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Notes to the Consolidated Financial Statements
For the year ended December 31, 2014
[tabular amounts in thousands of dollars]
31
City of Surrey
14. 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:
•
MFA Debenture Issue No. 116 April 4, 2011;
•
MFA Debenture Issue No. 121 October 4, 2012; and
•
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.