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Investments
The City’s investment policy, which complies with Community
Charter requirements, outlines how City funds are to be
invested to achieve reasonable returns and with investment
security while meeting the City’s cash flow requirements. The
average portfolio balance related to the City’s investments
during 2015 was $643.7 million ($620.6 million in 2014), which
earned $16.4 million in interest in 2015; of which $1.6 million
was allocated to deferred development cost charges. The
average rate of return during 2015 on the City’s investment
portfolio was 2.38%.
Reserve Funds
The City’s statutory reserve funds amount to $111.0 million at
the end of 2015 compared to a balance of $95.7 million at the
end of 2014. This increase is mainly due to the sale of lands
in Campbell Heights. The deferred development cost charge
balance at the end of 2015 was $239.6 million, which is an
increase over the balance of $229.6 million at the end of 2014.
This is a reflection of the City’s steady development activity.
These funds will be used to fund capital projects that are
listed in the City’s Five-Year (2016-2020) Financial Plan.
Financial Position
The 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 2015, the City’s financial position improved by $43.0
million resulting in a Net Financial Asset position of $33.1
million mainly due to the City’s annual consolidated surplus
(revenues exceeding expenses) of $183 million offset by net
capital acquisitions.
The City’s non-financial assets increased in 2015 by $140.3
million, bringing the total to $8.1 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 the increase in financial position and non-
financial assets was accumulated surplus increasing in 2015
to $8.2 billion (2014 - $8.0 billion). Overall, the City continues to
maintain a strong financial position.
Vivienne Wilke, CPA, CGA
General Manager, Finance & Technology
THE FUTURE
The City’s future financial, social and environmental health holds promise
and opportunity. The significant growth and transformation we have
experienced in the last several years continues as over 1,000 new
residents per month make Surrey their home. With this level of growth
expected to sustain for the next two decades, the City needs to continue to
expand its infrastructure and service levels to ensure that both current and
future residents and business needs are adequately met. 2015 marked the
official opening of the New Guildford Indoor Pool, the near completion of
the Grandview Heights Indoor Pool and the City’s New Worksyard facility.
The City also began construction on the public/private partnership of one
of the largest Organics Biofuel Facilities in Canada and an expansion on
the City’s District Energy System, allowing for the introduction of cost
and environmentally effective energy to more residential and commercial
customers. Planning has also started on some significant community
projects to support our growing population, these include the relocation of
the North Surrey Arenas, the addition of a Multi-use facility in Clayton and
expansion of the Surrey Museum and additional ice surfaces in Cloverdale.
In light of the fiscal and operational pressures that come with such
significant expansion and growth, City staff will endeavor to ensure that
property owners continue to have competitive property tax rates relative
to other cities of a similar size both in the local region and across Canada.
The continued effective use of City resources will play a critical role in
ensuring fiscal prudency, and effective and efficient utilization of
resources will certainly be driven by the use of technology and the
implementation of innovative solutions. The City continues to introduce
technology that improves customer service as well as enhancing and
expanding our online service delivery.
Staff is staying abreast with financial statement changes that are being
considered by the Public Sector Accounting Board (PSAB) with a view
to ensuring that the City implements changes in a timely and efficient
manner. Staff are currently studying the potential impact and developing
policies to implement the upcoming guidelines related to Inter-Equity
Transactions; Related Party Disclosures; Asset Disclosure Contingent
Assets, and Contractual Rights. These new standards will be required to
be adopted by January 1, 2018. Other areas of potential change include
possible changes to revenue recognition and asset retirement obligation.
Staff will monitor potential impacts of these areas as they evolve.
Under the direction and guidance of City Council, the City of Surrey is
well positioned to continue to deliver a high quality of services for its
current and future residents and businesses in support of a continued
high quality of life. The City’s tag line, “The Future Lives Here”, aptly
characterizes the growing, exciting, youthful city that Surrey has become.
Respectfully submitted,