1.129 Debt - Vancouver Island Regional Library
This service is for the CRD to borrow funds from the BC Municipal Finance Authority (MFA) and, under an agreement, to re-lend those funds to the Vancouver Island Regional Library (VIRL). The funds are to build a replacement library situated in the District of Sooke.
VIRL advised the CRD that they wished to build a new library for the benefit of their members within the CRD area. VIRL does not have direct access to borrow from the BC Municipal Finance Authority (MFA) and wished to benefit from the services and interest rates available through the MFA. The Community Charter, section 179 (1)(b) empowers regional districts to borrow money to lend to a public authority under an agreement. On October 14, 2015 the CRD board adopted Bylaw No. 3914 "Vancouver Island Regional Library Borrowing Service Establishment Bylaw No. 1, 2014." This bylaw established a service to borrow up to $6 million to lend to VIRL under an agreement.
This service is for one time capital financing and consists of debt servicing payments only, which under the agreement with VIRL are paid by VIRL directly to the MFA.
The service is administered by the CRD Finance Department.
The budget for the service is established through an annual CRD Financial Planning process. There is no direct taxation by the CRD for this service as VIRL is responsible for making the annual debt servicing payments directly to the MFA. If there is a default in payments, the CRD would levy a requisition in the municipalities of Sooke and North Saanich and in a portion of the Juan de Fuca electoral area.