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CITY OF EUGENE, OREGON
<br />Notes to Basic Financial Statements
<br />(5) Other Information, continued
<br />(H) Accounting Standards Issued but not yet Adopted, continued
<br />Tax Abatement Disclosures
<br />GASB Statement No. 77, , was issued in August 2015. This Statement requires
<br />disclosure of tax abatement information about (1) a reporting government’s own tax abatement agreements and (2)
<br />those that are entered into by other governments and that reduce the reporting government’s tax revenues. The
<br />requirements of this Statement improve financial reporting by giving users of financial statements essential
<br />information that is not consistently or comprehensively reported to the public at present. Disclosure of information
<br />about the nature and magnitude of tax abatements will make these transactions more transparent to financial
<br />statement users. As a result, users will be better equipped to understand (1) how tax abatements affect a
<br />government’s future ability to raise resources and meet its financial obligations and (2) the impact those abatements
<br />have on a government’s financial position and economic condition. The requirements of this Statement are effective
<br />for financial statements for periods beginning after December 15, 2015. Earlier application is encouraged.
<br />(I) Change in Accounting Principle
<br />Based on the implementation of GASB Statements No. 68 and 71, the City restated the beginning net position for
<br />Governmental and Business-type Activities to recognize their proportionate share of the PERS defined benefit
<br />pension plan assets and deferred outflows of resources as of July 1, 2014. Net position has been restated as shown
<br />below.
<br />(J) Prior Period Adjustment
<br />With the change in accounting principle described above, the City recorded a prior period adjustment to allocate the
<br />Limited Tax Pension Bonds (bonds), net of deep discount amortization, and related interest payable to the
<br />Governmental and Business-type Activities. The Business-type funds’ internal balance was reduced to reflect their
<br />share of interest expense paid and accrued on the bonds that was excluded from the Internal Service Fund
<br />elimination in prior years. Net position has been restated as follows:
<br />GovernmentalBusiness-type
<br />activitiesactivitiesTotal
<br />Total net position, July 1, 2014$568,840,787282,037,861850,878,648
<br /> Change in accounting principle(99,174,005)(10,989,932)(110,163,937)
<br /> Prior period adjustment
<br /> Pension bonds10,788,918(10,788,918)0
<br /> Internal balances8,443,649(8,443,649)0
<br />Total prior period adjustments19,232,567(19,232,567)0
<br />Total net position, July 1, 2014, as restated$488,899,349251,815,362740,714,711
<br />(K) Subsequent Event
<br />On November 3, 2015, Eugene voters passed Measure 20-235, a $2.7 million five-year library local option levy.
<br />Funds from the levy will be used to expand library hours and increase programming. The estimated cost of the levy is
<br />$36 per year for the average property tax statement.
<br />80
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