Toronto City Councillor
Ward 25 Don Valley West

 Council Highlights are provided as a service to residents of Ward 25.  The following summarizes selected items of the City Council meeting of November 30, December 1, 4, and 7, 2009, the City Council meeting on Election Administration held on December 2, 2009 and the Special City Council meeting on the Capital Budget held on December 8, 2009.

Special Council Meetings:

1.  Election Finance Reform

You can read my previous summary of this meeting online at: www.cliffjenkins.com/council/2009-12-02.html

2.  2010 Capital Budget and 10-year capital plan (EX38.1)

Council voted to ramp-up infrastructure spending very aggressively – from $1.6 billion in 2009 to $2.4 billion for 2010 and about $2.5 billion budgeted for each of 2011 and 2012.  Much of this new funding will go to TTC infrastructure – and will be financed largely by debt. 

In order for the City not to violate its policy of restraining debt service charges below 15% of the Operating Budget, Council has adopted new and somewhat unusual tactics.  First, Council voted to liquidate a City asset - the $600 million principal of the Toronto Hydro promissory note - and pay down existing 10-year debentured debt.  Second, new 30-year debentures will be issued for the new infrastructure – thus spreading repayment over a longer term and keeping the annual debt service charges under the 15% ceiling.  However, the total interest paid will be much higher over the 30 years than over 10 years.  While this new longer-term debt strategy appeals to some, many others will recognize it as simply “re-mortgaging the house to a longer term”.  

Lastly, in answer to my questions (in the 5-minutes permitted to each Councillor), Finance staff confirmed that:

(i) pet projects, newly introduced in 2009, such as the $6.35 million Jarvis streetscape improvements have rocketed past other longstanding worthy projects (such as the long-awaited Lawrence Park road/sewer improvements) and advanced into the 2010 capital budget;

(ii) net proceeds from real estate and other asset sales will simply be deposited into reserve fund accounts – and hence become silently available for future spending. In my view, this continuation of the “burn the furniture to keep the house warm” strategy is irresponsibly unsustainable; and,

(iii) the City’s ultra-low development charge policy will once again result in at least $50 million/year in forgone revenues to the Capital Budget – to be replaced by immediately higher taxes and debt, which of course means even higher taxes in the future. 

For all of the above-mentioned reasons, I did not support the 2010 Capital Budget Plan.  However, I invite you to visit http://www.toronto.ca/budget2010 to view the budget summary (prepared by the City’s Communications Dept.) and form your own opinion on how the City is spending your capital dollars.  As always, I welcome your comments and opinions.

Regular Council Meeting

3. Sustainable Energy Strategy (EX36.9)

Council adopted a comprehensive energy strategy for Toronto called The Power to Live Green, which follows through on the City’s climate change action plan of 2007 (Change Is in the Air).  The Power to Live Green strategy is based on conservation, renewable energy and smart energy distribution to achieve progressive targets for greenhouse gas emission reductions and improved air quality.  The strategy involves a four-track process that consists of meeting the energy requirements of businesses and homes; reducing dependence on fossil fuels; investing in green technology and supporting the creation of green jobs and the global marketing of sustainable energy goods and services; and partnering with industry, businesses, institutions, non-profits, other governments, utilities and residents.

4. New Sign By-law (PG33.10)

Council approved a new strategy to regulate outdoor signs in Toronto.  The strategy includes a consolidated Sign Bylaw that replaces the current sign bylaws in effect across the city; a tax on third-party signs which is expected to raise about $10 million annually; and administrative changes to improve the City’s ability to regulate signs and enforce the regulations.  This approach to sign regulation reflects the City’s goals and objectives for improving what people see in the public realm.

5. Girl’s Hockey (CC42.1)

Council had two clear options on dealing with the issue of fairness in allocating ice time at City arenas – first, to impose centrally controlled solutions at each arena or alternatively, to permit all interested parties to have their views heard, including possible consensus solutions, at the Community Development and Recreation Committee.  While I supported the efforts of Councillors Karen Stintz, John Parker and others to adopt the second, consultative approach, Council opted for the first approach, directing the arenas’ boards of management to prepare 2010-11 ice time allocations and forward them to the General Manager, Parks, Forestry and Recreation for consideration.

In any case, it remains very important to address the shortage of community ice facilities and I will continue to support initiatives to provide new ice facilities in this under-served area - most particularly a new facility to replace the Don Mills Civitan Arena.

6. Solid Waste Rates (EX36.26)

Council approved a capital and operating budget for Solid Waste Management Services that will use money saved during the 2009 labour disruption to freeze the green bin user fees for 2010, as per previous Council Highlights.

7. Water and Wastewater Service Rate (EX36.24)

Council approved the sixth consecutive 9% annual increase in water rates.  Compounded since 2003, it amounts to total increase of about 68%.  Finance Department staff disclosed, in answer to my question, that the City’s ultra-low development charge policy will once again result in at least $9 million in forgone revenue to Toronto Water.  Water users thus will once again in 2010 pay a 1%- 2% higher water rate than would otherwise be required.

8. Next step for Union Stations revitalization (EX36.32)
Council authorized the City’s chief corporate officer to award contracts to proceed with work to revitalize Union Station, and approved the selection of Vanbots as general contractor and construction manager for the project.

9. Preserving the Canada Malting silos (EX36.6)

Council approved a plan to preserve the Canada Malting silos on Toronto’s waterfront.  Site improvements will provide safe waterfront access to Ireland Park.  The second phase of the project will entail creating a master plan for selling a portion of the site for private development and using funds generated by the development to pay for parkland improvements to the site and for the stabilization of the historic silos.