village of wellington, florida

NOTE 6. LONG-TERM DEBT (Continued)Pledged Revenue (Continued)Governmental Activities (Continued)the bonds are expected to require less than 14% of annual public service tax revenues. The total principaland interest remaining to be paid on the Public Service Tax Revenue Bonds, Series 1999 is $319,487 andPublic Service Tax Revenue Refunding Bonds, Series 2005, is $11,787,514. Total principal and interest paidfor the current year and total public service tax revenues were $1,211,167 and $10,229,333, respectively.Debt Service Reserve Surety BondsThe Village’s debt service reserve surety bonds for its Public Service Tax Revenue Bonds Series 1999 andSeries 2005 were purchased from Ambac Assurance Corporation, a subsidiary of Ambac Financial Group,Inc. (AMBAC). In December 2009, the New York Stock Exchange (NYSE) notified AMBAC that it hadfallen below the NYSE’s continued listing standard relating to the price of its common stock. AmbacAssurance Corporation, a guarantor of public finance and structured finance obligations, has a Caa2 ratingfrom Moody’s Investors Service, Inc. and a CC rating from Standard & Poor’s Rating Services. Villagemanagement, in consultation with legal counsel, has determined that the Village is not required to obtain areplacement insurance guarantor or provide additional security for the payment of the obligations insuredby AMBAC.Business-type ActivitiesBalance Balance DueSeptember 30, September 30, Within2008 Additions Reductions 2009 One YearUtility System Revenue Refunding Bonds $ 13,705,000 $ - $ (2,280,000) $ 11,425,000 $ 2,335,000Plus unamortized bond premium 138,962 - (27,792) 111,170 -Less unamortized refunding loss (813,006) - 162,601 (650,405) -Total Bonds Payable 13,030,956 - (2,145,191) 10,885,765 2,335,000Compensated absences payable 181,208 238,671 (207,880) 211,999 95,400Total $ 13,212,164 $ 238,671 $ (2,353,071) $ 11,097,764 $ 2,430,400$22,355,000 Utility System Revenue Refunding and Improvement BondsIn August 2003, the Village issued $22,355,000 of Utility System Revenue Refunding and ImprovementBonds, Series 2003. Interest, at rates ranging from 2.00% to 4.00%, is payable semi-annually on April 1 andOctober 1. The remaining principal is payable in annual installments of $1,500,000 to $2,635,000, with thefinal payment due October 1, 2013. The bonds do not constitute a general obligation of the Village, or theState of Florida, or any political subdivision, but are payable solely from net revenues derived from theoperation of the water and sewer utility system, certain impact fees, and money and fees held in certainfunds. The bonds were issued to refund all of the Utility System Revenue Refunding Bonds, Series 1993,and finance certain capital expenditures related to the water and sewer system or for any other lawfulpurpose. At September 30, 2009, the outstanding balance was $11,425,000.Annual debt service requirements to maturity for the Utility System Revenue Refunding Bonds are asfollows:46