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HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2016

NOTE 8 - LONG-TERM OBLIGATIONS - (Continued)

The issuance proceeds of $18,725,000 were used to purchase securities which were placed in an
irrevocable trust to provide resources for all future debt service payments on the refunded debt. This
refunded debt in considered defeased (in substance) and accordingly has been removed from the
statement of net position. At June 30, 2016, $18,440,000 of this debt was outstanding.

Energy Conservation Bonds

The energy conservation bonds were issued during fiscal year 2010. The proceeds were used to
finance improvements throughout the District for the purpose of reducing future energy costs. These
improvements are not capital in nature and were not added to the District’s capital assets; therefore, the
bonds are not included in the District’s net investment in capital assets. The bonds bear an interest rate
ranging from 2.00% to 4.00% and mature on December 1, 2021. Debt payments are made from the
general fund from the savings on energy costs resulting from the improvements.

Qualified School Construction Bonds

The qualified school construction bonds were issued during fiscal year 2010. The proceeds were used
to finance various energy improvements throughout the District. The bonds bear an interest rate of
1.69%. Payments on the bonds, which mature on September 15, 2024, are made from the general
fund.

B. Principal and interest requirements to retire the general obligation bonds outstanding at June 30, 2016,
are as follows:

Fiscal Year Energy Conservation Bonds Qualified School Construction Bonds

Ending June 30, Principal Interest Total Principal Interest Total

2017 $ 200,000 $ 44,525 $ 244,525 $ 150,000 $ 22,984 $ 172,984
2018 200,000 150,000
2019 215,000 38,325 238,325 155,000 20,449 170,449
2020 220,000 155,000
2021 230,000 31,363 246,363 160,000 17,872 172,872
2022 - 2025 240,000 665,000
23,200 243,200 15,252 170,252

14,200 244,200 12,591 172,591

4,800 244,800 22,773 687,773

Total $ 1,305,000 $ 156,413 $ 1,461,413 $ 1,435,000 $ 111,921 $ 1,546,921

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