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City of Elk River
<br />Management's Discussion and Analysis
<br />GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED)
<br />Financial Analysis of the Government's Funds
<br />As noted earlier, the City uses fund accounting to ensure and demonstrate compliance with finance -
<br />related legal requirements.
<br />Governmental Funds. The focus of the City`s governmental funds is to provide information on near -
<br />term inflows, outflows and balances of spendable resources. Such information is useful in assessing the
<br />City`s financing requirements. In particular, unrestricted fund balance may serve as a useful measure of
<br />a government's net resources available for spending at the end of the fiscal year.
<br />As of the end of the current fiscal year, the City`s governmental funds reported combined ending fund
<br />balances of $45,167,172, a decrease of $13,337,173 in comparison with the prior year. Approximately
<br />15% of this total amount ($6,898,714) constitutes unassigned fund balance, which is available for
<br />spending at the City`s discretion. The remainder of fund balance ($38,268,458) is not available for new
<br />spending because it is either 1) nonspendable ($160,451), 2) restricted ($12,443,162), 3) committed
<br />($11,880,096), or 4) assigned ($13,784,749) for the purposes described in the fund balance section of
<br />each balance sheet.
<br />Major Funds
<br />Fund Balance December 31,
<br />2021
<br />2020
<br />Increase
<br />(Decrease)
<br />General $ 8,750,629 $ 8,250,728 $ 499,901
<br />The General Fund is the chief operating fund of the City. The General Fund had an increase in fund balance
<br />of $499,901. The fund had net transfers of $1,696,009 during the year, which contributed to the increase.
<br />Active ER Projects $ 1,614,246 $ 6,085,899 $ (4,471,653)
<br />The Active ER Projects Fund is a major capital projects fund with a total fund balance of $1,614,246. Fund
<br />balance decreased $4,471,653 from 2020 due to park improvement capital expenditures.
<br />Pavement Management $ 6,369,604 $ 5,712,882 $ 656,722
<br />The Pavement Management Fund is a major capital projects fund with a total fund balance of $6,369,604.
<br />Fund balance increased $656,722 from 2020 as franchise taxes and intergovernmental revenue outpaced
<br />capital expenditures related to street projects.
<br />Public Safety Building / Fire Station #3 $ 3,561,280 $ 9,243,221 $ (5,681,941)
<br />The Public Safety Building / Fire Station #3 capital project fund had a total fund balance of $3,561,280. Fund
<br />balance dropped significantly from the prior year as the public safety capital expenditures were incurred.
<br />Government Building Bonds $ 1,269,905 $ 6,883,759 $ (5,613,854)
<br />The Government Building Bonds Fund is a major debt service fund that has a total fund balance of
<br />$1,269,905. The fund had significant debt service expenditures in 2021 as two previously issued bonds were
<br />refunded and the related principal was retired.
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