8/12/2019 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: 416 397-4465jlavita@toronto.ca

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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Page 1

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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