LAKELAND COLLEGE

32
Note 12
Long-Term Liabilities
2008 2007
(a) Long Term Debt $ 2,280,000 $ 2,400,000
(b) Capital Lease 1,669,202 -
Total Long Term Liabilities $ 3,949,202 $ 2,400,000
Current Portion (588,004) (120,000)
Long Term Portion $ 3,361,198 $ 2,280,000
(a) Long-term Debt:
2008 2007
Alberta capital financing authority (AFCA) $ 2,280,000 $ 2,400,000
Less: current portion $ (120,000) $ (120,000)
$ 2,160,000 $ 2,280,000
The ACFA loan is a 25 year debenture secured by residences with value of $2,956,794. The debenture incurs interest at 6.5% per annum.
AFCA Loan
2008-09 $ 120,000
2009-10 120,000
2010-11 120,000
2011-12 120,000
2012-13 and subsequent 1,800,000
$ 2,280,000
(b) Capital Lease:
2008 2007
IBM capital lease 1,669,202 -
Less: current portion (468,004) -
Non-current capital lease obligation 1,201,198 -
The minimum annual payments under the capital lease obligation are as follows:
IBM Lease
2008-09 $ 468,004
2009-10 468,004
2010-11 468,004
2011-12 468,004
Total minimum lease payments $ 1,872,016
Less: amount representing interest (202,814)
Capital lease obligation $ 1,669,202
The IBM lease is for goods and services relating to the restructuring of the College network and enabling the wireless internet access system and is for a
term of 5 years with an imputed interest rate of 4.75%. During the year, interest of $66,453 (2007 -$0) has been charged to the expense.
ANNUAL REPORT 2007-08
LAKELAND COLLEGE