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CITY OF ELK RIVER
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2019
<br />As management of the City of Elk River (the City), we offer readers of the City's financial statements
<br />this narrative overview and analysis of the financial activities of the City for the fiscal year ended
<br />December 31, 2019. 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 $215,099,199 (net position). Of this
<br />amount, $47,686,085 (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 $5,410,886, including an increase of $2,840,254 in
<br />governmental activities, primarily attributable to general revenue grants and contributions and
<br />investment earnings, and an increase in business -type activities of $2,570,632, which is primarily
<br />attributable to revenues in excess of expenses of $2.6 million in the Electric fund due to a decrease in
<br />purchased power expenses.
<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 $57,018,186.
<br />Special
<br />Capital
<br />General
<br />Revenue
<br />Debt Service Projects
<br />Total
<br />Nonspendable
<br />$ 187,305
<br />$ 61,785
<br />$ - $ 232
<br />$ 249,322
<br />Restricted
<br />-
<br />1,400,965
<br />2,206,522 24,941,193
<br />28,548,680
<br />Committed
<br />5,928,741
<br />- 4,253,959
<br />10,182,700
<br />Assigned
<br />-
<br />1,570,549
<br />11,607,028
<br />13,177,577
<br />Unassigned
<br />7,684,153
<br />-
<br />- (2,824,246)
<br />4,859,907
<br />Total Net Position
<br />$ 7,871,458
<br />$ 8,962,040
<br />$ 2,206,522 $ 37,978,166
<br />$ 57,018,186
<br />The City of Elk River's total long-term liabilities increased $32,700,436 during the current fiscal year,
<br />from $52,447,374 to $85,147,810. This was primarily due to the issuance of the 2019A G.O. Sales Tax
<br />Revenue Bonds in governmental activities in the amount of $32,715,000, issued to finance the
<br />acquisition and betterment of certain recreational facility improvements, park improvements, trail
<br />improvements, and the dredging of Lake Orono.
<br />GOVERNMENTAL ACTIVITIES
<br />Bonds Payable
<br />Compensated Absences
<br />Tota I
<br />BUSINESS -TYPE ACTIVITIES
<br />Bonds Payable
<br />Notes Payable
<br />Compensated Absences
<br />Total
<br />Beginning Ending
<br />Balance Additions Reductions Balance
<br />$ 17,632,016
<br />1,579,967
<br />$ 19,211,983
<br />Beginning
<br />Balance
<br />$ 31,910,336
<br />820,608
<br />504,447
<br />$ 33,235,391
<br />$
<br />35,949,515
<br />645,048
<br />$
<br />36,594,563
<br />Additions
<br />234,099
<br />$
<br />234,099
<br />$ (1,390,418)
<br />(617,411)
<br />$ (2,007,829)
<br />Reductions
<br />$ (1,672,300)
<br />(200,916)
<br />(247,181)
<br />$ (2,120,397)
<br />$ 52,191,113
<br />1,607,604
<br />$ 53,798,717
<br />Ending
<br />Balance
<br />$ 30,238,036
<br />619,692
<br />491,365
<br />$ 31,349,093
<br />
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