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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 -tern 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 />$39,375,862. Approximately 8% of this total amount ($3,295,335) constitutes unassigned fund balance. The remainder of
<br />fund balance ($36,080,527) is not available for new spending because it is either 1) nonspendable ($124,635) , 2) restricted
<br />($13,9255683), 3) committed ($6,146,930) or 4) assigned ($15,883,279) 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 />$109,312 during the current year, resulting primarily from budgeted transfers in.
<br />The YMCA Bonds fund decreased $117,205 due to the debt service payments on the crossover advance refunding debt
<br />issued in 2013.
<br />The TIF Districts fund decreased $210,493 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 - $3,129,636, Garbage - $613,708,
<br />Sewer - $5,628,161, Water - $3,744,773, and Electric - $11,602,113. The Garbage fund net position decreased $1,767 due
<br />mainly to the transfers out to the General Fund for administrative services. All other proprietary funds had increases in net
<br />position.
<br />General Fund Budgetary Highlights
<br />There was no difference between the original budget and the final budget for the General fund. The revenue budgets were
<br />amended to reflect the increase in building and construction related charges for services. The expenditure budgets were
<br />amended to reflect the increase in expenditures related to snow removal and engineering services. Key factors are as
<br />follows:
<br />• Total revenue collections were 101% of budget. Property tax collections were $83,308 over budget due to
<br />delinquent tax collections and licenses and permits were $23,386 over due to increased building activity.
<br />• Expenditures were under budget by $47,285 due mainly to personnel vacancies in the fire and building safety
<br />departments and sound fiscal control by city departments.
<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, 2014, amounts to $185,169,580 (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 $448,427 or less than 1 percent (a .8 percent decrease for governmental activities and
<br />a 2 percent increase for business -type activities).
<br />Major capital asset events during the current fiscal year included the following
<br />• $137,500 in general government equipment, $307,000 in public safety equipment, $393,000 in public works
<br />equipment and $254,000 in parks equipment/improvements.
<br />• Park property valued at $3,105,000 was donated to the city.
<br />• Construction totaling $749,673 was started on Natures Edge Business Center Phase II.
<br />• Construction began on the wastewater treatment facility improvements totaling over $2.6 million.
<br />• Upgraded several electric feeders and began work on the installation of a new feeder.
<br />• Two water main projects were completed in 2014.
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