Comprehensive Annual Financial Report (CAFR) - Johnson City

CITY OF JOHNSON CITY, TENNESSEENOTES TO THE FINANCIAL STATEMENTSFor the Fiscal Year Ended June 30, 20114. DETAILED NOTES ON ALL FUNDS (CONTINUED):F. Long-Term Debt (continued):Capital Leases - Governmental ActivitiesDuring the fiscal year ended June 30, 2009, the City entered into a lease agreement for financing avehicle for Transportation Planning. The lease was entered into July 1, 2008 with minimum leasepayments of $23,000. Based on the value of the vehicle, there is no interest associated with thislease. Interest should have been imputed but would have been immaterial and was therefore, notnecessary. This lease is to be repaid over 72 months.Fiscal Year201220132014Present Value of Minimum Payments$$3,8403,8403,80011,480The City entered into a lease for an upgrade to computer equipment on January 1, 2009. Thepresent value of the minimum lease payments was $472,161 to be repaid over 48 months.Components of the equipment have two separate interest rates. Specifically, equipment with a costof $320,744 of the lease is financed at 3.58% and the remaining equipment with a value of$151,417 is financed at 4.65%. The future minimum iease obligations as of June 30, 2011 are asfollows:Fiscal Year2012 $ 125,478Less: Interest (12,268)Present Value of Minimum Payments $ 113,21097