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CITY OF PARIS, TEXAS
<br />Notes to Financial Statements (Continued)
<br />September 30, 2025
<br />II. Reconciliat on,of_Government-Wide,and Fund Financial, Statements (Continued)
<br />A. Explanation of Certain Differences Between the Governmental Fund Balance Sheet and the Government -
<br />Wide Statement of Net Position (Continued)
<br />Another element of that reconciliation explains that "long-term liabilities, including bonds payable and accrued
<br />interest, are not due and payable in the current period and, therefore, are not reported in the funds." The details
<br />of this $42,412,501 difference are as follows:
<br />Bonds Payable
<br />Plus: Premiums on Bonds Payable (to be Amortized
<br />Over the Life of the Debt)
<br />Tax Notes Payable
<br />Financed Purchases
<br />Leases
<br />SBITAs
<br />Accrued Interest
<br />Compensated Absences
<br />Landfill Post -Closure Care Costs
<br />Net Adjustment to Reduce Fund Balance — Total Governmental Funds
<br />to Arrive at Net Position — Governmental Activities
<br />$ 28,430,000
<br />1,407,158
<br />4,190,000
<br />110,931
<br />393,992
<br />506,682
<br />410,082
<br />6,813,656
<br />_................ _.1.50.„q„ 00
<br />$ A2,41ZM
<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 reported as
<br />depreciation/amortization expense.” The details of this $4,069,775 difference are as follows:
<br />Capital Outlay $ 7,472,222
<br />Depreciation Expense .,(3,µ402m447)
<br />Net Adjustment to Increase Net Changes in Fund Balances -
<br />Total Governmental Funds to Arrive at Changes in Net Position
<br />Of Governmental Activities $ -4,009,.775.
<br />Another element of that reconciliation states that "the net effect of various miscellaneous transactions involving
<br />capital assets (i.e., sales, trade-ins, and donations) is to increase net position." The details of this $3,506,894
<br />difference are as follows:
<br />Donations of capital assets increase net position in the statement
<br />of activities, but do not appear in the governmental fund because
<br />they are not financial resources. $ 3,506,894
<br />Total Governmental Funds to Arrive at Changes in Net Position
<br />of Governmental Activities $ 3,506,894
<br />43
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