Report: Business Board - January 28, 2026

REPORT NUMBER 288 OF THE BUSINESS BOARD

Wednesday, JANUARY 28, 2026

To the Governing Council,
University of Toronto,

Your Business Board reports that it held a meeting held in the Council Chamber, Simcoe Hall, on January 28, 2026, at 5:00 p.m. with the following members present:

PRESENT: Rajiv Mathur (Chair), Indi Gopinathan (Vice-Chair), Scott Mabury (Vice-President, Operations & Real Estate Partnerships), Kelly Hannah-Moffat (Vice-President, People Strategic, Equity & Culture), Jeff Lennon (Interim Chief Financial Officer), Amanda Bartley*, Janet Cloud, Samuel Elfassy, Samantha Figenshaw, Thomas Hofmann, Paul Huyer*, David Jacobs*, Sarosh Jamal, Samantha Kappagoda*, Audrey Karlinsky, Scott MacKendrick*, Adel Melek, Debbie Oakley, Nicole Martin, David Regan, Danielle Skipp

REGRETS: Kevin Li, Maureen Harquail, Rishi Shah, Rima Ramchandani, Paul Tenenbein, Geeta Yadav

NON-VOTING ASSESSORS: David Palmer* (Vice-President, Advancement), Christine Szustaczek (Vice-President, Communications), Susan McCahan (Associate Vice-President and Vice-Provost, Digital Strategies and Vice-Provost, Innovations in Undergraduate Education), Anne MacDonald (Assistant Vice-President, Spaces & Experiences), Mike Snowdon (Acting Assistant Vice-President, Planning and Budget), Nicholas Rule (Vice-Provost, Academic Programs)

SECRETARIAT: Timothy Harlick (Secretary), Amanda Grant

IN ATTENDANCE: Elizabeth Cragg (Director, Office of the Vice-President, Operations & Real Estate Partnerships), Janice Johnson (Executive Director, Student Housing & Residence Experience), Flavio Bertolo (Director, Infrastructure Planning & Implementation), Nagib Wassef (Executive Director, Capital Projects), Sanish Samuel (Controller and Executive Director, Financial Services), Anthony Tia (Executive Director, Treasury & Investment Services), Sarah MacWhirter (Issues & Media Relations Strategist)

*joined remotely

Pursuant to section 38 of By-Law Number 2,
consideration of items 16 to 18 took place in camera.

OPEN SESSION

1. Chair’s Remarks
   
   The Chair called the meeting to order and welcomed members and guests to the first meeting of the new year. He reminded members that the meeting time had been extended by 30 minutes to accommodate an in camera presentation regarding the Build More Housing initiative.
2. Reports of the Administrative Assessors
   
   There were no reports from the Administrative Assessors.

3. Annual Report: Deferred Maintenance
   
   The Board received the Annual Report on Deferred Maintenance for 2025, for information.
   
   Professor Scott Mabury, Vice-President, Operations & Real Estate Partnerships, introduced the item by highlighting the structural funding challenges facing the University. He noted that despite the University’s robust capital program, provincial funding for deferred maintenance remains inadequate compared to peer institutions in other provinces. He cited McGill University receiving approximately $150 million annually for a smaller campus, compared to the University of Toronto’s significantly lower allocation. Professor Mabury credited the Facilities & Services team for maintaining the St. George campus in excellent visual and operational condition despite these constraints. He also referenced the "Project RISE" initiative, a strategic decision to utilize debt to address critical deferred maintenance needs over the next three years.
   
   Mr. Ron Saporta, Chief Operating Officer, Property Services & Sustainability, presented the report and highlighted the following key points:

• Deferred maintenance was fundamentally defined as deferred capital renewal rather than routine operational maintenance.

• The replacement value of academic and administrative buildings had grown to $7.4 billion, with a total liability of $1.5 billion and a stable Facility Condition Index of 20.2 percent.
• The St. George campus held the majority of the liability at $1.3 billion, with a liability per square meter significantly higher than the provincial average.
• Project RISE would invest $300 million across 68 buildings, utilizing a multi-factor risk model to target critical systems such as elevators and electrical infrastructure.
• Long-term projections indicated that while the current investment stabilized the liability, significant increases were expected in the coming decade as buildings from previous expansion eras reached critical renewal periods.

Discussion

In response to questions regarding the experts cited in the report, Mr. Saporta explained that the University engaged third-party auditors consistent with Council of Ontario Universities standards, while internal engineering teams applied risk scores to prioritize projects based on institutional impact.

In response to a question on the presence of safety considerations, Mr. Saporta clarified that safety issues were never deferred but were addressed immediately through a separate contingency fund, using audit data to predict and mitigate failures before they became safety hazards.

Members discussed the effectiveness of government advocacy, with Professor Mabury outlining a new partnership strategy that offered joint real estate solutions rather than traditional funding requests. He described a potential collaboration where the University could assist with the government’s need for swing space during the renovation of the Legislative Assembly, noting that combining distinct assets and adjacent land holdings created a value proposition greater than the sum of its parts.

4. Debt Strategy Annual Review: 2025
   
   The Board received the Debt Strategy Annual Review: 2025, for information.
   
   Mr. Jeff Lennon, Interim Chief Financial Officer, introduced the item by emphasizing the prudent approach the University takes regarding debt management. He noted that affordability is reassessed with every capital project to ensure financial stability.
   
   Mr. Anthony Tia, Executive Director, Treasury and Investment Services, presented the annual review and highlighted the following key metrics and forecasts:
   • Total debt allocations to date were approximately $2 billion, with $1.2 billion issued for completed projects and the remainder assigned to active developments.
   • The debt burden ratio was reported at 2.4 percent, which remained significantly below the policy ceiling of 6 percent.
   • The viability ratio sat at 5.6 times, well exceeding the minimum policy requirement of 0.8 times.
   • Projections indicated sufficient debt capacity to support the anticipated $4.4 billion capital plan over the next five years while maintaining compliance with all financial policies.

Discussion

In response to questions regarding the issuance of external debentures to lock in fixed rates, Mr. Tia advised that internal borrowing currently offered a lower cost of capital, though the bond market remained an option for significant future projects.

Regarding interest rate volatility, the Mr. Tia also confirmed that the financial model utilized a conservative borrowing cost of 5.5 percent, with stress tests demonstrating that the University would remain within policy limits even if rates increased.

Mr. Tia concluded by noting that credit rating agencies had recently reviewed the University’s long-term outlook and reaffirmed its strong credit standing.

5. Forecast of University Financial Results at April 30, 2026, prepared as of January 14, 2026
   
   The Board received the Forecast of University Financial Results, for information.
   
   Mr. Lennon presented the forecast, projecting a net income of approximately $170 million, consistent with the original budget plan. He noted that enrolment-related revenues were down by approximately $70 million, primarily due to international enrolment shifts. However, this shortfall was offset by stronger-than-planned investment income.
   
   Mr. Lennon highlighted that the University is conservative in its forecasting, assuming a 7% return for the Long-Term Capital Appreciation Pool (LTCAP), though year-to-date performance was higher. He signaled that the budget environment is tightening, with expenses growing faster than revenues, a trend that will be discussed further during the upcoming budget cycle.

CONSENT AGENDA

On motion duly moved, seconded, and carried

YOUR BOARD APPROVED

THAT the consent agenda be adopted and that Items 6(a), 6(b), 6(c), 7, and 11 be approved.

6. Health and Safety Policy Updates:

   1. Review of the University of Toronto Health and Safety Policy
      
      On motion duly moved, seconded, and carried
      
      YOUR BOARD APPROVED
      
      THAT the amendments to the University of Toronto Health and Safety Policy be approved, effective January 28, 2026.
       

   2. Review of the University of Toronto Policy with Respect to Workplace Violence
      
      On motion duly moved, seconded, and carried
      
      YOUR BOARD APPROVED
      
      THAT the amendments to the University of Toronto Policy with Respect to Workplace Violence be approved, effective January 28, 2026.
       
   3. Review of the University of Toronto Policy with Respect to Workplace Harassment
      
      On motion duly moved, seconded, and carried
      
      YOUR BOARD APPROVED
      
      THAT the amendments to the University of Toronto Policy with Respect to Workplace Harassment be approved, effective January 28, 2026.
7. Revision to the Procurement Policy
   
   On motion duly moved, seconded, and carried
   
   YOUR BOARD APPROVED
   
   THAT revisions to the Procurement Policy dated January 28, 2026, be approved, replacing the Procurement Policy dated November 26, 2025.
8. Status Report on Debt to December 31, 2025
   
   The Status Report on Debt to December 31, 2025, was received for information.

9. Quarterly List of Donations for the period August 1 – October 31, 2025
   
   The Board received the Quarterly List of Donations for the period August 1 – October 31, 2025, for information.

10. Health and Safety Requirements: Quarterly Report on Compliance
    
    The Board received the Quarterly Report on Compliance for the period October 1 to December 31, 2025, for information.

11. Report of the Previous Meeting: Report Number 287, November 26, 2025
    
    Report Number 287 of the Business Board held on November 26, 2025, was approved.

12. Business Arising from the Report of the Previous Meeting
    
    There was no business arising from the Report of the previous meeting.

13. Report Number 166 of the Audit Committee, November 19, 2025
    
    Report number 166 of the Audit Committee, November 19, 2025, was received for information.

14. Date of Next Meeting – March 12, 2026, at 5:00 p.m.
    
    The Board was informed that the next meeting would be held on March 12, 2026, at 5:00 p.m.

15. Other Business
    
    There was no other business.

The Board moved in camera.

IN CAMERA SESSION

16. In Camera Reports of the Administrative Assessors
    
    Professor Kelly Hannah-Moffat, Vice-President, People Strategy, Equity & Culture, provided an update on ongoing collective bargaining.
17. Report on Capital Projects
    
    Professor Mabury and Mr. Nagib Wassef, Executive Director, Capital Projects, presented the Capital Projects Report for the period ending December 31, 2025. The report included a comprehensive list of capital projects under construction and in design.

18. Build More Housing Initiative
    
    The Board received a presentation on the Build More Housing Initiative.

    1. Recapitalization Strategy
       
       The Board approved a motion that the recommendation of the Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated January 21, 2026, be approved.
        

    2. Real Estate Partnership
       
       The Board approved a motion that the recommendation of the Vice-President, Operations and Real Estate Partnerships, as outlined in the memorandum dated January 21, 2026, be approved.

The Board returned to Open Session.

The meeting adjourned at 7:36 p.m.

January 30, 2026