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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2018 <br />NOTE 10 - LONG-TERM LIABILITIES - Continued <br />B. Primary Government - Continued <br />Limited General Obligation Refunding Note, Series 2015 <br />Purpose - On April 7, 2015, the County voted to redeem $19,075,000 of outstanding 2006 Limited <br />General Obligation Bonds with a 7 year note from Regions Capital Advantage, Inc. The refunding <br />ultimately saved the County $1.2 million over the 7 year remaining life of the bonds. <br />The aggregate difference in debt service between the 2015 note ($28,959,008) and the 2006 bonds <br />($30,315,331) was $1,356,323. These amounts include the 7/1/2015 and 7/1/2016 principal and interest <br />payments which were excluded in the refunding. The net economic gain was $636,694 and is <br />amortized over the life (72 months) of the new debt. The unamortized balance of $375,826 is reflected <br />as a deferred outflow of resources on the Statement of Net Position. This refinancing lowered the <br />annual debt service by $150,000. <br />Pledge of Revenues — The principal and interest on the bonds are payable from the sole source of ad <br />valorem taxes not exceeding V2 mil and having a maturity not exceeding fifteen years, which are levied <br />by the County upon the taxable real and personal property of the County. The total tax revenue <br />received was $4,636,034 of which 100% is pledged for payment of this note and the 2006 bond. Total <br />principal and interest paid on this note was $4,417,840 and represents 95% of total pledged revenue. <br />Maturity and Interest Rate - Interest payments are made semiannually beginning July 1, 2015 through <br />July 1, 2021. Annual principal payments begin July 1, 2015 and end July 1, 2021. The interest rate is <br />fixed at 1.66%. The note may be paid early without a prepayment penalty. <br />78 <br />