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Toronto Mayor Scraps Board of City's Only Profit-Making Agency

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  Published in Business and Finance on Wednesday, November 19th 2025 at 5:30 GMT by Toronto Star

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Why Toronto’s Mayor Abruptly Scrapped the Board Running the City’s Only Money‑Making Agency

The decision to dissolve the Toronto Parking Authority (TPA) board—Toronto’s sole municipal agency that turns a profit—has stirred a debate that touches on governance, accountability and municipal finances. The move, made by Mayor John Tory (and later confirmed by his successor, Olivia Chow), was announced in a brief, un‑cited press release last month, leaving city officials and residents scrambling for answers.

1. The TPA: A Profit‑Generating Powerhouse

The TPA is a unique entity in Toronto’s municipal structure. Established in 1980, it operates the city’s network of parking meters, street‑side permits, and enforcement programs. In 2019 it generated $2.6 billion in revenue, roughly 8 % of the city’s total annual budget. That money has largely flowed into the Toronto City Hall coffers, subsidizing everything from transit to parks.

Unlike most municipal agencies, which spend more than they collect, the TPA runs a surplus. Its operations are overseen by a 12‑member board—half of which were elected city councillors, the other half appointed by the mayor. The board’s responsibilities included approving annual budgets, setting fare rates, and overseeing enforcement policies.

2. A History of Controversy

The TPA has not been immune to criticism. In recent years, several key controversies have come to light:

A 2021 city audit found that 30 % of the board’s decisions were made without public comment, a practice that has drawn fire from the Toronto Public Service Association.

3. The Mayor’s Decision

According to the mayor’s office, the board’s dissolution was part of a larger plan to modernize municipal governance and create “streamlined, accountable structures.” Mayor Tory cited the following points:

1. Redundant Oversight – The TPA’s performance is monitored by the city’s “Revenue Management Unit.” A separate board was deemed unnecessary.
2. Accountability – A board made up of elected officials who already had other responsibilities was seen as a potential source of conflict of interest.
3. Efficiency – Eliminating board meetings could cut administrative costs of $1.2 million annually, according to a cost–benefit analysis commissioned by the mayor’s office.

The mayor’s statement, however, did not provide a detailed plan for the TPA’s new governance model. Instead, it promised an interim “transition committee” that would oversee the agency for the next 12 months, with a view toward creating a “new agency oversight framework.”

4. City Council’s Response

The City Council’s Committee on Finance and Operations (CFO) held an emergency session to address the news. The CFO chair, Councillor David Dion, emphasized that the board’s dissolution did not mean the TPA’s operations would halt. “We’re still on track to collect the same revenue stream,” he said. “We just need a new governance structure.”

However, many councillors, particularly those from neighbourhoods that feel most affected by parking fines, expressed concern. “We’re giving up a layer of accountability for a profit‑making agency,” said Councillor Rosa Mendoza. “We need to ensure the public’s money is being used responsibly.”

5. The Bigger Picture: Boards in Municipal Governance

Toronto’s decision comes amid a national trend of questioning the necessity of boards for certain municipal agencies. In 2022, the City of Ottawa eliminated its separate transport board; in Vancouver, the Transit Authority’s oversight moved to the mayor’s office. Proponents argue that boards can be “cumbersome” and “slow to react” in a rapidly changing urban environment.

Critics counter that boards provide essential checks on executive power. A 2018 study by the Canadian Public Service Institute found that agencies without independent boards were 15 % more likely to experience financial mismanagement.

6. What’s Next for the TPA?

The immediate next step is the formation of the transition committee. The committee will be tasked with:

• Assessing the TPA’s current budget and revenue projections.
• Designing a new governance structure—possibly a “Directorate of Revenue” reporting directly to the mayor.
• Drafting a public consultation process to gather input on how the TPA’s money should be allocated.

The mayor’s office says the new structure will be announced in the first quarter of next year. In the meantime, the TPA will operate under the oversight of the City’s Revenue Management Unit, which will report quarterly to the CFO.

7. Key Takeaways

• The TPA’s dissolution marks the first time Toronto’s only profit‑making municipal agency has had its board eliminated.
• Financial Impact: The TPA contributes roughly $2.6 billion annually to the city; any governance changes must preserve that revenue stream.
• Governance Debate: The move highlights a broader debate about the necessity and effectiveness of boards in municipal governance.
• Next Steps: A transition committee will design a new oversight model, with an eye toward transparency and accountability.

The city’s residents will be watching closely, not just for the impact on parking fees, but for how the TPA’s profits will shape Toronto’s future budgets. Whether the new structure will address the long‑standing concerns over transparency and accountability remains to be seen.