Transcript No Slide Title

Helping BC Communities Grow
Municipal Finance Authority
of British Columbia
A Credit Union for Local
Government
The MFA was formed in 1970 to promote
the financial well-being of
local governments
throughout British Columbia
Municipal Finance Authority of BC
MFA
Governance
Chair
Annually elected from The
Members of the Authority
9 Trustees
Annually elected from the
Members of the Authority
35 Members
Annually appointed from the
Regional Districts
27 Regional Districts
Representing 154 Municipalities
Municipal Finance Authority of BC
MFA Programs






Capital Financing
Pooled Investments
~ Bond Fund
~ Intermediate Fund
~ Money Market Fund
Interim Financing
Leasing
Consulting
Municipal Investment Plan
Municipal Finance Authority of BC
MFABC
2004
1.
Trustees
10
2.
Staff Size
9
3.
Total Debt managed
- Annual debt
issuance
- # of issues
outstanding
$3,581 million
$400-500 million
approx. 200
Municipal Finance Authority of BC
MFABC
2004
4. Total Investments Managed
$1,300 million
5. Operating Fund:
Revenues
- Tax Based Expenditures
Expenditures
$2,406,000
3.6%
$1,699,000
Municipal Finance Authority of BC
MFABC
2004
6 Clients
.
All Programs:
Municipalities, Reg.
Districts, Utilities,
E-COMM, Reg.
Hospitals, TransLink
Optional Programs:
Universities, Colleges,
School Districts, First
Nations and other
Associations
MFA Capital Financing
Program


The basic purpose of the capital financing program is
to lend cash for capital projects at an interest rate set
by the MFA
The MFA structure is collective yet flexible:
For example if your project is for a 15 year term but the
current MFA bond issue is only for 10 years, you can request
a financial product that will secure a rate for the full 15 year
term
Hambros Sales of BCMFA
CAD 98 Million 7½% 2003
Switzerland
19.5%
Benelux
19.2%
Far East
23.5%
Germany
8.5%
Total Sales: 118,878,000
Other
1.8%
UK
17.2%
Middle
East
4.3%
Offshore
6.0%
MFA of B.C.
Market Timing – Issue #74
Government of Canada 10 year Yield
6.0
5.9
5.8
5.7
5.6
% 5.5
5.4
5.3
5.2
Yield
High on 5/24/01
Average
Low on 03/22/01
5.372
5.99
5.5905
5.193
April 4, 2001
MFA BC issue
Canadas at 5.448%
Jan
1. Issue #74
Feb
Mar
Apr
May
Jun
Jul
Aug
Market Timing
MFA vs 10 Year Canadas
12
Total Amount Financed
11
by MFA Over the Period
10
$2,682,201,000
9
8
Total Number of Issues
7
May 15, 1990 - August 1, 2001
6
5
26
4
90 91 92 93 94 95 96 97 98 99 00 01 02
Canada Yields
Over the Period (%)
High
11.440
Low
4.686
Average
7.270
Canada Yields at
time of Financing (%)
10.940
5.003
6.737 *
* weighted by principal amount financed
MFA Net
Over + Under - (%)
-.500
+.317
-.533
Sinking Fund and CREF Cash
Surpluses Plus Stop Payments
($ millions)
60
55
50
45
40
35
30
25
20
15
10
5
0
2001
2002
2003
2004
Surplus
2005
2006
Stop Payment
2007
2008
Five Stages of a Project





Stage 1
Excitement and euphoria
Stage 2
Disenchantment
Stage 3
Search for the guilty
Stage 4
Punishment of the innocent
Stage 5
Distinction for the uninvolved
Pooled Investment Procedures
Subscription
via telephone
Municipality
Fax Subscription/
Redemption/Transfer
CIBC – Mellon
Global Securities
CIBC
Banking
MFABC
Monthly
Reports
Phillips Hager
& North
How is the MFA funded?
15%
Programs
95%
85%
Tax Levy
5%
Municipal Finance Authority of BC
Pooled Investment
Program
Municipal Finance Authority of BC
MFA Pooled Investment
Program
Three programs for Local Government’s investment
needs:



Bond Fund – for investments of more than three years
Intermediate Fund – for investments from one to
three years
Money Market Fund – for investments of less than one
year
For MFABC Members to invest surplus cash at
competitive rates with great liquidity and limited
risk
Municipal Finance Authority of BC
MFA Pooled Investment Funds –
Usage
($ x 1,000)
$1,484,387.84
1,500,000
1,300,000
1,100,000
900,000
700,000
500,000
300,000
Jan Feb Mar
1998
Apr May Jun
1999
2000
Jul
Aug Sep Oct
2001
2002
Nov Dec
2003
Leasing Pool Usage Overall
January, 1996 to December, 2003
$ millions
55
50
45
40
35
30
25
20
15
10
5
0
J M M J S N
F A J A O D J M M J S N
F A J A O D J M M J S N
F A J A O D
Monthly Usage
1998
1999
2000
2001
2002
2003
Interim Financing Program
January, 1998 to December, 2003
$ millions
275
250
225
200
175
150
125
100
75
50
25
0
J M M J S N
F A J A O D J M M J S N
F A J A O D J M M J S N
F A J A O D
Monthly Usage
1998
1999
2000
2001
2002
2003
2004 MFA Staff
Steve
Graham
Lorna
Allison
Shelley
Jane
Marguerite
Renata
Meagan