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NOTE 2 — DEPOSITS AND INVESTMENTS (CONTINUED) <br />Interest rate risk — This is the risk of potential variability in the fair value of fixed rate investments <br />resulting from changes in interest rates (the longer the period for which an interest rate is fixed, the <br />greater the risk). The City does not have an investment policy limiting the duration of investments. <br />NOTE 3 — LEASE RECEIVABLE <br />The City has entered into lease receivable agreements for cell tower rental space on city property. These <br />leases are reported using an incremental borrowing rate of 3.25 percent with final maturities through fiscal <br />2032. During the current year, the City received principal and interest payments on these leases of $89,385. <br />The City has entered into lease receivable agreements for rental space in city owned buildings and vacant <br />land. These leases are reported using an incremental borrowing rate of 3.25 percent with final maturities <br />through 2040. During the current year, the City received principal and interest payments on these leases of <br />$303,137. <br />Leasing assets to other entities is not a principal ongoing operation of the city. <br />NOTE 4 — INTERFUND RECEIVABLES, PAYABLES, AND TRANSFERS <br />A. Due From and Due To Other Funds <br />A $25,000 internal loan from the Nonmajor Economic Development Authority Fund payable by the Tax <br />Increment Fund was utilized for cash flow purposes. <br />B. Advance To and From Other Funds <br />Individual interfund advances to and from other funds at year-end were as follows: <br />Payable Fund <br />Receivable Fund <br />Tax Increment Nonmajor <br />Special Revenue Governmental <br />Fund Funds <br />NonmajorGovemmentalFunds $ 1,454,009 $ <br />Water Utility Enterprise Fund 348,000 <br />Sewer Utility Enterprise Fund 21,000 <br />Street Light Utility Enterprise Fund 48,892 <br />Storm Water Utility Enterprise Fund 365,000 <br />Total <br />137,761 <br />Amount <br />$ 1,454,009 <br />485,761 <br />21,000 <br />48,892 <br />365,000 <br />$ 2,236,901 $ 137,761 $ 2,374,662 <br />The Tax Increment Fund advances from other funds of $2,236,901 was used to finance improvements in <br />the COR. All funds are to be repaid by 2038. The $137,761 is to internally finance a facility loan. The <br />Water Utility Fund is to be repaid by 2028 with a stated rate of interest of 2%. <br />73 <br />