HomeMy WebLinkAbout2018 City of Rexburg Idaho - Financial Statements - Combined SIGNED
CITY OF REXBURG, IDAHO
_______________
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
WITH
INDEPENDENT AUDITOR’S REPORT
YEAR ENDED SEPTEMBER 30, 2018
_______________
CITY OF REXBURG, IDAHO
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS' REPORT ....................................................................... 1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................. 4-20
BASIC FINANCIAL STATEMENTS:
Statement of Net Position – Government Wide ......................................................... 22
Statement of Activities – Government Wide .............................................................. 23
Balance Sheet – Governmental Funds...................................................................... 24
Reconciliation of the Balance Sheet of Governmental Funds to
The Statement of Net Position ............................................................................... 25
Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds .......................................................................... 26
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances of Governmental Funds to the
Statement of Activities ........................................................................................... 27
Statement of Net Position – Proprietary Funds ......................................................... 28
Statement of Revenues, Expenses, and Changes in Fund
Net Position – Proprietary Funds ........................................................................... 29
Statement of Cash Flows--Proprietary Funds ........................................................... 30
Notes to Financial Statements:
1 Summary of Significant Accounting Policies .................................................. 31-36
2 Cash and Short-term Investments ................................................................. 36-39
3 Capital Assets ................................................................................................ 40-41
4 Revolving Loans Receivable .............................................................................. 42
5 Property Taxes .............................................................................................. 42-43
6 Accrued Compensated Absences/Post Employment Health Plan ...................... 43
7 Health Reimbursement Arrangement (HRA) ....................................................... 44
CITY OF REXBURG, IDAHO
TABLE OF CONTENTS (Continued)
8 Local Improvement Assessments ....................................................................... 44
9 Local Improvement District Warrants Payable ............................................... 44-45
10 Wastewater Revenue Bonds Payable ................................................................ 46
11 Water DEQ Loan Payable .................................................................................. 46
12 Obligations Under Capital Leases ...................................................................... 47
13 Changes in Long-term Obligations ..................................................................... 48
14 Bonded Debt Repayment Requirements ............................................................ 49
15 Retirement Plans ........................................................................................... 49-60
16 Other Required Individual Fund Disclosures ................................................. 60-61
17 Component Unit--Rexburg Urban Renewal Agency ...................................... 61-63
18 Interfund Transactions ................................................................................... 64-66
19 Lease with Hospital ............................................................................................ 67
20 Fund Balances……………………………………………………………………..67-69
21 Fund Balance Classifications.............................................................................. 69
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule – General Fund .................................................... 71
Budgetary Comparison Schedule – Street Fund ....................................................... 72
Budgetary Comparison Schedule – Emergency Services Fund ................................ 73
Schedule of Employer’s Share of Net Pension Liability
And Employer Contribution – PERSI Base Plan ....................................................... 74
Schedule of Employer’s Share of Net Pension Liability
And Employer Contribution – FRF Base Plan ........................................................... 75
Schedule of Employer’s Share of Net Pension Liability
And Employer Contribution – FRF Excess Plan ........................................................ 76
OTHER SUPPLEMENTARY INFORMATION:
Combining Balance Sheet – Nonmajor Governmental Funds .............................. 78-82
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds ........................ 83-87
Schedule of Expenditures of Federal Awards ........................................................... 88
Notes to Schedule of Expenditures of Federal Awards ............................................. 89
CITY OF REXBURG, IDAHO
TABLE OF CONTENTS (Continued)
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 ...................... 90-91
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE
FOR EACH MAJOR PROGRAM AND ON INTERNAL
CONTROL OVER COMPLIANCE REQUIRED BY THE
UNIFORM GUIDANCE ......................................................................................... 92-94
Schedule of Findings and Questioned Costs ....................................................... 95-96
Schedule of Prior Year Findings and Questioned Costs ........................................... 97
1
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Rexburg, Idaho
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, the aggregate discretely presented component units, each major fund, and
the aggregate remaining fund information of City of Rexburg, Idaho, as of and for the year ended
September 30, 2018, and the related notes to the financial statements, which collectively comprise
the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal control relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Those standards require that
we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and
disclosures in the financial statements. The procedures selected depend on the auditor’s judgment,
including the assessment of the risks of material misstatement of the financial statements, whether
due to fraud or error. In making those risk assessments, the auditor considers internal control
relevant to the entity’s preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but not for the purpose of
expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, we express
no such opinion. An audit also includes evaluating the appropriateness of accounting policies used
and the reasonableness of significant accounting estimates made by management, as well as
evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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Basis for Qualified Opinion
Management has not included negative fund balances as unassigned fund balances in the City’s
financial statements as outlined in footnote 19. Accounting principles generally accepted in the
United States of America require all negative fund balances be classified as unassigned funds in
the governmental funds statements. The City’s management feels that it is more consistent and
useful to show the negative fund balances in the appropriate fund type.
Opinions
In our opinion, except for the effects of the matter described in the “Basis for Qualified Opinion”
paragraph, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining
fund information of the City of Rexburg, Idaho, as of September 30, 2018, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis, budgetary comparison information and schedule of
pension liabilities and contributions which are listed in the table of contents be presented to
supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards
generally accepted in the United States of America, which consisted of inquiries of management
about the methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or
provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Rexburg, Idaho’s basic financial statements. The combining and
individual nonmajor fund financial schedules are presented for purposes of additional analysis and
are not a required part of the basic financial statements. The schedule of expenditures of federal
awards is presented for purposes of additional analysis as required by Title 2 U.S. Code of Federal
Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards, and is also not a required part of the basic financial statements.
The combining and individual nonmajor fund financial schedules and the schedule of expenditures
of federal awards 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
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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, the
schedules of loans payable 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March
4, 2019, on our consideration of the City of Rexburg, Idaho’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 the City of Rexburg, Idaho’s internal control over financial reporting and compliance.
Rexburg, Idaho
March 4, 2019
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Management’s Discussion and Analysis
Matthew K. Nielson, Chief Financial Officer
Our discussion and analysis of the City of Rexburg’s financial performance provides an overview of
the City’s financial activities for the fiscal year ended September 30, 2018. Please read this in
conjunction with the City’s financial statements, which begin on page 22.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at
September 30, 2018 by $112,486,696.
Of this amount, ($4,378,864) of unrestricted net position and $29,666,161 of restricted
assets is available to meet the City’s ongoing obligations to citizens and creditors.
The City’s net position increased $6,915,633 as a result of this year’s operations, which
includes an increase of governmental type net position by $4,339,184 and of business-type
net position by $2,576,449.
At fiscal year end, the City’s governmental funds reported combined ending fund balances
of $15,384,979, an increase of $2,195,825 from last year.
The General Fund Balance was $4,920,728 or 43.86% of the total General Fund
Expenditures and Fund Transfers. This leaves just over a 5 month reserve in place. This is
a 9.61% increase over the prior year. Of this balance, $322,400 was appropriated in the
budget of the following fiscal year.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Government-wide Financial Statements are presented in a format designed to provide a
broad overview in a business-like manner. These statements include all assets and liabilities using
full accrual accounting, which is similar to accounting used by most large businesses. Full accrual
accounting reports all of the current year’s revenues and expenses when they are obligated,
regardless of whether or not cash has yet been received or paid out. You will also need to
consider non-financial factors, such as changes in the City’s property tax base and the condition of
its streets, to assess its overall health.
These statements distinguish functions that are principally supported by taxes and inter-
governmental revenues (governmental activities) from functions that are supported by user fees
(business-type activities). Governmental activities include: general administration, public safety,
streets, parks, recreation, arts, and community development. The business-type activities include:
water, wastewater (sewer), and sanitation (garbage). The golf courses were reclassified in 2017 to
a governmental activity, rather than a business-type activity.
The government-wide financial statements also include separately the financial information of the
Rexburg Redevelopment Agency as a component unit.
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The Statement of Net Position presents information on all of the City’s assets, liabilities, and
deferred inflows/outflows of the City. The difference between them is called the Net Position. Over
time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating.
The Statement of Activities defines the change in Net Position by reporting expenses of the
different functions of the City and related revenues. Here expenses are listed before revenues in
order to emphasize that in City government, revenues are generated to support the different
functions and are not the driving force, service needs or functions are. The City is not here to
make a profit, unlike business; it first identifies the service needs of its citizens and then raises the
resources to meet those needs.
Fund Financial Statements are used to maintain control over resources that have been
segregated for specific activities, objectives or as may be required by law or grant or bond
agreements. Major funds are shown in separate columns and include the General Fund, Streets,
Emergency Services, Water, Wastewater, and Sanitation; all other funds are non-major funds and
are summarized in one column. Details of the non-major funds are shown under Other
Supplementary Information on pages 78-87 of this report. All of the funds of the City are also
divided into two categories, governmental or enterprise (business-type).
Governmental Funds Financial Statements focus more on current inflows, outflows and
balances (reporting more on a cash/partial accrual accounting basis instead of a full accrual basis)
rather than on long term effects on net position, such as depreciation might have, which is included
in the Government-wide Statements. The City maintains 72 active funds, 64 are governmental
funds and 8 are categorized as Enterprise Funds, which are the Utility funds.
Enterprise Funds Financial Statements are used to report the business-type activities
(supported by user fees) of the City that include the Utility Funds. These funds are reported on a
full accrual basis, which is the same as the business-type accounting used in the Government-wide
Financial Statements for all funds, but include more detail here.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
For the years ended September 30, 2018 and September 30, 2017, Net Position changed as
follows:
Governmental Business-type All
Activities Activities Activities
Net Position 9/30/17 $ 61,960,328 $ 43,610,735 $105,571,063
Increase in Net Position $ 4,339,184 $ 2,576,449 $ 6,915,633
Net Position 9/30/18 $ 66,299,512 $ 46,187,184 $112,486,696
Percent Increase 7.00% 5.91% 6.55%
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Large item (over $50,000) increases came from:
Street Sweeper $ 269,727
Police Training/Storage Building Improvements $ 87,323
Air Packs-Fire $ 354,713
1944 Howard DGA Airplane $ 55,000
Garbage Truck $ 230,313
Clean/Repair/Paint Water Tank-2nd E $ 253,975
Water Meters $ 112,761
Load-All/Telehandler $ 116,573
Summerfield Sewer Lift Station $ 110,875
Sewer Misc. Line Replacements $ 56,221
LID Projects-Wastewater Portion $ 105,912
Field Lighting-Riverside Park-Phase I $ 227,518
Center Street Project Final:
Reconstruct Sidewalk/Curb and Gutter $ 16,904
Trees/Landscape/Fire Pits $ 33,082
Reconstruct Street $ 155,805
Total Center Street Project 2018 (Final Phase II) $ 205,791
New Shop 2018 Final Phase $ 115,754
Park Street Playground Improvements:
General Fund Portion $ 26,849
Impact Fee Fund Portion $ 70,000
Total Park Street Playground Improvements $ 96,849
Park/Trail Plan Study $ 65,908
Restrooms – Evergreen Park $ 161,793
Riverside Field Lighting Project-Final Phase $ 152,554
Water System Upgrade Project:
Contracted Design/Engineering $ 116,410
Water Reservoir Construction $ 995,580
New Well Construction (2) $ 312,614
Booster Station Construction $ 5,062
Water Line Replacement/Expansion $ 96,067
Non-Grant Water Projects $ 18,088
SCADA Water Upgrade $ 106,596
In-house Engineering $ 8,282
Total Water System Upgrade Project 2018 (Phase III) $ 1,658,699
Seal coat and Chip Seal Street Projects $ 197,100
Reconstruct Road-2nd E-Yellowstone to Stat. Rd-PH 1 $ 50,670
CRABS Reconstruct-2nd E-3rd S to 7th S $ 454,383
Widen/Add Sidewalk-University from Yell. to12th W-URA $ 271,030
Contributed Capital-Streets-From Developers $ 1,650,654
Airport Relocation Master Plan Study Continued $ 76,974
Golf Carts/Used Inventory Purchase $ 229,760
Wastewater Plant improvements $ 336,167
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LID 47-Final:
LID 47-Street reconstruct-5th W-Kennedy to 4th S-Final $ 217,555
LID 47-Street reconstruct-4th W-Main to 1st N-Final $ 49,267
LID 47-Street reconstruct-Ricks Avenue-Final $ 32,402
LID 47-Street reconstruct-2nd W-1st N to 2nd N-Final $ 74,886
LID 47 2018 Final (Phase II) $ 374,110
Also, see Note #3 on page 40 to 41.
Statement of Net Position Comparison (2018 vs. 2017)
Favorable
(Unfavorable)Percent
2018 2017 2018 2017 2018 2017 Change Change
Current Assets 17,617,613$ 15,866,311$ 14,793,470$ 12,971,909$ 32,411,083$ 28,838,220$ 3,572,863$ 12% (1)
Capital, Non-current Assets and Deferred Outflows
of Resources 55,704,132 53,333,266 43,605,539 42,057,922 99,309,671 95,391,188 3,918,483 4% (2)
Total Assets 73,321,745 69,199,577 58,399,009 55,029,831 131,720,754 124,229,408 7,491,346 6%
Current Liabilities 3,049,829 3,594,672 2,140,295 1,606,337 5,190,124 5,201,009 10,885 0%
Noncurrent Liabilities and
Deferred Inflows 3,972,404 3,644,577 10,071,530 9,812,759 14,043,934 13,457,336 (586,598) -4%
Total liabilities 7,022,233 7,239,249 12,211,825 11,419,096 19,234,058 18,658,345 (575,713) -3%
Net Positions:
Capital Assets, Net of
Related Debt 53,993,807 51,685,911 33,205,592 32,073,444 87,199,399 83,759,355 3,440,044 4% (5)
Restricted 14,164,745 11,198,206 15,501,416 13,473,442 29,666,161 24,671,648 4,994,513 20% (6)
Unrestricted (1,859,040) (923,789) (2,519,824) (1,936,151) (4,378,864) (2,859,940) (1,518,924) 53% (6)
Total
Net Positions 66,299,512$ 61,960,328$ 46,187,184$ 43,610,735$ 112,486,696$ 105,571,063$ 6,915,633$ 7%
Notes to Statement of Net Position Comparison
(1) Street Funds accumulated cash and receivables for future projects and increased utility reserves in wastewater and paid out on fewer projects
(2) The business-type increase in capital assets due in large part to water system upgrades
The increase in governmental was due in large part to street projects and contributed capital from developers
(5) The increase in capital assets due in large part to streets capital and the water upgrade projects
(6) The net increase in Restricted and Unrestricted averaged 13.7% due to increases in cash reserves
Activities
TotalGovernmental
Activities
Business-type
Activities
Because the City has not been required by the Governmental Accounting Standards Board
(GASB) to list streets and storm sewers acquired before October 1, 2003, those items are not
included in the Beginning Net Asset amounts under Governmental Activities. All acquisitions of
streets and storm sewers on or after that date will be included. The City may decide in the future to
estimate the historical cost of those previously acquired streets and storm sewers and adjust the
beginning balances at that time.
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A summary of long-term transactions of the City for the year ended September 30, 2018, is as
follows:
Changes in Long-Term Liabilities:
Long-Term Long-Term
Obligations Obligations
September 30, Obligations Obligations September 30,
2017 Incurred Paid 2018
Governmental activities:
Local improvement district
warrants payable (Note 9) 220,000$ -$ (150,000)$ 70,000$
Obligations under capital
Lease (Note 12) - 229,800 - 229,800
Accrued compensated
absences (Note 6) 386,874 45,317 - 432,191
PERSI Net Pension Liability
(See Notes) 3,051,678 82,447 - 3,134,125
Governmental Activity
Long-Term Liabilities 3,658,552$ 357,564$ (150,000)$ 3,866,116$
Business-type activities:
Accrued compensated
absences (Note 6) 55,967$ 4,909$ -$ 60,876$
PERSI Net Pension Liability 570,273 - (71,593) 498,680
(See Notes)
Water DEQ Loan (Note 11) 3,768,693 1,023,826 - 4,792,519
Wastewater revenue bonds
payable (Note 10) 5,890,000 - (655,000) 5,235,000
Business-type Activity
Long-Term Liabilities 10,284,933$ 1,028,735$ (726,593)$ 10,587,075$
Total Governmental and
Business-type Activiites
Long-Term Liabilities 13,943,485$ 1,386,299$ (876,593)$ 14,453,191$
There are currently no outstanding General Obligation Bonds.
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Governmental Activities
The format of the Statement of Activities lists the expenses first and then the revenues with a
resulting Net Expense. The reason for this kind of format is to highlight the relative financial
burden or subsidy of each of the functions on the general revenues of the City, including property
tax, after that function’s specific revenues are subtracted. Below is a comparison of the changes in
the net position from 2017 to 2018.
Statement of Changes in Net Position (2018 vs. 2017)
Favorable
(Unfavorable)Percent
2018 2017 2018 2017 2018 2017 Change Change
Revenues:
Program Revenues:
Charges for Services & Taxes
General &
Administrative 4,740,382 4,258,013 4,740,382 4,258,013 482,369 11% (1)
Public Safety 2,484,197 2,421,215 2,484,197 2,421,215 62,982 3%
Parks, Rec. Golf &
Cultural Arts 1,266,311 1,179,753 1,266,311 1,179,753 86,558 7%
Streets 3,866,346 3,631,238 3,866,346 3,631,238 235,108 6%
Water 2,719,516 2,676,567 2,719,516 2,676,567 42,949 2%
Waste Water 4,701,553 4,078,354 4,701,553 4,078,354 623,199 15% (2)
Sanitation 2,369,559 2,118,607 2,369,559 2,118,607 250,952 12% (3)
Total 12,357,236 11,490,219 9,790,628 8,873,528 22,147,864 20,363,747 1,784,117 9%
Operating Grants and Contributions
General &
Administrative 399,043 476,755 399,043 476,755 (77,712) -16%
Public Safety 2,330,313 2,263,225 2,330,313 2,263,225 67,088 3%
Parks, Rec. Golf &
Cultural Arts 86,099 27,434 86,099 27,434 58,665 214%
Streets - -
Total 2,815,455 2,767,414 - - 2,815,455 2,767,414 48,041 2%
Capital Grants & Contributions
General &
Administrative 262,983 89,791 262,983 89,791 173,192 193%
Public Safety 356,036 237,725 356,036 237,725 118,311 50%
Parks, Rec. Golf &
Cultural Arts 755,570 732,625 755,570 732,625 22,945 3%
Streets 3,068,021 2,587,259 3,068,021 2,587,259 480,762 19% (4)
Water 748,528 1,010,105 748,528 1,010,105 (261,577) -26% (5)
Waste Water 1,258,296 989,141 1,258,296 989,141 269,155 27% (6)
Total 4,442,610 3,647,400 2,006,824 1,999,246 6,449,434 5,646,646 802,788 14%
General Revenues:
Property Taxes 4,674,929 4,357,967 4,674,929 4,357,967 316,962 7%
Franchise Fees 379,666 445,097 379,666 445,097 (65,431) -15%
State Taxes 1,748,792 1,604,834 1,748,792 1,604,834 143,958 9%
Investment
Earnings 29,433 28,852 202,632 101,707 232,065 130,559 101,506 78%
Miscellaneous 18,453 14,528 18,453 14,528 3,925 27%
Total 6,851,273 6,451,278 202,632 101,707 7,053,905 6,552,985 500,920 8%
Total Revenues 26,466,574 24,356,311 12,000,084 10,974,481 38,466,658 35,330,792 3,135,866 9%
Governmental Business-type
Activities Activities Total
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Statement of Changes in Net Position (2018 vs. 2017)
Favorable
(Unfavorable)Percent
2018 2017 2018 2017 2018 2017 Change Change
Expenses:
General &
Administrative 5,908,730 5,241,073 5,908,730 5,241,073 (667,657) -13% (7)
Public Safety 9,291,819 8,475,098 9,291,819 8,475,098 (816,721) -10% (8)
Parks, Rec. & Arts 2,977,852 2,740,219 2,977,852 2,740,219 (237,633) -9%
Streets 3,948,989 4,242,039 3,948,989 4,242,039 293,050 7%
Water 2,804,149 2,492,575 2,804,149 2,492,575 (311,574) -13% (9)
Waste Water 4,567,237 4,168,009 4,567,237 4,168,009 (399,228) -10% (10)
Sanitation 2,052,249 1,905,194 2,052,249 1,905,194 (147,055) -8%
Total Expenses 22,127,390 20,698,429 9,423,635 8,565,778 31,551,025 29,264,207 (2,286,818) -8%
Increase in
Net Positions 4,339,184 3,657,882 2,576,449 2,408,703 6,915,633 6,066,585 849,048 14%
Net Position-Beginning 61,960,328 58,302,446 43,610,735 41,202,032 105,571,063 99,504,478 6,066,585 6%
Net Position-Ending 66,299,512 61,960,328 46,187,184 43,610,735 112,486,696 105,571,063 6,915,633 7%
Notes to Statement of Changes in Net Position
(1) Due to increased revenues primarily in Community Development and overhead charges
(2) Substantially due to rate increases
(3) Due in part to rate increase, but largely due to increase in customers and volume
(4) Decrease in URA contributions, increase in developer contributed capital, and large increase in impact fee revenues
(5) Decrease in DEQ loan proceeds foregiveness because of lower project costs than prior year
(6) Due to outside contributions and an increase in Sewer Capacity fees over prior year
(7) Small increases in many departments with a larger increase in Information Technology
(8) Small increases in police operations and large increase in capital with the Police Training/storage building improvements
Largest increase from Fire Department ($220 K from operations and $354 K from Airpacks)
(9) Increased operating costs and added an additional full time employee
(10) Increased operating costs for WWTP mostly due to repairs and power and overhead
Increased operating costs for Collections mostly due to personnel and operating costs and overhead
Total
Governmental Business-type
Activities Activities
Below are some details about some of the activities found in the Statement of Activities.
Governmental Activities
General and Administrative
(Mayor & City Council, Economic Development, Customer Services, Information Systems,
Financial Management, Human Resources, Building Maintenance, Legal, Planning and Zoning,
Engineering, GIS, Building Safety, Shop, and miscellaneous other departments).
A majority of these departments’ expenditures is offset by related revenues.
Public Safety
(Police and Emergency Services)
It is important to note that the Police and Fire functions create the most financial burden on the
general revenues, but, customarily, that is what property tax is for. In an effort to provide the most
efficient and effective funding of fire and ambulance services in Madison County, the City of
Rexburg, the Madison County Ambulance District, and the Madison County Fire Protection District
have formed a joint venture doing business as the Madison Fire Department. Madison County
reimburses the City for Ambulance expenses and its portion of shared expenses. Madison County
Fire Protection District also reimburses the City for its portion of shared expenses.
Parks, Recreation and Cultural Arts
The Parks Department is mostly funded by General Revenues. Only about $9,100 was taken in as
parks reservation fees in 2018.
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The Recreation Administrative expenses are heavily subsidized by General Revenues, while the
Recreation Programs are intended to be self-sufficient. In 2018, a transfer of over $74,331 from
the general fund was made to subsidize 2018 losses in the recreation program fund. $46,049 of
this transfer covered the building lease and operating deficit for “The Zone Rexburg Recreation
Center,” which has now introduced a new venue “Kidsburg.” We would anticipate that the Zone
activities will continue to need to be subsidized each year.
In 2018, the Golf Course, which is jointly owned by the City of Rexburg and Madison County,
entered into a new contract with the prior Golf Manager. Under the new contract, the city took back
the range and cart revenue sources as well as the cost of maintenance of the course. The City
and County jointly purchased 60 golf carts that are now owned and maintained by the owners. We
expect to better address capital needs and be able to reduce operating losses at the courses under
this new model.
In 2018 the operating fund of the water park Rexburg Rapids experienced an operating loss of
approximately $27,600. The City Council also transferred $65,000 from the general fund that will
be kept in reserve for future major capital projects or repairs at the water park. When Rexburg
Rapids was opened in 2011, a $99,000 reserve was put in place to cover operating losses. In
2017 the $99,000 reserve was exhausted. In 2018, the eight year combined operating loss
reached an amount of $153,661, which means Rexburg Rapids has operated with an average loss
of $19,208 per year in its first eight seasons.
Cultural Arts includes the Tabernacle Civic Center and Museum of Rexburg (formerly Teton Flood
Museum), the Legacy Flight Museum, the Romance Theater, the Rexburg Orchestra, and the
Rexburg Cultural Arts fund. The Cultural Arts Funds are also heavily subsidized by general
revenues and taxes. The Cultural Arts Funds were subsidized approximately $225,960 in 2018 by
the general fund. Major projects occurred and will continue to occur as part of our capital
improvement plan at the Romance Theatre over the next few years, which is part of the subsidy
above.
Streets
The Street Department is funded by State Highway User Fees, County Road & Bridge Property
Taxes, and other charges and is not subsidized by General Revenues, except for 82.9% of the
Rocky Mountain Power franchise fees that have been allocated to that fund. The City has shifted a
portion of these revenues from the general fund to streets over the last few years and hopes to
continue to do so until we reach 100% in an effort to address needed street repairs/replacement
more quickly.
Business-type Activities
Utility Funds
The Utility Departments include the Sanitation, Water, and Waste Water departments. The City
maintains separate Capital Reserve Funds for Water and Wastewater that are funded through
capacity fees and used for large construction projects to expand capacity. In 2010 the City started
a project to expand the Wastewater Treatment plant and wastewater lines to increase capacity and
to also address some other maintenance concerns at the existing plant, which work was
substantially finalized by the end of 2018. The improvements will help eliminate odors, help with
the disposal of bio-solids, and add new capacity as mentioned above.
12
In order to pay for the construction maintenance upgrades and expansion of the plant, the city
secured a revenue bond of 10 million dollars on December 8, 2010, which will be paid back with
capital reserve funds and increases in utility fees.
The utility funds, which include utility operations, water capital reserve, sewer capital reserve, water
capital construction, sewer/water line extension, and the sewer plant construction funds, increased
in cash and short term investments by $891,984, ending the year with a balance of $12,658,200,
which can be seen on the Statement of Net Position.
The City of Rexburg provides wastewater treatment services to the City of Sugar City and the City
of Teton at a per gallon charge that includes operating costs. Both cities have provided their share
of capital up front through the payment of capitalization fees that reserve certain amounts of
capacity for their usage. Those two cities together provide 6.00% of the total monthly billed
revenue for the wastewater department.
Sewer rates were last increased on October 1, 2018. Water rates were last increased on October
1, 2018. Sanitation rates were last increased on October 1, 2017. Water and sewer capacity fees
were last increased March 1, 2017.
We received the final findings of the water facilities planning study at the end of 2015 and began
construction in 2016. The projected improvements will require additional funding beyond that
available in our capital and operating reserve funds. The water upgrades will be funded with a
combination of reserves and a loan from the Department of Environmental Quality (DEQ) of up to
$11,100,000, which includes principal forgiveness of up to $2,211,300. The water project will
provide needed production, storage, and delivery capacity to meet the current water demands and
future water demands as our population grows.
In 2012 the City began to provide curb-side pickup for recycling to single family residents at no
additional cost to the customer. In 2015 the majority of single family residents were receiving the
recycling option. The Recycling Program is a joint effort with Brigham Young University Idaho and
a third party vendor. In 2014, 2015, and 2016 it became necessary to increase the recycling
contract expenses in order to maintain the program at its current service level. There was no
increase in recycling costs in 2017, but a substantial increase in fees in 2018 was necessary
because the vendor was no longer able to sell all recyclables and was forced to pay tipping fees for
some items, which costs were passed on to the city. The city is not currently seeking to add the
recycling option to commercial and multi-family users because the costs have increased and the
value of the recycled products has dropped. When we recycle goods, it reduces the Madison
County tipping fees expense we would otherwise pay for disposing goods.
FUND FINANCIAL STATEMENT ANALYSIS
As noted earlier, the City of Rexburg uses fund accounting to ensure and demonstrate compliance
with legal, grant and budget requirements.
Governmental Funds
The focus of the City of Rexburg Governmental Funds is to provide information on current year
cash flows and balances. Such information is useful in assessing the City’s current year financing
requirements. In particular, unassigned fund balances that are not held for emergencies or cash
flow purposes, may serve as a useful measure of the City’s net resources available for spending at
the end of the fiscal year that could be added to expected revenues for the following fiscal year.
13
The General Fund Balance (see page 71) increased by $431,495 during the year, due primarily to
actual expenses lower than the final expenses budgeted.
The Street Funds’ Balances (see page 72) decreased by $232,488, leaving a fund balance of
$2,981,754. The fund balance will be carried over for projects that are already planned and
budgeted for in future years. A significant portion of the fund balance is from receivables due from
the Urban Renewal Agency for a project that was substantially completed in fiscal year 2014 on the
corner of 2nd West and 1st North and another project substantially completed from 2015 to 2016 on
2nd east near the new Walmart. We anticipate the full payoff of these receivables by 2020.
The Emergency Services Fund (see page 73) is financed by three entities: the City of Rexburg (for
fire suppression services), the Madison County Fire Protection District, and the Madison County
Ambulance District. All expenditures are billed to the three entities based on the benefit received
by each. The fund balance is normally always zero because the three entities reimburse all
expenditures. The Emergency Services Fund ended the fiscal year $119,457 over budget.
Police, Fire, Parks and Street Development Impact Fees were collected in the amounts of $97,053,
$98,230, $895,325, and $493,022 respectively, totaling $1,583,630 for qualified capital
improvements in those departments. It is important to illustrate the need for impact fees by looking
at the fund balances of each respective fund to determine the health of those funds in providing the
necessary capital to meet the demands of the growth in our community and its impact on our
current service levels. At the end of the fiscal year 2018, the Police Impact Fee Fund was at a
deficit of ($28,342) due to the storage/training facility purchase/improvements. The Fire Impact
Fee Fund had a balance of $85,993, which will help fund the future replacement of fire engines and
expansion or addition of fire stations. The Parks Impact Fee Fund balance was $1,133,376 and is
being accumulated for future projects, such as the addition of a baseball/softball quad at
Community Fields and a possible future park location, which we hope to acquire in the next few
years. A park/trail study was performed in 2018. The Street Impact Fees Fund balance is normally
zeroed out as the expenses of qualified projects typically surpass the revenues provided from the
Street Impact fees, however at this time, there is a current available balance that can be used for
qualified street projects of $1,423,579.
The Joint Fire Equipment Fund has a positive fund balance of $410,524, which comes from
contributions by the City and the Madison County Fire Protection District. These funds are for
future purchases of fire equipment and facilities.
The GIS (Geographic Information System) Fund was first created in 2004 to track the funding of
the joint City/County GIS Department on a 50/50 financing split.
The Golf Fund was reclassified to a governmental type fund from a business-type fund in 2017,
and is not considered a major fund. Reports for the golf funds can be found in the combining
statements. The golf courses, Teton Lakes of 27 holes and the Municipal Course (renamed in 2016
the “Legacy Golf Course”) of 9 holes, are jointly owned and managed by the City of Rexburg and
Madison County. Their governing boards appoint a Golf Board consisting of 6 citizens and a
member of each of the governing boards to act as a liaison to the Board. At the end of the fiscal
year, together, the Golf Fund and Golf Construction Fund had a cash deficit of $513,322 (a
decrease of $103,424 over the prior fiscal year), which was covered by a loan from the City, half of
which is guaranteed by the County. There was a transfer of $50,096 to the Golf Course
Construction Fund at the end of the fiscal year from the Golf Operations Fund that will be used to
pay back the first year payment due in 2019 for the golf carts purchased with a loan from the
city/county. The City and County did reduce the deficit $20,000 each (total of $40,000) with
14
transfers from their general funds, which we plan to continue to do in the future. As mentioned
above, the City and County renegotiated the golf contract with the Golf Manager and expect to
make some financial changes that will allow the golf course to operate in the black and help us
address some necessary capital needs in the near future.
Proprietary Funds
The City of Rexburg proprietary fund statements provide the same type of information found in the
government-wide statements, but in more detail.
At the beginning of Fiscal Year 2015 it was decided to segregate the Sanitation, Water and
Wastewater Departments from the Utility Operations Fund (Fund 25). Fund 25 is the Sanitation
Fund, Fund 26 the Water Operations Fund, and Fund 27 the Wastewater Operations Fund. These
operating funds ended the year with net income of $3,918,803, of which $0 was due to contributed
assets from developers.
The Utility Operations Funds increased in cash by $7,596, ending the year with a balance of
$9,512,343 in cash and investments. The Sanitation Fund ended with a balance of $916,251. The
Water Operation Fund ended with a balance of $5,118,750, which was a decrease of $859,187
over the prior year. The City expects to use a significant portion of the water operating reserves for
construction projects in 2019 and 2020.
The Wastewater Operations Fund ended with a balance of $3,477,342, which was an increase of
$659,953 from the prior year.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City strives to maintain a total general fund committed fund balance equal to a minimum of
25%, or greater, of general fund budgeted expenditures for the last ended fiscal year for the
necessary cash flow, for unforeseen emergencies, and to mitigate current and future risks. At the
end of 2018, the fund balance was 43.85% of the 2018 actual expenses.
Revenues
Total Budget of Revenues $11,941,600
Budgeted Cash Carryover (Deficit) $ 347,000
Budgeted Revenues Expected Net of Carryover $11,594,600
Actual Revenues received $11,653,852
Surplus (Deficit) of Revenues vs. Budget $ (287,748)
Expenditures
Total Budget of Expenditures $11,941,600
Actual Expenditures $11,222,357
Under (Over) Budget $ 719,243
Excess (Deficiency) of Revenues over Expenditures $ 431,495
Fund Balance
Beginning Fund Balance $ 4,489,233
Ending Fund Balance $ 4,920,728
15
However, some individual accounts showed variations that are notable:
Significant Revenues Overage (Shortage)
Property Tax $ 115,609
Franchise Fees $ (23,334)
Sales Tax $ 137,092
Investments/Unrealized Gain (Loss) $ (116,954)
Purchase Card/E-Payables Rebate $ 26,514
Shop Overhead $ (71,407)
Significant Expenditures Under (Over) Budget
Economic Development $ 41,764
Customer Services $ 66,504
Information Technology $ 36,916
Financial Management $ 118,296
Police Administration $ 39,377
Shop $ 67,007
Transfer to Golf Operations $ (36,800)
Transfer to Cultural Arts $ (32,046)
Transfer to Romance Theater $ 113,420
Transfer to Tabernacle $ 78,966
STREET FUND BUDGETARY HIGHLIGHTS
Revenues
Total Budget of Revenues $ 8,922,100
Actual Revenues received $ 6,635,938
Surplus (Deficit) of Revenues vs. Budget $ (2,286,162)
Expenditures
Total Budget of Expenditures $ 8,922,100
Actual Expenditures $ 6,868,426
Surplus (Deficit) of Expenses vs. Budget $ 2,053,674
Excess (Deficiency) of Revenues vs. Expenses $ (232,488)
Fund Balance
Beginning Fund Balance $ 3,214,242
Ending Fund Balance $ 2,981,754
However, some individual accounts showed variations that are notable:
Significant Revenues Overage (Shortage)
Franchise Fees-Rocky Mountain Power $ 61,687
State Highway User Funds $ 94,310
Development Impact Fees $ 445,325
Transfer in-Street Operations to Street Repair Fund $ 375,926
Contributions in New Street Fund $ 126,111
Contributed Capital (new finished streets) $ 1,150,654
Urban Renewal Reimbursements $ (593,858)
16
Transfer in-Street Operations to New Street Constr. Fund $ (200,000)
Transfer in-Street DIF to New Street Constr. Fund $ (796,900)
Significant Expenditures Under (Over) Budget
Street Operations - Capital $ 109,131
Street Operations – Other- Over on Transfer to
Shop Construction Fund and Street Repair Fund $ (392,057)
Fund TFR – DIF to New Street Fund $ 938,253
Reconstruct 2nd E-Yellowstone to Stationary Rd $ 1,134,330
2nd E- 3rd S to 7th S- Crabs Reconstruction $ 185,617
Sidewalk/Widen Rd-UNIV-YELL.to-HIGHSCHOOL-URA $ (96,030)
Traffic Signal Upgrade-University/Yellowstone-URA $ 201,225
Right of Way Purchase-University to Sunrise-URA $ 500,000
5th W-Univ-7th S-Widen Road/C&G $ 588,052
Contributed Capital (new finished streets) $ (1,150,654)
EMERGENCY SERVICES DEPARTMENT FUND BUDGETARY HIGHLIGHTS
The City of Rexburg, through an agreement with Madison County Fire Protection District and the
Madison Ambulance District, is responsible for the administration and accounting of the Emergency
Services Department (ESD) operations. A governing board made up of one elected official from
each entity plus a doctor, sets policies as needed for the department.
ESD Fund Revenues are almost all provided by the sharing of costs by three entities: the City of
Rexburg and the Madison Fire Protection District through an Operating Transfer in, and the
Madison Ambulance District through warrants paid to the City. Costs are reimbursed based on
benefits received by the three entities. The ESD Department utilized ambulance and fire
equipment on site at various wild land fires throughout the state and nation. For their work, the
respective entity that supplied equipment received reimbursement revenues that helped reduce the
shared costs needed by the three entities that fund the ESD operations. They also sent out
personnel to help in the wild land fire efforts and received reimbursement revenues to cover the
wages and benefits paid to the employees.
The Madison Ambulance District paid approximately 47% of the costs during the past fiscal year.
The City and the Madison Fire District each paid about 32% and 21% respectively.
ESD Operating Fund Revenues and Expenses were both approximately $119,457 over budget –
both because this fund is usually zeroed out at the end of the year and any savings or overruns are
shared by the three entities immediately. The City’s share of the net expenses was $964,073 of a
$951,900 budget, or $12,173 over budget.
REXBURG URBAN RENEWAL AGENCY
Separately issued financial statements for the Rexburg Urban Renewal Agency, a component unit
of the City of Rexburg is available at the City offices.
17
The Actual Total Expense pie chart shows the relative size of the departments or categories of
expenses. Each Total Expense category includes both operating expense and capital purchase
expense. Operating Expense does not typically include capital expense and is the amount needed
to fund the day to day operations of the City. Capital Expense is usually defined as an expense if
the benefit or item purchased is expected to last two or more years and is depreciated over
multiple years as determined by the cities depreciation schedule.
Construction is generally the largest piece of the pie each year and is capital in nature, but varies
widely from year to year in amount, due to the available funding and the particular needs of that
year. Fund Transfers are made between different funds to pay for charges for services given or to
fund the deficit position of particular funds with a transfer from the General Fund.
The total expenses in 2018 decreased by approximately $8.82 million dollars compared to 2017.
This was due in large part to fewer capital projects in the sewer and water department and fewer
transfers related to construction. We did see higher construction related expenses in streets over
the prior year as well. Golf had a large increase over the prior year as well as we purchased carts
and moved to a new contract and model to help improve the finances and condition of the course.
18
The Actual Total Revenue pie chart shows the relative size of the categories of revenue by source.
Total Revenue categories include both operating revenue and revenue that is restricted to capital
purchases. Operating Revenue does not include revenue reserved for capital purchases and is
the amount needed to fund the day to day operations of the City. Capital Revenue is usually
defined as: revenue reserved to be used on purchases that are expected to last two or more years.
Fund Transfers and Interfund Charges are made between different funds to pay for charges for
services given or to fund the deficit position of particular funds with a transfer from the General
Fund. LID Assessments are revenues charged against particular benefited properties for
improvements made by the City through a Local Improvement District (LID). State Taxes include
Sales Tax and Liquor Tax Revenues that are distributed to the City by the State of Idaho. It is
relevant to point out that Property Tax, however important it is to the financial well being of the City,
is a relatively small part of the Total Revenue Budget. Road & Bridge Tax is property taxes levied
by the County for their Road & Bridge Fund that are turned over by state law to the City. The
amount of tax transferred is equal to half of the Road & Bridge Tax collected on properties within
the City limits.
19
The total revenues in 2018 decreased by almost $8.85 million dollars compared to 2017. This was
due in large part to fewer construction projects in the water and sewer departments, which also
contributed to a significant decrease in fund transfers from the capital and operating reserves from
these respective funds and contributed capital. We had a notable increase in impact fees collected
(50%) in 2018 due to continued growth.
The Actual Operating Expense pie chart shows the relative size of the departments or categories of
operating expense. Operating Expense does not typically include capital expense funds and is the
amount needed to fund the day to day operations of the City.
Public Safety expense, which includes the Police, Fire, and Ambulance Departments, comprises
about 30% of the operating expenses. The Utility Funds, which include the Wastewater,
Sanitation, and Water Departments, account for approximately 32% of the operating expenses.
Streets accounts for 10%, leaving about a 28% for the rest of the departments or categories.
The operating expenses increased by approximately $3.15 million as compared to 2017, with the
largest increase coming in streets (over $870,000), the majority of which was from street repair
contracts. The utility operating funds combined had the next largest operating increase (over
$846,000). The Emergency Services Department saw an operating expense increase of
approximately 12% or $430,600 over the prior year. All other departments, except GIS and Mayor
and Council, saw increases in operating costs in 2018.
20
The Actual Operating Revenue pie chart shows the relative size of the categories of operating
revenues. Operating Revenue does not include moneys meant for capital expense and is the
amount provided to fund the day to day operations of the City.
Utility Charges, which include the Wastewater, Sanitation, and Water user fees, are about 33% of
the total. Property Tax, State Taxes, Franchise Fees and Interfund charges for services (Overhead
Transfers) are general purpose revenues and can be used at the City Council’s discretion. Many of
the other categories specified are each for a special purpose and must be spent according to state
law or agreements signed.
The operating revenues increased by approximately $ 2.34 Million as compared to 2017, with the
largest increases occurring in the operating revenues of the Utility Operating Funds ($948,600
Combined). Property taxes saw an increase of approximately $308,800.
BASIC FINANCIAL STATEMENTS
The Accompanying Notes are an Integral Part of the Financial Statements
22
Component
Unit
(Rexburg
Governmental Business-type Urban Renewal
Activities Activities Total Agency)
ASSETS
Current Assets:
Cash and Short-term Investments 13,589,167$ 12,658,200$ 26,247,367$ 6,355,371$
Receivables 4,004,166 2,135,270 6,139,436 -
Supplies 24,280 - 24,280 -
Total Current Assets 17,617,613 14,793,470 32,411,083 6,355,371
Noncurrent Assets:
Revolving Loan Receivable 864,215 - 864,215 -
Capital Assets:
Capital Assets 89,694,147 66,018,677 155,712,824 2,261,857
Accumulated Depreciation (35,700,340) (22,531,309) (58,231,649) -
Net Capital Assets 53,993,807 43,487,368 97,481,175 2,261,857
Total Noncurrent Assets 54,858,022 43,487,368 98,345,390 2,261,857
TOTAL ASSETS 72,475,635 58,280,838 130,756,473 8,617,228
Deferred Outflows of Resources 846,110 118,171 964,281 -
TOTAL ASSETS AND DEFERRED OUTFLOWS 73,321,745 58,399,009 131,720,754 8,617,228
LIABILITIES:
Current Liabilities:
Accounts Payable 2,514,019 1,175,961 3,689,980 -
Accrued Compensated Absences 432,191 60,876 493,067 -
Accrued Interest Payable 1,787 116,987 118,774 -
Deferred Revenue
Other 23,372 111,471 134,843 -
Current Portion of Long-term
Obligations 78,460 675,000 753,460 417,878
Total Current Liabilities 3,049,829 2,140,295 5,190,124 417,878
Noncurrent Liabilities:
Noncurrent Portion of Long-term Obligations 221,340 9,352,519 9,573,859 4,816,860
Net Pension Liability 3,134,125 498,680 3,632,805 -
Total Noncurrent Liabilities 3,355,465 9,851,199 13,206,664 4,816,860
TOTAL LIABILITIES 6,405,294 11,991,494 18,396,788 5,234,738
DEFERRED INFLOWS OF RESOURCES
Bond issue premium, net of amortization - 137,269 137,269 -
Pension Deferred Inflows 616,939 83,062 700,001 -
TOTAL DEFERRED INFLOWS OF RESOURCES 616,939 220,331 837,270
TOTAL LIABILITIES AND DEFERRED INFLOWS
OF RESOURCES 7,022,233 12,211,825 19,234,058 5,234,738
NET POSITION (DEFICIT):
Invested In Capital Assets,
Net of Related Debt 53,993,807 33,205,592 87,199,399 2,261,857
Restricted for:
Capital projects 11,410,004 2,519,825 13,929,829 -
Debt service 180,543 - 180,543 -
Intergovernmental Agreement 1,079,577 - 1,079,577 -
Operations 1,494,621 12,981,591 14,476,212 -
Unrestricted (1,859,040) (2,519,824) (4,378,864) 1,120,633
TOTAL NET POSITION 66,299,512$ 46,187,184$ 112,486,696$ 3,382,490$
CITY OF REXBURG, IDAHO
STATEMENT OF NET POSITION
GOVERNMENT WIDE
September 30, 2018
Primary Government
The Accompanying Notes are an Integral Part of the Financial Statements
23
Charges Operating Capital
for Services Grants and Grants and
FUNCTIONS/PROGRAMS Expenses and Taxes Contributions Contributions Total
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
General and Administrative 5,908,730$ 4,740,382$ 399,043$ 262,983$ (506,322)$
Public Safety 9,291,819 2,484,197 2,330,313 356,036 (4,121,273)$
Parks, Recreation and Arts 2,977,852 1,266,311 86,099 755,570 (869,872)$
Streets 3,948,989 3,866,346 - 3,068,021 2,985,378$
Total Governmental Activities 22,127,390 12,357,236 2,815,455 4,442,610 (2,512,089)
GENERAL REVENUES:
Property Taxes Levied for General Purposes - 4,674,929 - - 4,674,929
Franchise Fees - 379,666 - - 379,666
State Taxes - 1,748,792 - - 1,748,792
Investment Earnings - 29,433 - - 29,433
Miscellaneous - 18,453 - - 18,453
Total General Revenue - 6,851,273 - - 6,851,273
Total Governmental Activities 4,339,184
NET GOVERNMENTAL ASSETS - BEGINNING BALANCE 61,960,328
NET GOVERNMENTAL ASSETS - ENDING BALANCE 66,299,512$
BUSINESS-TYPE ACTIVITIES
Water 2,804,149$ 2,719,516$ 748,528$ 663,895$
Waste Water 4,567,237 4,701,553 1,258,296 1,392,612
Sanitation 2,052,249 2,369,559 - 317,310
Total Business-type Activities 9,423,635 9,790,628 - 2,006,824 2,373,817
GENERAL REVENUES:
Investment Earnings - 202,632 - - 202,632
Total Business Type Activities 2,576,449
NET BUSINESS-TYPE ASSETS - BEGINNING BALANCE 43,610,735
NET BUSINESS-TYPE ASSETS - ENDING BALANCE 46,187,184$
TOTAL PRIMARY GOVERNMENT 31,551,025$ 29,201,769$ 2,815,455$ 6,449,434$ 6,915,633$
TOTAL PRIMARY GOVERNMENT NET ASSETS - BEGINNING BALANCE 105,571,063
TOTAL PRIMARY GOVERNMENT NET ASSETS - ENDING BALANCE 112,486,696$
COMPONENT UNIT (REXBURG URBAN RENEWAL AGENCY):
General and Administrative 50,707$ -$ -$ -$ (50,707)$
Construction 312,456 - - - (312,456)
Bond Interest 173,965 - - - (173,965)
Total Component Units 537,128$ -$ -$ -$ (537,128)$
GENERAL REVENUES:
Property taxes levied for general purposes 2,305,872
Overhead Charges for Services 32,083
Unrealized Gain (Loss)(52,829)
Investment Earnings 110,950
Total General Revenue 2,396,076
TOTAL COMPONENT UNIT ACTIVITIES 1,858,948
TOTAL COMPONENT UNIT - BEGINNING BALANCE 1,523,542
TOTAL COMPONENT UNIT - ENDING BALANCE 3,382,490$
CITY OF REXBURG, IDAHO
STATEMENT OF ACTIVITIES
GOVERNMENT WIDE
September 30, 2018
Program Revenues
The Accompanying Notes are an Integral Part of the Financial Statements
24
Emergency Other Total
General Street Service Governmental Governmental
ASSETS Fund Fund Fund Funds Funds
Cash and Short Term Investments 3,601,641$ 2,823,027$ -$ 7,164,499$ 13,589,167$
Receivables 686,317 1,317,314 448,474 2,416,276 4,868,381
Inventory 24,280 - - - 24,280
Due from Other Funds 1,737,882 - - - 1,737,882
TOTAL ASSETS 6,050,120$ 4,140,341$ 448,474$ 9,580,775$ 20,219,710$
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts Payable 1,059,948$ 1,149,687$ 93,748$ 210,636$ 2,514,019$
Due to Other Funds - - 354,725 1,383,157 1,737,882
Other 10,000 8,900 - 4,460 23,360
TOTAL LIABILITIES 1,069,948 1,158,587 448,473 1,598,253 4,275,261
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 59,444 - - 500,025 559,469
FUND BALANCES:
Nonspendable 24,279 - - - 24,279
Restricted - 2,981,754 - 3,545,341 6,527,095
Committed 3,070,000 - - 3,937,156 7,007,156
Assigned - - - - -
Unassigned 1,826,449 - - - 1,826,449
TOTAL FUND BALANCES 4,920,728 2,981,754 - 7,482,497 15,384,979
TOTAL LIABILITIES AND FUND BALANCES 6,050,120$ 4,140,341$ 448,473$ 9,580,775$ 20,219,709$
CITY OF REXBURG, IDAHO
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2018
The Accompanying Notes are an Integral Part of the Financial Statements
25
Amounts reported for governmental activities in the statement of net assets are different
because:
TOTAL FUND BALANCE - GOVERNMENTAL FUNDS 15,384,979$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Cost of Assets 89,694,147$
Accumulated Depreciation (35,700,340)
Net Cost of Assets 53,993,807
Certain receivables are not financial resources and are reported
as deferred revenues
Property tax deferred revenue 84,184
Special Assessment deferred revenue 470,861
Deferred recreation revenues 4,349
Deferred capital project grants and contributions 64
Deferred rent income -
Long-term liabilities, including bonds payable, are not due and
payable in the current period and therefore are not reported
in the funds
Deferred Pension Outflows 846,110
Deferred Pension Inflows (616,939)
Net Pension Liability (3,134,125)
Long-term debt (299,800)
Accrued compensated absences (432,191)
Accrued interest payable (1,787)
TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES 66,299,512$
September 30, 2018
CITY OF REXBURG, IDAHO
RECONCILIATION OF THE
BALANCE SHEET OF GOVERNMENTAL FUNDS
to the
TO THE STATEMENT OF NET POSITION
The Accompanying Notes are an Integral Part of the Financial Statements
26
Emergency Other Total
General Street Service Governmental Governmental
Fund Fund Fund Funds Funds
REVENUES:
Taxes 6,421,502$ 2,192,079$ -$ 812,602$ 9,426,183$
Grants and Contributions 665,128 2,084,207 1,741,165 1,042,477 5,532,977
Fees and Charges 4,435,721 1,460,779 81,726 5,154,290 11,132,516
Investment Earnings 22,287 ‐ ‐ 120,288 142,575
Miscellaneous 106,014 ‐ 22,399 14,246 142,659
TOTAL REVENUES 11,650,652 5,737,065 1,845,290 7,143,903 26,376,910
EXPENDITURES:
General and Administrative 3,797,980 ‐ ‐ 1,813,140 5,611,120
Public Safety 4,254,766 ‐ 3,402,323 902,015 8,559,104
Parks and Recreation 747,411 ‐ ‐ 1,589,672 2,337,083
Streets - 1,648,071 ‐ 74,489 1,722,560
Interest on Bonds and Other Debt - ‐ ‐ 24,902 24,902
Principal on Bonds and Other Debt - ‐ ‐ 150,000 150,000
Capital Improvements 324,383 3,219,235 22,434 2,440,064 6,006,116
TOTAL EXPENDITURES 9,124,540 4,867,306 3,424,757 6,994,282 24,410,885
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 2,526,112 869,759 (1,579,467) 149,621 1,966,025
OTHER FINANCING SOURCES (USES):
Proceeds From Borrowings - - - 229,800 229,800
Operating Transfers In 3,200 (528,253) 1,579,467 2,341,904 3,396,318
Operating Transfers Out (2,097,817) (573,994) ‐ (724,507) (3,396,318)
TOTAL OTHER FINANCING
SOURCES (USES)(2,094,617) (1,102,247) 1,579,467 1,847,197 229,800
EXCESS OF REVENUES
AND OTHER SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER USES 431,495 (232,488) - 1,996,818 2,195,825
FUND BALANCE AT
BEGINNING OF YEAR 4,489,233 3,214,242 - 5,485,679 13,189,154
FUND BALANCE AT
END OF YEAR 4,920,728$ 2,981,754$ -$ 7,482,497$ 15,384,979$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
September 30, 2018
The Accompanying Notes are an Integral Part of the Financial Statements
27
Amounts reported for governmental activities in the statement of activites are different because:
NET CHANGES IN FUND BALANCES - TOTAL GOVERNMENTAL FUNDS 2,195,825$
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, assets with an initial, individual cost of
more than $5,000 are capitalized and the cost is allocated over their
estimated useful lives and reported as depreciation expense. This is
the amount by which capital outlays are reduced by depreciation in the
current period:
Capital expenditures capitalized as fixed assets 6,006,116
Depreciation expense (3,674,616)
Basis in Assets disposed of (23,604)
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds:
Special assessments levied 196,322
Changes in Deferred Revenue not in Statement of Net Assets:
Special assessment deferred revenue (109,962)
Property tax deferrals (296)
Recreation and Cultural Arts revenue deferral (759)
Airport lot rent deferral 4,329
Compensated absences accrual adjustment (45,317)
Net Pension (Expense) Revenue (132,835)
Governmental funds report principal repayment on debt as an
expenditure. However, in the statement of activities debt
payment are not an expense:
Proceeds from borrowing (229,800)
Principal payments on long-term liabilities 150,000
Changes in accrued interest 3,781
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 4,339,184$
September 30, 2018
CITY OF REXBURG, IDAHO
RECONCILIATION OF THE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
to the
STATEMENT OF ACTIVITIES
The Accompanying Notes are an Integral Part of the Financial Statements
28
Water Wastewater Sanitation Total
ASSETS
Current Assets:
Cash and Short-term Investments 7,535,863$ 4,206,084$ 916,253$ 12,658,200$
Receivables 1,283,645 608,482 243,143 2,135,270
Total Current Assets 8,819,508 4,814,566 1,159,396 14,793,470
Noncurrent Assets:
Capital Assets:
Capital Assets 22,637,048 40,438,043 2,943,586 66,018,677
Accumulated Depreciation (6,642,061) (14,123,270) (1,765,978) (22,531,309)
Total Noncurrent Assets 15,994,987 26,314,773 1,177,608 43,487,368
TOTAL ASSETS 24,814,495 31,129,339 2,337,004 58,280,838
Deferred Outflows of Resources 40,676 53,174 24,321 118,171
TOTAL ASSETS AND DEFERRED OUTFLOWS 24,855,171 31,182,513 2,361,325 58,399,009
LIABILITIES:
Current Liabilities:
Accounts Payable 626,306 478,256 71,399 1,175,961
Accrued Compensated Absences 20,783 31,303 8,790 60,876
Accrued Interest Payable 109,328 7,659 - 116,987
Due to Other Funds - - - -
Other 110,702 - 769 111,471
Current Portion of Long-term Obligations - 675,000 - 675,000
Total Current Liabilities 867,119 1,192,218 80,958 2,140,295
Noncurrent Liabilities:
Noncurrent Portion of Long-term Obligations 4,792,519 4,560,000 - 9,352,519
Net Pension Liability 177,595 219,373 101,712 498,680
TOTAL LIABILITIES 5,837,233 5,971,591 182,670 11,991,494
DEFERRED INFLOWS OF RESOURCES:
Bond issue premium, net of amortization - 137,269 - 137,269
Deferred Inflows of Resources 29,581 36,540 16,941 83,062
TOTAL LIABILITIES AND DEFERRED INFLOWS
OF RESOURCES 5,866,814 6,145,400 199,611 12,211,825
NET POSITION:
Invested in Capital Assets Net of Related Debt 11,093,139 20,934,843 1,177,610 33,205,592
Restricted for:
Capital Projects 1,923,728 596,097 - 2,519,825
Intergovernmental Agreement
Operations 5,971,490 3,506,173 984,104 10,461,767
TOTAL NET POSITION 18,988,357$ 25,037,113$ 2,161,714$ 46,187,184$
Enterprise Funds
CITY OF REXBURG, IDAHO
PROPRIETARY FUNDS
September 30, 2018
Business-type Activities
STATEMENT OF NET POSITION
The Accompanying Notes are an Integral Part of the Financial Statements
29
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
Water Wastewater Sanitation Totals
OPERATING REVENUES:
Monthly Utility Services 2,672,943$ 4,407,447$ 2,338,164$ 9,418,554$
One Time Fees 80,784 245,071 20,642 346,497
Miscellaneous 26,649 9,512 3,804 39,965
TOTAL OPERATING REVENUES 2,780,376 4,662,030 2,362,610 9,805,016
OPERATING EXPENSES:
Utility Expenses 2,149,617 3,180,363 1,899,558 7,229,538
Depreciation and Amortization 584,195 1,191,448 152,694 1,928,337
TOTAL OPERATING EXPENSES 2,733,812 4,371,811 2,052,252 9,157,875
OPERATING INCOME 46,564 290,219 310,358 647,141
NON-OPERATING REVENUES / EXPENSES:
Sale of Capacity and Contributions 601,528 1,109,296 - 1,710,824
Contributed Capital 147,000 149,000 - 296,000
Sale of Assets 2,500 56,675 - 59,175
Basis in Assets Sold (332) (6,172) - (6,504)
Interest Income 131,802 77,342 22,428 231,572
Unrealized Gain (Loss)(71,750) (30,750) - (102,500)
Interest Expense (70,003) (189,253) - (259,256)
TOTAL NON-OPERATING REVENUES / EXPENSES 740,745 1,166,138 22,428 1,929,311
CHANGE IN NET POSITION 787,309 1,456,357 332,786 2,576,452
TOTAL NET POSITION - BEGINNING BALANCE 18,201,048 23,580,756 1,828,928 43,610,732
TOTAL NET POSITION - ENDING BALANCE 18,988,357$ 25,037,113$ 2,161,714$ 46,187,184$
September 30, 2018
Business-type Activities
Enterprise Funds
The Accompanying Notes are an Integral Part of the Financial Statements
30
CITY OF REXBURG
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Water Wastewater Sanitation Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from Customers 2,797,870$ 4,565,831$ 2,360,599$ 9,724,300$
Payments to Suppliers (760,853) (928,877) (959,354) (2,649,084)
Payments to Employees (677,299) (959,423) (339,574) (1,976,296)
Internal Activity - Payments to Other Funds for Services (776,854) (1,155,737) (612,556) (2,545,147)
Increase (Decrease) in PERSI allocation 29,241 (48,089) 18,848 -
Other Payments (892) (2,367) (1,712) (4,971)
NET CASH PROVIDED BY OPERATING ACTIVITIES 611,213 1,471,338 466,251 2,548,802
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Borrowing 1,023,826 - - 1,023,826
Sale of Capacity and Contributions 611,778 1,109,296 - 1,721,074
Acquisitions of Property, Plant and Equipment (2,212,580) (990,952) (281,841) (3,485,373)
Increase (Decrease) in Accounts Payable on Capital 181,689 131,591 - 313,280
(Increase) Decrease in Accounts Receivable for Capital (856,691) 17,772 - (838,919)
Proceeds from Sale of Assets 2,500 56,675 - 59,175
Interest Income 131,804 77,342 22,423 231,569
Principal Payments on Revenue Bonds - (655,000) - (655,000)
Interest Payments (70,003) (208,863) - (278,866)
Increase (Decrease) in Interest Payable for Capital 70,003 (837) - 69,166
Unrealized Gain (Loss) on Investments (82,000) (30,750) - (112,750)
Contributed Capital 147,000 149,000 - 296,000
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (1,052,674) (344,726) (259,418) (1,656,818)
NET INCREASE (DECREASE) IN CASH AND INVESTMENTS (441,461) 1,126,612 206,833 891,984
CASH AND INVESTMENTS AT BEGINNING OF YEAR 7,977,324 3,079,472 709,420 11,766,216
CASH AND INVESTMENTS AT END OF THE YEAR 7,535,863$ 4,206,084$ 916,253$ 12,658,200$
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating Income (Loss)46,564$ 290,219$ 310,358$ 647,141$
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Depreciation and Amortization 584,195 1,191,448 152,694 1,928,337
Net Pension Expense (Revenue)(24,053) (29,710) (13,769) (67,532)
Changes in Assets and Liabilities:
(Increase) Decrease in accounts receivable 7,648 (96,108) (2,195) (90,655)
Increase (Decrease) in PERSI allocation 29,241 (48,089) 18,848 -
Increase (Decrease) in accounts payable (45,019) 162,499 (1,067) 116,413
Increase (Decrease) in accrued compensated absences 2,682 1,079 1,146 4,907
Increase (Decrease) in deposits payable 9,955 - 236 10,191
NET CASH PROVIDED BY OPERATING ACTIVITIES 611,213$ 1,471,338$ 466,251$ 2,548,802$
Business-type Activities -
Enterprise Funds
September 30, 2018
31
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2018
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City of Rexburg, Idaho (the City) was incorporated in 1883 under the provisions
of the State of Idaho. The City operates under a Council-Mayor form of government
and provides the following services as authorized by its charter: public safety (police
and fire), streets, sanitation, culture-recreation, public improvements, planning and
zoning, general administrative, utilities, and airport operations. The accompanying
financial statements present the government and its component units, entities for
which the government is considered to be financially accountable.
The financial statements of the City of Rexburg, Idaho have been prepared in
conformity with accounting principles generally accepted in the United States of
America (GAAP) as applied to local government units. The Governmental
Accounting Standards Board (GASB) is the accepted standard-setting body for
establishing governmental accounting and financial reporting principles. The more
significant accounting policies of the City are described below.
Basic Financial Statements
Basic financial statements are presented at both the government-wide and fund
financial level. Both levels of statements categorize primary activities as either
governmental or business-type. Governmental activities, which are normally
supported by taxes and intergovernmental revenues, are reported separately from
business-type activities, which rely to a significant extent on fees and charges for
support.
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the
statement of changes in net position) report information on all of the non-fiduciary
activities of the Primary Government and its component units. For the most part, the
effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues,
are reported separately from business-type activities, which rely to a significant
extent on fees and charges for support.
The Statement of Activities demonstrates the degree to which the direct expenses of
a given function or segment are offset by program revenues. Direct expenses are
those that are clearly identifiable with a specific function. Program revenues include
1) charges to customers or applicants who purchase, use, or directly benefit from
goods, services, or privileges provided by a given function or segment and 2) grants
and contributions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not
properly included among program revenues are reported instead as general
revenues.
Separate financial statements are provided for governmental funds and fiduciary
funds, even though the latter are excluded from the government-wide financial
32
statements. Major individual governmental funds are reported as separate columns
in the fund financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic
resources measurement focus and the accrual basis of accounting, as are the
proprietary fund financial statements. Revenues are recorded when earned and
expenses are recorded when a liability is incurred, regardless of the timing of related
cash flows. Property taxes are recognized as revenues in the year for which they
are levied. Grants and similar items are recognized as revenue as soon as all
eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial
resources measurement focus and the modified accrual basis of accounting.
Revenues are recognized as soon as they are both measurable and available.
Revenues are considered to be available when they are collectible within the current
period or soon enough thereafter to pay liabilities of the current period. For this
purpose, the City considers revenues to be available if they are collected within 60
days of the end of the current fiscal period. Expenditures generally are recorded
when a liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences, early
retirement, arbitrage rebates, and post-employment healthcare benefits, are
recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current
fiscal period are all considered to be susceptible to accrual and have been
recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be
accrued as revenue of the current period. All other revenue items are considered to
be measurable and available only when the City receives cash.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It is used for all financial
resources of the general government, except those required to be accounted for
in another fund.
The Street Fund accounts for the resources accumulated and payments made
for street and bridge maintenance, street lighting, traffic engineering, snow
removal, street sweeping and storm sewer maintenance. Street Fund resources
are restricted by law to be used only to benefit city streets.
The Emergency Services Fund accounts for the operations of the fire and
ambulance service in and surrounding the City.
The City reports the following major enterprise funds:
The Utility Funds are the funds that account for the activities provided to the
residents of the City for its utilities. These utilities include water, wastewater and
sanitation. In 2015 these operating services were split to their own respective
funds and in 2016 we began to report them in their respective funds on the
financial statements.
33
Component Unit
Component units are organizations which are legally separated from the City, which
are financially accountable to the City, or their relationship with the City are such that
exclusion would cause the City’s financial statements to be misleading or
incomplete. Discretely presented component units are reported in a separate
column to emphasize that they are legally separate from the primary government
and are governed by separate boards. The City has one discretely presented
component unit. A brief description of the discretely presented component unit
follows:
Rexburg Urban Renewal Agency – was organized to make improvements to
infrastructure in specific areas of the City. It derives its revenues from the
incremental tax increases that all taxing districts forfeit from increase in value of
the land and buildings in the new construction areas.
Private-sector standards of accounting and financial reporting issued prior to
December 1, 1989, generally are followed in both government-wide and proprietary
fund financial statements to the extent that those standards do not conflict with or
contradict guidance of the Governmental Accounting Standards Board.
Governments also have the option of following subsequent private-sector guidance
for their business-type activities, subject to this same limitation. The City has
elected not to follow subsequent private-sector guidance.
When both restricted and unrestricted resources are available for use, it is the
government’s policy to use restricted resources first, then unrestricted resources as
they are needed. The City considers restricted amounts to have been spent first
when an expenditure is incurred for purposes for which multiple classifications may
be included in a fund balance. For example, restricted amounts are used first,
followed by committed, assigned, and unassigned amounts in that order, for
purposes of reporting fund balance.
As a general rule the effect of interfund activity has been eliminated from the
government-wide financial statements.
Amounts reported as program revenues include 1) charges to customers or
applicants for goods, services, or privileges provided, 2) operating grants and
contributions, and 3) capital grants and contributions, including special assessments.
Internally dedicated resources are reported as general revenues rather than as
program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from non-operating
items. Operating revenues and expenses generally result from providing services
and producing and delivering goods in connection with a proprietary fund’s principal
on- going operations. The principle operating revenues of water, wastewater,
sanitation, and golf course services enterprise funds are charges to customers and
users for sales and services. Operating expenses for enterprise funds include the
cost of sales and services, administrative expenses and depreciation on capital
assets. All revenue and expenses not meeting this definition are reported as non-
operating revenues and expenses.
34
Property, Plant and Equipment
Property, plant and equipment used in governmental fund type operations (those
items which relate to the general activities and services of the City) are accounted
for in the government-wide financial statements. The City defines capital assets as
assets with an initial, individual cost of more than $5,000 (see Resolution 2012-02),
with an estimated useful life in excess of two years. Property, plant and equipment
used in proprietary fund type operations (i.e., the Utility and the Golf Course Funds)
are accounted for within the proprietary funds and on the government-wide financial
statements. Depreciation is provided on property, plant and equipment using the
straight-line method over the estimated useful lives of the related assets:
Server/Software…………………………………………………. 6 years
Office Equipment ................................................................. 10 years
Furniture .............................................................................. 20 years
Vehicles ................................................................................. 7 years
Light Equipment ................................................................... 10 years
Heavy Equipment ................................................................ 20 years
Buildings .............................................................................. 40 years
Water and Wastewater Systems ................................... 20-100 years
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a
separate section for deferred outflows of resources. This separate financial
statement element, deferred outflows of resources, represents a consumption of net
position that applies to a future period(s) and so will not be recognized as an outflow
of resources (expense/expenditure) until then.
The City has only one type of deferred outflows of resources. This amount relates to
the City’s allocable share of the effect of changes during the year on the valuation of
the net pension liability. This amount is reported only in the business-type funds and
in the government-wide financial statements.
In addition to liabilities, the statement of financial position will sometimes report a
separate section for deferred inflows of resources. This separate financial statement
element, deferred inflows of resources, represents an acquisition of net position that
applies to a future period(s) and so will not be recognized as an inflow of resources
(revenue) until that time.
The City has three types of items in this area. One item, which arises only under a
modified accrual basis of accounting, unavailable revenue, is reported only in the
governmental funds balance sheet and represents unavailable revenues from
property taxes and grant revenues received in advance. These amounts are
deferred and recognized as an inflow of resources in the period that the amounts
become available. The government also has a deferred premium on refunding
resulting from the difference in the carrying value of refunded debt and its
reacquisition price. This amount is deferred and amortized over the life of the
35
refunding. The third type of deferred inflows of resources relates to the effect of
changes during the year in the calculation of the net pension liability.
Pensions
For purposes of measuring the net pension liability and pension expense (revenue),
information about the fiduciary net position of the Public Employee Retirement
System of Idaho Base Plan (Base Plan) and the Firefighters’ Retirement Fund Plan
(FRF) and additions to/deductions from Base Plan’s and FRF’s fiduciary net position
have been determined on the same basis as they are reported by the Base Plan and
FRF. 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.
Budgetary Policy
The City prepares one combined budget which includes the operations of all funds.
The combined statement of revenues and expenditures budget and actual--all
budgetary funds presents comparisons of legally adopted budgets with actual data
on a budgetary basis. Under Idaho Code, the City's budget establishes maximum
legal authorization for expenditures during the fiscal year. Expenditures are not to
exceed the budgeted amounts, except as allowed by the Code for certain events.
During the fiscal year ended September 30, 2018 the City amended the budget for
several of the funds.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other
commitments for the expenditures of monies are recorded in order to reserve that
portion of the applicable appropriation, is not employed by the City because it is not
considered necessary to assure effective budgetary control or to facilitate effective
cash planning and control.
Inventory
Inventory is stated at the lower of cost or market. Inventory for all funds consists of
expendable supplies held for consumption and is recorded when consumed
(consumption method).
Cash Equivalents
For the purpose of the statement of cash flows for the proprietary funds, the City
considers all highly liquid debt instruments purchased with a maturity of three
months or less to be cash equivalents. Funds invested with the State Treasurer's
Pool are classified as investments on the combined balance sheet and are
considered to be cash equivalents.
Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect the reported amounts of assets and liabilities and disclosure of contingent
36
assets and liabilities at the date of the financial statements and the reported
amounts of revenues and expenses during the reporting period. Actual results could
differ from those estimates.
Subsequent Events
In preparing these financial statements, the management of the City has evaluated
events and transactions for potential recognition and disclosure through March 4,
2019; the date the financial statements were available to be issued.
2. CASH AND SHORT-TERM INVESTMENTS
The City is authorized under Idaho Code to invest in cash, certificates of deposit,
U.S. Government securities, commercial paper and repurchase agreements. All
investments must be held by or registered in the name of the City.
Cash balances of most of the City’s funds are pooled and invested. Interest earned
from investments purchased with pooled cash is allocated to each of the funds
based on the fund's cash balance. The City maintains two primary checking
accounts and other miscellaneous accounts with local banks where a minimum
balance is maintained. All excess funds are then invested with the State Treasurer’s
Local Government Investment Pool, the State’s Diversified Fund or accounts
managed through contracts with private investment advisors (Managed Accounts).
These accounts invest in time certificates of deposit, local government tax
anticipation notes, federal loans, U.S. treasury notes and other U.S. governmental
securities. Information regarding insurance or collateralization of amounts invested
in the pooled accounts is not available.
The City has adopted the provisions of GASB Statement No. 40, Deposit and
Investment Risk Disclosures. This statement establishes and modifies disclosure
requirements related to investment and deposit risk; accordingly, the note
disclosures on cash and investments are in conformity with the provisions of GASB
Statement No. 40.
Deposits – At September 30, 2018, the carrying amount of the City’s bank
deposits including Certificates of Deposits (CDs) was $4,556,063, of which
$2,196,165 were insured with the FDIC and $1,505,120 was collateralized
through Zions Bank.
Custodial Credit Risk, Deposits – Custodial credit risk is the risk that, in the
event of a bank failure, the government’s deposits may not be returned. As of
September 30, 2018, $576,035 of the City’s total deposits and $278,743 of
the Fire District Deposits were not covered by federal depository insurance,
and thus was exposed to custodial credit risk.
37
Investments – As of September 30, 2018, the City had the following
investments:
WAM S&P
Investment Type Years
Rating Fair Value Less Than 1 1-5 6-10
State Diversified Bond Fund 3.650 N/A 7,526,746$ 1,156,995$ 4,770,301$ 1,599,450$
State Investment Pool 0.258 N/A 6,891,681 6,501,164 390,517 -
Moreton Asset Management 1.838 N/A 3,761,275 1,967,674 1,793,601 -
Zions Bank Capital Advisors 1.795 N/A 3,202,267 1,533,118 1,669,149 -
Certificates of Deposit N/A N/A 614,900 614,900 - -
CDARS/CD Program N/A N/A 753,060 753,060 - -
Collateralized Municipal MM Fund N/A N/A 1,505,120 1,505,120 - -
Total 24,255,049$ 14,032,031$ 8,623,568$ 1,599,450$
Investment Maturity (in Years)
Custodial Credit Risk, Investments – For an investment, custodial credit risk is
the risk that, in the event of the failure of the counterparty, the City will not be
able to recover the value of the investments. The State diversifies these
funds to reduce this risk.
Interest Rate Risk – As a means of limiting its exposure to fair value losses
arising from changes in interest rates, the City structures its portfolio so that
securities mature to meet cash requirements for ongoing operations. The
Weighted Average Maturity (WAM) is stated above.
The CDARS program is through a local bank and invests the funds in less
than $250,000 increments in different banks to keep below the FDIC
insurance amounts for coverage. The Collateralized Municipal MM Fund is
also through a local bank that invests in money market accounts that the bank
collateralizes with underlying investments.
The following is a reconciliation of the City’s deposit and investment balance
as of September 30, 2018:
Investments 24,255,049
Petty Cash 2,250
Bank Deposits 1,682,983
Land 307,085
Total 26,247,367
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Fair Value Measurements
The City has implemented GASB No. 72, Fair Value Measurement and
Application. This guidance requires government entities to measure investments
and certain other items at fair value. The objective is to enhance comparability of
financial statements among governments by requiring measurement of certain
assets and liabilities at fair value using a consistent and more detailed definition
of fair value and accepted valuation techniques. This guidance clarifies that fair
value is an exit price, representing the amount that would be received to sell an
asset or paid to transfer a liability in an orderly transaction between market
participants. Under this guidance, fair value measurements are not adjusted for
transaction costs. This guidance establishes a fair value hierarchy that prioritizes
the inputs to valuation techniques used to measure fair value. The hierarchy
gives the highest priority to unadjusted quoted prices in active markets for
identical assets or liabilities (Level 1 measurements) and the lowest priority to
unobservable inputs (Level 3 measurements).
GASB No. 72 specifies a hierarchy of valuation techniques based upon whether
the inputs to those valuation techniques reflect assumptions other market
participants would use based upon market data obtained from independent
sources (observable inputs). The following summarizes the fair value hierarchy:
Level 1 Inputs – Unadjusted quoted market prices for identical assets and
liabilities in an active market.
Level 2 Inputs – Inputs other than the quoted process in active markets that are
observable either directly or indirectly.
Level 3 Inputs – Inputs based on prices or valuation techniques that are both
unobservable and significant to the overall fair value measurements.
GASB No. 72 requires the use of observable market data, when available, in
making fair value measurements. When inputs used to measure fair value fall
within different levels of the hierarchy, the level within which the fair value
measurement is categorized is based on the lowest level input that is significant
to the fair value measurements. Valuation techniques used need to maximize
the use of observable inputs.
All assets have been valued using a market approach. There were no changes
in the valuation techniques during the year. There are no assets or liabilities
measured at fair value on a nonrecurring basis.
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Level 2 assets fair value was determined by the State of Idaho who manages the
state diversified bond fund and state investment pool. Those funds fair values
were based on readily available market values of the investments underlying
those investments. Level 3 assets fair value was determined by original recent
purchase price and appraisal of the land.
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3.CAPITAL ASSETS
Capital assets activity for the year ended September 30, 2018, was as follows:
30-Sep 30-Sep
PRIMARY GOVERNMENT:2017 Increases Decreases 2018
GOVERNMENTAL ACTIVITIES:
Capital assets, not being depreciated:
Land 2,775,915$ -$ -$ 2,775,915$
Total capital assets, not being
depreciated 2,775,915 - - 2,775,915
Capital assets, being depreciated
Office 2,597,225 130,636 - 2,727,861
Legal 5,437 - (5,437) -
Archer station 1,703,522 - (39,500) 1,664,022
Police 4,043,320 166,915 (76,802) 4,133,433
Fire 7,891,152 419,937 - 8,311,089
Engineering 354,286 - (101,319) 252,967
GIS 154,643 - - 154,643
Community development 327,661 33,404 (2,378) 358,687
Streets 44,246,603 3,970,908 - 48,217,511
Shop 1,266,192 94,555 - 1,360,747
Golf Courses 1,936,111 277,289 - 2,213,400
Parks 5,368,432 609,960 (8,539) 5,969,853
Merry-go-round 143,091 - - 143,091
Ball diamond 40,893 - - 40,893
Airport 3,095,187 90,036 - 3,185,223
Fiber 72,617 - - 72,617
Recreation 6,099,524 54,013 (3,000) 6,150,537
Romance Theatre 511,197 44,408 - 555,605
Legacy of Flight Museum 655,117 95,000 - 750,117
Tabernacle 636,881 19,055 - 655,936
Total capital assets, being
depreciated 81,149,091 6,006,116 (236,975) 86,918,232
Less accumulated depreciation (32,250,596) (3,674,615) 224,871 (35,700,340)
Total capital assets, being
depreciated, net 48,898,495 2,331,501 (12,104) 51,217,892
GOVERNMENTAL ACTIVITIES CAPITAL
ASSETS, NET 51,674,410$ 2,331,501$ (12,104)$ 53,993,807$
Depreciation expense was charged to the government activities as follows:
General and Administrative 371,974$
Public Safety 646,278
Parks and Recreation 620,229
Street 2,036,134
Total Depreciation 3,674,615$
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30-Sep 30-Sep
PRIMARY GOVERNMENT: 2017 Increases Decreases 2018
BUSINESS-TYPE ACTIVITIES:
Capital assets, not being depreciated:
Land 117,880$ -$ -$ 117,880$
Total capital assets, not being
depreciated 117,880 - - 117,880
Capital assets, being depreciated:
Sanitation 2,661,744 281,842 - 2,943,586
Water 20,427,793 2,212,580 (3,325) 22,637,048
Wastewater 39,431,680 990,952 (102,469) 40,320,163
Total capital assets, being
depreciated 62,521,217 3,485,374 (105,794) 65,900,797
Less accumulated depreciation:
Sanitation (1,613,283) (152,695) - (1,765,978)
Water (6,060,857) (584,196) 2,993 (6,642,060)
Wastewater (13,028,119) (1,191,448) 96,296 (14,123,271)
Total accumulated depreciation (20,702,259) (1,928,339) 99,289 (22,531,309)
Total capital assets, being
depreciated, net 41,818,958 1,557,035 (6,505) 43,369,488
BUSINESS-TYPE ACTIVITIES CAPITAL
ASSETS, NET 41,936,838$ 1,557,035$ (6,505)$ 43,487,368
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4. REVOLVING LOANS RECEIVABLE
The City received a grant from the United States Department of Housing and Urban
Development, the proceeds of which have been designated to be used as a
revolving loan fund for small businesses within the community. Repayments on the
initial loan have been used to finance other projects at the discretion of the City.
The East Central Idaho Development Company (ECIDC) is currently administering
these funds for the City. The balances of outstanding loans at September 30, 2018
are as follows:
Recipient Repayment Terms Amount
Smith Family Properties Receivable in monthly installments
including interest through 2019.5,151$
Robertson Taylor, LLC Receivable in monthly installments
including interest through 2028.84,369
Patriot Company Receivable in monthly installments
including interest through 2034.209,732
Appible, LLC Receivable in monthly installments
including interest through 2017.36,781
Clear Water Hackle Receivable in monthly installments
including interest through 2019.12,300
Grand Peaks Medical Receivable in monthly installments
including interest through 2019.24,574
Coates Landscape Receivable in monthly installments
including interest through 2037.366,308
The Development Company Terms of repayment not finalized.
This was matching funds to create the
the USDA Rural Development IRP
Revolving Loan Fund 125,000
864,215$
Between cash in the Development Company and cash/investments the City is
holding, there is a total of $487,271, which is available for future revolving loan
projects.
5. PROPERTY TAXES
Property taxes of the City are based on the assessments against property owners as
of the first Monday in January of the calendar year in which the fiscal year
commences. Tax levies on such assessed values are certified to the County prior to
the commencement of the fiscal year.
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Taxes are collected by Madison County and remitted to the City primarily in January
and July of the fiscal year. Accordingly, the tax revenues for the fiscal year ended
September 30, 2018, are based on the assessed values and tax revenues
established in 2017.
The City defers recognition of property taxes assessed but not collected by fiscal
year-end. Such amounts will be recognized as revenues in the fiscal year they
become available.
6. ACCRUED COMPENSATED ABSENCES/ HRA-VEBA
The City has elected to show its unused sick leave benefits as compensated
absences. In 1990, the City established individual sick leave banks whereby an
employee’s unused days over the 60 day maximum at the end of the calendar year
were deposited in the sick leave bank, after the first 2 days were converted to
vacation. From 2001 and thereafter, the employees no longer accumulate sick days
at the end of the year in the sick bank, which will eventually phase out as those with
remaining balances become eligible for full retirement.
The current policy states that all additional, unused, accumulated sick leave above
480 hours for each employee (above 672 hours for ESD27 department employees),
after the first 2 days were converted to vacation, will be converted to cash at a rate
of 35% of the employee’s current hourly rate and deposited in the City’s designated
Health Reimbursement Arrangement (HRA)-Voluntary Employee Benefit Association
(VEBA) in the employee’s name in the custody of a third party administrator so there
is no outstanding unfunded liability. Upon retirement, the City will add to the
employee’s HRA-VERBA account 35% of their unused Sick Leave of the first 480
hours (672 hours for ESD27 department employees) plus 35% of any Sick Leave
Bank balance.
The balance in the employee’s HRA-VEBA account is subject to a 20 year eligibility
proration. The percentage of their account that is made available to them at qualified
retirement shall be calculated by adding five percent (5%) for each full year of
employment of the individual employee up to a maximum of one hundred percent or
twenty years (100% = 20 years times 5% each). Employees will be eligible for this
benefit after 5 years of continuous City employment and upon eligible retirement as
described below.
To promote longevity, this benefit is available only to employees who obtain one of
the following requirements:
1) They receive full monthly retirement benefits as defined and controlled by the
State of Idaho Retirement System (PERSI) meeting the Rule of 80 or 90 as
applicable, or a combination thereof depending on applicability and as determined
by PERSI.
2) They meet the age requirements of a PERSI Service Retirement.
3) The employee is terminated without cause.
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The Sick Leave Bank is not a savings account, nor is it maintained with any specific
funding. Therefore, no interest is earned, nor may any be claimed or drawn upon it.
If the employee does not obtain one of the three requirements identified above, the
unearned balance of their accounts will be remitted back to the City.
7. HEALTH REIMBURSEMENT ARRANGEMENT (HRA)
The City will contribute a designated amount per deductible, into an HRA account
administered by a third party provider of the City for each eligible employee annually
in order to offset the employee’s share of costs related to a high deductible health
insurance plan. The HRA designated contribution amount is available each year if
the employee and their spouse (if applicable) have completed a wellness exam form
in the prior calendar year. This amount is available to the employees at the start of
each calendar year and can be carried forward for reimbursement in future years to
offset qualified medical expenses. HRA balances may be used during employment
or after termination of employment to pay, or be reimbursed for, eligible medical bills.
The City contributes the amount of this liability every year to an account in the
employee’s name in the custody of a third party administrator so that there is no
outstanding unfunded liability.
8. LOCAL IMPROVEMENT ASSESSMENTS
Assessments are made against property owners within the City for each owner's
pro-rata share of the costs of Local Improvement District construction. Such
assessments represent a lien against the related property and are generally payable
in ten equal payments of principal and interest.
Special assessments are recognized as revenue only to the extent that individual
installments are currently due. The balance of such assessments is shown as
deferred inflow. The collection of revenues for special assessments and the
payment of special assessment bonds are accounted for in the LID Debt Service
Fund.
9. LOCAL IMPROVEMENT DISTRICT WARRANTS PAYABLE
Each year, as needed the City authorizes warrants to finance the improvements of
certain streets along with constructing or reconstructing sidewalks, curbs, gutters,
drainage facilities and other work incidental to improvements along streets and
issues warrants to finance the construction. The balance of warrants outstanding at
September 30, 2018, was as follows:
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Description Interest Rate Fiscal Years Balance
LID No. 38 Warrant 2008
(original amount - $75,000)5.5% 2019 to 2021 15,000$
LID No. 40 Warrant 2012
(original amount - $275,000)4% to 5% 2021 to 2022 55,000
70,000$
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10.WASTEWATER REVENUE BONDS PAYABLE
Wastewater Revenue Bonds outstanding at September 30, 2018, were as follows:
The bond ordinance for the revenue bonds provides for the establishment of certain
accounts and reserves and further provides that all revenues of the wastewater
system are to be used initially for payment of operation and maintenance costs of
the system, principal and interest on the bonds, and establishment of certain defined
debt repayment reserves. The bonds sold at a premium of $294,149. The costs
and the premium are being amortized over the life of the bond.
11. WATER DEQ LOAN PAYABLE
Water DEQ Loan outstanding as of September 30, 2018:
Description Interest Rate Fiscal Years Balance
Water DEQ Loan Payable 1.75% 2019 to 2045 4,792,519$
This loan was obtained through the Idaho State Department of Environmental
Quality (DEQ) and is funded 77.5281% by the Federal Environmental Protection
Agency (EPA) and 22.4719% by DEQ. The total amount the City is able to draw is
$11,100,000, of which approximately 20% will be forgiven as a grant, leaving a total
loan payable, if fully utilized, of $8,888,750. The accrued interest is added to the
loan upon each draw and the final amortization schedule of payments will be
calculated when the full capacity of the loan is drawn.
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12. OBLIGATIONS UNDER CAPITAL LEASES
The City Golf Construction Fund has a lease outstanding as of September 30, 2018:
The following is a schedule of fixed assets and outstanding liabiliti
relating to capital lease agreements:
Capital
Fixed Leases
Assets Payable
Equipment 229,800$ 229,800$
229,800$ 229,800$
The following is a schedule by year of future lease payments
with the present valuye of the net minimum lease payments as
of September 30, 2018.
Year Ending Governmental
September 30 2018 Type Funds
229,800$
Total Minimum Lease Payments 250,482
Less Amount Representing Interest (20,682)
Present Value of Minimum Lease Payments 229,800
Current Portion of Present Value (45,960)
Long-Term Portion of Present Value 183,840$
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13. CHANGES IN LONG-TERM OBLIGATIONS
A summary of long-term transactions of the City for the year ended September 30,
2018, is as follows:
Long-Term Long-Term
Obligations Obligations
September 30, Obligations Obligations September 30, Due Within
2017 Incurred Paid 2018 One Year
Governmental activities:
Local improvement district
warrants payable (Note 9) 220,000$ -$ (150,000)$ 70,000$ 32,500$
Obligations under capital
Lease (Note 12) - 229,800 - 229,800 45,960
Accrued compensated
absences (Note 6) 386,874 45,317 - 432,191 432,191
PERSI Net Pension Liability
(See Notes) 3,051,678 82,447 - 3,134,125 -
Governmental Activity
Long-Term Liabilities 3,658,552$ 357,564$ (150,000)$ 3,866,116$ 510,651$
Business-type activities:
Accrued compensated
absences (Note 6) 55,967$ 4,909$ -$ 60,876$ 60,876$
PERSI Net Pension Liability 570,273 - (71,593) 498,680 -
(See Notes)
Water DEQ Loan (Note 11) 3,768,693 1,023,826 - 4,792,519 -
Wastewater revenue bonds
payable (Note 10) 5,890,000 - (655,000) 5,235,000 675,000
Business-type Activity
Long-Term Liabilities 10,284,933$ 1,028,735$ (726,593)$ 10,587,075$ 735,876$
Total Governmental and
Business-type Activiites
Long-Term Liabilities 13,943,485$ 1,386,299$ (876,593)$ 14,453,191$ 1,246,527$
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14. BONDED DEBT REPAYMENT REQUIREMENTS
The annual requirements to amortize all bonded debt outstanding as of September
30, 2018, including interest, are as follows:
Local Water Wastewater
Year Ending Improvement DEQ Revenue
September 30, Warrants Loan Bonds Total
2019 5,825$ 136,444$ 865,050$ 870,875$
2020 5,550 451,845 864,800 870,350
2021 35,525 451,845 867,213 902,738
2022 28,875 451,845 867,013 895,888
2023 - 451,845 864,075 864,075
2024-2028 - 2,259,224 1,728,400 1,728,400
2029-2033 - 2,259,224 - -
2034-2038 - 2,259,224 - -
2039-2043 - 2,259,224 - -
2044-2045 - 903,690 - -
Total Commitment 75,775$ 11,884,409$ 6,056,551$ 6,132,326$
Interest Portion 5,775$ 2,995,659$ 821,551$ 3,822,985$
The local improvement warrant interest expenditures are recorded in the LID Debt
Service Funds. The Water DEQ Loan is what is expected after the loan closes.
15. RETIREMENT PLANS
Public Employee Retirement System of Idaho
It is important to note that the City of Rexburg is up to date on all of their
PERSI contribution payments and that we consider the PERSI plan to be well
funded and performing very well as compared to other state retirement plans.
As of June 30 2018, the PERSI base plan fiduciary net position as a percentage
of total pension liability was 91.69%, up 1.01% from the prior year at June 30,
2017. As of June 30 2018, the PERSI FRF plan fiduciary net position as a
percentage of total pension liability was 140.15%, up 10.5% from the prior year
at June 30, 2017.
Plan Description
The City contributes to the Base Plan and the Fireman’s Retirement Fund (FRF),
which are cost-sharing multiple-employer defined benefit pension plans 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
50
participating political subdivisions. The cost to administer the plan is financed
through the contributions and investment earnings of the plans. 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 and FRF 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 and FRF are calculated using a benefit
formula adopted by the Idaho Legislature. The FRF cost of living increase is based
on the increase in the statewide average firefighter’s wage. 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.
The FRF provides retirement, disability, death and survivor benefits of eligible
members or beneficiaries. Benefits are based on members’ years of service as well
as the final average salary. A firefighter must have 5 years of service to be eligible
for a lifetime retirement allowance at age 60. Members are eligible for retirement
benefits upon attainment of the ages specified for their employment classification.
The annual service retirement allowance is based on Idaho Code Title 72 Chapter
14. The benefit payments for the FRF are calculated using a benefit formula adopted
by the Idaho Legislature. The FRF cost of living increase is based on the increase in
the statewide average firefighter’s wage.
Member and Employer Contributions
Member and employer contributions paid to the Base Plan and FRF 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.
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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 covered under the Base Plan are set by statute
at 60% of the employer rate for general employees and 72% for police and
firefighters. As of June 30, 2018, the employee contribution rate was 6.79% for
general employees and 8.36% for police and firefighters. The employer contribution
rate as a percent of covered payroll is set by the Retirement Board and was 11.32%
for general employees and 11.66% for police and firefighters of covered
compensation. The City’s contributions required and paid to the Base Plan were
$882,266 for the year ended September 30, 2018.
As of January 1, 2016, the total FRF employer rate was reduced to 16.66% which
includes the lower employer excess class D rate of 5% plus the PERSI class 2
firefighters rate of 11.66%. The City’s contributions to FRF were $44,521 for the
year ended September 30, 2018.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of
Resources and Deferred Inflows of Resources Related to Pensions
At September 30, 2018, the City reported a liability for its proportionate share of the
net pension liability of the PERSI Base Plan and an asset for its proportionate share
of the net pension asset of FRF. The net pension asset of FRF and net pension
liability of the Base Plan were measured as of July 1, 2018, and the total State of
Idaho pension liability for the Plans used to calculate the net pension asset/liability
were determined by an actuarial valuation as of that date.
The City’s proportion of the net pension liability, expense, and deferrals is split into
three parts:
1) Base Plan including non-FRF firemen .2651606%
2) Base Plan including FRF firemen .0085741%
3) FRF Excess Costs Plan..3577169%
The allocation of net pension liability, expense, and deferrals was based on the
City’s share of contributions to each relative to the total contributions of all Plan
employers as of July 1, 2018.
For the year ended September 30, 2018, the City recognized pension expense
(revenue) of:
Base Plan: $ 145,139
Base FRF Plan: $ 20,864
FRF Excess Plan: $ (100,700)
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At September 30, 2018, the City reported deferred outflows of resources and
deferred inflows of resources related to the Base Plan pension plan from the
following sources:
$245,322 reported as deferred outflows of resources related to Base Plan pensions
resulting from Employer contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ending September
30, 2018.
The average of the expected remaining service lives of all employees that are
provided with pensions through the System (active and inactive employees)
determined for the period ended June 30, 2018, is 4.9 years and for the period
ending June 30, 2017, is 4.9 years.
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At September 30, 2018, the City reported deferred outflows of resources and
deferred inflows of resources related to the Base FRF pension plan from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience 13,883$ 9,552$
Changes in assumptions or other inputs 8,229 -
Net difference between projected and actual
earnings on pension plan investments - 14,051
Changes in the employer's proportion and
differences between the employer's
contributions and the employer's
proportionate contributions - 1,323
Employer contributions subsequent to the
measurement date 9,108 -
Total 31,220$ 24,926$
$9,108 reported as deferred outflows of resources related to Base FRF pensions
resulting from Employer contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ending September
30, 2018.
The average of the expected remaining service lives of all employees that are
provided with pensions through the System (active and inactive employees)
determined for the period ended June 30, 2018, is 4.9 years and for the period
ending June 30, 2017, is 4.9 years.
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At September 30, 2018, the City reported deferred outflows of resources and
deferred inflows of resources related to the FRF Excess pension plan from the
following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience -$ -$
Changes in assumptions or other inputs - -
Net difference between projected and actual
earnings on pension plan investments - 12,310
Changes in the employer's proportion and
differences between the employer's
contributions and the employer's
proportionate contributions - 11,308
Employer contributions subsequent to the
measurement date 3,905 -
Total 3,905$ 23,618$
$3,905 reported as deferred outflows of resources related to FRF pensions resulting
from Employer contributions subsequent to the measurement date will be
recognized as a reduction of the net pension liability in the year ending September
30, 2018.
The average of the expected remaining service lives of all employees that are
provided with pensions through the System (active and inactive employees)
determined for the period ended June 30, 2018, is 1 year and for the period ending
June 30, 2017, is 1 year.
Other amounts reported as deferred outflows of resources and deferred inflows of
resources related to pensions will be recognized in pension expense (revenue) as
follows:
Fiscal Year Base Plan FRF Base Plan FRF Excess
2019 317,928$ 10,280$ 9,037$
2020 37,462$ 1,211$ (1,940)$
2021 (320,492)$ (10,363)$ (15,916)$
2022 (81,004)$ (2,619)$ (3,491)$
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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.
Unfunded actuarial accrued liability for FRF is the difference between the actuarial
present value of the FRF benefits not provided by the Base Plan and the FRF
assets. Currently FRF assets exceed this actuarial present value; therefore there is
not an unfunded liability to amortize at this time. The maximum amortization period
for FRF permitted under Section 59-1394. Idaho Code, is 50 years.
The total pension liability in the July 1, 2017 actuarial valuation was determined
using the following actuarial assumptions, applied to all periods included in the
measurement:
Mortality rates were based on the RP – 2000 combined table for healthy males or
females as appropriate with the following offsets:
Set back 3 years for teachers
No offset for male fire and police
Forward one year for female fire and police
Set back one year for all general employees and all beneficiaries
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For the Base Plan, an experience study was performed for the period July 1, 2007
through June 30, 2013 which reviewed all economic and demographic assumptions
other than mortality. Mortality and all economic assumptions were studied in 2014
for the period from July 1, 2009 through June 30, 2013. The Total Pension Liability
as of June 30, 2018 is based on the results of an actuarial valuation date July 1,
2018.
For the FRF Plan, an experience study was performed for the period July 1, 2011
through June 30, 2015 which reviewed all economic and demographic assumptions
other than mortality. Mortality and all economic assumptions were studied in 2014
for the period from July 1, 2009 through June 30, 2013. The Total Pension Asset as
of June 30, 2017 is based on the results of an actuarial valuation date of July 1,
2018.
The long-term expected rate of return on pension plan investments was determined
using the building block approach and a forward-looking model in which best
estimate ranges of expected future real rates of return (expected returns, net of
pension plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return
by weighing the expected future real rates of return by the target asset allocation
percentage and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return
assumption, the System relies primarily on an approach which builds upon the latest
capital market assumptions. Specifically, the System uses consultants, investment
managers and trustees to develop capital market assumptions in analyzing the
System’s asset allocation. The assumptions and the System’s formal policy for
asset allocation are shown below. The formal asset allocation policy is somewhat
more conservative than the current allocation of System’s assets.
The best-estimate range for the long-term expected rate of return is determined by
adding expected inflation to expected long-term real returns and reflecting expected
volatility and correlation. The capital market assumptions are as of January 1, 2018.
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Discount Rate
The discount rate used to measure the total pension liability was 7.05%. The
projection of cash flows used to determine the discount rate assumed that
contributions from plan members will be made at the current contribution rate.
Based on these assumptions, the pension plans’ net position was projected to be
available to make all projected future benefit payments of current plan members.
Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension
liability. The long-term expected rate of return was determined net of pension plan
investment expense but without reduction for pension plan administrative expense.
59
Sensitivity of the Employer’s proportionate share of the net pension liability to
changes in the discount rate.
The following presents the Employer’s proportionate share of the net pension liability
calculated using the discount rate of 7.10 percent, as well as what the Employer’s
proportionate share of the net pension liability would be if it were calculated using a
discount rate that is 1-percentage-point lower (6.10 percent) or 1-percentage-point
higher (8.10 percent) than the current rate:
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.
60
Payables to the pension plan
At September 30, 2018, the City reported payables to the Base Plan (including FRF
Base Plan) of $38,175, and $1,161 for the FRF Plan for legally required employer
contributions. The City also reported payables to the Base Plan (including FRF
Base Plan) of $24,832, and $523 for the FRF Plan for legally required employee
contributions, which had been withheld from employee wages, but not yet remitted to
PERSI.
401(k) Plan
The City has a single employer defined contribution 401(k) pension plan (the Plan),
established by ordinance and in compliance with Internal Revenue Service
Regulations. The Plan covers substantially all city employees who meet defined age
and service requirements. The Plan is a salary reduction contribution plan with the
employer matching 50% of the first four percent of the employee’s contribution.
Employees are 100% vested immediately on their salary reduction amounts and
become 100% vested after five years of service with the City on the employer’s
contribution portion.
The City’s total 2018 fiscal year payroll for all employees was $9,938,322 of which
$7,179,250 was for covered payroll for employees who were members of the Plan.
Employer and employee contributions to the Plan were 2.00% and 4.50%
respectively, of covered payroll. Total contributions to the Plan for the fiscal year by
the City and the employees were $143,585 and $312,962 respectively. The Plan
had $6,909,662 in net assets at September 30, 2018.
16. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
The City expenditures exceeded the budgeted amounts in the following funds during
the year ended September 30, 2018:
Amount
Fund Budget Actual Exceeded
Street Operations Fund 3,415,700$ 3,652,919$ 237,219$
Recreation Fund 267,300 302,206 34,906
Police Impact Fee Fund 65,000 88,174 23,174
Police Grants Fund 38,100 46,747 8,647
Fire Department Fund 3,305,300 3,424,760 119,460
Shop Building Fund 114,000 115,755 1,755
Sewer Capital Reserve Fund 379,800 814,772 434,972
Airport Operations Fund 30,000 38,535 8,535
LID 47 Construction Fund 450,000 455,839 5,839
LID 40 Debt Service Fund 34,400 89,375 54,975
LID 47 Debt Service Fund 28,000 81,729 53,729
Community Safety Lighting Fund 471,000 506,561 35,561
Rexburg Cultural Arts Fund 73,600 108,185 34,585
Veterans Memorial Fund 5,100 5,449 349
ESD Pipes & Drums Fund 15,300 17,237 1,937
61
The following individual funds had fund deficits on September 30, 2018:
Recreation Fund -- There is a fund deficit of $2,402. The City expects to
eliminate this deficit with following year transfers from the General Fund.
Police Impact Fee Fund --There is a fund deficit of $28,342 that was created
from the purchase of the old street shop to be used as a police storage facility
building and training area. The City expects to eliminate this deficit as police
impact fees are received.
High 5 & Other Grants Fund-- There is a fund deficit of $4,079. The City
expects to eliminate this deficit as grant revenues are received.
Airport Operations Fund-- There is a fund deficit of $4,010. The City expects to
eliminate this deficit as net income increases and transfers are received from
other funds and contributions from Madison County.
Golf Course Construction Fund-- There is a fund deficit of $499,626. The City
expects to reduce/eliminate this deficit from transfers each year from the golf
operations fund, the general fund, and contributions from Madison County.
Although the loan is guaranteed 50% by the City, thru the Revolving Loan Fund,
and 50% by Madison County, the actual loan is shown on the financials as due to
the General Fund.
LID Debt Service Fund-- There is a fund deficit of $222,917. The City expects
to eliminate this deficit as assessments are collected on the LID projects.
East Idaho Business Competition Fund -- There is a fund deficit of $1,916.
The City expects to eliminate this deficit with following year transfers from the
General Fund.
17. COMPONENT UNIT – REXBURG URBAN RENEWAL AGENCY
Reporting Entity
In evaluating how to define the City, for financial reporting purposes,
management has considered all potential component units. The decision to
include a potential component unit in the reporting entity was made by applying
the criteria set forth in Generally Accepted Accounting Principles. The basic, but
not the only, criterion for including a potential component within the reporting
entity is the governing body's ability to exercise oversight responsibility. The
most significant manifestation of this ability is financial interdependency. Other
manifestations of the ability to exercise oversight responsibility include, but are
not limited to, the selection of governing authority, the designation of
management, the ability to significantly influence operations and accountability
for fiscal matters. Other criteria used to evaluate potential component units for
62
inclusion or exclusion from the reporting entity include the existence of special
financing relationships, regardless of whether the City is able to exercise
oversight responsibilities. Based upon the application of these criteria, the
following is a brief review of the component units addressed in defining the
government's reporting entity.
Included with the reporting entity:
Rexburg Urban Renewal Agency – This component unit was organized to make
improvements to infrastructure. It derives its revenues from the incremental tax
increases that all taxing districts forfeit from increase in value of the land and
buildings in the new construction areas.
Cash and Investments – The component unit had total cash and investment
balances of $6,355,372, broken down as follows:
Wells Fargo bank deposits of $140,743, covered by FDIC insurance up to
$250,000. DL Evans Bank Bond Reserve Fund deposit of $351,378, covered up
to $250,000 by FDIC insurance. Idaho State Local Government Investment Pool
of $3,859,085 which is diversified to reduce risk and is mostly invested in US
Government securities, Idaho State Diversified Bond Fund of $2,004,166 which
is diversified to reduce risk and is mostly invested in US Government securities,
for a total of $6,355,372.
Long-term Debt – Revenue Allocation (Tax Increment) Bonds do not constitute
indebtedness within the meaning of any constitutional or statutory debt limitation
or restriction, and does not constitute a general obligation or debt of the City of
Rexburg, Idaho, or any municipality, the State of Idaho, or any of its political
subdivisions. In no event does this Bond give rise to a general obligation or
liability of the Agency, any municipality, the State of Idaho, or any of its political
subdivisions, or give rise to a charge against their general credit or taxing
powers, or be payable out of any funds or properties other than those of the
Agency specifically pledged therefore. Only tax increment property tax revenues,
which are paid to the tax increment district for which the bonds were sold, are
obligated to pay off the bond.
63
Revenue Bonds Outstanding at September 30, 2018 were as follows:
64
18.INTERFUND TRANSACTIONS
Transfers between funds during the year were as follows:
Operating Operating
Governmental: Transfers Out Transfers In
General Fund 2,097,819$ 3,200$
Street Fund (02, 43, 44) 199,886 -
Recreation Fund - 116,332
Tabernacle Fund - 124,961
Rexburg Orchestra Fund - 7,500
Police Impact Fee Fund 427 -
Police DARE Fund - 8,500
Police Grant Fund 3,200 -
Police Animal Control Fund - 144,257
High Five Grant Fund 77,000 -
Emergency Services Fund - 1,579,468
Joint Fire Equipment Fund - 210,000
Madison County Fire District Fund 720,394 -
Fire Impact Fee Fund 70,000 -
Rexburg Rapids Operations Fund - 65,000
Legacy Flight Museum Fund - 14,906
Community Development Fund - 300,587
Downtown Revitalization Fund - 84,131
New Shop Building Fund - 115,755
Street Impact Fee Fund (528,253)
Arts Promulgation Fund 97,356 -
Parks Impact Fee Fund 152,555 35,000
Romance Theatre Fund - 105,489
Riverside Park Construction Fund - 152,555
Street Repairs Fund 374,109 -
New Streets Fund (528,253)
Mayors Youth Advisory Board Fund - 3,500
Airport Operations Fund - 2,000
Airport Construction Fund - 12,929
Airport Relocation Reserve Fund - 169,400
Golf Course Operations Fund 50,096 50,800
Golf Course Construction Fund - 70,096
LID Construction Funds - 455,838
LID Debt Service Funds 81,729 -
Rexburg Cultural Arts Fund - 85,367
EIBC Fund - 7,000
3,396,318$ 3,396,318$
65
The General Fund transfers cash to cover specific expenses or deficits in the
following funds:
Legacy Flight Museum Fund for half the insurance cost
Airport Construction Fund for half of the local share of repairs and
upgrades
Community Development Fund to cover the costs associated with
Planning and Zoning
Rexburg Cultural Arts Fund
Eastern Idaho Business Competition (EIBC) Fund
Mayors Youth Advisory Board Fund
Golf Course Operations Fund to subsidize operating & capital costs
Golf Course Construction Fund loan payback
Airport Operations Fund
Airport Relocation Reserve Fund for future expenditures to relocate the
Airport.
Romance Theatre Fund
Downtown Revitalization Fund
Police Dare Fund
Recreation Programs Fund
Tabernacle Fund
Joint Fire Equipment for its assessment for new fire equipment
Police Animal Control Fund
Rexburg Orchestra Fund
Emergency Services Operations Fund for its share of costs
Rexburg Rapids Fund to cover the future cost of replacing capital or
adding features to the Aquatic facility.
Arts Council Fund for a fixed contribution to its operations
Street Fund transfers cash to cover street expenses in the LID funds, the
Downtown Revitalization Fund or the new Street Shop Fund.
Police Impact Fee Fund transfers the cost of Animal Control qualified capital
expenditures
Police Small Grant Fund Transfers any residual to the General Fund to cover
Police expenditures
The High Five Grant Fund transfers cash to cover qualified expenditures in
Recreation and Parks Funds.
Madison County Fire District Fund transfers cash to the Emergency Services
Operations Fund to cover its allocation of costs for the year and to the
Joint Fire Equipment Fund.
Fire Impact Fee Fund transfers cash to cover the City’s share of new large
equipment costs.
66
The Street Impact Fee Fund transfers cash to the New Street Construction Fund
to help cover the costs of new streets that added capacity to the city’s
circulation system.
The Arts Promulgation Fund transfers cash to cover a portion of the costs for the
Arts Council staff.
The Parks Impact Fee Fund transfers cash to cover costs in Park Construction
Funds
The Golf Course Operations Fund transfers cash to the Golf Course Construction
fund to pay down the loan payable.
The LID Debt Service Funds transfer cash to the LID Construction Funds to
provide for local property owners share of the construction within the LIDs.
The following is a schedule of interfund receivables and payables as of September 30,
2018:
*The above amounts were loaned from the General Fund to the various other
funds to cover cash deficits.
67
19. LEASE WITH HOSPITAL
In 2009 the City entered into a lease agreement, effective October 1, 2009, with
Madison Memorial Hospital to lease a portion of the City building to the Hospital. In
2018, the City reduced the hospital square footage and renewed the lease for
another three years, and payments are in monthly installments of $2,583 or $30,996
annually. The additional square footage was then leased to the Research &
Business Development Center (RBDC) and payments are in monthly installments of
$3,496 or $41,952 annually. The Lease income from the Hospital and RBDC was
$80,051 for the year ended September 30, 2018. Future Lease income is expected
to be $72,948 each year through FY 2019.
20. FUND BALANCES
Beginning in Fiscal year 2011, in accordance with GASB 54, The City began to
classify fund balances depending on the relative strength of the spending constraints
placed on the purposes for which resources can be used as follows:
Nonspendable fund balance- Amounts that cannot be spent because they are not
in spendable form or they are legally or contractually required to be maintained
intact.
Restricted fund balance- Amounts constrained for a specific purpose by external
creditors, grantors, laws, or regulations of other governments.
Committed fund balance- Amounts that can be used only for the specific purposes
determined by a formal action of the City Council.
Assigned fund balance- Amounts intended to be used by the government for
specific purposes. Intent can be expressed by the governing body or by an official or
body to which the governing body delegates the authority. In the case of the City,
this authority is not delegated, which is why there is no assigned fund balance.
Unassigned fund balance- Amounts not contained in the other classifications.
Unassigned amounts are technically available for any purpose. Positive unassigned
amount are only reported in the general fund. GASB 54 states that if another
governmental fund has a fund balance deficit, then it will be reported as a negative
amount in the unassigned classification in that fund. In the case of Rexburg, we
have left negative fund balances in the fund balance category where they would
have been classified if they had a positive fund balance to provide consistency from
year to year on the governmental financial statements and because those deficits will
be paid back with future revenues from those specific funds and not the revenues of
other governmental funds.
The City considers restricted amounts to have been spent first when an expenditure
is incurred for purposes for which multiple classifications may be included in a fund
balance. For example, restricted amounts are used first, followed by committed,
assigned, and unassigned amounts in that order, for purposes of reporting fund
balance.
68
Detail of constraints on fund balances of governmental funds:09/30/18
General Streets
Emergency
Services
Non‐Major
Funds Total Capital Projects
Fund Balances:
Nonspendable:
Inventory 24,279$ ‐$ ‐$ ‐$ 24,279$
Prepaid Expenses ‐ ‐ ‐ ‐ ‐
Restricted for:
Streets ‐ 2,981,754 ‐ ‐ 2,981,754 2,981,754$
Emergency Services ‐ ‐ ‐ ‐ ‐
Police Impact ‐ ‐ ‐ (28,342) (28,342) (28,342)$
DARE ‐ ‐ ‐ 7,570 7,570
Police Drug Enforcement ‐ ‐ ‐ 11,457 11,457
Police Small Grants ‐ ‐ ‐ ‐ ‐
High 5 & Other Grants ‐ ‐ ‐ (4,079) (4,079) (4,079)$
Joint Fire Equipment ‐ ‐ ‐ 410,524 410,524 410,524$
Madison County Fire Prot. District ‐ ‐ ‐ 841,823 841,823
Fire Impact ‐ ‐ ‐ 85,993 85,993 85,993$
ESD Rexburg Employees ‐ ‐ ‐ 28,784 28,784
Legacy Flight Museum ‐ ‐ ‐ 7,731 7,731
GIS ‐ ‐ ‐ 368 368
Downtown Revitalization ‐ ‐ ‐ ‐ ‐
Shop Building Construction ‐ ‐ ‐ ‐ ‐
Street Impact ‐ ‐ ‐ 1,423,579 1,423,579 1,423,579$
ESD Paramedic Care ‐ ‐ ‐ 212,883 212,883
Parks Impact ‐ ‐ ‐ 1,133,376 1,133,376 1,133,376$
Trails of Madison County ‐ ‐ ‐ ‐ ‐
Riverside Park Construction ‐ ‐ ‐ ‐ ‐
Airport Operations ‐ ‐ ‐ (4,010) (4,010)
Airport Construction ‐ ‐ ‐ 93,135 93,135 93,135$
Golf Operations ‐ ‐ ‐ 13,697 13,697
Golf Construction ‐ ‐ ‐ (499,626) (499,626) (499,626)$
LID Construction ‐ ‐ ‐ ‐ ‐
LID Debt Service ‐ ‐ ‐ (222,917) (222,917)
2nd East Construction ‐ ‐ ‐ ‐ ‐
Veterans Memorial ‐ ‐ ‐ 270 270 270$
Shop with a Cop ‐ ‐ ‐ 31,058 31,058
ESD Pipes and Drums ‐ ‐ ‐ 67 67
Arts Council Trust ‐ ‐ ‐ ‐ ‐
City 501c3 Foundation ‐ ‐ ‐ 2,000 2,000
Committed to:
Stabilization 3,070,000 ‐ ‐ ‐ 3,070,000
Recreation ‐ ‐ ‐ (2,402) (2,402)
Tabernacle ‐ ‐ ‐ 30,077 30,077 30,077$
Orchestra ‐ ‐ ‐ 6,295 6,295
Police Animal Control ‐ ‐ ‐ 39,719 39,719
Revolving Loans ‐ ‐ ‐ 1,351,483 1,351,483
Aquatic Center Operations ‐ ‐ ‐ 295,475 295,475
Community Development ‐ ‐ ‐ 1,256,550 1,256,550
Arts Promulgation ‐ ‐ ‐ 131,949 131,949
Romance Theatre ‐ ‐ ‐ 30,084 30,084 30,084$
Mayors Youth Advisory ‐ ‐ ‐ 5,985 5,985
Airport Reserve ‐ ‐ ‐ 710,901 710,901 710,901$
Rexburg Cultural Arts ‐ ‐ ‐ ‐ ‐
Eastern Idaho Business Comp.‐ ‐ ‐ (1,916) (1,916)
Community Safety Lighting ‐ ‐ ‐ 82,956 82,956 82,956$
Assigned to:
Unassigned:1,826,449 ‐ ‐ ‐ 1,826,449
Total Fund Balances 4,920,728$ 2,981,754$ ‐$ 7,482,497$ 15,384,979$ 6,450,602$
Major Revenue Funds
69
General Streets
Emergency
Services
Non‐Major
Funds Total Capital Projects
Fund Balances:
Nonspendable 24,279$ ‐$ ‐$ ‐$ 24,279$ ‐$
Restricted ‐$ 2,981,754$ ‐$ 3,545,341$ 6,527,095$ 5,596,584$
Committed 3,070,000$ ‐$ ‐$ 3,937,156$ 7,007,156$ 854,018$
Assigned ‐$ ‐$ ‐$ ‐$ ‐$ ‐$
Unassigned 1,826,449$ ‐$ ‐$ ‐$ 1,826,449$ ‐$
Total Fund Balances 4,920,728$ 2,981,754$ ‐$ 7,482,497$ 15,384,979$ 6,450,602$
Major Revenue Funds
The City Council has established a minimum fund balance guideline for the general
fund. As a general practice, the City will strive to maintain a total general fund
committed fund balance equal to a minimum of 25% or greater of general fund
budgeted expenditures for the last ended fiscal year. The City Council strives to
maintain a minimum committed fund balance in the general fund to mitigate current
and future risks (e.g., revenue shortfalls, unanticipated expenditures, and natural
disasters or emergencies). Fund balance levels are affected by actual revenues and
expenditures and will be used to achieve and maintain the City’s minimum fund
balance goals and to meet the next year’s budget expenditure requirements. In the
event there is excess fund balance in the general fund over the 25% minimum
reserve, good management of public monies would suggest that the surplus be
designated to future expenses to increase service levels that are currently deficient
and maintain those that are sufficient.
21. FUND BALANCES CLASSIFICATIONS
Beginning in Fiscal year 2011, in accordance with GASB 54, The City began to
classify fund balances depending on the relative strength of the spending constraints
placed on the purposes for which resources can be used. GASB 54 also requires
that negative fund balances be classified as unassigned. The management of the
City feels that this is misleading and inconsistent in the way the City handles its
funds. See Note 19 for the funds that had negative fund balances.
REQUIRED SUPPLEMENTARY INFORMATION
See Independent Auditors’ Report.
71
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Year Ended September 30, 2018
Variance with
Original Final Final Budget -
Budget Budget Actual Amounts Positive
Amount Amount Budgetary Basis (Negative)
REVENUES:
Taxes 6,168,800$ 6,168,800$ 6,421,502$ 252,702$
Grants & Contributions 662,500 665,300 665,128 (172)
Fees & Charges 4,576,000 4,576,000 4,435,721 (140,279)
Interest Earned 130,500 130,500 22,287 (108,213)
Transfers in from Other Funds - - 3,200 3,200
Miscellaneous 401,000 401,000 106,014 (294,986)
TOTAL REVENUES 11,938,800 11,941,600 11,653,852 (287,748)
EXPENDITURES:
General and Administrative Operations 4,139,800 4,101,000 3,797,980 303,020
Public Safety Operations 4,299,200 4,328,800 4,254,766 74,034
Parks and Recreation 784,800 727,900 747,411 (19,511)
Capital Improvements 374,600 379,300 324,383 54,917
Transfers Out 2,175,700 2,218,600 2,097,817 120,783
Contingency 164,700 186,000 - 186,000
TOTAL EXPENDITURES 11,938,800 11,941,600 11,222,357 719,243
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - - 431,495 431,495
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ 431,495$ 431,495$
See Independent Auditors’ Report.
72
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
STREET FUND
Year Ended September 30, 2018
Variance with
Original Final Final Budget -
Budget Budget Actual Amounts Positive
Amount Amount Budgetary Basis (Negative)
REVENUES:
Taxes 2,048,700$ 2,048,700$ 2,192,079$ 143,379$
Grants & Contributions 500,000 1,393,500 2,084,207 690,707
Fees & Charges 1,327,000 1,327,000 1,460,779 133,779
Interest Earned - - --
Miscellaneous 40,000 40,000 -(40,000)
Transfers In -Internal 1,051,200 1,251,200 1,427,126 175,926
Transfers in from Other Funds 410,000 410,000 -(410,000)
Fund Balance Carryover 1,627,100 2,451,700 -(2,451,700)
TOTAL REVENUES 7,004,000 8,922,100 - 7,164,191 (1,757,909)
EXPENDITURES:
Street Maintenance 1,808,500 1,796,300 1,648,071 148,229
Capital Improvements 2,123,000 4,740,500 3,219,235 1,521,265
Contingency 914,100 766,900 -766,900
Transfers Out-Internal 1,051,200 1,051,200 1,427,126 (375,926)
Transfers to Other Street Projects 1,107,200 567,200 1,102,247 (535,047)
TOTAL EXPENDITURES 7,004,000 8,922,100 7,396,679 1,525,421
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - - (232,488) (232,488)
FUND BALANCE AT BEGINNING OF YEAR - - --
FUND BALANCE AT END OF YEAR -$ -$ (232,488)$ (232,488)$
See Independent Auditors’ Report.
73
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
EMERGENCY SERVICES FUND
Year Ended September 30, 2018
Variance with
Original Final Final Budget -
Budget Budget Actual Amounts Positive
Amount Amount Budgetary Basis (Negative)
REVENUES:
Grants & Contributions 1,777,100$ 1,761,500$ 1,741,165$ (20,335)$
Fees & Charges 31,500 31,500 81,726 50,226
Miscellaneous 2,000 2,000 22,399 20,399
Transfers in from Other Funds 1,525,900 1,510,300 1,579,467 69,167
TOTAL REVENUES 3,336,500 3,305,300 3,424,757 119,457
EXPENDITURES:
Public Safety Operations 3,314,500 3,283,300 3,402,323 (119,023)
Capital Improvements 22,000 22,000 22,434 (434)
TOTAL EXPENDITURES 3,336,500 3,305,300 3,424,757 (119,457)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - - - -
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ -$ -$
See Independent Auditors’ Report.
74
Schedule of Employer's Share of Net Pension Liability
PERSI Base Plan
Last 10 Fiscal Years*
Net Pension
Liability % Share
Amount of
Proportionate
Share of Net
Pension
Liability
Covered
Employee
Payroll
Net Pension
Liability % of
Covered
Payroll
Plan Fiduciary
Net Position
as a % of
Total Pension
Liability
2018 0.2651606% 3,911,165$ 8,454,828$ 46.26% 91.69%
2017 0.2405212% 3,780,580$ 7,754,370$ 48.75% 90.68%
2016 0.2346076% 4,755,856$ 6,828,131$ 69.65% 87.26%
2015 0.2354998% 3,101,149$ 6,532,443$ 47.47% 91.38%
Schedule of Employer Contributions
PERSI Base Plan
Last 10 Fiscal Years*
Statutorily
Required
Contributions
Contributions
in Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)
Excess
Employer's
Covered
Employee
Payroll
Contributions
Percent of
Covered
Employee
Payroll
2018 969,398$ 969,304$ (94)$ 8,454,828$ 11.46%
2017 882,116$ 882,266$ 150$ 7,754,370$ 11.38%
2016 782,344$ 783,573$ 1,229$ 6,828,131$ 11.48%
2015 754,259$ 754,704$ 445$ 6,532,443$ 11.55%
*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.
Date report is measured as of June 30, 2018 (measurement date)
CITY OF REXBURG, IDAHO
See Independent Auditors’ Report.
75
Schedule of Employer's Share of Net Pension Liability
PERSI Base FRF Plan
Last 10 Fiscal Years*
Net Pension
Liability %
Share
Amount of
Proportionate
Share of Net
Pension
Liability
Covered
Employee
Payroll
Net Pension
Liability % of
Covered
Payroll
Plan Fiduciary
Net Position
as a % of
Total Pension
Liability
2018 0.0085741% 126,469$ 267,230$ 47.33% 91.69%
2017 0.0081586% 129,239$ 250,204$ 51.65% 90.68%
2016 0.0069380% 140,644$ 203,554$ 69.09% 87.26%
2015 0.0074381% 97,948$ 202,664$ 48.33% 91.38%
Schedule of Employer Contributions
PERSI Base FRF Plan
Last 10 Fiscal Years*
Statutorily
Required
Contributions
Contributions
in Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)
Excess
Employer's
Covered
Employee
Payroll
Contributions
Percent of
Covered
Employee
Payroll
2018 31,160$ 31,159$ (1)$ 267,230$ 11.66%
2017 29,240$ 29,175$ (65)$ 250,204$ 11.66%
2016 24,062$ 23,734$ (328)$ 203,554$ 11.66%
2015 23,584$ 24,308$ 724$ 202,664$ 11.99%
*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.
Date report is measured as of June 30, 2018 (measurement date)
CITY OF REXBURG, IDAHO
See Independent Auditors’ Report.
76
Schedule of Employer's Share of Net Pension Liability
FRF Excess Plan
Last 10 Fiscal Years*
Net Pension
Liability %
Share
Amount of
Proportionate
Share of Net
Pension
Liability
Covered
Employee
Payroll
Net Pension
Liability % of
Covered
Payroll
Plan Fiduciary
Net Position
as a % of
Total Pension
Liability
2018 0.3577169%(404,829)$ 267,230$ -151.49% 140.15%
2017 0.3343618%(286,868)$ 250,204$ -114.65% 129.65%
2016 0.2881284% (154,864)$ 203,554$ -76.08% 118.42%
2015 0.3292887% (177,851)$ 202,664$ -87.76% 118.08%
Schedule of Employer Contributions
FRF Excess Plan
Last 10 Fiscal Years*
Statutorily
Required
Contributions
Contributions
in Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)
Excess
Employer's
Covered
Employee
Payroll
Contributions
Percent of
Covered
Employee
Payroll
2018 13,361$ 13,362$ 1$ 267,230$ 5.00%
2017 12,445$ 12,510$ 65$ 250,204$ 5.00%
2016 10,318$ 10,178$ (140)$ 203,554$ 5.00%
2015 17,600$ 16,894$ (706)$ 202,664$ 8.34%
*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.
Date report is measured as of June 30, 2018 (measurement date)
CITY OF REXBURG, IDAHO
OTHER SUPPLEMENTARY INFORMATION
See Independent Auditor’s Report
78
Fund Number 03 04 05 07 08 09 13
Tabernacle Police
& Rexburg Police Police Drug Small
Recreation Museum Orchestra Impact Fee DARE Enforcement Grants
ASSETS Fund Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments -$ 32,059$ 6,454$ -$ 8,570$ 14,761$ -$
Receivables 16,903 810 - - - - 19,543
TOTAL ASSETS 16,903$ 32,869$ 6,454$ -$ 8,570$ 14,761$ 19,543$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 5,508$ 2,567$ 159$ -$ 1,000$ 3,304$ -$
Due to Other Funds 9,448 - - 28,342 - - 19,543
Other - 150 - - - - -
TOTAL LIABILITIES 14,956 2,717 159 28,342 1,000 3,304 19,543
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 4,349 75 - - - - -
FUND BALANCES (DEFICIT):
Restricted - - - (28,342) 7,570 11,457 -
Committed (2,402) 30,077 6,295 - - - -
Unassigned - - - - - - -
Total Fund Balances (2,402) 30,077 6,295 (28,342) 7,570 11,457 -
TOTAL LIABILITIES AND
FUND BALANCES 16,903$ 32,869$ 6,454$ -$ 8,570$ 14,761$ 19,543$
NONMAJOR GOVERNMENTAL FUNDS
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
September 30, 2018
See Independent Auditor’s Report
79
14 15 18 19 20 21 22 23 24 28 29
Madison
Police High 5 County Fire ESD Rexburg Legacy Geographic
Animal & Other Joint Fire Protection Fire Impact Rexburg Revolving Rapids Flight Community Information
Control Grants Equipment District Fee Employee Loan Operations Museum Development Systems
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
40,394$ -$ 302,090$ 849,877$ 85,993$ 28,805$ 487,270$ 302,267$ 49,450$ 1,262,645$ -$
3,115 - 111,924 24,740 -- 864,213 343 3,280 - 42,769
43,509$ -$ 414,014$ 874,617$ 85,993$ 28,805$ 1,351,483$ 302,610$ 52,730$ 1,262,645$ 42,769$
3,790$ -$ 3,490$ 8,054$ -$21$ -$ 7,135$ 44,999$ 6,095$ 1,493$
- 4,079 - - -- - - - - 40,908
- - - - -- - - - - -
3,790 4,079 3,490 8,054 -21 - 7,135 44,999 6,095 42,401
- - - 24,740 -- - - - - -
- (4,079) 410,524 841,823 85,993 28,784 - - 7,731 - 368
39,719 - - - -- 1,351,483 295,475 - 1,256,550 -
- - - - -- - - - - -
39,719 (4,079) 410,524 841,823 85,993 28,784 1,351,483 295,475 7,731 1,256,550 368
43,509$ -$ 414,014$ 874,617$ 85,993$ 28,805$ 1,351,483$ 302,610$ 52,730$ 1,262,645$ 42,769$
See Independent Auditor’s Report
80
Fund Number 30 31 32 33 36 37 38 39 40
ESD Trails of
Downtown Street Shop Main Fire Street Arts Paramedic Parks Impact Madison Romance
Revitalization Building Const Station Addn Impact Fee Promulgation Care Unit Fee County Theatre
ASSETS Fund Fund Fund Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 143$ 20,472$ -$ 1,424,665$ 131,949$ -$ 1,132,890$ -$ 32,186$
Receivables - - - - - 402,274 1,500 - 300
TOTAL ASSETS 143$ 20,472$ -$ 1,424,665$ 131,949$ 402,274$ 1,134,390$ -$ 32,486$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 143$ 20,472$ -$ 1,086$ -$ 19,916$ 1,014$ -$ 2,552$
Due to Other Funds - - - - - 169,475 - - -
Other - - - - - - - - (150)
TOTAL LIABILITIES 143 20,472 - 1,086 - 189,391 1,014 - 2,402
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - - - - -
FUND BALANCES (DEFICIT):
Restricted - - - 1,423,579 - 212,883 1,133,376 - -
Committed - - - - 131,949 - - - 30,084
Unassigned - - - - - - - - -
Total Fund Balances - - - 1,423,579 131,949 212,883 1,133,376 - 30,084
TOTAL LIABILITIES AND
FUND BALANCES 143$ 20,472$ -$ 1,424,665$ 131,949$ 402,274$ 1,134,390$ -$ 32,486$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2018
See Independent Auditor’s Report
81
41 45 47 48 49 50 51 53-58 59-79 81 83
Mayor's Eastern
Youth Golf Golf Rexburg Idaho
Riverside Advisory Airport Airport Airport Course Course LID LID Debt Cultural Business
Park Board Operation Construction Reserve Operations Construction Construction Service Arts Competition
Fund Fund Fund Fund Fund Fund Fund Funds Funds Fund Fund
-$ 6,767$ -$ 93,135$ 710,901$ 14,257$ -$ 103$ -$ 3,167$ -$
- - 3,480 - - 17,121 9,550 - 518,542 750 -
-$ 6,767$ 3,480$ 93,135$ 710,901$ 31,378$ 9,550$ 103$ 518,542$ 3,917$ -$
-$ 782$ 126$ -$ -$ 15,821$ -$ 103$ 26,977$ 3,917$ -$
- - 7,364 - - - 509,176 - 241,021 - 1,916
- - - - - 1,860 - - 2,600 - -
- 782 7,490 - - 17,681 509,176 103 270,598 3,917 1,916
- - - - 470,861 - -
- - (4,010) 93,135 - 13,697 (499,626) - (222,917) - -
- 5,985 - - 710,901 - - - - - (1,916)
- - - - - - - - - - -
- 5,985 (4,010) 93,135 710,901 13,697 (499,626) - (222,917) - (1,916)
-$ 6,767$ 3,480$ 93,135$ 710,901$ 31,378$ 9,550$ 103$ 518,542$ 3,917$ -$
See Independent Auditor’s Report
82
Fund Number 84 85 90 91 93 94 95
North
2nd East Community Shop Arts City Total
Construc- Safety Veterans with a ESD Pipes Council 501c3 Nonmajor
tion Lighting Memorial Cop & Drums Trust Foundation Governmental
ASSETS Fund Fund Fund Fund Fund Fund Fund Funds
Cash and Short Term
Investments -$ 89,807$ 270$ 31,085$ 67$ -$ 2,000$ 7,164,499$
Receivables 351,885 23,234 - - - - - 2,416,276
TOTAL ASSETS 351,885$ 113,041$ 270$ 31,085$ 67$ -$ 2,000$ 9,580,775$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable -$ 30,085$ -$ 27$ -$ -$ -$ 210,636$
Due to Other Funds 351,885 - - - - - - 1,383,157
Other - - - - - - - 4,460
TOTAL LIABILITIES 351,885 30,085 - 27 - - - 1,598,253
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - - 500,025
FUND BALANCES (DEFICIT):
Restricted - - 270 31,058 67 - 2,000 3,545,341
Committed - 82,956 - - - - - 3,937,156
Unassigned - - - - - - - -
Total Fund Balances - 82,956 270 31,058 67 - 2,000 7,482,497
TOTAL LIABILITIES AND
FUND BALANCES 351,885$ 113,041$ 270$ 31,085$ 67$ -$ 2,000$ 9,580,775$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2018
See Independent Auditor’s Report
83
03 04 05 07 08 09 13
Police
Police Police Drug Small
Recreation Tabernacle Orchestra Impact Fee DARE Enforcement Grants
Fund Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$ -$
Grants and Contributions 27,628 750 1,112 - 11,500 10,000 46,747
Fees and Charges 155,843 11,925 - 97,053 - - -
Interest Earned - 335 - 8 - - -
Miscellaneous - 23 - - - 177 -
TOTAL REVENUES 183,471 13,033 1,112 97,061 11,500 10,177 46,747
EXPENDITURES:
General and Administrative - - - - - - -
Public Safety - - - - 17,045 6,206 32,507
Parks and Recreation and Arts 253,893 108,945 2,802 - - - -
Streets - - - - - - -
Interest on Debt - - - 423 - - -
Principal on Debt - - - - - - -
Capital Improvements 48,312 19,055 - 87,323 - 11,500 11,040
TOTAL EXPENDITURES 302,205 128,000 2,802 87,746 17,045 17,706 43,547
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (118,734) (114,967) (1,690) 9,315 (5,545) (7,529) 3,200
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - - - -
Transfers In 116,332 124,961 7,500 - 8,500 - -
Transfers Out - - - (427) - - (3,200)
TOTAL OTHER FINANCING
SOURCES (USES)116,332 124,961 7,500 (427) 8,500 - (3,200)
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES (2,402) 9,994 5,810 8,888 2,955 (7,529) -
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR - 20,083 485 (37,230) 4,615 18,986 -
FUND BALANCES (DEFICITS)
AT END OF YEAR (2,402)$ 30,077$ 6,295$ (28,342)$ 7,570$ 11,457$ -$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
Year Ended September 30, 2018
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
See Independent Auditor’s Report
84
14 15 18 19 20 21 22 23 24 28 29
Madison
Police High 5 County Fire ESD Rexburg Legacy Geographic
Animal & Other Joint Fire Protection Fire Impact Rexburg Revolving Rapids Flight Community Information
Control Grants Equipment District Fee Employee Loan Operations Museum Development Systems
Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund Fund
-$ -$ -$ 812,602$ -$ -$ -$ -$ -$ -$ -$
15,895 104,986 - - - - 50,000 - 82,486 - 363,293
22,194 - 217,919 - 98,230 5,614 - 447,002 19,394 1,078,163 100
- - 4,360 887 1,918 450 61,222 2,984 241 - -
- - - 11,235 - - - - - - -
38,089 104,986 222,279 824,724 100,148 6,064 111,222 449,986 102,121 1,078,163 363,393
- 22,454 - - - - 53,489 - - 1,218,855 363,025
168,451 - - 169 - 4,870 - - - - -
- - - - - - - 471,869 94,985 - -
- - - - - - - - - - -
- - - - - - - - - - -
- - - - - - - - - - -
- - 389,525 7,977 - - - 5,700 95,000 33,404 -
168,451 22,454 389,525 8,146 - 4,870 53,489 477,569 189,985 1,252,259 363,025
(130,362) 82,532 (167,246) 816,578 100,148 1,194 57,733 (27,583) (87,864) (174,096) 368
- - - - - - - - - - -
144,257 - 210,000 - - - - 65,000 14,906 300,587 -
- (77,000) - (720,394) (70,000) - - - - - -
144,257 (77,000) 210,000 (720,394) (70,000) - - 65,000 14,906 300,587 -
13,895 5,532 42,754 96,184 30,148 1,194 57,733 37,417 (72,958) 126,491 368
25,824 (9,611) 367,770 745,639 55,845 27,590 1,293,750 258,058 80,689 1,130,059 -
39,719$ (4,079)$ 410,524$ 841,823$ 85,993$ 28,784$ 1,351,483$ 295,475$ 7,731$ 1,256,550$ 368$
See Independent Auditor’s Report
85
30 31 33 36 37 38
Street Shop ESD Parks
Downtown Building Street Arts Paramedic Impact
Revitalization Constr Impact Fee Promulgation Care Unit Fee
Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$
Grants and Contributions - - - - - 24,625
Fees and Charges - - 895,326 39,012 648,774 493,023
Interest Earned - - - 2,785 - 21,123
Miscellaneous - - - - - -
TOTAL REVENUES - - 895,326 41,797 648,774 538,771
EXPENDITURES:
General and Administrative - - - - - -
Public Safety - - - - 655,530 -
Parks and Recreation and Arts - - - - - -
Streets - - - - - -
Interest on Debt - - - - 1,347 -
Principal on Debt - - - - - -
Capital Improvements 205,791 115,754 - - - 320,709
TOTAL EXPENDITURES 205,791 115,754 - - 656,877 320,709
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (205,791) (115,754) 895,326 41,797 (8,103) 218,062
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - -
Transfers In 84,131 115,754 - - - 35,000
Transfers Out - - 528,253 (97,356) - (152,555)
TOTAL OTHER FINANCING
SOURCES (USES)84,131 115,754 528,253 (97,356) - (117,555)
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES (121,660) - 1,423,579 (55,559) (8,103) 100,507
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR 121,660 - - 187,508 220,986 1,032,869
FUND BALANCES (DEFICITS)
AT END OF YEAR -$ -$ 1,423,579$ 131,949$ 212,883$ 1,133,376$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year Ended September 30, 2018
See Independent Auditor’s Report
86
40 41 45 47 48 49 50 51 53-58 59-79 81
Mayor's
Youth Golf Golf Rexburg
Romance Riverside Advisory Airport Airport Airport Course Course LID LID Debt Cultural
Theatre Park Board Operation Construction Reserve Operations Construction Construction Service Arts
Fund Fund Fund Fund Fund Fund Fund Fund Funds Funds Fund
-$ -$ -$ -$ -$ -$ -$ -$ -$ -$ -$
2 - - 4,000 110,203 8,671 52,800 20,000 - - -
14,773 - 199 28,087 - - 526,640 - - 117,467 22,814
335 - - - 990 - - - - 21,933 -
- - - - - - 2,811 - - - -
15,110 - 199 32,087 111,193 8,671 582,251 20,000 - 139,400 22,814
- - 3,157 38,533 - - - - 81,729 -
- - - - - - - - - - -
66,190 - - - - - 482,804 - - - 108,184
- - - - - - - - - - -
- - - - 54 - 293 11,648 - 11,137 -
- - - - - - - - - 150,000 -
44,408 152,554 - - 90,035 - 47,529 229,760 374,109 - -
110,598 152,554 3,157 38,533 90,089 - 530,626 241,408 455,838 161,137 108,184
(95,488) (152,554) (2,958) (6,446) 21,104 8,671 51,625 (221,408) (455,838) (21,737) (85,370)
- - - - - - - 229,800 - - -
105,489 152,554 3,500 2,000 12,929 169,400 50,800 70,096 455,838 - 85,370
- - - - - - (50,096) - - (81,732) -
105,489 152,554 3,500 2,000 12,929 169,400 704 70,096 455,838 (81,732) 85,370
10,001 - 542 (4,446) 34,033 178,071 52,329 (151,312) - (103,469) -
20,083 - 5,443 436 59,102 532,830 (38,632) (578,114) - (119,448) -
30,084$ -$ 5,985$ (4,010)$ 93,135$ 710,901$ 13,697$ (729,426)$ -$ (222,917) -$
See Independent Auditor’s Report
87
83 84 85 90 91 93 94 95
Eastern North
Idaho 2nd East Community Shop Arts City Total
Business Construc- Safety Veterans with a ESD Pipes Council 501c3 Nonmajor
Competition tion Lighting Memorial Cop & Drums Trust Foundation Governmental
Fund Fund Fund Fund Fund Fund Fund Fund Funds
REVENUES:
Taxes -$ -$ -$ -$ -$ -$ -$ -$ 812,602$
Grants and Contributions - 88,487 - 700 13,217 3,375 - 2,000 1,042,477
Fees and Charges 492 - 213,486 - - 760 - - 5,154,290
Interest Earned - - - 18 483 216 - - 120,288
Miscellaneous - - - - - - - - 14,246
TOTAL REVENUES 492 88,487 213,486 718 13,700 4,351 - 2,000 7,143,903
EXPENDITURES:
General and Administrative 13,477 - - 5,450 12,971 - - - 1,813,140
Public Safety - - - - - 17,237 - - 902,015
Parks and Recreation and Arts - - - - - - - - 1,589,672
Streets - - 74,489 - - - - - 74,489
Interest on Debt - - - - - - - - 24,902
Principal on Debt - - - - - - - - 150,000
Capital Improvements - 88,487 62,092 - - - - - 2,440,064
TOTAL EXPENDITURES 13,477 88,487 136,581 5,450 12,971 17,237 - - 6,994,282
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (12,985) - 76,905 (4,732) 729 (12,886) - 2,000 149,621
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - - - - - 229,800
Transfers In 7,000 - - - - - - - 2,341,904
Transfers Out - - - - - - - - (724,507)
TOTAL OTHER FINANCING
SOURCES (USES)7,000 - - - - - - - 1,847,197
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES (5,985) - 76,905 (4,732) 729 (12,886) - 2,000 1,996,818
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR 4,069 - 6,051 5,002 30,329 12,953 - - 5,485,679
FUND BALANCES (DEFICITS)
AT END OF YEAR (1,916)$ -$ 82,956$ 270$ 31,058$ 67$ -$ 2,000$ 7,482,497$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
Year Ended September 30, 2018
88
Federal
CFDA Federal
Number Expenditures
DEQ Loan Water Project
*DEQ Loan Proceeds-Forgiveness Amount 66.458 254,697
*DEQ Loan Proceeds 66.458 1,525,736
Total DEQ Loan 66.458 1,780,433
Department of Justice
Vest Grant 16.607 1,908
Federal Aviation Administration:
Airport Improvement Program 20.106 76,974
From Federal-Flow Thru State
Idaho Department of Lands-Turnout Gear 10.664 15,374
Department of Transportation:
Pass Through the State of Idaho:
State & Community Highway Safety/Drager Alcotest 20.600 11,040
State & Community Highway Safety/School Zone-Distracted Driving 20.600 2,485
Highway Safety/Seatbelt/DUI OT Claim 20.600 24,213
Total Department of Transportation 20.600 37,738
Department of Homeland Security:
Direct Reimb.from Seattle-US Customs/Border Prot.-For.Computer 97.067 9,560
Drug Dog 97.067 11,500
97.067 21,060
TOTAL FEDERAL ASSISTANCE 1,933,487$
* Major Program
CITY OF REXBURG, IDAHO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
September 30, 2018
89
See Independent Auditors’ Report.
CITY OF REXBURG, IDAHO
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2018
1.Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal
grant activity of the City of Rexburg, Idaho and is presented in accordance with the
requirements of the Uniform Guidance. Therefore, some amounts presented in this
schedule may differ from amounts presented in, or used in the preparation of the
general-purpose financial statements.
2.Summary of Significant Accounting Policies
Expenditures reported on the Schedule of Expenditures of Federal Awards are
reported on the accrual basis of accounting. Such expenditures are recognized
following the cost principles contained in the Uniform Guidance, wherein certain
expenditures are not allowed or are limited as to reimbursement.
The City does not use the 10% de minimis indirect cost rate.
See Independent Auditors’ Report.
90
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
To the Honorable Mayor and City Council
City of Rexburg, 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 Standards issued by the Comptroller General of the United
States, the financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and
the aggregate remaining fund information of City of Rexburg, Idaho, as of and for the
year ended September 30, 2018, and the related notes to the financial statements,
which collectively comprise City of Rexburg, Idaho’s basic financial statements, and
have issued our report thereon dated March 4, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of
Rexburg, Idaho’s internal control over financial reporting (internal control) to determine
the audit procedures that are appropriate in the circumstances 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 Rexburg, Idaho’s internal control.
Accordingly, we do not express an opinion on the effectiveness of City of Rexburg,
Idaho’s internal control.
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.
91
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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether City of Rexburg, Idaho’s
financial statements are free from 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.
Rexburg, Idaho
March 4, 2019
92
INDEPENDENT AUDITORS’ REPORT ON COMPLIANCE FOR EACH MAJOR
PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY
THE UNIFORM GUIDANCE
To the Honorable Mayor and City Council
City of Rexburg, Idaho
Report on Compliance for Each Major Federal Program
We have audited City of Rexburg, Idaho’s compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct
and material effect on each of City of Rexburg, Idaho’s major federal programs for the
year ended September 30, 2018. City of Rexburg, Idaho’s major federal programs are
identified in the summary of auditors’ results section of the accompanying schedule of
findings and questioned costs.
Management’s Responsibility
Management is responsible for compliance with the requirements of laws, regulations,
contracts, and grants applicable to its federal programs.
Auditor’s Responsibility
Our responsibility is to express an opinion on compliance for each of City of Rexburg,
Idaho’s major federal programs based on our audit of the types of compliance
requirements referred to above. We conducted our audit of compliance in accordance
with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of
Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform
Guidance). Those standards and the Uniform Guidance require that we plan and
perform the audit to obtain reasonable assurance about whether noncompliance with
the types of compliance requirements referred to above that could have a direct and
material effect on a major federal program occurred. An audit includes examining, on a
test basis, evidence about City of Rexburg, Idaho’s compliance with those requirements
and performing such other procedures as we considered necessary in the
circumstances.
93
We believe that our audit provides a reasonable basis for our opinion on compliance for
each major federal program. However, our audit does not provide a legal determination
of City of Rexburg, Idaho’s compliance.
Opinion on Each Major Federal Program
In our opinion, City of Rexburg, Idaho, complied, in all material respects, with the types
of compliance requirements referred to above that could have a direct and material
effect on each of its major federal programs for the year ended September 30, 2018.
Report on Internal Control Over Compliance
Management of City of Rexburg, Idaho, is responsible for establishing and maintaining
effective internal control over compliance with the types of compliance requirements
referred to above. In planning and performing our audit of compliance, we considered
City of Rexburg, Idaho’s internal control over compliance with the types of requirements
that could have a direct and material effect on each major federal program to determine
the auditing procedures that are appropriate in the circumstances for the purpose of
expressing an opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but
not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, we do not express an opinion on the effectiveness of City of
Rexburg, Idaho’s internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a
control over compliance does not allow management or employees, in the normal
course of performing their assigned functions, to prevent, or detect and correct,
noncompliance with a type of compliance requirement of a federal program on a timely
basis. A material weakness in internal control over compliance is a deficiency, or
combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a
timely basis. A significant deficiency in internal control over compliance is a deficiency,
or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance, yet important enough to merit attention by
those charged with governance.
Our consideration of internal control over compliance was for the limited purpose
described in the first paragraph of this section and was not designed to identify all
deficiencies in internal control over compliance that might be material weaknesses or
significant deficiencies. We did not identify any deficiencies in internal control over
compliance that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
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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.
Rexburg, Idaho
March 4, 2019
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CITY OF REXBURG, IDAHO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Section I - Summary of Auditors’ Results
(i) Financial Statements
Type of auditors’ report issued: Qualified
Internal control over financial reporting:
Material weaknesses identified? No
Reportable conditions identified
that are not considered to be
material weaknesses? No
Noncompliance material to financial
statements noted? No
(ii) Federal Awards
Internal control over major programs:
Material weaknesses identified? No
Reportable conditions identified
that are not considered to be
material weaknesses? No
Type of auditors’ report issued on compliance
for major programs: Unmodified
Any audit findings disclosed that are required
to be reported in accordance with 2 CFR Section
200.516(a)? No
See Independent Auditors’ Report.
Identification of major programs:
CFDA Number(s) Name of Federal Program
66.458 Capitalization Grants for Drinking
Water State Revolving Funds
Dollar threshold used to distinguish
between Type A and Type B programs: $750,000
Auditee qualified as low-risk auditee? No
Section II – Financial Statement Finding
None
Section III – Federal Award Findings and Questioned Costs
None
See Independent Auditors’ Report.
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CITY OF REXBURG, IDAHO
SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2018
Section II – Financial Statement Finding
None
Section III – Federal Award Findings and Questioned Costs
None
See Independent Auditors’ Report.
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