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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, outflows, and
<br />balances of spendable resources. Such information is useful in assessing the City's financing requirements. In particular, unassigned
<br />fund balance may serve as a useful measure of a government's net resources available for 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 $41,112,019.
<br />Approximately 9 percent of this total amount ($3,719,130) constitutes unassigned fund balance. The remainder of fund balance
<br />($37,392,889) is not available for new spending because it is either 1) nonspendable ($126,971), 2) restricted ($13,209,500),
<br />3) committed ($8,476,894) or 4) assigned ($15,579,524) 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 $401,196
<br />during the current year, resulting primarily from budgeted transfers in.
<br />The YMCA Bonds fund decreased $117,162 due to the debt service payments on the crossover advance refunding debt issued in 2013.
<br />The TIF Districts fund decreased $289,727 due to the repayment of excess decertified TIF funds returned to the county.
<br />The Pavement Management fund increased $440,415 due to collection of franchise fees and intergovernmental revenues in excess of
<br />current year expenditures.
<br />Proprietary funds. The City of Elk River's proprietary funds provide the same type of information found in the government -wide
<br />statements, but in more detail.
<br />Unrestricted net position in the respective proprietary funds are Municipal Liquor - $3,124,753, Garbage - $537,038, Sewer -
<br />$6,495,624, Storm Water - $168,218, Water - $4,207,713, and Electric - $9,970,953. The Garbage fund net position decreased
<br />$61,127 due mainly to the transfers out to the General Fund for administrative services. All other proprietary funds had increases in
<br />net 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 amended to
<br />reflect the increase in building and construction related charges for services. The expenditure budgets were amended to reflect the
<br />increase in expenditures related to snow removal and engineering services. Key factors are as follows:
<br />• Total revenue collections were 101% of budget. Property tax collections were $52,094 under budget and licenses and
<br />permits were $40,391 over due to increased building activity.
<br />• Expenditures were under budget by $329,747 due mainly to personnel vacancies in the police department and sound fiscal
<br />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, 2015, amounts to $193,893,426 (net of accumulated depreciation). This investment in capital assets includes land,
<br />buildings, improvements, equipment and infrastructure. The total increase in the City of Elk River's investment in capital assets for
<br />the current year was $8,723,846 or 5 percent.
<br />Major capital asset events during the current fiscal year included the following:
<br />• $590,000 in public safety equipment and $48,000 in public works equipment.
<br />• Construction of $3.7 million for the 2015 street project.
<br />• Construction continued on Natures Edge Business Center Phase II project. ($318,113 in 2015)
<br />• Construction continued on the wastewater treatment facility improvements totaling over $10.5 million in 2015.
<br />• Incurred approximately $600,000 of costs for 2015 storm sewer projects in 2015.
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