Item - 2026.TTC15.8

The TTC Board:

1. Approved the 2026 Capital Budget in-year budget adjustments to offset projects that have had accelerated spending by $152.5 million with projects that have experienced delays and lower spending by $152.5 million, with no debt impact, as outlined in Appendix 4 of this report.

2. Approved expenditure and funding adjustments to the TTC’s 2026-2035 Capital Budget and Plan for the Purchase of Buses Program by amending the 2026 Capital Budget by $71.5 million and the 2027-2028 cash flow funding estimates by $89.7 million, $161.2 million total, for the procurement of 200 Hybrid Buses project to align with the incremental Federal funding through the Canada Public Transit Fund and the estimated project delivery schedule.

3. Approved expenditure and funding adjustments to the TTC’s 2026-2035 Capital Budget and Plan for the Equipment Program by amending the 2026 Capital Budget by ($20.4) million and the 2027-2029 cash flow funding estimates by $57.9 million, $37.5 million total, for the installation of 227 Bus Charging Systems project, to align with the incremental Federal funding through the Canada Public Transit Fund and the estimated project delivery schedule.

4. Authorized the recommended budget adjustments noted in Recommendations 1 to 3, and in the TTC’s 2026-2035 Capital Budget and Plan, be included in the TTC’s Capital Variance Report submission for the four months ended April 30, 2026, for City Council consideration and approval.

5. Approved a 2026 Operating Budget in-year adjustment of $0.1 million gross ($0.1 million net) to fund Plant Maintenance costs associated with the installation of benches on Line 2, following City Council approval.

6. Adopted the recommendations contained in Confidential Attachment 1 and authorize that the information remain confidential as it contains information about a position, plan, procedure, criteria or instruction to be applied to commercial negotiations carried on or to be carried on by or on behalf of the City or local board.

This report sets out the operating and capital financial results for TTC Conventional and Wheel-Trans services and provides a status update of the TTC’s major capital projects for the period ended April 26, 2026. Financial projections to year-end 2026 are also provided. This is the first of four quarterly financial updates provided annually to the TTC Board for the fiscal year and subsequently submitted to the City of Toronto for consolidation with their financial variance reporting to City Council.

For the period ended April 26, 2026, the TTC reported a net year-to-date unfavourable operating variance of $12.6 million (2.5%), consisting of an unfavourable revenue variance of $22.1 million (5.1%), which is partially offset by $9.5 million (1.0%) in lower expenditures.

For the full year, the TTC’s 2026 Operating Budget of $3.046 billion gross and $1.499 billion net, is projected to be $64.3 million net unfavourable to budget (4.3%), driven by an unfavourable revenue variance of $30.0 million (1.9%) and an under-expenditure of $34.3 million (1.1%).

For the period ended April 26, 2026, the TTC’s capital expenditures totalled $365.1 million, representing a spending rate of 93.2% when compared to the year-to-date planned (calendarized) budget of $391.8 million. Of the total capital expenditures incurred to date, $357.3 million or 93.5% of the base capital program’s planned budget of $382 million was spent and $7.8 million or 79.4% of the $9.8 million planned budget for transit-expansion-related projects was spent.

When comparing year-to-date spending to the total approved 2026 Capital Budget, 21.7% was spent to the end of Period 4 for the TTC base capital program and 26.3% for transit-expansion-related projects, resulting in an overall spending rate of 21.8% for the four-month period.

By year-end, the TTC’s capital spending is projected to be in the order of $1.638 billion, representing an overall 97.9% spending rate, with the TTC’s base capital program projected to expend $1.609 billion or 97.9% and transit-expansion-related capital expenditures projected to reach $28.1 million or 95.0%.

The year-to-date results and year-end projections reflect the recommended adjustments to the 2026 Capital Budget and future year cash flows in the 10-Year Capital Plan, as outlined in Appendix 4 of this report. This accounts for projects that have had accelerated spending and projects that have experienced some delays and, therefore, lower spending. These adjustments reflect the ongoing monitoring of capital delivery and spending by TTC staff to ensure capital funding is maximized during the year.