Revenue Bonds (continued) Governmental activities:
Cocoa Redevelopment Agency Revenue Bonds, Series 2002, original issuance amount of $3,476,500, due $12,229 to $285,500 annually through 2017; interest at
3.73% $ 297,729
Capital Improvement Revenue Bond, Series 2007, original issuance amount of
$11,675,000, due $275,000 to $685,000 annually through 2037; interest at 3.79%
to 4.83% (less bond discount of $182,673) 9,642,327
Total governmental activities $ 9,940,056
Business-type activities:
Water and Sewer System Refunding Revenue Bonds, Series 1999, original issuance amount of $24,430,000, due $1,170,000 to $1,300,000 annually through 2019;
interest at 3.8% to 5.25% (less bond discount of $25,756) $ 3,674,244 Water and Sewer System Refunding Revenue Bonds, Series 2003, original issuance
amount of $23,985,000, due $1,250,000 to $1,790,000 annually through 2023;
interest at 2.0% to 5.5% (plus bond premium of $392,907) 12,392,907 Water and Sewer System Refunding Revenue Bonds, Series 2009 original issuance
amounts of $8,795,000 (Series 2009A) and $13,820,000 (Series 2009B), due
$630,000 to $1,995,000 annually in 2019 through 2039; interest at 3.75% to 5.00%
(less bond discount of $432,220) 22,182,780
Water and Sewer System Revenue Bonds, Series 2010 (Federally Taxable-Build America Bonds-Direct Subsidy), original issuance amount of $24,770,000 due
$1,110,000 to $3,195,000 annually in 2027 through 2040; interest at 7.375% to
7.625% (less bond discount of $293,409) 24,476,591
Total business-type activities $ 62,726,522
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
Revenue Bonds (continued)
Annual debt service requirements to maturity for revenue bonds outstanding are as follows:
Year ending
(*) Certain payments due October 1, 2015 (fiscal year 2015) have already been made as of September 30, 2015.
Water and Sewer System Revenue Bonds, Series 2010 (Federally Taxable-Build America Bonds-Direct Subsidy) are subject to redemption prior to their stated dates of maturity, at the option of the City, in whole or in part, on October 1, 2020, or any date thereafter, in such order as may be determined by the City and by lot within a maturity, at the redemption price of the principal amount to be redeemed, plus accrued interest to the redemption date. The Series 2010 Bonds maturing on October 1, 2030 are subject to mandatory redemption prior to maturity, by lot, in such manner as the paying agent may deem appropriate, at 100% of the principal amount to be redeemed plus accrued interest to the date of redemption, without premium, on October 1, 2027 and on each October 1 thereafter. The Series 2010 Bonds maturing on October 1, 2035 are subject to mandatory redemption prior to maturity, by lot, in such manner as the paying agent may deem appropriate, at 100% of the principal amount to be redeemed plus accrued interest to the date of redemption, without premium, on October 1, 2031 and on each October 1 thereafter. The Series 2010 Bonds maturing on October 1, 2040 are subject to mandatory redemption prior to maturity, by lot, in such manner as the paying agent may deem appropriate, at 100% of the principal amount to be redeemed plus accrued interest to the date of redemption, without premium, on October 1, 2036 and on each October 1 thereafter. The Series 2010 Bonds are subject to extraordinary optional
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
Revenue Bonds (continued)
redemption prior to their maturity date at the option of the City, in whole or in part, on any date prior to October 1, 2020 in such maturities as the City shall determine, only upon the occurrence of an extraordinary event (as defined in the bond agreement), at a redemption price equal to the greater of: (1) 100% of the principal amount of the Series 2010 Bonds to be redeemed; or (2) the sum of the present value of the remaining scheduled payments of principal and interest to the maturity date of the Series 2010 Bonds to be redeemed, not including any portion of those payments of interest accrued and unpaid as of the date on which the Series 2010 Bonds are to be redeemed, discounted to the date on which the Series 2010 Bonds are to be redeemed on a semi-annual basis, assuming a 360-day year consisting of twelve 30-day months, at the treasury rate (as defined in the bond agreement), plus 100 basis points; plus, in each case, accrued interest on the Series 2010 Bonds to be redeemed to the redemption date.
The Water and Sewer System Revenue Bonds, Series 2009A are subject to redemption prior to their respective stated dates of maturity at the option of the City in whole or in part on or after October 1, 2019, at 100% of the principal amount of the bond to be redeemed, together with accrued interest to the date set for redemption. Bonds maturing October 31, 2034 are subject to mandatory redemption prior to maturity, at the option of the paying agent, at 100% of the principal amount of the bond to be redeemed, on October 1, 2030 and on each October 1 thereafter, through and including October 1, 2034. In addition, bonds maturing October 31, 2039 are subject to mandatory redemption prior to maturity, at the option of the paying agent, at 100% of the principal amount of the bond to be redeemed, on October 1, 2035 and on each October 1 thereafter, through and including October 1, 2039.
The Water and Sewer Revenue Refunding Bonds, Series 2009B maturing in the year 2019 are not subject to optional maturity prior to its stated date of maturity. Bonds maturing on or after October 1, 2020, are subject to redemption prior to their respective stated dates of maturity at the option of the City in whole or in part on or after October 1, 2019, at 100% of the principal amount of the bond to be redeemed, together with accrued interest to the date set for redemption.
The Water and Sewer Revenue Refunding Bonds, Series 2009C are not subject to optional maturity prior to their stated date of maturity. The Water and Sewer System Refunding Revenue Bonds, Series 2003, are not subject to redemption prior to maturity at the option of the City.
However, bonds maturing on October 1, 2019 are subject to mandatory redemption prior to maturity, at the option of the paying agent, at 100% of the principal amount of the bond to be redeemed, on October 1, 2018. In addition, bonds maturing on October 1, 2023 are subject to mandatory redemption prior to maturity, at the option of the paying agent, at 100% of the principal amount of the bond to be redeemed, on October 1, 2018 and on each October 1 thereafter, through and including October 1, 2023.
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
Revenue Bonds (continued)
The Water and Sewer System Refunding Revenue Bonds, Series 1999, maturing in the years 2006 to 2018, both inclusive, are not subject to redemption prior to their stated dates of maturity. The bonds maturing on October 1, 2022 and October 1, 2026 are redeemable prior to their stated dates, at the option of the City, on October 1, 2009, or any date thereafter, in whole or in part, in such order as may be determined by the City and by lot within a maturity, at 100% of the principal amount of the bond to be redeemed, together with accrued interest to the date set for redemption.
Notes Payable
On November 26, 2014, the City entered into a Capital Improvement Revenue Note, Series 2014 in the principal amount of $2,010,000 for the purpose of financing the City’s purchase of three fire vehicles, consisting of one ladder truck and two rescue pumper trucks. The Note bears interest at a fixed rate of 2.20%.
On November 14, 2012, the City entered into a Transportation Improvement Revenue Note, Series 2012 in the principal amount of $1,250,000 for the purpose of financing the City’s payment obligations under a funding agreement with the Florida Department of Transportation. The Note bears interest at a fixed rate of 1.90%.
On December 7, 2010, the City entered into a Capital Improvement Refunding Note, Series 2010 in the principal amount of $3,200,000 to refund the remaining amount of the Capital Improvement Revenue Bonds, Series 1998 outstanding and to finance certain costs of capital expenditures for the City’s public purposes. The Note bears interest at a fixed rate of 2.50%.
The City entered into Capital Improvement Revenue Notes under a line of credit agreement in the principal amount of $6,000,000 to finance certain costs of capital expenditures for the City’s public purposes. Each draw on the line is treated as a separate borrowing, evidenced by a separate Note Payable. In previous years, the City made five draws on the line in the amounts of
$1,800,000, $2,357,070, $743,000, $700,000 and $399,930. Each of the Notes Payable bear interest at a variable rate calculated as the 30-day London Interbank Offered Rate (LIBOR) times 67% plus 65 basis points (calculated as .78% at September 30, 2015).
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
Notes Payable (continued)
Note payables outstanding at year end are as follows:
Governmental activities:
Capital Improvement Refunding Note, Series 2010, payments range from
$261,000 to $303,000 annually through 2022 $ 1,972,000 Transportation Improvement Revenue Note, Series 2012, payments range
from $120,000 to $135,000 annually through 2022 1,030,000 Capital Improvement Revenue Note, Series 2014, payments range from
$190,000 to 225,000 annually through 2024 1,855,000
Total governmental activities $ 4,857,000
Business-type activities:
Capital Improvement Revenue Note, Series 2002, remaining payment of
$27,878 in 2016 $ 27,878
Capital Improvement Revenue Note, Series 2004, remaining payment of
$54,760 in 2016 54,760
Capital Improvement Revenue Note, Series 2005, payments range from
$65,000 to $70,000 annually through 2018 200,000 Capital Improvement Revenue Note, Series 2006, payments range from
$40,000 to $44,930 annually through 2017 84,930
Total business-type activities $ 367,568
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
Notes Payable (continued)
Annual debt service requirements to maturity for the notes are as follows:
September 30, Principal Interest Principal Interest (*)
2016 (**) $ 310,000 $ 111,727 $ - $ 1,722 2017 581,000 98,771 187,638 2,128 2018 586,000 85,518 114,930 952 2019 607,000 72,017 65,000 253 2020 616,000 58,172 - -2021-2025 2,157,000 93,483 -
-Totals $ 4,857,000 $ 519,688 $ 367,568 $ 5,055 Government Activities Business-type Activities
(*) The interest balances are estimated due to variable rates.
(**) Certain payments due October 1, 2015 (fiscal year 2015) have already been made as of September 30, 2015.
The note agreements provide for certain debt covenant requirements, including debt service and reserve requirements. The City is currently in compliance with each of these covenants.
State Revolving Loans
On March 20, 2001, the City was awarded financial assistance from the Florida Department of Environmental Protection in the form of a Drinking Water State Revolving Fund Loan (DW0517010), for the purpose of financing construction of the Banana River 36-inch Water Main project. The amount of the loan payable at September 30, 2015, is $2,100,790. The loan bears interest at fixed rates ranging from 3.05% to 3.27% per annum, with principal and interest payments due in January and July of each fiscal year until the loan is paid in full in fiscal year 2022.
During 2003, the City was awarded an additional construction loan under the Florida Department of Environmental Protection’s Drinking Water State Revolving Fund Loan (DW0517020), for the purpose of financing Phase I of a 54-inch water main from State Road 524 to the St. John’s River.
The amount of the loan payable at September 30, 2015, is $2,192,070. The loan bears interest at fixed rates ranging from 2.67% to 2.93% per annum, with principal and interest payments due in February and August of each fiscal year until the loan is paid in full in fiscal year 2024.
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
State Revolving Loans (continued)
During 2003, the City was awarded an additional construction loan under the Florida Department of Environmental Protection’s Clean Water State Revolving Fund (WWG12081202P), for the purpose of preconstruction activities, which consist of the planning, administrative, and engineering work necessary for the City to qualify for Clean Water State Revolving Fund financing, for construction of wastewater transmission, collection, reuse, and treatment facilities. The amount of the loan payable at September 30, 2015, is $1,768,070. The loan bears interest at fixed rates ranging from 1.89% to 2.04% per annum, with principal and interest payments due in June and December of each year until the loan is paid in full in fiscal year 2025.
During 2004, the City was awarded an additional construction loan under the Florida Department of Environmental Protection’s State Revolving Fund (DW0517030), for the purpose of financing the City’s 54-inch Water Transmission Main, Phase 2, construction project. The amount of the loan payable at September 30, 2015, is $5,577,380. The loan bears interest at fixed rates ranging from 2.58% to 2.96% per annum, with principal and interest payments due in February and August of each year until the loan is repaid in full in fiscal year 2025.
During 2009, the City was awarded an additional construction loan under the Florida Department of Environmental Protection Clean Water State Revolving Fund (WW812030), for the waste water portion related to the Widening of US 1 from Park to Rosa L. Jones and from Rosa L. Jones to Pine, including a force main and reclaimed water main. The amount of the loan payable at September 30, 2015 is $4,962,125. The loan bears interest at 2.92% per annum, with 40 principal and interest payments due in April and October of each fiscal year until the loan is repaid in full in fiscal year 2031.
During 2009, the City was awarded an additional construction loan under the Florida Department of Environmental Protection Drinking Water State Revolving Fund (DW0517040), for the water main portion related to the Widening of US 1 from Park to Rosa L. Jones and from Rosa L. Jones to Pine.
The maximum amount of the loan is $3,200,000. The amount of the loan payable at September 30, 2015 is $1,763,132. The loan bears interest at 2.77% per annum, with 40 principal and interest payments due in June and December of each fiscal year until the loan is repaid in full in fiscal year 2031.
During 2009, the City was awarded an additional construction loan under the Florida Department of Environmental Protection Drinking Water State Revolving Fund (DW0517050), for South Mainland 42-inch Water Main Project. The maximum amount of the loan is $6,400,000. The amount of the loan payable at September 30, 2015 is $5,227,247. The loan bears interest at fixed rates ranging from 2.77% to 2.84% per annum, with 40 principal and interest payments due in April and October of each fiscal year until the loan is repaid in full in fiscal year 2030.
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
State Revolving Loans (continued)
During 2009, the City was awarded an additional construction loan under the Florida Department of Environmental Protection Drinking Water State Revolving Fund (DW0517060), for the South Atlantic Avenue Water Main Replacement Phase I project. The amount of the loan payable at September 30, 2015 is $100,767. The loan bears interest at fixed rates ranging from 2.57% to 2.82% per annum, with 40 principal and interest payments due in June and December of each fiscal year until the loan is repaid in full in fiscal year 2031.
The balances outstanding under State Revolving Loan Funds as of September 30, 2015 are as follows:
Year ending September 30, Principal Interest
2016 $ 1,856,192 $ 653,288
2017 1,908,690 600,789
2018 1,962,693 546,778
2019 2,018,245 491,235
2020 2,075,387 434,124
2021-2025 9,186,105 1,333,334
2026-2030 4,483,011 402,707
2031-2035 201,258 2,936
Totals $ 23,691,581 $ 4,465,191
Business-type Activities
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
Changes in Long-term Liabilities
Long-term liability activity for the year ended September 30, 2015, is as follows:
Beginning
City of Cocoa, Florida Notes to Financial Statements
NOTE III: DETAILED NOTES ON ALL FUNDS (Continued) G. Long-term debt (continued)
For the governmental activities, capital leases and compensated absences are generally liquidated by the General Fund.
Principal and interest paid in the current fiscal year for the Cocoa Redevelopment Agency Revenue Bonds, Series 2002, was $290,031 and pledged gross revenue was $1,030,063. As of September 30, 2015, principal and interest to maturity in 2017 to be paid from pledged future revenues totaled $313,207. Principal and interest paid in the current fiscal year for the Capital Improvement Revenue Bond, Series 2007 was $720,463 and pledged gross revenue was
$3,570,471. As of September 30, 2015, principal and interest to maturity in 2038 to be paid from pledged future revenues totaled $15,801,344.
Principal and interest paid in the current fiscal year for the Water and Sewer System Revenue Bonds, Capital Improvement Revenue Notes, and the State Revolving Loan Funds was $8,662,786 and pledged net revenue and impact fees was $26,054,022. As of September 30, 2015, principal and interest to maturity in 2040 to be paid from pledged future revenues totaled $144,998,983.
H. Operating leases
The City leases various equipment under operating leases. The following schedule represents minimum future rental expense related to the leases.
Year Ending September 30,
2016 $ 50,425
2017 53,904
2018 53,904
2019 49,655
2020 12,195
2021 4,311
Total minimum future rental expense $ 224,394
City of Cocoa, Florida Notes to Financial Statements
NOTE IV: OTHER INFORMATION