City of Surrey 2019 Annual Financial Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2019 [tabular amounts in thousands of dollars]

7. DEFERRED DEVELOPMENT COST CHARGES

Development Cost Charges (DCCs) are collected to pay for development costs on specified projects. DCCs cover between 90% to 99% of those costs based on rates as recommended by the engineering department. In accordance with the Local Government Act, these funds must be held in a separate reserve fund and accumulates interest until spent. DCCs are deferred and recognized as revenue when the related costs are incurred.

2019

2018

Deferred DCCs: Arterial roads

$

78,530 58,793 45,937 30,085 19,562 18,739 54,375

$

63,430 49,422 43,637 25,965 15,800 15,893 60,988

Parkland

Drainage/storm water detention

Sanitary sewer Collector roads

Water

Area specific

2,471

Park development

2,546

$

308,492

$

277,681

Deferred DCCs, beginning of year

$

277,681 105,804

$

254,294

DCCs levied for the year

90,979

1,837

Investment income

761

107,641

Total DCCs deferred

91,740

Revenue recognized: General Capital

(62,824) (4,326) (9,680)

(52,233)

Water Capital

(5,150)

Sewer & Drainage Capital

(10,970)

(76,830)

Total DCCs recognized as revenue

(68,353)

30,811

Net increase for the year

23,387

Deferred DCCs, end of year

$

308,492

$

277,681

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