|
<br />Financial Analysis of the Government's Funds
<br />Governmental funds. The focus of the City's governmental funds is to provide information on near-term inflows,
<br />outflows, and balances of spendable resources. Such information is useful in assessing the City's financing requirements.
<br />In particular, unreserved fund balance may serve as a useful measure of a government's net resources available for
<br />spending at the end of the fiscal year.
<br />As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
<br />$30,180,383. Approximately 78% of this total amount ($23,645,178) constitutes unreserved fund balance, which is
<br />available for spending at the City's discretion. The remainder of fund balance ($6,535,205) is reserved to indicate that it is
<br />not available for new spending because it has already been committed to provide for 1) debt service ($2,484,203), 2) capital
<br />equipment/projects ($1,744224), 3) landfill mitigation ($1,695,115), 4) notes receivable ($480,421), or 5) prepaid items
<br />($131,242).
<br />The General fund is the chief operating fund of the City of Elk River. The total fund balance of the General fund increased
<br />$508,913 during the current year. Key factors are as follows:
<br />• Property tax collections were down by $143,535, gravel tax collections were down by $75,567 and interest income
<br />was down by $89,270.
<br />• Licenses and permits and charges for services were affected by the decline in building and development activity
<br />due to the economic environment.
<br />• Expenditures were under budget by $576,758 due to sound fiscal control by city departments.
<br />The Street Improvements fund increased by $243,861, due primarily to the timing of project revenues and the issuance of
<br />debt to fund project costs incurred. The Improvement Projects fund increased $282,743, due to special assessment
<br />collections and the transfer in of closed bond funds.
<br />Proprietary funds. The City of Elk River's proprietary funds provide the same type of information found in the
<br />government-wide statements, but in more detail.
<br />Unrestricted net assets in the respective proprietary funds are Municipal Liquor - $4,217,754, Garbage - $383,498,
<br />Sewer - $4,196,133, Water - $5,266,291, and Electric - $5,976,492. The Sewer fund net assets decreased $167,137 due to
<br />the construction slow down as reflected in the connection fees collected and the decrease in interest income due to market
<br />rate conditions. All other proprietary funds had increases in net assets.
<br />General Fund Budgetary Highlights
<br />Differences between the original budget and the final budget for the General fund amounted to $360,050. The revenue
<br />budgets were amended to reflect the reduction in Local Government Aid (LGA) and Market Value Homestead Credit
<br />(MVHC) from the State of Minnesota, the addition of cable franchise taxes, the increase in charges for services because of
<br />added recreation programs, and the increase in recreation-sponsored contributions. The expenditure budgets were amended
<br />to reflect decreases in all the categories for budgetary cuts in personal services, supplies, and services resulting from the
<br />reduction in LGA and MVHC and decreases in transfers out for corresponding budget reductions in the ice arena and golf
<br />course operations.
<br />Capital Asset and Debt Administration
<br />Capital Assets. The City of Elk River's investment in capital assets for its governmental and business type activities as of
<br />December 31, 2009, amounts to $194,776,889 (net of accumulated depreciation). This investment in capital assets includes
<br />land, buildings, improvements, equipment and infrastructure. The total decrease in the City of Elk River's investment in
<br />capital assets for the current year was 1 percent (a .2 percent decrease for governmental activities and a 3 percent decrease
<br />for business-type activities).
<br />17
<br />
<br />
<br />n
<br />n
<br />0
<br />v
<br />
<br />
<br />0
<br />
<br />
<br />0
<br />
<br />
<br />
<br />
<br />r
<br />
<br />
|