Item - 2025.TTC3.14

The TTC Board:

1. Approved the 2024 Capital Budget in-year budget adjustments to offset projects that have had accelerated spending by $79.88 million with projects that have experienced delays and lower spending by $79.88 million with no debt impact, as outlined in Appendix 4 of this report.

2. Authorized the recommended budget adjustments noted in Recommendation 1 above and the TTC’s 2024-2034 Capital Budget and Plan to be included in the TTC’s Capital Variance Report submission for the 12 months ended December 31, 2024, for City Council consideration and approval.

3. Authorized that the information contained in Confidential Attachment 1 remain confidential in its entirety.

This report sets out the preliminary operating and capital financial results for TTC Conventional and Wheel-Trans services. It also provides a status update of the TTC’s major capital projects for the year ended December 31, 2024.

Preliminary year-end actual expenditures indicate that total spending will result in an underspend of $54.86 million net, when compared to the TTC 2024 Operating Budget of $2.641 billion gross and $1.302 billion net. A total of $71.22 million in under-expenditures is driven by the deferred opening of Line 5 Eglinton and Line 6 Finch West, fully offset by reductions in Provincial Funding and Reserve Draws planned to fund Line 5 and Line 6 mobilization activities. The net favourability was also driven by workforce vacancies experienced in the first six months of the year, lower health and dental claims driven by workforce vacancies and lower utilization, delayed IT software implementation, favourable IT contract pricing, lower diesel pricing, and higher passenger revenue due to higher TTC Conventional average fare per ride.

Based on preliminary year-end results, the TTC’s base capital expenditures totalled $1.271 billion, representing a year-end spending rate of 94.8% of the 2024 Approved Capital Budget. In addition, the TTC also incurred $19.35 million or 95.8% of the 2024 Approved Capital Budget to continue the capital work program for transit-expansion-related initiatives. Combined, the TTC’s preliminary year-end spending reached $1.290 billion, representing a 94.8% spending rate overall.

The preliminary financial results are subject to the year-end audit process, and the audited financial statements will be presented to the Audit and Risk Management Committee on June 9, 2025, and the TTC Board on June 18, 2025.