AlvinofDiaspar
Moderator
Progress slow in saving city money
Mayor David Miller and his 44 councillors come face to face with the fallout from the crumbling economy today when this year's city budget is unveiled.But panel appointed to address financial problems says there have been steps forward
Feb 10, 2009 04:30 AM
Paul Moloney
CITY HALL BUREAU
It was launched with great fanfare on a cold February morning. A large room was reserved at the Royal York. At the front were five of six prominent citizens chosen by Mayor David Miller to pore through the books and offer their answer to the city's perennial money woes.
Months earlier, just four days before a crucial vote to impose new taxes and to fend off his critics, Miller reluctantly appointed a blue-ribbon panel:
Rahul Bhardwaj, president and chief executive officer of the Toronto Community Foundation; Canadian Auto Workers economist Jim Stanford; Larry Tanenbaum of Maple Leaf Sports and Entertainment; Blake Hutcheson, a commercial real estate expert; York University president Dr. Lorna Marsden and Paul Massara, president of a private equity business.
The panellists met for hundreds of hours with politicians and city officials. Finally they issued their analysis of how the city could save money. Now, nearly a year later what has been done?
Well, progress has been slow.
The panel acknowledged the province should stop burdening the city with sharing the costs of welfare and other programs, and a timetable for Queen's Park to eventually take back responsibility will begin next year.
But the panel also said there are things Toronto can do to solve the financial bind that has plagued it since amalgamation in 1998.
Be bold, the panel advised Miller. Look at selling Toronto Hydro, Toronto Parking Authority, Enwave, the Gardiner Expressway and Don Valley Parkway. That would pay off the city's debt.
"We pay more to service our debt than we pay to run the fire department," said Councillor Karen Stintz. But Miller said this week that Toronto Hydro provides a steady annual income for the city – about $50 million.
The fiscal review panel said the city could take in $150 million a year from underutilized real estate, and the mayor says the 262-space parking lot at Yonge St. and York Mills Rd. is a prime site for development. "Perhaps the parking authority doesn't need all of its parking lots," Miller said.
Still with little progress, some panel members say they're happy with the progress to date. Setting up Build Toronto marked an important break from the past, said Stanford.
"This is an agency explicitly with the mandate to identify underutilized assets, including land and buildings, and then try and get more value from them. I stress that that doesn't mean selling them. It usually means developing them."
The panel met late last month with Miller, said Bhardwaj. "I'm comfortable that the spirit of the report is being honoured," he said. "We see progress being made."
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EFFORTS TO END TORONTO'S FINANCIAL WOES
ECONOMIC DEVELOPMENT
Recommendation: Appoint an economic development senior officer to focus on regional economic growth.
Action: Nick Lewis, formerly managing director of RBC capital markets, was hired last year.
MAKE THE SMALL THINGS COUNT
Recommendation: Set up a Catch the Little Things Program that would review some of the smaller savings that together are significant.
Action: Councillor Karen Stintz has asked for an update. Stintz's motion was referred to the executive committee, chaired by the mayor. No word yet.
STREAMLINE DEPARTMENTS
Recommendation: The panel wants to see a review of the 119 city agencies that consume a third of the city's budget. Agencies include arena boards, business improvement areas and large institutions such as the TTC and the Toronto Public Library. It's believed that streamlining IT, human resources and payroll departments could save money.
Action: No review yet.
CUT THE DEBT
Recommendation: Reduce the city's $2.6 billion debt and, in turn, lower the $440 million paid out in interest each year. Panel said the city should look at monetizing Toronto Hydro, or selling assets such as the Toronto Parking Authority, Enwave, the Gardiner Expressway and Don Valley Parkway. Together they are worth $3.5 billion.
Action: Miller has announced $75 million from the sale of Toronto Hydro Telecom will go to repair affordable housing.
MONEY FROM PROPERTY
Recommendation: Use the city's massive real estate holdings to generate more income. The panel strongly urged the city to set up a new high-level real estate department that would work to raise $150 million a year.
Action: Miller announced the city is setting up a real estate department called Build Toronto. A search is underway to hire a chief executive officer. Last year, the city took in $10.3 million on the sale of surplus land.
CO-ORDINATE PROJECTS
Recommendation: Hire a Senior Officer for Infrastructure to find savings from better co-ordination and monitoring of major projects such as sewer reconstruction and transit construction.
Action: Peter Crockett, who has worked in Hamilton and Halton Region, has been hired.
PROVINCIAL HELP
Recommendation: End the provincial services cost-sharing shortfall and get province to write off the $170 million "amalgamation" loan. The panel wanted the city to settle shared funding once and for all for Wheel-Trans, the zoo, court security, welfare, and hostels and emergency shelters in order to wipe out the roughly $200 million deficit faced each year by the city.
Action: The province has announced it will assume funding of welfare and court security over 10 years. No deal to write off the loan.
STRONGER MAYOR
Recommendation: Give the mayor the power to direct, appoint and dismiss the city manager.
Action: While no official change in legislation has taken place, despite public musings by Miller that he should have this power, along with the ability for the executive committee to meet in private, the mayor chose Joe Pennachetti as the new city manager last year. Miller simply named his choice, and council endorsed it.
ANNUAL REVIEW
Recommendation:
Mayor to meet panel once a year to review progress.
Action:
Ongoing.
http://www.thestar.com/News/GTA/article/585005
AoD
Mayor David Miller and his 44 councillors come face to face with the fallout from the crumbling economy today when this year's city budget is unveiled.But panel appointed to address financial problems says there have been steps forward
Feb 10, 2009 04:30 AM
Paul Moloney
CITY HALL BUREAU
It was launched with great fanfare on a cold February morning. A large room was reserved at the Royal York. At the front were five of six prominent citizens chosen by Mayor David Miller to pore through the books and offer their answer to the city's perennial money woes.
Months earlier, just four days before a crucial vote to impose new taxes and to fend off his critics, Miller reluctantly appointed a blue-ribbon panel:
Rahul Bhardwaj, president and chief executive officer of the Toronto Community Foundation; Canadian Auto Workers economist Jim Stanford; Larry Tanenbaum of Maple Leaf Sports and Entertainment; Blake Hutcheson, a commercial real estate expert; York University president Dr. Lorna Marsden and Paul Massara, president of a private equity business.
The panellists met for hundreds of hours with politicians and city officials. Finally they issued their analysis of how the city could save money. Now, nearly a year later what has been done?
Well, progress has been slow.
The panel acknowledged the province should stop burdening the city with sharing the costs of welfare and other programs, and a timetable for Queen's Park to eventually take back responsibility will begin next year.
But the panel also said there are things Toronto can do to solve the financial bind that has plagued it since amalgamation in 1998.
Be bold, the panel advised Miller. Look at selling Toronto Hydro, Toronto Parking Authority, Enwave, the Gardiner Expressway and Don Valley Parkway. That would pay off the city's debt.
"We pay more to service our debt than we pay to run the fire department," said Councillor Karen Stintz. But Miller said this week that Toronto Hydro provides a steady annual income for the city – about $50 million.
The fiscal review panel said the city could take in $150 million a year from underutilized real estate, and the mayor says the 262-space parking lot at Yonge St. and York Mills Rd. is a prime site for development. "Perhaps the parking authority doesn't need all of its parking lots," Miller said.
Still with little progress, some panel members say they're happy with the progress to date. Setting up Build Toronto marked an important break from the past, said Stanford.
"This is an agency explicitly with the mandate to identify underutilized assets, including land and buildings, and then try and get more value from them. I stress that that doesn't mean selling them. It usually means developing them."
The panel met late last month with Miller, said Bhardwaj. "I'm comfortable that the spirit of the report is being honoured," he said. "We see progress being made."
--------------------------------------------------------------------------------
EFFORTS TO END TORONTO'S FINANCIAL WOES
ECONOMIC DEVELOPMENT
Recommendation: Appoint an economic development senior officer to focus on regional economic growth.
Action: Nick Lewis, formerly managing director of RBC capital markets, was hired last year.
MAKE THE SMALL THINGS COUNT
Recommendation: Set up a Catch the Little Things Program that would review some of the smaller savings that together are significant.
Action: Councillor Karen Stintz has asked for an update. Stintz's motion was referred to the executive committee, chaired by the mayor. No word yet.
STREAMLINE DEPARTMENTS
Recommendation: The panel wants to see a review of the 119 city agencies that consume a third of the city's budget. Agencies include arena boards, business improvement areas and large institutions such as the TTC and the Toronto Public Library. It's believed that streamlining IT, human resources and payroll departments could save money.
Action: No review yet.
CUT THE DEBT
Recommendation: Reduce the city's $2.6 billion debt and, in turn, lower the $440 million paid out in interest each year. Panel said the city should look at monetizing Toronto Hydro, or selling assets such as the Toronto Parking Authority, Enwave, the Gardiner Expressway and Don Valley Parkway. Together they are worth $3.5 billion.
Action: Miller has announced $75 million from the sale of Toronto Hydro Telecom will go to repair affordable housing.
MONEY FROM PROPERTY
Recommendation: Use the city's massive real estate holdings to generate more income. The panel strongly urged the city to set up a new high-level real estate department that would work to raise $150 million a year.
Action: Miller announced the city is setting up a real estate department called Build Toronto. A search is underway to hire a chief executive officer. Last year, the city took in $10.3 million on the sale of surplus land.
CO-ORDINATE PROJECTS
Recommendation: Hire a Senior Officer for Infrastructure to find savings from better co-ordination and monitoring of major projects such as sewer reconstruction and transit construction.
Action: Peter Crockett, who has worked in Hamilton and Halton Region, has been hired.
PROVINCIAL HELP
Recommendation: End the provincial services cost-sharing shortfall and get province to write off the $170 million "amalgamation" loan. The panel wanted the city to settle shared funding once and for all for Wheel-Trans, the zoo, court security, welfare, and hostels and emergency shelters in order to wipe out the roughly $200 million deficit faced each year by the city.
Action: The province has announced it will assume funding of welfare and court security over 10 years. No deal to write off the loan.
STRONGER MAYOR
Recommendation: Give the mayor the power to direct, appoint and dismiss the city manager.
Action: While no official change in legislation has taken place, despite public musings by Miller that he should have this power, along with the ability for the executive committee to meet in private, the mayor chose Joe Pennachetti as the new city manager last year. Miller simply named his choice, and council endorsed it.
ANNUAL REVIEW
Recommendation:
Mayor to meet panel once a year to review progress.
Action:
Ongoing.
http://www.thestar.com/News/GTA/article/585005
AoD
