Municipal Finance Authority of British Columbia - PowerPoint PPT Presentation

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Municipal Finance Authority of British Columbia

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  1. Helping BC Communities Grow Municipal Finance Authority of British Columbia

  2. A Credit Union for Local Government The MFA was formed in 1970 to promote the financial well-being of local governments throughout British Columbia

  3. 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 mfa-bc Municipal Finance Authority of BC

  4. MFA Programs • Capital Financing • Pooled Investments • Bond Fund • Intermediate Fund • Money Market Fund • Interim Financing • Leasing • Consulting • Municipal Investment Plan

  5. MFABC

  6. MFABC

  7. MFABC

  8. 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

  9. Hambros Sales of BCMFACAD 98 Million 7½% 2003 Switzerland 19.5% Benelux 19.2% Far East 23.5% Other 1.8% UK 17.2% Germany 8.5% Offshore 6.0% Middle East 4.3% Total Sales: 118,878,000

  10. MFA of B.C.Market Timing – Issue #74 Government of Canada 10 year Yield Yield 5.372 High on 5/24/01 5.99 Average 5.5905 Low on 03/22/01 5.193 6.0 5.9 5.8 5.7 5.6 % April 4, 2001 MFA BC issue Canadas at 5.448% 5.5 5.4 5.3 5.2 Jan Feb Mar Apr May Jun Jul Aug 1. Issue #74

  11. 12 11 10 9 8 7 6 5 4 90 91 92 93 94 95 96 97 98 99 00 01 02 Canada Yields Over the Period (%) Canada Yields at time of Financing (%) MFA Net Over + Under - (%) 11.440 10.940 -.500 4.686 5.003 +.317 7.270 6.737 * -.533 Market Timing MFA vs 10 Year Canadas Total Amount Financed by MFA Over the Period $2,682,201,000 Total Number of Issues May 15, 1990 - August 1, 2001 26 High Low Average * weighted by principal amount financed

  12. Sinking Fund and CREF Cash Surpluses Plus Stop Payments ($ millions)

  13. 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

  14. Fax Subscription/ Redemption/Transfer Subscription via telephone Municipality CIBC – Mellon Global Securities CIBC Banking MFABC Phillips Hager & North Monthly Reports Pooled Investment Procedures

  15. How is the MFA funded?

  16. Pooled Investment Program

  17. 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

  18. MFA Pooled Investment Funds – Usage ($ x 1,000) $1,484,387.84

  19. 1998 1999 2000 2001 2002 2003 Leasing Pool Usage OverallJanuary, 1996 to December, 2003 $ millions Monthly Usage

  20. 1998 1999 2000 2001 2002 2003 Interim Financing ProgramJanuary, 1998 to December, 2003 $ millions Monthly Usage

  21. 2004 MFA Staff Steve Graham Marguerite Lorna Allison Renata Shelley Meagan Jane