1. Audited Financial Statements
For the Year Ended
December 31, 2016

2. Presentation Content Financial Statement Overview
Audit Findings Report

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

4. Understanding Surplus
Continued on next slide

5. Understanding Surplus (Continued)
Continued from previous slide

6. Tangible Capital Assets

7. Financial Condition Overview

8. 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

9. Municipal Debt

10. Reserve Funds

11. Reserve Fund Categories
Funds
Corporate
Development
Program
Specific
Stabilization
Capital

12. 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

13. 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

14. Financial Position Per Capita

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

16. Audit Findings Report