Unearned revenue consists of the following as of June 30, 2019:
Unearned summer school tuition and fees $ 178,122
Unearned grants and contracts 6,370
$ 184,492
During fiscal year 2019, the University entered into a line of credit agreement with Fifth Third Bank for a maximum borrowing amount of $2,062,500, maturing on June 30, 2019. At June 30, 2019, borrowings on the line of credit totaled $2,061,650. The line bears interest at the Adjusted LIBOR rate and the interest rate at June 30, 2019 was 4.05%. The agreement was renewed as of July 1, 2019, increasing the maximum borrowing amount to $5,000,000, maturing on June 30, 2020.
Long-term liabilities as of June 30, 2019, are summarized as follows:
| Beginning Balance | Additions | Reductions | Ending Balance | Current Portion | Non-current Portion | |
|---|---|---|---|---|---|---|
| Debt | ||||||
| General receipts bonds | $ 2,525,000 | $ - | $ 240,000 | $ 2,285,000 | $ 250,000 | $ 2,035,000 |
| Bond discount | (36,345) | - | (4,484) | (31,861) | (4,484) | (27,377) |
| Total bonds | 2,488,655 | - | 235,516 | 2,253,139 | 245,516 | 2,007,623 |
| Direct borrowing debt | ||||||
| Note payable – City of | ||||||
| Frankfort | 50,000 | - | 50,000 | - | - | - |
| Total bond payable and note obligations | 2,538,655 | - | 285,516 | 2,253,139 | 245,516 | 2,007,623 |
| Other long-term liabilities | ||||||
| Capital lease obligations - energy savings | 1,719,037 | - | 548,870 | 1,170,167 | 572,669 | 597,498 |
| Federal grants refundable | 596,898 | - | 39,056 | 557,842 | - | 557,842 |
| Total long-term liabilities | $ 4,854,590 | $ - | $ 873,442 | $ 3,981,148 | $ 818,185 | $ 3,162,963 |
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, 2019.
All bonds are collateralized by University property and the pledge of certain revenues, tuition and fees.
The net book value of assets acquired through the capital leases included in the above schedule was $2,269,790 as of June 30, 2019.
In 2009, the University signed a 10-year promissory note with the City of Frankfort, for the purchase of real property. The note payable was paid in full at June 30, 2019.
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