CDBG Loan
In fiscal year 2003, the City received $2,400,000 in Section 108 loan proceeds to assist with the funding for the Balboa Village Improvement Program. The loan is collateralized by future Community Development Block Grant allocations. The original loan was refinanced in fiscal year 2015 lowering the average interest rate from 6.5% to 1.5%. Future principal payments range from $150,000 to $208,000 through June 30, 2023. The outstanding balance at June 30, 2017, amounted to $1,066,000.
The annual amortization requirements of the CDBG Loan
| YEAR ENDING JUNE 30 |
PRINCIPAL |
INTEREST |
TOTAL |
| 2019 |
$ 160,000 |
$ 17,561 |
$ 177,561 |
| 2020 |
171,000 |
14,890 |
185,890 |
| 2021 |
182,000 |
11,480 |
193,480 |
| 2022 |
195,000 |
7,387 |
202,387 |
| 2023 |
208,000 |
2,548 |
210,548 |
|
|
$ 916,000 |
$ 53,866 |
$ 969,866 |