Maryland State Lottery Agency (Lottery) - Notes Payable -
As of June 30,2000, the Lottery had notes payable outstanding related to the financing of certain gaming equipment. The
balance outstanding as of June 30,2000, is $4,068,000. Payments of principal and interest, at rates ranging from 4.5% to 6.7%, are
to be made through 2005.
C. Long Term Obligations - Component Units:
Higher Education Fund-
Certain State higher education institutions have issued revenue bonds and mortgage loans payable for the acquisition and
construction of student housing and other facilities. Student fees and other user revenues collateralize the revenue bonds. The mortgage
loans payable are collateralized by real estate. Interest rates range from 4.3% to 7.2% on the revenue bonds with the rate being 3.0% on
the mortgage loans payable. Since June 1992, the University System of Maryland (System) has issued serial Notes Payable to finance
the acquisition of new equipment and to refinance the balance of amounts due under certain installment purchase agreements for
equipment then in the possession of the System. Payments of principal and interest, at rates ranging from 2.6% to 6.2%, are to be made
semiannually through 2007. The Notes Payable are callable, at the option of the System, at premiums of no more than 2.0% of the
outstanding principal, beginning in 2003. Maturities of principal are as follows (amounts expressed in thousands).
Years Ending
|
Notes Payable and
|
|
|
June 30,
|
Other Long-Term Debt
|
Revenue Bonds
|
Total
|
2001......................................................................................................................
|
$ 4,782
|
$ 34,229
|
$ 39,011
|
2002......................................................................................................................
|
4,987
|
35,861
|
40,848
|
2003......................................................................................................................
|
5,046
|
35,803
|
40,849
|
2004......................................................................................................................
|
5,321
|
36,352
|
41,673
|
2005......................................................................................................................
|
5,483
|
35,208
|
40,691
|
2006 and thereafter...............................................................................................
|
81,691
|
414,175
|
495,866
|
|
$107,310
|
$591,628
|
$698,938
|
The bonds issued are the debt and obligation of the issuing higher education institutions and are not a debt and obligation of, or
pledge of, the faith and credit of the State.
On September 1,1999, the System issued $19,140,000 of University System of Maryland Auxiliary Facility and Tuition 1999
Series B Revenue Bonds. The 1999 Series B bonds consist of serial and term bonds maturing through the year ended June 30,2008
with stated rates of interest of from 4.1% to 5.0%, and were issued at an aggregate premium of $167,000. The proceeds of the 1999
Series B bonds were used to advance refund $18,647,000 of 1989 Series A bonds. The advance refunding of Revenue Bonds
reduced future debt service requirements by $1,189,000 and resulted in an economic gain (the present value of the difference
between the debt service requirements on the old, refunded debt and the new debt) of $811,000.
At June 30,2000, cash and cash equivalents in the amount of $18,115,000 were held by the trustee as unexpended proceeds of
the Revenue Bonds.
On July 20,2000, the System issued $90,000,000 of University System of Maryland Auxiliary Facility and Tuition 2000 Series
A Revenue Bonds. The 2000 Series A bonds consist of serial bonds maturing through the year ended June 30,2020 with stated
rates of interest of 4.5% to 5.8% and were issued at an aggregate premium of $205,242.
On July 15,2000, St. Mary's College of Maryland issued $11,245,000 of Academic Fees and Auxiliary Facility Fees Revenue
Bonds, 2000 Series A. Proceeds of the bonds will be used to pay for the construction of a new student housing facility, renovation
of an addition to the existing gymnasium and the issuance costs of the Revenue Bonds, 2000 Series A.
Obligations under capital leases of $8,743,000 exist as of June 30, 2000, bearing interest at annual rates ranging from 4.6% to
7.2%. Following is a schedule of annual future minimum payments under these obligations, along with the present value of the
related net minimum payments as of June 30,2000 (amounts expressed in thousands).
Years Ending June 30,
|
Amount
|
2001......................................................................................................................
|
$ 1,690
|
2002......................................................................................................................
|
1,462
|
2003......................................................................................................................
|
1,253
|
2004......................................................................................................................
|
954
|
2005......................................................................................................................
|
512
|
2006 and thereafter............... ................................................................................
|
7,936
|
Total future minimum payments ..........................................................................
|
$13,807
|
Less: Amount representing interest......................................................................
|
5,064
|
Present value of net minimum payments......................................... .....................
|
$ 8,743
|
69
|
|