Title
A Resolution Approving a New Lease Policy and Rescinding Resolution 16-1097.
Summary
The Governmental Accounting Standards Board issued a new standard (#87) that establishes a single model of lease accounting. The finance department is requesting to rescind resolution 16-1097 and the capital and operating lease policy it approved, so the newly developed policy can be adopted. This new policy, in accordance with the new standard, creates a new asset category and a capitalization threshold of $15,000. This threshold is defined as total lease payments over the life of the lease.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.**Request to Transfer Departmental Budget Dollars form must be attached**
____ Not budgeted requiring increase to account #___________ in the amount of $____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital - Departmental **Capital Purchase Worksheet form must be attached**
____ Budgeted under account #______________ for $_________ and described in budget as ________________________. Additional amount needed, if any: Increase in budget of $_________ OR, transfer of $________ from Account #____________ to Account #_____________**Request to Increase OR Request toTransfer Departmental Budget Dollars form must be attached**
____ Not Budgeted - account #____________ requires budget increase of $_____________.**Request to Increase Departmental Budget Dollars form must be attached**
Capital Project - **If requesting to start a project, a Capital Project Worksheet form must be attached**
In current year Capital Projects Plan:
_____ Yes, described as __________________________, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________.
_____ No, requesting an increase of $___________ to an already approved project titled ________________________ that is being tracked under Account No. ___________________.
Body
WHEREAS, on April 18, 2016 the City Council passed Resolution 16-1097 adopting a Policy for Capital and Operating Equipment Leases, and
WHEREAS, the Governmental Accounting Standards Board has issued a new standard causing that policy to no longer be applicable, and
WHEREAS, Finance has drafted a new lease policy in accordance with the new guidance.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Rescinds Resolution 16-1097 and the Policy for Capital and Operating Equipment Leases
SECTION 2: A Policy for Leases - GASB 87 is hearby adopted and a copy is attached and made a part of this resolution.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.