2018 Annual Financial Report

NOTESTOTHE CONSOLIDATED FINANCIAL STATEMENTS  CITY OF SURREY

For the year ended December 31, 2018 [tabular amounts in thousands of dollars]

8. DEBT (CONTINUED) ii) Loans payable

2017

2018

$

13,010

$

12,570

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

19,069

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. Upon completion of the facility in 2018, the loan principal increased by $340,539 to $50,023,539.

49,683

36,755

$

81,762

Total Loans Payable

$

49,325

Sinking fund installments and loan payments over the next five years and thereafter are as follows:

Sinking fund installments and actuarial adjustments

Loan payments

Total 7,248 7,547 7,859 8,141 8,459

2019 2020 2021 2022 2023

$

5,988 6,227 6,476 6,735 7,005

$

1,260 1,320 1,383 1,406 1,454

$

2024 and thereafter

147,268 179,699

42,502 49,325

189,770 229,024

Total

$

$

$

Total interest expense recorded for the year ended December 31, 2018 was $10.5 million (2017 - $8.6 million).

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