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23 <br />City of Elk River <br />Management’s Discussion and Analysis <br />OVERVIEW OF THE FINANCIAL STATEMENTS (CONTINUED) <br />Because the focus of governmental funds is narrower than that of the government-wide financial <br />statements, it is useful to compare the information presented for governmental funds with similar <br />information presented for governmental activities in the government-wide financial statements. By <br />doing so, readers may better understand the long-term impact by the government’s near-term <br />financing decisions. Both the governmental fund balance sheet and the governmental fund statement <br />of revenues, expenditures and changes in fund balances (deficits) provide a reconciliation to <br />facilitate this comparison between governmental funds and governmental activities. <br />The City maintains several individual governmental funds, five of which are Debt Service funds. <br />Information is presented separately in the governmental fund balance sheet and in the governmental <br />fund statement of revenues, expenditures, and changes in fund balances for the General Fund and <br />Pavement Management, which are considered to be major funds. Data from the other governmental <br />funds are combined into a single, aggregated presentation. Individual fund data for each of these <br />nonmajor governmental funds is provided in the form of combining statements or schedules <br />elsewhere in this report. <br />The City adopts an annual appropriated budget for its General, Library, Multipurpose Facility, and <br />Economic Development Funds. A budgetary comparison statement or schedule has been provided for <br />these funds to demonstrate compliance with this budget. <br />The basic governmental fund financial statements start on page 40 of this report. <br />Proprietary Funds. The City maintains one type of proprietary funds. Enterprise funds are used to <br />report the same functions presented as business-type activities in the government-wide financial <br />statements. The City uses enterprise funds to account for its liquor, sewer, garbage, storm water, <br />electric, and water operations. <br />Proprietary funds provide the same type of information as the government-wide financial <br />statements, only in more detail. The proprietary funds financial statements provide separate <br />information for each of the enterprise funds which are considered to be major funds of the City. <br />The basic proprietary funds financial statements start on page 46 of this report. <br />Notes to the Basic Financial Statements. The notes provide additional information that is essential <br />to a full understanding of the data provided in the government-wide and fund financial statements. <br />The notes to basic financial statements start on page 57 of this report. <br />Required Supplementary Information. In addition to the basic financial statements and <br />accompanying notes, this report also presents certain Required Supplementary Information <br />concerning the City of Elk River’s share of net pension liabilities for defined benefit plans, schedule <br />of contributions, and progress in funding its obligation to provide pension and other postemployment <br />benefits to its employees. Required Supplementary Information can be found starting on page 104 of <br />this report. <br />Page 144 of 464