City of Surrey's 2024 Annual Financial Report

increase Surrey’s housing supply in both the short and long-term. The Action Plan targets a 27.8% increase in housing supply, aiming for an average of 4,283 net dwellings issued annually and a cumulative total of 12,850 by December 2026. At the end of 2024, the City had issued 6,028 net housing units, surpassing the year one target by 1,745 dwellings. This represents 46.9% of the three-year target, positioning the City well for achieving its overall goal. The City provides a welcoming environment for businesses to grow and succeed. Business license revenue increased by 5.0% in 2024, as compared to the prior year. Surrey is rapidly becoming a thriving metropolitan centre and a hub of innovation. Business opportunities abound in many sectors including advanced manufacturing, clean technology, film & television, and agritech. In July 2024, the provincial government and the City of Surrey reached an agreement that will complete the transition to the Surrey Police Service (“SPS”) by providing oversight, accountability and cost mitigation for residents and businesses in Surrey. Through the agreement, the Province will provide $30.0 million per year to assist with policing transition costs until 2028. The agreement also provides a financial guarantee of as much as $20.0 million per year based on an “Actual Salary Cost Differential” calculation, as defined in the agreement, performed each year from 2029 to 2034. The funding from the Province will help to lessen the financial impact of the policing transition on Surrey taxpayers. On November 29, 2024, SPS assumed responsibility for policing and law enforcement as the City of Surrey’s new police of jurisdiction, the next phase in the City’s ongoing transition to a municipal police service.

In 2024, the City’s financial position increased by $257.6 million resulting in a net financial asset position of $1.02 billion. The City’s non-financial assets increased in 2024 by $342.7 million, bringing the total to $10.60 billion. The increase is the net result of capital additions of physical assets in the year, offset by disposals and amortization expense. The result of these increases in financial position and non-financial assets was accumulated surplus increasing by $600.3 million in 2024 to $11.62 billion (2023 - $11.02 billion). Overall, the City continues to maintain a strong financial position.

CONSOLIDATED STATEMENT OF OPERATIONS For the year ended December 31 (amounts in $ millions)

2024 Budget

2024 Actual

Change

$ 1,736.6

Revenues Expenses

$ 1,650.6 $

86.0

(1,136.3)

(1,026.4)

(109.9)

$ 600.3

Annual Surplus

$

624.2 $

(23.9)

The City’s revenues in 2024 totaled $1.74 billion, which is an increase compared to revenues of $1.65 billion in 2023. The year-over-year growth was attributable to increased Taxation revenue ($48.4 million), Development cost charges (“DCC”) revenue ($44.2 million), Sales of goods and services ($31.9 million), Investment income ($26.7 million), and Other ($0.4 million). These increases were partially offset by decreased Transfers from other governments ($58.6 million) and Developer Contributions revenue ($6.8 million). The year-over-year decrease in Transfers from other governments is primarily attributable to the one-time lump sum receipt of $89.9 million of Growing Communities Fund (“GCF”) provincial grant funding in 2023. This reduction was offset by the 2024 provincial policing funding contribution of $28.9 million. During the period in 2024 preceding finalization of the contribution agreement between the parties, the province utilized a portion of the $30.0 million payable to the City to disburse funding directly to third party service providers for police transition related project management services. The 2024 payment of $28.9 million is net of the amounts directly disbursed by the province to third parties. Taxation revenue increased due to physical growth of taxable properties, commensurate with Surrey’s ongoing population growth. A property tax rate increase implemented in 2024 raised additional revenues to fund public safety resources in Policing, Fire Services, Bylaw Services, and other general operating needs, including on-going and additional staffing and operating costs, labour and inflationary cost increases, and other various corporate requirements. DCC revenue increased as a function of revenue recognition from various DCC reserves to fund various capital infrastructure projects and purchases of parkland for future development.

Financial Position

CONSOLIDATED STATEMENT OF FINANCIAL POSITION For the year ended December 31 (amounts in $ millions)

2024 Actual

2023 Actual

Change

$ 2,548.7

Financial Assets

$ 2,271.8 $

276.9

(1,528.8) 1,019.9 10,590.5

Liabilities

(1,509.5)

(19.3)

Net Financial Assets Tangible Capital Assets Inventories of Supplies

762.3

257.6 340.8

10,249.7

1.6

1.8 8.5

(0.2)

10.6

Prepaid Expenses

2.1

10,602.7

Non-Financial Assets Accumulated Surplus

10,260.0

342.7

$ 11,622.6

$ 11,022.3

$ 600.3

Financial position is calculated as financial assets less liabilities and results in either a net financial asset or a net financial debt. A net financial asset position is an indicator of the funds available for future expenditures, and a net financial debt position is an indicator of funds required to pay for past expenditures.

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