1962 WaterSewer Audit
BROEKER & HEN DRICKSON
Certlfied Pubhc Accountants
NORTHWESTERN BANK BUILDING
HINNEAP OLl S 2, HI NNE S OT A
To the Village Council
Village of New Hope
Hennep in Co un ty , Minnesota
We have examined the balance sheet of the VILLAGE OF NEW HOPE,
WATER AND SEWER FUND as of December 31, 1962, 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 op inion, the accompanying balance sheet and statements
of income and surplus reserves present fairly the financial position of
the Village of New Hope, Water and Sewer Fund at December 31, 1962, and
the results of its operations for the year then ended, in conformity
with generally accepted accounting principles applied on a basis con-
sistent with that of the preceding year.
MinneapOlis, Minnesota
April 22, 1963 13~ f ;!~
Released September 30, 1963
VILLAGE OF NEW HOPE
WA TER AND SEWER FUND
BALANCE SHEET ~ DECRMBER 31, 1962
A S S E T S
CURRENT ASSETS:
cash $ 28,205.52
Accounts receivable 33,912.86
Due from other funds 38,000.00
Investments, at cost, which
approximates market value 79,851.37
Total current assets $179,969.75
PLANT AND EQUIPMEl~T, at cost:
Accumulated
Cost Depreciation Net
Waterworks plant
and distribution
system $542,701.44 $ 24,276.39 $518,425.05
Automotive equip-
ment 12,811.56 2,801.63 10,009.93
$555,513.00 _$ 27,078.02 i'i28, 434. 98 528,434.98
DEFERRED SEWER USAGE CHARGES, at cost,
in process of amortization over life
of long-term contract 170,500.00
_$878,904. 73
L I A B I LIT I E S
CURRENT LIABILITIES:
Current mffivrity of long-term contract $ 18,000.00
Accrued interest on Water and Sewer Revenue
Bonds and Long-Term Sewer Usage Contract 6,396.67
Accounts payable 7,796.27
Due to other fu.l1ds 1 , 578 . 95
T~tal current liabilities $ 33,771.89
LONG=TERM LIABILITIES:
Water and sewer system revenue bonds $425,000.00
payable (See Notes 1 and 2)
Long-term sewer usage contract,
exclusive of current maturity
included above (See Note 3) 152,500.00 577,500.00
SURPLUS RESERVES (See Notes 1 and 2): $ 40,000.00
Reserves for payment of bonds and interest
Reserve for operation and maintenance 3,073.43 267,632.84
Reserve for renewal and extension 224,559.41
$878,904.73
The accompanying notes are an integral part of
this balance sheet.
NOTES TO FINANCIAL STATEMENTS
1. On ~arch 13, 1962, the former Waterworks Fund and the Sewer Operating
Fund wer'e merged into the Water and Sewer Fund in accordance with
the resolution adopted by the Village Cou.~cil. Accordingly, the
surplus reserves at December 31, 1962, reflect the combined balances
of unappropriated surplus at December 31, 1961, and the combined
net income for the year ended December 31, 1962.
2. The indenture underlying the Water and Sewer System Revenue Bonds
payable provides, in part, the following:
a. Annual bond maturities vary from $5,000 to $25,000
for each year beginning April 1, 1965 to 1992. Bonds
maturing in the years 1965 through 1972 are payable
on their respective maturity dates without option of
prior payment. Bonds maturing in the years 1989
through 1992 are subject to redemption on any interest
date on or after April 1, 1966, at par plus accrued
interest. Bonds maturing in the years 1973 through
1988 are subject to redemption on any interest date
on or after April 1, 1972, at par plus accrued in-
interest and a premium of $40 per $1,000 bond. All
prepayments are at the option of the Village.
b. The annual interest on the bonds is 4.0% on $325,000
of bonds IT~turing in the years 1965 through 1988
and 3.8% on bonds maturing in the years 1989 through
1992 plus additional interest of 1.8% on all bonds
from August 1, 1962 to April 1, 1964. Interest is
payable semi-annually on April 1st and October 1st.
3. The long-term sewer usage contract bears 2% interest and is due
on December 1st of each year as follows:
1964 $ 20,000.00
1965 22,000.00
1966 24,000.00
1967 26,000.00
1968 28,000.00
1969 32,500.00
$152,500.00
VILLAGE OF NEW HOPE
'WATER AND SEWER FUND
STATEMENTS OF INCOME AND SURPLUS RESERVES
FOR THE YEAR ENDED DECEMBER 31, 1962
INCOME
REVENUES:
Water and sewer use charges $ 96,868.01
Water co~~ection charges 62,026.60
Sewer connection charges 36,400.00
Sewer connection permit charges 1,922.07
Total revenues $197,216.68
OPERA TING EXPENSES:
Cleaning and waste removal-
Operating expenses $ 26,585.07
Contract expense 16,000.00 $ 42,585.07
Administrative-
Salaries $ 12,742.81
utili ties 2,951.01
Professional and consultant 8,339$00
other 5,225.29 29,258.11
Deprecia tion 11,922.57
Maintenance and repairs 2,442.99 86,208.74
Net operating income $111$007.94
INTEREST EARNED ON TIfVESTMENTS 1,804.89
$112,812.83
INTEREST EXpm~SE:
L~terest on bonds and contract payable $ 25,732.50
L~terest premium paid on call of
Waterworks Revenue Bond of 1959 27,600.00 53,332.50
Net income for the year $ 59,480.33
SURPLUS RESERVES
BALANCE, DECEMBER 31, 1961-
Waterworks Fund $124,717.99
ADD=
Transfer from unappropriated surplus
in accordance with bond resolution-
Waterworks Fund $ 8,881.90
Sewer Operating Flli~d 74,552.62 $ 83,434.52
Net income for the year, 59,480.33 14Z!~~4. 85
as above
BALANCE, DECE~ffiER 31, 1962 $267,632.84
The accompanying notes are an integral part of these
statements of income and surplus reseFves.
VILLAGE OF NEv'l HOPE
WATER AND SEWER FUND
STATEMENT OF CASH RECEIPTS AND DISBURSEMENTS
FOR THE YR~R ENDED DECEMBER 31, 1962
CASH BALANCE, DECEMBER 31, 1961 g $
Waterworks Flli'1.d 57,320.31
Sewer Operating Fund 22,962.19 $ 80,282.50
CASH RECEIPTS ~
Investments sold $ 358,988.44
L'1.terest earned on investments 1,012.43
Sale of bonds 425,793.33
Water cOlli~ection charges 68,524.92
Sewer connection charges 37,666.56
Water and sewer use charges 80, 81 7 . 60
Transfers in from other funds 80,500.00
Refunds and reimbursements 4,636.21 1,057,939.49
$1,138,221.99
CASH DISBURSEME~TS~
Investments purchased $ 409,073.84
capi tal outlay- $ 96,207.98
Distribution system.
Equipment 2,509.39 98,717.37
Debt retirement 366,000.00
Operating expenses 59,547.82
Transfers out to other funds 119,191.98
Llterest 50,746.66
Refllilds and reimbursements 6,738.80 1,110,016.47
CASH BALANCE, DECffi~ER 31, 1962 j 28,205.52
The accompanying notes are an integral part of
this statement of receipts and disbursements.