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TOURISM CHILLIWACK INC.
Notes to Financial Statements (continued)
Years ended December 31, 2011 and 2010
7. Related party transactions and economic dependence:
During the year, the City of Chilliwack (the "City") provided a $130,000 (2010 - $130,000)
operating grant. The City has agreed to provide future annual operating grants based on a pre-
determined formula.
The Company is a wholly-owned subsidiary of the City.
8. Financial instruments:
The carrying value of cash, long-term investments, accounts receivable, accounts payable and
accrued liabilities approximate their fair value due to the relatively short periods to maturity of
these items.
9. Income taxes:
The Company is exempt from income taxes under Section 149 of the Income Tax Act, Canada.
10. Employee future benefits:
The Company and its employees contribute to the Municipal Pension Plan (Plan), a jointly
trusteed pension plan. The Board of Trustees, representing plan members and employers, is
responsible for overseeing the management of the Plan, including investment of the assets and
administration of benefits. The pension plan is a multi-employer contributory pension plan. Basic
pension benefits provided are defined. The plan has about 150,000 active members and
approximately 54,000 retired members. Active members included approximately 32,000
contributors from local government.
Every three years an actuarial valuation is performed to assess the financial position of the Plan
and the adequacy of the Plan funding. The most recent valuation as at December 31, 2009
indicated an underfunded liability of $1,024 million for basic pension benefits. The next valuation
will be as at December 31, 2012, with results available in 2013. The actuary does not attribute
portions of the surplus to individual employers.
Tourism Chilliwack Inc.
Financial Statements
2011 City of Chilliwack Annual Report
76