City of Chilliwack
Notes to Consolidated Financial Statements
Year Ended December 31, 2013
4
Accounts payable and accrued liabilities:
2013
2012
Trade payables
8,469,888
$
8,221,030
$
Province of British Columbia
1,340,220
1,318,386
Government of Canada
4,368,485
4,171,913
Regional and local governments
414,182
744,707
Landfill closure and post-closure costs
1,696,000
2,782,000
16,288,775
$
17,238,036
$
Landfill closure and post-closure costs:
The City has responsibility for closure and post-closure care of the Bailey Landfill site. Potential costs related to closure activities at this site
include drainage control, leachate monitoring, gas monitoring and recovery, and final ground cover. The landfill site is expected to require post-
closure care for twenty-five years after its estimated closure in 2071. The liability amount of $1,696,000 (2012 - $2,782,000) has been
recorded by multiplying the estimated net present value of total remaining costs related to closure and post-closure care ($5,514,000) by
the cumulative capacity used (31%) and is reduced as landfill restoration costs are incurred. There are no assets designated for settling
the closure and post-closure care liability.
The City has further appropriated a portion of financial equity as a landfill reserve. The balance of $4,897,202 (2012 - $5,922,712) is
appropriated for other landfill related costs and unforeseen closure and post-closure costs.
5
Development cost charges:
The development cost charge liability represents funds received from developers for capital infrastructure expenditures required as a result of their
development projects. As these funds are expended, the liability will be reduced and the amount expended will be recorded as revenue.
Developers are entitled to pay development cost charges (DCCs) in equal installments over three years if the total amount payable is equal to or
greater than $50,000. Installments due for the next two years are recorded as accounts receivable and are guaranteed by the developer by
providing an irrevocable letter of credit payable to the City of Chilliwack for the remaining amount of DCCs owing. As at December 31, 2013, the
amount of the DCCs due over the next two years is $3,010,048 (2012 - $1,843,734).
Assets are not physically segregated to meet the requirements of the restricted revenues. The liability is amortized to revenue as the related
expenditures are incurred.
City of Chilliwack Financial Statements
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