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<br />31
<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 $47,749,298, an increase of $4,964,053 in comparison with the prior year.
<br />Approximately 16% of this total amount ($7,631,324) constitutes unassigned fund balance, which is
<br />available for spending at the City’s discretion. The remainder of fund balance ($40,117,928) is not
<br />available for new spending because it is either 1) nonspendable ($206,913), 2) restricted
<br />($16,800,972), 3) committed ($10,166,249), or 4) assigned ($12,943.840) for the purposes described
<br />in the fund balance section of each balance sheet.
<br />
<br />2024 2023
<br />Increase
<br />(Decrease)
<br />General 9,538,493$ 9,323,318$ 215,175$
<br />Pavement Management 5,513,936$ 3,273,427$ 2,240,509$
<br />Fund Balance December 31,
<br />Major Funds
<br />The General Fund is the chief operating fund of the City. The General Fund had an increase in fund balance of
<br />$215,175. The fund had net transfers of $2,544,757 during the year, which contributed to the increase.
<br />The Pavement Management Fund is a major capital projects fund with a total fund balance of $5,513,936.
<br />Fund balance increased $2,240,509 from 2023 due to no major street improvement projects occurring in 2024.
<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 $33,704,904. The total increase in net position
<br />for the funds was $3,612,576.
<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 $215,175 in 2024. Some of the larger
<br />variances are as follows:
<br />
<br />• Revenues were over budget by $232,712 with charges for services revenue being over budget
<br />by $122,809. Intergovernmental revenues were over budget by $262,230.
<br />• Expenditures were under budget by $95,186 in part due to public works being under budget by
<br />$504,986 based on salaries and benefits and fuel and snow removal costs coming in under
<br />anticipated amounts.
<br />Page 221 of 637
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