CITY OF CHILLIWACK | 2024 Annual Report 90 91 2024 Annual Report | CITY OF CHILLIWACK CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2024 CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2024 permits recognition of purchased intangibles that are acquired through an arm's length exchange transaction between willing parties provided the purchased intangible meets the recognition criteria for an asset. The adoption of this new guideline did not have an impact on the amounts presented in the financial statements (c) PS3160 Public Private Partnerships: On January 1, 2024, the City adopted Canadian public section accounting standard PS3160 Public Private Partnerships. The new accounting standard includes requirements for the recognition, measurement and classification of infrastructure procured through a public private partnership. The adoption of this new standard did not have an impact on the amounts presented in the financial statements. 3 Restricted assets: The City has restrictions on the portfolio investments and cash available for operational use as follows: 2024 2023 Cash 63,041,295 $ 86,980,019 $ Portfolio Investments 176,033,434 145,897,831 239,074,729 232,877,850 Less restricted for: Statutory Reserve Funds 35,916,213 35,173,453 Restricted Revenue 57,157,637 55,762,379 93,073,850 90,935,832 Funds available for operational use 146,000,879 $ $ 141,942,018 The investment portfolio includes bonds of chartered banks, the Government of Canada and provincial governments; deposits and notes of chartered banks, credit unions, the Government of Canada and provincial governments; and deposits in the Municipal Finance Authority short term investment pools. City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2024 4 Accounts receivable: 2024 2023 Taxes 7,685,195 $ 5,530,064 $ Province of British Columbia 7,001,778 3,383,988 Government of Canada 670,353 1,176,864 Regional and local governments 862,957 594,014 Trade receivables 13,803,782 12,673,724 Accrued interest 3,124,605 3,065,916 Development cost charges 1,716,763 494,562 34,865,433 $ 26,919,132 $ 5 Accounts payable and accrued liabilities: 2024 2023 Trade payables 21,813,185 $ 20,324,277 $ Province of British Columbia 3,959,357 3,344,737 Government of Canada 10,406,439 8,659,029 Regional and local governments 2,299,441 558,559 38,478,422 $ 32,886,602 $ 6 Development cost charges: The development cost charge liability, reported as unearned revenue, represents funds received from developers for capital infrastructure expenditures required as a result of their development projects. As these funds are expended on eligible projects, the liability is reduced and the amount expended reported as revenue. Developers are entitled to pay development cost charges (DCCs) in equal installments over two years if the total amount payable is equal to or greater than $50,000. Installments due for the next two years are included in accounts receivable and are guaranteed by the developer by providing an irrevocable letter of credit payable to the City of Chilliwack for the remaining amount of DCCs owing. As at December 31, 2024, the amount of the DCCs due over the next two years is $1,716,763 (2023 - $494,562). Assets are not physically segregated to meet the requirements of the restricted revenues. As related expenditures are incurred, revenue is recognized. 7 Asset retirement allowance: The City owns and operates several assets that are known to have asbestos or other contaminants, which represent a health hazard upon demolition or renovation of the assets. There is a legal obligation to remove and dispose of the hazardous materials. The City infrastructure also includes water wells which have a legal reported as revenue. Developers are entitled to pay development cost charges (DCCs) in equal installments over two years if the total amount payable is equal to or greater than $50,000. Installments due for the next two years are included in accounts receivable and are guaranteed by the developer by providing an irrevocable letter of credit payable to the City of Chilliwack for the remaining amount of DCCs owing. As at December 31, 2024, the amount of the DCCs due over the next two years is $1,716,763 (2023 - $494,562). Assets are not physically segregated to meet the requirements of the restricted revenues. As related expenditures are incurred, revenue is recognized. 7 Asset retirement allowance: The City owns and operates several assets that are known to have asbestos or other contaminants, which represent a health hazard upon demolition or renovation of the assets. There is a legal obligation to remove and dispose of the hazardous materials. The City infrastructure also includes water wells which have a legal obligation to decommission at the end of their use. The City also has an operating landfill that requires closure and post closure site remediation. Following the adoption of Public Accounting Standard PS 3280 Asset Retirement Obligations, the City recognized an obligation relating to the removal of hazardous materials in these assets, the decommissioning of wells and updated the landfill closure and post closure costs effective January 1, 2023. Estimated costs totaling $25,809,317 (2023 - $25,369,410) have been discounted using a present value calculation with a discount rate of 4.4% (2023 - 4.39%). The timing of these expenditures is estimated to occur between 2025 and 2239 with regular replacement, renovation, or disposal of assets. No recoveries are expected at this time. A summary of the change in the liability is as follows: 2024 2023 Opening asset retirement obligation 11,354,632 $ - $ Initial recognition of expected discounted cash flows - 10,876,887 Increase due to accretion 506,982 477,745 Remediation costs incurred - - Change in estimate 1,334,025 - Asset retirement obligations, end of year 13,195,639 $ 11,354,632 $ 8 Property under development: The property under development relates to projects of Chilliwack Economic Partners Corporation as follows: 2024 2023 Canada Education Park 3,258,792 $ 3,258,792 $ Downtown Redevelopment 6,955,762 6,495,479 10,214,554 $ 9,754,271 $
RkJQdWJsaXNoZXIy ODc2MA==