2025 Annual Report-final June 4

Message from the Deputy Director of Finance (continued)

At December 31, 2025, the City held five portfolio investments that met the criterion to be reported at market value. The market value of these holdings at the end of 2025 was $3.6 million more than cost and has been recorded as a remeasurement gain. 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 $20 million to $188.09 million at the end of 2025. Had the activities in the Financial Plan been completed as planned, financial assets would have decreased by $149.7 million, resulting in a reduction in net financial assets to $18.4 million. Timing differences between planned and actual capital expenditures are the main reason for this variance. 4. Consolidated Statement of Change in Net Financial Assets – Page 51

Consolidated Revenue Compared to budget (2025)

Revenues overall were below budget by $39.7 million, largely due to the capital program. Development fees (earned DCCs) and senior government transfers were budgeted based on expected capital project completion. Where those projects did not proceed as planned, the related revenue was not recognized, resulting in an unfavourable variance of $45.7 million. This unfavourable variance was partially offset by user fees exceeding budget

estimates by $6.8 million. Consolidated Expenses Compared to previous year (2024)

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 2025 increased by $15 million over 2024. This was comprised of increases in most reporting segments with overall increases of $6.2 million for goods and services, $8.1 million for labour, and $0.9 million for amortization of the City’s tangible capital assets. Consolidated Expenses Compared to budget (2025) Consolidated expenses for 2025 reflect a positive variance of $12.1 million compared to budget. Goods and services expenditures were below budget by $10.9 million, of which $3.5 is attributable to RCMP contract savings. The majority of savings in goods and services relates to projects that will proceed in 2026.

Continued >

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 2025 this resulted in reported remeasurement gains of $345.9 thousand.

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