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Elk River Municipal Utilities
<br />Elk River, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2021
<br />
<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
<br />undue concentration of assets in any one type of instrument. As of December 31, 2021 the Utilities has invested
<br />5.0 percent or more of its total investment portfolio in the following issuers: Capital One National Association VA
<br />US (11.2 percent), Morgan Stanley Bank UT US (6.6 percent), New York Community Bank NY US (6.3 percent),
<br />Texas Exchange Bank TX US (6.3 percent), Institution for SV MA US (6.3 percent), BMO Harris Bank NA IL US (6.3
<br />percent), Sallie Mae Bank UT US (6.3 percent), JPMorgan Chase Bank OH US (6.3 percent), Celtic Bank UT US (6.3
<br />percent), and Comenity Bank DE US (5.1 percent).
<br />
<br />Interest Rate Risk. Is the risk that changes in interest rates will adversely affect the fair value of an investment.
<br />a specific maturity sector.
<br />
<br />B.Capital Assets
<br />Capital asset activity for the year ended December 31, 2021 was as follows:
<br />BeginningEnding
<br />BalanceIncreasesDecreasesBalance
<br />Capital Assets not
<br />being Depreciated
<br />Land$ 679,015$ 179,229$ -$ 858,244
<br />Intangible 24,971,677 924,188 - 25,895,865
<br />Construction in progress 1,209,742 9,425,944 (3,392,088) 7,243,598
<br />Total Capital Assets
<br />not being Depreciated 26,860,434 10,529,361 (3,392,088) 33,997,707
<br />Capital Assets being Depreciated
<br />Land improvements 23,389 10,692 - 34,081
<br />Buildings 4,729,631 32,970 (225,365) 4,537,236
<br />Machinery and equipment 4,449,783 485,435 (257,728) 4,677,490
<br />Infrastructure 90,214,698 4,801,759 (8,277) 95,008,180
<br />Total Capital Assets
<br />being Depreciated 99,417,501 5,330,856 (491,370) 104,256,987
<br />Less Accumulated
<br />Depreciation for
<br />Intangible (1,502,152) (668,135) - (2,170,287)
<br />Land improvements (20,066) (1,411) - (21,477)
<br />Buildings (2,272,335) (125,640) 46,137 (2,351,838)
<br />Machinery and equipment (2,675,198) (382,131) 160,617 (2,896,712)
<br />Infrastructure (46,550,884) (2,920,170) 7,284 (49,463,770)
<br />Total Accumulated
<br />Depreciation (53,020,635) (4,097,487) 214,038 (56,904,084)
<br />Total Capital Assets
<br />being Depreciated, Net 46,396,866 1,233,369 (277,332) 47,352,903
<br />Business-type Activities
<br />Capital Assets, Net$ 73,257,300$ 11,762,730$ (3,669,420) $ 81,350,610
<br />36
<br />108
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