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Board of County Commissioners <br /> Page 3 of 5 <br /> March 27, 2013 <br /> Projected Amount Percentage of <br /> Revenue Source FY 2012/13 Total <br /> State Payments $475,000 38.6% <br /> 4th Cent—Tourist Development Tax $386,334 31.4% <br /> Half-Cent Sales Tax $364,299 29.6% <br /> Interest Earnings $5,700 0.4% <br /> Total —All Sources $1,231,333 <br /> This bond issue carries a debt service coverage ratio of 5.5x. At the time of issuance, the bonds were <br /> rated "AAA" by Standard & Poor's and Fitch Ratings, based upon bond insurer ratings. Standard & <br /> Poor's and Fitch assigned underlying ratings of "A" and "AA-", respectively. Subsequent to the original <br /> issuance, Fitch Ratings has upgraded the underlying rating to "AA+". <br /> Recreational Revenue Refunding Bonds, Series 2003 <br /> The Recreational Revenue Refunding Bonds, Series 2003, were issued in the aggregate principal <br /> amount of$6,455,000. These bonds were issued for the purpose of refunding the County's outstanding <br /> Recreational Revenue Refunding Bonds, Series 1993 at a lower interest rate. The average interest <br /> rate for this issue was 3.65% (True Interest Cost). The 1993 Series was issued to refund the <br /> Recreational Revenue Bonds, Series 1985 and the Recreational Revenue Bonds, Series 1991, which <br /> were issued to provide funding for construction of the golf course. <br /> Debt service payments for this bond issue total approximately $640,000 annually. The bonds are <br /> secured by a first lien upon and pledge of: net revenues from operation of the golf course, the <br /> Racetrack and Jai Alai Fronton Funds, and 7% of the Half-Cent Sales Tax. <br /> Historically, the Sandridge Golf Course has operated at a profit, fully supported by user fees. <br /> Therefore, there has not been a need to utilize either the Racetrack and Jai Alai Fronton Funds or the <br /> Half-Cent Sales Tax to fund this debt service. For fiscal year 2011/12, the golf course experienced a <br /> gain of$762,049. <br /> The Series 2003 issue will reach final maturity in 2016. Based upon the strong financial results over <br /> the last couple years, staff anticipates that we may be able to retire this debt earlier than 2016. At that <br /> point, the golf course will have no long-term debt. After funding a reserve for ongoing renewal and <br /> replacement, this may allow for a slight decrease in greens fees as long as the course continues the <br /> current trends. <br /> F:\Budget\Jason\agenda 201213\Debt Issues Outstanding - Report to BCC.doc 205 <br />