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Elk River Municipal Utilities
<br /> Elk River, Minnesota
<br /> Notes to the Financial Statements
<br /> December 31, 2017
<br /> Note 2: Detailed Notes on All Funds (Continued)
<br /> • Concentration of Credit Risk. Is the risk of loss attributed to the magnitude of a government's investment in a
<br /> single issuer. According to their investment policy the Utilities' portfolio maturities shall be staggered to avoid
<br /> undue concentration of assets in any one type of instrument.
<br /> • Interest Rate Risk. Is the risk that changes in interest rates will adversely affect the fair value of an investment.
<br /> According to their investment policy the Utilities'will stagger maturities to avoid undue concentration of assets at a
<br /> specific maturity sector.
<br /> B. Capital Assets
<br /> Capital asset activity for the year ended December 31, 2017 was as follows:
<br /> Beginning Ending
<br /> Balance Increases Decreases Balance
<br /> Capital Assets not
<br /> being Depreciated
<br /> Land $ 444,435 $ 234,486 $ - $ 678,921
<br /> Intangible 9,804,951 570,726 - 10,375,677
<br /> Construction in progress 1,218,350 4,196,615 (4,678,093) 736,872
<br /> Total Capital Assets
<br /> not being Depreciated 11,467,736 5,001,827 (4,678,093) 11,791,470
<br /> Capital Assets being Depreciated
<br /> Land improvements 23,389 - - 23,389
<br /> Buildings 3,932,733 136,764 (219,894) 3,849,603
<br /> Machinery and equipment 3,581,095 204,365 (62,551) 3,722,909
<br /> Infrastructure 79,057,635 4,094,021 (8,742) 83,142,914
<br /> Total Capital Assets
<br /> being Depreciated 86,594,852 4,435,150 (291,187) 90,738,815
<br /> Less Accumulated
<br /> Depreciation for
<br /> Land improvements (16,324) (936) - (17,260)
<br /> Buildings (1,803,621) (119,938) 5,039 (1,918,520)
<br /> Machinery and equipment (1,909,560) (277,706) 62,551 (2,124,715)
<br /> Infrastructure (35,182,303) (2,840,249) 3,642 (38,018,910)
<br /> Total Accumulated
<br /> Depreciation (38,911,808) (3,238,829) 71,232 (42,079,405)
<br /> Total Capital Assets
<br /> being Depreciated, Net 47,683,044 1,196,321 (219,955) 48,659,410
<br /> Business-type Activities
<br /> Capital Assets, Net $ 59,150,780 $ 6,198,148 $ (4,898,048) $ 60,450,880
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