Mayor Doug McCallum says he is "deeply dismayed" by the state of the finances in Surrey, B.C., and has instructed staff to launch a "pay as you go" system to cut the city's debt.
Surrey, B.C. (EB Adventure Photography / Shutterstock.com)
McCallum, who originally served as Surrey's mayor between 1999 and 2005, was elected in October and said Tuesday he was "shaken to the core" when he learned about the red ink on city books.
He said the debt totals $514 million.
McCallum is confident the planned pay-as-you-go system will not affect programs and services across the city.
But he said in a statement that council must determine how to "responsibly proceed with capital projects."
McCallum wants to see Surrey "operate like a regular household" by saving and paying bills as they are due.
"When I was previously mayor for nine years, I took great pride in running the city's finances by saving first and avoiding debt. Council and I have agreed to immediately bring the city's fiscal house in order," McCallum said.
A budget report prepared by staff will be presented to Surrey's finance committee on Dec. 11. McCallum said he and council won't comment further until they have reviewed that document.
