The next “Interest Only” payment in June on the mortgage of the Countryside Golf Course Property will bring interest paid to date to well over 1/2 million dollars. The total financed was $3,975,000 dollars for 15 years at 6.25%.
This is the email response from the Roanoke City Finance Department:
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