June 15, 2009 - District of Mission

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Municipal Forest — 50th Year Anniversary
Financial Statements
Notes to the Consolidated Financial Statements
for the year ended December 31, 2008
8. Fair Market Value of Financial Assets and Financial Liabilities
For certain of the District's financial instruments, including cash, receivables, and accounts
payable, the carrying amounts approximate fair market value due to the immediate or shortterm
maturity of these financial instruments.
The fair market value of the Portfolio Investments approximates the carrying value (including
accrued interest of the various instruments, based on quoted year-end market bid prices). The
fair market value of the Mortgage Investments and the long and short-term debt approximates
their carrying value, as the interest rates approximate borrowing rates available for loans under
similar terms and maturities.
9. Regional Water and Sewage Systems
Prior to January 1, 2005, water supply and distribution and sewage treatment were provided to
Mission and Abbotsford by the Fraser Valley Regional District (FVRD), who held the assets of
the systems in trust for the District of Mission and the City of Abbotsford. The assets, liabilities
and equities of the existing systems were transferred from the FVRD to Mission and
Abbotsford, effective January 1, 2005. Mission and Abbotsford now jointly govern and
administer the systems, pursuant to the Water Supply and Distribution and Sewage Treatment
Systems Ownership and Governance Agreement.
For any given year, ownership of any portion of the assets of the systems constructed, partially
constructed, or purchased during a year, is based on a percentage of each of Mission and
Abbotsford, calculated by measuring the sewage flow for the sewage system, and the water
flow for the water system for Mission and Abbotsford for the preceding year.
Any disposition of assets of the joint water and sewer systems is permitted only with the joint
consent of the parties, and the proceeds of such disposition is divided between Mission and
Abbotsford, based on Mission's and Abbotsford's actual ownership of each asset of the system,
as reflected in the financial statements of both Mission and Abbotsford.
Operating revenues and expenditures for any year of the joint water services agreement is also
based on a percentage calculated by measuring the water flow for each of Mission and
Abbotsford for the preceding year. Operating revenues and expenditures for any year of the
joint sewer services agreement is also based on a percentage calculated by measuring the
sewage flow for each of Mission and Abbotsford for the preceding year.
The District's share of revenues and expenditures was as follows:
2008 2007
Water System 23.99% 22.12%
Sewage System 20.76% 21.76%
The District's ownership share of the water and sewage capital assets was as follows:
2008 2007
Water System 21.68% 21.55%
Sewage System 18.40% 18.07%
2008 Annual Report - District of Mission
37-1