2026 Operating Budget and 2026-2028 Capital Budget

Consistent with previous years, a detailed review of management's proposed budget will be conducted with the Audit & Risk Management Committee on November 14, 2025. Formal approval of the 2026 Operating Budget and the 2026-2028 Capital Budget will be requested at the Board meeting scheduled for December 5, 2025. At that time, Management will also present the 2026 Annual Operating Plan for the Toronto Parking Authority (TPA). This timeline ensures that both the Board and Management have sufficient opportunity to thoroughly review and discuss the proposed budgets and Annual Operating Plan, while remaining aligned with the City's overall budgetary process. Building off a strong performance through the first two quarters of 2025, Management is forecasting full year net income of $45.5 million which is +$3.6 million better than Plan. Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) forecast of $57.9 million is -$2.9 million versus plan. Revenues are forecasted at a historic high of $177.3 million which is -$5.4 million versus plan driven by soft transaction performance in our parking portfolio. This was due in part to the lengthy snow event in February that closed 47% of our on-street inventory for snow removal resulting in 371 thousand fewer transactions. The Bike Share system drove favourable revenues of $1.6 million in 2025 which has mitigated in part some of the parking softness. Operating expenses are forecasted at $119.4 million which is $2.4 million lower than plan driven by disciplined cost management of discretionary costs and head count partially offset by favourability on municipal taxes and volume-related costs. Toronto Parking Authority 2025 capital delivery of $52.6 million includes expanding Bike Share Toronto across all 25 wards and the Toronto Islands, adding 750 bikes and 180 stations. To improve revenue performance at off-street facilities, management is advancing the EV charging network with 86 new chargers, increasing the total to 547 citywide. Investments also focused on reducing the State of Good Repair (SOGR) backlog through targeted car park upgrades. Additional service enhancements include modernization of equipment, customer experience, and data insights. These initiatives are guided by our multi-year capital strategy which supports our strategic priorities.