2017 Annual Report

57 City of Chilliwack 2017 Annual Report City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2017 (g) Use of estimates: The preparation of financial statements requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, and disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the period. Significant estimates include assumptions used in estimating provisions for accrued liabilities, landfill liability, contingent liabilities, the estimated useful lives of tangible capital assets and the value of contributors assets. Actual results could differ from these estimates. (h) Contaminated sites: A liability for contaminated sites is recognized when a site is not in productive use and the following criteria are met: (i) An environmental standard exists; (ii) Contamination exceeds the environmental standard; (iii) The City is directly responsible or accepts responsibility; (iv) It is expected that future economic benefits will be given up; and (v) A reasonable estimate of the amount can be made. The liability is recognized as management's estimate of the cost of post-remediation including operation, maintenance and monitoring that are an integral part of the remediation strategy for a contaminated site. 2 Restricted Assets: The City has restrictions on the portfolio investments and cash available for operational use as follows: 2017 2016 Cash 79,543,982 $ 84,892,245 $ Portfolio Investments 114,390,167 84,381,722 193,934,149 169,273,967 Less restricted for: Statutory Reserve Funds 29,379,335 27,385,299 Restricted Revenue 47,754,175 39,776,264 77,133,510 67,161,563 Funds available for operational use 116,800,639 $ 102,112,404 $ The investment portfolio includes bonds of chartered banks, the Government of Canada and provincial governments; deposits and notes of chartered banks, credit unions, the Government of Canada and provincial governments; and deposits in the Municipal Finance Authority short term investment pools. 3 Accounts receivable: 2017 2016 Taxes 7,468,838 $ 7,406,167 $ Province of British Columbia 2,696,940 2,380,862 Government of Canada 2,815,875 2,480,715 Regional and local governments 120,943 249,403 Trade receivables 4,159,088 4,690,470 Accrued interest 961,078 1,292,214 Tax sale properties subject to redemption 48,459 28,116 Water trade receivables 2,486,276 2,494,163 Sewer trade receivables 3,854,772 4,099,850 Development cost charges 4,248,561 5,200,108 28,860,830 $ 30,322,068 $ City of Chilliwack Financial Statements