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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 /> Depreciation expense was charged to functions/programs of the Utilities as follows:
<br /> 2018
<br /> Business-type Activities
<br /> Electric $ 2,297,349
<br /> Water 1,193,745
<br /> Total Depreciation Expense- Business-type Activities $ 3,491,094
<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 capital
<br /> facilities. The following bonds are to be paid out of Utilities' revenues and are backed by the full faith and credit 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 $ 1,020,000
<br /> G.O. Capital Improvement
<br /> Plan Bonds of 2010A 1,265,000 2.00-4.00 04/21/10 02/01/23 555,000
<br /> Total G.O. Revenue Bonds $ 1,575,000
<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 /> 2019 $ 340,000 $ 51,990 $ 391,990
<br /> 2020 355,000 39,498 394,498
<br /> 2021 370,000 26,270 396,270
<br /> 2022 385,000 12,228 397,228
<br /> 2023 125,000 2,499 127,499
<br /> Total $ 1,575,000 $ 132,485 $ 1,707,485
<br /> In 2018, 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$99,360 and $38,779,905,
<br /> respectively.
<br /> In 2018, annual principal and interest payment on the bonds required about 11.9% percent of revenues from the Water
<br /> fund. The principal and interest paid and total customer revenues for the Water fund were$299,587 and $2,515,821,
<br /> respectively.
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