Item - 2026.EX33.15

The Executive Committee recommends that:

1. City Council direct that the 2024 operating surpluses totalling $204,163 from three Arenas (George Bell, William H. Bolton and Forest Hill) be paid to the City of Toronto and be used to partially fund the payment of operating deficit of $201,746 for four Arenas (McCormick, Moss Park, Ted Reeve and North Toronto), resulting in a net operating surplus of $2,417 payable to the City, as illustrated in Appendix A to the report (July 7, 2026) from the Chief Financial Officer and Treasurer.

2. City Council direct that the net operating surplus of $210,055 of Leaside Arena be used as a prepayment of the loan principal outstanding balance as illustrated in Appendix A to the report (July 7, 2026) from the Chief Financial Officer and Treasurer.

On an annual basis, the City of Toronto receives the audited financial statements from eight Arena Boards of Management. The audited financial statements assist the City to determine whether additional operating subsidy payments need to be provided to or clawed back from the Arenas to settle their operating deficits or surpluses. City staff report annually on the Arenas' operating surpluses and deficits once the respective Boards financial statements have been audited and approved by Council. The audited financial statements are based on the Public Sector Accounting Board requirements for government not-for-profit entities while the operating deficits or surpluses align with the modified cash basis of accounting.

This report recommends the settlement of eight of the Arenas' operating surpluses and deficits for 2024 based on their audited financial statements for the year ended December 31, 2024, with operating surpluses payable to the City and operating deficits funded by the City upon Council’s approval.