Agenda

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Declarations of Interest under the Municipal Conflict of Interest Act

Confirmation of Minutes - July 16, 2025

Speakers/Presentations - The speakers list will be posted online at 8:30 a.m. on September 29, 2025.

Communications/Reports

The City Manager recommends that:  

1. The Executive Committee receive this report for information.

In 2024, the City Manager’s Office launched the Listening to Toronto public opinion survey to gather insights on a range of topics, including satisfaction with select City services, perceptions of quality of life in Toronto, and residents’ experiences interacting with the City. Now in its second year, the survey builds on the initial baseline findings and introduces new areas of focus based on emerging priorities.

The 2025 Listening to Toronto survey was conducted by Ipsos LP between August 1 and August 18, 2025. This year’s results offer a valuable comparison to the 2024 baseline, enabling the City to track progress over time. In addition to benchmarking performance, the findings complement data collected through 311 and other City-led initiatives, contributing to a more comprehensive understanding of service delivery and resident needs.

There are no current or known future year financial implications resulting from the adoption of the recommendation contained in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact statement.

The Executive Director, Housing Development Office and Executive Director Housing Secretariat recommend that:

1. City Council authorize the Executive Director, Housing Development Office, or their designate, in consultation with the Deputy City Manager, Development and Growth Services, to negotiate and execute, on behalf of the City, a framework agreement and any amendments ("the Framework Agreement") and any related agreements, substantially on the major terms and conditions and with the parties set out in Confidential Appendix A to the report (September 15, 2025) from the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat, and such other terms satisfactory to Executive Director, Housing Development Office, in consultation with Deputy City Manager, Development and Growth Services, and in a form approved by the City Solicitor.

2. City Council authorize the Executive Director, Housing Development Office, or their designate, in consultation with the Executive Director, Housing Secretariat, and the Deputy City Manager, Development and Growth Services, to negotiate and execute, on behalf of the City, an all party agreement and any related agreements and amendments ("the All-Party Agreement"), substantially on the major terms and conditions and with the parties set out in Confidential Appendix A to the report (September 15, 2025) from the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat, and such other terms satisfactory to Executive Director, Housing Development Office, in consultation with the Executive Director, Housing Secretariat and the Deputy City Manager, Development and Growth Services, and in a form approved by the City Solicitor.

3. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, in consultation with the Executive Director, Housing Development Office, to negotiate and execute, on behalf of the City, long-term nominal rent leases with each of the affordable housing providers selected by the Executive Director, Housing Secretariat through the request for proposals issued for this project (the “Affordable Housing Providers”), substantially on the major terms and conditions set out in Attachment 1 to the report (September 15, 2025) from the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat, and such other terms satisfactory to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Development Office, and in a form approved by the City Solicitor, and conditional upon the premises to be leased to such Affordable Housing Providers having been declared surplus and all steps necessary to comply with the City’s real estate disposal process as set out in Article 1 of Chapter 213 of the City of Toronto Municipal Code having been complied with, all on or before the date that Council considers this recommendation.

4. City Council authorize the Executive Director, Corporate Real Estate Management, or their designate, to negotiate and execute on behalf of the City the reciprocal/cost sharing agreement(s) contemplated in the Framework Agreement and any agreements related to the acquisition and leasing out of land in Quayside Phase 1 by the City on such terms as are satisfactory to the Executive Director, Corporate Real Estate Management, and in a form approved by the City Solicitor.

5. City Council authorize the Chief Procurement Officer to award and the Executive Director, Housing Development Office, or their designate, in consultation with Chief Financial Officer and Treasurer and Executive Director, Housing Secretariat, to negotiate and execute, on behalf of the City, any necessary non-competitive agreements with a value exceeding $500,000 for which Standing Committee and City Council approval would normally be required under City of Toronto Municipal Code Chapter 71, Financial Control, and City of Toronto Municipal Code Chapter 195, Procurement, for the provision of professional services needed to carry out any necessary development coordination matters for the development of affordable housing in Quayside - Phase 1, provided that:

a. non-competitive procurement is necessary to meet the timelines related to the development of affordable rental homes in Quayside - Phase 1;

b. the costs are available for, and funded through the Council-approved Housing Secretariat's 10-year Capital Budget and Plan for the Quayside - Phase 1 project; 

c. the terms and conditions of any such agreements are acceptable to the Executive Director, Housing Development Office, and in a form satisfactory to the City Solicitor; and

d. a report summarizing any agreements executed under this authority is submitted to the appropriate Standing Committee and/or City Council for information by Q4- 2026.

6. City Council authorize the Executive Director, Housing Development Office, or their designate, to negotiate and execute, on behalf of the City, an owners representative agreement and any related agreements and amendments, substantially on the major terms and conditions and with the parties set out in Attachment 2 to the report (September 15, 2025) from the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat, and such other terms satisfactory to the Executive Director, Housing Development Office, and in a form approved by the City Solicitor.

7. City Council authorize an exemption from taxation for municipal and school purposes for the affordable rental homes developed on the blocks in Quayside - Phase 1 listed in and for the periods of time described in Table 1 in the Financial Impact section of the report (September 15, 2025) from the Executive Director, Housing Development Office and the Executive Director, Housing Secretariat.

8. City Council authorize the Controller and Chief Accountant to cancel or refund any taxes paid after the effective date of the exemption from taxation for municipal and school purposes as set out in the applicable municipal housing facility agreement (the “Contribution Agreement”).

9. City Council adopt the confidential recommendations in Confidential Attachment 1.

10. City Council direct that the confidential information contained in Confidential Attachment 1, Confidential Appendix A and Confidential Appendix B remain confidential in its entirety, as it outlines a position, plan, procedure, criteria or instruction to be applied to any negotiations carried on or to be carried on by or on behalf of the City; and contains financial information, supplied in confidence to the City of Toronto, which, if disclosed, could reasonably be expected to prejudice significantly the competitive position or interfere significantly with the contractual or other negotiations of a person, group of persons, or organization, and be made public at the discretion of the Deputy City Manager, Development and Growth Services.

Quayside will be a master-planned mixed-use complete community that builds on development in the adjacent East Bayfront lands, and the emerging Keating Channel West Precinct. This 4.9-hectare area on Toronto’s waterfront, located at Queens Quay East and Parliament Street (Quayside Lands), will include new homes, parks and public spaces, new and improved infrastructure, roads and public realm within five new development blocks.

A key driver for Quayside is the provision of affordable rental homes by the City in partnership with Waterfront Toronto and Quayside Impact Limited Partnership (QILP). With the softening of the condo market, the City, QILP, and Waterfront Toronto have worked on an accelerated plan to maximize the number of affordable rental homes that can be delivered in the first phase while prioritizing the delivery of purpose-built rental homes on an expedited basis. As the result, it is estimated that approximately 550 affordable rental homes, including 57% as family units, and approximately 1,200 purpose-built rental homes will be delivered by 2030-31. The Quayside-Phase 1 project supports the City in achieving its HousingTO 2020-20304 Action Plan target to approve 65,000 rent-controlled homes (comprised of 6,500 rent-geared-to-income (RGI), 41,000 affordable rental and 17,500 rent-controlled market homes) by 2030.

Achieving these ambitious housing outcomes within a delivery model involving government, private and non-profit partners will require all partners to participate in innovative ways while responding to changing market conditions. The delivery model for the affordable rental homes in Quayside represents another step in implementing the "Public Developer" approach where the City is taking an intentional leadership role in bringing land, funding, financing, and non-profit and Indigenous housing partners together to maximize public benefit for generations to come. This delivery model will include:

- QILP to transfer stratified lands where affordable rental homes will be built to the City prior to construction start. These lands will then be leased to non-profit housing providers selected to own and operate these affordable rental homes for 99 years ("Affordable Housing Providers");

- QILP (or a related entity) to act as the development manager for the site, and with a construction manager, design and build the affordable and purpose-built rental homes;

- Waterfront Toronto to act as the master developer for the Quayside Lands which includes affordable housing, Quayside infrastructure and public realm, design objectives (buildings and Privately Owned Public Space), ground floor animation objectives and sustainability requirements; and,

- Government partners and Waterfront Toronto to provide funding and financing to the Affordable Housing Providers for the construction of affordable rental homes.

As the housing crisis in the city persists, expediting the delivery plan to ensure construction can start in 2026 has been a key consideration for all partners. The City, through its agreement with the federal government under the Housing Accelerator Fund (HAF), has committed to advancing major development on Toronto’s waterfront, including accelerating the delivery of purpose-built rental, and permanently affordable rental homes in Quayside. The City has already made progress towards meeting its HAF milestones by expediting zoning approvals in July 2024 and increasing the permitted density to allow for taller buildings with reduced building footprints. The current plan also represents an improvement upon the number of affordable rental homes that were identified in the July 2024 re-zoning application, which was 458. The final milestone for this initiative requires building permits be issued for the affordable rental homes in Phase 1 by Q3-2026.

Subject to the approval of this report, the project team will be able to move towards meeting upcoming critical milestones including submitting applications to Canada Mortgage and Housing Corporation (CMHC) for construction financing by October 31, 2025, finalizing required loan agreements with CMHC by Q1-2026, and accelerating construction start timelines.

In partnership with Waterfront Toronto, QILP, and CMHC, the City has been able to make a number of significant advancements in accelerating delivery of purpose-built and affordable rental homes through Quayside - Phase 1. This report and the confidential attachment provide:

- an update on the funding plan for approximately 550 affordable rental homes and required authorities to receive and invest funds, including property tax exemptions for the affordable rental homes;

- an update on the results of the competitive Request for Proposals (RFP) process to select up to four Affordable Housing Providers, and the required authorities to enter into applicable agreements; and,

- an overview of how the City will work with project partners, including the Affordable Housing Providers, CMHC, QILP and Waterfront Toronto as the future owner of stratified affordable rental housing lands and funder for the affordable rental homes.

The Quayside- Phase 1 project will deliver approximately 1,750 affordable rental and purpose-built rental homes through a unique and innovative partnership model with private, non-profit, and government partners. The delivery model, however, is complex due to the interconnectedness of funding and financing sources, various roles and responsibilities of multiple partners, navigating the complex regulatory environment within the accelerated timelines of the project, as well as ongoing market pressures.

The federal and provincial governments, along with the City of Toronto, have recently approved a joint investment plan of $975 million to accelerate the delivery of Waterfront Toronto’s revitalization plan including delivery of new homes in Quayside and Ookwemin Minising (formerly Villiers Island). The tri-partite collaboration continues to be critical to ensure the Quayside - Phase 1 project can be delivered within this unique delivery model and can be replicated for delivery of much needed homes along Toronto's waterfront for current and future residents of the city.

Risks to the financial viability of residential developments are at an all-time high, driven by escalating construction costs, supply chain disruptions alongside foreign trade uncertainties and U.S.-initiated tariff disputes. These factors have led to increased project costs in a volatile market that threaten project timelines and viability.

For the Quayside-Phase 1 project, with a significant number of affordable rental homes contemplated as well as significant sustainability and accessibility targets, a comprehensive funding plan to build the "bricks and mortar" is required with support, participation, and investments from all orders of government and Waterfront Toronto (in addition to the land to deliver affordable rental homes that has already been secured).

The City has worked with Waterfront Toronto, QILP and CMHC to develop a funding plan and to-date, the following funding sources have been identified to support delivery of affordable and purpose-built rental homes in Quayside:

Land Sale Proceeds

Waterfront Toronto owns and controls certain lands along the waterfront. In the Quayside Business and Implementation Plan (Item EX34.11), Waterfront Toronto estimated there would be up to $157 million in total contributions from Quayside Phases 1 and 2 land sale proceeds that could be re-invested toward the capital costs of affordable rental homes delivered in both phases.

The land sale contributions include revenues from Waterfront Toronto land sales as well as all revenues from the sale of Block 3B (in Phase 2) which is made up of City and Toronto Port Lands Company (TPLC) lands that will be re-invested in affordable housing (as capital funding). The ability of Waterfront Toronto, the City and TPLC to commit the full $157 million is contingent on securing Phase 2 land sale revenues.

To assist with the delivery of affordable rental homes in Phase 1, WT has committed approximately $57 million towards the construction costs from the Phase 1 land sale revenues.

Approved City Support for Purpose-built Rental and Affordable Rental Homes

Through 2022.EX34.11, City Council approved a range of financial incentives (waivers of fees for planning applications, building permits and parkland dedication, and exemption of development charges (DCs) and Community Benefit Charges (CBCs)) for affordable rental homes to be built in Quayside (in both Phases 1 and 2).

The Province's adoption of the More Homes Built Faster Act, 2022 (Bill 23) and the Affordable Homes and Good Jobs Act, 2023 (Bill 134) has substantially altered the landscape of financial incentives available for the City to provide to affordable rental housing developments, by introducing provincial exemptions of DCs, CBCs, and parkland dedication fees for developments providing 25 years affordability, at the levels set out by the Provincial government in the Affordable Residential Units Bulletin.

Exemptions of DCs, CBCs and parkland dedication fees for affordable rental homes in Quayside - Phase 1 are currently available through provincial legislation for projects that meet the definition of affordable rental housing or non-profit housing development as outlined in the Development Charges Act. To-date, the planning application fees for the affordable rental homes have been received by the City and the value of the building permit fee exemption is estimated at approximately $678,500 for the approximately 553 affordable rental homes (based on 2025 rates). This value is an estimate and subject to change based on actual rates at the time of building permit application.

Additionally, through the Rental Housing Supply Program via Item EX22.1 "Interim Update - Delivery of Affordable Rental Homes in Quayside - Phase 1", the City has approved up to $44 million in capital funding to support the delivery of affordable rental homes in Phase 1 (currently in the Housing Secretariat's 2025-2034 Capital Budget and Plan).

The City has also approved an indefinite DC deferral and a 15 percent property tax reduction for 35 years for the purpose-built rental homes to be developed by QILP, as part of the implementation of the City's Purpose-built Rental Housing Incentives Stream via Item CC24.16 "Advancing Phase One of the Purpose-built Rental Housing Incentives Stream".

Requesting Property Tax Exemptions for Affordable Rental Homes

This section outlines financial impacts associated with the provision of a property tax exemption, for the duration of affordability, to eligible affordable rental homes in Quayside - Phase 1. As part of the City's Rental Housing Supply Program, eligible affordable rental homes can receive an exemption from taxation for municipal and school purposes for the duration of the affordability period, subject to City Council approval.

This report recommends an exemption of municipal property taxes for a total of 553 affordable rental homes in Quayside - Phase 1 as outlined in Table 1 below. Municipal property tax exemptions are recommended for the terms of the agreement (99 years) with an estimated Net Present Value (NPV) of $53.5 million, based on 2025 municipal tax rates for illustration. These incentives are not a direct payment from the City but rather foregone revenues. Ongoing municipal property tax exemption is conditional on the Affordable Housing Providers entering into a municipal housing facility agreement (the “Contribution Agreement”) with the City and meeting associated requirements through construction and operating years.

Table 1: Summary of Recommended Property Tax Exemptions to Support New Affordable Rental Homes

Funding and Financing Support from CMHC

CMHC offers multiple programs under the National Housing Strategy with funding and favourable financing to support the creation of housing, including affordable rental housing.

Delivery of Quayside-Phase 1 project requires CMHC's funding and financing support under Affordable Housing Fund (AHF) for the affordable rental homes and Apartment Construction Loan Program (ACLP) for the purpose-built rental homes.

As part of an ongoing collaboration with CMHC, QILP has been able to secure ACLP financing for the purpose-built rental homes planned for the Quayside - Phase 1 development.

Delivery of the affordable rental homes will rely on the selected Affordable Housing Providers' ability to secure additional construction funding and financing from CMHC through the AHF. Applications to CMHC are due by October 31, 2025 to meet project timelines.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve in-year budget adjustments to Previously Approved Capital Budget and Plan, as detailed in Appendix 2a and Appendix 2b.

The purpose of this report is to provide City Council with the City of Toronto capital spending for the six-month period ended June 30, 2025, as well as the projected 2025 year-end expenditures. Furthermore, this report seeks Council's approval for in-year budget adjustments to the previously approved Capital Budget and Plan as outlined in Appendix 2a and Appendix 2b of this report.

Table 1 below summarizes the City's 2025 actual capital expenditures compared with the 2025 Approved Capital Budget for the six-month period ended June 30, 2025, and the projected expenditures by year-end, December 31, 2025.

Table 1: Capital Variance Summary

*Note: Includes carry forward funding

The City's actual capital spending for the first six months of 2025 totals $1.850 billion, or 29.6% of the 2025 Approved Capital Budget. This marks an improvement in spending rate compared to the historical average for the same six-month period, which has typically remained below 27%. Capital spending will continue to be monitored, with updates provided in future variance reports.

The capital expenditures in the first six months of 2025 totalled $1.850 billion and year-end expenditures are anticipated to be at $5.238 billion or 83.9% of the total 2025 Adjusted Capital budget.

Appendix 1 summarizes the Year-To-Date spending in the first six months of 2025 and the projected year-end spending rate by City Programs and Agencies.

Appendix 2a includes recommended in-year capital budget adjustments to the 10-Year Capital Budget and Plan. The net total adjustment of $33.795 million reflects an increase of funding by $45.189 which is partially offset by $11.394 reduction of funding. This net adjustment accommodates accelerations of $116.980 million and deferrals of $75.464 million. Furthermore, these adjustments also reflect an overall reduction to debt funding by $6.008 million.

Appendix 2b includes funding changes for various programs that result in a net increase of $3.241 million to prior year cash flows for previously approved Capital Budgets, to align with the actual funding requirements.

The Chief Financial Officer and Treasurer recommends that:

1. City Council approve the budget adjustments and any associated complement changes detailed in Appendix D to amend the 2025 Approved Operating Budget, with no impact on the Net Operating Budget of the City.

2.City Council direct that the Active Benefits Plan for Management/Non-union employees, Accountability Officers and Elected Officials, be amended as outlined in Appendix H to this report and that the Pre-65 Retiree Benefit Plan for Management/Non-union-employees, Accountability Officers and Elected Officials, be amended, where applicable, for employees who retire on or after November 1, 2025.

The purpose of this report is to provide City Council with the Operating Variance for the six months ended June 30, 2025, as well as projections to the year-end, December 31, 2025. This report also requests City Council's approval for amendments to the 2025 Approved Operating Budget that have no impact on the City's Net Budget.

The following table summarizes the year-to-date financial position and year-end projections for the City's Tax-Supported Operations as of June 30, 2025.

Table 1: Tax-Supported Operating Variance Summary 

As detailed in Table 1 above, for the six-month period, Tax-Supported Operations experienced a favourable net variance of $31.7 million. An unfavourable net variance is projected at year-end of $105.4 million. These figures are adjusted for Toronto Building which, consistent with legislation has any achieved surplus allocated to appropriate reserves.

It is important to note that the financial information presented is as of June 30, which is a snapshot in time and the year-end projection is based on current and expected future activities as known and anticipated.

Rate-Supported Programs:

Rate-Supported Programs reported a favourable year-to-date net variance of $19.0 million. At year-end, Rate-Supported Programs are projecting a favourable variance of $44.4 million.

Table 2: Rate-Supported Operating Variance Summary 

The favourable year-to-date variance is driven by all three rate programs: Toronto Water, Toronto Parking Authority and Solid Waste Management Services, with the favourable projections to year-end mainly driven by Toronto Water.

Rate-Supported Programs are funded entirely by user fees that are used to pay for the services provided and the infrastructure to deliver them. Solid Waste Management Services and Toronto Water’s respective year-end surpluses, if any, must be transferred to the Waste Management Reserve Fund and the Wastewater and Water Stabilization Reserves respectively, to finance capital investments and ongoing capital repairs and maintenance. Seventy-five percent (75%) of Toronto Parking Authority’s surplus is allocated to the City, with the remaining 25% reinvested in Toronto Parking Authority’s capital projects, which is consistent with an Income Sharing Agreement.

This report also includes recommendations to transfer cost-of-living adjustment/benefit cost provisions budgeted in the 2025 Non-Program Expenditure Budget, allocating budgeted funding to all applicable divisional budgets following ratification of the new four-year collective agreement; as well as further recommendations on proposed changes to the benefits plan for Management/Non-union employees, Accountability Officers and Elected Officials. The Management/Non-union benefit changes outlined in this report arise from a review of the benefit plan changes, following the conclusion of collective bargaining with Toronto Civic Employees’ Union Local 416, and Canadian Union of Public Employees Local 79.       

For the six months ended June 30, 2025, when adjusted for Toronto Building, the City experienced a favourable net variance in Tax-Supported programs of $31.7 million and is projecting an unfavourable net variance of $105.4 million for December 31, 2025.

The projected year-end unfavourable variance of $105.4 million is primarily driven by lower than anticipated funding from the Interim Housing Assistance Program (IHAP).  This is a federal program that provides funding to municipalities to manage the downstream impact of asylum claimants, including interim housing pressures. The City is engaged in continued discussions with federal officials on this matter, while investigating options to address this specific revenue shortfall.

The projected year-end variance, if adjusted for lower than budgeted IHAP funding, would be a favourable variance of $0.8 million, which aligns to the variance previously reported in the Operating Variance Report for the Four Months Ended April 30, 2025. As previously communicated in the four-month variance report, Divisions and Agencies are expected to ensure expenditures do not exceed approved program budgets and to review expenditure levels to address revenue shortfalls. Work is underway in Divisions and Agencies with unfavourable variances to identify actions to manage their shortfalls consistent with their obligations under the Financial Control By-Law, related to deficit management.

2025-2028 Active Benefits Plan for Management/Non-union employees, Accountability Officers and Elected Officials

City Council approved a four-year collective agreement for TCEU Local 416 on December 20, 2024, and with Local 79, which was ratified by the Union on March 22, 2025, and by City Council on March 26, 2025, which includes Extended Health Care (EHC) benefit enhancements.

In 2002, the City harmonized its benefit plans for non-union employees and elected officials. As part of this process, City Council directed that at the conclusion of each round of bargaining with the City's unions that the City review the benefit coverage for Management/Non-union employees, Retirees and Elected Officials to ensure that benefits plan remain competitive.

Recommended changes for the Active Benefits Plan for Management/Non-union employees, Accountability Officers and Elected Officials are identified in Appendix H of this report for City Council's consideration. The proposed changes maintain consistency with CUPE 79 foundational benefits and supports recommendations from past reviews of the non-union benefits plan to enhance attraction and retention. The City of Toronto provides a comprehensive Benefits Plan for its Management/Non-union employees, Accountability Officers and Elected Officials that is comparable to other public sector employers.

The proposed benefit changes result in an estimated annual cost of $0.492 million, driven by $0.838 million in added costs that are partially offset by $0.345 million in benefit savings.  Funding is available for these proposed changes within provisional funding budgeted for labour negotiations.

Appendices

Appendices A, B and C provide a detailed summary of Net Expenditures, Gross Expenditures and Revenues for the six-month results and projections to year-end by City Program and Agency, respectively. Appendix D details the recommended in-year budget adjustments that are financially neutral to the 2025 Approved Operating Budget. Appendix E provides a dashboard with information for each City Program and Agency. Donations and Sponsorship funds are itemized by program in Appendix F and G respectively. Appendix H details benefits changes as proposed in Recommendation 2.

The Chief Financial Officer and Treasurer recommends that:

1. City Council direct that $8 million be transferred from the Waste Management Reserve Fund to the Green Lane Reserve Fund to ensure that the short to medium term capital and operating funding needs for the Green Lane Landfill project are available in the Green Lane Reserve Fund without impacting the 2025 Solid Waste Management Services Operating Budget.

2. City Council direct that $80.129 million in Land Transfer Tax stabilization funds, temporary held in the Capital Financing Reserve be transferred to the recently created Municipal Land Transfer Tax Stabilization Reserve to ensure sufficient funds are available to mitigate fluctuations in the Municipal Land Transfer Tax revenues during periods of slower real estate activity and to support stability and sustainability of City revenues and services.

The City of Toronto (City) maintains deferred revenue balances that will be recognized as revenues in future years, in addition to reserves and discretionary reserve funds that are intended to support the City's future activities. This report provides an update of these balances, as well as their related earned revenues and activities for the six months ended June 30, 2025.

Deferred Revenue

Deferred revenue, or obligatory reserve funds, are monies received from external parties for specific purposes outlined in Provincial legislation or third-party agreements.   

For the six-month period ended June 30, 2025, the City’s deferred revenues increased from $6,728.9 million to $7,514.7 million. The increase of $785.8 million was primarily driven by monies received from water and wastewater rate revenue, development and planning act contributions and the federal housing accelerator fund.

Reserves and Discretionary Reserve Funds

Reserves and Discretionary Reserve Funds are established by Council to support the financial management and operations of the City, minimize annual tax rate fluctuations, and provide a measure of financial flexibility to address the impact of significant unexpected pressures.

Reserves and Discretionary Reserve Funds balances increased by $70.8 million over the six-month period ended June 30, 2025, going from $5,610.6 million to $5,681.4 million. This net increase is the result of Council-authorized contributions for capital investments in housing, transit, capital infrastructure, and vehicle and equipment replacement. The majority of the City's Reserves and Discretionary Reserve Funds balances ($5,454.1 million, or 96.0%) are committed to future Council directed activities that include capital and operating expenditures and rate-based activities.

The remaining reserve and discretionary reserve fund balance ($227.3 million, or 4.0%) is uncommitted and available to respond to various unanticipated costs, stabilize funding sources, including the tax base, or for emergency purposes such as extreme weather events.  The uncommitted amount represents 1.2% of the total 2025 approved Operating Budget of $18,849.1 million.

There are total commitments and obligations of $41,066.7 million against the $13,196.1 million balance in committed reserves, discretionary reserves and deferred revenue consistent with the approved 10-Year Capital Plan and other requirements and obligations. These commitments and obligations are greater than three times the current reserve, discretionary reserve fund and deferred revenue balances, requiring continued reserve contributions to support planned expenditures. A further breakdown of the City’s current balances in comparison to planned operating and capital expenditures, including both deferred revenues and discretionary reserve funds, can be found in Appendix F.

There are no financial implications arising from the adoption of the recommendations in this report.

The General Manager, Toronto Water recommends that:

1. City Council authorize the reallocation of cashflows and corresponding funding within Toronto Water’s 2025 Capital Budget and 2026-2034 Capital Plan in the amount of $38.720 million, for acceleration and deferral of projects, as presented in Schedule A (Part A and B) to the report, with a zero Budget impact.

2. City Council authorize the reallocation of project costs, cashflows and corresponding funding in Toronto Water's 2025 Capital Budget and 2026-2034 Capital Plan in the amount of $7.870 million from projects that have been awarded under budget or completed to those requiring additional funding in the same amount as presented in Schedule A (Part C), with a zero Budget impact.

This report requests City Council's authority to amend Toronto Water's 2025 Capital Budget and 2026-2034 Capital Plan by adjusting project cash flows contained within the 10-Year Capital Budget and Plan, respectively, to align forecasted project accelerations and deferrals.

Additional reallocations to project cashflows and project costs are requested where project expenditures exceed the current approved cashflows and project costs. These reallocations will allow Toronto Water to continue to deliver projects within its 10-Year Capital Plan.

The adjustments will have a zero dollar impact on the 2025 Capital Budget and 2026-2034 Capital Plan and will align the budget and plan with Toronto Water's capital project delivery schedule and program requirements.

The approval of this report will authorize the acceleration and deferral of cashflows in Toronto Water's 2025 Capital Budget and 2026-2034 Capital Plan in the total amount of $38.720 million. The report also recommends the reallocation of 2025-2034 project costs and cash flows in the total amount of $7.870 million, as detailed in Schedule A (attached).

A number of multi-year projects are projected to proceed ahead of the approved annual cash flows. The accelerated spending of these projects is offset by delays in other projects as outlined in Schedule A (Part A and B). These changes will not result in any changes to total project cost for each project.

As outlined in Part C of Schedule A, additional funding is required for several projects in order to support increased infrastructure renewal needs, to provide on-going contract administration services, and to align project costs with actual bid pricing. The additional costs for these projects are to be offset from funds available from projects which have been completed with commitments released.

There are no additional costs to the City as a result of the approval of this report. The recommended adjustments will align the 2025 Capital Budget and 2026-2034 Capital Plan with Toronto Water's capital project delivery schedule and program requirements.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Service Excellence Committee recommends that:

1. Executive Committee request the Executive Director, Customer Experience (311), the General Manager, Parks and Recreation, the General Manager, Toronto Water, the General Manager, Transportation Services, the General Manager, Solid Waste Management Services, the Executive Director, Municipal Licensing and Standards, and the Executive Director, Environment, Climate and Forestry, to report back to the Service Excellence Committee by the second quarter of 2026 with a proposed plan and phased approach to simplify the 311 service intake process, starting with Parks Operations, by streamlining public-facing service categories and consolidating service codes where appropriate.

At its meeting on September 12, 2025 the Service Excellence Committee considered Item SE9.2 and made a recommendation to the Executive Committee.

Summary from the report (August 27, 2025) from the Chief Technology Officer and the Executive Director, Customer Experience:

This report responds to a request from the Service Excellence Committee to provide information on the history of 311, integration with divisions, and initiatives that are underway to improve the customers' end-to-end experience accessing City services through 311.

311 Toronto launched in September 2009 as the primary gateway to City information and services, centralizing numerous phone numbers and divisional contact centres into a single, easily remembered number (311). The launch connected existing and integrable divisional work management systems with the 311 customer relationship management system, automating information flow between 311 and the following five Integrated Service Divisions: Solid Waste Management Services, Transportation Services, Toronto Water, Municipal Licensing and Standards, and Environment, Climate and Forestry – Urban Forestry.

This integration allows the public to open service requests to report issues or request City services via 311. Information entered in the service request is automatically forwarded to the appropriate Integrated Service Division for review and action. Upon actioning, integration also allows information and some updates from Integrated Service Divisions to be automatically shared back with 311, enabling the public to obtain updates on the status of their service request, including whether the service request has been addressed.

However, information sharing is limited in some cases by legacy work management systems and business requirements, which require updates to permit the sharing of notes and status updates and/or to enable planned enhancements aimed at supporting the quality of information shared back to 311 and ultimately the public. Customers would also benefit from standardized quality notes that are available for every closed service request.

A jurisdictional scan of large North American cities shows that many municipalities are enhancing their 311 operations to meet customers' expectations by standardizing processes, fostering a customer-first culture through change management, and updating technology to support these improvements. These process and technology changes require inter-divisional collaboration and accountability to ensure adoption. The Customer Experience Division, in collaboration with Technology Services Division and the Integrated Service Divisions, are working on two key initiatives:

- Closing the Loop: Focuses on enhancing the quality of information provided to customers and standardizing how service requests are managed across divisions; and
 

- Enterprise Work Management Solution: Replacing legacy work management systems with modern platforms that provide the technical foundation to support these improvements.

These initiatives complement additional improvements that have been made since the launch of 311 to enhance the customer experience, including the expansion of multi-lingual and multi-channel support and proactive customer communication options (e.g. language support for live telephone translation services, introduction of an interactive voice response to route customers to appropriate staff support based on their selection). Additionally, 311 will be providing intake services for Parks and Community Recreation, with integration planned by the end of September 2025 and end of 2026, respectively.

The Chief Planner and Executive Director, City Planning, the Acting General Manager, Parks and Recreation, and the Executive Director, Corporate Real Estate Management recommend that:

1. Executive Committee request the Chief Planner and Executive Director, City Planning, the Acting General Manager, Parks and Recreation, and the Executive Director, Corporate Real Estate Management to work with the Toronto and Region Conservation Authority to develop recommendations related to a repair/rehabilitation program for the high-risk Western Beaches breakwater locations, including funding requirements; and a state of good repair management program for the Western Beaches breakwaters and report back in second quarter of 2026.

This report provides a status update on the Western Beaches Breakwaters Action Plan, including identification of immediate repair needs and funding requirements as requested by City Council in June 2025. Since then, staff have advanced Council directions on identifying repair needs and consulting with other levels of government on ownership, rehabilitation funding and coordinated investment.

This report is specific to the Western Beaches breakwaters, stretching from the Humber River to Ontario Place. Staff will bring forward a separate report in 2026 on the broader dock walls work required across the Toronto waterfront.

In summary, based on a visual condition assessment completed in July and August by Toronto and Region Conservation Authority (TRCA) and its consultants, there are no locations where imminent failure risk is extreme and immediate stabilization is required. These structures were very well built in the 1920s and continue to serve many of the required shoreline protection functions. However, there are five locations, mostly across from Sunnyside Beach and the Boulevard Club, totalling approximately 580 linear metres, where conditions are serious with a high risk of failure within an estimated 3 to 5 years. These locations require plans for repair or rehabilitation within five years. Given the time it takes to design, permit and construct in-water infrastructure projects, efforts need to commence in 2026 on repair plans for these high-risk locations. Most of these five locations are within the length of breakwaters that City staff have identified as likely under Federal ownership. 32 linear metres of breakwater that is owned by the City is in high-risk condition (closer to Ontario Place); however, it may be feasible to remove this small segment (rather than repair or rehabilitate it) as it is a stand-alone remnant structure that currently has minimal functional value. Further investigation is required before a recommendation for this City-owned segment can be made.

City staff have initiated conversations with Federal and Provincial officials and will now share the findings of the condition assessment. The structures sit within Provincial water lots, which will complicate matters of ownership and responsibility and will require additional intergovernmental discussions.

City staff, in consultation with TRCA, will report to Executive Committee in Q2 2026 on the status of intergovernmental discussions and with recommendations for the repair or rehabilitation of the breakwaters with a high risk of failure, including associated costs and a funding strategy.

The remainder of the breakwater structures are in poor or fair condition, with a few locations in relatively good condition as a result of repairs or reconstruction completed within the last 20 years. Locations in poor condition require monitoring and management plans to inform a state of good repair program. The Q2 2026 breakwaters report will include recommendations for ongoing monitoring and management of the structures. Future reporting will be prepared in consultation with other government partners to inform a shared understanding of the management needs for these assets.

There are no immediate financial impacts resulting from the recommendations included in this report. Future reporting will identify breakwaters funding requirements, including potential intergovernmental funding approaches for design and implementation. Funds are available through the 2025-2034 City Planning Waterfront Revitalization Initiative Capital Budget and Plan to commence an appropriate City share of the initial design work for the high-risk breakwater locations.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The City Clerk recommends that:  

1. City Council re-assign the appointment of Secretary of the Dangerous Dog Review Tribunal from the City Clerk to the Executive Director, Court Services, effective January 1, 2026.

2. City Council request the Property Standards Committee to appoint the Executive Director, Court Services as Secretary of the Property Standards Committee effective January 1, 2026, with the authority to delegate the role of Secretary for each Panel.

3. City Council approve an in-year budget transfer to increase the 2025 Operating Budget for Court Services by $0.209 million gross and $0.169 million net and the staff complement by two permanent positions offset by a corresponding decrease in the 2025 Operating Budget and staff complement for the City Clerk’s Office in order to facilitate the transition planning for the functional transfer of the administration for the Dangerous Dog Tribunal and the Property Standards Committee.

4. City Council amend Toronto Municipal Code Chapter 441, Fees and Charges to assign the fees for the Dangerous Dog Review Tribunal Appeal and Property Standards Appeal from Appendix C, Schedule 10 City Clerk's Office to Appendix C, Schedule 15 Courts Services effective January 1, 2026.

To facilitate the consolidation of responsibility for most of the City's tribunals within Court Services, this report recommends that City Council re-assign the appointment of Secretary of the Dangerous Dog Review Tribunal from the City Clerk to the Executive Director, Court Services. If adopted by Council, it also requests the Property Standards Committee to appoint the Executive Director, Court Services as Secretary of the Property Standards Committee. These changes would take effect as of January 1, 2026.

Court Services will be taking over the role of administering the Dangerous Dog Review Tribunal and Property Standards Committee from City Clerk's Office, effective January 1, 2026.  To allow Court Services to hire and train staff in advance of the transfer of roles, this report recommends an in-year 2025 Operating budget transfer of $0.209 million gross and $0.169 million net and two permanent positions from the City Clerk's Office to Court Services.  The transfer is for the annual budget related to the salaries and benefits for two permanent positions, honoraria for public members who serve on the tribunals, required training for members of the Dangerous Dog Review Tribunal to be provided by the Society of Ontario Adjudicators and Regulators (SOAR), and revenues from user fees for the Dangerous Dogs Review Tribunal Appeal and Property Standards Appeal.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Chief Financial Officer and Treasurer recommends that:

1. City Council receive the Education Development Charges Complaint – 150 Eighth Street Report for information.

This report responds to a complaint filed pursuant to Section 257.85 of the Education Act, 1990, relating to a development project located at 150 Eighth Street in Etobicoke-Lakeshore.

The development project is an affordable housing project for 56 units under the City’s Open Door Affordable Housing Program. The complainant, the Canadian Helen Keller Centre (the “CHKC”), are of the opinion that they should be exempt from education development charges. The complainant asserts that education development charges in the amount of $184,408.00 should be refunded as this redevelopment was part of Toronto’s Rapid Housing Initiative and the following fees and charges have been waived or exempted:

- planning application fees;

- building permit fees;

- municipal development charges; and

- parkland dedication fees.

City staff have reviewed the complaint and are of the opinion that the Education Development Charges By-law (the "EDC By-law") was applied properly, and no error was made in the determination of the applicable education development charges. The complainant was eligible to have their municipal development charges waived/exempted, but there is no corresponding exemption provided by the Toronto Catholic District School Board.

This report was prepared in consultation with the (Acting) Chief Building Official and Executive Director, Toronto Building, and the City Solicitor.

There are no financial implications arising from the adoption of the recommendation in

this report.

The City is responsible for the collection of the education development charges on behalf of the Toronto Catholic District School Board, as required by the Education Act, 1990 and as a result, a total of $184,408.00 in education development charges was already collected by the City from the complainant and remitted directly to the Toronto Catholic District School Board. Should Council authorize a refund in the amount of $184,408.00 or should the complainant appeals Council's decision of rejecting the refund to the Ontario Land Tribunal (OLT) and a decision by OLT is in favour of the complaint, the Toronto Catholic District School Board would be responsible for refunding the education development charges to the complainant.

 The Deputy City Manager, Development and Growth Services recommends that:    

1. City Council authorize Waterfront Toronto's undertaking of a competitive process to select a development partner for the delivery of housing and supporting mixed use development for the first Ookwemin Minising development opportunity, and direct the Deputy City Manager, Development and Growth Services in consultation with the Executive Director, Housing Development Office, the Chief Executive Officer, CreateTO (on behalf of Toronto Port Lands Company ("TPLC) as landowner), and other relevant City Division and Agency officials, to work with Waterfront Toronto officials on the developer proposal call.

2. City Council direct the Deputy City Manager, Development and Growth Services and the Deputy City Manager, Community and Emergency Services, to work with Waterfront Toronto officials on their program of tri-government-funded Early Activation on Ookwemin Minising Phase 1 lands, in collaboration with relevant officials from City Divisions, CreateTO (through TPLC as landowner), and other landowners.

3. City Council direct the Deputy City Manager, Development and Growth Services to work with the Chief Executive Officer, Waterfront Toronto, the Chief Executive Officer, CreateTO, and relevant City officials including the Executive Director, Housing Development Office and Executive Director, Corporate Real Estate Management, and report back to the Executive Committee by the end of the second quarter of 2026 with recommendations addressing:

a. Waterfront Toronto-led business and implementation plans for Ookwemin Minising Phase 1, including government financing and funding options and incentives, delivery models to advance the City’s island-wide 30 percent affordable rental housing target and alignment with the Toronto Builds Policy framework;

b. required Council direction and/or other authorities to support the transfer of the Phase 1 Lands from TPLC to the City of Toronto at the appropriate time; and

c. the funding resources that will be required to support the proposed real estate transactions.

4. City Council authorize the inclusion of City lands in Ookwemin Minising Phase 1, and City Council as shareholder, direct the TPLC Board of Directors to authorize the inclusion of TPLC lands in Ookwemin Minising Phase 1, subject to further direction from City Council regarding the specific terms for transactions, which will be defined in Ookwemin Minising Phase 1 business and implementation plans.

5. City Council authorize the Director, Real Estate Services to negotiate and execute on behalf of the City any leases, licenses or other interim agreements, including agreements with Waterfront Toronto and other parties approved by Waterfront Toronto for nominal consideration, to provide access to City-owned lands for site investigations, site preparation (including the construction of enabling infrastructure), environmental remediation, interim activation, and any other early works related to the Ookwemin Minising Phase 1, on such terms and conditions as the Director, Real Estate Services deems appropriate and in a form satisfactory to the City Solicitor.

6. City Council as shareholder direct the TPLC Board of Directors to direct the Chief Executive Officer, CreateTO and the Executive Vice President, Port Lands Management, CreateTO to negotiate and execute on behalf of TPLC any leases, licenses or other interim agreements including agreements with Waterfront Toronto and other parties approved by Waterfront Toronto for nominal consideration, to provide access to TPLC-owned lands for site investigations, site preparation (including the construction of enabling infrastructure), environmental remediation, interim activation, and any other early works related to the Ookwemin Minising Phase 1, on such terms and conditions as the Chief Executive Officer, CreateTO deems appropriate and in a form satisfactory to the Chief Legal Counsel, CreateTO.

7. City Council authorize the Director, Real Estate Services to execute and deliver on behalf of the City, in consultation with the Executive Director, Housing Development Office and the Director, Waterfront Secretariat, City Planning Division, documentation granting the City's consent to Waterfront Toronto to act as the City's agent (in the City's capacity as owner of the City-owned lands in Ookwemin Minising Phase 1) in connection with any planning and development, infrastructure, servicing or other applications or agreements required for the development applications and interim activation of the Ookwemin Minising Phase 1 lands, including agreements with Toronto Hydro, Enbridge Gas or any third party utility provider, provided that Waterfront Toronto has agreed to assume all costs and liabilities under such applications and agreements or alternatively, that the City itself execute such documentation solely in its capacity as landowner and upon such other terms and conditions as the Director, Real Estate Services deems appropriate in consultation with the Executive Director, Housing Development Office and the Director, Waterfront Secretariat, City Planning Division, and in form satisfactory to the City Solicitor.

8. City Council as shareholder direct the TPLC Board of Directors to direct the Chief Executive Officer, CreateTO and the Executive Vice President, Port Lands Management, CreateTO to execute, in consultation with the Executive Director, Housing Development Office and the Director, Waterfront Secretariat, City Planning Division, documentation granting TPLC's consent to Waterfront Toronto to act as TPLC's agent (in TPLC's capacity as owner of the TPLC-owned lands in Ookwemin Minising Phase 1) in connection with any planning and development, infrastructure, servicing or other applications or agreements required for the development applications and interim activation of the Ookwemin Minising Phase 1 lands, including agreements with Toronto Hydro, Enbridge Gas or any third party utility provider, provided that Waterfront Toronto has agreed to assume all costs and liabilities under such applications and agreements or alternatively, that TPLC itself execute such documentation solely in its capacity as landowner and upon such other terms and conditions as the Chief Executive Officer, CreateTO deems appropriate in consultation with the Executive Director, Housing Development Office and the Director, Waterfront Secretariat, City Planning Division, and in form satisfactory to the Chief Legal Counsel, CreateTO.

9. City Council direct the Chief Planner and Executive Director, City Planning and the Executive Director, Development Review to work with the Chief Executive Officer, CreateTO and Chief Executive Officer, Waterfront Toronto to establish an Ookwemin Minising Implementation Table with the Member of Council for Ward 14 - Toronto Danforth and the Mayor's Office.

10. City Council direct the City Manager to work with Waterfront Toronto officials and to continue to pursue discussions with their Provincial and Federal counterparts on further funding for waterfront revitalization, including Waterfront East transit and further phases of Ookwemin Minising.

This report sets out a road map for the first phase of mixed-use development on Ookwemin Minising, Toronto's new island in the Port Lands. In January 2025, the City of Toronto, the Government of Canada, and the Province of Ontario announced $975 million for Waterfront Toronto to advance the delivery of the revitalization plan on Ookwemin Minising. This tri-government investment includes foundational works to unlock new housing, public space, and supporting infrastructure.

Revitalizing Ookwemin Minising will be a complex, long-term undertaking. Over time, City Council will be required to approve matters related to affordable housing, major infrastructure, real estate transactions and land use planning.

City Council approvals are required at this time to advance Phase 1 of the island's development (the tri-government funded project), specifically for the City to:

- Authorize Waterfront Toronto, as revitalization lead, to initiate a developer proposal call process for a partner for the first development blocks on Ookwemin Minising (this report); and,

- Authorize Waterfront Toronto to act as an agent, for the purpose of planning applications, development approvals, and infrastructure design approvals, for the City and the City of Toronto Economic Development Corporation (operating as the Toronto Port Lands Company, TPLC), a City-owned corporation managed by CreateTO, for the purposes of advancing the development of Phase 1.

Current work includes an integrated planning and public realm study and business and implementation planning. A reporting roadmap is provided in Attachment 1. Key upcoming milestones include:

- Waterfront Toronto's launch of a developer proposal call for a development partner on Phase 1 lands;

- A staff report on the outcomes of the integrated planning and public realm study for the island; and

- A staff report on business and implementation planning matters, which will outline the public policy outcomes to be sought from the first development blocks to move forward in Phase 1 and on the transfer of Phase 1 lands to the City of Toronto from TPLC.

In May 2025, City Council adopted the Toronto Builds Policy Framework which outlines the City's priorities in developing its own land, including a strong focus on the retention of public land and creation of a range of new rental homes while contributing to complete communities. Council's adoption of this framework also provides for flexibility in recognition of challenging market conditions, the wide range of size and types of developments that may proceed on City land in the future, and the need for alignment with intergovernmental agreements and shared objectives.

City staff will report back as soon as possible, before the end of the second quarter of 2026, on the status of the market offering and to provide further details on business and implementation planning matters, including financing options and delivery models to pursue the City’s affordable housing targets for Phase 1, and the contribution of this toward achieving Council's ambitious affordable housing goals for the island. This work is occurring in the context of significant market challenges, where the financial viability of residential developments is at all time high risk given increasing construction costs, coupled with foreign trade risks and US- initiated tariff disputes.

In addition to the market offering, work is ongoing related to early activation. The Early Activation Program for Ookwemin Minising will introduce “meanwhile uses” to support the emerging community, activate public spaces, enhance the visitor experience within the new Don River parkland system, and showcase the island’s potential to future investors. These initiatives will help set the stage for phased development while testing new approaches to programming and placemaking. Waterfront Toronto is working closely with CreateTO (as manager of Toronto Port Lands Company lands), City divisions, and other landowners to plan and (in the City's capacity as owner of the City-owned lands in Ookwemin Minising Phase 1) coordinate early activation efforts, ensuring alignment with broader interim-use strategies across the Port Lands. Approval is recommended to authorize required agreements with Waterfront Toronto and TPLC for Ookwemin Minising.

Indigenous community engagement, relationship-building and reconciliation action are central to the implementation of Ookwemin Minising. Building on the City’s Reconciliation Action Plan and the renewed waterfront vision adopted in 2022, the City, Waterfront Toronto, and partners are working with First Nations rightsholders and other  First Nations, Inuit, Métis, and urban Indigenous communities to integrate their priorities into planning, design, and placekeeping. This commitment is reflected in the naming of the island and ongoing collaboration with Indigenous partners, architects, designers and consultants, including Trophic Design, an Indigenous-owned firm contributing knowledge and perspective to public realm and infrastructure design. These efforts build on Waterfront Toronto’s Memorandum of Understanding with the Mississaugas of the Credit First Nation and their contributions to the Port Lands Flood Protection Project, where Indigenous leadership has helped ensure respect for the histories of this area and shape the design of future neighbourhoods.

As waterfront revitalization progresses, the City and its partners remain committed to strengthening relationships, supporting Indigenous cultural revitalization, and ensuring the waterfront reflects Indigenous histories, rights, and enduring connections to land and water.

Concurrently, staff will continue discussions with their Provincial and Federal counterparts on further funding for waterfront revitalization, including Waterfront East transit and further phases of Ookwemin Minising, which are contingent on future approvals.

This next stage of work on the creation of a new mixed-income, mixed-use complete community on Ookwemin Minising marks a significant milestone for the Port Lands. The combined tri-government investment, the creation of Toronto’s newest island, and the early delivery of housing and public spaces offer an opportunity to advance revitalization in the Port Lands.

There is no additional financial impact resulting from the adoption of this report.

City Council has approved initial capital funding to support the first phase of implementation under the Next Phase of Waterfront Revitalization, a tri-government initiative jointly funded by the City of Toronto, the Government of Canada, and the Province of Ontario. Each order of government has committed $325 million for a total investment of $975 million.

At its meeting in May 2025, through EX23.9 – Adjustments to Capital Budget, Carry Forward Funding and Future Year Commitments, City Council approved an increase of $39 million to the Waterfront Revitalization Initiative, with $19 million in 2025 and $20 million in 2026, fully funded by debt. These funds support initial design work and early implementation efforts for projects including Ookwemin Minising. Remaining funding allocations will be brought forward through the 2026 Budget process for the Mayor's consideration.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The Board of Directors of the Toronto Parking Authority recommends that:

1. City Council receive the report (June 27, 2025) from the President, Toronto Parking Authority for information.

At its meeting on July 17, 2025, the Board of Directors of the Toronto Parking Authority considered Item PA15.6 and made recommendations to City Council.

Summary from the report (June 27, 2025) from the President, Toronto Parking Authority:

We are pleased to present our first Environmental, Social and Governance (ESG) report, which marks a significant milestone in our commitment to sustainable and responsible business practices, and our support of our TransformTO Net Zero goals.

Toronto is the fourth largest city in North America.  Developing sustainable mobility solutions that meet ever changing customer needs is daunting yet inspiring. It requires hyper-collaboration with our stakeholders coupled with an unwavering focus on delivering sustainable value and growth. We are proud to engage with our City colleagues, staff, and industry partners to challenge the status quo; to reimagine, prototype, and deploy new and better ways to keep people, businesses, and industry moving.

The modernization of our integrated network of Parking, EV Charging and Bike Share portfolio is in flight. Our customers took over 32 million trips across our network in 2024. Our services are available 365 days a year across the city. In support of our TransformTO Net Zero commitments, we delivered a reduction of 7.0 million kg of greenhouse gas emissions in 2024. We are just getting started.

We are proud to share our progress in this, our inaugural Environmental, Social, and Governance (ESG) Report that reflects Toronto Parking Authority's commitment to the environment, society and governance. Through this ESG report, we aim to provide a comprehensive overview of our sustainability journey, showcasing our achievements, challenges, and future goals. We invite our stakeholders to join us in this endeavour, as we strive to build a more sustainable world.

Mayor Olivia Chow recommends that:

1. City Council request the Federal Government ensure that transitional funding of $107 million is flowed for 2025-2026 to support housing costs for refugee claimants and asylum seekers already in the City’s emergency shelter system; and

2. City Council reiterate the request to the Provincial and Federal governments in MM20.38 to increase Toronto’s allocation through the Canada-Ontario Housing Benefit to $54 million to allow 300 households to continue to secure permanent housing each month.

The City of Toronto is facing two funding cuts that threaten our ability to bring people off the streets, out of encampments, and into shelter and housing.

On September 18, the Province of Ontario informed the City that our allocation of the Canada-Ontario Housing Benefit (COHB) for 2026 has been reduced to $7.95 million, compared to $19.75 million for 2025 and $38 million for 2024.

COHB is the single most effective tool we have for freeing up beds in our shelter system so that more people can come indoors from streets and parks. COHB helps people leave shelters, afford their own housing, become independent, and eventually no longer rely on the government to stay housed.

Earlier this year,  facing provincial delays and uncertainty, City Council decided to front some of the COHB funding. That was $4.815 million to help 570 households move into housing, therefore freeing up more shelter beds for people on the street. Now, the province has said we can only allow for 40 more households to move into housing between now and March 2026 within the funding they’ve provided.

That means all funds will be spent by the end of October, just when the weather turns cold and we need to bring homeless people on the street into shelters or homes.

Previously, I shared the troubling news that the federal government is making significant changes to the Interim Housing Assistance Program (IHAP) which would see the City receive funding for just 26% of what we have projected to spend this year to shelter refugees and asylum seekers. Ontario Big City Mayors unanimously adopted a motion calling on the federal government to reinstate this funding as sheltering refugees is a federal responsibility. The Toronto and Region Board of Trade has written to the Minister in support of the City’s position.

The City and federal government are in agreement that we need more robust, permanent and lower-cost solutions to sheltering refugee claimants and asylum seekers. At the peak of the refugee response the City was sheltering 6,490 people in this stream each night. As the situation has stabilized, through successful collaboration with federal partners, we now have 3,420 claimants in our shelter system. The City is developing plans for a scaled, 2,000-bed refugee shelter system including expanding the refugee house model in partnership with frontline agencies and winding down the use of shelter hotels. But this work cannot continue if we are facing a $107 million in-year cut to the IHAP program, while we are still providing shelter support for 3,450 refugee claimants every night.

Together, these two funding cuts from the federal and provincial government place tremendous stress on those who found themselves homeless. We do not want to see a repeat of people sleeping in front of the city's homeless shelter placement office at Peter Street.

The federal government has the power and the responsibility to regulate the refugee application processes and the rate of work permit approvals. The provincial government determines how much financial support is provided to the most vulnerable such as those living with disabilities.

Emergency shelter and assisted housing for refugee claimants and those with complex needs should not be shifted onto the City and the property tax base.