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

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

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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

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February 5, 2019

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Toronto Community Housing

2019 Budget

Presentation to the TCHC Board of Directors

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2019 Budget: Overview

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  • 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
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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

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2019 budget: sources of funds

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Operating budget: uses of funds

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*Amount includes IHMS of $21.9M

*

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Consolidated operating cash flow

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Budget Reforecast Budget (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%

** 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 2019B vs 2018B * Budget includes Council Directives of $5.5M

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Building capital renewal plan

  • $313.1M spend in 2019; year-end FCI estimated at 18.2%
  • Four-year capital spend commitment being requested from the City

to support long-term project planning

  • 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
  • Drops to $337M in 2026 when year-end FCI is 10.1%
  • 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

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Building capital renewal: uses of funds

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10-year building renewal capital budget:

Projects by envelope

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Budget Category consolidated Capital Envelope RC Programs Contribution to Backlog Project Category 2017 Actuals 2018 2019 2020 2021 2022 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 RC03 Electrical 100% Health & Safety $2,995,716 $3,797,500 $6,000,000 $6,000,000 $6,000,000 $5,900,000 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 RC23 Structural 100% Health & Safety $9,708,595 $11,155,000 $6,442,000 $8,000,000 $20,000,000 $20,000,000 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 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 COXX 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 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 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 ADM 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 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 Planned Capital Demand Capital Energy Programs Capital Other

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10-year building capital renewal budget:

Financing and forecasted FCI

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  • $160M City Capital Funding for 2020 and beyond requires City Council approval

(in $ millions) 2018 - 2027 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 Total Year End Capital Backlog Needs 914 896 1,022 1,343 1,516 1,560 1,763 1,825 1,773 1,638 1,527 1,405 1,242 1,131 1,150 1,150 9.5% 9.5% 11.1% 14.6% 16.2% 16.4% 18.2% 18.4% 17.6% 15.9% 14.5% 13.1% 11.4% 10.1% 10.1% 10.1% TCHC Capital Cash Balances Opening Cash Balance 116 116 154 287 161 267 117 99 (11) (150) (294) (449) (584) (741) (891) 267 In Year Funding 176 165 309 111 356 (10)

  • (10)

Required funding through Debt

  • 122

80 51 46 35 55 33 27 27 476 City Capital Funding

  • 160

173 160 160 160 160 160 160 160 160 1,613 Funds Available for Capital 293 282 462 399 517 417 412 339 200 56 (99) (234) (391) (554) (704) 2,346 Total Capital Spend (60) (128) (175) (238) (250) (300) (313) (350) (350) (350) (350) (350) (350) (337) (160) (3,210) Ending Cash on Hand (Shortfall) 233 154 287 161 267 117 99 (11) (150) (294) (449) (584) (741) (891) (864) (864) Funds required 11 139 144 155 135 157 150 (27) 864 TCHC - Ten Year Plan 2018-2027 Actuals Forecast Year End Facilities Condition Index (FCI):

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4-year rolling capital plan:

Multi-year funding commitment

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  • Approval of four-year commitment:
  • improves value for money
  • minimizes tenant disruption
  • reduces premium costing for phasing

Multi-year project spend

TCHC - Four Year Plan 2019 – 2022 (in $ millions) Forecast 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Year End Capital Backlog Needs 914 896 1,022 1,343 1,516 1,560 1,763 1,955 2,148 2,294 TCHC Capital Cash Balances Opening Cash Balance

  • 116

154 287 161 267 117 53 26 138 In Year Funding 176 165 309 111 356 (10)

  • Required funding through Debt
  • 76
  • City Capital Funding
  • 160

173 160 160 160 Additional Funding Shortfall

  • Funds Available for Capital

176 282 462 399 517 417 366 213 186 298 Total Capital Spend (60) (128) (175) (238) (250) (300) (313) (187) (49) (7) Ending Cash on Hand (Shortfall) 116 154 287 161 267 117 53 26 138 291 Strategic 4 Year Capital Rolling Plan Actuals

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Development capital: breakdown

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Equity Grants Land Sale Equity Return

Rental Buildings

98.0 (24.9) 73.2

Market Buildings

4.9 (25.6) (6.7) (8.8) (36.2)

Development Department Costs

  • Development Division Unit

3.6 3.6

Asset Management Relocation Unit

0.6 0.6

Tenant Community Services Revitalization Unit

2.4 2.4

Total

109.5 (24.9) (25.6) (6.7) (8.8) 43.6 Development Capital Breakdown (Amounts in Millions) Profits Net Investment

Project Rental Alexandra Park 21 Regent Park 339 Total 360 Summary of Units To Be Completed in 2019

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Development capital: budget

  • Gross spend of $109.5M
  • Funding sources $66.0M
  • $41M: Land, return of capital, profit distribution
  • $25M: Funding from the City and the provincial government
  • 360 rental replacement units to be completed in 2019
  • New projects: $627K
  • New development – due diligence for potential projects: $500K
  • Regent Park Phase 4 & 5 – planning: $112K
  • Don Summerville – predevelopment: $15K

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Development capital: uses of funds

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Summary

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  • 2019 budget reflects our new four-year strategic plan
  • Builds on 2018 progress to improve outcomes for tenants

and ensure no permanent closures of units

  • Break-even operating budget on revenues of $601.2 million
  • Enhances community safety, security and fire life safety
  • Improves building conditions and tenant-facing services
  • Moves the Tenants First plan forward through the Interim

Seniors Housing Unit and the Tenant Engagement System

  • $21.9 million for a one-time business transformation project

to improve service to tenants