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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
<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%.
<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 $ 40,876,833 $ 40,876,833 $ 1,609,491 $ 1,526,407 $ 42,486,324 $ 42,403,240
<br /> Intangible Assets - - 9,804,951 - 9,804,951 -
<br /> Construction in Progress 437,501 3,602,680 3,714,934 13,745,714 4,152,435 17,348,394
<br /> Buildings 45,048,097 45,048,097 24,363,780 19,525,901 69,411,877 64,573,998
<br /> Other Improvements 5,438,466 5,393,304 - - 5,438,466 5,393,304
<br /> Infrastructure 66,110,684 62,627,885 122,107,290 117,851,862 188,217,974 180,479,747
<br /> Equipment 12,764,099 11,989,388 10,665,822 4,408,461 23,429,921 16,397,849
<br /> Total Capital Assets 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 $ 100,211,719/ S 107,714,850 S 93.681.707 S 205,625,669 S 193,893,426
<br /> (20)
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