Deferred Revenue Report at December 31, 2022

These development charges will contribute to the cost of growth related infrastructure required to provide municipal services that support new development. When these monies are received, they are recognized on the City's Statement of Financial Position as Deferred Revenue which is a liability. The deferred revenue amounts are recognized as earned revenue only when the committed investment is completed and expenditures recognized as tangible capital assets in the Statement of Financial Position or as operating expenses in the Statement of Operations and Accumulated Surplus. This report provides an update of deferred revenue balances at December 31, 2022, and earned revenue for the year ended December 31, 2022, which was included in the City's Statement of Operations and Accumulated Surplus in the consolidated financial statement. As at December 31, 2022, the City recognized $5,623.9 million in deferred revenues, increased by $2,259.6 million in monies received and reduced by $1,538.9 million in earned revenues as compared to the December 31, 2021 balance of $4,903.2 million. This balance represents accumulated deferred revenue balances, which are a reflection of obligated investments not yet completed to support growth, or goods and/or service commitments that the City must deliver to third parties, not yet earned and recognized as revenue. Deferred revenues are fully committed based on contractual obligations to support growth-related infrastructure investments in the community, or other service or operational performance obligations.