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2026-08-13 Finance Committee Agenda Packet - Open Session Finance Committee Meeting Open Session April 22, 2026 MINUTES OPEN SESSION FINANCE COMMITTEE MEETING APRIL 22, 2026 AT 3:15 PM MEETING CONDUCTED BY ELECTRONIC PARTICIPATION Present: Mayor D. Noade Reardon Councillor G. Sullivan Councillor P. Radwan Councillor G. Stewart Absent: Councillor G. Norton Also Present: Chief Administrative Officer I. Fogan Deputy CAO and Commissioner of Finance and Treasurer K. Fudge Commissioner Human Resources S. Hossack Commissioner Public Works & Transportation M. Hugenholtz General Counsel M. Tompkins Fire Chief R. Nichol Commissioner Growth & Community Services A. Poffenroth Director Growth & Community Support Services D. Dobbelsteyn Director Financial Services J. Forgie Director Financial Services C. Lavigne Director Engineering M. Baker Director Corporate Performance S. Rackley-Roach Director SJ Water K. Mason Director Parking and Parks & Recreation M. Dionne Intermediate Accountant V. Parikh Municipal Engineer M. Lester Assistant Chief Information Officer A. Russell City Clerk J. Taylor Administrative Assistant K. Tibbits 1. Meeting Called to Order Councillor Sullivan called the Finance Committee open session meeting to order. 2. Approval of Minutes 2.1 Minutes of March 18, 2026 Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the minutes of March 18, 2026 be approved. MOTION CARRIED. 3. Approval of Agenda Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the agenda of April 22, 2026 with the addition of Item Baseball Field; and 6.7 PRO Kids Dashboard, be approved. MOTION CARRIED. Finance Committee Meeting Open Session April 22, 2026 4. Disclosures of Conflict of Interest No disclosures. 5. Consent Agenda 6. Business Matters 6.1 Winter Management Audit Update Director Forgie introduced consultants from KPMG, B. Peever and E. Church, who conducted the audit included optimizing winter control operations to improve service quality; assessing current levels of service; reviewing comparator winter control programs; optimizing resource allocation; and aligning community needs. The goal of the review was to ensure operational efficiency, cost-effectiveness, transparency and public safety during winter months. The review was performed in 4 phases of work (Phase 1: Initiate, Phase 2: Assess, Phase 3: Strategize and Phase 4: Report). Moved by Mayor Noade Reardon, seconded by Councillor Radwan: information. MOTION CARRIED. 6.2 Disaster Mitigation and Adaptation Fund (DMAF) Funding Raising of the Courtenay Bay Causeway M. Baker reviewed the submitted Disaster Mitigation and Adaptation Fund (DMAF) Funding Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee: Endorse proceeding with the City signing the Disaster Mitigation and Adaptation Fund (DMAF) funding agreement as generally detailed in Exhibit #1 attached to the submitted report; and, Recommend that Common Council approve the DMAF agreement generally in the form that is attached to the submitted report for the Courtenay Bay Causeway project at its next meeting. MOTION CARRIED. 6.3 January March 2026 YTD Financial Results General and Utility Fund Director Lavigne reviewed the submitted and Utility Fund, March 31, 2026, Year-to- There are no significant financial concerns for the first quarter of 2026 and most variances are due largely to timing issues. Some of the early trends that may cause financial pressure in 2026 include fuel costs, fleet parts, overtime budgets for snow removal exceeding annual budgets, and unexpected inflationary costs. Moved by Mayor Noade Reardon, seconded by Councillor Stewart: Utility Fund, March 31, 2026, Year-to-Date MOTION CARRIED. 6.4 Long-Term Financial Plan and Debt Management Policy Deputy CAO Fudge City of Saint John Long Term Financial Plan 2027- The 2026 update to the Long-Term Financial Plan will update existing financial targets and goals, while continuing to adhere to existing financial policies. The 2023-2032 Ten Year Strategic Plan will drive the financial plan. The 2027-2036 Long Term Financial Plan will offer updated financial strategies to Finance Committee Meeting Open Session April 22, 2026 ensure the City can sustainably resource the Ten-Year Strategic Plan while leveraging stretch goals to Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee recommends approval of the 2027-2036 Long Term Financial Plan and key performance debt in the Debt Management Policy (FAS-006) and forward to Common Council for approval. MOTION CARRIED. 6.5 Generative Artificial Intelligence (Gen AI) Policy Statement Adoption S. Rackley-Roach reviewed the submitted While Gen AI offers opportunities to improve internal efficiency, analysis, and service delivery, it also introduces risks related to privacy, data management, accuracy, bias, cybersecurity, records management, transparency, and public trust. The proposed Gen AI Policy Statement and related draft policy establish a clear, principled framework to guide the responsible use of Gen AI within the City of Saint John, ensuring it supports human decision-making and remains aligned with legislative obligations, public-sector values, and community expectations. Moved by Mayor Noade Reardon, seconded by Councillor Radwan: RESOLVED that the Finance Committee recommend to Council the following resolutions as they relate to Generative Artificial Intelligence (Gen AI): a) Adopt the Gen AI Policy Statement: enhance and improve public service delivery. The City recognizes the transformative potential of these technologies and emphasizes that their acquisition, implementation, and use must be responsible, ethical, and compliant with all applicable regulations. b) Direct the Chief Administrative Officer (CAO) to finalize and implement a policy based on the Policy Statement. MOTION CARRIED. 6.6 St. Baseball Field Moved by Mayor Noade Reardon, seconded by Councillor Stewart: RESOLVED that the Finance Committee approve the funding of $175,000 from Capital Reserves towards City Pirates raising the remaining required funds. MOTION CARRIED. 6.7 PRO Kids Dashboard Chair Sullivan noted that as part of good governance and to ensure the fiscal sustainability and accountability of the PRO Kids program, staff have assembled a performance dashboard template to be used for annual reporting back to the Finance Committee so program health and effectiveness of the PRO Kids program can be effectively monitored and reviewed. Moved by Councillor Stewart, seconded by Mayor Noade Reardon: RESOLVED that the Finance Committee recommends Common Council directs PRO Kids to report the results of the PRO Kids Governance dashboard annually to the Finance Committee. MOTION CARRIED. 7. Adjournment Moved by Councillor Stewart, seconded by Mayor Noade Reardon: RESOLVED that the Finance Committee meeting be adjourned. Finance Committee Meeting Open Session April 22, 2026 MOTION CARRIED. The Finance Committee open session meeting held on April 22, 2026, was adjourned at 4:47 p.m. FINANCECOMMITTEEREPORT Report DateJuly 27, 2026 Meeting DateAugust 13, 2026 Service AreaStrategic Services Chairman SullivanandMembers of Finance Committee SUBJECT: 2026 Fall Debenture Notice of Motion OPEN OR CLOSED SESSION This matter is to be discussed in Finance Committee Open Session. AUTHORIZATION Primary AuthorCommissioner/Dept. HeadChief Administrative Officer Craig LavigneKevin FudgeIan Fogan RECOMMENDATION It is recommended that Finance Committee recommend to Council to approve the 2026 Fall Debenture of Notice of Motion. EXECUTIVE SUMMARY The attached Notice of Motion has beenprepared as a first step in borrowing for capital projects previously approved by Common Council. PREVIOUS RESOLUTION N/A STRATEGIC ALIGNMENT This action FinancialPlan. REPORT The attached Notice of Motion has been prepared as a firststep inborrowing for capital projects previously approved by Common Council.The purpose of the issue is summarized on the attached schedule. The Notice of Motionplacesthe City in a position toactafter the expiry of 30 days at such time as bond market conditions and opportunities permit. - 2 - At this stage, it is not necessary to set limits with respect to the coupon rate or the terms for which bonds are to be issued. These will be established later and will be related to the market conditions at that time. Purpose of Issue The City of Saint John Proposed issue of Debentures To Be Dated On or after September 13th, 2026 GENERAL FUND Protective Services $1,575,000 Transportation $2,200,000 Recreation and Culture $3,225,000 TOTAL $ 7,000,000 SAINT JOHN TRANSIT COMMISSION $ 1,000,000 SERVICE AND FINANCIAL OUTCOMES The debenture will be amortized over 15 years and will General Fund Operating Budget INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Name of Service Area/Stakeholder Name of Staff Person N/A ATTACHMENTS M&C 2026-176 Common Council Report 2026 Fall Debenture Notice of Motion COMMON COUNCIL REPORT M&C No.2 026-176 Report DateAugust 13, 2026 Meeting DateAugust 17, 2026 Service AreaFinance and Strategic Investments Her Worship Mayor Donna Noade Reardon and Members of Common Council SUBJECT:2026 Fall Debenture Notice of Motion AUTHORIZATION Primary AuthorDirectorExecutive LeadCAO Craig LavigneCraig LavigneKevin FudgeIan Fogan RECOMMENDATION HerWorship the Mayor gave the following Notice of Motion. at a meeting of Common Council held after the expiration of thirty days from this day, move or cause to be moved, the following resolution: Namely, RESOLVED that occasion having arisen in the public interest for the following Public Civic Works and needed Civic Improvements, that is to say: THEREFORERESOLVED that debentures be issued under provisions of the Acts of Assembly 52, Victoria, Chapter 27, Section 29 and amendmentsthereto, to the amountof$8,000,000 EXECUTIVE SUMMARY The attached Notice of Motion has beenprepared as a first step in borrowing for capital projects previously approved by Common Council. PREVIOUS RESOLUTION(S) FinanceCommittee August 13th, 2026 STRATEGIC ALIGNMENT This report10-Year General Fund Long Term Financial Plan. REPORT The attached Notice of Motion has been prepared as a firststep inborrowing for capital projects previously approved by Common Council.The purpose of the issue is summarized on the attached schedule. The Notice of Motionplacesthe City in a position toactafter the expiry of 30 days at such time as bond market conditions and opportunities permit. At this stage, it is not necessary to set limits with respect to the coupon rate or the terms for which bonds are to be issued.These will be establishedlaterand will be related to the market conditions at that time. Purpose of Issue The City of Saint John Proposed issue of Debentures To Be Dated On or after September 13th, 2026 GENERAL FUND Protective Services$1,575,000 Transportation$2,200,000 Recreation and Culture$3,225,000 TOTAL $7,000,000 SAINT JOHN TRANSIT COMMISSION $ 1,000,000 The debenture will be amortized over 15 years and will be funded from the Operating Budget. INPUT FROM OTHER SERVICE AREAS AND STAKEHOLDERS Name of Service Area/StakeholderName of Staff Person ATTACHMENT(S) N/A millions millions millions Millions Millions The City of Saint John Consolidated Financial Statements December 31, 2025 The City of Saint John Contents Consolidated Financial StatementsPage Independent Auditor's Report3 - 5 Consolidated Statement of Financial Position6 Consolidated Statement of Operations and Accumulated Surplus7 Consolidated Statement of Changes in Net Asset8 Consolidated Statement of Cash Flow9 Notes to the Consolidated Financial Statements10-36 2 Deloitte LLP Brunswick House th 44 Chipman Hill, 7Floor Saint John NB E2L 2A9 Canada Tel: 506-632-1080 Fax: 506-632-1210 www.deloitte.ca Independent Auditor’s Report To the Her Worship the Mayor and Members of Common Council of the City of Saint John Report on the Auditof theFinancial Statements Opinion We have audited the consolidated financial statements of the City of Saint John(the “City”), which comprise the consolidated statements of financial position as at December 31, 2025, and the consolidated statements of operationsand accumulated surplus, changes in net assetsand cash flows for the years then ended, and notes to the consolidated 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 Cityas at December 31, 2025, and the results of its operations, its accumulated surplus, changes in its net debt, and its cash flows for the years then ended in accordance with Canadian public sector accounting standards (“PSAS”). BasisforOpinion 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 Financial Statements section of our report. We are independent of the Cityin 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. ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancial 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 City’sability 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 Cityorto cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the City’sfinancial reporting process. 1 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 audit conducted in accordance with Canadian GAAS 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 internal control relevant to the audit in 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 City’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 City’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 City to cease to continue as a going 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. Plan and perform the group audit to obtain sufficient appropriate audit evidence regarding the financial information of the entities or business units within the City as a basis for forming an opinion on the financial statements. We are responsible for the direction, supervision and review of the audit work performed for purposes of the group audit. We remain solely responsible for our audit opinion. 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. Report on Other Legal and Regulatory Requirements As required by the Government of New Brunswick, we report that, in our opinion, the accounting principles in Canadian public sector accounting standards have been applied on a consistent basis. (To be signed Deloitte LLP) Chartered Professional Accountants Saint John, NB Date of the auditor’s report The City of Saint John Consolidated Statement of Financial Position As at December 31, 2025 20252024 $$ Financial Assets Cash and cash equivalents (Note 4) 156,729,982 143,574,545 Accounts receivable (Notes 5, 6 & 7) 29,640,157 43,900,064 Investment in energy services (Note 8) 103,327,000 90,647,000 Note receivable (Note 9) 12,500,000 15,000,000 Other investments (Note 10) 1,401,360 1,144,607 303,598,499 294,266,216 Financial Liabilities Accounts payable and accrued liabilities (Note 11) 55,388,090 44,692,302 Deferred revenue 4,402,303 3,769,683 Deferred government transfers (Note 12) 28,182,369 33,979,110 Post-employment benefits and compensated absences (Note 14) 26,907,100 44,358,000 Long-term debt (Note 13) 136,781,000 157,173,000 Asset retirement obligation (Note 20) 15,579,311 16,371,329 267,240,173 300,343,424 Net asset / (debt) 36,358,326 (6,077,208) Non-financial assets Inventory 3,440,731 4,708,910 Prepaid expenses 176,932 125,105 Tangible capital assets (Note 24) 1,021,922,914 1,012,608,566 1,025,540,577 1,017,442,581 Accumulated surplus 1,061,898,903 1,011,365,373 Contingencies (Note 15) Commitments (Note 16) Approved by: Donna Noade Reardon, MayorGary Sullivan, Chair of Finance Committee Jonathan Taylor, Common Clerk 6 The City of Saint John Consolidated Statement of Operations and Accumulated Surplus As at December 31, 2025 202520252024 Budget $$$ Revenues Property taxes 156,987,772 156,987,772 150,579,477 Unconditional grant 13,318,691 12,803,700 13,773,578 Fundy regional services commission grant 1,006,997 1,006,997 1,009,640 Other revenue from own sources (Note 29) 36,714,826 38,088,929 28,601,126 Water and sewer 54,628,482 50,054,201 63,679,362 Miscellaneous 1,281,679 1,824,652 3,966,433 Contributions from others (Note 29) 4,726,018 4,412,586 2,642,397 Income from energy services - 12,680,000 2,530,000 268,664,465 277,858,836 266,782,013 Expenses General government services (Note 29) 54,416,689 30,887,627 30,864,270 Protective services (Note 29) 65,875,615 62,110,298 58,723,677 Transportation services (Note 29) 50,741,172 53,437,703 50,897,731 Water and sewer services (Note 29) 56,521,340 55,832,386 49,843,579 Environmental health services (Note 29) 4,145,894 3,678,413 3,874,077 Environmental development services (Note 29) 24,940,724 28,944,223 20,276,287 Recreational and cultural services (Note 29) 13,037,267 14,944,691 13,092,364 269,678,701 249,835,341 227,571,985 Annual surplus (deficit) before capital contributions (1,014,236) 28,023,495 39,210,028 Government transfers for capital (Note 29) - 22,510,035 24,530,335 Net Assets from Saint John Trade & Convention Centre -- 264,573 & Others (Note 29) Annual surplus - 50,533,530 64,004,936 Accumulated surplus, beginning of year -1,011,365,373 947,360,436 Accumulated surplus, end of year -1,061,898,903 1,011,365,373 7 The City of Saint John Consolidated Statement of Changes in Net Asset As at December 31, 2025 20252024 $$ Annual surplus 50,533,530 64,004,936 Acquisition of tangible capital assets (Note 24) (61,716,892) (58,478,594) Loss on disposal of tangible capital assets 3,888,399 1,128,761 Transfer from Work in Progress (Note 24) 44,650 - Proceeds on sale of tangible capital assets 631,892 1,054,185 Amortization of tangible capital assets (Note 24) 47,837,602 44,532,711 Decrease (increase) in inventory 1,268,179 (465,669) (Increase) decrease in prepaid expenses (51,827) 949,624 Decrease in net debt 42,435,534 52,725,954 Net debt, beginning of year (6,077,208) (58,803,162) Net asset (debt), end of year 36,358,326 (6,077,208) 8 The City of Saint John Consolidated Statement of Cash Flow As at December 31, 2025 20252024 $$ Operating transactions Annual surplus 50,533,530 64,004,936 Items not involving cash Amortization of tangible capital assets (Note 24) 47,837,602 44,532,711 Loss on disposal of tangible capital assets 3,888,399 1,128,761 Transfer from Work in Progress (Note 24) 44,650 - Income from energy services (Note 8) (12,680,000) (2,530,000) Change in non-cash assets and liabilities Accounts receivable 14,259,907 (12,297,620) Inventory 1,268,179 (465,670) Prepaid expenses (51,827) 949,624 Accounts payable and accrued liabilities 10,695,788 8,032,153 Deferred revenue 632,620 1,940,221 Deferred government transfers (5,796,741) (1,178,762) Other post-employment liabilities (17,450,900) (17,325,400) Asset retirement obligation liabilities (Note 20) (792,018) 229,907 92,389,190 87,020,863 Capital transactions Acquisitions of tangible capital assets (Note 24) (61,716,892) (58,478,594) Proceeds on the sale of tangible capital assets 631,892 1,054,185 (61,085,000) (57,424,409) Financing transactions Repayment of long-term debt (20,392,000) (22,318,740) Proceeds from long-term debt - 9,000,000 (20,392,000) (13,318,740) Investing transactions Purchase of investments (256,753) (230,588) Proceeds from note receivable 2,500,000 2,500,000 2,243,247 2,269,412 Increase in cash and cash equivalents 13,155,437 18,547,125 Cash and cash equivalents, beginning of year 143,574,545 125,027,420 Cash and cash equivalents, end of year 156,729,982 143,574,545 9 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 1.Purpose of the Organization TheCityofSaintJohn(the"City)wasincorporatedbyroyalcharterin1785.Asamunicipality,theCityisexemptfromincometaxesunder Section149(1)(c)oftheCanadianIncomeTaxAct.TheCityhasthefollowingvisionstatement:"Weupliftallcitizens,raisingourcommunity tonewheights.Togetherwewillcontinuetofostergrowth,inclusion,anddiversity,whilestrengtheningourfoundationofqualityservices and accountability, to help Saint Johners thrive. " 2.Summary of Significant Accounting Policies TheconsolidatedfinancialstatementsoftheCityaretherepresentationsoftheCity'smanagementpreparedinaccordancewithPublic SectorAccountingStandards("PSAS")asrecommendedbytheCharteredProfessionalAccountantsofCanadaPublicSectorAccounting Board ("PSAB"). Significant aspects of the accounting policies adopted by the City are as follows: Reporting Entity Theconsolidatedfinancialstatementsreflecttheassets,liabilities,revenues,expenditures,remeasurementgainsandlosses,accumulated surplusandchangesinnetdebtandcashflowsofthereportingentity.Thereportingentityiscomprisedofallorganizationsandenterprises accountablefortheadministrationoftheiraffairsandresourcestotheCityandwhichareownedorcontrolledbytheCity. Interdepartmental and organization transactions and balances are eliminated. The entities included in the consolidated financial statements, having the same year end as the City, are as follows: 1. The City of Saint John General Operating Fund 2. The City of Saint John Capital and Loan Fund 3. The City of Saint John Water and Sewerage Utility Operating Fund 4. The City of Saint John Water and Sewerage Utility Capital and Loan Fund 5. Saint John Transit Commission 6. Harbour Station Commission 7. Saint John Aquatic Center Commission 8. The City of Saint John Trade and Convention Centre 9. Power Commission of the City of Saint John 10. Lord Beaverbrook Rink at Saint John Inc. 11. Saint John Police Commission 12. Saint John Free Public Library 13. Saint John Industrial Parks (2024) Ltd. Investment in Energy Services TheCity'sinvestmentinSaintJohnEnergyisaccountedforonamodifiedequitybasis,consistentwithgenerallyacceptedaccounting principlesasrecommendedbyPSAS.Underthemodifiedequitybasisofaccounting,thebusinessenterprise'saccountingprinciplesarenot adjustedtoconformwiththoseoftheCityandinter-organizationaltransactionsandbalancesarenoteliminated.TheCityrecognizesits equityinterestintheannualincomeorlossofSaintJohnEnergyinitsconsolidatedstatementofoperationswithacorrespondingincrease or decrease in its investment asset account. Budget ThebudgetfigurescontainedinthesefinancialstatementswereapprovedbyCouncilonDecember9,2024andtheMinisterofLocal Government on January 8, 2025. Revenue Recognition Unrestrictedrevenueandothersourcesofrevenuearerecordedonanaccrualbasisandisrecognizedwhencollectionisreasonably assured.Restrictedcontributionsarerecognizedasrevenueintheyearinwhichtherelatedexpensesareincurred.Otherrevenueis recordedwhenitisearned.Propertytaxes,whichareauthorizedbyCouncil,arerecognizedasrevenuesintheperiodforwhichthetaxes are levied. Building permit fees recognized as per PS3400. Financial Instruments TheCity'sfinancialinstrumentsincludescashandcashequivalents,restrictedcash,receivables,payablesandaccrualsandlongtermand other debts. Financial instruments are recorded at fair value on initial recognition and subsequently recorded at cost or amortized cost. Allfinancialassetsaretestedannuallyforimpairment.Whenfinancialassetsareimpaired,impairmentlossesarerecordedinthe consolidated statement of operations and accumulated surplus. 10 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 2.Summary of Significant Accounting Policies (Continued) Government Transfers Governmenttransfersarerecognizedintheconsolidatedfinancialstatementsasrevenuesintheyearwhenrelatedexpensesareincurred, thetransfersareauthorized,eligibilitycriteriahavebeenmet,excepttotheextentthattransferstipulationsgiverisetoanobligationthat meetsthedefinitionofaliabilityandreasonableestimatesoftheamountscanbemade.Transfersarerecognizedasdeferredrevenue when amounts have been received but not all stipulations have been met. Expense Recognition Expenses are recorded on an accrual basis. The cost of all goods consumed and services received during the year is expensed. Measurement Uncertainty ThepreparationoftheconsolidatedfinancialstatementsinaccordancewithCanadianPSASrequiresmanagementtomakeestimatesand assumptionsthataffectthereportedamountsofassetsandliabilitiesanddisclosureofcontingentassetsandliabilitiesatthedateofthe consolidatedfinancialstatementsandthereportedamountsofrevenuesandexpensesduringtheyear.Keycomponentsofthe consolidatedfinancialstatementsrequiringmanagementtomakeestimatesincludes:theusefullifeoftangiblecapitalassets,impairment oftangiblecapitalassets,assetretirementobligations,ratesforamortization,allowancefordoubtfulaccountsinrespectofreceivablesand estimatesforpensionliabilities.Estimatesarebasedonthebestinformationavailableatthetimeofpreparationofthefinancialstatements andarereviewedannuallytoreflectnewinformationasitbecomesavailable.Measurementuncertaintyexistsinthesefinancial statements. Actual results could materiality differ from those estimates. Cash and Cash Equivalents Cashandcashequivalentsincludecashonhand,balanceswithbanksandshort-termdepositswithoriginalmaturitiesofthreemonthsor less.Restrictedcashisnotavailableforuseingeneraloperationsandisnotavailableforwithdrawalasitislegallyrestrictedinaccordance with third-party special purpose agreements. Tangible Capital Assets Tangible capital assets are non-financial assets having a physical substance that: AreheldforusebytheCityintheproductionorsupplyofgoodsandservices,forrentalstoothers,foradministrative purposes or for the development, construction, maintenance or repair of other tangible assets; Have useful lives extending beyond one year and are intended to be used on a continual basis; Have a minimum value of $5,000 for individual assets; or $25,000 for pooled assets; and Are not intended for sale in the ordinary course of operations. Tangiblecapitalassetsarerecordedatcostwhichincludesallamountsthataredirectlyattributabletoacquisition,construction, developmentorbettermentoftheasset.Assetsthatfallbelowthethresholdamountsareexpensedforaccountingpurposes.Thecostof the tangible asset is amortized on a straight line over the estimated useful life as follows: Asset TypeYears Furniture and office equipment5-15 Information technology equipment and software1-15 LandN/A 5-100 Land improvements Leasehold improvementsterm of lease 3-25 Machinery and equipment Municipal buildings10-70 5-50 Transportation Motor vehicles and mobile equipment5-20 5-100 Water and wastewater networks 11 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 2.Summary of Significant Accounting Policies (Continued) In the year of acquisition and the year of disposal, one half of the annual amortization expense is recognized. Assets under construction are not amortized until the asset is available to productive use. Tangiblecapitalassetsarewrittendownwhenconditionsindicatethatthereisimpairmentinthevalueoftheassetsandthereductionin thevaluecanbeobjectivelyestimatedanditisexpectedtobepermanent.Thenetwrite-downsareaccountedforasexpensesinthe statement of operations. Donatedorcontributedassetsarerecordedatfairmarketvalueatthedateofconstructionordonation.Insomecircumstances, replacement cost may be used. TheCity’simplementationofPS3280AssetRetirementObligationshasresultedintherequirementformanagementtomakeestimates regardingtheusefullivesofaffectedtangiblecapitalassetsandtheexpectedretirementcosts,aswellasthetiminganddurationofthese retirement costs. Segmented Information TheCityprovidesawiderangeofservicestoitsresidents.Formanagementreportingpurposes,operationsandactivitiesareorganizedand reportedbyfunction.Thispresentationwascreatedforthepurposeofrecordingspecificactivitiestoattaincertainobjectivesin accordance with special regulations, restrictions or limitations. Municipal services are provided by service areas as follows: General Government Services ThissegmentisresponsiblefortheoverallgovernanceandfinancialadministrationoftheCity.ThisincludesCouncil functions, general and financial management, legal matters and compliance with legislation and civic relations. Protective Services Thissegmentisresponsiblefortheprovisionofpolicingservices,fireprotection,emergencymeasures,animalcontroland other protective measures. Transportation Services Thissegmentisresponsibleforcommonservices,roadandstreetmaintenance,streetlighting,trafficservices,parkingand other transportation related functions. Water and Sewer Services Thissegmentisresponsiblefortheprovisionofwaterandsewerservicesincludingthemaintenanceandoperationofthe underground networks, treatment plants, reservoirs and lagoons. Environmental Health Services This segment is responsible for the provision of waste collection and disposal. Environmental Development Services Thissegmentisresponsibleforplanningandzoning,communitydevelopment,tourismandothermunicipaldevelopment and promotion services. Recreation and Cultural Services Thissegmentisresponsibleforthemaintenanceandoperationofrecreationalandculturalfacilities,includingthe swimming pool, arenas, parks and playgrounds and other recreational and cultural facilities. Energy Services Thissegmentcomprisesanon-generatingdistributionutilitythatsupplieselectricitytomunicipal,residential,general serviceandindustrialcustomersthrough12interconnectionsupplypointsandsubstationslocatedintheCity.Italso provides street lighting, area lighting and water heater rental services. Inventory Inventoryconsistsmainlyofpartsandmaterialsandisvaluedatthelowerofcostandnetreplacementcostwithcostbeingdeterminedon the first in, first out basis. Post Employment Benefits TheCityrecognizesitsobligationsunderpost-employmentbenefitplansandtherelatedcosts,asdisclosedinNote14.Whereappropriate, the City has undertaken actuarial valuations. 12 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 2.Summary of Significant Accounting Policies (Continued) Asset Retirement Obligation Theaccountingstandardaddressesthereportingoflegalobligationsassociatedwiththeretirementofcertaintangiblecapitalassets.The standardwasadoptedonaprospectivebasisatthedateofadoption.Undertheprospectivemethod,thediscountrateandassumptions used on initial recognition are those as of the date of adoption of the standard. The prior years comparative have not been restated. TheCityhasrecognizedanassetretirementobligationrelatedtounderandabovegroundfuelstoragetanksandbuildingscontaining asbestos and other hazardous materials. Theliabilityisdiscountedusingapresentvaluecalculationandadjustedyearlyforaccretionexpense.Therecognitionofaliabilityresulted inanaccompanyingincreasetotherespectivetangiblecapitalassets.Theincreasetothetangiblecapitalassetisbeingamortizedovertheir remaining useful lives as outlined in note 2. 3.Bank Loan Payable TheCityhascreditfacilitieswiththeBankofNovaScotia.Accordingtothetermsandconditionsofthecommitmentlettersignedbetween theCityandtheBankofNovaScotia,theCitycanborrowupto$6milliontofundgeneraloperations.Theinterestrateforthecredit facilitiesistheBank'sprimelendingrateless0.5%perannumwithinterestpayablemonthly.AsatDecember31,2025,thebalanceofthe operating line of credit was $nil (2024 - $nil). AsprescribedintheLocalGovernanceAct,borrowingtofinanceGeneralFundoperationsislimitedto4%oftheCity'soperatingbudget. BorrowingtotemporarilyfinanceUtilityFundoperationsislimitedto50%oftheoperatingbudgetfortheyear.In2025,theCityhas complied with these limitations. 4.Cash and Cash Equivalents Cash and cash equivalents consists of the following: 2025 2024 $$ Unrestricted cash 125,317,319 106,698,661 Restricted cash Canada Community-Building Fund 23,726,095 26,538,226 CMHC Rapid Housing Initiative Fund 606,427 3,935,491 Deposits on contracts 3,171,334 2,877,488 CMHC Housing Accelerator Fund 2,978,601 1,798,652 Funding to support Public Transit and Housing 730,000 1,373,126 Public Safety Building Safer Communities Fund 141,246 333,615 Land Sub-division Fund 50,292 11,475 Airspace 2049 Fund 8,668 7,811 156,729,982 143,574,545 IncludedinthisamountarefundsinternallyrestrictedthrougharesolutiontoCommonCounciltosupportreservesasincludedinnote 23 for a total of $73,190,141 (2024 - $71,222,974) 13 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 5.Accounts Receivable Accounts receivable consist of the following: 2025 2024 $$ Water and sewer charges to ratepayers 9,927,944 23,550,521 Other receivables 19,579,126 20,354,175 Due from the Federal Government and its agencies (Note 6) 2,483,249 2,595,978 Due from the Province of New Brunswick (Note 7) 75,656 110,973 Allowance for doubtful accounts (2,425,818) (2,711,583) 29,640,157 43,900,064 6.Due from the Federal Government and its Agencies Amounts due from the Federal Government and its agencies consists of the following: 2025 2024 $$ Canada Revenue Agency HST receivable 2,483,249 2,595,978 2,483,249 2,595,978 7.Due from the Province of New Brunswick Amounts due from the Province of New Brunswick consists of the following: 2025 2024 $$ Department of Transportation 70,091 100,796 Other 5,565 10,177 75,656 110,973 8.Investment in Energy Services Change in equity Saint John Energy: 2025 2024 $$ Investment, beginning of year 90,647,000 88,117,000 Share of equity earnings 12,680,000 2,530,000 Investment, end of year 103,327,000 90,647,000 9.Note Receivable The note receivable from the Power Commission of the City of Saint John is as follows: 2025 2024 $$ Power Commission of the City of Saint John 12,500,000 15,000,000 Thenotereceivableisa10-yeartermloan,unsecured,bearinginterestatratesrangingfrom0.5%to1.8%,principalrepayableinannual installments of $2,500,000 and maturing on November 26, 2030. 10.Other Investments Other investments consist of the following: 2025 2024 $$ Other investments 1,401,360 1,144,607 InvestmentsoftheCityofSaintJohnareheldwiththeBankofNovaScotiawhichfallwithinthescopeoftheCity’sInvestmentPolicy.Itis thepolicyoftheCitytoinvestfundstoprovidetheoptimalblendofinvestmentreturnsandprincipalprotectionwhilemeetingtheCity’s daily cash flow and liquidity demands. 11.Accounts Payable and Accrued Liabilities Accounts payable and accrued liabilities consist of the following: 2025 2024 $$ Trade payables 35,774,624 31,298,175 Payroll 7,507,271 8,634,015 Deposits 3,171,334 2,877,488 Conferences and holdings 8,783,919 1,054,163 Interest payable 304,147 373,136 Due to Pension Fund - 297,353 Other- 153,205 157,972 55,388,090 44,692,302 5 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 12.Deferred Government Transfers Deferred government transfers consist of the following: 2025 2024 $$ Canada Community-Building Fund 23,726,095 26,538,226 CMHC Rapid Housing Initiative Fund 606,427 3,935,491 Funding to support Public Transit and Housing 730,000 1,373,126 CMHC Housing Accelerator Fund 2,978,601 1,798,652 Public Safety Building Safer Communities Fund 141,246 333,615 28,182,369 33,979,110 AspertheCanadaCommunityBuildingFundAgreement(formerlyGasTaxFunding),fundingreceivedaspartofthisfundingprogramis recordedasrevenueintheyearduringwhichrelatedexpendituresareincurred.TheCityalsoreceivedfundingfromtheFederaland ProvincialGovernmenttosupportpublictransitandhousing.Amountsthathavenotbeenspentarerecordedasdeferredgovernment transfers on the Consolidated Statement of Financial Position. 13.Long-Term Debt 2025 Interest RateTermAnnual Payment2025 2024 Year of Issue%(Years)$$$ New Brunswick Municipal Finance Corporation Debentures 20112.06015 200,000 1,200,000 1,400,000 20121.350 to 3.55015 767,000 1,529,000 2,296,000 20121.350 to 3.80020 425,000 2,975,000 3,400,000 20121.350 to 3.55015 300,000 600,000 900,000 20131.350 to 3.70015 687,000 2,056,000 2,743,000 20131.350 to 4.00020 550,000 4,400,000 4,950,000 20131.350 to 4.00020 360,000 4,680,000 5,040,000 20142.00020 500,000 4,500,000 5,000,000 20141.150 to 3.90015 707,000 2,823,000 3,530,000 20141.200 to 3.70015 267,000 1,063,000 1,330,000 20141.200 to 3.70020 200,000 1,800,000 2,000,000 20141.150 to 3.90015 27,000 103,000 130,000 20150.950 to 3.25015 500,000 2,500,000 3,000,000 20151.050 to 3.65015 133,000 670,000 803,000 20150.950 to 3.50020 175,000 1,750,000 1,925,000 20151.050 to 3.15010 175,000 - 175,000 20151.050 to 3.65015 67,000 330,000 397,000 20161.200 to 3.55015 300,000 1,800,000 2,100,000 20161.450 to 3.50015 400,000 2,400,000 2,800,000 20161.450 to 3.75020 200,000 2,200,000 2,400,000 20161.200 to 2.95010 400,000 400,000 800,000 20161.200 to 3.55015 67,000 397,000 464,000 20171.200 to 3.30015 333,000 2,336,000 2,669,000 20171.650 to 3.20015 133,000 936,000 1,069,000 20171.650 to 3.40030 1,500,000 33,000,000 34,500,000 20171.650 to 2.90010 350,000 700,000 1,050,000 20171.650 to 3.20015 67,000 464,000 531,000 20182.550 to 3.55015 700,000 5,600,000 6,300,000 20182.100 to 3.45010 125,000 375,000 500,000 20193.41010 143,000 570,000 713,000 20192.050 to 2.85010 75,000 300,000 375,000 20191.950 to 2.80015 493,000 4,442,000 4,935,000 15 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 13.Long-Term Debt (Continued) 2025 Interest RateTermAnnual Payment2025 2024 Year of Issue%(Years)$$$ 20191.950 to 2.45010 250,000 1,000,000 1,250,000 20200.900 to 1.5005 1,000,000 - 1,000,000 20200.500 to 2.30015 467,000 4,665,000 5,132,000 20200.500 to 1.80010 2,500,000 12,500,000 15,000,000 20200.900 to 2.05010 250,000 1,250,000 1,500,000 20210.300 to 2.30010 2,466,000 7,466,000 9,932,000 20210.855 to 2.76215 700,000 4,700,000 5,400,000 20210.855 to 2.37810 350,000 2,100,000 2,450,000 20224.700 to 4.70910 483,000 5,801,000 6,284,000 20243.360 to 4.33215 600,000 8,400,000 9,000,000 Total Debentures 20,392,000 136,781,000 157,173,000 Theaggregateamountofprincipalrepaymentsrequiredineachofthenextfiveyearsandthereaftertomeetprovisionsoflong-termdebt, assuming maturity debt is renewed at terms comparable to those currently in effect, is as follows: $ 2026 19,217,000 2027 17,046,000 2028 15,629,000 2029 14,805,000 2030 13,953,000 Thereafter 56,131,000 136,781,000 16 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 14.Post Employment Benefits and Compensated Absences City of Saint John Shared Risk Plan TheCityofSaintJohnPensionPlan(FormerCSJPlan)wasconvertedtotheCityofSaintJohnSharedRiskPlan("CSJSRP")effectiveJanuary 1,2013(theconversiondate).ThepurposeoftheCSJSRPistoprovidesecurebenefitstomembersoftheplanwithoutanabsolute guaranteebutwithariskfocusedmanagementapproachdeliveringahighdegreeofcertaintythatbasebenefitscanbemetinthevast majorityofpotentialfutureeconomicscenarios.Theseobjectivesareachievedthroughthedevelopmentofariskmanagementframework thatadherestothelegislatedcriteria,resultsinalowprobabilitythatbasebenefitswillbereduced,andsetsoutthespecificstepstobe takenshouldthePlan'sfundedratiofallbelow,orexceed,specifiedthresholds.Thesesteps,whenthePlanisunderfunded,includethe cessationofindexationofbenefits,increasingcontributionrates(toapredeterminedmaximum),reducingcertainancillarybenefits,and ultimatelyreducingbasebenefits.WhenthePlanhasexcessfunding,previousbenefitreductionscanbereversed,indexingisfully implemented,andvariousotherpotentialincreasescanbeimplemented,includingadecreaseincontributionrates(toapredetermined maximum). SharedriskplansarelegislatedundertheprovincialPensionBenefitsAct(PBA)whichcontainsanumberofrequirementsthatmustbemet inordertoqualifyforregistrationbytheOfficeoftheSuperintendentofPensions.ThePlanisalsosubjecttotheIncomeTaxAct.ThePlan isadministeredbyaBoardofTrusteeswhichincludes4individualsnominatedbytheCityand4individualsnominatedbyeachofthefour unions. TheassetsofthePlanareheldbyRBCInvestorandTreasuryServiceswhichactsascustodianofthePlan.TheassetsofthePlanare managedbyvariousinvestmentmanagerswhohavediscretionaryinvestmentauthoritywithintheinvestmentmandatesgiventothemby the Plan's Board of Trustees. The performance of the Plan relative to its benchmarks is measured on a regular basis. Forservicepriortotheconversiondate,thePlanprovidesforpensionsattherateof2%peryearofservicetimestheaverageofthethree consecutiveyearsofservicehavingthehighestsalaryatthetimeofconversion.Forserviceaftertheconversiondate,thepensionaccrual foreachyearofserviceis1.8%timesthesalary(excludingovertimepay)earnedduringtherelevantyeartoacertainmaximumsalaryof $155,499 that is indexed every year. Pensionbenefitsaccruedbeforetheconversiondatearepayablewithoutreductionwhenthemember’sageandserviceequalatleast85 (oratage65,ifearlier).Pensionbenefitsaccruedaftertheconversiondatearepayablewithoutreductionatage60foremployeesinthe InternationalAssociationofFireFightersandSaintJohnPoliceAssociationandatage65forallotheremployees.Pensionbenefitscanbe paid as early as age 55 with a reduction. Sharedriskplansextinguishallaccruedrightstoautomaticfutureindexing.Theseautomaticadjustmentshavebeenreplacedbyindexingas permitted by the Plan's funding policy, which is contingent on the SRP performance. Theinitialrequiredemployeecontributionsareequalto12%ofearningsforemployeesintheInternationalAssociationofFireFightersand SaintJohnPoliceAssociationandemployeecontributionsof9%ofearningsforotheremployees.Membersinpublicsafetyoccupations whoacceptanon-unionpositionwillhaveaone-timeopportunitytoelecttocontinuetocontributeatthehigherrate.TheCitymakes initialrequiredemployercontributionsof15.2%and11.4%ofearnings(representingabout126.7%ofemployeecontributionrates)foreach ofthesegroups.TheinitialcontributionratesforboththeemployeesandtheCityissubjecttochangeasaresultofthetriggering mechanismandlimitationsimposedbythePlan’sfundingpolicy.Also,sinceApril1,2013,theCityisrequiredtomakecontributionsof17% ofearningsforaperiodof15years,orwhenthePlanachievesaminimumfundedratioof150%(ascalculatedunderthelegislation)usinga 15-yearopengroupmethod(nolessthan10yearsofpaymentmustbemade).TheCityhasnootherfinancialobligationotherthanto make contributions at the above rates, and within the limits found under the Plan’s funding policy. Intheeventofawind-upofthePlaninthefiveyearsfollowingtheconversiondate,thePlanwouldbewoundupundertheprovisionsof theFormerCSJPlan.AllassumptionsrelatingtotheCSJSRPhavebeenmadeonthebasisofanon-goingPlanandtheCitydoesnotforesee a wind-up of the Plan. 17 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 14.Post Employment Benefits and Compensated Absences (Continued) City of Saint John Shared Risk Plan (Continued) Actuarial Valuations ActuarialvaluationsforthePlanareconductedannuallybytheBoardofTrusteesforregulatorypurposes.Inturn,theactuarialvaluations foraccountingpurposesarebasedonthesefigures(withadjustments).ThemostrecentactuarialvaluationwaspreparedasatJanuary1, 2025.Theactuarialvaluationsforaccountingpurposesarebasedonanumberofassumptionsaboutfutureevents,suchasinflationrates, interestrates,salaryincreases,employeeturnoverandmortality.TheaccruedbenefitobligationasatDecember31,2024andcurrent periodbenefitcostforthefollowingyeararebasedonanactuarialvaluationconductedasatDecember31,2024.Theaccruedbenefit obligationasatDecember31,2024andcurrentperiodbenefitcostforthefollowingyeararebasedonanactuarialvaluationconductedas atDecember31,2024andextrapolatedtoDecember31,2025,usingassumptionseffectiveforDecember31,2024.Theassumptionsused reflectmanagement'sbestestimates.Thefollowingsummarizesthemajorassumptionsintheaccountingvaluationsandextrapolationsat the various effective dates: 2025 2024 Discount rate 6.10%6.10% Inflation rate 2.10%2.10% Salary increase 2.85%2.85% MortalityCPM - 2014 mortality table with adjustments factors The Expected Average Remaining Service Life (EARSL) is 12 years. During the year, the City made pension contributions of $20,600,000 (2024 - $20,000,000). ThefollowingtablereflectstheCity'sshareoftheaccruedbenefitliability,whichequalstothefullportionoftheAccumulatedBenefit Obligation("ABO")relatedtothetemporarycontributionsand55.9%oftheremainingportionoftheABOnetofPlanassetsbecause fundingcontributionsaresharedat55.9%bytheCityand44.1%byemployees,beforetakingintoaccounttheadditionaltemporary contribution of 17% of earnings. 2025 2024 $$ City share of accrued benefit liability, beginning of year 3,200,000 20,200,000 City share of current period benefit cost 7,300,000 5,900,000 Interest cost (100,000) 900,000 Less: City contributions (20,600,000) (20,000,000) Actuarial (gain) loss (9,500,000) (3,800,000) City share of accrued benefit liability, end of year (19,700,000) 3,200,000 Unamortized actuarial gain 28,400,000 23,400,000 Pension liability, end of year 8,700,000 26,600,000 The following table reflects the City share of pension related expenses: 2025 2024 $$ Current period benefit cost 7,300,000 5,900,000 Interest cost (100,000) 900,000 Amortization of City share of actuarial gain (4,500,000) (4,100,000) Total expense related to Pension 2,700,000 2,700,000 18 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 14.Post Employment Benefits and Compensated Absences (Continued) Other Employee Future Benefits TheCityprovidesforthepaymentofretirementallowancestoretiringemployeesinaccordancewiththetermsofthevariouscollective agreementsandMunicipalpolicy.Theretirementallowanceisbasedonthemember’sfinalannualsalaryandyearsofserviceatretirement. EmployeesuponretirementfromtheCityareentitledtoaretirementallowanceequaltoonemonth’spay,toamaximumofsixmonths,for everyfiveyearsofservice.Theprogramhasbeenamendedtoprovidecertainemployeeswithapayoutoptionpriortoretirement. Accepting the early payout option eliminates further accumulation of retirement allowance entitlement for those employees. TheCityalsoprovidesforemployeesickleave.Unusedsickleaveaccumulatestoamaximumnumberofhourswhichvariesbyemployment agreement.Underthisprogram,employeesarenotentitledtoacashpaymentinlieuofsickleavewhentheyleavetheCity’semployment except as described below with respect to the retirement both outside workers (local 18) and firefighters (local 771). Uponretirement,membersofLocal18and771willbeeligibletoreceive10%oftheirregularrateofpayforaccumulatedsickleavecredits in excess of 1,760 hours or 2,280 hours respectively. ForemployeesoftheCityofSaintJohnFiredepartment,whoareunabletoworkduetoheartdiseaseorpermanentinjurytothelungs,the CitypayscertainamountstodisabledfirefightersortheirsurvivorspouseasaresultoftheprovisionsofanActoftheLegislature,knownas the Act respecting the Saint John Firefighter's Association. AsatJanuary1,2013,theCity’spensionplanwasconvertedtoasharedriskmodel.Aspartoftheconversion,theCityassumedthe obligationforpayingexistingdisabilitypensions,thathadbeengrantedundertheoldplan,untildisabledmembersreachtheageof65.On agoforwardbasis,disabilitycoverageisnowprovidedforemployeesthroughalongtermdisabilityprogramadministeredbyaninsurance carrier. FinallytherearespecificagreementsthatobligatetheCitytopaytopuppensionstocertainindividuals.Duringtheyear,theCitymade payments of $64,200 (2024 - $64,100) related thereto. Valuation Techniques and Assumptions Actuarialvaluationsoftheabovebenefitsarecompletedforaccountingpurposesusingtheprojectedbenefitmethodproratedonservices. Thelastactuarialvaluationofthepost-employmentbenefitplanswasconductedasatDecember31,2025.Previoustothat,anactuarial valuation was performed as at December 31, 2024. Theabovebenefitplansareunfundedandassuch,therearenoapplicableassets.Benefitsarepaidoutofgeneralrevenueastheybecome due. Areconciliationoftheaccruedbenefitobligationfortheseplans,alongwiththemainassumptionsusedfordisclosureandexpense calculations are as follows: 2025 2024 $$ Accrued benefit obligation, beginning of year 17,544,500 18,788,600 Current period benefit cost 1,031,200 1,007,900 Benefit payments (1,524,500) (2,105,700) Interest cost 769,800 779,000 Actuarial (gain) loss (740,800) (925,300) Other employee future benefits, end of year 17,080,200 17,544,500 2025 2024 $$ Main assumptions used for these plans: Discount rate 4.67%4.45% Salary increase 3.00%3.00% EARSL Range 1 to 24 1 to 24 19 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 14.Post Employment Benefits and Compensated Absences (Continued) Thesebenefitplansrequirenocontributionsfromemployees.ThebenefitliabilityasatDecember31,2025includesthefollowing components: 2025 2024 $$ Accrued Benefit Obligation (Carrying Value) Retirement allowances 4,468,300 4,413,300 Sick leave 6,706,000 6,630,000 Heart and lung pension 3,098,200 3,155,500 Disability benefits 1,256,600 1,770,000 Contractual top up agreements 659,900 705,000 Sick leave - Saint John Transit Commission 891,200 870,700 17,080,200 17,544,500 Unamortized actuarial gain 1,126,900 213,500 18,207,100 17,758,000 TheunamortizedactuariallosseswillbeamortizedovertheEARSLoftherelatedemployeegroupsstartinginthenextfiscalyear.EARSLis determined separately for each benefit program. The total expense related to other employee benefits described above includes the following components: 2025 2024 $$ Current period benefit cost 1,031,200 1,007,900 Amortization of actuarial loss 193,400 293,400 1,224,600 1,301,300 Other employee benefit interest expense 769,800 779,000 Total expense related to other employee future benefits 1,994,400 2,080,300 15.Contingencies TheCityis,fromtimetotime,subjecttovariousinvestigations,claims,andlegalproceedingscoveringmattersthatariseintheordinary courseofitsbusinessactivities.TheoutcomeofalltheproceedingsandtheclaimsagainsttheCityissubjecttofutureresolutionandthe uncertaintiesoflitigation.Managementbelievesthatanyliabilitythatmayultimatelyresultfromtheresolutionofthesematterswillnot have a material adverse effect on the consolidated financial position or operating results of the City. 16.Commitments Fundy Regional Service Commission During2022,theFundyRegionalServiceCommissionrolewasexpandedbytheProvincialGovernmentthroughanamendmentofthe "RegionalServiceDeliveryAct".UndertheamendedprovisionsoftheAct,theRegionalServiceCommissionhastheauthoritytodetermine theannualamountoftotalmunicipalcontributionstobemadetowardseconomicdevelopment,tourismpromotion,community development,regionaltransportation,recreationinfrastructurecostsharingandadditionalsocialfocus.Theoperationoffiveregional facilities:SaintJohnAquaticCentreCommission,TDStationCommission,SaintJohnTradeandConventionCentre,ImperialTheatreand SaintJohnArtsCentrearenowundertheprovisionsoftheRegionalServiceDeliveryAct,theCity’scontributionisitsproratashareofthe RegionalFacilitiesCommission’soperatingbudgetandcapitalbudgetisbasedon50%ofthetaxbasesand50%ofpopulationbasedonthe participatingmunicipalitiesoftheTownofQuispamsis,theTownofRothesay,theTownofGrandBay-Westfield,TownofHampton,Local ServiceDistrictsofFundy-St.MartinsandFundyRuralDistrictandtheCityofSaintJohn.TheCity'scontributionis55.66%in2025(2024- 55.91%). TheCityisalsoliableforaproratashareofthedebenturesandotherlong-termdebtissuedonbehalfoftheCommission.Thetotalofsuch debt outstanding at December 31, 2025 amounted to $1,285,000 (2024 – $2,258,000). 20 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 17.Water and Sewer Fund Surplus TheLocalGovernanceActrequiresWaterandSewerFundsurplus/deficitamountstobeabsorbedintooneormoreoffourOperating Budgets commencing with the second ensuing year; the balance of the surplus/deficit at the end of the year consists of: 2025 2024 $$ 2025 Deficit (975,287) - 2024 Surplus 2,592,951 2,592,951 2023 Surplus 230,860 307,813 2022 Surplus 133,142 199,713 2021 Surplus 379,074 758,148 2020 Surplus - 242,260 2,360,740 4,100,885 18.Water Cost Transfer TheCity’swatercosttransferforfireprotectioniswithinthemaximumallowablebyRegulation2020-52undertheLocalGovernanceAct, based upon the applicable percentage of water system expenditures for the population. 19.Funds Held in Trust FundsadministeredbytheCityforthebenefitofexternalpartiesarenotincludedintheconsolidatedfinancialstatements.Theamount administered as at December 31, 2025 was $554,988 (2024 - $547,131). 20.Asset Retirement Obligation Theestimatedliabilityisthepresentvalueoffuturecashflowassociatedwiththeassetretirementcostsdiscountedusingadiscountingrate of 4.67% for the year 2025. The City asset retirement obligation consists of obligations as follows: TheCityhasbuildingsthatwerebuiltbefore1990thatmayhaveasbestosandfuelstoragetanks.Thecostofremovaloftheasbestosand fuel storage tank remediation have been recognized under PS 3280 - Asset Retirement Obligation. The transition and recognition of asset retirement obligation involved an accompanying increase to the Capital Assets. Asset Retirement Obligation 2025 2024 $$ Gross undiscounted expenditure 24,332,214 24,332,214 16,371,329 16,141,422 Opening balance Accretion expenses 155,813 229,907 Remeasurement adjustment (947,831) - 15,579,311 16,371,329 Closing balance 21.Financial Instruments Risk Management The City has exposure to the following risks from its use of financial instruments: credit risk, liquidity risk and interest rate risk. Credit Risk Creditriskistheriskoffinanciallosstothecityifacustomerorcounterpartytoafinancialinstrumentfailstomeetitscontractual obligation.SuchrisksaremainlyfromcertainfinancialassetsheldbytheCityconsistingofcashandcashequivalents,ristrictedcash, receivablesandloansandadvancesgiven.TheCityisexposedtothecreditriskonitsreceivablesandloansgivenasdisclosedinnotes5and 9.Allowancesfordoubtfulaccountsareprovidedforpotentiallossesthathavebeenincurredatthereportingdate.Theamountsdisclosed ontheconsolidatedstatementoffinancialpositionarenetoftheseallowancesfordoubtfuldebt.Managementbelievesitsallowancefor doubtful accounts is sufficient on its receivable and has a collection recovery procedure in place to mitigate credit risk. Liquidity Risk LiquidityriskistheriskthattheCitywillnotbeabletomeetitsfinancialobligationsastheybecomedue.TheCity'sobjectiveistohave sufficientliquiditytomeettheseliabilitieswhendue.TheCitymonitorsitscashbalanceandcashflowsgeneratedfromoperationstomeet its liquidity requirements. 21 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 21.Financial Instruments (Continued) Liquidity Risk (Continued) Theliquidityriskarisesfromthefinancialliabilitiesconsistingofpayablesandaccrualsasdisclosedinnote11andlongtermdebtas disclosed in note 13. Interest Rate Risk Interestrateriskistheriskthatthefairvalueorfuturecashflowofitsfinancialinstrumentwillfluctuatebecauseofchangesinthemarket interestrates.Thelongtermdebtisatfixedinterestrateandarepaidbasedoncontractualrequirementsofthedebtinstrument.Achange inmarketinterestdoesnotimpactcashflowstoservicedebt.Theoperatinglineofcreditissubjecttofloatinginterestrate.Achangeinthe variable rate can impact cashflow to service the debt when such debt is outstanding. 22.Reclassification Prioryearamountshavebeenreclassifiedtoconformtothecurrentyearfinancialstatementpresentationwhereverrequired.These reclassifications have no impact on previous year reported surplus. 22 250,000 6,100,0001,054,1852,197,9828,163,681 48,716,69954,816,69914,743,03112,424,75130,669,94922,506,26848,716,70671,222,974 2024 Total 580,000631,894 5,325,0007,156,3097,601,1942,481,2441,967,167 71,222,97476,547,97418,450,64116,483,47471,222,97473,190,141 2025 Total Date of Maturity Monday, December 12, 2033Tuesday, December 12, 2028 -- 631,894 3,228,476 4,800,0007,036,3851,273,4458,941,7245,713,248 38,134,24633,334,24636,562,722 33,334,246 Reserve General Capital --- 564,809580,000265,209729,057680,961 8,388,5701,410,0188,388,5709,069,531 8,388,570 General Reserve Operating Interest Rate 4.511%-5.245%4.511%-5.245% ---- 23 62,115 665,584 1,964,6845,353,4695,415,5844,750,0001,964,6842,630,268 1,964,684 Water & Sewer Operating Reserve --- 525,000 525,000880,475 4,800,000 1,802,8402,683,3155,291,169 (2,607,854) 28,060,47427,535,47424,927,620 27,535,474 Water & Sewer Capital Reserve Principle Amount Statement of Reserves Assets CashInvestments (a)Accumulated surplus Revenue Transfers from Water and Sewerage Utility OperatingTransfer between Operating and CapitalTransfers from General Operating FundProceeds on Sale of AssetsInterestTotal RevenuesExpendituresAnnual surplus (deficit)Balance, beginning of year Balance, end of year(a) Included in the assets of General and Water and Sewer Capital Reserves is $5,325,000 of interfund debentures.Name of Investment Interfund Debenture - IFD 1 2023Interfund Debenture - IFD 2 2023 23. The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 24 Statement of Reserves (Continued)Council Resolutions regarding transfers to and from reserves Common Council Meeting – December 15th, 2025 – Open Session Moved by Councillor Sullivan, seconded by Councillor Killen:RESOLVED that as recommended by the Finance Committee in the submitted report M&C 2025-301:2025 Reserve Transfers, Common Council approve the transfer of funds to and from the following reserves: General Operating Reserves$564,809 from the General Operating Fund to the General Operating Reserve$729,057 from the General Operating Reserve to the General Operating Fund$580,000 from the General Capital Reserve to the General Operating Reserve General Capital Reserves$7,668,279 from the General Operating Fund to the General Capital Reserve$5,133,248 from the General Capital Reserve to the General Capital Fund$580,000 from the General Capital Reserve to the General Operating Reserve Utility Operating Reserves$603,469 from the Utility Operating Fund to the Utility Operating Reserve(Industrial Rate Stabilization)$4,750,000 from the Utility Operating Reserve to the Utility Operating Fund$4,750,000 from the Utility Capital Reserve to the Utility Operating Reserve Utility Capital Reserves$1,802,839 from the Utility Operating Fund to the Utility Fund Capital Reserve$541,169 from the Utility Capital Reserve to the Utility Capital Fund $4,750,000 from the Utility Capital Reserve to the Utility Operating Reserve 23. The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 $ 61,716,89214,939,98747,837,60210,375,044 840,502,553877,965,111582,948,780438,974,135 2025 Total 1,853,111,1201,899,888,025 1,021,922,9141,021,922,914 - -- $ 947,831 Asset 4,706,4952,033,1986,739,6936,865,281 6,865,281 6,865,281 14,552,80513,604,974 Obligation Retirement ---- 44,650 $ 5,600,7925,366,812 (7,745,811) 18,758,06510,967,604 10,967,60410,967,604 Assets under Construction - $ 1,830,3371,190,510 21,540,67117,829,431 Water & Networks 789,921,340809,631,674359,385,430376,024,351433,607,323 433,607,323433,607,323 Wastewater - $ 6,459,3875,321,366 32,080,44912,483,202 489,453,905515,074,967268,747,179275,909,015239,165,952 239,165,952239,165,952 Transportation - $ 1,828,0491,665,1701,813,3151,600,7236,051,418 6,051,4186,051,418 23,511,77623,674,65517,410,64517,623,237 Equipment Machinery & - $ 25 6,059,7021,737,4634,169,5261,690,839 60,765,25265,087,49137,675,21240,153,89924,933,592 24,933,59224,933,592 Vehicles - $ 713,111530,914 4,815,6636,312,489 Buildings 229,539,634233,642,186125,431,662131,213,237102,428,949 102,428,949102,428,949 ---- 325,843 $ 5,802,7605,802,7603,134,2863,460,1292,342,631 2,342,6312,342,631 Leasehold Improvements - 40,69240,692 $ Land 3,055,0692,870,597 67,510,35870,524,73524,011,64426,841,54943,683,186 43,683,186 43,683,186 Improvements ----- 83,100 $ Land 1,501,346 153,295,225151,876,979151,876,979 151,876,979 151,876,979 on disposal Tangible Capital Assets COSTACCUMULATED AMORTIZATIONNET BOOK VALUE OF TANGIBLE CAPITAL ASSETS Consists of: Balance, beginning of yearAdditions and transfersDisposalsBalance, end of yearBalance, beginning of yearAmortization for the yearAccumulated amortization Balance, end of yearGeneral Fund assetsWater and Wastewater assets 24. The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 $ 58,478,59419,494,11044,532,71117,311,167 813,281,009840,502,553576,705,845435,902,721 2024 Total 1,814,126,6361,853,111,1201,012,608,5661,012,608,566 ---- $ Asset 3,537,7381,168,7574,706,4959,846,3109,846,3109,846,310 14,552,80514,552,805 Obligation Retirement ----- $ 5,366,812 32,043,24018,758,06518,758,06513,391,25318,758,065 (13,285,175) Assets under Construction - $ 893,777 1,105,977 10,867,45917,350,448 Water & Networks 780,159,858789,921,340342,928,759359,385,430430,535,910430,535,910430,535,910 Wastewater - $ 4,369,7983,909,415 13,953,32112,078,280 479,870,382489,453,905260,578,314268,747,179220,706,726220,706,726220,706,726 Transportation - $ 719,109398,549 1,659,2871,712,3706,101,1316,101,1316,101,131 22,571,59823,511,77616,096,82417,410,645 Equipment Machinery & - $ 26 5,670,2621,605,7803,844,3481,598,377 56,700,77060,765,25235,429,24137,675,21223,090,04023,090,04023,090,040 Vehicles - $ 9,307,5395,805,4348,422,685 17,092,041 Buildings 221,755,132229,539,634128,048,913125,431,662104,107,972104,107,972104,107,972 ---- 325,843 $ 5,802,7605,802,7602,808,4433,134,2862,668,4742,668,4742,668,474 Leasehold Improvements - $ Land 2,385,9082,247,2312,088,364 52,353,90017,542,36667,510,35823,852,77724,011,64443,498,71443,498,71443,498,714 Improvements ------ $ Land 4,979,033 148,316,192153,295,225153,295,225153,295,225153,295,225 on disposal Tangible Capital Assets (Continued) COSTACCUMULATED AMORTIZATION NET BOOK VALUE OF TANGIBLE CAPITAL ASSETS Consists of: Balance, beginning of yearAdditions and transfersDisposalsBalance, end of yearBalance, beginning of yearAmortization for the yearAccumulated amortization Balance, end of yearGeneral Fund assetsWater and Wastewater assets 24. The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 $ 1,009,6403,966,4332,530,000 2,642,3974,671,238 2024 13,773,57828,601,12663,679,36278,162,04344,532,71139,210,027 150,579,477266,782,013100,205,993227,571,985 Consolidated $ 1,006,9971,824,6524,412,586 4,413,408 2025 12,680,000 12,803,70038,088,92950,054,20190,559,20247,837,60328,023,495 156,987,772277,858,836107,025,128249,835,341 Consolidated ------------ $ Energy Services 12,680,00012,680,00012,680,000 ------ 181 $ 1,683,3431,275,0932,958,4366,069,7045,990,2102,884,596 14,944,691 Cultural Services (11,986,255) Recreational & ------ 20,626 $ 213,788 2,590,1039,052,805 (6,619,221) 19,734,89922,325,00219,657,00428,944,223 Services Development Environmental ----------- $ 1,144,3432,534,0703,678,413 (3,678,413) Environmental Health Services 27 ------- $ 1,853,914 (5,778,185) 50,054,20150,054,20110,874,46625,274,57517,829,43155,832,386 Services Water & Sewer ------ $ 358,237374,794 10,338,95710,697,19422,498,56215,881,94014,682,40753,437,703 Services (42,740,509) Transportation -------- 22,133 $ 2,410,6172,432,7508,288,772 Services 53,821,526 62,110,298 (59,677,548) Protective -- $ 167,019 1,006,9973,921,1131,824,6523,563,7222,163,893 General Services 12,803,700 12,932,631 12,227,381 30,887,627 156,987,772176,711,253145,823,626 Government Segment Disclosure REVENUESEXPENSESSURPLUS (DEFICIT) FOR THE YEAR Property taxesUnconditional grantFundy regional service grantOther revenue from own sourcesMiscellaneous revenueWater & sewer revenueIncome from energy servicesContributions from othersSalaries and benefitsGoods and servicesAmortization of tangible assetsInterest and bank charges 25. The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 ) 00 00 -- 92 ,, 09 01 73 $ , 4 1,037,716 Total ((8,583,454) 59,116,98555,234,73250,533,530 (13,400,000) (47,837,602) 0 0 7 7 - - - - - - - - - 9 9 ,, 6 6 4 4 5 5 $ Entities Controlled ----------- $ Trust Funds ) 0 0 ---- 0 , 5 2 $ 7 , 5 Fund 6,466,603 ((8,601,260)(9,142,429) 15,609,03223,013,262 (17,829,431) Water & Sewer Capital ) 82 55 - - - - 89 ,, 46 61 $ 72 898,881 , (975,285) 25,725,0008,601,260 Fund ( Sewer 12,874,166 11, Water & Operating --- - $ 8,657,316 (6,800,000) 39,189,855 (39,189,855) (30,008,171)(11,039,000) General Capital Fund 28 - 700,900 272,858 $ 4,746,4126,800,000 Fund (4,319,200) 26,874,664 25,781,10611,039,000 31,621,076 (13,400,000) General Operating Consolidated Schedule of Accumulated Surplus (Deficit) Reconciliation Second previous year's surplusPSAS adjusting entriesAmortization expenseLong-term debt principal repaymentPost employment adjustmentPension expenseAmortization of actuarial gainCapital from operating 26. 2025 annual Fund surplus (deficit), per Local Governance Act Adjustments to 2025 annual surplus (deficit) for funding requirements Total adjustments to 2025 annual surplus (deficit)2025 annual surplus (deficit), per PSAS The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 57,813 (85,679) $ 143,492154,056 $ 1,719,3911,565,335 2024 (7,753,157) 13,195,33315,084,60222,837,759 Centre 121,749,629108,554,296 Trade and Saint John The City of Convention Consolidated 149,477392,289 546,970 $ $ (242,812)(836,690) 2,170,3183,007,008 2025 11,463,21725,806,49825,259,528 132,972,447121,509,230 Saint John Consolidated Commission Aquatic Center 25,667 $ $ 605,076 917,468 Ltd (573,241) 2,253,8211,648,7452,533,5523,106,7931,892,4091,866,7422,097,355 (1,179,887) Station Harbour Industrial Saint John Parks (2024) Commission -- 16,916 $ $ 224,147665,277 (441,130) 1,604,5111,587,595 Power Library 12,680,00012,680,000 the City of Saint John 103,327,000103,327,000 Saint John Free Public Commission of $ $ 437,082263,786173,296440,544578,248 (137,704) Lord 8,972,3225,121,078 (9,118,434) Transit 23,250,33414,278,01214,239,512 John Inc. Saint John Rink at Saint Beaverbrook Commission 29 Controlled Entities Operations 27.The above noted entities are included in the Consolidated Financial Statements. The results of Saint John Energy are included in the Consolidated Financial Statements using the modified equity method Total assetsTotal liabilities Accumulated surplus (deficit)Total revenuesTotal operating expenses Annual surplus (deficit)Total assetsTotal liabilities Accumulated surplus (deficit)Total revenuesTotal operating expenses Annual surplus (deficit) The City of Saint JohnNotes to the Consolidated Financial StatementsFor the year ended December 31, 2025 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 28.Reconciliation of Funding Deficit Upon Adoption of PSAS OnJanuary1,2017theCityadoptedtheuseofPSAS.Asaresult,certainliabilitiesrelatingtoemployment benefits had to be restated to reflect the adoption of the standards. Special Top-up Retirement AgreementsAllowancesHeart and Lung $$$ Liabilities at December 31, 2016 as calculated on 1,035,500 5,133,600 4,517,400 adoption of PSAS Amount of December 31, 2016 liabilities funded (375,600) (665,300) (1,419,200) in current year Balance to be funded in future years 659,900 4,468,300 3,098,200 30 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 29.Other Revenue and Expense Details 2025 Budget2025 2024 $$$ REVENUE Other Revenue from Own Sources Transportation services 18,182,565 10,338,957 10,287,886 Environmental development services 9,542,201 19,734,899 10,021,349 Protective services 2,188,312 2,410,617 2,275,978 General government services 4,983,063 3,921,113 4,405,204 Recreational and cultural services 1,818,685 1,683,343 1,610,709 36,714,826 38,088,929 28,601,126 Contributions from Others Recreational and cultural services - 1,275,093 1,421,306 Transportation services 250,000 358,237 201,833 Protective services 20,000 22,133 19,745 Water and sewer services - - 145,560 Environmental development services 4,456,018 2,590,103 497,010 General government services - 167,019 356,943 4,726,018 4,412,586 2,642,397 Government Transfers for Capital Regional development corporation - 1,252,945 858,891 Canada community building fund - 8,760,186 9,073,350 Funding support public transit and housing - 473,126 1,096,130 GICB funding - 161,239 - Other - 57,635 58,790 Active transportation funding - 330,861 - Low carbon fund - 38,878 512,796 Integrated bilateral funding - 11,337,119 12,703,304 Infrastructure canada - DMAF - 98,046 227,074 - 22,510,035 24,530,335 Other Contributed Assets for Capital Net Assets from Saint John Trade & Convention - - 242,554 Centre Other - - 22,019 - - 264,573 31 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 29.Other Revenue and Expense Details (Continued) 2025 Budget2025 2024 $$$ EXPENDITURES General Government Services Legislative Common Council 583,959 597,583 546,252 Mayor's office 199,201 172,071 166,877 783,160 769,654 713,129 Chief Administration Chief administration officer 808,249 555,702 857,360 Corporate communications 520,949 547,768 443,428 Corporate planning 487,610 404,829 365,080 1,816,808 1,508,299 1,665,868 Common Services Property assessment 1,879,282 1,879,282 1,767,493 City hall building 1,089,123 1,151,519 1,245,382 Public liability insurance 570,000 557,675 544,561 3,538,405 3,588,476 3,557,436 Other Amortization - 10,194,183 9,564,693 Accretion expense - asset retirement obligation - 155,813 229,907 Amortization of asset retirement obligation - 2,033,198 1,168,757 Other 10,500,000 4,240,002 6,063,521 Information systems and support 4,129,730 3,667,794 3,454,086 Debt charges 14,474,000 2,163,893 2,275,827 Post employment (gains) expenses 10,222,250 (6,774,806) (6,942,184) Finance 1,402,392 1,921,720 2,019,567 Human resources 2,801,678 2,900,385 2,428,615 Materials management 1,012,596 993,025 920,017 City solicitor 1,302,142 1,208,741 1,422,142 External Relations 188,430 185,943 202,236 Insurance 153,827 160,875 156,197 Common clerk 737,800 674,468 718,334 Customer Service 956,699 899,277 887,874 Regional Services Commission 396,772 396,687 358,248 48,278,316 25,021,198 24,927,837 Total General Government Services 54,416,689 30,887,627 30,864,270 32 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 29.Other Revenue and Expense Details (Continued) 2025 Budget2025 2024 $$$ Protective Services Police Protection Police operations 16,722,170 16,323,311 14,979,360 Criminal investigations 5,520,031 5,132,035 5,382,923 Administration 2,695,206 3,181,488 2,627,821 Support services 3,346,445 3,225,000 2,748,390 Stations and buildings 1,011,060 1,073,997 1,161,172 Automotive 1,257,645 608,827 638,642 Detention services 198,831 226,070 212,522 30,751,388 29,770,728 27,750,830 Fire Protection Fire operations 27,887,843 25,702,463 24,481,544 Fire prevention 970,571 806,714 852,875 Fire investigation 67,743 32,225 70,037 28,926,157 26,541,402 25,404,456 Other Protective Services Emergency dispatch centre 3,205,120 3,015,375 2,803,284 Inspection services 1,459,850 1,584,516 1,392,673 Enforcement services 297,552 265,652 280,640 Dangerous buildings 278,451 182,338 324,925 Emergency measures 330,971 276,830 224,770 Minimum standards 506,126 362,269 436,987 Animal control 120,000 111,188 105,112 6,198,070 5,798,168 5,568,391 Total Protective Services 65,875,615 62,110,298 58,723,677 Transportation Services Public Works Amortization - 12,483,202 12,078,280 Roads and sidewalks 19,220,969 15,242,591 13,539,790 Other drainage services 4,213,366 3,210,582 3,121,959 Street lighting 1,210,000 1,133,467 1,077,483 Municipal operations 391,301 351,873 350,717 25,035,636 32,421,715 30,168,229 33 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 29.Other Revenue and Expense Details (Continued) 2025 Budget2025 2024 $$$ General Engineering Traffic engineering and systems 2,607,771 2,593,916 2,817,312 Transportation 1,457,303 1,199,100 1,202,594 4,065,074 3,793,016 4,019,906 Parking Administration Parking administration 2,481,908 2,744,145 2,333,283 2,481,908 2,744,145 2,333,283 External Controlled Entities Saint John Transit Commission 19,158,554 14,478,827 14,376,313 19,158,554 14,478,827 14,376,313 Total Transportation Services 50,741,172 53,437,703 50,897,731 Water and Sewer Services Saint John Water & Wastewater Amortization - 17,829,431 17,350,448 Drinking water 17,044,461 14,923,463 14,577,753 Wastewater 12,852,789 15,644,077 10,989,573 Fiscal charges 20,601,865 3,065,677 3,185,853 Industrial water 4,220,815 3,672,206 2,926,005 Infrastructure management 861,410 794,014 636,582 Internal charges 940,000 (96,482) 177,365 Total Water and Sewer Services 56,521,340 55,832,386 49,843,579 Environmental Health Services Sanitary Services 4,145,894 3,678,413 3,874,077 Total Environmental Health Services 4,145,894 3,678,413 3,874,077 34 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 29.Other Revenue and Expense Details (Continued) 2025 Budget2025 2024 $$$ Environmental Development Services Research and Planning Community planning 1,680,262 1,591,100 1,514,457 Succeed and stay - - 121,909 Affordable Housing 2,973,155 6,103,620 703,122 4,653,417 7,694,720 2,339,488 Administration and Geographic Information Systems (GIS) Carpenter shop 404,336 392,350 328,127 GIS 517,550 565,931 429,894 921,886 958,281 758,021 Economic Development Market Square common area 2,500,000 1,518,839 1,742,169 Regional facilities 1,533,134 622,518 712,269 Growth reserve 350,000 454,587 691,756 4,383,134 2,595,944 3,146,194 Real Estate Management Property management 1,763,069 1,590,106 1,597,337 Real estate 325,144 460,775 202,101 2,088,213 2,050,881 1,799,438 Other Environmental Development Services City Market 1,316,629 1,671,960 1,320,768 Community development 4,066,928 4,195,946 3,544,824 5,383,557 5,867,906 4,865,592 External Controlled Entities Aquatic Centre Commission 2,987,694 3,007,008 2,890,310 TD Station Commission 1,979,828 3,106,793 2,890,729 Industrial Parks (2004) Ltd 1,030,000 2,097,355 360,932 Trade and Convention Centre 1,512,995 1,565,335 1,225,583 7,510,517 9,776,491 7,367,554 Total Environmental Development Services 24,940,724 28,944,223 20,276,287 35 The City of Saint John Notes to the Consolidated Financial Statements For the year ended December 31, 2025 29.Other Revenue and Expense Details (Continued) 2025 Budget2025 2024 $$$ Recreational and Cultural Services Cultural Grants Other cultural grants 2,307,317 1,277,744 1,390,382 2,307,317 1,277,744 1,390,382 Parks Parks general services 3,094,029 3,573,344 2,585,389 Rockwood Park 588,051 376,320 585,153 3,682,080 3,949,664 3,170,542 Community Services Recreation and parks 539,824 404,676 748,948 Parks and playgrounds 413,438 475,640 198,898 Pro Kids 243,677 201,994 130,629 1,196,939 1,082,310 1,078,475 Other Recreational and Cultural Services Sports and recreation 3,486,652 3,438,304 3,249,295 Amortization - 2,857,500 2,158,821 Community centres 1,222,380 1,095,644 644,931 Cultural affairs - - 106,447 4,709,032 7,391,448 6,159,494 Externally Controlled Entities Saint John Free Public Library 540,899 665,277 667,049 Lord Beaverbrook Rink 601,000 578,248 626,422 1,141,899 1,243,525 1,293,471 Total Recreational and Cultural Services 13,037,267 14,944,691 13,092,364 TOTAL EXPENDITURES 269,678,701 249,835,341 227,571,985 36 Deloitte LLP P.O. Box 20094 Brunswick Square Saint John NB E2L 5B2 Canada Tel: 506-632-1080 Fax: 506-632-1210 www.deloitte.ca Independent Auditor’s Report To the Her Worship the Mayor and Members of Common Council of the City of Saint John Report on the Auditof theFinancial Statements Opinion We have audited the financial statements of the City of Saint JohnTrust Funds(the “City”), which comprise the statement of financial position as at December 31, 2025, and the statementsof operations, changes in net assetsand cash flows 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 Cityas at December 31, 2025, and the results of its operations, its changes in net assets, and its cash flows for the years then ended in accordance with Canadian public sector accounting standards (“PSAS”). BasisforOpinion 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 Financial Statements section of our report. We are independent of the Cityin 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. ResponsibilitiesofManagementandThoseChargedwithGovernancefortheFinancial 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 Organization’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 Cityorto cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the City’sfinancial reporting process. 1 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 audit conducted in accordance with Canadian GAAS 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 internal control relevant to the audit in 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 Organization’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 Organization’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 City to cease to continue as a going 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. Report on Other Legal and Regulatory Requirements As required by the Government of New Brunswick, we report that, in our opinion, the accounting principles in Canadian public sector accounting standards have been applied on a consistent basis. Chartered Professional Accountants Saint John, NB DATE, 2026 Deloitte LLP Brunswick House th 44 Chipman Hill, 7Floor Saint John, NB E2L 2A9 Canada Tel: 506-632-1080 Fax: 506-632-1210 www.deloitte.ca Independent Auditor’s Report To the Board of Directors of Saint John Transit Commission Report on the Auditof theFinancial Statements Opinion We have audited the financial statements of the Saint John Transit Commission(the “Commission”), which comprise the statement of financial positionas at December 31, 2025, and the statements of operations, remeasurementgains and losses, change in net debtand cash flow for the year then ended, and notesto 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 Organizationas at December 31, 2025,and the results of its operations, its remeasurement gains and losses, changes initsnet 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 Financial Statements section of our report. We are independent of the Organizationin 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 Governanceforthe 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 Organization’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern 1 and using the going concern basis of accounting unless management either intends to liquidate the Organization or to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Organization’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 audit conducted in accordance with Canadian GAAS 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 internal control relevant to the audit in 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 Organization’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 Organization’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 Organization to cease to continue as a going 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. (To be signed Deloitte LLP) Chartered Professional Accountants Saint John, NB Date of the auditor’s report Statement of revenue and Statement of revenue and Statement of revenue and expenses of The City of Saint John The City of Saint John The City of Saint John Trade and Convention CentreTrade and Convention CentreTrade and Convention Centre December 31, 20December 31, 20December 31, 20252525 Independent Auditor’s Report1–2 Statement of revenue and expensesStatement of revenue and expensesStatement of revenue and expenses3 Notes to the financial statementstatementstatement4–5 Deloitte LLP Brunswick House 44 Chipman Hill th 7Floor Saint-John NB E2L 2A9 Tel: 506-632-1080 Fax: 506-632-1210 www.deloitte.ca IndependentAuditor’sReport To the Mayor and Common Counselof The City of Saint John Opinion We have audited the accompanying statement of revenue and expenses of The City of Saint John Trade and Convention Centre (the “Centre”), for the year ended December 31, 20), for the year ended December 31, 20), for the year ended December 31, 2025, and other explanatory information (the “financial statement”). This financial statement was prepared by management in ). This financial statement was prepared by management in ). This financial statement was prepared by management in accordance with the provisions of the management agreement between The City of Saint Johnaccordance with the provisions of the management agreement between The City of Saint Johnaccordance with the provisions of the management agreement between The City of Saint John (the “City”) and Global Spectrum Facility Management Limited, dated July 1, 2024.Global Spectrum Facility Management Limited, dated July 1, 2024.Global Spectrum Facility Management Limited, dated July 1, 2024. In our opinion, the accompanying financial statement of the CIn our opinion, the accompanying financial statement of the CIn our opinion, the accompanying financial statement of the Centre entre entre for the year endedfor the year endedfor the year ended December 31, 2025 are prepared, in all material respects, in accordance with the provisions of the are prepared, in all material respects, in accordance with the provisions of the are prepared, in all material respects, in accordance with the provisions of the management agreement between the City and Global Spectrum Facility Management Limitedmanagement agreement between the City and Global Spectrum Facility Management Limitedmanagement agreement between the City and Global Spectrum Facility Management Limiteddated July 1, 2024. Basis for Opinion We conducted our audit in accordance with Canadian generally accepted auditing standards We conducted our audit in accordance with Canadian generally accepted auditing standards We conducted our audit in accordance with Canadian generally accepted auditing standards (“CanadianGAAS”). Our responsibilities under those standards are further described in the ). Our responsibilities under those standards are further described in the ). Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial StatementsResponsibilities for the Audit of the Financial StatementsResponsibilities for the Audit of the Financial Statements section of our report. We are independent of the Centre in accordance with the ethical requirements that are relevant to our audit of in accordance with the ethical requirements that are relevant to our audit of 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 the financial statements in Canada, and we have fulfilled our other ethical responsibilities in accordance 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 obtwith these requirements. We believe that the audit evidence we have obtwith these requirements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.appropriate to provide a basis for our opinion.appropriate to provide a basis for our opinion. Emphasis of Matter – Basis of AccountingBasis of AccountingBasis of Accounting We draw attention to Note 1 to the financial statements, which describes the basis of accounting. Thefinancial statements are prepared to assist the Centrein complying with the provisions of the management agreement between the City and Global Spectrum Facility Management Limited dated July 1, 2024. As a result, the financial statements may not be suitable for another purpose. Our opinion is not modified in respect of this matter. Responsibilities of Management and Those Charged with Governance for the Financial Statements Management is responsible for the preparation of the financial statement in accordance with the provisions of the management agreement between the City and Global Spectrum Facility Management Limiteddated July 1, 2024, 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 Centre’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 Centreor to cease operations, or has no realistic alternative but to do so. Those charged with governance are responsible for overseeing the Centre’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 audit conducted in accordance with Canadian GAAS will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or inthe 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 As part of an audit in accordance with Canadian GAAS, we exercise professional judgment and maintain 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 Identify and assess the risks of material misstatement of the financial statements, whether due to 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 fraud or error, design and perform audit procedures responsive to those risks, and obtain audit fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basievidence that is sufficient and appropriate to provide a basievidence that is sufficient and appropriate to provide a basis for our opinion. The risk of not s for our opinion. The risk of not s for our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as detecting a material misstatement resulting from fraud is higher than for one resulting from error, as 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 fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Obtain an understanding of internal control relevant to the audit in order to design audit procedures Obtain an understanding of internal control relevant to the audit in order to design audit procedures Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Centre’s internal control.s internal control.s internal control. Evaluate the appropriateness of accounting policies used and the reasonableness of accounting Evaluate the appropriateness of accounting policies used and the reasonableness of accounting Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by management.estimates and related disclosures made by management.estimates and related disclosures made by management. Conclude on the appropriateness of managementConclude on the appropriateness of managementConclude 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 and, based on the audit evidence obtained, whether a material uncertainty exists related to events and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the or conditions that may cast significant doubt on the or conditions that may cast significant doubt on the Centre’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditorwe conclude that a material uncertainty exists, we are required to draw attention in our auditorwe 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 Centreto cease to continue as a going concern. Evaluate the overall presentation, structure and content of the financial statement, including the disclosures, and whether the financial statement represents 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. Chartered Professional Accountants DATE, 2026 The City of Saint John Trade and Convention Centre Statement of revenue and expenses Year ended December 31, 2024 20252025 2024 BudgetActual Actual Notes $$$ 1 Revenue Food and beverage 1,100,000 1,077,954 — Events 314,750 505,957 429,441 Commissions on audio visual rentals 276,425135,480— Commissions on food and beverage sales and sundry revenue — — 610,957 1,691,175 1,719,391 1,040,398 Direct expenses Events 182,555 465,705465,705 — Food and beverage cost of sales 495,000 400,098400,098 — Wages and benefits — —— 240,300 Laundry — —— 10,059 Supplies———8,023 677,555 865,803865,803 258,382258,382258,382 1,013,620 853,588853,588 782,016782,016782,016 Overhead expenses Salaries and benefits 558,840558,840458,483458,483 396,002 General manager reimbursement 40,00040,000 50,00050,000 — Bank charges 15,00015,000 29,74029,740 — Professional fees 15,00015,000 27,20027,200 — Insurance 30,00030,000 24,33024,330 — Linens and uniform 23,50023,50023,255— Repairs and maintenance 43,10043,100 18,413 — Telecommunication 10,00010,000 17,089 10,115 Advertising and promotion —— 13,944 13,944 Office 10,00010,000 13,816 — Operating supplies 9,5009,50010,559— Travel and training 14,500 9,353 6,793 Software — 6,926 — Dues and subscriptions 10,000 5,533 — Gas — 4,834 3,280 Legal and audit ——77,263 Miscellaneous expense — — 49,057 Operating equipment and uniformsOperating equipment and uniformsOperating equipment and uniforms — — 23,316 Outside services 40,000 — 19,771 Cleaning and maintenance 11,500 — 19,297 Equipment rental ——13,535 Water heating charges — — 11,984 Postage, printing and stationery 2,500 — 6,134 Garbage removal — — 5,175 Licenses 2,000 — 958 Entertainment ——139 835,440 713,475 656,763 Operating surplus for the year 178,180 140,113 125,253 Expenses not paid directly by the Centre HVAC utility/maintenance 89,866 153,000 87,259 Utilities 56,380 32,604 73,963 Real estate tax 66,995 68,825 57,931 Management fee 174,695 205,000197,398 Professional services - — — 459,429 416,551 387,936 Total expenses 1,972,424 1,995,829 1,303,081 Total deficit for the year(281,249)(276,438)(262,683) The accompanying notes are an integral part of the financial statement. Page 3 The City of Saint John Trade and Convention Centre Notes to the financial statement December 31, 2025 1.Revenue Under a venue management agreement effective July 1, 2024, the Saint John Trade and Convention Centre (the “Centre”) is managed and operated by Global Spectrum Facility Management, L.P. (operating as Oak View Group), acting as agent on behalf of the Centre. All revenues generated from the operations of the Centre, including facility rentals, event revenues, food and beverage sales, and commercial rights, are recognized as revenues of the Centre. 2.Management agreement – Saint John Trade and Convention Centre This financial statement has been prepared in accordance with the provisions of a venueThis financial statement has been prepared in accordance with the provisions of a venueThis financial statement has been prepared in accordance with the provisions of a venue management agreement between the City of Saint John (the “City”) and Global Spectrummanagement agreement between the City of Saint John (the “City”) and Global Spectrummanagement agreement between the City of Saint John (the “City”) and Global Spectrum Facility Management, L.P., operating as Oak View Group (the “Manager”).Facility Management, L.P., operating as Oak View Group (the “Manager”).Facility Management, L.P., operating as Oak View Group (the “Manager”). The Centre is owned by the City and is managed and operated by the Manager under a venueThe Centre is owned by the City and is managed and operated by the Manager under a venueThe Centre is owned by the City and is managed and operated by the Manager under a venue management agreement effective July 1, 2024. The agreement provides for an initial termmanagement agreement effective July 1, 2024. The agreement provides for an initial termmanagement agreement effective July 1, 2024. The agreement provides for an initial term ending December 31, 2029, with an option for the City to extend the agreement fending December 31, 2029, with an option for the City to extend the agreement fending December 31, 2029, with an option for the City to extend the agreement for an additional five-year term, subject to the agreement of revised fee arrangements.year term, subject to the agreement of revised fee arrangements.year term, subject to the agreement of revised fee arrangements. Under the terms of the agreement, the Manager acts as agent on behalf of the City in theUnder the terms of the agreement, the Manager acts as agent on behalf of the City in theUnder the terms of the agreement, the Manager acts as agent on behalf of the City in the operation of the Centre. The City retains responsibility for the financial results of the Centre,operation of the Centre. The City retains responsibility for the financial results of the Centre,operation of the Centre. The City retains responsibility for the financial results of the Centre, including any operating surplus or deficit. Management fees payable under the agreement areincluding any operating surplus or deficit. Management fees payable under the agreement areincluding any operating surplus or deficit. Management fees payable under the agreement are included in the Centre’s financial results.included in the Centre’s financial results.included in the Centre’s financial results. With the establishment of the Fundy RegionalFundy RegionalFundy RegionalServices Commission Services Commission Services Commission operating deficits and other applicable costs of the Centre are shared with the municipalities making up the Commission.applicable costs of the Centre are shared with the municipalities making up the Commission.applicable costs of the Centre are shared with the municipalities making up the Commission. These costs are allocated among the municipalities in proportion to their respective tax bases.These costs are allocated among the municipalities in proportion to their respective tax bases.These costs are allocated among the municipalities in proportion to their respective tax bases. 3.Recording of assets and liabilitiesRecording of assets and liabilitiesRecording of assets and liabilities The City’s investment in the structure and related equipment, furnishings as investment in the structure and related equipment, furnishings as investment in the structure and related equipment, furnishings and fixtures is reported on the Careported on the Careported on the Capital andpital andpital and L L Loan oan oan FFFund balance sheet of the Cityund balance sheet of the Cityund balance sheet of the City. 4.Greater Saint John Regional Facilities Commission ActGreater Saint John Regional Facilities Commission ActGreater Saint John Regional Facilities Commission Act Under the regional Greater Saint John Regional Facilities Commission Act, pursuant to 87(2)(a) of the Municipalities Act, councils of the participating communities of Grand Bay Westfield, Quispamsis, Rothesay and Saint John are required to pay contributions towards the operation of regional facilities, which include the Centre. The amount of contribution is calculated on the net operating cost for each facility covered under the Municipalities Act, in proportion to the tax base of the contributing municipality. 5.Comparative figures Comparative figures have been updated to reflect the current yearpresentation for consistency purposes. These changes had no impact on previously reported results. Page 4 The City of Saint John 2026 General Fund Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance $$$$ Revenues Property Taxes157,817,119 78,908,562 78,908,562 - Fiscal Capacity Funding17,188,123 8,594,064 8,594,064 - Development & Community Services11,512,694 2,879,453 3,724,854 845,401 Finance & Strategic Investment Services8,995,869 3,023,334 3,391,354 368,020 Service Delivery & Operations Services7,047,828 3,523,918 3,819,645 295,727 Legal & Public Safety Services2,516,407 1,272,348 1,290,108 17,760 Total Revenues 2 05,078,040 9 8,201,679 9 9,728,587 1 ,526,907 Expenditures Legal & Public Safety Services69,394,947 34,595,502 32,286,617 2,308,885 Service Delivery & Operations Services43,235,283 18,877,210 19,719,444 (842,234) Other Charges33,618,593 15,830,856 15,690,924 139,932 Development & Community Services26,850,884 13,494,251 13,486,674 7,577 Finance & Strategic Investment Services20,696,053 11,571,257 11,261,253 310,004 People & System Services9,665,391 5,064,998 4,873,823 191,175 Culture & Performance Services1,616,888 809,846 633,838 176,008 Total Expenditures 2 05,078,040 1 00,243,920 9 7,952,574 2 ,291,346 Surplus (Deficit) - ( 2,042,241) 1 ,776,013 3 ,818,253 City of Saint John by Service 2026 General Fund Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance $$$$ Culture & Performance Services Salaries1,290,404 645,208 458,255 186,953 Goods & Services326,483 164,638 175,583 (10,945) TOTAL 1,616,888 809,846 633,838 176,008 Development & Community Services Salaries12,300,180 6,148,821 5,643,993 504,828 Goods & Services14,550,704 7,345,430 7,842,681 (497,251) TOTAL 2 6,850,884 1 3,494,251 1 3,486,674 7,577 Legal & Public Safety Services Salaries29,432,313 14,709,304 14,153,094 556,210 Goods & Services39,962,634 19,886,198 18,133,522 1,752,676 TOTAL 6 9,394,947 3 4,595,502 3 2,286,617 2 ,308,885 Other Charges Goods & Services33,618,593 15,830,856 15,690,924 139,932 TOTAL 3 3,618,593 1 5,830,856 1 5,690,924 1 39,932 People & Systems Services Salaries5,540,370 2,770,192 2,668,374 101,818 Goods & Services4,125,021 2,294,806 2,205,449 89,357 TOTAL 9 ,665,391 5 ,064,998 4 ,873,823 191,175 Service Delivery & Operations Services Salaries15,558,362 7,724,918 7,893,486 (168,568) Goods & Services27,676,922 11,152,292 11,825,959 (673,667) TOTAL 4 3,235,283 1 8,877,210 1 9,719,444 (842,234) Finance & Strategic Investment Services Salaries6,386,603 3,193,298 2,984,138 209,160 Goods & Services14,309,450 8,377,959 8,277,116 100,843 1 1,261,253 310,004 TOTAL 2 0,696,05311,571,257 TOTAL EXPENDITURES 2 05,078,040 1 00,243,920 9 7,952,574 2 ,291,346 The City of Saint John 2026 General Fund Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance $$$$ Revenues Property Taxes157,817,119 78,908,562 78,908,562 - Fiscal Capacity Funding17,188,123 8,594,064 8,594,064 - Development & Community Services11,512,694 2,879,453 3,724,854 845,401 Finance & Strategic Investment Services8,995,869 3,023,334 3,391,354 368,020 Service Delivery & Operations Services7,047,828 3,523,918 3,819,645 295,727 Legal & Public Safety Services2,516,407 1,272,348 1,290,108 17,760 Total Revenues 2 05,078,040 9 8,201,679 9 9,728,587 1 ,526,907 Expenditures Culture & Performance Services Chief Administrative Officer688,693 344,354 416,708 (72,354) Corporate Planning928,195 465,492 217,130 248,362 Total Culture & Performance Services 1 ,616,888 8 09,846 6 33,838 1 76,008 Development & Community Services Community Planning1,668,320 776,298 687,901 88,397 Infrastructure Development397,629 197,471 160,283 37,188 Animal Control126,903 63,450 57,206 6,244 Dangerous & Vacant Buildings286,436 144,031 71,408 72,623 Development Incentive Reserves350,000 175,000 205,000 (30,000) Heritage Conservation Service215,097 67,830 71,012 (3,182) Minimum Property Standards606,319 304,832 221,775 83,057 By-Law Compliance Services1,391,435 696,475 459,007 237,468 Permitting & Inspection Services1,611,441 834,245 820,335 13,910 Arts & Culture Board70,000 35,000 22,609 12,391 Community Services827,120 382,148 331,419 50,729 PRO Kids257,324 126,676 67,617 59,059 Carlent Community Centre195,979 97,990 97,990 - Community Development525,810 271,243 282,252 (11,009) Boys & Girls Club-Contracted Services146,344 73,172 73,172 - YMCA-Contracted Services157,898 78,949 78,949 - Neighbourhood Development261,000 130,500 192,000 (61,500) North End Communicty Centre195,979 97,990 97,990 - Recreation Programming1,311,535 680,336 565,790 114,546 Unspecified Grants300,400 150,200 242,900 (92,700) Affordable Housing Strategy205,972 104,210 279,089 (174,879) Housing Accelerator Program3,291,241 1,646,286 565,334 1,080,952 Housing for All2,090,127 1,045,136 1,941,161 (896,025) Lifeguards207,466 155,599 155,599 - City Market1,449,361 748,383 1,169,882 (421,499) Landscape-Parks & Open Spaces3,523,462 1,761,584 1,851,485 (89,901) Rockwood Park632,279 348,005 232,964 115,041 Urban Forestry463,041 231,550 320,619 (89,069) Saint John Horticultural Association80,000 80,000 78,835 1,165 Arena & Operations Maintenance1,447,058 748,450 1,139,565 (391,115) Sportsfield Operation & Maintenance1,780,793 846,332 773,742 72,590 Other Facilites Operation & Maintenance777,116 394,880 171,784 223,096 Total Development & Community Services 2 6,850,884 1 3,494,251 1 3,486,674 7 ,577 The City of Saint John 2026 General Fund Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance $$$$ Legal & Public Safety Services Mayor's Office186,314 93,305 92,924 381 Common Council673,869 337,011 319,399 17,612 Common Clerk805,318 402,656 385,668 16,988 General Counsel1,442,787 711,396 577,456 133,940 Fire Rescue & Suppression Service25,563,543 12,919,014 12,620,884 298,130 Fire Training4,500 2,250 - 2,250 Medical First Responder30,000 15,000 17,692 (2,692) Technical Rescue Response100,410 50,254 47,218 3,036 Hazardous Materials82,939 42,503 29,328 13,175 Fire Prevention991,086 496,392 466,573 29,819 Fire Investigation70,698 35,406 14,027 21,379 Emergency Management Services260,392 130,411 140,034 (9,623) Street Light & Water Hydrant3,882,600 1,941,300 1,886,252 55,048 Public Safety Communications Centre3,301,226 1,622,982 1,633,560 (10,578) Police Commission Grant31,999,266 15,795,622 14,055,600 1,740,022 Total Legal & Public Safety Services 6 9,394,947 3 4,595,502 3 2,286,617 2 ,308,885 Other Charges Fiscal Charges12,956,400 5,971,434 5,874,222 97,212 Landfill Closure300,000 150,000 150,000 - Special Pension Contribtuions10,409,465 5,204,730 5,013,184 191,546 Capital Reserves3,000,000 1,500,000 1,644,130 (144,130) Other Charges952,728 4,692 9,388 (4,696) Capital from Operating6,000,000 3,000,000 3,000,000 - Total Other Charges 3 3,618,593 1 5,830,856 1 5,690,924 139,932 Finance & Strategic Investment Services Finance1,659,945 754,980 606,261 148,719 Assessment1,909,173 1,909,173 1,909,173 - Purchasing468,030 234,010 237,161 (3,151) Insurance157,006 78,502 79,494 (992) Liability Insurance570,000 570,000 548,173 21,827 Agencies, Boards and Commissions9,305,387 4,464,958 4,366,690 98,268 Engineering1,655,775 842,523 917,827 (75,304) Carpenter Shop431,012 217,300 226,950 (9,650) Facilities Management2,279,722 1,164,564 1,024,735 139,829 Police Headquarters- 215,849 215,849 - City Hall Building1,174,123 588,977 597,533 (8,556) Stockroom238,413 119,216 101,921 17,295 GIS470,828 189,390 193,462 (4,072) Real Estate376,638 221,815 236,023 (14,208) Total Finance & Strategic Investment Services 2 0,696,053 1 1,571,257 1 1,261,253 3 10,004 People & Systems Services Human Resources3,239,721 1,619,872 1,529,753 90,119 Corporate Communications974,427 487,216 330,264 156,952 Customer Service926,251 539,784 542,414 (2,630) Information Technology4,524,991 2,418,126 2,471,392 (53,266) Total People & System Services 9 ,665,391 5 ,064,998 4 ,873,823 1 91,175 The City of Saint John t 2026 General Fund Operating Budge June 2026 2026YTD YTD YTD BudgetBudgetActualVariance $$$$ Service Delivery & Operation Services Snow Control Streets6,182,269 3,241,438 3,679,676 (438,238) Street Cleaning1,783,385 894,110 1,167,049 (272,939) Street Services - Surface Maintenance8,851,449 1,899,748 1,693,209 206,539 Utility Cuts1,291,767 645,906 409,924 235,982 Snow Control Sidewalk1,225,913 618,531 621,939 (3,408) Sidewalk Maintenance1,109,404 548,548 476,356 72,192 Pedestrian & Traffic Managment Service2,552,334 1,272,492 1,462,102 (189,610) Stormwater Management4,236,465 2,143,916 2,183,063 (39,147) Solid Waste Management4,008,470 2,018,009 1,990,900 27,109 Parking Administration1,010,882 505,808 475,964 29,844 Transit Debt1,373,000 347,424 347,425 (1) Transit Subsidy7,611,353 3,805,674 3,805,946 (272) Fleet Operations2,424 18,468 478,257 (459,789) Fleet Fuel- - (8,011) 8,011 Fleet Pooled Vehicles704 (20,626) (27,295) 6,669 Fleet Stockroom367,867 184,290 142,520 41,770 Fleet Welding839 790 48,867 (48,077) Peel Plaza246,334 176,994 174,564 2,430 Market Square299,906 150,135 190,493 (40,358) 406,496 19,059 Off Street Parking1,080,519 425,555 Total Service Delivery & Operations Services 4 3,235,283 1 8,877,210 1 9,719,444 ( 842,234) Total Expenditures 2 05,078,040 1 00,243,920 9 7,952,574 2 ,291,346 Surplus (Deficit) - ( 2,042,241) 1 ,776,013 3 ,818,253 Saint John Water 2026 Water & Sewerage Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance $$$$ Revenues Flat Rate Accounts22,102,000 11,051,000 11,101,151 50,151 Meter Rate Accounts19,389,500 6,463,166 6,222,056 (241,110) Industrial Raw Water Accounts7,697,445 2,565,814 2,259,204 (306,610) Fire Protection Levy2,600,000 1,299,996 1,299,996 - Storm Sewer Levy1,000,000 499,998 499,998 - Other Revenues1,750,000 809,988 910,172 100,184 Previous Year's Surplus1,170,837 585,414 585,414 - Total Revenues55,709,782 23,275,376 22,877,991 (397,385) Expenditures Drinking Water Service25,818,826 12,677,368 13,383,037 (705,669) Wastewater Service20,573,228 10,590,472 12,025,268 (1,434,796) Infrastructure Management1,024,413 513,715 426,561 87,154 Industrial Water Service8,293,315 3,378,801 2,856,740 522,061 Total Expenditures55,709,782 27,160,356 28,691,606 (1,531,250) Surplus (Deficit)- (3,884,980) (5,813,615) (1,928,635) Њ Saint John Water 2025 Water & Sewerage Operating Budget Salaries and Goods & Services June 2026 Drinking Water Service Wages and Benefits4,021,156 2,010,472 2,435,993 (425,521) Goods & Services21,797,670 10,666,896 10,947,046 (280,150) Total 25,818,826 1 2,677,368 1 3,383,039 (705,671) Wastewater Service Wages and Benefits4,767,626 2,383,740 2,588,347 (204,607) Goods & Services15,805,602 8,206,732 9,436,920 (1,230,188) Total 2 0,573,228 1 0,590,472 1 2,025,267 (1,434,795) Infrastructure Management Wages and Benefits762,199 381,088 332,681 48,407 Goods & Services262,214 132,627 93,880 38,747 Total 1 ,024,413 5 13,715 4 26,561 87,154 Industrial Water Service Wages and Benefits1,301,196 650,508 340,429 310,079 Goods & Services6,992,119 2,728,293 2,516,311 211,982 Total 8 ,293,315 3 ,378,801 2 ,856,739 522,062 TOTAL EXPENDITURES 55,709,782 2 7,160,356 2 8,691,606 ( 1,531,250) Ћ Saint John Water 2025 Water & Sewerage Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance Revenues Flat Rate Accounts22,102,000 11,051,000 11,101,151 50,151 Meter Rate Accounts19,389,500 6,463,166 6,222,056 (241,110) Industrial Raw Water Accounts7,697,445 2,565,814 2,259,204 (306,610) Fire Protection Levy2,600,000 1,299,996 1,299,996 - Storm Sewer Levy1,000,000 499,998 499,998 - Other Revenues1,750,000 809,988 910,172 100,184 Previous Year's Surplus1,170,837 585,414 585,414 - Total Revenues55,709,782 23,275,376 22,877,991 (397,385) Expenditures Drinking Water Service Watershed Management693,523 348,701 341,468 7,233 Water Treatment9,453,598 4,761,375 4,965,016 (203,641) Water Pumping & Storage1,258,775 705,243 755,136 (49,893) Transmission & Distribution5,080,715 2,556,614 2,675,962 (119,348) Customer Metering768,131 385,793 526,924 (141,131) Internal Charges470,000 203,748 203,748 - Other Charges595,272 297,636 357,975 (60,339) Debt Servicing3,265,121 1,301,410 1,301,410 - Transfer to Capital Reserve- - 138,550 (138,550) Capital from Operating4,233,691 2,116,848 2,116,848 - Total Drinking Water Service25,818,826 12,677,368 13,383,037 (705,669) Wastewater Service Wasterwater Pumping3,697,101 1,904,112 2,056,266 (152,154) Wastewater Collection3,547,516 1,791,508 1,382,068 409,440 Wastewater Treatment6,622,431 3,425,608 5,057,344 (1,631,736) Internal Charges470,000 203,748 203,748 - Other Charges595,271 297,630 357,975 (60,345) Debt Servicing2,688,182 1,491,506 1,491,506 - Capital from Operating2,952,727 1,476,360 1,476,360 - Total Wastewater Services20,573,228 10,590,472 12,025,268 (1,434,796) Infrastructure Management Engineering Services1,024,413 513,715 426,561 87,154 Total Infrastructure Management1,024,413 513,715 426,561 87,154 Ќ Saint John Water 2025 Water & Sewerage Operating Budget June 2026 2026YTD YTD YTD BudgetBudgetActualVariance Industrial Water Service Watershed Management942,821 472,789 263,978 208,811 Water Pumping & Transmission3,189,162 1,605,468 1,403,650 201,818 Customer Metering279,710 139,826 28,394 111,432 Debt Servicing1,560,169 - - - Transfer to Capital Reserves836,677 418,338 418,338 - Transfer to Operating Reserve730,182 365,088 365,088 - Capital from Operating754,594 377,292 377,292 - Total Industrial Water Service8,293,315 3,378,801 2,856,740 522,062 Total Expenditures55,709,782 27,160,356 28,691,606 (1,531,249) Surplus (Deficit)- (3,884,980) (5,813,615) (1,928,635) Ѝ