Ward 27 Presentation - 2014 Tax Supported Operating & Capital Budget

Budget Briefing
2014 Staff Recommended Tax Supported Operating and Capital Budget
Agenda
1. City Managers Overview 2. 2014 Operating Budget 3. 2014 2023 Capital Budget and Plan 4. Ward 27 Capital Investments 5. Questions & Answers
Strengthening Fiscal Health
Investing for the Future
2014 Budget Overview
City Managers Overview

The budget meets our budgetary challenges to contain City expenditures to inflationary levels or less Focuses on key strategic priorities addresses key service needs Makes new investments as directed by Council Improved the budget process and 1st year of Service Based Budget Minimizes tax increases and keeps Toronto competitive
Budget Context
The Challenge Opening Spending Pressure after revenue increases is more than $200M: inflationary expenditure increases Capital financing pressures depletion of reserves Loss of $129M provincial funding (Housing & OW) 2014-2016 Loss of $43M in 2014
Budget Context
The Challenge No use of previous years surplus 2 years in a row Continue to make infrastructure investments to reduce SOGR Backlog Remain within debt affordability ceiling Keep tax rate increases to a minimum and still address key Council investment priorities
2014 Budget Delivers

Operating Budget Provides: New & Enhanced Services Additional funding to meet TTC growth needs Investing more in front line Paramedics More Fire Prevention Officers Resources to re-start hiring new Police Officers New Supports for Arts Expand Priority Centres Extra resources for Planning Opening new Libraries and Recreation Facilities

Capital Budget and Plan provides:
More funding for the TTC for rolling stock and SOGR Rehabilitation of the Gardner Expressway Construction of the Fort York Visitor Centre New Wild Life Centre for the Zoo Centre Island Ferry Boat Replacement More Upgrades for BIA Streetscape Improvements Don Mills Civitan Arena TRCA address critical erosion control and damage repairs Continued construction of various community centres such as York and Regent Park Traffic Congestion Management More investments in PF&R to address infrastructure backlog
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Capital Budget & 10 year forecast continues a lower reliance on debt to improve fiscal sustainability Reaffirmed Strong Credit Ratings: AA+ Moodys Investors Service AA Stable Standards and Poors "The City of Toronto's credit rating of AA+ from Moody's Investor Services reflects: low debt burden and low debt service ratios, relatively high levels of cash reserves providing liquidity, positive operating results over the past several years, a large and diversified economy which represents a source of credit strength, and an important economic role as Canada's largest urban centre and its financial capital"
2014 Operating Budget

2nd year in a row that the Budget is balanced without using prior year surplus Minimizes tax increases and keeps Toronto competitive
2014 Budget Base Budget New & Enhanced Services Budget Tax Increase 0.9% 0.4% 1.3%
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2014 Property Tax Increase

Per Council Tax Policy
1.3%
2.0%
Residential
0.7%
Non- Residential
11
2014 Total Property Tax Impact:
Total Average 2014 Budget Scarborough Subway Total Tax Impact after Assessment Growth 1.3% 0.3% 1.6%
Residential 2.0% 0.5% 2.5%
Non-Residential 0.7% 0.2% 0.8%
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Summary
The 2014 Operating Budget is balanced Addresses key investments in public safety including more front line paramedics Responsible fiscal framework Moderate TTC fare Increases Keep taxes affordable: $51 / hhld or 2.0% for 2014 Budget $13 / hhld or 0.5% for Scarborough Subway $64 / hhld or 2.5% in total
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Blended Tax % Increase vs. Inflation

4% 3.32% 3%
3% 2.20% 2%
1.82%
2%
1.39%
1%
0.74%
1%
0% 0% 2011
1.59% 2012
1.29% 2013
1.30% 2014
0.96% 4 Yr Avg.
City of Toronto Blended Tax Rates
Inflation Rate Toronto (Stats Canada, Toronto)
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90% of the Growth in Net Expenditures since 2005 is Due to Police, Fire, EMS and TTC
$4,000 Police, Fire, EMS $420.4M, 56.4% $3,800
$3,600 $ Million
$3,400
TTC $252.3M, 33.9%
$3,200
Other $191.7M, 25.7%
$3,000 Cost Shared -119.3, -16.0% $2,800 2005

Base Year
2006
2007
Cost Shared
2008
2009
Other
2010
2011
2012
2013
2014
Police, Fire, EMS
Toronto Transit Commission (TTC)
15
Comparison of 2013 Residential Property Tax Rates GTA Municipalities

1.6% 1.4%
1.2% 1.0% 1.62%
0.75%
0.93%
0.4%
0.2% 0.0%
0.75%
0.80%
0.87%
0.89%
0.90%
0.91%
0.93%
0.93%
0.94%
0.94%
0.98%
0.99%
1.00%
1.05%
0.6%
1.16%
1.21%
1.24%
1.28%
1.32%
1.33%
Source: Metropolisiq.com
1.35%
1.38%
1.46%
0.8%
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Comparison of 2013 Average Property Taxes - GTA Municipalities - $1,100 less than average
$6,000 $5,000 GTA Average $4,370 $4,000 $6,054
$1,000
$0
$3,274 0.75%
$3,428
$3,510
$2,000
$3,526
$3,768
$3,773
$3,884
$3,937
$4,022
$4,059
$4,311
$4,373
$4,394
$4,456
$4,522
$4,548
$4,656
$4,836
$4,879
$4,895
Source: BMA Municipal Study
$5,047
$5,256
$5,468
$3,000
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Operating Budget Summary
18
Where the Money Goes: - Program Expenditures of $9.598 Billion

($Million)
Shelter, Support & Housing Administration, $639.0 , 6.7% Transportation Services, $334.9 , 3.5% TTC, $1,706.7 , 17.8% Toronto Public Library, $183.9 , 1.9% Economic Development & Culture, $69.1 , 0.7% Parks , Forestry & Recreation, $409.7 , 4.3%
Toronto Public Health, $245.9 , 2.6%
21.3%
Children's Services, $403.5 , 4.2%
11.4%
Municipal Licensing and Standards, $49.7 , 0.5% City Planning, $40.9 , 0.4%
28.1%
7.4%
Long Term Care Homes & Services, $231.8 , 2.4%
7.2% 17.7% 6.9%
Fleet and Facilities, $47.8 , 0.5% Other City Services, $298.3 , 3.1%
Governance and Internal Services, $707.7 , 7.4% Debt Charges, $428.6 , 4.5% Capital & Corporate Financing, $262.0 , 2.7%
Toronto Employment & Social Services, $1,172.1 , 12.2%
EMS, $187.8 , 2.0% Fire Services, $422.7 , 4.4% Toronto Police Service, $1,088.9 , 11.3% Other, $666.6 , 6.9%
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Where the Money Comes From - Program Revenues of $9.598 Billion

($Billion)
Federal Grants & Subsidies, $0.174 , 1.8% Provincial Grants & Subsidies, $1.834 , 19.1% Other Subsidies, $0.149 , 1.6%
User Fees, $1.637 , 17.1% Fines & Penalties, $0.133 , 1.4% Interest & Investment Income, $0.206 , 2.1% Reserves / Reserve Funds, $0.446 , 4.6%
MLTT, $0.342 , 3.6% Other Revenues, $0.823 , 8.6% Prior Year Surplus, $0.000 , 0.0% Transfers from Capital, $0.140 , 1.5%
Property Taxes, $3.765 , 39.2%
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Staff Recd 2013 Tax Supported Program Operating Budget - By Cluster

($000s) Citizen Centred Services "A" Citizen Centred Services "B" Internal Services City Manager Other City Programs Accountability Offices Total City Operations TTC/Wheel Trans Police Services and Board Toronto Public Library Toronto Public Health Other Agencies Agencies Corporate Accounts: Capital & Corporate Financing Non-Program Expenditures Non-Program Revenues Net Operating Budget Assessment Change TCHC Tax Exemption Total Assessment Changes Net Operating Budget After 2013 Budget Gross 3,291,013 974,359 447,515 52,815 114,649 7,121 4,887,473 1,643,318 1,022,501 182,030 243,688 177,105 3,268,642 655,019 639,008 9,136 9,459,278 Net 932,119 646,664 180,761 44,811 72,321 7,121 1,883,797 507,774 930,865 165,360 50,420 26,904 1,681,323 617,298 489,564 (959,094) 3,712,888 2014 Budget Gross 3,209,021 984,720 453,292 54,569 130,070 7,740 4,839,411 1,706,721 1,088,860 183,910 245,942 175,616 3,401,049 690,552 657,135 9,445 9,597,593 Net 915,349 657,250 181,742 45,259 72,649 7,740 1,879,989 534,504 960,019 167,327 51,006 27,237 1,740,094 654,358 475,061 (984,304) 3,765,199 (22,000) 18,428 (3,572) 3,761,627 Change from 2013 Gross $ % (81,992) (2.5%) 10,361 1.1% 5,776 1.3% 1,753 3.3% 15,421 13.5% 8.7% 619 (1.0%) (48,061) 63,403 3.9% 66,359 6.5% 1,880 1.0% 2,254 0.9% (0.8%) (1,489) 4.1% 132,407 35,533 18,127 310 138,315 5.4% 2.8% 3.4% 1.5% Over (Under) Net $ % (16,770) (1.8%) 10,586 1.6% 981 0.5% 448 1.0% 329 0.5% 8.7% 619 (0.2%) (3,808) 26,730 5.3% 29,154 3.1% 1,968 1.2% 586 1.2% 1.2% 334 3.5% 58,772 0.0% 37,060 6.0% (14,503) (3.0%) 2.6% (25,210) 1.4% 52,311 (22,000) 0 18,428 0 (3,572) 1.3% 48,739
9,459,278
3,712,888
9,597,593
138,315
1.5%
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2014 Balancing Strategies

Balancing Pressure $210 Million
250
200
9 34 22 20 7 210 23 12 28
150
100
50
22
14 49
0 Revised Absorbed Other Base Efficiency Municipal TTC Expenditure Inflationary Savings and Service Land Ridership Pressure Increase Change Transfer Tax Growth TTC Fare Increase Other Revenue Change Housing Reserve Draw Assessment Growth New & Enhanced Tax Rate Increase
22
Where the Money Goes - $3.765 Billion Tax Levy

Police Service & Board TTC (Incl. Wheel Trans) Debt Charges Fire Services Parks, Forestry & Recreation Transportation Services Shelter, Support & Housing Admin Toronto Employment & Social Services Toronto Public Library Children's Services Emergency Medical Services Toronto Public Health
$656.81 $365.69 $293.22 $279.21 $195.64 $141.01 $135.08 $117.92 $114.48 $52.49 $49.49 $34.90 $33.18 $31.33 $14.18 $13.65 $10.42 $7.83 $7.04 $4.90 $2.31 $15.24 $50.00 $150.00 $250.00 $350.00 $450.00 $550.00 $650.00 30 70
Total = $2,576*
{Based on Property Tax of $2,576 (includes proposed 2.00% property tax increase) for an average house with an assessed value of $498,000} * Not including Education Taxes
(Millions)
Economic Development & Culture Long Term Care Homes & Services Municipal Licensing & Standards City's Council City Planning Toronto Zoo 311 Toronto Association of Community Centres Toronto Region Conservation Authority Other*
($150.00)
($50.00)
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Provincial Funding Loss 2014 to 2016 ($ Millions)

$140 5.39% $120
$100
$80 $128.8
$60 1.78% $40 1.80% 1.81%
$20
$42.5
$43.1
$43.2
$0 2014 2015 2016 Total
24
Provincial Funding Loss 2014 to 2016 ($ Millions)

$140 5.39% $120
$100 3.58% $80 $42.5 $60 1.81% $40 $128.8
$20
$43.1
$43.2
$0 2014 2015 2016 Total
25
2015 /2016 Budget Outlook

($ Millions)
2015 67 8 34 13 30 13 22 42 101 71 400
2016 36 7 9 7 16 9 24 39 76 99 322
26
Compensation & Benefits Non-labour Inflationary Impact Annualization of Prior Year Decisions Operating Impact of Completed Captial Projects Depletion of Reserves Other Base Budget Changes CFC (Capital From Current) Debt Charges TTC (before ridership growth) Other Expenditures Total Expenditure Pressures
2015 /2016 Budget Outlook - Continued

($ Millions)
2015 400 (17) (7) (5) (4) 6 76 50 450 (40) (49) (30) 331
2016 322 (16) (15) (5) (1) (2) 38 (1) 322 (40) (50) (30) 202
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Total Expenditure Pressures Revenue Change: TTC Ridership Growth Uploading of Services Dividend Income User Fees/Revenue Change Parking Authority Revenues Provincial Funding Loss Total Revenue Change Pressure after Revenue Changes: TTC Fare Increase (10 Cents) Property Tax Rate Increase -(2.0% Residential/0.67% Non-Residential) Assessment Growth Remaining Pressure
Staff Recommended Tax Supported Capital Budget and Plan
28
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Budget Context
The Challenge Increased investment need in SOGR Gardiner Expressway; TTC; Parks, Forestry & Recreation Uncertainty over Federal and Provincial Funding Accommodate Ridership Growth Keep debt service costs below the 15% guideline Future TTC Requirements
29
Capital Budget and Plan

2013 to 2022 Budget and Plan was $15.260 Billion 2014 to 2023 Budget and Plan is $18.611 Billion, with increased investments in:
Transportation Services: $137million Park, Forestry & Recreation: $286 million Scarborough Subway: $3.437 billion
30
2014 2023 Capital Budget and Plan is $18.611 Billion - Where the Money Goes
$ Million 73% TTC & Transportation
Toronto Transit Commission , $6,325 , 34% Spadina Subway Extension, $793 , 4%
Scarborough Subway Extension, $3,437 , 18%
Parks, Forestry & Recreation, $1,081 , 6% Facilities Management & Real Estate, $875 , 5% Toronto Police Service, $519 , 3% Fleet Services, $464 , 2% Information & Technology, $407 , 2%
Transportation Services, $3,081 , Other, $1,077 , 6% 17% Waterfront Revitalization Initiative, $176 , 1% Long Term Care Homes Services, Toronto Public $132 , 1% Library, $243 , 1%
31
2014 2023 Capital Budget & Plan - $18.611 Billion- Where the money comes from
$ Million
Provincial Subsidy, $3,498 , 19% Debt Recoverable, $313 , 2% Federal Subsidy, $2,368 , 13%
Debt, $3,287 , 18%
Reserves / Reserve Funds, $3,268 , 17%
Other, $838 , 4% Capital from Current, $3,833 , 21% Development Charges, $1,207 , 6%
32
2014 Capital Budget - $2.193 Billion

$ Million 2014 Capital Budget & Plan Where the money goes 69% TTC & Transportation
Toronto Transit Commission , $916 , 42% Spadina Subway Extension, $201 , 9% Transportation Services, $303 , 14%
2014 Capital Budget & Plan Where the money comes from Debt Funding 29%
Debt Recoverable, $74 , 3%
Provincial Subsidy, $301 , 14%
Federal Subsidy, $211 , 10% Reserves / Reserve Funds, $481 , 22%
Parks, Forestry & Recreation, $153 , 7%
Debt, $631 , 29% Facilities Management & Real Estate, $148 , 7% Toronto Police Service, $39 , 2% Fleet Services, $42 , 2% Waterfront Revitalization Initiative, $63 , 3% Information & Technology, $61 , Toronto Public 3% Library, $27 , 1%
Development Charges, $91 , 4% Other, $164 , 7% Capital from Current, $240 , 11%
Other, $213 , 9% Long Term Care Homes Services, $28 , 1%
33
2014 2023 Capital Budget and Plan - by Category and Financing Source
$ Million
Expenditures ($M) Health and Safety Legislated State of Good Repair Service Improvement Growth Related Total Expenditures Funded By: Provincial Federal Reserves Reserve Funds DC Other Capital from Current Debt Recoverable Debt Total Funding 2014 22 61 1,359 299 467 2,208 Capital Plan 2015 2016 2017 28 30 24 80 91 80 1,532 1,291 1,272 342 228 139 511 560 378 2,493 2,200 1,893 2018 16 77 1,134 92 443 1,764 2014 - 2018 Total % 121 1.1% 388 3.7% 6,588 62.4% 1,101 10.4% 2,360 22.4% 10,558 100% 2019 - 2023 Total % 97 1.2% 50 0.6% 4,556 56.6% 315 3.9% 3,036 37.7% 8,053 100% 2014 - 2023 Total % 218 1.2% 438 2.4% 11,144 59.9% 1,416 7.6% 5,396 29.0% 18,611 100.0%
301 211 406 87 91 164 240 74 633 2,208
389 231 417 52 142 196 265 96 705 2,493
349 229 350 64 174 159 291 31 554 2,200
219 189 341 61 149 56 320 22 537 1,893
305 221 284 92 99 53 352 15 344 1,764
1,563 1,081 1,797 355 655 627 1,468 238 2,773 10,558
14.8% 10.2% 17.0% 3.4% 6.2% 5.9% 13.9% 2.2% 26.3% 100.0%
1,935 1,287 1,009 106 551 210 2,364 75 515 8,053
24.0% 16.0% 12.5% 1.3% 6.8% 2.6% 29.4% 0.9% 6.4% 100.0%
3,498 2,368 2,806 462 1,207 838 3,833 313 3,287 18,611
18.8% 12.7% 15.1% 2.5% 6.5% 4.5% 20.6% 1.7% 17.7% 100.0%
Includes Scarborough Subway
34
2014 2023 Scarborough Subway Capital Budget and Plan

$ Million
Expenditures ($M) Growth Related Total Expenditures Funded By: Provincial Federal Reserve Funds DC Debt / Tax Supported Total Funding Capital Plan 2014 - 2018 2014 2015 2016 2017 2018 Total % 15 16 97 186 355 669 100.0% 15 16 97 186 355 669 100.0% 12 3 15 9 3 3 1 16 54 18 20 5 97 105 35 38 9 186 199 66 73 17 355 367 122 147 30 3 669 54.9% 18.2% 22.0% 4.6% 0.4% 100.0% 2019 - 2023 Total % 2,768 100.0% 2,768 100.0% 1,554 515 42 129 529 2,768 56.1% 18.6% 1.5% 4.7% 19.1% 100.0% 2014 - 2023 Total % 3,437 100.0% 3,437 100.0% 1,921 637 188 159 531 3,437 55.9% 18.5% 5.5% 4.6% 15.5% 100.0%
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SOGR Backlog As a % of Capital Asset Value
3,000 2,500
7.00%
6.50%
$ Million
2,000 1,500 1,000 5.50% 500 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 5.00% 6.00%
Accumulated Back Log Estimate (end of year)
Backlog % Asset Value
36
Adjustments to Requested TTC Capital Plan

$Millions Final TTC 10-Year Request Actions Taken Deferred Wheel-Trans Projects Pending Review of Future Needs (New Garage and 112 Buses) Reduced Track Replacement Project Cost - Sharing Increased Toronto Water Contribution for Leslie Barns Increased Development Charge Funding Revised TTC 10-Year Request Projects Placed Below the Line Recommended TTC 10-Year Plan 8,851 (2,526) 6,325 Gross 9,072 Debt 5,012 Impact on Debt 3,134
(203) (18)
(203) (18) (10) (253) 4,528 (2,526) 2,002
(203) (18) (10) (253) 2,650 (2,526) 124
37
Next Steps
The TTC has significant unmet needs despite sizeable investment by the City There is a need for a Tri-Party Partnership between the Feds, Province and the City for a dedicated, long term, stable funding plan Special City/TTC Taskforce will be established to prioritize, seek and secure funding from the Provincial and Federal governments
38
Debt Charges as % of Tax Levy including Scarborough Subway
39
2014 Budget Schedule - Key Dates

Apr. - May Jun. Oct. Nov. 25 Nov. 25/26 Dec. 2 Jan. 8 Jan. 22 Jan. 29 & 30
City CM/ CFO Programs Budget & Agencies Review Prepare Staff Prepare Budget Recommended Operating / Capital Budget
Public Launch
Drop In Sessions
Budget Committee
Executive Committee
City Council
BC Consideration Introduction Open House Public Hearing Recommended & Adoption of of Capital For BC Reviews & Operating & Operating and Councillors Wrap-up Capital and Capital Operating Submission to Budget Budgets Council
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Budget Process is more Transparent

Provides new communication tactics to enhance civic engagement including:
New 2014 Budget website Open House / Budget Drop in Sessions Whiteboard animation video Budget Basic Sheets Budget at a Glance Info graphics Updated Analyst Notes
http://www.toronto.ca/budget2014
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Ward 27 Capital Investments
42
Capital Projects in Ward 27

2014 Watermain Construction & Sewer Rehabilitation: Astley Ave., Balmuto St., Bellair St., Charles St., Edward St., Elizabeth St., Gerrard St., Macpherson Ave., Mutual St., Pricefield Rd., Rosedale Heights Dr., Rosedale Valley Rd., Rowanwood Ave., Roxborough Dr., Roxborough St. W., Sherbourne St. N., St. Thomas St., Thornwood R., Wellesley St. W., Yorkville Ave.
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2014 Road Resurfacing & Streetscape Improvements: Carlton St., Church St., Bellair, St., Charles St., Hillsboro Ave., Hudson Dr., Inglewood Dr., Jean St., Molson St., Queens Park Cres., South Dr., St. Clair Ave. E., Summerhill Ave., Welland Ave., Wellesley St. W., Yorkville Ave.,
44

Park Improvements - $6.4M Queens Park Development of Master Plan Ramsden Park Design & Revitalization Village of Yorkville Park Rehabilitation Town Hall Square Park Rehabilitation
45

Park Improvements Continued Jesse Ketchum Park Redevelopment Asquith Green Park Rehabilitation Allan Gardens :
Playground construction
Washroom Artist Gardens consultation

46

Cultural Infrastructure Development: Prince Edward Viaduct (Bloor Street) illumination for PanAm Games ($1.6M) Preservation of Heritage Elements: Mackenzie House Restoration ($1.095M) Shelter & Long-Term Care Redevelopment: George Street Revitalization ($22M)
47
Thank You!
For more information or questions, please visit: http://www.toronto.ca/budget2014 or e-mail: councillor_wongtam@toronto.ca
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Ward 27 Presentation - 2014 Tax Supported Operating & Capital Budget

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Budget Briefing

2014 Staff Recommended Tax Supported Operating and Capital Budget

Strengthening Fiscal Health

Investing for the Future

2014 Budget Overview

City Managers Overview

Strengthening Fiscal Health

Investing for the Future

Strengthening Fiscal Health

Investing for the Future

Strengthening Fiscal Health

Investing for the Future

2014 Budget Delivers

Strengthening Fiscal Health

Investing for the Future

2014 Budget Delivers

Strengthening Fiscal Health

2014 Budget Delivers

Strengthening Fiscal Health

Investing for the Future

2014 Operating Budget

Strengthening Fiscal Health

Investing for the Future

2014 Property Tax Increase

2014 Total Property Tax Impact:

Residential 2.0% 0.5% 2.5%

Non-Residential 0.7% 0.2% 0.8%

Strengthening Fiscal Health

Investing for the Future

Strengthening Fiscal Health

Investing for the Future

Blended Tax % Increase vs. Inflation

City of Toronto Blended Tax Rates

Inflation Rate Toronto (Stats Canada, Toronto)

Strengthening Fiscal Health

Investing for the Future

TTC $252.3M, 33.9%

Other $191.7M, 25.7%

$3,000 Cost Shared -119.3, -16.0% $2,800 2005

Toronto Transit Commission (TTC)

Strengthening Fiscal Health

Investing for the Future

Comparison of 2013 Residential Property Tax Rates GTA Municipalities

1.2% 1.0% 1.62%

Strengthening Fiscal Health

Investing for the Future

Source: BMA Municipal Study

Strengthening Fiscal Health

Investing for the Future

Operating Budget Summary

Where the Money Goes: - Program Expenditures of $9.598 Billion

Toronto Public Health, $245.9 , 2.6%

Long Term Care Homes & Services, $231.8 , 2.4%

7.2% 17.7% 6.9%

Toronto Employment & Social Services, $1,172.1 , 12.2%

Strengthening Fiscal Health

Investing for the Future

Where the Money Comes From - Program Revenues of $9.598 Billion

Property Taxes, $3.765 , 39.2%

Strengthening Fiscal Health

Investing for the Future

Staff Recd 2013 Tax Supported Program Operating Budget - By Cluster

Strengthening Fiscal Health