City of Surrey 2017 - 2021 Financial Plan

Economic Overview

Consumer Price Index 2013 - 2017

The Softwood Lumber Trade Agreement, signed with the US in 2006, recently expired. The US lumber coalition filed a petition with the US Department of Commerce on the basis that Canadian lumber is being sold in

+3.0%

+2.5%

+2.0%

+1.5%

the US at less than fair value. The Department of Commerce’s preliminary findings state that there is reasonable indication that Canadian lumber subsidies harm American producers. The US is the largest market for BC softwood lumber with exports of $4.7 billion in 2016. Higher trade barriers and duties may be imposed later this year, leading to possible job losses and mill closures. -0.5% +0.0% +0.5% +1.0% 2013 Actual 2014 Actual

2017 Forecast Canada USA BC

2015 Actual

2016 Forecast

Source: Bank of Montreal Economics

Woodfibre LNG has made a final investment decision to build a $1.6 billion plant near Squamish. Construction is expected to commence once permit approval from the BC Oil and Gas Commission is granted.

SURREY’S FINANCIAL PERFORMANCE

2016 proved to be a very strong year for the residential sector throughout the entire Lower Mainland, with the City of Surrey being no exception. The City experienced significant increases in both sales numbers and values from the previous year, with the peak of the market activity occurring during the summer. During the last half of the year, the residential market stabilized and in some parts of the City cooled slightly, due in part to more stringent requirements for mortgage qualification by the banking sector and the implementation of a “Foreign Buyers” tax by the Provincial Government. Overall however, the prices for single family homes within the City are generally still notable higher when compared to last year. Commercial and Industrial development activity was slightly lower this year compared to the previous year but still considered healthy, with new activity experienced in all parts of the City. 2016 also celebrated the public opening of Surrey’s newest and largest aquatic facility- Grandview Heights Aquatic Centre. This state of the art, world class facility includes a 10 lane, 50m FINA-standard Olympic size competitive pool, a 500 square meter leisure and life-style pool and world class diving facilities. The facility also provides a state of the art fitness and weight training room.

2017-2021 FINANCIAL PLAN

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