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CITY OF LINO LAKES, MINNESOTA
<br />RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXPENDITURES, AND
<br />CHANGES IN FUND BALANCE TO THE STATEMENT OF ACTIVMES
<br />December 31, 2009
<br />Statement 6
<br />Net Change in Fund Balances -Total Governmental Funds $ 4,887,439
<br />Amounts reported for govemmental activities in the statement of activities are different because:
<br />Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets are
<br />capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense.
<br />Capital outlays
<br />Capital contributions to business -type funds
<br />Gain on disposal of capital assets
<br />Proceeds from sales of capital assets
<br />Depreciation expense
<br />The governmental funds report bond proceeds as financing sources, while repayment of bond principal is reported
<br />as an expenditure. In the statement of net assets, however, issuing debt increases long -term liabilities and does not
<br />affect the statement of activities and repayment of principal reduces the liability. Also, governmental funds report
<br />the effect of issuance costs, premiums and discounts when debt is first issued, whereas these amounts are deferred
<br />and amortized in the statement of activities. Interest is recognized as an expenditure in the governmental funds
<br />when it is due. In the statement of activities, however, interest expense is recognized as it accrues, regardless of
<br />when it is due. The net effect of these differences in the treatment of general obligation bonds and related items is
<br />as follows:
<br />$ 639,265
<br />(182,190)
<br />12,644
<br />(35,700)
<br />(2,879,683) (2,445,664)
<br />Issuance of note payable (4,260,000)
<br />Issuance of equipment certificates (336,000)
<br />Bond premium (11,142)
<br />Bond issuance costs 50,142
<br />Repayment of bond principal 1,908,000
<br />Change in accrued interest expense for general obligation bonds 22,324
<br />Amortization of bond issuance costs (22,704)
<br />Amortization of bond premium 19,246
<br />Amortization of bond discount (2,867) (2,633,001)
<br />Delinquent and deferred property taxes and special assessments receivable will be collected subsequent to year-
<br />end, but are not available soon enough to pay for the current period's expenditures and, therefore, are deferred in
<br />the governmental funds.
<br />Deferred revenue - December 31, 2008 9,565,856
<br />Deferred revenue - December 31, 2009
<br />9,358,924 (206,932)
<br />In the statement of activities, compensated absences and other post employment benefits are measured by the
<br />amounts earned during the year. In the governmental funds, however, expenditures for these items are measured
<br />by the amount of financial resources used (essentially, the amounts actually paid). During fiscal year 2009,
<br />compensated absence payable and other post employment benefits payable increased.
<br />Change in Net Assets of Governmental Activities
<br />The accompanying notes are an integral part of these basic financial statements.
<br />29
<br />5,507
<br />$ (392,651)
<br />
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