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City of Toronto Customized Global Template STAFF REPORT October 7, 2002 To: Policy and Finance Committee From: Chief Administrative Officer Subject: Candidate Projects: Canada Strategic Infrastructure Fund and Border Infrastructure Fund and the Status Report on Infrastructure Funding Programs Purpose: This report recommends priority projects for submission by the City of Toronto to the Canada Strategic Infrastructure Fund and Border Infrastructure Fund. A status report on City of Toronto’s participation in Provincial and Federal infrastructure funds is appended to this report for information. Financial Implications and Impact Statement: There are no financial implications to the City of Toronto arising from the recommendations of this report. Access to Federal infrastructure funding would relieve some of the City’s fiscal pressures. It would also enable the City to make progress on the maintenance and enhancement of its infrastructure. Recommendations: It is recommended that: (1) Council submit a request to the Federal government through the Canada Strategic Infrastructure Fund for funding to maintain and modernize the infrastructure assets of the Toronto Transit Commission as follows: - Streetcar and Track Renewal and Replacement – $622 million over 10 years; - SRT Expansion and Modernisation – $133 million over the next 10 years; - Subway Fire Ventilation Upgrades – $250 million over 20 years; and - Easier Access Program – $270 million over 18 years; (2) Council submit a request to the Federal government through the Border Infrastructure Fund for funding to the Toronto-Rochester Fast Ferry Project; - 2 - (3) The Mayor communicate to the Prime Minister and Federal Minister responsible for Infrastructure: - that Toronto welcomes the Government of Canada’s commitment to a 10-year urban infrastructure strategy to accommodate long-term strategic initiatives essential to the competitiveness and sustained growth of cities as indicated in the Speech from the Throne on September 30, 2002; - that Toronto needs Federal participation in funding the Toronto Transit Commission capital program totalling $3.8 billion over the next ten-years to maintain and enhance infrastructure in Toronto; and - that the City of Toronto be included in consultation by the Government of Canada on major infrastructure funding initiatives; (4) the Mayor and the Chair of the TTC request a meeting with the Honourable Allan Rock to articulate the needs of the City of Toronto for access to sustained, predictable sources of revenue; (5) a copy of this report be sent to Prime Minister Jean Chretien, the Honourable Allan Rock, the Honourable David Collenette and all Toronto MPs and MPPs; and (6) the appropriate City officials be authorized and directed to take the necessary action to give effect thereto. Background: The Federal Budget announced in December 2001 included the creation of the Canada Strategic Infrastructure Fund (CSIF) with a minimum federal commitment of $2 billion and the Border Infrastructure Fund (BIF) with funding of $600 million. In August 2002 the parameters for CSIF and BIF were released. As announced in August 2002, the key features of the funds are as follows. The Canada Strategic Infrastructure Fund (CSIF) • The Government of Canada will contribute up to a maximum of 50% of total eligible costs. • In Ontario, Quebec, Alberta and British Columbia the total eligible project costs will be at least $75 million to ensure that the projects are large-scale. • The projects can involve the Federal government with any combination of municipal, provincial and private partnerships. • The investment categories are: - Highway and Railway Infrastructure - Local Transportation Infrastructure - Tourism or Urban Development - Water or Sewage Infrastructure - Broadband - 3 - The Border Infrastructure Fund (BIF) • The BIF supports the Smart Borders Action Plan to reduce border congestion and expand infrastructure over the medium term. The key features of the Border Infrastructure Fund are: - The Government of Canada will contribute up to a maximum of 50% of total eligible costs. - The fund will be implemented in cooperation with provincial, territorial and municipal governments, and other partners from the private and public sector on both sides of the border. - The categories for projects are: - Physical Infrastructure – to better facilitate flow of people and goods across the border; - Intelligent Transportation System Infrastructure – to monitor and improve flows at border crossings; and - Improved Analytical Capacity – to facilitate planning and policy development. At its meeting on October 1-3, 2002, City Council adopted as amended Policy and Finance Committee Report no. 13 Clause no. 2 and in doing so directed the Chief Administrative Officer to coordinate the preparation of submissions to the Canada Strategic Infrastructure Fund and Border Infrastructure Fund in consultation with and on behalf of City departments, agencies, boards and commissions and report back to Council through the Policy and Finance Committee in October with recommendations on the proposals for submission. The Chief Administrative Officer was also requested to report on the status of the City of Toronto applications to provincial and federal infrastructure programs to the October Policy and Finance Committee. Comments: In September 2002 the Chief Administrative Officer convened a working group of staff from key departments and agencies to identify candidate projects to be considered for submission for funding. In addition to the stated parameters for each of the funds described above, the working group established the following additional City principles for candidate projects: Broad-based and Strategic Support Candidate projects should achieve a broad range of the City’s strategic objectives and priorities, i.e., as found in the Strategic Plan, Official Plan, Economic Development Plan, Social Development Strategy, etc. Funding in Place Funding is included in the 5-year Capital Budget. Projects that leverage funds in collaboration with other municipalities, private sector participants and the Province and have significant regional benefits. Sound Business and Financial Case Project costs are determined. Operational costs have been identified and can be accommodated. - 4 - Ready-to-go Achievable within program timeframes (the timeframes for the two funds have not yet been established). Major approvals are in place e.g. Environmental Assessment. Technical requirements are in place e.g. property acquisition, site availability, clean up, zoning, access. Canada Strategic Infrastructure Fund (CSIF) The City has enormous pressures on its capital budget affecting many capital projects across departments. Over the past few years the capital budget has included projects that are primarily required for health and safety and state of good repair. In order to keep debt and debt service charges contained the City has been deferring capital spending resulting in a growing backlog of maintenance and rehabilitation. Capital budget for expansion or enhancement projects has been minimal. Although projects that provide a new attraction or expand a desirable service may attract funding from the CSIF, the City’s priority must continue to be funding to maintain existing assets and offset capital budget expenditures. The Toronto Transit Commission comprises one of the largest parts of the City’s capital budget. Last year the TTC capital budget (excluding the Sheppard Subway project) was $230 million primarily for state of good repair. The City funded $77 million of the budget including TTC contributions on the basis of Federal and Provincial governments providing 1/3, $77 million, each. The TTC and the City have repeatedly made the case that the Federal and Provincial governments must provide the City with sustained and predictable funding in order to keep the transit system in good working order. Earlier this year the Provincial and Federal governments committed $76 million each to the TTC, including about $62 million each for transit fleet renewal. (Details are included in Appendix A: Status Report on Infrastructure Programs). But it isn’t enough. The City and TTC have significant investments in transit infrastructure that must be addressed through a predictable and sustained stream of funding year after year. The candidate projects proposed for submission to the CSIF are all transit projects. Transit in Toronto has broad-based and strategic support. Toronto’s transit system is one of the City’s and the GTA’s strongest assets. As the hub of the inter-regional network serving the Greater Toronto Area, the TTC provides the most intensively used transit services with extensive integration with GO Transit and transit in adjacent municipalities. Transit planning and improvement initiatives in other municipalities in the GTA rely heavily on the TTC. Greater use of transit in the Greater Toronto Area is critical to addressing air-quality issues, smart-growth initiatives and federal green objectives. Improving and enhancing transit is a key thrust in the proposed City of Toronto Official Plan and the Greater Toronto Area Strategic Transportation Plan. Transit improvements are dependent on ensuring that the existing TTC system is maintained and modernized. In considering the broad application of Federal funding to City transit infrastructure, the 10-year needs of the TTC must be considered. The TTC’s capital program amounts to an investment of - 5 - $3.8 billion over the next 10 years to provide for the reinvestment and rehabilitation of physical
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