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oAHo CITY OF CHUBBUCK, IDAHO COMPREHENSIVE ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 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 25-26 Independent Auditor's Report 10-11 Management Discussion and Analysis 12-21 Basic Financial Statements: 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 33-47 Required Supplementary Information 48 Budgetary Comparison Schedule - General Fund 49 Budgetary Comparison Schedule - Highway, Streets and Roads 50 Schedule of Employer's Share of Net Pension Liability 51 Schedule of Employer Contributions 52 Notes to Required Supplementary Information 2 53 CITY OF CHUBBUCK, IDAHO ANNUAL FINANCIAL REPORT FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2019 TABLE OF CONTENTS - CONTINUED Page Other Supplementary Information 54 Combining Balance Sheet - Nonmajor Governmental Funds 55 Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds 56 Statements of Net Position - Internal Service Funds 57 Statements of Revenues, Expenses, and Changes in Net Position - Internal Service Funds 58 Statements of Cash Flows - Internal Service Funds 59 Budgetary Comparison Schedule - Nonmajor Governmental Funds 60 Statistical Section 61 Statistical Section - Table of Contents 61 Financial Trends 62-69 Revenue Capacity 70-73 Debt Capacity 74-76 Operating Information 77-79 Single Audit 80 Schedule of Expenditures of Federal Awards 81 Notes to the Schedule of Expenditures of Federal Awards 82 Independent Auditor's 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 83-84 Independent Auditor's Report on Compliance for Each Major Program; and Report on Internal Control Over Compliance Required by the Uniform Guidance 85-86 Schedule of Findings and Questioned Costs 87 9 INTRODUCTORY SECTION CHUBBUCI( 1 0 R H 0 www.citvofchubbuck.us 5160 Yellowstone, PO Box 5604 Chubbuck, ID 83202 (208) 237-2400 phone (208) 238-2371 fax MAYOR Kevin England March 27, 2020 COUNCIL MEMBERS Ryan Lewis Annette Baumeister Melanie Evans Roger Hernandez The Honorable Mayor Kevin England, Members of the City Council, and Citizens of the City of Chubbuck: Idaho State Law requires that all general-purpose local governments with an annual budget that exceeds two hundred fifty thousand dollars submit copies of their audited financial statements to the legislative council. The statements must be presented in conformity with generally accepted accounting principles (GAAP) and audited in accordance with generally accepted auditing standards (GRAS) by a firm of licensed certified public accountants. Pursuant to those requirements, we hereby issue the comprehensive annual financial report for the City of Chubbuck for the fiscal year ended September 30, 2019. Management assumes full responsibility for the completeness and reliability of the information contained in this report, based upon a comprehensive frame -work of internal control that is established for this purpose. Because the cost of internal control should not exceed anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial statements are free of any material misstatements. Deaton & Company, Chartered, a firm of licensed certified public accountants has issued an unmodified opinion on the City of Chubbuck's financial statements for the year ended September 30, 2019. The independent auditor's report is located at the front of the financial section of this report. Management's Discussion and Analysis (MD &A) immediately follows the independent auditor's report and provides a narrative introduction, overview, and analysis of the basic financial statements. MD&A complement this letter of transmittal and should be read in conjunction with it Profile of the City of Chubbuck The City of Chubbuck (population 15,316) 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 property taxes on both real and personal property within the city limits. It also is empowered by state statue to extend its corporate limits by annexation, which it had done from time to time. The City of Chubbuck operates under the Council -Mayor form of government. Policy-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 full range of services. These services include Public Safety (police, fire, animal control, and building inspection); Environmental Health (sanitation, water, waste water treatment and storm water management); Transportation (street & highway maintenance and traffic engineering); Recreational (parks and recreation); Neighborhood Quality (engineering, planning and development, community services) and Administration (mayor/council, finance, elections, human resources, legal risk management, and information technology). In addition to general government activities, the Mayor and City Council exercise, or have the ability to exercise, oversight of the Chubbuck Development Authority, a legally separate corporation. Therefore, its activities are included as a separate component unit in the reporting entity. The annual budget serves as the foundation for the City of Chubbuck's financial planning and control. After reviewing service levels from the previous fiscal year, the Council analyzes draft budget requests during May. The Chief Financial Officer and Mayor are responsible for preparing a draft budget for the Council. The budget is prepared by fund, function and activity, and includes information on the past year, current year estimates and requested appropriation for the next fiscal year. Prior to August 1, the City's Chief Financial Officer and the Mayor submit the proposed budget to the City Council for review. The City Council holds public hearings and may add to, subtract from or change the proposed budget, but may not change the form of the budget. Prior to August 30, the budget is legally enacted through passage of the annual appropriation ordinance (not in excess of the proposed budget) by the City Council. Expenditures may not exceed budgeted appropriations at the fund level. City management can legally amend or transfer appropriations within individual funds but not between funds which requires the approval of the City Council in a budget amendment, which follows a public notice, public hearing and amended ordinances adoption process similar to the adoption of the original budget. Budgets are integrated into the accounting system to facilitate management control during the year. The Council reviews service levels for all departments prior to entertaining budget requests for the next fiscal year. Revenue projections receive equal attention and the Council makes budget decisions sufficient to balance the budget against projected revenues. Cash balances and budget to actual trends are monitored monthly. The preparation of the comprehensive annual financial report was made 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 this project. Credit also must be given to the Mayor and the City Council for their support for maintaining high standards of professionalism in the management of the City of Chubbuck's finances. Respectfully submitted March 27, 2020 Rich Morgan Daniel Christensen City Treasurer City Accountant CITY OF CHUBBUCK, IDAHO List of Principal Officials SEPTEMBER 30, 2019 Title Elected Officials Mayor Council President Council Member Council Member Council Member City Officials City Attorney Public Works Director City Engineer Sewer/Water Superintendent Sanitation/Streets Superintendent City Clerk/Treasurer Human Resource Officer City Accountant Planning and Development Police Chief Computer Information Systems Parks & Recreation Fire Chief 13 Name Kevin England Ryan Lewis Annette Baumeister Melanie Evans Roger Hernandez Tom Holmes Rodney Burch Bridger Morrison Bryan Hall Paul Hathaway Rich Morgan Scott Gummersall Dan Christensen Devin Hillam Bill Guiberson Sergei Tomin Bill Guinn Merlin Miller CITY OF CHUBBUCK ORGANIZATION CHART LEGAL SERVICESI I PDIRECTOROF HUMAN UB ICWORKS I I RESOURCES COMCITY PUTER I I ENGINEERING I I PLANNING STREETI I UTILITIES PARKSAND I I RECREATION WATER I I SEWER I I SANITATION UTILITY BILLING I POLICE I FIRE J CITY CLERK DEPARTMENT 1 DEPARTMENT FANIMAL FINANCE CONTROL STREETI I UTILITIES PARKSAND I I RECREATION WATER I I SEWER I I SANITATION UTILITY BILLING Deaton & Company, Chartered Certified Public Accountants RIM =I 215 North 91h, Suite A Pocatello, ID 83201-5278 (208) 232-5825 Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Chubbuck, Idaho Report on the Financial Statements We have audited the accompanying financial statements of the governmental activities, the business -type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Chubbuck as of and for the year ended September 30, 2019, 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, 2019, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters Required Supplementary Information Accounting principles generally accepted in the United States of America require that the management's discussion and analysis, budgetary comparison information, and pension schedules on pages 12-21, 48-50 and 51-52, respectively, be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our audit of the basic financial statements. We do not express an opinion or provide any assurance on the information because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any assurance. Other Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City of Chubbuck's basic financial statements. The introductory section, combining and individual nonmajor fund financial statements and statistical section, are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining and individual nonmajor fund financial statements and budgetary comparison schedule - nonmajor governmental funds are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements and the schedule of expenditures of federal awards are fairly stated in all material respects in relation to the basic financial statements as a whole. The prior year summarized comparative information has been derived from the City's 2018 audited financial statements and, in our report dated March 28, 2019, 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 27, 2020, 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 27, 2020 CITY OF CHUBBUCK, IDAHO Management's Discussion and Analysis For the Year Ended September 30, 2019 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, 2019. 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 $63,211,770 (net position). • The governments net position increased by $5,588,676. Approximately 18 percent of this increase, $1,019,354, is attributed to capital contributions. • At the end of the current fiscal year, unassigned fund balances for the general fund was $2,360,265 or 32 percent of total general fund expenditures. • In the City's business -type activities, operating revenues increased by $375,308, and operating expenses increased by $47,837. 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 $2,070,860 (Including compensated absences). The increase was primarily due to accrued payroll, interest payable, unearned revenue, compensated absences, notes payable, utility deposits. • 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 33-47 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 and deferred outflows exceeded liabilities and deferred inflows by $63,211,770 as of September 30, 2019. 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 City of Chubbuck's Net Position Governmental Activities Business ActivitiesI Total 2019 2018 2019 2018 2019 2018 $ 2,546,846 $ 3,472,548 $ 23,296,847 $ 21,778,071 $ 25,843,693 $ 25,250,619 26,473,293 24,019,218 38,291,285 33,562,536 64,764,578 57,581,754 29,020,139 27,491,766 61,588,132 55,340,607 90,608,271 82,832,373 250,971 334,119 123,623 164,581 374,594 498,700 LIABILITIES Long-term liabilites outstanding 1,550,806 1,878,761 21,719,997 18,183,675 23,270,803 20,062,436 Other liabilites 1,077,689 1,110,046 2,601,129 3,706,279 3,678,818 4,816,325 2,628,495 2,988,807 24,321,126 21,889,954 26,949,621 24,878,761 DEFERRED INFLOWS Pension 550,370 270,107 271,104 133,050 821,474 403,157 NET POSITION Net investment in captial 26,473,293 24,019,218 11,876,681 11,612,979 38,349,974 35,632,197 Restricted - - 166,100 164,850 166,100 164,850 Unrestricted 381048 547,753 25,076,744 21704355 24,695,696 22,252,108 Total net position 26,092,245 24,566,971 37,119,525 33,482,184 63,211,770 58,049,155 An additional portion of the City of Chubbuck's net position $166,100, represent resources that are subject to external restriction on how they may be used. The remaining balance of unrestricted net position $24,695,696, may be used to meet the governments' ongoing obligation to citizens and creditors. As of September 30, 2019, 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, 86 percent of the liabilities are made up of noncurrent liabilities The decrease in noncurrent liabilities is due to notes payable accrued compensated absences. 15 Governmental activities. Governmental activities' key elements are broken down in the following charts. Government activities increased net position by $1,706,027 and business -type activities increased net position by $3,882,649. The City of Chubbuck's direct charges to users of governmental services made up $753,647. 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 2019, include the fire department and police department and accounts for 61 percent. The second largest portion of expenditures is the parks and street department which accounts for 19 percent. General government accounts for 11 percent in expenditures. Below is summary of the City of Chubbuck's Changes in Net Position. REVENUES Program revenues: Charges for services Operating grants and contributions Capital grants and contributions General revenue: Property taxes and sales tax Franchise fees and intergovernmental Other Transfers in Total Revenues EXPENSES General government Public safety Building inspection and street Parks and recreation Health, welfare, and other Water Sewer Sanitation CIAW WC Authority Transfers out Totalexpenses NET CHANGE IN NET POSITION NET POSITION beginning Prior Period Adjustment NET POSITION ending City of Chubbuck's Changes in Net Position GovernmentalActivities Business Activities Total 2019 2018 2019 2018 2019 2018 $ 642,787 $ 753,647 $ 9,166,366 $ 8,920,608 $ 9,809,153 $ 9,674,255 179,095 84,653 - 93,730 179,095 178,383 1,019,354 3,644,635 1,045,754 228,000 2,065,108 3,872,635 6,499,369 5,975,483 - - 6,499,369 5,975,483 1,593,100 1,577,898 - - 1,593,100 1,577,898 369,476 412,407 106,283 15,252 475,759 427,659 - - 534,080 534,080 - 10,303,181 12,448,723 10,852,483 9,257,590 21,155,664 21,706,313 836,698 862,299 - - 836,698 862,299 5,049,129 4,865,217 5,049,129 4,865,217 1,456, 770 1,510,800 1,456, 770 1,510,800 623,328 653,878 623,328 653,878 97,149 92,222 97,149 92,222 - - 2,028,807 2,111,162 2,028,807 2,111,162 2,705,251 2,649,245 2,705,251 2,649,245 1,626,740 1,732,030 1,626,740 1,732,030 609,036 609,036 609,036 609,036 534,080 534,080 - 8,597,154 7,984,416 6,969,834 7,101,473 15,566,988 15,085,889 1,706,027 4,464,307 3,882,649 2,156,117 5,588,676 6,620,424 24,566,971 20,102,663 33,482,184 31,326,067 58,049,155 51,428,730 (180,753) (245,308) (426,061) - $26,092,245 $24,566,971 $37,119,525 $33,482,184 $63,211,770 $ 58,049,155 16 Revenue by Source - Government Activities Other 369,476 4% intergovernmen 1,593,100 159 17 Charges for services $642,787 6% Operating grants and contributions 179,095 Capital grants and contributions 1,019,354 10% Property taxes and Expenses and Program Revenues — Governmental Activities el e 5 h 0 10\ J .per at` �� at` Zl' 0 ■ Expenses ■ Revenue • The majority of the City of Chubbuck's governmental activities' revenue is received from property and sales tax (63 percent). This amount would be 59 percent of the revenue received without this fiscal year's capital development contributions. • When all taxes are added together, they make up 72 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 2019. 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 Other 106 283 0.98% Transfers in $534,080 4.92% Capital grants and contributions $1,045,754 9.64% Charges for services $9,166,366 84.46% Expenses and Program Revenue - Business Type Activities $4,500,000 $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 Water Sewer Sanitation Revenue m Expense • One of the major sources of the City of Chubbuck's business -type activities' revenue is received from service revenue (86 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 $766,684. Of which $107,771 of this total is unassigned fund balance (14 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 less than operating expenditures. With the other financing sources and uses, the net change in the general fund decrease $114,210 for fiscal year 2019. As a measure of liquidity, it may be useful to compare both total unassigned fund balance and total fund expenditures. Total Unassigned fund balance represents 1 percent of total general fund expenditures. Proprietary funds. The City of Chubbuck's proprietary fund statements provide the same type of information found in the government -wide financial statements, but in more detail. Unrestricted net positions of the respective proprietary funds are Water: $5,630,368, Sewer: $14,759,547, and Sanitation: $4,500,297. The water fund had an increase in net position of $2,064,249; the sewer fund had an increase in net position of $1,852,840; and the sanitation fund had an increase in net position of $325,549. General Fund Budgetary Highlights The City made no revision to the original appropriations approved by the City Council. The general fund actual revenues were less than budget, and expenses were more than budget. The difference accounts for a $104,210 decrease in the general fund balance. The major variances in expenditures were due to an increase in the law enforcement, building inspection, and capital outlays expenditures. The highway, streets and roads fund actual revenues were more than budget, and expenses were more than budget. The difference accounts for a $1,027,069 decrease in the highway, streets, and roads fund balance. The major variances in expenditures were due to an increase in capital outlays expenditures. 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, 2019 amounts to $64,764,578 (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 $12,862,025. The increase in assets includes development contributions of $1,814,978. 20 Land Building & Improvements Machinery & Equipment Infrastructure Work in Progress CIAWWCA: Land Infrastructure Office Equipment Water Rights Tota I City of Chubbuck's Capital Assets Governmental Activities Business Activities Total 2019 2018 2019 2018 2019 2018 $ 1,944,799 $ 2,244,009 $ 1,505,111 $ 971,031 $ 3,449,910 $ 3,215,040 4,809,820 4,646,825 8,141,147 25,346,563 12,950,967 29,993,388 5,064,036 4,492,833 7,638,055 7,457,671 12,702,091 11,950,504 12,884,771 9,589,192 - - 12,884,771 9,589,192 8,649,391 9,472,152 10,975,468 6,935,270 19,624,859 16,407,422 - - 386,226 386,226 386,226 386,226 18,183,193 - 18,183,193 - - 2,421,167 2,421,167 2,421,167 2,421,167 $ 33,352,817 $ 30,445,011 $ 49,250,367 $ 43,517,928 $ 82,603,184 $ 73,962,939 Additional information on the City of Chubbuck's capital assets can be found in note 9 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 $23,270,803. Of this amount, $11,887,750 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 $924,132 used for purchasing water shares. The State of Idaho mandates a general obligation debt limit of 9% 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 $72,983,130 based on September 30, 2018's actual assessed values. Therefore $72,983,130 is available for future general obligation indebtedness. Additional information on the City of Chubbuck's long-term debt can be found in note 10 of this report. Request for information The financial report is designed to provide our patrons of the City of Chubbuck and creditors with a general overview of the City's finances and to show the City's accountability for the money it receives. If you have question about this report or need any additional financial information, contact the Mayor and City Council at 5602 Yellowstone Ave, Chubbuck, ID 83202, telephone (208)237-2400. 21 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION SEPTEMBER 30, 2019 22 See accompanying notes to financial statements Governmental Business -type Development Activities Activities Total Authority ASSETS Current assets Cash and cash equivalent $ 5,476,986 $ 16,055,273 $ 21,532,259 $ 1,708,247 Investments - 2,004,574 2,004,574 - Property taxes receivable 461,963 - 461,963 30,739 Intergovernmental receivables 365,166 - 365,166 - Interest receivable 13,118 3,868 16,986 - Internal balances due to/from (3,868,590) 3,868,590 - - Prepaid expenses 80,225 - 80,225 - Other accounts receivable 17,978 809,308 827,286 - 2,546,846 22,741,613 25,288,459 1,738,986 Noncurrent assets Restricted assets Bond reserves - 166,100 166,100 - Utility deposits - 389,134 389,134 - Capital assets 33,352,817 49,250,368 82,603,185 1,260,321 Accumulated depreciation (6,879,524) (10,959,083) (17,838,607) - 26,473,293 38,846,519 65,319,812 1,260,321 29,020,139 61,588,132 90,608,271 2,999,307 DEFERRED OUTFLOWS Pension 250,971 123,623 374,594 - LIABILITIES Current liabilities Accounts payable 563,069 817,637 1,380,706 216,940 Accrued payroll 172,117 85,951 258,068 - Accrued bond interest - 3,008 3,008 - Interest payable 3,869 181,984 185,853 - Unearned revenue 261,674 - 261,674 - Current portion compensated absences 76,960 26,848 103,808 - Current portion of bonds payable - 137,355 137,355 - Current portion of long-term debt - 959,212 959,212 300,000 Utility deposits - 389,134 389,134 - 1,077,689 2,601,129 3,678,818 516,940 Noncurrent liabilities Bonds payable - 924,132 924,132 - Note payable - 20,076,209 20,076,209 356,850 Accrued compensated absences 307,841 107,392 415,233 - Net pension liabilities 1,242,965 612,264 1,855,229 - 1,550,806 21,719,997 23,270,803 356,850 2,628,495 24,321,126 26,949,621 873,790 DEFERRED INFLOWS Pension 550,370 271,104 821,474 - NET POSITION Net investment in capital assets 26,473,293 11,876,681 38,349,974 603,471 Restricted - 166,100 166,100 1,270,859 Unrestricted (381,048) 25,076,744 24,695,696 251,187 $ 26,092,245 $ 37,119,525 $ 63,211,770 $ 2,125,517 22 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2019 Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue Transfers in (out) NET CHANGE IN NET POSITION BEGINNING NET POSITION PRIOR PERIOD ADJUSTMENT ENDING NET POSITION $ (6,221,838) $ 3,242,286 $ (2,979,552) $ (1,770,409) 6,499,369 6,499,369 Program Revenues Total 189,494 - 1,403,606 Operating Capital Net 182,445 106,283 288,728 Charges for Grants and Grants and (Expense) Development 186,203 Expenses Services Contributions Contributions Revenue Authority Functions/Programs 7,927,865 640,363 8,568,228 2,803,993 1,706,027 3,882,649 Primary Government: 1,033,584 24,566,971 33,482,184 58,049,155 898,954 Governmental activities: General government $ 836,698 $ 399,415 $ - $ $ (437,283) $ - Law enforcement 3,492,557 34,221 101,830 (3,356,506) - Fire control 1,556,572 176,925 - (1,379,647) - Building inspection 246,220 - - (246,220) - Street 1,210,550 17,468 - 1,019,354 (173,728) - Parks and recreation 623,328 14,758 7,246 - (601,324) - Health and welfare 80,049 - - (80,049) - Other special funds 17,100 70,019 52,919 - 8,063,075 642,787 179,095 1,019,354 (6,221,838) - Business -type activities Water 2,028,807 2,983,977 - 523,563 1,478,733 - Sewer 2,705,251 4,229,957 - 294,191 1,818,897 - Sanitation 1,626,740 1,930,472 - - 303,732 - CIAWWC Authority 609,036 21,960 - 228,000 (359,076) 6,969,834 9,166,366 - 1,045,754 3,242,286 - Total primary government $ 15,032,909 $ 9,809,153 $ 179,095 $ 2,065,108 $ (2,979,552) $ - Component Unit: Chubbuck Development Authority $ 1,802,965 32,556 - - $ (1,770,409) $ 1,802,965 32,556 - $ (1,770,409) General Business -type Development Activities Activities Total Authority Net (expense)/revenue General revenues General property taxes and sales tax Franchise fees Intergovernmental income Interest income Gain from sale of assets Other revenue Transfers in (out) NET CHANGE IN NET POSITION BEGINNING NET POSITION PRIOR PERIOD ADJUSTMENT ENDING NET POSITION $ (6,221,838) $ 3,242,286 $ (2,979,552) $ (1,770,409) 6,499,369 6,499,369 2,786,429 189,494 189,494 - 1,403,606 - 1,403,606 - 182,445 106,283 288,728 16,133 828 - 828 1,001 186,203 - 186,203 430 (534,080) 534,080 - - 7,927,865 640,363 8,568,228 2,803,993 1,706,027 3,882,649 5,588,676 1,033,584 24,566,971 33,482,184 58,049,155 898,954 (180,753) (245,308) (426,061) 192,979 $ 26,092,245 $ 37,119,525 $ 63,211,770 $ 2,125,517 23 See accompanying notes to financial statements ASSETS Cash Accounts receivable Property and sales taxes receivable Intergovernmental receivables Interest receivable Prepaid expense LIABILITIES Accounts payable Accrued payroll Accrued compensated absences Interest Payable Due to other funds DEFERRED INFLOWS OF RESOURCES CITY OF CHUBBUCK, IDAHO BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2019 Highway, Streets, Other General and Roads Governmental Fund Fund Funds Total $ 2,222,835 $ 2,154,503 $ 658,913 $ 5,036,251 3,873 14,105 - 17,978 422,368 39,595 461,963 179,594 185,572 365,166 13,118 - 13,118 80,225 - - 80,225 $ 2,922,013 $ 2,393,775 $ 658,913 $ 5,974,701 $ 118,474 $ 444,595 $ $ 563,069 151,986 20,131 172,117 66,601 10,359 76,960 - 3,869 3,869 - 3,868,590 3,868,590 337,061 4,347,544 4,684,605 Unavailable revenues - taxes 214,625 47,113 261,738 Unavailable revenues - prepaid 10,062 1,612 11,674 Unavailable revenues - grant - 250,000 250,000 future periods and, therefore, are not reported in the fund: 224,687 298,725 - 523,412 FUND BALANCES (550,370) Internal service funds are used to charge the costs of certain activities, such as Committed - - 658,913 658,913 Unassigned 2,360,265 (2,252,494) - 107,771 reported in the funds: 2,360,265 (2,252,494) 658,913 766,684 Net pension liability $ 2,922,013 $ 2,393,775 $ 658,913 $ 26,092,245 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 $6,879,524. 26,473,293 Unavailable revenue represents amounts that were not available to fund current expenditures and therefore are not reported in the funds: Property tax 261,738 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 250,971 Deferred inflows of resources related to pensions (from pension schedule) (550,370) 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. 440,735 Long-term liabilities are not due and payable in the current period and therefore are not reported in the funds: Accrued compensated absences (307,841) Net pension liability (1,242,965) Net position of governmental funds $ 26,092,245 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, 2019 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 Parks guarantee fund Capital outlays EXCESS OF REVENUES OVER (UNDER) EXPENDITURES OTHER FINANCING SOURCES (USES) Interest expense Proceeds from sale of assets NET CHANGE IN FUND BALANCES BEGINNING FUND BALANCE ENDING FUND BALANCE (104,288) (1,023,950) - (3,869) 72 7sn (104,210) (1,027,069) 142,358 (985,880) - (3,869) 828 - (3,041) 142,358 (988,921) 2,464,475 (1,225,425) 516,555 1,755,605 $ 2,360,265 $ (2,252,494) $ 658,913 $ 766,684 (Continued) 25 See accompanying notes to financial statements Highway, Streets, Other General and Roads Governmental Fund Fund Funds Total $ 5,472,164 $ 933,810 $ - $ 6,405,974 189,494 - - 189,494 562,270 841,336 - 1,403,606 34,221 - - 34,221 8,670 - - 8,670 308,615 - - 308,615 76,520 32,556 - 109,076 176,925 - - 176,925 90,800 - - 90,800 162,709 17,166 2,570 182,445 9,025 - 60,994 70,019 6,088 17,468 - 23,556 70,474 17,654 95,894 184,022 7,167,975 1,859,990 159,458 9,187,423 621,568 - - 621,568 3,354,522 - - 3,354,522 1,463,484 - - 1,463,484 244,749 - - 244,749 - 1,054,240 - 1,054,240 530,705 - - 530,705 80,049 - - 80,049 - - 17,100 17,100 977,186 1,829,700 - 2,806,886 7,272,263 2,883,940 17,100 10,173,303 (104,288) (1,023,950) - (3,869) 72 7sn (104,210) (1,027,069) 142,358 (985,880) - (3,869) 828 - (3,041) 142,358 (988,921) 2,464,475 (1,225,425) 516,555 1,755,605 $ 2,360,265 $ (2,252,494) $ 658,913 $ 766,684 (Continued) 25 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, 2019 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 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 Capital asset purchases capitalized Capital assets transferred to other funds Depreciation expense The net affect of sales transactions involving capital assets Unavailable revenues are not recorded as current period receipts 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 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 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 Change in net position W See accompanying notes to financial statements Tnta I $ (988,921) 1,019,354 2,806,886 (534,080) (657,332) 2,634,828 93,395 2,181 (17,073) (18,383) $ 1.706.027 ASSETS Current assets Cash and cash equivalents Accounts receivable Noncurrent assets Restricted assets Bond reserves Utility deposits Advance to joint venture Investments Capital assets Accumulated depreciation Interest receivable Due from other funds DEFERRED OUTFLOWS Pension LIABILITIES Current Liabilities Accounts payable Payroll payable Accrued compensated absences Current portion of bonds payable Accrued bond interest Current portion of long-term debt Accrued note interest Deposits Noncurrent Liabilities Revenue bonds payable, net unamortized premium Advance payable Note payable Compensated absences Net pension liabilities Pension DEFERRED INFLOWS NET POSITION CITY OF CHUBBUCK, IDAHO - - 815,282 166,100 STATEMENTS OF NET POSITION 28,543 25,647 386,284 2,400 PROPRIETARY FUNDS 9,840 389,134 369,499 27,225 SEPTEMBER 30, 2019 - 16,879,253 - 132,355 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2018 17,127,318 - 3,008 2,004,574 - - Internal Internal - - - Service Service Water Sewer Sanitation CIAWWCA Total 2018 Funds 2019 Funds 2018 269,103 (3,046,958) (3,432,672) (1,803,223) (2,424,425) $ 4,183,456 $ 7,024,214 $4,658,716 $ $15,866,386 $ 16,271,556 $ 629,622 $ 626,505 328,230 322,132 158,946 809,308 780,214 3,868 4,000 4,511,686 7,346,346 4,817,662 16,675,694 17,051,770 629,622 626,505 166,100 - - 815,282 166,100 164,850 28,543 25,647 386,284 2,400 450 9,840 389,134 369,499 27,225 137,355 - 16,879,253 - 132,355 16,879,253 17,127,318 - 3,008 2,004,574 - - 86,504 2,004,574 - - - 21,788,325 5,391,673 3,239,866 18,569,419 48,989,283 43,248,825 261,085 269,103 (3,046,958) (3,432,672) (1,803,223) (2,424,425) (10,707,278) (9,698,142) (251,805) (257,250) 3,868 3,868 4,000 - 3,868,590 3,868,590 4,000,000 21,298,325 22,713,112 1,437,093 16,144,994 61,593,524 55,216,350 9,280 11,853 25,810,011 30,059,458 6,254,755 16,144,994 78,269,218 72,268,120 638,902 638,358 45,299 41,450 36,874 - 123,623 164,581 499,253 265,731 50,298 815,282 2,094,374 2,355 3,080 31,761 28,543 25,647 85,951 82,704 - - 14,463 9,840 2,545 26,848 27,225 137,355 - - 137,355 132,355 3,008 - - 3,008 3,321 20,163 852,545 86,504 959,212 955,601 179,903 - 2,081 181,984 38,120 386,284 2,400 450 389,134 369,499 1,272,190 1,159,059 167,525 2,598,774 3,703,199 2,355 3,080 924,132 - 924,132 1,061,488 - - - 16,879,253 16,879,253 17,127,318 7,510,545 11,887,750 677,914 - 20,076,209 16,231,066 57,850 39,362 10,180 107,392 108,903 224,351 205,289 182,624 612,264 782,218 8,716,878 12,132,401 870,718 16,879,253 38,599,250 35,310,993 9,989,068 13,291,460 1,038,243 16,879,253 41,198,024 39,014,192 2,355 3,080 99,340 90,900 80,864 - 271,104 133,050 Net investment in capital assets 9,970,434 1,959,001 672,225 (734,259) 11,867,401 11,601,126 9,280 11,853 Restricted for bond service 166,100 - - 166,100 164,850 - - Unrestricted 5,630,368 14,759,547 4,500,297 24,890,212 21,519,483 627,267 623,425 $ 15,766,902 $16,718,548 $5,172,522 _L( 36,923,713 $ 33,285,459 $ 636,547 $ 635,278 Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities. 195,812 $ 37,119,525 27 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, 2019 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2018 NONOPERATING REVENUE (EXPENSE) Interest income 31,606 30,074 21,817 83,497 Internal Internal 18,917 - - 18,917 - - Service Service 3,869 Water Sewer Sanitation CIAWWCA Total 2018 Funds 2019 Funds 2018 OPERATING REVENUES (60,677) (64,745) Note interest expense (4,824) Service revenue $ 1,922,490 $ 4,229,957 $ 1,930,472 $ 21,960 $ 8,104,879 $ 7,597,215 $ 73,931 $ 242,989 Revenue used as security 228,000 Gain (Loss) from asset disposal - - - for revenue bond: Transfers in (out) 534,080 534,080 Charges for services 1,061,487 547,597 33,943 (6,678) 1,061,487 1,193,843 - - CAPITAL CONTRIBUTIONS 2,983,977 4,229,957 1,930,472 21,960 9,166,366 8,791,058 73,931 242,989 OPERATING EXPENSES 294,191 817,754 93,730 523,563 Salaries and wages 752,468 672,537 612,075 - 2,037,080 1,903,606 - - Personnel benefits 259,038 223,111 220,848 1,269 (156,887) 702,997 701,440 5,600 6,237 Repairs and maintenance 418,002 134,229 427,969 PRIOR PERIOD ADJUSTMENT 980,200 1,055,387 12,411 8,891 Supplies and tools 62,971 4,576 62,728 $ 15,766,902 130,275 120,464 4,668 9,136 Travel, meetings, and training 13,889 8,061 6,645 28,595 20,511 4,240 3,005 Fuels and lubricants 17,534 4,525 59,061 81,120 66,470 33,352 33,974 Telephone and communications 6,273 5,078 5,078 16,429 18,382 - - Utilities 159,079 31,251 3,279 193,609 211,440 12,936 13,283 Treatment - Pocatello - 1,467,281 - - 1,467,281 1,496,762 - - Other purchased services 20,005 - 41,624 2,930 64,559 56,743 - Professional services 34,192 39,774 19,879 - 93,845 101,115 322,778 Bad debt 1,271 1,077 666 - 3,014 9,945 - Depreciation 246,166 113,751 138,393 606,106 1,104,416 1,093,318 2,572 2,572 1,990,888 2,705,251 1,598,245 609,036 6,903,420 6,855,583 75,779 399,876 OPERATING INCOME 993,089 1,524,706 332,227 (587,076) 2,262,946 1,935,475 (1,848) (156,887) NONOPERATING REVENUE (EXPENSE) Interest income 31,606 30,074 21,817 83,497 3,117 Investment income 18,917 - - 18,917 - - Note interest income - 3,869 3,869 4,000 Bond interest expense (32,182) - (28,495) (60,677) (64,745) Note interest expense (4,824) - (4,824) (7,214) Grant revenue 228,000 228,000 228,000 Gain (Loss) from asset disposal - - - 11,252 Transfers in (out) 534,080 534,080 547,597 33,943 (6,678) 228,000 802,862 171,293 3,117 CAPITAL CONTRIBUTIONS Developer contributions 523,563 294,191 817,754 93,730 523,563 294,191 817,754 93,730 CHANGES IN NET POSITION 2,064,249 1,852,840 325,549 (359,076) 3,883,562 2,200,498 1,269 (156,887) BEGINNING NET POSITION 13,825,307 14,988,362 4,846,973 (375,183) 33,285,459 31,084,961 635,278 792,165 PRIOR PERIOD ADJUSTMENT (122,654) (122,654) (245,308) ENDING NET POSITION $ 15,766,902 $16,718,548 $ 5,172,522 $(734,259) $36,923,713 $ 33,285,459 $ 636,547 $ 635,278 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (913) Change in net position of business -type activities $ 3,882,649 28 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2018 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 NONCAPITAL FINANCING ACTIVITIES Transfer from (to) other funds Net change in interfund loans Proceeds from grants Change in reporting restricted cash Miscellaneous expenditure Net cash (used) in noncapital financing activities CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES Principal paid on capital debt Interest paid on capital debt Proceeds from debt Gain from asset disposals Contributed capital Purchase of capital assets Interest received Net cash provided (used) in capital and related financing activities CASH FLOW FROM INVESTING ACTIVITIES Cash in investments Interest from investment Net cash provided by 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 (140,093) (1,030,371) (210,880) (1,381,344) (4,081,939) (2,004,574) - - - (2,004,574) - - - 18,917 18,917 (1,985,657) (1,985,657) (1,617,962) 961,429 273,283 (1,035) (384,285) (3,029,934) 3,117 (231,723) 6,353,802 6,065,185 4,385,883 1,035 16,805,905 19,835,839 626,505 858,228 $ 4,735,840 $ 7,026,614 $ 4,659,166 $ $ 16,421,620 $ 16,805,905 $ 629,622 $ 626,505 $ 4,183,456 $ 7,024,214 $ 4,658,716 $ $ 15,866,386 $ 16,271,556 $ 626,622 $ 626,505 552,384 2,400 450 555,234 534,349 $ 4,735,840 $ 7,026,614 $ 4,659,166 $ $ 16,421,620 $ 16,805,905 $ 626,622 $ 626,505 29 See accompanying notes to financial statements Internal Internal Service Service Water Sewer Sanitation CIAWWCA Total 2018 Funds 2019 Funds 2018 $ 2,985,221 $ 4,204,630 $ 1,922,446 $ 21,960 $ 9,134,257 $ 8,778,162 $ 77,048 $ 242,989 (2,017,526) (1,701,933) (612,616) (2,930) (4,335,005) (1,456,117) (68,331) (468,474) (1,013,373) (890,522) (825,767) (2,729,662) (2,531,352) (5,600) (6,238) (45,678) 1,612,175 484,063 19,030 2,069,590 4,790,693 3,117 (231,723) 534,080 - - 534,080 - - - 379,475 (248,065) 131,410 (4,000,000) - - - 228,000 228,000 228,000 - - 19,386 150 100 19,636 33,312 553,466 379,625 100 (20,065) 913,126 (3,738,688) (152,675) (852,546) (83,218) (1,088,439) (1,084,008) (37,319) (28,639) (65,958) (38,769) 4,804,837 - - - 4,804,837 2,583,149 - - - - - 11,252 - - - - - - - 93,730 (4,786,542) (211,900) (120,840) (5,119,282) (5,647,293) 31,606 34,075 21,817 87,498 (140,093) (1,030,371) (210,880) (1,381,344) (4,081,939) (2,004,574) - - - (2,004,574) - - - 18,917 18,917 (1,985,657) (1,985,657) (1,617,962) 961,429 273,283 (1,035) (384,285) (3,029,934) 3,117 (231,723) 6,353,802 6,065,185 4,385,883 1,035 16,805,905 19,835,839 626,505 858,228 $ 4,735,840 $ 7,026,614 $ 4,659,166 $ $ 16,421,620 $ 16,805,905 $ 629,622 $ 626,505 $ 4,183,456 $ 7,024,214 $ 4,658,716 $ $ 15,866,386 $ 16,271,556 $ 626,622 $ 626,505 552,384 2,400 450 555,234 534,349 $ 4,735,840 $ 7,026,614 $ 4,659,166 $ $ 16,421,620 $ 16,805,905 $ 626,622 $ 626,505 29 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2018 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 30 See accompanying notes to financial statements Internal Internal Service Service Water Sewer Sanitation CIAWWCA Total 2018 Funds 2019 Funds 2018 OPERATING INCOME $ 993,089 $ 1,524,706 $ 332,227 $ (587,076) $ 2,262,946 $ 1,935,475 $ 1,269 $ (156,888) RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES Depreciation 246,166 113,751 138,393 606,106 1,104,416 1,093,318 2,572 2,571 Pension expense 3,317 3,037 2,702 - 9,056 50,638 - - Bad debt expense 1,271 1,077 666 3,014 9,945 (Increase) decrease in assets Accounts receivable 1,244 (25,326) (8,026) (32,108) (85,053) Increase (decrease) in liabilities Accounts payable (1,285,581) (7,158) 13,647 - (1,279,092) 1,691,157 (77,406) (77,406) Payroll payable 298 718 2,230 3,246 8,584 Accrued compensated absences (5,482) 1,370 2,224 (1,888) 14,472 Total adjustments (1,038,767) 87,469 151,836 606,106 (193,356) 2,855,218 (74,834) (74,835) NET CASH PROVIDED BY OPERATING ACTIVITIES $ (45,678) $ 1,612,175 $ 484,063 $ 19,030 $ 2,069,590 $ 4,790,693 $ (73,565) $ (231,723) 30 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENT OF NET POSITION FIDUCIARY FUNDS SEPTEMBER 30, 2019 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2018 Recreation 31 See accompanying notes to financial statements Programs Health Plan Trust Fund Trust Fund 2019 2019 Total 2018 Assets Cash $ 47,461 $ 352,315 $ 399,776 $ 422,520 On deposit with third party administrator - 50,000 50,000 50,000 Prepaid expenses - 26,792 26,792 7,918 Stop loss receivable - 79,514 79,514 Contributions receivable - - - 90 47,461 508,621 556,082 480,528 Liabilities Accounts payable 1,604 77,894 79,498 17,034 Health claims incurred but not reported - 96,250 96,250 72,201 Unearned contributions - 85,917 85,917 74,279 1,604 260,061 261,665 163,514 Net Position Held in trust $ 45,857 $ 248,560 $ 294,417 $ 317,014 31 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION FIDUCIARY FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2018 Additions Contributions COBRA contributions Registration fees Sponsorships Other revenue Total additions Deductions Stop -loss coverage Taxes Brokerfees Professional service fees Continuation fees Change in incurred but not reported Bonded insurance expense Immunization Claims administration/TPA fees Claims incurred Director's compensation Boy's baseball Girl's softball Tee/tiger ball Other expenses Total deductions Change in net position Net position - beginning of the year Net position - end of the year Recreation Programs Health Plan Trust Fund Trust Fund nnAn nnAn T-l n^A e $ - $ 1,023,925 $ 1,023,925 $ 1,063,768 - 721 721 901 54,198 - 54,198 60,390 10,485 - 10,485 10,024 - 160,669 160,669 - 64,683 1,185,315 1,249,998 1,135,083 - 301,653 301,653 275,614 - 921 921 986 - 24,080 24,080 20,716 - 22,502 22,502 16,895 - 500 500 1,000 - 24,049 24,049 - - - 295 - 6,794 6,794 5,645 - 70,000 70,000 58,471 - 762,429 762,429 407,546 5,500 - 5,500 5,500 26,764 - 26,764 45,816 18,246 - 18,246 33,260 7,465 - 7,465 12,220 1,692 - 1,692 4,676 59,667 1,212,928 1,272,595 888,640 5,016 (27,613) (22,597) 246,443 40,841 276,173 317,014 70,571 $ 45,857 $ 248,560 $ 294,417 $ 317,014 32 See accompanying notes to financial statements CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 15) NOTE 1 - Summary of Sianificant Accountina Policies The City's financial statements comply with generally accepted accounting principles (GAAP). GAAP includes all relevant Governmental Accounting Standards Board (GASB) pronouncements within the codification. The government -wide financial statements, including the enterprise funds and the fund financial statements for the proprietary funds, are also under GASB codification. The accounting and reporting framework and the more significant accounting policies are discussed in subsequent subsections of this note. Applicable GASB statements have been implemented through GASB 77. A. Reporting Entity The City's financial reporting entity comprises the following Primary Government In determining the financial reporting entity, the City complies with the provisions of GASB Statement No. 61, "The Financial Reporting Entity". Currently, the City reports two component 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 $16,879,253. The City of Chubbuck has all rights and obligations of assets and liabilities within the Authority. Upon termination of this Agreement, title to all buildings, improvements, facilities, equipment and personal property held by the Authority shall vest in the City of Chubbuck. Complete financial statements of the Authority can be obtained from the Treasury, City of Chubbuck, 5160 Yellowstone Ave, Chubbuck, Idaho 83202. B. Basis of Presentation Government -wide Statements The Statement of Net Position and Statement of Activities display information about the reporting government as a whole. They include all funds of the reporting entity except for fiduciary funds. The statements distinguish between governmental and business - 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 15) NOTE 1 - Summary of Significant Accounting 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 expenditure/expenses. Funds are organized into three major categories: Governmental, proprietary, and fiduciary. An emphasis is placed on major funds within the governmental and proprietary categories. A fund is considered major if it is the primary operating fund of the City or meets the following criteria: a. Total assets, liabilities, revenues or expenditures/expenses of that individual governmental or enterprise fund are at least 10 percent of the corresponding total for all funds of that category or type. b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund or enterprise fund are at least 5 percent of the corresponding total for all governmental and enterprise funds combined. Governmental Funds General Fund The General Fund is the general operating fund of the City and is always classified as a major fund. All financial resources, except those required to be accounted for in another fund, are accounted for in the General Fund. Highway, Streets, and Roads Fund The Highway, Streets, and Roads Fund accounts for revenue and expenditures used for the construction and maintenance of the highways, streets, and roads. It is a major fund. Special Revenue Funds Special Revenue Funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specific purposes. Proprietary Funds Enterprise Funds Enterprise funds are used to account for business -like activities provided to the general public. These activities are financed primarily by user charges and the measurement of financial activity focuses on net income measurement similar to the private sector. The reporting entity includes the water, sewer and sanitation funds. 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. Employee Wellness The City encourages its employees to live a healthy lifestyle. The idea is that if we have healthy employees the health insurance medical claims will go down. The Employee Wellness Fund assists with costs like immunization, health screening, and weight loss. 34 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 15) NOTE 1 - Summary of Significant Accounting Policies (Continued) B. Basis of Presentation (continued) Fiduciary 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 end of the period. b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as net position. Basis of Accounting In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -like activities are presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange and exchange -like transactions are recognized when the exchange takes place. In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest which are reported when due. All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred or economic asset used. The effect of interfund activity has been eliminated from the government -wide financial statements 35 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 15) NOTE 1 - Summary of Significant Accounting Policies (Continued) 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. E. Cash and Cash Equivalents For the purpose of the Statement of Net Position, "cash and cash equivalents" includes all 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 $25,000 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 20-30 years Other structures 15-20 years Equipment 7-10 years Vehicles 5-7 years Fund Financial Statements 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 15) NOTE 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. All long-term debt to be repaid from governmental and business -type resources are reported as liabilities in the government -wide statements. The long-term debt consists primarily of notes payable, capital leases, and accrued compensated absences. Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. Debt proceeds are reported as other financing sources. Payment of principal and interest are reported as expenditures. The accounting for proprietary funds is the same in the fund statements as it is in the government -wide statements. 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 6 OF 15) 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 these funds for a designated purpose. Unassigned items - Represents the remainder of the City's equity in governmental fund -type balances in excess of the aforementioned classifications. It is the City's policy to use unrestricted fund balances in the following order: (1) Committed, (2) Assigned, (3) Unassigned. L. Use of Estimates The preparation of financial statements in conformity with generally accepted accounting principles requires the City to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. M. Pensions For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiduciary net position have been determined on the same basis as they are reported by the Base Plan. 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 $ 166,100 389,134 $ 555,234 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 $389,134 at year-end. 38 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 15) 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, $461,963 in outstanding property taxes were expected to be collected and remitted by the County. NOTE 5 - Tax Abatements The City has no tax abatement agreement as of September 30, 2019. NOTE 6 - Cash and Cash Equivalents and Investments Primary Government: Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Balance Restricted $ 555,234 Unrestricted 21,532,259 $ 22,087,493 Fiduciary Fund: Balance Cash $ 399,776 $ 399,776 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 $22,487,269 and the bank balance was $18,593,469. 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 $4,890,582. 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 As of September 30, 2019, the City had the following investments: Maturities More Than Fair Value No Maturity 1-10 Years 10 Years Moody / S&P Money Funds $ 9,335 $ 9,335 $ - $ N/A U.S. Government Bonds 2,004,574 - 2,004,574 Aaa / AA+ Total Investments $ 2,013,909 $ 9,335 $ 2,004,574 $ The above investments are measured at fair market value based on the exit price for these investments at the fiscal year end date. These are all considered to be measured on a Level 1 on the fair market value hierarchy. Component Unit - Chubbuck Development Authority (CDA): Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted $ 1,708,247 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 $1,708,247. 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 39 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 15) NOTE 6 - Cash and Cash Equivalents and Investments (Continued) Component Unit - Chubbuck Impact Area Waste Water Collection Authority (CIAWWCA): Deposits and Investments - The CIAWWCA has no deposits or investments. Deposits at year end consist of the following: Deposits Cash in bank - carrying amount Unrestricted $ Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be returned to it. At year-end the carrying amount and bank balance of CIAWWCA's deposits (cash and certificates of deposit) was $0. At year-end, all the Authority's deposits were held in a financial institution. All deposits were guaranteed by the Federal Deposit Insurance Corporation and were not subject to custodial credit risk. NOTE 7 - Receivables All trade receivables are shown net of allowance for doubtful accounts. Doubtful accounts are based on an aging delinquent balance report. Historically 100% of property taxes have been collected, therefore, there is no allowance for uncollectible property 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 penalty. Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. 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 - Changes in Capital Assets A summary of general capital assets at year end is as follows Beginning CIAWWC Water Sewer Sanitation Authority Total Accounts Receivables $ 360,514 $ 343,661 $ 168,102 $ $ 872,277 Allowance for Doubtful Accounts (32,284) (21,529) (9,156) (62,969) $ 328,230 $ 322,132 $ 158,946 $ $ 809,308 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 penalty. Credit Risk is the risk that an issuer or a counterparty to a deposit will not fulfill its obligations. The City seeks to minimize credit risk through diversification of deposits within the choices allowed under state statutes. 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 - Changes 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 $ 2,244,009 $ 234,870 $ 534,080 $ 1,944,799 Work in process 9,472,152 2,127,574 2,950,335 8,649,391 Infrastructures 9,589,192 3,295,579 - 12,884,771 Buildings and Improvements 4,646,825 162,995 - 4,809,820 Vehicles and Equipment 4,492,833 774,804 203,601 5,064,036 30,445,011 6,595,822 3,688,016 33,352,817 Accumulated Depreciation 6,425,793 657,332 203,601 6,879,524 $ 24,019,218 $ 5,938,490 $ 3,484,415 $ 26,473,293 40 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 15) NOTE 9 - Changes in Capital Assets (Continued) A summary of proprietary type capital assets at year end is as follows: Nondepreciable assets Land Water Rights Work in process Buildings and Improvements Vehicles and Equipment Accumulated Depreciation NOTE 10 - Long-term Debt and Accrued Compensation Accrued Compensated Absences: Current portion Noncurrent portion Long-term Debt: Beginning Ending Balance Additions Deletions Balance $ 1,357,257 $ 534,080 $ $ 1,891,337 2,421,167 - 2,421,167 6,935,270 4,470,664 430,466 10,975,468 25,329,446 1,002,912 8,018 26,324,340 7,474,788 258,547 95,280 7,638,055 43,517,928 6,266,203 533,764 49,250,367 9,955,392 1,106,988 103,297 10,959,083 $ 33,562,536 $ 5,159,215 $ 430,467 $ 38,291,284 Governmental Business -type $ 76,960 $ 26,848 307,841 107,392 $ 384,801 $ 134,240 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 $ 20,163 Noncurrent portion 7,510,545 $ 7,530,708 At year-end the City was authorized, on 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. Outstanding DEQ line of credit at zero percent interest, with biannual payment of $5,499 for 20 years, and a maturity date of November 1, 2030. Loan closed April 22, 2010. $ 126,586 DEQ line of credit at zero percent interest, with biannual payment of $204,750 for 20 years, and a maturity date of April 27, 2035. Loan closed March 5, 2015. 6,552,006 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. 5,957,199 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. 104,504 $ 12,740,295 Less current portion 852,545 Noncurrent portion $ 11,887,750 41 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 15) NOTE 10 - Long-term Debt and Accrued Compensation (Continued) 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 not closed at the end of fiscal year 2019. Available Principal $ 1,112,654 $ 7,387,346 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 Net Premium Principal Total $ 51,487 $ 1,010,000 $ 1,061,487 51,487 1,010,000 1,061,487 7,355 130,000 137,355 $ 44,132 —L --I!80 ,000 —L --L24 ,132 Bond premiums, net amortization totaled $51,487. 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 6, 2013. Note 2 was prematurely paid off on June 25, 2015. Notes Payable: Note 1 Note 2 Note 3 Less current portion Noncurrent portion Interfund Transfers and Due To/Due From Balance 764,418 764,418 86,504 $ 677,914 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 Due to Due to Highway, Streets, and Roads $ 3,868,590 $ - Sewer Enterprise Fund - 3,868,590 $ 3,868,590 $ 3,868,590 Annual Debt Service Requirements for leases, bonds and notes payable Year Ending Governmental Activities Business -type Activities September 30 Principal Interest Principal Interest 2020 $ $ $ 9,006,354 $ 65,593 2021 - 1,168,414 57,943 2022 - 1,177,861 50,013 2023 - 1,187,453 41,796 2024 - 270,544 33,288 2025-2029 - 5,213,336 37,299 2030-2034 - 3,579,288 - 2035 - 442,171 - $ - $ $ 22,045,421 $ 285,932 42 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 15) NOTE 10 - Long-term Debt and Accrued Compensation (Continued) Changes in long-term liabilities Long-term liability activity for the year was as follows NOTE 11- Stewardship, Compliance and Accountability A. Deficit Fund Balance At September 30, 2019, the City had a deficit fund balance in the amount of $2,252,494 in the Highway, Streets, and Roads fund. NOTE 12- Pension Plan Plan Description: The City contributes to the Base Plan which is a cost-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 five 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 police/firefighters) 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 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. 43 Beginning Ending Due within Balance Additions Reductions Balance one year Governmental activities Compensated absences $ 363,460 $ 503,850 $ 482,509 $ 384,801 $ 76,960 $ 363,460 $ 503,850 $ 482,509 $ 384,801 $ 76,960 Long-term portion $ 307,841 Beginning Ending Due within Balance Additions Reductions Balance one year Business -type activities Bonds payable $ 1,135,000 $ - $ 125,000 $ 1,010,000 $ 130,000 Notes payable 17,186,667 4,804,197 955,443 21,035,421 959,212 Compensated absences 136,128 179,468 181,356 134,240 26,848 $ 18,457,795 $ 4,983,665 $ 1,261,799 $ 22,179,661 $ 1,116,060 Long-term portion $21,063,601 NOTE 11- Stewardship, Compliance and Accountability A. Deficit Fund Balance At September 30, 2019, the City had a deficit fund balance in the amount of $2,252,494 in the Highway, Streets, and Roads fund. NOTE 12- Pension Plan Plan Description: The City contributes to the Base Plan which is a cost-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 five 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 police/firefighters) 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 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. 43 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 15) NOTE 12 - Pension Plan (Continued) Member and Employer Contributions: 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, 2019 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 $624,883 for the year ended September 30, 2019. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions: At September 30,2019, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019, 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, 2019, the City's proportion was .1625296 percent. For the year ended September 30, 2019, the City recognized pension expense (revenue) of $629,569. At September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $ 172,415 $ 218,648 Changes in assumptions or other inputs 103,198 - Net difference between projected and actual earnings on pension plan investments 632,023 Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions (55,421) (29,197) City contributions subsequent to the measurement date 154,403 - $ 374,595 $ 821,474 $154,403 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, 2019. 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, 2018 the beginning of the measurement period ended June 30, 2019 is 4.8 and 4.8 for the measurement period June 30, 2019. 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, 2019 2020 $ (66,805) 2021 (286,211) 2022 (139,418) 2023 (108,847) 2024 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. 44 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 15) NOTE 12 - Pension Plan (Continued) Actuarial Assumptions: The total pension liability in the June 30, 2019 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.00% Salary increases 3.75% Salary inflation 3.75% Investment rate of return 7.05%, 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, 2013 through June 30, 2017 which reviewed all economic and demographic assumptions including mortality. The Total Pension Liability as of June 30, 2019 is based on the results of an actuarial valuation date July 1,2019. 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 inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real 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, 2018. Asset Class Core Fixed Income Broad US 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 Valuation Assumptions Chosen by PERSI Board Long -Term Expected Real Rate of Return, Net of Investment Expenses Assumed Inflation Long -Term Expected Geometric Rate of Return, Net of Investment Expenses 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% 4.05% 3.00% 7.05% CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 15) NOTE 12 - Pension Plan (Continued) 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 7.05 percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (6.05 percent) or 1 -percentage -point higher (8.05 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.05%) (7.05%) (8.05%) Employer's proportionate share of the net pension liability (asset) $ 5,603,510 $ 1,855,229 $ (1,244,478) 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, 2019, the City reported payables to the defined benefit pension plan of $25,201 for legally required employer contributions and $16,273 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 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 27, 2020, the date the financial statements were available to be issued. In 2020, the City approved the issuance of certificates of participation in approximately the amount of $15.3 million dollars. The funds will be used for building a new city hall, renovating the existing city hall and police department as a new police station, and developing a new animal control building. 46 CITY OF CHUBBUCK, IDAHO NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 15) NOTE 15 - Other Postemplovment 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 (OPEB). NOTE 16 - Prior Period Adjustments Adjustments Governmental Activities During the year, the City became aware of assets that were capitalized in the prior year but were not to be recognized in accordance with the City's capitalization policy. The removal of the assets decreased the statement of net position and statement of activities within the governmental activities by $180,753. Adjustments Business -type Activities During the year, the City became aware of assets that were capitalized in the prior year but were not to be recognized in accordance with the City's capitalization policy. The removal of the assets decreased the statement of net position and statement of activities within the business -type activities by $245,308. 47 REQUIRED SUPPLEMENTARY INFORMATION EN CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE GENERAL FUND YEAR ENDED SEPTEMBER 30, 2019 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 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) $ 5,522,338 $ 5,522,338 $ 5,472,164 $ (50,174) 208,680 208,680 189,494 (19,186) 547,000 547,000 596,491 49,491 12,275 12,275 8,670 (3,605) 239,848 239,848 308,615 68,767 41,000 41,000 76,520 35,520 226,743 226,743 176,925 (49,818) 82,500 82,500 90,800 8,300 202,387 202,387 162,709 (39,678) 7,825 7,825 9,025 1,200 162,000 162,000 6,088 (155,912) 11,500 11,500 70,474 58,974 7,264,096 7,264,096 7,167,975 (96,121) 1,440,947 1,440,947 621,568 819,379 3,304,779 3,304,779 3,354,522 (49,743) 1,551,584 1,551,584 1,463,484 88,100 230,930 230,930 244,749 (13,819) 652,650 652,650 530,705 121,945 83,206 83,206 80,049 3,157 - - 977,186 (977,186) 7,264,096 7,264,096 7,272,263 (8,167) (104,288) (104,288) - 78 78 - 78 78 (104,210) (104,210) BEGINNING FUND BALANCE - - 2,464,475 2,464,475 ENDING FUND BALANCE $ - $ - $ 2,360,265 $ 2,360,265 49 CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE HIGHWAY, STREETS AND ROADS YEAR ENDED SEPTEMBER 30, 2019 Resources Property taxes Highway user's revenue Grant revenue Road and bridge Other revenues 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 Miscellaneous expenses 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 Original Final $ 771,658 $ 771,658 665,000 665,000 180,000 180,000 110,622 110,622 1,727,280 1,727,280 753,000 753,000 13,500 13,500 9,250 9,250 12,500 12,500 25,000 25,000 141,500 141,500 547,500 547,500 80,000 80,000 120,030 120,030 25,000 25,000 1,727,280 1,727,280 Variance Actual Positive Amounts (Negative) $ 933,810 $ 162,152 719,995 54,995 32,556 32,556 121,341 (58,659) 52,288 (58,334) 1,859,990 132,710 616,036 136,964 15,799 (2,299) 8,505 745 9,547 2,953 51,295 (26,295) 162,871 (21,371) 123,810 423,690 64,688 15,312 1,829,700 (1,709,670) 1,689 23,311 2,883,940 (1,156,660) (1,023,950) (1,023,950) (3,869) (3,869) 750 750 (1,027,069) (1,027,069) BEGINNING FUND BALANCE - - (1,225,425) (1,225,425) ENDING FUND BALANCE $ - - $(2,252,494) $(2,252,495) 50 Schedule of Employer's Share of Net Pension Liability 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 for which information is available Data reported is measured as of June 30, 2019 51 2019 2018 2017 2016 2015 Employer's portion of the net pension liability 0.001625296 0.001606905 0.001542148 0.00145924 0.001459012 Employer's proportionate share of the net pension liability $ 1,855,230 $ 2,370,213 $ 2,423,992 $ 2,958,104 $ 1,921,281 Employer's covered -employee payroll $ 5,496,835 $ 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 33.75% 46.09% 50.88% 70.01% 47.18% Plan fiduciary net position as a percentage of the total pension liability 93.79% 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, 2019 51 Schedule of Employer Contributions PERSI — Base Plan Last 10 — Fiscal Years' 2019 2018 2017 2016 2015 Statutorily required contribution $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contributions in relation to the statutorily required contribution $ 643,275 $ 594,166 $ 545,551 $ 503,931 $ 469,058 Contribution (deficiency) excess $ - $ - $ - $ - $ - Employer's covered -employee payroll $ 5,597,869 $ 5,318,395 $ 4,568,504 $ 4,536,572 $ 4,225,217 Contributions as a percentage of covered -employee payroll 11.49% 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 for which information is available. Data is reported as a measurement of September 30, 2019. 6% 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 GENERAL FUND Law Enforcement The City had expenditures in excess of budget of $49,743 due to an increase in law enforcement personnel, administration and supplies, communications, and maintenance expenditures. Law enforcement did contribute $30,000 in grants and $11,825 in other revenues for a total of $41,825. The general fund actual expenditures exceeded the budgeted expenditures by $8,167. The total general fund budgeted expenditures exceeded budgeted revenue by $104,288. The City used available fund balances to cover the budget deficit. Building Inspection The City had expenditures in excess of budget of $13,819 due to an increase in Building Inspection personnel, supplies, and maintenance expenditures. The general fund actual expenditures exceeded the budgeted expenditures by $8,167. The total general fund budgeted expenditures exceeded budgeted revenue by $104,288. The City used available fund balances to cover the budget deficit. Capital Outlays The City had expenditures in excess of budget of $977,186 due to an increase in equipment expenditures. The general fund actual expenditures exceeded the budgeted expenditures by $8,167. The total general fund budgeted expenditures exceeded budgeted revenue by $104,288. The City used available fund balances to cover the budget deficit. Highway, Streets, and Roads The City had expenditures in excess of budget of $1,156,659 due to the increase in capital outlays. The majority of expenditures were in Siphon Road Interchange construction. The actual expenditures exceeded the budgeted expenditures by $1,156,659. The total budgeted expenditures exceeded budgeted revenue by $1,023,949. The City used an intergovernmental loan to cover the budget deficit. 53 OTHER SUPPLEMENTARY INFORMATION 54 CITY OF CHUBBUCK, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2019 Special Revenue Law Street Juvenile Road Total Fire Control Enforcement Park Guarantee Referral Court Projects Parks Nonmajor Impact Fees Impact Fees Impact Fees Fund Fund Fund Fund Fund Funds ASSETS Cash $ 12,499 $ 12,388 $ 13,424 $ 11,069 $ 5,084 $ 87,505 $ 168,604 $ 348,340 $ 658,913 FUND BALANCES Committed, reported in: Special revenue fund $ 12,499 $ 12,388 $ 13,424 $ 11,069 $ 5,084 $ 87,505 $ 168,604 $ 348,340 $ 658,913 55 CITY OF CHUBBUCK, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019 56 Special Revenue Law Street Juvenile Road Total Fire Control Enforcement Park Guarantee Referral Court Projects Parks Nonmajor Impact Fees Impact Fees Impact Fees Fund Fund Fund Fund Fund Funds REVENUES Interest income $ $ $ $ 55 $ 25 $ 411 $ 835 $ 1,244 $ 2,570 Donations - - - - 60,994 60,994 Other revenues 12,499 12,388 13,424 - 4,461 53,122 95,894 12,499 12,388 13,424 55 25 4,872 835 115,360 159,458 EXPENDITURES Other purchased services - 17,100 17,100 17,100 17,100 NET CHANGE IN FUND BALANCES 12,499 12,388 13,424 55 25 4,872 835 98,260 142,358 BEGINNING FUND BALANCE - 11,014 5,059 82,633 167,769 250,080 516,555 ENDING FUND BALANCE $ 12,499 $ 12,388 $ 13,424 $ 11,069 $ 5,084 $ 87,505 $ 168,604 $ 348,340 $ 658,913 56 Noncurrent Liabilities 2,355 - 2,355 3,080 NET POSITION Net investment in capital assets 9,280 - 9,280 11,853 Unrestricted (2,355) 629,622 627,267 623,425 $ 6,925 $ 629,622 $ 636,547 $ 635,278 57 CITY OF CHUBBUCK, IDAHO STATEMENTS OF NET POSITION INTERNAL SERVICE FUNDS SEPTEMBER 30, 2019 WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2018 Employee Central Health Garage Insurance 2019 2018 Fund Fund Totals Totals ASSETS Current assets Cash and cash equivalents $ - $ 629,622 $ 629,622 $ 626,505 - 629,622 629,622 626,505 Noncurrent assets Restricted assets Capital assets 261,085 - 261,085 269,103 Accumulated depreciation (251,805) - (251,805) (257,250) 9,280 - 9,280 11,853 9,280 629,622 638,902 638,358 LIABILITIES Current Liabilities Accounts payable 2,355 - 2,355 3,080 2,355 - 2,355 3,080 Noncurrent Liabilities 2,355 - 2,355 3,080 NET POSITION Net investment in capital assets 9,280 - 9,280 11,853 Unrestricted (2,355) 629,622 627,267 623,425 $ 6,925 $ 629,622 $ 636,547 $ 635,278 57 CITY OF CHUBBUCK, IDAHO STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2018 OPERATING EXPENSES Personnel benefits Employee - 5,600 Central Health 12,411 - Garage Insurance 2019 2018 Fund Fund Totals Totals OPERATING REVENUES - 4,240 3,005 Interest earnings $ - $ 3,117 $ 3,117 $ - Service revenue 73,931 - 73,931 242,989 73,931 3,117 77,048 242,989 OPERATING EXPENSES Personnel benefits 5,600 - 5,600 6,237 Repairs and maintenance 12,411 - 12,411 8,892 Supplies and tools 4,668 - 4,668 9,136 Travel, meetings, and training 4,240 - 4,240 3,005 Fuels and lubricants 33,352 - 33,352 33,974 Utilities 12,936 - 12,936 13,283 Professional services - - - 322,778 Depreciation 2,572 - 2,572 2,572 75,779 - 75,779 399,877 OPERATING INCOME (LOSS) (1,848) 3,117 1,269 (156,888) CHANGES IN NET POSITION (1,848) 3,117 1,269 (156,888) BEGINNING NET POSITION 8,773 626,505 635,278 792,166 ENDING NET POSITION $ 6,925 $ 629,622 $ 636,547 $ 635,278 4: CITY OF CHUBBUCK, IDAHO STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS FOR THE YEAR ENDED SEPTEMBER 30,2019 WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2018 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 NONCAPITAL FINANCING ACTIVITIES Net cash (used) in noncapital financing activities CASH FLOW FROM CAPITAL AND RELATED FINANCING ACTIVITIES 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 Employee Central Health Garage Insurance $73,931 $ 3,117 $ 77,048 $ 242,989 (68,331) - (68,331) (468,474) (5,600) - (5,600) (6,238) - 3,117 3,117 (231,723) - 3,117 3,117 (231,723) - 626,505 626,505 858,228 7 - 7 629,622 $629,622 $ 626,505 $ - $ 629,622 $629,622 $ 626,505 RECONCILIATIONS OF NET INCOME TO NET CASH PROVIDED BY OPERATING ACTIVITIES 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 59 Employee Central Health Garage Insurance Fund Fund $ (1,848) $ 3,117 2019 2018 $ 1,269 $(156,888) 2,572 - 2,572 2,571 (724) - (724) (77,406) 1,848 - 1,848 (74,835) $ - $ 3,117 $ 3,117 $(231,723) CITY OF CHUBBUCK, IDAHO BUDGETARY COMPARISON SCHEDULE NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED SEPTEMBER 30, 2019 Budgeted Amounts Variance Actual Positive Original Final Amounts (Negative) Resources General property taxes and sales tax $ 18,600 $ 18,600 $ - $ (18,600) Interest income 8,300 8,300 2,570 (5,730) Donations 80,000 80,000 60,994 (19,006) Other resources 40,000 40,000 95,894 55,894 Amounts available for appropriations 146,900 146,900 159,458 12,558 Charges to appropriations Street guarantee fund Juvenile referral fund Court fund Road projects fund Parks fund Total charges to appropriations NET CHANGE IN FUND BALANCE 19,100 19,100 - 19,100 500 500 - 500 42,100 42,100 - 42,100 1,200 1,200 - 1,200 84,000 84,000 17,100 66,900 146,900 146,900 17,100 129,800 Ann - AAn nr_n BEGINNING FUND BALANCE - - 516,555 516,555 ENDING FUND BALANCE $ - $ - $ 658,913 $ 658,913 STATISTICAL SECTION 61 CITY OF CHUBBUCK, IDAHO 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 63-70 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 71-74 These schedulers contain information to help the reader assess the City's most significant local revenue source, the property tax. Debt Capacity 75-76 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 77-79 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. 62 City of Chubbuck Net Position By Components Last Ten Fiscal Years (Accrual -Basis Accounting) 63 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Governmental activities: Invested In capital assets, net of related debt $ 5,069,941 $ 5,082,171 $ 7,706,251 $ 10,153,123 $ 11,396,599 $ 10,137,975 $ 11,138,839 $ 16,829,117 $ 24,019,218 $ 26,473,293 Restricted - - - - - - - - - - Unrestricted 1,825,092 2,451,180 2,896,706 3,592,593 4,130,936 4,532,072 6,181,447 3,212,484 547,753 (381,048) Total governmental activities net position 6,895,033 7,533,351 10,602,9571 3,745,716 15,527,535 14,670,047 17,320,286 20,041,601 24,566,971 26,092,245 Business -type activities Invested in capital assets, net of related debt 3,876,095 2,260,822 4,402,647 5,460,743 6,091,493 6,086,514 6,814,991 9,217,942 11,612,979 11,876,681 Restricted 132,650 237,981 169,081 165,781 167,481 165,181 166,731 168,131 164,850 166,100 Unrestricted 5,997,346 10,043,852 11,985,356 14,006,605 16,145,285 19,460,974 21,272,113 22,001,056 21,704,355 25,076,744 Total business -type activities net position 10,008,091 12,542,655 16,557,084 19,633,129 22,404,259 24,712,669 28,253,835 31,387,129 33,482,184 37,119,525 Primary government Net investment in capital assets 8,946,036 7,342,993 12,108,898 $ 15,613,866 $ 17,488,092 $ 16,224,489 $ 17,953,830 $ 26,047,059 $ 35,632,197 38,349,974 Restricted 132,650 237,981 169,081 165,781 167,481 165,181 166,731 168,131 164,850 166,100 Unrestricted 7,822,438 12,495,032 14,882,062 17,599,198 20,276,221 22,993,046 27,453,560 25,213,540 22,252,108 24,695,696 Total primary government net position $ 16,901,124 $ 20,076,006 $ 27,160,041 $ 33,378,845 $ 37,931,794 $ 39,382,716 $ 45,574,121 $ 51,428,730 $ 58,049,155 $ 63,211,770 63 Expenses Governmental activities: General Government Law enforcement Fire Control Building Inspection Street Parks & Recreation Health and welfare Other special funds CIAW WC Authority Total governmental activities expenses Business -type activities: Water Sewer Sanitation CIAW WC Authority Total business -type activities program expenses Total primary government program expenses 64 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 2012 2013 2010 2011 2014 2015 2016 2017 2018 2019 $ 297,342 $ 229,616 $ 235,127 $ 352,910 $ 443,813 $ 542,494 $ 896,297 $ 880,217 $ 862,299 $ 836,698 2,512,720 2,714,226 2,576,916 2,782,655 2,771,003 2,868,345 3,188,507 3,310,717 3,447,266 3,492,557 1,172,846 1,170,902 1,307,735 1,313,575 1,335,240 1,519,108 1,360,246 1,307,106 1,417,951 1,556,572 159,482 165,214 158,409 163,631 172,439 172,946 199,277 199,336 217,171 246,220 771,777 831,182 1,087,455 1,122,746 1,450,965 1,524,819 1,487,702 1,426,385 1,293,629 1,210,550 625,569 544,793 534,574 494,692 484,041 529,372 591,638 601,054 653,878 623,328 58,154 44,487 31,462 39,552 51,165 41,171 76,884 83,293 90,621 80,049 30,419 857 17,113 5,150 350 - 20,196 150 1,600 17,100 4,574 2,930 2,930 609,036 609,036 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 8,063,075 1,438,541 1,355,305 1,398,887 1,466,297 1,560,406 1,781,501 1,793,535 1,726,443 2,111,162 2,028,807 1,821,036 1,669,178 1,847,034 2,072,020 1,709,310 2,200,476 2,319,135 2,363,009 2,649,245 2,705,251 1,192,962 1,174,725 1,132,300 1,116,071 1,219,283 1,060,218 1,221,934 1,637,470 1,732,030 1,626,740 609,036 609,036 4,452,539 4,199,208 4,378,221 4,654,388 4,488,999 5,042,195 5,334,604 5,726,922 7,101,473 6,969,834 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 15,032,909 64 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) Program Revenues Governmental activities: Charges for services: General Government 121,602 237,249 133,808 203,578 134,555 298,505 365,049 414,674 323,186 399,415 Law enforcement - - - - - 35,311 28,918 31,942 29,940 34,221 Fire control 195,564 180,020 210,650 191,317 232,992 197,261 211,041 214,172 237,675 176,925 Street - - - - - - - - 13,165 17,468 Parks& Recreation 59,186 70,900 6,534 4,955 7,203 9,762 10,589 12,728 149,681 14,758 CIAWWC Authority - - - - - - - 10,980 - - Operatinggrantsandcontributions 184,265 64,685 43,612 128,818 33,200 48,000 43,890 71,329 84,653 179,095 Capital grants and contributions 916,767 2,667,268 2,354,109 3,644,635 1,019,354 Total governmental activities program revenues 560,617 552,854 394,604 528,668 407,950 1,505,606 3,326,755 3,109,934 4,482,935 1,841,236 Business -type activities: Charges for services: Water 2,193,212 2,204,728 2,386,464 2,582,932 2,422,542 2,680,920 2,783,945 2,728,684 2,896,320 2,983,977 Sewer 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 4,229,957 Sanitation 1,602,525 1,644,935 1,625,302 1,649,604 1,727,680 1,731,740 2,169,627 2,192,420 1,978,239 1,930,472 CIAWWC Authority - - - - - - - - 66,915 21,960 Operating grants and contributions - - - - - 11,328 - 134,662 93,730 - Capital grants and contributions - - - - - - - - 228,000 1,045,754 Total business -type activities program revenues 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 10,212,120 Total primary government program revenues 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 12,053,356 Net(Expense)/Revenue Governmental activities (5,067,692) (5,148,423) (5,554,187) (5,750,817) (6,303,996) (5,695,579) (5,103,028) (5,307,360) (3,501,480) (6,221,839) Business -type activities 1,665,529 2,513,715 2,861,898 2,760,483 2,754,339 2,965,654 3,276,706 3,132,558 2,140,865 3,242,286 Total primary governmental net (expense)/revenue (3,402,163) (2,634,708) (2,692,289) (2,990,334) (3,549,657) (2,729,925) (1,826,322) (2,174,802) (1,360,615) (2,979,553) 65 City of Chubbuck Change in Net Position Last Ten Fiscal Years (Accrual -Basis Accounting) 66 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General Revenues and other Changes in Net Position Governmental activities: General Property taxes and sales tax 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 6,499,369 Franchise fees 227,744 179,839 201,128 192,151 203,790 198,493 199,194 201,328 203,950 189,494 Intergovernmental 817,906 797,354 908,227 955,679 903,149 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 Leases and rents 19,491 50,644 52,546 90,843 66,152 - - - - - Interest income 19,292 30,738 36,797 60,367 60,651 76,828 90,432 98,064 157,760 182,445 Proceeds from sale of assets - - - - 11,154 - - - - - Gain on sale of assets 11,073 16,242 17,223 34,788 - 18,038 19,282 - 54,759 78 Capital contributions 34,088 217,034 2,683,248 2,254,771 1,286,887 - - - - - Other revenue - 35,491 18,486 89,066 14,366 41,828 766,042 763,697 199,888 186,953 Transfers in (out) - - - - (3,000) - - - - (534,080) CIAWWCAuthority - - - 228,000 228,000 - - - - - Totalgovernmentalactivities 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 7,927,865 Business -type activities: Interest income 22,844 22,849 32,121 644 574 - - - 4,000 106,283 Capital contributions - - 1,125,220 261,081 13,217 - - - - - Gain on sale of assets - - 10,800 2,400 - 2,530 86,100 736 11,252 - Transfersin(out) - - - - 3,000 100 - - - 534,080 Total business -type activities 22,844 22,849 1,168,141 264,125 16,791 2,630 86,100 736 15,252 640,363 Total primary government 5,328,736 5,792,049 9,680,349 9,152,216 8,080,390 6,655,963 7,839,367 8,029,410 7,981,040 8,568,228 Changes in Net Position Governmental Activities 238,200 620,777 2,958,021 3,137,274 1,759,603 957,754 2,650,239 2,721,314 4,464,308 1,706,026 Business -type activities 1,688,373 2,536,564 4,030,039 3,024,608 2,771,130 2,968,284 3,362,806 3,133,294 2,156,117 3,882,649 Total primary government $ 1,926,573 $ 3,157,341 $ 6,988,060 $ 6,161,882 $ 4,530,733 $ 3,926,038 $ 6,013,045 $ 5,854,608 $ 6,620,425 $ 5,588,675 66 City of Chubbuck Fund Balances of Governmental Funds Last Ten Fiscal Years (Modified Accrual -Basis of Accounting) 67 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 General fund Unassigned $ 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 $ 107,771 Total General Fund 1,334,763 1,884,064 2,348,830 2,708,737 2,933,821 2,952,093 3,410,321 3,939,114 1,239,050 107,771 All Other Governmental Funds Committed - 629,440 632,837 490,894 511,696 554,175 565,911 453,040 516,555 658,913 Unassigned: Special revenue funds 613,032 - - - - - - - - - Totalallothergovernmentalfunds $ 613,032 $ 629,440 $ 632,837 $ 490,894 $ 511,696 _L_154 175 $ 565,911 $ 453,040 _L_111 515 $ 658,913 67 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal Vears (Modified Accrual -Basis of Accounting) 68 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Revenues: Property fazes and sales tax $ 4,133,709 $ 4,435,834 $ 4,567,959 $ 4,984,949 $ 5,295,493 $ 5,349,772 $ 5,375,566 $ 5,627,360 $ 5,930,753 $ 6,405,974 Franchise fees 227,744 179,839 201,128 192,151 203,790 198,493 199,194 201,328 203,950 189,494 Intergovernmental 817,906 797,354 908,227 955,679 903,149 1,021,666 1,311,704 1,323,581 1,373,948 1,403,606 Court Revenue - - - - - 35,311 28,918 31,942 29,940 34,221 Parks revenue 2,499 1,977 2,399 1,720 2,668 5,402 7,629 10,733 7,729 8,670 License, permits and fines 121,602 237,249 133,808 203,578 134,555 219,868 289,199 320,860 231,180 308,615 Grants 158,025 58,465 27,892 302,500 14,800 466,000 248,290 336,433 43,629 109,076 Fire protection and prevention 195,564 180,020 210,650 191,317 232,992 197,261 211,041 214,172 237,675 176,925 Leases and rents 19,491 50,644 52,546 90,943 66,152 78,637 75,850 93,814 92,006 90,800 Interest Income 19,292 30,738 36,797 60,367 60,651 76,828 90,432 98,064 157,760 182,445 Donations 26,240 6,220 15,720 54,318 18,400 38,000 23,600 40,149 41,024 70,019 Donation of infrastructures 11,073 - - - - - - - - - Charges for services 56,687 68,923 4,135 3,235 4,535 4,360 2,960 12,975 155,117 23,556 Other revenues 34,088 35,491 18,486 89,066 14,366 41,827 19,063 65,897 867449 184,772 Total Revenues 5,823,920 6,082,754 6,179,747 7,129,723 6,9511551 7,7331425 718831446 8,3771308 8,591,160 9,188,173 68 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal years (Modified Accrual -Basis of Accounting) 69 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Expenditures: General government 301,208 186,863 214,382 326,399 393,539 483,135 574,204 496,074 580,806 621,568 Law enforcement 2,409,109 2,616,515 2,494,222 2,669,035 2,695,807 2,843,478 2,960,661 3,062,347 3,287,172 3,354,522 Fire control 1,024,047 1,127,747 1,174,659 1,211,430 1,234,101 1,431,180 1,213,866 1,181,308 1,300,583 1,463,484 Building inspection 157,675 165,214 158,409 163,631 172,439 174,432 181,199 186,059 212,747 244,749 Street 732,617 788,356 1,035,804 1,054,574 1,356,339 1,365,190 1,336,127 1,270,359 1,136,919 1,054,240 Parks and recreation 578,779 498,355 488,874 437,882 442,246 498,932 513,091 502,709 552,176 530,705 Health and welfare 58,154 44,487 31,462 39,552 51,165 41,171 76,884 83,293 90,621 80,049 Street guarantee fund - - - 5,000 - - - - - Court fund - 857 2,780 150 350 - 1,500 150 1,600 - Parksfund 30,419 - 14,333 - - - 18,696 - - 17,100 Capital outlays 177,694 58,690 225,467 968,502 365,442 409,060 333,207 953,944 4,160,478 2,806,886 CIAVVWC Authority 4,574 2,930 458,930 230,930 2,930 Total Expenditures 5,469,702 5,487,084 5,840,392 6,880,729 6,714,358 7,705,508 7,440,365 7,739,173 11,3237102 IQI73,303 Excess (deficiency) of Revenues over (under) Expenditures 354,218 595,670 339,355 248,994 237,193 27,917 443,081 638,135 (2,731,942) (985,130) 69 Other financing sources (uses): Proceeds from capital lease Proceeds from note payable Principal payments on leases Principal payments Imerest ..p.m. Proceeds from sale of assets Transfers in (out) Total other financing sources (uses) Net Change In Fund Balances Beginning Fund Balances Prior Period Adjustment Ending Fund Balances 2010 85,772 (72,089) (4,743) 8,940 City of Chubbuck Changes in Fund Balances of Governmental Funds Last Ten Fiscal years (Modified Accrual -Basis of Accounting) 2011 2012 2013 2014 2015 2016 - - 175,281 155,468 (43,139) - - - - - (249,263) (154,929) (3,064) - (5,330) - 16,242 17,223 42,796 11,154 3,506,268 3,976,232 3,000) (29,961) 17,223 (36,516) 8,693 11,680 2,930 (236,050) 21,153 23,953 13,837 32,833 26,883 (222,213) 2019 (4,000) (3,869) 99,393 78 95,393 (3,791) 363,158 565,709 356,578 212,478 245,886 60,750 469,964 415,922 (2,636,549) 1,584,637 1,947,795 2,625,090 2,987,153 3,199,632 3,445,518 3,506,268 3,976,232 4,392,154 111,586 $ 1,947,795 $ 2,625,090 $ 2,981,668 $ 3,199,632 $ 3,445,518 $ 3,506,268 $ 3,976,232 $ 4,392,154 $ 1,755,605 $ 70 1,755,605 766,684 City of Chubbuck General Government Tax and Intergovernmental Revenues by Source Last Ten Fiscal Years (modified accrual basis of accounting) 71 Local Tax Revenues Intergovernmental Revenues Total Local Taxes as a Highway Streets Total Local State Liquor Highway User's Court Road & Shared Sales Intergovernmental Percentage of Fiscal Year Property Tax Franchise Tax &Road Sales Tax Taxes Tax Revenue Revenue Bridge Tax Taxes Total Taxes Total 2010 $ 3,784,225 $ 230,678 $ 345,227 $ 4,365,734 $ 131,927 $ 397,068 $ 42,589 $ 65,582 $ 168,241 $ 805,407 $ 5,171,141 84% 2011 4,048,626 180,589 373,619 4,602,834 136,058 421,162 46,523 62,263 130,922 796,928 5,399,762 85% 2012 4,118,011 201,128 449,949 4,769,088 149,070 451,302 41,915 59,652 206,288 908,227 5,677,315 84% 2013 4,497,017 192,152 487,932 5,177,101 154,777 463,463 38,277 72,887 226,276 955,680 6,132,781 84% 2014 4,781,207 203,790 114,496 514,286 5,623,276 152,877 467,297 30,815 66,326 185,833 903,148 6,526,424 86% 2015 4,813,441 198,493 536,331 5,548,265 148,641 494,812 35,312 112,443 265,770 1,056,978 6,605,243 84% 2016 4,164,281 199,194 645,147 566,139 5,574,761 158,211 664,004 28,918 198,466 291,023 1,340,622 6,915,383 81% 2017 4,367,685 201,328 671,658 588,016 5,828,687 160,066 674,106 31,942 175,062 314,347 1,355,523 7,184,210 81% 2018 4,342,621 203,950 962,076 626,056 6,134,703 164,971 685,345 29,940 174,663 348,969 1,403,888 7,538,591 81% 2019 $ 4,820,932 $ 189,494 $ 933,810 $ 651,323 $ 6,595,559 $ 184,041 $ 719,995 $ 34,221 $ 121,341 $ 378,229 $ 1,437,827 $ 8,033,386 82% 71 City of Chubbuck 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 2010 431,386,854 6,776,598 704,500 214,484,395 - 653,352,347 0.008466774 2011 436,089,131 7,435,674 302,838 230,651,324 - 674,478,967 0.009150122 2012 446,262,451 7,358,180 488,182 225,397,223 - 679,506,036 0.009324266 2013 454,554,481 7,573,803 513,109 203,675,558 638,203 666,955,154 0.009969299 2014 459,147,628 7,502,193 1,138,795 236,839,910 - 704,628,526 0.009967676 2015 461,440,210 7,884,559 1,017,251 238,171,372 81,774 708,595,166 0.009933799 2016 475,051,058 7,702,297 1,697,797 251,008,396 81,774 735,541,322 0.010140122 2017 507,182,903 8,152,805 469,490 263,554,022 81,744 779,440,964 0.010188661 2018 524,061,262 8,420,799 2,493,034 275,948,575 - 810,923,670 0.010636971 2019 * 638,286,498 10,507,134 - - - 648,793,632 0.009459658 *Preliminary Assessment Values Source: Bannock County Clerks Office Note: Twenty percent of the property in the county is reassessed annually. The County assesses property at 100% of market value. Tax rates are per $1,000 of assessed value. 72 Tax Rate Per $1,000 Value $ 8.47 $ 9.15 $ 9.32 $ 9.97 $ 9.97 $ 9.93 $ 10.14 $ 10.19 $ 10.64 $ 9.46 City of Chubbuck Property Tax Rates Direct and Overlapping (1) Governments Last Ten Fiscal Years (per $1,000 of assessed value) Source: Bannock County Assessors Office (1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck. 73 City of Chubbuck City of Chubbuck Overlapping Rates County Road & Ambulance Service School District 25 Combined Levy Year City Rates Base Rates Bannock County Rates Bridge Rates Abatement Rates Portneuf Library Rates Rates Rates Rates 2010 0.008466774 8.47 5.17 0.61 0.17 0.61 0.25 3.82 19.10 2011 0.009150122 9.15 5.28 0.43 0.15 0.57 0.25 3.86 19.70 2012 0.009324266 9.32 4.82 0.41 0.13 0.61 0.24 3.90 19.43 2013 0.009969299 9.97 4.92 0.47 0.05 0.61 0.40 4.49 20.91 2014 0.009967676 9.97 5.30 0.48 0.05 0.57 0.40 4.14 20.91 2015 0.009933799 9.93 5.28 0.85 0.04 0.58 0.40 4.42 21.50 2016 0.010140122 10.14 5.24 0.73 0.03 0.61 0.40 3.94 21.09 2017 0.010188661 10.19 5.37 0.67 0.03 0.58 0.40 3.88 21.12 2018 0.010636971 10.64 5.62 0.47 0.03 0.61 0.40 3.85 21.62 2019 0.009459658 9.46 4.85 0.53 0.03 0.52 0.35 3.33 19.06 Source: Bannock County Assessors Office (1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck. 73 City of Chubbuck Principal Taxpayers September 30, 2019 *Estimated Assessment Values Source: Bannock County Assessors Office 74 2019 2010 Percentage of Assessed Total Assessed Percentage of Total Taxpayer Type of Business Valuation Rank Valuation * Assessed Valuation Rank Assessed Valuation IDAHO CENTRAL CREDIT UNION BANK 28,237,000 1 4.35% 15,249,619 2 2.33% 4200 HAWTHORNE LLC REAL ESTATE HOLDINGS 11,600,000 2 1.79% - - 0.00% WAL MART REAL ESTATE RETAIL 11,556,000 3 1.78% 10,126,800 3 1.55% PINE RIDGE MALL JC LLC RETAIL 11,357,000 4 1.75% 19,750,700 1 3.02% SHJH LLC APARTMENTS 9,683,000 5 1.49% - - 0.00% AGREE LIMITED PARTNERSHIP REAL ESTATE INVESTMENTS 8,980,000 6 1.38% - - 0.00% HD DEVELOPMENT OF MARYLAND INC REAL ESTATE DEVELOPMENT 8,251,000 7 1.27% 6,255,830 4 0.96% CARMIKE CINEMAS INC. ENTERTAINMENT 7,531,000 8 1.16% 4,955,000 5 0.76% PINE RIDGE IDAHO LLC REAL ESTATE HOLDINGS 4,953,000 9 0.76% - - 0.00% TEKLE, HAILE 4,927,000 10 0.76% - - 0.00% SHOPKO SPE REAL ESTATE LLC RETAIL - - 0.00% 4,474,725 6 0.68% EMERITOL RIDGE WIND LLC DATABASE - - 0.00% 4,244,700 7 0.65% SEARS ROEBUCK AND CO. RETAIL - - 0.00% 3,863,254 8 0.59% GOLDING FAMILY LIMITED - - 0.00% 3,828,500 9 0.59% RATLIFF, GARY REAL ESTATE - - 0.00% 3,547,355 10 0.541% Total Top Ten $ 107,075,000 16.50% $ 76,296,483 11.68% *Estimated Assessment Values Source: Bannock County Assessors Office 74 City of Chubbuck 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 75 Governmental Activities Business Type Activities (1) Fiscal Sanitation Water Note Sewer Note Total Primary Estimated Per Year Capital Lease Notes Sewer Bond Water Bond DEQ DEQ Government Papulation Capita 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 14,445,385 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 2019 - 764,418 - 1,010,000 7,530,708 12,740,295 22,045,421 15,316 1,439 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 75 City of Chubbuck Revenue Bond Coverage Water Fund Last Ten Fiscal Years Debt Service Requirements (3) (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. 76 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 2,583,576 1,263,607 1,319,969 110,000 58,338 168,338 7.84 6.27 2014 2,423,116 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 2016 2,783,945 1,535,492 1,248,453 120,000 55,514 175,514 7.11 5.69 2017 2,728,684 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 2019 2,983,977 1,744,722 1,239,255 130,000 32,182 162,182 7.64 6.11 (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. 76 City of Chubbuck Statistical Information Water Fund September 30, 2019 Schedule of Water Revenue and Production For Residential, Commercial, and Government Accounts Total Revenue $ 2,983,977 Estimated number of active customers 4,391 Total water produced (gallons) 921,554 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" 1,762.60 Volumetric charge: $1.15 per 1,000 gallons metered water. Volumetric charge for circuit breaker: $.80 per 1,000 gallons metered water. 77 CITY OF CHUBBUCK, IDAHO Ten Largest Water System Customers For The Fiscal Year Ended September 30, 2019 (per 1,000 gallon used) Total Top Ten Consumers Total Usage 78 83,503 100.0% 921,554 9.1% % of Total Water Top Ten % of Total Customer Business Type Usage Consumers Usage Pine Ridge Mall JC LLC Shopping Center 26,272 31.5% 2.9% Idaho Central Credit Union Banking 10,276 12.3% 1.1% Woodland LLC Mobile Homes 10,032 12.0% 1.1% Circle Inn Trailer Park Mobile Home Park 8,302 9.9% 0.9% Travel Lodge Motel 6,095 7.3% 0.7% Meadows MHP Apartment Complex 4,757 5.7% 0.5% Camelot Trailer Park Mobile Home Park 41546 5.4% 0.5% Pheasant Ridge HOA Inc. Residential Development 4,472 5.4% 0.5% Shiv Shakti Hospitality LLC Lodging 4,448 5.3% 0.5% Pine Ridge Idaho LLC Apartment Complex 4,303 5.2% 0.5% Total Top Ten Consumers Total Usage 78 83,503 100.0% 921,554 9.1% City of Chubbuck Statistical Information Sewer Fund September 30, 2019 Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts Total Revenue Schedule of Sewer Rates Monthly Base Fee Regular Residential $ 46.60 NWSI Residential 10.45 4,229,957 Circuit Breaker 32.62 Commercial rate for businesses North of the Interstate is $6.58340 per $1,000 gallons of water used. Commercial rate for businesses South of the Interstate is $7.65340 per $1,000 gallons of water used. NWSI Commercial rate is winter water average usage divided by $6.85 and multiplied by $10.45. 79 SINGLE AUDIT SECTION CITY OF CHUBBUCK SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS For The Fiscal Year Ended September 30, 2019 Federal Grantor/Pass-Through Grantor/Program Title CFDA Grant Number U.S. Department of Agriculture Forest Service: Passed through the Idaho Department of Lands Cooperative Forestry Assistance Total U.S. Department of Agriculture U.S. Department of Justice Office of Justice Programs: Passed through the Department of Juvenile Corrections Juvenile Justice and Delinquency Prevention - Allocation to States Total U.S. Department of Justice U.S. Department of Transportation Transit Services Programs Cluster: Passed through the Idaho Transportation Department Enhanced Mobility for Seniors and Individuals with Disabilities Total Transit Services Programs Cluster 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 Agency Drinking Water State Revolving Fund 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 Cluster Total Expenditures of Federal Awards 10.664 14UCF-Chubbuck 16.540 2013MUFX0022 20.513 ID -2016-021-01 Expenditures Subrecipients 2,246 2,246 606 606 32,556 32,556 20.600 SDD1802 3,436 20.600 SSB19EB 4,500 20.600 SPT1902 4,000 20.608 S641801 3,000 20.616 SID1821 1,447 20.616 SID19EA 3,951 20.616 SID19ED 2,970 20.616 SID19EB 2,925 20.616 SKD1902 49,364 108,149 66.468 DW1602 2,347,456 2,347,456 2,458,457 81 See accompanying notes 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, 2019. 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 elected to use the Simplified Allocation Method for certain grants, as approved 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. 82 Deaton & Company, Chartered Certified Public Accountants Arm 215 North 9th, Suite A Pocatello, ID 83201-5278 (208)232-5825 Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants INDEPENDENT AUDITORS 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, 2019, and the related notes to the financial statements, which collectively comprise City of Chubbuck's basic financial statements, and have issued our report thereon dated March 27, 2020. Internal Control Over Financial Re 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. L Pocatello, Idaho March 27, 2020 Deaton & Company, Chartered Certified Public Accountants 215 North 9th, Suite A Pocatello, ID 83201-5278 (208)232-5825 �- Members of the Idaho Society of Certified Public Accountants Members of the American Institute of Certified Public Accountants 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, 2019. 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 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 audit includes examining, on a test basis, evidence about City of Chubbuck's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. 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, 2019. 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. Accordingly, we do not express an opinion on the effectiveness of City of Chubbuck's 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 27, 2020 CITY OF CHBBUCK, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE YEAR ENDED SEPTEMBER 30, 2019 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 Major 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 PRIOR YEAR FINDING NONE 87 February 25, 2020 City of Chubbuck, Idaho Attn: Rich Morgan, Treasurer/CFO PO Box 5604 Chubbuck, Idaho 83202 Sent via email to: rmorgan@cityofchubbuck.us ZIONS BANK® Re: CiTy of Chubbuck, Idaho Annual Appropriation Certificates of Participation, Series 2019 Dear Mr. Morgan: The following are compliance items that are required to be delivered to the Trustee in March: Annual Continuous Disclosure Information Per Section 3 of the Information Report ing Agreement, the CiTy is to provide the Disclosure Agent its annual Continuous Disclosure Information no later than 180 days after the close of the prior Fiscal Year (September 30). See Sections 3(a) and 3(b) for the information to be provided. This information includes the audited financial statements, Issuer written representation to the Disclosure Agent and updated tables from the Official Statement which includes other financial, statistical and operating data for the fiscal year. Due 3/28. EMMA I have attached the section of the document relating to the items due. Please review the section to ensure accurate reporting. NOTE: The Securities and Exchange Commission (SEC) has taken a strong stance regarding the timeliness of interim and annual continuing disclosure compliance reporting on EMMA. Please make every effort to meet the due date requirements on your compliance items. The rules require disclosure of late or non-compliance which could mean the reporting ofyour non-compliance on offering documents for the next financing you may want to complete. Please email all Sin items to me and copy Launa Rightmeier (launa.rightmeier@zionsbank.com) to ensure your items have been received. If you have any questions, please call me at (208) 501-7493. cerely Twyla D. Lehto (Twyla.Lehto@zionsbank.com) Manager and Senior Vice President CORPORATE TRUST • 800 W. Main Street, Ste. 700, Boise, ID 83702 Office 208 501-7493 fax 855 855-9705 A division of ZB, N.A. Member FDIC. Q Equat Housing Lender CITY OF CHUBBUCK, IDAHO INFORMATION REPORTING AGREEMENT Re: $14,815,000 initial principal amount of City of Chubbuck, Idaho, Annual Appropriation Certificates of Participation, Series 2019, dated November 20, 2019 (the "Certificates") authorized pursuant to an Ordinance adopted on October 16, 2019 (the "Ordinance"), by the City Council of the City of Chubbuck, Idaho (hereinafter the "City" or the "Issuer"), approving certain Financing Documents as described below and authorizing the issuance and confirming the sale of the Certificates. THIS INFORMATION REPORTING AGREEMENT (the "Agreement") is executed and delivered by the City, as the obligated person hereunder, and Zions Bancorporation, National Association (hereinafter "Disclosure Agent") as of the date set forth below in order for the City to authorize and direct the Disclosure Agent, as the agent of the City, to make certain information available to the public in compliance with Section (b)(5)(i) of Rule 15c2-12, as hereinafter defined. WITNESSETH: 1. Backeround. The Issuer has resolved to authorize issuance of the Certificates pursuant to the Ordinance, the Annual Appropriation Trust Indenture dated November 20, 2019 (the "Indenture"), among the Issuer, Zions Bancorporation, National Association (the "Bank"), and Zions Bancorporation, National Association, as trustee, paying agent and registrar (the "Trustee"), and the Annual Appropriation Lease Agreement dated November 20, 2019, between the Issuer, as lessee, and the Bank, as lessor (the "Appropriation Lease"). The Appropriation Lease and the Indenture are herein collectively referred to as the "Financing Documents"). The CUSIP number assigned to the final maturity of the Certificates is 171255AZ5. 2. Appointment of Disclosure Agent. The Issuer hereby appoints the Disclosure Agent and any successor Disclosure Agent acting as Trustee under the Indenture as its agent under this Agreement to disseminate the financial information and notices furnished by the Issuer hereunder in the manner and at the times as herein provided and to discharge the other duties assigned with respect to the Certificates. r3. f Information to be Furnished by the Issuer. The Issuer hereby covenants for the benefit of the registered and beneficial holders of the Certificates that, as long as the Certificates are outstanding under the Financing Documents, the Issuer will deliver the following information to the Disclosure Agent: INFORMATION REPORTIlVGAGREEMENT, P. 1 56125.0001.12052613.3 (a' J Within 180 days after the end of the Issuer's fiscal year, beginning with fiscal year e d September 30, 2019, the audited financial statements of the Issuer prepared in accordance with generally -accepted accounting principles, together with the report thereon of the Issuer's independent auditors. If audited financial statements are not available by the time specified herein, unaudited financial statements will be provided and audited financial statements will be provided when, and if, available. The Issuer shall include with each submission a written representation addressed to the Disclosure Agent to the effect that the financial statements are the financial statements required by this Agreement and that they comply with the applicable requirements of this Agreement."` For the purposes of determining whether information received from the Issuer is the required financial statements, the Disclosure Agent shall be entitled conclusively to rely on the Issuer's written representation made pursuant to this Section. { b. Within 180 days after the end of the Issuer's fiscal year, beginning with fiscal year en ed September 30, 2019, the other financial, statistical and operating data for said fiscal year of the Issuer in the form and scope similar to the financial, statistical and operating data contained in the Issuer's Official Statement, specifically the tables and/or information contained under the following tables and headings of the Official Statement: Updated TABLE 3 entitled "DIRECT AND OVERLAPPING TAX RATES" —page 29 Updated TABLE 4 entitled "PROPERTY VALUES"—page 30 Updated TABLE 5 entitled "PROPERTY TAX COLLECTION" —page 30 Updated TABLE 6 entitled "PRINCIPAL TAXPAYERS" — page 31 Unless otherwise contained within the audited financial statements of the Issuer, updated TABLE 7 entitled "CITY INDEBTEDNESS" — page 32 Updated TABLE 8 entitled "STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN FUND BALANCE—GENERAL FUND" — page 37 Updated TABLE 9 entitled "STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION—CONSOLIDATED WATER, SEWER AND SANITATION FUNDS" — page 38 Updated TABLE 10 entitled "STATEMENTS OF REVENUES, EXPENSES AND CHANGES IN NET POSITION—HIGHWAY, STREETS AND ROADS FUND" — page 39 Updated TABLE i l entitled "BALANCE SHEET—GENERAL FUND" — page 40 c. The Disclosure Agent shall provide notice to the Issuer of its requirement to provi e e information listed in Sections 3.a. and 3.b. at least thirty (30) days prior to the date such information is to be provided to the Disclosure Agent by the Issuer. Any or all of the items listed above in Sections 3.a. or 3.b. may be incorporated by reference from other documents, including official statements of debt issues of the Issuer which have been previously submitted to the Repository or the SEC. If the document incorporated by reference is a final official INFORMATION REPORTING AGREEMENT - P. 2 56125.0001.12052813.3 statement, it must be available from the MSRB. The Issuer shall clearly identify each such document incorporated by reference. In the event Issuer is unable or fails to provide the required annual financial information specified in Sections 3.a. and 3.b. above on or before the date specified therein, Issuer shall timely submit to the Repository notice of such failure in the form attached hereto as Exhibit A. dI Within ten (10) business days after the occurrence of the event, notice of any of the following events with respect to the Certificates: (1) Principal and interest payment delinquencies; (2) Nonpayment -related defaults, if material; (3) Unscheduled draws on debt service reserves reflecting financial difficulties; (4) Unscheduled draws on credit enhancements reflecting financial difficulties; (5) Substitution of credit or liquidity providers, or their failure to perform; (6) Adverse tax opinions, the issuance by the Internal Revenue Service of proposed or final determinations of taxability, Notices of Proposed Issue (IRS Form 5701-TEB) or other material notices or determinations with respect to the tax status of the security, or other material events affecting the tax status of the security; (7) Modifications to rights of security holders, if material; (8) Certificate calls, if material, and tender offers; (9) Defeasan ces; (10) Release, substitution or sale of property securing repayment of the securities, if material; (11) Rating changes; (12) Bankruptcy, insolvency, receivership or similar event of the obligated person; I I For the puryoses of the event identified in paragraph (12) above, the event is considered to occur when any of the following occur: The appointment of a receiver, fiscal agent or similar officer for an obligated person in a proceeding under [he U.S. Bankruptcy Code or in any other proceeding under state or federal law in which a court or governmental authority has assumed jurisdiction over substantially all of the assets or business of the obligated person, or if such jurisdiction has been assumed by leaving the existing governing body and officials or officers in possession but subject to the supervision. andordersof a court or governmental authority, or the entry of an order continuing a _ plan of reorganization, arrangement or liquidation by a court or governmental authority having supervision or jurisdiction over substantially all of the assets or business of the obligated person. ' INFORMATION REPORTING AGREEMENT - P. 3 58125.0001.12052813, 3 From: EMMANotifications@msrb.org Sent: Friday, March 27, 2020 2:25 PM To: Dan Christensen Subject: [EXTERNAL EMAIL] Confirmation: Continuing Disclosure Submission Successfully Published to EMMA Your continuing disclosure submission has been published and can be viewed on the MSRB's Electronic Municipal Market Access (EMMAO) website at the following link: https://emma.msrb.org/ContinuingDisclosureView/ContinuingDisclosureDetails.aspx?subm issionId=ER1 014439 Submissionld: ER1014439 Disclosure Type: FINANCIAL/OPERATING FILING Audited Financial Statements or CAFR (Rule 15c2-12): 2019 City of Chubbuck - CAFR and Table Updates for the year ended 09/30/2019 Document Name: Financial Operating Filing dated 03/27/2020 2019 City of Chubbuck - CAFR, table updates and Ce posted 03/27/2020 4:15:43 PM The following issuers are associated with this continuing disclosure submission: CUSIP6 State Issuer Name 171255 ID CHUBBUCK IDAHO ANNUAL APPROPRIATION CTFS PARTN The following 16 Securities have been published with this continuing disclosure submission: Security: CUSIP - 171255AAO, Maturity Date - 09/01/2021 Security: CUSIP - 171255AB8, Maturity Date - 09/01/2022 Security: CUSIP - 171255AC6, Maturity Date - 09/01/2023 Security: CUSIP - 171255AD4, Maturity Date - 09/01/2024 Security: CUSIP - 171255AE2, Maturity Date - 09/01/2025 Security: CUSIP - 171255AF9, Maturity Date - 09/01/2026 Security: CUSIP - 171255AG7, Maturity Date - 09/01/2027 Security: CUSIP - 171255AH5, Maturity Date - 09/01/2028 Security: CUSIP - 171255A11, Maturity Date - 09/01/2029 Security: CUSIP - 171255AK8, Maturity Date - 09/01/2030 Security: CUSIP - 171255AL6, Maturity Date - 09/01/2031 Security: CUSIP - 171255AM4, Maturity Date - 09/01/2032 Security: CUSIP - 171255AN2, Maturity Date - 09/01/2033 Security: CUSIP - 171255AP7, Maturity Date - 09/01/2034 Security: CUSIP - 171255AU6, Maturity Date - 09/01/2039 Security: CUSIP - 171255AZ5, Maturity Date - 09/01/2044 Please follow the link to make changes to this submission: https://dataport.emma.msrb.org/Home?Index PLEASE DO NOT REPLY. This is a system -generated e-mail. If you need assistance please contact the MSRB at 202-838-1330 or you may obtain more information at www.msrb.org. From: tim.williamson@usbank.com mailto:tim.williamson usbank.com] Sent: Monday, February 3, 2020 8:30 AM To: Richard Morgan <rmorgan@cityofchubbuck.us> Subject: [EXTERNAL EMAIL] Request for Required Compliance Items Dear Mr. Morgan: This email is being sent in advance of the due date of the following item(s) to assist you in providing us with the required documentation in a timely manner. Account: County of Bannock, City of Chubbuck, State of Idaho Parity Water Revenue Bond, Series 2011 Account Number: 150174*** Item I Document Reference Due Date Annual Audited FS/Operating Data for Continuing Disclosure Agreement Disclosure - Section 1 & 2 03/28/2020 If the requested item(s) has been sent, you may disregard this email. Pursuant to the terms of the above agreement, the above item must be filed with the Municipal Securities Rulemaking Board (MSRB) and made available via the Electronic Municipal Market Access System (EMMA) in a word -searchable portable document format (pdf). If the item is not submitted in a word -searchable portable document format, extraordinary fees may be assessed. If the required item is not received timely, U.S. Bank may be required to submit a "Failure to File Disclosure Document" notice via the MSRB EMMA system. We appreciate your attention to this matter. Please contact me at the telephone number or email address below to discuss any questions or concerns you may have regarding the content of this email. You may also contact your Relationship Manager, Kim R. Galbraith, at (801) 534-6083. Sincerely, Tim Williamson U.S. Bank Facsimile: (206) 344-4630 Email: tim.williamsonausbank.com U.S. Bank Confidential U.S. BANCORP made the following annotations From: Stogdill, Christina A <christina.stogdill@usbank.com> Sent: Friday, March 27, 2020 1:07 PM To: Dan Christensen Cc: Williamson, Tim Subject: [EXTERNAL EMAIL] Published Submission Confirmation- Annual City of Chubbuck Water Rev Bds Ser 2011 Attachments: Submission ID ER1014326.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://emnia.msrb.org). https://emma.msrb.org/MarketActivity/ContinuingDisclosureDetails/ER1014326 If you have any questions, please feel free to contact me at 206-344-4677. Thank you, Tina Stogdill Corporate Trust Control Spec p. 206.344.4677 1 christina.stogdill@usbank.com U.S. Bank Seattle Tower 1420 Fifth Ave, Seattle, WA 98101 1 PD-WA-T7CT I usbank.com U.S. BANCORP made the following annotations Electronic Privacy Notice. This e-mail, and any attachments, contains information that is, or may be, covered by electronic communications privacy laws, and is also confidential and proprietary in nature. If you are not the intended recipient, please be advised that you are legally prohibited from retaining, using, copying, distributing, or otherwise disclosing this information in any manner. Instead, please reply to the sender that you have received this communication in error, and then immediately delete it. Thank you in advance for your cooperation. EMMA Electronic Municipal Market Access A service of the ntSRB Submission ID: ER1014326 Submission Date: 3/27/2020 3:04 PM Status: PUBLISHED Disclosure Categories Rule 15c2-12 Disclosure Audited Financial Statements or CAFR for the year ended 09/30/2019 Document File Period Date 2019 CITY OF CHUBBUCK - CAFR.pdf 0312712020 Associated Securities The following are associated with this continuing disclosure submission. CUSIP-6 Issuer Name 171259 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO Total CUSIPs associated with this submission: 7 The disclosure will be published for the following securities CUSIP-9 Issue Description Dated Date Maturity Date 17125913/35 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 09128/2011 09/01/2020 171259BE3 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 09/28/2011 09/01/2021 171259BFD CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 09/28/2011 09101!2022 171259BGR CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 09128/2011 0910112023 171259BH6 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 09/28/2011 09/01/2024 171259BJ2 CITY OF CHUBBUCK, BANNOCK COUNTY, IDAHO WATER REVENUE BONDS, SERIES 2011 09/28/2011 0910112025 Submitter's Contact Information Issuer's Contact Information Obligated Person's Contact Information US BANK NATIONAL ASSOCIATION City of Chubbuck Name: CHRISTINA STOGDILL Name: Dan Christensen Address: 1420 FIFTH AVE Address: City, State Zip: SEATTLE, WA 98101 City, State Zip: Phone Number: 2063444677 Phone Number: Email: christina.stogdill@usbank.com Email: dchristensen@cityofchubbuck.us ©2020 Municipal Securities Rutemaking Board (MSRB) Coupon(%) 3 3 3 3 4 4