The principal and interest repayment requirements relating to the outstanding bonds payable at June 30, 2010, are as follows:
| Principal | Interest | Total | |
|---|---|---|---|
| Year ending June 30, | |||
| 2011 | $ 1,285,000 | $ 212,909 | $ 1,497,909 |
| 2012 | 360,000 | 170,302 | 530,302 |
| 2013 | 375,000 | 157,251 | 532,251 |
| 2014 | 385,000 | 143,658 | 528,658 |
| 2015 | 210,000 | 129,701 | 339,701 |
| 2016 - 2020 | 1,160,000 | 527,821 | 1,687,821 |
| 2021 - 2025 | 1,400,000 | 289,591 | 1,689,591 |
| Thereafter | 635,000 | 37,208 | 672,208 |
| Total | $ 5,810,000 | $ 1,668,441 | $ 7,478,441 |
During 2005, the University entered into a capital lease for an energy management project. The lease obligations have an interest rate of 4.29% and require 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 obligation at June 30, 2010:
Year ending June 30,
2011 $ 655,697
2012 616,792
2013 616,792
2014 616,792
2015 616,792
Thereafter 3,700,753
Total minimum lease payments 6,823,618
Less: amounts representing interest 1,421,289
Present value of minimum lease payment $ 5,402,329
Kentucky Teachers Retirement System: All faculty and exempt employees required to hold a degree and occupying full-time positions, defined as seven-tenths (7/10) of normal full-time service on a daily or weekly basis, are required by state law to participate either in the Kentucky Teachers Retirement System (KTRS) or the Optional Retirement Plan (ORP). KTRS, a cost sharing, multiple-employer, public employee retirement system, provides retirement benefits based on an employee's final average salary and number of years of service. Benefits are subject to certain reductions if the employee retires before reaching age sixty, unless the employee has twenty-seven or more years of participation in the plan. The plan also provides for disability retirement, death and survivor benefits, and medical insurance.
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