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(Draft January 2002) Key Financial Strategies <br /> For Elk River <br /> <br />The balance in the General Fund is an essential asset of the City. The Fund <br />balance serves several purposes: <br /> <br />· Cash Flow. Revenues are not collected evenly over the course of the <br /> year. For example, revenues from property taxes and many State aids are <br /> received in July and December. <br />· Contingency. Not all expenditures can be planned. <br />· Financial Management. Reserves can be used to meet unusual needs and <br /> prevent spikes in tax rates. <br />· Rating. General Fund balance is a key factor in the bond rating analysis. <br /> <br />The City has demonstrated the commitment to build and maintain the necessary <br />balance in the General Fund. <br /> <br />6,000,000 <br /> <br />5,000,000 <br />4,000,000 <br />3,000,000 <br />2,000,000 <br />1,000,000 <br />0 <br /> <br />1994 1995 1996 1997 1998 1999 <br />[l110¢1 F.~enditures r--m General Fund Balance --~--Balance as % of F-x~nditures I <br /> <br />h'~ure 13 - General Fund Balance <br /> <br />50.00% <br />45.00% <br />40.00% <br />35,00% <br />30.00% <br />25.00% <br />20.00% <br />15.00% <br />10.00% <br />5.00% <br />0.00% <br /> <br />Page <br /> 30 <br /> <br /> <br />