Meeting Type: BCC Regular Meeting
Meeting Date: 11/19/2024
Item Status: New
From: Beth Hodges, Budget Director; Dana Austin, Accounting Manager
Submitted by: Beth Hodges, Budget Director
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ITEM TITLE
Title
Amending Fiscal Year 2024 and Fiscal Year 2025 Budgets to Establish Capital Lease
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STAFF RECOMMENDATION
Recommendation
Take the following actions:
1) Adopt Resolution #2025-031 amending Fiscal Year 2024 Budget (Resolution #2023-186 and Resolution #2023-187, adopted on September 28, 2023) in order to both establish Lease Purchase Proceeds in the amount of $847,824.00 and reallocate $282,608.00 budgeted Capital Outlay - Computer to Lease Purchase Principal.
2) Adopt Resolution #2025-032 amending Fiscal Year 2025 Budget (Resolution #2024-158 and Resolution #2024-159, adopted on September 17, 2024) to reallocate $282,608.00 budgeted Capital Outlay - Computer to Lease Purchase Principal.
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BACKGROUND INFORMATION
Background: During both Fiscal Year 2024 and 2025 budgets, $282,000.00, per year, was budgeted for lease payments related to “Network Refresh” of outdated networking equipment and allocated to Capital Outlay - Computer (10051965.55800 and 10051103.55800, respectively). Since the adoption of these budgets, it has been discovered that the transaction will not be a simple lease, but rather a capital lease, as the items will become the property of the County. In order to properly account for the lease/purchase the following steps will need to be taken.
For Fiscal Year 2024 Lease Purchase Proceeds (100.13850) will be increased by $847,824.00 and will be offset by the increase of Capital Outlay - Computer (10051965.55800) in the same amount. This will establish the full value of lease/purchase asset(s). Also, for this fiscal year, the $282,000.00 of budgeted Capital Outlay - Computer, along with an additional $608.00 of unused budget, for a total of $282,608.00 will be reallocated to Lease Purchase Principal (30410304.56211). This will account for annual payment one (1) of three (3).
For Fiscal Year 2025 the $282,000.00 of budgeted Capital Outlay - Computer (10051103.55800), along with an additional $608.00 of unused budget, for a total of $282,608.00, will be reallocated to Lease Purchase Principal (30410304.56211) to account for the annual payment, which will be payment two (2) of three (3).
For Fiscal Year 2026, the $282,608.00 lease/purchase payment, will be added to the Lease/Debt Service Schedule for budgeting purposes, thus no other future action needed for annual payment three (3) of three (3).
Previous Commission action/date: September 28, 2023 - Adoption of FY 2024 Budget; September 17, 2024 - Adoption of FY 2025 Budget
FINANCIAL IMPACT
Total cost of recommendation: $847,824.00 Lease Purchase Proceeds
Budget line item(s) to be used: See Resolution #2025-031 and # 2025-032 for accounts.
If this is not a budgeted expenditure, does the recommendation create a need for funding? N/A
LEGAL IMPACT
Is legal review necessary for this staff recommendation and related documents?
N/A
Reviewed/approved by: N/A
Additional comments: N/A
ADVERTISING REQUIREMENTS
Is advertising required for this recommendation? N/A
If the proof of publication affidavit is not attached, list the reason: N/A
FOLLOW UP IMPLEMENTATION
For time-sensitive follow up, select deadline date for follow up: N/A
Individual(s) responsible for follow up: Administration, Finance, and Budget Staff
Action required (list contact persons/addresses if documents are to be mailed or emailed): Administration - upload Resolutions to BCAP; Finance - create journal entry to establish full value of lease/purchase asset(s) and make necessary transfers of funds; Budget - create budget entries for Resolutions #2025-031 and #2025-032.
Additional instructions/notes: N/A