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NOTE 16 — OPERATING LEASE The City is the lessor of an operating lease. In February 2010, the City of Ramsey entered into a five-year agreement to lease approximately 2200 square feet of office space on the ground floor of the Ramsey Municipal Center to Anoka County for the operation of a license center. As part of the original lease, the tenant may extend the contract for three (3) five (5) year tennis. Anoka County authorized a five (5) year extension in March 2020. The cost of the leased spaced is included in the total municipal center building cost of $12,856,588, of which $3,600,099 has been depreciated to date. These amounts are recorded in the City's capital assets. The City of Ramsey collected $52,134 in lease revenue for the fiscal year ended December 31, 2020. The following is an estimate of the future lease payments: Year Ending December 31, Lease Payments 2021 $ 56,326 2022 59,538 2023 63,060 2024 66,911 January 1 -June 30, 2025 34,464 Total $ 280,299 Lease payments may increase each year based on the increase in the Consumer Price Index — U.S. City Averages for ALL Urban Consumers as published by the Bureau of Labor Statistics of the United States Department of Labor for Urban Wage Earners and Clerical Workers for All Items (CPI-W). NOTE 17 — SUBSEQUENT EVENTS In April 2021, the City approved a resolution teiniinating the joint powers fire protection agreement between the City and the City of Nowthen. As of April 26, 2021, the City and the City's Fire Chief shall no longer have operational control of fire and rescue operations within the boundary of the City ofNowthen. Such operational control of fire and rescue operations within the City of Nowthen shall be vested in the City of Nowthen and the City of Nowthen Fire Chief. 95