Notes Receivable and Customers' Advances for Construction

12 Months Ended

Dec. 31, 2017

Notes Receivable and Customers' Advances for Construction [Abstract]

Notes Receivable and Customers' Advances for Construction

9. Notes 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 $98 in 2017, $100 in 2016 and $110 in 2015.  The interest rate on the note outstanding at December 31, 2017 is 7.5%.

Included in the accompanying balance sheets at December 31, 2017 and 2016 were the following amounts related to this project.

	2017		2016
Notes receivable, including interest	$	255	$	255
Customers' advances for construction		306		307

The Company has other customers' advances for construction totaling $6,018 and $6,795 at December 31, 2017 and 2016, respectively.