COS Financial Plan 2018 - 2022

ECONOMIC OVERVIEW

SURREY’S FINANCIAL PERFORMANCE 2017 continued to be a strong year for the residential sector throughout the entire Lower Mainland, with the City of Surrey being no exception. The City continued to experience increases in market values from the previous year along with strong residential development, primarily in the multi-family sector. Year over year, the residential sales market decreased in total number of units sold confirming that the real estate market has cooled slightly, due in part to more stringent requirements for mortgage qualification by the banking sector and the implementation of various tax strategies by the provincial government to improve housing affordability. Commercial and industrial development activity were stable compared to the previous year with the industrial sector showing relative strength and projected to provide growth in future years as Surrey continues to have available industrial lands and opportunities for growth relative to other municipalities in the Metro Vancouver area. The City continues to undertake a number of large-scale capital projects to accommodate and support anticipated business and residential growth. These projects include a new recreation and cultural facility in Clayton, a new Cloverdale twin ice surface facility, a replacement facility for the arena in North Surrey, the second phase of the Surrey Museum expansion, various park additions and expansions, and a partnership with the YMCA to deliver recreation services in the City Centre. In addition, the City constructed an Organics Biofuel facility that will process organic waste into natural gas, fuelling waste collection trucks as well as other natural gas vehicles within the City. This Biofuel facility, expected to become fully operational in 2018, will be Canada’s largest biofuel facility.

Development Cost Charges (DCCs) collected in 2017 were approximately 35% higher than those collected in 2016; the collection of DCCs is correlated to the volume and type of Planning Applications that are submitted, however due to the fact that DCCs are typically collected at the building permit stage, there can be a notable time lag between an application and the receipt of the associated DCCs.

DCCs collected to (in millions) December 31, 2017

$0 $10 $20 $30 $40 $50 $60 $70 $80 $90 $100

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2017

the future lives here.

2018-2022 Financial Plan

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