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, 1998 is $2,602,708.
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, 1998 is $40,131.
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, 1998:
|
Year |
Solid Waste |
Print Shop |
Total |
|
1999 |
$ 389,123 |
$ 14,915 |
$ 404,038 |
|
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 |
2,172,604 |
34,802 |
2,207,406 |
|
Less: Amount representing interest |
399,646 |
3,592 |
403,238 |
|
Present value of net minimum |
|||
|
lease payments |
$ 1,772,958 |
$ 31,210 |
$ 1,804,168 |
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 1998 for operating leases were $974,259 in the governmental funds and $22,902 in the proprietary funds. Of these costs, $124,287 in the governmental funds and $20,456 in the proprietary funds were interfund operating leases for office space.
Back to 1998 Financial Report