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Elk River Municipal Utilities
<br /> Elk River, Minnesota
<br /> Notes to the Financial Statements
<br /> December 31, 2018
<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, 2018 was as follows:
<br /> Beginning Ending
<br /> Balance Increases Decreases Balance
<br /> Capital Assets not
<br /> being Depreciated
<br /> Land $ 678,921 $ - $ - $ 678,921
<br /> Intangible 10,375,677 12,904,278 - 23,279,955
<br /> Construction in progress 736,872 3,118,367 (3,387,769) 467,470
<br /> Total Capital Assets
<br /> not being Depreciated 11,791,470 16,022,645 (3,387,769) 24,426,346
<br /> Capital Assets being Depreciated
<br /> Land improvements 23,389 - - 23,389
<br /> Buildings 3,849,603 67,725 - 3,917,328
<br /> Machinery and equipment 3,722,909 265,364 (18,328) 3,969,945
<br /> Infrastructure 83,142,914 2,677,882 (33,252) 85,787,544
<br /> Total Capital Assets
<br /> being Depreciated 90,738,815 3,010,971 (51,580) 93,698,206
<br /> Less Accumulated
<br /> Depreciation for
<br /> Intangible - (165,883) - (165,883)
<br /> Land improvements (17,260) (935) - (18,195)
<br /> Buildings (1,918,520) (123,320) - (2,041,840)
<br /> Machinery and equipment (2,124,715) (289,617) 18,328 (2,396,004)
<br /> Infrastructure (38,018,910) (2,911,339) 12,291 (40,917,958)
<br /> Total Accumulated
<br /> Depreciation (42,079,405) (3,491,094) 30,619 (45,539,880)
<br /> Total Capital Assets
<br /> being Depreciated, Net 48,659,410 (480,123) (20,961) 48,158,326
<br /> Business-type Activities
<br /> Capital Assets, Net $ 60,450,880 $ 15,542,522 $ (3,408,730) $ 72,584,672
<br /> 36
<br /> 123
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