1965 WaterSewer Audit
BROEKER HENDRICKSON (;; CO.
e ertif'ied ?JaMie J4eeoantants
NORTHWESTER.N BANK BUILDING
MINNEAPOLIS, MINNESOTA 55402
To the Village Council
Village of New Hope
Hennepin County, Minnesota
-
We have examined the balance sheet of the VILLAGE OF NEW HOPE,
WATER AND SE~~R FUND as of December 31, 1965, 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
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 retained earnings present fairly the financial position
of the Village of New Hope, Water and Sewer Fund at December 31, 1965,
and the results of its operations for the year then ended, in conformity
with generally accepted accounting principles applied on a basis consis-
tent with that of the preceding year.
Minneapolis, ltinnesota ~ /f~ ~~
..
April 30, 1966
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
BALANCE SHEET - DECEMBER 31, 1965
A S S E T S
CURRENT ASSETS:
Cash $ 16,269.77
Accounts receivable 52,412.73
Due from other funds 142,789.34
Investments--unrestricted 8,374.08
Total current assets $ 219,845.92
RESTRICTED INVESTMENTS (Note I) 51,500.00
PLANT AND EQUIPMENT, at cost:
Accumulated
Cost Depreciation Net
Waterworks plant
and distribution
system $599,607.97 $ 51,872.84 $547,735.13
Building 75,066.96 5,525.59 69,541.37
Equipment 33,795.07 12,521.70 21,273.37
$708,470.00 _$ 69, 920 .1~ j638, 549 .87 638,549.87
OTHER ASSETS:
Deferred sewer use charges, in process
of amortization over life of long-
term contract $110,500.00
Advance to Joint Water Commission 10,423.10 120,923.10
$1,030,818.89
L I A B I LIT I E S
CURRENT LIABILITIES:
Current maturity of long-term liabilities $ 29,000.00
Accrued interest on Water and Sewer Revenue
Bonds and Long~Term Sewer Usage Contract 4,334.17
Accounts payable 23,079.45
Due to other funds 237.38
Total current liabilities $ 56,651.00
LONG-TERM LIABILITIES, exclusive of current
maturity included above:
Water and sewer s)stem revenue bonds $415,000.00
payable (Note 2
Long-term sewer usage contract (Note 3) 86,500.00 501,500.00
RESERVES:
For expenditures (Note 4) $ 41,386.43 92,886.43
For restricted assets 51,500.00
RETAINED EARNINGS--per accompanying statement 379,781.46
jl,030,8l8.82
The accompanying notes are an integral part
of this balance sheet.
1. Restricted as t s appropriated for the
payment of' and provided in the bond indenture.
2. The indentu.T'e Sewer System Revenue
Bonds pa~Tab1e following:
a. from $5,000 to $25,000 f'or
maturing in the years
on their respective
option of prior payment. Bonds
1989 through 1992 are subject to
date on or after April 1,
interest. Bonds maturing
1988 are subject to redemp-
on or after April 1, 1972,
st and a premium of $40 per
s are at the option of
b, is 4.0% on $325,000 of
1966 tlu"ough 1988 and 3.8%
aI'S 1989 through 1992.
annually on April 1st and
3. The 10ng= 2% interest and is due
on December ,
.
1967 $ 26,000.00
1968 28,000.00
1969 -- 32,,500.00
~" 86,500.00
4. The ReSer\Te 386.43 represents reserves
against Golden Valley for sewer
usage to of which remains Q~paid
and has the Village of New Hope.
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
5. On November 12, 1963, the Village entered into an sgreement under
the authority of ~linnesota Statutes, Section 471.59, with the
City of Crystal and the Village of Golden Valley for the joint
construction and operation of a water storage and distribution
system using the City of Minneapolis as the source of the water
supply. The agreement created a Joint Water Commission to
administer the venture under the terms of the agreement. Actual
operation of the system began July 1, 1964. The Village of
New Hope is financing their portion of the costs involved in
construction of the system through a $300,000 cash contribution
by the Water and Sewer Fund and by assessments on property
within the Village. For recordkeeping purposes, the Village
has recorded all costs incurred to December 31, 1965 on this
project as construction work in progress in Capital Project
Funds. This particular fund is identified as Minneapolis Water
Connection Improvement (Improvement Number 91) and includes the
carrying value of the Village water tower which was transferred
in 1964 from the Water and Sewer Fund.
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1965
INCOME
REVENUES:
Water and sewer use charges $221,396.36
Water connection charges 66,983.16
Sewer connection charges 33,300.00
Other 4,204.69
Total revenues $325,884.21
OPERATING EXPENSES:
Cleaning and waste removal= $ 10,095.56
Salaries
Operating expenses 37,583.17 $ 69,678.73
Contract expense 22,000.00
Water=
Salaries $ 9,585.22
Water purchased 53,431.78
Other _ 4,860.41 67,877.41
Administrative=
Salaries $ 10,895.60
other 7,822.84 18,718.44
Depreciation 17,287.55 173,562.13
Net operating income $152,322.08
INTEREST EARNED ON INVESTMENTS 2,672.52
$154,994.60
INTEREST EXPENSE ON BONDS AND
CONTRACT PAYABLE 19,263.34
Net income for the year .$135,731.26
RETAINED EARNINGS
BALANCE, DECEMBER 31, 1964 $216,023.86
ADD:
Net income for the year ended
December 31, 1965, as above $135,731.26
Capitalization of lease payments, etc.
on assets transferred to Joint
Water Connnission 27,826.34
Decrease in reserve for restricted assets 200.00 163,757.60
BALANCE, DECEMBER 31, 1965 j)379,78l.46
The accompanying notes are an integral part
of these statements of income and retained
earnings.