2016-2020_Financial_Plan_Web

Economic Overview

The outlook for the BC LNG industry is uncertain as natural gas prices have tumbled in recent months to $8 per million BTUs. Analysts have estimated BC’s cost of production to be $12 per million BTUs. One LNG project recently received a facility permit from the provincial government and a 40-year export licence from the National Energy Board. However, a final investment decision from this proponent still remains outstanding.

Consumer Price Index 2012 ‐ 2016

+2.5%

+2.0%

+1.5%

+1.0%

+0.5%

Canada USA BC

+0.0%

‐0.5%

2012 Actual

2013 Actual

2014 Actual

2015 Forecast

2016 Forecast

Other projects are at various stages in the process but still face challenges such as financial viability, environmental concerns, and unresolved issues with First Nations.

SURREY’S FINANCIAL PERFORMANCE

The robust regional real estate market in 2015 supported an overall strong development environment in both the residential and commercial sectors within the City. Throughout the year, the continued expansion of City Centre was evident, a strong example being the intense sales activity surrounding public sales of condominium units in a residential tower located just west of City Hall in the spring of 2015. In addition to this tower, two new permits for high rises were submitted to the City. Commercial and Industrial development activity was also relatively strong during the year with significant applications submitted for the Campbell Heights and King George corridor areas. Furthermore, active commercial projects including the large scale redevelopment of the site adjacent to the King George SkyTrain station, that will include the new home for Coast Capital Savings, were finalized. The City also celebrated the public opening of Guildford Pool during the year. This world class facility is a landmark recreational venue for the Guildford town centre, and will play a critical role in attracting new young families to the area for many years to come. In addition to the Guildford Pool, the City also opened its new Operations Centre in 2015; this new facility is home to various City staff including: Engineering Operations, Parks Operations and By-Law Enforcement.

2016-2020 FINANCIAL PLAN

54