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CITY OF ELK RIVER,MINNESOTA <br /> RECONCILIATION OF THE STATEMENT OF REVENUES,EXPENDITURES, <br /> AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS <br /> TO THE STATEMENT OF ACTIVITIES <br /> FOR THE YEAR ENDED DECEMBER 31,2017 <br /> NET CHANGE IN FUND BALANCES-TOTAL GOVERNMENTAL FUNDS $(9,221,717) <br /> Amounts reported for governmental activities in the statement of activities <br /> are different because <br /> 1. Governmental funds report capital outlays as expenditures. However,in the <br /> statement of activities,the cost of these assets is allocated over their estimated <br /> useful lives and reported as depreciation expense. This is the amount by <br /> hich depreciation expense exceeded capital outlays in the current period. <br /> Capital outlay $ 5,216,676 <br /> Capital contributions 221,720 <br /> Depreciation expense (5,329,081) 109,315 <br /> 2. 'evenues in the statement of activities that do not provide current financial <br /> r,sources are not reported as revenues in the governmental funds. <br /> Property taxes 2,550 <br /> Special assessments (204,885) <br /> Other revenue (167,092) (369,427) <br /> 3. e issuance of long-term debt provides current financial resources to <br /> g•vernmental funds,while the repayment of the principal of long-term debt <br /> consumes the current financial resources of governmental funds. Neither <br /> filli <br /> transaction,however,has any effect on net position. Also,governmental <br /> ds report the effect of premiums,discounts and similar items when debt <br /> i first issued,whereas these amounts are deferred and amortized in the <br /> statement of activities. The amounts below are the effects of these differences <br /> 4 the treatment of long-term debt and related items. <br /> Repayment of principal of long-term debt 10,675,000 <br /> Amortization of issuance premium 51,072 <br /> Amortization of deferred charge from refunding (36,265) <br /> Accrued interest payable 175,650 10,865,457 <br /> 4. S•me expenses reported in the statement of activities do not require use of <br /> c ent financial resources and,therefore,are not reported as expenditures <br /> i governmental funds. <br /> Compensated absences (60,608) <br /> Net OPEB obligation (41,399) (102,007) <br /> 5. •ng-term pension activity is not reported in governmental funds. (70,433) <br /> C • GE IN NET POSITION OF GOVERNMENTAL ACTIVITIES $ 1,211,188 <br /> The not-s to the financial statements are an integral part of this statement. <br /> III-13 <br /> 65 <br />