2023 Annual Report

Consolidated Financial Statements Notes to the Consolidated Financial Statements

6. D e b t R ese r ve Fund : The Municipal Finance Authority of British Columbia (MFA) provides capital financing for regional districts and their member municipalities. As part of each loan issuance, 1% of the gross debt proceeds are held back by the MFA to form the MFA's Debt Reserve Fund (DRF). The amounts in the DRF are held in trust for each borrower by the MFA, as protection against borrower default. Upon maturity of each debt issue, the DRF and any interest earned is discharged to the borrower. The City has estimated that there is only a remote possibility that these funds will not be recovered and therefore these funds have been reported at $ 1,1 82 , 509 for 2023, ($1,146,868 for 2022 ). 7. Accounts P aya b le and Acc r ued L ia b ilities 202 3 2022 Accounts P aya b le : General $ 13, 957 , 979 $ 11,227,440 Other Governments 1 5 ,4 92 , 7 1 9 14,401,385 Salaries and Wages 5 , 0 4 5 ,1 79 1,344,351 34,4 95 , 877 26,973,176 Acc r ued L ia b ilities : Vacation Pay 1, 005 , 2 4 6 1,071,537 Other Employment Benefits 1,1 8 4, 000 1,066,331 2 ,1 89 , 2 4 6 2,137,868 $ 3 6 , 685 ,1 2 3 $ 29,111,044 Asset R eti r ement O b ligations The City controls a number of tangible capital assets with specific obligations related to their eventual retirement or disposal. Following the adoption of PS 3280 - Asset Retirement Obligations, the City recognized this obligation as at January 1, 2022. The recognition of these obligations involved an accompanying increase to the related tangible capital assets and the restatement of prior year numbers. (see Note 25) The initial amount at inception of the estimated asset retirement obligation is amortized over the expected remaining useful life of the related tangible capital asset. The City also operated a landfill until 1989 for which there are prescribed obligations related to the closure and post-closure monitoring of the site. Previously these future costs were accounted for in accordance with PS 3270 Solid Waste Landfill Closure and Post Closure Costs. As the landfill is no longer in productive use, opening surplus has been reduced for the adjustment to the estimated closure and post-closure costs determined on adoption of and in accordance with PS 3280. In subsequent years, the asset retirement obligations are adjusted for accretion based on the discount rate inherent in the initial estimate. Opening asset retirement obligations have been based on presently known obligations obtained through assessments or estimates using relevant unit costs. Estimated future costs have been discounted to the present value using a rate of 4.17% (2022 - 4.17%) and an inflation rate of 3.36% (2022 - 3.36%) has been used as an inflation rate for accretion expenses. The City's Asset Retirement Obligations are comprised of the following: a) . L andfill o b ligation Legislation requires closure and post closure care of solid waste landfill sites. Closure is estimated to be completed in 2031 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 include inspection and maintenance of the final covering, ground water monitoring, gas management systems operations, and annual reports. b ) . As b estos o b ligation The City owns and operates several buildings that are known to have asbestos which represents a health hazard upon demolition or renovation of the building and there is a legal obligation to remove it. The buildings were purchased or constructed in various years and the liability has been measured as of the date of purchase or the date on which the legal obligation came into effect. c) . Well decommissioning o b ligation The City has a number of wells which must be decommissioned in a prescribed matter as defined in the British Columbia Groundwater Protection Regulation. The wells were acquired or constructed in various years and the liability has been estimated at the time of acquisition or when the legal obligation came into effect. 8.

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