Page 88 - Microsoft Word - 2011 CAFR.doc

Basic HTML Version

COMPREHENSIVE ANNUAL FINANCIAL REPORT
ESCAMBIA COUNTY, FLORIDA 
NOTES TO COMBINED FINANCIAL STATEMENTS (CONTINUED) 
SEPTEMBER 30, 2011 
60 
together with other available moneys, were used to finance the costs of refunding all of the County’s Tourist 
Development Revenue Bonds, Series 1992, originally issued in the amount of $6,915,000, with a balance of 
$4,650,000 at the date of refunding, and the County’s outstanding promissory note payable to the Florida Local 
Government Finance Commission in the amount of $850,000, and to provide approximately $12,000,000 for 
certain improvements on Santa Rosa Island consisting of beach nourishment and certain capital improvements to 
the Civic Center.  The principal and interest on the 2002 Bonds are payable solely from and collateralized by a lien 
upon and a pledge of the Tourist Development Tax levied and collected by the County. 
Capital Leases  
The County was obligated under lease‐purchase agreements for the purchase of new chiller equipment, two trucks 
and four all terrain vehicles (ATVs).  These leases qualified as capital leases for accounting purposes and were 
recorded at the present value of the future minimum lease payments at the inception of the lease.  As of 
September 30, 2011, the outstanding balance due on the leases was $0.00.   
The Santa Rosa Island Authority has entered into several capital leases for office equipment with terms of 39‐48 
months.  The acquired assets have been recorded at a book value of $29,931.  Amortization on equipment under 
capital lease is included in depreciation expense. 
Maturities of the obligations under capital lease are as follows: 
Board of
Santa Rosa
County 
Island
Commissioners
Authority
Balance 10/01/2010
$507,504
$75,527
Additions
0
0
Principal payments
(507,504)
(17,816)
Balance 09/30/2011
$0
$57,711
Future lease payments
2012
$0
$42,341
2013
0
33,044
2014
0
459
Total minimum lease payments
0
75,844
Less amount representing interest
0
(18,133)
Net minimum lease payments
$0
$57,711
Refunding of Outstanding Debt
 in prior years permitted the Board to defease certain special obligation and other 
revenue bonds by placing the proceeds of new bonds in irrevocable trusts to provide for all future debt service 
payments on the old bonds.  Accordingly, the trust account asset and liabilities are not included in the County’s 
financial statements.  On September 30, 2011, two bond issues are outstanding with an aggregate principal 
amount of $20,505,000. 
Long‐Term Debt – Arbitrage Liability
 represents the excess of interest earned from the investment of certain debt 
proceeds and pledged revenues over the yield rate of the applicable debt.   Pursuant to Section 148 (f) of the U.S. 
Internal Revenue Code, the County must rebate any excess to the United States Government.  Arbitrage rebate, if 
any, is due and payable on each five‐year anniversary of the respective bond issue.  For the fiscal year ended 
September 30, 2011, there is no arbitrage rebate liability outstanding.