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HomeMy WebLinkAbout1967 Waterworks Fund Financial Statementssff•.1.. AUDITED FINANCIAL STATEMENTS WATERWORKS FUND OF THE VILLAGE OF EDINA, MINNESOTA December 31, 1967 ..1.. 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 -3- 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 =4- 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. -6- 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. -6- 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. -7- . 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* -8