CITY OF CHILLIWACK 2025 Annual Report 82 83 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 15 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 2025 Financial Plan Bylaw 2024, No. 5449. The chart below reconciles the approved budget to the budget figures reported in these financial statements. 2025 Budget Revenues Operating budget 242,238,600 $ Capital budget Development cost charges 41,475,000 Contributed tangible capital assets 4,575,000 Statutory reserve funds 14,410,000 Operating reserves 37,603,600 Current operations 13,557,500 Government grants and transfers 18,234,500 Total revenue per approved budget 372,094,200 Add: CEPCO 1,581,766 Tourism 2,651,731 Less: Transfers from other funds (101,205,600) Inter-entity eliminations (1,245,000) Total budgeted revenue as reported 273,877,097 Expenses Operating budget 219,238,600 Capital budget 129,855,600 349,094,200 Add: CEPCO 1,133,064 Tourism 2,610,267 Amortization 23,158,853 Less: Transfers to other funds (161,765,700) Inter-entity eliminations (1,245,000) Total budgeted expenses as reported 212,985,684 Budgeted surplus as reported 60,891,413 $ 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: Year Amount 2026 760,913 2027 432,267 2028 427,506 2029 282,299 2030 227,293 Thereafter 119,182 2,249,460 $ 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 16 Financial risks The City is exposed to financial risks from its use of financial instruments. Management does not believe that the City's financial instruments are exposed to significant liquidity risk. Market risk is the risk where changes in market prices, such as interest rates, can affect the City's income. The City's cash and portfolio investments include amounts on deposits with financial institutions that earn interest at market rates. The City manages its cash by maximizing the interest income earned on excess funds while maintaining the liquidity necessary to conduct operations on a day-to-day basis. Fluctuations in market rates of interest would not have a significant effect on the City's income. Credit risk is the risk that one party to the financial instrument will cause a financial loss for the other party by failing to discharge an obligation. Management does not believe that the City is exposed to significant credit risk. There has been no change to the risk exposures outlined above from 2024. 17 Segmented information: The City is a diversified municipal government institution that provides a wide range of services to its citizens, including Protective Services; Transportation Services; Landfill Operations; Water and Sewer Services; Recreation and Cultural Services and Environmental Development Services. For management reporting purposes, the Government’s operations and activities are organized and reported by Service Areas. Service Areas were created for the purpose of recording specific activities to attain certain objectives in accordance with regulations, restrictions or limitations. General Government Services General government services include all activities associated with adopting bylaws, mayor and council support, financial management, municipal facilities and the cost effective delivery of services. Items included are Mayor and Council, administration, clerks and legislative services, corporate services, management information systems, graphical information systems, finance and procurement and maintenance of municipal facilities. Protective Services Protective services includes all activities associated with community safety including the enforcement of laws and the prevention of crime. Items include police protection, fire protection, bylaw enforcement, emergency services and building inspection. Engineering, Transportation and Public Works Services Engineering, transportation and public works services include all activities associated with transportation including roads and drainage networks. Items included are services of the engineering department, traffic services, street lighting, transit, winter snow and ice control, maintenance and to roads, road shoulders, open drainage, storm sewers and dykes. Solid Waste and Environmental Services Solid waste and environmental services include all activities associated with solid waste and environmental health. Items include landfill operations, special waste programs, clean up campaigns, operation of the Green Depot and the curbside collection and recycling programs. Water and Sewer Services Water and sewer services include all activities associated with water and sanitary sewer operations. Items included are maintenance and enhancements of the water supply system, water pumps stations, water distribution system, water meters, hydrants, sanitary sewer collection system, sewer lift stations, and sewer treatment and disposal. Parks, Recreation and Cultural Services Parks, recreation and cultural services include all activities associated with parks, recreation and cultural activities and operations. Items include costs associated with Evergreen Hall, Landing Sports Centre, Rotary Pool, Cheam Centre, Leisure Centre, Coliseum, Heritage Park, Great Blue Heron Nature Reserve, Grandstands, Cultural Centre, community fee for services, parks and trails, urban trees and plantings, sports fields and libraries. Planning and Development Services Planning and development services include all activities associated with community planning and economic development. Items include costs associated with community planning, development, economic development and tourism activities. The following table outlines the City's revenues and expenses by operating segment: 18 Comparative information: Certain comparative information has been reclassified to conform with the financial statement presentation adopted for the current year.
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