January 10, 2023

Toronto Water’s key priorities are to deliver clean, safe drinking water, treat wastewater, and manage stormwater in an environmentally and fiscally responsible way for more than 3.6 million residents, businesses and visitors, as well as portions of York and Peel. The tabled 2023 Toronto Water capital budget is $1.38 billion and 10-year capital plan (2023 to 2032) is $15.5 billion.

Toronto Water Services

  • Provides approximately 435 billion litres of safe drinking water to more than 3.6 million residents and businesses in Toronto and portions of York and Peel annually.
  • Collects and treats approximately 400 billion litres of wastewater from sources such as toilets, dishwashers and washing machines every year.
  • Protects the environment and private property through stormwater management programs, including the Basement Flooding Protection Program and the Wet Weather Flow Management Program and other initiatives.

The tabled 2023 budget and 2024-2032 capital plan includes:

  • $7.632 billion investment for state-of-good-repair (SOGR) projects, including replacement or rehabilitation of aging watermains and sewers, and investment in aging water and wastewater facilities.
  • $5.138 billion for projects to improve services, including $2.108 billion in Basement Flooding Protection Program projects and $2.182 billion for other stormwater management projects, which include supporting the Don River and Central Waterfront project.
  • $1.989 billion for projects that support Toronto’s growth.
  • $782 million for compliance projects related to legislative and health and safety requirements.

Budget Overview

The tabled 2023 Toronto Water budget consists of:

  • An operating budget of $484.37 million plus a capital reserve contribution of $999.37 million for a total operating budget of $1.48 billion.
  • A fully funded capital budget of $1.38 billion (gross) (spent on water, wastewater and stormwater infrastructure projects).
  • A capital reserve used for construction of new assets and the development and renewal of existing infrastructure.
  • A 10-year (2023 to 2032) capital plan of $15.5 billion that includes:
  • $4.0 billion for water treatment and supply
  • $7.2 billion for wastewater treatment and collection, including:
    • $3.9 billion for wastewater treatment plant upgrades
    • $2.7 billion for sewer replacement and rehabilitation, and trunk sewer rehabilitation.
  • $4.3 billion for stormwater management including programs such as:
    • $1.77 billion for Wet Weather Flow program (includes Don River & Central Waterfront project)
    • $2.11 billion Basement Flooding Protection program.

Rate Overview

  • The tabled 2023 Toronto Water operating and capital budget includes a three per cent rate increase. This rate increase was approved by City Council on an interim basis in December 2022 and came into effect January 1, 2023.
  • Toronto Water services are rate supported. There is no reliance on property taxes to support Toronto Water operating and capital budgets including infrastructure replacement and renewal.
  • The rate increase will ensure that the City can continue to provide quality drinking water and wastewater treatment services, while dealing with the impact of extreme storms, aging infrastructure and significant city growth.
  • Toronto Water’s 2023 budget invests funding into the capital program while keeping the operating budget stable.
  • For the average Toronto household using 230 cubic metres of water per year, costs in 2023 will be as follows:
    • Projected average daily cost of $2.76 (a daily eight-cent increase from 2022)
    • Projected annual cost of $1,009 (a $29 annual increase from 2022).

Key investments

Program 2023 10-Year Plan
Infrastructure State of Good Repair funding* $672 million $7.63 billion
Water and Wastewater Treatment Plant upgrades $331.7 million $4.46 billion
Watermain and Sewer (including trunk mains) $384.9 million $4.74 billion
Wet Weather Flow Management Program (includes Don River & Central Waterfront project) $113.1 million $1.77 billion
Basement Flooding Protection Program $225.3 million $2.11 billion

*The Toronto Water budget provides for state-of-good-repair funding of $672 million in 2023 and $7.6 billion in the 10-year plan, reducing the backlog to $492 million by 2032.

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