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CITY OF ELK RIVER, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2020
<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, 2020. 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 $229,077,868 (net position). Of this
<br />amount, $46,045,541 (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 $13,978,669, including an increase of $8,308,259 in
<br />governmental activities, primarily attributable to sales taxes and operating and capital grants and
<br />contributions, and an increase in business -type activities of $5,670,410, which is primarily attributable
<br />to revenues in excess of expenses of $4 million in the Electric fund.
<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 $58,504,345.
<br />Nonspendable
<br />Restricted
<br />Committed
<br />Assigned
<br />Unassigned
<br />Total Net Position
<br />Special
<br />General Revenue
<br />282,860
<br />Capital
<br />Debt Service Projects Total
<br />- $ 16 $ 282,876
<br />1,404,656 9,299,633 15,546,193 26,250,482
<br />5,893,257 - 5,812,249 11,705,506
<br />- 1,641,501 - 13,308,918 14,950,419
<br />7,967,868 - - (2,652,806) 5,315,062
<br />$ 8,250,728 $ 8,939,414 $ 9,299,633 $ 32,014,570 $ 58,504,345
<br />The City of Elk River's total long-term liabilities increased $19,580,182 during the current fiscal year,
<br />from $85,147,810 to $104,727,992. This was primarily due to the issuance of the 2020B G.O. CIP
<br />Refunding Bonds and the 2020C G.O. Sewer Revenue Refunding Bonds. The bonds do not qualify as
<br />in -substance defeasances until 2021 and 2022, respectively. As such both the refunded bonds and new
<br />refunding bonds are outstanding at year-end. The City also issued $9,435,000 in G.O. Capital
<br />Improvement Bonds, Series 2020A, to finance projects included in the City's capital improvement plan,
<br />including improvements to the public safety building and fire station #3.
<br />Beginning
<br />Ending
<br />GOVERNMENTAL ACTIVITIES
<br />Balance
<br />Additions
<br />Reductions
<br />Balance
<br />Bonds Payable
<br />$
<br />52,191,113
<br />$
<br />16,139,913
<br />$
<br />(2,067,481)
<br />$
<br />66,263,545
<br />Compensated Absences
<br />1,607,604
<br />747,583
<br />(644,219)
<br />1,710,968
<br />Total
<br />$
<br />53,798,717
<br />$
<br />16,887,496
<br />$
<br />(2,711,700)
<br />$
<br />67,974,513
<br />Beginning
<br />Ending
<br />BUSINESS -TYPE ACTIVITIES
<br />Balance
<br />Additions
<br />Reductions
<br />Balance
<br />Bonds Payable
<br />$
<br />30,238,036
<br />$
<br />7,234,705
<br />$
<br />(1,677,296)
<br />$
<br />35,795,445
<br />Notes Payable
<br />619,692
<br />-
<br />(203,952)
<br />415,740
<br />Compensated Absences
<br />491,365
<br />496,934
<br />(446,005)
<br />542,294
<br />Total
<br />$
<br />31,349,093
<br />$
<br />7,731,639
<br />$
<br />(2,327,253)
<br />$
<br />36,753,479
<br />
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