104 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 11. Employee Future Benefits: The Corporation and its employees contribute to the Municipal Pension Plan (a jointly trusteed pension plan). The board of trustees, representing plan members and employers, is responsible for administering the plan, including investment of assets and administration of benefits. The plan is a multi-employer defined benefit pension plan. Basic pension benefits are based on a formula. As at December 31, 2021, the plan has about 227,000 active members and approximately 112,000 retired members. Active members include approximately 42,000 contributors from local governments. Every three years, an actuarial valuation is performed to assess the financial position of the plan and adequacy of plan funding. The actuary determines an appropriate combined employer and member contribution rate to fund the plan. The actuary’s calculated contribution rate is based on the entry age normal cost method, which produces the long-term rate of member and employer contributions sufficient to provide benefits for average future entrants to the plan. This rate may be adjusted for the amortization of any actuarial funding surplus and will be adjusted for the amortization of any unfunded actuarial liability. The most recent actuarial valuation for the Municipal Pension Plan as at December 31, 2021, indicated a $3,761 million funding surplus for basic pension benefits on a going concern basis. The Corporation paid $36,793 (2021 - $39,073) for employer contributions to the plan in fiscal 2022. The next valuation will be as at December 31, 2021, with results available in 2022. Employers participating in the plan record their pension expense as the amount of employer contributions made during the fiscal year (defined contribution pension plan accounting). This is because the plan records accrued liabilities and accrued assets for the plan in aggregate, resulting in no consistent and reliable basis for allocating the obligation, assets and cost to individual employers participating in the plan. 10 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2022 12. Segmented information: The Corporation is a diversified other government organization that provides a wide range of services, including: Rent and contracted services Rent includes all activities associated with the rental of buildings and land owned by the Corporation. Contracted services includes all activities related to property management services. Economic development Economic development includes all activities associated with economic development activity in Chilliwack. Annual Report 2022 105 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 12. Segmented information (continued): The following table outlines the Corporation's revenues and expenses by operating segments: Rent and contracted Economic services development 2022 2021 Revenues: Rent $ 744,497 $ - $ 744,497 $ 722,335 Economic development - 600,000 600,000 600,000 Government programs - 276,175 276,175 - Contracted services 188,748 - 188,748 363,648 Interest - 13,430 13,430 11,174 Property management - 11,623 11,623 14,506 Other revenue - 6,000 6,000 4,500 933,245 907,228 1,840,473 1,716,163 Expenses: Wages and benefits 97,923 391,691 489,614 469,037 Amortization of tangible capital assets 165,297 - 165,297 159,479 Contracted services 127,262 - 127,262 271,558 Common area costs 103,197 - 103,197 103,778 Downtown redevelopment - 102,884 102,884 101,689 Marketing - 66,122 66,122 59,617 Insurance 60,011 - 60,011 42,555 Rent 10,000 40,000 50,000 50,000 Repairs and maintenance 49,054 - 49,054 29,657 Office and administration 13,409 26,818 40,227 25,587 Premise operating costs 5,728 22,914 28,642 28,634 Professional fees 8,097 16,195 24,292 49,098 Utilities 15,078 - 15,078 15,561 Interest and bank charges 440 881 1,321 1,625 655,496 667,505 1,323,001 1,407,875 Annual surplus (deficit) before other items $ 277,749 $ 239,723 $ 517,472 $ 308,288 12
RkJQdWJsaXNoZXIy ODc2MA==