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May 9, 2016
To Mayor Linda Hepner and Members of City Council
It is my pleasure to submit the Annual Financial Report for
the year ended December 31, 2015. The purpose of this
report is to publish the consolidated Financial Statements
and the Auditor’s Report for the City of Surrey pursuant to
Section 167 of the Community Charter.
The preparation of the consolidated financial statements
is the responsibility of City Council and the management
of the City of Surrey. The financial statements and
related information have been prepared in accordance
with Canadian Public Sector Accounting Standards as
prescribed by the Public Sector Accounting Board (PSAB)
of the Chartered Professional Accountants of Canada
(CPA). In addition to the City of Surrey, the reporting entity
comprises all organizations, boards and enterprises
financially accountable to the City of Surrey, including
the Surrey Public Library, the Surrey Homelessness
and Housing Society and the Surrey City Development
Corporation.
The public accounting firm KPMG LLP, which was
appointed by City Council as the external auditor, has
given the City an unqualified audit opinion on the City’s
Consolidated Financial Statements, stating that in
their professional opinion, the Consolidated Financial
Statements present fairly, in all material respects, the
consolidated financial position of the City of Surrey as
at December 31, 2015 including its consolidated results
of operations, its changes in net consolidated financial
assets and its consolidated cash flows for the year
then ended in accordance with Canadian Public Sector
Accounting Standards. KPMG LLP has also stated
that the City maintains a system of internal accounting
controls designed to provide reasonable assurance
for safeguarding the City’s assets and the reliability of
financial records and documents.
FINANCIAL OVERVIEW
2015 in Review
The construction of new facilities under the ‘Build Surrey’
Program continued to facilitate development activity
throughout the City during 2015. Of particular significance
was the opening of the Guildford Indoor Pool and the near
completion of the Grandview Heights Indoor Pool, both of
which will serve growing communities. In the residential
development community, the shift toward the construction
of multi-family dwellings has continued into 2015, although
the City still continues to offer excellent value in the single
family residential sector relative to the rest of the Greater
Vancouver area. Another healthy sign of development was
the significant activity in the commercial sector; this was
particularly evident in the City Centre and in the Grandview
Heights area. In addition, industrial development continues
to show growth in the Campbell Heights area.
The City’s revenues in 2015 totaled $854.6 million, which
is an increase in comparison to revenues of $846.9 million
collected in 2014. This increase was attributable primarily
to additional property taxes, utility fees and secondary
suite fees, although lower government transfers and
developer contributions were recorded. The additional
revenue generated from the increased property related
fees and taxes was required to support a $14.2 million
budgeted increase in Public Safety along with a $6.6
million budgeted increase in support for new Civic
Facilities opening in 2015 and necessary labour and
inflationary cost increases.
The City’s expenses totaled $671.7 million in 2015, which
was an increase in comparison to expenses of $656.2
million in 2014. This increase was primarily attributable
to increase in the RCMP contract, reflecting the cost of
new members, and increases in Parks, Recreation and
Culture programming. These increases have been offset
by savings in Engineering Services. While annual costs
have increased, all services were able to be delivered
within budget.
REPORT
f rom the
General Manager,
Finance & Technology