City of Surrey 2019 Annual Financial Report

NOTESTOTHE CONSOLIDATED CITY OF SURREY  FINANCIAL STATEMENTS

For the year ended December 31, 2019 [tabular amounts in thousands of dollars]

8. DEBT

2019

2018

$ 173,712

MFA debt (i)

$ 179,699

48,065

Loans payable (ii)

49,325

$ 221,777

$ 229,024

i) MFA Debt Pursuant to security issuing by-laws under authority of the Community Charter, the City obtains debt instruments through the Municipal Finance Authority of British Columbia (MFA) to finance certain capital expenditures.

Gross amount of the debt less sinking fund installments and actuarial adjustments to date are as follows:

Sinking fund installments and actuarial adjustments

Net debt 2019

Net debt 2018

MFA Issue 

Gross debt

$ 77,875

116 121 126

$ 100,000

$ 22,125

$ 81,034

36,465 59,372

45,000 67,335

8,535 7,963

37,833 60,832

$ 173,712

$ 212,335

$ 38,623

$ 179,699

Current borrowing includes:

MFA Issue

Issue Date

Term (yrs.)

Maturity

Interest Rate

* Refinancing Date

116

April 4, 2011

25

April 4, 2036

4.20%

April 4, 2021

121

October 4, 2012

25

October 4, 2037

2.90%

October 4, 2022

126

September 26, 2013

30

September 26, 2043

3.85%

September 26, 2023

*On the Refinancing Date, the City has the option to retire the debt early or refinance the borrowing at a new interest rate.

ii) Loans payable

2019

2018

$

12,112

SCDC: Cedar Hills loan payable, Citizen’s Bank of Canada, 10-year term maturing November 1, 2022, payable in monthly payments of $78,497, including interest calculated at a rate of 3.95% per annum, secured by a mortgage on the commercial property. Biofuel Processing Facility: 25-year contract with Orgaworld Canada Ltd., payable in monthly payments of $221,516 including interest calculated at a rate of 5.10% payable.

$

12,570

35,953

36,755

Total Loans Payable

$

48,065

$

49,325

59