HomeMy WebLinkAbout2015CITY OF CHUBBUCK, IDAHO
AUDITED FINANCIAL STATEMENTS
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
Certified Public Accountants
CITY OF CHUBBUCK, IDAHO
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS
Page
Title Page
1
Table of Contents
2-3
Introductory Section
22
Letter of Transmittal
4-6
List of Principal Officials
7
Organizational Chart
8
Financial Section
27
Independent Auditor's Report
9-11
Management Discussion and Analysis
12-20
Statements of Net Position
21
Statements of Activities
22
Balance Sheets - Governmental Funds
23-24
Statements of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
25-26
Statements of Position - Proprietary Funds
27
Statements of Revenues, Expenses, and Changes in Net Position - Proprietary
28
Statements of Cash Flows - Proprietary Funds
29-30
Statement of Fiduciary Net Position - Recreational Program Fund
31
Statement of Changes in Fiduciary Net Position - Recreational Program Fund
32
Notes to Financial Statements
33-47
Required Supplementary Information
48
Budgetary Comparison Schedule - General Fund
49
Schedule of Employer's Share of Net Pension Liability
50
Schedule of Employer Contributions
51
Notes to Required Supplementary Information
52
CITY OF CHUBBUCK, IDAHO
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2015
TABLE OF CONTENTS - CONTINUED
Page
Other Supplementary Information 53
Combining Balance Sheet - Nonmajor Governmental Funds 54
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Nonmajor Governmental Funds 55
Budgetary Comparison Schedule - Nonmajor Governmental Funds 56
Statistical Section 57
Statistical Section - Table of Contents 58
Financial Trends 59-66
Revenue Capacity 67-70
Debt Capacity 71-73
Operating Information 74-75
Compliance Section 76
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 77-78
Schedule of Findings and Responses 79
INTRODUCTORY SECTION
10010011
I D R H D
www.cityofchubbuck.us
5160 Yellowstone, PO Box 5604
Chubbuck, ID 83202
(208) 237-2400 phone
(208) 238-2371 fax
MAYOR
Kevin England
March 25, 2016
COUNCIL MEMBERS
Josh Ellis
Ryan Lewis
Kermit G. Morrison
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 (GARS) by a firm of
licensed certified public accountants. Pursuant to those requirements, we hereby issue the comprehensive
annual financial report for the City of Chubbuck for the fiscal year ended September 30, 2015.
Management assumes full responsibility for the completeness and reliability of the information contained in
this report, based upon a comprehensive frame -work of internal control that is established for this purpose.
Because the cost of internal control should not exceed anticipated benefits, the objective is to provide
reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
Deaton & Company, Chartered, a firm of licensed certified public accountants has issued an unmodified
opinion on the City of Chubbuck's financial statements for the year ended September 30, 2015. 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 14,229) was incorporated in 1950. Chubbuck is located in the
southeastern portion of the State of Idaho.
Chubbuck has a land area of 4.19 square miles and is bordered by the City of Pocatello, with its own
population of 54,292. The City is located in Bannock County with a 2014 estimate census population of
83,347. 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 25, 2014
AOIIIP12���
Rich Morgan
City Clerk
Daniel Christensen
Finance Clerk
S9
CITY OF CHUBBUCK, IDAHO
List of Principal Officials
SEPTEMBER 30, 2015
Title Name
Elected Officials
Mayor
Kevin England
Council President
Josh Ellis
Council Member
Kermit Morrison
Council Member
Brent Marshall
Council Member
Ryan Lewis
City Officials
City Attorney
Tom Holmes
Public Works Director
Rodney Burch
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
Sollus Co.
Parks & Recreation
Bill Guinn
Fire Chief
Eric King
CITY OF CHUBBUCK
ORGANIZATION CHART
FINANCIAL SECTION
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208) 232-5825
Members of Idaho society ofCertified Public Accountants
Members of American Institute of Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and Members of the City Council
City of Chubbuck, Idaho
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Chubbuck as of and for the year ended September 30, 2015,
and the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and
perform the audit to obtain reasonable assurance about whether the financial statements are free from
material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures
in the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness
of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluating the overall presentation of the
financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information,
and the other major special revenue funds of the City of Chubbuck, as of September 30, 2015, 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.
Change in Accounting Principle
As described in Note 10, in 2015, the City adopted new accounting guidance, GASB No. 68, Accounting
and Financial Reporting for Pensions. Our opinion is not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis, budgetary comparison schedule, and other required supplemental information
on pages 12-20 and 49-52 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 combining and individual nonmajor fund financial statements, budgetary comparison schedules
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, budgetary comparison
schedules 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 2014 audited
financial statements and, in our report dated March 26, 2015, 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 24,
2016, on our consideration of the City of Chubbuck's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion on
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering City of Chubbuck's
internal control over financial reporting and compliance.
Chubbuck, Idaho
March 24, 2016
City of Chubbuck
Management's Discussion and Analysis
For the Year Ended September 30, 2015
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,
2015. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in our letter of transmittal.
Financial Highlights
• The assets and deferred outflows of the City of Chubbuck exceed its liabilities and
deferred inflows at the close of the most recent fiscal year by $39,382,716 (net
position).
• The governments net position increased by $3,926,037. Approximately 18 percent
of this increase, $700,095, is attributed to capital contributions from the Chubbuck
Development Authority.
• At the end of the current fiscal year, unassigned fund balances for the general fund
was $2,952,093 or 41 percent of total general fund expenditures.
• In the City's business -type activities, operating revenues increased by $771,678, and
operating expenses increased by $586,856. 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 overall had an increase of
$1,420,514. (Including compensated absences). Although there was a reduction of
bonds and notes payable, the increase was primarily due to the implementation of
the net pension liabilities.
• 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, deferred outflows and
liabilities with deferred inflows, with the difference between each reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of
the City's is improving or deteriorating.
The Statement of Activities presents information showing how the City's net position changed during
the fiscal year. All changes in the assets are reported when the underlying event giving rise to the
12
change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in the future fiscal periods (e.g.
uncollected taxes and earned but unused compensated absences).
Both of the government -wide financial statements distinguish functions of the City of Chubbuck that are
principally supported by taxes and intergovernmental revenues (governmental activities) from functions
that are intended to recover all or a significant portion of their costs through user fees and charges
(business -type activities). The governmental activities of the City of Chubbuck include general
government and administration, public safety, parks, and highway streets and roads. The business -type
activities of the City include water and sewer, and sanitation operations.
Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated from specific activities or objectives. The City, like other state
and local governments, uses fund accounting to ensure and demonstrate compliance with finance -
related legal requirements. All of the funds of the City of Chubbuck can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government -wide financial statements.
However, unlike the government -wide financial statements, governmental fund financial
statements focus on current sources and uses of spendable resources, as well as on balances of
spendable resources available at the end of the fiscal year. Such information may be useful in
evaluation a government's near-term financing 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 23-26 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.
13
Internal service funds are an accounting device used to accumulate and allocate costs internally
among the City of Chubbuck's various functions. The City of Chubbuck uses 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 27-30 of this report.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government -wide
financial statements because the resources of those funds are not available to support the City
of Chubbuck's own programs. The accounting used for fiduciary funds is similar to proprietary
funds.
The City of Chubbuck adopts an annual appropriated budget for its fiduciary fund. However, the
City does not provide budgetary comparison schedules for fiduciary funds.
The fiduciary fund financial statements can be found on pages 31-32 of this report.
Notes to the Financial Statements. The notes provide additional information that is essential
to a full understanding of the data provided in the government -wide and fund financial
statements. The notes to the financial statements may be found on pages 33-47 of this report.
Other information. In addition to the basic financial statements and accompanying notes, this
report also presents certain required supplementary information concerning the City's budgeted
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 $39,382,716 as of September 30,
2015.
The largest portion of the City of Chubbuck's net position is reflected in its net investment in capital
assets (e.g., land, building, equipment, improvements, work -in -process and infrastructure), less
accumulated depreciation and any debt used to acquire those assets that is still outstanding.
14
The City uses these capital assets to provide service to citizens; consequently these assets are not
available for future spending. Although the City's investment in capital assets is reported net of related
debt, it should be noted that the resources needed to repay this debt must be provided from other
sources, since the capital assets themselves cannot be used to liquidate these liabilities.
Below is a summary of the City of Chubbuck's Net Position statement.
City of Chubbuck's Net Position
Governmental Activities Business ActivitiesI Total
2015 2014 2015 2014 2015 2014 _
ASSETS
Current and other assets $ 3,883,153 $ 4,130,936 $ 35,593,792 $ 33,260,796 $ 39,476,945 $ 37,391,732
Capital assets 30,834,759 30,272,991 9,854,253 9,286,242 40,689,012 39,559,233
Total assets 34,717,912 34,403,927 45,448,045 42,547,038 80,165,957 76,950,965
DEFERRED OUTFLOWS
Pension 648,919
256,190
905,109
LIABILITIES
Long-term liabilites outstanding
19,542,587
18,590,186
18,624,421
19,031,165
38,167,008
37,621,351
Other liabilites
258,964
286,206
2,013,713
1,111,614
2,272,677
1,397,820
19,801,551
18,876,392
20,638,134
20,142,779
40,439,685
39,019,171
DEFERRED INFLOWS
Pension
895,233
-
353,432
-
1,248,665
-
NET POSITION
Net investment in captial assets
10,137,975
11,396,599
6,086,514
6,091,493
16,224,489
17,488,092
Restricted
-
165,181
167,481
165,181
167,481
Unrestricted
4,532,072
4,130,936
18,460,974
16,145,285
22,993,046
20,276,221
Total net position
14,670,047
15,527,535
24,712,669
5 22,404,259
39,382,716
37,931,794
An additional portion of the City of Chubbuck's net position $165,181, represent resources that are
subject to external restriction on how they may be used. The remaining balance of unrestricted net
position $22,993,046, may be used to meet the governments' ongoing obligation to citizens and
creditors.
As of September 30, 2015, 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, 99 percent of the liabilities are made up of noncurrent liabilities.
The increase in noncurrent liabilities is due to net pension liabilities being implemented under GASB 68.
This primarily represents notes payable and bonds discussed in note 9 pages 41-42 of the notes to
financial statements.
Governmental activities. Governmental activities' key elements are broken down in the following
charts. Government activities decreased net position by $857,488 and business -type activities increased
net position by $2,308,410.
The City of Chubbuck's direct charges to users of governmental services made up $426,891. These
charges are for park rentals, building permits and other fees related to public safety and administration.
Public safety expenditures, the largest portion in fiscal year 2015, include the fire department and police
department and accounts for $4,387,453. The second largest portion of expenditures is the building
inspection and street department which accounts for $1,697,765. General government accounts for
$542,495 in expenditures.
15
Below is summary of the City of Chubbuck's Changes in Net Position.
City of Chubbuck's Changes in Net Position
Revenue by Source - Government Activities
Othertaxe
1!
Charges for services
16
its and
916,767
Governmental Activities I
i Business Activities I
Total
2015
2014
2015
2014
2015
2014
REVENUES
Program revenues:
Charges for services
540,939
374,750
7,996,521
$ 7,243,338
$ 8,537,360
5 7,619,088
Operating grants and contributions
48,000
33,200
11,328
13,217
59,328
46,417
Capital grants and contributions
916,767
-
-
916,767
-
General revenue:
Property taxes and sales tax
5,296,480
5,292,450
5,296,480
5,292,450
Othertaxes
1,220,159
1,173,091
1,220,159
1,173,091
Other
136,693
86,171
2,630
574
139,323
86,745
Capital Contributions
1,286,887
-
-
1,286,887
CIAWWC Authority
228,000
-
228,000
Transfers In (out)
-
(3,000)
-
3,000
-
-
Total Revenues
8,158,938
9,471,549
8,010,479
7,260,129
16,169,417
15,731.678
EXPENSES
General government
542,495
443,813
-
542,495
443,813
Public safety
4,387,453
4,106,243
4,387,453
4,I06.243
Building inspection and street
1,697,764
1,623,404
1,697,764
1,623,404
Parks and recreation
529,372
484,041
529,372
484,041
Health, welfare, and other
41,171
51,515
41,171
51.515
Water
-
1,781,501
1,560,406
1,781,501
1,560,406
Sewer
2,200,476
1,709,310
2,200,476
1,709,310
Sanitation
1,060,218
1,219,283
1,060,218
1,219,283
CiAWWC Authority
2,930
2,930
-
-
2,930
2,930
Totalexpenses
7,201,185
6,711,946
5,042,195
4,488,999
12,243,380
11,200,945
NET CHANGE IN NET POSITION
957,753
1,759,603
2,968,2154
2,771,130
3,926,037
4,530.733
NET POSITION beginning
13,829,609
13,745,716
21,744,385
19,633,129
35,573,994
33,378,845
Prior Period Adjustment
(117,315)
22,216
-
(117,315)
22,216
NET POSITION ending
_514,670,047
$ 15,527,535
$ 24,712,669
$22,404,259
$39,382,716
$ 37,93i,794
Revenue by Source - Government Activities
Othertaxe
1!
Charges for services
16
its and
916,767
Expenses and Program Revenues — Governmental Activities
5,000,000
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
in Expenses
Revenue
`0 ,IZ #0
w
pro
QG'0� aca e�s'atQ ��
• The majority of the City of Chubbuck's governmental activities' revenue is received from
property and sales tax (56 percent). This amount would be 60 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 92 percent of the budget or 82 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 2015. 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.
17
Business -type activities. Businesses -type activities' key elements are broken down in
the following charts.
Revenue by Source - Business Type Activities
Other 0.00032832I Operating grants and
contributions,
0.001414148
Expenses and Program Revenues - Business Type Activities
$4,000,000
$3,500,000
$3,000,000
$2,500,000
$2,000,000
$1,500,000
$1,000,000
$500,000
11
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 (99 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 (1 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.
18
Financial Analysis of the Government's Funds
As noted earlier, the City of Chubbuck uses fund accounting to ensure and demonstrate compliance with
finance -related legal requirements.
Governmental funds. The focus of the City of Chubbuck's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such information is
useful in assessing the City of Chubbuck's financing requirements. In particular, unreserved fund balance
may serve as a useful measure of the government's net resources available for spending at the end of
the fiscal year.
At the end of the current fiscal year the City of Chubbuck's governmental funds reported combined
ending fund balances of $3,506,268. Of which $2,952,093 of this total is unassigned fund balance (84
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 $18,272 for fiscal year 2015. As a measure of liquidity, it may be useful to compare both
unassigned fund balance and total fund expenditures. Unassigned fund balance represents 41 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: $6,122,013, Sewer:
$25,620,963, and Sanitation: $2,543,121. The water funds had an increase in net position of $910,747;
the sewer fund had an increase in net position of $1,386,015; and the sanitation fund had an increase in
net position of $682,940.
General Fund Budgetary Highlights
The City made no revisions to the original appropriations approved by the City Council. Actual revenues
were more than budget, and expenses were less than budget. The difference accounts for a $18,272
increase in the general fund balance. The major variance in expenditures was due to a decrease in the
General, Law enforcement, and Parks and recreation expenditures.
Capital Asset and Debt Administration
Capital assets. The City of Chubbuck's investment in capital assets for its governmental and business -
type activities as of September 30, 2015 amounts to $39,559,233 (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 $1,380,708. The increase in assets includes contributions from the Chubbuck Development
Authority of $700,095 and the CIAWWC Authority's capital assets blended into governmental activities
in the amount of $8750.
19
City of Chubbuck's Capital Assets
Additional information on the City of Chubbuck's capital assets can be found in note 8 on page 40 of this
report.
Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total debt outstanding
of $38,167,008. Of this amount, $16,363,232 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
$1,453,554 used for purchasing water shares.
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 has no general obligation
debt. The limit totaled $14,092,571on September 30, 2015. Therefore $14,092,571 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 41-42 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.
20
Governmental Activities
Business Activities
Total
2015
2014
2015
2014
2015
2014
Land
$ 266,080
$ 266,080
$ 616,672
$ 495,573
$ 882,752
$ 761,653
Building & Imp.
3,792,356
3,367,334
6,356,428
6,115,456
10,148,784
9,482,790
Machinery & Equip.
4,116,471
3,999,097
7,588,170
6,712,272
11,704,641
10,711,369
Infrastructure
8,405,865
3,148,718
-
8,405,865
3,148,718
Work in Progress
831,331
5,789,495
831,331
5,789,495
CIAWWCA-WIP
18,569,419
18,560,669
-
-
18,569,419
18,560,669
Office Equipment
-
51,625
51,625
51,625
51,625
Water Rights
2,421,167
2,421,167
2,421,167
2,421,167
Total
$35,981,522
$35,131,393
$17,034,062
$15�
$53,015,584
$50,927,486
Additional information on the City of Chubbuck's capital assets can be found in note 8 on page 40 of this
report.
Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total debt outstanding
of $38,167,008. Of this amount, $16,363,232 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
$1,453,554 used for purchasing water shares.
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 has no general obligation
debt. The limit totaled $14,092,571on September 30, 2015. Therefore $14,092,571 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 41-42 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.
20
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
DEFERRED OUTFLOWS
Pension
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
SEPTEMBER 30, 2015
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
Water deposits
Noncurrent liabilities
Bonds payable
Note payable
Accrued compensated absences
Net pension liabilities
Advance payable
DEFERRED INFLOWS
Pension
NET POSITION
Net investment in capital assets
Restricted for bond service
Unrestricted
Governmental Business -type
Activities Activities
Total
Development
Authority
$ 3,285,213 $ 16,543,701 $ 19,828,914 $ 3,141,045
319,439
- 319,439 88,694
275,919
- 275,919 -
2,582
706,674 709,256 -
3,883,153
17,250,375 21,133,528 3,229,739
165,181
287,868
- 17, 890, 368
35,981,522 17,034,061
(5,146,763) (7,179,808)
30,834,759 28,197,670
34,717,912
648,919
45,448,045
256,190
165,181 -
287,868 -
17, 890, 368 -
53,015,583 -
(12,326,571) -
59, 032,429 -
80,165,957 3,229,739
905,109 -
88,290
397,570
485,860
348,277
101,986
35,937
137,923
-
-
4,554
4,554
-
68,688
26,934
95,622
-
-
122,355
122,355
-
-
1,138,495
1,138,495
-
-
287,868
287,868
-
258,964
2,013,713
2,272,677
348,277
-
1,453,554
1,453,554
-
-
16,519,321
16,519,321
-
274,752
107,732
382,484
-
1,377,467
543,814
1,921,281
17,890,368
-
17,890,368
-
19, 542, 587
18,624,421
38,167, 008
-
19,801,551
20,638,134
40,439,685
348,277
895,233
353,432
1,248,665
-
10,137,975
6,086,514
16,224,489
-
-
165,181
165,181
-
4,532,072
18,460,974
22,993,046
2,881,462
$ 14,670,047 $ 24,712,669 $ 39,382,716 $ 2,881,462
21
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Net (expense)/revenue
General revenues
General property taxes and sales tax
Franchise fees
State sales and liquor taxes
Highway user's and road and bridge - restricted
Interest income
Gain from sale of assets
Other revenue
NET CHANGE IN NET POSITION
BEGINNING NET POSITION (Restated - see note - 14)
PRIOR PERIOD ADJUSTMENT
ENDING NET POSITION
22
$ (5,695,580) $ 2,965,654 $ (2,729,926) $ (1,301,696)
5,296,480
-
5,296,480
Program Revenues
Total
-
198,493
-
414,411
Operating
Capital
Net
607,255
-
607,255
Charges for
Grants and
Grants and
(Expense)
Development
18,038
Expenses
Services
Contributions
Contributions
Revenue
Authority
Functions/Programs
6,653,333
2,630
6,655,963
2,248,042
957,753
2,968,284
Primary Government:
946,346
13,829,609
21,744,385
35,573,994
1,935,116
Governmental activities:
General government
$ 542,495
$ 298,505
$ -
$ -
$ (243,990)
$ -
Law enforcement
2,868,345
35,311
10,000
-
(2,823,034)
-
Fire control
1,519,108
197,261
-
-
(1,321,847)
-
Building inspection
172,946
-
-
-
(172,946)
-
Street
1,524,819
-
-
688,767
(836,052)
-
Parks and recreation
529,372
9,762
-
-
(519,610)
-
Health and welfare
41,171
-
-
-
(41,171)
-
Other special revenue funds
-
-
38,000
-
38,000
-
CIAWWC Authority
2,930
-
-
228,000
225,070
-
7,201,186
540,839
48,000
916,767
(5,695,580)
Business -type activities
Water
1,781,501
2,680,920
11,328
-
910,747
Sewer
2,200,476
3,583,861
-
-
1,383,385
Sanitation
1,060,218
1,731,740
-
-
671,522
-
5,042,195
7,996,521
11,328
-
2,965,654
-
Total primary government
$12,243,381
$ 8,537,360
$ 59,328
$ 916,767
$ (2,729,926)
$ -
Component Unit:
Chubbuck Development Authority
$ 1,301,696
$ (1,301,696)
$ 1,301,696
$ (1,301,696}
General
Business -type
Development
Activities
Activities
Total
Authority
Net (expense)/revenue
General revenues
General property taxes and sales tax
Franchise fees
State sales and liquor taxes
Highway user's and road and bridge - restricted
Interest income
Gain from sale of assets
Other revenue
NET CHANGE IN NET POSITION
BEGINNING NET POSITION (Restated - see note - 14)
PRIOR PERIOD ADJUSTMENT
ENDING NET POSITION
22
$ (5,695,580) $ 2,965,654 $ (2,729,926) $ (1,301,696)
5,296,480
-
5,296,480
2,221,381
198,493
-
198,493
-
414,411
-
414,411
-
607,255
-
607,255
76,828
-
76,828
26,661
18,038
2,530
20,568
-
41,828
100
41,928
-
6,653,333
2,630
6,655,963
2,248,042
957,753
2,968,284
3,926,037
946,346
13,829,609
21,744,385
35,573,994
1,935,116
(117,315) - (117,315) -
$14,670,047 $ 24,712,669 $ 39,382,716 $ 2,881,462
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2014
23
See accompanying notes to financial statements
CIAWWC
Other
General
Authority Governmental
Fund
Fund
Funds
Total
2014
ASSETS
Cash
$ 2,731,038
$ - $
554,175 $
3,285,213
$
3,298,459
Accounts receivable
2,582
-
-
2,582
230,515
Property and sales taxes receivable
319,439
-
-
319,439
351,707
Intergovernmental receivables
275,919
-
-
275,919
250,255
$ 3,328,978
$ - $
554,175 $
3,883,153
$
4,130,936
LIABILITIES
Accounts payable
$ 88,290
$ - $
- $
88,290
$
136,040
Accrued payroll
101,986
-
-
101,986
86,292
Accrued compensated absences
68,688
-
-
68,688
63,874
258,964
-
-
258,964
286,206
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - taxes
117,921
-
-
117,921
171,213
Unavailable revenues - other
-
-
-
-
228,000
117,921
-
-
117,921
399,213
FUND BALANCES
Committed
-
-
554,175
554,175
511,697
Unassigned
2,952,093
-
-
2,952,093
2,933,821
2,952,093
-
554,175
3,506,268
3,445,518
$ 3,328,978
$ - $
554,175
$
4,130,937
23
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2014
Total fund balances - total governmental funds $ 3,506,268 $ 3,445,518
Amounts reported for governmental activities in the Statement of Net Position
are different because:
Capital assets used in governmental activities are not financial resources and therefore
are not reported in the funds, net of accumulated depreciation of $5,146,763. 30,834,759 30,272,991
Unavailable revenue represents amounts that were not available to fund current
expenditures and therefore are not reported in the funds:
Property tax 117,921 171,213
Grant revenue - 228,000
Deferred outflows and inflows of resources related to pensions are applicable to
future periods and, therefore, are not reported in the fund:
Deferred outflows of resources related to pensions of $648,919 = $557,131
deferred outflows of resources pension expense (from Pension schedule) +
$91,788 deferred employer contributions related to pensions outflow.
648,919
Deferred inflows of resources related to pensions (from pension schedule) (895,233)
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds:
Accrued compensated absences (274,752) (255,498)
Net pension liability (1,377,467)
Advance payable (17,890,368) (18,334,688)
Net position of governmental funds $ 14,670,047 15,527,536
24
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
REVENUES
General property taxes and sales tax
Franchise fees
State sales and liquor taxes
Highway user's and road and bridge taxes
Court revenue
Parks revenue
Licenses, permits and fines
Grants
Fire protection and prevention
Leases and rents
Interest income
Donations
Charges for services
Other revenues
EXPENDITURES
General government
Law enforcement
Fire control
Building inspection
Street
Parks and recreation
Health and welfare
Court fund
Capital outlays
CIAWWC Authority
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds from note payable
Proceeds from sale of assets
Transfers in (out)
NET CHANGE IN FUND BALANCES
BEGINNING FUND BALANCE
ENDING FUND BALANCE
`�7
See accompanying notes to financial statements
(Continued)
CIAWWC
Other
General
Authority
Governmental
Fund
Fund
Funds
Total
2014
$ 5,349,772
$ -
$ -
$ 5,349,772
$ 5,295,493
198,493
-
-
198,493
203,790
414,411
-
-
414,411
338,710
607,255
-
-
607,255
533,623
35,311
-
-
35,311
30,816
5,402
-
-
5,402
2,668
219,868
-
-
219,868
134,555
10,000
456,000
-
466,000
14,800
197,261
-
-
197,261
232,992
78,637
-
-
78,637
66,152
76,828
-
-
76,828
60,651
-
-
38,000
38,000
18,400
4,360
-
-
4,360
4,535
37,349
-
4,478
41,827
14,366
7,234,947
456,000
42,478
7,733,425
6,951,551
483,135
-
-
483,135
393,539
2,843,478
-
-
2,843,478
2,695,807
1,431,180
-
-
1,431,180
1,389,030
174,432
-
-
174,432
172,439
1,365,190
-
-
1,365,190
1,356,339
498,932
-
-
498,932
442,246
41,171
-
-
41,171
51,165
-
-
-
-
350
400,310
8,750
-
409,060
365,442
-
458,930
-
458,930
2,930
7,237,828
467,680
-
7,705,508
6,869,287
(2,881)
(11,680)
42,478
27,917
82,264
-
11,680
-
11,680
155,468
21,153
-
-
21,153
11,154
-
-
-
-
(3,000)
21,153
11,680
-
32,833
163,622
18,272
-
42,478
60,750
245,886
2,933,821
-
511,697
3,445,518
3,199,632
$ 2,952,093
$ -
$ 554,175
$ 3,506,268
$ 3,445,518
`�7
See accompanying notes to financial statements
(Continued)
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Reconciliation of the change in fund balances - total governmental funds
to the change in net position of governmental activities:
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the Statement of Activities are different
because:
Governmental funds report capital outlays as expenditures while governmental activities
report depreciation expense to allocate those expenditures over the life of the assets. Capital
asset contributions from other entities are not recognized as a revenue for governmental
purposes, but are required to be recognized on the Statement of Activities:
Contributed capital assets
Capital asset purchases capitalized
Depreciation expense
The net affect of sales transactions involving capital assets
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 position. 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
Governmental funds report district pension contributions as expenditures.
However, in the Statement of Activities, the cost of pension benefits earned
net of employee contributions is reported as pension expense.
Pension expense in excess of contributions
Change in net position
26
See accompanying notes to financial statements
2015
Total
60,750
688,767
409,060
(415,628)
(3,115)
(281, 292)
444,320
(19,254)
74,145
$ 957,753
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2014
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise activities. 14,360
$ 24,712,669
27
See accompanying notes to financial statements
Internal internal
Service Service
ASSETS
Water
Sewer
Sanitation
Total
2014
Funds 2015 Funds 2014
Current assets
Cash and cash equivalents
$ 6,116,428
$ 7,935,682
$2,491,591
$16,543,701
$ 13,866,171
$ - $ -
Accounts receivable
262,725
298,717
145,232
706,674
648,651
-
6,379,153
8,234,399
2,636,823
17,250,375
14,514,822
- -
Noncurrent assets
Restricted assets
Bond reserves
165,181
-
-
165,181
167,481
- -
Utility deposits
284,163
3,680
25
287,868
243,805
- -
Advance to joint venture
-
17,890,368
-
17,890,368
18,334,688
- -
Capital assets
8,920,896
4,621,708
3,231,814
16,774,418
15,796,093
259,643 259,643
Accumulated depreciation
(2,324,917)
(3,212,506)
(1,402,807)
(6,940,230)
(6,540,981)
(239,578) (228,513)
7,045,323
19,303,250
1,829,032
28,177,605
28,001,086
20,065 31,130
13,424,476
27,537,649
4,465,855
45,427,980
42,515,908
20,065 31,130
DEFERRED OUTFLOWS
Pension
120,586
95,145
40,459
256,190
-
- -
LIABILITIES
Current Liabilities
Accounts payable
44,213
323,248
24,404
391,865
90,800
5,705 5,352
Payroll payable
16,772
12,964
6,201
35,937
32,453
- -
Accrued compensated absences
12,155
12,155
2,624
26,934
26,735
Current portion of bonds payable
122,355
-
-
122,355
122,355
Accrued interest
-
-
4,554
4,554
5,382
Current portion of long-term debt
17,723
1,065,302
55,470
1,138,495
584,732
Water/ Sewer deposits
284,163
3,680
25
287,868
243,805
497,381
1,417,349
93,278
2,008,008
1,106,262
5,705 5,352
Noncurrent Liabilities
Revenue bonds payable,
net unamortized premium
1,453,554
-
-
1,453,554
1,575,909
- -
Note payable
200,034
15,297,930
1,021,357
16,519,321
17,348,315
Compensated absences
48,618
48,618
10,496
107,732
106,941
Net pension liabilities
255,968
201,964
85,882
543,814
-
-
1,958,174
15,548,512
1,117,735
18,624,421
19,031,165
-
2,455,555
16,965,861
1,211,013
20,632,429
20,137,427
5,705 5,352
DEFERRED INFLOWS
Pension
166,357
131,259
55,816
353,432
-
- -
NET POSITION
Net investment in capital assets
4,802,313
343,900
752,180
5,898,393
7,322,015
20,065 31,130
Restricted for bond service
165,181
-
-
165,181
167,481
- -
Unrestricted
5,955,656
10,191,774
2,487,305
18,634,735
14,888,985
(5,705) (5,352)
$ 10,923,150
$10,535,674
$3,239,485
24,698,309
$22,378,481
$ 14,360 $ 25,778
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise activities. 14,360
$ 24,712,669
27
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
BEGINNING NET POSITION
Restated - see note - 14
ENDING NET POSITION
10,012,403 9,149,659 2,556,545
$ 10,923,150 $ 10,535,674 $ 3,239,485
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds
Change in net position of business -type activities
28
(11,418)
$ 2,968,284
See accompanying notes to financial statements
19,592,552 25,778 40,577
$ 22,378,481 $ 14,360 $ 25,778
Internal
Internal
Service
Service
Water
Sewer
Sanitation
Total
2014
Funds 2015
Funds 2014
OPERATING REVENUES
Service revenue
$ 1,105,011
$ 3,583,861
$ 1,664,979
$ 6,353,851
$ 5,459,818
$ 66,761
$ 85,168
Revenue used as security
for revenue bond:
Charges for services
1,575,909
-
-
1,575,909
1,698,264
-
88
2,680,920
3,583,861
1,664,979
7,929,760
7,158,082
66,761
85,256
OPERATING EXPENSES
Salaries and wages
575,158
444,090
236,190
1,255,438
1,217,658
-
-
Personnel benefits
253,273
191,931
94,567
539,771
533,012
6,475
5,932
Repairs and maintenance
382,556
297,130
302,820
982,506
637,123
8,770
30,721
Supplies and tools
49,333
16,615
71,914
137,862
138,657
8,940
6,082
Travel, meetings, and training
6,122
2,026
921
9,069
14,075
1,405
4,026
Fuels and lubricants
14,094
3,623
39,496
57,213
87,566
26,586
28,676
Telephone and communications
4,068
3,223
3,223
10,514
8,672
-
-
Utilities
159,901
32,963
3,571
196,435
200,048
14,938
13,553
Treatment -Pocatello
-
1,070,411
-
1,070,411
826,513
-
-
Insurance
-
-
-
-
-
Other purchased services
17,756
332
18,088
15,699
Professional services
68,225
67,333
14,604
150,162
74,969
Facilities plan
-
-
-
-
-
Bad debt
2,336
4,113
1,903
8,352
7,699
-
-
Depreciation
195,816
67,018
149,816
412,650
499,924
11,065
11,065
1,728,638
2,200,476
919,357
4,848,471
4,261,615
78,179
100,055
OPERATING INCOME
952,282
1,383,385
745,622
3,081,289
2,896,467
(11,418)
(14,799)
NONOPERATING REVENUE (EXPENSE)
Interest income
-
-
-
-
574
Interest expense
(52,863)
-
(62,682)
(115,545)
(127,229)
SW Pocatello Treatment Cap Fee
100
100
Miscellaneous expense
-
-
(100)
Gain (Loss) from asset disposal
2,530
2,530
-
Transfers in (out)
3,000
(52,863)
2,630
(62,682)
(112,915)
(123,755)
CAPITAL CONTRIBUTIONS
Developer contributions
11,328
11,328
13,217
11,328
11,328
13,217
CHANGES IN NET POSITION
910,747
1,386,015
682,940
2,979,702
2,785,929
(11,418)
(14,799)
BEGINNING NET POSITION
Restated - see note - 14
ENDING NET POSITION
10,012,403 9,149,659 2,556,545
$ 10,923,150 $ 10,535,674 $ 3,239,485
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds
Change in net position of business -type activities
28
(11,418)
$ 2,968,284
See accompanying notes to financial statements
19,592,552 25,778 40,577
$ 22,378,481 $ 14,360 $ 25,778
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
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
Advance to joint venture
Change in restricted cash
Net cash (used) in noncapital financing activities
CASH FLOW FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal paid on capital debt
Interest paid on capital debt
Gain from asset disposals
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
ENDING CASH AND CASH EQUIVALENTS
29
See accompanying notes to financial statements
Internal
Internal
Service
Service
Water
Sewer
Sanitation
Total
2014
Funds 2015
Funds 2014
$2,635,134
$3,562,441
$1,665,910
$ 7,863,485
$ 7,219,510
$ 66,761
$ 85,256
(691,993)
(1,210,715)
(428,487)
(2,331,195)
(2,078,647)
(60,286)
(79,324)
(834,587)
(640,615)
(334,351)
(1,809,553)
(1,718,877)
(6,475)
(5,932)
1,108,554
1,711,111
903,072
3,722,737
3,421,986
-
-
-
-
-
-
3,000
-
-
-
444,320
-
444,320
(155,468)
-
-
2,300
-
-
2,300
(1,700)
-
-
2,300
444,320
-
446,620
(154,168)
-
-
(139,431)
(73,330)
(184,825)
(397,586)
(695,130)
-
-
(52,863)
-
(63,510)
(116,373)
(127,611)
-
-
-
2,530
-
2,530
-
(225,189)
(498,888)
(256,320)
(980,397)
(869,905)
-
-
(417,483)
(569,688)
(504,655)
(1,491,826)
(1,692,646)
-
-
-
-
-
-
574
-
-
-
-
-
-
574
-
-
693,371
1,585,743
398,417
2,677,531
1,575,746
-
-
5,423,057
6,349,939
2,093,174
13,866,170
12,290,425
-
-
$6,116,428
$7,935,682
$2,491,591
$16,543,701
$ 13,866,171
$
29
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
RECONCILIATIONS OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
30
See accompanying notes to financial statements
Internal
Internal
Service
Services
Water
Sewer
Sanitation
Total
2014
Funds 2015
Funds 2014
OPERATING INCOME
$ 952,282
$1,383,385
$ 745,622
$ 3,081,289
$ 2,896,467
$ (11,418)
$ (14,799)
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation
195,816
67,018
149,816
412,650
499,924
11,065
11,065
Pension expense
(7,404)
(5,235)
(6,179)
(18,818)
-
-
-
Bad debt expense
2,336
4,113
1,903
8,352
7,699
-
-
(Increase) decrease in assets
Accounts receivable
(45,786)
(21,420)
931
(66,275)
61,428
-
-
Increase (decrease) in liabilities
Accounts payable
10,062
282,609
8,394
301,065
(75,325)
353
3,734
Payroll payable
2,601
1,994
(1,111)
3,484
7,372
-
-
Accrued compensated absences
(1,353)
(1,353)
3,696
990
24,421
-
-
Total adjustments
156,272
327,726
157,450
641,448
525,519
11,418
14,799
NET CASH PROVIDED BY OPERATING ACTIVITIES
$1,108,554
$1,711,111
$ 903,072
$ 3,722,737
$ 3,421,986
$ -
$ -
30
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF FIDUCIARY NET POSITION
RECREATIONAL PROGRAMS FUND
SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2014
Assets
Cash
Liabilities
Accounts payable
Net Position
Held in trust for recreation programs
31
Recreation
Programs
Trust Fund
2015
$ 61,506
61,506
$ 61,506
See accompanying notes to financial statements
2014
$ 51,664
51,664
$ 51,664
CITY OF CHUBBUCK, IDAHO
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
RECREATIONAL PROGRAMS FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2015
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2014
Additions
Contributions:
Registration fees
Sponsorships
Deductions
Director's compensation
Boy's baseball
Girl's softball
Tee/tiger ball
Change in net position
Net position - beginning of the year
Net position - end of the year
32
Recreation
Programs
Trust Fund
2015
$ 65,855
16,381
82,236
4,500
35,723
20,102
12,069
72,394
9,842
51,664
$ 61,506
See accompanying notes to financial statements
2014
$ 57,795
11,220
69,015
4,500
23,293
19,055
6,971
53,819
15,196
36,468
$ 51,664
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 15)
NOTE 1 - Summaryof 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 71.
A. Reporting Entity
The City's financial reporting entity comprises the following:
Primary Government
In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, "The Financial
Reporting Entity". Currently, the City reports two component unit; the Chubbuck Development Authority and the Chubbuck
Impact Area Waste Water Authority.
Discretely Presented Component Units
Chubbuck Development Authority (CDA)
One component unit reported in the combined financial statements represents the financial balances and transactions of the
Chubbuck Development Authority (CDA). CDA is a legally separate entity incorporated under the State of Idaho's urban renewal
laws. CDA works with the City to develop blighted areas within the City using tax increment financing to fund projects. These
projects could include providing infrastructures, purchasing land and demolishing blighted structures or rehabilitating structures
to provide for low income housing, among others. All non -private projects are donated to the City of Chubbuck.
The Board of Commissioners of the Authority consists of 7-9 members, which are appointed by the Mayor.
Complete financial statements of the Authority can be obtained from the Treasury, City of Chubbuck, 5160 Yellowstone Ave,
Chubbuck, Idaho 83202.
Blend 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 $17,890,368. The City of Chubbuck has all rights and obligations of assets and liabilities
within the Authority.
Upon termination of this Agreement, title to all buildings, improvements, facilities, equipment and personal property held by the
Authority shall 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.
33
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 15)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
B. Basis of Presentation
Government -wide Statements
The Statement of Net Position 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.
Fund 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 expenditure/expenses. 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 governmental fund or enterprise fund are at
least 5 percent of the corresponding total for all governmental and enterprise funds combined.
Governmental Funds
General Fund
The General Fund is the general operating fund of the City and is always classified as a major fund. All financial resources,
except those required to be accounted for in another fund, are accounted for in the General Fund.
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to
expenditures for specific purposes.
Proprietary Funds
Enterprise Funds
Enterprise funds are used to account for business -like activities provided to the general public. These activities are financed
primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private
sector. The reporting entity includes the water, sewer and sanitation funds.
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 Position and the Statement of Activities, both governmental and business -like
activities are presented using the economic resources measurement focus as defined in item b. below.
34
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 15)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
C. Measurement Focus and Basis of Accounting (Continued)
In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement
focus is used as appropriate:
a. All governmental 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 position (or cost recovery), financial position, and cash
flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund
equity is classified as net position.
Basis of Accounting
In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -like activities are
presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned
and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets,
and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this
modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing
or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after
year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general
obligation bond principal and interest which are reported when due.
All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized
when earned and expenses are recorded when the liability is incurred or economic asset used.
The effect of interfund activity has been eliminated from the government -wide financial statements.
D. Budgets and Encumbrances
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are
adopted for the general 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 Position, "cash and cash equivalents" includes all demand, savings accounts,
certificates of deposits, and state investing pools of the City. For the purpose of the proprietary fund Statement of Cash Flows,
"cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with
an original maturity of three months or less.
F. 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.
35
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 15)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
F. Property, Plant, and Equipment (Continued)
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.
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 Position. Depreciation is provided over the assets' estimated useful lives using the
straight-line method of depreciation. The range of estimated useful lives by type of asset is as follows:
Buildings
Other structures
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.
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.
kil
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 15)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
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 position and displayed in three components:
a. Net investment in capital assets - Consists of capital assets including capital assets, net of accumulated depreciation and
reduced by the outstanding balances of any bonds, mortgages notes, or other borrowings that are attributable to the
acquisition, construction, or improvement of these assets.
b. Restricted - Consists of assets with constraints placed on the use either by (1) external groups such as creditors, grantors,
contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling
legislation.
c. Unrestricted - All other assets that do not meet the definition of "restricted" or "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.
It is the City's policy to use unrestricted fund balances in the following order: (1) Committed, (2) Assigned, (3) Unassigned.
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.
37
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 15)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
M. Pensions
For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the
Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiduciary net
position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit payments
(including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value.
NOTE 2 - Legal Compliance - Budgets
Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the City Council a
proposed operating budget for the fiscal year commencing the following October 1. The budget is prepared by fund at the
function level and includes information on the past year, current year estimates and requested appropriations for the next fiscal
year.
The City Council holds public hearings and may add to, subtract from, or change appropriations, but may not change the form of
the budget. Any changes in the budget must be within the revenues and reserves estimated as available to the City or the
revenue estimates must be changed by an affirmative vote of a majority of the City Council. After public hearings and before the
end of the fiscal year, the City Council formally adopts the budget.
Budgetary control is exercised by function at the fund level. The City Manager is authorized to transfer budgeted appropriations
within individual funds, but cannot alter the appropriations on a fund level without City Council approval. Expenditures may not
legally exceed budgeted appropriations at the fund level. During the year, several supplementary appropriations may be
necessary.
NOTE 3 - Restricted Assets and Payable from Restricted Assets
Assets have been set aside for special items and are restricted for that purpose. Restricted resources are used only after the
unrestricted resources are depleted. To date cash has been restricted for the following items:
Proprietary
Bond reserves
Utility deposits
Tota I
$ 165,181
287,868
$ 453,049
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 $287,868 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, $319,439 in outstanding property taxes were expected to be
collected and remitted by the County.
38
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 15)
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 $ 453,049
Unrestricted 19,828,914
$ 20,281,963
Fiduciary Fund:
Cash $ 61,506
$ 61,506
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 $20,343,469 and
the bank balance was $16,896,358. 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 $3,325,442.
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
$ 3,141,045
Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not
be returned to it. At year-end the carrying amount and bank balance of CDA's deposits (cash and certificates of deposit) was
$3,141,045. At year-end, all the Authority's deposits were held in the LGIP. Deposits in the LGIP are not insured or guaranteed
by the Federal Deposit Insurance Corporation, the State of Idaho or any other government agency. CDA's deposits in the bank at
year-end were subject to custodial credit risk.
The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The
reported value of the pools is the same as the fair value of the pool shares.
Investments - The CDA has no investments
Component Unit - Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA):
Deposits and Investments -The CIAWWCA has no deposits or investments.
Deposits at year end consist of the following:
Deposits
Cash in bank - carrying amount
Unrestricted
Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not
be returned to it. At year-end the carrying amount and bank balance of CIAWWCA's deposits (cash and certificates of deposit)
was $0. At year-end, all the Authority's deposits were held in a financial institution. All deposits were guaranteed by the Federal
Deposit Insurance Corporation and were not subject to custodial credit risk.
39
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 15)
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
Allowance for Doubtful Accounts (43,886) (40,208) (27,099) (111,193)
$ 262,725 $ 298,717 $ 145,232 $ 706,674
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.
NOTE 8 - Changes in Fixed Assets
A summary of general fixed assets at year end is as follows:
Beginning
Ending
Balance
Additions
Deletions
Balance
Nondepreciable assets
Land
$ 266,080
$ -
$ -
$ 266,080
Work in process
5,789,495
354,710
5,312,874
831,331
Infrastructures
3,148,718
5,257,147
-
8,405,865
Buildings and Improvements
3,383,989
532,083
123,716
3,792,356
Vehicles and Equipment
3,982,442
258,727
124,698
4,116,471
CIAWWCA: Work in process
18,560,669
-
18,560,669
-
Land
386,226
386,226
Infrastructure
18,183,193
18,183,193
35,131,393
24,972,086
24,121,957
35,981,522
Accumulated Depreciation
4,858,402
415,628
127,267
5,146,763
$ 30,272,991
$ 24,556,458
$ 23,994,690
$ 30,834,759
A summary of proprietary type fixed assets at year end is as follows:
Beginning
Ending
Balance
Additions
Deletions
Balance
Nondepreciable assets
Land
$ 495,573
$ 121,099
$ -
$ 616,672
Water Rights
2,421,167
-
-
2,421,167
Office Equipment
51,625
-
-
51,625
Buildings and Improvements
6,342,456
13,972
-
6,356,428
Vehicles and Equipment
6,744,915
856,655
13,400
7,588,170
16,055,736
991,726
13,400
17,034,061
Accumulated Depreciation
6,769,494
423,714
13,400
7,179,808
9,286,242
$ 568,012
$ -
$ 9,854,253
40
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 15)
NOTE 9 - Long-term Debt and Accrued Compensation
Accrued Compensated Absences:
Current portion
Noncurrent portion
Lonq-term Debt:
Governmental Business -type
$ 68,688 $ 26,934
274,752 107.732
_L___a43,440 $ 134.666
The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be
repaid from business -type activities.
Governmental Activities:
As of year end, the governmental fund had no long-term debt.
Business -type activities:
In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ)
with an interest rate of 3.25% and semi-annual payments of $12,332 for 20 years.
Current portion
Noncurrent portion
$ 17,723
200,034
$ 217,757
At year-end the City was authorized, on a line -of -credit, to borrowed $17,569,518 from the Department of Environmental Quality
(DEQ) under four (4) separate loans. The four (4) loans have zero percent interest rate and are required to be paid in biannual
installments over 20 years at the close of the loan. At year-end all four loans were closed. The notes were used to finance the
designing and constructing of the Chubbuck Northwest Sewer Interceptor. The notes could be used to finance services to
provide environmental field studies, public involvement, and agency permit applications. If funds allow, it could include the
purchase of needed right-of-way for construction of the sewer system.
DEQ line of credit at zero percent interest, with biannual payment of $5,499 for 20 years, and a
maturity date of November 1, 2030. Loan closed April 22, 2010.
DEQ line of credit at zero percent interest, with biannual payment of $204,750 for 20 years, and
a maturity date of April 27, 2035. Loan closed March 5, 2015.
DEQ line of credit at zero percent interest, with biannual payment of $212,757 for 20 years, and
a maturity date of May 17, 2033. Loan closed April 9, 2013.
DEQ line of credit at zero percent interest, with biannual payment of $3266 for 20 years, and a
maturity date of April 27, 2035. Loan closed January 31, 2011.
Less current portion
Noncurrent portion
Outstanding
$ 170,581
8,190,008
7,872,013
130,630
$ 16,363,232
1,065, 302
$ 15,297,930
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
41
Net Premium Principal Total
$ 80,909 $ 1,495,000 $ 1,575,909
80,909 1,495,000 1,575,909
7,355 115,000 122,355
$ 73,554 $ 1,380,000 $ 1,453,554
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 15)
NOTE 9 - Lonct-term Debt and Accrued Compensation (Continued)
Bond premiums, net amortization totaled $80,909. The bond premium and expenses are amortized over fifteen (15) years, the
life of the bond. Bond premium amortization is $7,355 for the year.
Notes Payable
On June 4, 2008, the City issued three notes to purchase assets needed in order to collect sanitation for the City. Notes one and
two were issued at 5.50% and the third note at 5.25%. The third note was refinanced in 2009. The notes were issued for
$936,576, $541,537 and $1,375,000 with monthly payments of $17,890, $6,985, and $9,321, respectively until the maturity date
of May 5, 2013, 2016 and 2029, respectively. Note 1 was paid in it's entirety on May 6, 2013. Note 2 was prematurely paid off
on June 25, 2015.
Notes Payable: Balance
Note 1 $
Note 2 -
Note 3 1.076,827
1,076,827
Less current portion 55,470
Noncurrent portion $ 1,021,357
Annual Debt Service Requirements for leases, bonds and notes payable
Year Ending
September 30
2016
2017
2018
2019
2020
2021-2025
2026-2030
2031-2035
Changes in long-term liabilities
Long-term liability activity for the year was as follows:
Governmental Activities Business -type
Activities
Principal Interest Principal
Interest
$ - $ - $ 1,060,865
$ 109,536
- - 1,069,182
102,314
- - 1,078,144
94,752
- - 1,082,307
87,308
- - 1,091,679
79,186
- - 5,599,523
259,366
- - 4,758,936
27,450
- - 3,412,180
-
$ $ 19,152,816
$ 759,912
42
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Governmental activities
Compensated absences
$ 319,372
$ 381,924
$ 357,856
$ 343,440
$ 68,688
$ 319,372
$ 381,924
$ 357,856
$ 343,440
$ 68,688
Long-term
portion
_$__274,752
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Business -type activities
Bonds payable
$ 1,610,000
$ -
$ 115,000
$ 1,495,000
$ 115,000
Notes payable
17,933,047
150,426
425,657
17,657,816
1,138,495
Compensated absences
133,676
141,367
140,377
134,666
26,934
$ 19,676,723
$ 291,793
$ 681,034
$ 19,287,482
$ 1,280,429
Long-term
portion
$18,007,053
42
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 15)
NOTE 10 - Pension Plan
Plan Description:
The City contributes to the Base Plan which is a cost-sharing multiple -employer defined benefit pension plan administered by
Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its
agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions
and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the
required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov.
Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the
Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members
with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of
having served on the Board.
Employee membership data related to the PERSI Base Plan, as of June 30, 2015 and 2014, was as follows:
2015 2014
Members:
Active
Terminated and vested
Retirees and beneficiaries
Pension Benefits:
$ 67,008 $ 66,223
11,859 11,504
42,657 40,776
$ 121,524 $ 118,503
The Base Plan provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are
based on members' years of service, age, and highest average salary. Members become fully vested in their retirement benefits
with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon
attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of
credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months.
The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan
is required to provide a 1 % minimum cost of living increase per year provided the Consumer Price Index increases 1 % or more.
The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index
movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature.
Member and Employer Contributions:
Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered
compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may
make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that
are adequate to accumulate sufficient assets to pay benefits when due.
The contribution rates for employees are set by stature at 60% of the employer rate for general employees and 72% for police
and firefighters. As of June 30, 2015 it was 6.79% for general employees and 8.36% for police and firefighters. The employer
contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.32% general employees and 11.66%
for police and firefighters. The City's contributions were $468,993, $453,614, and $414,092, for the three years ended
September 30, 2015, 2014, and 2013, respectively.
43
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 15)
NOTE 10 - Pension Plan (continued)
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions:
At September 30,2015, the City reported a liability for its proportionate share of the net pension liability. The net pension liability
was measured as of July 1, 2015, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions
in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At July 1, 2015,
the City's proportion was 0.1459012 percent.
For the year ended September 30, 2015, the City recognized pension expense (revenue) of $376,025. At
September 30,2015, the City reported deferred outflows of resources and deferred inflows of resources related
to pensions from the following sources:
$127,484 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending, September 30, 2015.
The average of the expected remaining service lives of all employees that are provided with pensions
through the System (active and inactive employees) determined at July 1, 2014 the beginning of the
measurement period ended June 30, 2015 is 5.5 years.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense (revenue) as follows:
Year ended September 30, 2015
2016
Deferred
Deferred
(197,083)
Outflows of
Inflows of
2019
Resources
Resources
Differences between expected and actual experience
$ 707,085
$ 230,320
Changes in assumptions or other inputs
69,970
-
Net difference between projected and actual earnings on pension plan investments
-
1,008,934
Changes in the employer's proportion and differences between the employer's contributions and
the employer's proportionate contributions
569
9,411
City contributions subsequent to the measurement date
127,484
-
$ 905,108
$ 1,248,665
$127,484 reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ending, September 30, 2015.
The average of the expected remaining service lives of all employees that are provided with pensions
through the System (active and inactive employees) determined at July 1, 2014 the beginning of the
measurement period ended June 30, 2015 is 5.5 years.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense (revenue) as follows:
Year ended September 30, 2015
2016
(197,083)
2017
(197,083)
2018
(197,083)
2019
143,048
2020
(13,997)
Actuarial Assumptions:
Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal
costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present
value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each
year's earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial
accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under
Section 59-1322, Idaho Code, is 25 years.
The total pension liability in the July 1, 2015 actuarial valuation was determined using the following actuarial assumptions,
applied to all periods included in the measurement:
44
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 15)
NOTE 10 - Pension Plan (continued)
Inflation 3.25%
Salary increases 4.25%-10.00%
Salary inflation 3.75%
Investment rate of return 7.10%, net of investment expenses
Cost -of -living adjustments 1%
Mortality rates were based on the RP — 2000 combined table for healthy males or females as appropriate with the following
offsets:
• Set back 3 years for teachers
• No offset for male fire and police
• Forward one year for female fire and police
• Set back one year for all general employees and all beneficiaries
An experience study was performed in 2012 for the period July 1, 2007 through June 30, 2011 which reviewed all economic and
demographic assumptions other than mortality. Mortality and all economic assumptions were studied in 2014 for the period from
July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2015 is based on the results of an actuarial
valuation date of July 1, 2015.
The long-term expected rate of return on pension plan investments was determined using the building block approach and a
forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the
long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage
and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on
an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment
managers and trustees to develop capital market assumptions in analyzing the System's asset allocation. The assumptions and
the System's formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more
conservative than the current allocation of System's assets.
The best -estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-
term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of January 1, 2014.
Actuarial Assumptions
Assumed Inflation — Mean 3.25%
Assumed Inflation — Standard Deviation 2.00%
Portfolio Arithmetic Mean Return 8.42%
Portfolio Long -Term Expected Geometric Rate of Return 7.50%
Assumed Investment Expenses -0.40%
Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 7.10%
45
Long -Term
Target
Expected Real
Asset Class
Index
Allocation
Rate of
Core Fixed Income
Barclays Aggregate
30.00%
0.80%
Broad US Equities
Russell 3000
55.00%
6.90%
Developed Foreign Equities
MSCI ACWI ex USA
15.00%
7.55%
"Arithmetic return
Actuarial Assumptions
Assumed Inflation — Mean 3.25%
Assumed Inflation — Standard Deviation 2.00%
Portfolio Arithmetic Mean Return 8.42%
Portfolio Long -Term Expected Geometric Rate of Return 7.50%
Assumed Investment Expenses -0.40%
Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 7.10%
45
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 15)
NOTE 10 - Pension Plan (continued
Discount Rate:
The discount rate used to measure the total pension liability was 7.10%. The projection of cash flows used to determine the
discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these
assumptions, the pension plans' net position was projected to be available to make all projected future benefit payments of
current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of
projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of
pension plan investment expense but without reduction for pension plan administrative expense.
Sensitivity of the Employer's proportionate share of the net pension liability to changes in the discount rate:
The following presents the Employer's proportionate share of the net pension liability calculated using the discount rate of 7.10
percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1 -percentage -point lower (6.10 percent) or 1 -percentage -point higher (8.10 percent) than the current rate:
1% Decrease Current 1% Increase
(6.10%) Discount Rate (8.10%)
(7.10%)
Employer's proportionate share of the net pension liability
(asset) $ 4,679,544 $ 1,921,281 $ (371,848)
Pension plan fiduciary net position:
Detailed information about the pension plan's fiduciary net position is available in the separately issued PERSI financial report.
PERSI issues a publicly available financial report that includes financial statements and the required supplementary information
for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov.
Payables to the pension plan:
At September 30, 2015, the City reported payables to the defined benefit pension plan of $0 for legally required employer
contributions and $0 for legally required employee contributions which had been withheld from employee wages but not yet
remitted to PERSI.
NOTE 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 - Subsequent Events
Subsequent events were evaluated up to March 24, 2015, the date the financial statements were available to be issued.
NOTE 13 - Other Postemployment Benefits
The City complies with Idaho's requirements under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The liability
under state requirements related to other post -employment benefits for the medical insurance COBRA program is not required to
be reported. The City does not participate in any other post -employment benefit (OPEB).
NOTE 14 - Prior Period Change in Accounting
Adjustments Governmental activities:
During the year, the City became aware of an asset that was destroyed in the prior year but was not recognized in accordance
with the City's disposal policy. The disposal of the asset decreased the statement of net position and statement of activities
within the governmental activities by $117,315.
M
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 15)
NOTE 14 - Prior Period Change in Accounting (Continued)
Adjustments in Net Position from Implementation of New Pension Accounting Standard:
Beginning net position for the government -wide activities was adjusted in order to implement GASB 68, the new pension
accounting standard, which became effective this year. The schedule below provides details of the prior period adjustment. See
Note 10 for further disclosures on the pension plan and related accounting.
Beginning net position as previously reported
at September 30, 2014
Prior period adjustment - implementation
GASB 68:
Net pension liability
Deferred outflows
Deferred inflows
Net position as restated, October 1, 2014
47
Water Sewer Sanitation Governmental
Fund Fund Fund Activities
$ 10,321,546 $ 9,392,972 $ 2,663,963 $ 15,527,535
(141,722) (111,543) (49,244) (778,389)
15,879 12,498 5,518 87,214
(183,300) (144,268) (63,691) (1,006,751)
(309,143) (243,313) (107,417) (1,697,926)
$ 10,012,403 $ 9,149,659 $ 2,556,546 $ 13,829,609
REQUIRED SUPPLEMENTARY INFORMATION
48
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2015
49
Budgeted Amounts
Variance
Actual
Positive
Original
Final
Amounts
(Negative)
Resources
General property taxes and sales tax
$ 4,651,414
$ 4,651,414
$ 5,349,772
$ 698,358
Franchise fees
237,000
237,000
198,493
(38,507)
State sales and liquior taxes
500,000
500,000
414,411
(85,589)
Highway user's and road and bridge taxes
575,000
575,000
607,255
32,255
Parks revenue
26,100
26,100
5,402
(20,698)
Licenses, permits and fines
134,500
134,500
219,868
85,368
Grants
-
-
10,000
10,000
Fire protection and prevention
175,000
175,000
197,261
22,261
Leases and rents
100,000
100,000
78,637
(21,363)
Interest income
75,000
75,000
76,828
1,828
Charges for services
33,500
33,500
4,360
(29,140)
Other resources
432,298
432,298
72,660
(359,638)
Amounts available for appropriations
6,939,812
6,939,812
7,234,947
295,135
Charges to appropriations
General government
878,845
878,845
483,135
395,710
Law enforcement
2,850,047
2,850,047
2,843,478
6,569
Fire control
1,286,255
1,286,255
1,431,180
(144,925)
Building inspection
180,201
180,201
174,432
5,769
Street
1,438,431
1,438,431
1,365,190
73,241
Parks and recreation
545,673
545,673
498,932
46,741
Health and welfare
36,156
36,156
41,171
(5,015)
Capital Outlays
249,204
249,204
400,310
(151,106)
Total charges to appropriations
7,464,812
7,464,812
7,237,828
226,984
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
(525,000)
(525,000)
(2,881)
522,119
Other Financing Sources
Proceeds from sale of assets
-
-
21,153
21,153
Transfer in (out)
-
-
-
-
-
-
21,153
21,153
NET CHANGE IN FUND BALANCE
(525,000)
(525,000)
18,272
543,272
BEGINNING FUND BALANCE
180,859
180,859
2,933,821
2,752,962
ENDING FUND BALANCE
$ (344,141)
$ (344,141)
$ 2,952,093
$ 3,296,234
49
Schedule of Employer's Share of Net Pension Liability
PERSI - Base Plan
Last 10 - Fiscal Years*
2015
Employer's portion of the net pension liability 0.145901200%
Employer's proportionate share of the net pension liability $ 1,921,281
Employer's covered -employee payroll $ 4,198,217
Employer's proportional share of the net pension liability as a percentage of
its covered -employee payroll 46%
Plan fiduciary net position as a percentage of the total pension liability 91.38%
* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year
trend is compiled, the City will present information for those years for which information is available
Data reported is measured as of July 1, 2015
Schedule of Employer Contributions
PERSI — Base Plan
Last 10 — Fiscal Years
2015
Statutorily required contribution $ 477,246
Contributions in relation to the statutorily required contribution $ 468,694
Contribution (deficiency) excess $ 8,552
Employer's covered -employee payroll $4,198,217
Contributions as a percentage of covered -employee payroll 11.16%
* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -
year trend is compiled, the City of Chubbuck will present information for those years for which information is
available.
Data is reported as a measurement of Fiscal Year 2015.
51
CITY OF CHUBBUCK, IDAHO
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
SEPTEMBER 30, 2015
NOTE 1 - EXPENDITURES IN EXCESS OF BUDGET
GENERALFUND
Fire Control
The City had expenditures in excess of budget of $144,925 due to an increase in fire control equipment
purchases and maintenance expenditures. These expenditures were paid using excess revenues over
budget.
Health & Welfare
The City had expenditures in excess of budget of $5,015 due to an increase in health and welfare
expenditures. These expenditures were paid using excess revenues over budget.
Capital Outlays
The City had expenditures in excess of budget of $151,106 due to the purchase of additional assets.
Theses assets included land, building, and equipment that were not accounted for in the budget. These
expenditures were paid using excess revenues over budget.
52
OTHER SUPPLEMENTARY INFORMATION
53
ASSETS
Cash
FUND BALANCES
Committed, reported in:
Special revenue fund
CITY OF CHUBBUCK, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2015
Special Revenue
Street Juvenile Road Total
Guarantee Referral Court Projects Parks Nonmajor
Fund Fund Fund Fund Fund Funds
$ 11,014 $ 5,059 $ 71,623 $ 164,622 $ 301,857 $ 554,175
$ 11,014 $ 5,059 $ 71,623 $ 164,622 $ 301,857 $ 554,175
54
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, 2015
Special Revenue
Street Juvenile Road Total
Guarantee Referral Court Projects Parks Nonmajor
Fund Fund Fund Fund Fund Funds
REVENUES
Donations $ - $ - $ - $ - $ 38,000 $ 38,000
Other revenues - - 4,478 - - 4,478
4,478 - 38,000 42,478
EXPENDITURES
Other purchased services - - - - - -
NET CHANGE IN FUND BALANCES - - 4,478 - 38,000 42,478
BEGINNING FUND BALANCE 11,014 5,059 67,145 164,622 263,857 511,697
ENDING FUND BALANCE $ 11,014 $ 5,059 $ 71,623 $ 164,622 $ 301,857 $ 554,175
55
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Budgeted Amounts Variance
Actual Positive
Original Final Amounts (Negative)
Resources
General property taxes and sales tax
$ 18,600
$ 18,600 $ -
$ (18,600)
Interest income
8,300
8,300 -
(8,300)
Donations
80,000
80,000 38,000
(42,000)
Other resources
40,000
40,000 4,478
(35,522)
Amounts available for appropriations
146,900
146,900 42,478
(104,422)
Charges to appropriations
Street guarantee fund
Juvenile referral fund
Court fund
Road projects fund
Parks fund
Total charges to appropriations
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
19,100
19,100
- 19,100
500
500
- 500
42,100
42,100
- 42,100
1,200
1,200
- 1,200
84,000
84,000
- 84,000
146,900
146,900
- 146,900
-
-
42,478 42,478
-
-
511,697 511,697
$ -
$ -
$ 554,175 $ 554,175
56
See accompanying notes to financial statements
STATISTICAL SECTION
57
Statistical Section
This part of the City of Chubbuck's comprehensive annual financial report presents detailed
information as a context for understanding what the information in the financial statements,
note disclosures, and required supplementary information says about the government's
overall financial health.
Contents Page
Financial Trends 59-66
These schedules contain trend information to help the reader
understand how the City's financial performance and well-being
have changed over time.
Revenue Capacity 67-70
These schedulers contain information to help the reader assess
the City's most significant local revenue source, the property tax.
Debt Capacity 71-73
These schedules offer demographic and economic indicators to
help the reader understand the environment within which the
City's financial activities take place.
Operating Information 74-75
These schedules contain service and infrastructure data to help
the reader understand how the information in the government's
financial report relates to the services the government provides
and the activities it performs.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
58
City of Chubbuck
Net Position By Components
Last Ten Fiscal Years
(Accrual -Basis Accounting)
Fiscal Year
59
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Governmental activities:
Invested in capital assets, net of related debt
$
2,312,266
$
2,714,581
$
3,955,359
$
5,206,926
$
5,069,941
$
5,082,171
$
7,706,251
$
10,153,123
$
11,396,599
$
10,137,975
Restricted
-
-
-
-
Unrestricted
1,420,274
2,401,710
1,187,929
1,380,855
1,825,092
2,451,180
2,896,706
3,592,593
4,130,936
41532,072
Total governmental activities net position
$
3,732,540
$
5,116,291
$
5,143,288
$
6,587,781
$
6,895,033
$
7,533,351
$
10,602,957
$
13,745,716
$
15,527,535
$
14,670,007
Business -type activities
Invested in capital assets, net of related debt
$
2,832,176
$
3,211,964
$
3,630 021
$
2,508,259
$
3,876,095
$
2,260,822
$
4,402,647
$
5,460,743
$
6,091,493
$
6,086,514
Restricted
932,323
876,091
819,972
819,972
132,650
237,981
169,081
165,781
167,481
165,181
Unrestricted
1,472,695
2,184,527
3,053,444
5,010,701
5,997,346
10,043,852
11,985,356
14,006,605
16,145,285
18,460,974
Total business -type activities net position
$
5,237,194
$
6,272,582
$
7,503,437
$
8,338,932
$
10,006,091
$
12,542,655
$
16,557,084
$
19,633,129
$
22,404,259
$
24,712,669
Primary government
Net investment in capital assets
$
5,144,442
$
5,926,545
$
7,585,380
$
7,715,185
$
8,946,036
$
7,342,993
$
12,108,898
$
15,613,866
$
17,488,092
$
16,224,489
Restricted
932,323
876,091
819,972
819,972
132,650
237,981
169,081
165,781
167,481
165,181
Unrestricted
2,892,969
4,586,237
4,241,373
6,391,556
7,822,438
12,495,032
14,882,062
17,599,198
20,276,221
22,993,046
Total primary government net position
$
8,969,734
$
11,388,873
$
12,646,725
$
14,926,713
$
16,901,124
$
20,076,006
$
27,160,041
$
33,378,845
$
37,931,794
$
39,382,716
59
City of Chubbuck
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
60
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Expenses
Governmental activities:
General Government
$ 179,445
$ 166,391
$ 288,868
$ 206,342
$ 297,342
$ 229,616
$ 235,127
$ 352,910
$ 443,813 $
542.495
Law enforcement
2,148,010
1,997,249
2,299,792
2,518,618
2,512,720
2,714,226
2,576,916
2,782,655
2,771,003
2,868,345
Fire Control
872,176
974,041
1,085,222
1,094,307
1,172,846
1,170,902
1,307,735
1,313,575
1,335,240
1,519,108
Building Inspection
138,923
166,090
150,084
154,402
159,482
165,214
158,409
163,631
172,439
172,946
Street
777,895
631,702
769,091
797,537
771,777
831,182
1,087,455
1,122,746
1,450,965
1,524,819
Parks 8, Recreation
644,271
602,645
555,030
571,561
625,569
544,793
534,574
494,692
484,041
529,372
Health and welfare
11,585
24,505
38,814
30,850
58,154
44,487
31,462
39,552
51,165
41,171
Development Fund
1,173,552
744,808
-
-
-
-
-
-
-
-
other special revenue funds
97,044
111,983
134,017
131,873
30,419
857
17,113
5,150
350
-
CIAWWCAuthority
4,574
2,930
2,930
Total governmental activities expenses
6,042,901
5,419,414
5,320,918
5,505,490
5,628,309
5,701,277
5,948,791
6,279,485
6,711,946
7,201,186
Business -type activities:
Utilities(Water, Sewer, Sanitation Combined)
3,838,000
4,080,190
-
-
-
-
-
-
Water
-
-
1,435,959
1,909,528
1,438,541
1,355,305
1,398,887
1,466,297
1,560,406
1,781,501
Sewer
-
-
1,537,829
1,792,591
1,821,036
1,669,178
1,847,034
2,072,020
1,709,310
2,200,476
Sanitation
-
-
1,551,827
1,236,840
1,192,962
1,174,725
1,132,300
1,116,071
1,219,283
1,060,218
Total business -type activities program expenses
3,838,000
4,080,190
4,525,615
4,938,959
4,452,539
4,199,208
4,378,221
4,654,388
4,488,999
5,042,195
Total primary government program expenses
$ 9,880,901
$ 9,499,604
$ 9,846,533
$ 10,444,449
$ 10,080,848
$ 9,900,485
$ 10,327,012
$ 10,933,873
$ 11,200,945 $
12,243,381
60
City of Chubbuck
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
61
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
Program Revenues
Governmental activities:
Charges for services:
General Government
$
327,621
$ 221,482
$
195,206
$
135,984
$
121,602
$
237,249
$
133,808
$
203,578
$
134,555
$
298,505
Law enforcement
5,185
-
-
-
-
-
-
-
-
35,311
Fire control
138,651
293,714
183,189
164,847
19S,564
180,020
210,650
191,317
232,992
197,261
Parks & Recreation
45,490
58,136
48,949
51,817
59,186
70,900
6,534
4,955
7,203
9,762
Operating grants and contributions
353,893
58,191
115,424
121,553
184,265
64,685
43,612
128,818
33,200
48,000
Capital grants and contributions
-
-
-
-
-
-
_
_
916,767
Total governmental activities program revenues
870,840
631,523
542,768
474,201
560,617
552,854
394,604
528,668
407,950
1,505,606
Business -type activities:
Charges for services:
Utilities(Water, Sewer, Sanitation Combined)
3,882,168
5,087,044
-
-
-
_
-
-
Water
-
-
2,105560
2,080,766
2,193,212
2,204,728
2,386,464
2,582,932
2,422,542
2,680,920
Sewer
-
-
2,094,123
2,207,254
2,322,331
2,863,260
3,228,353
3,182,335
3,093,116
3,583,861
Sanitation
-
-
1,130,791
1,340,354
1,602,525
1,644,935
1,625,302
1,649,604
1,727,680
1,731,740
Operating grants and contributions
11,328
Total business -type activities program revenues
3,882,168
5,087,044
5,330,474
5,628,374
6,1181068
6,712,923
7,240,119
7,414,871
7,243,338
8,007,849
Total primary government program revenues
$
4,753,008
$ 5,718,567
$
5,873,242
$
6,102,575
$
6,678,685
$
7,265,777
$
7,634,723
$
7,943,539
$
7,651,288
$
9,513,455
Net(Expense)/Revenue
Governmental activities
$
(5,172,061)
$ (4,787,891)
$
(4,778,150)
$
(5,031,289)
$
(5,067,692)
$
(5,148,423)
$
(5,554,187)
$
(5,750,817)
$
(6,303,996)
$
(5,695,580)
Business -type activities
44,168
1,006,854
804,859
689,415
1,665,529
2,513,715
2,861,898
2,760,483
2,754,339
2,965,654
Total primary governmental net (expense)/revenue
$
(5,127,893)
$ (3,781,037)
$
(3,973,291)
$
(4,341,874)
$
(3,402,163)
$
(2,634,708)
$
(2,692,289)
$
(2,990,334)
$
(3,549,657)
$
(2,729,926)
61
City of Chubbuck
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
62
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
General Revenues and other Changes in Net Position
Governmental activities:
General Property taxes and sales tax
$ 4,452,942
$ 4,971,951
$ 3,641,216
$ 3,973,326 $
4,176,298
$ 4,441,858
$ 4,594,553
$ 4,982,426
$ 5,292,450
$ 5,296,480
Franchise fees
173,551
195,214
208,853
222,369
227,744
179,839
201,128
192,151
203,790
198,493
Intergovernmental
605,362
658,629
902,580
815,486
817,906
797,354
908,227
955,679
903,149
1,021,666
Leases and rents
28,179
40,295
27,606
34,660
19,491
50,644
52,546
90,843
66,152
-
Interest income
57,436
118,408
55,095
26,714
19,292
30,738
36,797
60,367
60,651
76,828
Proceeds from sale of assets
-
-
-
-
-
-
-
11,154
-
Gain on sale of assets
7,715
-
12,040
6,541
11,073
16,242
17,223
34,788
-
18,038
Capital contributions
-
1,319,561
1,323,278
34,088
217,034
2,683,248
2,254,771
1,286,887
-
Otherrevenue
104,081
174,459
22,752
39,323
-
35,491
18,486
89,066
14,366
41,827
Transfers in (out)
-
12,686
(12,687)
28,000
-
-
-
-
(3,000)
-
CIAWWCAuthority
-
-
-
-
-
-
-
228,000
228,000
-
Total governmental activities
5,429,266
611710642
6,177,016
6,469,697
5,305,892
5,769,200
8,512,208
8,888,091
8,063,599
6,653,332
Business -type activities:
Interest income
74,276
97,452
78,510
58,039
22,844
22,849
32,121
644
574
-
Capital contributions
-
-
493,445
116,041
-
-
1,125,220
261,081
13,217
-
Gain on sale of assets
-
-
-
-
-
10,800
2,400
2,530.00
Transfers in (out)
-
(12,686)
12,687
(28,000)
-
-
-
-
3,000
100.00
Total business -type activities
74,276
84,766
584,642
146,080
22,844
22,849
1,168,141
264,125
16,791
2,630.00
Total primary government
5,503,542
6,256,408
6,761,658
6,615,777
5,328,736
5,792,049
9,680,349
9,152,216
8,080,390
6,655,962.00
Changes in Net Position
Governmental Activities
257,205
1,383,751
1,398,866
1,438,408
238,200
620,777
2,958,021
3,137,274
1,759,603
957,752
Business -type activities
118,444
1,091,620
1,389,501
_;
835,495
1,688,373
2,536,564
4,030,039
3,024,608
2,771,130
2,968,284
Total primary government
$ 375,649
S 2,475,371
2,788,367
7 2,273,903 $
1,926,573
$ 3,157,341
$ 6,988,060
$ 6,161,882
$ 4,530,733
$ 3,926,036
62
City of Chubbuck
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
63
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
General fund
Unassigned
$
429,125
$
618,692
$
734,822
$
962,458
$
1,334,763
$
1,884,064
$
2,348,830
$
2,708,737
$
2,933,821
$
2,952,093
Total General Fund
$
429,125
$
618,692
$
734,822
$
962,458
$
1,334,763
$
1,884,064
$
2,348,830
$
2,708,737
$
2,933,821
$
2,952,093
Development Fund
Unassigned:
Special revenue funds
$
535,858
$
1,345,931
$
$
$
$
$
$
$
$
Total Development Fund
$
535,858
$
1,345,931
$
$
$
$
$
$
$
$
All Other Governmental Funds
Restricted
$
$
$
$
$
$
$
$
$
$
Committed
629,440
632,837
490,894
511,696
554,175
Unassigned:
Special revenue funds
641,653
630,849
689,060
622,179
613,032
-
-
-
-
_
Total all other governmental funds
$
641,653
$
630,849
$
689,060
$
622,179
$
613,032
$
629,440
$
632,837
$
490,894
$
511,696
554,175
63
Revenues:
General property taxes and sales tax
Franchise fees
Intergovernmental
Court Revenue
Parks revenue
License, permits and fines
Grants
Fire protection and prevention
Leases and rents
Interest income
Donations
Donation of infrastructures
Charges for services
Other revenues
Total Revenues
Development Fund Revenues:
General property taxes
Grants
Interest income
Other revenues
Miscellaneous
Total Revenues Development Fund
City of Chubbuck
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
$ 3,147,912 $
3,611,371
$ 3,623,783 $
3,911,681 $
4,133,709 $
4,435,834 $
4,567,959 $
4,984,949
$ 5,295,493 $
5,349,772
173,551
195,214
208,853
222,369
227,744
179,839
201,128
192,151
203,790
198,493
605,362
658,629
902,580
815,486
817,906
797,354
908,227
955,679
903,149
1,021,666
-
-
-
-
-
-
35,311
45,490
58,136
48,949
3,379
2,499
1,977
2,399
1,720
2,668
5,402
332,807
221,481
195,206
135,984
121,602
237,249
133,808
203,578
134,555
219,868
255,864
58,191
72,224
87,840
158,025
58,465
27,892
302,500
14,800
466,000
138,651
293,714
183,189
164,847
195,564
180,020
210,650
191,317
232,992
197,261
28,179
40,295
27,606
34,660
19,491
50,644
52,546
90,843
66,152
78,637
35,981
55,177
55,095
26,714
19,292
30,738
36,797
60,367
60,651
76,828
98,028
40,540
43,200
33,713
26,240
6,220
15,720
54,318
18,400
38,000
-
-
-
-
11,073
-
-
-
-
-
-
-
-
48,438
56,687
68,923
4,135
3,235
4,535
4,360
68,424
_39,151
22,752
39,323
34,088
35,491
18,486
89,066
14,366
41,827
$ 4,930,249 $
5,271,899
$ 5,383,437 $
5,524,434 $
5,823,920 $
6,082,754 $
6,179,747 $
7,129,723
$ 6,951,551 $
7,733,425
$ 1,242,751 $ 1,400,912
21,455 63,231
35,657 94,768
$ 1,299,863 $ 1,558,911
64
65
City of Chubbuck
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting
2006
2007
2008
2009 2010
2011
2012
2013
2014
2015
Expenditures:
General government
$
128,779
$
148,808
$
217,346 $
169,192 $ 301,208 $
186,863 $
214,382 $
326,399
$ 393,539 $
483,135
Law enforcement
2,040,132
2,042,398
2,240,447
2,439,011 2,409,109
2,616,515
2,494,222
2,669,035
2,695,807
2,843,478
Fire control
987,023
889,346
985,968
971,009 1,024,047
1,127,747
1,174,659
1,211,430
1,234,101
1,431,180
Building inspection
138,923
160,533
147,877
152,361 157,675
165,214
158,409
163,631
172,439
174,432
Street
761,166
623,376
727,758
758,550 732,617
788,356
1,035,804
1,054,574
1,356,339
1,365,190
Parks and recreation
647,379
660,779
509,437
527,601 578,779
498,355
488,874
437,882
442,246
498,932
Health and welfare
11,585
24,505
38,814
30,850 58,154
44,487
31,462
39,552
51,165
41,171
Street guarantee fund
72,434
30,785
12,910
3,734 -
-
-
5,000
-
Court fund
2,610
58,898
3,507
11,699 -
857
2,780
150
350
-
Parks fund
22,000
22,300
117,600
116,440 30,419
-
14,333
-
-
-
Capital outlays
-
-
207,704
131,803 177,694
58,690
225,467
968,502
365,442
409,060
CIAWWC Authority
4,574
2,930
458,930
Total Expenditures
$
4,812,031
$
4,661,728
$
5,209,368 $
5,312,250 $ 5,469,702 $
5,487,084 $
5,840,392 $
6,880,729
$ 6,714,358 $
7,705,508
Development Fund Expenditures:
Development Fund
$
1,165,895
$
744,808
Total Development Fund Expenditures
$
1,165,895
$
744,808
Excess (deficiency) of Revenues over
(under) Expenditures (Including
development fund 2003 to 2007)
$
252,186
$
1,424,274
$
174,069 $
212,184 $ 354,218 $
595,670 $
339,355 $
248,994
$ 237,193 $
27,917
65
City of Chubbuck
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Other financing sources (uses):
Proceeds from capital lease
$ - $
62,645 $
124,610 $
58,491 $
85,772 $
- $
- $
-
Proceeds from note payable
175,281
155,468
11,680
Principal payments on leases
(80,330)
(105,052)
(131,565)
(153,670)
(72,089)
(43,139)
-
-
-
-
Principal payments
(249,263)
(154,929)
Interest expense
-
-
(4,743)
(3,064)
(5,330)
-
-
Proceeds from sale ofassets
10,090
-
19,914
15,750
16,242
17,223
42,796
11,154
21,153
Transfers in (out)
-
12,686
(12,687)
28,000
-
(3,000)
Total other financing sources(uses)
(70,240)
(29,721)
272
(51,429)
8,940
(29,961)
17,223
(36,516)
8,693
32,833
Net Change in Fund Balances
181,946
245,886
60,750
1,394,553
174,341
160,755
363,158
565,709
356,578
212,478
Beginning Fund Balances
1,018,973
1,200,919
1,249,541
1,423,882
1,584,637
1,947,795
2,625,090
2,987,154
3,199,632
3,445,518
Prior Period Adjustment
(1,345,931)
111,586
Ending Fund Balances
$ 1,200,919 $
1,249,541 $
1,423,882 $
1,584,637 $
1,947,795 $
21625,090 $
2,981,668 $
3,199,632 $
3,445,518 $
3,506,268
Note: For the fiscal year 2007, the city reclassified the Chubbuck Development Authority, a component unit, from a blended component unit, which was being reported as a major fund in the general
government funds, to a discreetly presented component unit.
66
Local Tax Revenues
City of Chubbuck
General Government Tax and Intergovernmental Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
Intergovernmental Revenues
Total
Total local State Liquor Highway User's Court Shared Sales Intergovernmental
Fiscal Year P Tax F N T T R
w
rope- a
raise nc ax
Sales Tax
axes
Tax
evenue
Revenue
Road & Bridge
Tax
2006
$ 2,601,949
$ 172,813
$ 386,394
$ 3,161,156
$ 99,779
$ 402,005
$ 50,009
$ 39,059 $
211,581 $
2007
2,898,135
192,001
407,194
3,497,330
224,057
322,468
60,227
51,639
269,474
2008
3,256,795
205,831
388,149
3,850,775
108,050
407,741
63,808
52,055
238,143
2009
3,620,421
220,434
354,280
4,195,135
124,927
401,040
55,921
69,946
174,374
2010
3,784,225
230,678
345,227
4,360,130
131,927
397,068
42,589
65,582
168,241
2011
4,048,626
180,589
373,619
4,602,834
136,058
421,162
46,523
62,263
130,922
2012
4,118,011
201,128
449,949
4,769,088
149,070
451,302
41,915
59,652
206,288
2013
4,497,017
192,152
487,932
5,177,101
154,777
463,463
38,277
72,887
226,276
2014
4,781,207
203,790
514,286
5,499,283
152,877
467,297
30,815
66,326
185,833
2015
$ 4,813,441
$ 198,493
$ 536,331
$ 5,548,265
$ 148,641
$ 494,812
$ 35,312
$ 112,443 $
265,770 $
67
.es
Total Taxes
802,433
$ 3,963,589
927,865
4,425,196
869,797
4,720,572
826,208
5,021,343
805,407
5,165,537
796,928
5,399,762
908,227
5,677,315
955,680
6,132,781
903,148
6,402,431
1,056,978
$ 6,605,243
Local Taxes as a
Percentage of
Total
80%
79%
82%
84%
84%
85%
84%
84%
86%
84%
City of Chubbuck
Assessed Valuation and Tax Rate
Last Ten Fiscal Years
Fiscal Year
Real and Personal Tax
Roll
Utilities Tax Roll
Actual Sub Roll
Exemptions Home
Owner's
Exemptions Personal Total Assessed Actual
Property Value
Levy Rate
Tax Rate Per $1,000
Value
2006
300,799,344
6,179,284
1,405,238
112,491,029
420,874,895
0.008266989
$
8.27
2007
323,542,435
6,384,193
252,163
148,011,390
478,190,181
0.008711197
$
8.71
2008
369,750,907
6,843,537
1,903,379
194,805,374
573,303,197
0.008442935
$
8.44
2009
415,654,025
6,582,216
2,567,125
224,638,051
649,441,417
0.008404576
$
8.40
2010
441,194,413
6,741,267
368,403
237,118,306
685,422,389
0.008466774
$
8.47
2011
431,386,854
6,776,598
704,500
214,484,395
653,352,347
0.009150122
$
9.15
2012
436,089,131
7,435,674
302,838
230,651,324
674,478,967
0.009324266
$
9.32
2013
446,262,451
7,358,180
488,182
225,397,223
- 679,506,036
0.009969299
$
9.97
2014
454,554,481
7,573,803
513,109
203,675,558
638,203 666,955,154
0.009967676
$
9.97
2015
459,147,628
7,502,193
1,138,795
236,839,910
- 704,628,526
0.009933799
$
9.93
Source: Bannock County Clerks Office
Note: Twenty percent of the property in the county is
reassessed annually. The County assesses property at 100% of market value. Tax rates are per $1,000 of assessed value.
M
City of Chubbuck
Property Tax Rates
Direct and Overlapping (1) Governments
Last Ten Fiscal Years
(per $1,000 of assessed value)
Source: Bannock County Assessors Office
(1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck.
Combined Levy
Rates
22.64
20.07
19.72
19.29
19.10
19.70
19.43
20.91
20.91
21.50
City of Chubbuck
Overlapping Rates
County Road &
Portneuf Library
Ambulance Service
School District 25
Year
Base Rates
Bannock County Rates
Bridge Rates
Abatement Rates
Rates
Rates
Rates
2006
8.27
5.49
0.40
0.64
0.27
7.57
2007
8.71
5.28
0.59
0.66
0.28
4.56
2008
8.44
5.35
0.53
0.65
0.26
4.48
2009
8.40
5.13
0.64
-
0.62
0.25
4.25
2010
8.47
5.17
0.61
0.17
0.61
0.25
3.82
2011
9.15
5.28
0.43
0.15
0.57
0.25
3.86
2012
9.32
4.82
0.41
0.13
0.61
0.24
3.90
2013
9.97
4.92
0.47
0.05
0.61
0.40
4.49
2014
9.97
5.30
0.48
0.05
0.57
0.40
4.14
2015
9.93
5.28
0.85
0.04
0.58
0.40
4.42
Source: Bannock County Assessors Office
(1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck.
Combined Levy
Rates
22.64
20.07
19.72
19.29
19.10
19.70
19.43
20.91
20.91
21.50
City of Chubbuck
Principal Taxpayers
September 30, 2015
2015 2006
Source: Bannock County Assessors Office
70
Percentage of
Assessed
Total Assessed
Percentage of Total
Taxpayer
Type of Business
Valuation
Rank
Valuation
Assessed Valuation
Rank
Assessed Valuation
IDAHO CENTRAL CREDIT UNION
BANK
18,595,225
1
2.64%
NEIBAUER CHUBBUCK HOLDINGS LLC
12,550,000
2
1.78%
PINE RIDGE MALL JC LLC
RETAIL
9,985,574
3
1.42%
26,165,700
1
6.22%
WAL MART REAL ESTATE
RETAIL
9,709,957
4
1.38%
10,126,800
2
2.41%
ALLSTATE INSURANCE COMPANY
INSURANCE/FINANCE
9,154,248
5
1.30%
SHJH LLC
APARTMENTS
7,172,500
6
1.02%
HD DEVELOPMENT OF MARYLAND INC
7,105,536
7
1.01%
6,255,830
3
1.49%
CARMIKE CINEMAS INC.
ENTERTAINMENT
5,215,232
8
0.74%
4,134,000
5
0.98%
TEKLE, HAILE
5,204,568
9
0.74%
EMERITOL RIDGE WIND LLC
APARTMENTS
4,242,947
10
0.60%
SHOPKO SPE REAL ESTATE LLC
RETAIL
4,179,200
4
0.99%
SEARS ROEBUCK AND CO.
RETAIL
3,548,093
7
0.84%
HEALTH CARE REIT INC.
3,497,000
8
0.83%
QWEST CORPORATION
COMMUNICATION
3,394,362
10
0.81%
GOLDING FAMILY LIMITED
3,828,500
6
0.91%
WAL-MART STORES EAST LP #1995
3,399,862
9
0.81%
Total Top Ten
$ 88,935,787
12.62%
$ 68,529,347
16.28%
Source: Bannock County Assessors Office
70
City of Chubbuck
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(accrual basis of accounting)
Note: The estimated populations for years 2009, 2012, and 2014 were not available and so the most current estimate was used for these years.
Source: (1) U.S. Census
71
Governmental
Activities
Business Type Activities
(1)
riscai
am a ion
water Funo
water Note
ewer o e-
lotal Primary
--E-371-Malea
Per -
Year
Capital Lease
Notes
Sewer Bond
Certificates
Water Bond
DEQ
DEQ
Government
Population
Capita
2006
173,998
375,000
550,000
354,159
1,453,157
11,303
129
2007
131,590
-
330,000
425,000
340,899
1,227,489
11,525
107
2008
124,635
2,319,538
285,000
290,000
327,262
-
3,346,435
11,828
283
2009
29,466
2,529,129
235,000
150,000
-
313,061
1,038,509
4,295,165
11,828
363
2010
43,139
2,249,257
125,000
-
298,454
8,910,084
11,625,934
13,922
835
2011
-
1,953,409
65,000
1,995,000
283,370
16,952,087
21,248,866
14,067
1,511
2012
-
1,382,774
-
1,830,000
267,790
17,665,819
21,146,383
14,067
1,503
2013
27,739
1,265,080
1,720,000
251,448
16,873,075
20,137,342
14,125
1,426
2014
-
1,130,594
1,610,000
234,833
16,436,562
19,411,989
14,125
1,374
2015
1,076,827
-
1,495,000
217,757
16,363,232
19,152,816
14,229
1,346
Note: The estimated populations for years 2009, 2012, and 2014 were not available and so the most current estimate was used for these years.
Source: (1) U.S. Census
71
City of Chubbuck
Revenue Bond Coverage
Water Fund
Last Ten Fiscal Years
Debt Service Requirements (3)
72
Pledge of
Revenues
Coverage
Total Coverage Requirement (4)
124,663 7.94 6.35
170,068 6.99 5.59
168,338 7.84 6.27
171,574 6.25 5.00
167,863 6.84 5.47
Net Revenue
Available for Debt
Fiscal Year Gross Revenue (1) Operating Expense (2)
Service
Principal
Interest
2006 - -
2007
2008
2009
2010 - -
-
-
-
2011 2,219,014 1,229,611
989,403
100,000
24,663
2012 2,411,854 1,222,469
1,189,385
110,000
60,068
2013 2,583,576 1,263,607
1,319,969
110,000
58,338
2014 2,423,116 1,351,349
1,071,767
115,000
56,574
2015 2,680,920 1,532,822
1,148,098
115,000
52,863
(1) Total revenues( including interest)
(2) Total operating expenses exclusive of deprecation.
(3) Includes principal and interest of revenue bonds only.
(4) Pledge of Revenues requires the City to provide net revenues equal to not less than 1.25 times the average annual debt service on the bond.
72
Pledge of
Revenues
Coverage
Total Coverage Requirement (4)
124,663 7.94 6.35
170,068 6.99 5.59
168,338 7.84 6.27
171,574 6.25 5.00
167,863 6.84 5.47
City of Chubbuck
Pledged - Revenue Bond Coverage
Sewer Fund
Last Ten Fiscal Years
Debt Service Requirements (3)
Principal
40,000
45,000
45,000
50,000
110,000
65,499
75,999
Interest
$ 18,629 $
14,100
10,800
7,500
45,911
(1) Total revenues ( including interest) exclusive of cap fees.
(2) Total operating expenses exclusive of deprecation.
(3) Includes principal and interest of revenue bonds only.
Note: Previous to 2008 utility funds were combined and sewer fund revenue, and expenses were not reported separately.
Sewer revenue bond was paid off 2012
73
Total
Coverage
rveLnevenue
-
0.00
63,629
Available for Debt
Fiscal Year
Gross Revenue (1)
Operating Expense (2)
Service
2006
17.83
121,910
12.81
2007
-
-
-
2008
$ 2,137,760
$ 1,387,300
$ 750,460
2009
2,228,975
1,652,902
576,073
2010
2,329,109
1,688,330
640,779
2011
2,869,296
1,567,867
1,301,429
2012
3,232,770
1,670,669
1,562,101
2013
-
-
-
2014
2015
Debt Service Requirements (3)
Principal
40,000
45,000
45,000
50,000
110,000
65,499
75,999
Interest
$ 18,629 $
14,100
10,800
7,500
45,911
(1) Total revenues ( including interest) exclusive of cap fees.
(2) Total operating expenses exclusive of deprecation.
(3) Includes principal and interest of revenue bonds only.
Note: Previous to 2008 utility funds were combined and sewer fund revenue, and expenses were not reported separately.
Sewer revenue bond was paid off 2012
73
Total
Coverage
0.00
-
0.00
63,629
11.79
64,100
8.99
120,800
5.30
72,999
17.83
121,910
12.81
-
0.00
0.00
0.00
City of Chubbuck
Statistical Information
Water Fund
September 30, 2015
Schedule of Water Revenue and Production For Residential,
Commercial, and Government Accounts
Total Revenue $ 2,680,920
Estimated number of active customers 3,500
Total water produced (gallons) 815,459
Schedule of Water Rates
Monthly Base Fee (by meter size)
Size
Price Circuit Breaker
1" or less
$ 24.00 $ 16.80
1.5 "
69.10
2"
106.95
3"
222.45
4"
364.60
6"
736.70
8"
1,153.75
10"
1,762.60
Volumetric charge: $1.15 per 1,000 gallons metered water.
Volumetric charge for circuit breaker: $.80 per 1,000 gallons
metered water.
74
City of Chubbuck
Statistical Information
Sewer Fund
September 30, 2015
Schedule of Sewer Revenue For Residential, Commercial, and Government
Accounts
Total Revenue $ 3,583,861
Schedule of Sewer Rates
Monthly Base Fee
Regular Circuit Breaker
Residential $ 43.80 $ 30.66
NWSI Residential 11.90 -
Commercial rate for businesses North of the Interstate is $6.173 per $1,000 gallons
of water used.
Commercial rate for businesses South of the Interstate is $6.953 per $1,000
gallons of water used.
NWSI Commercial rate is winter water average usage divided by $6.85 and
multiplied by $11.90.
75
COMPLIANCE SECTION
76
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 ofAmerican Institute of Certified Public AccountaNs
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
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 Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of City of Chubbuck, as of and for the year ended
September 30, 2015, 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 24, 2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Chubbuck's
internal control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances 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. Accordingly, we do not express an opinion on the effectiveness of City of Chubbuck's internal
control.
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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Chubbuck's financial statements are
free from material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and material
effect on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance or other matters that are
required to be reported under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
entity's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the entity's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Chubbuck, Idaho
March 24, 2016
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF FINDINGS AND RESPONSES
FOR THE YEAR ENDED SEPTEMBER 30, 2015
Findings Of Significant Deficiency And Responses
No findings noted
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