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e <br /> • <br /> Structure of the Internal Loan: <br /> $365,000 <br /> Term 10 Years <br /> Interest Rate 5% <br /> Declining Principal <br /> Year Principal Interest Total Cost <br /> 2004 $ 9,125 $ 9,125 <br /> 2005 $ 36,500 $ 18,250 $ 54,750 <br /> 2006 $ 36,500 $ 16,425 $ 52,925 <br /> 2007 $ 36,500 $ 14,600 $ 51,100 <br /> 2008 $ 36,500 $ 12,775 $ 49,275 <br /> 2009 $ 36,500 $ 10,950 $ 47,450 <br /> 2010 $ 36,500 $ 9,125 $ 45,625 <br /> 2011 $ 36,500 $ 7,300 $ 43,800 <br /> 2012 $ 36,500 $ 5,475 $ 41,975 <br /> 2013 $ 36,500 $ 3,650 $ 40,150 <br /> 2014 36,500 $ 1,825 38,325 <br /> $365,000 $109,500 $474,500 <br /> The total amount of the payments for the internal loan is $75,000 less than borrowing the <br /> money through the issuance of a liquor revenue bond. <br /> Recommendation: <br /> Council authorize an internal loan(not to exceed $400,000) to fund the new SAV II <br /> liquor store. The term of the loan is 10 years; interest is based on declining principal at a <br /> rate of 5%. <br /> • <br />