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Elk River Municipal Utilities
<br />Elk River, Minnesota
<br />Notes to the Financial Statements
<br />December 31, 2023
<br />Note 2: Detailed Notes on All Funds (Continued)
<br />Depreciation expense was charged to functions/programs of the Utilities as follows:
<br />2023
<br />Business -type Activities
<br />Electric $ 3,177,120
<br />Water 1,174,752
<br />Total Depreciation Expense - Business -type Activities $ 4,351,872
<br />Construction Commitment
<br />The Utilities had the following outstanding construction commitment as of December 31, 2023:
<br />Project
<br />Field Service Project - RJM Construction
<br />D. Long-term Debt
<br />General Obligation Revenue Bonds
<br />Spent Remaining
<br />to Date Commitment
<br />$ 12,315,837 $ 7,934
<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
<br />City.
<br />Description
<br />G.O. Water Revenue
<br />Bonds, Series 2021 C
<br />Authorized Interest Issue Maturity Balance at
<br />and Issued Rate Date Date Year End
<br />1,615,000 2.00 - 4.00 % 06/10/21 08/01/41 $ 1,505,000
<br />The annual debt service requirements to maturity for the general obligation revenue bonds are as follows:
<br />Year Ending
<br />December 31,
<br />Principal
<br />Interest Total
<br />2024
<br />$ 60,000 $
<br />41,600
<br />$ 101,600
<br />2025
<br />65,000
<br />39,200
<br />104,200
<br />2026
<br />70,000
<br />36,600
<br />106,600
<br />2027
<br />70,000
<br />33,800
<br />103,800
<br />2028
<br />75,000
<br />31,000
<br />106,000
<br />2029 - 2033
<br />405,000
<br />110,300
<br />515,300
<br />2034 - 2038
<br />460,000
<br />57,900
<br />517,900
<br />2039 - 2041
<br />300,000
<br />12,000
<br />312,000
<br />Total
<br />$ 1,505,000 $
<br />362,400
<br />$ 1,867,400
<br />In 2023, annual principal and interest payment on the bonds required about 3.1 percent of revenues from the Water fund
<br />The principal and interest paid and total customer revenues for the Water fund were $104,000 and $3,383,999,
<br />respectively.
<br />39
<br />104
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