City of Surrey's 2021 - 2025 Financial Plan

ECONOMIC OVERVIEW

The total building construction value in 2020 has decreased by 37% compared to 2019. This is primarily due to a significant slowdown in construction activity in the first half of the year due to COVID-19. The latter half of the year has seen a slight turnaround in the number of permits being issued. 2019 was an exceptionally strong year and the total building construction value in 2020 was consistent with the 4 years prior to 2019 . Due to the impact of COVID-19 on the construction activity in the City, planning application fees collected in 2020 were 6% lower than those collected in 2019. Consistent with a rebound in the development activity in the latter half of 2020, planning application fees in the latter half were significantly higher than the first half of 2020. Business license revenue in 2020 increased by 7% as compared to 2019. Businesses took advantage of the Recovery Plan, which allowed for the deferral of business license payments until later in the year. This assisted with the economic recovery and allowed many businesses to continue, thereby resulting in a slight increase in business license revenues.

Total Building Construction Value ($ millions) to December 31, 2020

2,500

2,000

1,500

1,000

500

0

2016

2017

2018

2019

2020

Planning Application Fees Collected ($000s) to December 31, 2020

6,000

5,000

4,000

3,000

2,000

1,000

0

2016

2017

2018

2019

2020

Business Licence Revenue ($000s) New & Renewals to December 31, 2020

10,000

8,000

6,000

4,000

2,000

0

2016

2017

2018

2019

2020

As a result of Mayor and Council supported economic stimulus initiatives for Surrey residents and businesses, slight economic recovery, and savings from cost avoidance and vacancy gapping, the City has avoided the need to introduce any COVID-19 related further cost avoidance in the adopted 2021 - 2025 Financial Plan. The adopted Financial Plan also focuses on stimulating the local economy through its commitment to invest in short-term and long-term capital infrastructure projects. These projects will improve access to and quality of cultural and recreational facilities within the City for a long period of time.

City of Surrey | 2021—2025 Financial Plan | Financial Overview

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