Toronto is making headway in closing the massive infrastructure funding gap threatening its future. Thanks to a new agreement with the province, the city is feeling optimistic about its assets, despite not being completely out of the woods yet.

"We've added $8 billion more to repair our city and prevent further deterioration—which is crucial," stated Mayor Olivia Chow during a press briefing unveiling Toronto's 2025 Corporate Asset Management Plan.

The latest $59.6 billion infrastructure strategy earmarks a significant $32.4 billion specifically for urgent repairs to aging roads, bridges, playgrounds, and recreational facilities. Yet, even with this progress, the city still faces a daunting $17.9 billion deficit in its ten-year state-of-good-repair plan.

The good news? This amount is $8.1 billion less than last year's figure, primarily due to the provincial government returning responsibility for the Don Valley Parkway and Gardiner Expressway back to Toronto.

"That’s a remarkable 31% reduction—$8 billion more access means we’re narrowing that gap and preventing further decline," Chow added. "While we still have a significant shortfall, at least we’re taking steps to address it."

However, over half of the ongoing $18 billion shortfall stems from transit needs, with a staggering $11 billion just for that sector. The shortfalls extend to Toronto Community Housing ($4 billion), the road network ($2 billion), and city facilities ($1 billion).

The report examines the condition of $215 billion worth of city assets, finding that most are rated as 'fair,' meaning they’re generally functional but not without issues.

Alarmingly, certain critical assets are lagging. For example, only 44% of Toronto Paramedic Services’ assets are rated as fair or better, and just 50% for the Toronto Police Service. Even more concerning, only 16% of the city's dock walls and breakwaters are deemed in acceptable condition.

With many assets nearing the end of their lifecycle, the city is dealing with soaring maintenance costs. However, officials assure that the aging infrastructure does not present immediate health and safety risks.

Mayor Chow emphasized that the new provincial agreement has not only helped to significantly reduce the repair shortfall but also sparked interest from the federal government as a 'silent partner' in key infrastructure projects, including new subway trains.

In light of Prime Minister Mark Carney's recent discussions with U.S. President Donald Trump, Chow expressed hope that the federal government will continue to invest in Toronto's infrastructure needs.

"Toronto is critical to Ontario and Canada’s economy—investing here is investing in a resilient national future," Chow said.

The report fulfills a provincial mandate effective July, requiring municipalities to outline proposed service levels in their asset management plans—a step that will facilitate better future planning for Toronto’s infrastructure revitalization.

Chow's Executive Committee will review the plan on May 13, with a crucial City Council meeting to follow on May 21.