City of Surrey 2019 Annual Financial Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2019 [tabular amounts in thousands of dollars]

3. INVESTMENTS (CONTINUED)

a) City investments had an average portfolio yield of 2.66% (2018 – 2.40%). All City investments can be liquidated on demand but may have associated penalties on liquidation. b) SCDC investments includes term deposits that had an average portfolio yield of 2.35% (2018 – 2.07%) along with GICs with a maturity date of September 17, 2020 and a yield of 1.90% (2018 – 1.90%). c) SHHS investments includes a diversified portfolio of fixed income and equity securities held by SHHS with an average yield rate of 14.96% (2018 – (2.22%)), for the purpose of supporting programs and projects related to reducing homelessness and increasing access to safe and affordable housing in Surrey. d) SCDC’s joint-venture partnership in Beedie Limited Partnership (“Beedie LP”) meets the criteria of a government business partnership and therefore the results are accounted for under the modified equity method. This represents the City’s net investment in the joint venture. Beedie LP is a partnership in the business of real estate investment and development of a build-to-suit industrial building in the City that has been occupied by a tenant under a long-term lease. The liability of SCDC is limited to the cash and land which it contributed to Beedie LP. e) During 2013, SCDC invested in a 20% ownership of Bosa Properties (Bright A.1) Limited Partnership (“Bosa”). SCDC does not share control of Bosa and accordingly, this has been accounted for as a portfolio investment, carried at cost. On August 29, 2019, SCDC disposed of its 20% ownership interest in the Bosa LP for net proceeds of $3.0M, which resulted in a net gain on sale of $2.6M.

4. ACCOUNTS PAYABLE AND ACCRUED LIABILITIES

2019

2018

$

69,208 51,526 38,800 28,663 11,682 19,876

Trade accounts payable

$

70,268 47,991

Due to Federal Government

-

Due to TransLink (Note 9)

28,007 17,068

Employee future benefits (Note 10)

Contractors’ holdbacks

Due to Regional Districts

9,373 4,076 2,336 2,009

5,576 2,804 2,009

Due to Province of British Columbia

Due to other government entities

Interest payable on debt

$

230,144

$

181,128

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