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URBAN RENEWAL AGENCY OF THE CITY OF EUGENE, OREGON <br /> <br />Notes to Basic Financial Statements <br /> <br />continued <br />(2) Reconciliation of Government-wide and Fund Financial Statements, continued <br /> <br />(A) Explanation of Certain Differences Between the Government-wide Statement of Activities and the <br />Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances <br /> <br />The Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of <br />Governmental Funds to the Statement of Activities is provided at Exhibit 5. The following are selected <br />elements of that reconciliation: <br /> <br />Governmental funds do not report expenditures for unpaid compensated absences, interest expense, or <br />arbitrage since they do not require the use of current financial resources. However, the Statement of <br />Activities reports such expenses when incurred, regardless of when settlement ultimately occurs. The <br />details of this $1,291 difference are as follows: <br /> <br />Accrued interest $ 1,291 <br /> <br />Capital outlays are reported as expenditures in governmental funds. However, the Statement of Activities <br />allocates the cost of capital outlays over their estimated useful lives as depreciation expense. The details <br />of this $2,979,181 difference are as follows: <br /> <br />Capital outlay $ 2,982,396 <br />Depreciation expense (3,216) <br /> Net adjustment $ 2,979,181 <br /> <br />(B) Explanation of Certain Differences Between the Government-wide Statement of Activities and the <br />Governmental Fund Statement of Revenues, Expenditures and Changes in Fund Balances <br /> <br />Governmental funds defer revenues that do not provide current financial resources. However, the <br />Statement of Activities recognizes such revenue at their net realizable value when earned, regardless of <br />when collected. The details of this $324,033 difference are as follows: <br /> <br />Change in unavailable revenue from the following sources: <br /> Property taxes receivable $ (137,012) <br /> Notes receivable (242,301) <br /> Subtotal (379,313) <br /> Change in the allowance for doubtful receivables 55,280 <br /> Net adjustment $ (324,033) <br /> <br />Proceeds from the issuance of long-term debt provide current financial resources to governmental funds <br />and are reported as revenues. In the same way, repayments of long-term debt use current financial <br />resources and are reported as expenditures in governmental funds. However, neither the receipt of debt <br />proceeds nor the payment of debt principal affect the Statement of Activities, but are reported as <br />increases and decreases in noncurrent liabilities in the Statement of Net Position. The details of this <br />$298,000 difference are as follows: <br /> <br />Principal payments: <br /> Tax increment bonds $ 298,000 <br /> <br /> <br />26 <br />December 10, 2018, Meeting - Item 3