NOTE 7 LEASES AND CAPITAL COMMITMENTS (CONTINUED)
Property Lease Agreements The MDTA has entered into multiple real property leases with private companies primarily for storage and vehicle parking. The initial terms vary, with initial terms ranging from 5 to 35 years. Similarly, the duration of the lease renewal periods vary from 1 year to 20 years. The MDTA has included these renewal periods in the lease term if it believes that are reasonably certain to be exercised. Certain leases provide for increases in future annual rental payments based on defined increases in the Consumer Price Index. The lease arrangements do not contain any material residual value guarantees. The MDTA utilized its incremental borrowing rate to discount the lease payment terms. The total amount of inflows of resources related to leases recognized in the current fiscal year for lease and interest revenue are $862 and $396, respectively. Future Principal and Interest Lease Receipts The net present value of the future minimum lease payments to be received as of June 30, 2024, were as follows:
Year Ended June 30, 2025 2026 2027 2028 2029
Principal
Interest
Total
$
576 622 634 638 580
$
384 367 348 329 311 1,334
$
960 989 982 967 891
2030-2034 2035-3039 2040-2044 2045-2049 2050-2054 2055-2057 Total
2,363 2,403 1,770 2,452 808 85 $ 12,932
3,697 3,369 2,437 2,814 855 89 $ 18,051
966 667 362 47 4
$
5,119
Capital Contracts As of June 30, 2024, the MDTA was committed for $881,005 of uncompleted construction and improvement contracts relating to various projects. Exclusive of that amount, the MDTA currently contemplates the expense, through 2030, of $5,094,937 for capital additions, improvements, and major rehabilitation.
68 | Maryland Transportation Authority | Notes to the Financial Statements ($ in thousands)
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