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AUDITED FINANCIAL STATEMENTS
WATERWORKS FUND OF THE VILLAGE OF EDINA, MINNESOTA
December 31, 1967
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CONTENTS
ACCOUNTANTS' REPORT .......... ............................... PAGE 3
BALANCESHEET ................ ............................... 4
NOTESTO BALANCE SHEET ........ ............................... 5
STATEMENTOF SURPLUS ......... ............................... 6
STATEMENTOF INCOME AND EXPENSE .............................. 7
E.RNST & ERNST
FIRST NATIONAL BANK BLDG.
MINNEAPOLIS, MINN. 55402
ACCOUNTANTS' REPORT
To the Village Council
Village of Edina, Minnesota
We have examined the balance sheet of the Waterworks Fund of the Village of Edina
as of December 31, 1967 and the related statements of surplus and income and
expense 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 surplus and in-
come and expense present fairly the financial position of the Waterworks Fund of
the Village of Edina at December 31, 1967 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
May 3, 1968
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ASSETS
CURRENT ASSETS
Cash:
Demand deposits (overdrawn)
Appropriated funds
Investments - at face value or cost:
United States Treasury notes and United States
Government Agency securities
Accrued interest
Less amount segregated and shown below
Accounts receivable:
From customers
Due from other funds
Inventories:
Meters - at cost
Supplies - estimated
Prepaid insurance
OTHER ASSETS
Segregated investments - reserve for debt
retirement
$ 275,242.53
1,607.29
$ 276,849.82
68,974.00
$ 56,072.48
13,075.80
$ 26,695.30
1,750.00
WATERWORKS
BALANCE
VILLAGE
:December
($ 4,797.10)
26,829.75
$ 22,032.65
207,875.82
69,148.28
28,445.30
526.00
TOTAL CURRENT ASSETS $ 328,028.05
FIXED ASSETS — Note A
Land
Land improvements $ . 13,583.74
Distribution system 49436,708.46
Buildings and equipment 1,720,623.25
$6,170,915.45
Less allowance for depreciation 1,344,427.98
Construction in progress
$ 27,556.38
4,8264487.47
39,842.60
68,974.00
4,893,886.45
$5,290,888.50
FUND
SHEET
OF ED INA
31,1967
LIABILITIES AND SURPLUS
CURRENT LIABILITIES
Accounts payable and accrued expenses:
Trade accounts
Salaries and wages
Interest
Current maturities of bonds payable
LONG -TERM DEBT
Bonds-payable - Note B
Less current maturities - shown above
SURPLUS
Invested in fixed assets
Revaluation of fixed assets - Note A
Contributed by special assessments -
Note A
Contributed by General Fund
Earned:
Appropriated
Unappropriated
See notes to balance sheet.
TOTAL CURRENT LIABILITIES
$ 745,360.75
25,967.56
3,439,873.20
11,684.94
$ 671,000.00
48,000.00
$4,222,886.45
$ 95,803.75
272,226.63 368,030.38
$ 24,107.67
755.17
4,108.83
$ 28,971.67
48,000.00
$ 76,971.67
623,000.00
4,590,916.83
$5,290,888.50
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WATERWORKS FUND
NOTES 'TO. BALANCE :'SHEET
VILLAGE OF EDINA
December 31, 1967
Note A - The original utility purchased in 1947 is carried at amounts based on appraisal at
time of acquisition. Subsequent purchases are carried at cost. Watermains for
which the benefited property owners have been assessed are carried at construction
cost with contra - credit to surplus contributed by special assessments. Each of
the aforementioned amounts has been reduced by the depreciation thereon charged to
income, which income has been transferred to earned surplus.
Note B - The annual maturities, due dates and interest rates of the bonds payable are as
follows:
1955 Issue 1959 Issue 1963 Issue Total
Annual maturities and
interest dates
March 1 and
March l and
June 1 and
September 1
September 1
December 1
Interest rates
2.50%
3.40% and
2.80 %, 3.00 %,
3.500%
3.20% and
3.30%
Annual amount of ..
maturities:
1968
$30,000.00
$ 8,000.00
$ 10,000.00
$ 48,000.00
1969
30,000.00
8,000.00
10,000.00
48,000.00
1970
20,000.00
153,000.00
10,000.00
45,000.00
1971
35,000.00
20,000.00
55,000.00
1972
35,000.00
20,000.00
55,000.00
1973
35,000.00
20,000.00
55,000.00
1974
35,000.00
20,000.00
55,000.00
1975
40,000.00
20,000.00
60,000.00
1976
50,000.00
50,000.00
1977
50,000.00
50,000.00
1978
502000.00
50,000.00
1979
50,000.00
50,000.00
1980
50,000.00
50,000.00
$80,000.00. $211,000.00 $380,000.00 $671,000.00
Bonds of the 1955 issue are subject to redemption and prepayment at the option of
the Village on any interest date. Bonds maturing after March 1, 1970 of the 1959
issue shall be subject to redemption and prepayment at the option of the Village
on said date and any interest date thereafter, at a price of par and accrued
interest, plus a premium of $10.00 for each bond redeemed, and in inverse order
of their serial number. Thirty days prior notice must be given to bondholders.
Sim
WATERWORKS FUND
STATEMENT OF SURPLUS
VILLAGE OF EDINA
Year Ended December 31, 1967
* Indicates red figure.
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Invested
Contributed
Contributed
Earned
Surplus
In. "Fixed
by
by
Total
Unappropriated
Appropriated
Assets
Assessments
General "Fund
Revaluation
Balance at January 1, 1967
$4,390,814.62
$153,888.37
$92,476.25
$724,.937.97
$3,380,849.94
$12,012.55
$26,649.54
Additions:
Watermains contributed by special
assessments
140,460.86
140,460.86
Net income for year
59,641.35
59,641.35
$4,590,916.83
$213,529.72
$92,476.25
$724,937.97
$3,521,310.80
$12,012.55
$26,649.54
Transfers:
Provision for depreciation
-
152,805.08
70,357.89*
81,437.60*
327.61*
681.98*
Bonds retired
-
48,000.00*
48,000.00
Additions to fixed assets
-
42,780.67*
42,780.67
Increase in appropriation of funds
for reserve for debt retirement
-
3,327.50*
3,327.50
Balance at December 31, 1967
$4,590,916.83
$272,226.63
$95,803.75
$745,360.75
$3,439,873.20
$11,684.94
$25,967.56
* Indicates red figure.
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WATERWORKS FUND
STATEMENT OF INCOME AND EXPENSE
VILLAGE -OF ED INA
-7- .
Per Cent to
Year Ended
December 31
Increase
Gross Income
1967
1966
Decrease*
1967 1966
Number of meters in use:
At end of year
8,336
7,797
539
At beginning of year
7,797
7,446
351
Income:
Sale of meters
$ 34,337.00
$ 20,611.00
$13,726.00
Less cost of meters sold
28,439.00
17,157.00
11,282.00
GROSS PROFIT ON METERS
$ 5,898.00
$ 3,454.00
$ 2,444.00
Water sales
373,678.00
321,107.00
52,571.00
Penalties
6,494.00
5,327.00
131167.00
Water connection permits
2,840.00
1,885.00
955.00
Tapping fees
194.00
234.00
40.00*
Use of hydrants
13,076.00
11,296.00
1,780.00
Miscellaneous
1,128.35
1,420.73
292.38*
$403,308.35
$344,723.73
$58,584.62
100.000% 100.00%
Expenses:
Pumping:
Labor
$ 69625.00
$ 63,611.00
$ 14.00
Power and light
43,372.00
37,914.00
5,458.00
Supplies and repairs
9,921.00
253.00
9,668.00
Buildings:
Labor
1$15.00
1,230.00
285.00
Fuel
2,098.00
1,891.00
207.00
.Supplies
310.00
380.00
70.00*
Telephone
187.00
204.00
17.00*
Repairs
984.00
186.00
798.00
Insurance
491.00
617.00
126.00*
Water purchased
18,395.00
627.00
17,768.00
Provision for depreciation
21,973.00
27,262.00
5,289.00*
$105,871.00
$ 77,175.00
$28,696.00
26.2.5 22.39
Distribution:
Labor
$ 8,865.00
$ 7,829.00
$ 1,036.00
Materials and supplies
1,832.00
5,385.00
3,553.00*
Operation of meters:
Labor
7,511.00
4,109.00
3,402.00
Supplies and expenses
932.00
11120.00
188.00*
Provision for depreciation
87,321.00
82,077.00
5,244.00
Repairs
9,184.00
10,722.00
1,538.00*
$115,645.00
$111,242.00
$ 4,403.00
28.68 32.27
Tanks, towers and reservoir:
Labor
$ 437.00
$ 401.00
$ 36.00
Power and lease lines
1,696.00
1,502.00
.194.00
Supplies and expenses
5.00
-
5.00
Provision for depreciation
22,678.00
22,668.00
10.00
Insurance
485.00
380.00
105.00
$ 25,301.00
$ 24,951.00
$ 350.00
6.27 7.24.
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WATERWORKS FUND
STATEMENT OF INCOME:AND EXPENSE ( Cont'd)
Expenses (cont'd):
Water treatment:
Labor
Supplies and expense
Provision for depreciation
Vehicle operations:
Allocated from equipment
pool
Provision for depreciation
Administrative and general:
Salaries:
Superintendent
Clerical
Meter reading
Meter reading supplies
Office supplies, postage,
telephone, hospitalization,
Year Ended December 31 Increase
1967 1966 Decrease*
$ 4,207.00 $ 2,239.00 $ "-x.,968:00
11,584.00 11,018400 5.66.00
18,616.00 18,616.00 -
$ 34,407.00 $ 31,873.00 $ 2,534.00
$ 5,676.00
1, 544.00.:
$ 7,220.00
$ 10,088.00
5,497.00
9,354.00
158.00
etc. 5,700.00
Supervision 3,000.00
Provision for depreciation 673.00
Professional services 1,9.02.00
Supplies and expenses 829.00
Building rental 624.00
$ 37,825.00
TOTAL EXPENSES $326,269.00
OPERATING INCOME $ 77,039.35
Income en investments 4644.00
$ 81,683.35
Other deductions:
Per.Cent to
Gross Income
1967. 1966
8.531 9.24%
$ 4,740.00 $ 936.00
1,538.00 6.00
$ 6,278.00 $ 942.00 1.79 1.82
$ 9,384.00 $ 704.00
4,494.00 1,003.00
5,943.00 3,411.00
118.00 40.00
5,580.00
120.00
$ 23,309.00
$ 1,388.00*
3,000.00
-
124.00
3.00*
664.00
9.00
$ 23,433.00
$ 1,391.00* 5.46" 6.80
13,150.00
752.00
$ 42,460.73
$17,180.62 14',,79% 12.32%
633.00
.196.00
540.00
84.00
$ 31,506.00
$ 6;319.00
9.38-
9.14
$283,025.00
$43,244.00
8030%
82.10%
$ 61,698.73
$15,340.62
19.=
17.90%
4,195.00
449.00
1.15
1.22
$ 65,893.73
$15,789.62
20.Z5M
19.12%
Interest on bonds
$ 21,921.00
$ 23,309.00
$ 1,388.00*
Fiscal agent service charge
121.00
124.00
3.00*
$ 22,042.00
$ 23,433.00
$ 1,391.00* 5.46" 6.80
NET INCOME
.$ 59,641.35
$ 42,460.73
$17,180.62 14',,79% 12.32%
Depreciation charged to
operations included in
expenses_
$1523,805.00
$152,827.00
$ 22.00*
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