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CITY OF LINO LAKES, MINNESOTA Statement 6
<br />RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
<br />CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVITIES
<br />Year Ended December 31, 2013
<br />Net Change in Fund Balances -Total Governmental Funds $ 53,472
<br />Amounts reported for governmental activities in the statement of activities are different because:
<br />Governmental funds report capital outlays as expenditures. However, in the statement of activities,
<br />assets are capitalized and the cost is allocated over their estimated useful lives and reported as
<br />depreciation expense.
<br />Capital outlays $ 1,306,334
<br />Loss on disposal of capital assets (159,650)
<br />Proceeds from sales of capital assets (16,727)
<br />Depreciation expense (2,909,547) (1,779,590)
<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. Also, governmental funds report the effect of premiums and
<br />discounts when debt is first issued, whereas these amounts are deferred and amortized in the
<br />statement of activities. Interest is recognized as an expenditure in the governmental funds when it
<br />is due. In the statement of activities, however, interest expense is recognized as it accrues,
<br />regardless of when it is due. The net effect of these differences in the treatment of general
<br />obligation bonds and related items is as follows:
<br />Issuance of bonds
<br />(615,000)
<br />Issuance of equipment certificates
<br />(193,000)
<br />Bond premium
<br />(6,558)
<br />Repayment of bond principal
<br />2,649,000
<br />Change in accrued interest expense for general obligation bonds
<br />38,046
<br />Write-off of bond issuance costs
<br />(219,206)
<br />Amortization of bond premium
<br />23,096
<br />Amortization of bond discount
<br />(2,469) 1,673,909
<br />Delinquent and noncurrent property taxes and special assessments receivable will be collected
<br />subsequent to year-end, but are not available soon enough to pay for the current period's
<br />expenditures and, therefore, are not available in the governmental funds.
<br />Unavailable resources - December 31, 2012 12,232,276
<br />Unavailable resources - December 31, 2013 10,961,595 (1,270,681)
<br />In the statement of activities, compensated absences and other post employment 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 (essentially,
<br />the amounts actually paid). During fiscal year 2013, compensated absence payable and other post
<br />employment benefits payable decreased. 13,888
<br />Change in Net Position of Governmental Activities $ (1,309,002)
<br />The accompanying notes are an integral part of these basic financial statements.
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