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Indian River County, Florida
<br /> Management ' s Discussion and Analysis
<br /> For the Year Ended September 30 , 2002
<br /> DEBT MANAGEMENT
<br /> Governmen tal Activities Debt
<br /> On November 29, 2001 , the County issued $ 11 , 000,000 of General Obligation Bonds , Series 2001 . This was the
<br /> second series of bonds authorized by voters to acquire environmentally sensitive lands . The first series in the
<br /> amount of $ 15 , 000 , 000 was issued in 1995 . The general obligation bonds are backed by ad valorem taxes .
<br /> During the year, principal payments of $ 1 ,405 ,000 were made leaving a balance of $ 19 , 8 10 ,000 . On August 15 ,
<br /> 2001 , the County issued $ 16, 810,000 of revenue backed bonds to acquire the Dodger 's spring training facilities
<br /> and make improvements to those facilities . Principal payments of $360,000 were made during the year and as of
<br /> September 30, $ 16,450,000 is still outstanding. Since all County bond issues are insured byAAA rated insurance
<br /> agencies, the bonds are rated AAA, which is the highest rating given by the rating agencies .
<br /> Business-type Activities Debt
<br /> The County issued bonds in 1993 to legally defease the 1985 and 1991 Recreational Revenue Bonds, which were
<br /> issued to provide funding for the County golf course , Sandridge . Principal payments of $ 360,000 were made
<br /> during the year and as of September 30, $7 , 110, 000 is still outstanding . In 1993 and in 1996, the County issued
<br /> bonds to refund outstanding water and sewer bonds and to provide funds for expansion of the water and sewer
<br /> systems . Principal payments of $ 1 ,690 ,000 were made during the year and as of September 30 , $74 , 525 ,000 is
<br /> still outstanding . All three bond issues are insured byAAA rated insurance agencies and, therefore, are rated AAA.
<br /> FUTURE FINANCIAL CONDITION
<br /> Governmental Activities
<br /> For the 2002/2003 fiscal year, an increase in taxable values of 12 .3 % has provided the opportunity to implement
<br /> anew County Recreation Department without a significant increase in tax rates . The overall millage rate of 6. 5865
<br /> is 3 % less than the millage rate for the 2001 /2002 fiscal year. Additional debt service requirements for the general
<br /> obligation bonds necessitated an increase of 46% in the ad valorem tax rate to 0.2839 mills . On February 5 , 2003 ,
<br /> the County purchased the Lost Tree Islands for $ 15 , 105 ,000 . The County used $ 12 ,375 , 000 of General Obliga-
<br /> tion Bonds, Series 2001 , funds and an interf ind loan of $2 ,730 ,000 .
<br /> Business-type Activities
<br /> For the 2002/2003 fiscal year, an increase in golf course fees was adopted to ensure financial stability and meet
<br /> cash flow needs . Other business-type activities fees were kept at the same rates . Revenues generated by the solid
<br /> waste system, utilities system and othe business-type activities will be sufficient to cover their operating costs and
<br /> capital needs.
<br /> ADDITIONAL FINANCIAL INFORMATION
<br /> This report was prepared by the Finance Department under the supervision of the Clerk of the Circuit Court .
<br /> Questions concerning this report or requests for additional information should be addressed to the Finance De-
<br /> partment, 1840 25th Street, Vero Beach, Fl , 32960, or by calling 772 - 567- 8000 , extension 1201 . Separate
<br /> financial statements for the Indian River County Housing Authority are available in the administrative office located
<br /> at 1028 20th Place , Vero Beach, FL , 32960 .
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