2026 - 2030 Surrey Financial Plan

MESSAGE FROMTHE CFO/GENERAL MANAGER, FINANCE

Due to cost increases resulting from increased Metro Vancouver tipping fee charges, and the Utility’s operating costs associated with waste collection, litter cleanup, street cleaning and beautification initiatives, a 1.2% rate increase will be applied for 2026, resulting in an annual collection rate for a single-family home of $344.08 ($340.00 in 2025). This increase to the solid waste utility rates has been reflected in the 2026-2030 Financial Plan—Self-Funded Utilities.

8.0 SURREY CITY ENERGY UTILITY FINANCIAL PLAN—SERVICE PRIORITIES

The Surrey City Energy ("SCE") Utility is the City-owned district energy system that supplies residential, commercial and institutional buildings in City Centre with heat and hot water. SCE is based on a user-pay model and is 100% self-funded by the customers. Class 1 customers include residential and mixed-use buildings where the non-residential portion of the building does not exceed 20% of the building area. Class 2 customers include any building where the non-residential portion of the building exceeds 20% of the building area. Due to a 10% increase in natural gas costs charged by Fortis BC and to meet the Utility’s ongoing operating and capital cost demands, while providing stable and competitive energy rates for its customers, the rates will increase by 6.4% in 2026. This increase enables the Utility to recover its capital and operating costs, while providing stable and competitive energy rates for its customers. This would result in an annual cost increase of $56.45 (Charge and Levy) for a 65m² (700 square foot) residential dwelling unit that consumes an average of 6.8 MWh/year of energy.

9.0 WATER UTILITY FINANCIAL PLAN—SERVICE PRIORITIES

The City adopted its Residential Water Metering Program over 25 years ago and now provides services to more than 74,500 metered water utility accounts.

The Water Utility's funding requirements are affected by the following factors:

• For 2026, the water utility metered rate per cubic metre of water consumed will be increased by $0.0709 per cubic metre or 5.3% over 2025; • Metro Vancouver water rates are projected to increase an average of 2.6% per year for each of the remaining four years of the Five-Year Plan; • Operating and maintenance cost increases; and • Capital replacement needs for aging infrastructure. The average metered single-family dwelling will pay, excluding base charges, $508.17 in 2026 ($482.65 in 2025) based on an average yearly consumption of 360 cubic meters.

This increase to the water utility rates has been reflected in the 2026-2030 Financial Plan—Self-Funded Utilities.

City of Surrey | 2026—2030 Financial Plan | Executive Overview

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