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HomeMy WebLinkAbout2022oRHo CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 TABLE OF CONTENTS Paqe 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 26-27 Independent Auditor's Report 10-12 Management Discussion and Analysis 13-22 Basic Financial Statements: Statements of Net Position 23 Statements of Activities 24 Balance Sheets - Governmental Funds 25 Statements of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 26-27 Statements of Position - Proprietary Funds 28 Statements of Revenues, Expenses, and Changes in Net Position - Proprietary 29 Statements of Cash Flows - Proprietary Funds 30-31 Statement of Fiduciary Net Position - Recreational Program Fund 32 Statement of Changes in Fiduciary Net Position - Recreational Program Fund 33 Notes to Financial Statements 34-49 Required Supplementary Information 50 Budgetary Comparison Schedule - General Fund 51 Budgetary Comparison Schedule - Highway, Streets and Roads 52 Schedule of Employer's Share of Net Pension Liability 53 Schedule of Employer Contributions 54 Notes to Required Supplementary Information 55 2 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2022 TABLE OF CONTENTS - CONTINUED Page Other Supplementary Information 56 Combining Balance Sheet - Nonmajor Governmental Funds 57 Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 58 Statements of Net Position - Internal Service Funds 59 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 60 Statements of Cash Flows - Internal Service Funds 61 Budgetary Comparison Schedule - Nonmajor Governmental Funds 62 Statistical Section 63 Statistical Section - Table of Contents 64 Financial Trends 65-72 Revenue Capacity 73-76 Debt Capacity 77-78 Operating Information 79-81 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 82-83 9 INTRODUCTORY SECTION CHUBBUCI( I D R H 0 www.city9fc11ubbuck-.us 290 E. Linden Avenue Chubbuck, ID 83202 (208) 237-2400 phone (208) 237-2409 fax MAYOR Kevin England March 28, 2023 COUNCIL MEMBERS Roger Hernandez Dan Heiner Melanie Evans Norman Reece The Honorable Mayor Kevin England, Members of the City Council, and Citizens of the City of Chubbuck: Idaho State Law requires that all general-purpose local governments with an annual budget that exceeds two hundred fifty thousand dollars submit copies of their audited financial statements to the Iegislative council. The statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GARS) by a firm of licensed certified public accountants. Pursuant to those requirements, we hereby issue the comprehensive annual financial report for the City of Chubbuck for the fiscal year ended September 30, 2022. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive frame -work of internal control that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Deaton & Company, Chartered, a firm of licensed certified public accountants has issued an unmodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2022. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. Profile of the City of Chubbuck The City of Chubbuck (estimated population of 16,032) 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 2022 estimated population of 56,700. The City is located in Bannock County with a 2022 estimated population of 87,854. 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 monitored monthly. The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the City and, in particular, the Clerk's Office. Each member of these departments has our sincere appreciation for the contributions made in the preparation of this project. Credit also must be given to the Mayor and the City Council for their support for maintaining high standards of professionalism in the management of the City of Chubbuck's finances. Respectfully submitted March 28, 2023 tiRich MorganDaniel Christensen City Treasurer City Accountant CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2022 Title Elected Officials Mayor Council President Council Member Council Member Council Member City Officials City Attorney Public Works Director City Engineer Sewer/Water Superintendents Sanitation/Streets Superintendent Treasurer City Clerk Human Resource Officer City Accountant Community Services Police Chief Computer Information Systems Parks & Recreation Fire Chief !3 Name Kevin England Roger Hernandez Melanie Evans Dan Heiner Norman Reece Ryan Lewis Bridger Morrison Bridger Morrison Scott Baker/Cameron Lusk Ryan Sullivan Rich Morgan Joey Bowers Scott Gummersall Dan Christensen Devin Hillam Bill Guiberson Joey Bowers Aaron Schilhabel Merlin Miller COMM SERV CITY OF CHUBBUCK ORGANIZATION CHART L - LDEVELOPMENT PLANNING SERVICES I BUILDING PARKS 0 Deaton & Company, Chartered I I" M milli Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208) 232-5825 �- Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Report on the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Chubbuck as of and for the year ended September 30, 2022, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities information of the City of Chubbuck, Idaho, as of September 30, 2022, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America. Basis for Opinion We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Our responsibilities under those standards are further described in the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to be independent of the City of Chubbuck, Idaho, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion. Responsibility of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Chubbuck's ability to continue as a going concern for twelve months beyond the financial statement date, including any currently known information that may raise substantial doubt shortly thereafter. Auditor's Responsibilities for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we: • Exercise professional judgment and maintain professional skepticism throughout the audit. • Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, no such opinion is expressed. • Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements. • Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and pension schedules on pages 13-22, 51-52 and 53-54, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Supplementary Information The combining and individual nonmajor fund financial statements and budgetary comparison schedule - nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The prior year summarized comparative information has been derived from the City's 2021 audited financial statements and, in our report dated March 28, 2022, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information. This information is consistent, in all material respects, with the audited financial statements from which it has been derived. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. In connection with our audit of the basic financial statements, our responsibility is to read the other information and consider whether a material inconsistency exists between the other information and the basic financial statements, or the other information otherwise appears to be materially misstated. If, based on the work performed, we conclude that an uncorrected material misstatement of the other information exists, we are required to describe it in our report Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2023, 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, 2023 CITY OF CHUBBUCK, IDAHO Management's Discussion and Analysis For the Year Ended September 30, 2022 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, 2022. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in the notes to financial statements. Financial Highlights • The assets and deferred outflows of the City of Chubbuck exceed its liabilities and deferred inflows at the close of the most recent fiscal year by $89,776,875 (net position ). • The governments net position increased by $10,747,184. Approximately 78 percent of this increase, $8,379,600 is attributed to capital contributions. • At the end of the current fiscal year, unassigned fund balances for the general fund were $3,453,406 or 26 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $790,762, and operating expenses increased by $1,745,719. These differences are due to a combination of increases in services rendered and increases in operating costs respectively . • During the current fiscal year, City of Chubbuck's governmental and business -type liabilities had an increase of $6,216,961 from $25,707,637 to $31,924,598 . The increase was primarily due to an increase in unearned revenue and net pension liabilities. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Chubbuck's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial - statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all 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. The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All changes in the assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). 13 Both of the government -wide financial statements distinguish function s 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 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 . 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. 14 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 33-48 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. 15 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 $89,776,875 as of September 30, 2022. The largest portion of the City of Chubbuck's net position is reflected in its net investment in capital assets (e.g., land, building, equipment, improvements, work -in -process, and infrastructure), less accumulated depreciation and any debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide service to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Below is a summary of the City of Chubbuck's Net Position statement. City of Chubbuck's Net Position Governmental Activities Business Activities Total 9n99 9n91 9n" )n9i 9n99 9n91 ASSETS Curren. and other assets 5 6,843,100 5 4,741,568 5 22,776,569 S 21,916,481 S 29,619,669 5 26,658,049 Noncurrent assess 43,034,293 32,733,009 56,571,188 54,644,442 99,605,481 87,377,451 Total assess 49,877,393 37,474,577 79,347,757 76,560,923 129,225,150 114,035,500 DEFERRED OUTFLOWS S 38,527,864 5 31,549,956 S 51,249,011 S 47,479,735 S 89,776,875 S 79,029,691 Pension 2,372,794 1,283,818 998,160 545,136 3,370,954 1,828,954 LIABILITIES Long-term liabilities outstanding 4,951,609 371,544 20,245,381 19,700,917 25,196,990 20,072,461 Other liabilities 3,569,191 2,242,683 3,158,417 3,392,493 6,727,608 5,635,176 8,520,800 2,614,227 23,403,798 23,093,410 31,924,598 25,707,637 DEFERRED INFLOWS Pension 52,245 2,897,985 21,977 1,230,545 74,222 4,128,530 Certificate of participation 5,149,278 1,696,227 5,671,131 5,302,369 10,820,409 6,998,596 NET POSITION Net investment in captial assets 42,901,054 32,641,830 43,397,173 41,932,621 86,298,227 74,574,451 Restricted 168,950 168,150 168,950 168,150 Unrestricted i4,373,196j 11,091,874) 7,682,888 5,378,964 3,309,698 4,287,090 Total net position S 38,527,864 5 31,549,956 S 51,249,011 S 47,479,735 S 89,776,875 S 79,029,691 The restricted portion of the City of Chubbuck's net position $168,950, represent resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $3,309,698, may be used to meet the governments' ongoing obligation to citizens and creditors. As of September 30, 2022, 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, 79 percent of the total liabilities are made up of noncurrent liabilities. The increase by 24 percent in total liabilities, compared to previous year, is due to an increase in net pension liabilities. " Governmental activities. Governmental activities' key elements are broken down in the following charts. The general activities increased net position by $6,977,908, and the business -type activities increased net position by $3,769,276. The City of Chubbuck's direct charges to users of governmental services totaled $576,393. These charges are for park rentals, building permits and other fees related to public safety and administration. The general government accounts for 86 percent of the total charges for services. Public safety includes the fire and police department and accounts for 55 percent of total charges for services. Below is summary of the City of Chubbuck's Changes in Net Position. REVENUES Program revenues: Ch a rg es for servi ces operating grants and contributions Capital grants and contributions General revenue: Property taxes Franchise fees and intergovernmental 6th er Transfers in Total Revenues EXPENSES General government Public safety Highway, streets and roads Parks and recreation Com m u n ity servi ces Water Sewer Sanitation Health plan trust CIAWWC Authority Transfers out Total expenses NET CHANGE IN NET POSITION NET POSITION beginning NET POSITION ending City of ChuhhueWs Changes in Net Position GovernmentalAciivities Business Activities Total 2022 2421 2022 2021 2022 2021 $ 575,393 $ 435,842 $11,944,774 $11,154,012 $12,521,167 $ 11,590,854 1,034,960 2,345,551 - - 1,034,950 2,345,551 5,322,013 2,253,204 3,285,586 3,228,076 8,607,599 5,481,280 7,001,435 4,790,711 - - 7,001,435 4,790,711 3,478,388 3,435,987 - 3,478,388 3,435,987 673,581 833,328 [147,660} 824,596 525,921 1,657,924 19,086,770 14,095,523 15,082,700 15,205,684 33,159,470 29,303,307 1,15 3,148 1,348,508 1,15 3,148 1,348, 508 5,089,013 5,090,452 5,089,013 5,090,452 2,121,982 2,135,983 2,121,982 2,135,983 879,101 902,354 879,101 902,354 865,519 95,954 865,518 95,954 - - 3,494,595 2,742,104 3,494,595 2,742,104 - - 3,707,757 2,868,693 3,707,757 2,868,693 - - 2,450,458 1,969,580 2,450,458 1,969,580 - - 1,645,714 1,345,956 1,645,714 1,345,956 - - 3,800 305,104 3,800 305,104 11,1o8,862 9,473,261 11,313,424 9,233,437 22,422,286 19,705,598 6,977,908 4,623,352 3,769,276 5,973,247 10,747,184 10,596,609 31,549,955 26,925,594 47,479,735 41,505,488 79,029,591 68,433,082 $ 38,527,864 $31,549,956 $51,249,011 $47,479,735 $89,775,875 $ 79,029,591 17 Revenue by Source - Government Activities Other $ 673,581, 4% Franchise fees and intergovernmental $ 3,478,388, 19% Charges for services $576,393 , 3 Property taxes $ 7,001,435 , 9 YO I Operating grants and contributions 1,034,960 , 690 Capital grants and contributions 5,322,013, 29% Expenses and Program Revenues —Governmental Activities 7,000, 000 6,000, 000 5,000,000 4,0 ^j''}y f0}y j0,0 ''}yj0''}y j''}y j0''}y 2,000, 000 1,000, 000 ■ Expenses ■ Revenue • The majority of the City of Chubbuck's governmental activities' revenue is received from property tax 39 percent. • When all taxes, franchise fees, and intergovernmental revenues are added together, they make up 106 percent of the budget. • When revenues are compared to expenses, it shows that most of the City of Chubbuck's programs are not self-supporting. They all require tax support to continue at their current level of service. For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. No significant transaction occurred outside of the Major funds for fiscal year 2022. 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. 19 Business -type activities. Businesses -type activities' key elements are broken down in the following charts. Revenue by Source - Business Type Activities Other [147,660}-0.9845 1 V wftba�k Capital grants and dedicated assets $3,285,586 21.78% Charges far services $11,944,774 79.20% Expenses and Program Revenue - Business type Activities $5,440000 $4,500,000 $4,000,000 $3,500,000 $3,040,000 $2,500,000 $2.000.000 $1.500.000 $1,040,000 $540,000 Water Sewer Sa -1-tat-0-1 Revenue Expense • One of the major sources of the City of Chubbuck's business -type activities' revenue is received from service revenue. Currently, the City of Chubbuck's business type activities do not use property taxes for any type of funding. • When revenues are compared to expenses, it shows that all of the City of Chubbuck's programs are self-supporting. 20 Financial Analysis of the Government's Funds As noted earlier, the City of Chubbuck uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Chubbuck's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Chubbuck's financing requirements. 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 $2,908,842. Of which $1,143,122 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 $3,253,041. With the other financing sources and uses, the net change in the general fund increased $540,674 for fiscal year 2022. 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 7 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: $4,985,857, Sewer: $516,981, and Sanitation: $1,405,383. The water fund had an increase in net position of $1,872,232; the sewer fund had an increase in net position of $1,877,728; and the sanitation fund had a decrease in net position of $(291,579) . 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 $540,674 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 $62,181 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, 2022, amounts to $96,544,924 (net of accumulated depreciation). This investment in capital assets includes land, vehicles, equipment, other improvements, and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year was $15,579,424. The increase in assets includes development contributions of $8,379,600. 21 City of Chubbuck's Capital Assets 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 outstandi ng of $19,333,673 . Of this amount, $9,974,645 is comprised of notes to the Department of Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a remaining balance of $634,421 used for purchasing water rights. The City had a DEQ note payable for water tank repairs with a remaining balance of $80,909. In the State of Idaho statutes section 50-3108, the State of Idaho mandates a general obligation debt limit of 9 percent of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has no general obligation debt. The limit totaled $112,073,005 based on 2021's actual assessed values of 1,245,255,614. Therefore $112,073,005 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 11 on pages 42-44 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Treasurer at 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400. 22 Governmental Activities Business Activities To al 2022 2021 2022 2021 2022 2021 Land S 2,817,486 S 2,643,092 S 2,159,817 S 2,159,817 5 4,977.297 S 4,802.909 Building & Improvements 7,919,735 7,884,696 51,568,633 47,667,894 59,488.368 55,552,590 Vehicles & Equipment 5,258,000 5,387,752 8,624,516 8,328,801 13,882,516 13,716,553 Infrastructure 21,965,166 19,726,936 - - 21,965,166 19,726.936 Work in Progress 14,583,066 5.758,995 989,097 1,701,858 15,572,163 7,460.853 CIAwwCA; - - Land - - - - Infrastructure Office Equipment - - - - Water Rights - 2.421,167 2,421.167 2,421.167 2,421.167 Total S 52,543,447 S 41,401,471 S65.763,230 S62,279,537 5 118,306.677 S 103,681.008 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 outstandi ng of $19,333,673 . Of this amount, $9,974,645 is comprised of notes to the Department of Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a remaining balance of $634,421 used for purchasing water rights. The City had a DEQ note payable for water tank repairs with a remaining balance of $80,909. In the State of Idaho statutes section 50-3108, the State of Idaho mandates a general obligation debt limit of 9 percent of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has no general obligation debt. The limit totaled $112,073,005 based on 2021's actual assessed values of 1,245,255,614. Therefore $112,073,005 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 11 on pages 42-44 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Treasurer at 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400. 22 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2022 23 See accompanying notes to financial statements Governmental Business -type Development Activities Activities Total Authority ASSETS Current assets Cash and cash equivalents $ 8,085,483 $ 18,337,196 $ 26,422,679 $ 1,769,688 Property taxes receivable 610,984 - 610,984 8,220 Intergovernmental receivables 977,213 5,281 982,494 - Interest receivable 4,460 3,474 7,934 Lease receivable 137,472 - 137,472 Grant receivable 500,568 - 500,568 Internal balances due to/from (3,473,571) 3,473,571 - Prepaid expenses - 13,632 13,632 Other accounts receivable 491 943,415 943,906 6,843,100 22,776,569 29,619,669 1,777,908 Noncurrent assets Restricted assets Bond reserves - 168,950 168,950 Utility deposits 476,085 476,085 Investments - 2,269,090 2,269,090 Lease assets 141,108 17,121 158,229 Accumulated amortization of assets (7,869) (3,928) (11,797) - Capital assets 52,543,447 65,763,230 118,306,677 1,622,524 Accumulated depreciation (9,642,393) (12,119,360) (21,761,753) - 43,034,293 56,571,188 99,605,481 1,622,524 49,877,393 79,347,757 129,225,150 3,400,432 DEFERRED OUTFLOWS Pension 2,372,794 998,160 3,370,954 - LIABILITIES Current liabilities Accounts payable 359,715 431,139 790,854 4,260 Grant payable - - - 407,264 Accrued payroll 97,377 40,937 138,314 - Accrued bond interest - 1,996 1,996 Interest payable 3,474 860,450 863,924 Unearned revenue 3,016,046 102,878 3,118,924 Current portion compensated absences 92,579 28,214 120,793 - Current portion of bonds payable - 152,355 152,355 107,886 Current portion of long-term debt 970,823 970,823 - Health Claims incurred but not reported 93,540 93,540 Utility deposits 476,085 476,085 - 3,569,191 3,158,417 6,727,608 519,410 Noncurrent liabilities Bonds payable, net unamortized premium 482,066 482,066 1,429,408 Notes payable - 17,757,850 17,757,850 - Lease obligation 113,525 13,164 126,689 Accrued compensated absences 370,318 112,853 483,171 Net pension liabilities 4,467,766 1,879,448 6,347,214 4,951,609 20,245,381 25,196,990 1,429,408 8,520,800 23,403,798 31,924,598 1,948,818 DEFERRED INFLOWS Pension 52,245 21,977 74,222 - Certificate of participation 5,149,278 5,671,131 10,820,409 NET POSITION Net investment in capital assets 42,901,054 43,397,173 86,298,227 - Restricted - 168,950 168,950 683,130 Unrestricted (4,373,190) 7,682,888 3,309,698 768,484 $ 38,527,864 $ 51,249,011 $ 89,776,875 $ 1,451,614 23 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2022 Component Unit: Chubbuck Development Authority $ 4,112,190 - $ 4,112,190 - General Business -type Activities Activities Total Net (expense)/revenue General revenues Property taxes Franchise fees Intergovernmental income Grant revenue Interest income Gain from asset disposal Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION $ (4,175,496) $ 3,916,936 $ (258,560) $ (4,112,190) $ (4,112,190) Development Authority $ (4,112,190) 7,001,435 7,001,435 Program Revenues Total 254,956 - Operating Capital Net - 131,771 Charges for Grants and Grants and (Expense) Development 7,626 Expenses Services Contributions Contributions Revenue Authority Functions/Programs 11,153,404 (147,660) 11,005,744 3,111,146 6,977,908 Primary Government: 10,747,184 (1,001,044) 31,549,956 47,479,735 79,029,691 Governmental activities: $ 38,527,864 $ 51,249,011 $ 89,776,875 $ 1,451,614 General government $ 1,153,148 $ 497,615 $ 501,568 $ $ (153,965) $ - Law enforcement 3,922,815 38,982 14,965 (3,868,868) - Fire control 2,166,198 23,963 - (2,142,235) - Highway, streets, and roads 2,121,982 - - 5,322,013 3,200,031 - Parks and recreation 879,101 15,833 - - (863,268) - Community services 630,746 - - (630,746) - Other special funds 234,872 518,427 - 283,555 - 11,108,862 576,393 1,034,960 5,322,013 (4,175,496) - Business -type activities Water 3,494,695 3,256,843 - 2,248,558 2,010,706 - Sewer 3,707,757 4,749,986 - 809,028 1,851,257 - Sanitation 2,460,458 2,223,905 - - (236,553) - Health plan trust 1,646,714 1,714,040 - - 67,326 - CIAWWC Authority 3,800 - - 228,000 224,200 - 11,313,424 11,944,774 - 3,285,586 3,916,936 - Total primary government $ 22,422,286 $ 12,521,167 $ 1,034,960 $ 8,607,599 $ (258,560) $ - Component Unit: Chubbuck Development Authority $ 4,112,190 - $ 4,112,190 - General Business -type Activities Activities Total Net (expense)/revenue General revenues Property taxes Franchise fees Intergovernmental income Grant revenue Interest income Gain from asset disposal Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION $ (4,175,496) $ 3,916,936 $ (258,560) $ (4,112,190) $ (4,112,190) Development Authority $ (4,112,190) 7,001,435 7,001,435 3,073,877 254,956 254,956 - 3,223,432 3,223,432 - 131,771 (159,885) (28,114) 7,268 79,272 7,626 86,898 - 462,538 4,599 467,137 30,001 11,153,404 (147,660) 11,005,744 3,111,146 6,977,908 3,769,276 10,747,184 (1,001,044) 31,549,956 47,479,735 79,029,691 2,452,658 $ 38,527,864 $ 51,249,011 $ 89,776,875 $ 1,451,614 24 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 Highway, Streets, Other General and Roads Governmental Fund Fund Funds Total ASSETS Cash $ 4,956,949 $ 1,120,069 $ 1,765,720 $ 7,842,738 Accounts receivable 491 - - 491 Property taxes receivable 594,542 16,442 610,984 Intergovernmental receivables 147,980 184,323 332,303 Interest receivable 4,460 - 4,460 Lease receivable 137,472 137,472 Grant receivable 500,568 - 500,568 Deposit on equipment 632,587 - 632,587 $ 6,975,049 $ 1,320,834 $ 1,765,720 $ 10,061,603 LIABILITIES Accounts payable $ 243,279 $ 116,436 $ - $ 359,715 Accrued payroll 86,333 11,044 97,377 Accrued compensated absences 80,286 12,293 92,579 Interest Payable - 3,474 3,474 Due to other funds - 3,473,571 3,473,571 409,898 3,616,818 4,026,716 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - taxes 95,699 14,300 109,999 Unavailable revenues - prepaid 2,881,486 - 2,881,486 Unavailable revenues - leases 134,560 - 134,560 3,111,745 14,300 - 3,126,045 FUND BALANCES Committed - - 1,765,720 1,765,720 Unassigned 3,453,406 (2,310,284) - 1,143,122 3,453,406 (2,310,284) 1,765,720 2,908,842 $ 6,975,049 $ 1,320,834 $ 1,765,720 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 $9,642,393. 42,901,054 Lease assets are not reported in the funds, net of amortization 133,239 Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds: Property tax 109,999 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 2,372,794 Deferred inflows of resources related to pensions (52,245) Deferred inflows of resources related to certificates of participation (5,149,278) 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. 255,068 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Lease liability (113,525) Accrued compensated absences (370,318) Net pension asset/(liability) (4,467,766) Net position of governmental funds $ 38,527,864 25 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 See accompanying notes to financial statements Highway, Streets, Other General and Roads Governmental Fund Fund Funds Total REVENUES Property taxes $ 6,095,966 $ 944,984 $ - $ 7,040,950 Franchise fees 254,956 - - 254,956 Intergovernmental income 2,009,264 1,214,168 - 3,223,432 Court Revenue 28,549 - - 28,549 Parks revenue 13,133 - - 13,133 Licenses, permits and fees 368,406 - - 368,406 Grants 516,533 - - 516,533 Fire protection and prevention 23,963 - - 23,963 Law enforcement 10,433 - - 10,433 Leases and rents 129,209 - - 129,209 Interest income 118,175 10,444 3,152 131,771 Donations 518,427 - - 518,427 Charges for services 2,700 - - 2,700 Other revenues 14,844 4,290 430,626 449,760 10,104,558 2,173,886 433,778 12,712,222 EXPENDITURES General government 914,597 - - 914,597 Law enforcement 3,646,501 - - 3,646,501 Fire control 1,859,209 - - 1,859,209 Highway, streets, and roads - 1,618,017 - 1,618,017 Parks and recreation 727,783 - - 727,783 Community services 593,428 - - 593,428 Other purchased services - - 234,872 234,872 Capital outlays 5,449,148 583,568 - 6,032,716 Lease capital outlays 141,108 - - 141,108 Debt Service Principal retirement and lease finance 25,648 - - 25,648 Interest expense 177 3,474 - 3,651 13,357,599 2,205,059 234,872 15,797,530 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,253,041) (31,173) 198,906 (3,085,308) OTHER FINANCING SOURCES (USES) Proceeds from certificate of participation 3,573,335 93,354 - 3,666,689 Proceeds from leases 141,108 141,108 Proceeds from sale of assets 79,272 - - 79,272 3,793,715 93,354 - 3,887,069 NET CHANGE IN FUND BALANCES 540,674 62,181 198,906 801,761 BEGINNING FUND BALANCE 2,912,732 (2,372,465) 1,566,814 2,107,081 ENDING FUND BALANCE $ 3,453,406 $ (2,310,284) $ 1,765,720 $ 2,908,842 (Continued) See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Tnta I Reconciliation of the change in fund balances - total governmental funds to the change in net position of governmental activities: Net change in fund balances - total governmental funds $ 801,761 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 5,322,013 Capital asset purchases capitalized 6,032,716 Gain or (loss) from asset disposal - Depreciation expense (1,095,505) 10,259,224 The net affect of sales transactions involving capital assets The net affect of lease agreement that are reort in the Statement of Activities, but do not privde current fiancail resources and are not reported in the governmetnal funds. 19,714 Unavailable revenues are not recorded as current period receipts (39,515) 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 12,778 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 1,226 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 (624,229) 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 (3,453,051) Change in net position $ 6,977,908 27 See accompanying notes to financial statements ASSETS Current assets Cash and cash equivalents Accounts receivable Interest receivable Prepaid expense Noncurrent assets Restricted assets Bond reserves Utility deposits Net pension asset Advance to joint venture Investments Capital assets Accumulated depreciation Lease assets Accumulated amortization Due from other funds DEFERRED OUTFLOWS Pension LIABILITIES Current Liabilities Accounts payable Payroll payable Health Claims incurred but not reported Unearned contributions Accrued compensated absences Current portion of bonds payable Accrued bond interest Current portion of long-term debt Accrued note interest Deposits Noncurrent Liabilities Revenue bonds payable, net unamortized premium Advance payable Notes payable Compensated absences Lease Liabilities Net pension liabilities DEFERRED INFLOWS Pension Certificate of participation NET POSITION Net investment in capital assets 17,171,684 22,316,481 3,904,070 43,392,235 41,926,396 4,938 6,225 Restricted for bond service 168,950 - - - 168,950 168,150 - - Unrestricted 4,985,857 516,981 1,405,383 682,956 7,591,177 5,304,109 346,779 317,145 $ 22,326,491 $22,833,462 $5,309,453 $ 682,956 $ 51,152,362 $ 47,398,655 $ 351,717 $ 323,370 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 96,649 $ 51,249,011 28 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2021 Internal Internal Health Plan Service Service Water Sewer Sanitation Trust CIAWWCA Total 2021 Funds 2022 Funds 2021 $ 5,236,254 $ 9,281,835 $2,884,746 $ 830,327 $ $18,233,162 $ 17,359,375 $ 346,779 $346,128 349,962 359,561 184,136 49,756 943,415 796,459 17,604 - - 3,474 - - 3,474 3,605 - 13,632 13,632 47,828 5,599,848 9,644,870 3,068,882 880,083 19,193,683 18,207,267 364,383 346,128 168,950 - - - 168,950 168,150 - - 472,085 3,300 700 476,085 405,081 - - - - 38,717 - - - 228,000 1,834,390 - 434,700 2,269,090 1,995,765 - - 31,822,653 26,840,593 6,838,899 65,502,145 62,018,452 261,085 261,085 (4,900,878) (4,524,112) (2,438,223) (11,863,213) (9,987,948) (256,147) (254,860) 5,724 5,724 5,673 17,121 (1,315) (1,315) (1,298) (3,928) 3,473,571 - 3,473,571 3,605,376 29,401,609 25,797,761 4,840,451 60,039,821 58,471,593 4,938 6,225 35,001,457 35,442,631 7,909,333 880,083 79,233,504 76,678,860 369,321 352,353 357,524 312,209 328,427 - 998,160 545,136 - - 60,456 281,411 70,959 709 413,535 972,575 17,604 28,983 14,832 12,858 13,247 - 40,937 115,339 - - - - - 93,540 93,540 83,590 - - - 102,878 102,878 105,429 11,648 10,758 5,808 - 28,214 32,556 152,355 - - 152,355 147,355 1,996 - - 1,996 2,346 22,211 852,545 96,067 970,823 966,818 858,905 - 1,545 860,450 532,421 472,085 3,300 700 - 476,085 405,081 - - 1,594,488 1,160,872 188,326 197,127 3,140,813 3,363,510 17,604 28,983 482,066 - - - 482,066 634,422 - - - - - - 228,000 8,235,211 9,122,100 400,539 17,757,850 18,936,270 46,590 43,033 23,230 112,853 130,225 4,399 4,399 4,366 13,164 673,187 587,862 618,399 1,879,448 9,441,453 9,757,394 1,046,534 20,245,381 19,928,917 11,035,941 10,918,266 1,234,860 197,127 23,386,194 23,292,427 17,604 28,983 7,872 6,874 7,231 - 21,977 1,230,545 - - 1,988,677 1,996,238 1,686,216 5,671,131 5,302,369 Net investment in capital assets 17,171,684 22,316,481 3,904,070 43,392,235 41,926,396 4,938 6,225 Restricted for bond service 168,950 - - - 168,950 168,150 - - Unrestricted 4,985,857 516,981 1,405,383 682,956 7,591,177 5,304,109 346,779 317,145 $ 22,326,491 $22,833,462 $5,309,453 $ 682,956 $ 51,152,362 $ 47,398,655 $ 351,717 $ 323,370 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 96,649 $ 51,249,011 28 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 29 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust CIAWWCA Total 2021 Funds 2022 Funds 2021 OPERATING REVENUES Service revenue $ 2,622,422 $ 4,749,986 $ 2,223,905 $ 1,714,040 $ $11,310,353 $ 10,372,235 $ 331,798 $ 360,800 Revenue used as security for revenue bond: Charges for services 634,421 634,421 781,777 3,256,843 4,749,986 2,223,905 1,714,040 11,944,774 11,154,012 331,798 360,800 OPERATING EXPENSES Administration - - - 54,322 54,322 52,741 - 69 Salaries and wages 734,196 639,635 688,543 - 2,062,374 2,066,290 - Personnel benefits 382,496 323,203 363,803 1,220,311 2,289,813 1,384,911 - 5,534 Repairs and maintenance 282,014 177,237 750,020 1,209,271 1,208,775 13,766 19,046 Equipment and supplies 517,590 115,669 259,232 892,491 362,900 279,023 334,089 Travel, meetings, and training 17,872 3,820 3,312 25,004 18,065 48 3,182 Telephone and communications 8,170 7,174 7,174 22,518 26,550 - - Utilities 216,907 40,714 7,947 265,568 237,199 9,978 6,528 Treatment - Pocatello - 1,511,891 - 1,511,891 1,430,738 - - Certificate of participation payment 82,829 83,143 70,231 - 236,203 243,572 Other purchased services 48,294 - 1,250 326,703 376,247 381,395 Professional services 31,107 11,084 7,860 45,378 3,800 99,229 348,603 Bad debt 2,243 2,577 587 - - 5,407 1,555 - - Depreciation 833,197 790,263 280,050 1,903,510 1,448,763 1,287 1,287 Lease amortization 1,315 1,315 1,298 3,928 3,158,230 3,707,7252,2RT,-3o7 --T,-64-6-,7-T4- 3,800 10,957,7769, -2f2 -,O-57 369,735 OPERATING INCOME 98,613 1,042,261 (217,402) 67,326 (3,800) 986,998 1,941,955 27,696 (8,935) NONOPERATING REVENUE (EXPENSE) Interest income 10,530 16,410 6,130 - 33,070 21,539 651 455 Investment income (135,082) - (61,347) (196,429) (966) - - Note interest income 3,474 3,474 3,605 Bond interest expense (20,445) - (20,445) (24,507) Note interest expense (331,557) - (19,119) (350,676) (26,291) Lease interest expense (32) (32) (32) (96) - Grant revenue - - - 228,000 228,000 228,000 Miscellaneous revenue 547 61 191 3,800 4,599 - Gain (Loss) from asset disposal 1,100 6,526 - - 7,626 800,418 Transfers in (out) (474,939) 26,439 (74,177) 231,800 (290,877) 1,001,798 651 455 CAPITAL CONTRIBUTIONS Developer contributions 2,248,558 809,028 3,057,586 3,000,076 2,248,558 809,028 3,057,586 3,000,076 CHANGES IN NET POSITION 1,872,232 1,877,728 (291,579) 67,326 228,000 3,753,707 5,943,829 28,347 (8,480) BEGINNING NET POSITION 20,454,259 20,955,734 5,601,032 615,630 (228,000) 47,398,655 41,454,826 323,370 331,850 ENDING NET POSITION $ 22,326,491 $22,833,462 $ 5,309,453 $ 682,956 $ $51,152,362 $ 47,398,655 $ 351,717 $ 323,370 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 15,569 Change in net position of business -type activities $ 3,769,276 29 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 CASH FLOWS FROM OPERATING ACTIVITIES Cash received from revenues Cash paid to suppliers Cash paid to employees Net cash provided by operating activities CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES Net change in interfund loans Proceeds from grants Proceeds from deposits (payments) Net cash (used) in noncapital financing activities CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on debt Interest paid Proceeds from certificate of participation Proceeds from asset disposals Principal and interest paid on lease 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 proceeds Net cash provided by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEGINNING CASH AND CASH EQUIVALENTS ENDING CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents Cash and cash equivalents - Restricted Internal Internal Health Plan Service Service Water Sewer Sanitation Trust CIAWWCA Total 2021 Funds 2022 Funds 2021 $3,189,218 $4,718,052 $2,207,824 $ 1,745,930 $ - $11,861,024 $11,187,608 $ 314,845 $361,255 (1,419,879) (2,148,216) (1,254,087) (1,623,131) (3,800) (6,449,113) (5,444,658) (314,194) (355,335) (1,062,536) (919,451) (989,431) - - (2,971,418) (2,804,613) - (5,534) 706,803 1,650,385 (35,694) 122,799 (3,800) 2,440,493 2,938,337 651 386 - 359,805 - (228,000) 131,805 131,673 - - - - - 231,800 231,800 228,000 70,554 350 100 - 71,004 (20,143) 70,554 360,155 100 3,800 434,609 339,530 (161,461) (1,060,561) (92,393) - (1,314,415) (896,923) (31,334) - (19,464) (50,798) (51,157) 129,313 129,804 109,645 368,762 4,845,534 1,100 6,526 - 7,626 - (1,357) (1,357) (1,339) (4,053) (130,391) (323,961) (454,352) (6,553,928) (194,130) (925,588) (327,512) (1,447,230) (2,656,474) 37,371 20,075 (489,727) (432,281) 283,786 37,371 20,075 (489,727) (432,281) 283,786 - - 620,598 1,105,027 (852,833) 122,799 995,591 905,179 651 386 5,256,691 8,180,108 3,738,279 707,528 17,882,606 16,977,427 346,128 345,742 $5,877,289 $9,285,135 $2,885,446 $ 830,327 $ $18,878,197 $17,882,606 $ 346,779 $ 346,128 $5,236,254 $9,281,835 $2,884,746 $ 830,327 $ $18,233,162 $17,359,375 $ 346,779 $ 346,128 641,035 3,300 700 - 645,035 523,231 - - $5,877,289 $9,285,135 $2,885,446 $ 830,327 $ $18,878,197 $17,882,606 $ 346,779 $ 346,128 30 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 31 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust CIAWWCA Total 2021 Funds 2022 Funds 2021 OPERATING INCOME $ 98,613 $1,042,261 $ (217,402) $ 67,326 $ (3,800) $ 986,998 $1,994,696 $ 28,347 $ (8,480) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation and amortization 834,512 791,578 281,348 - 1,907,438 1,448,763 1,287 1,287 Pension expense 91,631 78,861 86,082 256,574 (322,812) - - Baddebtexpense 2,243 2,577 587 - 5,407 1,555 (Increase) decrease in assets Accounts receivable (67,625) (31,934) (16,081) 47,473 (68,167) (21,397) (17,604) Prepaid expense - (13,633) - Increase (decrease) in liabilities Accounts payable (215,096) (197,484) (147,061) 8,000 (551,641) (172,423) (11,379) 7,579 Payroll payable (26,304) (23,088) (25,010) - (74,402) 2,180 - Accrued compensated absences (11,171) (12,386) 1,843 - (21,714) 21,408 - Total adjustments 608,190 608,124 181,708 55,473 1,453,495 943,641 (27,696) 8,866 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 706,803 $1,650,385 $ (35,694) $ 122,799 $ (3,800) $ 2,440,493 $ 2,938,337 $ 651 $ 386 31 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2021 Net Position Held in trust $ 33,105 $ 37,808 32 See accompanying notes to financial statements Recreation Programs Trust Fund 2022 2021 Assets Cash $ 33,105 $38,078 33,105 38,078 Liabilities Accounts payable - 270 - 270 Net Position Held in trust $ 33,105 $ 37,808 32 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, 2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 33 See accompanying notes to financial statements Recreation Programs Trust Fund 2022 2021 Additions Boys registration $ 19,214 $ 15,917 Girls registration 11,330 10,088 Tee/tiger registration 20,978 14,465 Boys sponsorship 3,451 2,250 Girls sponsorship 3,000 2,550 Other revenue 600 90 Total additions 58,573 45,360 Deductions Boy's baseball 25,905 22,336 Girl's softball 12,227 11,884 Tee/tiger ball 14,435 7,781 Other expenses 10,709 8,793 Total deductions 63,276 50,794 Change in net position (4,703) (5,434) Net position - beginning of the year 37,808 43,242 Net position - end of the year $ 33,105 $ 37,808 33 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 16) NOTE 1 - Summary of Sianificant Accountina Policies The City's financial statements comply with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements within the codification. The government -wide financial statements, including the enterprise funds and the fund financial statements for the proprietary funds, are also under GASB codification. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. Applicable GASB statements have been implemented through GASB 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) Effective September 1, 2007, Bannock County, Idaho, City of Pocatello, Idaho and the City of Chubbuck, Idaho entered into a Joint Powers Agreement creating the Chubbuck Impact Area Wastewater Collection Authority (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 were paid in full at year-end. During the prior 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. Page 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued B. Basis of Presentation (continued) Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. Funds are organized into three major categories; governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type. b. Total assets, liabilities, revenues, or expenditures of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Governmental Funds General Fund The General Fund is the general operating fund of the City and is always classified as a major fund. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Highway, Streets, and Roads Fund The Highway, Streets, and Roads Fund accounts for revenue and expenditures used for the construction and maintenance of highways, streets, and roads. It is a major fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Proprietary Funds Enterprise Funds Enterprise funds are used to account for business -like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. The reporting entity includes the water, sewer, 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. Page 35 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 16) 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 interfund activity has been eliminated from the government -wide financial statements. D. Budgets and Encumbrances Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, highway, streets and roads, and special revenue funds. All annual appropriations lapse at fiscal year end. Each month the City prepares a financial report that reflects the actual and budgeted financial data. A strict purchase order system is used in controlling and maintaining expenditures within budget categories. This data is reviewed by the City Council. The City does not use the encumbrance method of accounting. E. Cash and Cash Equivalents For the purpose of the Statement of Net Position, "cash and cash equivalents" includes all demand, savings accounts, certificates of deposits, and state investing pools of the City. For the purpose of the proprietary fund Statement of Cash Flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. Page 36 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued) F. Fair Value Measurements of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the City. Unobservable inputs reflect the City's assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that City has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these assets and liabilities does not require a significant degree of judgement. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable, that is, inputs that reflect the City's own assumptions. G. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, right of way and similar items), are assets with an initial, individual cost of more than $25,000 and an estimated useful life in excess of one year. The accounting treatment for property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. Government -wide Statements In the government -wide financial statements, the assets are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated assets which are recorded at their estimated fair value at the date of donation. Estimated historical cost was used to value the majority of the assets acquired prior to September 30, 2003. Governmental fund infrastructure assets were not capitalized prior to October 1, 2003. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Buildings 20-30 years Other structures 15-20 years Equipment 7-10 years Vehicles 5-7 years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government -wide statements. H. Restricted Assets Restricted assets include cash and investments of the 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. Page 37 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued) I. Lessor/Lessee Leases For the year ended 9/30/2022, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. J. Long-term Debt The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the government -wide statements. The long-term debt consists primarily of notes payable, capital leases, and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. Debt proceeds are reported as other financing sources. Payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -wide statements. K. Comparative data/reclassifications Comparative total data for the prior year has been presented in the fund financial statements in order to provide an understanding of the changes in assets and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. L. Compensated Absences The City's policies regarding vacation time permit employees to accumulate earned but unused vacation leave. The liability for these unpaid compensated absences is recorded as long-term debt in the government -wide statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements, governmental funds report only the compensated absence liability payable from expendable available financial resources, while the proprietary funds report the liability as it is incurred. M. Equity Classifications Govemment-wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages notes, or other borrowings that are attributable to the acquisition, construction, or improvement of these assets. b. Restricted - Consists of assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted - All other assets that do not meet the definition of "restricted" or "net investment in capital assets." Fund Statements In the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable items- This category includes a portion of net resources that cannot be spent because of their form or because they must be maintained intact. This includes inventories and prepaid items. Restricted items - This category includes resources where limitations are imposed by external entities, such as grantors and creditors, or to comply with laws and regulations of governments. Committed items- This category includes amounts that can only be used for the specific purposes determined by a formal action of the City's highest level of decision-making authority for the City. Commitments may be changed or lifted only by the Council taking the same formal action that imposed the constraint originally. Assigned items -Assigned items represent the City's intent to use certain resources for specific purposes. The City Council may establish the intended use of these funds for a designated purpose. Page 38 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 16) NOTE 1 - Summary of Significant Accounting Policies (Continued) M. Equity Classifications (continued) Unassigned items - Represents the remainder of the City's equity in governmental fund -type balances in excess of the aforementioned classifications. It is the City's policy to use unrestricted fund balances in the following order: (1) Committed, (2) Assigned, (3) Unassigned. N. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the City to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. O. Pensions For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 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 $ 168,950 476,085 $ 645,035 Bond reserves are amounts the City is legally required to reserve for the repayment of outstanding bonds. Water deposits are collected from individuals who receive utility services from the City. Money on deposit may be used to pay past due balances or is returned when the payer stops utility service. Restricted utility deposits totaled $476,085 at year-end. NOTE 4 - Property Tax Bannock County has the responsibility of assessing and collecting all property taxes. Taxes levied for the year are payable in two installments due December 20th of the current year and June 20th of the following year. The County remits property taxes collected to the City monthly. Property taxes are recognized as revenue when received for monthly reporting purposes. At year end, an accrual is made to recognize property taxes receivable at year end. At year end, $610,984 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, 2022. Page 39 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 16) NOTE 6 - Cash, Cash Equivalents and Investments Primary Government: Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Balance Restricted $ 645,035 Unrestricted 26,422,679 $ 27,067,714 Fiduciary Fund: Balance Cash $ 33,105 $ 33,105 Deposits Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end, the carrying amount of the City's deposits (cash and certificates of deposit) was $27,100,819 and the bank balance was $23,633,886. 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 $2,585,617. 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, 2022, the City had the following investments Maturities More Than Fair Value No Maturity 1-10 Years 10 Years Moody / S&P Money Funds $ 13,614 $ 13,614 $ - $ N/A U.S. Government Bonds 2,282,704 - 2,282,704 Aaa / AA+ Total Investments $ 2,296,318 $ 13,614 $ 2,282,704 $ The above investments are measured at fair market value based on the exit price for these investments at the fiscal year end date. These are all considered to be measured on a Level 1 on the fair market value hierarchy. Component Unit - Chubbuck Development Authority (CDA): Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted $ 1,769,688 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 $1,769,688. 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 Page 40 NOTE 6 - NOTE 7 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 16) Cash and Cash Equivalents and Investments (Continued) Component Unit - Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA): Deposits and Investments - The CIAWWCA has no deposits or investments. Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end the carrying amount and bank balance of CIAWWCA's deposits (cash and certificates of deposit) was $0. At year-end, all the Authority's deposits were held in a financial institution. All deposits were guaranteed by the Federal Deposit Insurance Corporation and were not subject to custodial credit risk. Receivables and Deferred Inflow of Resources -Leases All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging delinquent balance report. Historically 100% of property taxes have been collected, therefore, there is no allowance for uncollectible property tax receivables. Receivables as of year-end for the City's business -type funds are as follows: The City, as a lessor, has entered into lease agreements involving infrastructure, land and structures, and buildings. As of 9/30/22, the City's leases have a lease receivable balance of $137,472. The balance of the deferred inflow of resources was $134,560, and the lease revenue balance was $58,335. Principal and Interest Expected to Maturity Governmental Activities CIAWWC Water Sewer Sanitation Authority Total Accounts Receivables $ 364,269 $ 370,944 $ 188,234 $ - $ 923,447 Allowance for Doubtful Accounts (14,307) (11,383) (4,098) - (29,788) $ 349,962 $ 359,561 $ 184,136 $ - $ 893,659 The City, as a lessor, has entered into lease agreements involving infrastructure, land and structures, and buildings. As of 9/30/22, the City's leases have a lease receivable balance of $137,472. The balance of the deferred inflow of resources was $134,560, and the lease revenue balance was $58,335. Principal and Interest Expected to Maturity Governmental Activities Lease Receivable Governmental Activities Deferred Inflow of Resources -Leases NOTE 8 - Concentration of Credit Risk Beginning Ending Balance Additions Reductions Balance $ $ 192,895 $ 55,423 $ 137,472 $ 192,895 55,423 137,472 Beginning Ending Balance Additions Reductions Balance $ $ 192,895 $ 58,335 $ 134,560 192,895 58,335 134,560 Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of a deposit. The City manages its exposure to declines in fair value by limiting the average maturity of its deposits to one year or less, or redeemable on demand with no penalty. Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. The City's investments in U.S. government bonds were rated Aaa and AA+ by Moody's and Standard & Poor's Investor Services, respectively. Idaho law requires the City to obtain the safest investment rated by a nationally recognized standard rating service. Page 41 Governmental Activities Principal Interest Fiscal Year Payments Payments Total Payments 2023 $ 37,973 $ 1,137 $ 39,110 2024 27,939 930 28,869 2025 29,236 722 29,958 2026 7,437 560 7,997 2027 5,522 478 6,000 2028- 2032 28,866 1,134 30,000 2033 499 1 500 $ 137,472 $ 4,962 $ 142,434 Governmental Activities Lease Receivable Governmental Activities Deferred Inflow of Resources -Leases NOTE 8 - Concentration of Credit Risk Beginning Ending Balance Additions Reductions Balance $ $ 192,895 $ 55,423 $ 137,472 $ 192,895 55,423 137,472 Beginning Ending Balance Additions Reductions Balance $ $ 192,895 $ 58,335 $ 134,560 192,895 58,335 134,560 Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of a deposit. The City manages its exposure to declines in fair value by limiting the average maturity of its deposits to one year or less, or redeemable on demand with no penalty. Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. The City's investments in U.S. government bonds were rated Aaa and AA+ by Moody's and Standard & Poor's Investor Services, respectively. Idaho law requires the City to obtain the safest investment rated by a nationally recognized standard rating service. Page 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 16) NOTE 8 - Concentration of Credit Risk (continued) Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Exclusive of the State of Idaho LGIP, the City's deposits in any one issuer does not represent a concentration of total credit risk. The funds in the State of Idaho LGIP are in a variety of investments which are required to have an A quality credit rating or better. The City is subject to credit risk on deposits in banks that exceed the FDIC maximum insured balance amount. Additionally, the City grants credit to customers in the City for utility service. This extension of credit potentially subjects the City to credit risk. NOTE 9 - Changes in Assets A summary of general capital assets at year end is as follows Nondepreciable assets Land Water Rights Work in Process Buildings and Improvements Vehicles and Equipment Accumulated Depreciation A summary of general lease assets at year end is as follows: Vehicles and Equipment Accumulated Amortization $ 2,159,817 Beginning - $ 2,159,817 Ending Balance Additions Deletions Balance Nondepreciable assets 989,097 47,667,894 3,900,739 - Land $ 2,643,092 $ 174,388 $ - $ 2,817,480 Work in Process 5,758,995 8,824,071 - 14,583,066 Infrastructures 19,726,936 2,238,230 - 21,965,166 Buildings and Improvements 7,884,696 35,039 - 7,919,735 Vehicles and Equipment 5,387,752 83,001 212,753 5,258,000 41,401,471 11,354,729 212,753 52,543,447 Accumulated Depreciation 8,759,641 1,095,505 212,753 9,642,393 $ 32,641,830 $ 10,259,224 $ - $ 42,901,054 A summary of proprietary type capital assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Nondepreciable assets Land Water Rights Work in Process Buildings and Improvements Vehicles and Equipment Accumulated Depreciation A summary of general lease assets at year end is as follows: Vehicles and Equipment Accumulated Amortization $ 2,159,817 $ $ - $ 2,159,817 2,421,167 - 2,421,167 1,701,858 712,761 989,097 47,667,894 3,900,739 - 51,568,633 8,328,801 323,960 28,245 8,624,516 62,279,537 4,224,699 741,006 65,763,230 10,242,808 1,904,797 28,245 12,119,360 $ 52,036,729 $ 2,319,902 $ 712,761 $ 53,643,870 Beginning Ending Balance Additions Deletions Balance $ $ 141,108 $ $ 141,108 141,108 141,108 7,869 $ 7,869 $ $ 133,239 $ $ 133,239 A summary of proprietary type lease assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Equipment $ $ 17,120 $ - $ 17,120 17,120 - 17,120 Accumulated Amortization 3,928 - $ 3,928 $ $ 13,192 $ - $ 13,192 Page 42 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 16) NOTE 10 - Lease Payable The City, as a lessee, has entered into lease agreements involving vehicles and equipment. As of 9/30/22, the City's leases have a lease liability balance of $126,688. The balance of the lease revenue was $11,797. Principal and Interest Expected to Maturity Business -Type Activities Principal Interest Governmental Activities Fiscal Year Payments Principal Interest Total Fiscal Year Payments Payments Payments 2023 $ 27,349 $ 2,414 $ 29,763 2024 27,953 1,856 29,809 2025 27,853 1,256 29,109 2026 27,166 644 27,810 2027 3,204 41 3,245 $ 113,525 $ 6,211 $ 119,736 NOTE 11 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Governmental Business -type $ 92,579 $ 28,214 370,318 112,853 $ 462.897 $ 141.067 The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: As of year end, the governmental fund had no long-term debt. Business -type activities: In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with an interest rate of 3.25% and semi-annual payments of $12,332 for 20 years. Current portion Noncurrent portion Page 43 $ 22,211 58,698 $ 80,909 Business -Type Activities Principal Interest Total Fiscal Year Payments Payments Payments 2023 $ 4,225 $ 108 $ 4,333 2024 3,767 52 3,819 2025 3,090 29 3,119 2026 2,081 7 2,088 Balance $ 13,163 $ 196 $ 13,359 NOTE 11 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Governmental Business -type $ 92,579 $ 28,214 370,318 112,853 $ 462.897 $ 141.067 The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: As of year end, the governmental fund had no long-term debt. Business -type activities: In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with an interest rate of 3.25% and semi-annual payments of $12,332 for 20 years. Current portion Noncurrent portion Page 43 $ 22,211 58,698 $ 80,909 Beginning Governmental Activities Balance Additions Reductions Ending Balance Lease Liability $ 141,108 $ 27,583 $ 113,525 141,108 27,583 113,525 Beginning Business -Type Activities Balance Additions Reductions Ending Balance Lease Liability $ $ 17,120 $ 3,957 $ 13,163 $ 17,120 3,957 13,163 NOTE 11 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Governmental Business -type $ 92,579 $ 28,214 370,318 112,853 $ 462.897 $ 141.067 The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: As of year end, the governmental fund had no long-term debt. Business -type activities: In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with an interest rate of 3.25% and semi-annual payments of $12,332 for 20 years. Current portion Noncurrent portion Page 43 $ 22,211 58,698 $ 80,909 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 16) NOTE 11 - 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 $3,266 for 20 years, and a maturity date of April 27, 2035. Loan closed January 31, 2011. 81,644 $ 9,974,645 Less current portion 852,545 Noncurrent portion $ 9,122,100 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 2022. Available Principal $ 323,487 $ 8,176,513 The Water Revenue Bonds, Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of $110,330. The bond carries interest rates between 2 and 4.75% and a maturity date of September 1, 2026. Bonds Payable: Net Premium Principal Total Water Revenue Bond $ 29,421 $ 605,000 $ 634,421 29,421 605,000 634,421 Less current portion 7,355 145,000 152,355 Noncurrent portion $ 22.066 —L --:L60 .000 —L--482 .066 Bond premiums, net amortization totaled $29,421. 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: Less current portion Noncurrent portion Due To/Due From $ 496,606 96,067 $ 400,539 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 Page 44 Due to Due to $ 3,473,571 $ 3,473,571 $ 3,473,571 $ 3,473,571 Outstanding DEQ line of credit at zero percent interest, with biannual payment of $5,499 for 20 years, and a maturity date of November 1, 2030. Loan closed April 22, 2010. $ 93,590 DEQ line of credit at zero percent interest, with biannual payment of $204,750 for 20 years, and a maturity date of April 27, 2035. Loan closed March 5, 2015. 5,118,755 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. 4,680,656 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. 81,644 $ 9,974,645 Less current portion 852,545 Noncurrent portion $ 9,122,100 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 2022. Available Principal $ 323,487 $ 8,176,513 The Water Revenue Bonds, Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of $110,330. The bond carries interest rates between 2 and 4.75% and a maturity date of September 1, 2026. Bonds Payable: Net Premium Principal Total Water Revenue Bond $ 29,421 $ 605,000 $ 634,421 29,421 605,000 634,421 Less current portion 7,355 145,000 152,355 Noncurrent portion $ 22.066 —L --:L60 .000 —L--482 .066 Bond premiums, net amortization totaled $29,421. 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: Less current portion Noncurrent portion Due To/Due From $ 496,606 96,067 $ 400,539 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 Page 44 Due to Due to $ 3,473,571 $ 3,473,571 $ 3,473,571 $ 3,473,571 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 16) NOTE 11 - Long-term Debt and Accrued Compensation (Continued) Annual Debt Service Requirements for leases, bonds and notes payable Year Ending Governmental Activities Business -type Activities September 30 Principal Interest Principal Interest 2023 $ $ $ 1,903,658 $ 41,796 2024 1,908,974 33,288 2025 1,933,311 23,185 2026 1,907,087 12,732 2027 1,603,408 1,382 2028-2032 7,225,629 - 2033-2035 2,851,606 - Compensated absences $ $ $ 19,333,673 $ 112,383 Changes in long-term liabilities Long-term liability activity for the year was as follows NOTE 12- Conduit Debt Obligations Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to lease will expire in the year 2043. There are no voluntary or limited obligations in regards to this Certificate of Participation. NOTE 13 - 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, buildings, 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 recognized 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 recognized a satisfaction of a receivable of $16,051,030 from the CIAWWCA. Page 45 Beginning Ending Due within Balance Additions Reductions Balance one year Governmental activities Compensated absences $ 464,430 $ 533,998 $ 535,531 $ 462,897 $ 92,579 $ 464,430 $ 533,998 $ 535,531 $ 462,897 $ 92,579 Long-term portion $ 370,318 Beginning Ending Due within Balance Additions Reductions Balance one year Business -type activities Bonds payable $ 745,000 $ $ 140,000 $ 605,000 $ 145,000 Notes payable 19,903,088 1,174,415 18,728,673 970,823 Compensated absences 162,781 205,324 227,038 141,067 28,214 $ 20,810,869 $ 205,324 $ 1,541,453 $ 19,474,740 $ 1,144,037 Long-term portion $ 18,330,703 NOTE 12- Conduit Debt Obligations Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to lease will expire in the year 2043. There are no voluntary or limited obligations in regards to this Certificate of Participation. NOTE 13 - 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, buildings, 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 recognized 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 recognized a satisfaction of a receivable of $16,051,030 from the CIAWWCA. Page 45 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 16) NOTE 14- Stewardship, Compliance and Accountability A. Deficit Fund Balance At September 30, 2022, the City had a deficit fund balance in the amount of $2,310,284 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 a cost-sharing multiple -employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits: The Base Plan provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are based on members' years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. Member and Employer Contributions: Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by stature at 60% of the employer rate for general employees and 74% for police and firefighters. As of June 30, 2022 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 $758,759 for the year ended September 30, 2022. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30,2022, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022, 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, 2022, the City's proportion was .1611476 percent. Page 46 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 16) NOTE 15 - Pension Plan (Continued) Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: (continued) For the year ended September 30, 2022, the City recognized pension expense (revenue) of $1,645,367. At September 30, 2022, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: $172,626 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, 2022. 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, 2022 the beginning of the measurement period ended June 30, 2021 is 4.6 and 4.6 for the measurement period June 30, 2022. 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, 2022: 2023 Deferred Deferred 821,609 Outflows of Inflows of 2026 Resources Resources Differences between expected and actual experience $ 697,962 $ 28,330 Changes in assumptions or other inputs 1,034,786 - Net difference between projected and actual earnings on pension plan investments - - Changes in the employer's proportion and differences between the employers contributions and the employer's proportionate contributions 1,465,580 45,893 City contributions subsequent to the measurement date 172,626 - $ 3,370,954 $ 74,223 $172,626 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, 2022. 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, 2022 the beginning of the measurement period ended June 30, 2021 is 4.6 and 4.6 for the measurement period June 30, 2022. 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, 2022: 2023 $ 756,828 2024 821,609 2025 379,993 2026 1,165,675 Actuarial Assumptions: Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year's earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59- 1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2022 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 3.05% Investment rate of return 6.35%, net of investment expenses Cost -of -living adjustments 1% 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, 2022 is based on the results of an actuarial valuation date July 1,2022. Page 47 NOTE 15 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 16) Pension Plan (Continued) Actuarial Assumptions: (continued) Contributing Members, Service Retirement Members, and Beneficiaries (continued) The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward- looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System's asset allocation. The assumptions and the System's formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System's assets. The best -estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2022. Asset Class DB Plans Sick Leave Fixed Income 30.0% 50.0% US/Global Equity 55.0% 39.3% International Equity 15.0% 10.7% Cash 0.0% 0.0% Total 100.0% 100.0% Discount Rate: The discount rate used to measure the total pension liability was 7.05%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans' net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. 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: Current 1% Decrease Discount Rate 1% Increase 5.35% 6.35% 7.35% Employer's proportionate share of the net pension liability (asset) 11,35%,11 6,347,214 2,373,525 Pension plan fiduciary net position: Detailed information about the pension plan's fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the pension plan: At September 30, 2022, 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. Page 48 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 16 OF 16) NOTE 16 - Risk Management The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of substantial losses The City has established a Health Plan Trust for medical benefits provided to City employees and covered dependents. Health benefits were self-funded up to a specific stop loss amount of $50,000, and an aggregate attachment point of $803,735 for 2022. Coverage from a private insurance company is maintained for individual claims in excess of $50,000 and for total claims in excess of the aggregate attachment point.. All claims handling procedures are performed by a third -party claims administrator. Incurred but not reported claims have been accrued as a liability based upon a professional actuary estimate. 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 claims and expenses. The claims liability of $93,540 reported as incurred but not reported in the Health Plan Trust is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. NOTE 17 - Subsequent Events Subsequent events were evaluated up to March 28, 2023, the date the financial statements were available to be issued. Page 49 REQUIRED SUPPLEMENTARY INFORMATION c CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED SEPTEMBER 30, 2022 51 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources Property taxes $ 5,744,550 $ 5,744,550 $ 6,095,966 $ 351,416 Franchise fees - - 254,956 254,956 Intergovernmental income 1,660,745 1,660,745 2,009,264 348,519 Court revenue 28,549 28,549 Parks revenue 19,500 19,500 13,133 (6,367) Licenses, permits and fines 42,500 42,500 368,406 325,906 Grants 30,000 30,000 516,533 486,533 Fire protection and prevention 8,750 8,750 23,963 15,213 Law enforcement - - 10,433 10,433 Leases and rents 75,000 75,000 129,209 54,209 Interest income 125,000 125,000 118,175 (6,825) Donations - - 518,427 518,427 Charges for services - - 2,700 2,700 Other resources 257,500 257,500 14,844 (242,656) Amounts available for appropriations 7,963,545 7,963,545 10,104,558 2,141,013 Charges to appropriations General government 606,095 606,095 914,597 (308,502) Law enforcement 4,216,000 4,216,000 3,646,501 569,499 Fire control 1,952,000 1,952,000 1,859,209 92,791 Parks and recreation 370,100 370,100 727,783 (357,683) Community services 745,350 745,350 593,428 151,922 Capital outlays 74,000 74,000 5,449,148 (5,375,148) Lease capital outlays - - 141,108 (141,108) Debt service - Principle retirement and lease finance - - 25,648 (25,648) Interest expense - - 177 (177) Total charges to appropriations 7,963,545 7,963,545 13,357,599 (5,394,054) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (3,253,041) (3,253,041) Other Financing Sources Proceeds from certificate of participation - - 3,573,335 3,573,335 Proceeds from Leases - - 141,108 141,108 Proceeds from sale of assets - -79,272 79,272 - - 3,793,715 3,793,715 NET CHANGE IN FUND BALANCE - - 540,674 540,674 BEGINNING FUND BALANCE - - 2,912,732 2,912,732 ENDING FUND BALANCE $ - $ - $ 3,453,406 $ 3,453,406 51 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2022 Resources Property taxes Intergovernmental Highway user's revenue Grant revenue Road and bridge Interest Income Other revenues Amounts available for appropriations Charges to appropriations Highway Streets amd Roads Salaries and personnel benefits Supplies Utilities Building maintenance Professional services Street signing and marking Street construction and maintenance Equipment maintenance Capital outlays Miscellaneous expenses Debt Service Principle retirement and lease finance interest expense 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 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) $ 927,000 $ 927,000 $ 944,984 $ 17,984 $ 1,214,168 $ 1,214,168 450,000 450,000 - $ (450,000) 163,000 163,000 - $ (163,000) 10,444 $ 10,444 337,000 337,000 4,290 $ (332,710) 1,877,000 1,877,000 2,173,886 296,886 - - 1,618,017 (1,618,017) 801,150 801,150 - 801,150 7,500 7,500 - 7,500 15,500 15,500 - 15,500 10,000 10,000 - 10,000 25,000 25,000 - 25,000 61,000 61,000 - 61,000 459,000 459,000 - 459,000 57,000 57,000 - 57,000 415,850 415,850 583,568 (167,718) 25,000 25,000 - 25,000 - - 3,474 (3,474) 1,877,000 1,877,000 2,205,059 (328,059) (31,173) (31,173) - - 93,354 93,354 93,354 93,354 62,181 62,181 BEGINNING FUND BALANCE - - (2,372,465) (2,372,465) ENDING FUND BALANCE $ - - $(2,310,284) $(2,310,284) 52 CITY OF CHUBBUCK, IDAHO Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years* 2022 2021 2020 2019 2018 2017 2016 2015 Employer's portion of the net pension liability (asset) 0.001611476 0.001644693 0.001641301 0.001625296 0.001606905 0.001542148 0.00145924 0.001459012 Employer's proportionate share of the net pension liability (asset) $ 6,347,214 $ (129,895) $ 3,811,318 $ 1,855,230 $ 2,370,213 $ 2,423,992 $ 2,958,104 $ 1,921,281 Employer's covered -employee payroll $ 6,327,525 $ 6,112,874 $ 5,820,108 $ 5,496,835 $ 5,142,733 $ 4,764,551 $ 4,225,127 $ 4,072,262 Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll 100.31% -2.12% 65.49% 33.75% 46.09% 50.88% 70.01% 47.18% Plan fiduciary net position as a percentage of the total pension liability 83.09% 100.36% 88.22% 93.79% 91.69% 90.68% 87.26% 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, 2022 53 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, 2022. 54 CITY OF CHUBBUCK, IDAHO Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years 2022 2021 2020 2019 2018 2017 2016 2015 Statutorily required contribution $ 765,724 $ 741,954 $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contributions in relation to the statutorily required contribution $ 765,724 $ 741,954 $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contribution (deficiency) excess $ - $ - $ - $ - $ - $ - $ - $ - Employer's covered -employee payroll 6,254,019 $ 6,154,443 $ 6,009,444 $ 5,597,869 $ 5,318,395 $ 4,568,504 $ 4,536,572 $ 4,225,217 Contributions as a percentage of covered - employee payroll 12.24% 12.06% 11.80% 11.49% 11.17% 11.94% 11.11% 11.10% GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. Data is reported as a measurement of September 30, 2022. 54 CITY OF CHUBBUCK, IDAHO NOTES TO REQUIRED SUPPLEMENTARY INFORMATION NOTE 1 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Basis of Budgetary Accounting The City is required by State law to adopt annual budgets on all governmental funds that cover a period from October 1, through September 30. All adopted budgets are prepared in accordance with the modified accrual basis of accounting and are adopted on a basis consistent with generally accepted accounting principles. B. Budgetary Information GENERAL FUND General government The City had expenditures in excess of budget of $3,253,041 in the general government due to an increase of general expenditures for the expansion and remodel of office space. The City received $3,573,335 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 $31,173 due to an increase of expenditures related to and capital outlays. The City received $93,354 in proceeds from Certificates of Participation to cover the expenditures over budget. 55 OTHER SUPPLEMENTARY INFORMATION Q: CITY OF CHUBBUCK, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2022 57 Special Revenue Law Street Juvenile Road Total Fire Control Enforcement Park Guarantee Referral Court Projects Parks Nonmajor Impact Fees Impact Fees Impact Fees Fund Fund Fund Fund Fund Funds ASSETS Cash $ 151,068 $ 125,832 $ 596,824 $ 212,341 $ 1,239 $ 131,578 $ 169,659 $ 377,179 $ 1,765,720 FUND BALANCES Committed, reported in: Special revenue fund $ 151,068 $ 125,832 $ 596,824 $ 212,341 $ 1,239 $ 131,578 $ 169,659 $ 377,179 $ 1,765,720 57 CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 58 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 $ 248 $ 207 $ 914 $ 471 $ 7 $ 267 $ 319 $ 719 $ 3,152 Other revenues 50,786 38,240 321,200 20,400 - - 430,626 51,034 38,447 322,114 471 7 20,667 319 719 433,778 EXPENDITURES Other purchased services - - - 192,384 3,874 38,614 - - 234,872 - - - 192,384 3,874 38,614 - 234,872 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 51,034 38,447 322,114 (191,913) (3,867) (17,947) 319 719 198,906 OTHER FINANCING SOURCES Transfers in (out) - - - - - - - NET CHANGE IN FUND BALANCES 51,034 38,447 322,114 (191,913) (3,867) (17,947) 319 719 198,906 BEGINNING FUND BALANCE 100,034 87,385 274,710 404,254 5,106 149,525 169,340 376,460 1,566,814 ENDING FUND BALANCE $ 151,068 $ 125,832 $ 596,824 $ 212,341 $ 1,239 $ 131,578 $ 169,659 $ 377,179 $ 1,765,720 58 LIABILITIES Current Liabilities Accounts payable 17,604 - 17,604 17,604 17,604 - 17,604 17,604 Noncurrent Liabilities 17,604 - 17,604 17,604 NET POSITION Net investment in capital assets 4,938 - 4,938 6,225 Unrestricted - 346,779 346,779 317,145 $ 4,938 $ 346,779 $ 351,717 $ 323,370 59 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2021 Employee Central Health Garage Benefit 2022 2021 Fund Fund Totals Totals ASSETS Current assets Cash and cash equivalents $ - $ 346,779 $ 346,779 $346,128 Accounts receivable 17,604 - 17,604 17,604 346,779 364,383 346,128 Noncurrent assets Restricted assets Capital assets 261,085 - 261,085 261,085 Accumulated depreciation (256,147) - (256,147) (254,860) 4,938 - 4,938 6,225 22,542 346,779 369,321 352,353 LIABILITIES Current Liabilities Accounts payable 17,604 - 17,604 17,604 17,604 - 17,604 17,604 Noncurrent Liabilities 17,604 - 17,604 17,604 NET POSITION Net investment in capital assets 4,938 - 4,938 6,225 Unrestricted - 346,779 346,779 317,145 $ 4,938 $ 346,779 $ 351,717 $ 323,370 59 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 OPERATING REVENUES Interest earnings Service revenue OPERATING EXPENSES Administration Personnel benefits Repairs and maintenance Equipment and supplies Travel, meetings, and training Fuels and lubricants Utilities Depreciation OPERATING INCOME (LOSS) CHANGES IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION Central Garage Employee Health Benefit 2022 2021 $ - $ 651 $ 651 $455 331,798 - 331,798 360,800 331,798 651 332,449 361,255 - - - 69 - - - 5,534 13,766 - 13,766 19,046 276,413 - 276,413 332,853 48 - 48 3,182 2,610 - 2,610 1,236 9,978 - 9,978 6,528 1,287 - 1,287 1,287 304,102 - 304,102 369,735 27,696 651 28,347 (8,480) 27,696 651 28,347 (8,480) (22,758) 346,128 323,370 331,850 $ 4,938 $ 346,779 $ 351,717 $ 323,370 CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2022 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2021 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: 651 651 386 346,128 346,128 345,742 $ - $ 346,779 $ 346,779 $ 346,128 Cash and cash equivalents $ - $ 346,779 $ 346,779 $346,128 Cash and cash equivalents - Restricted - - - - $ - $ 346,779 $ 346,779 $ 346,128 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME (LOSS) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation (Increase) decrease in assets Accounts receivable Increase (decrease) in liabilities Accounts payable Total adjustments NET CASH PROVIDED BY OPERATING ACTIVITIES 61 Employee Central Health Garage Benefit Fund Fund 2022 2021 $ 27,696 $ 651 $ 28,347 $ (8,480) 1,287 - 1,287 1,287 (17,604) - (17,604) - (11,379) - (11,379) 7,579 (27,696) - (27,696) 8,866 $ - $ 651 $ 651 $ 386 Employee Central Health Garage Benefit Fund Fund 2022 2021 $ 314,194 $ 651 $ 314,845 $ 361,255 (314,194) - (314,194) (355,335) - - - (5,534) - 651 651 386 651 651 386 346,128 346,128 345,742 $ - $ 346,779 $ 346,779 $ 346,128 Cash and cash equivalents $ - $ 346,779 $ 346,779 $346,128 Cash and cash equivalents - Restricted - - - - $ - $ 346,779 $ 346,779 $ 346,128 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES OPERATING INCOME (LOSS) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation (Increase) decrease in assets Accounts receivable Increase (decrease) in liabilities Accounts payable Total adjustments NET CASH PROVIDED BY OPERATING ACTIVITIES 61 Employee Central Health Garage Benefit Fund Fund 2022 2021 $ 27,696 $ 651 $ 28,347 $ (8,480) 1,287 - 1,287 1,287 (17,604) - (17,604) - (11,379) - (11,379) 7,579 (27,696) - (27,696) 8,866 $ - $ 651 $ 651 $ 386 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2022 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources Property taxes $ - $ - $ - $ - Interest income - - 3,152 3,152 Donations - - - - Other resources - -430,626 430,626 Amounts available for appropriations - - 433,778 433,778 Charges to appropriations Street guarantee fund - - 192,384 (192,384) Juvenile referral fund - - 3,874 (3,874) Court fund - - 38,614 (38,614) Road projects fund - - - - Parks fund - -- - Total charges to appropriations - - 234,872 (234,872) NET CHANGE IN FUND BALANCE - - 198,906 198,906 BEGINNING FUND BALANCE - - 1,566,814 1,566,814 ENDING FUND BALANCE $ - $ - $ 1,765,720 $ 1,765,720 G! STATISTICAL SECTION 63 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 65-72 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 73-76 These schedulers contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 77-78 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 79-80 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. 64 City of Chubbuck Net Position By Components Last Ten Fiscal Years (Accrual -Basis Accounting) 65 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Governmental activities: Invested in capital assets, net of related debt $ 10,153,123 $ 11,396,599 $ 10,137,975 $ 11,138,839 $ 16,829,117 $ 24,019,218 $ 26,473,293 $ 28,622,260 $ 32,641,830 $ 42,901,054 Restricted - - - - - - - - - - Unrestricted 3,592,593 4,130,936 4,532,072 6,181,447 3,212,484 547,753 (381,048) (1,695,666) (1,091,874) (4,373,190) Total governmental activities net position $ 13,745,716 $ 15,527,535 $ 14,670,047 $ 17,320,286 $ 20,041,601 $ 24,566,971 $ 26,092,245 $ 26,926,594 $ 31,549,956 $ 38,527,864 Business -type activities Invested in capital assets, net of related debt $ 5,460,743 $ 6,091,493 $ 6,086,514 $ 6,814,991 $ 9,217,942 $ 11,612,979 $ 11,876,681 $ 16,363,939 $ 41,932,621 $ 43,392,235 Restricted 165,781 167,481 165,181 166,731 168,131 164,850 166,100 167,200 168,150 168,950 Unrestricted 14,006,605 16,145,285 18,460,974 21,272,113 22,001,056 21,704,355 25,076,744 24,496,821 5,378,964 7,687,826 Total business -type activities net position $ 19,633,129 $ 22,404,259 $ 24,712,669 $ 28,253,835 $ 31,387,129 $ 33,482,184 $ 37,119,525 $ 41,027,960 $ 47,479,735 $ 51,249,011 Primary government Net investment in capital assets $ 15,613,866 $ 17,488,092 $ 16,224,489 $ 17,953,830 $ 26,047,059 $ 35,632,197 $ 38,349,974 $ 44,986,199 $ 74,574,451 $ 86,293,289 Restricted 165,781 167,481 165,181 166,731 168,131 164,850 166,100 167,200 168,150 168,950 Unrestricted 17,599,198 20,276,221 22,993,046 27,453,560 25,213,540 22,252,108 24,695,696 22,801,155 4,287,090 3,314,636 Total primary government net position $ 33,378,845 $ 37,931,794 $ 39,382,716 $ 45,574,121 $ 51,428,730 $ 58,049,155 $ 63,211,770 $ 67,954,554 $ 79,029,691 $ 89,776,875 65 66 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2013 2015 2016 2014 2017 2018 2019 2020 2021 2022 Expenses Governmental activities: General Government $ 352,910 $ 443,813 $ 542,494 $ 896,297 $ 880,217 $ 862,299 $ 836,698 $ 1,537,463 $ 1,348,508 $ 1,153,148 Law enforcement 2,782,655 2,771,003 2,868,345 3,188,507 3,310,717 3,447,266 3,492,557 3,896,661 3,288,219 3,922,815 Fire Control 1,313,575 1,335,240 1,519,108 1,360,246 1,307,106 1,417,951 1,556,572 1,939,749 1,802,233 2,166,198 Building Inspection 163,631 172,439 172,946 199,277 199,336 217,171 246,220 28,004 371,732 - Street 1,122,746 1,450,965 1,524,819 1,487,702 1,426,385 1,293,629 1,210,550 2,042,497 1,764,251 2,121,982 Parks & Recreation 494,692 484,041 529,372 591,638 601,054 653,878 623,328 636,713 802,354 879,101 Health and welfare 39,552 51,165 41,171 76,884 83,293 90,621 80,049 88,129 91,539 630,746 Other special funds 5,150 350 - 20,196 150 1,600 17,100 43,181 4,425 234,872 CIAWWC Authority 4,574 2,930 2,930 609,036 609,036 - - - - - Total governmental activities expenses 6,279,485 6,711,946 7,201,185 8,429,783 8,417,294 7,984,416 8,063,075 10,212,397 9,473,261 11,108,862 Business -type activities: Water 1,466,297 1,560,406 1,781,501 1,793,535 1,726,443 2,111,162 2,028,807 2,440,008 2,742,104 3,494,695 Sewer 2,072,020 1,709,310 2,200,476 2,319,135 2,363,009 2,649,245 2,705,251 3,174,444 2,868,693 3,707,757 Sanitation 1,116,071 1,219,283 1,060,218 1,221,934 1,637,470 1,732,030 1,626,740 1,916,682 1,969,580 2,460,458 Health Plan Trust - - - - - - - - 1,346,956 1,646,714 CIAWWC Authority 609,036 609,036 609,063 306,104 3,800 Total business -type activities program expenses 4,654,388 4,488,999 5,042,195 5,334,604 5,726,922 7,101,473 6,969,834 8,140,197 9,233,437 11,313,424 Total primary government program expenses 10,933,873 11,200,945 12,243,380 13,764,387 14,144,216 15,085,889 15,032,909 18,352,594 18,706,698 22,422,286 66 Program Revenues Governmental activities: Charges for services: 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 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 203,578 134,555 298,505 365,049 414,674 323,186 399,415 342,244 379,116 497,615 - - 35,311 28,918 31,942 29,940 34,221 28,081 27,335 38,982 191,317 232,992 197,261 211,041 214,172 237,675 176,925 61,832 5,009 23,963 - - - - - 13,165 17,468 1,292 8,493 - 4,955 7,203 9,762 10,589 12,728 149,681 14,758 6,125 16,889 15,833 - - - - 10,980 - - - - - 128,818 33,200 48,000 43,890 71,329 84,653 179,095 652,897 2,345,551 1,034,960 - - 916,767 2,667,268 2,354,109 3,644,635 1,019,354 1,253,033 2,253,204 5,322,013 528,668 407,950 1,505,606 3,326,755 3,109,934 4,482,935 1,841,236 2,345,504 5,035,597 6,933,366 2,582,932 2,422,542 2,680,920 2,783,945 2,728,684 2,896,320 2,983,977 2,944,986 3,167,282 3,256,843 3,182,335 3,093,116 3,583,861 3,657,738 3,803,714 3,979,134 4,229,957 4,163,168 4,403,367 4,749,986 1,649,604 1,727,680 1,731,740 2,169,627 2,192,420 1,978,239 1,930,472 1,952,196 2,044,405 2,223,905 - - - - - - - - 1,484,058 1,714,040 - - 66,915 21,960 95,330 54,900 - 11,328 134,662 93,730 - - - - - - - - - 228,000 1,045,754 2,785,144 3,228,076 3,285,586 7,414,871 7,243,338 8,007,849 8,611,310 8,859,480 9,242,338 10,212,120 11,940,824 14,382,088 15,230,360 7,943,539 7,651,288 9,513,455 11,938,065 11,969,414 13,725,273 12,053,356 14,286,328 19,417,685 22,163,726 Net(Expense)/Revenue Governmental activities (5,750,817) (6,303,996) (5,695,579) (5,103,028) (5,307,360) (3,501,480) (6,221,839) (7,866,893) (4,437,664) (4,175,496) Business -type activities 2,760,483 2,754,339 2,965,654 3,276,706 3,132,558 2,140,865 3,242,286 3,800,627 5,148,651 3,916,936 Total primary governmental net (expense)/revenue (2,990,334) (3,549,657) (2,729,925) (1,826,322) (2,174,802) (1,360,615) (2,979,553) (4,066,266) 710,987 (258,560) 67 General Revenues and other Changes in Net Position Governmental activities: General Property taxes and sales tax Franchise fees Intergovernmental Leases and rents Interest income Proceeds from sale of assets Gain on sale of assets Capital contributions Other revenue Transfers in (out) CIAWWC Authority Total governmental activities Business -type activities: Interest income Capital contributions Gain on sale of assets Other revenue Transfers in (out) Total business -type activities Total primary government Changes in Net Position Governmental Activities Business -type activities Total primary government 68 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 4,982,426 5,292,450 5,296,480 5,366,613 5,642,004 5,975,483 6,499,369 7,123,630 4,790,711 7,001,435 192,151 203,790 198,493 199,194 201,328 203,950 189,494 186,818 195,483 254,956 955,679 903,149 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 3,241,504 3,223,432 90,843 66,152 - - - - - - - - 60,367 60,651 76,828 90,432 98,064 157,760 182,445 160,617 97,869 131,771 - 11,154 - - - - 34,788 - 18,038 19,282 - 54,759 78 6,345 - 79,272 2,254,771 1,286,887 - - - - - - - - 89,066 14,366 41,828 766,042 763,697 199,888 186,953 36,711 735,459 462,538 - (3,000) - - - - (534,080) - - - 228,000 228,000 - - - - - - - - 8,888,091 8,063,599 6,653,333 7,753,267 8,028,674 7,965,788 7,927,865 8,701,242 9,061,026 11,153,404 644 574 - - - 4,000 106,283 105,808 24,178 (159,885) 261,081 13,217 - - - - - - - 2,400 - 2,530 86,100 736 11,252 - 2,000 800,418 7,626 - - - - - - - - - 4,599 3,000 100 534,080 - 264,125 16,791 2,630 86,100 736 15,252 640,363 107,808 824,596 (147,660) 9,152,216 8,080,390 6,655,963 7,839,367 8,029,410 7,981,040 8,568,228 8,809,050 9,885,622 11,005,744 3,137,274 1,759,603 957,754 2,650,239 2,721,314 4,464,308 1,706,026 834,349 4,623,362 6,977,908 3,024,608 2,771,130 2,968,284 3,362,806 3,133,294 2,156,117 3,882,649 3,908,435 5,973,247 3,769,276 $ 6,161,882 $ 4,530,733 $ 3,926,038 $ 6,013,045 $ 5,854,608 $ 6,620,425 $ 5,588,675 $ 4,742,784 $ 10,596,609 $ 10,747,184 68 69 City of Chubbuck Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 2013 2015 2016 2017 2014 2018 2019 2020 2021 2022 General fund Unassigned $ 2,708,737 $ 2,933,821 $ 2,952,093 $ 3,410,321 $ 3,939,114 $ 1,239,050 $ 107,771 $ (589,351) $ 540,267 $ 1,143,122 Total General Fund 2,708,737 2,933,821 2,952,093 3,410,321 3,939,114 1,239,050 107,771 (589,351) 540,267 1,143,122 All Other Governmental Funds Committed 490,894 511,696 554,175 565,911 453,040 516,555 658,913 910,503 1,566,814 1,765,720 Total all other governmental funds $ 490,894 $ 511,696 $ 554,175 $ 565,911 $ 453,040 $ 516,555 $ 658,913 $ 910,503 $ 1,566,814 $ 1,765,720 69 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 70 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Revenues: Property taxes and sales tax $ 4,984,949 $ 5,295,493 $ 5,349,772 $ 5,375,566 $ 5,627,360 $ 5,930,753 $ 6,405,974 $ 7,131,017 $ 4,895,548 $ 7,040,950 Franchise fees 192,151 203,790 198,493 199,194 201,328 203,950 189,494 186,818 195,483 254,956 Intergovernmental 955,679 903,149 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 3,241,504 3,223,432 Court Revenue - - 35,311 28,918 31,942 29,940 34,221 28,081 27,335 28,549 Parks revenue 1,720 2,668 5,402 7,629 10,733 7,729 8,670 2,409 14,275 13,133 License, permits and fines 203,578 134,555 219,868 289,199 320,860 231,180 308,615 220,174 262,953 368,406 Grants 302,500 14,800 466,000 248,290 336,433 43,629 109,076 585,950 2,334,053 516,533 Fire protection and prevention 191,317 232,992 197,261 211,041 214,172 237,675 176,925 61,832 5,009 23,963 Law enforcement - - - - - - - - - 10,433 Leases and rents 90,843 66,152 78,637 75,850 93,814 92,006 90,800 122,070 116,163 129,209 Interest income 60,367 60,651 76,828 90,432 98,064 157,760 182,445 160,617 97,869 131,771 Donations 54,318 18,400 38,000 23,600 40,149 41,024 70,019 66,947 11,498 518,427 Charges for services 3,235 4,535 4,360 2,960 12,975 155,117 23,556 5,008 11,107 2,700 Other revenues 89,066 14,366 41,827 19,063 65,897 86,449 184,022 249,999 720,616 449,760 Total Revenues 7,129,723 6,951,551 7,733,425 7,883,446 8,377,308 8,591,160 9,187,423 10,008,043 11,933,413 12,712,222 70 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 71 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Expenditures: General government 326,399 393,539 483,135 574,204 496,074 580,806 621,568 1,303,835 1,072,664 914,597 Law enforcement 2,669,035 2,695,807 2,843,478 2,960,661 3,062,347 3,287,172 3,354,522 3,507,675 3,550,335 3,646,501 Fire control 1,211,430 1,234,101 1,431,180 1,213,866 1,181,308 1,300,583 1,463,484 1,652,703 1,738,732 1,859,209 Building inspection 163,631 172,439 174,432 181,199 186,059 212,747 244,749 8,913 395,491 - Street 1,054,574 1,356,339 1,365,190 1,336,127 1,270,359 1,136,919 1,054,240 1,722,677 1,437,020 1,618,017 Parks and recreation 437,882 442,246 498,932 513,091 502,709 552,176 530,705 509,997 722,129 727,783 Community services - - - - - - - - - 593,428 Health and welfare 39,552 51,165 41,171 76,884 83,293 90,621 80,049 88,129 91,539 - Street guarantee fund 5,000 - - - - - - - - - other purchased services - - - - - 234,872 Court fund 150 350 1,500 150 1,600 - - - - Parks fund - - - 18,696 - - 17,100 43,181 4,425 - Capital outlays 968,502 365,442 409,060 333,207 953,944 4,160,478 2,806,886 1,771,351 2,882,122 6,032,716 Lease capital outlays - - - - - - - - - 141,108 Principal retirement and lease finance - Interest expense - - - - - 25,648 CIAWWC Authority 4,574 2,930 458,930 230,930 2,930 3,651 Total Expenditures 6,880,729 6,714,358 7,705,508 7,440,365 7,739,173 11,323,102 10,173,303 10,608,461 11,894,457 15,797,530 Excess (deficiency) of Revenues over (under) Expenditures 248,994 237,193 27,917 443,081 638,135 (2,731,942) (985,880) (600,418) 38,956 (3,085,308) 71 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 72 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Other financing sources (uses): Proceeds from note payable 175,281 155,468 11,680 2,930 Principal payments on leases - - - - Principal payments (249,263) (154,929) (236,050) - - 141,108 Proceeds from certificate of participation 152,278 1,749,674 3,666,689 Interest expense (5,330) - - (4,000) (3,869) (3,737) (3,605) - Proceeds from sale of assets 42,796 11,154 21,153 23,953 13,837 99,393 828 6,345 79,272 Transfers in (out) - (3,000) - - - - - - - Total other financing sources (uses) (36,516) 8,693 32,833 26,883 (222,213) 95,393 (3,041) 154,886 1,746,069 3,887,069 Net Change in Fund Balances 212,478 245,886 60,750 469,964 415,922 (2,636,549) (988,921) (445,532) 1,785,025 801,761 Beginning Fund Balances 2,987,153 3,199,632 3,445,518 3,506,268 3,976,232 4,392,154 1,755,605 766,684 322,056 2,107,081 Ending Fund Balances $ 3,199,632 $ 3,445,518 $ 3,506,268 $ 3,976,232 $ 4,392,154 $ 1,755,605 $ 766,684 $ 321,152 $ 2,107,081 $ 2,908,842 72 City of Chubbuck General Government Tax and Intergovernmental Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) 73 Local Tax Revenues Intergovernmental Revenues Total Local Taxes as Highway Streets Highway User's Intergovernmental a Percentage Fiscal Year Property Tax Franchise Tax & Road Sales Tax Total Local Taxes State Liquor Tax Revenue Court Revenue Road & Bridge Shared Sales Tax Taxes Total Taxes of Total 2013 4,497,017 192,152 - 487,932 5,177,101 154,777 463,463 38,277 72,887 226,276 955,680 6,132,781 84% 2014 4,781,207 203,790 114,496 514,286 5,623,276 152,877 467,297 30,815 66,326 185,833 903,148 6,526,424 86% 2015 4,813,441 198,493 - 536,331 5,548,265 148,641 494,812 35,312 112,443 265,770 1,056,978 6,605,243 84% 2016 4,164,281 199,194 645,147 566,139 5,574,761 158,211 664,004 28,918 198,466 291,023 1,340,622 6,915,383 81% 2017 4,367,685 201,328 671,658 588,016 5,828,687 160,066 674,106 31,942 175,062 314,347 1,355,523 7,184,210 81% 2018 4,342,621 203,950 962,076 626,056 6,134,703 164,971 685,345 29,940 174,663 348,969 1,403,888 7,538,591 81% 2019 4,820,932 189,494 933,810 651,323 6,595,559 184,041 719,995 34,221 121,341 378,229 1,437,827 8,033,386 82% 2020 5,331,506 186,818 853,514 945,996 7,317,834 205,579 718,902 28,081 69,460 193,180 1,215,202 8,533,036 86% 2021 4,000,938 195,483 894,610 - 5,091,031 243,994 941,626 27,335 447,544 1,608,340 3,268,839 8,359,870 61% 2022 $ 5,995,113 $ 254,956 $ 944,984 $ 100,853 $ 7,295,906 $ 223,452 $ 1,043,079 $ 28,549 $ 171,088 $ 1,785,812 $ 3,251,980 $ 10,547,886 69% 73 City of Chubbuck Assessed Valuation and Tax Rate Last Ten Fiscal Years Fiscal Year Real and Personal Tax Roll Utilities Tax Roll Actual Sub Roll Exemptions Home Owner's Exemptions Personal Property Total Assessed Actual Value (including exemptions) Levy Rate Tax Rate Per $1,000 Value 2013 454,554,481 7,573,803 513,109 203,675,558 638,203 666,955,154 0.009969299 9.97 2014 459,147,628 7,502,193 1,138,795 236,839,910 - 704,628,526 0.009967676 9.97 2015 461,440,210 7,884,559 1,017,251 238,171,372 81,774 708,595,166 0.009933799 9.93 2016 475,051,058 7,702,297 1,697,797 251,008,396 81,774 735,541,322 0.010140122 10.14 2017 507,182,903 8,152,805 469,490 263,554,022 81,744 779,440,964 0.010188661 10.19 2018 524,061,262 8,420,799 2,493,034 275,948,575 - 810,923,670 0.010636971 10.64 2019 638,286,498 8,626,813 221,259 314,458,115 961,592,685 0.009459658 9.46 2020 728,136,576 9,592,530 4,293,710 342,427,509 1,084,450,325 0.006863105 6.86 2021 807,089,713 10,409,910 1,462,151 426,293,840 1,245,255,614 0.008121184 8.12 2022 * $ 1,115,638,936 $ - $ 12,122,961 $ 462,894,793 $ $ 1,590,656,690 0.006204404 $ 6.20 *Preliminary Assessment Values Source: Bannock County Clerks Office 74 City of Chubbuck Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years (per $1,000 of assessed value) Year City of Chubbuck Base Rates Bannock County Rates County Road & Bridge Rates Overlapping Rates Abatement Rates Portneuf Library Rates Ambulance Service Rates School District 25 Rates Combined Levy Rates 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 2.93 16.52 2022 $ 6.20 $ 3.23 $ 0.31 $ 0.02 $ 0.37 $ 0.24 $ 1.87 $ 12.26 Source: Bannock County Assessors Office (1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck. rN7 City of Chubbuck Principal Taxpayers September 30, 2022 2022 I I 2013 *Estimated Assessment Values Source: Bannock County Assessors Office 76 Percentage of Assessed Total Assessed Percentage of Total Taxpayer Type of Business Valuation Rank Valuation * Assessed Valuation Rank Assessed Valuation IDAHO CENTRAL CREDIT UNION FINANCIAL INSTITUTE $ 53,563,000 1 35.82% $ 16,461,553 2 17.85% PINE RIDGE MALL 1C LLC RETAIL 17,470,000 2 11.68% 12,380,277 3 13.42% SHJH LLC APARTMENTS 15,577,000 3 10.42% - 0.00% POCATELLO/CHUBBUCK SCHOOL DISTRICT EDUCATION 12,502,000 4 8.36% - 0.00% WAL MART REAL ESTATE RETAIL 10,538,000 5 7.05% 9,709,957 5 10.53% GRACE AT CHUBBUCK LLC ASSISTED LIVING 10,347,000 6 6.92% - 0.00% RATLIFF, GARY REAL ESTATE INVESTMENTS 8,187,000 7 5.48% 3,765,100.00 10 4.08% AGREE LIMITED PARTNERSHIP REAL ESTATE INVESTMENTS 8,153,000 8 5.45% - - 0.00% CARMIKE CINEMAS INC. ENTERTAINMENT 6,929,000 9 4.63% 6,062,766 7 6.57% HD DEVELOPMENT OF MARYLAND INC REAL ESTATE DEVELOPMENT 6,264,000 10 4.19% 7,105,536 6 7.70% NEIBAUER CHUBBUCK HOLDINGS LLC - 0.00% 16,531,284 1 17.92% ALLSTATE INSURANCE COMPANY INSURANCE 0.00% 10,774,930 4 11.68% SHOPKO REAL ESTATE LLC RETAIL 0.00% 5,204,568 8 5.64% EMERITOL RIDGE WIND LLC DATABASE 0.00% 4,242,947 9 4.60% Total Top Ten $ 149,530,000 100.00% $ 92,238,918 100.00% *Estimated Assessment Values Source: Bannock County Assessors Office 76 City of Chubbuck Ratios of Outstanding Debt by Type Last Ten Fiscal Years (accrual basis of accounting) Note: The estimated populations for years 2012 and 2014 were not available and so the most current estimate was used for these years. Source: (1) U.S. Census 77 Governmental Activities Business Type Activities (1) Fiscal Sanitation Water Notes Sewer Note Total Primary Estimated Per Year Capital Lease Notes Water Bond DEQ DEQ Government Population Capita 2013 27,739 1,265,080 1,720,000 251,448 16,873,075 20,137,342 14,125 1,426 2014 - 1,130,594 1,610,000 234,833 16,436,562 19,411,989 14,125 1,374 2015 1,076,827 1,495,000 217,757 16,363,232 19,152,816 14,229 1,346 2016 998,848 1,380,000 200,381 15,297,931 17,877,160 14,517 1,231 2017 927,972 1,260,000 181,814 14,445,385 16,815,171 14,644 1,148 2018 847,636 1,135,000 2,746,190 13,592,841 18,321,667 14,869 1,232 2019 764,418 1,010,000 7,530,708 12,740,295 22,045,421 15,316 1,439 2020 678,292 880,000 8,077,582 11,679,735 21,315,609 15,715 1,356 2021 588,999 745,000 8,278,883 11,035,206 20,648,088 15,842 1,303 2022 496,606 605,000 8,257,422 9,974,645 19,333,673 16,032 1,206 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 77 City of Chubbuck Revenue Bond Coverage Water Fund Last Ten Fiscal Years Debt Service Requirements (3) Net Revenue Available for Debt Fiscal Year Gross Revenue (1) Operating Expense (2) Service Principal Interest Total 2012 2,411,854 1,222,469 1,189,385 100,000 60,068 2013 2,583,576 1,263,607 1,319,969 110,000 58,338 2014 2,423,116 1,351,349 1,071,767 110,000 56,574 2015 2,680,920 1,532,822 1,148,098 115,000 52,863 2016 2,783,945 1,535,492 1,248,453 115,000 55,514 2017 2,728,684 1,472,240 1,256,444 120,000 45,443 2018 2,896,320 1,832,479 1,063,841 125,000 34,175 2019 2,983,977 1,744,722 1,239,255 125,000 32,182 2020 2,944,986 1,959,268 985,718 130,000 28,420 2021 3,167,282 1,951,885 1,215,397 135,000 24,507 2022 3,256,843 2,323,718 933,125 140,000 20,445 (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. 78 Pledge of Revenues Coverage Coverage Requirement (4) 160,068 7.43 5.94 168,338 7.84 6.27 166,574 6.43 5.15 167,863 6.84 5.47 170,514 7.32 5.86 165,443 7.59 6.08 159,175 6.68 5.35 157,182 7.88 6.31 158,420 6.22 4.98 159,507 7.62 6.10 160,445 5.82 4.65 City of Chubbuck Statistical Information Water Fund September 30, 2022 Schedule of Water Revenue and Production For Residential, Commercial, and Government Accounts Total Revenue $ 3,256,843 Estimated number of active customers 4,810 Total water produced (gallons) 1,109,593 Schedule of Water Rates Monthly Base Fee (by meter size) Size Price Circuit Breaker 1" or less $ 27.72 1.5 " 79.81 2" 123.53 3" 256.94 4" 421.11 6" 850.89 8" 1,332.59 10" 2,035.80 $ 19.40 Volumetric charge: $1.33 per 1,000 gallons metered water. Volumetric charge for circuit breaker: $.94 per 1,000 gallons metered water. Water Usage Summary Business 200,190 Car Wash 10,272 City Property 5,052 Church 13,896 County using city property 2,278 Duplex 13,213 Four Plex 29,229 Motel 10,101 Multiple Units 22,823 Unaccupied 13,090 Restaurant 12,137 School 102,778 Single Family 646,962 Three Plex 1,381 Trailer Park 26,191 1,109,593 79 CITY OF CHUBBUCK, IDAHO Ten Largest Water System Customers For The Fiscal Year Ended September 30, 2022 (per 1,000 gallon used) Total Usage 1,109, 593 18.3% % of Total Water Top Ten % of Total Customer Business Type Rank Usage Consumers Usage Pocatello/Chubbuck School District Education 1 100,000 49.3% 9.0% Pine Ridge Mall JC LLC Shopping Center 2 42,362 20.9% 3.8% Alta Project Services LLC Construction Management 3 9,999 4.9% 0.9% 14814 Berkshire Ave. Private Property 4 9,999 4.9% 0.9% Circle Inn Trailer Park Mobile Home Park 5 9,748 4.8% 0.9% Seven Synergy LLC Staffing Services 6 7,693 3.8% 0.7% Pine Ridge Mall JC LLC Shopping Center 7 6,018 3.0% 0.5% Camelot Estate Mobile Home Park 8 6,009 3.0% 0.5% Travelodge Motel 9 5,954 2.9% 0.5% Pine Ridge Idaho LLC Apartment Complex 10 5,007 2.5% 0.5% Total Top Ten Consumers 202,789 100.0% Total Usage 1,109, 593 18.3% City of Chubbuck Statistical Information Sewer Fund September 30, 2022 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue Schedule of Sewer Rates Monthly Base Fee Regular Residential $ 51.08 NWSI Residential 10.45 $ 4,749,986 Circuit Breaker $ 35.78 Commercial rate for businesses North of the Interstate is $7.22 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $8.47 per $1,000 gallons of water used. NWSI Commercial rate is winter water average usage divided by $6.85 and multiplied by $10.45. 81 Deaton &Company, Chartered BEHON Certified Public Accountants 215 North F, Suite R Pocatello, ID 83201-5278 (208)232-5825 Members "e- Idaho Society of Certified Pubk Accouatants Members of theAmencan Institute of Certified Public Accountants INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of City of Chubbuck, as of and for the year ended September 30, 2022, 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, 2023. Internal Control Over Financial Re 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, 2023 Continuing Disclosure Details Filing Type: FINANCIAL/OPERATING FILING (CUSIP-9 Basei Rule 1Sc2-12 Disclasure Obligor%Contact Infarmation Audited Financial Statements or ACFR for the year ended 09/3012022 Company: City of Chubbuck Posted Date: 03/28/2023 Name: Dan Christensen Associated CUSIPs:4 Address: City, State, Zip: Phone Number. Email: dchnstencen@ciypAchubbuckus submitteYs Contact Information Associated Securities I Modification History Display F,o results search within list H [Pusi [] Fw—A] ❑E I.m�e pexrip[ient A pavLaouMaviu,Oam V Ixuer Xene CITY OF CHUBi BANNM% COUNTY, IWO WATER REVENUE 01/ 11 Ml2m W26 G DOUCHUB9UKEINNNIX%CWNIV,IOAHO BONOFESERIE52011 Schedule for Periodic Bond Covenant Compliance Reporting Borrower/Issuer: City of Chubbuck, Idaho Account #(s): 7110531 Bond Issue(s): City of Chubbuck, Idaho Annual Appropriation Certificates of Participation, Series 2019 Main Contact for EMMA: Dan Christensen and Rich Morgan Email addresses: Dan Christensen dchristensen@cityofchubbuck.us; Rich Morgan rmorgan@cityofchubbuck.us Annual Requirements Date due Document(s) II ►�l ALAM., Comments Post Y/N 3/29 ANNUAL REPORT. Pursuant to Information Reporting Agreement Section 3(a) & 3(b), y City to provide the audited financial statements and other financial, statistical and operating data contained in the Official Statement (updated Tables 3-11), no later than 180 days after the close of prior Fiscal Year (September 30th), due roughly 3/29. If EMMA reportable: The Securities and Exchange Commission (SEC) has taken a strong stance regarding the timeliness of interim and annual continuing disclosure compliance reporting on EMMA. Please make every effort to meet the due date requirements on your compliance items. The rules require disclosure of late or non-compliance which could mean the reporting of your non-compliance on offering documents for the next financing you may want to complete. If not EMMA reportable: Your Bondholders and/or Lenders insist on the timely reporting of required financial information. Please make every effort to meet the due date requirements on your compliance items so we can forward these items to them as requested.