Item - 2022.PA33.1

The Board of Directors of Toronto Parking Authority:

1.  Approved the 2023 Operating Budget and 2023-2025 Capital Budget for Toronto Parking Authority as outlined in the report (October 26, 2022) from the President, Toronto Parking Authority, and directed the President, Toronto Parking Authority, to forward the 2023-2032 Capital Budget to the City of Toronto as part of the 2023 budget process.

2.  Approved the rates at the off-street parking facilities identified in Attachment 1 to the report (October 26, 2022) from the President, Toronto Parking Authority, and directed the President, Toronto Parking Authority, to implement these rates on or before February 1, 2023.

3.  Provided authority to the President, Toronto Parking Authority, to establish limited-time event rates at off-street parking facilities, as operationally required.

4.  Deferred the 2022 comprehensive on-street rate review and the 2022 Parking Market Rate Analysis to the 2024 budget cycle.

The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors with Management’s recommended 2023 Operating and Capital Budgets. As part of the approval process (and in recognition that this is an election year), the Board received the proposed budget for information at its meeting on September 29, 2022. Management will discuss the budget in further detail with the Toronto Parking Authority Board’s Audit and Risk Management Committee on November 8, 2022 and request formal approval of the 2023 Budget at the November 14, 2022 Special Board meeting.

Management is planning for 2023 full year net income of $25.4 million with parking revenue improving to 84 percent of pre-pandemic (2019) levels. Executionally, Management will remain focused on our five (5) strategic platforms: Build a Great Place to Work, Strengthen the Core, Drive Sustainable Growth Connect with our Customers, and Engage and Innovate with our Strategic Partners.

The proposed 2023 - 2025 Capital Budget totals $176.3 million.  The 2023 Capital budget is $71.3 million to support critical deliverables that include a more robust Health and Safety Strategy, accelerated growth of TPA's Electric Vehicle Charging Program, expansion of the Bike Share Toronto program, and development and execution of our Asset Management plan.

Based on our successful financial performance in 2022 and robust 2023 capital expenditure plans Management is forecasting that we will spend the entirety of our cash reserves by end of second quarter (Q2) 2024. Consistent with earlier discussions with the Board, Management has embarked upon negotiations with City Finance to secure a new income sharing agreement that supports our robust growth agenda.

At its meeting on November 8, 2022, the Toronto Parking Authority – Audit and Risk Management Committee considered Item PR3.3 and made recommendations to the Board of Directors of Toronto Parking Authority.

Summary from the report (October 26, 2022) from the President, Toronto Parking Authority:

The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors with Management’s recommended 2023 Operating and Capital Budgets. As part of the approval process (and in recognition that this is an election year), the Board received the proposed budget for information at its meeting on September 29, 2022. Management will discuss the budget in further detail with the Toronto Parking Authority Board’s Audit and Risk Management Committee on November 8, 2022 and request formal approval of the 2023 Budget at the November 14, 2022 Special Board meeting.

Management is planning for 2023 full year net income of $25.4 million with parking revenue improving to 84 percent of pre-pandemic (2019) levels. Executionally, Management will remain focused on our five (5) strategic platforms: Build a Great Place to Work, Strengthen the Core, Drive Sustainable Growth Connect with our Customers, and Engage and Innovate with our Strategic Partners.

The proposed 2023-2025 Capital Budget totals $176.3 million. The 2023 Capital budget is $71.3 million to support critical deliverables that include a more robust Health and Safety Strategy, accelerated growth of Toronto Parking Authority's Electric Vehicle Charging Program, expansion of the Bike Share Toronto program, and development and execution of our Asset Management plan.

Based on our successful financial performance in 2022 and robust 2023 capital expenditure plans Management is forecasting that we will spend the entirety of our cash reserves by end of second quarter (Q2) 2024. Consistent with earlier discussions with the Board, Management has embarked upon negotiations with City Finance to secure a new income sharing agreement that supports our robust growth agenda.