LAKELAND COLLEGE Annual Repor t 2008 - 2009

ANNUAL REPORT 2008-2009
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Note 12 Long-Term Liabilities
2009 2008
(a) Long Term Debt $ 2,160,000 $ 2,280,000
(b) Capital Lease 1,316,932 1,716,712
Total Long Term Liabilities $ 3,476,932 $ 3,996,712
Current Portion (607,462) (607,462)
Long Term Portion $ 2,869,470 $ 3,389,250
a) Long-term Debt: 2009 2008
Alberta capital financing authority (ACFA) $ 2,160,000 $ 2,280,000
Less: current portion (120,000) (120,000)
$ 2,040,000 $ 2,160,000
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
2009-10 $ 120,000
2010-11 120,000
2011-12 120,000
2012-13 120,000
2013-14 and subsequent 1,680,000
$ 2,160,000
(b) Capital Lease:
2009 2008
IBM capital lease 1,316,932 1,669,202
Less: current portion (487,462) (487,462)
Non-current capital lease obligation 829,470 1,181,740
The minimum annual payments under the capital lease obligation are as follows:
IBM Lease
2009-10 487,462
2010-11 487,462
2011-12 487,462
Total minimum lease payments $ 1,462,386
Less: amount representing interest (145,454)
Capital lease obligation $ 1,316,932
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 $87,681 (2008
-$74,963) has been charged to the expense.