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(Draft January 2002) Key Financial Strategies
<br /> For Elk River
<br />
<br />As with the previous utihties, the City operates a financially sound electric
<br />system. Net operating income is consistently returned to the system through
<br />capital investment. The year end cash position is less in proportion to annual
<br />operations than in Water and Sewer. Additional reserves may be needed if larger
<br />capital projects are anticipated for system expansion and improvement.
<br />Additional reserves would also help manage future rate increases and the
<br />potential for competition for customer base.
<br />
<br /> 1995 1996 1997 1998 1999
<br />Revenues 6,144,733 6,642,320 7,281,411 8,060,459 8,596,004
<br />Expert ses 5,546,960 6,045,909 6,182,456 6,887,665 7,174,805
<br />Op~ing Income 597,773 596,411 1,098,955 1,172,794 1,421,199
<br />
<br />Ad)ustments 333,734 561,533 1,024,885 719,540 1,097,333
<br />Noncapital activities (99,177) (71,617) (81,227) (353,063) (366,909)
<br />Capital acitivities (866,573) (1,292,234) (1,720,790) (1,303,824) (1,709,602)
<br />Interest 50,564 47, 361 59.156 52, 317 72,155
<br />
<br />Net change in cash 16,321 (158,546) 380,979 287,764 514,176
<br />
<br />Year end cash 290,631 132,085 513,064 800,828 1,315,004
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<br />h'gure 20 - Electric Fund
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<br /> 35
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