$30,000,000 Sinkers for a 25 and 20 year Amortization. (For my bean counting readers)

To take the mystery out of the Debt Servicing Amount required per year for a 25 year amortization ($2,190,359) or the Debt Servicing Amount required per year for a 20 year amortization ($2,477,452) you can click on the following two tables to enlarge. These are the figures arrived at and revealed on the City's website and they are both calculated at a 4.90% rate which is the rate used for the City's projections.

If we used the current 25 and 20 year interest rates of 5.75% as published on the MFA site and is updated weekly then the yearly requirement for the 25 year term would be $2,445,358 (an increase of $254,999 and the yearly requirement for the 20 year term would be $2,732,452 (an increase of $255,000)

As a way of illustrating the $255,000 extra we can express it as a further 1.645% increase on 2008 taxes as each 1% increase is currently $155,000.
























MFA WEBSITE:
CURRENT MARKET RATES
These rates updated weekly, and are subject to market fluctuations.

5 year:	4.250%
10 year:	4.550%
15 year:	5.650%
20 year:	5.750%
25 year:	5.750%
30 year:	5.750%

CURRENT RATES for January 7, 2008

Leasing:	5.000%
Interim Financing:	4.879%

NEXT MFA DEBENTURE ISSUE (BUDGETING INFORMATION)

Expected borrowing date:	March, 2008
Projected borrowing term:	10 Year
Projected 10 year debenture rate:	4.750%
Bylaws that exceed this term will be refinanced, or can lock-in for the full bylaw term (see below)

INFORMATION FOR BORROWERS WHOSE BYLAWS EXCEED 10 YEARS

MFA members have a choice:

1. be refinanced in 10 years at future market rates.

2. ask to be locked-in for the full term of their bylaws.

3. accept the 10 year financing rate and at any time before the 10 year period expires, ask the MFA to lock-in the remaining term of the bylaw.