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Board of Commissioners
<br /> Page 2 of 2
<br /> July 8, 2015
<br /> Table 1
<br /> Estimated Net Interest Savin s 50% Refunding
<br /> Investment
<br /> Est. Principal Est. Interest Interest Net Savings/
<br /> Year Refunded Savings Earnings Loss Loss
<br /> 2016 $875,000 $326,475 ($35,525) $290,950
<br /> 2017 $920,000 $282,725 ($31,150) $251,575
<br /> 2018 $965,000 $236,725 ($26,550) $210,175
<br /> 2019 $1,015,000 $188,475 ($21,725) $166,750
<br /> 2020 $1,065,000 $137,850 ($16,650) $121,200
<br /> 2021 $1,110,000 $93,375 ($11,325) $82,050
<br /> 2022 $1,155,000 $46,200 ($5,775) $40,425
<br /> Totals $7,105,000 $1,311,825 ($148,700) $1,163,125
<br /> The Utility has one other bond issue—the Water & Sewer Revenue Refunding Bonds, Series 2009—
<br /> with a principal balance of $21,340,000 currently outstanding. These bonds require annual debt
<br /> service payments of about $2.9 million and reach final maturity in 2024. Therefore, this refunding will
<br /> reduce the total debt outstanding from $35.5 million to $28.4 million. Total debt service will drop from
<br /> $5.3 million to $4.1 million per year.
<br /> Staff Recommendation
<br /> Staff recommends that the Board of Commissioners authorize staff to begin the process of calling
<br /> $7,105,000 (50%) out of the $14,205,000 remaining of the Water & Sewer Revenue Refunding Bonds,
<br /> Series 2005 on or after September 1, 2015.
<br /> APPROVED AGENDA ITEM: Indian River County Approved Date
<br /> Administrator 9
<br /> BY:
<br /> Jose . B ird County Attorney
<br /> County Administrator Budget 7 1rj
<br /> OR: July 14, 2015 Department
<br /> Risk Management
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