Item - 2023.EX2.2

 The Executive Committee: 

1. Received the report (January 17, 2023) from the Chief Financial Officer and Treasurer for information.

This report provides a statement of the Development Charge Deferred Revenues for the year ended December 31, 2021, as required by the Development Charges Act, 1997 (DC Act).  Development charges are recognized as liabilities called deferred revenues, on the City's Statement of Financial Position, when received and are recognized as earned revenue on the City's Statement of Operations and Accumulated Surplus when the capital expenditures these funds are intended to support are incurred. Use of these deferred revenues is restricted to activities specified in legislation or contractual agreements.  Amounts received are considered contributions to deferred revenues.

For the fiscal year ended December 31, 2021, City recognized Development Charges Deferred Revenues of $893.3 million and recognized $313.8 million in earned revenue based on capital expenditures.  Development Charge Deferred Revenues were allocated interest of $3.8 million based on City Council's (Council) allocation policy.  The final development charges deferred revenue balance at December 31, 2021 is $2,263.1 million, and is included in the City's overall Deferred Revenue balance in the City's audited consolidated financial statements.

This report provides a summary of the balances and activity of these development charge deferred revenues as of December 31, 2021, along with the details of the 2021 project costs funded from 2021 earned revenue from development charges.