13. Leases

City Council Meeting · 2026-04-28 · agenda_item

This notice concerns the City of Clermont's accounting policies for leases, specifically for noncancellable building leases where the City is the lessee. The city recognizes lease liabilities and lease assets on its financial statements for leases valued at $5,000 or more. The process involves calculating the present value of expected lease payments to determine the initial lease liability and lease asset. These assets are then amortized over the lease term. Key considerations include the discount rate, lease term, and lease payments, with management assessing extension options. This item is currently under review as part of the city's financial statement notes. While no direct construction work is outlined, this policy impacts how the city manages its property and financial obligations related to leased buildings, potentially influencing future real estate decisions and related service needs. Businesses involved in property management, real estate services, and financial consulting may find this information relevant for understanding the city's operational framework.

lease liability threshold

5000 $