Item - 2026.EX33.6

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve in-year budget adjustments to the 2025-2034 Approved Capital Budget and Plan as detailed in Appendix 2.

2. City Council direct that the confidential information contained in Confidential Attachment 1 remain confidential at this time, as it relates to a proposed or pending acquisition or disposition of land by the City, potential litigation that affects the City, information explicitly supplied in confidence between the Canada Mortgage and Housing Corporation and the City of Toronto which may only be made public in accordance with the funding agreement with Canada Mortgage and Housing Corporation and a position, plan, procedure, criteria or instruction to be applied to negotiations carried on or to be carried on by or on behalf of the City, and authorize that Confidential Attachment 1 be made public at the discretion of the Deputy City Manager, Development and Growth Services following the completion of land transactions, in accordance with agreements between the City and the federal government, and the resolution of potential litigation that affects the City.

The purpose of this report is to provide City Council with the City of Toronto’s capital spending for the twelve-month period ended December 31, 2025. Furthermore, this report seeks Council's approval for in-year budget adjustments to the 2025 Approved Capital Budget and Plan to align with the year-end funding requirements.

Table 1 below summarizes the City's 2025 actual capital expenditures compared with the 2025 Approved Capital Budget for the twelve-month period ended December 31, 2025.

Table 1: Capital Variance Summary for the Period Ended December 31, 2025

In 2025, the City’s spending rates reflect continuous improvement in actual capital delivery, building on budgeting enhancements made since 2023. The capital spending of $5.603 billion with a spending rate of 83.7 percent is up compared to 2024, when capital expenditures were $4.740 billion reflecting a spending rate of 73.8 percent. The spending rate is defined as the actual capital expenditures as a percentage of the full-year budget including in-year budget adjustments and carry forward funding from prior years' unspent budget.

The improved spending rate is largely attributed to the City’s enhanced budget planning processes and focus on capital delivery prioritization, which has enabled City Divisions and Agencies to accelerate project timelines and enhance overall execution. The achievements were made possible by the coordinated efforts of City Council, Divisions, and Agencies.

Capital expenditures totalled $5.603 billion against the $6.696 billion 2025 Approved Capital Budget.

Appendix 1 summarizes the 2025 actuals in comparison to the total Capital Budget by City Divisions and Agencies.

Appendix 2 contains recommended in-year capital budget adjustments to the 2025 Capital Budget, including $57.5 million of net accelerations from future years of the ten-year plan into 2025 with no overall impact to project costs.

Appendix 3 summarizes the projects/subprojects completed and/or filed for closures in 2025, with $798.609 million actual spending on a total budget of $818.653 million, resulting in $20.044 million savings.

Appendix 4 is attached for information and outlines project cash flow accelerations approved by the Chief Financial Officer and Treasurer under delegated authority, in accordance with Recommendation 17 of the Report CC38.1 at City Council Meeting. These accelerations, totalling $225 million, were operationally required to enable implementation of the 2026 Budget in 2025 without impact on total project costs. In accordance with Recommendation 18 of the same report, these cash flow accelerations are reported to Council for information through the Year-End Variance Report.