2017 Finance Annual Report

REPORT FROMTHE GENERAL MANAGER, FINANCE

MAY 7, 2018 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, 2017. 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 BDO Canada 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, 2017, 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.

FINANCIAL OVERVIEW

2017 in Review The City continued its investment in civic facilities in 2017, with design and construction advancement for multiple projects including the new Cloverdale Sport and Ice Complex, North Surrey Sport and Ice Complex and the Clayton Hub, which will incorporate integrated arts, library, recreation and outdoor space in a single facility to serve the communities of East and West Clayton. In the residential development sector, the trend towards the construction of multi-family dwellings has continued into 2017, as single family property values continue to increase. The City Centre continues to attract large scale residential projects including low-rise and high-rise developments; all reflective of the continued growth in our population, which in, turn leads to strong housing demand. The City also commenced early design work in preparation for the Light Rail Transit (LRT) project which will underpin our City’s transit network for years to come and will shape our current and future neighbourhoods. The City’s revenues in 2017 totaled $1,024.3 million, which is an increase in comparison to revenues of $914.7 million collected in 2016. This increase was attributable primarily to additional property taxes, utility fees, licenses, permits, development cost charges and developer contributions. The additional revenue generated from the increased property related fees and taxes were required to support a $13.4 million budgeted increase in public safety along with a $15.6 million budgeted increase in support for necessary labour and inflationary cost increases and other various corporate funding requirements. The City’s expenses totaled $737.2 million in 2017, which was an increase in comparison to expenses of $698.8 million in 2016. This increase was primarily attributable to an increase in the RCMP contract, increases in parks, recreation and culture programming, and increases in the cost of roads and traffic safety, sewer, and solid waste.

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