06-14-2021 Council Packet - Laserfiche WebLink

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CITY OF LINO LAKES, MINNESOTA RECONCILIATION OF THE STATEMENT OF REVENUES,Statement 6 EXPENDITURES AND CHANGES IN FUND BALANCE OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES For The Year Ended December 31, 2020 Net change in fund balance - total governmental funds (Statement 5)$1,896,595 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures. However, in the Statement of Activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense: Current expenditures capitalized 921,489 Capital outlay 6,387,441 Depreciation (3,114,147) Various other transactions involving capital assets increase (decrease) net position on the Statement of Activities, but are not reported in governmental funds because they do not provide (or use) current financial resources: Contributions of infrastructure from private sources 5,298,050 Contributions of infrastructure to business-type activities (4,109,805) Miscellaneous other differences related to capital assets (90,800) Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Change in delinquent taxes receivable 26,669 Change in delinquent special assessments receivable (17,293) Change in deferred special assessments receivable 306,382 The issuance of long-term debt provides current financial resources to governmental funds, while repayment of the principal of long-term debt consumes the current financial resources. Neither transaction, however, has any effect on net position. Also, governmental funds report the effects of bond premiums and discounts when the debt is first issued, whereas amounts are deferred and amortized over the life of the debt in the Statement of Activities. Bonds and notes issued, including bond premium (5,059,858) Repayment of principal 2,855,000 Amortization of bond premiums and discounts 50,020 Some expenses reported in the Statement of Activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. Expenses reported in the Statement of Activities include the effects of the changes in these expense accruals as follows: Change in accrued interest payable (153,945) Change in compensated absences payable (18,073) Change in OPEB liability and related deferred outflows and inflows of resources (27,210) Pension expense in governmental funds is measured by current year employee contributions. Pension expense in the Statement of Activities is measured by the change in the net pension liability and related deferred inflows and outflows of resources. This is the amount by which pension expense ($148,170) differed from pension contributions ($627,385).479,215 Change in net position of governmental activities (Statement 2)$5,629,730 The accompanying notes are an integral part of these financial statements. 40