Executive/Council Action Form (ECAF)
ITEM TITLE:
Title
Ordinance 23-141, related to the 2023 Budget; making an emergency appropriation in General Fund 002 to provide expenditure authority for unanticipated governmental fund lease costs
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DEPARTMENT: Finance
ORIGINATOR: Vanessa de Salome’
EXECUTIVE RECOMMENDATION: Approved by Ken Klein 12/14/23
PURPOSE: Provide appropriation authority for unanticipated costs associated with governmental fund leases approved during 2023
BACKGROUND: The Governmental Accounting Standards Board (GASB) Statement Number 87 Summary states the following: “The objective of this Statement is to better meet the information needs of financial statement users by improving accounting and financial reporting for leases by governments. This Statement increases the usefulness of government’ financial statements by requiring recognition of certain lease assets and liabilities for leases that previously were classified as operating leases and recognized as inflows of resources or outflows of resources based on the payment provisions of the contract. It establishes a single model for lease accounting based on the foundational principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources, thereby enhancing the relevance and consistency of information about governments’ leasing activities.” This GASB Statement requires revenue and expenditure entries to properly account for the leases in our financial recordkeeping. The 3 affected 2023 leases are: Human Services Department in General Fund 002 for $377,246.87, the Sheriff’s Office in General Fund 002 for $144,945.03, and the Auditor’s Office in General Fund 002 for $120,759.32
FISCAL IMPLICATIONS:
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EXPEND: FUND, AGY, ORG, ACTY, OBJ, AU |
CURRENT YR |
2ND YR |
1ST 6 YRS |
|
002.5047306601 Lease Capital Outlay |
$377,246.87 |
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|
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002.5301136601 Lease Capital Outlay |
$144,945.03 |
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|
|
002.5114856601 Lease Capital Outlay |
$120,759.32 |
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|
|
TOTAL |
$642,951.22 |
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|
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REVENUE: FUND, AGY, ORG, REV, SOURCE |
CURRENT YR |
2ND YR |
1ST 6 YRS |
|
002.3047309150 Other Financing Source-Lease |
$377,246.87 |
|
|
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002.3301139150 Other Financing Source-Lease |
$144,945.03 |
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|
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002.3114859150 Other Financing Source-Lease |
$120,759.32 |
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|
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TOTAL |
$642,951.22 |
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DEPARTMENT FISCAL IMPACT NOTES: Click or tap here to enter text.
CONTRACT INFORMATION:
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AMOUNT |
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AMENDMENT |
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CONTRACT# |
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AMOUNT |
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Contract Period
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ORIGINAL |
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AMENDMENT |
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OTHER DEPARTMENTAL REVIEW/COMMENTS: Reviewed/approved by Finance - Nathan Kennedy 12/14/23