The Winslow mail., 1926-05-07
EXPLANATION

the capital assets and liabilities OF
the Town of Winslow, including
the City Gas Company as of March
31st, 1926
During the past two years the
Sinking Fund Reserve has been in
creased by $7,580.58. This is $280.58
in excess of the budget require
ments which is a direct revenue
from the investment of the sinking
fund. $10,829.19 of the Sinking Fund
has been invested in Town of Wins
low, Street improvement Bonds,
yielding per cent interest. The
balance of the fund amounting to
$351.39 is deposited in the First Ma
tional Bank at per cent interest.
| All of the Street improvement
Bonds held mature before the date
of maturity of the first Town of
Winslow, General Bonds, so the
funds will be available to pay them
off when due.
The item Notes and Bills Receiv-
able, Town General Fund, $40, ,215.-
90, represents cash advances made
>ss.~ the gas account to take care OF
its deficit, including bond interest
paid from the Town General Fund.
| This amount is also carried as q
liability of the Gas Company.
The tangible assets of the City
Gas Company total $S4,218.29. This
includes the new plant and work
at actual cost and the old plant
and mains at the valuations deter
mined in 1920 by a valuation en-
gineer. 1t is on these valuations
that the Depreciation Reserve
charges are based. The old plant
and mains are fully deprecated ov-
er a period of ten years and the new
plant over a period of thirty years.
The depreciation reserve charge
amounts to $3,600.00 year at pres
ent and if deposited at per cent
interest compounded semi-annually
fund will be created which will
be equivalent to the present values
! of the plants This will in reality
amount to a profit of $84,218.29 in
the thirty years, for an amount suf-
ficient to pay off the bonds is be-
ing provided separately. Thus the
City of Winslow, will own, unen-
numbered, new gas plant equiva-
Il u to the present in 1855.
The statement of the operation
of the new gas plant for February
and March that the new plant lacks
only $32.48 of paying all operating
expenses, interest, sinking fund and
amortization charges, fifteen new
consumers will make the plant self
supporting.
The deficit, City Gas Company,
represents the difference between
the assets and liabilities of the gas
company but includes only the op-
Grating loss since August LIST, 1924.
| Sufficient records were not kept
prior to that time to permit the op-
~.ting loss for that period to be
e..cluded. This deficit includes, al
so, all interest, sinking fund, de-
probation and amortization charges
paid by the Town General Fund.
The statement of Liabilities
shows all of the Indebtedness of
the Town of Winslow and the City
Gas Company, including amounts
owed between the several funds.
Value of Assets over Liabilities is
made up of the amounts due the
| Town General Fund and includes
the amounts due from the Gas
Company This item includes only
the capital assets of the Town
which were paid for out Of bond
issues and does not include the as
sets nor liabilities of the Gas Com
pany The Town has real property
valued at approximately $S,000.0O
and equipment valued at 100000
which is not included in this
amount This property was paid
for out of the proceeds of the gen
eral town budget and is shown as
operating expenses of the town fol
the year in which purchased.
Prior to August 1st, 1924, no ade
quate accounting system was main
tanned so that accurate compare
sons can be made. On August 1st
f%s924, the books were audited and {
modern system of accounting in
stalled. The accounting for th'
Gas Company is in accordance witt
the requirements of the Arizon;
Corporation Commission for pri
vately owned gas corporations.
hereby certify that the above il
a full, true and correct statemen
of all monies received into and al
disbursements from the treasury o
the Town of Winslow, including al
transfers and adjustments, for tn