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CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 1989 jk Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS POCATELLO, IDAHO CITY OF CHUBBUCK, IDAHO GENERAL PURPOSE FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 19$9 r i i CITY OF CHUBBUCK ANNUAL FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 1989 TABLE OF CONTENTS Auditor's Opinion General Purpose Financial Statements: Exhib it Combined Balance Sheet - All Fund Types and Account Groups . . . . . 1 Combined Statement of Revenues, Expenditures, and Changes in Fund Balance - All Governmental Fund Types . . . . . . . . . . . . . . 2 Combined Statement of Revenues, 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 Revenues 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 Seven Year Summary of Tax Levies . . . . . . . . . . . . . . . . . 3 Report on Internal Accounting Controls Based Solely on a Study and Evaluation Made as a Part of an Examination of the General Purpose or Basic Financial Statements Compliance Report Based on an Examination of General Purpose or Basic Financial Statements Performed in Accordance With the Standards for Audit Issued by the U.S. General Accounting Office 1 Jk Jones, Yost & Hatt CERTIFIED PUBLIC ACCOUNTANTS SCOTT N. JONES, CPA — Partner P.O. BOX 4987Pocatello, 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 MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants We have audited the general purpose financial statements of the City of Chubbuck as of and for the year ended September 30, 1989, 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 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 s'tatement 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 at September 30, 1989, and the results of its operations for the year then ended, in conformity with generally accepted accounting principles. Our examination was made for the purpose of forming an opinion on the general purpose financial statements taken as a whole. The 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 examination 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. J ONES, HA T Pocatello, Idaho, January 4, 1990. 416 SOUTH 4TH AVENUE + P.O. BOX 4987 0 POCATELLO, IDAHO 83205 0 PHONE 208!233-5000 CITY OF CHUBBUCK COMBINED BALANCE SHEET ALL FUND TYPES AND ACCOUNT GROUPS SEPTEMBER 30, 1989 ASSETS: Cash . . . . . . . . . . . . . . . . . Police training cash . . . . . . . . . Health insurance stop loss account . Receivables: Property taxes (Note 1-G) . State sales tax . . . . . . . . Highway users' tax . . . . . . . . Other . . . . . . . . . . . . . . . Accounts (Note 1-A) . . . . . . . . State liquor tax. . . . . . . . . . Note receivable . . . . . . . . . . Amount to be provided for capital leases . . . . . . . . . . . . . . Restricted Assets: Bond reserve . . . . . . . . . . . Water meter deposits . . . . . . . Fixed assets (Note 1-B) . . . . . . . Total assets . . . . . . . . . . . LIABILITIES: Accounts payable . . . . . . . . . . . Deposits payable . . . . . . . . . . . Deferred property taxes. . . . . . . . Capital leases 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 . . . . . . . . . . . Fund balance - undesignated . . . . . Total fund equity . . . . . . . . . Total liabilities and fund equity . Governmental Fund Types Capital Special General Projects Revenue Fund Fund Fund $208,984.88 $215,295.22 $ 9,240.87 2,360.86 8,014.47 65,059.60 59,786.64 77,378.49 7,255.59 4,762.00 15,000.00 $448,602.53 $215,295.22 $ 9,240.87 $ 33,594.36 48,000.00 81,594.36 $ .00 $ .00 2,360.86 364,647.31 215,295.22 9,240.87 367,008.17 215,295.22 9,240-87 $448,602.53 $215,295.22 $ 9,240.87 The accompanying notes are an integral part of these statements. -4- EXHIBIT 1 Proprietary Fund Types Account Groups Internal General General Totals Enterprise Service Fixed Long -Term (Memorandum Fund Fund Assets Debt Only) $ 260,150.80 $ -701.67 $ 692,970.10 149,270.84 $115,736.45 2,360.86 8,0114.147 65,059.60 59,786.64 77,378.49 7,255.59 149,270.84 4,762.00 15,000.00 115,736.45 258,490.78 258,490.78 47,475.00 47,475.00 2,052,795.27 71,361.38 $1,711,772.12 3,835,928.77 $2,768,182.69 $ 70,659.71 $1,711,772.12 $115,736.45 $5,339,489.59 $ 29,688.87 $ 188.24 $ 63,471.47 47,475.00 47,475.00 48,00o.0o 8,750.00 $115,736.45 124,486.45 --30,000-00 30,000-00 29,100.00 -:;,,Y-r 29,100.00 940,000.00 940,000.00 1,085,013.87 188.24 $ .00 115,736.45 1,282,532.92 1,711,772.12 482,639.56 70,471.47 942,038.48 258,490.78 1,683,168.82 70,471.47 1,711,772.12 2,360.86 1,711,772.12 553,111.03 942,038.48 258,490-78 589,183.40 .00 4,056,956.67 $2,768,182.69 $ 70,659.71 $1,711,772.12 $115,736.45 $5,339,489.59 -5- fjj CITY OF CHUBBUCK EXHIBIT 2 COMBINED STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE ALL GOVERNMENTAL FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 Governmental Fund Types The accompanying notes are an integral part of these statements. -6- Capital Special Totals General Projects Revenue (Memorandum REVENUES: Fund Fund Fund Only) Taxes (Ex. 5) - $1,265,411.98 $1,265,411.98 Licenses and permits 25,639.50 25,639.50 Court revenue. . 43,196.19 43,195.19 Service charges . . . . 83,094.44 83,094.44 Interest . . . . . . . . 31,108.97 $ 15,525.96 $ 515.16 47,150.09 Donations . . . . . . . 2,905.00 2,905.00 Sale of land . . . . . . 90,000.00 90,000.00 Miscellaneous. . . . . . 19,614.83 19,614.83 Total revenues . . . 1,558,065.91 18,430.96 515.16 1,577,012.03 EXPENDITURES: General government . . . 337,770.67 337,770.67 Public safety . . . . . 713,659.92 713,659.92 Parks and recreation . . 91,743.57 91,743.57 Highways and streets . . 328,572.38 328,572.38 Total expenditures . 1,471,746.54 1,471,746.54 EXCESS REVENUES OR (EXPENDITURES) 86,319,37 18,430.96 515.16 105,265.49 OTHER FINANCING SOURCES (USES): Operating transfers in (out) . . . . . . 5,520.00 5,520.00 EXCESS (SOURCES/USES) 91,839.37 18,430.96 515.16 110,785.49 FUND BALANCE - BEGINNING 274,406.96 196,864.26 8,725.71 479,996.93 INCREASE IN POLICE TRAINING RESERVE . . . . -1,599.02 -1,599.02 FUND BALANCE - ENDING . . . $ 364,647.31 $215,295.22 $ 9,240.87 $ 589,183.40 The accompanying notes are an integral part of these statements. -6- CITY OF CHUBBUCK COMBINED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN RETAINED EARNINGS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 OPERATING REVENUES: Service Charges: Sanitation . . . . . . . . . . . Water . . . . . . . . . . . . . . Sewer . . . . . . . . . . . . . . Interfund revenue. . . . . . . . . . Total operating revenues . . . . OPERATING EXPENSES: Personnel . . . . . . . . . . . . . Personnel benefits . . . . . . . . . Supplies . . . . . . . . . . . . . . Contractual services . . . . . . . . Interfund expenses . . . . . . . . . Total operating expenses . . . . OPERATING INCOME (LOSS) . . . . . . . . NONOPERATING REVENUES (EXPENSES): Interest income . . . . . . . . . . Interest expense . . . . . . . . . . Total nonoperating revenues (expenses) . . . . . . . . . . NET INCOME OR (LOSS) . . . . . . . . . OTHER FINANCING SOURCES (USES): Transfers to general fund RETAINED EARNINGS: Balance - Beginning . . . . . . Decrease (increase) in reserves RETAINED EARNINGS: Balance - Ending . . . . . . . . . . EXHIBIT 3 Water, Sewer and Garbage Internal Enterprise Service Fund Fund Totals $ 230,188.81 $ 230,188.81 425,732.99 425,732.99 375,601.99 375,601-99 _ $ 69,950.00 69,950.00 1,031,523.79 69,950.00 1,101,473.79 306,510.17 47,632.85 354,143.02 105,445.55 105,445.55 336,453.04 10,885.33 347,338.37 212,915.25 3,924.31 216,839.56 107,547.55 8,552.31 116,099.86 1,068,871.56 70,994.80 1,139,866.36 -37,347.77 -1,044.80 -38,392.57 17,121.08 17,121.08 -48,193.75 -48,193.75 -31,072.67 .00 -31,072.67 -68,420.44 -1,044.80 -69,465.24 -5,520.00 -5,520.00 586,763.04 71,516.27 658,279.31 -30,183.04 -30,183.04 $ 482,639.56 $ 70,471.47 $ 553,111.03 The accompanying notes are an integral part of these statements. -7- CITY OF CHUBBUCK EXHIBIT 4 COMBINED STATEMENT OF CASH FLOWS ALL PROPRIETARY FUND TYPES YEAR ENDED SEPTEMBER 30, 1989 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . -56,290.36 -2,922.00 -59,212.36 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments . . . . . . . . -30,000.00 -30,000.00 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . -28,735.85 -555.53 -29,291.38 CASH AND CASH EQUIVALENTS AT OCTOBER 1, 1988 . . . . . . . . . . . . . 594,852.43 -146.14 594,706.29 CASH AND CASH EQUIVALENTS AT SEPTEMBER 30, 1989 . • • • • . • • . . • . $ 566,116.58 $ -701.67 $ 565,414.91 The accompanying notes are an integral part of these statements. M Water, Sewer and Garbage Internal Enterprise Service CASH FLOWS FROM OPERATING ACTIVITIES: Fund Fund Totals Net income or (loss) from (Exhibit 3) $ -68,420.44 $-1,044.80 $ -69,465.24 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation . . . . . . . . . . . . . . 120,410.32 3,223.03 123,633.35 Increase in accounts receivable -14,614.34 -14,614.34 Increase in accounts payable . 14,790.22 14,790.22 Increase in deposits payable. . . . . . 3,040.00 188.24 3,228.24 Increase in lease payable . . . . . . . 8,750.00 8,750.00 Decrease in accrued interest -881.25 -881.25 Transfer to General Fund. . . . . . . . -5,520.00 -5,520.00 Total adjustments . . . . . . . . . 125,974.95 3,411.27 129,386.22 Net cash provided by operating activities. . . . . . . . . . . . 57,554.51 2,366.47 59,920.98 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of fixed assets . . . . . . . . . -56,290.36 -2,922.00 -59,212.36 CASH FLOWS FROM FINANCING ACTIVITIES: Bond principal payments . . . . . . . . -30,000.00 -30,000.00 NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS . . . . . . . . . . . . . -28,735.85 -555.53 -29,291.38 CASH AND CASH EQUIVALENTS AT OCTOBER 1, 1988 . . . . . . . . . . . . . 594,852.43 -146.14 594,706.29 CASH AND CASH EQUIVALENTS AT SEPTEMBER 30, 1989 . • • • • . • • . . • . $ 566,116.58 $ -701.67 $ 565,414.91 The accompanying notes are an integral part of these statements. M CITY OF CHUBBUCK STATEMENT OF REVENUES AND EXPENDITURES BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 1989 REVENUES: 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 . . . . . . . . . . . . Sale of Land . . . . . . . . . . . . . EXHIBIT 5 1,185,964.00 1,265,411.98 79,447.98 30,000.00 43,196.19 Variance 71,850.00 83,094.44 Favorable Budget Actual (Unfavorable) $ 639,356.00 $ 656,114.11 $ 16,758.11 184,000.00 209,286.05 25,286.05 7,000.00 24,521.03 17,521.03 254,608.00 288,052.61 33,444.61 20,000.00 19,822.00 -178.00 35,000.00 26,037.91 -8,962.09 36,000.00 33,458.84 -2,541.16 10,000.00 8,119.43 -1,880.57 1,185,964.00 1,265,411.98 79,447.98 30,000.00 43,196.19 13,196.19 71,850.00 83,094.44 11,244.44 27,150.00 25,639.50 -1,510.50 12,000.00 31,108.97 19,108.97 30,000.00 19,614.83 -10,385.17 150,000.00 90,000.00 -60,000.00 Total revenues . . . . . . . . . . 1,506,964.00 1,558,065.91 51,101.91 EXPENDITURES: General Government . . . . . . . . . . Public safety . . . . . . . . . . . . Parks and recreation . . . . . . . . . Highways and streets . . . . . . . . . Total expenditures . . . . . . . . EXCESS REVENUE OR (EXPENDITURES) . . . . TRANSFERS FROM OTHER FUNDS . . . . . . . 437,025.00 337,770.67 -99,254.33 691,500.00 713,659.92 22,159.92 85,431.00 91,743.57 6,312.57 393,008.00 328,572.38 -64,435.62 1,606,964.00 1,471,746.54 -135,217.46 -100,000.00 86,319.37 186,319.37 5,520.00 5,520.00 EXCESS SOURCES (USES) . . . . . . . . . . $ -100,000.00 $ 91,839.37 $ 191,839.37 The accompanying notes are an integral part of these statements. -9- CITY OF CHUBBUCK STATEMENT OF CHANGES IN FIXED ASSETS ENTERPRISE FUNDS YEAR ENDED SEPTEMBER 30, 1989 EXHIBIT 6 The accompanying notes are an integral part of these statements, -10- Storage Land, and Buildings Distribution and ENTERPRISE FUND FIXED ASSETS: System Equipment Totals Balance at cost - September 30, 1988 $ 3,152,929.00 $ 192,232.78 $ 3,345,161.78 Additions: Equipment . . 55,290.36 56,2.90.36 Deletions: Land Balance at cost - September 30, 1989 3,152,929.00 248,523.14 3,401,452.14 Less accumulated depreciation . . . --1,223,389.52 -125,267.35 -1,348,656.87 Balance at net - September 30, 1989 $ 1,929,539.48 $ 123,255.79 $ 2,052,795.27 INTERNAL SERVICE FUND FIXED ASSETS: Balance at cost - September 30, 1988 . $ 89,561.38 $ 89,561.38 Additions: Equipment . . . . . . . . . . . . $ .00 2,922.00 2,922.00 Balance at cost - September 30, 1989 . 92,483.38 92,483.38 Less accumulated depreciation . . . . .00 -21,122.00 -21,122.00 Balance at net - September 30, 1989 . $ .00 $ 71,361.38 $ 71,361.38 The accompanying notes are an integral part of these statements, -10- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 1989 (1) A. 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. B. 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 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 -11- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1989 (1) B. FIXED ASSETS - CONTINUED 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. C. 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. D. BUDGETS AND BUDGETARY ACCOUNTING The City follows budgeting procedures as outlined in the Idaho State Code. Budgets are prepared on the modified accrual basis. E. 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. -12- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1989 (1) F. 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. G. 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 Description: 9-30--88 Acquisitions Deletions Land and buildings $ 554,335.34 $35,000.00 Street improvements 11,264.00 Plant machinery and equipment . . . . Improvements other 827,032.87 $ 68,466.61 than buildings. . 285,673.30 Balance at 9-30-89 $ 519,335.34 11 ,264.00 895,499.48 285,673-30 Totals . . $1,678,305.51 $ 68,466.61 $35,000.00 $1,711,772.12 NOTE: Enterprise fund properties are reported separately and are not included in the above balance at September 30, 1989. -13- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 3G, 1989 (3) LONG-TERM DEBT (ENTERPRISE FUND): The annual requirements to amortize long --term revenue bonds as of September 30, 1989 are as follows: Year Ending September 30 1989 $ 15,000.00 1990 35,000.00 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 $ 970,000.00 (4) OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES Generally accepted accounting principles require disclosure, as part of the Combined Statements - Overview, of certain information concerning individual funds as follows: A. Summary of disclosures of debt service requirements to maturity for all types of outstanding debt. This requirement is met by Note (3)- B. Summary of disclosures of changes in general fixed assets by major asset class. This requirement is met by note (2). (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 $2,441.25 including interest at a rate of 10% annually. -14-- CITY OF CHUBBUCK NOTES TO FINANCIAL STATEMENTS - CONTINUED SEPTEMBER 30, 1989 (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. The payroll for employees covered by PERS for the year ended September 30, 1989 was $841,974.37, the City's total payroll was $881,460.93. The total number of City employees is 47 of which 41 are participants of PERS. 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, 1989 was $123,191.21, which consisted of $74,851.55 from the City and $48,339.66 from employees; these contributions represented 8.89%, 5.34% -general and 6.40%-police/fireman, of covered payroll, respectively. 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, 1989 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- H W [L H m w A z E� FK W a 0 a w M 0 Dw V) H z w W w x C7 d W W a a d H H f3. U 0 Q1 p Q� N Cd O 03 Cd In a� F3 m tto a� cd m td U a a f1i ul Rj 0 r -I i, U 'c7 C 00 m r -I w O M t, a� fa. N C!} a-3 Cd b -3 w r� r� A O I) 4-3 .4 U UJ E- H p f N N --Zr p N O— N Qi O r-- CO 00 CO dl O� U� CT% Lfl CT O, F- UN at Oi U -, O'S f f Q\ Ui O r— .– — r — r f Q1 Q', II 4-1 • • s~ G • .H + • II w �--• r Lfl 40 oO Cd co %. 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U •rt N Q) Q) r U Q) (3) .J-- S 4-J � a cd to y U n) V) x ro F4 -1 7- CITY OF CHUBBBUCK CASH ON HAND, IN BANKS, AND INVESTED SEPTEMBER 30, 1989 CASH BALANCE IN FUNDS: General . . . . . . . . . . . . . . . . . . . $219,36o.21 Capital projects . . . . . . . . . . . . . . . 215,295.22 Special revenue . . . . . . . . . . . . . . . 9,240.87 Enterprise . . . . . . . . . . . . . . . . . . 566,116.58 Internal service . . . . . . . . . . . . . . . -701.67 CASH ON DEPOSIT: Petty cash . . .. . . . . . . . . . . . . . . Checking accounts: Key Bank Health insurance - stop loss $ Court fund . . . . . . . . . . . . . . . General fund . . . . . . . . . . . . . . . Water systems revenue - enterprise. . Sewer reserve bonds . . . . . . . . . . . . Sewer revenue bonds . . . . . . . . . . . . Water reserve fund . . . . . . . . . . . . Water revenue bonds . . . . . . . . . . . . Highway streets capital improvement . Fire capital improvement . . . . . . . . . Sewer system repair , . . . . . . . . . . . Park sedication fund . . . . . . . . . . . Park fund #2 . . . . . . . . . . . . . . . Local improvement district Investments: Key Bank - general . . . . . . . . . . . . First Interstate - general . . . . . . . . West One - general . . . . . . . . . . . . Key Bank - waterworks . . . . . . . . . . . State Pool - waterworks . . . . . . . . . . Idaho Central - waterworks . . . . . . . . Key Bank - waterworks . . . . . . . . . . . Key Bank - sewer revenue . . . . . . . . . First Security - water revenue Merrill Lynch - capital projects State Pool - Sewer System R & M . . . . . . Key Bank - Local Improvement District #1 Idaho Central Credit Union - general . . . Total cash in banks . . . . . . . . , . 8,014.47 2,360.86 3,789.88 31,924.13 1.12 54,316.14 1.46 24,250.23 1.16 107.22 1.50 2,652.34 2,918.06 1.71 30,000.00 75,000.00 100,000.00 25,000.00 50,000.00 100,000.00 100,000.00 113,910.55 66,011.28 105,854.16 103,760.78 9,239.16 7r, nn SCHEDULE 1 $1,009,311.21 $ 170.00 130,340.28 $1,009,311.21 The accompanying notes are an integral part of these statements. -18- CITY OF CHUBBUCK TABLE 1 SUMMARY OF MATURITIES AND INTEREST ON SEWER REVENUE BONDS BY YEAR SEPTEMBER 30, 1989 Total Due 40,350.00 69,800.00 68,600.00 67,400.00 66,200.00 65,000.00 68,800.00 67,300.00 65,800.00 69,300.00 67,500.00 65,700.00 68,90o.o0 66,800.00 69,700.00 67,300.00 64,900.00 67,500.00 64,800.00 67,100.00 69,100.00 65,800.00 67,500.00 68,900.00 $1,590,050,00 The accompanying notes are an integral part of these statements. -19- Interest Interest Principal Due Due Due Year April 1 October 1 October 1 1989 $ 25,350.00 $ 15,000.00 1990 $ 24,900.00 24,900.00 20,000.00 1991 24,300.00 24,300.00 20,000.00 1992 23,700.00 23,700.00 20,000.00 1993 23,100.00 23,100.00 20,000.00 1994 22,500.00 22,500.00 20,000.00 1995 21,900.00 21,900.00 25,000.00 1996 21,150.00 21,150.00 25,000.00 1997 20,400.00 20,400.00 25,000.00 1998 19,650.00 19,650.00 30,000.00 1999 18,750.00 18,750.00 30,000.00 2000 17,850.00 17,850.00 30,000.00 2001 16,950.00 16,950.00 35,000.00 2002 15,900.00 15,900.00 35,000.00 2003 14,850.00 14,850.00 40,000.00 2004 13,650.00 13,650.00 40,000.00 2005 12,450.00 12,450.00 40,000.00 2006 11,250.00 11,250.00 45,000.00 2007 9,900.00 91900.00 45,000.00 2008 8,550.00 8,550.00 50,000.00 2009 7,050.00 7,050.00 55,000.00 2010 5,400.00 5,400.00 55,000.00 2011 3,750.00 3,750.00 60,000.00 2012 1,950.00 1,950.00 65,000.00 Totals $359,850.00 $385,200.00 $845,000.00 Total Due 40,350.00 69,800.00 68,600.00 67,400.00 66,200.00 65,000.00 68,800.00 67,300.00 65,800.00 69,300.00 67,500.00 65,700.00 68,90o.o0 66,800.00 69,700.00 67,300.00 64,900.00 67,500.00 64,800.00 67,100.00 69,100.00 65,800.00 67,500.00 68,900.00 $1,590,050,00 The accompanying notes are an integral part of these statements. -19- CITY OF CHUBBUCK TABLE 2 SUMMARY OF MATURITIES AND INTEREST ON WATER REVENUE BONDS BY YEAR SEPTEMBER 30, 1989 Totals $15,900.00 $ 15,900.00 Principal due September $ 15,000.00 15,000.00 15,000.00 20,000-00 20,000.00 20,000.00 20,000.00 $125,000.00 The accompanying notes are an integral part of these statements. -20- $ 22,500.00 21,600.00 20,700.00 24,800.00 23,600.00 22,400.00 21,200.00 $156,800.00 Interest Interest due due Year Numbers March 1 September 1 1990 26-28 $ 3,750.00 $ 3,750.00 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 $15,900.00 $ 15,900.00 Principal due September $ 15,000.00 15,000.00 15,000.00 20,000-00 20,000.00 20,000.00 20,000.00 $125,000.00 The accompanying notes are an integral part of these statements. -20- $ 22,500.00 21,600.00 20,700.00 24,800.00 23,600.00 22,400.00 21,200.00 $156,800.00 Year of Levy 1) CITY OF CHUBBUCK TABLE 3 SEVEN YEAR SUMMARY OF TAX LEVIES SEPTEMBER 30, 1989 Value Levy Tax 1982 $125,878,960.00 .003471 $437,756.00 1983 110,367,077.00* .004074 452,173.00 1984 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 * 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. -21- Jk 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 Report on Internal Accounting Controls Based Solely on a Study and Evaluation Made as a Part of an Examination of the General Purpose or Basic Financial Statements We have examined the general purpose financial statements of the City of Chubbuck for the year ended September 30, 1989, and have issued our report thereon dated January 4, 1990. As part of our examination, we made a study and evaluation of the system of internal accounting control to the extent we considered necessary to evaluate the system as required by generally accepted auditing standards and the standards for financial compliance audits contained in the U.S. General Accounting Office Standards for Audit of Governmental Organizations, Programs, Activities, and Functions. For the purpose of this report, we have classified the significant internal accounting controls in the following categories: Cash Expenditures Payroll Fixed Assets Budgets Purchasing Revenues The purpose of our study and evaluation was to determine the nature, timing, and extent of the auditing procedures necessary for expressing an opinion on the City's financial statements. Our study and evaluation was more limited than would be necessary to express an opinion on the system of internal accounting control taken as a whole or on any of the categories of controls identified above. Management is responsible for establishing and maintaining a system of internal accounting control. In fulfilling this responsibility, estimates and judgments by management are required to assess the expected benefits and related costs of control procedures. The objectives of a system 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 financial statements in accordance with generally accepted accounting principles. Because of inherent limitations in any system of internal accounting control, errors or irregularities may nevertheless occur and not be detected. Also, projection of any evaluation of the system to future periods is subject to the risk that procedures may become inadequate because of changes in conditions or that the degree of compliance with the procedures may deteriorate. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 • POCATELLO, IDAHO 83205 • PHONE 20612335000 I'L, I' r II I -, Honorable Mayor and Members of the City Council Page 2 our study and evaluation made for the limited purpose described in the first paragraph would not necessarily disclose all material weaknesses in the system. Accordingly, we do not express an opinion on the system of internal accounting control of the City of Chubbuck taken as a whole or on any of the categories of controls identified in the first paragraph. However, our study and evaluation disclosed no condition that we believe to be a material weakness. This report is intended solely for the use of the City of Chubbuck, its Federal audit cognizant agency, and other Federal agencies, and should not be used for any other purpose. • •� Pocatello, Idaho, January 4, 1990. 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 MEMBERS OF American Institute of Certified Public Accountants Idaho Society of Certified Public Accountants Compliance Report Based on an Examination of General Purpose or Basic Financial Statements Performed in Accordance With the Standards for Audit Issued by the U.S. General Accounting Office. We have examined the general purpose financial statements of the City of Chubbuck for the year ended September 30, 1989, and have issued our report thereon dated January 4, 1990. Our examination was made in accordance with generally accepted auditing standards and the standards for financial and compliance audits contained in the Standards for Audit of Governmental Organizations, Programs, Activities, and Functions, issued by the U.S. General Accounting Office, and accordingly included such tests of the accounting records and such other auditing procedures as we considered necessary in the circumstances. Management is responsible for the City's compliance with laws and regulations. In connection with our examination referred to above, we selected and tested transactions and records to determine the City's compliance with laws and regulations. The results of our tests indicate that for the items tested, the City of Chubbuck complied with provisions of laws and regulations noncompliance with which could have a material effect on the general purpose financial statements. Nothing came to our attention that caused us to believe, that for the items not tested, the City of Chubbuck was not in compliance with laws or regulations noncompliance with which could have a material effect on the general purpose financial statements. C JONES Y & HAT l Pocatello, Idaho, January 4, 1990. 416 SOUTH 4TH AVENUE • P.O. BOX 4987 0 POCATELLO, IDAHO 83205 9 PHONE 2081233-5000 f