Operating Variance Report for the Nine Months Ended September 30, 2025

Table 1: Tax-Supported Operating Variance Summary Variance ($ in Millions) September 30, 2025 (Year-to-Date) December 31, 2025, (Year-End) Projection Favourable / (Unfavourable) Budget Actual Variance Budget Actual Variance Tax-Supported Operating Variance Summary City Operations 2,882.3 2,706.3 176.0 3,436.2 3,375.3 60.9 Agencies 2,380.3 2,371.9 8.4 3,104.6 3,117.7 (13.1) Corporate Accounts (408.9) (216.3) (192.6) (902.2) (951.8) 49.6 Total 4,853.7 4,861.9 (8.2) 5,638.6 5,541.2 97.4 % of Gross Budget 0% 2% As detailed in Table 1 above, for the nine-month period, Tax-Supported Operations experienced an unfavourable net variance of $8.2 million. A favourable net variance is projected at year-end of $97.4 million. It is important to note that the financial information presented is as of September 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 $57.2 million. At year-end, Rate-Supported Programs are projecting a favourable variance of $48.8 million. Table 2: Rate-Supported Operating Variance Summary Variance ($ in Millions) September 30, 2025 (Year-to-Date) December 31, 2025 (Year-End) Projection Favourable / (Unfavourable) Budget Actual Variance Budget Actual Variance Rate-Supported Operating Variance Summary Solid Waste Management Services (6.2) (17.7) 11.5 0.0 (5.7) 5.7 Toronto Parking Authority (33.4) (33.1) (0.3) (41.9) (41.9) (0.0) Toronto Water (14.5) (60.6) 46.1 0.0 (43.1) 43.1 Total Variance (54.1) (111.4) 57.3 (41.9) (90.7) 48.8 The favourable year-to-date variance and favourable year-end projection is driven by Toronto Water and Solid Waste Management Services, with the favourable projection 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 of Toronto Parking Authority's surplus is allocated to the City, with the remaining twenty-five percent reinvested in Toronto Parking Authority's capital projects, which is consistent with an Income Sharing Agreement.