2024 Annual Report-web FINAL

Message from the Deputy Director of Finance (continued)

Consolidated Revenue Compared to budget (2024)

3. Consolidated Statement of Remeasurement Gains and Losses – Page 50 This statement reports the difference between cost and market value for portfolio investments where returns are linked to the performance of other indices. When qualifying investments either mature or are sold by the City any realized gain or loss is reported on the Statement of Operations; for 2024 this resulted in reported remeasurement gains of $21.9 thousand. At December 31, 2024 the City held nine portfolio investments that met the criterion to be reported at market value. The market value of these holdings was $2.25 million less than cost and has been recorded as a remeasurement loss. 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. 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 $23.8 million to $168.07 million at the end of 2024. Had the activities in the Financial Plan been completed as planned, financial assets would have decreased by $150.27 million, resulting in a reduction in net financial assets to a net debt position of $6 million. Timing differences between planned and actual capital expenditures are the main reason for this variance. Continued > 4. Consolidated Statement of Change in Net Financial Assets – Page 51

As in previous years, there were variances between budgeted and actual revenues ($17.5 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. Where the related capital expenditures did not occur there was no corresponding revenue recognized. In 2024, this contributed to an unfavorable variance to budget of approximately $58.2 million. On the operating side, revenues exceeded budget estimates by $75.6 million through a combination of favourable results from user fees, partially the result of a one-time reclassification of $18.7 million of previously restricted revenues as a result of the adoption of PS3400 - Revenue, grants, and investment income. In addition, the fair value of assets contributed to the City as part of the development process exceeded financial plan estimates by $9.2 million. Consolidated Expenses Compared to previous year (2023) 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 2024 increased by $18.3 million over 2023. This was comprised of increases in most reporting segments with overall increases of $10.7 million for goods and services, $5.9 million for labour and $1.9 million for amortization of the City’s tangible capital assets. Consolidated Expenses Compared to budget (2024) Consolidated expenses for 2024 reflect a positive variance of $9.3 million compared to budget. Contributors to this positive variance include RCMP contract savings of approximately $1 million, approximately $13 million for good and services with approximately $10 million of that related to projects that will proceed in 2025, $3.6 million in labour costs due in part to vacancies throughout the organization and ongoing recruitment challenges, offset by expenses of approximately $3.6 million related to changes in estimate related to the asset retirement obligation for the landfill and $5.3 million in amortization expenses in excess of budget estimates.

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