Ontario Construction News staff writer
The City of Toronto’s 2024 Corporate Asset Management Plan (AMP), reporting a $26 billion infrastructure funding gap, was unanimously adopted by city council last week.
The report identifies the value of non-core infrastructure assets at $73 billion and forecasts that an average annual investment of $4 billion is needed to maintain assets in good condition – a contrast with the average annual planned state of good repair (SOGR) funding of $1.4 billion in the 2024 budget, revealing an investment gap of approximately $2.6 billion per year or $26 billion in the next decade.
“While the Ontario-Toronto New Deal is a significant first step toward the city’s stable and sustainable financial future and recent Government of Canada funding for refugee claimant support are welcome, I remain committed to ongoing discussions with our partners to secure Toronto’s financial future, especially on shared priorities such as transit and affordable housing,” said Mayor Olivia Chow. “A new funding model that recognizes the City’s complexity, diversity and significant contribution to the success of the region, province and country is needed. The most significant gap identified in this report is transit infrastructure.
“The city and province have committed $750 million each to purchase new subway cars for Line 2, yet we are still waiting for a funding commitment from the Government of Canada – every day that this purchase is delayed by this lack of commitment risks both the economic and climate benefits of safe, reliable public transit infrastructure.”
Findings are consistent with the city’s long term financial plan and past budget process where investments in SOGR have been a priority. Recent actions taken to address asset renewal needs include:
- Dedicated $26 billion (52 per cent) of the 10-Year Capital Budget and Plan to SOGR needs, nearly doubling SOGR investments over the past 10 years.
- Added $1.6 billion in additional SOGR funding to the 10-Year Capital Budget and Plan during the 2024 Budget process.
- Eliminated the City’s single largest SOGR liability with the Ontario-Toronto New Deal’s upload of the Gardiner Expressway to the province that saves nearly $2 billion which will be allocated to critical asset renewal guided by a capital prioritization framework and asset management plan.
- Developing a capital prioritization framework that will be integrated with the 2025 corporate asset management plan to enhance existing prioritization processes and strategic decisions on when and where to prioritize capital infrastructure investments.
To comply with provincial regulations, the 2024 Corporate AMP reports on the costs required to maintain current levels of service.
More information on the City’s 2024 Corporate AMP is available on the City’s website: https://secure.toronto.ca/council/agenda-item.do?item=2024.EX14.6.
“As Canada’s largest city and the economic driver of the country, Toronto faces unique financial pressures,” said Councillor Shelley Carroll, budget chair. “We need tools that grow with our economy to secure a vibrant and affordable future for the people of Toronto. Without these tools and the support of all levels of government, our city infrastructure is at risk. I look forward to continued partnership with the Province of Ontario and Government of Canada to protect and provide the services Torontonians rely on.”