City of Surrey Annual Financial Report

REPORT FROMTHE GENERAL MANAGER, FINANCE

MAY 25, 2020 To Mayor Doug McCallum and Members of City Council

FINANCIAL OVERVIEW

2019 in Review The City proudly opened its newest recreation facility, the North Surrey Sport and Ice Complex in 2019. This facility offers three sheets of ice, indoor cycling, a yoga studio and a fitness centre. The City continues to invest in other civic facilities in 2020 with construction advancing at Clayton Community Centre. This facility combines arts and culture spaces like music studios, recording studios and a community rehearsal hall, with recreational spaces including a gymnasium and fitness centre, a branch library, and Park space. In addition, this centre is also designed to achieve Passive House certification, making it the first community centre to achieve Passive House in North America and Canada’s largest Passive House facility to date. Completion of the Clayton Community Centre is estimated for late 2020. North Surrey Sport and Ice Complex and Clayton Community Centre demonstrate Council’s strong desire to serve the needs of our residents for many years to come, providing families and youth with world class recreation and culture options. 2019 saw significant progress on the November 2018 motion of Council to establish an independent municipal police service. Several milestones were targeted and achieved. These include submission and public release of the Surrey Police Transition Plan to the Solicitor General which led to the City getting the “greenlight” to proceed to establishment of the Surrey Police Department. The City also participated in the Provincial Municipal Policing Transition Study Committee which finalized and submitted a comprehensive report which led to full authorization to establish a Surrey Police Board. 2019 was a record year for construction projects, enabling $2.29 billion in value of building construction, up 52% from $1.51 billion in 2018. In the residential development sector, although the number of permits were slightly lower as compared to 2018, the value of construction was higher by 36% due to more activity in townhouses and low-rise and high-rise apartment buildings as compared to 2018. Construction activity in the industrial, commercial and institutional sector was also strong as compared to 2018. The City continues to be an attractive and affordable destination for young families to settle.

It is my pleasure to submit the Annual Financial Report for the year ended December 31, 2019. The purpose of this report is to publish the Consolidated Financial Statements and the Independent Auditor’s Report for the City of Surrey, pursuant to Section 167 of the Community Charter. The preparation of the consolidated financial statements is the responsibility of City Council and the management of the City of Surrey. The financial statements and related information have been prepared in accordance with Canadian Public Sector Accounting Standards as prescribed by the Public Sector Accounting Board (PSAB) of the Chartered Professional Accountants of Canada (CPA Canada). Management is also responsible for ensuring that the City remains fiscally prudent and financially sustainable through the ongoing monitoring of all the City’s financial affairs. The City maintains a system of internal accounting controls designed to provide reasonable assurances for the safeguarding of assets and the reliability of financial records. In addition to the City of Surrey, the reporting entity comprises all organizations, boards and enterprises financially accountable to the City of Surrey. This includes the Surrey Public Library, the Surrey Homelessness and Housing Society and the Surrey City Development Corporation. The public accounting firm BDO Canada LLP, which was appointed by City Council as the external auditor, has given the City an unqualified audit opinion on the City’s Consolidated Financial Statements, stating that in their professional opinion, the Consolidated Financial Statements present fairly, in all material respects, the consolidated financial position of the City of Surrey as at December 31, 2019, including its consolidated results of operations, its changes in net consolidated financial assets, and its consolidated cash flows for the year then ended in accordance with Canadian Public Sector Accounting Standards.

40