Toronto city council says it is developing a new digital payment strategy after a report by the Auditor General uncovered various operational issues with the system it currently uses to process parking tickets, property taxes and utility bills.
The city awarded U.S. based tech company PayIt the contract to launch MyToronto Pay, an online payment platform in 2022.
However, according to the Toronto Star, the software is set to be decommissioned in June 2025, when the current contract expires.
The auditor general’s report found that the platform fell short in the savings and revenue estimates that its supporters predicted it would bring.
“The City has achieved limited savings, operational efficiencies, and reduced compliance costs because most pre-existing payment processes and systems remain in place, and counter services are still open and hours remain the same as before,” the report found.
It also says that former senior members of staff agreed to work with PayIt without permission from council, and failed to properly notify competitors of the opportunity to win the contract.
Moreover, the findings suggest that past city management brushed off concerns from staff, about the legality of PayIt’s bid based on Toronto’s unsolicited proposal policy.
The city confirmed to Now that plans are already underway to build an improved payment system.
“A new digital payment strategy is currently being developed and is anticipated to be presented to City Council in early 2025. If vendor support is required for its implementation, the City will proceed with an open and competitive procurement process,” it said in an email statement on Wednesday.
Going forward, the Auditor General is recommending that the municipal government improves the way it “plans, governs, and executes its large, City-wide technology projects,” by implementing a “robust governance framework…clear guidelines or protocols of division’s responsibilities for ensuring contract compliance, and monitoring of the achievement of required service levels.”
The City said it acknowledges the Audit Committee’s recommendation to decommission the MyToronto Pay platform and will follow the direction provided by the Audit Committee and City Council in November.
