5.2. SR 06-06-2011 - Laserfiche WebLink

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CITY OF ELK RIVER, MINNESOTA ' NOTES TO FINANCIAL STATEMENTS DECEMBER 31, 2010 ' Note 4: OTHER INFORMATION -CONTINUED ' G. Segment Information The City maintains five enterprise funds that account for the municipal liquor operations, garbage collections, and sewer, ' water and electric utilities. The City considers each of its enterprise funds to be a segment. Since the required segment information is already included in the City's proprietary funds' balance sheet and statement of revenues, expenses, and changes in net assets balance, this information has not been repeated in the notes to the basic financial statements. H. Conduit Debt Obligations ' From time to time, the City has issued revenue bonds to provide financial assistance to private-sector entities for the acquisition and construction of industrial and commercial, multi-family and educational facilities deemed to be in the ' public interest. The bonds are secured by the property financed and are payable solely from payment received from the benefited entity. Neither the City, the State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds. Accordingly, the bonds are not reported as liabilities in the accompanying financial statements. ' As of December 31, 2010, there were six series of revenue bonds outstanding, with an aggregate principal payable amount of $22,304,634. ' I. Commitments In 2007 the City entered into an agreement to participate through Central Minnesota Municipal Power Agency ' (CMMPA) and five other energy companies to construct power transmission lines in Minnesota, the largest portion of which consists of 220 miles of new power transmission lines between Brookings, South Dakota, and the Twin Cities. The CAPX Initiative is one of several transmission projects arising from the CAPX2020 Initiative, the purpose of which , is to enhance the reliability of electrical power transmission for customers in Minnesota and the surrounding region. The City is one of sixteen participants in the CAPX Initiative. The City's participant election share is $2 million for a participant election of 15.15 percent. ' J. Subsequent Events On March 14, 20] 1, the City approved to increase its participation in the acquisition, construction, ownership and ' operation of the electrical transmission line proposed to run from South Dakota to the Twin Cities. The City's investment in the CAPX2020 Brookings-Twin Cities Transmission Project and financing with Central Minnesota Municipal Power Agency (CMMPA) increased from $2 million up to $7.1 million. The return on this increased , investment through CMMPA is designed to provide approximately $124,000 annually over the 40 year project life. i 0 r 64 '