Item - 2024.EX17.11

The Chief Financial Officer and Treasurer recommends that:

1.  City Council approve in-year budget adjustments to the 2024-2033 Approved Capital Budget and Plan, as well as reallocations of funding sources for prior Approved Capital Budgets, as detailed in Appendix 3.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the six-month period ended June 30, 2024, as well as the projected 2024 year-end expenditures. Furthermore, this report seeks Council's approval for in-year budget adjustments to previous approved Capital Budget and Plan as outlined in Appendix 3 of this report.

Table 1 below summarizes the City's 2024 actual capital expenditures compared with the 2024 Approved Capital Budget for the six-month period ended June 30, 2024, and the projected expenditures by year-end, December 31, 2024.

Table 1: Capital Variance Summary

The City's actual capital spending through the first six months of 2024 is $1.681 billion or 26.6% of the 2024 Approved Capital Budget. This is slightly better than prior year’s experience. The projected year-end spending rate is 81.8% based on estimates provided by City Programs and Agencies, which is largely in line with last year’s projection at the same reporting period. Capital spending will continue to be reviewed with updates provided in future variance reports that will benefit from actual experience in the months where capital expenditures are more intense. As more actual delivery materialized over the course of the year, the Programs and Agencies will provide updated spending projections.

The capital expenditures in the first six months of 2024 totalled $1.681 billion and year-end expenditures are anticipated to increase to $5.165 billion or 81.8% of the total 2024 Adjusted Capital budget.

Appendix 1 summarizes the Year-To-Date (YTD) spending in the first six months of 2024 and the projected year-end spending rate by City Programs and Agencies.

Appendix 3 includes recommended in-year capital budget adjustments to the 10-Year Capital Budget and Plan. The adjustments include a net addition funding of $120.7 million, which mainly consists of converting $105.0 million from the previous approved future year debt estimate included in the approved 10-Year Capital Plan to future year commitment, and the remaining net additional funding of $15.7 million is supported by the Province. On the other hand, the adjustments encompass a total reallocation and transfer of $73.8 million between projects, and a net acceleration of $54.3 million which is offset by the deferral of $47.1 million. In addition, the budget adjustment also includes a reallocation of funding source totalling $33.2 million for prior Approved Capital Budgets to align with the year-end funding requirements.

Appendix 5 details a list of projects and subprojects scheduled for closure. The majority of projects to be closed have been identified as part of a capital cleanup process. All projects have been reviewed and approved by divisions and agencies for closure.