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ERMUSR FINANCIALS 02-12-2008Ji Elk River -=~ Municipal Utilities 1.3069 Orono Parkway • P.O. Box 430 Elk River, MN 55330-0430 February 8, 2008 To: Elk River Municipal Utilities commission Jerry Takle Jim Tralle Jerry Gumphrey From: Theresa Slominski Subject: Financial Statements Phone: 763.441.2020 Fax: 763.441.8099 I do not have financial statements, with estimated audit adjustments, for December 2007, completed yet. I have preliminary operations numbers only. There have been a lot of staff out sick (including myself) and other items have come up that have taken my time instead of being able to focus on the financials. I plan to distribute them at the meeting on Tuesday afternoon and review them in my staff update. I can give you some general summary on operations for the year end, and it is good news. Both the electric and water operations ended the year with better-than-budgeted numbers, and the cash flow numbers for budgeted contributions to reserve are up as well. The audit adjustments that I will be including are to accrue the invoices for items we received in December but paid for in January, to accrue wages for hours worked December 27th- December 31St, and to accrue any additional vacation and sick pay earned. We will still have further adjustments -City shared costs, final depreciation (since it is estimated throughout the year), water infrastructure from developers, and other miscellaneous items but we won't have those final numbers until the end of this month.