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Home My WebLink About2025rilffli-orlaul CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS Page Title Page 1 Table of Contents 2-3 Introductory Section 4 Letter of Transmittal 5-7 List of Principal Officials 8 Organizational Chart 9 Financial Section Independent Auditor's Report 10-12 Management Discussion and Analysis 13-22 Basic Financial Statements: Statements of Net Position 23 Statements of Activities 24 Balance Sheets - Governmental Funds 25 Statements of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 26-27 Statements of Position - Proprietary Funds 28 Statements of Revenues, Expenses, and Changes in Net Position - Proprietary 29 Statements of Cash Flows - Proprietary Funds 30-31 Notes to Financial Statements 32-47 Required Supplementary Information 48 Budgetary Comparison Schedule - General Fund 49 Budgetary Comparison Schedule - Highway, Streets and Roads 50 Schedule of Employer's Share of Net Pension Liability 51 Schedule of Employer Contributions 52 Notes to Required Supplementary Information 53 6 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2025 TABLE OF CONTENTS - CONTINUED Page Other Supplementary Information 54 Combining Balance Sheet - Nonmajor Governmental Funds 55 Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 56 Statements of Net Position - Internal Service Funds 57 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 58 Statements of Cash Flows - Internal Service Funds 59 Budgetary Comparison Schedule - Nonmajor Governmental Funds 60 Statistical Section 61 Statistical Section - Table of Contents 62 Financial Trends 63-70 Revenue Capacity 71-74 Debt Capacity 75-76 Operating Information 77-79 Independent Auditor's Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 80-81 9 INTRODUCTORY SECTION CHUBBUCI( 1 0 A H 0 www.ci!yofchubbuck.us 290 E. Linden Avenue Chubbuck, ID 83202 (208) 237-2400 phone (208) 237-2409 fax MAYOR COUNCIL MEMBERS Rodney Burch Roger Hernandez Dan Heiner Melanie Evans Norman Reece March 25, 2026 The Honorable Mayor Rodney Burch, Members of the City Council, and Citizens of the City of Chubbuck: Idaho State Law requires that all general-purpose local governments with an annual budget that exceeds two hundred fifty thousand dollars submit copies of their audited financial statements to the legislative council. The statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GARS) by a firm of licensed certified public accountants. Pursuant to those requirements, we hereby issue the comprehensive annual financial report for the City of Chubbuck for the fiscal year ended September 30, 2025. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive frame -work of internal control that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Deaton & Company, Chartered, a find of licensed certified public accountants has issued an unmodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2025. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. Profile of the City of Chubbuck The City of Cbubbuck (estimated 2025 population of 16,800) was incorporated in 1950. Chubbuck is located in the southeastern portion of the State of Idaho. Chubbuck has a land area of 5.90 square miles and is bordered by the City of Pocatello, with its own estimated population of 58,600. The City is located in Bannock County with an estimated population of 91,410. The City is empowered to levy property taxes on both real and personal property within the city limits. It also is empowered by state statue to extend its corporate limits by annexation, which it had done from time to time. The City of Chubbuck operates under the Council -Mayor form of government. Policy-making and legislative authority are vested in a governing council (City Council) consisting of the Mayor and four other members, all elected on a non-partisan basis. The Council is responsible for passing ordinances, adopting budget, appointing committees, approval of internal control framework and hiring city management. The Mayor acts as the Chief Executive Officer and oversees the day-to-day operations of the City. The Mayor and Council members are elected at large for 4 -year terms, with two of the Council members standing for election every two years. The City of Chubbuck provides a full range of services. These services include Public Safety (police, fire, animal control, and building inspection); Environmental Health (sanitation, water, waste water treatment and storm water management); Transportation (street & highway maintenance and traffic engineering); Recreational (parks and recreation); Neighborhood Quality (engineering, planning and development, community services) and Administration (mayor/council, finance, elections, human resources, legal risk management, and information technology). In addition to general government activities, the Mayor and City Council exercise, or have the ability to exercise, oversight of the Chubbuck Development Authority, a legally separate corporation. Therefore, its activities are included as a separate component unit in the reporting entity. The annual budget serves as the foundation for the City of Chubbuck's financial planning and control. After reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests during May. The Chief Financial Officer and Mayor are responsible for preparing a draft budget for the Council. The budget is prepared by fiend, function and activity, and includes information on the past year, current year estimates and requested appropriation for the next fiscal year. Prior to August 1, the City's Chief Financial Officer and the Mayor submit the proposed budget to the City Council for review. The City Council holds public hearings and may add to, subtract from or change the proposed budget, but may not change the form of the budget. Prior to August 30, the budget is legally enacted through passage of the annual appropriation ordinance (not in excess of the proposed budget) by the City Council. Expenditures may not exceed budgeted appropriations at the fund level. City management can legally amend or transfer appropriations within individual funds but not between funds which requires the approval of the City Council in a budget amendment, which follows a public notice, public hearing and amended ordinances adoption process similar to the adoption of the original budget. Budgets are integrated into the accounting system to facilitate management control during the year. The Council reviews service levels for all departments prior to entertaining budget requests for the next fiscal year. Revenue projections receive equal attention and the Council makes budget decisions sufficient to balance the budget against projected revenues. Cash balances and budget to actual trends are monitored monthly. The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the City and, in particular, the Clerk's Office. Each member of these departments has our sincere appreciation for the contributions made in the preparation of this project. Credit also must be given to the Mayor and the City Council for their support for maintaining high standards of professionalism in the management of the City of Chubbuck's finances. Respectfully submitted March 25, 2026, Rodney Burch Mayor Daniel Christensen City Accountant ric Jablonski City Treasurer CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2025 Title Elected Officials Mayor Council President Council Member Council Member Council Member City Officials City Attorney Public Works Director City Engineer Sewer/Water Superintendents Sanitation/Streets Superintendent Treasurer City Clerk Human Resource Officer City Accountant Building, Planning, and Development Police Chief Computer Information Systems Parks & Recreation Fire Chief Name Kevin England Roger Hernandez Melanie Evans Dan Heiner Norman Reece Ryan Lewis Bridger Morrison Bridger Morrison Scott Baker/Cameron Lusk Ryan Sullivan Rich Morgan Joey Bowers Scott Gummersall Dan Christensen Don Matson Nick Sasser Joey Bowers Aaron Schilhabel Merlin Miller r CITY OF CHUBBUCK ORGANIZATION CHART I Building, PUBLICLEGAL CLERK HUMAN FINANCE FIRE POLICE Planning,& WORKS I SERVICES RESOURCES I Development L INFORMATION UTILITY ANIMAL TECHNOLOGY BILLING CONTROL r IENGINEERING HIGHWAY r WATER 1 WASTEWATER I SANITATIONPARKS STREETS & ROADS i DEVELOPMENT PLANNING BUILDING SERVICES I 9 Deaton & Company, Chartered Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208) 232-5825 Members of the Idaho Society of Certified Public Accountants Members oft he American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Report on the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Chubbuck as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities information of the City of Chubbuck, Idaho, as of September 30, 2025, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Chubbuck, Idaho, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Chubbuck's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and pension schedules on pages 13-22, 49-50 and 51-52, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information The combining and individual nonmajor fund financial statements and budgetary comparison schedule - nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The prior year summarized comparative information has been derived from the City's 2024 audited financial statements and, in our report dated May 22, 2025, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information. This information is consistent, in all material respects, with the audited financial statements from which it has been derived. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 25, 2026, on our consideration of the City of Chubbuck's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Chubbuck's internal control over financial reporting and compliance. Chubbuck, Idaho March 25, 2026 CITY OF CHUBBUCK, IDAHO Management's Discussion and Analysis For the Year Ended September 30, 2025 As management of the City of Chubbuck, we offer readers of the City of Chubbuck's financial statements this narrative overview and analysis of the financial activities for the fiscal year ended September 30, 2025. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the notes to financial statements. Financial Highlights • The assets and deferred outflows of the City of Chubbuck exceed its liabilities and deferred inflows at the close of the most recent fiscal year by $111,524,533 (net position). • The City's net position increased by $5,883,491. Approximately 50 percent of this increase, $2,950,052, is attributed to capital contributions. • At the end of the current fiscal year, the unassigned general fund balance was $10,197,665 or 94 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $1,795,887, and operating expenses increased by $1,036,037. These differences are due to a combination of increases in services rendered and increases in operating costs, respectively. • During the current fiscal year, City of Chubbuck's governmental and business -type liabilities had a decrease of $3,930,687 from $28,064,104 to $24,133,417. The 14 percent decrease was primarily due to a reduction in accounts payable, unearned revenue, and net pension liabilities. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Chubbuck's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all the City's assets, deferred outflows, and liabilities with deferred inflows, with the difference between each reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City's is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All changes in the assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). 13 Both government -wide financial statements distinguish functions of the City of Chubbuck that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Chubbuck include general government and administration, public safety, parks, and highway streets and roads. The business -type activities of the City include water and sewer, and sanitation operations. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated from specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All the City of Chubbuck funds can be divided into two categories: governmental funds and proprietary funds. Governmental Funds. Governmental funds are used to account for the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing equipment. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Chubbuck maintains seven individual governmental funds. Information's is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and Highway, Streets, and Road Fund, which are the City's two major governmental funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund date for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget of its general fund, major funds, and its non -major funds. Budgetary comparison schedules have been provided for these funds to demonstrate compliance with these budgets. The basic governmental fund financial statements may be found on pages 23-27 of the City's financials. Proprietary Funds. The City of Chubbuck maintains two different types of proprietary funds: three enterprise funds and one internal service fund. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Chubbuck uses enterprise funds to account for its Water department, Waste Water department, and Sanitation department. 14 The internal service fund is an accounting device used to accumulate and allocate costs internally among the City of Chubbuck's various functions. The City of Chubbuck uses the internal service fund to account for its central garage operations. The internal service fund is allocated proportionally between governmental and business -type funds. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements include the operational and financial information for all enterprise funds. The Water, Waste Water, and Sanitation funds are major funds, and their information is shown in separate columns. The internal service fund and the non -major enterprise funds are combined into a single, aggregated presentation in the proprietary funds' financial statements. Individual fund data for the non - major enterprise fund is provided in the form of coming in statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget for its proprietary funds. However, the City does not provide budgetary comparison schedules for proprietary funds. The basic proprietary fund financial statements may be found on pages 28-31 of the City's financials. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements may be found on pages 32-47 of the City's financials. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's budgeted versus actual expenses and revenues, the schedule of employer's share of net pension liability and schedule of employer contributions. The schedules are followed by the internal service fund financial statements, and nonmajor budget comparison schedule. The other supplementary information is concluded with the statistical section. Government -wide Financial Analysis As noted earlier, the net position may serve over time as useful indicator of government's financial position. In the case of the City of Chubbuck, assets exceeded liabilities by $111,524,533 as of September 30, 2025. The largest portion of the City of Chubbuck's net position is reflected in its net investment in capital assets (e.g., land, building, equipment, improvements, work -in -process, and infrastructure), less accumulated depreciation and any debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 15 Below is a summary of the City of Chubbuck's Net Position statement. City of Chubbuck's Net Position ASSETS Current and other assets Noncurrent assets Total assets DEFERRED OUTFLOWS Pension LIABILITIES Current liabilities Long-term liabilities outstanding DEFERRED INFLOWS Pension Certificate of participation NET POSITION Net investment in captial assets Restricted Unrestricted Total net position Governmental Activities Business Activities Total 1)n11r nrv,e n1)e nnnr Anna 11,605,451 $ 11,072,563 5 29,384,764 8 27,243,799 $ 40,990,215 $ 38,316,362 nn -lin c7n An C71 7 1 co 'I n1 non c7 c7d Inn In7 ocl non in7 Id7 nen 761,565 954,861 267,577 353,158 1,029,142 1,308,029 724,015 1,056,535 3,227,693 3,331,737 3,951,708 4,388,272 4,197,351 5,621,580 15,984,358 18,054,252 20,181,709 23,675,832 4,921,366 6,678,115 19,212,051 21,385,989 24,133,417 28,064,104 1,270,881 - 446,527 - 1,717,408 - 7,771,09 8,119,034 4,735,903 5,047,645 12,506,907 13,166,679 49,560,722 49,345,262 44,891,557 43,944,017 94,452,279 93,289,279 167,600 168,800 167,600 168,800 1,417,378 2,542,255 18,322,032 14,725,218 16,904,654 12,182,963 S 48,143,344 S 46,803,007 S 63,381,189 S 58,838,035 5111,524,533 5105,641,042 The restricted portion of the City of Chubbuck's net position, $167,600, represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $16,904,654 may be used to meet the City's ongoing obligation to citizens and creditors. As of September 30, 2025, the City reported positive balances in the two categories of net position, for the government as a whole and business -type activities. At the end of the current fiscal year, 84 percent of the total liabilities are made up of noncurrent liabilities. The total assets are 72 percent made up of non-current assets. Governmental activities. Governmental activities' key elements are broken down in the following charts. The general activities increased net position by $1,340,337, and the business -type activities increased net position by $4,543,154. The City of Chubbuck's direct charges to users of governmental services totaled $700,717. These charges are for park rentals, building permits and other fees related to public safety and administration. The general government accounts for 76 percent of the total charges for services. Parks and recreation account for 20 percent of total charges for services. 16 Below is summary of the City of Chubbuck's Changes in Net Position. City of Ch11bbuck's Changes in Net PDsitiDn 17 Governmental Activities Business Activities Total 2025 2024 2025 2024 2025 2024 REVENUES Program revenues; Ch a rg es f o rs ervices $ 704,717 5 781,913 515,290,435 $13,494,548 515,941,152 5 14,276,451 Operating grants and contribution 31,699 186,524 18,176 15,598 49,875 202,122 Capital grants and contributions 1,454,636 1,227,343 1,495,835 1,445,717 2,950,471 2,673,060 General revenue; Propertytaxes 8,608,121 8,827,191 - - 8,648,121 8,827,191 Franchise fees and intergovernme 3,727,006 3,925,854 - - 3,727,406 3,925,854 Other 1,S27,025 1,141,27S 542,490 773,117 1,959,516 1,914,S% Total Revenues 15,849,205 16,090,098 17,446,936 15,728,980 33,296,141 31,819,078 EXPENSES General government 1,458,952 1,575,564 - - 1,458,952 1,575,564 Publicsafety 8,178,139 7,498,049 - - 8,178,139 7,498,049 Highway, streets and roads 3,096,611 2,860,038 - - 3,496,611 2,860,038 Parks and recreation 1,221,011 1,119,534 - - 1,221,011 1,119,534 Building, planning, developing 554,155 924,893 - - 554,155 924,893 Water - - 3_909,574 3,553,694 3,509,574 3,553,694 Sewer - - 3,990,553 3,970,973 3,990,653 3,970,973 Sanitation - - 2,780,379 2,602,186 2,780,379 2,502,185 Health p Ian trust - - 2,623,176 1,754,373 2,623,176 1,754,373 Total expenses 14,508,868 13,978,178 12,903,782 11,881,222 27,412,650 25,859,400 NET CHANGE IN NET POSITION 1,340,337 2,111,920 4,543,154 3,847,758 5,883,491 5,959,578 NET POSITION beginning 46,803,007 44,591,087 58,838,435 54,940,277 105,641,042 99,681,364 NET POSITION ending 548,143,344 546,803,007 $63,381,189 $58,838,435 5111,524,533 5 105,541,042 17 Revenue by Source - Government Activities D-h.� S 1,327 326 Franchise fees and intergovernmental 3,727,006 , 24% Charges for services $700,717, 5% 0 Operating grants and contributions $31,699,0% Property taxes .$ 8,608,121 , 54% Capital grants and corrtributions $ 1,454,636, 9% Expenses and Program Revenues — Governmental Activities Expenses and Program Revenues -Governmental Activities 9,000,000 8,000,000 7,000,000 6,000,000 5,000,000 4,000,000 3,000,000 2,000,000 1,000,000 S ■ Expenses ■ Revenue • The majority of the City of Chubbuck's general governmental activities' revenue is received from property tax of 54 percent. • When all taxes, franchise fees, and intergovernmental revenues are added together, they make up 86 percent of the budget. • When revenues are compared to expenses, it shows that most of the City of Chubbuck's programs are not self-supporting. They all require tax support to continue at their current level of service. For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. No significant transaction occurred outside of the major funds for fiscal year 2025. No extraordinary expenses were paid, or revenues were received during the year. The most significant major fund in the City is the general fund. The notable transactions within the general fund this year mainly consisted of law enforcement expenses, fire department expenses, and street maintenance. 19 Business -type activities. Businesses -type activities' key elements are broken down in the following charts. Revenue by Source - Business Type Activities Otter $642,490 3.68% Capital g•a its arc cedicated assets $1,514,011 9.68% C ha rges fo r servi ces $15,290,435 87.64% Expenses and Program Revenue - Business Type Activities $7,000,000 $6,400,440 $5,000,000 $4,400,444 $3,000,000 $2,400,444 $1,000,000 Water Se we r Sa -]-tat-0-1 Revenue M Expense • One of the major sources of the City of Chubbuck's business -type activities' revenue is received from service revenue. Currently, the City of Chubbuck's business type activities do not use property taxes for any type of funding. • When revenues are compared to expenses, it shows that all the City of Chubbuck's business - type activities are self-supporting. 20 Financial Analysis of the Government's Funds As noted earlier, the City of Chubbuck uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Chubbuck's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Chubbuck's financing requirements. Unreserved fund balance may serve as a useful measure of the government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year the City of Chubbuck's governmental funds reported combined ending fund balances of $10,853,211. Of which $7,887,381 of this total is unassigned fund balance. The general fund is the chief operating fund of the City of Chubbuck. In the general fund, the City budgeted for no change in the fund balance. The total governmental operating revenues were more than operating expenditures by $748,400. With the other financing sources and uses, the net change in the governmental funds increased $842,412 for fiscal year 2025. The net change in the highway, streets, and roads fund was $0. As a measure of liquidity, it may be useful to compare both total unassigned fund balance and total fund expenditures. The total unassigned fund balance represents 58 percent of total governmental fund expenditures. Proprietary funds. The City of Chubbuck's proprietary fund statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net positions of the respective proprietary funds are Water: $7,668,538, Sewer: $8,841,099, and Sanitation: $584,640. The water fund had an increase in net position of $1,914,429; the sewer fund had an increase in net position of $2,883,817; and the sanitation fund had a decrease in net position of $(218,375). General Fund Budgetary Highlights The City made no revision to the original appropriations approved by the City Council. The general fund's actual revenues were less than the budget and expenditures were less than the budget. The difference accounts for a $429,215 increase in the general fund balance. The major variances in expenditures were due to a decrease in fire control and parks expenditures. The highway, streets and roads fund actual revenues and expenditure were less than the budget. The difference accounts for a $0 change in the highway, streets, and roads fund balance. This was a result after a transfer out of $193,005. Capital Asset and Debt Administration Capital assets. The City of Chubbuck's investment in capital assets for its governmental and business - type activities as of September 30, 2025, amounts to $103,317,342 (net of accumulated depreciation). This investment in capital assets includes land, vehicles, equipment, other improvements, and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year was $14,192,922. The increase in assets includes development contributions of $2,950,052. 21 Land Building & Improvements Vehicles & Equipment Infrastructure Work in Progress Water Rights Total City of Chubbuck's Capital Assets Governmental Activities Business Ar.ivi ies To al 2025 2024 2025 2024 2025 2024 5 3,248,479 5 3,248,479 S 2.159.817 S 2,159,817 S 5,408,296 S 5,408,296 17,377,350 17,377,350 57.603.069 54,969,516 74,980,419 72,346,866 7,271,417 5,456,530 9.322.867 8,986,312 16,594,284 14,442,842 34,810,856 25, 815, 857 - - 34, 810, 856 25, 815, 857 - 9,172,949 33,790 1,204,795 33,790 10,377,744 - - 2,421,167 2,421,167 2,421,167 2,421,167 S 62,708,102 S61.071,165 S71.540.710 S69,741.607 S 134,248,812 S 130,812,772 Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 40 of the City's financials. Long-term debt. At the end of the current fiscal year, the City of Chubbuck had a total long-term debt outstanding of $17,005,390. Of this amount, $7,417,010 is comprised of notes to the Department of Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a remaining balance of $160,000 used for purchasing water rights. The City had a note payable for water tank repairs with a remaining balance of $12,012, a note payable for water distribution with remaining balance of $8,486,903, and a note payable for sanitation system setup with remaining balance of $198,794. The City purchased a fire aerial ladder truck with a debt obligation balance of $730,672. In the State of Idaho statutes section 50-3108, the State of Idaho mandates a general obligation debt limit of 9 percent of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has general obligation debt with a remaining balance of $730,672. The limit totaled $190,527,716 based on 2025's estimated assessed values of 2,116,974,619. Therefore $189,797,044 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 11 on pages 42-44 of this report. Request for information. The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have any questions about this report or need any additional financial information, contact the Treasurer at 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400. 22 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2025 23 See accompanying notes to financial statements Governmental Business -type Development Activities Activities Total Authority ASSETS Current assets Cash and cash equivalents $ 13,378,941 $ 25,147,410 $ 38,526,351 $ 651,702 Property taxes receivable 633,568 - 633,568 24,684 Intergovernmental receivables 301,378 1,658 303,036 - Interest receivable 31,164 3,077 34,241 Lease receivable 83,014 - 83,014 Grant receivable 1,465 15,980 17,445 Internal balances due to/from (3,077,366) 3,077,366 - - Prepaid expenses 250,191 58,678 308,869 4,648 Other accounts receivable 3,096 1,080,595 1,083,691 - 11,605,451 29,384,764 40,990,215 681,034 Noncurrent assets Restricted assets Bond reserves - 167,600 167,600 - Utility deposits 699,477 699,477 Investments - 3,491,515 3,491,515 - Capital assets 62,708,103 71,540,710 134,248,813 1,260,321 Accumulated depreciation (13,147,381) (17,784,090) (30,931,471) - Lease and subscription assets 335,785 24,894 360,679 Accumulated amortization of assets (156,928) (16,777) (173,705) - 49,739,579 58,123,329 107,862,908 1,260,321 61,345,030 87,508,093 148,853,123 1,941,355 DEFERRED OUTFLOWS Pension 761,565 267,577 1,029,142 - LIABILITIES Current liabilities Accounts payable 267,375 585,830 853,205 256,187 Accrued payroll 147,007 68,076 215,083 - Accrued bond interest - 633 633 Interest payable 13,224 57,567 70,791 Unearned revenue and lease liabilities 79,390 75,676 155,066 Current portion compensated absences 121,748 43,572 165,320 - Current portion of bonds payable - 167,355 167,355 61,085 Current portion of long-term debt 95,271 1,342,371 1,437,642 - Health Claims incurred but not reported - 187,136 187,136 Utility deposits - 699,477 699,477 - 724,015 3,227,693 3,951,708 317,272 Noncurrent liabilities Bonds payable, net unamortized premium - - - 1,052,592 Notes payable 635,401 14,772,347 15,407,748 - Lease and subscription obligation 139,313 6,282 145,595 Accrued compensated absences 486,990 174,286 661,276 Net pension liabilities 2,935,647 1,031,443 3,967,090 - 4,197,351 15,984,358 20,181,709 1,052,592 4,921,366 19,212,051 24,133,417 1,369,864 DEFERRED INFLOWS Pension 1,270,881 446,527 1,717,408 - Certificate of participation 7,771,004 4,735,903 12,506,907 - NET POSITION Net investment in capital assets 49,560,722 44,891,557 94,452,279 1,260,321 Restricted - 167,600 167,600 331,531 Unrestricted (1,417,378) 18,322,032 16,904,654 (1,020,361) $ 48,143,344 $ 63,381,189 $ 111,524,533 $ 571,491 23 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2025 Component Unit: Chubbuck Development Authority $ 804,138 $ (804,138) $ 804,138 $ (804,138) General Business -type Development Activities Activities Total Authority Net (expense)/revenue General revenues Property taxes Franchise fees Intergovernmental income Interest income Gain from asset disposal Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION $ (12,321,817) $ 3,900,664 $ (8,421,153) $ (804,138) 8,608,121 8,608,121 Program Revenues 215,779 Total 215,779 - 3,511,227 Operating Capital Net 580,286 603,660 Charges for Grants and Grants and (Expense) Development 22,212 Expenses Services Contributions Contributions Revenue Authority 13,662,153 642,490 14,304,643 511,981 Functions/Programs 4,543,154 5,883,491 (292,157) 46,803,007 58,838,035 Primary Government: 863,648 $ 48,143,344 $ 63,381,189 $ 111,524,533 $ 571,491 Governmental activities: General government $ 1,261,874 $ 533,210 $ 2,883 $ $ (725,782) $ Law enforcement 5,472,394 26,354 7,295 (5,438,745) Fire control 2,705,745 - - (2,705,745) Highway, streets, and roads 3,096,611 - - 1,454,636 (1,641,975) Parks and recreation 1,221,011 141,153 10,000 - (1,069,858) Building, Planning, Developing 554,155 - - (554,155) Other special funds 197,078 - 11,521 - (185,557) 14,508,868 700,717 31,699 1,454,636 (12,321,817) Business -type activities Water 3,509,574 4,081,963 18,176 1,054,353 1,644,918 Sewer 3,990,653 6,128,375 - 441,482 2,579,204 Sanitation 2,780,379 2,493,366 - (287,013) Health plan trust 2,623,176 2,586,731 - - (36,445) 12,903,782 15,290,435 18,176 1,495,835 3,900,664 Total primary government $ 27,412,650 $ 15,991,152 $ 49,875 $ 2,950,471 $ (8,421,153) $ Component Unit: Chubbuck Development Authority $ 804,138 $ (804,138) $ 804,138 $ (804,138) General Business -type Development Activities Activities Total Authority Net (expense)/revenue General revenues Property taxes Franchise fees Intergovernmental income Interest income Gain from asset disposal Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION $ (12,321,817) $ 3,900,664 $ (8,421,153) $ (804,138) 8,608,121 8,608,121 485,477 215,779 215,779 - 3,511,227 3,511,227 - 580,286 603,660 1,183,946 18,426 5,812 16,400 22,212 - 740,928 22,430 763,358 8,078 13,662,153 642,490 14,304,643 511,981 1,340,337 4,543,154 5,883,491 (292,157) 46,803,007 58,838,035 105,641,042 863,648 $ 48,143,344 $ 63,381,189 $ 111,524,533 $ 571,491 24 See accompanying notes to financial statements LIABILITIES Accounts payable $ 170,432 CITY OF CHUBBUCK, IDAHO $ 40,500 $ 265,469 Accrued payroll 129,767 17,240 BALANCE SHEET Accrued compensated absences 104,333 17,415 121,748 GOVERNMENTAL FUNDS 3,077 13,224 Due to other funds - SEPTEMBER 30, 2025 3,077,366 414,679 3,169,635 Highway, DEFERRED INFLOWS OF RESOURCES Streets, Other - 121,535 Unavailable revenues - leases 79,390 General and Roads Governmental 185,125 15,800 Fund Fund Funds Total ASSETS Committed - - 2,965,830 2,965,830 Cash $ 9,724,409 $ 648,202 $ 3,006,330 $ 13,378,941 Accounts receivable 3,096 - - 3,096 Property and sales taxes receivable 614,981 18,587 633,568 Intergovernmental receivables 89,149 208,362 297,511 Interest receivable 31,164 - 31,164 Prepaid expense 250,191 - 178,858 250,191 Lease receivable 83,014 - expenditures and therefore are not reported in the funds: 83,014 Grant receivable 1,465 - 1,465 Deferred outflows and inflows of resources related to pensions and certificate of participation $10,797,469 $ 875,151 $ 3,006,330 $ 14,678,950 LIABILITIES Accounts payable $ 170,432 $ 54,537 $ 40,500 $ 265,469 Accrued payroll 129,767 17,240 - 147,007 Accrued compensated absences 104,333 17,415 121,748 Interest Payable 10,147 3,077 13,224 Due to other funds - 3,077,366 3,077,366 414,679 3,169,635 40,500 3,624,814 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - taxes 105,735 15,800 - 121,535 Unavailable revenues - leases 79,390 - 79,390 185,125 15,800 - 200,925 FUND BALANCES Committed - - 2,965,830 2,965,830 Unassigned 10,197,665 (2,310,284) 7,887,381 10,197,665 (2,310,284) 2,965,830 10,853,211 $10,797,469 $ 875,151 $ 3,006,330 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds, net of accumulated depreciation of $13,147,381. 49,560,721 Lease assets are not reported in the funds, net of amortization 178,858 Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds: Property tax 121,535 Deferred outflows and inflows of resources related to pensions and certificate of participation are applicable to future periods and, therefore, are not reported in the fund: Deferred outflows of resources related to pensions 761,565 Deferred inflows of resources related to pensions (1,270,881) Deferred inflows of resources related to certificates of participation (7,771,004) Internal service funds are used to charge the costs of certain activities, such as equipment maintenance to individual funds. The assets and liabilities of the internal services funds applicable to governmental activities are included in governmental activities in the statement of net position. 1,961 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Lease liability (139,313) Note payable (730,672) Accrued compensated absences (486,990) Net pension asset/(liability) (2,935,647) Net position of governmental funds $ 48,143,344 1007 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 REVENUES Property taxes Franchise fees Intergovernmental income Court Revenue Parks revenue Licenses, permits and fees Grants Leases and rents Interest income Donations Charges for services Other revenues EXPENDITURES General government Law enforcement Fire control Highway, streets, and roads Parks and recreation Building, planning, and development Other purchased services Capital outlays Lease and subscription capital outlays Debt service Equipment note payable principle expense Principal lease and subscription expense Interest expense EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from leases and subscriptions Proceeds from sale of assets Transfers in (out) NET CHANGE IN FUND BALANCES BEGINNING FUND BALANCE ENDING FUND BALANCE 26 See accompanying notes to financial statements Highway, Streets, Other General and Roads Governmental Fund Fund Funds Total $ 7,476,332 $ 1,106,282 $ - $ 8,582,614 215,779 - - 215,779 2,034,888 1,476,339 - 3,511,227 26,354 - - 26,354 139,625 - - 139,625 362,170 - - 362,170 18,295 - 1,883 20,178 134,980 - - 134,980 498,528 31,066 50,692 580,286 11,521 - - 11,521 1,528 - - 1,528 113,196 4,492 623,240 740,928 11,033,196 2,618,179 675,815 14,327,190 936,901 - - 936,901 5,201,637 - - 5,201,637 2,436,691 - - 2,436,691 - 2,421,207 - 2,421,207 1,083,357 - - 1,083,357 545,970 - - 545,970 - - 197,078 197,078 356,700 - 65,540 422,240 88,201 - - 88,201 92,469 - - 92,469 121,210 823 - 122,033 27,862 3,144 - 31,006 10,890,998 2,425,174 262,618 13,578,790 142,198 193,005 413,197 748,400 88,200 - - 88,200 5,812 - - 5,812 193,005 (193,005) - - 287,017 (193,005) - 94,012 429,215 - 413,197 842,412 9,768,450 (2,310,284) 2,552,633 10,010,799 $ 10,197,665 $ (2,310,284) $ 2,965,830 $ 10,853,211 26 See accompanying notes to financial statements (Continued) CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Total Reconciliation of the change in fund balances - total governmental funds to the change in net position of governmental activities: Net change in fund balances - total governmental funds $ 842,412 Amounts reported for governmental activities in the Statement of Activities are different because Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets. Capital asset contributions from other entities are not recognized as a revenue for governmental purposes, but are required to be recognized on the Statement of Activities: Contributed capital assets 1,454,636 Capital asset purchases capitalized 422,240 Depreciation expense (1,661,417) 215,459 The net affect of sales transactions involving capital assets The net affect of lease agreements that are reported in the Statement of Activities, but do not provide current financial resources and are not reported in the governmental funds (14,780) Unavailable revenues are not recorded as current period receipts 25,507 Internal service funds are used to charge the costs of certain activities, such as employee health insurance and equipment maintenance to individual funds. The revenues and expenses applicable to governmental operations are included in the statement of activities 291 Some expenses reported in the Statement of Activities do not require the use of current financial resources and therefore are not reported as expenditures in governmental fund: Accrued compensated absences (54,386) Net proceeds from debt 92,468 Governmental funds report district pension contributions as expenditures. However, in the Statement of Activities, the cost of pension benefits earned net of employee contributions is reported as pension expense Pension expense in excess of contributions (114,664) Governmental funds do not report inflows and outflows from the certificate of participation. However, in the Statement of Net Activities report these as lease expense net of amortized deferred inflows: Certificate of participation proceeds in excess of deferred inflows 348,030 Change in net position $ 1,340,337 27 See accompanying notes to financial statements ASSETS Current assets Cash and cash equivalents Accounts receivable Grant receivable Interest receivable Prepaid expense Noncurrent assets Restricted assets Bond reserves Utility deposits Investments Capital assets Accumulated depreciation Lease and subscription assets Accumulated amortization Due from other funds DEFERRED OUTFLOWS Pension LIABILITIES Current Liabilities Accounts payable Payroll payable Health Claims incurred but not reported Unearned contributions Accrued compensated absences Current portion of bonds payable Accrued bond interest Current portion of long-term debt Accrued note interest Deposits Noncurrent Liabilities Revenue bonds payable, net unamortized premium Notes payable Compensated absences Lease and subscription liabilities Net pension liabilities DEFERRED INFLOWS Pension Certificate of participation NET POSITION Net investment in capital assets Restricted for bond service Unrestricted CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2025 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2024 $ 27,221,327 $30,077,336 $4,873,290 $1,208,792 63,380,745 $ 58,837,319 $ 1,481 $ 2,386 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 444 $ 63,381,189 28 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust Total 2024 Funds 2025 Funds 2024 $ 6,582,268 $15,199,981 $1,879,309 $1,485,852 $25,147,410 $ 22,994,029 $ - $ - 421,398 439,527 203,880 15,790 1,080,595 1,015,354 4,601 5,525 15,980 - - - 15,980 6,350 - - - 3,077 - 3,077 3,210 58,678 58,678 13,632 7,019,646 15,642,585 2,083,189 1,560,320 26,305,740 24,032,575 4,601 5,525 167,600 - - - 167,600 168,800 - - 694,677 3,980 820 699,477 588,617 3,005,850 - 485,665 3,491,515 3,450,980 - - 35,234,890 28,179,946 7,864,789 71,279,625 69,480,522 261,085 261,085 (7,203,431) (6,943,709) (3,377,346) (17,524,486) (16,035,084) (259,604) (258,699) 8,367 8,367 8,160 24,894 41,847 (5,631) (5,631) (5,515) (16,777) (23,366) 3,077,366 3,077,366 3,209,566 31,902,322 24,320,319 4,976,573 61,199,214 60,881,882 1,481 2,386 38,921,968 39,962,904 7,059,762 1,560,320 87,504,954 84,914,457 6,082 7,911 92,623 82,331 92,623 - 267,577 353,168 - - 85,381 318,924 90,114 88,716 583,135 623,508 4,601 5,525 23,534 20,599 23,943 - 68,076 62,170 - - - - - 187,136 187,136 129,738 - - - 75,676 75,676 144,650 18,262 16,692 8,618 - 43,572 38,416 167,355 - - 167,355 162,355 633 - - 633 1,150 383,286 852,545 106,540 1,342,371 1,515,538 57,007 - 560 57,567 62,267 694,677 3,980 820 699,477 588,617 1,430,135 1,212,740 230,595 351,528 3,224,998 3,328,409 4,601 5,525 - - - - - 167,356 - - 8,115,629 6,564,465 92,253 14,772,347 16,136,129 73,046 66,770 34,470 174,286 153,663 2,126 2,126 2,030 6,282 12,182 357,038 317,367 357,038 1,031,443 1,584,922 8,547,839 6,950,728 485,791 15,984,358 18,054,252 9,977,974 8,163,468 716,386 351,528 19,209,356 21,382,661 4,601 5,525 154,567 137,393 154,567 - 446,527 - - - 1,660,723 1,667,038 1,408,142 4,735,903 5,047,645 - - 19,365,189 21,236,237 4,288,650 44,890,076 43,941,631 1,481 2,386 167,600 - - 167,600 168,800 - - 7,688,538 8,841,099 584,640 1,208,792 18,323,069 14,726,888 $ 27,221,327 $30,077,336 $4,873,290 $1,208,792 63,380,745 $ 58,837,319 $ 1,481 $ 2,386 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 444 $ 63,381,189 28 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2024 OPERATING EXPENSES Administration Salaries and wages Personnel benefits Repairs and maintenance Equipment and supplies Travel, meetings, and training Telephone and communications Utilities Treatment - Pocatello Certificate of participation payment Other purchased services Professional services Bad debt Depreciation Lease and subscription amortization OPERATING INCOME NONOPERATING REVENUE (EXPENSE) Interest income Investment income Note interest income Bond interest expense Note interest expense Lease and subscription interest expense Grant revenue Miscellaneous revenue Gain (Loss) from asset disposal - - - 69,293 69,293 Internal Internal 1,445,717 875,156 Health Plan 878,236 - Service Service (36,445) 4,543,426 Water Sewer Sanitation Trust Total 2024 Funds 2025 Funds 2024 OPERATING REVENUES - - 228,066 132,254 879,306 - Service revenue $ 3,914,608 $ 6,128,375 $ 2,493,366 $ 2,586,731 $15,123,080 $ 13,164,837 $ 51,099 $ 58,952 Revenue used as security 733,706 830,574 39,585 37,696 8,815 9,409 for revenue bond: 22,673 67,147 80 60 10,745 Charges for services 167,355 167,355 329,711 - - 269,563 4,081,963 6,128,375 2,493,366 2,586,731 15,290,435 13,494,548 51,099 58,952 OPERATING EXPENSES Administration Salaries and wages Personnel benefits Repairs and maintenance Equipment and supplies Travel, meetings, and training Telephone and communications Utilities Treatment - Pocatello Certificate of participation payment Other purchased services Professional services Bad debt Depreciation Lease and subscription amortization OPERATING INCOME NONOPERATING REVENUE (EXPENSE) Interest income Investment income Note interest income Bond interest expense Note interest expense Lease and subscription interest expense Grant revenue Miscellaneous revenue Gain (Loss) from asset disposal - - - 69,293 69,293 62,972 1,495,835 1,445,717 875,156 764,149 878,236 - 2,517,541 2,345,189 (36,445) 4,543,426 3,846,389 (905) (1,265) 305,623 300,205 371,257 2,008,045 2,985,130 2,326,097 - - 228,066 132,254 879,306 - 1,239,626 1,114,971 5,362 14,491 388,300 107,991 237,415 733,706 830,574 39,585 37,696 8,815 9,409 4,449 22,673 67,147 80 60 10,745 6,080 6,456 23,281 22,962 - - 269,563 46,286 15,015 330,864 316,423 6,073 6,704 - 1,726,919 - 1,726,919 1,630,031 - - 40,549 40,702 34,381 115,632 114,406 78,210 - - 476,524 554,734 449,472 48,878 37,696 44,060 69,314 199,948 148,382 4,612 - - - 4,612 27,771 - - 991,860 815,404 297,543 2,104,807 2,126,788 904 1,266 3,469 3,469 3,429 10,367 19,911 3,253,846 3,990,564 2,771,547 2,623,176 12,639,133 11,603,096 52,004 60,217 828,117 2,137,811 (278,181) (36,445) 2,651,302 1,891,452 (905) (1,265) 143,083 284,421 42,909 470,413 530,745 - 112,135 - 18,035 130,170 217,476 - 3,077 - 3,077 3,210 (5,928) - (5,928) (11,761) (249,439) - (8,747) (258,186) (267,578) (89) (89) (85) (263) (156) 18,176 - - 18,176 15,598 5,821 8,915 7,694 22,430 21,686 8,200 8,200 16,400 31,959 304,524 59,806 396,289 509,220 CAPITAL CONTRIBUTIONS Developer contributions 1,054,353 441,482 1,495,835 1,445,717 1,054,353 441,482 1,495,835 1,445,717 CHANGES IN NET POSITION 1,914,429 2,883,817 (218,375) (36,445) 4,543,426 3,846,389 (905) (1,265) BEGINNING NET POSITION 25,306,898 27,193,519 5,091,665 1,245,237 58,837,319 54,990,930 2,386 3,651 ENDING NET POSITION $ 27,221,327 $30,077,336 $ 4,873,290 $1,208,792 $63,380,745 $ 58,837,319 $ 1,481 $ 2,386 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (272) Change in net position of business -type activities $ 4,543,154 29 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2024 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from revenues Cash paid to suppliers Cash paid to employees Net cash provided by operating activities CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Net change in interfund loans Proceeds from grants Proceeds from deposits (payments) Net cash (used) in noncapital financing activities CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on debt Interest paid Proceeds from asset disposals Proceeds from certificate of participation Principal and interest paid on lease Purchase of capital assets Net cash provided (used) in capital and related financing activities CASH FLOW FROM INVESTING ACTIVITIES Cash paid from investments Interest proceeds Net cash provided by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEGINNING CASH AND CASH EQUIVALENTS ENDING CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents Cash and cash equivalents - Restricted - 132,200 5,065 132,200 131,936 8,546 Internal Internal 8,546 17,977 110,550 Health Plan 120 110,860 Service Service Water Sewer Sanitation Trust Total 2024 Funds 2025 Funds 2024 $ 4,022,711 $ 6,116,506 $2,504,019 $ 2,577,346 $ 15,220,582 $13,128,123 $ 52,023 $59,576 (1,239,050) (2,076,536) (1,192,912) (2,613,218) (7,121,716) (5,788,998) (52,023) (59,576) (1,208,340) (1,049,968) (1,225,994) - (3,484,302) (2,965,215) - (150,175) 1,575,321 2,990,002 85,113 (35,872) 4,614,564 4,373,910 (2,281,638) - 132,200 5,065 132,200 131,936 8,546 - - 8,546 17,977 110,550 190 120 110,860 67,597 119,096 132,390 120 251,606 217,510 (528,539) (1,060,561) (102,850) (1,691,950) (1,115,458) (272,678) - (9,008) (281,686) (42,557) 8,200 8,200 $1,880,129 16,400 $ 21,572,795 $ $ (109,319) (109,733) (92,691) (311,743) (311,742) (2,070) (2,070) (2,026) (6,166) (21,735) (768,664) - (150,175) (918,839) (790,146) (1,673,070) (1,164,164) (356,750) (3,193,984) (2,281,638) 84,570 - 5,065 89,635 17,110 148,904 296,713 50,603 496,220 367,706 233,474 296,713 55,668 585,855 384,816 254,821 2,254,941 (215,849) (35,872) 2,258,041 2,694,598 7,194,724 12,949,020 2,095,978 1,521,724 23,761,446 18,878,197 $ 7,449,545 $15,203,961 $1,880,129 $ 1,485,852 $ 26,019,487 $ 21,572,795 $ $ $ 6,582,268 $15,199,981 $1,879,309 $ 1,485,852 $ 25,147,410 $20,864,513 $ $ 867,277 3,980 820 - 872,077 708,282 $ 7,449,545 $15,203,961 $1,880,129 $ 1,485,852 $ 26,019,487 $ 21,572,795 $ $ 30 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2024 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 91 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust Total 2024 Funds 2025 Funds 2024 OPERATING INCOME $ 828,117 $ 2,137,811 $ (278,181) $ (36,445) $ 2,651,302 $ 2,073,173 $ (905) $ (1,265) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation and amortization 995,329 818,873 300,972 2,115,174 2,078,804 905 1,265 Pension expense (37,223) 7,464 8,397 (21,362) 157,094 - - Bad debt expense 4,612 - - 4,612 6,290 - (Increase) decrease in assets Accounts receivable (59,252) (11,869) 10,653 (9,385) (69,853) (17,302) (924) Prepaid expense 13,632 - - (58,678) (45,046) (23,824) - Increase (decrease) in liabilities Accounts payable (179,556) 30,801 28,170 68,636 (51,949) 79,165 924 Payroll payable 1,554 1,380 2,972 - 5,906 7,055 - Accrued compensated absences 8,108 5,542 12,130 - 25,780 13,455 - - Total adjustments 747,204 852,191 363,294 573 1,963,262 $2,300,737 905 1,265 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 1,575,321 $ 2,990,002 $ 85,113 $(35,872) $ 4,614,564 $ 4,373,910 $ - $ - 91 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 16) NOTE 1 - Summary of Significant Accounting Policies The City's financial statements comply with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements within the codification. The government -wide financial statements, including the enterprise funds and the fund financial statements for the proprietary funds, are also under GASB codification. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. Applicable GASB statements have been implemented through GASB 96 with the exception of those standards not required to be implemented. A. Reporting Entity The City's financial reporting entity comprises the following: Primary Government In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, `The Financial Reporting Entity". Currently, the City reports one component unit; the Chubbuck Development Authority. Discretely Presented Component Units Chubbuck Development Authority (CDA) One component unit reported in the combined financial statements represents the financial balances and transactions of the Chubbuck Development Authority (CDA). CDA is a legally separate entity incorporated under the State of Idaho's urban renewal laws. CDA works with the City to develop blighted areas within the City using tax increment financing for development. The Board of Commissioners of the Authority consists of 7-9 members, which are appointed by the Mayor. Complete financial statements of the Authority can be obtained from the City Clerk, City of Chubbuck, 290 E. Linden Ave, Chubbuck, Idaho 83202. B. Basis of Presentation Government -wide Statements The Statement of Net Position and Statement of Activities displays information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business -type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. Funds are organized into three major categories; governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type. b. Total assets, liabilities, revenues, or expenditures of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Governmental Funds General Fund The General Fund is the general operating fund of the City and is always classified as a major fund. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Highway, Streets, and Roads Fund The Highway, Streets, and Roads Fund accounts for revenue and expenditures used for the construction and maintenance of highways, streets, and roads. It is a major fund. Page 32 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (continued) Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Proprietary Funds Enterprise Funds Enterprise funds are used to account for business -like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. The reporting entity includes the water, sewer, sanitation, and health plan trust. Proprietary funds distinguish "operating" revenues from "non-operating" revenues. Operating revenue is revenue generated from the City's primary business activities. The operating revenues are produced through charges for services. Nonoperating revenue is the portion of the City's revenue that is derived from activities not related to its core operations. The City reports the following major proprietary funds: The Water Fund accounts for the operations involved in collecting and distributing culinary water to the citizens of Chubbuck. The Sewer Fund accounts for operations involved with the collection and treatment of sewer water. The Sanitation Fund accounts for the operations for solid waste removal and disposal. The Health Plan Trust Fund provides optional health care benefits to City employees, dependents, and employees eligible through Cobra. All medical and prescription drug coverages are paid by the City through contributions to the Trust. A third party administers the benefits and receives a fee for processing claims. Internal Service Funds Central Garage Each fund is allocated the costs of operations based on equipment maintenance and repairs to their departments. C. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -like activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used: a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position. Page 33 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 16) NOTE 1 - Summary of Sianificant Accountina Policies (Continued C. Measurement Focus and Basis of Accounting (continued) Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. The effect of interfund activity has been eliminated from the government -wide financial statements. D. Budgets and Encumbrances Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general and highway, streets and roads. All annual appropriations lapse at fiscal year end. Each month the City prepares a financial report that reflects the actual and budgeted financial data. A strict purchase order system is used in controlling and maintaining expenditures within budget categories. This data is reviewed by the City Council. The City does not use the encumbrance method of accounting. E. Cash and Cash Equivalents For the purpose of the Statement of Net Position, "cash and cash equivalents" includes all demand, savings accounts, certificates of deposits, and state investing pools of the City. For the purpose of the proprietary fund Statement of Cash Flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. F. Fair Value Measurements of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the City. Unobservable inputs reflect the City's assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that City has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these assets and liabilities does not require a significant degree of judgement. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable, that is, inputs that reflect the City's own assumptions. G. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, right of way and similar items), are assets with an initial, individual cost of more than $35,000 and an estimated useful life in excess of one year. The accounting treatment for property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. Page 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued) G. Capital Assets (continued) Government -wide Statements In the government -wide financial statements, the assets are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated assets which are recorded at their estimated fair value at the date of donation. Estimated historical cost was used to value the majority of the assets acquired prior to September 30, 2003. Governmental fund infrastructure assets were not capitalized prior to October 1, 2003. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Buildings 20-30 years Other structures 15-20 years Equipment 7-10 years Vehicles 5-7 years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government -wide statements. H. Restricted Assets Restricted assets include cash and investments of the proprietary fund that are legally restricted as to their use. The primary restricted assets are related to utility deposits and bond reserve requirements. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Lessor/Lessee Leases The financial statements include the adoption of GASB Statement No. 87 Leases, and GASB Statement No. 96 Subscriptions. The primary objective of these statements are to enhance the relevance and consistencies of information about the City's leasing and subscribing activities. These statements establish a model for lease and subscription accounting based on the principle that these activities are financing the right to use an underlying asset. Under these Statements, a lessee or subscriber is required to recognize a lease or subscription liability and an intangible right -to -use lease or subscription asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. J. Long-term Debt The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the government -wide statements. The long-term debt consists primarily of notes payable, capital leases, capital subscriptions, and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. Debt proceeds are reported as other financing sources. Payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -wide statements. K. Comparative data/reclassifications Comparative total data for the prior year has been presented in the fund financial statements in order to provide an understanding of the changes in assets and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Page 35 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued) L. Compensated Absences The City's policies regarding vacation time permit employees to accumulate earned but unused vacation leave. The liability for these unpaid compensated absences is recorded as long-term debt in the government -wide statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements, governmental funds report only the compensated absence liability payable from expendable available financial resources, while the proprietary funds report the liability as it is incurred. M. Equity Classifications Government -wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages notes, or other borrowings that are attributable to the acquisition, construction, or improvement of these assets. b. Restricted - Consists of assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted - All other assets that do not meet the definition of "restricted" or "net investment in capital assets." Fund Statements In the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable items- This category includes a portion of net resources that cannot be spent because of their form or because they must be maintained intact. This includes inventories and prepaid items. Restricted items- This category includes resources where limitations are imposed by external entities, such as grantors and creditors, or to comply with laws and regulations of governments. Committed items -This category includes amounts that can only be used for the specific purposes determined by a formal action of the City's highest level of decision-making authority for the City. Commitments may be changed or lifted only by the Council taking the same formal action that imposed the constraint originally. Assigned items -Assigned items represent the City's intent to use certain resources for specific purposes. The City Council may establish the intended use of these funds for a designated purpose. Unassigned items- Represents the remainder of the City's equity in governmental fund -type balances in excess of the aforementioned classifications. It is the City's policy to use unrestricted fund balances in the following order: (1) Committed, (2) Assigned, (3) Unassigned. N. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the City to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. O. Pensions For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Page 36 NOTE 2 - I�C611i=fm NOTE 4 - NOTE 5 - NOTE 6 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 16) Legal Compliance - Budgets Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The budget is prepared by fund at the function level and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. The City Council holds public hearings and may add to, subtract from or change appropriations, but may not change the form of the budget. Any changes in the budget must be within the revenues and reserves estimated as available to the City or the revenue estimates must be changed by an affirmative vote of a majority of the City Council. After public hearings and before the end of the fiscal year, the City Council formally adopts the budget. Budgetary control is exercised by function at the fund level. The City Manager is authorized to transfer budgeted appropriations within individual funds, but cannot alter the appropriations on a fund level without City Council approval. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, several supplementary appropriations may be necessary. Restricted Assets and Payable from Restricted Assets Assets have been set aside for special items and are restricted for that purpose. Restricted resources are used only after the unrestricted resources are depleted. To date cash has been restricted for the following items: Proprietary Bond reserves Utility deposits Total $ 167,600 699,477 $ 867,077 Bond reserves are amounts the City is legally required to reserve for the repayment of outstanding bonds. Water deposits are collected from individuals who receive utility services from the City. Money on deposit may be used to pay past due balances or is returned when the payer stops utility service. Restricted utility deposits totaled $699,477 at year-end. Property Tax Bannock County has the responsibility of assessing and collecting all property taxes. Taxes levied for the year are payable in two installments due December 20th of the current year and June 20th of the following year. The County remits property taxes collected to the City monthly. Property taxes are recognized as revenue when received for monthly reporting purposes. At year end, an accrual is made to recognize property taxes receivable at year end. At year end, $142,974 in outstanding property taxes were expected to be collected and remitted by the County." Tax Abatements The City has no tax abatement agreements as of September 30, 2025. Cash, Cash Equivalents and Investments Primary Government: Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Restricted Unrestricted Page 37 Balance $ 867,077 38,526,351 $ 39,393,428 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 16) NOTE 6 - Cash, Cash Equivalents and Investments (Continued) Deposits Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end, the carrying amount of the City's deposits (cash and certificates of deposit) was $39,393,428 and the bank balance was $34,873,971. The deposits were covered by collateralized accounts or federal depository insurance of $250,000 per bank. The City uses various commercial banks to limit their exposure to custodial credit risk, however, some of the City's deposits including the State of Idaho, Local Government Investment Pool (LGIP) at year-end were not insured nor collateralized in the amount of $3,005,410. The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Investments As of September 30, 2025, the City had the following investments: Maturities More Than Fair Value No Maturity 1-10 Years 10 Years Moody/ S&P Money Funds $ 27,395 $ 27,395 $ - $ N/A U.S. Government Bonds 3,491,515 - 3,491,515 Aa1 /AA+ Total Investments $ 3,518,910 $ 27,395 $ 3,491,515 $ The above investments are measured at fair market value based on the exit price for these investments at the fiscal year end date. These are all considered to be measured on a Level 1 on the fair market value hierarchy. Component Unit - Chubbuck Development Authority (CDA): Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted $ 651,702 Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end the carrying amount and bank balance of CDA's deposits (cash and certificates of deposit) was $651,702. At year-end, all the Authority's deposits were held in the LGIP. Deposits in the LGIP are not insured or guaranteed by the Federal Deposit Insurance Corporation, the State of Idaho or any other government agency. CDA's deposits in the bank at year-end were fully insured or collateralized. The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Investments - The CDA has no investments NOTE 7 - Receivables and Deferred Inflow of Resources -Leases All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging delinquent balance report. Historically 100% of property taxes have been collected, therefore, there is no allowance for uncollectible property tax receivables. Receivables as of year-end for the City's governmental -type funds are as follows: Highway, Streets, General and Roads Total Accounts Receivables 4,128 4,128 Allowance for Doubtful Accounts (1,032) (1,032) 3,096 3,096 Page 38 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 16) NOTE 7 - Receivables and Deferred Inflow of Resources -Leases (Continued) Receivables as of year-end for the City's business -type funds are as follows: Water Sewer Sanitation Health Plan Trust Total Accounts Receivables $ 439,491 $ 453,121 $ 208,041 15,790 $ 1,116,443 Allowance for Doubtful Accounts (18,093) (13,594) (4,161) (35,848) $ 421,398 $ 439,527 $ 203,880 15,790 $ 1,080,595 For the year ended September 30, 2025, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below. The City, as a lessor, had entered into eight lease agreements involving infrastructure, land and structures, and buildings. As of September 30, 2025, the total combined value of the lease receivable was $83,014, the combined value of the deferred inflow of resources was $79,390, and the lease revenue balance was $109,179. Principal and Interest Expected to Maturity Fiscal Year 2026 2027 2028 2029 2030 2031-2033 Governmental Activities Lease Receivable Governmental Activities Deferred Inflow of Resources -Leases NOTE 8 - Concentration of Credit Risk Governmental Activities Principal Interest Payments Payments Total Payments $ 68,783 $ 2,220 $ 71,003 28,361 1,597 29,958 28,747 1,211 29,958 29,137 821 29,958 29,533 425 29,958 14,296 200 14,496 $ 198,857 $ 6,474 $ 205,331 Beginning Ending Balance Additions Reductions Balance $ 114,546 $ 78,375 $ 109,907 $ 83,014 114,546 $ 78,375 $ 109,907 $ 83,014 Beginning Ending Balance Additions Reductions Balance $ 110,194 $ 78,375 $ 109,179 $ 79,390 110,194 78,375 109,179 79,390 Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of a deposit. The City manages its exposure to declines in fair value by limiting the average maturity of its deposits to one year or less, or redeemable on demand with no penalty. Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. The City's investments in U.S. government bonds were rated Aaa and AA+ by Moody's and Standard & Poor's Investor Services, respectively. Idaho law requires the City to obtain the safest investment rated by a nationally recognized standard rating service. Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Exclusive of the State of Idaho LGIP, the City's deposits in any one issuer does not represent a concentration of total credit risk. The funds in the State of Idaho LGIP are in a variety of investments which are required to have an A quality credit rating or better. The City is subject to credit risk on deposits in banks that exceed the FDIC maximum insured balance amount. Additionally, the City grants credit to customers in the City for utility service. This extension of credit potentially subjects the City to credit risk. Page 39 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 16) NOTE 9 - Changes in Assets A summary of general capital assets at year end is as follows: Nondepreciable assets Land Work in Process Infrastructures Buildings and Improvements Vehicles and Equipment Accumulated Depreciation Beginning Ending Balance Additions Deletions Balance $ 3,248,479 $ $ - $ 3,248,479 9,172,949 9,172,949 - 25,815,857 8,994,999 - 34,810,856 17,377,350 - - 17,377,350 5,456,530 2,054,826 239,939 7,271,417 61,071,165 11,049,825 9,412,888 62,708,102 11,725,904 1,661,929 240,452 13,147,381 $ 49,345,261 $ 9,387,896 $ 9,172,436 $ 49,560,721 A summary of proprietary type capital assets at year end is as follows: Nondepreciable assets Land Water Rights Work in Process Buildings and Improvements Vehicles and Equipment Accumulated Depreciation A summary of general lease assets at year end is as follows: Vehicles and Equipment Accumulated Amortization Beginning Ending Balance Additions Deletions Balance $ 2,159,817 $ $ $ 2,159,817 2,421,167 Additions Deletions 2,421,167 1,204,795 $ 35,401 1,171,005 33,790 54,969,516 3,179,115 545,562 57,603,069 8,986,312 406,397 69,842 9,322,867 69,741,607 3,585,512 1,786,409 71,540,710 16,293,784 2,105,710 615,404 17,784,090 $ 53,447,823 $ 1,479,802 $ 1,171,005 $ 53,756,620 Beginning Ending Balance Additions Deletions Balance $ 308,137 $ 35,401 $ 24,920 $ 318,618 308,137 35,401 24,920 318,618 96,583 68,094 16,196 $ 148,481 $ 211,554 $ (32,693) $ 8,724 $ 170,137 A summary of proprietary type lease assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Equipment $ 18,396 $ $ $ 18,396 18,396 18,396 Accumulated Amortization 10,580 3,780 $ 14,360 $ 7,816 $ (3,780) $ $ 4,036 A summary of general subscription assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Software $ 22,817 $ $ 5,651 $ 17,166 22,817 5,651 17,166 Accumulated Amortization 6,901 7,196 5,651 $ 8,446 $ 15,916 $ (7,196) $ - $ 8,720 A summary of proprietary type subscription assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Software $ 23,451 $ $ 16,954 $ 6,497 23,451 16,954 6,497 Accumulated Amortization 12,786 6,587 16,954 $ 2,419 $ 10,665 $ (6,587) $ - $ 4,078 Page 40 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 16) NOTE 10 - Lease and Subscription Payable Lease The City, as a lessee, had entered into eleven lease agreements involving vehicles and equipment. As of 9/30/25, the total combined value of the lease liability was $142,705. The total combined value of the lease assets, net of amortization, was $174,172. Principal and Interest Expected to Maturity Business -Type Activities Balance Additions Reductions Balance Subscription Liability $ 4,257 $ $ 2,088 $ 2,169 $ 4,257 $ $ 2,088 $ 2,169 Page 41 Governmental Activities Principal Interest Total Fiscal Year Payments Payments Payments 2026 $ 59,482 $ 3,553 $ 63,035 2027 36,137 2,081 38,218 2028 21,248 1,151 22,399 2029 21,723 583 22,306 2030 - - - $ 138,590 $ 7,368 $ 145,958 Business -Type Activities Principal Interest Total Fiscal Year Payments Payments Payments 2026 $ 3,079 $ 55 $ 3,134 2027 772 23 795 2028 263 2 265 2029 - 2030 - - - $ 4,114 $ 80 $ 4,194 Beginning Ending Governmental Activities Balance Additions Reductions Balance Lease Liability $ 171,726 $ 88,201 $ 121,337 $ 138,590 171,726 88,201 121,337 138,590 Beginning Ending Business -Type Activities Balance Additions Reductions Balance Lease Liability $ 7,927 $ - $ 3,813 $ 4,114 $ 7,927 $ - $ 3,813 $ 4,114 Subscription The City had entered into three subscription -based information technology agreements involving the use of software. As of 9/30/25, the combined value of the subscription liability was $2,890. The total combined value of the subscription assets, net of amortization, was $12,799. Principal and Interest Expected to Maturity Governmental Activities Principal Interest Total Fiscal Year Payments Payments Payments 2026 $ 723 $ 27 $ 750 $ 723 $ 27 $ 750 Business -Type Activities Principal Interest Total Fiscal Year Payments Payments Payments 2026 $ 2,168 $ 82 $ 2,250 $ 2,168 $ 82 $ 2,250 Governmental Activities Balance Additions Reductions Balance Subscription Liability $ 1,419 $ - $ 696 $ 723 $ 1,419 $ - $ 696 $ 723 Business -Type Activities Balance Additions Reductions Balance Subscription Liability $ 4,257 $ $ 2,088 $ 2,169 $ 4,257 $ $ 2,088 $ 2,169 Page 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 16) NOTE 11 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Governmental Business -type $ 121,748 $ 43,572 486,990 174,286 $ 608,738 $ 217,858 The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: On April 14, 2022, the City issued a debt obligation to purchase an fire aerial ladder truck. Payments are due April 14, beginning April 14, 2023. The debt was issued at 3.03%. The note was issued for $1,000,000 with a annual payment of $117,410 until the maturity date of April 14, 2032. Current portion Noncurrent portion Business -type activities: $ 95,271 635,401 $ 730,672 In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with an interest rate of 3.25% and semi-annual payments of $12,332 for 20 years. Current portion Noncurrent portion 12,012 IZ,U"IZ The City was authorized to borrowed $17,569,518 from the Department of Environmental Quality (DEQ) under four (4) separate loans. The four (4) loans have zero percent interest rate and are required to be paid in biannual installments over 20 years. Outstanding DEQ line of credit at zero percent interest, with biannual payment of $5,499 for 20 years, and a maturity date of November 1, 2030. Loan closed April 22, 2010. $ 60,593 DEQ line of credit at zero percent interest, with biannual payment of $204,750 for 20 years, and a maturity date of April 27, 2035. Loan closed March 5, 2015. 3,890,254 DEQ line of credit at zero percent interest, with biannual payment of $212,757 for 20 years, and a maturity date of May 17, 2033. Loan closed April 9, 2013. 3,404,114 DEQ line of credit at zero percent interest, with biannual payment of $3,266 for 20 years, and a maturity date of April 27, 2035. Loan closed January 31, 2011. 62,049 $ 7,417,010 Less current portion 852,545 Noncurrent portion $ 6,564,465 With an original loan date of August 23, 2023, the City received a loan award from the Department of Environmental Quality (DEQ) for $9,222,747 at 2.75% interest. Principal and interest shall be paid in equal semi-annual installments of $301,377 over 20 years. The loan is being used to finance the designing and constructing of a well in Copperfield Landing, additional water distribution lines throughout the City, and the Hiline booster station. Current portion Noncurrent portion Page 42 $ 371,274 8,115,629 $ 8,486,903 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 16) NOTE 11 - Long-term Debt and Accrued Compensation (Continued) The Water Revenue Bonds, Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of $110,330. The bond carries interest rates between 2 and 4.75% and a maturity date of September 1, 2026. Bonds Payable: Net Premium Principal Total Water Revenue Bond $ 7,355 $ 160,000 $ 167,355 7,355 160,000 167,355 Less current portion 7,355 160,000 167,355 Noncurrent portion $ - $ - $ - Bond premiums, net amortization totaled $7,355. The bond premium and expenses are amortized over fifteen (15) years, the life of the bond. Bond premium amortization of $7,355 for the year. Notes Payable On June 4, 2008, the City issued a note to purchase assets needed in order to collect sanitation for the City. The note was issued at 5.25%. The note was refinanced in 2009 at 3.5%. The note was issued for $1,375,000 with a monthly payment of $9,321 until the maturity date of June 1, 2027. Current portion Noncurrent portion Due To/Due From $ 106,540 92,253 $ 198,793 On October 1, 2017, the Sewer Enterprise Fund loaned the Highway, Streets and Roads Fund, for the purpose of the Siphon Road Interchange, the principal sum of $4,000,000 with an interest rate of .10% and an annual payment of $135,409.98 for 30 years. The first payment being made on October 1, 2018 and then on the first day of October for each year thereafter until October 1, 2047. Fund Highway, Streets, and Roads Sewer Enterprise Fund Annual Debt Service Requirements for bonds and notes payable Year Ending September 30 2026 2027 2028 2029 2030 2031-2035 2036-2040 2041-2043 Page 43 Due from Due to $ 3,077,366 $ - - 3,077,366 $ 3,077,366 $ 3,077,366 Governmental Activities Business -type Activities Principal Interest Principal Interest $ 95,271 $ 24,941 $ 1,481,229 $ 208,611 98,157 22,139 1,303,869 189,887 101,132 19,253 1,226, 565 180,113 104,196 16,279 1,237,831 170,314 107,353 13,214 1,248,849 157,394 110,606 20,314 5,058,683 542,060 113,957 - 2,477,246 427,651 - - 2,240,446 117,157 $ 730,672 $ 116,140 $ 16,274,718 $ 1,993,187 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 16) NOTE 11 - Long-term Debt and Accrued Compensation (Continued) Changes in long-term liabilities Long-term liability activity for the year was as follows: Governmental activities Notes payable Compensated absences Business -type activities Bonds payable Notes payable Compensated absences NOTE 12- Conduit Debt Obligations Beginning Ending Due within Balance Additions Reductions Balance one year $ 823,140 $ - $ 92,468 $ 730,672 $ 95,271 540,755 455,389 387,406 608,738 121,748 $ 1,363,895 $ 455,389 $ 479,874 $ 1,339,410 $ 217,019 Long-term portion $ 1,122,391 Beginning Ending Due within Balance Additions Reductions Balance one year $ 315,000 $ $ 155,000 $ 160,000 $ 167,355 17,651,667 1,536,949 16,114,718 1,342,371 192,079 245,323 219,544 217,858 43,572 $ 18,158,746 $ 245,323 $ 1,911,493 $ 16,492,576 $ 1,553,298 Long-term portion $ 14,939,278 Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to lease will expire in the year 2043. There are no voluntary or limited obligations in regards to this Certificate of Participation. NOTE 13- Interfund Transfer Fund General Fund Highway, Streets, and Roads Fund The purpose of the transfer was as follows: Transfers In Transfers Out $ 193,005 $ - - 193,005 $ 193,005 $__193,005 Transfer revenue over expenditures from the Highway, Streets, and Roads Fund to the General Fund. NOTE 14- Stewardship, Compliance and Accountability A. Deficit Fund Balance At September 30, 2024, the City had a deficit fund balance in the amount of $2,310,284 in the Highway, Streets, and Roads fund. The future reduction of an interfund loan will decrease the deficit fund balance. Page 44 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 16) NOTE 15- Pension Plan Plan Description: The City contributes to the Base Plan which is a cost-sharing multiple -employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits: The Base Plan provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are based on members' years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1 % minimum is subject to review by the Idaho Legislature. Member and Employer Contributions: Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by stature at 60% of the employer rate for general employees and 72% for police and firefighters. As of June 30, 2025 it was 7.18% for general employees and 10.36% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.96% general employees and 13.48% for police and firefighters. The City's contributions were $1,008,826 for the year ended September 30, 2025. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30, 2025, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2025, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At June 30, 2025, the City's proportion was .16405389 percent. For the year ended September 30, 2025, the City recognized pension expense (revenue) of $917,803. At September 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ - $ 1,019,805 Changes in assumptions or other inputs 697,603 Net difference between projected and actual earnings on pension plan investments - Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions 747,574 City contributions subsequent to the measurement date 281,568 - $ 1,029,142 $ 1,717,408 $281,568 was reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending, September 30, 2025. Page 45 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 16) NOTE 15 - Pension Plan (Continued) The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2025 the beginning of the measurement period ended June 30, 2024 is 4.6 and 4.6 for the measurement period June 30, 2025. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Year ended September 30, 2025: 2026 2027 2028 2029 2030 Actuarial Assumptions: $ 678,494 (663,019) (606,742) (378,567) Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year's earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2025 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.40% Salary increases 3.15% Salary inflation 3.15% Investment rate of return 6.55%, net of investment expenses Cost -of -living adjustments 1 % Contributinq Members, Service Retirement Members, and Beneficiaries General Employees and All Beneficiaries - Males General Employees and All Beneficiaries - Females Teachers - Males Teachers - Females Fire & Police - Males Fire & Police - Females Disabled Members - Males Disabled Members - Females Pub -2010 General Tables, increased 11 % Pub -2010 General Tables, increased 21 % Pub -2010 Teacher Tables, increased 12% Pub -2010 Teacher Tables, increased 21 % Pub -2010 Safety Tables, increased 21 %. Pub -2010 Safety Tables, increased 26%. 5% of Fire and Police active member deaths are assumed to be duty related. This assumption was adopted July 1, 2021 Pub -2010 Disabled Tables, increased 38% Pub -2010 Disabled Tables, increased 36% An experience study was performed for the period July 1, 2015 through June 30, 2020, which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2025 is based on the results of an actuarial valuation date July 1, 2025. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward- looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System's asset allocation. The assumptions and the System's formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System's assets. Page 46 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 16 OF 16) NOTE 15 - Pension Plan (Continued) Actuarial Assumptions: (continued) The best -estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2025. 1% Decrease Discount Rate Asset Class DB Plans Sick Leave Fixed Income 30.0% 50.0% US/Global Equity 55.0% 39.3% International Equity 15.0% 10.7% Cash 0.0% 0.0% Total Discount Rate: 100.0% 100.0% The discount rate used to measure the total pension liability was 6.55%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans' net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the Employer's proportionate share of the net pension liability to changes in the discount rate: The following presents the Employer's proportionate share of the net pension liability calculated using the discount rate of 6.55 percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (5.55 percent) or 1 -percentage -point higher (7.55 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.55%) (6.55%) (7.55%) Employer's proportionate share of the net pension liability (asset) 9,544,838 3,967,090 589,682 Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the pension plan: At September 30, 2025, the City reported payables to the defined benefit pension plan of $0 for legally required employer contributions and $0 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE 16 - Risk Management The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of substantial losses The City has established a Health Plan Trust for medical benefits provided to City employees and covered dependents. Health benefits were self-funded up to a specific stop loss amount of $50,000, and an aggregate attachment point of $1,398,495 for 2025. Coverage from a private insurance company is maintained for individual claims in excess of $50,000 and for total claims in excess of the aggregate attachment point.. All claims handling procedures are performed by a third -party claims administrator. Incurred but not reported claims have been accrued as a liability based upon a professional actuary estimate. All funds for the City participate in the program and make payments by way of the Health Insurance Fund to the Health Plan Trust based on actuarial estimates of the amounts needed to pay claims and expenses. The claims liability of $187,136 reported as incurred but not reported in the Health Plan Trust is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. NOTE 17 - Subsequent Events Subsequent events were evaluated up to March 25, 2026, the date the financial statements were available to be issued. Page 47 REQUIRED SUPPLEMENTARY INFORMATION 48 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERALFUND YEAR ENDED SEPTEMBER 30, 2025 Resources Property taxes Franchise fees Intergovernmental income Court revenue Parks revenue Licenses, permits and fines Grants Leases and rents Interest income Donations Charges for services Other resources Amounts available for appropriations Charges to appropriations General government Law enforcement Fire control Parks and recreation Building, planning, and development Capital outlays Lease and subscription capital outlays Debt service Equipment note payable principle expense Principle retirement and lease finance Interest expense Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from leases and subscriptions Proceeds from sale of assets Transfer in (out) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE - RESTATED ENDING FUND BALANCE Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) $ 7,483,718 $ 7,483,718 $ 7,476,332 $ (7,386) 321,000 321,000 215,779 (105,221) 2,362,169 2,362,169 2,034,888 (327,281) 22,000 22,000 26,354 4,354 186,500 186,500 139,625 (46,875) 352,000 352,000 362,170 10,170 15,000 15,000 18,295 3,295 121,000 121,000 134,980 13,980 500,000 500,000 498,528 (1,472) 15,100 15,100 11,521 (3,579) - - 1,528 1,528 156,000 156,000 113,196 (42,804) 11,534,487 11,534,487 11,033,196 (501,291) 1,007,965 1,007,965 936,901 71,064 5,381,875 5,381,875 5,201,637 180,238 3,051,047 3,051,047 2,436,691 614,356 1,494,300 1,494,300 1,083,357 410,943 599,300 599,300 545,970 53,330 - - 356,700 (356,700) - - 88,201 (88,201) - - 92,469 (92,469) - - 121,210 (121,210) - - 27,862 (27,862) 11,534,487 11,534,487 10,890,998 643,489 - - 142,198 142,198 - - 88,200 88,200 - - 5,812 5,812 - - 193,005 193,005 - - 287,017 287,017 - - 429,215 429,215 49 - 9,768,450 9,768,450 $10,197,665 $10,197,665 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources Property taxes $ 1,305,000 $ 1,305,000 $ 1,106,282 $ (198,718) Intergovernmental 1,399,079 1,399,079 1,476,339 77,260 Interest Income 34,421 34,421 31,066 (3,355) Other revenues 6,500 6,500 4,492 (2,008) Amounts available for appropriations 2,745,000 2,745,000 2,618,179 (126,821) Charges to appropriations Salaries and personnel benefits 972,500 972,500 851,325 121,175 Building maintenance, supplies, utilities 305,800 305,800 200,147 105,653 Professional services 15,010 15,010 10,220 4,790 Street signing and marking 13,000 13,000 10,226 2,774 Street construction and maintenance 1,253,690 1,253,690 1,205,869 47,821 Equipment maintenance 181,500 181,500 139,453 42,047 Miscellaneous expenses 3,500 3,500 3,967 (467) Debt Service Principal lease and subscription expense - - 823 (823) I nterest expense - - 3,144 (3,144) Total charges to appropriations 2,745,000 2,745,000 2,425,174 319,826 Excess of revenues over (under) expenditures - - 193,005 193,005 Other financing sources (uses) Transfer in (out) - - (193,005) (193,005) - - (193,005) (193,005) NET CHANGE IN FUND BALANCE - - - - BEGINNING FUND BALANCE - - (2,310,284) (2,310,284) ENDING FUND BALANCE $ - - $(2,310,284) $(2,310,284) 50 CITY OF CHUBBUCK, IDAHO Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years` GASB Statement No. 68 requires ten years of information to be presented in this table Data reported is measured as of June 30, 2025 51 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Employer's portion of the net pension liability (asset) 0.0016405389 0.0015691954 0.0015265332 0.001611476 0.001644693 0.001641301 0.001625296 0.001606905 0.001542148 0.00145924 Employer's proportionate share of the net pension liability (asset) $ 3,967,090 $ 5,870,082 $ 6,091,891 $ 6,347,214 $ (129,895) $ 3,811,318 $ 1,855,230 $ 2,370,213 $ 2,423,992 $2,958,104 Employer's covered -employee payroll $ 7,826,424 $ 7,176,519 $ 6,464,312 $ 6,327,525 $ 6,112,874 $ 5,820,108 $ 5,496,835 $ 5,142,733 $ 4,764,551 $4,225,127 Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll 50.69% 81.80% 94.24% 100.31% -2.12°% 65.49°% 33.75°% 46.09°% 50.88°% 70.01% Plan fiduciary net position as a percentage of the total pension liability 90.89°% 85.54% 83.83°% 83.09% 100.36°% 88.22°% 93.79°% 91.69% 90.68% 87.26% GASB Statement No. 68 requires ten years of information to be presented in this table Data reported is measured as of June 30, 2025 51 GASB Statement No. 68 requires ten years of information to be presented in this table. Data is reported as a measurement of September 30, 2025. 52 CITY OF CHUBBUCK, IDAHO Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Statutorily required contribution $ 1,043,464 $ 888,498 $ 791,964 $ 765,724 $ 741,954 $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 Contributions in relation to the statutorily required contribution 1,043,464 888,498 791,964 765,724 741,954 709,029 643,275 594,166 545,551 503,931 Contribution (deficiency) excess $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Employer's covered -employee payroll $ 7,608,875 $6,973,077 $6,336,434 $6,254,019 $6,154,443 $6,009,444 $5,597,869 $5,318,395 $4,568,504 $4,536,572 Contributions as a percentage of covered - employee payroll 14% 12.74% 12.50% 12.24% 12.06% 11.80% 11.49% 11.17% 11.94% 11.11% GASB Statement No. 68 requires ten years of information to be presented in this table. Data is reported as a measurement of September 30, 2025. 52 CITY OF CHUBBUCK, IDAHO NOTES TO REQUIRED SUPPLEMENTARY INFORMATION NOTE 1 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Basis of Budgetary Accounting The City is required by State law to adopt annual budgets on all governmental funds that cover a period from October 1, through September 30. All adopted budgets are prepared in accordance with the modified accrual basis of accounting and are adopted on a basis consistent with generally accepted accounting principles. B. Budgetary Information GENERALFUND General government The City had actual revenues below budget in the amount of $501,291. The city had actual expenditures below budget in the amount of $643,489. The City had actual revenue of $11,033,196 above actual expenditures of $10,890,998. This created an excess of $142,198. Highway, Streets, and Roads The City had actual revenues below budget in the amount of $126,821. The City had actual expenditures below budget of $319,826. The City had actual revenue of $2,618,176 above actual expenditures of $2,425,174. This created an excess of $193,005. This was transferred out of Highway, Streets, and Roads to the General Fund. 53 OTHER SUPPLEMENTARY INFORMATION 54 ASSETS Cash LIABILITIES Accounts payable CITY OF CHUBBUCK, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2025 Special Revenue Law Street Juvenile Road Total Fire Control Enforcement Park Guarantee Referral Court Projects Parks Nonmajor Impact Fees Impact Fees Impact Fees Fund Fund Fund Fund Fund Funds $ 379,065 $ 408,348 $ 1,266,446 $ 87,441 $ 1,319 $ 280,319 $ 181,000 $ 402,392 $3,006,330 - - 40,500 - - - - - 40,500 40,500 - - - 40,500 FUND BALANCES Committed, reported in: Special revenue fund 379,065 408,348 1,225,946 87,441 1,319 280,319 181,000 402,392 2,965,830 379,065 408,348 1,225,946 87,441 1,319 280,319 181,000 402,392 2,965,830 $ 379,065 $ 408,348 $ 1,266,446 $ 87,441 $ 1,319 $ 280,319 $ 181,000 $ 402,392 $3,006,330 55 REVENUES Interest income Impact fees Grant revenue Other revenues EXPENDITURES Other purchased services Capital Outlays EXCESS OF REVENUES OVER (UNDER) EXPENDITURES CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Special Revenue Law Street Juvenile Road Fire Control Enforcement Park Guarantee Referral Court Projects Parks Impact Fees Impact Fees Impact Fees Fund Fund Fund Fund Fund Total Nonmajor Funds $ 9,259 $ 8,450 $ 12,460 $ 3,151 $ 27 $ 5,306 $ 3,735 $ 8,304 $ 50,692 118,661 140,869 206,667 - - - - - 466,197 - - - - 1,883 - - 1,883 - - - 128,979 - 28,064 - - 157,043 127,920 149,319 219,127 132,130 27 35,253 3,735 8,304 675,815 - - 40,500 154,407 2,171 - - 197,078 65,540 - - - - - - 65,540 65,540 - 40,500 154,407 2,171 - - 262,618 62,380 149,319 178,627 (22,277) 27 33,082 3,735 8,304 413,197 NET CHANGE IN FUND BALANCES 62,380 149,319 178,627 (22,277) 27 33,082 3,735 8,304 413,197 BEGINNING FUND BALANCE 316,685 259,029 1,047,319 109,718 1,292 247,237 177,265 394,088 2,552,633 ENDING FUND BALANCE $ 379,065 $ 408,348 $ 1,225,946 $ 87,441 $ 1,319 $ 280,319 $ 181,000 $ 402,392 $2,965,830 56 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2025 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2024 LIABILITIES Current Liabilities Accounts payable 4,601 4,601 5,525 4,601 4,601 5,525 Noncurrent Liabilities - - - 4,601 4,601 5,525 NET POSITION Net investment in capital assets 1,481 1,481 2,386 Unrestricted - - - $ 1,481 $ 1,481 $ 2,386 57 Central Garage 2025 2024 Fund Totals Totals ASSETS Current assets Accounts receivable $ 4,601 $ 4,601 $ 5,525 4,601 4,601 5,525 Noncurrent assets Restricted assets Capital assets 261,085 261,085 261,085 Accumulated depreciation (259,604) (259,604) (258,699) 1,481 1,481 2,386 LIABILITIES Current Liabilities Accounts payable 4,601 4,601 5,525 4,601 4,601 5,525 Noncurrent Liabilities - - - 4,601 4,601 5,525 NET POSITION Net investment in capital assets 1,481 1,481 2,386 Unrestricted - - - $ 1,481 $ 1,481 $ 2,386 57 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2024 OPERATING REVENUES Service revenue OPERATING EXPENSES Repairs and maintenance Equipment and supplies Travel, meetings, and training Fuels and lubricants Utilities Depreciation OPERATING INCOME (LOSS) CHANGES IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Central Garage 2025 2024 Fund Totals Totals $ 51,099 $ 51,099 $ 58,952 51,099 51,099 58,952 5,362 5,362 14,491 37,298 37,298 36,296 80 80 60 2,287 2,287 1,400 6,073 6,073 6,704 904 904 1,266 52,004 52,004 60,217 (905) (905) (1,265) (905) (905) (1,265) 2,386 2,386 3,651 $ 1,481 $ 1,481 $ 2,386 58 CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2025 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2024 ENDING CASH AND CASH EQUIVALENTS $ - $ - CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents $ - $ - Cash and cash equivalents - Restricted - - RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Central Garage Fund 2025 2024 OPERATING INCOME (LOSS) Central RECONCILIATION OF OPERATING INCOME TO Garage NET CASH PROVIDED BY OPERATING ACTIVITIES Fund 2025 2024 CASH FLOWS FROM OPERATING ACTIVITIES 905 1,265 Cash received from revenues $ 52,023 $ 59,576 Cash paid to suppliers (52,023) (59,576) Cash paid to employees - Net cash provided by operating activities - - CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES 905 1,265 Net cash (used) in noncapital financing activities - - CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Net cash provided (used) in capital and related financing activities - - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS - - BEGINNING CASH AND CASH EQUIVALENTS - - ENDING CASH AND CASH EQUIVALENTS $ - $ - CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents $ - $ - Cash and cash equivalents - Restricted - - RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Central Garage Fund 2025 2024 OPERATING INCOME (LOSS) $ (905) $ (1,265) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation 905 1,265 (Increase) decrease in assets Accounts receivable (924) - Increase (decrease) in liabilities Accounts payable 924 - Total adjustments 905 1,265 NET CASH PROVIDED BY OPERATING ACTIVITIES $ - $ - 59 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2025 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources Interest income - - $ 50,692 $ 50,692.00 1 m pact fees - - 466,197 466,197 Grant revenue - - 1,883 1,883 Other revenues - - 157,043 157,043 Amounts available for appropriations - - 675,815 675,815 Charges to appropriations Purchased services - - 197,078 (197,078) Capital outlays - - 65,540 (65,540) Total charges to appropriations - - 262,618 (262,618) NET CHANGE IN FUND BALANCE - - 413,197 413,197 BEGINNING FUND BALANCE - - 2,552,633 2,552,633 ENDING FUND BALANCE $ - $ - $ 2,965,830 $ 2,965,830 STATISTICAL SECTION 61 CITY OF CHUBBUCK, IDAHO Statistical Section This part of the City of Chubbuck's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 63-70 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 71-74 These schedulers contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 75-76 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 77-79 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive annual financial reports for the relevant year. 62 City of Chubbuck Net Position By Components Last Ten Fiscal Years (Accrual -Basis Accounting) 63 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Governmental activities: Invested in capital assets, net of related debt $ 11,138,839 $ 16,829,117 $ 24,019,218 $ 26,473,293 $ 28,622,260 $ 32,641,830 $ 42,901,054 $ 48,801,763 $ 49,345,262 $ 49,560,722 Restricted - - - - - - - - - - Unrestricted 6,181,447 3,212,484 547,753 (381,048) (1,695,666) (1,091,874) (4,373,190) (4,124,985) (2,542,255) (1,417,378) Total governmental activities net position $ 17,320,286 $ 20,041,601 $ 24,566,971 $ 26,092,245 $ 26,926,594 $ 31,549,956 $ 38,527,864 $ 44,676,778 $ 46,803,007 $ 48,143,344 Business -type activities Invested in capital assets, net of related debt $ 6,814,991 $ 9,217,942 $ 11,612,979 $ 11,876,681 $ 16,363,939 $ 41,932,621 $ 43,397,173 $ 44,796,281 $ 43,944,017 $ 44,891,557 Restricted 166,731 168,131 164,850 166,100 167,200 168,150 168,950 164,600 168,800 167,600 Unrestricted 21,272,113 22,001,056 21,704,355 25,076,744 24,496,821 5,378,964 7,682,888 10,029,396 14,725,218 18,322,032 Total business -type activities net position $ 28,253,835 $ 31,387,129 $ 33,482,184 $ 37,119,525 $ 41,027,960 $ 47,479,735 $ 51,249,011 $ 54,990,277 $ 58,838,035 $ 63,381,189 Primary government Net investment in capital assets $ 17,953,830 $ 26,047,059 $ 35,632,197 $ 38,349,974 $ 44,986,199 $ 74,574,451 $ 86,298,227 $ 93,598,044 $ 93,289,279 $ 94,452,279 Restricted 166,731 168,131 164,850 166,100 167,200 168,150 168,950 164,600 168,800 167,600 Unrestricted 27,453,560 25,213,540 22,252,108 24,695,696 22,801,155 4,287,090 3,309,698 5,904,411 12,182,963 16,904,654 Total primary government net position $ 45,574,121 $ 51,428,730 $ 58,049,155 $ 63,211,770 $ 67,954,554 $ 79,029,691 $ 89,776,875 $ 99,667,055 $ 105,641,042 $ 111,524,533 63 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 64 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Expenses Governmental activities: General Government $ 896,297 $ 880,217 $ 862,299 $ 836,698 $ 1,537,463 $ 1,348,508 $ 1,153,148 $ 1,309,632 $ 1,575,664 $ 1,261,874 Law enforcement 3,188,507 3,310,717 3,447,266 3,492,557 3,896,661 3,288,219 3,922,815 4,088,400 4,939,468 5,472,394 Fire Control 1,360,246 1,307,106 1,417,951 1,556,572 1,939,749 1,802,233 2,166,198 2,221,199 2,558,581 2,705,745 Building Inspection 199,277 199,336 217,171 246,220 28,004 371,732 - - - - Street 1,487,702 1,426,385 1,293,629 1,210,550 2,042,497 1,764,251 2,121,982 2,490,247 2,860,038 3,096,611 Parks & Recreation 591,638 601,054 653,878 623,328 636,713 802,354 879,101 913,966 1,119,534 1,221,011 Building, Planning, Development 76,884 83,293 90,621 80,049 88,129 91,539 630,746 508,245 635,927 554,155 Other special funds 20,196 150 1,600 17,100 43,181 4,425 234,872 25,500 288,966 197,078 CIAWWC Authority 609,036 609,036 - - - - - - - - Total governmental activities expenses 8,429,783 8,417,294 7,984,416 8,063,075 10,212,397 9,473,261 11,108,862 11,557,189 13,978,178 14,508,868 Business -type activities: Water 1,793,535 1,726,443 2,111,162 2,028,807 2,440,008 2,742,104 3,494,695 3,514,768 3,553,690 3,509,574 Sewer 2,319,135 2,363,009 2,649,245 2,705,251 3,174,444 2,868,693 3,707,757 3,872,609 3,970,973 3,990,653 Sanitation 1,221,934 1,637,470 1,732,030 1,626,740 1,916,682 1,969,580 2,460,458 2,449,593 2,602,186 2,780,379 Health Plan Trust - - - - - 1,346,956 1,646,714 1,595,925 1,754,373 2,623,176 CIAWWC Authority - - 609,036 609,036 609,063 306,104 3,800 3,100 - - Total business -type activities program expenses 5,334,604 5,726,922 7,101,473 6,969,834 8,140,197 9,233,437 11,313,424 11,435,995 11,881,222 12,903,782 Total primary government program expenses 13,764,387 14,144,216 15,085,889 15,032,909 18,352,594 18,706,698 22,422,286 22,993,184 25,859,400 27,412,650 64 65 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2016 2017 2018 2019 2020 2021 2024 2025 2022 2023 Program Revenues Governmental activities: Charges for services: General Government 365,049 414,674 323,186 399,415 342,244 379,116 497,615 598,552 654,341 533,210 Law enforcement 28,918 31,942 29,940 34,221 28,081 27,335 38,982 35,186 41,031 26,354 Fire control 211,041 214,172 237,675 176,925 61,832 5,009 23,963 72 - - Street - - 13,165 17,468 1,292 8,493 - - - - Parks & Recreation 10,589 12,728 149,681 14,758 6,125 16,889 15,833 21,696 86,541 141,153 CIAWWC Authority - 10,980 - - - - - - - - Operatinggrantsandcontributions 43,890 71,329 84,653 179,095 652,897 2,345,551 1,034,960 3,347,408 186,524 31,699 Capital grants and contributions 2,667,268 2,354,109 3,644,635 1,019,354 1,253,033 2,253,204 5,322,013 2,211,701 1,227,343 1,454,636 Total governmental activities program revenues 3,326,755 3,109,934 4,482,935 1,841,236 2,345,504 5,035,597 6,933,366 6,214,615 2,195,780 2,187,052 Business -type activities: Charges for services: Water 2,783,945 2,728,684 2,896,320 2,983,977 2,944,986 3,167,282 3,256,843 3,540,200 3,704,591 4,081,963 Sewer 3,657,738 3,803,714 3,979,134 4,229,957 4,163,168 4,403,367 4,749,986 5,348,899 5,484,618 6,128,375 Sanitation 2,169,627 2,192,420 1,978,239 1,930,472 1,952,196 2,044,405 2,223,905 2,283,471 2,385,540 2,493,366 Health Plan Trust - - - - - 1,484,058 1,714,040 1,992,780 1,919,799 2,586,731 CIAWWC Authority - - 66,915 21,960 95,330 54,900 - - - - Operating grants and contributions - 134,662 93,730 - - - - 17,955 15,598 18,176 Capital grants and contributions - - 228,000 1,045,754 2,785,144 3,228,076 3,285,586 1,540,842 1,445,717 1,495,835 Total business -type activities program revenues 8,611,310 8,859,480 9,242,338 10,212,120 11,940,824 14,382,088 15,230,360 14,724,147 14,955,863 16,804,446 Total primary government program revenues 11,938,065 11,969,414 13,725,273 12,053,356 14,286,328 19,417,685 22,163,726 20,938,762 17,151,643 18,991,498 Net(Expense)/Revenue Governmental activities (5,103,028) (5,307,360) (3,501,480) (6,221,839) (7,866,893) (4,437,664) (4,175,496) (5,342,574) (11,782,398) (12,321,817) Business -type activities 3,276,706 3,132,558 2,140,865 3,242,286 3,800,627 5,148,651 3,916,936 3,288,152 3,074,641 3,900,664 Total primary governmental net (expense)/revenue (1,826,322) (2,174,802) (1,360,615) (2,979,553) (4,066,266) 710,987 (258,560) (2,054,422) (8,707,757) (8,421,153) 65 General Revenues and other Changes in Net Position Governmental activities: General Property taxes and sales tax Franchise fees Intergovernmental Interest income Gain on sale of assets Other revenue Transfers in (out) Total governmental activities Business -type activities: Interest income Gain on sale of assets Other revenue Transfers in (out) Total business -type activities Total primary government Changes in Net Position Governmental Activities Business -type activities Total primary government City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5,366,613 5,642,004 5,975,483 6,499,369 7,123,630 4,790,711 7,001,435 7,132,094 8,827,191 8,608,121 199,194 201,328 203,950 189,494 186,818 195,483 254,956 250,217 229,853 215,779 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 3,241,504 3,223,432 3,074,050 3,696,001 3,511,227 90,432 98,064 157,760 182,445 160,617 97,869 131,771 404,942 586,785 580,286 19,282 - 54,759 78 6,345 - 79,272 18,169 14,035 5,812 766,042 763,697 199,888 186,953 36,711 735,459 462,538 612,016 540,453 740,928 - - - (534,080) - - - - - - 7,753,267 8,028,674 7,965,788 7,927,865 8,701,242 9,061,026 11,153,404 11,491,488 13,894,318 13,662,153 - - 4,000 106,283 105,808 24,178 (159,885) 442,312 751,431 603,660 86,100 736 11,252 - 2,000 800,418 7,626 10,802 - 16,400 - - - - - - 4,599 - 21,686 22,430 - - - 534,080 - - - - - - 86,100 736 15,252 640,363 107,808 824,596 (147,660) 453,114 773,117 642,490 7,839,367 8,029,410 7,981,040 8,568,228 8,809,050 9,885,622 11,005,744 11,944,602 14,667,435 14,304,643 2,650,239 2,721,314 4,464,308 1,706,026 834,349 4,623,362 6,977,908 6,148,914 2,111,920 1,340,337 3,362,806 3,133,294 2,156,117 3,882,649 3,908,435 5,973,247 3,769,276 3,741,266 3,847,758 4,543,154 $ 6,013,045 $ 5,854,608 $ 6,620,425 $ 5,588,675 $ 4,742,784 $ 10,596,609 $ 10,747,184 $ 9,890,180 $ 5,959,678 $ 5,883,491 66 67 City of Chubbuck Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2016 2018 2019 2020 2024 2025 2017 2021 2022 2023 General fund Unassigned $ 3,410,321 $ 3,939,114 $ 1,239,050 $ 107,771 $ (589,351) $ 540,267 $ 1,143,122 $ 5,629,923 $ 7,458,166 $ 7,887,381 Total General Fund 3,410,321 3,939,114 1,239,050 107,771 (589,351) 540,267 1,143,122 5,629,923 7,458,166 7,887,381 All Other Governmental Funds Committed 565,911 453,040 516,555 658,913 910,503 1,566,814 1,765,720 2,491,774 2,552,633 2,965,830 Total all other governmental funds $ 565,911 $ 453,040 $ 516,555 $ 658,913 $ 910,503 $ 1,566,814 $ 1,765,720 $ 2,491,774 $ 2,552,633 $ 2,965,830 67 68 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Revenues: Property taxes and sales tax $ 5,375,566 $ 5,627,360 $ 5,930,753 $ 6,405,974 $ 7,131,017 $ 4,895,548 $ 7,040,950 $ 7,159,837 $ 8,813,419 $ 8,582,614 Franchise fees 199,194 201,328 203,950 189,494 186,818 195,483 254,956 250,217 229,853 215,779 Intergovernmental 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 3,241,504 3,223,432 3,074,050 3,696,001 3,511,227 Court Revenue 28,918 31,942 29,940 34,221 28,081 27,335 28,549 35,076 41,031 26,354 Parks revenue 7,629 10,733 7,729 8,670 2,409 14,275 13,133 18,224 83,382 139,625 License, permits and fines 289,199 320,860 231,180 308,615 220,174 262,953 368,406 461,613 496,883 362,170 Grants 248,290 336,433 43,629 109,076 585,950 2,334,053 516,533 3,339,324 179,289 20,178 Fire protection and prevention 211,041 214,172 237,675 176,925 61,832 5,009 23,963 72 - - Law enforcement - - - - - - 10,433 110 - - Leases and rents 75,850 93,814 92,006 90,800 122,070 116,163 129,209 136,939 116,192 134,980 Interest income 90,432 98,064 157,760 182,445 160,617 97,869 131,771 404,942 586,785 580,286 Donations 23,600 40,149 41,024 70,019 66,947 11,498 518,427 8,084 7,235 11,521 Charges for services 2,960 12,975 155,117 23,556 5,008 11,107 2,700 3,472 3,159 1,528 Otherrevenues 19,063 65,897 86,449 184,022 249,999 720,616 449,760 862,780 540,453 740,928 Total Revenues 7,883,446 8,377,308 8,591,160 9,187,423 10,008,043 11,933,413 12,712,222 15,754,740 14,793,682 14,327,190 68 69 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Expenditures: General government 574,204 496,074 580,806 621,568 1,303,835 1,072,664 914,597 1,050,464 1,276,841 936,901 Law enforcement 2,960,661 3,062,347 3,287,172 3,354,522 3,507,675 3,550,335 3,646,501 3,970,167 4,654,838 5,201,637 Fire control 1,213,866 1,181,308 1,300,583 1,463,484 1,652,703 1,738,732 1,859,209 1,972,237 2,226,915 2,436,691 Building inspection 181,199 186,059 212,747 244,749 8,913 395,491 - - - - Street 1,336,127 1,270,359 1,136,919 1,054,240 1,722,677 1,437,020 1,618,017 1,958,654 2,274,010 2,421,207 Parks and recreation 513,091 502,709 552,176 530,705 509,997 722,129 727,783 775,584 957,126 1,083,357 Building, planning, and development - - - - - - 593,428 482,760 592,855 545,970 Health and welfare 76,884 83,293 90,621 80,049 88,129 91,539 - - - - Other purchased services - - - - - - 234,872 25,500 288,966 197,078 Court fund 1,500 150 1,600 - - - - - - - Parks fund 18,696 - - 17,100 43,181 4,425 - - - - Capital outlays 333,207 953,944 4,160,478 2,806,886 1,771,351 2,882,122 6,032,716 4,818,282 441,282 422,240 Lease and subscription capital outlays - - - - - - 141,108 98,047 100,544 88,201 Note payable principle payment - 87,110 89,750 92,469 Principal lease and subscription finance 25,648 54,584 69,385 122,033 Interest expense - - 3,651 30,527 45,956 31,006 CIAWWC Authority 230,930 2,930 - - - - Total Expenditures 7,440,365 7,739,173 11,323,102 10,173,303 10,608,461 11,894,457 15,797,530 15,323,916 13,018,468 13,578,790 Excess (deficiency) of Revenues over (under) Expenditures 443,081 638,135 (2,731,942) (985,880) (600,418) 38,956 (3,085,308) 430,824 1,775,214 748,400 69 70 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 Other financing sources (uses): Proceeds from note payable 2,930 - 1,000,000 Proceeds from lease and subscription - 141,108 98,046 85,544 88,200 Principal payments (236,050) - - - Proceeds from certificate of participation 152,278 1,749,674 3,666,689 3,665,816 Interest expense - (4,000) (3,869) (3,737) (3,605) - - - - Proceeds from sale of assets 23,953 13,837 99,393 828 6,345 79,272 18,169 14,035 5,812 Total other financing sources (uses) 26,883 (222,213) 95,393 (3,041) 154,886 1,746,069 3,887,069 4,782,031 99,579 94,012 Net Change in Fund Balances 469,964 415,922 (2,636,549) (988,921) (445,532) 1,785,025 801,761 5,212,855 1,874,793 842,412 Beginning Fund Balances - Restated 3,506,268 3,976,232 4,392,154 1,755,605 766,684 322,056 2,107,081 2,908,842 8,136,006 10,010,799 Ending Fund Balances $ 3,976,232 $ 4,392,154 $ 1,755,605 $ 766,684 $ 321,152 $ 2,107,081 $ 2,908,842 $ 8,121,697 $ 10,010,799 $ 10,853,211 70 Local Tax Revenues Highway Fiscal Year Property Tax Franchise Tax Streets & Road Sales Ta City of Chubbuck General Government Tax and Intergovernmental Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) Intergovernmental Revenues Total Total Local State Liquor Highway User's Court Shared Sales Intergovernmental Tax Taxes Tax Revenue Revenue Road & Bridge Tax Taxes Local Taxes as a Percentage Total Taxes of Total 2016 4,164,281 199,194 645,147 566,139 5,574,761 158,211 664,004 28,918 198,466 291,023 1,340,622 6,915,383 81% 2017 4,367,685 201,328 671,658 588,016 5,828,687 160,066 674,106 31,942 175,062 314,347 1,355,523 7,184,210 81% 2018 4,342,621 203,950 962,076 626,056 6,134,703 164,971 685,345 29,940 174,663 348,969 1,403,888 7,538,591 81% 2019 4,820,932 189,494 933,810 651,323 6,595,559 184,041 719,995 34,221 121,341 378,229 1,437,827 8,033,386 82% 2020 5,331,506 186,818 853,514 945,996 7,317,834 205,579 718,902 28,081 69,460 193,180 1,215,202 8,533,036 86% 2021 4,000,938 195,483 894,610 - 5,091,031 243,994 941,626 27,335 447,544 1,608,340 3,268,839 8,359,870 61% 2022 5,995,113 254,956 944,984 100,853 7,295,906 223,452 1,043,079 28,549 171,088 1,785,812 3,251,980 10,547,886 69% 2023 6,216,172 250,217 943,665 - 7,410,054 225,430 1,071,510 35,076 - 1,777,110 3,109,126 10,519,180 70% 2024 7,661,995 229,853 1,151,424 - 9,043,272 214,016 1,692,373 41,031 - 1,789,612 3,737,032 12,780,304 71% 2025 $ 7,476,332 $ 215,779 $ 1,106,282 $ - $ 8,798,393 $ 217,243 $ 1,476,339 $ 26,354 $ - $ 1,817,645 $ 3,537,581 $ 12,335,974 71% 71 City of Chubbuck Assessed Valuation and Tax Rate Last Ten Fiscal Years Fiscal Year Real and Personal Tax Roll Utilities Tax Roll Actual Sub Roll Exemptions Home Owner's Exemptions Personal Annexed Property Property Total Assessed New Actual Value Construction Roll (including 90% exemptions) Levy Rate Tax Rate Per $1,000 Value 2016 475,051,058 7,702,297 1,697,797 251,008,396 81,774 735,541,322 0.010140122 10.14 2017 507,182,903 8,152,805 469,490 263,554,022 81,744 779,440,964 0.010188661 10.19 2018 524,061,262 8,420,799 2,493,034 275,948,575 - 810,923,670 0.010636971 10.64 2019 638,286,498 8,626,813 221,259 314,458,115 961,592,685 0.009459658 9.46 2020 728,136,576 9,592,530 4,293,710 342,427,509 1,084,450,325 0.006863105 6.86 2021 807,089,713 10,409,910 1,462,151 426,293,840 1,245,255,614 0.008121184 8.12 2022 1,115,638,936 10,613,436 1,509,525 46,894,793 1,174,656,690 0.006204404 6.20 2023 1,362,355,753 10,775,944 325,873 470,479,400 1,843,936,970 0.005964973 5.96 2024 1,335,934,784 11,410,042 2,309,126 467,161,705 1,816,815,657 0.006224284 6.22 2025 $ 1,601,717,009 $ 12,754,179 $ 1,830,361 $ 476,720,659 $ $ $ $ 2,093,022,208 0.005506067 5.51 Source: Bannock County Clerks Office 72 City of Chubbuck Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years (per $1,000 of assessed value) City of Chubbuck Overlapping Rates County Road & Ambulance Service School District 25 Year Base Rates Bannock County Rates Bridge Rates Abatement Rates Portneuf Library Rates Rates Rates Combined Levy Rates 2016 10.14 5.24 0.73 0.03 0.61 0.40 3.94 21.09 2017 10.19 5.37 0.67 0.03 0.58 0.40 3.88 21.12 2018 10.64 5.62 0.47 0.03 0.61 0.40 3.85 21.62 2019 9.46 4.85 0.53 0.03 0.52 0.35 3.33 19.06 2020 6.86 3.68 0.50 0.03 0.53 0.34 3.19 15.13 2021 8.12 4.18 0.45 0.03 0.50 0.32 2.93 16.52 2022 6.20 3.23 0.31 0.02 0.37 0.24 1.87 12.26 2023 5.96 3.01 0.30 0.02 0.36 0.24 1.37 11.27 2024 6.22 3.11 0.27 0.02 0.38 0.25 1.20 11.45 2025 5.51 2.82 0.22 0.02 0.35 0.22 0.58 9.72 Source: Bannock County Assessors Office (1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck. 73 City of Chubbuck Principal Taxpayers September 30, 2025 2025 2016 Source: Bannock County Assessors Office 74 Percentage of Assessed Total Assessed Percentage of Total Taxpayer Type of Business Valuation Rank Valuation Assessed Valuation Rank Assessed Valuation IDAHO CENTRAL CREDIT UNION FINANCIAL INSTITUTE $ 75,187,000 1 38.47% $ 20,597,136 1 20.77% CHUBBUCK ARARTMENTS LLC APARTMENTS 27,726,000 2 14.18% - - SHJH LLC REAL ESTATE INVESTMENTS 19,410,000 3 9.93% 7,172,500.00 8 7.23% CHUBBUCK WHITAKER LLC REAL ESTATE INVESTMENTS 13,011,000 4 6.66% - - - RATLIFF, GARY G REAL ESTATE INVESTMENTS 11,406,000 5 5.84% 4,909,089 10 4.95% WAL MART REAL ESTATE RETAIL 11,118,000 6 5.69% 11,555,700.00 4 11.65% GRACE AT CHUBBUCK LLC ASSISTED LIVING 11,000,000 7 5.63% - - AGREE LIMITED PARTNERSHIP REAL ESTATE INVESTMENTS 9,554,000 8 4.89% SIMONCRE PROSPECTOR LLC REAL ESTATE INVESTMENTS 8,533,000 9 4.37% AMERICAN MULTI -CINEMA INC#42360 ENTERTAINMENT 8,520,000 10 4.36% - - - PINE RIDGE MALL JC LLC RETAIL - - 12,113,491 2 12.21% NEIBAUER CHUBBUCK HOLDINGS LLC REAL ESTATE INVESTMENTS 12,074,400 3 12.17% ALLSTATE INSURANCE COMPANY INSURANCE/FINANCE 8,254,281 5 8.32% HD DEVELOPMENT OF MARYLAND INC REAL ESTATE INVESTMENTS 8,250,900 6 8.32% CARMIKE CINEMAS INC. ENTERTAINMENT 7,549,645 7 7.61% TEKLE, HAILE REAL ESTATE INVESTMENTS - 6,709,800 9 6.76% Total Top Ten $ 195,465,000 100.00% $ 99,186,942 100.00% Source: Bannock County Assessors Office 74 City of Chubbuck Ratios of Outstanding Debt by Type Last Ten Fiscal Years (accrual basis of accounting) Note: The estimated populations for years 2012 and 2014 were not available and so the most current estimate was used for these years Source: (1) U.S. Census 75 Governmental Activities Business Type Activities (1) Fiscal General Fund Note Water Notes Sewer Note Total Primary Estimated Per Year Payable Sanitation Notes Water Bond DEQ DEQ Government Population Capita 2016 998,848 1,380,000 200,381 15,297,931 17,877,160 14,517 1,231 2017 927,972 1,260,000 181,814 14,445,385 16,815,171 14,644 1,148 2018 847,636 1,135,000 2,746,190 13,592,841 18,321,667 14,869 1,232 2019 764,418 1,010,000 7,530,708 12,740,295 22,045,421 15,316 1,439 2020 678,292 880,000 8,077,582 11,679,735 21,315,609 15,715 1,356 2021 588,999 745,000 8,278,883 11,035,206 20,648,088 15,842 1,303 2022 - 496,606 605,000 8,257,422 9,974,645 19,333,673 16,032 1,206 2023 912,890 400,781 460,000 8,235,334 9,122,101 19,131,106 16,223 1179.26 2024 823,140 301,643 315,000 8,872,453 8,477,571 18,789,807 16,590 1132.6 2025 $ 730,672 $ 198,793 $ 160,000 $ 8,498,915 $ 7,417,010 $ 17,005,390 16,800 1012.23 Note: The estimated populations for years 2012 and 2014 were not available and so the most current estimate was used for these years Source: (1) U.S. Census 75 City of Chubbuck Revenue Bond Coverage Water Fund Last Ten Fiscal Years Debt Service Requirements (3) Net Revenue Available for Debt Fiscal Year Gross Revenue (1) Operating Expense (2) Service Principal Interest Total 2016 2,783,945 1,535,492 1,248,453 115,000 55,514 2017 2,728,684 1,472,240 1,256,444 120,000 45,443 2018 2,896,320 1,832,479 1,063,841 125,000 34,175 2019 2,983,977 1,744,722 1,239,255 125,000 32,182 2020 2,944,986 1,959,268 985,718 130,000 28,420 2021 3,167,282 1,951,885 1,215,397 135,000 24,507 2022 3,256,843 2,323,718 933,125 140,000 20,445 2023 3,540,200 2,248,996 1,291,204 145,000 16,232 2024 4,063,157 2,316,359 1,746,798 145,000 11,761 2025 $ 4,369,378 $ 2,258,517 $ 2,110,861 $ 155,000 $ 5,928 $ (1) Total revenues ( including interest) (2) Total operating expenses exclusive of asset deprecation, lease amortization, and subscription amortization. (3) Includes principal and interest of revenue bonds only. (4) Pledge of Revenues requires the City to provide net revenues equal to not less than 1.25 times the average annual debt service on the bond. 76 170,514 165,443 159,175 157,182 158,420 159,507 160,445 161,232 156,761 160,928 Coverage 7.32 7.59 6.68 7.88 6.22 7.62 5.82 8.01 11.14 13.12 Pledge of Revenues Coverage Po-dramant !dl 5.86 6.08 5.35 6.31 4.98 6.10 4.65 6.41 8.91 10.49 City of Chubbuck Statistical Information Water Fund September 30, 2025 Schedule of Water Revenue and Production For Residential, Commercial, and Government Accounts Total Operating Revenues $ 4,081,963 Estimated number of active customers 5,017 Total water produced (in 1,000 gallons) 1,100,162 Schedule of Water Rates Monthly Base Fee (by meter size) Size Price Circuit Breaker 1" or less $ 32.10 $ 22.47 1.5 " 92.40 2" 143.01 3" 297.44 4" 487.49 6" 985.01 8" 1,542.69 10" 2,356.69 Volumetric charge: $1.54 per 1,000 gallons metered water. Volumetric charge for circuit breaker: $1.08 per 1,000 gallons metered water. Water Usage Summary (in 1,000 gallons) Business 211,602 Car Wash 9,147 City Property 6,594 Church 18,436 County using city property 17,349 Duplex 15,025 Four Plex 30,585 Motel 6,766 Multiple Units 46,776 Unaccupied 924 Restaurant 17,797 School 3,838 Single Family 691,203 Three Plex 1,012 Trailer Park 23,108 1,100,162 77 CITY OF CHUBBUCK, IDAHO Ten Largest Water System Customers For The Fiscal Year Ended September 30, 2025 (per 1,000 gallon used) Avalon Parks Apartments Apartments 9 4,486 6.2% LDS Church Church 10 4,131 5.7% Total Top Ten Consumers 72,774 100.0% Total Usage 1,100,162 78 0.4 0.4 6.6% of Total Water Top Ten % of Total Customer Business Type Rank Usage Consumers Usage JRN Construction Construction 1 10,075 13.8% 0.9% Circle Inn Trailer Park Mobile Home Park 2 9,348 12.8% 0.8% Idaho Central Credit Union Financial Institute 3 8,922 12.3% 0.8% Yellowstone Villiage Association Apartments 4 8,900 12.2% 0.8% Camelot Estate Mobile Home Park 5 7,931 10.9% 0.7% Seven Synergy LLC Car Wash 6 7,372 10.1% 0.7% Pheasant Ridge HOA Inc. Residential Development 7 5,902 8.1% 0.5% Pine Ridge Idaho LLC Apartment Complex 8 5,707 7.8% 0.5% Avalon Parks Apartments Apartments 9 4,486 6.2% LDS Church Church 10 4,131 5.7% Total Top Ten Consumers 72,774 100.0% Total Usage 1,100,162 78 0.4 0.4 6.6% City of Chubbuck Statistical Information Sewer Fund September 30, 2025 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Operating Revenues $ 6,128,375 Schedule of Sewer Rates Monthly Base Fee Regular Circuit Breaker Residential $ 56.61 $ 39.63 NWSI Residential 10.45 - Commercial rate for businesses North of the Interstate is $8.00 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $9.39 per $1,000 gallons of water used. NWSI Commercial rate is winter water average usage divided by $6.85 and multiplied by $10.45. 79 Deaton & Company, Chartered Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of City of Chubbuck, as of and for the year ended September 30, 2025, and the related notes to the financial statements, which collectively comprise City of Chubbuck's basic financial statements, and have issued our report thereon dated March 25, 2026. Report on Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Chubbuck's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Chubbuck's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Chubbuck's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did not identify any deficiencies in internal control over financial reporting, that we would consider to be a significant deficiency in internal control over financial reporting. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Chubbuck's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho March 25, 2026 Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members cf the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants Honorable Mayor and City Council City of Chubbuck PO Box 5604 Chubbuck, ID 83202 We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Chubbuck for the year ended September 30, 2025. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 20, 2025. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Chubbuck are described in Note 1 to the financial statements. The City has implemented the newest accounting policies that were adopted during the year as of September 30, 2025. The City has implemented GASB Statement up to GASB statement No. 97. We noted no transactions entered into by City of Chubbuck during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the Government-Wide's and enterprise fund financial statements were: Management's estimate of the life expectancies of capital assets, which were based on managements' experience and like kind asset lives. We evaluated the key factors and assumptions used to develop the life expectancies of capital assets in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 25, 2026. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to City of Chubbuck's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Chubbuck's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management discussion and analysis, schedules of budget and actual, and pension schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on combining statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the statistical and introductory sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of City Council, mayor, and management of City of Chubbuck, and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Deaton & Company, Chartered ,1— Pocatello, Idaho March 25, 2026