During 2020, the University entered into a capital lease for an additional energy management project. The lease obligation has an interest rate of 2.7095% and requires annual payments of principal and interest beginning in fiscal 2022 through 2036. The lease obligation will be paid with guaranteed energy savings. The following is a schedule of future minimum payments required for the capital lease obligations at June 30, 2021:
2022 $ 1,353,014
2023 1,353,014
2024 1,353,014
2025 1,353,014
2026 1,353,014
2027-2036 13,530,147
Total minimum lease payments 20,295,217
Less: amounts representing interest (4,368,756)
Present value of minimum lease payment $ 15,926,461
The University leases certain assets under operating lease agreements. The operating leases expire in various years through 2025. These leases do not transfer assets at the end of the lease term. Periods on these leases range from one to five years and requires the University to pay all executor costs (maintenance, insurance, taxes).
Future minimum lease payments at June 30, 2021, are as follows:
| Year ending June 30 | ||
| 2022 | $ 305,692 | |
|---|---|---|
| 2023 | 228,493 | |
| 2024 | 198,329 | |
| 2025 | 34,954 | |
| $ 767,468 | ||
Lease expense was $545,959 for the year ended June 30, 2021.
32.