City of Surrey's 2024-2028 Financial Plan

GLOSSARY

Capital Assets—Assets of long-term character that are intended to be held or used, such as land, buildings, machinery, furniture, and other equipment. These assets have a significant value and a useful life of several years. Capital assets are also called Fixed Assets. Capital Budget—The appropriation of internal and external contributions for improvements and additions to facilities, infrastructure, and parks. Capital Expenditure—Expenditures approved in the Capital Budget related to the acquisition, expansion or rehabilitation of an element of the City's Capital Assets. Capital Legacy Fund—A statutory reserve fund established by Council to provide a renewable internal financing source for one-time General Capital projects with a broad-based community support. Capital Operating and Surplus—Amounts transferred to/from one fund to another fund or to/from deferred revenue or reserve accounts. Capital Project—Major construction, acquisition, or renovation activities which add value to the City's physical assets or significantly increase their useful life; also called Capital Improvements. Capital Reserve—An account used to segregate a portion of the City's equity to be used for future capital program expenditures. Contingency—A budgetary reserve set aside for emergencies or unforeseen expenditures not otherwise budgeted. Contractual Services—Services rendered to the City by private firms, individuals, or other governmental agencies. Examples include rent, leases, maintenance agreements, and professional consulting services. Debt Service—The cost of paying principal and interest on borrowed money according to a payment schedule. Deficit—The excess of an entity's liabilities over its assets or the excess of expenditures over revenues during a single accounting period. Department—The basic organizational unit of the City, which is functionally unique in its delivery of services. Depreciation—Expiration in the service life of Capital Assets attributable to wear and tear, deterioration, exposure to elements, inadequacy, or obsolescence. It is also known as amortization. Development Cost Charges (“DCC”)—Fees and charges contributed by developers to support development and growth in the City.

City of Surrey | 2024—2028 Financial Plan | Glossary

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