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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 O.N ALL FUNDS -CONTINUED
<br />The Utilities issued $3,085,000 of G.O. Water Revenue Refunding Bonds to provide resources for the current
<br />refunding on May 1, 2008 of $395,000 of the G.O. Water Revenue Bonds, Series 1998B and the advance refunding
<br />of $2,575,000 of the G.O. Water Revenue Bonds, Series 2001A, which will be redeemed on February 1, 2010. The
<br />City will continue to pay, as due, principal and interest on the Series 2001A Bonds at the rates and amounts specified
<br />to the call date (February 1, 2010). The refunded bonds will be called and paid by the Escrow Account. The
<br />transaction resulted in a reduction of $120,378 of future debt service payments, which is a present value savings of
<br />$82,990.
<br />Revenue Bonds
<br />The following bonds were issued to finance capital improvements in the Electric fund. They will be retired from net
<br />revenues of the fund.
<br /> Authorized
<br />Description and Issued
<br />Electric Revenue
<br />Bonds, Series 2004A $ 940,000
<br />Electric Revenue
<br />Bonds, Series 2006A 3,595,000
<br />Electric Revenue
<br />Bonds, Series 2007A 2,875,000
<br />Total Revenue Bonds
<br />Interest Issue Maturity December 31, December 31,
<br />Rate Date Date 2008 2007
<br />3.50-4.25 % 08/01/04 02/01/15 $ 700,000 $ 785,000
<br />3.30-4.00 03/02/06 08/01/21 3,225,000 3,415,000
<br />4.00 03/28/07 02/01/22 2,875,000 2,875,000
<br />$ 6,800,000 $ 7,075,000
<br />The annual requirements to amortize the revenue bonds as of December 31, 2008 are as follows:
<br />Year Ending
<br />December 31, Principal Interest Total
<br />2009 $ 280,000 $ 260,208 $ 540,208
<br />2010 460,000 247,085 707,085
<br />2011 480,000 229,784 709,784
<br />2012 495,000 211,434 706,434
<br />2013 520,000 192,358 712,358
<br />2014-2018 2,590,000 661,172 3,251,172
<br />2019-2022 1,975,000 160,965 2,135,965
<br />Total $ 6,800,000 $ 1,963,006 $ 8,763,006
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