82 / 140
72
For the year ended December 31, 2015
[tabular amounts in thousands of dollars]
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
City of Surrey
15. COMMITMENTS AND CONTINGENCIES (CONTINUED)
g) Debt Reserve Fund Demand Note
The City has a contingent liability with respect to the Municipal Finance Authority of BC’s (MFA) Debt Reserve Fund Demand
Notes. This contingent liability is a condition of the borrowings undertaken by the City through:
i) MFA Debenture Issue No. 116 April 4, 2011;
ii) MFA Debenture Issue No. 121 October 4, 2012; and
iii) MFA Debenture Issue No. 126 September 26, 2013.
As a condition for each debenture issue, the City is required to execute demand notes in connection with each debenture
whereby the City may be required to loan certain amounts to the MFA. The debt agreement with the MFA provides that if at any
time the scheduled payments provided for in the agreement are not sufficient to meet the MFA’s obligations in respect to such
borrowing, the resulting deficiency becomes the joint and severed liability of the City and all other participants to the agreement
through the MFA. The City is similarly liable on a contingent basis for the debt of other municipalities secured through the MFA.
Demand note amounts are as follows:
Issue
LA
SI
Rgn SI
Purpose
Term
DRF
Demand Note
116
17173
R10-2022
1139
Other
25
$
319
116
17180
R10-2357
1141
Other
25
637
116
17231
R11-124
1142
Other
25
1,035
121
17231
R11-124
1142
Other
25
743
126
17928
R13-1059
1188
Other
30
943
126
17929
R13-1061
1188
Other
30
280
Total
$ 3,957
h) Policing services
The City entered into a contract with the Provincial Government that provides for the Royal Canadian Mounted Police (“RCMP”)
to deliver policing services for the City through to March 31, 2032.
i) Surrey Organics Biofuel Processing facility
The City has entered into a 25 year agreement with Orgaworld Surrey Limited Partnership to design, build, finance, operate, and
maintain the Surrey Organics Biofuel Processing facility. The City contributed the land and 25% of the construction costs up to
$16 million (received through a P3 Canada Infrastructure Grant). Under the agreement, the City has guaranteed to provide the
operator with a minimum of 54,449 tonnage of City Organic Waste for processing in year 1, increasing annually over the life of the
agreement to a minimum of 69,975 tonnage in year 25. In return the City will accept 100% of the Biomethane that is produced at
the facility and will share surplus Industrial, Commercial and Institutional (ICI) revenue and Digestate Product revenue.