Item - 2026.TTC12.2

The TTC Board:

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

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

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

5. Reaffirmed 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. Delegated 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; and;

7. Forwarded 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.

John Montagnese, Interim Chief Financial Officer, Mark Del Vecchio, Head, Financial Planning and Analysis, and Erik Franc, Manager, Performance Reporting, delivered a presentation on this item.

This report presents the recommended 2026-2035 Capital Budget and Plan for the TTC. It seeks the Board’s approval of a 2026 Capital Budget and 2027-2035 planned estimates to fund the acquisition, rehabilitation and renewal of the TTC’s assets required to deliver transit service in Toronto. This report also seeks the Board’s endorsement of the TTC’s updated 2026-2040 Capital Investment Plan and companion 2026-2040 Real Estate Investment Plan.

2026-2035 Capital Budget and Plan Highlights

The 2026-2035 Capital Budget and Plan totals $16.657 billion, including a 2026 Capital Budget of $1.635 billion. This 10-year Capital Plan allocates 63% toward maintaining transit in a state of good repair, 4% for safety and legislated requirements, and 33% for service improvement and growth-related projects.

The prioritization of funding within the 2026-2035 Capital Budget and Plan has been developed in alignment with the Prioritizing TTC Asset State of Good Repair to Keep the System Moving Reliably: Outlook for Capital Budget 2026 report, presented at the Strategic Planning Committee meeting on September 4, 2025. In this report, the most immediate five-year needs for Health and Safety, Legislative, and State of Good Repair were identified, with the most critical items including:

The recommended 2026-2035 Capital Budget and Plan therefore adds $1.736 billion in incremental funding to address outstanding needs, with $1.362 billion (or 79%) being dedicated to crucial State of Good Repair, and Safety and Legislative needs, including:

• $302.8 million for subway, bus, and streetcar vehicle overhaul programs
• $168.8 million for crucial subway and surface track replacement
• $253.4 million for traction power, signaling, communications and power distribution asset replacement/rehabilitation
• $141.6 million for facility rehabilitation/modifications

Addressing State of Good Repair (SOGR) is essential for service reliability, which is why the TTC continues to place the highest priority on meeting health and safety, legislative and state-of-good-repair needs first. However, the scale of SOGR investment still required is crowding out the opportunity to advance needed capacity enhancement investments to keep up with population growth and capture more ridership long term.

While progress has been made in addressing the TTC’s unfunded capital priorities, sustained and predictable funding is still critical to address the remaining capital needs constraints. The Capital Investment Plan (CIP), which lays out the TTC’s capital needs over a 15-year period, is $53.994 billion or $616 million higher than the $53.378 billion identified in the 2025 CIP. Of the $53.994 billion CIP, unfunded capital investments amount to $37.336 billion over the 15-year planning horizon, highlighting a significant gap in long-term financial support.

Emphasis must continue to be placed on the requirement for a tri-partite approach to developing a sustainable public transit funding model that is predictable and supports the long-term viability of the TTC.