Response to Ontario Regulation 286/09 Budget Matters - Expenses

In addition, the Regulation requires that the City: - Prepare a report about the excluded expenses which contains: - An estimate of the change in accumulated surplus as a result of the exclusion of the above expenses; and - An analysis of the estimated impact of the exclusion of these expenses on future tangible capital asset funding requirements. - Adopt the report prior to the adoption of its annual budget. This report is presented to Budget Committee and City Council in response to the Regulation. The 2023 value of the excluded expenses, which represent non-cash accounting expenses required for financial reporting, is estimated to be $1.64 billion for 2023. These expenses, once recognized in the City's consolidated financial statements, will reduce the City's accumulated surplus balance. It is important to note that the City's accumulated surplus represents the City's net investment in its tangible capital assets.