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<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, unassigned 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 />$3 ],514,713. Approximately 13% of this total amount ($4,175,700) constitutes unassigned fund balance. The remainder of
<br />fund balance ($27,339,013) is not available for new spending because it is either 1) nonspendable ($93,080) , 2) restricted
<br />($6,936,113), 3) committed ($2,598,316) or 4) assigned ($17,711,504) for other purposes.
<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 />$165,866 during the current year. Key factors are as follows:
<br />• Total revenues were under budget by $175,000. Property tax collections were down by $90,000, gravel tax
<br />collections were down by $72,000 and interest income was down by $97,000.
<br />• Licenses and permits and charges for services were over budget due to a couple of large building/expansion
<br />projects.
<br />• Expenditures were under budget by $484,000 due to sound fiscal control by city departments.
<br />The Improvement Projects fund increased $310,982, due to special assessment collections and no significant improvement
<br />projects during 2010.
<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 - $4,629,560, Garbage - $500,819,
<br />Sewer - $4,774,365, Water - $2,974,745, and Electric - $7,257,689. The Sewer fund net assets decreased $256,534 due
<br />mainly to the increase in depreciation expense related the sewer system improvements in 2009. All other proprietary funds
<br />had increases in net assets.
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<br />General Fund Budgetary Highlights '
<br />Differences between the original budget and the final budget for the General fund amounted to $147,111. The revenue
<br />budgets were amended to reflect the addition of cable franchise taxes, an increase in building permit collections, the award '
<br />of a federal grant for project conserve, and reduction in the fire contract due to decreased fire calls. The expenditure
<br />budgets were amended to reflect the increase in expenditures related to the federal grant award and additional recreation
<br />programs.
<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, 2010, amounts to $188,408,140 (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 3 percent (a 3 percent decrease for governmental activities and a 3 percent decrease
<br />for business-type activities). '
<br />Major capital asset events during the current fiscal year included the following:
<br />• $463,000 in park improvements and equipment, $483,000 in public safety vehicles and $339,000 in public works
<br />equipment.
<br />• Reconstruction of residential and collector streets totaled $473,000.
<br />• Completion in 2010 of a new east/west street corridor within the City which totaled $4,066,000. '
<br />• System improvements for Electric totaled $998,000.
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