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Re 6.1.B_- Page 175 gency of the City of Redwood City Reconciliation of the Governmental Funds Statement of Revenues, Expenditures and Changes in Fund Balances to the Government-Wide Statement of Activities and Changes in Net Assets For the year ended June 30, 2011 Net Change in Fund Balances - Total Governmental Funds $ (�61,7?�) Amounts reported for government�il �ctivities in the St�itement of Activities are ditferent l�ecause: Governmental funds report capit�l outlay as expenditures. In the stateinent of �ctivities, however, the cost of those assets is �llocated over their estimated useful lives as depreci�tion expense. Capital asset additions ?3,339 Proceeds froin disposal of capit�l �ssets �n�e reported �s revenues in the government�l funds, while the loss on disposal ot capital assets are reported as �an expense in the Government-Wide Financial Stateinents Proceeds li�om sale of capital �lssets (30) Loss on sale of capital assets (3,126,63�) Depreciation expense on c�lpit�l �ssets was reported in the Goveriunent-Wide Statement of Activities �n1d Chan� es in Net Assets, btit it did not require the use of current fin�incial resources. Therefore, depreci�tion expense was not reported �ls expenditures in governmental funds. (510,63�) Pevenues that have not met the revenue recognition criteria in the Fund Financial statements are recognized as revenue in the Governnlent-Wide Financi�al Stateinents. 65,�10 Governmental funds repar�t bond issuance costs as expenditures. In the Goveriunent-Wide st�itement of Net Assets, however, the cost of issuance is �ullortized over the life of the bond. Tlus �inount represents the annual �mlortization of the cost ot issu�ulce. (-}'7,'79�) Bond proceeds provide current financial resources to governmental funds, but issuing debt incre�lse long-term li�bilities in the statement of net �ssets. Pepayment of bond princip�al is �ln expenditure in the governinental hinds, Liut the rep�iyment reduces lon� terin lial�ilities in the statement of net assets. Principal rep�ayment 1,267,321 Anlrn�tization of preiniunl 30,771 Accreted interest on capital ��ppreci<�tion l�onds (1,599,5��) Interest expense on long-terin debt is reported in the Government-Wide St�teinent of Aclivities �nd Changes in Net Assets, but they do not reqLiiie the Lise ot curient financial resouices. Therefore, interest expense is not reported as expenditures in governmental tunds. This �unount represents the ch�nge h�om prior year. 19,661 Change in Net Assets of Governmental Activities $ (�,339,858) See accomp�ulynlg Notes to B�lsic Fnl�lncial Statements. 19