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Indian River County, Florida <br />Notes To Financial Statements <br />Year Ended September 30, 2019 <br />80 <br /> <br /> <br />NOTE 10 - LONG-TERM LIABILITIES - Continued <br /> <br />B. Primary Government - Continued <br /> <br />Water and Sewer Revenue Refunding Note, Series 2015 - Continued <br /> <br />Pledge of Revenues – The note is collateralized, for the remaining term of the note, by a pledge of all <br />net revenues derived from the operation of the system, certain surcharges, and special assessments. <br />Annual principal and interest payments of $1,094,284 represent approximately eleven percent of net <br />revenues of $9,721,760 of the utility system. The total principal and interest remaining to be paid on <br />the 2015 note is $3,279,270. Refer to Schedule 14 in the statistical section for further detail. <br /> <br />Rate Covenant – Net revenues shall be sufficient to pay 100% of reserve and 120% of current year <br />principal and interest requirements. <br /> <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 /> <br />Water and Sewer Revenue Refunding Bonds, Series 2009 <br /> <br />Purpose - The Series 2009 bonds were issued to refund and redeem on September 11, 2009, <br />$28,270,000 of the County’s outstanding Water and Sewer Revenue Bonds, Series 1993A. <br /> <br />The County elected to redeem 100% of the outstanding bonds in the amount of $11,315,000, at par, on <br />September 1, 2019 in addition to the regularly scheduled debt payment of $2,205,000, which was due <br />and payable on September 1, 2019. <br /> <br />At the time of the early call, $3,151,995 of debt service reserve was released from restricted cash to <br />operating cash. In addition, $869,445 in unamortized bond premium and $452,340 in unamortized net <br />economic gain was charged to bond amortization expense. <br /> <br /> <br />C. Compensated Absences  <br /> <br />For the governmental activities compensated absences liability, the General Fund normally liquidates <br />75 percent, and the Transportation and Emergency Services District funds normally liquidate 6 percent <br />and 16 percent, respectively. The remaining 3 percent is liquidated by other governmental and internal <br />service funds.