2008 FINANCIAL STATEMENTS - Laserfiche WebLink

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CITY OFGEM LAKE, MINNESOTA RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES AND CHANGES --IN FUND:BALANCE TO THE *STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS YEAR ENDED DECEMBER 31,208 (WITH COMPARATIVE DATA FOR THE YEAR ENDED DECEMBER 31, 2007) 2008 2007 NET CHANGE IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS S 65,845 5 202,243 Amounts reported for governmental activities in the statement'cf aetfvities•are different because: Governmental funds report capital outlays as expenditures. However, in the statement of :activities, assets are :capitalized and the cost. is allocated:over their estimated useful lives and reported as depreciation expense. This is the. amount by .which capitaloutlays exceeded depreciation in the current period. Capital Outlays 596,516: Depreciation Expense 51,631 44,885 784,468 Delinquent and deterred property taxes and .special assessments receivable will.be collected subsequent to year-end, but are not. available soon enough to pay for the current peiiod's expenditures :and, therefore;. are deferred in the governmental funds. Deferred Revenue - December 31•, 200.7 565,476 Deferred: Reveriu.e - December3l, 2008 543,411 (22,065) (64,33.1) The governmental funds report bond proceeds as financing sources, white repayment of bond principal is reported as an expenditure. In the.statement.of net assets, however, issuing debt increases.fong-term liabilities and does not affect the statement of activities and repayment of principal reduces the liability.. Also, govemmental funds report the effect :af issuance. costs, premiums and discounts when debt. is first 'issued, whereas these amounts.are deterred and amortized in the statement of activities. Interest is recognized as art expenditure in the governmental funds when it is due. In the.statement of activities, however, interest expense is recognized as it accrues, regardless of when itisAue. The net effect ofthese differences in ihe.treatment of general obligation bonds and related items• is -as. follows: Repayment of Bond Principal 72,207 Change in.Accrued Interest Payable. d:ti05 A3nortizaW.n'of Bond Issue Costs (2:Q27)' Amortization.of Bond Discount (1..7.73) 72,212 (790,3�0)� CHANGE IN NET ASSETS OF GOVERNMENTAL.ACTIVITIES $ 160.877 $ 132,041 See accompanying' Notes to Basic Financial Statements. (1 0)