June 15, 2009 - District of Mission

Municipal Forest — 50 th Year Anniversary
Notes to the Consolidated Financial Statements
for the year ended December 31, 2008
Financial Statements
126
4. Municipal Finance Authority Debt Reserve Fund
The District issues its debt instruments through the Municipal Finance Authority. As a condition
of these borrowings, a portion of the debt proceeds are withheld by the Municipal Finance
Authority, in a debt reserve fund. The District also executes demand notes in connection with
each debt issue whereby the District may be required to loan certain amounts to the Municipal
Finance Authority. These demand notes are contingent in nature. The balances of the cash
deposits and demand notes as at December 31, 2008, are as follows (includes Mission's share
of regional utilities cash deposits and demand notes):
Cash
Deposits
Demand
Notes
Total
Debt Reserve
General Operating Fund $223,701 $543,964 $767,665
Sewer Utility Operating Fund 42,905 99,878 142,783
Water Utility Operating Fund 43.315 102,492 145.807
Total 5309,921 $746,334 $1,056,255
5. Accounts Payable and Accrued Liabilities
Accounts Payable and Accrued Liabilities consist of the following:
2008 2007
Accounts Payable $5,725,698 $4,331,616
Wages and Benefits Payable 879,394 777,366
Landfill Closure and Post-Closure Costs 449,758 439,554
Total $7,054,850 $5,548.536
The District's landfill site is regulated by the BC Ministry of Environment, and as such the
District is subject to certain operating, closure and post-closure obligations at the site.
The costs associated with landfill closure and post-closure care, are to be recognized over the
operating life of the landfill site as per PSAB standards. The District has estimated and
recognized a liability of $449,758 as at December 31, 2008, for future estimated closure and
post-closure costs at the landfill site. The estimated total expenditures for closure and postclosure
care are approximately $16.5 million, with approximately $16 million remaining to be
recognized. There are currently no assets designated for settling the landfill closure and postclosure
care liability.
The landfill closure and post-closure care cost liability is based on the discounted costs
associated with the phased closure of various landfill cells and environmental monitoring for 25
years after the landfill is closed. Approximately 70% of the landfill capacity remains, and the
landfill is predicted to reach capacity around 2048. See note 11 (Landfill Leachate Breakout)
for further information in relation to the landfill site.
2008 Annual Report - District of Mission
I 35 I