6.0. SR 05-11-1998 - Laserfiche WebLink

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Electric Fund Operating cash and investments Restricted cash and investments Total Elk River Municipal Utilities March 3, 1998 Page Three 1997 1996 $ 513 064 $ 132 085 326 959 440 608 $ 840 023 $ 572 693 The following table tracks cash balance, unreserved retained earnings and fixed asset additions for the previous five years in the Electric Fund. Operating Unreserved Cash Retained Fixed Asset Balances Earnings, Additions 1997 $ 513 064 $ 8535224 $ 1652085 1996 132 085 7 150 377 1 445 986 1995 290 631 6 540 533 1 014 220 1994 274 310 6 016 135 1 123 234 1993 219 693 5 184 241 1 236 314 The effects of rate increases and new customers were reflected in a 9.6% increase in charges for services. The operating expenses stayed fairly consistent with the prior year and the final payment on the remaining bond issues was completed. Completing the bond issues reduced restrictions on cash totaling $109,083. These factors all contributed to the increase in operating cash. We set a target cash balance last year of approximately $950,0000 based on one and a half months operating expenses and one month of budgeted capital improvements. The budgeted operating expense for 1998 is $6,882,080 and the capital budget for 1998 is $1,334,000. At these levels, the cash balance should be approximately $970,000. Significant progress was made in 1997 but there still is a long way to go to reach the recommended minimum. Water Fund Charges for services Operating expenses excluding depreciation Operating income before depreciation Depreciation expense Operating income Cash and investments 1997 1996 $ 525 646 $ 388 837 253 622 199 164 272 024 189 673 127 693 121 417 $ 144 331 $ 68 256 $1 302 976 $1 203 653 An increase in consumption, rates and new customers caused the increase in revenue and cash balances. The current cash balance is adequate to provide for working capital needs but will need to be monitored as new debt is issued and more capital needs are budgeted. Collateral of Deposits The Utilities is required by Minnesota Statutes Section 118A.03, subd. 3, to have pledged collateral for its deposits in excess of FDIC insurance. At year end, $33,635 of deposits were not secured. We recommend the adequacy of coverage be evaluated each month.