Briefing Note: "2011 – 2014 Budget and Taxpayer Savings"

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    Josie La VitaDirector

    Roberto Rossini

    DCM & Chief Financial Officer

    Financial PlanningCity Hall, 7th Floor, East Tower100 Queen Street West

    Toronto, ON M5H 2N2

    Tel: 416 397-4229Fax: 416 [email protected]

    2014 OPERATING BUDGET BRIEFING NOTE

    20112014 Budget and Taxpayer Savings

    Issue / Background:

    This briefing note provides a summary and clarifies budget and taxpayer savings over the pastfour years from 2011 to 2014.

    As requested by the City Manager, a breakdown of the total property tax levy savings from2011-2014 is provided; these were incorporated in the City's operating budget and were requireto balance the operating budget in order to meet Council's directions.

    This briefing note will also assist Councillors in responding to inquiries from constituents.

    Key Points:

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    Local 79 productivity/efficiency savings ($49.2 million); and Increase in user fee revenues ($30.0 million).

    Operating budget savings referred in Appendix 1 is part of the difference between theCouncil approved net operating budget and the opening budget pressures as illustrated belo

    3,000

    3,500

    4,000

    4,500

    5,000

    2011 2012 2013 2014

    $Million

    Council Approved Net Operating Budget

    The Staff Recommended 2014 Operating Budget included savings of $147.0 millionresulting from efficiencies of $110.0 million and reduced capital financing costs of $37.0million. The 2014 Budget also included a $6.0 million increase in user fees which increasethe total savings, prior to other taxpayer savings, to $972.4 million.

    Appendix 1 shows the cumulative 2011 to 2014 Operating Budget savings totals $972.4

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    Permanent Savings

    Annual

    Budget

    Savings

    #

    Years Total

    Council Budget Reductions

    Reduced the Mayors Budget 0.8 4 3.2

    Reduction of City Council 0.8 4 3.2

    Total Council Budget Reductions 6.4

    Contract Out Garbage Collection Savings - 4 years 11.2 4 44.8(Total over 7 years save $78.4 million excluding inflation)

    Service Efficiency Savings and Base Budget Reductions - Permanent Savings

    2011 - cost reductions 57.0 1 57.0

    2012 - efficiencies ($267) & service reductions ($60) 327.0 1 327.0

    2013 - efficiency ($178) and reduced capital financing ($44) 222.0 1 222.0

    2014 - efficiencies ($110) and reduced capital financing ($37) 147.0 1 147.0

    Total Service Efficiency Savings and Base Budget Reductions 753.0

    Collective Agreement (savings on benefits)

    $54M in savings from reductions in city liabilities for post-age 65 retiree benefits (L416) 13.5 4 54.0

    $35M in productivity efficiencies and productivity gains (Local 416) 8.8 4 35.0

    Sub-Total 89.0

    $49.2M in savings, efficiencies and benefits liability reductions (Local 79) 49.2

    Total Collecti e Agreement Sa ings 138 2

    ($ Million)

    2011 - 2014 Budget and Taxpayer Savings

    Appendix 1

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    Tax Supported Operating Budget 2011 2012 2013 2014

    Total C

    ReductCitizen Centred Services "A"

    Affordable Housing Office -516 -88 0 0

    Children's Services -11,971 -1,490 0 -270 -13Court Services 0 -406 0 -1,656 -2

    Economic Development & Culture -588 -243 -300 0 -1

    Emergency Medical Services 0 -626 0 0

    Long Term Care Homes & Services 0 -1,315 -47 -578 -1

    Parks, Forestry & Recreation -960 -2,694 -7,080 -991 -11

    Shelter, Support & Housing Admin -7,534 -7,314 0 -3,561 -18

    Social Development, Finance & Admin -363 -536 0 -701 -1

    Toronto Employment & Social Services -7,738 -5,204 0 0 -12

    311 Toronto -375 -542 0 0

    Sub-Total Citizen Centred Services "A" -30,045 - 20,458 -7,427 -7,757 -65

    Citizen Centred Services "B"

    City Planning -81 -299 0 0

    Fire Services 0 -86 -5,369 -2,450 -7

    Municipal Licensing & Standards -1,162 -2,726 0 0 -3

    Policy, Planning, Finance & Admin -652 -1,784 0 -252 -2

    Engineering & Construction Services 0 0 0 0

    Toronto Buildings 0 -265 0 -125

    Toronto Environment Office -288 -554 0 0

    Transportation Services -4,427 -9,140 -510 -1,585 -15

    Waterfront Secretariat 0 0 0 0 Sub-Total Citizen Centred Services "B" -6,610 -14,853 -5,879 -4,412 -31

    Internal Services

    Office of the Chief Financial Officer -152 -376 -162 -346 -1

    Efficiencies and Permanent Cost Reductions - 2011 to 2014

    ($000s)

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    Appendix 2: Web-links to 2011-2014 Budget and Taxpayer Savings

    Description of Savings

    2011

    Supporting Information including web link

    AnnualBudget

    Savings

    TotalAnnualBudget

    Savings

    1 a) Reduction of Mayor's Budget a) 2011 Office of the Mayor Operating Budget Analyst Notes - page 2 Table "2011 Operating Budget"- gross expenditure and net expenditure reduction of $564.8 K see web link:

    http://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/mayors_office.pdf

    b) 2012 Office of the Mayor Operating Budget Analyst Notes - page 3 - table "2012 Operating Budget" -additional gross expenditure and net expenditure reduction of $102.8 K see web link:

    http://www.toronto.ca/budget2012/2012_budget_summary/pdf/operating/op12_mayor.pdf

    0.7

    0.1

    b) Reduction of City Council Budget 2011 City Council Operating Budget Analyst Notes - page 2 - table "2011 Operating Budget" shows agross expenditure and net expenditure reduction of 754$ K see web link:

    http://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/council.pdf 0.8 1.6

    2) Garbage collection savings over 7 years save$78.4 million excluding inflation

    Staff Report "Contract Award RFQ 6033-11-3186 Curbside Collection District 2", Date October 17,2011, City Council, section Financial Savings page 3 Cost Reductions see web link:

    http://www.toronto.ca/legdocs/mmis/2011/cc/bgrd/backgroundfile-41762.pdf 11.2

    3) Annual Operating Budget Efficiencies -Permanent Savingsa) 2011 - cost reductions

    2011 Operating Budget Summary page 3, Table 2 "2011 Balancing Strategies"Cost Reduction seeweb link:http://www.toronto.ca/budget2011/2011_budget_summary/pdf/cbo/2011operatingsummary.pdf 57.0

    http://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/mayors_office.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/mayors_office.pdfhttp://www.toronto.ca/budget2012/2012_budget_summary/pdf/operating/op12_mayor.pdfhttp://www.toronto.ca/budget2012/2012_budget_summary/pdf/operating/op12_mayor.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/council.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/council.pdfhttp://www.toronto.ca/legdocs/mmis/2011/cc/bgrd/backgroundfile-41762.pdfhttp://www.toronto.ca/legdocs/mmis/2011/cc/bgrd/backgroundfile-41762.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/cbo/2011operatingsummary.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/cbo/2011operatingsummary.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/cbo/2011operatingsummary.pdfhttp://www.toronto.ca/legdocs/mmis/2011/cc/bgrd/backgroundfile-41762.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/council.pdfhttp://www.toronto.ca/budget2012/2012_budget_summary/pdf/operating/op12_mayor.pdfhttp://www.toronto.ca/budget2011/2011_budget_summary/pdf/operating/mayors_office.pdf
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