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�gcvER c c oz 2012/2013 Budget Long Term Debt Long Term Debt Analysis Composition Of Long Term Debt The State of Florida does not impose any debt limitations on counties; however, the Indian Water&Sewer River County Board of Commissioners has been 2005 very conservative in the past regarding financial 21% issues. It is reasonable to expect that this inclination will continue in the future, so County debt levels should remain at fairly low levels for the near future. These philosophies are outlined Land in the County's Debt Policies (please see the POLICY portion of this document), and are Dodger Acquisition depicted in the graphs and narratives throughout Facility =, 2006 this section. 12% 37% Recreation Indian River County's outstanding debt at the Rev.2003 end of FY 2011/2012 stands at $89,350,000 2% Water&Sewer comprised mostly of revenue bonds. Enterprise 2009 Funds support 51% of the overall debt (Utilities 28% Department 49%; and Golf Course 2%), leaving about$43,460,000 or 49% in bonds paid from General Governmental funds. The only general obligation(G.O.) bond outstanding is a voter approved G.O. issue for land acquisition. It should be noted that in the State of Florida, G.O. bonds may only be issued after a voter referendum to approve them is passed. In 1992,the voters approved the issuance of$26 million in bonds for the acquisition of environmentally sensitive lands. On April 10, 2012 the Board of County Commissioners approved early payoff of the remaining outstanding principal in the amount of$3,620,000. The calling of these bonds saved taxpayers $392,057 in interest payments over the remaining duration of the bond. In 2004, the voters of Indian River County approved a referendum to issue an additional $50 million for land acquisition. Historic and agricultural lands were added to the approved purchases under this referendum, whereas the earlier vote only authorized environmental lands. In June 2006, Indian River County issued the 2006 Series Limited General Obligation Bonds in the principal amount of$48,600,000 at an average interest rate of 4.22% (true interest cost). These bonds have been used to acquire lands as approved in the referendum. The proposed list of lands for purchase has an estimated cost of over $100 million. Matching grants will be utilized when available in order to leverage the bond proceeds. In fiscal year 2008/09, the County issued the 2009 Series Water & Sewer Revenue Refunding bonds in the aggregate principal amount of$26,370,000. These bonds were issued in order to refund most of the remaining 1993A Series bonds still outstanding and realize an interest savings. Approximately $3 million of the original issue was not refunded due to their short remaining duration and lack of savings. These bonds reached final maturity last fiscal year. The refunding resulted in a decrease of about$250,000 in annual debt service over the life of these bonds for a net present value savings of over$2.9 million. Indian River County voters originally approved the levy of the Optional One-Cent Sales Tax in March 1989 for a period of fifteen (15) years. Optional Sales Tax can be used for financing, planning, and constructing infrastructure for public purposes within the County. The One-Cent Sales Tax revenues have allowed the organization to fund general government, public safety, and transportation infrastructure with cash instead of long-term borrowing. On November 5, 2002, the voters approved a referendum extending the sales tax for another 15 years and 7 months (until December 31, 2019). This should allow the County to continue to fund 332 208