The future of Toronto's widely used bicycle-sharing system could be on the rocks amid tension between the City and one of its agencies over their profit-sharing agreement, according to a new CBC report.

The conflict boils down to disagreements over how to share the millions of dollars accumulated by publicly-owned parking lots.

The Toronto Parking Authority (TPA) is arguing for a new profit-sharing agreement, noting that it will need to "defer over $14 million" in capital spending if a new plan is not finalized. 

The cuts could specifically impact Bike Share Toronto, which is operated by the TPA and offers 24/7 access to over 9,000 bikes at 700 stations across Toronto. 

According to the CBC, the last profit-sharing agreement between the TPA and the City expired in 2019. However, its terms remain in effect and require the agency to give $38 million per year to the City, or 85 per cent of its profits, whichever is greater. 

In a report, the TPA argues that the previous profit-sharing agreement reached in 2017 does not take into account the new duties given to the agency by the City since. 

"The time for that new deal is now," Jeffrey Dea, the agency's vice president of growth and strategy said in a meeting last month. "The 85 per cent tax is punitive given the expanded mandate that we have." 

Along with the larger scope of duties, the TPA says it is dealing with a "$300 million state of good repair backlog" for its parking lots, and also needs to replace 3,000 aging Pay & Display machines, according to CBC. 

In a statement, the City said that it will continue to work with the agency to finalize a new profit-sharing agreement, and that more information will be provided at a meeting of the TPA board on May 28.