1960 Waterworks
BROEKER & HENDRICKSON
C ertzjied Public Accountants
NORTHWESTERN BANK BUILDING
MINNEAPOLI S 2, MINNES OTA
To the Village Council
Village of New Hope
Hennepin County, Minnesota
We have examined the balance sheet of the VILLAGE OF NEW HOPE,
WATERWORF~ FUND as of December 31, 1960, and the related statements of
income and surplus reserves for the year then ended. Our examination
was made in accordance with generally accepted auditing standards, and
accordingly included such tests of the accounting records and such other
auditing procedures as we considered necessary in the circumstances.
In our opinion, the accompanying balance sheet and statements
of income and surplus reserves present fairly the financial position of
the Village of New Hope, Waterwo~ks Fund at December 31, 1960, and the
results of its operations for the year then ended, in conformity with
generally accepted accounting principles applied on a basis consistent
with that of the preceding year. J
Minneapolis, Minnesota
March 3, 1961 /J 4 ;<Ifl.r~~IZ~",---/
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VILLAGE OF NEW HOPE
WATERWORKS FUND
BALANCE SHEET ~ DECEMBER 31, 1960
A 'S S E T S
CUR..11ENT ASSETS ~
Cash in bank $ 41,270.47
Accounts receivable 7,384.95
Due from other funds 460000
Total current assets $ 49,115042
1tJ'ATEP:VWRKS PLANT AND DISTRIBUTION SYSTElvI $363,643089
Less= Accumulated depreciation 6,627.11 357,016.78
INVESTMENTS, at cost, which approximates 49,915.00
market value
$456,047.20
L I A B I LIT I E S
CUB~.ENT LIABILITIES ~
interest on Waterworks Revenue Bonds $ ':l. 5'''''0 00
oJ' .',"",.$ ,.; 0";'"
-other funds 410000
Total current liabilities $ ~ 9"'''''
j9 .LU.
1l1ATERWORKS RE\7E1\J1JE BONDS PAYABLE (See Note 1) 3509 .
SURPLUS RF.SER\TES ~
payment of bonds and interest $ r>7 111 ;::>.i.J.
.::: i 9 . -- ,
R.eserve construction expenditures . 75~02~.96
The accompanying notes are an integral part of this
balance sheet.
NOTES TO FINANCIAL STATEMENTS
1. The provision underlying the Waterworks Revenue Bonds payable
provides, in part, the following:
a. Annual bond maturities vary from $5,000 to $25,000 for each
year beginning, May 1, 1962 to 1989. Bonds ma:j:;uring in the
years 1962 through 1979 are payable on their respective
maturity dates without option of prior payment. Bonds
maturing in the years 1986 through 1989 are subject to
redemption on any interest date from May 1, 1966 to May 1,
1969. Bonds maturing in the years 1980 through 1989 are
subject to redemption on or after May 1, 1969. All pre-
payments are at the option of the Village and are payable
~t par plus accrued interest and a premium of $50 per
$1,000 bond, provided that prepayments occuring in the
years 1966 through 1968 shall be made only out of surplus
net revenues, as defined, then on hand in the surplus
account. As of December 31, 1960, surplus net revenues,
as defined, totaled $611.24. b. The annual interest on the bonds is 6% with interest payable
semi-annually on May 1st and November 1st.
2. The Village has entered into a twenty-year lease agreement for a
water tank providing for annual rentals of $15,000 for the year
ended June 1, 1960, $6,000 for the years 1961 through 1964 and
$12,000 for the years 1965 through 19790\ These payments shall
be payable only from net revenues of the Waterworks Fund, except
the initial payment which shall be paid from the Capital Expend=
iture Account. The Village, at its option, may purchase the
water tank on any payment date, on a basis as provided for in
the lease agreement, or renew the lease for an additional twenty
years 0
VILLAGE OF NEW HOPE
WATERWORKS FUND
STATEMENTS OF INCOME AND SURPLUS RESERVES
FOR THE YEAR ENDED DECEMBER 31, 1960
INCOME
REVENUES ~
Water connection charges $ 41,824.93
Water use charges 6,824.43 -
Total revenues $ 48,649.36
OPERATING EXPENSES:
Rent $ 17,716.00
Depreciation 6,627.11
Salaries 1,650.05
Utilities 859.38
Other 2,247.94 29,100.48
Net operating income $ 19,548.88,
INTEREST EARNED ON INVESTMENTS 2,299.49
$ 21,848.37
INTEREST EXPENSE 5,000000
Net income for the year $ 16,848037
SURPLUS RESERVES
BALANCE, DECEMBER 31, 1959-
Unappropriated $ 15,984.25
Reserve for authorized expenditures 69p304.58
$ 85.9288.83
ADD- Net income for the year, as above 169'848037
BALANCE, DECEMBER 31, 19pO $"1A2 "'37 2CJ
.. .J..v..t2.~:jo, ~
VILLAGE OF NEW HOPE
WATERWORKS FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1960
CASH RECEIPTS:
Investments sold $250,198.15
Interest earned on investments 2,299.49
Water connection prepayments 41,824.93
Water use charges 3,863.20
Transfers in from other funds 15,410.00
Refunds and reimbursements 2,620.21
Total cash receipts $316,215.98
CASH DISBURSEMENTS:
Investments purchased $260,865.97
Capital out1ay- Construction, including
current year's interest expense of
$16,000.00 capitalized, and $3,407.97
to be refunded by developers 67,984.67
Operating expenses 22,490.25
Transfers out to other funds 16,513.83
Interest 5,000.00 372,854.72
Excess of disbursements over receipts $ 56,638.74