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CITY OF EUGENE, OREGON <br />Notes to Basic Financial Statements <br />(2) Reconciliation of Government-wide and Fund Financial Statements continued <br />(B) Explanation of Differences Between the Government-wide Statement of Activities and the Fund Statement of <br />Revenues, Expenditures, and Changes in Fund Balances, continued <br />Capital outlay is reported as expenditures in governmental funds. However, the Statement of Activities <br />allocates the cost of capital outlay over their estimated useful lives as depreciation expense. The details of this <br />$15,939,839 difference are as follows: <br />Capital outlay <br />Depreciation expense <br />Net adjustment <br />$ 31,039,391 <br />(15,099,552) <br />$ 15,939,839 <br />Repayments of long-term debt use current financial resources and are reported as expenditures in <br />governmental funds. The payment of debt principal affects the Statement of Activities and is reported as a <br />decrease in noncurrent liabilities in the Statement of Net Assets. The details of this $1,972,606 difference are <br />as follows: <br />Debt issued: <br />Issuance of general obligation bonds $ (5,200,000) <br />Principal payments: <br />General obligation debt 4,315,000 <br />Certificates of participation 2,310,000 <br />Limited tax bonds 207,946 <br />State assessment deferral loans 11,944 <br />Notes and contracts payable 327,716 <br />Net adjustment $ 1,972,606 <br />Transfers of capital assets are often made between proprietary funds and governmental funds when the use of <br />an asset changes. Transfers of liabilities are sometimes made between proprietary funds and governmental <br />funds -when the fund responsible for repayment changes. Such transfers will provide or use economic <br />resources in proprietary funds, but may not necessarily provide or use spendable financial resources in <br />governmental funds. <br />Transfer of governmental <br />capital assets to proprietary funds $ (2,796,057) <br />(3) Stewardship, Compliance, and Accountability <br />(A) Budgetary Information <br />The City Manager submits to the Budget Committee a proposed operating and capital budget a sufficient length <br />of time in advance to allow adoption of the budget prior to July 1. The operating and capital budget includes <br />proposed expenditures and the means of financing them. Public hearings are conducted to obtain taxpayer <br />comments. <br />continued <br />48 <br />