City of Surrey's 2021 - 2025 Financial Plan

CONTRIBUTION & EXPENDITURE OVERVIEW

NON-DISCRETIONARY CONTRIBUTIONS Non-discretionary contributions to the capital program include those statutory reserve funds that are restrictive in their intended use. These include the following: • Deferred Development Cost Charges (Section 566 of the Local Government Act); • Parkland Acquisition Reserve (Section 510 of the Local Government Act); and • Parking Space Reserve (Section 525 of the Local Government Act). The City requires developers to contribute to its future growth. This is achieved through Development Cost Charges (DCCs), which requires developers to pay a charge in order to develop new land. When the City collects these contributions, it deposits them into the statutory reserve fund, as listed above, until the money can be spent for the intended purpose. In addition, development applicants must contribute a portion of their land, or a cash payment in lieu of land, for parkland. When the City collects cash-in-lieu, it deposits the funds in a statutory reserve fund, Parkland Acquisition Reserve, and may only use it to purchase parkland. Contributions collected in a given year can be included as a funding source in the next and future year’s Capital Financial Plan. Each contribution can only be used for the purpose for which it was collected. For instance, Water DCCs can only be spent on a growth-related water infrastructure project. DISCRETIONARY CONTRIBUTIONS Discretionary contributions include appropriations of operating surplus, contributions from operating financial plans, or less restrictive statutory reserve funds. Operating Appropriated Surplus Non-statutory reserves within operating funds are appropriations of surplus or unappropriated surplus

revenues which City Council can, by simple majority vote, use for any capital or operating purpose. Examples of these appropriations include the following: • Operating Contingency; • Self Insurance; and • Revenue Stabilization.

City of Surrey | 2021—2025 Financial Plan | Capital Program

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