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Exhibit 4-B <br />2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 <br />OPERATING REVENUES <br />Charges for services 2,613,812$ 3,049,140$ 2,887,276$ 3,305,148$ 2,803,602$ 3,053,746$ 3,176,063$ 3,299,836$ 3,432,811$ 3,568,850$ <br />Connection maintenance 56,931 71,520 75,365 55,733 72,409 63,500 65,000 65,000 65,000 65,000 <br />Customer penalties 3,801 - 26,194 23,118 31,102 28,000 35,000 35,000 35,000 35,000 <br />Total Operating Revenues 2,674,544$ 3,120,660$ 2,988,835$ 3,383,999$ 2,907,113$ 3,145,246$ 3,276,063$ 3,399,836$ 3,532,811$ 3,668,850$ <br />OPERATING EXPENSES <br />Production 502,748$ 674,815$ 681,079$ 667,881$ 780,844$ 807,150$ 793,000$ 816,790$ 841,294$ 866,533$ <br />Distribution 251,259 412,534 307,192 321,566 462,083 520,410 498,125 513,069 528,461 544,315 <br />Services to City 463 1,259 540 - - 2,000 2,000 2,000 2,000 2,000 <br />Depreciation 1,133,179 1,139,802 1,117,357 1,174,752 1,223,033 1,325,866 1,415,000 1,528,317 1,576,161 1,907,449 <br />Customer accounts 66,509 72,213 81,285 88,640 96,615 105,250 104,250 107,378 110,599 113,917 <br />General and administrative 719,527 844,475 980,528 943,138 1,006,969 1,211,950 1,315,595 1,355,063 1,395,715 1,437,587 <br />Total Operating Expenses 2,673,685$ 3,145,098$ 3,167,981$ 3,195,977$ 3,569,544$ 3,972,626$ 4,127,970$ 4,322,616$ 4,454,230$ 4,871,800$ <br />OPERATING INCOME 859$ (24,438)$ (179,146)$ 188,022$ (662,431)$ (827,380)$ (851,907)$ (922,780)$ (921,419)$ (1,202,950)$ <br />NON-OPERATING REVENUE (EXPENSE) <br />Interest income 33,454$ 24,677$ (30,592)$ 57,360$ 104,286$ 151,000$ 126,000$ 127,883$ 143,854$ 143,427$ <br />Miscellaneous revenue 262,311 292,330 424,994 418,451 429,016 418,100 473,350 473,350 473,350 473,350 <br />Interest expense and other (23,516) (65,296) (40,948) (36,444) (33,949) (31,466) (28,782) (33,800) (31,000) (28,000) <br />New debt interest - - - (166,400) (332,800) <br />Gain (Loss) on sale of capital assets 3,507 (662) (9,150) 2,940 (5,090) 8,000 4,000 4,000 4,000 4,000 <br />Total Non-Operating Revenues (Expenses)275,756$ 251,049$ 344,304$ 442,307$ 494,263$ 545,634$ 574,568$ 571,433$ 423,804$ 259,977$ <br />Income before Contributions and Transfers 276,615$ 226,611$ 165,158$ 630,329$ (168,168)$ (281,746)$ (277,340)$ (351,347)$ (497,615)$ (942,973)$ <br />Connection Fees 595,482$ 548,948$ 1,547,930$ 253,341$ 477,998$ 255,000$ 366,000$ 500,000$ 500,000$ 500,000$ <br />Contributions from Developers 477,194 552,920 940,306 - - <br />Contributions from Customers - - - - 21,910 - - - - - <br />Transfers from/(to) Other City Funds - 195,245 - 1,348,943 - - (63,521) (65,997) (68,656) (71,377) <br />Grants - 3,288 - - - - - - - - <br />CHANGE IN NET POSITION 1,349,291$ 1,527,012$ 2,653,394$ 2,232,613$ 331,740$ (26,746)$ 25,139$ 82,656$ (66,271)$ (514,350)$ <br />As Percent of Revenues 50.4%48.9%88.8%66.0%11.4%-0.9%0.8%2.4%-1.9%-14.0% <br />UNRESTRICTED CASH RESERVES <br />Beginning of Year 10,500,000$ 7,070,639$ 7,176,282$ 8,072,522$ <br />Plus Change in Net Position 25,139 82,656 (66,271) (514,350) <br />Plus Depreciation 1,415,000 1,528,317 1,576,161 1,907,449 <br />Interfund Borrowing (1,400,000) 1,400,000 <br />Plus Debt Proceeds - - 8,000,000 - <br />Less Debt Principal (70,000) (70,000) (75,000) (75,000) <br />Less New Debt Principal - - - (279,400) <br />Less Capital Improvements (3,399,500) (1,435,330) (9,938,650) (1,062,650) <br />End of Year(1)9,961,189$ 10,500,000$ 7,070,639$ 7,176,282$ 8,072,522$ 8,048,571$ <br />Reserve goal 12,719,919$ 12,750,828$ 12,951,869$ 13,416,604$ 13,488,199$ <br />Percent of goal 83%55%55%60%60% <br />(1) 2025 EOY reserve balance estimated by ERMU staff based on 2025 YTD actual results. <br />Projected <br />Elk River Municipal Utilities <br />Water Operating Results at Proposed Rates <br />Historical <br />page 1 of 1