June 24, 2025 Committee of the Whole Consent Agenda identified below be adopted.

19:48plan with levels of service and the Ontario Health multi sector service accountability

19:54agreement, the declaration of compliance. Those are the only ones that we have under consent.

20:00Does anyone need them pulled? No, you were just moving them where your accounts are going?

20:06Okay. And Galer will second. Thank you. Alt, you were just seconding that. Is that right?

20:13Yeah. Okay, thank you. So I'll call the vote on consent then. Is anyone against the consent?

20:18Nobody? Okay. Thank you. That's unanimous as well. We're jumping right into, excuse me,

20:24the presentation of our 2024 audited consolidated financial statements. And we do have a presentation

20:33from our owners coming down. Is Shannon, are you going to do some opening remarks or?

20:42Thank you, Mr. Mayor. Tisha Colley-Balgrove will do some opening remarks and then pass it over to

20:47Matt Baddick from KPMG. Okay. Perfect. Thank you. And you can start whenever you wish. Okay.

20:58Can you hear me? Okay. There we go. Good evening, Mayor Guthrie, members of council and members

21:14of the public who are joining us today. I am pleased to be able to present highlights from the 2024

21:19consolidated financial statements to you today. Before I begin, I'd like to thank all members of

21:24staff and our consolidated entities for their assistance with the city's audit and consolidated

21:28statements. I truly appreciate all their efforts as preparing the consolidated statements requires

21:33extensive communication and collaboration across the city and with our local boards. The municipal

21:39act requires the city to engage independent auditors to an expressive opinion as to whether

21:43the financial statements fairly present the city's financial results for the year. At the

21:48conclusion of this presentation, Matt Baddick, partner at KPMG will present the findings from

21:53their audit. The consolidated statements presents a full picture of the city and its consolidated

21:59entities finances, which include its assets, liabilities, revenues, and expenses. In May,

22:05the city presented the year-end budget-focused results for operating capital, reserves, and debt.

22:11The consolidated financial statements uses the same data set, but includes our consolidated entities

22:16and presents the information on a public sector accounting standard basis.

22:20The consolidated financial statements are prepared by city staff in accordance with the

22:57public sector accounting standards, which we refer to as PSES. These standards are set by the public

23:02sector accounting board of CPA Canada. Public sector accounting standards uses full accrual

23:07accounting, which differs from certain aspects of the city's presentation of budget-focused results.

23:12Differences include local boards financial results and the accounting treatment of capital assets,

23:18reserves, transfers, and debt. Along with the city's financial, the city also reports the

23:27financials of the Elliott community, the Downtown Guelph Business Association, Wellington Dufferin

23:31Guelph Public Health, Guelph Public Library Board, and the Guelph Police Services Board. The city also

23:37reports the city's shareholders' equity in Guelph Junction Railway and Guelph Municipal Holdings Inc.

23:42as investments on the statement of financial position. 2024 was another busy year for financial

23:51reporting, with the city implementing two new financial reporting standards and a new financial

23:55reporting guideline. The PS 3400 revenue standard enhances revenue recognition principles and

24:01specifically distinguishes between revenues with performance obligations and revenues without

24:06performance obligations. An example of revenues with performance obligations would be fees,

24:11where the city is paid for providing a good or service. An example of revenues without

24:15performance obligations would be fines. The adoption of this standard had a minimal impact

24:21on the city's revenues and resulted in an additional $1.7 million in revenues being recognized in 2024.

24:31The city also implemented PS 3161, Public-Private Partnerships. This standard applies when a public

24:37sector entity acquires infrastructure from a private sector entity that finances and operates

24:42that infrastructure. It provides accounting guidance for presentation in the financial

24:46statements. Staff analyze the applicability of this standard to current city operations

24:51and determine there were no impacts on the 2024 financial statements. Public Standard Guideline 8

25:01provides guidance for recording intangible assets if certain criteria is met. Although not a

25:09standard, the city did review the guideline and determined that there were no impacts on the

25:13financial statements as a result of this guideline. In 2024, the city continued the trend of increasing

25:23financial assets faster than financial liabilities. As noted in the 2023 Consolidated Financial

25:29Statement Report, staff expect to see a shift in the statement of financial position with continued

25:34increases to tangible capital assets and decreasing net financial assets as reserve funds are drawn

25:39down to implement the capital program. In 2024, the tangible capital assets increase was $106.6

25:46million compared to an increase of $359,000 in net financial assets. In future years, we expect

25:53to see this gap widen as we draw down reserve funds and take on more debt to build infrastructure.

25:58Deferred contributions decreased by $17.9 million. The main driver of this decrease is

26:04development charge or DC spending in 2024 that significantly exceeded inflows into the DC reserve

26:10funds. When DCs are collected, they go into dedicated DC reserve funds and are part of

26:15deferred contributions. When DCs are spent, that is when they are recognized as revenue on the

26:19statement of operations. In 2024, DCs of $67.9 million were spent to build growth-enabling

26:27infrastructure animatities while only $36.6 million flowed into the DC reserve funds.

26:32This is a combination of DC collections, funding of DC exemptions, and interest rates

26:37earned on those reserve funds. The year-over-year increase in development charge revenues are

26:43directly linked to this with large growth-funded projects in progress in 2024.

26:48The most notable projects are the South End Community Center and the Baker Street Library.

26:57Sorry, I flipped a little early. Other long-term liabilities increased by $10.6 million compared

27:04to 2024. The other long-term liability line is for the city's tax increment-based grant programs,

27:12which are known as TIBGs. TIBGs are grants linked to the increase in property tax assessment

27:17that the city pays to developers to encourage specific types of development in the city.

27:22The three TIBG streams that are included in that liability include the Brownfield Strategy,

27:27the Downtown Development, and the Heritage Redevelopment Programs. In 2024, there were