HomeMy WebLinkAbout2018CITY OF CHUBBUCK, IDAHO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 20'18
Deaton & Company, Chartered
Certified Public Accountants
215 North 9� suite A
Pocatello,!❑ 83241-5278
(2081232-5825
Members of the Idaho Seciely of Certified Pub5c Accountants
Members of the American Instbte of Certified Public Acceuntards
Honorable Mayor and City Council
City of Chubbuck
PO Box 5604
Chubbuck, ID 83202
We have audited the 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 City of Chubbuck for the year ended September 30, 2018. Professional standards require
that we provide you with information about our responsibilities under generally accepted auditing standards
(and, if applicable, Government Auditing Standards and the Uniform Guidance), as well as certain
information related to the planned scope and timing of our audit. We have communicated such information
in our letter to you dated January 17, 2019. Professional standards also require that we communicate to
you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by City of Chubbuck are described in Note 1 to the financial statements. The City
has implemented the newest accounting policies that were adopted during the year as of September 30,
2018. The City has implemented GASB Statement up to GASB statement No. 82, Pension. We noted no
transactions entered into by City of Chubbuck during the year for which there is a lack of authoritative
guidance or consensus. All significant transactions have been recognized in the financial statements in the
proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ significantly
from those expected. The most sensitive estimate(s) affecting the Government-Wide's and enterprise fund
financial statements were:
Management's estimate of the life expectancies of capital assets, which were based on
managements' experience and like kind asset lives. We evaluated the key factors and
assumptions used to develop the life expectancies of capital assets in determining that it is
reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. In addition, none of the misstatements
detected as a result of audit procedures and corrected by management were material, either individually or
in the aggregate, to each opinion unit's financial statements taken as a whole.
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or auditing
matter, whether or not resolved to our satisfaction, that could be significant to the financial statements or
the auditor's report. We are pleased to report that no such disagreements arose during the course of our
audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated March 28, 2019.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves application
of an accounting principle to City of Chubbuck's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as City of Chubbuck's auditors. However, these
discussions occurred in the normal course of our professional relationship and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the management discussion and analysis, schedules of budget
and actual, and pension schedules, which are required supplementary information (RSI) that supplements
the basic financial statements. Our procedures consisted of inquiries of management regarding 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 did not audit the RSI and do not express an opinion or provide
any assurance on the RSI.
We were engaged to report on combining statements, which accompany the financial statements but are
not RSI. With respect to this supplementary information, we made certain inquiries of management and
evaluated the form, content, and methods of preparing the information to determine that the information
complies with accounting principles generally accepted in the United States of America, the method of
preparing it has not changed from the prior period, and the information is appropriate and complete in
relation to our audit of the financial statements. We compared and reconciled the supplementary information
to the underlying accounting records used to prepare the financial statements or to the financial statements
themselves.
We were not engaged to report on the statistical and introductory sections, which accompany the financial
statements but are not RS1. Such information has 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 it.
Restriction on Use
This information is intended solely for the information and use of City Council, mayor, and management of
City of Chubbuck, and is not intended to be, and should not be, used by anyone other than these specified
parties.
Very truly yours,
Deaton & Company, Chartered
Pocatello, Idaho
March 28, 2019
CITY OF CHUBBUCK, IDAHO
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
TABLE OF CONTENTS
Page
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
27
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
33-45
2
CITY OF CHUBBUCK, IDAHO
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2018
TABLE OF CONTENTS - CONTINUED
Pace
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
79
Governmental Funds
55
Statements of Position - Internal Service Funds
56
Statements of Revenues, Expenses, and Changes in Net Position - Internal Service
82-83
Funds
57
Statements of Cash Flows - Internal Service Funds
58
Budgetary Comparison Schedule - Nonmajor Governmental Funds
59
Statistical Section
60
Statistical Section - Table of Contents
61
Financial Trends
62-69
Revenue Capacity
70-73
Debt Capacity
74-75
Operating Information
76-78
Single Audit Section
79
Schedule of Expenditures of Federal Awards
80
Notes to the Schedule of Expenditures of Federal Awards
81
independent Auditor's Report on Compliance and Internal Control
82-83
independent Auditor's Report on Compliance for Each Major Program
84-85
Scheduie of Finding and Questioned Costs
86
3
t�' �v ti'.Ci tVi�Cll lii}l}11�:%i:L15
5150 Yellowstone, PO Box 5604
Chuibuck,ID 83202
(208) 237-2400 phone
(208) 238-2371 fax
lWAYOR
Kevin England
March 29.2019
COUNCIL t4�1 EMBERS
Ryan Lewis
Annette Baumeister
Melanie Evans
Roger Herr2ndez
The Honorable Mayor- Kevin Eugland, Members of the City Councl, and Citiaeus of the Cirri, of
Chaubbuck:
Idaho State Latin requires that all general-purpose local goverrirrients 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 couforiuity with generally accepted accounting principles
(GAAP) and audited in accordance with generally accepted audi`dng standards (GRAS) by a firm of
licensed certified public accountants. Pursuant to those requirements, -we hereby issue the comprehensive
annual f nancial report for the City of Chubbuck for the fiscal year ended September 30, 201 S.
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 excced anticipated benefits, the objective is to
provide reasonable, rather than absolute, assurance that the financial statements are free of any material
misstatements.
Deaton & Company, CIsartered, a finu of licensed certified public accountants has issued an Lminodilied
opinion on the City of Chubbuck-s financial statements for the year ended September 30, 201 S. The
independent auditor's report is located at the front of the fmanciai section of this report,
Management's Discussion and Analysis W &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 leiter of transmittal and should be read in conjunction with it.
Profile of the City of Chubbuck
The City of Chubbuck (population 14,869) 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 55,193. The City is located in Bannock County with a 2017 estimate census population of
85,269. The City is empowered to levy propeity 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 Alayor form of government. Policy making 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 Puff range of services. These services include Public Safety (police, fire,
animal control, and building inspection); Environmmtal Health (sanitation, watex, 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 (roayor/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
mend or transfer appropriations within individual funds but not between Rinds which requires the
approval of the City Council in a budget amendment, which follows a public notice, public hearing and
amended ordbaances adoption process similar to the adoption of the original budget. Budgets are
integrated into the accounting system to facilitate i-nana-cuient 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
nloz1t11ly-
The preparation of the comprehensive annual Fnaa-icial report was made possible 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 tl-ls project. Credit also inust be
given to the Mayor and the City Council for their support for maintaining high standards of
professionalism in the managenlent of the City of Cliubbuck's finances. y
Respectfully submitted March 28, 2019
"�'
Rich lllorgan
City Treasurer
1
IV
Daniel Christensen
City Accountant
CITY OF CHUBBUCK, IDAHO
List of Principal Officials
SEPTEMBER 34, 2018
Title Name
Elected Officials
Mayor
Kevin England
Council President
Ryan Lewis
Council Member
Annette Baumeister
Council Member
Melanie Evans
Council Member
Roger Hernandez
City Officials
City Attorney
Tom Holmes
Public Works Director
Rodney Burch
City Engineer
Bridger Morrison
Sewer/Water Superintendent
Bryan Hall
Sanitation/Streets Superintendent
Paul Hathaway
City Clerk/Treasurer
Rich Morgan
Human Resource Officer
Scott Gummersall
City Accountant
Dan Christensen
Planning and Development
Devin Hillam
Police Chief
Bill Guiberson
Computer Information Systems
Sergei Tomin
Parks & Recreation
Bill Guinn
Fire Chief
Merlin Miller
LEGAL SERVICES
CITY OF CHUBBUCK
ORGANIZATION CHART
DRECTOR 01 1 HUMAN, CITY CLERK POLICE
PUBLICI1 WORKS RESOURCE I I DEPARTMENT
FINANCEANIMAL
I li CONTROL
FIRE
DEPARTMENT
.. ........ ..... .....,' •
COMPUTER CITY PARKS AND
ENGINEERING STREET UTILITIES
SERVICES PLANNING
RECREATION
II WArER 71, F SEWER
UTILITY BILLING
X
SANITATION
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208)232-5825
Members oridaho society or Certified Public Accountants
Members ofAinerican 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, 2018, 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, 2018, 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, as disclosed in the table of contents, 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 2017 audited financial statements
and, in our report dated March 27, 2018, 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 Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March 28, 2019, 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
internal control over financial reporting and compliance,
Chubbuck, Idaho
March 28, 2019
CITY OF CHUBBUCK, IDAHO
Management's Discussion and Analysis
For the Year Ended September 30, 2018
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,
2018. 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 $58,049,155 (net
position).
• The governments net position increased by $6,620,425. Approximately 55 percent of
this increase, $3,644,635, is attributed to capital contributions from the Chubhuck
Development Authority.
• At the end of the current fiscal year, unassigned fund balances for the general fund was
$2,464,475 or 37 percent of total general fund expenditures.
• In the City's business -type activities, operating revenues increased by $454,380, and
operating expenses increased by $1,519,821. 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
$13,620,485 (Including compensated absences). The decrease was primarily due to the
reduction of accounts payable, bonds payable, and net pension liabilities.
• The Chubbuck Impact Area Waste Water Collection Authority has been blended with the
business -type activities in the proprietary funds 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. Overtime,
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.
13
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 27-28 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.
14
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 $58,049,155 as of September 30, 2018.
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 Chubbuck's Net Position statement.
ASSETS
Current and other assets
Capital assets
Total assets
DEFERRED OUTFLOWS
Pension
LIABILITIES
long term Iiabilites outstanding
Other liabilites
DEFERRED INFLOWS
Pension
NETPOSITION
Net investment in captial assets
Restricted
Unrestricted
Total net position
City of Chubbuck's Net Position
Governmental Activities Business Activities Total
2018 2017 2018 2017 2018 2017
5 3,472,548 $ 5,589,101 $ 21,778,071 $ 38,288,838 $ 25,250,619 $ 43,877,939
24,019,218 34,258,365 33,562,536 11,6S3,926 57,581,754 45,912,291
27,491,766 39,847,466 55,340,607 49,942,764 82,832,373 89,790,230
334,119 321,496 164,581 141,888 498,700 463,384
1,876,761 19,379,160 18,183,675 16,636,420 20,062,436 36,015,580
1,110,046 522,274 3,706,279 1,961,392 4,816,325 2,483,666
2,988,807 19,901,434 21,889,954 18,597,812 24,878,761 38,499„246
270,107 225,927 133,050 99,711 403,157 325,638
24,019,218 16,829,117 11,612,979 9,217,942 3S,632,197 26,047,059
- - 164,850 168,131 164,850 168,131
547,753 3,212,484 21,704,355 22,001,056 22,252,108 25.213,540
$ 24,566,971 $ 20,041,601 33,482,184 $ 31,387,129 $ 58,049,155 $ 51,428,730
An additional portion of the City of Chubbuck's net position $164,850, represent resources that are
subject to external restriction on how they may be used. The remaining balance of unrestricted net
position $22,252,108, may be used to meet the governments' ongoing obligation to citizens and
creditors.
As of September 30, 2018, the City is able to report positive balances in all three categories of net
position, 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, 81 percent of the liabilities are made up of noncurrent liabilities.
The decrease in noncurrent liabilities is due to net pension liabilities and notes payable.
15
Governmental activities. Governmental activities' key elements are broken down in the following
charts. Government activities increased net position by $4,525,370 and business -type activities
increased net position by $2,095,055.
The City of Chubbuck's direct charges to users of governmental services made up $527,231. 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 2018, include the fire department and police
department and accounts for 40 percent. The second largest portion of expenditures is the parks and
street department which accounts for 15 percent. General government accounts for 5 percent in
expenditures.
Below is summary of the City of Chubbuck's Changes in Net Position.
City of Chtibbuck`s Changes in Net Position
16
I Governmental HczWues
Business rArUWJes I
Taal
I
2018
2017
2018
2017
2013
2037
REVENUES
Program revenues:
Charges-arsenvices
5 733,647
S 654,496
5 3,920,603
S 3,724,518
S 9,674,255 $
9,409,314
❑pera:in;,an andcontrihuicns
84,653
71,329
93,730
13-1662
173,333
205,991
Gapi'a[grants and con-.ribw ions
3,6A4,635
2,354,109
2237QC0
3,372,635
2,354,109
Genera[ revenue:
Property taxes and sales tax
5,975,483
5,642,OC4
5,975:433
5,642,004
O.her :axes
1,577,393
1,52,907
1,577.898
1,524,907
Oche-
412,.407
561,761
15,252
736
427,559
362,497
Tc_aleeflue5
12,448,723
11,138,606
9;257,590
8;$6i},2z6
21,71;6313
_9,993,322
EXPENSES
General governmen
362,299
880.217
-
-
862,299
830,217
Publicsafie;y
41865,217
4,fi17,32-1
4,865,217
4,617,822
Building inspectjon and street
1,510,83.0
1,6255,721
1,510,300
1,625,721
Parks and recrea_icn
653,873
601,054
653,873
60'1,054
Health, welfare, and other
92,222
33,44!3
92,222
83,443
wa.er
-
-
`J) 1,162
1,726,4''-3
2,311,_62
1,726,443
Sewer
2,649,245
2,363,009
2,619,245
2,363,009
Sanitation
1,732, 030
1, 637,='.70
1,732,030
1,637,470
C:A+IVViC Auihori r
609,036
609,036
29,036
609,035
Tc.aiexpenses
7,934,415
8,417,'_'92
7,101,473
5,726,97_2
15,C85,885
1=,144,214
NET CHANGE IN NET POSITION
°,46='.'.,307
2,721,314
2,156,117
3,133,29-1
6,520,412=
5,354,608
NET POSITION beginning
20:102,663
17,320,286
31,326,067
23,253,835
51,123,730
45,574,121
Prior Period Adjustment
-
-
NET POSITION ending
524,556,971
S20,041,E03
533,482,1084
S31,397,_29
S58,C'9,155 5
51,425,730
16
Revenue by Source - Government Activities
Charges for services
Other 412,407 31 5753,647 6%
Operating grants and
17
84,653
Expenses and Program Revenues — Governmental Activities
6,000,000
5,000,000
4,000,000
3,004,000
2,000, 000
1,000, 000
{a\�o <z�
■ Expenses
■ Revenue
• The majority of the City of Chubbuck's governmental activities' revenue is received from
property and sales tax (48 percent). This amount would be 65 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 75 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
services. No significant transaction occurred outside of the Major funds for fiscal year 2018.
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.
18
Business -type activities. Businesses -type activities' key elements are broken down in the
following charts.
Revenue by Source - Business Type Activities
Gain from sale of assets
0.13% 1
Charges for services,
99.87%
Expenses and Program Revenue - Business Type Activities
$4,500,000
$4,000,000
$3,500,000
$3,000,000
$2,500,000
Revenue
$2,000,00o
■ Expense
$1,500,000
$1,000,000 000
$500,000 II
E
$_
Water Sewer Sanitation
• One of the major sources of the City of Chubbuck's business -type activities' revenue is received
from charges for services (99 percent). Currently, the City 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 $1,755,605. Of which $1,239,050 of this total is unassigned fund balance (71
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
$54,125 for fiscal year 2018. As a measure of liquidity, it may be useful to compare both unassigned
fund balance and total fund expenditures. Unassigned fund balance represents 11 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: $3,978,987, Sewer:
$13,299,048, and Sanitation: $4,240,413. The water fund had an increase in net position of $832,164;
the sewer fund had an increase in net position of $1,391,865; and the sanitation fund had an increase in
net position of $290,590.
General Fund Budgetary Highlights
The City made a revision to the original appropriations approved by the City Council. The Highway,
Streets, and !toads Fund was amended by an increase of $2,530,210. The general fund actual revenues
were more than budget, and expenses were more than budget. The difference accounts for a $54,125
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, capital outlays, and highway, streets, and
road expenditures. The highway, streets and roads fund actual revenues were less than budget with the
amendment, and expenses were more than budget. The difference accounts for a $2,754,189 decrease
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, 2018 amounts to $57,581,754 (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 $13,464,142. The increase in assets includes contributions from the Chubbuck Development
Authority of $3,280,216.
20
Land
Building & Improvements
Machinery & Equipment
Infrastructure
Work in Progress
CIAwwCA:
Land
Infrastructure
Office Equipment
Water flights
Total
City of Chubbuck's Capital Assets
Governmental Activities
2018 2017
$ 2,244,009 $ 266,080
4,646,825 4,598,022
4,492,833 4,537,166
9,589,192 9,589,192
9,472,152 3,950,059
Business Activities
2018
2017
$ 971,031
$ 948,382
25,346,563
7,100,999
7,457,671
7,379,017
6,935,270 1,470,802
Total
2018 2017
5 3,215,040
$ 1,214,462
29,993, 388
11,699, 021
11,950, 504
11,916,183
9,589,192
9,589,192
16,407,422
5,420,861
386,226 386,226 386,226 386,226
18,183.193 - - - 18,183,193
- - 17,125 - 17,12S
- 2,421,167 2,421,167 2,421,167 2,421,167
$ 30,445,011 $ 41,509,938 $ 43,517,928 $ 19,337,492 $ 73,962,939 $ 60,847,430
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 $20,062,436. Of this amount, $12,740,296 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.,061,488 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 $15,939,463 on September 30, 2018. Therefore $15,939,463 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 41-42 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, 1D 83202, telephone (208)237-2400.
21
ASSETS
Current assets
Cash and cash equivalent
Property taxes receivable
Intergovernmental receivables
Interest receivable
Internal balances due tolfrom
Prepaid expenses
Other accounts receivable
Noncurrent assets
Restricted assets
Bond reserves
Utility deposits
Capital assets
Accumulated depreciation
DEFERRED OUTFLOWS
Pension
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
SEPTEMBER 30, 2018
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
Interest payable
Utility deposits
Noncurrent liabilities
Bonds payable
Note payable
Accrued compensated absences
Net pension liabilities
DEFERRED INFLOWS
Pension
NET POSITION
Net investment in capital assets
Restricted for bond service
Unrestricted
Governmental
Business -type
2,976,932 601,998
Development
Activities
Activities
Total
Authority
3,321 -
72,692
27,225
99,917 -
$ 6,524,252
$ 16,459,508
$ 22,983,760
$ 1,475,094
361,462
-
361,462
25,858
345,287
-
345,287
-
12,564
4,000
16,564
-
(4,000,000)
4,000,000
-
-
78,652
-
78,652
-
150,331
780,214
930,545
-
3,472,548
21,243,722
24,716,270
1,500,952
24,878,761 601,998
-
164,850
164,850
-
-
369,499
369,499
-
30,445,011
43,517,928
73,962,939
-
(6,425,793)
(9,955,392)
(16,381,185)
-
24,019,218
34,096,885
58,116,103
-
27,491,766
55,340,607
82,832,373
1,500,952
334,119
164,581
498,700
-
879,478
2,097,454
2,976,932 601,998
153,876
82,704
236,580 -
-
3,321
3,321 -
72,692
27,225
99,917 -
-
132,355
132,355 -
-
955,601
955,601 -
4,000
38,120
42,120
-
369,499
369,499 -
1,110,046
3,706,279
4,816,325 601,998
-
1,061,488
1,661,488 -
-
16,231,066
16,231,066 -
290,768
108,903
399,671 -
1,587,993
782,218
2,370,211 -
1,878,761
18,183,675
20,062,436 -
2,988,807
21,889,954
24,878,761 601,998
270,107
24,019,218
547,753
133,050 403,157 -
11,612,979 35,632,197 -
164,850 164,850 -
21,704,355 22,252,108 898,954
$ 24,566,971 $ 33,482,184 $ 58,049,155 $ 898,954
22
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Business --type activities
5,975,483
Program Revenues
Total
2,111,162
2,896,320
93,730 - 878,888
Operating
Capital
Net
- - 1,329,889 -
Sanitation
Charges for
Grants and
Grants and
(Expense) Development
609,036
Expenses
Services
Contributions
Contributions
Revenue Authority
Functions/Programs
Total primary government
$ 15,085,889
$ 9,674,255 $
178,383 $ 3,872,635 $ (1,360,615) $
Primary Government:
4,464,308
2,156,117
6,620,425
Governmental activities:
20,102,663
31,326,067
51,428,730
2,531,537
$ 24,566,971
General government
$ 862,299
$ 323,186
$ -
$ -
$ (539,113) $
Law enforcement
3,447,266
29,940
33,629
-
(3,383,697)
Fire control
1,417,951
237,675
-
-
(1,180,276) -
Building inspection
217,171
-
(217,171)
Street
1,293,629
13,165
3,644,635
2,364,171
Parks and recreation
653,878
149,681
10,000
-
(494,197)
Health and welfare
90,621
-
(90,621)
Other special funds
1,600
-
41,024
39,424
7,984,416
753,647
84,653
3,644,635
(3,501,480)
Business --type activities
5,975,483
2,775,622
Water
2,111,162
2,896,320
93,730 - 878,888
Sewer
2,649,245
3,979,134
- - 1,329,889 -
Sanitation
1,732,030
1,978,239
- - 246,209
CIAWVVC Authority
609,036
66,915
- 228,000 (314,121)
199,888
7,101,473
8,920,608
93,730 228,000 2,140,865
Total primary government
$ 15,085,889
$ 9,674,255 $
178,383 $ 3,872,635 $ (1,360,615) $
Component Unit:
Chubbuck Development Authority $ 4,568,320
$ 4,568,320
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, restated
ENDING NET POSITION
General Business -type
Activities Activities
$ (4,568,320)
$ (4,568,320)
Development
Total Authority
$ (3,501,480) $ 2,140,865 $ (1,360,615) $ (4,568,320)
5,975,483
5,975,483
2,775,622
203,950
203,950
-
1,373,948
-
1,373,948
-
157,760
4,000
161,760
21,900
54,759
11,252
66,011
199,888
199,888
138,215
7,955,788
15,252
7,981,040
2,935,737
4,464,308
2,156,117
6,620,425
(1,632,583)
20,102,663
31,326,067
51,428,730
2,531,537
$ 24,566,971
$ 33,482,184
$ 58,049,155
$ 898,954
23
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
BALANCE SHEET
GOVERNMENTALFUNDS
SEPTEMBER 30, 2018
FUND BALANCES
Committed
Unassigned
- 516,555 516,555
2,464,475 (1,225,425) 1,239,050
2,464,475 (1,225,425) 516,555 1,755,605
$ 2,855,524 $ 3,661,915 $ 516,555
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 $6,425,793.
24,019,218
Highway,
expenditures and therefore are not reported in the funds:
Property tax
Streets,
Other
future periods and, therefore, are not reported in the fund:
General
and Roads
Governmental
Deferred inflows of resources related to pensions (from pension schedule)
(270,107)
Fund
Fund
Funds
Total
ASSETS
activities are included in governmental activities in the statement of net position.
438,554
Long-term liabilities are not due and payable in the current period and therefore are not
Cash
$ 2,118,192
$ 3,450,951
$ 516,555
$ 6,085,698
Accounts receivable
150,331
-
-
150,331
Property and sales taxes receivable
327,315
34,147
361,462
Intergovernmental receivables
168,470
176,817
345,287
Interest receivable
12,564
-
-
12,564
Prepaid expense
78,652
78,652
Grant receivable
-
-
-
-
$ 2,855,524
$ 3,661,915
$ 515,555
$ 7,033,994
LIABILITIES
Accounts payable
$ 55,110
$ 823,820
$ -
$ 878,930
Accrued payroll
135,462
18,414
-
153,876
Accrued compensated absences
61,987
10,705
-
72,692
Interest Payable
-
4,000
-
4,000
Due to other funds
-
4,000,000
-
4,000,000
252,559
4,856,939
-
5,109,498
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - taxes
138,041
30,3D2
-
168,343
Unavailable revenues - prepaid
449
99
-
548
138,490
30,401
-
168,891
FUND BALANCES
Committed
Unassigned
- 516,555 516,555
2,464,475 (1,225,425) 1,239,050
2,464,475 (1,225,425) 516,555 1,755,605
$ 2,855,524 $ 3,661,915 $ 516,555
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 $6,425,793.
24,019,218
Unavailable revenue represents amounts that were not available to fund current
expenditures and therefore are not reported in the funds:
Property tax
168,343
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
334,119
Deferred inflows of resources related to pensions (from pension schedule)
(270,107)
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 the statement of net position.
438,554
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds:
Accrued compensated absences
(290,768)
Net pension liability
(1,587,993)
Net position of governmental funds
$ 24,566,971
24
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2015
REVENUES
Property taxes and sales tax
Franchise fees
Intergovernmental income
Court revenue
Parks revenue
Licenses, permits and fines
Grants
Fire protection and prevention
Leases and rents
Interest income
Donations
Charges for services
Other revenues
EXPENDITURES
General government
Law enforcement
Fire control
Building inspection
Street
Parks and recreation
Health and welfare
Court fund
Parks guarantee fund
Capital outlays
CIAWWC Authority
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Principal payments
Interest expense
Proceeds from sale of assets
NET CHANGE IN FUND BALANCES
BEGINNING FUND BALANCE
ENDING FUND BALANCE
$ 2,464,475 $ (1,225,425) $ 516,555 $ 1,755,605
25
See accompanying notes to financial statements
(Continued)
Highway,
Streets,
Other
General
and Roads
Governmental
Fund
Fund
Funds
Total
$ 4,968,677
$ 962,076
$ -
$ 5,930,753
203,950
-
-
203,950
513,940
860,008
-
1,373,948
29,940
-
-
29,940
7,729
-
-
7,729
231,180
-
-
231,180
43,629
-
-
43,629
237,675
-
-
237,675
92,006
-
-
92,006
157,760
-
-
157,760
2,936
-
38,088
41,024
141,952
13,165
-
155,117
50,647
8,775
27,027
86,449
6,682,021
1,844,024
65,115
8,591,160
580,806
-
-
580,806
3,287,172
-
-
3,287,172
1,300,583
-
-
1,300,583
212,747
-
-
212,747
-
1,136,919
-
1,136,919
552,176
-
-
552,176
90,621
-
-
90,621
-
-
1,600
1,600
647,189
3,513,289
-
4,160,478
6,671,294
4,650,208
1,600
11,323,102
10,727
(2,806,184)
63,515
(2,731,942)
-
(4,000)
-
(4,000)
43,398
55,995
-
99,393
43,398
51,995
-
95,393
54,125
(2,754,189)
63,515
(2,636,549)
2,410,350
1,528,764
453,040
4,392,154
$ 2,464,475 $ (1,225,425) $ 516,555 $ 1,755,605
25
See accompanying notes to financial statements
(Continued)
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
2018
Total
Reconciliation of the change in fund balances - total governmental funds
to the change in net position of governmental activities:
Net change in fund balances - total governmental funds $ (2,636,549)
Amounts reported for governmental activities in the Statement of Activities are different because:
Governmental funds report capital outlays as expenditures while governmental activities report
depreciation expense to allocate those expenditures over the life of the assets. Capital asset
contributions from other entities are not recognized as a revenue for governmental purposes,
but are required to be recognized on the Statement of Activities:
Contributed capital assets 3,644,635
Capital asset purchases capitalized 4,160,478
Depreciation expense (642,423)
The net affect of sales transactions involving capital assets (44,634)
Unavailable revenues are not recorded as current period receipts 44,730
Internal service funds are used to charge the costs of certain activities, such as employee health
insurance and equipment maintenance to individual funds. The revenues and expenses
applicable to governmental operations are included in the statement of activities (112,506)
Some expenses reported in the Statement of Activities do not require the use of current
financial resources and therefore are not reported as expenditures in governmental fund:
Accrued compensated absences (22,621)
Governmental funds report district pension contributions as expenditures. However, in the
Statement of Activities, the cost of pension benefits earned net of employee contributions is
reported as pension expense
Pension expense in excess of contributions 73,198
Change in net position $ 4,464,308
26
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2017
27
Internal Internal
Service Service
Water
Sewer
Sanitation
CIAWVVCA
Total
2017
Funds 2018 Funds 2017
ASSETS
Current assets
Cash and cash equivalents
$ 5,822,053
$ 6,062,935
$4,385,533
$ 1,035
$16,271,556
$ 19,331,521
$ 626,505 $ 858,228
Accounts receivable
330,745
297,883
151,586
780,214
777,263
-
6,152,798
6,360,818
4,537,119
1,035
17,051,770
20,108,784
626,505 858,228
Noncurrent assets
Restricted assets
Bond reserves
164,850
-
164,850
168,131
Utility deposits
366,899
2,250
350
369,499
336,187
_
Advance to joint venture
-
16,549,504
17,127,318
5,010,876
-
3,119,026
18,569,419
17,127,318
43,248,625
17,418,268
19,068,389
269,103 269,103
Capital assets
Accumulated depreciation
(2,893,431)
(3,321,562)
(1,664,830)
(1,818,319)
(9,698,142)
{7,428,887)
(257,250) (254,679)
Interest receivable
4,000
4,000
Due from other funds
-
14,187,82222,822,882
4,000,OOa
-
1,454,546
16,751,100
4,000,000
55,216,350
29,562,088
-
11,853 14,424
20,340,620
29,183,700
5,991,655
16,752,135
72,268,120
49,670,872
638,35B 872,652
DEFERRED OUTFLOWS
60,307
55,183
49,091
-
164,581
141,888
- -
Pension
LIABILITIES
Current Liabilities
Accounts payable
1,764,834
272,889
36,651
2,094,374
403,217
3,OB0 80,486
Payroll payable
31,463
27,824
23,417
82,704
74,120
Accrued compensated absences
15,559
9,566
2,100
27,225
24,332
Current portion of bonds payable
132,355
-
-
132,355
132,355
8,251
Accrued band interest
Current portion of long-term debt
3,321
19,523
-
852,545
-
83,533
3,321
955,601
952,144
Accrued note interest
35,895
-
2,250
2,225
350
38,120
369,499
336,187
- -
Deposits
366,899
2,389,849
1,165,074
148,276
3,703,199
1,930,606
3,08a 80,486
Noncurrent Liabilities
Revenue bonds payable,
1,061,488
1,061,488
1,193,843
net unamortizedpremium
17,127,318
17,127,318
Advance payable
Note payable
-
2,726,667
12,740,296
764,103
-
16,231,066
14,603,027
Compensated absences
62,236
38,266
8,401
108,903
97,323
Net pension liabilities
286,627
4,137,018
252,274
13,040,836
233,317
1,005,821
17,127,318
782,218
35,310,993
742,227
16,636,420
_ f
6,526,867
14,205,910
1,154,097
17,127,318
39,014,192
18,567,026
3,080 80,486
DEFERRED INFLOWS
48,753
44,611
39,686
-
133,050
99,711
- -
Pension
NET POSITION
Net investment in capital assets
9,681,470
1,689,314
606,560
(376,218)
11,601,126
9,203,518
11,653 14,424
Restricted for bond service
164,850
3,978,987
-
13,299,048
-
4,240,413
-
1,035
154,850
21,519,483
168,131
21,774,374
623,425 777,742
Unrestricted
$ 13,825,307
$14,988,362
$4,846,973
$ (375,183
33,285,459
$ 31,146,023
$ 635,278 $ 792,166
Adjustment to reflect the consolidation of internal
service fund
activities related
to enterprise
activities,
196,725
$ 33,482,184
27
28
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS
OF REVENUES,
EXPENSES, AND CHANGES IN
NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR
ENDED SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2017
Internal
Internal
Service
Service
Water
Sewer
Sanitation
CIAWWCA
Total
2017
Funds 2018
Funds 2017
OPERATING REVENUES
Service revenue
$ 1,702,477
$ 3,979,134
$ 1,848,689
$ 66,915
$ 7,597,215
$ 7,010,480
$ 242,989
$1,085,940
Revenue used as security
-
for revenue bond:
Charges for services
1,193,843
-
1,193,643
1,326,198
2,896,320
3,979,134
1,848,689
&6,915
8,791,058
8,336,678
242,989
1,085,940
OPERATING EXPENSES
Salaries and wages
710,831
622,368
570,407
1,903,606
1,555,645
-
-
Personnel benefits
236,8813
216,079
248,473
701,440
624,443
6,237
349,428
Repairs and maintenance
551,157
116,522
387,708
1,055,387
828,517
8,891
15,819
Supplies and tools
52,039
7,095
61,330
120,464
126,065
9,136
17,574
Travel, meetings, and training
10,054
5,798
4,659
20,511
11,203
3,005
1,499
Fuels and lubricants
13,732
3,697
49,041
66,470
66,440
33,974
30,151
Telephone and communications
6,707
5,487
6,188
18,382
11,962
-
Utilities
175,923
31,891
3,626
211,440
206,401
13,283
14,532
Treatment -Pocatello
-
1,496,762
-
1,496,762
1,297,146
-
-
Other purchased services
21,688
-
32,125
2,930
56,743
30,728
-
-
Professional services
46,016
36,131
18,968
101,115
123,705
322,778
372,423
Bad debt
7,444
1,650
851
9,945
8,774
-
-
Depreciation
237,294
105,765
144,153
606,106
1,093,318
444,733
2,572
4,037
2,069,773
2,649,245
1,527,529
609,036
6,855,583
5,335,762
399,876
805,463
OPERATING INCOME
826,547
1,329,889
321,160
(542,121)
1,935,475
3,090,916
(156,887)
280,477
NONOPERATING REVENUE (EXPENSE)
Note interest income
(34,175)
4,000
-
(30,570)
4,000
(64,745)
(80,458)
Bond interest expense
(7,214)
(6,097)
Note interest expense
(7,214)
228,000
228,000
-
Grant revenue
(220)
Miscellaneous expense
Gain (Loss) from asset disposal
141
11,111
11,252
735
(41,248)
15,111
(30,570)
228,000
171,293
(86,040)
CAPITAL CONTRIBUTIONS
46,865
46,865
93,730
134,662
Developer contributions
46,865
46,865
93,730
134,662
CHANGES IN NET POSITION
832,164
1,391,865
290,590
(314,121)
2,200,498
3,049,538
(156,887)
280,477
BEGINNING NET POSITION, restated
12,993,143
13,596,497
4,556,383
(61,062)
31,084,961
28,096,485
792,165
511,688
PRIOR PERIOD ADJUSTMENT
ENDING NET POSITION
$ 13,825,307
$14,9B8,362
S 4,846,973
$$3�.
$33,285,459
$ 31,146,023
$ 635,27B
$ 792,165
Adjustment to reflect the consolidation of internal
service fund activities related to enterprise funds
(44,381)
Change in net position
of business -type
activities
$ 2,155,117
28
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from revenues
Cash paid to suppliers
Cash paid to empioyees
Net cash provided by operating activities
CASH FLOW FROM NONCAPITAL FINANCING ACTIVITIES
Net change in inierfund loans
Proceeds from grants
Change in reporting restricted cash
Net cash (used) in nancapitai financing activities
CASH FLOW FROM CAPITAL. AND RELATED
FINANCING ACTIVITIES
Principal paid on capital debt
Interest paid on capital debt
Proceeds from asset disposals
Gain from asset disposals
Contributed capital
Purchase of capital assets
Other uses
Net cash provided (used) in capital and related
financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
BEGINNING CASH AND CASH EQUIVALENTS
ENDING CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS ARE REPORTED AS:
Cash and cash equivalents
Cash and cash equivalents - Restricted
29
See accompanying notes to financial statements
Internal
Internal
Service Funds
Service
Water
Sewer
Sanitation
CIAWWCA
Total
2017
2018
Funds 2017
$2,874,683
$3,988,313
$1,848,251
$ 66,915
$ 8,778,162
$
8,251,625
$ 242,989
$1,085,940
748,121
(1,638,783)
(562,525)
(2,930)
(1,456,117)
(2,605,661)
(468,474)
(459,423)
(921,738)
(840,873)
(768,741)
(2,531,352)
(2,124,700)
(6,238)
(349,427)
2,701,066
1,508,657
516,985
63,985
4,790,693
3,524,264
(231,723)
277;090
-
(3,709,050)
-
(290,950)
(4,000,000)
-
-
-
-
-
228,000
228,000
247,030
-
-
32,662
550
100
-
33,312
27,913
_
-
32,662
(3,708,500)
100
(62,950)
(3,738,688)
274,943
2,432,021
(852,544)
(80,336)
1,499,141
(1,069,344)
-
-
(7,245)
-
(31,524)
-
(38,769)
(86,603)
-
141
11,111
-
-
11,252
735
-
46,865
46,865
-
-
93,730
134,662
(5,397,097)
(250,196)
-
-
(5,647,293)
(1,507,342)
-
(9,460)
-
(220)
-
-
(2,925,315)
(1,044,764)
(111,860)
(4,081,939)
(2,528,112)
(9,460)
(191,587)
(3,244,607)
405,225
1,035
(3,029,934)
1,271,095
(231,723)
267,630
6,545,389
9,309,792
3,980,658
-
19,835,839
18,564,744
858,228
590,598
$6,353,802
$6,065,185
$4,385,883
$ 1,035
$ 16,804,870
$
19,835,839
$ 626,505
$ 858,228
$5,822,053
$6,062,935
$4,385,533
$ 1,035
$ 16,270,521
$
19,331,521
$ 626,505
$ 858,228
531,749
2,250
350
-
534,349
504,318
-
-
$6,353,802
$6,065,185
$4,385,883
$ 1,035
$ 16,804,870
$
19,835,839
$ 626,505
$ 858,228
29
See accompanying notes to financial statements
OPERATING INCOME
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation
Pension expense
Bad debt expense
(Increase) decrease in assets
Accounts receivable
Increase (decrease) in liabilities
Accounts payable
Payroll payable
Accrued compensated absences
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2017
RECONCILIATIONS OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
30
See accompanying notes to financial statements
Internal
Internal
Service Funds
Service
Water
Sewer
Sanitation
CIAWWCA
Total
2017
2018
Funds 2017
$ 826,547
$1,329,889
$ 321,160
$(542,121)
$ 2,477,596
$ 3,000,922
$ (156,888)
$ 280,477
237,294
105,765
144,153
606,106
487,212
444,733
2,571
4,037
1,656
5,076
43,906
-
50,638
49,591
-
-
7,444
1,650
851
9,945
8,769
-
(21,637)
9,179
(436)
(12,896)
(65,053)
-
1,625,437
64,600
1,120
-
1,691,157
96,502
(77,406)
(7,424)
4,399
2,534
1,651
-
8,584
23,212
-
19,926
{10,0366
4,582
-
14,472
(14,412)
-
1,874,519
178,768
195,825
606,106
2,249,112
523,342
(74,835)
(3,387)
$2,701,066
$1,508,657
$ 516,985
$ 63,985
$ 4,726,708
$ 3,524,264
$ {231,723)
$ 277,090
30
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2017
Recreation
31
See accompanying notes to financial statements
Programs
Health Plan
Trust Fund
Trust Fund
2018
2018
Total
2017
ASSETS
Cash
$ 40,841
$ 381,679
$422,520
$72,199
On deposit with third party administrator
-
50,000
50,000
-
Prepaid expenses
-
7,918
7,918
-
Contributions receivable
-
90
90
-
40,841
439,687
480,528
72,199
LIABILITIES
Accounts payable
-
17,034
17,034
1.628
Health claims incurred but not reported
-
72,201
72,201
-
Unearned contributions
-
74,279
74,279
-
-
163,514
163,514
1,628
NET POSITION
Heid in trust
$ 40,841
$ 2761173
$ 317,014
$ 701571
31
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
FIDUCIARY FUNIS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2017
Recreation
32
See accompanying notes to financial statements
Programs
Health Plan
Trust Fund
Trust Fund
2018
2018
Total
2017
ADDITIONS
Contributions
$ -
$ 1,063,768
$ 1,063,768
$ -
COBRA contributions
-
901
901
Registration fees
60,390
-
60,390
64,685
Sponsorships
10,024
-
10,024
10,450
Total additions
70,414
1,064,669
1,135,083
75,135
DEDUCTIONS
Stop -loss coverage
-
275,614
275,614
-
Taxes
-
986
986
-
Broker tees
-
20,716
20,716
-
Professional service fees
-
16,895
16,895
-
Continuation fees
-
1,000
1,000
-
Bonded insurance expense
-
295
295
-
immunization
-
5,645
5,645
-
Claims administration/TPA fees
-
58,471
58,471
-
Claims incurred
-
407,546
407,546
-
Director's compensation
5,500
-
5,500
5,500
Boy's baseball
45,816
-
45,816
38,418
Girl's softball
33,260
-
33,260
21,868
Tee/tiger ball
12,220
-
12,220
13,893
Other expenses
3,348
1,328
4,676
2,432
Total deductions
100,144
788,496
888,640
82,111
Change in net position
(29,730)
276,173
246,443
(6,976)
Net position - beginning of the year
70,571
-
70,571
77,547
Net position - end of the year
$ 40,841
$ 276,173
$ 317,014
$ 70,571
32
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 14)
NOTE 1 - Surnmary of Significant AccountinPolicies
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 Fntity". Currently, the City reports two component units; 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- Enterprise Fund
Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA)
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
$17,127,318. 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 governmentai and business -
type 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 Accountin Policies 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 expenditurelexpenses. 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 expenditureslexpenses 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 expenditureslexpenses of the individual governmentai 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.
Proprietary funds distinguish "operating" revenues from "non-operating" revenues. Operating revenue is revenue generated from
the City's primary business activities. The operating revenues are produced through charges for services. Nonoperating revenue is
the portion of the City's revenue that is derived from activities not related to its core operations.
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 fund the Health P}an Trust to pay
medical claims incurred by employees of each fund.
34
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 14)
NOTE 1 - Summary of SicinificantAccountin Policies Continued
B. Basis of Presentation (continued)
Fiduciacy Funds
Fiduciary funds account for resources held for the purpose of parties outside the government. The City of Chubbuck accounts for
two fiduciary funds.
Recreation Program Trust Fund
The Recreation Program Trust Fund is used to account for assets held by the City for the use of the baseball and softball program.
The recreation program maintains the spending control of the fund.
Health Plan Trust Fund
The Health Plan Trust Fund provides optional health care benefits to City employees, dependents, and employees eligible through
Cobra. All medical and prescription drug coverages are paid by the City through contributions to the Trust. A third party
administers the benefits and receives a fee for processing claims.
C. Measurement Focus and Basis of Accounting
Measurement focus is a term used to describe "which" transactions are recorded within 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 Net 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.
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 and 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 an 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 efminated from the government -wide financial statements.
35
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 14)
NOTE 1 - Summary of Sinnificant Accounting Policies (Continue
D. Budgets and Encumbrances
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are
adopted 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.
F, Cash and Cash Equivalents
For the purpose of the Statement of Net Position, "cash and cash equivalents" includes ail demand, savings accounts, certificates of
deposits, and state investing pools of the City. 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. Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges, right of way and similar
items), are assets with an initial, individual cost of more than $11,000 and an estimated useful life in excess of one year.
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.
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
20-30 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.
36
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 14)
!VOTE 1 - Summary of Significant Accounting Policies Continued
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.
Ali 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.
I. 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 Absences
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 report only the compensated
absence liability payable from expendable available financial resources, while the proprietary funds report the liability as it is
incurred.
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 lifted Only by the Council taking
the same formal action that imposed the constraint originally.
37
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 14)
NOTE 1 - Summary of Significant Accounting Policies (Continued)
K. Equity Classifications (continued)
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 those 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 toldeductions from Base Plan's fiduciary net position
have been determined on the same basis as they are reported by the Base Pian. For this purpose, benefit payments (including
refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are
reported at fair value.
NOTE 2 - Legal Compliance - Budgets
Approximately six to seven months before the start of a new fiscal year, the City's financial officer submits to the City 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 from 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 exercised 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
Balance
$ 164,850
369,499
$ 534,349
Bond reserves are amounts the City is legally required to reserve for the repayment of outstanding bonds.
Water deposits are collected from individuals who receive utility services from the City. Money on deposit may be used to pay past
due balances or is returned when the payer stops utility service. Restricted utility deposits totaled $369,499 at year-end.
NOTE 4 - Property Tax
Bannock County has the responsibility of 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.
Property 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, $361,462 in outstanding property taxes were expected to be collected
and remitted by the County.
38
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 14)
NOTE 5 - Tax Abatements
The City has no tax abatement agreement as of September 30, 2018.
NOTE 6 - Cash and Cash Equivalents and Investments
Primary Government:
Deposits at year end consist of the following:
Deposits
Cash in bank - carrying amount
Restricted
Unrestricted
Fiduciary Fund:
Cash
Balance
$ 534,349
22,983,760
$ 23,518,109
Balance
$ 422,520
$ 422,520
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 $23,940,629 and the
bank balance was $20,085,900. 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 $3,419,714.
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 pooi 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
$ 1,475,094
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
$1,475,094. 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 State 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 reported
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 (CIAWWCA):
Deposits and Investments - The CIAUVWCA has no deposits or investments.
Deposits at year end consist of the following:
Deposits
Cash in bank -carrying amount
Unrestricted
$ 1,035
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
$1,035. 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.
39
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 14)
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 tax
receivables.
Receivables as of year-end for the City's business -type funds are as follows:
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 City 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 ponalty.
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.
Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Exclusive of the
State 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.
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 - Chan es in Capital Assets
A summary of general capital assets at year end is as follows
Beginning
CIAWWC
Water
Sewer
Sanitation Authority
Total
Accounts Receivables $ 361,863 $
318,417
$ 160,214 $
$ 640,494
Allowance for Doubtful Accounts (31,118)
(20,534)
(8,628)
(60,280)
$ 330,745 $
297,883
$ 151,586 $
$ 78D,214
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 City 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 ponalty.
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.
Concentration of Credit Risk is the risk of loss attributed to the magnitude of an investment in a single issuer. Exclusive of the
State 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.
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 - Chan es in Capital Assets
A summary of general capital assets at year end is as follows
40
Beginning
Ending
Balance
Additions
Deletions
Balance
Nondepreciable assets
Land
$ 266,080
$
1,977,929
$
-
$ 2,244,009
Work in process
3,950,059
5,542,013
19,920
9,472,152
Infrastructures
9,589,192
-
-
9,589,192
Buildings and Improvements
4,598,022
48,803
-
4,646,825
Vehicles and Equipment
4,537,166
248,105
292,438
4,492,833
22,940,519
7,816,850
312,358
30,445,011
Accumulated Depreciation
6,039,360
642,423
255,990
6,425,793
$ 16,901,159
$
7,174,427
$
56,368
$ 24,019,218
A summary of proprietary type capital assets at
year end is as follows:
Beginning
Ending
Balance
Additions
Deletions
Balance
Nondepreciable assets
Land
$ 1,334,608
$
22,649
$
$ 1,357,257
Water Rights
2,421,167
-
2,421,167
Work in process
1,470,802
5,464,468
6,935,270
Buildings and Improvements
25,301,317
45,246
25,346,563
Vehicles and Equipment
7,379,017
114,929
36,275
7,457,671
37,906,911
5,547,292
36,275
43,517,928
Accumulated Depreciation
8,895,778
1,095,689
36,275
9,955,392
$ 29,011,133
$
4,551,403
$
-
$ 33,562,536
40
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGL 9 OF 14)
NOTE 10 - Long-term Debt and Accrued Compensation
Accrued Compensated Absences:
Current portion
Noncurrent portion
Long-term Debt:
Governmental Business -type
$ 72,692 $ 27,225
290,768 108,903
$ 363,460 $ 136,128
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 debt.
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
an interest rate of 3,25% and semi-annual payments of $12,332 for 20 years,
Current portion
Noncurrent portion
$ 19,523
2,726,667
$ 2,746,190
At year-end the City was authorized, an a line -of -credit, to borrowed $17,569,518 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. At 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 field 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.
Principal
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. $ 137,585
DEQ line of credit a1 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. 6,961,507
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. 5,382,713
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. 111,036
$ 13,592,841
Less current portion 852,545
Noncurrent portion $ 12,740,296
In 2016, the City received a loan award from the Department of Environmental Quality (DEQ) for an amount not to exceed
$8,500,000 at 2.75% interest. Payments will begin after the closing of the loan with biannual installments to cover principal and
interest over 20 years. The loan is being used to finance the designing and constructing of a well in Copperfield Landing. The loan
was not closed at the end of fiscal year 2018,
Available Principal
$ 5,916,851 $ 2,583,149
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 portion
Noncurrent portion
41
Net Premium Principal Total
$ 58,843 $ 1,135,000 $ 1,193,843
58,843 1,135,000 1,193, 843
7,355 125,000 132,355
$ 51488 $ t,010 000 $ 1,061,488
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE= 10 OF 14}
NOTE 10 - Lona -term Debt and Accrued Compensation (Continued)
Bond premiums, net amortization totaled $58,843. The bond premium and expenses are amortized 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 City. 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 it's entirety on May 5, 2013. Note 2 was prematurely paid off on June 25,
2015,
Notes Payable: Balance
Note 1 $ -
Note 2 -
Note 3 847,636
847,636
Less current portion 83,533
Noncurrent portion $ 764,103
Interfund Transfers and Due To/Due From
On October 1, 2017, the Sewer Enterprise Fund loaned the Highway, Streets and Roads Fund, for the purpose of the Siphon Road
Interchange, the principal sum of $4,000,000 with an interest rate of .10% and an annual payment of $135,409.98 for 30 years. The
first payment being made on October 1, 2018 and then on the first day of October for each year thereafter until October 1, 2047,
Fund
Beginning
Due from
Due to
Highway, Streets, and Roads
5
4,000,000
$
-
Sewer Enterprise Fund
Reductions
-
one year
4,000,000
$
4,000,000
$
4,000,000
Annual Debt Service Requirements for leases, bonds and notes payable
Compensated absences
$ 335,184
$
431,301
Year Ending Governmental Activities
$ 363,460
Business -type_
Activities
September 30 Principal Interest
$
Primal)
$ 403,025
Interest
2019 $ $
$
3,845,603
$
72,965
2020 -
$ 290,768
1,144,302
Beginning
65,593
2021
1,153,490
Due within
57,943
2022 -
1,162,818
Reductions
50,013
2023 -
Business -type activities
276,660
41,796
20242028 -
5,427,733
Bonds payable
70,587
2029-2033 -
-
4,438,023
$ 1,135,000
-
2034-2035 -
45,555,171
673,038
2,583,149
951,653
$ $ -
$
18,321,667
$
358,897
Changes in long-term liabilities
Long-term liability activity for the year was as follows
42
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Governmental activities
Compensated absences
$ 335,184
$
431,301
$ 403,025
$ 363,460
$ 72,692
$ 335,184
$
431,301
$ 403,025
$ 363,460
$ 72,692
Long-term portion
$ 290,768
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Business -type activities
Bonds payable
$ 1,260,000
$
-
$ 125,000
$ 1,135,000
$ 125,000
Nates payable
45,555,171
2,583,149
951,653
17,186,667
955,601
Compensated absences
121,655
124,779
110,306
136,128
27,225
$ 16,936,826
$
2,707,928
$ 1,186,959
$ 18,457,795
$ 1,107,826
Long-term portion
S17,349,969
42
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 14)
NOTE 11- Stewardship. Compliance and Accountabiiit
A. Deficit Fund Balance
At September 30, 2018, the City had a deficit fund balance in the Highway, Streets, and Roads fund.
The City did not anticipate the increased expenditures in capital outlays within the fund. This expenditure was covered using an
advanced note receivable from the Sewer Fund as described in Note 10. Future revenues within the fund are expected to pay off the
advancement.
NOTE 12- Pension Plan
Plan Description:
The City contributes to the Base Plan which is a cast -sharing multiple -employer defined benefit pension plan administered 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.persi.idaho.gov.
Responsibility for administration of the Base Plan is assigned to the Board comprised of rive members appointed by the Governor
and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least
ten 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, death 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 five
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 policelfirefighters) of the average monthly salary for the highest consecutive 42 months.
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 Price 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 state 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 rates 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, 201B 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 $585,244 for the year ended September 30, 2018.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions:
At September 30,20 18, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2018, and the total pension liability used to calculate the net pension liability 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, 2018, the
City's proportion was .1606305 percent.
For the year ended September 30, 2018, the City recognized pension expense (revenue) of $475,346. At September 30, 2018, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
43
CITY OF CHUBBLICK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 14)
NOTE 12- Pension Plan Continued
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $ 260,182 179,008
Changes in assumptions or other inputs 154,229 -
Net difference between projected and actual earnings on pension plan investments - 263,344
Changes in the employer's proportion and differences between the employer's contributions and
the employer's proportionate contributions (63,985) (39,195)
City contributions subsequent to the measurement date 148,274 -
$ 498,700 $ 403,157
$148,274 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, 2018.
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, 2017 the beginning of the measurement period ended June 30, 2018 is 4.9 and 5,5
for the measurement period June 30, 2018 years.
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, 20168:
2019
$ 192,668
2020
22,702
2021
(194,222)
2022
(73,880)
2023
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, 2017 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%
Mortality 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 period from
July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2018 is based on the results of an actuarial valuation
date of July 1, 2018.
44
CITY OF CHUBBUCK, IDAHO
NOTES To FINANCIAL STATEMENTS (PAGE 13 OF 14)
NOTE 12 - Pension Plan continued
The long-term expected rate 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 'snfiation) 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 rates 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 allocation. 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.
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,
Asset Class
Core Fixed Income.
Broad U5 Equities
Developed Foreign Equities
Assumed Inflation - Mean
Assumed Inflation - Standard Deviation
Portfolio Arithmetic Mean Return
Portfolio Standard Deviation
Portfolio Long -Term (Geometric) Expected Real Rate of Return.
Net of Investment Expenses
Assumed Investment Expenses
Portfolio Long -Term (Geometric) Expected Real Rate of Return.
Net of Investment Expenses
Portfolio Long -Term Expected Real Rate of Return, Net of Investment Expenses
Portfolio Standard Deviation
4.19%
14.16%
Valuation Assumptions Chosen by PERSI Board
Long -Term Expected Real Rate of Return, Net of Investment Expenses 4,05 %
Assumed Inflation 3 00°�
Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 7.05%
Discount Rate:
The discount rate used to measure the total pension liability was 7.05%. 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.
Sensitivity of the Employer's proportionate share of the net pension liability to changes in the discount rate:
The following presents the Employer's proportionate 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 tower (6.10 percent) or 1 -percentage -point higher (8.10 percent) than the current rate:
Current
1% Decrease Discount Rate 1 % Increase
(6.05°10) (7.05%) (8.05%)
Employer's proportionate share of the net pension liability (asset) $ 5,933,179 $ 2,370,211 $ (580,069)
45
Long -Term
Long -Term
Expected
Expected
Target
Nominal Rate
Real Rate of
Allocation
of Return
Return
30,00%
3.05°/
0.80%
55.00%
8.30%
6.05%
15.00%
8.45%
6.20%
2.25%
2.25%
1.50%
1.50%
6.75%
4.50%
12.54%
12.54%
6.13%
3.77%
0.40%
4.00%
5.73%
3.37%
4.19%
14.16%
Valuation Assumptions Chosen by PERSI Board
Long -Term Expected Real Rate of Return, Net of Investment Expenses 4,05 %
Assumed Inflation 3 00°�
Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 7.05%
Discount Rate:
The discount rate used to measure the total pension liability was 7.05%. 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.
Sensitivity of the Employer's proportionate share of the net pension liability to changes in the discount rate:
The following presents the Employer's proportionate 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 tower (6.10 percent) or 1 -percentage -point higher (8.10 percent) than the current rate:
Current
1% Decrease Discount Rate 1 % Increase
(6.05°10) (7.05%) (8.05%)
Employer's proportionate share of the net pension liability (asset) $ 5,933,179 $ 2,370,211 $ (580,069)
45
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL. STATEMENTS (PAGE 14 OF 14)
NOTE 12 - Pension Plan (continued)
Pension plan fiduciary net position:
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, 2018, the City reported payables to the defined benefit pension plan of $o for legally required employer
contributions and $0 for legally required employee contributions which had been withheld from employee wages but not yet remitted
to PERSI.
NOTE 13 - Risk Management
The City is exposed to various risks of loss. The City has obtained commercial insurance to reduce the risk of substantial losses.
The City has established a Health Insurance Fund for contributions to the Health Plan Trust for medical claims coverage. The
Health Insurance Fund is include in the Internal Service Funds.
The City has established a Health Plan Trust for insuring benefits provided to City employees and covered dependents. Health
benefits were self-insured up to a specific stop loss amount of $50,000, and an aggregate stop loss of $1,000,000 for 2018.
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 by way of the Health Insurance Fund to
the Health Plan Trust based on actuarial estimates of the amounts needed to pay prior and current year claims. The claims liability
of $72,201 reported as accounts payable and accruals in the Health Plan Trust 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 14 - Subsequent Events
Subsequent events were evaluated up to March 28, 2049, the date the financia) statements were available to be issued.
NOTE 15 - Other Postern to ment Benefits
The City complies with Idaho's requirements under the Consolidated Omnibus Budget Reconciliation Act (COBRA). The liability
under state requirements related to other post -employment benefits for the medical insurance COBRA program is not required to be
reported. The City does not participate in any other post -employment benefit (OPER).
46
REQUIRED SUPPLEMENTARY INFORMATION
47
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERALFUND
YEAR ENDED SEPTEMBER 30, 2018
Resources
General property taxes and sales tax
Franchise fees
State sales and liquor 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)
$ 4,886,705
$ 4,886,705
$ 4,968,677
$ 81,972
201,327
201,327
203,950
2,623
506,355
506,355
543,880
37,525
12,193
12,193
7,729
(4,464)
236,232
236,232
231,180
(5,052)
31,180
31,180
43,629
12,449
214,172
214,172
237,675
23,503
94,000
94,000
92,006
(1,994)
327,008
327,008
157,760
(169,248)
7,720
7,720
2,936
(4,784)
84,025
84,025
141,952
57,927
8,789
8,789
50,647
41,858
6,609,706
6,609,706
6,682,021
72,315
994,063
994,063
580,806
413,257
3,098,779
3,098,779
3,287,172
(188,393)
1,437,363
1,437, 363
1,300,583
136,780
196,130
196,130
212,747
(16,617)
677,650
677,650
552,176
125,474
83,206
83,206
90,621
(7,415)
131,802
131,802
647,189
(515,387)
6,618,993
6,618,993
6,671,294
(52,301)
(9,287)
(9,287)
10,727
20,014
9,287
9,287
43,398
34,111
9,287
9,287
43,398
34,111
48
- 54,125 54,125
2,410,350 2,410,350
$ 2,464,475 $ 2,464,475
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
HIGHWAY, STREETS AND ROADS
YEAR ENDED SEPTEMBER 30, 2018
Resources
Property taxes
Highway user's revenue
Highway HB 312 user's revenue
Grant revenue
Road and bridge
Other revenues
Amendment
Amounts available for appropriations
Charges to appropriations
Salaries and personnel benefits
Supplies
Utilities
Building maintenance
Professional services
Street signing and marking
Street construction and maintenance
Equipment maintenance
Capital outlays
Amendment
Total charges to appropriations
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources
Interest expense
Proceeds from sale of assets
NET CHANGE IN FUND BALANCE
Budgeted Amounts
(4,000)
Variance
55,995
- (2,754,189)
Actuai
Positive
Original
Final
Amounts
(Negative)
$ 951,891
$ 951,891
$ 962,076
$ 10,185
525,000
525,000
530,693
5,693
-
-
163,427
163,427
73,847
73,847
174,663
100,816
-
-
13,165
13,165
-
2,530,210
-
(2,530,210)
1,550,738
4,080,948
1,844,024
(2,236,924)
752,000
752,000
581,407
170,593
7,500
7,500
13,755
(5,255)
6,500
6,500
9,762
(3,262)
9,500
9,500
11,471
(1,971)
14,000
14,000
35,359
(21,359)
128,500
128,500
160,687
(32,187)
566,988
566,988
222,676
344,312
65,750
65,750
101,802
(36,052)
-
-
3,513,289
(3,513,289)
-
2,530,210
-
2,530,210
1,550,738
4,080,948
4,650,208
(569,260)
(2,806,184) (2,806,184)
- (4,000)
(4,000)
_ - 55,995
55,995
- (2,754,189)
(2,754,189)
BEGINNING FUND BALANCE - 1,528,764 1,528,764
ENDING FUND BALANCE $ - $(1,225,425) $(1,225,426)
49
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF EMPLOYER'S SHARE OF NET PENSION LIABILITY
PERSI - Base Plan
Last 10 - Fiscal Years'
Employer's portion of the net pension liability
Employer's proportionate share of the net pension liability
Employer's covered -employee payroll
2018
2017
2016
2015
0.001606905
0,001542148
0.00145924
0,001459012
$ 2,370,213
$ 2,423,992
$ 2,958,104
$ 1,921,281
$ 5,142,733 $ 4,764,551 $ 4,225,127 $ 4,072,262
Employer's proportional share of the net pension liability as a
percentage of its covered -employee payroll 46.09% 50.88% 70-01% 47.18%
Plan fiduciary net position as a percentage of the total pension liability 91.69% 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 City
will present information for those years for which information is available
Data reported is measured as of June 30, 2018
50
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF EMPLOYER CONTRIBUTIONS
PERSI -- Base Plan
Last 10 — Fiscal Years
" 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 far which information is available.
Data is reported as a measurement of September 30, 2018.
51
2018
2017
2016
2015
Statutorily required contribution
$ 594,166
$
545,551
$
503,931
$ 469,058
Contributions in relation to the statutorily required contribution
$ 594,166
$
545,551
$
503,931
$ 469,058
Contribution (deficiency) excess
$ -
$
-
$
-
$ -
Employer's covered -employee payroll
$ 5,316,395
$
4,568,504
$
4,536,572
$ 4,225,217
Contributions as a percentage of covered -employee payroll
11.17%
11.94%
11.11 %
11.10%
" 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 far which information is available.
Data is reported as a measurement of September 30, 2018.
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 $188,393 due to an increase in law enforcement
personnel, administration and supplies, communications, crime prevention, and maintenance
expenditures. Expenditures in excess of budget were paid with additional unexpected revenues.
Building Inspection
The City had expenditures in excess of budget of $16,617 due to an increase in Building Inspection
personnel, supplies, and maintenance expenditures. These expenditures were paid using unspent
revenues from other funds.
Health & Welfare
The City had expenditures in excess of budget of $7,415 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 $515,387 due to an increase in equipment
expenditures. These expenditures were paid using unspent revenues from other funds and additional
revenues exceeding budget.
Highway,Streets and Roads
The City had expenditures in excess of budget of $569,260 due to the increase in capital outlays,
supplies, maintenance, professional services and street signing. The fund's budget was amended by an
increase of $2,530,210. The majority of expenditures were in Siphon Road Interchange construction,
which was a capital outlay. The expenditures were supported by a loan from the Sewer Enterprise Fund
for $4,000,000.
GV►A
OTHER SUPPLEMENTARY INFORMATION
53
ASSETS
Cash
FUND BALANCES
Committed, reported in:
Special revenue fund
CITY OF CHUBBUCK, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2018
$ 11,014 $ 57059 $ 82,633 $ 167,769 $ 250,080 S 516,555
54
See accompanying notes to financial statements
Special Revenue
Street
Juvenile
Road
Total
Guarantee
Referral
Court
Projects
Parks Nonmajor
Fund
Fund
Fund
Fund
Fund Funds
$ 11,014
5 5,059
$ 82,633
$ 167,769
$ 250,080 $ 516,555
$ 11,014 $ 57059 $ 82,633 $ 167,769 $ 250,080 S 516,555
54
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
55
See accompanying nates to financial statements
Special Revenue
Street
Juvenile
Road
Total
Guarantee
Referral
Court
Projects
Parks
Nonmajor
Fund
Fund
Fund
Fund
Fund
Funds
REVENUES
Donations
$ -
$ -
$ -
$ -
$ 38,088
$ 38,088
Other revenues
-
-
728
3,147
23,152
27,027
-
-
728
3,147
61,240
65,115
EXPENDITURES
Other purchased services
-
-
1,600
-
-
1,600
Capital Outlays
-
-
-
-
-
--
-
-
1,600
-
-
1,600
NET CHANGE IN FUND BALANCES
-
-
(872)
3,147
61,240
63,515
BEGINNING FUND BALANCE
11,014
5,059
83,505
164,622
188,840
453,040
ENDING FUND BALANCE
$ 11,014
$ 5,059
$ 82,633
$ 167,769
$ 250,080
$ 516,555
55
See accompanying nates to financial statements
NN
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2018
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2017
Employee
Central Health
Garage Insurance
2018
2017
Fund Fund
Totals
Totals
ASSETS
Current assets
Cash and cash equivalents
$ $ 626,505
$ 626,505
$ 858,228
- 626,505
626,505
858,228
Noncurrent assets
Restricted assets
Capital assets
269,103 -
269,103
269,103
Accumulated depreciation
(257,250) -
(257,250)
(254,679)
11,853 -
11,853
14,424
11,853 626,505
638,358
872,652
LIABILITIES
Current Liabilities
Accounts payable
3,080 -
3,080
80,486
3,080 -
3,080
80,486
Noncurrent Liabilities
3,080 -
3,080
80,486
NET POSITION
Net investment in capital assets
11,853 -
11,853
14,424
Unrestricted
(3,080) 626,505
623,425
777,742
$ 8,773 $ 626,505
$ 635,278
$ 792,166
NN
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, 2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2017
OPERATING REVENUES
Service revenue
OPERATING EXPENSES
Employee
Central Health
Garage Insurance 2018
Fund Fund Totals
$ 80,934 $ 162,055 $ 242,989
80,934 162,055 242,989
2017
$1,985,940
1,085,940
Personnel benefits
6,237
-
6,237
349,428
Repairs and maintenance
8,892
-
8,892
15,818
Supplies and tools
9,136
-
9,136
17;574
Travel, meetings, and training
3,005
-
3,005
11499
Fuels and lubricants
33,974
-
33,974
30,151
Utilities
13,283
-
13,283
14,532
Professional services
-
322,778
322,778
372,423
Depreciation
2,572
-
2,572
41037
77,099
322,778
399,877
805,462
OPERATING INCOME (LOSS)
3,835
(160,723)
(156,888)
280,478
CHANGES IN NET POSITION
3,835
(160,723)
(156,888)
280,478
BEGINNING NET POSITION
4,938
787,228
792,166
511,588
ENDING NET POSITION
$ 8,773
$ 626,505
$ 635,278
$ 792,166
57
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2018
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from revenues
Cash paid to suppliers
Cash paid to employees
Net cash provided by operating activities
CASH FLOW FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Purchase of capital assets
Net cash provided (used) in capital and related
financing activities
NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS
BEGINNING CASH AND CASH EQUIVALENTS
ENDING CASH AND CASH EQUIVALENTS
Employee
Central Health
Garage Insurance
Fund Fund 2018 2017
$80,934 $ 162,055 $ 242,989
$1,085,940
(74,696) (393,778) (468,474)
(459,423)
(6,238) (6,238)
(349,427)
- (231,723) (231,723)
277,090
(9,460)
(9,460)
(231,723) (231,723) 267,630
858,228 858,228 590,598
$ - $ 626,505 $ 626,505 $ 858,228
RECONCILIATIONS OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
Employee
Central Health
Garage Insurance
Fund Fund 2018 2097
OPERATING INCOME
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation
Increase (decrease) in liabilities
Accounts payable
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
58
$ 3,835 $(160,723) $(155,888) $ 280,477
2,571 2,571 4,037
(6,406) (71,000) (77,406) (7,424)
(3,835) (71,000) (74,835) (3,387)
$ - $ (231,723) $(231,723) $ 277,090
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Budgeted Amounts Variance
Actual Positive
Original Final Amounts (Negative)
Resources
General property taxes and sales tax
$ 18,600
$ 18,600 $ -
$ (18,600)
Interest income
6,600
6,600 -
(6,600)
Donations
80,000
80,000 38,088
(41,912)
Other resources
41,700
41,700 27,027
(14,673)
Amounts available for appropriations
146,900
146,900 65,115
(81,785)
Charges to appropriations
Street guarantee fund
19,100
19,100
-
19,100
Juvenile referral fund
500
500
-
500
Court fund
42,100
42,100
1,600
40,500
Road projects fund
1,200
1,200
-
1,200
Parks fund
84,000
84,000
-
84,000
Miscellaneous
-
-
-
-
Total charges to appropriations
146,900
146,900
1,600
145,300
NET CHANGE IN FUND BALANCE
-
-
63,515
63,515
BEGINNING FUND BALANCE
-
-
453,040
453,040
ENDING FUND BALANCE
$ -
$ -
$ 516,555
$ 516,555
*Wl
See accompanying notes to financial statements
STATISTICAL SECTION
60
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 62-69
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 70-73
These schedulers contain information to help the reader assess
the City's most significant local revenue source, the property tax.
Debt Capacity 7475
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.
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
61
CITY OF CHUBBUCK, IDAHO
Net Position By Components
Last Ten Fiscal Years
Accrual -Basis Accoynting)
62
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Governmental activities:
Net investment in capita l assets
$ 5,205,926 $
5,069,941 $
5,062,171 $
7,706,251 $
10,153,123
$ 11,396,599
$ 10,137,975
$ 11,138,639
$ 16,829,117
$ 24,019,218
Restricted
_
Unrestricted
1,380,855
1,825,092
2,451,160
2,896,706
3,592,593
4,130,936
4,532,072
6,181,447
3,212,484
547,753
Total gcvernmental activities net position
5,587,781
6,895,033
7,533,351
10,602,957
13,745,716
15,527,535
14,570,047
17,320,286
20,041,601
24,566,971
Business -type activities
Net investment in capita€assets
2,508,259
3,876,095
2,260,822
4,402,547
5,460,743
6,091,493
6,086,514
6,814,991
9,217,942
11,612,979
Restricted
819,972
132,650
237,961
169,061
165,761
167,481
165,181
166,731
168,131
164,850
Unrestricted
5,010,701
5,997,346
10,043,852
11,985,356
14,006,605
15,145,285
18,460,974
21,272,113
22,001,055
21,704,35$
Total business -type activities net position
8,338,932
10,006,091
12,542,655
15,557,084
19,633,129
22,404,259
24,712,569
28,253,835
31,387,129
33,482,164
Primary government
Net investment in capita l assets
7,715,185
8,946,036
7,342,993
12,108,898 $
15,613,866
$ 17,488,092
$ 15,224,489
$ 17,953,830
$ 26,047,059
$ 35,532,197
Restricted
619,972
192,650
237,981
169,081
165,781
167,481
165,181
165,731
168,131
164,850
Unrestricted
6,391,555
7,522,438
12,495,032
14,882,062
17,599,198
20,276,221
22,993,046
27,453,560
25,213,540
22,252,108
Total primary government net position
$ 14,926,713 $
16,901,124 $
20,075,006 $
27,160,041 $
33,378,845
$ 37,931,794
5 39,382,716
$ 45,574,121
$ 51,428,730
$ 58,049,155
62
CITY OF CHUBBUCK, IDAHO
Change in Net Position
Last7en Fiscal Years
(Accrual -Basis Accounting(
63
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Expenses
Governmental activities:
General Government
$ 206,342
$ 297,342
$ 229,616
$ 235,127
$ 352,910
$ 443,813
$ 542,494
$ 896,297
$ 880,217
$ 862,299
Law Enforcement
2,518,616
2,512,720
2,714,226
2,576,916
2,782,655
2,771,003
2,858,345
3,188,507
3,310,717
3,447,266
Fire Control
1,094,307
1,172,646
1,170,902
1,307,735
1,313,575
1,335,240
1,519.108
1,360,246
1,307,105
1,417,951
Building Inspection
154,402
159,482
165,214
156,409
163,631
172,439
172,946
199,277
199,336
217,171
Street
797,537
771,777
831,182
1,087,455
1,122,746
1,450,955
1,524,819
1,487,702
1,426,355
1,293,529
Parks & Recreation
571,561
625,569
544,793
534,574
494,692
484,041
529,372
591,638
601,054
653,876
Health and Welfare
30,850
56,154
44,487
31,462
39,552
51,165
41,171
76,884
83,293
90,521
Other Special Funds
131,873
30,419
857
17,113
5,150
350
-
20,196
150
1,600
CIAWWC Authority
-
-
-
-
4,574
2,930
2,930
609,036
609,036
-
Totalgovernmentalactivitiesexpenses
5,505,490
5.628,309
5,701,277
5,948,791
6,279,485
6,711,946
7,201,185
8,429,783
8,417,294
7,984,416
BUsiness-type activities:
Water
1,909,528
1,438,541
1,355,305
1,398,867
1,466,297
1,560,406
1,781501
1,793,535
1,726,443
2,111,162
sewer
1,792,591
1,821,035
1,669,178
1,847,034
2,072,020
1,709,310
2,200,476
2,319,135
2,363,009
2,649,245
Sa nitation
1,236,840
1,192, 952
1,174,725
1,132,300
1,116,071
1,219,283
1,060,216
1,221,934
1,637,470
1,732,030
CIAWWCAuthority
-
-
-
-
-
-
-
-
-
609,036
Total business -type activities program expenses
4,938,959
4,452,539
4,199,208
4,378,221
4,654,368
4,488,999
5,042,195
5,334,604
5,726,922
7,101,473
Total primary government program expenses
10,444,449
10,080,848
9,900,485
10,327,012
10,933,873
11,200,945
12,243,380
13,764,387
14,144,216
15,085.889
63
CITY OF CHUBBUCK, IDAHO
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting(
64
2CW
2010
2011
2012
2013
2014
2015
2016
2417
2018
Program Revenues
Governmental activities:
Charges for services:
General Government
135,964
121,602
237,249
133,608
203,578
134,555
298,505
365,049
414,674
323,186
Law Enforcement
-
-
-
-
-
35,311
28,918
31,942
29,940
Fire Control
164,847
195,564
180,020
210,650
191,317
232;992
197,261
211,041
214,172
237,675
Street
-
_
-
-
-
13,165
Parks & Recreation
51,817
59,186
70,900
6,534
4,955
7,203
9,752
10,589
12,728
149,681
CIAWWC Authority
_
,
-
-
-
-
-
fossa
_
Operating Grants and Contributions
121,553
184,265
64,685
43,512
128,818
33,200
48,090
43,890
71,329
84,653
Capital Grants and Contributions
-
-
-
-
-
916,767
2,667,268
2,354,109
3,644,635
Total governmental activities program revenues
474,201
560,617
552,854
394,604
528,658
407,950
1,505,606
3,325,755
3,109,934
4,482,935
Business -type activities:
Charges for services:
Water
2,080,766
2,1.93,212
2,204,723
2,385,464
2,582,932
2,422,542
2,680,920
2,783,945
2,728,684
2,896.320
Sewer
2,207,254
2,322,331
2,863,260
3,228,353
3,182,335
3,093,116
3,583,861
3,657,738
3,803,714
3,979,134
Sanitation
1,340,354
1,602,525
1,644,935
1,625,302
1,649,604
1,727,580
1,731,740
2,169t627
2,192,420
1,978,239
CIAWWC Authority
_
_
-
_
Operating Grants and Contributions
11,328
134,662
93,730
Capital Grants and Contributions
225,000
Total business -type activities program revenues
5,628,374
6,118,068
6,712,923
7,240,119
7,414,871
7,243,338
8,007,849
8,611,310
8,859,480
9,242,338
Total primary government program revenues
6,102,575
6,678,685
7,265,777
7,634,723
7,943,539
7,651,288
9,513,455
11,938,065
11,969,414
13,725,273
Net(EKpense)/neve nue
Governmental activities
(5,031,289}
(5,067,692)
(5,148,423(
(5,554,187)
(5,750,817(
(6,303,996)
(5,695,579)
(5,103,028)
(5,307,360)
(3,501,450)
Business -type activities
589,415
1,665,529
2,513,715
2,861,898
2,760,483
2,754,339
2,965,554
3,276,706
3,132,558
2,140,885
Total primary governmental net (expense)/revenue
(4,341,874)
(3,402,163)
(2,634,708)
(2,692,289}
(2,990,334)
(3,549,657)
(2.,729,925)
(1,826,322)
(2,174502)
(1,360,515?
64
CI'T'Y OF CHUBBUCK, IDAHO
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
65
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
General Revenues and other Changes in Net Position
Governmental activities:
General Property Ta Kes and Sales Tax
3,973,326
4,176,298
4,441,858
4,594,553
4,982,426
5,292,450
5,296,480
5,366,613
5,642,004
5,975,483
Franchise Fees
222,369
227,744
179,839
201,128
192,151
203,790
198,493
199,194
201,328
203,950
Intergovernmental
815,486
817,905
797,354
908,227
955,679
903,149
1,021,666
1,311,704
1,323,581
1,373,948
Leases and Rents
34,660
19,491
51
52,545
90,843
66,152
-
-
-
-
interest Income
26,714
19,292
30,738
36,797
60,357
60,651
76,828
90,432
98,064
157,760
Gain on Sale of Assets
61541
11,073
16,242
17,223
34,786
11,154
18,038
19,282
-
54,759
Capital Contributions
1,323,278
34,088
217,034
2,683,248
2,254,771
1,286,887
-
-
-
_
Other Revenue
39,323
-
35,491
18,486
89,066
14,366
41,828
766,042
763,697
199,888
Transfers In (Out)
28,000
-
-
-
-
(3,000)
-
-
-
_
CIAW WC Authority
-
-
-
-
228,000
228,000
-
-
-
-
Total governmental activities
6,469,697
5,305,892
5,769,200
8,512,208
8,888,091
8,063,599
6,653,333
7,753,267
8,028,674
7,965,788
Business -type activities:
Interest Income
58,039
22,844
22,849
32,121
544
574
-
-
-
4,000
Capital Contributions
116,041
-
-
1,125,220
261,081
13,217
-
-
-
-
Galn on Sale of Assets
-
-
-
10,800
2,400
2,530
86,100
736
11,252
Transfers in (Out)
(28,000)
-
-
-
-
3,000
100
-
-
-
Total business -type activities
146,080
22,844
22,849
1,168,141
264,125
16,791
2,630
86,100
736
15,252
Total primary government
6,615,777
5,328,736
5,792,049
9,580,349
9,152,216
8,080,390
6,655,963
7,839,367
8,029,410
7,981,040
Changes in Net Position
Governmental Activities
1,438,408
238,200
620,777
2,958,021
3,137,274
1,759,603
957,754
2,650,239
2,721,314
4,454,308
Business -type activities
835,495
2,608,373
2,536,564
4,030,039
3,024,606
2,771,130
2,368,284
3,362,606
3,133,294
2,156,117
Total primary government
5 2,273,903
$ 1,926,573
$ 3,157,341 $
6,988,060
$ 6,161,882
$ 4,530,733
$ 3,926,038
5 5,013,045
$ 5,854,608
$ 6,620,425
65
CITY OF CHUBBUCK, IDAHO
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
2009
2x10
2611 2612 2013 2014
2015
2016
2017
2018
General fund
Unassigned
$ 962,458
$ 1,334,763 $
1,884,064 $ 2,348,830 $ 2,708,737 $ 2,933,821
$ 2,952,093
$ 3,410,321
$ 3,939,114
$ 1,239,050
Total General Fund
962,458
1,334,763
1,884,064 2,348,830 2,708,737 2,933,821
2,952,093
3,410,321
3,939,114
1,239,050
All Other Governmental Funds
Committed
-
629,440 632,837 490,894 511,696
554,175
565,911
453,040
516,555
Unassigned:
Special revenue funds
622,179
613,032
- - -
-
_
Total all other govern mental funds
$ 622,179
$ 613,032 $
629,440 $ 632,837 $ 490,894 $ 511,696
$ 554,175
$ 565,911
$ 453,040
$ 516,555
CITY OF CHUBBUCK, IDAHO
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
67
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
Revenues:
property taxes and sales tax $
3,911,681 $
4,133,709 $
4,435,834
$ 4,567,959 $
4,984,949
$ 5,295,493
$ 5,349,772
$ 5,375,556
$ 5,627,350 $
5,930,753
Franchise fees
222,369
227,744
179,839
261,128
192,151
203,790
198,493
199,194
201,328
203,950
Intergovernmental
815,486
817,906
797,354
908,227
955,679
903,149
1,021,666
1,311,704
1,323,581
1,373,948
Court revenue
-
-
-
-
-
-
35,311
28,918
31,942
29,946
Parks revenue
3,379
2,499
1,977
2,399
1,720
2,668
5,402
7,529
10,733
7,729
License, permits and fines
135,984
121,502
237,249
133,808
293,578
134,555
219,868
289,199
320,850
231,180
Grants
87,840
158,025
58,465
27,892
302,500
14,800
466,000
248,290
336,433
43,629
Fire protection and prevention
164,847
195,564
180,020
210,650
191,317
232,992
197,261
211,041
214,172
237,675
Leases and rents
34,650
19,491
50,644
52,546
90,843
66,152
78,637
75,850
93,814
92,006
Interest Income
26,714
19,292
30,738
36,797
60,367
60,651
76,828
90,432
96,054
157,760
Donations
33,713
26,240
6,220
15,720
54,318
18,400
38,000
23,600
40,149
41,024
Donation of infrastructures
-
11,073
-
-
-
-
-
-
-
-
Charges for services
48,438
56,687
68,923
4,135
3,235
4,535
4,360
2,960
12,975
155,117
Other revenues
39,323
34,088
35,491
18,465
89,066
14,366
41,827
19,063
65,897
86,449
Total re v. nu.s
5,524,434
5,823,920
6,087,754
5,179,747
7,129,723
6,951,551
7,733,425
7,883,446
8,377,308
8,591,169
67
Exoenditures:
General government
Law enforcement
Fire control
Building inspection
Street
Parks and recreation
Health and welfare
Street guarantee fund
Court fund
Parks fund
Capital outlays
CIAW WC Authority
Total expenditures
Excess (deficiency] of Revenues over
(under) Expenditures
212,184 354,218 595,576 339,355 248,994 237,193
68
2015
2016
2017
CITY OF CHUBBUCK, IDAHO
574,204
496,074
2,843,478
Changes in
Fund Balances of Governmental Funds
1,431,180
1,713,866
1,181,308
Last Ten Fiscal Years
181,199
186,059
1,365,190
1,336,127
(Modified Accrual -iasis
of Accounting)
513,091
2009
2010
2011
2012
2913
2014
169,192
301,208
186,863
214,382
326,399
393,539
2,439,011
2,409,109
2,516,57.5
2,494,222
2,669,035
2,695,807
977„009
1,024,047
1,127,747
1,174,659
1,211,430
1,234,101
152,351
157,675
1 E5, 214
158,409
163,632
172,439
758,550
732,617
788,355
1,035,604
1,054,574
1,356,339
527,501
578,779
498,355
488,874
437,882
442,246
30,850
58,154
44,487
31,452
39,552
51,165
3,734
-
-
-
5,000
-
11,699
857
2,780
150
350
116,440
30,419
-
14,333
-
-
131,803
177,694
58,690
225,467
968,502
365,442
4,574
2,930
5,312,250
5,469,702
5,467,084
5,840,392
6,860,729
6,714,358
212,184 354,218 595,576 339,355 248,994 237,193
68
2015
2016
2017
483,135
574,204
496,074
2,843,478
2,969,661
3,062,347
1,431,180
1,713,866
1,181,308
174,432
181,199
186,059
1,365,190
1,336,127
1,270,359
498,932
513,091
592,769
41,171
76,884
83,293
1,566
156
18,69fi
4091
333,207
953,944
458,930
230,930
2,930
7,705,508
7,440,365
7,739,173
27,917
443,081
638,135
2018
580,806
3,287,172
1,300,583
212,747
1,136,919
552,176
90,621
1,500
4,160,478
11,323,102
(2,731,942(
CITY OF CHUBBUCK, IDAHO
Changes in Fund Balances of Governrnental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
s9
2009
2010
2011
2012
2913
2014
2015
2016
2017
2018
Other financing sources [uses}:
Proceeds from capital lease
56,491
85,772
-
_
_
-
-
-
Proceeds from note payable
-
-
-
175,281
155,468
11,686
2,930
Principal payments on leases
(153,670(
(72,089(
(43,139)
-
-
_
-
_
Principal payments
-
-
-
-
(249,263]
(154,929(
-
-
(236,050)
-
Inte-t expense
-
{4,743(
(3,064)
-
(5,330(
-
_
_
-
(4,000)
Proceeds from sale of assets
15,750
-
16,242
17,223
42,796
11,154
21,153
23,953
13,837
99,393
Transfers in (out(
28,000
-
_
_
-
(3,000(
Total other financing sources (uses)
(51,429(
8,940
(29,961)
17,223
(36,516)
8,693
32,833
26,883
(222,213(
95,393
Net Change in Fund Balances
160,755
363,153
565,7c9
355,578
212,478
245,885
60,750
469,964
415,922
{2,636,549}
Beginning Fund Balances
1,423,882
1,584,637
1,947,795
2,625,090
2,987,153
3,199,632
3,445,518
3,506,268
3,976,232
4,392,154
Prior Period Adjustment
-
-
111,586
-
-
-
_
Ending Fund Balances
$ 1,584,637
$ 1,947,795 $
2,625,090 $
2,981,668
$ 3,199,682
$ 3,445,518
5 3,506,2fi8
$ 3,576,232 $
4,392,154 $
1,755,505
s9
70
Total
Intergovernmental
Taxes
Total Taxes
82fi,208
5,425,865
805,407
5,171,141
CITY OF CHUBBUCK, IDAHO
5,399,762
908,227
5,677,315
955,680
6,132,781
903,148
6,526,424
General Government Tax and Intergovernmental
Revenues by Source
1,340,622
6,915,383
1,355,523
7,184,210
1,403,888
$ 7,538,591
Last Ten Fiscal Years
(modified accrual basis of accounting)
Local
Tax Revenues
lnitergovernmental
Revenues
Highway Streets
Total local
State Liquor Highway )ser'5
Court
Road &
Shared Sales
Fiscal Year
Property Tax
Franchise Tax
&Road
Sa les Tax
Taxes
Tax Revenue
Revenue
Bridge
Tax
2009
3,620,421
220,434
388,235
354,280
4,593,656
124,927 401,040
55,921
69,946
174,374
2010
3,784,225
230,678
345,227
4,365,734
131,927 397,058
42,589
65,582
168,241
2011
4,048,fi26
180,589
373,619
4,602,834
136,058 421,162
46,525
62,263
130,922
2012
4,118,011
201,128
449,949
4,759,088
149,070 451,302
41,915
59,652
206,288
2913
4,497,017
192,152
487,932
5,177,101
154,777 463,463
38,277
72,887
226,276
2014
4,781,207
203,790
114,496
514,266
5,623,276
152,877 467,297
30,315
65,326
185,833
2015
4,813,441
198,493
536,331
5,548,265
148,641 494,812
35,312
112,443
265,770
2016
4,154,281
199,194
645,147
565,139
5,574,761
158,211 664,004
28,918
198,456
291,023
2017
4,367,685
201,328
571,556
588,016
5,828,667
160,0fi6 574,106
31,942
175,062
314,347
2018
$ 4,342,621
$ 203,950
S 962,076
$ 625,056
6,134,703
$ 164,971 $ 685,345 $
29,940
$ 174,663
$ 346,969 $
70
Total
Intergovernmental
Taxes
Total Taxes
82fi,208
5,425,865
805,407
5,171,141
796,928
5,399,762
908,227
5,677,315
955,680
6,132,781
903,148
6,526,424
1,056,978
6,605,243
1,340,622
6,915,383
1,355,523
7,184,210
1,403,888
$ 7,538,591
Local Taxes as a
Percentage of
Tota I
85%
84%
85%
84%
84%
85%
84%
81%
81%
819,
CITY 0F CHUBBUCK, IDAHO
Assessed Valuation and Tax Rate
Last Ten Fiscal Years
Fiscal Year
Real and Personal
Tax Roll
Utilities Tax Roll
Actual Sub Roll
Exemptions Home
Owner's
Exemptions Personal
Property
Total Assessed Actual
Value
Levy Rate
Tax Rate Per $1,000
Value
2003
441,194,413
6,741,267
368,403
237,118,306
-
685,42Z,389
0.008404576
$
8.40
2010
431,386,854
6,776,598
704,500
214,484,395
-
653,352,347
0.008466774
$
8.47
2011
436,089,131
7,435,674
302,838
230,651,324
-
674,478,967
0,009150122
$
9.15
2012
446,262,451
7,358,180
488,182
225,397,223
-
679,506,036
0.009324266
$
9.32
2013
454,554,481
7,573,803
513,109
243,675,558
638,203
666,955,154
0.009969299
$
9.97
2014
459,147,628
7,502,193
1,138,795
235,839,910
-
704,628,526
6.009967676
$
9.97
2015
461,446,210
7,884,553
1,017,251
238,171,372
81,774
708,595,166
0A09933799
$
9.93
2015
475,051,058
7,702,297
1,697,797
251,008,396
81,774
735,541,322
0.010140122
$
10.14
2017
507,182,903
8,152,805
469,490
263,554,422
81,744
779,440,964
0.010188661
$
10.19
2018
524,061,262
9,276,081
-
263,554,022
81,774
796,973,139
0.010636971
$
10.64
*Preliminary Assessment Values
Source: Bannock County Clerks Office
Note: Twenty percent of the property in the county is reassessed annually. The County assesses propertyat 100% of market value. Tox rates are per $1,000 of assessed value,
71
City of Chubbuck
Year
City Rates
2009
0.008404576
2010
0.008466774
2011
0.009150122
2012
0.009324266
2013
0.009969299
2014
0.009967676
2015
0.009933799
2016
0.010140122
2017
0,010188661
2018
0.010636971
CITY OF CI-IUBBUCK, IDAHO
Property Tax hates
Direct and Overlapping (1) Governments
Last Ten Fiscal Years
{per $1,000 of assessed value}
City of Chubbuck
Overlapping Rates
County Road &
Portneuf Library
Ambulance Service
School District 25
Combined Levy
Base Rates
Bannock County Rates
Bridge Rates
Abatement Rates
Rates
Rates
Rates
Rates
8.40
5.13
0.64
-
0.62
0.25
4.25
19.29
8.47
5.17
0.61
0.17
0.61
0.25
3.82
19.10
9.15
5.28
0.43
0.15
0.57
0.25
3.86
19.70
9.32
4.82
0.41
0.13
0.61
0.24
3.90
19.43
9.97
4.92
0.47
0.05
0.61
0.40
4.49
20.91
9,97
5.30
0.48
0.05
0.57
0.40
4.14
20.91
9.93
5.28
0.85
0.04
0.58
0.40
4.42
21.50
10.14
5.24
0.73
0.03
0.61
0.40
3.94
21.09
10.19
5.37
0.67
0.03
0.58
0.40
3.88
21.12
10.64
5.62
0.61
0.40
0.47
0.03
3.85
21.62
Source: Bannock County Assessors Office
(1} Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck.
72
CITY OF CHUBBUCK, IDAHO
Principal Taxpayers
September 30, 2018
201$ 2009
*Estimated Assessment Values
Source: Bannock County Assessors Office
73
Percentage of
Total Assessed
Valuation *
3.50%
2.74%
1.52%
1.45%
1.04%
0.90%
0.85%
0.84%
0.74%
0.62%
Percentage of Total
Assessed Valuation
Rank
Assessed
15,249,619
Taxpayer
Type of Business
Valuation
Rank
IDAHO CENTRAL CREDIT UNION
BANK
27,900,092
1
PINE RIDGE MALL JC LLC
RETAIL
21,863,255
2
NEIBAUER CHUBBUCK HOLDINGS LLC
0.72%
12,074,400
3
WAL MART REAL ESTATE
RETAIL
11,555,700
4
HD DEVELOPMENT OF MARYLAND INC
7
8,250,900
5
SHJH LLC
APARTMENTS
7,172,500
6
CARMIKE CINEMAS INC.
ENTERTAINMENT
6,811,100
7
TEKLE, HAILE
6,709,800
8
ALLSTATE INSURANCECOMPANY
INSURANCE/FINANCE
5,858,019
9
RATUFF, GARY
4,909,089
10
SHOPKO SPE REAL ESTATE LLC
RETAIL
EMERITOL RIDGE WIND LLC
SEARS ROEBUCK AND CO.
APARTMENTS
GOLDING FAMILY LIMITED
RETAIL
Total Top Ten
$ 113,104,855
*Estimated Assessment Values
Source: Bannock County Assessors Office
73
Percentage of
Total Assessed
Valuation *
3.50%
2.74%
1.52%
1.45%
1.04%
0.90%
0.85%
0.84%
0.74%
0.62%
Percentage of Total
Assessed Valuation
Rank
Assessed Valuation
15,249,619
2
2.22%
19,750,700
1
2.88%
10,126,800
3
1.48%
6,255,830
4
0.91%
4,955,000
5
0.72%
3,547,355
10
0.52%
4,474,725
6
0.65 %
4,244,700
7
0.62%
3,863,254
8
0.56%
3,828,500
9
0.56%
76,296,483 11.13%
CITY OF CHUBBUCK, IDAHO
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(accrual basis of accounting)
Note: The estimated populations for years 2009, 2012, and 2014 were not available and so the most current estimate was used for these years.
Source: (1) U.S. Census
74
Governmental
Activities
Business Type Activities
(1}
Fiscal
Sanitation
Water Fund
Water Note
Sewer Note
Total Primary
Estimated
Per
Year
Capital Lease
Notes
Sewer Band
Certificates Water Bond
DEQ
DEQ
Government
Population
Capita
2009
29,466
2,529,129
235,000
150,000
313,061
1,038,509
4,295,165
11,828
363
2010
43,139
2,249,257
125,000
-
298,454
8,910,084
11,625,934
13,922
835
2011
-
1,953,409
65,000
1,995,000
283,370
16,952,087
21,248,866
14,067
1,511
2012
-
1,382,774
-
1,830,000
267,790
17,665,819
21,146,383
14,067
1,503
2013
27,739
1,265,080
1,720,000
251,448
16,873,075
20,137,342
14,125
1,426
2014
-
1,130,594
1,610,000
234,833
16,436,562
19,411,989
14,125
1,374
2015
1,076,827
1,495,000
217,757
16,363,232
19,152,816
14,229
1,346
2016
998,848
1,380,000
200,381
15,297,931
17,877,160
14,517
1,231
2017
927,972
1,260,000
181,814
14,445,285
16, 815,171
14,644
1,148
2018
847,636
1,135,000
2,746,190
13,592,841
18,321,667
14,869
1,232
Note: The estimated populations for years 2009, 2012, and 2014 were not available and so the most current estimate was used for these years.
Source: (1) U.S. Census
74
CITY OF CHUBBUCK, IDAHO
Revenue Bond Coverage
Water Fund
Last Ten Fiscai Years
(1( Total revenues ( including interest)
(2) Total operating expenses exclusive of deprecation.
(3) Includes principal and interest of revenue bonds only.
(4( Pledge of Revenues requires the City to provide net revenues equal to not less than 1.25 times the average annual debt service on the bond.
75
Oebt5ervice Requirements (3)
Pledge of
Net Revenue
Revenues
Available for Debt
Coverage
Fiscal Year
Gross Revenue (1)
Operating Expense (2)
Service
Principal
Interest
Total
Coverage
Requirement (4)
2009
-
-
2010
2011
2,219,014
1,229,611
989,403
100,000
24,663
124,663
7.94
6.35
2012
2,411„854
1,222,469
1,189,385
110,000
60,068
170,068
6.99
5.59
2013
2,583,575
1,263,607
1,319,969
110,000
58,338
168,338
7.84
6.27
2014
2,423,115
1,351,349
1,071,767
115,000
56,574
171,574
6.25
5.00
2015
2,680,920
1,532,822
1,148,098
115,000
52,863
167,863
6.84
5.47
2015
2,783,945
1,535,492
1,248,453
120,000
55,514
175,514
7.11
5.69
2017
2,728,584
1,472,240
1,256,444
125,000
45,443
170,443
7.37
5.90
2018
2,896,320
1,832,479
1,063,841
125,000
34,175
159,175
6.68
5.35
(1( Total revenues ( including interest)
(2) Total operating expenses exclusive of deprecation.
(3) Includes principal and interest of revenue bonds only.
(4( Pledge of Revenues requires the City to provide net revenues equal to not less than 1.25 times the average annual debt service on the bond.
75
CITY OF CHUBBUCK, IDAHO
Statistical Information
Water Fund
September 30, 2018
Schedule of Water Revenue and Production For Residential,
Commercial, and Government Accounts
Total Revenue $ 2,896,320
Estimated number of active customers 4,230
Total water produced (gal€ons) 785,004
Schedule of Water Rates
Monthly Base. Fee (by meter size)
Size
Price Circuit Breaker
1" or less
$ 24.00 $ 16.80
1.5 "
69.10
2"
106.95
3"
222.45
4"
364.60
6"
736.70
8"
1,153.75
10"
1,76260
Volumetric charge: $1.15 per 1,000 gallons metered water.
Volumetric charge for circuit breaker: $.80 per 1,000 gallons
metered water.
76
CITY OF CHUBBUCK, IDAHO
Ten Largest Water System Customers
For The Fiscal Year Ended September 30,2018
(per 1,000 gallon used)
Customer
Pine Ridge Mall JC LLC
Circle Inn Trailer Park
Camelot Trailer Park
Home Depot
Meadows MHP
Travel Lodge
Idaho Central Credit Union
Pheasant Ridge HCA Inc.
Walmart Inc.
Pine Ridge Idaho LLC
Total Top Ten Consumers
Total Usage
77
785,004
1') no/
% of Total
Water
Top Ten
% of Total
Business Type
Usage
Consumers
Usage
Shopping Center
47,344
50.1%
6.0%
Mobile Home Park
7,131
7.6%
0.9%
Mobile Home Park
5,767
6.1%
0.7%
Home Improvement Store
5,493
5.8%
0.7%
Apartment Complex
5,352
5.7%
0.7%
Motel
5,207
5.5%
0.7%
Banking
4,724
5.0%
0.6%
Residential Development
4,589
4.9%
0.6%
Shopping Center
4,495
4.8%
0.6%
Apartment Complex
4,334
4.6%
0.6%
94,436
100.0%
77
785,004
1') no/
CITY OF CHUBBUCK, IDAHO
Statistical Information
Sewer Fund
September 30, 2018
Schedule of Sewer Revenue For Residential, Commercial, and Government
Accounts
Total Revenue
Schedule of Sewer Rates
Monthly Base Fee
Regular
Residential $ 46.05
NWSI Residential 10.45
$ 3,979,134
Circuit Breaker
$ 32.23
Commercial rate for businesses {North of the Interstate is $6.50343 per $1,000
gallons of water used.
Commercial rate for businesses South of the Interstate is $7.49343 per $1,000
gallons of water used.
NWSI Commercial rate is winter water average usage divided by $6.85 and
multiplied by $10.45.
78
SINGLE AUDIT SECTION
79
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Fiscal Year Ended September 30, 2018
Federal Grantor/Pass-Through Grantor/Program Title CFDA Grant Number Expenditures 5ubrecipients
U.S. Department of Transportation
Transit Services Programs Cluster:
Passed through the Idaho Transportation Department
Enhanced Mobility for Seniors and Individuals with Disabilities 20.513 ID -2016-021-01 77,253.00
Highway Safety Cluster:
Passed through the Idaho Transportation Department
State and Community Highway Safety
National Priority Safety Programs
Total Highway Safety Cluster
Total U.S. Department of Transportation
U.S. Department of Environmental Protection AeencV
Drinking Water State Revoiving> and Cluster:
Passed through the State of Idaho Department of Environmental Quality
Capitalization Grants for Drinking Water State Revolving Funds
Total U.S. Department of Environmental Protection Agency
Total Expenditures of Federal Awards
20.6D0
SPT1702
3,000.00
20.600
SSB18EB
3,017.00
20.600
SPTIS02
2,652.00
20.608
164AL-2018-DS(S641805}
10,375.00
19,054.00
20.616
SIDI7EE
4,000.01)
20.616
S€D1721
2,923,00
20.616
SIDI8EB
2,490.00
20.616
SIDI8EC
2,712.00
20.616
SIDISED
2,450.00
14,575.00 -
33,629.00
110, 882.00
66.468 DW1602 2,583,149,00
80
See accompanying notes to financial statements
2,583,149.00
2,694,031.00
CITY OF CHUBBUCK, IDAHO
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
NOTE 1. BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards (Schedule) includes the federal
award activity of the City of Chubbuck (City) under programs of the federal government for the year
ended September 30, 2018. The information in this Schedule is prepared in accordance with the
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Because the Schedule presents only a selected portion of the operations of the City, it is not intended
to and does not present the financial position, changes in assets, or cash flows of the City.
NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Expenditures reported on the Schedule are reported on the modified accrual basis of accounting.
Such expenditures are recognized following the cost principles contained in the Uniform Guidance,
wherein certain types of expenditures are not allowable or are limited as to reimbursement.
NOTE 3. DE MINIMIS INDIRECT COST RATE
The City has elected not to use the 10 -percent de minimis indirect cost rate allowed under the Uniform
Guidance. The City has no federal grants subject to indirect costs.
NOTE 4. SUBRECIPIENTS
The City does not pass federal awards received from federal funding to other governments or not-for-
profit agencies (subrecipients).
NOTE 5. MATCHING REQUIREMENTS
The federal funding received by the City does not require the City to contribute matching funds to
support the federal funded programs.
81
Deaton & Company, Chartered
Certified Public Accountants
215 ]North 9th, Suite
Pocatello, Idaho 83201-5278
(208) 232-5825
Members of Idaho Snciely orCertified Public Accountants
Members orAmerican InstiLtne orCertified Public Accowxams
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, 2018, 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 28,
2019.
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 28, 2019
Deaton & Company, Chartered
Certified Public Accountants
215 North 9th, Suite A
Pocatello, Idaho 83201-5278
(208)232-5825
Members of Idaho Socicly ofCcrtificd Public Accountants
Members orAmerican lnatilute of Certified Public Accountants
■ 1 fl 2W A 1\11W 9111i i its • � ■Q ii:s==k
INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the Honorable Mayor and Members of the City Council
City of Chubbuck, Idaho
Report on Compliance for Each Major Federal Program
We have audited City of Chubbuck's compliance with the types of compliance requirements described
in the OMB Compliance Supplement that could have a direct and material effect on each of City of
Chubbuck's major federal programs for the year ended September 30, 2018. City of Chubbuck's
major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts, and
grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on compliance for each of City of Chubbuck's major federal
programs based on our audit of the types of compliance requirements referred to above. We
conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States; and the audit
requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance).
Those standards and the Uniform Guidance require that we plan and perform the audit to obtain
reasonable assurance about whether noncompliance with the types of compliance requirements
referred to above that could have a direct and material effect on a major federal program occurred. An
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of City of Chubbuck's
compliance.
Opinion on Each Major Federal Program
In our opinion, City of Chubbuck, complied, in all material respects, with the types of compliance
requirements referred to above that could have a direct and material effect on each of its major
federal programs for the year ended September 30, 2018.
Report on Internal Control Over Compliance
Management of City of Chubbuck, is responsible for establishing and maintaining effective internal
control over compliance with the types of compliance requirements referred to above. In planning and
performing our audit of compliance, we considered City of Chubbuck's internal control over
compliance with the types of requirements that could have a direct and material effect on each major
federal program to determine the auditing procedures that are appropriate in the circumstances for the
purpose of expressing an opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis.
A significant deficiency in internal control over compliance is a deficiency, or a combination of
deficiencies, in internal control over compliance with a type of compliance requirement of a federal
program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Pocatello, Idaho
March 28, 2019
CITY OF CHBBUCK, IDAHO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
SECTION I - SUMMARY OF AUDITOR RESULTS
Financial Statements
Type of auditor's report issued: Unmodified
Internal control over financial reporting
Material weakness(es) identified? No
Significant deficiencies identified? No
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs
Material weaknesses identified? None reported
Significant deficiencies identified? None reported
Type of auditor's report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with 2 CFR section 200.516(a)? No
Ma'or programs
CFDA Number Name of Federal Program
Capitalization Grants for Drinking Water
66.468 State Revolving Funds
Dollar threshold used to distinguish between type A and type B
programs: $ 750,000
Auditee qualifies as a low-risk auditee? No
SECTION II - FINDINGS - FINANCIAL STATEMENT AUDITS
None
SECTION III - FINDINGS AND QUESTIONED COSTS - MAJOR FEDERAL AWARD PROGRAMS AUDIT
None
F.%
From: Lopez Aguilar, David <David.LopezAguilar@usbank.com>
Sent: Friday, March 29, 2019 12:41 PM
To: Dan Christensen
Cc: Williamson, Tim
Subject: Published Submission Confirmation- City of Chubbuck Water Rev Bds
Ser
2011
Attachments: Submission Confirmation ES971724.pdf
Hello,
In compliance with the Continuing Disclosure Agreement, U.S. Bank National
Association, acting in its
capacity as Dissemination Agent, has provided the Annual Financial/Operating Filing
for the above
referenced issue(s) via electronic transmission to Electronic Municipal Market
Access
(http://emma.msrb.org)
https://emma.msrb.org/MarketActivity/ContinuingDisclosureDetails/ES971724
If you should have any questions, please feel free to contact me at 213-615-6019.
Thank you,
David Lopez
Corporate Trust Control Spec
p. 213.615.60191 david.lopezaguilar@usbank.com
U.S. Bank
Global Corporate Trust
633 W 5th St, Los Angeles, CA 90071 1 LM-CA-T24T I 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 (CRES)
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
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Thank you in advance for your cooperation.
Submission Preview Print
III MSRB
Municipal Securities Rulemaking Board
Page l of 2
Submission ID:ES971724
03/29/2019 14:39:43
CONTINUING DISCLOSURE (SUBMISSION STATUS: PUBLISHED)
FINANCIAL/OPERATING FILING (CUSIP-9 BASED)
Rule 15c2-12 Disclosure
Audited Financial Statements or CAFR for the year ended 0 913 012 0 1 8
Documents
!-Financial operating Filing
Disclosure Report CAFR Sep 2018-Public.pdf posted 03129/2019
The following issuers are associated with this continuing disclosure submission:
CUSIP-6
State
Issuer Name
171259
ID
CHUBBUCK IDAHO VTR REV
The following 8 securities have been published with this continuing disclosure
submission:
CUSIP-9
Maturity Date
171259BC7
09/01/2019
171259BD5
09/01/2020
171259BE3
09/01/2021
171259BFO
09/01/2022
171259BG8
09/01/2023
171259BH6
09/01/2024
171259BJ2
09/01/2025
171259BK9
09/01/2026
https://dataport.emma.msrb.org/SLibmiSSion/SLibmissioiiPreviewPrint.aspx?subm1ssionId=... 3/29/2019
Submission Preview Print
Page 2 of 2
Issuer's Contact Information
Obligor's Contact information
Company:
Name: Dan Christensen
Address:
City, state Zip:
Phone Number:
Email: dchristensen@cityofchubbuck.us
Q 2019 Municipal Securities Rulemaking Board (MSRB)
https:Hdataport.emma.msrb.org/Submission/SubmissionPreviewPrint.aspx?submissionld=... 3/29/2019