City of Chilliwack
Notes to Consolidated Financial Statements
Year Ended December 31, 2013
6
Unearned revenue:
Included in unearned revenue are unspent Federal Gas Tax Agreement Funds as follows:
2013
2012
Opening balance
927,186
$
1,715,581
$
Received during the year
1,909,737
1,910,171
Interest Earned
29,643
35,537
Spent during the year
(1,571,700)
(2,734,103)
Closing balance
1,294,866
$
927,186
$
Gas Tax funding is provided by the Government of Canada. The use of the funding is established by a funding agreement between the
Municipality and the Union of British Columbia Municipalities. Gas Tax funding may be used towards designated public transit, community energy,
water, wastewater, solid waste and capacity building projects, as specified in the funding agreement.
7
Capital partnership obligation:
In 2004, the City of Chilliwack entered into a 25 year agreement with the Chilliwack Chiefs Development Group Ltd. (CDG) for the provision of
community priority time in the Prospera Centre. As part of the agreement, the City pays $400,000 annually to CDG for the operation of the facility
and $175,000 as a reimbursement for revenues collected directly by the City. In addition, the City is required to make annual capital payments
of $1.2 million which is applied towards CDG's term loan associated with the facility, until CDG's loan is fully repaid. CDG's term debt has an
all-in rate fixed at 5.93%. At the end of the term of the agreement, the City obtains legal ownership of the facility.
The City's capital partnership obligations under this agreement are as follows:
2014
1,200,000
$
2015
1,200,000
2016
1,200,000
2017
1,200,000
2018
1,200,000
Thereafter
3,568,998
9,568,998
Less amounts representing interest at 5.93%
(2,232,248)
7,336,750
$
8
Property under development:
The property under development relates to projects of Chilliwack Economic Partners Corporation as follows:
2013
2012
Canada Education Park
3,764,916
$
4,977,176
$
Downtown Redevelopment
2,293,273
2,363,585
6,058,189
$
7,340,761
$
Included in property under development is $324,421 (2012 - $379,525) in capitalized interest.
City of Chilliwack Financial Statements
49
2013 Annual Report
