CITY OF CHILLIWACK | 2024 Annual Report 96 97 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 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2024 12 Collections for other governments: The City collects and remits taxes on behalf of other government jurisdictions as follows: 2024 2023 B.C. Assessment Authority 1,546,316 $ 1,494,105 $ Fraser Valley Regional Hospital District 3,821,854 3,694,089 Municipal Finance Authority 8,603 8,509 Ministry of Education 57,605,826 54,197,174 Fraser Valley Regional District 3,342,152 2,758,144 66,324,751 $ 62,152,021 $ These taxes are not included in revenues within the Consolidated Statement of Operations and Accumulated Surplus of the City. 13 Contingent liabilities: (a) The City, as a member of the Fraser Valley Regional District, is responsible for its proportion of any operating deficits or long term debt related to functions in which it participates. Any liability which may arise as a result will be accounted for in the period in which the required payment is made. (b) The City is currently engaged in certain legal actions. Of the claims the City is defending, certain claims are covered by the City's insurers and/or other parties. The City accrues for claims for which the amounts are known or can be reasonably estimated. The outcome of other claims is undeterminable at this time and, accordingly, no provision has been made for these actions. (c) The City 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, 2023, the 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 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 an unfunded actuarial liability. The most recent actuarial valuation for the Municipal Pension Plan as of December 31, 2021, indicated a $3,761 million funding surplus for basic pension benefits on a going concern basis. The City expensed $3,932,454 (2023 - $3,226,740) for employer contributions to the Plan in fiscal 2024. The next valuation will be as at December 31, 2024. 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. (d) The City has issued various letters of credit on behalf of the Department of Fisheries and Oceans totalling $924,920 (2023 - $853,243) 14 Fair value of financial assets and financial liabilities: The fair value of the City's cash, accounts receivable, accounts payable, accrued liabilities and refundable deposits approximate their carrying amounts due to the immediate or short term maturity of these financial instruments. The fair value of portfolio investments at December 31, 2024 was $178,087,636 (2023 - $148,982,092). Included in the fair market estimate is accrued interest of $3,124,605 (2023 - $3,065,916), which is reported within accounts receivable. The next valuation will be as at December 31, 2024. 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. (d) The City has issued various letters of credit on behalf of the Department of Fisheries and Oceans totalling $924,920 (2023 - $853,243) 14 Fair value of financial assets and financial liabilities: The fair value of the City's cash, accounts receivable, accounts payable, accrued liabilities and refundable deposits approximate their carrying amounts due to the immediate or short term maturity of these financial instruments. The fair value of portfolio investments at December 31, 2024 was $178,087,636 (2023 - $148,982,092). Included in the fair market estimate is accrued interest of $3,124,605 (2023 - $3,065,916), which is reported within accounts receivable. 15 Commitments: In 2004, the City of Chilliwack entered into a 25 year agreement with the Chilliwack Chiefs Development Group Ltd. (CDG) for the provision of community priority time in the Chilliwack Coliseum. As part of the agreement, the City pays $400,000 annually to CDG for the operation of the facility and $175,000 as a reimbursement for revenues collected directly by the City, City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2024 16 Contractual rights: The City has entered into contracts for various property rentals and leases, and is scheduled to receive the following amounts under those contracts: Year Amount 2025 1,901,002 2026 1,376,438 2027 1,066,816 2028 1,062,055 2029 267,303 Thereafter 116,662 5,790,276 $ 17 Budget figures: The operating and capital budget figures, presented on a basis consistent with that used for actual results, were approved by Council as the 2024 Financial Plan Bylaw 2024, No. 5372. The chart below reconciles the approved budget to the budget figures reported in these financial statements. 2024 Budget Revenues Operating budget $ 216,111,900 Capital budget Development cost charges 47,208,500 Contributed tangible capital assets 6,594,000 Statutory reserve funds 17,527,000 Operating reserves 48,791,200 Current operations 11,137,500 Government grants and transfers 31,618,500 Total revenue per approved budget 378,988,600 Add: CEPCO 1,562,706 Tourism 2,441,757 The next valuation will be as at December 31, 2024. 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. (d) The City has issued various letters of credit on behalf of the Department of Fisheries and Oceans totalling $924,920 (2023 - $853,243) 14 Fair value of financial assets and financial liabilities: The fair value of the City's cash, accounts receivable, accounts payable, accrued liabilities and refundable deposits approximate their carrying amounts due to the immediate or short term maturity of these financial instruments. The fair value of portfolio investments at December 31, 2024 was $178,087,636 (2023 - $148,982,092). Included in the fair market estimate is accrued interest of $3,124,605 (2023 - $3,065,916), which is reported within accounts receivable. 15 Commitments: In 2004, the City of Chilliwack entered into a 25 year agreement with the Chilliwack Chiefs Development Group Ltd. (CDG) for the provision of community priority time in the Chilliwack Coliseum. As part of the agreement, the City pays $400,000 annually to CDG for the operation of the facility and $175,000 as a reimbursement for revenues collected directly by the City,
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