City of Surrey 2017 - 2021 Financial Plan

Message from the General Manager, Finance andTechnology

2017-2021 FINANCIAL PLAN

As a means of achieving our waste diversion and illegal dumping targets by the year

2018 and 2020 respectively, the City is developing a comprehensive work plan to be

initiated in 2017 that includes: new services to high-rise customers; expanding existing

services to curbside (single family) customers; increasing education of the City’s existing

waste collection programs; and enhancing enforcement efforts by deploying new

surveillance technologies. In order to support these initiatives, the City will implement a

$4.00 rate increase, bringing the solid waste rate to $287 per single family residence in

2017 ($283 in 2016).

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 2017 rates and has provided a letter of endorsement in support of the

2017 rates. The average residential customer will pay $827.27 in 2017, based on an

average unit size of 70m

and annual consumption of 7.35 MWh/year. The SCE is

currently serving 4 multi-unit high-rise and commercial buildings, with another 6

buildings expected to connect to the system in 2017 and 2018.

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 2017 and beyond. The

average metered single family dwelling will pay $414 in 2017 ($401 in 2016) based on an

average yearly consumption of 360 cubic metres.