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Home My WebLink AboutORDINANCE 1277-1988u Ar"WL Suggested By: Administration CITY OF KHMAX ORDINANCE 1277-86 AN ORDINANCE OF THE COUNCIL OF THE CITY OF KENAI, ALASKA, - AMENDING KENAI MUNICIPAL CODS CHAPTER 22.05.045 (b) (1) BY , EXTENDING THS PERIOD OF TIME FOR WHICH A NOTE MAY BE WRITTEN FOR p PAYMENT OF CITY LANDS FROM TWENTY TO THIRTY YEARS. WHEREAS, presently the City Manager in setting terms for �l - --' - financing of sale of City lands pursuant to MIC 22.05.045(b)(1), -= - -- --; _ cannot accept a note exceeding twenty (10) years; and, - --' --- '.- --.- ;- WHEREAS, individuals having purchased City lands on twenty-year { notes are having difficulty in making payments; and, WHEREAS, increasing said notes from twenty to thirty years should alleviate hardship for purchasers during economically depressed i times. s ...-. ..: iiHEREAS, rewriting certain twenty-yeer notes accepted in sales of _. City lands to thirty-year notes may alleviate financial hardship for certain purchasers and may preclude defaults, foreclosures, and/or the turning back of property to the City; and, - WHEREAS, rewriting certain twenty-year notes for the longer term of thirty years at the same interest rate should result in _ :...'_' �.-..., additional revenues to the City in the form of increased ' interest; and, NOW THEREFORE, BE IT ORDAINED BY THE COUNCIL OF THE CITY OF :. KENAI, ALASKh, that RMC 22.05.045(b)(1) is amended as follows: 22.05.045 Terms for Financing Salle of City Lands: (a) In order to expedite and facilitate the sale of City lands, the City �:• -- - - Manager is hereby authorized to accept terms for said sales and may accept a note secured by a deed of trust for a ports.Nn of the purchase price thereof, subject to the following restrictions: - - (1) If the sale is to a lessee who has placed a lien for financing upon the land or improvements, then the City - - ' Manager is not authorized to sell the land except for total i cash payment, provided, however, that the City Manager may �.. a accept a note secured by a deed of trust subordinate to the existing security interest if the amount of the note thereby secured is within the difference between the fair market - value of the land with improvements,_ and .the- sum.. of. all L_ X r� 6 ) 14- prior socurity interests. The sale documents shall be subject to the same restrictions contained in the lease as the lease provides at the time of sale. (2) Prior to making a determination to accept a note and deed of trust from a prospective purchaser, the City manager shall secure a grantee index covering the party desiring to purchase the land from the title company int he recording district in which said party resides and also in the local recording district, and no credit will be advanced on such sale if there are any delinquent liens or unpaid judgments found in the title company report until any such judgments or liens are paid and releases therefor have been tiled. (3) In the event of a credit sale, the down payment required shall be determined by the City Manager, but shall not be less than fifteen percent (15%) of the sales price. (d) The City Manager is not authorised to accept terms for the sale of tax -foreclosed lands unless the down payment to be received thereunder, or other sums appropriated for the purpose, are sufficient to make immediate payment to the Kenai Peninsula Borough and the former record owner of the sums which are, or may become, due to them pursuant to the provisions of AS 29.53.380. (b) If the City manager determines that it is in the City's interest to sell City lands, the sale shall be either a cash transaction or by a note secured by a deed of trust, subject to Paragraph (a) above, and by no other means. The note and deed of trust shall carry terms as follows: (1) The term of such note may be set by the City Manager, but is shall provide for monthly payments and not exceed [TWENTY (20)j thirty (30) years unless a longer period for a specific sale of land is approved by resolution of the City Council. (2) Such note shall bear interest at a rate to be determined by the City Council by resolution. (Ords. 612, 711, 1001) PASSED SY THE COUNCIL OF THE CITY OF KENAI, ALASKA, this 17th day of August, 1988. JOHN J. WILLIAMS, MAYOR ATTEST: Janet Ruotsala, City Clerk First Reading: August 3, 1988 Second Reading: Alagust 17, 1988 Effective Date: September 17, 1988 Approved by Finance: �A (7/29/88) -2- - ./, . -'-----•-----------------------------•------____-_ -- -------_-__----- _ .. ... " EXAMPLE QF 20 YEAR PAYOFF' 07-19-1989 12 : 05: 58 Pg --__- . ------------------------------------------------------------------------ i Compounding interval: Month I y - -- — 4 � Annual percentage rate......: 10.000% Effective annual rate.......: 10.47196 .� Rate per compounding period.: 0.833376 ' Equivalent daily rate.......: 0.02740% Valuation date: 07-10-1988 Value: $ 100,000.00 CASH FLOW DATA - ------------------------ -., =-- `- --- First date Paymentamount-#- Interval Last date -=---- - - __---------------------------------------------------------------------------- 08-19-1980 $ 965.02 240 Ila - - Monthly 07-19-2000 --- - -- - -L ----- - - 01 ` MiORTIZATION SCHEDULE Normal amortization Pmt Date Payment Interest Principal Balance Balance at 07-19-1988 100,000,00 :. 1968 totals 4,025.10 4,155.60 669.50 99,330.50- — �---- _ 1969 totals 11,580.24 9,855.41 1,724.83 97,605,87 1990 totals 11,580.24 9,674.61 1,905.43 95,700.24 ' 1991 totals-- 11,580.24-- • - - 9,475.28 __._.__.. 2,104.98 .. 93,595.28. yl 11! 1992 totals 11,880.24 9,254.86 2,325.38 91,269.90 - ,,• 1993 totals 11,580.24 9,011.36 2,568.08 88,701.02 1 1994 totals 11,580.24 8,742.38 2,837.86.-- 1095 totals 11,580.24 8,445.23 3,135.01 82,729.15 - 1996 totals 11,580.24 = 8,118.93 3,463.31 79,264.94 - 1997 totals 11,500.24 7,754.27 3,825.97 75,436.87 loge total: 11,580.24 7,353.65 4,226.59 71,212.20 1999 totals 11,580.24 6,911.08 4,669.16 66,543.12 it h U _J 1. 1 1 - --ww wwww ww wr rwwr-nnwwww-w wwww_nwwrnw wwww wnrwwr-rrrrr nnrrww rrrw-ww:wwwr.nwr�.r+- S ' •' ' .. EXAMPLE OF 20 YEAR PAYOFF 07-19-1988 12.05i513 P 2 ---w....-...._......------------------..ww-,----w--..--rwrnw_www------.----------n,.www� Pmt Date Payment interest Principal f3alAnce ' '• i 2000 totals 11,590.24 6,422.10 5,156.00 61,385.011 2001 totals 11,580.24 5,062.03 5,698.21----- - 55,686.83----- 2002 totals 11,580.24 5,205.35 6,294.89 49,391.94 i. ",' •' 2003 totals 11,500.24 4,626.20 6,954.04 42,437.90 - 2004 totals- 11,580.24 3,898.02 7,682.22 -• 34,755.66 2 �, 2005 totals 11,580.24 3,093.57 9,486.67 26,269.01 n 2 006 a' s.. total 11,580.24 2,204.93 9,375.31 16,893.70 13 .. 2007 totals 11,580.24 1,223.20 10,357.04 6,536.66 -.- -- �.' 2008 totals 6,755.14 218.48 6,538.66 0.00 Grand totals 231,604.80 131,604.80 100,000.00 1r , • i --------------------------------------•---------------------------------------- mx:" EXAMPLE OF 30 YEAR PAYOFF ---•---------------__----------------------------------------------------------- 07-19-1980 12:08:46 P9 1 ...�.:; � Campnunding intervals Monthly s Annual percentage rate...... s 10.000% Effective annual rate.......: 10.471% Rate per compounding period.: 0.833396 Equivalent daily rate ....... 0.02740% Valuation dates 07-19-1980 Value: $ 100,000.00 CASH FLOWDATA -- --------------- ----------------------------------------------- - — First date P&yment amount ->lp Interval Last date -. -. ��:• �._..,.. _,.;: -:. . `€ � _ _ 08 19 1988 $ 877 57 360 1 _ Monthly 18 _ 2018----------------------- AMORTIZATION ySCHEDULE Normal amortization-------------------.-____.__..__�_-- Pmt - - Date - Payment Interest Principal ------------------------------------------------------------- --1 at 0719-1988 10 0,000.00 1980 totals 4,387.85 4,162.94 224.91 99,775.09 1989 totals 10,530.84 9,951.42. 579.42- 99,195.67 1990 totals 10,530.64 9,890.75 640.09 90,555.58 n ^Q 1991 totals 10,530.84 9,823.73 707.11 97,840.47 1992 totals 10,530.84 9,749.69 781.15 97,067.32- -..•- 1993 totals 10,530.84 9,667.88 862.96 96,204.36 ,' 1994 totals 10,530.04 9,577.63 953.31 95,251.05 1995 totals 10,530.84 9,477.73 1,053.11 94,197.94--•_.•---_�_.-. ` 1998 totals 10, 530.84 9,367.42 1,163.42 93, 034.52 `. 1997 totals 10,530.94 9,245.63 1,285.21 91,749.31 ' • 1998 totals 10, 530.84 - 9,111.04 1,419.00 90, 329.51 •-------•--- -- ''i.; -1999 totals - - 10,5 30.84 - - - 8,962.37 -1,568.47 60,761.04 - .._ .. --_.---- --- - _ =------------- -- ...;. • - . ft} Y: A ------------------------------------------------------ E)WPLE OF 30 YEAR PAYOFF 07-19-1988 12:08:46 Pg 2 ---------------------------------- ..-------------------------------- - - -- - Prot Date Payment Interest Principal Balance - r, 2000 totals 10,530.04 8,798.12 1,732.72 07,020.32 � 2001 totals 10,530.04 8,616.66 1,914.16 85,114.16 2002 totill s 10,530.8h 8,416.21 2,114.63 82,999.53 2003 totals 10,530.84 8,194.81 2,336.03 80,663.50 2004 totals 10,530.84 7,950.19 2,580.65 78,002.85---__ 2005 totals 10,530.84 7,679.97 2,850.87 75,231.98 2006 totals 10, 530. 84 7,381.44 3,149.40 72, 002.58 2007 t t 1 10 S30 84 7 051 68 3 479 18 68 603 40 3 2008 totals 10,530.84 6,607.35 3,643.49 64,759.91 . 2009 totals 10,530.84 8,204.89 4,245.95 609513.88 --- --- ,.. 2010 totals 10,530.84 5,040.27 4,690.57 55,823.39 " 2011 totals 10,530.84 5,349.11 5,181.73 50,641.66 ' 2012 totals 10, 530.84 4,806.53 5,724.31 44 917.35 •Co 2013 totals 10,530.84 4,207,.11-.__. _._---.-6,323.73 38,593..62-.-- 1•:„ 2014 totals 10,530.04 3,544.93 6,985.91 31,607.71 2015 totals 10,530.04 2,813.41 7,717.43 23,090.20 1 2016 totals 10, 530.84 2,005.30 8, 525.54 15, 364.74 ,.. �._...� . 2017 totals 10,530.84 1,112.55 9,416.29 5,946.45 2018 totals 6,142.99 196.54 5,946.45 0.00 Grand totals 315,925.20 215,925.20 100,000.00 _ _... ,,..,. r, . .. .......... k . 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