2014 Operating Budget Highlights
Solid Waste Management Services (SWMS) provides waste collection, transfer, processing and landfill services to the City of Toronto. Collection includes recyclables, organics, litter and garbage. SWMS' goal is to be a leader in providing innovative efficient waste management to residents, businesses and visitors, creating environmental sustainability, promoting waste diversion and maintaining a clean city.
Table 17
Solid Waste Management 2014 Operating Budget
$Million
Service Gross Net
City Beautification 32.892 31.500
Solid Waste Collection & Transfer 111.068 (156.206)
Solid Waste Processing & Transport 113.524 71.439
Residential Management 90.217 47.069
Solid Waste Education and Enforcement 6.213 6.198
Total Program Budget 353.914 0.000 Approved Positions 1,102.7
The 2014 Base Budget of $353.914 million gross and revenue represents a $3.972 million or 1.1% increase from the SWMS 2013 Operating Budget of $349.943 million gross and revenue and is comprised of the following services:
City Beautification service is $2.992 million net or 10.5% over the 2013 Budget of $28.507
million net.
Base pressures are mainly driven by costs associated with the SWMS re-organization involving Litter Pick-up and Street Litter Bin activities as well as scheduled COLA increases and increased contracted services for parks Bins.
Residual Management service is $4.168 million net or 9.7% over the 2013 Budget of $42.902
million net.
This change predominately arises from the redirection of waste from Green Lane Landfill to 3 alternate landfills in Ontario. These costs were partially offset by absorption of inflationary increases, lower contributions to reserve funds and the lower cost of waste tonnages disposed.
Solid Waste Collection & Transfer service is $26.850 million net or 20.8% over the 2013
Budget of $(129.355) million net and includes an additional $7.142 million in net revenue, reflecting a 5.5% increase in net revenue as compared to the 2013 Budget.
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This is mainly driven by the 3% user fee rate increase for 2014, lower contracted costs for residential collection in Districts 1 & 2 (due to lower volumes) and by savings associated with the SWMS re-organization. These net reductions were partially offset by cost increases for COLA, contracted front-end bulk collection, changes to Provincial funding for recyclables, decreased revenue from yellow bags/ bag tags (volume) and the increased contribution to the Perpetual Care reserve fund.
The 2014 Approved Budget also includes a technical adjustment re-allocating $29.813 million gross and $20.277 million net between Solid Waste Collection & Transfer service and Solid Waste Processing & Transport service.
Solid Waste Education & Enforcement service is $0.964 million net or 18.4% over the 2013
Budget of $5.233 million net.
This change arises from increases for COLA, communications, training and development and by costs associated with the SWMS re-organization partially offset by various user fee revenue allocations to Education and Enforcement.
Solid Waste Processing & Transport service is $18.726 million net or 35.5% over the 2013
Budget of $52.713 million net.
Year over year net savings $1.152 million net or 2.2% in this service result from decreased costs as a result of the line by line review of expenditures, decreased contribution to reserve funds offset by an increase in gross costs for the contracted processing of recyclables and organics and tonnages of residual waste to be processed from recyclables. Service savings have also been partially offset by decreased revenues from the sale of recyclable materials, lower revenue from the Yellow Bag program and lower revenue due to volume adjustments for bin fees.
As noted above, the 2014 Approved Budget includes a technical adjustment re-allocating $29.813 million gross and $20.277 million net from Solid Waste Collection & Transfer service. Approval of the 2014 Base Budget will result in the Program decreasing its total staff
complement by 16 positions, from 1,118.7 to 1,102.7.
Our Service Deliverables for 2014
Solid Waste Management Services has established strategic directions with the following deliverables for 2014:
Develop an Account Manager process
Undertake a Long Term Waste Management Strategy
Conduct facility maintenance review
Start to roll-out the second generation residential green bins to curbside residents with implementation of green bin collection automation
Start Asset Management Programs for closed landfills, buildings and facilities, collection bins, vehicles and equipment
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Refine the multi-rate model with a 10 year outlook based on Council's direction on the Long Term Waste Management Strategy
Continue the corporate user fee review aligning solid waste user fees with corporate policies
Participate in the development of Work Management System (WMS)
Explore potential revenue enhancements and/or new revenues.
Move forward towards 70% overall waste diversion, the 2014 projected diversion rates are estimated as follows:
Overall residential diversion - 55%;
Single-family residential - 68%;
Multi-residential - 30%.
Diversion rates will increase as a result of continuing to implement multi-residential SSO collection including a comprehensive public education campaign; expanding durable goods recovery and commissioning of the Disco SSO facility.
Our Key Challenges
Moving toward 70% waste diversion and balancing this target with program sustainability. This is being addressed through:
Developing a Long Term Waste Management Strategy that will guide future SWMS activities and investment in the City.
Continuation of efforts to fully include multi-residential buildings in the waste diversion plan to help achieve 70% Diversion.
Seeking new sources of revenue and methods of revenue management including hedge funding.
Toronto Water
2014 Operating Budget Highlights
Toronto Water, the largest supplier of municipal drinking water and wastewater treatment in Canada and fifth largest in North America, delivers water treatment and distribution, and wastewater collection and treatment services on demand to 3.4 million residents and businesses in Toronto, and portions of York Region and Peel Region, 24 hours a day, 7 days a week, 365 days a year.
City of Toronto 40 Table 18 Toronto Water 2014 Operating Budget $Million
Service Gross Contribution Capital
Water Treatment & Supply 178.232 310.850
Wastewater Collection & Treatment 203.531 326.686
Stormwater Management 21.600 (19.014)
Total Program Budget 403.363 619.522
Approved Positions 1,734.8
The 2014 Operating Budget for Toronto Water of $403.363 million gross and $1.022 billion in revenue, resulting in $618.522 million in capital-from-current contribution, reflects an increase of 2.2% over the 2013 Budget gross expenditures of $394.633 million and an increase of 13.2% over the 2013 Capital Contribution of $546.164 million and is comprised of the following services:
Water Treatment and Supply service of $178.232 million gross reflects a year over year
increase of $2.892 million or 1.6% over the 2013 Budget gross expenditures. $489.082 million in revenue is generated from this service, resulting in $310.850 million in capital-from-current contribution, an increase of $31.316 million or 11.2% over the 2013 Capital Contribution.
Base pressures are mostly attributable to inflationary increases in salaries and benefits ($1.285 million); inflationary increases for materials and supplies and contracted services ($2.711 million); and increases in operating costs resulting from completed capital projects ($2.338 million).
These pressures were partially offset by savings from a line by line review ($0.530
million) and optimization of water treatment processes ($1.294 million).
The 2014 Operating Budget for the Water Treatment and Supply service includes
funding for a new Water Loss and Leak Detection Program ($0.301 million), funding for new positions for capital planning of future basement flooding projects ($0.060 million), and revenues from a new reporting fee associated with the Backflow Prevention Program ($0.040 million).
Future year incremental costs are attributable to increases in salary and benefits of $1.739 million in 2015 and $0.161 million in 2016, corrosion control costs and costs of materials and supplies for water treatment plants of $2.462 million in 2015 and $4.122 million in 2016, contributions to fleet reserve of $0.250 million in 2015, and legislative requirement costs under Bill 8 of $0.252 million in 2015.
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Wastewater Collection and Treatment service with $203.531 million in gross expenditures
reflects an increase over the 2013 Budget of $5.360 million or 2.7%. This service generates $530.217 million in revenue, resulting in $326.686 million in capital-from-current contribution, an increase of $41.243 million 14.4% over the 2013 Capital Contribution.
Key cost drivers for this service include Inflationary pressures related to salaries and benefits ($1.370 million), Inflationary non-salary cost increases for materials and supplies and contracted services ($2.988 million), Higher operating costs as a result of completed capital projects ($2.281million) and impacts from recent Federal wastewater systems effluent regulations ($1.300 million).
The above pressures were partially offset by line by line review savings ($0.841 million) and optimization of wastewater treatment processes ($2.557 million).
This service includes funding allocated for the new Water Loss and Leak Detection Program ($0.075 million), funding for new positions for capital planning of future basement flooding projects ($0.060 million), and revenues from the new reporting fee associated with the Backflow Prevention Program ($0.066 million).
Future year incremental costs are attributable to increases in salary and benefits of $1.829 million in 2015 and $0.182 million in 2016, corrosion control costs and costs of materials and supplies for wastewater treatment plants of $2.715 million in 2015 and $4.450
million in 2016, contributions to fleet reserve of $0.225 million in 2015, and legislative requirement related costs under Bill 8 of $0.128 million in 2015.
Stormwater Management service with a 2014 Operating Budget of $21.601 million gross
reflects an increase of $0.478 million or 2.3% over the 2013 Budget. Stormwater Management service does not generate any capital-from current contribution as its revenues are not sufficient to cover gross expenditures for this service. $19.014 million in Water Treatment & Supply and Wastewater Collection & Treatment revenues that would otherwise be directed to capital-from- current contributions are required to support the Stormwater Management service operating requirements.
Base pressures for this service are mostly attributable to inflationary increases in salaries and benefits of $0.280 million and various non-salary costs of $0.075 million.
The 2014 Operating Budget for the Stormwater Management service includes funding allocated for the new Water Loss and Leak Detection Program ($0.050 million), funding for new positions for capital planning of future basement flooding projects ($0.080 million), and revenues from the new reporting fee associated with the Backflow Prevention Program ($0.044 million).
Future year incremental costs are attributable to increases in salary and benefits of $0.353 million in 2015 and $0.053 million in 2016, costs increases for materials and supplies of $0.070 million in 2015 and $0.364 million in 2016 and operating impact of completed capital projects of $0.100 million in 2015.
Our Service Deliverables for 2014
The 2014 Recommended Operating Budget of $403.363 million gross will ensure delivery of water and wastewater services for 3.4 million residents and business in Toronto by providing:
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Treatment and supply of 454 billion litres of water (includes York Region);
Collection and treatment of 425 billion litres of wastewater;
Replacement of 5,000 sub-standard water services (approximately 3,900 of which are lead);
Response to and clearing of 10,000 blocked sewer connections;
Cleaning of over 122,000 catch basins; and
Repair of approximately 1,500 broken watermains.
Our Key Challenges
Declining water consumption resulting in lower revenues from water rates needed to support
capital requirements.
Executive Committee considered a report entitled, "Future Options and Public Attitudes for Paying for Water, Wastewater and Stormwater Infrastructure and Services" to aid in developing a financing strategy to support Toronto Water.
Continuously increasing costs from Legislative requirements and compliance with Provincial and Federal regulations; and operating impacts of completed capital projects.
The 2014 Recommended Budget includes funding to meet all regulations as well as to support and maintain completed capital projects.
Toronto Parking Authority
2014 Operating Budget Highlights
The Toronto Parking Authority (TPA) exists to provide safe, attractive, self-sustaining, conveniently located and competitively priced off-street and on-street public parking as an integral component of Toronto's transportation system.
Table 19
Toronto Parking Authority 2014 Operating Budget
$Million
Service Gross Net
Off-Street Parking 64.606 (20.651)
On-Street Parking 11.500 (41.674)
Total Program Budget 76.106 (62.325)
Approved Positions 297.4
The 2014 Operating Budget for the Toronto Parking Authority of $76.106 million gross and $62.320 million in net revenue is comprised of the following services:
The Off-Street Parking service with a 2014 Budget of $64.606 million gross reflects an
increase of $3.785 million or 6.2% over the 2013 Budget gross expenditures of $60.821 million.
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The base changes are mostly attributable to inflationary increases in both salary and non salary costs ($0.618 million); an increase in depreciation cost based on capital asset and equipment additions ($0.640 million); and higher rent costs for parking lots managed on behalf of third parties, as they are determined as a percentage of the income generated from those lots ($1.935 million).
The above pressures were partially offset by savings from a line by line expenditure review ($0.247 million), higher parking revenues ($2.538 million) and revenues from other sources such as advertising and investment income ($0.261 million).
The 2014 Operating Budget for the Off-Street Parking service provides funding for a new cell-phone parking payment technology ($0.090 million) and enhanced security at downtown parking garages ($0.386 million).
Future year incremental costs are mainly attributable to inflationary increases in salaries and benefits ($0.422 in 2015 and $0.410 million in 2016) and inflationary pressures for non-salary costs ($0.935 million in 2015 and $0.909 million in 2016) are anticipated. They will be offset by projected usage/occupancy rate based revenue increases of $1.790 million in 2015 and $1.741 million in 2016.
The On-Street Parking service with a 2014 Budget of $11.500 million gross reflects an
increase of $0.104 million or 0.9% over the 2013 Budget gross expenditures of $11.396 million.
The base changes are attributable to inflationary increases for materials, supplies and contracted services of$0.129 million. This pressure is fully offset by anticipated higher parking revenues of $0.238 million.
The 2014 Operating Budget for the On-Street Parking service allocates funding for a new mobile payment pilot project of $0.393 million.
Future year incremental costs are mainly attributable to inflationary increases in salaries and benefits ($0.050 in 2015 and $0.048 million in 2016) and inflationary pressures for non-salary costs ($0.192 million in 2015 and $0.187 million in 2016) are anticipated. These costs will be offset by revenue increases of $1.117 million in 2015 and $1.086 million in 2016, based on projected usage/occupancy rates.
The 2014 Budget will result in an increase of 1.7 staff positions to the Program's approved staff complement, resulting in a change from 295.7 to 297.4.
In order to maintain the City's revenue share in 2014 at the 2013 levels, the Toronto Parking Authority will provide a one-time revenue contribution to the City in 2014 of $0.638 million.
Our Service Deliverables for 2014
The 2014 Operating Budget for Toronto Parking Authority of $76.106 million gross provides funding for:
On-Street Parking
Managing an estimated 19,000 on-street spaces controlled by over 2,700 highly
successful and profitable pay-and-display environmentally friendly technology based and 650 single spaced meters.
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Continuing to improve customer service by providing alternative payment options and services at lower costs through environmentally friendly technology (solar power) and automation.
Off-Street Parking
Maintaining approximately 22,100 off-street spaces which include: 12 attended lots, 14 fully automated garages, and, 172 unattended lots.
Continuing to operate, on behalf of the Toronto Transit Commission, roughly 13,800 spaces at their park-and-ride facilities and parking lots.
Continuing to manage for the Parks, Forestry and Recreation Program, parking facilities along the waterfront and other areas in the City accounting for an additional 2,175 spaces mostly operated on a seasonal basis.
Our Key Challenges
Maintaining historic profit margins in the face of rising land and development costs.
The 2014 Budget reflects savings of $0.404 million based on a detailed review of operating expenses.
Innovative and efficient expansion of Services by utilizing new technologies.
The 2014 Budget allocates funding for development of a mobile payments pilot project allowing for the use of cell phone/smart phone/tablet based technologies.