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City of Elk River <br />Management's Discussion and Analysis <br />GOVERNMENT -WIDE FINANCIAL ANALYSIS (CONTINUED) <br />City of Elk River's Changes in Net Position <br />Governmental Activities <br />Business -Type Activities <br />Increase <br />Increase <br />2022 <br />2021 <br />(Decrease) <br />2022 <br />2021 <br />(Decrease) <br />Revenues <br />Program revenues <br />Charges for services <br />$ 3,805,379 <br />$ 3,524,749 $ <br />280,630 <br />$ 61,806,702 <br />$ 58,307,035 $ <br />3,499,667 <br />Operating grants <br />and contributions <br />1,905,073 <br />1,328,148 <br />576,925 <br />- <br />- <br />- <br />Capital grants and <br />contributions <br />8,005,633 <br />5,916,070 <br />2,089,563 <br />7,289,979 <br />4,308,960 <br />2,981,019 <br />General revenues <br />Property taxes <br />15,250,309 <br />14,290,673 <br />959,636 <br />- <br />- <br />- <br />Franchise and gravel taxes <br />1,722,678 <br />1,754,189 <br />(31,511) <br />Sales taxes <br />3,862,154 <br />3,469,146 <br />393,008 <br />- <br />Grants and contributions not restricted <br />734,932 <br />747,226 <br />(12,294) <br />- <br />- <br />- <br />Unrestricted investment earnings <br />(2,079,797) <br />(56,944) <br />(2,022,853) <br />(1,947,278) <br />(75,566) <br />(1,871,712) <br />Gain (loss) on disposal <br />of capital assets <br />108,455 <br />1,053,072 <br />(944,617) <br />32,788 <br />(159,879) <br />192,667 <br />Miscellaneous revenues <br />537,061 <br />522,275 <br />14,786 <br />- <br />- <br />- <br />Total revenues <br />33,851,877 <br />32,548,604 <br />1,303,273 <br />67,182,191 <br />62,380,550 <br />4,801,641 <br />Expenses <br />General government <br />5,180,758 <br />4,655,075 <br />525,683 <br />- <br />- <br />- <br />Public safety <br />11,558,469 <br />8,082,449 <br />3,476,020 <br />- <br />Public works <br />7,638,554 <br />5,340,633 <br />2,297,921 <br />- <br />- <br />- <br />Culture and recreation <br />6,139,661 <br />11,070,966 <br />(4,931,305) <br />- <br />- <br />- <br />Economic development <br />527,673 <br />433,530 <br />94,143 <br />- <br />- <br />- <br />Interest and fiscal charges <br />1,615,250 <br />1,796,294 <br />(181,044) <br />- <br />- <br />- <br />Municipal liquor <br />- <br />- <br />7,785,027 <br />7,683,695 <br />101,332 <br />Sewer <br />3,759,165 <br />3,743,503 <br />15,662 <br />Garbage <br />1,670,454 <br />1,623,785 <br />46,669 <br />Storm water <br />663,420 <br />612,527 <br />50,893 <br />Electric <br />43,262,804 <br />38,462,316 <br />4,800,488 <br />Water <br />3,208,929 <br />3,210,394 <br />(1,465) <br />Total expenses <br />32,660,365 <br />31,378,947 <br />1,281,418 <br />60,349,799 <br />55,336,220 <br />5,013,579 <br />Increase in Net <br />Assets before transfers <br />1,191,512 <br />1,169,657 <br />21,855 <br />6,832,392 <br />7,044,330 <br />(211,938) <br />Transfers <br />2,026,029 <br />2,832,128 <br />(806,099) <br />(2,026,029) <br />(2,832,128) <br />806,099 <br />Changes in Net Position <br />3,217,541 <br />4,001,785 <br />(784,244) <br />4,806,363 <br />4,212,202 <br />594,161 <br />Net position, January 1 <br />114,163,857 <br />110,162,072 <br />4,001,785 <br />123,127,998 <br />118,915,796 <br />4,212,202 <br />Net position, December31 <br />$ 117,381,398 <br />$ 114,163,857 $ <br />3,217,541 <br />$ 127,934,361 <br />$ 123,127,998 $ <br />4,806,363 <br />• Property taxes represent approximately 45.0% of total revenues in 2022 in governmental activities. <br />• The largest revenue variance was an increase in capital grants and contributions due in part to <br />funding received through the Municipal Street Aid program. <br />• The largest expense variance was a decrease in the culture and recreation function as a result of <br />capital project work that was completed in 2021. <br />26 <br />