WEST PALM BEACH DOWNTOWN DEVELOPMENT AUTHORITY

Notes To Financial Statements

September 30, 2022

NOTE H – OTHER POSTEMPLOYMENT BENEFITS (Continued)

OPEB Expense, Deferred Outflows of Resources, and Deferred Inflows of Resources Related to OPEB (Continued)

Amounts reported as deferred outflows of resources and deferred inflows of resources will be recognized in OPEB expense as follows:

NOTE I – LEASES

Lessee Lease – Office Space

300 Clematis: The DDA leases office space under a non-cancellable lease agreement. The DDA entered into an initial 10-year lease for new office space in May 2017 with lease payments commencing in March 2018 paid on a monthly basis The lease is set to expire in February 2028 and may be renewed for three additional five-year terms The first additional five-year term lease payments are based on a 3% increase from the previous year The second and third additional five-year term lease payments are based on the current fair market rental for similar premises in similar vicinitiesatthecommencementoftheapplicablerenewalterm.Sincetherentamountsforthesecondandthirdrenewal options cannot be reasonably determined at this time, these renewal periods are excluded from the lease term The discount rate was 4% using the DDA’s estimated incremental borrowing rate

Annual lease requirements are as follows: