2025 Annual Report-final June 4

Message from the Deputy Director of Finance (continued)

Financial Assets: Cash and investments increased by $10.9 million over 2024. Liabilities:

Total liabilities decreased by $6.38 million from 2024. Changes to individual liability accounts are as follows: • Accounts payable decreased by $2.2 million. • Asset retirement obligations decreased by $2.9 million. • Deferred revenues increased by $1.8 million. • Restricted revenues increased by $6 million. • Refundable performance deposits decreased by $4.5 million. • Debt decreased by $4.4 million due to scheduled principal payments. Non-Financial Assets: Non-financial assets are comprised of the tangible capital assets held for use in service provision, undeveloped land bank properties, supplies inventories, and prepaid expenses. These represent economic resources available to the City for service provision, rather than a funding source to support the day-to-day operations of the City. In 2025 non-financial assets increased by $19 million over 2024, due primarily to a net increase in tangible capital assets. 2. Consolidated Statement of Operations – Page 49 This statement reports the City’s changes in economic resources and accumulated operating surplus for 2025, compared with budget and with 2024 results. Since annual revenues exceeded expenses, the City increased its accumulated operating surplus during the year. Included in this statement is information about the gain or loss on the disposal of capital assets. If tangible capital assets are disposed of before the end of their estimated useful life, any remaining book value associated with them is written off, resulting in an accounting loss, not a cash loss.

Consolidated Revenue Compared to previous year (2024)

Overall revenues in 2025 decreased by $27.7 million from 2024. The following provides some commentary on specific revenue items: • Revenue from general taxation increased $8.2 million through a combination of higher tax levies and growth of the assessment roll. • User fees and other revenues decreased by $11 million, primarily attributable to the one-time recognition of previously restricted revenue in 2024 related to the adoption of PS3400 – Revenue. • Government transfers decreased by $2.7 million overall. The change was primarily due to lower operating grant revenue, which declined from $9.5 million in 2024 to $4.88 million in 2025. This was partially offset by an increase in capital grant revenue, which increased from $2.52 million to $4.4 million. These changes can be influenced by timing of grant approvals and project progress. • Development revenues, often linked to capital projects, decreased by $4.5 million. Typically, year-over-year changes in these revenues are related to changes in capital expenditures reported on the Statement of Change in Net Financial Assets. • Revenue for contributed subdivision infrastructure decreased by $14.9 million, the result of a decrease in developer-contributed assets to the City as compared to 2024. Continued >

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