Note Receivable and Customers' Advances for Construction

12 Months Ended

Dec. 31, 2024

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 $158 in 2024 and $192 in 2023. The interest rate on the note outstanding is 7.5%.

Included in the accompanying balance sheets at December 31, 2024 and 2023 were the following amounts related to this project.

	2024		2023
Note receivable, including interest	$	255	$	255
Customers’ advances for construction		172		205

The Company has other customers’ advances for construction totaling $20,374 and $18,648 at December 31, 2024 and 2023, respectively.