METROPOLITAN UTILITIES DISTRICT

Notes to Basic Financial Statements

December 31, 2022 and 2021 diversified in an attempt to reduce the overall risk of the portfolios. The investment policy statements of the pension and OPEB plans limit the amount invested in a single investment security to 5 percent of the total portfolio, with the exception of investments guaranteed by the U.S. government. The investment policy statements also limit the amount invested in a single investment pool or company (mutual fund) to 20 percent of the total portfolio, with the exception of passively-managed investment vehicles seeking to match the returns on a broadly-diversified market index.

Rate of return: For the years ended December 31, 2022 and 2021, the annual money weighted rate of return on pension plan investments, net of pension plan investment expense was -17.1% and 13.7%, respectively. For the years ended December 31, 2022 and 2021, the annual money weighted rate of return on OPEB plan investments, net of OPEB plan expense was -17.0% and 14.8%, respectively. The money weighted rate of return expresses investment performance, net of investment expense, adjusted for the changing amounts actually invested.

Asset allocation: The investment policy statements of the pension and OPEB plans have the following asset allocation ranges permitted and the long-term expected geometric real rate of return for each major asset class:

Target Allocation

Mutual funds may be used for these asset classes. Investments in mutual funds are not subject to concentration of credit risk.

Custodial credit risk: The custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g., broker-dealer) to a transaction, a government will not be able to recover the value of its investment or collateral securities that are in the possession of another party. The District and the pension and OPEB plans do not have a policy for custodial credit risk. As of December 31, 2022 and 2021, the District’s investments were not exposed to custodial credit risk because they were registered in the District’s name and held by the counterparty or the counterparty’s trust department. The mutual funds (equity and debt funds) of the pension and OPEB plans are not exposed to custodial credit risk.

Metropolitan Utilities District

Notes to Basic Financial Statements

December 31, 2022 and 2021

(4) Capital Assets

Utility plant at December 31, 2022 and 2021 is summarized as follows:

The provision for depreciation/amortization expense is as follows:

The depreciation/amortization expense presented above includes a reduction of expense of $8,879,223 and $8,395,917 for the year ended December 31, 2022 and 2021, respectively, due to the amortization of CIAC.

Metropolitan Utilities District

Notes to Basic Financial Statements

December 31, 2022 and 2021

Capital asset activity for the year ended December 31, 2022 and 2021 is as follows:

Metropolitan Utilities District

Notes to Basic Financial Statements

December 31, 2022 and 2021

(5) Lease Receivable

The District leases cell phone tower space and land to others. These leases have terms between forty years and fifty years with payments required monthly or annually.

The total amount of inflows of resources recognized for the periods ending December 31, are as follows:

Metropolitan Utilities District

Notes to Basic Financial Statements

December 31, 2022 and 2021

(6) Long-Term Obligations

Activity in long-term obligations for the year ended December 31, 2022 and 2021 is as follows: Balance, beginning Balance, of year, endDue within as restatedIncreasesDecreasesof yearone year

Metropolitan Utilities District

Notes to Basic Financial Statements

December 31, 2022 and 2021

Balance, beginning end of year, of year,Due within as restatedIncreasesDecreasesas restatedone year

Balance,

Metropolitan Utilities District

Notes to Basic Financial Statements

December 31, 2022 and 2021

(a) Water Revenue Bonds Water Revenue Bonds Series 2012

On December 17, 2012, the District issued Water Revenue Bonds Series 2012 for a par value of $40,745,000. The balance, annual installments, and interest rates at December 31, 2022 and 2021 consist of:

At the option of the District, the Water Revenue Bonds Series 2012 are subject to optional redemption prior to maturity on and after December 15, 2022. Principal and interest payments are as follows:

The indenture, under which the revenue bonds were issued, provides for the creation and maintenance of certain funds. These cash and cash equivalents are classified as restricted on the statement of net position. The District has pledged future water revenues to repay the Water Revenue Bonds Series 2012. Proceeds from the bonds were used to finance a portion of the costs of improvements to the District’s Water System including multiple projects undertaken to upgrade the District’s Platte South Plant and Florence Plant in part to comply with current regulatory requirements. The Water Revenue Bonds Series 2012 are payable solely from water revenues and are payable through 2032. Principal and interest payments of $1,970,000 and $908,544, respectively, were paid on these bonds in 2022. Principal and interest payments of $1,925,000 and $966,294, respectively, were paid on these bonds in 2021. Total water revenues for the year ended December 31, 2022 and 2021 were $152,939,164 and $142,733,070, respectively.