City of Surrey's 2025 Annual Financial Report

2025, 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. The Canada Mortgage and Housing Corporation (“CMHC”) awarded the City of Surrey a $100.7 million grant under the Housing Accelerator Fund (“HAF”) program as a response to the City’s three-year Action Plan created to 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 4,333 net dwellings issued annually and a cumulative total of 13,000 by December 2026. At the end of 2025, the City had issued 10,508 net housing units, surpassing the second-year target of 8,667 dwellings. This represents 80.8% of the three-year target, positioning the City well for achieving its overall goal. Council continued with their commitment to creating more homes in every neighbourhood and making it easier to build in Surrey. The City hit a major milestone in its plan to accelerate housing delivery across the city, cutting residential building permit timelines by 75%, down from 16 weeks to just four. For residential builders, predictable timelines mean projects can start sooner and move forward with confidence. Builders now receive their security deposits back in an average of six weeks, down from six months, moving projects forward faster at a time of rising construction and financing costs. Surrey City Development Corporation (“SCDC”), a wholly owned subsidiary of the City, has been working to advance Surrey into a more modern, vibrant, sustainable, and complete city. Governed by a Board of Directors appointed by Mayor and Council, the corporation has independent financial oversight, operations, and governance. In addition to deriving financial value from real estate, SCDC has equally important “city-building” mandates to help advance the City’s critically important economic, social, physical and community objectives. To advance SCDC’s key city building developments in the immediate term, the company has broadened its approach to also target public sector support and investment. SCDC’s mandate includes spearheading the Centre Block development, partnering with Simon Fraser University (“SFU”) on the delivery of their new medical school. SCDC’s continued strategic leadership on the lands in Newton Town Centre, Campbell Heights and the Cloverdale Fairgrounds, will help shape and accelerate Surrey’s growth in positive and meaningful ways. The British Columbia (“BC”) government and the City of Surrey reached an agreement to 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 million per year to assist with policing transition costs until 2028. The agreement also provides a financial guarantee up to $20 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 during the term of the agreement. 2025 marked SPS’ first full year as the City’s new police of jurisdiction. The policing transition has entered its final phase and will be completed when SPS no longer requires assistance from the Surrey Provincial Operations

Support Unit (“SPOSU”), comprised of RCMP members supporting SPS in their transition. The timeline for this will depend on the pace of SPS hiring, infrastructure development, and file transfer.

Financial Position

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

2025 Actual

2024 Actual

Change

$ 2,783.4

Financial Assets

$ 2,548.7

$

234.7

(1,507.9) 1,275.5

Liabilities

(1,528.8)

20.9

Net Financial Assets Tangible Capital Assets Inventories of Supplies

1,019.9

255.6 384.0

10,974.5

10,590.5

2.1

1.6

0.5 5.2

15.8

Prepaid Expenses

10.6

10,992.4 $ 12,267.9

Non-Financial Assets Accumulated Surplus

10,602.7

389.7

$ 11,622.6

$ 645.3

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. In 2025, the City’s financial position increased by $255.6 million resulting in a net financial asset position of $1.28 billion. The City’s non-financial assets increased in 2025 by $389.7 million, bringing the total to $10.99 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 $645.3 million in 2025 to $12.27 billion (2024 - $11.62 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 Actual

2025 Actual

Change

$ 1,768.4

Revenues Expenses

$ 1,736.6

$

31.8

(1,123.0)

(1,136.3)

13.3

$ 645.4

Annual Surplus

$ 600.3 $

45.1

The City’s revenues in 2025 totaled $1.77 billion, which is an increase compared to revenues of $1.74 billion in 2024. The year-over-year growth was attributable to increased Taxation revenue, Developer Contributions revenue, Sales of goods and services, Investment income and Other (Gain on disposal of tangible capital assets, Leases and rentals, Licenses and

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