2018 City of Shakopee Comprehensive Annual Financial Report

CITY OF SHAKOPEE

RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES - GOVERNMENTAL FUNDS

For the Year Ended December 31, 2018

Net Change in Fund Balances - Governmental Funds

1,368,203 $

Amounts reported for governmental activities in the Statement of Activities are

Capital outlays are reported in governmental funds as expenditures. However, in the Statement of Activities, the cost of those assets is allocated over the estimated useful lives as depreciation expense. Capital Outlays

3,436,483 (6,012,600)

Depreciation Expense

(22,803)

Loss on Disposal of Capital Assets

3,810,132

Contributed Assets

Principal payments on long-term debt are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. Payments on captial leases are recognized as expenditures in the governmental funds but as an increase in the net position in the Statement of Activities. Interest on long-term debt in the Statement of Activities differs from the amount reported in the governmental funds because interest is recognized as an expenditure in the funds when it is due and thus requires use of current financial resources. In the Statement of Activities, however, interest expense is recognized as the interest accrues, regardless of when it is due.

1,995,000

18,788

32,550

Governmental funds report the effects of bond premiums when debt is first issued, whereas these amounts are deferred and amortized in the Statement of Activities

111,422

Certain revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds. Special Assessments Delinquent

25,451

(493,348)

Special Assessments Deferred

OPEB obligations are recognized when paid in the government funds but recognized when incurred in the Statement of Activities Delinquent receivables will be collected this year, but are not available soon enough to pay for the current period's expenditures and, therefore, are not revenues in the funds. Governmental funds recognized pension contributions as expenditures at the time of payment whereas the statement of activities factors in items related to pensions on a full accrual perspective. Pension Expense

(59,655)

6,928

174,855

Internal service funds are used by management to charge the costs of certain activities such as buildings, equipment, park assets and employee benefits to individual funds. (See Note 2.B.)

(117,244)

Change in Net Position - Governmental Activities

4,274,162 $

The Notes to the Financial Statements are an integral part of this statement.

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