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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 /> $34,206,979. Approximately 13%of this total amount($4,391,643)constitutes unassigned fund balance. The remainder of
<br /> fund balance($29,815,336)is not available for new spending because it is either 1)nonspendable($122,013),2)restricted
<br /> ($7,608,842),3)committed($2,664,671)or 4)assigned($19,419,810)for other purposes.
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<br /> The General fund is the chief operating fund of the City of Elk River. The total fund balance of the General fund decreased
<br /> $92,298 during the current year,resulting primarily from the intended use of fund balance and less than anticipated
<br /> expenditures.
<br /> The Improvement Projects fund decreased$120,093 due mainly to the transfer out to the street improvements fund.
<br /> The Government Buildings fund decreased$981,622 due to the construction of a public works facility.
<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 position in the respective proprietary funds are Municipal Liquor-$2,120,545, Garbage-$618,673,
<br /> Sewer-$5,419,009,Water-$3,344,499,and Electric-$10,790,018. The Sewer fund net position decreased$314,584 due
<br /> mainly to system repairs and maintenance. All other proprietary funds had increases in net position.
<br /> General Fund Budgetary Highlights
<br /> Differences between the original budget and the final budget for the General fund amounted to$131,200. The expenditure
<br /> budgets were amended to reflect the decrease in expenditures related to personnel adjustments. Key factors are as follows:
<br /> • Total revenue collections were 100%of budget. Property tax collections were$42,058 over budget due to
<br /> delinquent collections and other taxes were$55,623 over due to increased gravel tax collections.
<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 almost$582,000 due mainly to several vacant positions,savings realized
<br /> through the state fuel contract and sound fiscal control by city departments.
<br /> • Transfers out were over budget due to an unbudgeted transfer to the capital outlay reserve fund for capital
<br /> equipment.
<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 31,2012,amounts to$186,314,227(net of accumulated depreciation). This investment in capital assets includes
<br /> land,buildings, improvements,equipment and infrastructure. The total increase in the City of Elk River's investment in
<br /> capital assets for the current year was 1 percent(a 4 percent increase 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 /> • $261,000 in public safety vehicles,$314,500 in public works equipment. $172,500 in parks equipment
<br /> ® Infrastructure improvements for Nature's Edge Business Park totaled$1,177,000.
<br /> ® Added$7,898,422 of construction costs for the public works facility expansion.
<br /> ® Park property was purchased for$99,669 and$69,800 of vacant municipal liquor property was transferred to
<br /> public works for street right-of-way.
<br /> ® $270,000 installation of fiber optic infrastructure to connect the city's network system.
<br /> • System improvements for water and electric totaled almost$1,500,000.
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