City of Surrey's 2021 - 2025 Financial Plan

CONTRIBUTION & EXPENDITURE OVERVIEW

Preservation of Previous Investments in Capital

Replacement of Worn-out or Obsolete Assets Aging capital assets require more maintenance and upkeep. Major maintenance is designed to restore assets to the state they were in when the original investment was made. The need to maintain assets often receives less attention than the need for new facilities. However, timely maintenance work is important. Consider, for example, the The City can save costs in the long run by replacing aged assets instead of repairing or maintaining them, as newer assets are often more technologically-advanced and energy efficient. Reserve Funds are one source of funding used to pay for the replacement of worn-out or obsolete assets.

City’s extensive network of roads. Timely road repaving allows the City to avoid large scale rehabilitation work. Delaying repaving merely defers an even larger

fiscal investment to future years. Contributions from operating are normally required to pay for this maintenance work.

The reserves are established and replenished by transferring funds from general revenue. When management decides an asset needs to be replaced, it seeks budget authority through the current year's budget process.

Meeting the Demands of Growth

Each year the City’s population increases as more people choose to call Surrey their home. This increase results in heightened demand on the City’s financial resources to pay for facilities and other capital infrastructure that meets the City’s standards and is acceptable to residents.

Surrey's population, as of December 2020, is estimated at 580,360 residents with a growth rate expected of 1.4% to 1.5% over the next ϔ ive years.

New Projects

Construction of large facilities, such as libraries, recreation centres, arenas, indoor pools, and fire halls, involves a significant capital investment and cannot be funded in the same way as statutory and asset maintenance projects. There are always more potential projects than there is available funding.

Many proposed projects compete for the City’s limited resources. The City’s capital planning process helps to prioritize these new projects, with Council central to the decision process.

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

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