13.
Pension plans: The Association participates in a multi-employer defined contribution pension plan whereby the Association and participating employees contribute equal amounts to the maximum allowed under the Income Tax Act. The Association has no unfunded liability under this plan. During the year, the Association recorded $3,564,000 (2008 - $3,362,000) of expense relating to this plan. During the year, there were no significant changes to the rates of employer contributions. In addition, on January 1, 2003, the Association established a supplemental defined contribution employee retirement plan. For the financial year ended October 31, 2009, an expense and related liability of $123,200 (2008 - $57,300) has been recorded relating to this plan.
14.
Commitments and guarantees: (a)
Lease commitments: The Association is committed to minimum lease payments under operating lease agreements for buildings and equipment over the next five years and beyond, as follows: 2010 2011 2012 2013 2014 Subsequently
(b)
$
10,861 11,242 10,292 10,042 9,825 87,565
$
139,827
Utility service commitment: The Association has an annual commitment to purchase electricity at fixed rates per KWH to the end of financial year 2010 of approximately $3,200,000. The Association has an annual commitment to purchase natural gas at fixed rates per GJ to the end of the financial year 2010 of approximately $1,400,000.
(c)
Petroleum product purchase commitment: Under the terms of the agreement with FCL, the Association has committed to purchase petroleum products, at market price, from FCL for gas bar operations over a ten-year period commencing from the date of gas bar completion. Failure to meet this commitment would require the Association to pay outstanding gas bar loan balances owed to FCL plus repay any gas bar grants received, as described in note 2(c), plus interest on the grants, compounded annually at 10% from the grant date. The total outstanding loan balances are disclosed in note 10(b). Total grants received over the prior ten year period amount to approximately $15,000,000 (2008 - $15,300,000).
(d) Guarantee: The Association has committed to purchase a minimum level of product from a supplier at market prices, and should this minimum not be purchased, a liability becomes due. This agreement, signed in 2000, has not resulted in any shortfall to date and it is management’s opinion that this will be the case throughout the duration of the contract to 2010. The maximum liability would be $87,000 in 2010. (e)
Lease revenues: Minimum future revenues from operating leases on commercial real estate rentals are: 2010 2011 2012 2013 2014
$
5,475 4,884 4,683 3,797 2,572
2009 Annual Report | 29