humber bay parks in the 2016 toronto capital budget

8/17/2019 Humber Bay Parks in the 2016 Toronto Capital Budget

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Humber Bay Parks in the Toronto 2016 Capital Budget

(Published December 14, 2015)

Introduction: What is the Budget

The City’s budget is a financial plan that describes how much money the City will raise and spend within

a year. It is the blueprint that aligns the City’s priorities with the services we deliver to residents and

guides decisions on what City infrastructure will be purchased, built and repaired. Each year, City staff

put forward a preliminary budget and then the Mayor and City Council − with input from Toronto

residents and businesses − make decisions about the City’s services, programs and infrastructure and

approve the City’s final budget.

Operating vs. Capital – what’s the difference?

The operating budget covers day-to-day spending on services such as recreation programs, parks

maintenance, public health, city roads, garbage collection, delivery of safe drinking water, transit, police

and other emergency services. Approximately 34% of the funds for the operating budget come from

property taxes. The remainder comes from provincial grants and subsidies, as well user fees.

The capital budget funds the City’s assets that support service delivery. It pays for the for the

construction and repair of transit, roads, bridges, public buildings such as libraries, community centres

and fire stations, water and sewer facilities, parks and other major infrastructure projects. The City of

Toronto updates and presents a new 10- year Capital Budget and Plan each year as part of the annual

budget process. The capital budget is funded from reserves, development charges, other levels of

government and by borrowing funds or taking on debt.


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Explaining the difference between ‘gross’ and ‘net’ costs

The gross is the total cost to deliver programs and services. This expenditure is offset by funding and

subsidies for cost-shared services as well as fees and charges for programs and services. The difference

between gross expenditure and these revenue sources is the net budget, which is the amount of the

operating budget that is paid for by your property taxes.

Budget surpluses and deficits

A surplus occurs when the City either spends less than it thought it would, or raises more revenue than

predicted. The City has a policy to use 75% of operating budget surpluses to fund infrastructure projects

in the capital budget and 25% to top-up reserves to meet City obligations. The City of Toronto has never

had a deficit, as provincial law requires the City to balance its budget. A deficit would occur if the City’s

expenses were greater than its revenues, or if the City collected less revenue than it anticipated.

Balancing the budget

The City is required by provincial law to balance its operating and capital budgets each year – which

means that the money spent must be equal to the money raised. To balance the budget, the City can either

increase its revenues using tools such as property taxes and fees, or through managing expenses by

changing or reducing the cost of services.


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Glossary of Terms

Reserve Funds: Multiple Parkland Acquisition and Parks Cash-in-lieu Reserve Funds provide funding

for LandAcquisition, Park Development, Playgrounds & Water play, and Special Facilities projects.

Development Charge: This funding source is primarily allocated to Community Centre, Park

Development , Pool , Playgrounds & Waterplay, Arena, Trails & Pathways, and Outdoor RecreationCentre projects.

Other Revenues: Secured Section 37, Section 45, Section 42 Alternate Rate Cash-in-lieu, developer

agreements, donations, and partnership funding.

The 10-Year Capital Plan dedicates $633.879 million to SOGR spending over the capital planning period,

which on average is $63.388 million annually.

The replacement value of Parks, Forestry and Recreation's infrastructure is estimated at $2.538

billion comprised of 9 major asset types:

At the end of 2015, Parks, Forestry and Recreation has a state of good repair backlog of $311.424

million, representing 12.5% of the asset replacement value. The backlog by asset type is

presented in Table 4 on the next page. Parks, Forestry and Recreation undertakes state of good repair condition surveys of assets on a 5-

year cyclical basis

The backlog estimates for the various facilities and infrastructure is based on due diligence audits

which provide a comprehensive assessment to confirm the scope of the repairs and the detailed

costs associated with the rehabilitation requirements.

As part of the 2014 Budget process, additional debt funding of $165 million was added to the

2014-2023 Capital Budget and Plan with the specific intent to reduce the SOGR backlog,

allocated to fourasset categories: Trails & Pathways, Arenas, Community Centres, and Pools that

were trendingtoward high backlog balances.

This significant investment in infrastructure renewal projects will reduce the backlog ofSOGRwork to $120.952 million by year-end 2025, representing 4.8% of the asset replacement

value.

Total planned cash flow funding for SOGR projects of $633.879 million over the 10 year period

isallocated to various asset categories as presented in the table below, as well as other

SOGRspending on parks and facilities rehabilitation, environmental initiatives, capital emergency

fundand audits.


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Gross Expenditures ($000’s) [p. 47 of pdf]

Appendix 3: 2016 Capital Budget; 2017 to 2025 Capital Plan

Parks, Forestry & Recreation

PKS000016 — Outdoor Recreation Centres

Humber Bay East – New Pavilion S37/S45Ward 6, Stat. S4, Cat. 04.

Priority: 6

Project #: 346

Current and Future Year Cash Flow Commitments:

2016 – $540,000

2017 – $4,305,000

2018 – $2,155,000

2019 – $0

2020 – $0

Total 2016-2020 – $7,000,000

Total 2021-2025 – $0

Total 2016-2025 – $7,000,000

Current and Future Year Cash Flow Commitments Financed By:

Development Charges – $4,590,000

Reserve Funds $550,000

Other 1 – $1,500,000Total Financing: $7,000,000


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PKS000017--Park Development

Humber Bay Parkland-Parks Revitalization S42Ward 6, Stat. S4, Cat. 04.

Priority: 0

Project #: 760

Current and Future Year Cash Flow Commitments

2016 – $475,000

2017 – $0

2018 – $0

2019 – $0

2020 – $0

Total 2016-2020 – $475,000

Total 2021-2025 – $0

Total 2016-2025 – $475,000

Current and Future Year Cash Flow Commitments Financed By

Other 1 – 475,000

Total Financing – $475,000


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Appendix 4: 2016 Cash Flow and Future Year Commitments




Priority: 6

Project #: 346


2016 – $540,000

2017 – $4,305,000

2018 – $2,155,000

2019 – $0

2020 – $0

Total 2016-2020 – $7,000,000

Total 2021-2025 – $0

Total 2016-2025 – $7,000,000


Development Charges – $4,950,000

Reserve Funds – $550,000

Other 1 – 1,500,000 Total Financing – $7,000,000

Park Allocation Funds Collected, 2011-2014


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Humber Bay Parkland-Parks Revitalization S42Ward 6, Stat. S4, Cat. 04.

Priority: 0

Project #: 760


2016 – $475,000

2017 – $0

2018 – $0

2019 – $0

2020 – $0

Total 2016-2020 – $475,000

Total 2021-2025 – $0

Total 2016-2025 – $475,000


Other 1 – 475,000



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Project Financing [p. 85 of pdf]

Appendix 5: 2016 Capital Budget with Financing Detail




Priority: 6

Project #: 346

Start Date: 02/10/2016

Completion Date: 12/31/2018

2016 Cash Flow – $540,000

Financing:

Development Charges – $486,000






Humber Bay Parkland-Parks Revitalization S42

Ward 6, Stat. S4, Cat. 04.

Priority: 0Project #: 760



2016 Cash Flow – $475,000

Financing:

Other 1 – $475,000


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I have also included the Humber Bay Shores Park areas because in some of the City of Toronto

documents, Councillor Mark Grimes includes Humber Bay Park East and West as part of the Humber

Bay Shores area. For instance, in his Humber Bay Shores - Request for Review and Plan, dated September

10, 2013, he states, “The Humber Bay Shores area, including its Parks (East and West) can be found west

of the Humber River, east of Mimico and south of Lake Shore Boulevard West and is about 25 years old.”

http://www.toronto.ca/legdocs/mmis/2013/ey/bgrd/backgroundfile-61412.pdf




PKS000022 — Trails & Pathways

Humber Bay Shores Park Construction - PF&R/Transp


Priority: 0

Project #: 253


2016 – $250,000

2017 – $0

2018 – $0

2019 – $0

2020 – $0

Total 2016-2020 – $250,000

Total 2021-2025 – $0Total 2016-2025 – $250,000



Other 1 – $125,000


http://www.toronto.ca/legdocs/mmis/2013/ey/bgrd/backgroundfile-61412.pdfhttp://www.toronto.ca/legdocs/mmis/2013/ey/bgrd/backgroundfile-61412.pdfhttp://www.toronto.ca/legdocs/mmis/2013/ey/bgrd/backgroundfile-61412.pdf


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Humber Bay Shores — Additional FundsWard 6, Stat. S3, Cat. 04.

Priority: 4

Project #: 272


2016 – $1,000,000

2017 – $0

2018 – $0

2019 – $0

2020 – $0

Total 2016-2020 – $1,000,000

Total 2021-2025 – $0

Total 2016-2025 – $1,000,000




Total Financing – $1,000,000


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Humber Bay Shores Park Construction - PF&R/TranspWard 6, Stat. S2, Cat. 04.

Priority: 0

Project #: 253


2016 – $250,000

2017 – $0

2018 – $0

2019 – $0

2020 – $0

Total 2016-2020 – $250,000

Total 2021-2025 – $0

Total 2016-2025 – $250,000



Other 1 – $125,000



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Humber Bay Shores — Additional FundsWard 6, Stat. S3, Cat. 04.

Priority: 4

Project #: 272


2016 – $1,000,000

2017 – $0

2018 – $0

2019 – $0

2020 – $0

Total 2016-2020 – $1,000,000

Total 2021-2025 – $0

Total 2016-2025 – $1,000,000




Total Financing – $1,000,000


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Humber Bay Shores Park Construction - PF&R/TranspWard 6, Stat. S2, Cat. 04.

Priority: 0

Project #: 253



2016 Cash Flow – $250,000

Financing:


Other 1 – $125,000


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Humber Bay Shores — Additional Funds


Priority: 4

Project #: 272



2016 Cash Flow – $1,000,000

Financing:



http://www.toronto.ca/legdocs/mmis/2016/bu/bgrd/backgroundfile-86731.pdf

http://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administrati

on/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trai

ls/Humber-Bay-Shores-April-2015-panels.pdf

EX14.12 Appendix 1: 2015 Carry Forward Funding-2016 Capital Budget Adjustments for CarryForward Funding

2016 Capital Budget

Additional 2015 and 2014 and Prior Year Carry — Forward Requests

PKS000017-760: Humber Bay Parkland — Parks Revitalization

2015

Plan: $200,000

Actual Expenditure: $73,000

Unspent: 127,000

Carry-Forward Funding Already Included in 2016 Budget Request: $175,000

Carry-Forward Funding/Additional (in $)

(Incremental) 2015 Carry-Forward Funding: (48,000)

http://www.toronto.ca/legdocs/mmis/2016/bu/bgrd/backgroundfile-86731.pdfhttp://www.toronto.ca/legdocs/mmis/2016/bu/bgrd/backgroundfile-86731.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www1.toronto.ca/City%20Of%20Toronto/Policy,%20Planning,%20Finance%20&%20Administration/Public%20Consultation%20Unit/Studies/Transportation/Humber%20Bay%20Shores%20Park%20Trails/Humber-Bay-Shores-April-2015-panels.pdfhttp://www.toronto.ca/legdocs/mmis/2016/bu/bgrd/backgroundfile-86731.pdf


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(Incremental) 2014 Carry-Forward Funding: $0

Carry-Forward Funding to 2016 Budget

Total Carry-Forward Funding: $127,000

% of 2015 App. Plan: 64%

PKS000022-252: Humber Bay Shores Park – Design

2015

Plan: $53,220


Unspent: $17,680

Carry-Forward Funding Already Included in 2016 Budget Request: $0



(Incremental) 2014 Carry-Forward Funding: $17,680


Total Carry-Forward Funding: $17,680

% of 2015 App. Plan: 33%

PKS000022-253 Humber Bay Shores Pk Construction – PF&R/T

2015

Plan: $550,000


Unspent: ($41,618)

Carry-Forward Funding Already Included in 2016 Budget Request: $250,000


(Incremental) 2015 Carry-Forward Funding: ($250,000)



Total Carry-Forward Funding: -

% of 2015 App. Plan: 0


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Glossary of Terms

Capital Budget Amendments - In-year amendments / adjustments to the approved Capital Budget and

Plan that defer, accelerate or change the scope of an approved capital project, or add a new capital projectrequire Council approval. A separate report requesting approval to adjust the approved capital budget and

/ or capital plan must be submitted to City Council. At a minimum, the report must include details of

projects being added, accelerated, requiring increased funding along with details of projects being

decelerated as well as the associated change in total project costs, or otherwise adjusted in order to ensure

that the Council approved 10-year capital budget and plan for the requesting City Program or Agency

remain unchanged.

Technical in-year budget adjustments will be reported as part of the quarterly capital variance reports.

Technical in-year capital budget adjustments must have no incremental debt impact on the approved 10-

year capital budget and plan.

Division Heads are responsible for ensuring that capital budgets under their respective authority are not

over expended and that expenditures are substantially in accordance with the Capital Budget and Plan

approved by Council. In-year budget adjustments will generally be permitted in situations of emergencies,

significant unforeseen events, or where a need can be demonstrated.

The Financial Control By-law (Chapter 71) establishes the responsibility and authority levels required for

in-year capital budget change as follows:

The capital budget approved by Council establishes the spending authority for a capital project.

Division heads shall ensure that expenditures do not exceed the approved budget for a capital project.

Division heads shall report any anticipated over expenditure to the Chief Financial Officer, City

Manager, and the Budget Committee as soon as the potential over expenditure is known.

http://www.toronto.ca/legdocs/municode/1184_071.pdf (Toronto Municipal Code, Chapter 71, Financial

Control)

Capital Expenditures – Capital expenditures generally include any expenditure on an asset acquired,

constructed or developed with the intention of being used beyond the current budget year. Capital

expenditures also include major improvements, which alter or modernize an asset in order to substantially

prolong its useful life or improve its physical output or service capacity.

Carry Forward of Previously Approved Project Funding – A capital project with carry forward

funding is a previously approved project for which the associated cash flow budget was not fully spent

and/or committed in the year of approval. Consequently, City Programs and Agencies may request that

the unspent amount be ‘carried forward’ into the future to complete the project. The City’s carry forward

policy stipulates that unspent cash flow funding for capital projects/sub-projects may only be carried

http://www.toronto.ca/legdocs/municode/1184_071.pdfhttp://www.toronto.ca/legdocs/municode/1184_071.pdfhttp://www.toronto.ca/legdocs/municode/1184_071.pdf


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forward one year subsequent to the year of approval, and that the carry forward cash flow amount cannot

exceed the difference between actual expenditures and the approved cash flow.

Carry forward funding funded by debt will not be granted, if a project/sub-project requires carry forward

funding beyond one year, or a change in cash flows and/or project costs change the scope of a project.

Alternatively, such requests will be treated as new funding requests for the upcoming budget.

Debt Financing – Debt will be used for the acquisition, construction, renovation, repair or remodelling of

capital assets where the project cannot be funded from current operating revenues or other funding

sources, and the Chief Financial Officer considers it prudent to use debt to finance the project. As a

general rule, projects funded with debt must have a useful life that is at least equal to the term of the

debenture.

Debt Service Ratio – Council affirmed that the maximum limit of debt service charges as a percentage of

total property tax be established at 15% as a benchmark for evaluating capital expenditure levels. The

debt charges incurred due to debt issuance will be included in the annual operating budget.

Financing Sources – Financing sources of a particular project will be explored and properly identified to

considering debenture financing. Typical funding sources includes reserves and reserve funds, Provincial

and Federal grants, development charges, capital from current funding (or pay-as-you-go financing), debt,

and other funding sources such as donations.

Land Acquisition Costs – Every proposed capital project requiring the acquisition of land shall be

accompanied by a cost estimate for the real estate acquisition portion of the project. Every proposed

capital project requiring the assignment of City-owned lands shall be accompanied by a valuation of the

opportunity cost of that land according to procedures of the Property Management Committee.

Reserves/Reserve Funds – A reserve is an allocation of accumulated net revenue that is a part of the

revenue fund and, thus, does not earn interest on its own. In addition, reserves make no reference to any

specific asset and do not require the physical segregation of money or assets. It is distinct from a reserve

fund, which earns interest, and is segregated and restricted to meet a specified purpose. The use and

funding sources of reserves/reserve funds are determined by the City’s CFO, in consultation with

beneficiary programs. Moreover, the CFO shall report to the Policy and Finance Committee on the

inflows to and outflows from each reserve/reserve fund on a quarterly basis.

Project Funded by Capital from Current Funding (CFC) – CFC is a provision of tax funding that is

transferred from the Current/Operating Fund to the Capital Fund in order to finance capital projects on a

pay-as-you-go basis. This financing option reduces reliance on debt issuance and provides a financing

mechanism for ongoing capital needs of assets that have a shorter life cycle. The Financial Planning

Division allocates CFC funding for capital projects that satisfy one or more of the following eligibility

criteria:

studies, structure audits and planning related to capital projects; • one year stand -alone state of

good repair projects;

IT projects including equipment and software; and/or


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capital projects to acquire, develop or better capital assets that are not directly owned by the City.

This includes capital projects under certain community development arrangement including BIA

projects, Commercial Façade programs and GO Transit.

allocated to capital projects to offset the City’s debt requirements.

Capital projects funded from CFC must be scheduled for completion within the budget year in which theyare approved.

humber bay parks in the 2016 toronto capital budget

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