ACFR - FY2020 5-28-21 FINAL - Flipbook - Page 104
NOTES TO FINANCIAL STATEMENTS
CITY OF EUSTIS, FLORIDA
(Continued)
Note 10 - Long-Term Debt (Continued)
Business-type Activity Liabilities
The following is a summary of all long-term liabilities of the proprietary funds at September
30, 2020:
Florida Department of Environmental Protection State Revolving Loan Agreement –
(Direct Borrowing)
The 2000 loan agreement of $5,852,495 and 2012 loan agreement of $5,264,258 are for
the wastewater treatment plant and secured by gross revenues derived yearly from
operation of the water and sewer system after payment of the operation and maintenance
expense and the satisfaction of all senior obligations. Net available revenue of $3,230,233
less debt payments of $720,865, provided a debt coverage of 4.91.
The loan #50710P, 2000 agreement’s first payment was May 15, 2001, with the final
payment due on November 15, 2020. Principal and interest are $387,080, with semiannual payments of $193,540.
Another 2012 loan #350302 agreement’s first payment was March 15, 2013, with the final
payment due September 15, 2032. Principal and interest are $315,461, with semi-annual
payments of $157,730.
The loan #350300, 2012 agreement’s first payment was March 15, 2013, with the final
payment due on September 15, 2032. Principal and interest are $18,324, with semiannual payments of $9,162.
Provisions of the loan mandates that rates of the water and sewer system will be sufficient
to provide a cover of 1.15 time the sum of the semiannual payments, the utility will not
provide any free service, all connections are mandatory and consistent with applicable
laws, the government shall not allow any competing services within the city limits and the
government must use its best efforts to collect all rates, fees and other charges.
The City’s direct borrowing with the state Revolving Fund (SRF) contain provisions that in
the event of default, notification of such default may be made to the Florida Auditor General
and Chief Financial Officer, and the SRF may intercept the unpaid amounts from
unobligated funds due to the City under revenue or tax sharing programs. The SRF may
impose a penalty interest rate not to exceed 18% annually on the amount due. Additionally,
the SRF may accelerate the repayment schedule or increase the financing rate on unpaid
principal to as much as 1.667 times the original financing rate
Water and Sewer Revenue Bonds, Series 2016
On November 3, 2016, the City issued $7,680,000 in Water and Sewer Revenue Bonds to
finance the costs of certain improvements to the City combined water and sewer systems.
Principal and interest for fiscal year 2020, was $552,106 which is equal to 11.54% of the
current year pledged revenue. The remaining outstanding principal and interest will be
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