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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2015 NOTE 12 -LONG-TERM LIABILITIES - Continued B. Primary Government- Continued Limited General Obligation Refunding Note, Series 2015 Purpose - On April 7, 2015, the County voted to redeem $19,075,000 of outstanding 2006 Limited General Obligation Bonds with a 7 year note from Regions Capital Advantage, Inc. The refunding ultimately saved the County $1.2 million over the 7 year remaining life of the bonds. The initial commitment of the bonds and the subsequent note refunding is explained in the Limited General Obligation Bonds within the purpose section. The aggregate difference in debt service between the 2015 note ($28,959,008) and the 2006 bonds ($30,315,331) was $1,356,323. These amounts include the 7/1/2015 and 7/1/2016 principal and interest payments which were excluded in the refunding. The net economic gain was $636,694 and is amortized over the life (72 months) of the new debt. The unamortized balance of$588,058 is reflected as a deferred outflow of resources on the Statement of Net Position. This refinancing lowered the annual debt service by $150,000. Pledge of revenues — The principal and interest on the bonds are payable from the sole source of ad valorem taxes not exceeding 1/2 mil and having a maturity not exceeding fifteen years, which are levied by the County upon the taxable real and personal property of the County. The total tax revenue received was $4,795,927 of which 100% is pledged for payment of this note and the 2006 bond. Total principal and interest paid on this note was $397,017 and represents 8% of total pledged revenue. Maturity and Interest Rate - Interest payments are made semiannually beginning July 1, 2015 through July 1, 2021. Annual principal payments begin July 1, 2015 and end July 1, 2021. The interest rate is fixed at 1.66%. The note may be paid early without a prepayment penalty. 86