CITY OF CHILLIWACK 2025 Annual Report 80 81 2025 Annual Report CITY OF CHILLIWACK 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 9 Government grants and transfers Included in government grants and transfers are Canada Community-Building Fund Agreement Funds of $4,307,304 (2024 - $4,307,304). Canada Community-Building Fund funding is provided through a tripartite Agreement between Canada, British Columbia and the Union of British Columbia Municipalities. This funding provides predictable, long-term and stable funding to local governments in British Columbia for investment in infrastructure and capacity building projects. Funding may be used towards eligible investment categories that include productivity and economic growth, clean environment, strong cities and communities and capacity building projects as specified in the funding agreement. The Province of British Columbia distributed conditional GCF grants to communities at the end of March 2023 to help local governments build community infrastructure and amenities to meet the demands of population growth. The GCF provided a one-time total of $1 billion in grants to all 161 municipalities and 27 regional districts in British Columbia. The City of Chilliwack received $16,392,000 of GCF funding in March 2023. Growing Communities Fund 2025 2024 Balance, beginning of year 14,915,197 $ 15,502,878 $ Less: eligible costs Public safety/emergency management equipment and facilities (799,576) (188,567) Active transportation amenities (870,516) (387,561) Park upgrades and amenities (58,000) (561,915) Recreational facilities (1,776,908) (337,547) Add: interest earnings 500,615 887,909 Growing Communities Fund Surplus, End of Year 11,910,812 $ 14,915,197 $ 10 Accumulated surplus: Accumulated surplus consists of individual fund surplus, statutory reserves and surplus invested in tangible capital assets as follows: 2025 2024 Operating Funds Unrestricted: General 14,750,082 $ 13,915,477 $ CEPCO 1,632,010 1,843,211 Tourism 1,637,793 1,649,264 Water Fund 3,443,430 3,450,000 Sewer Fund 3,560,000 3,560,000 Building - Protective Services 484,779 2,957 Landfill 20,465,962 20,458,265 Sewer future works 13,011,983 9,436,510 Water future works 17,586,032 12,864,096 Work-in-progress 8,387,900 7,522,300 Soil removal 296,043 437,286 Canada Community-Building Fund Agreement funds 15,216,545 15,362,672 Other 13,156,656 10,739,845 113,629,215 101,241,883 Statutory Reserve Funds General Capital 11,001,923 12,947,246 Equipment Replacement 4,046,750 6,599,020 Growing Communities 11,910,812 14,915,198 Streetscape Improvements 114,002 - Subdivision Control 1,516,965 1,454,749 28,590,452 35,916,213 Investment in Tangible Capital Assets & Property Under Development General 592,174,256 571,168,294 Solid Waste 9,935,781 12,023,081 Water 136,063,543 138,043,852 Sewer 201,657,817 191,797,999 CEPCO 14,341,600 13,504,133 Tourism 76,805 36,042 954,249,802 926,573,401 1,096,469,469 $ $ 1,063,731,497 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 11 Collections for other governments: The City collects and remits taxes on behalf of other government jurisdictions as follows: 2025 2024 B.C. Assessment Authority 1,619,569 $ 1,546,316 $ Fraser Valley Regional Hospital District 4,384,512 3,821,854 Municipal Finance Authority 8,705 8,603 Ministry of Education 59,926,805 57,605,826 Fraser Valley Regional District 3,604,548 3,342,152 69,544,139 $ 66,324,751 $ These taxes are not included in revenues within the Consolidated Statement of Operations and Accumulated Surplus of the City. 12 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, 2024, the plan has about 273,000 active members and approximately 133,000 retired members. Active members include approximately 47,000 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, 2024, indicated a $2,675 million funding surplus for basic pension benefits on a going concern basis. The next valuation will be as at December 31, 2027. The City expensed $4,168,246 (2024 - $3,932,454) for employer contributions to the Plan in fiscal 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. (d) The City has issued various letters of credit on behalf of the Department of Fisheries and Oceans totalling $924,920 (2024 - $924,920) 13 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, 2025 was $182,840,413 (2024 - $178,087,636). Included in the fair market estimate is accrued interest of $2,855,636 (2024 - $3,124,605), which is reported within accounts receivable. 14 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:
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