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(Draft January 2002) Key Financial Strategies
<br /> For Elk River
<br />
<br />Entergrise Funds
<br />Enterprise funds account for activities of municipal utilities. Utilities are
<br />intended to be financially self-sufficient. These funds play an important role in
<br />long-term financial planning.
<br />
<br />The City operates the following enterprises: garbage collection, municipal hquor,
<br />sewage disposal, water, and electric. Electric and water services are operated by
<br />the Utilities Commission.
<br />
<br />Revenue and expenditure trends in the Garbage Collection Fund show a solid
<br />and sustaining financial position.
<br />
<br /> 1995 1996 1997 1998 1999
<br />Revenues 694,863 734,403 683,785 718,216 754,804
<br />Expenses 691.892 733.555 678,739 717,400 748.683
<br />Operating Income 2,971 848 5,046 816 6,121
<br />
<br />Adjustments 13,973 4,014 10,997 27,447 112,867
<br />Noncapital activities 0 0 0 3,020 0
<br />Capital acitivities 0 0 0 0 0
<br />Interest Z 132 Z 300 Z 938 3:940 5~ 300
<br />
<br />Net change in cash 19,076 7,162 18,981 35,223 124,288
<br />
<br />Year end cash 36,378 43,540 62,521 98,662 222,950
<br />
<br />Figure 16- Garbage Collection Fund
<br />
<br />The trend analysis shows that the City runs a profitable municipal liquor store.
<br />In addition to annual net income, the Liquor Fund has grown a strong fund
<br />balance. Operating income from the Liquor Fund is used to support other
<br />services and capital projects.
<br />
<br /> 1995 1996 1997 1998 1999
<br />Revenues 563,178 629,525 675,454 691,512 826,546
<br />Expenses 275.855 292.064 352.551 455,045 431,835
<br />Operating Income 287,323 337,461 322,903 236,467 394,711
<br />
<br />Adjustments 26,208 (134,155) 7,375 117,348 64,556
<br />Noncapital activities (183,450) (163,450) (153,450) (131,651) (141,250)
<br />Capital acitivities (403,371) (51,066) (362,997) (166,980) (151,623)
<br />Interest 36.612 30.344 33.615 24.§;~5 20.699
<br />
<br />Net change in cash (236,678) 19,134 (152,554) 79,809 187,093
<br />
<br />Year end cash 737,324 756,458 603,904 691,795 878,888
<br />
<br />Figure 17 - Liquor Fund
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