1964 WaterSewer Audit
To the Village Council
Village of New Hope
Hennepin County, Minnesota
We-have examined the balance sheet of the VILLAGE qF NEW HOPE,
WATER AND SEWER FUND as of December 31, 1964, and the related statements
of income and retained earnings for the year then ended. Our exami-
nation was made in accordance with generally accepted auditipg
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, 1964,
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.
=2-
The examination was conducted jointly by the firm of
Broeker & Hendrickson~ Certified Public Accountants~ and Department
of Public Examiner~ state of Minnesota~ in accordance with the
request of the Village Council.
Minneapolis, Minnesota
April 5~ 1965 klk v/~
BROEKER & EENDRIGKSON
Certified Public Accountants
;(~~..L.-
ROBERT A 0 WHI'I'AKER
Public Examiner
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
BALANCE SHEET - DECEMBER 31, 1964
A S S E T S
CURRENT ASSETS:
Cash $ 2.9719.20
Accounts receivable 44,984.66
Due from other funds 115,575.00
Total current assets $163,278.86
RESTRICTED CASH AND INVESTMENTS (Note 1) 55.9972.85
PLANT AND EQUIPMENT, at co s t :
Accumulated
Cost Depreciation Net
Waterworks plant
and distribution
system $482.9442.29 $ 41,071.35 $441,370.94
Building 75,066.96 3,273.58 71,793.38
Equipment 24,912.02 8,287.65 16,624.37
_$582,421.27 j 52,632.58 j529,788.69 529,788.69
DEFERRED SEWER USE CHARGES, at cost,
in process of amortization over life
of long-term contract 132,500.00
_$881,540.40
L I A B I LIT I E S
CURRENT LIABILITIES:
Current maturity of long-term contract $ 22,000.00
Accrued interest on Water and Sewer Revenue
Bonds and Long-Term Sewer Usage Contract 4,420.83
Accounts payable 7,434.05
Due to other funds 5,037.00
Total current liabilities $ 38,891.88
LONG-TERM LIABILITIES:
Water and sewer system revenue bonds
payable (See Note 2) $425,000.00
Long-term sewer usage contract,
exclusive of current maturity
included above (See Note 3) 110,500.00 535,500.00
RESERVES:
For expenditures (Note 5) $ 39,424.66 91,124.66
For restricted assets 51,700.00
RETAINED EARNINGS--per accompanying statement 216,023.86
j;88l,540.40
The accompanying notes are an integral part
of this balance sheet.
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
NOTES TO FINANCIAL STATEMENTS
1. Restricted assets consist of cash and investments appropriated
for the payment of bonds and interest as provided in the bond
indenture.
2. The indenture underlying the Water and Sewer System Revenue Bonds
payable provides, in partJ the following:
a. Annual bond maturities vary from $5JOOO to $25JOOO for
each year, beginning April 1, 1965 through 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 13 1966, at par plus accrued interest.
Bonds maturing in the years 1973 t4rough 1988 are subject
to redemption on any interest date on or after April lJ
1972, at par plus accrued interest and a premium of $40
per $13000 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 maturing 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:
1966 $ 24,000.00
1967 26,000.00
1968 28,000.00
1969 32,500.00
$110,500.00
VILLAGE OF NEW HOPE
WA'I'ER AND SEWER FTJIID
NOTES 'IG FINANCIAL STATEJ.VIENTS (COWIIIN1JED )
4. On November 12~ 1963 the Village entered into a~ agreement under
the authority of ytlnnesota StatutesJ Section 471.595 with the
City of Crystal and the Village of Golden Valley for the joint
construction and operation of a water storage and distribution
system using the City of Minneapolis as the source of the water
supply. The agreement created a Joint Water Commission to
administer the ventux'e lli~der the terms of the agreement. Actual
operation of the system began July 1$ 1964. The Village of New
Hope is financing their portion of the costs involved in con~
struction of the system through a $3009000 cash contribution by
the Water and Sewer Fund and by assessments on property within
the Village. For record keeping purposes the Village has recorded
all costs incurred to December 315 1964 on this project as con=
struction work in progress in Capital F~oject Funds. This
particular fund is identified as ~tinneapolis Water Connection
Improvement (Improvement Nu~ber 91) and includes the carrying
value of the Village water tower which was transferred in 1964
from the Water and Sewer F~~d.
5. Included in the Reserve for Expenditures is an amolli~t of $399187.28
which represents billings Trom the Village of Golden Valley for
sewer usage to December 319 1964>> which remains unpaid and has
been formally protested by the Village of New Hope.
VILLAGE OF NEW HOPE
, WATER AND SEWER FUND
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR TEE YEAR ENDED DECEMBER 31, 1964
INCOME
REVENUES ~
Water and sewer use charges, etc. $187,615.36
Water connection charges 81,647.31 .
Sewer connection charges 43,900.44
Other 1,972.04
Total revenues $315,135.15
OPERATING EXPENSES~
Cleaning and waste removal= $ 51..756.03
Operating expenses $ 71,756.03
Contract expense 20..000.00
Water-
Salaries $ 9;>820.32
Water purchased 19J492.68
Other 3,339,38 32,652.38
Administrative=
Salaries $ 4,216.80
Other 9,9999.41 l4,216.2l
Depreciation 16,685.93
Refunds and other 7,263.41 142..573.96
Net operating income $172,561.19
INTEREST EARNED ON INVESTMENTS 7..483.97
$180,045.16
INTEREST EXPENSE~
Interest on bonds and contract payable 21,729.16
Net income for the year j158,3l6.00
RETAINED EARNINGS
BALANCE: DECEMBER 31, 1963 $358,782.86
ADD:
Net income for the year, as above 158,316.00
$517,098.86
DEDUCT:
Contribution to Minneapolis Water Construc= $300,000.00
tion Improvement (See Note 4)
Increase in reserve for restricted assets 1..C15.00 301.9075.00
BALANCE: DECEMBER 31, 1964 . $216,0~3 .86
The accompanying notes are an integral part of
these statements of income and retained earnings.