CITY OF CHILLIWACK 2025 Annual Report 98 99 2025 Annual Report CITY OF CHILLIWACK CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2025 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2025 5. Accumulated surplus: Accumulated surplus consists of the following: 2025 2024 Share capital (note 6) $ 100 $ 100 Equity in tangible capital assets and property under development 14,330,634 13,824,561 Unrestricted equity 1,642,976 1,850,352 $ 15,973,710 $ 15,675,013 6. Share capital: 2025 2024 Issued and authorized with no par value: 100 Common shares $ 100 $ 100 7. Related party transactions and economic dependence: During the year, the City provided $650,000 (2024 - $650,000) in revenue for economic development purposes. These transactions are in the normal course of operations and are measured at the exchange amount, which is the amount of consideration established and agreed to by the parties. The Corporation is wholly-owned by the City. During the year the Corporation paid $2,223,460 (2024 – 291,058) to a company controlled by a director of the Corporation for construction related costs for property under development. This transaction was based on the fair market value of the services provided. 9 CHILLIWACK ECONOMIC PARTNERS CORPORATION (CEPCO) NOTES TO FINANCIAL STATEMENTS Year Ended December 31, 2025 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2025 8. Financial instruments: The Corporation is exposed to market risks from its use of financial instruments. Management does not believe that the Corporation's financial instruments are exposed to significant credit risk or liquidity risk. Market risk is the risk that changes in market prices, such as interest rates, will affect the Corporation's income. The Corporation's cash and investments include amounts on deposit with financial institutions that earn interest at market rates. The Corporation 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 Corporation's cash and investments. The fair value of the Corporation's cash, accounts receivable, accounts payable and accrued liabilities and unearned revenue approximate their carrying amounts due to the relatively short periods to maturity of these items. The fair value of the line of credit approximate their carrying amounts based on their market based interest rates. There has been no change to the risk exposures outlined above from 2024. 9. Income taxes: The Corporation is exempt from income taxes under Section 149 of the Income Tax Act, Canada. 10. Contractual rights: The Corporation is entitled to the following receipts under grants and rental agreements over the next three years: 2026 $ 942,422 2027 650,000 2028 650,000 $ 2,242,422 10
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