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HomeMy WebLinkAbout1996Jones, Yost, Hatt, Erickson & Co. CITY OF CH TBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1996 CITY OF CHUBBUCK ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1996 TABLE OF CONTENTS Page Numbers Independent Auditor's Report Report on Compliance 4 Report on Internal Control Structure 5 General Purpose Financial Statements.- Combined tatements: Combined Balance Sheet - All Fund Types and Account Groups 7 Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - All Governmental Fund Types 9 Combined Statement of Revenue, Expenses, and Changes in Retained Earnings, Reserves - All Proprietary Fund Types 10 Statement of Cash Flows - All Proprietary Fund Types 1 I Statement of Revenue and Expenditures - Budget and Actual: General Fund 12 Special Revenue Funds 13 Capital Project Funds 14 Proprietary Fund Types: Statement of Changes in Fixed Assets 15 Notes to Financial Statements 16 OTHER STATEMENTS AND SCHEDULES Statement of Expenditures - Budget and Actual, General Fund 27 Combining Balance Sheet - Special Revenue Funds 29 Combining Statement of Revenue, Expenditures, and Changes in Fund Balance - Special Revenue Funds 30 Combining Balance Sheet - Capital Project Funds 31 Combining Statement of Revenue and Expenditures - Capital Project Funds 32 Combining Balance Sheet - Enterprise Funds 33 Combining Statement of Revenue, Expenses, and Changes in Retained Earnings and Reserves - Enterprise Funds 35 Statistical Section: Ten Year Summary of Tax Levies 37 c It �h SCOTT N. JONES, CPA KENT L. YOST, CPA, JD MORGAN J. HATT, CPA STACY L. ERICKSON, CPA Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Jones, Yost, Hatt, Erickson & Co, CERTIFIED PUBLIC ACCOUNTANTS P.O. SOX 4987 Pocatello, Idaho 83205 Independent Auditor's Report MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants We have audited the accompanying general purpose financial statements of the City of Chubbuck, Idaho, as of September 30, 1996, and for the year then ended. These general purpose financial statements are the responsibility of City management. Our responsibility is to express an opinion on these general purpose financial statements based on our audit. We conducted our audit in accordance with generally accepted auditing standards and Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that we plan and conduct the audit to obtain reasonable assurance about whether the general purpose financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the general purpose financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall general purpose financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the general purpose financial statements referred to above present fairly, in all material respects, the financial position of the City of Chubbuck, Idaho, as of September 30, 1996, and the results of its operations and changes in cash of its proprietary funds for the year then ended in conformity with generally accepted accounting principles. Our audit was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The combining, individual fund financial statements and schedules listed in the table of contents are presented for purposes of additional analysis and are not a required part of the general purpose financial statements of the City of Chubbuck. This information has been subjected to the auditing procedures applied in the audit of the general purpose financial statements and, in our opinion, is fairly stated in all material respects in relation to the general purpose financial statements taken as a whole. �b7t,LO JONES, T, HATT, ERICKSON R CO. Pocatello, Idaho, April 20, 1997. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 e FAX 208/233-5010 Jko SCOTT N. JONES, CPA KENT L. YOST, CPA, JD MORGAN J. HATT, CPA STACY L. ERICKSON, CPA Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Jones, Yost, Hatt, Erickson & Co. CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 4987 Pocatello, Idaho 83205 MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Compliance Report Based on an Audit of General Purpose Financial Statements Performed in Accordance with Government Auditing Standards We have audited the general purpose financial statements of the City of Chubbuck, Idaho, as of and for the year ended September 30, 1996, and have issued our report thereon dated April 20, 1997. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. Compliance with laws, regulations, contracts, and grants applicable to the City of Chubbuck, Idaho, is the responsibility of City management. As part of obtaining reasonable assurance about whether the general purpose financial statements are free of material misstatement, we conducted tests of the City's compliance with certain provisions of laws and regulations. However, the objective of our audit of the general purpose financial statements was not to provide an opinion on overall compliance with such provisions. Accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance that are required to be reported herein under Government Auditing Standards. This report is intended for the information of the City of Chubbuck, and its audit cognizant agency. However, this report is a matter of public record and its distribution is not limited. �� ' JONES, YlbT, HATT, ERICKSON & CO. Pocatello, Idaho, April 20, 1997. 416 SOUTH 4TH AVENUE • P.Q. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 9 FAX 2081233-5010 c Jkn SCOTT N. JONES, CPA KENT L. YOST, CPA, JD MORGAN J. HATT, CPA STACY L. ERICKSON, CPA Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Jones, Yost, Hatt, Erickson & Co. CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 4987 Pocatello, Idaho 83205 MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Report on the Internal Control Structure Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards We have audited the general purpose financial statements of the City of Chubbuck, Idaho, as of and for the year ended September 30, 1996, and have issued our report thereon dated April 20, 1997. We conducted our audit in accordance with generally accepted auditing standards and 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 general purpose financial statements are free of material misstatement. The management of the City of Chubbuck, Idaho, is responsible for establishing and maintaining an internal control structure. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of internal control structure policies and procedures. The objectives of an internal control structure are to provide management with reasonable, but not absolute, assurance that assets are safeguarded against loss from unauthorized use or disposition, and that transactions are executed in accordance with management's authorization and recorded properly to permit the preparation of general purpose financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any internal control structure, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the structure to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the effectiveness of the design and operation of policies and procedures may deteriorate. In planning and completing our audit of the general purpose financial statements of the City of Chubbuck, Idaho, for the year ended September 30, 1996, we obtained an understanding of the internal control structure. With respect to the internal control structure, we obtained an understanding of the design of relevant policies and procedures and whether they have been placed in operation, and we assessed control risk in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide an opinion on the internal control structure. Accordingly, we do not express such an opinion. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 • FAX 2081233-5010 i r Honorable Mayor and Members of the City Council Page 2 Our consideration of the internal control structure would not necessarily disclose all matters in the internal control structure that might be material weaknesses under standards established by the American Institute of Certified Public Accountants. A material weakness is a condition in which the design or operation of one or more of the specific internal control structure elements does not reduce to a relatively low level the risk that errors or irregularities in amounts that would be material in relation to the general purpose financial statements being audited may occur and not be detected within a timely period by employees in the normal course of performing their assigned functions. We noted no matters involving the internal control structure and its operations that we consider to be material weaknesses as defined above. This report is intended for the information of the City of Chubbuck, and its Federal agencies. However, this report is a matter of public record and its distribution is not limited. Pocatello, Idaho, April 20, 1997. 6 JONES, Y6,Slf, HATT, njCKS0N & C CITY OF CHUBBUCK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30. 1996 ASSETS: Cash Receivables: Property taxes (Note I -H) State sales tax Highway users tax Inventory phase-out tax Accounts (Note 1-B) State liquor tax Note receivable Amount to be provided for lease purchases Amount to be provided for general obligation bonds Restricted Cash: Construction funds Replacement funds Bond reserve Water meter deposits Fixed assets -net (Note 1-C) Total assets LIABILITIES: Accounts payable Deposits payable Deferred property taxes Capital leases payable General obligation bonds payable Payable from Restricted Cash: Bonds payable - current Accrued bond interest payable Bonds payable - long terns Total liabilities FUND EQUITY: Investment in general fixed assets Retained earnings Contributed capital - net Reserve for debt service Resen,c for replacement funds Fund balance - undesignated Total fund equity Total liabilities and fund equity The accompanying notes are an integral part of these statements. 7 16.580 65,815 93,572 23,732 245.546 10.415 6.070 1.154.771 556,353 324.388 75.620 2.261.041 $381,780 $288.912 $172.705 $5.479.564 $20,085 $86.756 75.620 7.552 95.000 66.775 2.070} 000 27.637 $0 $0 2.394.151 1.349.435 514,065 324.398 897,525 354.143 288.912 172.705 354.143 288.912 172.705 3.085.413 $381.780 $288.912 $172,705 $5.479.564 r 7 Proprictary Govenunental Fund Types -- — Fund Tvpc -- Special Capital General Revenue Project Enterprise Fund Funds Funds Funds $165.596 $288.912 $172.705 $861.845 16.580 65,815 93,572 23,732 245.546 10.415 6.070 1.154.771 556,353 324.388 75.620 2.261.041 $381,780 $288.912 $172.705 $5.479.564 $20,085 $86.756 75.620 7.552 95.000 66.775 2.070} 000 27.637 $0 $0 2.394.151 1.349.435 514,065 324.398 897,525 354.143 288.912 172.705 354.143 288.912 172.705 3.085.413 $381.780 $288.912 $172,705 $5.479.564 r 7 Account Groups General General Totals Fixed Long -Terra (Memorandum Assets Debt Only) - - _ -$1.489.059 16.580 65.815 93.572 '23.732 245.546 10.415 6.070 $293.732 293.732 355.000 355.000 1.154.771 556.353 324.389 75.620 $4.552.730_ 6.813.771 $4.552.730 $648.732 $11.524.423 $0 4.552.730 $293.732 355.000 649.732 — .552.730 $4_»2,730 - - $649.732 $106.941 75.620 7.552 293.732 355.000 95.000 66.775 2.070.000 3.070.520 4.552.730 1.349.435 51.1.065 324.389 897.525 915.760 8.453.903 - $11.524.423 The accompann ing notcs arc an inlcgral pari of these statements. 8 CITY OF CHUBBUCK COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1996 REVENUE: Taxes (Page 12) Licenses and permits Law enforcement Court revenue Interest Donations Miscellaneous Fire protection service Program income Total revenue EXPENDITURES: General government Law enforcement Fire control Parrs and recreation Streets Health and welfare Capital outlay Debt service Total expenditures EXCESS REVENUE OR (EXPENDITURES) OTHER FINANCING SOURCES (USES): Transfers from other funds Transfers to other funds EXCESS (SOURCES/USES) FUND BALANCE - BEGINNING FUND BALANCE - ENDING Governmental Fund Types 306,187 3,077 Special Capital Totals General Revenue Project (Memorandum Fund Funds Funds _ Only) $2,032,754 $219,173 56,865_ - $2,251,927 113,725 0 ,615,132 113,725 78,571 78,571 41,191 41,191 15,815 6,258 $7,683 29,756 27,000 27,000 76,146 2,777 78,923 79,473 79,473 43,620 43,620 2,481,295 228,208 34,683 2,744,186 306,187 3,077 309,264 1,131,370 1,131,370 299,012 299,012 224,128 224,128 389,578 389,578 14,072 14,072 190,843 190,843 56,865_ - - - - 56,865 2,612,055 3,077 0 ,615,132 (130,760) 225,131 34,683 129,054 175,881 3,200 179,081 (14,000) (1752881) (189,881; 31,121 52,450 34,683 118,254 323,072 236,462 138,022 697,506 $354,143 $7-88,912 $-172,705 - - $815,760 The accompanying notes are an integral part of these statements. 9 R CITY OF CHUBBUCK COMBINED STATEMENT OF REVENUE_ EXPENSES_ AND CHANGES IN RETAINED EARNINGS. RESERVES ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30. 1996 Water. Sewer and Garbage Enterprise OPERATING REVENUE: Fund Senice charges $1,837.951 1.837.951 OPERATING EXPENSES Personnel 436.313 Personnel benefits 148,621 Supplies 449.807 Purchased services 749.914 Depreciation _ 120.060 Total operating expenses 1-904.715 OPERATING INCOME (66.764) NONOPERATING REVENUE (EXPENSES): Interest income 130.189 Interest expernse (170.896 Total nonoperating revenue (expenses) (40.707 NET LOSS (107.471) OTHER FINANCING SOURCES (USES): Claim proceeds 399.425 TRANSFERS FROM OTHER FUNDS 107800 RETAINED EARNINGS_ RESERVES: Balance - Beginning 2268.594 RETAINED EARNINGS_ RESERVES: Balance - Ending $2.571.348 The accompanying notes are an integral part of these statements. 10 CITY OF CHUBBUCK, STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30. 1996 The accompanying notes are an integral part of these statements. 11 Water_ Sewer and Garbage Enterprise CASH FLOWS FROM OPERATING ACTIVITIES: Fund Net loss ($107.471) Adjustments to reconcile net income to net cash provided by operating activities] Depreciation 120.060 Decrease in accounts receivable 17.521 Increase in accounts payable 60.784 Increase in deposits payable 5.385 Increase in accrued interest 43.675 Total adjustments _ 247_425 Net cash provided by operating activities 139.954 NON-OPERATING - CLAIM PROCEEDS 399.425 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets (317.458) CASH FLOWS FROM FINANCING ACTIVITIES: Cash transfer 10-800 Bond principal payments (85.000) NET INCREASE (DECREASE) IN CASH 147.721 CASH AT SEPTEMBER 30. 1995 2,8257256 CASH AT SEPTEMBER 30.1996 $2.972.977 The accompanying notes are an integral part of these statements. 11 CITY OF CHUBBUCK STATEMENT OF REVENUE AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND REVENUE: Property taxes Sales tax Inventory phaseout Highway users tax Liquor tax Road and bridge tax Franchise taxes Interest on delinquent taxes Subtotal YEAR ENDED SEPTEMBER 30. 1996 Budget Actual $1.240.480 $1.258.123 235.000 238.505 50.000 80.835 312.000 318.174 25,000 50,404 37.000 34.704 71.000 45.880 10.000 6.129 1.980.480 2.032.754 Law enforcement 73.728 78.571 Court revenue 60.000 41.191 Licenses_ permits_ and fees 85,820 113.725 Interest 15,000 15.815 Miscellaneous 67,087 76.146 Fire Protection Service 80250 79.473 Program income 51.000 43.620 Total revenue EXPENDITURES: General Government Law enforcement Fire control Parks and recreation Streets Health and welfare Capital outlay Debt service Total expenditures EXCESS REVENUE OR (EXPENDITURES) TRANSFERS FROM OTHER FUNDS TRANSFERS TO OTHER FUNDS EXCESS SOURCES (USES) The accompanying notes are an integral part of these statements. 12 2,413;365 2.481.295 418.825 306.187 1,128.424 1.131.370 310.319 299.012 218,373 224,128 556,546 389,578 11.517 14.072 127,800 190.843 56.828 56.865 2.828.632 2.612.055 (415,267) (130.760) 325.267 175.881 ($90.00 $31.121 Variance $17, 643 3.505 30.835 6.174 25.404 (2296) (25.120) (3.871) 52,274 4.843 18.809) 27.905 815 9.059 (777) (7.390) 67.930 112,638 (2,946) 11.307 (5.755) 166.968 (2.555) (63.043) (3 7) 216.577 284.507 (149,386) (14.000) $121.121 CITY OF CHUBBUCK STATEMENT OF REVENUE AND EXPENDITURES BUDGET AND ACTUAL SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, l 996 REVENUE: Local revenue EXPENDITURES: General government EXCESS REVENUES: OTHER FINANCING SOURCES (USES): Transfers from other funds Tranfers to other funds FUND BALANCE - beginning FUND BALANCE - ending The accompanying notes are an integral part of these statements. 13 Budget ----$-I A0_00 Actual Variance $228,208 $3,208 3,077 $6,923 225,131 3,200 $3,200 ($175,000) (175,881) (881) 236,462 $288,912 CITY OF CHUBBUCK STATEMENT OF REVENUE AND EXPENDITURES BUDGET AND ACTUAL CAPITAL PROJECT FUNDS YEAR ENDED SEPTEMBER 30, 1996 REVENUE: Local revenue EXPENDITURES: General government EXCESS REVENUE FUND BALANCE - beginning FUND BALANCE - ending The accompanying notes are an integral part of these statements_ 14 Budget Actual $30,000 $34,683 0 0 34,683 138,022 $172,705 Variance $4,683 CITY OF CHUBBUCK STATEMENT OF CHANGES IN FIXED ASSETS PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1996 ENTERPRISE FUND FIXED ASSETS: Balance at cost - September 30. 1995 Additions Deletions Balance at cost - September 30. 1996 Less accumulated depreciation Balance - net - September 30. 1996 Construction in progress $2.261.041 The accomp.-mvincy notes are an integral part of these statements 15 Storage and Distribution Equipment System Buildings Totals $378.741 $3-418-851 $140.771 $3.938.363 19.947 14.800 34.747 0 0 0 0 398.688 3.418.851 155.571 3.973.110 (244,575) (1,833.378) (72.464) (2.150.417) $154.11') $1.585.473 $83.107 1.822.693 $2.261.041 The accomp.-mvincy notes are an integral part of these statements 15 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1996 1. A. REPORTING ENTITY The City of Chubbuck, Idaho was incorporated on December 6, 1949. For financial reporting purposes, management has considered potential component units. The decision to include a potential component unit in the reporting entity is made by applying the criteria set forth in generally accepted accounting principles, The basic criterion for including a potential component unit within the reporting entity is the governing body's responsibility for financial accountability. Financial accountability is defined as the level of accountability that exists if a primary government appoints a voting majority of an organization's governing board and is either able to impose its will on that organization or there is potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government may also be financially accountable for the governmental organizations that are fiscally dependent on it. Based upon the application of these criteria, the City of Chubbuck has no potential component units. B. FUND ACCOUNTING The accounts of the City are organized on the basis of funds and account groups, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and expenditures, or expenses, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. GOVERNMENTAL FUNDS General Fund - The General Fund is the general operating fund of the City. It is used to account for all financial resources except those required to be accounted for in another fund. PROPRIETARY FUNDS Enterprise Funds - Enterprise Funds are used to account for operations (a) that are financed and operated in a manner similar to private business enterprises - where the intent of the governing body is that the costs (expenses, including depreciation) of providing goods or services to the general public be financed or recovered primarily through user charges, or (b) where the governing body has decided that periodic determination of 1-7 revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes 16 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 B. FUND ACCOUNTING CONTINUED All proprietary funds are accounted for on a cost of services or "capital maintenance" measurement focus. This means that all assets and liabilities (whether current or noncurrent) associated with their activity are included on their balance sheets. Their reported fiind equity (net total assets) is segregated into contributed capital and retained earnings components. Proprietary fund type operating statements present increases (revenues) and decreases (expenses) in net total assets. Due to small amounts of losses, the City does not make an allowance for doubtful accounts in the Water and Sewer Enterprise Funds. C. FIXED ASSETS The accounting= and reporting treatment applied to the fixed assets associated with a fund are determined by its measurement focus All governmental funds are accounted for on a spendiriL, or "financial flow" measurement focus. This means that only current assets and current liabilities are Generally included on their balance sheets. Their reported fund balance (net current assets) is considered a measure of "available spendable resources." Governmental fund operating statements present increases (revenues and other financing sources) and decreases (expenditures and other financing uses) in net current assets. Accordingly, they are said to present a summary of sources and uses of "available spendable resources" during a period. Fixed assets used in governmental fund type operations (general fixed assets) are accounted for in the General Fixed Assets Account Group, rather than in governmental funds. No depreciation has been provided on general fixed assets. Infrastructure is not included in fixed assets. All fixed assets are valued at historical cost or estimated historical cost if actual historical cost is not available. Donated fixed assets are valued at their estimated fair value on the date donated. An account group is not a "fund." It is concerned only with the measurement of financial position, It is not involved with measurement of results of operations. D. BASIS OF ACCOUNTING Basis of accounting refers to when revenues and expenditures or expenses are recognized in the accounts and reported in the financial statements. Basis of accountina relates to the timina of the measurements made, regardless of the measurement focus applied. 17 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 D. BASIS OF ACCOUNTING - CONTINUED All governmental funds are accounted for usim-, the modified accrual basis of accounting=. Their revenues are recognized when they become measurable anu dvailable as net current assets. Expenditures are generally recognized under the modified accrual basis of accounting, when the related fund liability is incurred. All proprietary funds are accounted for using the accrual basis of accounting. Their revenues are recognized when they are earned, and their expenses are recognized when they are incurred. E BUDGETS AND BUDGETARY ACCOUNTING The City follows budgeting procedures as outlined in the Idaho State Code. Budgets are prepared on the modified accrual basis. F. INVENTORY Inventory is expensed when purchased. No provision is made in the financial statements for inventory on hand at year end since said amounts are immaterial. G. TOTAL COLUMNS ON COMBINED STATEMENTS Total columns on the Combined Statements are captioned Memorandum Only to indicate that they are presented only to facilitate financial analysis. Data in these columns does not present financial position, results of operations, or changes in financial position in conformity with generally accepted accounting principles. Neither is such data comparable to a consolidation. Interfund eliminations have not been made in the aggregation of this data. H. PROPERTY TAX Property taxes are levied on the third Monday in September and attach as an enforceable lien on property as of January I . Real taxes are payable in two installments on December 20, and .lune 20, of the following year. Personal taxes are payable in one installment on December 20, The County bills and collects property taxes for the City. Taxes not received within sixty days following year end are deferred. Due to the very high ratio of property taxes collected to tales levied, the City does not male an allowance for uncollectible property taxes. 18 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 2_ CHANGES IN GENERAL FIXED ASSETS Annual Reclassifications Date —Principal.- Balance and Balance 08/01/97 9-30-95 Additions Deletions 9-30-96 Description: 08/01/98 30,000.00 6.600% Land and buildings $1,652,000 $135,637 $1,787,637 Fixtures and equipment 1785 329 1.026,550 $46,786 2,765,093 Totals $3.437.329 $1.162.187 $46.786 $4,552,730 Note: Enterprise fund properties are reported separately and are not included in the above balance at September 30, 1996. 3. GENERAL LONG-TERM DEBT (FIRE STATION BONDS) Issue of August 1, 1990: Due Annual Date —Principal.- Rate Interest Total 08/01/97 $30,000.00 6.500% $24,345.00 $54,345.00 08/01/98 30,000.00 6.600% 22,395.00 52,395.00 08/01/99 35,000.00 6.700% 20,415.00 55,415.00 08/01/00 35,000.00 6.800% 18,070.00 53,070.00 08/01/01 40,000.00 6.900% 15,690.00 55,690.00 08/01/02 40,000.00 6.950% 12,930.00 52,930.00 08/01/03 45,000.00 7.000% 10,150.00 55,150.00 08/01/04 50,000.00 7.000% 7,000.00 57,000.00 08/01/05 50.000.00 7.000% 3.500.00 53,500.00 $355,000.00 $134,495.00 $489,495.00 Bonds retired in 1996 $30,000.00 4. NOTE RECEIVABLE ($6,071.00 Balance): On March 9, 1989, the City of Chubbuck sold property for $90,000.00. The City received $75,000.00 down and the balance will be paid over 10 years with annual payments of $2,441.25 including interest at 10%. 19 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER -30,1996 RETIREMENT PLAN Public Employee Retirement System of Idaho - The Public Employee Retirement System of Idaho (PERSI), a cost sharing multiple -employer public retirement system, was created by the Idaho State Legislature. It is a defined benefit plan requiring that both the member and the employer contribute. Designed as a mandatory system for eligible state and school district employees, the legislation provided for political subdivisions to participate by contractual agreement with PERSI. Financial reports for the plan are available from PERSI upon request After five years of credited service, members become fully vested in retirement benefits earned to date. Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. For each year of credited service, the L annual service retirement allowance is 1.917% or 2.225% (depending upon employee classification) of the average monthly salary for the highest consecutive 42 months. For the year ended June 30, 1996, the required contributions rates, as determined by PERSI, are as follows: Employee Employer General Member 6.97% 11,61% Police/Firefighter Member 8.53% 11.85% The City of Chubbuck's contributions required and paid were $263,060, $233,754, and $195,319 for the three years ended September 30, 1996, 1995, and 1994 respectively. 20 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 6. SUMMARY OF PROPERTY TAX ROLL OPERATION BY YEAR 7. CASH ON HAND, IN BANKS, AND INVESTED All cash and investments are insured or fully collateralized with certificates held by agents in the City's name. CASH BALANCE IN FUNDS: General and Prior 1994 1995 Totals Taxes recievable - Enterprise 2,972,977 Key Bank - MM $3,600.190 September 30, 1995 $10,650 S12,431 $0 $23,081 1995 Gross Levy General - First Security 165,401 1,258,341 1,258,341 Less: 427,952 Cancellations and adjustments 233 -3,716 -3,236 -6,719 Cash received in 1995 - 1996 -9.123 -6.737 -1,242,263 -1,258.123 Taxes receivable - September 30, 1996 $1.760 S 1.978 S 12 842 $16.580 7. CASH ON HAND, IN BANKS, AND INVESTED All cash and investments are insured or fully collateralized with certificates held by agents in the City's name. CASH BALANCE IN FUNDS: General $165,596 Special revenue 288,912 Capital projects 172,705 Enterprise 2,972,977 Key Bank - MM $3,600.190 CASH AND INVESTMENTS: 95.319 Petty cash $170 Checking accounts: General - First Security 165,401 Water Works - Key Bank 262 561 427,952 Investments: Key bank - MM 122,084 State pool 1,633,306 First Security - Trust 1,184,771 Idaho Central Credit Union 73,192 Key Bank - MM 63,396 Key Bank - MM 95.319 Total cash and investments 21 21 3 17� 068068 $3,600,190 8 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 CAPITAL LEASE (446B BACKHOE): CAPITAL LEASE (FIRE TRUCKS): Payment Interest Balance Balance Payment 5.75% Balance Balance $41,645.00 $2,574.00 $23,437.54 10-15-96 $8,727.37 $1,347.66 16,057.83 I0-15-97 8,727.37 923.33 8,253.79 10-15-98 8,727.37 474.58 .00 CAPITAL LEASE (FIRE TRUCKS): CAPITAL LEASE (POLICE CARS): Payment Interest Balance Balance Payment _ 6.5% Balance Balance $41,645.00 $2,574.00 $89,764.64 2-21-97 $25,000.00 $5,954.56 70,719.20 2-21-98 25,000.00 4,691.18 50,410.38 2-21-99 26,000.00 3,343.99 27,754.37 2-21-2000 29, 595.46 1,841.09 .00 CAPITAL LEASE (POLICE CARS): 22 Payment Interest Balance Balance $39,071.00 2-28-97 $41,645.00 $2,574.00 .00 CAPITAL LEASE ( GRADER): Interest Payment 5.48% Balance Balance $141,458.36 7-1-97 $16,533.64 $7,751.92 132,676.64 7-1-98 16,533.64 7,270.68 123,413.68 7-1-99 16,533.64 6,763.07 113,643.11 7-1-2000 16,533.64 6,227.64 103,337.11 7-1-2001 109,000.00 5,662.89 .00 22 X CITY OF CHUBBUCK NOTES TO FINANCIAL. STATEMENTS - CONTINUED SEPTEMBER 30, 1996 SUMMARY OF MATURITIES AND INTEREST ON SEWER REVENUE BONDS BY YEAR Bonds retired in 1996 23 $25,000 Interest Interest Principal Due Due Due Total Year April 1 October 1 October 1 Due 1996 521,150 $25,000 $46,150 1997 $20,400 20,400 25,000 65,800 1998 19,650 19,650 30,000 69,300 I999 18,750 18,750 30,000 67,500 2000 17,850 17,850 30,000 65,700 2001 16,950 16,950 35,000 68,900 2002 15,900 15,900 35,000 66,800 2003 14,850 14,850 40,000 69,700 2004 13,650 13,650 40,000 67,300 2005 12,450 12,450 40,000 64,900 2006 11,250 11,250 45,000 67,500 2007 9,900 9,900 45,000 64,800 2008 8,550 8,550 50,000 67,100 2009 7,050 7,050 55,000 69,100 2010 5,400 5,400 55,000 65,800 2011 3,750 3,750 60,000 67,500 2012 1,950 1,950 65,000 68900 Totals19$ 8,300 $219,450 JM5 000 $L 122.750 Bonds retired in 1996 23 $25,000 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 10 SUMMARY OF WATER FUND CERTIFICATES OF PARTICIPATION ISSUED IN MAY 1995 Payment Date Principal Interest Total 10/01/96 $45,625 00 $45,625.00 04/01/97 $70,000.00 45,625.00 115,625.00 10/01/97 43,437.50 43,437.50 04/01/98 75,000.00 43,437.50 118,437.50 10/01/98 41,093.75 41,093.75 04/01/99 75;000.00 41,093.75 116,093.75 10/01/99 38,750.00 38,750.00 04/01/00 80,000.00 38,750.00 118,750.00 10/01/00 36,250.00 36,250.00 04/01/01 85,000.00 36,250.00 121,250.00 10/01/01 33,593.75 33,593.75 04/01/02 90,000.00 33,593.75 123,593.75 10/01/02 30,781.25 30,781,25 04/01/03 100,000.00 30,781.25 130,781.25 10/01/03 27,656.25 27,65625 04/01/04 105,000.00 27,65625 132,656.25 10/01/04 24,375.00 24,375.00 04/01/05 110,000.00 24,375.00 134,375.00 I0/01/05 20,937.50 20,937.50 04/01/06 120,000.00 20,937.50 140,937.50 10/01/06 17,187.50 17,187.50 04/01/07 125,000.00 17,187.50 142,187, 50 10/01/07 13,281.25 13,281.25 04/01/08 135,000.00 13,281.25 148,28I.25 10/01/08 9,062.50 9,062.50 04/01/09 140,000.00 9,062.50 149,062.50 10/01/09 4,687.50 4,687.50 04/01/10 150.000.00 4.687.50 _154,687.50 $1_460.000.00 $773.437.50 $2,233,437.50 Certificates paid in 1996 24 $40.000.00 CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1996 SUMMARY OF MATURITIES AND INTEREST ON WATER REVENUE BONDS BY YEAR Interest Interest Principal Due Due Due Year Numbers March I September 1 September 1 Total Due 1996 _$00 $0 $0 Q Bonds retired in 1996 $20.000.00 12. DEFERRED COMPENSATION The City is custodian of an employee deferred compensation plan administered by PEBSCO. The plan was created in accordance with Internal Revenue Code Section 457. The plan, available to all employees, allows deferral of salary to future years. Participation in the plan is optional. The deferred compensation is not available to employees until termination, retirement, death or unforseeable emergency. All plan assets are (until paid or made available to the employees or other beneficiary) solely the property and rights of the City subject to the claims of the City's general creditors. Participants' rights under the plan are equal to the fair market value of the deferred account of each participant. The City has no liability for losses under the plan but does have the duty of due care that would be required of an ordinary prudent investor. The City believes that is is unlikely that it will use the assets of the plan to satisfy the claims of general creditors in the future. Investments are managed by the plan's trustee under several investment options made by the participant. At September 30, 1996, $9,662 was deposited with the plan. F 25 r (THIS PAGE INTENTIONALLY LEFT BLANK.) 26 CITY OF CHUBBUCK STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1996 FINANCIAL Salaries Budget Actual Variance LEGISLATIVE: 2,250 2,4_96 _ (246) Salaries $14,400 $14,800 ($400) Purchased services 51300 6,789_(1,489) _ Purchased services 19,700 21,589 (1,889) EXECUTIVE: 194,510 77,220 117,290 Salaries 9,600 9,400 200 Purchased services 1,750 1,750 0 Salaries 11,350 11,150 200 FINANCIAL Salaries 3,900 3,900 0 Supplies 2,250 2,4_96 _ (246) Insurance 6,150 6,396 (246) LEGAL AND AUDIT: 4,187 6,443 (2,256) Purchased services 31,350 25,433 5,917 OTHER GENERAL GOVERNMENT Land purchase 68,300 124,304 (56,004) Personnel benefits 12,700 15,960 (3,260) Insurance 42,439 48,145 (5,706) Utilities 4,187 6,443 (2,256) Building maintenance 22,513 33,191 (10,678) Urban renewal 194,510 77,220 117,290 344,649 305,263 39,386 BUILDING INSPECTION: Salaries 44,500 30,259 14,241 Personnel benefits 13,976 11,982 1,994 Supplies and other 4,050 8,089 (4,039) 62,526 50,330 12,196 ENGINEERING: Salaries 7,000 7,000 0 Supplies and other 4,400 3,330 1,070 11,400 10,330 1,070 STREETS Salaries 141,354 92,919 48,435 Personnel benefits 45,958 39,120 6,838 Supplies 111,650 126,520 (14,870) Purchased services 257,584 131,019 126,565 Capital outlay 7,000 _ 12,000 (5,000) 563,546 401,578 161,968 The accompanying notes are an integral part of these statements. 27 CITY OF CHUBBUCK STATEMENT OF EXPENDITURES - BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1996 The accompanying notes are an integral part of these statements. 28 Budget Actual Variance LAW ENFORCEMENT: Salaries $637,216 $644,491 ($7,275) Personnel benefits 224,874 223,373 1,501 Supplies 142,834 133,043 9,791 Purchased services 68,500 84,657 (16,157) Lease payments 55,000 45,806 9,194 Capital outlay T8,500 10,289 (1,789) 1,136,924 1,141,659 (4,735) FIRE CONTROL: Salaries 152,500 149,485 3,015 Personnel benefits 46,616 44,076 2,540 Supplies 50,950 59,074 (8,124) Purchased services 34,500 21,377 13,123 Lease payments 25,753 25,000 Capital outlay 29,000 26,250 2,750 Debt service 56,828 56,865 (37) 396,147 382,127 14,020 PARKS AND RECREATION: Salaries 57,225 101,473 (44,248) Personnel benefits 18,253 25,516 (7,263) Supplies and repairs 56,550 43,737 12,813 Purchased services 86,345 53,402 32,943 Capital outlay 15,000 18,000 (3,000) 233,373 242,128 (8,755) HEALTH AND WELFARE: Contributions 11,517 14,072 (2,555) Total general fund $2,82_8 632 $2,612,055 $216,577 The accompanying notes are an integral part of these statements. 28 CITY OF CHUBBUCK COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS SEPTEMBER 30. 1996 The accompanying notes are an integral pert of these statements. 29 Juvenile Health Police LID #I Referral Development Insurance Training Fun_ d Fund Fund Fund Fund Total ASSETS: Cash $229858 $1.964 $214_.790 $295 $49.005 $288.912 Total assets $22.858 $1.964 $214.790 $295 $49.005 $288.912 LIABILITIES: Total liabilities $0 SO $0 $0 $0 $0 __.._ FUND EQUITY: Fund balance 22.858 _ 1.964 214.790 295 _ 49.005 288.912 Total find equity 22.858 1.964 214.790 295 49.005 288.912 Total liabilities and fund equity $22.858 $1.964 $214.790 _$295 $49.005 $288.912 The accompanying notes are an integral pert of these statements. 29 CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE. EXPENDITURES. AND CHANGES IN FUND BALANCE SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30. 1996 REVENUE: Judgements Taxes and other Interest Total revenue EXPENDITURES: General government Total expenditures EXCESS REVENUE OR (E)OENDITURES) TRANSFERS (TO) FROM OTHER FUNDS FUND BALANCE - BEGINNING FUND BALANCE - ENDING 1-046 259 221.187 (3.052) 5.691 225.131 (175.881) 3,200 (172.681) 21.812 1.705 169,484 147 43.314 236,462 $22,858 $1.964 $214,790 $295 $49.005 $288.912 The accompanying notes are an imcgral part of these statements. 30 Juvenile Health Police LID #1 Referral Developnnent Insurance Training Fund Fund Fund Fund Fund Total $2.777 $2.777 $199 $218.974 219.173 $1.046 60 2.213 $25 2,914 6.258 1.046 259 221.187 25 5,691 228.208 3.077 3.077 I1 U U 3.077 0 3.077 1-046 259 221.187 (3.052) 5.691 225.131 (175.881) 3,200 (172.681) 21.812 1.705 169,484 147 43.314 236,462 $22,858 $1.964 $214,790 $295 $49.005 $288.912 The accompanying notes are an imcgral part of these statements. 30 CITY OF CHUBBUCK COMBINING BALANCE SHEET CAPITAL PROJECT FUNDS SEPTEMBER 30, 1996 ASSETS: Cash Total assets LIABILITIES: Total liabilities FUND EQUITY: Fund balance Total fund equity Total liabilities and fund equity Road 51,705 99,815 Capital Parks Parks Proj ect 42 41 Funds Fund Fund Total $21,185 $51,705 $99,815 $172,705 $21,185 $51,705 $99,815 $I72,705 $0 $0 $0 $0 21,185 51,705 99,815 172,705 21,185 51,705 99,815 172,705 $21,185 $51,705 $99,815 $172,705 The accompanying notes are an integral part of these statements. 31 CITY OF C14UBBUCK COMBINING STATEMENT OF REVENUE AND EXPENDITURES CAPITAL PROJECT FUNDS YEAR ENDED SEPTEMBER 30, 1996 REVENUE: Interest Donations Total revenue EXPENDITURES: Miscellaneous Total expenditures EXCESS REVENUE OR (EXPENDITURES) OTHER FINANCING SOURCES (USES): Transfers (to) from EXCESS (SOURCES/USES) FUND BALANCE - BEGINNING FUND BALANCE - ENDING Road 0- 0 0 Capital Parks Parks 31,609 Project 92 #1 Funds Fund Fund Total $1,064 $2,010 $4,609 $7,683 27,000 27;000 1,064 2,010 31,609 34,683 0- 0- 0 0 $21,185 1,064 2,010 31,609 34,683 1,064 20,121 .2,010 49,695 31,609 68,206 34,683 138,022 $21,185 $51,705 $99,815 $172,705 The accompanying notes are an integral part of these statements. 32 CITY OF CHUBBUCK COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 1996 ASSETS: Cash Accounts receivable Restricted Cash: Replacement funds Bond and interest reserves Water meter deposits Construction funds Fixed assets Accumulated depreciation Total assets LIABILITIES: Accounts payable Deposits payable Payable from Restricted Assets: Bonds payable - current Accrued bond interest payable Bonds payable - long term Total liabilities FUND EQUITY: Retained earnings Contributed capital Accumulated depreciation Reserve for debt service Other reserves Total fund equity Total liabilities and fiord equity Depreciation Utilities Reserve Fund Fund $520,673 245,546 Sewer Repairs and Replacement Fund $407,865 $148,488 324,388 75,620 1,154,771 4,41 1,458 (2,150,417) $4,582,039 $407,865 $148,488 $86,756 75,620 95,000 66,775 2,070,000 2,3 94,151 $0 $0 1,349,435 942,038 (427,973) 324.388 407,865 148,488 21187,888 407,865 148,488 $47582,039 $407,865 $148,488 The accompanying notes are an integral part of these statements. 33 Sewer Legal Fund Total $341,172 $861,845 245,546 556,353 324,388 75,620 1,154,771 4,411,458 (2,150,417) $341,172 $5,479,564 $86,756 75,620 95,000 66,775 2,070,000 $0 2,394,151 1,349,435 942,038 (427,973) 324,388 341,172 897,525 341,172 3,085,413 $341J72 $5,479,564 The accompanying notes are an integral part of these statements. 34 f CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS AND RESERVES r ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1996 OPERATING REVENUE: Service Charges: Sanitation Water Sewer Internal service charges Total operating revenue OPERATING EXPENSES: Personnel Personnel benefits Supplies Purchased services Depreciation Total operating expenses OPERATING INCOME NONOPERATING REVENUE (EXPENSES): Interest income Interest expense Total nonoperating revenue (expenses) NET INCOME OTHER FINANCING SOURCES (USES): Transfer (to) from other funds Claim proceeds RETAINED EARNINGS - RESERVES: Balance - Beginning RETAINED EARNINGS - RESERVES: Balance - Ending Sewer Repairs Depreciation and Utilities Reserve Replacement Fund Fund Fund $539,443 745,468 497,340 55,700 1,837,951 $0 $0 436,313 148,621 449,807 749,914 120,060 1,904,715 0 0 (66,764) 0 0 90,671 19,237 7,643 (170,896) (80,225) 19,237 7,643 (146,989) 19,237 7,643 112,664 (1,000) 1,708,148 389,628 140,845 $1,673,823 $407,865 S148,_488 The accompanying notes are an integral part of these statements 35 Sewer Enterprise Legal Construction Fund Fund Total $539,443 745,468 497,340 55,700_ $0 $0 1,837,951 436.313 148.621 449,807 749,914 120,060 0 0 1,904,715 0 0 (66,764) 12,638 I30,189 (170,896) 12,638 (40,707) 12,638 (107,471) (70,891) (29,973) 10,800 399,425 399,425 0 29,973 2,268,594 $341,172 $0 $2,571,348 The accompanying notes are an integral part of these statements. 36 Year of Levy 1) CITY OF CHUBBUCK TEN YEAR SUMMARY OF TAX LEVIES SEPTEMBER 30, 1996 Value Tax 1986 $124,887,711 .004769 $599,487 1987 125,907,871 .005013 633,689 1988 125,858,250 005089 640,493 1989 125,917,949 .005295 688,999 1990 124,789,912 .006040 767,051 1991 127,017,877 .006231 795,941 1992 128,308,276 .006879 891,999 1993 131,805,956 .006844 954,405 1994 142,239,506 .008472 1,227,433 1995 151,290,5 68 .008199 1,246,435 1) Levies are certified in October of the year shown. Taxes are primarily received in January and July of the subsequent year. The accompanying notes are an inte,rral part of these statements_ 37