Message from the Executives
FROM THE CEO: TTC Board Highlights
This was a challenging budget to prepare and some difficult decisions had to be made. In the face of lower ridership and revenues, and the pressure to ensure that our transit system is safe and accessible, Commissioners approved a budget that achieves a number of goals.
First, we’ll invest more than $4 million for safety, security and cleanliness. This includes hiring 10 additional Streets to Homes outreach workers, adding 25 new Transit Special Constables and filling 25 vacant constable positions. We’re also introducing enhanced daily cleaning on the streetcar fleet.
Second, we’ll dedicate $3 million to service improvements on routes serving Neighbourhood Improvement Areas as well as expand the Fair Pass program to cover an additional 50,000 lower income Torontonians.
Third, we’ve earmarked $43 million to cover the opening of Line 5 Eglinton Crosstown and Line 6 Finch West, and the bus replacement of Line 3 Scarborough RT.
Fourth, we’ll deliver 91 per cent of pre-pandemic service levels even as ridership is projected to reach just 75 per cent of pre-pandemic norms at the end of the year.
And lastly, the TTC Board approved a 10-cent fare increase on single cash and PRESTO rides while freezing fares for seniors, Fair Pass program users and those with PRESTO monthly and annual passes. The 10-cent fare increase will come into effect on April 3.
Commissioners also approved our proposed 2023-2032 Capital Budget and Plan. The 2023 portion of the $12.5-billion Plan is worth approximately $1.3 billion. It contains major capacity enhancements and fleet procurement projects while ensuring that the majority of the budget is invested in the state of good repair of existing assets – that means fixing what we have while building for the future.
The capital budget report also updates the 15-year, $38-billion Capital Investment Plan and the Real Estate Investment Plan, a 15-year strategic roadmap that supports the Capital Investment Plan.
City Council votes on the TTC Budgets next month. Please see below for highlights of Commission decisions approved on January 9. Our next Board Meeting is next Thursday on January 19.
The year has already started out as a busy one. I hope everyone had the opportunity to take some time to relax over the holiday break.
Richard J. Leary
Chief Executive Officer
January 13, 2023
TTC Board Highlights
TTC Special Board Meeting January 9, 2023
TTC Board approves TTC 2023 Budgets
The Board approved the TTC’s 2023 Operating, Wheel-Trans and Capital Budgets. The budgets will be forwarded to the City Budget Committee and the City Manager as the official submissions for the TTC. Here is what was approved:
2023 TTC Conventional and Wheel-Trans Operating Budgets
• Approved the recommended 2023 TTC Conventional Operating Budget of $2.237 billion in gross expenditures, $1.048 billion in revenues and a net funding requirement of $1.189 billion, inclusive of the $366.0 million TTC Conventional COVID-19 financial impact.
• Approved the recommended 2023 Wheel-Trans Budget of $142.8 million in gross expenditures, $6.5 million in revenues and a net funding requirement of $136.3 million, inclusive of the $0.4 million Wheel-Trans COVID-19 financial impact.
• Request the Provincial and Federal governments to continue to invest in public transit by:
- Providing relief to offset the financial impacts of COVID-19 recovery, which are estimated to be $366.4 million in 2023, with forecasted impacts expected into 2024 and 2025; and
- Continuing to work with the TTC and the City of Toronto to develop a long-term sustainable funding model for public transit.
• Approved a 10-cent fare increase, on adult and youth single fares only, excluding fares for seniors, Fair Pass riders and all passes effective April 3, 2023, generating $16.1 million in passenger revenues, net of PRESTO commissions.
• Approved a 2023 year-end workforce complement of 16,787 positions, reflecting an increase of 36 operating positions and an increase of 240 positions for capital project delivery.
The Board also passed a motion by Commission Fenton Jagdeo requesting staff to undertake the development, presentation and funding options for a strategic marketing plan. The plan should communicate to existing and prospective customers, funders and the public at large the benefits of transit, with the goals of retaining and increasing ridership and transit investments in order to create jobs, reduce traffic congestion, improve air quality and health outcomes, reduce greenhouse gas emissions and improve equity for all.
TTC 15-Year Capital Investment Plan, Real Estate Investment Plan Update and 2023-2032 Capital Budget and Plan
• Endorsed the TTC 2023-2037 Capital Investment Plan of $38.046 billion.
• Endorsed the TTC 2023-2037 Real Estate Investment Plan Update, including the implementation timeline.
• Approved the staff recommended 2023 Capital Budget of $1.253 billion and future year planned estimates of $11.087 billion, for a total TTC 2023-2032 Base Capital Budget and Plan of $12.340 billion.
• Approved the staff recommended TTC 2023 Capital Budget of $88.186 million and future year planned estimates of $62.780 million, for a total TTC 2023-2032 Capital Budget and Plan of $150.966 million for Transit-Related Expansion Projects, including the completion of the remaining scope for the Toronto-York Spadina Subway Extension, the SRT Life Extension Overhaul and Line 3 bus replacement plan; and the Waterfront Transit planning.
• Approved a 2023 year-end capital complement of 2,910 positions, reflecting an increase of 240 positions for capital project delivery.
• Renew its delegated authority to the TTC Chief Executive Officer to:
- Enter into contribution agreement(s), where required, with government partners to receive any net new funding/financing for the TTC’s Green Bus program; and
- Subject to commitment of matching funds from provincial and/or federal government partners, amend existing and pending contract(s) to increase the eBus procurement quantity and associated infrastructure works in proportion to any additional funds committed.
• Endorsed the TTC’s request to the Provincial and Federal governments for ongoing intergovernmental funding support to address the TTC’s unfunded state-of-good-repair backlog as identified in the 2023-2037 Capital Investment Plan, including as priority, to provide provincial and federal matching funds totalling $1.7 billion for the new subway train procurement, and up to $2.4 billion in funding for the requisite Train Maintenance Storage Facility.
• Forward the 2023-2037 Real Estate Investment Plan Update to CreateTO and City Real Estate Management staff for their information.
Next meeting of the TTC Board
The next scheduled TTC Board Meeting will be on Thursday, January 19.