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Trunk Utility — this fund is used on trunk water and sewer improvement projects for <br />which assessments were collected. These funds would be used in lieu of having to <br />issue bonds on future system expansion/improvements. <br />External Sources: <br />ERMU — a portion of project costs that are paid by Elk River Municipal Utilities. <br />Federal Grants — grants received from federal agencies approved by the City Council. <br />MN Dot — a portion of public works improvement costs on state -aid roads are paid by <br />the Minnesota Department of Transportation. <br />Municipal State Aid — money received from the state for street construction projects. <br />State aid allotments for street construction are based on population and fiscal need. <br />