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HomeMy WebLinkAbout2024ri 19 A 0 11 ul CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS Page Title Page 1 Table of Contents 2-3 Introductory Section 4 Letter of Transmittal 5-7 List of Principal Officials 8 Organizational Chart 9 Financial Section Independent Auditor's Report 10-12 Management Discussion and Analysis 13-22 Basic Financial Statements: Statements of Net Position 23 Statements of Activities 24 Balance Sheets - Governmental Funds 25 Statements of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 26-27 Statements of Position - Proprietary Funds 28 Statements of Revenues, Expenses, and Changes in Net Position - Proprietary 29 Statements of Cash Flows - Proprietary Funds 30-31 Notes to Financial Statements 32-48 Required Supplementary Information 49 Budgetary Comparison Schedule - General Fund 50 Budgetary Comparison Schedule - Highway, Streets and Roads 51 Schedule of Employer's Share of Net Pension Liability 52 Schedule of Employer Contributions 53 Notes to Required Supplementary Information 54 6 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2024 TABLE OF CONTENTS - CONTINUED Page Other Supplementary Information 55 Combining Balance Sheet - Nonmajor Governmental Funds 56 Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 57 Statements of Net Position - Internal Service Funds 58 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 59 Statements of Cash Flows - Internal Service Funds 60 Budgetary Comparison Schedule - Nonmajor Governmental Funds 61 Statistical Section 62 Statistical Section - Table of Contents 63 Financial Trends 64-71 Revenue Capacity 72-75 Debt Capacity 76-77 Operating Information 78-80 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 81-82 9 INTRODUCTORY SECTION OAVO _51, CHUBBUCI( I o R H 0 www. cityo fchubbuck.us 290 E. Linden Avenue Chubbuck, ID 83202 (208) 237-2400 phone (208) 237-2409 fax MAYOR Kevin England May 22, 2025 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 legislative council. The statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GAAS) by a 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, 2024. 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, 2024. 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 2024 population of 16,590) was incorporated in 1950. Chubbuck is located in the southeastern portion of the State of Idaho. Chubbuck has a land area of 5,90 square miles and is bordered by the City of Pocatello, with its own estimated population of 58,231. The City is located in Bannock County with an estimated population of 91,010. 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, a 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 May 22, 2025, Rich Morgan City Treasurer Daniel Christensen City Accountant CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2024 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 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 Nick Sasser Joey Bowers Aaron Schilhabel Merlin Miller COMMUNITY SERVICES DEVELOPMENT SERVICES CITY OF CHUBBUCK ORGANIZATION CHART PUBLIC LEGAL WORKS I SERVICES IENGINEERING CLERK I INFORMATION TECHNOLOGY HUMAN RESOURCES FINANCE L UTILITY BILLING r HIGHWAY r WATER 1 WASTEWATER I SANITATION STREETS & ROADS i PLANNING I BUILDING PARKS 9 FIRE I POLICE ANIMAL CONTROL Deaton & Company, Chartered Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208) 232-5825 Members of the Idaho Society of Certified Public Accountants Members oft he American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Report on the Financial Statements Opinion We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Chubbuck as of and for the year ended September 30, 2024, 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, 2024, 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 2023 audited financial statements and, in our report dated May 3, 2024, 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 May 22, 2025, 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 May 22, 2025 CITY OF CHUBBUCK, IDAHO Management's Discussion and Analysis For the Year Ended September 30, 2024 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, 2024. 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 $105,641,042 (net position). • The City's net position increased by $5,959,678. Approximately 45 percent of this increase, $2,673,060, is attributed to capital contributions. • At the end of the current fiscal year, the unassigned general fund balance was $9,768,450 or 97 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $329,198, and operating expenses increased by $510,919. These differences are due to a combination of increases in services rendered and increases in operating costs, respectively. • During the current fiscal year, City of Chubbuck's governmental and business -type liabilities had a decrease of $1,786,891 from $29,850,995 to $28,064,104. The 6 percent decrease was primarily due to a reduction in accounts payable, unearned revenue, and net pension liabilities. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Chubbuck's basic financial statements. The City's basic financial statements are comprised of three components: 1) government -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all the City's assets, deferred outflows, and liabilities with deferred inflows, with the difference between each reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City's is improving or deteriorating. The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All changes in the assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g., uncollected taxes and earned but unused compensated absences). 13 Both government -wide financial statements distinguish functions of the City of Chubbuck that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Chubbuck include general government and administration, public safety, parks, and highway streets and roads. The business -type activities of the City include water and sewer, and sanitation operations. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated from specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All the City of Chubbuck funds can be divided into two categories: governmental funds and proprietary funds. Governmental Funds. Governmental funds are used to account for the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near-term financing equipment. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Chubbuck maintains seven individual governmental funds. Information's is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and Highway, Streets, and Road Fund, which are the City's two major governmental funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund date for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget of its general fund, major funds, and its non -major funds. Budgetary comparison schedules have been provided for these funds to demonstrate compliance with these budgets. The basic governmental fund financial statements may be found on pages 23-27 of the City's financials. Proprietary Funds. The City of Chubbuck maintains two different types of proprietary funds: 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 information for all enterprise funds. The Water, Waste Water, and Sanitation funds are major funds, and their information is shown in separate columns. The internal service fund and the non -major enterprise funds are combined into a single, aggregated presentation in the proprietary funds' financial statements. Individual fund data for the non - major enterprise fund is provided in the form of coming in statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget for its proprietary funds. However, the City does not provide budgetary comparison schedules for proprietary funds. The basic proprietary fund financial statements may be found on pages 28-29 of the City's financials. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements may be found on pages 32-48 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. 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 $105,641,042 as of September 30, 2024. The largest portion of the City of Chubbuck's net position is reflected in its net investment in capital assets (e.g., land, building, equipment, improvements, work -in -process, and infrastructure), less accumulated depreciation and any debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide services to citizens; consequently, these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. 15 Below is a summary of the City of Chubbuck's Net Position statement. ASSETS Curren. and o.her assess Noncurrent assess To -.al asses DEFERRED OUTFLOWS Pension LIABILITIES Current liahilities Long-term liabilities outstanding DEFERRED INFLOWS Pension Cerificate of paricipa.ion NET POSITION Ne: inves.men: in capJal assets Res.ric:ed Unres.ric:ed To -.al nes position City of Chubbuck's Net Position GovernmemalAc:ivities BusinessAc To -.@I 2024 2023 2024 2023 2024 2023 5 11,072,563 5 9,721,782 5 27,243,799 5 25,206,296 5 38,316,362 S 34,928,078 954,861 1,729,597 353,168 706,567 1,308,029 2,436,164 1,056,535 1,603,275 3,331,737 3,869,559 4,388,272 5,472,834 8,119,034 8,467,064 5,047,645 5,359,389 13,166,679 13,826,453 49,345,262 48,801,763 43,944,017 44,796,281 93,289,279 93,598,044 - - 168,800 164,600 168,800 164,600 2542,255 4,124,985 14,725,218 10,029,396 12,182,963 5,904,411 S 46,803,007 S 44,676,778 S 58,838,035 5 54,990,277 5105,641,042 S 99,667,055 The restricted portion of the City of Chubbuck's net position, $168,800, represents resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $12,182,963, may be used to meet the City's ongoing obligation to citizens and creditors. As of September 30, 2024, the City reported positive balances in the two categories of net position, 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, 84 percent of the total liabilities are made up of noncurrent liabilities. The total assets are 74 percent made up of noncurrent assets. Governmental activities. Governmental activities' key elements are broken down in the following charts. The general activities increased net position by $2,111,920, and the business -type activities increased net position by $3,847,758. The City of Chubbuck's direct charges to users of governmental services totaled $781,913. These charges are for park rentals, building permits and other fees related to public safety and administration. The general government accounts for 84 percent of the total charges for services. Parks and recreation accounts for 11 percent of total charges for services. 16 Below is summary of the City of Chubbuck's Changes in Net Position. City of Chubbuck's Changes in Net Position 17 Governmental Activities Business Activities Total 2024 2023 2024 2023 2024 2023 REVENUES Program revenues: Charges for services $ 781,913 $ 555,506 $13,494,548 $13,165,350 $ 14,276,461 $ 13,820,856 Operating grants and contributions 186,524 3,347,408 15,598 17,955 202,122 3,365,363 Capital grants and contributions 1,227,343 2,211,701 1,445,717 1,540,842 2,673,060 3,752,543 General revenue: Property taxes 8,827,191 7,132,094 - - 8,827,191 7,132,044 Franchise fees and intergovernmental 3,925,854 3,324,267 - - 3,925,854 3,324,267 Other 1,141,273 1,435,127 773,117 453,114 1,914,390 1,488,241 Total Revenues 16,090,048 17,706,103 15,728,980 15,177,261 31,819,078 32,883,364 EXPENSES General government 1,575,664 1,304,632 - - 1,575,664 1,304,532 Public safety 7,498,049 6,304,599 7,498,049 5,304,599 Highway, streets and roads 2,860,038 2,490,247 2,860,038 2,490,247 Parks and recreation 1,119,534 913,966 1,119,534 913,966 Community services 924,893 533,745 924,893 533,745 Water - - 3,553,690 3,514,768 3,553,690 3,514,768 Sewer 3,970,973 3,872,609 3,970,973 3,872,604 Sanitation 2,502,186 2,449,593 2,602,186 2,449,593 Health plan trust 1,754,373 1,595,925 1,754,373 1,595,925 CIAwwCAuthorlty - 3,100 - 3,100 Total expenses 13,978,178 11,557,189 11,881,222 11,435,995 25,859,400 22,993,184 NET CHANGE IN NET POSITION 2,111,920 6,148,914 3,847,758 3,741,265 5,959,678 9,890,180 NET POSITION beginning 44,691,087 38,527,854 54,990,277 51,249,011 99,681,364 89,776,875 NET POSITION ending $46,803,007 $44,676,778 $ 58,838,035 $54,990,277 $105,641,042 $ 99,667,055 17 Revenue by Source - Government Activities Other 1,141,273 , 7% Franchise fees and intergovernmental 3,925,854 , 2490 Charges for services $781,913 , 5 Operating grants and contributions $ 186,524, 1% Property taxes 5,827,191, 55% 0 capital grants and contributions $ 1,227,343, 8% Expenses and Program Revenues — Governmental Activities 8,000, 000 7,000, 000 6,000, 000 5,000, 000 4,000, 000 3,000, 000 2,000, 000 1,000,000 Ca S €` C+° ■ Expenses ■ Revenue • The majority of the City of Chubbuck's general governmental activities' revenue is received from property tax of 55 percent. • When all taxes, franchise fees, and intergovernmental revenues are added together, they make up 96 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 2024. No extraordinary expenses were paid, or revenues were received during the year. The most significant major fund in the City is the general fund. The notable transactions within the general fund this year mainly consisted of law enforcement expenses, fire department expenses, and street maintenance. 19 Business -type activities. Businesses -type activities' key elements are broken down in the following charts. Revenue by Source - Business Type Activities Other 773,117 4.92% 1 Capital grants and dedicated assets S1,461,315 9.29% Iq PV_ Charges for services $13,494,548 85.79% Expenses and Program Revenue - Business Type Activities $7,000,000 $c.0oo.000 $5.000.000 $4,000,000 $3.000.000 $2,000,000 $1.000.000 Water Sewer Sanitation R_-ver4-- aExperse J • One of the major sources of the City of Chubbuck's business -type activities' revenue is received from service revenue. Currently, the City of Chubbuck's business type activities do not use property taxes for any type of funding. • When revenues are compared to expenses, it shows that all the City of Chubbuck's business - type activities are self-supporting. 20 Financial Analysis of the Government's Funds As noted earlier, the City of Chubbuck uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Chubbuck's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Chubbuck's financing requirements. Unreserved fund balance may serve as a useful measure of the government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year the City of Chubbuck's governmental funds reported combined ending fund balances of $10,010,799. Of which $7,458,166 of this total is unassigned fund balance. The general fund is the chief operating fund of the City of Chubbuck. In the general fund, the City budgeted for no change in the fund balance. The total governmental operating revenues were more than operating expenditures by $1,775,214. With the other financing sources and uses, the net change in the governmental funds increased $1,874,793 for fiscal year 2024. The net change in the highway, streets, and roads fund was $0. As a measure of liquidity, it may be useful to compare both total unassigned fund balance and total fund expenditures. The total unassigned fund balance represents 57 percent of total governmental fund expenditures. Proprietary funds. The City of Chubbuck's proprietary fund statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net positions of the respective proprietary funds are Water: $7,139,961, Sewer: $5,583,193, and Sanitation: $758,497. The water fund had an increase in net position of $1,576,646; the sewer fund had an increase in net position of $2,225,705; and the sanitation fund had a decrease in net position of $(121,388). General Fund Budgetary Highlights The City made a revision of $463,025 to the original appropriations upon the approved of the City Council. The general fund's actual revenues were greater than the budget and expenditures were less than the budget. The difference accounts for a $1,813,934 increase in the general fund balance. The major variances in expenditures were due to a decrease in law enforcement and fire control expenditures. The highway, streets and roads fund actual revenues and expenditure were less than the budget. The difference accounts for a $0 change in the highway, streets, and roads fund balance. This was a result after a transfer out of $445,683. 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, 2024, amounts to $102,793,086 (net of accumulated depreciation). This investment in capital assets includes land, vehicles, equipment, other improvements, and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year was $14,765,683. The increase in assets includes development contributions of $2,673,060. 21 Land Building & Improvements Vehicles & Equipment Infrastructure Work in Progress Water Rights Total City of Chubbuck's Capital Assets Governmental Activities Business Activities 2024 2023 2624 2023 Total 2024 2023 5 3,248,479 5 3,207,337 S 2,159,817 5 2,159,817 5 5,408,296 5 5,367,154 17,377,350 7,919,735 54,969,516 53,523,799 72,346,866 61,443,534 5,456,530 5,188,961 8,986,312 8,986,312 14,4-42,842 14,175,273 25, 815, 857 23, 227.124 - - 25, 815.857 23.227,124 9,172,949 19,950,734 1,204,795 989,097 10,377,744 20,939,831 - - 2,421,167 2,421,167 2,421,167 2,421,167 5 61,071,165 S 59,493,891 S 69,741,607 5 68,080,192 5 130,812,772 5 127,574,083 Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 40 of the City's financials. Long-term debt. At the end of the current fiscal year, the City of Chubbuck had a total long-term debt outstanding of $18,789,807. Of this amount, $8,477,571 is comprised of notes to the Department of Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a remaining balance of $315,000 used for purchasing water rights. The City had a note payable for water tank repairs with a remaining balance of $35,760, a note payable for water distribution with remaining balance of $8,836,693, and a note payable for sanitation system setup with remaining balance of $301,643. The City purchased a fire aerial ladder truck with a debt obligation balance of $823,140. In the State of Idaho statutes section 50-3108, the State of Idaho mandates a general obligation debt limit of 9 percent of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has general obligation debt with a remaining balance of $823,140. The limit totaled $163,513,409 based on 2024's actual assessed values of 1,816,815,657. Therefore $162,690,269 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 11 on pages 42-44 of this report. Request for information. The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have any questions about this report or need any additional financial information, contact the Treasurer at 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400. 22 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2024 23 See accompanying notes to financial statements Governmental Business -type Development Activities Activities Total Authority ASSETS Current assets Cash and cash equivalents $ 13,216,756 $ 22,994,029 $ 36,210,785 $ 782,934 Property taxes receivable 588,333 - 588,333 19,345 Intergovernmental receivables 293,567 1,658 295,225 - Interest receivable 28,658 3,210 31,868 Lease receivable 114,546 - 114,546 Grant receivable 39,505 6,350 45,855 Internal balances due to/from (3,209,566) 3,209,566 - - Prepaid expenses - 13,632 13,632 4,312 Other accounts receivable 764 1,015,354 1,016,118 - 11,072,563 27,243,799 38,316,362 806,591 Noncurrent assets Restricted assets Bond reserves - 168,800 168,800 - Utility deposits 588,617 588,617 Investments - 3,450,980 3,450,980 - Capital assets 61,071,166 69,741,607 130,812,773 1,260,321 Accumulated depreciation (11,725,904) (16,293,783) (28,019,687) - Lease and subscripton assets 330,954 41,847 372,801 Accumulated amortization of assets (103,484) (23,366) (126,850) - 49,572,732 57,674,702 107,247,434 1,260,321 60,645,295 84,918,501 145,563,796 2,066,912 DEFERRED OUTFLOWS Pension 954,861 353,168 1,308,029 - LIABILITIES Current liabilities Accounts payable 606,880 626,836 1,233,716 381 Accrued payroll 124,199 62,170 186,369 - Accrued bond interest - 1,150 1,150 Interest payable 14,641 62,267 76,908 Unearned revenue and lease liabilities 110,195 144,650 254,845 Current portion compensated absences 108,151 38,416 146,567 - Current portion of bonds payable - 162,355 162,355 58,781 Current portion of long-term debt 92,469 1,515,538 1,608,007 - Health Claims incurred but not reported - 129,738 129,738 Utility deposits - 588,617 588,617 - 1,056,535 3,331,737 4,388,272 59,162 Noncurrent liabilities Bonds payable, net unamortized premium - 167,356 167,356 1,144,102 Notes payable 730,671 16,136,129 16,866,800 - Lease and subscription obligation 173,145 12,182 185,327 Accrued compensated absences 432,604 153,663 586,267 Net pension liabilities 4,285,160 1,584,922 5,870,082 - 5,621,580 18,054,252 23,675,832 1,144,102 6,678,115 21,385,989 28,064,104 1,203,264 DEFERRED INFLOWS Certificate of participation 8,119,034 5,047,645 13,166,679 - NET POSITION Net investment in capital assets 49,345,262 43,944,017 93,289,279 - Restricted - 168,800 168,800 2,368,237 Unrestricted (2,542,255) 14,725,218 12,182,963 (1,504,589) $ 46,803,007 $ 58,838,035 $ 105,641,042 $ 863,648 23 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2024 Component Unit: Chubbuck Development Authority $ 2,241,219 - Program Revenues Total $ 2,241,219 - Operating Capital Net General Business -type Charges for Grants and Grants and (Expense) Development Activities Expenses Services Contributions Contributions Revenue Authority Functions/Programs $ (2,241,219) General revenues Primary Government: Property taxes 8,827,191 - 8,827,191 491,759 Governmental activities: 229,853 229,853 - Intergovernmental income General government $ 1,575,664 $ 654,341 $ - $ $ (921,323) $ Law enforcement 4,939,468 41,031 56,439 14,035 (4,841,998) Fire control 2,558,581 - - 21,686 (2,558,581) Highway, streets, and roads 2,860,038 - - 1,186,200 (1,673,838) Parks and recreation 1,119,534 86,541 92,850 41,143 (899,000) Community services 635,927 - 30,000 - (605,927) Other special funds 288,966 $ 863,648 7,235 - (281,731) 13,978,178 781,913 186,524 1,227,343 (11,782,398) Business -type activities Water 3,553,690 3,704,591 15,598 1,038,986 1,205,485 Sewer 3,970,973 5,484,618 - 406,731 1,920,376 Sanitation 2,602,186 2,385,540 - - (216,646) Health plan trust 1,754,373 1,919,799 - 165,426 11,881,222 13,494,548 15,598 1,445,717 3,074,641 Total primary government $ 25,859,400 $ 14,276,461 $ 202,122 $ 2,673,060 $ (8,707,757) $ Component Unit: Chubbuck Development Authority $ 2,241,219 - $ (2,241,219) $ 2,241,219 - $ (2,241,219) General Business -type Development Activities Activities Total Authority Net $(11,782,398) $ 3,074,641 $ (8,707,757) $ (2,241,219) General revenues Property taxes 8,827,191 - 8,827,191 491,759 Franchise fees 229,853 229,853 - Intergovernmental income 3,696,001 - 3,696,001 - Interest income 586,785 751,431 1,338,216 40,754 Gain from asset disposal 14,035 - 14,035 - Other revenue 540,453 21,686 562,139 118,000 13,894,318 773,117 14,667,435 650,513 NET CHANGE IN NET POSITION 2,111,920 3,847,758 5,959,678 (1,590,706) BEGINNING NET POSITION - RESTATED 44,691,087 54,990,277 99,681,364 2,454,354 ENDING NET POSITION $ 46,803,007 $ 58,838,035 $ 105,641,042 $ 863,648 24 See accompanying notes to financial statements LIABILITIES Accounts payable CITY OF CHUBBUCK, IDAHO $ 441,756 $ $ 604,683 Accrued payroll BALANCE SHEET 15,674 124,199 Accrued compensated absences GOVERNMENTAL FUNDS 16,703 108,151 Interest Payable SEPTEMBER 30, 2024 3,210 14,641 Due to other funds Highway, 3,209,566 3,209,566 Capital assets used in governmental activities are not financial resources and, therefore, Streets, Other 4,061,240 Lease assets are not reported in the funds, net of amortization General and Roads Governmental expenditures and therefore are not reported in the funds: Fund Fund Funds Total ASSETS are applicable to future periods and, therefore, are not reported in the fund: Cash $ 9,485,073 $ 1,179,050 $ 2,552,633 $ 13,216,756 Accounts receivable 764 - - 764 Property and sales taxes receivable 573,970 14,363 The assets and liabilities of the internal services funds applicable to governmental 588,333 Intergovernmental receivables 93,044 196,656 Long-term liabilities are not due and payable in the current period and therefore are not 289,700 Interest receivable 28,658 - Lease liability 28,658 Lease receivable 114,546 - Accrued compensated absences 114,546 Grant receivable 39,505 - Net position of governmental funds 39,505 $10,335,560 $ 1,390,069 -T2,552,633 $ 14,278,262 LIABILITIES Accounts payable $ 162,927 $ 441,756 $ $ 604,683 Accrued payroll 108,525 15,674 124,199 Accrued compensated absences 91,448 16,703 108,151 Interest Payable 11,431 3,210 14,641 Due to other funds - 3,209,566 3,209,566 Capital assets used in governmental activities are not financial resources and, therefore, 374,331 3,686,909 4,061,240 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - taxes 82,584 13,444 96,028 Unavailable revenues - leases 110,195 - 110,195 192,779 13,444 - 206,223 FUND BALANCES Committed - - 2,552,633 2,552,633 Unassigned 9,768,450 (2,310,284) 7,458,166 9,768,450 (2,310,284) 2,552,633 10,010,799 $10,335,560 $ 1,390,069 $ 2,552,633 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 $10,692,128. 49,345,262 Lease assets are not reported in the funds, net of amortization 227,470 Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds: Property tax 96,028 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 954,861 Deferred inflows of resources related to pensions - Deferred inflows of resources related to certificates of participation (8,119,034) Internal service funds are used to charge the costs of certain activities, such as equipment maintenance to individual funds. The assets and liabilities of the internal services funds applicable to governmental activities are included in governmental activities in the statement of net position. 1,670 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Lease liability (173,145) Note payable (823,140) Accrued compensated absences (432,604) Net pension asset/(liability) (4,285,160) Net position of governmental funds $ 46,803,007 1007 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 REVENUES Property taxes Franchise fees Intergovernmental income Court Revenue Parks revenue Licenses, permits and fees Grants Leases and rents Interest income Donations Charges for services Other revenues EXPENDITURES General government Law enforcement Fire control Highway, streets, and roads Parks and recreation Community services Other purchased services Capital outlays Lease and subscription capital outlays Debt service Equipment note payable principle expense Principal lease and subscription expense Interest expense EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Proceeds from leases and subscriptions Proceeds from sale of assets Transfers in (out) NET CHANGE IN FUND BALANCES BEGINNING FUND BALANCE - RESTATED ENDING FUND BALANCE $ 9,768,450 $ (2,310,284) $ 2,552,633 $ 10,010,799 26 See accompanying notes to financial statements Highway, Streets, Other General and Roads Governmental Fund Fund Funds Total $ 7,661,995 $ 1,151,424 $ - $ 8,813,419 229,853 - - 229,853 2,003,628 1,692,373 - 3,696,001 41,031 - - 41,031 83,382 - - 83,382 496,883 - - 496,883 179,289 - - 179,289 116,192 - - 116,192 504,398 38,059 44,328 586,785 7,235 - - 7,235 3,159 - - 3,159 56,643 33,682 450,128 540,453 11,383,688 2,915,538 494,456 14,793,682 1,276,841 - - 1,276,841 4,654,838 - - 4,654,838 2,226,915 - - 2,226,915 - 2,274,010 - 2,274,010 957,126 - - 957,126 592,855 - - 592,855 - - 288,966 288,966 108,000 188,651 144,631 441,282 98,378 2,166 - 100,544 89,750 - - 89,750 65,421 3,964 - 69,385 42,726 3,230 - 45,956 10,112,850 2,472,021 433,597 13,018,468 1,270,838 443,517 60,859 1,775,214 83,378 2,166 - 85,544 14,035 - - 14,035 445,683 (445,683) - - 543,096 (443,517) - 99,579 1,813,934 - 60,859 1,874,793 7,954,516 (2,310,284) 2,491,774 8,136,006 $ 9,768,450 $ (2,310,284) $ 2,552,633 $ 10,010,799 26 See accompanying notes to financial statements (Continued) CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTALFUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Total Reconciliation of the change in fund balances - total governmental funds to the change in net position of governmental activities: Net change in fund balances - total governmental funds $ 1,874,793 Amounts reported for governmental activities in the Statement of Activities are different because: Governmental funds report capital outlays as expenditures while governmental activities report depreciation expense to allocate those expenditures over the life of the assets. Capital asset contributions from other entities are not recognized as a revenue for governmental purposes, but are required to be recognized on the Statement of Activities: Contributed capital assets 1,227,343 Capital asset purchases capitalized 441,282 Depreciation expense (1,125,126) 543,499 The net affect of sales transactions involving capital assets The net affect of lease agreements that are reported in the Statement of Activities, but do not provide current financial resources and are not reported in the governmental funds 21,875 Unavailable revenues are not recorded as current period receipts 13,772 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 (2,634) 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 (42,512) Net proceeds from debt 89,750 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 (734,653) Governmental funds do not report infows and outflows from the certificate of participation. However, in the Statement of Net Activities report these as lease expense net of amortized deferred inflows: Certificate of participation proceeds in excess of deferred inflows 348,030 Change in net position $ 2,111,920 27 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 28 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust Total 2023 Funds 2024 Funds 2023 ASSETS Current assets Cash and cash equivalents $ 6,431,797 $12,945,230 $2,095,278 $1,521,724 $ 22,994,029 $ 20,864,513 $ - $ - Accounts receivable 366,758 427,658 214,533 6,405 1,015,354 954,427 5,525 6,149 Grant receivable 6,350 - - - 6,350 3,078 - - Interest receivable - 3,210 3,210 3,342 Prepaid expense 13,632 13,632 37,456 6,818,537 13,376,098 2,309,811 1,528,129 24,032,575 21,862,816 5,525 6,149 Noncurrent assets Restricted assets Bond reserves 168,800 - - - 168,800 164,600 - - Utility deposits 584,127 3,790 700 588,617 543,682 Investments 2,978,285 - 472,695 3,450,980 2,334,420 - - Capital assets 33,992,356 27,773,552 7,714,614 69,480,522 67,819,107 261,085 261,085 Accumulated depreciation (6,792,055) (6,163,226) (3,079,803) (16,035,084) (13,908,296) (258,699) (257,434) Lease and subscription assets 14,018 14,018 13,811 41,847 55,518 Accumulated amortization (7,814) (7,814) (7,738) (23,366) (23,621) Due from other funds 3,209,566 3,209,566 3,341,635 30,937,717 24,829,886 5,114,279 60,881,882 60,327,045 2,386 3,651 37,756,254 38,205,984 7,424,090 1,528,129 84,914,457 82,189,861 7,911 9,800 DEFERRED OUTFLOWS Pension 130,803 104,642 117,723 - 353,168 706,567 - - LIABILITIES Current Liabilities Accounts payable 264,937 288,123 61,944 8,504 623,508 459,908 5,525 6,149 Payroll payable 21,980 19,219 20,971 - 62,170 47,992 - - Health Claims incurred but not reported - - - 129,738 129,738 108,801 Unearned contributions - - - 144,650 144,650 120,409 Accrued compensated absences 16,640 15,584 6,192 - 38,416 30,904 Current portion of bonds payable 162,355 - - 162,355 152,355 Accrued bond interest 1,150 - - 1,150 1,633 Current portion of long-term debt 351,955 1,060,561 103,022 1,515,538 1,325,780 Accrued note interest 61,446 - 821 62,267 1,071,946 Deposits 584,127 3,790 700 588,617 543,682 1,464,590 1,387,277 193,650 282,892 3,328,409 3,863,410 5,525 6,149 Noncurrent Liabilities Revenue bonds payable, net unamortized premium 167,356 - - - 167,356 329,711 - - Notes payable 8,520,498 7,417,010 198,621 16,136,129 16,432,435 Compensated absences 66,560 62,336 24,767 153,663 123,619 Lease and subscription liabilities 4,106 4,106 3,970 12,182 30,007 Net pension liabilities 587,008 469,607 528,307 1,584,922 1,766,927 9,345,528 7,953,059 755,665 18,054,252 18,682,699 10,810,118 9,340,336 949,315 282,892 21,382,661 22,546,109 5,525 6,149 DEFERRED INFLOWS Certificate of participation 1,770,041 1,776,771 1,500,833 - 5,047,645 5,359,389 - - NET POSITION Net investment in capital assets 17,998,137 21,610,326 4,333,168 43,941,631 44,792,630 2,386 3,651 Restricted for bond service 168,800 - - 168,800 164,600 - - Unrestricted 7,139,961 5,583,193 758,497 1,245,237 14,726,888 10,033,700 - $ 25,306,898 $27,193,519 $5,091,665 $1,245,237 58,837,319 $ 54,990,930 $ 2,386 $ 3,651 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 716 $ 58,838,035 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, 2024 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 29 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust Total 2023 Funds 2024 Funds 2023 OPERATING REVENUES Service revenue $ 3,374,880 $ 5,484,618 $ 2,385,540 $1,919,799 $13,164,837 $ 12,683,284 $ 58,952 $ 102,173 Revenue used as security for revenue bond: Charges for services 329,711 329,711 482,066 3,704,591 5,484,618 2,385,540 1,919,799 13,494,548 13,165,350 58,952 102,173 OPERATING EXPENSES Administration - - - 62,972 62,972 56,799 - - Salaries and wages 837,760 729,209 778,220 - 2,345,189 2,150,426 Personnel benefits 415,627 303,507 376,777 1,230,186 2,326,097 2,132,826 - - Repairs and maintenance 288,189 104,955 721,827 - 1,114,971 1,133,771 14,491 6,432 Equipment and supplies 334,019 219,811 276,744 830,574 851,524 37,696 86,973 Travel, meetings, and training 29,770 14,482 22,895 67,147 42,161 60 15 Telephone and communications 10,375 6,494 6,093 22,962 23,961 - - Utilities 252,191 49,122 15,110 316,423 306,930 6,704 8,753 Treatment -Pocatello - 1,630,031 - 1,630,031 1,624,222 - - Certificate of participation payment 40,118 40,271 34,017 114,406 115,256 - Other purchased services 54,359 142 - 394,971 449,472 400,335 349,584 Professional services 47,892 20,499 13,747 66,244 148,382 168,872 - Bad debt 6,059 13,049 8,663 - 27,771 6,290 - Depreciation 964,826 832,533 329,429 2,126,788 2,059,109 1,266 1,287 Lease and subscription amortization 6,814 6,814 6,283 19,911 19,695 3,287,999 3,970,919 2,589,805 1,754,373 11,603,096 11,092,177 60,217 453,044 OPERATING INCOME 416,592 1,513,699 (204,265) 165,426 1,891,452 2,073,173 (1,265) (350,871) NONOPERATING REVENUE (EXPENSE) Interest income 173,735 299,589 57,421 - 530,745 356,530 2,805 Investment income 184,831 - 32,645 217,476 82,440 - Note interest income - 3,210 - 3,210 3,342 Bond interest expense (11,761) - (11,761) (16,232) Note interest expense (255,245) - (12,333) (267,578) (230,103) Lease and subscription interest expense (54) (54) (48) (156) (181) Grant revenue 15,598 - - 15,598 17,955 Miscellaneous revenue 13,964 2,530 5,192 21,686 10,802 Gain (Loss) from asset disposal 121,068 305,275 82,877 509,220 224,553 2,805 CAPITAL CONTRIBUTIONS Developer contributions 1,038,986 406,731 1,445,717 1,540,842 1,038,986 406,731 1,445,717 1,540,842 CHANGES IN NET POSITION 1,576,646 2,225,705 (121,388) 165,426 3,846,389 3,838,568 (1,265) (348,066) BEGINNING NET POSITION 23,730,252 24,967,814 5,213,053 1,079,811 54,990,930 51,152,362 3,651 351,717 ENDING NET POSITION $ 25,306,898 $27,193,519 $ 5,091,665 $1,245,237 $58,837,319 $ 54,990,930 $ 2,386 $ 3,651 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds 1,369 Change in net position of business -type activities $ 3,847,758 29 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 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 Net cash provided (used) in capital and related financing activities CASH FLOW FROM INVESTING ACTIVITIES Cash paid from investments Interest proceeds Net cash provided by financing activities NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS BEGINNING CASH AND CASH EQUIVALENTS ENDING CASH AND CASH EQUIVALENTS CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents Cash and cash equivalents - Restricted Internal Internal Health Plan Service Service Water Sewer Sanitation Trust Total 2023 Funds 2024 Funds 2023 $ 3,684,170 $ 5,450,139 $2,358,147 $ 1,950,850 $ 13,443,306 $13,128,123 $ 59,576 $116,433 (869,579) (2,121,508) (1,100,386) (1,700,906) (5,792,379) (5,788,998) (59,576) (463,212) (1,139,692) (985,566) (1,092,715) - (3,217,973) (2,965,215) 1,674,899 2,343,065 165,046 249,944 4,432,954 4,373,910 (346,779) - 132,069 132,069 131,936 12,326 - - 12,326 17,977 44,755 300 (120) 44,935 67,597 57,081 132,369 (120) 189,330 217,510 502,119 (644,529) (99,138) (241,548) (1,115,458) (1,284,136) - (12,720) (1,296,856) (42,557) (109,318) (109,734) (92,692) (311,744) (311,742) (8,495) (8,495) (7,486) (24,476) (21,735) 7,078,974 - (215,698) (215,698) (790,146) (899,830) (762,758) (427,734) (2,090,322) (2,281,638) (904,099) - 5,015 (899,084) 17,110 187,699 305,461 62,613 555,773 367,706 (716,400) 305,461 67,628 (343,311) 384,816 115,750 2,018,137 (195,180) 249,944 2,188,651 2,694,598 (346,779) 7,078,974 10,930,883 2,291,158 1,271,780 21,572,795 18,878,197 346,779 $ 7,194,724 $12,949,020 $2,095,978 $ 1,521,724 $ 23,761,446 $ 21,572,795 $ $ $ 6,431,797 $12,945,230 $2,095,278 $ 1,521,724 $ 22,994,029 $20,864,513 $ $ 762,927 3,790 700 767,417 708,282 $ 7,194,724 $12,949,020 $2,095,978 $ 1,521,724 $ 23,761,446 $ 21,572,795 $ $ 30 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 91 See accompanying notes to financial statements Internal Internal Health Plan Service Service Water Sewer Sanitation Trust Total 2023 Funds 2024 Funds 2023 OPERATING INCOME $ 416,592 $ 1,513,699 $ (204,265) $ 165,426 $ 1,891,452 $ 2,073,173 $ (1,265) $ (348,066) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation and amortization 971,640 839,347 335,712 - 2,146,699 2,078,804 1,265 1,287 Pension expense 90,621 26,370 54,402 171,393 157,094 - - Bad debt expense 6,059 13,049 8,663 27,771 6,290 - (Increase) decrease in assets Accounts receivable (20,421) (34,479) (27,393) (6,405) (88,698) (17,302) 11,455 Prepaid expense (13,632) 37,456 23,824 (23,824) - Increase (decrease) in liabilities Accounts payable 200,966 (35,702) (9,953) 53,467 208,778 79,165 (11,455) Payroll payable 4,814 4,327 5,037 - 14,178 7,055 Accrued compensated absences 18,260 16,454 2,843 - 37,557 13,455 - - Total adjustments 1,258,307 829,366 369,311 84,518 2,541,502 $2,300,737 1,265 1,287 NET CASH PROVIDED BY OPERATING ACTIVITIES $ 1,674,899 $ 2,343,065 $ 165,046 $ 249,944 $ 4,432,954 $ 4,373,910 $ $ (346,779) 91 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 17) 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 96 with the exception of those standards not required to be implemented. A. Reporting Entity The City's financial reporting entity comprises the following: Primary Government In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, `The Financial Reporting Entity". Currently, the City reports one component unit; the Chubbuck Development Authority. Discretely Presented Component Units Chubbuck Development Authority (CDA) One component unit reported in the combined financial statements represents the financial balances and transactions of the Chubbuck Development Authority (CDA). CDA is a legally separate entity incorporated under the State of Idaho's urban renewal laws. CDA works with the City to develop blighted areas within the City using tax increment financing 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. B. Basis of Presentation Government -wide Statements The Statement of Net Position and Statement of Activities displays information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business -type activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entity. Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets, liabilities, fund equity, revenues, and expenditures. Funds are organized into three major categories; governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type. b. Total assets, liabilities, revenues, or expenditures of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Governmental Funds General Fund The General Fund is the general operating fund of the City and is always classified as a major fund. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Highway, Streets, and Roads Fund The Highway, Streets, and Roads Fund accounts for revenue and expenditures used for the construction and maintenance of highways, streets, and roads. It is a major fund. Page 32 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 17) NOTE 1 - Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (continued) Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Proprietary Funds Enterprise Funds Enterprise funds are used to account for business -like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. The reporting entity includes the water, sewer, sanitation, and health plan trust. Proprietary funds distinguish "operating" revenues from "non-operating" revenues. Operating revenue is revenue generated from the City's primary business activities. The operating revenues are produced through charges for services. Nonoperating revenue is the portion of the City's revenue that is derived from activities not related to its core operations. The City reports the following major proprietary funds: The Water Fund accounts for the operations involved in collecting and distributing culinary water to the citizens of Chubbuck. The Sewer Fund accounts for operations involved with the collection and treatment of sewer water. The Sanitation Fund accounts for the operations for solid waste removal and disposal. The Health Plan Trust Fund provides optional health care benefits to City employees, dependents, and employees eligible through Cobra. All medical and prescription drug coverages are paid by the City through contributions to the Trust. A third party administers the benefits and receives a fee for processing claims. Internal Service Funds Central Garage Each fund is allocated the costs of operations based on equipment maintenance and repairs to their departments. C. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -like activities are presented using the economic resources measurement focus as defined in item b. below. In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus is used: a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position. Page 33 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 17) NOTE 1 - Summary of Sianificant Accountina Policies (Continued C. Measurement Focus and Basis of Accounting (continued) Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. The effect of interfund activity has been eliminated from the government -wide financial statements. D. Budgets and Encumbrances Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general and highway, streets and roads. All annual appropriations lapse at fiscal year end. Each month the City prepares a financial report that reflects the actual and budgeted financial data. A strict purchase order system is used in controlling and maintaining expenditures within budget categories. This data is reviewed by the City Council. The City does not use the encumbrance method of accounting. E. Cash and Cash Equivalents For the purpose of the Statement of Net Position, "cash and cash equivalents" includes all demand, savings accounts, certificates of deposits, and state investing pools of the City. For the purpose of the proprietary fund Statement of Cash Flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. F. Fair Value Measurements of Assets and Liabilities GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market data obtained from sources independent of the City. Unobservable inputs reflect the City's assumptions about the inputs market participants would use in pricing the asset or liability based on the best information available. The fair value hierarchy is categorized into three levels based on the inputs as follows: Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that City has the ability to access. Since valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these assets and liabilities does not require a significant degree of judgement. Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Level 3 - Valuations based on inputs that are unobservable, that is, inputs that reflect the City's own assumptions. G. Capital Assets Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, right of way and similar items), are assets with an initial, individual cost of more than $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. Page 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 17) NOTE 1 - Summary of Significant Accounting Policies (Continued) G. Capital Assets (continued) Government -wide Statements In the government -wide financial statements, the assets are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated assets which are recorded at their estimated fair value at the date of donation. Estimated historical cost was used to value the majority of the assets acquired prior to September 30, 2003. Governmental fund infrastructure assets were not capitalized prior to October 1, 2003. Depreciation of all exhaustible capital assets is recorded as an allocated expense in the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows: Buildings 20-30 years Other structures 15-20 years Equipment 7-10 years Vehicles 5-7 years Fund Financial Statements In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government -wide statements. H. Restricted Assets Restricted assets include cash and investments of the proprietary fund that are legally restricted as to their use. The primary restricted assets are related to utility deposits and bond reserve requirements. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Lessor/Lessee Leases The financial statements include the adoption of GASB Statement No. 87 Leases, and GASB Statement No. 96 Subscriptions. The primary objective of these statements are to enhance the relevance and consistencesy of information about the City's leasing and subscribing activities. These statements establish a model for lease and subscription accounting based on the principle that these activities are financing the right to use an underlying asset. Under these Statements, a lessee or subscriber is required to recognize a lease or subscription liability and an intangible right -to -use lease or subscription asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. J. Long-term Debt The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the government -wide statements. The long-term debt consists primarily of notes payable, capital leases, capital subscriptions, and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. Debt proceeds are reported as other financing sources. Payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -wide statements. K. Comparative data/reclassifications Comparative total data for the prior year has been presented in the fund financial statements in order to provide an understanding of the changes in assets and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. Page 35 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 17) NOTE 1 - Summary of Significant Accounting Policies (Continued) L. Compensated Absences The City's policies regarding vacation time permit employees to accumulate earned but unused vacation leave. The liability for these unpaid compensated absences is recorded as long-term debt in the government -wide statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements, governmental funds report only the compensated absence liability payable from expendable available financial resources, while the proprietary funds report the liability as it is incurred. M. Equity Classifications Government -wide Statements Equity is classified as net position and displayed in three components: a. Net investment in capital assets - Consists of capital assets including capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages notes, or other borrowings that are attributable to the acquisition, construction, or improvement of these assets. b. Restricted - Consists of assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c. Unrestricted - All other assets that do not meet the definition of "restricted" or "net investment in capital assets." Fund Statements In the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable items- This category includes a portion of net resources that cannot be spent because of their form or because they must be maintained intact. This includes inventories and prepaid items. Restricted items- This category includes resources where limitations are imposed by external entities, such as grantors and creditors, or to comply with laws and regulations of governments. Committed items -This category includes amounts that can only be used for the specific purposes determined by a formal action of the City's highest level of decision-making authority for the City. Commitments may be changed or lifted only by the Council taking the same formal action that imposed the constraint originally. Assigned items -Assigned items represent the City's intent to use certain resources for specific purposes. The City Council may establish the intended use of these funds for a designated purpose. Unassigned items- Represents the remainder of the City's equity in governmental fund -type balances in excess of the aforementioned classifications. It is the City's policy to use unrestricted fund balances in the following order: (1) Committed, (2) Assigned, (3) Unassigned. N. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the City to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. O. Pensions For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiduciary net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Page 36 NOTE 2 - I�C611i=fm NOTE 4 - NOTE 5 - NOTE 6 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 17) Legal Compliance - Budgets Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the City Council a proposed operating budget for the fiscal year commencing the following October 1. The budget is prepared by fund at the function level and includes information on the past year, current year estimates and requested appropriations for the next fiscal year. The City Council holds public hearings and may add to, subtract from or change appropriations, but may not change the form of the budget. Any changes in the budget must be within the revenues and reserves estimated as available to the City or the revenue estimates must be changed by an affirmative vote of a majority of the City Council. After public hearings and before the end of the fiscal year, the City Council formally adopts the budget. Budgetary control is exercised by function at the fund level. The City Manager is authorized to transfer budgeted appropriations within individual funds, but cannot alter the appropriations on a fund level without City Council approval. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, several supplementary appropriations may be necessary. Restricted Assets and Payable from Restricted Assets Assets have been set aside for special items and are restricted for that purpose. Restricted resources are used only after the unrestricted resources are depleted. To date cash has been restricted for the following items: Proprietary Bond reserves Utility deposits Total $ 168,800 588,617 $ 757,417 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 $588,617 at year-end. Property Tax Bannock County has the responsibility of assessing and collecting all property taxes. Taxes levied for the year are payable in two installments due December 20th of the current year and June 20th of the following year. The County remits property taxes collected to the City monthly. Property taxes are recognized as revenue when received for monthly reporting purposes. At year end, an accrual is made to recognize property taxes receivable at year end. At year end, $102,598 in outstanding property taxes were expected to be collected and remitted by the County." Tax Abatements The City has no tax abatement agreements as of September 30, 2024. Cash, Cash Equivalents and Investments Primary Government: Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Restricted Unrestricted Page 37 Balance $ 757,417 36,210,785 $ 36,968,202 NOTE 6 - NOTE 7 - CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 17) Cash, Cash Equivalents and Investments (Continued) Deposits Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end, the carrying amount of the City's deposits (cash and certificates of deposit) was $36,968,202 and the bank balance was $36,923,989. 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 $5,307,314. 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, 2024, the City had the following investments: Maturities More Than Fair Value No Maturity 1-10 Years 10 Years Moody / S&P Money Funds $ 43,409 $ 43,409 $ - $ N/A U.S. Government Bonds 3,450,980 - 3,450,980 Aaa / AA+ Total Investments $ 3,494,389 $ 43,409 $ 3,450,980 $ 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 $ 782,934 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 $782,934. 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 Receivables and Deferred Inflow of Resources -Leases All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging delinquent balance report. Historically 100% of property taxes have been collected, therefore, there is no allowance for uncollectible property tax receivables. Receivables as of year-end for the City's governmental -type funds are as follows: Highway, Streets, General and Roads Total Accounts Receivables 804 804 Allowance for Doubtful Accounts (40) (40) 764 764 Page 38 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 17) NOTE 7 - Receivables and Deferred Inflow of Resources -Leases (Continued) Receivables as of year-end for the City's business -type funds are as follows: Water Sewer Sanitation Health Plan Trust Total Accounts Receivables $ 386,061 $ 450,166 $ 225,824 6,405 $ 1,068,456 Allowance for Doubtful Accounts (19,303) (22,508) (11,291) - (53,102) $ 366,758 $ 427,658 $ 214,533 6,405 $ 1,015,354 For the year ended September 30, 2024, the financial statements include the adoption of GASB Statement No. 87, Leases. The primary objective of this statement is to enhance the relevance and consistency of information about governments' leasing activities. This statement establishes a single model for lease accounting based on the principle that leases are financings of the right to use an underlying asset. Under this Statement, a lessee is required to recognize a lease liability and an intangible right -to -use lease asset, and a lessor is required to recognize a lease receivable and a deferred inflow of resources. For additional information, refer to the disclosures below. The City, as a lessor, had entered into seven lease agreements involving infrastructure, land and structures, and buildings. As of September 30, 2024, the total combined value of the lease receivable was $114,546, the combined value of the deferred inflow of resources was $110,194, and the lease revenue balance was $116,192. Principal and Interest Expected to Maturity Fiscal Year 2025 2026 2027 2028 2029 2030-2033 Governmental Activities Lease Receivable Governmental Activities Deferred Inflow of Resources -Leases NOTE 8 - Concentration of Credit Risk Governmental Activities Principal Interest Payments Payments Total Payments $ 62,998 $ 1,520 $ 64,518 16,661 611 17,272 5,522 478 6,000 5,604 396 6,000 5,687 313 6,000 18,074 426 18,500 $ 114,546 $ 3,744 $ 118,290 Beginning Ending Balance Additions Reductions Balance $ 122,870 $ 49,406 $ 57,730 $ 114,546 122,870 49,406 57,730 114,546 Beginning Ending Balance Additions Reductions Balance $ 117,731 $ 49,406 $ 56,943 $ 110,194 117,731 49,406 56,943 110,194 Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of a deposit. The City manages its exposure to declines in fair value by limiting the average maturity of its deposits to one year or less, or redeemable on demand with no penalty. Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. The City's investments in U.S. government bonds were rated Aaa and AA+ by Moody's and Standard & Poor's Investor Services, respectively. Idaho law requires the City to obtain the safest investment rated by a nationally recognized standard rating service. Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Exclusive of the State of Idaho LGIP, the City's deposits in any one issuer does not represent a concentration of total credit risk. The funds in the State of Idaho LGIP are in a variety of investments which are required to have an A quality credit rating or better. The City is subject to credit risk on deposits in banks that exceed the FDIC maximum insured balance amount. Additionally, the City grants credit to customers in the City for utility service. This extension of credit potentially subjects the City to credit risk. Page 39 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 17) NOTE 9 - Changes in Assets A summary of general capital assets at year end is as follows: Nondepreciable assets Land Work in Process Infrastructures Buildings and Improvements Vehicles and Equipment Accumulated Depreciation Beginning Ending Balance Additions Deletions Balance $ 3,207,337 $ 41,142 $ - $ 3,248,479 19,950,734 657,858 11,435,643 9,172,949 23,227,124 2,588,733 - 25,815,857 7,919,735 9,457,615 - 17,377,350 5,188,961 358,919 91,350 5,456,530 59,493,891 13,104,267 11,526,993 61,071,165 10,692,128 1,125,126 91,350 11,725,904 $ 48,801,763 $ 11,979,141 $ 11,435,643 $ 49,345,261 A summary of proprietary type capital assets at year end is as follows: Nondepreciable assets Land Water Rights Work in Process Buildings and Improvements Vehicles and Equipment Accumulated Depreciation A summary of general lease assets at year end is as follows: Vehicles and Equipment Accumulated Amortization Beginning Ending Balance Additions Deletions Balance $ 2,159,817 $ $ $ 2,159,817 2,421,167 Balance 2,421,167 989,097 215,698 1,204,795 53,523,799 1,445,717 54,969,516 8,986,312 - 8,986,312 68,080,192 1,661,415 69,741,607 14,165,730 2,128,054 16,293,784 $ 53,914,462 $ (466,639) $ $ 53,447,823 Beginning Ending Balance Additions Deletions Balance $ 227,313 $ 83,378 $ 2,554 $ 308,137 227,313 83,378 2,554 308,137 44,533 54,604 2,554 $ 96,583 $ 182,780 $ 28,774 $ - $ 211,554 A summary of proprietary type lease assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Equipment $ 20,950 $ $ 2,554 $ 18,396 20,950 2,554 18,396 Accumulated Amortization 8,549 4,585 2,554 $ 10,580 $ 12,401 $ (4,585) $ - $ 7,816 A summary of general subscription assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Software $ 11,840 $ 17,166 $ 6,189 $ 22,817 11,840 17,166 6,189 22,817 Accumulated Amortization 5,183 7,907 6,189 $ 6,901 $ 6,657 $ 9,259 $ - $ 15,916 A summary of proprietary type subscription assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Software $ 34,568 $ 6,498 $ 17,615 $ 23,451 34,568 6,498 17,615 23,451 Accumulated Amortization 15,073 15,328 17,615 $ 12,786 $ 19,495 $ (8,830) $ - $ 10,665 Page 40 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 17) NOTE 10 - Lease and Subscription Payable Lease The City, as a lessee, had entered into eleven lease agreements involving vehicles and equipment. As of 9/30/24, the total combined value of the lease liability was $179,653. The total combined value of the lease assets, net of amortization, was $219,370. Principal and Interest Expected to Maturity Page 41 Beginning Governmental Activities Ending Governmental Activities Principal Interest Total Fiscal Year Balance Payments Payments Payments 2025 $ 61,094 $ 4,307 $ 65,401 2026 $ 83,378 52,767 2,803 55,570 2027 Beginning 29,243 1,512 30,755 2028 Business -Type Activities 14,169 766 14,935 2029 Balance 14,453 388 14,841 $ - $ 171,726 $ 9,776 $ 181,502 12,392 Business -Type Activities 7,927 Subscription Principal Interest Total Fiscal Year The City had entered into four subscription -based information technology agreements Payments Payments Payments 2025 $ 3,813 $ 100 $ 3,913 2026 3,079 55 3,134 2027 772 23 795 2028 263 2 265 2029 - 0 0 Principal $ 7,927 $ 180 $ 8,107 Page 41 Beginning Ending Governmental Activities Balance Additions Reductions Balance Lease Liability $ 150,796 $ 83,378 $ 62,448 $ 171,726 $ 150,796 $ 83,378 $ 62,448 $ 171,726 Beginning Ending Business -Type Activities Balance Additions Reductions Balance Lease Liability $ 12,392 $ - $ 4,465 $ 7,927 12,392 4,465 7,927 Subscription The City had entered into four subscription -based information technology agreements involving the use of software. As of 9/30/23, the combined value of the subscription liability was $5,676. The total combined value of the subscription assets, net of amortization, was $26581. Principal and Interest Expected to Maturity Governmental Activities Principal Interest Total Fiscal Year Payments Payments Payments 2025 $ 696 $ 54 $ 750 2026 723 27 750 $ 1,419 $ 81 $ 1,500 Business -Type Activities Principal Interest Total Fiscal Year Payments Payments Payments 2025 $ 2,088 $ 162 $ 2,250 2026 2,169 82 2,251 $ 4,257 $ 244 $ 4,501 Governmental Activities Balance Additions Reductions Balance Subscription Liability $ 6,657 $ 17,166 $ 22,404 $ 1,419 $ 6,657 $ 17,166 $ 22,404 $ 1,419 Business -Type Activities Balance Additions Reductions Balance Subscription Liability $ 17,615.00 $ 6,497 $ 19,855 $ 4,257 $ 17,615.00 $ 6,497 $ 19,855 $ 4,257 Page 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 17) NOTE 11 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Governmental Business -type $ 108,151 $ 38,416 432,604 153,663 $ 540,755 $ 192,079 The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: On April 14, 2022, the City issued a debt obligation to purchase an fire aerial ladder truck. Payments are due April 14, beginning April 14, 2023. The debt was issued at 3.03%. The note was issued for $1,000,000 with a annual payment of $117,410 until the maturity date of April 14, 2032. Current portion Noncurrent portion Business -type activities: $ 92,469 730,671 $ 823,140 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 $ 23,690 12,070 $ 35,760 The City was authorized to borrowed $17,569,518 from the Department of Environmental Quality (DEQ) under four (4) separate loans. The four (4) loans have zero percent interest rate and are required to be paid in biannual installments over 20 years. Outstanding DEQ line of credit at zero percent interest, with biannual payment of $5,499 for 20 years, and a maturity date of November 1, 2030. Loan closed April 22, 2010. $ 71,592 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. 4,504,504 DEQ line of credit at zero percent interest, with biannual payment of $212,757 for 20 years, and a maturity date of May 17, 2033. Loan closed April 9, 2013. 3,829,628 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. 71,847 $ 8,477,571 Less current portion 1,060,561 Noncurrent portion $ 7,417,010 With an original loan date of August 23, 2023, the City received a loan award from the Department of Environmental Quality (DEQ) for $9,222,747 at 2.75% interest. Principal and interest shall be paid in equal semi-annual installments of $301,377 over 20 years. The loan is being used to finance the designing and constructing of a well in Copperfield Landing, additional water distribution lines throughout the City, and the Hiline booster station. Current portion Noncurrent portion Page 42 $ 328,265 8,508,428 $ 8,836,693 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 17) NOTE 11 - Long-term Debt and Accrued Compensation (Continued) The Water Revenue Bonds, Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of $110,330. The bond carries interest rates between 2 and 4.75% and a maturity date of September 1, 2026. Bonds Payable: Net Premium Principal Total Water Revenue Bond $ 14,711 $ 315,000 $ 329,711 14,711 315,000 329,711 Less current portion 7,355 155,000 162,355 Noncurrent portion $ 7,356 $ 160,000 $ 167,356 Bond premiums, net amortization totaled $14,711. The bond premium and expenses are amortized over fifteen (15) years, the life of the bond. Bond premium amortization of $7,355 for the year. Notes Payable On June 4, 2008, the City issued a note to purchase assets needed in order to collect sanitation for the City. The note was issued at 5.25%. The note was refinanced in 2009 at 3.5%. The note was issued for $1,375,000 with a monthly payment of $9,321 until the maturity date of June 1, 2027. Current portion Noncurrent portion Due To/Due From $ 103,022 198,621 $ 301,643 On October 1, 2017, the Sewer Enterprise Fund loaned the Highway, Streets and Roads Fund, for the purpose of the Siphon Road Interchange, the principal sum of $4,000,000 with an interest rate of .10% and an annual payment of $135,409.98 for 30 years. The first payment being made on October 1, 2018 and then on the first day of October for each year thereafter until October 1, 2047. Fund Highway, Streets, and Roads Sewer Enterprise Fund Annual Debt Service Requirements for bonds and notes payable Year Ending Seotember 30 2025 2026 2027 2028 2029 2030-2034 2035-2039 2040-2043 Page 43 Due from Due to $ 3,209,566 $ - - 3,209,566 $ 3,209,566 $ 3,209,566 Governmental Activities Business -type Activities Principal Interest Principal Interest $ 92,469 $ 24,941.00 $ 1,493,641 $ 225,679 95,271 22,139 1,488,289 208,154 98,157 19,253 1,320,725 189,624 101,131 16,279 1,242,422 179,864 104,196 13,214 1,253,833 170,079 331,916 20,314 5,973,935 701,817 - - 2,924,412 427,059 - - 2,269,410 116,995 $ 823,140 $ 116,140 $ 17,966,667 $ 2,219,271 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 17) NOTE 11 - Long-term Debt and Accrued Compensation (Continued) Changes in long-term liabilities Long-term liability activity for the year was as follows: Governmental activities Notes payable Compensated absences Business -type activities Bonds payable Notes payable Compensated absences NOTE 12- Conduit Debt Obligations Beginning Ending Due within Balance Additions Reductions Balance one year $ 912,890 $ - $ 89,750 $ 823,140 $ 92,469 $ 487,615 $ 457,278 $ 404,138 $ 540,755 $ 108,151 $ 1,400,505 $ 457,278 $ 493,888 $ 1,363,895 $ 200,620 Long-term portion $ 1,163,275 Beginning Ending Due within Balance Additions Reductions Balance one year $ 460,000 $ - $ 145,000 $ 315,000 $ 162,355 17,758,216 1,046,234 1,152,783 17,651,667 1,515,538 154,523 246,699 209,143 192,079 38,416 $ 18,372,739 $ 1,292,933 $ 1,506,926 $ 18,158,746 $ 1,716,309 Long-term portion $ 16,442,437 Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to lease will expire in the year 2043. There are no voluntary or limited obligations in regards to this Certificate of Participation. NOTE 13- Interfund Transfer Fund General Fund Highway, Streets, and Roads Fund The purpose of the transfer was as follows: Transfers In Transfers Out $ 445,683 $ - - 445,683 $ 445,683 $__445 683 Transfer revenue over expenditures from the Highway, Streets, and Roads Fund to the General Fund. NOTE 14- Stewardship, Compliance and Accountability A. Deficit Fund Balance At September 30, 2024, the City had a deficit fund balance in the amount of $2,310,284 in the Highway, Streets, and Roads fund. The future reduction of an interfund loan will decrease the deficit fund balance. Page 44 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 17) 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, 2024 it was 6.71 % for general employees and 9.83% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.18% general employees and 13.26% for police and firefighters. The City's contributions were $859,747 for the year ended September 30, 2024. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30,2024, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, 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, 2024, the City's proportion was .15691954 percent. For the year ended September 30, 2024, the City recognized pension expense (revenue) of $1,688,153. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 934,527 $ - Changes in assumptions or other inputs 232,531 Net difference between projected and actual earnings on pension plan investments - Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions (106,547) City contributions subsequent to the measurement date 247,518 $ 1,308,029 $ - $247,518 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, 2024. Page 45 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 17) NOTE 15 - Pension Plan (Continued) The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2024 the beginning of the measurement period ended June 30, 2023 is 4.6 and 4.4 for the measurement period June 30, 2024. 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, 2024: 2025 2026 2027 2028 2029 Actuarial Assumptions: $ 289,710 1,094,440 (188,734) (134,904) 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, 2024 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% Contributinq 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, 2024 is based on the results of an actuarial valuation date July 1,2024. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward- looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System's asset allocation. The assumptions and the System's formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System's assets. Page 46 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 16 OF 17) NOTE 15 - Pension Plan (Continued) Actuarial Assumptions: (continued) The best -estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2024. Asset Class DB Plans Sick Leave Fixed Income 30.0% 50.0% US/Global Equity 55.0% 39.3% International Equity 15.0% 10.7% Cash 0.0% 0.0% Total Discount Rate: 100.0% 100.0% The discount rate used to measure the total pension liability was 6.35%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans' net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the Employer's proportionate share of the net pension liability to changes in the discount rate: The following presents the Employer's proportionate share of the net pension liability calculated using the discount rate of 6.35 percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (5.35 percent) or 1 -percentage -point higher (7.35 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.35%) (6.35%) (7.35%) Employer's proportionate share of the net pension liability (asset) 11,154,454 5,870,082 ,553,590 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, 2024, the City reported payables to the defined benefit pension plan of $0 for legally required employer contributions and $0 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE 16 - Risk Management The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of substantial losses The City has established a Health Plan Trust for medical benefits provided to City employees and covered dependents. Health benefits were self-funded up to a specific stop loss amount of $50,000, and an aggregate attachment point of $1,163,891 for 2024. Coverage from a private insurance company is maintained for individual claims in excess of $50,000 and for total claims in excess of the aggregate attachment point.. All claims handling procedures are performed by a third -party claims administrator. Incurred but not reported claims have been accrued as a liability based upon a professional actuary estimate. All funds for the City participate in the program and make payments by way of the Health Insurance Fund to the Health Plan Trust based on actuarial estimates of the amounts needed to pay claims and expenses. The claims liability of $129,738 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 May 22, 2025, the date the financial statements were available to be issued. Page 47 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 17 OF 17) NOTE 18 - Net Position and Fund Balance - Restated Adjustments Governmental Activities: Through September 30, 2023, the City reported the 'Recreation Programs Trust' as a Fiduciary fund. During the fiscal year ending September 30, 2024, the City determined the appropriate administration for this entity is within the governmental activities. Therefore, the beginning net position of Governmental Activities and Fiduciary Funds have been restated. Net positions as of September 30, 2024 have been adjusted as follows: Net Position, Beginning of Year, as previously restated Re -presentation of Chubbuck Health Plan Trust as an Enterprise Fund Net Position, Beginning of Year, as restated Page 48 Governmental Activities Fiduciary Funds $ 44,676,778 $ 14,309 14,309 (14,309) 44,691,087 REQUIRED SUPPLEMENTARY INFORMATION 49 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERALFUND YEAR ENDED SEPTEMBER 30, 2024 Resources Property taxes Franchise fees Intergovernmental income Court revenue Parks revenue Licenses, permits and fines Grants Leases and rents Interest income Donations Charges for services Other resources Amounts available for appropriations Charges to appropriations General government Law enforcement Fire control Parks and recreation Community services Capital outlays Lease and subscription capital outlays Debt service Equipment note payable principle expense Principle retirement and lease finance Interest expense Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from leases and subscriptions Proceeds from sale of assets Transfer in (out) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE - RESTATED ENDING FUND BALANCE Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) $ 7,125,904 $ 7,125,904 $ 7,661,995 $ 536,091 265,000 265,000 229,853 (35,147) 2,162,169 2,162,169 2,003,628 (158,541) - - 41,031 41,031 40,000 40,000 83,382 43,382 280,500 280,500 496,883 216,383 - - 179,289 179,289 100,000 100,000 116,192 16,192 - - 504,398 504,398 - - 7,235 7,235 - - 3,159 3,159 - 463,025 56,643 (406,382) 9,973,573 10,436,598 11,383,688 947,090 975,995 1,439,020 1,276,841 162,179 4,802,325 4,802,325 4,654,838 147,487 2,715,287 2,715,287 2,226,915 488,372 976,480 976,480 957,126 19,354 503,486 503,486 592,855 (89,369) - - 108,000 (108,000) - - 98,378 (98,378) - - 89,750 (89,750) - - 65,421 (65,421) - - 42,726 (42,726) 9,973,573 10,436,598 10,112,850 323,748 - - 1,270,838 1,270,838 - - 83,378 83,378 - - 14,035 14,035 - - 445,683 445,683 - - 543,096 543,096 1,813,934 1,813,934 - - 7,954,516 7,954,516 50 $ 9,768,450 $ 9,768,450 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2024 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources Property taxes $ 1,105,000 $ 1,105,000 $ 1,151,424 $ 46,424 Intergovernmental 1,257,921 1,257,921 1,692,373 434,452 Interest Income - - 38,059 38,059 Other revenues 448,813 448,813 33,682 (415,131) Amounts available for appropriations 2,811,734 2,811,734 2,915,538 103,804 Charges to appropriations Highway Streets amd Roads - - 2,274,010 (2,274,010) Salaries and personnel benefits 887,500 887,500 - 887,500 Supplies 4,000 4,000 - 4,000 Utilities 11,250 11,250 - 11,250 Building maintenance 5,000 5,000 - 5,000 Professional services 15,000 15,000 - 15,000 Street signing and marking 13,000 13,000 - 13,000 Street construction and maintenance 797,134 797,134 - 797,134 Equipment maintenance 347,500 347,500 - 347,500 Capital outlays 136,000 136,000 188,651 (52,651) Lease and subscription capital outlays - - 2,166 (2,166) Miscellaneous expenses 595,350 595,350 - 595,350 Debt Service Principal lease and subscription expense - - 3,964 (3,964) Interest expense - - 3,230 (3,230) Total charges to appropriations 2,811,734 2,811,734 2,472,021 339,713 Excess of revenues over (under) expenditures - - 443,517 443,517 Other financing sources (uses) Proceeds from leases and subscriptions - - 2,166 2,166 Transfer in (out) - - (445,683) (445,683) - - (443,517) (443,517) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE - (2,310,284) (2,310,284) $ - - $(2,310,284) $(2,310,284) 51 Employer's portion of the net pension liability (asset) Employer's proportionate share of the net pension liability (asset) Employer's covered -employee payroll Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll Plan fiduciary net position as a percentage of the total pension liability GASB Statement No. 68 requires ten years of information to be presented in this table. Data reported is measured as of June 30, 2024 52 CITY OF CHUBBUCK, IDAHO Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years` 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 0.0015691954 0.0015265332 0.001611476 0.001644693 0.0016413 0.001625296 0.001606905 0.001542148 0.00145924 0.001459012 $ 5,870,082 $ 6,091,891 $ 6,347,214 $ (129,895) $ 3,811,318 $ 1,855,230 $ 2,370,213 $ 2,423,992 $2,958,104 $ 1,921,281 $ 7,176,519 $ 6,464,312 $ 6,327,525 $ 6,112,874 $ 5,820,108 $ 5,496,835 $ 5,142,733 $ 4,764,551 $4,225,127 $ 4,072,262 81.80% 94.24% 100.31% -2.12% 65.49% 33.75% 46.09% 50.88% 70.01% 47.18% 85.54% 83.83% 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. Data reported is measured as of June 30, 2024 52 GASB Statement No. 68 requires ten years of information to be presented in this table. Data is reported as a measurement of September 30, 2024. 53 CITY OF CHUBBUCK, IDAHO Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 Statutorily required contribution $ 888,498 $ 791,964 $ 765,724 $ 741,954 $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contributions in relation to the statutorily required contribution $ 888,498 $ 791,964 $ 765,724 $ 741,954 $ 709,029 $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contribution (deficiency) excess $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - Employer's covered -employee payroll $ 6,973,077 $ 6,336,434 $ 6,254,019 $ 6,154,443 $ 6,009,444 $ 5,597,869 $ 5,318,395 $ 4,568,504 $ 4,536,572 $ 4,225,217 Contributions as a percentage of covered - employee payroll 12.74% 12.50% 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. Data is reported as a measurement of September 30, 2024. 53 CITY OF CHUBBUCK, IDAHO NOTES TO REQUIRED SUPPLEMENTARY INFORMATION NOTE 1 - STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY A. Basis of Budgetary Accounting The City is required by State law to adopt annual budgets on all governmental funds that cover a period from October 1, through September 30. All adopted budgets are prepared in accordance with the modified accrual basis of accounting and are adopted on a basis consistent with generally accepted accounting principles. B. Budgetary Information GENERALFUND General government The City had actual revenues above budget in the amount of $947,090. The city had actual expenditures below budget in the amount of $323,748. Highway, Streets, and Roads The City had actual revenues above budget in the amount of $103,804. The City had actual expenditures below budget of $339,713. 54 OTHER SUPPLEMENTARY INFORMATION 55 CITY OF CHUBBUCK, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2024 56 Special Revenue Law Street Juvenile Road Total Fire Control Enforcement Park Guarantee Referral Court Projects Parks Nonmajor Impact Fees Impact Fees Impact Fees Fund Fund Fund Fund Fund Funds ASSETS Cash $ 316,685 $ 259,029 $ 1,047,319 $ 109,718 $ 1,292 $ 247,237 $ 177,265 $ 394,088 $ 2,552,633 FUND BALANCES Committed, reported in: Special revenue fund $ 316,685 $ 259,029 $ 1,047,319 $ 109,718 $ 1,292 $ 247,237 $ 177,265 $ 394,088 $ 2,552,633 56 CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 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 REVENUES Interest income $ 7,242 $ 5,822 $ 6,556 $ 5,170 $ 33 $ 5,204 $ 4,437 $ 9,864 $ 44,328 Other revenues 72,503 66,864 201,126 46,384 - 63,251 - - 450,128 79,745 72,686 207,682 51,554 33 68,455 4,437 9,864 494,456 EXPENDITURES Other purchased services 6,000 6,000 22,650 254,316 - - - 288,966 Capital Outlays - - 144,631 - - 144,631 6,000 6,000 167,281 254,316 - 433,597 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 73,745 66,686 40,401 (202,762) 33 68,455 4,437 9,864 60,859 NET CHANGE IN FUND BALANCES 73,745 66,686 40,401 (202,762) 33 68,455 4,437 9,864 60,859 BEGINNING FUND BALANCE 242,940 192,343 1,006,918 312,480 1,259 178,782 172,828 384,224 2,491,774 ENDING FUND BALANCE $ 316,685 $ 259,029 $ 1,047,319 $ 109,718 $ 1,292 $ 247,237 $ 177,265 $ 394,088 $ 2,552,633 57 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2023 LIABILITIES Current Liabilities Accounts payable 5,525 5,525 6,149 5,525 5,525 6,149 Noncurrent Liabilities - - - 5,525 5,525 6,149 NET POSITION Net investment in capital assets 2,386 2,386 3,651 Unrestricted - - - $ 2,386 $ 2,386 $ 3,651 58 Central Garage 2024 2023 Fund Totals Totals ASSETS Current assets Accounts receivable $ 5,525 $ 5,525 $ 6,149 5,525 5,525 6,149 Noncurrent assets Restricted assets Capital assets 261,085 261,085 261,085 Accumulated depreciation (258,699) (258,699) (257,434) 2,386 2,386 3,651 LIABILITIES Current Liabilities Accounts payable 5,525 5,525 6,149 5,525 5,525 6,149 Noncurrent Liabilities - - - 5,525 5,525 6,149 NET POSITION Net investment in capital assets 2,386 2,386 3,651 Unrestricted - - - $ 2,386 $ 2,386 $ 3,651 58 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2023 Central 14,491 14,491 Garage 2024 2023 Fund Totals Totals OPERATING REVENUES 60 15 Interest earnings $ - $ - $2,805 Service revenue 58,952 58,952 102,173 58,952 58,952 104,978 OPERATING EXPENSES Repairs and maintenance 14,491 14,491 6,432 Equipment and supplies 36,296 36,296 86,448 Travel, meetings, and training 60 60 15 Fuels and lubricants 1,400 1,400 525 Utilities 6,704 6,704 8,753 Other purchased services - - 349,584 Depreciation 1,266 1,266 1,287 60,217 60,217 453,044 OPERATING INCOME (LOSS) (1,265) (1,265) (348,066) CHANGES IN NET POSITION (1,265) (1,265) (348,066) BEGINNING NET POSITION 3,651 3,651 351,717 ENDING NET POSITION $ 2,386 $ 2,386 $ 3,651 59 CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2024 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2023 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Central Garage Fund 2024 2023 OPERATING INCOME (LOSS) Central RECONCILIATION OF OPERATING INCOME TO Garage Depreciation Fund 2024 2023 CASH FLOWS FROM OPERATING ACTIVITIES Accounts receivable - 11,455 Cash received from revenues $ 59,576 $ 116,433 Cash paid to suppliers (59,576) (463,212) Cash paid to employees - Net cash provided by operating activities - (346,779) 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 - (346,779) BEGINNING CASH AND CASH EQUIVALENTS - 346,779 ENDING CASH AND CASH EQUIVALENTS $ - $ - CASH AND CASH EQUIVALENTS ARE REPORTED AS: Cash and cash equivalents $ - $346,779 Cash and cash equivalents - Restricted - - $ - $ 346,779 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Central Garage Fund 2024 2023 OPERATING INCOME (LOSS) $ (1,265) $(348,066) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation 1,265 1,287 (Increase) decrease in assets Accounts receivable - 11,455 Increase (decrease) in liabilities Accounts payable - (11,455) Total adjustments 1,265 1,287 NET CASH PROVIDED BY OPERATING ACTIVITIES $ - $ (346,779) CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2024 Resources Interest income Other resources Amounts available for appropriations Charges to appropriations Purchased services Capital outlays Total charges to appropriations NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) - $ 44,328 $ 44,328.00 61 494,456 494,456 288,966 (288,966) 144,631 (144,631) 433,597 (433,597) 2,491,774 2,491,774 $ 2,552,633 $ 2,552,633 STATISTICAL SECTION Gy, 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 64-71 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 72-75 These schedulers contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 76-77 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 78-80 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. 63 City of Chubbuck Net Position By Components Last Ten Fiscal Years (Accrual -Basis Accounting) 64 2022 2023 2015 2016 2017 2018 2019 2020 2021 2024 Governmental activities: Invested in capital assets, net of related debt $ 10,137,975 $ 11,138,839 $ 16,829,117 $ 24,019,218 $ 26,473,293 $ 28,622,260 $ 32,641,830 $ 42,901,054 $ 48,801,763 $ 49,345,262 Restricted - - - - - - - - - - Unrestricted 4,532,072 6,181,447 3,212,484 547,753 (381,048) (1,695,666) (1,091,874) (4,373,190) (4,124,985) (2,542,255) Total governmental activities net position $ 14,670,047 $ 17,320,286 $ 20,041,601 $ 24,566,971 $ 26,092,245 $ 26,926,594 $ 31,549,956 $ 38,527,864 $ 44,676,778 $ 46,803,007 Business -type activities Invested in capital assets, net of related debt $ 6,086,514 $ 6,814,991 $ 9,217,942 $ 11,612,979 $ 11,876,681 $ 16,363,939 $ 41,932,621 $ 43,397,173 $ 44,796,281 $ 43,944,017 Restricted 165,181 166,731 168,131 164,850 166,100 167,200 168,150 168,950 164,600 168,800 Unrestricted 18,460,974 21,272,113 22,001,056 21,704,355 25,076,744 24,496,821 5,378,964 7,682,888 10,029,396 14,725,218 Total business -type activities net position $ 24,712,669 $ 28,253,835 $ 31,387,129 $ 33,482,184 $ 37,119,525 $ 41,027,960 $ 47,479,735 $ 51,249,011 $ 54,990,277 $ 58,838,035 Primary government Net investment in capital assets $ 16,224,489 $ 17,953,830 $ 26,047,059 $ 35,632,197 $ 38,349,974 $ 44,986,199 $ 74,574,451 $ 86,298,227 $ 93,598,044 $ 93,289,279 Restricted 165,181 166,731 168,131 164,850 166,100 167,200 168,150 168,950 164,600 168,800 Unrestricted 22,993,046 27,453,560 25,213,540 22,252,108 24,695,696 22,801,155 4,287,090 3,309,698 5,904,411 12,182,963 Total primary government net position $ 39,382,716 $ 45,574,121 $ 51,428,730 $ 58,049,155 $ 63,211,770 $ 67,954,554 $ 79,029,691 $ 89,776,875 $ 99,667,055 $ 105,641,042 64 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 65 2015 2020 2017 2018 2022 2023 2024 2016 2019 2021 Expenses Governmental activities: General Government $ 542,494 $ 896,297 $ 880,217 $ 862,299 $ 836,698 $ 1,537,463 $ 1,348,508 $ 1,153,148 $ 1,309,632 $ 1,575,664 Law enforcement 2,868,345 3,188,507 3,310,717 3,447,266 3,492,557 3,896,661 3,288,219 3,922,815 4,088,400 4,939,468 Fire Control 1,519,108 1,360,246 1,307,106 1,417,951 1,556,572 1,939,749 1,802,233 2,166,198 2,221,199 2,558,581 Building Inspection 172,946 199,277 199,336 217,171 246,220 28,004 371,732 - - - Street 1,524,819 1,487,702 1,426,385 1,293,629 1,210,550 2,042,497 1,764,251 2,121,982 2,490,247 2,860,038 Parks & Recreation 529,372 591,638 601,054 653,878 623,328 636,713 802,354 879,101 913,966 1,119,534 Health and welfare 41,171 76,884 83,293 90,621 80,049 88,129 91,539 630,746 508,245 635,927 Other special funds - 20,196 150 1,600 17,100 43,181 4,425 234,872 25,500 288,966 CIAWWC Authority 2,930 609,036 609,036 - - - - - - - Total governmental activities expenses 7,201,185 8,429,783 8,417,294 7,984,416 8,063,075 10,212,397 9,473,261 11,108,862 11,557,189 13,978,178 Business -type activities: Water 1,781,501 1,793,535 1,726,443 2,111,162 2,028,807 2,440,008 2,742,104 3,494,695 3,514,768 3,553,690 Sewer 2,200,476 2,319,135 2,363,009 2,649,245 2,705,251 3,174,444 2,868,693 3,707,757 3,872,609 3,970,973 Sanitation 1,060,218 1,221,934 1,637,470 1,732,030 1,626,740 1,916,682 1,969,580 2,460,458 2,449,593 2,602,186 Health Plan Trust - - - - - - 1,346,956 1,646,714 1,595,925 1,754,373 CIAWWC Authority - - - 609,036 609,036 609,063 306,104 3,800 3,100 - Total business -type activities program expenses 5,042,195 5,334,604 5,726,922 7,101,473 6,969,834 8,140,197 9,233,437 11,313,424 11,435,995 11,881,222 Total primary government program expenses 12,243,380 13,764,387 14,144,216 15,085,889 15,032,909 18,352,594 18,706,698 22,422,286 22,993,184 25,859,400 65 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 66 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Program Revenues Governmental activities: Charges for services: General Government 298,505 365,049 414,674 323,186 399,415 342,244 379,116 497,615 598,552 654,341 Law enforcement 35,311 28,918 31,942 29,940 34,221 28,081 27,335 38,982 35,186 41,031 Fire control 197,261 211,041 214,172 237,675 176,925 61,832 5,009 23,963 72 - Street - - - 13,165 17,468 1,292 8,493 - - - Parks & Recreation 9,762 10,589 12,728 149,681 14,758 6,125 16,889 15,833 21,696 86,541 CIAWWC Authority - - 10,980 - - - - - - - Operating grants and contributions 48,000 43,890 71,329 84,653 179,095 652,897 2,345,551 1,034,960 3,347,408 186,524 Capital grants and contributions 916,767 2,667,268 2,354,109 3,644,635 1,019,354 1,253,033 2,253,204 5,322,013 2,211,701 1,227,343 Total governmental activities program revenues 1,505,606 3,326,755 3,109,934 4,482,935 1,841,236 2,345,504 5,035,597 6,933,366 6,214,615 2,195,780 Business -type activities: Charges for services: Water 2,680,920 2,783,945 2,728,684 2,896,320 2,983,977 2,944,986 3,167,282 3,256,843 3,540,200 3,704,591 Sewer 3,583,861 3,657,738 3,803,714 3,979,134 4,229,957 4,163,168 4,403,367 4,749,986 5,348,899 5,484,618 Sanitation 1,731,740 2,169,627 2,192,420 1,978,239 1,930,472 1,952,196 2,044,405 2,223,905 2,283,471 2,385,540 Health Plan Trust - - - - - - 1,484,058 1,714,040 1,992,780 1,919,799 CIAWWC Authority - - - 66,915 21,960 95,330 54,900 - - - Operating grants and contributions 11,328 - 134,662 93,730 - - - - 17,955 15,598 Capital grants and contributions - - - 228,000 1,045,754 2,785,144 3,228,076 3,285,586 1,540,842 1,445,717 Total business -type activities program revenues 8,007,849 8,611,310 8,859,480 9,242,338 10,212,120 11,940,824 14,382,088 15,230,360 14,724,147 14,955,863 Total primary government program revenues 9,513,455 11,938,065 11,969,414 13,725,273 12,053,356 14,286,328 19,417,685 22,163,726 20,938,762 17,151,643 Net(Expense)/Revenue Governmental activities (5,695,579) (5,103,028) (5,307,360) (3,501,480) (6,221,839) (7,866,893) (4,437,664) (4,175,496) (5,342,574) (11,782,398) Business -type activities 2,965,654 3,276,706 3,132,558 2,140,865 3,242,286 3,800,627 5,148,651 3,916,936 3,288,152 3,074,641 Total primary governmental net (expense)/revenue (2,729,925) (1,826,322) (2,174,802) (1,360,615) (2,979,553) (4,066,266) 710,987 (258,560) (2,054,422) (8,707,757) 66 City of Chubbuck Change in Net Position Last Ten Fiscal Years 67 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General Revenues and other Changes in Net Position Governmental activities: General Property taxes and sales tax 5,296,480 5,366,613 5,642,004 5,975,483 6,499,369 7,123,630 4,790,711 7,001,435 7,132,094 8,827,191 Franchise fees 198,493 199,194 201,328 203,950 189,494 186,818 195,483 254,956 250,217 229,853 Intergovernmental 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 3,241,504 3,223,432 3,074,050 3,696,001 Interest income 76,828 90,432 98,064 157,760 182,445 160,617 97,869 131,771 404,942 586,785 Gain on sale of assets 18,038 19,282 - 54,759 78 6,345 - 79,272 18,169 14,035 Other revenue 41,828 766,042 763,697 199,888 186,953 36,711 735,459 462,538 612,016 540,453 Transfers in (out) - - - - (534,080) - - - - - Total governmental activities 6,653,333 7,753,267 8,028,674 7,965,788 7,927,865 8,701,242 9,061,026 11,153,404 11,491,488 13,894,318 Business -type activities: Interest income - - - 4,000 106,283 105,808 24,178 (159,885) 442,312 751,431 Gain on sale of assets 2,530 86,100 736 11,252 - 2,000 800,418 7,626 10,802 - Other revenue - - - - - - - 4,599 - 21,686 Transfers in (out) 100 - - - 534,080 - - - - - Total business -type activities 2,630 86,100 736 15,252 640,363 107,808 824,596 (147,660) 453,114 773,117 Total primary government 6,655,963 7,839,367 8,029,410 7,981,040 8,568,228 8,809,050 9,885,622 11,005,744 11,944,602 14,667,435 Changes in Net Position Governmental Activities 957,754 2,650,239 2,721,314 4,464,308 1,706,026 834,349 4,623,362 6,977,908 6,148,914 2,111,920 Business -type activities 2,968,284 3,362,806 3,133,294 2,156,117 3,882,649 3,908,435 5,973,247 3,769,276 3,741,266 3,847,758 Total primary government $ 3,926,038 $ 6,013,045 $ 5,854,608 $ 6,620,425 $ 5,588,675 $ 4,742,784 $ 10,596,609 $ 10,747,184 $ 9,890,180 $ 5,959,678 67 City of Chubbuck Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) w 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 General fund Unassigned $ 2,952,093 $ 3,410,321 $ 3,939,114 $ 1,239,050 $ 107,771 $ (589,351) $ 540,267 $ 1,143,122 $ 5,629,923 $ 7,458,166 Total General Fund 2,952,093 3,410,321 3,939,114 1,239,050 107,771 (589,351) 540,267 1,143,122 5,629,923 7,458,166 All Other Governmental Funds Committed 554,175 565,911 453,040 516,555 658,913 910,503 1,566,814 1,765,720 2,491,774 2,552,633 Total all other governmental funds $ 554,175 $ 565,911 $ 453,040 $ 516,555 $ 658,913 $ 910,503 $ 1,566,814 $ 1,765,720 $ 2,491,774 $ 2,552,633 w City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 69 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Revenues: Property taxes and sales tax $ 5,349,772 $ 5,375,566 $ 5,627,360 $ 5,930,753 $ 6,405,974 $ 7,131,017 $ 4,895,548 $ 7,040,950 $ 7,159,837 $ 8,813,419 Franchise fees 198,493 199,194 201,328 203,950 189,494 186,818 195,483 254,956 250,217 229,853 Intergovernmental 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 1,187,121 3,241,504 3,223,432 3,074,050 3,696,001 Court Revenue 35,311 28,918 31,942 29,940 34,221 28,081 27,335 28,549 35,076 41,031 Parks revenue 5,402 7,629 10,733 7,729 8,670 2,409 14,275 13,133 18,224 83,382 License, permits and fines 219,868 289,199 320,860 231,180 308,615 220,174 262,953 368,406 461,613 496,883 Grants 466,000 248,290 336,433 43,629 109,076 585,950 2,334,053 516,533 3,339,324 179,289 Fire protection and prevention 197,261 211,041 214,172 237,675 176,925 61,832 5,009 23,963 72 - Law enforcement - - - - - - - 10,433 110 - Leases and rents 78,637 75,850 93,814 92,006 90,800 122,070 116,163 129,209 136,939 116,192 Interest income 76,828 90,432 98,064 157,760 182,445 160,617 97,869 131,771 404,942 586,785 Donations 38,000 23,600 40,149 41,024 70,019 66,947 11,498 518,427 8,084 7,235 Charges for services 4,360 2,960 12,975 155,117 23,556 5,008 11,107 2,700 3,472 3,159 Otherrevenues 41,827 19,063 65,897 86,449 184,022 249,999 720,616 449,760 862,780 540,453 Total Revenues 7,733,425 7,883,446 8,377,308 8,591,160 9,187,423 10,008,043 11,933,413 12,712,222 15,754,740 14,793,682 69 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 70 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Expenditures: General government 483,135 574,204 496,074 580,806 621,568 1,303,835 1,072,664 914,597 1,050,464 1,276,841 Law enforcement 2,843,478 2,960,661 3,062,347 3,287,172 3,354,522 3,507,675 3,550,335 3,646,501 3,970,167 4,654,838 Fire control 1,431,180 1,213,866 1,181,308 1,300,583 1,463,484 1,652,703 1,738,732 1,859,209 1,972,237 2,226,915 Building inspection 174,432 181,199 186,059 212,747 244,749 8,913 395,491 - - - Street 1,365,190 1,336,127 1,270,359 1,136,919 1,054,240 1,722,677 1,437,020 1,618,017 1,958,654 2,274,010 Parks and recreation 498,932 513,091 502,709 552,176 530,705 509,997 722,129 727,783 775,584 957,126 Community services - - - - - - - 593,428 482,760 592,855 Health and welfare 41,171 76,884 83,293 90,621 80,049 88,129 91,539 - - - Other purchased services - - - - - - - 234,872 25,500 288,966 Court fund 1,500 150 1,600 - - - - - - Parks fund - 18,696 - - 17,100 43,181 4,425 - - - Capital outlays 409,060 333,207 953,944 4,160,478 2,806,886 1,771,351 2,882,122 6,032,716 4,818,282 441,282 Lease and subscription capital outlays - - - - - - - 141,108 98,047 100,544 Note payable principle payment - 87,110 89,750 Principal lease and subscription finance 25,648 54,584 69,385 Interest expense - - - 3,651 30,527 45,956 CIAWWC Authority 458,930 230,930 2,930 - - - Total Expenditures 7,705,508 7,440,365 7,739,173 11,323,102 10,173,303 10,608,461 11,894,457 15,797,530 15,323,916 13,018,468 Excess (deficiency) of Revenues over (under) Expenditures 27,917 443,081 638,135 (2,731,942) (985,880) (600,418) 38,956 (3,085,308) 430,824 1,775,214 70 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 71 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Other financing sources (uses): Proceeds from note payable 11,680 2,930 - 1,000,000 Proceeds from lease and subscription - - 141,108 98,046 85,544 Principal payments (236,050) - - - Proceeds from certificate of participation 152,278 1,749,674 3,666,689 3,665,816 Interest expense - (4,000) (3,869) (3,737) (3,605) - - - Proceeds from sale of assets 21,153 23,953 13,837 99,393 828 6,345 79,272 18,169 14,035 Total other financing sources (uses) 32,833 26,883 (222,213) 95,393 (3,041) 154,886 1,746,069 3,887,069 4,782,031 99,579 Net Change in Fund Balances 60,750 469,964 415,922 (2,636,549) (988,921) (445,532) 1,785,025 801,761 5,212,855 1,874,793 Beginning Fund Balances - Restated 3,445,518 3,506,268 3,976,232 4,392,154 1,755,605 766,684 322,056 2,107,081 2,908,842 8,136,006 Ending Fund Balances $ 3,506,268 $ 3,976,232 $ 4,392,154 $ 1,755,605 $ 766,684 $ 321,152 $ 2,107,081 $ 2,908,842 $ 8,121,697 $ 10,010,799 71 Local Tax Revenues City of Chubbuck General Government Tax and Intergovernmental Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) Intergovernmental Revenues Total 72 Local Taxes as a Percentage of Total 84% 81% 81% 81% 82% 86% 61% 69% 70% 71% Highway Total Local State Liquor Highway User's Court Shared Sales Intergovernmental Fiscal Year Property Tax Franchise Tax Streets & Road Sales Tax Taxes Tax Revenue Revenue Road & Bridge Tax Taxes Total Taxes 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 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 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 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 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 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 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 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 2023 6,216,172 250,217 943,665 - 7,410,054 225,430 1,071,510 35,076 - 1,777,110 3,109,126 10,519,180 2024 $ 7,661,995 $ 229,853 $ 1,151,424 $ - $ 9,043,272 $ 214,016 $ 1,692,373 $ 41,031 $ - $ 1,789,612 $ 3,737,032 $ 12,780,304 72 Local Taxes as a Percentage of Total 84% 81% 81% 81% 82% 86% 61% 69% 70% 71% City of Chubbuck Assessed Valuation and Tax Rate Last Ten Fiscal Years Fiscal Year Real and Personal Tax Roll Utilities Tax Roll Actual Sub Roll Exemptions Home Owner's Exemptions Personal Property Total Assessed Actual Value (including exemptions) Levy Rate Tax Rate Per $1,000 Value 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 10,613,436 1,509,525 46,894,793 1,174,656,690 0.006204404 6.20 2023 1,362,355,753 10,775,944 325,873 470,479,400 1,843,936,970 0.005964973 5.96 2024 $ 1,335,934,784 $ 11,410,042 $ 2,309,126 $ 467,161,705 $ $ 1,816,815,657 0.006224284 6.22 *Preliminary Assessment Values Note: Twenty percent of the property in the county is reassessed annually. The County assesses property at 100% of market value. Tax rates are per $1,000 of assessed value. 73 City of Chubbuck Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years (per $1,000 of assessed value) City of Chubbuck Overlapping Rates County Road & Ambulance Service School District 25 Year Base Rates Bannock County Rates Bridge Rates Abatement Rates Portneuf Library Rates Rates Rates Combined Levy Rates 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 2023 5.96 3.01 0.30 0.02 0.36 0.24 1.37 11.27 2024 6.22 3.11 0.27 0.02 0.38 0.25 1.20 11.45 Source: Bannock County Assessors Office (1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck. 74 City of Chubbuck Principal Taxpayers September 30, 2024 2024 2015 Assessed Taxpayer Type of Business Valuation Rank IDAHO CENTRAL CREDIT UNION FINANCIAL INSTITUTE $ 58,303,000 SHJH LLC APARTMENTS 15,577,000 CHUBBUCK ARARTMENTS LLC REAL ESTATE INVESTMENTS 13,086,000 CHUBBUCK WHITAKER LLC REAL ESTATE INVESTMENTS 11,408,000 WAL MART REAL ESTATE RETAIL 10,483,000 GRACE AT CHUBBUCK LLC ASSISTED LIVING 10,126,000 AGREE LIMITED PARTNERSHIP REAL ESTATE INVESTMENTS 8,142,000 RATLIFF, GARY G REAL ESTATE INVESTMENTS 8,130,000 AMERICAN MULTI -CINEMA INC#42360 ENTERTAINMENT 6,951,000 IDAHO POWER COMPANY ENERGY COMPANY 6,469,000 NEIBAUER CHUBBUCK HOLDINGS LLC REAL ESTATE INVESTMENTS 9 4.68% PINE RIDGE MALL JC LLC RETAIL 0.00% ALLSTATE INSURANCE COMPANY INSURANCE/FINANCE - HD DEVELOPMENT OF MARYLAND INC REAL ESTATE INVESTMENTS 12,550,000 CARMIKE CINEMAS INC. ENTERTAINMENT 0.00% TEKLE, HAILE REAL ESTATE INVESTMENTS 11.23% EMERITOL RIDGE WIND LLC REAL ESTATE INVESTMENTS 5 10.29% Total Top Ten $ 148,675,000 Source: Bannock County Assessors Office 75 Percentage of Total Assessed Valuation Assessed Valuation Percentage of Total Rank Assessed Valuation 1 39.22% $ 18,595,225 1 20.91% 2 10.48% 7,172,500 6 8.06% 3 8.80% - 0.00% 4 7.67% - - 0.00% 5 7.05% 9,709,957 4 10.92% 6 6.81% - - 0.00% 7 5.48% 0.00% 8 5.47% 0.00% 9 4.68% 0.00% 10 4.35% - - 0.00% - 0.00% 12,550,000 2 14.11% 0.00% 9,985,574 3 11.23% 0.00% 9,154,248 5 10.29% 0.00% 7,105,536 7 7.99% 0.00% 5,215,232 8 5.86% 0.00% 5,204,568 9 5.85% 0.00% 4,242,947 10 4.77% 100.00% $ 88,935,787 100.00% 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 M, Governmental Activities Business Type Activities (1) Fiscal General Fund Note Water Notes Sewer Note Total Primary Estimated Per Year Payable Sanitation Notes Water Bond DEQ DEQ Government Population Capita 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 2023 912,890 400,781 460,000 8,235,334 9,122,101 19,131,106 16,223 1179.26 2024 $ 823,140 $ 301,643 $ 315,000 $ 8,872,453 $ 8,477,571 $ 18,789,807 16,590 1132.6 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 M, 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 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 2023 3,540,200 2,248,996 1,291,204 145,000 16,232 2024 $ 4,063,157 $ 2,316,359 $ 1,746,798 $ 145,000 $ 11,761 (1) Total revenues ( including interest) (2) Total operating expenses exclusive of asset deprecation, lease amortization, and subscription amortization. (3) Includes principal and interest of revenue bonds only. (4) Pledge of Revenues requires the City to provide net revenues equal to not less than 1.25 times the average annual debt service on the bond. 77 $ 167,863 170,514 165,443 159,175 157,182 158,420 159,507 160,445 161,232 $ 156,761 Coverage 6.84 7.32 7.59 6.68 7.88 6.22 7.62 5.82 8.01 11.14 Pledge of Revenues Coverage Po-dramant !dl 5.47 5.86 6.08 5.35 6.31 4.98 6.10 4.65 6.41 8.91 City of Chubbuck Statistical Information Water Fund September 30, 2024 Schedule of Water Revenue and Production For Residential, Commercial, and Government Accounts Total Revenue $ 3,704,591 Estimated number of active customers 4,929 Total water produced (gallons) 1,000,618 Schedule of Water Rates Monthly Base Fee (by meter size) Size Price Circuit Breaker 1" or less $ 30.57 $ 21.40 1.5 " 88.00 2" 136.20 3" 283.28 4" 464.28 6" 938.10 8" 1,469.18 10" 2,244.47 Volumetric charge: $1.47 per 1,000 gallons metered water. Volumetric charge for circuit breaker: $1.03 per 1,000 gallons metered water. Water Usage Summary Business 223,153 Car Wash 8,444 City Property 5,658 Church 12,945 County using city property 4,879 Duplex 13,899 Four Plex 30,218 Motel 9,000 Multiple Units 32,437 Unaccupied 402 Restaurant 17,006 School 3,324 Single Family 616,754 Three Plex 1,009 Trailer Park 21,490 1,000,618 78 CITY OF CHUBBUCK, IDAHO Ten Largest Water System Customers For The Fiscal Year Ended September 30, 2024 (per 1,000 gallon used) of Total Water Top Ten % of Total Customer Business Type Rank Usage Consumers Usage Circle Inn Trailer Park Mobile Home Park 1 8,611 15.7% 0.9% Pine Ridge Mall JC LLC Shopping Center 2 7,960 14.5% 0.8% Seven Synergy LLC Staffing Services 3 6,824 12.4% 0.7% Camelot Estate Mobile Home Park 4 6,757 12.3% 0.7% Pocatello Motels LLC Motel 5 5,326 9.7% 0.5% Pheasant Ridge HOA Inc. Residential Development 6 4,494 8.2% 0.4% Pine Ridge Idaho LLC Apartment Complex 7 4,476 8.1% 0.4% Capgro Pocatello 2 LLC (Travelodge) Motel 8 3,674 6.7% 0.4% Idaho Central Credit Union Financial Institute 9 3,541 6.4% 0.4% Olive Garden Restaurant 10 3,266 5.9% 0.3% Total Top Ten Consumers 54,929 100.0% Total Usage 79 1,000, 618 5.5 City of Chubbuck Statistical Information Sewer Fund September 30, 2024 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue Schedule of Sewer Rates Monthly Base Fee Regular Residential $ 54.70 NWSI Residential 10.45 5,484,618 Circuit Breaker 38.29 Commercial rate for businesses North of the Interstate is $7.73 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $9.07 per $1,000 gallons of water used. NWSI Commercial rate is winter water average usage divided by $6.85 and multiplied by $10.45. Deaton & Company, Chartered Certified Public Accountants 215 North 91h, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITORS REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of City of Chubbuck, as of and for the year ended September 30, 2024, 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 May 22, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Chubbuck's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Chubbuck's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Chubbuck's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did not identify any deficiencies in internal control over financial reporting, that we would consider to be a significant deficiency in internal control over financial reporting. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Chubbuck's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho May 22, 2025