Public Hearings 2017 Dauphin County Budget.

November 15, 2016.

Harrisburg University President Eric Darr.

Audited Financial Statement June 30 2016.

Notes to Financial Statements Page 13.

County of Dauphin

During the years ended June 30, 2010 and 2011, the University borrowed $ 1,000,000 and $ 1,200,000, respectively, from the County of Dauphin, Pennsylvania. On February 29, 2012, the University borrowed $ 1.5 million from the County of Dauphin under the County Guarantee described above under "bonds payable". At that time, the University and the County of Dauphin entered into a promissory note for the entire $ 3.7 million at an interest rate of 0.5% and due date of December 29, 2019. On February 28, 2013, the University borrowed an additional $ 1.5 from the County of Dauphin under the County Guarantee. At that time, the University and the County of Dauphin entered into a promissory note for the entire $ 5.2 million at an interest rate of 0.5%. During the year ended June 30, 2014, the County forgave the $ 1.5 million borrowed on February 28, 2013, reducing the outstanding loan balance to $ 3.7 million at June 30, 2014. A $ 45,000 principal payment was made during 2015. The balance payable is $ 3,655,000 at June 30, 2016 and 2015.

On February 26, 2016, the County advanced $ 994,755 to the University under the guarantee agreement. The County considers the 2014 debt forgiveness and the 2014‐2016 advances to be grants to HU and therefore does not expect repayment (see Note 7).

(A) Under the terms of a promissory note dated February 28, 2013, the $ 3,655,000 owed to Dauphin County at June 30, 2016 and 2015 is at an interest rate of 0.5%, with repayment of both principal and interest due on December 29, 2019.

Photo file.