Budget and Finance

UNIVERSITY OF CINCINNATI JUNE 30, 2008

the date of issuance, the variable weekly rate has ranged from 2.99% to 10%. Series 2008B variable rate

bonds were issued in April 2008; interest rates have ranged from 1.52% to 2.68%.

The Governmental Accounting Standards Board (GASB) requires the disclosure of debt service

requirements to maturity as depicted above, with the interest on variable rate debt being determined by using

the rate in effect at the financial statement date. The University has been exposed to negative market

conditions associated with insured variable rate debt, as the insurers on Series 2004B and 2007B bonds

both had rating downgrades in fiscal year 2008, resulting in interest rates of 9% and 10% respectively being

paid on these issues at the end of June 2008. The University has taken steps subsequent to June 30,

2008, to decrease interest rate exposure on these issues as presented in Section F of this footnote.

Scheduled principal and interest payments on capital lease obligations and loans payable subsequent to

June 30, 2008 are (in thousands):

Fiscal

Year Principal Interest Total

2009 $ 8,795 $ 8,005 $ 16,800

2010 8,825 7,562 16,387

2011 8,199 7,111 15,310

2012 7,701 6,674 14,375

2013 6,932 6,333 13,265

2014-2018 35,586 26,146 61,732

2019-2023 38,025 17,322 55,347

2024-2028 29,665 8,025 37,690

2029-2033 15,065 2,333 17,398

Total $158,793 $89,511 $248,304

E) Defeased Debt

Debt defeased by the University for which amounts remain outstanding at June 30, 2008, is (in thousands):

Bond Series

Maturity

Dates

Interest

Rate(s)

Amount

Outstanding

Residence Hall and Dining

Facility Bonds: (^)
Series F 1972-2009 5.25% (^) $ 650
General Receipts Bonds:
Series AL-1 2014-2019 5.60-5.75% (^) 2,140
Series AO 2014-2019 5.60-5.75% (^) 4,285
Series AT 2014-2020 5.50-5.75% 325
Series AV 2014-2020 5.50-5.75% (^365)
Series AZ 2014-2020 5.50-5.75% (^850)
Series 2001A 2015-2019 5.75% (^) 29,245
Series 2001A 2022-2024 5.25% (^) 24,030
Series 2002F 2016-2020 5.375% (^) 13,010
Total
$74,900
Neither the outstanding indebtedness nor the related trust accounts are reflected in the accompanying
financial statements for the fully defeased bonds listed above. United States Treasury obligations in an
amount sufficient to pay principal and interest on the defeased obligations, when due, have been deposited
with a trustee in accordance with the defeasance of the debt.