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QTY OF LINO LAKES, MINNESOTA
<br />RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
<br />C1.3ANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVmES
<br />Year Ended December 31, 2008
<br />Net Change in Fund Balances -Total Governmental Funds S (3,004,990)
<br />Amounts reported for gone unental activities in the statement of actvisies are different because:
<br />Governmental fends report capital outlays as expenditures. However, in the
<br />statement of activities, assets are capitalized and the cost is allocated over their
<br />estimated useful lives and reported as depreciation expense.
<br />Capital outlays S 926,8.45
<br />Capital contributions to business -type funds (961,434)
<br />Crain on disposal of capital asses 12,512
<br />Proceeds from sales of capital assets (13,750)
<br />Depreciation expense (2,764,145) (2,799,972)
<br />The govemmental funds report bond proceeds as financing sources, while repayment
<br />of bond principal is repored as an expenditure. In the statement of net assets,
<br />however, issuing debt increases long -term liabilities and does not affect the statement
<br />of activities and repayment of principal reduces the liability. Also, governmental
<br />funds report the effect of issuance costs, premiums aril discounts when debt is first
<br />issued, whereas these amounts are deferred and amortized in the statement of
<br />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
<br />accrues, regardless of when it is due. The net effect of these differences in the
<br />treatment of general obligation bonds and related items is as follows:
<br />Issuance of equipment ccnificates (209,000)
<br />Repayment of bond principal 1,749,000
<br />Change in accrued interest expense for general obligation bonds 33,164
<br />Amortization of bond issuance costs (21,146)
<br />Amortization of bond premium 19,120
<br />Amortization of bond discount (2,867) 1,568,271
<br />Delinquent and deferred property taxes and special assessments receivable will be
<br />collected subsequent to year -end, but are not available soon enough to pay for the
<br />ctzrent period's expenditures and, therefore, are deferred in the governmental funds.
<br />Deferred revenue - December 31, 2007 9,606,192
<br />Deferred revenue - December 31, 2008 9,565,856 (40,336)
<br />In the statement of activities, compensated absences and other post employment
<br />benefits are measured by the amounts earned during the year. In the governmental
<br />funds, however, expenditures for these items are measured by the amount of financial
<br />resources used (essentially, the amounts actually paid). During fiscal year 2008,
<br />compensated absence payable and other post employment benefns payable increase.'.
<br />Change in Net Assets of Governmental Activities
<br />The =vomparryi g'sarts are an t augtal port of them basic financial smaanm.
<br />(42,721)
<br />S (4,319,218)
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