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Indian River County, Florida
<br />Board of County Commissioners
<br />Notes To Financial Statements
<br />Year Ended September 30, 2017
<br />NOTE 9 - LONG-TERM LIABILITIES - Continued
<br />B. Proprietary Funds Long -Term Debt - Continued
<br />Water and Sewer Revenue Refunding Note, Series 2015 - Continued
<br />Pledge of Revenues — The note is collateralized, for the remaining term of the note, by a pledge of all net
<br />revenues derived from the operation of the system, certain surcharges, and special assessments. Annual
<br />principal and interest payments of $1,094,267 represent approximately eight percent of net revenues of
<br />$13,693,895 of the utility system. The total principal and interest remaining to be paid on the 2015 note
<br />is $5,466,453. Refer to Schedule 14 in the statistical section for further detail.
<br />Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
<br />principal and interest requirements.
<br />Maturity and Interest Rate - Interest payments are made semiannually beginning September 1, 2016
<br />through September 1, 2022. Annual principal payments begin September 1, 2016 and end September 1,
<br />2022. The interest rate is fixed at 1.65%. Note may be paid early without any prepayment penalty.
<br />Water and Sewer Revenue Refunding Bonds, Series 2009
<br />Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009,
<br />$28,270,000 of the Board's outstanding Water and Sewer Revenue Bonds, Series 1993A. The
<br />refunding excluded debt service payments due September 1, 2010 and 2011.
<br />The aggregate difference in debt service between the Series 1993A ($80,434,415) and Series 2009
<br />($78,755,772) is $1,678,643. The net economic gain, which lowered average annual debt service by
<br />$126,000, was $1,368,427 and is amortized over the life of the bonds. The unamortized balance of the
<br />deferred amount on the refunding at September 30, 2017 is $627,196 and is reflected as a deferred
<br />outflow of resources on the Statement of Net Position.
<br />Pledge of Revenues — The revenue bonds are collateralized, for the remaining term of the bonds, by a
<br />pledge of all net revenues derived from the operation of the system, certain surcharges, and special
<br />assessments. The current principal and interest payments of $2,881,000 represent approximately twenty-
<br />one percent of net revenues of $13,693,895 of the utility system. The total principal and interest
<br />remaining to be paid on the bonds is $18,689,250.
<br />Rate Covenant — Net revenues shall be sufficient to pay 100% of reserve and 120% of current year
<br />principal and interest requirements.
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