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Fund balance should be
<br />
<br />· Expenditures a
<br /> revenues are n~
<br /> required to fm~
<br />
<br />· The City is vul
<br /> 2001 legislativ
<br /> and local gove:
<br /> legislative sess
<br /> levy limits.
<br />
<br />· Expenditures n
<br /> would include
<br /> financing need
<br />
<br />· A strong fund
<br /> better interest
<br />
<br />A table summarizing th
<br />
<br />Year
<br />
<br />2OO3
<br />2002
<br />2001
<br />2000
<br />1999
<br />
<br />$9,000,000
<br />$8,000,OO0
<br />$7,000,000
<br />$6,000,000
<br />$5,000,000
<br />$4,000,000
<br />$3,000,000
<br />$2,000,000
<br />$1,000,000
<br />$-
<br />
<br />City of Elk River
<br /> March 19, 2004
<br /> Page Seven
<br />
<br />maimained for the following reasons:
<br />
<br /> Purposes and Benefits
<br />
<br />re incurred somewhat evenly throUghout the year. However, currently, property tax and state aid
<br />~t received until the second half of the year. An adequate fund balance will provide the cash flow
<br />.nce the general fund expenditures Until these revenue sources are received.
<br />
<br />aerable to legislative actions at the State and Federal level. The State eliminated HACA aid with the
<br />: session and has since in the 2003 legislative session imposed reductions of market value credit aid
<br />xunent aid for some cities. Levy limits have also been implemented for municipalities in past
<br />tons. An adequate fund balance will provide a temporary buffer against those aid adjustments and
<br />
<br />ot anticipated at the time the annuall budget was adopted may need immediate Council action. These
<br />:apital outlay replacement, lawsuits and other items. An adequate fund balance will provide the
<br />:d for such expenditures.
<br />
<br />~alance will assist the City in obtaining, maintaining or improving its bond rating. The result will be
<br />ates in future bond sales.
<br />
<br /> · ·
<br />general fund balance In relation to ibudget follows:
<br />
<br /> Fund
<br /> Following Balance
<br />Fund Year as a Percent
<br />Balance Budget of Budget
<br />
<br />3,732,049 $ 7,875,400 47%
<br />3,190,589 7,687,900 42
<br />3,062,175 7,215,500 42
<br />2,695,612 6,470,000 42
<br />2,312,880 5,862,500 39
<br />
<br />Fund Balance as a PerCent of Next Year's Budget
<br />
<br />$5,862,500 $6,450,000
<br />
<br />$7,215,500 $7,687,900 $7,87,5,400
<br />
<br /> 42% 47%
<br />42%
<br />
<br />1999 2000 200, 1 2002
<br />
<br /> I ~ Fund Balance --1-- Budget I
<br />
<br />952.835.9090 · Fax952.835.3261
<br />
<br />2003 2004
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