FAQs

The budget is the City’s plan for where it will get money (revenues) and how it will spend it (expenditures) in alignment with our long-term vision. In Surrey, the budget is referred to as the Five-Year Financial Plan.

Every year, the City prepares a Five-Year Financial Plan in accordance with provincial legislation.  The financial plan outlines the financing of initiatives associated with the City's strategic plans (e.g., Sustainability Charter, Parks, Rec. & Culture Strategic Plan, etc.) as well as Council's key priorities.

Council works to ensure that the financial plan is responsive to the needs of residents, provides adequate funding to maintain City services, and addresses the demands of growth throughout Surrey.

There are three main components of the City's financial plan: General Operating, Utilities Operating, and Capital Program. All three components are interrelated.

• The Capital Program funds all the things the City builds—from new structures to maintaining what we’ve already got—including roads, utilities infrastructure, recreation centres, city vehicles, fire halls, pools, arenas and libraries.
• General Operating funds the delivery of everyday programs and services like police, bylaw and fire services, attractions, recreation activities, parks maintenance, and social programs.
• Utilities Operating funds the operating costs of utilities, including roads, water, sewer, drainage, solid waste, parking, and Surrey City Energy.

Cities are required to adopt a financial plan each year. The planning period for the financial plan is five years, made up of the upcoming year as well as the following four years.

Each year, City staff develop an annual budget based on direction from Council and with input from the public. The budget details where, when, and how funds should be spent to deliver quality services to meet the needs of the community, to support businesses, and to deliver on strategic priorities. 

Through this process, City departments examine priorities, assess objectives, and make resource allocation decisions to support goals. Council provides input to guide the process and ensure that the budget addresses Council’s key strategic priorities and initiatives.  

City budgets must be balanced, meaning that total expenditures do not exceed total proposed funding sources. In order to balance the budget while maintaining current service levels and address new funding priorities, the City needs to consider a combination of funding mechanisms (see question below: How does the City pay for its programs and services). 

It’s important to the City that residents have the opportunity to provide feedback on their priorities as the budget is developed. In addition to the annual financial plan public consultation process, the City asked for feedback through an online survey and series of in-person events. Feedback from the online survey and in-person events will help Council adopt a financial plan that reflects the community’s needs and priorities. 

Timeline: 

• September/October 2024 | Public engagement on budget priorities   
• October 2024 | Budget engagement results brought to Council 
• December 2024 / January 2025  (target timeframe) | Draft Budget presented at public hearing   
• December 2024 / January 2025  (target timeframe) | Council adoption of budget 

In preparing for the 2025 budget, Council must carefully consider emerging issues and community priorities, as well as the need to fund City services, amenities, and infrastructure. External factors must also be considered, such as economic inflation, materials and construction costs, climate change and extreme weather events. Protective services resourcing (e.g., fire services, police services, bylaw enforcement) is another vital component of the budget. 

In addition to Council’s key priorities, the following plans also guide decision-making around the budget: 

• The Sustainability Charter
• The Official Community Plan
• The Transportation Strategic Plan
• The Parks, Recreation and Culture Strategic Plan
• The Surrey Public Library Strategic Plan

A link to the above plans can be found on the project page.

The BC government and the City of Surrey have reached an agreement that will complete the transition to the Surrey Police Service (SPS) by providing oversight, accountability and cost mitigation for residents and businesses in Surrey. Surrey City Council has worked hard to ensure that the provincial government would support the police transition beyond its initial $150 million offer, securing funding of up to $250 million for the police transition. Through the agreement, the Province will provide $30 million per year ($150 million in total) to assist with transition costs until 2029. The agreement also provides a financial guarantee of as much as $20 million per year (up to $100 million in total) if SPS salary costs are higher than what the City would have paid for RCMP salary costs from 2029 to 2034. Surrey fully supports the transition and agrees that a separate police tax is not necessary. The SPS will become the police of jurisdiction on November 29, 2024.

Surrey’s budget process is underway. Decisions have not yet been made around tax increases that may be needed to balance the budget. Any tax increases within the draft budget will be impacted by resource allocation decisions, desired service levels, emerging priorities, external factors such as inflation, and findings from community engagement.

We are currently engaging the community to gather feedback on priorities and funding options prior to drafting a budget. After community engagement, a draft budget will be prepared for review by the Finance Committee. At that time, any considerations around changes to property taxes will be shared with the public for input. A public hearing on the draft budget is expected to take place in December 2024 / January 2025 (target timeframe).

There are a number of revenue sources that cities use to fund services, amenities, and infrastructure: 

Property tax: Property tax is the main source of revenue for most cities. Property tax includes property value taxes, parcel taxes, and local area service taxes.  

• Property value tax is levied on the value of land and improvements. Property owners pay based on the property’s assessed value as well as the amount determined by the City to provide services, such as maintaining the City’s road network. 
• Parcel taxes are levied on the unit, frontage or area of a property. Parcel taxes are distinct and separate from the property value taxes, which are levied on the assessed value of a property. Parcel taxes in Surrey support services such as recreation and culture, and infrastructure such as drainage systems. 
• Local area service taxes provide funding for services to only a portion of the municipality (i.e., a local service area).

User fees: A charge that an individual pays to use City services to partially recover the costs of those services. Examples include recreation and culture facility admissions, parking fees, development fees, and dog licences. User fees are also a funding mechanism for the water, sewer, and energy utilities that are billed separately, along with the solid waste (garbage and recycling) utility that appears on your tax bill.

Borrowing:  The City has access to long-term external borrowing through the Municipal Finance Authority of British Columbia (MFA) to provide additional funding options for major capital projects. The City carefully monitors its borrowing capacity and debt levels when considering this option. The City strives to borrow only when necessary.

As one of British Columbia’s fastest growing cities, Surrey is regularly undergoing major transformation to meet the needs of its growing population. The City funds a range of services, amenities, and infrastructure. Property tax dollars, along with multiple other revenue sources, help fund the priorities set out in the five-year financial plan, including recreation programming, fire and police services, and future infrastructure.

All local governments are required to collect taxes on behalf of other authorities annually. In 2024, these amounts accounted for over 42% of the City’s total budgeted tax collections, including Province of BC (33.35%), TransLink (6.65%), Metro Vancouver Regional District (1.43%), and BC Assessment (0.99%). After collecting and remitting these required taxes to other authorities, the remaining amount is what the City works with to fund City priorities each year as part of the budget process.

*Province of BC, TransLink, Metro Vancouver Regional District, BC Assessment, and Municipal Finance Authority of BC

The City recently asked the community to share their ideas on which City services are most important to them and where they would like to see their tax dollars go. 

Feedback collected from survey and in-person events will be analyzed and presented to help inform Council as they review and adopt the 2025 budget. 

The budget process and how the City ultimately balances the budget affects all community members who enjoy Surrey's vast number of services, amenities and infrastructure—whether you rent or own your home. If you call Surrey home or if you own a business in Surrey, we welcome your feedback.