5.5. SR 06-02-2008 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA NOTES TO FINANCIAL STATEMENTS ' DECEMBER 31, 2007 Note 1: SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES -CONTINUED ' c. Unrestricted net assets -All other net assets that do not meet the definition of "restricted" or "invested in capital assets, net of related debt". ' 10. Comparative Data/Reclassifications Comparative total data for the prior year have been presented only for individual enterprise funds in the fund ' financial statements in order to provide an understanding of the changes in the financial position and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Nate 2: STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Budgetary Information Annual budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated ' budgets are legally adopted For the Genera] fund and the Library, Ice Arena, Pinewood Golf Course, Landfill and Economic Development Authority special revenue funds. Project-length financial plans are adopted for all capita] projects funds. All annual appropriations lapse at fiscal year end. ' On or before July 1 of each year, all departments and agencies of the City submit requests for appropriation to the City's administrator so that a budget may be prepared. Before September 15, the proposed budget is presented to the City Council for review and approval. The City Council holds public hearings and may add to, subtract from, or change ' appropriations. Any changes in the budget must be within the revenue and reserves estimated as available or the revenue estimates must be changed by an affirmative vote by a majority of the City Council. The budget is prepared by fund, function, and activity and includes information on the past year, current year estimates, ' and requested appropriations for the next fiscal year. Expenditures may not legally exceed budgeted appropriations at the fund level without Council approval. Spending control is established by the amount of expenditures budgeted for the fund, but management control is exercised at the department level. Reported budget amounts are as originalty adopted or as amended by Council approved supplemental appropriations and budget transfers. Supplemental budgetary ' appropriations increased $124, I50 due mainly to increased interest income. B. Excess of Expenditures Over Appropriations ' For the year ended December 31, 2007, expenditures exceeded appropriations in the Library fund by $3,839;594, due to fhe construction of a new library, and the Pinewood Golf Course fund by $67,714. These over expenditures were funded by available fund balance and transfers. C. Deficit Fuud Equity The Park Dedica[ion fund had a deficit fund balance of $303,949. The fund deficit is expected to be covered with future fund revenues. 45