Courtenay Annual Report 2025 draft

The Corporation of the City of Courtenay Notes to Consolidated Financial Statements Year ended December 31, 2025

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Sewer Utility Services: Provides for the delivery of sewerage removal and includes the planning, development and maintenance of the City’s sewer infrastructure. 15. TANGIBLE CAPITAL ASSET DETAILS (See Schedule 3 for further details) Contributed capital assets received and recognized in the year from developers, for various infrastructure works and related land and parks, and recorded in the consolidated financial statements in 2025 is $1,060,341 ($1,124,946 in 2024). Tangible capital assets include land under the City’s roads, recorded at a nominal amount. Art and historic treasures are displayed at various city facilities and consist of paintings, historical photographs, sculptures, carv ings, and other cultural artefacts. These items have not been included in tangible capital assets due to the inability of estimating

future benefits associated with such property. 16. RESTATEMENT OF 2025 BUDGET

The budget amounts presented throughout these consolidated financial statements are based upon the Five-Year Financial Plan approved by Council on March 12, 2025 except in regard to budget amounts for amortization, tangible capital assets, and the use of debt, reserves and prior year surpluses. The summary below shows the adjustments to the 2025-2029 Financial Plan Bylaw No. 3165, 2025 adopted by Council on March 12, 2025 and reflected in these consolidated financial statements:

Adjustments to 2025 Budgeted Annual Surplus Budgeted Surplus per Council approved Budget Purchase of Capital Assets

28,709,456 (7,040,000) (15,838,716) 3,838,100 (7,023,100) (6,300,000)

Amortization Budgeted Transfer from Reserves Transfer to Reserves Use of Prior Year Surplus Debt Issues in Financial Plan

Debt principle repayments in Financial Plan

829,600

Budgeted Deficit per Consolidated Statement of Operations

$(2,824,660)

17. CONTRACTUAL RIGHTS Following is the breakdown of the contractual rights at December 31, 2025: Contractual Right with

Description of Contractual Right 2026 2027

2028

2029

Total

Courtenay Fire Protection District Fire Protection

734,341748,720853,618907,140 $3,243,819

18. CAPITAL LEASES Effective January 1, 2024, the City entered into a 10 year agreement with Emterra Environmental for the use of solid waste carts with monthly payments of $34,796. This lease is deemed to hold an interest rate of 3.84% which is in line with the Municipal Finance Authority’s 10-year borrowing rate. The required minimum lease payments over the next 8 years are as follows: 2026 417,556 2027 417,556

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