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CITY OF LITTLE CANADA, MINNESOTA
<br />RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND
<br />CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
<br />GOVERNMENTAL ACTIVITIES
<br />YEAR ENDED DECEMBER 31, 2017
<br />WITH COMPARATIVE TOTALS FOR YEAR ENDED DECEMBER 31, 2016
<br />
<br />
<br />
<br />See accompanying Notes to Basic Financial Statements.
<br />(34)
<br />
<br />2017 2016
<br />Net Change in Fund Balances-Total Governmental Funds 1,737,998$ (1,292,085)$
<br />Capital Outlays - Improvement Costs 2,710,019$
<br />Loss on Disposal of Capital Assets (35,892)
<br />Proceeds from the Sale of Capital Assets (74,101)
<br />Depreciation Expense (1,765,179) 834,847 4,530,014
<br />Amortization of Bond Premium 18,690$
<br />Repayment of Notes Payable 32,113
<br />Repayment of Bond Principal 590,000
<br />Change in Accrued Interest Expense 5,507 646,310 2,309,139
<br />
<br />Deferred Inflows of Resources - December 31, 2017 3,767,096$
<br />Deferred Inflows of Resources - December 31, 2016 3,797,347 (30,251) (111,744)
<br />64,577 (122,263)
<br />(8,993) 20,752
<br />Change in Net Position of Governmental Activities 3,244,488$ 5,333,813$
<br />Pension expenditures in the governmental funds are measured by current year employee
<br />contributions. Pension expenses on the statement of activities are measured by the change in
<br />net pension liability and the related deferred inflows and outflows of resources.
<br />In the statement of activities, compensated absences and other postemployment benefits are
<br />measured by the amounts earned during the year. In the governmental funds, however,
<br />expenditures for these items are measured by the amount of financial resources used
<br />(essentially, the amounts actually paid). During fiscal year 2017, compensated absence
<br />payable and other post employment benefits payable changed.
<br />Amounts reported for governmental activities in the statement of activities are different because:
<br />Governmental funds report capital outlays as expenditures and proceeds from the sale of
<br />capital assets as revenues. However, in the statement of activities, assets are capitalized and
<br />the cost is allocated over their estimated useful lives and reported as depreciation expense.
<br />This is the amount by which depreciation exceeded capital outlays in the current period.
<br />The governmental funds report bond proceeds as financing sources, while repayment of bond
<br />principal is reported as an expenditure. In the statement of net position, however, issuing debt
<br />increases long-term liabilities and does not affect the statement of activities and repayment of
<br />principal reduces the liability. Interest is recognized as an expenditure in the governmental
<br />funds when it is due. In the statement of activities, however, interest expense is recognized as
<br />it accrues, regardless of when it is due. The net effect of these differences in the treatment of
<br />general obligation bonds and related items is as follows:
<br />Delinquent and certain other property taxes and special assessments receivable will be
<br />collected subsequent to year-end, but are not available soon enough to pay for the current
<br />period’s expenditures and, therefore, are reported as deferred inflows of resources and
<br />excluded from revenues in the governmental funds.
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