City of Surrey's 2024-2028 Financial Plan

FINANCIAL PLANNING PROCESS

PRINCIPLES SPECIFIC TO OPERATING FINANCIAL PLANNING

Ensure that current revenues support current programs. The Financial Plan should provide for current programs to be funded from current revenues with reserves used only as a temporary balancing measure. Any usage of reserves should be accompanied by a subsequent budgeted replenishment. Reward cost-effective innovations. The Financial Plan should reward cost saving initiatives through a "save and invest" philosophy rather than a “spend it or lose it” approach. This philosophy allows City departments to reinvest their savings from innovation.

Maintain appropriate level of reserves as determined by Council. The Financial Plan should allocate an appropriate level of funds to reserves in order to maintain services throughout economic cycles. Specifically, the Financial Plan should: • Provide adequate funding for unforeseen costs and revenue reductions; • Provide bridge financing for capital projects; and • Allow the City to take advantage of market opportunities.

INFLATIONARY INCREASES USED FOR FINANCIAL PLANNING Departments have been provided with the following additional inflationary increases, as provided by City vendors or estimated by City staff:

2024

2025

2026

2027

2028

Greater Vancouver Regional District Water Fund 7.6%

8.9%

6.4%

3.5%

2.7%

Sewer Fund

17.5%

13.1%

8.2%

6.5%

7.9%

Electricity vendors General and Utility Funds

2.7%

2.8%

2.9%

3.0%

3.0%

Natural Gas vendors

General and Utility Funds

2.0%

2.1%

2.1%

2.2%

2.3%

City of Surrey | 2024—2028 Financial Plan | Executive Overview

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