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
130
(d) Agreements and Contracts
The District has entered into various agreements and contracts for services and
construction. The District has approximately $3.3 million in commitments as at December
31, 2008, ($3.6 million as at December, 31, 2007), for capital projects which have not been
recorded. The funding for the majority of these obligations has been set aside in reserves
and deposits and will be used in the period the goods and/or services are constructed or
acquired.
11. Landfill Leachate Breakout
In February of 2006, a leachate (contaminated water) breakout occurred at the District's landfill
site as a result of heavy rains and a rise in the ground water table. Since the breakout
occurred, the District has completed various short-term remediation works at the site and has
conducted numerous studies to determine a final resolution to this problem. As the final
resolution, including costs, are yet to be determined, no provision has been made in these
financial statements for this item. These amounts will be recorded in the year the goods and/or
services are constructed or acquired.
12. Letters of Credit
In addition to the performance deposits reflected in cash balances, the District is holding
irrevocable Letters of Credit in the amount of approximately $6.87 million as at December
31, 2008 ($6.75 million in 2007), which were received from various parties to ensure the
parties complete various works within the District. These amounts are not reflected in the
financial statements but are available to satisfy any liability arising from non-performance
by the parties. The District is also holding irrevocable Letters of Credit as security against
development cost charges receivable in the amount of $150,855 as at December 31, 2008
($432,184 in 2007).
13. Federal Gas Tax Agreement
The following is a schedule of receipts and disbursements for the Federal Gas Tax Agreement
funds:
2008 2007
Opening balance of unspent funds $979,490 $575,402
Add: Amount received during the year 489,854 380,345
Interest earned 54,200 39,742
Less: Amount spent (55,603) (15,609)
Amount spent on administration (1,390) (390)
Closing balance of unspent funds $1,466,551 $979,490
Gas Tax funding is provided by the Government of Canada. The use of the funding is
established by a funding agreement between the District and the Union of British Columbia
Municipalities. Gas Tax funding may be used towards designated public transit, community
energy, water, wastewater, solid waste and capacity building projects, as specified in the
funding agreement. For further information on the Gas Tax see schedule 5 (Reserve Funds).
2008 Annual Report - District of Mission
39 1