The City of Toronto’s 2024 Corporate Asset Management Plan (AMP) finds that, absent new sources of funding, the city’s infrastructure gap could grow to as much as $26 billion over the next 10 years.

The report, which was unanimously adopted by Toronto City Council, identifies the need to continue to invest in the infrastructure that Torontonians rely on.

It estimates the value of the city’s non-core infrastructure assets at $73 billion and forecasts that an average annual investment of $4 billion is needed to maintain these assets in good condition to provide their current levels of service.

This contrasts with the average annual planned state of good repair (SOGR) funding of $1.4 billion in the city’s 2024 Budget, revealing an investment gap of approximately $2.6 billion per year or $26 billion in the next decade. 

The city says the findings in the asset management plan are consistent with its long-term financial plan. To date, the city has taken a number of steps to address its asset-renewal needs. These include dedicating 52% of its 10-year capital budget and plan to SOGR needs. The resulting $26 billion nearly doubles SOGR investments over the past 10 years. 

The city has also eliminated its single largest SOGR liability – the Gardiner Expressway – by uploading the asset to the Ontario Government as part of the Ontario-Toronto New Deal. Doing so saves the city nearly $2 billion, money that will be allocated to critical asset renewal guided by a capital prioritization framework and asset management plan.

Finally, the city has developed a capital prioritization framework that will be integrated with the city’s 2025 Corporate Asset Management Plan to enhance its existing prioritization processes and strategic decisions on when and where to prioritize capital infrastructure investments.

“While the Ontario-Toronto New Deal is a significant first step toward the city’s stable and sustainable financial future, 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. Both the City and the province have committed $750 million each to fund the purchase of 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.”

The city’s 2024 Corporate AMP includes all municipal infrastructure assets under the direct ownership of the city, excluding core infrastructure assets such as water, wastewater, stormwater, roads, bridges and culverts.