City of Surrey's 2025 Annual Financial Report

that are part of a development and subsequently turned over to the City as a public asset. The largest share of Contributed Assets each year typically consists of transportation infrastructure and road allowances. The budget for the 2025 DCC program is based on the anticipated usage of the reserve to deliver growth related capital projects. The actual result in 2025 is the revenue recognized from the various DCC reserves to fund the expansion and upgrading of the City’s water, sewer, drainage, and transportation infrastructure and also acquire parkland. The resulting negative variance of $28.6 million reflects the timing difference between forecasted timelines for construction and acquisitions and the related disbursements from the reserves. $18.3 million of favourable variance in Sales of Goods and Services is primarily due to unbudgeted revenues from the sale of carbon credits, and settlement of a liability associated with property and parking contributions to TransLink under the Surrey Langley SkyTrain compensation agreement; both these items are a “one-time” occurrence. Bylaw Services continued their enforcement activities for unregistered secondary suites, yielding positive results as evidenced by a favorable variance of $5.0 million in secondary suite fees and fines for unregistered suites. These positive variances were further supplemented by higher than budgeted revenues related to Surrey Biofuel Facility natural gas sales, Surrey Fire Service dispatch services and facility rental revenues, security clearance fees, and false alarm fees totalling $4.6 million. Actual vs. Budgeted Expenses Consolidated expenses of $1.12 billion were less than budgeted expenses by $79.7 million. Police services expenditures had a $48.6 million favourable variance, $40.6 million of which was largely attributable to underspent salaries and benefits, technology systems levies, software application licenses, leasehold improvements/renovations and police fleet expenditure. The remaining variance is predominately due to reclassification of capital expenditures, which were included within the operating budget. $5.5 million of favourable variance in Roads & traffic safety expenditures was due to less than expected winter maintenance costs, consulting and professional services costs for transportation management, savings from staffing vacancies, and lower internal cost allocations. $3.6 million of favourable variance in Fire services expenditures was primarily the result of salary cost savings due to the timing for filling additional Council approved fire personnel positions in 2025. Those savings were partially offset by cost increases in general supplies, safety equipment, fleet repairs and maintenance, and cleaning supplies for Fire Halls. The City is continuing to undertake significant capital investments to enhance the thriving landscape of Surrey by providing citizens with access to safe, inviting, high-quality facilities, programs and services. The 2026–2030 General Capital Program represents the most significant financial commitment in the City’s history, with over $779 million allocated over the next five years. The most substantial of these investments will THE FUTURE

be a 10,000-seat sports and entertainment arena in the City Centre which will serve as an anchor for Surrey's new world-class entertainment district. Hotel, retail and conference space will complement the arena and support the City’s vision to transform City Centre into a vibrant downtown and regional destination for jobs, education, and entertainment. SCDC’s partnership with SFU on the 2+ million sq. ft. Centre Block development project will house the first medical school to be announced in western Canada since 1967. The first phase of Centre Block will deliver a 12-storey office and academic development in the City Centre with the City’s portion of the project containing ground level commercial retail units and three and a half storeys of office space. The City’s component will provide future office space for City services in addition to revenue generating commercial retail and office lease opportunities. Council’s $310.6 million investment in the new 175,000 sq. ft Newton Community Centre and the planned King George Boulevard Bus Rapid Transit (“BRT”) project is catalyzing development of the Newton Town Centre. The arrival of a state-of-the-art Community Centre with a new pool, daycare, library, gym and sports courts, along with planned enhanced transit connectivity, spurred SCDC and TransLink to partner on the Newton Centre Master Development Plan. The master plan envisions a high density, mixed-used residential development of 40 acres of publicly-owned lands in the vicinity of the intersection of 72 Avenue and King George Boulevard. This would become the new vibrant core of the Newton area, with the long-term, multi-phased projects generating at least 2,200 homes for 4,000 people and 154,000 sq. ft. of retail/restaurant use. The proposed development seeks to generate a critical mass of new residents, services and retail amenities that will ensure a hub of vibrant activity. Following Council’s continued advocacy for BRT, TransLink has identified Surrey as the host City for the BRT pilot station, located in the heart of City Center near Holland Park and the King George SkyTrain Station. The pilot will further advance Surrey’s vision of bringing the high-priority, much-needed transit service to our growing City. The BRT route will span 20 kms with 12 stations, connecting City Centre and Semiahmoo Town Centre. With dedicated bus lanes, transit signal priority at intersections, and weather-protected stations, BRT will reduce travel time by 40% to approximately 40 minutes between the two terminuses. Council is bringing soccer fans together in Surrey by offering free, welcoming spaces where families, neighbours, and visitors can come together to celebrate the world’s biggest sporting event, FIFA World Cup 26 ™ . Surrey Soccer Fan Zones will bring the excitement of the tournament to the city through live broadcasts at Surrey Civic Plaza, Cloverdale Agriplex and South Surrey Athletic Park, allowing fans to experience the matches in a lively, community-focused atmosphere. The City will host more than 100 match broadcasts over six weeks, exemplifying why Surrey is a fun place to live, play and explore. The City took a major step toward giving residents greater access to family doctors and primary care by finalizing lease agreements for its first two community medical clinics in City Centre and Newton, scheduled to open

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