Item - 2026.BU11.1

The Budget Committee:

1.  Deferred consideration of item BU11.1 to the January 23, 2026 meeting of the Budget Committee.

2.  Requested budget briefing notes as follows:

Children's Services

1. Request the General Manager, Children's Services to provide a briefing note on:

a. the reason(s) for the number of subsidies not meeting the targets set out by City Council, and the reason(s) for the lower funding for children with disabilities than in past years.

 
City Manager Services

2. Request the City Manager to provide a briefing note summarizing the budget allocated towards the prevention and eradication of Intimate Partner Violence across all divisions.

Engineering and Construction Services

3. Request the Chief Engineer and Executive Director, Engineering and Construction Services, in consultation with the General Manager, Transportation Services, to provide a briefing note outlining the 2025 actual and 2026 projected financial impact of uncertainty related to cycling infrastructure, along with the impact on 2025 actual and 2026 projected delivery rates, and on cyclist safety and safe mobility across Toronto.

Social Development

4. Request the Executive Director, Social Development, to a provide briefing note:

a. outlining programs affected in 2026 by the loss of Federal funding and list those programs that come to an end in 2026, and those that will be covered by City-funds in 2026, but are at risk of closure.

b. outlining the number of eligible but unfunded applications in the Multi-Unit Residential Acquisition program, and the estimated cost to fund them.

c. including the total new funding in the 2026 Budget being invested to support youth.

Solid Waste Management Services

5. Request the General Manager, Solid Waste Management Services, to provide a briefing note on any cost savings, staffing changes, and ancillary operational challenges as a result of the transition of Blue Bin collection.

January 14, 2026

The Deputy City Manager, Community Development and Social Services, gave a presentation on 2026 Operating Budget and 2026-2035 Capital Budget and Plan for the Community Development and Social Services Group.

The Deputy City Manager, Infrastructure Services, on 2026 Operating Budget and 2026-2035 Capital Budget and Plan for the Infrastructure Services Group.

The Deputy City Manager, Development and Growth Services, on 2026 Operating Budget and 2026-2035 Capital Budget and Plan for the Development and Growth Services Group.

The President and Chief Executive Officer, Toronto Community Housing Corporation, and the Chief Financial Officer, Toronto Community Housing Corporation, gave a presentation on the Toronto Community Housing Corporation 2026 Operating Budget and 2026-2035 Capital Budget and Plan.

January 15, 2026

The Deputy City Manager, Community and Emergency Services, on 2026 Operating Budget and 2026-2035 Capital Budget and Plan for the Community and Emergency Services Group.

The Chief Financial Officer, Toronto Transit Commission, gave a presentation on the Toronto Transit Commission 2026 Operating Budget and 2026-2035 Capital Budget and Plan.

The Chief of Police, Toronto Police Service, the Executive Director, Toronto Police Services Board, the Chief Administrative Officer, Toronto Police Service, and the Director, Information Management, Toronto Police Service, gave a presentation on the Toronto Police Service 2026 Operating Budget and 2026-2035 Capital Budget and Plan.

January 16, 2026

The Deputy City Manager, Corporate Services, gave a presentation on 2026 Operating Budget and 2026-2035 Capital Budget and Plan for the Corporate Services Group.

The Budget Committee will consider and make recommendations to the Mayor on the 2026 Capital and Operating Budgets.

The following schedule has been established for the consideration of the 2026 Capital and Operating Budgets:

Wednesday, January 14, 2026

Service Group Presentation - Community Development and Social Services:

Children's Services
Seniors Services and Long-Term Care
Social Development
Toronto Employment and Social Services

Service Group Presentation - Infrastructure Services:

Engineering and Construction Services
Municipal Licensing and Standards
Policy Planning, Finance and Administration
Solid Waste Management Services
Strategic Capital Coordination Office
Toronto Water
Transit Expansion
Transportation Services

Service Group Presentation - Development and Growth Services:

City Planning
Development Review
Housing Secretariat
Toronto Building
Waterfront Revitalization Initiative

Agency - Presentation:

Toronto Community Housing Corporation (TCHC)

Thursday, January 15, 2026

Accountability Officers - Questions and Answers only - no presentations:

Office of the Auditor General
Office of the Integrity Commissioner
Office of the Lobbyist Registrar
Ombudsman Toronto

Service Group Presentation - Community and Emergency Services:

Economic Development and Culture
Parks and Recreation
Toronto Emergency Management
Toronto Fire Services
Toronto Paramedic Services
Toronto Shelter and Support Services

Agencies - Presentation:

Toronto Transit Commission

Toronto Police Service

Agencies - Questions and Answers only - no presentations:

Toronto Police Services Board
Toronto Police Services Parking Tags Enforcement and Operations

Friday, January 16, 2026

Service Group Presentation - Corporate Services:

Customer Experience
Corporate Real Estate Management
Environment, Climate and Forestry
Fleet Services
Toronto Cyber Security
Technology Services

Finance and Treasury Services, City Manager Services, and Other Services - Questions and Answers only - no presentations:

Office of the Chief Financial Officer and Treasurer
Financial Operations and Control
City Manager Services
FIFA
Legal Services
Court Services
City Clerk's Office
City Council
Office of the Mayor

Agencies - Questions and Answers only - no presentations:

Toronto Public Library
Toronto Public Health
Arena Boards of Management
Association of Community Centres
CreateTO
Exhibition Place
Heritage Toronto
TO Live
Toronto Atmospheric Fund
Toronto Seniors Housing Corporation (TSHC)
Toronto Parking Authority (rate)
Toronto and Region Conservation Authority
Toronto Zoo
Sankofa Square (formerly Yonge-Dundas Square)

This report presents to Budget Committee the proposed 2026 Operating Budget for the Auditor General’s Office (the "Office").

This report presents to Budget Committee the proposed 2026 Operating Budget for the Office of the Integrity Commissioner.

This report presents to Budget Committee the proposed 2026 Operating Budget for Ombudsman Toronto.

This report presents to Budget Committee the proposed 2026 Operating Budget and 2026-2035 Capital Budget and Plan for the Toronto Lobbyist Registrar.

At its Meeting held on December 10, 2025, the Toronto Police Service Board (Board) considered the following 2026 budget request reports received from the Board’s Budget Committee:

- Toronto Police Service - 2026 Operating Budget Request;
- Toronto Police Service - 2026-2035 Capital Program Request;
- Toronto Police Service Parking Enforcement Unit - 2026 Operating Budget Request; and,
- Toronto Police Service Board - 2026 Operating Budget Request.

The Board approved the foregoing reports and requested that copies of the draft Minutes be forwarded to the City’s Budget Committee for consideration. The Board also directed that its decisions be transmitted to the City’s Chief Financial Officer for information.

For ease of reference, below are the substantive recommendations related to this year’s City Budget Process that the Board approved yesterday, with the effect that all four budget requests listed above were approved:

Toronto Police Service - 2026 Operating Budget Request

Approve the Toronto Police Service (Service) 2026 net operating budget request of $1,432.9 Million (M), a $93.8M or 7.0 percent increase over the 2025 approved budget for consideration.

Toronto Police Service - 2026-2035 Capital Program Request

Approve the Toronto Police Service (Service) 2026-2035 Capital Program at a 2026 debt request of $97.2 Million and gross amount of $126.8 Million (excluding cash flow carry forwards from 2025), and a total of $1,064 Million debt and $1,272.2 Million gross for the 10-year program.

Toronto Police Service Parking Enforcement Unit - 2026 Operating Budget Request

Approve the Toronto Police Service Parking Enforcement Unit’s (P.E.U.) 2026 net operating budget request of $63.9 Million, a 7.6 percent increase over the 2025 approved budget.

Toronto Police Services Board - 2026 Operating Budget Request

Approve the Board’s 2026 net operating budget request of $2,642.3 thousand, which is a $98.9 thousand or 3.9 percent increase over the 2025 approved budget for consideration.

Copies of all four reports approved by the Board, as well as a draft set of Minutes from the Board meeting are enclosed.

At its meeting on September 15, 2025, the Board of Health considered item HL27.1 and made recommendations to the Budget Committee.

Summary from the Report (September 12, 2025) from the Acting Medical Officer of Health:

This report outlines the Toronto Public Health (TPH) 2026 Operating Budget Submission for consideration by the Board of Health. Toronto Public Health's 2026 Operating Budget Submission is $316,267.7 thousand gross, $112,527.5 thousand net and 1,847.5 positions.

Toronto Public Health is intending to achieve the City's affordability target, apart from requests to increase its operating budget to strengthen and expand the Student Nutrition Program.

This 2026 Operating Budget Submission is higher than the 2025 Operating Budget by $14,776.3 thousand gross, $18,563.9 thousand net with 2.0 less positions. The increase in Toronto Public Health's year-over-year budget is predominately attributed to costs to strengthen and expand the City's Student Nutrition Program, and inflationary and cost of living adjustment (COLA) increases for staff.

Additional information on the change between the 2026 Operating Budget Submission and the 2025 Operating Budget is available in Table 1 in this report.

The 2026 Operating Budget Submission includes in-year changes, and base changes as detailed in the recommendations in this report.

At its meeting on September 15, 2025, the Board of Health considered item HL27.2 and made recommendations to the Budget Committee.

Summary from the Report (September 4, 2025) from the Acting Medical Officer of Health:

This report provides an overview of Toronto Public Health's 2026 Capital Budget and 2027-2035 Plan Request.

Toronto Public Health is recommending a 2026 Capital Budget of $16.084 million, including 2026 Budget of $12.650 million and future year commitments of $3.434 million. Toronto Public Health is also recommending a 2027-2035 Capital Plan of $16.854 million for future year estimates. The proposed 2026-2035 Capital Budget and Plan will provide funding for nine (9) projects:

1. Electronic Medical Record

2. Inspection Management Implementation

3. Mobile Dental Van

4. Downtown Homelessness, Addiction Recovery and Treatment (HART) Hub

5. Student Nutrition Program-- Universal Morning Meal Program

6. Socio-Demographic Data Collection and Reporting

7. e-Consent Portal

8. Inspection Management Program

9. Workload Management and Scheduling

At its meeting on Wednesday, January 7, 2026, the TTC Board considered the attached report entitled “Recommended 2026 TTC Conventional and Wheel-Trans Operating Budgets”.

The Board adopted the following:

It is recommended that the TTC Board:

1. Approve the recommended 2026 Operating Budget totalling $3.028 billion in gross expenditures, $1.547 billion in revenues and a net funding requirement of $1.481 billion for the TTC comprising the following services, as summarized in Appendix A of this report:

a. 2026 TTC Conventional Operating Service Budget of $2.826 billion in gross expenditures, $1.537 billion in revenues and a net funding requirement of $1.289 billion; and,

b. 2026 Wheel-Trans Operating Budget of $201.6 million in gross expenditures, $10.3 million in revenues and a net funding requirement of $191.4 million.

2. Approve a 2026 year-end Operating workforce complement of 15,299 positions.

3. Approve the implementation of monthly fare capping through PRESTO, effective September 1, 2026, whereby customers who pay per trip will not be charged for additional trips after completing 47 paid rides within a calendar month, consistent with the equivalent value of a Monthly Pass.

4. Approve the related fare policy and product changes outlined in Appendix E of this report that are required to support monthly fare capping, including:

a. Aligning pass products with the new capped structure; and

b. Phasing out or restructuring any products that duplicate benefits of the cap.

5. Direct the Chief Executive Officer to undertake all activities necessary to implement monthly fare capping in collaboration with Metrolinx, including system configuration, customer-facing materials, operational readiness, and communications.

6. Direct staff to report back to the TTC Board following the first year of monthly fare capping with an assessment of impacts on ridership, revenue, equity outcomes, customer experience, and any recommended fare policy adjustments.

7. Reaffirm requests to the Federal and Provincial Governments for a tri-partite development of a sustainable, long-term funding model for public transit capital and operation's needs.

8. Delegate authority to the Chief Executive Officer to execute any transfer payment and / or contribution agreements required with the Province of Ontario and / or the Government of Canada to receive intergovernmental funding for priority projects and programs, subject to terms and conditions satisfactory to the TTC’s General Counsel.

9. Forward this report to the City Budget Committee and the City Manager as the official 2026 Operating Budget submission for the Toronto Transit Commission.

10. Given that:

- The TTC budget is under immense and growing pressure,

- It costs the TTC about $20 million per year to accept cash fares ($10 million in operating costs and $10 million in lost revenue from fare cheating (partial payment)),

- Many transit systems in Ontario and around the world no longer accept cash fares, and

- Since 2023, Open Payment has meant that multiple payment alternatives are available to ensure equity and accessibility for TTC customers who don’t have easy access to a PRESTO outlet, including prepaid credit cards that are widely available without credit checks or bank accounts,

The TTC should consult the public on their preferred option for spending this $20 million per year, including options such as:

- continuing to accept cash fares,

- expanding Fair Pass, or

- improving wayfinding,

and report back to the TTC Board as part of the first quarter of 2027 Fare Modernization Update with recommendations on whether, when and how to fairly phase out cash fares.

11. The TTC Board directs that the Chief Executive Officer work with the City Manager to explore and report back to the Strategic Planning Committee as part of the 2027 budget process and in advance of the 2027 budget with opportunities to strengthen the accountable and transparent relationship between the TTC and the City of Toronto, including consideration of mechanisms to formalize agreements between both entities on key performance indicators, verification/auditing, service levels, safety and customer experience.

At its meeting on Wednesday, January 7, 2026, the TTC Board considered the attached report entitled “Recommended 2026-2035 Capital Budget and Plan, 15-Year Capital Investment Plan, and Real Estate Investment Plan Update”.

The Board adopted the following:

It is recommended that the TTC Board:

1. Endorse the TTC 2026-2040 Capital Investment Plan of $53.994 billion, as outlined in Attachment 1 of this report.

2. Endorse the TTC 2026-2040 Real Estate Investment Plan Update, including the implementation timeline, as outlined in Attachment 2 of this report.

3. Approve a 2026 Capital Budget of $1.635 billion and future year planned estimates of $15.022 billion for a total TTC 2026-2035 Capital Budget and Plan of $16.657 billion, comprising the following, as outlined in Appendix B of this report:

a. A 2026 Capital Budget of $1.606 billion and future year planned estimates of $14.916 billion, for a total TTC 2026-2035 Base Capital Budget and Plan of $16.522 billion; and

b. A 2026 Capital Budget of $28.7 million and future year planned estimates of $106.3 million, for a total TTC 2026-2035 Capital Budget and Plan of $135.0 million for Transit-Expansion-Related Projects.

4. Approve a 2026 year-end capital workforce complement of 3,345 positions, reflecting an increase of 60 capital positions, as summarized in Appendix D.

5. Reaffirm requests to the Federal and Provincial Governments for a tri-partite discussion on the development of a sustainable, long-term funding model for public transit capital and operations needs.

6. Delegate authority to the Chief Executive Officer to execute any transfer payment and / or contribution agreements required with the Province of Ontario and / or Government of Canada to receive intergovernmental funding for priority projects and programs and amend the 2026-2035 Capital Budget and Plan to include the funding, subject to terms and conditions satisfactory to the TTC’s General Counsel.

7. Forward this report to the City Budget Committee and the City Manager as the official 2026-2035 Capital Budget and Plan submission for the Toronto Transit Commission.