Item - 2024.EX19.15

The Executive Committee:

1. Received the report (November 25, 2024) from the Chief Financial Officer and Treasurer for information.

This report provides an update of the deferred revenue balances as at September 30, 2024, and related earned revenue for the nine months ended September 30, 2024, for the City of Toronto (City).

The City receives monies from external parties and is obligated to set these monies aside for specific purposes outlined in Provincial legislation or third-party agreements. 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 when the committed investment is completed.  Related 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.

For the nine-month period ended September 30, 2024, the City’s deferred revenues increased from $6,362.1 million to $7,602.9 million. The increase of $1,240.8 million was primarily driven by the City receiving more monies ($1,490.3 million) than amounts recognized as revenue ($249.5 million) in the period with the greatest driver being contributions from the City’s water and wastewater revenues that will be leveraged to support ongoing water and wastewater expenditures and commitments.