Toronto Parking Authority - 2024 Operating Budget and 2024-2026 Capital Budget

This timeline affords both the Board and Management sufficient opportunity to discuss the proposed budget and the 2024 Annual Operating Plan, while adhering to the City's Budgetary process. Building off a strong performance through the first two quarters of 2023, Management is forecasting full year net income of $35.2 million, which is +$9.8 million versus 2023 plan. Revenues are forecasted at $143.0 million, +$2.4 million versus plan while operating expenses are projected at $100.7 million; +$4.6 million versus plan. Cash reserves at the end of 2023 are expected to drop from $101.0 million to $50.0 million as a result of Management executing its capital plan of $67.1 million in 2023. Capital delivery highlights in 2023 include increasing the number of electric vehicle chargers from 117 to 402 (+285), increasing the number of Bike Share stations from 620 to 780 (+130), deploying 1,300 e-bikes, investing more than $20 million to address health & safety issues and state-of-good-repair projects at three (3) parking facilities and purchasing 225 new Pay-by-Plate machines to help modernize Toronto Parking Authority's parking equipment. Forecasted spend against plan of 81.3 percent represents a marked gain in productivity (+50% in 2022) from a professionalized capital delivery team that executed Toronto Parking Authority's capital plan with precision. In 2024, Management is planning full year Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) of $47.7 million which is +$5.4 million versus 2023 Forecast and +$12.4 million versus 2023 Budget. 2024 Net income is forecasted at $31.9 million, which includes $18.5 million of amortization due to spending of +$140 million of capital and $2.7 million of Finance Income. Management's 2024 proposed Capital Budget of $76.8 million is designed to support Management's continued execution against Toronto Parking Authority's five (5) Strategic Priorities: Build a Great Place to Work; Drive Sustainable Growth; Strengthen the Core, Execute with Excellence; Connect with our Customers; and Engage and Innovate with our Strategic Partners. This includes $19.5 million in carry forward and $57.3 million in new spending on priority projects that include critical health and safety initiatives, continued delivery of state-of-good-repair projects involving Toronto Parking Authority's parking structures, the modernization of legacy parking equipment and continued investments to expand Toronto Parking Authority's Bike Share Toronto and Electric Vehicle Charging programs. Based on the financial outlook for 2023 and 2024, Toronto Parking Authority expects that delivery of its operating plan and demonstrated capability to deliver its capital plan will fully deplete its cash reserves by the end of 2024. Discussions with City Finance about securing a sustainable net income sharing agreement that expired in December 2019 have been ongoing for the past year but remains in flight. It is Management's expectations that a new agreement will be secured as part of the City's budgetary process in 2024.