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County of Hawaii <br />Department of Water Supply <br />(A component unit of the County of Hawaii, State of Hawaii) <br />NOTES TO FINANCIAL STATEMENTS <br />June 30, 2017 <br />NOTE E - LONG-TERM OBLIGATIONS (Continued) <br />The public improvement bonds consist of long-term obligations to the County that reflect the <br />Department's proportionate share of general obligation bonds that were issued by the <br />County, in part, for the purpose of improving the public water system. <br />The following is a summary of changes in long-term debt during the fiscal year ended <br />June 30, 2017: <br />Amount <br />Beginning balance $ 57,804,507 <br />Additions 11,978,695 <br />Retirements (4,508,562) <br />Forgiveness (1,656,257) <br />Ending balance $ 63,618,383 <br />At June 30, 2017, future principal and interest payments for long-term debt are scheduled as <br />follows: <br />Year Ending June 30, Principal <br />2018 <br />$ 3,964,472 <br />2019 <br />4,744,774 <br />2020 <br />4,920,787 <br />2021 <br />5,028,479 <br />2022 <br />5,142,560 <br />2023-2027 <br />21,971,330 <br />2028-2032 <br />11,790,844 <br />2033-2037 <br />5,443,816 <br />2038-2042 <br />603,508 <br />2043 <br />7,813 <br />Interest <br />$ 1,983,860 <br />1,836,847 <br />1,667,775 <br />1,475,968 <br />1,276,872 <br />3,921,372 <br />1,072,178 <br />248,471 <br />13,010 <br />322 <br />Total <br />$ 5,948,332 <br />6,581,621 <br />6,588,562 <br />6,504,447 <br />6,419,432 <br />25,892,702 <br />12,863,022 <br />5,692,287 <br />616,518 <br />8,135 <br />$ 63,618,383 $ 13,496,675 $ 77,115,058 <br />In February 2016, the County issued general obligation refunding bonds which consisted of <br />$26,995,000 of 2016 Series B, $44,835,000 of 2016 Series C bonds, $28,860,000 of 2016 <br />Series D bonds and $25,415,000 of 2016 Series E bonds. The proceeds of the issuance <br />were used to defease and advance refund the County's 2006 Series A, 2007 Series A, 2008 <br />Series A and 2010 Series A bonds which had interest rates ranging from 4.00% to 6.00%. <br />The County's proportionate share of the net proceeds from all refunding bonds was <br />$128,919,923 (including a premium of $23,176,079 and after payment of $509,906 in <br />underwriting fees and other issuance costs) were used to purchase U.S. government <br />24 <br />