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Home My WebLink About1990CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1990 CIL tV�-P C" jk Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS POCATELLO, IDAHO CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1990 r T CITY OF CHUBBUCK ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1990 TABLE OF CONTENTS Independent Auditor's Report Exhibit General Purpose Financial Statements: Combined Balance Sheet - All Fund Types and Account Groups 1 Combined Statement of Revenue, Expenditures, and Changes in Fund Balance - All Governmental Fund Types . . . . . . . . . . . . . . 2 Combined Statement of Revenue, Expenses, and Changes in Retained Earnings - All Proprietary Fund Types . . . . . . . . . . . . . . 3 Combined Statement of Cash Flows - All Proprietary Fund Types . . . . . . . . . . . . . . . . . . . . . . . . . . . 4 General Fund: Statement of Revenue and Expenditures - Budget and Actual . . . . . . . . . . . . . . . . . . . . . . 5 Enterprise Funds: Statement of Changes in Fixed Assets . . . . . . . . . . . . . . 6 Notes to Financial Statements SUPPORTING SUMMARIES AND SCHEDULES Schedule Cash and Investment Summaries: Cash on Hand, in Banks and Invested . . . . . . . . . . . . . . . 1 Statistical Section: Table Summary of Maturities and Interest on Sewer Revenue Bonds by Year - Issue of October 1, 1972 . . . . . . . . . . . . . . . . 1 Summary of Maturities and Interest on Water Revenue Bonds by Year - Issue of September 1, 1976 . . . . . . . . . . . . . . 2 Eight Year Summary of Tax Levies . . . . . . . . . . . . . . . . . 3 Report on Internal Control Structure in Accordance With Government Auditing Standards Compliance Report Based on an Audit of General Purpose Financial Statements Performed in Accordance With Government Auditing Standards 1' Jk Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS SCOTT N. JONES, CPA — Partner P.O. BOX 4987 MEMBERS OF Pocatello, Idaho 83245 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 general purpose financial statements of the City of Chubbuck as of and for the year ended September 30, 1990, as listed in the table of contents. These financial statements are the responsibility of City management, Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in accordance with generally accepted government auditing standards. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the 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 the financial position of the City of Chubbuck as of September 30, 1990, 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. r� f JONS ,r. �OST & HAT Pocatello, Idaho, March 9, 1991. 416 SOUTH 4TH AVENUE 0 P.O. BOX 4987 e POCATELLO, IDAHO 93205 • PHONE 2481233-5000 CITY OF CHUBBUCK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1990 ASSETS: Cash . . . . . . . . . . . . . . . . . Police training cash . . . . . . . . . Health insurance stop loss account . Receivables: Property taxes (Note 1-H) . State sales tax . . . . . . . . . . Highway users' tax . . . . . . . . Other . . . . . . . . . . . . . . . Accounts (Note 1-B) . . . . . . . . State liquor tax. . . . . . . . . . Note receivable . . . . . . . . . . Amount to be provided for capital leases and general obligation bonds Restricted Assets: Replacement fund . . . . . . . . . Bond reserve . . . . . . . . . . . Water meter deposits . . . . . . . Fixed assets (Note 1-0 . . . . . . . Total assets . . . . . . . . . . LIABILITIES: Accounts payable . . . . . . . . . . . Deposits payable . . . . . . . . . . . Deferred property taxes. . . . . . . . Capital leases payable . . . . . . . . General obligation bonds payable . . . Payable from Restricted Assets: Bonds payable - current . . . . . . Accrued bond interest payable . . . Bonds payable - long term. . . . . . . Total liabilities . . . . . . . . . FUND EQUITY: Reserve for police training Investment in general fixed assets . Retained earnings . . . . . . . . . . Contributed capital . . . . . . . . . Reserve for debt service . . . . . . . . . . . Reserve for replacement fund . . . . . Governmental Fund Types Capital Special General Projects Revenue Fund Fund Fund $323,197.34 $811,022.61 $ 9,001.02 5,819.39 6,465.72 50,966.46 64,672.46 85,381.35 21,854.30 4,761.00 14,058.75 $577,176.77 $811,022.61 $ 9,001.02 $ 39,087.26 50,966.46 90,053.72 $ .00 $ .00 5,819.39 Fund balance - undesignated . . . . . 481,303.66 811,022.61 Total fund equity . . . . . . . . . 487,123.05 811,022.61 Total liabilities and fund equity $577,176.77 $811,022.61 The accompanying notes are an integral part of these statements. -4- 9,001.02 n on1 n-) 9,uut.uc EXHIBIT 1 Proprietary Fund Types Account Groups 50,774.00 50,774.00 Internal General General Totals Enterprise Service Fixed Long -Term (Memorandum Fund Fund Assets Debt Only) $ 269,958.33 $ -5,778.63 $1,407,400.67 5,819.39 6,465.72 50,966.46 64, 672.46 85,381.35 21,854.30 127,369.57 i27,369.57 4,761.00 14,058.75 $562, 738.44 562, 738.44 158,482.45 1580482.45 268,490.75 268,490.75 50,774.00 50,774.00 1,964,594.87 67,789.43 $1,818,894.29 3,851,278.59 $2,839,669.97 $ 62,010.80 $1,818,894.29 $562,738.44 $6,680,513.90 $ 8,325.69 50, 774.00 12,854.61 35,000.00 28,200.00 905,000.00 1,040,154.30 $ .00 430,503.99 62,010.80 942,038.48 268,490.75 158,482.45 1,799,515.67 62,010.80 $2,839,669.97 $ 62,010.80 $ .00 $ 62,738.44 500,000.00 $ 47,412.95 50,774.00 50,966.46 75,593-05 500,000.00 35, 000.00 28,200.00 905,000.00 562,738-44 1, 692, 946.46 5,819.39 1, 818, 894.29 492,514.79 942,038.48 268,490.75 158,482.45 1,301,327.29 1,818,894.29 .00 4,987,567.44 $1,818,894.29 $562,738.44 $6,680,513.90 ------------- ----------- ------------- -5- CITY OF CHUBBUCK EXHIBIT 2 COMBINED STATEMENT OF REVENUE, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1990 Governmental Fund 'Types EXPENDITURES: General government 242,946.99 Public safety . 780,124.36 Parks and recreation 122,318.97 Highways and streets 275,490.57 Total expenditures 1,420,880.89 .00 EXCESS REVENUE OR (EXPENDITURES) OTHER FINANCING SOURCES (USES): Operating transfers in . Operating transfers out. Bond proceeds EXCESS (SOURCES/USES) . . 177,720.27 55►727.39 368.00 40,000.00 -57,973.39 500,000.00 120,114.88 595,727.39 242,946.99 780,124-36 122,318.97 275, X490.57 .. o0 1,420,880-89 128.15 233,575.81 -368.00 40,000.00 -57,973.39 500,000.00 -239.85 715,602.42 FUND BALANCE - BEGINNING 364,647.31 215,295.22 9,240.87 589,183.40 INCREASE IN POLICE TRAINING RESERVE . . . . -3,458.53 -3,458'53 FUND BALANCE - ENDING $ 481,303.66 $811,022.61 $ 9,001.02 $1,301,327.29 The accompanying notes are an integral part of these statements. -6- Capital Special Totals General Projects Revenue (Memorandum REVENUE: Taxes (Ex. 5) Fund $1,382,179.83 Fund Fund Only) $1,382,379.83 . . . . . Licenses and permits . . 25,050.50 25,050.50 Court revenue. . . . . . 54,698.13 54,698.13 769.00 Service charges 769.00 33,3714.82 $ 15,725.07 $ 128.15 49,228.04 Interest . 26,002.32 26,002.32 Donations . . . . . . . Sale of fire truck . . . 14,000.00 14,000.00 Miscellaneous . . . . 15,714.76 15,714.76 Fire protection service. 51,275.00 51,275.00 Program income 35,539.12 35,539.12 1,654,456.70 128.15 55,727.39 1,598,601.16 Total revenue EXPENDITURES: General government 242,946.99 Public safety . 780,124.36 Parks and recreation 122,318.97 Highways and streets 275,490.57 Total expenditures 1,420,880.89 .00 EXCESS REVENUE OR (EXPENDITURES) OTHER FINANCING SOURCES (USES): Operating transfers in . Operating transfers out. Bond proceeds EXCESS (SOURCES/USES) . . 177,720.27 55►727.39 368.00 40,000.00 -57,973.39 500,000.00 120,114.88 595,727.39 242,946.99 780,124-36 122,318.97 275, X490.57 .. o0 1,420,880-89 128.15 233,575.81 -368.00 40,000.00 -57,973.39 500,000.00 -239.85 715,602.42 FUND BALANCE - BEGINNING 364,647.31 215,295.22 9,240.87 589,183.40 INCREASE IN POLICE TRAINING RESERVE . . . . -3,458.53 -3,458'53 FUND BALANCE - ENDING $ 481,303.66 $811,022.61 $ 9,001.02 $1,301,327.29 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, 1990 OPERATING REVENUE: Service Charges: Sanitation . . . . . . . . . . . $ Water . . . . . . . . . . . . . . Sewer . . . . . . . . . . . . . . Interfund revenue, . . . . . . . , . _ Total operating revenues . . OPERATING EXPENSES: Personnel . . . . . . . . . . Personnel benefits . . . . . . . Supplies . . . . . . . . . . . . . . Contractual services . . . . . . . . Interfund expenses . . . . . . . . . Depreciation . . . . . . . . . . . . Total operating expenses . . OPERATING INCOME (LOSS) . . . . . . . . NONOPERATING REVENUE (EXPENSES): Interest income . . . . . . . . . . Interest expense . . . . . . . . . . Total nonoperating revenue (expenses) . . . . . . . . . . NET INCOME OR (LOSS) . . . . . . . . . OTHER FINANCING SOURCES (USES): Transfers from general fund RETAINED EARNINGS: Balance - Beginning . . . . . . Decrease (increase) in reserves RETAINED EARNINGS: Balance - Ending . Water, Sewer and Garbage Internal Enterprise Service Fund Fund 195,733.55 397,682.55 356,919.42 950,335.52 Totals $ 195,733.55 397,682.55 356,919.42 $ 73, 386.00 73, 386.00 73,386.00 1,023,721.52 328,918.93 49,577.67 378,496.60 133,443.65 133,443.65 116,966.32 24,721.51 141,687.83 186,158.54 3,975.54 190,134.08 13,867.82 13,867.82 126,226.15 3►571.95 129,798.10 905,581.41 81,846.67 987,428.08 44,754.11 -8,460.67 36,293.44 42,131.68 -67,612.33 42,131.68 -67,612.33 -25,480.65 .00 -25,480.65 19,273.46 -8,460.67 10,812.79 17,973.39 482,639.56 70,471.47 -89,382.42 17,973.39 553,111.03 -89,382.42 $ 430,503.99 $ 62,010.80 $ 492,514.79 The accompanying notes are an integral part of these statements. -7- CITY OF CHUBBUCK COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1990 Water, Sewer CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . -38,025.75 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments -30,000.00 Internal Service Fund $-8,460.67 EXHIBIT 4 Totals $ 10,812.79 3,571.95 129,798.10 21,901.27 -188.24 -21,551.42 3,299.00 4,104.61 -900.00 17,973.39 79,100.00 3,383.71 233,724.95 -5,076.96 244,537.74 .00 -38,025.75 00 -30,000.00 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . 181,588.95 --5,076.96 176,511.99 CASH AND CASH EQUIVALENTS AT September 30, 1989 . . . . • . . . . . . . 566,116.58 -701.67 565,414.91 CASH AND CASH EQUIVALENTS AT September 30, 1990 . . . . . . . . . . . . $ 747,705.53 $-5,778.63 $ 741,926.90 The accompanying notes are an integral part of these statements. and Garbage Enterprise CASH FLOWS FROM OPERATING ACTIVITIES: Fund Net income or (loss) from (Exhibit 3) $ 19,273.46 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation . . . . . . . . . . . . . . 126,226.15 Decrease in accounts receivable 21,901.27 Decrease in accounts payable -21,363.18 Increase in deposits payable. . . . . . 3,299.00 Increase in lease payable . . . . . . . 4,104.61 Decrease in accrued interest . . . . . -900.00 Transfer from General Fund . . . . . . 17,973.39 Increase in replacement reserve . . . . 79,100.00 Total adjustments . . . . . . . . . 230,341.24 Net cash provided by operating activities. . . . . . . . . . . . 249,614-70 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . -38,025.75 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments -30,000.00 Internal Service Fund $-8,460.67 EXHIBIT 4 Totals $ 10,812.79 3,571.95 129,798.10 21,901.27 -188.24 -21,551.42 3,299.00 4,104.61 -900.00 17,973.39 79,100.00 3,383.71 233,724.95 -5,076.96 244,537.74 .00 -38,025.75 00 -30,000.00 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . 181,588.95 --5,076.96 176,511.99 CASH AND CASH EQUIVALENTS AT September 30, 1989 . . . . • . . . . . . . 566,116.58 -701.67 565,414.91 CASH AND CASH EQUIVALENTS AT September 30, 1990 . . . . . . . . . . . . $ 747,705.53 $-5,778.63 $ 741,926.90 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, 1990 REVENUE: Taxes: Property taxes . . . . . . . . . . Sales tax . . . . . . . . . . . . . Inventory phaseout. . . . . . . . . Highway users tax . . . . . . . . . Liquor tax . . . . . . . . . . . . Road and bridge tax . . . . . . . . Franchise taxes . . . . . . . . . . Interest on delinquent taxes . . . Subtotal taxes . . . . . . . . . . Court revenue . . . . . . . . . . . . Service charges . . . . . . . . . . . Licenses and permits . . . . . . . . . Interest . . . . . . . . . . . . . . . Miscellaneous . . . . . . . . . . . . Fire Protection Service . . . . . . . Program income . . . . . . . . . . . . Total revenue . . . . . . . . . . . EXPENDITURES: EXHIBIT 5 1,455,418.00 1,598,601.16 143,183.16 General Government . . . . . . . . . . 321,025.00 242,946.99 78,078.01 Public safety . . . . . . . . . . . . 733,362.00 780,124.36 -46,762.36 Parks and recreation . . . . . . . . . 89,031.00 122,318.97 -33,287.97 Highways and streets . . . . . . . . . 422,000.00 275,490.57 146,509.43 Total expenditures . . . . . . . . 1,565,418.00 1,420,880.89 144,537.11 EXCESS REVENUE OR (EXPENDITURES) . . . . -110,000.00 177,720.27 287,720.27 TRANSFERS TO OTHER FUNDS . . . . . . . . .00 -57,973.39 --57,973.39 TRANSFERS FROM OTHER FUNDS . . . . . . . .00 368.00 368.00 EXCESS SOURCES (USES) . . . . . . . . . . $ -110,000.00 $ 120,114.88 $ 230,114.88 The accompanying notes are an integral part of these statements. a1L Variance Favorable Budget Actual (Unfavorable) $ 670,418.00 $ 654,799.10 $ -15,618.90 220,000.00 269,404.29 49,404.29 8,000.00 5,272.24 -2,727.75 297,000.00 353,517.64 56,517.64 20,000.00 20,477.19 477.19 25,000.00 31,652.71 6,652.71 35,000.00 36,134.69 1,134.69 10,921.97 10,921-97 1,275,418.00 1,382,179.83 106,761.83 30,000.00 54,698.13 24,698.13 850.00 769.00 -81.00 37,150.00 25,050.50 -12,099.50 15,000.00 33,374.82 18,374.82 15,000.00 15,714.76 714.76 53,000.00 51,275.00 -1,725.00 29,000.00 35,539.12 6,539.12 1,455,418.00 1,598,601.16 143,183.16 General Government . . . . . . . . . . 321,025.00 242,946.99 78,078.01 Public safety . . . . . . . . . . . . 733,362.00 780,124.36 -46,762.36 Parks and recreation . . . . . . . . . 89,031.00 122,318.97 -33,287.97 Highways and streets . . . . . . . . . 422,000.00 275,490.57 146,509.43 Total expenditures . . . . . . . . 1,565,418.00 1,420,880.89 144,537.11 EXCESS REVENUE OR (EXPENDITURES) . . . . -110,000.00 177,720.27 287,720.27 TRANSFERS TO OTHER FUNDS . . . . . . . . .00 -57,973.39 --57,973.39 TRANSFERS FROM OTHER FUNDS . . . . . . . .00 368.00 368.00 EXCESS SOURCES (USES) . . . . . . . . . . $ -110,000.00 $ 120,114.88 $ 230,114.88 The accompanying notes are an integral part of these statements. a1L CITY OF CHUBBUCK STATEMENT OF CHANGES IN FIXED ASSETS ENTERPRISE FUNDS YEAR .ENDED SEPTEMBER 30, 1990 EXHIBIT 6 INTERNAL SERVICE FUND FIXED ASSETS: Balance at cost - September 30, 1989 . Additions: Equipment . . . . . . . . . . . . $ .00 $ 92,483.38 $ 92,483.38 Balance at cost - September 30, 1990 Storage Land, Less accumulated depreciation .00 -24,693.95 and Buildings September 30, 1990 $ .00 $ 67,789.43 $ 67,789.43 Distribution and ENTERPRISE FUND FIXED ASSETS: System Equipment Totals Balance at cost - September 30, 1989 . $ 3,152,929.00 $ 248,523.14 $ 3,401,452.14 Additions: Equipment . . . . . . . . . . . . .00 38,025.75 38,025.75 Deletions . . . . . . . . . . . . . . .00 .00 .00 Balance at cost - September 30, 1990 . 3,152,929.00 286,548.89 3,439,477.89 Less accumulated depreciation . . . . -1,312,351.36 -162,531.66 -1,474,883.02 Balance at net - September 30, 1990 . $ 1,840,577.64 $ 124,017.23 $ 1,964,594.87 INTERNAL SERVICE FUND FIXED ASSETS: Balance at cost - September 30, 1989 . Additions: Equipment . . . . . . . . . . . . $ .00 $ 92,483.38 $ 92,483.38 Balance at cost - September 30, 1990 92,483.38 92,483.38 Less accumulated depreciation .00 -24,693.95 -24,693.95 Balance at net - September 30, 1990 $ .00 $ 67,789.43 $ 67,789.43 The accompanying notes are an integral part of these statements. -10- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1990 (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 Hind. 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, 1990 (1) 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 general 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. The account group is not a "fund." measurement of financial position. of results of operations. D. BASIS OF ACCOUNTING It is concerned only with the It is not involved with measurement 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, 1990 (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: Balance Balance at Description: 9-30-89 Acquisitions Deletions 9-30-90 Land and buildings $ 519,335-34 $ 519, 335.314 Street improvements 11,264.00 11,2614.00 Plant machinery and equipment 895, 1499. X48 $ 127,985-37 $25,000-00 99B,484.85 Improvements other than buildings. 285,673.30 4,136.80 289,810.10 Totals $1,711,772.12 $ 132,122.17 $25,000.00 $1,818,894.29 NOTE: Enterprise fund properties are reported separately and are not included in the above balance at September 30, 1990. -13- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1990 (3) LONG-TERM DEBT (ENTERPRISE FUND) The annual requirements to amortize long-term revenue bonds as of September 30, 1990 are as follows: Year Ending September 30 1990 $ 20,000.00 1991 35,000-00 1992 35,000.00 1993 40, 000.00 1994 40,000.00 1995 45,000-00 1996 45,000.00 1997 25,000.00 1998 30,000.00 1999 30,000-00 2000 30,000.00 2001 35,000-00 2002 35,000.00 2003 40,000.00 2004 40,000.00 2005 40,000.00 2006 45,000.00 2007 45,000.00 2008 50,000.00 2009 55,000-00 2010 55,000.00 2011 60, 000.00 2012 65,000.00 $ 940,000.00 -14- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1990 (4) GENERAL LONG-TERM DEBT (FIRE STATION BONDS) Issue of August 1, 1990: Annual Debt Payments due Service August 1, Principal Interest Total 1991 $ 20,000 $ 34,950 $ 54,950 1992 20,000 33,710 53,710 1993 25,000 32,440 57,440 1994 25,000 30,815 55,815 1995 25,000 29,165 54,165 1996 30,000 27,490 57,490 1997 30,000 25,450 55,450 1998 30,000 23,380 53,380 1999 35,000 21,280 56,280 2000 35,000 18,813 53,813 2001 40,000 16,327 56,327 2002 40,000 13,468 53,468 2003 45,000 10,587 55,587 2004 50,000 7,325 57,325 2005 50,000 3,675 53,675 $500,000 $328,875 $828,875 5) NOTE RECEIVABLE On March 9, 1989, the City of Chubbuck sold property for $90,000.00. The City received $75,000.00 as a down payment. The balance will be paid in 10 years with an annual payment of $2441.25 including interest at a rate of 10% annually. -15- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1990 (6) 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 contribution requirement for the year ended September 30, 1990 was $1314,566.69, which consisted of $81,686.36 from the City and $52,880.33 from employees. 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). -16- O x U N N N N O� Ln Ln O C') O" O1 rn O-. Ll-- rn (3-� rn o, 0 0 r II J-) 4--) r rn [d II U L1 U (-,; ; ca O Ol '- cd %D Ln til EZ cd cd 0�.O cd =r E -3- ---T 011 N N Ln L I� cd C. c ay cd Ld Q7 L1l U N CL '-7 _-r Fz4 C=. C=. [zJ O x U N N =r 00 00 "D Ln Ln O .7 II Ln m Ll-- ry) CYl L.- 0 0 r II J-) 4--) �r4 i [d II U L1 U (-,; ; ca O Ol '- 00 00 %D Ln til r rn II 0�.O =r E -3- ---T 011 N N Ln L I� cd C. c O O U7 E + H a' r kD Ln _-r QO Ln Ln O N it E O rn •rl •rl �r W f3. r lD II u O x U -1.7- i. �4 4-) U � S. H 4--) �r4 i [d U L1 U U ca O i +3 47 E Cs. O V C? cd C. c O O U7 E + H H U i. S. •r -I Iv N 0 H ho L S E O co •rl •rl �r W f3. -1.7- r t' 11 N NM co Ln 0% N H ('rl N �m I IF N. co N M M .a O O t -- "D "D or) O H c� Q1 �D Q m m O H rfl cc N 1p tD �D 1 In 4-5 E3 rR co O� 00 I r (15 fa m o ca a) t > s •� m F6 a� rn -4 N Q7 O ,y C 4-) U v1 (v 9D U) 01 U] U x co Fn co rn Qr H H 7 U -4 O �n m ro � s~ m � U � N U f1. 7] dl <D U) x m o" O (\I �o N IF Ir mrn 1;1,- 61 Ir c0 m M L-- Op II m pl N O l0 II H II t0 �D II I O O t -- "D "D or) O H c� Q1 �D Q m m O H rfl cc N 1p tD �D 1 In 4-5 E3 rR co O� 00 I r (15 fa m o ca a) t > s •� m F6 a� rn -4 N Q7 O ,y C 4-) U v1 (v 9D U) 01 U] U x co Fn co rn Qr H H 7 U -4 O �n m ro � s~ m � U � N U f1. 7] dl <D U) x m o" CITY OF CHUBBBUCK SCHEDULE 1 CASH ON HAND, IN BANKS, AND INVESTED SEPTEMBER 30, 1990 CASH BALANCE IN FUNDS: General . . . .. . . . . . . . . . . . . . . $ 335, 482.45 Capital projects . . . . . . . . . . . . . . . 811,022.61 Special revenue . . . . . . . . . . . . . . . 9,001.02 Enterprise . . . . . . . . . . . . . . . . . . 747, 705.53 Internal service . . . . . . . . . . . . . . . -5,778.63 $1,897,432.98 CASH ON DEPOSIT: Petty cash . . . . . . . . . . . . . . . . . . $ 195.00 Checking accounts: Key Bank Health insurance - stop loss . . . . . . . $ 6,465.72 Court fund . . . . . . . . . . . . . . . . 5,819-39 General fund . . . . . . . . . . . . . . . . 21,632.02 Water systems revenue - enterprise. 14,738.45 Sewer reserve bonds . . . . . . . . . . . . 57,909.03 Sewer revenue bonds . . . . . . . . . . . . 1.12 Water reserve fund . . . . . . . . . . . . 1.46 Water revenue bonds . . . . . . . . . . . . 18,611.10 Highway streets capital improvement . . . . 1.16 Fire capital improvement . . . . . . . . . 14,180.26 Sewer system repair . . . . . . . . . . . . 1.50 Park Dedication fund . . . . . . . . . . . 3,427.16 Park fund #2 . . . . . . . . . . . . . . . 28,559-27 Local improvement district . . . . . . . . 1.02 Investments: Merrill Lynch . . . . . . . . . . . . . . . 78.85 Key Bank . . . . . . . . . . . . . . . . . 493,248-38 State pool . . . . . . . . . . . . . . . . 1,046,359.98 West One . . . . . . . . . . . . . . . . . 50, 000.00 First Security Bank . . . . . . . . . . . . 71,202.11 Idaho Central Credit Union . . . . . . . . 65,000.00 Total cash in banks . . . . . . . . . . The accompanying notes are an integral part of these statements. -19- 171,348.66 1,725,889.32 $1,897,432.98 CITY OF CSUBBUCK TABLE 1 SUMMARY OF MATURITIES AND INTEREST ON SEWER REVENUE BONDS BY YEAR SEPTEMBER 30, 1990 The accompanying notes are an integral part of these statements. -20- Interest Interest Principal Due Due Due Total Year April 1 October 1 October 1 Due 1990 $ 24,900.00 $ 20,000.00 $ 44,900.00 1991 $ 24,300.00 24,300.00 20,000.00 68,600.00 1992 23,700.00 23,700.00 20,000.00 67,400.00 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 $334,950.00 $359,850.00 $830,000.00 $1,524,800.00 The accompanying notes are an integral part of these statements. -20- CITY OF CHUBBUCK TABLE 2 SUMMARY OF MATURITIES AND INTEREST ON WATER REVENUE BONDS BY YEAR SEPTEMBER 30, 1990 Principal Due September $ 15,000.00 15,000.00 20,000.00 20,000.00 20,000,00 20,000.00 $110,000.00 The accompanying notes are an integral part of these statements. -21- $ 21,600.00 20,700.00 24,800.00 23,600.00 22,400.00 $134,300.00 Interest Interest Due Due Year Numbers March 1 September 1 1991 29-31 $ 3,300.00 $ 3,300.00 1992 32-34 2,850.00 2,850.00 1993 35-38 2,400.00 2,400.00 1994 39-42 1,800.00 1,800.00 1995 43-46 1,200.00 1,200.00 1996 47-50 600.00 600.00 Totals $12,150.00 $ 12,150.00 Principal Due September $ 15,000.00 15,000.00 20,000.00 20,000.00 20,000,00 20,000.00 $110,000.00 The accompanying notes are an integral part of these statements. -21- $ 21,600.00 20,700.00 24,800.00 23,600.00 22,400.00 $134,300.00 Year of Levy 1) CITY OF CHUBBUCK TABLE 3 EIGHT YEAR SUMMARY OF TAX LEVIES SEPTEMBER 30, 1990 Value Levy 1982 $125,878,960.00 .003471 $437,756.00 1983 110,367,077.00* .004074 452,173.00 19814 119,520,105.00* .004051 484,489.00 1985 121,985,145.00* .004322 528,969.00 1986 124,887,711.00* .004769 599,487.00 1987 125,907,871.00* .005013 633,689.00 1988 125,858,250.00* .005089 640,493.00 1989 125,917,949.00* .005295 688,999.90 * 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. -22- Jk !t9 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, 1990, and have issued our report thereon dated March 9, 1991. 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. In planning and performing our audit of the general purpose financial statements of the City of Chubbuck, Idaho, for the year ended September 30, 1990, 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 0 POCATELLO, IDAHO 83205 • PHONE 2081233-5000 r. 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. i ONES, T-"& AT ' Pocatello, Idaho, March 9, 1991. 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 the General Purpose Financial Statements Performed in Accordance With Government Auditing Standards We have audited the general purpose financial statements of the City of Chubbuck as of and for the year ended September 30, 1990, and have issued our report theron dated March 9, 1991. 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, and contracts, applicable to the City of Chubbuck 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 performed 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 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. Pocatello, Idaho, March 9, 1991. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 208/233-5000 l /on gx , I f & H At T Pocatello, Idaho, March 9, 1991. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 208/233-5000 r. r