Agenda

Membership:

Mayor Olivia Chow (Chair), Deputy Mayor Ausma Malik (Vice Chair), Councillor Paul Ainslie, Councillor Alejandra Bravo, Councillor Shelley Carroll, Councillor Mike Colle, Councillor Paula Fletcher, Councillor Joshn Matlow, Councillor Amber Morley, Councillor Gord Perks and Councillor Neethan Shan

Members of the public are invited to submit written comments or register to speak on any item listed on the agenda. For detailed information on how to participate in the Executive Committee meeting, including procedures for submitting comments or requesting to speak, please visit: Have Your Say at Council & Committee Meetings (https://www.toronto.ca/city-government/council/council-committee-meetings/have-your-say/)

toronto.ca/council

The Service Excellence Committee recommends that:

1. Executive Committee request the Executive Director, Customer Experience to report directly to the June 24, 25, and 26, 2026 meeting of City Council with a sample of standard simple public messaging for 311 inquiries for the public to understand that there is a cascading approach to all service requests based on urgency, size, danger and the effect on timelines.

2. City Council request the Executive Director, Municipal Licensing and Standards to prioritize noise complaints in subsequent 311 intake improvement initiatives.

At its meeting on May 14, 2026, the Service Excellence Committee considered Item SE12.1 and made recommendations to the Executive Committee.

Summary from the report (April 30, 2026) from the Executive Director, Customer Experience

This report responds to direction from the Executive Committee to provide a plan and phased approach to simplify the 311 service intake process by streamlining public-facing service categories and consolidating service codes, where appropriate. It also provides an overview of additional planned improvements to simplify how customers access and track City services through a clearer, more intuitive 311 intake experience across all 311 channels (phone, email, online, mobile app, X, and in person counters).

This work is being delivered through two complementary initiatives that will modernize the end to end 311 service request experience, improving access, efficiency and transparency for customers:

1. 311 Front-End Redesign: 

- A simpler, more intuitive self-serve experience through a redesigned customer-centric 311 on web and mobile app interfaces with Artificial Intelligence (AI) capabilities, serving as the City's intelligent front door.

- Includes an assessment of opportunities to streamline intake questions and public-facing 311 service request codes and categories across all Integrated Service Divisions (ISDs).

 2. Closing the Loop:

- Strengthened Closing the Loop practices, including more detailed service request milestones and more detailed progress updates to customers, to improve transparency, communication, and service continuity after a request is submitted across all Integrated Service Divisions.

The Customer Experience Division (CXD) has started implementing improvements in a phased approach, prioritizing high‑impact divisions including Parks (in Parks and Recreation), Municipal Licensing and Standards (MLS), Transportation Services, and Urban Forestry (in Environment, Climate and Forestry), with enhancements for both projects scaling across Integrated Service Divisions, including Community Recreation (a new Integrated Service Division coming by end of 2026) by the fourth quarter of 2027. This work will be informed by initial customer research and reflective of user needs, and ongoing measurement and customer feedback will inform continuous improvement to ensure the 311 service continues to evolve to meet customer needs and expectations.

By simplifying service intake, reducing the number of steps required to submit a service request, and streamlining service codes, these initiatives will reduce the time and effort required for customers to submit requests while improving the accuracy and reliability of intake. Although simplifying service intake will benefit customers using any 311 channel, it is particularly important for improving the self-serve experience. A clearer, more intuitive intake process makes it easier for customers to submit service requests correctly on the first attempt, increasing confidence and adoption of 311's digital channels.

At the same time, improvements to customer communications, transparency, and service continuity will ensure customers better understand what is happening with their requests, why work is being done, and what outcomes were achieved. Clearer milestones, improved navigation of service categories, and more consistent status updates will provide greater confidence in City services and manage expectations with clear and accurate timelines, reducing the need for follow‑up inquiries. Ultimately, these initiatives will ensure that customers accessing 311 services get an integrated, user-friendly experience, regardless of which or how many Integrated Service Divisions are involved with the completion of the service request.

Mayor Olivia Chow recommends that:

1. City Council, on a one-time basis, increase the 2026 Operating Budget for Environment, Climate and Forestry by $238,249 gross and $0 net, fully funded by a recovery from Toronto Water, to increase product availability within the 2026 pilot Program to Subsidize Rain Barrels for Collecting Stormwater on Private Property.

2. City Council amend the pilot Program to Subsidize Rain Barrels for Collecting Stormwater on Private Property adopted in IE24.11 to limit the number of rain barrels to one per eligible address and to keep the cost to residents consistent throughout the pilot.

As part of the 2026 Budget I included funding for a new program that offers residents the opportunity to purchase a rain barrel at extremely low cost. Rain barrels reduce stormwater runoff and reduce water consumption, particularly in the summer, and this program makes them affordable for homeowners. 

The program has proved extremely popular, with the initial allocation selling out in just 9 hours. Many inquiries have been received about the possibility of additional barrels, showing that there is additional demand from residents for an expansion. 

This is part of a suite of initiatives in the 2026 Budget that made life more affordable for homeowners by helping them with the cost of upgrading their homes to be more energy efficient and resilient. 

This motion recommends that we purchase another order of rain barrels to meet the demand from residents. It also recommends a change to the program to subsidize a maximum of one barrel per household instead of two to allow more residents to access the program. 

The Deputy City Manager, Development and Growth recommends that:

1. City Council endorse development of a new Toronto Public Library neighbourhood branch in the Quayside community hub and direct City staff to coordinate and advance the design and fit out of the library at the site, in coordination with Toronto Public Library, Waterfront Toronto, Housing Development Office, Corporate Real Estate Management, Development Review, and Waterfront Secretariat.

2. City Council direct that Section 37 community benefits obtained in the development at 31 Parliament Street in the amount of $4,000,000 (Source Account: XR3026-3701366), be committed to support the future fit-out of the Toronto Public Library branch in the Quayside community, subject to the necessary requirements being met for issuance of a building permit for Phase 1 Block 1C2 and 1C3 that includes the Toronto Public Library - Quayside Community.

3. City Council authorize the Director, Community Planning, Toronto and East York South District, in consultation with the Director, Waterfront Secretariat, to provide capital funding in the amount of $2,500,000 to the owner or a related corporation to allow for the construction, in part, of the base building condition of the Toronto Public Library - Quayside Community as part of the Quayside Development Project with $500,000 being directed from Section 37 community benefits obtained in the development at 31 Parliament Street (Source Account: XR3026-3701366); and $2,000,000 being directed from Section 37 community benefits obtained in the development at 141 Bay Street, Block 1 and the portion of the lands between Bay and Yonge Streets (Source Account: XR3026-3701201).

4. City Council direct that the funds referred to in Recommendation 3 be forwarded to the owner or a related corporation upon execution of an Amending Section 37 Agreement or other agreement, to the satisfaction of the City Solicitor, that governs the use of the funds and the financial reporting requirements; and no earlier than after issuance of the first above-grade building permit for Phase 1 Block 1C2 and Block 1C3.

5. City Council authorize the Executive Director, Corporate Real Estate Management or designate, in consultation with the Executive Director, Housing Development Office, to negotiate and enter into with the owner of Quayside Phase 1 Block 1A such crane swing agreements and related or ancillary agreements and any amendments thereto as may be required to facilitate development of the City’s lands and/or Quayside Phase 1 Block 1A on terms satisfactory to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Development Office, and in a form acceptable to the City Solicitor, and each of the Executive Director, Corporate Real Estate Management and the Executive Director, Housing Development Office or their designate(s) be authorized severally to execute such agreements on behalf of the City.

6. City Council authorize the Executive Director, Corporate Real Estate Management or designate, in consultation with the Executive Director, Housing Development Office, to negotiate and enter into with the owner(s) and/or tenants of Phase 1 Blocks 1B, 1C and 2 any conveyances, easements, leases, licences and other agreements (whether in the City’s capacity as transferee, transferor, lessee, lessor, licensee, licensor or otherwise, as the case may be) including without limitation tieback agreements, encroachment agreements, crane swing licences and construction staging licences, and any amendments thereto, that may be required in connection with the development of any lands within Blocks 1B, 1C and 2 or any part(s) thereof, on terms satisfactory to the Executive Director, Corporate Real Estate Management, in consultation with the Executive Director, Housing Development Office, and in a form acceptable to the City Solicitor, and each of the Executive Director, Corporate Real Estate Management and the Executive Director, Housing Development Office or designate(s) be authorized severally to execute such agreements on behalf of the City. 

7. City Council authorize the Executive Director, Corporate Real Estate Management or designate, in consultation with the Executive Director, Housing Development Office, Waterfront Secretariat and, where applicable, the Toronto Public Library, to negotiate and enter into with the owner(s) and/or tenants of Quayside Phase 1 Block 1B, 1C, and 2 or any part(s) thereof, such conveyances, easements, leases, licences and other agreements and any amendments thereto (whether in the City’s capacity as transferee, transferor, lessee, lessor, licensee, licensor or otherwise, as the case may be) as may be required for the construction and conveyance to the City of the proposed Toronto Public Library neighbourhood branch within the Quayside Phase 1 development, including without limitation tieback agreements, encroachment agreements, crane swing licences and construction staging licences, on terms satisfactory to the Executive Director, Corporate Real Estate Management, and in a form acceptable to the City Solicitor, and each of the Executive Director, Corporate Real Estate Management and the Executive Director, Housing Development Office or their designate(s) be authorized severally to execute such agreements on behalf of the City.

8. City Council, in accordance with Section 71-11.1C of the City of Toronto Municipal Code Chapter 71 (Financial Control), authorize the City Solicitor to amend the retainer with Borden Ladner Gervais LLP on Purchase Order Number 6057271 by increasing the value by $375,000 excluding all applicable taxes and charges ($381,600 net of HST recoveries), from $750,000 excluding all applicable taxes and charges ($763,200 net of HST recoveries) to $1,125,000 excluding all applicable taxes and charges ($1,144,800 net of HST recoveries).

The purpose of this report is to obtain various Council authorities to advance the first phase of the Quayside development in the waterfront, and to facilitate the delivery of a Toronto Public Library (“TPL”) branch in the central waterfront.

Quayside will be a master-planned, mixed-use complete community that builds on development in the adjacent East Bayfront lands and the emerging Keating Channel West Precinct. This 4.9-hectare area on Toronto’s waterfront, located at Queens Quay East and Parliament Street (“Quayside Lands”), will include new homes, parks and public spaces, community spaces and new and improved infrastructure, roads, and public realm.

Waterfront Toronto is leading the delivery of Quayside, in partnership with the City of Toronto Housing Development Office, Housing Secretariat, and Waterfront Secretariat. Waterfront Toronto’s development partners, Dream Unlimited (“Dream”) and Great Gulf Group (“Great Gulf”), are responsible for the delivery of purpose-built rental and condominium units, respectively, on Quayside development blocks.

The City, Waterfront Toronto, and Dream have worked on an accelerated plan to maximize the number of affordable and purpose-built rental homes that can be delivered in the first phase of development at Quayside, prioritizing the delivery of affordable and purpose-built rental homes on an expedited basis.

Along with the accelerated plan for affordable and purpose-built rental housing, the community hub space in the Quayside development presents an opportunity to house a new, approximately 1,850 square metre (20,000 square foot) TPL branch. With the accelerated delivery of affordable and purpose-built rental housing at Quayside, a library can be delivered with reduced timing. Further, it would enable the entire Phase 1 Block 1C development block to come into public ownership once the library facility is transferred to the City. This new branch has been approved by the Toronto Public Library Board (“TPLB”). The Toronto and East York Community Council (“TEYCC”) considered zoning and Section 37 amendments to enable the library facility in the first phase of Quayside development at a statutory public meeting on May 28, 2026 through item 2026.TE33.2 (the “TEYCC Report”). The recommendations in this report, together with the recommendations in the TEYCC Report, would enable the delivery of a new TPL branch and leverage developer construction obligations and Section 37 funds. The delivery of the TPL branch as the required community hub use in the Quayside development requires Council adoption of the recommendations in this report and the TEYCC Report, both of which are anticipated to be considered at the June 24, 2026 meeting of City Council.

The recommendations in this report provide the approvals required to secure a location in the Quayside development for a new, approximately 1,850 square metre TPL branch. Through amendments to the Development Agreement between Dream and Waterfront Toronto and through an amending Section 37 Agreement, the site developer will convey to the City the base building, land, and required easements for the library as part of the Quayside development. The City will provide capital funding of $2.5 million, fully funded by Section 37 community benefits from 31 Parliament Street and 141 Bay Street developments to support construction of the base building condition for the new library branch. Consideration for the reciprocal crane swing agreements can be satisfied through the mutual exchange of real estate interests, with no cash consideration required.

TPL will be responsible for the fit-out of the library space, and for the ongoing operations of the branch. The estimated cost to complete the fit-out is $13.0 million, with work expected to commence in 2029, or upon conveyance. Funding has been identified as follows:

- $4.0 million reallocation within TPL’s 10-Year Capital Plan, with no impact to planned State of Good Repair (“SOGR”) projects.

- $4.0 million in Section 37 community benefits received through the development at 31 Parliament Street agreement, to be added to the TPL’s 10-Year Capital Plan.

- $5.0 million donations to be received from the TPL Foundation in support of the fit-out of the new Quayside branch, to be added to the TPL’s 10-Year Capital Plan. TPL has worked with the TPL Foundation to seek and secure philanthropic contributions to support the fit-out of a new branch in the Quayside development. 

The creation of a new capital project, along with the associated project cost and funding for the fit-out of the TPL branch within the Quayside development will be brought forward for consideration through the 2027 budget process. This will allow sufficient time for TPL to complete the necessary due diligence to validate project cash flow timing. The creation of the project is subject to confirmation that the $13.0 million in funding required to complete the fit-out, as identified above, has been secured.

Operating budget impacts resulting from the addition of a new neighbourhood branch are estimated to be $1.5 million to $2.0 million annually. These financial impacts are not expected to commence until at least 2031, following completion of the fit-out work and as TPL plans to open the branch to the public. TPL will continue to monitor and refine this estimate and will bring forward the associated operating impacts for consideration through future budget processes.

The total value of amendment with the Borden Ladner Gervais LLP retainer on Purchase Order Number 6057271 is $375,000 excluding all applicable taxes and charges ($381,600 net of HST recoveries). This will increase the current purchase order from $750,000 excluding all applicable taxes and charges ($763,200 net of HST recoveries) to $1,125,000 excluding all applicable taxes and charges ($1,144,800 net of HST recoveries), for additional legal support related to the Quayside Development Project. Funding in the amount of $381,600 net of HST recoveries for this contract amendment is included in the 2026-2035 Capital Budget and Plan for the Housing Secretariat and the Housing Development Office under the capital project CAF003-03.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The City Manager recommends that:

1. City Council, as shareholder, treat the portion of the City Council meeting at which this report is considered as the Annual General Meeting of the Shareholder for Casa Loma Corporation (the "Corporation") and receive the Board-approved "Casa Loma Corporation 2025 Annual Report" and the "Casa Loma Corporation 2025 Audited Financial Statements" forming Attachments 1 and 2 to this report, respectively.

2. City Council, as shareholder, terminate the appointments of all members of the Board of Directors of the Corporation effective immediately and thank them for their service to the City of Toronto as board members.

3. City Council, as shareholder, resolve that the Corporation be voluntarily wound up under the provisions of Part XVI of the Business Corporations Act (Ontario); and that in connection therewith, City Council:

a. appoint the City Controller and Chief Accountant as the liquidator of the Corporation (the "Liquidator") to wind up the business and distribute the property of the Corporation;

b. authorize and direct the Liquidator to execute and file all required notices and documents, including the Notice Concerning Winding Up, with the Ministry of Public and Business Service Delivery (Service Ontario) to give effect to this resolution; and

c. approve the transfer of assets remaining after payments associated with the wind-up process from the Corporation to the City at current market value, to be solely applied to Casa Loma's future capital requirements.

4. City Council delegate authority to the General Manager, Economic Development and Culture, or their representative, to oversee and administer the interests of the City in Casa Loma and in particular the operating agreement with Liberty Entertainment Group.

5. City Council direct that all future proceeds from the lease agreement and operating agreement between the City of Toronto and Liberty Entertainment Group and related corporate entities for use of the Casa Loma property, net of operating costs, flow to Economic Development and Culture's Casa Loma Reserve Fund for future Casa Loma capital and other requirements to be allocated in future years through the City's budgeting process.

This report recommends that City Council, as sole shareholder of Casa Loma Corporation (the Corporation), receive the Corporation’s 2025 Annual Report and Audited Financial Statements and approve the voluntary wind-up and dissolution of the Corporation. Established in 2011 as an interim governance structure to stabilize operations, the Corporation has fulfilled its mandate. With long-term lease and operating agreements between the City and a third party for the use of Casa Loma in place, the Corporation is no longer required. Dissolution will enable the City of Toronto to assume direct oversight of Casa Loma through the Economic Development and Culture Division (EDC), improving administrative efficiency and aligning governance with current operational needs.

The report further recommends the appointment of the City Controller & Chief Accountant as Liquidator to undertake the Corporation's wind-up process, the transfer of all of the Corporation's assets and liabilities to the City, and the direction of net future lease revenues to the Casa Loma Reserve Fund within EDC to support ongoing capital and other requirements. The existing lease and operating agreements for the use of Casa Loma properties with Liberty Entertainment Group (LEG) will continue until January 2034. There are no net financial or operational impacts to the City anticipated because of the wind-up, and the transition is expected to be substantially completed in 2026, with continued public access and operations maintained throughout.

Once wind-up activities are complete, a subsequent report to Committee and Council will be required to report out on financials and complete the formal dissolution process, in accordance with the requirements of the Business Corporations Act (Ontario).

Annual Financial Statements

As of year-end 2025, the total financial assets of Casa Loma Corporation (the Corporation) were $4,602,569. These assets included $3,559,604 in cash, $1,000,000 in investments, $38,269 in interest received from the City of Toronto (City), $4,615 in interest receivable on bank deposits, and other receivables of $81.

For the year ended December 31, 2025, the Corporation's total financial liabilities amounted to $51,093. These liabilities consisted of accrued audit fees payable of $28,956 for 2024 and 2025, and government remittances payable to the Canada Revenue Agency of $22,137.

Wind-up and Dissolution of the Corporation

The wind-up of the Corporation and the subsequent transfer of its operations and assets to the City will be treated as a restructuring transaction in line with Public Sector Accounting Handbook guidelines. There will be no anticipated consolidated gain or loss. As part of the wind-up, any remaining Corporation financial assets and liabilities will be transferred to the City at their net book values.

The Corporation does not expect to incur any additional wind-up costs for the dissolution. If costs do need to be incurred, they will be funded through the Corporation's cash assets under the Liquidator's oversight before the dissolution.

Upon dissolution, the operations currently managed by the Corporation will be assumed directly by the City. The current agreements with Liberty Entertainment Group (LEG) and its related corporate entities provide for this arrangement. Accordingly, the existing lease and operating agreements will remain unchanged and in effect.

The Corporation has historically generated an operating surplus, which has contributed to the City's Casa Loma Capital Reserve Fund to support capital requirements. Following the Corporation's dissolution, rental income under the contracts with LEG will be recorded revenues of Economic Development and Culture Division (EDC). Property taxes and any other operating charges will be borne by EDC. EDC will continue to contribute to the Casa Loma Reserve fund in accordance with Casa Loma's operational requirements and capital needs. Any accumulated surplus from the operating revenues, net of the operating costs, from the Casa Loma lease and operating agreements will be allocated to the Casa Loma Reserves. These funds will be used exclusively to support future capital projects and other requirements related to Casa Loma's buildings and properties.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact information.

The Board of Directors of Toronto Hydro Corporation recommends that:

1. City Council treat the portion of the City Council meeting at which this report is considered as the annual meeting of the shareholder for Toronto Hydro Corporation (“Annual Meeting”).

2. City Council approve and adopt the shareholder resolution attached in Attachment 2 to this report to re-appoint the auditor of Toronto Hydro Corporation to hold office until the close of the next Annual Meeting and to authorize the directors of Toronto Hydro Corporation to fix the auditor’s remuneration.

3. City Council receive the following documents for information:

a. Attachment 1a - Toronto Hydro Corporation 2025 Annual Report Year in Review;

b. Attachment 1b - Toronto Hydro Corporation 2025 Sustainability Report;

c. Attachment 2 -  Resolution of the Shareholder Re-appointing Auditor;

d. Attachment 3 - Toronto Hydro Corporation 2025 Annual Report to the Shareholder;

d. Attachment 4 - Toronto Hydro Corporation Annual Information Form;

e. Attachment 5 - Toronto Hydro Corporation Chief Executive Officer and Chief Financial Officer Certification;

f. Attachment 6 - Executive Compensation Disclosure;

g. Confidential Attachment 7 - Toronto Hydro Corporation Non-Consolidated Financial Statements for years ending December 31, 2025 and 2024;

h. Confidential Attachment 8 - Financial Statements of Toronto Hydro-Electric System Limited for years ending December 31, 2025 and 2024;

i. Confidential Attachment 9 - Financial Statements of Toronto Hydro Energy Services Inc. for years ending December 31, 2025 and 2024;

j. Confidential Attachment 10 - Toronto Hydro Corporation Report for the three months ended March 31, 2026;

k. Attachment 11a - Statement of Remuneration and Expenses for Council Appointees; and

l. Attachment 11b - Toronto Hydro Corporation Statement of Board of Directors Remuneration and Expenses.

4. City Council direct that Attachments 7-10 remain confidential in their entirety due to the security of the property of the City and securities requirements arising from Toronto Hydro Corporation’s status as an offering corporation under the Business Corporations Act (“OBCA”), Toronto Hydro Corporation’s status as a reporting issuer under the Securities Act,  and the application by the Ontario Securities Commission of National Instrument 51-102.

5. City Council authorize and direct appropriate City officials to take the necessary action to give effect to City Council’s decision.

Annual Meeting: The Ontario Business Corporations Act requires the directors of Toronto Hydro Corporation to call an Annual Meeting by no later than 15 months after holding the preceding Annual Meeting. The last Annual Meeting was on June 25 – 26, 2025.

Auditor: The Ontario Business Corporations Act requires the shareholder to appoint the auditor and either fix the remuneration of the auditor or authorize the Toronto Hydro Corporation Board of Directors to do so.

Financial Documents: All attached financial documents are confidential and were approved by the Toronto Hydro Corporation Board of Directors. The Ontario Business Corporations Act and the Shareholder Direction[1] require Toronto Hydro Corporation to present the following to the shareholder at each Annual Meeting:

- The financial statements required to be filed under the Securities Act relating to (1) the period that began immediately after the end of the last completed financial year and ended not more than six months before the annual meeting and (2) the immediately preceding financial year;

- The report of the auditor to the shareholders; and

- Any further information respecting Toronto Hydro Corporation’s financial position and the results of its operations.

Toronto Hydro Corporation therefore submits and recommends that the attached documents be received and approved by City Council.

[1] The Shareholder Direction relating to Toronto Hydro Corporation, as amended and restated.

As directed by City Council at its meeting on May 20 and 21, 2026, enclosed is our report on Supporting Multiplex Housing.

The Chief Financial Officer and Treasurer recommends that:

1. City Council receive this report for information.

The purpose of this report is to provide the following information:

1.  Performance of the Funds for the year 2025

2.  General Market Update and Benchmark Performance

3.  City of Toronto Investment Policy and Procedures

The City's General Group of Funds (General Fund) hold the working capital and amounts designated for the City's reserves and reserve funds. The General Fund is comprised of two pools of investments: (a) the Short Term Fund (liquidity funds managed internally), and (b) the Long Term Fund (funds not immediately required managed by the Toronto Investment Board). The General Fund had a book return of 3.6 percent and generated $391.0 million for the year ending December 31, 2025.

The Short Term Fund, including the short-term investments of the Long Term Fund (LTF), was about 40 percent of the overall General Fund by December 2025 compared to 48 percent from the pre-pandemic level in 2019. This lower cash position was primarily due to an increased spending rate on capital projects. Staff will continue to monitor liquidity levels in 2026.

The City's Sinking Fund portfolio is separate from the General Fund and holds the investment funds for future debt repayments. For the year ending December 31, 2025, the Sinking Fund portfolio had a market return of 2.7 percent and generated approximately $85 million in total market return.

Since January 1, 2018, the City's long-term investments (Long Term Fund and Sinking Fund) have been managed by the Toronto Investment Board (Board) under a Council adopted Investment Policy which is based on the prudent investor standard. Investment portfolios of different asset classes have been progressively phased in to make use of the broader range of investments that have become available. Although, the potential for volatility in total returns over the short-term investment horizon still exist, the overall portfolio risk has been reduced through asset mix diversification. The overall risk-adjusted total returns over the long-term investment horizon are expected to be higher.

The Board currently provides oversight of four external fixed income managers, four external global equity managers and two real asset managers that invest the long-term investments. As at December 31, 2025, approximately 95 percent of both the Sinking Fund and the Long Term Fund were managed by external investment managers.  Both fixed income and equity investment asset classes are fully funded in accordance with the target asset mix in the Investment Policy with 70 percent allocated to fixed income and 20 percent to global equities. The Board completed contract negotiations with two real asset managers in the first half of 2024 with funding in the second half of the year. Adding real assets to the current investment portfolios will enhance the overall portfolios' risk-adjusted investment return and align with the Council approved policy target asset mix.

It is a legislative requirement that the Investment Policy be reviewed annually. Staff have reviewed the Investment Policy and no changes are recommended at this time given that policies have only been in place since 2018 and in that time we have experienced several years of volatility triggered by COVID-19 impacts. The City of Toronto Investment Policy can be reviewed in Attachment 1 of this report.

For the year 2024, all funds managed are compliant with the Investment Policy. The City's auditor, KPMG LLP, performed the Investment Policy compliance audit during the second half of 2025 and no issues were noted.

The Toronto Investment Board has contracted a third-party data provider in order to monitor and report on the high-level Environmental, Social, and Governance (ESG) attributes of the City's long-term investment portfolios on a quarterly basis. This investment fund-level ESG reporting process will complement the existing corporate-level ESG performance report. At the end of December 2025, the City's long-term investment portfolios overall score was "AA" and is within the "Leader" category of the selected market benchmark as depicted in the investment policy.  The Carbon Intensity Score for both the LTF and the SF are better than benchmark, with the trend in this indicator showing steady improvement over the years.

From an operating budget perspective, when recognizing only realized gains and losses, the General Fund earned $391.0 million and will be allocated between the eligible reserve funds and operating budget in accordance with the Council-approved interest allocation to reserve funds policy after the year end when all the required data becomes available.

The Sinking Fund portfolio had a market return of 2.7 per cent and generated approximately $85 million in total market return in the year 2025. These earnings are retained within the Sinking Fund and must be used for the purpose of retiring debenture debt at maturity.

The Chief Financial Officer and Treasurer recommends that:  

1. City Council approve the refinancing of the outstanding interest-only capital loan issued by the City to the Lakeshore Arena Corporation in the amount of $4,047,660, to address the repayment of both loan and principal, with a 17-year term commencing June 30, 2026, and authorize the Chief Financial Officer and Treasurer to enter into any necessary related agreements substantially on key terms and conditions as detailed in Appendix A to this report, all in a form satisfactory to the City Solicitor.

2. City Council approve the renewal of the following lines of credit guarantees:

a. the line of credit guarantee issued by the City on behalf of Canadian Stage in support of its lending arrangements, to its new lender, in the amount of $820,000 (inclusive of all interest payable by Canadian Stage), for a three-year period commencing on November 1, 2026 and ending October 31, 2029, substantially on the same terms and conditions as the current agreement; and

b. the line of credit guarantee issued by the City on behalf of Young People's Theatre to its lender in the amount of $175,000 (inclusive of all interest payable by Young People's Theatre) be renewed for a three-year period commencing on January 1, 2027 and ending December 31, 2029.

This report provides annual update reporting on the existing portfolio of City direct loans, capital loan and line of credit guarantees. The portfolio of loans included in this report is separate and apart from other internal City loan programs (e.g., Home Ownership Assistance Program, Sustainable Energy Plan Financing Program) which are covered under other City policies.

As at December 31, 2025, the City had authorized line of credit guarantees amounting to approximately $5.995 million, capital loan guarantees for underlying loans of $34.46 million, outstanding direct capital loan balances of $36.845 million, and one direct line of credit with a balance of $600,000.

This report also recommends the refinancing of an outstanding, interest-only capital loan of $4.048 million to Lakeshore Arena Corporation (LAC), which is currently set to expire in October 2026. The refinancing will allow for repayment of both principal and interest over a 17-year term, commencing June 30, 2026, with the first payment due on September 30, 2026, which is consistent with the repayment timeline of the existing LAC capital loan from Infrastructure Ontario.

Finally, this report recommends the three-year renewal of an existing line of credit guarantees of $175,000 in support of Young People's Theatre.  This report also recommends continued support for Canadian Stage in the form of a letter of credit guarantee for its $820,000 line of credit, which considers its anticipated new lending arrangements with BMO, for a three-year period commencing on November 1, 2026.

While there are no immediate costs to the City of providing either loans or loan guarantees, there are financial risks inherent in loans and loan guarantees, both of which are financial commitments made by the City to eligible entities. Depending on the magnitude, either may have potential impacts on the City's credit rating, as well as the City's own borrowing capacity.

For loans, there is a potential risk of non-repayment by the borrower, in which case the City would absorb the loss of any outstanding loan amounts.

For loan guarantees, there is also a potential risk of non-repayment.  Should an entity default on its debt obligations that are supported by a City loan guarantee, the City would be required to pay all, or a portion of the loan guarantee amount to the third-party lender. In this event, the City would be required to find funds to meet the payment obligations.

Should the City be required to pay out loan guarantee amounts, the City would seek to recover those funds from the supported entity.  However, as the entity would have already demonstrated an inability to meet its loan repayment obligations, it may be difficult for the City to recover its funds from that entity in the form of a loan. 

Therefore, in order to mitigate the City's risk of not being able to recover paid loan guarantee amounts, City policy requires eligible entities to have an "Existing Financial Relationship" with the City, which would allow the City to exercise some control over the entity's finances. Existing Financial Relationship means that the City already provides monetary grants or other discretionary financial contributions to the entity, or that the City has a level of control over the entity's budget. 

As at December 31, 2025, the City had authorized line of credit guarantees amounting to approximately $5.995 million, provided capital loan guarantees of $34.46 million, had outstanding direct capital loans of $36.845 million, and provided a direct line of credit (granted on an exceptional basis) of $600,000 as are identified below.

 Table 1: City Loans and Loan Guarantees as at December 31, 2025 

*underlying loan balance in the case of Loan guarantees.  Note that loan guarantees may sometimes be for only a portion of the underlying loan amounts, and not the total loan amounts

An outstanding interest-only City loan in the amount of $4,047,660 to the Lakeshore Arena Corporation (LAC), set to expire in October of 2026, is being recommended for refinancing to allow for repayment of both principal and interest over a 17-year term, commencing June 30, 2026, which is consistent with the repayment timeline of the LAC existing capital loan from Infrastructure Ontario.

The Chief Financial Officer and Treasurer recommends that:

1. City Council adopt the report (June 2, 2026) from the Chief Financial Officer and Treasurer as required under Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure.

2. City Council adopt the Corporate Asset Management Policy set out in Attachment 1 and City Council delegate authority to the Chief Financial Officer and Treasurer to affect any further technical amendments to the policy as required.

On May 21, 2025 City Council adopted report EX23.7 - City of Toronto’s 2025 Corporate Asset Management Plan for all municipal infrastructure assets in accordance with Ontario Regulation 588/17: Asset Management Planning for Municipal Infrastructure (the "Regulation") under the Infrastructure for Jobs and Prosperity Act.

The 2025 Corporate Asset Management Plan (AMP) encompassed 26 City Divisions, Agencies, and Corporations (DACs) that hold ownership and/or responsibility over City-owned municipal infrastructure assets, as defined by the Regulation. Organized into 9 service areas and 26 subservices, the AMP exhibited the multitude of services provided by the City, demonstrating the relationship between service delivery and the assets that support those services. The 2025 Corporate AMP represents the final milestone of O. Reg. 588/17.

In accordance with the Regulation’s ongoing accountability requirements for Ontario municipalities, the City must undertake an annual review of its asset management (AM) program and report on progress to Council on or before July 1 of each year. This report constitutes the City’s first annual AM progress update to Council, addressing the following areas, as required:

a. the municipality’s progress in implementing its asset management plan;

b. any factors impeding the municipality’s ability to implement its asset management plan; and

c. a strategy to address the factors described in clause (b).

Overall, the City has made significant progress in its AM program, including establishing a CAM strategy and roadmap; completing its first AM readiness assessment and data collection exercise; strengthening integration with the City’s budget process; developing internal AM dashboards to support evidence-based decision-making; and establishing a dedicated AM network across agencies, boards, and corporations.

In conjunction with the continued development of the City’s AM program, an internal review of the 2019 Corporate Asset Management Policy was undertaken. This review resulted in technical amendments to reflect the formal establishment of the Corporate Asset Management (CAM) function and updates to associated definitions, roles and responsibilities. It is recommended that City Council approve these technical changes and delegate authority to allow for future non-substantive amendments to the policy, as required, to support ongoing program refinement and compliance.

Adoption of this report does not result in immediate financial implications. However, ongoing compliance with the legislative requirements will result in the need for identification of resources and functions corporately to establish an organization-wide practice of integrated asset management (AM) in support of a whole-of-government approach to AM that will promote consistency and standardization of AM practices across the City.

As identified in the 2025 Corporate Asset Management Plan (AMP), the City of Toronto maintains approximately $215 billion in assets. The 2026-2035 Capital Plan invests roughly $33 billion in state-of-good repair (SOGR) to support maintenance needs. Further improvement initiatives identified in the 2025 Corporate AMP and formalized in the Corporate Asset Management (CAM) roadmap will be integrated into the City’s annual budget process and capital prioritization framework as recommended through the Updated Long-Term Financial Plan. This will enhance existing prioritization processes and be used to make data-driven, evidence-based decisions regarding the 10-Year Capital Plan to balance service value optimization, risk mitigation and cost reduction. It will also allow Council to set strategic direction in the allocation of available capital funds using a consistent set of guiding principles, while considering overall affordability and capacity to deliver capital investments.

The Chief Procurement Officer recommends that:

1. Executive Committee receive this report for information.

This report provides an overview of Fair Wage Office activities in 2025. Pursuant to Municipal Code Chapter 67, Fair Wage, the Manager, Fair Wage Office, is required to report annually on the administration and enforcement of the Fair Wage Policy, including the identification of contractors and sub-contractors that have violated the Fair Wage Policy or settled Labour Trades Contractual Obligations in the Construction Industry Policy grievances, and any other necessary information. The annual report is transmitted to the appropriate standing committee by the Chief Procurement Officer.

There is no financial impact resulting from the adoption of the recommendation in this report.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information presented in the Financial Impact Statement.

The Chief of Staff, City Manager's Office recommends that:  

1. Executive Committee receive this report for information.

The purpose of this report is to provide a summary of the City’s donation activity in 2025 as outlined in the annual reporting requirements of the City of Toronto Donation Policy. 

For the 2025 fiscal year, 6,450 donations for which tax receipts were issued were received, with a total value of $1.08 million. Donations were made by both individuals and organizations. While most donations came from individuals and organizations that live or operate within the City, donations were also received from other parts of the province and country, and from the United States of America.

This summary includes both cash and in-kind donations and only includes donations for which tax receipts were issued by the City. This summary does not include donations under $20, gifts from foundations which do not qualify for a tax receipt, or in-kind donations where a tax receipt is not requested by the donor. Agencies and corporations that issue their own tax receipts are also not included in this summary.

In accordance with the Financial Control By-law, Toronto Municipal Code Chapter 71-19, donations exceeding $50,000 may be accepted and spent with the appropriate authority and reported to Council through the Executive Committee.

For the 2025 fiscal year, donated funds have been made available to City Divisions and Agencies for designated programs and initiatives. Where donations exceed $50,000 and are used to enhance a program or initiative, an in-year budget adjustment is made to increase both gross expenditures and donated revenues. In some cases, donated funds may be deferred for future use.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the information as presented in the Financial Impact Section.

The City Manager recommends that:  

1. The Executive Committee receive this report for information.

This report responds to City Council direction 2025.MM34.7 to report on opportunities to expand the Listening to Toronto survey to support ward-level insights.

Staff were also directed to assess potential sampling frameworks, methodological and promotional options to improve demographic and geographic representation, and comparable municipal survey models.

In response, staff conducted a jurisdictional scan of municipal survey models, engaged divisions on survey expansion opportunities, and assessed the feasibility of expanding the current survey’s scope, including approaches to enhance demographic and geographic representation, strengthen public outreach strategies, and understand associated costs.

The purpose of this report is to summarize the results of this analysis.

There are no current or known future year financial implications resulting from the adoption of the recommendation contained in this report.

The Listening to Toronto survey is currently delivered within an annual budget of approximately $50,000, with external vendor costs at just under this amount, excluding internal staff costs.

The report identifies that expanding the survey to support ward-level analysis or enhancing methodological approaches would result in additional costs.

Should Council choose to pursue any of the expansion approaches outlined in this report, any required funding would be requested through a future budget submission for Council consideration.

The Chief Financial Officer and Treasurer has reviewed this report and agrees with the financial impact statement.

The Housing Rights Advisory Committee recommends that:

1. City Council to reaffirm its commitment to the progressive realization of the right to adequate housing when considering strengthening governance oversight for future mega or large-scale events, as directed in Item AU9.9 – FIFA World Cup 2026 – Toronto, Governance Lessons Learned for Bidding and Planning to Host Future Events, and as established in PH11.5 – Housing TO 2020-2030 Action Plan, by ensuring any guidelines or policies developed include:

a. consideration of impacts on people experiencing homelessness, especially those experiencing unsheltered homelessness;

b. specifications for establishing a plan to minimize displacement and support people experiencing unsheltered homelessness to access shelter or housing in alignment with the City’s Interdivisional Protocol on Encampments; and

c. undertaking a FIFA 2026 audit of the impact of the mega event on the human rights of residents of Toronto particularly those who are experiencing homelessness, up to a one-year period post-event.

At its meeting on May 29, 2026, the Housing Rights Advisory Committee considered Item HS11.5 and made recommendations to City Council.

Summary from the Housing Rights Advisory Committee:

When people sleeping outdoors are removed or displaced, they are disconnected from their support networks, caseworkers, access to vital services, and face increased safety risks, including overdose for those who use drugs. It is a deeply traumatizing and destabilizing experience and is, in part, why Council rightfully adopted the Interdivisional Protocol on Encampments (IDP).

As a Council Advisory Body mandated to provide advice to City Council on how it can uphold its Toronto Housing Charter commitment to progressively realize the right to adequate housing, it is important that we understand how the City is monitoring its compliance with the Toronto Housing Charter and IDP when it hosts large scale events, such as the upcoming 2026 FIFA World Cup.

Before entering into agreements for these events, the City should adopt trauma-informed, human rights-based guidelines to respond to and support people who are experiencing homelessness and residing in public spaces. These guidelines must be coordinated and consistently applied by City staff to ensure human rights are respected and upheld.

Hosting large scale international events is ultimately an opportunity to demonstrate how governments can uphold and respect the human rights of its residents, including the progressive realization of the right to adequate housing.

Councillor Paul Ainslie recommends that:

1.  City Council receive the 2026 Good Roads Conference March 29 – April 1, 2026 update for information.

I am pleased to provide an update following my participation in the Good Roads 2026 Conference, a key annual forum that brings together municipal leaders, infrastructure experts, and industry partners from across Ontario.

The Good Roads Conference continues to serve as one of the most significant gatherings focused on municipal transportation and infrastructure. It offers a valuable opportunity to exchange knowledge, discuss policy priorities, and collaborate on solutions to common challenges facing municipalities.

This year’s sessions reinforced the importance of:

- Sustained infrastructure investment to support growing communities
- Advancing state of good repair and asset management practices
- Strengthening road safety and climate resilience strategies
- Leveraging innovation and emerging technologies in municipal operations
 

Participation in these discussions ensures that Toronto remains aligned with best practices and continues to lead in building safe, efficient, and sustainable transportation systems.

The 2026 conference featured a strong program of:

- Educational sessions and panel discussions on infrastructure funding, maintenance, and innovation
- Keynote presentations addressing the future of municipal transportation
- An extensive exhibitor showcase highlighting the latest equipment, technologies, and services available to municipalities
 

I am honoured to share that during the conference; I was named President of the Good Roads Association. I look forward to serving in this role and working collaboratively with municipal partners across Ontario to:

- Advocate for sustainable and predictable infrastructure funding
- Support municipalities in addressing their transportation and asset management priorities
- Strengthen the collective voice of municipalities on key issues impacting our communities
 

This role presents an important opportunity to ensure that Toronto’s perspectives and priorities contribute to shaping infrastructure policy and advocacy efforts across the province.

I would like to express my sincere gratitude to the outgoing President, Mayor Cheryl Fort of the Township of Hornepayne for her leadership, dedication and significant strides she made for the association.

The Good Roads 2026 Conference reaffirmed the importance of collaboration, innovation, and strategic investment in maintaining and enhancing our transportation networks. I look forward to continuing this work both locally and provincially in my new capacity.

The 2027 Good Roads Conference will be held on April 4-7 Conference - Good Roads.

Councillor Paul Ainslie recommends that: 

1. City Council receive the 2026 Sociable City Summit and Academy April 12-15, 2026 update for information.

I am writing to provide an update on my participation in the 2026 Sociable City Summit and Academy, held from April 12–15, 2026.

As Toronto’s Night Economy Champion, I attended the Summit and Academy to engage with municipal leaders, industry experts, and practitioners from around the world on emerging trends and best practices in fostering vibrant, inclusive, and well-managed nighttime economies.

In my role, I have worked with Council, City staff, and community stakeholders to strengthen and modernize Toronto’s night economy. This work builds on the City’s Nightlife Action Plan, which advances a coordinated approach to planning the night, supporting creative and cultural industries, and promoting safe and inclusive nighttime activity.

Over the past several years, Toronto has made meaningful progress. We undertook a comprehensive Night Economy Review, engaging more than 3,000 stakeholders, which resulted in modernized licensing and zoning regulations to better reflect contemporary nightlife and entertainment models, including expanded opportunities for venues and more flexible licensing frameworks.

We have also strengthened ongoing collaboration and accountability through the External Night Economy Working Group, which I chair, bringing together representatives from business, arts and culture, and community organizations to inform policy and address emerging issues. In addition, the City has introduced practical supports such as the Good Neighbour Guide for Late-Night Businesses and convenes an annual Night Economy Town Hall to share updates and gather feedback from sector participants.

Looking ahead, Toronto is advancing key initiatives, including Night Lab stakeholder workshops, a 2026 Economic Impact Study to better quantify the sector’s contribution, and targeted, place-based work such as the King West Community Night Safety Plan to improve safety, coordination, and the public realm in high-activity areas.

At the Sociable City Summit and Academy, I participated in sessions exploring nighttime economy strategy development, regulatory approaches to hybrid venues, sound management, and the importance of cultural stewardship and community belonging in nightlife. Discussions also highlighted global trends across major cities and reinforced the importance of governance structures, safety initiatives, and collaboration in supporting thriving night economies.

The knowledge and connections gained through this experience will help inform Toronto’s ongoing efforts to support businesses and workers, enhance safety, and ensure our night economy continues to contribute to the city’s cultural vibrancy and economic growth.

I look forward to continuing this work in partnership with Council, City staff, and stakeholders across Toronto.

Councillor Paul Ainslie recommends that:

1. City Council receive the Great Lakes and St. Lawrence Cities Initiative's 2026 Annual Conference, May 6-8, update for information.

I am writing to provide an update on my participation at the Great Lakes and St. Lawrence Cities Initiative’s 2026 Annual Conference, held from May 6 to 8, 2026. Acting on behalf of Mayor Chow, I attended the conference to represent the City of Toronto, ensuring our continued leadership and engagement with municipal partners across the Great Lakes and St. Lawrence region.

Toronto was actively represented at this important gathering of municipal leaders. The conference provided a vital forum for mayors and city leaders to collaborate on shared priorities including economic resilience, trade, infrastructure investment, and the long-term competitiveness of our interconnected regional economy.

The Great Lakes and St. Lawrence region represents one of the most significant economic areas globally, generating approximately $9.3 trillion USD in annual economic output and accounting for nearly 30 percent of all economic activity in Canada and the United States.

Given Toronto’s role as a major economic hub and trade gateway, participation in this forum is critical. Discussions at the conference focused on addressing current economic challenges, including trade disruptions, shifting supply chains, tariff pressures, and rising infrastructure costs affecting municipalities across the region.

A key outcome of the conference was the advancement and adoption of positions through the Mayors Commission on Economic Transformation (MCET), which brought together municipal leaders to advocate for coordinated action to strengthen regional economies and address trade-related challenges.

A motion reflecting these priorities was adopted through the Cities Initiative at its Board Meeting during the conference subsequently adopted by Toronto City Council at the May 20, 2026, meeting, Agenda Item History - 2026.MM41.9. This motion aligns Toronto’s advocacy with regional partners and reinforces the outcomes of the Cities Initiative conference.

Ahead of the conference, Toronto hosted a Mayors meeting on May 5, convened by Mayor Chow. This meeting strengthened collaboration and set the stage for discussions at the conference, particularly around economic transformation, trade resilience, and regional cooperation.

Toronto’s leadership was highlighted throughout the conference, particularly in areas such as waterfront revitalization, economic development, and infrastructure investment. Major initiatives like the Port Lands transformation demonstrate how cities can integrate housing growth, climate resilience, and economic prosperity.

The 2026 Annual Conference underscored the importance of strong municipal collaboration in addressing complex economic and trade challenges. Through my attendance on behalf of Mayor Chow, and through City Council’s adoption of the CUSMA motion, Toronto continues to play a leading role in advancing policies that support economic stability and growth across the region.

Councillor Chris Moise recommends that:

1. Executive Committee request the City Manager, in consultation with the City Solicitor and Executive Director of the 519 Church Street Community Centre, as required, to submit a report on the following program to the July 21, 2026 meeting of the Executive Committee:

a. A mandate for staff of the 519 Church Street Community Centre to provide direct legal advice to clients who identify as members of the 2SLGBTQ community and do not qualify for other pro bono legal services or who face barriers to accessing legal services due to an identified service gap;

b. A strategy to mitigate liability, risk, and any other appropriate accountability measures to the 519 Church Street Community Centre, City and its employees when 519 Church Street Community Centre staff provide direct legal advice to clients;

c. Financial implications of expanding their mandate to include a program which provides legal services directly to members of the public free of charge; and

d. Potential conflicts of interest in such a program.

The 519 Church Street Community Centre has received a three-year grant from the Law Foundation of Ontario to expand legal support services for 2SLGBTQ+ individuals who are unable to access legal aid, with a particular focus on trans women, gender-based violence survivors, newcomers and refugees. The proposed model would allow staff at The 519 to provide legal education and limited, direct legal advice to clients who fall outside the reach of existing legal aid programs, pro bono services, and community legal clinics.

The 519 currently operates a program where 519 staff refer clients to approximately 50 independent volunteer pro bono lawyers covering six to eight areas of law; however, 519 staff do not currently provide direct legal advice. The proposed program addresses identified gaps in family and immigration law services — areas in which The 519's staff have significant experience and in which complex cases, such as humanitarian and compassionate claims, are routinely ineligible for legal aid.

City of Toronto staff have determined that expanding The 519's functions to include direct legal advice constitutes a mandate expansion beyond the traditional scope of Association of Community Centres under the Municipal Code and Association of Community Centres Relationship Framework.

Discussions between The 519 and City staff began in December 2025. Given the urgency of client needs and evolving federal policy, this letter seeks to advance the necessary report for consideration at the July 2026 meeting of City Council, in order to enable The 519 to proceed with this time-sensitive and community-critical program.