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<br />Management's Discussion and Analysis
<br />
<br />As management of the City of Elk River, we offer readers of the City's financial statements this narrative overview and
<br />analysis of the financial activities of the City for the fiscal year ended December 31, 2005 . We encourage readers to
<br />consider the information presented here in conjunction with the additional information that we have furnished in our letter
<br />of transmittal, which can be found on pages 1 - 4 of this report.
<br />
<br />Financial Highlights
<br />
<br />The assets ofthe City of Elk River exceeded its liabilities at the close of the most recent fiscal year by $175,618,989 (net
<br />assets). Of this amount, $33,224,623 (unrestricted net assets) may be used to meet the City's ongoing obligations to
<br />citizens and creditors.
<br />
<br />The City's total net assets increased by $11,796,489, which is primarily due to contribution of capital assets.
<br />
<br />As of the close of the current fiscal year, the City of Elk River's governmental funds reported combined ending fund
<br />balances of $29,912,904.
<br />
<br />General
<br />
<br />Special
<br />Revenue
<br />
<br />Debt
<br />Service
<br />
<br />Capital
<br />Projects
<br />
<br />Total
<br />
<br />Reserved
<br />Designated
<br />Undesignated
<br />
<br />$ 210,298
<br />4,391,083
<br />
<br />$ 4,880,170
<br />3,666,256
<br />1,786,805
<br />
<br />$ 6,595,667
<br />
<br />$
<br />8,528,524
<br />(145,899)
<br />
<br />$ 11,686,135
<br />16,585,863
<br />1,640,906
<br />
<br />$ 4,601,381
<br />
<br />$ 10,333,231
<br />
<br />$ 6,595,667
<br />
<br />$ 8,382,625
<br />
<br />$ 29,912,904
<br />
<br />The City of Elk River's total long-term liabilities increased $1,153,492 during the current fiscal year, from $35,273,735 to
<br />$36,427,227.
<br />
<br /> Beginning Ending
<br /> Balance Additions Reductions Balance
<br />Governmental activities:
<br />Bonds payable $ 20,436,967 $ 1,715,000 $ (2,174,266) $ 19,977,701
<br />Compensated absences 465,634 313,667 (298,205) 481,096
<br />Total governmental activities 20,902,601 2,028,667 (2,472,4 71) 20,458,797
<br />Business-type activities:
<br />Bonds payable 11,425,000 2,860,000 (1,150,000) 13,135,000
<br />Notes payable 2,663,145 (124,919) 2,538,226
<br />Compensated absences 282,989 38,933 (26,718) 295,204
<br />Total business-type activities 14,371,134 2,898,933 (1,301,637) 15,968,430
<br />Total City long-term liabilities $ 35.273.735 $ 4.927.600 $ 0.774.108) $ 36.427.227
<br />Overview of the Financial Statements
<br />
<br />This discussion and analysis are intended to serve as an introduction to the City of Elk River's basic fmancial statements.
<br />The City's basic financial statements comprise three components: I) government-wide fmancial statements, 2) fund
<br />financial statements, and 3) notes to the fmancial statements. This report also contains other supplemental information in
<br />addition to the basic financial statements themselves.
<br />
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