A review of Toronto's core services has found that the city could save millions of dollars by cutting child-care spaces, transferring control of its daycare centres and merging its medical and fire services.

The cost-saving measures are outlined in a report that was submitted to the city's community development and recreation committee Wednesday.

It's the third core service review report to be released this week. The review, conducted by KPMG consultants, was launched earlier this year to identify ways the city can save money as it struggles with a $774-million budget shortfall.

According to the report, the city could slash the amount of money it devotes to child care.

One way to save money would be to transfer control of city-run child-care centres to non-profit groups or private companies, the report stated.

The city could also phase out 2,000 subsidized daycare spaces that are no longer funded by the province.

Another option would be to scrap inspections of subsidized child-care centres, a step that would leave licensing and quality control responsibilities to the province.

The report also identified potential savings in the area of emergency services.

The city could amalgamate Toronto EMS and Toronto Fire Services, and cut the range of medical calls that firefighters respond to.

Here are some more highlights or cost-saving options contained in the report:

  • Eighty-seven per cent of services overseen by the community development and recreation committee are essential
  • Of those, only 16 per cent are delivered at levels that exceed established standards, mostly within child-care delivery and long-term care homes
  • Consider outsourcing some inter-facility patient transports
  • In long-term care homes, terminate services or transfer day programs to a community agency
  • Sell long-term care homes to private sector operators

The community development and recreation committee, chaired by Coun. Giorgio Mammoliti, oversees child care and other social or community issues.

Snippets of a city service review are being released in phases this week in a series of standing committee reports at city hall.

On Tuesday, a report to the economic development committee suggested the city could save millions by reducing or eliminating all of its business services and cultural services funding, including arts programming, cultural development, events programming and heritage programming and support.

On Monday, a report to the public works and infrastructure committee found that introducing and expanding the contracting of solid waste collection is the most significant cost reduction opportunity.

Buyouts offered, police layoffs possible

Another way the city is trying to trim costs is by offering voluntary buyouts to 17,000 employees.

Unionized employees are being offered three weeks' pay for every year of service, while managers are being offered four weeks' pay for every year of employment.

Layoffs are possible if the city fails to generate enough savings.

According to a Toronto Star report, 3,000 people need to take the buyout for the city to get its desired savings.

The Toronto Police Service is dealing with a similar situation, the newspaper reported.

More than 500 police officers could be handed layoff notices in January as part of the Ford administration's pledge to shrink the police budget and the city's workforce, the Star reported.