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HomeMy WebLinkAbout2016CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 CITY OF CHUBBUCK, IDAHO ANNUAL_ FINANCIAL REPORT FOR THE FISCAL_ YEAR ENDED SEPTEMBER 30, 2016 TABLE OF CONTENTS Page Title Page 1 Table of Contents 2-3 Introductory Section 4 Letter of Transmittal 5-7 List of Principal Officials 8 Organizational Chart 9 Financial Section 28 Independent Auditor's Report 10-12 Management Discussion and Analysis 13-22 Statements of Net Position 23 Statements of Activities 24 Balance Sheets - Governmental Funds 25 Statements of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 26-27 Statements of Position - Proprietary Funds 28 Statements of Revenues, Expenses, and Changes in Net Position - Proprietary 29 Statements of Cash Flows - Proprietary Funds 30-31 Statement of Fiduciary Net Position - Recreational Program Fund 32 Statement of Changes in Fiduciary Net Position - Recreational Program Fund 33 Notes to Financial Statements 34-47 2 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2016 TABLE OF CONTENTS - CONTINUED Page Required Supplementary Information 48 Budgetary Comparison Schedule - General Fund 49 Budgetary Comparison Schedule - Highway, Streets and Roads 50 Schedule of Employer's Share of Net Pension Liability 51 Schedule of Employer Contributions 52 Notes to Required Supplementary Information 53 Other Supplementary Information 54 Combining Balance Sheet - Nonmajor Governmental Funds 55 Statement of Revenues, Expenditures, and Changes in Fund Balances - 67-73 Nonmajor Governmental Funds 56 Statements of Position - Internal Service Funds 57 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 58 Budgetary Comparison Schedule - Nonmajor Governmental Funds 59 Statistical Section 60 Statistical Section - Table of Contents 61 Financial Trends 62-66 Revenue Capacity 67-73 Debt Capacity 74-76 Operating information 77-79 Compliance Section 80 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 $1-$2 Schedule of Findings and Responses 83 3 INTRODUCTORY SECTION www.eityofc11ubbuck.us 5160 Yellowstone, PO Sox 5604 Chubbuck, ID 83202 (208) 237-2400 phone (208) 238-2371 fax MAYOR Kevin England March 28, 2017 COUNCIL MEMBERS Josh Ellis Annette Baumeister Melanie Evans Ryan Lewis 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 governinents with an annual budget that exceeds two hundred fifty thousand dollars submit copies of their audited finattcial 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 repotl for the City of Chubbuck for the fiscal year ended September 30, 2016. 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 umnodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2016. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD &A) inunediately 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 14,517) 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 54,255. The City is located in Bannock County with.a 2014 estimate census population of 82,839, 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 goverment. Policy-making and legislative authority are vested in a governing council (City Council) consisting of the Mayor and.four other members, all elected on a non-partisan basis. The Council is responsible for passing ordinances, adopting budget, appointing committees, approval of internal control framework and hiring city management. The Mayor acts as the Chief Executive Officer and oversees the day-to-day operations of the City. The Mayor and. Council members are elected at large for 4 -year terms, with two of the Council members standing for election every two years, The City of Chubbuck provides a full range of services. These services include Public Safety (police; fire, animal control, and building inspection); Environmental Health (sanitation, water, waste water treatment and storm water management); Transportation (street & highway maintenance and traffic engineering); Recreational (parks and recreation), Neighborhood Quality (engineering, planning and development,. community services) and Administration (mayor/council, finance, elections, human resources, legal risk management, and information technology). In addition to general government activities, the Mayor and City Council exercise, or have the ability to exercise, oversight of the Chubbuck Development Authority, a legally separate corporation. Therefore, its activities are included as a :separate component unit in the reporting entity. The annual budget serves as the foundation for the City of Chubbuck's financial planning and control. After reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests during May. The Chief Financial Officer and Mayor are responsible for preparing a draft budget for the Council. The budget is prepared by fund,function and activity, and includes information on the past year, current year estimates and requested appropriation for the next fiscal year. Prior to August 1, the City's Chief Financial Officer and the Mayor submit the proposed budget to the City Council for review. The City Council holds public hearings and may add to, subtract from or change the proposed budget, but may not change the form of the budget. Prior to August 30, the budget is legally enacted through passage of the annual appropriation ordinance (not in excess of the proposed budget) by the City Council. Expenditures may not exceed budgeted appropriations at the fund level. City management can legally amend or transfer appropriations within individual funds but not between funds which requires the approval of the City Council in a budget amendment, which follows a public notice, public hearing and amended ordinances adoption process similar to the adoption of the original budget. Budgets are integrated into the accounting system to facilitate management control during the year. The Council reviews service levels for all departments prior to entertaining budget requests for the next fiscal year. Revenue projections receive equal attention and the Council makes budget decisions sufficient to balance the budget against projected revenues. Cash balances and budget to actual trends are monitored monthly. The preparation of the comprehensive annual financial report was made possible by the dedicated service of the entire staff of the City and, in particular, the Clerk's Office. Each member of these departments has our sincere appreciation for the contributions made in the preparation of this project. Credit also must be given to the Mayor and the City Council for their support for maintaining high standards of professionalism in the management of the City of Chubbuck's finances. Respectfully submitted March 28, 2017 Rich Morgan City Clerk Daniel Christensen Finance Clerk CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2016 Title Name Elected Officials Mayor Kevin England Council President Josh Ellis Council Member Annette Baumeister Council Member Melanie Evans 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 Scott Gummersall Financial Officer Dan Christensen City Planner Paul Andrus Police Chief Randy Severe Computer Information Systems Sergei Tomin Parks & Recreation Bill Guinn Fire Chief Merlin Miller M Deaton & Company, Chartered Certified Public Accountants — - 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208)232-5825 Members of Idaho Society of Certified Public Accountants Members of American Institute of Certified Public Accoantams 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, 2016, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America, this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, the aggregate remaining fund information, and the respective budgetary comparison for the General Fund, the Street Fund and the other major special revenue funds of the City of Chubbuck, as of September 30, 2016, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and pension schedules on pages 13-22, 48-49 and 51-52, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide 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 and budgetary comparison schedule - nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements 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 2015 audited financial statements and, in our report dated March 24, 2016, 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 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2017, 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 27, 2017 City of Chubbuck Management's Discussion and Analysis For the Year Ended September 30, 2016 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, 2016. 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 $45,574,121 (net position). • The governments net position increased by $6,013,045. Approximately 41 percent of this increase, $2,439,268, 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 $1,957,195 or 34 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $282,348, and operating expenses increased by $140,313. 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 a decrease of $169,612. (Including compensated absences). The decrease was primarily due to the reduction of bonds and notes payable. • 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. 13 The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All changes in the assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g. uncollected taxes and earned but unused compensated absences). 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 and Highway, Streets, and Road Fund, which are the City's two major governmental funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund date for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget of its general fund, major funds, and its non -major funds. Budgetary comparison schedules have been provided for these funds to demonstrate compliance with these budgets. The basic governmental fund financial statements may be found on pages 23-27 of this report. 14 Proprietary Funds. The City of Chubbuck maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Chubbuck uses enterprise funds to account for its Water department, Waste Water department, and Sanitation department. Internal service funds are an accounting device used to accumulate 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 28-29 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 32-33 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 34-47 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. 15 Government -wide Financial Analysis As noted earlier, net position may serve over time as useful indicator of government's financial position. In the case of the City of Chubbuck, assets exceeded liabilities by $45,574,121 as of September 30, 2016. The largest portion of the City of Chubbuck's net position is reflected in its net investment in capital assets (e.g., land, building, equipment, improvements, work -in -process and infrastructure), less accumulated depreciation and any debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide service to citizens; consequently these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Below is a summary of the City of Chubbuck's Net Position statement. ASSETS Current and other assets Capital assets Total assets DEFERRED OUTFLOWS Pension City of Chubbuck's Net Position Governmental Activities Business Activities Total 2016 2015 2016 2015 2016 2015 $ 5,014,785 $ 3,883,153 $ 37,108,205 $ 35,593,792 $42,122,990 $ 39,476,945 32,474,465 30,834,759 10,585,895 9,854,253 43,060,360 40,689,012 37,489,250 34,717,912 47,694,100 45,448,045 85,183,350 80,165,957 1,166,662 648,919 467,663 256,190 1,634,325 905,109 LIABILITIES Long-term Ilabilitesoutstanding 20,060,527 19,542,587 17,827,932 18,624,421 37,888,459 38,167,008 other liabiiites 575,247 258,964 1,806,367 2,013,713 2,381,614 2,272,677 20,635,774 19,801,551 19,634,299 20,638,134 40,270,073 40,439,685 DEFERRED INFLOWS Pension 699,852 895,233 273,529 353,432 973,481 1,248,665 NET POSITION Net investment in captial assets 11,138,839 10,137,975 6,814,991 6,086,514 17,953,830 16,224,489 Restricted - - 166,731 165,181 166,731 165,181 Unrestricted 6,181,447 4,532,072 21,272,113 18,460,974 27,453,56022,993,046 Total net position S 17,320,286 14,670,047 28,253,835 24,712,669 45,574,121 _ 39,382,716 An additional portion of the City of Chubbuck's net position $166,731, represent resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $27,453,560, may be used to meet the governments' ongoing obligation to citizens and creditors. As of September 30, 2016, 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, 92 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 41-43 of the notes to financial statements. 16 Governmental activities. Governmental activities' key elements are broken down in the following charts. Government activities increased net position by $2,650,239 and business -type activities increased net position by $3,541,166. The City of Chubbuck's direct charges to users of governmental services made up $510829. 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 2016, include the fire department and police department and accounts for $4,548,753. The second largest portion of expenditures is the building inspection and street department which accounts for $1,686,979. General government accounts for $896,297 in expenditures. Below is summary of the City of Chubbuck's Changes in Net Position. REVENUES Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenue: Property taxes and sales tax other taxes other Total Revenues EXPENSES General government Public safety Building inspection and street Parks and recreation Health, welfare, and other Water Sewer Sanitation CiAW WC Authority Total expenses NET CHANGE IN NET POSITION NET POSITION beginning Prior Period Adjustment NET POSITION ending City of Chubb>i des Changes in Net Position Governmental Activities Business Activities Total 2016 2015 2016 2015 2016 2015 $ 615,597 $ 540,839 $ 8,611,310 $ 7,996,521 $ 9,226,907 $ 8,537,360 43,890 48,000 - 11,328 43,890 59,328 2,667,268 916,767 - 2,667,268 916,767 5,366,613 5,296,480 - - 5,356,613 5,296,480 1,510,898 1,22%159 1,510,898 1,220,159 875,756 136,693 86,100 2,630 961,856 139,323 11,080,022 8,158,938 8,697,410 8,010,479 19,777,432 16,169,417 8996,297 542,495 - - 896,297 542,495 4,548,754 4,387,453 - - 4,548,754 4,387,453 1,686,979 1,697,764 - - 1,686,979 1,697,764 591,638 529,372 - 591,638 529,372 97,080 41,171 - - 97,080 41,171 - - 1,793,535 1,781,501 1,793,535 1,781,501 - 2,319,135 2,200,476 2,319,135 2,200,476 - - 1,221,934 1,060,218 1,221,934 1,060,218 609,036 2,930 - - 609,036 2,930 8,429,784 7,201,185 5,334,604 5,042,195 13,164,388 12,243,380 2,650,238 957,753 3,362,806 2,968,284 6,013,044 3,926,037 14,670,047 13,829x609 24,712,669 21,744,385 39,382,716 35,573,994 - (117,315) 178,360 178,360 (117,315) $17,320,286 $14,670,047 $28,253,835 $24,712,669 $45,574,121 $ 34,382,716 M1 Revenue by Source - Government Activities Charges for services 18 is and - 13,890 Expenses and Program Revenues — Governmental Activities S,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 K. XII -A 40 0 IN C� N� Expenses Revenue • The majority of the City of Chubbuck's governmental activities' revenue is received from property and sales tax (48 percent). This amount would be 62 percent of the revenue received without this fiscal year's capital grants contributions from Chubbuck Development Authority. • When all taxes are added together, they make up 90 percent of the budget. • When revenues are compared to expenses, it shows that none of the City of Chubbuck's programs are self supporting. They all require tax support to continue at their current level of service. For the most part, increases in expenses closely paralleled inflation and growth in the demand for services. No significant transaction occurred outside of the Major funds for fiscal year 2016. No significant losses or revenues were received during the year. The major fund in the City is the general fund. Significant transactions within the general fund this year mainly consisted of payments of personnel, law enforcement expenses, fire department expenses, and street maintenance. 19 Business -type activities. Businesses -type activities' key elements are broken down in the following charts. Revenue by Source - Business Type Activities Gain from sale of assets Expenses and Program Revenue - Business Type Activities 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 gain from sale of assets (1 percent). When revenues are compared to expenses, it shows that all of the City of Chubbuck's programs are self-supporting. ME 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 $3,976,232. Of which $3,410,321 of this total is unassigned fund balance (86 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 greater than operating expenditures. Due to other financing sources and uses, the net change in the general fund increased $314,814 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 37 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: $6,045,924, Sewer: $11,429,074, and Sanitation: $3,383,189. The water fund had an increase in net position of $990,410; the sewer fund had an increase in net position of $1,383,703; and the sanitation fund had an increase in net position of $845,703. General Fund Budgetary Highlights The City made no revisions to the original appropriations approved by the City Council. The general fund actual revenues were less than budget, and expenses were less than budget. The difference accounts for a $314,814 increase in the general fund balance. The major variance in expenditures was due to an increase in the law enforcement and health and welfare expenditures. The highway, streets and roads fund actual revenues were more than budget, and expenses were more than budget. The difference accounts for a $143,415 increase in the highway, streets, and roads fund balance. The major variance in expenditures was due to an increase in personnel, street signing and capital outlays. 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, 2016 amounts to $43,060,360 (net of accumulated depreciation). This investment in capital assets includes land, machinery, equipment, other improvements, and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year was $4,302,351. The increase in assets includes contributions from the Chubbuck Development Authority of $2,439,268. 21 City of Chubbuck's Capital Assets Additional information on the City of Chubbuck's capital assets can be found in note 8 on page 41 of this report. Long -terra debt. At the end of the current fiscal year, the City of Chubbuck had total debt outstanding of $37,888,459. Of this amount, $14,445,385 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 $1,326,198 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 $14,360,999 on September 30, 2016. Therefore $14,360,999 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 41-43 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Mayor and City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400. 22 Govemmpntal Activities 8uslnpss Aetivitles Total 2016 2015 2016 2015 2016 2015 Land $ 266,080 $ 266,080 $ 948,382 $ 616,672 $ 1,214,462 $ 882,752 8ullding & Imp. 3,792,356 3,792,356 6,540,055 6,356,428 10,332,411 10,148,784 Machinery & Equip. 4,259,068 4,116,471 7,353,841 7,588,170 11,612,909 11,704,641 Infrastructure 9,566,986 8,405,865 - - 9,566,986 8,405,865 Work in Progress 2,165,937 831,331 594,626 - 2,760,563 831,331 CIA W WCA; WIP - 18,569,419 - - - 18,569,419 Land 386,226 - - 386,226 - infrastructure 18,183,193 - - 18,183,193 - Office Equipment - 17,125 51,625 51,625 51,625 Water Rights - 2,421,167 2,421,167 2,421,167 2,421,167 Total $ 38,619,846 $ 35,981,522 $ 17,875,196 $ 17,034,462 $ 56,529,542 $ 53,015,584 Additional information on the City of Chubbuck's capital assets can be found in note 8 on page 41 of this report. Long -terra debt. At the end of the current fiscal year, the City of Chubbuck had total debt outstanding of $37,888,459. Of this amount, $14,445,385 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 $1,326,198 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 $14,360,999 on September 30, 2016. Therefore $14,360,999 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 41-43 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Mayor and City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400. 22 ASSETS Current assets Cash and cash equivalent Property taxes receivable Intergovernmental receivables Prepaid expenses 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, 2016 Governmental Business -type Activities Activities Development Total Authority $ 4,340,682 $ 18,266,918 $ 22,607,600 $ 2,662,082 275,315 - 275,315 39,180 320,105 - 320,105 - 73,439 - 73,439 - 5,244 700,984 706,228 - 5,014,785 18,967,902 23,982,687 2,701,262 381,759 - Accrued bond interest - 166,731 166,731 - - 308,274 308,274 -17,665,298 Current portion of bonds payable 17,665,298 - 38,619,846 17,875,196 56,495,042 - (6,145,381) (7,289,301) (13,434,682) - 32,474,465 28,726,198 61,200,663 - 37,489,250 47,694,100 85,183,350 2,701,262 1,166,662 467,663 1,634,325 - LIABILITIES 1,326,198 - 15,548,388 Current liabilities 108,853 2,113,611 844,493 Accounts payable 173,992 335,545 509,537 12,606 Accrued payroll 330,851 50,908 381,759 - Accrued bond interest - 8,299 8,299 - Current portion compensated absences 70,404 27,214 97,618 - Current portion of bonds payable - 127,355 127,355 - Current portion of long-term debt - 948,772 948,772 - Water deposits - 308,274 308,274 - 575,247 1,806,367 2,381,614 12,606 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 - 1,326,198 - 15,548,388 281,618 108,853 2,113,611 844,493 17,665,298 - 20, 060, 527 17,827,932 1,326,198 - 15, 548, 388 - 390,471 - 2,958,104 - 17,665,298 - 37,888,459 - 20,635,774 19,634,299 40,270,073 12,606 699,852 273,629 973,481 - 11,138,839 6,814,991 17,953,830 - - 166,731 166,731 - 6,181,447 21,272,113 27,453,560 2,688,656 $ 17,320,286 $ 28,253,835 $ 45,574,121 $ 2,688,656 23 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2016 Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION PRIOR PERIOD ADJUSTMENT ENDING NET POSITION $ (5,103,029) $ 3,276,706 $ (1,826,323) $ (2,623,028) 5,366,613 Program Revenues Total 199,194 - 199,194 - Operating Capital Net - 90,432 - Charges for Grants and Grants and (Expense) Development - Expenses Services Contributions Contributions Revenue Authority 7,839,367 2,430,222 Functions/Programs 3,362,806 6,013,044 (192,806) 14,670,047 24,712,669 39,382,716 Primary Government: Governmental activities: General government $ 896,297 $ 365,049 $ - $ - $ (531,248) $ - Law enforcement 3,188,508 28,918 20,290 - (3,139,300) - Fire control 1,360,246 211,041 - - (1,149,205) - Building inspection 199,277 - - - (199,277) - Street 1,487,702 - - 2,439,268 951,566 - Parks and recreation 591,638 10,589 - - (581,049) - Health and welfare 76,884 - - - (76,884) - Otherspecialfunds 20,196 - 23,600 - 3,404 - CIAWWC Authority 609,036 - - 228,000 (381,0 - 8,429,784 615,597 43,890 2,667,268 (5,103,0 - Business -type activities Water 1,793,535 2,783,945 - - 990,410 - Sewer 2,319,135 3,657,738 - - 1,338,603 - Sanitation 1,221,934 2,169,627 - - 947,693 - 5,334,604 8,611,310 - - 3,276,706 - Total primary government $13,764,388 $ 9,226,907 $ 43,890 $ 2,667,268 $ (1,826,323 $ - Component Unit: Chubbuck Development Authority $ 2,623,028 $ 2,623,028 $ 2,623,028 $ 2,623,028 General Business -type Development Activities Activities Total Authority Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION PRIOR PERIOD ADJUSTMENT ENDING NET POSITION $ (5,103,029) $ 3,276,706 $ (1,826,323) $ (2,623,028) 5,366,613 5,366,613 2,355,384 199,194 - 199,194 - 1,311,704 - 1,311,704 - 90,432 - 90,432 74,838 19,282 86,100 105,382 - 766,042 766,042 - 7,753,267 86,100 7,839,367 2,430,222 2,650,238 3,362,806 6,013,044 (192,806) 14,670,047 24,712,669 39,382,716 2,881,462 178,360 178,360 - $17,320,286 $ 28,253,835 $ 45,574,121 $ 2,688,656 24 See accompanying notes to financial statements 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 $6,145,381. Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds Property tax Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the fund: Deferred outflows of resources related to pensions Deferred Inflows of resources related to pernsions (from pension schedule) Internal service funds are used to charge the costs of certain activities, such as employee health Insurance and equipment maintenance to individual funds. The assets and liabilities of the Internal services funds applicable to governmental activities are included in governmental activities in the statement of net position. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Accrued compensated absences Net pension liability Advance payable Net position of governmental funds 25 See accompanying notes to financial statements 32,474,465 30,834,759 108,968 117,921 1,166,662 648,919 (699,852) (895,233) 354,338 (281,618) (274,752) (2,113,611) (1,377,467) (17,665,298) (17,890,368) $ 17,320,286 16,293,828 CITY OF CHUBBUCK, IDAHO BALANCE SHEET GOVERNMENTALFUNDS SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2015 Highway, Streets, CIAWWC Other General and Roads Authority Governmental Fund Fund Fund Funds Total 2015 ASSETS Cash $ 1,991,118 $ 1,370,234 $ $ 565,911 $ 3,927,263 $ 3,285,213 Accounts receivable 5,244 - - - 5,244 2,582 Property and sales taxes receivable 258,806 16,509 - - 275,315 319,439 Intergovernmental receivables 151,135 168,970 - - 320,105 275,919 Prepaid expense 73,439 - - - 73,439 - $ 2,479,742 $ 1,555,713 $ - $ 565,911 =6601,366 $ 3,883,153 =1=4 LIABILITIES Accounts payable $ 90,608 $ 24,303 $ $ - $ 114,911 $ 88,290 Accrued payroll 280,739 50,112 - 330,851 101,986 Accrued compensated absences 57,163 13,241 70,404 68,688 428,510 87,656 - 516,166 258,964 DEFERRED INFLOWS OF RESOURCES Unavailable revenues - taxes 94,037 14,931 - 108,968 117,921 94,037 14,931 - 108,968 117,921 FUND BALANCES Committed - - - 565,911 565,911 554,175 Unassigned 1,957,195 1,453,126 - - 3,410,321 2,952,093 1,957,195 1,453,126 565,911 3,976,232 3,506,268 $ 2,479,742 $ 1,555,713 $ - $ 565,911 $ 3,883,153 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 $6,145,381. Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds Property tax Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the fund: Deferred outflows of resources related to pensions Deferred Inflows of resources related to pernsions (from pension schedule) Internal service funds are used to charge the costs of certain activities, such as employee health Insurance and equipment maintenance to individual funds. The assets and liabilities of the Internal services funds applicable to governmental activities are included in governmental activities in the statement of net position. Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Accrued compensated absences Net pension liability Advance payable Net position of governmental funds 25 See accompanying notes to financial statements 32,474,465 30,834,759 108,968 117,921 1,166,662 648,919 (699,852) (895,233) 354,338 (281,618) (274,752) (2,113,611) (1,377,467) (17,665,298) (17,890,368) $ 17,320,286 16,293,828 'r-M[DrN WO P, CO CD C3 0 to WON0N ' ' OO 00 h QMM Q 00 COhO(D QCD CD 0 C Mh WM W Mtn CRMO co (!)M ((7 CD r� CD M V W O N (D W O M oc "t r V r V w CA r CJ Q ((7 0) (q r W P -L ([7 N )0 O W til N CT Q f` W co co V M M M V' �[) W 0) 00 Lo h r ''•"NM N O m CD rnNC) CD 6)hhM �M O O N V r m"1 f0 m'd' OmQ h 00 V' e» M 7 'tl' V N (D r N LO r h N r r h M Cl) 64 69 w V W O0)(D r ONOOM(D 't co Ohr'V'O (OhON ©MM V w N m O O Y N W 0) V m M Q CD Q O (D m Q) N M 00 O W O M Co 00 M LO CO CD co Cl) .6 ((7 .^^ h 0) W r N Q W� m m O N (D Oct r r Q W LL7 m N 6) M O Cn 131 m Q N N N m m rW I - MW L7OMNd7M a0M (0M(D MOQ M NMm 0) m co hQrN m hm r W n(D C0M h M rM V' NN (p O h r0 M r eM- N N N W (f) 07 N r M N Cl) N V ((1 01 C ,L] h N r r- h Cl) Cl) O � � U L W Z„ d mM co c0)) „ M C T r gN ti d to (I) M M (() (D A Q Q E C N m M r W N r r (��i (D a R' ( O LL (z (n z LU y) 69 LL Z W F LLLI N w i i „ i , p i s i e i p , o „ i , , , i : O G to Z m a U' a fl rn m m rn a OQ (w0 G N M N N N Q U Z a j LL N N N N YzmWw U 6v w 6q R LL in W N W a 2 7 w W N h i Q, i , i i a i s , : , i T , , , i( i ' Q Q d' N N xHr2O T 'a � V MM Pi o (q u7 h �04 4D C3 zww p C IT (ND NO M tl M N N T o iM1 LL- w w LL L [Y (D W((7 M ( M M0 CL > 0p„>aN LM CLL r r W C7 yW. }Q- x (° (a (» U W w 0 F W w 0 Ch' W0)M0O ON ' oOm v CDC ' It ' ' G ' 'fl ' MM V' m 0) 0) Vr (C) Cl) (D LO O CD co 0) Q a0 LO (() (D u7 0 r W C) l,l,l r N cl CC? r N O oc 'I 0) M Lq N (D cc 'r"' O m N r cq M LL. 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Q 4Y •N ry a N E@ �N, m p E E c e c @ U j p p U U Q N C w D Q c EO ¢ 0 Q d V 0 0 O i4 v F- to @ Q o w v z E a N CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2015 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 157,350 $28,253,835 28 internal internal Service Service Water Sewer Sanitation Total 2015 Funds 2016 Funds 2015 ASSETS Current assets Cash and cash equivalents $ 6,234,153 $ 8,454,137 $3,401,449 $18,089,739 $ 16,543,701 $ 590,598 $ - Accounts receivable 278,515 283,399 139,070 700,984 706,674 - - 6,512,668 8,737,536 3,540,519 18,790,723 17,250,375 590,598 - Noncurrent assets Restricted assets Bond reserves 166,731 - - 166,731 165,181 - Utility deposits 306,384 1,640 250 308,274 287,868 Advance to Joint venture - 17,665,298 - 17,665,298 17,890,368 - - Capital assets 9,865,153 4,667,766 3,082,634 17,615,553 16,774,418 259,643 259,643 Accumulated depreciation (2,509,161) (3,147,711)_ (1,381,787) (7,038,659) (6,940,230) 250,642 (239,578) 7,829,107 19,186,993 1,701,097 28,717,197 28,177,605 9,009 20,065 14,341,775 27,924,529 5,241,616 47,507,920 45,427,980 599,599 20,065 DEFERRED OUTFLOWS Pension 215,384 175,359 76,920 467,663 256,190 - - LIABILITIES Current Liabilities Accounts payable 68,345 203,773 34,597 306,715 391,865 87,911 5,705 Payroll payable 22,936 18,698 9,274 50,908 35,937 - - Accrued compensated absences 12,852 12,852 1,510 27,214 26,934 - - Current portion of bonds payable 127,355 - - 127,355 122,355 Accrued interest 5,251 - 3,048 8,299 4,554 Current portion of long-term debt 18,304 852,545 77,923 948,772 1,138,495 - Deposits 306,384 1,640 250 308,274 287,868_ - - 561,427 1,089,508 126,602 1,777,537 2,008,008 87,911 5,705 Noncurrent Liabilities Revenue bonds payable, net unamortized premium 1,326,198 - - 1,326,198 1,453,554 - - Note payable 182,077 14,445,386 920,925 15,548,388 16,519,321 - - Compensated absences 51,406 51,406 6,041 108,853 107,732 - - Net pension liabilities 390,755 316,015 137,723 844,493 543,814 - - 1,950,436 14,812,807 1,064,689 17,827,932 18,624,421 - - 2,511,863 15,902,315 1,191,291 19,605,469 20,632,429 87,911 5,705 DEFERRED INFLOWS Pension 130,583 100,989 42,057 273,629 353,432 - - NET POSITION Net investment in capital assets 5,702,058 667,510 701,999 7,071,567 5,898,393 9,001 20,065 Restricted for bond service 166,731 - - 166,731 165,181 - - Unrestricted 6,045,924 11,429,074 3,383,189 20,858,187 18,634,735 502,687 (5,705) $ 11,914,713 $12,096,584 $4,085,188 28,096,485 $ 24,698,309 $ 511,688 $ 14,360 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 157,350 $28,253,835 28 CITY OF CHUBSUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015 OPERATING REVENUES Service revenue Revenue used as security for revenue bond: Charges for services OPERATING EXPENSES Salaries and wages Personnel benefits Repairs and maintenance Supplies and tools Travel, meetings, and training Fuels and lubricants Telephone and communications Utilities Treatment - Pocatello Other purchased services Professional services Bad debt Depreciation OPERATING INCOME NONOPERATING REVENUE (EXPENSE) Interest expense Gain (Loss) from asset disposal CAPITAL CONTRIBUTIONS Developer contributions CHANGES IN NET POSITION BEGINNING NET POSITION PRIOR PERIOD ADJUSTMENT ENDING NET POSITION 990,410 1,383,703 845,703 10,923,150 10,535,674 3,239,485 1,153 177,207 $ 11,914,713 $12,096,584 $ 4,085,188 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net position of business -type activities 29 11,328 11,328 3,219,816 2,979,702 497,328 (11,418) 21,718,607_ 14,360 25,778 142,990 $ 3,362,805 See accompanying notes to financial statements $ 24,698,309 $ 5111688 $ 14,360 Internal Internal Service Service Water Sewer Sanitation Total 2015 Funds 2016 Funds 2015 $ 1,330,392 $ 3,657,738 $ 1,770,425 $ 6,758,555 $ 6,353,951 $ 1,146,181 $ 66,761 1,453, 553 1,453,553 1,575.9 2,783,945 3,657,738 1,770,425 8,212,108 7,929,860 1,146,181 66,761 642,844 510,690 217,991 1,371,525 1,255,438 - - 255,315 196,666 96,098 548,079 539,771 269,791 6,475 334,762 101,046 336,215 774,023 982,506 15,316 8,770 45,767 15,485 71,379 132,631 137,862 14,212 8,940 10,290 2,406 1,479 14,175 9,069 686 1,405 10,695 3,102 32,088 45,885 57,213 24,761 26,586 4,944 3,785 3,785 12,514 10,514 - - 168,127 32,377 3,786 204,290 196,435 15,107 14,938 - 1,334,004 - 1,334,004 1,070,411 - - 19,036 - 15,022 34,058 18,088 - 38,994 21,507 14,859 75,360 150,162 297,915 4,718 4,392 1,434 10,544 8,352 - - 202,529 83,675 137,214 433,418 412,650_ 11,065 11,065 1,738,021 2,319,135 933,350 4,990,506__ 4,848,471 648,853 78,179 _ 1,045,924 1,338,603 837,075 3,221,602 3,081,389 497,328 (11,418) (55,514) (32,372) (87,886) (115,546) - 45,100 41,000 86,100 2,530__ (55,514)_ 45,100 8,628 (1,786) (113,0151 990,410 1,383,703 845,703 10,923,150 10,535,674 3,239,485 1,153 177,207 $ 11,914,713 $12,096,584 $ 4,085,188 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds Change in net position of business -type activities 29 11,328 11,328 3,219,816 2,979,702 497,328 (11,418) 21,718,607_ 14,360 25,778 142,990 $ 3,362,805 See accompanying notes to financial statements $ 24,698,309 $ 5111688 $ 14,360 M N W A W Z m LL r F- � N W F- M (n O � w w CL �Omw Y�LU a >- m 3: G7 Lu ca O _ XU- a a Z w LL 0 U) LL W a U pmO H UJ w W > W O Q O U 2 F- , CN U7 , i 1 e 1 1 1 1 1 1 r i � N O ti N uNt(DDo r 'a6 �. N 3 LL (O r l f r QO ' t co co U N LQ [p O) C7 Q O = r V- f!i 46% if)MI� 000 000)LOm NON ODf-Mo) N co I— O It r Lo f+ co M (D LO CO LO CO 00 to r r- -Up C c- 63 N N (0 r_ (4 CV O - n O (6 V- (D m Q N O r co 0) f+ CD N co M00 r"V W �t (D M i� N r M N m t0 r r U). 69 IYOOCritO OOO N V I-- 00 O M U-)D)NM f�(oN c" 0 O (D M N O OO M O Lo Lo O r r r �- (D ti Cl) I- I- N_ COc- LO Y M C �' (D (D ti r-:0�7• 00 6 N 00 (D N 00 N r M r r N r (6 00 �i 0LON� hr L (0 h O LO 0) I d' r "t_C� 00000 0) 00 V Ln a� rn ti (1) CF) of ai r r IT IT r(t3 N 64 (Drop. 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O V Z (n m M T o = 4 L fn W LL (n M 69 EA 0 U) Z U�JOw U0wOQ� m �Nt -ti co Lo Z [- W U G✓CM N W w9ZCL o N N N W LL 0 W LLQ N CL U w w W F- F- U W Q U Z Q O U Z z LUZ 1- 0 O W CD N . ��• c O W © uvi > cu WLL 0 00 N C N U w a -0 � E W O m'L—0c'>�� � OZ� 2xa) ��0 oO O � 2O 2 l0 .0 C z U1 o N a z -rQ •N v c0irovo x 1- UU C c c¢ vQdQl W Q O fl, t 0 0- U Z 0W,. w ui 0 w Z C (D E N B w Ru �U C ro 0 a; 0 c m E C CL E 0 U m 9) w CITY OF CHUBBUCK, IDAHO STATEMENT OF FIDUCIARY NET POSITION RECREATIONAL PROGRAMS FUND SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2015 Assets Cash Liabilities Accounts payable Net Position Held in trust for recreation programs 32 Recreation Programs Trust Fund 2016 2015 $ 77,547 $ 61,506 77,'547 61,506 $ 77,547 $ 61,506 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF CHANGES IN FIDUCIARY NET POSITION RECREATIONAL PROGRAMS FUND FOR THE YEAR ENDED SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015 Additions Contributions: Registration fees Sponsorships Total additions Deductions Director's compensation Boy's baseball Girl's softball Tee/tiger ball Other expenses Total deductions Change in net position Net position - beginning of the year Net position - end of the year 33 Recreation Programs Trust Fund 2016 $ 67,845 13,683 81,528 5,500 27,096 20,410 11,676 805 65,487 16,041 61,506 $ 77,647 See accompanying notes to financial statements 2015 $ 65,855 16,381 82,236 4,500 35,723 20,102 12,069 72,394 9,842 51,664 $ 61,506 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 14) NOTE 1 - .Summar of Significant Accounting Policies The City's financial statements comply with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements within the codification. The government -wide financial statements, including the enterprise funds and the fund financial statements for the proprietary funds, are also under GASB codification. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. Applicable GASB statements have been implemented through GASB 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 GASS 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 three-member board governs the Chubbuck Impact Area Wastewater Collection Authority with one member representing Bannock County, one member representing the City of Pocatello and one member representing the City of Chubbuck, The City of Chubbuck provides loans to the Authority with no interest or maturity date. Outstanding balance of loans to the authority at year- end totaled $17,665,298. 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, 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, 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 14) NOTE 1 - Summary of Significant Accoijntln_gL PoliciesfContinuedj B. Basis of Presentation (continued) Fund Financial Statements Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting 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 f=unds General Fund The General Fund is the general operating fund of the City and is always classified as a major fund. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Highway, Streets, and Roads Fund The Highway, Streets, and Roads Fund accounts for revenue and expenditures used for the construction and maintenance of the highways, streets, and roads. It is a major fund, Special Revenue Funds Special Revenue f=unds 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 Central Garage Each fund Is allocated the costs of operations based on equipment maintenance and repairs to their departments. Self-insured Employee Health Insurance Each fund contributes to this fund based on actuarial estimates. These contribution are needed to pay medical claims incurred by employees of each fund. C. Measurement Focus and Basis of Accounting Measurement focus is a term used to describe "which" transactions are recorded within the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Net Position and the Statement of Activities, both governmental and business -like activities are presented using the economic resources measurement focus as defined In item b. below. 35 CITY OF CHUSBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 14) 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, highway, streets and roads, and special revenue funds. All annual appropriations lapse at fiscal year end. Each month the City prepares a financial report that reflects the actual and budgeted financial data. A strict purchase order system is used in controlling and maintaining expenditures within budget categories. This data is reviewed by the City Council. The City does not use the encumbrance method of accounting. E. Cash and Cash Equivalents For the purpose of the Statement of Net Position, "cash and cash equivalents" includes all demand, savings accounts, certificates of deposits, and state Investing pools of the City, For the purpose of the proprietary fund Statement of Cash Flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. F. Property, Plant, and Equipment The accounting treatment for property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. Government -wide Statements In the government -wide financial statements, fixed assets are accounted for as capital assets. All fixed assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated fixed assets which are recorded at their estimated fair value at the date of donation. Estimated historical cost was used to value the majority of the assets acquired prior to September 30, 2003. Governmental fund Infrastructure assets were not capitalized prior to October 1, 2003 0i CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 14) NOTE 3 - Summary of Significant Accounting Polictes (Continued) F. Property, Plant, and Equipment (Continued) 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 Equipment Vehicles Fund Financial Statements 20-30 years 15-25 years 10-12 years 5-7 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. L Comparative datalreclassifications Comparative total data for the prior year has been presented in the fund financial statements in order to provide an understanding of the changes in assets and operations of these funds. Also, certain amounts presented in the prior year data have been reclassified in order to be consistent with the current year's presentation. J. Compensated Absences The City's policies regarding vacation time permit employees to accumulate earned but unused vacation leave. The liability for these unpaid compensated absences is recorded as long-term debt in the government -wide statements. The current portion of this debt is estimated based on historical trends. In the fund financial statements, governmental funds report only the compensated absence liability payable from expendable available financial resources, while the proprietary funds report the liability as it is incurred. kyA CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL_ STATEMENTS (PAGE 5 OF 14) NOTE 1 - Summary of Significant Accounting Policies (Continued) 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. 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 toldeductions from Base Plan's fiducalary 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 contriubtions) are reconized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 38 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 14) NOTE 2 - Legal Comnliance - 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 excersied 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 Pavable from Restricted Assets Assets have been set aside for special items and are restricted for that purpose. Restricted resources are used only after the unrestricted resources are depleted. To date cash has been restricted for the following items: Proprietary Bond reserves Utility deposits Total $ 166,731 308,274_ $ 475,005 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 $308,274 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, $275,315 in outstanding property taxes were expected to be collected and remitted by the County. 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 $ 475,005 Unrestricted 22,607,600 $ 23,082,605 Fiduciary Fund: Cash $ 77,547 $ 77,547 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 $23,160,152 and the bank balance was $19,720,531. 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 $3,338,975. 39 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 14) NOTE 5 - Cash and Cash Equivalents and Investments (Continue 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 $ 2,662,082 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 $2,662,082. 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 poets 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 IL At year-end the carrying amount and bank balance of CIAWWCA's deposits (cash and certificates of deposit) was $0. At year-end, all the Authority's deposits were held in a financial institution. All deposits were guaranteed by the Federal Deposit Insurance Corporation and were not subject to custodial credit risk. NOTE 6 - Receivables All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging delinquent balance report. Historically 100% of property taxes have been collected, therefore, there is no allowance for uncollectible property tax receivables. Receivables as of year-end for the City's business -type funds are as follows: Water Sewer Sanitation Total Accounts Receivables $ 321,655 $ 320,974 $ 164,480 $ 807,109 Allowance for Doubtful Accounts (43,140) (37,575) (25,430) (106,125) $ 278,515 $ 283,399 $ 139,070 _L_700 984 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. 40 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 14) NOTE 7 - Concentration of Credit Risk (Continued) Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Exclusive of the State of Idaho LGIP, the City's deposits in any one issuer does not represent a concentration of total credit risk. The funds in the State of Idaho LGIP are in a variety of investments which are required to have an A quality credit rating or better. The City is subject to credit risk on deposits in banks that exceed the FDIC maximum insured balance amount. Additionally, the City grants credit to customers In the City for utility service. This extension of credit potentially subjects the City to credit risk. NOTE 8 - Chances in Fixed Assets A summary of general fixed assets at year end is as follows: Nondepreclable assets Land Water Rights Work in process Office Equipment Buildings and Improvements Vehicles and Equipment Accumulated Depreciation NOTE 9 - Long-term Debt and Accrued Compens Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: $ 616,672 Beginning $ 948,382 Ending - Balance Additions Deletions Balance Nondepreciable assets 594,626 51,625 - 34,500 Land $ 266,080 $ $ - $ 266,080 Work in process 831,331 1,688,357 353,751 2,165,937 Infrastructures 8,405,865 1,161,121 - 9,566,986 Buildings and Improvements 3,792,356 - - 3,792,356 Vehicles and Equipment 4,116,471 276,749 134,152 4,259,068 CIAWWCA: Land 386,226 - 386,226 Infrastructure 18,183,193 - 18,183,193 35,981,522 3,126,227 487,903 38,619,846 Accumulated Depreciation _ 5,146,763 11128,097 129,479 6,145,381 $ 30,834,759 $ 1,998,130 358,424 $ 32,474,465 A summary of proprietary type fixed assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Nondepreclable assets Land Water Rights Work in process Office Equipment Buildings and Improvements Vehicles and Equipment Accumulated Depreciation NOTE 9 - Long-term Debt and Accrued Compens Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: $ 616,672 $ 331,710 $ $ 948,382 2,421,167 - 2,421,167 - 594,626 594,626 51,625 - 34,500 17,125 6,356,427 183,628 - 6,540,055 7,588,170 66,160 300,489 7,353,841 17,034,061 1,176,124 334,989 17,875,196 7,179,808 444,482 334,989 7,289,301 $ 9,854,253 $ 731,642 $ - $ 10,585,895 Governmental Business -!y $ 70,404 $ 27,214 281,618 108,853 L 52 3.022 i 136.067 The City's long-term debt is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: As of year end, the governmental fund had no long-term debt. 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 14) NOTE 9 - Long-term Debt and Accrued Com ensation Continued Business -type acllvities: In 2006, the City refinanced a construction fine 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 $ 18,304 Noncurrent portion _ 182,077 $ 200,381 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. Outstanding DEQ line of credit at zero percent Interest, with biannual payment of $5,499 for 20 years, and a maturity date of November 1, 2030. Loan closed April 22, 2010. $ 159,583 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. 7,780,508 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. 7,233,741 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. 124,098 $ 15,297,930 Less current portion 852,545 Noncurrent portion $ 14,445,385 The Water Revenue Bonds, Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of $110,330. The bond carries interest rates between 2 and 4.75% and a maturity date of September 1, 2026. Bonds Payable: Water Revenue Bond Less current portion Noncurrent portion Net Premium Principal Total $ 73,553_ $ 1,380,000 $ 1,453,553 73,553 1,380,000 1,453,553 120,000 127,355 5 fi6.198 260,000_ 1.326.198 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 of $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 entirely on May 6, 2013. Note 2 was prematurely paid off on June 25, 2015. Notes Payable: Balance Note 1 $ Note 2 - Note 3 998,848 998,848 Less current portion 77923 Noncurrent portion _L__920 925 42 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 14) NOTE 9 - Long-term Debt and Accrued Com ensation Conllnued 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 Compensated absences Business -type activities Bonds payable Notes payable Compensated absences MOTE 10 - Pension Plan Plan Description: Governmental Activities Business -type Activities____ Principal _. Interest Princi ai Interest $ $ $ 1,068,932 $ 86,727 1,077,312 79,746 1,080,811 72,965 1,089,432 65,593 1,098,180 57,941 5,597,008 161,013 4,350,656 1,382 _ 2,514,829 - $ $ - $ 17,877,160 $ 525,367 Beginning Ending Due within Balance Additions Reductions Balance one year $ 343,440 $ 434 425 $ 425,843 $$ 352,022 $ 70,404 $ 343,440 $ 434,425 $ 425,843 $ 352,022 $ 70 404 Long-term portion _1_2811 ,618 Beginning Ending Due within Balance Additions Reductions Balance one year $ 1,495,000 $ $ 115,000 $ 1,380,000 $ 120,000 17,657,816 1,160,656 16,497,160 948,772 134,666 108,541 107,140 136,067 27,214 $ 19,287,482 $ 108,541 —1-1,282 ,796 $ 18,013,227 $ 1,095,986 Long-term portion 16,917,241 The City contributes to the Base Plan which is a cost-sharing multiple -employer defined benefit pension plan administerd by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, Its agencies and various participating political subdivisions, The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits: The Base Plan provides retirement, disability, dealth 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 policelfirefighters) of the average monthly salary for the highest consecutive 42 months. 43 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL_ STATEMENTS (PAGE 11 OF 14) NOTE 10 - Pension Ptan_{Continued 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 Prive 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, 2016 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 $484,308 for the year ended September 30, 2016. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30,2016, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2016, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At June 30, 2016, the City's proportion was .1459240 percent. For the year ended September 30, 2016, the City recognized pension expense (revenue) of $519,625. At September 30, 2016, the City reported deferred outflows of resources and deferred inflows of resources relatedto pensions from the following sources: [referred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 1,439,769 $ 294,753 Changes in assumptions or other inputs 65,757 - Net difference between projected and actual earnings on pension plan investments - 672,727 Changes in the employer's proportion and differences between the employees contributions and the employer's proportionate contributions 121 194 City contributions subsequent to the measurement date 128,673 - $ 1,634,320 $ 967,674 $128,673 was reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending, September 30, 2016. 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, 2015 the beginning of the measurement period ended June 30, 2016 is 4.9 and 5.5 for the measurement period June 30, 2015 years. 44 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 14) NOTE 10 - Pension Pian (Continued) 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, 2016: 2017 2018 2019 2020 Actuarial Assumptions: $ 3,006 3,006 343,190 188,843 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, 2016 actuarial valuation was determined using the following actuarial assumptions, applied to all periods Included in the measurement: 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 mate 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 for the period July 1, 2007 through June 30, 2013 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, 2005 through June 30, 2013, The Total Pension Liability as of June 30, 2016 is based on the results of an actuarial valuation date of July 1, 2016. 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. 45 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 14) NOTE 10 - Pension Plan (continued) The best -estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of January 1, 2016. Capital Market Assumptions Expected Expected Strategic Strategic Asset Class Return Risk Normal Ran es Equites Broad Domestic Equity 9.15% 19.00% 70% 55% 66%-77% 50%-65% International 9.25% 20.20% 15% 10%-20% Fixed Income 3.05% 3.75% 30% 23%-33% Cash 2.25% 0.90% 0% 0%_5% Expected Expected Expected Real Expected Total Fund Return Inflation Return Risk Actuary 7.00% 3.25% 3.75% NIA Portfolio 6.5a% 2.25% 4.33% 12.67% 'Expected arithmetic return net of fees and expenses Actuarial Assumptions Assumed Inflation — Mean 3.26% Assumed Inflation —Standard Deviation 2.00% Portfolio Arithmetic Mean Return 8.42% Portfolio Long -Term Expected Geometric Rate of Return Assumed Investment Expenses 7.50% 0.40% Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 7.10% Discount hate: 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°/x) Employer's proportionate share of the net pension liability (asset) $ 5,802,749 $ 2,958,104 $ 592,466 46 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 14) NOTE 10 - Pension Plan (continued) Pension pian 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.porsi.idaho.gov. Payables to the pension plan: At September 30, 2016, the City reported payables to the defined benefit pension plan of $18,255 for legally required employer contributions and $11,770 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. The City has established a Health Insurance Fund for insuring benefits provided to City employees and covered dependents which is included in the Internal Service Funds. Health benefits were self-insured up to a specific stop loss amount of $50,000, and an aggregate stop loss of $1,462,265 for 2016. Coverage from a private insurance company is maintained for losses in excess of the aggregate stop loss amount. All claims handling procedures are performed by a third party claims administrator. Incurred but not reported claims have been accrued as a liability based upon the claims administrator's estimate. The estimated liability does not include any allocated or unallocated claims adjustment expense. All funds fo the City participate in the program and make payments to the Health Insurance Fund based on actuarial estimates of the amounts needed to pay prior and current year claims, The claims liability of $84,401 reported as accounts payable and accruals in the Health Insurance Fund is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements Indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. NOTE 12 - Subsequent Events Subsequent events were evaluated up to March 24, 2016, the date the financial statements were available to be issued. NOTE 13 - Other Postemplovment Benefits The City complies with Idaho's requirements under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The liability under state requirements related to other 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 a work in process projected asset's cost expensed the prior year but was not recognized in accordance with the City's asset recognition policy. The cost increased the statement of not position and statement of activities within the business -type activities by $178,360. REQUIRED SUPPLEMENTARY INFORMATION 48 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERALFUND YEAR ENDED SEPTEMBER 30, 2016 Resources General property taxes and sales tax Franchise fees State sales and liquior taxes Parks revenue Licenses, permits and fines Grants Fire protection and prevention Leases and rents Interest income Charges for services Other resources Amounts available for appropriations Charges to appropriations General government Law enforcement Fire control Building inspection Parks and recreation Health and welfare Capital outlays Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from sale of assets Transfer in (out) NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) $ 4,093,942 $ 4,093,942 $ 4,730,419 $ 636,477 237,000 237,000 199,194 (37,806) 500,000 500,000 449,234 (50,766) 6,100 6,100 7,629 1,529 661,000 661,000 289,199 (371,801) - - 20,290 20,290 175,000 175,000 211,041 36,041 120,000 120,000 75,850 (44,150) 75,000 75,000 90,432 15,432 32,000 32,000 2,960 (29,040) 471,617 471,617 37,268 (434,349 6,371,659 6,371,659 6,113,516 (258,143) 926,230 926,230 574,204 352,026 2,943,076 2,943,076 2,960,661 (17,585) 1,315,504 1,315,504 1,213, 866 101,638 180,201 180,201 181,199 (998) 571,827 571,827 513,091 58,736 68,456 68,456 76,884 (8,428) 366,365 366,365 290,250 76,115 6,371,659 6,371,659 5,810,155 561,504 - - 303,361 303,361 - - 11,453 11,453 - - 11,453 11,453 - - 314,814 314,814 - - 1,642,381 1,642,381 $ - $ - $ 1,957,195 $ 1,957,195 49 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2016 Resources Property taxes Highway user's revenue Highway HB 312 user's revenue Miscellanous revenue Road and bridge Amounts available for appropriations Charges to appropriations Salaries and personnel benefits Supplies Utilities Building maintenance Professional services Street signing and marking Street construction and maintenance Equipment maintenance Capital outlays Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from sale of assets Budgeted Amounts Original Final $ 650,010 $ 650,010 475,000 475,000 23,847 23,847 100,000 100,000 1,248,857 1,248,857 Actual $ 645,147 524,122 139,882 2,381 198,467 1,509,999 Variance Positive (Negative) $ (4,863) 49,122 139,882 (21,466) 98,467 261,142 649,500 649,500 729,475 (79,975) 5,500 5,500 7,860 (2,360) 6,500 6,500 7,569 (1,069) 7,000 7,000 12,988 (5,988) 10,000 10,000 14,541 (4,541) 128,500 128,500 145,113 (16,613) 371,107 371,107 338,543 32,564 70,750 70,750 80,038 (9,288) - - 42,957 42,957 1,248,857 1,248,857 1,379,084 (130,227) - - 130,915 130,915 - - 12,500 12,500 - - 12,500 12,500 NET CHANGE IN FUND BALANCE - - 143,415 143,415 BEGINNING FUND BALANCE - - 1,309,712 1,309,712 ENDING FUND BALANCE $ - $ - $ 1,453,126 $ 1,453,126 50 Schedule of Employer's Share of Net Pension Liability PFRSI - Base Plan Last 10 - Fiscal Years* 2016 2015 Employer's portion of the net pension liability U.UU14bU24 U.UU14V3UI'L% Employer's proportionate share of the net pension liability $ 2,958,104 $ 1,921,281 Employer's covered -employee payroll $ 4,536,572 $ 4,198,217 Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll 65% 46% Plan fiduciary net position as a percentage of the total pension liability 87.26% 91.38% * GASB Statement No. 68 requires ten years of information to be presented in this table, However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available Data reported is measured as of June 30, 2016 51 Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years * GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. Data is reported as a measurement of Fiscal Year 2016. M 2016 2015 Statutorily required contribution $ 488,619 $ 477,246 Contributions in relation to the statutorily required contribution $ 470,364 $ 468,694 Contribution (deficiency) excess $ (18,255) $ (8,552) Employer's covered -employee payroll $ 4,536,572 $ 4,198,217 Contributions as a percentage of covered -employee payroll 10.37% 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 will present information for those years for which information is available. Data is reported as a measurement of Fiscal Year 2016. M CITY OF CHUBBUCK, IDAHO NOTES TO REQUIRED SUPPLEMENTARY INFORMATION SEPTEMBER 30, 2016 NOTE 1 - EXPENDITURES IN EXCESS OF BUDGET GENERALFUND Law Enforcement The City had expenditures in excess of budget of $17,585 due to an increase in law enforcement equipment purchases and maintenance expenditures. These expenditures were paid using unspent revenues from other departments. Health & Welfare The City had expenditures in excess of budget of $8,428 due to an increase in health and welfare expenditures. These expenditures were paid using unspent revenues from other departments. Highway. Streets, and Roads The City had expenditures in excess of budget of $87,270 due to the purchase of additional highway and street assets and maintenance cost. These expenditures were paid using unspent revenues from other departments. :1K3 OTHER SUPPLEMENTARY INFORMATION 54 LOU') 2 ■ \ L / L 0 a 2 % 0 LL U z + m 2 a@ (0 / m � c c C) 2 U / CL Cl) � A 7 � + 60- � s�[ m /ƒ%a% LO 2k� LO r >JU- � a � $ # # Q & qL 2 a a LOU') 2 Q U) 2 -J C2 U # 0 ) 2 a@ � ¢ \� E ® §® U U LOU') Ch LCI V Qz J a m ❑ z D Li.. z (0 LLI(nN {9 ❑ a a�� o T Z LL w QU-�m ❑❑ate ,z W d m�wO LU U ❑ Z LLZUJ o oLU a >- 0 Lu UJ Z zZ w > 0 LL LL 0 I` Z LL1 2 W Q U) L (7 N N (D (D (D Ln T C) cY) M M f� T UJ (D M 0) P- T 07 yam. C (Ii oD T C7 O T df L N M N N T � 1O Ip r N m Z LL1 O LL ❑ a U Z z m LL ❑ (tT Eft m C) ' O (D CDo d ti T N wom U rL 0Z a z LL z(D Y� co(Drn00�co co c� c ` M M C0 aO V T CD D N NT '- M CD w Ul z m M � ff3 N CNN d WT (D CD �0LL O. Efi 64 r M m M CN O O N -a M m V LQ OC co d' 7 C co co T T C4 T Gb r, ti Li °1 o C c LO cri > LL Ul � T T D C: Q c T T L L 3 T V (fr 64 P VJ LL! 0 z W N m Z LL1 U ❑ a U Z m LL ❑ a Z m C w LL ❑ N wom U rL 0Z a z LL z(D °z" z z c� LU c c U Z Z LU K 0 W W Z w Ul z m LLL P CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2015 ASSETS Current assets Cash and cash equivalents Noncurrent assets Restricted assets Capital assets Accumulated depreciation LIABILITIES Current Liabilities Accounts payable Noncurrent Liabilities NET POSITION Employee Central Health Garage Insurance Fund Fund 2016 Totals 2015 Totals $ - $ 590,598 $ 590,598 $ - - 590,598 590,598 - 259,643 - 259,643 259,643 (250,642) - (250,642) (239,578) 9,001 - 9,001 20,065 9,001 590,598 599,599 20,065 3,510 84,401 87,911 5,705 3,510 84,401 87,911 5,705 3,510 84,401 87,911 5,705 Net investment in capital assets 9,001 Unrestricted (3,510) 506,197 9,001 20,065 502,687 (5,705) $ 5,491 $ 506,197 $ 511,688 $ 14,360 57 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2016 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2015 OPERATING EXPENSES Personnel benefits Employee 263,001 269,791 Central Health 15,316 - Garage Insurance 2016 2015 Fund Fund Totals Totals OPERATING REVENUES - 686 1,405 Service revenue $ 79,068 $1,067,113 $1,146,181 $ 66,761 79,068 1,067,113 1,146,181 66,761 OPERATING EXPENSES Personnel benefits 6,790 263,001 269,791 6,475 Repairs and maintenance 15,316 - 15,316 8,770 Supplies and tools 14,212 - 14,212 8,940 Travel, meetings, and training 686 - 686 1,405 Fuels and lubricants 24,761 - 24,761 26,586 Utilities 15,107 - 15,107 14,938 Professional services - 297,915 297,915 - Depreciation 11,065 - 11,065 11,065 87,937 560,916 648,853 78,179 OPERATING INCOME (LOSS) (8,869) 506,197 497,328 (11,418) CHANGES IN NET POSITION (8,869) 506,197 497,328 (11,418) BEGINNING NET POSITION 14,360 - 14,360 25,778 ENDING NET POSITION $ 5,491 $ 506,197 $ 511,688 $ 14,360 58 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 20'16 Budgeted Amounts Original Final Resources Variance Actual Positive Amounts (Negative) 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 23,600 (56,400) Other resources 40,000 40,000 8,332 (31,668) Amounts available for appropriations 146,900 146,900 31,932 (114,968) Charges to appropriations Street guarantee fund 19,100 19,100 - 19,100 Juvenile referral fund 500 500 - 500 Court fund 42,100 42,100 1,500 40,600 Road projects fund 1,200 1,200 - 1,200 Parks fund 84,000 84,000 18,696 65,304 Total charges to appropriations 146,900 146,900 20,196 126,704 NET CHANGE IN FUND BALANCE - - 11,736 11,736 BEGINNING FUND BALANCE - - 554,175 554,175 ENDING FUND BALANCE $ - $ - $ 565,911 $ 565,911 59 See accompanying notes to financial statements STATISTICAL SECTION .c 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 62-66 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 67-73 These schedulers contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 74-76 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 77-79 1 hese schedules contain service and lntrastructure 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. 61 m np v� m H 00 ' V N A n DD 'ca f •u "' m .Qs m n uMi "' n Pi il! 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Volumetric charge for circuit breaker: $.80 per 1,000 gallons metered water, NIA Ten Largest Water System Customers For The Fiscal Year Ended September 30,2016 per 1,000 gallon used of Total Top Ten % of Total Customer Business Type Consumers Usage Circle Inn Trailer Park Mobile Home Park 9,003 15.3% 1.0% Pine Ridge Idaho LLC Apartment Complex 7,236 12.3% 0.8% Pine Ridge JC LLC* Shopping Center 6,930 11.7% 0.8% Camelot Trailer Park Mobile Home Park 6,525 11,1% 0.7% Idaho Central Credit Union Banking 5,140 8.7% 0.6% Shiv Shakti Hospitality LLC Lodging 4,295 7.3% 0.5% Pheasant Ridge HOA Inc. Residential Development 4,258 7.2% 0.5% Pine Ridge JC LLC* Shopping Center 4,100 6.9% 0.5% Wal Mart Retail 4,012 6.8% 0.5% MK & M LLC Total Top Ten Consumers Total Usage *Part of multiple units Mobile Home Park 78 7,535 12.8% 0.8% 59,034 100.0% 888,143 2.2% City of Chubbuck Statistical Information Sewer Fund September 30, 2016 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue $ 3,657,738 Schedule of Sewer Rates Monthly Base Fee Regular Circuit Breaker Residential $ 44,95 $ 39.46 NWSI Residential 10.45 - Commercial rate for businesses North of the Interstate is $6.343 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $7.223 per $1,000 gallons of water used. NWSI Commercial rate is winter water average usage divided by $5.85 and multiplied by $10.45. 79 COMPLIANCE SECTION ;N Deaton & Company, Chartered � ,v, Certified Public Accountants`" ._ 215 North 9th, Suite A Pocatello, Idaho 83201-5278 {! (208) 232-5826 Members of Idaho Society of Certified Public Accountants Off V as M Members ofAnrerican Instilule of Cerlified PubiicAccountonts REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business -type activities, each major fund, and the aggregate remaining fund information of City of Chubbuck, as of and for the year ended September 30, 2016, 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 27, 2017. Internal Control Over Financial Re orcin In planning and performing our audit, we considered City of Chubbuck's internal control over financial reporting (internal control) to determine that 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 the City of Chubbuck's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. 81 Compliance and _Other Matters As part of obtaining reasonable assurance about whether City of Chubbuck's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho March 27, 2017 82 CITY OF CHUBBUCK, IDAHO SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED SEPTEMBER 30, 2016 Findings Of Significant Deficiency And Responses No findings noted 83 From: vivian.yuk@usbank.com Sent: Tuesday, March 21, 2017 11:20 AM To: Dan Christensen Cc: Richard Morgan Subject: Annual Audited FS/Operating Data for Disclosure for City of Chubbuck Water Rev Bds Ser 2011 Hi Dan, Please deliver the Annual Audited FS/Operating Data for Disclosure to me which will be due on 3/29/17. If I don't receive by noon on 3/29/17, per the Disclosure Agreement, Agent shall file failure notice. Thanks, Your early response would be greatly appreciated. Please do not hesitate to call me if you have any questions. Vivian Yuk Trust Review Analyst p. 206.344.4657 1 f. 206.344.4632 1 vivian.yuk@usbank.com U.S. Bank Global Corporate Trust Services 1420 5th Avenue 7th Floor, Seattle, WA 98101 1 PD-WA-T7CT I www.usbank.com We put the power of US to work for you For security reasons, U.S. Bank Global Corporate Trust Services requests that if customer confidential information is included in your email, please utilize the Cisco Registered Envelope Services (CRES) Secure Mail system if sending customer confidential information to U.S. Bank. U.S. BANCORP made the following annotations Electronic Privacy Notice. This e-mail, and any attachments, contains information that is, or may be, covered by electronic communications privacy laws, and is also confidential and proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Instead, please reply to the sender that you have received this communication in error, and then immediately delete it. Thank you in advance for your cooperation. From: craig.ferguson@usbank.com Sent: Wednesday, March 29, 2017 9:39 AM To: Dan Christensen Cc: vivian.yuk@usbank.com Subject: Published Submission Confirmation -City of Chubbuck Water Rev Bds Ser 2011 Hello, D.S. Bank, National Association, has provided the 09/30/2016 Annual Audited Financial Statements for the above referenced issue via electronic transmission to Electronic Municipal Market Access (http://emma.msrb.org) on Wednesday, March 29, 2017. If you should have any questions, please feel free to contact me at 206-344-4649. Craig Ferguson Control Specialist p. 206.344.4649 I f. 206.344.4630 1 craig.ferguson@usbank.com U.S. Bank Global Corporate Trust Services 1420 5th Avenue, 7th Floor, Seattle, WA 98101 1 PD-WA-T7CT I www.usbank.com ----- Forwarded by Craig D Ferguson/WA/USB on 03/29/2017 08:37 AM ----- From: EMMANotifications@msrb.org To: craig.ferguson@usbank.com Date: 03/29/2017 08:35 AM Subject: Published Submission Confirmation Your Continuing Disclosure Submission has been published. SubmissionId: ER816280 Disclosure Type: FINANCIAL/OPERATING FILING Audited Financial Statements or CAFR (Rule 15c2-12) for the year ended 09/30/2016 Document Name: Financial Operating Filing dated 03/29/2017 2016 Disclosure Report CAFR Sept.pdf posted 03/29/2017 11:28:09 AM The following issuers are associated with this continuing disclosure submission: CUSIP6 State Issuer Name 171259 ID CHUBBUCK IDAHO WTR REV The following 10 Securities have been published with this continuing disclosure submission: Security: CUSIP - 171259BA1, Maturity Date - 09/01/2017 Security: CUSIP - 171259BB9, Maturity Date - 09/01/2018 Security: CUSIP - 171259BC7, Maturity Date - 09/01/2019 Security: CUSIP - 171259BD5, Maturity Date - 09/01/2020 Security: CUSIP - 171259BE3, Maturity Date - 09/01/2021 Security: CUSIP - 171259BFO, Maturity Date - 09/01/2022 Security: CUSIP - 171259BG8, Maturity Date - 09/01/2023 Security: CUSIP - 171259BH6, Maturity Date - 09/01/2024 Security: CUSIP - 171259B72, Maturity Date - 09/01/2025 Security: CUSIP - 171259BK9, Maturity Date - 09/01/2026 Please follow the link to view this submission: http://emma.msrb.org/ContinuingDisclosureView/ContinuingDisclosureDetails.asp x?submissionId=ER816280 Please follow the link to make changes to this submission: http://dataport.emma.msrb.org/AboutDataport.aspx PLEASE DO NOT REPLY. This is a system -generated e-mail. If you need assistance please contact the MSRB at 202-838-1330 or you may obtain more information at www.msrb.org. U.S. BANCORP made the following annotations Electronic Privacy Notice. This e-mail, and any attachments, contains information that is, or may be, covered by electronic communications privacy laws, and is also confidential and proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Instead, please reply to the sender that you have received this communication in error, and then immediately delete it. Thank you in advance for your cooperation.