REPORT FOR ACTION Intergovernmental Funding in the 2017-2026 Recommended Capital Budget and Plan Date: February 2, 2017 To: Executive Committee From: City Manager and Deputy City Manager & Chief Financial Officer Wards: All SUMMARY This report outlines federal and provincial infrastructure funding programs as identified in the 2017-2026 Recommended Capital Budget and Plan. The City receives funding under the: Provincial Gas Tax (Dedicated Gas Tax for Public Transportation Program); Toronto-TTC-Ontario Streetcar (LRV) Fleet Replacement Program; Federal Gas Tax Fund; Building Canada Fund; Canada 150 Community Infrastructure Program; Federal Public Transit Infrastructure Fund; and Federal Clean Water Wastewater Fund. This report also requests authority to negotiate and execute agreements for projects under intake two of the Canada 150 Community Infrastructure Program. Adjustments to the 2017 Budget Committee Recommended Capital Budget to accommodate these funds are also included. The Government of Canada and the Province of Ontario are expected to contribute $8.4 billion (21%) towards the $39.7 billion 2017-2026 Recommended Tax and Approved Rate Supported Capital Budget and Plan (federal: $4.816 billion; provincial: $3.595 billion). City Council has also identified its priority projects for funding under Phase 2 of the Government of Canada's infrastructure plan. Phase 2 plans to deliver $81 billion nationally from 2017-2028 for public transit, social, green, trade and transportation and rural and northern infrastructure. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 1 of 13
RECOMMENDATIONS The City Manager and Deputy City Manager & Chief Financial Officer recommend that: 1. City Council authorize the Deputy City Manager & Chief Financial Officer to negotiate and enter into any required contribution agreements for projects funded under intake two of the Canada 150 Community Infrastructure Program, identified in Attachment 4, with terms and conditions satisfactory to the Deputy City Manager & Chief Financial Officer and the City Solicitor. 2. City Council adjust the 2017 Budget Committee Recommended Capital Budget as follows to replace funding sources with the Federal Contribution to Eligible Costs for projects listed in Attachment 4 for the following City programs: a. Facilities, Real Estate, Environment & Energy (federal contribution $1,332,000); b. Economic Development & Culture (federal contribution $44,550); c. Parks, Forestry and Recreation (federal contribution $775,733); d. Transportation Services (federal contribution of $499,500). FINANCIAL IMPACT In total, the Government of Canada and the Province of Ontario are expected to contribute $8.4 billion (21%) towards the $39.7 billion 2017-2026 Recommended Tax and Approved Rate Supported Capital Budget and Plan (federal: $4.816 billion; provincial: $3.595 billion). Federal and provincial funding is summarized in Table 1. This includes the recommendations outlined in this report, which seeks budget adjustments to reflect recently approved federal funding under intake two of the Canada 150 Community Infrastructure Program. This will allow the City to recover $2.6 million in costs for delivering 11 capital projects as outlined in Attachment 3. This funding will reduce a combination of City debt and non-debt funding included in the 2017 Budget Committee Recommended Capital Budget. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 2 of 13
Figure 1-2017-2026 Recommended Tax and Approved Rate Capital Budget and Plan, Where the Money Comes From ($39.749 billion) Recoverable Debt, $855, 2% Debt, $6,728, 17% Rate Supported, $13,255, 33% $39.7B Capital from Current, $5,069, 13% Other, $1,324, 3% Development Charges, $1,364, 4% Reserves / Reserve Funds, $2,744, 7% Federal Transfer, $4,816, 12% Provincial Transfer, $3,595, 9% In addition to the funding agreements and programs discussed in detail in this report, the Recommended Budget and Plan identifies intergovernmental funding for projects in Economic Development, Parks, Forestry & Recreation, Toronto Public Library, Sony Centre, Toronto Public Health and other projects in Transportation Services, Facilities Management, Real Estate, Environment & Energy and the Toronto Transit Commission (TTC). The Deputy City Manager & Chief Financial Officer has reviewed this report and agrees with the financial impact information. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 3 of 13
Table 1 - Summary of Intergovernmental Funding in the 2017-2026 Recommended Tax and Approved Rate Capital Budget and Plan ($000s) Program Project Provincial Federal Total Provincial Gas Tax TTC Base Capital Program 752,244 N/A 752,244* Toronto-TTC-Ontario Streetcar Fleet Replacement Federal Gas Tax Fund Building Canada Fund (BCF) TTC Replacement Streetcars (LRVs) 147,439 N/A 147,439 TTC Base Capital Program N/A 1,666,600 1,666,600 Toronto-York Spadina Subway Extension 52,532 83,114 135,646 Union Station Revitalization 24,341 21,065 45,406 Subtotal - BCF 76,873 104,179 181,052 Canada 150 Community Infrastructure Program (CIP 150) Intake 1 - Economic Development, Parks, Forestry & Recreation, and Toronto Public Library Intake 2 - Facilities, Real Estate, Environment & Energy, Economic Development, Parks, Forestry & Recreation, Transportation Services N/A 1,449 1,449 N/A 2,651 2,651 Subtotal - CIP 150 N/A 4,100 4,100 TTC Base Capital Program 0 580,247 580,247 Transportation Services 0 49,712 49,712 Federal Public Transit Infrastructure Fund** (PTIF) Planning & Design for Transit Expansion (Eglinton East LRT, Relief Line, Waterfront Transit) Metrolinx Cost Shared Projects (i.e. Grade Separations) Other (Exhibition Place/Ontario Place, Union Station) 0 31,685 31,685 122,750 42,250 42,250 0 1,230 1,230 Subtotal - PTIF 122,750 705,124 827,874 Federal Clean Water Wastewater Fund (CWWF) Structural Lining of Watermains (Toronto Water) Essroc Quay Lakefilling and Naturalization (Port Lands Flood Protection) 3,759 7,518 11,277 16,250 32,500 48,750 Subtotal - CWWF 20,009 40,018 60,027 Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 4 of 13
Program Project Provincial Federal Total Other Programs Projects in Toronto Public Health, Sony Centre, Facilities, Real Estate, Environment & Energy (other than Union Station), and non-ptif projects in TTC and Transportation. 89,864 500 90,364 Scarborough Subway Extension 1,990,000 660,000 2,650,000 Committed Funding SmartTrack (including PTIF) N/A 417,100 417,100 Eglinton West LRT (including PTIF) N/A 822,900 822,900 Estimated Funding Port Lands Flood Protection 395,000 395,000 790,000 Total (rounded) 3,594,170 4,815,588 8,409,758 * The City receives approximately $166.8 million annually from the Provincial Gas Tax. Of the total annual allocation, $91.6 million is applied to the TTC operating budget with the residual ($75.4 million) applied to TTC capital needs. ** Total federal allocation to Toronto is $856 million. City Council amended the 2016-2025 Capital Budget and Plan (EX20.4) to reflect approx. $105 million in PTIF funding adjustments for 2016. Metrolinx initiated projects which are cost shared with the City of Toronto as per Council direction (i.e. grade separations). Provincial amount reflects their portion of costs and is not a contribution to the City of Toronto. The City is only responsible for a portion of costs. Federal and provincial funding committed, subject to key terms and conditions. Provincial funding for the Scarborough Subway Extension expressed in inflated dollars ($1.48 billion in 2010 dollars). Includes $23.67 million in PTIF contributions. Federal funding committed, subject to key terms and conditions. Provincial investments in regional express rail will support SmartTrack. Intergovernmental funding contributions for SmartTrack and Eglinton West LRT are based on the Class 4/5 cost estimates presented in the initial business cases reported to City Council in July 2016 and were prepared by Metrolinx. Currently, staff are working to further develop the design of the project and refine the estimates. DECISION HISTORY City Council provides the authority to enter into intergovernmental funding agreements and has approved funding for specific projects through the capital budget process. City Council has also authorized staff to negotiate and enter into agreements, as directed, for new intergovernmental funding for priority projects. The full itemized decision history is included in Attachment 5. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 5 of 13
ISSUE BACKGROUND The City's 2017-2026 Recommended Tax Supported Capital Budget and Plan and Approved Rate Supported Capital Budget and Plan identifies $39.7 billion in public investments to infrastructure such as transit and transportation, water and wastewater, and other capital assets. Capital projects are funded from user fees (rates), reserves, development charges, borrowing (debt), and by federal and provincial government transfers. Contributions from the federal and provincial governments account for a total of 21% ($8.410 billion) of the funding outlined in the 10-Year Tax and Rate Capital Budget and Plan (Figure 2). Figure 2-2017-2026 Recommended Capital Budget and Plan* 12.1% 78.9% 9.0% Federal Province City 71.6% ($6.01 billion) of the anticipated provincial and federal investments contained in the Budget and Plan will support the City's existing and future transit network including the Toronto Transit Commission's (TTC) base capital budget and projects such as the Toronto-York Spadina Subway Extension (TYSSE), the Scarborough Subway Extension (SSE), SmartTrack and the Eglinton West LRT. The TTC's base capital program, the TYSSE, and SSE are together anticipated to be 43.3% funded by the City ($4.578 billion), 28.5% by the Government of Ontario ($3.016 billion), and 28.3% by the Government of Canada ($2.990 billion) (Figure 3). Stable, predictable and long-term federal and provincial funding is necessary to invest in state of good repair projects and system expansion can only proceed with contributions from all orders of government. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 6 of 13
Figure 3 - TTC 2017-2026 Recommended Capital Budget and Plan* 28.3% 43.3% Federal Province City 28.5% *Inclusive of TTC's base capital program, TYSSE and SSE. Excludes $91.6 million per year in Provincial Gas Tax which is applied to the TTC operating budget. COMMENTS Current committed intergovernmental funding agreements include the: (1) Provincial Gas Tax, (2) Streetcar (LRV) Fleet Replacement Program, (3) Federal Gas Tax Fund, (4) Building Canada Fund, (5) Canada 150 Community Infrastructure Program, (6) Federal Public Transit Infrastructure Fund, and (7) Federal Clean Water Wastewater Fund. A summary is included in Attachment 1. The City of Toronto has been allocated over $1.0 billion in federal and provincial funding under the Government of Canada's Public Transit Infrastructure Fund (PTIF), Clean Water Wastewater Fund (CWWF), and the Social Infrastructure Fund. The City is in the process of signing agreements and obtaining final approvals under the PTIF and CWWF and intake two of the Canada 150 CIP, and has also received additional federal commitments for public transit. Details on the Social Infrastructure Fund are contained in the Affordable Housing Office and the Shelter, Support and Housing Administration Division 2017 Recommended Operating Budgets. 1. Provincial Gas Tax Introduced in 2004, the Provincial Gas Tax (PGT) currently transfers two cents per litre of provincial gas tax revenues to municipalities to expand and improve their public transit systems. The program was phased in over time, and in 2013 legislation was passed that permanently dedicates a portion of annual provincial gas tax revenues to municipalities for public transportation. Municipal allocations change annually, and are determined using a provincial allocation formula based on transit ridership (70% weighting) and population (30% weighting). Funds are deposited into a dedicated gas tax funds reserve account when received, Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 7 of 13
and revenues must be used to support municipal public transportation expenditures above municipal baseline spending. From 2004-2016, the City has received over $1.7 billion which have been invested in the operating and capital requirements of the TTC. In the 2016-2017 program year (April 1, 2016 to March 31, 2017) the City of Toronto will receive approximately $170.8 million. Funding will be $1.6 million higher than prior program year, with no change to the provincial allocation formula. The increase in funding is a result of the formula which takes into account growing ridership. Priority PGT projects in the 2017-2026 Recommended Capital Budget and Plan include bus overhauls and accessibility improvements through the Easier Access Program (II & III). The full list of planned PGT funded projects is in Attachment 2. On January 27, 2017, the Province of Ontario announced that the program would be enhanced by doubling the municipal share from two cents per litre to four cents per litre. The increase would begin in the 2019-2020 program year and be phased in by 2021-2022 (Table 2). It is expected that the Ministry of Transportation will provide further details on the program enhancement in the coming months. Table 2 - Proposed Provincial Gas Tax Enhancement Program Year Municipal Share (cents/litre) Total Allocation ($ millions, estimated by the Province of Ontario) City Allocation ($ millions, estimated by the Province of Ontario) 2018-2019 2.0 321.0 163.9 2019-2020 2.5 401.3 204.9 2020-2021 3.0 481.5 245.9 2021-2022 4.0 642.0 327.8 2. Toronto-TTC-Ontario Streetcar Fleet Replacement In 2009, the Province of Ontario allocated a maximum of $417 million for the purpose of funding up to one-third of the eligible costs of the TTC streetcar (LRV) fleet replacement project. 204 new streetcars (total project cost of $1.187 billion) will replace the aging fleet and accommodate future growth. The 30th new streetcar entered service on December 30, 2016. The 2017-2026 Recommended Capital Budget and Plan accounts for a total of $147.439 million of provincial funding (not including funding to be carried forward from 2016 into 2017) to be applied against this purchase, recognizing adjustments to account for the delay in delivery from the manufacturer, along with corresponding adjustment to cash flows. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 8 of 13
3. Federal Gas Tax Fund Originally established in 2005 and extended in 2010 and 2014, the federal Gas Tax Fund (GTF) provides Canadian municipalities with $2 billion per year for investment in infrastructure which is allocated on a per capita basis. The GTF is a flexible source of infrastructure funding, allowing municipalities to select local priority projects within eighteen categories of eligible infrastructure. As directed by City Council, Toronto entered into an Administrative Agreement with the Government of Canada, the Province of Ontario and the Association of Municipalities of Ontario (AMO) in 2014 which governs the flow of funds until 2023. From 2005-2015, the City has received over $1.3 billion that has been directed to the TTC to leverage over $3.09 billion of investments in the City's transit system. In 2017, it is estimated that the City will receive approximately $159.8 million in federal Gas Tax funding. The City s allocation is expected to increase to $167.4 million starting in 2018 as a result of indexing. The 2017-2026 Recommended Capital Budget and Plan reflects $1.667 billion in GTF funding to be received over the 10 year period, however actual allocations for 2019-2023 will be based on 2016 Census population data which is not yet available. In the past, the City's GTF allocation has decreased whenever the Census population counts have been updated. This is because of Toronto's shrinking share of the provincial population. Priority GTF projects over the 10-year period includes a continued focus on fleet replacement and state of good repair. The full list of planned GTF funded projects is in Attachment 3. 4. Building Canada Fund Established in 2007, the Building Canada Fund (BCF) provided $8.8 billion for infrastructure from 2008 to 2014. The City received funding for two projects, the Toronto-York Spadina Subway Extension (TYSSE) and the Union Station Revitalization Project. Federal funding under the BCF was also committed for the Sheppard East LRT ($333 million) which is led by the Province through Metrolinx. A. Toronto-York Spadina Subway Extension A BCF contribution agreement for the TYSSE was signed by the City, York Region and Canada in September 2008. The project budget of $3.184 billion cost shared as follows: Federal funding of $697 million (21.9%) provided through an up-front payment of $75 million under the Public Transit Capital Trust and the $622 million commitment through the BCF; Provincial funding was provided at $979 million (30.7%). This included $870 million allocated in 2006 and 2007 via contributions to the Move Ontario Trust and interest income from the Trust; City of Toronto funding of $905 million (28.4%); and York Region funding of $604 million (19.0%). Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 9 of 13
The 2017-2026 Recommended Capital Budget and Plan outlines $135.6 million in remaining federal and provincial funding for the TYSSE. B. Union Station Revitalization Federal and provincial governments committed funding to the Union Station Revitalization project in July 2009. The $800.7 million project is funded by: Government of Canada - $139.5 million which includes up to $133.0 from the BCF and $6.5 million from the Transit-Secure Fund; Via Rail - $24.9 million; Government of Ontario - up to $191.8 million (through Metrolinx); City of Toronto - $442.1 million; and Other Stakeholders - $2.4 million. The Union Station Revitalization project will receive $45.406 million in federal and provincial contributions as part of the 2017-2026 Recommended Capital Budget and Plan to complete the remaining work on the project. 5. Canada 150 Community Infrastructure Program As part of the 2015 federal budget, the Government of Canada announced $150 million over two years for the Canada 150 Community Infrastructure Program (CIP 150). Of this, $44.4 million in CIP 150 funding is allocated to southern Ontario, and is administered by the Federal Economic Development Agency for Southern Ontario (FedDev Ontario). In the 2016 federal budget, the Government of Canada announced intake two of the CIP which doubled the fund (an additional $150 million over two years, with another $44.4 million dedicated to southern Ontario). The CIP 150 provides infrastructure funding for projects that rehabilitate, renovate and expand existing community infrastructure in the lead up to the national celebration of the 150th anniversary of Canadian Confederation in 2017. CIP 150 Intake 1 In total, 18 City projects were successful in their applications resulting in a total federal contribution of $3.5 million. The 2017-2026 Recommended Capital Budget and Plan includes $1.449 million in remaining federal contributions to projects in Economic Development and Culture (EDC), Parks, Forestry and Recreation (PF&R), and Toronto Public Library (TPL). Details outlining these 18 projects are provided within EDC, PF&R and TPL 2016 Capital Budget Analyst Notes. CIP 150 Intake 2 In January 2017, the City was notified about 11 successful applications related to intake two of the Canada 150 Community Infrastructure Fund. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 10 of 13
In total, $2.6 million in federal funding has been committed under intake two for projects within Facilities, Real Estate, Environment & Energy, EDC, PF&R and Transportation Services. It is recommended that the Budget Committee Recommended Capital Budget and Plan be amended to reflect these federal commitments. The CIP will enable the City of Toronto to expedite construction and offset the need for City funding for the 11 capital projects identified in Attachment 4. It is recommended that City Council authorize City officials to negotiate and execute the required legal agreements with the federal government for projects under intake two of the Canada 150 Community Infrastructure Program. 6. Federal Public Transit Infrastructure Fund The PTIF is a $3.4 billion national program that provides ridership based allocations to be used for eligible investments in transit and active transportation. The City of Toronto has been allocated up to $856 million from the PTIF (26% of the national allocation). Federal funding can cover up to 50% of eligible costs, requiring the City to match federal investments on a 1:1 ratio. Ontario has not matched this new federal investment noting existing provincial commitments to transit. Priority projects for the PTIF were confirmed by City Council in December 2016 and as appropriate, are incorporated into the 2017-2026 Recommended Capital Budget and Plan. This includes $580.2 million allocated to the TTC's base capital program for the acquisition of new buses and improvements to state of good repair, as well as $49.7 million allocated to Transportation Services for road safety, cycling infrastructure and surface transit operations. 7. Federal Clean Water Wastewater Fund The CWWF is a $2.0 billion national program that provides funding for up to 50% of eligible costs for capital planning and infrastructure projects related to water, storm water and wastewater. The Province of Ontario will contribute additional funding of up to 25% of eligible costs, leaving municipalities to match the remaining 25%. The Province has allocated CWWF funds to municipalities in Ontario based on local economic conditions and the amount of water, wastewater and storm water assets that are owned. The resulting allocation for the City of Toronto is $60 million (federal - $40 million, provincial - $20 million). In late 2016, City Council authorized the City's two priority projects under the CWWF - the Structural Lining of Watermains and Essroc Quay Lakefilling and Naturalization (a stormwater-related quick start component of Port Lands Flood Protection). Accordingly, $11.27 million from the CWWF is included in the Approved 2017 Rate Supported Capital Budget for Toronto Water while the remaining $48.75 million is included in the 2017-2026 Recommended Capital Budget and Plan for the Waterfront Revitalization Initiative. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 11 of 13
8. Government of Canada Phase 2 Investments In November 2016, the Government of Canada announced details on its second phase of infrastructure investments which will deliver $81 billion nationally through to 2027-28 as follows: Public Transit - $25.3 billion; Social Infrastructure - $21.9 billion; Green Infrastructure - $21.9 billion; Trade and Transportation - $10.1 billion; Rural and Northern Infrastructure - $2.0 billion. In December 2016 City Council confirmed its key priorities for new intergovernmental funding expected in Phase 2 including various transit expansion projects, Port Lands Flood Protection, social and affordable housing, and the rehabilitation of the F.G. Gardiner Expressway. The 2017-2026 Recommended Capital Budget and Plan identified significant new investments ($5.8 billion in gross expenditures) to fund City Council priority projects. Included in the 2017-2026 Recommended Capital Budget and Plan is anticipated funding for Port Lands Flood Protection (federal and provincial governments each contributing 33% of the total costs ($395 million each)) and the federal commitment to SmartTrack (including the Eglinton West LRT) which is assumed to be $1.24 billion. Funding contributions for SmartTrack and Eglinton West LRT are based on the Class 4/5 cost estimates presented in the initial business cases reported to City Council in July 2016 and were prepared by Metrolinx. These estimates are intended for early concept screening and include 50% cost contingencies, but do not yet contain any allowances for financing costs or the transferral of risks under an Alternate Financing and Procurement (AFP) approach. A Class 3 estimate with approximately 30% design is recommended prior to committing to the full capital construction, financing and escalation costs (if any) associated with the project. Staff are working to further develop the design of the project and refine the estimates, including anticipated intergovernmental and third party contributions. Further details on Phase 2 are anticipated to be released as part of the 2017 federal budget, which is expected in the coming months. Conclusion The City s Recommended 2017-2026 Capital Budget and Plan focuses investments in state of good repair while significantly addressing Council priorities for critical but previously unmet needs. Many of these investments are supported by intergovernmental partnerships that are stewarded by the Strategic and Corporate Policy Division, in consultation with key divisions including Financial Planning and Corporate Finance. These partnerships and related intergovernmental funding agreements provide significant capital contributions that help address many of the City s key strategic priorities. Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 12 of 13
CONTACT Fiona Murray, Director, Corporate Intergovernmental & Agency Relations, Strategic & Corporate Policy Division, 416.397.5214, Fiona.Murray@toronto.ca Stephen Conforti, Director, Financial Planning & Budgeting, Financial Planning Division, 416.397.0958, Stephen.Conforti@toronto.ca Robert Hatton, Director, Strategic Initiatives and Intergovernmental Finance, Corporate Finance Division, 416.392.9149, Robert.Hatton@toronto.ca SIGNATURE Roberto Rossini Deputy City Manager & Chief Financial Officer Peter Wallace City Manager ATTACHMENTS Attachment 1 Intergovernmental Program Summary Attachment 2 Provincial Gas Tax Funding for TTC's 2017-2026 Recommended Capital Budget and Plan Attachment 3 Federal Gas Tax Funding for TTC's 2017-2026 Recommended Capital Budget and Plan Attachment 4 Capital Projects Supported by Intake Two of the Canada 150 Community Infrastructure Program Attachment 5 City Council Decision History Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 13 of 13
ATTACHMENT 1 INTERGOVERNMENTAL PROGRAM SUMMARY Table 1 - Intergovernmental Program Summary Program & Government Inception Type Status Total Program Allocation ($000s) City of Toronto Allocation 1.Provincial Gas Tax 2004 Annual Funding Formula Based Allocation - 70% Ridership/30% Per Capita Ongoing - agreement stage. (annual agreements) 334,500 (2017) 170,818 (2017) 1,752,900 (2004-2016) 2. Toronto- TTC-Ontario- Streetcar Fleet Replacement 2009 Project Based Contribution Agreement Ongoing -Agreement executed in 2013 N/A 417,000 3. Federal Gas Tax Fund 2005 Annual Funding Formula Based Allocation - 100% Per Capita Ongoing - Agreement executed in 2014 2,100,000 (2017) 159,811 (2017) 1,330,820 (2005-2016) 4A. Building Canada Fund - Union Station 2007 Project Based Contribution Agreement Ongoing - Agreement executed in 2009 Federal: 8,800,000 All programs Federal: 139,500 Provincial: 191,800 Attachment 1 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 1 of 2
Program & Government Inception Type Status Total Program Allocation ($000s) City of Toronto Allocation 4B. Building Canada Fund - TYSSE 2007 Project Based Contribution Agreement Ongoing - Agreement executed in 2008 Federal: 8,800,000 All programs Federal: 697,000 Provincial: 974,000 5.Canada 150 Community Infrastructure Program 2015 and 2016 Project Based Contribution Agreements Ongoing - Intake one agreements executed in 2016. Intake 2 - Agreement stage. Both intakes: 300,000 (88,800 for Southern Ontario) Both intakes: 6,100 6. Federal Public Transit Infrastructure Fund 2016 Contribution Agreement Formula Based Allocation - 100% Ridership Approvals stage 3,400,000 856,000 7. Federal Clean Water Wastewater Fund 2016 Contribution Agreement Formula Based Allocation - based on the amount of Water, Wastewater and Stormwater assets owned by the City and on local economic conditions Approvals stage Federal funding: 2,000,000 (570,000 for Ontario) Provincial matching funding: 270,000 Federal: 40,000 Provincial: 20,000 8. Government of Canada Phase 2 Investments 2017 To be announced To be announced Transit - 25,300,000 Social - 21,900,000 Green - 21,900,000 Trade/Transportation - 10,100,000 Rural/Northern - 2,000,000 To be announced One-third funding committed for SmartTrack (including Eglinton West LRT) Attachment 1 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 2 of 2
ATTACHMENT 2 PROVINCIAL GAS TAX FUNDING FOR TTC'S 2017-2026 RECOMMENDED CAPITAL BUDGET AND PLAN Table 1 - Provincial Gas Tax Funding for TTC's 2017-2026 Recommended Capital Budget and Plan Project ($000s) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Bridges and Tunnels - Various - - 9,940 14,502 - - - - - - 24,442 Communications - Various 19,463 23,924 - - - - - - - - 43,387 Easier Access II & III 28,515 36,389 23,300 31,118 44,311 50,416 20,235 19,801 9,800-263,884 On-Grade Paving Rehab - - 10,621 - - - - - - - 10,621 Other Bldgs & Structures Projects Power Dist./Electric Systems - Various Subway Car Overhaul Program 11,619 - - - - - - - - 2,500 14,119 4,755 - - - - - - - - - 4,755 - - - - - - - - 16,863 11,856 28,719 Subway Track - - - - 1,300 10,050 - - - - 11,350 Surface Track - - - - - - - 5,000 - - 5,004 Traction Power - Various 10,873 14,911 13,900 - - - - 5,500 13,091-58,275 Attachment 2 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 1 of 2
Project ($000s) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Bus Overhaul Program - - 17,463 29,605 29,613 14,759 54,989 44,923 35,471 60,868 287,688 Grand Total 75,225 75,224 75,224 75,224 75,224 75,224 75,224 75,224 75,224 75,224 752,244 Note: The list of projects funded by Provincial Gas Tax is subject to change. Chart excludes $91.6 million of the annual allocation from the Provincial Gas Tax as it is applied to the TTC operating budget Attachment 2 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 2 of 2
ATTACHMENT 3 FEDERAL GAS TAX FUNDING FOR TTC'S 2017-2026 RECOMMENDED CAPITAL BUDGET AND PLAN Table 1 - Federal Gas Tax Funding for TTC's 2017-2026 Recommended Capital Budget and Plan Project ($000s) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Subway Track - - - - 18,000 17,231 32,247 32,542 20,837 24,456 145,313 Surface Track - - - 4,047 18,000 26,655 27,472 16,954 17,822 25,323 136,273 Traction Power - - - - 6,000 12,500 10,252 6,384 2,343 16,089 53,568 Power Dist./Electric Systems Communications - Various Signal Systems - Various - - - - 2,725 5,491 2,617 3,147 2,746 3,066 19,792 - - - - 2,726 7,400 3,302 2,934 2,943 4,450 23,755 - - - - - - 1,644 1,585 1,050 1,094 5,373 Finishes - Various - - - - - 20,000 4,360 3,536 3,061 3,730 34,687 Equipment - Various - - - 7,529 2,999 6,522 4,815 4,469 4,345 6,446 37,125 On-Grade Paving Rehabilitation Bridges and Tunnels - Various Fire Ventilation Upgrade - - - 7,018 7,403 7,546 4,800 4,872 4,945 5,019 41,603 - - - 14,710 15,480 28,450 21,019 21,862 26,576 37,509 165,606 5,459 - - - - - - - - - 5,459 Attachment 3 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 1 of 3
Project ($000s) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Easier Access II & III - - - 30,533 29,796 15,546 22,666 23,581 17,367-139,489 Replacement of Wheel- Trans Vehicles - - - - - 1,528 5,564 5,842 6,134 6,441 25,509 Subway Car Purchases 12,622 3,055 - - - - - - - - 15,677 Streetcar Overhaul Program Subway Car Overhaul Program Rail Non-Revenue Vehicle Overhaul Purchase of Rail Non- Revenue Vehicle Environmental Programs IT System- Infrastructure Other Buildings & Structures Replace 40' Diesel Buses Bus Heavy Rebuild Program - Overhaul Purchase of Legacy LRVs - - - - 260 169 631 943 2,479 4,741 9,223 - - - 6,975 6,198 4,525 7,370 9,392 7,516 10,358 52,334 - - - - 1,819 718 - - - 228 2,765 - - - - 3,838 1,922 - - - - 5,760 - - - - 6,978 1,790-2,000 1,640 1,680 14,088 7,562 - - - - - - - - - 7,562 41,818 12,330 46,505-16,679 9,428 4,964 4,059 6,468 4,366 146,617 - - - 60,339 - - - - - - 60,339 - - - - - - - 19,012 5,315-24,327 79,545 152,036 108,180 - - - - - - - 339,761 ATC Resignalling - - - - - - 13,698 4,307 33,834 12,425 64,264 Attachment 3 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 2 of 3
Project ($000s) 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Total Leslie Barns Streetcar Maintenance.& Storage Facility Toronto Rocket Yard & Storage Track Accommodation McNicoll Bus Garage Facility 8,664 - - - - - - - - - 8,664 - - 12,736 36,270 17,474 - - - - - 66,480 4,141 - - - 11,046 - - - - - 15,187 Grand Total 159,811 167,421 167,421 167,421 167,421 167,421 167,421 167,421 167,421 167,421 1,666,600 Note: The list of projects funded by federal Gas Tax Fund is subject to change. Attachment 3 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 3 of 3
ATTACHMENT 4 CAPITAL PROJECTS SUPPORTED BY INTAKE TWO OF THE CANADA 150 COMMUNITY INFRASTRUCTURE PROGRAM Table 1 - Capital Projects Supported by intake two of the Canada 150 Community Infrastructure Program Project Total Eligible Cost ($) Federal Contribution ($) City Contribution ($) Facilities, Real Estate, Environment & Energy Improvement of Agincourt Recreation Centre 2,000,000 666,000 1,334,000 Improvement of Etobicoke Olympium 2,000,000 666,000 1,334,000 Sub-Total 4,000,000 1,332,000 2,668,000 Economic Development & Culture Improvement of Neilson Park Creative Centre Lighting System 135,000 44,550 90,450 Parks, Forestry & Recreation Renovation of Westlake Park Playground 150,000 50,000 100,000 Renovation of Woodborough Park Playground 150,000 50,000 100,000 Rehabilitation of Giovanni Caboto Pool 1,142,200 380,733 761,467 Renovation of Dalrymple Park Playground 150,000 50,000 100,000 Renovation of Cataraqui Park Playground 150,000 50,000 100,000 Attachment 4 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 1 of 2
Project Total Eligible Cost ($) Federal Contribution ($) City Contribution ($) Improvement of Coleman Park 435,000 145,000 290,000 Renovation of Brooks Road Park Playground 150,000 50,000 100,000 Sub-Total 2,327,200 775,733 1,551,467 Transportation Services Cycling Infrastructure - Pan Am Path (Trail Expansion) 1,500,000 499,500 1,000,500 Grand Total 7,962,200 2,651,783 5,310,417 Attachment 4 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 2 of 2
ATTACHMENT 5 CITY COUNCIL DECISION HISTORY Provincial Gas Tax On March 27, 2006, City Council's Policy and Finance Committee authorized the execution of the standard annual Letter of Agreement with the Province for funding under the Dedicated Gas Tax Funds for Public Transportation Program for 2005-2006 and each subsequent year, as necessary. http://www.toronto.ca/legdocs/2006/minutes/committees/pof/pof060327.pdf Streetcar Fleet Replacement On July 11, 2012, City Council authorized entry into a funding agreement with the Province to receive funding to the maximum of $417 million to finance up to one-third of the cost of the purchase of light rail vehicles. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2012.cc25.2 Federal Gas Tax On January 29, 2014, City Council authorized the execution of the 2014-2023 Administrative Agreement on the Federal Gas Tax Fund and directed that planned eligible projects be reported on annually through the capital budget process. http://www.toronto.ca/legdocs/mmis/2014/ex/bgrd/backgroundfile-66216.pdf Building Canada Fund On June 13, 2016, the Government Management Committee received item GM13.24, Union Station Revitalization Project - Status Update, which included an update on the construction progress and project budget. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.gm13.24 On August 5, 2009, City Council authorized the Union Station Revitalization Project, and confirmation of federal and provincial funding commitments. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2009.ex33.44 On June 23, 2008, City Council authorized negotiation of a Building Canada Fund Contribution Agreement relating to the Toronto-York Spadina Subway Extension with the Government of Canada. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2008.ex21.8 Canada 150 Community Infrastructure Fund On February 17, 2016, City Council approved the 2016 Capital and Operating Budgets and also authorized the Deputy City Manager & Chief Financial Officer to negotiate and enter into any required contribution agreements for the Canada 150 Community Infrastructure Program for projects identified in the report from the Deputy City Manager & Chief Financial Officer. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.ex12.2 http://www.toronto.ca/legdocs/mmis/2016/ex/bgrd/backgroundfile-90224.pdf Attachment 5 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 1 of 2
Transit Funding On November 8, 2016, City Council approved a funding and financing strategy for the City's share of costs for key transit initiatives that comprise Toronto's 2031 transit network plan including SmartTrack. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.ex19.1 On July 12, 2016, City Council considered EX16.1 Developing Toronto's Transit Network Plan to 2031, including updates on several priority projects such as Scarborough Subway Extension, SmartTrack, Eglinton West LRT, Relief Line, and the Eglinton East LRT. City Council also requested the Province of Ontario to confirm the timing for delivering the approved Sheppard East LRT extension, with committed funding under the Building Canada Fund and the Toronto-Metrolinx Light Rail Transit Master Agreement. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.ex16.1 On October 8, 2013, City Council authorized the City Manager to negotiate a contribution agreement with the federal government for up to $660 million towards the cost of constructing the Scarborough Subway Extension project. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2013.cc39.5 Federal Public Transit Infrastructure Fund On December 13, 2016, City Council confirmed priority projects for the Federal Public Transit Infrastructure Fund (PTIF), authorized the Mayor and City Manager to negotiate and enter into PTIF and Federal Clean Water Wastewater Fund agreements, and confirmed priorities and authorized the Mayor and City Manager to negotiate and enter into agreements for Phase 2 of the Government of Canada's infrastructure plan. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.ex20.4 Federal Clean Water Wastewater Fund On November 8, 2016, City Council approved the Essroc Quay Lakefilling and Naturalization project under the Federal Clean Water Wastewater Fund, and directed the Mayor and staff to pursue federal and provincial funding for the Port Lands Flood Protection Project. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.ex18.3 On December 13, 2016, City Council approved the 2017 Rate Supported Budget for Toronto Water which includes the Structural Lining of Watermains project to be funded under the Federal Clean Water Wastewater Fund. http://app.toronto.ca/tmmis/viewagendaitemhistory.do?item=2016.ex20.22 Attachment 5 - Intergovernmental Funding in the 2017-2026 Capital Budget & Plan Page 2 of 2