Deferred Revenue Report at June 30, 2023

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 a liability called Deferred Revenue. The deferred revenue amounts are recognized as earned revenue only when the committed investment is completed, and expenditures are 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 June 30, 2023, and earned revenue for the period ended June 30, 2023, which is included in the City's Statement of Operations and Accumulated Surplus. As at June 30, 2023, the City recognized $6,838.9 million in deferred revenues, increased by $1,311.6 million in monies received and reduced by $96.6 million in earned revenues as compared to the December 31, 2022 balance of $5,623.9 million. This balance represents accumulated deferred revenue balances, which reflect 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. In particular, the City estimates that $22.7 billion of deferred revenues have been committed over the 2023-2032 period - this indicates that the City's commitments are 3.3 times greater than the amount of deferred revenues recognized as at June 30, 2023.