|
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, 2006 and 2005.
Total assets grew by 9 percent during 2006 to $364 million. This growth reflects
more than $42 million in net capital additions, including construction of the
new East Water Reclamation Facility and ongoing upgrades and expansion of the
water distribution and wastewater collection systems throughout the utility’s
service territory. Capital additions during 2006 were funded with a combination
of bond proceeds from previous year financings, ANC (aid to new construction)
fees, renewal and replacement funds, cash reserves and draws on a non-revolving
line of credit established during 2006.
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 2006, the utility took advantage of a favorable
interest rate environment by refinancing a portion of its outstanding long-term
debt. The refinancing will save the utility more than $2 million in interest
costs during the next 14 years.
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 2006 audit
report. The complete audit report including Notes to Financial Statements and
Supplemental Information is available upon request.
Debra Bautista
Director of Finance |
