Item - 2022.EX34.18

The Executive Committee:

1. Received the report (June 27, 2022) from the Chief Financial Officer and Treasurer for information.

The City of Toronto (City) maintains balances that will be recognized as revenues in future years, in addition to reserves and discretionary reserve funds that are intended to support the City's future activities.  This report provides balances for deferred revenues (obligatory reserve funds), and reserves and discretionary reserve funds as at December 31, 2021.

As at December 31, 2021, the City reported $9,013.5 million in total deferred revenues (obligatory reserve funds), and reserves and discretionary reserve funds, which represents an increase of $1,427.7 million from the December 31, 2020 balance of $7,585.8 million. These balances are subject to annual changes based on amounts received from third parties, recognition of revenue based on meeting the obligations of third party agreements and revenue recognition principles, and transfers between funds as authorized by City Council (Council). A total of 94.9% of the City's deferred revenues, and reserves and discretionary reserve funds are fully committed, with the breakdown of the total balance as follows:

- Committed funds included in the City's deferred revenues (obligatory reserve funds), or in support of legislated, contractually bound or Council-directed activities ($7,909.2 million);

- Committed funds for capital costs and pressures on rate-based activities ($644.8 million); and

- Uncommitted funds of $459.5 million, or 5.1% of the total balance, are available to respond to various unanticipated costs and to stabilize various funding sources, including the tax base.