Toronto Parking Authority - 2023 Operating Budget and 2023-2032 Capital Budget

This timeline affords both the Board and Management sufficient opportunity to discuss the 2023 Annual Operating Plans while adhering to the City's Budgetary process. Management is forecasting full year 2022 net income of $25.4 million, which is +$11.0 million versus plan. Operating revenues are forecasted at $121.5 million, or +$3.8 million better than budget while costs are projected at $96.1 million; $7.3 million favourable versus plan. Cash reserves at the end of 2022 are forecasted to drop from 2021 levels of $103.0 million to $73.5 million tracing to capital investments of $35.3 million. In 2023, Management is planning full year net income of $25.4 million with parking revenue improving to 84 percent of pre-pandemic (2019) levels. Executionally, Management will remain focused on our five (5) strategic platforms: Build a Great Place to Work, Strengthen the Core, Drive Sustainable Growth Connect with our Customers, and Engage and Innovate with our Strategic Partners. The proposed 2023 Capital Budget of $80.8 million includes $19.2 million in carry forward and $61.6 million in new spending on priority projects that support critical deliverables that include Talent Acquisition and Development, build out of a more robust Health and Safety Strategy, continued modernization of Toronto Parking Authority's governance framework (including our income sharing agreement with the City), accelerated growth of Toronto Parking Authority's Electric Vehicle Charging Program, expansion of the Bike Share Toronto program, and development and execution of our Asset Management plan. Based on the financial outlook for 2022 and 2023, Toronto Parking Authority is forecasting that meeting its operating and capital requirements will result in its cash reserves being fully utilized by the end of 2023. Discussions with City Finance about a new income sharing agreement are in progress. This report also provides an executive summary of Toronto Parking Authority's review of parking rates at both its on-street parking and off-street parking facilities and responds to City Council direction for Toronto Parking Authority to carry out a market rate analysis of parking rate adjustments in coordination with the annual budget process.