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
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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
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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
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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
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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