1968 WaterSewer Audit
BROEKER HENDRICKSON &3 CO.
Certified '}JuMic llccountants
NORTHWESTERN 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 SEwER FUND as of December 31, 1968, and the related
sta~'ements 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 financial statements present
fairly the financial position of the Village of New Hope Water and
Sewer Fund at December 31, 1968" and the results of its operations for
the year then 'ended, in conformity with generally accepted accounting
principles applied on a basis consistent with that of the preceding year.
Minneapolis, Minnesota u;f~ v"t:
March 21" 1969
.
VILLAGE OF NEW HOPE
WATER AND SEWER FUND
BALANCE SHEET - QECEMB1!R ~ 1968
A S S E T S
CURRENT ASSETS:
Cash $ 3,545.36
Accounts receivable 69,960040
Due from other funds 27,368.60
Investments--unrestricted 247,816066
Total current assets $ 348,691002
RESTRICTED INVESTMENTS (Note 1) 50,900.00
PLANT AND EQUIPMENT, at cost:
Accumulated
Cost Deprecation Net
Water and sewer
pla.nt and dis-
tribution system
(Note 2) $783,478.47 $ 95,808.99 $687,669.48
Building and land l58,~8l.83 l3,~07.95 145,273.88
Equipment 39, 56.11 27, 90.85 12,365.32
$982,116041 $136,807079 $845,308068 845,308068
OTHER ASSETS:
Deferred sewer use charges, in process
of amortization over life of long-
term contract $ 32,500.00
Advance to Joint Water Commission 16,516.51
Due from other municipalities 16,429065 65,446016
$1,310,,345086
LIABILI'J:lIES
CURRENT LIABILITIES:
Current insta.llments of water and sewer system-- $
revenue bonds 5,000000
Contract payable 32,500000
Accrued interest on Water and Sewer Revenue
Bonds and Long-Term Sewer Usage Contract 4,056067
Accounts payable 42,096.49
Due to other funds 5,665.00
Total current liabilities $ 89,318016
WATER AND SEWER SYSTEM REVENUE BONDS PAYABLE,
exclusive of current installments included
above (Note 3) 400,000.00
RESERVE FOR RESTRICTED ASSETS 50,900.00
RETAINED EARNINGS--per accompanying statement 770,127.70
$1,310,345.86
The accompanying notes are an integral part of
this balance sheet.
VILLAGE OF NEW HOPE
WA TER AND SEWER FUND
STATEMENTS OF INCOME AND RETAINED ~RNINGS
FOR THE YEAR ENDED DECEMBER 31>> 1968
INCOME
REVENUES:
Water and sewer use charges $ 345,501094
Water connection charges 101,297.73
Sewer connection charges 48,694052
Other 6,881.41
Total revenues $ 502,375.60
OPERATING EXPENSES:
Cleaning and waste removal-
Salaries $ 14,103.83
Operating expenses 52,426.60
Contract expense ~ 28,000.00 $ 94,530.43
Water-
Salaries $ 13,139.53
Water purchased 93,520.37
other 5,974.29 112,634.19
Administrative-
Salaries $ 15,143.43
other 16,879.89 32,023.32
Depreciation 23,938.62 263,126.56
Net operating income $ 239,249004
INTEREST EARNED ON INVESTMENTS 15,463.30
$ 254,712.34
INTEREST EXPENSE ON BONDS AND
CONTRACT PAYABLE 17,215.84
Net income for the year $ 237,496.50
RETAINED EARNINGS
BALANCE, DECEMBER 31, 1967 $ 815,633.11
ADD:
Net income for the year ended
December 31, 1968, as above $ 237,496.50 237,696.50
Decrease in reserve for restricted assets 200000
$1,053,329.61
DEDUCT- Investment in Joint Water Commission 283,201.91
BALANCE, DECEMBER 31, 1968 -$ 770,127.70
The accom.panying notes are an integral part of
these statements of income and retained earnings.
VILLAGE OF N~~ HOPE
WATER AND SEWER F"tJND
- ""'.
NOTES TO FINANCIAL STATE~~TS
DECEMBER 31 $~68
"
1. Restricted assets consist of investments appropriated for the
payment of bonds and interest as provided in the bond indenture.
2. On November 12, 1963, the Village entered into an agreement under
the authority of Minnesota statutes, Section 471.59, with the
City of Crystal and the Village of C~lden Valley for the joint
construction and operation of a water storage and distribution
system using the City of runneapolis 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. Through December 31,
1968, the Water and Sewer Fund of the Village has expended a
total of $474,630.68 as its share of the cost of these joint
facilities, with the balance of costs assessed to benefited
property owners. Approximately $49,800 of Village funds are
required to complete the Village ~ s com.mltment under the agree-
ment; such amounts to be expended during 1969.
3. The indenture underlying the Water and Sewer System Revenue Bonds
payable provides, in part, the following:
a. Annual bond nmturities vary from $5$000 to $25,000 for
each year through 1992. Bonds maturing in the years
1969 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 14 1972, at par
plus accrued interest 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 $320,000 of
bonds maturing in the years 1969 throu~h 1988 and
3.8% on bonds maturing in the years 19 9 through 1992.
Interest is payable semi~annual1y on April lst and
October 1st.