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, 2005 and 2004.
Total assets grew by 6 percent during 2005 to $331 million, including a $27.4
million increase in plant assets related to expansion of the gravity sewer system
to previously unserved areas, construction of the new East Water Reclamation
Facility and ongoing upgrades and expansion of facilities and infrastructure
throughout the utility’s service territory. Restricted Cash and Investments
decreased by $20.3 million as a result of using bond proceeds from previous
year borrowings to fund construction of the East Water Reclamation Facility
and other capital improvement projects under way during 2005. Capital
additions during 2005 also were funded with ANC (aid to new construction)
fees, renewal and replacement funds and cash reserves. 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.
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 are in place to meet our members’ needs
today and in the future. No additional debt was issued during 2005, and the
utility maintained its A+ and A2 bond ratings assigned in 2004 by Standard
& Poor’s and Moody’s Investors Service, respectively.
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
2005 audit report. The complete audit report including Notes to Financial
Statements and Supplemental Information is available upon request.
Debra Bautista
Director of Finance |
