Item - 2025.EX25.8

The Executive Committee recommends that:

1. City Council approve the budget adjustments 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 as well as the recommended expenditure authority as detailed in Appendix E to the report (July 2, 2025) from the Chief Financial Officer and Treasurer.

The purpose of this report is to provide City Council with the Operating Variance for the year ended December 31, 2024. This report also requests City Council's approval for amendments to the 2024 Approved Operating Budget that have no impact on the City's Net Budget.

The following table summarizes the year end financial position for the City's Tax-Supported Operations as of December 31, 2024.

Table 1: Tax-Supported Operating Variance Summary

As detailed in Table 1 above, for the 2024 year-end, Tax-Supported Operations experienced a favourable net variance of $114.4 million. The favourable net variance reflects adjustments for Toronto Building whose surplus is allocated to reserves by legislation.

Rate-Supported Programs:

Rate-Supported Programs reported a favourable year-end net variance of $34.2 million.  

Table 2: Rate-Supported Operating Variance Summary

The favourable year-end variance is driven by all three rate programs.

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%) of Toronto Parking Authority’s surplus is allocated to the City, with the remaining 25% reinvested in Toronto Parking Authority’s capital projects, which is consistent with the Income Sharing Agreement.