6.1. SR 06-06-2005 - Laserfiche WebLink

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Factors Affecting Financial Condition I I I I read in conjunction with it. The City of Elk River's MD&A can be found immediately following the report of the independent auditors. I I Profile of the Government The City of Elk River was originally incorporated in 1880 and consolidated with Elk River Township in 1978 to form a City of 44 square miles. The current population is 20,240. The City of Elk River is located in Sherburne County and serves as the county seat. Elk River is located approximately halfway between the metropolitan areas of Minneapolis/St. Paul and Saint Cloud along the Mississippi River. The City of Elk River is still growing and full development is not anticipated in the near future. Urban services are available to approximately one-third of the City, and it is highly unlikely that the entire City will be served by municipal water and sewer in the foreseeable future. I I The City of Elk River operates under a statutory form of government consisting of a four member City Council and a Mayor who is also a voting member. Council members are elected by ward to a four year term with two Council seats up for election each even year. The Mayor is also elected to a four year term. The City Council is responsible for adopting the City's budget and tax levy, passing resolutions and ordinances, all hiring and firing decisions, policy making, development and growth planning, and overall direction of the City. I I I In addition to providing general government services, the City of Elk River provides a full range of other services including police and fire protection, building and other safety inspections, planning and zoning, economic development, environmental services, parks and recreation, library, street, snow removal, infrastructure maintenance and repair, and others. The City provides municipal water, sewer, garbage, and electric services and operates an off sale liquor store. I I The annual budget serves as the foundation for the City of Elk River's financial planning and control. Budget requests are submitted by all departments to the Finance Department each June. The Finance Department compiles these requests into a proposed budget. The Finance Department and City Administrator review the information and present a draft budget to the Council in August for consideration. Following Council discussion and public input, the final tax levy and budget are approved in December. The City's Financial Management Plan allows department heads to make administrative budget amendments (excluding personal service and capital outlay) throughout the year as long as the total department budget does not change and the amendment is approved by the City Administrator and Finance Director. The Council approves additional budget amendments in December of each year. Budget to actual comparisons are provided in this report for each individual governmental fund for which an appropriated annual budget has been adopted. For the general fund, this comparison is presented on page 24 as part of the basic financial statements for the governmental funds. For governmental funds, other than the general fund, with appropriated annual budgets, this comparison is presented in the governmental fund subsection of this report. I I I The information presented in the financial statements is perhaps best understood when it is considered from the broader perspective of the specific environment within which the City of Elk River operates. Local economy. Building activity continued to be very strong last year. Building permits were issued in 2004 for a total of $120,729,413 of new construction. Of this total, new commercial, industrial, and institutional building totaled $22,342,242. This includes $15,900,000 for an addition to the county jail. I 2 I I