To: The Honorable Mayor and Board of Commissioners From: Jackie Huffman Subject: Approve Budget Amendment for the accounting treatment of FY 2017 financing and refinancings
Our original FY 2017 budget was adopted by the Town Board approving the financing of Police cars and related equipment, which has occurred. Additionally, the Town advance refunded the 2008 Bonds issued in September, 2016 saving $373,049 over the remaining twelve year term of the bonds.
Our auditors have performed interim fieldwork and have recommended that for this year and future years, the most technically accurate accounting treatment of leasing or financing is to budget the expense of purchasing the vehicles and paying off the previous bonds and balancing the budget with an offsetting revenue of debt financing of the same amount. This item has no impact to fund balance, merely more accurately creates a budget for financing the vehicles and refinancing the bonds.
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