Deferred Revenue Report at December 31, 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 the deferred revenue balances as at December 31, 2023, and earned revenue for the period ended December 31, 2023, which is included in the City's Statement of Operations and Accumulated Surplus. As at December 31, 2023, the City recorded $6,301.7 million in deferred revenues, as compared to $5,623.9 million recorded at December 31, 2022. The increase was due to the $2,727.3 million in monies received exceeding the $2,049.5 million in revenues earned by $677.8 million. The deferred revenue balance represents accumulated deferred revenue, which reflects obligated investments not yet completed to support growth, or goods and/or service commitments that the City must deliver to third parties, but 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 and/or operational performance obligations.