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CITY OF PARIS, TEXAS <br />Notes to Financial Statements (Continued) <br />September 30, 2020 <br />II. Reconciliation of Government -Wide and Fund Financial Statements <br />A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government - <br />Wide Statement of Net Position <br />The governmental fund balance sheet includes a reconciliation between fund balance — total governmental funds <br />and net position — governmental activities as reported in the government -wide statement of net position. One <br />element of that reconciliation explains that "capital assets used in governmental activities are not financial <br />resources and, therefore, are not reported in the funds." The details of this $41,127,102 are as follows: <br />Land <br />Construction in Progress <br />Buildings <br />Less: Accumulated Depreciation — Buildings <br />Improvements Other Than Buildings <br />Less: Accumulated Depreciation — Improvements Other Than Buildings <br />Machinery and Equipment <br />Less: Accumulated Depreciation — Machinery and Equipment <br />Infrastructure <br />Less: Accumulated Depreciation — Infrastructure <br />Net Adjustment to Increase Fund Balance — Total Governmental Funds <br />to Arrive at Net Position — Governmental Activities <br />$ 5,950,108 <br />6,664,407 <br />20,525,627 <br />(10,028,641) <br />6,601,672 <br />(3,937,205) <br />22,317,003 <br />(18,532,486) <br />46,013,892 <br />(34,447,275) <br />Another element of that reconciliation explains that "long-term liabilities, including bonds payable, are not due <br />and payable in the current period and, therefore, are not reported in the funds." The details of this $15,443,940 <br />difference are as follows: <br />Bonds Payable $ 12,975,000 <br />Plus: Premiums on Bonds Payable (to be Amortized <br />Over the Life of the Debt) 122,856 <br />Capital Lease 950,526 <br />Accrued Interest 127,054 <br />Compensated Absences 1,118,504 <br />Landfill Post -Closure Care Costs 150,000 <br />Net Adjustment to Reduce Fund Balance — Total Governmental Funds <br />to Arrive at Net Position — Governmental Activities S 15.443.940 <br />B. Explanation of Certain Differences Between the Governmental Fund Statement of Revenues, Expenditures, <br />and Changes in Fund Balances and the Government -Wide Statement of Activities <br />The governmental fund statement of revenues, expenditures, and changes in fund balances includes a <br />reconciliation between net changes in fund balances — total governmental funds and changes in net position of <br />governmental activities as reported in the government -wide statement of activities. One element of that <br />reconciliation explains that "governmental funds report capital outlays as expenditures. However, in the <br />statement of activities, the cost of those assets is allocated over their estimated useful lives and <br />reported as depreciation expense." The details of this $2,663,451 difference are as follows: <br />35 <br />