Comprehensive Annual Financial Report - Fiscal Year ended 6/30/2017

Net change in fund balances - total governmental funds 40,838,457 $ Capital Outlays 102,753,445 $ Depreciation (46,186,040) 56,567,405 $ 56,567,405 Contributed Asset (7,179,572) $ Depreciation 4,457,020 (2,722,552) $ (2,722,552) Net change in pension assets/liabilities Other Post Retirement Benefits (1,504,921) $ Law Enforcement Officer's (3,366,891) (4,871,812) $ (4,871,812) Annexations 2,506,464 $ Property taxes 8,176 Assessments 337,214 Loss on sale of assets (177,249) 2,674,605 $ 2,674,605 Debt issued or incurred: General obligation bonds issued 73,774,999 $ Installment financing - Bond Refunding: Face amount of new debt - Payment to Escrow Agent - Principal repayments: General obligation debt (22,499,243) Installment financing (17,592,831) Net adjustment 33,682,925 $ (33,682,925) Earned vacation pay (1,368,257) $ Accrued interest expense 422,634 Net pension expense - LEO (657,421) Net pension expense - LGERS (1,870,401) (3,473,445) $ (3,473,445) 2,651,513 8,103,659 Change in net position of governmental activities 66,084,905 $ 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 Fiscal Year Ended June 30, 2017 The change in net position reported for governmental activities in the statement of activities is different because: 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. This is the amount by which capital outlays exceeded depreciation in the current period. Revenues in the statement of activities that do not provide current financial resources are not reported as revenues in the funds. Bond proceeds provide current financial resources to governmental funds, but issuing debt increases long-term liabilities in the statement of net assets. Repayment of bond principal is an expenditure in the governmental funds, but the repayment reduces long- term liabilities in the statement of net assets. 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. Changes in these expenses are shown below. Governmental funds report premiums on bonds issued as an other financing source. In the governmental activities bond premiums are recorded as a liability and amortized over the life of the debt. Amortization for bond issue costs, deferred refunding and premium on bonds are expenses or reduction of expenses in the governmental activities. Internal service funds are used by management to charge the costs of certain activities, such as risk management, equipment replacement, and central garage to individual funds. The net expense of certain activities of internal service funds is reported with governmental activities. The net book value less total accumulated depreciation of capital assets contributed to the Stormwater Enterprise fund, which is reported in business type activities. City of Raleigh _____________________________________________________________ Financial Section ____________________________________________________________ __________________________________________________________ 7 __________________________________________________________

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