During fiscal year 2021, the University entered into a line of credit agreement with Fifth Third Bank for a maximum borrowing amount of $5,000,000, maturing on June 30, 2021. At June 30, 2021, borrowings on the line of credit totaled $5,000,000. The line bears interest at the Adjusted LIBOR rate and the interest rate at June 30, 2021 was 2.05%. The agreement was renewed as of July 1, 2021, and was paid off in full in May 2022. This line of credit is collateralized by the general revenues of the University.
Long-term liabilities as of June 30, 2021, are summarized as follows:
| Beginning Balance | Additions | Reductions | Ending Balance | Current Portion | Non-current Portion | |
|---|---|---|---|---|---|---|
| Debt | ||||||
| General receipts bonds | $ 2,035,000 | $ - | $ 260,000 | $ 1,775,000 | $ 270,000 | $ 1,505,000 |
| Bond discount | (27,377) | - | (4,484) | (22,893) | - | (22,893) |
| Total bonds | 2,007,623 | - | 255,516 | 1,752,107 | 270,000 | 1,482,107 |
| Other long-term liabilities | ||||||
| Capital lease obligations-energy savings | 14,133,958 | 2,679,374 | 886,872 | 15,926,461 | - | 15,926,461 |
| Total long-term liabilities | $ 16,141,581 | $ 2,679,374 | $ 1,142,388 | $ 17,678,568 | $ 270,000 | $ 17,408,568 |
The outstanding General Receipts Bonds Series A Bonds have interest rates from 3.625% - 3.875%. The bonds mature through 2027. The reserve requirements for these issues have been fully funded as of June 30, 2021.
All bonds are collateralized by University property and the pledge of certain revenues, tuition and fees.
The capitalized costs of assets acquired through the capital leases included in the above schedule was $16,693,621 with accumulated amortization of $269,940 as of June 30, 2021. Principal payments on the related asset will begin in the year ended June 30, 2022.
The principal and interest repayment requirements relating to the outstanding bonds payable at June 30, 2021 are as follows:
2022 $ 270,000 $ 68,781 $ 338,781
2023 280,000 58,319 338,319
2024 290,000 47,469 337,469
2025 300,000 36,231 336,231
2026 310,000 24,606 334,606
2027 325,000 12,594 337,594
Total $ 1,775,000 $ 248,000 $ 2,023,000
During 2005, the University entered into a capital lease for an energy management project. The lease obligation had an interest rate of 4.29% and required annual payments of principal and interest through 2021.
31.