The debt service schedules for Fenton, Missouri, are found in Exhibits 13.6 and 13.7. In Exhibit 13.7 why does the rate of interest that the city pays increase over time? Why does the city make two interest payments and one principal payment, in most years?

EXHIBIT 13.6 Debt service schedule for the Fabick Property.

EXHIBIT 13.7 Debt service schedule for RiverChase.

Both the initial PFA bonds and the certificates of participation that the City of Fenton used to fund the Fabick property and River Chase projects were non-guaranteed. They were backed not by the full faith and credit of the city but by operating revenues generated from the storm water/parks fund.

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City of Fenton, Missouri COPS Notes Series 2011 Fabick Property Purchase Debt Service Schedule DATE INTEREST RATE PRINCIPAL INTEREST NET PAYMENT ANNUAL DEBT SERVICE OUTSTANDING BONDS $2,225,000 1/1/12 2.00% $540,000.00 $30,408.33 $570,408.33 $570,408.33 1,685,000 7/12 16,850.00 16,850.00 1,685,000 1/1/13 2.00% 565,000.00 16,850.00 581,850.00 598,700.00 1,120,000 7/1/13 11,200.00 11,200.00 1,120,000 1/1/14 2.00% 585,000.00 11,200.00 596,200.00 607,400.00 535,000 7/11/14 5,350.00 5,350.00 535,000 1/1/15 2.00% Totals 535,000.00 $2,225,000.00 5,350.00 540,350.00 545,700.00 $97,208.33 $2,322,208.33 $2,322,208.33 January 1st payments considered part of the preceding year, actually made in December.