Ely city officials got largely good news Tuesday, when the results of an annual audit where shared.
Accountant Tom Kelly of Virginia firm Walker, Giroux and Hahne ran through the audit findings during Tuesday’s regular council session.
He delivered what he termed was a “clean” opinion on the audit.
“That means the books are in good shape and that’s what you’re looking for,” said Kelly. “That’s a good start.”
City fund balances also remain in strong position, with both cash balances and fund balances climbing.
Overall, the city’s fund balance stood at just over $5.1 million at the end of 2024, compared ot $4,413,852 12 months earlier.
Cash balances also shot up from $3,768,931 to 44,534,966.
“(The balances) are healthy, a nd h ave b een healthy for years,” said Kelly.
Kelly said it was notable that 97% of the city’s general fund balance is unassigned.
“That’s good and meant that the general fund is in good healthy shape,” said Kelly.
While the city’s capital projects fund showed a negative balance of about $138,000 at the end of 2024, Kelly softened the blow by noting that there were grants receivable of roughly $1.25 million.
“Grants for projects are mostly reimbursement based and you have to spend it, then you get it back,” said Kelly.
For the year, general fund revenues jumped by seven percent, due primarily to an increase in local government aid from the state of Minnesota.
The general fund reported revenues of $4,351,836 last year, with expenditures reaching $4,009,305.
The surplus was much larger than an approximately $60,000 total the year before.
Total expenses with all funds were $9,180,565, which were more than offset by revenues of $9,696,878.
The healthy financial picture extended to Ely’s utility operation.
While the water enterprise fund posted a small operating loss with $864,084 in expenses and $828,941, the sewer and electric funds were profitable.
Sewer revenues were $1,168,674 compared to expenses of $1,158,307, while the electric fund posted a $147,000 net gain, with $3,758,730 in revenues compared to $3,611,152 in expenses.
“These are business type funds and they all should be self-sufficient or at least be breaking even and the good news is they all pretty much did that,” said Kelly.
Overall, the general fund budget showed positive variances, with revenues ahead of projections and expenditures not as large.
