City of Surrey's 2024-2028 Financial Plan
DEBT
The City of Surrey’s gross borrowing capacity, based on the criteria under section 174 of the Community Charter, equates to approximately $2.7 billion of debt, while outstanding consolidated external borrowing on December 31, 2023 was $308.5M. Of this external borrowing, $276.2M relates to debt acquired through the Municipal Finance Authority of BC (“MFA”) for long-term capital projects. The remaining balance of $32.3M relates to 25-year capital financing for the Surrey Biofuel Facility. The City has previously undertaken significant capital investments to meet the needs of our growing community. The 2024 - 2028 Financial Plan advances capital initiatives that will deliver amenities and infrastructure which will benefit everyone who lives, works, or plays in Surrey. The latest Five-Year Plan includes enhanced investment in the Cloverdale Sport and Ice Complex, Newton Community Centre, and City Centre Sports Complex (Phase 1). The most recent external borrowing, undertaken in 2021, consisted of $150.6M accessed through the MFA Long-Term Borrowing program to fund three major capital projects. In addition to external borrowing, various other sources fund capital projects including, Community Amenity Contributions, contributions from General Operating, City Reserves, Gaming Revenue, and External Contributions (Grants). MFA has operated as a cooperative municipal bank for BC's local governments since 1970. They were formed under the Municipal Finance Authority Act but operate independently of the Province of BC. MFA currently holds the highest credit rating possible from three major rating agencies:
Commercial Paper Debenture Debt Reports
Moody's Investor Service
P-1
Aaa (Stable)
2023
Standard & Poor's
A-1+
AAA (Stable)
2023
Fitch Ratings
not rated
AAA (Stable)
2023
City of Surrey | 2024—2028 Financial Plan | Financial Overview
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