Page 77 - Hudson City Schools CAFR 2017

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2017

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, 2017, $18,030,000 of this debt was outstanding.

Energy Conservation Bonds

The energy conservation bonds were issued during fiscal year 2010 in the amount of $2,440,000. 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 in the amount of
$2,274,257. 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, 2017,
are as follows:

Fiscal Year Energy Conservation Bonds Qualified School Construction Bonds
Ending June 30, Principal Interest Total Principal Interest Total
2018 $ 200,000 $ 38,325 $ 238,325 $ 150,000 $ 20,449 $ 170,449
2019 215,000 31,363 246,363 155,000 17,872 172,872
2020 220,000 23,200 243,200 155,000 15,252 170,252
2021 230,000 14,200 244,200 160,000 12,591 172,591
2022 240,000 4,800 244,800 160,000 9,887 169,887
2023 - 2025 - - - 505,000 12,886 517,886
Total $ 1,105,000 $ 111,888 $ 1,216,888 $ 1,285,000 $ 88,937 $ 1,373,937

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