LARIMER COUNTY, COLORADO
NOTES TO FINANCIAL STATEMENTS
Year Ended December 31, 1997

NOTE 8 - LEASE OBLIGATIONS:

Capital Lease:

Building Inspection (a special revenue fund) entered into a $12,942 lease purchase agreement for a copier. The lease requires monthly payments for three years with a final $1.00 buyout due December, 1998.

Capital Outlay (a capital projects fund) entered into a $777,801 lease purchase agreement for a Unisys computer in the Information Management Department. This lease requires yearly payments for three years with a final payment due January, 1998.

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, 1997 is $2,680,208.

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, 1997 is $56,223.

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, 1997:

Building Capital
YearInspection Outlay Solid Waste Print Shop Total
1998$ 5,047 $ 314,884$ 389,123 $ 14,915$ 723,969
1999 - - 389,12314,915 404,038
2000 - - 389,12314,915 404,038
2001 - - 389,1234,972 394,095
2002 - - 389,123 - 389,123
2003-2004               -                - 616,112               - 616,112
Total minimum lease payments 5,047314,884 2,561,72749,717 2,931,375
Less: Amount representing interest 27515,650 541,8107,046 564,781
Present value of net minimum lease payments$ 4,772 $ 299,234$ 2,019,917 $ 42,671$ 2,366,594


Operating Leases:

The County has entered into various operating leases for office space, office equipment and software maintenance. Lease terms are generally on a month­to­month or annual basis with renewal options common. Costs incurred in 1997 for operating leases were $749,163 in the governmental funds and $23,549 in the proprietary funds. Of these costs, $41,790 in the governmental funds and $20,267 in the proprietary funds were interfund operating leases for office space.

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