Item - 2025.PA17.3

The Board of Directors of the Toronto Parking Authority:

1. Approved the proposed 2026 Operating Budget and 2026 - 2028 Capital Budget for Toronto Parking Authority as presented in Attachment 1 to the report (November 25, 2025) from the President, Toronto Parking Authority, with the following amendments:

a. Reduce the 2026 Operating Budget Submission for Services and Rent by $1.1 million gross, to reflect the inclusion of the Toronto Parking Authority in the City’s corporate insurance program as of June 30, 2026;

b. Reduce the 2026 Operating Budget Submission for Services and Rent by a further $0.6 million gross, to reflect the inclusion of the Toronto Parking Authority in the City’s cyber-security program;

c. Adjust the 2026 Capital Plan by replacing the funding sources of applicable capital projects from Toronto Parking Authority’s retained earnings to City debt, ensuring capital investments are financed over the term of the asset’s useful life;

d. Eliminate the 2026 Operating Budget Submission of $17.1 million associated with amortization and depreciation expenditures, to reflect the change in capital financing referenced in Part 1c above; and

e. Increase the 2026 planned dividend to the City of Toronto by $29.4 million, inclusive of the above actions totalling $18.8 million in net operating expenditure reductions, and notwithstanding the current Toronto Parking Authority Income Share agreement, reflect an additional $10.6 million from retained earnings, in accordance with capital financing changes referenced in Part 1c above and the proposed suspension of the Income Share Agreement recommended in Part 2 below.

2. Directed the President, Toronto Parking Authority to work with the Chief Financial Officer and Treasurer, City of Toronto to prepare, for submission to City Council, a request to seek the suspension of the 2024-2026 City of Toronto – Toronto Parking Authority Net Income Share Agreement, effective for 2026, to enable all Toronto Parking Authority net revenue to be remitted to the City of Toronto, while a longer-term fiscal and governance review is underway, and in recognition of the actions detailed in Parts 1a to 1e above.

3. Directed the President, Toronto Parking Authority, to fulfill any further requirements of the City of Toronto’s insurance underwriting process and execute any administrative tasks including registration of vehicles under the City of Toronto for the purposes of providing automobile liability insurance for Toronto Parking Authority vehicles, as applicable.

4. Requested the President, Toronto Parking Authority, to continue to support the City of Toronto as it relates to its longer-term fiscal and governance review in identifying potential opportunities, including:

a. Inclusion in additional City-wide corporate programs;

b. A comprehensive review of the Toronto Parking Authority’s current retained earnings, which may result in a reduction to the amount of City debt required, and/or may allow for additional funding to be added to the 10-Year Capital Plan for Toronto Parking Authority;

c. Inclusion of Toronto Parking Authority’s planned and unfunded future capital projects in the City’s Capital Prioritization Framework, to ensure that projects, and specifically unfunded state of good repair needs, are considered and prioritized against other City of Toronto capital funding requirements; and

d. Any other opportunities identified by the Toronto Parking Authority that may require the support of the City of Toronto to explore and implement. 

Scott Collier, President, Toronto Parking Authority gave a presentation on Toronto Parking Authority - 2026 Operating Budget and 2026-2028 Capital Budget.

The purpose of this report is to provide the Board of Directors with Management’s recommended 2026 Operating Budget and 2025 – 2027 Capital Budget.

Building off a strong performance through the first two quarters of 2025, Management is forecasting full year net income of $45.5 million which is +$3.6 million better than Plan. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) forecast of $57.9 million is -$2.9 million versus plan.  

Revenues are forecasted at a historic high of $177.3 million which is -$5.4 million versus plan driven by soft transaction performance in our parking portfolio. This was due in part to the lengthy snow event in February that closed 47% of our on-street inventory for snow removal resulting in 371 thousand fewer transactions. The Bike Share system drove favourable revenues of $1.6 million in 2025 which has mitigated in part some of the parking softness.  

Operating expenses are forecasted at $119.4 million which is $2.4 million lower than plan driven by disciplined cost management of discretionary costs, head count and favourability on municipal taxes and volume-related costs. 

Toronto Parking Authority 2025 capital delivery of $49.9 million includes expanding Bike Share Toronto across all 25 wards and the Toronto Islands, adding 750 bikes and 180 stations. To improve revenue performance at off-street facilities, management modestly advanced the EV charging network with 86 new chargers, increasing the total to 547 citywide. Investments also focused on reducing the State of Good Repair (SOGR) backlog through targeted car park upgrades. Additional service enhancements include modernization of equipment, customer experience, and data insights. These initiatives are guided by our multi-year capital strategy which supports our strategic priorities.