City of Surrey 2016 Annual Report

NOTESTOTHE CONSOLIDATED CITY OF SURREY  FINANCIAL STATEMENTS

For the year ended December 31, 2016 [tabular amounts in thousands of dollars]

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:

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:

DRF Demand Note

Issue

LA

SI

Rgn SI

Purpose

Term

116 116 116 121 126 126

17173 17180 17231 17231 17928 17929

R10-2022 R10-2357 R11-124 R11-124 R13-1059 R13-1061

1139 1141 1142 1142 1188 1188

Other Other Other Other Other Other

25 25 25 25 30 30

$ 319

637

1,035

743 943 280

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.

.

61