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CITY OF ELK RIVER
<br />RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
<br />CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
<br />GOVERNMENTAL ACTIVITIES
<br />YEAR ENDED DECEMBER 31, 2016
<br />Net Change in Fund Balances -Total Governmental Funds
<br />Amounts reported for governmental activities in the statement of activities are different because:
<br />Governmental funds report capital outlays as expenditures and proceeds from the sale of capital
<br />assets as revenues. However, in the statement of activities, assets are capitalized and the cost is
<br />allocated over their estimated useful lives and reported as depreciation expense. This is the
<br />amount by which depreciation exceeded capital outlays in the current period.
<br />Capital Outlays - Improvement Costs (Net of Proceeds)
<br />Gain on Disposal of Capital Assets
<br />Proceeds from the Sale of Capital Assets
<br />Capital Contributions
<br />Depreciation Expense
<br />The governmental funds report bond proceeds as financing sources, while repayment of bond
<br />principal is reported as an expenditure. In the statement of net position, however, issuing debt
<br />increases long-term liabilities and does not affect the statement of activities and repayment of
<br />principal reduces the liability. Interest is recognized as an expenditure in the governmental funds
<br />when it is due. In the statement of activities, however, interest expense is recognized as it
<br />accrues, regardless of when it is due. The net effect of these differences in the treatment of
<br />general obligation bonds and related items is as follows:
<br />Repayment of Principal on Long -Term Debt
<br />Amortization of Bond Premium
<br />Amortization of Deferred Charge on Refunding
<br />Change in Accrued Interest Payable
<br />Delinquent and certain other property taxes and special assessments receivable will be collected
<br />subsequent to year-end, but are not available soon enough to pay for the current period's
<br />expenditures and, therefore, are reported as deferred inflows of resources and excluded from
<br />revenues in the governmental funds. 1%,'0011111WIP,
<br />Deferred Inflows of Resources - December 31, 2015
<br />Deferred Inflows of Resources - December 31, 2016 _
<br />In the statement of activities, compensated absences and other postemployment benefits are
<br />measured by the amounts earned during the year. In the governmental funds, however,
<br />expenditures for these items are measured by the amount of financial resources used (essentially,
<br />the amounts actually paid). During fiscal year 2016, compensated absence payable and other
<br />post employment benefits payable changed.
<br />Pension expenses in the governmental funds are measured by current year employee
<br />contributions. Pension expenses on the statement of activities are measured by the change in net
<br />pension liability and the related deferred inflows and outflows of resources.
<br />Change in Net Position of Governmental Activities
<br />See accompanying Notes to Basic Financial Statements.
<br />(26)
<br />$ 2,270,879
<br />29,695
<br />(80,587)
<br />663,516
<br />(5,184, 403)
<br />5,100,000
<br />51,072
<br />(36,265)
<br />136,795
<br />$ (2,777,389)
<br />(2,300,900)
<br />5,251,602
<br />1,812,940
<br />1,354,889 (458, 051)
<br />(77, 968)
<br />(1,819,567)
<br />$ (2,182,273)
<br />
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