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CITY OF ELK RIVER
<br /> MANAGEMENT'S DISCUSSION AND ANALYSIS
<br /> ENDED DECEMBER 31, 2016
<br /> As management of the City of Elk River, we offer readers of the City's financial statements this
<br /> narrative overview and analysis of the financial activities of the City for the fiscal year ended
<br /> December 31, 2016. We encourage readers to consider the information presented here in conjunction
<br /> with the additional information that we have furnished in our letter of transmittal, which can be found on
<br /> pages 1 - 4 of this report.
<br /> Financial Highlights
<br /> The assets and deferred outflows of resources of the City of Elk River exceeded its liabilities and
<br /> deferred inflows at the close of the most recent fiscal year by $201,389,885 (net position). Of this
<br /> amount, $28,050,825 (unrestricted net position) may be used to meet the City's ongoing obligations to
<br /> citizens and creditors.
<br /> The City's total net position increased by $770,899, the net of a decrease of $2,187,272 in
<br /> governmental activities, primarily attributable to the use of existing fund balance for capital acquisition
<br /> and an increase in business-type activities of $2,953,172, which is primarily attributable to revenues in
<br /> excess of expenses of $2.4 million in the Electric fund due to increased usage impacted by the
<br /> additional territory acquisition.
<br /> As of the close of the current fiscal year, the City of Elk River's governmental funds reported combined
<br /> ending fund balances of$38,334,630.
<br /> Special Capital
<br /> General Revenue Debt Service Projects Total
<br /> Nonspendable $ 20,964 $ 108,176 $ - $ $ 129,140
<br /> Restricted - 1,405,144 10,840,535 12,245,679
<br /> Committed - 5,438,226 - 3,811,788 9,250,014
<br /> Assigned 266,832 1,338,446 11,294,502 12,899,780
<br /> Unassigned 6,470,281 - - (2,660,264) 3,810,017
<br /> Total Net Position $ 6,758,077 $ 8,289,992 $ 10,840,535 $ 12,446,026 $ 38,334,630
<br /> The City of Elk River's total long-term liabilities increased $3,469,298 during the current fiscal year,
<br /> from $54,009,054 to $57,478,352.
<br /> Beginning Ending
<br /> GOVERNMENTAL ACTIVITIES Balance Additions Reductions Balance
<br /> Bonds Payable $ 33,714,456 $ - $ (3,741,072) $ 29,973,384
<br /> Contracts for Deeds 1,410,000 - (1,410,000) -
<br /> Compensated Absences 1,466,238 587,837 (559,646) 1,494,429
<br /> Total 36,590,694 587,837 (5,710,718) 31,467,813
<br /> Beginning Ending
<br /> BUSINESS-TYPE ACTIVITIES Balance Additions Reductions Balance
<br /> Bonds Payable $ 15,585,234 $ 11,630,525 $ (2,894,428) $ 24,321,331
<br /> Notes Payable 1,408,368 - (194,292) 1,214,076
<br /> Compensated Absences 424,758 194,008 (143,634) 475,132
<br /> Total 17,418,360 11,824,533 (3,232,354) 26,010,539
<br /> (12)
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