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17
<br />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
<br />requirements. In particular, unassigned fund balance may serve as a useful measure of a government’s net resources
<br />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
<br />$29,112,913. Approximately 15 percent of this total amount ($4,225,785) constitutes unassigned fund balance. The
<br />remainder of fund balance ($24,887,128) is not available for new spending because it is either 1) non-spendable
<br />($88,038), 2) restricted ($3,104,196), 3) committed ($10,354,648) or 4) assigned ($11,340,246) 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
<br />increased $539,433 during the current year, resulting primarily from budgeted transfers in.
<br />The YMCA Bonds fund decreased $9,246,547 due to the refunding of the 2007 EDA General Obligation bonds.
<br />The Pavement Management fund decreased $673,231 due to the 2017 street improvements. Those expenditures were
<br />largely offset by the collection of franchise fees and intergovernmental 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 - $3,860,570, Garbage - $228,421,
<br />Sewer - $3,514,216, Storm Water - $409,910, Water - $4,833,491 and Electric - $9,105,695. The Garbage fund net
<br />position decreased $163,042 due to an increase in garbage disposal fees. The Sewer fund net position decreased
<br />$167,765 due to budgeted transfers to other funds for administrative expenses. The Storm Water fund net position
<br />decreased $246,672 due mainly to depreciation expense. All other proprietary funds had increases in net position.
<br />General Fund Budgetary Highlights
<br />The original budget for the General fund was amended to reflect an increase in public safety state aid revenue with a
<br />corresponding increase in public safety expenditures. At year-end the City Council made a number of transfers which
<br />were not budgeted to finance capital projects that will be completed in the future. Key factors are as follows:
<br />•Total revenue collections were 104% of final budget. Licenses and permits were over budget $292,593 and
<br />charges for services were over $116,903 due mainly to increased building activity.
<br />•Expenditures were under budget by $444,988 due mainly to personnel vacancies and sound fiscal control by
<br />City departments.
<br />•Transferred $147,450 to the Capital Reserve fund and $119,382 to the Park Improvement fund for future
<br />capital projects.
<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
<br />of December 31, 2017, amounts to $205,829,859 (net of accumulated depreciation). This investment in capital assets
<br />includes land, buildings, improvements, equipment and infrastructure. The total increase in the City of Elk River’s
<br />investment in capital assets for the current year was $204,190 or 0.1 percent.
<br />Major capital asset events during the current fiscal year included the following:
<br />•$300,000 in public safety equipment.
<br />•Construction of $4.1 million for the 2017 street improvement project.
<br />•Completion of the $500,000 River’s Edge Park expansion.
<br />•Completed construction on the $18 million wastewater treatment plant expansion.
<br />•The Electric utility acquired additional infrastructure territory which included approximately 480 customers.
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