CITY OF CHILLIWACK | 2024 Annual Report 118 119 2024 Annual Report | CITY OF CHILLIWACK CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2024 CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2024 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2024 12. 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 of December 31, 2023, the Municipal Pension Plan has about 256,000 active members and approximately 129,000 retired members. Active members include approximately 45,000 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 $40,332 (2023 - $38,632) for employer contributions to the plan in fiscal 2023. The next valuation will be as at December 31, 2024, with results available in 2025. 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. 12 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2024 13. 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. CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2024 13. Segmented information (continued): The following table outlines the Corporation's revenues and expenses by operating segments: Rent and contracted Economic services development 2024 2023 Revenues: Rent $ 683,839 $ - $ 683,839 $ 681,529 Economic development - 650,000 650,000 600,000 Government programs 10,000 - 10,000 361,327 Contracted services - 186,560 186,560 189,286 Property management - 7,958 7,958 58,256 Interest - 40,710 40,710 30,588 Other revenue - 8,000 8,000 8,000 693,839 893,228 1,587,067 1,928,986 Expenses: Wages and benefits 107,221 428,884 536,105 516,140 Downtown redevelopment 36,334 - 36,334 167,919 Amortization of tangible capital assets 148,382 - 148,382 159,315 Contracted services 132,510 - 132,510 127,826 Marketing - 58,530 58,530 78,821 Insurance - 66,335 66,335 66,987 Rent 10,000 40,000 50,000 50,000 Common area costs 16,623 33,246 49,869 48,858 Office and administration 46,062 - 46,062 48,065 Repairs and maintenance 32,445 - 32,445 39,512 Professional fees 7,724 30,897 38,621 34,170 Premise operating costs 9,580 19,160 28,740 29,612 Utilities 13,843 - 13,843 13,816 Interest and bank charges 528 1,056 1,584 1,406 561,252 678,108 1,239,360 1,382,447 Annual surplus $ 132,587 $ 215,120 $ 347,707 $ 546,539 14
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