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Indian River Memorial - Hospital , Inc. and Subsidiaries
<br /> Notes to Consolidated Financial Statements
<br /> For the Years Ended September 30 , 2002 and 2m1
<br /> The Indian River County Hospital District Hospital Revenue Refunding Bonds, Series 1997
<br /> were issued on March 5, 1997, and are referred to as the Hospital Revenue Refunding Bonds,
<br /> Series 1997. The proceeds of $22, 875,000 were utilized in June 1997 to advance refund a
<br /> portion of the Hospital Revenue Refunding Bonds, Series 1988-X and the Orange County
<br /> Health Facilities Authority Refunding Program Revenue Bonds, Series 1985A (Pooled
<br /> Hospital Loan Program) issued in October 1989 (the "Hospital Revenue Refunding Bonds,
<br /> Series 198940 ). The Hospital Revenue Refunding Bonds, Series 1997 consist of multiple
<br /> serial bonds and a term bond. The serial bonds mature at graduating amounts through 2. 011
<br /> and bear interest at fixed rates ranging between 4.25 % - 6%. The term bond matures in 2018
<br /> and bears interest ata fixed rate- of 6. 1 %. _
<br /> The Series 1985,- 1988, 1989,- 1990., 1996 and 1997 Bonds are collateralized by the net nontax
<br /> revenues of the District and the Hospital. The related trust indentures include restrictions on
<br /> the issuance of new debt and requirements on the maintenance of certain operating ratios.
<br /> Interest incurred on all outstanding bond obligations amounted to approximately- $2,902, 000
<br /> in 2002 and $3 ,937,000 in 2001 , and is reduced by interest earnings on escrowed funds of
<br /> approximately $ 1 ,959,000 in 2002 and $2,003 , 000 in 2001 . Interest earnings on related
<br /> trustee funds amounted to approximately $ 130,000 in 2002 and $319,000 in 2001 and are
<br /> classified-as other-revenue. - -
<br /> Maturities of bond obligations payable, assuming an interest rate of 3 .2 % for variable rate
<br /> debt'; that are the responsibility of the Hospital under .the lease agreement, net of escrowed
<br /> assets and related interest income, are as follows : _
<br /> Year Principal
<br /> 2003 - $ 1 ,235,000
<br /> 2004 I7285,000
<br /> 2005 1,335,000
<br /> 2006 1 , 885;000
<br /> 2007 2,230;000
<br /> Thereafter 50,090,304
<br /> $ 58,060) 304 -I1 . Note Payable
<br /> In May 2001 , the Hospital entered into a note payable agreement with a finance company for
<br /> $ 5 , 000, 000, due June 2006. The note bears interest at 5 .65 % . Aggregate maturities for the
<br /> next five years are approximately as follows : 2003 - $ 8492000 ; 2004 . - $9242000 ; 2005 -
<br /> $ 978 ,000 ; 2006 - $ 1 ,200,000 .
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