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Board of County Commissioners <br /> Page 5 of 5 <br /> March 27, 2013 <br /> Standard & Poor's in December 2012. Moody's Investor Services currently rates these bonds "Aa2" as <br /> well. <br /> It should be noted that the last time the Utility needed to issue debt for system expansion was 1996. <br /> The Series 2005 and 2009 bonds were refunding of the 1993 and 1996 issues. Therefore, the utility <br /> has cash funded the expansion of the system for the last sixteen (16) years. This exhibits that the <br /> impact fees and rates of the system are sufficient to fund the capital and renewal and replacement <br /> needs of the system. <br /> Summary <br /> Overall, the County has a very low debt level based upon the main indicators of local government debt. <br /> Total debt per capita stands at $644 as of September 30, 2012, down from a high of $1,062 at the end <br /> of fiscal year 2005/06. Current debt outstanding represents 1.43% of annual personal income. <br /> Additionally, all long-term debt support by local funds will be paid off by 2024. Within that timeframe, <br /> about half of the current debt will be repaid by the end of fiscal year 2017/18—without accounting for <br /> the anticipated early retirement of the Water& Sewer Revenue Refunding Bonds, Series 2005. <br /> The current low debt load is attributable to several factors. First, the County has been conservative <br /> with the use of long-term debt. This is consistent with the County's Debt Policies, which provide <br /> limitations on the use of debt by the County. Additionally, the County has had a policy of using impact <br /> .. fees to fund a large portion of new infrastructure needed to serve new growth. This concept of new <br /> growth paying for itself has prevented the need to burden existing residents to par for such <br /> improvements. The One Cent Sales Tax, as approved by the voters, has allowed the County to cash <br /> fund capital infrastructure needs rather than borrow for these expenses. <br /> Attachment <br /> Long Term Debt Section from County's Annual <br /> Budget Book for FY 2012/13 <br /> APPROVED AGENDA ITEM: <br /> BY: C, <br /> Jose h A. Baird <br /> County Administrator <br /> FOR: April 2, 2013 <br /> Indian River County Approved Date <br /> Administrator Nq <br /> County Attorney �0_ 3,•z7- 3 <br /> Budget 7X 1 <br /> 3 Z�l3 <br /> F:\Budget\Jason\agenda 2012 3\Debt Issues Outstanding - Report to BCC.doc 207 <br />