Item - 2021.EX26.7

The Executive Committee received the report (September 9, 2021) from the Chief Financial Officer and Treasurer for information.

This report summarizes the changes impacting the City of Toronto (the City)'s obligatory reserve funds (deferred revenues), and reserves and Council-directed reserve funds (accumulated surplus) as at June 30, 2021.

The City's deferred revenues (obligatory reserve funds) and reserves and Council-directed reserve funds (accumulated surplus) are subject to annual changes based on receipts from third parties, recognition of amounts into income and transfers between funds, which are authorized by legislation, third-party agreements, and Council's approvals. The tables and appendices reflect information by major category.

As at June 30, 2021, the City recognized $8,539.4 million of deferred revenues (obligatory reserve funds) and reserves and Council-directed reserve funds (accumulated surplus), which consist of the following balances:

- Committed funds for legislated, contractually bound or Council-directed activities ($7,579.0 million);

- Committed funds to fund capital costs and pressures on rate-based activities ($745.8 million); and

- Uncommitted funds for the City to respond to various unanticipated costs and to stabilize various funding sources, including the tax base ($214.6 million, equivalent to 2.5% of the total balance).
 

The reported balances include Council approved reserve and reserve fund loans that were granted to various agencies, City programs, and external parties, which must be repaid to the respective deferred revenues (obligatory reserve funds) and reserves and Council-directed reserve funds (accumulated surplus).