Item - 2024.EX16.10

The Executive Committee recommends that:

1. City Council approve in-year budget adjustments to the 2023-2032 Approved Capital Budget and Plan as detailed in Appendix 4 to the report (June 28, 2024) from the Chief Financial Officer and Treasurer.

The purpose of this report is to provide City Council with the City of Toronto’s capital spending for the twelve-month period ended December 31, 2023. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2023 Approved Capital Budget and Plan to align with the year-end funding requirements.

As illustrated in Table 1 below, the City's 2023 capital expenditure was $4.219 billion or 71.4% of the 2023 Approved Capital Budget of $5.911 billion for the period ended December 31, 2023.

- Tax Supported City Programs and Agencies reported capital expenditures of $2.994 billion representing 68.8% of their collective 2023 Approved Capital Budget of $4.349 billion.

- Rate Supported City Programs reported capital expenditures of $1.225 billion, representing 78.5% of their collective 2023 Approved Capital Budget of $1.561 billion.   

Table 1: Capital Variance Summary

The City's actual capital delivery in 2023 has improved from the average expenditure of $3.65 billion from 2019-2022 to $4.22 billion. In 2023, City Programs and Agencies enhanced budget planning and process management, including improving clarity and accountability in project execution and implementation, streamlining business planning processes, and improving decision-making. These actions along with improvements in the supply chain and other market conditions contributed to the on-time delivery or acceleration of capital projects. As a result, the City has achieved a spending rate of 71.4% in 2023, which is greater than the 2019-2022 average of 68%, with an aim for continued improvements in the coming years.