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Management's Discussion and Analysis
<br />
<br />As management of the City of Elk River, we offer readers of the City's financial statements this narrative overview and
<br />analysis of the financial activities of the City for the fiscal year ended December 31, 2003. We encourage readers to
<br />consider the information presented here in conjunction with the additional information that we have furnished in our
<br />letter of transmittal, which can be found on pages 1 - 4 of this report.
<br />
<br />Financial Highlights
<br />
<br />The assets of the City of Elk River exceeded its liabilities at the close of the most recent fiscal year by $146,342,640
<br />(net assets). Of this amount, $35,612,776 (unrestricted net assets) may be used to meet the City's ongoing obligations
<br />to citizens and creditors.
<br />
<br />The City's total net assets increased by $8,077,576.
<br />
<br />As of the close of the current fiscal year, the City of Elk River's governmental funds reported combined ending fund
<br />balances of $24,310,175.
<br />
<br /> Special Debt Capital
<br />General Revenue Service Projects Total
<br />
<br />Reserved $ 348,026 $ 6,493,930 $ 5,756,402 $ - $ t2,598,358
<br />Designated 3,384,023 2,234,112 5,185,673 10,803,808
<br />Undesignated - 1,508,132 (600,123) 908,009
<br />
<br />$ 3.732.049 $10,236,174 $ 5.756.40~2 $ 4.585.55_______~0$ 24.310.17~5
<br />
<br />The City of Elk River's total long-term liabilities increased by $499,640 during the current fiscal year, fxom
<br />$38,527,412 to $39,027,052.
<br />
<br />Governmental activities:
<br /> Bonds payable
<br /> Contract for deed
<br /> Compensated absences
<br />
<br />Beginning Ending
<br />Balance Additions Reductions Balance
<br />
<br />$ 23,344,150 $ 1,612,100 $(2,355,800) $ 22,600,450
<br />148,808 - (100,832) 47,976
<br />394,399 270,396 (244,568) 420,227
<br />
<br />Total governmental activities
<br />
<br />23,887,357 1,882,496 (2,701,200) 23,068,653
<br />
<br />Business-type activities:
<br />Bonds payable 11,550,000 1,995,000 (615,000) 12,930,000
<br />Notes payable 2,854,536 - (79,112) 2,775,424
<br />Compensated absences 235,519 40,573 (23,117) 252,975
<br />
<br />Total business-type activities
<br />
<br />14,640,055 2,035,573 (717,229) 15,958,399
<br />
<br />Total City long-term liabilities
<br />
<br />$ 38.527.41___.~2 $ 3:918.069 $ (3.418.429__._~ $ 39.027.05.~2
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<br />Overview of the Financial Statements
<br />
<br />This discussion and analysis are intended to serve as an introduction to the City of Elk River's basic financial
<br />statements. The City's basic financial statements comprise three components: 1) government-wide financial
<br />statements, 2) fund financial statements, and 3) notes to the financial statements. This report also contains other
<br />supplemental information in addition to the basic financial statements themselves.
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