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HomeMy WebLinkAbout1991CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1991 L9n i � moi'qu ILW LAA 0 jk Jones, Yost & Hatt CERTIFIED PUStIC ACCOUNTANTS POCATELLO. IDAHO CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1991 CITY OF CHUBBUCK ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1991 TABLE OF CONTENTS Independent Auditor's Report Exhibit General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups . Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - All Governmental Fund Types . . . . . . . . . . . . . . Combined Statement of Revenue, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types . . . . . . . . . . . . . . Statement of Cash Flows - All Proprietary Funds Types . . . . . . . General Fund: Statement of Revenue and Expenditures - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . Enterprise Funds: Statement of Changes in Fixed Assets . . . . . . . . . . . . . . Notes to Financial Statements OTHER STATEMENTS AND SCHEDULES Combining Balance Sheet - Special Revenue Funds . . . . . . . . . . Combining Statement of Revenue and Expenditures - Special Revenue Funds . . . . . . . . . . . . . . . . . . . . . . Combining Balance Sheet - Capital Project Funds . . . . . . . . . . Combining Statement of Revenue and Expenditures - Capital Project Funds . . . . . . . . . . . . . . . . . . . . . . Combining Balance Sheet -- Enterprise Funds . . . . . . . . . . . . . Combining Statement of Revenue and Expenses - Enterprise Funds . Statistical Section: Nine Year Summary of Tax Levies . . . . . . . . . . . . . . . . . Compliance Report Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards Report on Internal Control Stucture in Accordance With Government Auditing Standards Page Numbers 1 4 2 6 3 7 4 8 5 9 6 10 11 20 21 22 24 26 28 30 31 32 I' It, Jk Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 4987 MEMBERS OF SCOTT N. JONES, CPA — Partner Pocatello, Idaho B3205 American Institute of KENT L. YOST, CPA, JD — Partner Certified Public Accountants MORGAN J. HATT, CPA — Partner Idaho Society of Certified Public Accountants Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Independent Auditor's Report We have audited the accompanying general purpose financial statements of the City of Chubbuck, Idaho, as of September 30, 1991, 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. 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 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 in the first paragraph present fairly, in all material respects, the financial position of the City of Chubbuck, Idaho, as of September 30, 1991, and the results of its operations and changes in financial position of its proprietary fund types 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. IlIx, NES, S HAT c Pocatello, Idaho, February 26, 1992. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 9 POCATELLO, IDAHO 83205 • PHONE 2081233-5000 CITY OF CHUBBUCK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1991 ASSETS: Cash . . . . . . . . . . . . . . . . . Receivables: Property taxes (Note 1-H) . . . . . State sales tax . . . . . . . . . . Highway users' tax . . . . . . . . Inventory phase --out tax . . . . . . Accounts (Note 1-B) . . . . . . . . Court . . . . . . . . . . . . . . . State liquor tax. . . . . . . . . . Note receivable . . . . . . . . . . Amount to be provided for general obligation bonds . . . . . . . . . Restricted Assets: Replacement funds . . . . . . . . . Bond reserve . . . . . . . . . . . Water meter deposits . . . . . . . Fixed assets --net (Note 1--C). . . . . . Total assets . . . . . . . . . . . LIABILITIES: Accounts payable . . . . . . . . . . . Deposits payable . . . . . . . . . . . Deferred property taxes. . . . . . . . General obligation bonds payable . Payable from Restricted Assets: Bonds payable - current . . . . . . Accrued bond interest payable . . . Bonds payable - long term. . . . . . . Total liabilities . . . . . . . . . FUND EQUITY: Investment in general fixed assets . Retained earnings . . . . . . . . . . Contributed capital -- net . . . . . . Reserve for debt service . . . . . . . Reserve for replacement funds Fund balance - undesignated Total fund equity . . . . . . . . . Total liabilities and fund equity . Governmental Fund Types Special Capital General Revenue Project Fund Funds Funds $ 218,001 $ 18,709 $ 357,429 53,528 48,678 76,592 11,378 5,102 4,761 13,023 $ 431,063 $ 18,709 $ 357,429 $ 7,169 44,500 51,669 $ 0 $ 0 379,394 18,709 357,429 379,394 18,709 357,429 $ 431,063 $ 18,709 $ 357,429 The accompanying notes are an integral part of these statements. -4- Proprietary Fund Types Account Groups Internal General Enterprise Service Fixed Funds Fund Assets $ 123,538 $ _-5,009 170,009 General Long -Term $ 480, 000 EXHIBIT I Totals (Memorandum Only) $ 712,668 53,528 48,678 76,592 11,378 170,009 5,102 4,761 13,023 480,000 291,425 291,425 284,834 284,834 52,785 52,785 2,065,377 64,217 $ 2,285,808 4,415,402 $ 2,987,968 $ 59,208 $ 2,285,808 $ 480,000 $ 6,620,185 $ 11,422 52,785 35,000 29,400 870,000 998,607 $ 0 [+, $ 480,000 $ .8, 591 52,785 44,500 48o, 000 35,000 29,400 870,000 480, 000 1, 530,276 2,285,808 2,285,808 781,284 59,208 840,492 631,818 631,818 284,834 284,834 291,425 291,425 1,989,361 59,208 2, 2855,089,909 755,532 , 808 0 5, 089, 909 $7 2,987,968 $ 59,208 $ 2,285,808 $ 480,000 $ 6,620,185 -5- CITY OF CHUBBUCK 0"0 111KW� COMBINED STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES REVENUE: Taxes . . . . . . . . . Licenses and permits . . Court revenue. . . . . . Refunds . . . . . . . . Interest . . . . . . . . Donations . . . . . . . Grants . . . . . . . . . Miscellaneous . . . . . Fire protection service. Program income . Total revenue . EXPENDITURES: General government . . . Law enforcement. . Fire control . . . . . . Parks and recreation . Highways and streets . . Health and welfare . . Total expenditures EXCESS REVENUE OR (EXPENDITURES) . YEAR ENDED SEPTEMBER 30, 1991 Governmental Fund Types OTHER FINANCING SOURCES (USES): Operating transfers in . Operating transfers out. EXCESS (SOURCES/USES) FUND BALANCE - BEGINNING . -109,629 923 -332,264 14,185 -3,500 -14,180 -95,444 -2,577 -346,444 -440,970 14,185 -17,680 -444,465 481,304 9,001 811,022 1,301,327 FUNDS RECLASSIFIED . . . Special Capital Totals General Revenue Project (Memorandum Fund Funds Funds Only) $ 1,460,590 $ 1,460,590 35,245 35,245 42,534 $ 4, 31 4 46,845 12,132 12,132 34,262 961 $ 39,176 74,399 11,857 11,857 17,254 17,254 10,960 10,960 53,305 53,305 46,296 46,296 1,712,578 5,272 51,033 1,768,883 365,157 4,349 369,506 578,107 578,107 267,911 383,297 651,208 116,657 116,657 485,527 485,527 8,848 8,848 1,822,207 4,349 383,297 2,209,853 OTHER FINANCING SOURCES (USES): Operating transfers in . Operating transfers out. EXCESS (SOURCES/USES) FUND BALANCE - BEGINNING . -109,629 923 -332,264 14,185 -3,500 -14,180 -95,444 -2,577 -346,444 -440,970 14,185 -17,680 -444,465 481,304 9,001 811,022 1,301,327 FUNDS RECLASSIFIED . . . . -6,466 12,285 -107,149 -101,330 FUND BALANCE - ENDING . . . $ 379,394 $ 18,709 $ 357,429 $ 755,532 The accompanying notes are an integral part of these statements. -6- CITY OF CHUBBUCK EXHIBIT 3 COMBINED STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1991 OPERATING REVENUE: Service Charges: Sanitation . . . . . . . . . . . Water . . . . . . . . . . . . . . Sewer . . . . . . . . . . . . . . Interfund revenue. . . . . . . . . . Total operating revenues . . . . OPERATING EXPENSES: Personnel . . . . . . . . . . . . . Personnel benefits . . . . . . . . . Supplies . . . . . . . . . . . . . . Purchased services . . . . . . . . . Interfund expenses . . . . . . . . . Depreciation . . . . . . . . . . . . Total operating expenses . . . . Water, Sewer and Garbage Internal Enterprise Service Fund Fund Totals $ 239,998 $ 239,998 406,338 406,338 564,766 564,766 15,473 74,168 89,641 1,226,575 74,168 1,300,743 337,711 50,281 387,992 137,760 107,149 137,760 155,333 17,796 173,129 322,558 5,322 327,880 26,753 26,753 120,705 3,572 124,277 1,100,820 76,971 1,177,791 OPERATING INCOME (LOSS) . . . . . . . . 125,755 -2,803 NONOPERATING REVENUE (EXPENSES): Interest income . . . . . . . . . . Interest expense . . . . . . . . . . Total nonoperating revenue (expenses) . . . . . . . . . . NET INCOME OR (LOSS) . . . . . . . . . OTHER FINANCING SOURCES (USES): Transfers from other funds . . . . . Transfers to other funds . . . . . . RETAINED EARNINGS, RESERVES: Balance - Beginning . . . . . . . . Decrease (increase) in reserves . . Funds reclassified . . . . . . . . . RETAINED EARNINGS, RESERVES: Balance - Ending . . . . . . . . . . 122,952 48,139 48,739 -57,150 -57,150 -8,411 -8,411 117,344 -2,803 114,541 130,953 130,953 -150,953 -150,953 859,721 62,011 921,732 293,329 293,329 107,149 107,149 $ 1,357,543 $ 59,208 $ 1,416,751 The accompanying notes are an integral part of these statements. -7- CITY OF CHUBBUCK STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1991 CASH FLOWS FROM OPERATING ACTIVITIES: Net income or (loss) from (Exhibit 3) . . . . . . . . . Adjustments to reconcile net income to net cash provided by operating activities: Depreciation . . . . . . . . . . . . . . . . . . . . . Increase in accounts receivable . . . . . . . . . . . Increase in accounts payable . . . . . . . . . . . . Increase in deposits payable . . . . . . . . . . . . . Increase in accrued interest . . . . . . . . . . . . Transfer to other funds . . . . . . . . . . . . . . . Increase in reserves . . . . . . . . . . . . . . . . Total adjustments . . . . . . . . . . . . . . . . Net cast; provided by operating activities . . . . . . . . . . . . . . . . . . . CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . . . . . . . . EXHIBIT 4 Water, Sewer and Garbage Internal Enterprise Service Fund Fund $ 117,344 $ -2,803 120,705 3,572 -42,639 3,096 2,011 1,200 -20,000 107,147 171,520 3,572 288,864 -248,988 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments . . . . . . . . . . . . . . . . -35,000 NET INCREASE (DECREASE) IN CASH CASH EQUIVALENTS . . . . . . . . . . . . . . . . . . . . CASH AND CASH EQUIVALENTS AT September 30, 1990 . . . . . . . . . . . . . . . . . . . CASH AND CASH EQUIVALENTS AT September 30, 1991 . . . . . . . . . . . . . . . . . . . 769 n N 4,876 769 747,706 -5,778 $ 752,582 $ -5,009 The accompanying notes are an integral part of these statements. CITY OF CHUBBUCK STATEMENT OF REVENUE AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1991 REVENUE: Property taxes . . . . . . . . . . . Sales tax . . . . . . . . . . . . . . Inventory phaseout . . . . . . . . . . Highway users tax . . . . . . . . . . Liquor tax . . . . . . . . . . . . . . Road and bridge tax . . . . . . . . . Franchise taxes . . . . . . . . . . . Interest on delinquent taxes . Subtotal . . . . . . . . . . . . . Police grants . . . . . . . . . . . . Court revenue . . . . . . . . . . . . Insurance refund . . . . . . . . . . . Licenses and permits . . . . . . . . . Interest . . . . . . . . . . . . . . . Miscellaneous . . . . . . . . . . . . Fire Protection Service . . . . . . . Program income . . . . . . . . . . . . Total revenue . . . . . . . . . . . EXPENDITURES: General Government . . . . . . . . . . Law enforcement . . . . . . . . . . . Fire control . . . . . . . . . . . . . Parks and recreation . . . . . . . . . Highways and streets . . . . . . . . . Health and welfare . . . . . . . . . . EXHIBIT 5 3,500 17,254 Variance 42,534 15,000 Favorable Budget Actual (Unfavorable) $ 753,717 $ 769,139 $ 15,422 262,000 224,038 -37,962 8,000 36,665 28,665 310,000 325,495 15,495 20,000 32,596 12,596 25,000 35,714 10,714 35,000 29,391 -5,609 10,000 7,552 -2,448 1,423,717 1,460,590 36,873 3,500 17,254 40,000 42,534 15,000 12,132 27,150 35,245 15,000 34,262 15,850 10,960 56,000 53,305 44,100 46,296 1,640,317 1,712,578 13,754 2,534 -2,868 8,095 19,262 -4,890 -2,695 2,196 72,261 404,749 365,157 -39,592 531,194 578,107 46,913 266,940 267,911 971 124,131 116,657 -7,474 484,200 485,527 1,327 11,223 8,848 -2,375 Total expenditures . . . . . . . . 1,822,437 1,822,207 -230 EXCESS REVENUE OR (EXPENDITURES) --182,120 -109,629 72,491 TRANSFERS TO OTHER FUNDS . . . . . . . . TRANSFERS FROM OTHER FUNDS . . . . . . . 14,120 14,185 65 EXCESS SOURCES (USES) . . . . . . . . . . $ -168,000 $ -95,444 $ 72,556 The accompanying nates are an integral part of these statements. -9- CITY OF CHUBBUCK STATEMENT OF CHANGES IN FIXED ASSETS ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1991 EXHIBIT 6 INTERNAL SERVICE FUND FIXED ASSETS: Balance at cost - September 30, 1990 . $ Additions: Equipment . . . . . . . . . . . . $ 0 92,483 $ 92,483 Balance at cost - September 30, 1991 . Storage Land, Less accumulated depreciation . . . . 0 28,266 and Buildings September 30, 1991 $ 0 $ 64,217 $ 64,217 Distribution and ENTERPRISE FUND FIXED ASSETS: System Equipment Totals Balance at cost - September 30, 1990 $ 3,152,929 $ 286,549 $ 3,439,478 Additions . . . . . . . . . . . . . . 248,988 248,988 Deletions . . . . . . . . . . . . . 24,640 24,640 Balance at cost - September 30, 1991 . 3,152,929 510,897 3,663,826 Less accumulated depreciation . . . . -1,401,313 -197,136 -1,598,449 Balance at net - September 30, 1991 $ 1,751,616 $ 313,761 $ 2,065,377 INTERNAL SERVICE FUND FIXED ASSETS: Balance at cost - September 30, 1990 . $ Additions: Equipment . . . . . . . . . . . . $ 0 92,483 $ 92,483 Balance at cost - September 30, 1991 . 92,483 92,483 Less accumulated depreciation . . . . 0 28,266 28,266 Balance at net - September 30, 1991 $ 0 $ 64,217 $ 64,217 The accompanying notes are an integral part of these statements. -10- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1991 (1) A. REPORTING ENTITY All funds and account groups of the City of Chubbuck as defined by the National Council on Governmental Accounting Statement #3, are included in these general purpose financial statements. 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 on a continuing basis be financed or recovered primarily through user charges; or (b) where the governing body has decided that periodic determination of revenues earned, expenses incurred, and/or net income is appropriate for capital maintenance, public policy, management control, accountability, or other purposes. 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 fund 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 -11- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 C. FIXED ASSETS - CONTINUED governmental funds are accounted for on a spending 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. 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 accounting relates to the timing of the measurements made, regardless of the measurement focus applied. All governmental funds are accounted for using the modified accural basis of accounting. Their revenues are recognized when they are measureable and available. 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. -12- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 (1) 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 do 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 TAXES Property taxes are levied on the third Monday in September and attach as an enforceable lien on property as of January 1. Real taxes are payable in two installments on December 20, and June 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 taxes levied, the City does not make an allowance for uncollectible property taxes. (2) CHANGES IN GENERAL FIXED ASSETS A summary of changes in general fixed assets follows: Description: Land and buildings . Construction in progress . . . . Machinery and equipment . . . . Improvements other than buildings. Balance 9-30-90 Acquisitions Deletions 519,335 $ 383,000 1,009,748 95, 179 $ 11,264 289,810 Balance at 9-30-91 $ 519,335 383,000 1,093,663 289,810 Totals . . . . . $ 1,818,893 $ X178,179 $ 11,264 $ 2,285,808 NOTE: Enterprise fund properties are reported separately and are not included in the above balance at September 30, 1991. -13- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 (3) GENERAL LONG-TERM DEBT (FIRE STATION BONDS) Issue of August 1, 1990: Due Annual Date Principal Rate Interest Total 08/01/92 $ 20,000 9.000% $ 34,190.00 $ 54,190.00 08/01/93 25:000 8.500% 32,390.00 57,390.00 08/01/94 25,000 8,250% 30,265.00 55,265.00 08/01/95 25,000 7.750% 28,202.50 53,202.50 08/01/96 30,000 6.400% 26,265.00 56,265.00 08/01/97 30,000 6.500% 24,345.00 54,345.00 08/01/98 30,000 6.600% 22,395.00 52,395.00 08/01/99 35,000 6.700% 20,415.00 55,415.00 08/01/00 35,000 6.800% 18,070.00 53,070.00 08/01/01 40,000 6.900% 15,690.00 55,690.00 08/01/02 40,000 6.950% 12,930.00 52,930.00 08/01/03 45,000 7.000% 10,150.00 55,150.00 08/01/04 50,000 7.000% 7,000.00 57,000.00 08/01/05 50,000 7.000% 3,500.00 53,500.00 $ 480,000 $285,807.50 $765,807.50 4) NOTE RECEIVABLE 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 $2441.25 including interest at 10%. -14- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 (5) RETIREMENT PLAN All City of Chubbuck eligible employees participate in the statewide Public Employee Retirement System (PERS), a multiple -employer public employees retirement system. All City employees who normally work in excess of 20 hours per week for a period of at least 5 months or serve as an elected official or an appointed official of the employer are eligible and required to participate in PERS if the employer has joined. Employees with 5 years of credited service may retire at 65 -general membership, 60-police/fireman membership and 60 -65 -mixed membership. Early retirement with 5 years of credited service is available to employees at 55 -general membership, 50 -police/ fireman membership and 50 -55 -mixed membership. Retirement benefits are payable monthly for life. The annual general membership service retirement allowance accrued equals 1-2/3% of average monthly salary, multiplied by months of service credited as a general member. For police officers the percentage is 2%. in addition, there are other retirement options available for election. Average monthly salary is the monthly average of the highest consecutive 5 years of salary. Benefits fully vest on reaching 5 years of membership service. Vested employees may elect to retire upon fulfillment of a minimum age (early retirement) requirement. PERS also provides death and disability benefits. Benefits are established by State Statute. Covered employees are required by State Statute to contribute 5.34% of salary for general members and 6.40% of salary for police and fireman members to the plan. The City is required by the same statute to contribute 8.89% of salary to the plan. The required contributions were made. The "pension benefit obligation" is a standardized disclosure measure of the present value of pension benefits, adjusted for the effects of projected salary increases and step -rate benefits, estimated to be payable in the future as a result of employee service to date. The measure, which is the actuarial present value of credited projected benefits, is intended to help users assess PERS's funding status on a going -concern basis, assess progress made in accumulating sufficient assets to pay benefits when due, and make comparisons among PERS and employers. PERS does not make separate measurements of assets and pension benefit obligation for individual employers. The actuarial present value of future benefits at June 30, 1990 for PERS as a whole was $ (Unavailable). PERS's actuarial value of assets available for the benefits on that date were $ (Unavailable) and the actuarial present value of total future normal costs is $ (Unavailable), leaving an unfunded pension benefit obligation of $ (Unavailable). -15- -16- a O If tb N �D E I I If c 01� 11 (71 1 11 r -I f l 11 If 11 11 +] O r _-r LC1 II -T In II I M O II pp 11 CO N If M � 11 al II II if l>? �r 0-1 ['U 11 U co co (D f l �-o II �. c0 rr) ID L Q� N r I If N 11 N IE (1) 11 Q W C-� Lr) 'F7 [d a r a OO 11 z a o It H rn N =r 11 E.E fl 1 M N 11 z F. r 1 ti N 1! O 1 11 U 4 I! I I1 44- {f} I1 H QZ 1b z r r co _ co 11 N C— r N at Q) m QN O N N tr) it mO 1-- -7 t7 M 11 a' 4-3 U) t0 1 Lf1 11 o ti 11 V) w F 1 !t 11 I1 rn Ix H H 4' EPr tsi I1 U Pa 9-I , m z >+ H W O O a� H H Qy W U] Q V] Pa a-? ' v] 4 o H cti x • •o o' W •� E -F a � �*w-1 O H I 1 a Ix � � w a� - m •o as , d o P HQ> m •+o W fZ 0 a) ri H cd U] V) t -L > Q C15 rl a) cd v •,A as O U E U] r S. V E a a� v o w m a) 4-i () G) O M U U 47 U) Q (tf C7% a5 E-A ,-I H -16- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 (8) CASH ON HAND, IN BANKS, AND INVESTED CASH BALANCE IN FUNDS: General . . . . . . . . . . . . . . . . $ 218,001 Special revenue . . . . . . . . . . . . 18,709 Capital projects . . . . . . . . . . . . 357,429 Enterprise . . . . . . . . . . . . . . . 752,582 Internal service . . . . . . . . . . . . -5,009 $ 1,3141,712 CASH ON DEPOSIT: Petty cash . . . . . . . . . . . . . . . $ 195 Checking accounts: General - First Security . . . . . . $ -109,271 Special Revenue - Key Bank . . . . . 55,500 Sewer Capital Improvement - Key Bank 78,771 Fire Bond - Key Bank . . . . . . . . 81 Enterprise Depreciation - Key Bank 79,162 Water Works - Key Bank . . . . . . . -28,3146 75,898 Investments: Key Bank - CD . . . . . . . . . . . . 90,697 Key Bank - savings. . . . . . . . . . 100,659 State pool . . . . . . . . . . . . . 621,3614 West One - CD . . . . . . . . . . . . 50,000 First Security Bank - TCD . . . . . . 76,113 Idaho Central Credit Union . . . . . 65,000 Key Bank - CD . . . . . . . . . . . . 21,087 Key Bank - savings . . . . . . . . . 100,271 Key Bank - CD . . . . . . . . . . . . 129,954 Key Bank - CD . . . . . . . . . . . . 9,397 Key Bank - savings . . . . . . . . . 1,077 1,265,619 Total cash in banks . . . . . . . $ 1,341,712 -17- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 (9) SUMMARY OF MATURITIES AND INTEREST ON SEWER REVENUE BONDS BY YEAR -18- Interest Interest Principal Due Due Due Total Year April 1 October 1 October 1 Due 1991 $ 24,300.00 $ 20,000.00 $ 44,300.00 1992 $ 23,700.00 23,700.00 20,000.00 67,1400.00 1993 23,100.00 23,100.00 20,000.00 66,200.00 1994 22,500.00 22,500.00 20,000.00 65,000.00 1995 21,900. 00 21,900.00 25,000.00 68,800.00 1996 21,150.00 21,150.00 25,000.00 67,300.00 1997 20,400.00 20,400.00 25,000.00 65,800.00 1998 19,650.00 19,650.00 30,000.00 69,300.00 1999 18,750.00 18,750.00 30,000.00 67,500.00 2000 17,850.00 17,850.00 30,000.00 65,700.00 2001 16,950.00 16,950.00 35,000.00 68,900.00 2002 15,900.00 15,900.00 35,000.00 66,800.00 2003 14,850-00 14,850-00 40, 000.00 69,700-00 2004 13,650.00 13,650.00 40,000.00 67,300.00 2005 12,450.00 12,450.00 40,000.00 64,900.00 2006 11,250.00 11,250.00 45,000.00 67,500.00 2007 9,900.00 9,900.00 45,000.00 64,800.00 2008 8,550.00 8,550.00 50,000.00 67,100.00 2009 7,050.00 7,050.00 55,000.00 69,100.00 2010 5,400.00 5,400.00 55,000.00 65,800.00 2011 3,750.00 3,750.00 60,000.00 67,500.00 2012 1,950.00 1,950.00 65,000.00 68,900.00 Totals $310,650.00 $334,950.00 $810,000.00 $1,455,600.00 -18- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1991 (10) SUMMARY OF MATURITIES AND INTEREST ON WATER REVENUE BONDS BY YEAR -19- Interest Interest Principal Due Due Due Year Numbers March 1 September 1 September 1 Total Due 1992 32-34 $ 2,850.00 $ 2,850.00 $ 15,000.00 $ 20,700.00 1993 35-38 2,400.00 2,400.00 20,000.00 24,800.00 1994 39-42 1,800.00 1,800.00 20,000.00 23,600.00 1995 43-46 1,200.00 1,200.00 20,000.00 22,400.00 1996 47-50 600.00 600.00 20,000.00 21,200.00 Totals $ 8,850.00 ---------- ---------- $ 8,850.00 ----------- ----------- $ 95,000.00 ----------- ----------- $112,700.00 ----------- ----------- -19- CITY OF CHUBBUCK COMBINING BALANCE SHEET SPECIAL REVENUE FUNDS SEPTEMBER 30, 1991 Health Police LID #1 Insurance Training Fund Fund Fund Total ASSETS: Cash . . . . . . . . . . . . . $ 9,398 $ 3,045 $ 6,266 $ 18,709 Total assets . . . . . . . $ 9,398 $ 3,045 $ 6,266 $ 18,709 LIABILITIES: Total liabilities . . . . . $ 0 $ 0 $ 0 $ 0 FUND EQUITY: Fund balance . . . . . . . . . 9,398 3,045 6,266 Total fund equity . . . . . 9,398 3,045 6,266 18,709 18,709 Total liabilities and fund equity . . . . . . $ 9,398 $ 3,045 $ 6,266 $ 18,709 The accompanying notes are an integral part of these statements. -20- CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE AND EXPENDITURES AND CHANGES IN FUND BALANCE SPECIAL REVENUE FUNDS YEAR ENDED SEPTEMBER 30, 1991 The accompanying notes are an integral part of these statements. -21-- Health Police LID #1 Insurance Training Fund Fund Fund Total REVENUE: Court revenue . . . . . . . . $ 4,311 $ 4,311 Interest . . . . . . . . . . . $ 397 $ 259 305 961 Total revenue . . . . . . . 397 259 4,616 5,272 EXPENDITURES: General government . . . . . . 3,680 669 4,349 Total expenditures 0 3,680 669 4,349 EXCESS REVENUE OR (EXPENDITURES). 397 -3,421 3,947 923 OTHER FINANCING SOURCES (USES): Operating transfers out -3,500 -3,500 EXCESS (SOURCES/USES) 397 -3,421 447 -2,577 FUND BALANCE - BEGINNING 9,001 9,001 RECLASSIFIED . . . . . . . . . . 6,466 5,819 12,285 FUND BALANCE - ENDING . . . . . . $ 9,398 $ 3,045 $ 6,266 $ 18,709 The accompanying notes are an integral part of these statements. -21-- CITY OF CHUBBUCK COMBINING BALANCE SHEET CAPITAL PROJECT FUNDS SEPTEMBER 30, 1991 ASSETS: Cash . . . . . . . . . . . . . . . . . Total assets . . . . . . . . . . . . LIABILITIES: Total liabilities . . . . . . . . . FUND EQUITY: Fund balance . . . . . . . . . . . . . Total fund equity . . . . . . . . . Total liabilities and fund equity . Road Capital Parks Fire Projects #2 Station Fund Fund Fund $ 158,572 $ 42,568 $ 152,668 $ 158,572 $ 42,568 $ 152,668 $ 0 $ 0 $ 0 158,572 42►568 152,668 158,572 42,568 152,668 $ 158,572 $ 42,568 $ 152,668 The accompanying notes are an integral part of these statements. -22- Fire Parks Control Dedicated Improvement Fund Fund Total $ 3,621 $ 0 $ 357,429 $ 3,621 $ 0 $ 357,429 $ 0 $ 0 $ 0 3,621 0 357,429 3,621 0 357,429 $ 3,621 $ 0 $ 357,429 -------------------------------- -23- CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE AND EXPENDITURES CAPITAL PROJECT FUNDS YEAR ENDED SEPTEMBER 30, 1991 REVENUE: Interest . . . . . . . . . . . . . . . . . $ Donations . . . . . . . . . . . . . . . . Total revenue . . . . . . . . . . . . . EXPENDITURES: Public safety . . . . . . . . . . . . . . Total expenditures . . . . . . . . . . EXCESS REVENUE OR (EXPENDITURES). . . . . . . OTHER FINANCING SOURCES (USES): Operating transfers in . . . . . . . . . . Operating transfers out . . . . . . . . . Road Capital Project Fund Parks Fire #2 Station 7,613 $ 2,152 $ 29,217 11,857 7,613 14,009 29,217 383,297 0 0 383,297 7,613 14,009 -354,080 EXCESS (SOURCES/USES) . . . . . . . . . . . . 7,613 14,009 -354,080 FUND BALANCE - BEGINNING . . . . . . . . . . 150,959 28,559 506,748 FUND BALANCE - ENDING . . . . . . . . . . . . $ 158,572 $ 42,568 $ 152,668 The accompanying notes are an integral part of these statements. -24- Fire Parks Control Dedicated Improvement Fund Fund Total $ 194 $ 39,176 11,857 194 $ 0 51,033 383,297 0 0 383,297 194 -332,264 -14,180 -14,180 194 -14,180 -346,444 3,427 14,180 703,873 $ 3,621 $ $ 357,429 -25- CITY OF CHUBBUCK COMBINING BALANCE SHEET ENTERPRISE FUNDS SEPTEMBER 30, 1991 Utilities Fund ASSETS: Cash . . . . . . . . . . . . . . . . . . . $ 123,538 Receivables: Accounts . . . . . . . . . . . . . . . 170,009 Restricted Cash: Replacement fund . . . . . . . . . . . Bond and interest reserves . . . . . . 78,765 Water meter deposits . . . . . . . . . 52,785 Fixed assets . . . . . . . . . . . . . . . 3,663,826 Accumulated depreciation . . . . . . . -1,598,449 Water Depreciation Bond Reserve Reserve Fund Fund $ 175,524 $ 76,114 Total assets . . . . . . . . . . . . . $ 2,490,474 $ 175,524 $ 76,114 LIABILITIES: Accounts payable . . . . . . . . . . . . . $ 11,422 Deposits payable . . . . . . . . . . . . . 52,785 Payable from Restricted Assets: Bonds payable - current . . . . . . . . 35,000 Accrued bond interest payable . . . . . 29,400 Bonds payable - long term . . . . . . . . 870,000 Total liabilities . . . . . . . . . . . 998,607 $ 0 $ 0 FUND EQUITY: Retained earnings . . . . . . . . . . . . 781,284 Contributed capital . . . . . . . . . . . 942,038 Accumulated depreciation . . . . . . . . . -310,220 Reserve for debt service . . . . . . . . . 78,765 76,114 Reserve for replacement fund . . . . . . . 175,524 Total fund equity . . . . . . . . . . . 1,491,867 175,524 76,114 Total liabilities and fund equity . . . $ 2,490,474 $ 175,524 $ 76,114 The accompanying notes are an integral part of these statements. -26- $ i23,538 170,009 $ 115,901 291,425 $ 129,955 284,834 52,785 3,663,826 -1, 598, 449 $ 129,955 $ 115,901 $ 2,987,968 $ 0 $ 0 129,955 $ 11,422 52,785 35,000 29,400 870,000 998,607 781,284 942,038 -310,220 284,834 115,901 291,425 129,955 115,901 1,989,361 $ 129,955 $ 115,901 $ 2,987,968 ----------------------------------- -27- Sewer Sewer Repairs Bond and Reserve Replacement Fund Fund Total $ i23,538 170,009 $ 115,901 291,425 $ 129,955 284,834 52,785 3,663,826 -1, 598, 449 $ 129,955 $ 115,901 $ 2,987,968 $ 0 $ 0 129,955 $ 11,422 52,785 35,000 29,400 870,000 998,607 781,284 942,038 -310,220 284,834 115,901 291,425 129,955 115,901 1,989,361 $ 129,955 $ 115,901 $ 2,987,968 ----------------------------------- -27- CITY OF CHUBBUCK COMBINING STATEMENT OF REVENUE, EXPENSES, AND CHANGES IN RETAINED EARNINGS AND RESERVES ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1991 Water Depreciation_ Bond Utilities Reserve Reserve Fund Fund Fund OPERATING REVENUE: Service Charges: Sanitation . . . . . . . . . . . . . . $ 239,998 Water . . . . . . . . . . . . . . . . . 406,338 Sewer . . . . . . . . . . . . . . . . . 564,766 Interfund revenue . . . . . . . . . . . . 15,1473 Total operating revenue . . . . . . . . 1,226,575 $ 0 $ 0 OPERATING; EXPENSES: Personnel . . . . . . . . . . . . . . . . 337,711 Personnel benefits . . . . . . . . . . . . 137,760 Supplies . . . . . . . . . . . . . . . . . 155,333 Purchased services . . . . . . . . . . . . 322,558 Interfund expenses . . . . . . . . . . . . 26,753 Depreciation . . . . . . . . . . . . . . . 120,705 Total operating expenses . . . . . . . 1,100,820 0 0 OPERATING INCOME . . . . . . . . . . . . . . 125,755 0 0 NONOPERATING REVENUE (EXPENSES): Interest income . . . . . . . . . . . . . 16,173 9,715 4,911 Interest expense . . . . . . . . . . . . . -57,150 Total nonoperating revenue (expenses) -40,977 9,715 4,911 NET INCOME . . . . . . . . . . . . . . . . . 84,778 9,715 4,911 OTHER FINANCING SOURCES (USES): Transfers from other funds . . . . . . . . 51,813 79,140 Transfers to other funds . . . . . . . . . -79,140 -71,813 RETAINED EARNINGS - RESERVES: Balance - Beginning . . . . . . . . . . . 509,269 158,482 71,203 Decrease (increase) in reserves . . . . . 293,329 Fund reclassified . . . . . . . . . . . . RETAINED EARNINGS - RESERVES: Balance - Ending . . . . . . . . . . . . . $ 860,0149 $ 175,524 $ 76,114 ----------- ------------ ----------- The accompanying notes are an integral part of these statements. -28- Sewer Sewer Repairs Bond and Reserve Replacement Fund Fund To'tai $ 239,998 406,338 564,766 15,473 0 $ 0 1,226,575 0 0 337,711 137,760 155,333 322,558 26,753 _ 120,705 0 1,100,820 0 125,755 9,188 8,752 48,739 -57,150 9,188 8,752 -8,411 9,188 8,752 117,344 130,953 -150,953 120,767 859,721 293,329 107,149 107,149 $ 129,955 $ 115,901 $ 1,357,543 -29- CITY OF CHUBBUCK NINE YEAR SUMMARY OF TAX LEVIES SEPTEMBER 30, 1991 Year of Levy 1) Value Levy Tax 1982 $ 125,878,960 .003471 $ 437,756 1983 110,367,077* .004074 452,173 1984 119,520,105* .004051 484,489 1985 121,985,145* .004322 528,969 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 * Net of home owners exemption. 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 integral part of these statements. -30- Jk Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 4987 SCOTT N. JONES, CPA — Partner Pocatello, Idaho 83205 KENT L. YOST, CPA, JD — Partner MORGAN J. HATT, CPA — Partner Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Independent Auditor's Report 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, 1991, and have issued our report thereon dated February 26, 1992. 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. Compliance with laws, regulations, and contracts, 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, regulations, and contracts. However, our objective was not to provide an overall compliance with such provisions. The results of our tests indicate that, with respect to the items tested, the City of Chubbuck, Idaho, complied, in all material respects, with the provisions referred to in the preceding paragraph. With respect to items not tested, nothing came to our attention that caused us to believe that the City had not complied, in all material respects, with those provisions. This report is intended for the information of the City of Chubbuck, and its Federal audit cognizant agency. This restriction is not intended to limit the distribution of this report, which is a matter of public record. JONES, T & HATT Pocatello, Idaho, February 26, 1992. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 20812335000 Jk !tl Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS P.O. BOX 4987 MEMBERS OF SCOTT N. JONES, CPA — Partner Pocatello, Idaho 83205 American Institute of KENT L. YOST, CPA, JD — Partner Certified Public Accountants MORGAN J. HATT, CPA — Partner Idaho Society of Certified Public Accountants Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Independent Auditor's Report Report on Internal Control Structure 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, 1991, and have issued our report thereon dated February 26, 1992. 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. In planning and conducting our audit of the general purpose financial statements of the City of Chubbuck, Idaho, for the year ended September 30, 1991, we considered its internal control structure in order to determine our auditing procedures for the purpose of expressing our opinion on the general purpose financial statements and not to provide assurance on the internal control structure. 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. For the purpose of this report, we have classified significant internal control structure policies and procedures in the following categories. Cash Expenditures Payroll Fixed Assets Budgets Purchasing Revenues 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 2081233-5000 r 11, Honorable Mayor and Members of the City Council Page 2 For all of the internal control structure categories listed above, 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. 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 reportable 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 auditing 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 operation 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 audit cognizant agency. This restriction is not intended to limit the distribution of this report, which is a matter of public record. ONES, 7-& HA'TT " Pocatello, Idaho, February 26, 1992. r I'[ 4 �: —,w cK�n�,.. �! Y —£