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Indian River County, Florida Notes To Financial Statements Year Ended September 30, 2019 79 NOTE 10 - LONG-TERM LIABILITIES - Continued B. Primary Government - Continued Business-type Activities Annual Debt Service Payments – Business-type Activities The annual debt service payments for notes from direct borrowings and direct placements outstanding at September 30, 2019, are as follows: Fiscal Year Water and Sewer Ending Revenue Refunding September 30 Note Series 2015 Principal Interest 2020 $ 1,042,000 $ 52,371 2021 1,058,000 35,178 2022 1,074,000 17,721 Total 3,174,000 105,270 Less: Current portion 1,042,000 Total - long-term $ 2,132,000 Water and Sewer Revenue Refunding Note, Series 2015 Purpose - On August 18, 2015, the County voted to early call all of the outstanding 2005 Water and Sewer Revenue Refunding Bonds. The County paid down 50% of the debt ($7,100,000) with cash and refinanced the remaining 50% ($7,105,000) with a 7 year note. The total amount borrowed included the cost of issuance and accrued interest totaling $66,000, for a grand total of $7,171,000. The aggregate difference in debt service between the Series 2005 bonds ($18,866,875) and the Series 2015 note ($7,653,356), cash contribution and September 1, 2016 principal and interest payment ($9,162,642) was $2,050,877. The net economic gain was $583,991; which included the refinancing, accrued interest, and cash contribution. This lowered the annual debt service by $1.2 million. The net economic gain is amortized over the 7 year life of the note. The unamortized balance of the deferred amount on the refunding at September 30, 2019 is $243,329 and is reflected as a deferred outflow of resources on the Statement of Net Position.