Page 78 - Hudson CAFR Report 2018

HUDSON CITY SCHOOL DISTRICT
SUMMIT COUNTY, OHIO

NOTES TO THE BASIC FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2018

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, 2018, $17,580,000 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 2.5% to 5% and mature on December 1, 2047. 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.

School Improvement Bonds

The school improvement bonds were issued on March 6, 2018 in the amount of $81,550,000. The
proceeds are being used to finance construction of a new middle school and improvements to other
District facilities. The bonds bear an interest rate ranging from 2% to 5% and mature on December 1,
2021. Debt payments are made from the bond retirement fund with the proceeds from a voted property
tax levy.

B. Principal and interest requirements to retire the certificates of participation outstanding at June 30,
2018, are as follows:

Fiscal Year Certificates of Participation

Ending June 30, Principal Interest Total

2019 $ 665,000 $ 568,814 $ 1,233,814
2020 1,242,189
2021 690,000 552,189 1,250,801
2022 1,262,033
2023 715,000 535,801 1,271,173
2024 - 2028 6,563,890
2029 - 2033 745,000 517,033 6,968,608
2034 1,450,800
775,000 496,173

4,580,000 1,983,890

5,960,000 1,008,608

1,395,000 55,800

Total $ 15,525,000 $ 5,718,308 $ 21,243,308

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