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HomeMy WebLinkAboutCity of Rexburg 9.30.24 - Financial Statements - Final BASIC FINANCIAL STATEMENTS AND SUPPLEMENTARY INFORMATION WITH INDEPENDENT AUDITOR’S REPORT YEAR ENDED SEPTEMBER 30, 2024 CITY OF REXBURG, IDAHO Table of Contents September 30, 2024 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 Sheets – Governmental Funds ..........................................................................................24 Reconciliation of the Balance Sheet – 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 – Governmental Funds to the Statement of Activities .............................................................................................................27 Statement of Net Position – Proprietary Funds ..............................................................................28 Statement of Revenues, Expenditures, and Changes in 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 Funds .......................................................70 Budgetary Comparison Schedule – LID Construction Funds........................................................71 Schedule of Employer’s Share of Net Pension Liability and Employer Contributions – PERSI Base Plan ..........................................................................72 CITY OF REXBURG, IDAHO Table of Contents (Continued) September 30, 2024 Schedule of Employer’s Share of Net Pension Liability and Employer Contributions – PERSI Base FRF Plan ..................................................................73 Schedule of Employer’s Share of Net Pension Liability and Employer Contributions – 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 Schedule of Expenditures of Federal Awards ...........................................................................85 Notes to the Schedule of Expenditures of Federal Awards ......................................................86 Independent Auditors’ Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of Financial Statements Performed in Accordance with Government Auditing Standards................... 87-88 Independent Auditors’ Report on Compliance for Each Major Program and on Internal Control over Compliance Required by the Uniform Guidance .................... 89-91 Schedule of Findings and Questioned Costs ........................................................................ 92-93 Schedule of Prior Year Findings and Questioned Costs ..........................................................94 Corrective Action Plan ................................................................................................................95 1 490 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, 2024, 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, 2024, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. 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 of Rexburg, Idaho, and to meet our other ethical responsibilities, in accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinions. Other Matters This report represents a reissuance of a previously issued report dated March 19, 2025. 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 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. 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 2 presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City of Rexburg, Idaho’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 of Rexburg, Idaho’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. 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, 3 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 of Rexburg, Idaho’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements and schedule of expenditures of federal awards, as required by the Title 2 U.S. Code of Federal Regulations, Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards, 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 March 19, 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 solely 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 the effectiveness of the City of Rexburg, Idaho’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City of Rexburg, Idaho’s internal control over financial reporting and compliance. Rexburg, Idaho March 19, 2025 4 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, 2024. 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, 2024 by $175,009,299.  Of this amount, $3,731,793 of unrestricted net position and $38,861,927 of restricted assets is available to meet the City’s ongoing obligations to citizens and creditors.  The City’s net position increased $14,846,785 as a result of this year’s operations, which includes an increase of governmental type net position by $8,858,737 and of business-type net position by $5,988,048.  At fiscal year end, the City’s governmental funds reported combined ending fund balances of $24,327,911, an increase of $1,917,720 from last year’s adjusted fund balance.  The General Fund Balance was $5,860,191 or 38.54% of the total General Fund Expenditures and Fund Transfers. This leaves just under a 4-6-month reserve in place. This is a 5.36% decrease over the prior year. Of this balance, $1,000,000 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). 5 The government-wide financial statements also include separately the financial information of the Rexburg Redevelopment Agency (Rexburg Urban Renewal Agency) as a component unit. 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, LID 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 82 active funds, 75 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, 2023 and September 30, 2024, Net Position changed as follows: Governmental Activities Business-type Activities All Activities Net Position 9/30/23 98,504,358 62,658,156 161,162,514 Prior Period Adjustment (1,000,000) (1,000,000) Increase in Net Position 8,858,737 5,988,048 14,846,785 Net Position 9/30/24 106,363,095 68,646,204 175,009,299 Percentage Increase 8.99% 9.56% 9.21% 6 Large Capital Item Expenses (over $65,000) included: CONSTRUCTION COSTS-CITY SHARE LID 53 PROJECTS 2,260,547$ CONTRIBUTED CAPITAL FROM DEVELOPERS TO STREET 1,984,823 CRABS RECONSTRUCT PROJECT-PIONEER, YELLOWSTONE, U 1,892,879 CONCRETE REPAIR-N WATER WELL-RES #2/#3 859,456 LARGE STREET LIGHTING PROJECTS 827,179 MASONRY (REPOINTING) TABERNACLE 769,714 LID WASTEWATER PROJECTS 706,594 WW EXTENSION-E ON UNIV FROM 5TH W 575,722 CONSTRUCTION COSTS-CITY SHARE FINAL LID 52 502,017 NEW TRAFFIC SIGNAL AT TREJO/YELLOWSTONE-PH I 447,195 7TH S RR CROSSING UPGRADE FINAL- URA PROJECT 442,210 SANITATION TRUCK 281,466 NEW SANITATION SHOP PH I 231,141 NEW WELL CONSTRUCTION -THORNTON FOR FIRE DIST 226,316 WASTEWATER TREATMENT PLANT UPGRADE 225,713 RADIO SYSTEM UPGRADES FIRE DEPT 224,499 RADIO SYSTEM UPGRADES POLICE DEPT 224,499 AIRPLANE LEGACY FLIGHT MUSEUM 215,000 E. PARKWAY-BRIDGE DESIGN-7TH N-GRANT 210,757 NEW SIDEWALK-7TH S-US20 TO 12TH WEST-GRANT 205,394 CHANGE TO RADIO READS IN WATER DEPT 199,904 SEAL COAT/CHIP OR SLURRY SEAL STREETS 175,271 INTERCHANGE DESIGNS/LANDSCAPE STREETS 167,277 WASTEWATER LINE REPLACEMENT PROJECTS 150,507 WASTEWATER GRAVITYLINE REPLACEMENTS 149,182 SURVEILANCE/ACCESS CONTROL-CONNECT CITY ASSET 144,037 ENVIRONMENTAL ASSESSMENT AIRPORT 131,027 FIBER INITIATIVE CONSTRUCTION FINAL 129,106 TETON RIVER PARK DEVELOPMENT PLANNING 128,660 LED STREET LIGHT UPGRADES-CITY WIDE 116,549 WASTEWATER SKID STEER/ACCESSORIES 116,131 MASONRY (REPOINTING) ROMANCE THEATER 111,818 WASTEWATER OVERSIZING 111,778 BRUSH TRUCK FIRE DEPT 106,898 SERVICE TRUCK FIRE DEPT 100,199 WATER FACILITIES STUDY 91,333 LID WATER PROJECTS 89,622 GREENS MOWER GOLF 85,981 DURAPATCHER/CRACK SEALING EQUIPMENT STREETS 78,291 TRUCK FIRE DEPT 71,384 ASPHALT/CONCRETE FIRE DEPT 68,133 Also see Note #3 on page 41 to 42. 7 Statement of Net Position Comparison (2024 vs. 2023): 2024 2023 2024 2023 2024 2023 Current Assets 31,135,588$ 29,064,957$ 26,516,899$ 22,546,835$ 57,652,487$ 51,611,792$ 6,040,695$ 12% (1) Capital, Noncurrent Asets & Deferred Outflows of Resources 92,148,288 84,511,577 53,474,412 51,041,167 145,622,700 135,552,744 10,069,956 7% Total Assets 123,283,876 113,576,534 79,991,311 73,588,002 203,275,187 187,164,536 16,110,651 9% Current Liabilities 5,692,262 4,540,089 2,170,451 832,812 7,862,713 5,372,901 (2,489,812) -46% (2) Noncurrent Liabilities and Deferred Inflows of Resources 11,228,519 10,532,090 9,174,656 10,097,033 20,403,175 20,629,123 225,948 1% Total Liabilities 16,920,781 15,072,179 11,345,107 10,929,845 28,265,888 26,002,024 (2,263,864) -9% Capital Assets, Net of Related Debt 87,025,490 78,351,728 45,390,089 41,795,923 132,415,579 120,147,651 12,267,928 10% (3) Restricted 15,605,812 15,235,008 23,256,115 20,862,234 38,861,927 36,097,242 2,764,685 8% Unrestricted 3,731,793 4,917,619 - - 3,731,793 4,917,619 (1,185,826) -24% (4) Total Net Position 106,363,095$ 98,504,355$ 68,646,204$ 62,658,157$ 175,009,299$ 161,162,512$ 13,846,787$ 9% Governmental Activities Favorable (Unfavorable) Change Percent Change All ActivitiesBusiness-type Activities (1) The cash increased significantly in the business-type funds because many budgeted construction projects were deferred again (2)We received several grants in advance in the Wastewater Plant Construction Fund and General Fund that accounted for a large portion of the increase (3) We completed several large capital projects in streets, the Tabernacle, and some smaller projects in water and wastewater (4) The city spent down the general fund reserve by over $1 million in FY 2024 and included the FY 2025 carryover in restricted this year Notes to the Statement of Net Position Comparison Because the City has not been required by the Governmental Accounting Standards Board (GASB) to list streets and storm sewers acquired before October 1, 2003, those items are not included in the Beginning Net Asset amounts under Governmental Activities. All acquisitions of streets and storm sewers on or after that date will be included. The City may decide in the future to estimate the historical cost of those previously acquired streets and storm sewers and adjust the beginning balances at that time. 8 Changes in Long-Term Liabilities: A summary of long-term transactions of the City for the year ended September 30, 2024, is as follows: 9/30/2023 Obligations Incurred Obligations Paid 9/30/2024 Due Within One Year Governmental Activities: Accrued Compensated Absences (Note 6) 547,329$ 499,541$ -$ 1,046,870$ 1,046,870$ Lease Liability (Note 11) 528,021 311,319 - 839,340 282,397 Financed Purchase Obligations (Note 12) 226,165 - (51,679) 174,486 51,682 Contracts Payable (Note 13) 171,471 - (34,327) 137,144 98,985 Net Pension Liability (Note 14) 8,883,839 - (332,797) 8,551,042 - Governmental Activities Long-Term Liabilities 10,356,825$ 810,860$ (418,803)$ 10,748,882$ 1,479,934$ Business-type Activities: Accrued Compensated Absences (Note 6) 72,368$ 62,682$ -$ 135,050$ 135,050$ Net Pension Liability (Note 14) 1,310,065 - (28,234) 1,281,831 - Water DEQ Loan (Note 10) 7,139,600 - (194,847) 6,944,753 198,617 Wastewater Revenue Bonds (Note 10) 1,575,000 - (785,000) 790,000 790,000 Business-type Activities Long-Term Liabilities 10,097,033$ 62,682$ (1,008,081)$ 9,151,634$ 1,123,667$ Total Long-Term Liabilities 20,453,858$ 873,542$ (1,426,884)$ 19,900,516$ 2,603,601$ 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. The next page contains a comparison of the changes in the net position from 2023 to 2024. 9 Statement of Changes in Net Position Comparison (2024 vs. 2023): 2024 2023 2024 2023 2024 2023 Revenues: Program Revenues: Charges for Services & Taxes General and Administrative 6,912,972$ 4,550,401$ -$ -$ 6,912,972$ 4,550,401$ 2,362,571$ 52% (1) Public Safety 3,421,776 3,275,581 - - 3,421,776 3,275,581 146,195 4% Parks, Golf, Recreation and Arts 2,455,966 2,547,992 - - 2,455,966 2,547,992 (92,026) -4% Streets 2,757,459 5,945,274 - - 2,757,459 5,945,274 (3,187,815) -54% (2) Water - - 4,056,599 3,542,371 4,056,599 3,542,371 514,228 15% (3) Waste Water - - 5,974,980 6,471,556 5,974,980 6,471,556 (496,576) -8% Sanitation - - 3,356,040 3,247,886 3,356,040 3,247,886 108,154 3% Subtotal 15,548,173 16,319,248 13,387,619 13,261,813 28,935,792 29,581,061 (645,269) -2% General and Administrative 262,443 311,346 - - 262,443 311,346 (48,903) -16% Public Safety 3,312,141 3,014,876 - - 3,312,141 3,014,876 297,265 10% Parks, Golf, Recreation and Arts 251,975 119,427 - - 251,975 119,427 132,548 111% Subtotal 3,826,559 3,445,649 - - 3,826,559 3,445,649 380,910 11% General and Administrative 523,375 1,585,845 - - 523,375 1,585,845 (1,062,470) -67% (4) Public Safety 40,000 679,611 - - 40,000 679,611 (639,611) -94% (5) Parks, Golf, Recreation and Arts 311,888 682,459 - - 311,888 682,459 (370,571) -54% (6) Streets 5,832,247 4,319,572 - - 5,832,247 4,319,572 1,512,675 35% (7) Water - - 1,717,627 520,734 1,717,627 520,734 1,196,893 230% (8) Waste Water - - 3,248,453 652,247 3,248,453 652,247 2,596,206 398% (9) Subtotal 6,707,510 7,267,487 4,966,080 1,172,981 11,673,590 8,440,468 3,233,122 38% General Revenues Property Taxes Levied for General Purposes 7,804,168 6,345,053 - - 7,804,168 6,345,053 1,459,115 23% (10) State Taxes 8,202,338 3,992,847 - - 8,202,338 3,992,847 4,209,491 105% (11) Investment Earnings 1,811,426 558,629 1,220,730 486,144 3,032,156 1,044,773 1,987,383 190% (12) Miscellaneous 653,897 - 124,328 33,377 778,225 33,377 744,848 2232% (13) Proceeds from (Loss on) Sale of Capital Assets (101,712) - (886,333) - (988,045) - (988,045) Subtotal 18,370,117 10,896,529 458,725 519,521 18,828,842 11,416,050 7,412,792 65% Total Revenues 44,452,359 37,928,913 18,812,424 14,954,315 63,264,783 52,883,228 10,381,555 20% Expenses General and Administrative 8,890,069 8,956,396 - - 8,890,069 8,956,396 (66,327) -1% Public Safety 16,176,642 12,924,779 - - 16,176,642 12,924,779 3,251,863 25% (14) Parks, Golf, Recreation and Arts 5,038,894 4,740,972 - - 5,038,894 4,740,972 297,922 6% Streets 5,449,060 6,145,536 - - 5,449,060 6,145,536 (696,476) -11% (15) Interest Expense (Unallocated) 38,957 - - - 38,957 - 38,957 Water - - 4,064,530 3,879,723 4,064,530 3,879,723 184,807 5% Waste Water - - 5,617,805 5,266,456 5,617,805 5,266,456 351,349 7% Sanitation - - 3,142,041 2,930,925 3,142,041 2,930,925 211,116 7% Total Expenses 35,593,622 32,767,683 12,824,376 12,077,104 48,417,998 44,844,787 3,573,211 8% Increase in Net Positions 8,858,737 5,161,230 5,988,048 2,877,211 14,846,785 8,038,441 6,808,344 85% Net Position - Beginning, restated 97,504,358 93,343,125 62,658,156 59,780,945 160,162,514 153,124,070 7,038,444 5% Net Position - Ending 106,363,095$ 98,504,355$ 68,646,204$ 62,658,156$ 175,009,299$ 161,162,511$ 13,846,788$ 9% Percent Change Operating Grants and Contributions Capital Grants and Contributions All ActivitiesGovernmental Activities Business-type Activities Favorable (Unfavorable) Change 10 (1) (2) (3) (4) (5) (6) (7) (8) (9) (10) (11) (12) (13) (14) (15) Saw a large increase in state fuel tax. Had categorized something incorrect in prior year Continue to see a large decrease in Road and Bridge Property Taxes from the County. Had categorized something incorrect in prior year Fewer Urban Renewal contributions received for fiber projects Had a large increase in contributed assets and received large state grants for projects Fewer Urban Renewal contributions received for park projects Had received a capital grant in prior year from Madison County and a contribution for ambulance capital reserve Fewer Urban Renewal contributions received for fiber projects Did not complete as many street projects as compared to the prior year Added personnel in police, wages increased for all employees, and more wildland service occurred compared to prior year Recategorized sale of assets to misc. from charges for services Continued to see increased investment rates over the prior year and we reinvested assets at a much higher interest rate Saw substantial growth with hookups and rates had increased for this service Notes to the Statement of Changes in Net Position Comparison Recategorized Property taxes for Fire District to here and had increase in general fund property taxes Received a large grant for the headworks project and contributed capital increased significantly as well as capacity fees Contributed assets increased significantly as well as capacity fees 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 are 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 $39,234 was taken in as parks reservation fees in 2024. 11 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 2024, a transfer of $5,728 from the general fund was made to subsidize 2024 losses in the Recreation Program Fund. We anticipate the general fund subsidy to the Recreation Program Fund to drop considerably or go away over the next few years as we eliminated some programs with large losses and raised some rates to help this fund sustain itself in the future. 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 2024. Major capital improvements continued to be made in 2024 at Teton Lakes Golf Course. In 2024 the operating fund of the water park Rexburg Rapids experienced an operating loss of $55,818. In 2024, the fourteen-year combined operating loss reached an amount of $215,278, which means Rexburg Rapids operated with an average loss of $15,377 per year in its first fourteen seasons. The City Council also transferred $25,008 from the general fund in 2024 that will be kept in reserve for future major capital projects or repairs at the water park. The capital reserve carryover was $49,640 at fiscal year-end 2024. 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 over $1.33 million in 2024 by the general fund. Major capital projects occurred at the Tabernacle with the repointing project on the outside of the building and will continue 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 the needed street repairs/replacement more quickly. The street operations fund transferred nearly $3.9 million to the Street reconstruction fund for future projects in 2024. 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 helped eliminate odors and with the disposal of bio-solids, and added 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. Our last bond payment will be next year in 2025. 12 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 $3,825,538, ending the year with a balance of $24,818,314, which can be seen on the Statement of Net Position. The City of Rexburg provides wastewater treatment services to the City of Sugar City and the City of Teton at a per gallon charge that includes operating costs. Both cities have provided their share of capital up front through the payment of capitalization fees that reserve certain amounts of capacity for their usage. Those two cities together provide 6.69% of the total monthly-billed revenue for the wastewater department. Sewer rates were last increased on October 1, 2024. Water rates were last increased on October 1, 2024. Sanitation rates were last increased on October 1, 2024. 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 the current year cash flows and balances. Such information is useful in assessing the City’s current year financing requirements. Unassigned fund balances that are not held for emergencies or cash flow purposes, may serve as a useful measure of the City’s net resources available for spending at the end of the fiscal year that could be added to expected revenues for the following fiscal year. 13 The General Fund Balance (see page 67) decreased by $1,091,141 during the year. The Street Funds Balance (see page 68) increased by $1,020,748, leaving a fund balance of $4,754,383 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. The Emergency Services Fund (see page 69) 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 $278,325 over budget. The Local Improvement District (LID) Debt Service Funds (see page 70) balance decreased by $152,238 during the year. This fund balance changes each year as LID’s are paid off and new LID’s are added. The Local Improvement District (LID) Construction Funds (see page 71) increased by $689,163. The city attempts to close out these construction funds at the end of each year if they can. Police, Fire, Parks and Street Development Impact Fees combined were up in 2024 over 2023 and the city collected in the amounts of $61,244, $33,618, $159,492, and $530,017, respectively, totaling $784,371 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 2024, the Police Impact Fee Fund was at $360,247. We hope to construct 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 $3,022, which will help fund the future replacement of fire engines and expansion or addition of fire stations. The Parks Impact Fee Fund balance was $538,703 and is being accumulated for future park projects. The Street Impact Fees Fund balance available to be used for qualified street projects was $2,251,792. 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. We plan to update the capital improvement plans and impact fee analysis in 2025. The Joint Fire Equipment Fund had a positive fund balance of $1,435,018, which comes from contributions by the City and the Madison County Fire Protection District. These funds are for future purchases of fire equipment and facilities. The GIS (Geographic Information System) Fund was first created in 2004 to track the funding of the joint City/County GIS Department on a 50/50 financing split. The golf 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 carryover of $602,667 and much of this will go towards future capital projects. The Golf Construction fund carried over $41,601 and we plan to increase this fund balance to replace the irrigation systems at Teton Lakes in five or more years. There was a transfer of $59,196 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 City paid off its share of the deficit for the middle 9 at Teton Lakes in 2024. 14 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. 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 $4,385,682, of which $43,463 was due to grants and contributed assets from developers. The Utility Operations Funds increased in cash and investments by $1,529,312, ending the year with a balance of $17,163,782 in cash and investments. The Sanitation Fund ended with a balance of $2,222,354. The Water Operation Fund ended with a balance of $6,905,648. The Wastewater Operations Fund ended with a balance of $8,035,780. The Water Capital Reserve and Capital Construction fund ended with a combined balance of $2.94 million in cash and investments. The Wastewater Capital Reserve and Wastewater Treatment Plant Construction fund ended with a combined balance of $4.70 million in cash and investments. GENERAL FUND BUDGETARY HIGHLIGHTS The City strives to maintain a total general fund committed fund balance equal to a minimum of 25%, or greater, of general fund budgeted expenditures for necessary cash flow, for unforeseen emergencies, and to mitigate current and future risks. At the end of 2024, the fund balance was 30.69% of the 2024 actual expenses. The city expects this fund balance to continue to decrease over the next few years as it anticipates saving for expansion of or moving of the police station and constructing a new municipal building along with some other large capital expenditures for our historical buildings. A large portion of this carryover is also typically used as a fund balance carryover in the budgeted revenues to balance the budget from year to year. Included in the fund balance is the savings/reserve for the health/dental insurance. The City plans to move that out into a trust fund once the decision is made to move forward with a self-insured plan at some future date. Revenues Total Budget of Revenues 19,230,300$ Budgeted Cash Carryover (Deficit) 1,000,000 Budgeted Revenues Expected Net of Carryover 18,230,300 Actual Revenues Received (including transfers in) 18,286,858 Surplus (Deficit) of Revenues vs. Budget (943,442) Expenditures Total Budget of Expenditures 19,230,300 Actual Expenditures (including transfers out) 19,377,999 Under (Over) Budget (147,699) Excess (Defiiciency) of Revenues over Expenditures (1,091,141) Fund Balance Beginning Fund Balance 6,951,332 Ending Fund Balance 5,860,191$ 15 However, some individual accounts or departments in the general fund showed variations that are notable ($65,000 or more): Significant Revenues Overage (Shortage) Sales Tax (418,326)$ Investments/Unrealized Gain (Loss) 448,871 Federal Grant - Police (99,677) Federal Grant - Forestry (500,000) Police Admin* - GASB Lease entry Vehicles 636,000 Significant Expenditures Under (Over) Budget Shop-Parks-project deferred 135,000$ Porter Park Irrigation Project not approved-Federal Grant 500,000 Police Admin*- Offset by Lease entry above-net ($72,904) (708,904) Transfer to Tabernacle (172,567) Transfer to Joint Fire Operations (92,259) Transfer to Parks Capital Reserve-Deferred Pickle Ball Proj. 202,600 STREET FUND BUDGETARY HIGHLIGHTS Revenues Total Budget of Revenues 13,640,200$ Actual Revenues Received (including transfers in) 16,399,980 Surplus (Deficit) of Revenues vs. Budget 2,759,780 Expenditures Total Budget of Expenditures 13,640,200 Actual Expenditures (including transfers out) 15,379,232 Under (Over) Budget (1,739,032) Excess (Defiiciency) of Revenues over Expenditures 1,020,748 Fund Balance Beginning Fund Balance 3,733,635 Ending Fund Balance 4,754,383$ 16 However, some individual accounts showed variations that are notable ($65,000 or more): Significant Revenues Overage (Shortage) Property Tax-County Road and Bridge (255,091)$ Franchise Fees 151,760 State Highway User Funds - Fuel Tax 1,244,410 Federal Grant (622,254) Misc. Revenues 76,317 Sale of Assets (119,527) Transfer in from Street Operating Fund 2,226,148 Significant Expenditures Under (Over) Budget Fund Transfer from Street Operations to Street Repair Fund (1,976,148)$ Street Sweeper 382,700 300,000 Brine Equipment/Truck 75,000 164,421 Fund Transfer from Street Replacement to LID construction (373,585) Contributed Capital (new finished streets) (1,484,823) Reconstruction of Yellowstone, Pioneer, Univ. Grader 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 40% of the net costs during the past fiscal year. The City and the Madison Fire District each paid about 38% and 22% respectively. ESD Operating Fund Revenues and Expenses were both approximately $278,323 over budget – both because this fund is usually zeroed out at the end of the year and any savings or overruns are shared by the three entities immediately. The City’s share of the net expenses was $1,936,659 of a $1,844,400 budget, or $92,259 over budget. 17 LID CONSTRUCTION FUNDS BUDGETARY HIGHLIGHTS Revenues Total Budget of Revenues 2,950,000$ Actual Revenues Received (including transfers in) 4,322,634 Surplus (Deficit) of Revenues vs. Budget 1,372,634 Expenditures Total Budget of Expenditures 2,950,000 Actual Expenditures (including transfers out) 3,633,471 Under (Over) Budget (683,471) Excess (Defiiciency) of Revenues over Expenditures 689,163 Fund Balance Beginning Fund Balance (689,163) Ending Fund Balance -$ LID DEBT SERVICE FUNDS BUDGETARY HIGHLIGHTS Revenues Total Budget of Revenues 694,700$ Actual Revenues Received (including transfers in) 588,093 Surplus (Deficit) of Revenues vs. Budget (106,607) Expenditures Total Budget of Expenditures 694,700 Actual Expenditures (including transfers out) 740,331 Under (Over) Budget (45,631) Excess (Defiiciency) of Revenues over Expenditures (152,238) Fund Balance Beginning Fund Balance (1,831,551) Ending Fund Balance (1,983,789)$ It is typical for a new LID debt service fund to be created each year and in some years to close out an LID. We have up to 20 individual debt service LID funds at a time consolidated into this report. 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. 18 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 2024 increased by approximately 23% or $13.55 million dollars compared to 2023. This was due in large part to more street construction projects/costs and a large increase in fund transfers with many departments such as water and wastewater doing large projects. We did see a large decrease caused by a significant drop in the cost of fiber construction. 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, Fuel 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 2024 increased by 29% or over $18.1 million dollars compared to 2023. Federal and State grants increased over $2.6 million. Capital reserves and impact fees also grew by over 92%, which is a sign of significant growth occurring in our city in the last year. Investment earnings also grew substantially by over $1.6 million. Fund Transfers increased significantly from the prior year with more projects. 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 include the Police, Fire, and Ambulance Departments, comprise about 35% 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 6%, leaving approximately 25% for the rest of the departments or categories. The operating expenses increased by approximately $4.3 million or 11% as compared to 2023, with the largest increase coming from public safety of about 26.5% or $3.1 million. Police expenses increased approximately $1.6 million and Emergency Services approximately $1.5 million. The utility operating funds combined had an increase of $1.8 million. All other departments had less significant increases or decreases. Fiber expenses decreased significantly. 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 28% of the total. Property Tax, State Taxes (with the exception of the fuel 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 13% or $5.4 million as compared to 2023, with the largest increase occurring in the fuel taxes largely due to a one-time additional allocation of over $1 million for streets. Miscellaneous revenues saw a large increase in revenue of over $1.4 million primarily because of a large increase in Wildland Revenues in 2024 compared to the prior year. The utility revenues increased by over $1 million as well. We also saw a significant increase in permits and licenses of over 55% due to a large increase in building permits obtained in 2024 as compared to the prior year. The other operating increases were less dramatic in other areas. BASIC FINANCIAL STATEMENTS CITY OF REXBURG, IDAHO STATEMENT OF NET POSITION GOVERNMENT WIDE September 30, 2024 The Accompanying Notes are an Integral Part of the Financial Statements 22 Component Unit (Rexburg Governmental Business-type Urban Renewal Activities Activities Total Agency) ASSETS Current Assets: Cash and Investments 23,409,352$ 24,818,314$ 48,227,666$ 8,564,634$ Receivables 7,592,042 1,678,193 9,270,235 13,255 Accrued Interest Receivable-Leases 493 - 493 - Short Term Lease Receivable 74,736 - 74,736 - Supplies inventory 58,965 20,392 79,357 - Total Current Assets 31,135,588 26,516,899 57,652,487 8,577,889 Noncurrent Assets: Revolving Loan Receivable 1,160,449 - 1,160,449 - Long Term Lease Receivable 234,809 - 234,809 - Capital Assets: Capital Assets, net 86,909,509 53,124,841 140,034,350 1,986,562 Right of Use - Lease, net 1,024,458 - 1,024,458 - Right of Use - SBITAs, net 242,493 - 242,493 - Net Capital Assets 88,176,460 53,124,841 141,301,301 1,986,562 Total Noncurrent Assets 89,571,718 53,124,841 142,696,559 1,986,562 TOTAL ASSETS 120,707,306 79,641,740 200,349,046 10,564,451 Deferred Outflows - Related to Pensions 2,576,570 349,571 2,926,141 - TOTAL ASSETS AND DEFERRED OUTFLOWS 123,283,876$ 79,991,311$ 203,275,187$ 10,564,451$ LIABILITIES Current Liabilities: Accounts Payable 4,828,434$ 1,071,343$ 5,899,777$ 691,247$ Accrued Payroll Liability 714,595 85,099 799,694 - Accrued Interest Payable 17,734 4,347 22,081 - Deferred Revenue Payable 76 - 76 - Grants Received in Advance - 730,000 730,000 - Other 131,423 279,662 411,085 - Total Current Liabilities 5,692,262 2,170,451 7,862,713 691,247 Noncurrent Liabilities: Due in less than one year Accrued Compensated Absences 1,046,870 135,050 1,181,920 - Lease Liability 282,397 - 282,397 - Financed purchase 51,682 - 51,682 - Contracts Payable 98,985 - 98,985 - Long-term Debt - 988,617 988,617 191,802 Due in more than one year Lease Liability 556,943 - 556,943 - Financed purchase 122,804 - 122,804 - Contracts Payable 38,159 - 38,159 - Long-term Obligations - 6,746,136 6,746,136 2,431,603 Net Pension Liability 8,551,042 1,281,831 9,832,873 - Total Noncurrent Liabilities 10,748,882 9,151,634 19,900,516 2,623,405 TOTAL LIABILITIES 16,441,144 11,322,085 27,763,229 3,314,652 DEFERRED INFLOWS OF RESOURCES Landlord Leases Deferred Inflows 290,385 - 290,385 - Pension Deferred Inflows 189,252 23,022 212,274 - TOTAL DEFERRED INFLOWS OF RESOURCES 479,637 23,022 502,659 - TOTAL LIABILITIES AND DEFERRED INFLOWS OF RESOURCES 16,920,781$ 11,345,107$ 28,265,888$ 3,314,652$ NET POSITION Invested In Capital Assets, Net of Related Debt 87,025,490$ 45,390,089$ 132,415,579$ 1,986,562$ Restricted for: Capital Projects 13,760,005 7,068,997 20,829,002 4,910,864 Debt Service - 988,617 988,617 278,897 Intergovernmental Agreement 1,845,807 - 1,845,807 - Operations - 15,198,501 15,198,501 73,476 Unrestricted 3,731,793 - 3,731,793 - TOTAL NET POSITION 106,363,095$ 68,646,204$ 175,009,299$ 7,249,799$ Primary Government CITY OF REXBURG, IDAHO STATEMENT OF ACTIVITIES GOVERNMENT WIDE For the year ended September 30, 2024 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 8,890,069$ 6,912,972$ 262,443$ 523,375$ (1,191,279)$ -$ (1,191,279)$ -$ Public Safety 16,176,642 3,421,776 3,312,141 40,000 (9,402,725) - (9,402,725) - Parks, Golf, Recreation and Arts 5,038,894 2,455,966 251,975 311,888 (2,019,065) - (2,019,065) - Streets 5,449,060 2,757,459 - 5,832,247 3,140,646 - 3,140,646 - Interest Expense (Unallocated) 38,957 - - - (38,957) - (38,957) - Total Governmental Activities 35,593,622 15,548,173 3,826,559 6,707,510 (9,511,380) - (9,511,380) - BUSINESS-TYPE ACTIVITIES Water 4,064,530 4,056,599 - 1,717,627 - 1,709,696 1,709,696 - Waste Water 5,617,805 5,974,980 - 3,248,453 - 3,605,628 3,605,628 - Sanitation 3,142,041 3,356,040 - - 213,999 213,999 - Total Business-type Activities 12,824,376 13,387,619 - 4,966,080 - 5,529,323 5,529,323 - TOTAL PRIMARY GOVERNMENT 48,417,998$ 28,935,792$ 3,826,559$ 11,673,590$ (9,511,380)$ 5,529,323$ (3,982,057)$ - COMPONENT UNIT Rexburg Urbal Renewal District 908,800$ -$ -$ -$ -$ -$ -$ (908,800)$ GENERAL REVENUES: Property Taxes Levied for General Purposes 7,804,168 - 7,804,168 2,270,628 State Taxes 8,202,338 - 8,202,338 - Investment Earnings 1,811,426 1,220,730 3,032,156 405,556 Miscellaneous 653,897 124,328 778,225 18,531 Proceeds from (Loss on) Sale of Capital Assets (101,712) (886,333) (988,045) Total General Revenue 18,370,117 458,725 18,828,842 2,694,715 Change in Net Position 8,858,737 5,988,048 14,846,785 1,785,915 NET POSITION - BEGINNING BALANCE 98,504,358 62,658,156 161,162,514 5,463,884 Prior Period Adjustment (1,000,000) - (1,000,000) - NET POSITION - BEGINNING BALANCE, as restated 97,504,358 62,658,156 160,162,514 5,463,884 NET POSITION - ENDING BALANCE 106,363,095$ 68,646,204$ 175,009,299$ 7,249,799$ Program Revenues Net (Expense) Revenue and Changes in Net Position CITY OF REXBURG, IDAHO BALANCE SHEETS – GOVERNMENTAL FUNDS September 30, 2024 The Accompanying Notes are an Integral Part of the Financial Statements 24 Emergency LID Debt LID Other Total General Street Service Service Construction Governmental Governmental Fund Fund Fund Funds Fund Funds Funds ASSETS Cash and Investments 5,187,751$ 3,469,398$ 96,857$ -$ 522,065$ 14,133,281$ 23,409,352$ Receivables 1,334,176 1,601,419 251,182 2,352,854 - 3,212,860 8,752,491 Accrued Interest Receivable-Leases 493 - - - - - 493 Lease Receivable 309,545 - - - - - 309,545 Supplies Inventory 58,965 - - - - - 58,965 Due from Other Funds 2,680,305 - - - - - 2,680,305 TOTAL ASSETS 9,571,235$ 5,070,817$ 348,039$ 2,352,854$ 522,065$ 17,346,141$ 35,211,151$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable 3,038,179$ 258,286$ 152,886$ 49,972$ 522,065$ 807,046$ 4,828,434$ Accrued Payroll Liability 297,829 32,948 145,969 - - 237,849 714,595 Due to Other Funds - - - 2,107,864 - 572,441 2,680,305 Other 35,409 25,200 49,184 - - 21,706 131,499 TOTAL LIABILITIES 3,371,417 316,434 348,039 2,157,836 522,065 1,639,042 8,354,833 DEFERRED INFLOWS OF RESOURCES Landlord Leases Deferred Inflows 290,385 - - - - - 290,385 Unavailable Revenues 49,242 - - 2,178,807 - 9,973 2,238,022 TOTAL DEFERRED INFLOWS OF RESOURCES 339,627 - - 2,178,807 - 9,973 2,528,407 FUND BALANCES Nonspendable 58,965 - - - - - 58,965 Restricted - 4,754,383 - - - 8,765,965 13,520,348 Committed 5,773,800 - - - - 6,931,161 12,704,961 Unassigned 27,426 - - (1,983,789) - - (1,956,363) TOTAL FUND BALANCES 5,860,191 4,754,383 - (1,983,789) - 15,697,126 24,327,911 TOTAL LIABILITIES, DEFERRED INFLOWS OF RESOURCES, AND FUND BALANCES 9,571,235$ 5,070,817$ 348,039$ 2,352,854$ 522,065$ 17,346,141$ 35,211,151$ CITY OF REXBURG, IDAHO RECONCILIATION OF THE BALANCE SHEETS – GOVERNMETAL FUNDS TO THE STATEMENT OF NET POSITION GOVERNMENT WIDE September 30, 2024 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 24,327,911$ Capital assets used in governmental activities are not financial resources and, therefore, are not reported in the funds. Right of Use Lease Asset, net 1,024,458 Right of Use SBITA Asset, net 242,493 Cost of Assets 143,641,742 Accumulated Depreciation (56,732,233) Net Cost of Assets 88,176,460 Certain receivables are not financial resources and are reported as deferred revenues Property Tax Deferred Revenue 59,215 Special Assessment Deferred Revenue 2,178,807 Long-term liabilities, including bonds payable, are not due and payable in the current period and therefore are not reported in the funds Deferred Pension Outflows 2,576,570 Deferred Pension Inflows (189,252) Net Pension Liability (8,551,042) Lease Liabilites (839,340) Contract Liabilites (137,144) Long-Term Debt (174,486) Accrued Compensated Absences (1,046,870) Accrued Interest Payable (17,734) TOTAL NET POSITION - GOVERNMENTAL ACTIVITIES 106,363,095$ CITY OF REXBURG, IDAHO STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMETAL FUNDS For the year ended September 30, 2024 The Accompanying Notes are an Integral Part of the Financial Statements 26 - - Emergency LID Debt LID Other Total General Street Service Service Construction Governmental Governmental Fund Fund Fund Funds Fund Funds Funds REVENUES Taxes 10,698,062$ 4,156,919$ -$ -$ -$ 1,135,387$ 15,990,368$ Grants and Contributions 883,212 4,753,757 2,352,890 - 796,216 1,758,902 10,544,977 Fees and Charges 4,634,183 2,558,487 650,506 500,575 - 7,204,422 15,548,173 Investment/Interest Income 1,124,410 - - 82,518 - 604,498 1,811,426 Miscellaneous 209,756 91,790 1,900 - - 350,451 653,897 TOTAL REVENUES 17,549,623 11,560,953 3,005,296 583,093 796,216 11,053,660 44,548,841 EXPENDITURES Current: General and Administrative 5,546,399 - - - - 1,855,902 7,402,301 Public Safety 7,284,247 - 5,764,032 - - 1,508,620 14,556,899 Parks and Recreation and Arts 1,389,302 - - - ‐                                 2,663,427 4,052,729 Streets ‐                           2,314,655 - - 809,886 110,280 3,234,821 Debt Service: Interest on Bonds and Other Debt 31,443 - - - - 7,514 38,957 Principal on Bonds and Other Debt 422,774 - - - - 51,682 474,456 Capital Improvements: General and Administrative 186,298 - - - - 586,760 773,058 Public Safety 288,717 - 301,593 - - 678,354 1,268,664 Parks and Recreation and Arts 55,798 - - - - 1,607,618 1,663,416 Streets - 5,927,144 - - 2,823,585 1,114,861 9,865,590 TOTAL EXPENDITURES 15,204,978 8,241,799 6,065,625 - 3,633,471 10,185,018 43,330,891 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,344,645 3,319,154 (3,060,329) 583,093 (2,837,255) 868,642 1,217,950 OTHER SOURCES (USES) Proceeds From Borrowing 699,770 - - - - - 699,770 Operating Transfers In 37,465 4,839,027 3,060,329 - 3,526,418 2,498,849 13,962,088 Operating Transfers Out (4,173,021) (7,137,433) - (735,331) - (1,916,303) (13,962,088) TOTAL OTHER SOURCES (USES)(3,435,786) (2,298,406) 3,060,329 (735,331) 3,526,418 582,546 699,770 REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES)(1,091,141) 1,020,748 - (152,238) 689,163 1,451,188 1,917,720 FUND BALANCE, BEGINNING OF YEAR 6,951,332 3,733,635 - (1,831,551) (689,163) 15,245,938 23,410,191 Prior Period adjustment - - - - - (1,000,000) (1,000,000) 6,951,332 3,733,635 - (1,831,551) (689,163) 14,245,938 22,410,191 FUND BALANCE, END OF YEAR 5,860,191$ 4,754,383$ -$ (1,983,789)$ -$ 15,697,126$ 24,327,911$ FUND BALANCE, BEGINNING OF YEAR, as restated CITY OF REXBURG, IDAHO RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCES – GOVERNMETAL FUNDS TO THE STATEMENT OF ACTIVITIES For the year ended September 30, 2024 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 1,917,720$ Governmental funds report capital outlays as expenditures. However, in the statement of activities, assets with an initial, individual cost of more than $5,000 are capitalized and the cost is allocated over their estimated useful lives and reported as depreciation expense. This is the amount by which capital outlays are reduced by depreciation in the current period: Capital Expenditures Capitalized as Fixed Assets 13,336,516 Depreciation Expense (5,012,007) Basis in Assets Disposed of (101,712) Principal Payments on Leases 468,366 Revenues in the Statement of Activities that do not provide current financial resources are not reported as revenues in the funds: Special Assessments Levied 277,535 Changes in deferred revenue not in Statement of Activites: Special Assessment Deferred Revenue (239,274) Property Tax Deferrals 16,138 Recreation and Cultural Arts Revenue Deferral (49,169) Compensated Absences Accrual adjustment (499,541) Net Pension (Expense) Revenue (1,255,835) CHANGE IN NET ASSETS OF GOVERNMENTAL ACTIVITIES 8,858,737$ CITY OF REXBURG, IDAHO STATEMENT OF NET POSITION – PROPRIETARY FUNDS September 30, 2024 The Accompanying Notes are an Integral Part of the Financial Statements 28 Sanitation Water Wastewater Total ASSETS Current Assets: Cash and Investments 2,222,354$ 9,854,317$ 12,741,643$ 24,818,314$ Receivables 337,778 621,773 718,642 1,678,193 Supplies Inventory 20,392 - - 20,392 Total Current Assets 2,580,524 10,476,090 13,460,285 26,516,899 Capital Assets: Capital Assets 3,299,040 33,339,854 48,845,536 85,484,430 Accumulated Depreciation (1,876,147) (10,415,223) (20,068,219) (32,359,589) Total Capital Assets 1,422,893 22,924,631 28,777,317 53,124,841 TOTAL ASSETS 4,003,417 33,400,721 42,237,602 79,641,740 DEFERRED OUTFLOWS OF RESOURCES Pension Related 93,555 114,956 141,060 349,571 TOTAL ASSETS AND DEFERRED OUTFLOWS OF RESOURCES 4,096,972$ 33,515,677$ 42,378,662$ 79,991,311$ LIABILITIES Current Liabilities: Accounts Payable 315,029$ 146,925$ 609,389$ 1,071,343$ Accrued Compensated Absences 25,562 43,968 65,520 135,050 Accrued Payroll 14,105 32,900 38,094 85,099 Accrued Interest Payable - 3,996 351 4,347 Other 18,710 260,882 70 279,662 Grants Received in Advance - - 730,000 730,000 Current Portion of Long-term Obligations - 198,617 790,000 988,617 Total Current Liabilities 373,406 687,288 2,233,424 3,294,118 Noncurrent Liabilities: Noncurrent Portion of Long-term Obligations - 6,746,136 - 6,746,136 Net Pension Liability 309,462 439,326 533,043 1,281,831 Total Nonurrent Liabilities 309,462 7,185,462 533,043 8,027,967 TOTAL LIABILITIES 682,868 7,872,750 2,766,467 11,322,085 DEFERRED INFLOWS OF RESOURCES Pension related 4,315 8,549 10,158 23,022 NET POSITION Invested in Capital Assets Net of Related Debt 1,422,893 15,979,878 27,987,317 45,390,088 Restricted for: Capital Projects - 2,946,959 4,122,038 7,068,997 Operations 1,986,896 6,707,541 7,492,682 16,187,119 TOTAL NET POSITION 3,409,789 25,634,378 39,602,037 68,646,204 TOTAL LIABILTIES, DEFERRED INFLOWS OF RESOURCES, AND NET POSITION 4,096,972$ 33,515,677$ 42,378,662$ 79,991,311$ Enterprise Funds Business-type Activities CITY OF REXBURG, IDAHO STATEMENT OF REVENUES,EXPENDITURES AND CHANGES IN NET POSITION – PROPRIETARY FUNDS September 30, 2024 The Accompanying Notes are an Integral Part of the Financial Statements 29 Sanitation Water Wastewater Total OPERATING REVENUES Monthly Utility Services 3,356,040$ 3,963,123$ 5,957,626$ 13,276,789$ One Time Fees - 93,476 17,354 110,830 Miscellaneous 7,626 63,835 52,867 124,328 TOTAL OPERATING REVENUES 3,363,666 4,120,434 6,027,847 13,511,947 OPERATING EXPENDITURES Utility Expenses 2,976,502 3,220,009 4,220,935 10,417,446 Depreciation and Amortization 165,539 767,376 1,379,258 2,312,173 TOTAL OPERATING EXPENDITURES 3,142,041 3,987,385 5,600,193 12,729,619 OPERATING INCOME 221,625 133,049 427,654 782,328 NON-OPERATING REVENUES (EXPENSES) Grants and Contributions/Sale of Capacity - 657,522 2,555,969 3,213,491 Contributed Capital - 1,060,105 692,484 1,752,589 Net Proceeds from Capital Asset Sales (17,842) (327,939) (540,552) (886,333) Investment Earnings 53,061 303,722 363,844 720,627 Unrealized Gain (Loss) - 277,890 222,213 500,103 Interest Expense - (77,145) (17,612) (94,757) TOTAL NON-OPERATING REVENUES (EXPENSES)35,219 1,894,155 3,276,346 5,205,720 CHANGE IN NET POSITION 256,844 2,027,204 3,704,000 5,988,048 FUND BALANCE, BEGINNING OF YEAR 3,152,945 23,607,174 35,898,037 62,658,156 FUND BALANCE, END OF YEAR 3,409,789$ 25,634,378$ 39,602,037$ 68,646,204$ Enterprise Funds Business-type Activities CITY OF REXBURG, IDAHO STATEMENT OF CASH FLOWS – PROPRIETARY FUNDS September 30, 2024 The Accompanying Notes are an Integral Part of the Financial Statements 30 Sanitation Water Wastewater Totals CASH FLOWS FROM OPERATING ACTIVITIES Receipts from Customers 3,344,053$ 4,030,270$ 6,006,531$ 13,380,854$ Payments to Suppliers (1,183,480) (962,871) (1,276,925) (3,423,276) Payments to Employees (506,709) (1,142,097) (1,130,002) (2,778,808) Internal Activity - Payments to Other Funds for Services (792,576) (1,010,475) (1,319,749) (3,122,800) Other Payments/Interest Payments (238,748) (20,539) - (259,287) NET CASH FROM OPERATING ACTIVITIES 622,540 894,288 2,279,855 3,796,683 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Sale of Capacity and Contributions - 657,522 2,555,969 3,213,491 Acquisitions of Property, Plant and Equipment (549,850) (1,282,809) (1,745,281) (3,577,940) Change in Grants Received in Advance - - 730,000 730,000 Proceeds from Sale of Assets - (85,484) (540,552) (626,036) Interest Income 53,061 303,722 363,844 720,627 Principal Payments on Revenue Bonds - (194,847) (785,000) (979,847) Interest Payments - (77,145) (17,612) (94,757) Change in Interest Payable for Capital - (112) (413) (525) Unrealized Gain (Loss) on Investments - 277,890 222,213 500,103 Contributed Capital - 71,355 72,384 143,739 NET CASH FROM CAPITAL AND RELATED FINANCING ACTIVITIES (496,789) (329,908) 855,552 28,855 NET CHANGE IN CASH AND INVESTMENTS 125,751 564,380 3,135,407 3,825,538 CASH AND INVESTMENTS AT BEGINNING OF YEAR 2,096,603 9,289,937 9,606,236 20,992,776 CASH AND INVESTMENTS AT END OF THE YEAR 2,222,354$ 9,854,317$ 12,741,643$ 24,818,314$ RECONCILIATION OF OPERATING INCOME TO NET CASH FROM OPERATING ACTIVITIES Operating Income 221,625$ 133,049$ 427,654$ 782,328$ Adjustments to Reconcile Operating Income to Net Cash Provided by Operating Activities: Depreciation and Amortization 165,539 767,376 1,379,258 2,312,173 Changes in Assets and Liabilities: (Increase) Decrease in accounts receivable (9,018) (121,267) (21,426) (151,711) (Increase) Decrease in inventory 7,544 - - 7,544 Increase (Decrease) in accounts payable 198,390 (16,032) 382,105 564,463 Increase (Decrease) in accrued compensated absences 12,555 25,542 24,585 62,682 Increase (Decrease) in payroll accrual 3,541 9,207 9,976 22,724 Increase (Decrease) in net pension related items 32,959 65,310 77,593 175,862 Increase (Decrease) in deposits payable (10,595) 31,103 110 20,618 NET CASH FROM OPERATING ACTIVITIES 622,540$ 894,288$ 2,279,855$ 3,796,683$ Non-Cash Investing and Financing Activities: Water 988,750$ Wastewater 620,100 Business-Type Activities - Enterprise Funds The City received capital infrastructure contributions from several builders and organizations in relation to street, water, wastewater, and lighting improvements. The value of these infrastructure contributions is listed below by impacted proprietary fund, and are charged against capital expenditures and contribution revenue. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 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 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 activities) 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. Certain eliminations have been made as prescribed by GASB 34 regarding interfund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and business- type activities, which are presented as internal balances and eliminated in the total primary government column. There are no internal service fund transactions to be eliminated. 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, 2024 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 funds 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, 2024 33 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)  The LID Construction Fund is a consolidation on the financial statements of fund 53-58 and accounts for the LID construction actions related to road reconstruction, sewer and water improvements/replacements, street, sidewalk, curb and gutter, and other improvements made by the City. Some of the improvements are made on behalf of property owners and some are paid by the City. The City generally starts a new LID each year designated to a specific fund and generally closes out a specific LID designated fund each 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. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private- sector guidance for their business-type activities, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. When both restricted and unrestricted resources are available for use, it is the government’s policy to use restricted resources first, then unrestricted resources as they are needed. The City considers restricted amounts to have been spent first when an expenditure is incurred for purposes for which multiple classifications may be included in a fund balance. For example, restricted amounts are used first, followed by committed, assigned, and unassigned amounts in that order, for purposes of reporting fund balance. As a general rule the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include 1) charges to customers or applicants for goods, services, or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions, including special assessments. Internally dedicated resources are reported as general revenues rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund’s principal on- going operations. The principle operating revenues of water, wastewater, and sanitation 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 34 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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. 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 net position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element 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 or the statement of net position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element 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, 2024 35 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Deferred Outflows/Inflows of Resources, 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 revenues received in advance. 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, 2024 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. Fund Balance In the fund financial statements, governmental funds are reported in classifications that comprise a hierarchy based primarily on the extent to which the government is bound to honor how those amounts may be spent. Designations of fund balances are classified on the relative strength of the spending constraints placed on the purpose for which resources can be used as follows: Nonspendable fund balance – amounts that cannot be spent because they are either (1) not in spendable form or (2) legally or contractually required to be maintained intact. Restricted fund balance – amounts constrained to specific purposes externally imposed by creditors (such as through debt covenants), grantor and contributors or laws, or regulations or other governments, or through constitutional provisions, or by enabling legislation. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 36 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Fund Balance (continued) Committed fund balance - amounts that can only be used for 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 that represent fund balance that has not been assigned to other funds and that has not been restricted, committed, or assigned to specific purposes within the General Fund. In other governmental funds, it may be necessary to report a negative residual balance as unassigned. 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. Net Position Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowing used for the acquisition, construction, or improvement of those assets. Net position is reported as restricted when there are limitations imposed on its use through external restrictions imposed by creditors, grantors, or laws and regulations of other governments. Net position restricted for the purpose of capital outlay is only spent upon Council approval. The City has a policy to expend restricted amounts first when an expenditure has been incurred for purposes for which both restricted and unrestricted fund balances are available. The policy states the order of releasing fund balance for current expenditures is restricted, committed, assigned and then unassigned. 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 and Investments 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. Cash and cash equivalents that are held as a portion of the City’s investment portfolio are classified as investments and are not considered to be cash equivalents. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 37 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Cash and Investments (continued) 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. 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 City 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 38 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) New Accounting Pronouncement During the year, the City implemented GASB Statement No. 100, Accounting Changes and Error Corrections. This statement will improve the clarity of the accounting and financial reporting requirements for accounting changes and error corrections, which will result in greater consistency in application in practice. In turn, more understandable, reliable, relevant, consistent, and comparable information will be provided to financial statement users for making decisions or assessing accountability. In addition, the display and note disclosure requirements will result in more consistent, decision useful, understandable, and comprehensive information for users about accounting changes and error corrections. The implementation of this standard adjusted the way the prior period adjustment was presented in the financial statements and the note disclosures during the current year. The following GASB pronouncements have been issued, but will be effective in future years and may impact the City’s future financials: 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 2023, 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. GASB Statement No. 103 – Financial Reporting Model Improvements. Issued April 2024, this Statement is intended to improve key components of the financial reporting model to enhance its effectiveness in providing information that is essential for decision making and assessing a government’s accountability. This Statement continues the requirement that the basic financial statements be preceded by management’s discussion and analysis (MD&A), which is presented as required supplementary information. The Statement requires that governments display the inflows and outflows related to unusual or infrequent items separately as the last presented flow(s) of resources prior to the net change in resource flows in the government-wide and governmental fund statements of resource flows. The Statement continues the requirement that the proprietary fund statement of revenues, expenses, and changes in fund net position continue to distinguish between operating and nonoperating revenues and expenses. The Statement requires governments to present budgetary comparison information using a single method of communication – RSI. Governments are also required to present (1) variances between original and final budget amounts and (2) variances between final budget and actual amounts. The requirements of this Statement are effective for fiscal years beginning after June 15, 2025. GASB Statement No. 104 – Disclosure of Certain Capital Assets. Issued September 2024, this Statement requires certain types of capital assets to be disclosed separately in the capital assets note disclosures required by Statement No. 34, including right-of-use assets under GASB 87 and GASB 96, and PPP arrangements under GASB 94. This statement is effective for fiscal years beginning after June 15, 2025. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 39 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Subsequent Events In preparing these financial statements, the management of the City has evaluated events and transactions for potential recognition and disclosure through March 19, 2025; the date the financial statements were available to be issued. 2. CASH AND SHORT-TERM INVESTMENTS  Deposits – At September 30, 2024, the carrying amount of the City’s bank deposits was $2,250,676.  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, 2024, $578,248 of the City’s deposits and $938,457 of the Fire District’s deposits were not covered by the FDIC or NCUA insurance, and thus was exposed to custodial credit risk. Of the Investments, $29,753,214 were not covered by FDIC or NCUA, but may be covered in part by SIPC. Investments – As of September 30, 2024, the City had the following investments: Investment Type: WAM (years)Fair Value Less than 1 1-5 6-10 More than 10 State Diversified Bond Fund 2.670 9,052,794$ 4,245,760$ 3,756,910$ 1,050,124$ -$ State Investment Pool 0.230 4,310,588 4,245,929 64,659 - - Moreton Asset Management 2.329 13,081,374 3,003,532 9,837,849 239,993 - Zion's Bank Capital Advisors 1.452 5,613,695 2,660,509 2,953,186 - - TVI Bond Investments 2.926 11,446,036 2,726,083 8,453,293 266,660 - Certificates of Deposit N/A 2,022,712 2,022,712 - - - Land & Non-cash Investments N/A 449,791 - - - 449,791 45,976,990$ 18,904,526$ 25,065,896$ 1,556,777$ 449,791$ 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 40 2. CASH AND SHORT-TERM INVESTMENTS (continued)  The following is a reconciliation of the City’s deposit and investment balance as of September 30, 2024: Deposits 2,247,416$ Petty Cash 3,260 Investments 45,527,199 Land & Non-cash Investments 449,791 Total Cash & Investments 48,227,666$ 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, 2024: Investment Type: Fair Value: Level 1 Level 2 Level 3 State Diversified Bond Fund 9,052,794$ -$ 9,052,794$ -$ State Investment Pool 4,310,588 - 4,310,588 - Moreton Asset Management 13,081,374 13,081,374 - - Zion's Bank Capital Advisors 5,613,695 5,613,695 - - TVI Bond Investments 11,446,036 11,446,036 - - Certificates of Deposit 2,022,712 2,022,712 - - Land & Non-cash Investments 449,791 - - 449,791 45,976,990$ 32,163,817$ 13,363,382$ 449,791$ CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 41 3. CAPITAL ASSETS Capital assets activity for the governmental funds for the year ended September 30, 2024, was: PRIMARY GOVERNMENT 9/30/2023 Increases Decreases 9/30/2024 GOVERNMENTAL ACTIVITIES Capital assets, not being depreciated Land 5,017,483$ 61,736$ -$ 5,079,219$ Capital assets, being depreciated Buildings 15,529,235 983,984 (58,357) 16,454,862 Land improvements 83,512,693 8,571,405 - 92,084,098 Equipment 15,594,424 2,902,816 (86,047) 18,411,193 Office furniture 182,297 - - 182,297 Vehicles 10,992,559 816,575 (379,062) 11,430,072 Total Capital Assets, Being Depreciated 125,811,208 13,274,780 (523,466) 138,562,522 Depreciation Buildings (5,776,171) (430,424) 16,362 (6,190,233) Land improvements (32,267,492) (3,022,387) - (35,289,879) Equipment (8,324,332) (701,228) 60,448 (8,965,112) Office furniture (145,539) (5,061) - (150,600) Vehicles (6,055,626) (402,235) 321,451 (6,136,410) Total Depreciation (52,569,160) (4,561,335) 398,261 (56,732,234) Total capital assets being depreciated, net 73,242,048 8,713,445 (125,205) 81,830,288 Right of Use Assets - Leases Lease assets 1,201,325 636,143 (238,676) 1,598,792 Amortization (522,145) (290,862) 238,676 (574,331) Total right-of-use assets - leases, net 679,180 345,281 - 1,024,461 Right of Use Assets - SBITAs Subscription IT assets 640,446 63,627 - 704,073 Amortization (301,768) (159,813) - (461,581) Total right-of-use assets - SBITAs, net 338,678 (96,186) - 242,492 Total capital assets, net - Governmental Activities 79,277,389$ 9,024,276$ (125,205)$ 88,176,460$ CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 42 3. CAPITAL ASSETS (continued) Depreciation expense was charged to the government activities as follows: General and Administrative 784,794$ Public Safety 734,719 Parks and Recreation and Arts 841,330 Streets 2,651,167 Total Depreciation and Amortizatio 5,012,010$ Capital assets activity for the proprietary funds for the year ended September 30, 2024, was: PROPRIETARY ACTIVITIES 9/30/2023 Increases Decreases 9/30/2024 Capital assets, not being depreciated Land 329,696$ -$ -$ 329,696$ Capital assets, being depreciated Buildings 14,995,599 1,112,068 (215,869) 15,891,798 Land improvements 52,577,981 3,880,492 (1,901,812) 54,556,661 Equipment 11,304,752 575,266 (1,166,801) 10,713,217 Vehicles 3,801,480 289,999 (98,421) 3,993,058 Total Capital Assets, Being Depreciated 82,679,812 5,857,825 (3,382,903) 85,154,734 Depreciation Buildings (3,900,887) (400,999) 180,860 (4,121,026) Land improvements (21,114,032) (1,200,900) 1,128,826 (21,186,106) Equipment (4,998,118) (501,198) 1,061,052 (4,438,264) Vehicles (2,485,949) (209,076) 80,832 (2,614,193) Total Depreciation (32,498,986) (2,312,173) 2,451,570 (32,359,589) Total capital assets being depreciated, net 50,180,826 3,545,652 (931,333) 52,795,145 Total capital assets, net - Proprietary Activities 50,510,522$ 3,545,652$ (931,333)$ 53,124,841$ CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 43 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, 2024, are based on the assessed values and tax revenues established in 2023. 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. or the “Development Company”) is currently administering these funds for the City. The balances of outstanding loans at September 30, 2024 are as follows: Recipient Repayment Terms Amount Robertson Taylor, LLC Receivable in monthly installments including interest through 2028.33,691$ Appible, LLC Receivable in monthly installments including interest through 2017.4,177 Coates Landscape Receivable in monthly installments including interest through 2037.277,977 Stoney Court Playcare, LLC Receivable in monthly installments including interest through 2040.167,342 Rexburg Flowers, LLC Receivable in monthly installments including interest through 2031.185,390 Integrity Development Receivable in monthly installments including interest through 2031.83,302 Graystone Ventures, LLC Receivable in monthly installments including interest through 2031.183,140 Debrock River Property LLC Receivable in monthly installments including interest through 2043.100,430 Altura This was matching funds to create the USDA Rural Development IRP Revolving Loan Fund 125,000 1,160,449$ Between cash in the Development Company and cash/investments the City is holding, there is a total of $443,483, which is available for future revolving loan projects. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 44 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 $722,691 as of September 30, 2024. 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, 2024 45 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) 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, 2024, 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 $1,983,789 as of September 30, 2024 that was self-funded by the General Fund. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 46 10. CHANGES IN LONG-TERM OBLIGATIONS A summary of long-term obligations of the City for the year ended September 30, 2024, is as follows: PRIMARY GOVERNMENT 9/30/2023 Increases Decreases 9/30/2024 GOVERNMENTAL ACTIVITIES Accrued Compensated Absences (Note 6) 547,329 499,541 - 1,046,870 1,046,870 Lease Liability (Note 11) 528,021 311,319 - 839,340 282,397 Financed Purchase Obligations (Note 12) 226,165 - (51,679) 174,486 51,682 Contracts Payable (Note 13) 171,471 - (34,327) 137,144 98,985 Net Pension Liability (Note 14) 8,883,839 - (332,797) 8,551,042 - 10,356,825 810,860 (418,803) 10,748,882 1,479,934 BUSINESS-TYPE ACTIVITIES Accrued Compensated Absences (Note 6) 72,368 62,682 - 135,050 135,050 Water DEQ Loan (Note 10) 7,139,600 - (194,847) 6,944,753 198,617 Wastewater Revenue Bonds (Note 10) 1,575,000 - (785,000) 790,000 790,000 Net Pension Liability (Note 14) 1,310,065 - (28,234) 1,281,831 - 10,097,033 62,682 (1,008,081) 9,151,634 1,123,667 Total Government Long-Term Liabilities 20,453,858 873,542 (1,426,884) 19,900,516 2,603,601 Business-type Activity Long-Term Liabilities Due within One Year Governmental Acitity Long-Term Obligations Description of Long-term Debt: Wastewater Revenue Bonds outstanding at September 30, 2024, 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, 2024: CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 47 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 $11,100,000, of which approximately 20% was forgiven as a grant. The final loan terms were established in 2022. The annual repayment requirements as of September 30, 2024, including interest, are as follows: Total Principal Interest Principal Interest 2025 198,617$ 120,657$ 790,000$ 9,322$ 1,118,596$ 2026 202,108 117,166 - - 319,274 2027 205,660 113,613 - - 319,273 2028 208,968 110,305 - - 319,273 2029 212,948 106,325 - - 319,273 2030-2034 1,121,941 474,425 - - 1,596,366 2035-2039 1,224,109 372,256 - - 1,596,365 2040-2044 1,335,463 260,904 - - 1,596,367 2045-2049 1,457,265 139,101 - - 1,596,366 2050-2052 777,674 20,506 - - 798,180 Total 6,944,753$ 1,835,258$ 790,000$ 9,322$ 9,579,333$ Wastewater Revenue BondsWater DEQ Loan 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, 2024 48 11. LEASE ACTIVITY (continued) Lease agreements are summarized by type as follows: Vehicles – Starting in 2018, the City has leased its police fleet. This represents 32 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 $324,821. Remaining lease obligations are as follows: Principal Interest Total 2025 282,397$ 29,374$ 311,771$ 2026 244,516 18,726 263,242 2027 181,450 9,009 190,459 2028 130,977 1,557 132,534 839,340$ 58,666$ 898,006$ 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 (1) 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, 2024 49 11. LEASE ACTIVITY (continued) Lessor 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 $2,070. Remaining lease receipts are as follows: Principal Interest Total 2025 74,737$ 14,923$ 89,660$ 2026 76,515 14,760 91,275 2027 48,627 8,155 56,782 2028 54,307 4,140 58,447 2029 11,170 1,444 12,614 2030-2034 41,729 3,612 45,341 2035-2039 2,460 6 2,466 309,545$ 47,040$ 356,585$ 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, 2024. The payment schedules are over 5 years and are discounted at a rate of 3%. Payments are variable between $15,346 and $23,085. Remaining obligations are as follows: Principal Interest Total 2025 51,682$ 5,818$ 57,500$ 2026 51,682 4,122 55,804 2027 51,682 2,425 54,107 2028 19,440 729 20,169 174,486$ 13,094$ 187,580$ CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 50 13. CONTRACTS PAYABLE Subscription-based Information Technology Agreements: The City subscribes to a multi-year agreements with companies to fulfill IT related services. 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 (1) 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. They have two such agreements in place at September 30, 2024. The first is with Tyler Technologies for their main financial software. The agreement is discounted using a 3% discount rate, and costs $89,668 per year. The second agreement is with Apptegy and is discounted at 3% with an annual cost of $13,500 over 5 years. Remaining contract obligations are as follows: Principal Interest Total 2025 98,985$ 1,940$ 100,925$ 2026 12,339 901 13,240 2027 12,715 517 13,232 2028 13,105 122 13,227 137,144$ 3,480$ 140,624$ CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 51 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). The Base Plan covers substantially all employees of the State of Idaho, its agencies, and various participating political subdivisions. The FRF Plan covers a closed group of firefighters who were hired before October 1, 1980, and who received benefits in addition to those provided under the PERSI Base Plan. The cost to administer the plan is financed through the contributions and investment earnings of the plans. Additional FRF funding is obtained from receipts from a State fire insurance premium tax. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan and FRF is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits The Base Plan provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 52 14. RETIREMENT PLANS (continued) The FRF provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. 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. 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 public safety. As of June 30, 2024, the employee contribution rate was 6.71% for general employees and 9.83% for public safety. These amounts were adjusted effective July 1, 2024 to 7.18% for general employees and 10.83% for public safety. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and at June 30, 2024, was 11.18% for general employees and 13.26% for public safety. These rates also adjusted at July 1, 2024 to 11.96% for general employees, and 14.65% for public safety. The City’s contributions to the Base Plan were $1,625,948 for the year ended September 30, 2024. The City’s contributions were $42,909 for the year ended September 30, 2024. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At September 30, 2024, the City reported a liability for its proportionate share of the net pension asset or liability. The net pension asset of FRF and net pension liability of the Base Plan were measured as of June 30, 2024, and the total pension liability for the Plans used to calculate the net pension asset/liability were determined by an actuarial valuation as of that date. The City’s proportion of the net pension asset/liability was based on the City’s share of contributions to the Plans relative to the total contributions of all participating PERSI Base Plan and FRF employers. At June 30, 2024 the City’s proportions were: 1) Base Plan including non-FRF firemen 0.2780816% 2) Base Plan including FRF firemen 0.0080118% 3) FRF Excess Costs Plan 0.3452044% CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 53 14. RETIREMENT PLANS (continued) For the year ended September 30, 2024, the City recognized pension expense (revenue) of: 1) Base Plan including non-FRF firemen 3,067,380$ 2) Base Plan including FRF firemen 69,701$ 3) FRF Excess Costs Plan (49,598)$ At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the Base Plan pension plan from the following sources: Diff between expect & actual experience $ 1,656,101 $ - Changes in assumptions 412,076 - Net Diff between projected & actual earnings - 188,814 Changes in employer's proportion & diff in contributions 262,924 - Subsequent contributions 491,033 - Total 2,822,134$ 188,814$ Deferred Inflows of Resources Deferred Outflows of Resources $491,033 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, 2025. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to the Base FRF pension plan from the following sources: Diff between expect & actual experience $ 47,714 $ - Changes in assumptions 11,872 - Net Diff between projected & actual earnings - 5,440 Changes in employer's proportion & diff in contributions - 18,020 Subsequent contributions 16,491 - Total 76,077$ 23,460$ Deferred Outflows of Resources Deferred Inflows of Resources $16,491 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, 2025. 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, 2024 the beginning of the measurement period ending June 30, 2023, is 4.4 years and 4.4 years for the measurement period June 30, 2024. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 54 14. RETIREMENT PLANS (continued) At September 30, 2024 the City reported deferred outflows of resources and deferred inflows of resources related to the FRF Excess pension plan from the following sources: Diff between expect & actual experience $ - $ - Changes in assumptions - - Net Diff between projected & actual earnings 27,930 - Changes in employer's proportion & diff in contributions - - Subsequent contributions - - Total 27,930$ $ - Deferred Outflows of Resources Deferred Inflows of Resources 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, 2024 the beginning of the measurement period ending June 30, 2024, is 1 year and 1 year for the measurement period June 30, 2023. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense (revenue) as follows: Fiscal Year Base Plan FRF Base Plan FRF Excess 2025 595,796$ 11,496$ (10,136)$ 2026 2,025,726 51,843 46,769 2027 (265,201) (17,008) (8,509) 2028 (214,034) (10,206) (193) 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 55 14. RETIREMENT PLANS (continued) The total pension liability in the June 30, 2024 actuarial valuation for the Base Plan and the July 1, 2024 actuarial valuation for the FRF Plan were determined using the following actuarial assumptions, applied to all periods included in the measurement: Base Plan FRF Inflation 2.30% 2.30% Salary increases including inflation 3.05% 3.05% * Investment rate of return-net of investment fees 6.35% 6.35% Cost of Living (COLA) adjustments 1.00% ** * 3.05% assumed for the gross benefit paid to memebers of the FRF. A 1% assumed for PERSI benefit offsets used to determine the benefits paid by FRF. ** There is an additional component of assumed salary growth (on top of the 3.05%) that varies for each individual member based on years of service. 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 both the Base and FRF Plans, an experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all economic and demographic assumptions, including mortality. The Total Pension Liability as of June 30, 2024 is based on the results of an actuarial valuation date of July 1, 2024. 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 56 14. RETIREMENT PLANS (continued) 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 the System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2024. Long-Term Target Expected Real Asset Class Allocation Rate of Return Cash 0% 0.00% 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 57 14. RETIREMENT PLANS (continued) Sensitivity of the Employer’s proportionate share of the net pension liability to changes in the discount rate. The following presents the Employer’s proportionate share of the net pension liability calculated using the discount rate of 6.35 percent, as well as what the Employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower (5.35 percent) or 1-percentage-point higher (7.35 percent) than the current rate: 5.35% 6.35% 7.35% 19,767,123$ 10,402,043$ 2,753,160$ 5.35% 6.35% 7.35% 569,511$ 299,694$ 79,321$ 5.35% 6.35% 7.35% (801,786)$ (868,864)$ (927,537)$ Base Plan 1% Increase Current Discount Rate1% Decrease Base FRF Plan 1% Decrease Current Discount Rate 1% Increase FRF Excess Plan 1% Decrease Current Discount Rate 1% Increase 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, 2024, the City reported no payables to the Plans. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 58 14. RETIREMENT PLANS (continued) 401(k) Plan The City has a single employer defined contribution 401(k) pension plan (the 401k Plan), established by ordinance and in compliance with Internal Revenue Service Regulations. The 401k Plan covers substantially all city employees who meet defined age and service requirements. The 401k 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 2024 fiscal year payroll for all employees was $15,325,835; of which $9,690,040 was for covered payroll for employees who were members of the 401k Plan. Employer and employee contributions to the 401k Plan were 1.85% and 4.20% respectively, of covered payroll. Total contributions to the 401k Plan for the fiscal year by the City and the employees were $179,202 and $407,307 respectively. The 401k Plan had $11,223,926 in net assets at September 30, 2024. 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 City employees and offers no matching contributions from the City. 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, 2024 59 15. OTHER REQUIRED INDIVIDUAL FUND DISCLOSURES The City expenditures exceeded the budgeted amounts in the following funds during the year ended September 30, 2024: LID Debt Service Funds-- There is a cumulative fund deficit of $1,983,789. The City expects to eliminate this deficit as assessments are collected on the LID financed projects over time. The city also has $102,791 in an LID Guarantee Fund to offset any shortfalls over time if necessary. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 60 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 $8,564,634; broken down as follows: Beehive Credit Union bank deposits of $87,542; covered by NCUA insurance up to $250,000. DL Evans Bank Bond Reserve Fund deposit of $278,897; covered up to $250,000 by FDIC insurance. Idaho State Local Government Investment Pool of $3,739,956; which is diversified to reduce risk and is mostly invested in US Government securities. The Idaho State Diversified Bond Fund of $111,844; 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 $4,346,396. Long-term Debt – Revenue Allocation (Tax Increment) Bonds do not constitute indebtedness within the meaning of any constitutional or statutory debt limitation or restriction, and does not constitute a general obligation or debt of the City of Rexburg, Idaho, or any municipality, the State of Idaho, or any of its political subdivisions. In no event does this Bond give rise to a general obligation or liability of the Agency, any municipality, the State of Idaho, or any of its political subdivisions, or give rise to a charge against their general credit or taxing powers, or be payable out of any funds or properties other than those of the Agency specifically pledged therefore. Only tax increment property tax revenues, which are paid to the tax increment district for which the bonds were sold, are obligated to pay off the bond. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 61 16. COMPONENT UNIT – REXBURG URBAN RENEWAL AGENCY, continued CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 62 17. INTERFUND TRANSACTIONS Transfers between funds during the year were as follows: Funds Governmental: Transfers Out Transfers In General 4,173,021$ 37,465$ Street Operating 4,313,848 - Recreation - 5,728 Tabernacle - 990,242 Police DARE - 8,500 Police Grant 16,132 - High 5 Grant 5,083 - Emergency Services - 3,060,329 Joint Fire Equipment - 210,000 Madison County Fire District 1,228,670 - Fire Impact Fee Fund 40,008 - Rexburg Rapids Operations - 25,008 Legacy Flight Museum - 15,000 New City/Police Building - 425,004 Street Impact Fee 508,931 - Arts Promulgation 25,008 - Parks Impact Fee 30,000 - Madison Trails - 60,000 Romance Theatre - 225,071 Park Contruction - 100,000 Street Reconstruction 2,823,585 3,915,096 New Streets - 923,931 Airport Operations - 20,000 Airport Construction - 32,943 Airport Relocation Reserve - 10,008 Golf Course Operations 59,196 25,300 Golf Course Debt Service - 211,850 LID Construction - 3,526,418 LID Debt Service 735,331 - Rexburg Cultural Arts - 134,195 501 C3 3,275 - 13,962,088$ 13,962,088$ CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 63 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 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 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. CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 64 17. INTERFUND TRANSACTIONS (continued) The following is a schedule of interfund receivables and payables as of September 30, 2024: Primary Government General Fund* 2,680,305$ -$ Police Small Grants Fund - 12,322 Geographic Information Systems Fund - 40,281 Wildland ESD Paramedic Care Unit Fund - 447,948 LID Debt Service Funds - 2,107,864 North Interchange Construction Fund - 71,890 2,680,305$ 2,680,305$ Due To Other Funds Due From Other Funds *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 estimated at $118,135,295. This was placed on the tax rolls for Madison County on January 1, 2021 effecting the taxes being collected starting in December of 2021, subsequent to the current fiscal year of the City. The abatement will be 90% of the tax in the first year, 80% in the second year, 60% in the third year, 40% in the fourth year and 20% in the final year. The value of the property will be adjusted for depreciation for each year of the abatement. After the fifth year the property will go back on as new construction at the full cost of the new project. The effect of the abatement to the City will be the mill levy for each year multiplied by the value of the new construction at the percent of reduction as listed above for each year the abatement is in place. As of the date of these financial statements, Madison County has not determined the amount of lost revenue resulting from this tax abatement. Therefore, the financial effects of the tax abatements have not been recognized. The City will continue to work with the County to ascertain the financial impact of these tax abatements. Any adjustments required to the financial statements will be made in the period in which the information becomes available CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 65 19. FUND BALANCES Detail of constraints on fund balances of governmental funds as of September 30, 2024: Non‐Major  Total  Capital Projects  General Streets Emergency  Services LID Debt  Service Funds LID  Construction  Funds Fund Balances: Nonspendable: Inventory 58,965$         ‐$                    ‐$                    ‐$                     ‐$                     ‐$                     58,965$           ‐$                        Restricted for: Streets ‐                     4,754,383     ‐                      ‐                        ‐                        ‐                       4,754,383       4,754,383              Emergency Services ‐                      ‐                      ‐                      ‐                        ‐                        ‐                        ‐                        ‐                          Police Impact ‐                      ‐                      ‐                      ‐                        ‐                       360,247          360,247          360,247                 DARE ‐                      ‐                      ‐                      ‐                        ‐                       24,076            24,076             ‐                          Police Drug Enforcement ‐                      ‐                      ‐                      ‐                        ‐                       29,229            29,229             ‐                          Joint Fire Equipment ‐                      ‐                      ‐                      ‐                        ‐                       1,435,018       1,435,018       1,435,018              Madison County Fire Prot. District ‐                      ‐                      ‐                      ‐                        ‐                       1,288,420       1,288,420        ‐                          Fire Impact ‐                      ‐                      ‐                      ‐                        ‐                       3,023               3,023               3,023                      ESD Rexburg Employees ‐                      ‐                      ‐                      ‐                        ‐                       26,611            26,611             ‐                          Legacy Flight Museum ‐                      ‐                      ‐                      ‐                        ‐                       345,798          345,798           ‐                          Street Impact ‐                      ‐                      ‐                      ‐                        ‐                       2,251,792       2,251,792       2,251,792              ESD Paramedic Care ‐                      ‐                      ‐                      ‐                        ‐                       685,551          685,551           ‐                          Parks Impact ‐                      ‐                      ‐                      ‐                        ‐                       538,703          538,703          538,703                 Trails of Madison County ‐                      ‐                      ‐                      ‐                        ‐                       292,845          292,845          292,845                 Riverside Park Construction ‐                      ‐                      ‐                      ‐                        ‐                       318,386          318,386          318,386                 Airport Operations ‐                      ‐                      ‐                      ‐                        ‐                       780                  780                   ‐                          Airport Construction ‐                      ‐                      ‐                      ‐                        ‐                       38,678            38,678            38,678                   Golf Operations ‐                      ‐                      ‐                      ‐                        ‐                       602,667          602,667           ‐                          Golf Construction ‐                      ‐                      ‐                      ‐                        ‐                       41,601            41,601            41,601                   Shop with a Cop ‐                      ‐                      ‐                      ‐                        ‐                       48,617            48,617             ‐                          Ambulance Capital Replacement ‐                      ‐                      ‐                      ‐                        ‐                       428,854          428,854          428,854                 City 501c3 Foundation ‐                      ‐                      ‐                      ‐                        ‐                       5,069               5,069                ‐                          Committed to: Stabilization 5,773,800     ‐                      ‐                      ‐                        ‐                        ‐                       5,773,800        ‐                          Recreation ‐                      ‐                      ‐                      ‐                        ‐                       2,905               2,905                ‐                          Tabernacle ‐                      ‐                      ‐                      ‐                        ‐                       146,558          146,558          146,558                 Revolving Loan ‐                      ‐                      ‐                      ‐                        ‐                       1,603,932       1,603,932        ‐                          Rexburg Rapids Operations ‐                      ‐                      ‐                      ‐                        ‐                       49,640            49,640            49,640                   Building Safety Comm Dev ‐                      ‐                      ‐                      ‐                        ‐                       1,669,039       1,669,039        ‐                          Joint City Hall Police Building Capital Reserv ‐                      ‐                      ‐                      ‐                        ‐                       1,681,216       1,681,216       1,681,216              Arts Promulgation ‐                      ‐                      ‐                      ‐                        ‐                       216,251          216,251           ‐                          Romance Theatre ‐                      ‐                      ‐                      ‐                        ‐                       19,616            19,616            19,616                   Airport Relation Reserve ‐                      ‐                      ‐                      ‐                        ‐                       1,110,869       1,110,869       1,110,869              Fiber Initiative Construction ‐                      ‐                      ‐                      ‐                        ‐                       127,506          127,506          127,506                 Entrepreneurial Program ‐                      ‐                      ‐                      ‐                        ‐                       60,367            60,367             ‐                          Shop with a Cop ‐                      ‐                      ‐                      ‐                        ‐                       161,070          161,070          161,070                 Fiber Operations ‐                      ‐                      ‐                      ‐                        ‐                       82,192            82,192             ‐                          Assigned to:‐                      ‐                      ‐                      ‐                        ‐                        ‐                        ‐                        ‐                          Unassigned:27,426           ‐                      ‐                     (1,983,789)      ‐                        ‐                       (1,956,363)      ‐                          Total Fund Balances 5,860,191$  4,754,383$   ‐$                   (1,983,789)$   ‐$                    15,697,126$  24,327,911$  13,760,005$         Major Revenue Funds General Streets Emergency  Services LID Debt  Service Funds LID  Construction  Funds Non‐Major  Funds  Total   Capital Projects  Fund Balances: Nonspendable 58,965$         ‐$               ‐$               ‐$                 ‐$                 ‐$                 58,965$           ‐$                        Restricted ‐                 4,754,383     ‐                  ‐                   ‐                  8,765,965       13,520,348    10,463,530            Committed 5,773,800     ‐                  ‐                  ‐                   ‐                  6,931,161       12,704,961    3,296,475              Assigned ‐                  ‐                  ‐                  ‐                   ‐                   ‐                    ‐                    ‐                          Unassigned 27,426           ‐                  ‐                 (1,983,789)      ‐                   ‐                   (1,956,363)      ‐                          Total Fund Balances 5,860,191$  4,754,383$   ‐$              (1,983,789)$   ‐$                15,697,126$  24,327,911$  13,760,005$         Major Revenue Funds CITY OF REXBURG, IDAHO NOTES TO FINANCIAL STATEMENTS September 30, 2024 66 19. FUND BALANCES (continued) 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. 20. PRIOR PERIOD ADJUSTMENT During fiscal year 2024, the City determined that funding related to Coronavirus State and Local Recovery Funds that were received in advance in a previous year were recognized as revenue rather than recorded as grants received in advance for the unspent portion of funds at September 30, 2022. Therefore, revenue and liabilities in fiscal years 2022 and 2023 were understated by $1 million. The effect of correcting that error is shown in column C of the table below. Adjustments to and Restatements of Beginning Balances During fiscal year 2024, changes to or within the financial reporting entity and an error correction resulted in adjustments to and restatements of beginning net position and fund net position, as follows: Fiber Initiative Fund Governmental Activities September 30, 2023, as previously reported 1,130,647$ 98,504,358$ Correction of an error (1,000,000) (1,000,000) September 30, 2023, as restated 130,647$ 97,504,358$ Funds Reporting Units Affected by Adjustments to and Restatements of Beginning Balances Government-wide REQUIRED SUPPLEMENTARY INFORMATION See Independent Auditors’ Report 67 Actual Variance to Original Final Amounts Final Budget Budget Budget Budgetary (Deficiency)/ Amount Amount Basis Excess REVENUES Taxes 11,071,500$ 11,071,500$ 10,698,062$ (373,438)$ Grants and Contributions 1,434,500 1,434,500 883,212 (551,288) Fees and Charges 4,646,600 4,646,600 4,634,183 (12,417) Investment/Interest Income 670,000 670,000 1,124,410 454,410 Transfers in from Other Funds 10,000 10,000 37,465 27,465 Miscellaneous 14,200 14,200 209,756 195,556 TOTAL REVENUES 17,846,800 17,846,800 17,587,088 (259,712) EXPENDITURES General and Administrative 5,506,400 5,561,900 5,546,399 15,501 Public Safety 6,826,000 7,002,600 7,038,694 (36,094) Parks and Recreation and Arts 1,279,500 1,300,000 1,389,302 (89,302) Capital Improvements: 1,199,600 1,199,600 530,813 668,787 Transfers Out 3,858,200 4,161,100 4,173,021 (11,921) Contingency 413,000 5,100 - 5,100 TOTAL EXPENDITURES 19,082,700 19,230,300 18,678,229 552,071 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,235,900) (1,383,500) (1,091,141) 292,359 FUND BALANCE, BEGINNING OF YEAR 6,951,332 6,951,332 6,951,332 - FUND BALANCE, END OF YEAR 5,715,432$ 5,567,832$ 5,860,191$ 292,359$ CITY OF REXBURG, IDAHO BUDGETARY COMPARISON SCHEDULE GENERAL FUND For the year ended September 30, 2024 See Independent Auditors’ Report 68 Actual Variance Original Final Amounts to Final Budget Budget Budget Budgetary Under Amount Amount Basis (Over) REVENUES Taxes 3,167,600$ 3,167,600$ 4,156,919$ 989,319$ Grants and Contributions 1,000,000 3,746,200 4,753,757 1,007,557 Fees and Charges 2,209,000 2,459,000 2,558,487 99,487 Transfers in from Other Funds 2,755,200 2,755,200 4,839,027 2,083,827 Miscellaneous 32,000 32,000 91,790 59,790 TOTAL REVENUES 9,163,800 12,160,000 16,399,980 4,239,980 EXPENDITURES Streets 2,858,000 2,845,500 2,314,655 530,845 Capital Improvements: 2,785,400 5,531,600 5,927,144 (395,544) Transfers Out 4,537,700 4,787,700 7,137,433 (2,349,733) Contingency 462,900 475,400 - 475,400 TOTAL EXPENDITURES 10,644,000 13,640,200 15,379,232 (1,739,032) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (1,480,200) (1,480,200) 1,020,748 2,500,948 FUND BALANCE, BEGINNING OF YEAR 3,733,635 3,733,635 3,733,635 - FUND BALANCE, END OF YEAR 2,253,435$ 2,253,435$ 4,754,383$ 2,500,948$ CITY OF REXBURG, IDAHO BUDGETARY COMPARISON SCHEDULE STREET FUND For the year ended September 30, 2024 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 2,284,100$ 2,358,900$ 2,352,890$ (6,010)$ Fees and Charges 531,700 531,700 650,506 118,806 Transfers in from Other Funds 2,747,100 2,896,700 3,060,329 163,629 Miscellaneous - - 1,900 1,900 TOTAL REVENUES 5,562,900 5,787,300 6,065,625 278,325 EXPENDITURES Public Safety 5,551,900 5,551,900 5,764,032 (212,132) Capital Improvements: 11,000 235,400 301,593 (66,193) TOTAL EXPENDITURES 5,562,900 5,787,300 6,065,625 (278,325) 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 FUND For the year ended September 30, 2024 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 694,700$ 694,700$ 500,575$ (194,125)$ Investment/Interest Income - - 82,518 82,518 TOTAL REVENUES 694,700 694,700 583,093 (111,607) EXPENDITURES Transfers Out 500,000 500,000 735,331 (235,331) Contingency 194,700 194,700 - 194,700 TOTAL EXPENDITURES 694,700 694,700 735,331 (40,631) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - (152,238) (152,238) FUND BALANCE, BEGINNING OF YEAR (1,831,551) (1,831,551) (1,831,551) - FUND BALANCE, END OF YEAR (1,831,551)$ (1,831,551)$ (1,983,789)$ (152,238)$ CITY OF REXBURG, IDAHO BUDGETARY COMPARISON SCHEDULE LID DEBT SERVICE FUNDS For the year ended September 30, 2024 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 -$ -$ 796,216$ 796,216$ Transfers in from Other Funds 2,950,000 2,950,000 3,526,418 576,418 TOTAL REVENUES 2,950,000 2,950,000 4,322,634 1,372,634 EXPENDITURES Streets 500,000 500,000 809,886 (309,886) Capital Improvements: 2,450,000 2,450,000 2,823,585 (373,585) TOTAL EXPENDITURES 2,950,000 2,950,000 3,633,471 (683,471) EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - - 689,163 689,163 FUND BALANCE, BEGINNING OF YEAR (689,163) (689,163) (689,163) - FUND BALANCE, END OF YEAR (689,163)$ (689,163)$ -$ 689,163$ CITY OF REXBURG, IDAHO BUDGETARY COMPARISON SCHEDULE LID CONSTRUCTION FUNDS For the year ended September 30, 2024 See Independent Auditors’ Report 72 Net Pension Liability % Share Amount of Proportionate Share of Net Pension Liability Covered Employee Payroll Net Pension Liability % of Covered Payroll Plan Fiduciary Net Position as a % of Total Pension Liability 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% 2024 0.2780816% 10,402,043 12,686,660 81.99% 85.54% Date reported in measured as of June 30, 2024 (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% 2024 1,623,584 1,625,948 2,364 13,264,572 12.24% Date reported in measured as of September 30, 2024 (reporting date) 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 Last 10 Fiscal Years See Independent Auditors’ Report 73 Net Pension Liability % Share Amount of Proportionate Share of Net Pension Liability Covered Employee Payroll Net Pension Liability % of Covered Payroll Plan Fiduciary Net Position as a % of Total Pension Liability 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% 2024 0.0080118% 299,694 331,943 90.28% 85.54% Date reported in measured as of June 30, 2024 (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% 2024 42,568 42,909 341 314,622 13.53% Date reported in measured as of September 30, 2024 (reporting date) Last 10 Fiscal Years Schedule of Employer Contributions PERSI Base FRF Plan Last 10 Fiscal Years CITY OF REXBURG, IDAHO Schedule of Employer's Share of Net Pension Liability PERSI Base FRF Plan See Independent Auditors’ Report 74 Net Pension Liability % Share Amount of Proportionate Share of Net Pension Liability Covered Employee Payroll Net Pension Liability % of Covered Payroll Plan Fiduciary Net Position as a % of Total Pension Liability 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% 2024 0.3452044% (868,866) 331,943 -261.75% 207.66% Date reported in measured as of June 30, 2024 (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% 2024 - - - 314,622 0.00% Date reported in measured as of September 30, 2024 (reporting date) FRF Excess Plan Last 10 Fiscal Years CITY OF REXBURG, IDAHO Schedule of Employer's Share of Net Pension Liability FRF Excess Plan Last 10 Fiscal Years Schedule of Employer Contributions OTHER SUPPLEMENTARY INFORMATION CITY OF REXBURG, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 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 23,334$ 287,431$ 360,769$ 26,994$ 29,229$ -$ -$ 1,233,436$ Receivables 5,500 - - 2,838 - 13,892 - 224,069 TOTAL ASSETS 28,834$ 287,431$ 360,769$ 29,832$ 29,229$ 13,892$ -$ 1,457,505$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable 6,757$ 138,462$ 522$ 5,756$ -$ -$ -$ 22,487$ Accrued Payroll 992 1,811 - - - 1,570 - - Due to Other Funds - - - - - 12,322 - - Other 18,180 600 - - - - - - TOTAL LIABILITIES 25,929 140,873 522 5,756 - 13,892 - 22,487 DEFERRED INFLOWS OF RESOURCES Unavailable Revenues - - - - - - - - FUND BALANCES (DEFICIT) Restricted - - 360,247 24,076 29,229 - - 1,435,018 Committed 2,905 146,558 - - - - - - TOTAL FUND BALANCES 2,905 146,558 360,247 24,076 29,229 - - 1,435,018 TOTAL LIABILITIES AND FUND BALANCES 28,834$ 287,431$ 360,769$ 29,832$ 29,229$ 13,892$ -$ 1,457,505$ CITY OF REXBURG, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 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 1,289,275$ 3,809$ 26,611$ 443,483$ 76,699$ 343,647$ 1,745,178$ -$ Receivables 9,973 - - 1,160,449 - 2,500 585 69,365 TOTAL ASSETS 1,299,248$ 3,809$ 26,611$ 1,603,932$ 76,699$ 346,147$ 1,745,763$ 69,365$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable 855$ 786$ -$ -$ 23,749$ 349$ 57,020$ 16,820$ Accrued Payroll - - - - 2,310 - 19,704 12,264 Due to Other Funds - - - - - - - 40,281 Other - - - - 1,000 - - - TOTAL LIABILITIES 855 786 - - 27,059 349 76,724 69,365 DEFERRED INFLOWS OF RESOURCES Unavailable Revenues 9,973 - - - - - - - FUND BALANCES (DEFICIT) Restricted 1,288,420 3,023 26,611 - - 345,798 - - Committed - - - 1,603,932 49,640 - 1,669,039 - TOTAL FUND BALANCES 1,288,420 3,023 26,611 1,603,932 49,640 345,798 1,669,039 - TOTAL LIABILITIES AND FUND BALANCES 1,299,248$ 3,809$ 26,611$ 1,603,932$ 76,699$ 346,147$ 1,745,763$ 69,365$ CITY OF REXBURG, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 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 1,681,216$ 2,253,652$ 216,251$ -$ 595,812$ 292,180$ 134,667$ 318,386$ Receivables - - - 1,346,014 - 21,195 - - TOTAL ASSETS 1,681,216$ 2,253,652$ 216,251$ 1,346,014$ 595,812$ 313,375$ 134,667$ 318,386$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable -$ 1,860$ -$ 44,002$ 57,109$ 20,530$ 112,446$ -$ Accrued Payroll - - - 168,513 - - 1,755 - Due to Other Funds - - - 447,948 - - - - Other - - - - - - 850 - TOTAL LIABILITIES - 1,860 - 660,463 57,109 20,530 115,051 - DEFERRED INFLOWS OF RESOURCES Unavailable Revenues - - - - - - - - FUND BALANCES (DEFICIT) Restricted - 2,251,792 - 685,551 538,703 292,845 - 318,386 Committed 1,681,216 - 216,251 - - - 19,616 - TOTAL FUND BALANCES 1,681,216 2,251,792 216,251 685,551 538,703 292,845 19,616 318,386 TOTAL LIABILITIES AND FUND BALANCES 1,681,216$ 2,253,652$ 216,251$ 1,346,014$ 595,812$ 313,375$ 134,667$ 318,386$ CITY OF REXBURG, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 See Independent Auditors’ Report 78 Fund Number 47 48 49 50 51 81 82 83 Airport Golf Golf Rexburg Airport Airport Relocation Course Course Cultural Fiber Entrepreneurial Operation Construction Reserve Operations Construction Arts Initiative Programs ASSETS Fund Fund Fund Fund Fund Fund Fund Fund Cash and Short Term Investments 4,654$ 46,738$ 1,110,869$ 690,951$ 1,601$ 3,170$ 127,782$ 66,867$ Receivables 3,231 114,374 - 2,160 40,000 - - 6,279 TOTAL ASSETS 7,885$ 161,112$ 1,110,869$ 693,111$ 41,601$ 3,170$ 127,782$ 73,146$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable 6,600$ 122,434$ -$ 64,019$ -$ 170$ 276$ 12,779$ Accrued Payroll 505 - - 25,425 - 3,000 - - Due to Other Funds - - - - - - - - Other - - - 1,000 - - - - TOTAL LIABILITIES 7,105 122,434 - 90,444 - 3,170 276 12,779 DEFERRED INFLOWS OF RESOURCES Unavailable Revenues - - - - - - - - FUND BALANCES (DEFICIT) Restricted 780 38,678 - 602,667 41,601 - - - Committed - - 1,110,869 - - - 127,506 60,367 TOTAL FUND BALANCES 780 38,678 1,110,869 602,667 41,601 - 127,506 60,367 TOTAL LIABILITIES AND FUND BALANCES 7,885$ 161,112$ 1,110,869$ 693,111$ 41,601$ 3,170$ 127,782$ 73,146$ CITY OF REXBURG, IDAHO COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS September 30, 2024 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 -$ 133,266$ 82,784$ 48,617$ 428,854$ 5,069$ 14,133,281$ Receivables 153,394 37,042 - - - - 3,212,860 TOTAL ASSETS 153,394$ 170,308$ 82,784$ 48,617$ 428,854$ 5,069$ 17,346,141$ LIABILITIES AND FUND BALANCES LIABILITIES Accounts Payable 81,504$ 9,162$ 592$ -$ -$ -$ 807,046$ Accrued Payroll - - - - - - 237,849 Due to Other Funds 71,890 - - - - - 572,441 Other - 76 - - - - 21,706 TOTAL LIABILITIES 153,394 9,238 592 - - - 1,639,042 DEFERRED INFLOWS OF RESOURCES Unavailable Revenues - - - - - - 9,973 FUND BALANCES (DEFICIT) Restricted - - - 48,617 428,854 5,069 8,765,965 Committed - 161,070 82,192 - - - 6,931,161 TOTAL FUND BALANCES - 161,070 82,192 48,617 428,854 5,069 15,697,126 TOTAL LIABILITIES AND FUND BALANCES 153,394$ 170,308$ 82,784$ 48,617$ 428,854$ 5,069$ 17,346,141$ CITY OF REXBURG, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE— NONMAJOR GOVERNMENTAL FUNDS Year Ended September 30, 2024 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 Fund Fund Fund Fund Fund Fund Fund Fund REVENUES Taxes -$ -$ -$ -$ -$ -$ -$ -$ Grants and Contributions/Sale of Capacity 21,633 24,304 - 8,500 - 56,165 - - Fees and Charges 240,789 24,006 61,244 - - - - 317,369 Investment/Interest Income - 2,464 3,200 - 2 - 1,928 39,209 Miscellaneous 2,186 - - - 16,166 - - 40,000 TOTAL REVENUES 264,608 50,774 64,444 8,500 16,168 56,165 1,928 396,578 EXPENDITURES Current General and Administrative - - - - - - 232 - Public Safety - - - 14,663 3,632 40,033 - - Parks and Recreation and Arts 261,703 148,013 - - - - - 3,159 Streets - - - - - - - - Debt Service Interest on Debt - - - - - - - - Principal on Debt - - - - - - - - Capital Improvements: General and Administrative - - - - - - 63,500 - Public Safety - - - - - - - 337,698 Parks and Recreation and Arts - 820,292 - - - - - - Streets - - - - - - - - TOTAL EXPENDITURES 261,703 968,305 - 14,663 3,632 40,033 63,732 340,857 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 2,905 (917,531) 64,444 (6,163) 12,536 16,132 (61,804) 55,721 OTHER SOURCES (USES) Transfers In 5,728 990,242 - 8,500 - - - 210,000 Transfers Out - - - - - (16,132) (5,083) - TOTAL OTHER SOURCES (USES)5,728 990,242 - 8,500 - (16,132) (5,083) 210,000 REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES)8,633 72,711 64,444 2,337 12,536 - (66,887) 265,721 FUND BALANCES, BEGINNING OF YEAR (5,728) 73,847 295,803 21,739 16,693 - 66,887 1,169,297 Prior Period adjustment - - - - - - - - (5,728) 73,847 295,803 21,739 16,693 - 66,887 1,169,297 FUND BALANCES, END OF YEAR 2,905$ 146,558$ 360,247$ 24,076$ 29,229$ -$ -$ 1,435,018$ FUND BALANCE, BEGINNING OF YEAR, as restated CITY OF REXBURG, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE— NONMAJOR GOVERNMENTAL FUNDS Year Ended September 30, 2024 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 1,135,387$ -$ -$ -$ -$ -$ -$ -$ Grants and Contributions/Sale of Capacity - - - - - 197,639 - 259,296 Fees and Charges - 33,618 - 4,222 518,246 21,167 1,392,272 259,296 Investment/Interest Income 55,983 1,084 1,193 77,780 3,444 251 48,898 - Miscellaneous - - - - - 150,000 - 558 TOTAL REVENUES 1,191,370 34,702 1,193 82,002 521,690 369,057 1,441,170 519,150 EXPENDITURES Current General and Administrative - - - 11,687 - - 922,058 519,150 Public Safety 100 - - - - - - - Parks and Recreation and Arts - - - - 581,072 111,465 - - Streets - - - - - - - - Debt Service Interest on Debt - - - - - - - - Principal on Debt - - - - - - - - Capital Improvements: General and Administrative - - - - - - 50,091 - Public Safety 300,657 - - - - - - - Parks and Recreation and Arts - - - - 21,444 215,000 - - Streets - - - - - - - - TOTAL EXPENDITURES 300,757 - - 11,687 602,516 326,465 972,149 519,150 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 890,613 34,702 1,193 70,315 (80,826) 42,592 469,021 - OTHER SOURCES (USES) Transfers In - - - - 25,008 15,000 - - Transfers Out (1,228,670) (40,008) - - - - - - TOTAL OTHER SOURCES (USES)(1,228,670) (40,008) - - 25,008 15,000 - - REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES)(338,057) (5,306) 1,193 70,315 (55,818) 57,592 469,021 - FUND BALANCES, BEGINNING OF YEAR 1,626,477 8,329 25,418 1,533,617 105,458 288,206 1,200,018 - Prior Period adjustment - - - - - - - - 1,626,477 8,329 25,418 1,533,617 105,458 288,206 1,200,018 - FUND BALANCES, END OF YEAR 1,288,420$ 3,023$ 26,611$ 1,603,932$ 49,640$ 345,798$ 1,669,039$ -$ FUND BALANCE, BEGINNING OF YEAR, as restated CITY OF REXBURG, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE— NONMAJOR GOVERNMENTAL FUNDS Year Ended September 30, 2024 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 - - - 58,743 - 21,195 - 25,999 Fees and Charges - 530,017 59,477 1,506,802 159,493 - 45,000 - Investment/Interest Income 56,212 151,274 57 - 9,480 - - - Miscellaneous - - - - 107,675 - - - TOTAL REVENUES 56,212 681,291 59,534 1,565,545 276,648 21,195 45,000 25,999 EXPENDITURES Current General and Administrative - - - - - - - - Public Safety - - - 1,432,339 - - - - Parks and Recreation and Arts - - - - - - 120,328 - Streets - - - - - - - - Debt Service Interest on Debt - - - - - - - - Principal on Debt - - - - - - - - Capital Improvements: General and Administrative - - - - - - - - Public Safety - - - 39,999 - - - - Parks and Recreation and Arts - - - - 128,660 48,225 164,171 - Streets - - - - - - - - TOTAL EXPENDITURES - - - 1,472,338 128,660 48,225 284,499 - EXCESS OF REVENUES OVER (UNDER) EXPENDITURES 56,212 681,291 59,534 93,207 147,988 (27,030) (239,499) 25,999 OTHER SOURCES (USES) Transfers In 425,004 - - - - 60,000 225,071 100,000 Transfers Out - (508,931) (25,008) - (30,000) - - - TOTAL OTHER SOURCES (USES)425,004 (508,931) (25,008) - (30,000) 60,000 225,071 100,000 REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES)481,216 172,360 34,526 93,207 117,988 32,970 (14,428) 125,999 FUND BALANCES, BEGINNING OF YEAR 1,200,000 2,079,432 181,725 592,344 420,715 259,875 34,044 192,387 Prior Period adjustment - - - - - - - - 1,200,000 2,079,432 181,725 592,344 420,715 259,875 34,044 192,387 FUND BALANCES, END OF YEAR 1,681,216$ 2,251,792$ 216,251$ 685,551$ 538,703$ 292,845$ 19,616$ 318,386$ FUND BALANCE, BEGINNING OF YEAR, as restated CITY OF REXBURG, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE— NONMAJOR GOVERNMENTAL FUNDS Year Ended September 30, 2024 See Independent Auditors’ Report 83 47 48 49 50 51 81 82 83 Airport Golf Golf Rexburg Airport Airport Relocation Course Course Cultural Fiber Entrepreneurial Operation Construction Reserve Operations Construction Arts Initiative Programs Fund Fund Fund Fund Fund Fund Fund Fund REVENUES Taxes -$ -$ -$ -$ -$ -$ -$ -$ Grants and Contributions/Sale of Capacity 20,000 150,868 - 35,000 - 15,001 270,000 332,876 Fees and Charges 27,785 - - 1,555,865 - 84,814 - 4,170 Investment/Interest Income - 2,000 78,973 9,372 800 - - - Miscellaneous - - - 33,866 - - - - TOTAL REVENUES 47,785 152,868 78,973 1,634,103 800 99,815 270,000 337,046 EXPENDITURES Current General and Administrative 51,250 - - - - - - 343,717 Public Safety - - - - - - - - Parks and Recreation and Arts - - - 1,203,677 - 234,010 - - Streets - - - - - - - - Debt Service Interest on Debt - - - - 7,514 - - - Principal on Debt - - - - 51,682 - - - Capital Improvements: General and Administrative - 200,028 - - - - 273,141 - Public Safety - - - - - - - - Parks and Recreation and Arts - - - 209,826 - - - - Streets - - - - - - - - TOTAL EXPENDITURES 51,250 200,028 - 1,413,503 59,196 234,010 273,141 343,717 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES (3,465) (47,160) 78,973 220,600 (58,396) (134,195) (3,141) (6,671) OTHER SOURCES (USES) Transfers In 20,000 32,943 10,008 25,300 211,850 134,195 - - Transfers Out - - - (59,196) - - - - TOTAL OTHER SOURCES (USES)20,000 32,943 10,008 (33,896) 211,850 134,195 - - REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES)16,535 (14,217) 88,981 186,704 153,454 - (3,141) (6,671) FUND BALANCES, BEGINNING OF YEAR (15,755) 52,895 1,021,888 415,963 (111,853) - 1,130,647 67,038 Prior Period adjustment - - - - - - (1,000,000) - (15,755) 52,895 1,021,888 415,963 (111,853) - 130,647 67,038 FUND BALANCES, END OF YEAR 780$ 38,678$ 1,110,869$ 602,667$ 41,601$ -$ 127,506$ 60,367$ FUND BALANCE, BEGINNING OF YEAR, as restated CITY OF REXBURG, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE— NONMAJOR GOVERNMENTAL FUNDS Year Ended September 30, 2024 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 -$ -$ -$ -$ -$ -$ 1,135,387$ Grants and Contributions/Sale of Capacity 226,533 11,495 - 20,380 - 3,275 1,758,902 Fees and Charges - 268,770 90,000 - - - 7,204,422 Investment/Interest Income - 35,999 - 2,123 22,772 - 604,498 Miscellaneous - - - - - - 350,451 TOTAL REVENUES 226,533 316,264 90,000 22,503 22,772 3,275 11,053,660 EXPENDITURES Current General and Administrative - - 7,808 - - - 1,855,902 Public Safety - - - 17,853 - - 1,508,620 Parks and Recreation and Arts - - - - - - 2,663,427 Streets 55,400 54,880 - - - - 110,280 Debt Service Interest on Debt - - - - - - 7,514 Principal on Debt - - - - - - 51,682 Capital Improvements: General and Administrative - - - - - - 586,760 Public Safety - - - - - - 678,354 Parks and Recreation and Arts - - - - - - 1,607,618 Streets 171,133 943,728 - - - - 1,114,861 TOTAL EXPENDITURES 226,533 998,608 7,808 17,853 - - 10,185,018 EXCESS OF REVENUES OVER (UNDER) EXPENDITURES - (682,344) 82,192 4,650 22,772 3,275 868,642 OTHER SOURCES (USES) Transfers In - - - - - - 2,498,849 Transfers Out - - - - - (3,275) (1,916,303) TOTAL OTHER SOURCES (USES)- - - - - (3,275) 582,546 REVENUES OVER (UNDER) EXPENDITURES AND OTHER SOURCES (USES)- (682,344) 82,192 4,650 22,772 - 1,451,188 FUND BALANCES, BEGINNING OF YEAR - 843,414 - 43,967 406,082 5,069 15,245,938 Prior Period adjustment - - - - - - (1,000,000) - 843,414 - 43,967 406,082 5,069 14,245,938 FUND BALANCES, END OF YEAR -$ 161,070$ 82,192$ 48,617$ 428,854$ 5,069$ 15,697,126$ FUND BALANCE, BEGINNING OF YEAR, as restated CITY OF REXBURG, IDAHO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2024 85 Assistance Passthrough Listing Award Number Number Expenditures U.S. Department of Housing and Urban Development Passed Through Idaho Department of Commerce: Community Development Block Grant 14.228 HUD021 332,126$ Community Development Block Grant HUD022 244,219 Total U.S. Department of Housing and Urban Development 576,345 U.S. Department of Justice Direct Awards Public Safety Partnership and Community Policing Grants 16.710 22,153$ Total U.S. Department of Justice 22,153 U.S. Department of Transportation Passed Through Idaho Transportation Department Airport Improvement Program 20.106 117,925$ Highway Planning and Construction 20.205 209,705 State and Community Highway Safety 20.600 24,490 National Priority Safety Programs 20.616 21,811 Enhanced Mobility of Seniors and Individuals with Disabilities 20.513 3,367 Enhanced Mobility of Seniors and Individuals with Disabilities 20.526 2,415 Total U.S. Department of Transportation 379,713 U.S. Department of Treasury Passed Through Idaho Department of Treasury: COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 270,000$ Total U.S. Department of Treasury 270,000 U.S. Environmental Protection Agency Direct Awards Environmental Finance Center Grants 66.203 43,463$ Total U.S. Environmental Protection Agency 43,463 National Endowment for the Humanities Direct Awards Arts and Artifacts Indemnity Program 45.201 10,651$ Total National Endowment for the Humanities 10,651 U.S. Department of Health and Human Services Passed through the Idaho Office of Drug Policy Substance Abuse and Mental Health Services 93.243 4,283$ Total U.S. Department of Health and Human Services 4,283 U.S. Department of Homeland Security Passed through the Idaho Military Division Homeland Security Grant Program 97.067 13,442$ Total U.S. Department of Homeland Security 13,442 Total Federal Assistance 1,320,050$ CITY OF REXBURG, IDAHO NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Year Ended September 30, 2024 86 1. Basis of Presentation The accompanying Schedule of Expenditures of Federal Awards includes the federal award activity of The City of Rexburg, Idaho under programs of the federal government for the year ended September 30, 2024. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the operations of the City, it is not intended to and does not present the financial position or change in net assets of the City. 2. Summary of Significant Accounting Policies Expenditures reported on the Schedule of Expenditures of Federal Awards are reported on the accrual basis of accounting. Such expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain expenditures are not allowed or are limited as to reimbursement. 3. Nonmonetary Transactions There was no nonmonetary assistance received by the City in the current fiscal year. 4. Indirect Cost Rate The City did not use the 10% de minimis indirect cost rate. 5. Subrecipients The City had no subrecipients or subrecipient expenditures. 87 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, 2024, and the related notes to the financial statements, which collectively comprise City of Rexburg, Idaho’s basic financial statements, and have issued our report thereon dated March 19, 2025. 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. 88 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. 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 March 19, 2025 89 Independent auditors’ report on compliance for each major program and on internal control over compliance required by the uniform guidance To the Honorable Mayor and City Council City of Rexburg, Idaho Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited City of Rexburg, Idaho (the City)’s compliance with the types of compliance requirements identified as subject to audit in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major federal programs for the year ended September 30, 2024. The City’s major federal programs are identified in the summary of auditor’s results section of the accompanying schedule of findings and questioned costs. In our opinion, the City complied, in all material respects, with the compliance requirements referred to above that could have a direct and material effect on each of its major federal programs for the year ended September 30, 2024. Basis for Opinion on Each Major Federal Program We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Our responsibilities under those standards and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of Compliance section of our report. We are required to be independent of the City and to meet our other ethical responsibilities, in accordance with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal program. Our audit does not provide a legal determination of the City’s compliance with the compliance requirements referred to above. 90 Responsibility of Management for Compliance Management is responsible for compliance with the requirements referred to above and for the design, implementation, and maintenance of effective internal control over compliance with the requirements of laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s federal programs. Auditor’s Responsibilities for the Audit of Compliance Our objectives are to obtain reasonable assurance about whether material noncompliance with the compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance requirements referred to above is considered material if there is a substantial likelihood that, individually or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance about the City’s compliance with the requirements of each major federal program as a whole. In performing an audit in accordance with generally accepted auditing standards, Government Auditing Standards, and the Uniform Guidance, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material noncompliance, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the City’s compliance with the compliance requirements referred to above and performing such other procedures as we considered necessary in the circumstances.  Obtain an understanding of the City’s internal control over compliance relevant to the audit in order to design audit procedures that are appropriate in the circumstances and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control over compliance. Accordingly, no such opinion is expressed. 91 We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal control over compliance that we identified during the audit. Report on Internal Control Over Compliance A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the Auditor’s Responsibilities for the Audit of Compliance section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control over compliance that we consider to be material weaknesses, as defined above. However, material weaknesses or significant deficiencies in internal control over compliance may exist that have not been identified. Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, no such opinion is expressed. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Idaho Falls, Idaho March 19, 2025 CITY OF REXBURG, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended September 30, 2024 92 Section I - Summary of Auditors’ Results Financial Statements Type of auditors’ report issued: Unqualified Internal control over financial reporting: Material Weaknesses identified? Yes Significant Deficiencies identified? No Noncompliance material to financial statements noted? No Federal Awards Internal control over major programs: Material weaknesses identified? No Significant Deficiencies identified? No Type or auditors’ report issued on compliance for major programs: Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR 200.516 (a)? No Identification of major programs: AL Number(s) Name of Federal Program 21.027 Coronavirus State and Local Recovery Funds 14.228 Community Development Block Grant Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? No CITY OF REXBURG, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS For the Year Ended September 30, 2024 93 Section II – Financial Statement Findings 2024-001 REVENUE RECOGNITION 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: In 2022, funding from COVID grants was received in advance, but was not spent completely the end of that fiscal year. The entire amount was recognized as income in the year received rather than deferred to match spending and SEFA presentation. Cause: Receipt in advance of funding is extremely rare, and the City was uncertain how to account for these funds. Effect: The financial statements were not appropriately presented in accordance with generally accepted accounting principles and Government Auditing Standards in previous years, and had to be corrected in the current year to reflect unspent remaining funds. Recommendation: We recommend regular and ongoing training for GASB reporting standards, and that when unusual events occur, the City of Rexburg should consult with other Cities or research through the GFOA for proper recording. View of Responsible Officials: We concur with the findings above. See CAP for additional response. Section III – Federal Award Findings and Questioned Costs None CITY OF REXBURG, IDAHO SCHEDULE OF PRIOR YEAR FINDINGS AND QUESTIONED COSTS For the Year Ended September 30, 2024 94 Prior Year Findings: 2023-001 – APPLICATION OF GASB STANDARDS - Corrected 95 Corrective Action Plan Finding 2024-001: REVENUE RECOGNITION In 2022, funding from COVID grants was received in advance, but was not spent completely by the end of the fiscal year. The entire amount was recognized as income in the year received rather than deferred to match spending and SEFA presentation. Auditor recommendation is regular and ongoing training for GASB reporting standards, and that when unusual events occur, the City of Rexburg should consult with other Cities or research through the GFOA for proper recording. Comments on Finding and Recommendation(s): We concur with the findings above. Actions Taken or Planned: We have included as part of our grant reconciliation process each year to review all federal/state grants received and determine if they were received in advance. If so, we will then determine if any of that grant revenue should be recognized in the current year received as revenue earned and whatever is not earned we will move it into a liability account for grants received in advance for that respective fund. Once the revenue is earned in subsequent years, we will move that from the liability account to the revenue account. We have completed this process for Fiscal Year 2024 and will continue to do this process each year prior to finalizing the financial statements and SEFA presentation. 3/19/2025 Signature of City Official Date Title: CFO Telephone: 208-372-2343 Email: mattn@rexburg.org