88 City of Chilliwack CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2022 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2022 16 Financial risks The City is exposed to financial risks from its use of finaicial instruments. Management does not believe that the City's financial instruments are exposed to significant liquidity risk. Market risk is the risk where changes in market prices, such as interest rates, can affect the City's income. The City's cash and portfolio investments include amounts on deposits with financial institutions that earn interest at market rates. The City manages its cash by maximizing the interest income earned on excess funds while maintaining the liquidity necessary to conduct operations on a day-to-day basis. Fluctuations in market rates of interest would not have a significant effect on the City's income. Credit risk is the risk that one party to the financial instrument will cause a financial loss for the other party by failling to discharge an obligation. Management does not believe that the City is exposed to significant credit risk. There has been no change to the risk exposures outlined above from 2021. 17 Segmented information: The City is a diversified municipal government institution that provides a wide range of services to its citizens, including Protective Services; Transportation Services; Landfill Operations; Water and Sewer Services; Recreation and Cultural Services and Environmental Development Services. For management reporting purposes, the Government’s operations and activities are organized and reported by Service Areas. Service Areas were created for the purpose of recording specific activities to attain certain objectives in accordance with regulations, restrictions or limitations. General Government Services General government services include all activities associated with adopting bylaws, mayor and council support, financial management, municipal facilities and the cost effective delivery of services. Items included are Mayor and Counci, administration, clerks and legislative services, corporate services, management information systems, graphical information systems, finance and procurement and maintenance of municipal facilities. Protective Services Protective services includes all activities associated with community safety including the enforcement of laws and the prevention of crime. Items include police protection, fire protection, bylaw enforcement, emergency services and building inspection. Engineering, Transportation and Public Works Services Engineering, transporation and public works services include all activities associated with transportation including roads and drainage networks. Items included are services of the engineering department, traffic services, street lighting, transit, winter snow and ice control, maintenance and to roads, road shoulders, open drainage, storm sewers and dykes. Solid Waste and Environmental Services Solid waste and environmental services include all activities associated with solid waste and environmental health. Items include landfill operations, special waste programs, clean up campaigns, operation of the Green Depot and the curbside collection and recycling programs. Water and Sewer Services Water and sewer services include all activities associated with water and sanitary sewer operations. Items included are maintenance and enhancements of the water supply system, water pumps stations, water distribution system, water meters, hydrants, sanitary sewer collection system, sewer lift stations, and sewer treatment and disposal. Parks, Recreation and Cultural Services Parks, recreation and cultural services include all activities associated with parks, recreation and cultural activities and operations. Items include costs associated with Evergreen Hall, Landing Sports Centre, Rotary Pool, Cheam Centre, Leisure Centre, Prospera Centre, Heritage Park, Great Blue Heron Nature Reserve, Grandstands, Cultural Centre, community fee for services, parks and trails, urban trees and plantings, sports fields, and libraries. Planning and Development Services Planning and development services include all activities associated with community planning and economic development. Items include costs associated with community planning, development, economic development and tourism activities. The following table outlines the City's revenues and expenses by operating segment: CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2022 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2022 Table of Segmented Information: Engineering Parks General Protective Transportation Solid Waste & Water & Recreation Planning & Government Protective & Public Works Environmental Sewer & Culture Development Interest & Services Services Services Services Services Services Services Other 2022 2021 Revenues Municipal taxation and grants-in lieu of taxes $ 97,959,181 - $ - $ - $ 7,279 $ - $ - $ - $ $ 97,966,460 $ 92,999,344 Government grants & transfers 7,190,233 7,012,005 1,275,034 321,082 58,390 46,510 1,048,894 - 16,952,148 13,486,342 Sales of services 1,686,398 41,920 1,512,493 16,669,430 27,511,942 2,318,351 1,978,426 - 51,718,960 46,223,122 Licences, permits, penalties and fines 1,000,011 34,185 147,963 - - - 3,831,192 - 5,013,351 5,123,746 Return on investments 2,863,726 - - - 586,377 - 23,613 493,536 3,967,252 2,306,452 Development cost charges - - 9,793,546 - 484,125 1,829,704 - - 12,107,375 20,321,963 Contributed tangible capital assets - - 1,343,747 - - - - - 1,343,747 7,547,273 Other revenue 440,837 311,612 1,651,217 7,537 80,200 34,204 58,395 - 2,584,002 2,494,031 111,140,386 7,399,722 15,724,000 16,998,049 28,728,313 4,228,769 6,940,520 493,536 191,653,295 190,502,273 Expenses Salaries and benefits 7,804,638 16,291,955 5,258,904 735,736 5,668,020 4,916,428 4,155,307 - 44,830,988 42,392,870 Goods and services 6,494,047 35,674,729 15,450,946 12,396,366 11,427,518 17,909,136 2,431,353 - 101,784,095 89,678,073 Administration allocation (2,250,000) - - - 2,250,000 - - - - - Interest and other - - - - - - - 618,240 618,240 348,408 Amortization of tangible capital assets 1,171,443 964,054 8,995,426 406,211 9,216,381 3,752,680 224,548 - 24,730,743 23,881,340 Transfer of collections - - - - - - - - - 339,600 13,220,128 52,930,738 29,705,276 13,538,313 28,561,919 26,578,244 6,811,208 618,240 171,964,066 156,640,291 Annual Surplus Before Other 97,920,258 (45,531,016) (13,981,276) 3,459,736 166,394 (22,349,475) 129,312 (124,704) 19,689,229 33,861,982 Other revenues (loss) Loss disposal of tangible capital assets (1,824,801) - - - (29,197) - - - (1,853,998) (1,255,113) Annual Surplus (Deficit) $ 96,095,457 (45,531,016) $ (13,981,276) $ $ 3,459,736 $ 137,197 (22,349,475) $ $ 129,312 $ (124,704) $ 17,835,231 $ 32,606,869 Annual Report 2022 89
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