2016-2020_Financial_Plan_Web

Message from the General Manager, Finance andTechnology

8.0 SURREY CITY ENERGY UTILITY FINANCIAL PLAN - ISSUES AND PRIORITIES

The Surrey City Energy (SCE) Utility has been structured to be a self-sustaining fund that will supply heating, cooling and hot water to high-density new construction in the City. In July 2014, Council approved the establishment of a third-party Expert External Rate Review Panel to assist staff and Council in the oversight of SCE’s rates and rate structure. The Panel conducted a full review of the long-term financial plan, rate structure, and 2016 rates and has provided a letter of endorsement in support of the 2016 rates. The average residential customer will pay $768.60 in 2016, based on an average unit size of 70m 2 and annual consumption of 7.35 MWh/year. The first customers began receiving service in early 2016.

9.0 WATER UTILITY FINANCIAL PLAN - ISSUES AND PRIORITIES

The Water Utility is a self-sustaining fund; any projected funding requirements are met by a corresponding increase in user fees. Over the last several years, the City has been moving towards a fully ‘metered’ approach for recovering the costs of the water utility, with the eventual aim of retiring the ‘flat rate’ system and having all properties on water meters.

The Water Utility’s funding requirements are affected by the following factors:

 Greater Vancouver Regional District’s (GVRD) projected water rate increases; and  Contractual labour and energy cost increases.

To meet these funding requirements, water rates will increase in 2016 and beyond. The average metered single family dwelling will pay $401 in 2016 ($385 in 2015) based on an average yearly consumption of 360 cubic metres.

10.0 GENERAL CAPITAL FINANCIAL PLAN - ISSUES AND PRIORITIES

Since 2010, the City has undertaken a number of large-scale capital projects across the City to accommodate and support anticipated business and residential growth. The City has invested over $466 million to date. The 2016 - 2020 Financial Plan includes a further $273 million investment over the next five years. The funding for these projects will be primarily through internal borrowing. These projects include a new recreation and cultural facility in Clayton, additional ice surfaces in Cloverdale, the replacement of the arena in North Surrey, expansion of our district energy system, an Urban Park in Newton, additional space for our RCMP members and the addition of the second phase of the Surrey Museum. The City has ongoing capital requirements of over $16.0 million per year. The City must also fund minor capital projects including improved lighting at various recreation centers, equipment and security upgrades as well as recreation facility entrance improvements. Additional details of planned capital projects can be found in the Capital Program section of this document.

2016-2020 FINANCIAL PLAN

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