Toronto Transit Commission Board
The full agenda, as filed
All 2 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.
TTC12.1amended
Recommended 2026 TTC Conventional and Wheel-Trans Operating Budgets
The recommended 2026 Operating Budget outlines the funding required to deliver Toronto Transit Commission (TTC) Conventional and Wheel-Trans services. The budget reflects current service needs, ridership trends, financial performance, economic conditions, and available funding. It also aligns with the Board's priorities and the TTC 2024-2028 Corporate Plan. The recommended 2026 Operating Budget is $3.028 billion, supported by $1.547 billion in revenues, resulting in a net City funding requirement of $1.481 billion, as illustrated in Table 1. Table 1 Recommended 2026 Operating Budget $Millions Gross Revenue Net TTC Conventional 2,825.9 1,536.6 1,289.2 Wheel-Trans 201.7 10.3 191.4 Total Operating Budget 3,027.5 1,546.9 1,480.6 A key focus of the 2026 Operating Budget is maintaining and enhancing affordability for customers while preserving and building on recent service enhancements. Building on the TTC's commitment to fare stability, the budget freezes fares for the third consecutive year and introduces fare capping effective September 1, 2026. Fare capping will limit a customer's monthly fares, providing frequent riders with predictable and lower transit expenses. This initiative marks the start of a multi-year approach to improving affordability and access to transit. To maintain affordability, reliability and accessibility, the 2026 Operating Budget: Freezes fares for the third consecutive year, ensuring affordability for TTC riders. Introduces fare capping, eliminating upfront costs and reducing costs for customers by limiting monthly fares after 47 trips. Increases service hours by 2.0%, for a total of 9.9 million hours, to address congestion, adapt to changing travel patterns, deliver world-class service during the FIFA World Cup, and achieve 426.4 million rides in 2026. Sustains prior year service enhancements, including peak capacity increases on Lines 1 and 2, safety and security measures, and extending cleanliness and reliability pilots. Supports the first full year of operations for Line 5 Eglinton and Line 6 Finch West, with costs fully offset by Provincial funding under the Ontario-Toronto New Deal Agreement. Expands Wheel-Trans service to deliver an estimated 4.4 million rides, reflecting an 8.7% increase in demand over the 2025 Budget. Delivers $87.3 million in cost savings through expenditure reviews and efficiency measures that do not impact customers, supplemented by a $35.0 million draw from the TTC Stabilization Reserve Fund. These measures allow the TTC to enhance affordability for riders, sustain service levels, manage inflationary pressures and slower-than-expected ridership growth in 2025 and ongoing operating challenges. TTC Conventional Service represents $2.826 billion or approximately 93% of gross expenditures, while Wheel-Trans represents the remaining 7% of gross expenditures or $201.6 million. About 42% of the Operating Budget is funded through TTC own source revenues, including approximately 39% from passenger fare and ancillary revenues and 3% from TTC Stabilization Reserve and TTC Long-Term Liability Reserve funding. Provincial Funding contributions make up approximately 9% of the budget, reflecting the third year of the Ontario-Toronto New Deal Agreement. The remaining 49% is supported by the City's property tax base. Chart 1 illustrates how the 2026 Operating Budget is allocated to fund TTC Conventional Service and Wheel-Trans Service.
The TTC Board: 1. Approved the recommended 2026 Operating Budget totalling $3.028 billion in gross expenditures, $1.547 billion in revenues and a net funding requirement of $1.481 billion for the TTC comprising the following services, as summarized in Appendix A of this report: a. 2026 TTC Conventional Operating Service Budget of $2.826 billion in gross expenditures, $1.537 billion in revenues and a net funding requirement of $1.289 billion; and, b. 2026 Wheel-Trans Operating Budget of $201.6 million in gross expenditures, $10.3 million in revenues and a net funding requirement of $191.4 million. 2. Approved a 2026 year-end Operating workforce complement of 15,299 positions. 3. Approved the implementation of monthly fare capping through PRESTO, effective September 1, 2026, whereby customers who pay per trip will not be charged for additional trips after completing 47 paid rides within a calendar month, consistent with the equivalent value of a Monthly Pass. 4. Approved the related fare policy and product changes outlined in Appendix E of this report that are required to support monthly fare capping, including: a. Aligning pass products with the new capped structure; and b. Phasing out or restructuring any products that duplicate benefits of the cap. 5. Directed the Chief Executive Officer to undertake all activities necessary to implement monthly fare capping in collaboration with Metrolinx, including system configuration, customer-facing materials, operational readiness, and communications. 6. Directed staff to report back to the TTC Board following the first year of monthly fare capping with an assessment of impacts on ridership, revenue, equity outcomes, customer experience, and any recommended fare policy adjustments. 7. Reaffirmed requests to the Federal and Provincial Governments for a tri-partite development of a sustainable, long-term funding model for public transit capital and operation's needs. 8. Delegated authority to the Chief Executive Officer to execute any transfer payment and/or contribution agreements required with the Province of Ontario and/or the Government of Canada to receive intergovernmental funding for priority projects and programs, subject to terms and conditions satisfactory to the TTC's General Counsel. 9. Forwarded this report to the City Budget Committee and the City Manager as the official 2026 Operating Budget submission for the Toronto Transit Commission. 10. Given that: The TTC budget is under immense and growing pressure, It costs the TTC about $20 million/ year to accept cash fares ($10 million in operating costs and $10 million in lost revenue from fare cheating (partial payment)), Many transit systems in Ontario and around the world no longer accept cash fares, and Since 2023, Open Payment has meant that multiple payment alternatives are available to ensure equity and accessibility for TTC customers who don't have easy access to a PRESTO outlet, including prepaid credit cards that are widely available without credit checks or bank accounts, The TTC should consult the public on their preferred option for spending this $20 million/year, including options such as: continuing to accept cash fares, expanding Fair Pass, or improving wayfinding, and report back to the TTC Board as part of the Q1 2027 Fare Modernization Update with recommendations on whether, when and how to fairly phase out cash fares. 11. The TTC Board directed that the CEO work with the City Manager to explore and report back to the Strategic Planning Committee as part of the 2027 budget process and in advance of the 2027 budget with opportunities to strengthen the accountable and transparent relationship between the TTC and the City of Toronto, including consideration of mechanisms to formalize agreements between both entities on key performance indicators, verification/auditing, service levels, safety and customer experience.
Staff recommendation as filed
It is recommended that the TTC Board: 1. Approve the recommended 2026 Operating Budget totalling $3.028 billion in gross expenditures, $1.547 billion in revenues and a net funding requirement of $1.481 billion for the TTC comprising the following services, as summarized in Appendix A of this report: a. 2026 TTC Conventional Operating Service Budget of $2.826 billion in gross expenditures, $1.537 billion in revenues and a net funding requirement of $1.289 billion; and, b. 2026 Wheel-Trans Operating Budget of $201.6 million in gross expenditures, $10.3 million in revenues and a net funding requirement of $191.4 million. 2. Approve a 2026 year-end Operating workforce complement of 15,299 positions. 3. Approve the implementation of monthly fare capping through PRESTO, effective September 1, 2026, whereby customers who pay per trip will not be charged for additional trips after completing 47 paid rides within a calendar month, consistent with the equivalent value of a Monthly Pass. 4. Approve the related fare policy and product changes outlined in Appendix E of this report that are required to support monthly fare capping, including: a. Aligning pass products with the new capped structure; and b. Phasing out or restructuring any products that duplicate benefits of the cap. 5. Direct the Chief Executive Officer to undertake all activities necessary to implement monthly fare capping in collaboration with Metrolinx, including system configuration, customer-facing materials, operational readiness, and communications. 6. Direct staff to report back to the TTC Board following the first year of monthly fare capping with an assessment of impacts on ridership, revenue, equity outcomes, customer experience, and any recommended fare policy adjustments. 7. Reaffirm requests to the Federal and Provincial Governments for a tri-partite development of a sustainable, long-term funding model for public transit capital and operation's needs. 8. Delegate authority to the Chief Executive Officer to execute any transfer payment and/or contribution agreements required with the Province of Ontario and/or the Government of Canada to receive intergovernmental funding for priority projects and programs, subject to terms and conditions satisfactory to the TTC's General Counsel. 9. Forward this report to the City Budget Committee and the City Manager as the official 2026 Operating Budget submission for the Toronto Transit Commission.
TTC12.2adopted
This report presents the recommended 2026-2035 Capital Budget and Plan for the TTC. It seeks the Board's approval of a 2026 Capital Budget and 2027-2035 planned estimates to fund the acquisition, rehabilitation and renewal of the TTC's assets required to deliver transit service in Toronto. This report also seeks the Board's endorsement of the TTC's updated 2026-2040 Capital Investment Plan and companion 2026-2040 Real Estate Investment Plan. 2026-2035 Capital Budget and Plan Highlights The 2026-2035 Capital Budget and Plan totals $16.657 billion, including a 2026 Capital Budget of $1.635 billion. This 10-year Capital Plan allocates 63% toward maintaining transit in a state of good repair, 4% for safety and legislated requirements, and 33% for service improvement and growth-related projects. The prioritization of funding within the 2026-2035 Capital Budget and Plan has been developed in alignment with the Prioritizing TTC Asset State of Good Repair to Keep the System Moving Reliably: Outlook for Capital Budget 2026 report, presented at the Strategic Planning Committee meeting on September 4, 2025. In this report, the most immediate five-year needs for Health and Safety, Legislative, and State of Good Repair were identified, with the most critical items including: Immediate State-of-Good-Repair Priorities Requiring Funding in Next 5 Years Conventional and Wheel-Trans bus fleet replacements and associated charging infrastructure in alignment with asset life cycle replacement requirements. Critical subway systems (signals, electrical and communications) and equipment (escalators, elevators, ventilation and subway pumps/backflow preventers) to maintain reliability and customer experience. Facility renewal programs including roofing rehabilitation, HVAC replacements, overhead doors, safety systems and infrastructure renewal projects to maintain asset integrity. Streetcar track replacement in the first five years for reliable streetcar service. The recommended 2026-2035 Capital Budget and Plan therefore adds $1.736 billion in incremental funding to address outstanding needs, with $1.362 billion (or 79%) being dedicated to crucial State of Good Repair, and Safety and Legislative needs, including: $302.8 million for subway, bus, and streetcar vehicle overhaul programs $168.8 million for crucial subway and surface track replacement $253.4 million for traction power, signaling, communications and power distribution asset replacement/rehabilitation $141.6 million for facility rehabilitation/modifications Addressing State of Good Repair (SOGR) is essential for service reliability, which is why the TTC continues to place the highest priority on meeting health and safety, legislative and state-of-good-repair needs first. However, the scale of SOGR investment still required is crowding out the opportunity to advance needed capacity enhancement investments to keep up with population growth and capture more ridership long term. While progress has been made in addressing the TTC's unfunded capital priorities, sustained and predictable funding is still critical to address the remaining capital needs constraints. The Capital Investment Plan (CIP), which lays out the TTC's capital needs over a 15-year period, is $53.994 billion or $616 million higher than the $53.378 billion identified in the 2025 CIP. Of the $53.994 billion CIP, unfunded capital investments amount to $37.336 billion over the 15-year planning horizon, highlighting a significant gap in long-term financial support. Emphasis must continue to be placed on the requirement for a tri-partite approach to developing a sustainable public transit funding model that is predictable and supports the long-term viability of the TTC.
The TTC Board: 1. Endorsed the TTC 2026-2040 Capital Investment Plan of $53.994 billion, as outlined in Attachment 1 of this report; 2. Endorsed the TTC 2026-2040 Real Estate Investment Plan Update, including the implementation timeline, as outlined in Attachment 2 of this report; 3. Approved a 2026 Capital Budget of $1.635 billion and future year planned estimates of $15.022 billion for a total TTC 2026-2035 Capital Budget and Plan of $16.657 billion, comprising the following, as outlined in Appendix B of this report: a. A 2026 Capital Budget of $1.606 billion and future year planned estimates of $14.916 billion, for a total TTC 2026-2035 Base Capital Budget and Plan of $16.522 billion; and b. A 2026 Capital Budget of $28.7 million and future year planned estimates of $106.3 million, for a total TTC 2026-2035 Capital Budget and Plan of $135.0 million for Transit-Expansion-Related Projects. 4. Approved a 2026 year-end capital workforce complement of 3,345 positions, reflecting an increase of 60 capital positions, as summarized in Appendix D; 5. Reaffirmed requests to the Federal and Provincial Governments for a tri-partite discussion on the development of a sustainable, long-term funding model for public transit capital and operations needs; 6. Delegated authority to the Chief Executive Officer to execute any transfer payment and/or contribution agreements required with the Province of Ontario and/or Government of Canada to receive intergovernmental funding for priority projects and programs and amend the 2026-2035 Capital Budget and Plan to include the funding, subject to terms and conditions satisfactory to the TTC's General Counsel; and; 7. Forwarded this report to the City Budget Committee and the City Manager as the official 2026-2035 Capital Budget and Plan submission for the Toronto Transit Commission.
Staff recommendation as filed
It is recommended that the TTC Board: 1. Endorse the TTC 2026-2040 Capital Investment Plan of $53.994 billion, as outlined in Attachment 1 of this report; 2. Endorse the TTC 2026-2040 Real Estate Investment Plan Update, including the implementation timeline, as outlined in Attachment 2 of this report; 3. Approve a 2026 Capital Budget of $1.635 billion and future year planned estimates of $15.022 billion for a total TTC 2026-2035 Capital Budget and Plan of $16.657 billion, comprising the following, as outlined in Appendix B of this report: a. A 2026 Capital Budget of $1.606 billion and future year planned estimates of $14.916 billion, for a total TTC 2026-2035 Base Capital Budget and Plan of $16.522 billion; and b. A 2026 Capital Budget of $28.7 million and future year planned estimates of $106.3 million, for a total TTC 2026-2035 Capital Budget and Plan of $135.0 million for Transit-Expansion-Related Projects. 4. Approve a 2026 year-end capital workforce complement of 3,345 positions, reflecting an increase of 60 capital positions, as summarized in Appendix D; 5. Reaffirm requests to the Federal and Provincial Governments for a tri-partite discussion on the development of a sustainable, long-term funding model for public transit capital and operations needs; 6. Delegate authority to the Chief Executive Officer to execute any transfer payment and/or contribution agreements required with the Province of Ontario and/or Government of Canada to receive intergovernmental funding for priority projects and programs and amend the 2026-2035 Capital Budget and Plan to include the funding, subject to terms and conditions satisfactory to the TTC's General Counsel; and; 7. Forward this report to the City Budget Committee and the City Manager as the official 2026-2035 Capital Budget and Plan submission for the Toronto Transit Commission.