2022 Comprehensive Annual Financial Report for Sarasota Coun

Sarasota County, Florida Notes to Financial Statements September 30, 2022 E. LEASES Leases as Lessee For the year ended September 30, 2022, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right-to-use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below. On October 1, 2021, the County implemented a 40-month lease as lessee for the use of waste water/sewage treatment facility. An initial lease liability was recorded in the amount of $233,428. As of year-end, the value of the lease liability is $163,603. The County is required to make monthly variable principal and interest payments of $5,864 the lease has an interest rate of 0.2980%. The value of the right-to-use asset as of year-end was $233,428 with accumulated amortization of $70,029. The County has two extension option(s), each for 120 months. On December 16, 2021, the County entered into a 48-month lease as lessee for the use of office and parking spaces. An initial lease liability was recorded in the amount of $4,007,074. As of year-end, the value of the lease liability is $3,226,554. The County is required to make monthly fixed payments of $83,333 the lease has an interest rate of 0.4350%. The value of the right-to-use asset as of year-end was $4,007,074 with accumulated amortization of $784,891. The County has a termination period of 6 months as of the lease commencement. On October 1, 2021, the County implemented a 17-month lease as lessee for the use of digital imaging system equipment. An initial lease liability was recorded in the amount of $5,178. As of year-end, the value of the lease liability is $1,524. The County is required to make monthly fixed payments of $305 the lease has an interest rate of 0.1930%. The value of the right-to-use asset as of year-end was $5,178 with accumulated amortization of $3,627. On October 1, 2021, the County implemented a 36- month shared facility lease as lessee for the use of district Fire Station No.1 and No.3. An initial lease liability was recorded in the amount of $181,535. As of year-end, the value of the lease liability is $122,960. The County is required to make monthly fixed payments of $4,916 the lease has an interest rate of 0.2980%. The value of the right-to-use asset as of year-end was $181,535 with accumulated amortization of $60,512. The County has 2 extension option(s), each for 12 months. On October 1, 2021, the County implemented a 46- month shared facility lease as lessee for the use of district Fire Station No.7. An initial lease liability was recorded in the amount of $68,440. As of year-end, the value of the lease liability is $50,678. The County is required to make monthly fixed payments of $1,500 the lease has an interest rate of 0.4350%. The value of the right-to-use asset as of year-end was $68,440 with accumulated amortization of $17,854. The County has 2 extension option(s), each for 12 months. On July 1, 2022, the County entered into a 60-month lease as lessee for the use of copy machine equipment. An initial lease liability was recorded in the amount of $1,854,738. As of year-end, the value of the lease liability is $1,763,520. The County is required to make monthly fixed payments of $32,601 the lease has an interest rate of 2.1860%. The value of the right-to-use asset as of year-end was $1,854,738 with accumulated amortization of $92,737. On October 1, 2021, the County implemented a 53-month lease as lessee for use of office space. An initial lease liability was recorded in the amount of $139,890. As of year-end, the value of the lease liability is $109,723. The County is required to make monthly fixed payments of $2,519 the lease has an interest rate of 0.4350%. The value of the right-to-use asset as of year-end was $139,890 with accumulated amortization of $31,673. The County has 2 extension option(s), each for 60 months. 112

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