2018 Annual Financial Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2018 [tabular amounts in thousands of dollars]

12. COMMITMENTS AND CONTINGENCIES (CONTINUED) f) Debt Reserve Fund Demand Note (Continued)

Demand note amounts are as follows:

DRF Demand Note

Issue

LA

SI

Rgn SI

Purpose

Term

116 116 116 121 126 126

17173 17180 17231 17231 17928 17929

R10-2022 R10-2357 R11-124 R11-124 R13-1059 R13-1061

1139 1141 1142 1142 1188 1188

Other Other Other Other Other Other

25 25 25 25 30 30

$

319 637

1,035

743 943 280

Total

$ 3,957

g) Policing services The City entered into a contract with the Provincial Government that provides for the Royal Canadian Mounted Police (“RCMP”) to deliver policing services for the City through to March 31, 2032. On November 5, 2018, at the first Regular Council Meeting of the October 20, 2018 elected Mayor and Council, Council unanimously approved a motion to direct staff to commence work on creating a Surrey Police Department and serve notice that the City of Surrey will be terminating its contract with the RCMP municipal police service. Contractual rights are rights to economic resources arising from contracts or agreements that will result in revenues and assets in the future. The significant contractual rights that existed at December 31, 2018 are as follows: a) Lease revenue The City has entered into a number of fixed term lease agreements for the use of City owned land and/or buildings that are anticipated to provide the City with future revenues. These agreements are for terms that vary from 1 to 25 years. The following table summarizes the contractual rights of the City for future assets:

13. CONTRACTUAL RIGHTS

2019

2020

2021

2022

Thereafter

Lease revenue

$

6,289

$

5,667

$

5,185

$

4,707

$

27,178

b) Developer contributions The City has entered into a number of public works development agreements which require the developers to contribute various infrastructure assets to the City, including roads and underground utilities. The timing and extent of these future contributions vary depending on development activity and fair value of the assets received at time of contribution, which cannot be determined with certainty at this time.

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