2012 Comprehensive Annual Financial Report - the City of Tukwila

CITY OF TUKWILA: 2012 CAFRBASIC FINANCIAL STATEMENTSCITY OF TUKWILA, WASHINGTONRECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES INFUND BALANCES OF GOVERNMENT FUNDS TO THE STATEMENT OF ACTIVITIESFOR THE YEAR ENDED DECEMBER 31, 2012Net change in fund balances per the Statement of Revenues, Expenditures, and Changes in Fund Balances $ (6,655,064)Amount reported as change in net position in the Statement of Activities are different because:Governmental funds report capital outlays as expenditures. However, in the statementof activities the cost of those assets is allocated over their estimated useful lives andreported as depreciation expense. In the current period, these amounts are:Capital Outlay 12,099,298Depreciation Expense (6,548,605)Excess of Capital Outlay Over Depreciation Expense 5,550,693The net pension asset (negative net pension obligation) amortization amount is not a financialresource and therefore not reported in the funds. 26,520The City has equity interests in two joint ventures. The equity interests for the provision of governmental (371,958)services are not current financial resources and therefore are not reported in the funds.Repayment of long-term debt is reported as an expenditure in governmental funds, but the repaymentreduces long-term liabilities in the statement of net assets. In the current year, these amountsconsist of:Bond Principal Retirement 2,290,091Amortization Expense 50,9712,341,063Internal service funds are used by management to charge the costs of certain activitiesto individual funds. The net revenue (expense) of certain internal service funds is reported withgovernmental activities. 17,488Because some revenues will not be collected for several months after the City's fiscal year ends,they are not considered "available" revenues in the government funds. Deferred revenuesdecreased by this amount this year. (280,533)Some expenses reported in the Statement of Activities do not require the use of currentfinancial resources and therefore are not reported as expenditures in governmental funds.These activities consist of:Decrease in Accrued Interest 10,251Increase in Compensated Absences (175,287)Increase in Unfunded Other Post Employment Benefits (790,163)Amortization of Cost of issuance (34,822)Decrease in inventory (167,010)Total Additional Expense (Increase) Decrease (1,157,030)Due from Component UnitLoan Principal 658,706Interest 10,408669,114Change in net assets on the Statement of Activities $ 140,293The notes to the financial statements are an integral part of this statement.39