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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 />$466,699 difference are as follows: <br />Compensated absences$(357,608) <br />Net OPEB obligation(193,518) <br />Accrued interest88,765 <br />Amortization of issuance costs(4,338) <br />Net adjustment$(466,699) <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 />$10,556,999 difference are as follows: <br />Capital outlay$28,617,017 <br />Depreciation expense(18,060,018) <br />Net adjustment$10,556,999 <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 $2,798,147 difference are <br />as follows: <br />Debt issued: <br /> Issuance of general obligation bonds$(20,004,606) <br /> Issuance of notes payable(1,777,000) <br />(21,781,606) <br />Principal payments: <br /> General obligation debt23,449,164 <br /> Certificates of participation215,000 <br /> Limited tax bonds198,589 <br /> Tax increment bonds717,000 <br />24,579,753 <br />Net adjustment$2,798,147 <br />Transfers of capital assets are often made between proprietary funds and governmental funds when the use of <br />an asset changes. Transfers of liabilities are sometimes made between proprietary funds and governmental <br />funds when the fund responsible for repayment changes. Such transfers will provide or use economic <br />resources in proprietary funds, but may not necessarily provide or use spendable financial resources in <br />governmental funds. <br />Transfer of governmental <br /> capital assets to proprietary funds$(1,769,385) <br />47 <br />