2021 Annual Report

Annual Report 2021 93 92 CHILLIWACK ECONOMIC PARTNERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2021 City of Chilliwack CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2021 1. Significant accounting policies (continued): (f) Use of estimates: The preparation of the financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenue and expenses during the year. Actual results could differ from those estimates. 2. Bank operating lines: The Corporation has an operating line of credit for a maximum of $1,000,000 (2020 - $1,000,000) that is due on demand, bears interest at prime plus 0.20% (2020 - prime plus 0.20%). No funds were drawn on the line of credit as at December 31, 2021. The Corporation has a second operating line of credit for a maximum of $4,000,000 (2020 - nil) that is due on demand, bears interest at prime plus 0.20%. No funds were drawn on the line of credit as at December 31, 2021. The above lines of credit are secured by a mortgage over certain lands, a commercial security agreement, an assignment of rentals and indemnity agreement from the City for the portion of the mortgaged land owned by the City, and an assignment of insurance. 3. Property under development: 2021 2020 Canada Education Park: Land $ 1,353,755 $ 1,353,755 Roads, water, and sewer 1,709,289 1,709,289 Other improvements 195,748 195,748 3,258,792 3,258,792 Downtown Redevelopment: Land 3,904,383 627,068 Buildings 1,182,333 - Less provision for impairment - (203,900) 5,086,716 423,168 $ 8,345,508 $ 3,681,960 Included in property under development is nil (2020 - $321,421) in capitalized interest. 6 CHILLIWACK ECONOMIC PARTNERS CORPORATION NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2021 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to inancial Statements (continued) Year en ed December 31, 2021 4. Tangible capital assets: 2021 2021 opening closing cost Additions Disposals cost Buildings $ 5,225,854 $ - $ (7,235) $ 5,218,619 Leasehold improvements 158,905 - - 158,905 Computer and office equipment 162,526 4,680 - 167,206 Website 118,987 1,800 - 120,787 Telecommunication equipment 5,299 - - 5,299 Land 196,196 - - 196,196 $ 5,867,767 $ 6,480 $ (7,235) $ 5,867,012 2021 2021 Opening Closing accumulated Amortization accumulated amortization Disposals expense amortization Buildings $ 1,426,098 $ - $ 145,506 $ 1,571,604 Leasehold improvements 28,945 - 7,842 36,787 Computer and office equipment 116,842 - 2,698 119,540 Website 114,796 - 3,433 118,229 Telecommunication equipment 5,299 - - 5,299 $ 1,691,980 $ - $ 159,479 $ 1,851,459 2021 2021 Opening net Closing net book value book value Buildings $ 3,799,756 $ 3,647,015 Leasehold improvements 129,960 122,118 Computer and office equipment 45,684 47,666 Website 4,191 2,558 Telecommunication equipment - - Land 196,196 196,196 $ 4,175,787 $ 4,015,553 7

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