Reduce childcare spaces, consider closing libraries & sell landmarks: city manager

In an attempt to find hundreds of millions in annual savings, the city manager has recommended reducing subsidized childcare spaces, closing library branches and selling some major landmarks, including the Toronto Zoo, Riverdale Farm and city-run theatres.

The dozens of suggestions put forward Monday could result in $100 million in savings in 2012 and potentially $300 million by 2014, city manager Joe Pennachetti said during a news conference. His recommendations were based on city consultant KPMG’s core services review released earlier this summer. The city needs to stop gap a 2012 operating shortfall of $774 million.

Pennachetti’s report will go before the city’s executive committee for approval on Sept. 19 and will then go to council on Sept. 26. Cuts must be approved by council.

“There are, maybe, some items here that there isn’t a political will to do or taste that people are not happy with, but this is the starting point … if there’s something we don’t like here, we can take it out,” city budget chief Mike Del Grande said at a morning news conference.

VIDEO: City Manager & budget chief on proposed cuts

Mayor Rob Ford spoke at “Tree of Life” event on the Danforth on Monday and the Friends of Riverdale Farm showed up on short notice to protest the cuts.

“It will be a battle and there will be blood all over the ground over this,” demonstrator Randy Brown said.

“We’re looking at different ways of delivering services and getting out of businesses we shouldn’t be in,” Ford countered.

“I’ve always said we shouldn’t be in the theatre business, we shouldn’t be in the zoo business,” he added.

Another $58.9 million in savings will come from the buyout packages offered to city workers. So far, 1,100 people have agreed to take part in the Voluntary Separation Program (12 per cent from management and 88 per cent in bargaining unit positions.) The city estimates 70 per cent, or 700 of these applications, will be approved.

With regard to the recommended cuts, Pennachetti is suggesting the city reduce subsidized child care spaces through attrition once the Child Care Expansion Reserve Fund runs out in 2013. Pennachetti wants the city to ask the province for more childcare money.

The report also calls for more study on the childcare issue and whether city-run centres should be transferred to private operators. The mayor has already put Coun. Giorgio Mammoliti in charge of that file.

Pennachetti also wants more study into whether city-run long-term care facilities should be sold off.

Reducing library hours and considering closing some branches are also recommendations put forward in the report and, as was evidenced with the KPMG study, have been some of the most controversial suggestions, drawing criticism from the likes of Margaret Atwood.

As was noted in the KPMG report, Pennachetti is also recommending Toronto police consider reducing the size of the force by implementing a freeze on new hires and providing incentives for early retirement.

Pennachetti is asking all city departments to reduce their budgets by 10 per cent.

Toronto Police Chief Bill Blair has said he’d have to take 1,000 officers off the streets to meet the city’s budget demands.

Monday’s report also says a merger of Toronto Fire and EMS should be considered, as well as “developing new models to shift resources to EMS response and less to fire response over time.”

The report also recommends the city issue a request for expression of interest to operate city-run zoos and farms, including Riverdale Farm. If no one bites, those facilities should be closed, the city manager said.

Pennachetti also suggests the city could save cash by reducing or eliminating the Blue Night TTC bus Network. If it’s not eliminated, the city should consider raising fares for late-night rides, he said.

The report also recommends the city sell off the Toronto Zoo, three taxpayer-funded theatres (Sony Centre, the St. Lawrence Centre for the Arts and the Toronto Centre for the Arts) and Heritage Toronto.

Some councillors reacted to the report online.

“Unbelievable: Mayor’s report continues with all the cuts on the table. This would devastate the city if implemented; what is he doing?” Joe Mihevc tweeted.

“Long list of cuts. Childcare, arts & culture, street & snow cleaning, etc. What happened to Ford’s promise of NO service cuts?” Mike Layton tweeted.

Several hundred people turned up at a rally at Dufferin Grove Park over the weekend to protest the potential cuts. As of Monday afternoon, more than 800 people had signed an online petition started by the Stop the Cuts Network.

Pennachetti said public response to the KPMG report was taken into account. Nearly 200 citizens spoke at a marathon session of the executive committee in July.

He said the suggested cuts alone won’t solve the city’s cash crunch.

“I want to be clear that the recommendations I have in this report are not all the solutions to balance our budget … this is one piece. The core service review and reviewing our services was one piece of the budget process,” Pennachetti said.

Here are some selected recommendations from Pennachetti’s report:

-eliminate the current windrow clearing program, request a windrow and sidewalk shovelling program for seniors and people with disabilities program be operated by a third party.
-work with province to find potential partnership opportunities related to governance of Exhibition Place and Ontario Place
-close museums with least attendance
-eliminate animal pick-up and delivery of owner-surrendered animals to shelters
-reduce service level standard for snow clearing in city parks to eight centimetres from six centimetres
-eliminate the four free garbage tag program
-eliminate Employment and Social Services Christmas Bureau and the Hardship Fund
-reduce or eliminate proactive inspection for illegal signs
-reduce or eliminate Toronto Public Health’s dental program
-more study on city’s forestry plan

Click here to read the full report.

Click the links below to see overviews of KPMG’s core services review:

Pt. 1 – Expand contracting out of waste collection
Pt. 2 – Suggested cuts to cultural, business services
Pt. 3 – Suggested cuts to daycare, long-term care homes
Pt. 4 – Zoo attractions, grass cutting could be cut
Pt. 5 – Pet licensing, bylaw enforcement could go
Pt. 6 – 311 & finance services in focus
Pt. 7 – Arts funding, heritage preservation could go
Pt.8 –  Police, TTC cuts proposed