|
CITY OF ELK RIVER
<br /> MANAGEMENT'S DISCUSSION AND ANALYSIS
<br /> ENDED DECEMBER 31, 2016
<br /> Notes to Financial Statements. The notes provide additional information that is essential to a full
<br /> understanding of the data provided in the government-wide and fund financial statements. The notes to
<br /> the financial statements can be found starting on page 37 of this report.
<br /> Other Information. In addition to the basic financial statements and accompanying notes, this report
<br /> also presents certain required supplementary information concerning the City of Elk River's share of net
<br /> pension liabilities (assets) for defined benefits plans, schedules of contributions, and progress in
<br /> funding its obligation to provide pension and other postemployment benefits to its employees. Required
<br /> supplementary information can be found starting on page 74 of this report.
<br /> The combining statements referred to earlier in connection with nonmajor governmental funds are
<br /> presented immediately following the required supplementary information. Combining and individual
<br /> fund statements and schedules can be found starting on page 80 of this report.
<br /> Government-wide Financial Analysis
<br /> As noted earlier, net position may serve over time as a useful indicator of a government's financial
<br /> position. In the case of the City of Elk River, assets and deferred outflows of resources exceeded
<br /> liabilities and deferred inflows of resources by $201,389,885 at the close of the most recent fiscal year.
<br /> By far, the largest portion of the City of Elk River's net position (75%) reflects its investment in capital
<br /> assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those
<br /> assets that is still outstanding. The City of Elk River uses these capital assets to provide services to
<br /> citizens; consequently, these assets are not available for future spending. Although the City of Elk
<br /> River's investment in its capital assets is reported net of related debt, it should be noted that the
<br /> resources needed to repay this debt must be provided from other sources, since the capital assets
<br /> themselves cannot be used to liquidate these liabilities.
<br /> Governmental Activities Business-Type Activities Total
<br /> 2016 2015 2016 2015 2016 2015
<br /> Current and Other Assets $ 41,740,557 $ 46,019,412 $ 33,038,957 $ 34,093,281 $ 74,779,514 $ 80,112,693
<br /> Capital Assets 97,910,819 100,211,719 107,714,850 93,681,707 205,625,669 193,893,426
<br /> Total Assets 139,651,376 146,231,131 140,753,807 127,774,988 280,405,183 274,006,119
<br /> Deferred Outflows of Resources 11,703,328 1,974,440 2,118,984 454,331 13,822,312 2,428,771
<br /> Noncurrent Liabilities Outstanding 39,193,948 44,557,234 29,692,408 20,816,200 68,886,356 65,373,434
<br /> Other Liabilities 13,189,478 2,338,153 7,862,145 4,980,591 21,051,623 7,318,744
<br /> Total Liabilities 52,383,426 46,895,387 37,554,553 25,796,791 89,937,979 72,692,178
<br /> Deferred Inflows of Resources 2,276,632 2,433,266 622,998 690,460 2,899,630 3,123,726
<br /> Net Position:
<br /> Net Investment in Capital Assets 78,119,790 75,030,579 82,230,963 76,747,269 160,350,753 151,777,848
<br /> Restricted 11,990,647 3,675,588 997,660 490,500 12,988,307 4,166,088
<br /> Unrestricted 6,584,209 20,170,751 21,466,617 24,504,299 28,050,826 44,675,050
<br /> Total Net Position $ 96,694,646 $ 98,876,918 $104,695,240 $101,742,068 $ 201,389,886 $ 200,618,986
<br /> An additional portion of the City of Elk River's net position (6.4%) represents resources that are subject
<br /> to external restrictions on how they may be used. The remaining balance of unrestricted net position
<br /> ($28,050,825) may be used to meet the City of Elk River's ongoing obligations to citizens and creditors.
<br /> (15)
<br />
|