Operating Variance Report for the Year Ended December 31, 2024

Variance Summary Variance ($ in Millions) Favourable / (Unfavourable) As of December 31, 2024 Tax-Supported Operating Variance Summary Budget Actual Var City Operations 3,033.4 3,011.9 21.5 Agencies 2,877.2 2,828.5 48.7 Corporate Accounts (606.7) (666.9) 60.2 Total 5,303.9 5,173.5 130.4 Less: Toronto Building (16.1) (32.1) 16.0 Total Variance 5,320.1 5,205.6 114.4 % of Gross Budget 2% As detailed in Table 1 above, for the 2024 year-end, Tax-Supported Operations experienced a favourable net variance of $114.4 million. The favourable net variance reflects adjustments for Toronto Building whose surplus is allocated to reserves by legislation. Rate-Supported Programs: Rate-Supported Programs reported a favourable year-end net variance of $34.2 million. Table 2: Rate-Supported Operating Variance Summary Variance ($ in Millions) December 31, 2024 Favourable / (Unfavourable) Budget Actual Var Rate-Supported Operating Variance Summary Solid Waste Management Services 0.0 (7.4) 7.4 Toronto Parking Authority (31.9) (44.7) 12.8 Toronto Water 0.0 (14.0) 14.0 Total Variance (31.9) (66.1) 34.2 The favourable year-end variance is driven by all three rate programs. 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 the Income Sharing Agreement.