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CITY OF GEM LAKE, MINNESOTA <br />RECONCILIATION.OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, <br />EXPENDITURES AND CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES <br />GOVERNMENTAL ACTIVITIES <br />YEAR ENDED DECEMBER.31., 201E <br />NET CHANGE IN FUND BALANCES - TQTAL GOVERNMENTAL -FUNDS $ (1,00.7,669). <br />Amounts reported. forgovernmental. activities in.the statement of activities <br />are different because: <br />Governmental funds report. capital outlays as: expenditures. However, in <br />the statement of activities, assets are capitalized and thecost is <br />allocated over their estimated. useful lives and reported as depreciation <` <br />expense, <br />Capital Outlays <br />$ 329;012;:. <br />Depreciation Expense <br />65,950) :.:;.. 203,053 <br />Delinquent and deferredproperty taxes and special assessments ..: ... <br />receivable will be collected subsequent to.year-end, but are <br />available soon enough to pay for the current period's expenditures .and; <br />therefore, are unavailable -resources in the 9:overnmental funds. <br />.Unavailable Resources - December.31., �015.:.: <br />550862 <br />Unavailable Resources -.Decemb.er.31, 2016`.,;:,. <br />503,088. {471774} <br />The governmental funds report bond proceeds as financing sources, <br />while.repayment of bond -principal is reported as an expenditure. In the <br />statement of.net pasition; however;. issuing del7Jncreases fang -term <br />liabilities and does not affeet:.the statement'of.activities: and repayment <br />of principal reduces.the liability;; Also, governmental funds report, the <br />effect premiums::an d ,d spounts when debt is first issued, whereas these <br />amounts are defermd and. amortized in .the statement of activities. <br />Interest::is" recognized as an.e�penditure in the. governmental funds <br />when it`is;,due. In the statement.9f activities, however, interest expense <br />is recogniz60:as it accrues., regardless of .when it is: due.. The net effect. <br />of these differences in the treatment of general obligationbonds and <br />related items is. as follows: <br />Issuance of Bands Payable <br />Repayment of Bond Principal <br />7451000. <br />Change.in Accrued interest Payable <br />6,323 <br />Amortization. of Bond ❑iscount <br />{5,744} 745,579 <br />CHANGE IN NET POSITION. OF GOVERNME..NTAL ACTIVITIES <br />$` {46,811) <br />See accompanying Notes to Basic Finan.dal.Siatemonts: <br />e;9} <br />