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<br />Financial Analysis of the Government's Funds
<br />
<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance-related legal
<br />requirements.
<br />
<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, unreserved 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 />
<br />As of the end of the current fiscal year, the City's governmental funds reported combined ending fund balances of
<br />$25,535,690. Approximately 54% of this total amount ($13,849,941) constitutes unreserved fund balance, which is
<br />available for spending at the City's discretion. The remainder of fund balance ($11,685,749) is reserved to indicate that it is
<br />not available for new spending because it has already been committed to provide for 1) debt service ($6,329,803), 2) capital
<br />equipment/projects ($2,961,664), 3) landfill mitigation ($2,189,343), or 4) a variety of otherrestricted purposes ($204,939).
<br />
<br />The general fund is the chief operating fund of the City of Elk River. The general fund increased by $235,331 in 2004,
<br />which was primarily due to license and permit and charges for service revenues exceeding budget projections.
<br />
<br />The improvement bonds fund increased by $371,157, which is primarily due to the prepayment of assessments on
<br />improvement projects. The capital projects fund decreased by $51,123 due to transfers out to other funds for projects. The
<br />permanent improvement revolving fund decreased by $19,967 due to transfers to debt service funds. The tax increment
<br />financing districts fund decreased by $240,874 due to infrastructure improvement projects funded by tax increment.
<br />
<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 />
<br />Unrestricted net assets in the respective proprietary funds are municipal liquor - $2,521,275, garbage - $86,545, sewer-
<br />$5,110,855, water - $1,804,410, and electric - $3,154,796. All proprietary funds had increases in net assets.
<br />
<br />General Fund Budgetary Highlights
<br />
<br />Differences between the original budget and the fmal budget for the general fund amounted to $166,250. The revenue and
<br />expenditure budgets were amended to reflect increased revenues in the license and permits, and charges for services,
<br />decreased revenues in interest income, and expenditure increases in all categories due to increased activity and demand for
<br />services. Revenues exceeded budgetary estimates and expenditures exceeded budgetary projections, but revenues still
<br />exceeded expenditures and resulted in an increase in fund balance of$235,331.
<br />
<br />Capital Asset and Debt Administration
<br />
<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, 2004, amounts to $153,224,262 (net of accumulated depreciation). This investment in capital assets includes
<br />land, buildings, improvements, equipment and infrastructure.
<br />
<br />Capital Assets, Net of Depreciation
<br />
<br />Governmental
<br />Activities
<br />2004 2003
<br />
<br />Business-type
<br />Activities
<br />2004 2003
<br />
<br />Total
<br />2004 2003
<br />
<br />Land $ 29,033,685 $ 24,804,495 $ 1,442,669 $ 1,431,669 $ 30,476,354 $ 26,236,164
<br />Construction in progress 2,221,500 1,030,122 16,072 1,030,122 2,237,572
<br />Buildings 15,062,808 12,647,294 9,105,721 9,411,046 24,168,529 22,058,340
<br />Other improvements 1,216,737 1,209,053 1,216,737 1,209,053
<br />Equipment 2,485,867 2,416,061 372,216 430,907 2,858,083 2,846,968
<br />Infrastructure 38.959.333 35.354.020 54.515.104 50.757.713 93.474.437 86.111.733
<br />Total $ 86 758 430 $ 78 652 423 $ 66 465 832 $ 62 047407 $153224 262 $140699830
<br />
<br />Additional information on the City's capital assets can be found in Note 3C on pages 42 - 43 of this report.
<br />
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