2020 Annual Report

For the year ended December 31, 2020 Notes to the Consolidated Financial Statements Cons lidate Financial Statements

6. Accounts Payable and Accrued Liabilities

2020

2019

Accounts Payable: General Other Governments Salaries and Wages

$

8,237,574 $ 11,368,913

8,516,981 960,069 17,714,624 4,078,820 686,557 1,133,523 5,898,900

12,029,889 2,071,496 25,470,298

Accrued Liabilities: Landfill Liability

4,078,820

Vacation Pay

547,507

Other Employment Benefits

1,029,495

5,655,822 $ 23,613,524 $ 31,126,120

The City's Landfill closed in 1989 and legislation requires closure and post closure care of solid waste landfill sites. Closure is estimated to be completed in 2030 and includes final covering, landscaping, erosion control, leachate and gas management. Post closure requirements extend for 30 years beyond completion of the closure plan and includes inspection and maintenance of the final covering, ground water monitoring, gas management systems operations, inspections and annual reports. The liability recognized in the consolidated financial statements is the present value of the expected future cash flows for the closure and post closure care activities and is subject to measurement uncertainty. The inflation rate used was 2% (2% for 2019) and the discount rate was 2.43%. (2.43% for 2019) As at the Financial Statement date a revised closure plan is being drafted for submission to the Province. It is expected that the updated plan will increase the liability. The unfunded liability for the landfill will be paid for per the annual approved Financial Plan. 7. Contingencies, Commitments and Unrecognized Liabilities: (a) Third Party Claims Where losses related to litigation are likely and can be reasonably estimated management accrues its best estimate of loss. These amounts are included in accounts payable and accrued liabilities. There are various other claims by and against the City, the outcome of which cannot reasonably be estimated. Any ultimate settlements will be recorded in the year the settlements occur and are not expected to be material. (b) Contractual Obligations In 1998 the City entered into an agreement to purchase ice sheet time for five years commencing in 1999, with five five-year renewal options. In 2018, the agreement was renewed for an additional five-year period. The minimum annual payment due for the provision of ice time is $706,000. Additional ice time is purchased separately. These payments are recorded as expenses when the ice time is provided. (c) Contingent Liability The City holds shares in an organization that provides protective services to its members. Should the organization dissolve or the City choose to withdraw from the organization the City would be liable for its proportionate share of any debt the organization held at that time. The liability is expected to be discharged over time through payments by the City and others for the provision of these services by the organization. Due to the ongoing operations of the organization the liability could only be quantified if the City chose to withdraw. Consequently no liability has been recognized in these financial statements.

City of Maple Ridge - 2020 Annual Report 49