STATEMENT OF NET ASSETS Governmental Business-type Activities Activities Total ASSETS Cash $ 263,797 $ 1,267,834 $ 1,531,631 Investments 17,862,776 998,958 18,861,734 Equity in pooled cash and investments 52,127,059 27,925,358 80,052,417 Receivables (net of allowance for uncollectibles): Interest 645,589 172,962 818,551 Taxes 356,408 10,580 366,988 Accounts 5,127,306 3,657,675 8,784,981 Sales taxes receivable 1,958,563-1,958,563 Special assessments receivable 167,627,966-167,627,966 Intergovernmental 3,584,460 168,933 3,753,393 Contract receivable 143,001-143,001 Loans receivable 6,842,034-6,842,034 Internal balances (1,374,017) 1,374,017 - Inventory - 159,248 159,248 Prepaid expenses 150,115 263,556 413,671 Property held for resale 1,046,498-1,046,498 Restricted assets: Equity in pooled cash & investments - 9,836,131 9,836,131 Investments - 10,600,110 10,600,110 Interest receivable - 5,715 5,715 Sales taxes receivable - 1,958,563 1,958,563 Prepaid expenses - 123,087 123,087 Unamortized debt costs 1,933,405 331,606 2,265,011 Net pension obligation asset 1,778,717-1,778,717 Capital assets (net of accumulated depreciation): Land 1,383,505 29,907,928 31,291,433 Construction in progress 842,533 6,785,678 7,628,211 Intangible - 500,000 500,000 Buildings 34,608,016 120,057,947 154,665,963 Improvements other than buildings 283,223 5,734,689 6,017,912 Machinery and equipment 7,617,024 12,537,202 20,154,226 Infrastructure 165,679,103 247,570,226 413,249,329 Total capital assets 210,413,404 423,093,670 633,507,074 Total assets 470,487,081 481,948,003 952,435,084 LIABILITIES Vouchers payable 6,771,500 2,405,399 9,176,899 Retainage payable 751,792 302,428 1,054,220 Accrued payroll 1,521,562 313,478 1,835,040 Accrued interest payable 2,172,492 216,546 2,389,038 Special assessments payable 327,648-327,648 Unearned revenue 6,708,165 1,705,930 8,414,095 Deposits 231,896 11,790 243,686 Claim reserves 657,918-657,918 Liabilities payable from restricted assets - 10,017,063 10,017,063 Noncurrent liabilities: Due within one year 17,576,079 704,327 18,280,406 Due in more than one year 219,183,847 65,495,662 284,679,509 Total liabilities 255,902,899 81,172,623 337,075,522 NET ASSETS Invested in capital assets, net of related debt 100,497,504 365,275,829 465,773,333 Restricted for: Debt service 91,621,656 1,906,433 93,528,089 Specific projects and programs 3,357,783-3,357,783 Capital improvements 11,469,742 10,600,110 22,069,852 Unrestricted 7,637,497 22,993,008 30,630,505 Total net assets $ 214,584,182 $ 400,775,380 $ 615,359,562 The notes to the financial statements are an integral part of this statement.
STATEMENT OF ACTIVITIES FOR THE YEAR ENDED Program Revenues Net (Expense) Revenue and Operating Capital Changes in Net Assets Charges for Grants and Grants and Governmental Business-type Functions/Programs Expenses Services Contributions Contributions Activities Activities Total Governmental activities: General government $ 9,636,548 $ 2,632,513 $ 197,673 $ - $ (6,806,362) $ - $ (6,806,362) Public safety 23,310,046 5,587,229 393,926 1,142,322 (16,186,569) - (16,186,569) Public works 35,070,333 5,497,488 660,952 38,388,803 9,476,910-9,476,910 Public health & welfare 6,671,796 2,258,421 2,095,476 - (2,317,899) - (2,317,899) Recreation & culture 5,257,930 731,817 184,856 185,309 (4,155,948) - (4,155,948) Urban redevelopment 5,330,190 4,483,915 1,439,467-593,192-593,192 Transportation 5,297,182 1,878,831 1,835,290 4,096,176 2,513,115-2,513,115 General support 1,297,392 - - - (1,297,392) - (1,297,392) Interest and fiscal charges 10,562,600 - - - (10,562,600) - (10,562,600) Total governmental activities 102,434,017 23,070,214 6,807,640 43,812,610 (28,743,553) - (28,743,553) Business-type activities: Municipal airport authority 5,630,173 5,295,396 3,000 1,849,235-1,517,458 1,517,458 Water 13,690,417 16,434,832 - - - 2,744,415 2,744,415 Wastewater 6,280,502 8,479,324 - - - 2,198,822 2,198,822 Storm sewer 2,963,669 1,434,027 - - - (1,529,642) (1,529,642) Solid waste 5,673,508 8,765,444 - - - 3,091,936 3,091,936 Fargodome 7,562,959 3,836,200 - - - (3,726,759) (3,726,759) Southeast Cass 66,919 49,002 - - - (17,917) (17,917) Vector control 367,989 579,482 - - - 211,493 211,493 Forestry 1,112,526 888,339 5,818 - - (218,369) (218,369) Total business-type activities 43,348,662 45,762,046 8,818 1,849,235-4,271,437 4,271,437 Total $ 145,782,679 $ 68,832,260 $ 6,816,458 $ 45,661,845 (28,743,553) 4,271,437 (24,472,116) The notes to the financial statements are an integral part of this statement. General revenues: Taxes: Property taxes 15,056,935 459,010 15,515,945 Sales taxes 14,462,645 9,696,521 24,159,166 Gross business receipts taxes 3,977,283-3,977,283 Other taxes 4,118,851-4,118,851 Unrestricted intergovernmental 2,619,532-2,619,532 Unrestricted investment earnings 5,559,410 2,543,953 8,103,363 Miscellaneous 222,665 30,831 253,496 Transfers (893,663) 893,663 - Total general revenues and transfers 45,123,658 13,623,978 58,747,636 Change in net assets 16,380,105 17,895,415 34,275,520 Net assets - beginning, as restated for governmental activities 198,204,077 382,879,965 581,084,042 Net assets - ending $ 214,584,182 $ 400,775,380 $ 615,359,562
Other Total Debt Infrastructure Governmental Governmental General Service Capital Projects Funds Funds ASSETS Cash $ 89,077 $ - $ 163,828 $ - $ 252,905 Investments - 17,862,776 - - 17,862,776 Equity in pooled cash & investments 13,728,396 15,951,940-18,411,601 48,091,937 Receivables (net of allowance for uncollectibles) Interest 240,166 289,617-94,250 624,033 Taxes 286,465 53,558-16,385 356,408 Accounts 2,784,280 31,957-2,277,396 5,093,633 Sales tax receivable - 1,958,563 - - 1,958,563 Special assessments - 167,137,452 349,377 141,137 167,627,966 Contracts - 143,001 - - 143,001 Intergovernmental 1,462,037-1,474,686 647,737 3,584,460 Due from other funds - 14,404,676-233,151 14,637,827 Loans 9,171 - - 6,832,863 6,842,034 Advances to other funds 1,480,497 - - - 1,480,497 Prepaid items 11,828 - - 7,350 19,178 Property held for resale - - - 1,046,498 1,046,498 Total assets $ 20,091,917 $ 217,833,540 $ 1,987,891 $ 29,708,368 $ 269,621,716 LIABILITIES AND FUND BALANCE Liabilities Vouchers payable $ 1,542,036 $ 74,023 $ 4,064,996 $ 1,090,177 $ 6,771,232 Contract retainage payable - - 635,384 116,408 751,792 Interest payable - 14,515 - - 14,515 Advances from other funds - - - 2,184,927 2,184,927 Due to other funds - - 14,403,987 408,742 14,812,729 Accrued payroll 1,509,451 - - 12,111 1,521,562 Special assessments payable - 84,426-243,222 327,648 Deferred revenue 2,130,092 161,219,868 1,844,713 8,714,298 173,908,971 Deposits 231,896 - - - 231,896 Total liabilities 5,413,475 161,392,832 20,949,080 12,769,885 200,525,272 Fund balance (deficit) Reserved for encumbrances 1,551,902 - - - 1,551,902 Reserved for advances 1,480,497 - - - 1,480,497 Reserved for prepaid items 11,828 - - 7,350 19,178 Reserved for debt retirement - 56,440,708 - - 56,440,708 Reserved for property held for resale - - - 1,046,498 1,046,498 Reserved for capital improvements - - - 10,665,813 10,665,813 Unreserved- designated for capital needs, reported in: Special revenue funds - - - 164,596 164,596 Unreserved- undesignated reported in: General fund 11,634,215 - - - 11,634,215 Special revenue funds - - - 6,460,459 6,460,459 Capital projects funds - - (18,961,189) (1,406,233) (20,367,422) Total fund balance (deficit) 14,678,442 56,440,708 (18,961,189) 16,938,483 69,096,444 Total liabilities and fund balance $ 20,091,917 $ 217,833,540 $ 1,987,891 $ 29,708,368 Amounts reported for governmental activities in the statement of net assets are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. 210,413,404 Other assets are not available to pay for current-period expenditures and, therefore, are either not recognized as a receivable or are deferred in the funds. 172,470,967 Internal service funds are used by management to charge the costs of liability and health insurance to individual funds. The assets and liabilities of the internal service funds are included in the governmental activities in the statement of net assets. 3,079,309 Long-term liabilities, including bonds payable, are not due and payable in the current period and, therefore, are not reported in the funds. (240,475,942) Net assets of governmental activities $ 214,584,182 The notes to the financial statements are an integral part of this statement. CITY OF FARGO, NORTH DAKOTA BALANCE SHEET GOVERNMENTAL FUNDS
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED Other Total Debt Infrastructure Governmental Governmental General Service Capital Projects Funds Funds REVENUES Taxes $ 17,000,963 $ 11,497,809 $ - $ 7,514,764 $ 36,013,536 Special assessments - 12,958,887 1,172,894 184,545 14,316,326 Licenses and permits 3,181,281 - - 12 3,181,293 Intergovernmental revenues 13,593,972-2,326,470 5,470,448 21,390,890 Charges for services 10,327,987 - - 1,373,812 11,701,799 Fines and forfeits 2,937,925 - - 108,507 3,046,432 Investment income 2,352,005 1,916,971 26,176 891,705 5,186,857 Special assessment interest - 7,697,117 - - 7,697,117 Miscellaneous revenues 275,747 13,388 219,698 5,438,659 5,947,492 Total revenues 49,669,880 34,084,172 3,745,238 20,982,452 108,481,742 EXPENDITURES Current General government 9,090,739 - - 135,436 9,226,175 Public safety 21,729,128 - - 1,374,451 23,103,579 Public works 7,621,242 521,618 19,342,312 727,093 28,212,265 Public health & welfare 6,760,003 - - 10,327 6,770,330 Recreation & culture 2,448,354 - - 2,313,894 4,762,248 Urban redevelopment 15,547 - - 5,308,490 5,324,037 Public transportation 3,047,125 - - 1,331,346 4,378,471 General support 1,301,094 - - - 1,301,094 Capital outlay 367,793-10,390,797 7,138,232 17,896,822 Debt service Principal - 18,191,725-3,792,638 21,984,363 Interest and fiscal charges - 10,006,749-233,942 10,240,691 Total expenditures 52,381,025 28,720,092 29,733,109 22,365,849 133,200,075 Excess (deficiency) of revenues over (under) expenditures (2,711,145) 5,364,080 (25,987,871) (1,383,397) (24,718,333) OTHER FINANCING SOURCES (USES) Transfers in 6,896,844 773,432 15,262,381 4,236,001 27,168,658 Transfers out (3,372,244) (7,660,060) (14,630,316) (2,399,701) (28,062,321) Loans issued - - - 3,825,000 3,825,000 Bonds issued - 6,988,190 19,286,810-26,275,000 Bond premium - 36,028 - - 36,028 Bond issuances used for refunding - (10,785,000) - - (10,785,000) Bond discount - (32,379) - - (32,379) Total other financing sources (uses) 3,524,600 (10,679,789) 19,918,875 5,661,300 18,424,986 Net change in fund balance 813,455 (5,315,709) (6,068,996) 4,277,903 (6,293,347) Fund balance (deficit) - beginning of year 13,864,987 61,756,417 (12,892,193) 12,660,580 75,389,791 Fund balance (deficit) - end of year $ 14,678,442 $ 56,440,708 $ (18,961,189) $ 16,938,483 $ 69,096,444 The notes to the financial statements are an integral part of this statement.
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED Amounts reported for governmental activities in the statement of activities (page 14) are different because: Net change in fund balances - total governmental funds (page 17) $ (6,293,347) Governmental funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives and reported as depreciation expense. 8,230,512 The net effect of various miscellaneous transactions involving capital assets (I.e. sales, trade-ins, and donations) is to decrease net assets. (11,885) Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. 11,226,043 The issuance of long-term debt (I.e. bonds, leases) provides current financial resources to governmental funds, while the repayment of the principal of long-term debt consumes the current financial resources of governmental funds. Neither transaction, however, has any effect on net assets. Also, governmental funds report the effect of issuance costs, premiums, discounts, and similar items when debt is first issued, whereas these amounts are deferred and amortized in the statement of activities. This amount is the net effect of these differences in the treatment of long-term debt and related items. 2,943,671 Some expenses reported in the statement of activities do not require the use of current financial resources and, therefore, are not reported as expenditures in governmental funds. (1,056,558) Internal service funds are used by management to charge the costs of health and liability insurance to individual funds. The net revenue of certain activities of internal service funds are reported with governmental activities. 1,341,669 Change in net assets of governmental activities (page 15) $ 16,380,105 The notes to the financial statements are an integral part of this statement.
GENERAL FUND STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE - BUDGET AND ACTUAL FOR THE YEAR ENDED Variance with Budgeted Amounts Final Budget Actual Positive Original Final Amounts (Negative) Revenues Taxes $ 16,855,500 $ 16,855,500 $ 17,000,963 $ 145,463 Licenses & permits 2,609,000 2,609,000 3,181,281 572,281 Intergovernmental revenues 12,294,985 16,904,065 13,593,972 (3,310,093) Charge for services 8,844,694 9,348,794 10,327,987 979,193 Fines and forfeits 3,226,500 3,226,500 2,937,925 (288,575) Investment income 2,270,000 2,270,000 2,352,005 82,005 Miscellaneous revenues 377,000 417,738 275,747 (141,991) Total revenues 46,477,679 51,631,597 49,669,880 (1,961,717) EXPENDITURES Current: General government 8,801,170 9,289,578 9,090,739 198,839 Public safety 21,324,670 22,152,033 21,729,128 422,905 Public works 5,906,494 7,681,978 7,621,242 60,736 Public health & welfare 6,668,357 6,872,319 6,760,003 112,316 Recreation & culture 2,488,378 2,489,805 2,448,354 41,451 Urban redevelopment - - 15,547 (15,547) Public transportation 2,786,739 2,758,146 3,047,125 (288,979) General support 853,342 1,273,094 1,301,094 (28,000) Capital outlay 2,840,000 3,618,982 367,793 3,251,189 Total expenditures 51,669,150 56,135,935 52,381,025 3,754,910 Excess (Deficiency) of Revenues Over (Under) Expenditures (5,191,471) (4,504,338) (2,711,145) 1,793,193 OTHER FINANCING SOURCES (USES) Transfers in 6,138,000 6,413,000 6,896,844 483,844 Transfers out (899,885) (3,112,905) (3,372,244) (259,339) Total other financing sources and uses 5,238,115 3,300,095 3,524,600 224,505 Net change in fund balances 46,644 (1,204,243) 813,455 2,017,698 Fund balance, beginning of year 13,864,987 13,864,987 13,864,987 - Fund balance, end of year $ 13,911,631 $ 12,660,744 $ 14,678,442 $ 2,017,698 The notes to the financial statements are an integral part of this statement.
STATEMENT OF NET ASSETS PROPRIETARY FUNDS Governmental Business-type activities - Enterprise Funds Activities - Other Internal Storm Solid Enterprise Service Airport Water Wastewater Sewer Waste FargoDome Funds Total Funds ASSETS Current assets Cash $ - $ 100 $ 50 $ - $ 300 $ 1,267,334 $ 50 $ 1,267,834 $ 10,892 Equity in pooled cash and Investments 6,942,087 10,319,244 4,402,519-1,277,129 4,548,448 435,931 27,925,358 4,035,122 Receivables (net of allowance for uncollectibles): Interest 41,853 58,733 33,388-6,613 29,900 2,475 172,962 21,556 Taxes 10,580 - - - - - - 10,580 - Accounts 511,772 721,725 1,222,964 82,356 612,852 404,385 101,621 3,657,675 33,673 Intergovernmental - - - - - 168,933-168,933 - Due from other funds - 1,421,153 - - - - - 1,421,153 - Advances to other funds - - - - 704,430 - - 704,430 - Inventory - 136,187 - - - 23,061-159,248 - Prepaid expenses - - - - - 263,556-263,556 130,937 Restricted equity in pooled cash and investments 652,398 3,394,914 1,311,381 - - 3,218,370-8,577,063 - Total current assets 8,158,690 16,052,056 6,970,302 82,356 2,601,324 9,923,987 540,077 44,328,792 4,232,180 Noncurrent assets Investments - 998,958 - - - - - 998,958 - Restricted assets Equity in pooled cash & investments 250,334 36,084 361,080 - - 611,570-1,259,068 - Investments - - - - - 10,600,110-10,600,110 - Interest receivable - 5,715 - - - - - 5,715 - Sales taxes receivable - - - - - 1,958,563-1,958,563 - Prepaid expenses 7,750 68,619 - - - 46,718-123,087 - Unamortized debt costs 79,478 133,851 - - - 118,277-331,606 - Capital assets Land 7,532,082 1,952,186 227,023 17,104,654 3,091,983 - - 29,907,928 - Construction in progress 2,031,130 - - 174,000 3,354,997 1,225,551-6,785,678 - Intangible - 500,000 - - - - - 500,000 - Buildings 13,219,335 64,180,690 24,354,781-1,660,465 57,752,331-161,167,602 - Improvements other than buildings 756,543 90,535 1,677,081 939,733 3,762,647 1,614,513-8,841,052 - Machinery and equipment 4,804,255 2,486,266 6,629,723 2,181,900 8,203,298 13,816,637 915,189 39,037,268 - Infrastructure 66,365,796 79,077,144 67,270,139 116,560,666 6,158 - - 329,279,903 - Less accumulated depreciation (28,976,834) (26,811,538) (30,773,486) (30,670,491) (6,774,462) (27,776,578) (642,372) (152,425,761) - Total capital assets (net of accumulated depreciation) 65,732,307 121,475,283 69,385,261 106,290,462 13,305,086 46,632,454 272,817 423,093,670 - Total noncurrent assets 66,069,869 122,718,510 69,746,341 106,290,462 13,305,086 59,967,692 272,817 438,370,777 - Total assets $ 74,228,559 $ 138,770,566 $ 76,716,643 $ 106,372,818 $ 15,906,410 $ 69,891,679 $ 812,894 $ 482,699,569 $ 4,232,180
STATEMENT OF NET ASSETS PROPRIETARY FUNDS (CONTINUED) Governmental Enterprise Funds Activities - Other Internal Storm Solid Enterprise Service LIABILITIES Airport Water Wastewater Sewer Waste FargoDome Funds Total Funds Current liabilities Vouchers payable $ 562,445 $ 396,627 $ 155,117 $ 18,662 $ 512,055 $ 707,777 $ 52,716 $ 2,405,399 $ 268 Retainage payable 51,613 - - - 127,735 123,080-302,428 - Interest payable - 49 50,992 57,405 108,100 - - 216,546 - Due to other funds 689 - - 360,214 857,831-27,517 1,246,251 - Accrued payroll 34,091 83,448 40,741 7,068 93,338 36,220 18,572 313,478 - Current portion of special assessments - 75 27,283 28,901 115,591 - - 171,850 - Current portion of capital lease - - - - 68,856 - - 68,856 - Accrued vacation payable 48,615 128,685 82,885 11,450 166,022-25,964 463,621 - Deferred revenue 46,156-777,000 - - 881,604 1,170 1,705,930 - Deposits - - - - - 11,790-11,790 - IBNR claim reserve - - - - - - - - 657,918 Current liabilities payable from restricted assets: Current portion of long-term debt 595,000 2,510,000 1,190,000 - - 4,395,000-8,690,000 - Accrued interest and other 57,398 884,914 121,381 - - 263,370-1,327,063 - Total current liabilities 1,396,007 4,003,798 2,445,399 483,700 2,049,528 6,418,841 125,939 16,923,212 658,186 Noncurrent liabilities Landfill closure accruals - - - - 3,018,923 - - 3,018,923 - Long-term debt, net of current portion: Special assessments payable - 804 879,553 949,103 1,780,681 - - 3,610,141 - Revenue bonds payable 4,700,000 31,308,526 - - - 6,128,848-42,137,374 - Notes payable - 1,530,429 15,198,795 - - - - 16,729,224 - Total noncurrent liabilities 4,700,000 32,839,759 16,078,348 949,103 4,799,604 6,128,848-65,495,662 - Total liabilities 6,096,007 36,843,557 18,523,747 1,432,803 6,849,132 12,547,689 125,939 82,418,874 658,186 NET ASSETS Invested in capital assets, net of related debt 61,419,516 89,763,924 55,151,769 105,312,460 11,339,958 42,015,385 272,817 365,275,829 - Restricted for: Debt service 258,084 110,418 361,080 - - 1,176,851-1,906,433 - Capital improvements - - - - - 10,600,110-10,600,110 - Unrestricted 6,454,952 12,052,667 2,680,047 (372,445) (2,282,680) 3,551,644 414,138 22,498,323 3,573,994 Total net assets $ 68,132,552 $ 101,927,009 $ 58,192,896 $ 104,940,015 $ 9,057,278 $ 57,343,990 $ 686,955 400,280,695 $ 3,573,994 The notes to the financial statements are an integral part of this statement. Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 494,685 Net assets of business-type activities $ 400,775,380
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS PROPRIETARY FUNDS FOR THE YEAR ENDED Governmental Business-type activities - Enterprise Funds Activities - Other Internal Storm Solid Enterprise Service Airport Water Wastewater Sewer Waste FargoDome Funds Total Funds OPERATING REVENUES Charges for services $ 5,295,396 $ 16,434,832 $ 8,479,324 $ 1,434,027 $ 8,765,444 $ 3,836,200 $ 1,516,823 $ 45,762,046 $ 5,312,135 OPERATING EXPENSES Personal services 844,396 2,146,804 1,060,503 189,398 2,612,620-688,507 7,542,228 - Claims/benefits - - - - - - - - 2,872,632 Other services 1,452,776 3,459,270 1,464,465 153,877 1,195,924 3,597,765 591,399 11,915,476 706,888 Materials and supplies 666,439 3,031,651 874,510 77,996 1,096,238 74,532 210,304 6,031,670 - Depreciation 2,470,356 2,655,412 2,428,663 2,488,695 789,177 2,898,179 94,900 13,825,382 - Total operating expenses 5,433,967 11,293,137 5,828,141 2,909,966 5,693,959 6,570,476 1,585,110 39,314,756 3,579,520 Operating income (loss) (138,571) 5,141,695 2,651,183 (1,475,939) 3,071,485 (2,734,276) (68,287) 6,447,290 1,732,615 NONOPERATING REVENUES (EXPENSES) Gain (loss) on disposal of assets 4,246 2,605 3,196-30,198 (16,334) 6,920 30,831 - Investment income 356,556 576,833 220,570 21,708 77,659 1,274,299 16,328 2,543,953 135,064 Interest expense and bonds fees (223,193) (1,915,351) (508,041) (57,405) (111,938) (624,809) (678) (3,441,415) - Amortization expense (11,367) (128,898) - - - (197,517) - (337,782) - General property tax revenue 459,010 - - - - - - 459,010 - Intergovernmental revenue 3,000 - - - - - 5,818 8,818 - Miscellaneous expense - (475,498) - - - (170,157) - (645,655) - Sales tax revenues - - - - - 9,696,521-9,696,521 - Total nonoperating revenues (expenses) 588,252 (1,940,309) (284,275) (35,697) (4,081) 9,962,003 28,388 8,314,281 135,064 Income (loss) before contributions and and transfers 449,681 3,201,386 2,366,908 (1,511,636) 3,067,404 7,227,727 (39,899) 14,761,571 1,867,679 CAPITAL CONTRIBUTIONS 1,849,235 - - - - - - 1,849,235 - Transfers in: General - 97,000 - - - - - 97,000 - Capital projects - 493,445 666,192 13,745,679 - - - 14,905,316 - Enterprise - - - - - - 230,004 230,004 - Transfers out: General (50,000) (2,580,000) (750,000) (140,000) (1,795,958) (25,000) (106,000) (5,446,958) - Special revenue - (12,000) (12,000) - (12,000) - (3,996) (39,996) - Capital projects - (3,116,872) (3,516,944) (1,987,883) - - - (8,621,699) - Enterprise - - - - (230,004) - - (230,004) - CHANGE IN NET ASSETS 2,248,916 (1,917,041) (1,245,844) 10,106,160 1,029,442 7,202,727 80,109 17,504,469 1,867,679 TOTAL NET ASSETS - BEGINNING 65,883,636 103,844,050 59,438,740 94,833,855 8,027,836 50,141,263 606,846 1,706,315 TOTAL NET ASSETS - ENDING $ 68,132,552 $ 101,927,009 $ 58,192,896 $ 104,940,015 $ 9,057,278 $ 57,343,990 $ 686,955 $ 3,573,994 The notes to the financial statements are an integral part of this statement. Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds. 390,946 Change in net assets of business - type activities $ 17,895,415
STATEMENT OF CASH FLOWS PROPRIETARY FUNDS FOR THE YEAR ENDED Business-type activities - Enterprise Funds Governmental Other Activities - Storm Solid Enterprise Internal Airport Water Wastewater Sewer Waste FargoDome Funds Total Service Funds CASH FLOWS FROM OPERATING ACTIVITIES Receipts from customers and users $ 5,257,550 $ 16,334,948 $ 8,413,052 $ 1,428,871 $ 8,628,306 $ 3,007,417 $ 1,502,089 $ 44,572,233 $ 5,307,234 Payments to suppliers (1,937,458) (6,527,012) (2,335,073) (221,705) (1,782,084) (3,227,668) (769,632) (16,800,632) (971,484) Payments to employees (674,208) (1,680,038) (832,970) (153,905) (2,012,935) - (562,137) (5,916,193) - Payments of benefits on behalf of employees (180,752) (462,391) (217,313) (30,488) (582,643) - (123,639) (1,597,226) (2,993,075) Net cash provided by operating activities 2,465,132 7,665,507 5,027,696 1,022,773 4,250,644 (220,251) 46,681 20,258,182 1,342,675 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers to other funds (50,000) (5,708,872) (4,278,944) (2,127,883) (2,037,962) (25,000) (109,996) (14,338,657) - Transfers from other funds - 137,500 - - - - 230,004 367,504 - Property taxes 459,611 - - - - - - 459,611 - Intergovernmental operating grant - - - - - - 1,170 1,170 - Payments received on advances to other funds - 97,000 - - 126,200 - - 223,200 - Payments received on interfund borrowing - 408,348-360,214 857,831-27,517 1,653,910 - Payments made for interfund borrowing - (1,421,153) - - - - - (1,421,153) - Net cash provided (used) by noncapital financing activities 409,611 (6,487,177) (4,278,944) (1,767,669) (1,053,931) (25,000) 148,695 (13,054,415) - CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of assets 4,246 2,605 3,196-30,198 4,001 11,750 55,996 - Proceeds from borrowing - - 2,486,457 - - - - 2,486,457 - Payment on bond settlement - (475,498) - - - - - (475,498) - Sales tax restricted for capital-related debt - - - - - 9,408,632-9,408,632 - Acquisition of capital assets (6,167,114) (42,458) (32,825) (57,450) (4,793,095) (2,184,511) (111,367) (13,388,820) - Debt service - principal (585,000) (2,375,057) (1,172,167) (21,612) (172,038) (6,974,104) (21,023) (11,321,001) - Debt service - interest & fees (226,892) (1,978,172) (458,409) (43,695) (116,708) (854,241) (1,527) (3,679,644) - Intergovernmental capital grants 1,854,706 - - - - 459,621-2,314,327 - Net cash provided (used) by capital and related financing activities (5,120,054) (4,868,580) 826,252 (122,757) (5,051,643) (140,602) (122,167) (14,599,551) - CASH FLOWS FROM INVESTING ACTIVITIES Investment income 356,665 582,136 210,356 27,080 86,233 252,798 15,796 1,531,064 127,317 Investments redeemed 9,722,575 16,839,328 4,285,417 840,573 3,042,222 8,641,793 346,456 43,718,364 - Investments (purchased) (7,833,929) (13,731,214) (6,070,777) - (1,273,525) (9,369,041) (435,582) (38,714,068) (1,486,226) Net cash provided (used) by investing activities 2,245,311 3,690,250 (1,575,004) 867,653 1,854,930 (474,450) (73,330) 6,535,360 (1,358,909) Net increase in cash and cash equivalents - - - - - (860,303) (121) (860,424) (16,234) Cash and cash equivalents, January 1-100 50-300 2,127,637 171 2,128,258 27,126 Cash and cash equivalents, December 31 $ - $ 100 $ 50 $ - $ 300 $ 1,267,334 $ 50 $ 1,267,834 $ 10,892
Reconciliation of operating income to net cash provided (used) by operating activities: Operating income (loss) $ (138,571) $ 5,141,695 $ 2,651,183 $ (1,475,939) $ 3,071,485 $ (2,734,276) $ (68,287) $ 6,447,290 $ 1,732,615 Adjustments to reconcile operating income to net cash provided by operating activities Depreciation 2,470,356 2,655,412 2,428,663 2,488,695 789,177 2,898,179 94,900 13,825,382 - Claims reserve adjustment - - - - - - - - (417,657) Change in assets and liabilities Accounts receivable (37,846) (99,884) (66,272) (5,156) (137,138) (92,901) (9,334) (448,531) (4,901) Inventories - (259) - - - 4,474-4,215 - Prepaid expenses - 49,500 - - - (45,940) - 3,560 17,178 Accounts payable 195,644 (85,332) 3,902 10,168 384,923 439,722 32,071 981,098 (11,298) Retainage payable (13,887) - - - 127,735 123,080-236,928 - Landfill closure accruals - - - - (2,580) - - (2,580) - Payroll payable 3,989 9,191 45,244 948 9,280 (76,707) 524 (7,531) - Vacation payable (14,553) (4,816) (35,024) 4,057 7,762-2,207 (40,367) - Deferred revenues - - - - - (736,872) (5,400) (742,272) - Deposits - - - - - 990-990 - Total adjustments 2,603,703 2,523,812 2,376,513 2,498,712 1,179,159 2,514,025 114,968 13,810,892 (416,678) Net cash provided (used) by operating activities $ 2,465,132 $ 7,665,507 $ 5,027,696 $ 1,022,773 $ 4,250,644 $ (220,251) $ 46,681 $ 20,258,182 $ 1,315,937 Noncash transactions affecting financial position: Acquisition of / change in assets through capital contributions and donations $ - $ 355,945 $ 2,810,525 $ 13,745,679 $ - $ - $ - $ 44,403,507 $ - Acquisition of assets through acquisition of debt $ - $ - $ 805,025 $ 247,820 $ - $ - $ - $ 1,548,485 $ - Change in fair value of investments $ 10,890 $ 19,028 $ 4,203 $ - $ 3,604 $ 9,347 $ 349 $ 47,421 $ 2,373 Reconciliation of cash and cash equivalents: Cash and cash equivalents as shown above $ - $ 100 $ 50 $ 300 $ 1,267,334 $ 50 $ 1,267,834 $ 10,892 Change in fair value of investments 10,890 19,028 4,203 3,604 9,347 349 47,421 2,373 Amount reported as investments purchased to reflect those investments with a maturity date in excess of 90 days 7,833,929 13,731,214 6,070,777 1,273,525 8,369,041 435,582 $ 37,714,068 4,032,749 Cash and equity in pooled cash and investments per the statement of net assets $ 7,844,819 $ 13,750,342 $ 6,075,030 $ 1,277,429 $ 9,645,722 $ 435,981 $ 39,029,323 $ 4,046,014 Statement of net assets line items Cash $ - $ 100 $ 50 $ 300 $ 1,267,334 $ 50 $ 1,267,834 $ 10,892 Equity in pooled cash and investments 6,942,087 10,319,244 4,402,519-4,548,448 435,931 26,648,229 4,035,122 Restricted equity in pooled cash and investments 652,398 3,394,914 1,311,471-3,218,370-8,577,153 - Restricted assets - equity in pooled cash and investments 250,334 36,084 360,990 1,277,129 611,570-2,536,107 - $ 7,844,819 $ 13,750,342 $ 6,075,030 $ 1,277,429 $ 9,645,722 $ 435,981 $ 39,029,323 $ 4,046,014 The notes to the financial statements are an integral part of this statement.
FIDUCIARY FUNDS STATEMENT OF FIDUCIARY NET ASSETS Pension Trust Agency ASSETS Cash $ 870,212 $ 101,658 Equity in pooled cash & investments 345,846 144,162 Receivables: Employer 52,582 - Employee 17,628 - Special assessments - 2,158,949 Interest 67,181 - Total receivables 137,391 2,158,949 Investments, at fair value US government obligations 6,149,110 - Corporate bonds 2,049,230 - Corporate stocks 25,697,838 - Mutual funds 28,736,188 - Cash savings value of life insurance 451,779 - Total investments 63,084,145 - Total assets $ 64,437,594 $ 2,404,769 LIABILITIES Vouchers/benefits payable $ 330,872 $ - Due to other governments - 2,158,949 Deposits - 245,820 Total liabilities 330,872 2,404,769 NET ASSETS Held in trust for pension benefits $ 64,106,722 $ - The notes to the financial statements are an integral part of this statement.
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS FIDUCIARY FUNDS FOR THE YEAR ENDING ADDITIONS Contributions Employer $ 2,064,442 Employee 1,546,064 Total contributions 3,610,506 Investment income Net appreciation in fair value of investments, and interest and dividends 6,947,780 Less investment expense (442,252) Net investment income 6,505,528 Total additions 10,116,034 DEDUCTIONS Pension benefit payments 4,126,713 Member contribution refunds 405,384 Administrative expenses 29,746 Insurance premiums 34,732 Total deductions 4,596,575 CHANGE IN NET ASSETS 5,519,459 NET ASSETS - BEGINNING OF YEAR 58,587,263 NET ASSETS - END OF YEAR $ 64,106,722 The notes to the financial statements are an integral part of this statement.
INDEX NOTE 1 SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES A. Reporting entity B. Government-wide and fund financial statements C. Measurement focus, basis of accounting and financial statement presentation D. Assets, liabilities and net assets or equity E. Issued but non-effective accounting pronouncements NOTE 2 RECONCILIATION OF GOVERNMENT-WIDE AND FUND FINANCIAL STATEMENTS A. Explanation of certain differences between the governmental fund balance sheet and the government-wide statement of net assets B. Explanation of certain differences between the governmental fund statement of revenues, expenditures, and changes in fund balances and the government-wide statement of activities NOTE 3 STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY A. Budgetary information B. Excess of expenditures over budget C. Deficit fund equity/net assets D. Net assets restricted by enabling legislation NOTE 4 DETAIL NOTES ON ALL FUNDS A. Deposits and investments B. Receivables C. Capital assets D. Commitments E. Interfund receivables, payables, and transfers F. Leases G. Long-term debt H. Deferred revenue I. Industrial revenue bonds NOTE 5 OTHER NOTES A. Risk management B. Pension plans C. Joint powers agreement D. Contingencies E. Prior period adjustment F. Subsequent event 29
1. SUMMARY OF SIGNIFICANT ACCCOUNTING POLICIES The City of Fargo operates under a "mayor-commission" form of government under the Home Rule Charter. The accounting policies of the City, as reflected in the accompanying financial statements, conform to generally accepted accounting principles for local government units. The City implemented GASB Statement No. 43, Financial Reporting for Postemployment Benefit Plans Other Than Pension Plans. This statement established uniform financial reporting standards for other postemployment benefit plans. Implementation had no material effect on the City s financial statements. The City implemented GASB Statement No. 44, Economic Condition Reporting: the Statistical Section. The objective of this statement is to improve the understandability and usefulness of the information presented in the statistical section. Implementation resulted in additional statistical information being reported. The City implemented GASB Statement No. 47, Accounting for Termination Benefits. This statement established accounting standards for termination benefits, sometimes referred to as early-retirement incentives. Implementation has no effect on the City s financial statements. The following is a summary of the City s significant accounting policies: A. REPORTING ENTITY The City is a primary government because it is a special-purpose government that has a separately elected governing body, is legally separate, and is fiscally independent of other state or local governments. Additionally, the City is not included in any other governmental reporting entity. Component units are legally separate organizations for which elected officials of the primary government are financially accountable. The City is financially accountable if it appoints a voting majority of the organization's governing body and is either: 1. able to impose its will on that organization or 2. there is potential for the organization to provide specific financial benefits to, or impose financial burdens on the City. The City may be financially accountable if an organization is fiscally dependent on the City. Component Unit - The City of Fargo Building Authority, a non-profit corporation, was formed for the purpose of providing funds to finance improvements on City property and for leasing property from the City. The directors of the Authority are made up of the City s Board of Commissioners, as well as the City Administrator and City Finance Director. The activity of the Authority is being reported as a blended component unit within the activities of the primary government. There are no separately issued statements for this component unit. B. GOVERNMENT-WIDE AND FUND FINANACIAL STATEMENTS The goal of government-wide financial statements is to present a broad overview of a government s finances. The basic statements that form the government-wide financial statements are the statement of net assets and the statement of activities. These two statements report information on all of the nonfiduciary activities of the government. For the most part, the effect of interfund activity has been removed from these statements. Governmental activities, which are normally financed through taxes and intergovernmental revenues, are reported separately from business-type activities, which are normally financed through user fees and charges for goods or services. The statement of activities reports gross direct expenses by function reduced by program revenues. This results in a measurement of net revenue or expense for each of the government s activities. Direct expenses are those that are clearly identifiable with a specific function. Program revenues are directly associated with the function or business-type activity and include 1) charges for services and 30
2) operating or capital grants and contributions that are restricted to a particular function. Taxes and other items not properly included among program revenues are reported instead as general revenues. Separate financial statements are prepared for governmental funds, proprietary funds, and fiduciary funds, even though the latter are excluded from the government-wide financial statements. Major individual governmental funds and major individual enterprise funds are reported as separate columns in the fund financial statements. C. MEASUREMENT FOCUS, BASIS OF ACCOUNTING AND FINANCIAL STATEMENT PRESENTATION The government-wide, proprietary fund, and fiduciary pension trust fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of the timing of the related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed by the provider have been met. Although agency funds have no measurement focus, they also use the accrual basis of accounting to recognize receivables and payables. Governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized as soon as they are both measurable and available. Revenues are considered to be available when they are collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However, debt service expenditures, as well as expenditures related to compensated absences and claims and judgments, are recorded only when payment is due. Taxes, special assessments, intergovernmental revenue, permits, charges for services, pledges and investment income associated with the current fiscal period are the major revenues that are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period to the extent they are collected in 60 days. All other revenue items are considered to be measurable and available only when cash is received by the City. The City reports the following major governmental funds: General Fund The general fund is the general operating fund of the City. All financial resources of the general government that are not required to be reported in another fund are accounted for in the general fund. Debt Service Fund The debt service funds are used to account for the accumulation of resources for and the payment of general long-term debt principal and interest Infrastructure Capital Projects Fund The infrastructure capital projects fund is used to account for financial resources used in the construction of major capital facilities which includes infrastructure such as streets, sidewalks, street lighting, paving, sanitary storm sewers, water mains, sewer lines and other projects. The City reports the following major proprietary funds: Airport This fund accounts for the operations and construction activities of the Hector International Airport. 31
Water This fund accounts for the activities (revenues, operating and capital expenses) of the City s water system. The City receives user fee revenues derived from sale of water and other related services to the general public. Wastewater This fund accounts for the activities (revenues, operating and capital expenses) of the City s wastewater (sewer) disposal system. The City receives user fee revenues derived from providing sanitary sewer services to the public. Storm Sewer This fund accounts for the activities (revenues, operating and capital expenses) of the City s storm sewer system. The City receives user fee revenues derived from providing storm sewer services to the public. Solid Waste This fund accounts for the activities (revenues, operating and capital expenses) of the City s garbage utility. The City receives user fee revenues derived from providing garbage services to the public and operating a regional landfill. FargoDome This fund accounts for the operation of the FargoDome which is a multi-purpose regional event center that was constructed in 1989 and is used for conventions, sporting events, trade shows, concerts and other programs. The FargoDome has a maximum seating capacity of 28,000 and is currently operated under a management contract with Global Spectrum, Inc. In addition, the City reports for the following fund types: Internal Service Funds Internal service funds are used to account for the financing of goods or services provided by one department or agency to other departments or agencies of the city or to other governmental units on a cost reimbursement basis. The City has two internal service funds, the Liability Self Insurance fund and the Health Self Insurance fund. Pension Trust Funds Pension trust funds are used to account for the activities of the City Employees Pension Plan and the Police Pension Plan, which accumulates resources for pension benefit payments. Agency Funds Agency funds are used to account for assets held by the City as agent for other individuals, organizations, or governmental units. The City has two agency funds, the Performance Deposits fund and the Park District Special Assessments fund. The City has prepared its government-wide and proprietary fund financial statements in accordance with all applicable GASB pronouncements, as well as pronouncements of the Financial Accounting Standards Board (FASB) and its predecessors issued on or before November 30, 1989, unless those pronouncements conflict with or contradict GASB pronouncements. As a general rule, the City has eliminated the effect of interfund activity from the government-wide financial statements. Exceptions to this rule are when various charges exist between different functions of the government (i.e. water and sewer charges to other various functions of the City). Elimination of these charges would distort direct costs and program revenues reported for the various functions concerned. Amounts reported as program revenues include the following: amounts received from those who purchase, use or directly benefit from a program; amounts received from parties outside the City that are restricted to one or more specific programs; and earnings on investments that are legally restricted for a specific program. Revenues that do not meet the previous criteria are reported as general revenues, including all taxes. Proprietary funds report operating revenues and expenses separately from nonoperating items. Operating revenues and expenses generally result from providing services or producing and delivering goods in connection with a proprietary fund s principal ongoing operations. The principal operating revenues of the City s enterprise funds and internal service funds are charges to customers for sales and services. Operating expenses for enterprise funds and internal service funds include 32
the costs of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues and expenses. When both restricted and unrestricted resources are available for use, it is the City s policy to use restricted resources first, then unrestricted resources as they are needed. D. ASSETS, LIABILITIES, AND NET ASSETS OR EQUITY 1. Equity in Pooled Cash and Investments, Cash and Investments The City maintains a cash and investment pool that is used by all funds. Each fund's portion of the pool is displayed on the statements as "Equity in Pooled Cash and Investments." Interest income on such investments is allocated to certain funds on the basis of the participating funds balance in the cash and investments pool. In addition, investments are separately held by various funds. Investments are reported at fair value. Cash and cash equivalents, for the purposes of GASB Statement No. 9 include cash, demand deposits, and certificates of deposit with a maturity of less than three months at the time of purchase. 2. Receivables and payables All outstanding balances between funds are reported as due to/from other funds (current portion) or advances to/from other funds (non-current portion). Any residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as internal balances. Advances between funds, as reported in the fund financial statements, are offset by a fund reserve account in applicable governmental funds to indicate that they are not available for appropriation and are not expendable available financial resources. The city is permitted under provisions of the Home Rule Charter to levy taxes as needed for general governmental services and payment of principal and interest on long-term debt. The current Home Rule Charter maximum mill levy is sixty-four mills. Total mills levied for 2006 were fifty-seven and one-quarter. All real estate is assessed on current value as of February 1 of each year. Property taxes are attached as an enforceable lien on the real estate and become due on January 1 of the year following the assessment date. A 5% reduction of taxes is allowed if taxes are paid in full by February 15. To avoid being delinquent, one-half of taxes due must be paid by March 1 and the remaining balance paid by October 15. Taxes are collected by the county and remitted monthly to the city no later than the 10 th working day following the month of collection. 3. Inventories and prepaid items Depending upon the nature of the item, inventories are valued at the lower of cost or market using either first-in-first-out or specific identification. Also, and depending upon the nature of the item or the fund in which the inventory is recorded, the costs of inventories are recorded as expenses/expenditures when purchased, or when consumed rather than when purchased. The purchase method of accounting is used for reporting purposes in most governmental funds, whereby the cost of inventory items are recognized as expenditures when purchased. However, the NRI Loan Program governmental fund uses the consumption method under which an expenditure is recognized as the inventory is consumed. Reported inventories of governmental funds are equally offset by a fund balance reservation to indicate that portion of fund balance not available for future appropriation. Inventory recorded in proprietary funds is expensed as the supplies and materials are consumed. 33
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as prepaid items in both government-wide and fund financial statements. 4. Restricted Assets Certain proceeds of the city s enterprise fund revenue bonds, as well as certain resources set aside for their repayment, are classified as restricted assets on the balance sheet because their use is limited by applicable bond covenants. Resources have been set aside for capital repair and upkeep of the FargoDome, as directed by Section 3-1509 of the Municipal Code. 5. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type activities columns in the government-wide financial statements. Capital assets are defined by the City as assets with an initial, individual cost equal to or greater than $5,000, except for infrastructure networks which are capitalized in their entirety. Such assets are recorded at historical cost or estimated historical cost. Donated capital assets are recorded at estimated fair market value at the date of donation. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend lives are not capitalized. Property, plant and equipment of the government is depreciated using the straight line method over the following estimated useful lives: 6. Compensated absences Asset Years Buildings 10 50 Improvements other than buildings 10 20 Infrastructure 20 100 Vehicles 3 10 Equipment 5 10 Office Equipment 5 10 Computer Equipment 3 5 It is the City s policy to permit employees to accumulate earned but unused vacation and sick pay benefits. Employees vest in sick leave accumulated in excess of 960 hours, which is paid out at 44.4% of their normal pay in December of every year. There is no liability for unpaid accumulated sick leave since the City does not have a policy to pay any amounts (other than the vested amounts paid out annually) when employees separate from service. All vacation pay is accrued when incurred in the government-wide, proprietary, and fiduciary fund financial statements. In the governmental funds, a liability would be reported only if they have matured, for example, as a result of employee retirements or resignations. 7. Long-term obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities or proprietary fund type statement of net assets. Bond premiums, discounts and issuance costs are deferred and amortized over the life of the bonds on a straight-line basis over the term of the related issue. Bonds payable are reported net of the applicable bond premium or discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported 34