1963 Liquor Dispensary
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
DETERMINATION OF SURPLUS NET REVENUES
FOR THE PERIOD FROM DECEMBER 13, 1958 TO DECEMBER 31, 1963
AS DEFINED IN
THE RESOLUTION AUTHORIZING ISSUANCE OF REVENUE BONDS OF AUGUST 1, 1958
Net loss for the period ended December 31,
1958 (as adjusted) $~ 4,699.05~
Net loss for the year ended December 31, 1959 3,605.01
Net income for the year ended December 31, 1960 3,978.16
Net income for the year ended December 31, 1961 14,174.96
Net income for the year ended December 31, 1962 13,784.82
Net income for the year ended December 31, 1963 19,453.80
$ 43,087.68
Add back-
F~penses incurred and accrued which are not
deductions from gross revenue in determination
of net revenue-
Depreciation expenses incurred from
December 13, 1958 to December 31,
1963 $ 13,785.42
Interest expense for the period from
August 1, 1958 (date of bond issue)
to December 31, 1963 26,199.91 39,985.33
Net income from operations, before
deduction of interest and
depreciation, for the period from
December 13, 1958 to December 31,
1963 $ 83,073.01
Deduct-
Net revenue reserves-
Allowance for a reasonable stock of
inventory (reflected by inventory $ 13,228.48
balances at December 31, 1963)
Allowance for a reasonable reserve for
operation and maintenance emergencies
(reflected as approximately one month's
operating expenses) 4,000.00 17,228.48
Net revenue (as defined) for the
period from December 13, J.958 to $ 65,844.53
December 31, 1963
Total principal and interest paid on
revenue bonds to December 31, 1963 37,657.00
Suxplus net revenues, as defined $ 28,187.53
BROEKER & HEN DRICKSON
Certified PublLc Accountants
NORTHWESTERN B1\N!{ BUILDING
HI N N EA POL IS:>, !vI INN E S (> T A
To the Village Gounci1
Village of New Hope
He~~epin County, Minnesota
We have examined the balance sheet or the VILLAGE OF NEW
HOPE, LIQUOR DISPENSARY FUND and the VILLAGE OF NEW HOPE LIQUOR STORE
FUND as of December 31, 1963, and the related statements of income and
retained earnings for the year then ended. Our examination was made
in accordance with generally accepted auditing standards, and accord-
ingly 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 state-
ments of income and retained earnings present fairly the financial
position of the Village of New Hope Liquor Dispensary Fund and the
Village of New Hope Liquor Store Fund at December 31, 1963, and the
results of their operations for the year then ended, in conformity
with generally accepted accounting principles applied on a basis
consistent with that of the preceding year.
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The examination w'as conducted jointly by the firm of
Broeker & Hendrickson, Certified Public Accountants, and Department
of Public Examiner, State of Mimlesota, in accordance vdth the
request of the Village Council.
Minneapolis, Minnesota , ~/'
Apri1lO, 1964 ~..;;V~
BROEKER & HENDRICKSON
Certified Public Accountants
/ Ii~'
. . :.
~~~{( {/ <,:/:-L~
ROBERT A. WHITAKER
Acting Public Examiner
VILLAGE OF NEW HOPE
LIQUOR DISPENSARY FUND
AND
-
VILLAGE LIQUOR STORE FUND
COMBINED BALANCE SHEET - DECEMBER 31, 1963
A S S E T S
Liquor Village
Dispensary Liquor
Fund Store Fund Total
CURRENT ASSETS:
Cash on hand $ 2,188.33 $ - $ 2,188.33
Cash in bank 7,955.86 6,136.05 14,091.91
Inventory, at cost 13,228.48 18,194.85 31,423.33
Due from other rm1ds 572.38 - 572.38
Prepaid expenses - 250.00 250.00
Total current assets $ 23,945..05 $ 24,580.90 $ 48,525.95
RESTRICTED CASH AND INVESTMENTS
(Note 1) $ 29,419.17 .~ - $ 29,419.17
FIXED ASSETS, at cost: $ 12,016.64 $ $ 12,016.64
Land -
Building 57,556..53 - 57,556.53
Furniture and fixtures 19,956.35 9,631.13 29,587.48
Leasehold improvements - 835.00 835.00
$ 89,529.52 $ 10,466.13 $ 99,995.65
Less- Accumulated depreciation 13,785..42 1,540.66 15,326.08
$ 75,744.10 $ 8,925.47 .$ 84,669.57
$129,108.32 $ 33,506.37 ~162,614.69
L I A B I LIT I E S
CURRENT LIABILITIES:
Current maturity of bonds payable $ 5,000.00 $ - $ 5,000.00
Accounts payable 3,778.31 2,312.38 6,090.69
Due to other funds 1,495.56 40,572.38 42,067.94
Accrued Public Employees
Retirement Association
contributions 2,203.86 612.00 2,815.86
Accrued interest on Municipal
Building Revenue Bonds payable 1,542.91 - 1,542.91
Total current 1iabili~s $ 14,020.64 $ 43,496.76 $ 57,517.40
MUNICIPAL BUILDING REVENUE BONDS
PAYABLE, exclusive of current
maturity included above (Note 2) 72,000.00 - 72,000.00
RESERVE FOR RESTRICTED CASH AND
INVESTMENTS 14,750.00 - 14,750.00
RETAINED EARNINGS (deficit)--per ( 9,990.39)
accompanying statement 28,337.68 18,347.2~
1129,108.32 t 33,506.37 $162,614~69
The accompanying notes are an integral part of this balance sheet.
NOTES TO FINANCIAL STATEMENTS
1. Restricted assets consist of cash and investments appropriated
for the payment of bonds and interest as provided for in the
bond indenture.
2. The provision underlying the Municipal Building Revenue Bonds
payable provides, in part~ the fo11ovring:
a . Annual bond maturities vary from $5,000 to $10,000 for
each of the years 1964 thrOU~h 1973. Bonds maturing
in the years 196L~ through 19 6 are payable on their
respective maturity dates without option of prior
payment. Bonds maturing in the years 1971 through 1973
are subject to redemption on or after August 1, 1963
and bonds maturing in the years 1967 through 1970 are
subject to redemption on or after August 1, 1966. All
prepayments are at the option of the Village and are
layab1e at par plus accrued interest and a premium of
50 per $1,000 bond.
b. The annual interest on the bonds varies from 4.2% to 6.0%
dependent upon the year of interest payment and the date
of serial maturity.
c. Bond interest and principal shall be payable from net
revenues, as defined, and the excess shall be allocated
to certain specific accounts. At December 31, 1963 the
Village had net revenues of $65,844.53 and had paid
principal and interest on such revenue bonds to
December 31, 1962 in the amount of $37,657.00, leaving
surplus net revenues of $28,187.53.
VILLAGE OF' NEW HOPE
LIQUOR DISPENSARY FUND
AND
-
VILLAGE LIQUOR STORE FUND
STATEMENTS OF INCOf1E AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1963
Liquor Village
Dispensary Liquor Store
INCOME Fund Fund Total
SA1:..ES : .
On sale $ 83,922.90 $ - $ 83,922.90
Off sale 90,722.78 ~ 73,043. 77 163,766.5~
Total sales $174,645.68 $ 73,043.77 $247,689.45
COST OF SALES 103,674.23 58,286.65 161,960.88
Gross profit on sales $ 70,971.45 $ 14,757.12 $ 85,728.57
Per cent to sales 40 . 6)'& 20.2% 34.6%
OPERATING EXPENSES:
Se11ing- $ 23~267.42 $ 7,341.32 $ 30,608.74
Salaries
Public Employees Retirement
Association contribution 1,097.49 488.02 1,585.51
Supplies 1,536.85 120.10 1,656.95
Laundry 268.60 52.20 320.80
Licenses and taxes 77.00 54000 131.00
Cash short 247.47 20.62 268.09
Total selling expenses _$ 26,494.83 j 8,076.26 i 34,571009
Overhead-
Utilities $ 2,165.24 $ 1,302.70 $ 3,467.94
Rent - 3,000.00 3,000.00
Maintenance and repairs 997.03 4.00 1,001.03
Cleaning 2,153.10 - 2,153.10
Other contractual services 485.43 216.00 701.43
Supplies 53.73 - 53.73
Insurance 2,259.92 787.66 3,047.58
Taxes 158.67 - 158.67
Depreciation 2,849.55 827.63 3,677.18
Total overhead expenses i ll,122.67 $ 6,137.95? _$ 17,260.66
Administration and general- $ 10,919.14
Salaries $ 9,335.14 $ 1,584.00
Public Employees Retirement 699.26 699.26
Association contribution -
Legal and accounting 400.00 200.00 600.00
Office supplies 131.17 74.00 205.17
Other 36.03 50.00 86.03
Total administration
and general expenses .$ 10,601.60 .$ 1,908.00 c$ 12,509.60
Total operating expenses $ 48,219.10 _$ 16,122.25 .$ 64,341.35
Operating income (loss) $ ....Y-, 7S2 :>5 $( 1,365.13) $ 21,387.22
., '- c... J .... .-.J
I:t'J'rE.t1EST EXPENSE (Net) ., 20" 5f::: - -.) 20'" ,',-
:;, ./0. ..J ~,' .,/ 0 . :) ~!
Net income for the year i' '9 ),I~" 80 1l-.!.._:ili5. .1 ~ ) 6'{
.~) - ~:-=-~..L.-) . ~
...."".,~....
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RETAINED EARNINGS
BALANCE~ DECEMBER 31, 1962 $ 20~094.50 $( 8,625.26) $ 11,469.24
(deficit)
ADD- Net income (loss) for the 19,453.80 ( 1,365.13)
year, per statement of income 18,088.67
$ 39~548.30 $( 9~990.39) $ 29~557.91
DEDUCT- Transfer to reserve for
restricted assets 11~210.62 - 11,210.62
BALANCE~ DECEMBER 31, 1963 $ 28,337.68 j( 9,990.39) ,~ 18,347.29
(deficit) The accompanying notes are an integral part of these
statements of income and retained earnings.