Wednesday November 27, 2013 Social Planning Toronto

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The City must approve a balanced Operating Budget

Unlike federal and provincial governments, municipalities cannot run an operating deficit No borrowing to meet shortfall Emergent issues must be funded with reallocations or from emergency reserves No contingency fund is provided

Canadian municipalities receive just dollar collected in Canada 8¢

◦ ◦ 50 cents 42 cents goes to the federal government

of every tax

goes to the provincial/territorial governments Community Budget Priorities 2

     ◦ ◦ Property taxes don’t grow with economy or inflation ◦ The amount collected by property taxes remains unchanged unless the rate increases.

Operating costs increasing faster than revenues 1% increase in City expenses = $95 million 1% overall increase in property taxes = $37 million  1% increase for an average homeowner = $24 Provincial downloading and no cost share on transit The repeal of the Personal Vehicle Tax ◦ Eliminated $64 million per year Property Tax Freeze for 2011 ◦ Eliminated over $57 million per year The Mayor, still backed by some Councillors, continues to promise to reduce the Municipal Land Transfer Tax by 10% - and eventually eliminate it. The MLTT brings in over $300 million every year.

Community Budget Priorities 3

6,654 9,598

Paid by user fees, federal/ provincial transfers, etc.

Paid by property taxes –

average less than 3% increase per year

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Provincially Mandated

Shelter, Support & Housing Administration; $639,0 ; 6,7% Toronto Public Health; $245,9 ; 2,6% Children's Services; $403,5 ; 4,2% Long Term Care Homes & Services; $231,8 ; 2,4% Toronto Employment & Social Services; $1 172,1 ; 12,2% EMS; $187,8 ; 2,0% Fire Services; $422,7 ; 4,4%

TTC & Transportation

($Million) Transportation Services; $334,9 ; 3,5% TTC; $1 706,7 ; 17,8%

Municipal Services

Toronto Public Library; $183,9 ; 1,9% Economic Development & Culture; $69,1 ; 0,7% Parks , Forestry & Recreation; $409,7 ; 4,3% 28.1% 21.3% 17.7% 11.4% 6.9% 7.2% 7.4% Municipal Licensing and Standards; $49,7 ; 0,5% City Planning; $40,9 ; 0,4% Fleet and Facilities; $47,8 ; 0,5% Other City Services; $298,3 ; 3,1%

Governance

Governance and Internal Services; $707,7 ; 7,4% Debt Charges; $428,6 ; 4,5% Toronto Police Service; $1 088,9 ; 11,3%

Emergency Services

Capital & Corporate Financing; $262,0 ; 2,7% Other; $666,6 ; 6,9%

Mortgage payment on Capital Projects 5

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 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) $656,81 $365,69 $293,22 $279,21 $52,49 $49,49 $195,64 $141,01 $135,08 $117,92 $114,48

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}

$34,90 $33,18 $31,33 $14,18 * Not including Education Taxes $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 6

Base Budget New Enhanced Services Budget Impact Scarborough Subway Total Impact Residential 1.4% 0.6% 2.0% 0.5% 2.5% Total Average 0.9% 0.4% 1.3% 0.3% 1.6%  Plus TTC fare increase  $0.05 fare increase ($21M)  $5.25 MetroPass increase ($9M) The general inflation assumption used in the 2014 Budget is estimated at 2.2% . But… divisions were asked to keep to a 0% increase versus 2013 budget. Most divisions achieved the target.

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$6 000 $5 000 $4 000 $3 000 $2 000 $1 000 $0 GTA Average $4,370

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Capital Plan = $10,856 Capital from Current Reserves Debt 2009 150 103 375 2010 165 95 739 2011 182 89 666 2012 200 89 567 2013 220 119 465 2009 Total 917 496 2,813 2013 % 8.4% 4.6% 25.9% Capital Plan = $9,889 Capital from Current Reserves Debt 2014 240 406 630 2015 265 417 705 2016 291 350 554 2017 320 341 537 2018 352 284 344 2014 – Total 1,468 1,797 2,770 2018 % 14.8% 18.2% 28.0% * Scarborough Subway debt does not show up in the Capital Plan until 2019 9

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30 bed women’s shelter 16 new Free Program (aka Priority Centres) starting in September 2014 2 new libraries 31 new Fire Inspectors – converted from firefighter positions 3 recruitment classes of police officers totalling 300 56 new paramedics

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Year 2011 Win Loss • Property tax freeze funded by raiding one-time surplus funds • Increase in user fees • Cuts to TTC routes • User fees for adult recreation programs at Priority Centres • Cuts to libraries • Reduction in front-line City staff 11

Year 2012 Win • Restored childcare funding • Maintained free programs for children, youth, and seniors at Priority Centres • Restored pool and ice rink funding • Restored some funding for community agencies • Reversed cuts to homeless shelters • Reinstate funding to environmental programs Loss • Deferred hirings for Police, Fire, and EMS • Elimination of 29 Youth Outreach Workers • Reinstated in June 2012 • Reduction in service levels for street cleaning, snow removal, and tree maintenance 12

Year 2013 Win • Additional funds for Student Nutrition Program • New childcare spaces • Increase funds for community agencies • Elimination of adult user fees at Priority Centres • Increase funding for Public Library • Increase arts funding • Restart the Gardiner Environmental Assessment Loss • Prior year surplus not invested strategically • Capital investments prioritized above people • Roads prioritized above housing and recreation facilities • No service improvements for TTC • Not eliminating user fees for youth and children at indoors pools 13

9 Weeks Budget Launch •Nov. 25 Open House •Nov. 25 & 26 Budget Committee Deputations •Dec. 2 & 3 Budget Program Reviews at Budget Committee •Dec. 10-13 Budget Committee Wrap Up Meetings •Dec. 20 •Jan. 8 (Final) Executive Committee •Jan. 22 City Council •Jan. 29 & 30 Public Input 14