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HomeMy WebLinkAbout2021CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS Title Page 1 Table of Contents 2-3 Introductory Section 4 Letter of Transmittal 5-7 List of Principal Officials 8 Organizational Chart 9 Financial Section Independent Auditor's Report 10-11 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, 2021 TABLE OF CONTENTS - CONTINUED Other Supplementary Information 54 Combining Balance Sheet -Nonmajor Governmental Funds 55 Statement of Revenues, Expenditures, and Changes in Fund Balances -Nonmajor Governmental Funds 56 Statements of Net Position -Internal Service Funds 57 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 58 Statements of Cash Flows - Internal Service Funds 59 Budgetary Comparison Schedule -Nonmajor Governmental Funds 60 Statistical Section 61 Statistical Section -Table of Contents 62 Financial Trends 63-70 Revenue Capacity 71-74 Debt Capacity 75-76 Operating Information 77-79 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 :` ( n 1 r Cn Cn 11 (, . ID 83202 (IIIHISOMMI hi 111111 on, I t Ml 230=2371 fax C�• �� [ r t E t� � C n.! 1 s�C T1 he �®n®�°�ll➢le May®�° �ev�n �ng��n�Ily l��TIICIl��Ti� ®� $pIl� �:Il$y �:®L�lIIlIl�Il�9 �.Il�d �:ll$Il��n� ®fC $h� �Il% ®� �huna®ucA&e Idaho State Law requires that all general-purpose local governments with an annual budget that exceeds tVY o 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 (GAAS) by a fine 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, 2021. 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 fine of licensed certified public accountants has issued an unmodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2021. 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. Chir € it I The City of Chubbuck (population 16,608) 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 58,602. The City is located in Bannock County with a 2021 estimate census population of 91,210. The City is empowered to levy property taxes on both real and personal property within the city limits. It also is empowered by state statue to extend its corporate limits by annexation, which it had done from time to time. The City of Chubbuck operates under the Council -Mayor form of government. Policy-making and legislative authority are vested in a governing council (City Council) consisting of the Mayor and four other members, all elected on a non-partisan basis. The Council is responsible for passing ordinances, adopting budget, appointing committees, approval of internal control framework and hiring city management. The Mayor acts as the Chief Executive Officer and oversees the day-to-day operations of the City. The Mayor and Council members are elected at large for 4 -year terms, with two of the Council members standing for election every two years. The City of Chubbuck provides a full range of services. These services include Public Safety (police, fire, animal control, and building inspection); Environmental Health (sanitation, water, waste water treatment and storm water management); Transportation (street & highway maintenance and traffic engineering); Recreational (parks and recreation); Neighborhood Quality (engineering, planning and development, community services) and Administration (mayor/council, finance, elections, human resources, legal risk management, and information technology). In addition to general government activities, the Mayor and City Council exercise, or have the ability to exercise, oversight of the Chubbuck Development Authority, a legally separate corporation. Therefore, its activities are included as a separate component unit in the reporting entity. The annual budget serves as the foundation for the City of Chubbuck's financial planning and control. After reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests during May. The Chief Financial Officer and Mayor are responsible for preparing a draft budget for the Council. The budget is prepared by 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 moiutored 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 Gur 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 28, 2022 Rich Morgan City Treasurer Daniel Christensen City ALCCGuntant CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2021 Title Name Mayor Council President Council Member Council Member Council Member Elected Officials City Officials City Attorney Public Works Director City Engineer Sewer/Water Superintendent Sanitation/Streets Superintendent Treasurer City Clerk Human Resource Officer City Accountant Planning and Development Police Chief Computer Information Systems Parks & Recreation Fire Chief Kevin England Ryan Lewis Melanie Evans Dan Heiner Roger Hernandez Tom Holmes Rodney Burch Bridger Morrison Scott Baker/Cameron Lusk Ryan Sullivan Rich Morgan Joey Bowers Scott Gummersall Dan Christensen Devin Hillam Bill Guiberson Sergei Tomin Bill Guinn Merlin Miller CITY OF LHUBBULK ORGANIZATION CHART E ANIMAL CONTROL PARKS AND RECREATION Deato><n SL Companny, Chartered Certified Public Accountants 215 North 9th,. Suite A Pocatello, Idaho 83201-5278 (208) 232-5825 Members of Idaho Society of Certified Public Accountants Members of American Institute of Certified Public Accountants To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho 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, 2021, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. 11111111 1 11 11111111111, !111,111111 mill III 1 111111111 !111111111111111111 1 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. 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. 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, 2021, 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. Finphasis of a Matter= Change in Reporting Entity As described in Note 18 to the finanical statements, The City no longer reports the Health Plan Trust as a fiduciary fund Df the City and, as a result, changed reporting of the Trust to an Enterprise fund in accordance with the provisions of GASB Statement No. 10, which as resulted in a srestatement of the net position as of October 1, 2020. Our opinions are not modified with respect to this matter. 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 anv 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 2020 audited financial statements and, in our report dated March 27, 2021, 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 28, 2022, 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 28, 2022 CITY OF CHUBBUCK, IDAHO Management's Discussion and Analysis For the Year Ended September 30, 2021 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, 2021. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlighfis • 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 $79,029,691 (net position). • The governments net position increased by $10,596,609. Approximately 50 percent of this increase, $5,253,279 is attributed to capital contributions. • At the end of the current fiscal year, unassigned fund balances for the general fund were $2,912,732 or 31 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $1,998,332, and operating expenses increased by $1,358,887. These differences are due to a combination of increases in services used and increases in operating costs. • During the current fiscal year, City of Chubbuck's overall liabilities had a decrease of $2,671,033 from $28,378,670 to $25,707,637 (including compensated absences). The decrease was primarily due to a reduction in unearned revenue and net pension liabilities. • 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 20211 City of Chubbuck completed 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 aprivate-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. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City's is improving or deteriorating. 12 The Statement of Activities presents information showing now 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 the City's financials. 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 the City's financials. 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 the City's financials. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements may be found on pages 3347 of the City's financials. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's budgeted versus actual expenses and revenues, the schedule of employer's share of net pension liability and schedule of employer contributions. The schedules are followed by the internal service fund financial statements, and nonmajor budget comparison schedule. The other supplementary information is concluded with the statistical section 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 $79,029,691 as of September 30, 2021. The largest portion of the City %J Chubbuck'a 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 liabilitiesoutstanding Other liabilities DEFERRED INFLOWS Pension Certiticate or participation NET POSITION Net investment in capital assets Restricted Unrestricted Total net position City of �liu6bucl�"s Nei Pa�ition Governmental Activities Business Activities Total 2021 2020 2021 2020 2021 2020 S 4,741,568 S 1,622,259 5 24,485,477 S 23,029,624 S 29,227,045 S 24,651,883 32, ?33,009 28,622,260 52,0?5.446 42,829,274 84.808,455 71,451,534 37,474,.577 30,244,519 76,560,923 651858,898 114,035,500 96,103,417 1,283,818 630,614 545,136 305,250 1,828,954 935,864 371,544 2,911,628 19,700,917 21,798,685 20,072,461 24,710,313 2,242,683 819,309 3,392,493 2,849,048 5,635,176 3,668,357 21614,227 31730,937 23,093,410 24,647,733 25,707,637 28,378,670 2, 897, 955 1, 696, Z27 32,641,830 65,324 152,2?8 28, 622,260 1,230,545 5,302,369 41, 932, 621 168,150 31, 620 456,835 16,363,939 167,200 4,128, 530 6,998,596 74,574,451 168,150 44,986,199 167,200 091,874]5,378,964 24,496,821 x,287,090 22,801,155 S 31,549,956 S 26,926,594 S 47,479,735 S 41,027,960 S 79,029,691 S 67,9546 695,666) 554 The restricted portion of the City of Chubbuck's net position $168,150, represent resources that are subject to external restriction on how they maybe used. The remaining balance of unrestricted net position $4,287,090, may be used to meet the governments' ongoing obligation to citizens and creditors. As of September 30, 2021, the City can 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, 78 percent of the liabilities are made up of noncurrent liabilities. The decrease by 94 percent in total liabilities, compared to previous year, is due to a reduction in net pension liabilities. 15 Governmental activities. Governmental activities' key elements are broken down in the following charts. Government activities increased net position by $4,623,362 and business -type activities increased net position by $5,973,247. The City of Chubbuck'a direct charges to users of governmental services totaled $436,842. These charges are for park rentals, building permits and other fees related to public safety and administration. The general government accounts for 87 percent of the total charges for services. Public safety includes the fire and police department and accounts for 54 percent of total charges for services. Below is summary of the City of Chubbuck's Changes in Net Position. REVENUES Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenue. Property taxes Franchise fees and intergovernmental Other Transfers in Tfltai Revenues EXPENSES General government Public safety Planning and development, streets Parks and recreation Community services LVater Sewer Sanitation Health plan trust CIAw1NC Authoritl Transfers out Total expenses NET CHANGE IN NET POSITION City of Clnibbuck's Changes in Net Position Governmental Activities Business Activities Total NOM 2020 2021 2020 2421 2020 S 436,342 S 439,574 � 13.,154,012 S 9,155,630 S 11,590,854 S 9,595,254 21345,551 652,897 - - 21345,551 652,897 2,2531204 1,253,033 31228,076 21785,144 5,481,280 4,0387177 4,790,711 7,123,630 - - 4,790,711 7,123,630 3,436,987 1,373,939 - - 3,436,987 1,373,939 833,328 203,673 824,596 107,808 11657,924 311,481 21135,983 2,070,501 - - 14,096r623 11,046,746 15,2061684 12,0481632 29,3031307 23,095,378 1,348,508 41623,362 8341349 5,973,247 31908,435 16,596,609 4,7421 1,537,463 - - 1,348,508 3.,537,463 5,090,452 5,836,410 - - 5,090,452 5,836,410 21135,983 2,070,501 - - 2,135,983 2,0701501 8021354 636,713 - - 802,354 636,713 95x964 131,310 - - 95,964 131,310 - - 2,742,104 2,4401008 2,742,104 2,440,005 - - 2,868,693 3,174,444 2,8681693 3,1741444 - - 3.1969,580 1,9161682 1,9691580 1,916,682 - - 11346,956 - 3.1346,956 - - - 306,104 609,063 306,104 609,063 81140,197 18,352,594 9,2331437 18,706,698 9,4731261 10,212,397 784' NET POSITION beginning- RESTATED 26,926,594 26,092,245 41,506,488 37,219,525 68,433,082 63,211,77Q NET POSITION ending X31,549,956 S26,926,594 S47,479,735 S41,027,960 S79,029,691 S 67,954,554 16 Expenses and Program Revenues —Governmental Activities rrr r:rr rr,r rrr rrr rrr rr� rrr • The majority of the City of Chubbuck's governmental activities' revenue is received from property tax 34 percent. • When all taxes, franchise fees, and intergovernmental revenues are added together, they make up 88 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 2021. 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. Business type activities. Businesses -type activities' key elements are broken down in the following charts. Revenue by Saurce -Business Type Activities Other 824,396 5.42% �sj000ra0o 4soo01000 3,500,000 S, 000,0 O O 2,500;0 0 0 $ 2,000;.0 0 0 1,500,0 0 0 x.,000;000 $500,000 Expo r,�� • 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 $2,107,081. Of which $540,267 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 $363,322. With the other financing sources and uses, the net change in the general fund increase $548,050 for fiscal year 2021. 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: $4,197,195, Sewer: ($1,341,982), and Sanitation: $1,833,266. The water fund had an increase in net position of $2,136,303; the sewer fund had an increase in net position of $2,552,372; and the sanitation fund had an increase in net position of $378,801. 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 $548,050 increase in the general fund balance. The major variances in expenditures were due to an increase in the general government and capital outlays expenditures. The highway, streets and roads fund actual revenues and expenditure were more than budget. The difference accounts for a $580,664 increase 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, 2021, amounts to $84,678,559 (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 $34,026,470. The increase in assets includes development contributions of $5,253,279. 20 Land Building & improvements Jehicles & Equipment infrastructure +ork in Progress CiAV VCA: Land Infrastructure Office Equipment eater Rights Total City of Chubbuck s Capital Assets Governmental 1Activltie5 2021 2020 S 21643,092 7,384,595 5,387,752 19,726,936 5,758,995 S 2,137,999 4,822,.142 5;22B,317 13,511,232 51664,961 S Business Actives 2421 2020 2,159,317 S 1,338,797 47,557,894 21,052,955 3,328,801 7,771,799 1,701,858 3,295,'176 - 335,225 18,183,193 Total 2021 2020 S 41802,909 S 31975,796 55,5521590 25,885,108 131715,553 1310001115 9y726,936 18, 511, 282 71460,853 31950,137 - 385,225 18,183,193 - - 2,421,157 2,421,157 2,421,167 2,421,'957 S 411401,471 S 36,3641701 S 52,279,537 S 54,9591324 S 1031681,008 8 91,324,025 Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 41 of the City's financials. Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total long-term debt outstanding of $20,072,461. Of this amount, $11,035,206 is comprised of notes to the Department of Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a remaining balance of $781,777 used for purchasing water rights. The State of Idaho mandates a general obligation debt limit of 10 percent of the assessed market value oT taxable property within the City boundaries. The City of Chubbuck currently has no general obligation debt. The limit totaled $80,708,973 based on September 30, 2021's actual assessed values. Therefore $80,708,973 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 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400. 21 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2021 ASSETS Current assets Cash and cash equivalents 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 Net pension asset Investments Capital assets Accumulated depreciation Pension DEFERRED OUTFLOWS 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 Health Claims incurred but not reported Utility deposits Noncurrent liabilities Bonds payable, net unamortized premium Notes payable Accrued compensated absences DEFERRED INFLOWS Pension Certificate of 2 897 985 participation NET POSITION Net investment in capital assets Restricted Unrestricted Governmental Activities $ 7,288,898 658,205 285,253 13,003 (31605,376) 78,302 23,283 41741,568 41,401,471 (81759,641) 32,733,009 37,474,577 1,283,818 677,781 263, 384 3,605 1, 05,027 92,886 2,242,683 371, 544 371, 544 2,614,227 1, 696, 227 32,641,830 (1,091,874) $ $ 47,479,735 31,549,956 Business -type Activities $ 17,463,213 31605 31605,376 471828 796,459 21,916,481 168,150 405,081 38,717 11995,765 62,279,537 (10,242, 808) 54, 644, 442 76, 560, 923 545,136 1,001,558 115, 339 2, 346 532,421 105,429 32,556 147,355 9661818 83,590 405,081 3,392,493 634,422 18,936,270 130,225 19,700,917 23,093,410 1,230,545 5, 302, 369 41,932,621 168,150 5,378,964 Development Total Authority $ 24,752,111 658,205 285,253 16,608 126,130 819, 742 26,658,049 168,150 405,081 129,896 1,995,765 103,681,008 (19,002,449) 87,377,451 $ 3 0931753 11,451 2,975 3,108,179 1,622,524 1622,524 114,035,500 4,730,703 1, 828, 954 1,679,339 378,723 21346 536,026 1,310,456 125,442 147,355 966,818 83,590 _ 405,081 5,635,176 See accompanying notes to financial statements 634,422 18,936,270 501,769 20,072,461 4,128,530 6,998,596 74,574,451 168,150 4,287,090 $ 7910291 691 179, 929 206,000 235,616 621,545 1656,500 1,656,500 25,707,637 21 278,045 (475,592) 2,416,951 511, 299 $ 21 452,658 FunctionslPrograms Primary Government: Governmental activities: General government Law enforcement Fire control Planning and development Highway, streets, and roads Parks and recreation Community services Other special funds Business -type activities Water Sewer Sanitation Health plan trust CIAWWC Authority Total primary government Component Unit: Chubbuck Development Authority Net (expense)/revenue General revenues $ 5 148 651 Property taxes Franchise fees Intergovernmental income Grant revenue Interest income Gain from asset disposal Other revenue NET CHANGE IN NET POSITION CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2021 Expenses $ 1, 348, 508 3,288,219 11802,233 3711732 1,764,251 802,354 91,539 4,425 Program Revenues Total Operating Capital Net Charges for Grants and Grants and (Expense) Development Services Contributions Contributions Revenue Authority $ 379,116 27,335 5,009 8,493 16,889 9,473,261 436,842 9,867 - (31251,017) - (11797,224) - (371,732) - 21253,204 497,446 - (785,465) - - (91, 539) - 11,498 - 71073 - 21345,551 21253,204 (414371664) - 2, 742,104 3,167, 282 - 1, 687,196 2,112, 374 21868,693 41403,367 - 11009,275 21543,949 - 11969,580 21044)405 - 3031605 378,430 11346,956 1,484, 058 - - 137,102 - 3061104 54,900 - 228,000 (23,204) - 91233,437 11,154,012 - 31228,076 51148,651 - $ 18, 706, 698 $ 11, 590, 854 $ 21345,551 $ 51481,280 $ 710,987 BEGINNING NET POSITION -RESTATED ENDING NET POSITION General Business -type Activities Activities $ (4,437,664) 4,790,711 195,483 3, 241, 504 Total $ 710,987 4,790,711 195,483 3, 11504 $ (4,708,382) $ (4,708,382) Development Authority $ (41 708,382) 2, 952, 591 97,869 24,178 1221047 12,709 8001418 8001418 - 735,459 - 7351459 53,242 91061,026 824,596 91885,622 31192,165 41623,362 51973,247 10,596,609 (11 516,217) 261594 41, 506,488 681 433, 082 31 U0010 I U 26, $ 31,549,956 $ 47,479,735 $ 79,029,691 $ 2,452,658 23 See accompanying notes to financial statements ASSETS Cash Accounts receivable Property and sales taxes receivable Intergovernmental receivables Interest receivable Prepaid expense Grant receivable LIABILITIES Accounts payable Accrued payroll Accrued compensated absences Interest Payable Due to other funds DEFERRED INFLOWS OF RESOURCES Unavailable revenues -taxes Unavailable revenues -prepaid FUND BALANCES Committed Unassigned CITY OF CHUBBUCK, IDAHO BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 General Fund $ 4,286,527 19,576 633,216 81, 602 13, 003 78, 302 Highway, Streets, and Roads Fund $ 1,193,267 3,707 24,989 203,651 Other Governmental Funds $ 1,566,814 Total $ 7,046,608 23,283 658,205 285,253 13, 003 78, 302 $ 5,112,226 $ 1,425,614 $ 1,566,814 $ 8,104,654 $ 555,536 232,136 78,213 865,885 $ 122,245 31, 248 14,673 3,605 3,605,376 3.777.147 128,582 20,932 - 1,205,027 - - 1,333,609 20,932 - - - 1,566,814 2,912,732 (2,372,465) - 2,912,732 (2,372,465) 1,566,814 $ 5,112,226 $ 1,425,614 $ 1,566,814 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 $8,759,641. Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds: Property tax 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 Deferred inflows of resources related to pensions Deferred inflows of resources related to certificates of participation 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. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Accrued compensated absences Net pension asset/(liability) Net position of governmental funds 24 See accompanying notes to financial statements $ 677,781 263,384 92,886 3,605 3,605,376 4,643,032 149,514 1,205,027 1, 354, 541 1,566,814 540,267 2,107,081 32,641,830 149,514 1,283,818 (2,897,985) (1,696,227) 242,290 (371,544) 91.179 $ 31,549,956 CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 REVENUES Property taxes Franchise fees Intergovernmental income Court Revenue Parks revenue Licenses, permits and fines Grants Fire protection and prevention Leases and rents Interest income Donations Charges for services Other revenues EXPENDITURES General government Law enforcement Fire control Planning and development Highway, streets, and roads Parks and recreation Community services Other purchased services Capital outlays EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from certificate of participation Interest expense NET CHANGE IN FUND BALANCES BEGINNING FUND BALANCE ENDING FUND BALANCE General Fund H lu hway, Streets, Other and Roads Governmental Fund Funds Total $ 4,000,938 $ 894,6104,895,548 195,483 - - 1951483 11852)334 113891170 - 372417504 271335 - - 27,335 141275 - - 141275 2621953 - - 2621953 21334,053 - - 21334,053 51009 - - 51009 1161163 - - 1161163 891735 61799 11335 977869 41698 - 67800 11,498 21614 81493 - 111107 541793 131222 6521601 7201616 81960,383 213121294 660,736 1119331413 1, 072,664 - - 1, 072,664 375501335 - - 31 550, 335 117381732 - - 11738,732 3951491 - - 3951491 114371020 - 1,437,020 7221129 - - 7221129 91,539 - - 911539 41425 41425 11752,815 1,129, 307 - 218821122 91323,705 215661327 4,425 11,894,457 (363,322) (254,033) 656,311 38,956 911,372 838,302 - 1,749,674 911,372 8341697 - 11746,069 548,050 5801664 6561311 11 25 See accompanying notes to financial statements 785, 025 2,3641682 (21953,129) 910,503 3221 056 $ 21912,732 $ (21372,465) $ 11566,814 $ 21 107,081 (Continued) CITY OF CHUBBUUK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 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 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 Capital asset purchases capitalized Gain or (loss) from asset disposal Depreciation expense The net affect of sales transactions involving capital assets Unavailable revenues are not recorded as current period receipts 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 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 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 Governmental funds report proceeds from certificate of participation as other financing sources. However, in the Statement of Net Activities they are reported as lease expense net of amortized deferred inflows: Certificate of participation proceeds in excess of deferred inflows Change in net position See accompanying notes to financial statements $ 1,785,025 2,253,204 21882,122 (80,771) (11034,984) 4,019,571 (104,837) (27,196) 479, 905 (1,543,949) $ 4,6231 362 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2020 Internal Internal Health Plan Service Service Water Sewer Sanitation Trust CIAWWCA Total 2020 Funds 2021 Funds 2020 ASSETS Current assets Cash and cash equivalents $ 4,687,010 $ 8,177,158 $ 3,737,679 $ 757,528 $ - $ 17,359,375 $ 15,778,283 $ 346,128 $ 345,742 Accounts receivable 284,580 330,204 168,642 13,033 - 796,459 766,642 - - Interest receivable - 3,605 - - - 3,605 3,737 - - Prepaid expense 13,632 - - 34,196.00 - 47,828 - - - 4,985,222 8,510,967 3,906,321 804,757 - 18,207,267 16,548,662 346,128 345,742 Noncurrent assets Restricted assets Bond reserves 168,150 - - - - 168,150 167,200 - - Utility deposits 401,531 2,950 600 - - 405,081 425,224 - - Net pension asset 13,884 12,193 12,640 - - 38,717 - - - Advance to joint venture - 228,000 - - - 228,000 16,558,880 - - Investments 1,995,765 - - - - 1,995,765 2,033,194 - - Capital assets 29,450,373 26,053,141 6,514,938 - - 62,018,452 54,698,239 261,085 261,085 Accumulated depreciation (4,074,350) (3,755,425) (2,158,173) - - (9,987,948) (11,876,476) (254,860) (253,574) Due from other funds - 3,605,376 - - - 3,605,376 3,737,049 - - 27,955,353 26,146,235 4,370,005 - - 58,471,593 65,743,310 6,225 7,511 32,940,575 34,657,202 8,276,326 804,757 - 76,678,860 82,291,972 352,353 353,253 DEFERRED OUTFLOWS Pension 195,486 171,683 177,967 - - 545,136 305,250 - - LIABILITIES Current Liabilities Accounts payable 275,552 478,895 218,020 108 - 972,575 1,111,654 28,983 21,403 Payroll payable 41,136 35,946 38,257 - - 115,339 113,159 - - Health Claims incurred but not reported - - - 83,590 - 83,590 - - - Unearned contributions - - - 105,429 - 105,429 - - - Accrued compensated absences 13,882 13,235 5,439 - - 32,556 28,275 - - Current portion of bonds payable 147,355 - - - - 147,355 142,355 - - Accrued bond interest 2,346 - - - - 2,346 2,683 - - Current portion of long-term debt 21,506 852,545 92,767 - - 966,818 774,934 - - Accrued note interest 530,531 - 1,890 - - 532,421 229,361 - - Deposits 401,531 2,950 600 - - 405,081 425,224 - - 1,433,839 1,383,571 356,973 189,127 - 3,363,510 2,827,645 28,983 21,403 Noncurrent Liabilities Revenue bonds payable, net unamortized premium 634,422 - - - - 634,422 781,777 - - Advance payable - - - - 228,000 228,000 16,558,880 - - Notes payable 8,257,377 10,182,661 496,232 - - 18,936,270 19,660,675 - - Compensated absences 55,527 52,942 21,756 - - 130,225 113,098 - - Net pension liabilities - - - - - - 1,243,135 - - 8,947,326 10,235,603 517,988 - 228,000 19,928,917 38,357,565 - - 10,381,165 11,619,174 874,961 189,127 228,000 23,292,427 41,185,210 28,983 21,403 DEFERRED INFLOWS Pension 441,273 387,543 401,729 - - 1,230,545 31,620 - - Certificateofparticipation 1,859,364 1,866,434 1,576,571 - - 5,302,369 456,835 - - NET POSITION Net investment in capital assets 16,088,914 22,297,716 3,767,766 - (228,000) 41,926,396 16,356,428 6,225 7,511 Restricted for bond service 168,150 - - - - 168,150 167,200 - - Unrestricted 4,197,195 (1,341,982) 1,833,266 615,630 - 5,304,109 24,399,929 317,145 324,339 $ 20,454,259 $ 20,955,734 $ 5,601,032 $ 615,630 $ (228,000) 47,398,655 $ 40,923,557 $ 323,370 $ 331,850 Adjustment to reflect the consolidation of internal See accompanying notes to financial statements 81,080 $ 47,479,735 OPERATING REVENUES Service revenue Revenue used as security for revenue bond: Charges for services OPERATING EXPENSES Administration Salaries and wages Personnel benefits Repairs and maintenance Supplies and tools Travel, meetings, and training Fuels and lubricants Telephone and communications Utilities Treatment- Pocatello Lease Payment Other purchased services Professional services Bad debt Depreciation OPERATING INCOME NONOPERATING REVENUE (EXPENSE) Interest income Investment income Note interest income Bond interest expense Note interest expense Grant revenue Certificate of participation Gain (Loss) from asset disposal Transfers in (out) CAPITAL CONTRIBUTIONS Developer contributions CHANGES IN NET POSITION CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Water Sewer $ 2,385,505 $ 4,403,367 781,777 - 3,167,282 4,403,367 Health Plan Sanitation Trust CIAWWCA $ 2,044,405 2,044,405 $ 1,484,058 1,484,058 _ _ _ 52,741 729,550 662,841 673,899 - 143,263 110,565 185,270 945,813 547,863 114,683 546,229 - 109,431 92,134 161,335 - 6,589 6,696 4,780 - 9,587 8,579 8,384 - 200,848 33,329 3,022 - - 1,430,738 - - 85,412 85,738 72,422 - 40,174 - 29,809 311,412 78,587 132,225 45,010 89,731 581 336 638 - 738,640 190,829 216,240 - 2,690,525 2,868,693 1,947,038 1,346,956 476,757 1,534,674 97,367 137,102 $ 54,900 Total $10,372,235 2020 $ 8,231,548 - 781,777 924,132 54,900 11,154,012 9,155,680 Internal Internal Service Service Funds 2021 Funds 2020 $ 360,800 360,800 $ 78,709 78,709 - 52,741 - 69 285,277 - 2,066,290 2,142,501 - - - 1,384,911 994,606 5,534 5,322 - 1,208,775 1,034,064 19,046 20,420 - 362,900 296,984 332,853 28,435 - 18,065 9,351 3,182 2,676 _ - - 1,236 30,219 - 26,550 17,220 - - - 237,199 206,815 6,528 10,685 - 1,430,738 1,582,338 - - - 243,572 - - - - 381,395 66,743 - - 3,050 348,603 263,409 - - - 1,555 7,201 - - 303,054 1,448,763 1,179,197 1,287 1,769 306,104 9,159,316 7,800,429 369,735 384,803 (251,204) 1,994,696 1,355,251 (8,935) (306,094) 6,498 9,744 5,297 - - 21,539 50,237 455 1,397 (966) - - - - (966) 51,834 - - - 3,605 - - - 3,605 3,737 - - (24,507) - - - - (24,507) (28,420) - - (3,749) - (22,542) - - (26,291) (29,816) - - _ _ _ - 228,000 228,000 228,000 - - _ _ _ _ _ - (190,123) - - (4,926) (4,926) (4,926) - 815,196 800,418 2,000 - - (27,650) 8,423 (22,171) - 1,043,196 1,001,798 87,449 455 1,397 1,687,196 1,009,275 303,605 - - 3,000,076 2,557,144 - - 1,687,196 1,009,275 303,605 - - 3,000,076 2,557,144 - - 2,136,303 2,552,372 378,801 137,102 791,992 5,996,570 3,999,844 (8,480) (304,697) BEGINNING NET POSITION -RESTATED 18,317,956 18,403,362 5,222,231 478,528 (1,019,992) 41,402,085 36,923,713 331,850 636,547 ENDING NET POSITION $ 20,454,259 $20,955,734 $ 5,601,032 $ 615,630 $ (228,000) $47,398,655 $ 40,923,557 $ 323,370 $ 331,850 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (23,323) Change in net position of business -type activities $ 5,973,247 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from revenues Cash paid to suppliers Cash paid to employees Net cash provided by operating activities CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Net change in interfund loans Proceeds from grants Proceeds from deposits (payments) Net cash (used) in noncapital financing activities CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on capital debt Interest paid on capital debt Proceeds from debt Proceeds from certificate of participation Proceeds from asset disposals Purchase of capital assets Interest received Net cash provided (used) in capital and related financing activities CASH FLOW FROM INVESTING ACTIVITIES Cash paid for investments Interest from investment Net cash provided by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEGINNING CASH AND CASH EQUIVALENTS ENDING CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents Cash and cash equivalents - Restricted Health Plan Water Sewer Sanitation Trust CIAWWCA Total 2020 Internal Service Funds Service 2021 Internal Funds 2020 $ 3,181,701 4) 4,384,158 $ 2,030,856 $ 1,535,993 $ 54,900 $ 11,187,608 $ 9,191,144 $ 3611255 $ 807106 (11007,658) (11878,719) (111207046) (17435,185) (31050) (51444,658) (37180,553) (355,335) (358,664) (11010,924) (878,750) (914,939) - - (278041613) (21893,006) (57534) (51322) 11163,119 17626,689 (41129) 1001808 517850 21938,337 37117,585 386 (2837880) - 411,523 - - (279,850) 131,673 131,541 - - _ 228,000 2287000 2281000 - - (20,693) 200 350 - - (20,143) 361090 - - (20,693) 4111723 350 - 51,850 3397530 3951631 - - (103,700) (1633101) (644,528) (89,294) - - (896,923) (11304,287) - - (28,593) - (227564) - - (517157) (58,729) - 2221047 - - - - 2221047 5671120 - - 11699,167 177057628 114407739 - - 41845,534 2667712 - - _ 21000 - - (21473,515) (21071,639) (210087774) - - (615537928) (31114,265) - - 51532 131481 51297 - - 24,310 105,940 - - (738,463) (997,058) (674,596) - - (21410,117) (31535,509) - - (28,620) - - 377429 - - - - 371429 - - - 37,429 - - - - 371429 (28,620) - - 4417392 170411354 (678,375) 1001808 - 9051179 (50,913) 386 (283,880) 41815,299 711387754 474161654 606,720 - 1679771427 161421,620 345,742 629,622 $ 51256,691 $ 81180,108 $ 37738,279 $ 707,528 $ - $ 17,882,606 $ 16,370,707 $ 3467128 $ 345,742 $ 4,687,010 $ 8,177,158 $ 3,737,679 $ 757,528 $ - $ 17,359,375 $ 15,778,283 569,681 2,950 600 (50,000) - 523,231 592,424 $ 51256,691 $ 81180,108 $ 31738,279 $ 707,528 $ - $ 17,882,606 $ 16,370,707 29 See accompanying notes to financial statements $ 346,128 $ 345,742 $ 3461128 $ 345,742 OPERATING INCOME RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation Pension expense Bad debt expense Prepaid expense (Increase) decrease in assets Accounts receivable Increase (decrease) in liabilities Accounts payable Payroll payable Accrued compensated absences Total adjustments NET CASH PROVIDED BY OPERATING ACTIVITIES CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 704358 Water $ 476,757 738,640 (130,010) 581 (13,633) 14,419 Sewer $ 1,534,674 1907829 (119,024) 336 (19,209) Sanitation $ 97,367 216,240 (73,778) 638 (13, 549) Health Plan Trust CIAWWCA $ 1371102 $ (251,204) Total 1, 994, 696 2020 $ 1,355,251 Internal Service Funds Service 2021 Internal Funds 2020 (3047697) - 303,054 1,448,763 1,179,197 1,287 1,769 - - (3227812) 2091758 - - 11555 71201 - - - (13,633) - - - (3,058) (21,397) 357465 - - 84,465 25,403 (249,055) (33,236) - (172,423) 296,372 7,579 19,048 (724) (17198) 41102 - - 27180 277208 - - (71376) 141878 13,906 - - 21,408 71133 - - 6861362 92,015 (101,496) (36,294) 3037054 943,641 177621334 87866 201817 $ 1,163,119 $ 1,626,689 $ (4,129) $ 100,808 1z 30 See accompanying notes to financial statements 51,850 $ 2,938,337 $ 3,117,585 $ 386 $ (283,880) CITY OF CHUBBUton, IDAHO STATEMENT OF NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2020 Assets Cash Liabilities Accounts payable Net Position Held in trust Recreation Programs Trust Fund 2021 $ 38,078 38,078 270 270 31 2020 $ 43, 242 43,242 $ 43,242 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, 2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 Recreation Programs Trust Fund 2021 2020 Additions Boys registration $ 15, 917 $ 21,112 Girls registration 10,088 10,017 Tee/tiger registration 14,465 5,232 Boys sponsorship 2,250 1,750 Girls sponsorship 2,550 - Other revenue 90 - Tota! additions 45,360 38,111 Deductions Boy's baseball 22,336 23,822 Girl's softball 11,884 9,588 Tee/tiger ball 7,781 4,704 Other expenses 8,793 2,612 Total deductions 50,794 40,726 Change in net position (5,434) (2,615) Net position -beginning of the year 43,242 45,857 Net position -end of the year $ 37,808 $ 43,242 32 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 15) NOTE 1 - Summary %J Significant Accounting Policies The City's financial statements comply with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements within the codification. The government -wide financial statements, including the enterprise funds and the fund financial statements for the proprietary funds, are also under GASB codification. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. Applicable GASB statements have been implemented through GASB 91 with the exception of those standards not required to be implemented. A. Reporting Entity The City's financial reporting entity comprises the following: Primary Government In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, "The Financial Reporting Entity". Currently, the City reports 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, 290 E. Linden Ave, Chubbuck, Idaho 83202. Blend Component Unit -Enterprise Fund Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA) Eff ective 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 (CIAWWCA) 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 two -member board governs the Chubbuck Impact Area Wastewater Collection Authority with 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 $228,000. During the year, the City of Chubbuck retained all assets within the Authority. Complete financial statements of the Authority can be obtained from the City Clerk, City of Chubbuck, 290 E. Linden Ave, Chubbuck, Idaho 83202. B. Basis of Presentation Government -wide Statements The Statement of Net Position and Statement of Activities displays information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business -type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. 33 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 151 NOTE I= Summary of Significant Accounting 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 i % 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, sanitation, health plan trust, Chubbuck Impact Area Wastewater Collection Authority 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. The City reports the following major proprietary funds: The Water Fund accounts for the operations involved in collecting and distributing culinary water to the citizens of Chubbuck. The Sewer Fund accounts for operations involved with the collection and treatment of sewer water. The Sanitation Fund accounts for the operations for solid waste removal and disposal. The Health Plan Trust Fund provides optional health care benefits to City employees, dependents, and employees eligible through Cobra. All medical and prescription drug coverages are paid by the City through contributions to the Trust. A third party administers the benefits and receives a fee for processing claims. Internal Service Funds Central Garage Each fund is allocated the costs of operations based on equipment maintenance and repairs to their departments. 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 ACCOUnting 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 the 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. 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 interf und activity has been eliminated from the government -wide financial statements. D. Budgets and Encumbrances Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, 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 nU t use the encumbrance method of accounting5 NOTE 1 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 15) Summary of Significant Accounting Policies (Continued) 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 ndependent 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 propert y, 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. Government -wide Statements In the government -wide financial statements, the assets are accounted for as capital assets. All capital assets are valued at historical costI 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 depreciatI on 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 Other structures 20-30 years Equipment Vehicles Fund Financial Statements 15-20 years 7-10 years 5-7 years 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. KZy CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 15) NOTE 1 - Summary of Significant Accounting Policies (Continued) 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. 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." 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. �7 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 15) NOTE 1 - Summary of Significant Accounting Policies (Continued) L. Equity Classifications (continued) 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 - Legal Compliance -Budgets Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The budget is prepared by fund at the function level and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. The City Council holds public hearings and may add to, subtract from or change appropriations, but may not change the form of the budget. Any changes in the budget must be within the revenues and reserves estimated as available to the City or ,the revenue estimates must be changed by an affirmative vote of a majority of the City Council. After public hearings and before the end of the fiscal year, the City Council formally adopts the budget. Budgetary control is exercised by function at the fund level. The City Manager is authorized to transfer budgeted appropriations within individual funds, but cannot alter the appropriations on a fund level without City Council approval. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, several supplementary appropriations may be necessary. 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 $ 168,150 405,081 $ 573,231 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 oris returned when the payer stops utility service. Restricted utility deposits totaled $405,081 at year-end. m CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 15) 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, $658,205 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, 2021. NOTE 6 - Cash Cash Equivalents and Investments Primary Government: Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Restricted Unrestricted Fiduciary Fund: Cash Deposits Balance $ 573,231 24,752,111 $ 25,325,342 Balance 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 $25,363,420 and the bank balance was $20,989,171. 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 $3,613,989. The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Investments As of September 30, 2021, the City had the following investments: Maturities More Than Fair value No Maturity.Years 10 Years Moody Money Funds $ 11935 $ 11935 $ - $ - N/A U.S. Government Bonds 11997,700 - 11997,700 - Aaa /AA+ Total Investments $ 11999,635 $ 11935 $ 11997,700 $ - 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 -carry ing amount Unrestricted 39 $ 3,093,753 NOTE 6 - NOTE 7 - NOTE 8 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 15) Cash and Cash Equivalents and Investments (Continued) 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 $3,093,753. At year-end, all the Authority's deposits were held in the LGIP. Deposits in the LGIP are not insured or guaranteed by the Federal Deposit Insurance Corporation, the State of Idaho or any other government agency. CDA's deposits in the bank at year-end were fully insured or collateralized. The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Investments -The CDA has no investments 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) 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. 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: CIAWWC Water Sewer Sanitation Authority $ 3021660 $ 342,620 $ 174,560 $ - Accounts Receivables Allowance for Doubtful Accounts Concentration of Credit Risk Total $ 819,840 (18,080) (12,416) (51918) - (36,414) $ 284,580 $ 330,204 $ 1681642 783,426 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 counterpart y 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 LGID , 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. C�; NOTE 9 - NOTE 10 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 15) Chances 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 Balance Ending Additions Deletions Balance $ 2,137,999 $ 505,093 $ - $ 2,643,092 51664,961 770,989 6761955 51758,995 18,5111282 11215,654 - 19,726,936 41822,142 311610108 98,554 71884,696 51228,317 159,435 - 51387,752 36,364,701 51812,279 775,509 41,401,471 71742,441 11034,983 17,783 8,759,641 $ 28,622,260 $ 41777,296 $ 757,726 $ 32,641,830 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 Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Beginning Ending Balance Additions Deletions Balance $ 2,225,023 $ 321,020 $ 386,226.00 $ 2,159,817 21421,167 - - 2,421,167 31295,176 712,758 21306,076 11701,858 39,246,159 26,623,411 181201,676 47,667,894 71771,799 557,002 - 81328,801 54,9591324 28,214,191 20,893,978 62,279,537 12,130,050 11146,995 31034,237 1012421808 $ 42,829,274 $ 27,067,196 $ 17,859,741 $ 52,036,729 Governmental Business -type $ 92,886 $ 32,556 371,544 130,225 $ 464,430 $ 162,781 Long-term Debt: The City's long-term debt is segregated between the an to be repaid from governmental activities and amounts to be repaid from business -type activities. 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 port ion Noncurrent portion 41 $ 21,506 80, 864 $ 102,370 NOTE 10 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 15) Long-term Debt and Accrued Compensation (Continued) The City was authorized to borrowed $17,569,518 from the Department of Environmental Quality (DEQ) under four (4) separate loans. The four (4) loans have zero percent interest rate and are required to be paid in biannual installments over 20 years. 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. 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. 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. 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. Less current portion Noncurrent portion Outstanding $ 104,589 5,733,006 5,106,170 91,441 $ 11,035,206 852,545 $ 10,182,661 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 was not closed at the end of fiscal year 2021. Available Principal $ 323487 $ 8176513 , , , 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 port ion Noncurrent portion Net Premium Principal Total $ 36,777 $ 745,000 $ 781,777 36,777 745,000 781,777 7,355 140,000 147,355 $ 29.422 $ 605.000 $ 634,422 Bond premiums, net amortization totaled $36,777. The bond premium and expenses are amortized over fifteen (15) years, the life of the bond. Bond premium amortization of $7,355 for the year. Notes Payable On June 4, 2008, the City issued a note to purchase assets needed in order to collect sanitation for the City. The note was issued at 5.25%. The note was refinanced in 2009. The note was issued for $1,375,000 with a monthly payment of $9,321 until the maturity date of May 5, 2029, Note Payable: $ 588,999 Less current portion 92,767 Noncurrent portion $ 496,232 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 Highway, Streets, and Roads Sewer Enterprise Fund 42 Due to Due to $ 3,605,376 $ - - 3,605,376 $ 3,605,376 $ 3,605,376 NOTE 10 - NOTE 11 - NOTE 12 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 15) Long-term Debt and Accrued Compensation (Continued) Annual Debt Service Requirements for leases, bonds and notes payable Year Ending September 30 2022 2023 2024 2025 2026 2027-2031 2032-2035 Changes in long-term liabilities Long-term liability activity for the year was as follows: Governmental activities Compensated absences Business -type activities Bonds payable 880000 $ 135000 745,000 140,000 Notes payable Compensated absences Conduit Debt Obligations Beginning Balance Governmental Activities Business -type Activities Principal Interest Principal Interest $ - $ - $ 11837,191 $ 50,013 11852,153 41,796 1,857,325 331288 11881,004 23,185 11855,490 12,732 71195,075 11382 4,169,542- 20,647,780 $ 162,396 Ending Due within Additions Reductions Balance one year $ 429,306 $ 551,548 $ 516,424 $ 464,430 $ 92,886 $ 429,306 $ 551,548 $ 516,424 $ 464,430 $ 92,886 Long-term portion $ 371,544 Beginning Ending Due within Balance Additions Reductions Balance one year 20,435,609 222,047 754,568 19,903,088 966,818 141,373 1971245 175,837 162,781 32,556 $ 21,456,982 $ 4197292 $ 11065,405 $ 20,810,869 $ 11139,374 Long-term portion $ 19,671,495 Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to lease will expire in the year 2043. There are no voluntary or limited obligations in regards to this Certificate of Participation. Interfund Transfer Fund Guarantee Parks Fund Park Impact Fees Fund The purpose of the transfer was as follows: Transfers In Transfers Out 39,872 - $ 39,872 $ 39,872 A deposit of $39,872 was incorrectly receipted into Guarantee Parks Fund. It should have been receipted in Park Impact Fees Fund. 43 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 15) NOTE 13 - Transfer of Operations The City is a separate legal entity from the CIAWWCA and presents the CIAWWCA in the City's fiscal year-end financial statements as a blended component unit -enterprise fund. On March 4, 2021, the City took possession of the assets of land, bungs, and improvements from the CIAWWCA. This transfer does not conclude the City will automatically take possession of future asset acquisitions of the CIAWWCA. The assets transferred to the City represent a possession managed for the purpose of providing wastewater transmission and disposal services, thus meeting the definition of an operation. The service continuation is presumed because the assets used by the CIAWWCA will be used in the same manner by the City to provide the same service. The City recognizes the assets related to the wastewater transmission and disposal service operations as of March 4, 2021. The assets were capitalized at fair market value of $321,021 for land and $15,730,009 for buildings and improvements with annual depreciation of $524,334. The City recognizes a satisfaction of a receivable of $16,051,030 from the CIAWWCA with a remaining balance of $228,000. NOTE 14- Stewardship Compliance and Accountability A. Deficit Fund Balance At September 30, 2021, the City had a deficit fund balance in the amount of $2,372,465 in the Highway, Streets, and Roads fund. The future revenues and reduction of an interfund loan will decrease the deficit fund balance. NOTE 15- Pension Plan Plan Description: The City contributes to the Base Plan which is acost-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 74% for police and firefighters. As of June 30, 2020 it was 7.16% for general employees and 9.13% 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 $732,850 for the year ended September 30, 2021. CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 15) NOTE 15 - Pension Plan (Continued) Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions. At September 30,2021, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021, 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, 2021, the City's proportion was .16446931 percent. For the year ended September 30, 2021, the City recognized pension expense (revenue) of $(67,136). At September 30, 2021, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Differences between expected and actual experience 91,382 Changes in assumptions or other inputs 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 City contributions subsequent to the measurement date Deferred Outflows of Resources 1,491,021 Deferred Inflows of Resources $ 1 $ 751 504 4,079,885 (26,860) (26,859) 173,411 - $ 11828,954 $ 4,128,530 $173,411 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, 2021. 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, 2021 the beginning of the measurement period ended June 30, 2020 is 4.7 and 4.6 for the measurement period June 30, 2021. 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, 2021: 2022 2023 2024 2025 Actuarial Assumptions: $ (581,729) (524,257) (458,141) (908,859) 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, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases 3.05% Salary inflation Investment rate of return 6.35%, net of investment expenses Cost -of -living adjustments 1% 45 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 15) NOTE 15 - Pension Plan (Continued) Actuarial Assumptions: (continued) Contributing Members Service Retirement Members and Beneficiaries General Employees and All Beneficiaries - Males Pub -2010 General Tables, increased 11 % General Employees and All Beneficiaries - Females Pub -2010 General Tables, increased 21 % Teachers - Males Pub -2010 Teacher Tables, increased 12% Teachers - Females Pub -2010 Teacher Tables, increased 21 % Fire & Police - Males Pub -2010 Safety Tables, increased 21 %. Fire & Police - Females Pub -2010 Safety Tables, increased 26%. Disabled Members - Males Pub -2010 Disabled Tables, increased 38% Disabled Members - Females Pub -2010 Disabled Tables, increased 36% An experience study was performed for the period July 1, 2015 through June 30, 2020, which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2021, is based on the results of an actuarial valuation date July 1,2021. The long-term expected rate of return on pension plan investments was determined using the building block approach and aforward- 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 volaty and correlation. The capital market assumptions are as of 2021. Long -Term Expected Long -Term Target Nominal Rate Expected Real Asset Class Allocation of Return Rate of Return Core Fixed Income 30.00% 1.80% -0.20% Broad US Equities 55.00% 8.00% 6.00% Developed Foreign Equities 15.00% 8.25% 6.25% Assumed Inflation - Mean 2.00% 2.00% Assumed Inflation - Standard Deviation 1.50% 1.50% Portfolio Arithmetic Mean Return 6.18% 4.18% Portfolio Standard Deviation 12.29% 12.29% Portfolio Long -Term (Geometric) Expected Real Rate of Return 5.55% 3.46% Assumed Investment Expenses 0.40% 0.40% Portfolio Long -Term (Geometric) Expected Real Rate of Return, Net of Investment Expenses 5.15% 3.06% Portfolio Long -Term Expected Real Rate of Return, Net of Investment Expenses 4.14% Portfolio Standard Deviation 14.16% Valuation Assumptions Chosen by PERSI Board Long -Term Expected Real Rate of Return, Net of Investment Expenses 4.05% Assumed Inflation 2.300/ Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 6.35% C[:1 NOTE 15 - NOTE 16 - NOTE 17 - NOTE 18 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 151 Pension Plan (Continued) Discount Rate: The discount rate used to measure the total pension liability was 6.35%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans' net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the Employer's proportionate share of the net pension liability to changes in the discount rate: The following presents the Employer's proportionate share of the net pension liability calculated using the discount rate of 6.35 percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (5.35 percent) or 1 -percentage -point higher (7.35 percent) than the current rate: Employer's proportionate share of the net pension liability (asset) Current 1 % Decrease Discount Rate 1 % Increase (5.35%) (6.35%) (7.35%) 41515,408 (129,895) $ (31937,742) 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.persiJdaho.gov. Payables to the pension plan: At September 30, 2021, the City reported payables to the defined benefit pension plan of $0 for legally required employer contributions and $0 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. Risk Management The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of substantial losses. The City has established a Health Plan Trust for medical benefits provided to City employees and covered dependents. Health benefits were self-funded up to a specific stop loss amount of $50,000, and an aggregate attachment point of $670,973 for 2021. 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 $83,590 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. Subsequent Events Subsequent events were evaluated up to March 28, 2022, the date the financial statements were available to be issued. Prior Period Adjustments Through September 30, 2020, the City reported the Chubbuck Health Plan Trust as a Fiduciary fund. During the fiscal year ending September 30, 2021, the City determined the appropriate presentation for this entity, a Public Entity Risk Pool, is as an enterprise fund. Therefore, the beginning net position of Business -Type activities and Fiduciary Funds have been restated. Net position as of September 30, 2020 has been adjusted as follows: Net Position, Beginning of Year, as previously restated Re -presentation of Chubbuck Health Plan Trust as an Enterprise Fund Net Position, Beginning of Year, as restated 47 Business Type Activities Fiduciary Funds $ 40,923,557 $ 521,770 478,528 (478,528) 41,402,085 43,242 REQUIRED SUPPLEMENTARY INFORMATION ,; CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERALFUND YEAR ENDED SEPTEMBER 30, 2021 Resources Property taxes Franchise fees Intergovernmental income 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 Planning and development Parks and recreation Community services 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 Original $ 4,136,112 208,000 1,232,000 151000 100,000 1,645,447 50,000 751000 59,299 7,520,858 625,604 3,951,099 1, 825,245 370,110 771000 71,800 7,520,858 0 Final $ 4,136,112 208,000 1,232, 000 15,000 1001000 1,645,447 50,000 75,000 59,299 7, 520, 858 625,604 3,951,099 1, 825,245 370,110 677,000 71,800 7,520,858 Actual Amounts $ 4, 000, 938 195,483 18521334 14,275 290,288 2,334,053 5,009 116,163 89,735 4,698 2,614 54,793 79601383 1, 072,664 3,550,335 1,738,732 395,491 722,129 91,539 17521815 9,323,705 (363, 322) 911,372 911,372 5481050 2,364,682 $ 21 912,732 Variance Positive (Negative) $ (1351174) (12,517) 620,334 (725) 190,288 688,606 (44, 991) 41,163 30,436 4,698 2,614 54,793 1,439,525 (447,060) 400,764 86,513 (25, 381) (45,129) (19,739) (1,752,815) (1,8021847) (363,322) 911,372 911,372 548,050 2,364,682 $ 2,9121 732 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2021 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 Actual Amounts Variance Positive (Negative) $ 950,000 $ 950,000 $ 8941610 $ (551390) 7251000 725,000 11389,170 6641170 125,000 125 000) 77,000 1,877,000 697, 500 7,500 9,250 5,000 12,500 143,250 658,500 158,000 160,500 25,000 1,877,000 50 125,000 77,000 1,877,000 697,500 7,500 9,250 5,000 12,500 143,250 658,500 158,000 160,500 25,000 1,877,000 28,514 2,312,294 755,382 7,173 14,789 9,789 47,788 5,458 478,733 71907 1,129,307 2,566,327 (254,033) - 838,302 834,697 580,664 (2,953,129) $(213721 465) (, (48,486) 435,294 (57,882) 327 (5,539) (4,789) (35,288) 137,792 179,767 40,093 (968, 807) 25,000 (689,327) (254,033) 838,302 (3,605) 834,697 580,664 (2, 953,129) $(213721 465) Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years* 2021 2020 Employer's portion of the net pension liability (asset) 0.001644693 0.001641301 Employer's proportionate share of the net pension liability (asset) $ (129,895) $ 3,811,318 Employer's covered -employee payroll $ 6,112,874 $ 5,820,108 Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll -2.12% 65.49% 2019 0.001625296 $ 1,855230 , $ 5,496,835 33.75% 2018 0.001606905 $ 2,370,213 $ 5,142,733 46.09% 2017 2016 0.001542148 0.00145924 $ 2,423,992 $ 4,764,551 50.88% $ 2, 958,104 $ 4, 225,127 70.01 2015 0.001459012 $ 1,921,281 $ 4,072,262 47.18% Plan fiduciary net position as a percentage of the total pension liability 100.36% 88.22% 93.79% 91.69% 90.68% 87.2670 91.38% * 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, 2021 51 Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years 2021 Statutorily required contribution $ 741,954 Contributions in relation to the statutorily required contribution $ 741,954 Contribution (deficiency) excess $ - Employer's covered -employee payroll $ 6,154,443 Contributions as a percentage of covered -employee payroll 12.06% tziy�i7 $ 709,029 $ 7091029 $ 610097444 11.80% 2019 $ 643,275 $ 643,275 $ 5,5971869 11.49% 2018 $ 594,166 $ 594,166 $ 5,3187395 11.17% 2017 $ 545, 551 $ 545,551 $ 4,5681504 11.94% 2016 $ 031931 $ 031931 $ 4,536,572 11.11% 2015 $ 1058 $ 469,058 $4, 225,217 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, 2021. 52 CITY OF CHUBBUUK, 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 $363,322 in the general government due to an increase of general expenditures for the expansion and remodel of office space. The City received $911,372 in proceeds from Certificates of Participation and used available fund balances to cover the expenditures over budget. Highway Streets, and Roads The City had expenditures in excess of budget of $254,033 due to an increase of expenditures related to and capital outlays. The City received $838,302 in proceeds from Certificates of Participation to cover the expenditures over budget. 53 OTHER SUPPLEMENTARY INFORMATION 54 Cash ASSETS FUND BALANCES Committed, reported in: Special revenue fund CITY OF CHUBBUCK, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Law Fire Control Enforcement Park Impact Fees Impact Fees Impact Fees Special Revenue Street Juvenile Road Total Guarantee Fund Referral Court Fund Fund Projects Fund Parks Nonmajor Fund Funds $ 100,034 $ 871385 $ 274,710 $ 404,254 $ 5,106 $ 149,525 $ 169,340 $ 376,460 $ 1,566,814 $ 100,034 $ 87,385 $ 274,710 $ 404,254 $ 5,106 $ 149,525 $ 169,340 $ 376,460 $ 1,566,814 55 CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 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 $ 80 $ 70 $ 121 $ 186 $ 6 $ 143 $ 215 $ 514 $ 11335 Donations - - - - - - - 67800 61800 Other revenues 521388 447047 2201857 2767686 - 501781 - 77842 6527601 521468 447117 2203978 2767872 6 50,924 215 151156 6607736 EXPENDITURES Other purchased services - - - - - 425 - 41000 47425 425 - 47000 47425 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 521468 441117 2207978 276,872 6 50,499 215 11,156 656,311 OTHER FINANCING SOURCES Transfers in (out) - - 39,872 - - - - (39,872) - NET CHANGE IN FUND BALANCES 52,468 447117 2607850 2761872 6 507499 215 (28,716) 656,311 BEGINNING FUND BALANCE 47,566 431268 137860 1271382 51100 997026 1697125 4057176 9107503 ENDING FUND BALANCE $ 100,034 $ 87,385 It 274,710 $ 404,254 $ 5,106 $ 149,525 $ 169,340 $ 376,460 $ 1,566,814 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2020 ASSETS Current assets Cash and cash equivalents Noncurrent assets Restricted assets Capital assets Accumulated depreciation LIABILITIES Current Liabilities Accounts payable Noncurrent Liabilities NET POSITION Net investment in capital assets Unrestricted Employee Central Health it Garage Benef Fund Fund 346,128 261,085 - (254, 860) - 61225 - 2021 Totals $ 346,128 346,128 261, 085 (254, 860) 6,225 2020 Totals $ 345, 742 345,742 261,085 (253, 574) 7,511 6,225 346,128 352,353 353,253 28,983 28,983 28,983 28, 983 28,983 28,983 28,983 - 28,983 6,225 - (28,983) 346,128 $ 28 983 (22, 758) $ 3467128 6,225 317,145 $ 3231370 , 7,511 324, 339 $ 3311850 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 OPERATING REVENUES Interest earnings Service revenue OPERATING EXPENSES Administration Personnel benefits Repairs and maintenance Supplies and tools Travel, meetings, and training Fuels and lubricants Utilities Depreciation OPERATING INCOME (LOSS) CHANGES IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Central Garage Fund 360, 800 360, 800 5,534 19, 046 21853 3,182 1,236 67528 1,287 369, 666 Employee Health Benefit Fund $ 455 455 2021 2020 Totals Totals $ 455 3607800 361,255 19, 046 332, 853 3,182 1,236 6, 528 69 17287 78,709 80,106 285, 277 5, 322 20,420 28,435 2, 676 30,219 10, 685 1,769 3841803 (8, 866) 386 (8,480) (304, 697) (8,866) 386 (8,480) (304,697) $ (22,758) 345, 742 331, 850 636, 547 $ 346,128 $ 323, 370 $ 331, 850 CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2021 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2020 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: Cash and cash equivalents Cash and cash equivalents - Restricted OPERATING INCOME (LOSS) Central Garage Fund $ 360,800 (355,266) (5,534) Employee Health Benefit' Fund $ 455 (69) 386 2021 $ 361,255 (355, 335) (5,534) 386 386 2020 $ 80,106 (358,664) (5,322) (283,880) 386 (283,880) 345,742 345,742 629,622 $ 346,128 $ 346,128 SH RECONCILIATIONS OF NET INCOME TO NET CA PROVIDED BY OPERATING ACTIVITIES 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 59 Central Garage Fund (8,866) $ 1,286 7,580 8,866 Employe e Health Benefit Fund $ $ 346,128 346,128 $ 346,128 $ 346,128 $ 345,742 $ 629,622 $ 629,622 2021 2020 1,287 7,579 8,866 $ (304,697) 1,769 19,048 20,817 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2021 Resources Property taxes Interest income Donations Other resources Amounts available for appropriations Charges to appropriations Street guarantee fund Juvenile referral fund Court fund Road projects fund Parks fund Total charges to appropriations NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Original Final Actual Amounts 1,335 6,800 652,601 660,736 425 4, 000 4,425 656, 311 $ 1, 566, 814 Variance Positive (Negative) 1,335 6,800 652,601 660,736 (425) (4,425) 656, 311 910,503 $ 1, 566, 814 STATISTICAL SECTION m 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. C�� Governmental activities: Invested in capital assets, net of related debt Restricted Unrestricted Total governmental activities net position Business -type activities Invested in capital assets, net of related debt Restricted Unrestricted Total business -type activities net position Primary government Net investment in capital assets Restricted Unrestricted Total primary government net position 2012 $ 7,706,251 $ 2,896,706 $ 101602,957 $ $ 4,402,647 $ 169,081 11,985,356 $ 16,557,084 $ 2013 2014 City of Chubbuck Net Position By Components Last Ten Fiscal Years (Accrual -Basis Accounting) 2015 10,153,123 $ 11,396,599 $ 10,137,975 $ 3,592,593 41130,936 4,532,072 13,745,716 $ 15,527,535 $ 14,670,047 $ 5,460,743 $ 6,091,493 $ 6,086,514 $ 65,781 167,481 165,181 14, 0 06160S 16,145t285 18,4601974 19,633,129 $ 22,404,259 $ 24,712,669 $ 2016 2017 2018 2019 2020 2021 11,138,839 $ 16,829,117 $ 24,019,218 $ 26,473,293 $ 281622,260 $ 321641,830 6,181,447 3,2121484 5471753 (381,048) (11695,666) (1,0911874) 17,320,286 $ 20,0411601 $ 24,566,971 $ 26,092,245 $ 26,926,594 $ 31,549,956 6,814,991 $ 91217,942 $ 11,612,979 $ 11,876,681 $ 16,363,939 $ 41,9321621 166, 731 168,131 1154,850 166,100 167,200 168,150 21,272,113 22,0011056 21,704,355 25,076,744 24,496,821 5,378,964 28,253,835 $ 31,3871129 $ 33,4821184 $ 371119,525 $ 41,027,960 $ 47,479,735 $ 12,108,898 $ 15,613,866 $ 17,488,092 $ 16,224,489 $ 17,9531830 $ 26,047,059 $ 35,632,197 $ 381349,974 $ 441986,199 $ 74,574,451 169,081 165,781 167,481 165,181 166,731 168,131 1154,850 166,100 167,200 168,150 14,882,062 17,599,198 20,2761221 22,993,046 27,453,560 251213,540 22,252,108 24,695,696 22,801,155 41287,090 $ 27,160,041 $ 331378,845 $ 371931,794 $ 391382,716 $ 45,5741121 $ 51,428,730 $ 581049,155 $ 63,211,770 $ 67,954,554 $ 791029,691 City of Chun DUCK Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2012 2013 2014 2015 2016 2017 2018 2019 Expenses Governmental activities: General Government $ 235,127 $ 352,910 $ 443,813 $ 5420494 $ 896,297 $ 8801217 $ 862,299 $ 8361698 Law enforcement 21576,916 21782,655 21771,003 218681345 31188,507 31310,717 31447,266 31492,557 Fire Control 11307,735 11313,575 11335,240 11519,108 11360,246 11307,106 11417,951 11556,572 Building Inspection 158,409 1631631 172,439 172,946 1991277 199,336 217,171 246,220 Street 11087,455 11122,746 11450,965 11524,819 11487,702 11426,385 11293,629 11210,550 Parks & Recreation 534,574 494,692 484,041 5291372 591,638 601,054 6531878 623,328 Health and welfare 31,462 39,552 51,165 411171 76,884 831293 901621 801049 Otherspecialfunds 171113 51150 350 - 20,196 150 11600 17,100 CIAWWCAuthority - 41574 2,930 2,930 609,036 609,036 - - Total governmental activities expenses 5,9481791 612791485 61711,946 7,201,185 81429,783 81417,294 71984,416 810631075 Business -type activities: Water 11398,887 11466,297 11560,406 11781,501 11793,535 11726,443 21111,162 21028,807 Sewer 11847,034 21072,020 11709,310 21200,476 21319,135 21363,009 21649,245 21705,251 Sanitation 11132,300 11116,071 11219,283 1,0601218 11221,934 11637,470 11732,030 11626,740 Health Plan Trust - - - - - CIAWWCAuthority - - - - - - 6091036 6091036 Total business -type activities program expenses 413781221 41654,388 41488,999 5,0421195 51334,604 51726,922 71101,473 61969,834 Total primary government program expenses 101327,012 10,933,873 11,200,945 12,243,380 131764,387 1411441216 1510851889 151032,909 2020 1,537,463 3,896,661 1,939,749 28,004 2,042,497 636,713 88,129 43,181 2021 1,348,508 3,288,219 1,802,233 371,732 1,764,251 802,354 91,539 4,425 10,212,397 9,473,261 2,440,008 3,174,444 1,916,682 609,063 2,742,104 2,868,693 1,969,580 1,346,956 306,104 8,140,197 9,233,437 18, 352,594 181706J698 Program Revenues Governmental activities: Chargesforservices: General Government Law enforcement Fire control Street Parks & Recreation CIAWWC Authority Operating grants and contributions Capital grants and contributions Total governmental activities program revenues Business -type activities: Charges for services: Water Sewer Sanitation Health Plan Trust CIAWWC Authority Operating grants and contributions Capital grants and contributions Total business -type activities program revenues Total primary government program revenues Net (Expense) / R ev e n u e Governmental activities Business -type activities Total primary governmental net (expense)/revenue 2012 2013 City of Chuhhuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2014 2015 2016 2017 2018 2019 2020 2021 1331808 2031578 134,555 298,505 3651049 414,674 323,186 3991415 342,244 3791116 35,311 28,918 31,942 291940 34,221 281081 27,335 2101650 191,317 232,992 197,261 2111041 214,172 237,675 1761925 61,832 51009 131165 17,468 11292 81493 61534 41955 7,203 91762 101589 121728 1491681 14,758 61125 16,889 101980 431612 1281818 33,200 48,000 431890 71,329 84,653 1791095 652,897 213451551 9161767 216671268 2,3541109 31644,635 11019,354 11253,033 21253,204 394,604 5281668 407,950 11505,606 31326,755 311091934 41482,935 11841,236 213451504 51035,597 2,386,464 21582,932 21422,542 21680,920 2,7831945 21728,684 21896,320 2,983,977 21944,986 31167,282 3,2281353 31182,335 310931116 315831861 31657,738 3,803,714 31979,134 41229,957 41163,168 41403,367 1,6251302 11649,604 1,727,680 11731,740 2,169,627 2,1921420 11978,239 11930,472 11952,196 21044,405 11484,058 _ - 66,915 21,960 95,330 54,900 11,328 - 134,662 93,730 - - - _ 2281000 11045,754 21785,144 31228,076 7,2401119 7,414,871 712431338 81007,849 81611,310 81859,480 91242,338 101212,120 11,940,824 141382,088 7,634,723 719431539 71651,288 91513,455 11,938,065 1119691414 13,725,273 12,053,356 14,286,328 19,417,685 (5,554,187) (51750,817) (61303,996) (51695,579) (51103,028) (51307,360) (31501,480) (61221,839) (71866,893) (41437,664) 2,8611898 21760,483 21754,339 21965,654 312761706 31132,558 21140,865 312421286 318001627 51148,651 (2,692,289) (21990,334) (31549,657) (21729,925) (11826,322) (21174,802) (1,360,615) (21979,553) (41066,266) 7101987 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 Otherrevenue 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 2012 4,594,553 201,128 908,227 52,546 36,797 17,223 2,683,248 18,486 8,512,208 32,121 1,125,220 10,800 1,168,141 9,680,349 2013 4,982,426 192,151 955,679 90,843 60,367 34,788 2,254,771 89,066 228,000 644 261,081 2,400 264,125 9,152,216 2,958,021 3,137,274 4,030,039 3,024,608 $ 61988,060 $ 61161,882 2014 5,292,450 203,790 903,149 66,152 1651 11,154 1,286,887 14,366 (3,000) 228,000 8,063,599 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2015 2016 2017 5,296,480 513661613 516421004 51975,483 198,493 1991194 201,328 2031950 1,021,666 1,311,704 11323,581 11373,948 182,445 1601617 97,869 78 76,828 90,432 981064 157,760 1861953 36,711 735,459 18,038 19,282 - 54,759 8,701,242 9,061,026 1061283 1051808 41,828 7661042 763,697 199,888 534,080 - - 6401363 6,653,333 7,753,267 574 - - 13,217 - - - 2,530 86,100 31000 100 - 161791 21630 86,100 8,0801390 61655,963 718391367 1,759,603 2,771,130 $ 4,530,733 8,028,674 736 736 8,029,410 957,754 2,650,239 2,721,314 2,968,284 3,362,806 3,133,294 $ 31926,038 $ 61013,045 $ 51854,608 7,965,788 4,000 11,252 15,252 7,981,040 4,464,308 2,156,117 $ 61620,425 2019 2020 2021 61499,369 711231630 41790,711 189,494 1861818 1951483 1,403, 606 11187,121 31241,504 182,445 1601617 97,869 78 6,345 - 1861953 36,711 735,459 (534,080) - - 719271865 8,701,242 9,061,026 1061283 1051808 24,178 - 21000 800,418 534,080 - - 6401363 107,808 824,596 815681228 818091050 91885,622 11706,026 834,349 41623,362 3,8821649 319081435 519731247 $ 51588,675 $ 41742,784 $ 10,5961609 General fund Unassigned Total General Fund All Other Governmental Funds Committed Unassigned: Special revenue funds Total all other governmental funds 2012 2013 City of ChubDUCK Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2014 2015 2016 $ 21348,830 $ 2,708,737 $ 2,933,821 $ 2,952,093 $ 3,410,321 21348,830 21708,737 21933,821 21952,093 31410,321 632,837 $ 632,837 490,894 511,696 554,175 565,911 2017 2018 2019 2020 2021 $ 3,939,114 $ 1,239,050 $ 107,771 $ (589,351) $ 540,267 31939,114 112391050 1071771 (589,351) 5401267 WWW 453,040 516,555 658,913 910,503 1,566,814 $ 4901894 $ 511,696 $ 554,175 $ 565,911 $ 453,040 $ 516,555 $ 658,913 $ 910,503 $ 11566,814 67 Revenues• Property taxes and sales tax Franchise fees Intergovernmental Court Revenue Parks revenue License, permits and fines Grants Fire protection and prevention Leases and rents Interest income Donations Charges for services Otherrevenues Total Revenues 2012 $ 4,567,959 201,128 908,227 2,399 133,808 27,892 210,650 52,546 36,797 15,720 4,135 18,486 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fisca I Years (Modified Accrual -Basis of Accounting) 2013 $ 4,984,949 192,151 955,679 1,720 203,578 302,500 191,317 90,843 60,367 54,318 3,235 89,066 6,1791747 7,1291723 2014 2015 2016 2017 2018 2019 $ 5,295,493 203,790 903,149 2,668 134,555 14,800 232,992 66,152 60,651 18,400 4,535 14,366 6,951,551 $ 5,349,772 198,493 1,021,666 35,311 5,402 219,868 466,000 197,261 78,637 76,828 38,000 4,360 41,827 7,733,425 $ 5,375,566 199,194 1,311,704 28,918 7,629 289,199 248,290 211,041 75,850 90,432 23,600 2,960 19,063 7,883,446 $ 5,627,360 201,328 1,323,581 31,942 10,733 320,860 336,433 214,172 93,814 98,064 40,149 12,975 65,897 $ 5,930,753 203,950 1,373,948 29,940 7,729 231,180 43,629 237,675 92,006 157,760 41,024 155,117 86,449 8,377,308 8,591,160 $ 6,405,974 189,494 1,403,606 34,221 8,670 308,615 109,076 176,925 90,800 182,445 70,019 23,556 184,022 9,187,423 2020 7,131,017 186,818 1,187,121 28,081 2,409 220,174 585,950 61,832 122,070 160,617 66,947 5,008 249,999 10,008,043 2021 $ 4,895,548 195,483 3,241,504 27,335 14,275 262,953 2,334,053 5,009 116,163 97,869 11,498 11,107 720,616 11,933,413 Expenditures- General government Law enforcement Fire control Building inspection Street Parks and recreation Health and welfare Street guarantee fund Courtfund Parks fund Capital outlays CIAWWC Authority Total Expenditures Excess (deficiency) of Revenues over (under) Expenditures City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 214,382 3261399 393,539 4831135 5741204 4961074 5801806 621,568 11303,835 11072,664 21494,222 21669,035 21695,807 21843,478 2,960,661 31062,347 3,2871172 31354,522 31507,675 3550,335 1,174, 659 11211,430 11234,101 11431,180 1,213, 866 11181,308 113001583 11463,484 11652,703 11738,732 1581409 1631631 172,439 174,432 181,199 1861059 212,747 244,749 81913 395,491 11035,804 11054,574 11356,339 11365,190 11336,127 11270,359 11136,919 11054,240 11722,677 11437,020 4881874 437,882 442,246 4981932 5131091 502,709 552,176 530,705 5091997 722,129 31,462 39,552 511165 41,171 76,884 83,293 901621 801049 88,129 911539 51000 - - - - - 21780 150 350 - 11500 150 11600 - - 14,333 - - - 181696 - - 171100 43,181 41425 225,467 9681502 365,442 409,060 333,207 9531944 41160,478 21806,886 11771,351 21882,122 41574 21930 4581930 230,930 21930 - - - - 51840,392 61880,729 61714,358 71705,508 71440,365 71739,173 11,323,102 1011731303 10,608,461 111894,457 339,355 248,994 237,193 27,917 443,081 638,135 (2,731,942) (985,880) (600,418) 38,956 City of Chun DUCK Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Other financing sources (uses): Proceeds from note payable - 1751281 155,468 11,680 21930 - - - - - Principal payments on leases - - - - - - - - - Principal payments - (249,263) (154,929) - - (236,050) - - - - Proceeds from certificate of participation - - - - - - - - 152,278 1,749,674 Interest expense - (51330) - - - - (41000) (31869) (31737) (31605) Proceeds from sale of assets 17,223 42,796 111154 21,153 23,953 131837 991393 828 61345 - Transfers in (out) - - (31000) - - - - - - Total other financing sources (uses) 17,223 (36,516) 81693 32,833 26,883 (222,213) 95,393 (31041) 154,886 11746,069 Net Change in Fund Balances 356,578 2120478 2451886 60,750 4691964 4151922 (21636,549) (988,921) (445,532) 1,7851025 Beginning Fund Balances 21625,090 21987,153 3,199,632 31445,518 31506,268 31976,232 41392,154 11755,605 766,684 322,056 Ending Fund Balances $ 21981,668 $ 31199,632 $ 30445,518 $ 31506,268 $ 31976,232 $ 41392,154 $ 11755,605 $ 766,684 $ 321,152 $ 21107,081 Local Tax Revenues Highway Streets Fiscal Year As of 2021, sales tax apportionment will Property Tax Franchise Tax &Road 2012 $ 40118,011 $ 201,128 $ - 2013 41497,017 192,152 - 2014 41781,207 203,790 114,496 2015 41813,441 198,493 - 2016 41164,281 199,194 645,147 2017 41367,685 201,328 671,658 2018 41342,621 203,950 962,076 2019 4,8201932 189,494 933,810 2020 51331,506 186,818 8531514 2021 $ 41895,548 $ 195,483 $ 894,610 be included with shared sales tax. City of Chubbuck General Government Tax and Intergovernmental Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) Sales Tax $ 449,949 487,932 514,286 536,331 566,139 588,016 626,056 651,323 945,996 Total Local Taxes Highway User's State Liquor Tax Revenue $ 41769,088 $ 149,070 $ 451,302 51177,101 154,777 463,463 516230276 152,877 467,297 51548,265 148,641 494,812 51574,761 15 8, 211 664,004 51828,687 160,066 674,106 6,134,703 164,971 6850345 61595,559 184,041 719,995 71317,834 205,579 718,902 $ 5,9851641 $ 243,994 $ 941,626 71 Intergovernmental Revenues Court Revenue $ 41,915 38,277 30,815 35,312 28,918 31,942 29,940 34,221 28,081 $ 27,335 Road & Bridge $ 59,652 72,887 66,326 112,443 198,466 175,062 174,663 121,341 69,460 $ 447,544 Shared Sales Tax $ 206,288 226,276 185,833 265,770 291,023 314,347 348,969 378,229 193,180 $ 1,608,340 61 Total Intergovernmental Taxes 908,227 955,680 903,148 1,056,978 1,340,622 1,355,523 1,403,888 1,437,827 1,215,202 3,268,839 Total Taxes $ 5,677,315 6,132,781 6 6 ,526,424 ,605,243 6,915,383 7 7 ,184,210 ,538,591 8,033,386 8,533,036 $ 9,254,480 Local Taxes as a Percentage of Tota I City of Chun DUCK Assessed Valuation and Tax Rate Last Ten Fiscal Years Real and Personal Exemptions Home Exemptions Personal Total Assessed Actual Tax Rate Per $1,000 Fiscal Year Tax Roll Utilities Tax Roll Actual Sub Roll Owner's Property Value Levy Rate Value 2012 $ 446,262,451 $ 71358,180 $ 488,182 $ 225,397,223 $ - $ 679,506,036 0.009324266 $ 9.32 2013 454,554,481 71573,803 513,109 203,675,558 638,203 666,955,154 0.009969299 $ 9.97 2014 459,147,628 71502,193 11138,795 236,839,910 - 7041628,526 0.009967676 $ 9.97 2015 4611440,210 71884,559 11017,251 238,171,372 81,774 7081595,166 0.009933799 $ 9.93 2016 475,051,058 71702,297 1,6971797 251,008,396 81,774 735,541,322 0.010140122 $ 10.14 2017 507,1827903 81152,805 469,490 263,554,022 81,744 779,440,964 0.010188661 $ 10.19 2018 524,061,262 81420,799 21493,034 275,948,575 - 810,923,670 0.010636971 $ 10.64 2019 638,286,498 81626,813 2211259 314,458,115 - 961,592,685 0.009459658 $ 9.46 2020 728,136,576 91592,530 41293,710 342,427,509 - 11084,450,325 0.006863105 $ 6.86 2021 * $ 807,089,731 $ - $ - $ - $ - $ 807,089,731 0.008121184 $ 8.12 *Preliminary Assessment Values Note: Twenty percent of the property in the county is reassessed annually. The County assesses property at 100% of market value. Tax rates are per $1,000 of assessed value. 72 City of Chubb CK Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years (per $1,000 of assessed value) City of Chubbuck Overlapping Rates County Road & Ambulance Service School District 25 Combined Levy Year Base Rates Bannock County Rates Bridge Rates Abatement Rates Portneuf Library Rates Rates Rates Rates 2012 $ 9.32 $ 4.82 $ 0.41 $ 0.13 $ 0.61 $ 0.24 $ 3.90 $ 19.43 2013 9.97 4.92 0.47 0.05 0.61 0.40 4.49 20.91 2014 9.97 5.30 0.48 0.05 0.57 0.40 4.14 20.91 2015 9.93 5.28 0.85 0.04 0.58 0.40 4.42 21.50 2016 10.14 5.24 0.73 0.03 0.61 0.40 3.94 21.09 2017 10.19 5.37 0.67 0.03 0.58 0.40 3.88 21.12 2018 10.64 5.62 0.47 0.03 0.61 0.40 3.85 21.62 2019 9.46 4.85 0.53 0.03 0.52 0.35 3.33 19.06 2020 6.86 3.68 0.50 0.03 0.53 0.34 3.19 15.13 2021 $ 8.12 $ 4.18 $ 0.45 $ 0.03 $ 0.50 $ 0.32 $ 2093 $ 16.52 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 IDAHO CENTRAL CREDIT UNION PINE RIDGE MALL JC LLC 4200 HAWTHORNE LLC WAL MART REAL ESTATE SHJH LLC GRACE AT CHUBBUCK LLC AGREE LIMITED PARTNERSHIP RATLIFF, GARY CARMIKE CINEMAS INC. HD DEVELOPMENT OF MARYLAND INC FNLALL LLC SHOPKO REAL ESTATE LLC EMERITOL RIDGE WIND LLC PINE RIDGE IDAHO LLC GOLDING FAMILY LIMITED *Estimated Assessment Values Source: Bannock County Assessors Ofi~ice City of chubbuck Principal Taxpayers September 30, 2021 2021 Assessed Type of Business Valuation Rank FINANCIAL INSTITUTE $ 46,354,000 1 RETAIL 14,571,000 2 REAL ESTATE HOLDINGS 12,345,000 3 RETAIL 10,005,000 4 APARTMENTS 91988,000 5 ASSISTED LIVING 91985,000 6 REAL ESTATE INVESTMENTS 81539,000 7 REAL ESTATE 81158,000 8 ENTERTAINMENT 71101,000 9 REAL ESTATE DEVELOPMENT 51839,000 10 RETAIL - - DATABASE - - REAL ESTATE HOLDINGS - - Total Top Ten $ 132,885,000 Percentage of Total Assessed Valuation Assessed Valuation 5.74% $ 15,640,790 1.81% 12,380,277 1.53% - 1.24% 91709,957 1.24% - 1.24% - 1.06% - 1.01% 31527,002 0.88% - 0.72% 71105,536.00 0.00% 19,723,410 0.00% 51204,568 0.00% 41242,947 0.00% 31684,948 0.00% 31153,834 16.46% $ 847373,269 2012 2 3 4 9 5 1 6 8 10 Percentage of Total Assessed Valuation 2.30% 1.82% 0.00% 1.43% 0.00% 0.00% 0.00% 0.52% 0.00% 1.05% 2.90% 0.77% 0.62% 0.54% 0.46% 12.42% Fiscal Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Governmental Activities Capital Lease 27,739 Sanitation Water Notes 1,382,774 1,265,080 1,130,594 1,076,827 998,848 927,972 8471636 764,418 678,292 588,999 City of Chubbuck Ratios of Outstanding Debt by Type Last Ten Fiscal Years (accrual basis of accounting) Sewer Bond Business Type Activities Notes Water Bond DEQ 11830,000 2671790 11720,000 251,448 116101000 234,833 11495,000 2171757 11380,000 200,381 11260,000 1811814 11135,000 21746,190 11010,000 71530,708 880,000 81077,582 745,000 8,2781883 Sewer Note DEQ 17,665,819 16,873,075 16,436,562 16,363,232 15, 71931 14,445,385 13,592,841 12,740,295 11,679,735 11,035,206 Note: The estimated populations for years 2012 and 2014 were not available and so the most current estimate was used for these years. Source: (1) U.S. Census 75 Total Primary Government 21,146,383 20,137,342 19,411,989 19,152,816 17, 877,160 16, 815,171 18,321,667 22,045,421 21,315,609 20, 648,088 (1) Estimated Per Population Capita 14,067 11503 14,125 11426 14,125 11374 14,229 11346 14,517 11231 14, 644 11148 14,869 11232 15,316 11439 16,268 11310 16, 608 11243 City of Chubbuck Revenue Bond Coverage Water Fund Last Ten Fiscal Years Debt Service Requirements (3) Net Revenue Available for Debt Fiscal Year Gross Revenue (1) Operating Expense (2) Service Principal Interest 2012 21411,854 11222,469 11189,385 100,000 60,068 2013 21583,576 11263,607 11319,969 110,000 58,338 2014 214230116 11351,349 11071,767 110,000 56,574 2015 21680,920 11532,822 11148,098 115,000 52,863 2016 21783,945 11535,492 11248,453 115,000 55,514 2017 21728,684 11472,240 11256,444 120,000 45,443 2018 21896,320 11832,479 11063,841 125,000 341175 2019 21983,977 11744,722 11239,255 125,000 32,182 2020 21944,986 11959,268 985,718 130,000 28,420 2021 31167,282 11951,885 11215,397 135,000 24,507 (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. 76 Total 160,068 168,338 166,574 167,863 170,514 165,443 159,175 157,182 158,420 159,507 Coverage 7.43 7.84 6.43 6.84 7.32 7.59 6.68 7.88 6.22 7.62 Pledge of Revenues Coverage Requirement (4) 5.94 6.27 5.15 5.47 5.86 6.08 5.35 6.31 4.98 6.10 City of Chubbuck Statistical Information Water Fund September 30, 2021 Schedule %J Water Revenue and Production For Residential, Commercial, and Government Accounts Total Revenue $ 311671282 Estimated number of active customers 4 700 Total water produced (gallons) Schedule of Water Rates Monthly Base Fee (by meter size) , 1, 076,476 Size Price Circuit Breaker 1" or less $ 26.40 $ 18.48 1.5 " 76.01 2" 117.65 3" 244.70 4" 401.06 6" 810.37 g" 11269.13 10" 11938586 Volumetric charge: $1.27 per 1,000 gallons metered water. Volumetric charge for circuit breaker: $.89 per 1,000 gallons metered water. 77 CITY OF CHUBBUCK, IDAHO Ten Largest Water System Customers For The Fiscal Year Ended September 30, 2021 (per 1,000 gallon used) of Tota Top Ten % of Total Customer Business Type Rank Usage Consumers Usage Pine Ridge Mall JC LLC Shopping Center 1 43,718 39.2% 4.1% Circle Inn Trailer Park Mobile Home Park 2 10,547 9.5% 1.0% Idaho Central Credit Union Vacant Resident 5102 Hawthorne Seven Synergy LLC Pheasant Ridge HOA Inc. Pine Ridge Mall JC LLC Camelot Estate Pheasant Ridge HOA Inc. Pheasant Ridge HOA Inc. Total Top Ten Consumers Total Usage Banking Private Property Staffing Services Residential Development Shopping Center Mobile Home Park Residential Development Residential Development 3 10,057 9.0% 0.9% 4 8,900 8.0% 0.8% 5 7,647 6.9% 0.7% 6 6,596 5.9% 0.6% 7 6,129 5.5% 0.6% 8 6,098 5.5% 0.6% 9 5,979 5.4% 0.6% 10 5,729 5.1% 0.5% 111,400 100.0% 1,076,476 10.3 City of ChubbuCK Statistical Information Sewer Fund September 30, 2021 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue Schedule of Sewer Rates $ 4,403,367 Monthly Base Fee Regular Circuit Breaker Residential $ 49.10 $ 34.37 NWSI Residential 10.45 - Commercial rate for businesses North of the Interstate is $6.94 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $8.14 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 :� CITY OF CHUBBUCK SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Fiscal Year Ended September 30, 2021 Federal Grantor/Pass-Through Grantor/Program Title U.S. Department of Transportation Highway Planning and Construction Cluster: Passed through the Idaho Transportation Department Highway Planning and Construction (Federal -Aid Highway Program) Total Highway Planning and Construction Cluster Highway Safety Cluster: Passed through the Idaho Transportation Department State and Community Highway Safety National Priority Safety Programs Total Highway Safety Cluster Total U.S. Department of Transportation U.S. Department of the Treasury Coronavirus Relief Fund Total U.S. Department of the Treasury Total Expenditures of Federal Awards Assistance Listing No. 20.205 Grant Number V159410 20.600 SAL2101 20.600 SDD2103 20.600 SSB21EB 20.616 SOP2IEA 21.019 20-1892-0-1-806 21.019 20-1892-0-1-806 21.019 204892-04-806 21.019 204892-0-1-806 21.019 204892-04-806 81 See accompanying notes Expeditures Subrecipients $ 2,207 1,399 71600 9,807 49,199 58,096 20,180 79,833 1, 645,447 1,852,755 $ 1,862,562 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, 2021. 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. Demon & Company, Chalrte>red Certified Public Accountants 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208) 232-5825 Members of Idaho Society of Certified Public Accountants Members of American Institute of Certified Public Accountants 1 ' �� C ,�i �r• � • • • , s� � ,� � � fe � I �� ��� � � �, �,i; i ,�Ems' F �* ,� ��` � ��. ��' '�, 3OMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED D IN ACCORDANCE r AUDITING ' is " j 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, 2021, 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 28, 2022. Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Chubbuck's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Chubbuck's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Chubbuck's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did not identify any deficiencies in internal control over financial reporting, that we would consider to be a significant deficiency in internal control over financial reporting. 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 28, 2022 featon SL Company, Chane>red Certified Public Accountants 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208) 232-5825 Members of Idaho Society of Certified Public Accountants Members of American Instihrte of Certified Public Accountants To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho 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, 2021. 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 N osts. Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its federal programs. 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. 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, 2021. 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 28, 2022 CITY OF CHBBUCK, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2021 SECTION I -SUMMARY OF AUDITOR RESULTS Financial Statements Type of auditor's report issued: Internal control over financial reporting Material weaknesses) identified? Significant deficiencies identified? Noncompliance material to financial statements noted? Federal Awards Internal control over major programs Material weaknesses identified? Significant deficiencies identified? Type of auditor's report issued on compliance for major programs: Any audit findings disclosed that are required to be reported in accordance with 2 CFR section 200.516(a)? Major programs Assistance Listing No. 21.019 Name of Federal Program Coronavirus Relief Fund Dollar threshold used to distinguish between type A and type B programs: Auditee qualifies as a low-risk auditee? SECTION II -FINDINGS -FINANCIAL STATEMENT AUDITS None Unmodified IAC No None reported None reported Unmodified $ 750, 000 Yes SECTION III -FINDINGS AND QUESTIONED COSTS -MAJOR FEDERAL AWARD PROGRAMS AUDIT None PRIOR YEAR FINDING NONE Deaton & Company, Chartered Cenified Public Accountants 215 North 911, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members of the Idaho Society of Cer>Stlad Pubtic Accountants Members vt the American rnoIvW vi Cert4@d Pubric Accountants March 23, 2022 To the Treasurer and Management of the City of Chubbuck, Idaho Management Comment: In planning and performing our audit of the financial statements of the City of Chubbuck as of and for the year ended September 30, 2021, in accordance with auditing standards generally accepted in the United States of America, we considered the City of Chubbuck's internal control over financial reporting (internal control) 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 the District's internal control. Our consideration of internal control is for the limited purpose and was not designed to identify all deficiencies in internal control that might be significant deficiencies or material weaknesses and, therefore, there can be no assurance that all such deficiencies have been identified. As discussed below, we identified a certain deficiency in internal control that we did not consider to be a significant deficiency, or a material deficiency but felt it was appropriate to bring to management attention Policies and Procedures — Allocation of intergovernmental expenditures Audit standards require auditors to evaluate risk of material misstatements affecting each significant audit area. The risk level is assessed at each assertion level (existence or occurrence, completeness, rights and obligations, accuracy or classification, valuation or allocation and cutoff). During the audit it was noted that various expenditures and assets purchased by the City were broken out between funds. These intergovernmental expenditures were allocated using various methods. As auditors we were not able to determine if such allocations were performed in accordance with the City's policies and procedures as we were informed that the City had no such written policies and procedures. We found that there were disagreements between some management as to how this allocation should be done. This lack of written policies and procedures over the proper allocation of intergovernmental expenditures and assets creates the risk that intergovernmental expenditures would not be allocated correctly or consistently between funds. We suggest that the City document in its current policies and procedures a written policies and procedures over the proper allocation of intergovernmental expenditures and assets. If you have any questions or need additional assistance with the above finding, please contact us Sincerely, Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members cf the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants Honorable Mayor and City Council City of Chubbuck PO Box 5604 Chubbuck, ID 83202 We have audited the financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of City of Chubbuck for the year ended September 30, 2021. Professional standards require that we provide you with information about our responsibilities under generally accepted auditing standards (and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain information related to the planned scope and timing of our audit. We have communicated such information in our letter to you dated October 6, 2021. Professional standards also require that we communicate to you the following information related to our audit. Significant Audit Findings Qualitative Aspects of Accounting Practices Management is responsible for the selection and use of appropriate accounting policies. The significant accounting policies used by City of Chubbuck are described in Note 1 to the financial statements. The City has implemented the newest accounting policies that were adopted during the year as of September 30, 2021. The City has implemented GASB Statement up to GASB statement No. 91. We noted no transactions entered into by City of Chubbuck during the year for which there is a lack of authoritative guidance or consensus. All significant transactions have been recognized in the financial statements in the proper period. Accounting estimates are an integral part of the financial statements prepared by management and are based on management's knowledge and experience about past and current events and assumptions about future events. Certain accounting estimates are particularly sensitive because of their significance to the financial statements and because of the possibility that future events affecting them may differ significantly from those expected. The most sensitive estimate(s) affecting the Government-Wide's and enterprise fund financial statements were: Management's estimate of the life expectancies of capital assets, which were based on managements' experience and like kind asset lives. We evaluated the key factors and assumptions used to develop the life expectancies of capital assets in determining that it is reasonable in relation to the financial statements taken as a whole. The financial statement disclosures are neutral, consistent, and clear. Difficulties Encountered in Performing the Audit We encountered no significant difficulties in dealing with management in performing and completing our audit. Corrected and Uncorrected Misstatements Professional standards require us to accumulate all known and likely misstatements identified during the audit, other than those that are clearly trivial, and communicate them to the appropriate level of management. Management has corrected all such misstatements. In addition, none of the misstatements detected as a result of audit procedures and corrected by management were material, either individually or in the aggregate, to each opinion unit's financial statements taken as a whole. Disagreements with Management For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during the course of our audit. Management Representations We have requested certain representations from management that are included in the management representation letter dated March 28, 2022. Management Consultations with Other Independent Accountants In some cases, management may decide to consult with other accountants about auditing and accounting matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an accounting principle to City of Chubbuck's financial statements or a determination of the type of auditor's opinion that may be expressed on those statements, our professional standards require the consulting accountant to check with us to determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with other accountants. Other Audit Findings or Issues We generally discuss a variety of matters, including the application of accounting principles and auditing standards, with management each year prior to retention as City of Chubbuck's auditors. However, these discussions occurred in the normal course of our professional relationship and our responses were not a condition to our retention. Other Matters We applied certain limited procedures to the management discussion and analysis, schedules of budget and actual, and pension schedules, which are required supplementary information (RSI) that supplements the basic financial statements. Our procedures consisted of inquiries of management regarding the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We did not audit the RSI and do not express an opinion or provide any assurance on the RSI. We were engaged to report on combining statements, which accompany the financial statements but are not RSI. With respect to this supplementary information, we made certain inquiries of management and evaluated the form, content, and methods of preparing the information to determine that the information complies with accounting principles generally accepted in the United States of America, the method of preparing it has not changed from the prior period, and the information is appropriate and complete in relation to our audit of the financial statements. We compared and reconciled the supplementary information to the underlying accounting records used to prepare the financial statements or to the financial statements themselves. We were not engaged to report on the statistical and introductory sections, which accompany the financial statements but are not RSI. Such information has not been subjected to the auditing procedures applied in the audit of the basic financial statements, and accordingly, we do not express an opinion or provide any assurance on it. Restriction on Use This information is intended solely for the information and use of City Council, mayor, and management of City of Chubbuck, and is not intended to be, and should not be, used by anyone other than these specified parties. Very truly yours, Deaton & Company, Chartered ,1— Pocatello, Idaho March 28, 2022 Joey Bowers From: Dan Christensen Sent: Monday, March 28, 2022 4:48 PM To: Joey Bowers Subject: FW: 2021 Audited Financial Statements and Certification Letter Follow Up Flag: Follow up Flag Status: Flagged From: Jennifer Mabbott <Jennifer.Mabbott@zionsbancorp.com> Sent: Monday, March 28, 2022 4:46 PM To: Dan Christensen <dchristensen@cityofchubbuck.us> Subject: RE: 2021 Audited Financial Statements and Certification Letter Hi Dan, The Audited Financials and Certification has been posted to EMMA. Thank you, Jennifer Jennifer Mabbott, Vice President and Manager Zions Bank Corporate Trust (208)501-7496 From: Dan Christensen <dchristensen@citvofchubbuck.us> Sent: Monday, March 28, 2022 10:42 AM To: Jennifer Mabbott <Jennifer.Mabbott@zionsbancorp.com> Subject: 2021 Audited Financial Statements and Certification Letter (5 EXTERNAL EMAIL! Inspect contents carefully. Ms. Mabbott, Please see attachments for 2021 Audited Financial Statements and Certification Letter for the City of Chubbuck, Idaho. Please send me a submitted EMMA confirmation. Thank you, Dan 1 Joey Bowers From: Dan Christensen Sent: Monday, March 28, 2022 2:47 PM To: Joey Bowers Subject: FW: 2021 Audited Financial Statements and Certification Letter Follow Up Flag: Follow up Flag Status: Flagged From: Williamson, Tim <tim.williamson@usbank.com> Sent: Monday, March 28, 2022 2:46 PM To: Dan Christensen <dchristensen@cityofchubbuck.us> Subject: RE: 2021 Audited Financial Statements and Certification Letter Hi Dan, In compliance with the Continuing Disclosure Agreement, U.S. Bank National Association, acting in its capacity as Dissemination Agent, has provided the Annual Financial Information and Operating Data for the above referenced issue(s) via electronic transmission to Electronic Municipal Market Access (http://emma.msrb.org). https://emma.msrb.ore/MarketActivitV/ContinuingDisclosureDetails/Pll202240 If you have any questions, please feel free to contact me. Thank you, Tim Williamson Trust Review Analyst p. 206.344.4655 1 f. 206.344.4630 1 tim.williamson@usbank.com U.S. Bank Global Corporate Trust 1420 5th Avenue, 7th Floor, Seattle, WA 981011 PD-WA-T7CT I www.usbank.com U.S. BANCORP made the following annotations Electronic Privacy Notice. This e-mail, and any attachments, contains information that is, or may be, covered by electronic communications privacy laws, and is also confidential and proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Instead, please reply to the sender that you have received this communication in error, and then immediately delete it. Thank you in advance for your cooperation. CAUTION: This email originated from outside the organization. Do not click links or open attachments unless you recognize the sender and know the content is safe.