City of Surrey's Annual Financial Report 2020

NOTESTOTHE CONSOLIDATED CITY OF SURREY  FINANCIAL STATEMENTS

For the year ended December 31, 2020 [tabular amounts in thousands of dollars]

15. CONTRACTUAL RIGHTS

Contractual rights are rights to economic resources arising from contracts or agreements that will result in revenues and assets in the future. The following table summarizes the contractual rights that existed at December 31, 2020 of the City for future assets:

2021

2022 6,224 3,649

2023 5,557 3,522

2024 4,821 2,970

Thereafter

Lease revenue (a)

$

6,916 $

$

$

$

33,604

Government agreements (b)

3,575

739

Total

$

10,491 $

9,873 $

9,079 $

7,791 $

34,343

a) Lease revenue The City has entered into a number of fixed term lease agreements for the use of City owned land and/or buildings that are anticipated to provide the City with future revenues. These agreements are for terms that vary from 1 to 19 years. Government agreements The City has entered into various government agreements with senior government and other agencies related to contractual rights expected to be realized as stipulations are met. c) Developer contributions The City has entered into a number of public works development agreements which require the developers to contribute various infrastructure assets to the City, including roads and underground utilities. The timing and extent of these future contributions vary depending on development activity and fair value of the assets received at time of contribution, which cannot be determined with certainty at this time. d) Other contractual rights The City is entitled to receive revenue from certain other agreements. The revenue from these agreements cannot be quantified and has not been included in the amounts noted above. b)

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