ACFA Business Plan
2009 - 2012

• To provide local authorities within the province with flexible funding for capital projects at the lowest possible cost, consistent with the viability of ACFA.

• To act with integrity and with respect.
• To act co-operatively with all stakeholders.
• To communicate effectively and provide quality service to our shareholders.
• To strive for excellence and innovation.
• To foster an atmosphere of teamwork.

The following are the core results that ACFA intends to deliver from now until December 2012:

1. To meet the needs of our shareholders for capital funds and information.

Goals:

• Provide information, advice and guidance to shareholders for borrowing and prepayment activities.
• Provide flexibility to borrowers by offering a range of borrowing alternatives including alternative payment options.
• Increase shareholder awareness of ACFA through direct contact at AUMA and AAMD & C conferences.

Strategies:

• Review the interest rate risk model based on KPMG's analysis and recommend any changes thereto and provide plan to implement the approved changes in 2009.  (Recommendations by March 31, 2009)
• Maintain a borrowing model, which reduces market risk to the Authority and continues to offer borrowing flexibility for our shareholders.
• Provide information, advice and guidance to shareholders for borrowing and prepayment activities including online access to debenture payment calculations, debt limit, service limit calculations and improve communication between shareholders and directors. Review and modify our website and consider establishing an online application system, prepayment calculation program, access to loan information and communication links, if cost effective.  (December 2009)
• Survey our shareholders bi-annually to measure their level of awareness of ACFA and satisfaction with ACFA services.  (January 2009)
• Provide assistance and information to the Departments of Municipal Affairs, Infrastructure, Education, and Advanced Education and Technology as required.

Performance Measures:

• Cost to Alberta local authorities of borrowing from ACFA compared to other municipality/aggregating agencies for a comparable loan.
  TARGET - Alberta local authorities have the lowest borrowing costs.
• Satisfaction level as measured by our survey for services such as assistance/coaching and timeliness of processing loan applications.
  TARGET - 85%.

2. Continued financial viability.

Goals:

• Minimize borrowing costs and maximize investment income subject to acceptable risks.
• Maintain a loan loss provision of 0%.
• Manage the activities of the Authority to maintain a positive minimum equity.
• Maintain a Board Governance process that ensures ACFA carries out its responsibilities to its shareholders in an effective and transparent manner.

Strategies:

• Maintain a positive minimum equity and manage the current loans/debt issued on a breakeven basis.
• Maintain access to capital markets for short-term and long-term financing through Alberta Finance and Enterprise.
• Annually review the Authority’s policies with respect to credit, investment and interest rate risk.  (December 31, 2009)
• Continue to use alternative financial products to manage the asset/liability portfolio.
• Maintain a credit review process for borrowers that are not subject to the Municipal Government Act, who have exceeded borrowing limits established under the Municipal Government Act, are refinancing, or who appear to be in financial difficulty.
• Update the Authority’s loan and financial reporting system.  (June 30, 2009)
• Review the Authority's cash management system.  (include in ALB review)
• Maintain an effective Board governance model and prepare and annually review Board evaluations.  (April 30, 2009) 
• Maintain a Board Governance Handbook which includes an Orientation Program for Board members.  (ongoing)
• Provide the Board with a succession plan for the President.  (March 2009)

Performance Measures:

• Cost of operating ACFA in comparison to other Canadian municipal financing corporations.
  TARGET - maintain the lowest:
  • Cost of administration per $million of outstanding loans
  • Cost of administration per $1000 of new loans issued

See also:

Link to Finance and Government of Alberta Business Plans.