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To The Members of Bonita Springs Utilities, Inc.:
The following pages summarize the financial position, results of operations, changes in members’ equity and cash flows for Bonita Springs Utilities, Inc. for the years ended December 31, 2004
and 2003.
Total assets grew by 19 percent during 2004 to $313 million. The growth included an additional $20.6 million of plant assets related to completion of the Reverse Osmosis Water Treatment Plant, expansion of the gravity sewer system to previously unserved areas, permitting and design of a new East Water Reclamation Facility and ongoing upgrades and expansion of facilities and infrastructure. Restricted Cash and Investments also increased $18.8 million due to the issuance of additional bonds to finance the East Water Reclamation Facility and other capital improvement projects planned over the next few years. Major investment in capital assets remains a necessity to assure the service needs of our expanding membership are met and to maintain quality service to all members. Capital additions during 2004 were funded with a combination of ANC (aid to new construction) fees, cash reserves and proceeds from additional borrowings.
The utility’s working capital position, debt-service coverage and credit ratings remain strong as we continue expanding our systems to ensure adequate capacity and quality infrastructure is in place to meet our members’ needs today and in the future. Of note during 2004, the utility’s rating on outstanding bonds by Standard & Poor’s was upgraded from A to A+, and Moody’s Investors Service reaffirmed its A2 rating.
The summary Financial Statement balances presented in this annual report are in agreement with the Financial Statements audited by Purvis, Gray and Company, Certified Public Accountants, which are contained in the utility’s 2004 audit report. The complete audit report, including Notes to Financial Statements and Supplemental Information, is available upon request.
Debra Bautista
Director of Finance
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