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Financial Analvsis 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 />$30,777,279. Approximately 14 percent of this total amount ($4,365,025) constitutes unassigned fund balance. The
<br />remainder of fund balance ($26,412,254) is not available for new spending because it is either 1) non -spendable
<br />($239,040), 2) restricted ($3,150,743), 3) committed ($12,068,614) or 4) assigned ($10,953,857) 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 $363,907 during the current year, resulting primarily from property taxes.
<br />The Pavement Management fund increased $1,651,191 due to the collection of franchise fees and intergovernmental
<br />revenues in excess of current year street project expenditures.
<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 - $4,296,260, Garbage - $196,078,
<br />Sewer - $4,529,146, Storm Water - $723,564, Water - $6,163,714 and Electric - $8,399,896. The Garbage fund net
<br />position decreased $32,343 due to an increase in garbage disposal fees. The Sewer fund net position decreased $116,234
<br />due to budgeted transfers to other funds for administrative expenses. The Storm Water fund net position decreased
<br />$142,576 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. Key factors are as follows:
<br />• Total revenue collections were 99.8% of final budget. Licenses and permits were under budget $87,069 and
<br />interest income was over $40,484.
<br />• Expenditures were under budget by $403,597 due mainly to personnel vacancies and sound fiscal control by
<br />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
<br />of December 31, 2018, amounts to $212,375,421 (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 $6,545,562 or 3 percent.
<br />Major capital asset events during the current fiscal year included the following:
<br />• $740,000 in public safety equipment, $493,000 in public works equipment, and $270,000 in parks equipment.
<br />• Improvements to various parks totaled $313,000.
<br />• The Electric utility acquired additional infrastructure territory and completed the MMPA membership buy -in
<br />increasing intangibles.
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