City of Surrey's 2022-2026 Financial Plan

MESSAGE FROMTHE CFO/GENERAL MANAGER, FINANCE

The Sewer Utility’s funding requirements are affected by the following factors: • Greater Vancouver Sewer and Drainage District’s (“GVS&DD”) projected increases of 6.9% for 2022 and an average of 21.4% for each of the remaining four years of the 2022 - 2026 Financial Plan; • Operating and maintenance cost increases; and • Capital replacement needs for aging infrastructure. These funding requirements will be addressed through increases in the sewer rates over the next several years. For 2022, the average metered single-family dwelling will pay $418 ($393 in 2021) for sanitary sewer, based on an average sewerage discharge of 295 cubic meters per year, calculated at 82% of the estimated volume of water consumed. 7.0 SOLID WASTE UTILITY FINANCIAL PLAN—SERVICE PRIORITIES The Solid Waste Utility provides weekly residential curbside organic waste collection with alternating bi-weekly garbage and recycling services. It also provides street sanitation services to ensure the cleanliness and beautification of the City. These services include illegal dumping collection, large item pickup program (“LIPU”), litterpickup services, Pop-Up Junk events and streetscape litter bin collection. As a means of achieving our waste diversion and illegal dumping targets by the year 2024, the City developed a comprehensive work plan that was initiated in 2017. These initiatives include: increasing participation and expanding categories of items in the LIPU collection program, implement the Single-Use Items and Plastic Packaging Strategy to reduce impacts on the environment and landfill waste, and implement various initiatives to help achieve the City’s zero waste goal. The City also processes organic waste it collects at curbside into a renewable natural gas at its biofuel facility. In 2022, Metro Vancouver tipping fee charges will increase by 3.4% ($4 per tonne) resulting in a tipping fee of $121 per tonne. Metro Vancouver is projecting that the Solid Waste Tipping Fee will increase by $7 in each of the remaining four years of the Five-Year Plan. Based on these changes, for 2022 a 2.9% increase was applied resulting in an annual collection rate for a single-family home of $316 ($307 in 2021). 8.0 SURREY CITY ENERGY UTILITY FINANCIAL PLAN—SERVICE PRIORITIES The Surrey City Energy (“SCE”) Utility is the City-owned district energy system that supplies residential, commercial and institutional buildings in City Centre with heat and hot water. SCE is based on a ‘user-pay’ model and is 100% self-funded by the customers. Class 1 customers are residential and mixed-use buildings where the non-residential portion of the building does not exceed 20% of the building area. Class 2 customers are any building where the non-residential portion of the building exceeds 20% of the building area.

City of Surrey | 2022—2026 Financial Plan | Executive Overview

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