2020 Annual Report

Annual Report 2020 69 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2020 (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. Areas that contain 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: 2020 2019 Cash 84,484,095 $ 62,084,429 $ Portfolio Investments 121,198,418 141,810,750 205,682,513 203,895,179 Less restricted for: Statutory Reserve Funds 29,735,139 24,860,949 Restricted Revenue 45,162,039 55,271,127 74,897,178 80,132,076 Funds available for operational use 130,785,335 $ 123,763,103 $ 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: 2020 2019 Taxes 4,428,049 $ 4,414,903 $ Province of British Columbia 413,136 3,763,167 Government of Canada 1,034,871 463,306 Regional and local governments 110,809 125,386 Trade receivables 3,637,556 3,891,353 Accrued interest 1,038,702 1,206,012 Water trade receivables 2,793,423 2,850,110 Sewer trade receivables 3,792,846 3,796,125 Development cost charges 1,618,945 3,331,711 18,868,337 $ 23,842,073 $ CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2020