Annual Report 2021 81 80 CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2021 City of Chilliwack City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2021 16 Financial risks The City is exposed to financial risks from its use of finaicial instruments. Management does not believe that the City's financial instruments are exposed to significant liquidity risk. Market risk is the risk where changes in market prices, such as interest rates, can affect the City's income. The City's cash and portfolio investments include amounts on deposits with financial institutions that earn interest at market rates. The City 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 City's income. Credit risk is the risk that one party to the financial instrument will cause a financial loss for the other party by failling to discharge an obligation. Management does not believe that the City is exposed to significant credit risk. The carrying value of cash, accounts receivable, and accounts payable and accrued liabilities approximate their fair value due to the relatively short periods of maturity of these items. There has been no change to the risk exposures outlined above from 2020 other than the pervasive impact of the ongoing COVID-19 pandemic, of which, may lead to adverse changes in cash flows and working capital levels, which may also have a direct impact on the City's operating results and financial position in the future. The situation is dynamic and the ultimate duration and magnitude of the impact on the economy and the financial effect on the operations is not known at this time. 17 Segmented information: The City is a diversified municipal government institution that provides a wide range of services to its citizens, including Protective Services; Transportation Services; Landfill Operations; Water and Sewer Services; Recreation and Cultural Services and Environmental Development Services. For management reporting purposes, the Government’s operations and activities are organized and reported by Service Areas. Service Areas were created for the purpose of recording specific activities to attain certain objectives in accordance with regulations, restrictions or limitations. General Government Services General government services include all activities associated with adopting bylaws, mayor and council support, financial management, municipal facilities and the cost effective delivery of services. Items included are Mayor and Counci, administration, clerks and legislative services, corporate services, management information systems, graphical information systems, finance and procurement and maintenance of municipal facilities. Protective Services Protective services includes all activities associated with community safety including the enforcement of laws and the prevention of crime. Items include police protection, fire protection, bylaw enforcement, emergency services and building inspection. Engineering, Transportation and Public Works Services Engineering, transporation and public works services include all activities associated with transportation including roads and drainage networks. Items included are services of the engineering department, traffic services, street lighting, transit, winter snow and ice control, maintenance and to roads, road shoulders, open drainage, storm sewers and dykes. Solid Waste and Environmental Services Solid waste and environmental services include all activities associated with solid waste and environmental health. Items include landfill operations, special waste programs, clean up campaigns, operation of the Green Depot and the curbside collection and recycling programs. Water and Sewer Services Water and sewer services include all activities associated with water and sanitary sewer operations. Items included are maintenance and enhancements of the water supply system, water pumps stations, water distribution system, water meters, hydrants, sanitary sewer collection system, sewer lift stations, and sewer treatment and disposal. Parks, Recreation and Cultural Services Parks, recreation and cultural services include all activities associated with parks, recreation and cultural activities and operations. Items include costs associated with Evergreen Hall, Landing Sports Centre, Rotary Pool, Cheam Centre, Leisure Centre, Prospera Centre, Heritage Park, Great Blue Heron Nature Reserve, Grandstands, Cultural Centre, community fee for services, parks and trails, urban trees and plantings, sports fields, and libraries. Planning and Development Services Planning and development services include all activities associated with community planning and economic development. Items include costs associated with community planning, development, economic development and tourism activities. The following table outlines the City's revenues and expenses by operating segment: CITY OF CHILLIWACK NOTES TO CONSOLIDATED FINANCIAL STATEMENTS Year Ended December 31, 2021 City of Chilliwack Notes to Consolidated Financial Statements Year Ended December 31, 2021 Table of Segmented Information: Engineering Parks General Protective Transportation Solid Waste & Water & Recreation Planning & Government Protective & Public Works Environmental Sewer & Culture Development Interest & Services Services Services Services Services Services Services Other 2021 2020 Revenues Municipal taxation and grants-in lieu of taxes 92,976,704 $ - $ - $ - $ 22,640 $ - $ - $ - $ 92,999,344 $ 88,836,848 $ Government grants & transfers 4,769,780 3,444,452 2,112,723 - 312,419 41,640 2,805,328 - 13,486,342 13,859,661 Sales of services 1,658,293 110,845 1,188,739 14,648,646 25,125,595 1,861,436 1,629,568 - 46,223,122 43,555,490 Licences, permits, penalties and fines 897,320 160,713 - - - - 4,065,713 - 5,123,746 4,156,607 Return on investments 1,538,088 - - - 367,429 - 15,682 385,253 2,306,452 2,768,944 Development cost charges - - 16,018,914 - 3,026,210 1,276,839 - - 20,321,963 26,199,731 Developer and other contributions - - 6,532,434 - 1,014,839 - - - 7,547,273 7,807,282 Other revenue 596,132 308,870 1,230,703 32,385 273,347 - 52,594 - 2,494,031 1,900,338 102,436,317 4,024,880 27,083,513 14,681,031 30,142,479 3,179,915 8,568,885 385,253 190,502,273 189,084,901 Expenses Salaries and benefits 7,468,709 14,817,930 5,442,366 812,689 5,636,362 4,572,440 3,642,374 - 42,392,870 41,313,331 Goods and services 4,991,147 33,020,591 14,678,489 9,867,114 7,528,099 15,695,288 3,897,345 - 89,678,073 81,991,775 Administration allocation (2,110,000) - - - 2,110,000 - - - - - Interest and other - - - - - - - 348,408 348,408 352,951 Amortization of tangible capital assets 1,142,345 997,670 6,501,129 2,201,417 8,926,063 3,854,961 257,755 - 23,881,340 23,447,370 Transfer of collections - - - - - - 339,600 - 339,600 318,661 11,492,201 48,836,191 26,621,984 12,881,220 24,200,524 24,122,689 8,137,074 348,408 156,640,291 147,424,088 Annual Surplus Before Other 90,944,116 (44,811,311) 461,529 1,799,811 5,941,955 (20,942,774) 431,811 36,845 33,861,982 41,660,813 Other revenues (expenses) Gain (loss) from disposal of tangible capital assets (976,065) - - - (279,048) - - - (1,255,113) 213,139 Annual Surplus (Deficit) 89,968,051 $ (44,811,311) $ 461,529 $ 1,799,811 $ 5,662,907 $ (20,942,774) $ 431,811 $ 36,845 $ 32,606,869 $ 41,873,952 $
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