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Presentation on EX20.1, EX20.2, and EX20.3
(LTFD Update, Revenue Strategy, and Asset
Optimization Reports)
Executive Committee December 1, 2016
Outline
Long-Term Financial
Direction Update
Core Challenges
Longer-Term
Options
Asset Optimization
Toronto Hydro
Corporation and
Toronto Parking
Authority Recommendations
Consistency between
short-term decision
making and long-term
aspirations
Best estimations
available given the
considerable
uncertainties
Maintaining or
enhancing the fiscal
resilience of the City
of Toronto and its
agencies in order to
support sustainable
public services
2017 pressure
after savings and
2016 MLTT growth
Asset
Optimization
Direct impact on
short- and long-term
10-Year
Capital
Budget and
Plan
Long-Term
Expense
Management
Including
incremental costs of
SmartTrack, TTC,
Gardiner, Portlands
Continued focus
on value-for-money
Long-Term
Capital
Overhang
~$33B in
unfunded capital
projects, and growing
Long-Term
Revenue
Management
Range of options
Progress
Public consultations
Phase 1: November and December
Guiding Principles, and Expenditure,
Revenue, and Asset Options
Phase 2: Winter / Spring 2017
Governance and Financial Management
Revenue Framework
Authorized under Existing
Legislation
Revenue Options
Requiring Major
Provincial Policy Change
Property Tax
Municipal Land Transfer Tax
(match Provincial policies)
Parking Levy
B. Specialty Taxes
C. User Fees
Graduated residential
property tax rates
Parking Sales Tax
Hotel Tax
Municipal Income Tax
Municipal Sales Tax
None
Prohibited Taxes
Prohibited taxes
under the City of
Toronto Act,
2006
Aspirational
Important congestion
management tool
Opportunity for significant and
new investment
Fairness in pricing public assets
Revenue Options
Revenue Options
Assumed
rates
Incidence /
Fairness
Efficiency
High
Medium
Low
Revenue
Quality
Legislative
Authority
Scores
Minimizing
Negative
Policy Fit
Economic
Impacts
Match provincial
rules (rates &
FTHB rebate)
Parking Levy
$6.75/m2 to
$20.25/m2/year
Property Tax
Specialty Taxes
Permitted under Current Legislative Authority (COTA)
Motor Vehicle Registration Tax
$120/year
1% 10%
1% - 10%
Tobacco Tax
1% 10%
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Assumed
rates
Incidence /
Fairness
Efficiency
Scores
Minimizing
Negative
Policy Fit
Economic
Impacts
Revenue
Quality
Legislative
Authority
Specialty Taxes
Requiring Major Provincial Policy Change
Development Levy
2% 10%
Hotel Tax
2% 14%
5 % 20%
0.5% 2%
1%
0.5% 2%
TBD
TBD
Carbon Tax
TBD
Fees
Expressway Tolls
TBD
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Expressway Tolling
Study on benefits and impacts currently
underway; further assessment expected
in staff report to Executive Committee
in 2017
Recovers costs from non-residents who
make up about 40% of expressway trips,
therefore expands Citys tax base
Could reduce travel times and increase
public transit usage
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Notes
$100-150 million
Incident management
Notes
Break-even scenario
Under $2.00
$166 million
$3.90
$272 million
$5.20
$336 million
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Asset Optimization
Asset Optimization
Deloitte retained to undertake analysis
of the City's investments, and to
recommend viable options for the citys
consideration
Toronto Hydro Corporation
Toronto Parking Authority
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Asset Optimization
Study found that on balance ownership retention (vs. equity sale to raise
capital funding) provides highest value for City
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Asset Optimization
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Thank you
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Appendix
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2016/17 outlook
2015/16
2014/15
2013/14
2012/13
2011/12
2010/11
2009/10
2008/09
-17%
2007/08
2006/07
2005/06
2004/05
2003/04
2002/03
2001/02
2000/01
-38%
1999/00
-4%
-13% -12% -8%
1998/99
1997/98
1996/97
1995/96
1994/95
1993/94
-20%
1992/93
0%
1991/92
-22%
1990/91
1989/90
1988/89
1987/88
80%
1986/87
1985/86
1984/85
1883/84
1982/83
-40%
1981/82
1980/81
72%
60%
40%
20%
-26%
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