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CITY OF ELK RIVER, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2020
<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 84 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 98 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 $229,077,868 at the close of the most recent fiscal year.
<br />By far, the largest portion of the City of Elk River's net position (72%) reflects its investment in capital
<br />assets (e.g., land, buildings, machinery, and equipment) less any related debt used to acquire those
<br />assets that is still outstanding. The City of Elk River uses these capital assets to provide services to
<br />citizens; consequently, these assets are not available for future spending. Although the City of Elk
<br />River's investment in its capital assets is reported net of related debt, it should be noted that the
<br />resources needed to repay this debt must be provided from other sources, since the capital assets
<br />themselves cannot be used to liquidate these liabilities.
<br />Governmental Activities
<br />Business -Type
<br />Activities
<br />Total
<br />2020
<br />2019
<br />2020
<br />2019
<br />2020
<br />2019
<br />Current and Other Assets
<br />$ 67,567,102
<br />$ 65,755,084
<br />$ 51,144,716
<br />$ 39,855,455
<br />$ 118,711,818
<br />$ 105,610,539
<br />Capital Assets
<br />123,897,665
<br />105,835,140
<br />115,113,596
<br />115,158,305
<br />239,011,261
<br />220,993,445
<br />Total Assets
<br />191,464,767
<br />171,590,224
<br />166,258,312
<br />155,013,760
<br />357,723,079
<br />326,603,984
<br />Deferred Outflows of Resources
<br />3,017,320
<br />4,757,778
<br />462,666
<br />411,293
<br />3,479,986
<br />5,169,071
<br />Noncurrent Liabilities Outstanding
<br />68,935,002
<br />59,536,643
<br />39,023,106
<br />33,202,304
<br />107,958,108
<br />92,738,947
<br />Other Liabilities
<br />11,807,143
<br />8,743,380
<br />8,553,380
<br />8,157,881
<br />20,360,523
<br />16,901,261
<br />Total Liabilities
<br />80,742,145
<br />68,280,023
<br />47,576,486
<br />41,360,185
<br />128,318,631
<br />109,640,208
<br />Deferred Inflows of Resources
<br />3,577,870
<br />6,214,166
<br />228,696
<br />819,482
<br />3,806,566
<br />7,033,648
<br />Net Position:
<br />Net Investment in Capital Assets
<br />78,477,651
<br />78,288,782
<br />86,155,217
<br />84,327,032
<br />164,632,868
<br />162,615,814
<br />Restricted
<br />17,138,100
<br />3,741,368
<br />1,261,359
<br />1,261,359
<br />18,399,459
<br />5,002,727
<br />Unrestricted
<br />14,546,321
<br />19,823,663
<br />31,499,220
<br />27,656,995
<br />46,045,541
<br />47,480,658
<br />Total Net Position
<br />$ 110,162,072
<br />$ 101,853,813
<br />$ 118,915,796
<br />$ 113,245,386
<br />$ 229,077,868
<br />$ 215,099,199
<br />An additional portion of the City of Elk River's net position (8%) represents resources that are subject to
<br />external restrictions on how they may be used. The remaining balance of unrestricted net position
<br />($46,045,541) may be used to meet the City of Elk River's ongoing obligations to citizens and creditors.
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