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Management's Discussion and Analysis
<br />As management of the City of Elk River, we offer readers of the City's financial statements this narrative overview and analysis of the
<br />financial activities of the City for the fiscal year ended December 31, 2015. We encourage readers to consider the information
<br />presented here in conjunction with the additional information that we have furnished in our letter of transmittal, which can be found on
<br />pages 5 - 7 of this report.
<br />Financial Highlights
<br />The assets and deferred outflows of resources of the City of Elk River exceeded its liabilities and deferred inflows at the close of the
<br />most recent fiscal year by $200,618,986 (net position). Of this amount, $44,675,050 (unrestricted net position) may be used to meet
<br />the City's ongoing obligations to citizens and creditors.
<br />The City's total net position increased by $8,906,787, attributable to capital contributions of $2.7 million in the Sewer fund and Water
<br />funds as well as a gain on sale of capital assets in governmental activities of $2.8 million.
<br />As of the close of the current fiscal year, the City of Elk River's governmental funds reported combined ending fund balances of
<br />$41,112,019.
<br />Special
<br />General Revenue
<br />Debt Capital
<br />Service Projects Total
<br />Nonspendable
<br />$ 23,676
<br />$ 103,295
<br />$ -
<br />$ -
<br />$ 126,971
<br />Restricted
<br />7,000
<br />1,812,499
<br />10,932,083
<br />457,918
<br />13,209,500
<br />Committed
<br />376,943
<br />5,329,017
<br />-
<br />2,770,934
<br />8,476,894
<br />Assigned
<br />-
<br />1,359,646
<br />-
<br />14,219,878
<br />15,579,524
<br />Unassigned
<br />6,157,179
<br />-
<br />-
<br />(2,438,049)
<br />3,719,130
<br />Total City long-term liabilities
<br />$ 6,564,798
<br />$ 8,604,457
<br />$ 10,932,083
<br />$ 15,010,681
<br />$ 41,112,019
<br />The City of Elk River's total long-term liabilities
<br />increased $8,255,255 during the current fiscal year, from $57,118,179 to
<br />$65,373,434.
<br />Beginning
<br />Ending
<br />Balance
<br />Additions
<br />Reductions
<br />Balance
<br />Governmental activities
<br />Bonds payable
<br />$ 35,270,528
<br />$ -
<br />$ (1,556,072)
<br />$ 33,714,456
<br />Contracts for deeds
<br />1,410,000
<br />-
<br />-
<br />1,410,000
<br />Compensated absences
<br />1,504,686
<br />565,922
<br />(604,370)
<br />1,466,238
<br />Net pension liability
<br />-
<br />8,744,979
<br />(1,155,382)
<br />7,589,597
<br />Net OPEB obligation
<br />317,929
<br />11,700
<br />47,314
<br />376,943
<br />Total governmental activities
<br />38,503,143
<br />9,322,601
<br />(3,268,510)
<br />44,557,234
<br />Business -type activities
<br />Bonds payable
<br />16,503,233
<br />-
<br />(917,999)
<br />15,585,234
<br />Notes payable
<br />1,599,876
<br />-
<br />(191,508)
<br />1,408,368
<br />Compensated absences
<br />410,814
<br />144,380
<br />(130,436)
<br />424,758
<br />Net pension liability
<br />-
<br />3,810,879
<br />(533,387)
<br />3,277,492
<br />Net OPEB obligation
<br />101,113
<br />17,909
<br />1,326
<br />120,348
<br />Total business -type activities
<br />18,615,036
<br />3,973,168
<br />(1,772,004)
<br />20,816,200
<br />Total City long-term liabilities
<br />$ 57,118,179
<br />$ 13,295,769
<br />$ (5,040,514)
<br />$ 65,373,434
<br />-17-
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