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Stonegate Village Metropolitan District
<br />NOTES TO FINANCIAL, STATEMENTS
<br />December 31, 2006
<br />Note 4 -General obligation bonds payable (continued)
<br />Refunding
<br />On November 20, 2006, the District advance refunded and defeased (debt legally satisfied)
<br />$31,335,000 of its General Obligation Refunding Bonds dated November 1, 1996 with an
<br />interest rate ranging from 4.35% to 5.6% by the issuance of $34,575,000 General
<br />Obligation Refunding Bonds dated November 30, 2006 with an interest rate ranging from
<br />4.5% to 5.0%. The defeased bonds are not considered a liability of the District since
<br />sufficient funds ($32,491,596) were deposited with a trustee and invested in U.S.
<br />government securities for the purpose of paying the principal and interest of the defeased
<br />bonds when due.
<br />The District refunded the bonds to provide $6,000,000 of funds for capital improvements
<br />and to reduce the interest rate. The net present value savings as a result of the refunding
<br />was approximately $3,078,000. The District received a premium of $1,940,977 and paid
<br />bond refunding costs of $298,348, both of which are being amortized over the life of the
<br />Series 2006 bonds in the statement of net assets and statement of activities.
<br />Debt service requirements for the next five years and to maturity as of December 31, 2006
<br />follows:
<br />2007 $ 700,000
<br />2008 935,000
<br />2009 1,035,000
<br />2010 1,105,000
<br />2011 1,190,000
<br />2012-2016 7,375,000
<br />2017-2021 10,590,000
<br />2022-2026 11,645,000
<br />Total $ 34,575,000
<br />$ ],599,418
<br />1,563,488
<br />1,521,412
<br />1,485,188
<br />] ,446,512
<br />6,527,538
<br />4,577,250
<br />1,505,500
<br />$ 20,226,306
<br />$ 2,299,418
<br />2,498,488
<br />2,556,412
<br />2,590,188
<br />2,636,512
<br />13,902,538
<br />15,167,250
<br />13,150,500
<br />$ 54,801,306
<br />Note 5 - Net assets
<br />The District has net assets consisting of three components, investment in capital assets, net
<br />of related debt, restricted and unrestricted. Restricted assets include net assets that are
<br />restricted for use either externally imposed by creditors, grantors, contributors, or laws and
<br />regulations of other governments or imposed by law tluougli constitutional provisions or
<br />enabling legislation. The District had $584,044 in net assets restricted for debt service at
<br />December 31, 2006.
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