|
Total Expenses. In reviewing total expenses in Table A-2 you will notice that there was an increase of 4.9 percent
<br /> overall, with the electric department increasing 5.9 percent, and the water department decreasing 6.7 percent. Purchased
<br /> Power is the biggest electric department expense and it was up 5.1 percent.
<br /> Capital Assets and Debt Administration
<br /> Capital Assets.The Utilities' investment in capital assets for its business-type activities as of December 31, 2018
<br /> amounts to$72,584,672 (net of accumulated depreciation). This investment in capital assets includes land, buildings,
<br /> improvements and equipment. A table summarizing the balances by fund follows:
<br /> Increase
<br /> 2018 2017 (Decrease)
<br /> Land $ 678,921 $ 678,921 $ -
<br /> Intangible 23,114,072 10,375,677 12,738,395
<br /> Land Improvements 5,194 6,129 (935)
<br /> Buildings 1,875,488 1,931,083 (55,595)
<br /> Machinery and Equipment 1,573,941 1,598,194 (24,253)
<br /> Infrastructure 44,869,586 45,124,004 (254,418)
<br /> Construction in Progress 467,470 736,872 (269,402)
<br /> Total $ 72,584,672 $ 60,450,880 $ 12,133,792
<br /> The total increase in the Utilities' investment in capital assets for the current fiscal year was 20.1 percent.
<br /> Major capital asset events during the current fiscal year included the following:
<br /> • The Electric Department completed the MMPA membership buy-in increasing Intangibles.
<br /> • The Electric Department makes a loss of revenue payment as part of the cost of the territory acquisition, also
<br /> increasing Intangibles.
<br /> • The Electric and Water Department purchased new transportation equipment increasing Machinery and
<br /> Equipment, however the depreciation of prior assets was greater than the purchases, resulting in an overall
<br /> decrease.
<br /> • The Water Department had depreciation of prior year assets greater than assets purchased for Building and
<br /> Infrastructure, resulting in an overall decrease.
<br /> • Construction in progress decreased as projects started in the previous year were completed in 2018.
<br /> Additional information on the Utilities' capital assets can be found in Note 2B starting on page 36 of this report.
<br /> Long-term Debt.At year end, the Utilities had $23,950,944 in long-term debt which increased from $14,738,566 in fiscal
<br /> 2017. The increase is due to the additional bonding issued in 2018 for the MMPA membership buy-in (referenced above
<br /> in Intangible Assets). More detailed information about the Utilities' long-term liabilities can be found in Note 2C starting on
<br /> page 37 and below:
<br /> Increase
<br /> 2018 2017 (Decrease)
<br /> G.O. Revenue Bonds $ 1,575,000 $ 1,910,000 $ (335,000)
<br /> Revenue Bonds 20,685,000 11,325,000 9,360,000
<br /> Unamortized Premium on Bonds 870,336 484,706 385,630
<br /> Promissory Note 820,608 1,018,860 (198,252)
<br /> Total $ 23,950,944 $ 14,738,566 $ 9,212,378
<br /> 19
<br /> 106
<br />
|