village of wellington, florida

NOTE 6. LONG-TERM DEBT (Continued)Changes in Long-Term Liabilities (Continued)Governmental Activities (Continued)$9,995,000 Public Service Tax Revenue Refunding BondsIn May 2005, the Village issued $9,995,000 of Public Service Tax Revenue Refunding Bonds, Series 2005 torefund a portion of the Public Service Tax Revenue Bonds, Series 1999. Interest at a rate of 3.73% ispayable semi-annually on March 1 and September 1. The remaining principal is payable in annualinstallments of $530,000 to $1,165,000 with the final payment due September 1, 2019. At September 30,2009, the outstanding balance was $9,645,000.Future debt service requirements to maturity are:Principal Interest TotalYear Ending September 30:2010 $ 530,000 $ 359,759 $ 889,7592011 870,000 339,990 1,209,9902012 905,000 307,539 1,212,5392013 940,000 273,782 1,213,7822014 970,000 238,720 1,208,7202015 - 2019 5,430,000 622,724 6,052,724Total Public Service Tax RevenueRefunding Bonds, Series 2005 $ 9,645,000 $ 2,142,514 $ 11,787,514Defeased DebtAs a result of the refunding, the refunded portion of the Public Service Tax Revenue Bonds, Series 1999 isconsidered to be defeased and the liability has been removed from the financial statements. At September30, 2009, the amount of defeased debt outstanding, but removed from the financial statements was$6,560,000Debt ComplianceVarious bond indentures contain covenants which specify certain limitations and restrictions for the Villageregarding annual debt service requirements and minimum revenue bond coverage. Management believesthat the Village has complied with all covenants. Additional information can be found in the statisticalsection of this report.$5,605,000 Florida Municipal Loan CouncilIn November 2001, the Village entered into a loan agreement with the Florida Municipal Loan Council for$5,605,000 (Series 2001A). Proceeds from the loan are to be used for capital improvements including roadconstruction, improvements to the storm water system, and acquisition and construction of publicbuildings. Interest, at rates ranging from 3.25% to 5.25% is payable semi-annually on May 1 and November1. The remaining principal is payable in annual installments of $235,000 to $425,000 with the final paymentdue in November 2021. At September 30, 2009, the outstanding balance was $4,200,000.44