Item - 2025.EX25.10

The Executive Committee recommends that:

1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (July 2, 2025) from the Chief Financial Officer and Treasurer to amend the 2024 Approved Operating Budget, with no impact on the Net Operating Budget of the City.

The purpose of this report is to provide City Council with the Operating Variance for the four months ended April 30, 2025, as well as projections to the year-end, December 31, 2025. This report also requests City Council's approval for amendments to the 2025 Approved Operating Budget that have no impact on the City's Net Budget.

The following table summarizes the year-to-date financial position and year-end projections for the City's Tax-Supported Operations as of April 30, 2025.

Table 1: Tax-Supported Operating Variance Summary

As detailed in Table 1 above, for the four-month period, Tax-Supported Operations experienced a favourable net variance of $62.9 million. A favourable net variance of $0.8 million is projected at year-end. These favourable variances reflect adjustments for Toronto Building and City Planning, whose surpluses are allocated to reserves by legislation and Council policy or supported by reserve draws in the event of a deficit. The financial information presented is as of April 30 and represents a point-in-time snapshot, with the year-end projection based on current and anticipated future activities.

Rate-Supported Programs:

Rate-Supported Programs reported a favourable year-to-date net variance of $5.5 million. At year-end, Rate-Supported Programs are projecting a favourable variance of $32.2 million.         

Table 2: Rate-Supported Operating Variance Summary

The favourable year-to-date variance is driven by all three programs: Toronto Water, Toronto Parking Authority and Solid Waste, however the favourable projections to year-end are mainly driven by Toronto Water

Rate-Supported Programs are funded entirely by user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water’s respective year-end surpluses, if any, must be transferred to the Waste Management Reserve Fund and the Wastewater and Water Stabilization Reserves respectively, to finance capital investments and ongoing capital repairs and maintenance. Seventy-five percent (75 percent) of Toronto Parking Authority’s surplus is allocated to the City, with the remaining 25 percent reinvested in Toronto Parking Authority’s capital projects, which is consistent with the Income Sharing Agreement.