Acton-Boxborough Regional School District Notes to Basic Financial Statements Year Ended June 30, 2024
NOTE 5 – LEASE LIABILITIES
As of June 30, 2024, the District is a lessee under various lease agreements classified as long-term leases under Governmental Accounting Standards Board (GASB) Statement No. 87, "Leases." These leases pertain to the use of school busses for periods that extend beyond one year. These leases generally have terms of 5 years and require fixed annual payments. The leases include options for purchase at the end of the lease term, which the District does not intend to exercise. The lease agreements have been recorded at the present value of the future minimum lease payments. The discount rates applied to measure the lease liabilities range from .25 to .28%, which is the incremental borrowing rate of the District as of the lease commencement dates. The future minimum lease obligations and the net present value of these minimum lease payments as of June 30, 2024, were as follows:
Years ending June 30:
Principal
Interest
Total
2025……………………………………… $ 358,533 $
284,245$
642,778 608,650 608,650 163,084
2026……………………………………… 2027……………………………………… 2028………………………………………
434,619 535,626 163,084
174,031 73,024
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Totals………………………………………$ 1,491,862 $ 531,300$ 2,023,162 The following identifies the right to use assets recorded under the lease agreements along with the related accumulated depreciation:
Governmental Activities
Vehicles…………………………$ 1,936,485 Less: accumulated depreciation… (620,155)
Total…………………………… $ 1,316,330
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