Item - 2025.EX28.13

The Executive Committee recommends that:

1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to the report (November 25, 2025) from the Chief Financial Officer and Treasurer to amend the 2025 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 nine months ended September 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 September 30, 2025.

Table 1: Tax-Supported Operating Variance Summary 

As detailed in Table 1 above, for the nine-month period, Tax-Supported Operations experienced an unfavourable net variance of $8.2 million. A favourable net variance is projected at year-end of $97.4 million.

It is important to note that the financial information presented is as of September 30, which is a snapshot in time and the year-end projection is based on current and expected future activities as known and anticipated.

Rate-Supported Programs:

Rate-Supported Programs reported a favourable year-to-date net variance of $57.2 million. At year-end, Rate-Supported Programs are projecting a favourable variance of $48.8 million.         

Table 2: Rate-Supported Operating Variance Summary 

The favourable year-to-date variance and favourable year-end projection is driven by Toronto Water and Solid Waste Management Services, with the favourable projection to year-end 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 of Toronto Parking Authority’s surplus is allocated to the City, with the remaining twenty-five percent reinvested in Toronto Parking Authority’s capital projects, which is consistent with an Income Sharing Agreement.