Who is the Municipal Finance Authority?
A Collective Structure
The Municipal Finance Authority of British Columbia (MFA) was created in 1970 to contribute to the financial well-being of local governments throughout BC. The MFA pools the borrowing and investment needs of BC communities through a collective structure and is able to provide a range of low cost and flexible financial services to our clients equally, regardless of the size of the community. The MFA is independent from the Province of British Columbia and operates under the governance of a Board of Members appointed from the various Regional Districts within the province.
What does the MFA Do?
The MFA provides long-term, short-term, and equipment financing, investment management, and other financial services to communities and public institutions in BC.
You may already be familiar with some of the work that we have done to help build BC communities:
funded almost $25 billion dollars for essential infrastructure,
pooled long-term borrowing needs to negotiate low-interest rates and favourable terms each year, and
- have saved BC taxpayers millions of dollars in debt repayments due to our high credit rating, and low interest rates.
Discover How We Can Help Your Community Grow
If you have only used MFA's long-term borrowing program, perhaps it is time to take advantage of our other financial services. We can save you money, provide quick and easy access to funding, and help you build your community.
Since MFA's credit rating exceeds those of chartered banks, our borrowing rates are less than those offered by banks. These savings in interest costs are passed on to BC's local governments.
We also offer funding opportunities for educational institutions, workshops to assist communities deal with change and provide strategic guidance as well as offer a complimentary financial forum for local government staff and elected officials on topics of interest.
The MFA charge a nominal fee of several basis points on its services in order to fund operations and maintain necessary capital reserves. This source of revenue is now 45% of our annual budget. Our revenue sources are from pooled funds but also lending margins and sinking fund fees. Revenues from the investment pools and other financial services continue to grow.
For more information or questions about the MFA, please email us.
Expansion of the Mandate
Since its founding, the MFA has focused on providing long-term capital financing for its clients. By 1989, it became obvious that the structure and credit of the Authority could be used for purposes other than capital borrowing. As a result, the objectives and activities of the MFA have been expanded to include investment opportunities, and several short-term borrowing options. These are optional products with competitive rates.
Extending the Membership
The MFA Act was amended to extend the pooled investment fund and short-term financing programs to other public institutions in the province. The Authority also took on other capital financing commitments. In 1995, the MFA assumed all new obligations of the Utilities that earlier had been financed through the Province. In 1998, we did capital financing for E-Comm, and in 1999 we did capital financing for the Greater Vancouver Transportation Authority and the regional hospital districts outside of the Metro Vancouver Regional District. To find out if you are eligible to participate in one of our programs, please email our office.