LONG-TERM DEBT

Following is a summary of long-term debt transactions of the District for the year ended June 30, 2020.

Balance

Premium on Bonds - 64,474,087 (1,074,568) 63,399,519 2,641,646

Forward Delivery Agreement 524,659 - (108,550) 416,109 108,550

Capital Lease Obligation 64,660 - (20,775) 43,885 21,544

Compensated Absences 3,469,141 1,599,006 (375,517) 4,692,630 187,759 Total Governmental Activities: $ 37,401,166 $ 316,073,093 $ (10,802,579) $ 342,671,680 $ 19,928,585

General Obligation Debt Balance

June 30, 2020 General Obligation Bond, Series 2012, were issued in the amount of $8,177,991 as required

match to the Colorado Building Excellent Schools Today (BEST) grant to finance the construction of a new middle school and abatement of current school. Principal payments due annually beginning 12/1/13 and maturing 12/1/2032; interest payments due semi-annually on 6/1 and 12/1 at a rate of 3.00%.

$ 5,844,537

General Obligation Bond, Series 2015B, were issued in the amount of $37,170,000 to refund a portion of the District's outstanding GO Refunding Bonds, Series 2006 and to pay a portion of the costs of issuance of the Bonds. Principal payments due annually beginning 12/1/2015 and maturing 12/1/2021; interest payments due semi-annually on 6/1 and 12/1; interest rates range from .5%-2.55%.

18,275,000

General Obligation Bond, Series 2020, issued for the construction, installation and equipping of various capital projects, including the construction of a new Greeley West High School, New PK-8 School and significant renovations and additions to McAuliffe STEM Academy and Chappelow K-8 School. Principal payments due annually beginning 12/31/2020 and maturing 12/31/2044; Interest payments due semi-annually on 6/1 and 12/1 at a rate of 5%

250,000,000

Total General Obligation Bonds $ 274,119,537

June 30, 2020

NOTE 6 – LONG-TERM DEBT – continued Future Debt Service Requirements

The following schedule represents the District’s debt service requirements to maturity for outstanding general obligation bonds at June 30, 2020:

Lease Obligation

The District entered into a lease agreement on April 10, 2017, as lessee for financing a modular for McAuliffe STEM Academy K-8. The lease agreement qualifies as a capital lease for accounting purposes and, therefore, has been recorded at the present value of the future minimum lease payments at the inception date. The lease requires annual payments totaling $23,167 which includes principal and interest. The lease matures July 1, 2022.

The assets acquired through capital leases are as follows:

Balance June 30, 2020 McAuliffe STEM Academy K-8 Modular $ 106,959

Less: Accumulated Depreciation 64,175

Total $ 42,784

The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2020, were as follows:

Fiscal Year Principal Interest Total

2021 21,544 1,624 23,168

2022 22,341 827 23,168 Total $ 43,885 $ 2,451 $ 46,336

For financial reporting purposes, the District follows the requirements of GAAP; for capital leases, the present value of future minimum lease payments is shown as a liability and related assets are capitalized in the basic financial statements. It is the expectation that the leases will be renewed annually until title to the related party is acquired pursuant to the leases.

Fiscal Year Principal Interest Total

2021 $ 16,969,086 $ 12,818,322 $ 29,787,408 2022 15,515,330 12,251,205 27,766,535 2023 6,106,913 11,831,638 17,938,551 2024 6,403,844 11,526,903 17,930,747 2025 6,716,133 11,207,179 17,923,312 2026-2030 38,823,332 50,661,382 89,484,714 2031-2035 48,169,899 39,978,906 88,148,805 2036-2040 59,490,000 26,707,500 86,197,500 2041-2045 75,925,000 9,860,375 85,785,375

Total $ 274,119,537 $ 186,843,410 $ 460,962,947

June 30, 2020

NOTE 6 – LONG-TERM DEBT – continued Component Units

Following is a summary of long-term debt transactions for the charter schools for the year ended June 30, 2020.

At June 30, 2020, $53,544 of the current accrued compensated absences balance for Frontier Academy was due and payable and is included in accrued salaries and benefits.

Balances Balances Due Within

6/30/2019 Additions Reductions 6/30/2020 One Year

GOVERNMENTAL ACTIVITIES

Frontier Academy

Bonds Payable – Series 2016 $20,740,000 $ - $ (415,000) $20,325,000 $ 430,000

Premium 1,199,387 - (76,792) 1,122,595 75,238

Compensated Absences 48,150 111,650 (83,459) 76,341 53,544

21,987,537 111,650 (575,251) 21,523,936 558,782

Salida del Sol Academy

Bonds Payable – Series 2015 12,060,000 - (12,060,000) - - Bonds Payable – Series 2020 - 14,399,611 - 14,399,611 240,838

12,060,000 14,399,611 (12,060,000) 14,399,611 240,838

Union Colony Schools

Bonds Payable – Series 2018 18,585,000 - (235,000) 18,350,000 245,000 Series 2018 Premium 1,556,331 - (46,113) 1,510,218 46,113

20,141,331 - (281,113) 19,860,218 291,113

University Schools

Bonds Payable 27,985,000 - (550,000) 27,435,000 570,000

Bond Premium 129,557 - (9,966) 119,591 9,966

28,114,557 - (559,966) 27,554,591 579,966

West Ridge Academy

Bonds Payable – Series 2019A&B 10,430,000 - (120,000) 10,310,000 140,000 Bonds Premium – Series 2019A&B 725,407 - (20,726) 704,681 20,726 Compensated Absences 7,978 39,247 (29,644) 17,581 8,791

11,163,385 39,247 (170,370) 11,032,262 169,517

Total $ 93,466,810 $ 14,550,508 $(13,084,474) $94,370,618 $ 1,840,216

June 30, 2020

NOTE 6 – LONG-TERM DEBT – continued

Future Debt Service Requirements – Component Units

The following schedule represents the charter school component unit’s debt service requirements to maturity for outstanding general obligation bonds and notes payable at June 30, 2020:

Frontier Academy Charter School – The Frontier Academy, has obtained funding through the Colorado Educational and Cultural Facilities Authority through the issuance of Charter School Revenue bonds in the amount of $21,850,000. The Frontier Academy Facilities Corporation entered into a mortgage lease agreement with Frontier Academy to use the bond proceeds for current refunding of the Authority’s Charter School Revenue Bonds Series 2006 in the amount of $17,750,000, and as of July 1, 2016 the aggregate principal amount of

$12,590,000. Proceeds from the bonds are used for improvements to the educational facilities. The bonds bear annual interest ranging from 3% to 5%, maturing in 2046.

Salida del Sol Academy Building Corporation has obtained funding through the Public Finance Authority (the authority) through the issuance of refunding revenue bonds in the amount of $14,399,611. Proceeds from the Series 2020 bonds were issued to refund the Series 2015 bonds. The Authority and Salida del Sol Academy Building Corporation have entered into a loan agreement wherein the proceeds of the Authority have been loaned to the Building Corporation. The Series 2020 bonds carry an interest rate of 4.725%, maturing in 2030.

Union Colony Schools – The Union Colony Preparatory Building Corporation has obtained funding through the Colorado Education and Facilities Authority (the authority) through the issuance of bonds in the amount of

$18,585,000. Proceeds from the Series 2018 bonds were used for the Union Colony Schools Building

Corporation’s use in refunding previous debt and funding capital improvements to the existing school buildings.

The Authority and Building Corporation have entered into a loan agreement wherein the proceeds of the Authority bonds have been loaned to the Building Corporation. The bonds accrue interest at a rate of 4 to 5%, maturing in 2053.

University Schools Charter School – The University Lab School Building Corporation has refunded the Series 2004 and Series 2012 revenue bonds with Series 2015 through the Colorado Educational and Cultural Facilities Authority, in the amount $29,630,000. Proceeds from the Series 2012 bonds were used to refund the existing Charter School Revenue Bonds, Series 2004. The Bonds accrue interest at rates ranging from 2% to 5%, maturing in 2045.

West Ridge Academy – The West Ridge Academy Building Corporation has obtained funding through the Colorado Educational and Cultural Facilities Authority (the Authority) issued its Charter School Refunding and Improvement Revenue Bonds as Series 2019A and 2019B in the amount of $10,430,000. The bonds were issued to refund the Series 2017A and 2017B bonds and to finance improvements of existing facilities. The Authority and Building Corporation have entered into a loan agreement wherein the proceeds of the Authority bonds have been loaned to the Building Corporation. The 2019A bonds carry interest rates of 3% to 5% and mature between June

Fiscal Year Principal Interest Total

June 30, 2020

NOTE 6 – LONG-TERM DEBT – continued

Future Debt Service Requirements – Component Units – continued

1, 2021 and June 1, 2054. The 2019B bonds carry an interest rate of 2% and mature on June 1, 2021.