HomeMy WebLinkAbout9-30-2021 City of Rexburg, Idaho - Financial StatementsCITY OF REXBURG, IDAHO
CITY OF REXBURG, IDAHO
_______________
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
WITH
INDEPENDENT AUDITOR’S REPORT
YEAR ENDED SEPTEMBER 30, 2021
_______________ draft - pending final approval
CITY OF REXBURG, IDAHO
TABLE OF CONTENTS
Page
INDEPENDENT AUDITORS' REPORT ....................................................................... 1-3
MANAGEMENT’S DISCUSSION AND ANALYSIS ................................................. 4-21
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 draft - pending final approval
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 ................................................................................................... 43
6 Accrued Compensated Absences/Post Employment Health Plan ................. 43-44
7 Health Reimbursement Arrangement (HRA) ....................................................... 44
8 Local Improvement Assessments ....................................................................... 44
9 Local Improvement District Warrants Payable .................................................... 45
10 Wastewater Revenue Bonds Payable ................................................................ 45
11 Water DEQ Loan Payable .................................................................................. 45
12 Obligations Under Capital Leases ...................................................................... 46
13 Changes in Long-term Obligations ..................................................................... 47
14 Bonded Debt Repayment Requirements ............................................................ 48
15 Retirement Plans ........................................................................................... 48-58
16 Other Required Individual Fund Disclosures ................................................. 59-60
17 Component Unit--Rexburg Urban Renewal Agency ...................................... 60-61
18 Interfund Transactions ................................................................................... 62-64
19 Lease with Research & Business Development Center ..................................... 65
20 Fund Balances ............................................................................................... 65-67
21 Fund Balance Classifications.............................................................................. 67
22 Tax Abatement ................................................................................................... 68
23 Coronavirus Pandemic ....................................................................................... 68
24 Schedule of Federal Awards............................................................................... 68
REQUIRED SUPPLEMENTARY INFORMATION:
Budgetary Comparison Schedule – General Fund .................................................... 69
Budgetary Comparison Schedule – Street Fund ....................................................... 70
Budgetary Comparison Schedule – Emergency Services Fund ................................ 71
Schedule of Employer’s Share of Net Pension Liability
And Employer Contribution – PERSI Base Plan ....................................................... 72
Schedule of Employer’s Share of Net Pension Liability
And Employer Contribution – PERSI Base FRF Plan ............................................... 73
Schedule of Employer’s Share of Net Pension Liability
And Employer Contribution – FRF Excess Plan ........................................................ 74
draft - pending final approval
OTHER SUPPLEMENTARY INFORMATION:
Combining Balance Sheet – Nonmajor Governmental Funds .............................. 75-81
Combining Schedule of Revenues, Expenditures and
Changes in Fund Balances – Nonmajor Governmental Funds ........................ 82-89
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 draft - pending final approval
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 unit, each major fund, and the aggregate
remaining fund information of City of Rexburg, Idaho, as of and for the year ended September 30,
2021, 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. draft - pending final approval
Summary of Opinions
Opinion Unit Type of Opinion
Governmental Activities Unmodified
Business-Type Activities Unmodified
Discretely Presented Component Unit Unmodified
General Fund Unmodified
Street Fund Unmodified
Emergency Service Fund Unmodified
LID 45 Construction and LID 30 Bond Funds Qualified
Water Fund Unmodified
Wastewater Fund Unmodified
Sanitation Fund Unmodified
Aggregate Remaining Fund Information Qualified
Basis for Qualified Opinion on LID 45 Construction and LID 30 Bond Funds
Management has not included LID 45 Construction and LID 30 Bond Funds as major funds in the City
of Rexburg’s financial statements. Accounting principles generally accepted in the United States of
America require LID 45 Construction and LID 30 Bond Funds to be separately stated as a major
governmental funds on the Government Funds Balance Sheet and financial information about LID 45
Construction and LID 30 Bond Funds to be separately stated as major funds on the Governmental
Funds Statement of Revenues, Expenditures and Changes in Funds Balances statement. Both funds
are being reported with Other Governmental Funds, and the detail is reported in Other Supplementary
Information. The City’s management does not feel the inclusion of this fund as a major fund is pertinent
to the financial statements as a whole.
Basis for Qualified Opinion on Aggregate Remaining Fund Information
Management has not included negative fund balances as unassigned fund balances in the City’s
financial statements as outlined in footnote 21. 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.
Qualified Opinion
In our opinion, except for the effects of the matters described in the “Basis for Qualified Opinion on
Aggregate Remaining Fund Information” and “Basis for Qualified Opinion on LID 45 Construction and
LID 30 Bond Funds” paragraphs, the financial statements referred to above present fairly, in all material
respects, the financial position of the Aggregate Remaining Fund Information of the City of Rexburg, as
of September 30, 2021, and the changes in financial position thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Unmodified Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component unit, and each major fund of the City of Rexburg, Idaho, as of
September 30, 2021, and the respective changes in financial position, and, where applicable, cash draft - pending final approval
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
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
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 February 16,
2022, 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
February 16, 2022 draft - pending final approval
BASIC FINANCIAL STATEMENTS draft - pending final approval
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 18,746,889$ 19,047,979$ 37,794,868$ 8,034,889$
Receivables 6,447,985 1,496,037 7,944,022 272,754
Supplies 17,645 - 17,645 -
Total Current Assets 25,212,519 20,544,016 45,756,535 8,307,643
Noncurrent Assets:
Revolving Loan Receivable 902,394 - 902,394 -
Capital Assets:
Capital Assets 107,809,396 77,549,522 185,358,918 3,317,850
Accumulated Depreciation (45,260,410) (28,380,636) (73,641,046) -
Net Capital Assets 62,548,986 49,168,886 111,717,872 3,317,850
Total Noncurrent Assets 63,451,380 49,168,886 112,620,266 3,317,850
TOTAL ASSETS 88,663,899 69,712,902 158,376,801 11,625,493
Deferred Outflows of Resources 2,367,910 387,089 2,754,999 -
TOTAL ASSETS AND DEFERRED OUTFLOWS 91,031,809 70,099,991 161,131,800 11,625,493
LIABILITIES:
Current Liabilities:
Accounts Payable 4,247,534 525,826 4,773,360 1,181,683
Accrued Compensated Absences 451,968 83,939 535,907 -
Accrued Payroll Liability 694,900 87,135 782,035 -
Accrued Interest Payable 470,837 470,837 -
Other 52,132 190,366 242,498 -
Current Portion of Long-term
Obligations 45,960 765,000 810,960 625,328
Total Current Liabilities 5,492,494 2,123,103 7,615,597 1,807,011
Noncurrent Liabilities:
Noncurrent Portion of Long-term Obligations 45,960 10,672,846 10,718,806 2,991,409
Net Pension Liability (1,117,702) (30,590) (1,148,292) -
Total Noncurrent Liabilities (1,071,742) 10,642,256 9,570,514 2,991,409
TOTAL LIABILITIES 4,420,752 12,765,359 17,186,111 4,798,420
DEFERRED INFLOWS OF RESOURCES
Pension Deferred Inflows 6,114,177 978,605 7,092,782 -
TOTAL DEFERRED INFLOWS OF RESOURCES 6,114,177 978,605 7,092,782
TOTAL LIABILITIES AND DEFERRED INFLOWS
OF RESOURCES 10,534,929 13,743,964 24,278,893 4,798,420
NET POSITION (DEFICIT):
Invested In Capital Assets,
Net of Related Debt 62,548,985 37,260,204 99,809,189 3,317,850
Restricted for:
Capital projects 15,530,187 3,197,472 18,727,659 2,740,280
Debt service (1,523,233) 913,100 (610,133) 733,070
Intergovernmental Agreement 2,312,975 - 2,312,975 -
Operations (2,290,734) 19,182,957 16,892,223 35,873
Unrestricted 3,918,700 (4,197,707) (279,007) -
TOTAL NET POSITION 80,496,880$ 56,356,026$ 136,852,906$ 6,827,073$
CITY OF REXBURG, IDAHO
STATEMENT OF NET POSITION
GOVERNMENT WIDE
September 30, 2021
Primary Government
draft - pending final approval
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 6,223,316$ 4,696,272$ 391,411$ 3,435,274$ 2,299,641$
Public Safety 10,134,259 3,598,405 2,431,505 2,435,162 (1,669,187)
Parks, Recreation and Arts 3,849,127 1,930,752 93,999 936,357 (888,019)
Streets 6,248,380 4,409,303 3,122,059 1,282,982
Total Governmental Activities 26,455,082 14,634,732 2,916,915 9,928,852 1,025,417
GENERAL REVENUES:
Property Taxes Levied for General Purposes - 4,378,521 - - 4,378,521
Franchise Fees - 172,453 - - 172,453
State Taxes - 3,051,646 - - 3,051,646
Investment Earnings - 52,277 - - 52,277
Miscellaneous - 20,350 - - 20,350
Total General Revenue - 7,675,247 - - 7,675,247
Total Governmental Activities 8,700,664
NET GOVERNMENTAL ASSETS - BEGINNING BALANCE 71,796,216
NET GOVERNMENTAL ASSETS - ENDING BALANCE 80,496,880$
BUSINESS-TYPE ACTIVITIES
Water 3,479,625$ 3,487,508$ -$ 596,068$ 603,951$
Waste Water 4,870,251 6,033,632 - 1,504,406 2,667,787
Sanitation 2,907,445 3,082,762 - 175,317
Total Business-type Activities 11,257,321 12,603,902 - 2,100,474 3,447,055
GENERAL REVENUES:
Investment Earnings - 122,689 - - 122,689
Total Business Type Activities 3,569,744
NET BUSINESS-TYPE ASSETS - BEGINNING BALANCE 52,786,282
NET BUSINESS-TYPE ASSETS - ENDING BALANCE 56,356,026$
TOTAL PRIMARY GOVERNMENT 37,712,403$ 35,036,570$ 2,916,915$ 12,029,326$ 12,270,408$
TOTAL PRIMARY GOVERNMENT NET ASSETS - BEGINNING BALANCE 124,582,498
TOTAL PRIMARY GOVERNMENT NET ASSETS - ENDING BALANCE 136,852,906$
COMPONENT UNIT (REXBURG URBAN RENEWAL AGENCY):
General and Administrative 98,267$ -$ -$ -$ (98,267)$
Property Transfer to City - - - - -
Tax Reimbursement - - - - -
Construction 1,176,292 - - - (1,176,292)
Interest & Amortization Expense 131,995 - - - (131,995)
Total Component Units 1,406,554$ -$ -$ -$ (1,406,554)
GENERAL REVENUES:
Property taxes levied for general purposes 2,329,866
Federal Grant-Property Replacement GPSI 526,549
Overhead Charges for Services 68,759
Investment Earnings 15,725
Total General Revenue 2,940,899
TOTAL COMPONENT UNIT ACTIVITIES 1,534,345
TOTAL COMPONENT UNIT - BEGINNING BALANCE 5,292,728
TOTAL COMPONENT UNIT - ENDING BALANCE 6,827,073$
CITY OF REXBURG, IDAHO
STATEMENT OF ACTIVITIES
GOVERNMENT WIDE
September 30, 2021
Program Revenues
draft - pending final approval
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 3,130,688$ 769,058$ -$ 14,847,143$ 18,746,889$
Receivables 1,046,314 1,764,384 420,097 4,119,584 7,350,379
Inventory 17,645 - 17,645
Due from Other Funds 3,951,778 - - - 3,951,778
TOTAL ASSETS 8,146,425$ 2,533,442$ 420,097$ 18,966,727$ 30,066,691$
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts Payable 1,796,529$ 160,808$ 82,160$ 2,208,037$ 4,247,534$
Accrued Payroll 300,928 35,232 110,842 247,898 694,900
Due to Other Funds - - 185,843 3,765,935 3,951,778
Other 5,000 13,400 - 33,731 52,131
TOTAL LIABILITIES 2,102,457 209,440 378,845 6,255,601 8,946,343
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues 32,041 - 41,250 278,759 352,050
FUND BALANCES:
Nonspendable 17,645 - - - 17,645
Restricted - 2,324,002 - 4,201,675 6,525,677
Committed 3,728,075 - - 8,230,692 11,958,767
Assigned - - - - -
Unassigned 2,266,203 - - - 2,266,203
TOTAL FUND BALANCES 6,011,923 2,324,002 - 12,432,367 20,768,292
TOTAL LIABILITIES AND FUND BALANCES 8,146,421$ 2,533,442$ 420,095$ 18,966,727$ 30,066,685$
CITY OF REXBURG, IDAHO
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
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 20,768,292$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Cost of Assets 107,809,396$
Accumulated Depreciation (45,260,410)
Net Cost of Assets 62,548,986
Certain receivables are not financial resources and are reported
as deferred revenues
Property tax deferred revenue 45,437
Special Assessment deferred revenue 263,278
Deferred recreation revenues 2,010
Deferred capital project grants and contributions 80
Deferred ESD class revenues 41,250
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 2,367,910
Deferred Pension Inflows (6,114,177)
Net Pension Liability 1,117,702
Long-term debt (91,920)
Accrued compensated absences (451,968)
TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES 80,496,880$
September 30, 2021
CITY OF REXBURG, IDAHO
RECONCILIATION OF THE
BALANCE SHEET OF GOVERNMENTAL FUNDS
to the
TO THE STATEMENT OF NET POSITION
draft - pending final approval
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 7,435,533$ 2,437,165$ -$ 1,297,091$ 11,169,789$
Grants and Contributions 6,268,835 1,395,698 1,815,382 2,378,388 11,858,303
Fees and Charges 4,452,100 1,881,776 239,707 5,272,117 11,845,700
Investment Earnings 50,423 - - 78,946 129,369
Miscellaneous 74,614 7,560 16 60,667 142,857
TOTAL REVENUES 18,281,505 5,722,199 2,055,105 9,087,209 35,146,018
EXPENDITURES:
General and Administrative 4,339,762 - - 3,421,787 7,761,549
Public Safety 5,197,885 - 3,806,594 1,361,011 10,365,490
Parks and Recreation 1,027,546 - -2,073,621 3,101,167
Streets - 2,114,796 - 69,284 2,184,080
Interest on Bonds and Other Debt - -- 4,071 4,071
Principal on Bonds and Other Debt - -- 45,962 45,962
Capital Improvements 299,924 1,806,827 116,037 4,125,687 6,348,475
TOTAL EXPENDITURES 10,865,117 3,921,623 3,922,631 11,101,423 29,810,794
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 7,416,388 1,800,576 (1,867,526) (2,014,214) 5,335,224
OTHER FINANCING SOURCES (USES):
Operating Transfers In 10,204 1,867,526 8,416,802 10,294,532
Operating Transfers Out (6,714,402) (857,424) (2,722,706) (10,294,532)
TOTAL OTHER FINANCING
SOURCES (USES)(6,704,198) (857,424) 1,867,526 5,694,096 -
EXCESS OF REVENUES
AND OTHER SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER USES 712,190 943,152 - 3,679,882 5,335,224
FUND BALANCE AT
BEGINNING OF YEAR 5,299,733 1,380,850 8,752,485 15,433,068
FUND BALANCE AT
END OF YEAR 6,011,923$ 2,324,002$ -$ 12,432,367$ 20,768,292$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
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 5,335,224$
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, assets with an initial, individual cost of
more than $5,000 are capitalized and the cost is allocated over their
estimated useful lives and reported as depreciation expense. This is
the amount by which capital outlays are reduced by depreciation in the
current period:
Capital expenditures capitalized as fixed assets 6,269,931
Depreciation expense (3,951,779)
Basis in Assets disposed of (52,698)
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds:
Special assessments levied 843
Changes in Deferred Revenue not in Statement of Net Assets:
Special assessment deferred revenue (187,385)
Property tax deferrals (9,461)
Recreation and cultural arts revenue deferral (2,005)
ESD class revenue deferrals 33,935
Compensated absences accrual adjustment (25,902)
Net Pension (Expense) Revenue 1,246,201
Governmental funds report principal repayment on debt as an
expenditure. However, in the statement of activities debt
payment are not an expense:
Principal payments on long-term liabilities 45,960
Changes in accrued interest (2,200)
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 8,700,664$
September 30, 2021
CITY OF REXBURG, IDAHO
RECONCILIATION OF THE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
to the
STATEMENT OF ACTIVITIES
draft - pending final approval
The Accompanying Notes are an Integral Part of the Financial Statements
28
Water Wastewater Sanitation Total
ASSETS
Current Assets:
Cash and Short-term Investments 10,408,328 7,299,473 1,340,169 19,047,970$
Receivables 571,101 672,582 252,353 1,496,036$
Total Current Assets 10,979,429$ 7,972,055$ 1,592,522$ 20,544,006$
Noncurrent Assets:
Capital Assets:
Capital Assets 29,426,594 44,551,872 3,571,056 77,549,522$
Accumulated Depreciation (8,619,415) (17,572,029) (2,189,192) (28,380,636)$
Total Noncurrent Assets 20,807,179$ 26,979,843$ 1,381,864$ 49,168,886$
TOTAL ASSETS 31,786,608$ 34,951,898$ 2,974,386$ 69,712,892$
Deferred Outflows of Resources 122,745 186,557 77,787 387,089$
TOTAL ASSETS AND DEFERRED OUTFLOWS 31,909,353$ 35,138,455$ 3,052,173$ 70,099,981$
LIABILITIES:
Current Liabilities:
Accounts Payable 57,551 346,281 121,992 525,824$
Accrued Compensated Absences 29,388 44,531 10,018 83,937$
Accrued Payroll Liabilities 30,808 38,787 17,539 87,134$
Accrued Interest Payable 469,326 1,511 -470,837$
Other 189,142 - 1,223 190,365$
Current Portion of Long-term Obligations -765,000 -765,000$
Total Current Liabilities 776,215$ 1,196,110$ 150,772$ 2,123,097$
Noncurrent Liabilities:
Noncurrent Portion of Long-term Obligations 8,322,845 2,350,000 -10,672,845$
Net Pension Liability (9,700) (14,743) (6,147) (30,590)$
TOTAL LIABILITIES 9,089,360$ 3,531,367$ 144,625$ 12,765,352$
DEFERRED INFLOWS OF RESOURCES:
Deferred Inflows of Resources 310,314 471,637 196,654 978,605$
TOTAL LIABILITIES AND DEFERRED INFLOWS
OF RESOURCES 9,399,674$ 4,003,004$ 341,279$ 13,743,957$
NET POSITION:
Invested in Capital Assets Net of Related Debt 12,015,008 23,863,332 1,381,864 37,260,204$
Restricted for:-$
Capital Projects 2,713,093 1,797,478 -4,510,571$
Intergovernmental Agreement -$
Operations 7,781,578 5,474,641 1,329,030 14,585,249$
TOTAL NET POSITION 22,509,679$ 31,135,451$ 2,710,894$ 56,356,024$
Enterprise Funds
CITY OF REXBURG, IDAHO
PROPRIETARY FUNDS
September 30, 2021
Business-type Activities
STATEMENT OF NET POSITION
draft - pending final approval
The Accompanying Notes are an Integral Part of the Financial Statements
29
Water Wastewater Sanitation Totals
OPERATING REVENUES:
Monthly Utility Services 3,417,500 5,168,946 2,737,862 11,324,308$
One Time Fees 86,688 240,155 36,765 363,608$
Miscellaneous 51,240 3,800 2,007 57,047$
TOTAL OPERATING REVENUES 3,555,428$ 5,412,901$ 2,776,634$ 11,744,963$
OPERATING EXPENSES:
Utility Expenses 2,359,857 3,437,392 2,460,000 8,257,249$
Depreciation and Amortization 746,339 1,346,502 228,590 2,321,431$
TOTAL OPERATING EXPENSES 3,106,196$ 4,783,894$ 2,688,590$ 10,578,680$
OPERATING INCOME 449,232$ 629,007$ 88,044$ 1,166,283$
NON-OPERATING REVENUES / EXPENSES:
Sale of Capacity and Contributions/Grants 474,019 1,963,592 2,437,611$
Contributed Capital 132,404 180,632 313,036$
Sale of Assets 3,400 - 300,000 303,400$
Basis in Assets Sold (701) (30,597) (218,454) (249,752)$
Interest Income 93,262 46,242 8,289 147,793$
Unrealized Gain (Loss)(89,070) (31,070) (120,140)$
Interest Expense (372,726) (55,758) (428,484)$
TOTAL NON-OPERATING REVENUES / EXPENSES 240,588$ 2,073,041$ 89,835$ 2,403,464$
CHANGE IN NET POSITION 689,820$ 2,702,048$ 177,879$ 3,569,747$
TOTAL NET POSITION - BEGINNING BALANCE 21,819,859$ 28,433,403$ 2,533,015$ 52,786,277$
TOTAL NET POSITION - ENDING BALANCE 22,509,679$ 31,135,451$ 2,710,894$ 56,356,024$
Business-type Activities
Enterprise Funds
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION
PROPRIETARY FUNDS
September 30, 2021
draft - pending final approval
The Accompanying Notes are an Integral Part of the Financial Statements
30
PROPRIETARY FUNDS
Water Wastewater Sanitation Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from Customers 3,605,281 5,433,216 2,738,123 11,776,620$
Payments to Suppliers (908,187) (1,101,688) (1,256,949) (3,266,824)$
Payments to Employees (786,079) (1,083,041) (455,542) (2,324,662)$
Internal Activity - Payments to Other Funds for Services (823,709) (1,232,753) (728,868) (2,785,330)$
Other Payments (4,038) (5,090) (2,521) (11,649)$
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,083,268$ 2,010,644$ 294,243$ 3,388,155$
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Sale of Capacity and Contributions 474,019 1,963,592 2,437,611$
Acquisitions of Property, Plant and Equipment (843,117) (2,503,094) (318,179) (3,664,390)$
Increase (Decrease) in Accounts Payable on Capital (16,824) - - (16,824)$
(Increase) Decrease in Accounts Receivable for Capital (140,826) 118,995 - (21,831)$
Proceeds from Sale of Assets 3,400 - 300,000 303,400$
Interest Income 100,984 43,577 3,222 147,783$
Principal Payments on Revenue Bonds -(750,000) - (750,000)$
Interest Payments (372,726) (55,758)- (428,484)$
Increase (Decrease) in Interest Payable for Capital 372,726 (363)- 372,363$
Unrealized Gain (Loss) on Investments (89,070) (31,070)- (120,140)$
Contributed Capital 132,405 180,630 - 313,035$
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (379,029)$ (1,033,491)$ (14,957)$ (1,427,477)$
NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 704,239$ 977,153$ 279,286$ 1,960,678$
CASH AND INVESTMENTS AT BEGINNING OF YEAR 9,704,089$ 6,322,320$ 1,060,883$ 17,087,292$
CASH AND INVESTMENTS AT END OF THE YEAR 10,408,328$ 7,299,473$ 1,340,169$ 19,047,970$
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating Income (Loss)449,232 629,007 88,044 1,166,283$
Adjustments to Reconcile Operating Income to
Depreciation and Amortization 746,338 1,346,502 228,590 2,321,430$
Net Pension Expense (Revenue)(48,815) (74,192) (30,935) (153,942)$
Changes in Assets and Liabilities:
(Increase) Decrease in accounts receivable (1,746) 24,590 (36,498) (13,654)$
Increase (Decrease) in payroll accrual 2,820 873 2,031 5,724$
Increase (Decrease) in accounts payable (123,728) 72,009 39,075 (12,644)$
Increase (Decrease) in accrued compensated absences 4,184 11,855 3,708 19,747$
Increase (Decrease) in deposits payable 54,983 -228 55,211$
NET CASH PROVIDED BY OPERATING ACTIVITIES 1,083,268$ 2,010,644$ 294,243$ 3,388,155$
Business-Type Activities -
Enterprise Funds
September 30, 2021
CITY OF REXBURG
STATEMENT OF CASH FLOWS
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
31
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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
32
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Separate financial statements are provided for governmental funds and fiduciary funds, even
though the latter are excluded from the government-wide financial 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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
33
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
34
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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 outflows of resources (expense/expenditure)
until then. draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
35
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 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, 2021 the City amended the budget for several of the funds.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
36
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES(concluded)
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 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 February 16, 2022; 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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
37
2. CASH AND SHORT-TERM INVESTMENTS(continued)
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, 2021, the carrying amount of the City’s bank deposits
including Certificates of Deposits (CDs) was $8,693,349, of which $1,613,696 were
insured with the FDIC or NCUA and $5,000,187 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,
2021, $1,407,211 of the City’s total deposits and $672,255 of the Fire District
Deposits were not covered by federal depository insurance, and thus was exposed to
custodial credit risk.
Investments – As of September 30, 2021, the City had the following:
WAM S&P More
Investment Type Years Rating Fair Value Less Than 1 1-5 6-10 Than 10
State Diversified Bond Fund 3.200 N/A 4,141,900$ 1,204,201$ 2,172,619$ 765,080$ -$
State Investment Pool 0.411 N/A 9,837,735 9,497,462$ 340,273$ -$ -
Moreton Asset Management 1.280 N/A 5,381,106 3,575,141 1,805,965 - -
Zions Bank Capital Advisors 2.326 N/A 5,223,224 3,104,723 2,118,501 - -
TVI Bond Investments 3.040 N/A 4,187,486 1,258,259 2,339,758 589,470
Certificates of Deposit N/A N/A 1,577,456 1,577,456 - - -
Collateralized Municipal MM Fund N/A N/A 5,000,187 5,000,187 - - -
Total 35,349,094$ 25,217,428 8,777,116 1,354,550 -
Investment Maturity (in Years)
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
38
2. CASH AND SHORT-TERM INVESTMENTS(continued)
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 following is a reconciliation of the City’s deposit and investment balance as of
September 30, 2021:
Investments 35,349,094
Petty Cash 2,770
Bank Deposits 2,115,706
Land 327,298
Total 37,794,868
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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
39
2. CASH AND SHORT-TERM INVESTMENTS(concluded)
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 except for the land which as
categorized at a Level 3 which was determined by recent purchase price and appraisal.
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.
Fair Value Measurements at Reporting Date Using
Fair Value
Quoted Prices in
Active Markets for
Identical Assets/
Liabilities
(Level 1)
Significant
Other
Observable
Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
State Diversified Bond Fund 4,141,900$ -$ 4,141,900$ -$
State Investment Pool 9,837,735 - 9,837,735 -
Moreton Asset Management 5,381,106 5,381,106 - -
Zions Bank Capital Advisors 5,223,224 5,223,224 - -
TVI Bond Investments 4,187,486 4,187,486 - -
Certificates of Deposit 1,577,456 1,577,456 - -
Collateralized Municipal MM Fund 5,000,187 5,000,187 - -
Petty Cash 2,770 2,770 - -
Bank Deposits 2,115,706 2,115,706 - -
Land 327,298 - - 327,298
Total 37,794,868$ 23,487,935$ 13,979,635$ 327,298$
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
40
3. CAPITAL ASSETS
Governmental capital assets activity for the year ended September 30, 2021, was as follows:
30-Sep 30-Sep
PRIMARY GOVERNMENT:2020 Increases Decreases 2021
GOVERNMENTAL ACTIVITIES:
Capital assets, not being depreciated:
Land 4,673,041$ 138,645$ -$ 4,811,686$
Total capital assets, not being
depreciated 4,673,041 138,645 - 4,811,686
Capital assets, being depreciated
Office 2,816,229 198,142 (81,867) 2,932,503
Archer station 1,753,145 - (57,255) 1,695,890
Police 3,397,330 50,950 (266,324) 3,181,956
Fire 8,331,321 116,037 (81,428) 8,365,930
Engineering 251,211 - (98,724) 152,487
GIS 154,643 - (38,842) 115,801
Community development 391,272 37,000 (28,297) 399,975
Streets 56,368,206 3,859,071 (16,553) 60,210,725
Shop 1,418,420 - - 1,418,420
Golf Courses 2,444,187 215,512 (57,845) 2,601,853
Parks 7,892,030 1,114,750 (43,346) 8,963,434
Merry-go-round 143,091 - - 143,091
Ball diamond 40,893 - - 40,893
Airport 3,390,371 43,809 (1,000) 3,433,180
Fiber 72,617 26,095 - 98,711
Recreation 6,476,168 40,654 (6,403) 6,510,418
Romance Theatre 900,696 297,864 - 1,198,560
Legacy of Flight Museum 725,118 119,000 - 844,118
Tabernacle 677,363 12,403 - 689,766
Total capital assets, being
depreciated 97,644,311 6,131,286 (777,886) 102,997,711
Less accumulated depreciation (42,033,819) (3,951,779) 725,187 (45,260,411)
Total capital assets, being
depreciated, net 55,610,492 2,179,507 (52,699) 57,737,300
GOVERNMENTAL ACTIVITIES CAPITAL
ASSETS, NET 60,283,533$ 2,318,152$ (52,699)$ 62,548,986$
Total Including Land 102,317,352$ 6,269,931$ (777,886)$ 107,809,397$
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
41
3. CAPITAL ASSETS(concluded)
Depreciation expense was charged to the government activities as follows:
General and Administrative 357,226$
Public Safety 504,599
Parks and Recreation 761,789
Street 2,328,165
Total Depreciation 3,951,779$
Business-type fund capital assets activity for the year ended September 30, 2021, was as
follows:
30-Sep 30-Sep
PRIMARY GOVERNMENT:2020 Increases Decreases 2021
BUSINESS-TYPE ACTIVITIES:
Capital assets, not being depreciated:
Land 203,160$ 211,816$ -$ 414,976$
Total capital assets, not being
depreciated 203,160 211,816 - 414,976
Capital assets, being depreciated:
Sanitation 3,607,421 318,180 (354,544) 3,571,056
Water 28,601,190 631,302 (102,993) 29,129,498
Wastewater 42,268,839 2,503,095 (337,942) 44,433,992
Total capital assets, being
depreciated 74,477,450 3,452,576 (795,479) 77,134,547
Less accumulated depreciation:
Sanitation (2,096,690) (228,590) 136,088 (2,189,192)
Water (7,975,367) (746,339) 102,291 (8,619,415)
Wastewater (16,532,871) (1,346,502) 307,344 (17,572,029)
Total accumulated depreciation (26,604,929) (2,321,431) 545,724 (28,380,636)
Total capital assets, being
depreciated, net 47,872,521 1,131,145 (249,755) 48,753,911
BUSINESS-TYPE ACTIVITIES CAPITAL
ASSETS, NET 48,075,681$ 1,342,961$ (249,755)$ 49,168,886
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
42
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, 2021 are as follows:
Recipient Repayment Terms Amount
Robertson Taylor, LLC Receivable in monthly installments
including interest through 2028.61,355$
Patriot Company Receivable in monthly installments
including interest through 2034.180,852
Appible, LLC Receivable in monthly installments
including interest through 2017.21,103
Coates Landscape Receivable in monthly installments
including interest through 2037. 329,900
Stoney Court Playcare, LLC Receivable in monthly installments 184,184
including interest through 2040.
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
902,394$
Between cash in the Development Company and cash/investments the City is holding, there
is a total of $521,424 which is available for future revolving loan projects. draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
43
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.
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,
2021, are based on the assessed values and tax revenues established in 2020.
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:
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
44
6. ACCRUED COMPENSATED ABSENCES/ HRA-VEBA(concluded)
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.
Once the employee retires, the HRA-VEBA eligible funds will be available for the employee to
use on qualified medical expenses as allowed by the IRS code found in section 213 (d). The
ending balance of the HRA-VEBA funds was $569,363 as of September 30, 2021.
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.draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
45
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. As of September 30, 2021, there were no warrants outstanding. The City has
self-funded the deficits in the LID Debt Service Funds by borrowing from the General Fund.
10. WASTEWATER REVENUE BONDS PAYABLE
Wastewater Revenue Bonds outstanding at September 30, 2021, were as follows:
Description Interest Rate Fiscal Years Balance
Wastewater Revenue Bonds - Series*
2020 Private Placement (original amount $10,000,000)1.23% 2022 to 2025 3,115,000$
*The City completed a tax-exempt current refunding (refinance of 2010 bond)
in June of 2020 that will save the City/Sewer Operating Fund $309,460
more in cash flow savings from interest savings (after fees).
The bond ordinance for the revenue bonds provides for the establishment of certain
accounts and reserves and further provides that all revenues of the wastewater system are
to be used initially for payment of operation and maintenance costs of the system, principal
and interest on the bonds, and establishment of certain defined debt repayment reserves.
11. WATER DEQ LOAN PAYABLE
Water DEQ Loan outstanding as of September 30, 2021:
Description Interest Rate Fiscal Years Balance
Water DEQ Loan Payable 1.75% 2022 to 2050 8,322,845$
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
$8,888,750. The accrued interest is added to the loan upon each draw and the final
amortization schedule of payments will be calculated when the full capacity of the loan is
drawn.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
46
12. OBLIGATIONS UNDER CAPITAL LEASES
The City Golf Construction Fund has a lease outstanding as of September 30, 2021:
The following is a schedule of fixed assets and outstanding
liabilities relating to capital lease agreements:
Capital
Fixed Leases
Assets Payable
Equipment 229,800$ 91,920$
229,800$ 91,920$
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, 2021.
Year Ending Governmental
September 30, 2021 Type Funds
91,920$
Total Minimum Lease Payments 96,056
Less Amount Representing Interest (4,136)
Present Value of Minimum Lease Payments 91,920
Current Portion of Present Value (45,960)
Long-Term Portion of Present Value 45,960$
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
47
13. CHANGES IN LONG-TERM OBLIGATIONS
A summary of long-term transactions of the City for the year ended September 30, 2021, is
as follows:
Long-Term Long-Term
Obligations Obligations
September 30, Obligations Obligations September 30, Due Within
2020 Incurred Paid 2021 One Year
Governmental activities:
Obligations under capital
Lease (Note 12)137,880$ -$ (45,960)$ 91,920$ 45,960$
Accrued compensated
absences (Note 6)426,066 25,902 - 451,968 451,968
PERSI Net Pension Liability
(See Notes)4,817,264 - (5,934,966) (1,117,702) -
Governmental Activity
Long-Term Liabilities 5,381,210$ 25,902$ (5,980,926)$ (573,814)$ 497,928$
Business-type activities:
Accrued compensated
absences (Note 6)64,190$ 19,749$ -$ 83,939$ 83,939$
PERSI Net Pension Liability 861,685 - (892,275) (30,590) -
(See Notes)
Water DEQ Loan (Note 11) 8,322,845 - - 8,322,845 -
Wastewater revenue bonds
payable (Note 10) 3,865,000 - (750,000) 3,115,000 765,000
Business-type Activity
Long-Term Liabilities 13,113,720$ 19,749$ (1,642,275)$ 11,491,194$ 848,939$
Total Governmental and
Business-type Activiites
Long-Term Liabilities 18,494,930$ 45,651$ (7,623,201)$ 10,917,380$ 1,346,867$
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
48
14. BONDED DEBT REPAYMENT REQUIREMENTS
The annual requirements to amortize all bonded debt outstanding as of September 30, 2021,
including interest, are as follows:
Year Ending
September 30, Total
Principle Interest Principle Interest
2022 293,072$ 155,103$ 765,000$ 36,757$ 1,249,932$
2023 293,072 149,933 775,000 27,730 1,245,735
2024 293,072 144,763 785,000 18,585 1,241,420
2025 293,072 139,593 790,000 9,322 1,231,987
2026 293,072 134,423 - - 427,495
2027-2031 1,465,362 594,562 - - 2,059,924
2032-2036 1,465,362 465,309 - - 1,930,671
2037-2041 1,465,362 336,057 - - 1,801,419
2042-2046 1,465,362 206,804 - - 1,672,166
2047-2051 1,465,362 77,552 - - 1,542,914
Total Commitment 8,792,170$ 2,404,099$ 3,115,000$ 92,394$ 14,403,663$
*Loan Terms not Finalized Yet on Water DEQ Loan
Water DEQ Loan* Wastewater Revenue Bonds
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 as of September 30,
2021, however we have not finalized this loan term or decided how much principal will be
paid down before the loan is finalized. The total amount differs from what is noted in the
financial statements.
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 2021,
the PERSI base plan fiduciary net position as a percentage of total pension liability
was 100.36%, up 12.14% from the prior year at June 30, 2020. As of June 30 2021, the
PERSI FRF plan fiduciary net position as a percentage of total pension liability was
211.83%, up 56.28% from the prior year at June 30, 2020.draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
49
15. RETIREMENT PLANS(continued)
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 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
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
50
15. RETIREMENT PLANS(continued)
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. 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 74% for police and firefighters. As of June
30, 2021, the employee contribution rate was 7.16% for general employees and 9.13% for
police and firefighters. The employer contribution rate as a percent of covered payroll is set
by the Retirement Board and was 11.94% for general employees and 12.28% for police and
firefighters. The City’s contributions required and paid to the Base Plan were $1,170,630 for
the year ended September 30, 2021.
As of June 30, 2021, the total FRF employer rate was 12.28%.The FRF member rate for the
year for class B is 9.13%. The City’s contributions were $41,906 for the year ended
September 30, 2021.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At September 30, 2021, 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 June 30, 2021, 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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
51
15. RETIREMENT PLANS(continued)
The City’s proportion of the net pension liability, expense, and deferrals is split into three
parts:
1) Base Plan including non-FRF firemen 0.2638486%
2) Base Plan including FRF firemen 0.0089592%
3) FRF Excess Costs Plan. 0.3452044%
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,
2021.
For the year ended September 30, 2021, the City recognized pension expense (revenue) of:
Base Plan: $ (1,165,187)
Base FRF Plan: $ (43,193)
FRF Excess Plan: $ (932,835)
At September 30, 2021, the City reported deferred outflows of resources and deferred inflows
of resources related to the Base Plan pension plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience 307,022$ 121,126$
Changes in assumptions or other inputs 2,391,959 -
Net difference between projected and actual
earnings on pension plan investments - 6,545,124
Changes in the employer's proportion and
differences between the employer's
contributions and the employer's
proportionate contributions (371,243) -
Employer contributions subsequent to the
measurement date 309,113 -
Total 2,636,851$ 6,666,250$
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
52
15. RETIREMENT PLANS(continued)
$309,113 reported as deferred outflows of resources related to Base Plan pensions resulting
from Employer contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ending September 30, 2021.
The average of the expected remaining service lives of all employees that are provided with
pensions through the System (active and inactive employees) determined at July 1, 2021 the
beginning of the measurement period ending June 30, 2020, is 4.8 years and 4.6 for the
years measurement period June 30, 2021.
At September 30, 2021, the City reported deferred outflows of resources and deferred inflows
of resources related to the Base FRF pension plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience 10,425$ 4,113$
Changes in assumptions or other inputs 81,221 -
Net difference between projected and actual
earnings on pension plan investments - 222,246
Changes in the employer's proportion and
differences between the employer's
contributions and the employer's
proportionate contributions 12,827 -
Employer contributions subsequent to the
measurement date 13,675 -
Total 118,148$ 226,359$
$13,675 reported as deferred outflows of resources related to Base FRF pensions resulting
from Employer contributions subsequent to the measurement date will be recognized as a
reduction of the net pension liability in the year ending September 30, 2021.
The average of the expected remaining service lives of all employees that are provided with
pensions through the System (active and inactive employees) determined at July 1, 2021 the
beginning of the measurement period ending June 30, 2021, is 4.8 years and 4.6 years for
the measurement period June 30, 2021. draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
53
15. RETIREMENT PLANS(continued)
At September 30, 2021, the City reported deferred outflows of resources and deferred inflows
of resources related to the FRF Excess pension plan from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and actual
experience -$ -$
Changes in assumptions or other inputs - -
Net difference between projected and actual
earnings on pension plan investments - 200,173
Changes in the employer's proportion and
differences between the employer's
contributions and the employer's
proportionate contributions - -
Employer contributions subsequent to the
measurement date - -
Total -$ 200,173$
The average of the expected remaining service lives of all employees that are provided with
pensions through the System (active and inactive employees) determined at July 1, 2020 the
beginning of the measurement period ending June 30, 2020, is 1 year and 1 year for the
measurement period June 30, 2021.
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
2022 (933,235)$ (31,689)$ (51,044)$
2023 (841,035)$ (28,558)$ (47,676)$
2024 (734,969)$ (24,956)$ (44,548)$
2025 (1,458,031)$ (49,509)$ (56,905)$
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
54
15. RETIREMENT PLANS(continued)
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 June 30, 2021 actuarial valuation for the Base Plan and the
July 1, 2016 actuarial valuation for the FRF Plan were determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Base Plan FRF
Inflation 2.30% 2.30%
Salary increases including inflation 3.05% 3.05%
Investment rate of return 6.35% * 6.35% *
Cost-of-living adjustments 1.00% 3.05%
*net of pension plan investment expense
Contributing Members, Service Retirement Members, and Beneficiaries
General Employees and All Beneficiaries-Males Pub-2010 General Tables, increased 11%.
General Employees and All Beneficiaries-Females Pub-2010 General Tables, increased 21%.
Teachers - Males Pub-2010 Teacher Tables, increased 12%.
Teachers - Females Pub-2010 Teacher Tables, increased 21%.
Fire & Police - Males Pub-2010 Safety Tables, increased 21%.
Fire & Police - Females Pub-2010 Safety Tables, increased 26%.
Disabled Members - Males Pub-2010 Disabled Tables, increased 38%.
Disabled Members - Females Pub-2010 Disabled Tables, increased 36%. draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
55
15. RETIREMENT PLANS(continued)
For the Base Plan, an experience study was performed for the period July 1, 2015 through
June 30, 2020 which reviewed all economic and demographic assumptions other than
mortality. The Total Pension Liability as of June 30, 2021 is based on the results of an
actuarial valuation date of July 1, 2021.
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, 2020 is based
on the results of an actuarial valuation date of July 1, 2020.
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 2021 for the both the Base Plan and
the FRF Plan.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
56
15. RETIREMENT PLANS(continued)
Long-Term Expected Long-Term Expected
Target Nominal Rate of Real Rate of
Asset Class Allocation Return (Arithmetic) Return (Arithmetic)
Core Fixed Income 30.00%1.80%-0.20%
Broad US Equities 55.00%8.00%6.00%
Developed Foreign Equities 15.00%8.25%6.25%
Assumed Inflation - Mean 2.00%2.00%
Assumed Inflation - Standard Deviation 1.50%1.50%
Portfolio Arithmetic Mean Return 6.18%4.18%
Portfolio Standard Deviation 12.29%12.29%
Portfolio Long-term Expected
Geometric Rate of Return 5.55%3.46%
Assumed Investment Expenses 0.40%0.40%
Portfolio Long-term Expected (Geometric)
Rate of Return, Net of Investment Expenses 5.15%3.06%
Capital Market Assumptions from Callan 2021
Discount Rate
The discount rate used to measure the total pension liability was 6.35%. 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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
57
15. RETIREMENT PLANS(continued)
Sensitivity of the Employer’s proportionate share of the net pension liability to changes in the
discount rate.
The following presents the Employer’s proportionate share of the net pension liability
calculated using the discount rate of 6.35 percent, as well as what the Employer’s
proportionate share of the net pension liability would be if it were calculated using a discount
rate that is 1-percentage-point lower (5.35 percent) or 1-percentage-point higher (7.35
percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(5.35%) (6.35%) (7.35%)
7,243,808$ (208,382)$ (6,317,092)$
Current
1% Decrease Discount Rate 1% Increase
(5.35%) (6.35%) (7.35%)
245,970$ (7,076)$ (214,502)$
Current
1% Decrease Discount Rate 1% Increase
(5.35%) (6.35%) (7.35%)
(856,708)$ (932,835)$ (998,716)$
FRF Excess Plan
Base Plan
Base FRF Plan
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
58
15. RETIREMENT PLANS(concluded)
Pension plan fiduciary net position
Detailed information about the pension plan’s fiduciary net position is available in the
separately issued PERSI financial report.
PERSI issues a publicly available financial report that includes financial statements and the
required supplementary information for PERSI. That report may be obtained on the PERSI
website at www.persi.idaho.gov.
Payables to the pension plan
At September 30, 2021, the City reported payables to the Base Plan of $-0-, and $-0- for the
FRF Plan for legally required employer contributions. The City also reported payables to the
Base Plan of $-0-, and $-0- 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 2021 fiscal year payroll for all employees was $11,922,930; of which
$7,495,361 was for covered payroll for employees who were members of the Plan. Employer
and employee contributions to the Plan were 2.00% and 4.75% respectively, of covered
payroll. Total contributions to the Plan for the fiscal year by the City and the employees were
$149,907 and $350,152 respectively. The Plan had $8,812,158 in net assets at September
30, 2021.
457 (b) Plan
Effective October 1, 2020, the city adopted and started a 457 (b) plan that the City Council
motioned to accept in a prior council meeting. The Plan adopted is the State of Idaho Plan
through Nationwide that is designed for state and local governments. It is primarily funded on
a voluntary basis by our employees and offers no matching contributions from the employer.
Employees can choose to contribute either as a pre-taxed Roth IRA or a tax-deferred basis.
The city does offer a one-time incentive for signing up of $100 if the employee is willing to
contribute 3% or more and commit to do so for a 12- month minimum.draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
59
16. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
The City expenditures exceeded the budgeted amounts in the following funds during the year
ended September 30, 2021:
Amount
Fund Budget Actual Exceeded Notes
Street Operations Fund 3,878,400$ 4,340,407$ 462,007$
Excess revenues transferred
to street reconstruction fund
ESD Department
Operations Fund 3,898,500$ 3,922,627$ 24,127$
Excess revenues reduced
joint entity shares
Legacy Flight Museum
Fund 147,000$ 226,729$ 79,729$
Excess
contributions/contibuted assets
covered increased expenses
Sanitation Operations Fund 2,540,000$ 2,907,046$ 367,046$
Higher operating costs and
asset disposals
ESD Paramedic
Care/Wildland Fund 845,100$ 1,121,834$ 276,734$
Higher call volume than
expected-revenues received to
cover increased expenses
Golf Course Operations
Fund 1,029,500$ 1,167,045$ 137,545$
Excess revenues more than
covered increased expenses
LID 50 Construction Fund 1,359,000$ 2,453,397$ 1,094,397$
Extremely large voluntary
project added to LID
LID 51 Construction Fund -$ 50,407$ 50,407$
Engineering cost to start
project early
LID Guarantee Fund -$ 16,552$ 16,552$
Closed out LID 30 w/transfer
from guarantee fund
LID Debt Service Funds 330,700$ 1,704,391$ 1,373,691$
Extremely large voluntary
project added to LID
N 2nd E Construction Fund 600,000$ 1,394,662$ 794,662$
Project from prior year carried
over-covered by URA
Contribution
The following individual funds had fund deficits on September 30, 2021:
Airport Operation Fund-- There is a fund deficit of $4,346. The City expects to eliminate
this deficit in fiscal year 2022 with grants and contributions and the city transfer.
Golf Course Construction Fund-- There is a fund deficit of $367,478. 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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
60
16. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES(concluded)
LID Construction Fund--There is a fund deficit of $46,541. The City expects to eliminate
this deficit as the LID Project 50 is completed in Fiscal Year 2022 with transfers from the
LID Debt Service Fund for property owner amounts and a transfer from the Street Repair
Fund for street portions of the expenses.
LID Debt Service Funds-- There is a cumulative fund deficit of $1,786,510. The City
expects to eliminate this deficit as assessments are collected on the LID financed
projects over time. The City also has $50,871 in an LID Guarantee Fund to offset any
shortfalls over time if necessary.
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 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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
61
17. COMPONENT UNIT – REXBURG URBAN RENEWAL AGENCY (concluded)
Cash and Investments – The component unit had total cash and investment balances of
$8,034,889 broken down as follows:
Beehive Credit Union bank deposits of $909,043; covered by NCUA insurance up to
$250,000. DL Evans Bank Bond Reserve Fund deposit of $275,254; covered up to
$250,000 by FDIC insurance. Idaho State Local Government Investment Pool of
$6,743,125; which is diversified to reduce risk and is mostly invested in US Government.
securities, Idaho State Diversified Bond Fund of $107,467; which is diversified to reduce
risk, and is mostly invested in US Government securities
Long-term Debt – Revenue Allocation (Tax Increment) Bonds do not constitute
indebtedness within the meaning of any constitutional or statutory debt limitation or
restriction, and does not constitute a general obligation or debt of the City of Rexburg,
Idaho, or any municipality, the State of Idaho, or any of its political subdivisions. In no
event does this Bond give rise to a general obligation or liability of the Agency, any
municipality, the State of Idaho, or any of its political subdivisions, or give rise to a charge
against their general credit or taxing powers, or be payable out of any funds or properties
other than those of the Agency specifically pledged therefore. Only tax increment
property tax revenues, which are paid to the tax increment district for which the bonds
were sold, are obligated to pay off the bond.
Revenue Bonds Outstanding at September 30, 2021 were as follows:
September 30, 2021
Description Interest Rate Fiscal Years Balance
North Highway Revenue Allocation Bonds
Refunding Series 2016, Dated November 15, 2016 4.06% 2022 449,797$
(original amount - $ 4,656,000 (2010)/refund amount $2,553,070)to 4.47%
North Interchange Revenue Allocation Bonds 3.05% 2022-2036 3,166,940$
New negotiated Loan 2021 Series Dated July 1, 2021
(original amount - $ 3,500,000 (2016)/refund amount $3,257,800) Total 3,616,737$
Scheduled Payments Principal Interest Total
2022 625,328 107,742 733,070
2023 181,001 91,099 272,101
2024 186,400 85,701 272,101
2025 192,450 79,650 272,101
2026 198,448 73,653 272,101
2027 204,632 67,469 272,101
2028-2032 1,122,585 237,918 1,360,503
2033-2036 905,893 58,552 964,445
Total 3,616,736$ 801,785$ 4,418,521$ draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
62
18. INTERFUND TRANSACTIONS
Transfers between funds during the year were as follows:
Operating Operating
Governmental: Transfers Out Transfers In
General Fund 6,714,403$ 10,205$
Recreation Fund - 82,978
Tabernacle Fund - 108,478
Rexburg Orchesta Fund - 479
Police DARE Fund - 8,500
Police Grant Fund 10,205 -
Police Animal Control Fund - 163,483
High Five Grant Fund - -
Emergency Services Fund - 1,867,522
Joint Fire Equipment Fund - 210,000
Madison County Fire District Fund 789,610 -
Fire Impact Fee Fund 70,000 -
Revolving Loan Fund 20,000
Rexburg Rapids Operations Fund - 75,000
Legacy Flight Museum Fund - 15,000
Planning and Zoning - 354,285
New City/Police Building Fund - 400,000
Street Impact Fee Fund - -
Arts Promulgation Fund 15,754 -
Parks Impact Fee Fund 30,000 -
Madison Trails Fund - 55,000
Romance Theatre Fund - 310,931
Riverside Park Construction Fund - 529,000
Street Repairs Fund 857,422 -
New Streets Fund - -
Mayors Youth Advisory Board Fund - (7,794)
Airport Operations Fund - 6,400
Airport Construction Fund - 13,022
Airport Relocation Reserve Fund - 30,000
Golf Course Operations Fund 50,100 142,700
Golf Course Construction Fund - 75,100
LID Construction Funds - 2,577,909
LID Debt Service Funds 1,737,039 16,553
Rexburg Cultural Arts Fund - 31,508
Fiber Initiative Fund - 3,191,900
EIBC Fund - 27,500
Veterans Memorial - (1,126)
10,294,533$ 10,294,533$ draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
63
18. INTERFUND TRANSACTION(continued)
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(this department will be moved back to the general fund in Fiscal Year 2022 and not
require a future transfer)
Rexburg Cultural Arts Fund
Eastern Idaho Business Competition (EIBC) Fund
Mayors Youth Advisory Board Fund(This fund was closed out in Fiscal Year 2021. Future
expenses and revenues will be accounted for in the general fund with no transfer necessary)
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(This department will be moved back to the general fund in Fiscal
Year 2022 and not require a future transfer)
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
Veterans Memorial Fund for a fixed contribution to its operations(This fund was closed
out in Fiscal year 2021. Future expenses will be accounted for in the parks department in the
general fund and not require future transfers)
Trails Fund to connect existing trails and build new ones
Parks Capital Reserve to Construction Fund for future purchase of new playground
equipment
Fiber Initiative Fund to plan for and seek to expand fiber services to all residents
New City and Police Building Fund to save for future construction of these buildings
Street Fund transfers cash to cover street expenses in the LID funds
Police Small Grant Fund Transfers any residual to the General Fund to cover Police
expenditures
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
64
18. INTERFUND TRANSACTION(concluded)
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
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 or other large construction projects at the venues
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 on carts
The LID Debt Service Funds transfer cash to the LID Construction Funds to provide for
local property owners share of the construction within the LID
The Revolving Loan Fund transfers to other funds to cover designated projects
The following is a schedule of interfund receivables and payables as of September 30, 2021:
Due From Due To
Primary Government:Other Funds Other Funds
General Fund*3,951,778$ -$
Emergency Services Fund - 185,843
Police Small Grants Fund - 8,008
Geographic Information Systems Fund - 66,520
ESD Paramedic Care Unit Fund - 539,488
Airport Operation Fund - 43,028
Golf Course Construction Fund - 407,878
LID Construction/Debt Service Funds - 1,771,359
North 2nd East Construction Fund - 929,654
3,951,778$ 3,951,778$
*The above amounts were loaned from the General Fund to the various other funds to cover
cash deficits.draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
65
19. LEASE WITH RESEARCH & BUSINESS DEVELOPMENT CENTER
In 2021 the Planning and Building Department moved into the old space that Madison
Memorial Hospital leased and we terminated the lease with the hospital and refunded their
deposit. The additional square footage on that side of the hallway is still leased to the
Research & Business Development Center (RBDC) and payments are in monthly
installments of $3,010 or $36,120 annually. This lease was renegotiated in 2021. The Lease
income from the RBDC was $37,970 for the year ended September 30, 2021. They also
pay an additional amount to cover common costs.
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.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
66
20. FUND BALANCES(continued)
Detail of constraints on fund balances of governmental funds:
General Streets
Emergency
Services
Non‐Major
Funds Total
Capital
Projects
Fund Balances:
Nonspendable:
Inventory 17,645$ ‐$ ‐$ ‐$ 17,645$ ‐$
Prepaid Expenses ‐ ‐ ‐ ‐ ‐ ‐
Restricted for:
Streets ‐ 2,324,002 ‐ ‐ 2,324,002 2,324,002
Police Impact ‐ ‐ ‐ 184,615 184,615 184,615
DARE ‐ ‐ ‐ 23,727 23,727 ‐
Police Drug Enforcement ‐ ‐ ‐ 3,122 3,122 ‐
High 5 & Other Grants ‐ ‐ ‐ 69,774 69,774 69,774
Joint Fire Equipment ‐ ‐ ‐ 1,408,634 1,408,634 1,408,634
Madison County Fire Prot. District ‐ ‐ ‐ 1,360,509 1,360,509 ‐
Fire Impact ‐ ‐ ‐ 36,269 36,269 36,269
ESD Rexburg Employees ‐ ‐ ‐ 25,210 25,210 ‐
Legacy Flight Museum ‐ ‐ ‐ 84,388 84,388 ‐
Street Impact ‐ ‐ ‐ 1,810,697 1,810,697 1,810,697
ESD Paramedic Care ‐ ‐ ‐ 237,985 237,985 ‐
Parks Impact ‐ ‐ ‐ 256,244 256,244 256,244
Trails of Madison County ‐ ‐ ‐ 155,693 155,693 155,693
Riverside Park Construction ‐ ‐ ‐ 333,910 333,910 333,910
Airport Operations ‐ ‐ ‐ (4,346) (4,346) ‐
Airport Construction ‐ ‐ ‐ 113,738 113,738 113,738
Golf Operations ‐ ‐ ‐ 249,525 249,525 ‐
Golf Construction ‐ ‐ ‐ (367,478) (367,478) (367,478)
LID Construction ‐ ‐ ‐ (46,541) (46,541) (46,541)
LID Debt Service ‐ ‐ ‐ (1,786,510) (1,786,510) ‐
Shop with a Cop ‐ ‐ ‐ 47,441 47,441 ‐
City 501c3 Foundation ‐ ‐ ‐ 5,069 5,069 ‐
Committed to:
Stabilization 3,728,075 ‐ ‐ ‐ 3,728,075 ‐
Tabernacle ‐ ‐ ‐ 51,743 51,743 51,743
Revolving Loans ‐ ‐ ‐ 1,423,367 1,423,367 ‐
Aquatic Center Operations ‐ ‐ ‐ 212,672 212,672 212,672
Building Safety‐Comm Dev ‐ ‐ ‐ 1,372,553 1,372,553 ‐
Joint City Hall/Police Building Cap Res ‐ ‐ ‐ 400,000 400,000 400,000
Arts Promulgation ‐ ‐ ‐ 102,818 102,818 ‐
Airport Reserve ‐ ‐ ‐ 966,300 966,300 966,300
Fiber Initiative Fund ‐ ‐ ‐ 3,184,034 3,184,034 3,184,034
Eastern Idaho Bus. Comp.‐ ‐ ‐ 23,666 23,666 ‐
Community Safety Lighting ‐ ‐ ‐ 493,539 493,539 493,539
Assigned to:
Unassigned:2,266,203 ‐ ‐ ‐ 2,266,203 ‐
Total Fund Balances 6,011,923$ 2,324,002$ ‐$ 12,432,367$ 20,768,292$ 11,587,845$
Major Revenue Funds
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
67
20. FUND BALANCES(concluded)
General Streets
Emergency
Services
Non‐Major
Funds Total
Capital
Projects
Fund Balances:
Nonspendable 17,645$ ‐$ ‐$ ‐$ 17,645 ‐$
Restricted ‐ 2,324,002 ‐ 4,201,675 6,525,677 6,279,557
Committed 3,728,075 ‐ ‐ 8,230,692 11,958,767 5,308,288
Assigned ‐ ‐ ‐ ‐ ‐ ‐
Unassigned 2,266,203 ‐ ‐ ‐ 2,266,203 ‐
Total Fund Balances 6,011,923$ 2,324,002$ ‐$ 12,432,367$ 20,768,292 11,587,845$
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 20 for the funds
that had negative fund balances.
draft - pending final approval
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2021
68
22. TAX ABATEMENT
Madison County entered into an agreement with a major tax payer regarding a new
construction addition to a processing plant. The agreement was to abate a portion of the
taxes on the new construction over a period of five years. The total amount of the new
construction was $118,135,295. This was placed on the tax rolls for Madison County on
January 1, 2021 effecting the taxes being collected starting in December of 2021,
subsequent to the current fiscal year of the City. The abatement will be 90% of the tax in the
first year, 80% in the second year, 60% in the third year, 40% in the fourth year and 20% in
the final year. The value of the property will be adjusted for depreciation for each year of the
abatement. After the fifth year the property will go back on as new construction at the full
cost of the new project. The effect of the abatement to the City will be the mill levy for each
year multiplied by the value of the new construction at the percent of reduction as listed
above for each year the abatement is in place.
23. CORONAVIRUS PANDEMIC
The City has been impacted by the effects of the world-wide coronavirus pandemic. The City
is closely monitoring its operations, liquidity, and capital resources and is actively working to
minimize the current and future impact of this unprecedented situation. As of the date of the
issuance of these financial statements the full impact to the City’s financial position is not
known.
24. SCHEDULE OF FEDERAL AWARDS
The City is required to report on its expenditures of federal award for the fiscal year ending
September 30, 2021. As of the date of the financial statements, the required Single Audit
over these expenditures is still in process. When the Schedule of Federal Awards and
Single Audit are completed, a separate report will be issued at that time. draft - pending final approval
REQUIRED SUPPLEMENTARY INFORMATION
draft - pending final approval
See Independent Auditors’ Report.
69
Variance with
Original Final Final Budget -
Budget Budget Actual Amounts Positive
Amount Amount Budgetary Basis (Negative)
REVENUES:
Taxes 7,356,400$ 5,954,100$ 7,435,533$ 1,481,433$
Grants & Contributions 693,800 5,770,599 6,268,835 498,236
Fees & Charges 4,498,100 4,502,100 4,452,100 (50,000)
Interest Earned 85,000 85,000 50,423 (34,577)
Transfers in from Other Funds 7,800 7,800 10,204 2,404
Miscellaneous 823,300 1,766,601 74,614 (1,691,987)
TOTAL REVENUES 13,464,400 18,086,200 18,291,709 205,509
EXPENDITURES:
General and Administrative Operations 4,115,400 4,469,000 4,339,762 129,238
Public Safety Operations 5,101,900 5,123,600 5,197,885 (74,285)
Parks and Recreation 958,100 971,400 1,027,543 (56,143)
Capital Improvements 244,500 536,300 299,924 236,376
Transfers Out 2,894,500 6,985,900 6,714,402 271,498
Contingency 150,000 - - -
TOTAL EXPENDITURES 13,464,400 18,086,200 17,579,516 506,684
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - - 712,193 712,193
FUND BALANCE AT BEGINNING OF YEAR - - 5,299,733 5,299,733
FUND BALANCE AT END OF YEAR -$ -$ 6,011,926$ 6,011,926$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
Year Ended September 30, 2021
draft - pending final approval
See Independent Auditors’ Report.
70
Variance with
Original Final Final Budget -
Budget Budget Actual Amounts Positive
Amount Amount Budgetary Basis (Negative)
REVENUES:
Taxes 1,987,900$ 2,224,900$ 2,437,165$ 212,265$
Grants & Contributions 2,550,000 2,550,000 1,395,698 (1,154,302)
Fees & Charges 1,633,500 1,633,500 1,881,776 248,276
Interest Earned - - - -
Miscellaneous 20,000 20,000 7,560 (12,440)
Transfers In -Internal 1,285,300 1,522,300 1,788,884 266,584
Transfers in from Other Funds 2,000,000 2,000,000 - (2,000,000)
Fund Balance Carryover 1,573,100 1,573,100 - (1,573,100)
TOTAL REVENUES 11,049,800 11,523,800 7,511,083 (4,012,717)
EXPENDITURES:
Street Maintenance 2,235,700 2,245,900 2,114,796 131,104
Capital Improvements 6,361,000 6,361,000 1,806,827 4,554,173
Contingency 8,800 235,600 - 235,600
Transfers Out-Internal 1,285,300 1,522,300 1,788,884 (266,584)
Transfers to Other Street Projects 1,159,000 1,159,000 857,422 301,578
TOTAL EXPENDITURES 11,049,800 11,523,800 6,567,929 4,955,871
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - - 943,154 943,154
FUND BALANCE AT BEGINNING OF YEAR - - 1,380,850 1,380,850
FUND BALANCE AT END OF YEAR -$ -$ 2,324,004$ 2,324,004$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
STREET FUND
Year Ended September 30, 2021
draft - pending final approval
See Independent Auditors’ Report.
71
Variance with
Original Final Final Budget -
Budget Budget Actual Amounts Positive
Amount Amount Budgetary Basis (Negative)
REVENUES:
Grants & Contributions 1,955,100 1,955,100$ 1,815,382 (139,718)
Fees & Charges 59,300 59,300 239,707 180,407
Miscellaneous 500 500 16 (484)
Transfers in from Other Funds 1,883,600 1,883,600 1,867,522 (16,078)
TOTAL REVENUES 3,898,500 3,898,500 3,922,627 24,127
EXPENDITURES:
Public Safety Operations 3,876,500 3,876,500 3,806,590 69,910
Capital Improvements 22,000 22,000 116,037 (94,037)
TOTAL EXPENDITURES 3,898,500 3,898,500 3,922,627 (24,127)
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - - - -
FUND BALANCE AT BEGINNING OF YEAR - - - -
FUND BALANCE AT END OF YEAR -$ -$ -$-$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
EMERGENCY SERVICES FUND
Year Ended September 30, 2021
draft - pending final approval
See Independent Auditors’ Report.
72
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
2021 0.2638486%(208,381)$ 9,788,027$ -2.13% 100.36%
2020 0.2588251%6,010,261$ 9,482,345$ 63.38%88.22%
2019 0.2637191%3,010,280$ 9,174,510$ 32.81%93.79%
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%
Statutorily
Required
Contributions
Contributions
in Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)
Excess
Employer's
Covered
Employee
Payroll
Contributions
Percent of
Covered
Employee
Payroll
2021 1,168,690$ 1,170,630$ 1,940$ 9,788,027$ 11.94%
2020 1,132,192$ 1,132,270$ 78$ 9,482,345$ 11.94%
2019 1,041,243$ 1,041,007$ (236)$ 9,174,510$ 11.35%
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 be presented in this table.
Howeber, until a full 10-year trend is compiled, the City will present inforamtion for those
years for which information is available.
Date report is measured as of June 30, 2021 (measurement date)
Last 10 Fiscal Years*
CITY OF REXBURG, IDAHO
Schedule of Employer's Share of Net Pension Liability
PERSI Base Plan
Last 10 Fiscal Years*
Schedule of Employer Contributions
PERSI Base Plan
draft - pending final approval
See Independent Auditors’ Report.
73
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
2021 0.0089592%(7,076)$ 341,254$ -2.07% 100.36%
2020 0.0078675%182,694$ 228,656$ 79.90% 88.22%
2019 0.0082998%94,740$ 287,660$ 32.93% 93.79%
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%
Statutorily
Required
Contributions
Contributions in
Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)
Excess
Employer's
Covered
Employee
Payroll
Contributions
Percent of
Covered
Employee
Payroll
2021 41,906$ 41,906$ -$ 341,254$ 12.28%
2020 28,079$ 28,079$ -$ 228,656$ 12.28%
2019 33,541$ 33,542$ 1$ 287,660$ 11.66%
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 be presented in this table.
Howeber, until a full 10-year trend is compiled, the City will present inforamtion for those
years for which information is available.
Date report is measured as of June 30, 2021 (measurement date)
CITY OF REXBURG, IDAHO
Schedule of Employer's Share of Net Pension Liability
PERSI Base FRF Plan
Last 10 Fiscal Years*
Schedule of Employer Contributions
PERSI Base FRF Plan
Last 10 Fiscal Years*
draft - pending final approval
See Independent Auditors’ Report.
74
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
2021 0.3452044%(932,835)$ 296,518$ N/A 211.83%
2020 0.3452044%(514,006)$ 271,530$ -189.30%155.55%
2019 0.3484669%(500,934)$ 287,660$ -174.14%152.74%
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%
Statutorily
Required
Contributions
Contributions in
Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)
Excess
Employer's
Covered
Employee
Payroll
Contributions
Percent of
Covered
Employee
Payroll
2021 -$ -$ -$ 296,518$ 0.00%
2020 9,015$ 9,015$ -$ 271,530$ 3.32%
2019 14,384$ 14,383$ (1)$ 287,660$ 5.00%
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 be presented in this table.
Howeber, until a full 10-year trend is compiled, the City will present inforamtion for those
years for which information is available.
Date report is measured as of June 30, 2021 (measurement date)
CITY OF REXBURG, IDAHO
Schedule of Employer's Share of Net Pension Liability
FRF Excess Plan
Last 10 Fiscal Years*
Schedule of Employer Contributions
FRF Excess Plan
Last 10 Fiscal Years*draft - pending final approval
OTHER SUPPLEMENTARY INFORMATION draft - pending final approval
See Independent Auditors’ Report
75
Fund Number 03 04 07 08 09 13
Tabernacle Police
& Rexburg Police Police Drug Small
Recreation Museum Impact Fee DARE Enforcement Grants
ASSETS Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 2,130$ 57,767$ 184,615$ 23,756$ 3,122$ -$
Receivables 11,151 - - 4,536 - 9,627
TOTAL ASSETS 13,281$ 57,767$ 184,615$ 28,292$ 3,122$ 9,627$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 7,445$ 2,491$ -$ 4,565$ -$ 1,619$
Accrued Payroll 3,826 2,708 - - - -
Due to Other Funds - - - - - 8,008
Other - 750 - - - -
TOTAL LIABILITIES 11,271 5,949 - 4,565 - 9,627
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 2,010 75 - - - -
FUND BALANCES (DEFICIT):
Restricted - 51,743 184,615 23,727 3,122 -
Committed - - - - - -
Unassigned - - - - - -
Total Fund Balances - 51,743 184,615 23,727 3,122 -
TOTAL LIABILITIES AND
FUND BALANCES 13,281$ 57,767$ 184,615$ 28,292$ 3,122$ 9,627$
NONMAJOR GOVERNMENTAL FUNDS
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
76
14 15 18 19 20 21
Madison
Police High 5 County Fire ESD
Animal & Other Joint Fire Protection Fire Impact Rexburg
Control Grants Equipment District Fee Employee
ASSETS Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 7,140$ 69,774$ 1,205,561$ 1,360,612$ 36,269$ 25,210$
Receivables 485 - 203,073 13,396 - -
TOTAL ASSETS 7,625$ 69,774$ 1,408,634$ 1,374,008$ 36,269$ 25,210$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 2,087$ -$ -$ 103$ -$ -$
Accrued Payroll 5,538 - - - - -
Due to Other Funds - - - - - -
Other - - - - - -
TOTAL LIABILITIES 7,625 - - 103 - -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - 13,396 - -
FUND BALANCES (DEFICIT):
Restricted - 69,774 1,408,634 1,360,509 36,269 25,210
Committed - -- - - -
Unassigned - -- - - -
Total Fund Balances - 69,774 1,408,634 1,360,509 36,269 25,210
TOTAL LIABILITIES AND
FUND BALANCES 7,625$ 69,774$ 1,408,634$ 1,374,008$ 36,269$ 25,210$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
77
22 23 24 28 29 33
Rexburg Legacy Building Geographic Joint City
Revolving Rapids Flight Safety Information Hall/Police
Loan Operations Museum Comm Dev Systems Building Capital
ASSETS Fund Fund Fund Fund Fund Reserve Fund
Cash and Short Term
Investments 521,424$ 229,321$ 82,021$ 1,416,863$ -$ 400,000$
Receivables 902,393 11,130 3,000 - 78,752 -
TOTAL ASSETS 1,423,817$ 240,451$ 85,021$ 1,416,863$ 78,752$ 400,000$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 450$ 25,159$ 633$ 9,963$ 1,974$ -$
Accrued Payroll - 2,620 - 34,347 10,258
Due to Other Funds - - - - 66,520 -
Other - - - - -
TOTAL LIABILITIES 450 27,779 633 44,310 78,752 -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - -
FUND BALANCES (DEFICIT):
Restricted 1,423,367 - 84,388 - - 400,000
Committed - 212,672 - 1,372,553 - -
Unassigned - - - - - -
Total Fund Balances 1,423,367 212,672 84,388 1,372,553 - 400,000
TOTAL LIABILITIES AND
FUND BALANCES 1,423,817$ 240,451$ 85,021$ 1,416,863$ 78,752$ 400,000$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
78
33 36 37 38 39 40
ESD Trails of
Street Arts Paramedic Parks Impact Madison Romance
Impact Fee Promulgation Care Unit Fee County Theatre
ASSETS Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 1,810,697$ 102,818$ -$ 281,550$ 140,094$ 16,474$
Receivables - - 955,249 - 139,778 -
TOTAL ASSETS 1,810,697$ 102,818$ 955,249$ 281,550$ 279,872$ 16,474$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable -$ -$ 13,884$ 25,306$ 124,179$ 14,918$
Accrued Payroll - 163,892 - - 1,406
Due to Other Funds - - 539,488 - - -
Other - - - - - 150
TOTAL LIABILITIES - - 717,264 25,306 124,179 16,474
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - -
FUND BALANCES (DEFICIT):
Restricted 1,810,697 - 237,985 256,244 155,693 -
Committed -102,818 - - - -
Unassigned - - - - - -
Total Fund Balances 1,810,697 102,818 237,985 256,244 155,693 -
TOTAL LIABILITIES AND
FUND BALANCES 1,810,697$ 102,818$ 955,249$ 281,550$ 279,872$ 16,474$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
79
47 48 49 50 51
Golf Golf
Riverside Airport Airport Airport Course Course
Park Operation Construction Reserve Operations Construction
ASSETS Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 343,126$ -$ 115,499$ 966,300$ 432,013$ -$
Receivables - 45,087 - - 6,600 40,400
TOTAL ASSETS 343,126$ 45,087$ 115,499$ 966,300$ 438,613$ 40,400$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 9,216$ 5,853$ 1,761$ -$ 136,687$ -$
Accrued Payroll - 552 - - 19,570 -
Due to Other Funds - 43,028 - - - 407,878
Other - - - - 32,831 -
TOTAL LIABILITIES 9,216 49,433 1,761 - 189,088 407,878
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - -
FUND BALANCES (DEFICIT):
Restricted 333,910 (4,346) 113,738 966,300 249,525 (367,478)
Committed - - - - - -
Unassigned - - - - - -
Total Fund Balances 333,910 (4,346) 113,738 966,300 249,525 (367,478)
TOTAL LIABILITIES AND
FUND BALANCES 343,126$ 45,087$ 115,499$ 966,300$ 438,613$ 40,400$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
80
Fund Number 59-79 81 82 83 84
Eastern North
Rexburg Idaho 2nd East
LID LID Debt Cultural Fiber Business Construc-
Construction Service Arts Initiative Competition tion
ASSETS Funds Funds Fund Fund Fund Fund
Cash and Short Term
Investments 1,259,367$ -$ 4,787$ 3,184,034$ 30,153$ -$
Receivables - 274,695 2,500 - - 1,394,662
TOTAL ASSETS 1,259,367$ 274,695$ 7,287$ 3,184,034$ 30,153$ 1,394,662$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 1,305,908$ 26,568$ 4,106$ -$ 6,487$ 465,008$
Accrued Payroll - - 3,181 - - -
Due to Other Funds - 1,771,359 - - - 929,654
Other - -- - - -
TOTAL LIABILITIES 1,305,908 1,797,927 7,287 - 6,487 1,394,662
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - 263,278 - - - -
FUND BALANCES (DEFICIT):
Restricted (46,541) (1,786,510) - - - -
Committed - - - 3,184,034 23,666 -
Unassigned - - - - - -
Total Fund Balances (46,541) (1,786,510) - 3,184,034 23,666 -
TOTAL LIABILITIES AND
FUND BALANCES 1,259,367$ 274,695$ 7,287$ 3,184,034$ 30,153$ 1,394,662$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
81
Fund Number 85 91 95
Community Shop City Total
Safety with a 501c3 Nonmajor
Lighting Cop Foundation Governmental
ASSETS Fund Fund Fund Funds
Cash and Short Term
Investments 482,136$ 47,441$ 5,069$ 14,847,143$
Receivables 23,070 - - 4,119,584
TOTAL ASSETS 505,206$ 47,441$ 5,069$ 18,966,727$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 11,667$ -$ -$ 2,208,037$
Accrued Payroll - - - 247,898
Due to Other Funds - - - 3,765,935
Other - - - 33,731
TOTAL LIABILITIES 11,667 - - 6,255,601
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - 278,759
FUND BALANCES (DEFICIT):
Restricted - 47,441 5,069 7,043,085
Committed 493,539 - - 5,389,282
Unassigned - - - -
Total Fund Balances 493,539 47,441 5,069 12,432,367
TOTAL LIABILITIES AND
FUND BALANCES 505,206$ 47,441$ 5,069$ 18,966,727$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
82
03 04 05 07 08 09
Police Police Drug
Recreation Tabernacle Orchestra Impact Fee DARE Enforcement
Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$
Grants and Contributions 16,210 16,963 - - 11,500 -
Fees and Charges 212,731 19,227 - 50,053 - -
Interest Earned - 110 - 77 - -
Miscellaneous - -- -- -
TOTAL REVENUES 228,941 36,300 - 50,130 11,500 -
EXPENDITURES:
General and Administrative - - - - - -
Public Safety - - - - 14,598 6,759
Parks and Recreation and Arts 311,919 122,375 - - - -
Streets - - - - - -
Interest on Debt - - - (67) - -
Principal on Debt - - - - - -
Capital Improvements - 12,403 - - - -
TOTAL EXPENDITURES 311,919 134,778 - (67) 14,598 6,759
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (82,978) (98,478) - 50,197 (3,098) (6,759)
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - - -
Transfers In 82,978 108,478 478 - 8,500 -
Transfers Out - - - - - -
TOTAL OTHER FINANCING
SOURCES (USES)82,978 108,478 478 - 8,500 -
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES - 10,000 478 50,197 5,402 (6,759)
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR - 41,743 (478) 134,418 18,325 9,881
FUND BALANCES (DEFICITS)
AT END OF YEAR -$ 51,743$ -$ 184,615$ 23,727$ 3,122$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
83
13 14 15 18 19 20
Madison
Police Police High 5 County Fire
Small Animal & Other Joint Fire Protection Fire Impact
Grants Control Grants Equipment District Fee
Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ 955,349$ -$
Grants and Contributions 38,792 2,464 - - - -
Fees and Charges - 22,602 - 206,004 - 28,951
Interest Earned - - 194 1,410 1,739 164
Miscellaneous - - - - 59,478 -
TOTAL REVENUES 38,792 25,066 194 207,414 1,016,566 29,115
EXPENDITURES:
General and Administrative - - - - - -
Public Safety 28,588 188,966 - - 103 -
Parks and Recreation and Arts - - - - - -
Streets - - - - - -
Interest on Debt - - - - - -
Principal on Debt - - - - - -
Capital Improvements - - - - - -
TOTAL EXPENDITURES 28,588 188,966 - - 103 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 10,204 (163,900) 194 207,414 1,016,463 29,115
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - - -
Transfers In - 163,483 - 210,000 - -
Transfers Out (10,204) - - - (789,610) (70,000)
TOTAL OTHER FINANCING
SOURCES (USES)(10,204) 163,483 - 210,000 (789,610) (70,000)
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES - (417) 194 417,414 226,853 (40,885)
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR - 417 69,580 991,220 1,133,656 77,154
FUND BALANCES (DEFICITS)
AT END OF YEAR -$ -$ 69,774$ 1,408,634$ 1,360,509$ 36,269$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
84
21 22 23 24 28 29
ESD Rexburg Legacy Building Geographic
Rexburg Revolving Rapids Flight Safety Information
Employee Loan Operations Museum Comm Dev Systems
Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ 341,742$
Grants and Contributions - - - 202,757 - 282
Fees and Charges 4,090 - 574,082 24,191 929,895 -
Interest Earned 53 45,428 211 6 - -
Miscellaneous - - - - - -
TOTAL REVENUES 4,143 45,428 574,293 226,954 929,895 342,024
EXPENDITURES:
General and Administrative - 10,158 - - 1,197,766 342,024
Public Safety 96 - - - - -
Parks and Recreation and Arts - - 494,532 107,729 - -
Streets - - - - - -
Interest on Debt - - - - - -
Principal on Debt - - - - - -
Capital Improvements - - 40,653 119,000 37,000 -
TOTAL EXPENDITURES 96 10,158 535,185 226,729 1,234,766 342,024
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 4,047 35,270 39,108 225 (304,871) -
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - - -
Transfers In - - 75,000 15,000 354,284 -
Transfers Out - (20,000) - - - -
TOTAL OTHER FINANCING
SOURCES (USES)- (20,000) 75,000 15,000 354,284 -
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES 4,047 15,270 114,108 15,225 49,413 -
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR 21,163 1,408,097 98,564 69,163 1,323,140 -
FUND BALANCES (DEFICITS)
AT END OF YEAR 25,210$ 1,423,367$ 212,672$ 84,388$ 1,372,553$ -$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
85
32 33 36 37 38 39
Joint City Hall ESD Parks Trails of
Police Street Arts Paramedic Impact Madison
Building Capital Impact Fee Promulgation Care Unit Fee County
Reserve Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$
Grants and Contributions - - - - - 139,778
Fees and Charges - 165,550 48,281 1,282,768 204,967 -
Interest Earned - - 5 - 486 -
Miscellaneous - - - - - -
TOTAL REVENUES - 165,550 48,286 1,282,768 205,453 139,778
EXPENDITURES:
General and Administrative - - - - - -
Public Safety - - - 1,121,834 - -
Parks and Recreation and Arts - - - - 7,769 -
Streets - - - - - -
Interest on Debt - - - - - -
Principal on Debt - - - - - -
Capital Improvements - - - - 59,153 141,593
TOTAL EXPENDITURES - - - 1,121,834 66,922 141,593
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 165,550 48,286 160,934 138,531 (1,815)
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - - -
Transfers In 400,000 - - - - 55,000
Transfers Out - - (15,754) - (30,000) -
TOTAL OTHER FINANCING
SOURCES (USES)400,000 - (15,754) - (30,000) 55,000
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES 400,000 165,550 32,532 160,934 108,531 53,185
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR - 1,645,147 70,286 77,051 147,713 102,508
FUND BALANCES (DEFICITS)
AT END OF YEAR 400,000$ 1,810,697$ 102,818$ 237,985$ 256,244$ 155,693$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
86
40 41 45 47 48
Mayor's
Youth
Romance Riverside Advisory Airport Airport
Theatre Park Board Operation Construction
Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$
Grants and Contributions 41,839 180,791 - 49,400 5,785
Fees and Charges 1,447 - 56 25,552 -
Interest Earned - - - - 46
Miscellaneous - - - - -
TOTAL REVENUES 43,286 180,791 56 74,952 5,831
EXPENDITURES:
General and Administrative - - 320 64,723 -
Public Safety - - - - -
Parks and Recreation and Arts 56,354 4,099 - - -
Streets - - - - -
Interest on Debt - - - - -
Principal on Debt - - - - -
Capital Improvements 297,863 848,170 - 21,070 22,738
TOTAL EXPENDITURES 354,217 852,269 320 85,793 22,738
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (310,931) (671,478) (264) (10,841) (16,907)
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - -
Transfers In 310,931 529,000 (7,793) 6,400 13,021
Transfers Out - - - - -
TOTAL OTHER FINANCING
SOURCES (USES)310,931 529,000 (7,793) 6,400 13,021
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES - (142,478) (8,057) (4,441) (3,886)
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR - 476,388 8,057 95 117,624
FUND BALANCES (DEFICITS)
AT END OF YEAR -$ 333,910$ -$ (4,346)$ 113,738$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
87
49 50 51 53-58 59-79
Golf Golf
Airport Course Course LID LID Debt
Reserve Operations Construction Construction Service
Fund Fund Fund Funds Funds
REVENUES:
Taxes -$ -$ -$ -$ -$
Grants and Contributions - 151,025 25,000 - -
Fees and Charges - 1,034,434 - - 187,386
Interest Earned 1,951 - 400 - 26,571
Miscellaneous - 1,189 - - -
TOTAL REVENUES 1,951 1,186,648 25,400 - 213,957
EXPENDITURES:
General and Administrative - - - 1,720,530
Public Safety - - - - -
Parks and Recreation and Arts - 901,433 - - -
Streets - - - - -
Interest on Debt - - 4,138 - -
Principal on Debt - - 45,962 - -
Capital Improvements - 215,511 - 857,378 -
TOTAL EXPENDITURES - 1,116,944 50,100 2,577,908 -
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,951 69,704 (24,700) (2,577,908) 213,957
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - -
Transfers In 30,000 142,700 75,100 2,577,908 16,552
Transfers Out - (50,100) - - (1,737,038)
TOTAL OTHER FINANCING
SOURCES (USES)30,000 92,600 75,100 2,577,908 (1,720,486)
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES 31,951 162,304 50,400 - (1,506,529)
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR 934,349 87,221 (417,878) (46,540) (279,981)
FUND BALANCES (DEFICITS)
AT END OF YEAR 966,300$ 249,525$ (367,478)$ (46,540)$ (1,786,510)$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
88
81 82 83 84 85
Eastern North
Rexburg MEPI Idaho 2nd East Community
Cultural Fiber Business Construc-Safety
Arts Initiative Competition tion Lighting
Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$
Grants and Contributions 35,136 - 50,000 1,394,662 -
Fees and Charges 767 - -- 248,950
Interest Earned - - - - -
Miscellaneous - - - - -
TOTAL REVENUES 35,903 - 50,000 1,394,662 248,950
EXPENDITURES:
General and Administrative -2,284 71,640 - -
Public Safety --- - -
Parks and Recreation and Arts 67,411 - - - -
Streets - - - - 69,284
Interest on Debt - - - - -
Principal on Debt - - - - -
Capital Improvements -26,095 15,000 1,394,662 17,398
TOTAL EXPENDITURES 67,411 28,379 86,640 1,394,662 86,682
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (31,508) (28,379) (36,640) - 162,268
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - - -
Transfers In 31,508 3,191,900 27,500 - -
Transfers Out - - - - -
TOTAL OTHER FINANCING
SOURCES (USES)31,508 3,191,900 27,500 - -
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES - 3,163,521 (9,140) - 162,268
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR -20,513 32,806 - 331,271
FUND BALANCES (DEFICITS)
AT END OF YEAR -$ 3,184,034$ 23,666$ -$ 493,539$
CITY OF REXBURG, IDAHO
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
See Independent Auditors’ Report
89
90 91 95
Shop City Total
Veterans with a 501c3 Nonmajor
Memorial Cop Foundation Governmental
Fund Fund Fund Funds
REVENUES:
Taxes -$ -$ -$ 1,297,091$
Grants and Contributions - 14,765 1,239 2,378,388
Fees and Charges - - - 5,272,117
Interest Earned - 95 - 78,946
Miscellaneous - - - 60,667
TOTAL REVENUES - 14,860 1,239 9,087,209
EXPENDITURES:
General and Administrative - 12,342 - 3,421,787
Public Safety - - - 1,361,011
Parks and Recreation and Arts - - - 2,073,621
Streets - - - 69,284
Interest on Debt - - - 4,071
Principal on Debt - - - 45,962
Capital Improvements - - - 4,125,687
TOTAL EXPENDITURES - 12,342 - 11,101,423
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 2,518 1,239 (2,014,214)
OTHER FINANCING SOURCES
(USES):
Proceeds from Borrowing - - - -
Transfers In (1,126) - - 8,416,802
Transfers Out - - - (2,722,706)
TOTAL OTHER FINANCING
SOURCES (USES)(1,126) - - 5,694,096
EXCESS (DEFICIENCY) OF
REVENUES AND OTHER
SOURCES OVER
EXPENDITURES
AND OTHER USES (1,126) 2,518 1,239 3,679,882
FUND BALANCES (DEFICITS)
AT BEGINNING OF YEAR 1,126 44,923 3,830 8,752,485
FUND BALANCES (DEFICITS)
AT END OF YEAR -$ 47,441$ 5,069$ # 12,432,367$
COMBINING STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2021
draft - pending final approval
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 unit, each major fund, and the
aggregate remaining fund information of City of Rexburg, Idaho, as of and for the year
ended September 30, 2021, 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 February 16, 2022.
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) as a basis for
designing 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. draft - pending final approval
CITY OF REXBURG, IDAHO
SCHEDULE FOR THE PRIOR YEAR FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED SEPTEMBER 30, 2020
See Independent Auditors’ Report
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
financial statements. 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
February 16, 2022 draft - pending final approval