2011/2012 audited annual accounts - Falkirk Council

FALKIRK COUNCIL
NOTES TO THE CORE FINANCIAL STATEMENTS
(ii) Operating Leases
The Council has acquired several properties by entering into operating leases.
The future minimum lease payments due under non-cancellable leases in future years are:
31 March 2011 31 March 2012
£’000 £’000
Not later than one year 2,276 2,469
Later than one year and not later than 5 years 8,491 9,917
Later than five years 4,938 3,465
TOTAL 15,705 15,851
The total of future minimum sub-lease payments expected to be received as at 31 March 2012 is £2.782m (£2.409m as
at 31 March 2011).
The expenditure charged to Council Services in the Comprehensive Income and Expenditure Statement during the
year in relation to these leases was:
31 March 2011 31 March 2012
£’000 £’000
Minimum lease payments 2,273 2,382
Contingent rents 54 38
(Sub-lease payments receivable) (647) (932)
TOTAL 1,680 1,488
b) Council as Lessor
(i) Finance Leases
The Council leases out Northfield Quarry to Tillicoultry Quarries Ltd on a finance lease with a remaining term of 16
years.
The Council has a gross investment in the lease, made up of the minimum lease payments expected to be received
over the remaining term. There is no residual value anticipated for the property when the lease comes to an end. The
minimum lease payments comprise settlement of the long-term debtor for the interest in the property acquired by the
lessee and finance income that will be earned by the Council in future years whilst the debtor remains outstanding.
The gross investment is made up of the following amounts:
31 March 2011 31 March 2012
£’000 £’000
Finance lease debtor (net present value of minimum lease
payments);
• Current 31 33
• Non-Current 1,027 994
Unearned finance income 771 697
Unguaranteed residual value of property - -
Gross investment in the lease 1,829 1,724
The gross investment in the lease and the minimum lease payments will be received over the following periods:
Gross Investment in the Lease Minimum Lease Payments
31 March 31 March 31 March 31 March
2011
2012
2011
2012
£’000 £’000 £’000 £’000
Not later than one year 105 105 31 33
Later than one year and not later than 5 years 528 528 194 210
Later than five years 1,196 1,091 833 784
TOTAL 1,829 1,724 1,058 1,027
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