City Surplus

The City tracks and shares amounts for three types of surplus:

Operating
Annual
Accumulated

The Operating Surplus can be used to cover unexpected costs. However, the Annual and Accumulated surplus amounts reported don’t represent funds available for use.

All surplus amounts and financial details are shared in the Annual Report. The Annual Report provides a comprehensive view of The City’s financial statements.

Below you’ll find information on what makes up each surplus type, if the amounts represent funds that can be used, and if so how.

Surplus type	What it is and where it comes from	Areas it can support
Operating Surplus	We are required to prepare a balanced budget each year, meaning we don't plan for a deficit or a surplus. However, when costs come in lower than budgeted or revenues are higher, an operating surplus can occur. This surplus reflects our commitment to cost-efficiency and responsible financial management. We provide quarterly updates to Council and Calgarians regarding our operating variance. Operating expenses are outlined in the operating budget. They include costs of delivering services important to Calgarians as well as operation and maintenance of facilities, infrastructure, equipment, systems and vehicles. The revenues to fund them mostly come from property tax and user fees.	As the amount saved cannot be projected and isn’t consistent year to year, the operating savings (surplus) are not used to reduce the annual operating budget permanently. We transfer the surplus to the Fiscal Stability Reserve (FSR). This reserve acts as a financial safety net and is used to: Respond to operational emergencies Fund urgent or unexpected capital projects Offset unplanned drops in revenue that could impact services This approach ensures we can continue to deliver essential services and respond to unforeseen challenges. Helping Calgarians today and preparing for tomorrow.
Annual Surplus	When we receive capital funding (such as government grants or developer contributions), it’s recorded as revenue in the year it receives it. The funds are used to build infrastructure that depreciates over time, the depreciation is recorded as expenses in future years.	This surplus is mainly an indicator showing whether we generated enough revenue to cover expenses for the year. It includes Operating Surplus, but it doesn’t create extra funds for new spending. It’s not used to support the budget or reduce taxes.
Accumulated Surplus	Accumulated Surplus represents our total net economic resources, both financial and non-financial. It is the sum of net financial performance since The City's beginning. It’s the equity in The City comprising mainly of the value of infrastructure and equity holdings in Enmax.	The value from this holding cannot be realized as funds to support other areas unless the asset, such as infrastructure (roads, bridges, Enmax) are sold. This Accumulated Surplus also represents amounts indicated in both the Annual Surplus and Operating Surplus.

Surplus type

What it is and where it comes from

Areas it can support

Operating Surplus

We are required to prepare a balanced budget each year, meaning we don't plan for a deficit or a surplus. However, when costs come in lower than budgeted or revenues are higher, an operating surplus can occur. This surplus reflects our commitment to cost-efficiency and responsible financial management.
We provide quarterly updates to Council and Calgarians regarding our operating variance.
Operating expenses are outlined in the operating budget. They include costs of delivering services important to Calgarians as well as operation and maintenance of facilities, infrastructure, equipment, systems and vehicles. The revenues to fund them mostly come from property tax and user fees.

As the amount saved cannot be projected and isn’t consistent year to year, the operating savings (surplus) are not used to reduce the annual operating budget permanently. We transfer the surplus to the Fiscal Stability Reserve (FSR). This reserve acts as a financial safety net and is used to:

Respond to operational emergencies
Fund urgent or unexpected capital projects
Offset unplanned drops in revenue that could impact services

This approach ensures we can continue to deliver essential services and respond to unforeseen challenges. Helping Calgarians today and preparing for tomorrow.

Annual Surplus

When we receive capital funding (such as government grants or developer contributions), it’s recorded as revenue in the year it receives it. The funds are used to build infrastructure that depreciates over time, the depreciation is recorded as expenses in future years.

This surplus is mainly an indicator showing whether we generated enough revenue to cover expenses for the year. It includes Operating Surplus, but it doesn’t create extra funds for new spending. It’s not used to support the budget or reduce taxes.

Accumulated Surplus

Accumulated Surplus represents our total net economic resources, both financial and non-financial. It is the sum of net financial performance since The City's beginning. It’s the equity in The City comprising mainly of the value of infrastructure and equity holdings in Enmax.

The value from this holding cannot be realized as funds to support other areas unless the asset, such as infrastructure (roads, bridges, Enmax) are sold. This Accumulated Surplus also represents amounts indicated in both the Annual Surplus and Operating Surplus.