HomeMy WebLinkAbout2013CITY OF CHUBBUCK, IDAHO
AUDITED FINANCIAL STATEMENTS
FOR THE FISCAL YEARS ENDED SEPTEMBER 30, 2013 AND 2012
Certified Public Accountants
Management Discussion and Analysis
CITY OF CHUBBUCK, IDAHO
Statements of Net Position
19
ANNUAL FINANCIAL REPORT
20
Balance Sheets - Governmental Funds
SEPTEMBER 30, 2013 AND 2012
Statement of Fiduciary Net Position - Recreational Program Fund
28
TABLE OF CONTENTS
39
Notes to Financial Statements
30-43
Page
Title Page
Budgetary Comparison Schedule - General Fund
1
Table of Contents
46
2
Introductory Section
Combining Balance Sheet - Nonmajor Governmental Funds
48
Letter of Transmittal
3-5
List of Principal Officials
Budgetary Comparison Schedule - Nonmajor Governmental Funds
6
Organizational Chart
51
7
Financial Section
Matters Based on an Audit of Financial Statements Performed in Accordance with
Independent Auditor's Report
52-53
8-9
Management Discussion and Analysis
10-18
Statements of Net Position
19
Statements of Activities
20
Balance Sheets - Governmental Funds
21
Statements of revenues, Expenditures, and Changes in Fund Balances - Govemmental
Funds
22-23
Statements of Net Position - Proprietary Funds
24
Statements of Revenues, Expenses, and Changes In Net Position - Proprietary Funds
25
Statements of Cash Flows - Proprietary Funds
26-27
Statement of Fiduciary Net Position - Recreational Program Fund
28
Statement of Changes in Fiduciary Net Position - Recreational Program Fund
39
Notes to Financial Statements
30-43
Required Supplementary Information
44
Budgetary Comparison Schedule - General Fund
45
Notes to Required Supplementary Information
46
Other Supplementary Information
47
Combining Balance Sheet - Nonmajor Governmental Funds
48
Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor
Governmental Funds
49
Budgetary Comparison Schedule - Nonmajor Governmental Funds
50
Compliance and Single Audit Section
51
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
52-53
Independent Auditor's Report on Compliance with Requirements that Could have a
Direct and Material Effect on each Major Program and on Internal control over
compliance in Accordance with OMB Circular A-1 33
54-55
Schedule of Expenditures of Federal Awards
56
Schedule of Findings and Questioned Costs
57
Summary Schedule of Prior Audit Findings
58
DEATON & COMPANY, CHARTERED
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1 1 1
www.citvofchubbuc:k.us
5160 Yellowstone, PO Box 5604
Chubbuck, ID 83202
(208) 237-2400 phone
(208) 238-2371 fax
MAYOR
Kevin England
March 30, 2014
COUNCIL MEMBERS
Kermit Morrison
Ryan Lewis
Josh Ellis
Brent Marshall
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, 2013.
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 has 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 unqualified opinion on
the City of Chubbuck's financial statements for the year ended September 30, 2013. The independent auditor's
report is located at the front of the financial section of this report.
Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report and
provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this
letter of transmittal and should be read in conjunction with it.
Profile of the City of Chubbuck
The City of Chubbuck (population 14,156) was incorporated in 1450. Chubbuck is located in the southeastern
portion of the State of Idaho.
Chubbuck has a land area of 4.19 square miles and is bordered by the City of Pocatello, with its own
population of 54,810. The City is located in Bannock County with a 2013 estimate census population of
83,277. The City is empowered to levy property taxes on both real and personal property within the city
limits, It also is empowered by state statue to extend its corporate limits by annexation, which it had
done from time to time.
The City of Chubbuck operates under the Council -Mayor form of government. Policy-making and
legislative authority are vested in a governing council (City Council) consisting of the Mayor and four
other members, all elected on a non-partisan basis. The Council is responsible for passing ordinances,
adopting budget, appointing committees, approval of internal control framework and hiring city
management. The Mayor acts as the Chief Executive Officer and oversees the day-to-day operations of
the City. The Mayor and Council members are elected at large for 4 -year terms, with two of the Council
members standing for election every two years.
The City of Chubbuck provides a full range of services. These services include Public Safety (police, fire,
animal control, and building inspection); Environmental Health (sanitation, water, waste water
treatment and storm water management); Transportation (street & highway maintenance and traffic
engineering); Recreational (parks and recreation); Neighborhood Quality (engineering, planning and
development, community services) and Administration (mayor/council, finance, elections, human
resources, legal risk management, and information technology). In addition to general government
activities, the Mayor and City Council exercise, or have the ability to exercise, oversight of the Chubbuck
Development Authority, a legally separate corporation. Therefore, its activities are included as a
separate component unit in the reporting entity.
The annual budget serves as the foundation for the City of Chubbuck's financial planning and control.
After reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests
during May. The Chief Financial Officer and Mayor are responsible for preparing a draft budget for the
Council. The budget is prepared by fund, function and activity, and includes information on the past
year, current year estimates and requested appropriation for the next fiscal year. Prior to August 1, the
City's Chief Financial Officer and the Mayor submit the proposed budget to the City Council for review.
The City Council holds public hearings and may add to, subtract from or change the proposed budget,
but may not change the form of the budget. Prior to August 30, the budget is legally enacted through
passage of the annual appropriation ordinance (not in excess of the proposed budget) by the City
Council. Expenditures may not exceed budgeted appropriations at the fund level. City management can
legally amend or transfer appropriations within individual funds but not between funds which requires
the approval of the City Council in a budget amendment, which follows a public notice, public hearing
and amended ordinances adoption process similar to the adoption of the original budget. Budgets are
integrated into the accounting system to facilitate management control during the year.
The Council reviews service levels for all departments prior to entertaining budget requests for the next
fiscal year. Revenue projections receive equal attention and the Council makes budget decisions
4
Chubbuck has a land area of 4.19 square miles and is bordered by the City of Pocatello, with its own population of
54,810. The City is located in Bannock County with a 2013 estimate census population of 83,277. The City is
empowered to levy property taxes on both real and personal property within the city limits, It also is empowered by
state statue to extend its corporate limits by annexation, which it had done from time to time.
The City of Chubbuck operates under the Council -Mayor form of government. Policy-making and legislative
authority are vested in a governing council (City Council) consisting of the Mayor and four other members, all
elected on a non-partisan basis. The Council is responsible for passing ordinances, adopting budget, appointing
committees, approval of internal control framework and hiring city management. The Mayor acts as the Chief
Executive Officer and oversees the day-to-day operations of the City. The Mayor and Council members are elected
at large for 4 -year terms, with two of the Council members standing for election every two years.
The City of Chubbuck provides a full range of services. These services include Public Safety (police, fire, animal
control, and building inspection); Environmental Health (sanitation, water, waste water treatment and storm water
management); Transportation (street & highway maintenance and traffic engineering); Recreational (parks and
recreation); Neighborhood Quality (engineering, planning and development, community services) and
Administration (mayor/council, finance, elections, human resources, legal risk management, and information
technology). In addition to general government activities, the Mayor and City Council exercise, or have the ability to
exercise, oversight of the Chubbuck Development Authority, a legally separate corporation. Therefore, its activities
are included as a separate component unit in the reporting entity.
The annual budget serves as the foundation for the City of Chubbuck's financial planning and control. After
reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests during May. The
Chief Financial Officer and Mayor are responsible for preparing a draft budget for the Council. The budget is
prepared by fund, function and activity, and includes information on the past year, current year estimates and
requested appropriation for the next fiscal year. Prior to August 1, the City's Chief Financial Officer and the Mayor
submit the proposed budget to the City Council for review. The City Council holds public hearings and may add to,
subtract from or change the proposed budget, but may not change the form of the budget. Prior to August 30, the
budget is legally enacted through passage of the annual appropriation ordinance (not in excess of the proposed
budget) by the City Council. Expenditures may not exceed budgeted appropriations at the fund level. City
management can legally amend or transfer appropriations within individual funds but not between funds which
requires the approval of the City Council in a budget amendment, which follows a public notice, public hearing and
amended ordinances adoption process similar to the adoption of the original budget. Budgets are integrated into the
accounting system to facilitate management control during the year.
The Council reviews service levels for all departments prior to entertaining budget requests for the next fiscal year.
Revenue projections receive equal attention and the Council makes budget decisions sufficient to balance the budget
against projected revenues. Cash balances and budget to actual trends are monitored monthly.
The preparation of the comprehensive annual financial report was made possible by the dedicated service of the
entire staff of the City and, in particular, the Clerk's Office. Each member of these departments has our sincere
appreciation for the contributions made in the preparation of this project. Credit also must be given to the Mayor and
the City Council for their support for maintaining high standards of professionalism in the management of the City of
Chubbuck's finances.
Respectfully submitted March 28, 2014
Rich Morg
City Clerk
� �'fl►1l!'!'r
Daniel Christensen
Finance Clerk
CITY OF CHUBBUCK, IDAHO
List of Principal Officials
SEPTEMBER 30, 2013
Title Name
Elected Officials
Mayor
Kevin England
Council President
Ryan Lewis
Council Member
Kermit Morrison
Council Member
Josh Ellis
Council Member
Brent Marshall
City Officials
City Attorney
Tom Holmes
Public Works Director
Steven Smart
Public Works Superintendent
Bryan Hall
City Clerk/Treasurer
Rich Morgan
Human Resource Officer
Eric Jablonski
Financial Officer
Dan Christensen
City Planner
Paul Andrus
Police Chief
Randy Severe
Computer Information Systems
Andy Despain
Parks & Recreation
Bill Guinn
Fire Chief
Eric King
2
CITY OF CHUBBUCK
ORGANIZATION CHART
Deaton & Company, Chartered _ -
Certified Public Accountants
215 North 9th, Suite AFBI
Pocatello, Idaho 83201-5278
(208) 232-5825
Members of Idaho Society of Certified PublicAccountanr
Memhers of American Institute of Certified Public AccuuntunLv
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of the City Council
City of Chubbuck, Idaho
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the
City of Chubbuck as of and for the year ended September 30, 2013, and the related notes to the financial statements,
which collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from
material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial
position of the governmental activities, the business -type activities, the aggregate discretely presented component units,
each major fund, the aggregate remaining fund information, and the respective budgetary comparison for the General
Fund, the Street Fund and the other major special revenue funds of the City of Chubbuck, as of September 30, 2013, and
the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis and other required supplemental information on pages 10-18 and 45-46 be presented to supplement the basic
financial statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the
basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally accepted in the
United States of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an
opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City of Chubbuck's basic financial statements. The introductory section, combining and individual nonmajor fund financial
statements and statistical section, are presented for purposes of additional analysis and are not a required part of the
basic financial statements. The schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by U.S. Office of Management and Budget Circular A-133, Audits of States, Local Governments, and
Non -Profit Organizations, and is also not a required part of the basic financial statements.
The combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards 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 2012 audited financial statements
and, in our report dated March 29, 2013, we expressed unqualified opinions on the respective financial statements of the
governmental activities, the business -type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information. This information is consistent, in all material respects, with the
audited financial statements from which it has been derived.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the
basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2014, on our
consideration of the City of Chubbuck's intemal control over financial reporting and on our tests of its compliance with
certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is
to describe the scope of our testing of internal control over financial reporting and compliance and the results of that
testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Government Auditing Standards in considering City of Chubbuck's
internal control over financial reporting and compliance.
Chubbuck, Idaho
March 28, 2014
DEATON & COMPANY, CHARTERED
City of Chubbuck
Management's Discussion and Analysis
For the Year Ended September 30, 2013
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,
2013. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal.
Financial Highlights
• The assets of the City of Chubbuck exceed its liabilities at the close of the most
recent fiscal year by $33,378,845 (net position).
• At the end of the current fiscal year, unassigned fund balances for the general fund
was $2,708,737 or 40 percent of total general fund expenditures.
• The governments net position increased by $6,161,882. Approximately half of this
increase, $2,515,852, is attributed to capital contributions from the Chubbuck
Development Authority.
• In the City's business -type activities, operating revenues increased by $177,093.
And operating expenses increased by $342,733. These increases are due to a
combination of changes in services offered, increases in services used and increases
in operating costs.
• During the current fiscal year, City of Chubbuck's debt had an increase of
$17,206,506. (Including compensated absences). This was primarily due to the
CIAWWC Authority's advance payable of $18,179,220 blended into governmental
activities.
• The Chubbuck Impact Area Waste Water Collection Authority has been blended with
the governmental activities in the primary government do to the implementation of
GASB Statement No. 61.
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)
governmental -wide financial statements, 2) fund financial statements and 3) notes to the financial
statements. This report also contains other supplementary information in addition to the basic financial -
statements themselves.
Government -wide financial statements. The government -wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private -sector
business.
The Statement of Net Position presents information on all of the City's assets and liabilities, with the
difference between the two 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
10
in this statement for some items that will only result in cash flows in the future fiscal periods ( e.g.
uncollected taxes and earned but unused compensated absences).
Both of the government -wide financial statements distinguish functions of the City of Chubbuck that are
principally supported by taxes and intergovernmental revenues (governmental activities) from functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business -type activities). The governmental activities of the City of Chubbuck include general
government and administration, public safety, parks, and highway streets and roads. The business -type
activities of the City include water and sewer, and sanitation operations.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated from specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. All of the funds of the City of Chubbuck can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on current sources and uses of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in
evaluation a government's near-term financing equipments.
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, which is the City's
only major governmental fund. Data from the other six 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 nonmajor 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 20-22 of this report.
Proprietary Funds. The City of Chubbuck maintains two different types of proprietary
funds. Enterprise funds are used to report the same functions presented as business -type
activities in the government -wide financial statements. The City of Chubbuck uses
enterprise funds to account for its Water department, Waste Water department, and
Sanitation department Internal service funds are an accounting device used to accumulate
11
and allocate costs internally among the City of Chubbuck's various functions. The City of
Chubbuck uses an internal service fund to account for its central garage operations. Because
this service predominantly benefits business type functions rather than the governmental
type functions, it has been included within the business type activities in the financial
statements.
Proprietary funds provide the same type of information as the government -wide financial
statements, only in more detail. The proprietary fund financial statements include the
operational and financial date from both the types of funds. The Water, Sewer, 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 23-26 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide
financial statements because the resources of those funds are not available to support the City
of Chubbuck's own programs. The accounting used for fiduciary funds is similar to proprietary
funds.
The City of Chubbuck adopts an annual appropriated budget for its fiduciary fund. However, the
City does not provide budgetary comparison schedules for fiduciary funds.
The fiduciary fund financial statements can be found on pages 27-28 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government -wide and fund financial
statements. The notes to the financial statements may be found on pages 29-42 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City's budgeted
expense and revenues versus actual expenses and revenues.
The combining statement referred to earlier in connection with non -major governmental funds
is presented following the required supplementary information on budget comparison.
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 $33,378,845 as of September 30, 2013.
The largest portion of the City of Chubbuck's net assets (35%) reflects its investments in capital assets
(e.g., land, building, equipment, improvements, contraction in progress and infrastructure), less any
debt used to acquire those assets that is still outstanding.
12
The City uses these capital assets to provide service to citizens; consequently these assets are not
available for future spending. Although the City's investment in capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Below is a summary of the City of Chubbuck's Net Position statement.
City of Chubbuck's Net Position
An additional portion of the City of Chubbuck's net assets $165,781 represent resources that are subject
to external restriction on how they may be used. The remaining balance of unrestricted net assets
($17,599,198) may be used to meet the governments' on going obligation to citizens and creditors.
As of September 30, 2013, the City is able to report positive balances in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business -
type activities.
At the end of the current fiscal year, 98 percent of the liabilities are made up of noncurrent liabilities.
This primarily represents notes payable and bonds discussed in note 9 pages 38-41 of the notes to
financial statements.
Governmental activities. Governmental activities' key elements are broken down in the following
charts. Government activities increased net position by $3,137,275 and business -type activates
increased net position by $3,024,608,
The City of Chubbuck's direct charges to users of governmental services made up $399,850. These
charges are for park rentals, building permits and other fees related to public safety and administration.
Public safety, the largest portion in fiscal year 2013, includes the fire department and police department
and accounts for $4,096,230 in expenditures. The second largest portion of expenditures is the street
department which accounts for $1,286,377. General government accounts for $352,910 in expenditures.
13
Governments l Activities
&W nass Activities
Tots f
2013
2012
2013
2012
2013
2012
AUM
tunentand ottierassets S
3,592,593
S 3373,762 5
31,553,509 S
30259197
5 35156,102 i $
33642,899.
capitalassets
2.8,950,913
7,706,751 !
8,914,109
$,246,564
37,865,022:
15,952,915
Total assets
32,543,5D6
11,079,953 -.
40,477,61a
38,515,861
73,021,124
49,595,814
LMSMITIB
Lona -term) iabilitesovtstandina
38,551,345
261,740
19,719,498
21,055,376
38,284843
21,317,116
Other liabilites
246,445
215,256
1114991(
903,401
1,361,436
1,118,857
Totsllisbilites
18,797,790
476,995
20,844,489
31,958,777
39,642,279
22,435,773
NU POSMINI
Invested Incaptial assets, netts
related debt
10,153,123
: 7,706,251
5,460,149
4,402,647
15,613,866
12,108,898
Restricted
-
-
155,7$1
169A81
165,781
169,061
Unrastrictad
31592,593
2,896,706
14,006,605
11,985,355
17,549,198 ,
14,882,062
Toto lnot pasktion 5
13,745,716
S 14502,957 ' S
19,633,129 Is
16,557,084
5 33,379,845 S
27,166,041
An additional portion of the City of Chubbuck's net assets $165,781 represent resources that are subject
to external restriction on how they may be used. The remaining balance of unrestricted net assets
($17,599,198) may be used to meet the governments' on going obligation to citizens and creditors.
As of September 30, 2013, the City is able to report positive balances in all three categories of net
position, both for the government as a whole, as well as for its separate governmental and business -
type activities.
At the end of the current fiscal year, 98 percent of the liabilities are made up of noncurrent liabilities.
This primarily represents notes payable and bonds discussed in note 9 pages 38-41 of the notes to
financial statements.
Governmental activities. Governmental activities' key elements are broken down in the following
charts. Government activities increased net position by $3,137,275 and business -type activates
increased net position by $3,024,608,
The City of Chubbuck's direct charges to users of governmental services made up $399,850. These
charges are for park rentals, building permits and other fees related to public safety and administration.
Public safety, the largest portion in fiscal year 2013, includes the fire department and police department
and accounts for $4,096,230 in expenditures. The second largest portion of expenditures is the street
department which accounts for $1,286,377. General government accounts for $352,910 in expenditures.
13
Below is summary of the City of Chubbuck's Changes in Net Position.
City of Chubbuck's Changes in Net Position
Oorernm.rrtta I A[tiTl till BU3Iltay3 ACt Wkias Totai
2013 - 2012 2013 2012. 2.013 2012
REVMUES
Projram ravanuas:
Ghia rias for aarvlaRl
S 399,650 =
$ 350,942
5 7,414,671
5 7,240,114 s
_7,614,721 $ _
_ 7,591,211
Operstlossranr3■ndconrrlbuvp s
128,823
_43,612
128,618
43,612
6enaral rsvanuc
Propert"X*s and Sala1 rax
4 982 426
4,594,553
-
-
4,982 426
4,594,553
Otfa4r uzal _
1233,673
11161,901 -
-
-
1,238,673
1,161,401
�Otlf4r
184221
72,506
3,044
42921
]87265
115,427
capital Contrl"tions
.,.. 2294772
2663.248:
261,081
1,125220
2,515853 _..,_
3,606,468
CIAWWC AutbvrltY
Total Reranws
_ 5,41. 6,769
8,906 812
7,676,996 ;
8,408,260
17,095,756
17.315.072
Eamtsm
1 Gan and 6pvammant -...
352,910
235,127
-
352,910
_235,127
Pubik"fory
4,086,230
3,8&1,651
_-..1,245,664-
-
_-
_
4,096,230
3,864,651
'6uildin�6lnspacelon and itraat....
- 1.786.377.
-°.-..-
1,286,377 _.
...1,245,864
iPHksaral rats atlpn
494,692
534,574.
-.,.
-. -
494,692
534,574
i Haa Itn, vra Mara, a nd oxhar
44.702
",575,
44,702
4;575 -
�Water
_ -
..1.466,297
.1.398,887_._. _....
1.46,297..__
�se-V _
_
-
2,072,020
.1,116,071 _.
1.847,034.
2,072,020
1,847.034
�sootagon _ _ -
_ -
-..
1.132,300 -..
1.146,071.__....
],132.300
j C1AW WC Auth *Ott
4574:
-
ITOM. la�lnsas
6,279,485
5,448„793
4,654,388
4,376,221
10.933,673-x,327013
rf4c11Ek% lM MEF ASSM
3,137,27F,
2 956,021•
3,024,606
4 030 039
6,1b],883 '
6,966 060
{
MfrPOSfrgNtte6irntint,_ ,,.., _..
SO 606,M2
T 533 353 -.
16,575,046
,12,642,655
_. ..(15,611)'
27,163,538.
.33,425
20,076,006.
Prior Period Adjuatanent
-.
111,565
33.4251,
95,974
MET POSMON —M.5 ' 5 13,7454717 S 10,602,987 S 19,633,129 S 26,557,08; S 33,378,646 - S 27,160,040
Revenue by Source - Government Activities
184,221
14
■C hargesfor servkes
0operating grants and contributions
■ Property taxes and sales tax
■ Othertaxe s
■Other
■ Capital Contributions
■ GIA W WC Authority
Expenses and Program Revenues — Governmental Activities
4,500,000
4,000,000
3,500,000
3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
500,000
■ Expenses
■ Revenue
The majority of the City of Chubbuck's governmental activities' revenue is received from
property and sales tax (52 percent). This amount would be 73 percent of the revenue received
without this fiscal year's capital contributions from Chubbuck Development Authority.
When all taxes are added together, they make up 64 percent of the budget or 92 percent
without the current fiscal years' capital contributions from Chubbuck Development Authority.
When revenues are compared to expenses, it shows that none of the City of Chubbuck's
programs are self supporting. They all require tax support to continue at their current level of
service.
For the most part, increases in expenses closely paralleled inflation and growth in the demand for
services. No significant transaction occurred outside of the Major funds for fiscal year 2013. No
significant losses or revenues were received during the year.
The major fund in the City is the general fund. Significant transactions within the general fund this year
mainly consisted of payments of personnel, law enforcement expenses, fire department expenses, and
street maintenance.
15
Business -type activities. Businesses -type activities' key elements are broken down in the
following charts.
Revenue by Source - Business Type
Activities
■Charges for services
Mother
■ Capital Contributions
Expenses and Program Revenues - Business Type Activities
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
Water Sewer Sanitation
■ Revenue
■ Expense
• One of the major sources of the City of Chubbuck's business -type activities' revenue is
received from charges for services (97 percent). Currently, the City of Chubbuck's business
type activities do not use property taxes for any type of funding.
• The second major source is capital contributions (3 percent). These contributions were
received by water only.
• When revenues are compared to expenses, it shows that all of the City of Chubbuck's
programs are self-supporting.
16
Financial Analysis of the Government's Funds
As noted earlier, the City of Chubbuck uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds. The focus of the City of Chubbuck's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City of Chubbuck's financing requirements. In particular, unreserved fund balance
may serve as a useful measure of the government's net recourses 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 $3,199,631. Of which $2,708,737 of this total is unassigned fund balance (79
percent).
The general fund is the chief operating fund of the City of Chubbuck. In the general fund, the City
budgeted for no change in the fund balance. Operating revenues were less than operating
expenditures. However, due to other financing sources and uses the net change in the general fund
increased $359,907 for fiscal year 2013. As a measure of liquidity, it may be useful to compare both
unassigned fund balance and total fund expenditures. Unassigned fund balance represents 39 percent of
total general fund expenditures.
Proprietary funds. The City of Chubbuck's proprietary fund statements provide the same type of
information found in the government -wide financial statements, but in more detail.
Unrestricted net positions of the respective proprietary funds are Water: $5,254,169, Sewer:
$6,920,562, and Sanitation: $447,193. The water funds had an increase in net assets of $1,348,339; the
sewer fund had an increase in net assets of $1,194,174; and the sanitation fund and an increase in net
assets of $544,684.
General Fund Budgetary Highlights
The City made no revisions to the original appropriations approved by the City Council. As stated earlier
revenues were less than budgeted and expenses were less than budgeted. This accounts for a $359,907
increase in the general fund balance. The variance in expenditures was due to an increase in
expenditures of capital outlays and other operating expenditures in the Fire, Heath and Welfare, and
Street departments over budget.
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, 2013 amounts to $19,456,892 (net of accumulated depreciation).
This investment in capital assets includes land, buildings, machinery, equipment, other improvements,
and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal
year was $21,912,107. The increase in assets includes contributions from the Chubbuck Development
Authority of $2,515,853 and the CIAWWC Authority's capital assets blended into governmental activities
with $18,408,131.
17
City of C, b0bulck"s Capital Ass.ets
(net of accumulated depreciation)
Additional information on the City of Chubbuck's capital assets can be found in note 8 on page 38 of
this report.
Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total debt outstanding
of $38,280,843. Of this amount, $16,873,075 is comprised of notes to the Department of Environmental
Quality for waste water infrastructure. Long-term debt also includes bonds with a remaining balance of
$1,705,619 used for purchasing water shares.
City of Chubbuck Long Terni Debt
Debt Type
aovemm enta l Activities
Business Acti vibes
Water Revenue Bonds
Tota l
$ 1,830,000
Sewer Revenue Bonds
2013 -...
2012
2013 _..,
2612
2013
2012
Land S
234,319
$ 90,866.
5 709,854 5
709,884,._ . 5
944,173 5
-
800,720
Buildings Imp,
3,248,868
2,854,621
9,335,681
9,056,424
12,584,549
11,911,045
MachireryS Equip.
3,930,204
3,751,745
3,304,571
3,006,025 ;
7,234,775
6,757,771
Infrastructure
3,258,383
3,075,550
-
-
3,258,383 -.
3,075,550
Work inProgress
22,801,074
2,327,235:
19,660;
22,801,074
2,340,895
Water Rights
1,&22,508
1,192,442!
1,822.508.
1,192.443
Bond Fees
18,013
18,013
Total 5
33,472,848
5 13,044017
S 15,172,614 S
14,002,419 � S
4$645,462 ; S
25,896.436
Additional information on the City of Chubbuck's capital assets can be found in note 8 on page 38 of
this report.
Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total debt outstanding
of $38,280,843. Of this amount, $16,873,075 is comprised of notes to the Department of Environmental
Quality for waste water infrastructure. Long-term debt also includes bonds with a remaining balance of
$1,705,619 used for purchasing water shares.
City of Chubbuck Long Terni Debt
Debt Type
_ 2013 Balance
2012 Balance
Water Revenue Bonds
$ 1,720,000
$ 1,830,000
Sewer Revenue Bonds
-
-
Water- DEQ Loan
251,448
267,790
Sewer - DEQ Loans
16,873,075
17,671,318
Notes Payable Sanitation
1,386,299
1,641,413
Compensated Absences
415,424 „
410,865
$ 20,646,246:
$ 21,821,386
The State of Idaho mandates a general obligation debt limit of 2% of the assessed market value of
taxable property within the City boundaries. The City of Chubbuck currently carries a note in the amount
of $154,929 as general obligation debt. The limit totaled $8,925,249 on September 30, 2013. The City of
Chubbuck's general obligation note above is subject to this limit. Therefore $8,770,320 is available for
future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt
can be found in note 9 on pages 38-41 of this report.
Request for information
The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a
general overview of the City's finances and to show the City's accountability for the money it receives. If
you have question about this report or need any additional financial information, contact the Mayor and
City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400.
18
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
SEPTEMBER 30, 2013
ASSETS
Current assets
Cash and cash equivalent
Property taxes receivable
Intergovernmental receivables
Other accounts receivable
Noncurrent assets
Restricted assets
Bond reserves
Utility deposits
Advance to joint venture
Capital assets
Accumulated depreciation
LIABILITIES
Current liabilities
Accounts payable
Accrued payroll
Accrued bond interest
Current portion compensated absences
Current portion of bonds payable
Current portion of long-term debt
Current portion capital lease obligation
Payable from restricted assets -
Water deposits
Noncurrent liabilities
Bonds payable
Note payable
Accrued compensated absences
Advance payable
NET POSITION
Invested in capital assets,
net of related debt
Restricted for bond service
Unrestricted
Governmental Business -type Development
Activities Activities Total Authority
$ 3,007,750 $ 12,290,425 $ 15,298,175 $ 1,649,558
335,744
-
335,744 91,351
246,240
-
246,240 -
2,859
717,778
720,637 -
3,592,593
13, 008, 203
16, 600, 796 1,740,909
-
165,781
165,781 -
-
210,305
210,305 -
-
18,179,220
18,179,220 -
33,472,848
15,172,614
48,645,462 -
4,521,935
(6,258,505)
(10,780,440) -
28,950,913
27,469,415
56,420,328 -
32,543,506
40,477,618
73,021,124 1,740,909
78,125
167,643
245,768
6,628
79,347
25,081
104,428
-
-
5,764
5,764
-
61,234
21,851
83,085
-
-
110,000
110,000
-
-
574,347
574,347
-
27,739
-
27,739
-
-
210,305
210,305
-
246,445
1,114,991
1,361,436
6,628
-
1,705,619
1,705,619
-
127,190
17,936,475
18,063,665
-
244,935
87,404
332,339
-
18,179,220
-
18,179,220
-
18,551,345
19,729,498
38,280,843
--
18,797,790
20,844,489
39,642,279
6,628
10,153,123
5,460,743
15,613,866
-
-
165,781
165,781
-
3,592,593
14,006,605
17, 599,198
1,734,281
$13,745,716 $ 19,633,129 $ 33,378,845 $ 1,734,281
19
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
Functions/Programs
Primary Government:
Governmental activities:
General government
Law enforcement
Fire control
Building inspection
Street
Parks and recreation
Health and welfare
Other special revenue funds
CIAWWC Authority
Business -type activities
Water
Sewer
Sanitation
Total primary government
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Program Revenues Total
Operating Net
Charges for Grants and (Expense) Development
Expenses Services Contributions Revenue Authority
$ 352,910
$ 203,578 3
-
$ (149,332) . $ -
2,782,655
-
74,500
(2,708,155) -
1,313,575
191,317
-
(1,122,258) -
163,631
-
-
(163,631) -
1,122,746
-
-
(1,122,746) -
494,692
4,955
-
(489,737) -
39,552
-
-
(39,552) -
5,150
-
54,318
49,168 -
4,574
-
228,000
(4,574)
6,279,485
399,850
128,818
(5,750,817) -
1,466,297
2,582,932
-
1,116,635 -
2,072,020
3,182,335
-
1,110,315 -
1,116,071
1,649,604
-
533,533 -
4,654,388
7,414,871
-
2,760,483 -
$ 10,933,873
$ 7,814,721 $
128,818
$ (2,990,334) $ -
Component Unit:
Chubbuck Development Authority $ 2,734,766
2,734,766
Net(expense)/revenue
General revenues
General property taxes and sales tax
Franchise fees
Intergovernmental
Leases and rents
Interest income
Gain on sale of assets
Capital contributions
Otherrevenue
CIAWWC Authority
NET CHANGE IN NET POSITION
BEGINNING NET POSITION - restated
PRIOR PERIOD ADJUSTMENT
ENDING NET POSITION
$ (2,734,766)_
$ (2,734,766)
General Business -type Development
Activities Activities Total Authority
$ (5,750,817) $ 2,760,483 $ (2,990,334) $ (2,734,766)
4,982,426
-
4,982,426
2,206,890
192,151
-
192,151
-
955,679
-
955,679
-
90,843
-
90,843
-
60,367
644
61,011
19,227
34,788
2,400
37,188
-
2,254,771
261,081
2,515,852
-
89,066
-
89,066
-
228,000
-
228,000
-
8,888,091
264,125
9,152,216
2,226,117
3,137,274
3,024,608
6,161,882
(508,649)
10,608,442
16,557,083
27,165,525
2,242,930
-
51,438
51,438
-
$ 13,745,716 $ 19,633,129 $ 33,378,845 $ 1,734,281
20
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2012
CIAWWC Other
General Authority Governmental
Fund Fund Funds Total 2012
ASSETS
Cash
$ 2,516,856 $
- $ 490,894 $ 3,007,750
$ 2,808,335
Accounts receivable
2,859
- - 2,859
565
Property and sales taxes receivable
335,744
- - 335,744
325,267
Intergovernmental receivables
246,240
- - 246,240
239,536
$ 3,101,699 $
- $ 490,894 $ 3,592,593
$ 3,373,703
LIABILITIES
Accounts payable
$ 78,125 $ - $
- $ 78,125
$ 79,683
Accrued payroll
79,347 -
- 79,347
70,138
Accrued compensated absences
61,234 -
- 61,234
65,435
218,706 -
- 218,706
215,256
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
174,256 -
- 174,256
176,779
FUND BALANCES
Unreserved, reported in:
Committed - - 490,894 490,894 632,838
Unassigned 2,708,737 - - 2,708,737 2,348,830
2,708,737 - 490,894 3,199,631 2,981,668
$ 3,101,699 $ - $ 490,894 $ 3,373,703
Amounts reported for governmental activities in the Statement of Net Assets
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 $4,521,935. 28,950,913 26,005,385
Deferred tax revenue represents amounts that were not available to fund current
expenditures and therefore are not reported in the funds 174,256 176,779
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds:
Note Payable (154,929) -
Accrued compensated absences (244,935) (261,740)
Advance payable1( 8,179,220 X18,282,069)
Net position of governmental funds
21
See accompanying notes to financial statements
$ 13,745,716 10,620,023
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012
EXPENDITURES
General government
326,399
CIAWWC
Other
326,399
214,382
Law enforcement
General
Authority
Governmental
2,669,035
2,494,222
Fire control
Fund
Fund
Funds
Total
2012
REVENUES
163,631
-
-
163,631
158,409
General property taxes and sales tax
$ 4,984,949
$ -
$ -
$ 4,984,949
$ 4,567,959
Franchise fees
192,151
-
-
192,151
201,128
Intergovernmental
955,679
-
-
955,679
908,227
Parks revenue
1,720
-
-
1,720
2,399
Licenses, permits and fines
203,578
-
-
203,578
133,808
Grants
74,500
228,000
-
302,500
27,892
Fire protection and prevention
191,317
-
-
191,317
210,650
Leases and rents
90,843
-
-
90,843
52,546
Interest income
60,367
-
-
60,367
36,797
Donations
-
-
54,318
54,318
15,720
Charges for services
3,235
-
-
3,235
4,135
Other revenues
81,454
-
7,612
89,066
18,486
6,839,793
228,000
61,930
7,129,723
6,179,747
EXPENDITURES
General government
326,399
-
-
326,399
214,382
Law enforcement
2,669,035
-
-
2,669,035
2,494,222
Fire control
1,211,430
-
-
1,211,430
1,174,659
Building inspection
163,631
-
-
163,631
158,409
Street
1,054,574
-
-
1,054,574
1,035,804
Parks and recreation
437,882
-
-
437,882
488,874
Health and welfare
39,552
-
-
39,552
31,462
Street guarantee fund
-
-
5,000
5,000
-
Court fund
-
-
150
150
2,780
Parks Fund
-
-
-
-
14,333
Capital outlays
968,502
-
-
968,502
225,467
CIAWWC Authority
-
4,574
-
4,574
-
6,871,005
4,574
5,150
6,880,729
5,840,392
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(31,212)
223,426
56,780
248,994
339,355
OTHER FINANCING SOURCES (USES)
Proceeds from note payable
175,281
-
-
175,281
-
Principal payments
(20,352)
(228,911)
-
(249,263)
-
Interest expense
(5,330)
-
-
(5,330)
-
Proceeds from sale of assets
42,796
-
-
42,796
17,223
Transfers in (out)
198,724
-
(198,724)
-
-
391,119
(228,911)
(198,724)
(36,516)
17,223
NET CHANGE IN FUND BALANCES
359,907
(5,485)
(141,944)
212,478
356,578
BEGINNING FUND BALANCE
2,348,830
5,485
632,838
2,987,153
2,625,090
ENDING FUND BALANCE
$ 2,708,737
$ -
$ 490,894
$ 3,199,631
$ 2,981,668
(Continued)
22
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Reconciliation of the change in fund balances - total governmental funds
to the change in net assets of governmental activities:
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures while governmental activities report
depreciation expense to allocate those expenditures over the life of the assets. Capital asset
contributions from other entities are not recognized as a revenue for governmental purposes,
but are required to be recognized on the Statement of Activities:
Contributed capital assets
Capital asset purchases capitalized
Depreciation expense
The net affect of sales transactions involving capital assets
Deferred inflows of resources; unavailable revenues are not recorded as current period receipts
The issuance of long-term debt (e.g., bonds, leases) provides current financial resources to
governmental funds, while the repayment of the principal of long-term debt consumes the
current financial resources of governmental funds. Neither transaction, however, has any
effect on net assets. This amount is the net effect of these differences In the treatment of long-
term debt and related items
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
Change in net assets
23
See accompanying notes to financial statements
2013
Total
$ 212,478
2,254,771
968,502
(378,733)
(8,008)
(2,523)
73,982
16,805
$ 3,137,274
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2012
Noncurrent assets
Restricted assets
Bond reserves
Utility deposits
Interfund receivable
Advance to joint venture
Capital assets
Accumulated depreciation
LIABILITIES
Current Liabilities
Accounts payable
Payroll payable
Accrued compensated absences
Current portion of bonds payable
Accrued interest
Current portion of long-term debt
Payable from restricted assets -
Wated Sewer deposits
Noncurrent Liabilities
Revenue bonds payable,
net unamortized premium
Note payable
Compensated absences
NET POSITION
Invested in capital assets,
net of related debt
Restricted for bond service
Unrestricted
165,781
-
-
165,781
Internal Internal
-
208,235
1,820
Service Service
ASSETS Water
Sewer
Sanitation
Total
2012 Funds 2013 Funds 2012
Current assets
-
18,179,220
18,282,069
-
Cash and cash equivalents $5,066,984
$5,499,282
$1,724,159
$12,290,425
$10,879,107 $ $ -
Accounts receivable 281,523
284,947
151,308
717,778
756,616
5,348,507
5,784,229
1,875,467
13,008,203
11,635,723
Noncurrent assets
Restricted assets
Bond reserves
Utility deposits
Interfund receivable
Advance to joint venture
Capital assets
Accumulated depreciation
LIABILITIES
Current Liabilities
Accounts payable
Payroll payable
Accrued compensated absences
Current portion of bonds payable
Accrued interest
Current portion of long-term debt
Payable from restricted assets -
Wated Sewer deposits
Noncurrent Liabilities
Revenue bonds payable,
net unamortized premium
Note payable
Compensated absences
NET POSITION
Invested in capital assets,
net of related debt
Restricted for bond service
Unrestricted
165,781
-
-
165,781
169,081
-
208,235
1,820
250
210,305
182,324
-
18,179,220
-
18,179,220
18,282,069
-
-
8,069,355
4,133,072
2,710,544
14,912,971
13,770,007
259,643
259,643
(1,976,619)
(3,044,468)
(1,019,970)
(6,041,057)
(5,576,603)
(217,448)
(206,383)
6,466,752
19,269,644
1,690,824
27,427,220
26,826,878
42,195
53,260
11,815,259
25,053,873
3,566,291
40,435,423
38,462,601
42,195
53,260
32,118
110,248
23,659
166,025
93,345
1,618
1,531
11,519
8,863
4,699
25,081
22,083
-
10,140
10,140
1,571
21,851
16,737
-
-
110,000
-
-
110,000
110,000
-
-
-
-
5,764
5,764
65,966
16,616
436,512
121,219
574,347
411,413
-
208,235
1,820
250
210,305
182,324
-
-
388,628
567,583
157,162
1,113,373
901,870
1,618
1,531
1,705,619
-
-
1,705,619
1,824,814
-
-
234,832
16,436,563
1,265,080
17,936,475
19,163,609
-
-
40,561
40,561
6,282
87,404
66,953
-
1,981,012
16,477,124
1,271,362
19,729,498
21,0555,376
-
-
2,369,640
17,044,707
1,428,524
20,842,871
21,957,246
1,618
1,531
4,025,669
1,088,604
1,690,574
6,804,847
5,990,800
42,195
53,260
165,781
-
-
165,781
169,081-
-
5,254,169
6,920,562
447,193
12,621,924
10,345,474
(1,618)
(1,531)
$ 9,445,619 $ 8,009,166 $ 2,137,767
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise
activities.
24
19,592,552 $16,505,355 $ 40,577$ 51,729
40,577
$19,633,129
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012
NONOPERATING REVENUE (EXPENSE)
Interest income
644 -
644
32,121 -
Interest expense
(58,338) (77,839)
Internal
Internal
Capital Contributions
261,081 -
261,081
1,125,220 -
Gain (Loss) from asset disposal
2,400 - -
Service
Service
Water
Sewer
Sanitation
Total
2012
Funds 2013
Funds 2012
OPERATING REVENUES
8,097,280 6,814,992 1,593,083
- 51,728 68,332
PRIOR PERIOD ADJUSTMENT
(32,421) 83,659
- -
Service revenue
$ 767,313
$3,182,335
$1,584,390
$5,534,038
$5,237,750
$ 65,214
$ 67,555
Revenue used as security
service hand activities related to enterprise funds
(11,151)
Change in net assets of business -type adivites
$ 3,024,608
for revenue bond:
Charges for services
1,815,619
-
1,815,619
1,934,814
-
-
2,582,932
3,182,335
1,584,390
7,349,657
7,172,564
85,214
67,555
OPERATING EXPENSES
Salaries and wages
542,665
421,979
216,917
1,181,561
1,122,322
-
-
Personnel benefits
245,702
210,886
105,575
562,163
416,771
4,377
13,815
Rep airsand maintenance
155,101
246,968
299,272
701,341
713,096
21,265
11,767
Supplies and toots
54,512
7,219
40,272
102,003
111,190
5,074
3,567
Travel, meetings, and training
4,905
-
2,395
7,300
9,956
905
-
Fuels and lubricants
22,181
4,819
59,135
86,135
108,002
20,597
24,755
Telephone and communications
3,695
2,727
2,665
9,087
12,766
-
-
Utilities
156,886
9,554
3,499
169,939
149,103
13,082
12,209
Treatment - Pocatello
-
993,042
-
993,042
867,688
-
-
Insurance
18,740
12,743
14,242
45,725
47,009
Other purchased services
15,842
-
-
15,842
7,348
Professional services
41,478
23,114
11,469
76,061
89,904
Facilities plan
-
-
-
-
3,396
Bad debt
1,900
5,370
1,196
8,466
16,611
-
Depreciation
144,352
133,599
205,230
483,181
423,951
11,065
8,652
1,407,959
2,072,020
961,867
4,441,846
4,099,113
76,365
74,765
OPERATING INCOME
1,174,973
1,110,315
622,523
2,907,811
3,073,451
(11,151)
(7,210)
NONOPERATING REVENUE (EXPENSE)
Interest income
644 -
644
32,121 -
Interest expense
(58,338) (77,839)
(136,177)
(204,343) -
Capital Contributions
261,081 -
261,081
1,125,220 -
Gain (Loss) from asset disposal
2,400 - -
2,400
10,800 -
205,787 - (77,839)
127,948
963,798
NET INCOME (LOSS)
1,380,760 1,110,315 544,684
3,035,759
4,037,249 (11,151) (7,210)
BEGINNING NET POSITION, restated
8,097,280 6,814,992 1,593,083
- 51,728 68,332
PRIOR PERIOD ADJUSTMENT
(32,421) 83,659
- -
ENDING NET POSITION
$9,445,619 $8,009,166 $2,137,767
$4,037,249 $ 40,577 $ 61,122
Adjustment to reflect the consolidation of Internal
service hand activities related to enterprise funds
(11,151)
Change in net assets of business -type adivites
$ 3,024,608
25
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
CITY OF CHUBSUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012
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
Transfer from (to) other funds
Internal loan from (to) other funds
Advance to joint venture
Change in restricted cash
Net cash (used) in noncapital financing activities
CASH FLOW FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from debt
Principal paid on capital debt
Interest paid on capital debt
Proceeds from sale of capital assets
Purchase of capital assets
Net cash provided (used) in capital and related
financing activities
CASH FLOW FROM INVESTING ACTIVITIES
Interest and dividend received
Net cash provided by financing activities
NET INCREASE IN CASH AND CASH EQUIVALENTS
BEGINNING CASH AND CASH EQUIVALENTS
PRIOR PERIOD ADJUSTMENT
ENDING CASH AND CASH EQUIVALENTS
DEATON & COMPANY, CHARTERED
(645,173) (792,744) (255,437) (1,693,354) (940,315)
(836,648) (850,366) (590,972) (2,277,986) (887,007)
644
- -
644
32,121 - -
644
Internal
Internal
32,121 - -
533,251
568,043 258,586
1,359,880
2,855,688 - -
Service
Service
Water
Sewer
Sanitation
Total
2012
Funds 2012
Funds 2011
$2,607,210
$3,182,504
$1,590,315
$ 7,380,029
$ 7,105,380
$ 65,214
$ 67,555
(467,305)
(1,248,091)
(418,399)
(2,133,795)
(2,065,628)
(60,837)
(67,555)
(773,950)
(618,853)
(322,358)
(1,715,161)
(1,555,129)
(4.377)-
1,365,955
1,315,560
849,558
3,531,073
3,484,623
-
-
-
-
-
-
678,361
-
-
-
-
-
-
117,824
-
-
-
102,849
-
102,849
(639,134)
-
-
3,300
-
-
3,300
68,900
-
-
3,300
102,849
-
105,149
225,951
-
-
-
-
-
-
713,732
-
-
(135,537)
-
(255,114)
(390,651)
(498,092)
-
-
(58,338)
(57,622)
(80,421)
(196,381)
(162,332)
-
-
2,400
-
-
2,400
-
(645,173) (792,744) (255,437) (1,693,354) (940,315)
(836,648) (850,366) (590,972) (2,277,986) (887,007)
644
- -
644
32,121 - -
644
- -
644
32,121 - -
533,251
568,043 258,586
1,359,880
2,855,688 - -
4,566,154
4,847,380 1,465,573
10,879,107
8,023,419 - -
(32,421)
83,859 -
51,438
-
$5,066,984
$5,499,282 $1,724,159
$ 12,290,425
$ 10,879,107 $
26
See accompanying nates to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012
RECONCILIATIONS OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation
Bad debt expense
Prior period adjustment
(Increase) decrease in assets
Accounts receivable
Increase (decrease) in liabilities
Accounts payable
Accrued compensated absences
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
DEATON & CONWANY, CHARTERED
Water Sewer Sanitation Total
$1,174,973 $1,110,315 $ 622,523 $ 2,907,811
Internal
Internal
Service
Service
2012 Funds 2013
Funds 2012
$ 3,073,451 $ (11,151)
$ (7,210)
144,352
133,599
205,230
483,181
423,951 11,065 8,652
1,900
5,370
1,196
8,466
- - -
24,278
169
5,925
30,372
(50,573) - -
7,878
53,533
14,267
75,678
54,752 86 (1,442)
12,574
12,574
417
25,565
(16,958) - -
190,982
205,245
227,035
623,262
411,172 11,151 7,210
$1,365,955
$1,315,560
$ 849,558
$ 3,531,073
$ 3,484,623 $ - $ -
27
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF FIDUCIARY NET ASSETS
RECREATIONAL PROGRAMS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012
Recreation
Programs Trust
Fund 2013 2012
Assets
Cash $ 36,468 $ 20,797
36,468 20,797
Liabilities
Accounts payable
Net Assets
Held in trust for recreation programs $ 36,468 $ 20,797
28
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
STATEMENT OF CHANGES IN FIDUCIARY NET ASSETS
RECREATIONAL PROGRAMS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2013
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2012
Additions
Contributions:
Registration Fees
Sponsorships
Total additions
Deductions
Director's compensation
Boy's baseball
Girl's softball
Tee/tiger ball
Total deductions
Change in net assets
Net assets - beginning of the year
Prior period adjustment
Net assets - end of the year
29
Recreation
Programs
Trust Fund
2013
$ 57,170
13,136
70,306
4,500
22,983
20,335
6,817
544,635
15,671
20,797
$ 36,468
2012
$ 48,325
16,441
64,766
4,500
25,644
16,961
6,609
53,714
11,052
9,745
$ 20,797
See accompanying notes to financial statements
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 14`
NOTE 7 - 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 63.
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. 14,
"The Financial Reporting Entity". Currently, the City reports two component unit; the Chubbuck Development
Authority and the Chubbuck Impact Area Waste Water Authority.
Discretely Presented Component Unit
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 infrastructures, purchasing land
and demolishing blighted structures or rehabilitating structures to provide for low income housing, among others.
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 Treasury, City of Chubbuck, 5160
Yellowstone Ave, Chubbuck, Idaho 83202.
Blended Component Unit
Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA)
Effective September 1, 2007, Bannock County, Idaho, City of Pocatello, Idaho and the City of Chubbuck, Idaho
entered into a Joint Powers Agreement creating the Chubbuck Impact Area Wastewater Collection Authority for
the purpose of financing, designing, acquiring, constructing, managing, and operating a sewage collection facility
along with transmission mains and lift stations to serve those who own and operate a collection system under
Idaho Law for the residents of the City of Chubbuck, Idaho. The Authority is a public entity of the State of Idaho,
therefore, the Authority's income is exempt form Federal and Idaho income taxes. A six -member board governs
the Chubbuck Impact Area Wastewater Collection Authority with two members representing Bannock County,
two members representing the City of Pocatello and two members representing the City of Chubbuck. The City
of Chubbuck provides loans to the Authority with no interest or maturity date. Outstanding balance of loans to
the authority at year-end totaled $18,179,220.
30
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 14)
NOTE 1 - Summa of Significant Accounting Policies Continued
A. Reporting Entity (Continued)
Upon termination of this Agreement, title to all buildings, improvements, facilities, equipment and personal
property held by the Authority shall vest in the City of Chubbuck.
Complete financial statements of the Authority can be obtained from the Treasury, City of Chubbuck, 5160
Yellowstone Ave, Chubbuck, Idaho 83202.
B. Basis of Presentation
Government -wide Statements
The Statement of Net Assets and Statement of Activities display 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.
Fend Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be
separate accounting entities. Each fund is accounted for by providing a separate set of self -balancing accounts
that constitute its assets, liabilities, fund equity, revenues, and expend iturelexpenses. 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/expenses 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/expenses of the individual govemmental 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,
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.
31
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 14)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation (Continued)
Proprietary Funds
Enterprise Funds
Enterprise funds are used to account for business -like activities provided to the general public. These activities
are financed primarily by user charges and the measurement of financial activity focuses on net income
measurement similar to the private sector. The reporting entity includes the water, sewer and sanitation funds.
Internal Service Funds
Internal service funds account for repairs and maintenance service for vehicles and equipment provided to other
departments or agencies of the City on a cost reimbursement basis.
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 Assets 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 as appropriate:
a. All govemmental funds utilize a "current financial resources" measurement focus. Only current financial
assets and liabilities are generally 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 assets (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 assets.
Basis of Accounting
In the government -wide Statement of Net Assets 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.
32
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 14)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
C. Measurement Focus and Basis of Accounting (Continued)
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 special revenue funds. All annual appropriations lapse at fiscal year
end.
Each month the City prepares a financial report that reflects the actual and budgeted financial data. A strict
purchase order system is used in controlling and maintaining expenditures within budget categories. This data is
reviewed by the City Council. The City does not use the encumbrance method of accounting.
The excess expenditures were funded by donated capital outlays, decreased expenditures in other functional
expenditures, and proceeds in excess of the amount budgeted.
E. Cash and Cash Equivalents
For the purpose of the Statement of Net Assets, "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. Property, Plant, and Equipment
The accounting treatment for property, plant and equipment depends on whether the assets are used in
governmental fund operations or proprietary fund operations and whether they are reported in the government -
wide or fund financial statements.
Government -wide Statements
In the government -wide financial statements, fixed assets are accounted for as capital assets. All fixed assets
are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated fixed 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,
33
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 14)
NOTE 1 - Summary of Significant Accounting_ Policies (Continued)
F. Property, Plant, and Equipment (Continued)
Governmental fund infrastructure assets were not capitalized prior to October 1, 2003.
Depreciation of all exhaustible fixed assets is recorded as an allocated expense in the Statement of Activities,
with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is provided over the
assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives
by type of asset is as follows:
Buildings
Other structures
Vehicles
Equipment
Fund Financial Statements
20-50 years
5-40 years
5-30 years
5-40 years
In the fund financial statements, fixed assets used in governmental fund operations are accounted for as capital
outlay expenditures of the governmental fund upon acquisition. Fixed assets used in proprietary fund operations
are accounted for the same as in the government -wide statements.
G. Restricted Assets
Restricted assets include cash and investments of the general fund that are legally restricted as to their use.
The primary restricted assets are related to employee benefits.
Restricted assets include cash and investments of the proprietary fund that are legally restricted as to their use.
The primary restricted assets are related to utility deposits and bond reserve requirements.
When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted
resources first, then unrestricted resources as they are needed.
H. Long-term Debt
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund
operations or proprietary fund operations and whether they are reported in the government -wide or fund financial
statements.
All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the
government -wide statements. The long-term debt consists primarily of notes payable, capital leases, and
accrued compensated absences.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. Debt
proceeds are reported as other financing sources. Payment of principal and interest are reported as
expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -
wide statements.
34
DEATON & COMPANY, CHARTERED
CITY OF CHUSBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 14)
NOTE 1 - Summary of Significant Accounting Policies (,..,Continued)
I. 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.
J. 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.
K. Equity Classifications
Government -wide Statements
Equity is classified as net assets and displayed in three components:
a. Invested in capital assets, net of related debt- Consists of capital assets including restricted 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 net assets - Consists of net 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 net assets - All other net assets that do not meet the definition of "restricted" or "invested in
capital assets, net of related debt."
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.
35
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 14)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
L. 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.
NOTE 2 - Legal Compliance - Budgets
Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the
City Council a proposed operating budget for the fiscal year commencing the following October 1. The budget is
prepared by fund, function and activity, 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.
Expenditures may not legally exceed budgeted appropriations at the activity level. During the year, several
supplementary appropriations may be necessary.
NOTE 3 - Restricted Assets and Payable from Restricted Assets
Assets have been set aside for special items and are restricted for that purpose. Restricted resources are used
only after the unrestricted resources are depleted. To date cash has been restricted for the following items:
Proprietary
Bond reserves
Utility deposits
Total
$ 165,781
210,305
$ 376,086
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 $210,305 at year-end.
NOTE 4 - Property Tax
Bannock County has the responsibility of assessing and collecting all property taxes. Taxes levied for the year
are payable in two installments due December 20th of the current year and June 20th of the following year. The
County remits property taxes collected to the City monthly.
Property taxes are recognized as revenue when received for monthly reporting purposes. At year end, an
accrual is made to recognize property taxes receivable at year end. At year end, $335,744 in outstanding
property taxes were expected to be collected and remitted by the County.
36
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 14)
NOTE 5 - Cash and Cash Equivalents and Investments
Primary Government:
Deposits at year end consist of the following:
Deposits
Cash in bank - carrying amount
Restricted $ 376,086
Unrestricted 15,298,175
$ 15,674,261
Fiduciary Fund:
Cash $ 36,468
$ 36,468
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 of the City's deposits (cash and certificates
of deposit) was $15,710,729 and the bank balance was $12,564,440. The deposits were covered by
collateralized accounts or federal depository insurance of $250,000 per bank. The City uses various commercial
banks to limit their exposure to custodial credit risk, however, some of the City's deposits including the State of
Idaho, Local Government Investment Pool (LGIP) at year-end were not insured nor collateralized in the amount
of $3,316,155.
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 City has no investments
Component Unit - Chubbuck Development Authority (CDA):
Deposits at year end consist of the following:
Deposits
Cash in bank - carrying amount
Unrestricted
$ 1,649,558
Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's
deposits may not be returned to it. At year-end the carrying amount and bank balance of CDA's deposits (cash
and certificates of deposit) was $1,649,558. At year-end, all the Authority's deposits were held in the LGIP.
Deposits in the LGIP are not insured or guaranteed by the Federal Deposit Insurance Corporation, the State of
Idaho or any other government agency. CDA's deposits in the bank at year-end were subject to custodial credit
risk_
The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and
regulations. The reported value of the pools is the same as the fair value of the pool shares.
Investments - The CDA has no investments
37
DEATON & COMPANY, CHARTERED
CITY OF CHUSBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 14)
NOTE 5 - Cash and Cash Equivalents and Investments (Continued)
Component Unit - Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA),
Deposits and Investments - The CIAWWCA has no deposits or investments.
Deposits at year end consist of the following:
Deposits
Cash in bank - carrying amount
Unrestricted
Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's
deposits may not be returned to it. At year-end the carrying amount and bank balance of CIAWWCA's deposits
(cash and certificates of deposit) was $0. At year-end, all the Authority's deposits were held in a financial
institution. All deposits were guaranteed by the Federal Deposit Insurance Corporation and were not subject to
custodial credit risk.
NOTE 6 - Receivables
All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging
delinquent balance report. Historically 100% of property taxes have been collected, therefore, there is no
allowance for uncollectible property tax receivables.
Receivables as of year-end for the City's business -type funds are as follows:
Water Sewer Sanitation Total
Accounts Receivables $ 329,737 5841,643
Allowance for Doubtful Accounts (48,214) (45,204) (30,447) (123,865)
$ 281,523 $ 284,947 $ 151,308 $ 717,778
NOTE 7 - Concentration of Credit Risk
Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of a deposit. The City
manages its exposure to declines in fair value by limiting the average maturity of its deposits to one year or less,
or redeemable on demand with no penalty.
Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to
minimize credit risk through diversification of deposits within the choices allowed under state statutes.
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.
38
DEATON & COMPANY, CHARTERED
CITY OF CHUBSUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 14)
NOTE 8 - Changes in Fixed Assets
A summary of general fixed assets at year end is as follows:
A summary of proprietary type fixed assets at year end is as follows:
Nondepreciable assets
Land
Water Rights
Work in process
Office Equipment
Buildings and Improvements
Vehicles and Equipment
Bond Fees
Accumulated Depreciation
NOTE 9 - Long-term Debt and Accrued Compensation
Accrued Compensated Absences:
Current portion
Noncurrent portion
Long-term Debt:
Beginning Ending
Balance Additions Deletions Balance
$ 709,854
Beginning
-
$ 709,854
Ending
644,473
Balance
Additions
Deletions
Balance
Nondepreciable assets
-
196,905
-
-
Land
$ 90,866
$ 143,453
$ -
$ 234,319
Infrastructures
3,075,550
182,833
-
3,258,383
Work in process
20,620,369
2,214,151
33,446
22,801,074
Buildings and Improvements
2,854,621
394,247
-
3,248,868
Vehicles and Equipment
3,751,745
431,627
253,168
3,930,204
30,393,151
3,366,311
286,614
33,472,848
Accumulated Depreciation
4,387,765
378,733
244,563
4,521,935
$ 26,005,386
$ 2,987,578
$ 42,051
28.950.913
A summary of proprietary type fixed assets at year end is as follows:
Nondepreciable assets
Land
Water Rights
Work in process
Office Equipment
Buildings and Improvements
Vehicles and Equipment
Bond Fees
Accumulated Depreciation
NOTE 9 - Long-term Debt and Accrued Compensation
Accrued Compensated Absences:
Current portion
Noncurrent portion
Long-term Debt:
Beginning Ending
Balance Additions Deletions Balance
$ 709,854
$ - $
-
$ 709,854
1,192,442
644,473
14,407
1,822,508
19,660
-
19,660
-
196,905
-
-
196,905
9,054,940
280,741
-
9,335,681
2,837,836
288,557
18,727
3,107,666
18,013
-
18,013
-
14, 029, 650
1,213,771
70,807
15,172, 614
5,782,986
512,259
36,740
6,258,505
$ 8,246,664
$ 701,512 $
34,067
$ 8,914,109
Governmental Business -type
$ 61,234 $ 21,851
244,935 87,404
$ 306.169 $ 109.255
The City's long-term debt is segregated between the amounts to be repaid from governmental activities and
amounts to be repaid from business -type activities.
Governmental Activities:
As of year end, the governmental long-term debt of the City consisted of the following:
KU*
DEATON & COMPANY, CHARTERED
CITY OF CHUBSUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 14)
NOTE 9 - Long-term Debt and Accrued Compensation Continued
Capital Lease Obligation:
Equipment purchase note; issue amount $175,281; dated December 3,
2012; interest rate of 2.93% with final maturity dated December 5, 2018.
Monthly payments of $2,659. $ 154,929
Less current portion
Noncurrent portion
Business -type activities:
27,739
$ 127,190
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
$ 16,616
234,832
$ 251,448
At year-end the City was authorized, on a line -of -credit, to borrowed $19,841,414 from the Department of
Environmental Quality (DEQ) under five (5) separate loans. One loan of $1,400,000 requires the principal and
3% interest to be paid in biannual installments over 20 years. The other four (4) loans have zero percent interest
rate and are required to be paid in biannual installments over 20 years at the close of the loan. At year-end two
of the five loans were closed. The notes are used to finance the designing and constructing of the Chubbuck
Northwest Sewer Interceptor. It may also be used to finance services to provide environmental field studies,
public involvement, and agency permit applications. If funds allow, it may include the purchase of needed right-
of-way for construction of the sewer system. At year-end the balance available to the City was $661,678.
Available 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. $ - $ 192,579
DEQ line of credit at zero percent interest, with biannual payment of $200,990
for 20 years, and a maturity date of fiscal year 2034. Loan set to close fiscal
year 2014. 661,678 8,039,582
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 March
26,2013. - 8,510,284
DEQ line of credit at zero percent interest, with biannual payment of $3266 for
20 years, and a maturity date of February 16, 2034. Loan set to close fiscal
year 2014. 130,630
$ 661,678 $ 16,873,075
Less current portion 436,512
Noncurrent portion $ 16,436,563
40
DEATON & COMPANY, CHARTERED
CITY OF CHUBSUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 14)
NOTE 9 - Lon -term Debt and Accrued Com ensation Continued
The City issued two utility bonds. On October 1, 1972, the City issued its Sewer Revenue Bonds, at 5.425% and
mature on October 1, 2013. These bonds were paid in full on September 10, 2012. The Water Revenue Bonds,
Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of
$110,330. The bond carries interest rates between 2 and 4.75% and a maturity date of September 1, 2026,
Bonds Payable:
Water Revenue Bond
Less current portion
Noncurrent portion
Net Premium Principal
$ 95,619 $ 1,720,000
$ 95,619 1,720,000
110,000
_ 1.610.000
Bond premiums, net amortization totaled $110,300. Bond expenses, net amortization totaled $19,300. The
bond premium and expenses are amortized over fifteen (15) years, the life of the bond. Bond premium
amortization of $9,194 and expense of $1,287 was recognized at year-end.
Notes Payable
On June 4, 2008, the City issued three notes to purchase assets needed in order to collect sanitation for the City.
Notes one and two were issued at 5.50% and the third note at 5.25%. The third note was refinanced in 2009.
The notes were issued for $936,576, $541,537 and $1,375,000 with monthly payments of $17,890, $6,985, and
$9,321, respectively until the maturity date of May 5, 2013, 2016 and 2029, respectively.
Notes Payable:
Balance
Note 1
$ -
Note 2
206,040
Note 3
1.180.259
1,386,299
Less current portion
121,219
Noncurrent portion
$ 1,265,080
Annual Debt Service Requirements for leases, bonds and notes
payable
Year Ending
Governmental Activities
Business -type
Activities
September 30
Principal
Interest
Principal
Interest
2014
$ 27,739
$ 4,171
$ 1,108,738
$ 237,560
2015
28,567
3,347
1,117,147
233,479
2016
29,414
2,499
1,070,552
182,518
2017
30,287
1,524
1,045,665
139,342
2018
31,186
860
1,036,989
129,968
2019-2023
7,736
37
5,389,743
489,465
2024-2028
-
-
5,202,018
186,464
2029-2032
-
-
4,259,970
99,032
$ 154,929
$ 12,438
$ 20,230,822
$ 1,697,828
41
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 14)
NOTE 9 - Long-term Debt and Accrued Compensation Continued
Changes in long-term liabilities
Long-term liability activity for the year was as follows:
Beginning Ending Due within
Balance Additions Reductions Balance one year
Governmental activities
Capital leases $ - $ 175,281 $ 20,352 $ 154,929 $ 27,739
Compensated absences 327,175 422,702 443,708 306,169 61,234
$ 327,175 $ 597,983 $ 464,060 $ 461,098 $ 88,973
Long-term portion $ 244,935
Long-term portion $ 19,633,879
NOTE 10 - Pension Disclosures
The Public Employee Retirement System of Idaho (PERSI) - The PERSI Base Plan, a cost sharing multiple -
employer public retirement system, was created by the Idaho State Legislature. It is a defined benefit plan
requiring that both the member and the employer contribute. The plan provides benefits based on members
years of service, age and compensation. In addition, benefits are provided for disability, death, and survivors of
eligible members or beneficiaries. The authority to establish and amend benefit provisions is established in
Idaho Code. Designed as a mandatory system for eligible state and school district employees, the legislation
provided for other political subdivisions to participate by contractual agreement with PERSI. After 5 years of
credited services, members become fully vested in retirement benefits earned to date. Members are eligible for
retirement benefits upon attainment of the ages specified for their employment classification. For each month of
credited service, the annual service retirement allowance is 2.0% (2.3% police/firefighters) of the average
monthly salary for the highest consecutive 42 months.
PERSI issues publicly available stand alone financial reports that include audited financial statements and
required supplementary information. These reports may be obtained from PERSI's website
www.persi.tdaho.gov.
The contribution requirements of the City of Chubbuck and its employees are established and may be amended
by the PERSI Board of Trustees. On July 1, 2013 the required contribution rate as a percentage of covered
payrolls for members was increased form 6.23% to 6.79% for general member and from 7.69% to 8.36% for
police/firefighter members. The employer rate as a percentage of covered payroll was increased from 10.39% to
11.32% for general members and from 10.73% to 11.66% for police/firefighter members. The City of Chubbuck
contributions required and paid were $414,092, $398,799, and $402,921, for the three years ended September
30, 2013, 2012, and 2011, respectively.
42
DEATON & COMPANY, CHARTERED
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Business -type activities
Bonds payable
$ 1,830,000
$ -
$ 110,000
$ 1,720,000
$ 110,000
Notes payable
19,575,021
614,724
1,678,923
18,510,822
574,347
Compensated absences
83,690
109,254
83,689
109,255
21,851
$ 21,488,711 -
$ 723,978
__$ 1,872,612
$ 20,340,077
$ 706,198
Long-term portion $ 19,633,879
NOTE 10 - Pension Disclosures
The Public Employee Retirement System of Idaho (PERSI) - The PERSI Base Plan, a cost sharing multiple -
employer public retirement system, was created by the Idaho State Legislature. It is a defined benefit plan
requiring that both the member and the employer contribute. The plan provides benefits based on members
years of service, age and compensation. In addition, benefits are provided for disability, death, and survivors of
eligible members or beneficiaries. The authority to establish and amend benefit provisions is established in
Idaho Code. Designed as a mandatory system for eligible state and school district employees, the legislation
provided for other political subdivisions to participate by contractual agreement with PERSI. After 5 years of
credited services, members become fully vested in retirement benefits earned to date. Members are eligible for
retirement benefits upon attainment of the ages specified for their employment classification. For each month of
credited service, the annual service retirement allowance is 2.0% (2.3% police/firefighters) of the average
monthly salary for the highest consecutive 42 months.
PERSI issues publicly available stand alone financial reports that include audited financial statements and
required supplementary information. These reports may be obtained from PERSI's website
www.persi.tdaho.gov.
The contribution requirements of the City of Chubbuck and its employees are established and may be amended
by the PERSI Board of Trustees. On July 1, 2013 the required contribution rate as a percentage of covered
payrolls for members was increased form 6.23% to 6.79% for general member and from 7.69% to 8.36% for
police/firefighter members. The employer rate as a percentage of covered payroll was increased from 10.39% to
11.32% for general members and from 10.73% to 11.66% for police/firefighter members. The City of Chubbuck
contributions required and paid were $414,092, $398,799, and $402,921, for the three years ended September
30, 2013, 2012, and 2011, respectively.
42
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 14)
NOTE 11 - Risk Management
The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of
substantial losses.
NOTE 12 - Subseouent Events
Subsequent events were evaluated up to March 28, 2014, the date the financial statements were available to be
issued.
NOTE 13 - Other Postemplovment Benefits
The City complies with Idaho's requirements under the Consolidated Omnibus Budget Reconciliation Act
(COBRA). The liability under state requirements related to other
insurance COBRA program is not required to be reported. The
employment benefit (OPEB).
NOTE 14 - Correction of an Error and Prior Period Adjustments
Adjustments Business -type activities:
post -employment benefits for the medical
City does not participate in any other post -
During the year the City discovered the Sewer fund had not capitalized interest used to build capital
improvements in the amount of $83,859. It was also discovered that expenses were capitalized as water rights
but should have been reported as an expense in the amount of $32,421. These adjustments increased the
business -type net position by $51,438.
NOTE 15 - Accounting Changes and Accounting Standards
In fiscal year 2013, the City implemented Governmental Accounting Standards Board (GASB) Statement 61 'The
Financial Reporting Entity: Omnibus -An amendment of GASB Statements No. 14 and No. 34", Statement 63
"Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of Resources, and Net Position", and
Statement 65 "Items Previously Reported as Assets and Liabilities". Statement 61 modifies certain requirements
for inclusion of component units in the financial reporting entity. Statement 63 will improve financial reporting by
standardizing the presentation of deferred outflows of resources and deferred inflows of resources and their
effect on a government's net position. The objective of Statement 65 is to either properly classify certain items
that were previously reported as assets and liabilities as deferred outflows of resources or deferred inflows of
resources or to recognize certain items that were previously reported as assets and liabilities as outflows of
resources (expenses or expenditures) or inflows of resources (revenues).
The implementation of Statement 61 and 65 resulted in the reclassification of the beginning net position of the
governmental activities in the government -wide financial statements. The CIAWWCA was included as a blended
component unit to the governmental activities and the deferred charges for issuance costs were reported as
expenses of the prior period and resulted in the adjustments below.
Beginning fund balance
Blended Component Unit - CIAWWCA, Beginning fund balance
Adjusted beginning fund balance
43
2013
$10,602,957
5,485
$10,608,442
DEATON & COMPANY, CHARTERED
REQUIRED SUPPLEMENTARY INFORMATION
44
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2013
Budgeted Amounts
Original Final
Resources
Variance
Actual Positive
Amounts (Negative)
General property taxes and sales tax
$ 4,936,090
$ 4,936,090
$ 4,984,949
$ 48,859
Franchise fees
222,000
222,000
192,151
(29,849)
Intergovernmental
900,000
900,000
955,679
55,679
Parks revenue
3,600
3,600
1,720
(1,880)
Licenses, permits and fines
149,500
149,500
203,578
54,078
Grants
-
-
74,500
74,500
Fire protection and prevention
-
-
191,317
191,317
Leases and rents
-
-
90,843
90,843
Interest income
50,000
50,000
60,367
10,367
Donations
-
-
-
-
Charges for services
233,000
233,000
3,235
(229,765)
Other resources
628,523
628,523
81,454
(547,069)
Amounts available for appropriations
7,122,713
7,122,713
6,839,793
(282,920)
Charges to appropriations
General government
Law enforcement
Fire control
Building inspection
Street
Parks and recreation
Health and welfare
Capital Outlays
Total charges to appropriations
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources (Uses)
Proceeds from note payable
Principal payments on leases
Interest expense
Proceeds from sale of assets
Transfer in (out)
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
915,990
915,990
326,399
589,591
2,872,274
2,872,274
2,669,035
203,239
1,205,955
1,205,955
1,211,430
(5,475)
183,257
183,257
163,631
19,626
1,021,415
1,021,415
1,054,574
(33,159)
703,365
703,365
437,882
265,483
33,275
33,275
39,552
(6,277)
130,300
130,300
968,502
(838,202)
7,065, 831
7,065,831
6,871, 005
194,826
56,882 56,882 (31,212) (88,094)
- - 175,281
175,281
- - (20,352)
(20,352)
- - (5,330)
(5,330)
- - 42,796
42,796
- - 198,724
- - 391,119
192,395
56,882 56,882 359,907
104,301
7,095 7,095
$ 63,977 $ 63,977
45
2,348,830 2,341,735
$ 2,708,737 $ 2,446,036
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2013
NOTE 1 - EXPENDITURES IN EXCESS OF BUDGET
GENERALFUND
Fire Control
The City had expenditures in excess
expenditures. Increased maintenance,
the budget. These expenditures were
departments.
Heatlh & Welfare
of budget of $5,475 due to an increase in fire control
fuel, and equipment expenditures were not accounted for in
paid by decreased expenditures in other functions and
The City had expenditures in excess of budget of $6,277 due to an increase in health and welfare
expenditures. These expenditures were paid by decreased expenditures in other functions and
departments.
Street
The City had expenditures in excess of budget of $33,159 due to an increase in highway, streets and
roads expenditures. Increased highway and street maintenance, repairs and maintenance, and
personnel expenditures were not accounted for in the budget. These expenditures were paid by
decreased expenditures in other functions and departments.
Cavital Outlaws
The City had expenditures in excess of budget of $838,202 due to the purchase of additional assets
not accounted for in the budget. Theses assets included land, equipment, and vehicles that were not
accounted for in the budget. These expenditures were paid by decreased expenditures in other
functions and departments.
46
DEATON & COMPANY, CHARTERED
OTHER SUPPLEMENTARY INFORMATION
47
DEATON & COMPANY, CHARTERED
ASSETS
Cash
FUND BALANCES
Committed, reported in:
Special revenue fund
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2013
S ecial Revenue
Street General Juvenile Road Total
Guarantee LID Referral Court Projects Parks Nonmajor
Fund Fund Fund Fund Fund Fund Funds
$ 10,514 $ - $ 5,059 $ 65,242 $ 164,622 $ 245,457 $ 490,894
$ 10,514 $ - $ 5,059 $ 65,242 $ 164,622 $ 245,457 $ 490,894
48
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
REVENUES
Donations
Other revenues
EXPENDITURES
Other purchased services
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES
Transfers in (out)
NET CHANGE IN FUND BALANCES
BEGINNING FUND BALANCE
ENDING FUND BALANCE
DEATON & COMPANY, CHARTERED
49
See accompanying notes to financial statements
Special Revenue
Street
General
Juvenile
Road
Total
Guarantee
LID
Referral
Court
Projects
Parks
Nonmajor
Fund
Fund
Fund
Fund
Fund
Fund
Funds
$ -
$ -
$ -
$ -
$ -
$ 54,318
$ 54,318
-
-
-
7,612
-
-
7,612
-
-
-
7,612
-
54,318
61,930
5,000
-
-
150
-
-
5,150
5,000
-
-
150
-
-
5,150
(5,000)
-
-
7,462
-
54,318
56,780
-
(198,724)
-
-
-
-
(198,724)
(5,000)
(198,724)
-
7,462
-
54,318
(141,944)
15,514
198,724
5,059
57,781
164,622
191,138
632,838
$ 10,514
$ -
$ 5,059
$ 65,243
$ 164,622
$ 245,456
$ 490,894
49
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Budgeted Amounts
Original Final
Resources
General property taxes and sales tax
$ 15,000
$ 15,000
Interest income
11,900
11,900
Donations
80,000
80,000
Other resources
40,000
40,000
Amounts available for appropriations
146,900
146,900
Charges to appropriations
Street guarantee fund
15,500
15,500
General LID fund
3,600
3,600
Juvenile referral fund
500
500
Court fund
42,100
42,100
Road projects fund
1,200
1,200
Parks fund
84,000
84,000
Total charges to appropriations
146,900
146,900
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
50
See accompanying notes to financial statements
Variance
Actual Positive
Amounts (Negative)
$ - $ (15,000)
(11,900)
54,318 (25,682)
7,612 (32,388)
61,930 (84,970)
5,000 10,500
- 3,600
- 500
150 41,950
- 1,200
- 84,000
5,150 141,750
(141,944) (141,944)
632,838 632,838
$ 490,894 $ 490,894
DEATON & COMPANY, CHARTERED
COMPLIANCE AND SINGLE AUDIT SECTION
51
DEATON & COMPANY, CHARTERED
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208) 232-5825
Members of Idaho Society of Certified Public Accountants
Members of American Institute of Certified Public Ac—,tams
I mum 'all M ra
WP M W L t AL
i. a • i u .
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, 2013, and the related notes to the financial statements, which
collectively comprise City of Chubbuck's basic financial statements, and have issued our report thereon dated
March 28, 2014.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered City of Chubbuck's internal control over financial reporting
as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of City of Chubbuck's
internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City of Chubbuck's internal control over financial reporting.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial
statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a
deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section
and was not designed to identify all deficiencies in internal control that might be material weaknesses or,
significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal
control that we consider to be material weaknesses. However, material weaknesses may exist that have not
been identified. We did not identify any deficiencies in internal control over financial reporting, that we would
consider to be a significant deficiency in internal control over financial reporting.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Chubbuck's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results
of our tests disclosed no instances of noncompliance or other matters that are required to be reported under
Government Auditing Standards.
City of Chubbuck's Response to Findings
City of Chubbuck's response to the findings identified in our audit is described in the accompanying schedule
of findings and questioned costs. City of Chubbuck's response was not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on it.
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.
!ng
Pocatello, Idaho
March 28, 2014
DEATON & COMPANY, CHARTERED
Deaton & Company, Chartered
Certified Public Accountants
215 North 91h, Suite A
Pocatello, Idaho 83201-5278
(208)232-5825
Members of Idaho Society of Certified Public Accountants
Members of American Tnstiutle of Certified Pubtic Accountants
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INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE A
DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Mayor and Members of the City Council
City of Chubbuck, Idaho
Report on Compliance for Each Major Federal Program
We have audited City of Chubbuck's compliance with the types of compliance requirementse described in the
OMB Circular A-133 Compliance Supplement that could have a direct and material effect on each of City of
Chubbuck's major federal programs for the year ended September 30, 2013. City of Chubbuck's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of findings and
questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants
applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of City of Chubbuck's major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller
General of the United States; and OMB Circular A-133, Audits of States, Local Governments, and Non -Profit
Organizations. Those standards and OMB Circular A-133 require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements referred to
above that could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about City of Chubbuck's compliance with those requirements and
performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of City of Chubbuck's compliance.
Opinion on Each Major Federal Program
In our opinion, City of Chubbuck, complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its major federal programs for the year
ended Septemeber 30, 2013.
Report on Internal Control Over Compliance
Management of City of Chubbuck, is responsible for establishing and maintaining effective internal control over
compliance with the requirements of laws, regulations, contracts, and grants applicable to federal programs. In
planning and performing our audit, we considered City of Chubbuck's internal control over compliance with the
requirements that could have a direct and material effect on a major federal program to determine the auditing
procedures for the purpose of expressing our opinion on compliance and to test and report on internal control
over compliance in accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness
of City of Chubbuck's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance
does not allow management or employees, in the normal course of performing their assigned functions, to
prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a
timely basis. A material weakness in intemal control over compliance is a deficiency, or combination of
deficiencies, in internal control over compliance, such that there is a reasonable possibility that material
noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and
corrected, on a timely basis.
Our consideration of internal control over financial reporting was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over financial
reporting that might be deficiencies, significant deficiencies, or material weaknesses. We did not identify any
deficiencies in internal control over financial reporting that we consider to be material weaknesses, as defined
above.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of
internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133.
Accordingly, this report is not suitable for any other purpose.
Pocatello, Idaho
March 28, 2414
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
Federal
CFDA
FEDERAL GRANTORIPASS — THROUGH GRANTOR Number Grant No.
Grant Awards
ENVIRONMENTAL PROTECTION AGENCEYIBUREAU OF LAND
MANAGEMENT 15-242 L08AC14105-0005
Loan Awards
DEPARTMENT OF ENVIRONMENTAL QUALITY 66-458
OW -9926
66-458
WWO803
66-458
W W 1009
66-458
WW1014
TOTAL EXPENDITURES OF FEDERAL AWARDS
' These awards were through the American Recovery and Reinvestment Act.
** These awards were considered major federal awards.
56
DEATON & COMPANY, CHARTERED
Amount Expenditures Total
Awarded this Period Expenditures
$
10,000
$
10,000
$ 10,000
$
10,000
$
10,000
$ 10,000
' $
279,589
$
-
$ 279,589
156,389
-
156,389
5,610,197
469,058
5,062,602
7,171,899
145,666
7,171,899
13,218,074
614,724
12,670,479
$
13,228,074
$
624,724
$12,680,479
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
SUMMARY OF AUDIT RESULTS
1. The auditor's report expresses an unqualified opinion on the financial statements of City of Chubbuck.
2. No reportable conditions disclosed during the audit of the financial statements are reported in the
Independent Auditor's Report.
3. No instances of noncompliance material to the financial statements of City of Chubbuck were
disclosed during the audit.
4. Reportable conditions relating to the audit of major federal award programs included significant
deficiencies due to a lack of controls over asset additions and deletions reporting and the lack of
controls over notes and lease liability reporting. These significant deficiencies are reported in the
Report on Compliance with Requirements Applicable to Each Major Program and on Internal Control
Over Compliance in accordance with OMB Circular A-133.
5. The Auditor's report on compliance for the major federal award programs for City of Chubbuck
expresses an unqualified opinion on all major federal programs.
6. Audit findings relative to major federal programs for City of Chubbuck are reported in this Schedule.
7. The programs tested as major programs included Department of Environmental Quality, CFDA #66-
458
8. The threshold for distinguishing Types A and B programs was $300,000.
9. City of Chubbuck was considered a high-risk audited.
FINDINGS — FINANCIAL STATEMENT AUDIT
None
FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL AWARD PROGRAM AUDIT
None
E#I
DEATON & COMPANY, CHARTERED
CITY OF CHUBBUCK, IDAHO
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
FOR THE YEAR ENDED SEPTEMBER 30, 2013
FINDINGS — FINANCIAL STATEMENT AUDIT
None
FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL AWARD PROGRAM AUDIT
None
58
DEATON & COMPANY, CHARTERED