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CITY OF RAMSEY Management’s Discussion and Analysis Year Ended December 31, 2023 As management of the City of Ramsey, Minnesota (the City), we have provided readers of the City’s financial statements with this narrative overview and analysis of the financial activities of the City for the fiscal year ended December 31, 2023. The discussion and analysis is intended to be considered in conjunction with the additional information that we have furnished in our letter of transmittal, located earlier in this report, and the City’s financial statements contained within this report. FINANCIAL HIGHLIGHTS x The City’s assets and deferred outflows of resources exceeded its liabilities and deferred inflows of resources at December 31, 2023 by $228,451,915 (net position). x Government-wide revenues totaled $46,992,378 and were $13,259,187 more than expenses. x As of the close of the current fiscal year, the City’s governmental funds reported a combined ending fund balance of $64,704,872, an increase of $3,268,356 from the prior fiscal year, largely due to the increase in investment earnings due to a higher rate of return. x At the end of the current fiscal year the General Fund equity balance of $12,265,915 included $28,616 of nonspendable fund balance and $12,237,299 of unassigned fund balance. OVERVIEW OF THE FINANCIAL STATEMENTS Management’s Discussion and Analysis (MD&A) is intended to serve as an introduction to the City’s basic financial statements, which are comprised of three components: 1) government-wide financial statements, 2) fund financial statements, and 3) notes to basic financial statements. This report also contains other information in addition to the basic financial statements themselves. Government-Wide Financial Statements – The government-wide financial statements are designed to provide readers with a broad overview of the City’s finances, in a manner similar to private sector businesses. The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred inflows/outflows, as applicable, (excluding Fiduciary Funds), with the difference reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City is improving or deteriorating. The Statement of Activities presents information showing how the City’s net position changed during the most recent fiscal year. All changes in net position are reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in future fiscal periods (e.g., delinquent taxes and special assessments). Both of the government-wide financial statements distinguish functions of the City that are principally supported by property taxes and intergovernmental revenues (governmental activities) from other functions that are intended to recover all or a significant portion of their costs through user fees and charges (business-type activities). The governmental activities include general government, public safety, highways and streets, culture and recreation, and economic development. The business-type activities of the City include enterprises for water, sewer, street light, recycling, and storm water utilities. 27