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CITY OF EUGENE, OREGON
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<br />Notes to Basic Financial Statements
<br />
<br />continued
<br />(2) Reconciliation of Government-wide and Governmental Fund Financial Statements, continued
<br />
<br />(B) Explanation of Differences Between the Government-wide Statement of Activities and the Statement of Revenues,
<br />Expenditures, and Changes in Fund Balances
<br />
<br />The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental
<br />Funds to the Statement of Activities is provided at Exhibit 5. The following are selected elements of that
<br />reconciliation:
<br />
<br />Governmental funds defer revenues that do not provide current financial resources. However, the Statement of
<br />Activities recognizes such revenues at their net realizable value when earned, regardless of when received. The
<br />details of this $5,534,290 difference are as follows:
<br />
<br />Change in unavailable revenue from the following sources:
<br /> Property taxes receivable $ (4,794,963)
<br /> Special assessments receivable (815,567)
<br /> System development charges receivable (126,350)
<br /> Municipal court receivables 204,174
<br /> Subtotal (5,532,706)
<br /> Change in the allowance for uncollectibles (1,584)
<br />Net adjustment $(5,534,290)
<br />
<br />Donations of capital assets are reported as capital contributions in the Statement of Activities, but do not appear in
<br />the governmental funds because they are not financial resources. In addition, the Statement of Activities reports
<br />gains and losses arising from the disposal of existing capital assets, while governmental funds do not. The details of
<br />this $4,371,409 difference are as follows:
<br />
<br />Donations of capital assets $ 4,624,082
<br />Sale of capital assets (252,673)
<br />Net adjustment $4,371,409
<br />
<br />Governmental funds do not report expenditures for unpaid compensated absences, net pension and OPEB liabilities,
<br />interest expense, or arbitrage since they do not require the use of current financial resources. However, the
<br />Statement of Activities reports such expenses when incurred, regardless of when settlement ultimately occurs. The
<br />details of this $11,410,305 difference are as follows:
<br />
<br />Compensated absences $ (95,628)
<br />Net OPEB obligation 136,797
<br />Net pension asset (liability)(9,236,617)
<br />Accrued interest (2,214,857)
<br />Net adjustment $(11,410,305)
<br />
<br />Capital outlay is reported as expenditures in governmental funds. However, the Statement of Activities allocates the
<br />cost of capital outlay over their estimated useful lives as depreciation expense. The details of this $822,952
<br />difference are as follows:
<br />
<br />Capital outlay $ 21,500,860
<br />Depreciation expense (22,323,812)
<br />Net adjustment $(822,952)
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<br />December 10, 2018, Meeting - Item 2D
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