2015 City of Surrey Annual Report

REPORT f rom the General Manager, Finance & Technology

FINANCIAL OVERVIEW 2015 in Review The construction of new facilities under the ‘Build Surrey’ Program continued to facilitate development activity throughout the City during 2015. Of particular significance was the opening of the Guildford Indoor Pool and the near completion of the Grandview Heights Indoor Pool, both of which will serve growing communities. In the residential development community, the shift toward the construction of multi-family dwellings has continued into 2015, although the City still continues to offer excellent value in the single family residential sector relative to the rest of the Greater Vancouver area. Another healthy sign of development was the significant activity in the commercial sector; this was particularly evident in the City Centre and in the Grandview Heights area. In addition, industrial development continues to show growth in the Campbell Heights area. The City’s revenues in 2015 totaled $854.6 million, which is an increase in comparison to revenues of $846.9 million collected in 2014. This increase was attributable primarily to additional property taxes, utility fees and secondary suite fees, although lower government transfers and developer contributions were recorded. The additional revenue generated from the increased property related fees and taxes was required to support a $14.2 million budgeted increase in Public Safety along with a $6.6 million budgeted increase in support for new Civic Facilities opening in 2015 and necessary labour and inflationary cost increases. The City’s expenses totaled $671.7 million in 2015, which was an increase in comparison to expenses of $656.2 million in 2014. This increase was primarily attributable to increase in the RCMP contract, reflecting the cost of new members, and increases in Parks, Recreation and Culture programming. These increases have been offset by savings in Engineering Services. While annual costs have increased, all services were able to be delivered within budget.

May 9, 2016 To Mayor Linda Hepner and Members of City Council It is my pleasure to submit the Annual Financial Report for the year ended December 31, 2015. The purpose of this report is to publish the consolidated Financial Statements and the Auditor’s Report for the City of Surrey pursuant to Section 167 of the Community Charter. The preparation of the consolidated financial statements is the responsibility of City Council and the management of the City of Surrey. The financial statements and related information have been prepared in accordance with Canadian Public Sector Accounting Standards as prescribed by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada (CPA). In addition to the City of Surrey, the reporting entity comprises all organizations, boards and enterprises financially accountable to the City of Surrey, including the Surrey Public Library, the Surrey Homelessness and Housing Society and the Surrey City Development Corporation. The public accounting firm KPMG LLP, which was appointed by City Council as the external auditor, has given the City an unqualified audit opinion on the City’s Consolidated Financial Statements, stating that in their professional opinion, the Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of the City of Surrey as at December 31, 2015 including its consolidated results of operations, its changes in net consolidated financial assets and its consolidated cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards. KPMG LLP has also stated that the City maintains a system of internal accounting controls designed to provide reasonable assurance for safeguarding the City’s assets and the reliability of financial records and documents.

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