|
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 Government - Continued
<br />Water and Sewer Revenue Refunding Bonds, Series 2009 - Continued
<br />The aggregate difference in debt service between the Series 1993A ($80,434,415) and Series 2009
<br />($78,755,772) is $1,678,643. The net economic gain, which lowered average annual debt service by
<br />$126,000, was $1,368,427 and is amortized over the life of the bonds. The unamortized balance of the
<br />deferred amount on the refunding at September 30, 2012 is $1,083,338 and is reflected as a deferred
<br />outflow of resources on the Statement 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 />The interest payments of $2,878,200 represent approximately twenty two percent of net revenues of
<br />$13,217,926 of the utility system. The total principal and interest remaining to be paid on the bonds is
<br />$33,094,100.
<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 />Outstanding at
<br />Interest Rates September 30,
<br />Description and Date Maturity Issue 2012
<br />Water and Sewer 4-5%
<br />Revenue Refunding Bonds, 3/1 and 9/1 2024 $ 26,370,000 $ 24,760,000
<br />Series 2009
<br />Outstanding In -Substance Defeased Debt - The proceeds from the refunding were invested in federal
<br />securities and were placed in an escrow account with Bank of New York/Mellon. All of the defeased
<br />bonds ($28,270,000) were called on September 1, 2009 at 101% of the outstanding principal amount.
<br />Optional Redemption - The Series 2009 bonds maturing on or prior to September 1, 2019, are not
<br />subject to redemption prior to their respective dates of maturity. The Series 2009 bonds stated to mature
<br />after September 1, 2019, are subject to redemption at the option of the County in whole or, from time to
<br />time, in part on September 1, 2019, at the redemption price of the principal amount to be redeemed,
<br />plus accrued interest to the date of redemption.
<br />C. Compensated Absences
<br />For the governmental activities compensated absences liability, the general fund normally liquidates 71
<br />percent, and the Transportation and Emergency Services District funds normally liquidate 6 percent and
<br />9 percent, respectively. The remaining 14 percent is liquidated by the other governmental and internal
<br />service funds.
<br />83
<br />
|