Our city employees are very hardworking. The Finance Department has been especially responsive to my requests. If you had not noticed by now I ASK questions. This is more than I can say for current Council members – at least publicly. The principal starting out was $3,975,000. Not much of a dent in principal but that’s how it is with amortization. What do you suppose we could do with this General Fund money other than paying this interest rate of 6.25%? Do you think that the City should go into the real estate business with our tax dollars? Not only is the City paying a high interest rate on this mortgage but they have lost the $50,000 plus a year in real estate taxes that Meadowbrook was paying when they owned the Countryside Golf Course property. Meadowbrook leases the golf course from the City for $17,500 a year. Meadowbrook then leases the tennis building for about the same amount. Prior to this year the tennis building was leased for $22,500 a year. The City refuses to lease it directly to the lessee. Meadowbrook seems to have a sweet deal so I don’t blame them for hanging around to reap the $300K profit every year. he spent that interest on rather than the City going into the real estate business.
Wednesday, March 19, 2008 3:23 PM
My apologies for taking a few days to respond. We are in daily budget meetings, so things are a tad busy. The answers (A) to your questions (Q) are as follows:
Q – Can you please confirm that the same financing is in place with the now named Carter Bank & Trust that you communicated to me previously.
A – Yes, that is correct. Previously, it was First National Exchange Bank.
Q – What is the payment amount – I believe you indicated it was every 6 months and not monthly.
A – Payments are made semi-annually. Interest is paid in both June and December, while principal reductions are made annually in December. Principal payments are $265,000 per year, and interest payments decline as the principal balance is reduced. The bonds will be paid off in December 2020. The principal balance is currently $3,445,000.
Q – What is the interest paid to date. Where is the payment coming from -the General Fund?
A – Interest to date totals $470,651. Debt payments are funded from the City’s General Fund which is consistent with all general government projects.We trust these responses will provide you the information you need. If you have other questions, please do not hesitate to contact us again.
CPA Deputy Director of Finance City of Roanoke
Posted By Valerie Garner
Tags: FOIA, open_government