Humber Bay Parks in the Toronto 2016 Capital Budget

(Published December 14, 2015)

Introduction: What is the Budget

The Citys 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 Citys 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 Citys services, programs and infrastructure and
approve the Citys final budget.
Operating vs. Capital whats 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 Citys 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.

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 Citys
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.

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 Recreation
Centre 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 5year 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 of
SOGRwork 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.

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

Appendix 3: 2016 Capital Budget; 2017 to 2025 Capital Plan
Parks, Forestry & Recreation
PKS000016Outdoor Recreation Centres
Humber Bay East New Pavilion S37/S45
Ward 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 $1,500,000
Total Financing: $7,000,000

Gross Expenditures ($000s) [p. 52 of pdf]

Appendix 3: 2016 Capital Budget; 2017 to 2025 Capital Plan
Parks, Forestry & Recreation
PKS000017--Park Development
Humber Bay Parkland-Parks Revitalization S42
Ward 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

Gross Expenditures ($000s) [p. 67 of pdf]

Appendix 4: 2016 Cash Flow and Future Year Commitments
Parks, Forestry & Recreation
PKS000016Outdoor Recreation Centres
Humber Bay East New Pavilion S37/S45
Ward 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 $4,950,000
Reserve Funds $550,000
Other 1 1,500,000
Total Financing $7,000,000

Park Allocation Funds Collected, 2011-2014

Gross Expenditures ($000s) [p. 71 of pdf]

Appendix 4: 2016 Cash Flow and Future Year Commitments
Parks, Forestry & Recreation
PKS000017--Park Development
Humber Bay Parkland-Parks Revitalization S42
Ward 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

Project Financing [p. 85 of pdf]

Appendix 5: 2016 Capital Budget with Financing Detail
Parks, Forestry & Recreation
PKS000016Outdoor Recreation Centres
Humber Bay East New Pavilion S37/S45
Ward 6, Stat. S4, Cat. 04.
Priority: 6
Project #: 346
Start Date: 02/10/2016
Completion Date: 12/31/2018
2016 Cash Flow $540,000
Financing:
Development Charges $486,000
Reserve Funds $54,000
Project Financing [p. 87 of pdf]
Appendix 5: 2016 Capital Budget with Financing Detail
Parks, Forestry & Recreation
PKS000017--Park Development
Humber Bay Parkland-Parks Revitalization S42
Ward 6, Stat. S4, Cat. 04.
Priority: 0
Project #: 760
Start Date: 01/03/2015
Completion Date: 12/03/2015
2016 Cash Flow $475,000
Financing:
Other 1 $475,000

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
Gross Expenditures ($000s) [p. 58 of pdf]
Appendix 3: 2016 Capital Budget; 2017 to 2025 Capital Plan
Parks, Forestry & Recreation
PKS000022Trails & Pathways
Humber Bay Shores Park Construction - PF&R/Transp
Ward 6, Stat. S2, Cat. 04.
Priority: 0
Project #: 253
Current and Future Year Cash Flow Commitments
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
Current and Future Year Cash Flow Commitments Financed By
Reserve Funds $125,000
Other 1 $125,000
Total Financing $250,000

Gross Expenditures ($000s) [p. 58 of pdf]

Appendix 3: 2016 Capital Budget; 2017 to 2025 Capital Plan
Parks, Forestry & Recreation
PKS000022Trails & Pathways
Humber Bay ShoresAdditional Funds
Ward 6, Stat. S3, Cat. 04.
Priority: 4
Project #: 272
Current and Future Year Cash Flow Commitments
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
Current and Future Year Cash Flow Commitments Financed By
Development Charges $630,000
Reserve Funds $370,000
Total Financing $1,000,000

Gross Expenditures ($000s) [p. 76 of pdf]

Appendix 4: 2016 Cash Flow and Future Year Commitments
Parks, Forestry & Recreation
PKS000022Trails & Pathways
Humber Bay Shores Park Construction - PF&R/Transp
Ward 6, Stat. S2, Cat. 04.
Priority: 0
Project #: 253
Current and Future Year Cash Flow Commitments
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
Current and Future Year Cash Flow Commitments Financed By
Reserve Funds $125,000
Other 1 $125,000
Total Financing $250,000

Gross Expenditures ($000s) [p. 76 of pdf]

Appendix 3: 2016 Cash Flow and Future Year Commitments
Parks, Forestry & Recreation
PKS000022Trails & Pathways
Humber Bay ShoresAdditional Funds
Ward 6, Stat. S3, Cat. 04.
Priority: 4
Project #: 272
Current and Future Year Cash Flow Commitments
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
Current and Future Year Cash Flow Commitments Financed By
Development Charges $630,000
Reserve Funds $370,000
Total Financing $1,000,000

Project Financing [p. 91 of pdf]

Appendix 5: 2016 Capital Budget with Financing Detail
Parks, Forestry & Recreation
PKS000022Trails & Pathways
Humber Bay Shores Park Construction - PF&R/Transp
Ward 6, Stat. S2, Cat. 04.
Priority: 0
Project #: 253
Start Date: 05/06/2015
Completion Date: 12/06/2015
2016 Cash Flow $250,000
Financing:
Reserve Funds $125,000
Other 1 $125,000

Project Financing [p. 92 of pdf]

Appendix 5: 2016 Capital Budget with Financing Detail
Parks, Forestry & Recreation
PKS000022Trails & Pathways
Humber Bay ShoresAdditional Funds
Ward 6, Stat. S3, Cat. 04.
Priority: 4
Project #: 272
Start Date: 02/10/2016
Completion Date: 12/31/2016
2016 Cash Flow $1,000,000
Financing:
Development Charges $630,000
Reserve Funds $370,000
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 Carry
Forward Funding
2016 Capital Budget
Additional 2015 and 2014 and Prior Year CarryForward Requests
PKS000017-760: Humber Bay ParklandParks 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)

(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
Actual Expenditure: $35,540
Unspent: $17,680
Carry-Forward Funding Already Included in 2016 Budget Request: $0
Carry-Forward Funding/Additional (in $)
(Incremental) 2015 Carry-Forward Funding: $0
(Incremental) 2014 Carry-Forward Funding: $17,680
Carry-Forward Funding to 2016 Budget
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
Actual Expenditure: $591,618
Unspent: ($41,618)
Carry-Forward Funding Already Included in 2016 Budget Request: $250,000
Carry-Forward Funding/Additional (in $)
(Incremental) 2015 Carry-Forward Funding: ($250,000)
(Incremental) 2014 Carry-Forward Funding: $0
Carry-Forward Funding to 2016 Budget
Total Carry-Forward Funding: % of 2015 App. Plan: 0

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 project
require 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 10year 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 Citys carry forward
policy stipulates that unspent cash flow funding for capital projects/sub-projects may only be carried

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 Citys 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

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 Faade programs and GO Transit.
allocated to capital projects to offset the Citys debt requirements.

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