FY 2009 Comprehensive Annual Financial Report - Harford County ...

NOTE 7 - LONG-TERM LIABILITIES
HARFORD COUNTY PUBLIC SCHOOLS
NOTES TO FINANCIAL STATEMENTS
June 30, 2009
Long-term liability activity for the year ended June 30, 2009 was as follows:
Balance at
July 1,
2008 Increase Reductions
Balance at
June 30,
2009
Due Within
One Year
Capital lease $ 10,864,415 $ - $ 282,845 $ 10,581,570 $ 296,928
Compensated absence 28,922,483 1,937,301 2,067,279 28,792,505 1,390,103
OPEB obligation 8,489,815 36,024,000 - 44,513,815 -
Total Governmental Activities $ 48,276,713 $ 37,961,301 $ 2,350,124 $ 83,887,890 $ 1,687,031
Compensated absences have typically been liquidated by the General Fund in prior years.
The Board entered into lease agreements as lessee to construct the administration building in the
amount of $11,400,223, which was completed in January 2007. The lease agreement is for a
period of twenty-five years. The asset acquired and capitalized under the capital lease is as
follows:
Building cost $ 10,852,395
Less accumulated depreciation 759,668
Net Book Value $ 10,092,727
The future minimum lease obligations and the net present value of these minimum lease
payments as of June 30, 2009 were as follows:
Years Ending June 30,
2010 $ 823,822
2011 823,822
2012 823,822
2013 823,822
2014 823,822
2015 – 2019 4,119,110
2020 – 2024 4,119,110
2025 – 2029 4,119,110
2030 823,822
Total minimum lease payments 17,300,262
Less:
Amount representing interest 6,718,692
Present Value of Minimum Lease Payments $ 10,581,570
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