Audited Financial Statements For the Year Ended December 31, 2016

Presentation Content Financial Statement Overview Audit Findings Report

Background These financial statements combine: tax based operations enterprises local boards capital activity reserve fund activity government business enterprises

Understanding Surplus Continued on next slide

Understanding Surplus (Continued) Continued from previous slide

Tangible Capital Assets

Financial Condition Overview

Municipal Financial Condition It is a municipality’s ability to finance its services on a continuing basis It refers to a City’s ability to: Maintain required service levels Withstand local and regional economic disruptions Meet the demands of natural growth, decline and change

Municipal Debt

Reserve Funds

Reserve Fund Categories Funds Corporate Development Program Specific Stabilization Capital

Reserve Reporting by Category   Total Corporate Reserves Development Charges Total Program Specific Reserves Total Stabilization Reserves Total Capital Reserves Total Reserves: Actual 2016 7,500,643 (3,395,351) 10,422,750 14,786,380 35,264,039 64,578,460 Minimum Reserve Target 17,840,900 - 15,000 28,630,440 52,319,800 98,806,140 Maximum Reserve Target 26,848,850 5,000,000 11,534,000 51,923,097 180,490,875 275,796,821 % of Minimum Target 42% 0% 69,485% 52% 67% 65% Actual 2015 7,132,266 (2,322,781) 9,651,465 11,635,787 32,169,467 58,266,203 % Change from Prior Year 5% 46% 8% 27% 10% 11% Note: Reserve total by category ($65M) differs from financial statements ($55M) due to: Some reserves classified as deferred revenue on financial statements Federal Gas Tax, Building Enterprise, Parkland, Development Charges Consolidation of other entities Library, Centre in the Square, Kitchener Downtown Business Improvement Area

Debt to Reserve Ratio Municipality 2015 Debt to Reserve Ratio Brampton 0.3 Burlington 0.6 Cambridge St. Catharines 2.1 Vaughan Waterloo 1.3 Whitby -   Average 0.7 Median Kitchener 1.8

Financial Position Per Capita

Summary In order to preserve the City’s strong financial position: Reduce debt Build reserve balances Retain long term investments

Audit Findings Report