City of Surrey 2017 - 2021 Financial Plan

Economic Overview

Development Cost Charges (“DCCs”) collected in 2016 were approximately 35% higher than those collected in 2015; 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. Building Permit Revenues also had another strong year, with a year-over -year increase of approximately 5%. This strong performance is another indication that the City had a very strong overall development year. Furthermore, Building Permit revenue typically is a strong indicator of future revenues for the City in the form of new taxation revenues. These new taxation revenues are critical to the City’s financial health and in part support investments in

DCCs collected to December 31/16 (in millions)

$- $10 $20 $30 $40 $50 $60 $70 $80 $90

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter

2012 2013 2014 2015 2016

Building Permit Revenue to December 31/16 (in millions)

$10 $12 $14 $16

4th Quarter 3rd Quarter 2nd Quarter 1st Quarter

$2 $4 $6 $8

$-

2012 2013 2014 2015 2016

various projects such as new recreational facilities. It is noted that the last two months of 2016 saw a modest decrease in Building Permit Revenue compared to the same period last year; however it is difficult to determine if this is an indicator of a significant long term market change or not. Staff will

be monitoring Building Permit Revenue closely in early 2017.

Business Licence Revenue New & Renewals to December 31/16 (in thousands)

Business License revenue for 2016 increased by 6.5% from last year to approximately $6.9 million dollars, due in part to new growth and staff educating local vendors . This revenue stream is very critical for the City’s financial health both directly and indirectly in that as new business are attracted to the City and are successful they will typically inject further investments into the local economy, including creating new jobs.

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

$-

2012 2013 2014 2015 2016

2017-2021 FINANCIAL PLAN

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