NOTE 7 - LEASE OBLIGATIONS

LARIMER COUNTY, COLORADO
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1999
NOTE 7 - LEASE OBLIGATIONS:

Capital Lease:

Solid Waste (an enterprise fund) entered into a $3.1 million lease purchase agreement for a materials recycling facility at the Larimer County landfill. The lease requires monthly payments for twelve years with a final $1.00 buyout due July, 2004. The book value of the asset at December 31, 1999 is $2,538,631.

Print Shop (an internal service fund) entered into a $74,585 lease purchase agreement for a copier/duplicator. The lease requires monthly payments for five years with final payment due April, 2001. The book value of the asset at December 31, 1999 is $22,932.

The following is a schedule by years of future minimum lease payments under the capital lease together with the present value of the net minimum lease payments as of December 31, 1999:

Year	Solid Waste	Print Shop	Total
2000	$ 389,123	$ 14,915	$ 404,038
2001	389,123	4,972	394,095
2002	389,123	-	389,123
2003	389,123	-	389,123
2004	226,989	-	226,989
Total minimum lease payments	1,783,481	19,887	1,803,368

Less: Amount representing interest	276,522	1,240	277,762
Present value of net minimum lease payments	$ 1,506,959	$ 18,647	$ 1,525,606

Operating Leases:

The County has entered into various operating leases for office space, office equipment and software maintenance. Lease terms are generally on a month-to-month or annual basis with renewal options common. Costs incurred in 1999 for operating leases were $1,135,915 in the governmental funds and $24,035 in the proprietary funds. Of these costs, $161,962 in the governmental funds and $21,642 in the proprietary funds were interfund operating leases for office space.

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