1961 Waterworks
BROEKER & HEN DRICKSON
C ertzjied Pubhc Accountants
NORTHWESTERN BANK BUILDING
1v1 INN EA POL! S 2, 1v1 INN E SOT A
To the Village Council
Village of New Hope
Hennepin County, Minnesota
We have examined the balance sheet of the VILLAGE OF NEW HOPE,
WATERWORKS FUND as of December 31, 1961, and the related statements of
income, surplus reserves, surplus invested in fixed assets, and unappro-
priated surpl"us 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 circ'wmstances.
In our opinion.. the accompar~ing balance sheet and statements
of income, surplus reserves: surplus invested in fixed assets and
unappropriated surplus present fai.rly the financial position of the
Village of New Hope, vJaterworks Fund at Deeember 31.. 1961, and the
results of its operations for the year then ended, eonformi ty ~ii th
generally accepted accounting principles applied on a basis consistent
with that of the preceding yearo
Minneapolis, Minnesota ~~)I~
April 3, 1962
VILLAGE OF NEW HOPE
WA TER'VJORKS FUND
BALANCE SHEET - DECEMBER 31, 1961
A S S E T S
CURRENT ASSETS:
Ca sh in bank $ 57 J 320.31
Accounts receivable 8,799.7h
Due from other funds 3,394.39
Total current assets $ 69 !:; i 1+ 4i!
'",i..;!... ,(0 -r
WATERWORKS PLANT AND DISTRIBUTION SYSTEM (~631 2(;:;(' ('i:;Y
<P -" , . v
Less- Accumulated depreciation 16:547.07 614 7('/) 9(;:;
. j '-.,.?1..- 0 ...j
INVESTMENTS, at cost, which approximates
market value ';)9 76(;:; q'7
-; """) 0 __ /
jT13 98'-' ~6
.J..) ~j..J~
L I A B I LIT I E S
CURRENT LIABILITIES:
Accrued interest on Waterworks Revenue Bonds $ 3,500.00
Accounts payable 4,590.
Total current liabilities $ 8 r'90 rr.
J t,,) ''''';} 0 \.Jv
WATERWORKS REVENUE BONDS PAYABLE (See Note 1) 350)000.
SURPLUS RESERVES:
Reserve for payment of bonds and interest $ 67,129.71
Reserve for construction expenditures ' 57.>588.28 "1211 7'7 90
-1--':1 .J.. (l ;,;
SURPLUS INVESTED IN FIXED ASSETS 222,293. L~7
UNAPPROPRIATED SURPLUS 8,881.90
_$713) 983 .36
The accompanying notes are an integral part of this
balance sheet.
NOTES TO FINANCIAL STATEMENTS
1. The provision Q~derlyL~g the Water~orks Revenue Bonds payable
provides, in part, the fo11owing~
a. Annual bond rr~turities vaFff from $5,000 to $25,000 for
each year beginning May 1, 1962 to 1989. Bonds
maturing 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 prepayments are at the option of the
Village and are payable at par plus accrued interest
and a premium of $50 per $1,000 bond, prOVided that
prepayments occuringin 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, 1961, surplus net revenues, as defined,
totaled $5,427.86.
b. The a~~ual interest on the bonds is 6% with interest
payable semi-ap~ua11y on May 1st and November 1st.
2. The Village Council of the Village of New Hope has by resolution
dated March 13, 1962 provided for the merger of the Waterworks
Fund and the Sewer Operating Flli~d. Such resolution provided, in
part, the issuance of Water and Sewer System Revenue Bonds of
1962 in the amount of $425,000 for the purpose of retiring the
$350,000 of Waterworks Revenue Bonds outstanding as of December 313
1961, and for the purchase of the tank and water tower at a price
of $96,125 which the Village had leased during 1960 and 1961.
VILLAGE OF NEW HOPE
WA TERWORKS FUND
STATEMENTS OF INCOME, SURPLUS RESERVES,
SURPLUS INVESTED IN FIXED ASSETS AND UNAPPROPRIATED SURPLUS
FOR THE YEAR ENDED DECEMBER 31, 1961
INCOME
REVENUES ~
Water connection charges $ 56,082.82
Water use charges 20,675.32
T'Ota1 revenues $ 76,758.14
OPERATING EXPENSES:
Rent $ 6,000.00
Depreciation 9,919..96
Salaries 4,779..51
Utilities 1,559..38
Other 4,975.63 27.9234.48
Net operating income $ 49.9523066
INTEREST EAFL~ED ON INVESTMENTS 693.64
$ !::() ?\"' 7 -r,
,..IV, c::::.l., .j~:
INTEREST EXPENSE 213 OO~() oO{)
Net income for the year $ 29.9217..30
SURPLUS RESERVES
BALANCE, DECEMBER 31, 1960 $' 02 1, 3'7 ';:;n
.J.. ~.... {O'-V
ADD- Transfer from unappropriated surplus 22,580.79
in accordance with bond indenture
BALANCE, DECEMBER 31, 1961 j124, 717.99,
SURPLUS INVESTED IN FIXED ASSETS
BALANCE, DECEMBER 31, 1960 $ -
ADD- CUrrent year's transfers of
improvements completed during year 224,538.86
DEDUCT- CUrrent year's depreciation
expense relating to the above transfer 2,245.39
BALANCE, DECEMBER 31, 1961 $222,293.47
UNAPPROPRIATED SURPLUS
BALANCE, DECEMBER 31, 1960 $ -
ADD:
Net income for the year, as above 29' 2' '7 3rt.
, ..J.. I 0 \",,'
Provision for depreciation charged to
operations, reflecting the transfer of
surplus invested in fixed assets , 2,245.39
$ 31,462.69
DEDUCT- TTansfer to surplus reserves in
accordance with bond indenture 2211580.79
BALANCE, DECEMBER 31, 1961 j 8,881.90
VILLAGE OF NEW HOPE
WA TERWORKS FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
FOR THE YEAR ENDED DECEMBER 31, 1961
CASH RECEIPTS:
Investments sold $364,306.36
Interest earned on investments 693.64
Water connection prepayments 64,308.31
Water use charges 17,456.62
Transfers in from other funds 460.00
Refunds and reimbursements 2,706.51
Total cash receipts $449;931.44
CASH DISBURSEMENTS:
Investments purchased $344;157.33
03.pi tal out1ay- $ 18,135.07
Distribution system
Equipment 3,002.42 21,137.49
Operating expenses 15,607.29
Transfers out to other funds 23;754.00
Interest 21;000.00
Refunds and reimbursements 8,225.49 433,881.60
Excess of receipts over disbursements j 16,049.84