2017 Finance Annual Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2017 [tabular amounts in thousands of dollars]

7. DEFERRED DEVELOPMENT COST CHARGES

Development Cost Charges (DCCs) are collected to pay for 95% of the general capital costs due to development and 90% of utility capital costs on specified projects. In accordance with the Local Government Act, these funds must be recorded in a separate reserve fund. DCCs are deferred and recognized as revenue when the related costs are incurred.

2016

2017

Deferred DCCs: Arterial roads

$

67,446 51,638 38,561 26,474 17,431 13,156 49,757

$

67,322 28,171 41,668 23,823 18,758 14,713 57,040

Parkland

Drainage/storm water detention

Sanitary sewer Collector roads

Water

Area specific

Park development

2,505

2,799

$

266,968

$

254,294

$

239,631

Deferred DCCs, beginning of year

$

266,968

DCCs levied for the year

87,398

91,108

Investment income

1,199

1,181

Total DCCs deferred

88,597

92,289

Revenue recognized for General Capital Revenue recognized for Water Capital

(41,464)

(86,516)

(4,063)

(3,980)

Revenue recognized for Sewer & Drainage Capital

(15,733) (61,260)

(14,467)

Total DCCs recognized as revenue

(104,963)

Net increase (decrease) for the year

27,337

(12,674)

$

266,968

Deferred DCCs, end of year

$

254,294

54