Questions regarding the $10.5 M bond

Earlier today, I sent an email to the Mayor to get some additional questions answered regarding the once again increased $10.5 M bond.  During the public hearing, time to get these answers was limited and some information was not available.

Hello, Mr. Mayor.  Per your suggestion at the meeting last night, I am submitting these additional questions that I was unable to get answers to during the time you allotted me. 

What existing debt items are not being refinanced into this $10.5 M bond?

What is the approximate balance of that remaining debt not being refinanced, including interest?

In addition to the approximate $702 K annual payment on the proposed $10.5 bond, what additional annual payments will be required on the remaining debt service not being included in this refinance?

What is the approximate total debt figuring in the remaining debt not being refinanced, plus the new $10.5 million bond debt plus interest?

Are there any restrictions on the use of these funds to pay off the impact fee monies, plus penalties, owed to the county, similarly like were stipulated in the proposed BB&T deal that fell through last year?

Regarding the impact fee money owed to the county, what is the current amount owed, including penalties, if any? The paper has printed some information on this issue that implies there may be more money due now, due to some penalties on top of the roughly $500 K that was originally owed. Is this correct? If so what are the terms the county is now requesting?

Thank you in advance for your timely response to my inquiries.

Sincerely,
Lisa B. Shifflett

In addition to these questions, I did get answers during the meeting for the following questions:

I was able to confirm, through Pam Lawson, that this newly raised $10.5 M bond will be subject to a standard amortization schedule, without any special terms.   So the information I had calculated on my previous blog post was correct.  With a 30 yr term at 5.25% will result in over $10.5 M in INTEREST ALONE, and will end up costing the tax payers over $21 Million over the term of the loan, plus another $267 K in insurance which enabled the interest rate to be lowered from 5.8% and improved the bond rating from an A- to a AA, 4 steps higher on the bond rating scale than what it would have been.  Based on the council's response to this information, it was unclear if they had previously done the math and already knew how much this was really costing us or if they were merely trying to keep their poker faces.  Despite the fact that this bond will more than double the city's debt in one fail swoop didn't seem to bother the Mayor, Vice Mayor, or Councilman Blethen in the slightest.  Sad.

What is the current annual payment on the existing $11.something Million debt?  

Approximately $821K   

Mr. Cloud took this opportunity to reinforce the fact that the city would be "saving" money by doing this bond refinance when compared to the $702 K that will be the annual payment on the new $10.5 M bond deal.  Mr. Cloud neglected to mention how much additional money would also be due annually on remaining debt that was not being included in this refinance to have a true comparison.  Hopefully, the questions I sent the Mayor will give us a more accurate figure.