CITY OF CHILLIWACK 2025 Annual Report 74 75 2025 Annual Report CITY OF CHILLIWACK CITY OF CHILLIWACK CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended December 31, 2025 City of Chilliwack Consolidated Statement of Cash Flows Year Ended December 31, 2025 with comparative information for 2024 2025 2024 Cash provided by (used for): Operating Activities: Annual surplus $ 32,737,972 $ 30,757,692 Non-cash items: Amortization of tangible capital assets 29,078,531 27,671,035 Accretion of asset retirement obligation 505,773 506,982 Developer contributions (3,853,070) (3,271,221) Loss on sale of tangible capital assets 440,876 904,744 Change in non-cash assets and liabilities: Accounts receivable (1,952,785) (7,946,301) Inventories (594,717) (198,410) Prepaid expenses 104,622 (279,266) Accounts payable and accrued liabilities 939,952 5,591,820 Development cost charges 1,715,735 3,606,583 Unearned revenue 399,439 (13,149) Refundable deposits (2,161,519) 952,952 57,360,809 58,283,461 Capital Activities: Proceeds on disposal of tangible capital assets 1,212,933 79,640 Acquisition of tangible capital assets (55,298,401) (51,705,939) Acquisition of property under development (2,272,555) (460,283) (56,358,023) (52,086,582) Investing Activities: Change in portfolio investments (2,242,409) (30,135,603) (2,242,409) (30,135,603) Decrease in cash (1,239,623) (23,938,724) Cash, beginning of year 63,041,295 86,980,019 Cash, end of year $ 61,801,672 $ 63,041,295 Non-cash transaction: Change in asset retirement obligation capitalized to tangible capital assets $ 1,722,709 1,334,025 See accompanying notes to consolidated financial statements CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2025 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2025 General: The Municipality was reincorporated as a City in 1999 by way of Letters Patent under the Municipal Act, now the Local Government Act, a statute of the Province of British Columbia. Its principal activities include the provision of local government services to the residents of the incorporated area. These services include administrative, protective, transportation, recreational, water, sewer and fiscal services. 1 Significant accounting policies: (a) Basis of presentation: It is the City of Chilliwack's (the "City") policy to follow accounting principles generally accepted for British Columbia local governments and to apply such principles consistently. These consolidated financial statements include the operations of the General, Water, Sewer and Reserve Funds and the City's wholly owned subsidiaries, Chilliwack Economic Partners Corporation ("CEPCO") and Tourism Chilliwack Inc. ("Tourism"). These consolidated statements have been prepared using standards issued by the CPA Canada Public Sector Accounting Handbook. All material interfund and intercompany accounts and transactions have been eliminated. (b) Financial instruments: Financial instruments include cash and cash equivalents, accounts receivable, accounts payable and accrued liabilities and refundable deposits. Cash and cash equivalents include cash, high interest savings accounts and short-term highly liquid investments that are readily convertible to known amounts of cash and that are subject to an insignificant risk of changes in value, including those in the Municipal Finance Authority investment short-term money market investment pool. Financial instruments are recorded at fair value on initial recognition. Equity instruments quoted in an active market and derivatives are subsequently measured at fair value as at the reporting date. All other financial instruments are subsequently measured at cost or amortized cost unless the City has elected to carry the financial instrument at fair value. The City has not elected to carry any financial instruments at fair value. Unrealized changes in fair value would be recognized on the consolidated statement of remeasurement gains and losses. They are recorded in the consolidated statement of operations when they are realized. There are no unrealized changes in fair value as at December 31, 2025 and December 31, 2024. As a result, the City does not have a consolidated statement of remeasurement gains and losses. Transaction costs incurred on the acquisition of financial instruments subsequently measured at fair value are expensed as incurred. Transaction costs incurred on the acquisition of financial instruments recorded at cost or amortized cost are included in the cost. Sales and purchases of investments are recorded on the trade date. All financial assets are assessed for impairment on an annual basis. When a decline is determined to be other than temporary, the amount of the loss is reported in the consolidated statement of operations and accumulated surplus (c) Property under development: Property under development is recorded at the lower of cost or net realizable value and includes direct costs attributable to the project plus any capitalized interest if incurred. The properties are tangible capital assets under development. (d) Tangible capital assets: Tangible capital assets are recorded on the basis of cost less accumulated amortization. Cost includes amounts that are directly attributable to acquisition, construction, development or betterment of the asset. The cost is amortized on a straight line basis over their estimated useful lives as follows: Asset Useful Life - Years Land n/a Land improvements 0-40 Buildings 40-50 Equipment 4-20 Vehicles 7-25 Engineering structures 10-100 Annual amortization is charged in the year of acquisition. Assets under construction are not amortized until the asset is available for productive use. Infrastructure related tangible capital assets that are contributed from developers as part of a development project, are recorded at fair market value at the date of contribution and recorded in revenue as developer contributions. Works of art and cultural and historic assets are not recorded as assets in these financial statements. Tangible capital assets received as contributions are recorded at their fair value at the date of receipt and also are recorded as revenue. (e) Inventories: Inventories of supplies are valued at the lower of cost and net realizable value, on a weighted average basis.
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