Note Receivable and Customers' Advances for Construction

12 Months Ended

Dec. 31, 2023

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 that could be used to settle the note receivable 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 $192 in 2023 and $194 in 2022. The interest rate on the note outstanding is 7.5%.

Included in the accompanying balance sheets at December 31, 2023 and 2022 were the following amounts related to this project.

	2023		2022
Note receivable, including interest	$	255	$	255
Customers’ advances for construction		205		243

The Company has other customers’ advances for construction totaling $18,648 and $14,668 at December 31, 2023 and 2022, respectively.