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10
<br />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
<br />analysis of the financial activities of the City for the fiscal year ended December 31, 2017. We encourage readers to
<br />consider the information presented here in conjunction with the additional information that we have furnished in our
<br />letter of transmittal, which can be found on pages 1 - 3 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
<br />close of the most recent fiscal year by $204,775,121 (net position). Of this amount, $37,973,967 (unrestricted net
<br />position) may be used to meet the City’s ongoing obligations to citizens and creditors.
<br />The City’s total net position increased by $3,385,235, an increase of $1,211,188 in the governmental activities
<br />attributable to capital contributions and an increase of $2,174,047 in the business-type activities attributable to revenues
<br />in excess of expenses of $2.9 million in the Electric fund due to increased usage impacted by the additional territory
<br />acquisition.
<br />As of the close of the current fiscal year, the City of Elk River’s governmental funds reported combined ending fund
<br />balances of $29,112,913.
<br />Special Debt Capital
<br />General Revenue Service Projects Total
<br />Nonspendable 88,038$ -$ -$ -$ 88,038$
<br />Restricted - 1,374,722 1,608,880 120,594 3,104,196
<br />Committed - 7,216,091 - 3,138,557 10,354,648
<br />Assigned 356,174 - - 10,984,072 11,340,246
<br />Unassigned 6,853,298 - - (2,627,513) 4,225,785
<br />7,297,510$ 8,590,813$ 1,608,880$ 11,615,710$ 29,112,913$
<br />The City of Elk River’s total long-term liabilities decreased $12,310,763 during the current fiscal year, from
<br />$57,478,352 to $45,167,589.
<br />Beginning Ending
<br />Balance Additions Reductions Balance
<br />Governmental activities:
<br />Bonds payable 29,973,384$ -$ (10,726,072)$ 19,247,312$
<br />Compensated absences 1,494,429 710,917 (650,309) 1,555,037
<br />Total governmental activities 31,467,813 710,917 (11,376,381) 20,802,349
<br />Business-type activities:
<br />Bonds payable 24,321,331 - (1,406,625) 22,914,706
<br />Notes payable 1,214,076 - (195,216) 1,018,860
<br />Compensated absences 475,132 119,036 (162,494) 431,674
<br />Total business-type activities 26,010,539 119,036 (1,764,335) 24,365,240
<br />Total City long-term liabilities 57,478,352$ 829,953$ (13,140,716)$ 45,167,589$
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