LONG-TERM LIABILITIES

The following is a summary of long-term liabilities transactions of the City for the year ended September 30, 2015:

Balance Due

Other Postemployment Benefits 12,027,358 926,701 - 12,954,059 -

Net Pension Liability 9,132,671 10,533,662 - 19,666,333 -

Compensated Absences 1,852,550 1,748,432 (1,862,907) 1,738,075 903,799

Total 34,253,201 14,168,795 (3,524,769) 44,897,227 2,851,187

Business-Type Activities:

Utility Revenue Bonds 16,725,000 - (725,000) 16,000,000 750,000

Sanitation Revenue Note 1,100,000 - (118,000) 982,000 242,000

Other Postemployment Benefits 2,713,852 1,221,345 - 3,935,197 -

Net Pension Liability 2,879,465 1,274,765 - 4,154,230 -

Compensated Absences 455,789 545,979 (550,830) 450,938 234,488

Total 23,874,106 3,042,089 (1,393,830) 25,522,365 1,226,488

Total Long-Term Liabilities $ 58,127,307 $ 17,210,884 $ (4,918,599) $ 70,419,592 $ 4,077,675

* The beginning balance has been restated by the inclusion of the net pension liability, as more fully described in Note 12.

For the governmental activities, claims and judgments, other postemployment benefits, and compensated absences are generally liquidated by the General Fund. The net pension liability will be liquidated through employer contributions by the funds where the current employees charge payroll costs.

Debt Discounts and Premiums Governmental Activities:

The unamortized premium on the 2003B Revenue Bonds amounted to $19,397 at September 30, 2014 and $16,185 at September 30, 2015.

Business-Type Activities:

The unamortized discount amounted to $135,334 at September 30, 2015 and the unamortized premium on the 2012 Utility System Refunding Revenue Bonds amounted to $1,660,334 at September 30, 2015.

CITY OF APOPKA, FLORIDA

The City issued the $960,000 Series 2015 Special Obligation Refunding Revenue Note to Hancock Bank with an interest rate of 1.67%. The proceeds were used to purchase police and fire rescue vehicles.

The City’s Long-Term Debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business-type activities.

Governmental Activities:

Florida Municipal Loan Council Note, due in annual principal installments ranging from $135,000 to $170,000, plus semiannual interest ranging from 2.000% to 5.250% through December 1, 2018. The note is secured by Non-Ad-

Valorem Revenues. This debt is serviced by the General Fund. $ 640,000

Capital Improvement Revenue Note, Series 1999A. Non-Ad-Valorem Revenues are pledged monies budgeted and appropriated pursuant to the loan agreement.

Principal and interest are due in annual installments of $30,750 principal, plus

interest at 4.870% through January 29, 2019. 123,000

Note payable to Bank of America, N.A., collateralized by pledge of recreational impact fees, due in annual principal installments ranging from $465,000 to

$610,000, plus interest at 3.90% through March 1, 2022. This debt is serviced

by the Recreational Impact Fees Fund (Special Revenue Fund). 3,810,000 Note payable to Branch Banking and Trust Company (Special Obligation

Improvement Revenue Note, Series 2013A), payable from the Non-Ad-Valorem Revenues of the City. Interest is due semiannually at 1.8%, and principal installments are due annually ranging from $104,204 to $120,189 through March 1, 2023. The proceeds of this note were used to purchase two new fire

trucks. This note is serviced by the General Fund. 904,068

Note payable to Hancock Bank (Special Obligation Refunding Revenue Note, Series 2015), payable from the Non-Ad-Valorem Revenues of the City.

Interest is due semiannually at 1.67% and principal installments are due annually ranging from $89,000 to $208,000 through March 1, 2022.

This note is serviced by the General Fund. 960,000

CITY OF APOPKA, FLORIDA of the City. Interest is due semiannually at 1.15% and principal installments are due annually ranging from $289,460 to $294,202 through March 1, 2017.

This note is serviced by the General Fund. $ 586,211

Note payable to Old Florida National Bank (Special Obligation Refunding Revenue Note, Series 2013C), payable from the Non-Ad-Valorem Revenues of the City. Interest is due semiannually at 1.2% and principal installments are due annually ranging from $582,550 to $603,775 through December 1, 2018.

This note is serviced by the General Fund. 2,372,481 Note payable to Hancock Bank (Special Obligation Refunding Revenue Note,

Series 2014), payable from the Non-Ad-Valorem Revenues of the City.

Interest is due semiannually at 1.92% and principal installments are due annually ranging from $57,000 to $137,000 through March 1, 2024. from 2.00% to 5.00%, on various maturities. The Series 2012 Bonds are secured by a pledge and are payable solely from the Pledged Revenues consisting of (i) the Net Revenues of the System, (ii) the Sewer System Development Charges, (iii) the Water System Development Charges, (iv) the Reuse System Development Charges, and (v) the monies on deposit in various funds and accounts created pursuant to the Series 2012 Bond Resolution, with the exception of the Rebate Fund. The total principal and interest remaining to be repaid on the bonds is $21,386,700, and total debt service for 2015 was $1,334,200. Pledged revenues of the water, reuse, and wastewater system for 2015 amounted to $8,641,790.

This debt is serviced by the Utility System Fund. $ 16,000,000

Note payable to Hancock Bank (Sanitation System Improvement Revenue Note, Series 2014), payable from the Gross Revenues of the Sanitation Fund of the City. Interest is due semiannually at 1.07% and principal installments are due annually ranging from $118,000 to $249,000 through March 1, 2019.

This note is serviced by the Sanitation Fund. 982,000

16,982,000

Less: Deferred discount (135,334)

Unamortized premium 1,660,334

Total Business-Type Activities Debt $ 18,507,000

CITY OF APOPKA, FLORIDA

NOTES TO THE FINANCIAL STATEMENTS – Continued September 30, 2015

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NOTE 6 – LONG-TERM LIABILITIES – continued

The debt service required payments to maturity on the City's outstanding revenue bonds and notes at September 30, 2015 is as follows:

The City maintains a single-employer, defined-benefit pension plan which covers substantially all of the City’s full-time employees (General Employees’ Retirement Plan), a single-employer, defined-benefit plan which covers all of its full-time certified police officers (Municipal Police Officers’ Retirement Plan) and a single-employer, defined-benefit plan which covers all of its full-time certified firefighters (Municipal Firefighters’ Retirement Plan). Each of the retirement plans is administered by its Board of Trustees, subject, however, and, in any event, to the authority and power of the Apopka City Council. Each plan’s assets may be used only for the payment of plan administrative costs and benefits to the members of that plan, in accordance with the terms of the plan. Benefits and refunds of contributions to the members of the applicable plan are recognized at the date they become due and payable specific to the terms of the plan. None of the aforementioned retirement plans issues a stand-alone financial report, nor are they included in the report of a Public Employee Retirement System, or any other entity.

A. Plan Description and Membership 1. General Employees’ Retirement Plan

The General Employees’ Retirement Plan (“Plan”) was established on October 16, 1976 for all regular, full-time employees not covered by the Municipal Police Officers’ Retirement Plan or the Municipal Firefighters’ Retirement Plan.

All full-time employees who have attained the age of 57 and 5 years of credited service are entitled to annual benefits of 2.75% of the average of the 5 final years of salary, times years of credited service, subject to a maximum of 100% of average final compensation in the form of a life annuity, ceasing upon death. Early retirement is available for employees attaining the age of 47 with 10 years of service. The early retirement benefit is in the form of a life annuity (options available). A delayed retirement may be elected where the employee remains actively employed and benefits continue to accrue after the normal retirement date. In the event of pre-retirement death and the employee is eligible for normal or early retirement, a beneficiary is eligible to receive a benefit as if the member retired on the date of death. If the employee is not eligible for the normal or early retirement at the time of pre-retirement death, the Plan provides for a refund of any employee contributions. Participation in the Deferred Retirement Option Plan (“DROP”) may not exceed 96 months. Each participant in the DROP has an account credited with benefits not received and investment earnings. The DROP balance as of September 30, 2015 is

$842,476.