Title
Request to transfer funds and memorialize capital lease transactions.
Summary
The IT department entered into a lease agreement for 5 copiers for the Police Department in December 2015 and 3 additional leases for copiers for General Government, Sports Tourism and the Environmental Department in April 2016. After review by the Finance Division, it was determined that these are capital leases. The Governmental Accounting Standards Board (GASB) requires all capital leases be recorded as a capital expense on the fund level statements and that they be recorded on the Government Wide Statements as a capital asset and lease payable. These lease payments were budgeted under general equipment maintenance and the funds need to be transferred to a capital lease account.
Budgetary Impact:
Non-Capital Item:
____ Budgeted under account #_______________ (discussion item)
____ Not budgeted, requesting transfer of $__________ from Account #______________ to Account #_____________.
____ Not budgeted requiring increase to account #___________ in the amount of $____________.
Capital - Departmental
__x__ Budgeted under account #__01-629-6040 for $19,448.42 . Needs to be transferred to Account #_01-629-7015__.
____ Not Budgeted - account #____________ requires budget increase of $_____________.
Capital Project - **THE PRE-PROJECT CHECKLIST AND BUDGET CHECKLIST MUST BE ATTACHED TO THIS FILE**
In current year Capital Projects Plan:
_____ Yes, planned amount $___________, requesting $_________ as total project estimate, including contingencies, under account #_________________
_____ No, requesting $___________ as total project estimate, including contingencies, under account #____________________
Body
WHEREAS, The IT Department entered into 4 lease agreements in December 2015 and April 2016, and
WHEREAS, Finance Division staff determined the leases to be capital leases, and
WHEREAS, the funds were budgeted under an operating account,
WHEREAS, to be in compliance with GASB Statement No. 62, the funds need to be transferred to a capital lease account.
NOW THEREFORE BE IT RESOLVED that the City Council of the City of Foley, Alabama, as follows:
SECTION 1: Memorialize the capital lease agreements entered into by the IT department and signed by the Mayor in December 2015 and April 2016.
SECTION 2: Approves the transfer of $19,448.42 from expense account # 01-629-6040 to account capital lease account# 01-629-7015.
SECTION 3: This Resolution shall become effective immediately upon its adoption as required by law.