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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 /> $38,479,671. Approximately 9%of this total amount($3,467,175)constitutes unassigned fund balance. The remainder of
<br /> fund balance($35,012,496) is not available for new spending because it is either 1)nonspendable($114,331) ,2)restricted
<br /> ($14,800,868),3)committed($4,641,626)or 4)assigned($15,455,671)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 decreased
<br /> $151,024 during the current year,resulting primarily from the intended use of fund balance and less than anticipated
<br /> expenditures.
<br /> The YMCA Bonds fund increased$9,730,259 due to the issuance of refunding bonds.
<br /> The TIF Districts fund decreased$946,916 due to TIF development expenses that will be reimbursed with future TIF
<br /> revenues.
<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-$2,535,831,Garbage-$615,475,
<br /> Sewer-$5,795,594,Water-$3,233,364,and Electric-$10,777,242. The Garbage fund net position decreased$3,198 due
<br /> mainly to the market value adjustment of investments and the Sewer fund net position decreased$426,346 due mainly to
<br /> 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 tuna amounted to$3,200. The expenditure
<br /> budgets were amended to reflect the increase in expenditures related to park maintenance. Key factors are as follows:
<br /> Total revenue collections were 99%of budget. Property tax collections were$52,961 under budget due to
<br /> delinquent taxes and other taxes were$30,129 over due to increased gravel tax collections.
<br /> • Expenditures were under budget by$247,095 due mainly to several vacant positions and sound fiscal control by
<br /> city departments.
<br /> • Transfers out were over budget due to Council approved transfers to the capital outlay reserve fund for capital
<br /> equipment and to the storm water management fund.
<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 31,2013,amounts to$184,721,153 (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$1,593,074 or less than 1 percent(a 1.4 percent decrease for governmental activities
<br /> and a.006 percent decrease for business-type activities).
<br /> Major capital asset events during the current fiscal year included the following:
<br /> • $209,000 in public safety equipment, $195,000 in public works equipment and$503,000 in parks equipment
<br /> • Infrastructure improvements for the street improvement project totaled$2.6 million.
<br /> • Completed the public works facility expansion adding an additional$636,630 in construction costs and
<br /> capitalizing$8.7 million to buildings and$800,000 to improvements.
<br /> • System improvements for water and electric resulted in$2.2 million assets being added and an additional$2.2
<br /> million in projects carried over to the next fiscal year.
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