2023 Annual Report

Message from the Deputy Director of Finance

Both legislation and the City’s investment policy emphasize the safety of City investments and the risk of the remeasurement loss being realized is considered remote. Disclosure related to this standard is provided in Note 3 to the Financial Statements. 4. Consolidated Statement of Change in Net Financial Assets – Page 49 This statement begins with the annual surplus, shown on the Statement of Operations and adjusts for items, such as amortization and expenditures on tangible capital assets to derive the excess or deficiency of revenues over expenditures, which equals the change in financial position. The City’s net financial assets increased by $20.6 million to $144.26 million at the end of 2023. Had the activities in the Financial Plan been completed as planned, financial assets would have decreased by $123.4 million, resulting in a reduction in net financial assets to $307 thousand. Timing differences between planned and actual capital expenditures are the main reason for this variance. 5. Consolidated Statement of Cash Flow – Page 50 This statement represents financial resources that are available in the short-term to satisfy debt obligations and expenditures. The change in cash and cash equivalents is linked to, but is not identical to, the change in financial position, which is explained by the excess of revenues over expenditures. For example, when cash is received for a refundable deposit, cash is increased, but revenue is not.

Consolidated Revenue Compared to budget (2023)

As in previous years, there were variances between budgeted and actual revenues ($20 million) and, as in previous years, a large part of this difference was related to the capital program. Development fees (earned DCCs) and senior government transfers were budgeted based on the expected completion of capital projects. As the capital expenditures did not occur there was no corresponding revenue recognized. In 2023, this contributed to an unfavorable variance to budget of $ 45.6 million. On the operating side, revenues exceeded budget estimates by $25.5 million through a combination of favourable results from user fees, grants, and investment income. Consolidated Expenses Compared to previous year (2022) Consolidated expenses are comprised of operating expenses for goods and services, labour, and debt servicing as well as the annual cost of using our tangible capital assets through amortization. Overall expenses for 2022 increased by $14.7 million over 2022. This was comprised of increases in most reporting segments with overall increases of $6.5 million for goods and services, $6.8 million for labour and $1.5 million for amortization of the City’s tangible capital assets. Consolidated expenses for 2023 reflect a positive variance of $13.3 million compared to budget. Contributors to this positive variance include RCMP contract savings of approximately $2.6 million, approximately $8 million for projects that will proceed in 2024 and $2.4 million in labour costs due in part to vacancies throughout the organization and ongoing recruitment challenges. Consolidated Exenses Compared to budget (2023) 3. Consolidated Statement of Remeasurement Gains and Losses – Page 48 This is a new statement to the City’s Consolidated Financial Statements, introduced as a result of adopting accounting standard PS3450 – Financial Instruments. The statement reports the difference between cost and market value for portfolio investments where returns are linked to the performance of other indices. The City holds nine portfolio investments that meet this criterion and as at December 31, 2023, the market value of these holdings was $1.3 million less than cost and has been recorded as a remeasurement loss.

Overall, the City’s cash position at the end of 2023 increased to $61 million from $22.9 million in 2022.

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38 | City of Maple Ridge - 2023 Annual Report