2018 Annual Report

City of Chilliwack 85 CHILLIWACK ECONOMIC PARTNERS CORPORATION Notes to Financial Statements (continued) Year ended December 31, 2018 6. Accumulated surplus: Accumulated surplus consists of the following: 2018 2017 Share capital (note 7) $ 100 $ 100 Equity in tangible capital assets and property under development 8,350,131 10,258,690 Unrestricted equity 5,285,333 3,854,912 $ 13,635,564 $ 14,113,702 7. Share capital: 2018 2017 Issued and authorized with no par value: 100 Common shares $ 100 $ 100 8. Related party transactions and economic dependence: During the year, the City of Chilliwack (the "City") provided $550,000 (2017 - $550,000) in revenue for economic development purposes. No property taxes were paid on any land owned by the Corporation as it is exempt as a result of the indirect land ownership by the City. During the year, the Corporation transferred property with a net book value of $1,870,105 to the City for no consideration (2017 - cash transfer of $350,000). A member of the Corporation's Board is a partner in a legal firm to which the Corporation paid $535 (2017 - $29,009) in legal fees during the year. 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. 9