2018 Annual Report

City of Chilliwack 65 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2018 (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, the disclosure of contingent assets and liabilities and reported amounts of revenues and expenses as at the date of the financial statements. Significant estimates include assumptions used in estimating provisions for accrued liabilities, landfill post-closure liability, contingent liabilities, estimated useful lives of tangible capital assets and the value of assets contributed to the City. 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: 2018 2017 Cash 40,124,957 $ 79,543,982 $ Portfolio Investments 154,338,010 114,390,167 194,462,967 193,934,149 Less restricted for: Statutory Reserve Funds 26,099,512 29,379,335 Restricted Revenue 51,406,819 47,754,175 77,506,331 77,133,510 Funds available for operational use 116,956,636 $ 116,800,639 $ 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: 2018 2017 Taxes 4,329,339 $ 7,468,838 $ Province of British Columbia 2,222,041 2,696,940 Government of Canada 1,122,431 2,815,875 Regional and local governments 1,472,206 120,943 Trade receivables 10,778,606 4,159,088 Accrued interest 1,146,383 961,078 Tax sale properties subject to redemption - 48,459 Water trade receivables 2,552,684 2,486,276 Sewer trade receivables 3,744,324 3,854,772 Development cost charges 4,444,679 4,248,561 31,812,693 $ 28,860,830 $