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CITY OF ELK RIVER
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2019
<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 83 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 95 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 $215,099,199 at the close of the most recent fiscal year.
<br />By far, the largest portion of the City of Elk River's net position (76%) reflects its investment in capital
<br />assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those
<br />assets that is still outstanding. The City of Elk River uses these capital assets to provide services to
<br />citizens; consequently, these assets are not available for future spending. Although the City of Elk
<br />River's investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Governmental Activities
<br />Business -Type Activities
<br />Total
<br />2019
<br />2018
<br />2019
<br />2018
<br />2019
<br />2018
<br />Current and Other Assets
<br />$ 65,755,084
<br />$ 35,189,365
<br />$ 39,855,455
<br />$ 35,963,873
<br />$ 105,610,539
<br />$ 71,153,238
<br />Capital Assets
<br />105,835,140
<br />94,574,550
<br />115,158,305
<br />117,800,871
<br />220,993,445
<br />212,375,421
<br />Total Assets
<br />171,590,224
<br />129,763,915
<br />155,013,760
<br />153,764,744
<br />326,603,984
<br />283,528,659
<br />Deferred Outflows of Resources
<br />4,757,778
<br />6,294,084
<br />411,293
<br />828,823
<br />5,169,071
<br />7,122,907
<br />Noncurrent Liabilities Outstanding
<br />59,536,643
<br />27,502,045
<br />33,202,304
<br />37,166,952
<br />92,738,947
<br />64,668,997
<br />Other Liabilities
<br />8,743,380
<br />1,758,155
<br />8,157,881
<br />5,689,316
<br />16,901,261
<br />7,447,471
<br />Total Liabilities
<br />68,280,023
<br />29,260,200
<br />41,360,185
<br />42,856,268
<br />109,640,208
<br />72,116,468
<br />Deferred Inflows of Resources
<br />6,214,166
<br />7,784,239
<br />819,482
<br />1,062,545
<br />7,033,648
<br />8,846,784
<br />Net Position:
<br />Net Investment in Capital Assets
<br />78,288,782
<br />77,092,055
<br />84,327,032
<br />85,104,737
<br />162,615,814
<br />162,196,792
<br />Restricted
<br />3,741,368
<br />4,236,048
<br />1,261,359
<br />1,261,359
<br />5,002,727
<br />5,497,407
<br />Unrestricted
<br />19,823,663
<br />17,685,456
<br />27,656,995
<br />24,308,658
<br />47,480,658
<br />41,994,114
<br />Total Net Position
<br />$ 101,853,813
<br />$ 99,013,559
<br />$ 113,245,386
<br />$ 110,674,754
<br />$ 215,099,199
<br />$ 209,688,313
<br />An additional portion of the City of Elk River's net position (2.2%) represents resources that are subject
<br />to external restrictions on how they may be used. The remaining balance of unrestricted net position
<br />($47,686,085) may be used to meet the City of Elk River's ongoing obligations to citizens and creditors.
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