RESOLUTION NO. 22-58
Resolution Of The City Council Of The City Of Emeryville Establishing A Threshold For Reporting Leases In Accordance With Governmental Accounting Standards Board Statement No. 87
WHEREAS, the Emeryville City Council has an established policy of identifying and disclosing any liabilities of funds when the information is available; and WHEREAS, the City follows the reporting requirements as established by the Governmental Accounting Standards Board (GASB); and
WHEREAS, in June 2017, the GASB issued Statement No. 87 (GASB 87), Leases; and WHEREAS, in May 2020, the GASB issued Statement No. 95, Postponement of the Effective Dates of Certain Authoritative Guidance, which delayed GASB 87’s effective date by 18 months. This postponement now requires adoption of GASB 87 for all fiscal years beginning after June 15, 2021; and
WHEREAS, the City Council wishes to establish a threshold for reporting leases in accordance with GASB 87; now, therefore, be it
RESOLVED, that the City Council of the City of Emeryville hereby establishes a threshold for lease reporting in accordance with Governmental Accounting Standards 87, to be the lesser of $400,000 or 2.5 percent of any funds’ annual operating expenses.
ADOPTED, by the City Council of the City of Emeryville at a regular meeting held Tuesday, June 7, 2022, by the following vote:
AYES: 5
Mayor Bauters, Vice Mayor Medina and Council Members Donahue, Martinez and Welch
NOES: 0
ABSTAIN: 0
ABSENT: 0
MAYOR
ATTEST: APPROVED AS TO FORM:
CITY CLERK CITY ATTORNEY
DocuSign Envelope ID: D8E492A9-BE03-4B15-86D7-E3389757A41B Exhibit A ‐ City Leases
Fund Lease
Annual Lease
Payment Term Value Status
101 General Fund ECCL $1 66 years $ 66 Not subject to GASB 87 ‐ Operating
and Maintenance costs are not
applicable to GASB 87
101 General Fund Gilman Fields $ 15,000 25 years $ 375,000 Not subject to GASB 87 ‐ Based
upon 1. limit proposed and 2.
materiality to General Fund
101 General Fund Bridgecourt $ 25,000 7 years $ 175,000 Being Terminated in June 2022,
Not subject to GASB 87
101 General Fund Copiers $ 6,450
Month to
Month $ 77,400
Not subject to GASB 87 ‐ Based
upon 1. limit proposed, 2.
currently month to month and 3.
materiality to General Fund
City of Emeryville Leases
Fund are most likely to hold leases. Materiality as determined by our external auditors is 2.5% of any Fund's expenditure.
The General Fund's materiality limit based upon the current budget is over $1.1 million and the Sewer Fund's materiality level in just over $400,000. Staff is therfore, proposing a $400,000 minimum threshold for the City. Should any other Fund in the future obtain a lease, staff will need to review the materiality level of any fund with a lease to ensure compliance with GASB 87.
DocuSign Envelope ID: D8E492A9-BE03-4B15-86D7-E3389757A41B