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Elk River Municipal Utilities
<br />Elk River, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2019
<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 fairvalue 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, 2019was as follows:
<br />BeginningEnding
<br />BalanceIncreasesDecreasesBalance
<br />Capital Assets not
<br />being Depreciated
<br />Land$678,921$-$-$678,921
<br />Intangible23,279,955834,184-24,114,139
<br />Construction in progress467,4702,058,365(1,514,127)1,011,708
<br />Total Capital Assets
<br />not being Depreciated24,426,3462,892,549(1,514,127)25,804,768
<br />Capital Assets being Depreciated
<br />Land improvements23,389--23,389
<br />Buildings3,917,32827,066-3,944,394
<br />Machinery and equipment3,969,945375,809(187,039)4,158,715
<br />Infrastructure85,787,5441,686,064(201,642)87,271,966
<br />Total Capital Assets
<br />being Depreciated93,698,2062,088,939(388,681)95,398,464
<br />Less Accumulated
<br />Depreciation for
<br />Intangible(165,883)(668,134)-(834,017)
<br />Land improvements(18,195)(936)-(19,131)
<br />Buildings(2,041,840)(110,649)-(2,152,489)
<br />Machinery and equipment(2,396,004)(316,374)150,467(2,561,911)
<br />Infrastructure(40,917,958)(2,907,314)187,178(43,638,094)
<br />Total Accumulated
<br />Depreciation(45,539,880)(4,003,407)337,645(49,205,642)
<br />Total Capital Assets
<br />being Depreciated, Net48,158,326(1,914,468)(51,036)46,192,822
<br />Business-type Activities
<br />Capital Assets, Net$72,584,672$978,081$(1,565,163)$71,997,590
<br />36
<br />126
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