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ELK RIVER MUNICIPAL UTILITIES
<br /> ELK RIVER,MINNESOTA
<br /> NOTES TO THE FINANCIAL STATEMENTS
<br /> DECEMBER 31,2015
<br /> Note 2: DETAILED NOTES ON ALL FUNDS-CONTINUED
<br /> Depreciation expense was charged to functions/programs of the Utilities as follows:
<br /> 2015
<br /> Business-type Activities
<br /> Water $ 1,131,110
<br /> Electric 1,922,359
<br /> Total depreciation expense-business-type activities $ 3,053,469
<br /> C. Long-term debt
<br /> General obligation revenue bonds
<br /> The City of Elk River issues general obligation bonds to provide funds for the acquisition and construction of major
<br /> capital facilities.The following bonds are to be paid out of Utilities'revenues and are backed by the full faith and credit
<br /> of the City.
<br /> Authorized Interest Issue Maturity Balance at
<br /> Description and Issued Rate Date Date Year End
<br /> G.O. Water Revenue
<br /> Refunding Bonds of 2008 $ 3,085,000 2.75-3.65 % 02/20/08 02/01/22 $ 1,695,000
<br /> G.O.Capital Improvement
<br /> Plan Bonds of 2010A 1,265,000 2.00-4.00 04/21/10 08/01/23 840,000
<br /> Total G.O.Revenue Bonds $ 2,535,000
<br /> The annual debt service requirements to maturity for the general obligation revenue bonds are as follows:
<br /> Year Ending
<br /> December 31, Principal Interest Total
<br /> 2016 $ 305,000 $ 84,333 $ 389,333
<br /> 2017 320,000 74,850 394,850
<br /> 2018 335,000 63,948 398,948
<br /> 2019 340,000 51,990 391,990
<br /> 2020 355,000 39,497 394,497
<br /> 2021-2023 880,000 40,997 920,997
<br /> Total $ 2,535,000 $ 355,615 $ 2,890,615
<br /> The G.O.revenue bonds were issued to finance capital improvements and are to be repaid from future revenues pledged
<br /> from the Water and Electric funds and are backed by the full faith and credit of the Utilities.
<br /> In 2015,annual principal and interest payment on the bonds required about 13 percent of revenues from the Water fund.
<br /> The principal and interest paid and total customer revenues for the Water fund were$295,079 and$2,202,537,
<br /> respectively.
<br /> In 2015,annual principal and interest payment on the bonds required about 0.3 percent of revenues from the Electric
<br /> fund. The principal and interest paid and total customer revenues for the Electric fund were$97,760 and$32,551,722,
<br /> respectively.
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