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CITY OF ELK RIVER, MINNESOTA
<br />MANAGEMENT'S DISCUSSION AND ANALYSIS
<br />YEAR ENDED DECEMBER 31, 2020
<br />Capital Assets at Year -End
<br />(Net of Accumulated Depreciation)
<br />Governmental Activities
<br />Business -Type
<br />Activities
<br />Total
<br />2020
<br />2019
<br />2020
<br />2019
<br />2020
<br />2019
<br />Land
<br />$ 40,769,513
<br />$ 40,946,181
<br />$ 1,844,071
<br />$ 1,843,977
<br />$ 42,613,584
<br />$ 42,790,158
<br />Construction in Progress
<br />2,586,460
<br />12,883,985
<br />1,209,742
<br />1,011,708
<br />3,796,202
<br />13,895,693
<br />Intangible Assets
<br />-
<br />-
<br />24,971,677
<br />24,114,139
<br />24,971,677
<br />24,114,139
<br />Buildings
<br />67,975,766
<br />44,997,927
<br />28,157,885
<br />27,372,648
<br />96,133,651
<br />72,370,575
<br />Other Improvements
<br />10,387,112
<br />6,557,771
<br />-
<br />-
<br />10,387,112
<br />6,557,771
<br />Infrastructure
<br />72,706,872
<br />71,116,985
<br />134,340,283
<br />130,506,501
<br />207,047,155
<br />201,623,486
<br />Equipment
<br />14,857,960
<br />14,298,469
<br />11,916,424
<br />11,625,356
<br />26,774,384
<br />25,923,825
<br />Total Capital Assets
<br />209,283,683
<br />190,801,318
<br />202,440,082
<br />196,474,329
<br />411,723,765
<br />387,275,647
<br />Less: Accumulated Depreciation
<br />(85,386,018)
<br />(84,966,178)
<br />(87,326,486)
<br />(81,316,024)
<br />(172,712,504)
<br />(166,282,202)
<br />Total Capital Assets, Net
<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 />Additional information on the City of Elk River's capital assets can be found in Note 5 starting on page
<br />52 of this report.
<br />Long -Term Debt. At the end of the current fiscal year, the City had total long-term debt outstanding of
<br />$118,863,707, an increase of $21,305,584 from 2019. General obligation improvement bonds
<br />($9,435,000) were issued to finance improvements to the public safety building and fire station #3.
<br />General obligation improvement refunding bonds ($5,340,000) were issued and will be used to refund
<br />and call the outstanding balance on the City's 2010A and 2012A bonds on February 1, 2021. General
<br />obligation sewer revenue refunding bonds ($7,200,000) were issued and will be used to crossover
<br />refund the City's 2014B General obligation sewer revenue bonds in 2022.
<br />Governmental Activities
<br />Business -Type Activities
<br />Total
<br />2020
<br />2019
<br />2020
<br />2019
<br />2020
<br />2019
<br />General Obligation Bonds
<br />$ 29,390,000
<br />$ 15,965,000
<br />$ -
<br />$ -
<br />$ 29,390,000 $
<br />15,965,000
<br />General Obligation Revenue Bonds
<br />32,165,000
<br />32,715,000
<br />16,010,000
<br />9,595,000
<br />48,175,000
<br />42,310,000
<br />Revenue Bonds
<br />-
<br />-
<br />18,985,000
<br />19,825,000
<br />18,985,000
<br />19,825,000
<br />Issuance Premium
<br />4,708,545
<br />3,511,113
<br />800,445
<br />818,036
<br />5,508,990
<br />4,329,149
<br />Total Bonds Payable, Net
<br />66,263,545
<br />52,191,113
<br />35,795,445
<br />30,238,036
<br />102,058,990
<br />82,429,149
<br />Notes Payable
<br />-
<br />-
<br />415,740
<br />619,692
<br />415,740
<br />619,692
<br />Compensated Absences
<br />1,710,968
<br />1,607,604
<br />542,294
<br />491,365
<br />2,253,262
<br />2,098,969
<br />Net Pension Liability
<br />8,670,701
<br />7,541,740
<br />4,294,798
<br />3,816,162
<br />12,965,499
<br />11,357,902
<br />Other Postemployment Benefits
<br />821,235
<br />740,405
<br />348,981
<br />312,006
<br />1,170,216
<br />1,052,411
<br />Total Outstanding Debt
<br />$ 77,466,449
<br />$ 62,080,862
<br />$ 41,397,258
<br />$ 35,477,261
<br />$ 118,863,707 $
<br />97,558,123
<br />Additional long-term debt in the amount of $415,740 is for notes payable, $2,253,262 is for
<br />compensated absences, $12,965,499 is for the City's net pension liability, and $1,170,216 is for the
<br />City's total other postemployment benefits liability.
<br />The City maintains a bond rating of AA+ from Standard & Poor's for general obligation debt.
<br />State statutes limit the amount of general obligation debt a Minnesota City may issue to 3% of total
<br />Estimated Taxable Market Value. The current debt limitation for the City of Elk River is $76,424,256.
<br />$19,165,251 of the City's net outstanding debt is counted within the statutory limitation.
<br />Additional information on the City of Elk River's long-term debt can be found in Note 7 starting on page
<br />55 of this report.
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