|
Indian River County, Florida
<br />Notes To Financial Statements
<br />Year Ended September 30, 2012
<br />NOTE 13 - LONG-TERM LIABILITIES - Continued
<br />B. Primary Govermnent - Continued
<br />Water and Sewer Revenue Refunding Bonds, Series 2005 - Continued
<br />The aggregate difference in debt service between the Series 1996 ($40,585,193) and Series 2005
<br />($39,619,193) is $966,000. The net economic gain, which included shortening the term of the bonds by
<br />four years and lowering average annual debt service by $242,000, was $2,944,661 and is amortized
<br />over the life of the bonds. The unamortized balance of the deferred amount on the refunding at
<br />September 30, 2012 is $1,684,686 and is reflected as a deferred outflow of resources on the Statement
<br />of Net Position.
<br />Pledge of Revenues - The revenue bonds are collateralized, for the remaining term of the bonds, by a
<br />pledge of all net revenues derived from the operation of the system, certain surcharges, and special
<br />assessments.
<br />Annual principal and interest payments of $2,405,250 represent approximately eighteen percent of net
<br />revenues of $13,217,926 of the utility system. The total principal and interest remaining to be paid on
<br />the bonds is $24,047,900.
<br />Rate Covenant — Net revenues shall be sufficient to pay 100% of the reserve account requirement and
<br />120% of the current year's principal and interest payment.
<br />Bonds Issued - At September 30, 2012, the revenue bonds consisted of the following:
<br />Description
<br />Water and Sewer
<br />Revenue Refunding Bonds,
<br />Series 2005
<br />Interest
<br />Rates and
<br />Date
<br />3-5%
<br />3/1 and 9/1
<br />Maturity Issue
<br />Outstanding at
<br />September 30,
<br />2012
<br />2022 $ 27,675,000 $ 19,010,000
<br />Outstanding In -Substance Defeased Debt - The proceeds from the refunding have been invested in
<br />federal securities and were placed in an escrow account with J.P. Morgan. All of the defeased bonds
<br />($31,680,000) were called on September 1, 2006 at 102% of the outstanding principal amount.
<br />Optional Redemption - The Series 2005 bonds maturing after September 1, 2015, are subject to
<br />redemption by the County on or after September 1, 2015, in whole or in part, at par, plus accrued
<br />interest to date of redemption.
<br />Water and Sewer Revenue Refunding Bonds, Series 2009
<br />Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009,
<br />$28,270,000 of the County's outstanding Water and Sewer Revenue Bonds, Series 1993A. The
<br />refunding excluded debt service payments due September 1, 2010 and 2011, which were consequently
<br />paid at their respective maturity date.
<br />82
<br />
|