2025 Annual Report-final June 4

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements Consolidated Financial Statements

N otes to t h e Consolidated Financial Statements Fo r t h e y ea r ended D ecem b e r 31, 2025

For the year ended December 31, 2025

1. Cas h and cas h equivalents Cash and cash equivalents as at December 31, 2025 were comprised as follows: H oldin g R ate of r etu r n 2025

2024

Cash

N/A (2024 - N/A) N/A (2024 - 4.8%)

$

11,978,370 $ 38,650,279

GIC (Cash equivalent)

-

15,000,000 51,623,113

MFA pooled funds (Cash equivalent) 2.88% - 4.75%

104,163,544

(2024 - 3.44%-3.8%)

$

116,141,914 $ 105,273,392

Cash equivalents are comprised of a pooled mortgage fund managed by MFA which has generated returns at an interest rate of 4.75 % ( 2024 - 3.80%) and a pooled short-term bond which has generated returns at an interest rate of 2.88 % (2024 - 3.44%). In 2024, the City had a short-term Guaranteed Investment Certificate which generated returns at a rate of 4.8%. There were no such holdings in 2025. 2. P o r tfolio I nvestments Portfolio investments include Canadian bank notes, Guaranteed Investment Certificates and BC Credit Union term deposits with effective interest rates of 1.76% - 6.00% and years of maturity ranging from 2026 to 2034. A portion of the bank notes held have interest payments linked to the performance of a set of equities or a financial index without stated or certain interest rates. These have been classified as fair value financial instruments and recorded at their market value as at December 31, 2025. Fair value financial instruments with a face value of $41,000,000 (2024 - $41,000,000) have a market value of $44,610,810 as at December 31, 2025 (2024 - $38,749,115) resulting in an accumulated remeasurement gain of $3,610,810 (2024 - loss of $2,250,885). Portfolio investments as at December 31, 2025 were comprised as follows: Investment type 2025 Ca rry in g value 2025 Market value 2024 Carrying value 2024 Market value Deposit Notes $ 76,938,185 $ 75,269,695 $ 64,000,000 $ 62,263,635 GICs 115,986,654 122,370,854 133,698,856 135,890,958 192,924,839 197,640,549 197,698,856 198,154,593 Financial I nst r uments A mo r tized Cost Amortized cost is the amount at which the financial instrument asset is measured at fair value at inception plus accrued interest as at the financial statement date based on the imputed effective interest rate. Fai r V alue Fair value estimates are made at the Statement of Financial Position date based on relevant market information and information about the financial instrument. Financial instruments recorded at fair value in the City's Statement of Financial Position are categorized based on the level of judgement required to asses fair value. Hierarchal levels of fair value are defined by PS3450 as follows:  Prices (unadjusted) of assets or liabilities quoted in active markets (Level 1);  Inputs other than quoted prices included within Level 1 that are observable for the financial instrument, either directly (i.e., as prices) or indirectly (i.e., derived from prices) (Level 2); Accrued interest 9,712,744 3,610,810 n/a n/a 10,826,740 (2,250,885) n/a Remeasurement gain/(loss) n/a $206,248,393 $ 197,640,549 $ 206,274,711 $ 198,154,593

3.

58 | City of Maple Ridge - 2025 Annual Report