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INDIAN RIVER COUNTY, FLORIDA <br />NOTES TO FINANCIAL STATEMENTS - CONTINUED <br />Year Ended September 30, 1990 <br />6. Long -Term Debt - Continued: <br />Water and Sewer Revenue Refunding Bonds, Series 1989 - Continued <br />(2) Establishment of Various Accounts - Continued <br />c. Reserve Fund account to accumulate an amount equal to the maximum <br />amount of principal and interest coming due in any ensuing fiscal <br />year. An initial deposit was made from bond proceeds with the <br />remainder to be derived from operating revenues. When the maximum <br />amount is obtained, no further deposits are necessary. The amounts in <br />this account are restricted by the bond resolution. A corresponding <br />reserve has been established in the retained earnings for the amounts <br />derived from operating revenues. <br />(3) Bonds Issued - At September 30, 1990, revenue bonds consisted of the <br />following: <br />Description <br />Outstanding <br />at <br />Rates and Original September 30, <br />Dates Maturity Issue 1990 <br />Water and Sewer <br />Revenue Refunding 6.7011-7.25% <br />Bonds, Series 1989 5/1 and 11/1 2019 $6,510,000 $ 6,445,000 <br />Less: Current portion <br />Unamortized bond <br />discount <br />70,000 <br />31,213 <br />Long -Term Portion $ 6,343.787 <br />Water and Sewer Revenue Refunding Bonds, Series 1986 and 1986A <br />(1) Pledge of Revenues - The revenue bonds are collateralized by a pledge of <br />all gross revenues of the system and impact fees. <br />(2) Establishment of Various Accounts <br />a. Revenue Fund account to pay all operating and maintenance costs of the <br />system. <br />b. Sinking Fund account to pay principal and interest coming due during <br />the current fiscal year. The amounts in this account are restricted <br />by the bond resolution. Since the amounts are derived from operating <br />revenues and are restricted, a corresponding reserve has been estab- <br />lished in the retained earnings. <br />28 <br />