Toronto Community Housing 2019 Budget Presentation to the TCHC - PowerPoint PPT Presentation

Toronto Community Housing 2019 Budget Presentation to the TCHC Board of Directors February 5, 2019 1

2019 Budget: Overview • A $1.05B budget compared with $1.04B in 2018 • Operating budget = $601.2M  Revenue: $601.2M  Breakeven budget • Capital Budget = $422.6M  Building Renewal: $313.1M  Development: $109.5M • Business transformation = $21.9M  One-time capital project funded from 2018 surplus 2

2019 priorities Positive Tenant Experience • Align staffing levels for Seniors Housing Unit • More resources for frontline service improvements Quality Homes • Building capital renewal plan • Community revitalization Vibrant Communities • Community safety and security • Fire life safety • Tenant engagement system refresh 3

2019 budget: sources of funds 4

Operating budget: uses of funds * 5 *Amount includes IHMS of $21.9M

Consolidated operating cash flow Budget Reforecast Budget 2019B vs 2018B (Amounts in $000s) 2019* 2018** 2018 $ % Cash Inflows Residential rent 319,373 322,953 307,630 11,743 4% Subsidies 243,438 241,605 243,795 (357) 0% Parking, laundry and cable fees 18,184 18,301 18,079 105 1% Commercial rent 15,284 15,172 14,947 337 2% Other revenue 4,923 3,835 5,361 (438) -8% 601,203 601,867 589,812 11,391 2% Cash Outflows Utilities 131,226 122,578 140,594 (9,368) -7% Municipal taxes 18,477 18,432 17,628 850 5% Mortgage Interest & Principle 129,217 124,757 129,700 (483) 0% Operating and Maintenance 141,448 139,146 135,409 6,038 4% Tenant and Community Services 16,258 13,097 15,715 543 3% Community Safety Services 31,363 25,363 18,020 13,343 74% Human Resources 12,705 10,874 12,355 350 3% Information Technology 15,359 11,496 12,870 2,489 19% Corporate Services*** 47,691 41,684 44,375 3,316 7% Interim Seniors Housing Unit 22,643 20,460 20,171 2,472 12% Tenants First 2,176 1,410 2,968 (792) -27% Other 18,892 19,371 18,197 696 4% RPEI operating expenditure 3,162 2,191 2,767 395 14% Capital Transfers 10,586 16,940 5,143 5,443 106% 601,203 567,800 575,911 25,292 4% Net Operating Cash Surplus before IHMS (0) 34,067 13,901 (13,901) -100% * Budget includes Council Directives of $5.5M ** 2018 Surplus will fund 2019's IHMS spend of $21.9M (surplus includes $11.7M that was budgeted in 2018 and deferred to 2019) *** Includes Chief Executive Office, Commercial, Communications, Development, Finance, Legal, Risk & Fire Safety, Procurement, Service Integration & Delivery, Strategic Planning, and Commissioner of Housing Equity 6

Building capital renewal plan • $313.1M spend in 2019; year-end FCI estimated at 18.2% o Four-year capital spend commitment being requested from the City to support long-term project planning o City has increased funding to $173M for 2019 with incremental Social Housing Apartment Improvement Program (SHAIP) funding • Annual capital spend increases to $350M starting in 2020 o Drops to $337M in 2026 when year-end FCI is 10.1% o Annual $160M spend in following years to maintain 10% FCI • Funding solutions are being pursued to address the $2.1B unfunded portion of the building renewal capital backlog 7

Building capital renewal: uses of funds 8

10-year building renewal capital budget: Projects by envelope Budget Category Capital Contribution RC Programs Project Category 2017 Actuals 2018 2019 2020 2021 2022 consolidated Envelope to Backlog Planned Capital CA01 Common Area Accessibility 40% State of Good Repair $9,298,258 $8,500,000 $8,500,000 $8,500,000 $10,000,000 $10,000,000 CC01 Commercial - Laundry Rooms 100% State of Good Repair $1,995,512 $1,500,000 $1,500,000 $1,500,000 $1,500,000 $1,500,000 CC09 Commercial Retail Repairs 25% State of Good Repair $1,504,702 $1,000,000 $1,000,000 $1,500,000 $1,500,000 $2,000,000 Electrical 100% Health & Safety $2,995,716 $3,797,500 $6,000,000 $6,000,000 $6,000,000 $5,900,000 RC03 RC05 Elevators 100% Health & Safety $7,576,513 $4,800,000 $5,430,000 $5,000,000 $8,000,000 $8,000,000 RC07 Envelope 90% Health & Safety $24,311,410 $40,183,728 $29,530,000 $45,000,000 $50,000,000 $39,000,000 RC08 Grounds 100% Health & Safety $10,565,883 $10,025,240 $13,060,000 $9,000,000 $15,000,000 $15,000,000 RC09 Interior 100% State of Good Repair $7,953,385 $4,635,000 $6,000,000 $6,000,000 $10,000,000 $10,000,000 RC12 Life Safety 100% Health & Safety $7,565,721 $5,590,000 $8,585,000 $5,000,000 $10,000,000 $10,000,000 RC15 HVAC 100% Health & Safety $8,993,601 $16,524,840 $13,850,000 $10,000,000 $15,000,000 $25,000,000 RC16 Plumbing 100% Health & Safety $12,923,047 $10,059,540 $13,985,000 $12,000,000 $25,000,000 $25,000,000 RC18 Roofing 100% Health & Safety $6,382,434 $8,539,000 $5,480,000 $8,000,000 $16,000,000 $25,000,000 RC19 Cameras and Access Control 25% Health & Safety $8,400,888 $7,000,000 $5,000,000 $3,000,000 $5,000,000 $5,000,000 RC22 Single Dwelling Units 100% Health & Safety $4,038,483 $4,000,000 $5,000,000 $2,000,000 $0 $0 Structural 100% Health & Safety $9,708,595 $11,155,000 $6,442,000 $8,000,000 $20,000,000 $20,000,000 RC23 RC24 Parking Garages 100% State of Good Repair $11,429,532 $18,380,000 $9,024,000 $12,000,000 $15,000,000 $15,000,000 RC39 Common Area Hallway Repairs 100% State of Good Repair $0 $2,000,000 $1,000,000 $1,000,000 $5,000,000 $5,000,000 RC41 Swimming Pool Envelope 100% State of Good Repair $0 $0 $1,000,000 $1,000,000 $1,000,000 $1,000,000 RCHH Heritage Houses 75% Health & Safety $1,584,184 $3,000,000 $4,000,000 $2,000,000 $2,000,000 $2,000,000 RCXZ Capital Contingency** 70-90% State of Good Repair $0 $29,044,417 $27,775,000 $27,121,000 $30,600,000 $30,500,000 Planned Capital Total $137,227,864 $189,734,265 $172,161,000 $173,621,000 $246,600,000 $254,900,000 Demand Capital CA02 Resident's Demand Unit Accessibility Upgrades 40% State of Good Repair $6,091,329 $6,000,000 $6,000,000 $6,000,000 $7,000,000 $7,000,000 CA03 Common Area Demand Accessibility Upgrade 40% State of Good Repair $532,755 $1,400,000 $1,400,000 $1,400,000 $1,600,000 $1,600,000 CG01 Waste Equipment Repairs 40% State of Good Repair $800,033 $1,000,000 $1,000,000 $1,000,000 $1,000,000 $1,000,000 CI01 Risk Management and Insurance Claims 50% Health & Safety $4,397,635 $4,000,000 $4,000,000 $4,000,000 $4,000,000 $4,000,000 FM Demand Component Capital 50-70% State of Good Repair $37,135,969 $19,000,000 $28,000,000 $28,000,000 $35,000,000 $35,000,000 COXX LCXX Resident Appliances and Equipment 100% State of Good Repair $5,247,858 $2,000,000 $2,000,000 $2,000,000 $2,000,000 $2,000,000 LMXX Local Moveouts 100% State of Good Repair $9,088,342 $9,000,000 $11,000,000 $11,000,000 $11,000,000 $11,000,000 SOGI State of Good Repair - Interior 100% State of Good Repair $6,454,891 $8,000,000 $8,000,000 $8,000,000 $15,000,000 $10,000,000 SOGM State of Good Repair - MLS Issues 75% Legislative $4,612,298 $6,000,000 $5,000,000 $5,000,000 $5,000,000 $5,000,000 Demand Capital Total $74,361,109 $56,400,000 $66,400,000 $66,400,000 $81,600,000 $76,600,000 Energy Programs AIP1 Apartment Investment Plan - SHAIP 85% State of Good Repair $0 $0 $50,000,000 $83,110,854 $0 $0 AIP2 Apartment Investment Plan - Non SHAIP 10% State of Good Repair $0 $0 $3,500,000 $4,728,146 RPEI Regent Park Energy Initiatives 0% State of Good Repair $7,156,099 $3,065,735 $5,050,000 $4,140,000 $3,800,000 $0 RCER RCER - Energy Repair Capital 9 Buildings 85% State of Good Repair $18,960,921 $35,300,000 $0 $0 $0 $0 Energy Programs - RPEI Total $26,117,020 $38,365,735 $58,550,000 $91,979,000 $3,800,000 $0 Capital Other FM Labour Costs - Project Management (5%) 0% State of Good Repair $12,657,906 $15,000,000 $15,000,000 $17,500,000 $17,500,000 $17,500,000 ADM RC01 Building Condition Audits 0% State of Good Repair $207,638 $500,000 $1,000,000 $500,000 $500,000 $1,000,000 Capital Other Total $12,865,544 $15,500,000 $16,000,000 $18,000,000 $18,000,000 $18,500,000 Grand Total $250,571,537 $300,000,000 $313,111,000 $350,000,000 $350,000,000 $350,000,000 9