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CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements <br />(2) Reconciliation of Government-wide and Fund Financial Statements, continued <br />(B) Explanation of Differences Between the Government-wide Statement of Activities and the Fund Statement of <br />Revenues, Expenditures, and Changes in Fund Balances, continued <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 Activities <br />reports such expenses when incurred, regardless of when settlement ultimately occurs. The details of this <br />$232,513 difference are as follows: <br />Compensated absences$(269,039) <br />Net OPEB obligation79,703 <br />Arbitrage20,623 <br />Accrued interest51,971 <br />Amortization of issuance costs(115,771) <br />Net adjustment$(232,513) <br />Capital outlay is reported as expenditures in governmental funds. However, the Statement of Activities <br />allocates the cost of capital outlay over their estimated useful lives as depreciation expense. The details of this <br />$14,992,629 difference are as follows: <br />Capital outlay$31,408,990 <br />Depreciation expense(16,416,361) <br />Net adjustment$14,992,629 <br />Repayments of long-term debt use current financial resources and are reported as expenditures in <br />governmental funds. The payment of debt principal affects the Statement of Activities and is reported as a <br />decrease in noncurrent liabilities in the Statement of Net Assets. The details of this $7,155,206 difference are <br />as follows: <br />Debt issued: <br /> Issuance of general obligation bonds$(500,000) <br />Principal payments: <br /> General obligation debt$4,801,786 <br /> Certificates of participation2,560,000 <br /> Limited tax bonds119,101 <br /> Notes and contracts payable174,319 <br />Net adjustment$7,155,206 <br />Transfers of capital assets are often made between proprietary funds and governmental funds when the use of <br />an asset changes. Transfers of liabilities are sometimes made between proprietary funds and governmental <br />funds when the fund responsible for repayment changes. Such transfers will provide or use economic <br />resources in proprietary funds, but may not necessarily provide or use spendable financial resources in <br />governmental funds. <br />Transfer of governmental <br /> capital assets to proprietary funds$(2,335,690) <br />