2017 Finance Annual Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2017 [tabular amounts in thousands of dollars]

8. DEBT (CONTINUED) ii) Loans payable

2016

2017

SCDC: Cedar Hills loan payable, Citizen’s Bank of Canada, 10-year term maturing November 1, 2022, payable in monthly payments of $78,497, including interest calculated at a rate of 3.95% per annum, secured by a mortgage on the commercial property SCDC: Term loan, Beedie LP, 5-year term maturing November 1, 2021, payable in monthly payments of $90,473, including interest calculated at the BA Swap Rate plus 1.60% per annum, secured by a mortgage on the commercial property SCDC: Construction loan, Surrey Centre LPs, in the form of bankers’ acceptances, bearing interest at the bank’s prime lending rate, secured by the underlying property, and repayable upon the earlier of the receipt of the net proceeds from sales, take-out financing, lease prepayments, or upon the maturity date of August 31, 2018 Biofuel Processing Facility: 25 year contract with Orgaworld Canada Ltd., payable in monthly payments of $221,516 including interest calculated at a rate of 5.10% payable in accordance with the project agreement terms

$

13,433

$

13,010

9,727

-

10,409

19,069

-

49,683

$

33,569

Total Loans Payable

$

81,762

Sinking fund installments and mortgage payments on net outstanding debt and loans payable over the next five years and thereafter are as follows:

Sinking fund installments and actuarial adjustments

Loan payments

Total

2018 2019 2020 2021 2022

$

5,757 5,988 6,227 6,476 6,735

$

32,391

$

38,148

1,240 1,299 1,361 1,382

7,228 7,526 7,837 8,117

2023 and thereafter

154,274 185,457

44,089 81,762

198,363

Total

$

$

$

267,219

Total interest expense recorded for the year ended December 31, 2017 was $8.6 million (2016 - $8.8 million).

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