Title
Consideration of and action on an ordinance to amend the Fiscal Year 2022-2023 Emergency Medical Services Budget to recognize the present value of the future payments of the lease agreement with Stryker, LLC.
Body
Summary:
On September 22, 2022, the City Council of the City of Deer Park authorized a 10-year lease agreement with Stryker, LLC for advanced life support (ALS) equipment, including stretchers, power loads, and Lucas devices. Due to the Governmental Accounting Standards Board (GASB) new Statement No. 87 reporting requirements, the City is required to report the lease as an expenditure and other financing source for the present value of all future lease payments in the period the lease is initially recognized. The amount required to be recognized in FY 2022-2023 is $1,215,122.00. The effect of this entry to the Statement of Revenues, Expenditures, and Changes in Fund Balances nets to zero, therefore no loss is realized.
This reporting requirement has caused the Emergency Medical Services department to exceed its departmental budget appropriation, therefore a budget amendment is necessary. The additional appropriation would be funded by the unassigned fund balance of the General Fund, which is available for this purpose.
Fiscal/Budgetary Impact:
Add $1,215,122.00 to the Fiscal Year 2022-2023 budget for the Emergency Services Department (Account No. 010-312-49040, Machinery and Equipment), to be funded by the unassigned fund balance of the General Fund, which is available for this purpose.
Recommended action
Approve the ordinance amending the Fiscal Year 2022-2023 Budget for the Emergency Medical Services Department in the General Fund for the present value of the future payments of the lease agreement with Stryker, LLC.