Note Receivable and Customers' Advances for Construction

12 Months Ended

Dec. 31, 2019

Note Receivable and Customers' Advances for Construction [Abstract]

Note Receivable and Customers' Advances for Construction

4.  Note Receivable and Customers' Advances for Construction

The Company entered into an agreement with a municipality to extend water service into a previously formed water district.  The Company loaned funds to the municipality to cover the costs related to the project.  The municipality concurrently advanced these funds back to the Company in the form of customers' advances for construction.  The municipality is required by enacted ordinance to charge application fees and water revenue surcharges (fees) to customers connected to the system, which are remitted to the Company.  The note principal and the related customer advance are reduced periodically as operating revenues are earned by the Company from customers connected to the system and refunds of the advance are made.  There is no due date for the notes or expiration date for the advance.

The Company recorded interest income of $121 in 2019 and $105 in 2018.  The interest rate on the note outstanding is 7.5%.

Included in the accompanying balance sheets at December 31, 2019 and 2018 were the following amounts related to this project.

	2019		2018
Note receivable, including interest	$	255	$	255
Customers' advances for construction		303		305

The Company has other customers' advances for construction totaling $7,541 and $6,544 at December 31, 2019 and 2018, respectively.