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HomeMy WebLinkAbout2020onHo CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 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 25-26 Independent Auditor's Report 10-11 Management Discussion and Analysis 12-21 Basic Financial Statements: Statements of Net Position 22 Statements of Activities 23 Balance Sheets - Governmental Funds 24 Statements of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 25-26 Statements of Position - Proprietary Funds 27 Statements of Revenues, Expenses, and Changes in Net Position - Proprietary 28 Statements of Cash Flows - Proprietary Funds 29-30 Statement of Fiduciary Net Position - Recreational Program Fund 31 Statement of Changes in Fiduciary Net Position - Recreational Program Fund 32 Notes to Financial Statements 33-47 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 2 53 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2020 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 61 Financial Trends 62-69 Revenue Capacity 70-73 Debt Capacity 74-76 Operating Information 77-79 Single Audit 80 Schedule of Expenditures of Federal Awards 81 Notes to the Schedule of Expenditures of Federal Awards 82 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 83-84 Independent Auditor's Report on Compliance for Each Major Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance 85-86 Schedule of Findings and Questioned Costs 87 3 INTRODUCTORY SECTION CHUBBUCI( 1 ❑ A H ❑ www.cityofchubbuck.us 5160 Yellowstone, PO Box 5604 Chubbuck, ID 83202 (208) 237-2400 phone (208) 238-2371 fax MAYOR Kevin England March 27, 2021 COUNCIL MEMBERS Ryan Lewis Dan Heiner Melanie Evans Roger Hernandez The Honorable Mayor Kevin England, 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, 2020. 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 firm of licensed certified public accountants has issued an unmodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2020. 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 Chubbuck (population 16,268) was incorporated in 1950. Chubbuck is located in the southeastern portion of the State of Idaho. Chubbuck has a land area of 4.19 square miles and is bordered by the City of Pocatello, with its own population of 57,947. The City is located in Bannock County with a 2020 estimate census population of 88,942. 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 conunittees, 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 fund, 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 27, 2021 Rich Morgan City Treasurer )-- � /I� Daniel Christensen City Accountant CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2020 Title Name Elected Officials Mayor Kevin England Council President Ryan Lewis Council Member Melanie Evans Council Member Dan Heiner Council Member Roger Hernandez City Officials City Attorney Tom Holmes Public Works Director Rodney Burch City Engineer Bridger Morrison Sewer/Water Superintendent Scott Baker/Cameron Lusk Sanitation/Streets Superintendent Ryan Sullivan Treasurer Rich Morgan City Clerk Joey Bowers Human Resource Officer Scott Gummersall City Accountant Dan Christensen Planning and Development Devin Hillam Police Chief Bill Guiberson Computer Information Systems Sergei Tomin Parks & Recreation Bill Guinn Fire Chief Merlin Miller 0 CITY OF CHUBBUCK ORGANIZATION CHART LEGAL PUBLIC HUMAN CLERK FINANCE FIRE SERVICES WORKS RESOURCES UTILITY INFORMATION BILLING TECHNOLOGY r ENGINEERING PLANNING & HIGHWAY, WATER WASTEWATER SANITATION DEVELOPMENT STREETS& ROADS 9 POLICE DEPARTMENT I ANIMAL CONTROL PARKS AND RECREATION Deaton & Company, Chartered�� Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208) 232-5825 Members of the Idaho Society of Cedified Public Accountants Members of the 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 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, 2020, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility 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. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. 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. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements 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 entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position 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 September 30, 2020, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters 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 12-21, 48-50 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. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chubbuck's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. 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 2019 audited financial statements and, in our report dated March 27, 2020, 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. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2021, 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 27, 2021 CITY OF CHUBBUCK, IDAHO Management's Discussion and Analysis For the Year Ended September 30, 2020 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, 2020. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. 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 $67,954,554 (net position). • The governments net position increased by $4,742,784. Approximately 80 percent of this increase, $3,810,177 is attributed to capital contributions. • At the end of the current fiscal year, unassigned fund balances for the general fund was $2,363,778 or 30 percent of total general fund expenditures. • In the City's business -type activities, operating revenues decreased by $10,686, and operating expenses increased by $897,009. These differences are due to a combination of decreases in services used and increases in operating costs. • During the current fiscal year, City of Chubbuck's overall liabilities had an increase of $1,429,049 from $26,949,621 to $28,378,670 (including compensated absences). The increase was primarily due to accrued payroll, interest payable, compensated absences, and utility deposits. • The Chubbuck Impact Area Waste Water Collection Authority has been blended with the business -type activities in the proprietary funds do to the implementation of GASB Statement No. 61. • In 2020, City of Chubbuck began the construction of a new City Hall. 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 of the City's assets, deferred outflows and liabilities with deferred inflows, with the difference between each reported as net position. Overtime, 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. 12 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). Both of the 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 of the funds of the City of Chubbuck can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially 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 evaluation 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 22-26 of this report. 13 Proprietary Funds. The City of Chubbuck maintains two different types of proprietary funds: enterprise funds and internal service funds. 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. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Chubbuck's various functions. The City of Chubbuck uses internal service funds to account for its central garage operations and employee health benefit program. The internal service funds are 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 date from both the types of 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 27-28 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government, wide financial statements because the resources of those funds are not available to support the City of Chubbuck's own programs. The accounting used for fiduciary funds is similar to proprietary funds. The City of Chubbuck adopts an annual appropriated budget for its fiduciary fund. However, the City does not provide budgetary comparison schedules for fiduciary funds. The fiduciary fund financial statements can be found on pages 31-32 of this report. 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 33-47 of this report. 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 and schedule of expenditures of federal awards. 14 Government -wide Financial Analysis As noted earlier, 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 $67,954,554 as of September 30, 2020. 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 service 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. Below is a summary of the City of Chubbuck's Net Position statement. ASSETS Current and other assets Capital assets Total assets DEFERRED OUTFLOWS Pension LIABILITIES Long-term liabilites outstanding Other liabilites DEFERRED INFLOWS Pension Certificate of participation NET POSITION Net investment in captial assets Restricted Unrestricted Total net position Governmental ActivitiesI Business Activities Total 2020 2019 2020 2019 2020 2019 $ 1,622,259 $ 2,546,846 $ 23,029,624 $ 23,296,847 $ 24,651,883 $ 25,843,693 28,622,260 26,473,293 42,829,274 38,291,285 71,451,534 64,764,578 30,244,519 29,020,139 65,858,898 61,588,132 96,103,417 90,608,271 630,614 250,971 305,250 123,623 935,864 374,594 2,911,628 1,550,806 21,798,685 21,719,997 24,710,313 23,270,803 819,309 1,077,689 2,849,048 2,601,129 3,668,357 3,678,818 3,730,937 2,628,495 24,647,733 24,321,126 28,378,670 26,949,621 65,324 550,370 31,620 271,104 96,944 821,474 152,278 - 456,835 - 609,113 - 28,622,260 26,473,293 16,363,939 11,876,681 44,986,199 38,349,974 - - 167,200 166,100 167,200 166,100 (1,695,666) (381,048) 24,496,821 25,076,744 22,801,155 24,695,696 26,926,594 26,092,245 41,027,960 37,119,525 67,954,554 63,211,770 The restricted portion of the City of Chubbuck's net position $167,200, represent resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $22,801,155, may be used to meet the governments' ongoing obligation to citizens and creditors. As of September 30, 2020, the City is able to report positive balances in all three categories of net position, both for the government as a whole, as well as for its separate governmental and business - type activities. At the end of the current fiscal year, 87 percent of the liabilities are made up of noncurrent liabilities. The increase in noncurrent liabilities is due to accrued compensated absences and net pension liabilities. 15 Governmental activities. Governmental activities' key elements are broken down in the following charts. Government activities increased net position by $834,349 and business -type activities increased net position by $3,908,435. The City of Chubbuck's direct charges to users of governmental services totaled $439,574. These charges are for park rentals, building permits and other fees related to public safety and administration. Public safety expenditures, the largest portion in fiscal year 2020, include the fire department and police department and accounts for 57 percent of total charges for services. The second largest portion of expenditures is the parks and street department which accounts for 26 percent of these services. Below is summary of the City of Chubbuck's Changes in Net Position. City of Chubbuck's Changes in Net Position EXPENSES Governmental Activities RusinessActivities Total 2020 2019 2020 2019 2020 2019 REVENUES 835,698 Publicsafety 5,836,410 5,049,129 Program revenues: 5,049,129 Building inspection and street 2,070,501 1,456,770 Charges for services $ 439,574 $ 642,787 $ 9,155,680 $ 9,166,356 $ 9,595,254 $ 9,809,153 Operating grants and contributions 652,897 179,095 - - 652,897 179,095 Capital grants and contributions 1,253,033 1,019,354 2,785,144 1,045,754 4,038,177 2,065,108 General revenue: 2,028,807 Sewer 3,174,444 2,705,251 Property taxes and sales tax 7,123,630 6,499,369 - - 7,123,630 6,499,369 Franchise fees and intergovernmental 1,373,939 1,593,100 - 1,373,939 1,593,100 other 203,673 369,476 107,808 106,283 311,481 475,759 Transfers in - - - 534,080 - 534,080 Total Revenues 11,045,746 10,303,181 12,048,632 10,852,483 23,095,378 21,155,664 EXPENSES General government 1,537,453 836,698 1,537,453 835,698 Publicsafety 5,836,410 5,049,129 5,836,410 5,049,129 Building inspection and street 2,070,501 1,456,770 2,070,501 1,455,770 Parks and recreation 636,713 523,328 536,713 523,328 Health, welfare, and other 131,310 97,149 131,310 97,149 Water - - 2,440,008 2,028,807 2,440,008 2,028,807 Sewer 3,174,444 2,705,251 3,174,444 2,705,251 Sanitation 1,916, 682 1,625,740 1,915,5g2 1,525,740 CIAWWC Authority 509,053 609,036 509,053 609,036 Transfers out - 534,080 - - - 534,080 Total expenses 10,212,397 8,597,154 8,140,197 6,959,834 18,352,594 15,566,988 NETCHANGE IN NET POSITION 834,349 1,706,027 3,908,435 3,882,649 4,742,784 5,588,676 NET POSITION beginning 25,092,245 24,566,971 37,119,525 33,482,184 53,211,770 58,049,155 Prior Period Adjustment - (180,753) (245,308) [426,061} NET POSITION ending $25,925,594 $25,092,245 $41,027,960 $37,119,525 $57,954,554 $ 63,211,770 16 Revenue by Source - Government Activities f� Other 203,67.3 , 2°1• k x Franchise fees and Intergovernmental 1,3731939 , 126 Charges for services ,$439,574 , 4% Property taxes and sales tax 7,1231636 , 65 17 Operating grants and contributions 652,897 r 6 Capital grants and contributions $ 1,253,033 , 11% Expenses and Program Revenues — Governmental Activities 7,000, 000 6,000, 000 5,000,000 4,000, 000 3,000, 000 2,000,000 1,000, 000 ■ Expenses ■ Revenue • The majority of the City of Chubbuck's governmental activities' revenue is received from property and sales tax (65 percent). This amount would be 73 percent of the revenue received without this fiscal year's capital development contributions. • When all taxes, franchise fees, and intergovernmental revenues are added together, they make up 77 percent of the budget. • When revenues are compared to expenses, it shows that none of the City of Chubbuck's programs are 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 2020. No significant losses or revenues were received during the year. The major fund in the City is the general fund. Significant transactions within the general fund this year mainly consisted of payments of personnel, law enforcement expenses, fire department expenses, and street maintenance. 18 Business -type activities. Businesses -type activities' key elements are broken down in the following charts. Othe• 107,808 0.89% Capital grants and dedicate assets $2,785,144 23.12 Charges for services $9,155,680 75.99% Expenses and Program Revenue - Business Type Activities $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Water Sewer Sanitation 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 of the City of Chubbuck's programs are self-supporting. 19 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. In particular, 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 $321,152. Of which ($589,351) 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. Operating revenues were less than operating expenditures by $75,971. With the other financing sources and uses, the net change in the general fund increase $3,513 for fiscal year 2020. As a measure of liquidity, it may be useful to compare both total unassigned fund balance and total fund expenditures. Total Unassigned fund balance represents -5 percent of total general 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: $5,723,123, Sewer: $15,041,835, and Sanitation: $3,634,971. The water fund had an increase in net position of $2,551,054; the sewer fund had an increase in net position of $1,684,814; and the sanitation fund had an increase in net position of $49,709. General Fund Budgetary Highlights The City made no revision to the original appropriations approved by the City Council. The general fund actual revenues and expenditures were greater than budget. The difference accounts for a $3,513 increase in the general fund balance. The major variances in expenditures were due to an increase in the general government, health and welfare, and capital outlays expenditures. The highway, streets and roads fund actual revenues and expenditure were more than budget. The difference accounts for a $700,635 decrease in the highway, streets, and roads fund balance. The major variances in expenditures were due to an increase in capital outlays expenditures. 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, 2020 amounts to $71,451,534 (net of accumulated depreciation). This investment in capital assets includes land, machinery, equipment, other improvements, and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year was $23,162,474. The increase in assets includes development contributions of $3,810,177. 20 Land Building & Improvements Machinery & Equipment Infrastructure Work in Progress CIAW WCA: Land Infrastructure Office Equipment Water Rights Total City of Chubbuck's Capital Assets Governmental Activities 2020 2019 $ 2,137,999 $ 1,944,799 4,822,142 4,809,820 5,228,317 5,064,036 18,511,282 12,884,771 5,664,961 8,649,391 Business Activities 2020 2019 $ 1,838,797 $ 1,505,111 21,062,966 8,141,147 7,771,799 7,638,055 3,295,176 10,975,468 386,226 386,226 18,183,193 18,183,193 Tata 1 2020 2019 $ 3,976,796 $ 3,449,910 25,885,108 12,950,967 13,000,116 12,702,091 18,511,282 12,884,771 8,960,137 19,624,859 386,226 386,226 18,183,193 18,183,193 - - 2,421,167 2,421,167 2,421,167 2,421,167 $ 36,364,701 $ 33,352,817 $ 54,959,324 $ 49,250,367 $ 91,324,025 $ 82,603,184 Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 40-41 of this report. Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total long-term debt outstanding of $24,710,313. Of this amount, $11,679,735 is comprised of notes to the Department of Environmental Quality for waste water infrastructure. Long-term debt also includes bonds with a remaining balance of $924,132 used for purchasing water rights. The State of Idaho mandates a general obligation debt limit of 9% of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has no general obligation debt. The limit totaled $97,600,529 based on September 30, 2020's actual assessed values. Therefore $97,600,529 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 10 on pages 41-43 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 question about this report or need any additional financial information, contact the Mayor and City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400. 21 ASSETS Current assets Cash and cash equivalent Investments Property taxes receivable Intergovernmental receivables Interest receivable Internal balances due to/from Prepaid expenses Other accounts receivable Noncurrent assets Restricted assets Bond reserves Utility deposits Capital assets Accumulated depreciation DEFERRED OUTFLOWS Pension CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2020 LIABILITIES Current liabilities Accounts payable Accrued payroll Accrued bond interest Interest payable Unearned revenue Current portion compensated absences Current portion of bonds payable Current portion of long-term debt Utility deposits Noncurrent liabilities Bonds payable Note payable Accrued compensated absences Net pension liabilities DEFERRED INFLOWS Pension Certificate of participation NET POSITION Net investment in capital assets Restricted Unrestricted Governmental Business -type Development Activities Activities Total Authority $ 4,214,760 $ 15,896,578 $ 20,111,338 $ 2,721,042 - 2,033,194 2,033,194 - 492,153 - 492,153 16,452 551,804 - 551,804 - 13,991 3,737 17,728 - (3,737,049) 3,737,049 - - 82,632 - 82,632 - 3,968 766,642 770,610 71,222 1,622,259 22,437,200 24,059,459 2,808,716 - 167,200 167,200 - - 425,224 425,224 - 36,364,701 54,959,324 91,324,025 1,622,524 (7,742,441) (12,130,050) (19,872,491) - 28,622,260 43,421,698 72,043,958 1,622,524 30,244,519 65,858,898 96,103,417 4,431,240 630,614 305,250 935,864 - 510,836 1,133,057 1,643,893 91,132 218,841 113,159 332,000 - - 2,683 2,683 - 3,737 229,361 233,098 - 34 - 34 - 85,861 28,275 114,136 - - 142,355 142,355 - - 774,934 774,934 150,000 - 425,224 425,224 - 819,309 2,849,048 3,668,357 241,132 - 781,777 781,777 - - 19,660,675 19,660,675 221,233 343,445 113,098 456,543 - 2,568,183 1,243,135 3,811,318 - 2,911,628 21,798,685 24,710,313 221,233 3,730,937 24,647,733 28,378,670 462,365 65,324 31,620 96,944 - 152,278 456,835 609,113 - 28,622,260 16,363,939 44,986,199 1,251,291 - 167,200 167,200 1,270,859 (1,695,666) 24,496,821 22,801,155 1,446,725 $ 26,926,594 $ 41,027,960 $ 67,954,554 $ 3,968,875 22 See accompanying notes to financial statements Functions/Programs Primary Government: Governmental activities: General government Law enforcement Fire control Building inspection Highway, streets, and roads Parks and recreation Health and welfare Other special funds Business -type activities Water Sewer Sanitation CIAWWC Authority Total primary government CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2020 Program Revenues Total Operating Capital Net Charges for Grants and Grants and (Expense) Development Expenses Services Contributions Contributions Revenue Authority $ 1,537,463 $ 342,244 $ - $ - $ (1,195,219) $ 3,896,661 28,081 319,547 - (3,549,033) 1,939,749 61,832 16,383 - (1,861,534) 28,004 - - - (28,004) 2,042,497 1,292 250,000 1,253,033 (538,172) 636,713 6,125 20 - (630,568) 88,129 - - - (88,129) 43,181 - 66,947 - 23,766 10,212,397 439,574 652,897 1,253,033 (7,866,893) 2,440,008 2,944,986 - 1,888,316 2,393,294 3,174,444 4,163,168 - 668,828 1,657,552 1,916,682 1,952,196 - - 35,514 609,063 95,330 - 228,000 (285,733) 8,140,197 9,155,680 - 2,785,144 3,800,627 $ 18,352,594 $ 9,595,254 $ 652,897 $ 4,038,177 $ (4,066,266) $ Component Unit: Chubbuck Development Authority $ 952,853 70,000 - $ 952,853 70,000 - Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION General Business -type $ (882,853) $ (882,853) Development Total Authority $ (7,866,893) $ 3,800,627 $ (4,066,266) $ (882,853) 7,123,630 - 7,123,630 2,707,024 186,818 - 186,818 - 1,187,121 - 1,187,121 - 160,617 105,808 266,425 18,912 6,345 2,000 8,345 - 36,711 - 36,711 275 8,701,242 107,808 8,809,050 2,726,211 834,349 3,908,435 4,742,784 1,843,358 26,092,245 37,119,525 63,211,770 2,125,517 $ 26,926,594 $ 41,027,960 $ 67,954,554 $ 3,968,875 23 See accompanying notes to financial statements 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, CITY OF CHUBBUCK, IDAHO are not reported in the funds, net of accumulated depreciation of $6,879,524. 28,622,260 Unavailable revenue represents amounts that were not available to fund current BALANCE SHEET Property tax 254,351 Deferred outflows and inflows of resources related to pensions and certificate of participation GOVERNMENTAL FUNDS Deferred outflows of resources related to pensions 630,614 Deferred inflows of resources related to pensions and certificates of participation SEPTEMBER 30, 2020 Internal service funds are used to charge the costs of certain activities, such as employee health insurance and equipment maintenance to individual funds. The assets and liabilities of the internal services funds applicable to governmental Highway, activities are included in governmental activities in the statement of net position. 227,447 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Streets, Accrued compensated absences Other Net pension liability (2,568,183) General and Roads Governmental Fund Fund Funds Total ASSETS Cash $ 2,082,195 $ 994,615 $ 910,503 $ 3,987,313 Accounts receivable 2,708 1,260 - 3,968 Property and sales taxes receivable 444,475 47,678 492,153 Intergovernmental receivables 76,301 198,263 274,564 Interest receivable 13,991 - 13,991 Prepaid expense 82,632 82,632 Grant receivable 277,240 - - 277,240 $ 2,979,542 $ 1,241,816 $ 910,503 $ 5,131,861 LIABILITIES Accounts payable $ 148,387 $ 362,449 $ - $ 510,836 Accrued payroll 187,233 31,608 - 218,841 Accrued compensated absences 71,547 14,314 - 85,861 Interest Payable - 3,737 - 3,737 Due to other funds - 3,737,049 - 3,737,049 407,167 4,149,157 - 4,556,324 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - taxes 208,568 45,783 - 254,351 Unavailable revenues - prepaid 29 5 34 208,597 45,788 - 254,385 FUND BALANCES Committed - - 910,503 910,503 Unassigned 2,363,778 (2,953,129) - (589,351) 2,363,778 (2,953,129) 910,503 321,152 $ 2,979,542 $ 1,241,816 $ 910,503 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 $6,879,524. 28,622,260 Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds: Property tax 254,351 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 630,614 Deferred inflows of resources related to pensions and certificates of participation (217,602) Internal service funds are used to charge the costs of certain activities, such as employee health insurance and 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. 227,447 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Accrued compensated absences (343,445) Net pension liability (2,568,183) Net position of governmental funds $ 26,926,594 24 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 EXPENDITURES General government 1,303,835 Highway, - 1,303,835 Law enforcement 3,507,675 - Streets, Other 1,652,703 - General and Roads Governmental - - 8,913 Fund Fund Funds Total REVENUES 509,997 - - 509,997 Health and welfare Property taxes and sales tax $ 6,277,503 $ 853,514 $ - $ 7,131,017 Franchise fees 186,818 - - 186,818 Intergovernmental income 398,759 788,362 - 1,187,121 Court Revenue 28,081 - - 28,081 Parks revenue 2,409 - - 2,409 Licenses, permits and fines 220,174 - - 220,174 Grants 335,950 250,000 - 585,950 Fire protection and prevention 61,832 - - 61,832 Leases and rents 122,070 - - 122,070 Interest income 147,603 10,824 2,190 160,617 Donations 5,153 - 61,794 66,947 Charges for services 3,716 1,292 - 5,008 Other revenues 9,625 9,587 230,787 249,999 7,799,693 1,913,579 294,771 10,008,043 EXPENDITURES General government 1,303,835 - - 1,303,835 Law enforcement 3,507,675 - - 3,507,675 Fire control 1,652,703 - - 1,652,703 Building inspection 8,913 - - 8,913 Highway, streets, and roads - 1,722,677 - 1,722,677 Parks and recreation 509,997 - - 509,997 Health and welfare 88,129 - - 88,129 Other purchased services - - 43,181 43,181 Capital outlays 804,412 966,939 - 1,771,351 7,875,664 2,689,616 43,181 10,608,461 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (75,971) (776,037) 251,590 (600,418) OTHER FINANCING SOURCES (USES) Proceeds from certificate of participation 76,139 76,139 - 152,278 Interest expense - (3,737) - (3,737) Proceeds from sale of assets 3,345 3,000 - 6,345 79,484 75,402 - 154,886 NET CHANGE IN FUND BALANCES 3,513 (700,635) 251,590 (445,532) BEGINNING FUND BALANCE 2,360,265 (2,252,494) 658,913 766,684 ENDING FUND BALANCE $ 2,363,778 $ (2,953,129) $ 910,503 $ 321,152 (Continued) 25 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Tnta I 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 $ (445,532) 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 1,253,033 Capital asset purchases capitalized 1,771,351 Depreciation expense (875,417) The net affect of sales transactions involving capital assets 2,148,967 Unavailable revenues are not recorded as current period receipts (7,387) 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 (213,288) 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 (35,604) 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 (460,529) Certificate of participatoin expenses in excess of deferred inflows (152,278) Change in net position $ 834,349 W! See accompanying notes to financial statements ASSETS Current assets Cash and cash equivalents Accounts receivable Noncurrent assets Restricted assets Bond reserves Utility deposits Advance to joint venture Investments Capital assets Accumulated depreciation Interest receivable Due from other funds DEFERRED OUTFLOWS Pension LIABILITIES Current Liabilities Accounts payable Payroll payable 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 Advance payable Note payable Compensated absences Net pension liabilities DEFERRED INFLOWS Pension Certificate of participation NET POSITION CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2019 Internal Internal Service Service Water Sewer Sanitation CIAWWCA Total 2019 Funds 2020 Funds 2019 $ 4,225,875 $ 7,136,004 $4,416,404 $ - $15,778,283 $ 15,866,386 $ 345,742 $ 629,622 299,580 311,331 155,731 766,642 809,308 4,525,455 7,447,335 4,572,135 16,544,925 16,675,694 345,742 629,622 167,200 - - 1,111,654 167,200 166,100 37,144 34,155 422,224 2,750 250 10,260 425,224 389,134 26,848 142,355 - 16,558,880 - 137,355 16,558,880 16,879,253 - 2,683 2,033,194 - - 89,581 2,033,194 2,004,574 - - 24,992,741 6,927,358 4,208,720 18,569,420 54,698,239 48,989,283 261,085 261,085 (3,336,945) (3,565,831) (1,943,168) (3,030,532) (11,876,476) (10,707,278) (253,574) (251,805) 3,737 3,737 3,868 - 3,737,049 - - 3,737,049 31868,590 - - 24,278,414 23,663,943 2,265,802 15,538,888 65,747,047 61,593,524 7,511 9,280 28,803,869 31,111,278 6,837,937 15,538,888 82,291,972 78,269,218 353,253 638,902 113,949 101,600 89,701 - 305,250 123,623 191,087 453,492 467,075 1,111,654 815,282 21,403 2,355 41,860 37,144 34,155 113,159 85,951 - - 15,357 10,260 2,658 28,275 26,848 142,355 - - 142,355 137,355 2,683 - - 2,683 3,008 20,824 664,529 89,581 774,934 959,212 227,449 - 1,912 229,361 181,984 422,224 2,750 250 425,224 389,134 1,063,839 1,168,175 595,631 2,827,645 2,598,774 21,403 2,355 781,777 1,587,260 (1,019,992) 16,356,428 11,867,401 7,511 9,280 - 781,777 924,132 - - - 16,558,880 16,558,880 16,879,253 8,056,758 11,015,206 588,711 - 19,660,675 20,076,209 61,428 41,039 10,631 113,098 107,392 464,059 413,766 365,310 1,243,135 612,264 9,364,022 11,470,011 964,652 16,558,880 38,357,565 38,599,250 10,427,861 12,638,186 1,560,283 16,558,880 41,185,210 41,198,024 21,403 2,355 11,804 10,524 9,292 31,620 271,104 160,197 160,806 135,832 456,835 - Net investment in capital assets 12,427,633 3,361,527 1,587,260 (1,019,992) 16,356,428 11,867,401 7,511 9,280 Restricted for bond service 167,200 - - 167,200 166,100 - - Unrestricted 5,723,123 15,041,835 3,634,971 24,399,929 24,890,212 324,339 627,267 $ 18,317,956 $18,403,362 $5,222,231 $(1,019,992) 40,923,557 _L26,923,713$ 331,850 _L_t Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 104,403 $ 41,027,960 27 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, 2020 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2019 28 See accompanying notes to financial statements Internal Internal Service Service Water Sewer Sanitation CIAWWCA Total 2019 Funds 2020 Funds 2019 OPERATING REVENUES Service revenue $ 2,020,854 $ 4,163,168 $ 1,952,196 $ 95,330 $ 8,231,548 $ 8,104,879 $ 78,709 $ 73,931 Revenue used as security for revenue bond: Charges for services 924,132 924,132 1,061,487 2,944,986 4,163,168 1,952,196 95,330 9,155,680 9,166,366 78,709 73,931 OPERATING EXPENSES Administration - - - - - - 285,277 - Salaries and wages 798,327 713,174 631,000 2,142,501 2,037,080 - - Personnel benefits 371,731 315,645 307,230 994,606 702,997 5,322 5,600 Repairs and maintenance 410,137 110,806 513,121 1,034,064 980,200 20,420 12,411 Supplies and tools 57,800 36,171 129,020 222,991 130,275 28,435 4,668 Travel, meetings, and training 4,167 3,027 2,157 9,351 28,595 2,676 4,240 Fuels and lubricants 12,181 6,807 55,005 73,993 81,120 30,219 33,352 Telephone and communications 6,420 5,400 5,400 17,220 16,429 - - Utilities 173,571 29,580 3,664 206,815 193,609 10,685 12,936 Treatment - Pocatello - 1,582,338 - 1,582,338 1,467,281 - - Other purchased services 22,582 - 44,161 66,743 64,559 Professional services 98,724 161,415 313 2,957 263,409 93,845 Bad debt 3,628 - 3,573 - 7,201 3,014 - - Depreciation 289,988 143,158 139,945 606,106 1,179,197 1,104,416 1,769 2,572 2,249,256 3,107,521 1,834,589 609,063 7,800,429 6,903,420 384,803 75,779 OPERATING INCOME 695,730 1,055,647 117,607 (513,733) 1,355,251 2,262,946 (306,094) (1,848) NONOPERATING REVENUE (EXPENSE) Interest income 14,517 21,525 14,195 50,237 83,497 1,397 3,117 Investment income 51,834 - - 51,834 18,917 - - Note interest income - 3,737 3,737 3,869 Bond interest expense (28,420) - (28,420) (32,182) Note interest expense (4,253) (25,563) - (29,816) (33,319) Grant revenue 228,000 228,000 228,000 Certificate of participation (66,670) (66,923) (56,530) - (190,123) - Gain (Loss) from asset disposal 2,000 2,000 - Transfers in (out) 534,080 (32,992) (39,661) (67,898) 228,000 87,449 802,862 1,397 3,117 CAPITAL CONTRIBUTIONS Developer contributions 1,888,316 668,828 2,557,144 817,754 1,888,316 668,828 2,557,144 817,754 CHANGES IN NET POSITION 2,551,054 1,684,814 49,709 (285,733) 3,999,844 3,883,562 (304,697) 1,269 BEGINNING NET POSITION 15,766,902 16,718,548 5,172,522 (734,259) 36,923,713 33,285,459 636,547 635.278 PRIOR PERIOD ADJUSTMENT (245,308) ENDING NET POSITION $ 18,317,956 $18,403,362 $ 5,222,231 $(1,019,992) $40,923.557 $ 36,923,713 $ 331,850 S 636.547 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (91,409) Change in net position of business -type activities $ 3,908,435 28 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2019 29 See accompanying notes to financial statements Internal Internal Service Service Water Sewer Sanitation CIAWWCA Total 2019 Funds 2020 Funds 2019 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from revenues $ 2,970,007 $ 4,173,969 $ 1,951,838 $ 95,330 $ 9,191,144 $ 9,134,257 $ 80,106 $ 77,048 Cash paid to suppliers (1,093,749) (1,747,783) (336,064) (2,957) (3,180,553) (4,335,005) (358,664) (68,331) Cash paid to employees (1,071,966) (950,169) (870,871) - (2,893,006) (2,729,662) (5,322) (5,600) Net cash provided by operating activities 804,292 1,476,017 744,903 92,373 3,117,585 2,069,590 (283,880) 3,117 CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Transfer from (to) other funds - - - - - 534,080 - Net change in interfund loans 451,914 (320,373) 131,541 131,410 Proceeds from grants - 228,000 228,000 228,000 Proceeds from deposits (payments) 35,940 350 (200) 36,090 19,636 Net cash (used) in noncapital financing activities 35,940 452,264 (200) (92,373) 395,631 913,126 CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on capital debt (157,601) (1,060,560) (86,126) (1,304,287) (1,088,439) Interest paid on capital debt (32,997) (25,732) (58,729) (65,958) Proceeds from debt 567,120 - - 567,120 4,804,837 Proceeds from certificate of participation 93,527 93,883 79,302 266,712 - Proceeds from asset disposals - 2,000 - 2,000 Purchase of capital assets (1,268,554) (876,857) (968,854) (3,114,265) (5,119,282) Interest received 66,352 25,393 14,195 105,940 87,498 Net cash provided (used) in capital and related financing activities (732,153) (1,816,141) (987,215) (3,535,509) (1,381,344) CASH FLOW FROM INVESTING ACTIVITIES Cash paid for investments (28,620) (28,620) (2,004,574) Interest from investment 18,917 Net cash provided by financing activities (28,620) - (28,620) (1,985,657) - NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS 79,459 112,140 (242,512) (50,913) (384,285) (283,880) 3,117 BEGINNING CASH AND CASH EQUIVALENTS 4,735,840 7,026,614 4,659,166 16,421,620 16,805,905 629,622 626,505 ENDING CASH AND CASH EQUIVALENTS $ 4,815,299 $ 7,138,754 $ 4,416,654 $ $ 16,370,707 $ 16,421,620 $ 345,742 $ 629,622 CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents $ 4,225,875 $ 7,136,004 $ 4,416,404 $ $ 15,778,283 $ 15,866,386 $ 345,742 $ 626,622 Cash and cash equivalents - Restricted 589,424 2,750 250 592,424 555,234 - - $ 4,815,299 $ 7,138,754 $ 4,416,654 $ $ 16,370,707 $ 16,421,620 $ 345,742 $ 626,622 29 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2019 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 30 See accompanying notes to financial statements Internal Internal Service Service Water Sewer Sanitation CIAWWCA Total 2019 Funds 2020 Funds 2019 OPERATING INCOME $ 695,730 $ 1,055,647 $ 117,607 $ (513,733) $ 1,355,251 $ 2,262,946 $ (304,697) $ 1,269 RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation 289,988 143,158 139,945 606,106 1,179,197 1,104,416 1,769 2,572 Pension expense 83,519 67,952 58,287 - 209,758 9,056 - - Bad debt expense 3,628 - 3,573 7,201 3,014 (Increase) decrease in assets Accounts receivable 25,022 10,801 (358) 35,465 (32,108) - - Increase (decrease) in liabilities Accounts payable (308,166) 187,761 416,777 296,372 (1,279,092) 19,048 (724) Payroll payable 10,099 8,601 8,508 27,208 3,246 - - Accrued compensated absences 4,472 2,097 564 - 7,133 (1,888) - - Total adjustments 108,562 420,370 627,296 606,106 1,762,334 (193,356) 20,817 1,848 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 804,292 $ 1,476,017 $ 744,903 $ 92,373 $ 3,117,585 $ 2,069,590 $ (283,880) $ 3,117 30 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2019 Recreation Liabilities Accounts payable Programs Health Plan 79,498 Health claims incurred but not reported - 89,213 Trust Fund Trust Fund Unearned contributions - 97,663 97,663 2020 2020 Total 2019 Assets Net Position Cash $ 43,242 $ 606,720 $ 649,962 $ 399,776 On deposit with third party administrator - 50,000 50,000 50,000 Prepaid expenses - - - 26,792 Stop loss receivable - 44,170 44,170 79,514 Contributions receivable - - - - 43,242 700,890 744,132 556,082 Liabilities Accounts payable - 35,486 35,486 79,498 Health claims incurred but not reported - 89,213 89,213 96,250 Unearned contributions - 97,663 97,663 85,917 - 222,362 222,362 261,665 Net Position Held in trust $ 43,242 $ 478,528 $ 521,770 $ 294,417 31 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2019 Additions Contributions COBRA contributions Registration fees Sponsorships Other revenue Total additions Deductions Stop -loss coverage Taxes Broker fees Professional service fees Continuation fees Change in incurred but not reported Bonded insurance expense Immunization Claims administration/TPA fees Claims incurred Director's compensation Boy's baseball Girl's softball Tee/tiger ball Bad debt expense Other expenses Total deductions Change in net position Net position - beginning of the year Net position - end of the year Recreation Programs Health Plan Trust Fund Trust Fund IMIM 7A7fl -r-4-1 7A40 $ - $ 1,430,607 $1,430,607 $ 1,023,925 - - - 721 36,361 - 36,361 54,198 1,750 - 1,750 10,485 - 170,741 170,741 160,669 38,111 1,601,348 1,639,459 1,249,998 - 322,109 322,109 301,653 - 984 984 921 - 24,020 24,020 24,080 - 13,800 13,800 22,502 - 500 500 500 - (7,037) (7,037) 24,049 - 295 295 - - 5,631 5,631 6,794 - 70,470 70,470 70,000 - 875,546 875,546 762,429 - - - 5,500 23,822 - 23,822 26,764 9,588 - 9,588 18,246 4,704 - 4,704 7,465 - 65,062 65,062 - 2,612 - 2,612 1,692 40,726 1,371,380 1,412,106 1,272,595 (2,615) 229,968 227,353 (22,597) 45,857 248,560 294,417 317,014 $ 43,242 $ 478,528 $ 521,770 $ 294,417 32 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 15) NOTE 1 - Summary of Sianificant Accountina 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 77. The City has chosen to early implement GASB 91. 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 two component units; the Chubbuck Development Authority and the Chubbuck Impact Area Waste Water 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 to fund projects. These projects could include providing infrastructure, purchasing land and demolishing blighted structures or rehabilitating structures to provide for low income housing, among others. All non -private projects are donated to the City of Chubbuck. 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, 5160 Yellowstone Ave, Chubbuck, Idaho 83202. Blend Component Unit - Enterprise Fund Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA) Effective September 1, 2007, Bannock County, Idaho, City of Pocatello, Idaho and the City of Chubbuck, Idaho entered into a Joint Powers Agreement creating the Chubbuck Impact Area Wastewater Collection Authority for the purpose of financing, designing, acquiring, constructing, managing, and operating a sewage collection facility along with transmission mains and lift stations. The Authority is a public entity of the State of Idaho, therefore, the Authority's income is exempt form Federal and Idaho income taxes. A three-member board governs the Chubbuck Impact Area Wastewater Collection Authority with one member representing Bannock County, one member representing the City of Pocatello and one member representing the City of Chubbuck. The City of Chubbuck provides loans to the Authority with no interest or maturity date. Outstanding balance of loans to the authority at year-end totaled $16,558,880. The City of Chubbuck has all rights and obligations of assets and liabilities within the Authority. Upon termination of this Agreement, title to all buildings, improvements, facilities, equipment and personal property held by the Authority shall become the property of the City of Chubbuck. Complete financial statements of the Authority can be obtained from the City Clerk, City of Chubbuck, 5160 Yellowstone 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. 33 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 15) NOTE 1 - Summary of Sianificant Accountina Policies (Continued) B. Basis of Presentation (continued) 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. 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 and sanitation funds. 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. Internal Service Funds Central Garage Each fund is allocated the costs of operations based on equipment maintenance and repairs to their departments. Employee Health Benefit The City encourages its employees to live a healthy lifestyle. The idea is that if we have healthy employees, the health insurance medical claims will remain low. The Employee Health Benefit Fund assists with costs like immunization, health screening, and weight loss. 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 15) NOTE 1 - Summary of Significant Accountina Policies (Continued) B. Basis of Presentation (continued) Fiduciary Funds Fiduciary funds account for resources held for the purpose of parties outside the government. The City of Chubbuck accounts for two fiduciary funds. Recreation Program Trust Fund The Recreation Program Trust Fund is used to account for assets held by the City for the use of the baseball and softball program. The recreation program maintains the spending control of the fund. Health Plan Trust Fund 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. 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. 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 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 15) NOTE 1 - Summary of Sianificant Accountina Policies (Continued) D. Budgets and Encumbrances Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, highway, streets and roads, and special revenue funds. 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 $25,000 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. Govemment-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 Ki: CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 15) NOTE 1 - Summary of Sianificant Accountina Policies (Continued) G. Capital Assets (continued) 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 general fund that are legally restricted as to their use. The primary restricted assets are related to employee benefits. 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. I. 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, 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. J. 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. K. 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. L. 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." 37 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 15) NOTE 1 - Summary of Sianificant Accountina Policies (Continued) L. Equity Classifications (continued) 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. M. 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. N. 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. NOTE 2 - Leaal Compliance - Budaets 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. 38 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 15) NOTE 3 - 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 $ 167,200 425,224 $ 592,424 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 $425,224 at year-end. NOTE 4 - 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, $492,153 in outstanding property taxes were expected to be collected and remitted by the County. NOTE 5 - Tax Abatements The City has no tax abatement agreements as of September 30, 2020. NOTE 6 - Cash. Cash Eauivalents and Investments Primary Government: Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Balance Restricted $ 592,424 Unrestricted 20,111,338 $ 20,703,762 Fiduciary Fund: Balance Cash $ 649,962 $ 649,962 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 $21,353,724 and the bank balance was $17,144,501. 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 $3,561,359. 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. 39 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 15) NOTE 6 - Cash and Cash Equivalents and Investments (Continued) Investments As of September 30, 2020, the City had the following investments Maturities More Than Fair Value No Maturity 1-10 Years 10 Years Moody / S&P Money Funds $ 3,000 $ 3,000 $ - $ N/A U.S. Government Bonds 2,033,194 - 2,033,194 Aaa / AA+ Total Investments $ 2,036,194 $ 3,000 $ 2,033,194 $ 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 $ 2,721,042 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 $2,721,042. 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 subject to custodial credit risk. 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 Component Unit - Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA): Deposits and Investments - The CIAWWCA has no deposits or investments. Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted 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 CIAWWCA's deposits (cash and certificates of deposit) was $0. At year-end, all the Authority's deposits were held in a financial institution. All deposits were guaranteed by the Federal Deposit Insurance Corporation and were not subject to custodial credit risk. NOTE 7 - Receivables 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 business -type funds are as follows 40 CIAWWC Water Sewer Sanitation Authority Total Accounts Receivables $ 321,598 $ 326,102 $ 162,806 $ $ 810,506 Allowance for Doubtful Accounts (22,018) (14,771) (7,075) (43,864) $ 299,580 $ 311,331 $ 155,731 $ $ 766,642 40 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 15) NOTE 8 - Concentration of Credit Risk 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. NOTE 9 - Changes in Capital 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 $ 1,944,799 $ 193,200 $ - $ 2,137,999 8,649,391 1,506,415 4,490,845 5,664,961 12,884,771 5,626,511 - 18,511,282 4,809,820 12,322 - 4,822,142 5,064,036 176,781 12,500 5,228,317 33,352,817 7,515,229 4,503,345 36,364,701 6,879,524 875,417 12,500 7,742,441 $ 26,473,293 $ 6,639,812 $ 4,490,845 $ 28,622,260 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 NOTE 10 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Beginning Ending Balance Additions Deletions Balance $ 1,891,337 $ 333,686 $ $ 2,225,023 2,421,167 - 2,421,167 10,975,468 2,247,999 9,928,291 3,295,176 26,324,340 12,921,819 - 39,246,159 7,638,055 143,744 10,000 7,771,799 49,250,367 15,647,248 9,938,291 54,959,324 10,959,083 1,180,967 10,000 12,130,050 $ 38,291,284 $ 14,466,281 $ 9,928,291 $ 42,829,274 Governmental Business -type $ 85,861 $ 28,275 343,445 113,098 $ 429.306 $ 141.373 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. 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 15) NOTE 10 - Lona -term Debt and Accrued Compensation (Continued) Governmental Activities: As of year end, the governmental fund had no long-term debt. Business -type activities: 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 $ 20,824 Noncurrent portion 102,292 $ 123,116 At year-end the City was authorized, on a line -of -credit, 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 at the close of the loan. At year-end all four loans were closed. The notes were used to finance the designing and constructing of the Chubbuck Northwest Sewer Interceptor. The notes could be used to finance services to provide environmental field studies, public involvement, and agency permit applications. If funds allow, it could include the purchase of needed right-of-way for construction of the sewer system. 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. $ 115,587 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. 5,937,756 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. 5,531,685 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. 94,707 $ 11,679,735 Less current portion 664,529 Noncurrent portion $ 11,015,206 In 2016, the City received a loan award from the Department of Environmental Quality (DEQ) for an amount not to exceed $8,500,000 at 2.75% interest. Payments will begin after the closing of the loan with biannual installments to cover principal and interest over 20 years. The loan is being used to finance the designing and constructing of a well in Copperfield Landing. The loan not closed at the end of fiscal year 2020. Available Principal $ 545,534 $ 7,954,466 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: Water Revenue Bond Less current portion Noncurrent portion Net Premium Principal Total $ 44,132 $ 880,000 $ 924,132 44,132 880,000 924,132 7,355 135,000 142,355 $ 36.777 $ 745.000 $ 781.777 Bond premiums, net amortization totaled $44,132. 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. 96 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 15) NOTE 10 - Lona -term Debt and Accrued Compensation (Continued) Notes Payable On June 4, 2008, the City issued three notes to purchase assets needed in order to collect sanitation for the City. Notes one and two were issued at 5.50% and the third note at 5.25%. The third note was refinanced in 2009. The notes were issued for $936,576, $541,537 and $1,375,000 with monthly payments of $17,890, $6,985, and $9,321, respectively until the maturity date of May 5, 2013, 2016 and 2029, respectively. Note 1 was paid in it's entirety on May 6, 2013. Note 2 was prematurely paid off on June 25, 2015. Notes Payable: Balance Note 1 $ - Note 2 - Note 3 678.292 678,292 Less current portion 89.581 Noncurrent portion _L_588 ,711 Interfund Transfers and Due To/Due From 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 Due to Due to Highway, Streets, and Roads $ 3,737,049 $ Sewer Enterprise Fund Balance 31737,049 Reductions $ 3,737,049 _L_1737 Annual Debt Service Requirements for leases, bonds and notes payable Year Ending Governmental Activities Business -type Activities September 30 Principal Interest Principal Interest 2021 $ $ $ 8,969,766 $ 57,944 2022 1,098,171 50,013 2023 1,107,112 41,796 2024 1,110,203 33,288 2025 1,124,354 23,185 2026-2030 4,580,247 14,114 2031-2035 3,325,448 $ $ $ 21,315,301 $ 220,340 Changes in long-term liabilities Long-term liability activity for the year was as follows _L22,179 _L_759 ,684$ _L1.4. 363 _L11.4.56 _L_238 ,209 Long-term portion _LZ2_518 43 Beginning Ending Due within Balance Additions Reductions Balance one year Governmental activities Compensated absences $ 384,801 $ 547,640 $ 503,135 $ 429,306 $ 85,861 $ 801_6 $ 503,135 _L___429 306 $ 85,861 Long-term portion _J__343 ,445 Beginning Ending Due within Balance Additions Reductions Balance one year Business -type activities Bonds payable $ 1,010,000 $ - $ 130,000 $ 880,000 $ 135,000 Notes payable 21,035,421 567,120 1,166,932 20,435,609 774,934 Compensated absences 134,240 192,564 185,431 141,373 28,275 _L22,179 _L_759 ,684$ _L1.4. 363 _L11.4.56 _L_238 ,209 Long-term portion _LZ2_518 43 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 15) NOTE 11- Conduit Debt Obliaations 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 parry 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 12- Stewardship. Compliance and Accountability A. Deficit Fund Balance At September 30, 2020, the City had a deficit fund balance in the amount of $2,953,129 in the Highway, Streets, and Roads fund. The future revenues and reduction of an interfund loan will decrease the deficit fund balance. NOTE 13- 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, 2020 it was 7.16% for general employees and 8.81% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94% general employees and 12.28% for police and firefighters. The City's contributions were $697,831 for the year ended September 30, 2020. 44 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 15) NOTE 13 - Pension Plan (Continued) Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30,2020, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, 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, 2020, the City's proportion was .1641301 percent. For the year ended September 30, 2020, the City recognized pension expense (revenue) of $1,380,289. At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources $164,282 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, 2020. 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, 2019 the beginning of the measurement period ended June 30, 2019 is 4.8 and 4.8 for the measurement period June 30, 2020. 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, 2020: 2021 Deferred Deferred 160,548 Outflows of Inflows of 2024 Resources Resources Differences between expected and actual experience $ 297,781 $ 124,448 Changes in assumptions or other inputs 64,456 - 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 409,346 (27,504) City contributions subsequent to the measurement date 164,282 - $ 935,865 $ 96,944 $164,282 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, 2020. 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, 2019 the beginning of the measurement period ended June 30, 2019 is 4.8 and 4.8 for the measurement period June 30, 2020. 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, 2020: 2021 $ 12,309 2022 160,548 2023 217,902 2024 283,881 2025 - Actuarial Assumptions: 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, 2020 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Salary increases 3.75% Salary inflation 3.75% Investment rate of return 7.05%, net of investment expenses Cost -of -living adjustments 1% W CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 15) NOTE 13 - Pension Plan (Continued) Actuarial Assumptions: (continued) Mortality rates were based on the RP — 2000 combined table for healthy males or females as appropriate with the following offsets: • Set back 3 years for teachers • No offset for male fire and police • Forward one year for female fire and police • Set back one year for all general employees and all beneficiaries An experience study was performed for the period July 1, 2013 through June 30, 2017 which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2020 is based on the results of an actuarial valuation date July 1,2020. 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. 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 2020. Long -Term Long -Term Expected Expected Target Nominal Rate Real Rate of Asset Class Allocation of Return Return Core Fixed Income Broad US Equities Developed Foreign Equities Assumed Inflation - Mean Assumed Inflation - Standard Deviation Portfolio Arithmetic Mean Return Portfolio Standard Deviation Portfolio Long -Term (Geometric) Expected Real Rate of Return Assumed Investment Expenses Portfolio Long -Term (Geometric) Expected Real Rate of Return, Net of Investment Expenses Portfolio Long -Term Expected Real Rate of Return, Net of Investment Expenses Portfolio Standard Deviation Valuation Assumptions Chosen by PERSI Board Long -Term Expected Real Rate of Return, Net of Investment Expenses Assumed Inflation Long -Term Expected Geometric Rate of Return, Net of Investment Expenses Discount Rate: 30.00% 2.80% 0.55% 55.00% 8.55% 6.30% 15.00% 8.70% 6.45% 2.25% 2.25% 1.50% 1.50% 6.85% 4.60% 12.33% 12.33% 6.25% 3.89% 0.40% 0.40% 5.85% 3.49% 4.19% 14.16% 4.05% 3.00% 7.05% The discount rate used to measure the total pension liability was 7.05%. 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. 46 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 15) NOTE 13 - Pension Plan (Continued) 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 7.05 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 (6.05 percent) or 1 -percentage -point higher (8.05 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.05°/x) (7.05%) (8.05%) Employer's proportionate share of the net pension liability (asset) $ 7,815,969 $ 3,811,318 $ 500,124 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, 2020, the City reported payables to the defined benefit pension plan of $26,853 for legally required employer contributions and $17,960 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE 14 - Risk Manaaement 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 stop loss of $1,000,000 for 2020. Coverage from a private insurance company is maintained for losses in excess of the aggregate stop loss amount. 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. The estimated liability does not include any allocated or unallocated claims adjustment expense. 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 prior and current year claims. The claims liability of $89,213 reported as accounts payable and accruals 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 15 - Subsequent Events Subsequent events were evaluated up to March 27, 2021, the date the financial statements were available to be issued. 47 REQUIRED SUPPLEMENTARY INFORMATION EN CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED SEPTEMBER 30, 2020 Resources General property taxes and sales tax Franchise fees State sales and liquor taxes Parks revenue Licenses, permits and fines Grants Fire protection and prevention Leases and rents Interest income Donations Charges for services Other resources Amounts available for appropriations Charges to appropriations General government Law enforcement Fire control Building inspection Parks and recreation Health and welfare Capital outlays Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from certificate of participation Proceeds from sale of assets NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts 76,139 Variance 3,345 - - 79,484 Actual Positive Original Final Amounts (Negative) $ 2,363,778 $ 5,869,579 $ 5,869,579 $ 6,277,503 $ 407,924 208,680 208,680 186,818 (21,862) 614,000 614,000 426,840 (187,160) 13,750 13,750 2,409 (11,341) 240,761 240,761 220,174 (20,587) 30,000 30,000 335,950 305,950 7,000 7,000 61,832 54,832 91,500 91,500 122,070 30,570 257,252 257,252 147,603 (109,649) - - 5,153 5,153 55,000 55,000 3,716 (51,284) 28,000 28,000 9,625 (18,375) 7,415,522 7,415,522 7,799,693 384,171 706,493 706,493 1,303,835 (597,342) 3,951,099 3,951,099 3,507,675 443,424 1,771,000 1,771,000 1,652,703 118,297 238,130 238,130 8,913 229,217 677,000 677,000 509,997 167,003 71,800 71,800 88,129 (16,329) - - 804,412 (804,412) 7,415,522 7,415,522 7,875,664 (460,142) (75,971) (75,971) - - 76,139 76,139 - - 3,345 3,345 - - 79,484 79,484 - - 3,513 3,513 - - 2,360,265 2,360,265 $ - $ - $ 2,363,778 $ 2,363,778 49 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2020 Resources Property taxes Highway user's revenue Grant revenue Road and bridge Other revenues Amounts available for appropriations Charges to appropriations Salaries and personnel benefits Supplies Utilities Building maintenance Professional services Street signing and marking Street construction and maintenance Equipment maintenance Capital outlays Miscellaneous expenses Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from certificate of participation Interest expense Proceeds from sale of assets NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Original Final $ 900,000 $ 900,000 725,000 725,000 125,000 125,000 77,000 77,000 1,827,000 1,827,000 647,500 647,500 7,500 7,500 9,250 9,250 5,000 5,000 12,500 12,500 143,250 143,250 658,500 658,500 158,000 158,000 160,500 160,500 25,000 25,000 1,827,000 1,827,000 Variance Actual Positive Amounts (Negative) $ 853,514 $ (46,486) 718,902 (6,098) 250,000 250,000 69,460 (55,540) 21,703 (55,297) 1,913,579 86,579 722,742 (75,242) 16,538 (9,038) 9,230 20 4,388 612 12,000 500 142,579 671 652,850 5,650 140,652 17,348 966,939 (806,439) 21,698 3,302 2,689,616 (862,616) (776,037) (776,037) 76,139 76,139 (3,737) (3,737) 3,000 3,000 75,402 75,402 (700,635) (700,635) (2,252,494) (2,252,494) $ - - $(2,953,129) $(2,953,129) 50 Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years* 2020 2019 2018 2017 2016 2015 Employer's portion of the net pension liability 0.001641301 0.001625296 0.001606905 0.001542148 0.00145924 0.001459012 Employer's proportionate share of the net pension liability $ 3,811,318 $ 1,855,230 $ 2,370,213 $ 2,423,992 $ 2,958,104 $ 1,921,281 Employer's covered -employee payroll $ 5,820,108 $ 5,496,835 $ 5,142,733 $ 4,764,551 $ 4,225,127 $ 4,072,262 Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll 65.49% 33.75% 46.09% 50.88% 70.01% Plan fiduciary net position as a percentage of the total pension liability 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. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available Data reported is measured as of June 30, 2020 51 47.18% 91.38% Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years 2020 2019 2018 2017 2016 2015 Statutorily required contribution $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contributions in relation to the statutorily required contribution $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contribution (deficiency) excess $ - $ - $ - $ - $ - $ - Employer's covered -employee payroll $ 6,009,444 $ 5,597,869 $ 5,318,395 $ 4,568,504 $ 4,536,572 $ 4,225,217 Contributions as a percentage of covered -employee payroll 11.80% 11.49% 11.17% 11.94% 11.11% 11.10% * GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. Data is reported as a measurement of September 30, 2020. 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 GENERAL FUND General government The City had expenditures in excess of budget of $597,342 in the general government due to an increase of general maintenance expenditures, COVID adaptation, and expansion. The City did receive $335,950 in grants and used available fund balances to cover the expenditures over budget. Health & Welfare The City had expenditures in excess of budget of $16,329 due to an increase in services provided. The City used available fund balances to cover the expenditures over budget. Capital Outlays The City had expenditures in excess of budget of $804,412 due to an increase in equipment expenditures. The City used available fund balances to cover the expenditures over budget. Highway. Streets. and Roads The City had expenditures in excess of budget of $862,616 due to an increase of personnel, supplies, and capital outlays. The future revenues and reduction of an interfund loan will offset the expenditures over budget. 53 OTHER SUPPLEMENTARY INFORMATION CITY OF CHUBBUCK, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2020 55 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 ASSETS Cash $ 47,566 $ 43,268 $ 13,860 $ 127,382 $ 5,100 $ 99,026 $ 169,125 $ 405,176 $ 910,503 FUND BALANCES Committed, reported in: Special revenue fund $ 47,566 $ 43,268 $ 13,860 $ 127,382 $ 5,100 $ 99,026 $ 169,125 $ 405,176 $ 910,503 55 CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 56 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 REVENUES Interest income $ 48 $ 46 $ 36 $ 136 $ 16 $ 274 $ 521 $ 1,113 $ 2,190 Donations - - - - - - - 61,794 61,794 Other revenues 35,019 30,834 400 141,658 - 13,747 - 9,129 230,787 35,067 30,880 436 141,794 16 14,021 521 72,036 294,771 EXPENDITURES Other purchased services - - - 25,481 2,500 - 15,200 43,181 - - - 25,481 - 2,500 - 15,200 43,181 NET CHANGE IN FUND BALANCES 35,067 30,880 436 116,313 16 11,521 521 56,836 251,590 BEGINNING FUND BALANCE 12,499 12,388 13,424 11,069 5,084 87,505 168,604 348,340 658,913 ENDING FUND BALANCE $ 47,566 $ 43,268 $ 13,860 $ 127,382 $ 5,100 $ 99,026 $ 169,125 $ 405,176 $ 910,503 56 57 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2019 Employee Central Health Garage Benefit 2020 2019 Fund Fund Totals Totals ASSETS Current assets Cash and cash equivalents $ - $ 345,742 $ 345,742 $ 629,622 - 345,742 345,742 629,622 Noncurrent assets Restricted assets Capital assets 261,085 - 261,085 261,085 Accumulated depreciation (253,574) - (253,574) (251,805) 7,511 - 7,511 9,280 7,511 345,742 353,253 638,902 LIABILITIES Current Liabilities Accounts payable 21,403 - 21,403 2,355 21,403 - 21,403 2,355 Noncurrent Liabilities 21,403 - 21,403 2,355 NET POSITION Net investment in capital assets 7,511 - 7,511 9,280 Unrestricted (21,403) 345,742 324,339 627,267 $ (13,892) $ 345,742 $ 331,850 $ 636,547 57 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2019 OPERATING EXPENSES Administration Employee 285,277 285,277 Central Health 5,322 - Garage Benefit 2020 2019 Fund Fund Totals Totals OPERATING REVENUES - 28,435 4,668 Interest earnings $ - $ 1,397 $ 1,397 $ 3,117 Service revenue 78,709 - 78,709 73,931 78,709 1,397 80,106 77,048 OPERATING EXPENSES Administration - 285,277 285,277 - Personnel benefits 5,322 - 5,322 5,600 Repairs and maintenance 20,420 - 20,420 12,411 Supplies and tools 28,435 - 28,435 4,668 Travel, meetings, and training 2,676 - 2,676 4,240 Fuels and lubricants 30,219 - 30,219 33,352 Utilities 10,685 - 10,685 12,936 Depreciation 1,769 - 1,769 2,572 99,526 285,277 384,803 75,779 OPERATING INCOME (LOSS) (20,817) (283,880) (304,697) 1,269 CHANGES IN NET POSITION (20,817) (283,880) (304,697) 1,269 BEGINNING NET POSITION 6,925 629,622 636,547 635,278 ENDING NET POSITION $ (13,892) $ 345,742 $ 331,850 $ 636,547 4.4 CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2020 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2019 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 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: Employee Central Health Garage Benefit Fund Fund 2020 2019 $ 78,709 $ 1,397 $ 80,106 $ 77,048 (73,387) (285,277) (358,664) (68,331) (5,322) - (5,322) (5,600) - (283,880) (283,880) 3,117 - (283,880) (283,880) 3,117 - 629,622 629,622 626,505 $ - $ 345,742 $ 345,742 $ 629,622 Cash and cash equivalents $ - $ 345,742 $ 345,742 $ 629,622 Cash and cash equivalents - Restricted - - - - $ - $ 345,742 $ 345,742 $ 629,622 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation Increase (decrease) in liabilities Accounts payable Total adjustments NET CASH PROVIDED BY OPERATING ACTIVITIES 061 Employee Central Health Garage Benefit Fund Fund 2020 2019 $(20,817) $(283,880) $(304,697) $ 1,269 1,769 - 1,769 2,572 19,048 - 19,048 (724) 20,817 - 20,817 1,848 $ - $(283,880) $(283,880) $ 3,117 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources General property taxes and sales tax $ 18,600 $ 18,600 $ - $ (18,600) Interest income 8,300 8,300 2,190 (6,110) Donations 80,000 80,000 61,794 (18,206) Other resources 40,000 40,000 230,787 190,787 Amounts available for appropriations 146,900 146,900 294,771 147,871 Charges to appropriations Street guarantee fund 19,100 19,100 25,481 (6,381) Juvenile referral fund 500 500 - 500 Court fund 42,100 42,100 2,500 39,600 Road projects fund 1,200 1,200 - 1,200 Parks fund 84,000 84,000 15,200 68,800 Total charges to appropriations 146,900 146,900 43,181 103,719 NET CHANGE IN FUND BALANCE - - 251,590 251,590 BEGINNING FUND BALANCE - - 658,913 658,913 ENDING FUND BALANCE $ - $ - $ 910,503 $ 910,503 W 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 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Governmental activities: Invested in capital assets, net of related debt $ 5,082,171 $ 7,706,251 $ 10,153,123 $ 11,396,599 $ 10,137,975 $ 11,138,839 $ 16,829,117 $ 24,019,218 $ 26,473,293 $ 28,622,260 Restricted - - - - - - - - - - Unrestricted 2,451,180 2,896,706 3,592,593 4,130,936 4,532,072 6,181,447 3,212,484 547,753 (381,048) (1,695,666) Total governmental activities net position 7,533,351 10,602,957 13,745,716 15,527,535 14,670,047 17,320,286 20,041,601 24,566,971 26,092,245 26,926,594 Business -type activities Invested in capital assets, net of related debt 2,260,822 4,402,647 5,460,743 6,091,493 6,086,514 6,814,991 9,217,942 11,612,979 11,876,681 16,363,939 Restricted 237,981 169,081 165,781 167,481 165,181 166,731 168,131 164,850 166,100 167,200 Unrestricted 10,043,852 11,985,356 14,006,605 16,145,285 18,460,974 21,272,113 22,001,056 21,704,355 25,076,744 24,496,821 Total business -type activities net position 12,542,655 16,557,084 19,633,129 22,404,259 24,712,669 28,253,835 31,387,129 33,482,184 37,119,525 41,027,960 Primary government Net investment in capital assets 7,342,993 12,108,898 $ 15,613,866 $ 17,488,092 $ 16,224,489 $ 17,953,830 $ 26,047,059 $ 35,632,197 38,349,974 44,986,199 Restricted 237,981 169,081 165,781 167,481 165,181 166,731 168,131 164,850 166,100 167,200 Unrestricted 12,495,032 14,882,062 17,599,198 20,276,221 22,993,046 27,453,560 25,213,540 22,252,108 24,695,696 22,801,155 Total primary government net position $ 20,076,006 $ 27,160,041 $ 33,378,845 $ 37,931,794 $ 39,382,716 $ 45,574,121 $ 51,428,730 $ 58,049,155 $ 63,211,770 $ 67,954,554 63 64 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2011 2013 2014 2012 2015 2016 2017 2018 2019 2020 Expenses Governmental activities: General Government $ 229,616 $ 235,127 $ 352,910 $ 443,813 $ 542,494 $ 896,297 $ 880,217 $ 862,299 $ 836,698 $ 1,537,463 Law enforcement 2,714,226 2,576,916 2,782,655 2,771,003 2,868,345 3,188,507 3,310,717 3,447,266 3,492,557 3,896,661 Fire Control 1,170,902 1,307,735 1,313,575 1,335,240 1,519,108 1,360,246 1,307,106 1,417,951 1,556,572 1,939,749 Building Inspection 165,214 158,409 163,631 172,439 172,946 199,277 199,336 217,171 246,220 28,004 Street 831,182 1,087,455 1,122,746 1,450,965 1,524,819 1,487,702 1,426,385 1,293,629 1,210,550 2,042,497 Parks & Recreation 544,793 534,574 494,692 484,041 529,372 591,638 601,054 653,878 623,328 636,713 Health and welfare 44,487 31,462 39,552 51,165 41,171 76,884 83,293 90,621 80,049 88,129 Other special funds 857 17,113 5,150 350 - 20,196 150 1,600 17,100 43,181 CIAWWC Authority - - 4,574 2,930 2,930 609,036 609,036 - - - Total governmental activities expenses 5,701,277 5,948,791 6,279,485 6,711,946 7,201,185 8,429,783 8,417,294 7,984,416 8,063,075 10,212,397 Business -type activities: Water 1,355,305 1,398,887 1,466,297 1,560,406 1,781,501 1,793,535 1,726,443 2,111,162 2,028,807 2,440,008 Sewer 1,669,178 1,847,034 2,072,020 1,709,310 2,200,476 2,319,135 2,363,009 2,649,245 2,705,251 3,174,444 Sanitation 1,174, 725 1,132,300 1,116,071 1,219,283 1,060,218 1,221,934 1,637,470 1,732,030 1,626,740 1,916,682 CIAWWC Authority - - - - - - - 609,036 609,036 609,063 Total business -type activities program expenses 4,199,208 4,378,221 4,654,388 4,488,999 5,042,195 5,334,604 5,726,922 7,101,473 6,969,834 8,140,197 Total primary government program expenses 9,900,485 10,327,012 10,933,873 11,200,945 12,243,380 13,764,387 14,144,216 15,085,889 15,032,909 18,352,594 64 65 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Program Revenues Governmental activities: Charges for services: General Government 237,249 133,808 203,578 134,555 298,505 365,049 414,674 323,186 399,415 342,244 Law enforcement - - - - 35,311 28,918 31,942 29,940 34,221 28,081 Fire control 180,020 210,650 191,317 232,992 197,261 211,041 214,172 237,675 176,925 61,832 Street - - - - - - - 13,165 17,468 1,292 Parks & Recreation 70,900 6,534 4,955 7,203 9,762 10,589 12,728 149,681 14,758 6,125 CIAWWC Authority - - - - - - 10,980 - - - Operating grants and contributions 64,685 43,612 128,818 33,200 48,000 43,890 71,329 84,653 179,095 652,897 Capital grants and contributions - - - - 916,767 2,667,268 2,354,109 3,644,635 1,019,354 1,253,033 Total governmental activities program revenues 552,854 394,604 528,668 407,950 1,505,606 3,326,755 3,109,934 4,482,935 1,841,236 2,345,504 Business -type activities: Charges for services: Water 2,204,728 2,386,464 2,582,932 2,422,542 2,680,920 2,783,945 2,728,684 2,896,320 2,983,977 2,944,986 Sewer 2,863,260 3,228,353 3,182,335 3,093,116 3,583,861 3,657,738 3,803,714 3,979,134 4,229,957 4,163,168 Sanitation 1,644,935 1,625,302 1,649,604 1,727,680 1,731,740 2,169,627 2,192,420 1,978,239 1,930,472 1,952,196 CIAWWC Authority - - - - - - 66,915 21,960 95,330 Operating grants and contributions 11,328 134,662 93,730 - - Capital grants and contributions - - 228,000 1,045,754 2,785,144 Total business -type activities program revenues 6,712,923 7,240,119 7,414,871 7,243,338 8,007,849 8,611,310 8,859,480 9,242,338 10,212,120 11,940,824 Total primary government program revenues 7,265,777 7,634,723 7,943,539 7,651,288 9,513,455 11,938,065 11,969,414 13,725,273 12,053,356 14,286,328 Net(Expense)/Revenue Governmental activities (5,148,423) (5,554,187) (5,750,817) (6,303,996) (5,695,579) (5,103,028) (5,307,360) (3,501,480) (6,221,839) (7,866,893) Business -type activities 2,513,715 2,861,898 2,760,483 2,754,339 2,965,654 3,276,706 3,132,558 2,140,865 3,242,286 3,800,627 Total primary governmental net (expense)/revenue (2,634,708) (2,692,289) (2,990,334) (3,549,657) (2,729,925) (1,826,322) (2,174,802) (1,360,615) (2,979,553) (4,066,266) 65 General Revenues and other Changes in Net Position Governmental activities: General Property taxes and sales tax Franchise fees Intergovernmental Leases and rents Interest income Proceeds from sale of assets Gain on sale of assets Capital contributions Other revenue Transfers in (out) CIAWWC Authority Total governmental activities Business -type activities: Interest income Capital contributions Gain on sale of assets Transfers in (out) Total business -type activities Total primary government Changes in Net Position Governmental Activities Business -type activities Total primary government 66 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 4,441,858 4,594,553 4,982,426 5,292,450 5,296,480 5,366,613 5,642,004 5,975,483 6,499,369 7,123,630 179,839 201,128 192,151 203,790 198,493 199,194 201,328 203,950 189,494 186,818 797,354 908,227 955,679 903,149 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 50,644 52,546 90,843 66,152 - - - - - - 30,738 36,797 60,367 60,651 76,828 90,432 98,064 157,760 182,445 160,617 - - - 11,154 - - - - - - 16,242 17,223 34,788 - 18,038 19,282 54,759 78 6,345 217,034 2,683,248 2,254,771 1,286,887 - - - - - - 35,491 18,486 89,066 14,366 41,828 766,042 763,697 199,888 186,953 36,711 - - - (3,000) - - - - (534,080) - - - 228,000 228,000 - - - - - - 5,769,200 8,512,208 8,888,091 8,063,599 6,653,333 7,753,267 8,028,674 7,965,788 7,927,865 8,701,242 22,849 32,121 644 574 - - - 4,000 106,283 105,808 - 1,125,220 261,081 13,217 - - - - - - 10,800 2,400 - 2,530 86,100 736 11,252 - 2,000 - - 3,000 100 - - - 534,080 - 22,849 1,168,141 264,125 16,791 2,630 86,100 736 15,252 640,363 107,808 5,792,049 9,680,349 9,152,216 8,080,390 6,655,963 7,839,367 8,029,410 7,981,040 8,568,228 8,809,050 620,777 2,958,021 3,137,274 1,759,603 957,754 2,650,239 2,721,314 4,464,308 1,706,026 834,349 2,536,564 4,030,039 3,024,608 2,771,130 2,968,284 3,362,806 3,133,294 2,156,117 3,882,649 3,908,435 $ 3,157,341 $ 6,988,060 $ 6,161,882 $ 4,530,733 $ 3,926,038 $ 6,013,045 $ 5,854,608 $ 6,620,425 $ 5,588,675 $ 4,742,784 66 City of Chubbuck Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 67 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 General fund Unassigned $ 1,884,064 $ 2,348,830 $ 2,708,737 $ 2,933,821 $ 2,952,093 $ 3,410,321 $ 3,939,114 $ 1,239,050 $ 107,771 $ (589,351) Total General Fund 1,884,064 2,348,830 2,708,737 2,933,821 2,952,093 3,410,321 3,939,114 1,239,050 107,771 (589,351) All Other Governmental Funds Committed 629,440 632,837 490,894 511,696 554,175 565,911 453,040 516,555 658,913 910,503 Unassigned: Special revenue funds - - - - - - - - - - Total all other governmental funds $ 629,440 $ 632,837 $ 490,894 $ 511,696 $ 554,175 $ 565,911 $ 453,040 $ 516,555 $ 658,913 $ 910,503 67 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 68 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Revenues: Property taxes and sales tax $ 4,435,834 $ 4,567,959 $ 4,984,949 $ 5,295,493 $ 5,349,772 $ 5,375,566 $ 5,627,360 $ 5,930,753 $ 6,405,974 $ 7,131,017 Franchise fees 179,839 201,128 192,151 203,790 198,493 199,194 201,328 203,950 189,494 186,818 Intergovernmental 797,354 908,227 955,679 903,149 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 Court Revenue - - - - 35,311 28,918 31,942 29,940 34,221 28,081 Parks revenue 1,977 2,399 1,720 2,668 5,402 7,629 10,733 7,729 8,670 2,409 License, permits and fines 237,249 133,808 203,578 134,555 219,868 289,199 320,860 231,180 308,615 220,174 Grants 58,465 27,892 302,500 14,800 466,000 248,290 336,433 43,629 109,076 585,950 Fire protection and prevention 180,020 210,650 191,317 232,992 197,261 211,041 214,172 237,675 176,925 61,832 Leases and rents 50,644 52,546 90,843 66,152 78,637 75,850 93,814 92,006 90,800 122,070 Interest income 30,738 36,797 60,367 60,651 76,828 90,432 98,064 157,760 182,445 160,617 Donations 6,220 15,720 54,318 18,400 38,000 23,600 40,149 41,024 70,019 66,947 Charges for services 68,923 4,135 3,235 4,535 4,360 2,960 12,975 155,117 23,556 5,008 Other revenues 35,491 18,486 89,066 14,366 41,827 19,063 65,897 86,449 184,022 249,999 Total Revenues 6,082,754 6,179,747 7,129,723 6,951,551 7,733,425 7,883,446 8,377,308 8,591,160 9,187,423 10,008,043 68 Expenditures: General government Law enforcement Fire control Building inspection Street Parks and recreation Health and welfare Street guarantee fund Court fund Parks fund Capital outlays CIAWWC Authority Total Expenditures Excess (deficiency) of Revenues over (under) Expenditures 69 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 186,863 214,382 326,399 393,539 483,135 574,204 496,074 580,806 621,568 1,303,835 2,616,515 2,494,222 2,669,035 2,695,807 2,843,478 2,960,661 3,062,347 3,287,172 3,354,522 3,507,675 1,127,747 1,174,659 1,211,430 1,234,101 1,431,180 1,213,866 1,181,308 1,300,583 1,463,484 1,652,703 165,214 158,409 163,631 172,439 174,432 181,199 186,059 212,747 244,749 8,913 788,356 1,035,804 1,054,574 1,356,339 1,365,190 1,336,127 1,270,359 1,136,919 1,054,240 1,722,677 498,355 488,874 437,882 442,246 498,932 513,091 502,709 552,176 530,705 509,997 44,487 31,462 39,552 51,165 41,171 76,884 83,293 90,621 80,049 88,129 - - 5,000 - - - - - - - 857 2,780 150 350 1,500 150 1,600 - - - 14,333 - - - 18,696 - - 17,100 43,181 58,690 225,467 968,502 365,442 409,060 333,207 953,944 4,160,478 2,806,886 1,771,351 4,574 2,930 458,930 230,930 2,930 - - - 5,487,084 5,840,392 6,880,729 6,714,358 7,705,508 7,440,365 7,739,173 11,323,102 10,173,303 10,608,461 595,670 339,355 248,994 237,193 27,917 443,081 638,135 (2,731,942) (985,880) (600,418) 69 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 70 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 Other financing sources (uses): Proceeds from note payable - - 175,281 155,468 11,680 2,930 - - - - Principal payments on leases (43,139) - - - - Principal payments (249,263) (154,929) (236,050) Proceeds from certificate of participation - - - - - - - - - 152,278 Interest expense (3,064) - (5,330) - - - - (4,000) (3,869) (3,737) Proceeds from sale of assets 16,242 17,223 42,796 11,154 21,153 23,953 13,837 99,393 828 6,345 Transfers in (out) - - - (3,000) - - - - - - Total other financing sources (uses) (29,961) 17,223 (36,516) 8,693 32,833 26,883 (222,213) 95,393 (3,041) 154,886 Net Change in Fund Balances 565,709 356,578 212,478 245,886 60,750 469,964 415,922 (2,636,549) (988,921) (445,532) Beginning Fund Balances 1,947,795 2,625,090 2,987,153 3,199,632 3,445,518 3,506,268 3,976,232 4,392,154 1,755,605 766,684 Prior Period Adjustment 111,586 - - - - - - - - - Ending Fund Balances $ 2,625,090 $ 2,981,668 $ 3,199,632 $ 3,445,518 $ 3,506,268 $ 3,976,232 $ 4,392,154 $ 1,755,605 $ 766,684 $ 321,152 70 City of Chubbuck General Government Tax and Intergovernmental Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) 71 Local Tax Revenues Intergovernmental Revenues Local Taxes Highway Total as a Streets & Total Local State Liquor Highway User's Court Road & Shared Sales Intergovernmental Percentage of Fiscal Year Property Tax Franchise Tax Road Sales Tax Taxes Tax Revenue Revenue Bridge Tax Taxes Total Taxes Total 2011 4,048,626 180,589 - 373,619 4,602,834 136,058 421,162 46,523 62,263 130,922 796,928 5,399,762 85% 2012 4,118,011 201,128 - 449,949 4,769,088 149,070 451,302 41,915 59,652 206,288 908,227 5,677,315 84% 2013 4,497,017 192,152 - 487,932 5,177,101 154,777 463,463 38,277 72,887 226,276 955,680 6,132,781 849/ 2014 4,781,207 203,790 114,496 514,286 5,623,276 152,877 467,297 30,815 66,326 185,833 903,148 6,526,424 86% 2015 4,813,441 198,493 - 536,331 5,548,265 148,641 494,812 35,312 112,443 265,770 1,056,978 6,605,243 849/. 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% 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 Property Total Assessed Actual Value Levy Rate Tax Rate Per $1,000 Value 2011 436,089,131 7,435,674 302,838 230,651,324 674,478,967 0.009150122 $ 9.15 2012 446,262,451 7,358,180 488,182 225,397,223 - 679,506,036 0.009324266 $ 9.32 2013 454,554,481 7,573,803 513,109 203,675,558 638,203 666,955,154 0.009969299 $ 9.97 2014 459,147,628 7,502,193 1,138,795 236,839,910 - 704,628,526 0.009967676 $ 9.97 2015 461,440,210 7,884,559 1,017,251 238,171,372 81,774 708,595,166 0.009933799 $ 9.93 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 Source: Bannock County Clerks Office Note: Twenty percent of the property in the county is reassessed annually. The County assesses property at 100916 of market value. Tax rates are per $1,000 of assessed value. 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 City of Chubbuck Overlapping Rates County Road 8, Ambulance Service School District 25 Combined Levy lel. City Rates Base Rates Bannock County Rates Bridge Rates Abatement Rates Portneuf Library Rates Rates Rates Rates 2011 0.009150122 9.15 5.28 0.43 0.15 0.57 0.25 3.86 19.70 2012 0.009324266 9.32 4.82 0.41 0.13 0.61 0.24 3.90 19.43 2013 0.009969299 9.97 4.92 0.47 0.0S 0.61 0.40 4.49 20.91 2014 0.009967676 9.97 5.30 0.48 0.05 0.57 0.40 4.14 20.91 2015 0.009933799 9.93 5.28 0.85 0.04 0.58 0.40 4.42 21.50 2016 0.010140122 10.14 S.24 0.73 0.03 0.61 0.40 3.94 21.09 2017 0.010188661 10.19 5.37 0.67 0.03 0.58 0.40 3.88 21.12 2018 0.010636971 10.64 5.62 0.47 0.03 0.61 0.40 3.85 21.62 2019 0.009459658 9.46 4.85 0.53 0.03 0.52 0.35 3.33 19.06 2020 0.006863105 6.86 3.68 0.50 0.03 0.53 0.34 3.19 15.13 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 Taxpayer Type of Business IDAHO CENTRAL CREDIT UNION FINANCIAL INSTITUTE PINE RIDGE MALL JC LLC RETAIL 4200 HAWTHORNE LLC REAL ESTATE HOLDINGS WAL MART REAL ESTATE RETAIL SHJH LLC APARTMENTS AGREE LIMITED PARTNERSHIP REAL ESTATE INVESTMENTS CARMIKE CINEMAS INC. ENTERTAINMENT HD DEVELOPMENT OF MARYLAND INC REAL ESTATE DEVELOPMENT IDAHO POWER COMPANY UTILITIES TEKLE, HAILE 15,307,395 SHOPKO SPE REAL ESTATE LLC RETAIL FNLALL LLC 2 EMERITOL RIDGE WIND LLC DATABASE SEARS ROEBUCK AND CO. RETAIL PINE RIDGE IDAHO LLC REAL ESTATE HOLDINGS 1.29% Total Top Ten *Estimated Assessment Values Source: Bannock County Assessors Office City of Chubbuck Principal Taxpayers September 30, 2020 2020 I I 2011 $ 126,633,000 11.68% $ 72,416,730 74 10.74% Percentage of Assessed Total Assessed Percentage of Total Valuation Rank Valuation * Assessed Valuation Rank Assessed Valuation 46,186,000 1 4.26% 15,307,395 1 2.27% 14,425,000 2 1.33% 12,379,515 2 1.84% 13,963,000 3 1.29% - 0.00% 10,158,000 4 0.94% 9,709,957 3 1.44% 9,683,000 5 0.89% - 0.00% 8,383,000 6 0.77% - 0.00% 7,601,000 7 0.70% 6,062,766 5 0.90% 5,998,000 8 0.55% 7,105,536 4 1.05% 5,309,000 9 0.49% - 0.00% 4,927,000 10 0.45% - 0.00% - 0.00% 5,204,568 6 0.77% 0.00% 4,884,831 7 0.72% 0.00% 4,244,700 8 0.63% 0.00% 3,832,514 9 0.57% 0.00% 3,684,948 10 0.55% $ 126,633,000 11.68% $ 72,416,730 74 10.74% City of Chubbuck Ratios of Outstanding Debt by Type Last Ten Fiscal Years (accrual basis of accounting) Note: The estimated populations for years 2009, 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 Sanitation Water Notes Sewer Note Total Primary Estimated Per Year Capital Lease Notes Sewer Bond Water Bond DEQ DEQ Government Population Capita 2011 1,953,409 65,000 1,995,000 283,370 16,952,087 21,248,866 14,067 1,511 2012 - 1,382,774 - 1,830,000 267,790 17,665,819 21,146,383 14,067 1,503 2013 27,739 1,265,080 1,720,000 251,448 16,873,075 20,137,342 14,125 1,426 2014 - 1,130,594 1,610,000 234,833 16,436,562 19,411,989 14,125 1,374 2015 1,076,827 1,495,000 217,757 16,363,232 19,152,816 14,229 1,346 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 16,268 1,310 Note: The estimated populations for years 2009, 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) (1) Total revenues ( including interest) (2) Total operating expenses exclusive of deprecation. (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 al Pledge of Net Revenue Revenues Available for Debt Coverage Fiscal Year Gross Revenue (1) Operating Expense (2) Service Principal Interest Total Coverage Requirement (4) 2011 2,219,014 1,229,611 989,403 100,000 24,663 124,663 7.94 6.35 2012 2,411,854 1,222,469 1,189,385 110,000 60,068 170,068 6.99 5.59 2013 2,583,576 1,263,607 1,319,969 110,000 58,338 168,338 7.84 6.27 2014 2,423,116 1,351,349 1,071,767 115,000 56,574 171,574 6.25 5.00 2015 2,680,920 1,532,822 1,148,098 115,000 52,863 167,863 6.84 5.47 2016 2,783,945 1,535,492 1,248,453 120,000 55,514 175,514 7.11 5.69 2017 2,728,684 1,472,240 1,256,444 125,000 45,443 170,443 7.37 5.90 2018 2,896,320 1,832,479 1,063,841 125,000 34,175 159,175 6.68 5.35 2019 2,983,977 1,744,722 1,239,255 130,000 32,182 162,182 7.64 6.11 2020 2,944,986 1,959,268 985,718 135,000 28,420 163,420 6.03 4.83 (1) Total revenues ( including interest) (2) Total operating expenses exclusive of deprecation. (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 al City of Chubbuck Statistical Information Water Fund September 30, 2020 Schedule of Water Revenue and Production For Residential, Commercial, and Government Accounts Total Revenue $ 2,944,986 Estimated number of active customers 4,556 Total water produced (gallons) 814,231 Schedule of Water Rates Monthly Base Fee (by meter size) Size Price Circuit Breaker 1" or less $ 24.00 $ 16.80 1.5 " 69.10 2" 106.95 3" 222.45 4" 364.60 6" 736.70 8" 1,153.75 10" 1,762.60 Volumetric charge: $1.15 per 1,000 gallons metered water. Volumetric charge for circuit breaker: $.80 per 1,000 gallons metered water. 77 CITY OF CHUBBUCK, IDAHO Ten Largest Water System Customers For The Fiscal Year Ended September 30, 2020 (per 1,000 gallon used) Total Usage 78 814,231 11.4% % of Total Water Top Ten % of Total Customer Business Type Usage Consumers Usage Pine Ridge Mall JC LLC Shopping Center 40,243 43.5% 4.9% Circle Inn Trailer Park Mobile Home Park 9,609 10.4% 1.2% Idaho Central Credit Union Banking 9,398 10.2% 1.2% Seven Synergy LLC Staffing Services 6,273 6.8% 0.8% Camelot Estate Mobile Home Park 5,669 6.1% 0.7% Meadows MHP Apartment Complex 4,437 4.8% 0.5% Auto Zone Parts Inc. Motel 4,300 4.6% 0.5% Pine Ridge Idaho LLC Apartment Complex 4,275 4.6% 0.5% Pheasant Ridge HOA Inc. Residential Development 4,200 4.5% 0.5% Pheasant Ridge HOA Inc. Residential Development 4,149 4.5% 0.5% Total Top Ten Consumers 92,553 100.0% Total Usage 78 814,231 11.4% City of Chubbuck Statistical Information Sewer Fund September 30, 2020 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue Schedule of Sewer Rates Monthly Base Fee Regular Residential $ 47.25 NWSI Residential 10.45 $ 4,163,168 Circuit Breaker $ 33.05 Commercial rate for businesses North of the Interstate is $6.67343 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $7.82343 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 SINGLE AUDIT SECTION .l CITY OF CHUBBUCK SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Fiscal Year Ended September 30, 2020 Federal Grantor/Pass-Through Grantor/Program Title CFDA Grant Number Expeditures Subrecipients U.S. Department of Transportation Highway Safety Cluster: Passed through the Idaho Transportation Department State and Community Highway Safety 20.600 SDD1901 990 National Priority Safety Programs Total U.S. Department of Transportation Highway Safety Cluster U.S. Department of the Treasury Coronavirus Relief Fund Total U.S. Department of the Treasury U.S. Department of Environmental Protection Agency Drinking Water State Revolving Fund Cluster: Passed through the State of Idaho Department of Environmental Quality Capitalization Grants for Drinking Water State Revolving Funds Total U.S. Department of Environmental Protection Agency Cluster Executive Office of the President: High Intensity Drug Trafficking Areas Program: Total Executive Office of the President Total Expenditures of Federal Awards 20.600 SPT2002 1,271 20.600 SPT2002 2,138 20.600 SOP20EB 3,968 20.616 SID19EC 3,123 20.616 SID20EA 1,770 20.616 SID20EB 1,386 20.616 SID20EC 1,357 21.019 20-1892-0-1-806 16,003 21.019 20-1892-0-1-806 20,928 21.019 20-1892-0-1-806 21,431 21.019 20-1892-0-1-806 133,756 21.019 20-1892-0-1-806 100,912 21.019 20-1892-0-1-806 12,612 21.019 20-1892-0-1-806 12,220 21.019 20-1892-0-1-806 15,423 21.019 20-1892-0-1-806 960 318,242 66.468 DW1602 439,688 439,688 95.001 G190R0004AONDCP 788 95.001 G190R0004AONDCP 897 81 See accompanying notes 1,685 775,618 CITY OF CHUBBUCK, IDAHO NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS NOTE 1. BASIS OF PRESENTATION The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal award activity of the City of Chubbuck (City) under programs of the federal government for the year ended September 30, 2020. The information in this Schedule is prepared in accordance with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position, changes in assets, or cash flows of the City. NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Expenditures reported on the Schedule are reported on the modified accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. NOTE 3. DE MINIMIS INDIRECT COST RATE The City has elected not to use the 10 -percent de minimis indirect cost rate allowed under the Uniform Guidance. The City has elected to use the Simplified Allocation Method for certain grants, as approved NOTE 4. SUBRECIPIENTS The City does not pass federal awards received from federal funding to other governments or not-for- profit agencies (subrecipients). NOTE 5. MATCHING REQUIREMENTS The federal funding received by the City does not require the City to contribute matching funds to support the federal funded programs. 82 Deaton & Company, Chartered Certified Public Accountants 215 North 9th, 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, 2020, 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 27, 2021. Internal Control Over Financial Reportina 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. 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 27, 2021 Deaton & Company, Chartered Certified Public Accountants tiff 215 North 9th, 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 AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Report on Compliance for Each Major Federal Program We have audited City of Chubbuck's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of City of Chubbuck's major federal programs for the year ended September 30, 2020. City of Chubbuck's major federal programs are identified in the summary of auditor's results section of the accompanying schedule of findings and questioned Management's Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of City of Chubbuck's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Chubbuck's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination of City of Chubbuck's compliance. Opinion on Each Major Federal Program In our opinion, City of Chubbuck, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2020. Report on Internal Control Over Compliance Management of City of Chubbuck, is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of Chubbuck's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Chubbuck's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Pocatello, Idaho March 27, 2021 CITY OF CHBBUCK, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2020 SECTION I - SUMMARY OF AUDITOR RESULTS Financial Statements Type of auditor's report issued: Unmodified Internal control over financial reporting Material weakness(es) identified? No Significant deficiencies identified? No Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs Material weaknesses identified? None reported Significant deficiencies identified? None reported Type of auditor's report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516(a)? No Major programs CFDA Number Name of Federal Proaram Capitalization Grants for Drinking Water 66.468 State Revolving Funds Dollar threshold used to distinguish between type A and type B programs: $ 750,000 Auditee qualifies as a low-risk auditee? Yes SECTION II - FINDINGS - FINANCIAL STATEMENT AUDITS None SECTION III - FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT None PRIOR YEAR FINDING NONE 87 EMM Electronic Municipal Markel Access A;LNtvi &u•.e MSP8 Submission ID: P31082394 Submission Date: 3/2912021 5:34 PM Status: PUBLISHED Disclosure Categories Rule 15c2-12 Disclosure !Audlted Financial Statements or GAFR for the year ended 0913012D20 Document File 2020 City of Chubbuck - CAFR.pdf Associated Securities The following are associated with this continuing disclosure submission. CUSIP-6 Issuer Name 171259 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO Total CUSIPs associated with this submission: 6 The disclosure will be published for the following securities. CUSIP-9 Issue Description 171259BE3 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 171259BFO CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 ................ 171259BGB CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 171269BHU CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 1712598J2 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 171259BK9 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 Subm€tter's Contact Information Issuer's Contact Information US BANK NATIONAL ASSOCIATION Name: CHRISTINA STOODILL Address: 1420 FIFTH AVE City, State Zip: SEATTLE, WA 98101 Phone Number: 2063444877 Email: ch6stina.stogdill@usbank.com 02021 Municipal Securities Rulemaking Board (MSRB) Period Date 03129!2021 Dated Date Maturity Date Coupon (%) 0912812011 09/01/2021 3 09/28/2011 09101/2022 3 09128/2011 09101/2023 3 09128/2011 09/0112024 4 0912812011 09/01/2025 4 09/28/2011 09101/2026 4.75 Obligated Person's Contact Information City of Chubbuck Name: Dan Christensen Address: City, State Zip: Phone Number: Email: dch4stensen@eityofchubbuck.us 2020 City of Chubbuck Financials.pdf posted 03/29/20216:49:34 PM The following issuers are associated with this continuing disclosure submission: CUSIP6 State Issuer Name 171255 ID CITY OF CHUBBUCK, IDAHO The following 16 Securities have been published with this continuing disclosure submission: Security: CUSIP - 171255AA0, Maturity Date - 09/01/2021 Security: CUSIP - 171255AB8, Maturity Date - 09/01/2022 Security: CUSIP - 171255AC6, Maturity Date - 09/01/2023 Security: CUSIP - 171255AD4, Maturity Date - 09/01/2024 Security: CUSIP - 171255AE2, Maturity Date - 09/01/2025 Security: CUSIP - 171255AF9, Maturity Date - 09/01/2026 Security: CUSIP - 171255AG7, Maturity Date - 09/01/2027 Security: CUSIP - 171255AH5, Maturity Date - 09/01/2028 Security: CUSIP-171255AJ1, Maturity Date - 09/01/2029 Security: CUSIP - 171255AK8, Maturity Date - 09/01/2030 Security: CUSIP - 171255AL6, Maturity Date - 09/01/2031 Security: CUSIP - 171255AM4, Maturity Date - 09/01/2032 Security: CUSIP - 171255AN2, Maturity Date - 09/01/2033 Security: CUSIP - 171255AP7, Maturity Date - 09/01/2034 Security: CUSIP - 171255AU6, Maturity Date - 09/01/2039 Security: CUSIP - 171255AZ5, Maturity Date - 09/01/2044 Please follow the link to make changes to this submission: https://uridefense.com/v3/_https://dataport.emma.msrb.org/Home?Index_;!!Jyr_0- kt4U4!S2c6ViLznSDKdo_VdOd9CoS908-3CrHO6JJbyVPErZWan2c6ma2ZLR91<EguskflYg8KGwQ$ PLEASE DO NOT REPLY. This is a system -generated e-mail. If you need assistance please contact the MSRB at 202-838- 1330 or you may obtain more information at https://uridefense.com/v3/_http://www.msrb.org_;!!Jyr_O- kt4U41S2c6ViLznSDKdo_VdOd9CoS908-3CrHO6JJbyVPErZWan2c6ma2ZLR9kEguskf3XNsLVKA$ . Dan Christensen From: Doni Langston <Doni.Langston@zionsbank.com> Sent: Monday, March 29, 2021 4:55 PM To: Jennifer Mabbott Subject: FW: Confirmation: Continuing Disclosure Submission Successfully Published to EMMA Please verify. Thanks, Doni Langston, Corporate Trust Specialist Zions Bancorporation, National Association Corporate Trust, Zions Bank Division 800 W. Main Street, Suite 700 Boise, ID 83702 (208) 501-7521 Doni.Langston@Zionsbanl<.com -----Original Message ----- From: EMMANotifications@msrb.org<EMMANotifications@msrb.org> Sent: Monday, March 29, 20214:54 PM To: Doni Langston <Doni.Langston@zionsbank.com> Subject: Confirmation: Continuing Disclosure Submission Successfully Published to EMMA ? EXTERNAL EMAIL! Question links/attachments. Your continuing disclosure submission has been published and can be viewed on the MSRB's Electronic Municipal Market Access (EMMA®) website at the following link: https.//urldefense.com/v3/_https://emma.msrb.org/ContinuingDisclosureView/ContinuingDisclosureDetails.aspx?sub mission!d=P31082502_;!!Jyr_0-kt4U4!S2c6ViLznSDKdo_VdOd9CoS908- 3CrHO6JJ byVPErZWan2c6ma2ZLR91<Eguskf2gvmcwuA$ Submissionld: P31082502 Disclosure Type: FINANCIAL/OPERATING FILING Audited Financial Statements or CAFR (Rule 15c2-12): 2020 City of Chubbuck CAFR and Table Updates for the year ended 09/30/2020 Document Name: Financial Operating Filing dated 03/29/2021