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CITY OF ELK RIVER
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />ENDED DECEMBER 31, 2016
<br />The Pavement Management fund increased $1,040,854 due to the collection of franchise fees and
<br />intergovernmental revenues in excess of current year expenditures.
<br />Proprietary funds. The City of Elk River's proprietary funds provide the same type of information found
<br />in the government -wide statements, but in more detail.
<br />Unrestricted net position in the respective proprietary funds are Municipal Liquor - $3,487,225, Sewer -
<br />$3,267,800, Garbage - $391,463, Storm Water - $389,724, Electric - $9,829,270, and Water -
<br />$4,101,135. The Garbage fund net position decreased $145,575 due to an increase in garbage
<br />disposal fees and the Storm Water fund net position decreased $329,516 due mainly to transfers out
<br />and capital contributions to other funds. All other proprietary funds had increases in net position.
<br />General Fund Budgetary Highlights
<br />There was no difference between the original budget and the final budget for the General fund. Key
<br />factors are as follows:
<br />• Total revenue collections were 103% of budget. Other tax collections were $32,873 over
<br />budget, intergovernmental revenue collections were $228,827 over budget and fines and
<br />forfeits were $28,966 over budget.
<br />• Expenditures were under budget by $60,962 due mainly to lower than anticipated fuel
<br />costs and sound fiscal control by City departments.
<br />Capital Asset and Debt Administration **... N
<br />Capital Assets. The City of Elk River's investment in capital assets for its governmental and business
<br />type activities as of December 31, 2016, amounts to $205,625,669 (net of accumulated depreciation).
<br />This investment in capital assets includes land, buildings, improvements, equipment and infrastructure.
<br />The total increase in the City of Elk River's investment in capital assets for the current year was
<br />$11,732,243 or 6 percent.
<br />Major capital asset events during the current fiscal year included the following:
<br />• $900,000 in public safety equipment.
<br />• Completion of the $4.9 million 2015 street project.
<br />• Construction of $437,000 for the River's Edge Park expansion.
<br />• Construction continued on the wastewater treatment facility improvements incurring over $4.7
<br />million in 2016 and placing in service $15.4 million.
<br />• The electric system made a $9.4 million down payment on their buy -in to the power contract
<br />with Minnesota Municipal Power Agency.
<br />Governmental Activities Business -Type Activities Total
<br />2016 2015 2016 2015 2016 2015
<br />Land
<br />Intangible Assets
<br />Construction in Progress
<br />Buildings
<br />Other Improvements
<br />Infrastructure
<br />Equipment
<br />Total Capital Assets
<br />$ 40,876,833
<br />$ 40,876,833 $
<br />1,609,491
<br />$ 1,526,407
<br />$ 42,486,324 $
<br />42,403,240
<br />-
<br />-
<br />9,804,951
<br />-
<br />9,804,951
<br />-
<br />437,501
<br />3,602,680
<br />3,714,934
<br />13,745,714
<br />4,152,435
<br />17,348,394
<br />45,048,097
<br />45,048,097
<br />24,363,780
<br />19,525,901
<br />69,411,877
<br />64,573,998
<br />5,438,466
<br />5,393,304
<br />-
<br />-
<br />5,438,466
<br />5,393,304
<br />66,110,684
<br />62,627,885
<br />122,107,290
<br />117,851,862
<br />188,217,974
<br />180,479,747
<br />12,764,099
<br />11,989,388
<br />10,665,822
<br />4,408,461
<br />23,429,921
<br />16,397,849
<br />170,675,680 169,538,187 172,266,268 157,058,345 342,941,948 326,596,532
<br />Less: Accumulated Depreciation (72,764,861) (69,326,468) (64,551,418) (63,376,638) (137,316,279) (132,703,106)
<br />Total Capital Assets, Net S 97,910,819 S 100.211,719 S 107,714,850 S 93,681,707 $ 205,625,669 S 193,893,426
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