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<br />City of Elk River
<br />Management’s Discussion and Analysis
<br />
<br />
<br />GOVERNMENT-WIDE FINANCIAL ANALYSIS (CONTINUED)
<br />
<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 />
<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
<br />the City’s financing requirements. In particular, unrestricted fund balance may serve as a useful
<br />measure of a government’s net resources available for spending at the end of the fiscal year.
<br />
<br />As of the end of the current fiscal year, the City’s governmental funds reported combined ending
<br />fund balances of $42,785,245, an increase of $263,062 in comparison with the prior year.
<br />Approximately 18% of this total amount ($7,596,889) constitutes unassigned fund balance, which is
<br />available for spending at the City’s discretion. The remainder of fund balance ($35,188,356) is not
<br />available for new spending because it is either 1) nonspendable ($214,251), 2) restricted
<br />($15,918,585), 3) committed ($7,291,361), or 4) assigned ($11,764,159) for the purposes described in
<br />the fund balance section of each balance sheet.
<br />
<br />Increase
<br />2023 2022 (Decrease)
<br />General 9,323,318$ 8,888,888$ 434,430$
<br />Pavement Management 3,273,427$ 6,274,764$ (3,001,337)$
<br />The Pavement Management Fund is a major capital projects
<br /> fund with a total fund balance of $3,273,427. Fund balance
<br /> decreased $3,001,337 from 2022 due to increased street
<br /> improvement projects during the year.
<br />Fund Balance December 31,
<br />Major Funds
<br />The General Fund is the chief operating fund of the City.
<br /> The General Fund had an increase in fund balance of
<br /> $434,430. The fund had net transfers of $2,728,500
<br /> during the year, which contributed to the increase.
<br />
<br />Proprietary Funds. The City’s proprietary funds provide the same type of information found in the
<br />government-wide financial statements, but in more detail. Unrestricted net position of the
<br />enterprise funds at the end of the year amounted to $34,557,899. The total increase in net position
<br />for the funds was $5,728,390.
<br />
<br />General Fund Budgetary Highlights
<br />The City’s General Fund budget was not amended during the year. The budget called for no change
<br />in fund balance. The General Fund had an actual increase of $434,430 in 2023. Some of the larger
<br />variances are as follows:
<br />
<br /> Revenues were over budget by $163,036 with charges for services revenue being over budget by
<br />$83,608. Investment income was over budget by $82,618.
<br /> Expenditures were under budget by $271,394, in part due to culture and recreation being under
<br />budget by $233,797 based on salaries and benefits coming in under anticipated amounts.
<br />Page 152 of 464
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