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ELK RIVER MUNICIPAL UTILITIES
<br />ELK RIVER, MINNESOTA
<br />NOTES TO FINANCIAL STATEMENTS
<br />DECEMBER 31, 2008 AND 2007
<br />Note 2: DETAILED NOTES ON ALL FUNDS -CONTINUED
<br />Depreciation expense was charged to functions/programs of the Utilities as follows:
<br />Business-type Activities
<br />Water
<br />Electric
<br />2008 2007
<br />$ 974,848 $ 921,450
<br />2,057,851 1,920,798
<br />Total depreciation expense -business-type activities $ 3,032,699 $ 2,842,248
<br />C. Long-term Debt
<br />G.O. Revenue and Refunding Bonds
<br />The City of Elk River issues general obligation bonds to provide funds for the acquisition and construction of major
<br />capital facilities. The following bonds are to be paid out of Utilities' revenues and are backed by the full faith and
<br />credit of the City.
<br /> Authorized Interest Issue Maturity December 31, December 31,
<br />Description and Issued Rate Date Date 2008 2007
<br />G.O. Water Revenue
<br />Refunding Bonds of 2008 $ 3,085,000 2.50-3.65 % 02/20/08 02/01/22 $ 3,085,000 $ -
<br />G.O. Water Revenue
<br />Bonds of 1998B 820,000 4.50-5.00 12/01/98 02/01/14 - 450,000
<br />G.O Water Revenue
<br />Bonds of2001A 3,590,000 4.40-5.40 10/O1/Ol 02/01/22 2,880,000 3,020,000
<br />G.O. City Hall Expansion
<br />Bonds of 2002B 1,695,000 3.50-5.00 09/01/02 02/01/23 1,405,000 1,465,000
<br />G.O. Water Revenue
<br />Bonds of 2003B 1,995,000 3.00-3.70 12/09/03 02/01/14 1,290,000 1,475,000
<br />Total G.O. Revenue Bonds $ 8.660.000 $ 6.410,000
<br />The annual requirements to amortize the general obligation revenue bonds as of December 31, 2008 are as follows:
<br />Year Ending
<br />December 31, Principal Interest Total
<br />
<br />2009 $ 475,000 $ 327,763 $ 802,763
<br />2010 490,000 311,451 801,451
<br />2011 690,000 291,633 981,633
<br />2012 720,000 268,058 988,058
<br />2013 760,000 242,478 1,002,478
<br />2014-2018 2,875,000 856,384 3,731,384
<br />2019-2023 2,650,000 257,388 2,907,388
<br />Total $ 8,660,000 $ 2,555,155 $ 11,215,155
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