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CITY OF LINO LAKES, MINNESOTA <br />RECONCILIATION OF THE STATEMENT OF REVENUES, <br />EXPENDITURES AND CHANGES IN FUND BALANCE OF <br />GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES <br />For The Year Ended December 31, 2017 <br />Statement 6 <br />Net change in fund balance - total governmental funds (Statement 5) <br />($3,774,647) <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 <br />of Activities the cost of those assets is allocated over their estimated useful lives and <br />reported as depreciation expense: <br />Depreciation <br />(2,959,683) <br />Capital outlay <br />29152,848 <br />Capital outlay not capitalized <br />1189240 <br />Various other transactions involving capital assets increase (decrease) net position on <br />the Statement of Activities, but are not reported in governmental funds because they <br />do not provide (or use) current financial resources: <br />Contributions of infrastructure from private sources <br />2,380,713 <br />Contributions of infrastructure to business -type activities <br />(170,210) <br />Gain (loss) on disposal of capital assets <br />(65,306) <br />Revenues in the Statement of Activities that do not provide current financial resources <br />are not reported as revenues in the funds: <br />Change in delinquent taxes receivable <br />(18,770) <br />Change in delinquent special assessments receivable <br />5,570 <br />Change in deferred special assessments receivable <br />(544,874) <br />The issuance of long-term debt provides current financial resources to governmental <br />funds, while repayment of the principal of long-term debt consumes the current <br />financial resources of governmental funds. Neither transaction, however, has any <br />effect on net position. Also, governmental funds report the effects of bond premiums <br />and discounts when the debt is first issued, whereas amounts are deferred and amortized <br />over the life of the debt in the Statement of Activities. <br />Bonds and notes issued (311,000) <br />Repayment of principal 8,058,525 <br />Amortization of bond premiums and discounts 17,313 <br />Some expenses reported in the Statement of Activities do not require the use of current <br />financial resources and, therefore, are not reported as expenditures in governmental <br />funds. Expenses reported in the Statement of Activities include the effects of the <br />changes in these expense accruals as follows: <br />Change in accrued interest payable 103,819 <br />Change in compensated absences payable (34,493) <br />Change other post employment benefits liability and related deferred inflows of resources 483 <br />Pension expense in governmental funds is measured by current year employee <br />contributions. Pension expense in the Statement of Activities is measured by the change <br />in the net pension liability and related deferred inflows and outflows of resources. <br />This is the amount by which pension expense differed from pension contributions. (470,360) <br />Change in net position of governmental activities (Statement 2) $4,488,168 <br />The accompanying notes are an integral part of these financial statements. <br />40 <br />