This report was prepared in collaboration with our consultant David Poole that reviewed and surveyed a variety of municipal arts councils in Ontario and specifically investigated those arts councils who deliver municipal granting programs. Additional research was undertaken about arts councils in larger cities outside of Ontario (Edmonton, Winnipeg, and Toronto), all of whom had varying models of delivering arts and culture services to their communities. This in-depth report reviewed the theoretical history of arms-length models in Western governments and the foundational principles of peer assessment. This report is crucial to our endeavour to transition management and delivery of the community investment and project grants program away from City Hall to EC3 so that it can be administered by experienced arts professionals using peer assessment. This has been an objective of the arts community for more than twenty years. The establishment of EC3 makes it a viable option for ensuring that public finding to arts organizations is administered in an equitable, transparent, effective, and efficient manner.