As I've stated before I think that PRIDE type of stuff made sense in the 80s and 90s. While there is no question about the rights that all people (homosexuals or not) should enjoy, I find that the gay parade is rather decadent, tacky, and out of touch. If I was the mayor of New Orleans I wouldn't show up for Mardi Gras, and if I was the mayor of Toronto I wouldn't show up for Pride.
That said, I would keep in touch with the homosexual community in one way or another, and I would make sure they don't feel alienated by City Hall. There's no reason why gay people living in Toronto should feel judged by their own city, and I'd imagine a lot of them are feeling exactly that right now. It's plain rude and inappropriate if anything.