Item - 2025.PR12.2

The President, Toronto Parking Authority recommends that: 

1. The Board of Directors of Toronto Parking Authority approve the proposed 2026 Operating Budget and 2026 - 2028 Capital Budget for Toronto Parking Authority as presented in Attachment 1 to this report. 

The Board received the proposed budget for information at its meeting on October 16, 2025. The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors with Management’s recommended 2026 Operating Budget and 2025 – 2027 Capital Budget in further detail. Formal approval will be requested at the December 5, 2025 Board meeting where Management will also present the 2026 Annual Operating Plan. This timeline affords both the Board and Management sufficient opportunity to discuss the proposed budget and the 2026 Annual Operating Plan, while adhering to the City’s Budgetary process. 

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's 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. 

In 2026, Management is budgeting a new historic revenue performance of $181.3 million (+$4.0 million versus 2025 forecast).  

2026 Full year Earnings before Interest, Taxes, Depreciation and Amortization plan of $57.7 million is -$0.2 million versus 2025 Forecast and Net income of $42.3 million; -$3.2 million versus 2025 Forecast.  

The 2026 Budget excludes any pricing adjustments as Toronto Parking Authority continues to partner with the City on taking a longer-term view of the P&L recognizing the challenges of affordability across the city.   

Toronto Parking Authority’s annual distribution to the City of Toronto for the 2026 financial year is budgeted to be $31.8 million; + $0.3 million better than 2025 plan.