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Elk River Municipal Utilities
<br />April 7, 2008
<br />Page 7
<br />The following table gives an indication of the sources and uses of cash for the past five years:
<br />Cash Provided (Usedl B
<br />Year
<br />2007
<br />2006
<br />2005
<br />2004
<br />2003
<br /> Non-capital Capital
<br />Beginning Operating Financing Financing Investing Ending Cash
<br />Cash Balance Activities Activities Activities Activities Balance
<br />$ 2,041,306 $ 4,083,884 $ (485,851) $ (2,238,249) $ 138,587 $ 3,539,677
<br />2,016,433 3,046,671 (378,560) (2,804,163) 160,925 2,041,306
<br />2,361,856 3,059,049 (375,627) (3,063,265) 34,420 2,016,433
<br />1,720,813 2,917,129 (221,761) (2,076,518) 22,194 2,361,856
<br />2,250,971 2,486,997 (277,407) (2,777,275) 37,527 1,720,813
<br />Cash Flow Summary 2003 - 2007
<br />$5,000,000
<br />$4,000,000
<br />$3,000,000
<br />$2,000,000
<br />$1,000,000
<br />$-
<br />$(1,000,000)
<br />$(2,000,000)
<br />$(3,000,000)
<br />$(4,000,000)
<br />2007
<br />Operating Activities fNon-capital Financing Activities
<br />Capital Financing Activities ~~Investing Activities
<br />The cash provided by operating activities has remained relatively strong and this was enough to keep up with the amount of capital
<br />and debt needs in 2007. The summary above highlights the significant amount of cash needed each year for the capital activities of
<br />the Utilities. The operations have been able to finance the capital activities for most of the last five years. We recommend that the
<br />Utilities continue to closely monitor future cash flow with the use of projections. This will ensure that any permanent decline in
<br />cash flow is addressed quickly.
<br />952.835.9090 Fax 952.835.3261
<br />www.aemcpas.com
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