04012008 Regular Meeting - Laserfiche WebLink

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2. 3. RECONCILIATION OF GOVERNMENT -WIDE AND FUND FINANCIAL STATEMENTS (Continued) Explanation of Certain Differences Between the Governmental Fund Statement of Revenue, Expenditures and Changes in Fund Balances and the Government -wide Statement of Activities (Continued) Another element of that reconciliation states, "The issuance of long -term debt (e.g., bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long -term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets." The details of this $30,936,164 difference are as follows: Debt issued or incurred: Issuance of general obligation bonds $ 3411901000 Deferred charge for bond issuance costs ( 874,497) Interest payable 8871150 Principal repayments: Capital lease financing ( 711489) General obligation debt ( 31195,000) Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 3019361164 Another element of that reconciliation states, "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." The details of this $295,984 difference are as follows: Compensated absences $ 2951984 Net adjustment to decrease net changes in fund balances - total governmental funds to arrive at changes in net assets of governmental activities $ 2951984 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY Budgetary Information The City Charter prescribes certain requirements for adoption of an annual operating budget by the City Council. The Council must have a public hearing on the budget and may not adopt the budget until after 14 days after the hearing. The budget is to be adopted at least 15 days before the beginning of the fiscal year to which it applies. (continued) 34