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<br />CITY OF ELK RIVER, MINNESOTA <br /> <br />RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, ' <br />AND CHANGES IN FU1~TD BALANCES OF GOVERl~'MENTAL FUNDS <br />TO THE STATEMENT OF ACTIVITIES <br />YEAR ENDED DECEMBER 31, 2009 ' <br />NET CHANGE IN FUND BALANCES -TOTAL GOVERNMENTAL FiJNDS $ 710,537 ' <br />Amounts reported for governmental activities in the statement of activities are different because: <br /> ' <br />1. Governmental funds report capital outlays as expenditures. However, in the <br />statement of activities the cost of those assets is allocated over their estimated <br />useful lives and reported as depreciation expense. This is the amount by <br /> <br />which depreciation exceeded capital outlays in the current period. ' <br />Capital outlay <br />Depreciation expense $ 5,029,218 <br />(5,292,468) <br />(263,250) <br />2. The net effect of various miscellaneous transactions involving capital assets <br />including donations and disposals, which increase net assets. ' <br />Donations 24,650 <br />Disposals <br />Depreciation on disposals (240,309) <br />214 <br />552 <br />(1 <br />107) ' <br /> , , <br />3. Revenues in the statement of activities that do not provide current financial <br />resources are not reported as revenues in the governmental funds. ' <br />Property taxes 191,939 <br />Special assessments (858,010) <br /> <br />Notes receivable <br />(63,191) <br />(729,262) ' <br />4. The issuance of long-term debt provides current financial resources to governmental <br />funds, while the repayment of the principal of long-term debt consumes the current ' <br />fmancial resources of governmental funds. Neither transaction, however, has any <br />effect on net assets. This amount is the net effect of these differences in the <br />treatment of long-term debt and related items. ' <br />Issuance of long-term debt (2,074,311) <br />Repayment of principal of long-term debt 3,162,117 1,087,806 <br /> ' <br />5. Some expenses reported in the statement of activities do not require use of current <br />financial resources and, therefore, are not reported as expenditures in governmental funds. <br />Accrued interest payable 36,594 ' <br />Compensated absences 33,283 <br />Net OPEB obligation (3,324) 66,553 ' <br />CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES $ 871,277 <br /> <br /> ' <br />The notes to the financial statements are an integral part of this statement. <br />26 ' <br />