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. ~1.___.._.__._..~__._ , -. -- - - <br />-.ii, ~ ~ ' <br />7` - / <br />__t <br />Percent of bond proceeds used for acquistion 4 <br />557,163/714, 000 78.034% ' <br />Interest Fa id to Date <br />$505,770 x 78.034% _ $394,672.56 ' <br />Future Interest Expense <br />ij <br />`~ <br />In addition to the interest expense paid to date the City will <br />incure interest expense until the bonds are matured. Since the <br />City would have access to the money now, future interest payments <br />should be discounted using a present value factor. A present value <br />,factor using 13% (money can currently be invested around 14% but <br />conditions may change) was applied to each year's interest payment. <br />Using this present value, future interest payments would. total <br />$188,186.83 <br />$188,186.83 x.78.034% _ $146,849.71. <br />..Summary <br />When interest expense of $541,.522 is added to historical cost, <br />previous calculated at $651,541, the City has incurred $1,193,063 <br />in the. acquisition of Long Lake Park property. <br />cc John Grau, Acting Director of Finance <br />Maurice Anderson, Director of Parks and Recreation <br />~,: <br /> <br />