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MAY 8, 2017
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, 2016. The purpose of this
report is to publish the consolidated Financial Statements
and the Auditors’ 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, 2016 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.
FINANCIAL OVERVIEW
2016 in Review
The construction of new facilities under the ‘Build Surrey’
Program continued to facilitate development activity
throughout the City during 2016. Of particular significance
was the opening of the Grandview Heights Indoor Pool,
serving the growing community of South Surrey. Design
work also began on the new Clayton Hub, which will
incorporate integrated arts, library, recreation and outdoor
space in a single facility to serve the communities of
East and West Clayton. In the residential development
community, the shift toward the construction of multi-
family dwellings has continued into 2016, 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 strong commercial and institutional sector activity;
which has been particularly evident in the City Centre. In
addition, industrial development in the Campbell Heights
area remains steady.
The City’s revenues in 2016 totaled $914.7 million, which
is an increase in comparison to revenues of $853.4 million
collected in 2015. This increase was attributable primarily
to additional property taxes, utility fees, license, permits
and one-time land sale proceeds. The additional revenue
generated from the increased property related fees and
taxes was required to support a $12.5 million budgeted
increase in Public Safety along with a $8.8 million
budgeted increase in support for new Civic Facilities
opening in 2016 and necessary labour and inflationary cost
increases.
The City’s expenses totaled $698.8 million in 2016,
which was an increase in comparison to expenses
of $670.5 million in 2015. This increase was primarily
attributable to increase in the RCMP contract, increases
in Parks, Recreation and Culture programming and a
reclassification of utility overhead cost recoveries.
REPORT
FROMTHE
GENERAL MANAGER, FINANCE &TECHNOLOGY