City of Surrey 2020-2024 Financial Plan

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FINANCIAL OVERVIEW OVERVIEW OF FUND STRUCTURE

The City maintains three major fund types in order to facilitate the delivery of operating and capital budgetary needs. These are: Operating, Capital and Reserve funds. The City’s Reserve Funds along with appropriated surplus reserves, which are established by Council, and committed funds assist with long-term financial stability and financial planning. Adequate levels of these various Reserve Funds, appropriated surplus reserves and committed funds provide financial flexibility, mitigate risks such as weather uncertainties, and help ensure the ongoing viability and stability of the City. These also provide leverage to enhance and sustain the City’s infrastructure needs and assist in supporting programs and municipal services to the community. The 2020 - 2024 Financial Plan consolidates the results of the City’s Operating, Capital, and Reserve Funds, as well as the surplus equity of the Surrey City Development Corporation and the Surrey Homelessness and Housing Society. Following are descriptions of these three major fund types along with a listing of funds within each type, a table illustrating the relationship between funds and departments, and the reserve fund, fund surpluses and deferred development cost charges schedule illustrating budgeted balances over the five-year financial plan. OPERATING FUNDS Operating funds are used to report the operating activities of the City. These are the primary funds for operational related municipal services and departments. Operating funds include the following:

General

Parking

Solid Waste

• • •

Library

Roads & Traffic Safety

Surrey City Energy

Drainage

Sewer

Water

CAPITAL FUNDS Capital funds are used to record the acquisition of capital assets, amortization and any related long-term debt. Capital funds include the following: