1963 WaterSewer Audit
BROEKER & HENDRICKSON
C'ntlfied Public Accountants
NORTHWESTERN BANI{ BUILDINe;
Iv! INN EA P 0 LI S 2, ]\[ 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,
WATER AND SEWER FUND as of December 31, 1963, and the related statements
of income and retained earnings for the year then ended. Our exami-
nation 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 3l~ 1963,
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 h~th the request
of the Village Council.
Minneapolis, Minnesota ~o{/~
April 10, 1964
BROEKER & HENDRICKSON
Certified Public Accountants
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;f"!~{i!-1/1(/ L/r;{..-- . ;-c- /, ( . v/
ROBERT A. WHITAKER
Acting Public Examiner
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
BALANCE SHEET - DECEMBER 31, 1963
A S S E T S
CURRENT ASSETS:
Cash $ 5,230.28
Accounts receivable l~9, 356.8'(
Due from other funds 77,500.00
Total current assets $ 132,087.15
RESTRICTED CASH AND INVESTMENTS (Note 1) 160,844.63
PLANT AND EQUIP.l\1ENT, at cost:
Accumulated
Cost Depreciation Net
Waterworks plant
and distribution
system $543,151.44 $ 36,096.69 $507,054.75
Building 71,586.11 1,073.79 70,512.32
Equipment 13,758.86 5,027.71 8,731.15
j628~96.4l $ 42,198.19 j586,298.22 586,298.22
DEFERRED SEWER USE CHARGES, at cost,
in process of amortization over life
of long-term contract 152,500.00
~03l) 730 .00
L I A B I LIT I E S
CURRENT LIABILITIES:
Current maturity of long-term contract $ 20,000.00
ACC1"Ued interest on \vater and Sewer Revenue
Bonds and Long-Term Sewer Usage Contract 6,366.67
Accounts payable 37,727.37
Due to other funds 728.10
Total current liabilities $ 64,822.14
LONG-TERM LIABILITIES:
Water and sewer system revenue bonds $425,000.00
payable (See Note 2)
Long-term sewer usage contract,
exclusive of current maturity
included above (See Note 3) 132,500.00 557,500.00
RESTRICTED RESERVE AND RETAINED EARNINGS:
Reserve for restricted assets $ 50,625.00
Retained earnings 358,782.86 l.J.09, 407 .86
1L.. 0 3l! :r~!}-;!!O
The accompanying notes are an integra.l 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 in the bond
indenture.
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, 19 5 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, 19724 at par plus accrued in-
terest and a premium of $ 0 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 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:
1965 $ 22,000.00
1966 24,000.00
1967 26,000.00
1968 28,000.00
1969 32,500.00
_$132,500.00
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
STATEMENTS OF INCOME AND RETAINED EARNINGS
FOR THE YEAR ENDED DECEMBER 31, 1963
INCOME
REVENUES:
Water and sewer use charges, etc. $147,554.30
Water connection charges 86,542.30
Sewer connection charges 39,295.54
Total revenues $273,392.14
OPERATING EXPENSES:
Cleaning and waste removal-
Operating expenses $ 44,455.16
Contract expense 18,000.00 $ 62,455.16
Administrative-
Salaries $ 16,958.69
Utilities 4,083.68
Professional and consultant 1,807.00
Other 3,482.88 26,332.25
Depreciation 15,120.17
Maintenance and repairs 2,089.62 105,997.20
Net operating income $167,394.94
INTEREST EARNED ON INVESTMENTS 2,210.08
$169,605.02
INTEREST EXPENSE:
Interest on bonds and contract
payable 27,830.00
Net income for the year j14l,775.02
RETAINED EARNINGS
BALANCE, DECEMBER 31, 1962 $213,182.84
ADD:
Reduction in restricted reserve $ 3,825.00
Net income for the year, as above 141,775.02 145,600.02
BAlANCE, DECEMBER 31, 1963 j358,782.86
The accompanying notes are an integral part of
these statements of income and retained earnings.