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2024-07-16 Growth Committee Agenda Packet - Open Session�B City of Saint John Growth Committee - Open Session AGENDA Tuesday, July 16, 2024 11:30 am 2nd Floor Boardroom, City Hall 1. Call to Order 2. Approval of Minutes 2.1 Minutes of May 28, 2024 3. Approval of Agenda 4. Disclosures of Conflict of Interest 5. Consent Agenda 5.1 Summer Events Overview 2024 6. Presentations/Delegations 6.1 Age -Friendly Communities 6.2 ABC Report - Saint John Transit Commission 7. Business Matters 7.1 Housing Accelerator Progress Update 7.2 Community Enhancement Project Update 7.3 Growth at a Glance 8. Referrals from Common Council 9. Adjournment Pages 1-3 4-12 13-31 32-71 72 - 88 89 - 100 101 - 102 Growth Committee Meeting Open Session May 28, 2024 The City of Saint John MINUTES - OPEN SESSION GROWTH COMMITTEE MEETING MAY 28, 2024 @ 11:30 A.M. COMMON COUNCIL CHAMBER, CITY HALL Present: Deputy Mayor John MacKenzie, Chair Mayor Donna Noade Reardon Councillor Barry Ogden Councillor Gerry Lowe Councillor Brent Harris Also Present: Chief Administrative Officer B. McGovern Commissioner Growth & Community Planning A. Poffenroth Director Growth & Community Planning D. Dobbelsteyn General Counsel M. Tompkins Solicitor J. Boucher Director Community Planning & Housing P. Nalavde City Clerk J. Taylor Administrative Officer R. Evans Administrative Assistant K. Tibbits 1. Meeting Called to Order Deputy Mayor MacKenzie called the Growth Committee open session meeting to order. 2. Approval of Minutes 2.1 Minutes of April 16, 2024 Moved by Mayor Noade Reardon, seconded by Councillor Harris: RESOLVED that the minutes of April 16, 2024 be approved. MOTION CARRIED. 2.2 Minutes of April 22, 2024 Moved by Councillor Lowe, seconded by Councillor Harris: RESOLVED that the minutes of April 22, 2024 be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Councillor Harris, seconded by Councillor Ogden: RESOLVED that the agenda of May 28, 2024 be approved. MOTION CARRIED. 4. Disclosures of Conflict of Interest No disclosures of conflict of interest. 1 Growth Committee Meeting Open Session May 28, 2024 5. Consent Agenda (Recommendation: Receive for Information) 5.1 RESOLVED that the submitted 2024 Growth Committee Work Plan be received for information. 5.2 RESOLVED that the submitted presentation Newcomer Settlement Portal be received for information. 5.3 RESOLVED that the submitted report North End Neighbourhood Plan Boundary be received for information. 5.4 RESOLVED that the submitted presentation Ethnocultural Small Grant Program 2023 Annual Report be received for information. 5.5 RESOLVED that the submitted report Lord Beaverbrook Rink Annual Report be received for information. MOTION CARRIED. 6. Presentations / Delegations 6.1 Presentation by Friends of Rockwood Park Joan Pearce, Friends of Rockwood Park, provided an overview of the submitted presentation entitled "Please Save Rockwood Park" with respect to a request for Council to rescind a motion declaring 1671 Sandy Point Road as surplus land. Moved by Councillor Ogden, seconded by Councillor Lowe: RESOLVED that the Growth Committee direct staff to return with a report on 1671 Sandy Point Road at a subsequent meeting of the Growth Committee. MOTION CARRIED. 6.2 Immigration Trends Report David Campbell, Jupia Consultants Inc., reviewed the submitted presentation entitled 'Succeed and Stay: Immigration Patterns Report for Greater Saint John." Mr. Campbell discussed trends in population, workforce, immigration and non -permanent residents, international students, immigration retention as well as immigration targets and results. Moved by Mayor Noade Reardon, seconded by Councillor Lowe: RESOLVED that the submitted presentation Succeed and Stay: Immigration Patterns Report for Greater Saint John" be received for information. MOTION CARRIED. 6.3 Saint John Trade and Convention Center Lisa Porter, Saint John Trade and Convention Center, provided an overview of the 2023 financial results and key highlights, and also commented on the financial forecast for 2024. Moved by Mayor Noade Reardon, seconded by Councillor Harris: RESOLVED that the 2023 Annual Report for the Saint John Trade and Convention Center be received for information. MOTION CARRIED. 6.4 Canada Games Aquatic Centre Amy McLellan, Canada Games Aquatic Centre, provided an overview of the 2023 financial results and key highlights, and also commented on the financial forecast for 2024. Moved by Mayor Noade Reardon, seconded by Councillor Harris: E Growth Committee Meeting Open Session May 28, 2024 RESOLVED that the 2023 Annual Report for the Canada Games Aquatic Centre be received for information. MOTION CARRIED. 6.5 Saint John Free Public Library Laura Corscadden, Saint John Free Public Library, provided an overview of the 2023 financial results and key highlights, and also commented on the financial forecast for 2024. Moved by Mayor Noade Reardon, seconded by Councillor Lowe: RESOLVED that the 2023 Annual Report for the Saint John Free Public Library be received for information. MOTION CARRIED. 7. Business Matters 8. Referrals from Common Council 9. Adiournment Moved by Councillor Lowe, seconded by Councillor Harris: RESOLVED that the open session meeting of the Growth Committee be adjourned. MOTION CARRIED. 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Q) � N C6 � i U Q a--+ C6 � L U i uj O 0 �O O _ 4. � � N L W O � Q a� f0 Q Q � L 0 >� c6 do C � N .— a- + f U Z3 Ln E cn N 41 E N 4- cn O > U 4� U � 0 L i U 0 a + O M N N m m N �l m O O 00 00 u� Tt Ln n Qb O Ln U M Agencies, Boards, and Commissions Policy — Standard Reporting Template Saint John Transit Commission • • • • • July 1,2023 to December 31, 2023 The Saint John Transit Commission was established by the City of Saint John to operate the public transit system, in alignment with the municipal and transportation plans (PlanSJ & MoveSJ). The City has the obligation under the legislation to finance all net operating and capital expenditures. The Commission has full power and authority to maintain and operate a public transit system. In 2021, the Saint John Transit Commission signed a Managed Services Agreement with the City of Saint John and began the "Transforming Transit" project which will see a multi -year system redesign focused on providing better service and sustainability for the system. • 1. Ratio of annual 2023: 25.50, Below Target, Improving Ridership per population. 2022: 20.32 (How well is Transit 2021: 16.17 used) Target: 28.5 2020: 17.33 2019: 29.84 2. Transit coverage: 85% Goal of 85% with route re -design and on - of pop within 800m of a demand service: On Target bus stop 3. Riders per revenue 2023: 22.40, Below Target, Improving hour comp avg 22 2022: 20.51 (measures service hours 2021: 15.77 and ridership as a ratio 2020: 15.29 of effectiveness) 2019: 21.66 • 78 2022: 71 • 2021: 67 2020: 70 2019: 89 • 2023: 86,509 Service 2022:72,928 Service hours & 1,495,488 riders hours & 1,937,659 riders 2021:73,684 Service hours & 1,161,984 riders • 2020:80,926 service hours & 1,237,165 riders 2019:97,721 service hours & 2,116,435 riders • • •0 The goal is growth in ridership and revenues by redesigning the service to provide flexibility and sustainability though a better service offering. • Six New 20-foot electric buses leased (Q2-2022) commissioned (Q1-2023) •0 On -demand software supplier procured (Q3-2022), implementation in (Q1-2023) •0 New Electronic fare provider procured (Q3-2022), implementation in (Q1-2024) • •0 Charging hardware procured (Q2-2022) and commissioning completed in (Q3-2023) • Saint John Flex, "on -demand" West area defined (Q2-2022), launched (Q1-2023) • Saint John Flex, "on -demand" North area defined (Q4-2022), launched (Q3-2023) • Saint John Flex, "on -demand" East area defined (Q4-2022), launch (Q4-2023) • Three Rapid routes defined (Q3-2022) and launched (1-Q4-2022, 2-Q3-2023) • Developed and released RFP for CAD/AVL (Q4-2022) and awarded (Q4-2023) • Hiring on -going to enable sustainability and on -demand service (Q3-2022 to Ongoing) • Bus stop si na e designed Q3-2023 to Ongoing) W Agencies, Boards, and Commissions Policy - Standard Reporting Template • 1. Operating Revenue/cost 2023: $0.42 ratio 2022: $0.39 Comparable is $0.35 2021: $0.36 2020: $0.34 2019: $0.44 2. Cost per vehicle hour. 2023: $126.75 Comparable is $106.78 2022: $136.20 2021: $108.78 2020: $110.67 2019: $110.79 3. Expense per rider, 2023: $5.66 Comparable is $5.34 2022: $6.64 2021: $6.90 2020: $7.24 2019: $5.12 • $5,630,640 2022: $5,490,683 • • 2021: $5,044,787 2020: $5,894,787 2019: $5,781,924 • $6,446,488 $6,225,292 2022: $5,681,482 2021: $5,353,886 2020: $5,982,982 2019: $6,879,197 • • • = $4,518,557 $3,707,308 2022: $4,251,028 2021: $2,661,742 2020: $2,972,908 2019: $3,947,313 • 78 76 2022: 71 2021: 67 2020: 70 2019: 89 • - $4,630,742 $4,301,961 2022: $3,864,946 2021: $2,857,092 2020: $3,059,858 2019: $4,813,284 • - $10,965,045 $9,932,600 2022: $9,932,510 2021: $8,015,628 2020: $8,955,980 2019: $10,826,510 • $(703,663) $(0) 2022: $(216,995) 2021: $(113,749) 2020: $(1,245) 2019: $(231,302) • Fuel prices continue to be erratic and very high. 51 V Revenue / Ridership while increasing, has not returned to the level forecast. 091 Agencies, Boards, and Commissions Policy - Standard Reporting Template • 1. On -time performance 1. TBD CAD/AVL system in (How often do buses arrive at procurement stops as scheduled). Target TBD 2. Wrench time % 2. TBD Management (Productive time of information system to be maintenance). Industry implemented for standard is 65% maintenance. 3. Maintenance cost per 3. 2023: $22.54 vehicle hour. Target TBD 2022: $23.34 2021: $23.64 2020: $26.67 2019: 26.27 4. Avg Fleet Age. 4. 2023: 10.0 years (6-year target) 2022: 9.0 years 2021: 9.5 years 5. Travel Time Ratio (Auto vs 5. TBD, project underway to Transit). Target TBD measure. 6. CO2 emissions to align 6. TBD with project outcome with "Greening the Fleet" project. Target TBD • The SJTC is currently reviewing our current fleet management system, the CoSJ's fleet management system and our proposed Computer Automated Dispatch / Automated Vehicle Locator (CAD/AVL) to develop future benchmarks. SJTC will work in conjunction with the CoSJ's Performance Management Team to develop appropriate Key Performance Indicators (KPI's). • - Complete transit turnaround will take multiple years to complete. Project is • tracking well, on target and on budget. • • Appropriate funding for continued system redesign. • • - Sustainable capital plan for Transit. • Ability to replace aging fleet through capital expenditures. • Hiring Challenges. • Greening / electrification of the transits stem. ■ . 5 N O N z z C z LO M ft=IJIL-� E c6 hA O d N E N U f6 Q N f6 � Q N U 0 � � O � U 0 O W Q N a Q •— o o v N W U V' bA N a-J f6 N Q i Q O _ N W U .> V) Z Q m cn a Ln 4-1 i� •N +�.+ c .0 w •� O L cc0 3 Ln � G • N • W • • 0--a Gn z 9 z z I� uo M N O O i L O •- z V iN 0 � O bA L O .� � v N � N � Q m O _ a 4-J 'N •— N O }' � N N O U c O •- bA V c V CL 4 i Q •- v v O c Ev +_' 0 O 4A a) E O ._ GJ Q O � t1A �N•+ N � � L .tw : O U Q E N LLL i•--4 G7 z 9 z O l� z 0-4 uo I- CY) • N L Qi �®w Y 1 0 bE i N w m O � N 0 i O s H V ■■ • • • �(A • G=� z 9 z O l� z I� co M Ll) m v O m � N � O }, N � ' r-I O cr c O v m 4-J U N U rNI m C ca O v m a� No m +� -0 N N m N p`� N N O p m (1) O (V u u S .� f6 cr i i U N U O N N f6 f6 'u N cn •� N � i _ •E : N E O N O •� U v w u •N U O u O O O w E J O J iJ A] 0 L.L i 4-J L.L (/ i L N O C i C U J a--+ o o 0 N zJ 4-1 N . 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LU N m N O cr _N 4-J 4-J U m z 0--4 Lll) z 9 H Z x 0 z 0-4 uo rn M N O m O N O E O 4 -+ N Q Cr N U a-J O N Q � � > Q O N t1A a-J (D N = m � i N N E C� ON O N U N LL W ca Cf cr O p LU ^ N W Z3 U — N O _LL 'O Cl N o v cn O O p N O `~ N m No V v O o Cr O N N E C1 Q � m O 'Ln O 'O N U >N u mY •� 0 N N . 0 CJ W O i� N N O Q O _ c6 > Q 4-J N U LL - J Q N Q 'N N O — m ® N N aj a) U _N 'E 42 " U _0 � t1A U O a.., p t1A — M N - O U v N .0 z o> > m u Q N 0--4 G7 z 9 z 0 z 0-4 uo 0 0--4 Giro z 9 z 0 z 0-4 uo N N N � � m E w I N -0 00 H O N E i I Q m v N m rn Q =3 w Q r-I i m _ OLU o Q O U_ •> ~ N N v O I � v N I Q � co }� U 00 N E w c fB p �n O m I I 0) cn rn °° � M I o o o N O N LU N N Ln I I 0P0 N 0000 M r-I V i N � V N Q ro v U QO � � N W o m CL �+ Y 1 U QR(n L Q rr ) O N N 0 � Ln o U ca (/� N Ln , MIF i2 4-j L O N � � N o L7 z 9 z z N 0--4 C:7 z 9 z 0 z 0-4 uo M O ro U w Al k* 9 4-0 a E N fu w O O aA Z z 0 0 0 0 0 0 0 0 ■ C16• O Saint John Transit Commission Annual Report 2023 -W, Table of Contents Letter from the Chair 3 Business Profile & Performance Reporting 4 Key Accomplishments and Milestones 5 Management Discussion and Analysis 6 Report to Board of Directors 10 on the 2023 Audit Saint John Transit Commission 13 Audited Financial Statements The Saint John Transit Commission would like to credit and thank FJ Productions and the Government of New Brunswick for the photos used on the cover and pages 2, 5, 8, and 73. Letter from the Chair The next phase of Transforming Transit started strong in 2023 with the introduction of our first on - demand transit service. Called Saint John FLEX, riders can order a bus when needed within one of three FLEX zones on the west side, Millidgeville and east side of Saint John. This new offering has improved service availability and coverage in less densely populated areas that can be challenging to provide convenient service with a traditional fixed route. Feedback has been very positive, and ridership has grown steadily through the year. Launching the Saint John FLEX service was a massive feat with many moving partings including new dispatch technology, operating and maintaining our first electric powered buses, strategic market- ing and much more. On behalf of the Saint John Transit Commission, we could not be prouder of the team of mechanics, operators, dispatchers, and managers that not only made it work, but a ser- vice that is envied across the country. Saint John FLEX has attracted the attention of industry lead- ers, but most importantly, has made a significant impact with over 24,368 completed boardings across the three services in 2023. Making this even more impressive, these efforts did not take away from fixed route services, which also continue to see strong growth, ending the year with 1,937,659 passenger trips across 1,649,665 kilometres and 86,509 service hours. Inflationary pressures have affected many industries and public transit is not immune. The Saint John Transit Commission approved a $0.25 cash fare increase, the first increase in over a decade. To better guide future fare price reviews and ensure any change is moderate, the Saint John Transit Commission has approved a new fare policy, which includes on -going monitoring guidelines and a discounted rate to incentivise more cost-effective forms of fare collection such as e-tickets. At the beginning of 2023, Ian MacKinnon joined the Saint John Transit Commission as the Director of Transit and General Manager. On behalf of the Saint John Transit Commission, I would like to welcome Mr. MacKinnon and thank him for his leadership as the Commission prepares for another strong year in 2024. As always, I would like to thank Saint John Common Council for supporting a growing public transit service for Saint John residents. Investment in public transit is an investment in environmental sustainability, community inclusion and economic development. Nick Cameron Chair Saint John Transit Commission 3 Business Profile The Saint John Transit Commission was established in 1979 by the City of Saint John to own and oper- ate scheduled public transit service in the city. In 2022, Saint John Transit began to operationaIize the Transforming Transit project, designed to en- sure that the service operates sustainably*, better serves current riders, attracts new riders and adopts industry standards. Since January 2023, the Saint John Transit team has worked together to add six electric vehicles, in- crease service on 13 fixed routes, create three FLEX on -demand zones and introduce the SJTRides e-fare payment app. In 2023, our team of operators provided over 1,937,659 passenger trips across 1,649,665 kilometres and over 86,509 service hours. Our skilled mechanics, maintenance staff and cleaners manage and maintain a fleet of 40 convention- al buses, six electric buses and six specialized service vehicles. Our team provides training, operations, supervisory, dispatch, financial services and administrative support to maintenance staff and operators. *financially and environmentally Performance Reporting 2023 KPI Target Operating revenue/cost ratio, comparable rate is $0.35 Cost per vehicle hour, comparable is $106.78 Expense per rider, comparable is $5.34 Ratio of annual ridership per population. 28.5 Transit coverage: 85% of population within 800 M of a bus stop Riders per revenue hour, comparable average is 22 2023 KPI Actual $0.42, above target $126.75 below target, improving $5.66 below target, improving 25.50 below target, improving Goal of 85%with route re -design and on - demand service, on target 22.40, above target Annual performance The SJTC is reviewing our current fleet manage- ment system, CSJ's fleet management system and our proposed Computer Automated Dispatch / Automated Vehicle Locator (CAD/AVL) to develop future benchmarks. SJTC will work in conjunction with the CSJ's Performance Management Team to develop appropriate Key Performance Indicators Year to date performance Complete transit turnaround will take multiple years to complete. Project is tracking well, on target and on budget. Saint John Transit Commission AnnQ Report 2023 121 Key Accomplishments and Milestones • On -demand software supplier procured (Q3-2022), implementation in (Q1-2023) • Charging hardware procured (Q2-2022) and commissioning completed in (Q3-2023) • Six new 20 foot electric buses leased (Q2-2022) commissioned (Q1-2023) • SaintJohn FLEX "on -demand" West area defined (Q2-2022), launched (Q1-2023) • Westside routes redesigned and service hours added (Q1-2023) • Two maintenance staff certified as "Qualified Electrician for HV Systems' in motorvehicles byTOV SOD, a leading globally recognized testing and certification organization (Q3-2023) • SaintJohn FLEX "on -demand" Millidgeville area defined (Q4-2022), launched (Q3-2023) • North and South end routes redesigned and service hours added (Q3-2023) • SaintJohn FLEX "on -demand" East area defined (Q4-2022), launched (Q4-2023) • East routes redefined and service hours added. This included the introduction of the Route 35 NBCC Shuttle (Q4-2023) • New electronic fare provider procured (Q3-2022), implementation planned in Q1-2024 • Developed and released RFP for CAD/AVL (Q4-2022) and awarded (Q4-2023) • Hiring on -going to enable sustainability and on -demand service (Q3-2022 to ongoing) • Bus stop signage redesign project (Q3-2023 to ongoing) 2023 Service at a glance 86,509 78 40 6 723 15 3 1,937,659 Saint John Transit Commission Ann49 Report 2023 5 Management Discussion and Analysis It has been a year since I rejoined the Saint John Transit team, and I am pleased to provide my perspective for the 2023 Annual Reportc fthe Saint John Transit Commission. I ended last year's 2022 Annual Report message by saying, "If you thought 2022 was awe- some, stay tuned in 2023". 1 can confidently confirm these words. With the support of the Saint John Transit Commission, Saint John Common Council and our employees, we've made great strides advancing the Transforming Transit plan. As the result of the diligent work bythe entire Transit team, supported by City of Saint John staff, riders across the City began to see results of the plan in 2023. The plan, built from the Stantec Operational Audit, was laid out in late 2021 and execu- tion began in 2022. The plan identified timelines and steps to secure the technology and operational capacity we see in other successful transit systems. Systems for trip planning and electronic fare payment, computer aided dispatch (CAD), automatic vehicle location (AVL) and the necessary resources and equipment designed to provide a sustainable and modernized transit service, support a higher level of service and increase rid- ership. The project supports ActSJ, the Chy's Community Energy Action Plan. ActSJ maps a detailed pathway to net -zero emissions for Saint John with interim and 2050 targets. The project is also on-trackto meet Transits objectives asset out in the City of Saint John's 10- Year Strategic Plan. As you can appreciate, 2023 was a stellar but challenging year for Saint John Transit. Chal- lenging, refers to the sheer volume of initiatives, enhancements and technology imple- mented and delivered bythe dedicated professional Transitteam overthe course of twelve months. Riders began to see the big changes beginning January 1, 2023. Routes on the Chy's West side saw increased frequency, service hours and, to respond to project objectives, Route 1 was extended to service the Irving Oil Field House, a key community hub on the City's East side. FLEXWest on -demand service (replacing Routes 13 and 14) was intro- duced on January9, ushering in a completely newway of providing transit service to riders, with expanded hours, service area, on -demand service via app ortelephone, and the introduction of the FLEX buses, six -electric 20-foot Karsan buses. Saint John Transit was the first agency in North America to use the buses. To further enable system enhancements, the project team developed a recruitment cam- paign in March to attract new operators and maintenance staff. Positive results allowed the introduction of FLEXMillidgevilleservice in July and a host ofenhancementsto routes that service the North and South ends. FLEX East service was introd uced in October. Most other East routes were redesigned to meet community needs, including the introduction of Route 35 NBCC Expressto sup- portthe growing student population there. Saint John Transit Commission Ann5Q Report 2023 6 Management Discussion and Analysis Behind the scenes work for these enhancements was a massive undertaking. Staff kept existing routes and operations running smoothly all while developing new schedules for routes and drivers, working with new service providers to implement technology, training drivers and dispatch on new applications and buses, ensuring mechanics and maintenance staff could service new vehicles and acquire credentials, en- suring routes, stops, zones and Google GTFS technology (thank you to City of Saint John GIS staff) were updated and procurement went smoothly. Transit finance and administration provided support to all initi- atives. We are seeing results. Post pandemic ridership across the country is returning to 2019 levels and I am convinced that our significant work related to the Transforming Transit project is paying off. However, from an expense perspective, insurance and fuel costs were the main drivers that contributed to a deficit of $703,663. It is important to note that revenues and ridership were well up from 2022. In fact, 2023 actual reve nues of $4,630,742 exceeded budget projections ($4,301,961). Ridership has increased by almost 500,000 rides from 2022, still not at pre -pandemic levels, but very positive. In August, The Saint John Transit Commission implemented a fare policy and made the decision to raise fares across the board which will take effect on January 1, 2024. This will represent the first cash fare in- crease in over 11 years. Based on industry standards from across Canada, Transit reports on a set of key performance indicators (KPIs)that are measured and monitored closely. 2023 ridership reached 1,937,659 riders up 22.8%from 2022. This gave us a ratio of riders per population of 25.50 up 20% from 2022. We are trending positively in the direction to reach a target of 28.5 in the coming years. It is a pleasure to work with the staff at Saint John Transit. They are a small team but their continued professionalism and ability to adopt and integrate new technology and processes is remarkable. Thank you to City staff for continued support in improvement of transit service. What a year! I look forward to furthering our success and to implementing more service enhancements associated with the Transforming Transit project in 2024. Ian MacKinnon General Manager Saint John Transit Saint John Transit Commission Ann5Jl Report 2023 7 Saint John Transit Commission Financial Statements December 31, 2023 Saint John Transit Commission Contents Financial Statements Page Independent Auditor's Report 3 Statement of Financial Position 5 Statement of Operations and Accumulated Surplus 6 Statement of Changes in Net Debt 7 Statement of Cash Flows 8 Notes to the Financial Statements 9 6v Report to the Board of Directors on the 2023 Audit (DELOITTE) ■■ ■ SAINT JOHN TRANSIT Saint John Transit Commission Ann54 Report 2023 10 De'O1tte 44Ch Deloitt LLP Brunswick House 44 Chipman manan Hill, 7th f oor Sa nt John NB E2L 09 Canada Tel 506-632-1060 Fax 506.632.1210 www.deloitte.ca Independent Auditor's Report To the Board of Directors of Saint John Transit Commission Report on the Audit of the Financial Statements Opinion We have audited the financial statements of Saint John Transit Commission (the "Commission"), which comprise the statement of financial position as at December 31, 2023, and the statements of operations and accumulated surplus, change in net debt and cash flow for the year then ended, and notes to the financial statements, including a summary of significant accounting policies (collectively referred to as the "financial statements"). In our opinion, the accompanying financial statements present fairly, in all material respects, the financial position of the Commission as at December 31, 2023, and the results of its operations, changes in its net debt, and its cash flows for the year then ended in accordance with Canadian public sector accounting standards ("PSAS"). Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards ("Canadian GAAS"). our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Finonciol Statements section of our report. We are independent of the Commission in accordance with the ethical requirements that are relevant to our audit of the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance with these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation and fair presentation of the financial statements in accordance with PSAS, and for such internal control as management determines is necessary to enable the preparation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is responsible for assessing the Commission's ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless management either intends to liquidate the Commission or to cease operations, or has no realistic alternative but to do so. 55 11 Those charged with governance are responsible for overseeing the Commission's financial reporting process. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance but is not a guarantee that an and:t conducted in accordance with Canadian GARS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements. As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and maintain professional skepticism throughout the audit. We also: Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of interna! control relevant to the audit 'n order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Commission's internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management. Conclude on the appropriateness of management's use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Commission's ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor's report to the related disclosures in the financial statements or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor's report. However, future events or conditions may cause the Commission to cease to continue as a gong concern. • Evaluate the overall presentation, structure and content of the financial statements, including the disclosures, and whether the financial statements represent the underlying transactions and events in a manner that achieves fair presentation. We communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. &&O,Lm LLQ Charted Professional Accountants July 8, 2024 56 12 Audited Financial Statements 2023 (DELOITTE) ■� ■ ff-" ■ SAINT JOHN TRANSIT Saint John Transit Commission AnnUl Report 2023 13 Saint John Transit Commission Statement of Financial Position December 31, 2023 2023 2022 Note $ $ Financial Assets Cash Unrestricted 1,155 317,635 Accounts receivable Trade/Other 3 641,652 672,192 Due from the City of Saint John 8 807,680 216,993 1,450,497 1,206,820 Financial Liabilities Accounts payable and accrued liabilities 4 1,091,683 765,565 Employee future benefits 5 829,700 794,100 Due to the City of Saint John 8 1,422,280 832,020 Asset Retirement Obligation 12 65,400 - Long-term debt 6 7,319,000 8,814,000 10,727,963 11, 205, 685 Net Debt (9,277,476) (9,998,865) Non -financial assets Tangible capital assets 9 20,706,968 21,910,164 Inventory 730,632 628,075 Prepaid expenses 36,695 - _ 21,474,295 22,538,239 Accumulated Surplus 12,196,819 12,539,374 Approved by: Chairperson General Manager 5 58 14 Saint John Transit Commission Statement of Operations and Accumulated Surplus December 31, 2023 2023 Budget 2023 2022 (Unaudited) Revenues City of Saint John operating 5,630,640 6,334,303 5,490,683 City of Saint John debt reduction 1,746,105 1,745,331 1,820,484 Provincial grant - - 114,000 Operating revenues Monthly passes 1,350,000 1,592,340 1,115,552 Transca rd 1,350,000 1,008,961 835,188 Cash fares 800,000 810,674 694,895 Other 250,000 586,133 364,552 Bus charters 89,961 239,269 189,544 Suburban subsidy 150,000 134,121 181,621 Transfer from Reserves - - 127,519 Bus advertising 75,000 81,992 76,191 Bus charters - schools 75,000 66,726 73,194 Taxi inspections 42,000 40,459 33,325 Comex - Transcards 50,000 34,392 23,767 Bus tokens 20,000 24,220 22,120 Comex - Monthly passes 50,000 21,556 13,478 11,678,706 12,710,376 11,176,113 Expenses (Note 10) Transportation 6,718,377 7,130,585 6,939,900 Vehicle maintenance 1,661,993 1,949,744 1,702,132 Amortization of tangible capital assets - 1,819,753 1,927,876 Administration 1,198,928 1,417,348 756,469 Building 353,303 474,521 534,009 Interest (Note 6) - 250,331 291,484 Accretion expense of asset retirement obligation (Note 12) - 5,743 - Amortization of asset retirement obligation (Note 9) - 4,905 - 9,932,601 13,052,931 12,151, 870 Annual deficit 1,746,105 (342,555) (975,757) Accumulated surplus, beginning of year - 12,539,374 13,515,131 Accumulated surplus, end of year - 12,196,819 12,539,374 6 59 15 Saint John Transit Commission Statement of Changes in Net Debt December 31, 2023 2023 2022 Annual deficit (342,555) (975,757) Acquisition of tangible capital assets (621,462) (632,516) Amortization of tangible capital assets 1,824,658 1,927,876 Loss on disposal of tangible capital assets - 592,334 1,203,196 1,887,694 Increase in inventory (202,557) (36,400) Increase in prepaid expenses (36,695) - (139,252) (36,400) Decrease in net debt 721,389 875,537 Net debt, beginning of year (9,998,865) (10,874,402) Net debt, end of year (9,277,476) (91998,865) 60 16 Saint John Transit Commission Statement of Cash Flows December 31, 2023 2023 2022 Operating transactions Annual deficit (342,555) (975,757) Items not involving cash Amortization of tangible capital assets 1,824,658 1,927,876 Loss on disposal of tangible capital assets - 592,334 Increase in asset retirement obligation liabilities 65,400 Change in non -cash working capital items Accounts receivable trade 30,541 (373,138) Due from the City of Saint John (590,687) (103,246) Accounts payable and accrued liabilities 326,118 174,629 Employee future benefits 35,600 (34,530) Due to the City of Saint John 590,259 504,997 Inventory (102,557) (36,400) Prepaid expenses (36,695) - 2,799,982 1,676,765 Capital transactions Acquisitions of tangible capital assets (621,462) (632,516) Financing transactions Repayment of long-term debt (1,495,000) (1,529,000) (1,495,000) (1,529,000) Net decrease in cash (316,480) (484,751) Cash, beginning of year 317,635 802,386 Cash, end of year 2,155 317,635 61 17 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 1. General Saint John Transit Commission (the "Commission"), was incorporated on June 14, 1979 under the Saint John Transit Commission Act of the New Brunswick Legislature. Its principal activity is to develop, maintain and operate a public transit system within the City of Saint John (the "City".) The Saint John Transit Commission qualifies as a municipal corporation under Subsection 149(1)(d) of the Canadian Income Tax Act and, as such, is exempt from income taxes 2. Summary of Significant Accounting Policies Basis of Accounting These financial statements are prepared by management in accordance with Canadian public sector accounting standards established by the Canadian Public Sector Accounting Board. Cash Cash consists of cash on hand and on deposit at financial institutions. Financial Instruments The Commission's financial instruments consist of cash, receivables, payables, accrued liabilit es, due to the City and long-term debt. Financial assets and liabilities are initially recognized at fair value when the Commission becomes a party to the contractural provisions of the financial instrument. Subsequently, M financial instruments are measured at amortized cost. With respect to financial assets measured at cost or amortized cost, the Commission recognizes in annual surplus an impairment loss when there are indicators of impairment and it determines that a significant adverse change has occurred during the period in the expected timing or amount of future cash flows. When the extent of impairment of a previously written -down asset decreases and the decrease can be related to an event occurring after the impairment was recognized, the previously recognized impairment loss is reversed to annual surplus in the period the reversal occurs Inventory for Use Inventory for use consists of supply parts to maintain the bus fleet and are carried at the lower of cost or replacement cost. Cost is defined as average laid cost. Tangible Capital Assets Tangible capital assets are recorded at cost which includes all amounts that are directly attributable to the acquisition, design, construction, development or betterment of the asset. Cost includes overhead as well as interest costs that are directly attributable to the aquisition or construction of the asset. Overhead costs, such as property taxes paid while assets are under construction will be added to the cost of the asset. The cost, less residual value, of the tangib`e capital asset is amortized on a straight-line basis over their estimated useful lives as follows: tL 18 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 2. Summary of Significant Accounting Policies {Continued] Tangible Capital Assets Land: all land owned by the Commission, including land under buildings. N/A Buildings: all Commission owned buildings and infrastructure, broken into a single asset or broken into the following components: structural interior, exterior, services, 5 to 40 Years equipment and site works. Vehicles: all Commission owned vehicles, including buses, handibuses and vehicles. 5 to 20 Years Machinery and equipment: includes all information technology assets, signage, fare 3-20 Years boxed, maintenance equipment, furniture, wash bays and similar assets. The Commission has a capitalization threshold of $5,000. In the year of acquisition and the year of disposal, one half of the annual amortization is charged. Any item purchased under this threshold is recorded as an expense in the year during which the item is acquired. Tangible capital assets are written down when conditions indicate that they no longer contribute to the Commission's ability to provide services, or when the value of future economic benefts associated with the tangible capital assets are less than their net book value. -he net write -downs are accounted for as expenses in the statement of operations. Assets under construction are not amortized until the asset is available for productive use. Government transfers to the Commission for funding the purchase of a capital asset are recognized in the financial statements as revenues in the period in which events giving rise to the transfer occur, providing the transfers are authorized, any eligibility criteria have been met and reasonable estimates of the amounts can be made. Prior to that time, any amounts received are recorded as deferred revenue. Employee Future Benefits The Commission recognizes its obligation under its employee future benefit plan and the related costs, as disclosed in Note 5. The Commission has undertaken actuarial valuations Revenue Revenues are recognized in the period In which the transactions or events occurred that gave rise to the revenues. Cash fares are recognized as revenue when received. Transcard receipts are recognized when the requirements of performing the service are satisfied, providing that at the time of performance, ultimate collection is reasonably assured. Government transfers are recognized as revenues when the transfer s authorized, any eligibility criteria are met, and reasonable estimates of the amounts can be made Transfers are recognized as deferred revenue when amounts have been received but not all eligibility criteria have been met. 63 19 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 2. Summary of Significant Accounting Policies (Continued) Subsidies from the City The City is ob'igated under the Comm`ssion's Art of Incorporation to finance all net operating and capital expenditures. Net operating expenditures are defined as all revenues earned with the exception of City and Capital grants less expenditures. For funding purposes, amortization represents the long-term debt principal repayment rathan than amortization expense listed in the financial statements which i5 based on useful life. Expenses Expenses are recorded on an accrual basis. The cost of all goods consumed and services received during the year is expensed. Derivative Financial Instruments and Hedge Accounting The Commission enters into derivative financial instruments to manage its expose to commodity price risk, include fuel purchase swaps. The company designates certain derivatives as hedging instruments in respect to fuel price risk in cash flow hedges. Effective hedges of fuel price risk on firm commitments are accounted for as cash flow hedges. Amounts are recognized on the Statement of Operations in the periods when the hedged item affects the annual surplus, on the same line as the recognized hedge item Hedges are deemed effective when there is an economic relationship between the hedges item and the hedging instrument. Measurement Uncertainty The preparation of financial statements in accordance with Canadian Public Sector Accounting Standards requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the year. Key components of the financial statements requiring management to make estimates include: the useful life of capital assets, rates for amortization, allowance for doubtful accounts in respect of receivables, the allowance for inventory obsolescence and the accrual for employee future benefits Estimates are based on the best information available at the time of preparation of the financial statements and are reviewed annually to reflect new information as it becomes available. Measurement uncertainty exists in these financial statements. Actual results could differ from these estimates. Asset Retirement Obligation On January 2023, the Commission adopted Public Accounting Standard PS3280 - Asset Retirement Obligations. The accounting standard addresses the reporting of legal obligations associated with the retirement of certain tangible capital assets. The standard was adopted on a prospective basis at the date of adoption. Under the prospective method, the discount rate and assumptions used on initial recognition are those as of the date of adoption of the standard. The prior years comparative have not been restated. The Commission recognized an asset retirement obligation related to storage tanks used for oil/water seperation. The liablity was measured based on the removal cost incurreed on the removal the tank. The liability is discounted using a present value calculation and adjusted yearly for accretion expense. The recognition of a liability resulted in an accompanying increase to the respective tangible capital assets. The increase to the tangible capital asset is being amortized over their remaining usefule lives as outlined in note 2. 3. Accounts Receivable 2023 2022 Trade/general receivables (Note 7) 389,577 259,776 Accrued receivables 151,232 332,277 Federal Government receivable 100,843 80,139 641,652 672,192 64 20 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 4. Accounts Payable and Accrued Liabilities 2023 2022 Accounts payable 551,031 413,746 Payroll 359,776 301,271 Accrued liabilities 161,740 31,724 Accrued audit and actuarial valuation fees 19,136 18,824 1,091,683 765,565 5. Employee Future Benefits Under the collective agreement between the Commission and Amalgamated Transit Union, Local 1182, employees are entitled to a pay out of 50% of accumulated sick time to a maximum of 250 sick days upon retirement, providing they have accumulated at least 100 days. A liability has been recorded representing 50% of employees' accumulated sick days for each employee having accumulated 20 or more days. Based on actuarial valuation of the liabidty, the results at December 31 are as follows: 2023 2022 $ s Accrued benefit liability, beginning of year 756,600 866,000 Current service cost 44,800 55,400 Interest cost 34,900 21,600 Benefits paid and forfeitures (50,300) (123,500) Actuarial gain 1,900 (62,900) Accrued benefit liability, end of year 787,900 756,600 Unamortized actuarial gain 41,800 37,500 Liability for accumulated sick leave 829,700 794,100 Commission portion of benefits expenses Current period benefit cost 44,800 55,400 Interest cost 34,900 21,600 Amortization of actuarial loss 6,200 11,700 85,900 88,700 Significant economic and demographic assumptions used in the actuarial valuation are: Discount rate: 4.63%January 1, 2023 - 4.27% December 31, 2023 Inflation rate: 2.00% Expected remaining service life: 12 Years 21 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 6. Long -Term Debt Interest on Long -Term Debt The net amount of interest expense reported on the statement of operations is $250,331 (2022 - $ 291,484). 2023 2022 $ $ Interest on Debentures - Province of New Brunswick 2.55% to 3.55% due 2033 2,335,000 2,568,000 2.06% due 2031 1,600,000 1,800,000 1.35% to 3.55% due 2027 1,200,000 1,500,000 1.95% to 2.1% due 2024 334,000 668,000 1.65% to 3.2% due 2032 598,000 665,000 1.2% to 3.55% due 2031 531,000 598,000 1.05%to 3.65%due 2030 464,000 531,000 2.05% to 2.3% due 2024 100,000 200,000 1.15%to 3.9%due 2029 157,000 184,000 2.1% to 5.55% due 2023 - 100,000 7,319,000 8,814,000 Principle repayments required over the next five years are as follows: $ 2024 1,395,000 2025 961,000 2026 961,000 2027 961,000 2028 661,000 4,939,000 7. Financial Instruments and Risk Management The Commission, through its financial assets and liabilities, has exposure to the following risks from its use of financial instruments: credit risk and liquidity risk. The following analysis provides a measurement of risk as at December 31, 2021 Liquidity Risk The City is obligated under the Commission's Act of Incorporation to finance all net operating and capital expenditures; therefore there is inherently less liquidity risk. Fair Value The fair value of the Commission's financial instruments included in current assets and liabilities approximates their carrying values due to their short-term maturity. 22 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 Financial Instruments and Risk Management (Continued) Interest Rate Risk Interest rate risk is the risk that the fair value or future cash flows of a financial instrument will fluctate because of changes in market interest rates. The Commission is not exposed to significant interest rate risk. Credit Risk The Commission's credit risk is primarily attributable to its trade receivables. No allowance of doubtful accounts was recorded in 2023 based on previous experiences and the management's assessment of the current economic environment. The Commission manages its exposure to credit risk through credit approval procedures and monthly monitor-ng and analysis of aged receivables. The carrying amount of financial assets on the statement of financial position represents the Commission's maximum credit exposure at the balance sheet date. There is not a significant concentration of risk given the accounts are owed by a large number of customers on normal terms. At December 31, 2023, the following trade receivables were due, but none considered impaired: 2023 2022 S $ Trade Receivables Current 348,571 239,281 Aged between 31-60 days 29,114 20,069 Aged greater than 91 days 11,892 426 Total Trade Receivables 389,577 259,776 Price Risk The price risk is the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in market prices (other than those arising from interest rate risk or currency risk), whether those changes are caused by factors specific to the individual financial instrument or its issuer, or factors affecting all similar financial instruments traded in the market. The Commission has entered into a hedging agreement for its fuel purchases from February 1, 2015 to February 29, 2024 to minimize the risk. !t is the policy of the Commission to enter �nto fuel swaps to manage the commodity price risk associated with anticipated purchase transactions out to 12 months. The Commission's policy is to hedge up to 100% of the exposure. As at December 31, 2023, the Commission had the follow ng fuel swap contracts outstanding: Remaining Term Average Strike Price Quantity 2 months (Expires Feb 29, 2024) $1.12/litre 540,000litres 8. Related Party Transactions The Commission is related to the City as a result of the City's mandate to appoint the Board of Commissioners and its obligat on under the Commission's Act of Incorporation to finance all net operating and capital expenditures. During the year, the Saint John Transit Commission was charged administration fees for accounting sere ces of $53,000 (2022- $53,000) and equipment maintenance of $19,419 (2022 - $29,106) for computer services These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of considerat.on established and agreed to by the related parties. The account receivable due from the City of $807,680 (2022 - $216,993) relates to the operating deficit ($703,663) that the City is required to fund based an the Saint John Transit Commission Act and ($104,017) which is Transit's share in the City's pooled cash. The liability due to the City of $1,422,180 (2022 - $832,020) represents cash advances for capital expenditures and in prior year it includes the surplus that Transit was required to pay the City based on the Saint John Transit Commission Act. The amounts are non -interest bearing and have no set terms of repayment. 23 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 9. Tangible Capital Assets Asset Machinery & Work In Retirement Land Vehicles Buildings Equipment Progress Obligation 2023 Total $ S S $ S S $ Cost Balance, beginning of year 1,098,843 19,057,366 23,365,914 2,068,008 504,997 - 46,095,128 Additions - - - 578,538 (16,732) 59,656 621,462 Disposals - (113,019) - - - (113,019) Balance, end of year 1,098,843 18,944,347 23,365,914 2,646,546 488,265 59,656 46,603,571 Accumulated amortization Balance, beginning of year - 10,397,562 11,882,862 1,904,540 - 24,184,964 Amortization during the year 966,355 783,313 70,085 4,905 1,824,658 Amortization on disposals (113,019) - - (113,019) Balance, end of year - 11,250,898 12,666,175 1,974,625 - 4,905 25,896,603 Net book value, December 31, 2023 1,098,843 7,693,449 10,699,739 671,921 488,265 54,751 20,706,968 Asset Machinery & Work in Retirement Land Vehicles Buildings Equipment Progress Obligation 2022 Total S 5 S S S S $ Cost Balance, beginning of year 1,098,843 21,998,905 23,238,395 21068,008 - 48,404,151 Additions - - 127,519 - 504,997 632,516 Disposals - (2,941,539) - - - (2,941,539) Balance, end of year 1,098,843 19,057,366 23,365,914 2,068,008 504.997 46,095,128 Accumulated amortization Balance, beginning of year - 11,641,477 11,102,737 1,862,079 - 24,606,293 Amortization during the year 1,105,290 780,125 42,461 1,927,876 Amortization on disposals (2,349,205) - - (2,349,205) Balance, end of year 10,397,562 11,882,862 1,904,540 - 24,184,964 Net book value, December 31, 2022 1,098,843 8,659,804 11,483,052 163,468 504,997 21,910,164 6b 24 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 10. Schedule of Expenditures 2023 2023 2022 Budget Actual Actual (Unaudited) S S S Transportation Salaries and wages 3,694,480 3,782,725 3,294,806 Gas and oil 1,200,000 1,558,348 1,485,870 Fringe benefits 1,006,746 982,364 814,450 Parallel transit 344,000 392,251 376,754 Fleet insurance 360,000 230,374 216,518 Advertising 24,000 69,721 23,763 Passes and schedules 32,800 33,654 20,228 Un',forms 25,000 31,980 24,941 Vehicle 28,951 27,740 31,810 Miscellaneous 2,400 21,428 58,426 Loss on disposal of capital assets - 592,334 6,718,377 7,130,585 6,939,900 Vehicle Maintenance Salaries and wages 733,240 838,898 766,322 Supplies and parts 606,216 698,172 601,979 Fringe benefits 217,537 238,524 223,698 Tools and equipment 100,000 168,592 106,912 01 and grease 51000 5,558 3,221 1,661, 993 1,949,744 1,702,132 Building Heat, light and power 150,000 163,785 147,879 Building and maintenance 108,534 128,965 196,463 Insurance 19,511 98,719 111,490 Salaries and wages 65,058 62,819 64,336 Rea I estate taxes 10,200 20,233 13,841 353,303 474,521 534,009 Administration Postage and stationary 455,000 603,586 5,035 Salaries and wages 416,027 445,871 478,781 Fringe benefits 92,204 95,288 39,089 Miscellaneous 29,797 77,697 31,507 Administration fees (Note 8) 53,000 53,000 53,000 Transcard commissions 24,000 43,334 34,715 Equipment and maintenance (Note 8) 55,000 31,694 39,891 Professional fees 38,000 21,561 41,999 Communications 15,000 15,922 14,872 Training and courses 10,900 15,530 7,201 Memberships 10,000 13,865 10,389 1,198,928 1,417,348 756,469 6� 25 Saint John Transit Commission Notes to the Financial Statements For the year ended December 31, 2023 11. Accumulated Surplus Reconciliation to Province of New Brunswick (PNB) Requirements (Unaudited) 2023 2023 Annual deficit (342,555) Adjustments to 2023 annual deficit for PNB requirements Amortization expense and long-term debt repayment 324,753 Reclass equipment purchase 28,354 Reserve adjustment - vehicle (7,763) Reserve adjustment - building (13,438) 331,906 2023 annual deficit per PNB requirements (10,649) Accumulated surplus per PNB requirements, end of year 12. Asset Retirement Obligation The estimated liabiity is the present value of future cash flow assciated with the asset retirement costs discounted using an employee future benefit discounting rate of 4.63% for the year 2023. The Commission's Asset retirement obligation consists of obligation as follows: a) Storage tank The Commission has three storage tanks - two over ground and one under ground. The cost of removal of these tanks has been recognized under PS 3280 - Asset Retirement Obligation. The remaining estimated useful life of two above ground tanks are 12 years and one under ground tank is 17 years. Cost is estimated based on what local contractor is pricing to remove and dispose off the fuel tanks. The transition and recognition of asset retirement obligation involved an accompanying increase to the Capital Assets. Asset Retirement Obligation 2023 2022 $ S Gross Undiscounted expenditure 115,786 Opening balance, 01 January 2023 Adjustment to recognize asset retirement obligation on adoption (note 2 & 12) 59,656 Accretion expenses 5,743 Less: expense incurred Closing balance, 31 December 2023 65,400 70 26 71 27 z x 0 E=4 z U =4 x .s N N O N CA co O U � O � o Loom CL C f6 a LL Q x N O N It N O N C6 cm Cl) M L U co E N cu V � 0) V co O co co Q C: > O m }' cB �. O Df C N O C: O C_ O a:., •� L Q w (B O co W Q W ca L�- Vp ! 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Value of $863 6116 construction a M i ion projects (5-year average same period: $57.1 million) Number of residential permitted net units created 33 (5-year average same period: 153) Upcoming 13 projects with over 1,400 new units planned. Additional permi'-' • - activit Demandes de permis de construire revues 372 (moyenne sur 5 ans pour la meme periode : 346) 1UIN j 11 350 312 393 343 332 372 2019 2020 2021 2022 2023 ......................................................................................................................................................................................... . Valeur des pro'etsde 86.3 millions de dollars J construction (moyenne sur 5 ans pour la meme periode : 57.1 millions de dollars) Nombre d'unites residentielles nettes autorisees creees 334 (moyenne sur 5 ans pour la meme periode : 153) Avenir 13 projets avec plus de 1400 nouvelles unites prevus. Activite de delivrance de permis supplementaire