The principal and interest repayment requirements relating to the outstanding bonds payable at June 30, 2019, are as follows:
| Year ending June 30 | Principal | Interest | Total |
|---|---|---|---|
| 2020 | $ 250,000 | $ 88,291 | $ 338,291 |
| 2021 | 260,000 | 78,791 | 338,791 |
| 2022 | 270,000 | 68,781 | 338,781 |
| 2023 | 280,000 | 58,319 | 338,319 |
| 2024 | 290,000 | 47,469 | 337,469 |
| 2025-2028 | 935,000 | 73,431 | 1,008,431 |
| Total | $ 2,285,000 | $ 415,082 | $ 2,700,082 |
During 2005, the University entered into a capital lease for an energy management project. The lease obligation has an interest rate of 4.29% and requires annual payments of principal and interest through 2021. 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, 2019:
Year ending June 30,
2020 $ 616,792
2021 616,791
Total minimum lease payments 1,233,583
Less: amounts representing interest (63,416)
Present value of minimum lease payment $ 1,170,167
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, 2019, are as follows:
Year ending June 30,
2020 $ 139,042
2021 121,697
2022 114,397
2023 40,178
2024 11,394
2025 3,798
$ 430,506
Lease expense was $246,829 for the year ended June 30, 2019.
29.