100 City of Chilliwack CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2022 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2022 1. Significant accounting policies (continued): (e) Budget figures: Budget figures represent the budget approved by the Board of Directors on December 8, 2021. (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 (2021 - $1,000,000) 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, 2022. The Corporation has a second operating line of credit for a maximum of $4,000,000 (2021 - $4,000,000) 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, 2022. 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: 2022 2021 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 3,991,564 3,904,383 Buildings 1,839,743 1,182,333 - - 5,831,307 5,086,716 $ 9,090,099 $ 8,345,508 6 CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2022 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2022 4. Tangible capital assets: 2022 2022 opening closing cost Additions Disposals cost Buildings $ 5,218,619 $ 11,333 $ - $ 5,229,952 Leasehold improvements 158,905 - - 158,905 Computer and office equipment 167,206 - - 167,206 Website 120,787 - - 120,787 Telecommunication equipment 5,299 - - 5,299 Land 196,196 - - 196,196 $ 5,867,012 $ 11,333 $ - $ 5,878,345 2022 2022 Opening Closing accumulated Amortization accumulated amortization Disposals expense amortization Buildings $ 1,571,604 $ - $ 144,316 $ 1,715,920 Leasehold improvements 36,787 - 7,843 44,630 Computer and office equipment 119,540 - 10,735 130,275 Website 118,229 - 2,403 120,632 Telecommunication equipment 5,299 - - 5,299 $ 1,851,459 $ - $ 165,297 $ 2,016,756 2022 2022 Opening net Closing net book value book value Buildings $ 3,647,015 $ 3,514,032 Leasehold improvements 122,118 114,275 Computer and office equipment 47,666 36,931 Website 2,558 155 Telecommunication equipment - - Land 196,196 196,196 $ 4,015,553 $ 3,861,589 7 Annual Report 2022 101
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