Page 78 - 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)

C. Principal and interest requirements to retire the certificates of participation outstanding at June 30,
2017, are as follows:

Fiscal Year Certificates of Participation
Ending June 30, Principal Interest Total

2018 $ 640,000 $ 583,214 $ 1,223,214
2019 665,000 568,814 1,233,814
2020 690,000 552,189 1,242,189
2021 715,000 535,801 1,250,801
2022 745,000 517,033 1,262,033
2023 - 2027 4,340,000 2,152,665 6,492,665
2028 - 2032 5,650,000 1,227,206 6,877,206
2033 - 2034 2,720,000 164,600 2,884,600
Total $ 16,165,000 $ 6,301,522 $ 22,466,522

D. Legal Debt Margin

The Ohio Revised Code provides that voted net general obligation debt of the District shall never
exceed 9% of the total assessed valuation of the District. The code further provides that unvoted
indebtedness shall not exceed 1/10 of 1% of the property valuation of the District. The code
additionally states that unvoted indebtedness related to energy conservation debt shall not exceed 9/10
of 1% of the property valuation of the District. The assessed valuation used in determining the
District’s legal debt margin has been modified by House Bill 530 which became effective March 30,
2006. In accordance with House Bill 530, the assessed valuation used in the District’s legal debt
margin calculation excluded tangible personal property used in business, telephone or telegraph
property, interexchange telecommunications company property and personal property owned or leased
by a railroad company and used in railroad operations. The effects of these debt limitations at June 30,
2017, are a voted debt margin of $67,594,816 and an unvoted debt margin of $957,220.

NOTE 9 - CAPITALIZED LEASES - LESSEE DISCLOSURE

In prior years, the District entered into lease agreements to acquire copiers and copier equipment. Capital
assets consisting of equipment have been capitalized in the amount of $918,391. Accumulated depreciation
as of June 30, 2017 was $596,955, leaving a current book value of $321,436. Lease payments have been
reclassified and are reflected as debt service expenditures in the financial statements for the governmental
funds. Principal and interest payments of $184,911 and $30,801, respectively, were paid from the general
fund.

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