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Message from the General Manager, Finance andTechnology
2016-2020 FINANCIAL PLAN
8.0 SURREY CITY ENERGY UTILITY FINANCIAL PLAN - ISSUES AND PRIORITIES
The Surrey City Energy (SCE) Utility has been structured to be a self-sustaining fund that
will supply heating, cooling and hot water to high-density new construction in the City.
In July 2014, Council approved the establishment of a third-party Expert External Rate
Review Panel to assist staff and Council in the oversight of SCE’s rates and rate
structure. The Panel conducted a full review of the long-term financial plan, rate
structure, and 2016 rates and has provided a letter of endorsement in support of the
2016 rates. The average residential customer will pay $768.60 in 2016, based on an
average unit size of 70m
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and annual consumption of 7.35 MWh/year. The first
customers began receiving service in early 2016.
9.0 WATER UTILITY FINANCIAL PLAN - ISSUES AND PRIORITIES
The Water Utility is a self-sustaining fund; any projected funding requirements are met
by a corresponding increase in user fees. Over the last several years, the City has been
moving towards a fully ‘metered’ approach for recovering the costs of the water utility,
with the eventual aim of retiring the ‘flat rate’ system and having all properties on water
meters.
The Water Utility’s funding requirements are affected by the following factors:
Greater Vancouver Regional District’s (GVRD) projected water rate increases; and
Contractual labour and energy cost increases.
To meet these funding requirements, water rates will increase in 2016 and beyond. The
average metered single family dwelling will pay $401 in 2016 ($385 in 2015) based on an
average yearly consumption of 360 cubic metres.
10.0 GENERAL CAPITAL FINANCIAL PLAN - ISSUES AND PRIORITIES
Since 2010, the City has undertaken a number of large-scale capital projects across the
City to accommodate and support anticipated business and residential growth. The City
has invested over $466 million to date. The 2016 - 2020 Financial Plan includes a further
$273 million investment over the next five years. The funding for these projects will be
primarily through internal borrowing. These projects include a new recreation and
cultural facility in Clayton, additional ice surfaces in Cloverdale, the replacement of the
arena in North Surrey, expansion of our district energy system, an Urban Park in
Newton, additional space for our RCMP members and the addition of the second phase
of the Surrey Museum.
The City has ongoing capital requirements of over $16.0 million per year. The City must
also fund minor capital projects including improved lighting at various recreation
centers, equipment and security upgrades as well as recreation facility entrance
improvements. Additional details of planned capital projects can be found in the Capital
Program section of this document.
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