Operating Variance Report for the Four Months Ended April 30, 2023

As a result, the 2023 Operating Budget was balanced based on the expectation of continued COVID-19 support funding from the Government of Canada and Province of Ontario with a total amount of $932.8 million. To date, $55.2 million in 2023 COVID-19 support funding has been committed specific to Public Health costs. In addition to COVID-19 support funding, the City has generated $32.2 million in offsets associated with projected COVID-19 impacts compared to budgeted estimates, resulting in a $845.4 million remaining COVID-19 funding shortfall in 2023. Table 1 below details the budgeted 2023 City-wide COVID-19 related financial impacts against secured and assured COVID-19 support funding; and the resulting financial position that is reflected in the year-end variance projections: Table 1: 2023 Anticipated COVID-19 Financial Impacts COVID-19 Impacts ($Millions) 2023 Budget Committed Fed/Prov Funding Internal Offsets / Savings Remaining 2023 Shortfall Transit 366.4 366.4 Shelters 317.2 317.2 Other Municipal Pressures 161.9 161.9 Public Health 87.4 55.2 32.2 0 Total COVID-19 Impacts 932.8 55.2 32.2 845.4 Tax Supported Programs: The following table summarizes the projected year-end financial position of the City's Tax Supported Operations as of April 30, 2023. Table 2: Tax Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2023 April YTD 2023 Year-End Projection Budget Actual Var Budget Actual Var Tax Supported Operating Variance Summary City Operations 1,026.0 1,064.4 (38.4) 3,038.8 3,161.1 (122.3) Agencies 974.2 944.2 30.0 2,897.4 2,850.1 47.3 Corporate Accounts (280.7) (80.5) (200.1) (1,027.5) (209.3) (818.2) Total Variance 1,719.6 1,928.1 (208.6) 4,908.7 5,801.9 (893.2) Less Toronto Building 4.1 (8.1) 12.2 (16.1) (34.9) 18.8 Less City Planning 3.8 2.1 1.8 9.7 6.1 3.6 Total Variance-Excluding Toronto Building/City Planning 1,711.7 1,934.2 (222.5) 4,915.1 5,830.7 (915.6) % of Gross Budget (13%) (19%) Four Month Year-to-Date and Projected Year-End Spending Results: As noted in Table 2 above, for the four months ended April 30, 2023, Tax Supported Operations experienced an unfavourable net variance of $ 222.5 million or (13%) of planned expenditures adjusted for Toronto Building and City Planning. It is important to note that the April 30 th experience is a snapshot in time and the year-end projection is based on current and expected future impacts. The continued impact of COVID-19 and any deviation from expectations to year end will impact variance projections. Any changes will be reflected in variance reporting for the twelve months ending December 31, 2023. For year-end, the City is projecting an unfavourable variance of $915.6 million or (19%) of the 2023 Gross Operating Budget, adjusted for Toronto Building and City Planning. The projected unfavourable variance results from: $845.4 million COVID-19 funding shortfall; $111.7 million projected unfavourable variance within Shelter Services attributed to the Refugee Response funding shortfall of $97 million and greater than expected overall shelter services costs; and $41.5 million projected favourable across all other divisions and agencies. Rate Supported Programs: Rate Supported Programs reported a favourable year-to-date net variance of $7.2 million. Table 3: Rate Supported Operating Variance Summary Variance ($M) Favourable / (Unfavourable) 2023 April YTD 2023 Year-End Projection Budget Actual Var Budget Actual Var Solid Waste Management Services (7.2) (7.1) (0.1) 0.0 (5.7) 5.7 Toronto Parking Authority (4.5) (12.0) 7.5 (25.4) (32.9) 7.5 Toronto Water 12.9 13.1 (0.2) 0.0 (17.0) 17.0 Total Variance 1.2 (6.0) 7.2 (25.4) (55.6) 30.2 The favourable variance is largely driven by Toronto Parking Authority, attributed to both expense savings as well as positive revenue variances. The year end is projecting no change in the variances for Toronto Parking Authority from the current experience, with a more favourable outlook in Toronto Water, as higher consumption rates are expected to continue. Rate Supported Programs are funded entirely by the 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 Wastewater and Water Stabilization Reserves and Waste Management Reserve Fund, respectively, to finance capital investments and ongoing capital repairs and maintenance.

3. City Council authorize vendor fees detailed in Appendix E and consistent with the 2023 Budget to be added to the current police reference checks and other police documents fees charged to the public by Toronto Police Service and amend City of Toronto Municipal Code Chapter 441, Fees and Charges to reflect these new fees.