Item - 2026.PA21.2

The President, Toronto Parking Authority recommends that: 

1. The Board of Directors of Toronto Parking Authority receive the proposed 2027 Operating Budget and 2027 - 2036 Capital Budget for Toronto Parking Authority as presented in Attachment 1 to this report. 

The purpose of this report is to present Management’s proposed 2027 Operating Budget and 2027-2036 Capital Budget to the Board of Directors of the Toronto Parking Authority for its initial review. The proposed budget has been submitted to the City of Toronto as part of its budget review process and will be brought forward to the Board in December 2026 for approval, after which it will proceed to Toronto City Council for final consideration and approval.

Building off a strong performance through the first eight months of 2026, Management is forecasting full year operating income of $63.8 million which is +$2.7 million or 4.4 percent better than budget.

Revenues are forecasted to reach a historic high of $184.5 million, exceeding budget by $1.5 million (+0.8 percent). Total parking revenue of $161.0 million, representing 87 percent of overall revenue, is in line with budget and is up $3.3 million (+2.0 percent) from the prior year. The Off-Street parking portfolio remained resilient, offsetting lower On-Street parking revenue resulting from two significant winter snow events and FIFA-related road closures. Record revenue performance was further supported by strong growth in the Bike Share portfolio and higher finance income. Bike Share remains on track to achieve its ridership target with an additional 0.9 million trips, while successfully supporting FIFA events through enhanced valet operations.

Operating expenses are forecasted at $120.7 million which is $1.2 million lower than budget mainly due to one-time managed service provision release on salaries, headcount management, and savings from modernizing parking equipment.

Toronto Parking Authority 2026 capital delivery is expected to exceed 95 percent spend rate of the budgeted $47.1 million capital budget with key investments in 950 PayByPlate equipment, parking access revenue control at over 20 sites, data analytics, state of good repair of scheduled car parks, and communication connectivity within car parks. These initiatives are within the rolling three-year capital envelope supporting our operating imperatives. 

In 2027, Management is budgeting a new historic revenue performance of $192.1 million (+$7.6 million or +4.1 percent versus 2026 forecast; +$9.0 million or 4.9 percent versus 2026 budget).  

2027 Full year Operating Income budget of $65.4 million (+$1.6 million or +2.5 percent versus 2026 Forecast; +$4.3 million or +7.0 percent).

The 2027 budget includes a proposed parking pricing adjustment as Toronto Parking Authority (TPA) continues to partner with the City on options available to align on City funding requirements. These proposals are reflective of annual CPI costs absorbed into operating costs and annual capital investments.

Toronto Parking Authority’s annual distribution, equivalent to 100 percent of operating income, to the City of Toronto for the 2027 financial year is budgeted to be $65.4 million; + $4.3 million better than 2026 budget.