View financial reports and statements

Learn more about the city's financial position and download audited annual statements and spending reports.

On this page:

Financial dashboard
Annual financial statements
Capital reports

Financial dashboard

Each year, we publish a dashboard to show how the city is doing financially. It simplifies our finances into four categories with various measures for each. We show one measure per category.

Overall financial position

Our overall financial position is positive with a positive trend for the future.

Long-term projections indicate there will be insufficient funding to replace important infrastructure, but innovative programs like the stormwater management utility fee and credit program provide us with dedicated funding.

Our asset management plan provides recommendations for long-term funding for the capital budget.

Measurement

This is measured using operating surplus and deficit. It shows:

how much tax-based revenue is left over after normal annual operating expenses are deducted
if we are setting aside enough money for longer-term expenses

Target

The target should be above zero in a surplus. If the measure is below zero, we are not setting aside enough money to fund annual amortization expenses.

Results

On the tax base side, we had an operating deficit for most of the last decade, with an improvement in the last couple of years. This indicates we have not been able to cover the cost of annual amortization of our assets from our own funds in prior years. This has been a significant contributor to the infrastructure deficit.

This is a common issue, as cities have not traditionally budgeted for asset amortization in operating budgets but have used capital reserve contributions instead.

On the water and wastewater side, there has historically been an operating surplus, which allows for capital replacement needs based on current replacement value.

Economic growth

With limited land for brand-new developments, Waterloo relies on intensification for continued economic growth. This means new buildings are usually constructed in areas that are already built up.

Measurement

These developments are measured using assessment growth – the addition of tax revenue from new properties for a city and an indicator of a healthy local economy.

Target

There is no specific target, but we are monitoring this trend to ensure the continued economic health of the community.

Results

Assessment growth has slowed from single detached homes in subdivisions and now relies on in-filling projects.

There was a large increase in 2017 from large multi-residential buildings and proactive assessment management. In 2024, the 5-year rolling average was 1.28%.

Reserve levels

Reserve funds stabilize tax rates, fund one-time expenses, and provide flexibility to protect our financial position. Cities need to save enough to build or replace assets as required and spread out the cost over many years to prevent sudden tax increases.

Measurement

This measure shows the amount contributed to reserve funds in a given year compared to the ongoing costs of asset amortization, such as a city-owned vehicle losing its value over time.

Target

At a minimum, we should contribute enough reserve funds to match annual amortization costs.

Ideally, we should save slightly more because amortization is based on historical costs, and assets need to be replaced at current cost.

Results

On the water and wastewater side, we have been able to achieve this goal.

On the tax-based side, our contributions to capital reserves fell significantly short of the annual amortization amount. The ratio has improved over time and now meets the target. However, the cumulative shortfall over the years impacts our infrastructure deficit.

Debt

The overall trend for tax-funded debt is improving since the city has shown discipline in minimizing additional debt issues. The approved ten-year capital budget includes limited new debt.

Measurement

This measure shows the total tax-funded debt per resident, which helps determine a city’s fiscal sustainability.

Target

The trend should decrease over time as existing debt is paid off and the population grows. New debt issued should be less than the existing debt paid off, and not exceed the population growth rate. In the long term, the city should not exceed its provincial comparator group.

Results

Debt per capita has consistently improved over the years. For many years, we exceeded the provincial average for municipalities with more than 50,000 people, but we are now below that average. We continue to be disciplined about issuing new debt in order to maintain this trend.

Annual financial statements

These statements tell the story of our financial position at the end of each calendar year. An independent accounting firm audits them and we publish the previous year's statement in May.

To help understand financial statements, use this common language guide.

Audited financial statements

Building standards financial statements

Past financial statements are available by request. Contact 519-747-8774 or finance@waterloo.ca.

Capital reports

We report on capital spending to tell how building projects benefit the community over a calendar year.

If you require any PDF material in an alternate format, contact 519-747-8774 or email finance@waterloo.ca.