Fort Walton Beach Council agenda — 03-19-12--special--audit — reading text

Packet Pg.:89  3. 1. a City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 12 - OPERATING LEASES ( CONTINUED) Lessor ( Continued) Future minimum lease payments are as follows: Governmental Business -Type Activities Year Ending September 30 Activities Utilities Golf S 228, 207 2013 2014 222, 098 16, 380 16, 871 97, 283 97, 283 224, 571 20152016 231, 199 17, 377 17, 898 96, 906 96,906 2017 238. 056 18, 435 99, 425 Total minimum lease paytnents 1, 144. 131 $ 86. 961 $ 487. 803 Lessee 0N The City leases golf course equipment in the Golf Fund through operating leases with a finance company. ' The lease term began July 1, 2009, and terminates January 1, 2013. During 2011, a new operating lease was signed for additional equipment. The new lease N term began April 1, 2011, and terminates March 31, 2015. Monthly lease paymeuts are 9, 740 per month. Lease expense for the year ending September 30, 2012, was $ 116,878. Future minimum lease payments are as follows: Business -Type Activities Year Ending September 30 Golf 2013 $ 30, 541 2014 762 2015 881 Total , imniuni lease payments $ 33, 184 NOTE 13 - CAPITAL LEASES The City has entered into a lease agreement as lessee for financing the acquisition of certain golf system equipment. The lease agreement qualifies as a capital lease for accounting purposes as a result of the transfer of title or bargain purchase option and. therefore, has been recorded at the present value of the future minimum lease payments as of the inception date in the Golf Fund. 64 Packet Pg"  3.3. t.t. aa City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 NOTE 13 - CAPITAL LEASES ( CONTINUED) The assets acquired through capital leases are as follows: Business -Type Activities Assets Golf Golf lawn maintenance equipment $ 248, 589 Accumulated depreciation ( 236, 760) Net assets acquired by lease $ 12. 429 The future minimum lease obligations and net present value of these minimum lease payments as of September 30, 2012, are as follows: Business -Type Activities Year Ending September 30 Golf 2013 $ 13. 537 Total minimum lease payments — 13, 537 Less amount representing interest ( 79) Present value of minimum lease payments $ 13, 458 NOTE 14 - LONG -TERM DEBT Chanees in Lone -Term Debt Liabilities The following is a summary of changes in long -term debt liabilities of the City for the year ended September 30, 2012: Beginning Ending on, V, uin Balance Additions Reductions Balance One Year Governmental Activities Capital improccmrnt revenue bonds Series 2001 4615 -000 145. 000) 4. 470. 000 150,400 Las deferred amounts for issuance discount 44 035) 2, 179 41. 856) Capital impros ement re,, -nuc note Series 2011 728. 480 66. 684) 661, 796 68. 400 Cnm. ensated absencev 663 625 505. 235 461, 419) 707. 441 176. 860 Total Governmental Activities L 5961070 505. 235 670924) 5. 797381 395.260 6565 9191  F31. City of Fort Walton Beach, Florida NOTES TO FINANCIAL STATEMENTS September 30, 2012 00 a NOTE 14 - LONG -TERM DEBT ( CONTINUED) m Chances in Lone -Term Debt Liabilities (Continued) m Due Within LL Beginning Ending Balance Additions Reductions Balance On, Ye., Business -Type Activities c Q Wiho system revenue bonds 10, 585. 000 $ - $ ( 270 000) 10. 315.000 280. 000 Series 2005 $ Less deferred amount, for issuance m 120728) - 5. 091 115. 037) discounts ( Capital improvement reveare note Series 1011 76. 586 - ( 15, 365) 61, 221 15. 759 sd 158347 ( 140. 651) 221122 55. 281 Compcnsatedohsenecs 203. 426 Capitalleascs 66, 119 - ( 51661) 13458 13, 458 p U 4$ ( 586) 473, 10. 495 764 364, 498 r Total Business -Type Activities . 10. 811 003 g 158347 0N Description of Lone -Term Debt Outstandill LL Current Long -Term Total ua GOVERNMENTAL ACTIVITIES Revenue Bonds 5, 740, 000 City of Fort Walton Beach, Florida, Capital Improvement Bonds, Series 2001, due in annual installments of 555, 000 to $ 350, 000 through 2031; interest at 2. 5 °.6 to 5. 0%. Available non -ad valorem revenues are pledged for payment of the bonds. Proceeds used for construction of certain capital improvements.