2019 Annual Report

City of Chilliwack 72 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2019 (g) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses as at the date of the financial statements. Significant estimates include assumptions used in estimating provisions for accrued liabilities, landfill post-closure liability, contingent liabilities, estimated useful lives of tangible capital assets and the value of assets contributed to the City. Actual results could differ from these estimates. (h) Contaminated sites: A liability for contaminated sites is recognized when a site is not in productive use and the following criteria are met: (i) An environmental standard exists; (ii) Contamination exceeds the environmental standard; (iii) The City is directly responsible or accepts responsibility; (iv) It is expected that future economic benefits will be given up; and (v) A reasonable estimate of the amount can be made. The liability is recognized as management's estimate of the cost of post-remediation including operation, maintenance and monitoring that are an integral part of the remediation strategy for a contaminated site. 2 Restricted Assets: The City has restrictions on the portfolio investments and cash available for operational use as follows: 2019 2018 Cash 62,084,429 $ 40,124,957 $ Portfolio Investments 141,810,750 154,338,010 203,895,179 194,462,967 Less restricted for: Statutory Reserve Funds 24,860,949 26,099,512 Restricted Revenue 55,271,127 51,406,819 80,132,076 77,506,331 Funds available for operational use 123,763,103 $ 116,956,636 $ The investment portfolio includes bonds of chartered banks, the Government of Canada and provincial governments; deposits and notes of chartered banks, credit unions, the Government of Canada and provincial governments; and deposits in the Municipal Finance Authority short term investment pools. 3 Accounts receivable: 2019 2018 Taxes 4,414,903 $ 4,329,339 $ Province of British Columbia 3,763,167 2,222,041 Government of Canada 463,306 1,122,431 Regional and local governments 125,386 1,472,206 Trade receivables 3,891,353 10,778,606 Accrued interest 1,206,012 1,146,383 Water trade receivables 2,850,110 2,552,684 Sewer trade receivables 3,796,125 3,744,324 Development cost charges 3,331,711 4,444,679 23,842,073 $ 31,812,693 $