Toronto Parking Authority - Audit and Risk Management Committee
The full agenda, as filed
All 4 items in the clerk’s order. Each carries the city’s own words: the staff recommendation, what the body decided, and its status. Nothing below is written by us.
PR4.1adopted
Toronto Parking Authority Enterprise Risk Management Update Report
Enterprise Risk Management is a continuous process to identify and assess risks and opportunities at an enterprise level. The Toronto Parking Authority currently does not have a formal Enterprise Risk Management strategy and after the release of a Request for Proposals in the second quarter of 2023, the successful proponent, KPMG LLP (KPMG), was engaged to support the setup of the Enterprise Risk Management Program. The purpose of this report is for KPMG to provide a status update as of October 17, 2023.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (October 17, 2023) from the President, Toronto Parking Authority for information.
Staff recommendation as filed
The President, Toronto Parking Authority, recommends that: 1. The Board of Directors of the Toronto Parking Authority receive this report for information.
PR4.2adopted
Audit and Risk Management Committee - Auditor's 2023 Work Plan
This report presents the Auditor's 2023 Audit Work Plan for the audited financial statements for the Toronto Parking Authority for the year ended December 31, 2023. KPMG Audit Partner, Kevin Travers, will be attending the November 2, 2023 Audit and Risk Management Committee meeting to review with the Committee, the work plan to deliver the audit for the Toronto Parking Authority's 2023 Financials (see Attachment 1).
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (October 19, 2023) from the President, Toronto Parking Authority for information.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors, Toronto Parking Authority, receive this report for information.
PR4.3adopted
2023 Third Quarter Financial Update (Operating and Capital)
Toronto Parking Authority's net income September 30, 2023 Year-to-Date was $32.2 million; +$13.2 million versus plan. Total revenues $108.2 million; +$4.0 million favourable, driven by better than expected parking revenues (87 index vs 2019; +3 points). Costs were $73.7 million; $4.3 million lower than plan driven by favourability on salaries due to selective hiring, project consulting programmes and facility costs. Financing income was $3.5 million better than plan due to the higher interest rates on the cash balance. The monthly income is expected to decrease throughout the year as capital is deployed. Current 2023 net income outlook is forecasted to be $37 to $41 million vs plan of $25.4 million. Capital spend was $31.3 million as of September 30th with in flight commitments of $26.8 million. Management is forecasting to achieve planned Toronto Parking Authority-led annual capital spend. We are actively engaging our City partners to ensure completion of total planned capital spend of $71.3 million.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of the Toronto Parking Authority receive the report (October 19, 2023) from the President, Toronto Parking Authority for information.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors of the Toronto Parking Authority receive this report for information.
PR4.4adopted
Toronto Parking Authority - 2024 Operating Budget and 2024-2026 Capital Budget
The Board received the proposed budget for information at its meeting on October 6, 2023. The purpose of this report is to provide the Audit and Risk Management Committee of the Board of Directors with Management's recommended 2024 Operating Budget and 2024 - 2026 Capital Budget in further detail. Formal approval will be requested at the November 23, 2023 Board meeting where Management will also present the 2024 Annual Operating Plan. 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 three quarters of 2023, Management is forecasting full year net income of $37.3 million, which is +$11.9 million versus 2023 plan. Revenues are forecasted at $144.8 million, +$4.2 million versus plan while operating expenses are projected at $103.2 million; +$2.1 million favourable versus plan Cash reserves at the end of 2023 are expected to drop from $109.2 million to approximately $50.0 million as a result of Management executing its capital plan of $60.3 million in 2023. Capital delivery highlights in 2023 include increasing the number of electric vehicle (EV) 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 (SOGR) projects at three (3) parking facilities and purchasing 225 new Pay-by-Plate machines to modernize Toronto Parking Authority's parking equipment. Forecasted spend against plan of 81.3 percent represents a marked gain in productivity (+50 percent in 2022) executed by a professional engineering team that delivered on their commitment to the organization. In 2024, Management is planning full year Earnings before Interest, Taxes, Depreciation and Amortization (EBITDA) of $47.7 million which is +$6.1 million versus 2023 Forecast and +$6.3 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 SOGR 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.
The Toronto Parking Authority - Audit and Risk Management Committee recommends that: 1. The Board of Directors of Toronto Parking Authority approve the proposed 2024 Operating Budget and 2024 - 2026 Capital Budget for Toronto Parking Authority. 2. The Board of Directors of Toronto Parking Authority approve the rates at the off-street parking facilities identified in Attachment 3-2 to this report (October 20, 2023) from the President, Toronto Parking Authority; 3. The Board of Directors of Toronto Parking Authority provide authority for the President, Toronto Parking Authority to establish new permit parking products at market rates at all off-street parking facilities where there is surplus capacity in the supply of parking and the issuance of permits does not compromise the ability to meet short-term parking demands; 4. The Board of Directors of Toronto Parking Authority approve the modified rates for on-street parking locations identified in Attachments 2 and 2-3; 5. The Board of Directors of Toronto Parking Authority approve the modification to the parking meter or parking machine hours for the specific on-street parking locations identified in Attachment 2-2 to this report and; 6. The Board of Directors of Toronto Parking Authority to direct the President, Toronto Parking Authority to submit bills to City Council to make amendments to the appropriate Chapters of the Toronto Municipal Code to implement the rates for on-street parking locations identified in Attachments 2 and 2-3 to this report; and modifications to the parking meter or parking machine hours for the specific on-street parking locations identified in Attachment 2-2 to this report.
Staff recommendation as filed
The President, Toronto Parking Authority recommends that: 1. The Board of Directors of Toronto Parking Authority approve the proposed 2024 Operating Budget and 2024 - 2026 Capital Budget for Toronto Parking Authority. 2. The Board of Directors of Toronto Parking Authority approve the rates at the off-street parking facilities identified in Attachment 3-2 to this report; 3. The Board of Directors of Toronto Parking Authority provide authority for the President, Toronto Parking Authority to establish new permit parking products at market rates at all off-street parking facilities where there is surplus capacity in the supply of parking and the issuance of permits does not compromise the ability to meet short-term parking demands; 4. The Board of Directors of Toronto Parking Authority approve the modified rates for on-street parking locations identified in Attachments 2 and 2-3; 5. The Board of Directors of Toronto Parking Authority approve the modification to the parking meter or parking machine hours for the specific on-street parking locations identified in Attachment 2-2 to this report and; 6. The Board of Directors of Toronto Parking Authority to direct the President, Toronto Parking Authority to submit bills to City Council to make amendments to the appropriate Chapters of the Toronto Municipal Code to implement the rates for on-street parking locations identified in Attachments 2 and 2-3 to this report; and modifications to the parking meter or parking machine hours for the specific on-street parking locations identified in Attachment 2-2 to this report.