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Management's Discussion and Analysis -Continued
<br />Apri17, 2008
<br />CAPITAL ASSETS
<br />The Utilities' investment in capital assets for its business-type activities as of December 31, 2007, amounts to $53,490,290 (net of
<br />accumulated depreciation). This investment in capital assets includes land, buildings and improvements and equipment. A table
<br />summarizing the balances by fund follows:
<br />2007
<br />2006
<br />Increase
<br />(Decrease)
<br />Land $ 211,236 $ 211,236 $ -
<br />Landimprovements 29,001 3],527 (2,526)
<br />Buildings 2,574,423 2,663,539 (89,116)
<br />Construction in progress 1,834,485 1,584,495 249,990
<br />Machinery and equipment 1,332,337 1,482,851 (150,514)
<br />Infrastructure 47,508,808 45,186,988 2,321,820
<br />Total $ 53,490,290 $ 51,160,636 $ 2,329,654
<br />The total increase in the Utilities' investment in capital assets for the current fiscal year was 4.5 percent. The increase was mainly
<br />due to capital projects.
<br />Additional information on the Utilities' capital assets can be found in Note 2B on page 19 - 20 of this report.
<br />LONG-TERM DEBT
<br />At year end, the Utilities had $16,364,054 in long-term debt up from $14,531,820 in fisca12006. More detailed information about
<br />the Utilities' long-term liabilities is presented in the Notes to the Financial Statements on pages 20 - 22 and below:
<br />Increase
<br />2007 2006 (Decrease)
<br />G.O. revenue bonds $ 6,410,000 $ 6,880,000 $ (470,000)
<br />Revenue bonds 7,075,000 4,460,000 2,615,000
<br />G.O. equipment certificates - 125,000 (125,000)
<br />Promissory note 2,879,054 3,066.820 (187,766)
<br />Total
<br />$ 16,364,054 $ 14,531,820 $ 1,832,234
<br />CONTACTING THE UTILITIES FINANCIAL MANAGER
<br />This financial report is designed to provide our citizens, customers, investors and creditors with a general overview of the
<br />Utilities' finances and to demonstrate the Utilities' accountability for the money it receives. Questions concerning any of the
<br />information provided in this report or requests for additional financial information should be addressed to Theresa Slominski, Elk
<br />River Municipal Utilities, 13069 Orono Parkway, Elk River, Minnesota 55330.
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