HomeMy WebLinkAboutItem #7 Comprehensive Financial ReportonHo
CITY OF CHUBBUCK, IDAHO
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
CITY OF CHUBBUCK, IDAHO
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
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
26-27
Independent Auditor's Report
10-12
Management Discussion and Analysis
13-22
Basic Financial Statements:
Statements of Net Position
23
Statements of Activities
24
Balance Sheets - Governmental Funds
25
Statements of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
26-27
Statements of Position - Proprietary Funds
28
Statements of Revenues, Expenses, and Changes in Net Position - Proprietary
29
Statements of Cash Flows - Proprietary Funds
30-31
Statement of Fiduciary Net Position - Recreational Program Fund
32
Statement of Changes in Fiduciary Net Position - Recreational Program Fund
33
Notes to Financial Statements
34-49
Required Supplementary Information 50
Budgetary Comparison Schedule - General Fund 51
Budgetary Comparison Schedule - Highway, Streets and Roads 52
Schedule of Employer's Share of Net Pension Liability 53
Schedule of Employer Contributions 54
Notes to Required Supplementary Information 55
2
CITY OF CHUBBUCK, IDAHO
ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED SEPTEMBER 30, 2023
TABLE OF CONTENTS - CONTINUED
Page
Other Supplementary Information
56
Combining Balance Sheet - Nonmajor Governmental Funds
57
Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor
Governmental Funds
58
Statements of Net Position - Internal Service Funds
59
Statements of Revenues, Expenses, and Changes in Net Position - Internal Service
Funds
60
Statements of Cash Flows - Internal Service Funds
61
Budgetary Comparison Schedule - Nonmajor Governmental Funds
62
Statistical Section
63
Statistical Section - Table of Contents
64
Financial Trends
65-72
Revenue Capacity
73-76
Debt Capacity
77-78
Operating Information
79-81
Single Audit
82
Schedule of Expenditures of Federal Awards
83
Notes to the Schedule of Expenditures of Federal Awards
84
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
85-86
Independent Auditor's Report on Compliance for Each Major Program; and Report on
Internal Control Over Compliance Required by the Uniform Guidance
87-88
Schedule of Findings and Questioned Costs
89
3
INTRODUCTORY SECTION
CHUBBUCI(
ioaxo
www.cityofchubbuc:k.us
290 E. Linden Avenue
Chubbuck, ID 83202
(208) 237-2400 phone
(208) 237-2409 fax
MAYOR
Kevin England
May 3, 2024
COUNCIL MEMBERS
Roger Hernandez
Dan Heiner
Melanie Evans
Norman Reece
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, 2023.
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, 2023. 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 (estimated population of 16,223) 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
estimated population of 57,730. The City is located in Bannock County with an estimated population of
89,517. 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 May 3, 2024
� 06 1
P --
Rich Morgan Daniel Christensen
City Treasurer City Accountant
CITY OF CHUBBUCK, IDAHO
List of Principal Officials
SEPTEMBER 30, 2023
Title Name
Elected Officials
Mayor
Kevin England
Council
President
Roger Hernandez
Council
Member
Melanie Evans
Council
Member
Dan Heiner
Council
Member
Norman Reece
City Officials
City Attorney
Ryan Lewis
Public Works Director
Bridger Morrison
City Engineer
Bridger Morrison
Sewer/Water Superintendents
Scott Baker/Cameron Lusk
Sanitation/Streets Superintendent
Ryan Sullivan
Treasurer
Rich Morgan
City Clerk
Joey Bowers
Human Resource Officer
Scott Gummersall
City Accountant
Dan Christensen
Community Services
Devin Hillam
Police Chief
Bill Guiberson
Computer Information Systems
Joey Bowers
Parks & Recreation
Aaron Schilhabel
Fire Chief
Merlin Miller
0
COMM
SERV
CITY OF CHUBBUCK
ORGANIZATION CHART
L -
LDEVELOPMENT PLANNING SERVICES I
BUILDING PARKS
9
FIRE II POLICE
ANIMAL
CONTROL
Deaton & Company, Chartered
Certified Public Accountants
215 North 91h, Suite A
Pocatello, ID 83201-5278
(208) 232-5825
Members of the Idaho Society of Certified Public Accountants
Members ofthe 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
Opinion
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, 2023, and the related notes
to the financial statements, which collectively comprise the City's basic financial statements as listed in the table
of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the respective
financial position of the governmental activities information of the City of Chubbuck, Idaho, as of September 30,
2023, and the respective changes in financial position, for the year then ended in accordance with accounting
principles generally accepted in the United States of America.
Basis for Opinion
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. Our responsibilities under those standards are further described in
the Auditor's Responsibilities for the Audit of the Financial Statements section of our report. We are required to
be independent of the City of Chubbuck, Idaho, and to meet our other ethical responsibilities, in accordance with
the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is
sufficient and appropriate to provide a basis for our audit opinion.
Responsibility of Management 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City of Chubbuck's ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a
guarantee that an audit conducted in accordance with generally accepted auditing standards and Government
Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material
misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion,
forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are
considered material if there is a substantial likelihood that, individually or in the aggregate, they would influence
the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or
error, and design and perform audit procedures responsive to those risks. Such procedures include
examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.
• Obtain an understanding of internal control relevant to the audit 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 City's internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that
we identified during the audit.
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 13-22, 51-52 and
53-54, 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.
Supplementary Information
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 2022 audited financial
statements and, in our report dated March 28, 2023, 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.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated May 3, 2024, 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
May 3, 2024
CITY OF CHUBBUCK, IDAHO
Management's Discussion and Analysis
For the Year Ended September 30, 2023
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,
2023. We encourage readers to consider the information presented here in conjunction with additional
information that we have furnished in the notes to financial statements.
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 $99,667,055 (net
position ).
• The City's net position increased by $9,890,180. Approximately 38 percent of this
increase, $3,752,542 is attributed to capital contributions.
• At the end of the current fiscal year, the unassigned general fund balance was
$7,940,207 or 60 percent of total general fund expenditures.
• In the City's business -type activities, operating revenues increased by $1,220,577, and
operating expenses increased by $134,401. These differences are due to a combination
of increases in services rendered and increases in operating costs, respectively .
• During the current fiscal year, City of Chubbuck's governmental and business -type
liabilities had a decrease of $2,073,603 from $31,924,598 to $29,850,995 . The decrease
was primarily due to a decrease in unearned revenue and net pension liabilities.
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)
government -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 the City's assets, deferred outflows, and
liabilities with deferred inflows, with the difference between each reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position of
the City's is improving or deteriorating.
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).
13
Both 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 the City of Chubbuck funds ty of Chubbuck can be divided into three
categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental Funds. Governmental funds are used to account for 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 evaluating 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 23-27 of the City's
financials .
Proprietary Funds. The City of Chubbuck maintains two different types of proprietary funds:
enterprise funds and internal service 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.
14
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 internal service
funds to account for its central garage operations and employee health benefit program. The
internal service funds are allocated proportionally between governmental and business -type
funds.
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 information for all enterprise funds. The Water, Waste Water, 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 28-29 of the City's
financials .
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 32-33 of the City's financials.
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 34-50 of the City's
financials .
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
versus actual expenses and revenues, the schedule of employer's share of net pension liability
and schedule of employer contributions. The schedules are followed by the internal service fund
financial statements, and nonmajor budget comparison schedule. The other supplementary
information is concluded with the statistical section and schedule of expenditures of federal
awards.
15
Government -wide Financial Analysis
As noted earlier, net position may serve over time as useful indicator of government's financial position.
In the case of the City of Chubbuck, assets exceeded liabilities by $99,667,055 as of September 30, 2023.
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 services 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
Curren. and other assets
Noncurrent assets
Total assess
DEFERRED OUTFLOWS
Pension
LIABILITIES
Current liabilities
Long-term liabilities outstanding
DEFERRED INFLOWS
Pension
Certificate of parlicipatian
NET POSITION
Net investment in captial assets
Restricted
Unrestricted
Total net pasitian
City of Chnhhnek's Net Position
Governmental Activities Business Activities Total
2023 2422 2023 2022 2023 2422
S 9,721,782 S 6,843,100 S 25,206,296 S 22,776,569 S 34,928,078 S 29,619,669
48,991,200 43,634,293 56,989,061 56,571,188 105,980,261 99,605,481
58,712,982 49,877,393 82,195,357 79,347,757 140,908,339 129,225,150
1,729,597 2,372,794 706,567 998,160 2.436,164 3,370,954
1.603,275 3,569,191 3,869,559 3,158,417 5,472,834 6,727,608
5,695,462 4,951,609 18,682,699 20,245,381 24,378,161 25,196,990
7,298,737 8,520,800 22,552,258 23,403,798 29,850,995 31,924,598
- 52,245 - 21,977 - 74,222
8,467,064 5,149,278 5,359,389 5,671,131 13,826,453 10,820,409
48,801,763 42,961,654 44,796,281 43,397,173 93,598,044 86,298,227
- - 164,600 168,950 164,600 168,950
(4,124,985) (4,373,190) 10,029,396 7,682,888 5,904,411 3,309,698
S 44,676,778 S 38,527,864 S 54,990,277 S 51,249,011 S 99,667,055 S 89,776,875
The restricted portion of the City of Chubbuck's net position, $164,600, represents resources that
are subject to external restriction on how they may be used. The remaining balance of
unrestricted net position $5,904,411, may be used to meet the City's ongoing obligation to citizens and
creditors.
As of September 30, 2023, the City can report positive balances in all three categories of net position,
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, 82 percent of the total liabilities are made up of noncurrent
liabilities. The decrease of 6 percent in total liabilities, compared to the previous year, is due to a
decrease in unearned revenue, bonds payable, notes payable, and net pension liabilities.
"
Governmental activities. Governmental activities' key elements are broken down in the following
charts. The general activities increased net position by $6,148,914, and the business -type activities
increased net position by $3,741,266.
The City of Chubbuck's direct charges to users of governmental services totaled $655,506. These charges
are for park rentals, building permits and other fees related to public safety and administration. The
general government accounts for 91 percent of the total charges for services. Public safety includes the
fire and police department and accounts for 5 percent of total charges for services.
Below is summary of the City of Chubbuck's Changes in Net Position.
City of Chubbuck's Changes in Net Position
NET POSITION beginning 38,527,864 31,549,956 51,249,011 47,479,735 89,776,875 79,029,691
NET POSITION ending $44,676,778 $38,527,864 $54,990,277 $51,249,011 $99,667,055 $ 99,776,875
17
Governmental Activities
Business Activities
Total
2023
2422
2423
2422
2023
2022
REVENUES
Program revenues:
Ch arges; for services
$ 655,506
$ 576,393
$13,165,350
$11,944,774
$13,820,856 $
12,521,167
Operating grants and contributions
3,347,448
1,034,960
17,955
-
3,365,363
1,034,960
Capital grants and contributions
2,211,701
5,322,013
1,540,842
3,285,586
3,752,543
8,607,599
General revenue:
Property taxes
7,132,094
7,001,435
-
7,132,094
7,001,435
Franchise fees and intergovernmental
3,324,267
3,478,388
-
3,324,267
3,478,388
Other
1,035,127
673,581
453,114
(147,660)
1,488,241
525,921
Total Revenues
17,706,103
18,086,770
15,177,261
15,082,700
32,883,364
33,169,470
EXPENSES
General government
1,309,632
1,153,148
-
-
1,309,632
1,153,148
Publicsafety
6,309,599
6,089,013
6,309,599
6,089,013
Highway, streets and roads
2,490,247
2,121,982
2,490,247
2,121,982
Parks and recreation
913,966
879,101
913,966
879,101
Community services
533,745
865,619
533,745
865,618
Water
-
-
3,514,768
3,494,695
3,514,768
3,494,695
Sewer
-
-
3,872,609
3,707,757
3,872,609
3,707,757
Sanitation
-
-
2,449,593
2,460,458
2,449,593
2,460,458
Health plan trust
-
-
1,595,925
1,546,714
1,595,925
1,646,714
CIAVVWC Authority
-
-
3,100
3,800
3,106
3,800
Total expenses
11,557,189
11,108,862
11,435,995
11,313,424
22,993,184
22,422,286
NET CHANGE IN NET POSITION
6,148,914
6,977,968
3,741,266
3,769,276
9,890,180
10,747,184
NET POSITION beginning 38,527,864 31,549,956 51,249,011 47,479,735 89,776,875 79,029,691
NET POSITION ending $44,676,778 $38,527,864 $54,990,277 $51,249,011 $99,667,055 $ 99,776,875
17
Revenue by Source - Government Activities
Other � 1.035.127 .6%
Charges for services
$655,506 , 4%
Operating grants and
contributions
3,347,408 , 190,'0
Franchise fees and
intergovernmental
3,324,267, 19%
Capital grants and
contributions
$ 2,211,701, 12%
Property taxes $ 7,132,094,
409a
Expenses and Program Revenues — Governmental Activities
7,000,000
6,000,000
5,000,000
4,000,000
3,000,000
2,000,000
1,000,000
KA
o,�i e`\a
59
�e�eta �O�rec
a ' a C.o
4\
■ Expenses
■ Revenue
• The majority of the City of Chubbuck's general governmental activities' revenue is received from
property tax of 40 percent.
• When all taxes, franchise fees, and intergovernmental revenues are added together, they make
up 96 percent of the budget.
When revenues are compared to expenses, it shows that most of the City of Chubbuck's
programs are not 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 2023.
No extraordinary expenses were paid, or revenues were received during the year.
The most significant major fund in the City is the general fund. The notable transactions within the
general fund this year mainly consisted of law enforcement expenses, fire department expenses, and
street maintenance.
19
Business -type activities. Businesses -type activities' key elements are broken down in the following
charts.
$7,000,000
$6.000.000
$5,000,000
$4,000,000
$3.000.000
$2,0D0,000
$1,000,000
Revenue by Source - Business Type Activities
Otter 453,114 2.9955
Capital grants and
dedicated as
$1,558,797 10.
Charges for services
$13,155,350 86.74%
UI
Water Server Sa -]"tat"v-1
Revenue
■ Expense
• One of the major sources of the City of Chubbuck's business -type activities' revenue is received
from service revenue. 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 the City of Chubbuck's business -
type activities are self-supporting.
20
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. 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 $8,121,697. Of which $5,629,923 of this total is unassigned fund balance.
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. The total governmental operating revenues were more
than operating expenditures by $430,824. With the other financing sources and uses, the net change in
the governmental funds increased $5,212,855 for fiscal year 2023. The net change in the highway,
streets, and roads fund was $0. As a measure of liquidity, it may be useful to compare both total
unassigned fund balance and total fund expenditures. The total unassigned fund balance represents 37
percent of total governmental 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: $5,156,911, Sewer:
$2,931,686, and Sanitation: $865,292. The water fund had an increase in net position of $1,403,761; the
sewer fund had an increase in net position of $2,134,352; and the sanitation fund had a decrease in net
position of $(96,400).
General Fund Budgetary Highlights
The City made no revision to the original appropriations approved by the City Council. The general
fund's actual revenues and expenditures were greater than the budget. The difference accounts for a
$4,486,800 increase in the general fund balance. The major variances in expenditures were due to an
increase in the general government and capital outlays expenditures. The highway, streets and roads
fund actual revenues and expenditure were less than the budget. The difference accounts for a $0
change in the highway, streets, and roads fund balance. This was a result after a transfer out of
$95,732.
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, 2023, amounts to $102,716,225 (net of accumulated depreciation).
This investment in capital assets includes land, vehicles, equipment, other improvements, and
infrastructure. The total increase in the City of Chubbuck's investment in capital assets for the fiscal year
was $9,360,972 . The increase in assets includes development contributions of $3,752,542.
21
City of Chubbuck's Capital Assets
Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 42-43 of
the City's financials.
Long-term debt. At the end of the current fiscal year, the City of Chubbuck had a total long-term debt
outstandi ng of $19,131,106. Of this amount, $9,122,101 is comprised of notes to the Department of
Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a
remaining balance of $460,000 used for purchasing water rights. The City had a DEQ note payable for
water tank repairs with a remaining balance of $58,821, a note payable for water distribution with
remaining balance of $8,176,513, and a note payable for sanitation system setup with remaining
balance of $400,781.
In the State of Idaho statutes section 50-3108, the State of Idaho mandates a general obligation debt
limit of 9 percent of the assessed market value of taxable property within the City boundaries. The City
of Chubbuck currently has general obligation debt with a remaining balance of $912,890. The limit
totaled $165,954,327 based on 2023's actual assessed values of 1,843,936,970 . Therefore $165,041,437
is available for future general obligation indebtedness. Additional information on the City of Chubbuck's
long-term debt can be found in note 11 on pages 44-46 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 any questions about this report or need any additional financial information, contact the
Treasurer at 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400.
22
Governmental Activities
Business Activities
Tatal
2023
2022
2023
2022
2023
2022
Land
5 3,207,337
S 2,817,480
5 2,159,817
S 2,159,817
S 5,367,154
S 4,977,297
Building & Improvements
7,919,735
7,919,735
53,523,799
51,568,633
61,443,534
59,499,368
Vehicles&Equipment
5,188,961
5,258,000
8,986,312
8,624,516
14,175,273
13,882,516
Infrastructure
23,227,124
21,965,166
-
-
23,227,124
21,965,166
Work inRragress
19,950,734
14,583,066
989,097
989,097
20,939,831
15,572,163
Water Rights
-
-
2,421,167
2,421,167
2,421,167
2,421,167
Total
5 59,493,891
S 52,543,447
S-68, 080.192
S 65,763,230
S 127,574,083
S 118,306,677
Additional information on the City of Chubbuck's capital assets can be found in note 9 on page 42-43 of
the City's financials.
Long-term debt. At the end of the current fiscal year, the City of Chubbuck had a total long-term debt
outstandi ng of $19,131,106. Of this amount, $9,122,101 is comprised of notes to the Department of
Environmental Quality for wastewater infrastructure. Long-term debt also includes bonds with a
remaining balance of $460,000 used for purchasing water rights. The City had a DEQ note payable for
water tank repairs with a remaining balance of $58,821, a note payable for water distribution with
remaining balance of $8,176,513, and a note payable for sanitation system setup with remaining
balance of $400,781.
In the State of Idaho statutes section 50-3108, the State of Idaho mandates a general obligation debt
limit of 9 percent of the assessed market value of taxable property within the City boundaries. The City
of Chubbuck currently has general obligation debt with a remaining balance of $912,890. The limit
totaled $165,954,327 based on 2023's actual assessed values of 1,843,936,970 . Therefore $165,041,437
is available for future general obligation indebtedness. Additional information on the City of Chubbuck's
long-term debt can be found in note 11 on pages 44-46 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 any questions about this report or need any additional financial information, contact the
Treasurer at 290 E. Linden Ave, Chubbuck, ID 83202, telephone (208)237-2400.
22
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
SEPTEMBER 30, 2023
23
See accompanying notes to financial statements
Governmental
Business -type
Development
Activities
Activities
Total
Authority
ASSETS
Current assets
Cash and cash equivalents
$ 11,471,235
$ 20,864,513
$ 32,335,748
$ 2,524,950
Property taxes receivable
579,702
-
579,702
16,706
Intergovernmental receivables
483,397
1,845
485,242
-
Interest receivable
20,687
3,342
24,029
Lease receivable
122,870
-
122,870
Grant receivable
350,000
3,078
353,078
Internal balances due to/from
(3,341,635)
3,341,635
-
-
Prepaid expenses
-
37,456
37,456
3,593
Other accounts receivable
35,526
954,427
989,953
-
9,721,782
25,206,296
34,928,078
2,545,249
Noncurrent assets
Restricted assets
Bond reserves
-
164,600
164,600
-
Utility deposits
543,682
543,682
Investments
-
2,334,420
2,334,420
Lease and subscripton assets
239,153
55,518
294,671
Accumulated amortization of assets
(49,716)
(23,621)
(73,337)
Capital assets
59,493,891
68,080,192
127,574,083
1,260,321
Accumulated depreciation
(10,692,128)
(14,165,730)
(24,857,858)
-
48,991,200
56,989,061
105,980,261
1,260,321
58,712,982
82,195,357
140,908,339
3,805,570
DEFERRED OUTFLOWS
Pension
1,729,597
706,567
2,436,164
-
LIABILITIES
Current liabilities
Accounts payable
1,087,398
466,057
1,553,455
2,127
Accrued payroll
88,380
47,992
136,372
-
Accrued bond interest
-
1,633
1,633
Interest payable
3,343
1,071,946
1,075,289
Unearned revenue
236,881
120,409
357,290
Current portion compensated absences
97,523
30,904
128,427
-
Current portion of bonds payable
-
152,355
152,355
56,198
Current portion of long-term debt
89,750
1,325,780
1,415,530
-
Health Claims incurred but not reported
-
108,801
108,801
Utility deposits
-
543,682
543,682
-
1,603,275
3,869,559
5,472,834
58,325
Noncurrent liabilities
Bonds payable, net unamortized premium
-
329,711
329,711
1,292,891
Notes payable
823,140
16,432,435
17,255,575
-
Lease and subscription obligation
156,987
30,007
186,994
Accrued compensated absences
390,092
123,619
513,711
Net pension liabilities
4,325,243
1,766,927
6,092,170
-
5,695,462
18,682,699
24,378,161
1,292,891
7,298,737
22,552,258
29,850,995
1,351,216
DEFERRED INFLOWS
Certificate of participation
8,467,064
5,359,389
13,826,453
-
NET POSITION
Net investment in capital assets
48,801,763
44,796,281
93,598,044
-
Restricted
-
164,600
164,600
2,368,237
Unrestricted
(4,124,985)
10,029,396
5,904,411
86,117
$ 44,676,778
$ 54,990,277
$ 99,667,055
$ 2,454,354
23
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF ACTIVITIES
FOR THE YEAR ENDED SEPTEMBER 30, 2023
Business -type activities
Water
3,514,768
3,540,200
Program Revenues
Total
1,116,074
250,217
Sewer
Operating
Capital
Net
468,155
1,944,445
Charges for
Grants and
Grants and
(Expense) Development
-
Expenses
Services
Contributions
Contributions
Revenue Authority
Functions/Programs
-
-
396,855
2,805,768
CIAWWC Authority
Primary Government:
-
-
-
(3,100)
89,776,875
Governmental activities:
11,435,995
13,165,350
17,955
1,540,842
3,288,152
General government
$ 1,309,632
$ 598,552
$ 3,324,359
$ -
$ 2,613,279 $
Law enforcement
4,088,400
35,186
14,965
-
(4,038,249)
Fire control
2,221,199
72
-
-
(2,221,127)
Highway, streets, and roads
2,490,247
-
-
2,211,701
(278,546)
Parks and recreation
913,966
21,696
-
-
(892,270)
Community services
508,245
-
-
-
(508,245)
Other special funds
25,500
-
8,084
-
(17,416)
Authority
11,557,189
655,506
3,347,408
2,211,701
(5,342,574)
Business -type activities
Water
3,514,768
3,540,200
17,955
1,072,687
1,116,074
250,217
Sewer
3,872,609
5,348,899
-
468,155
1,944,445
442,312
Sanitation
2,449,593
2,283,471
-
-
(166,122)
612,016
Health plan trust
1,595,925
1,992,780
-
-
396,855
2,805,768
CIAWWC Authority
3,100
-
-
-
(3,100)
89,776,875
1,451,614
11,435,995
13,165,350
17,955
1,540,842
3,288,152
Total primary government
$ 22,993,184
$ 13,820,856
$ 3,365,363
$ 3,752,543
$ (2,054,422)
$
Component Unit:
Chubbuck Development Authority
$ 1,803,028
-
-
$ (1,803,028)
$ 1,803,028
-
$ (1,803,028)
General
Business -type
Development
Activities
Activities
Total
Authority
Net (expense)/revenue
General revenues
Property taxes
Franchise fees
Intergovernmental income
Interest income
Gain from asset disposal
Other revenue
NET CHANGE IN NET POSITION
BEGINNING NET POSITION
ENDING NET POSITION
$ (5,342,574) $ 3,288,152 $ (2,054,422) $ (1,803,028)
7,132,094
-
7,132,094
2,722,800
250,217
-
250,217
-
3,074,050
-
3,074,050
-
404,942
442,312
847,254
50,894
18,169
-
18,169
-
612,016
10,802
622,818
32,074
11,491,488
453,114
11,944,602
2,805,768
6,148,914
3,741,266
9,890,180
1,002,740
38,527,864
51,249,011
89,776,875
1,451,614
$ 44,676,778 $ 54,990,277 $ 99,667,055 $ 2,454,354
24
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
BALANCE SHEET
GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
Highway,
Streets, Other
General and Roads Governmental
Fund Fund Funds Total
ASSETS
Cash $ 7,800,235
$ 1,179,226 $ 2,491,774
$ 11,471,235
Accounts receivable 6,826
28,700
35,526
Property taxes receivable 566,861
12,841
579,702
Intergovernmental receivables 173,156
305,937
479,093
Interest receivable 20,687
-
20,687
Lease receivable 122,870
122,870
Grant receivable 350,000
-
350,000
$ 9,040,635
$ 1,526,704 $ 2,491,774
$ 13,059,113
LIABILITIES
Accounts payable $ 633,562
$ 453,836 $
$ 1,087,398
Accrued payroll 75,732
12,648
88,380
Accrued compensated absences 82,690
14,833
97,523
Interest Payable -
3,343
3,343
Due to other funds -
3,341,635
3,341,635
791,984
3,826,295
4,618,279
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues - taxes 71,563
10,693
82,256
Unavailable revenues - prepaid 119,150
-
119,150
Unavailable revenues - leases 117,731
-
117,731
308,444
10,693
319,137
FUND BALANCES
Committed -
- 2,491,774
2,491,774
Unassigned 7,940,207
(2,310,284) -
5,629,923
7,940,207
(2,310,284) 2,491,774
8,121,697
$ 9,040,635
$ 1,526,704 $ 2,491,774
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 $10,692,128.
48,801,763
Lease assets are not reported in the funds, net of amortization
189,437
Unavailable revenue represents amounts that were not available to fund current
expenditures and therefore are not reported in the funds:
Property tax
82,256
Deferred outflows and inflows of resources related to pensions and certificate of participation
are applicable to future periods and, therefore, are not reported in the fund:
Deferred outflows of resources related to pensions
1,729,597
Deferred inflows of resources related to pensions
-
Deferred inflows of resources related to certificates of participation
(8,467,064)
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.
4,304
Long-term liabilities are not due and payable in the current period and therefore are not
reported in the funds:
Lease liability
(156,987)
Note payable
(912,890)
Accrued compensated absences
(390,092)
Net pension asset/(liability)
(4,325,243)
Net position of governmental funds
$ 44,676,778
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, 2023
REVENUES
Property taxes
Franchise fees
Intergovernmental income
Court Revenue
Parks revenue
Licenses, permits and fees
Grants
Fire protection and prevention
Law enforcement
Leases and rents
Interest income
Donations
Charges for services
Other revenues
EXPENDITURES
General government
Law enforcement
Fire control
Highway, streets, and roads
Parks and recreation
Community services
Other purchased services
Capital outlays
Lease and subscription capital outlays
Debt service
Equipment note payable principle expense
Principal lease and subscription expense
Interest expense
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Proceeds from debt
Proceeds from certificate of participation
Proceeds from leases and subscriptions
Proceeds from sale of assets
Transfers in (out)
NET CHANGE IN FUND BALANCES
BEGINNING FUND BALANCE
ENDING FUND BALANCE
26
See accompanying notes to financial statements
Highway,
Streets,
Other
General
and Roads
Governmental
Fund
Fund
Funds
Total
$ 6,216,172
$ 943,665
$ -
$ 7,159,837
250,217
-
-
250,217
2,002,540
1,071,510
-
3,074,050
35,076
-
-
35,076
18,224
-
-
18,224
461,613
-
-
461,613
3,246,648
92,676
-
3,339,324
72
-
-
72
110
-
-
110
136,939
-
-
136,939
337,454
29,036
38,452
404,942
8,084
-
-
8,084
3,472
-
-
3,472
45,648
18,895
798,237
862,780
12,762,269
2,155,782
836,689
15,754,740
1,050,464
-
-
1,050,464
3,970,167
-
-
3,970,167
1,972,237
-
-
1,972,237
-
1,958,654
-
1,958,654
775,584
-
-
775,584
482,760
-
-
482,760
-
-
25,500
25,500
4,635,222
97,926
85,134
4,818,282
88,628
9,419
-
98,047
87,110
-
-
87,110
54,474
110
-
54,584
27,167
3,360
-
30,527
13,143,813
2,069,469
110,634
15,323,916
(381,544)
86,313
726,055
430,824
1,000,000
-
-
1,000,000
3,665,816
-
-
3,665,816
88,627
9,419
98,046
18,169
-
-
18,169
95,732
(95,732)
--
4,868,344
(86,313)
-
4,782,031
4,486,800
-
726,055
5,212,855
3,453,407
(2,310,284)
1,765,719
2,908,842
$ 7,940,207
$ (2,310,284)
$ 2,491,774
$ 8,121,697
26
See accompanying notes to financial statements
(Continued)
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
Tnta I
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 $ 5,212,855
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 2,211,701
Capital asset purchases capitalized 4,818,282
Depreciation expense (1,129,274)
5,900,709
The net affect of sales transactions involving capital assets
The net affect of lease agreements that are reported in the Statement of Activities, but do not
provide current financial resources and are not reported in the governmental funds. 12,736
Unavailable revenues are not recorded as current period receipts (27,743)
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 (250,764)
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 (19,774)
Net proceeds from debt (912,890)
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 (448,429)
Governmental funds report proceeds from certificate of participation as other financing sources.
However, in the Statement of Net Activities they are reported as lease expense net of amortized
deferred inflows:
Certificate of participation proceeds in excess of deferred inflows (3,317,786)
Change in net position $ 6,148,914
27
See accompanying notes to financial statements
ASSETS
Current assets
Cash and cash equivalents
Accounts receivable
Grant receivable
Interest receivable
Prepaid expense
Noncurrent assets
Restricted assets
Bond reserves
Utility deposits
Investments
Capital assets
Accumulated depreciation
Lease and subscription assets
Accumulated amortization
Due from other funds
DEFERRED OUTFLOWS
Pension
LIABILITIES
Current Liabilities
Accounts payable
Payroll payable
Health Claims incurred but not reported
Unearned contributions
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
Notes payable
Compensated absences
Lease and subscription liabilities
Net pension liabilities
DEFERRED INFLOWS
Pension
Certificate of participation
NET POSITION
Net investment in capital assets
Restricted for bond service
Unrestricted
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
PROPRIETARY FUNDS
SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
1,879, 359 1,886,505 1,593,525
18,408,741 22,036,128 4,347,761
164,600 -
5,156,911 2,931,686 865,292 1,079,811
$ 23,730,252 $ 24,967,814 $ 5,213,053 $1,079,811 $
Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities.
28
See accompanying notes to financial statements
- 21,977
5,359,389 5,671,131
44,792,630 43,392,235 3,651 4,938
164,600 168,950 - -
10,033,700 7,591,177 346,779
54,990,930 $ 51y362 $ 3,651 $ 351,717
(653)
$ 54,990,277
Internal
Internal
Health Plan
Service
Service
Water
Sewer
Sanitation
Trust CIAWWCA
Total
2022
Funds 2023
Funds 2022
$ 6,375,002
$10,927,393
$2,290,338
$1,271,780 $
$20,864,513
$ 18,233,162
$ -
$346,779
352,396
406,228
195,803
954,427
943,415
6,149
17,604
3,078
-
-
3,078
-
-
-
-
3,342
-
3,342
3,474
37,456
37,456
13,632
6,730,476
11,336,963
2,486,141
1,309,236
21,862,816
19,193,683
6,149
364,383
164,600
-
-
-
164,600
168,950
-
-
539,372
3,490
820
543,682
476,085
1,889,355
-
445,065
2,334,420
2,269,090
-
-
32,953,370
27,366,821
7,498,916
67,819,107
65,502,145
261,085
261,085
(5,827,229)
(5,330,693)
(2,750,374)
(13,908,296)
(11,863,213)
(257,434)
(256,147)
18,910
18,909
17,699
55,518
17,121
(8,057)
(8,056)
(7,508)
(23,621)
(3,928)
3,341,635
3,341,635
3,473,571
29,730,321
25,392,106
5,204,618
60,327,045
60,039,821
3,651
4,938
36,460,797
36,729,069
7,690,759
1,309,236
82,189,861
79,233,504
9,800
369,321
243,605
225,621
237,341
-
706,567
998,160
-
-
63,971
323,825
71,897
215
459,908
413,535
6,149
17,604
17,166
14,892
15,934
-
47,992
40,937
-
-
-
-
-
108,801
108,801
93,540
-
-
-
120,409
120,409
102,878
12,988
12,293
5,623
-
30,904
28,214
152,355
-
152,355
152,355
1,633
-
-
1,633
1,996
373,752
852,545
99,483
1,325,780
970,823
1,070,738
-
1,208
1,071,946
860,450
539,372
3.490
820
-
543.682
476.085
-
-
2,231,975
1,207,045
194,965
229,425
3,863,410
3,140,813
6,149
17,604
329,711
-
-
329,711
482,066
-
-
7,861,582
8,269,555
301,298
16,432,435
17,757,850
51,952
49,174
22,493
123,619
112,853
10,382
10,382
9,243
30,007
13,164
609,189
564,215
593,523
1,766,927
1,879,448
8,862,816
8,893,326
926,557
18,682,699
20,245,381
11,094,791
10,100,371
1,121,522
229,425
22,546,109
23,386,194
6,149
17,604
1,879, 359 1,886,505 1,593,525
18,408,741 22,036,128 4,347,761
164,600 -
5,156,911 2,931,686 865,292 1,079,811
$ 23,730,252 $ 24,967,814 $ 5,213,053 $1,079,811 $
Adjustment to reflect the consolidation of internal service fund activities related to enterprise activities.
28
See accompanying notes to financial statements
- 21,977
5,359,389 5,671,131
44,792,630 43,392,235 3,651 4,938
164,600 168,950 - -
10,033,700 7,591,177 346,779
54,990,930 $ 51y362 $ 3,651 $ 351,717
(653)
$ 54,990,277
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
CAPITAL CONTRIBUTIONS
Developer contributions
CHANGES IN NET POSITION
1,072,687 468,155
1,072,687 468,155
1,403,761 2,134,352
(96,400) 396,855
1,540,842 3,057,586
1,540,842 3,057,586
3,838,568 3,753,706
(348,066) 28,347
BEGINNING NET POSITION 22,326,491 22,833,462 5,309,453 682,956 51,152,362 47,398,656 351,717 323,370
ENDING NET POSITION $ 23,730,252 $24,967,814 $ 5,213,053 $=160
79,811 �� $54,9906930 $ 51,152,362 $ 3.651 $ 351,717
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (97,302)
Change in net position of business -type activities
29
See accompanying notes to financial statements
$ 3,741,266
Internal
Internal
Health Plan
Service
Service
Water
Sewer
Sanitation
Trust
CIAWWCA
Total
2022
Funds 2023
Funds 2022
OPERATING REVENUES
Service revenue
$ 3,058,134
$ 5,348,899
$ 2,283,471
$ 1,992,780
$
$12,683,284
$ 11,310,353
$ 102,173
$ 331,798
Revenue used as security
for revenue bond:
Charges for services
482,066
482,066
634,420
3,540,200
5,348,899
2,283,471
1,992,780
13,165,350
11,944,773
102,173
331,798
OPERATING EXPENSES
Administration
-
-
-
56,799
56,799
54,322
-
-
Salaries and wages
766,941
666,227
717,258
-
2,150,426
2,062,374
Personnel benefits
336,391
306,468
349,535
1,140,432
2,132,826
2,289,813
-
Repairs and maintenance
270,673
172,418
690,680
-
1,133,771
1,209,271
6,432
13,766
Equipment and supplies
431,137
129,346
291,041
851,524
892,491
86,973
279,023
Travel, meetings, and training
24,740
11,827
5,594
42,161
25,004
15
48
Telephone and communications
9,508
6,165
8,288
23,961
22,518
-
-
Utilities
241,100
55,009
10,821
306,930
265,568
8,753
9,978
Treatment - Pocatello
-
1,624,222
-
1,624,222
1,511,891
-
-
Certificate of participation payment
40,416
40,570
34,270
-
115,256
236,203
-
Other purchased services
52,335
-
-
348,000
400,335
376,247
349,584
Professional services
70,216
41,734
3,128
50,694
3,100
168,872
99,229
-
Bad debt
5,539
563
188
-
-
6,290
5,407
-
-
Depreciation
931,027
811,256
316,826
2,059,109
1,903,510
1,287
1,287
Lease and subscription amortization
6,742
6,742
6,211
19,695
3,928
3,186,765
3,872,547
2,433,840
1,595,925
3,100
11,092,177
10,957,776
453,044
304,102
OPERATING INCOME
353,435
1,476,352
(150,369)
396,855
(3,100)
2,073,173
986,997
(350,871)
27,696
NONOPERATING REVENUE (EXPENSE)
Interest income
120,894
184,408
51,228
-
356,530
33,070
2,805
651
Investment income
67,334
-
15,106
82,440
(196,429)
-
-
Note interest income
-
3,342
-
3,342
3,474
Bond interest expense
(16,232)
-
(16,232)
(20,445)
Note interest expense
(214,407)
-
(15,696)
(230,103)
(350,676)
Lease and subscription interest expense
(62)
(62)
(57)
(181)
(96)
Grant revenue
17,955
-
-
17,955
228,000
Miscellaneous revenue
2,157
2,157
3,388
3,100
10,802
4,599
Gain (Loss) from asset disposal
-
7 626
22,361
189,845
53,969
3,100
224,553
290877
2,805
651
CAPITAL CONTRIBUTIONS
Developer contributions
CHANGES IN NET POSITION
1,072,687 468,155
1,072,687 468,155
1,403,761 2,134,352
(96,400) 396,855
1,540,842 3,057,586
1,540,842 3,057,586
3,838,568 3,753,706
(348,066) 28,347
BEGINNING NET POSITION 22,326,491 22,833,462 5,309,453 682,956 51,152,362 47,398,656 351,717 323,370
ENDING NET POSITION $ 23,730,252 $24,967,814 $ 5,213,053 $=160
79,811 �� $54,9906930 $ 51,152,362 $ 3.651 $ 351,717
Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds (97,302)
Change in net position of business -type activities
29
See accompanying notes to financial statements
$ 3,741,266
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
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 change in interfund loans
Proceeds from grants
Proceeds from deposits (payments)
Net cash (used) in noncapital financing activities
CASH FLOW FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Principal paid on debt
Interest paid
Proceeds from certificate of participation
Proceeds from asset disposals
Principal and interest paid on lease
Purchase of capital assets
Interest received
Net cash provided (used) in capital and related
financing activities
CASH FLOW FROM INVESTING ACTIVITIES
Cash paid from investments
Interest proceeds
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
Internal Internal
Health Plan Service Service
Water Sewer Sanitation Trust CIAWWCA Total 2022 Funds 2022 Funds 2021
$ 3,532,227
$ 5,301,669
$2,271,616
$2,022,611 $ - $13,128,123
$11,861,024 $ 116,433 $314,845
(1,122,978)
(2,038,877)
(1,042,885)
(1,581,158) (3,100) (5,788,998)
(6,449,113) (463,212) (314,194)
(1,052,247)
(906,919)
(1,006,049)
- - (2,965,215)
(2,971,418) -
1,357,002
2,355,873
222,682
441,453 (3,100) 4,373,910
2,440,493 (346,779) 651
-
131,936
4,741
- 131,936
131,805
14,877
-
-
3,100 17,977
231,800
67,287
190
120
- 67,597
71,004
82,164
132,126
120
3,100 217,510
434,609
(167,088)
(852,545)
(95,825)
- (1,115,458)
(1,314,415)
(26,524)
-
(16,033)
(42,557)
(50,798)
(109,318)
(109,733)
(92,691)
(311,742)
368,762
$ 7,078,974
$10,930,883
$2,291,158 $ 1,271,780 $
$21,572,795
7,626
(7,265)
(7,264)
(7,206)
(21,735)
(4,053)
(62,706)
(62,748)
(664,692)
(790,146)
(454,352)
(372,901)
(1,032,290)
(876,447)
(2,281,638)
(1,447,230)
12,369
-
4,741
17,110
123,051
190,039
54,616
367,706
(432,281)
135,420
190,039
59,357 -
384,816
(432,281) -
1,201,685
1,645,748
(594,288) 441,453
2,694,598
995,591 (346,779) 651
5,877,289
9,285,135
2,885,446 830,327
18,878,197
17,882,606 346,779 346,128
$ 7,078,974
$10,930,883
$2,291,158 $ 1,271,780 $
$21,572,795
$ 18,878,197 $ $ 346,779
$ 6,375,002 $10,927,393 $2,290,338 $ 1,271,780 $ $20,864,513 $18,233,162 $ $ 346,779
703,972 3,490 820 708,282 645,035 -
$ 7,078,974 $10,930,883 $2,291,158 $ 1,271,780 $ $21,572,795 $ 18,878,197 $ $ 346,779
30
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - PROPRIETARY FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
RECONCILIATIONS OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
31
See accompanying notes to financial statements
Internal
Internal
Health Plan
Service
Service
Water
Sewer
Sanitation
Trust CIAWWCA
Total
2022
Funds 2022
Funds 2021
OPERATING INCOME
$ 353,435
$ 1,476,352
$ (150,369)
$ 396,855 $ (3,100)
$ 2,073,173
$ 986,998
$ (348,066)
$ 28,347
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation and amortization
937,769
817,998
323,037
-
2,078,804
1,907,438
1,287
1,287
Pension expense
42,049
56,066
58,979
157,094
256,574
-
-
Bad debt expense
5,539
563
188
-
6,290
5,407
-
(Increase) decrease in assets
Accounts receivable
(7,973)
(47,230)
(11,855)
49,756
(17,302)
(68,167)
11,455
(17,604)
Prepaid expense
13,632
-
-
(37,456)
(23,824)
-
Increase (decrease) in liabilities
Accounts payable
3,515
42,414
938
32,298
79,165
(551,641)
(11,455)
(11,379)
Payroll payable
2,334
2,034
2,687
-
7,055
(74,402)
Accrued compensated absences
6,702
7,676
(923)
13,455
(21,714)
Total adjustments
1,003,567
879,521
373,051
44,598
2,300,737
$1,453,495
1,287
(27,696)
NET CASH PROVIDED BY OPERATING ACTIVITIES
$ 1,357,002
$ 2,355,873
$ 222,682
$ 441,453 $ (3,100)
$ 4,373,910
$ 2,440,493
$ (346,779)
$ 651
31
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2022
Net Position
Held in trust $ 14,309 $ 33,105
32
See accompanying notes to financial statements
Recreation
Programs
Trust Fund
2023 2022
Assets
Cash
$ 14,309 $33,105
14,309 33,105
Liabilities
Accounts payable
- -
Net Position
Held in trust $ 14,309 $ 33,105
32
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, 2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
Additions
Boys registration
Girls registration
Tee/tiger registration
Boys sponsorship
Girls sponsorship
Other revenue
Total additions
Deductions
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 Trust
Fund 2023
2022
$ 19,940
$ 19,214
11,665
11,330
16,280
20,978
5,200
3,451
4,200
3,000
39
600
57,324
58,573
38,818
25,905
13,948
12,227
13,582
14,435
9,772
10,709
76,120
63,276
(18,796)
(4,703)
33,105
37,808
$ 14,309 $
33,105
33
See accompanying notes to financial statements
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 1 OF 16)
NOTE 1 - Summary of Sianificant Accountina Polici
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 96 with the exception of those standards not required to be implemented.
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 infrastructure, 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 City Clerk, City of Chubbuck, 290 E. Linden 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 (CIAWWCA) for the purpose of financing,
designing, acquiring, constructing, managing, and operating a sewage collection facility along with transmission mains and lift stations.
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 two -member board governs the Chubbuck Impact Area Wastewater Collection Authority with 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 were paid in full in 2022. During 2023, the operation of the Authority were
fully transferd to the City of Chubbuck.
B. Basis of Presentation
Government -wide Statements
The Statement of Net Position and Statement of Activities displays 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.
Fund Financial Statements
Fund financial statements of the reporting entity are organized into funds, each of which is considered to be separate accounting entity.
Each fund is accounted for by providing a separate set of self -balancing accounts that constitute its assets, liabilities, fund equity,
revenues, and expenditures. 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 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 of the individual governmental fund or enterprise fund are at least 5 percent of
the corresponding total for all governmental and enterprise funds combined.
Page 34
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 2 OF 16)
NOTE 1 - Summary of Sianificant Accountina Policies (Continued)
B. Basis of Presentation (continued)
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 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, sanitation, health plan trust, Chubbuck Impact Area Wastewater Collection Authority 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.
The City reports the following major proprietary funds:
The Water Fund accounts for the operations involved in collecting and distributing culinary water to the citizens of Chubbuck.
The Sewer Fund accounts for operations involved with the collection and treatment of sewer water.
The Sanitation Fund accounts for the operations for solid waste removal and disposal.
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.
Internal Service Funds
Central Garage
Each fund is allocated the costs of operations based on equipment maintenance and repairs to their departments.
Employee Health Benefit
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 remain low. The Employee Health Benefit Fund assists with costs like immunization, health screening, and weight
loss.
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 the
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.
Page 35
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 3 OF 16)
NOTE 1 - Summary of Sianificant Accountina Policies (Continued)
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:
a. All governmental funds utilize a "current financial resources" measurement focus. Only current financial assets and liabilities are
included on their balance sheets. Their operating statements present sources and uses of available spendable financial
resources during a given period. These funds use fund balance as their measure of available spendable financial resources at
the end of the period.
b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting objectives of this measurement focus
are the determination of operating income, changes in net position (or cost recovery), financial position, and cash flows. All assets
and liabilities (whether current or noncurrent) associated with their activities are reported. Proprietary fund equity is classified as
net position.
Basis of Accounting
In the government -wide Statement of Net Position and Statement of Activities, both governmental and business -like activities are
presented using the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when earned and
expenses are recorded when the liability is incurred or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities
resulting from exchange and exchange -like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds are presented on the modified accrual basis of accounting. Under this modified
accrual basis of accounting, revenues are recognized when "measurable and available." Measurable means knowing or being able to
reasonably estimate the amount. Available means collectible within the current period or within sixty days after year end. Expenditures
(including capital outlay) are recorded when the related fund liability is incurred, except for general obligation bond principal and interest
which are reported when due.
All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting, revenues are recognized when
earned and expenses are recorded when the liability is incurred or economic asset used.
The effect of interfund activity has been eliminated from the government -wide financial statements
D. Budgets and Encumbrances
Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are 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.
Page 36
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 4 OF 16)
NOTE 1 - Summary of Sianificant Accountina Policies (Continued)
F. Fair Value Measurements of Assets and Liabilities
GAAP defines fair value as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction
between market participants at the measurement date. GAAP establishes a fair value hierarchy for inputs used in measuring fair value
that maximizes the use of observable inputs and minimizes the use of unobservable inputs by requiring that the most observable inputs
be used when available. Observable inputs are those that market participants would use in pricing the asset or liability based on market
data obtained from sources independent of the City. Unobservable inputs reflect the City's assumptions about the inputs market
participants would use in pricing the asset or liability based on the best information available. The fair value hierarchy is categorized into
three levels based on the inputs as follows:
Level 1 - Valuations based on quoted prices in active markets for identical assets or liabilities that City has the ability to access. Since
valuations are based on quoted prices that are readily and regularly available in an active market, valuation of these assets and
liabilities does not require a significant degree of judgement.
Level 2 - Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either
directly or indirectly.
Level 3 - Valuations based on inputs that are unobservable, that is, inputs that reflect the City's own assumptions.
G. 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.
H. Restricted Assets
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.
Page 37
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 5 OF 16)
NOTE 1 - Summary of Sianificant Accounting Policies (Continued)
Lessor/Lessee Leases
The financial statements include the adoption of GASB Statement No. 87 Leases, and GASB Statement No. 96 Subscriptions. The
primary objective of these statements are to enhance the relevance and consistencesy of information about the City's leasing and
subscribing activities. These statements establish a model for lease and subscription accounting based on the principle that these
activities are financing the right to use an underlying asset. Under these Statements, a lessee or subscriber is required to recognize a
lease or subscription liability and an intangible right -to -use lease or subscription asset, and a lessor is required to recognize a lease
receivable and a deferred inflow of resources.
J. 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, capital subscriptions, 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.
K. 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.
L. 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.
M. 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.
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.
Page 38
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 6 OF 16)
NOTE 1 - Summary of Sianificant Accountina Policies (Continued)
M. Equity Classifications (continued)
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.
N. 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.
O. 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 - Leaal Compliance - Budaets
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
$ 164,600
543,682
$ 708,282
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 $543,682 at year-end.
NOTE 4 - Property Tax
Bannock County has the responsibility of assessing and collecting all property taxes. Taxes levied for the year are payable in two
installments due December 20th of the current year and June 20th of the following year. The County remits property taxes collected to
the City monthly.
Property taxes are recognized as revenue when received for monthly reporting purposes. At year end, an accrual is made to recognize
property taxes receivable at year end. At year end, $579,702 in outstanding property taxes were expected to be collected and remitted
by the County.
NOTE 5 - Tax Abatements
The City has no tax abatement agreements as of September 30, 2023.
Page 39
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 7 OF 16)
NOTE 6 - Cash. Cash Eauivalents and Investments
Primary Government:
Deposits at year end consist of the following:
Deposits
Cash in bank - carrying amount
Balance
Restricted
$
708,282
Unrestricted
32,335,748
$
33,044,030
Fiduciary Fund:
Balance
Cash
$
14,309
$
14,309
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 $33,058,339 and the bank balance was
$29,027,828. 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 Citys deposits including the State of
Idaho, Local Government Investment Pool (LGIP) at year-end were not insured nor collateralized in the amount of $2,688,752.
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, 2023, the City had the following investments
Maturities
More Than
Fair Value No Maturity 1-10 Years 10 Years Moody/S&P
Money Funds $ 18,850 $ 18,850 $ - $ N/A
U.S. Government Bonds 2,334,420 - 2,334,420 Aaa / AA+
Total Investments $ 2,353,270 $ 18,850 $ 2,334,420 $
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
$ 2,524,950
Bank Deposits - Custodial Credit Risk for deposits is the risk that, in the event of bank failure, the government's deposits may not be
returned to it. At year-end the carrying amount and bank balance of CDA's deposits (cash and certificates of deposit) was $2,524,950.
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 fully
insured or collateralized.
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
Page 40
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 8 OF 16)
NOTE 6 - Cash and Cash Eauivalents 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 and Deferred Inflow of Resources -Leases
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 governmental -type funds are as follows:
Accounts Receivables
Allowance for Doubtful Accounts
Receivables as of year-end for the City's business -type funds are as follows
Highway, Streets,
General and Roads Total
9,012 28,700 37,712
(2,186) - (2,186)
6,826 28,700 35,526
The City, as a lessor, had entered into lease agreements involving infrastructure, land and structures, and buildings. As of 9/30/23, the
City had a lease receivable balance of $122,870. The balance of the deferred inflow of resources was $117,731, and the lease revenue
balance was $52,720.
Principal and Interest Expected to Maturity
Governmental Activities
CIAWWC
Water
Sewer
Sanitation Authority
Total
Accounts Receivables $ 368,097
$ 415,688 $
198,431 $
$ 982,216
Allowance for Doubtful Accounts (15,701)
(9,460)
(2,628)
(27,789)
$ 352,396
$ 406,228 $
195,803 $
$ 954,427
The City, as a lessor, had entered into lease agreements involving infrastructure, land and structures, and buildings. As of 9/30/23, the
City had a lease receivable balance of $122,870. The balance of the deferred inflow of resources was $117,731, and the lease revenue
balance was $52,720.
Principal and Interest Expected to Maturity
Governmental Activities
Lease Receivable
Governmental Activities
Deferred Inflow of Resources -Leases
Page 41
Beginning Ending
Balance Additions Reductions Balance
$ 137,472 $ 35,890 $ 50,492 $ 122,870
$ 137,472 $ 35,890 $ 50,492 $ 122,870
Beginning Ending
Balance Additions Reductions Balance
$ 134,560 $ 35,890 $ 52,719 $ 117,731
$ 134,560 $ 35,890 $ 52,719 $ 117,731
Governmental Activities
Principal
Interest
Fiscal Year
Payments
Payments Total
Payments
2024
$ 51,310
$ 1,289 $
52,599
2025
29,236
722
29,958
2026
7,437
560
7,997
2027
5,522
478
6,000
2028
5,604
396
6,000
2029 -2033
23,762
738
24,500
$ 122,871
$ 4,183 $
127,054
Governmental Activities
Lease Receivable
Governmental Activities
Deferred Inflow of Resources -Leases
Page 41
Beginning Ending
Balance Additions Reductions Balance
$ 137,472 $ 35,890 $ 50,492 $ 122,870
$ 137,472 $ 35,890 $ 50,492 $ 122,870
Beginning Ending
Balance Additions Reductions Balance
$ 134,560 $ 35,890 $ 52,719 $ 117,731
$ 134,560 $ 35,890 $ 52,719 $ 117,731
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 9 OF 16)
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. The City's investments in U.S. government bonds
were rated Aaa and AA+ by Moody's and Standard & Poor's Investor Services, respectively. Idaho law requires the City to obtain the
safest investment rated by a nationally recognized standard rating service.
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 Assets
A summary of aeneral capital assets at year end is as follows:
Nondepreciable assets
Land
Work in Process
Infrastructures
Buildings and Improvements
Vehicles and Equipment
Accumulated Depreciation
Beginning Ending
Balance Additions Deletions Balance
$ 2,817,480 $
389,857 $
$ 3,207,337
14,583,066
5,367,668
19,950,734
21,965,166
1,261,958
23,227,124
7,919,735
-
7,919,735
5,258,000
10,500
79,539 5,188,961
52,543,447
7,029,983
79,539 59,493,891
9,642,393
1,129,274
79,539 10,692,128
$ 42,901,054 $
5,900,709 $
- $ 48,801,763
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
A summary of general lease assets at year end is as follows:
Vehicles and Equipment
Accumulated Amortization
Beginning Ending
Balance Additions Deletions Balance
$ 2,159,817 $
- $
$ 2,159,817
2,421,167
-
2,421,167
989,097
-
- 989,097
51,568,633
1,955,166
53,523,799
8,624,516
375,824
14,028 8,986,312
65,763,230
2,330,990
14,028 68,080,192
12,119,360
2,060,398
14,028 14,165,730
$ 53,643,870 $
270,592 $
- $ 53,914,462
Beginning Ending
Balance Additions Deletions Balance
$ 141,108 $ 86,205 $ $ 227,313
141,108 86,205 227,313
7,869 36,664 $ 44,533
$ 133,239 $ 49,541 $ $ 182,780
A summary of proprietary type lease assets at year end is as follows:
Beginning Ending
Balance Additions Deletions Balance
Equipment $ 17,120 $ 3,829 $ $ 20,949
17,120 3,829 20,949
Accumulated Amortization 3,928 4,621 $ 8,549
$ 13,192 $ (792) $ $ 12,400
Page 42
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 10 OF 16)
NOTE 9 - Chanaes in Assets (Continued)
A summary of aeneral subscription assets at year end is as follows:
Beginning Ending
Balance Additions Deletions Balance
Software $ $ 11,840 $ $ 11,840
11,840 11,840
Accumulated Amortization 5,183 $ 5,183
$ $ 6,657 $ $ 6,657
A summary of proprietary type subscription assets at year end is as follows:
Beginning Ending
Balance Additions Deletions Balance
Software $ $ 34,568 $ $ 34,568
34,568 34,568
Accumulated Amortization 15,073 $ 15,073
$ $ 19,495 $ $ 19,495
NOTE 10 - Lease and Subscription Payable
Lease
The City, as a lessee, had entered into lease agreements involving vehicles and equipment. As of 9/30/23, the City had a lease liability
balance of $163,190. The balance of the lease assets was $248,262, and the accumulated amortization balance was $53,082.
Principal and Interest Expected to Maturity
Page 43
Governmental Activities
Principal
Principal
Interest
Fiscal Year
Fiscal Year
Payments
Payments Total
Payments
2024
$ 47,664
$ 3,595 $
51,259
2025
48,092
2,467
50,559
2026
39,417
1,312
40,729
2027
15,534
379
15,913
2028
92
1
93
$ 12,393
$ 150,799
$ 7,754 $
158,553
Page 43
Business -Type Activities
Principal
Interest
Fiscal Year
Payments
Payments
Total Payments
2024
$ 4,466
$ 147
$ 4,613
2025
3,813
100
3,913
2026
3,079
55
3,134
2027
772
23
795
2028
263
2
265
Business -Type Activities
$ 12,393
$ 327
$ 12,720
Page 43
Beginning
Governmental Activities
Balance
Additions
Reductions
Ending
Balance
Lease Liability
113,525
$ 86,204
$ 48,931
$
150,798
113,525
$ 86,204
$ 48,931
$
150,798
Beginning
Business -Type Activities
Balance
Additions
Reductions
Ending
Balance
Lease Liability
$ 13,163.00
$ 3,829
$ 4,600
$
12,392
$ 13,163.00
$ 3,829
$ 4,600
$
12,392
Page 43
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 11 OF 16)
NOTE 10 - Lease and Subscription Payable (Continued)
Subscription
The City had entered into subscription -based information technology agreements involving the use of software. As of 9/30/23, the City
had a subscription liability balance of $23,804. The balance of the subscription assets was $46408, and the accumulated amortization
balance was $20,256.
Principal and Interest Expected to Maturity
Governmental Activities
Subscription Liability
Business -Type Activities
Subscription Liability
NOTE 11 - Lona -term Debt and Accrued Compensation
Accrued Compensated Absences:
Current portion
Noncurrent portion
Long-term Debt:
Balance Additions Reductions Ending Balance
$ $ 11,840 $ 5,183 $ 6,657
$ $ 11,840 $ 5,183 6,657
Balance Additions Reductions Ending Balance
$ $ 34,563 $ 16,948 $ 17,615
$ $ 34,563 $ 16,948 $ 17,615
Governmental Business -type
$ 97,523 $ 30,904
390,092 123,619
$ 487,615 $ 154,523
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:
On April 14, 2022, the City issued a debt obligation to purchase an fire aerial ladder truck. Payments are due April 14, beginning April
14, 2023. The debt was issued at 3.03%. The note was issued for $1,000,000 with a annual payment of $117,410 until the maturity
date of April 14, 2032.
Current portion
Noncurrent portion
Business -type activities:
$ 89,750
823,140
_L__212 ,890
In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with an
interest rate of 3.25% and semi-annual payments of $12,332 for 20 years.
Current portion
Noncurrent portion
Page 44
$ 22,938
35,883
$ 58,821
Governmental Activities
Principal
Interest
Fiscal Year
Payments
Payments
Total
Payments
2024
$ 6,037
$
195
$
6,232
$ 6,037
$
195
$
6,232
Business
-Type Activities
Principal
Interest
Fiscal Year
Payments
Payments
Total Payments
2024
$ 17,621
$
568
$
18,189
$ 17,621.00
$
568
$
18,189
Governmental Activities
Subscription Liability
Business -Type Activities
Subscription Liability
NOTE 11 - Lona -term Debt and Accrued Compensation
Accrued Compensated Absences:
Current portion
Noncurrent portion
Long-term Debt:
Balance Additions Reductions Ending Balance
$ $ 11,840 $ 5,183 $ 6,657
$ $ 11,840 $ 5,183 6,657
Balance Additions Reductions Ending Balance
$ $ 34,563 $ 16,948 $ 17,615
$ $ 34,563 $ 16,948 $ 17,615
Governmental Business -type
$ 97,523 $ 30,904
390,092 123,619
$ 487,615 $ 154,523
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:
On April 14, 2022, the City issued a debt obligation to purchase an fire aerial ladder truck. Payments are due April 14, beginning April
14, 2023. The debt was issued at 3.03%. The note was issued for $1,000,000 with a annual payment of $117,410 until the maturity
date of April 14, 2032.
Current portion
Noncurrent portion
Business -type activities:
$ 89,750
823,140
_L__212 ,890
In 2006, the City refinanced a construction line of credit for a note payable with the Department of Environmental Quality (DEQ) with an
interest rate of 3.25% and semi-annual payments of $12,332 for 20 years.
Current portion
Noncurrent portion
Page 44
$ 22,938
35,883
$ 58,821
CITY OF CHLIBBLICK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 12 OF 16)
NOTE 11 - Lona -term Debt and Accrued Compensation (Continued)
The City was authorized 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.
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. $ 82,591
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. 4,709,255
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. 4,255,142
DEQ line of credit at zero percent interest, with biannual payment of $3,266 for 20 years, and a maturity date of April
27, 2035. Loan closed January 31, 2011. 75,112
$ 9,122,100
Less current portion 852,545
Noncurrent portion $ 8,269,555
With an original loan date of August 23, 2023, the City received a loan award from the Department of Environmental Quality (DEQ) for
$9,222,747 at 2.75% interest. Principal and interest shall be paid in equal semi-annual installments of $301,377 over 20 years. The
loan is being used to finance the designing and constructing of a well in Copperfield Landing, additional water distribution lines
throughout the City, and the Hiline booster station.
Current portion
Noncurrent portion
$ 350,813
7,825,700
$ 8,176,513
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
$ 22,066 $ 460,000 $ 482,066
22,066 460,000 482,066
7,355 145,000 152,355
$ 14.711 $ 315.000 $ 329.711
Bond premiums, net amortization totaled $22,066. 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 a note to purchase assets needed in order to collect sanitation for the City. The note was issued at
5.25%. The note was refinanced in 2009. The note was issued for $1,375,000 with a monthly payment of $9,321 until the maturity date
of May 5, 2029.
Current portion
Noncurrent portion
Due To/Due From
$ 99,483
301,298
_L__400 ,781
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
Highway, Streets, and Roads
Sewer Enterprise Fund
Page 45
Due from Due to
$ 3,341,635 $
3,341,635
$ 3,341,635$ 3,341,635
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 13 OF 16)
NOTE 11 - Lona -term Debt and Accrued Compensation (Continued)
Annual Debt Service Requirements for bonds and notes payable
Year Ending
Governmental Activities
Business -type
Activities
September 30
Principal
Interest
Principal
Interest
2024
$ 89,750 $
27,660.57
$ 1,377,847
$ 242,664
2025
92,469
24,941
1,400,960
225,224
2026
95,271
22,139
1,395,913
207,822
2027
98,157
19,253
1,238,618
189,422
2028
101,132
16,278
1,165,095
179,743
2029-2033
436,112
33,528
5,954,987
753,001
2034-2038
-
-
3,064,745
487,884
2039-2043
Ending
Due within
2,620,051
183,953
Additions
$ 912,890 $
143,801
$ 18,218,216
$ 2,469,713
Changes in long-term liabilities
Long-term liability activity for the year was as follows
Long-term portion _L_j6
NOTE 12- Conduit Debt Obligations
Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or
similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third
party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in
the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into
Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has
entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew
the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The
COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to
lease will expire in the year 2043.
There are no voluntary or limited obligations in regards to this Certificate of Participation.
NOTE 13- Stewardship. Compliance and Accountability
A. Deficit Fund Balance
At September 30, 2023, the City had a deficit fund balance in the amount of $2,310,284 in the Highway, Streets, and Roads fund. The
future revenues and reduction of an interfund loan will decrease the deficit fund balance.
Page 46
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Governmental activities
Notes payable
$ -
$ 1,000,000
$ 87,110
$ 912,890
$ 89,750
Compensated absences
$ 462,897
$ 539,625
$ 514,907
$ 487,615
$ 97,523
$ 462,897
$ 1,539,625
$ 602,017
$ 1,400,505
$ 187,273
Long-term portion$
1,213,232
Beginning
Ending
Due within
Balance
Additions
Reductions
Balance
one year
Business -type activities
Bonds payable
$ 605,000
$
$ 145,000
$ 460,000
$ 152,355
Notes payable
18,728,673
970,457
17,758,216
1,325,780
Compensated absences
141,067
209,462
196,006
154,523
30,904
$ 19,474,740
$ 209,462
$ 1,311,463
$ 18,372,739
$ 1,509,039
Long-term portion _L_j6
NOTE 12- Conduit Debt Obligations
Conduit debt has been defined by Generally Accepted Accounting Principles (GAAP) as certain limited -obligation revenue bonds or
similar debt instruments issued by a local governmental entity for the express purpose of providing capital financing for a specific third
party that is not a part of the issuer's financial reporting entity. In November of 2019, the City issued Certificate of Participation (COP) in
the amount of $14,815,000, to provide the financial assistance needed to construct a new City Hall, remodel the existing City Hall into
Law Enforcement Headquarters and build a new Animal Control Facility. The COP is secured by the properties financed. The City has
entered into a lease back agreement to qualify for the conduit debt. Each year the city has the opportunity to disclose its intent to renew
the annual lease agreement. If the City does not renew the annual lease, the COP holders would have the rights to the assets. The
COP principal balance is reported as deferred inflows on the City's financials and is not a long-term liability of the City. The option to
lease will expire in the year 2043.
There are no voluntary or limited obligations in regards to this Certificate of Participation.
NOTE 13- Stewardship. Compliance and Accountability
A. Deficit Fund Balance
At September 30, 2023, the City had a deficit fund balance in the amount of $2,310,284 in the Highway, Streets, and Roads fund. The
future revenues and reduction of an interfund loan will decrease the deficit fund balance.
Page 46
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 14 OF 16)
NOTE 14- 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:
Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered
compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make
periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate
to accumulate sufficient assets to pay benefits when due.
The contribution rates for employees are set by stature at 60% of the employer rate for general employees and 74% for police and
firefighters. As of June 30, 2023 it was 7.16% for general employees and 9.13% for police and firefighters. The employer contribution
rate as a percent of covered payroll is set by the Retirement Board and was 11.94% general employees and 12.28% for police and
firefighters. The City's contributions were $774,988 for the year ended September 30, 2023.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources
Related to Pensions:
At September 30,2023, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2023, 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, 2023, the City's proportion
was .15265332 percent.
For the year ended September 30, 2023, the City recognized pension expense (revenue) of $1,633,014. At September 30, 2023, the
City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources:
Page 47
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience
$ 1,044,196 $
Changes in assumptions or other inputs
603,225
Net difference between projected and actual earnings on pension plan investments
-
Changes in the employer's proportion and differences between the employer's contributions and the
employer's proportionate contributions
571,814
City contributions subsequent to the measurement date
216,817
$ 2,436,052 $
$216,817 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, 2023.
Page 47
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 15 OF 16)
NOTE 14 - Pension Plan (Continued)
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, 2023 the beginning of the measurement period ended June 30, 2022 is 4.6 and 4.4 for the
measurement period June 30, 2023.
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, 2023:
2024
$ 789,208
2025
370,871
2026
1,153,722
2027
(94,566)
Actuarial Assumptions:
Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs
are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the
projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year's earnings of the
individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level
percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years.
The total pension liability in the June 30, 2023 actuarial valuation was determined using the following actuarial assumptions, applied to
all periods included in the measurement:
Inflation
2.30%
Salary increases
3.05%
Salary inflation
3.05%
Investment rate of return
6.35%, net of investment expenses
Cost -of -living adjustments
1%
Contributina Members, Service Retirement Members. and Beneficiaries
General Employees and All Beneficiaries - Males Pub -2010 General Tables, increased 11%
General Employees and All Beneficiaries - Females Pub -2010 General Tables, increased 21%
Teachers - Males Pub -2010 Teacher Tables, increased 12%
Teachers - Females Pub -2010 Teacher Tables, increased 21%
Fire & Police - Males Pub -2010 Safety Tables, increased 21%.
Fire & Police - Females Pub -2010 Safety Tables, increased 26%.
Disabled Members - Males Pub -2010 Disabled Tables, increased 38%
Disabled Members - Females Pub -2010 Disabled Tables, increased 36%
An experience study was performed for the period July 1, 2015 through June 30, 2020, which reviewed all economic and demographic
assumptions including mortality. The Total Pension Liability as of June 30, 2023 is based on the results of an actuarial valuation date
July 1,2023.
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.
Page 48
CITY OF CHUBBUCK, IDAHO
NOTES TO FINANCIAL STATEMENTS (PAGE 16 OF 16)
NOTE 14 - Pension Plan (Continued)
Actuarial Assumptions: (continued)
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 2023.
Asset Class DB Plans
Sick Leave
Fixed Income 30.0%
50.0%
US/Global Equity 55.0%
39.3%
International Equity 15.0%
10.7%
Cash 0.0%
0.0%
Total
Discount Rate:
100.0% 100.0%
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 6.35 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 (5.35 percent) or 1 -percentage -point higher (7.35 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
5.35% 6.35% 7.35%
Employer's proportionate share of the net pension liability (asset) 10,956,517 6,091,891 2,115,972
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, 2023, the City reported payables to the defined benefit pension plan of $0 for legally required employer contributions
and $0 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI.
NOTE 15 - Risk Manaaement
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 medical benefits provided to City employees and covered dependents. Health benefits
were self-funded up to a specific stop loss amount of $50,000, and an aggregate attachment point of $934,314 for 2023. Coverage from
a private insurance company is maintained for individual claims in excess of $50,000 and for total claims in excess of the aggregate
attachment point.. 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 a professional actuary 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 claims and expenses. The claims
liability of $108,801 reported as incurred but not reported 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 16 - Subseauent Events
Subsequent events were evaluated up to May 3, 2024, the date the financial statements were available to be issued.
Page 49
REQUIRED SUPPLEMENTARY INFORMATION
50
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
YEAR ENDED SEPTEMBER 30, 2023
Resources
Property taxes
Franchise fees
Intergovernmental income
Court revenue
Parks revenue
Licenses, permits and fines
Grants
Fire protection and prevention
Law enforcement
Leases and rents
Interest income
Donations
Charges for services
Other resources
Amounts available for appropriations
Charges to appropriations
General government
Law enforcement
Fire control
Parks and recreation
Community services
Capital outlays
Lease and subscription capital outlays
Debt service
Equipment note payable principle expense
Principle retirement and lease finance
Interest expense
Total charges to appropriations
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
Other Financing Sources
Proceeds from debt
Proceeds from certificate of participation
Proceeds from leases and subscriptions
Proceeds from sale of assets
Transfer in (out)
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
Budgeted Amounts
Original
Final
Actual
Amounts
Variance
Positive
(Negative)
$ 6,133,412
$ 6,133,412
$ 6,216,172
$ 82,760
240,000
240,000
250,217
10,217
2,003,482
2,003,482
2,002,540
(942)
35,000
35,000
35,076
76
10,000
10,000
18,224
8,224
42,000
42,000
461,613
419,613
-
-
3,246,648
3,246,648
-
-
72
72
-
-
110
110
75,000
75,000
136,939
61,939
100,000
100,000
337,454
237,454
-
-
8,084
8,084
-
-
3,472
3,472
-
-
45,648
45,648
8,638,894
8,638,894
12,762,269
4,123,375
820,326
820,326
1,050,464
(230,138)
4,329,500
4,329,500
3,970,167
359,333
2,145,613
2,145,613
1,972,237
173,376
748,569
748,569
775,584
(27,015)
516,886
516,886
482,760
34,126
78,000
78,000
4,635,222
(4,557,222)
-
-
88,628
(88,628)
-
-
87,110
(87,110)
-
-
54,474
(54,474)
-
-
27,167
(27,167)
8,638,894
8,638,894
13,143,813
(4,504,919)
(381,544) (381,544)
- - 1,000,000
1,000,000
- - 3,665,816
3,665,816
- - 88,627
88,627
- - 18,169
18,169
- 95,732
95,732
- - 4,868,344
4,868,344
- - 4,486,800 4,486,800
3,453,407 3,453,407
ENDING FUND BALANCE $ - $ - $ 7,940,207 $ 7,940,207
51
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
HIGHWAY, STREETS AND ROADS
YEAR ENDED SEPTEMBER 30, 2023
Resources
Property taxes
Intergovernmental
Grant revenue
Interest Income
Other revenues
Amounts available for appropriations
Charges to appropriations
Highway Streets amd Roads
Salaries and personnel benefits
Supplies
Utilities
Building maintenance
Professional services
Street signing and marking
Street construction and maintenance
Equipment maintenance
Capital outlays
Lease and subscription capital outlays
Miscellaneous expenses
Debt Service
Principal lease and subscription expense
Interest expense
Total charges to appropriations
Excess of revenues over
(under) expenditures
Other financing sources (uses)
Proceeds from leases and subscriptions
Transfer in (out)
NET CHANGE IN FUND BALANCE
BEGINNING FUND BALANCE
ENDING FUND BALANCE
Budgeted Amounts
778,700
Variance
778,700
7,500
Actual
Positive
Original
Final
Amounts
(Negative)
$ 945,540
$ 945,540
$ 943,665
$ (1,875)
1,354,460
1,354,460
1,071,510
(282,950)
-
-
92,676
92,676
-
-
29,036
29,036
-
-
18,895
18,895
2,300,000
2,300,000
2,155,782
(144,218)
1,958,654 (1,958,654)
778,700
778,700
-
778,700
7,500
7,500
-
7,500
17,000
17,000
-
17,000
10,000
10,000
-
10,000
25,000
25,000
-
25,000
38,000
38,000
-
38,000
602,400
602,400
-
602,400
192,500
192,500
-
192,500
136,000
136,000
97,926
38,074
-
-
9,419
(9,419)
492,900
492,900
-
492,900
-
-
110
(110)
-
-
3,360
(3,360)
2,300,000
2,300,000
2,069,469
230,531
- 86,313 86,313
- - 9,419 9,419
-(95,732) (95,732)
- (86,313) (86,313)
- (2,310,284) (2,310,284)
$ - - $(2,310,284) $(2,310,284)
52
CITY OF CHUBBUCK, IDAHO
Schedule of Employer's Share of Net Pension Liability
PERSI - Base Plan
Last 10 - Fiscal Years*
2023 2022 2021 2020 2019 2018 2017 2016 2015
Employer's portion of the net pension liability
(asset) 0.0015265332 0.001611476 0.001644693 0.001641301 0.001625296 0.001606905 0.001542148 0.00145924 0.001459012
Employer's proportionate share of the net pension
liability (asset) $ 6,091,891 $ 6,347,214 $ (129,895) $ 3,811,318 $ 1,855,230 $ 2,370,213 $ 2,423,992 $ 2,958,104 $ 1,921,281
Employer's covered -employee payroll $ 6,464,312 $ 6,327,525 $ 6,112,874 $ 5,820,108 $ 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 94.24% 100.31% -2.12% 65.49% 33.75% 46.09% 50.88% 70.01%
Plan fiduciary net position as a percentage of the
total pension liability 83.83% 83.09% 100.36% 88.22% 93.79% 91.69% 90.68% 87.26%
* 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, 2023
53
47.18%
91.38%
Statutorily required contribution
Contributions in relation to the statutorily
required contribution
Contribution (deficiency) excess
Employer's covered -employee payroll
Contributions as a percentage of covered -
employee payroll
* GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10 -year trend is compiled, the City will present information for those years for which
information is available.
Data is reported as a measurement of September 30, 2023.
54
CITY OF CHUBBUCK, IDAHO
Schedule of Employer Contributions
PERSI — Base Plan
Last 10 — Fiscal Years
2023
2022
2021 2020
2019
2018
2017
2016
2015
$ 791,964
$ 765,724
$ 741,954 $ 709,029
$
643,275
$ 594,166
$ 545,551
$ 503,931
$ 469,058
$ 791,964
$ 765,724
$ 741,954 $ 709,029
$
643,275
$ 594,166
$ 545,551
$ 503,931
$ 469,058
$ 6,336,434
$ 6,254,019
$ 6,154,443 $ 6,009,444
$
5,597,869
$ 5,318,395
$ 4,568,504
$ 4,536,572
$ 4,225,217
12.50%
12.24%
12.06% 11.80%
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, 2023.
54
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
General government
The City had expenditures in excess of budget of $4,504,919 in the general government due to: an
increase of general expenditures for the expansion and remodel of office space. The City received
$3,665,816 in proceeds from Certificates of Participation, $1,000,000 in lease proceeds and used
available fund balances to cover the expenditures over budget.
Highway. Streets, and Roads
The City had actual expenditures below budget of $230,531.
55
OTHER SUPPLEMENTARY INFORMATION
Q:
CITY OF CHUBBUCK, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
SEPTEMBER 30, 2023
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 $ 242,940 $ 192,343
$ 1,006,918 $ 312,480
$ 1,259
$ 178,782 $ 172,828
$ 384,224 $ 2,491,774
FUND BALANCES
Committed, reported in:
Special revenue fund $ 242,940 $ 192,343 $ 1,006,918 $ 312,480 $ 1,259 $ 178,782 $ 172,828 $ 384,224 $ 2,491,774
CITY OF CHUBBUCK, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
58
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
$ 3,470
$ 2,854
$ 14,143
$ 4,686
$ 20
$ 3,065
$ 3,169
$ 7,045
$ 38,452
Other revenues
88,402
63,658
503,585
98,453
-
44,139
-
-
798,237
91,872
66,512
517,728
103,139
20
47,204
3,169
7,045
836,689
EXPENDITURES
Other purchased services
-
-
22,500
3,000
-
-
-
-
25,500
Capital Outlays
-
85,134
-
-
85,134
-
-
107,634
3,000
-
-
110,634
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES
91,872
66,512
410,094
100,139
20
47,204
3,169
7,045
726,055
NET CHANGE IN FUND BALANCES
91,872
66,512
410,094
100,139
20
47,204
3,169
7,045
726,055
BEGINNING FUND BALANCE
151,068
125,831
596,824
212,341
1,239
131,578
169,659
377,179
1,765,719
ENDING FUND BALANCE
$ 242,940
$ 192,343
$ 1,006,918
$ 312,480
$ 1,259
$ 178,782
$ 172,828
$ 384,224
$ 2,491,774
58
LIABILITIES
Current Liabilities
Accounts payable 6,149 - 6,149 6,149
6,149 - 6,149 6,149
Noncurrent Liabilities
6,149 - 6,149 6,149
NET POSITION
Net investment in capital assets 3,651 - 3,651 4,938
Unrestricted - - - 346,779
$ 3,651 $ - $ 3,651 $ 351,717
59
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF NET POSITION
INTERNAL SERVICE FUNDS
SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS AS OF SEPTEMBER 30, 2022
Employee
Central Health
Garage Benefit
2023
2022
Fund Fund
Totals
Totals
ASSETS
Current assets
Cash and cash equivalents
$ - $ -
$ -
$346,779
Accounts receivable
6,149 -
6,149
17,604
6,149 -
6,149
364,383
Noncurrent assets
Restricted assets
Capital assets
261,085 -
261,085
261,085
Accumulated depreciation
(257,434) -
(257,434)
(256,147)
3,651 -
3,651
4,938
9,800 -
9,800
369,321
LIABILITIES
Current Liabilities
Accounts payable 6,149 - 6,149 6,149
6,149 - 6,149 6,149
Noncurrent Liabilities
6,149 - 6,149 6,149
NET POSITION
Net investment in capital assets 3,651 - 3,651 4,938
Unrestricted - - - 346,779
$ 3,651 $ - $ 3,651 $ 351,717
59
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
OPERATING REVENUES
Interest earnings
Service revenue
OPERATING EXPENSES
Repairs and maintenance
Equipment and supplies
Travel, meetings, and training
Fuels and lubricants
Utilities
Other purchased services
Depreciation
OPERATING INCOME (LOSS)
CHANGES IN NET POSITION
BEGINNING NET POSITION
ENDING NET POSITION
Employee
Central Health
Garage Benefit
Fund Fund
102,173
102,173
6,432
86,448
15
525
8,753
1,287
103,460
(1,287)
(1,287)
4,938
$ 3,651
$ 2,805
349,584
(346,779)
(346,779)
346,779
2023
$ 2,805
102,173
104,978
6,432
86,448
15
525
8,753
349,584
1,287
453,044
(348,066)
(348,066)
351,717
$ 3,651
2022
Totals
$651
331,798
332,449
13,766
276,413
48
2,610
9,978
1,287
304,102
28,347
28,347
323,370
$ 351,717
CITY OF CHUBBUCK, IDAHO
STATEMENTS OF CASH FLOWS - INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED SEPTEMBER 30,2023
WITH COMPARATIVE TOTALS FOR THE YEAR ENDED SEPTEMBER 30, 2022
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:
Employee
Central Health
Garage Benefit
Fund Fund
2023 2022
$113,628 $ 2,805 $ 116,433 $ 314,845
(113,628) (349,584) (463,212) (314,194)
(346,779) (346,779) 651
- (346,779) (346,779) 651
- 346,779 346,779 346,128
$ 346,779
Cash and cash equivalents $ - $ - $ - $346,779
Cash and cash equivalents - Restricted - - - -
$ $ 346,779
RECONCILIATIONS OF NET INCOME TO NET CASH
PROVIDED BY OPERATING ACTIVITIES
OPERATING INCOME (LOSS)
RECONCILIATION OF OPERATING INCOME TO
NET CASH PROVIDED BY OPERATING ACTIVITIES
Depreciation
(Increase) decrease in assets
Accounts receivable
Increase (decrease) in liabilities
Accounts payable
Total adjustments
NET CASH PROVIDED BY OPERATING ACTIVITIES
61
Employee
Central Health
Garage Benefit
Fund Fund
2023 2022
$ (1,287) $(346,779) $(348,066) $ 28,347
1,287 - 1,287 1,287
11,455 - 11,455 (17,604)
(11,455) - (11,455) (11,379)
1,287 - 1,287 (27,696)
$ - $(346,779) $(346,779) $ 651
CITY OF CHUBBUCK, IDAHO
BUDGETARY COMPARISON SCHEDULE
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
Budgeted Amounts Variance
Actual Positive
Original Final Amounts (Negative)
Resources
Interest income - - $ 38,452.00 $ 38,452.00
Other resources - - 798,237 798,237
Amounts available for appropriations - - 836,689 836,689
Charges to appropriations
Park Impact Fees
- - 107,634
(107,634)
Street guarantee fund
- -3,000
(3,000)
Total charges to appropriations
- - 110,634
(110,634)
NET CHANGE IN FUND BALANCE
- - 726,055
726,055
BEGINNING FUND BALANCE
- - 1,765,719
1,765,719
ENDING FUND BALANCE $
- $ - $ 2,491,774
$ 2,491,774
G!
STATISTICAL SECTION
63
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 65-72
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 73-76
These schedulers contain information to help the reader assess
the City's most significant local revenue source, the property tax.
Debt Capacity 77-78
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 79-81
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.
64
City of Chubbuck
Net Position By Components
Last Ten Fiscal Years
(Accrual -Basis Accounting)
65
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Governmental activities:
Invested in capital assets, net of related debt
$
11,396,599
$
10,137,975
$
11,138,839
$
16,829,117
$
24,019,218
$
26,473,293
$ 28,622,260
$ 32,641,830
$
42,901,054
$
48,801,763
Restricted
-
-
-
-
-
-
-
-
-
-
Unrestricted
4,130,936
4,532,072
6,181,447
3,212,484
547,753
(381,048)
(1,695,666)
(1,091,874)
(4,373,190)
(4,124,985)
Total governmental activities net position
$
15,527,535
$
14,670,047
$
17,320,286
$
20,041,601
$
24,566,971
$
26,092,245
$ 26,926,594
$ 31,549,956
$
38,527,864
$
44,676,778
Business -type activities
Invested in capital assets, net of related debt
$
6,091,493
$
6,086,514
$
6,814,991
$
9,217,942
$
11,612,979
$
11,876,681
$ 16,363,939
$ 41,932,621
$
43,397,173
$
44,796,281
Restricted
167,481
165,181
166,731
168,131
164,850
166,100
167,200
168,150
168,950
164,600
Unrestricted
16,145,285
18,460,974
21,272,113
22,001,056
21,704,355
25,076,744
24,496,821
5,378,964
7,682,888
10,029,396
Total business -type activities net position
$
22,404,259
$
24,712,669
$
28,253,835
$
31,387,129
$
33,482,184
$
37,119,525
$ 41,027,960
$ 47,479,735
$
51,249,011
$
54,990,277
Primary government
Net investment in capital assets
$
17,488,092
$
16,224,489
$
17,953,830
$
26,047,059
$
35,632,197
$
38,349,974
$ 44,986,199
$ 74,574,451
$
86,298,227
$
93,598,044
Restricted
167,481
165,181
166,731
168,131
164,850
166,100
167,200
168,150
168,950
164,600
Unrestricted
20,276,221
22,993,046
27,453,560
25,213,540
22,252,108
24,695,696
22,801,155
4,287,090
3,309,698
5,904,411
Total primary government net position
$
37,931,794
$
39,382,716
$
45,574,121
$
51,428,730
$
58,049,155
$
63,211,770
$ 67,954,554
$ 79,029,691
$
89,776,875
$
99,667,055
65
66
City of Chubbuck
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
2014
2016 2017
2015
2018
2019
2020
2021
2022
2023
Expenses
Governmental activities:
General Government
$ 443,813
$ 542,494
$ 896,297 $ 880,217 $
862,299
$ 836,698
$ 1,537,463
$ 1,348,508
$ 1,153,148
$ 1,309,632
Law enforcement
2,771,003
2,868,345
3,188,507 3,310,717
3,447,266
3,492,557
3,896,661
3,288,219
3,922,815
4,088,400
Fire Control
1,335,240
1,519,108
1,360,246 1,307,106
1,417,951
1,556,572
1,939,749
1,802,233
2,166,198
2,221,199
Building Inspection
172,439
172,946
199,277 199,336
217,171
246,220
28,004
371,732
-
-
Street
1,450,965
1,524,819
1,487,702 1,426,385
1,293,629
1,210,550
2,042,497
1,764,251
2,121,982
2,490,247
Parks & Recreation
484,041
529,372
591,638 601,054
653,878
623,328
636,713
802,354
879,101
913,966
Health and welfare
51,165
41,171
76,884 83,293
90,621
80,049
88,129
91,539
630,746
508,245
Other special funds
350
-
20,196 150
1,600
17,100
43,181
4,425
234,872
25,500
CIAWWC Authority
2,930
2,930
609,036 609,036
-
-
-
-
-
-
Total governmental activities expenses
6,711,946
7,201,185
8,429,783 8,417,294
7,984,416
8,063,075
10,212,397
9,473,261
11,108,862
11,557,189
Business -type activities:
Water
1,560,406
1,781,501
1,793,535 1,726,443
2,111,162
2,028,807
2,440,008
2,742,104
3,494,695
3,514,768
Sewer
1,709,310
2,200,476
2,319,135 2,363,009
2,649,245
2,705,251
3,174,444
2,868,693
3,707,757
3,872,609
Sanitation
1,219,283
1,060,218
1,221,934 1,637,470
1,732,030
1,626,740
1,916,682
1,969,580
2,460,458
2,449,593
Health Plan Trust
-
-
- -
-
-
-
1,346,956
1,646,714
1,595,925
CIAWWC Authority
-
-
- -
609,036
609,036
609,063
306,104
3,800
3,100
Total business -type activities program expenses
4,488,999
5,042,195
5,334,604 5,726,922
7,101,473
6,969,834
8,140,197
9,233,437
11,313,424
11,435,995
Total primary government program expenses
11,200,945
12,243,380
13,764,387 14,144,216
15,085,889
15,032,909
18,352,594
18,706,698
22,422,286
22,993,184
66
City of Chubbuck
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
67
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Program Revenues
Governmental activities:
Charges for services:
General Government
134,555
298,505
365,049
414,674
323,186
399,415
342,244
379,116
497,615
598,552
Law enforcement
-
35,311
28,918
31,942
29,940
34,221
28,081
27,335
38,982
35,186
Fire control
232,992
197,261
211,041
214,172
237,675
176,925
61,832
5,009
23,963
72
Street
-
-
-
-
13,165
17,468
1,292
8,493
-
-
Parks & Recreation
7,203
9,762
10,589
12,728
149,681
14,758
6,125
16,889
15,833
21,696
CIAWWC Authority
-
-
-
10,980
-
-
-
-
-
-
Operating grants and contributions
33,200
48,000
43,890
71,329
84,653
179,095
652,897
2,345,551
1,034,960
3,347,408
Capital grants and contributions
-
916,767
2,667,268
2,354,109
3,644,635
1,019,354
1,253,033
2,253,204
5,322,013
2,211,701
Total governmental activities program revenues
407,950
1,505,606
3,326,755
3,109,934
4,482,935
1,841,236
2,345,504
5,035,597
6,933,366
6,214,615
Business -type activities:
Charges for services:
Water
2,422,542
2,680,920
2,783,945
2,728,684
2,896,320
2,983,977
2,944,986
3,167,282
3,256,843
3,540,200
Sewer
3,093,116
3,583,861
3,657,738
3,803,714
3,979,134
4,229,957
4,163,168
4,403,367
4,749,986
5,348,899
Sanitation
1,727,680
1,731,740
2,169,627
2,192,420
1,978,239
1,930,472
1,952,196
2,044,405
2,223,905
2,283,471
Health Plan Trust
-
-
-
-
-
-
-
1,484,058
1,714,040
1,992,780
CIAWWC Authority
-
-
-
-
66,915
21,960
95,330
54,900
-
-
Operating grants and contributions
11,328
134,662
93,730
-
-
-
-
17,955
Capital grants and contributions
-
-
-
-
228,000
1,045,754
2,785,144
3,228,076
3,285,586
1,540,842
Total business -type activities program revenues
7,243,338
8,007,849
8,611,310
8,859,480
9,242,338
10,212,120
11,940,824
14,382,088
15,230,360
14,724,147
Total primary government program revenues
7,651,288
9,513,455
11,938,065
11,969,414
13,725,273
12,053,356
14,286,328
19,417,685
22,163,726
20,938,762
Net(Expense)/Revenue
Governmental activities
(6,303,996)
(5,695,579)
(5,103,028)
(5,307,360)
(3,501,480)
(6,221,839)
(7,866,893)
(4,437,664)
(4,175,496)
(5,342,574)
Business -type activities
2,754,339
2,965,654
3,276,706
3,132,558
2,140,865
3,242,286
3,800,627
5,148,651
3,916,936
3,288,152
Total primary governmental net (expense)/revenue
(3,549,657)
(2,729,925)
(1,826,322)
(2,174,802)
(1,360,615)
(2,979,553)
(4,066,266)
710,987
(258,560)
(2,054,422)
67
General Revenues and other Changes in Net Position
Governmental activities:
General Property taxes and sales tax
Franchise fees
Intergovernmental
Leases and rents
Interest income
Proceeds from sale of assets
Gain on sale of assets
Capital contributions
Other revenue
Transfers in (out)
CIAWWC Authority
Total governmental activities
Business -type activities:
Interest income
Capital contributions
Gain on sale of assets
Other revenue
Transfers in (out)
Total business -type activities
Total primary government
Changes in Net Position
Governmental Activities
Business -type activities
Total primary government
68
City of Chubbuck
Change in Net Position
Last Ten Fiscal Years
(Accrual -Basis Accounting)
2014
2015
2016 2017
2018
2019
2020
2021
2022
2023
5,292,450
5,296,480
5,366,613 5,642,004
5,975,483
6,499,369
7,123,630
4,790,711
7,001,435
7,132,094
203,790
198,493
199,194 201,328
203,950
189,494
186,818
195,483
254,956
250,217
903,149
1,021,666
1,311,704 1,323,581
1,373,948
1,403,606
1,187,121
3,241,504
3,223,432
3,074,050
66,152
-
- -
-
-
-
-
-
-
60,651
76,828
90,432 98,064
157,760
182,445
160,617
97,869
131,771
404,942
11,154
-
- -
-
-
-
-
-
-
-
18,038
19,282 -
54,759
78
6,345
-
79,272
18,169
1,286,887
-
- -
-
-
-
-
-
-
14,366
41,828
766,042 763,697
199,888
186,953
36,711
735,459
462,538
612,016
(3,000)
-
- -
-
(534,080)
-
-
-
-
228,000
-
- -
-
-
-
-
-
-
8,063,599
6,653,333
7,753,267 8,028,674
7,965,788
7,927,865
8,701,242
9,061,026
11,153,404
11,491,488
574
-
- -
4,000
106,283
105,808
24,178
(159,885)
442,312
13,217
-
- -
-
-
-
-
-
-
-
2,530
86,100 736
11,252
2,000
800,418
7,626
10,802
-
-
- -
-
-
-
-
4,599
-
3,000
100
534,080
-
-
16,791
2,630
86,100 736
15,252
640,363
107,808
824,596
(147,660)
453,114
8,080,390
6,655,963
7,839,367 8,029,410
7,981,040
8,568,228
8,809,050
9,885,622
11,005,744
11,944,602
1,759,603
957,754
2,650,239 2,721,314
4,464,308
1,706,026
834,349
4,623,362
6,977,908
6,148,914
2,771,130
2,968,284
3,362,806 3,133,294
2,156,117
3,882,649
3,908,435
5,973,247
3,769,276
3,741,266
$ 4,530,733 $
3,926,038
$ 6,013,045 $ 5,854,608 $
6,620,425
$ 5,588,675
$ 4,742,784
$ 10,596,609
$ 10,747,184
$ 9,890,180
68
••
City of Chubbuck
Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
2014
2016 2017 2018
2015
2019
2020
2021
2022
2023
General fund
Unassigned
$ 2,933,821
$ 2,952,093
$ 3,410,321 $ 3,939,114 $ 1,239,050 $
107,771
$ (589,351)
$ 540,267
$ 1,143,122
$ 5,629,923
Total General Fund
2,933,821
2,952,093
3,410,321 3,939,114 1,239,050
107,771
(589,351)
540,267
1,143,122
5,629,923
All Other Governmental Funds
Committed
511,696
554,175
565,911 453,040 516,555
658,913
910,503
1,566,814
1,765,720
2,491,774
Total all other governmental funds
$ 511,696
$ 554,175
$ 565,911 $ 453,040 $ 516,555 $
658,913
$ 910,503
$ 1,566,814
$ 1,765,720
$ 2,491,774
••
City of Chubbuck
Changes in Fund Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
70
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
Revenues:
Property taxes and sales tax
$ 5,295,493
$ 5,349,772
$ 5,375,566
$ 5,627,360
$ 5,930,753
$ 6,405,974
$ 7,131,017
$ 4,895,548
$ 7,040,950
$ 7,159,837
Franchise fees
203,790
198,493
199,194
201,328
203,950
189,494
186,818
195,483
254,956
250,217
Intergovernmental
903,149
1,021,666
1,311,704
1,323,581
1,373,948
1,403,606
1,187,121
3,241,504
3,223,432
3,074,050
Court Revenue
-
35,311
28,918
31,942
29,940
34,221
28,081
27,335
28,549
35,076
Parks revenue
2,668
5,402
7,629
10,733
7,729
8,670
2,409
14,275
13,133
18,224
License, permits and fines
134,555
219,868
289,199
320,860
231,180
308,615
220,174
262,953
368,406
461,613
Grants
14,800
466,000
248,290
336,433
43,629
109,076
585,950
2,334,053
516,533
3,339,324
Fire protection and prevention
232,992
197,261
211,041
214,172
237,675
176,925
61,832
5,009
23,963
72
Law enforcement
-
-
-
-
-
-
-
-
10,433
110
Leases and rents
66,152
78,637
75,850
93,814
92,006
90,800
122,070
116,163
129,209
136,939
Interest income
60,651
76,828
90,432
98,064
157,760
182,445
160,617
97,869
131,771
404,942
Donations
18,400
38,000
23,600
40,149
41,024
70,019
66,947
11,498
518,427
8,084
Charges for services
4,535
4,360
2,960
12,975
155,117
23,556
5,008
11,107
2,700
3,472
Other revenues
14,366
41,827
19,063
65,897
86,449
184,022
249,999
720,616
449,760
862,780
Total Revenues
6,951,551
7,733,425
7,883,446
8,377,308
8,591,160
9,187,423
10,008,043
11,933,413
12,712,222
15,754,740
70
Expenditures:
General government
Law enforcement
Fire control
Building inspection
Street
Parks and recreation
Community services
Health and welfare
Other purchased services
Court fund
Parks fund
Capital outlays
Note payable principle payment
Lease and subscription capital outlays
Principal retirement and lease finance
Interest expense
CIAWWC Authority
Total Expenditures
Excess (deficiency) of Revenues over
(under) Expenditures
City of Chubbuck
Changes in Fund
Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
2014
2015
2016
2017 2018
2019
2020
2021
2022
2023
393,539
483,135
574,204
496,074 580,806
621,568
1,303,835
1,072,664
914,597
1,050,464
2,695,807
2,843,478
2,960,661
3,062,347 3,287,172
3,354,522
3,507,675
3,550,335
3,646,501
3,970,167
1,234,101
1,431,180
1,213,866
1,181,308 1,300,583
1,463,484
1,652,703
1,738,732
1,859,209
1,972,237
172,439
174,432
181,199
186,059 212,747
244,749
8,913
395,491
-
-
1,356,339
1,365,190
1,336,127
1,270,359 1,136,919
1,054, 240
1,722,677
1,437,020
1,618,017
1,958, 654
442,246
498,932
513,091
502,709 552,176
530,705
509,997
722,129
727,783
775,584
-
-
-
- -
-
-
-
593,428
482,760
51,165
41,171
76,884
83,293 90,621
80,049
88,129
91,539
-
-
-
-
-
- -
-
-
-
234,872
25,500
350
1,500
150 1,600
-
-
-
-
-
-
-
18,696
- -
17,100
43,181
4,425
-
-
365,442
409,060
333,207
953,944 4,160,478
2,806,886
1,771,351
2,882,122
6,032,716
4,818,282
-
-
-
- -
-
-
-
-
98,047
141,108
87,110
25,648
54,584
3,651
30,527
2,930
458,930
230,930
2,930
-
-
6,714,358
7,705,508
7,440,365
7,739,173 11,323,102
10,173,303
10,608,461
11,894,457
15,797,530
15,323,916
237,193
27,917
443,081
638,135 (2,731,942)
(985,880)
(600,418)
38,956
(3,085,308)
430,824
72
City of Chubbuck
Changes in Fund
Balances of Governmental Funds
Last Ten Fiscal Years
(Modified Accrual -Basis of Accounting)
2014
2015
2016
2017 2018
2019
2020
2021
2022
2023
Other financing sources (uses):
Proceeds from note payable
155,468
11,680
2,930
- -
-
-
-
-
1,000,000
Proceeds from lease and subscription
-
-
-
141,108
98,046
Principal payments
(154,929)
(236,050)
-
-
Proceeds from certificate of participation
152,278
1,749,674
3,666,689
3,665,816
Interest expense
-
- (4,000)
(3,869)
(3,737)
(3,605)
-
-
Proceeds from sale of assets
11,154
21,153
23,953
13,837 99,393
828
6,345
79,272
18,169
Transfers in (out)
(3,000)
-
-
- -
-
-
-
-
Total other financing sources (uses)
8,693
32,833
26,883
(222,213) 95,393
(3,041)
154,886
1,746,069
3,887,069
4,782,031
Net Change in Fund Balances
245,886
60,750
469,964
415,922 (2,636,549)
(988,921)
(445,532)
1,785,025
801,761
5,212,855
Beginning Fund Balances
3,199,632
3,445,518
3,506,268
3,976,232 4,392,154
1,755,605
766,684
322,056
2,107,081
2,908,842
Ending Fund Balances
$ 3,445,518
$ 3,506,268
$ 3,976,232
$ 4,392,154 $ 1,755,605
$ 766,684
$ 321,152
$ 2,107,081
$ 2,908,842
$ 8,121,697
72
City of Chubbuck
General Government Tax and Intergovernmental Revenues by Source
Last Ten Fiscal Years
(modified accrual basis of accounting)
73
Local Tax Revenues
Intergovernmental Revenues
Highway
Total
Local Taxes as
Streets &
Total Local
State Liquor
Highway User's
Court
Shared Sales
Intergovernmental
a Percentage
Fiscal Year
Property Tax
Franchise Tax
Road
Sales Tax
Taxes
Tax
Revenue
Revenue
Road & Bridge
Tax
Taxes
Total Taxes
of Total
2014
$ 4,781,207
$ 203,790
$ 114,496
$ 514,286
$ S,623,276
$ 152,877
$ 467,297
$ 30,815
$ 66,326
$ 185,833
$ 903,148
$ 6,526,424
86%
201S
4,813,441
198,493
-
536,331
S,S48,265
148,641
494,812
3S,312
112,443
265,770
1,056,978
6,605,243
849/
2016
4,164,281
199,194
645,147
566,139
S,S74,761
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%
2020
5,331,506
186,818
853,514
945,996
7,317,834
205,579
718,902
28,081
69,460
193,180
1,215,202
8,533,036
86%
2021
4,000,938
195,483
894,610
-
S,091,031
243,994
941,626
27,335
447,544
1,608,340
3,268,839
8,359,870
61%
2022
5,995,113
254,956
944,984
100,853
7,295,906
223,452
1,043,079
28,549
171,088
1,785,812
3,251,980
10,547,886
69%
2023
$ 6,216,172
$ 250,217
$ 943,665
$ -
$ 7,410,054
$ 225,430
$ 1,071,510
$ 3S,076
$ -
$ 1,777,110
$ 3,109,126
$ 10519,180
70%
73
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
(including exemptions)
Levy Rate
Tax Rate Per $1,000
Value
2014
$ 459,147,628 $
7,502,193
$ 1,138,795 $
236,839,910 $
-
$ 704,628,526
0.009967676
9.97
2015
461,440,210
7,884,559
1,017,251
238,171,372
81,774
708,595,166
0.009933799
9.93
2016
475,051,058
7,702,297
1,697,797
251,008,396
81,774
735,541,322
0.010140122
10.14
2017
507,182,903
8,152,805
469,490
263,554,022
81,744
779,440,964
0.010188661
10.19
2018
524,061,262
8,420,799
2,493,034
275,948,575
-
810,923,670
0.010636971
10.64
2019
638,286,498
8,626,813
221,259
314,458,115
961,592,685
0.009459658
9.46
2020
728,136,576
9,592,530
4,293,710
342,427,509
1,084,450,325
0.006863105
6.86
2021
807,089,713
10,409,910
1,462,151
426,293,840
1,245,255,614
0.008121184
8.12
2022
1,115,638,936
10,613,436
1,509,525
46,894,793
1,174,656,690
0.006204404
6.20
2023
$ 1,362,355,753 $
10,775,944
$ 325,873 $
470,479,400 $
$ 1,843,936,970
0.005964973
5.96
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.
74
City of Chubbuck
Property Tax Rates
Direct and Overlapping (1) Governments
Last Ten Fiscal Years
(per $1,000 of assessed value)
City of Chubbuck
Overlapping Rates
County Road &
Ambulance Service
School District 25
Year Base Rates
Bannock County Rates
Bridge Rates
Abatement Rates
Portneuf Library Rates
Rates
Rates
Combined Levy Rates
2014 9.97
5.30
0.48
0.05
0.57
0.40
4.14
20.91
2015 9.93
5.28
0.85
0.04
0.58
0.40
4.42
21.50
2016 10.14
5.24
0.73
0.03
0.61
0.40
3.94
21.09
2017 10.19
5.37
0.67
0.03
0.58
0.40
3.88
21.12
2018 10.64
5.62
0.47
0.03
0.61
0.40
3.85
21.62
2019 9.46
4.85
0.53
0.03
0.52
0.35
3.33
19.06
2020 6.86
3.68
0.50
0.03
0.53
0.34
3.19
15.13
2021 8.12
4.18
0.45
0.03
0.50
0.32
2.93
16.52
2022 6.20
3.23
0.31
0.02
0.37
0.24
1.87
12.26
2023 5.96
3.01
0.30
0.02
0.36
0.24
1.37
11.27
Source: Bannock County Assessors Office
(1) Overlapping rates are those of local and county governments that apply to owners within the City of Chubbuck.
75
City of Chubbuck
Principal Taxpayers
September 30, 2023
2023 I I 2014
Source: Bannock County Assessors Office
76
Percentage of
Assessed
Total Assessed
Percentage of Total
Taxpayer
Type of Business
Valuation
Rank
Valuation
Assessed Valuation
Rank
Assessed Valuation
IDAHO CENTRAL CREDIT UNION
FINANCIAL INSTITUTE
$ 54,740,000
1
37.17%
$ 17,960,243
1
20.00%
PINE RIDGE MALL JC LLC
RETAIL
17,004,000
2
11.55%
12,380,277
3
13.79%
SHJH LLC
APARTMENTS
13,940,000
3
9.47%
5,303,976.00
8
5.91%
CHUBBUCK WHITAKER LLC
11,516,000
4
7.82%
-
0.00%
WAL MART REAL ESTATE
RETAIL
10,538,000
5
7.16%
9,709,957
5
10.82%
GRACE AT CHUBBUCK LLC
ASSISTED LIVING
9,851,000
6
6.69%
-
0.00%
RATLIFF, GARY
REAL ESTATE INVESTMENTS
8,250,000
7
5.60%
0.00%
AGREE LIMITED PARTNERSHIP
REAL ESTATE INVESTMENTS
8,153,000
8
5.54%
-
-
0.00%
CARMIKE CINEMAS INC.
ENTERTAINMENT
7,013,000
9
4.76%
5,415,904
7
6.03%
HD DEVELOPMENT OF MARYLAND INC
REAL ESTATE DEVELOPMENT
6,264,000
10
4.25%
7,105,536
6
7.91/
NEIBAUER CHUBBUCK HOLDINGS LLC
-
0.00%
12,550,000
2
13.98%
ALLSTATE INSURANCE COMPANY
INSURANCE
0.00%
9,908,263
4
11.04%
SHOPKO REAL ESTATE LLC
RETAIL
0.00%
5,204,568
9
5.80%
EMERITOL RIDGE WIND LLC
DATABASE
0.00%
4,242,947
10
4.73%
Total Top Ten
$ 147,269,000
100.00%
$ 89,781,671
100.00%
Source: Bannock County Assessors Office
76
City of Chubbuck
Ratios of Outstanding Debt by Type
Last Ten Fiscal Years
(accrual basis of accounting)
Note: The estimated populations for years 2012 and 2014 were not available and so the most current estimate was used for these years
Source: (1) U.S. Census
77
Governmental
Activities
Business Type Activities
(1)
Fiscal
General Fund Note
Sanitation
Water Notes
Sewer Note
Total Primary
Estimated
Per
Year
Payable
Notes
Water Bond
DEQ
DEQ
Government
Population
Capita
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
2020
678,292
880,000
8,077,582
11,679,735
21,315,609
15,715
1,356
2021
588,999
745,000
8,278,883
11,035,206
20,648,088
15,842
1,303
2022
-
496,606
605,000
8,257,422
9,974,645
19,333,673
16,032
1,206
2023
912,890
400,781
460,000
8,235,334
9,122,101
19,131,106
16,223
1179.26
Note: The estimated populations for years 2012 and 2014 were not available and so the most current estimate was used for these years
Source: (1) U.S. Census
77
City of Chubbuck
Revenue Bond Coverage
Water Fund
Last Ten Fiscal Years
Debt Service Requirements (3)
Net Revenue
Available for Debt
Fiscal Year Gross Revenue (1) Operating Expense (2) Service Principal Interest Total
2014 2,423,116
1,351,349
1,071,767
110,000
56,574
2015 2,680,920
1,532,822
1,148,098
115,000
52,863
2016 2,783,945
1,535,492
1,248,453
115,000
55,514
2017 2,728,684
1,472,240
1,256,444
120,000
45,443
2018 2,896,320
1,832,479
1,063,841
125,000
34,175
2019 2,983,977
1,744,722
1,239,255
125,000
32,182
2020 2,944,986
1,959,268
985,718
130,000
28,420
2021 3,167,282
1,951,885
1,215,397
135,000
24,507
2022 3,256,843
2,323,718
933,125
140,000
20,445
2023 3,540,200
2,248,996
1,291,204
145,000
16,232
(1) Total revenues ( including interest)
(2) Total operating expenses exclusive of asset deprecation, lease amortization,
and subscription
amortization.
(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.
78
166,574
167,863
170,514
165,443
159,175
157,182
158,420
159,507
160,445
161,232
Coverage
6.43
6.84
7.32
7.59
6.68
7.88
6.22
7.62
5.82
8.01
Pledge of
Revenues
Coverage
Ronin --m lilt
5.15
5.47
5.86
6.08
5.35
6.31
4.98
6.10
4.65
6.41
City of Chubbuck
Statistical Information
Water Fund
September 30, 2023
Schedule of Water Revenue and Production For Residential, Commercial, and Government
Accounts
Total Revenue $ 3,540,200
Estimated number of active customers 4,819
Total water produced (gallons) 988,140
Schedule of Water Rates
Monthly Base Fee (by meter size)
Size Price Circuit Breaker
1" or less $ 29.11 $ 20.38
1.5 " 83.80
2" 129.71
3" 269.79
4" 442.17
6" 893.43
8" 1,399.22
10" 2,137.59
Volumetric charge: $1.40 per 1,000 gallons metered water. Volumetric charge for
circuit breaker: $.98 per 1,000 gallons metered water.
Water Usage Summary
Business
193,471
Car Wash
16,485
City Property
4,822
Church
13,648
County using city property
5,125
Duplex
12,480
Four Plex
31,202
Motel
12,159
Multiple Units
24,802
Unaccupied
5,618
Restaurant
17,284
School
1,918
Single Family
623,722
Three Plex
1,262
Trailer Park
24,142
988,140
79
CITY OF CHLIBBLICK, IDAHO
Ten Largest Water System Customers
For The Fiscal Year Ended September 30, 2023
(per 1,000 gallon used)
% of Total
Water Top Ten % of Total
Customer
Business Type
Rank
Usage
Consumers Usage
Seven Synergy LLC
Staffing Services
1
9,168
16.2%
0.9%
Circle Inn Trailer Park
Mobile Home Park
2
8,735
15.4%
0.9%
Pocatello Motels LLC
Motel
3
6,738
11.9%
0.7%
Camelot Estate
Mobile Home Park
4
6,265
11.1%
0.6%
Pine Ridge Mall JC LLC
Shopping Center
5
5,727
10.1%
0.6%
Pine Ridge Idaho LLC
Apartment Complex
6
4,701
8.3%
0.5%
Pheasant Ridge HOA Inc.
Residential Development
7
4,182
7.4%
0.4%
Fast Stop (Common Cents)
Gas Station/Convenience Store
8
4,065
7.2%
0.4%
Travelodge
Motel
9
3,939
7.0%
0.4%
Pheasant Ridge HOA Inc.
Residential Development
10
3,097
5.5%
0.3%
Total Top Ten Consumers
56,617
100.0%
Total Usage
M
988,140 5.7%
City of Chubbuck
Statistical Information
Sewer Fund
September 30, 2023
Schedule of Sewer Revenue For Residential, Commercial, and Government Accounts
Total Revenue
Schedule of Sewer Rates
Monthly Base Fee
Regular
Residential $ 52.90
NWSI Residential 10.45
$ 5,348,899
Circuit Breaker
$ 37.03
Commercial rate for businesses North of the Interstate is $7.53 per $1,000 gallons of water used.
Commercial rate for businesses South of the Interstate is $8.83 per $1,000 gallons of water used.
NWSI Commercial rate is winter water average usage divided by $6.85 and multiplied by $10.45.
81
SINGLE AUDIT SECTION
APA
CITY OF CHUBBUCK
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For The Fiscal Year Ended September 30, 2023
Federal Grantor/Pass-Through Grantor/Program Title
U.S. Department of Transportation
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 the Treasury
American Relief Plan Act
Coronavirus State and Local Fiscal Recovery Funds
Passed through the Idaho State Controller's Office
Idaho Non -Entitlement Units of Local Government
Passed through the Idaho Dept. of Environmental Quality
Drinking Water Facilities Planning
Total U.S. Department of the Treasury
Total Expenditures of Federal Awards
Assistance Grant Federal
Listing No. Number Expeditures Subrecipients
20.600
SDD23EA
2,339
20.600
SPT23EA
2,043
20.600
SPT23EA
2,822
20.616
SID22EC
927
20.616
SID23EA
2,655
20.616
SID23EB
441
20.616
SID23ED
1,463
20.616
SID23EC
2,471
15,161
15,161
21.027 20-1982-0-1-806 2,881,486
21.027 DWG -282-2023-33 17,955
2,899,441
$ 2,914,602 $
83
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, 2023. 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
by the specific granting agencies.
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.
84
Deaton & Company, Chartered
Certified Public Accountants ME= WA 34 MEL
215 North 91h, Suite A
Pocatello, ID 83201-5278
(208) 232-5825
Members of the Idaho Society of Certified Public Accountants
Members ofthe 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, 2023, 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 May 3, 2024.
Report on Internal Control Over Financial Reaortina
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.
Report on 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
May 3, 2024
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
Opinion on Each Major Federal Program
We have audited City of Chubbuck's compliance with the types of compliance requirements identified as subject
to audit 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, 2023. City of Chubbuck's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of findings and
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, 2023.
Basis for Opinion on Each Major Federal Program
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). Our responsibilities under those standards and the Uniform Guidance are
further described in the Auditor's Responsibilities for the Audit of Compliance section of our report.
We are required to be independent of City of Chubbuck and to meet our other ethical responsibilities, in
accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have
obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of City of Chubbuck's compliance with the compliance
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of laws,
statutes, regulations, rules, and provisions of contracts or grant agreements applicable to City of Chubbuck's
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance
requirements referred to above occurred, whether due to fraud or error, and express an opinion on City of
Chubbuck's compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is
higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred
to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about City of Chubbuck's
compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform
audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence
regarding City of Chubbuck's compliance with the compliance requirements referred to above and performing
such other procedures as we considered necessary in the circumstances.
Obtain an understanding of City of Chubbuck's internal control over compliance relevant to the audit in order to
design audit procedures that are appropriate in the circumstances 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 City of Chubbuck's internal control over compliance. Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control
over compliance that we identified during the audit.
Report on 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 Auditor's
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies in
internal control over compliance that might be material weaknesses or significant deficiencies in internal control
over compliance. Given these limitations, during our audit we did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses
or significant deficiencies in internal control over compliance may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, no such opinion is expressed.
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
May 3, 2024
CITY OF CHUBBUCK, IDAHO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2023
SUMMARY OF AUDIT RESULTS
1. The auditor's report expresses an unmodified opinion on whether the financial statements of City of
Chubbuck were prepared in accordance with GAAP.
2. No reportable conditions disclosed during the audit of the financial statements are reported in the
Independent Auditor's Report.
3. No instances of noncompliance material to the financial statements of City of Chubbuck were
disclosed during the audit.
4. No significant deficiencies or material weaknesses, in internal control over major federal award
programs, were noted which would be required to be reported during the audit.
5. The Auditor's report on compliance for the major federal award programs for City of Chubbuck
expresses an unmodified opinion on all major federal programs.
6. Audit findings that are required to be reported in accordance with 2 CFR section 200.516(a) are
reported in this Schedule.
7. The program tested as a major program included U.S. Department of the Treasury, Assistance listing
#21.027
8. The threshold for distinguishing Types A and B programs was $750,000.
9. City of Chubbuck was considered a high-risk audited.
FINDINGS — FINANCIAL STATEMENT AUDIT
None
FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL AWARD PROGRAM AUDIT
None
SUMMARY SCHEDULE OF PRIOR YEAR AUDIT FINDINGS
FINDINGS — FINANCIAL STATEMENT AUDIT
None
FINDINGS AND QUESTIONED COSTS — MAJOR FEDERAL AWARD PROGRAM AUDIT
None