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2017
HUBHUCI( ioaxo CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 TABLE OF CONTENTS Title Page 1 Table of Contents 2-3 Introductory Section 4 Letter of Transmittal 5-7 List of Principal Officials 8 Organizational Chart 9 Financial Section Independent Auditor's Report 10-11 Management Discussion and Analysis 12-21 Statements of Net Position 22 Statements of Activities 23 Balance Sheets - Governmental Funds 24 Statements of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds 25-26 Statements of Position - Proprietary Funds 27 Statements of Revenues, Expenses, and Changes in Net Position - Proprietary 28 Statements of Cash Flows - Proprietary Funds 29-30 Statement of Fiduciary Net Position - Recreational Program Fund 31 Statement of Changes in Fiduciary Net Position - Recreational Program Fund 32 Notes to Financial Statements 33-46 2 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2017 TABLE OFCONTENTS-CONTINUED Required Supplementary Information 47 Budgetary Comparison Schedule - General Fund 48 Budgetary Comparison Schedule - Highway, Streets and Roads 49 Schedule of Employer's Share of Net Pension Liability 50 Schedule of Employer Contributions 51 Notes to Required Supplementary Information 52 Other Supplementary Information 53 Combining Balance Sheet - Nonmajor Governmental Funds 54 Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 55 Statements of Position -Internal Service Funds 56 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 57 Budgetary Comparison Schedule -Nonmajor Governmental Funds 58 Statistical Section 59 Statistical Section -Table of Contents 60 Financial Trends 61-68 Revenue Capacity 69-72 Debt Capacity 73-75 Operating Information 76-78 Compliance Section 79 Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards 80-81 Schedule of Findings and Responses 82 3 INTRODUCTORY SECTION n www.citvofchubbuck.us 5160 Yellowstone, PO Box 5604 Chubbuck, ID 83202 (208) 237-2400 phone (208) 238-2371 fax MAYOR Kevin England March 28, 2018 COUNCIL MEMBERS Josh Ellis Annette Baumeister Melanie Evans Ryan Lewis The Honorable Mayor Kevin England, Members of the City Council, and Citizens of the City of Chubbuck: Idaho State Law requires that all general-purpose local governments with an annual budget that exceeds two hundred fifty thousand dollars submit copies of their audited financial statements to the legislative council. The statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GARS) by a firm of licensed certified public accountants. Pursuant to those requirements, we hereby issue the comprehensive annual financial report for the City of Chubbuck for the fiscal year ended September 30, 2017. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive frame -work of internal control that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Deaton &Company, Chartered, a firm of licensed certified public accountan ts has issued an unmodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2017. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it. Profile of the City of Chubbuck The City of Chubbuck (population 14,644) was incorporated in 1950. Chubbuck is located in the southeastern portion of the State of Idaho. Chubbuck has a land area of 4.19 square miles and is bordered by the City of Pocatello, with its own population of 54,746. The City is located in Bannock County with a 2017 estimate census population of 84,377. The City is empowered to levy property taxes on both real and personal property within the city limits. It also is empowered by state statue to extend its corporate limits by annexation, which it had done from time to time. The City of Chubbuck operates under the Council -Mayor form of government. Policy -malting and legislative authority are vested in a governing council (City Council) consisting of the Mayor and four other members, all elected on a non-partisan basis. The Council is responsible for passing ordinances, adopting budget, appointing committees, approval of internal control framework and hiring city management. The Mayor acts as the Chief Executive Officer and oversees the day-to-day operations of the City. The Mayor and Council members are elected at large for 4 -year terms, with two of the Council members standing for election every two years. The City of Chubbuck provides a full range of services. These services include Public Safety (police, fire, animal control, and building inspection); Environmental Health (sanitation, water, waste water treatment and storm water management); Transportation (street & highway maintenance and traffic engineering); Recreational (parks and recreation); Neighborhood Quality (engineering, planning and development, community services) and Administration (mayor/council, finance, elections, human resources, legal risk management, and information technology). In addition to general government activities, the Mayor and City Council exercise, or have the ability to exercise, oversight of the Chubbuck Development Authority, a legally separate corporation. Therefore, its activities are included as a separate component unit in the reporting entity, The annual budget serves as the foundation for the City of Chubbuck's financial planning and control. After reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests during May. The Chief Financial Officer and Mayor are responsible for preparing a draft budget for the Council. The budget is prepared by fund, function and activity, and includes information on the past year, current year estimates and requested appropriation for the next fiscal year. Prior to August 1, the City's Chief Financial Officer and the Mayor submit the proposed budget to the City Council for review. The City Council holds public hearings and may add to, subtract from or change the proposed budget, but may not change the form of the budget. Prior to August 30, the budget is legally enacted through passage of the annual appropriation ordinance (not in excess of the proposed budget) by the City Council. Expenditures may not exceed budgeted appropriations at the fund level. City management can legally amend or transfer appropriations within individual funds but not between funds which requires the approval of the City Council in a budget amendment, which follows a public notice, public hearing and amended ordinances adoption process similar to the adoption of the original budget. Budgets are integrated into the accounting system to facilitate management control during the year. The Council reviews service levels for all departments prior to entertaining budget requests for the next fiscal year. Revenue projections receive equal attention and the Council makes budget decisions sufficient to balance the budget against projected revenues. Cash balances and budget to actual trends are monitored monthly. The preparation of the comprehensive annual financial report was made possiUle by the dedicated service of the entire staff of the City and, in particular, the Clerk's Office. Each member of these departments has our sincere appreciation for the contributions made in the preparation of this project. Credit also must be given to the Mayor and the City Council for their support for maintaining high standards of professionalism in the management of the City of Chubbuck's finances. Respectfully submitted March 28, 2018 Rich Morgan City Clerk Daniel Christensen City Accountant CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2017 Title Name Elected Officials Mayor Kevin England Council President Josh Ellis Council Member Annette Baumeister Council Member Melanie Evans Council Member Ryan Lewis City Officials City Attorney Tom Holmes Public Works Director Rodney Burch Public Works Superintendent Bryan Hall City Clerk/Treasurer Rich Morgan Human Resource Officer Scott Gummersall Financial Officer Dan Christensen City Planner Paul Andrus Police Chief Randy Severe Computer Information Systems Sergei Tomin Parks & Recreation Bill Guinn Fire Chief Merlin Miller W z c�i � z � D OT � n _ _ O c z W A W = C D n � � Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208)232-5825 Members of Idaho Society of Certified Public Accountants Members of American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Chubbuck as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City's basic financial statements as listed in the table of contents. Management's Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor's Responsibility Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in 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 financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Opinions In our opinion, the financial statements referred to above present fairly, in all material respects, the respective financial position of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Chubbuck, as of September 30, 2017, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and pension schedules on pages 12-21, 48-49 and 50-51, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chubbuck's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedule - nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. , The prior year summarized comparative information has been derived from the City's 2016 audited financial statements and, in our report dated March 27, 2017, we expressed unqualified opinions on the respective financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information. This information is consistent, in all material respects, with the audited financial statements from which it has been derived. The introductory and statistical sections have not been subjected to the auditing procedures applied in the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any assurance on them. Other Report ing Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated March 27, 2018, on our consideration of the City of Chubbuck's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Chubbuck's nternal control over financial reporting and compliance. buck, Idaho March 27, 2018 City of Chubbuck Management's Discussion and Analysis For the Year Ended September 30, 2017 As management of the City of Chubbuck, we offer readers of the City of Chubbuck's financial statements this narrative overview and analysis of the financial activities for the fiscal year ended September 30, 2017. We encourage readers to consider the information presented here in conjunction with additional information that we have furnished in our letter of transmittal. Financial Highlights • The assets and deferred outflows of the City of Chubbuck exceed its liabilities and deferred inflows at the close of the most recent fiscal year by $51,428,730 (net position). • The governments net position increased by $5,854,608. Approximately 35 percent of this increase, $2,048,856, is attributed to capital contributions from the Chubbuck Development Authority. • At the end of the current fiscal year, unassigned fund balances for the general fund was $2,410,350 or 40 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $124,570, and operating expenses increased by $345,256. These increases are due to a combination of increases in services used and increases in operating costs. • During the current fiscal year, City of Chubbuck's debt overall had a decrease of $1,770,827 (Including compensated absences). The decrease was primarily due to the reduction of accrued payroll, compensated absences, bonds and notes payable, and net pension liabilities. • The Chubbuck Impact Area Waste Water Collection Authority has been blended with the governmental activities in the primary government do to the implementation of GASB Statement No, 61. Overview of the Financial Statements This discussion and analysis is intended to serve as an introduction to the City of Chubbuck's basic financial statements. The City's basic financial statements are comprised of three components: 1) governmental -wide financial statements, 2) fund financial statements and 3) notes to the financial statements. This report also contains other supplementary information in addition to the basic financial - statements themselves. Government -wide financial statements. The government -wide financial statements are designed to provide readers with a broad overview of the City's finances, in a manner similar to a private -sector business. The Statement of Net Position presents information on all of the City's assets, deferred outflows and liabilities with deferred inflows, with the difference between each reported as net position. Over time, increases or decreases in net position may serve as a useful indicator of whether the financial position of the City's is improving or deteriorating. 12 The Statement of Activities presents information showing how the City's net position changed during the fiscal year. All changes in the assets are reported when the underlying event giving rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows in the future fiscal periods (e.g. uncollected taxes and earned but unused compensated absences). Both of the government -wide financial statements distinguish functions of the City of Chubbuck that are principally supported by taxes and intergovernmental revenues (governmental activities) from functions that are intended to recover all or a significant portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of Chubbuck include general government and administration, public safety, parks, and highway streets and roads. The business -type activities of the City include water and sewer, and sanitation operations. Fund Financial Statements. A fund is a grouping of related accounts that is used to maintain control over resources that have been segregated from specific activities or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance with finance - related legal requirements. All of the funds of the City of Chubbuck can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds. Governmental Funds. Governmental funds are used to account for essentially the same functions reported as governmental activities in the government -wide financial statements. However, unlike the government -wide financial statements, governmental fund financial statements focus on current sources and uses of spendable resources, as well as on balances of spendable resources available at the end of the fiscal year. Such information may be useful in evaluation a government's near-term financing equipment. Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to compare the information presented for governmental funds with similar information presented for governmental activities in the government -wide financial statements. By doing so, readers may better understand the long-term impact of the government's near-term financing decisions. Both the governmental funds balance sheet and the governmental fund statements of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between governmental funds and governmental activities. The City of Chubbuck maintains seven individual governmental funds. Information's is presented separately in the governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and changes in fund balances for the General Fund and Highway, Streets, and Road Fund, which are the City's two major governmental funds. Data from the other five funds are combined into a single, aggregated presentation. Individual fund date for each of these non -major governmental funds is provided in the form of combining statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget of its general fund, major funds, and its non -major funds. Budgetary comparison schedules have been provided for these funds to demonstrate compliance with these budgets. The basic governmental fund financial statements may be found on pages 22-26 of this report. F�? Proprietary Funds. The City of Chubbuck maintains two different types of proprietary funds. Enterprise funds are used to report the same functions presented as business -type activities in the government -wide financial statements. The City of Chubbuck uses enterprise funds to account for its Water department, Waste Water department, and Sanitation department. Internal service funds are an accounting device used to accumulate and allocate costs internally among the City of Chubbuck's various functions. The City of Chubbuck uses an internal service fund to account for its central garage operations. Because this service predominantly benefits business type functions rather than the governmental type functions, it has been included within the business type activities in the financial statements. Proprietary funds provide the same type of information as the government -wide financial statements, only in more detail. The proprietary fund financial statements include the operational and financial date from both the types of funds. The Water, Sewer, and Sanitation funds are major funds and their information is shown in separate columns. The internal service fund and the non -major enterprise funds are combined into a single, aggregated presentation in the proprietary funds financial statements. Individual fund data for the non -major enterprise fund is provided in the form of coming in statements elsewhere in this report. The City of Chubbuck adopts an annual appropriated budget for its proprietary funds. However, the City does not provide budgetary comparison schedules for proprietary funds. The basic proprietary fund financial statements may be found on pages 27-30 of this report. Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government -wide financial statements because the resources of those funds are not available to support the City of Chubbuck's own programs. The accounting used for fiduciary funds is similar to proprietary funds. The City of Chubbuck adopts an annual appropriated budget for its fiduciary fund. However, the City does not provide budgetary comparison schedules for fiduciary funds. The fiduciary fund financial statements can be found on pages 31-32 of this report. Notes to the Financial Statements. The notes provide additional information that is essential to a full understanding of the data provided in the government -wide and fund financial statements. The notes to the financial statements may be found on pages 33-46 of this report. Other information. In addition to the basic financial statements and accompanying notes, this report also presents certain required supplementary information concerning the City's budgeted expense and revenues versus actual expenses and revenues. The combining statement referred to earlier in connection with non -major governmental funds is presented following the required supplementary information on budget comparison. Government -wide Financial Analysis As noted earlier, net position may serve over time as useful indicator of government's financial position. In the case of the City of Chubbuck, assets exceeded liabilities by $51,428,730 as of September 30, 2017. The largest portion of the City of Chubbuck's net position is reflected in its net investment in capital assets (e.g., land, building, equipment, improvements, work -in -process and infrastructure), less accumulated depreciation and any debt used to acquire those assets that is still outstanding. The City uses these capital assets to provide service to citizens; consequently these assets are not available for future spending. Although the City's investment in capital assets is reported net of related debt, it should be noted that the resources needed to repay this debt must be provided from other sources, since the capital assets themselves cannot be used to liquidate these liabilities. Below is a summary of the City of Chubbucl<'s Net Position statement. City of Chubbuck's Net Position Governmental Activities $ 5,589,101 $ 5,014,785 Business Activities $37,108,205 $43,877,939 Total Capital assets 2017 2016 2017 2016 2017 45,912,291 2016 Total assets 39,847,466 37,489,250 49,9421764 47,694,100 891790,230 ASSETS Curren[and other assets $ 5,589,101 $ 5,014,785 $35,288,838 $37,108,205 $43,877,939 $42,122,990 Capital assets 34,258,365 32,474,465 11,653,926 101585,895 45,912,291 43,0601360 Total assets 39,847,466 37,489,250 49,9421764 47,694,100 891790,230 85,183,350 DEFERRED OUTFLOWS Pension 321,496 1,166,662 141,888 467,663 463,384 1,634,325 LIABILITIES Long-term liabilites outstanding 19,379,160 20,060,527 16,636,420 17,827,932 36,015,580 37,888,459 Other iia bilites 522,274 575,247 1,961,392 1,806,367 21483,666 21381,614 19,901,434 20,635,774 18,597,812 19,634,299 38,4991246 40,270,073 DEFERRED INFLOWS Pension 225,927 699,852 99,711 273,629 325,638 973,481 NET POSITION Net investment in captial assets 16,829,117 11,138,839 91217,942 6,8141991 26,047,059 17,953,830 Restricted - - 168,131 166,731 168,131 166,731 Unrestricted 3,212,484 6,181,447 22,001,056 211272,113 25,213,540 27,453,560 Total net position 20,041,601 171320,286 31,387,129 28,253,835 51,428,730 451574,121 An additional portion of the City of Chubbuck's net position $168,131, represent resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $25,213,540, may be used to meet the governments' ongoing obligation to citizens and creditors. As of September 30, 2017, the City is able to report positive balances in all three categories of net positionI both for the government as a whole, as well as for its separate governmental and business - type activities. At the end of the current fiscal year, 94 percent of the liabilities are made up of noncurrent liabilities. The increase in noncurrent liabilities is due to net pension liabilities being implemented under GASB 68. This primarily represents notes payable and bonds discussed in note 10 pages 40-42 of the notes to financial statements. 15 Governmental activities. Governmental activitieskey elements are broken down in the following charts. Government activities increased net position by $2,721,315 and business -type activities increased net position by $3,133,294. The City of Chubbuck's direct charges to users of governmental services made up $547,760. These charges are for park rentals, building permits and other fees related to public safety and administration. Public safety expenditures, the largest portion in fiscal year 2017, include the fire department and police department and accounts for 55 percent. The second largest portion of expenditures is the building inspection and street department which accounts for 19 percent. General government accounts for 10 percent in expenditures. Below is summary of the City of Chubbuck's Changes in Net Position. REVENUES Program revenues: Charges for services Operating grants and contributions Capita[ grants and contributions General revenue: Property taxes and sales tax Othertaxes Other Total Revenues EXPENSES General government Publicsafety Building Inspection and street Parks and recreation Health, welfare, and other Water Sewer Sanitation JAWWC Authority Total expenses NET CHANGE IN NET POSITION NFT POSITION beginning Prior Period Adj usbnent NET POSITION ending City of ChuUbuck's Changes in Net Positiml Governmental Activities Business Activities Total 2017 2016 2017 2016 2017 2016 684,496 $ 615,597 $ 8,724,8?8 $ S,6Si,310 $ 9,409,314 � 9,226,907 71,329 43,890 134,662 - 205,991 43,890 2,354,109 2,6671268 - - 2,354,109 2,667,268 5,642,004 5,3661613 - - 5,642,004 51366,613 1,524,907 1,510,898 - - 1,524,907 1,5101898 861,761 875,756 736 86,100 862,497 961,856 - - 2,363,OD9 11,138,606 11,080,022 8,860,216 81697,410 19,998,822 191777,432 880,247 17,320,286 24,670,047 26,253,835 24,712,669 45,574,121 391 896,297 - - 880,217 896,297 4,617,82E 4,548,754 - - 4,627,821 4,548,754 1,6251721 11686,979 - - 11625,721 11686,979 601,054 591,638 - - 601,054 591,638 831443 97,080 - - 83,443 97,080 - - 1326,443 1,7931535 1,726,443 1,793,535 - - 2,363,OD9 2,319,135 2,363,009 2,319,135 - - 2,637,470 11221,934 1,637,470 1,221,934 6D9,036 609,036 609,036 609,036 8,417,292 8,429,784 5,726,922 5,334,604 14,144,214 13,764,388 2,721,314 2,650,238 31133,294 3,362,806 5,854,608 61013,044 382,716 778,360 178,360 $20,041,601 $17,320,286 $31,387,129 528,253,835 $51,428,730 $ 45,574,121 Q: Revenue by Source - Government Activities Chargesforservices Other 861,761 8% r $684,496 6% (lthertaxes 7.574. Operating grants and contributions 71,329 Capital grants and contributions 2,354,109 21% Property taxes and sales tax 5,642,004 51% 1� Expenses and Program Revenues — Governmental Activities 5,000,000 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,000,000 500,000 o Asr��o� \` Z a° P `a\(o eo0 cw`°ca a°a` ��a�� S��` pec¢ \a\c��oSQ� Qav-`' �ear�e `�P 0� ■ Expenses ■ Revenue • The majority of the City of Chubbuck's governmental activities' revenue is received from property and sales tax (47 percent). This amount would be 56 percent of the revenue received without this fiscal year's capital grants contributions from Chubbuck Development Authority. • When all taxes are added together, they make up 81 percent of the budget. • When revenues are compared to expenses, it shows that none of the City of Chubbuck's programs are self-supporting. They all require tax support to continue at their current level of service. For the most part, increases in expenses closely paralleled inflation and growth in the demand for servicesI No significant transaction occurred outside of the Major funds for fiscal year 2017. No significant losses or revenues were received during the year. The major fund in the City is the general fund. Significant transactions within the general fund this year mainly consisted of payments of personnel, law enforcement expenses, fire department expenses, and street maintenance. Business -type activities. Businesses -type activitieskey elements are broken down in the following charts. Gain from sale of assets 0.01% Charges for services, 99.99% Expenses and Program Revenue -Business Type Activities • One of the major sources of the Ciry of Chubbuck's business -type activities' revenue is received from charges for services (99 percent). Currently, the Ciry of Chubbuck's business type activities do not use property taxes for any type of funding. • When revenues are compared to expenses, it shows that all of the City of Chubbuck's programs are self-supporting. 19 Financial Analysis of the Government's Funds As noted earlier, the City of Chubbuck uses fund accounting to ensure and demonstrate compliance with finance -related legal requirements. Governmental funds. The focus of the City of Chubbuck's governmental funds is to provide information on near-term inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City of Chubbuck's financing requirements. In particular, unreserved fund balance may serve as a useful measure of the government's net resources available for spending at the end of the fiscal year. At the end of the current fiscal year the City of Chubbuck's governmental funds reported combined ending fund balances of $4,392,154. Of which $3,939,114 of this total is unassigned fund balance (89 percent). The general fund is the chief operating fund of the City of Chubbuck. In the general fund, the City budgeted for no change in the fund balance. Operating revenues were greater than operating expenditures. Due to other financing sources and uses, the net change in the general fund increased $453,155 for fiscal year 2017. As a measure of liquidity, it may be useful to compare both unassigned fund balance and total fund expenditures. Unassigned fund balance represents 40 percent of total general fund expenditures. Proprietary funds. The City of Chubbuck's proprietary fund statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net positions of the respective proprietary funds are Water: $5,836,754, Sewer: $12,051,614, and Sanitation: $3,886,006. The water fund had an increase in net position of $1,078,430; the sewer fund had an increase in net position of $1,499,913; and the sanitation fund.had an increase in net position of $471,195. General Fund Budgetary Highlights The City made no revisions to the original appropriations approved by the City Council. The general fund actual revenues were more than budget, and expenses were less than budget. The difference accounts for a $453,157 increase in the general fund balance. The major variances in expenditures were due to an increase in the law enforcement, building inspection, health and welfare, and capital outlays expenditures. The highway, streets and roads fund actual revenues were more than budget, and expenses were more than budget. The difference accounts for a $75,639 increase in the highway, streets, and roads fund balance. The major variances in expenditures were due to an increase in personnel, street signing, equipment maintenance, and capital outlays. Capital Asset and Debt Administration Capital assets. The City of Chubbuck's investment in capital assets for its governmental and business - type activities as of September 30, 2017 amounts to $45,912,292 (net of accumulated depreciation). This investment in capital assets includes land, machinery, equipment, other improvements, and infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year was $4,871,293. The increase in assets includes contributions from the Chubbuck Development Authority of $2,183,518. 20 Land Building & Imp. Machinery & Equip. Infrastructure Work in Progress CIAWWCA: Land Infrastructure Office Equipment Water Rights Total 386,226 386,226 18,183,193 18,1837193 2,421,167 $ 41,509,938 $ 38,619,846 $ 19,337,492 - 386,226 386,226 - 18,183,193 18,183,193 17,125 17,125 17,125 2,421,167 2,421,167 21421,167 $ 17,875,196 $ 60,847,430 $ 56,495,042 Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 40 of this report. Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total long-term debt outstanding of $36,015,580. Of this amount, $13,592,840 is comprised of notes to the Department of Environmental Quality for waste water infrastructure. Long-term debt also includes bonds with a remaining balance of $1,193,843 used for purchasing water shares. The State of Idaho mandates a general obligation debt limit of 2% of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has no general obligation debt. The limit totaled $15,354,160 on September 30, 2017. Therefore $15,354,160 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 10 on pages 40-42 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Mayor and City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400. Fil City of chubbuck`a Capital Assets Governmental Activities Business Activities Total 2017 2016 2017 2016 2017 2016 $ 266,080 $ 266,080 $ 948,382 $ 948,382 $ 1,214,462 $ 1,2140462 41598,022 31792,356 7,100,999 61540,055 111699,021 10,3321411 41537,166 4,259,068 71379,017 7,353,841 11,916,183 11,612,909 9,589,192 9,SG6,986 - - 91589,192 91566,986 3,950,059 2,165,937 11470,802 594,626 51420,861 2,760,563 386,226 386,226 18,183,193 18,1837193 2,421,167 $ 41,509,938 $ 38,619,846 $ 19,337,492 - 386,226 386,226 - 18,183,193 18,183,193 17,125 17,125 17,125 2,421,167 2,421,167 21421,167 $ 17,875,196 $ 60,847,430 $ 56,495,042 Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 40 of this report. Long-term debt. At the end of the current fiscal year, the City of Chubbuck had total long-term debt outstanding of $36,015,580. Of this amount, $13,592,840 is comprised of notes to the Department of Environmental Quality for waste water infrastructure. Long-term debt also includes bonds with a remaining balance of $1,193,843 used for purchasing water shares. The State of Idaho mandates a general obligation debt limit of 2% of the assessed market value of taxable property within the City boundaries. The City of Chubbuck currently has no general obligation debt. The limit totaled $15,354,160 on September 30, 2017. Therefore $15,354,160 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 10 on pages 40-42 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Mayor and City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400. Fil ASSETS Current assets Cash and cash equivalent Property taxes receivable Intergovernmental receivables Prepaid expenses Other accounts receivable Noncurrent assets Restricted assets Bond reserves Utility deposits Advance to joint venture Capital assets Accumulated depreciation DEFERRED OUTFLOWS Pension CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2017 LIABILITIES Current liabilities Accounts payable Accrued payroll Accrued bond interest Current portion compensated absences Current portion of bonds payable Current portion of long-term debt Water deposits Noncurrent liabilities Bonds payable Note payable Accrued compensated absences Net pension liabilities Advance payable DEFERRED INFLOWS Pension NET POSITION Net investment in capital assets Restricted for bond service Unrestricted Governmental Business -type Development Activities Activities Total Authority $ 4,805,990 $ 19,588,989 $ 24,394,979 $ 2,724,612 295,522 - 295,522 27,616 409,781 - 409,781 - 74,907 - 74,907 - 2,901 777,263 780,164. 77,253 5,589,101 20,366,252 25,955,353 2,829,481 - 168,131 168,131 - 336,187 336,187 - 17,418,268 17,418,268 41,509,938 19,337,492 60,847,430 (7,251,573) (7,683,566) (14,935,139) 19,379,160 34,258,365 29,576,512 63,834,877 18,597,812 38,499,246 297,944 39,847,466 49,942,764 89,790,230 2,829,481 321,496 141,888 463,384 304,759 434,003 738,762 297,944 150,478 74,120 224,598 - - 67,037 8,251 24,332 8,251 - 91,369 - - - 132,355 952,144 336,187 132,355 - 952,144 - 336,187 - 522,274 1,961,392 2,483,666 297,944 19,379,160 16,636,420 36,015,580 - - 1,193,843 1,193,843 - - 14,603,027 14,603,027 - 268,147 97,323 365,470 - 1,681,765 742,227 2,423,992 - 17,429,248 - 17,429,248 - 19,379,160 16,636,420 36,015,580 - 19,901,434 18,597,812 38,499,246 297,944 225,927 99,711 325,638 - 16,829,117 9,217,942 26,047,059 - - 168,131 168,131 - 3,212,484 22,001,056 25,213,540 2,531,537 $ 20,041,601 $ 31,387,129 $ 51,428,730 $ 2,531,537 22 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2017 Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION General Business -type Development Activities Activities Total Authority $ (5,307,360) $ 3,132,558 $ (2,174,802) $ (2,787,514) 5,642,004 5,642,004 2,538,869 201,328 Program Revenues Total 1,323,581 - 1,323,581 - 98,064 - 98,064 14,273 Operating Capital Net 763,697 763,697 77,253 8,028,674 Charges for Grants and Grants and (Expense) Development Expenses Services Contributions Contributions Revenue Authority Functions/Programs Primary Government: Governmental activities: General government $ 880,217 $ 414,674 $ - $ - $ (465,543) $ - Law enforcement 3,310,716 31,942 - - (3,278,774) - Firecontrol 1,307,105 214,172 31,180 - (1,061,753) - Building inspection 199,336 - - - (199,336) - Street 1,426,385 - - 2,126,109 699,724 - Parks and recreation 601,054 12,728 - - (588,326) - Health and welfare 83,293 - - - (83,293) - Otherspecial funds 150 - 40,149 - 39,999 - CIAWWCAuthority 609,036 10,980 - 228,000 (370,056) - 8,417,294 684,496 71,329 2,354,109 (5,307,360) - Business -type activities Water 1,726,443 2,728,684 134,662 - 1,136,903 - Sewer 2,363,009 3,803,714 - - 1,440,705 - Sanitation 1,637,470 2,192,420 - - 554,950 - 5,726,922 8,724,818 134,662 - 3,132,558 - Total primary government $ 14,144,216 $ 9,409,314 $ 205,991 $ 2,354,109 $ (2,174,802) $ - Component Unit: Chubbuck Development Authority $ 2,787,514 $ (2,787,514) $ 2,787,514 $ (2,787,514) Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue NET CHANGE IN NET POSITION BEGINNING NET POSITION ENDING NET POSITION General Business -type Development Activities Activities Total Authority $ (5,307,360) $ 3,132,558 $ (2,174,802) $ (2,787,514) 5,642,004 5,642,004 2,538,869 201,328 - 201,328 - 1,323,581 - 1,323,581 - 98,064 - 98,064 14,273 - 736 736 - 763,697 763,697 77,253 8,028,674 736 8,029,410 2,630,395 2,721,314 3,133,294 5,854,608 (157,119) 17,320,286 28,253,835 45,574,121 2,688,656 $ 20,041,601 $ 31,387,129 $ 51,428,730 $ 2,531,537 23 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2016 Highway, Streets, CIAWWC Other General and Roads Authority Governmental Fund Fund Fund Funds Total 2016 ASSETS Cash $ 2,240,808 $ 1,511,382 $ - $ 453,040 $ 4,205,230 $ 3,927,263 Accounts receivable 2,901 - - - 2,901 5,244 Property and sales taxes receivable 277,507 18,015 - - 295,522 275,315 Intergovernmental receivables 160,066 172,462 - - 332,528 320,105 Prepaid expense 74,907 - - - 74,907 73,439 Grant receivable 77,253 � 77,253 $ 2,756,189 $ 1,779,112 $ $ 453,040 $ 4,988,341 $ 4,601,366 LIABILITIES Accounts payable $ 49,501 $ 205,558 $ - $ - $ 255,059 $ 114,911 Accrued payroll 134,549 15,929 - - 150,478 330,851 Accrued compensated absences 55,113 11,924 - - 67,037 70,404 239,163 233,411 472,574 516,166 DEFERRED -INFLOWS OF RESOURCES Unavailable revenues -taxes 105,635 16,772 - - 122,407 108,968 Unavailable revenues -prepaid 1,041 165 1,206 - 106,678 16,937 - - 123,613 108,968 FUND BALANCES Committed - - - 453,040 453,040 565,911 Unassigned 2,410,350 1,528,784 - 3,939,114 3,410,321 2,410,350 1,528,764 453,040 4,392,154 3,976,232 $ 2,756,189 $ 1,779,112 $ $ 453,040 $ 4,601,366 Amounts reported for governmental activities in the Statement of Net Position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds, net of accumulated depreciation of $7,251,573. 34,258,365 32,474,465 Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds Property tax 123,613 108,968 Grant receivable - - Deferred outflows and inflows of resources related to pensions are applicable to future periods and, therefore, are not reported in the fund: Deferred outflows of resources related to pensions 321,496 1,166,662 Deferred inflows of resources related to pernslons (from pension schedule) (225,927) (699,852) Internal service funds are used to charge the costs of certain activities, such as employee health insurance and equipment maintenance to individual funds. The assets and liabilities of the Internal services funds applicable to governmental activities are included in governmental activities in fhe statement of net position. 551,060 354,338 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Accrued compensated absences (268,147) (281,618) Nel pension liability (1,681,765) (2,113,811) Advance payable (17,429,248) (17665,298) Nel position of governmental funds $ 20,041,601 18,812,748 See accompanying notes to financial statements ;o{ \; \ \;! \\ \ ({; (§R R \k (k E`B ; \\}\ ;o{ \; \ \;! \\ \ / (§R R \k (k E`B ; \\}\ / ) \k (k \\}\ ) Lo , \(d z ; �E |(! )46 0 /�\ 1 o — ~ - , 0 - !� :O ({/ _ o \ j46 0 OK\\ kf K! : a a c r !; R{§!!r §i5.6 M EL- DM<W - \{ - \va(\ !Www [.. © ® ]( »{!\ \ �{ /§§§ : {j[ / { «! 0n - -- ! [ 16 ° \00 {r ) TO i \{ ® �! ; {j/{ o | !! ; r2f_=° - \\ \ \ \�\\ \00 \E w \k \\\\ {\ \ \\ \ \ ; )§k (k{ ) ) E 15 /46 } 8 (\ ) )) j ) \|7) 3±! ;r! Za\< 3; )) ! 0 , ASSETS Current assets Cash and cash equivalents Accounts receivable Noncurrent assets Restricted assets Bond reserves Utility deposits Advance to joint venture Capital assets Accumulated depreciation DEFERRED OUTFLOWS Pension LIABILITIES Current Liabilities Accounts payable Payroll payable Accrued compensated absences Current portion of bonds payable Accrued interest Current portion of long-term debt Deposits Noncurrent Liabilities Revenue bonds payable, net unamodized premium Note payable Compensated absences Net pension liabilities Pension DEFERRED INFLOWS NET POSITION CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2016 Internal Internal Service Service Water Sewer Sanitation Total 2016 Funds 2017 Funds 2016 $ 6,043,021 $ 9,308,092 $3,980,408 $19,331,521 $ 18,089,739 $ 858,228 $ 590,598 316,552 308,712 151,999 777,263 700,984 - - 6,359,573 9,616,804 4,132,407 20,108,784 18,790,723 858,228 590,598 168,131 - - 168,131 166,731 - - - 334,237 1,700 250 336,187 308,274 - - - 17,418,268 - 17,418,268 17,665,298 - - 11,159,685 4,789,678 3,119,026 19,068,389 17,615,553 269,103 259,643 (2,663,415) (3,244,795) (1,520,677) (7428,887) (7,038,659) (254,679) (250,642) 8,998,638 18,964,851 1,598,599 29562,088 28,717,197 14,424 9,001 15,358,211 28,581,655 5,731,006 49670,872 47,507,920 872,652 599,599 55,417 49,987 36,484 141,888 467,663 159,397 208,289 35,531 403,217 306,715 80,486 87,911 27,064 25,290 21,766 74,120 50,908 - - 11,574 11,574 1,184 24,332 27,214 - - 132,355 - - 132,355 127,355 - - 5,072 - 3,179 8,251 8,299 - - 18,904 852,545 80,695 952,144 948,772 - - 334,237 1,700 250 336.187 308,274 - 688,603 1,099,398 142,605 1,930,606 1,777,537 80,486 87,911 1,193,843 - - 1,193,843 1,326,198 162,910 13,592,840 847,277 14,603,027 15,548,388 46,294 46,294 4,735 97,323 108,853 289,891 261,485 190,851 742,227 844,493 - 1,692,938 13,900,619 1,042,863 16,636,420 17 827 932 - 2,381,541 15,000,017 1,185,468 18,567,026 19,605,469 80,486 87,911 38,944 35,128 25,639 99,711 273,629 Net investment in capital assets 6,988,258 1,544,883 670,377 9,203,518 7,924,112 14,424 9,001 Restricted for bond service 168,131 - - 168,131 166,731 - - Unrestricted 5,836,754 12,051,614 3,886,006 21,774,374 20,005,642 777,742 502,687 $12993,143 $13,596,497 $4,556,383 31,146,023 $28,096,485 $ 792,166 $ 511,688 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 241,106 $31,387,129 27 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2016 OPERATING REVENUES Service revenue Revenue used as security for revenue bond: Charges for services OPERATING EXPENSES Salaries and wages Personnel benefls Repairs and maintenance Supplies and tools Travel, meetings, and training Fuels and lubricants Telephone and communications Utilities Treatment- Pocatello Other purchased services Professional services Bad debt Depreciation OPERATING INCOME NONOPERATING REVENUE (EXPENSE) Interest expense Miscellaneous expense Gain (Loss) from asset disposal CAPITAL CONTRIBUTIONS Developer contributions CHANGES IN NET POSITION BEGINNING NET POSITION PRIOR PERIOD ADJUSTMENT ENDING NET POSITION Internal Internal Service Service Water Sewer Sanitation Total 2016 Funds 2017 Funds 2016 $ 1,402,486 $ 3,803,714 $ 1,804,280 $ 7,010,480 $ 6,758,555 $1,085,940 $1,146,181 1,326,198 - - 1,328,198 7,453,553 - - 2,728,884 3,603,714 1,804,280 8,336,678 8,212,108 1,065,940 1,146,181 600,872 556,869 398,084 1,555,845 1,371,525 - - 192,711 203,075 228,657 624,443 546,079 349,428 289,791 347,193 118,643 362,481 828,517 774,023 15,819 15,316 55,831 4,987 85,447 126,065 132,631 17,574 14,212 6,487 2,751 1,985 11,203 14,175 1,499 686 18,959 4,268 43,213 66,440 45,885 30,151 24,761 3,974 3,595 4,393 11,962 12,514 - - 171,199 31,348 3,854 206,401 204,290 14,532 15,107 - 1,297,146 - 1,297,146 1,334,004 - - 19,612 - 11,116 30,728 34,058 - - 49,191 42,191 32,323 123,705 75,360 372,423 297,915 6,631 812 1,531 8,774 10,544 - - 208,780 97.084 138,889 444,733 433,418 4,037 11,065 1,681.000 2,362,789 1,291,973 5,335,762 4,990,506 805,463 646,853 1,047,684 1,440,925 512,307 3,000,916 3,221,602 280,477 497,328 (45,443) - (41,112) (86,555) (87,686) - (220) - (220) - 735 735 86,100 (44,708) (220) (41,112) (86,040) (1,788) 75,454 59,208 134,662 - 75,454 59,208 134,662 1,078,430 1,499,913 471,195 3,049,538 3,219,816 11,914,713 12,096,584 4,085,188 $ 12,993,143 $13,596,497 $ 4,556,383 Adjustment to retlecl the c nsolitlallon of infernal service fund acfivltles relafetl to enterprise funds 83,756 Change In net position of husiness-NPe activities $ 3,133,294 m See accompanying notes to financial statements 280,477 497,328 24,698,309 511,688 14,360 176,360 $ 28,098,485 $ 792,165 $ 511,688 C r r N n M d' a OMJM OO NO W of L6 L of oS v m (6 n' n 'M' O W N I W ao Nr co .� ... 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O: Q E a 0 E y 0 w ¢ v o L LL o a� �+ w O o a'(a m 0 m L c Q O Oom waa� 0 OUdNo.�d0B (o�0w K Z LL t t t d LL N rn U LL Z U U U C '�.' ` N N U z QUUUz aQUZ en =a`(�0 n'JZ .Oz w w O O 0 Z m N Pi H J r z w w = N U j O 0 ¢ Z ¢ O = O N U W a Z O 0 a w N Pi k\\ � 4 e ; /k\ ( \kf ( \k\\ / _ / \»§ / cn § §§ §)\m 2§§\ek / ;§§!■k \ ` mw!]; ]§)LU :sw/°° | } _ ,d _�§§§§ o < (j) z (�»<°! # °°¥)> : d°] \ LU L) a. & , n / § § e\ k( § ) ` ! ) 7j /B $! § mq )§{|ƒk zo W)\,/j/ - \ -_){§®§\G\ ° - ,;<;!!#e \ )§ ±±2£ f 0 m \ \ \ CITY OF CHUBBUCK, IDAHO STATEMENT OF FIDUCIARY NET POSITION RECREATIONAL PROGRAMS FUND SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2016 Assets Cash Liabilities Accounts payable Net Position Held in trust for recreation programs 31 Recreation Programs Trust Fund 2017 $ 72,199 72,199 1,628 $ 70,571 See accompanying notes to financial statements 2016 $ 77,547 77, 547 $ 77,547 CITY OF CHUBBUCK, IDAHO STATEMENT OF CHANGES IN FIDUCIARY NET POSITION RECREATIONAL PROGRAMS FUND FOR THE YEAR ENDED SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2016 Additions Contributions: Registration fees Sponsorships Total additions Deductions Director's compensation Boy's baseball Girl's softball Tee/tiger ball Other expenses Total deductions Change in net position Net position -beginning of the year Net position -end of the year 32 Recreation Programs Trust Fund 2017 $ 64,685 10,450 75,135 5, 500 38,418 21, 868 13,893 2,432 82,111 (6,976) 77,547 $ 70,571 See accompanying notes to financial statements 2016 $ 67,845 13,683 81,528 5, 500 27,096 20,410 11, 676 805 65,487 16,041 61,506 $ 77,547 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 14) NOTE 1 - Summary of Sinnlficant Accounting Policies The City's financial statements comply with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements within the codification. The government -wide financial statements, including the enterprise funds and the fund financial statements for the proprietary funds, are also under GASB codification. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. Applicable GASB statements have been Implemented through GASB 77, A. Reporting Entity The City's financial reporting entity comprises the following Primary Government In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, "The Financial Reporting Entity'. Currently, the City reports two component unit; the Chubbuck Development Authority and the Chubbuck Impact Area Waste Water Authority. Discretely Presented Component Units Chubbuck Development Authority (CDA) One component unit reported in the combined financial statements represents the financial balances and transactions of the Chubbuck Development Authority (CDA). CDA Is a legally separate entity incorporated under the State of Idaho's urban renewal laws. CDA works with the City to develop blighted areas within the City using tax increment financing to fund projects. These projects could include providing infrastructures, purchasing land and demolishing blighted structures or rehabilitating structures to provide for low income housing, among others. All non -private projects are donated to the City of Chubbuck. The Board of Commissioners of the Authority consists of 7-9 members, which are appointed by the Mayor. Complete financial statements of the Authority can be obtained from the Treasury, City of Chubbuck, 5160 Yellowstone Ave, Chubbuck, Idaho 83202, Blend Component Unit Chubbuck Impact Area Waste Water Collection Authority (CIAW WCA) Effective September 1, 2007, Bannock County, Idaho, City of Pocatello, Idaho and the City of Chubbuck, Idaho entered Into a Joint Powers Agreement creating the Chubbuck Impact Area Wastewater Collection Authority for the purpose of financing, designing, acquiring, constructing, managing, and operating a sewage collection facility along with transmission mains and lift stations to serve those who own and operate a collection system under Idaho Law for the residents of the City of Chubbuck, Idaho. The Authority is a public entity of the State of Idaho, therefore, the Authority's income is exempt form Federal and Idaho income taxes. A three-member board governs the Chubbuck Impact Area Wastewater Collection Authority with one member representing Bannock County, one member representing the City of Pocatello and one member representing the City of Chubbuck. The City of Chubbuck provides loans to the Authority with no interest or maturity date. Outstanding balance of loans to the authority at year- end totaled $17,429,248. The City of Chubbuck has all rights and obligations of assets and liabilities within the Authority. Upon termination of this Agreement, title to all buildings, improvements, facilities, equipment and personal property held by the Authority shall vest in the City of Chubbuck. Complete financial statements of the Authority can be obtained from the Treasury, City of Chubbuck, 5160 Yellowstone Ave, Chubbuck, Idaho 83202, B. Basis of Presentation Government -wide Statements The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business- lype activities. Governmental activities generally are financed through taxes, intergovernmental revenues, and other non-exchange revenues. Business -type activities are financed in whole or in part by fees charged to external parties for goods or services. 33 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 14) NOTE 1 - Summary of Significant Accountina Policles !Continued, B. Basis of Presentation (continued) Fund Financial Statements Fund financial statements of the reporting entity are organized Into funds, each of which is considered to be separate accounting entities. Each fund Is accounted for by providing a separate set of self -balancing accounts that constitute Its assets, liabilities, fund equity, revenues, and expenditure/expenses. Funds are organized Into three major categories: Governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type. b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Governmental Funds General Fund The General Fund is the general operating fund of the City and Is always classified as a major fund. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Highway, Streets, and Roads Fund The Highway, Streets, and Roads Fund accounts for revenue and expenditures used for the construction and maintenance of the highways, streets, and roads. It is a major fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Proprietary Funds Enterprise Funds Enterprise funds are used to account for business -like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. The reporting entity includes the water, sewer and sanitation funds. Internal Service Funds Central Garage Each fund Is allocated the costs of operations based on equipment maintenance and repairs to their departments. Self-insured Employee Health Insurance Each fund contributes to this fund based on actuarial estimates. These contribution are needed to pay medical claims incurred by employees of each fund. C. Measurement Focus and Basis of Accounting Measurement focus Is a term used to describe "which" transactions are recorded wlthln the various financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the measurement focus applied. Measurement Focus On the government -wide Statement of Nel Position and the Statement of Activities, both governmental and business -like activities are presented using the economic resources measurement focus as defined in item b. below. 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 14) NOTE 1 - Summary of Slanificant Accounting Policies lContinuedl C, Measurement Focus and Basis of Accounting (Continued) In the fund financial statements, the "current financial resources" measurement focus or the "economic resources" measurement focus Is used as appropriate: a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are generally included on their balance sheets. Their operating statements present sources and uses of available spendable financial resources during a given period. These funds use fund balance as their measure of available spendable financial resources at the end of the period. b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash Flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity Is classified as net position. Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is Incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. The effect of Interfund activity has been eliminated from the government -wide financial statements. D. Budgets and Encumbrances Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adapted for the general, highway, streets and roads, and special revenue funds. All annual appropriations lapse at fiscal year end. Each month the City prepares a financial report that reflects the actual and budgeted financial data. A strict purchase order system is used in controlling and maintaining expenditures within budget categories. This data Is reviewed by the City Council. The City does not use the encumbrance method of accounting. E. Cash and Cash Equivalents For the purpose of the Statement oT Nel Position, "cash and cash equivalents" Includes ail demand, savings accounts, certificates of deposits, and state investing pools of the Cily. For the purpose of the proprietary fund Statement of Cash Flows, "cash and cash equivalents" include all demand and savings accounts, and certificates of deposit or short-term investments with an original maturity of three months or less. F. Property, Plant, and Equipment The accounting treatment for property, plant and equipment depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. Government -wide Statements In the government -wide financial statements, the assets are accounted for as capital assets. All capital assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated assets which are recorded at their estimated fair value at the date of donation. Estimated historical cost was used to value the majority of the assets acquired prior to September 30, 2003. Governmental fund Infrastructure assets were not capitalized prior to October 1, 2003 35 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 14) NOTE 1 - Summary of Slanificant Accounting Policies iContinue d) F. Property, Plant, and Equipment (Continued) Depreciation of all exhaustible capital assets is recorded as an allocated expense In the Statement of Activities, with accumulated depreciation reflected in the Statement of Net Position. Depreciation is provided over the assets' estimated useful lives using the straight-line method of depreciation. The range of estimated useful lives by type of asset Is as follows: Buildings Other structures Equipment Vehicles Fund Financial Statements 203D years 15-20 years 7-10 years 5-7 years In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are accounted for the same as in the government -wide statements. _ G. Restricted Assets Restricted assets include cash and investments of the general fund that are legally restricted as to their use. The primary restricted assets are related to employee benefits. Restricted assets include cash and investments of the proprietary fund that are legally restricted as to their use. The primary restricted assets are related to utility deposits and bond reserve requirements. When both restricted and unrestricted resources are available for use, It is the City's policy to use restricted resources first, then unrestricted resources as they are needed. H. Long-term Debt The accounting treatment of long-term debt depends on whether the assets are used in governmental fund operations or proprietary fund operations and whether they are reported in the government -wide or fund financial statements. All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the government -wide statements. The long-term debt consists primarily of notes payable, capital leases, and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. Debt proceeds are reported as other financing sources. Payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -wide statements. L Comparative data/reclassifications Comparative total data for the prior year has been presented in the fund financial statements in order to provide an understanding of the changes in assets and operations of these funds. Also, certain amounts presented In the prior year data have been reclassified in order to be consistent with the current year's presentation. J. Compensated Absence s The City's policies regarding vacation time permit employees to accumulate earned but unused vacation leave. The liability for these unpaid compensated absences is recorded as long-term debt in the government -wide statements. The current portion of this debt Is estimated based on historical trends. In the fund financial statements, governmental funds repod only the compensated absence liability payable from expendable available financial resources, while the proprietary funds report the liability as it Is ncurred. CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 14) NOTE 1 - Summary of Slanificant Accountina Policies (Continued) K. Equity Classifications Government -wide Statements Equity is classified as net position and displayed in three components: a. Net Investment in capital assets - Consists of capital assets including capital assets, net of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages notes, or other borrowings that are attributable to the acquisition, construction, or improvement of these assets. b. Restricted - Consists of assets with constraints placed on the use either by (1) external groups such as creditors, grantors, contributors, or laws or regulations of other governments; or (2) law through constitutional provisions or enabling legislation. c, Unrestricted - All other assets that do not meet the definition of "restricted" or "net investment In capital assets." Fund Statements In the fund financial statements, governmental funds report the following classifications of fund balance: Nonspendable items- This category Includes a portion of net resources that cannot be spent because of their form or because they must be maintained intact. This Includes inventories and prepaid items. Restricted items- This category includes resources where limitations are imposed by external entities, such as grantors and creditors, or to comply with laws and regulations of governments. Committed items -This category includes amounts that can only be used for the specific purposes determined by a formal action of the City's highest level of decision-making authority for the City. Commitments may be changed or lilted only by the Council taking the same formal action that Imposed the constraint originally. Assigned items -Assigned Items represent the City's intent to use certain resources for specific purposes. The City Council may establish the intended use of these funds for a designated purpose. Unassigned items- Represents the remainder of the City's equity in governmental fund -type balances in excess of the aforementioned classifications. It is the City's policy to use unrestricted fund balances in the following order: (1) Committed, (2) Assigned, (3) Unassigned. L. Use of Estimates The preparation of financial statements In conformity with generally accepted accounting principles requires the City to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. M. Pensions For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiducaiary net position have been determined on the same basis as they are reported by the Base an. For this purpose, benefit payments (including refunds of employee contriubtions) are reconized when due and payable in accordance with the benefit terms. Investments are reported at fair value. 37 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 14) NOTE 2 • Lepal Compliance - Butlpets Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the Cily Council a proposed operating budget for the fiscal year commencing the following October 1. The budget is prepared by fund at the function level and Includes information on the past year, current year estimates and requested appropriations for the next fiscal year. The City Council holds public hearings and may add to, subtract Gom or change appropriations, but may not change the form of the budget. Any changes in the budget must be within the revenues and reserves estimated as available to the City or the revenue estimates must be changed by an affirmative vote of a majority of the City Council. After public hearings and before the end of the fiscal year, the City Council formally adopts the budget. Budgetary control is excersied by function at the fund level. The City Manager is authorized to transfer budgeted appropriations within individual funds, but cannot alter the appropriations on a fund level without City Council approval. Expenditures may not legally exceed budgeted appropriations at the fund level. During the year, several supplementary appropriations may be necessary. NOTE 3 - Restricted Assets and Payable from Restricted Assets Assets have been set aside for special items and are restricted for that purpose. Restricted resources are used only after the unrestricted resources are depleted. To date cash has been restricted for the following items: Proprietary Bond reserves Utility deposits Total $ 168,131 336,187 $ 504,318 Bond reserves are amounts the City is legally required to reserve far the repayment of outstanding bonds. Water deposits are collected from individuals who receive utility services from the NOTE 4 - Propert assessing and collecting all property Cily. Money on deposit may be used to pay past due balances or Is returned when the payer slops utility service. Restricted utility deposits totaled $336,187 at year-end. property taxes y Tax Bannock County has the responsibility of Propert assessing and collecting all property taxes. Taxes levied for the year are payable in two installments due December 20th of the current year and June 20th of the following year. The County remits property taxes collected to the City monthly. y taxes are recognized as revenue when received for monthly reporting purposes. At year end, an accrual is made to recognize property taxes receivable at year end. At year end, $295,522 In outstanding property taxes were expected to be collected and remitted by the County. NOTE 5 - Tax Abatements The City has no tax abatement agreement as of September 30, 2017. NOTE 6 - Cash and Cash Equivalents and Investments Primary Government: Deposits at year an consist of the following: Deposits Cash in bank - carrying amount Restricted $ 504,318 Unrestricted 243394,979 $ 243899,297 Fiduciary Fund: Cash $ 72,199 $ 72,199 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 14) NOTE 6 - Cash and Cash Equivalents and Investments ,Continued) Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end, the carrying amount of the City's deposits (cash and certificates of deposit) was $24,971,496 and the bank balance was $21,439,416. The deposits were covered by collateralized accounts or federal depository insurance of $250,000 per bank. The City uses various commercial banks to limit their exposure to custodial credit risk, however, some of the City's deposits including the State of Idaho, Local Government Investment Pool (LGIP) at year-end were not insured nor collateralized in the amount of $3,366,543. The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The reported value of the pools is the same as the fair value of the pool shares. Investments - The City has no investments Component Unit - Chubbuck Development Authority (CDA): Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted $ 2,724,612 Bank Deposits -Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end the carrying amount and bank balance of CDA's deposits (cash and certificates of deposit) was $2,724,612. At year-end, all the Authority's deposits were held in the LGIP. Deposits in the LGIP are not insured or guaranteed by the Federal Deposit Insurance Corporation, the Slate of Idaho or any other government agency. CDA's deposits in the bank at year. end were subject to custodial credit risk. The State Treasurer's Investment Pools (LGIP) operates in accordance with appropriate state laws and regulations. The report ed value of the pools is the same as the fair value of the pool shares. Investments - The CDA has no investments Component Unit - Chubbuck Impact Area Waste Water Collection Authority (CIAW WCA): Deposits and Investments - The CIAW WCA has no deposits or Investments. Deposits at year end consist of the following: Deposits Cash in bank -carrying amount Unrestricted Bank Deposits -Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end the carrying amount and bank balance of CIAWWCA's deposits (cash and certificates of deposit) was $0. At year-end, all the Authority's deposits were held in a financial Institution. All deposits were guaranteed by the Federal Deposit Insurance Corporation and were not subject to custodial credit risk. NOTE 7 - Receivables All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging delinquent balance report. Historically 100 % of property taxes have been collected, therefore, there is no allowance for uncollectible property lax receivables. Receivables as of year-end for the City's business -type funds are as follows: CIAW WC Water Sewer Sanitation Authority Total Accounts Receivables $ 353,199 $ 336,692 $ 173,107 $ - $ 8622998 Allowance for Doubtful Accounts (36,647) (27,980) (21,108) - (85,735) $ 316,552 $ 308,712 $ 151,999 $ - $ 777,263 NOTE 8 - Concentration of Credit Risk Interest Rate Risk is the risk that changes in interest rates will adversely affect the value of a deposit. The Cily manages its exposure to declines In fair value by limiting the average maturity of its deposits to one year or less, or redeemable on demand with no penalty. Credit Risk Is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 14) NOTE 8 - Concentration of Credit Risk IContinuedl Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single Issuer. Exclusive of the Slate of Idaho LGIP, the City's deposits In any one Issuer does not represent a concentration of total credit risk. The funds in the State of Idaho LGIP are in a variety of investments which are required to have an A quality credit rating or better. Balance The City is subject to credit risk on deposits in banks that exceed the FDIC maximum insured balance amount. Additionally, the City grants credit to customers in the City for utility service. This extension of credit potentially subjects the City to credit risk. NOTE 9 - Chances in Caoital Assets A summary of general capital assets of year end Is as follows: - - 2,421,167 - Beginning 2,421,167 594,626 Ending 295,232 Balance Additions Deletions Balance Nondepreciable assets 61540,055 $ - $ - $ 266,080 Land $ 266,080 41,506 7,379,017 17,8751196 Work in process 21165,937 11840,581 56,459 31950,059 Infrastructures 9,566,986 223206 - 9,5891192 Buildings and Improvements 31792,356 859,452 53,786 4,598,022 Vehicles and Equipment 4,259,068 337,020 587922 41537,166 CIAWWCA: Land 386,226 - - 3860226 Infrastructure 181183,193 - - 18,183,193 3816191846 3,059,259 169,167 41,509,938 Accumulated Depreciation 6,145,381 1184,008 77,816 7251,573 $ 32 474,465 $ 1 875 251 $ 91,351 $ 34 258 365 A summary of proprietary type capital assets at year end is as follows: Beginning Ending Balance Additions Deletions Balance Nondepreciable assets Land $ 948,382 $ $ $ 948,382 Water Rights Work In process Office Equipment Buildings and Improvements Vehicles and Equipment Accumulated Depreciation NOTE 10 - Lona -term Debt and Accrued Compensation Accrued Compensated Absence s: Current portion Noncurrent portion Governmental Business -type $ 67,037 $ 24,332 288,147 97,323 $ 335.184 $ 121655 Long-term Debt: The City's long-term debt Is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: As of year end, the governmental fund had no long-term deb[. m - - 2,421,167 - - 2,421,167 594,626 1,171,408 295,232 11470,802 17,125 - - 17,125 61540,055 5731944 13,000.00 7,100,999 7,353,841 66,682 41,506 7,379,017 17,8751196 118121034 349,738 19,337,492 7,289,301 448,770 54,506 7,683,565 $ 101585,895 $ 11363,264 $ 295,232 $ 11,653,927 Governmental Business -type $ 67,037 $ 24,332 288,147 97,323 $ 335.184 $ 121655 Long-term Debt: The City's long-term debt Is segregated between the amounts to be repaid from governmental activities and amounts to be repaid from business -type activities. Governmental Activities: As of year end, the governmental fund had no long-term deb[. m CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 14) NOTE 10 - Lona -term Debt and Accrued Compensation (Continued) Business -type activities: In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with on interest rate of 3.25% and semi-annual payments of $12,332 for 20 years. Current portion $ 18,904 Noncurrent portion 162 910 $ 181.814 At year-end the City was authorized, on a Ilne-of-credit, to borrowed $77,569,518 from the Department of Environmental Quality (DEQ) under four (4) separate loans. The four (4) loans have zero percent interest rate and are required to be paid in biannual installments over 20 years at the close of the loan. Al year-end all four loans were closed. The notes were used to finance the designing and constructing of the Chubbuck Northwest Sewer Interceptor. The notes could be used to finance services to provide environmental fled studies, public involvement, and agency permit applications. If funds allow, it could include the purchase of needed right-of-way for construction of the sewer system. Outstanding DEQ line of credit at zero percent interest, with biannual payment of $5,499 for 20 years, and a maturity date of November 1, 2030. Loan closed April 22, 2010. $ 148,584 DEQ line of credit at zero percent interest, with biannual payment of $204,750 for 20 years, and a maturity date of April 27, 2035. Loan closed March 5, 2015. 7,371,007 DEQ line of credit at zero percent interest, with biannual payment of $212,757 for 20 years, and a maturity date of May 17, 2033. Loan closed April 9, 2013. 6,808,227 DEQ line of credit at zero percent interest, with biannual payment of $3266 for 20 years, and a maturity date of April 27, 2035. Loan closed January 31, 2011. 117,567 $ 14,445,385 Less current portion 852,545 Noncurrent portion $ 13,592,840 The Water Revenue Bonds, Series 2011 was issued September 28, 2011, for 15 years in the amount of $1,930,000 at a premium of $110,330. The bond carries Interest rates between 2 and 4.75% and a maturity date of September 1, 2026. Bonds Payable: Water Revenue Bond less current port ion Noncurrent portion Net Premium Principal Total $ 66,198 $ 11260,000 $ 1,326,198 66,198 1,260,000 1,326,198 7,355 125,000 132,355 $ 58.843 $ 1,135,000 $ 1 193.843 Bond premiums, net amortization totaled $66,198. The bond premium and expenses are amort Notes Payable On June 4, 2008, the City Issued three notes to purchase assets needed in order to collect sanitation for the Clty. Notes one and two were issued at 5.50% and the third note at 5.25%. The third note was refinanced in 2009. The notes were issued for $936,576, $541,537 and $1,375,000 with monthly payments of $17,890, $6,985, and $9,321, respectively until the maturity date of May 5, 2013, 2016 and 2029, respectively. Note 1 was paid in irs entirely on May 61 2013, Note 2 was prematurely paid off on June 25, 2015. Notes Payable: Balance Note 1 $ Note 2 Note 3 927 972 927,972 Less current portion 80,695 Noncurrent portion $ 847 277 41 ized over fifteen (15) years, the life of the bond. Bond premium amortization of $7,355 for the year. Notes Payable On June 4, 2008, the City Issued three notes to purchase assets needed in order to collect sanitation for the Clty. Notes one and two were issued at 5.50% and the third note at 5.25%. The third note was refinanced in 2009. The notes were issued for $936,576, $541,537 and $1,375,000 with monthly payments of $17,890, $6,985, and $9,321, respectively until the maturity date of May 5, 2013, 2016 and 2029, respectively. Note 1 was paid in irs entirely on May 61 2013, Note 2 was prematurely paid off on June 25, 2015. Notes Payable: Balance Note 1 $ Note 2 Note 3 927 972 927,972 Less current portion 80,695 Noncurrent portion $ 847 277 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 14) NOTE 10 - Long-term Debt and Accrued Compensation IContinue dI Annual Debt Service Requirements for leases, bonds and notes payable 260,000 500,903 Year Ending Governmental Activities Business -type Activities September 30 Principal Interest Principal Interest 2018 $ 500 903 $ - $ - $ 1,078,462 79746 2019 - - 1,081,964 72965 2020 - - - 11090,595 65593 2021 - - 11099,352 57943 2022 - - 11108,242 50013 2023-2027 - - 5,436,662 112383 2028-2032 - - 4,244,701 - 2033-2035 - - 1,6751193 - $ $ 16,815,171 $ 438,643 Changes in long-term liabilities Long-term liability activity for the year was as follows: Governmental activities Compensated absences Business -type activities Bonds payable Ending Due within Notes payable Compensated absences NOTE 11- Pension Plan Plan Description: Beginning Ending Due within Balance Additions Reductions Balance one year $ 352,022 0 Long-term port 260,000 500,903 $ 517,741 Additions $ 335,184 one year $ 67,037 $ 352 022 $ 500 903 $ 517.741 $ 335,184 $ 1,101,476 $ 67,037 ion $ 268,147 Beginning $ 11380,000 120,000 $ 11 260,000 $ 125,000 Balance Additions Reductions Balance one year Long-term port 260,000 $ 125,000 16,497,160 - 941,989 15,555,171 952,144 136,067 117,202 131614 121,655 24,332 $ 18,013,227 $ 117,202 $ 1,193603 $ 16936,826 $ 1,101,476 ion $ 15.835,350 The City contributes to the Base Plan which is a cost-shadng multiple -employer defined benefit pension plan administerd by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI Issues a publicly available financial report that Includes financial statements and the required supplementary Information for PERSI. That report may be obtained on the PERSI website at www.persUdaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Boartl be active Base Plan members with at least len years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits: The Base Plan provides retirement, disability, dealth and survivor benefits of eligible members or beneficiaries. Benefits are based on members' years of service, age, and highest average salary. Members become fully vested in their retirement benefits with flue years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service Is 2.0% (2,3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. CY.' CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 14) NOTE 11 - Pension Plan, on nodl The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1 % minimum cost of living increase per year provided the Consumer Prive Index increases 1 % or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1 % minimum is subject to review by the Idaho Legislature. Member and Employer Contributions: Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by stale law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. The contribution rales for employees are set by stature at 60% of the employer rate for general employees and 72% for police and firefighters. As of June 30, 2016 it was 6.79% for general employees and 8.36% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.32% general employees and 11.66% for police and firefighters. The City's contributions were $542,206 for the year ended September 30, 2017, Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30,2017, the City reported a Ilability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, and the total pension liability used to calculate the net pension Ilability was determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the City's share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At June 30, 2017, the City's proportion was .1542148 percent. For the year ended September 30, 2017, the City recognized pension expense (revenue) of $391,629. At September 30, 2017, the City reported deferred outflows of resources and deferred inflows of resources relatedto pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 335,799 $ 218,381 Changes in assumptions or other Inputs 44,826 - Net difference between projected and actual earnings on pension plan investments - 1450231 Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions (68,306) (37,974) City contributions subsequent to the measurement dale 151,065 - $ 463,384 $ 325,638 $151,065 was reported as deferred outflows of resources related to pensions resulting from City contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability In the year ending, September 30, 2017. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2016 the beginning of the measurement period ended June 30, 2017 Is 4.9 and 5.5 for the measurement period June 30, 2016 years. 43 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 14) NOTE 11 - Pension Plan, ond) Other amounts reported as deferred outflows of resources and deferred Inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Year ended September 30, 2016 Actuarial Assumptions: Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year's earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59- 1322, Idaho Code, is 25 years. The total pension liability in the July 1, 201 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25 Salary increases 4.25%-10.00% Salary inflation 3.75 Investment rate of return 7.10%, net of investment expenses Cost -of -living adjustments 1% Modality rates were based on the RP — 2000 combined table for healthy males or females as appropriate with the following offsets: Set back 3 years for teachers No offset for male fire and police Forward one year for female fire and police Set back one year for all general employees and all beneficiaries An experience study was performed for the period July 1, 2007 Through June 30, 2013 which reviewed all economic and demographic assumptions other than mortality. Mortality and all economic assumptions were studied In 2014 for the pedod from July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2017 is based on the results of an actuarial valuation date of July 1, 2017. The long-term expected rale of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rales of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions In analyzing the System's asset allocallon. The assumptions and the System's formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System's assets. CL! 2018 227,735 2019 64,618 2020 (147,258) 2021 2022 Actuarial Assumptions: Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year's earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59- 1322, Idaho Code, is 25 years. The total pension liability in the July 1, 201 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25 Salary increases 4.25%-10.00% Salary inflation 3.75 Investment rate of return 7.10%, net of investment expenses Cost -of -living adjustments 1% Modality rates were based on the RP — 2000 combined table for healthy males or females as appropriate with the following offsets: Set back 3 years for teachers No offset for male fire and police Forward one year for female fire and police Set back one year for all general employees and all beneficiaries An experience study was performed for the period July 1, 2007 Through June 30, 2013 which reviewed all economic and demographic assumptions other than mortality. Mortality and all economic assumptions were studied In 2014 for the pedod from July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2017 is based on the results of an actuarial valuation date of July 1, 2017. The long-term expected rale of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rales of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions In analyzing the System's asset allocallon. The assumptions and the System's formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System's assets. CL! CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 14) NOTE 11 - Pension Plan (continuedl The best -estimate range for the long-term expected rate of return Is determined by adding expected Inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of January 1, 2017. Capital Market Assumptions Equites Sensitivity of the Employer's proport Expected Expected Strategic Strategic Asset Class Return Risk Normal Ranges Equites 70% 66%-77% Broad Domestic Equity 9.15% 19.00% 55% 50%-65% International 9.25% 20.20% 15% 10%-20% Fixed Income 3.05% 3.75% 30% 23%-33% Cash 2.25% 0.90% 0% 0%-5% Expected Expected Expected Real Expected Total Fund Return Inflation Return Risk Actuary 7.00% 3.25% 3.75% N/A Portfolio 6.58% 2.25% 4.33% 12.67% 'Expected arithmetic return net of fees and expenses Actuarial Assumptions Assumed Inflation —Mean 3.25% Assumed Inflation — Standard Deviation 2.00% Portfolio Arithmetic Mean Return 8.42% Portfolio Long -Term Expected Geometric Rate of Return 7,50% Assumed Investment Expenses -0.40% Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 7.10% Discount Rate: The discount rate used to measure the total pension liability was 7.10%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on these assumptions, the pension plans' net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan Investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan Investment expense but without reduction for pension plan administrative expense. ionate share of the net pension liability to changes in the discount rate: The following presents the Employer's proport ionate share of the net pension liability calculated using the discount rate of 7.10 percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (6.10 percent) or 1 -percentage -paint higher (8.10 percent) than the current rale: I% Decrease Current 1% Increase (6.10%) Discount Rate (8.10%) (7.10%) Employer's proportionate share of the net pension liability (asset) $ 51633,856 $ 214239992 $ (243,490) CF. CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 14) NO7E 11 - Pension an Icontinuedl Pension plan fiduciary net position: available financial report that Includes financial statements and the required supplementary Information for PERSI. That report may Detailed Information about the pension plan's fiduciary net position is available in the separately issued PERSI financial report. PERSI issues a publicly available financial report that Includes financial statements and the required supplementary Information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Payables to the pension plan: At September 30, 2017, the City reported payables to the defined benefit pension plan of $20,860 for legally required employer contributions and $13511 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. NOTE 12 • Rlsk Manaaement The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of substantial losses. The Clty has established a Health Insurance Fund for Insuring benefits provided to City employees and covered dependents which is included in the Internal Service Funds. Health benefits were self-insured up to a specific slop loss amount of $50,000, and an aggregate stop loss of $1,000,000 for 2017. Coverage from a private Insurance company Is maintained for losses in excess of the aggregate stop loss amount. All claims handling procedures are performed by a third party claims administrator. Incurred but not reported claims have been accrued as a liability based upon the claims administrator's estimate. The estimated liability does not Include any allocated or unallocated claims adjustment expense. All funds for the City participate in the program and make payments to the Health Insurance Fund based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability of $71,000 reported as accounts payable and accruals in the Health Insurance Fund is based on the requirements of Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be reported if information prior to the issuance of the financial statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. NOTE 13 - Subsequent Events Subsequent events were evaluated up to March 27, 2017, the date the financial statements were available to be issued. NOTE 14 - Other Postemolovment Benefits The City complies with Idaho's requirements under the Consolidated Omnibus Budget Reconciliation Acl (COBRA). The liability under slate requirements related to other post -employment benefits for the medical insurance COBRA program is not required fo be reported. The City does not participate In any other post -employment benefit (OPEB), �3 REQUIRED SUPPLEMENTARY INFORMATION 47 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERALFUND YEAR ENDED SEPTEMBER 30, 2017 Resources General property taxes and sales tax Franchise fees State sales and liquior taxes Parks revenue Licenses, permits and fines Grants Fire protection and prevention Leases and rents Interest income Donations Charges for services Other resources Amounts available for appropriations Charges to appropriations General government Law enforcement Fire control Building inspection Parks and recreation Health and welfare Capital outlays Total charges to appropriations EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from sale of assets NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) $ 4,9553700 $ 4,955,700 $ 4,9551700 $ 201,327 201,327 201,327 (23,637) 506,355 506,355 506,355 177,585 111858 11,858 11,858 (5,857) 236,832 2360832 236,832 69,117 31,180 31,180 31,180 (14,836) 214,172 214,172 214,172 (220,067) 931814 93,814 93,814 385,534 53,616 535616 121,239 67,623 71723 71723 71723 453,157 843025 84,025 843025 91196 93196 9,196 6,4051798 614053798 614733421 67,623 899,304 899,304 496,075 403,229 3,0381707 31038,707 31062,344 (23,637) 1,358, 893 11358,893 1,181, 308 177,585 180,201 180,201 186,058 (5,857) 571,827 571,827 502,710 69,117 68,456 68,456 83,292 (14,836) 297,697 297,697 517,764 (220,067) 61415,085 61415,085 63029,551 385,534 (9,287) (91287) 443,870 453,157 9,287 9,287 9,287 9,287 9,287 9,287 - 453,157 453,157 11957,193 1, 957,193 $ $ $ 2,410,350 $ 23 410,350 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2017 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources Property taxes $ 7473984 $ 747,984 $ 671,658 $ (76,326) Highway user's revenue 5463604 546,604 542,354 (41250) Highway HB 312 user's revenue 160,953 160,953 Grant revenue 283769 28,769 77,253 48,484 Road and bridge 115,074 1153074 175,062 59,988 Amounts available for appropriations 114383431 11438,431 116272280 188,849 Charges to appropriations Salaries and personnel benefits 7423500 7423500 559,763 182,737 Supplies 51500 51500 7,563 (21063) Utilities 6$00 61500 7,450 (950) Building maintenance 33000 3,000 41527 (11527) Professional services 14,000 14,000 35,828 (21,828) Street signing and marking 128,500 128,500 144,981 (16,481) Street construction and maintenance 467,681 4673681 382,427 85,254 Equipment maintenance 702750 703750 127,820 (57,070) Capital outlays - 285,833 (285,833) Total charges to appropriations 13438,431 12438,431 115561192 (117,761) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES Other Financing Sources Proceeds from sale of assets NET CHANGE IN FUND BALANCE BEGINNING FUND BALANCE ENDING FUND BALANCE $ m 71,088 71,088 4,550 4,550 - 75,638 75,638 1,453,126 1,453,126 $ 115283764 $ 11528,763 Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years' 50 2017 2016 2015 Employer's portion of the net pension liability 0.001542148 0,00145924 0.001459012 Employer's proportionate share of the net pension liability $ 21423,992 $ 21958,104 $ 11921,281 Employer's covered -employee payroll $ 41574,461 $ 41350,342 $ 41059,173 Employer's proportional share of the net pension liability as a percentage of its covered -employee payroll 53% 68% 47% Plan fiduciary net position as a percentage of the total pension liability 90.68% 87.26% 91,38% " GASB Statement No. 68 requires ten years of Information to be presented in this table, However, until a full 10 -year trend Is compiled, the Citywill present information for those years for which information is available Data reported is measured as of June 30, 2017 50 Schedule of Employer Contributions PERSI —Base Plan Last 10 —Fiscal Years Statutorily required contribution Contributions in relation to the statutorily required contribution Contribution (deficiency) excess Employer's covered -employee payroll Contributions as apercentage ofcovered-employee payroll * GASB -Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. Data is reported as a measurement of September 30, 2017. 51 2017 2016 2015 $ 542,206 $ 483,119 $ 462,609 $ 542,206 $ 483,119 $ 462,609 $ - $ - $ - $ 4,568,505 $ 4,350,342 $ 4,059,173 11.87% 11.11% 11.40 * GASB -Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which information is available. Data is reported as a measurement of September 30, 2017. 51 CITY OF CHUBBUCK, IDAHO NOTES TO REQUIRED SUPPLEMENTARY INFORMATION NOTE 1 - STEWARDSHIP COMPLIANCE AND ACCOUNTABILITY A. Basis of Budgetary Accounting The City is required by State law to adopt annual budgets on all governmental funds that cover a period from October 1, through September 30. All adopted budgets are prepared in accordance with the modified accrual basis of accounting and are adopted on a basis consistent with generally accepted accounting principles. B. Budgetary Information GENERALFUND Law Enforcement The City had expenditures in excess of budget of $23,637 due to an increase in law enforcement administration and supplies expenditures. These expenditures were paid using unspent revenues from other funds. unspent revenues from other funds. Building Inspection The City had expenditures in excess of budget of $5,857 due to an increase in Building Inspection personnel expenditures. These expenditures were paid using unspent revenues from other funds. Health &Welfare The City had expenditures in excess of budget of $14,836 due to an increase in Health and Welfare expenditures. These expenditures were paid using unspent revenues from other funds. Capital Outlays The City had expenditures in excess of budget of $220,067 due to an increase in equipment expenditures. These expenditures were paid using unspent revenues from other funds. Hiahway Streets and Roads The City had expenditures in excess of budget of $117,760 due to the increase in capital outlays, supplies, building and equipment maintenance, professional services and street signing..These expenditures were paid using unspent revenues from other funds. 52 OTHER SUPPLEMENTARY INFORMATION 53 N V NN (C) M 'V W m O Rma MSM N O ELO (o O LL v u C Z N N V dam' N (O d' N Y C N N O O U)N 3 M M LO (n O co W a LL a J mN N p N m m Z NN G LL LL z P a W (n N Z Z rC5i y oLO Q a N N O V LO 2 2 LL W 7 G L6 u) N W co a U Jm O 7 r� co p p a w U LL Y Q W a a �vi�w m a 0 rn rn mfw m2w� L.D o 0 U Q O 4) Lo Z w= Z U W > N LL QLLOa �� f» } X W W a y U C6 w V Y' w Z= Z z jO m LL KLL U)Cs (» ss LL O H N Z w w U LU a LU w N Qz h U m a W J U a N N 2 m J a LL p a N m Z Z m c W W LL N > U Z (7 7 W o k I- a U C Z LL z z @ 2 Z (7 Z Z O'n. U Z Z W o o X O U w W z w W Z m w CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2016 ASSETS Current assets Cash and cash equivalents Noncurrent assets Restricted assets Capital assets Accumulated depreciation LIABILITIES Current Liabilities Accounts payable Noncurrent Liabilities NET POSITION Net investment in capital assets Unrestricted Employee Central Health Garage Insurance 2017 Fund Fund Totals 2016 Totals $ - $ 858,228 $ 858,228 $ 590,598 - 858,228 858,228 590,598 269,103 - 269,103 259,643 (254,679) - (254,679) (250,642) 14,424 - 14,424 9,001 14,424 858,228 872,652 599,599 9,486 71,000 80,486 9,486 71,000 80,486 9,486 71,000 80,486 87,911 87,911 87,911 14,424 - 14,424 9,001 (9,486) 787,228 777,742 502,687 $ 4,938 $ 787,228 $ 792,166 $ 511,688 F3 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2017 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2016 OPERATING EXPENSES Personnel benefits 6,025 343,403 349,428 269,791 Repairs and maintenance 15,818 15,818 15,316 Supplies and tools 17,574 17,574 14,212 Travel, meetings, and training 11499 11499 686 Fuels and lubricants 30,151 30,151 24,761 Utilities 14,532 14,532 15,107 Professional services 372,423 372,423 2971915 Depreciation 41037 4,037 11,065 89,636 7151826 805,462 648,853 OPERATING Employee (553) 281,031 Central Health 497,328 Garage Insurance 2017 2016 Fund Fund Totals Totals OPERATING REVENUES 2803478 497,328 Service revenue $ 89,083 $ 9965857 $1,085,940 $11146,181 89,083 9963857 11085,940 11146,181 OPERATING EXPENSES Personnel benefits 6,025 343,403 349,428 269,791 Repairs and maintenance 15,818 15,818 15,316 Supplies and tools 17,574 17,574 14,212 Travel, meetings, and training 11499 11499 686 Fuels and lubricants 30,151 30,151 24,761 Utilities 14,532 14,532 15,107 Professional services 372,423 372,423 2971915 Depreciation 41037 4,037 11,065 89,636 7151826 805,462 648,853 OPERATING INCOME (LOSS) (553) 281,031 280,478 497,328 CHANGES IN NET POSITION (553) 2812031 2803478 497,328 BEGINNING NET POSITION 5,491 506,197 511,688 14,360 ENDING NET POSITION $ 4,938 $ 787,228 $ 792,166 $ 511,688 57 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2017 Budgeted Amounts Original Final Variance Actual Positive Amounts (Negative) Resources General property taxes and sales tax $ 18,600 $ 183600 $ $ (18,600) Interest income 8,300 83300 (8,300) Donations 80,000 803000 32,426 (47,574) Other resources 40,000 40,000 5,199 (34,801) Amounts available for appropriations 146,900 1463900 37,625 (109,275) Charges to appropriations Street guarantee fund 19,100 19,100 19,100 Juvenile referral fund 500 500 500 Court fund 42,100 42,100 150 411950 Road projects fund 13200 11200 11200 Parks fund 84,000 84,000 150,346 (66,346) Total charges to appropriations 146,900 146,900 150,496 (31596) NET CHANGE IN FUND BALANCE (112,871) (112,871) BEGINNING FUND BALANCE 565,911 565,911 ENDING FUND BALANCE $ $ $ 453,040 $ 453,040 See accompanying notes t0 financial statements STATISTICAL SECTION 59 Statistical Section This part of the City of Chubbuck's comprehensive annual financial report presents detailed information as a context for understanding what the information in the financial statements, note disclosures, and required supplementary information says about the government's overall financial health. Contents Page Financial Trends 61-68 These schedules contain trend information to help the reader understand how the City's financial performance and well-being have changed over time. Revenue Capacity 69-72 These schedulers contain information to help the reader assess the City's most significant local revenue. source, the property tax. Debt Capacity 73-75 These schedules offer demographic and economic indicators to help the reader understand the environment within which the City's financial activities take place. Operating Information 76-78 These schedules contain service and infrastructure data to help the reader understand how the information in the government's financial report relates to the services the government provides and the activities it performs. 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Volumetric charge for circuit breaker: $.80 per 1,000 gallons metered water. Ten Largest Water System Customers For The Fiscal Year Ended September 30,2017 per 1,000 gallon used Customer Pine Ridge JC LLC* Idaho Central Credit Union Circle Inn Trailer Park Camelot Trailer Parl< Pine Ridge Idaho LLC Travel Lodge Home Depot Meadows MHP Ridge Wind Residence Shiv Shakti Hospitality LLC Total Top Ten Consumers Total Usage *Part of multiple units Business Type Shopping Center Banking Mobile Home Park Mobile Home Park Apartment Complex Motel Home Improvement Store Apartment Complex Retirement Community Lodging 77 94,073 100.0% 778,491 12.1% of Total Top Ten Consumers % of Total Usage 44,823 47.6% 5.8% 8,461 9.0% 1.1% 7,601 8.1% 1.0% 6,078 6.5% 0.8% 5,820 6.2% 0.7% 4,611 4.9% 0.6% 4,528 4.8% 0.6% 4,361 4.6% 0.6% 3,916 4.2% 0.5% 3,874 4.1% 0.5% 94,073 100.0% 778,491 12.1% City of Chubbuck Statistical 1 nfo rmati o n Sewer Fund September 30, 2016 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue $ 3,803,714 Schedule of Sewer Rates Monthly Base Fee Regular Circuit Breaker Residential $ 45.50 $ 31.85 NWSI Residential 10.45 - Commercial rate for businesses North of the Interstate is $6.42 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $7.35per $1,000 gallons of water used. NWSI Commercial rate is winter water average usage divided by $6.85 and multiplied by $10.45. COMPLIANCE SECTION 79 Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, Idaho 83201-5278 (208)232-5825 Members of Idaho Society of Certified Public Accountants —1111AWN f-1 VA MW V Members of American Institute of Certified Public Accoumants REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standardsd issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business - type activities, each major fund, and the aggregate remaining fund information of City of Chubbuck, as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise City of Chubbuck's basic financial statements, and have issued our report thereon dated March 27, 2018. Internal Control Over Financial Reporting In planning and performing our audit, we considered City of Chubbuck's internal control over financial reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of City of Chubbuck's internal control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the City of Chubbuck's internal control over financial reporting. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses may exist that have not been identified. We did not identify any deficiencies in internal control over financial reporting, that we would consider to be a significant deficiency in internal control over financial reporting. Compliance and Other Matters As part of obtaining reasonable assurance about whether City of Chubbuck's financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho March 27, 2018 CITY OF CHUBBUCK, IDAHO SCHEDULE OF FINDINGS AND RESPONSES FOR THE YEAR ENDED SEPTEMBER 30, 2017 Findings Of Significant Deficiency And Responses No findings noted E3� From: Yuk, Vivian K <vivian.yuk@usbank.com> Sent: Monday, March 19, 2018 8:27 AM To: Dan Christensen Cc: Richard Morgan Subject: Annual Disclosure Report for City of Chubbuck Water Rev Bds Ser 2011 Hi Dan, Just a friendly reminder that the Annual Disclosure report for the above subject accounts need to be posted on EMMA by 3/29. If Agent not rec'd by 3/29, Agent shall file failure notice. I will be on vacation starting 3/26/18 and will return back to the office on 4/9/18. If you can submit the info to me this week by Thursday, I will have my specialist post the info by the due date. If you are unable to provide me the info by this Thursday, I will give you my back up, then you can submit it to him and cc me on the email. Thanks, Your early response would be greatly appreciated. Please do not hesitate to call me if you have any questions. Vivian Yuk Trust Review Analyst p. 206.344.4657 1 f. 206.344.4532 Vivian.yuk@usbank.com U.S. Bank Global Corporate Trust Services 1420 5th Avenue 7th Floor, Seattle, WA 98101 f PD-WA-T7CT f www.usbank.com We put the power of US to work for you For security reasons, U.S. Bank Global Corporate Trust Services requests that if customer confidential information is included in your email, please utilize the Cisco Registered Envelope Services (ORES) Secure Mail system if sending customer confidential information to U.S. Bank. U.S. BANCORP made the following annotations --------------------------------------------------------------------- Electronic Privacy Notice. This e-mail, and any attachments, contains information that is, or may be, covered by electronic communications privacy laws, and is also confidential and proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Instead, please reply to the sender that you have received this communication in error, and then immediately delete it. Thank you in advance for your cooperation. This email was scanned by Bitdefender From: Lewan, Steven I <steven.lewan@usbank.com> Sent: Thursday, March 29, 2018 10:28 AM To: Dan Christensen Subject: FW: Published Submission Confirmation Re: County of Bannock, City of Chubbuck, State of Idaho Parity Water Revenue Bond, Series 2011 Hi Dan, In compliance with the Continuing Disclosure Agreement, U.S. Bank National Association, acting in its capacity as Dissemination Agent, has provided the 9/30/17 Annual Disclosure Report for the above referenced issue via electronic transmission to Electronic Municipal Market Access (http://emma.msrb.org). Thanks, Steven Lewan Trust Review Analyst p. 206.344.4688 1 f. 206.344.4630 1 steven.lewan@usbank.com U.S. Bank Global Corporate Trust Services 1420 5th Avenue, 7th Floor, Seattle, WA 98101 1 PD-WA-T7CT I www.usbank.com For security reasons, U.S. Bank Global Corporate Trust Services requests that if customer confidential information is included in your email, please utilize the Cisco Registered Envelope Services (CRSS) Secure Mail system if sending customer confidential information to U.S. Bank. https://www.usbank.com/securemail -----Original Message ----- From: EMMANotifications@msrb.org [mailto:EMMANotifications@msrb.org] Sent: Thursday, March 29, 2018 9:25 AM To: Lewan, Steven I <steven.lewan@usbank.com> Subject: [EXTERNAL] Published Submission Confirmation Your Continuing Disclosure Submission has been published. SubmissionId: ES877987 Disclosure Type: FINANCIAL/OPERATING FILING Audited Financial Statements or CAFR (Rule 15c2-12) for the year ended 09/30/2017 Document Name: Financial operating Filing dated 03/29/2018 Disclosure Report Annual September 2017.pdf posted 03/29/2018 12:21:19 PM The following issuers are associated with this continuing disclosure submission: CUSIP6 State Issuer Name 171259 ID CHUBBUCK IDAHO WTR REV The following 9 Securities have been published with this continuing disclosure submission: Security: CUSIP - 171259BB9, Maturity Date - 09/01/2018 Security: CUSIP - 171259BC7, Maturity Date - 09/01/2019 Security: CUSIP - 171259BD5, Maturity Date - 09/01/2020 Security: CUSIP - 171259BE3, Maturity Date - 09/01/2021 Security: CUSIP - 171259BF0, Maturity Date - 09/01/2022 Security: CUSIP - 171259BG8, Maturity Date - 09/01/2023 Security: CUSIP - 171259BH6, Maturity Date - 09/01/2024 Security: CUSIP - 1712596]2, Maturity Date - 09/01/2025 Security: CUSIP - 171259BK9, Maturity Date - 09/01/2026 Please follow the link to view this submission: https://emma.msrb.org/ContinuingDisclosureView/ContinuingDisclosureDetails.aspx?subm issionld=ESB 77987 Please follow the link to make changes to this submission: http://dataport.emma.msrb.org/AboutDataport.aspx PLEASE DO NOT REPLY. This is a system -generated e-mail. If you need assistance please contact the MSRB at 202-838-1330 or you may obtain more information at www.msrb.org. This email was scanned by Bitdefender