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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 />$33,687,643. Approximately 12% of this total amount ($4,201,744) constitutes unassigned fund balance. The remainder of
<br />fund balance ($29,485,899) is not available for new spending because it is either 1) nonspendable ($57,870) , 2) restricted
<br />($5,962,758), 3) committed ($2,868,968) or 4) assigned ($20,596,303) 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 />$291,147 during the current year, resulting primarily from less than anticipated expenditures.
<br />The Improvement Projects fund decreased $3,661 due mainly to the transfer out to the water fund.
<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 - $2,311,263, Garbage - $567,590,
<br />Sewer - $5,240,046, Water - $2,763,345, and Electric - $8,741,345. The Municipal Liquor fund net assets decreased
<br />$2,291,427 due to the transfer out for the public works facility project and the Sewer fund net assets decreased $367,362
<br />due mainly to system repairs and maintenance. 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 $65,000. The revenue
<br />budgets were amended to reflect the increase in building permit collections. The expenditure budgets were amended to
<br />reflect the increase in expenditures related to personnel adjustments. Key factors are as follows:
<br />• Total revenue collections were 100% of budget. Property tax collections were almost $40,000 over budget due to
<br />delinquent collections and licenses and permits was approximately $25,000 over budget due to a large building
<br />expansion project.
<br />• Charges for services were down due to a lack of chargeable engineering projects and interest income was down
<br />due to market rate conditions.
<br />• Expenditures were under budget by approximately $505,000 due mainly to several vacant positions and sound
<br />fiscal control by city departments.
<br />• Transfers out to the ice arena were under budget due to increased ice rental revenues.
<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, 2011, amounts to $184,028,272 (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 2 percent (a 2 percent decrease for governmental activities and a 2 percent decrease
<br />for business -type activities).
<br />Major capital asset events during the current fiscal year included the following:
<br />• $308,000 in park improvements and equipment, $210,000 in public safety vehicles and $200,000 in public works
<br />equipment.
<br />• Reconstruction of residential and collector streets totaled over $1,200,000.
<br />• Construction began on the public works facility expansion which totaled over $900,000.
<br />• Property was purchased for $225,000 to expand the downtown municipal parking.
<br />• System improvements for Water and Electric totaled almost $2,000,000.
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