2025 Annual Report-final June 4

FINANCIAL STATEMENTS

Notes to the Consolidated Financial Statements (continued) Consolidated Financial Statements

8.

A sset R eti r ement Ob li g ations ( cont ' d ) b). A s b estos o b li g ation

The City owns and operates several buildings that are known to have asbestos which represents a health hazard upon demolition or renovation of the building and there is a legal obligation to remove it. The buildings were purchased or constructed in various years and the liability has been measured as of the date of purchase or the date on which the legal obligation came into effect. c ). W ell decommissionin g o b li g ation The City has a number of wells which must be decommissioned in a prescribed manner as defined in the British Columbia Groundwater Protection Regulation. The wells were acquired or constructed in various years and the liability has been estimated at the time of acquisition or when the legal obligation came into effect. d ). L ease h old imp r ovement o b li g ation The City holds a lease arrangement which contains clauses requiring the decommissioning of any leasehold improvements at the end of the lease term. The liability has been measured as of the date the City entered into the lease arrangement. Changes to asset retirement obligations in the year are as follows:

December 31, 2024

Liability incurred (settled)

D ecem b e r 31, 2025 1, 02 1, 9 1 5

Accretion Expense

Buildings (asbestos) Leasehold obligations

$

985,667 $

(4,854) $

41,102 $

1,051 56,479

- -

44

1, 095 58 , 8 3 4

Wells

2,355

Landfill

21,216,963 22,260,160 $

(3,639,829) (3,644,683) $

719,985

1 8 , 29 7,11 9 1 9 ,37 8 , 9 63

$

763,486 $

December 31, 2023

Liability incurred (settled)

December 31, 2024

Accretion Expense

Buildings (asbestos) Leasehold obligations

$

1,056,600 $

(114,993) $

44,060 $

985,667 1,051 56,479

1,009 54,218

- -

42

Wells

2,261

Landfill

18,559,116 19,670,943 $

1,883,932 1,768,939 $

773,915

21,216,963 22,260,160

$

820,278 $

The 2024 $1,883,932 net addition to landfill consists of an addition of $3,602,127 and a settling of the liability in the amount of $1,718,195. The total estimated retirement costs for the landfill and all other categories are $20,014,752 and $1,169,725, respectively. 9. D efe rr ed R evenues Deferred revenues held by the City were comprised as follows: December 31, 2024 Additions Revenue earned D ecem b e r 31, 2025 Prepaid property taxes $ 10,764,573 $ 22,255,879 $ 21,237,656 $ 11,7 82 ,7 9 6 Connection Revenues 2,055,722 1,582,354 2,083,023 1, 555 , 05 3 Other 11,368,397 9,664,948 8,348,848 1 2 ,6 84 , 49 7 $ 24,188,692 $ 33,503,181 $ 31,669,527 $ 2 6, 022 ,3 4 6

City of Maple Ridge - 2025 Annual Report | 61