The Mayor of Surrey says he's "dismayed and shaken" by the city's debt burden

Surrey Mayor Doug McCallum says he is "deeply dismayed" by the city's debt spiral and promises to control it.

But not everyone agrees on the amount of debt and what to do.

The controversy began when the mayor issued a statement just after midnight Tuesday, in which he was "deeply shaken" when he learned that there was red ink on the books of the city.

"The council has learned that the city currently has a debt of $ 514 million," said the statement from the mayor's office.

In fact, CBC News confirmed that the debt load recorded in the city's December 2017 financial report was $ 267 million, or about $ 500 per resident.

Tuesday late afternoon, the mayor's office issued a supplementary statement stating that "the $ 514 million amount actually corresponds to the city's projected debt under the five-year financial plan approved in December 2017 if she was allowed to go to the end. "

Proposed usage payment system

As part of his plan to reduce debt, McCallum said he wanted Surrey to "function like a regular home" by saving and paying bills on time.

The Mayor said he was confident that the planned pay-as-you-go system will not affect programs and services offered throughout the city. But he said in a statement that the board needed to determine how to "proceed responsibly with capital projects".

Doug McCallum is sworn in at Surrey City Hall during a ceremony at City Hall on November 5, 2018. (Colin Fode / CBC)

"When I was mayor of the city for nine years, I was very proud to manage the city's finances by saving first and avoiding debts." The Council and I agreed to immediately put the city's finances in order, "said McCallum.

Overrated debt?

But a former McCallum opponent said the new mayor is exaggerating Surrey's financial problems. Bruce Hayne is a former Surrey councilman who ran against McCallum in the October municipal elections.

"I think some concerns are going on because I do not believe, first of all, that the debt exceeds $ 500 million." I looked at the financial statements and, as I've said, is around 250 million dollars. "

Tom Gill has also been a mayoral candidate against McCallum after years on the board and said McCallum's press release on the "debt spiral" is overestimated given the mbadive growth recorded in Surrey. He added that the debt review does not take into account surpluses and badets of the city.

"The accumulated surplus for the city far exceeds a billion dollars," he said, noting that Surrey had recently been honored by the Cd. Howe Institute for its financial transparency.

Gill explains that investments have been made in the downtown area over the past decade with the creation of a new downtown, a new town hall, two aquatic centers, five ice rinks and other infrastructure projects.

The City of Surrey built a new City Hall four years ago. (CBC)

He also criticized the balance of accounts when McCallum was mayor, noting that in the past, the city of Surrey had sold $ 100 million worth of land not to raise property taxes.

Debt spiral or scapegoat?

"I am extremely concerned about what has happened in the past and it is something that I have personally prevented from directing finances," he told CBC.

Gill believes that the land sold would be worth much more now.

Surrey Mayor Doug McCallum (left) and Vancouver Mayor Kennedy Stewart (right) met with Prime Minister Justin Trudeau after their election and said their priority was to work together. (Justin McElroy / CBC)

"[Surrey] is very well located and our finances are very strong … It is unfortunate that a government that is not able to keep its promises looks for a scapegoat and looks to the past. "

Since his election, McCallum has promised to replace a project approved by Light Rail Transit (LRT) by SkyTrain. He also promised to replace the Surrey RCMP detachment with a city-run police service.

Both are expensive projects with uncertain price tags.

A budget report prepared by staff will be presented to the Surrey Finance Committee on December 11th. McCallum stated that the Board and the Board will not make any other comments until they have reviewed this document.