HomeMy WebLinkAbout2023 Financial Statements - City of Rexburg - reissued final
BASIC FINANCIAL STATEMENTS
AND SUPPLEMENTARY INFORMATION
WITH INDEPENDENT AUDITOR’S REPORT
YEAR ENDED SEPTEMBER 30, 2023
CITY OF REXBURG, IDAHO
Table of Contents
September 30, 2023
Independent Auditor’s 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
Notes to the Financial Statements ............................................................................................ 31-66
Required Supplementary Information
Budgetary Comparison Schedule – General Fund .........................................................................67
Budgetary Comparison Schedule – Street Fund ............................................................................68
Budgetary Comparison Schedule – Emergency Services Fund .....................................................69
Budgetary Comparison Schedule – LID Debt Service Fund .........................................................70
Budgetary Comparison Schedule – Fiber Initiative Construction Fund ........................................71
Schedule of Employer’s Share of Net Pension Liability
and Employer Contribution – PERSI Base Plan ............................................................................72
CITY OF REXBURG, IDAHO
Table of Contents (Continued)
September 30, 2023
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
Other Supplementary Information
Combining Balance Sheet – Nonmajor Governmental Funds ................................................. 75-79
Combining Statement of Revenues, Expenditures and Changes
in Fund Balances – Nonmajor Governmental Funds ............................................................... 80-84
INDEPENDENT AUDITOR’S REPORT ON INTERNAL CONTROL
OVER FINANCIAL REPORTING AND ON COMPLIANCE AND
OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE
WITH GOVERNMENT AUDITING STANDARDS ............................................................ 85-86
Schedule of Findings and Responses .............................................................................................87
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490 First American Circle Rexburg, ID 83440 bus: 208‐356‐3677 fax: 208‐356‐3689 www.ruddco.com
INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and City Council
City of Rexburg, Idaho
Opinions
We have audited the accompanying financial statements of the governmental activities, the business-
type activities, the discretely presented component unit, each major fund, and the aggregate remaining
fund information of City of Rexburg, Idaho (the City), as of and for the year ended September 30,
2023, and the related notes to the financial statements, which collectively comprise the City of
Rexburg, Idaho’s basic financial statements as listed in the table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of City of
Rexburg, Idaho as of September 30, 2023, and the changes in financial position and, where applicable,
cash flows thereof for the year then ended in accordance with accounting principles generally accepted
in the United States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States
of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Statements section of our report. We are required to be independent of the City, and to meet our other
ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We
believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Other Matters
This report represents a reissuance of a previously issued report dated April 16, 2024. Significant
changes include the presentation of two additional major funds previously reported in Other
Governmental Funds, and the presentation of leases receivable and the accompanying deferred lease
revenue, which was previously reported in the government-wide financials only, and is now also
reported in the General Fund financial information. The result of these changes did not require an
adjustment to beginning fund balance or net position for the year.
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Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in
accordance with accounting principles generally accepted in the United States of America, and for the
design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
In preparing the financial statements, management is required to evaluate whether there are conditions
or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue
as a going concern for twelve months beyond the financial statement date, including any currently
known information that may raise substantial doubt shortly thereafter.
Auditor’s Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance
and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing
standards and Government Auditing Standards will always detect a material misstatement when it
exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one
resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there
is a substantial likelihood that, individually or in the aggregate, they would influence the judgement
made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government
Auditing Standards, we:
Exercise professional judgement and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due
to fraud or error, and design and perform audit procedures responsive to those risks. Such
procedures include examining, on a test basis, evidence regarding the amounts and disclosures
in the financial statements.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is
expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City of Rexburg, Idaho’s ability to continue as a going
concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters,
the planned scope and timing of the audit, significant audit findings, and certain internal control-
related matters that we identified during the audit.
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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 is the responsibility of management and, although not a
part of the basic financial statements, is required by the Governmental Accounting Standards Board,
who considers it to be an essential part of financial reporting for placing the basic financial statements
in an appropriate operational, economic, or historical context. We have applied certain limited
procedures to the required supplementary information in accordance with auditing standards generally
accepted in the United States of America, which consisted of inquiries of management about the
methods of preparing the information and comparing the information for consistency with
management’s responses to our inquiries, the basic financial statements, and other knowledge we
obtained during our audit of the basic financial statements. We do not express an opinion or provide
any assurance on the information because the limited procedures do not provide us with sufficient
evidence to express an opinion or provide any assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City’s basic financial statements. The accompanying combining and
individual nonmajor fund financial statements are presented for purposes of additional analysis and
are not a required part of the basic financial statements. Such information is the responsibility of
management and was derived from and relates directly to the underlying accounting and other records
used to prepare the basic financial statements. The 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
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
3, 2025, 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 3, 2025
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Management’s Discussion and Analysis
Matthew K. Nielson, Chief Financial Officer
Our discussion and analysis of the City of Rexburg’s financial performance provides an overview of
the City’s financial activities for the fiscal year ended September 30, 2023. Please read this in
conjunction with the City’s financial statements, which begin on page 22.
FINANCIAL HIGHLIGHTS
The assets and deferred outflows of the City exceeded its liabilities and deferred inflows at September
30, 2023 by $161,162,512.
Of this amount, $4,917,619 of unrestricted net position and $36,097,242 of restricted assets is
available to meet the City’s ongoing obligations to citizens and creditors.
The City’s net position increased $8,038,442 as a result of this year’s operations, which
includes an increase of governmental type net position by $5,161,230 and of business-type net
position by $2,877,212.
At fiscal year end, the City’s governmental funds reported combined ending fund balances of
$23,410,185, an increase of $458,821 from last year.
The General Fund Balance was $6,951,332 or 43.9% of the total General Fund Expenditures
and Fund Transfers. This leaves over a 5-month reserve in place. This is a 0.72% increase
over the prior year. Of this balance, $1,000,300 was appropriated in the budget of the following
fiscal year.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Government-wide Financial Statements are presented in a format designed to provide a broad
overview in a business-like manner. These statements include all assets and liabilities using full
accrual accounting, which is similar to accounting used by most large businesses. Full accrual
accounting reports all of the current year’s revenues and expenses when they are obligated, regardless
of whether or not cash has yet been received or paid out. You will also need to consider non-financial
factors, such as changes in the City’s property tax base and the condition of its streets, to assess its
overall health.
These statements distinguish functions that are principally supported by taxes and inter-governmental
revenues (governmental activities) from functions that are supported by user fees (business-type
activities). Governmental activities include: general administration, public safety, streets, parks,
recreation, and arts. The business-type activities include: water, wastewater (sewer), and sanitation
(garbage).
The government-wide financial statements also include separately the financial information of the
Rexburg Redevelopment Agency (Rexburg Urban Renewal Agency) as a component unit.
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The Statement of Net Position presents information on all of the City’s assets, liabilities, and deferred
inflows/outflows of the City. The difference between them is called the Net Position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position
of the City is improving or deteriorating.
The Statement of Activities defines the change in Net Position by reporting expenses of the different
functions of the City and related revenues. Here expenses are listed before revenues in order to
emphasize that in City government, revenues are generated to support the different functions and are
not the driving force, service needs or functions are. The City is not here to make a profit, unlike
business; it first identifies the service needs of its citizens and then raises the resources to meet those
needs.
Fund Financial Statements are used to maintain control over resources that have been segregated for
specific activities, objectives or as may be required by law or grant or bond agreements. Major funds
are shown in separate columns and include the General, Street, Emergency Service, LID Debt Service,
Fiber Initiative Construction, Water, Wastewater, and Sanitation Funds; all other funds are non-major
funds and are summarized in one column. Details of the non-major funds are shown under Other
Supplementary Information on pages 75-84 of this report. All of the funds of the City are also divided
into two categories, governmental or enterprise (business-type).
Governmental Funds Financial Statements focus more on current inflows, outflows and balances
(reporting more on a cash/partial accrual accounting basis instead of a full accrual basis) rather than
on long term effects on net position, such as depreciation might have, which is included in the
Government-wide Statements. The City maintains 81 active funds, 74 are governmental funds and 7
are categorized as Enterprise Funds, which are the Utility funds.
Enterprise Funds Financial Statements are used to report the business-type activities (supported by
user fees) of the City that include the Utility Funds. These funds are reported on a full accrual basis,
which is the same as the business-type accounting used in the Government-wide Financial Statements
for all funds but includes more detail here.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net Position
For the years ended September 30, 2022 and September 30, 2023, Net Position changed as follows:
Governmental
Activities
Business-type
Activities All Activities
Net Position 9/30/22 93,343,125 59,780,945 153,124,070
Increase in Net Position 5,161,230 2,877,212 8,038,442
Net Position 9/30/23 98,504,355 62,658,157 161,162,512
Percentage Increase 5.53% 4.81% 5.25%
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Large Capital Item Expenses (over $50,000) included:
SMALL LIGHTING PROJECTS 50,326$
SOUND SYSTEM-TABERNACLE 50,579$
TRAF SIG UPGRADE-7TH S/YEL 57,945$
STREET PATCHING 59,113$
BUILDING REMODEL-ROMANCE 63,649$
RESTORE TAB TOWER WINDOWS 68,663$
LIFT REPLACE-WW PUMP STAT 69,597$
BURY POWER LINE-PORTER PARK 70,341$
BASEBALL/SOFTBALL QUAD-FINAL 75,727$
FAIRWAY MOWER-GOLF 79,512$
HEAVY BRUSH RIG-FIRE 84,536$
TRAFF SIG/WIDEN 12TH W - UNIV 96,665$
CART PURCHASE-GOLF COURSE 97,200$
HYDRANTS 99,757$
TL-EXPAND PARKING LOT SOUTH 141,542$
SEAL COAT/CHIP/SLURRY-STREET 151,920$
TOWER STAIR REPAIR-REX RAPID 174,497$
METERS 179,554$
CRACKSEAL COAT/MARKING-FAA 184,200$
LID WATER PROJECTS 186,562$
FIBER INITIATIVE DESIGN 198,217$
TETON RIVER PARK DEVELOP. 229,526$
7TH S RR CROSSING UPGRADE 275,430$
ROUNDABOUT--PIONEER/7TH S 278,516$
LID WW PROJECTS 483,607$
FIRE ENGINE-FIRE 723,071$
CONTRIBUTED CAPITAL-STREETS 1,100,131$
LID STREET CONSTRUC. COSTS 1,820,185$
FIBER RING CONSTRUCTION 2,950,566$
Also, see Note #3.
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Statement of Net Position Comparison (2023 vs. 2022):
2023 2022 2023 2022 2023 2022
Current Assets 29,064,957$ 28,998,741$ 22,546,835$ 20,008,926$ 51,611,792$ 49,007,667$ 2,604,125$ 5% (1)
Capital, Noncurrent Asets &
Deferred Outflows of Resources 84,511,577 79,730,056 51,041,167 51,781,197 135,552,744 131,511,253 4,041,491 3% (2)
Total Assets 113,576,534 108,728,797 73,588,002 71,790,123 187,164,536 180,518,920 6,645,616 4%
Current Liabilities 4,540,089 5,737,685 832,812 1,833,330 5,372,901 7,571,015 2,198,114 29%
Noncurrent Liabilities and Deferred
Inflows of Resources 10,532,090 9,647,987 10,097,033 10,175,848 20,629,123 19,823,835 (805,288) -4%
Total Liabilities 15,072,179 15,385,672 10,929,845 12,009,178 26,002,024 27,394,850 1,392,826 5%
Capital Assets, Net of Related Debt 78,351,728 72,332,407 41,795,923 41,318,407 120,147,651 113,650,814 6,496,837 6% (3)
Restricted 15,235,008 14,109,344 20,862,234 18,462,538 36,097,242 32,571,882 3,525,360 11% (4)
Unrestricted 4,917,619 6,901,374 - - 4,917,619 6,901,374 (1,983,755) -29% (5)
Total Net Position 98,504,355$ 93,343,125$ 62,658,157$ 59,780,945$ 161,162,512$ 153,124,070$ 8,038,442$ 5%
(1) The cash increased significantly in the business-type funds because many budgeted construction projects were not started
(2) The governmental net capital assets increased significantyl due in large part to the fiber ring project. The deferred outflows decreased
(3) See Note 2 for Governmental. Business-type assets also increased slightly
(4) See Note 1 above
(5)
In FY2023, the City categorized a 25% minimum reserve for the general fund as committed, including additional amounts for budget encumbrances for FY24.
Percent
Change
Notes to the Statement of Net Position Comparison
All ActivitiesBusiness-type ActivitiesGovernmental Activities Favorable
(Unfavorable)
Change
Because the City has not been required by the Governmental Accounting Standards Board (GASB) to
list streets and storm sewers acquired before October 1, 2003, those items are not included in the
Beginning Net Asset amounts under Governmental Activities. All acquisitions of streets and storm
sewers on or after that date will be included. The City may decide in the future to estimate the
historical cost of those previously acquired streets and storm sewers and adjust the beginning balances
at that time.
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Changes in Long-Term Liabilities:
A summary of long-term transactions of the City for the year ended September 30, 2023, is as follows:
September 30,
2022
Obligations
Incurred
Obligations
Paid
September 30,
2023
Due Within One
Year
Governmental Activities:
Accrued compensated absences (Note 6) 448,540$ 98,789$ -$ 547,329$ 547,329$
Lease liability (Note 11) 540,477 251,342 (263,798) 528,021 189,855
Financed purchase obligaions (Note 12) 207,170 97,200 (78,205) 226,165 51,685
Contracts Payable (Note 13) 253,426 - (81,955) 171,471 84,454
Net pension liability (Note 14) 8,743,103 140,736 - 8,883,839 -
Governmental Activities Long-Term Liabilities 10,192,716$ 588,067$ (423,958)$ 10,356,825$ 873,323$
Business-type Activities:
Accrued compensated absences (Note 6) 67,811$ 4,557$ -$ 72,368$ 72,368$
Net pension liability (Note 14) 1,454,755 - (144,690) 1,310,065 -
Water DEQ loan (Note 10) 7,331,420 - (191,820) 7,139,600 194,847
Wastewater revenue bonds (Note 10) 2,350,000 - (775,000) 1,575,000 785,000
Business-type Activities Long-Term Liabilities 11,203,986$ 4,557$ (1,111,510)$ 10,097,033$ 1,052,215$
Total Long-Term Liabilities 21,396,702$ 592,624$ (1,535,468)$ 20,453,858$ 1,925,538$
There are currently no outstanding General Obligation Bonds.
Governmental Activities
The format of the Statement of Activities lists the expenses first and then the revenues with a resulting
Net Expense. The reason for this kind of format is to highlight the relative financial burden or subsidy
of each of the functions on the general revenues of the City, including property tax, after that function’s
specific revenues are subtracted. Below is a comparison of the changes in the net position from 2022
to 2023.
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Statement of Changes in Net Position Comparison (2023 vs. 2022):
2023 2022 2023 2022 2023 2022
Revenues:
Program Revenues:
Charges for Services & Taxes
General and Administrative 4,550,401$ 4,881,209$ 4,550,401$ 4,881,209$ (330,808)$ -7%
Public Safety 3,275,581 4,530,248 3,275,581 4,530,248 (1,254,667) -28% (1)
Parks, Golf, Recreation and Arts 2,547,992 2,108,202 2,547,992 2,108,202 439,790 21% (2)
Streets 5,945,274 5,378,451 5,945,274 5,378,451 566,823 11% (3)
Water 3,542,371 3,523,932 3,542,371 3,523,932 18,439 1%
Waste Water 6,471,556 6,348,341 6,471,556 6,348,341 123,215 2%
Sanitation 3,247,886 2,992,233 3,247,886 2,992,233 255,653 9%
Subtotal 16,319,248 16,898,110 13,261,813 12,864,506 29,581,061 29,762,616 (181,555) -1%
General and Administrative 311,346 291,324 311,346 291,324 20,022 7%
Public Safety 3,014,876 2,652,253 3,014,876 2,652,253 362,623 14%
Parks, Golf, Recreation and Arts 119,427 227,979 119,427 227,979 (108,552) -48%
Streets - - - - -
Water - - - -
Waste Water - 3,545 - 3,545 (3,545) -100%
Sanitation - - - -
Subtotal 3,445,649 3,171,556 - 3,545 3,445,649 3,175,101 270,548 9%
General and Administrative 1,585,845 4,213,268 1,585,845 4,213,268 (2,627,423) -62% (4)
Public Safety 679,611 101,313 679,611 101,313 578,298 571% (5)
Parks, Golf, Recreation and Arts 682,459 895,028 682,459 895,028 (212,569) -24%
Streets 4,319,572 8,152,970 4,319,572 8,152,970 (3,833,398) -47% (6)
Water 520,734 1,268,179 520,734 1,268,179 (747,445) -59% (7)
Waste Water 652,247 1,506,924 652,247 1,506,924 (854,677) -57% (8)
Sanitation - - - - -
Subtotal 7,267,487 13,362,579 1,172,981 2,775,103 8,440,468 16,137,682 (7,697,214) -48%
General Revenues:
Property Taxes Levied for General
Purposes 6,345,053 5,896,529 6,345,053 5,896,529 448,524 8%
State Taxes 3,992,847 3,821,991 3,992,847 3,821,991 170,856 4%
Investment Earnings 558,629 (309,740) 486,144 (492,277) 1,044,773 (802,017) 1,846,790 -230% (9)
Miscellaneous - - 33,377 25,527 33,377 25,527 7,850 31%
Subtotal 10,896,529 9,408,780 519,521 (466,750) 11,416,050 8,942,030 2,474,020 28%
Total Revenues 37,928,913$ 42,841,025$ 14,954,315$ 15,176,404$ 52,883,228$ 58,017,429$ (5,134,201)$ -9%
Expenses:
General and Administrative 8,956,396 6,998,988 8,956,396 6,998,988 1,957,408 28% (10)
Public Safety 12,924,779 12,152,714 12,924,779 12,152,714 772,065 6% (11)
Parks, Golf, Recreation and Arts 4,740,972 4,182,313 4,740,972 4,182,313 558,659 13% (12)
Streets 6,145,536 6,660,765 6,145,536 6,660,765 (515,229) -8% (13)
Water 3,879,723 3,770,532 3,879,723 3,770,532 109,191 3%
Waste Water 5,266,456 5,073,310 5,266,456 5,073,310 193,146 4%
Sanitation 2,930,924 2,907,643 2,930,924 2,907,643 23,281 1%
Total Expenses 32,767,683 29,994,780 12,077,103 11,751,485 44,844,786 41,746,265 3,098,521 7%
Increase in Net Positions 5,161,230$ 12,846,245$ 2,877,212$ 3,424,919$ 8,038,442$ 16,271,164$ (8,232,722)$ -51%
Net Position - Beginning 93,343,125 80,496,880 59,780,945 56,356,026 153,124,070 136,852,906 16,271,164 12%
Net Position - Ending 98,504,355$ 93,343,125$ 62,658,157$ 59,780,945$ 161,162,512$ 153,124,070$ 8,038,442$ 5%
Favorable
(Unfavorable)
Change
Percent
Change
Operating Grants and Contributions
Capital Grants and Contributions
All ActivitiesGovernmental Activities Business-type Activities
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(1)
(2)
(3)
(4)
(5)
(6)
(7)
(8)
(9)
(10)
(11)
(12)
(13)
Notes to the Statement of Changes in Net Position Comparison
Fewer street projects occurred in the current year
An increase in personnel levels occurred as well as a large cost of living adjustment in public safety was adopted
The construction of a fiber ring to connect city assets of over $4.8 million occurred in Fiscal Year 2023
Contributed assets from developers in current year dropped significantly
Golf saw a significant increase in revenues over the prior year. Other revenues increased in general as well
Wildland and equipment reimbursement decreased significantly over the prior year
The rate of return on investments increased significantly in current year over the prior year. The unrealized losses
from the prior year turned into unrealized gains in the current year on some of the longer term investments.
A large increase occurred in Cultural Arts expenses over the prior year and slight increase in golf as well, but golf
had offsetting revenues to cover these expense increases
Contributed assets from developers in current year dropped significantly
Due in large part to a decrease in contributed assets from developers
Began collecting contributions from Madison County Ambulance to invest in a new equipment replacement fund
this year
Received the second half of funding from ARPA (over $3 million) to be used for the fiber initiative project in the
prior year
Saw a significant increase in clawback fees and fuel taxes in the current year
Below are some details about some of the activities found in the Statement of Activities.
Governmental Activities
General and Administrative
(Mayor & City Council, Economic Development, Customer Services, Information Systems, Financial
Management, Human Resources, Building Maintenance, Legal, Planning and Zoning, Engineering,
GIS, Building Safety, Shop, and miscellaneous other departments).
Most of these departments’ expenditures is offset by revenues from overhead charges.
Public Safety
(Police and Emergency Services)
It is important to note that the Police and Fire functions create the most financial burden on the general
revenues, but, customarily, that is what property tax is for. To provide the most efficient and effective
funding of fire and ambulance services in Madison County, the City of Rexburg, the Madison County
Ambulance District, and the Madison County Fire Protection District have formed a joint venture
doing business as the Madison Fire Department. Madison County reimburses the City for Ambulance
expenses and its portion of shared expenses. Madison County Fire Protection District also reimburses
the City for its portion of shared expenses. In Fiscal Year 2019, a change was made on charges for
personnel in the joint venture from 50% ambulance/50% fire to 48% ambulance/52% fire, which
increased costs for the city and fire district to help alleviate funding concerns related to the ambulance
district.
Parks, Recreation and Cultural Arts
The Parks Department is mostly funded by General Revenues. Only about $39,682 was taken in as
parks reservation fees in 2023.
The Recreation Administrative expenses in the general fund are subsidized completely by General
Revenues, while the Recreation Programs are intended to be more self-sufficient. In 2023, a transfer
of $78,911 from the general fund was made to subsidize 2023 losses in the Recreation Program Fund.
2023 was the last year of our lease and operations for “The Zone Rexburg Recreation Center and
Kidsburg Play and Learning Center” that had been operating at a considerable deficit each year. We
anticipate the general fund subsidy to the Recreation Program Fund to drop considerably over the next
few years as we also raised some rates to help this fund sustain itself in the future.
11
The City hired a Golf Professional during 2021 and ended the Golf Manager contract on December
31, 2020. This decision has continued to help the City and County to better address capital needs and
reduce operating losses at the courses under this new model. The Golf Courses experienced their
highest operating revenue and patron usage of all time in the Fiscal Year 2023. Major parking lot
improvements and cart parking improvements were made in 2023 at Teton Lakes Golf Course.
In 2023 the operating fund of the water park Rexburg Rapids experienced an operating loss of $76,115.
In 2023, the thirteen-year combined operating loss reached an amount of $155,895, which means
Rexburg Rapids has operated with an average loss of $11,992 per year in its first thirteen seasons. The
City Council also transferred $65,004 from the general fund in 2023 that will be kept in reserve for
future major capital projects or repairs at the water park. The capital reserve carryover was $105,460
at fiscal year-end 2023. It is anticipated that the council will continue to transfer additional funds from
the general fund for these ongoing capital replacement expenses.
Cultural Arts includes the Tabernacle Civic Center and Museum of Rexburg, the Legacy Flight
Museum, the Romance Theater, and the Rexburg Cultural Arts fund. General revenues and taxes
heavily subsidize the Cultural Arts Funds. The Cultural Arts Funds were subsidized approximately
$543,938 in 2023 by the general fund. Major capital projects will begin to occur at the Tabernacle
over the next several years.
Streets
The Street operating fund is funded by State Highway User Fees, County Road & Bridge Property
Taxes, and other charges and is not subsidized by General Revenues, except for 100% of the franchise
fees that have been allocated to that fund. The City shifted 100% of the franchise revenues from the
general fund to streets a few years ago to address needed street repairs/replacement more quickly.
Streets had an increase in State Highway User Fees over the prior fiscal year of over $226,971. The
street operations fund transferred nearly $3 million to the Street reconstruction fund for future projects
in 2022.
Business-type Activities
Utility Funds
The Utility Departments include the Sanitation, Water, and Wastewater departments. The City
maintains separate Capital Reserve Funds for Water and Wastewater that are funded through capacity
fees and used for large construction projects to expand capacity. In 2010, the City started a project to
expand the Wastewater Treatment plant and wastewater lines to increase capacity and to address some
other maintenance concerns at the existing plant, which work was substantially finalized by the end of
2018. The improvements will help eliminate odors, help with the disposal of bio-solids, and add new
capacity as mentioned above.
To pay for the construction maintenance upgrades and expansion of the plant, the city secured a
revenue bond of 10 million dollars on December 8, 2010, which will be paid back with capital reserve
funds and increases in utility fees. The city did complete a tax-exempt current refunding (refinance of
bond) in June of 2020, and anticipates saving $309,460 in cash flow savings from interest savings
(after fees) by privately placing this debt.
The utility funds, which include three respective utility operating funds, water capital reserve, sewer
capital reserve, water capital construction, and the sewer plant construction fund, increased in cash
and short-term investments by $2,599,578, ending the year with a balance of $20,992,776, which can
be seen on the Statement of Net Position.
12
The City of Rexburg provides wastewater treatment services to the City of Sugar City and the City of
Teton at a per gallon charge that includes operating costs. Both cities have provided their share of
capital up front through the payment of capitalization fees that reserve certain amounts of capacity for
their usage. Those two cities together provide 6.05% of the total monthly-billed revenue for the
wastewater department.
Sewer rates were last increased on October 1, 2023. Water rates were last increased on October 1,
2023. Sanitation rates were last increased on October 1, 2023. Water and sewer capacity fees and
Impact Fees were last updated December 7, 2022.
The city received the final findings of the water facilities planning study at the end of 2015 and began
construction in 2016. The projected improvements required additional funding beyond that available
in our capital and operating reserve funds. The water upgrades were funded with a combination of
reserves and a loan that was finalized in 2022 from the Department of Environmental Quality (DEQ).
The loan included principal forgiveness of $2,211,300. The water project will provide needed
production, storage, and delivery capacity to meet the current water demands and future water
demands as our population grows.
In 2012 the City began to provide curb-side pickup for recycling to single family residents at no
additional cost to the customer. In 2015, the majority of single-family residents were receiving the
recycling option. The Recycling Program is a joint effort with a third-party vendor. In 2014, 2015, and
2016 it became necessary to increase the recycling contract expenses to maintain the program at its
current service level. There was no increase in recycling costs in 2017, but a substantial increase in
fees in 2018 was necessary because the vendor was no longer able to sell all recyclables and was
forced to pay tipping fees for some items, which costs were passed on to the city. This same fee from
the vendor was increased in 2022. The city is not currently seeking to add the recycling option to
commercial and multi-family users because the costs have increased, and the value of the recycled
products has dropped. When we recycle goods, it reduces the Madison County tipping fees expense
we would otherwise pay for disposing goods. The city analyzed the recycling with the oversight
committee/council members during 2022 and determined to continue to offer the service with no
changes, other than fee changes.
FUND FINANCIAL STATEMENT ANALYSIS
As noted earlier, the City of Rexburg uses fund accounting to ensure and demonstrate compliance with
legal, grant and budget requirements.
Governmental Funds
The focus of the City of Rexburg Governmental Funds is to provide information on current year cash
flows and balances. Such information is useful in assessing the City’s current year financing
requirements. In particular, unassigned fund balances that are not held for emergencies or cash flow
purposes, may serve as a useful measure of the City’s net resources available for spending at the end
of the fiscal year that could be added to expected revenues for the following fiscal year.
The General Fund Balance (see page 26) increased by $49,958 during the year.
The Street Funds Balance (see page 26) increased by $1,627,919, leaving a fund balance of $3,733,635
in the street operations, street repair, and street reconstruction funds. This carryover excludes that in
the street impact fund. The fund balance will be carried over for projects that are already planned and
budgeted for in future years.
13
The Emergency Services Fund (see page 26) is financed by three entities: the City of Rexburg (for fire
suppression services), the Madison County Fire Protection District, and the Madison County
Ambulance District. All expenditures are billed to the three entities based on the benefit received by
each. The fund balance is normally always zero because the three entities reimburse all expenditures.
The Emergency Services Fund ended the fiscal year $299,564 under budget.
The Local Improvement District (LID) Debt Service Funds (see page 26) balance increased by
$822,035 during the year. This fund balance changes each year as LID’s are paid off and new LID’s
are added.
The Fiber Initiative Construction Fund (see page 26) Balance decreased by $2,795,907. The city has
nearly completed and lit up the new Fiber Ring that goes around the city to connect city assets.
Police, Fire, Parks and Street Development Impact Fees combined were up in 2023 over 2022 and the
city collected in the amounts of $56,455, $42,844, $200,101, and $167,101 respectively, totaling
$466,501 for qualified capital improvements in those departments. It is important to illustrate the need
for impact fees by looking at the fund balances of each respective fund to determine the health of those
funds in providing the necessary capital to meet the demands of the growth in our community and its
impact on our current service levels. At the end of the fiscal year 2023, the Police Impact Fee Fund
was at $295,803. We hope to expand or purchase a larger police station in 2026 and plan to save impact
fees to help with this cost. The Fire Impact Fee Fund had a balance of $8,329, which will help fund
the future replacement of fire engines and expansion or addition of fire stations. The Parks Impact Fee
Fund balance was $420,715 and is being accumulated for future park projects. The Street Impact Fees
Fund balance available to be used for qualified street projects was $2,079,432. The city finalized the
respective Capital Improvement plans and Impact Fee Analysis for each type of impact fee in May of
2020. We also performed an update to the parks impact fees in May of 2023.
The Joint Fire Equipment Fund had a positive fund balance of $1,169,297, which comes from
contributions by the City and the Madison County Fire Protection District. These funds are for future
purchases of fire equipment and facilities.
The GIS (Geographic Information System) Fund was first created in 2004 to track the funding of the
joint City/County GIS Department on a 50/50 financing split.
The GIS (Geographic Information System) Fund was first created in 2004 to track the funding of the
joint City/County GIS Department on a 50/50 financing split. The golf courses, Teton Lakes of 27
holes and the Legacy Course of 9 holes, are jointly owned and managed by the City of Rexburg and
Madison County. Their governing boards appoint a Golf Board consisting of six citizens and a member
of each of the governing boards to act as a liaison to the Board. At the end of the fiscal year the Golf
Operating fund had a surplus of $415,963 and much of this will go towards future capital projects.
The Golf Construction fund deficit was $111,853 which is covered by a loan from the City. There was
a transfer of $84,417 to the Golf Course Construction Fund at the end of the fiscal year from the Golf
Operations Fund that was used to pay back the golf carts purchased with a loan from the city/county.
The County paid off its share of the deficit in 2023 and the city did reduce the deficit $25,000 as well,
which we plan to continue to do in the future.
Proprietary Funds
The City of Rexburg proprietary fund statements provide the same type of information found in the
government-wide statements, but in more detail. These statements include information from both the
capital reserve and operating funds.
14
Fund 25 is the Sanitation Fund, Fund 26 the Water Operations Fund, and Fund 27 the Wastewater
Operations Fund. These operating funds ended the year with net income of $2,877,212, of which
$480,373 was due to grants and contributed assets from developers.
The Utility Operations Funds increased in cash and investments by $833,083, ending the year with a
balance of $14,834,470 in cash and investments. The Sanitation Fund ended with a balance of
$2,096,603. The Water Operation Fund ended with a balance of $6,781,143. The Wastewater
Operations Fund ended with a balance of $5,956,724.
The Water Capital Reserve and Capital Construction fund ended with a combined balance of $2.51
million in cash and investments. The Wastewater Capital Reserve and Wastewater Treatment Plant
Construction fund ended with a combined balance of $3.65 million in cash and investments.
GENERAL FUND BUDGETARY HIGHLIGHTS
The City strives to maintain a total general fund committed fund balance equal to a minimum of 25%,
or greater, of general fund budgeted expenditures for necessary cash flow, for unforeseen emergencies,
and to mitigate current and future risks. At the end of 2023, the fund balance was 55.07% of the 2023
actual expenses. The city expects this fund balance to continue to decrease over the next few years as
it anticipates saving for expansion of or moving of the police station and constructing a new municipal
building along with some other large capital expenditures for our historical buildings. A large portion
of this carryover is also typically used as a fund balance carryover in the budgeted revenues to balance
the budget from year to year. Included in the fund balance is the savings/reserve for the health/dental
insurance. The City plans to move that out into a trust fund once the decision is made to move forward
with a self-insured plan at some future date.
Revenues
Total Budget of Revenues 17,313,700$
Budgeted Cash Carryover (Deficit) 1,113,400
Budgeted Revenues Expected Net of Carryover 16,200,300
Actual Revenues Received (including transfers in) 15,883,749
Surplus (Deficit) of Revenues vs. Budget (1,429,951)
Expenditures
Total Budget of Expenditures 17,313,700
Actual Expenditures (including transfers out) 15,833,791
Under (Over) Budget 1,479,909
Excess (Defiiciency) of Revenues over Expenditures 49,958
Fund Balance
Beginning Fund Balance 6,901,374
Ending Fund Balance 6,951,332$
15
However, some individual accounts or departments in the general fund showed variations that are
notable ($60,000 or more):
Significant Revenues Overage (Shortage)
Sales Tax 454,748$
Sale of Assets (99,828)$
Investments/Unrealized Gain (Loss)455,514$
Significant Expenditures Under (Over) Budget
IT 72,899$
Police Patrol 96,864$
Police Admin 305,246$
Parks 134,374$
Transfer to Tabernacle 506,101$
Transfer to Joint Fire Operations 81,713$
Transfer to Fiber Reserve 316,158$
STREET FUND BUDGETARY HIGHLIGHTS
Revenues
Total Budget of Revenues 11,210,600$
Actual Revenues Received (including transfers in) 11,018,136
Surplus (Deficit) of Revenues vs. Budget (192,464)
Expenditures
Total Budget of Expenditures 11,210,600
Actual Expenditures (including transfers out)9,390,217
Under (Over) Budget 1,820,383
Excess (Defiiciency) of Revenues over Expenditures 1,627,919
Fund Balance
Beginning Fund Balance 2,105,716
Ending Fund Balance 3,733,635$
16
However, some individual accounts showed variations that are notable ($60,000 or more):
Significant Revenues Overage (Shortage)
Property Tax-County Road and Bridge (164,405)$
Franchise Fees 181,740$
State Highway User Funds 220,904$
Federal Grant (622,254)$
Street Clawback Fees 145,280$
Sale of Assets (350,000)$
Transfer in-Street Operations to Street Repair Fund 745,353$
Contributions-New Street Construction Fund 600,131$
Urban Renewal Reimbursements 548,771$
Significant Expenditures Under (Over) Budget
68,103$
(745,353)$
Street Sweeper 300,000$
710,785$
Seal Coat/Chip or Slurry Seal 68,079$
East Parkway 739,754$
226,054$
(600,131)$
Storm Drain Replacement 100,000$
103,335$
224,721$
Shop Overhead Expenses Street Operations
New Sidewalk-7th S-US 20 to 12th W
Traffic Signal/Widen 12th W-University
Contributed Capital (new finished streets)
Roundabout-Pioneer/7th and RR Crossing Upgrade-
URA
Fund Transfer from Street Replacement to LID
construction
Fund Transfer from Street Operations to Street
Repair Fund
EMERGENCY SERVICES DEPARTMENT FUND BUDGETARY HIGHLIGHTS
The City of Rexburg, through an agreement with Madison County Fire Protection District and the
Madison Ambulance District, is responsible for the administration and accounting of the Emergency
Services Department (ESD) operations. A governing board made up of one elected official from each
entity and a doctor, sets policies as needed for the department.
ESD Fund Revenues are almost all provided by the sharing of costs by three entities: the City of
Rexburg and the Madison Fire Protection District through an Operating Transfer in, and the Madison
Ambulance District through warrants paid to the City. Costs are reimbursed based on benefits received
by the three entities. The ESD Department utilized ambulance and fire equipment on site at various
wild land fires throughout the state and nation. For their work, the respective entity that supplied the
equipment received reimbursement revenues that helped reduce the shared costs needed by the three
entities that fund the ESD operations. They also sent out personnel to help in the wild land fire efforts
and received reimbursement revenues to cover the wages and benefits paid to the employees.
The Madison Ambulance District paid approximately 46% of the costs during the past fiscal year. The
City and the Madison Fire District each paid about 35% and 19% respectively.
17
ESD Operating Fund Revenues and Expenses were both approximately $299,564 under budget – both
because this fund is usually zeroed out at the end of the year and any savings or overruns are shared
by the three entities immediately. The City’s share of the net expenses was $1,491,188 of a $1,572,900
budget, or $81,712 under budget.
LID DEBT SERVICE FUNDS BUDGETARY HIGHLIGHTS
Large payoffs occurred in Fund 60 and 61 for LID 50 and 51 respectively as those LID’s were
finalized and several property owners chose to prepay the LID improvements rather than finance
them over 10 years.
FIBER INITIATIVE CONSTRUCTION FUND BUDGETARY HIGHLIGHTS
The city had received the ARPA federal grants monies in the prior fiscal year, so our actual revenues
were much lower than budgeted. We anticipated finalizing the fiber ring and lighting it up in Fiscal
Year 2023 but will not complete that until the end of Calendar Year 2023. We do anticipate carrying
over some funds to finalize the ring and to add equipment to connect all city assets in the next fiscal
year.
18
REXBURG URBAN RENEWAL AGENCY
Separately issued financial statements for the Rexburg Urban Renewal Agency, a component unit of
the City of Rexburg is available at the City offices.
The Actual Total Expense pie chart shows the relative size of the departments or categories of
expenses. Each Total Expense category includes both operating expense and capital purchase expense.
Operating Expense does not typically include capital expense and is the amount needed to fund the
day-to-day operations of the City. Capital Expense is usually defined as an expense if the benefit or
item purchased is expected to last two or more years and is depreciated over multiple years as
determined by the city’s depreciation schedule.
Construction is generally a large piece of the pie each year and is capital in nature, but varies widely
from year to year in amount, due to the available funding and the needs of that year. Fund Transfers
are made between different funds to pay for charges for services given or to fund the deficit position
of funds with a transfer from the General Fund.
The total expenses in 2023 decreased by approximately 7% or $4.42 million dollars compared to 2022.
This was due in large part to fewer street construction projects/costs.
19
The Actual Total Revenue pie chart shows the relative size of the categories of revenue by source.
Total Revenue categories include both operating revenue and revenue that is restricted to capital
purchases. Operating Revenue does not include revenue reserved for capital purchases and is the
amount needed to fund the day-to-day operations of the City. Capital Revenue is usually defined as
revenue reserved to be used on purchases that are expected to last two or more years.
Fund Transfers and Interfund Charges are made between different funds to pay for charges for services
given or to fund the deficit position of a particular fund with a transfer from the General or another
Fund. LID Assessments are revenues charged against a particular benefited property for improvements
made by the City through a Local Improvement District (LID). State Taxes include Sales Tax, Gas
Tax, and Liquor Tax Revenues that are distributed to the Cities by the State of Idaho. It is relevant to
point out that Property Tax, however important it is to the financial well-being of the City, is a
relatively small part of the Total Revenue Budget. Road & Bridge Tax is property taxes levied by the
County for their Road & Bridge Fund that are turned over by state law to the City. The amount of tax
transferred is equal to half of the Road & Bridge Tax collected on properties within the City limits.
The Road & Bridge Tax has decreased steadily for several years.
The total revenues in 2023 decreased by 9.7% or over $6.7 million dollars compared to 2022. Federal
Grants also dropped significantly in 2023 by more than $3.55 million. Investment earnings was up
considerably in 2023.
20
The Actual Operating Expense pie chart shows the relative size of the departments or categories of
operating expenses. Operating Expense does not typically include capital expense funds and is the
amount needed to fund the day-to-day operations of the City.
Public Safety expenses, which includes the Police, Fire, and Ambulance Departments, comprise about
31% of the operating expenses. The Utility Funds, which include the Wastewater, Sanitation, and
Water Departments, account for approximately 33% of the operating expenses. Street operations
accounted for 8%, leaving approximately 28% for the rest of the departments or categories.
The operating expenses increased by approximately $2.53 million or 7% as compared to 2022, with
the largest increase coming from fiber operations. Police expenses increased approximately $463,000
or 8%. Recreation increased $174,000 or 16% and Cultural arts $100,000 or 22%. The utility operating
funds combined had an increase of $559,000. All other departments had less significant increases or
decreases.
21
The Actual Operating Revenue pie chart shows the relative size of the categories of operating
revenues. Operating Revenue does not include money meant for capital expenses and is the amount
provided to fund the day-to-day operations of the City.
Utility Charges, which include the Wastewater, Sanitation, and Water user fees, are about 30% of the
total. Property Tax, State Taxes (with the exception of the gas tax), and Interfund charges for services
(Overhead Transfers) are general-purpose revenues that can be used at the City Council’s discretion.
Many of the other categories specified are each for a special purpose and must be spent according to
state law or agreements signed.
The operating revenues increased by approximately 1% or $ 346,000 as compared to 2022, with the
largest increase occurring in the utility charges, State Taxes, and Property Taxes. Miscellaneous
revenues saw a decrease in revenue of over $1.1 million primarily because of a large drop in Wildland
Revenues in 2023 with fewer deployments. The Golf revenues went up substantially in 2023 as we
had one of our busiest and most successful financial seasons ever. The other operating increases and
decreases were less dramatic than these areas.
BASIC FINANCIAL STATEMENTS
The Accompanying Notes are an Integral Part of the Financial Statements
22
Component Unit
(Rexburg
Governmental Business-type Urban Renewal
Activities Activities Total Agency)
ASSETS
Current Assets:
Cash and Investments 21,248,896$ 20,992,776$ 42,241,672$ 7,717,360$
Receivables 7,721,930 1,526,123 9,248,053 -
Accrued Interest Receivable-Leases 189 189 -
Short Term Lease Receivable 40,971 40,971 -
Supplies inventory 52,971 27,936 80,907 -
Total Current Assets 29,064,957 22,546,835 51,611,792 7,717,360
Noncurrent Assets:
Revolving Loan Receivable 1,114,679 - 1,114,679 -
Long Term Lease Receivable 143,562 - 143,562 -
Capital Assets:
Capital Assets, net 78,259,532 50,510,522 128,770,054 1,986,562
Right of Use - Lease, net 679,180 - 679,180 -
Right of Use - SBITAs, net 338,673 - 338,673 -
Net Capital Assets 79,277,385 50,510,522 129,787,907 1,986,562
Total Noncurrent Assets 80,535,626 50,510,522 131,046,148 1,986,562
TOTAL ASSETS 109,600,583 73,057,357 182,657,940 9,703,922
Deferred Outflows - Related to Pensions 3,975,951 530,645 4,506,596 -
TOTAL ASSETS AND DEFERRED OUTFLOWS 113,576,534 73,588,002 187,164,536 9,703,922
LIABILITIES:
Current Liabilities:
Accounts Payable 4,015,314 506,521 4,521,835 1,430,086
Accrued Payroll Liability 420,078 62,374 482,452 -
Accrued Interest Payable 11,644 4,872 16,516 -
Deferred Revenue Payable (85) 35,492 35,407 -
Other 93,138 223,553 316,691 -
Total Current Liabilities 4,540,089 832,812 5,372,901 1,430,086
Noncurrent Liabilities:
Due in less than one year
Accrued Compensated Absences 547,329 72,368 619,697 -
Lease Liability 189,855 - 189,855 -
Financed purchase 51,685 51,685 -
Contracts Payable 84,454 84,454 -
Long-term Debt - 979,847 979,847 186,400
Due in more than one year
Lease Liability 338,166 - 338,166 -
Financed purchase 174,480 174,480 -
Contracts Payable 87,017 87,017 -
Long-term Obligations - 7,734,753 7,734,753 2,623,552
Net Pension Liability 8,883,839 1,310,065 10,193,904 -
Total Noncurrent Liabilities 10,356,825 10,097,033 20,453,858 2,809,952
TOTAL LIABILITIES 14,896,914 10,929,845 25,826,759 4,240,038
DEFERRED INFLOWS OF RESOURCES
Landlord Leases Deferred Inflows 175,265 - 175,265 -
TOTAL LIABILITIES AND DEFERRED INFLOWS 15,072,179 10,929,845 26,002,024 4,240,038
NET POSITION (DEFICIT):
Invested In Capital Assets,
Net of Related Debt 78,351,728 41,795,923 120,147,651 1,986,562
Restricted for:
Capital projects 13,094,635 5,466,627 18,561,262 3,153,474
Debt service - 979,847 979,847 227,220
Intergovernmental Agreement 2,140,373 2,140,373
Operations - 14,415,760 14,415,760 96,628
Unrestricted 4,917,619 4,917,619
TOTAL NET POSITION 98,504,355$ 62,658,157$ 161,162,512$ 5,463,884$
CITY OF REXBURG, IDAHO
STATEMENT OF NET POSITION
GOVERNMENT WIDE
September 30, 2023
Primary Government
The Accompanying Notes are an Integral Part of the Financial Statements
23
Charges Operating Capital
for Services Grants and Grants and Governmental Business-Type Component
FUNCTIONS/PROGRAMS Expenses and Taxes Contributions Contributions Activities Activities Total Unit
PRIMARY GOVERNMENT:
GOVERNMENTAL ACTIVITIES:
General and Administrative 8,956,396$ 4,550,401$ 311,346$ 1,585,845$ (2,508,804)$ -$ (2,508,804)$ -$
Public Safety 12,924,779 3,275,581 3,014,876 679,611 (5,954,711) - (5,954,711) -
Parks, Golf, Recreation and Arts 4,740,972 2,547,992 119,427 682,459 (1,391,094) - (1,391,094) -
Streets 6,145,536 5,945,274 4,319,572 4,119,310 - 4,119,310 -
Total Governmental Activities 32,767,683 16,319,248 3,445,649 7,267,487 (5,735,299) - (5,735,299) -
BUSINESS-TYPE ACTIVITIES
Water 3,879,723 3,542,371 - 520,734 - 183,382 183,382 -
Waste Water 5,266,456 6,471,556 - 652,247 - 1,857,347 1,857,347 -
Sanitation 2,930,924 3,247,886 - - 316,962 316,962 -
Total Business-type Activities 12,077,103 13,261,813 - 1,172,981 - 2,357,691 2,357,691 -
TOTAL PRIMARY GOVERNMENT 44,844,786$ 29,581,061$ 3,445,649$ 8,440,468$ (5,735,299) 2,357,691 (3,377,608) -
COMPONENT UNIT
Rexburg Urban Renewal District 2,932,929$ 43,438$ -$ -$ - - - (2,889,491)
GENERAL REVENUES:
Property Taxes Levied for General Purposes 6,345,053 - 6,345,053 2,049,242
State Taxes 3,992,847 - 3,992,847 -
Investment Earnings 558,629 486,144 1,044,773 293,356
Miscellaneous - 33,377 33,377 33,369
Total General Revenue 10,896,529 519,521 11,416,050 2,375,967
Change in Net Position 5,161,230 2,877,212 8,038,442 (513,524)
NET POSITION - BEGINNING BALANCE 93,343,125 59,780,945 153,124,070$ 5,977,408
NET POSITION - ENDING BALANCE 98,504,355$ 62,658,157$ 161,162,512$ 5,463,884$
CITY OF REXBURG, IDAHO
STATEMENT OF ACTIVITIES
GOVERNMENT WIDE
For the year ended September 30, 2023
Program Revenues Net (Expense) Revenue and Changes in Net Position
The Accompanying Notes are an Integral Part of the Financial Statements
24
Emergency LID Debt Fiber Initiative Other Total
General Street Service Service Construction Governmental Governmental
Fund Fund Fund Funds Fund Funds Funds
ASSETS
Cash and Investments 5,526,888$ 1,530,928$ -$ -$ 1,505,228$ 12,685,851$ 21,248,895$
Receivables 1,270,973 2,346,584 764,585 2,070,043 - 2,384,424 8,836,609
Accrued Interest Receivable-Leases 189 - - - - 189
Lease Receivable 184,534 - - - - - 184,534
Supplies Inventory 52,971 - - - - - 52,971
Due from Other Funds 2,749,814 - - - - - 2,749,814
TOTAL ASSETS 9,785,369$ 3,877,512$ 764,585$ 2,070,043$ 1,505,228$ 15,070,275$ 33,073,012$
LIABILITIES AND FUND BALANCES
LIABILITIES:
Accounts Payable 2,398,922$ 115,079$ 129,135$ -$ 374,581$ 997,597$ 4,015,314$
Accrued Payroll Liability 211,536 24,798 98,791 - - 84,954 420,079
Due to Other Funds - - 479,279 1,743,439 - 527,094 2,749,812
Other 8,970 4,000 57,380 - - 22,703 93,053
TOTAL LIABILITIES 2,619,428 143,877 764,585 1,743,439 374,581 1,632,348 7,278,258
DEFERRED INFLOWS OF RESOURCES
Landlord Leases Deferred Inflows 175,265 - - - - - 175,265
Unavailable revenues 39,344 - - 2,158,155 - 11,802 2,209,301
TOTAL DEFERRED INFLOWS OF RESOURCE 214,609 - - 2,158,155 - 11,802 2,384,566
FUND BALANCES:
Nonspendable 52,971 - - - - - 52,971
Restricted - 3,733,635 - - - 7,987,575 11,721,210
Committed 5,770,975 - - - 1,130,647 6,261,049 13,162,671
Unassigned 1,127,386 - - (1,831,551) - (822,499) (1,526,664)
TOTAL FUND BALANCES 6,951,332 3,733,635 - (1,831,551) 1,130,647 13,426,125 23,410,188
TOTAL LIABILITIES, DEFERRED INFLOWS
OF RESOURCES, AND FUND BALANCES 9,785,369$ 3,877,512$ 764,585$ 2,070,043$ 1,505,228$ 15,070,275$ 33,073,012$
CITY OF REXBURG, IDAHO
BALANCE SHEET
GOVERNMENTAL FUNDS
September 30, 2023
The Accompanying Notes are an Integral Part of the Financial Statements
25
Amounts reported for governmental activities in the statement of net position are different
because:
TOTAL FUND BALANCE - GOVERNMENTAL FUNDS 23,410,188$
Capital assets used in governmental activities are not financial
resources and, therefore, are not reported in the funds.
Right of Use Lease Asset, net 679,180
Right of Use SBITA Asset, net 338,677
Cost of Assets 130,828,692
Accumulated Depreciation (52,569,160)
Net Cost of Assets 79,277,389
Certain receivables are not financial resources and are reported
as deferred revenues
Property tax deferred revenue 51,145
Special Assessment deferred revenue 2,158,154
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 3,975,951
Net Pension Liability (8,883,839)
Lease Liabilites (711,136)
Long-term debt (226,168)
Accrued compensated absences (547,329)
TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES 98,504,355$
September 30, 2023
CITY OF REXBURG, IDAHO
RECONCILIATION OF THE
BALANCE SHEET OF GOVERNMENTAL FUNDS
to the
TO THE STATEMENT OF NET POSITION
The Accompanying Notes are an Integral Part of the Financial Statements
26
Emergency LID Debt Fiber Initiative Other Total
General Street Service Service Construction Governmental Governmental
Fund Fund Fund Funds Fund Funds Funds
REVENUES:
Taxes 10,286,755$ 2,831,499$ -$ -$-$ 1,081,481$ 14,199,735$
Grants and Contributions 628,248 2,774,448 2,248,388 -1,280,956 2,437,707 9,369,747
Fees and Charges 4,360,604 2,276,634 391,479 593,489 - 5,117,816 12,740,022
Investment/Interest Income 574,892 - - 59,610 - 300,559 935,061
Miscellaneous 12,754 59,033 - - - 25,159 96,946
TOTAL REVENUES 15,863,253 7,941,614 2,639,867 653,099 1,280,956 8,962,722 37,341,511
EXPENDITURES:
Current:
General and Administrative 5,149,299 ‐ ‐ ‐ 928,080 1,755,631 7,833,010
Public Safety 6,002,162 ‐ 4,887,686 ‐ - 885,399 11,775,247
Parks and Recreation and Arts 1,143,823 ‐ ‐ ‐ ‐ 2,627,851 3,771,674
Streets ‐ 2,159,879 ‐ ‐ ‐ 1,427,080 3,586,959
Debt Service:
Interest on Bonds and Other Debt - - - - - 6,215 6,215
Principal on Bonds and Other Debt - - - - - 78,202 78,202
Capital Improvements:
General and Administrative 150,215 - - - 3,148,783 285,371 3,584,369
Public Safety 63,227 - 39,250 - - 860,694 963,171
Parks and Recreation and Arts 114,006 - -- - 1,188,183 1,302,189
Streets 2,164,670 - - - 1,914,183 4,078,853
TOTAL EXPENDITURES 12,622,732 4,324,549 4,926,936 -4,076,863 11,028,809 36,979,889
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 3,240,521 3,617,065 (2,287,069) 653,099 (2,795,907) (2,066,087) 361,622
OTHER FINANCING SOURCES (USES):
Proceeds From Borrowing - - - - - 97,200 97,200
Operating Transfers In 20,496 3,076,522 2,287,069 168,936 - 3,952,167 9,505,190
Operating Transfers Out (3,211,059) (5,065,668) - - - (1,228,464) (9,505,191)
TOTAL OTHER FINANCING
SOURCES (USES)(3,190,563) (1,989,146) 2,287,069 168,936 - 2,820,903 97,199
EXCESS OF REVENUES AND OTHER
SOURCES OVER (UNDER)
EXPENDITURES AND OTHER USES 49,958 1,627,919 -822,035 (2,795,907) 754,816 458,821
FUND BALANCE, BEGINNING OF YEAR 6,901,374 2,105,716 -(2,653,586) 3,926,554 12,671,306 22,951,364
FUND BALANCE, END OF YEAR 6,951,332$ 3,733,635$ -$ (1,831,551)$ 1,130,647$ 13,426,122$ 23,410,185$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended September 30, 2023
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 458,821$
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, assets with an initial, individual cost of
more than $5,000 are capitalized and the cost is allocated over their
estimated useful lives and reported as depreciation expense. This is
the amount by which capital outlays are reduced by depreciation in the
current period:
Capital expenditures capitalized as fixed assets 9,856,939
Depreciation expense (4,723,260)
Basis in Assets disposed of (5,719)
Principal Payments on Leases 423,959
Revenues in the Statement of Activities that do not provide current
financial resources are not reported as revenues in the funds:
Special assessments levied 210,576
Changes in Deferred Revenue not in Statement of Activites:
Special assessment deferred revenue (77,153)
Property tax deferrals 91,856
Recreation and cultural arts revenue deferral 16,071
Compensated absences accrual adjustment (98,788)
Net Pension (Expense) Revenue (1,294,145)
Streets Adjustment 302,073
CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 5,161,230$
For the year ended September 30, 2023
CITY OF REXBURG, IDAHO
RECONCILIATION OF THE
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
to the
STATEMENT OF ACTIVITIES
The Accompanying Notes are an Integral Part of the Financial Statements
28
Sanitation Water Wastewater Total
ASSETS
Current Assets:
Cash and Investments 2,096,603$ 9,289,937$ 9,606,236$ 20,992,776$
Receivables 328,760 500,506 696,855 1,526,121
Supplies Inventory 27,935 - - 27,935
Total Current Assets 2,453,298 9,790,443 10,303,091 22,546,832
Noncurrent Assets:
Capital Assets:
Capital Assets 3,310,826 31,766,082 47,932,600 83,009,508
Accumulated Depreciation (2,254,402) (10,103,178) (20,141,406) (32,498,986)
Total Noncurrent Assets 1,056,424 21,662,904 27,791,194 50,510,522
TOTAL ASSETS 3,509,722 31,453,347 38,094,285 73,057,354
DEFERRED OUTFLOWS OF RESOURCES
Pension related 127,493 182,194 220,958 530,645
TOTAL ASSETS AND DEFERRED
OUTFLOWS OF RESOURCES 3,637,215$ 31,635,541$ 38,315,243$ 73,587,999$
LIABILITIES:
Current Liabilities:
Accounts Payable 116,639$ 162,960$ 226,922$ 506,521$
Accrued Compensated Absences 13,007 18,426 40,935 72,368
Accrued Payroll 10,564 23,693 28,117 62,374
Accrued Interest Payable - 4,108 764 4,872
Other 29,305 229,778 (38) 259,045
Current Portion of Long-term Obligations - 194,847 785,000 979,847
Total Current Liabilities 169,515 633,812 1,081,700 1,885,027
Noncurrent Liabilities:
Noncurrent Portion of Long-term Obligations - 6,944,753 790,000 7,734,753
Net Pension Liability 314,755 449,802 545,506 1,310,063
Total Nonurrent Liabilities 314,755 7,394,555 1,335,506 9,044,816
TOTAL LIABILITIES 484,270 8,028,367 2,417,206 10,929,843
NET POSITION
Invested in Capital Assets Net of Related Deb 1,056,424 14,523,304 26,216,194 41,795,922
Restricted for:
Capital Projects - 2,508,793 2,957,834 5,466,627
Operations 2,096,521 6,575,077 6,724,009 15,395,607
TOTAL NET POSITION 3,152,945 23,607,174 35,898,037 62,658,156
TOTAL LIABILTIES, DEFERRED INFLOWS
OF RESOURCES, AND NET POSITION 3,637,215$ 31,635,541$ 38,315,243$ 73,587,999$
CITY OF REXBURG, IDAHO
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2023
Enterprise Funds
Business-type Activities
The Accompanying Notes are an Integral Part of the Financial Statements
29
Sanitation Water Wastewater Total
OPERATING REVENUES:
Monthly Utility Services 3,236,428$ 3,441,709$ 5,594,378$ 12,272,515$
One Time Fees - 64,771 13,126 77,897
Miscellaneous 7,847 46,151 4,175 58,173
TOTAL OPERATING REVENUES 3,244,275 3,552,631 5,611,679 12,408,585
OPERATING EXPENDITURES:
Utility Expenses 2,774,220 2,922,137 3,843,203 9,539,560
Depreciation and Amortization 156,704 761,025 1,364,870 2,282,599
TOTAL OPERATING EXPENDITURES 2,930,924 3,683,162 5,208,073 11,822,159
OPERATING INCOME 313,351 (130,531) 403,606 586,426
NON-OPERATING REVENUES / EXPENSES
Grants and Contributions/Sale of Capacity - 270,901 1,240,635 1,511,536
Contributed Capital - 217,575 226,136 443,711
Net Proceeds from Capital Asset Sales - (70,703) 11,101 (59,602)
Investment Earnings 38,858 233,791 225,237 497,886
Unrealized Gain (Loss) - (5,878) 9,182 3,304
Interest Expense - (79,021) (27,028) (106,049)
TOTAL NON-OPERATING REVENUES
/EXPENSES 38,858 566,665 1,685,263 2,290,786
CHANGE IN NET POSITION 352,209 436,134 2,088,869 2,877,212
FUND BALANCE, BEGINNING OF YEAR 2,800,736 23,171,040 33,809,168 59,780,944
FUND BALANCE, END OF YEAR 3,152,945$ 23,607,174$ 35,898,037$ 62,658,156$
Enterprise Funds
Business-type Activities
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
For the year ended September 30, 2023
The Accompanying Notes are an Integral Part of the Financial Statements
30
CITY OF REXBURG
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
Sanitation Water Wastewater Totals
CASH FLOWS FROM OPERATING ACTIVITIES:
Receipts from Customers 3,157,902$ 3,486,425$ 5,525,370$ 12,169,697$
Payments to Suppliers (1,459,967) (839,817) (1,263,355) (3,563,139)
Payments to Employees (500,600) (1,049,004) (1,300,859) (2,850,464)
Internal Activity - Payments to Other Funds for Services (729,223) (864,448) (1,240,465) (2,834,135)
Other Payments/Interest Payments - (286) (2,726) (3,012)
NET CASH PROVIDED BY OPERATING ACTIVITIES 468,112 732,870 1,717,965 2,918,947
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES:
Borrowing -
Sale of Capacity and Contributions - 270,901 1,237,869 1,508,770
Acquisitions of Property, Plant and Equipment (41,003) (912,289) (979,114) (1,932,406)
Increase (Decrease) in Accounts Payable on Capital - (70,869) 15,016 (55,852)
(Increase) Decrease in Accounts Receivable for Capital - (16,537) 198,604 182,067
Proceeds from Sale of Assets - 79,350 - 79,350
Interest Income 38,857 234,601 225,237 498,695
Principal Payments on Revenue Bonds - (191,820) (775,000) (966,820)
Interest Payments - (79,021) (27,028) (106,049)
Increase (Decrease) in Interest Payable for Capital - (110) - (110)
Unrealized Gain (Loss) on Investments - (6,688) 9,183 2,494
Contributed Capital - 217,575 252,918 470,493
NET CASH USED BY CAPITAL AND
RELATED FINANCING ACTIVITIES (2,146) (474,908) 157,686 (319,369)
NET INCREASE (DECREASE) IN CASH AND INVESTMENTS 465,966 257,962 1,875,651 2,599,579
CASH AND INVESTMENTS AT BEGINNING OF YEAR 1,630,637 9,031,975 7,730,585 18,393,197
CASH AND INVESTMENTS AT END OF THE YEAR 2,096,603$ 9,289,937$ 9,606,236$ 20,992,776$
RECONCILIATION OF OPERATING INCOME TO NET CASH PROVIDED
(USED) BY OPERATING ACTIVITIES:
Operating Income (Loss) 313,351$ (130,531)$ 406,372$ 589,192$
Adjustments to Reconcile Operating Income to
Net Cash Provided by Operating Activities:
Change to beginning payroll accrual -
Depreciation and Amortization 156,704 761,025 1,322,795 2,240,524
Net Pension Expense (Revenue) 30,216 48,532 20,794 99,542
Changes in Assets and Liabilities:
(Increase) Decrease in accounts receivable (86,442) 13,842 (80,012) (152,612)
(Increase) Decrease in inventory 32,215 - - 32,215
Increase (Decrease) in payroll accrual 1,962 6,825 6,982 15,770
Increase (Decrease) in accounts payable 16,860 54,059 34,048 104,967
Increase (Decrease) in accrued compensated absences 3,177 (5,605) 6,985 4,557
Increase (Decrease) in deposits payable 70 (15,278) - (15,208)
NET CASH PROVIDED BY OPERATING ACTIVITIES 468,112$ 732,870$ 1,717,966$ 2,918,947$
September 30, 2023
Business-Type Activities -
Enterprise Funds
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
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.
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.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
32
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund financial
statements. Revenues are recorded when earned and expenses are recorded when a liability is
incurred, regardless of the timing of related cash flows. Property taxes are recognized as revenues
in the year for which they are levied. Grants and similar items are recognized as revenue as soon
as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources
measurement focus and the modified accrual basis of accounting. Revenues are recognized as
soon as they are both measurable and available. Revenues are considered to be available when
they are collectible within the current period or soon enough thereafter to pay liabilities of the
current period. For this purpose, the City considers revenues to be available if they are collected
within 60 days of the end of the current fiscal period. Expenditures generally are recorded when
a liability is incurred, as under accrual accounting. However, debt service expenditures, as well
as expenditures related to compensated absences, early retirement, arbitrage rebates, and post-
employment healthcare benefits, are recorded only when payment is due.
Property taxes, franchise taxes, licenses and interest associated with the current fiscal period are
all considered to be susceptible to accrual and have been recognized as revenues of the current
fiscal period. Only the portion of special assessments receivable due within the current fiscal
period is considered to be accrued as revenue of the current period. All other revenue items are
considered to be measurable and available only when the City receives cash.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It is used for all financial resources of
the general government, except those required to be accounted for
in another fund.
The Street Fund accounts for the resources accumulated and payments made for street and
bridge maintenance, street lighting, traffic engineering, snow removal, street sweeping and
storm sewer maintenance. Street Fund resources are restricted by law to be used only to benefit
city streets.
The Emergency Services Fund accounts for the operations of the fire and ambulance service
in and surrounding the City.
The LID Debt Service Fund is a consolidation on the financial statements of fund 59-79 and
accounts for the debt service actions related to street, sidewalk, curb and gutter, and other
improvements made by the city on behalf of property owners that is paid back to the city with
interest over a period of time that is generally 10 years.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
33
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The Fiber Initiative Construction Fund was a fund established to build a fiber ring around the
city and to connect city assets. The improvements constructed under this fund have been
funded primarily by federal grants and other contributions. We anticipate this fund to close
out in the next year.
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.
Component Unit
Component units are organizations which are legally separated from the City, which are financially
accountable to the City, or their relationship with the City are such that exclusion would cause the
City’s financial statements to be misleading or incomplete. Discretely presented component units
are reported in a separate column to emphasize that they are legally separate from the primary
government and are governed by separate boards. The City has one discretely presented
component unit. A brief description of the discretely presented component unit follows:
Rexburg Urban Renewal Agency – was organized to make improvements to infrastructure in
specific areas of the City. It derives its revenues from the incremental tax increases that all
taxing districts forfeit from increase in value of the land and buildings in the new construction
areas.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989,
generally are followed in both government-wide and proprietary fund financial statements to the
extent that those standards do not conflict with or contradict guidance of the Governmental
Accounting Standards Board. Governments also have the option of following subsequent private-
sector guidance for their business-type activities, subject to this same limitation. The City has
elected not to follow subsequent private-sector guidance.
When both restricted and unrestricted resources are available for use, it is the government’s policy
to use restricted resources first, then unrestricted resources as they are needed. The City considers
restricted amounts to have been spent first when an expenditure is incurred for purposes for which
multiple classifications may be included in a fund balance. For example, restricted amounts are
used first, followed by committed, assigned, and unassigned amounts in that order, for purposes
of reporting fund balance.
As a general rule the effect of interfund activity has been eliminated from the government-wide
financial statements.
Amounts reported as program revenues include 1) charges to customers or applicants for goods,
services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and
contributions, including special assessments. Internally dedicated resources are reported as
general revenues rather than as program revenues. Likewise, general revenues include all taxes.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
34
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 Funds) are
accounted for within the proprietary funds and on the government-wide financial statements.
Depreciation is provided on property, plant and equipment using the straight-line method over the
estimated useful lives of the related assets:
Server/Software……………………………………………………. 6 years
Office Equipment ............................................................................. 10 years
Furniture ........................................................................................... 20 years
Vehicles.............................................................................................. 7 years
Light Equipment .............................................................................. 10 years
Heavy Equipment............................................................................. 20 years
Buildings .......................................................................................... 40 years
Water and Wastewater Systems ................................................ 20-100 years
Deferred Outflows/Inflows of Resources
In addition to assets, the statement of financial position will sometimes report a separate section
for deferred outflows of resources. This separate financial statement element, deferred outflows of
resources, represents a consumption of net position that applies to a future period(s) and so will
not be recognized as an outflow of resources (expense/expenditure) until then.
The City has only one type of deferred outflows of resources. This amount relates to the City’s
allocable share of the effect of changes during the year on the valuation of the net pension liability.
This amount is reported only in the business-type funds and in the government-wide financial
statements.
In addition to liabilities, the statement of financial position will sometimes report a separate section
for deferred inflows of resources. This separate financial statement element, deferred inflows of
resources, represents an acquisition of net position that applies to a future period(s) and so will not
be recognized as an inflow of resources (revenue) until that time.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
35
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 deferred revenues related to LID
special assessments. These amounts are deferred and recognized as an inflow of resources in the
period that the amounts become available. The second type of deferred inflows of resources relates
to the effect of changes during the year in the calculation of the net pension liability. The third type
is deferred income related to leases receivable which will be recognized over time as the lease is
earned.
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, 2023 the City amended the budget for several
of the funds.
Encumbrances
Encumbrance accounting, under which purchase orders, contracts, and other commitments for the
expenditures of monies are recorded in order to reserve that portion of the applicable appropriation,
is not employed by the City because it is not considered necessary to assure effective budgetary
control or to facilitate effective cash planning and control.
Inventory
Inventory is stated at the lower of cost or market. Inventory for all funds consists of
expendable supplies held for consumption and is recorded when consumed (consumption method).
Cash Equivalents
For the purpose of the statement of cash flows for the proprietary funds, the City considers all
highly liquid debt instruments purchased with a maturity of three months or less to be cash
equivalents. Funds invested with the State Treasurer's Pool are classified as investments on the
combined balance sheet and are considered to be cash equivalents.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
36
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Fair Value Measurements
Fair value is the price that would be received to sell an asset or paid to transfer a liability in an
ordinary transaction between market participants at the measurement date. A three-tier hierarchy
prioritizes the inputs used in measuring fair value. These tiers include:
Level 1 - defined as observable inputs such as quoted market prices in active markets;
Level 2 - defined as inputs other than quoted market prices in active markets that are
either directly or indirectly observable; and
Level 3 - defined as unobservable inputs in which little or no market data exists, therefore,
requiring an entity to develop its own assumptions.
The asset’s or liability’s fair value measurement within the hierarchy is based on the lowest level
of any input that is significant to the fair value measurement.
Although the Foundation believes its valuation methods are appropriate and consistent with other
market participants, the use of different methodologies or assumptions to determine the fair value
of certain financial instruments could result in a different fair value measurement at the reporting
date
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 3, 2025; the date the
financial statements were available to be issued.
New Accounting Pronouncement
GASB Statement No. 96, Subscription-Based Information Technology Arrangements (SBITAs):
Issued May 2020, this Statement provides guidance on the accounting and financial reporting for
SBITAs for government end users. This Statement (1) defines SBITA; (2) establishes that a SBITA
results in a right-to-use subscription asset—an intangible asset—and a corresponding subscription
liability; (3) provides the capitalization criteria for outlays other than subscription payments,
including implementation costs of a SBITA; and (4) requires note disclosures regarding a SBITA.
The District has evaluated the present value of all the District’s future subscription payments, and
the amount is not material to the financial statements as a whole. The adoption of this standard
resulted in no additional disclosures related to subscription-based information technology
arrangements.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
37
1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
New Accounting Pronouncement, continued
GASB Statement No. 94, Public-Private and Public-Public Partnerships and Availability of
Payment Arrangements (PPPs): Issued March 2020, this Statement improves reporting related to
PPPs. This statement is effective for fiscal years beginning after June 15, 2022. The adoption of
this standard resulted in no additional disclosures or changes to the financial statements.
The following GASB pronouncements have been issued, but will be effective in future years and
may impact the District’s future financials:
GASB Statement No. 100, Accounting Changes and Error Corrections: Issued June 2022, this
Statement is intended to provide more understandable, reliable, relevant, consistent, and
comparable information for making decisions or assessing accountability. This statement is
effective for fiscal years beginning after June 15, 2023.
GASB Statement No. 101, Compensated Absences: Issued June 2022, this Statement is intended
to increase consistency and comparability for reporting liabilities associated with compensated
absences. This statement is effective for fiscal years beginning after December 15, 2023.
GASB Statement No. 102, Certain Risk Disclosures: Issued December 2022, this Statement is
intended to provide financial statement users with essential information about risks related to a
government’s vulnerabilities due to certain concentrations or constraints. This statement is
effective for fiscal years beginning after June 15, 2024.
2. CASH AND SHORT-TERM INVESTMENTS
The City is authorized under Idaho Code to invest in cash, certificates of deposit, U.S. Government
securities, commercial paper and repurchase agreements. All investments must be held by or
registered in the name of the City.
Cash balances of most of the City’s funds are pooled and invested. Interest earned from
investments purchased with pooled cash is allocated to each of the funds based on the fund's cash
balance. The City maintains two primary checking accounts and other miscellaneous accounts
with local banks where a minimum balance is maintained. All excess funds are then invested with
the State Treasurer’s Local Government Investment Pool, the State’s Diversified Fund or accounts
managed through contracts with private investment advisors (Managed Accounts). These accounts
invest in time certificates of deposit, local government tax anticipation notes, federal loans, U.S.
treasury notes and other U.S. governmental securities. Information regarding insurance or
collateralization of amounts invested in the pooled accounts is not available.
The City has adopted the provisions of GASB Statement No. 40, Deposit and Investment Risk
Disclosures. This statement establishes and modifies disclosure requirements related to
investment and deposit risk; accordingly, the note disclosures on cash and investments are in
conformity with the provisions of GASB Statement No. 40.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
38
2. CASH AND SHORT-TERM INVESTMENTS (continued)
Deposits – At September 30, 2023, the carrying amount of the City’s bank deposits including
Certificates of Deposits (CDs) was $5,143,579; of which $2,401,476 were insured with the FDIC
or NCUA and $100,031 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, 2023; $2,002,807 of
the City’s total deposits and $639,265 of the Fire District Deposits were not covered by federal
depository insurance, and thus was exposed to custodial credit risk (the checking account had a
large balance at the end of the year because a check run of $2.2 million was being prepared for the
first week of the new fiscal year).
Investments – As of September 30, 2023, the City had the following investments:
Investment Type:
WAM
(years)Fair Value Less than 1 1-5 6-10 More than 10
State Diversified Bond Fund 2.630 4,009,726$ 1,603,811$ 1,911,628$ 494,287$ -$
Sate Investment Pool 0.277 7,507,937 7,377,311 130,626 - -
Moreton Asset Management 1.118 9,279,516 5,040,784 4,238,732 - -
Zion's Bank Capital Advisors 0.814 5,287,804 3,788,388 1,499,416 - -
TVI Bond Investments 2.010 10,242,875 3,441,606 6,801,269 - -
Certificates of Deposit N/A 1,958,273 1,958,273 - - -
Collateralized Municipal MM Funds N/A 100,031 100,031 - - -
Land N/A 610,083 - - - 610,083
38,996,245$ 23,310,204$ 14,581,671$ 494,287$ 610,083$
Investment Maturity (in years)
Custodial Credit Risk, Investments – For an investment, custodial credit risk is the risk that, in
the event of the failure of the counterparty, the City will not be able to recover the value of the
investments. The State diversifies these funds to reduce this risk.
Interest Rate Risk – As a means of limiting its exposure to fair value losses arising from
changes in interest rates, the City structures its portfolio so that securities mature to meet cash
requirements for ongoing operations. The Weighted Average Maturity (WAM) is stated above.
The following is a reconciliation of the City’s deposit and investment balance as of September
30, 2023:
Investments 38,386,161$
Petty Cash 3,410$
Bank Deposits 3,242,071$
Land 610,083$
Total 42,241,725$
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
39
2. CASH AND SHORT-TERM INVESTMENTS (continued)
All assets have been valued using a market approach except for the land which is categorized at a
Level 3 based on recent purchase price and appraisal inputs. 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 except land. Management does not believe that the land value has decreased
since purchase.
The following table summarized investments by level at September 30, 2023:
Investment Type:Fair Value: Level 1 Level 2 Level 3
State Diversified Bond Fund 4,009,726$ -$ 4,009,726$ -$
Sate Investment Pool 7,507,937 - 7,507,937 -
Moreton Asset Management 9,279,516 9,279,516 - -
Zion's Bank Capital Advisors 5,287,804 5,287,804 - -
TVI Bond Investments 10,242,875 10,242,875 - -
Certificates of Deposit 1,958,273 1,958,273 - -
Collateralized Municipal MM Funds 100,031 100,031 - -
Land 610,083 - - 610,083
38,996,245$ 26,868,499$ 11,517,663$ 610,083$
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
40
3. CAPITAL ASSETS
Capital assets activity for the governmental funds for the year ended September 30, 2023, was:
30-Sep 30-Sep
PRIMARY GOVERNMENT:2022 Increases Decreases 2023
GOVERNMENTAL ACTIVITIES:
Capital assets, not being depreciated:
Land 4,921,920$ -$ -$ 4,921,920$
Total capital assets, not being
depreciated 4,921,920 - - 4,921,920
Capital assets, being depreciated
Office 3,330,699 156,565 - 3,487,264
Archer station 1,802,046 46,303 - 1,848,349
Police 2,933,889 63,227 (42,479) 2,954,637
Fire 8,468,449 853,641 - 9,322,090
Engineering 102,790 - (26,631) 76,159
GIS 135,373 - - 135,373
Building Safety 166,660 42,890 - 209,550
Streets 68,542,609 4,057,940 - 72,600,549
Shop 1,457,167 - - 1,457,167
Golf Courses 3,004,697 409,145 - 3,413,842
Parks 9,554,721 344,266 - 9,898,987
Carousel 143,091 - - 143,091
Ball diamond 95,755 75,727 - 171,482
Airport 3,894,076 242,482 - 4,136,558
Fiber 3,122,370 3,148,783 - 6,271,153
Recreation 6,604,253 212,312 (6,399) 6,810,166
Romance Theatre 1,204,582 131,148 - 1,335,730
Legacy of Flight Museum 821,618 - - 821,618
Tabernacle/Museum/Cultural Arts 689,766 123,241 - 813,007
Total capital assets, being
depreciated 116,074,611 9,907,670 (75,509) 125,906,772
Less accumulated depreciation (48,456,951) (4,181,999) 69,790 (52,569,160)
Total capital assets, being
depreciated, net 67,617,660 5,725,671 (5,719) 73,337,612
Right of Use - Leases
Building 88,885 - (88,885) -
Vehicles 949,983 251,342 - 1,201,325
Less accumulated amortization (371,542) (239,488) 88,885 (522,145)
Total right of use - leases, net 667,326 11,854 - 679,180
Right of Use - SBITAs
Software 640,446 - - 640,446
Less accumulated amortization - (301,773) - (301,773)
Total right of use - SBITAs, net 640,446 (301,773) - 338,673
GOVERNMENTAL ACTIVITIES CAPITAL
ASSETS, NET 73,847,352$ 5,435,752$ (5,719)$ 79,277,385$
Total Cost Including Land 122,675,845$ 10,159,012$ (164,394)$ 132,670,463$
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
41
3. CAPITAL ASSETS (continued)
Depreciation expense was charged to the government activities as follows:
General and Administrative 529,082$
Public Safety 410,977$
Parks and Recreation 781,317$
Street 2,460,623$
Total Depreciation 4,181,999$
Capital assets activity for the proprietary funds for the year ended September 30, 2023, was:
30-Sep 30-Sep
PRIMARY GOVERNMENT:2022 Increases Decreases 2023
BUSINESS-TYPE ACTIVITIES:
Capital assets, not being depreciated:
Land 414,976$ -$ -$ 414,976$
Total capital assets, not being
depreciated 414,976 - - 414,976
Capital assets, being depreciated:
Sanitation 3,269,823 41,003 3,310,826
Water 30,706,749 847,516 (85,280) 31,468,985
Wastewater 46,866,741 994,671 (46,691) 47,814,721
Total capital assets, being
depreciated 80,843,313 1,883,190 (131,971) 82,594,532
Less accumulated depreciation:
Sanitation (2,097,699) (156,703) (2,254,402)
Water (9,342,153) (761,025) (10,103,178)
Wastewater (18,818,611) (1,364,871) 42,076 (20,141,406)
Total accumulated depreciation (30,258,463) (2,282,599) 42,076 (32,498,986)
Total capital assets, being
depreciated, net 50,584,850 (399,409) (89,895) 50,095,546
BUSINESS-TYPE ACTIVITIES CAPITAL
ASSETS, NET 50,999,826$ (399,409)$ (89,895)$ 50,510,522$
Total Assets Including Land 81,258,289 1,883,190 (131,971) 83,009,508
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
42
4. 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, 2023, are
based on the assessed values and tax revenues established in 2022. 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.
5. 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.
Altura Community Consulting & Business Finance (also known as East-Central Idaho Planning &
Development Association, Inc.) is currently administering these funds for the City. The balances
of outstanding loans at September 30, 2023 are as follows:
Recipient Repayment Terms Amount
Robertson Taylor, LLC Receivable in monthly installments including
interest through 2028.43,484$
Appible, LLC Receivable in monthly installments including
interest through 2017.9,410$
Coates Landscape Receivable in monthly installments including
interest through 2037.297,258$
Stoney Court Playcare, LLC Receivable in monthly installments including
interest through 2040.173,454$
Rexburg Flowers, LLC Receivable in monthly installments including
interest through 2031.190,591$
Integrity Development Receivable in monthly installments including
interest through 2031.86,055$
Graystone Ventures, LLC Receivable in monthly installments including
interest through 2031.189,427$
Altura This was matching funds to create the USDA
Ruiral Development IRP Revolving Loan
Fund 125,000$
1,114,679$
Between cash in the Development Company and cash/investments the city is holding, there is a
total of $418,938, which is available for future revolving loan projects.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
43
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 that 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-VEBA account 35% of their unused Sick
Leave of the first 480 hours (672 hours for ESD27 department employees) plus 35% of any Sick
Leave Bank balance.
The balance in the employee’s HRA-VEBA account is subject to a 20 year eligibility proration.
The percentage of their account that is made available to them at qualified retirement shall be
calculated by adding five percent (5%) for each full year of employment of the individual
employee up to a maximum of one hundred percent or twenty years (100% = 20 years times 5%
each). Employees will be eligible for this benefit after 5 years of continuous City employment
and upon eligible retirement as described below.
To promote longevity, this benefit is available only to employees who obtain one of the
following requirements:
1) They receive full monthly retirement benefits as defined and controlled by the State of Idaho
Retirement System (PERSI) meeting the Rule of 80 or 90 as applicable, or a combination thereof
depending on applicability and as determined by PERSI.
2) They meet the age requirements of a PERSI Service Retirement.
3) The employee is terminated without cause.
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 $562,670 as of 9/30/23.
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.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
44
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 Health Qualifying Form (wellness exam) form in the prior calendar
year and engaged in health coaching (if required). Half of this amount is available to the
employees at the start of each calendar year in January and the second half at the beginning of
July, and can be carried forward for reimbursement in future years to offset qualified medical
expenses. HRA balances may be used during employment or after termination of employment to
pay, or be reimbursed for, eligible medical bills. The City contributes the amount of this liability
every year to an account in the employee’s name in the custody of a third party administrator so
that there is no outstanding unfunded liability.
8. LOCAL IMPROVEMENT ASSESSMENTS
Assessments are made against property owners within the City for each owner's pro-rata share of
the costs of Local Improvement District construction. Such assessments represent a lien against
the related property and are generally payable in ten equal payments of principal and interest.
Special assessments are recognized as revenue only to the extent that individual installments are
currently due. The balance of such assessments is shown as deferred inflow. The collection of
revenues for special assessments and the payment of special assessment bonds are accounted for
in the LID Debt Service Fund.
9. LOCAL IMPROVEMENT DISTRICT WARRANTS PAYABLE
Each year, as needed the City authorizes warrants to finance the improvements of certain streets
along with constructing or reconstructing sidewalks, curbs, gutters, drainage facilities and other
work incidental to improvements along streets and issues warrants to finance the construction. As
of September 30, 2023, there were no warrants outstanding. The City has self-funded the deficits
in the LID Debt Service Funds by borrowing from the General Fund. The LID Debt Service
Funds had a total deficit of $1,831,551 as of September 30, 2023 that was self-funded by the
General Fund.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
45
10. CHANGES IN LONG-TERM OBLIGATIONS
A summary of long-term obligations of the City for the year ended September 30, 2023, is as
follows:
30-Sep 30-Sep
PRIMARY GOVERNMENT: 2022 Increases Decreases 2023
GOVERNMENTAL ACTIVITIES:
Accrued compensated absences (Note 6) 448,540 98,789 - 547,329 547,329
Lease liability (Note 11) 540,477 251,342 (263,798) 528,021 189,855
Financed purchase obligaions (Note 12) 207,170 97,200 (78,205) 226,165 51,685
Contracts Payable (Note 13) 253,426 - (81,955) 171,471 84,454
Net pension liability (Note 14) 8,743,103 140,736 - 8,883,839 -
Governmental Acitity Long-
Term Obligations 10,192,716 588,067 (423,958) 10,356,825 873,323
BUSINESS-TYPE ACTIVITIES:
Accrued compensated absences (Note 6) 67,811 4,557 - 72,368 72,368
Water DEQ loan (Note 10) 7,331,420 - (191,820) 7,139,600 194,847
Wastewater revenue bonds (Note 10) 2,350,000 - (775,000) 1,575,000 785,000
Net pension liability (Note 14) 1,454,755 - (144,690) 1,310,065 -
Business-type Acitity Long-
Term Obligations 11,203,986 4,557 (1,111,510) 10,097,033 1,052,215
Total City Long-Term Obligations 21,396,702 592,624 (1,535,468) 20,453,858 1,925,538
Due within
One Year
Description of Long-term debt:
Wastewater Revenue Bonds outstanding at September 30, 2023, were as follows:
The bond ordinance for the revenue bonds provides for the establishment of certain accounts and
reserves and further provides that all revenues of the wastewater system are to be used initially for
payment of operation and maintenance costs of the system, principal and interest on the bonds,
and establishment of certain defined debt repayment reserves.
Water DEQ Loan outstanding as of September 30, 2023:
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
46
10. CHANGES IN LONG-TERM OBLIGATIONS (continued)
This loan was obtained through the Idaho State Department of Environmental Quality (DEQ) and
was funded 77.5281% by the Federal Environmental Protection Agency (EPA) and 22.4719% by
DEQ. The total amount the City was able to draw was $11,100,000, of which approximately 20%
was forgiven as a grant. The final loan terms were established in 2022.
The annual repayment requirements as of September 30, 2023, including interest, are as follows:
Total
Principal Interest Principal Interest
2024 194,847$ 124,427$ 785,000$ 18,585$ 1,122,859$
2025 198,617 120,657 790,000 9,322 1,118,596
2026 202,108 117,166 319,274
2027 205,660 113,613 319,273
2028 205,660 111,000 316,660
2029-2033 1,083,216 402,150 1,485,366
2034-2038 1,182,187 414,179 1,596,366
2039-2043 1,289,843 306,523 1,596,366
2044-2048 1,407,304 189,061 1,596,365
2049-2053 1,170,158 60,910 1,231,068
Total Commitmen 7,139,600$ 1,959,686$ 1,575,000$ 27,907$ 10,702,193$
Wastewater Revenue BondsWater DEQ Loan
Year Ending
September 30,
Bonded Debt Repayment Requirements: The local improvement warrant interest expenditures
are recorded in LID Debt Service Funds.
11. LEASE ACTIVITY
Lessee Activities:
As a lessee, the City recognizes a lease liability and a right of use asset in the government-wide and
proprietary financial statements under the full accrual method. At the commencement of the lease,
the City initially measures the lease liability at the present value of payments expected to be made
during the lease term and any likely extensions outlined in the contract. Key estimates and
judgments related to leases include how the City determines (a) the discount rate it uses to discount
the expected lease payments to present value, (2) lease term, and (3) lease payment.
- The City uses the stated rate of the contract, if provided, or its estimated incremental borrowing
rate.
- The lease term includes the noncancellable period of the lease.
- Lease payments included in the measurement of the lease liability are composed of fixed
payments and purchase option prices that the City is reasonably certain to exercise.
The City monitors changes in circumstances that would require a remeasurement of its lease and
will remeasure the lease liability and related right of use asset if certain changes occur that are
expected to significantly affect the amount of the liability or asset.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
47
11. LEASE ACTIVITY (continued)
Lease agreements are summarized by type as follows:
Vehicles – Starting in 2018, the City of Rexburg has leased its police fleet. This represents 35
vehicles. The vehicles are leased for 5 years and are replaced as the lease term expires. The lease is
discounted at 3% with annual payments totaling $255,433.
Buildings – The Zone facility has been leased by the City for use by the recreation department for
the Kid’s Berg program. The term ended at the end of December 2022. The lease is discounted at
3% with monthly payments of $2,706.
Remaining lease obligations are as follows:
Principal Interest Total
2024 189,855$ 2,386$ 192,243$
2025 162,685 2,107 164,792
2026 121,151 1,969 123,120
2027 54,330 1,282 55,608
528,021$ 7,744$ 535,763$
Lessor Activities:
As a lessor, the City recognizes a lease receivable and a deferred inflow of resources in the
governmental fund financial statements and proprietary fund statements under the full accrual
method.
At the commencement of a lease, the City initially measures the lease receivable at the present value
of payments expected to be received during the lease term. Subsequently, the lease receivable is
reduced by the principal portion of lease payments received. The deferred inflow of resources is
initially measured as the initial amount of the lease receivable, adjusted for lease payments received
at or before the lease commencement date. Subsequently, the deferred inflow of resources is
recognized as revenue over the life of the lease term.
Key estimates and judgments related to leases include how the City determines (a) the discount rate
it uses to discount the expected lease receipts to present value, (2) lease term, and (3) lease receipts.
-The City uses the stated rate of the contract, if provided, or its estimated incremental borrowing
rate.
-The lease term includes the noncancellable period of the lease.
-Lease receipts included in the measurement of the lease receivable are composed of fixed
payments.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
48
11. LEASE ACTIVITY (continued)
Leasor agreements summarized by type are as follows:
Buildings – The City owned building where City Hall is housed provides business space (suite 3,
3,177 sq ft) which is currently leased to the Research & Business Development Center. The lease
term is 5 years with an option to renew for successive 5-year terms. The lease is discounted at 3%
with monthly payments of $3,010
Space – The City has leased 3 spaces for cell towers. Two of these leases are for 5 years, and the
third is for 30 years. All leases are discounted at 3.0% with monthly payments from $578 to $2,070.
Remaining lease receipts are as follows:
Principal Interest Total
2024 40,972$ 2,304$ 43,276$
2025 41,344 2,146 43,490
2026 38,718 983 39,701
2027 6,010 1,809 7,819
2028 6,426 1,626 8,052
2029-2033 39,195 4,829 44,024
2034-2038 11,868 211 12,079
184,533$ 13,908$ 198,441$
12. FINANCED PURCHASE
The City Golf Construction Fund has assisted in financing leases between the County and the
City related to golf cart purchases. There are currently three agreements totaling $226,168 at
September 30, 2023. The payment schedules are over 5 years and are discounted at a rate of 3%.
Payment are variable between 15,346 and 23,085. Remaining obligations are as follows:
Principal Interest Total
2024 51,685$ 7,514$ 59,199$
2025 51,682 5,818 57,500
2026 51,682 4,122 55,804
2027 51,682 2,425 54,107
2028 19,434 729 20,163
226,165$ 20,608$ 246,773$
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
49
13. CONTRACTS PAYABLE
Subscription-based Information Technology Agreements:
The City subscribes to a multi-year agreement with Tyler Technologies for their main financial
software. The agreement terms are set by contract, and the City records a liability and right of use
asset in connection with this agreement. At the commencement of the agreement, the City measures
the contract payable at the present value of payments expected to be made during the contract term
and any likely extensions outlined in the contract. Key estimates and judgments related to leases
include how the City determines (a) the discount rate it uses to discount the expected lease payments
to present value, (2) contract term, and (3) contract payment.
- The City uses its estimated incremental borrowing rate.
- The term includes the noncancellable period of the contract.
- Payments included in the measurement of the contract liability are composed of fixed payments
less amounts paid in advance, plus implementation costs prior to the City’s ability to use the
software.
The City monitors changes in circumstances that would require a remeasurement of its contracts
and will remeasure the liability and related right of use asset if certain changes occur that are
expected to significantly affect the amount of the liability or asset.
The agreement is discounted using a 3% discount rate, and costs 89,668 per year.
Remaining contract obligations are as follows:
Principal Interest Total
2024 84,454$ 3,302$ 86,367$
2025 87,017 667 89,001
171,471$ 3,969$ 175,368$
14. RETIREMENT PLANS
Public Employee Retirement System of Idaho
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.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
50
14. RETIREMENT PLANS (continued)
Responsibility for administration of the Base Plan and FRF is assigned to the Board comprised of
five members appointed by the Governor and confirmed by the Idaho Senate. State law requires
that two members of the Board be active Base Plan members with at least ten years of service and
three members who are Idaho citizens not members of the Base Plan except by reason of having
served on the Board.
Pension Benefits
The Base Plan provides retirement, disability, death and survivor benefits of eligible members or
beneficiaries. Benefits are based on members’ years of service, age, and highest average salary.
Members become fully vested in their retirement benefits with five years of credited service (5
months for elected or appointed officials). Members are eligible for retirement benefits upon
attainment of the ages specified for their employment classification. The annual service retirement
allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average
monthly salary for the highest consecutive 42 months.
The benefit payments for the Base Plan and FRF are calculated using a benefit formula adopted by
the Idaho Legislature. The FRF cost of living increase is based on the increase in the statewide
average firefighter’s wage. The Base Plan is required to provide a 1% minimum cost of living
increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board
has the authority to provide higher cost of living increases to a maximum of the Consumer Price
Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject
to review by the Idaho Legislature.
The FRF provides retirement, disability, death and survivor benefits of eligible members or
beneficiaries. Benefits are based on members’ years of service as well as the final average salary.
A firefighter must have 5 years of service to be eligible for a lifetime retirement allowance at age
60. Members are eligible for retirement benefits upon attainment of the ages specified for their
employment classification. The annual service retirement allowance is based on Idaho Code Title
72 Chapter 14. The benefit payments for the FRF are calculated using a benefit formula adopted
by the Idaho Legislature. The FRF cost of living increase is based on the increase in the statewide
average firefighter’s wage.
Member and Employer Contributions
Member and employer contributions paid to the Base Plan and FRF are set by statute and are
established as a percent of covered compensation. Contribution rates are determined by the PERSI
Board within limitations, as defined by state law. 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.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
51
14. RETIREMENT PLANS (continued)
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, 2023, 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 $1,380,811 for the year ended September 30, 2023.
As of June 30, 2023, 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 $48,037 for the year ended September 30,
2023.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and
Deferred Inflows of Resources Related to Pensions
At September 30, 2023, the City reported a liability for its proportionate share of the net pension
liability 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, 2023, and the total pension liability for the Plans used to calculate the net pension
asset/liability were determined by an actuarial valuation as of that date. The City’s proportion of
the net pension asset/liability was based on the City’s share of contributions to the Plans relative
to the total contributions of all participating PERSI Base Plan and FRF employers. At June 30,
2023 the City’s proportions were:
1) Base Plan including non-FRF firemen 0.2664626%
2) Base Plan including FRF firemen 0.0094304%
3) FRF Excess Costs Plan. 0.3452044%
For the year ended September 30, 2023, the City recognized pension expense (revenue) of:
Base Plan: $ 1,403,376
Base FRF Plan: $ 56,854
FRF Excess Plan: $ (66,542)
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
52
14. RETIREMENT PLANS (continued)
At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of
resources related to the Base Plan pension plan from the following sources:
$389,497 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, 2024.
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, 2022 the
beginning of the measurement period ending June 30, 2023, is 4.4 years and 4.6 years for the
measurement period June 30, 2022.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
53
14. RETIREMENT PLANS (continued)
At September 30, 2023, the City reported deferred outflows of resources and deferred inflows of
resources related to the Base FRF pension plan from the following sources:
$17,477 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, 2024.
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, 2022 the
beginning of the measurement period ending June 30, 2023, is 4.4 years and 4.6 years for the
measurement period June 30, 2022.
At September 30, 2023 the City reported deferred outflows of resources and deferred inflows of
resources related to the FRF Excess pension plan from the following sources:
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
54
14. RETIREMENT PLANS (continued)
The average of the expected remaining service lives of all employees that are provided with
pensions through the System (active and inactive employees) determined at July 1, 2022 the
beginning of the measurement period ending June 30, 2023, is 1 year and 1 year for the
measurement period June 30, 2022.
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:
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, 2023 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:
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
55
14. RETIREMENT PLANS (continued)
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%.
5% of Fire and Police active member deaths
are assumed to be duty related. This
assumption was adopted July 1, 2021
Disabled Members - Males Pub-2010 Disabled Tables, increased 38%.
Disabled Members - Females Pub-2010 Disabled Tables, increased 36%.
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, 2023 is based on the results of an actuarial valuation date of July
1, 2023.
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, 2023 is based on the results of an actuarial
valuation date of July 1, 2023.
The long-term expected rate of return on pension plan investments was determined using the
building block approach and a forward-looking model in which best estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expense and inflation)
are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption,
the System relies primarily on an approach which builds upon the latest capital market
assumptions. Specifically, the System uses consultants, investment managers and trustees to
develop capital market assumptions in analyzing the System’s asset allocation. The assumptions
and the System’s formal policy for asset allocation are shown below. The formal asset allocation
policy is somewhat more conservative than the current allocation of System’s assets.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
56
14. RETIREMENT PLANS (continued)
The best-estimate range for the long-term expected rate of return is determined by adding expected
inflation to expected long-term real returns and reflecting expected volatility and correlation. The
capital market assumptions are as of 2023.
Long-Term
Target Expected Real
Asset Class Allocation Rate of Return
Large Cap 18% 4.50%
Small/Mid Cap 11% 4.70%
International Equity 15% 4.50%
Emerging Markets Equity 10% 4.90%
Domesitc Fixed 20% -0.25%
TIPS 10% -0.30%
Real Estate 8% 3.75%
Private Equity 8% 6.00%
Total 100%
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.
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:
5.35% 6.35% 7.35% 5.35% 6.35% 7.35%
19,125,045$ 10,633,642$ 3,693,514$ 676,855$ 376,335$ 130,717$
5.35% 6.35% 7.35%
(746,468)$ (816,073)$ (876,736)$
Base Plan Base FRF Plan
1% Decrease
Current
Discount Rate 1% Increase
Current
Discount Rate1% Decrease
FRF Excess Plan
1% Decrease
Current
Discount Rate 1% Increase
1% Increase
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
57
14. RETIREMENT PLANS (continued)
Pension plan fiduciary net position
Detailed information about the pension plan’s fiduciary net position is available in the separately
issued PERSI financial report.
PERSI issues a publicly available financial report that includes financial statements and the
required supplementary information for PERSI. That report may be obtained on the PERSI website
at www.persi.idaho.gov.
Payables to the pension plan
At September 30, 2023, 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 4% 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 2023 fiscal year payroll for all employees was $13,224,586; of which $9,014,280
was for covered payroll for employees who were members of the Plan. Employer and employee
contributions to the Plan were 1.92% and 4.18% respectively, of covered payroll. Total
contributions to the Plan for the fiscal year by the City and the employees were $172,790 and
$376,604 respectively. The Plan had $8,968,506 in net assets at September 30, 2023.
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
commits to do so for a 12- month minimum.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
58
15. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES
The City expenditures exceeded the budgeted amounts in the following funds during the year ended
September 30, 2023:
The following individual funds had fund deficits on September 30, 2023:
Recreation Program Fund—There is a fund deficit of $5,728.
Airport Operations Fund—There is a fund deficit of $15,756.
Golf Course Construction Fund—There is a fund deficit of $111,853. The City expects to
reduce/eliminate this deficit from transfers each year from the golf operations fund and the general
fund.
LID Construction Fund—There is a fund deficit of $689,163 for fund 52. The City expects to
eliminate this deficit as the LID Project 52 is completed in Fiscal Year 2024 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 $1,831,551. The City expects to
eliminate this deficit as assessments are collected on the LID financed projects over time. The city
also has $97,852 in an LID Guarantee Fund to offset any shortfalls over time if necessary.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
59
16. 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 can exercise oversight responsibilities. Based upon
the application of these criteria, the following is a brief review of the component units addressed
in defining the government's reporting entity.
Included with the reporting entity:
Rexburg Urban Renewal Agency – This component unit was organized to make improvements to
infrastructure. It derives its revenues from the incremental tax increases that all taxing districts
forfeit from increase in value of the land and buildings in the new construction areas.
Cash and Investments – The component unit had total cash and investment balances of $7,717,360;
broken down as follows:
Beehive Credit Union bank deposits of $94,992; covered by NCUA insurance up to $250,000. DL
Evans Bank Bond Reserve Fund deposit of $277,20; covered up to $250,000 by FDIC insurance.
Idaho State Local Government Investment Pool of $3,183,602; which is diversified to reduce risk
and is mostly invested in US Government securities, Idaho State Diversified Bond Fund of
$104,038; which is diversified to reduce risk, and is mostly invested in US Government securities,
and US Agency Bonds purchased through Time Value Investments (TVI) of $4,057,509.
Long-term Debt – Revenue Allocation (Tax Increment) Bonds do not constitute indebtedness
within the meaning of any constitutional or statutory debt limitation or restriction, and does not
constitute a general obligation or debt of the City of Rexburg, Idaho, or any municipality, the State
of Idaho, or any of its political subdivisions. In no event does this Bond give rise to a general
obligation or liability of the Agency, any municipality, the State of Idaho, or any of its political
subdivisions, or give rise to a charge against their general credit or taxing powers, or be payable
out of any funds or properties other than those of the Agency specifically pledged therefore. Only
tax increment property tax revenues, which are paid to the tax increment district for which the
bonds were sold, are obligated to pay off the bond.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
60
16. COMPONENT UNIT – REXBURG URBAN RENEWAL AGENCY
Revenue Bonds Outstanding at September 30, 2023 were as follows:
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
61
17. INTERFUND TRANSACTIONS
Transfers between funds during the year were as follows:
Funds
Governmental: Transfers Out Transfers In
General 3,211,059$ 20,496$
Street Operating 2,988,853 -
Recreation - 78,911
Tabernacle - 234,599
Police DARE - 8,500
Police Grant 20,496 -
Emergency Services - 2,287,069
Joint Fire Equipment - 210,000
Madison County Fire District 900,881 -
Fire Impact Fee Fund 39,997 -
Rexburg Rapids Operations - 65,004
Legacy Flight Museum - 15,000
New City/Police Building - 400,000
Street Impact Fee 87,669 -
Arts Promulgation 35,004 -
Parks Impact Fee 30,000 -
Madison Trails - 60,000
Romance Theatre - 172,473
Park Contruction - 225,727
Street Reconstruction 2,076,815 2,988,853
New Streets - 87,669
Airport Operations - 16,000
Airport Construction - 7,944
Airport Relocation Reserve - 20,004
Golf Course Operations 84,417 50,000
Golf Course Debt Service - 109,413
LID Construction - 1,907,879
LID Debt Service - 168,936
Rexburg Culteral Arts - 171,872
Entrepreneurial - 15,000
Fiber Construction - -
Fiber Operating - 183,842
501 C3 30,000 -
9,505,191$ 9,505,191$
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
62
17. INTERFUND TRANSACTIONS (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
Rexburg Cultural Arts Fund
Entrepreneurial Effort Fund
Golf Course Operations Fund to subsidize operating & capital costs
Golf Course Construction Fund loan payback
Airport Operations Fund
Airport Relocation Reserve Fund for future expenditures to relocate the Airport.
Romance Theatre Fund
Police Dare Fund
Recreation Programs Fund
Tabernacle Fund
Joint Fire Equipment for its assessment for new fire equipment
Emergency Services Operations Fund for its share of costs
Rexburg Rapids Fund to cover the future cost of replacing capital or covering operation losses.
Trails Fund to connect existing trails and build new ones
Parks Capital Reserve Construction Fund for future purchase of new equipment playground
equipment and other projects
Fiber Construction and Fiber Operating Fund created to construct and operate an open access
network to connect city assets and provide fiber services to all city residents
New City and Police Building Fund to save up 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
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 large construction
projects or salaries in the Cultural Arts Fund
The Parks Impact Fee Fund transfers cash to cover costs in Park Construction Fund
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
63
17. INTERFUND TRANSACTIONS (continued)
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 LIDs.
The following is a schedule of interfund receivables and payables as of September 30, 2023:
*Amounts intended to provide short-term coverage for cash deficits.
18. 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.
As of the date of these financial statements, Madison County has not determined the amount of
lost revenue resulting from this tax abatement. Therefore, the financial effects of the tax
abatements have not been recognized. The City will continue to work with the County to
ascertain the financial impact of these tax abatements. Any adjustments required to the financial
statements will be made in the period in which the information becomes available.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
64
19. 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.
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
65
19. FUND BALANCES (continued)
Detail of constraints on fund balances of governmental funds:09/30/23
General Streets
Emergency
Services
LID
Construction
Funds
Fiber Initiative
Construction
Fund
Non‐Major
Funds Total Capital Projects
Fund Balances:
Nonspendable:
Inventory 52,971$ ‐$ ‐$ ‐$ ‐$ ‐$ 52,971$ ‐$
Restricted for:
Streets ‐ 3,733,635 ‐ ‐ ‐ ‐ 3,733,635 3,733,635
Emergency Services ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Police Impact ‐ ‐ ‐ ‐ ‐ 295,803 295,803 295,803
DARE ‐ ‐ ‐ ‐ ‐ 21,739 21,739 ‐
Police Drug Enforcement ‐ ‐ ‐ ‐ ‐ 16,693 16,693 ‐
High 5 & Other Grants ‐ ‐ ‐ ‐ ‐ 66,887 66,887 66,887
Joint Fire Equipment ‐ ‐ ‐ ‐ ‐ 1,169,297 1,169,297 1,169,297
Madison County Fire Prot. District ‐ ‐ ‐ ‐ ‐ 1,626,474 1,626,474 ‐
Fire Impact ‐ ‐ ‐ ‐ ‐ 8,329 8,329 8,329
ESD Rexburg Employees ‐ ‐ ‐ ‐ ‐ 25,418 25,418 ‐
Legacy Flight Museum ‐ ‐ ‐ ‐ ‐ 288,206 288,206 ‐
Street Impact ‐ ‐ ‐ ‐ ‐ 2,079,432 2,079,432 2,079,432
ESD Paramedic Care ‐ ‐ ‐ ‐ ‐ 592,344 592,344 ‐
Parks Impact ‐ ‐ ‐ ‐ ‐ 420,715 420,715 420,715
Trails of Madison County ‐ ‐ ‐ ‐ ‐ 259,875 259,875 259,875
Riverside Park Construction ‐ ‐ ‐ ‐ ‐ 192,387 192,387 192,387
Airport Operations ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Airport Construction ‐ ‐ ‐ ‐ ‐ 52,895 52,895 52,895
Golf Operations ‐ ‐ ‐ ‐ ‐ 415,963 415,963 ‐
Golf Construction ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
LID Construction ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Shop with a Cop ‐ ‐ ‐ ‐ ‐ 43,967 43,967 ‐
Ambulance Capital Replacement ‐ ‐ ‐ ‐ ‐ 406,082 406,082 406,082
City 501c3 Foundation ‐ ‐ ‐ ‐ ‐ 5,069 5,069 ‐
Committed to:
Stabilization 5,770,975 ‐ ‐ ‐ ‐ ‐ 5,770,975 ‐
Recreation ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Tabernacle ‐ ‐ ‐ ‐ ‐ 73,847 73,847 73,847
Police Small Grants ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Revolving Loan ‐ ‐ ‐ ‐ ‐ 1,533,617 1,533,617 ‐
Rexburg Rapids Operations ‐ ‐ ‐ ‐ ‐ 105,458 105,458 105,458
Building Safety Comm Dev ‐ ‐ ‐ ‐ ‐ 1,200,018 1,200,018 ‐
GIS ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Joint City Hall Police Building Capital Reserv ‐ ‐ ‐ ‐ ‐ 1,200,000 1,200,000 1,200,000
Arts Promulgation ‐ ‐ ‐ ‐ ‐ 181,725 181,725 ‐
Romance Theatre ‐ ‐ ‐ ‐ ‐ 34,044 34,044 34,044
Airport Relation Reserve ‐ ‐ ‐ ‐ ‐ 1,021,888 1,021,888 1,021,888
Fiber Initiative Construction ‐ ‐ ‐ ‐ 1,130,647 ‐ 1,130,647 1,130,647
Entrepreneurial Program ‐ ‐ ‐ ‐ ‐ 67,038 67,038 ‐
2nd East Construction ‐ ‐ ‐ ‐ ‐ ‐ ‐
Shop with a Cop ‐ ‐ ‐ ‐ ‐ 843,414 843,414 843,414
Fiber Operations ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Unassigned:1,127,386 ‐ ‐ (1,831,551) ‐ (822,499) (1,526,664) ‐
Total Fund Balances 6,951,332$ 3,733,635$ ‐$ (1,831,551)$ 1,130,647$ 13,426,125$ 23,410,188$ 13,094,635
Major Revenue Funds
CITY OF REXBURG, IDAHO
NOTES TO FINANCIAL STATEMENTS
September 30, 2023
66
19. FUND BALANCES (continued)
General Streets
Emergency
Services
LID
Construction
Funds
Fiber Initiative
Construction
Fund
Non‐Major
Funds Total Capital Projects
Fund Balances:
Nonspendable 52,971$ ‐$ ‐$ ‐$ ‐$ ‐$ 52,971$ ‐$
Restricted ‐ 3,733,635 ‐ ‐ ‐ 7,987,575 11,721,210 8,685,337
Committed 5,770,975 ‐ ‐ ‐ 1,130,647 6,261,049 13,162,671 4,409,298
Assigned ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐
Unassigned 1,127,386 ‐ ‐ (1,831,551) ‐ (822,499) (1,526,664) ‐
Total Fund Balances 6,951,332$ 3,733,635$ ‐$ (1,831,551)$ 1,130,647$ 13,426,125$ 23,410,188$ 13,094,635$
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.
REQUIRED SUPPLEMENTARY INFORMATION
See Independent Auditors’ Report
67
Actual Variance
Original Final Amounts to Final Budget
Budget Budget Budgetary Under
Amount Amount Basis (Over)
REVENUES:
Taxes 10,662,600$ 10,662,600$ 10,286,755$ (375,845)$
Grants and Contributions 749,500 754,500 628,248 (126,252)
Fees and Charges 4,320,500 4,324,500 4,360,604 36,104
Investment/Interest Income 115,000 115,000 574,892 459,892
Transfers in from Other Funds - 10,000 20,496 10,496
Miscellaneous 1,107,100 1,447,100 12,754 (1,434,346)
TOTAL REVENUES 16,954,700 17,313,700 15,883,749 (1,429,951)
EXPENDITURES:
Current:
General and Administrative 4,991,300 5,231,500 5,149,299 82,201
Public Safety 6,154,300 6,198,100 6,002,162 195,938
Parks and Recreation and Arts 1,126,800 1,149,400 1,143,823 5,577
Capital Improvements:411,100 578,700 327,448 251,252
Transfers Out 3,858,200 4,128,100 3,211,059 917,041
Contingency 413,000 27,900 - 27,900
TOTAL EXPENDITURES 16,954,700 17,313,700 15,833,791 1,479,909
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - 49,958 49,958
FUND BALANCE, BEGINNING OF YEAR - - 6,901,374 6,901,374
FUND BALANCE, END OF YEAR -$ -$ 6,951,332$ 6,951,332$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND
For the year ended September 30, 2023
See Independent Auditors’ Report
68
Actual Variance
Original Final Amounts to Final Budget
Budget Budget Budgetary Under
Amount Amount Basis (Over)
REVENUES:
Taxes 2,775,000$ 2,775,000$ 2,831,499$ 56,499$
Grants and Contributions 1,880,000 2,174,500 2,774,448 599,948
Fees and Charges 2,333,100 2,333,100 2,276,634 (56,466)
Transfers in from Other Funds 2,405,500 2,405,500 3,076,522 671,022
Miscellaneous 31,000 31,000 59,033 28,033
TOTAL REVENUES 9,424,600 9,719,100 11,018,136 1,299,036
EXPENDITURES:
Current:
Streets 2,895,600 2,937,600 2,159,879 777,721
Capital Improvements: 2,572,000 2,834,000 2,164,670 669,330
Transfers Out 5,031,100 5,031,100 5,065,668 (34,568)
Contingency 413,900 407,900 - 407,900
TOTAL EXPENDITURES 10,912,600 11,210,600 9,390,217 1,820,383
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (1,488,000) (1,491,500) 1,627,919 3,119,419
FUND BALANCE, BEGINNING OF YEAR 1,488,000 1,491,500 2,105,716 614,216
FUND BALANCE, END OF YEAR -$ -$ 3,733,635$ 3,733,635$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
STREET FUND
For the year ended September 30, 2023
See Independent Auditors’ Report
69
Actual Variance
Original Final Amounts to Final Budget
Budget Budget Budgetary Under
Amount Amount Basis (Over)
REVENUES:
Grants and Contributions 2,235,500$ 2,377,200$ 2,248,388$ (128,812)$
Fees and Charges 277,900 397,900 391,479 (6,421)
Transfers in from Other Funds 2,301,600 2,451,400 2,287,069 (164,331)
TOTAL REVENUES 4,815,000 5,226,500 4,926,936 (299,564)
EXPENDITURES:
Current:
Public Safety 4,704,400 4,899,300 4,887,686 11,614
Capital Improvements: 110,600 327,200 39,250 287,950
TOTAL EXPENDITURES 4,815,000 5,226,500 4,926,936 299,564
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - - -
FUND BALANCE, BEGINNING OF YEAR - - - -
FUND BALANCE, END OF YEAR -$ -$ -$ -$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
EMERGENCY SERVICES
For the year ended September 30, 2023
See Independent Auditors’ Report
70
Actual Variance
Original Final Amounts to Final Budget
Budget Budget Budgetary Under
Amount Amount Basis (Over)
REVENUES:
Fees and Charges 507,500$ 507,500$ 593,489$ 85,989$
Investment/Interest Income 19,500 19,500 59,610 40,110
TOTAL REVENUES 527,000 527,000 822,035 295,035
EXPENDITURES:
Current:
Transfers Out 160,000 160,000 - 160,000
Contingency 367,000 367,000 - 367,000
TOTAL EXPENDITURES 527,000 527,000 - 527,000
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - 822,035 822,035
FUND BALANCE, BEGINNING OF YEAR - - (2,653,586) (2,653,586)
FUND BALANCE, END OF YEAR -$ -$ (1,831,551)$ (1,831,551)$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
LID DEBT SERVICE FUNDS
For the year ended September 30, 2023
See Independent Auditors’ Report
71
Actual Variance
Original Final Amounts to Final Budget
Budget Budget Budgetary Under
Amount Amount Basis (Over)
REVENUES:
Grants and Contributions 2,035,300$ 2,035,300$ 1,280,956$ (754,344)$
Miscellaneous 3,909,000 3,909,000 - (3,909,000)
TOTAL REVENUES 5,944,300 5,944,300 1,280,956 (4,663,344)
EXPENDITURES:
Current:
General and Administrative 2,000 2,000 928,080 (926,080)
Capital Improvements: 5,337,000 5,337,000 3,148,783 2,188,217
Transfers Out 30,000 30,000 - 30,000
Contingency 575,300 575,300 - 575,300
TOTAL EXPENDITURES 5,944,300 5,944,300 4,076,863 1,867,437
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - - (2,795,907) (2,795,907)
FUND BALANCE, BEGINNING OF YEAR - - 3,926,554 3,926,554
FUND BALANCE, END OF YEAR -$ -$ 1,130,647$ 1,130,647$
CITY OF REXBURG, IDAHO
BUDGETARY COMPARISON SCHEDULE
FIBER INITIATIVE CONSTRUCTION FUND
For the year ended September 30, 2023
See Independent Auditors’ Report
72
Net Pension
Liability %
Share
Amount of
Proportionate
Share of Net
Pension Liability
Covered
Employee
Payroll
Net Pension
Liabilit % of
Covered Payroll
Plan Fiduciary
Net Position as
a % of Total
Pension Liability
2015 0.2354998% 3,101,149$ 6,532,443$ 47.47% 91.38%
2016 0.2346076% 4,755,856 6,828,131 69.65% 87.26%
2017 0.2405212% 3,780,580 7,754,370 48.75% 90.68%
2018 0.2651606% 3,911,165 8,454,828 46.26% 91.69%
2019 0.2637191% 3,010,280 9,174,510 32.81% 93.79%
2020 0.2588251% 6,010,261 9,482,345 63.38% 88.22%
2021 0.2638486% (208,381) 9,788,027 -2.13% 100.36%
2022 0.2674466% 10,534,075 10,819,487 97.36% 83.09%
2023 0.2664626% 10,193,904 11,138,729 91.52% 83.83%
Date reported in measured as of June 30, 2023 (measurement date)
Statutorily
Required
Contributions
Contributions in
Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)/
Excess
Employer's
Covered
Employee
Payroll
Contribution
Percent of
Covered
Employee
Payroll
2015 754,259$ 754,704$ 445$ 6,532,443$ 11.55%
2016 782,344 783,573 1,229 6,828,131 11.46%
2017 882,116 882,266 150 7,754,370 11.38%
2018 969,398 969,304 (94) 8,454,828 11.47%
2019 1,041,243 1,041,007 (236) 9,174,510 11.35%
2020 1,132,192 1,132,270 78 9,482,345 11.94%
2021 1,168,690 1,170,630 1,940 9,788,027 11.94%
2022 1,291,847 1,306,980 15,133 10,819,487 11.94%
2023 1,382,330 1,380,811 (1,519) 11,509,824 12.01%
Date reported in measured as of September 30, 2023 (reporting date)
Last 10 Fiscal Years*
*GASB Statement No. 68 requires ten years of information be presented in this table.
However, until a full 10-year trend is compiled, the City will present information for those
years for which information is available.
CITY OF REXBURG, IDAHO
Last 10 Fiscal Years*
PERSI Base Plan
Schedule of Employer's Share of Net Pension Liability
Schedule of Employer Contributions
PERSI Base Plan
See Independent Auditors’ Report
73
Net Pension
Liability %
Share
Amount of
Proportionate
Share of Net
Pension Liability
Covered
Employee
Payroll
Net Pension
Liabilit % of
Covered Payroll
Plan Fiduciary
Net Position as
a % of Total
Pension Liability
2015 0.0074381% 97,948$ 202,664$ 48.33% 91.38%
2016 0.0069380% 140,644 203,554 69.09% 87.26%
2017 0.0081586% 129,239 250,204 51.65% 90.68%
2018 0.0085741% 126,469 267,230 47.33% 91.69%
2019 0.0082998% 94,740 287,660 32.93% 93.79%
2020 0.0078675% 182,694 228,656 79.90% 88.22%
2021 0.0089592% (7,076) 341,254 -2.07% 100.36%
2022 0.0094562% 372,455 376,027 99.05% 83.09%
2023 0.0094304% 376,333 381,242 98.71% 83.83%
Date reported in measured as of June 30, 2023 (measurement date)
Statutorily
Required
Contributions
Contributions in
Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)/
Excess
Employer's
Covered
Employee
Payroll
Contribution
Percent of
Covered
Employee
Payroll
2015 23,584$ 24,308$ 724$ 202,664$ 11.64%
2016 24,062 23,734 (328) 203,554 11.82%
2017 29,240 29,175 (65) 250,204 11.69%
2018 31,160 31,159 (1) 267,230 11.66%
2019 33,541 33,542 1 287,660 11.66%
2020 28,079 28,079 - 228,656 12.28%
2021 41,906 41,906 - 341,254 12.28%
2022 46,176 46,173 (3) 376,027 12.28%
2023 47,734 48,037 303 381,566 12.51%
Date reported in measured as of September 30, 2023 (reporting 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*
*GASB Statement No. 68 requires ten years of information be presented in this table.
However, until a full 10-year trend is compiled, the City will present information for those
years for which information is available.
See Independent Auditors’ Report
74
Net Pension
Liability %
Share
Amount of
Proportionate
Share of Net
Pension Liability
Covered
Employee
Payroll
Net Pension
Liabilit % of
Covered Payroll
Plan Fiduciary
Net Position as
a % of Total
Pension Liability
2015 0.3292887% (177,851)$ 202,664$ -87.76% 118.08%
2016 0.2881284% (154,864) 203,554 -76.08% 118.42%
2017 0.3343618% (286,868) 250,204 -114.65% 129.65%
2018 0.3577169% (404,829) 267,230 -151.49% 140.15%
2019 0.3484669% (500,934) 287,660 -174.14% 152.74%
2020 0.3452044% (514,006) 271,530 -189.30% 155.55%
2021 0.3452044% (932,835) 296,518 -314.60% 211.83%
2022 0.3452044% (708,673) 272,249 -260.30% 184.72%
2023 0.3452044% (816,073) 282,527 -288.85% 200.58%
Date reported in measured as of June 30, 2023 (measurement date)
Statutorily
Required
Contributions
Contributions in
Relation to
Statutorily
Required
Contributions
Contribution
(Deficiency)/
Excess
Employer's
Covered
Employee
Payroll
Contribution
Percent of
Covered
Employee
Payroll
2015 17,600$ 16,894$ (706)$ 202,664$ 8.68%
2016 10,318 10,178 (140) 203,554 5.07%
2017 12,445 12,510 65 250,204 4.97%
2018 13,361 13,362 1 267,230 5.00%
2019 14,384 14,383 (1) 287,660 5.00%
2020 9,015 9,015 - 271,530 3.32%
2021 - - - 296,518 0.00%
2022 - - - 272,249 0.00%
2023 - - - 282,527 0.00%
Date reported in measured as of September 30, 2023 (reporting 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*
*GASB Statement No. 68 requires ten years of information be presented in this table.
However, until a full 10-year trend is compiled, the City will present information for those
years for which information is available.
OTHER SUPPLEMENTARY INFORMATION
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
75
Fund Number 03 04 07 08 09 13 15 18
Police High 5
Police Police Drug Small & Other Joint Fire
Recreation Tabernacle Impact Fee DARE Enforcement Grants Grants Equipment
ASSETS Fund Fund Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 26,184$ 77,997$ 295,803$ 21,749$ 16,693$ -$ 66,887$ 1,073,577$
Receivables 500 - - 2,940 - 9,568 - 120,028
TOTAL ASSETS 26,684$ 77,997$ 295,803$ 24,689$ 16,693$ 9,568$ 66,887$ 1,193,605$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 15,686$ 2,727$ -$ 2,950$ -$ -$ -$ 24,308$
Accrued Payroll 1,058 823 - - - 323 - -
Due to Other Funds - - - - - 9,245 - -
Other 15,668 600 - - - - - -
TOTAL LIABILITIES 32,412 4,150 - 2,950 - 9,568 - 24,308
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - - - -
FUND BALANCES (DEFICIT):
Restricted - - 295,803 21,739 16,693 - 66,887 1,169,297
Committed - 73,847 - - - - - -
Unassigned (5,728) - - - - - - -
Total Fund Balances (5,728) 73,847 295,803 21,739 16,693 - 66,887 1,169,297
TOTAL LIABILITIES AND
FUND BALANCES 26,684$ 77,997$ 295,803$ 24,689$ 16,693$ 9,568$ 66,887$ 1,193,605$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
76
Fund Number 19 20 21 22 23 24 28 29
Madison
County Fire ESD Rexburg Legacy Building Geographic
Protection Fire Impact Rexburg Revolving Rapids Flight Safety Information
District Fee Employee Loan Operations Museum Comm Dev Systems
ASSETS Fund Fund Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 1,642,026$ 8,329$ 25,418$ 418,938$ 132,550$ 288,578$ 1,217,757$ -$
Receivables 11,802 - - 1,114,679 1,650 - 780 107,657
TOTAL ASSETS 1,653,828$ 8,329$ 25,418$ 1,533,617$ 134,200$ 288,578$ 1,218,537$ 107,657$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 15,552$ -$ -$ -$ 25,975$ 372$ 4,431$ 11,768$
Accrued Payroll - - - - 1,767 - 14,088 8,770
Due to Other Funds - - - - - - - 87,119
Other - - - - 1,000 - - -
TOTAL LIABILITIES 15,552 - - - 28,742 372 18,519 107,657
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues 11,802 - - - - - - -
FUND BALANCES (DEFICIT):
Restricted 1,626,474 8,329 25,418 - - 288,206 - -
Committed - - - 1,533,617 105,458 - 1,200,018 -
Unassigned - - - - - - - -
Total Fund Balances 1,626,474 8,329 25,418 1,533,617 105,458 288,206 1,200,018 -
TOTAL LIABILITIES AND
FUND BALANCES 1,653,828$ 8,329$ 25,418$ 1,533,617$ 134,200$ 288,578$ 1,218,537$ 107,657$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
77
Fund Number 32 33 36 37 38 39 40 41
Joint City ESD Trails of
Hall/Police Street Arts Paramedic Parks Impact Madison Romance Park
Building Capital Impact Fee Promulgation Care Unit Fee County Theatre Construction
ASSETS Reserve Fund Fund Fund Fund Fund Fund Fund Fund
Cash and Short Term
Investments 1,200,000$ 2,079,432$ 181,725$ -$ 281,771$ 259,875$ 43,885$ 192,387$
Receivables - - - 721,234 150,000 - 200 -
TOTAL ASSETS 1,200,000$ 2,079,432$ 181,725$ 721,234$ 431,771$ 259,875$ 44,085$ 192,387$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable -$ -$ -$ 12,025$ 11,056$ -$ 4,732$ -$
Accrued Payroll - - - 37,816 - - 959 -
Due to Other Funds - - - 79,049 - - - -
Other - - - - - - 4,350 -
TOTAL LIABILITIES - - - 128,890 11,056 - 10,041 -
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - - - -
FUND BALANCES (DEFICIT):
Restricted - 2,079,432 - 592,344 420,715 259,875 - 192,387
Committed 1,200,000 - 181,725 - - - 34,044 -
Unassigned - - - - - - - -
Total Fund Balances 1,200,000 2,079,432 181,725 592,344 420,715 259,875 34,044 192,387
TOTAL LIABILITIES AND
FUND BALANCES 1,200,000$ 2,079,432$ 181,725$ 721,234$ 431,771$ 259,875$ 44,085$ 192,387$
See Independent Auditors’ Report
78
Fund Number 47 48 49 50 51 53-58 81 83
Airport Golf Golf Rexburg
Airport Airport Relocation Course Course LID Cultural Entrepreneurial
Operation Construction Reserve Operations Construction Construction Arts Programs
ASSETS Fund Fund Fund Fund Fund Funds Fund Fund
Cash and Short Term
Investments -$ 42,613$ 1,021,888$ 609,369$ -$ -$ 8,283$ 65,838$
Receivables - 24,336 - 10,315 40,000 - - 29,320
TOTAL ASSETS -$ 66,949$ 1,021,888$ 619,684$ 40,000$ -$ 8,283$ 95,158$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 1,222$ 14,054$ -$ 186,851$ -$ 508,291$ 5,195$ 28,120$
Accrued Payroll 392 - - 15,870 - - 3,088 -
Due to Other Funds 14,141 - - - 151,853 180,872 - -
Other - - - 1,000 - - - -
TOTAL LIABILITIES 15,755 14,054 - 203,721 151,853 689,163 8,283 28,120
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - - - -
FUND BALANCES (DEFICIT):
Restricted - 52,895 - 415,963 - - - -
Committed - - 1,021,888 - - - - 67,038
Unassigned (15,755) - - - (111,853) (689,163) - -
Total Fund Balances (15,755) 52,895 1,021,888 415,963 (111,853) (689,163) - 67,038
TOTAL LIABILITIES AND
FUND BALANCES -$ 66,949$ 1,021,888$ 619,684$ 40,000$ -$ 8,283$ 95,158$
CITY OF REXBURG, IDAHO
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
79
Fund Number 84 85 86 91 93 95
North Community Shop Ambulance City Total
Interchange Safety Fiber with a Capital 501c3 Nonmajor
Construction Lighting Operating Cop Replacement Foundation Governmental
ASSETS Fund Fund Fund Fund Fund Fund Funds
Cash and Short Term
Investments -$ 823,203$ 107,978$ 43,967$ 406,082$ 5,069$ 12,685,851$
Receivables 7,320 29,695 2,400 - - - 2,384,424
TOTAL ASSETS 7,320$ 852,898$ 110,378$ 43,967$ 406,082$ 5,069$ 15,070,275$
LIABILITIES AND
FUND BALANCES
LIABILITIES:
Accounts Payable 2,505$ 9,399$ 110,378$ -$ -$ -$ 997,597$
Accrued Payroll - - - - - - 84,954
Due to Other Funds 4,815 - - - - - 527,094
Other - 85 - - - - 22,703
TOTAL LIABILITIES 7,320 9,484 110,378 - - - 1,632,348
DEFERRED INFLOWS OF RESOURCES:
Unavailable revenues - - - - - - 11,802
FUND BALANCES (DEFICIT):
Restricted - - - 43,967 406,082 5,069 7,987,575
Committed - 843,414 - - - - 6,261,049
Unassigned - - - - - - (822,499)
Total Fund Balances - 843,414 - 43,967 406,082 5,069 13,426,125
TOTAL LIABILITIES AND
FUND BALANCES 7,320$ 852,898$ 110,378$ 43,967$ 406,082$ 5,069$ 15,070,275$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
80
03 04 07 08 09 13 15 18
Police High 5
Police Police Drug Small & Other Joint Fire
Recreation Tabernacle Impact Fee DARE Enforcement Grants Grants Equipment
FundFundFundFundFundFundFundFund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$ -$ -$
Grants and Contributions/Sale of Capacity 36,729 6,641 - 8,500 - 56,170 - -
Fees and Charges 293,656 30,190 56,455 - - - - 118,116
Investment/Interest Income - 1,808 2,348 - 6 - 3,013 22,981
Miscellaneous 641 - - - 13,936 - - -
TOTAL REVENUES 331,026 38,639 58,803 8,500 13,942 56,170 3,013 141,097
EXPENDITURES:
Current:
General and Administrative - - - - - - - -
Public Safety - - - 17,308 1,602 35,674 - -
Parks and Recreation and Arts 415,665 142,189 - - - - - -
Streets - - - - - - - -
Debt Service:
Interest on Debt - - - - - - - -
Principal on Debt - - - - - - - -
Capital Improvements:
General and Administrative - - - - - - - -
Public Safety - - - - - - - 814,391
Parks and Recreation and Arts - 119,241 - - - - 6,350 -
Streets - - - - - - - -
TOTAL EXPENDITURES 415,665 261,430 - 17,308 1,602 35,674 6,350 814,391
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (84,639) (222,791) 58,803 (8,808) 12,340 20,496 (3,337) (673,294)
OTHER FINANCING SOURCES (USES):
Proceeds from Borrowing - - - - - - - -
Transfers In 78,911 234,599 - 8,500 - - - 210,000
Transfers Out - - - - - (20,496) - -
TOTAL OTHER FINANCING
SOURCES (USES)78,911 234,599 - 8,500 - (20,496) - 210,000
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (5,728) 11,808 58,803 (308) 12,340 - (3,337) (463,294)
FUND BALANCES, BEGINNING OF YEAR - 62,039 237,000 22,047 4,353 - 70,224 1,632,591
FUND BALANCES, END OF YEAR (5,728)$ 73,847$ 295,803$ 21,739$ 16,693$ -$ 66,887$ 1,169,297$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
81
19 20 21 22 23 24 28 29
Madison
County Fire ESD Rexburg Legacy Building Geographic
Protection Fire Impact Rexburg Revolving Rapids Flight Safety Information
District Fee Employee Loan Operations Museum Comm Dev Systems
Fund Fund Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes 1,081,481$ -$ -$ -$ -$ -$ -$ -$
Grants and Contributions/Sale of Capacity 110,000 - 1,000 - - 40,380 - 233,080
Fees and Charges - 42,844 - - 478,328 17,765 809,884 233,080
Investment/Interest Income 44,594 795 875 57,141 2,527 79 35,877 -
Miscellaneous - - - - 5,000 5,000 - 555
TOTAL REVENUES 1,236,075 43,639 1,875 57,141 485,855 63,224 845,761 466,715
EXPENDITURES:
Current:
General and Administrative - - - 9,218 - - 867,629 466,715
Public Safety 50 - 703 - - - - -
Parks and Recreation and Arts - - - - 561,972 66,006 - -
Streets - - - - - - - -
Debt Service:
Interest on Debt - - - - - - - -
Principal on Debt - - - - - - - -
Capital Improvements:
General and Administrative - - - - - - 42,890 -
Public Safety 46,303 - - - - - - -
Parks and Recreation and Arts - - - - 174,497 - - -
Streets - - - - - - - -
TOTAL EXPENDITURES 46,353 - 703 9,218 736,469 66,006 910,519 466,715
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES 1,189,722 43,639 1,172 47,923 (250,614) (2,782) (64,758) -
OTHER FINANCING SOURCES (USES):
Proceeds from Borrowing - - - - - - - -
Transfers In - - - - 65,004 15,000 - -
Transfers Out (900,881) (39,997) - - - - - -
TOTAL OTHER FINANCING
SOURCES (USES)(900,881) (39,997) - - 65,004 15,000 - -
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES 288,841 3,642 1,172 47,923 (185,610) 12,218 (64,758) -
FUND BALANCES, BEGINNING OF YEAR 1,337,633 4,687 24,246 1,485,694 291,068 275,988 1,264,776 -
FUND BALANCES, END OF YEAR 1,626,474$ 8,329$ 25,418$ 1,533,617$ 105,458$ 288,206$ 1,200,018$ -$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
82
32 33 36 37 38 39 40 41
Joint City Hall ESD Parks Trails of
Police Street Arts Paramedic Impact Madison Romance Park
Building Capital Impact Fee Promulgation Care Unit Fee County Theatre Construction
Reserve Fund Fund Fund Fund Fund Fund Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$ -$ -$
Grants and Contributions/Sale of Capacity - - - 77,876 179,584 - 10,000 -
Fees and Charges - 200,101 60,261 751,033 167,101 - 39,194 -
Investment/Interest Income - 53,165 42 - 6,956 - - -
Miscellaneous - - - - - - - -
TOTAL REVENUES - 253,266 60,303 828,909 353,641 - 49,194 -
EXPENDITURES:
Current:
General and Administrative - - - - - - - -
Public Safety - - - 812,749 - - - -
Parks and Recreation and Arts - - - - - 4,000 106,475 -
Streets - - - - - - - -
Debt Service:
Interest on Debt - - - - - - - -
Principal on Debt - - - - - - - -
Capital Improvements:
General and Administrative - - - - - - - -
Public Safety - - - - - - - -
Parks and Recreation and Arts - - - - 268,075 - 131,148 75,727
Streets - - - - - - - -
TOTAL EXPENDITURES - - - 812,749 268,075 4,000 237,623 75,727
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 253,266 60,303 16,160 85,566 (4,000) (188,429) (75,727)
OTHER FINANCING SOURCES (USES):
Proceeds from Borrowing - - - - - - - -
Transfers In 400,000 - - - - 60,000 172,473 225,727
Transfers Out - (87,669) (35,004) - (30,000) - - -
TOTAL OTHER FINANCING
SOURCES (USES)400,000 (87,669) (35,004) - (30,000) 60,000 172,473 225,727
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES 400,000 165,597 25,299 16,160 55,566 56,000 (15,956) 150,000
FUND BALANCES, BEGINNING OF YEAR 800,000 1,913,835 156,426 576,184 365,149 203,875 50,000 42,387
FUND BALANCES, END OF YEAR 1,200,000$ 2,079,432$ 181,725$ 592,344$ 420,715$ 259,875$ 34,044$ 192,387$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
83
47 48 49 50 51 53-58 81 83
Airport Golf Golf Rexburg
Airport Airport Relocation Course Course LID Cultural Entrepreneurial
Operation Construction Reserve Operations Debt Service Construction Arts Programs
Fund Fund Fund Fund Fund Funds Fund Fund
REVENUES:
Taxes -$ -$ -$ -$ -$ -$ -$ -$
Grants and Contributions/Sale of Capacity 16,000 173,724 - 70,300 177,650 670,169 3,000 97,550
Fees and Charges 27,614 - - 1,447,123 - - 77,269 3,925
Investment/Interest Income - 1,468 27,755 6,876 800 - - -
Miscellaneous - - - 27 - - - -
TOTAL REVENUES 43,614 175,192 27,755 1,524,326 178,450 670,169 80,269 101,475
EXPENDITURES:
Current:
General and Administrative 70,274 - - - - - - 97,550
Public Safety - - - - - - - -
Parks and Recreation and Arts - - - 1,083,404 - - 248,140 -
Streets - - - - - 1,366,643 - -
Debt Service:
Interest on Debt - - - - 6,215 - - -
Principal on Debt - - - - 78,202 - - -
Capital Improvements:
General and Administrative - 242,481 - - - - - -
Public Safety - - - - - - - -
Parks and Recreation and Arts - - - 311,945 97,200 - 4,000 -
Streets - - - - - 1,842,944 - -
TOTAL EXPENDITURES 70,274 242,481 - 1,395,349 181,617 3,209,587 252,140 97,550
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES (26,660) (67,289) 27,755 128,977 (3,167) (2,539,418) (171,871) 3,925
OTHER FINANCING SOURCES (USES):
Proceeds from Borrowing - - - - 97,200 - - -
Transfers In 16,000 7,944 20,004 50,000 109,413 1,907,879 171,871 15,000
Transfers Out - - - (84,417) - - - -
TOTAL OTHER FINANCING
SOURCES (USES)16,000 7,944 20,004 (34,417) 206,613 1,907,879 171,871 15,000
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES (10,660) (59,345) 47,759 94,560 203,446 (631,539) - 18,925
FUND BALANCES, BEGINNING OF YEAR (5,095) 112,240 974,129 321,403 (315,299) (57,624) - 48,113
FUND BALANCES, END OF YEAR (15,755)$ 52,895$ 1,021,888$ 415,963$ (111,853)$ (689,163)$ -$ 67,038$
CITY OF REXBURG, IDAHO
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
NONMAJOR GOVERNMENTAL FUNDS
September 30, 2023
See Independent Auditors’ Report
84
84 85 86 91 93 95
North Community Shop Ambulance City Total
Interchange Safety Fiber with a Capital 501c3 Nonmajor
Construction Lighting Operating Cop Replacement Foundation Governmental
Fund Fund Fund Fund Fund Fund Funds
REVENUES:
Taxes -$ -$ -$ -$ -$ -$ 1,081,481$
Grants and Contributions/Sale of Capacity 20,914 - - 15,840 402,600 30,000 2,437,707
Fees and Charges - 263,877 - - - - 5,117,816
Investment/Interest Income - 26,413 - 1,558 3,482 - 300,559
Miscellaneous - - - - - - 25,159
TOTAL REVENUES 20,914 290,290 - 17,398 406,082 30,000 8,962,722
EXPENDITURES:
Current:
General and Administrative - - 244,245 - - - 1,755,631
Public Safety - - - 17,313 - - 885,399
Parks and Recreation and Arts - - - - - - 2,627,851
Streets - 60,437 - - - - 1,427,080
Debt Service:-
Interest on Debt - - - - - - 6,215
Principal on Debt - - - - - - 78,202
Capital Improvements:-
General and Administrative - - - - - - 285,371
Public Safety - - - - - - 860,694
Parks and Recreation and Arts - - - - - - 1,188,183
Streets 20,914 50,325 - - - - 1,914,183
TOTAL EXPENDITURES 20,914 110,762 244,245 17,313 - - 11,028,809
EXCESS OF REVENUES OVER
(UNDER) EXPENDITURES - 179,528 (244,245) 85 406,082 30,000 (2,066,087)
OTHER FINANCING SOURCES (USES):
Proceeds from Borrowing - - - - - - 97,200
Transfers In - - 183,842 - - - 3,952,167
Transfers Out - - - - - (30,000) (1,228,464)
TOTAL OTHER FINANCING
SOURCES (USES)- - 183,842 - - (30,000) 2,820,903
EXCESS (DEFICIENCY) OF REVENUES
AND OTHER SOURCES OVER
EXPENDITURES AND OTHER USES - 179,528 (60,403) 85 406,082 - 754,816
FUND BALANCES, BEGINNING OF YEAR - 663,886 60,403 43,882 - 5,069 12,671,306$
FUND BALANCES, END OF YEAR -$ 843,414$ -$ 43,967$ 406,082$ 5,069$ 13,426,122$
85
490 First American Circle Rexburg, ID 83440 bus: 208‐356‐3677 fax: 208‐356‐3689 www.ruddco.com
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 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, 2023, 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 DATE, 2024.
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.
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 and therefore, material weaknesses or significant
deficiencies may exist that were not identified. We identified a deficiency in internal control,
described in the accompanying schedule of findings and responses as item 2023-001.
86
Report on 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 is required to be reported under Government Auditing Standards.
This report represents a reissuance of a previously issued report dated April 16, 2024. Significant
changes include the presentation of two additional major funds previously reported in Other
Governmental Funds, and the presentation of leases receivable and the accompanying deferred
lease revenue, which was previously reported in the government-wide financials only, and is now
also reported in the General Fund financial information. The result of these changes did not require
an adjustment to beginning fund balance or net position for the year.
City of Rexburg, Idaho’s Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City’s
response to the findings identified in our audit and described in the accompanying schedule of
findings and responses. The City of Rexburg, Idaho’s responses were not subjected to the other
auditing procedures applied in the audit of the financial statements and, accordingly, we express
no opinion on the response.
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 3, 2025
CITY OF REXBURG, IDAHO
Schedule of Findings and Responses
For the Year Ended September 30, 2023
87
Section I – Financial Statement Findings
2023-001 APPLICATION OF GASB STANDARDS
Criteria: Management is ultimately responsible for the proper preparation and
presentation of their financial statements in accordance with generally
accepted accounting principles and Government Auditing Standards.
Condition: Two major funds were not identified during the drafting and finalization
process and were not presented in accordance with standards in the initial
draft of the financial statements for fiscal year 2023. In addition, leases
receivable were included only in the government-wide funds and should
have been included in the fund level financial statements.
Cause: Reliance was placed on auditors to identify and assist with drafting the
financial statements, and changes in the funds were not recognized and
adjusted as required.
Effect: The financial statements were not appropriately presented in accordance
with generally accepted accounting principles and Government Auditing
Standards.
Recommendation: We recommend that the City verify the proper presentation and
completeness of information presented in the financial statements. This is
not limited to major fund presentation or the presentation of leases as there
were also other issues such as footing and incomplete information related
to the GASB 87 lease standard.
View of Responsible
Officials: Management has in past years decided not to move construction funds,
such as the fiber construction or the LID Construction or LID Debt
Service Funds in and out of Major funds over the past several years
because of the inconsistency it had created in finding information on the
governmental fund financial statements versus the Non-Major
Governmental Combining Statements. We had thought when the audit
was adopted for Fiscal Year 2023 that we were okay to continue that
practice, but new personnel at Rudd and Company pointed out the
concerns regarding this and we have decided to go ahead and move those
funds in and out of major vs. non-major as necessary in the Fiscal Year
2023 financial statements and in Fiscal Years going forward.