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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:
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