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Section 2
<br />ERMU currently has outstanding electric debt pursuant to a 2010 bond issue related to
<br />the Elk River City Hall expansion, a 2016 electric bond issue and a 2018 electric bond
<br />issue. It is assumed the electric utility will participate with the water utility in a new $13.59
<br />millionbond issue in 2021related to expansion of the ERMU field service facilities. The
<br />debt payments for$12,231,000 ofthat issue have been allocated to the electric utility.
<br />Projected Operating Results Existing Rates
<br />Based on the assumptions outlined above, the resulting projected operating results
<br />assuming continued application of the existing retail rates are summarizedin Table 2-3
<br />for the electric utility. A summary presentation of the operating results is shown in Exhibit
<br />2-A. The results below are provided as an indication of revenue needs in the future.
<br />
<br />
<br />
<br />Year
<br />20202021202220232024
<br />Operating Revenues $37,990,288 $37,990,288 $37,990,288 $37,990,288 $37,990,288
<br />Less Operating
<br />(35,480,019) (36,070,782) (37,020,347) (37,586,795) (38,141,864)
<br />Expenses
<br />Plus Non -Operating
<br /> (79,079) (92,791) (679,534) (489,326) (456,653)
<br />Revenues (Expenses)
<br />Less City Transfers (1,365,000) (1,365,000) (1,365,000) (1,365,000) $(1,365,000)
<br />Change in Net Position $1,066,189 $461,714 $(1,074,594) $(1,450,833) $(1,973,230)
<br />Net Position as
<br />2.8% 1.2% -2.8% -3.8% -5.2%
<br />Percent of Revenues
<br />-6-
<br />150
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