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Exhibit 5 <br />City of Eugene, Oregon <br />Reconciliation of the Statement of Revenues, Expenditures, and Changes <br /> in Fund Balances of Governmental Funds to the Statement of Activities <br />For the fiscal year ended June 30, 2012 <br />(amounts in dollars) <br />Net change in fund balances - total governmental funds(3,062,366) <br />Amounts reported for governmental activities in the statement of activities are <br /> different because: <br />Governmental funds defer revenues that do not provide current financial resources. <br /> However, the Statement of Activities recognizes such revenues at their net realizable value <br /> when earned, regardless of when received.3,215,549 <br />Donations of capital assets are reported as capital contributions in the Statement of <br /> Activities, but do not appear in the governmental funds because they are not financial <br /> resources. In addition, the Statement of Activities reports gains and losses arising from <br /> the disposal of existing capital assets, while governmental funds do not.778,221 <br />Governmental funds do not report expenditures for unpaid compensated absences, interest <br /> expense, or arbitrage since they do not require the use of current financial resources. <br /> However, the Statement of Activities reports such expenses when incurred, regardless of <br /> when settlement ultimately occurs.(466,699) <br />Capital outlay is reported as expenditures in governmental funds. However, the <br /> Statement of Activities allocates the cost of capital outlays over their estimated useful <br /> lives as depreciation expense.10,556,999 <br />Proceeds from the issuance of long-term debt provide current financial resources to governmental <br /> funds and are reported as revenues. In the same way, repayments of long-term debt use <br /> current financial resources and are reported as expenditures in governmental funds. However, neither <br /> the receipt of debt proceeds nor the payment of debt principal affect the Statement of Activities, <br /> but are reported as increases and decreases in noncurrent liabilities in the Statement of Net Assets.2,798,147 <br />Transfers of capital assets are often made between proprietary funds and governmental funds when the use <br /> of an asset changes. Transfers of liabilities are sometimes made between proprietary funds and <br /> governmental funds when the fund responsible for repayment changes. Such transfers will provide or use <br /> economic resources in proprietary funds, but may not necessarily provide or use spendable financial <br /> resources in governmental funds.(1,769,385) <br />Internal service funds are used by management to charge the costs of certain activities, <br /> such as insurance, facilities, and fleet services to individual funds. The net revenue <br /> (expense) of internal service funds is reported with governmental activities.1,069,022 <br />Change in net assets of governmental activities13,119,488 <br />The accompanying notes are an integral part of the financial statements. <br />27 <br />