The principal and interest repayment requirements relating to the outstanding bonds payable at June 30, 2023, are as follows:
| Year Ending June 30, | Principal | Interest | Total |
|---|---|---|---|
| 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 | $ 1,225,000 | $ 120,900 | $ 1,345,900 |
During 2020, the University entered into a finance purchase for an energy management system. The obligation has an interest rate of 2.7095% and requires annual payments of principal and interest beginning in fiscal 2022 through 2036. The agreement grants a continuing first priority security interest in the equipment. In an event of a default, the lessor can accelerate the repayment of the lease payments. The obligation will be paid with guaranteed energy savings.
The capitalized costs of assets acquired through the financed purchases included in the above schedule was $16,693,621 with accumulated amortization of $2,594,753 as of June 30, 2023. These assets are pledged as collateral in an event of default.
The principal and interest repayment requirements relating to the energy management system obligation payable at June 30, 2023, are as follows:
| Year Ending June 30, | Principal | Interest | Total |
|---|---|---|---|
| 2024 | $ 960,036 | $ 392,978 | $ 1,353,014 |
| 2025 | 986,224 | 366,790 | 1,353,014 |
| 2026 | 1,013,127 | 339,887 | 1,353,014 |
| 2027 | 1,040,764 | 312,250 | 1,353,014 |
| 2028 | 1,069,154 | 283,860 | 1,353,014 |
| 2029-2033 | 5,799,487 | 965,586 | 6,765,073 |
| 2034-2036 | 3,873,326 | 185,718 | 4,059,044 |
| Total | $ 14,742,118 | $ 2,847,069 | $ 17,589,187 |
The 2021 Certificates of Participation (COPs) consist of 13 serial bonds with maturity dates ranging from November 1, 2024, to November 1, 2036, yield rate ranging from 0.55% to 1.91% and 5 term certificates with maturity dates ranging from November 1, 2038, to November 1, 2056, yield rates ranging from 2.64% to 3.29%. The pricing resulted in a 2.92% true interest cost. The debt service on the COPs will be funded by monthly lease payments by the University to the Trustee through November 2056.
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