University of Oregon 2019 Annual Financial Report slide image

University of Oregon 2019 Annual Financial Report

Notes to the Financial Statements For the Year Ended June 30, 2019 (dollars in thousands) The schedule of principal and interest payments for the UO's long-term payment obligations is as follows: For the Year Ending June 30, State Note Revenue Bonds SELP SLGRP Capital Leases Total Payments Principal Interest 2020 $ 42,378 $ 8,500 $ 3,549 $ 3,930 $ 3,335 $ 61,692 $ 24,049 $ 37,644 2021 41,027 8,500 3,549 3,930 3,333 60,339 24,607 35,733 2022 39,596 8,500 3,549 3,930 3,319 58,894 24,483 34,412 2023 39,549 8,500 3,549 3,930 3,309 58,837 25,660 33,177 2024 39,563 8,500 3,548 3,930 3,309 58,850 26,954 31,896 2025-2029 187,494 42,500 17,743 12,270 16,546 276,553 138,749 137,802 2030-2034 165,760 42,500 9,407 16,545 234,212 130,096 104,116 2035-2039 144,947 42,500 644 12,466 200,557 129,195 71,362 2040-2044 36,817 42.500 12,466 91,783 43,803 47,980 2045-2049 190,500 3,532 194,032 173,424 20,608 Total Future Payment Obligations 737,131 403,000 45,538 31,920 78,160 1,295,749 $ 741,020 $ 554,729 Less: Interest Component of Future Payments Principal Portion of Future Payments Adjusted by: Unamortized Bond Premiums (272,054) (233,000) (10,957) (8,154) (30,564) (554,729) 465,077 170,000 34,581 23,766 47,596 741,020 28,092 28,092 Total Long-Term Payment Obligations $ 465,077 $ 198,092 $ 34,581 $ 23,766 $ 47,596 $ 769,112 The State of Oregon has issued various debt instruments to fund capital projects at the UO. These debt instruments include general obligation bonds under articles XI-F(1), XI-G, and XI-Q of the Oregon Constitution, certificates of participation (COPs), and lottery bonds. As of July 1, 2014, all of the state debt instruments for which the UO had a payment obligation became part of a new Agreement for Debt Management (ADM). The UO also borrows funds from the Oregon Department of Energy. Principal and interest amounts due relating to the UO's share of these debt issuances are payable to the state. In addition, the UO has independently issued general revenue bonds to fund capital projects. A. Agreement for Debt Management (ADM) In connection with the UO becoming an independent public entity with statewide purposes and missions, the UO entered into an ADM dated July 1, 2014, with the state. The ADM was amended and restated on July 1, 2015 and July 1, 2017. It stipulates that all of the principal and interest associated with general obligation bonds under article XI-F(1) bonds, XI-Q bonds, and COPs, that were deemed university-paid as of July 1, 2014, are to be paid to the state from UO revenues and are displayed as State of Oregon Note Payable. B. State-Paid Bonds During the fiscal year ended June 30, 2019, the state issued bonded indebtedness applicable to the UO as follows: • XI-G tax-exempt bonds series 2019 G of $141,855, • with effective rates ranging from 1.43 to 2.88 percent, are due serially through 2044, for capital construction. The UO's expected portion of the 2019 G bond sale was $70,000 for Knight Campus for Accelerating Scientific Impact Phase 1 & 2 construction. The UO will receive these amounts on a reimbursement basis as capital grants, and the state will be responsible for all principal and interest payments. XI-Q tax-exempt bonds series 2019 A of $316,860, with effective rates ranging from 1.65 to 3.30 percent, are due serially through 2044 for capital construction. The UO's expected portion of the 2019 A bond sale was $12,478 for capital improvement and renewal projects. The UO will receive these amounts on a reimbursement basis as capital grants and the state will be responsible for all principal and interest payments. C. General Revenue Bonds During the year ended June 30, 2019, no new general revenue bonds were issued. During the fiscal year ended June 30, 2018, the UO issued tax exempt general revenue bond series 2018 A of $60,000, with net proceeds of $70,693, due April 1, 2048, with an effective rate of 2.96 percent, for capital construction. These bonds have been rated Aa2 by Moody's. Interest payments are due semiannually. 34 University of Oregon
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