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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 $244,266 difference are as follows:
<br />
<br />Change in unavailable revenue from the following sources:
<br /> Property taxes receivable $ (1,958,169)
<br /> Special assessments receivable 2,183,814
<br /> System development charges receivable 78,355
<br /> Municipal court receivables (187,809)
<br /> Subtotal 116,191
<br /> Change in the allowance for uncollectibles (360,457)
<br />Net adjustment $ (244,266)
<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 $17,296,168 difference are as follows:
<br />
<br />Donations of capital assets $ 17,514,168
<br />Sale of capital assets (218,000)
<br />Net adjustment $ 17,296,168
<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 $12,830,977 difference are as follows:
<br />
<br />Compensated absences $ (1,368,208)
<br />Net OPEB obligation (952,961)
<br />Net pension asset (liability)(8,265,721)
<br />Accrued interest (2,244,087)
<br />Net adjustment $ (12,830,977)
<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 $4,610,725
<br />difference are as follows:
<br />
<br />Capital outlay $ 27,092,822
<br />Depreciation expense (22,482,097)
<br />Net adjustment $ 4,610,725
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<br />December 9, 2019, Meeting - Item 2CCC Agenda - Page 90
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