Item - 2021.PA26.2

The Board of Directors of Toronto Parking Authority:

1.  Approved the 2022 Operating Budget and 2022-2031 Capital Budget for Toronto Parking Authority, as outlined in the report (September 10, 2021) from the President, Toronto Parking Authority.

2. Forwarded the 2022 Operating Budget and 2022-2031 Capital Budget for Toronto Parking Authority, as outlined in the report (September 10, 2021) from the President, Toronto Parking Authority, to City Council.

3.  Deferred the 2021 comprehensive On-Street Rate Review to 2022.

4.  Held the current off-street daily rates into 2022; authorized the President, Toronto Parking Authority, to establish and implement the monthly rates as set out in Attachment 2 to the report  (September 10, 2021) from the President, Toronto Parking Authority; and authorized the President, Toronto Parking Authority, to issue monthly permits at car parks where occupancy allows.

5.  Directed that Confidential Attachment 1 to the report  (September 10, 2021) from the President, Toronto Parking Authority remain confidential in its entirety, as it pertains to personal matters about identifiable individuals, including municipal or local board employees, and labour relations or employee negotiations, and the security of property belonging to the City or one of its agencies or corporations.

The Board of Directors of Toronto Parking Authority recessed its public meeting to meet in closed session to consider this item as it pertains to Security of property belonging to the City or one of its agencies or corporations, labour relations or employee negotiations, and personal matters about identifiable individuals, including municipal or local board employees.

Management is forecasting a full year 2021 net income loss of $(9.5) million; $(7.3) million worse than budget and a decline of $(85.1) million compared to pre-pandemic 2019 net income.  Operating revenues forecasted at $78.5 million, or $(12.5) million worse than budget, following transaction volume declines of -23 percent versus prior year and -51 percent versus 2019. Cash reserves at the end of 2021 are forecasted to be $51.5 million due to management's continued focus on cash preservation and to ensure Toronto Parking Authority's operational obligations can be met; Toronto Parking Authority reserves are planned to be fully utilized in 2024.  As directed by City Council, Toronto Parking Authority will provide a $12 million dividend to the City of Toronto in 2021. These funds will be sourced through Toronto Parking Authority's cash reserves.

In 2022, Management is planning full year net income of $14.4 million with revenue improving to 72 percent of pre-pandemic (2019) levels. This net income will trigger a $12.2 million dividend to the City and has been included in Toronto Parking Authority's budgeted 2022 cash reserves forecast. Financially, and despite an improving top-line operating environment, Management will remain focused on driving cost productivity and cash preservation. Operationally, Management will be maniacally focused on delivering our five strategic platforms: Build a Great Place to Work, Strengthen the Core, Accelerating Growth and Financial Sustainability, Connecting with our Customers, and Engage and Innovating with our Strategic City Partners.

Critical projects identified within our strategic framework for 2022 include Talent Development, Health and Safety, fast tracking the deployment of Toronto Parking Authority's Electric Vehicle Charing Infrastructure, accelerating expansion of the Bike Share  program, and development and execution of our asset management plan.

This report also provides an executive summary of the On and Off-street rate reviews and responds to City Council direction for Toronto Parking Authority to carry out a market rate analysis of parking rate adjustments in coordination with the annual budget process.