Document Blackfoot_doc_24750b70cb

City of Blackfoot, Idaho Year Ended September 30, 2024 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Table of Contents i Financial Section Independent Auditor's Report 1 Basic Financial Statements Government-Wide Financial Statements Statement of Net Position 4 Statement of Activities 5 Fund Financial Statements Balance Sheet – Governmental Funds 6 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 9 Statement of Net Position – Proprietary 12 Statement of Revenues, Expenses, and Changes in Net Position – Proprietary 13 Statement of Cash Flows – Proprietary 14 Statement of Fiduciary Net Position 15 Statement of Changes in Fiduciary Net Position 16 Notes to Financial Statements 17 Required Supplementary Information Budgetary Comparison Schedule – General and Major Special Revenue Funds 34 Schedule of Employer’s Share of Net Pension Asset and Liability and Schedule of Employer Contributions Schedule of Employer Contributions 38 Supplementary Information Combining Balance Sheet – Nonmajor Governmental Funds 40 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor Governmental Funds 42 Other Reports Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with Government Auditing 44 ---PAGE BREAK--- 1 1740 E Fairview Ave #1116, Meridian, ID 83642 ꞏ qcpas.com ꞏ [PHONE REDACTED] Independent Auditor’s Report Honorable Mayor and City Council City of Blackfoot, Idaho Report on the Financial Statements 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 the City of Blackfoot, 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’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 the City 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 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. Responsibilities of Management for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. In preparing the financial statements, management is required to evaluate whether there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’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. ---PAGE BREAK--- 2 Auditor’s Responsibility for the Audit of the Financial Statements Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally accepted auditing standards and Government Auditing Standards will always detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. Misstatements are considered material if there is a substantial likelihood that individually or in the aggregate, they would influence the judgment made by a reasonable user based on the financial statements. In performing an audit in accordance with generally accepted auditing standards and Government Auditing Standards, we:  Exercise professional judgment and maintain professional skepticism throughout the audit.  Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error, and design and perform audit procedures responsive to those risks. Such procedures include examining, on a test basis, evidence regarding the amounts and disclosures in the financial statements.  Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.  Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluate the overall presentation of the financial statements.  Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable period of time. We are required to communicate with those charged with governance regarding, among other matters, the planned scope and timing of the audit, significant audit findings, and certain internal control-related matters that we identified during the audit. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the budgetary comparison schedules and schedule of employer’s share of net pension asset and liability and schedule of employer contributions listed in the table of contents be presented to supplement the basic financial statements. Such information is the responsibility of management and, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, and 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 ---PAGE BREAK--- 3 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. Management has not included the management’s discussion and analysis information that accounting principles generally accepted in the United States of America require to be presented to supplement the basic financial statements. Such information, although not part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, and historical context. Our opinion on the basic financial statements is not affected by not including this information. Supplementary Information Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. Such information is the responsibility of management and was derived from and relates directly to the underlying accounting and other records used to prepare the basic financial statements. The information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the combining and individual nonmajor fund financial statements are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated February 11, 2025, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, 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’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’s internal control over financial reporting and compliance. Quest CPAs PLLC Meridian, Idaho February 11, 2025 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Net Position September 30, 2024 Governmental Business-Type Total Primary Component Activities Activities Government Unit Assets Current Assets Cash & Investments $7,399,582 $18,569,856 $25,969,438 $2,818,601 Receivables: Taxes 195,760 195,760 15,644 Intergovernmental 589,693 589,693 Accounts 93,068 968,945 1,062,013 Inventory 57,534 57,534 Total Current Assets 8,335,637 19,538,801 27,874,438 2,834,245 Noncurrent Assets Cash & Investments 2,960,737 2,960,737 Restricted Cash & Investments 339,934 339,934 199,973 Nondepreciable Capital Assets 1,251,390 648,105 1,899,495 Depreciable Net Capital Assets 14,977,065 34,594,532 49,571,597 Net Pension Asset - FRF 5,315,328 5,315,328 Total Noncurrent Assets 24,504,520 35,582,571 60,087,091 199,973 Total Assets 32,840,157 55,121,372 87,961,529 3,034,218 Deferred Outflows of Resources Pension Items - Base Plan 1,182,109 208,607 1,390,716 Pension Items - FRF 170,860 170,860 Total Deferred Outflows of Resources 1,352,969 208,607 1,561,576 0 Total Assets and Deferred Outflows of Resources $34,193,126 $55,329,979 $89,523,105 $3,034,218 Liabilities Current Liabilities Accounts Payable & Accrued Expenses $555,589 $912,223 $1,467,812 Deposits 81,678 81,678 Unearned Grant Revenue 0 Accrued Interest 199,366 199,366 Long-Term Liabilities, Current 516,323 946,422 1,462,745 $198,290 Total Current Liabilities 1,071,912 2,139,689 3,211,601 198,290 Noncurrent Liabilities Long-Term Liabilities, Noncurrent 4,976,101 19,503,035 24,479,136 991,679 Total Noncurrent Liabilities 4,976,101 19,503,035 24,479,136 991,679 Total Liabilities 6,048,013 21,642,724 27,690,737 1,189,969 Deferred Inflows of Resources Pension Items - Base Plan 90,324 15,940 106,264 Total Deferred Inflows of Resources 90,324 15,940 106,264 0 Total Liabilities and Deferred Inflows of Resources 6,138,337 21,658,664 27,797,001 1,189,969 Net Position Net Investment in Capital Assets 16,228,455 15,671,315 31,899,770 Restricted - Special Programs 4,433,997 4,433,997 Restricted - Debt Service 258,256 258,256 199,973 Restricted - Capital Projects 141,941 3,795,190 3,937,131 Unrestricted 7,250,396 13,946,554 21,196,950 1,644,276 Total Net Position 28,054,789 33,671,315 61,726,104 1,844,249 Total Liabilities and Deferred Inflows of Resources and Net Position $34,193,126 $55,329,979 $89,523,105 $3,034,218 See Accompanying Notes 4 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Activities Year Ended September 30, 2024 Operating Capital Charges For Grants And Grants And Net (Expense) Functions/Programs Expenses Services Contributions Contributions Revenue Primary Government Governmental Activities Current Expenditures General Government $2,513,140 $458,190 $1,347 ($2,053,603) Public Safety 8,473,988 1,544,960 216,659 (6,712,369) Streets 1,423,970 259,615 359,890 (804,465) Airport 88,256 16,191 152,116 80,051 Culture & Recreation 1,966,551 360,769 34,246 (1,571,536) Capital Assets 1,375,044 (1,375,044) Total Governmental Activities 15,840,949 2,639,725 764,258 $0 (12,436,966) Business-Type Activities Water Services 3,243,516 3,004,940 (238,576) Sewer Services 4,640,037 6,313,125 1,673,088 Sanitation Services 1,728,523 1,790,777 62,254 Total Business-Type Activities 9,612,076 11,108,842 0 0 1,496,766 Total Primary Government 25,453,025 13,748,567 764,258 0 (10,940,200) Component Unit Blackfoot Urban Renewal Agency 783,239 (783,239) Total Component Unit $783,239 $0 $0 $0 ($783,239) Governmental Business-Type Total Primary Component Changes in Net Position Activities Activities Government Unit Net (Expense) Revenue ($12,436,966) $1,496,766 ($10,940,200) ($783,239) General Revenues Taxes, Penalties, & Interest 5,762,164 5,762,164 883,254 Intergovernmental Revenue 5,091,358 5,091,358 Investment Interest 1,532,901 1,532,901 169,155 Miscellaneous 386,033 97,717 483,750 Pension Revenue (Expense) (1,155,638) (246,452) (1,402,090) Transfers 672,524 (672,524) 0 Total 12,289,342 (821,259) 11,468,083 1,052,409 Change in Net Position (147,624) 675,507 527,883 269,170 Net Position - Beginning - As Prev Stated 28,141,584 32,995,808 61,137,392 1,575,079 Restatement - See Note I 60,829 60,829 Net Position - Beginning - As Restated 28,202,413 32,995,808 61,198,221 1,575,079 Net Position - Ending $28,054,789 $33,671,315 $61,726,104 $1,844,249 Program Revenues See Accompanying Notes 5 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Balance Sheet - Governmental Funds September 30, 2024 Page 1 of 3 Parks and General Street Ambulance Recreation Fund Fund Fund Fund Assets Cash & Investments $5,874,078 $1,973,157 $620,046 $34,812 Receivables: Taxes 147,688 20,175 7,782 Intergovernmental 433,457 156,236 Accounts 64,528 28,540 Due From Other Funds Inventory 57,534 Total Assets $6,519,751 $2,178,108 $620,046 $100,128 Liabilities Accounts Payable & Accrued Expenses $393,625 $3,141 $11,854 $93,607 Due To Other Funds Unearned Grant Revenue Total Liabilities 393,625 3,141 11,854 93,607 Deferred Inflows of Resources Unavailable Tax Revenues 117,154 15,346 6,521 Total Deferred Inflows of Resources 117,154 15,346 0 6,521 Fund Balances Restricted - Special Programs 2,159,621 608,192 Restricted - Debt Service Restricted - Capital Projects Unassigned 6,008,972 Total Fund Balances 6,008,972 2,159,621 608,192 0 Total Liabilities and Deferred Inflows of Resources and Fund Balances $6,519,751 $2,178,108 $620,046 $100,128 See Accompanying Notes 6 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Balance Sheet - Governmental Funds September 30, 2024 Page 2 of 3 Nonmajor Total Governmental Governmental Funds Funds Assets Cash & Investments $1,858,226 $10,360,319 Receivables: Taxes 20,115 195,760 Intergovernmental 0 589,693 Accounts 0 93,068 Due From Other Funds 0 0 Inventory 0 57,534 Total Assets $1,878,341 $11,296,374 Liabilities Accounts Payable & Accrued Expenses $53,362 $555,589 Due To Other Funds 0 0 Unearned Grant Revenue 0 0 Total Liabilities 53,362 555,589 Deferred Inflows of Resources Unavailable Tax Revenues 16,854 155,875 Total Deferred Inflows of Resources 16,854 155,875 Fund Balances Restricted - Special Programs 1,666,184 4,433,997 Restricted - Debt Service 0 0 Restricted - Capital Projects 141,941 141,941 Unassigned 0 6,008,972 Total Fund Balances 1,808,125 10,584,910 Total Liabilities and Deferred Inflows of Resources and Fund Balances $1,878,341 $11,296,374 See Accompanying Notes 7 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Balance Sheet - Governmental Funds September 30, 2024 Page 3 of 3 Reconciliation of Total Governmental Fund Balances to Net Position of Governmental Activities Total Governmental Fund Balances $10,584,910 Amounts reported for governmental activities in the statement of net position are different because: Capital assets used in governmental activities are not financial resources and therefore are not reported in the funds. 16,228,455 Certain receivables are not available to pay for current period expenditures and therefore are deferred in the funds. 155,875 Long-term liabilities, including accrued interest, are not due and payable in the current period and therefore are not reported in the funds. (5,492,424) Net pension asset and deferred outflows/inflows related to pensions are not due and payable in the current period and therefore are not reported in the funds. 6,577,973 Net Position of Governmental Activities $28,054,789 See Accompanying Notes 8 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended September 30, 2024 Page 1 of 3 Parks and General Street Ambulance Recreation Fund Fund Fund Fund Revenues Taxes, Penalties, & Interest $4,328,930 $565,786 $241,789 Licenses, Fees, & Charges 523,104 112,000 $938,548 944,010 Intergovernmental Revenue 2,745,814 1,227,268 817,955 21,500 Investment Interest 1,524,126 3,535 1,476 Grants & Miscellaneous 372,389 373,234 120,954 147,924 Total Revenues 9,494,363 2,281,823 1,877,457 1,356,699 Expenditures Current Expenditures General Government 2,120,108 Public Safety 6,733,257 1,657,706 Streets 1,410,018 Airport Culture & Recreation 1,485,886 Debt Service Capital Outlay 128,804 335,424 69,138 Total Expenditures 8,982,169 1,745,442 1,657,706 1,555,024 Excess (Deficiency) of Revenues Over Expenditures 512,194 536,381 219,751 (198,325) Other Financing Sources (Uses) Transfers In 888,574 8,902 244,971 Transfers Out (244,971) (74,627) (99,029) Total Other Financing Sources (Uses) 643,603 (65,725) (99,029) 244,971 Net Change in Fund Balances 1,155,797 470,656 120,722 46,646 Fund Balances - Beginning 4,853,175 1,688,965 487,470 (46,646) Fund Balances - Ending $6,008,972 $2,159,621 $608,192 $0 See Accompanying Notes 9 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended September 30, 2024 Page 2 of 3 Nonmajor Total Governmental Governmental Funds Funds Revenues Taxes, Penalties, & Interest $625,659 $5,762,164 Licenses, Fees, & Charges 122,063 2,639,725 Intergovernmental Revenue 278,821 5,091,358 Investment Interest 3,764 1,532,901 Grants & Miscellaneous 195,446 1,209,947 Total Revenues 1,225,753 16,236,095 Expenditures Current Expenditures General Government 368,409 2,488,517 Public Safety 0 8,390,963 Streets 0 1,410,018 Airport 87,935 87,935 Culture & Recreation 473,516 1,959,402 Debt Service 0 0 Capital Outlay 19,375 552,741 Total Expenditures 949,235 14,889,576 Excess (Deficiency) of Revenues Over Expenditures 276,518 1,346,519 Other Financing Sources (Uses) Transfers In 0 1,142,447 Transfers Out (51,296) (469,923) Total Other Financing Sources (Uses) (51,296) 672,524 Net Change in Fund Balances 225,222 2,019,043 Fund Balances - Beginning 1,582,903 8,565,867 Fund Balances - Ending $1,808,125 $10,584,910 See Accompanying Notes 10 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds Year Ended September 30, 2024 Page 3 of 3 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances - Governmental Funds to the Statement of Activities Net Change in Fund Balances - Total Governmental Funds $2,019,043 Amounts reported for governmental activities in the statement of activities are different because: Government funds report capital outlays as expenditures. However, in the statement of activities the cost of those assets is allocated over their estimated useful lives as depreciation expense or allocated over the appropriate term as amortization expense. This is the excess of capital outlays over (under) depreciation/amortization expense in the current period. (881,959) Revenues in the statement of activities that do not provide current financial resources are deferred in the funds. 0 In the statement of activities, compensated absences are accrued when earned, but the expenditure is reported when due in the governmental funds. (52,312) Changes in net pension asset/liability and related pension deferred outflows/inflows do not provide or require current financial resources and therefore are not reflected in the funds. (1,232,396) Change in Net Position of Governmental Activities ($147,624) See Accompanying Notes 11 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Net Position - Proprietary Funds September 30, 2024 Total Water Sewer Sanitation Enterprise Fund Fund Fund Funds Assets Current Assets Cash & Investments $6,321,137 $10,854,528 $1,394,191 $18,569,856 Receivables: Accounts 294,969 503,102 170,874 968,945 Total Current Assets 6,616,106 11,357,630 1,565,065 19,538,801 Noncurrent Assets Restricted Cash & Investments 81,678 258,256 339,934 Nondepreciable Capital Assets 234,569 413,536 648,105 Depreciable Net Capital Assets 5,249,021 28,554,972 790,539 34,594,532 Total Noncurrent Assets 5,565,268 29,226,764 790,539 35,582,571 Total Assets 12,181,374 40,584,394 2,355,604 55,121,372 Deferred Outflows of Resources Pension Items - Base Plan 72,317 105,694 30,596 208,607 Total Deferred Outflows of Resources 72,317 105,694 30,596 208,607 Total Assets and Deferred Outflows of Resources $12,253,691 $40,690,088 $2,386,200 $55,329,979 Liabilities Current Liabilities Accounts Payable & Accrued Expenses $315,295 $156,682 $440,246 $912,223 Deposits 81,678 81,678 Accrued Interest 199,366 199,366 Long-Term Liabilities, Current 202,461 743,961 946,422 Total Current Liabilities 599,434 1,100,009 440,246 2,139,689 Noncurrent Liabilities Long-Term Liabilities, Noncurrent 1,824,265 17,549,977 128,793 19,503,035 Total Noncurrent Liabilities 1,824,265 17,549,977 128,793 19,503,035 Total Liabilities 2,423,699 18,649,986 569,039 21,642,724 Deferred Inflows of Resources Pension Items - Base Plan 5,526 8,076 2,338 15,940 Total Deferred Inflows of Resources 5,526 8,076 2,338 15,940 Total Liabilities and Deferred Inflows of Resources 2,429,225 18,658,062 571,377 21,658,664 Net Position Net Investment in Capital Assets 3,761,284 11,119,492 790,539 15,671,315 Restricted - Debt Service 258,256 258,256 Restricted - Capital Improvements 2,097,965 1,197,225 500,000 3,795,190 Unrestricted 3,965,217 9,457,053 524,284 13,946,554 Total Net Position 9,824,466 22,032,026 1,814,823 33,671,315 Total Liabilities and Deferred Inflows of Resources and Net Position $12,253,691 $40,690,088 $2,386,200 $55,329,979 See Accompanying Notes 12 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds Year Ended September 30, 2024 Total Water Sewer Sanitation Enterprise Fund Fund Fund Funds Operating Revenues Charges for Services $3,004,940 $6,313,125 $1,790,777 $11,108,842 Miscellaneous 86,635 10,880 202 97,717 Total Operating Revenues 3,091,575 6,324,005 1,790,979 11,206,559 Operating Expenses Personnel 812,476 1,167,242 629,830 2,609,548 Goods & Services 2,063,352 2,192,241 849,177 5,104,770 Total Operating Expenses 2,875,828 3,359,483 1,479,007 7,714,318 Operating Income (Loss) Before Depreciation 215,747 2,964,522 311,972 3,492,241 Depreciation Expense 337,235 1,170,075 249,516 1,756,826 Operating Income (Loss) (121,488) 1,794,447 62,456 1,735,415 Nonoperating Revenues (Expenses) Interest Expense (30,453) (110,479) (140,932) Pension Revenue (Expense) (85,437) (124,869) (36,146) (246,452) Total Nonoperating Revenue (Expenses) (115,890) (235,348) (36,146) (387,384) Income (Loss) Before Transfers (237,378) 1,559,099 26,310 1,348,031 Transfers In 0 Transfers Out (194,397) (333,159) (144,968) (672,524) Change in Net Position (431,775) 1,225,940 (118,658) 675,507 Net Position - Beginning 10,256,241 20,806,086 1,933,481 32,995,808 Net Position - Ending $9,824,466 $22,032,026 $1,814,823 $33,671,315 See Accompanying Notes 13 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Cash Flows - Proprietary Funds Year Ended September 30, 2024 Total Water Sewer Sanitation Enterprise Fund Fund Fund Funds Cash Flows From Operations Receipts from Customers $3,055,426 $6,471,578 $1,786,236 $11,313,240 Payments for Personnel (806,917) (1,156,361) (678,063) (2,641,341) Payments for Goods & Services (1,920,278) (2,306,650) (869,926) (5,096,854) Cash Provided (Used) By Operations 328,231 3,008,567 238,247 3,575,045 Cash Flows From Noncapital Financing Transfers (to) from Other Funds (194,397) (333,159) (144,968) (672,524) Cash Provided (Used) By Noncapital Financing (194,397) (333,159) (144,968) (672,524) Cash Flows From Capital & Related Financing Acquisition of Capital Assets (91,337) (323,798) (415,135) Issuance of Debt 491,175 491,175 Interest Paid on Debt (32,756) (280,543) (313,299) Principal Paid on Debt (198,965) (341,199) (540,164) Cash Provided (Used) By Capital & Related Financing (231,721) (221,904) (323,798) (777,423) Change in Cash & Investments (97,887) 2,453,504 (230,519) 2,125,098 Cash & Investments - Beginning 6,500,702 8,659,280 1,624,710 16,784,692 Cash & Investments - Ending $6,402,815 $11,112,784 $1,394,191 $18,909,790 Cash & Investments Reconciliation Cash & Investments $6,321,137 $10,854,528 $1,394,191 $18,569,856 Restricted Cash & Investments 81,678 258,256 339,934 Total Cash & Investments $6,402,815 $11,112,784 $1,394,191 $18,909,790 Reconciliation of Operating Income (Loss) to Cash Provided (Used) By Operations Operating Income (Loss) ($121,488) $1,794,447 $62,456 $1,735,415 Adjustments to Reconcile Operating Income (Loss) to Cash Provided (Used) by Operations: Depreciation 337,235 1,170,075 249,516 1,756,826 PERSI Contributions 18,482 10,545 (53,392) (24,365) Changes in Assets & Liabilities: Receivables (36,149) 147,573 (4,743) 106,681 Accounts Payable & Accrued Expenses 128,589 (114,409) (20,749) (6,569) Deposits (3,997) (3,997) Compensated Absences 5,559 336 5,159 11,054 Cash Provided (Used) By Operations $328,231 $3,008,567 $238,247 $3,575,045 See Accompanying Notes 14 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Fiduciary Net Position September 30, 2024 Private Purpose Trust Funds Custodial Scholarship Funds Total Assets Cash & Investments $31,358 $17,091 $48,449 Total Assets $31,358 $17,091 $48,449 Liabilities Accounts Payable $1,670 $1,670 Total Liabilities $0 1,670 1,670 Net Position Restricted - Scholarships 31,358 31,358 Held in Trust 15,421 15,421 Total Net Position 31,358 15,421 46,779 Total Liabilities and Net Position $31,358 $17,091 $48,449 See Accompanying Notes 15 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Statement of Changes in Fiduciary Net Position Year Ended September 30, 2024 Private Purpose Trust Funds Custodial Scholarship Funds Total Additions Donations & Fundraising $28,296 $39,837 $68,133 Total Additions 28,296 39,837 68,133 Deductions Scholarships 26,198 26,198 Supplies 38,086 38,086 Total Deductions 26,198 38,086 64,284 Change in Net Position 2,098 1,751 3,849 Net Position - Beginning 29,260 13,670 42,930 Net Position - Ending $31,358 $15,421 $46,779 See Accompanying Notes 16 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 17 A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES Reporting Entity – The City of Blackfoot, Idaho (the City) provides basic municipal services and operates under a mayor-council form of government. These financial statements are prepared in accordance with generally accepted accounting principles (GAAP) as applied to cities. The governmental accounting standards board (GASB) is responsible for establishing GAAP for state and local governments through its pronouncements (statements and interpretations). The more significant accounting policies established in GAAP and used by the City are discussed below. As required by GAAP, these financial statements present the City and its component unit. Blended component units are entities which are legally separate from the City but which are so intertwined with the City that they are, in substance, the same as the City. Discretely presented component units are entities for which the City is considered to be financially accountable or for which the nature and significance of 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 include the Blackfoot Urban Renewal Agency (BURA) whose board includes City council members. Separate financial statements and note disclosures for the BURA are issued and available from the City. Basic Financial Statements - Government-Wide Statements – The City’s basic financial statements include both government-wide (reporting the City as a whole) and fund financial statements (reporting the City’s major funds). Both government-wide and fund financial statements categorize primary activities as either governmental or business-type. In the government-wide statement of net position, both the governmental and business-type activities columns are presented on a consolidated basis by column, and are reported on a full accrual, economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt and obligations. The government-wide statement of activities reports both the gross and net cost of each of the City’s functions and business-type activities. The functions are also supported by general government revenues as reported in the statement of activities. The statement of activities reduces gross expenses (including depreciation when recorded) by related program revenues and operating and capital grants. Program revenues must be directly associated with the function. Internal activity between funds is eliminated in the government-wide statement of activities. Operating grants include operating-specific and discretionary (either operating or capital) grants while the capital grants column reports capital-specific grants. The net costs (by function or business-type activity) are normally covered by general revenues. The City’s sole activity is providing basic municipal services, and substantially all expenses are directly related to this activity. Accordingly, there is no allocation of indirect costs. The government-wide focus is more on the sustainability of the City as an entity and the change in the City’s net position resulting from the current year’s activities. Fiduciary funds, when present, are not included in the government-wide statements. Basic Financial Statements - Fund Financial Statements – The financial transactions of the City are reported in individual funds in the fund financial statements. Each fund is accounted for by providing a separate set of self-balancing accounts that comprises its assets, deferred outflows of resources, liabilities, deferred inflows of resources, fund equity, revenues and expenditures/expenses. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 18 The emphasis in fund financial statements is on the major funds. Nonmajor funds by category are summarized into a single column. Generally accepted accounting principles set forth minimum criteria (percentage of assets and deferred outflows of resources, liabilities and deferred inflows of resources, revenues or expenditures/expenses of the funds) for the determination of major funds. The focus of the governmental funds' measurement (in the fund statements) is upon determination of financial position and changes in financial position (sources, uses, and balances of financial resources) rather than upon net income. Major governmental funds of the City include: General Fund – The general fund is the City’s primary operating fund. It is used to account for all financial resources except those required to be accounted for in another fund. Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue sources that are legally restricted to expenditures for specified purposes. Major special revenue funds include the street fund, which accounts for maintenance and betterments of the City’s streets, the ambulance fund, which provides support to maintain and operate ambulance services to the City’s residents, and the parks and recreation fund, which accounts for the development and maintenance of public parks and recreational facilities within the City. The focus of proprietary fund measurement is upon determination of operating income, changes in net position, financial position, and cash flows. The generally accepted accounting principles applicable are those similar to businesses in the private sector. Enterprise funds are required to be used to account for operations for which a fee is charged to external users for goods or services and the activity is financed with debt that is solely secured by a pledge of the net revenues. The activities reported in enterprise funds are reported as business-type activities in the government-wide financial statements. Major enterprise funds of the City include: Water, Sewer, and Sanitation Funds – The water, sewer, and sanitation funds account for the revenues earned and expenses incurred in providing water, sewer, and sanitation services. Private Purpose Trust Funds – Private purpose trust funds are used to account for the assets, and related income producing and disbursement activities, for which the City acts as a scholarship trustee. Custodial Funds – Custodial funds are used to account for assets held by the City on behalf of local organizations. Basis of Accounting – Basis of accounting refers to the point at which revenues or expenditures/expenses are recognized in the accounts and reported in the financial statements. It relates to the timing of the measurements made regardless of the measurement focus applied. Both governmental and business-type activities in the government-wide financial statements and proprietary and fiduciary fund financial statements are reported on the full accrual basis of accounting. Revenues are recognized when earned and expenses are recognized when incurred. The governmental funds financial statements are presented on the modified accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual (when they become both measurable and available). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or within thirty days after year end. Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include principal and interest on long-term debt which, if any, are recognized when due and payable. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 19 Cash and Investments – Nearly all the cash and investment balances of the City’s funds are pooled for investment purposes. The individual funds’ portions of the pooled cash and investments are reported in each fund as cash and investments. Interest earned on pooled cash and investments is allocated to the various funds based on each fund’s respective investment balance. Investments are measured using the market approach and include the local government investment pool, reported and measured at amortized cost following the provisions of GASB 79 which provide for consistent measurement of investment value amongst pool participants. Investments also include the diversified bond fund and are stated at fair value using the market approach and Level 2 inputs (inputs other than quoted prices included in Level 1 that are observable for an asset, liability, either directly or indirectly). The fair value of the diversified bond fund is not the same as the value of its shares. For purposes of the statement of cash flows, the City considers all investments (including restricted investments) available for immediate withdrawal or with maturities of three months or less to be cash and cash equivalents (referred to as cash and investments). Receivables – Receivables are reported net of any estimated uncollectible amounts. Inventories – Material supplies on hand at year end are stated at the lower of cost or net realizable value using the first-in, first-out method. Capital Assets and Depreciation – Capital assets purchased or acquired with an original cost of $15,000 or more are reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition value as of the date received. Additions, improvements and other capital outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as incurred. Depreciation over the estimated useful lives of all depreciable assets is recorded using the straight line method. Leases/SBITAs and Amortization – Material long-term leases and subscription-based information technology arrangements (SBITAs) are reported in accordance with the provisions of GASB 87 Leases and GASB 96 SBITAs. When incurred, amortization over the appropriate lease or SBITA term is recorded using the straight-line method. Compensated Absences – The City provides certain compensated absences to its employees. The estimated amount of compensation for future amounts is recorded as a liability in the accompanying financial statements. Compensated absences will be paid by the fund in which the employee works. Pensions – For purposes of measuring the net pension asset/liability and pension revenue (expense), information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (the Base Plan) and Firefighter Retirement Fund Plan (the FRF Plan) and additions to/deductions from the Base Plan’s and the FRF Plan’s fiduciary net position have been determined on the same basis as they are reported by the Base Plan and the FRF Plan. For this purpose, benefit payments (including refunds of employee contributions) are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value. Pension obligations will be paid by the fund in which the employee works. Deferred Outflows/Inflows of Resources – The City’s financial statements may report deferred outflows/inflows of resources. Deferred outflows of resources represent a consumption of net assets that apply to a future period. Deferred inflows of resources represent an acquisition of net assets that apply to a ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 20 future period. Deferred outflows/inflows of resources generally represent amounts that are not available in the current period. Net Position – Net position is assets plus deferred outflows of resources less liabilities less deferred inflows of resources. The net investment in capital assets component of net position consists of the historical cost of capital assets less accumulated depreciation less any outstanding debt that was used to finance those assets plus deferred outflows of resources less deferred inflows of resources related to those assets. Restricted net position consists of assets that are restricted by creditors, grantors, contributors, legislation, and other parties. All other net position not reported as restricted or net investment in capital assets is reported as unrestricted. Fund Balance Classifications – Restrictions of the fund balance indicate portions that are legally or contractually segregated for a specific future use. Nonspendable portions of the fund balance are those amounts that cannot be spent because they are in a nonspendable form or because they are legally or contractually required to be maintained intact. Committed portions represent amounts that can only be used for specific purposes pursuant to formal action (i.e. board approval) of the reporting entity’s governing body. Assigned portions represent amounts that are constrained by the government’s intent to be used for a specific purpose. Remaining fund balances are reported as unassigned. When expenditures are incurred that qualify for either restricted or unrestricted resources, the City first utilizes restricted resources. When expenditures are incurred that qualify for either committed or assigned or unassigned resources, the City first utilizes committed resources then assigned resources before using unassigned resources. Property Taxes – The City is responsible for levying property taxes, but the taxes are collected by the respective county. Taxes are levied by the second Monday in September for each calendar year. Taxes are due in two installments – December 20th and June 20th. A lien is filed on real property three years from the date of delinquency. Contingent Liabilities – Amounts received or receivable from grantor agencies are subject to audit and adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed by the grantor cannot be determined at this time although the City expects such amounts, if any, to be immaterial. Interfund Activity – Interfund activity is reported either as loans, services provided, reimbursements, or transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions are treated as transfers. Use of Estimates – The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. Custodial Credit Risk – The City maintains its cash at insured financial institutions. Periodically, balances may exceed federally insured limits. The City does not have a formal policy concerning custodial credit risk. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 21 Risk Management – The City is exposed to various risks related to its operations. Insurance is utilized to the extent practical to minimize these risks. Subsequent Events – Subsequent events were evaluated through the date of the auditor’s report, which is the date the financial statements were available to be issued. B. CASH AND INVESTMENTS Cash and investments consist of the following at year end: Governmental Proprietary Fiduciary Funds Funds Funds Total Cash - Deposits $13,157,832 $48,449 $13,206,281 Investments - LGIP $7,399,582 5,751,958 13,151,540 Investments - DBF 2,960,737 2,960,737 Total $10,360,319 $18,909,790 $48,449 $29,318,558 Deposits – At year end, the carrying amounts of the City's deposits were $13,206,281 and the bank balances were $12,824,608. Of the bank balances, $3,770,083 was insured and the remainder was uninsured and uncollateralized. Considerations for interest rate risk and credit rate risk relating to investments are shown below. Interest rate risk: Investment Type Less Than 1 1 - 5 Total Local Gov't Invest Pool $13,151,540 $13,151,540 Diversified Bond Fund $2,960,737 2,960,737 Total $13,151,540 $2,960,737 $16,112,277 Schedule (In Years) Investment Maturity Credit rate risk: Investment Type Not Rated Total Local Gov't Invest Pool $13,151,540 $13,151,540 Diversified Bond Fund 2,960,737 2,960,737 Total $16,112,277 $16,112,277 Investment Rating Schedule Investments – State statutes authorize government entities to invest in certain bonds, notes, accounts, investment pools, and other obligations of the state, U.S. Treasury, and U.S. corporations pursuant to Idaho Code 67-1210 and 67-1210A. These statutes are designed to help minimize the custodial risk that deposits may not be returned in the event of the failure of the issuer or other counterparty, interest rate risk resulting from fair value losses arising from rising interest rates, or credit risks that an issuer or other counterparty will not fulfill its obligations. The City's investment policy complies with state statutes. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 22 The local government investment pool and diversified bond fund are managed by the state treasurer's office and are invested in accordance with state statutes and regulations. The local government investment pool is not registered with the SEC and is a short-term investment pool. The state treasurer’s office investment policy for the local government investment pool includes the following three primary objectives in order of priority: safety, liquidity, and yield. Participants have overnight availability to their funds, up to $10 million. Withdrawals of $10 million or more require three business days’ notification. For the diversified bond fund, participants have availability to their funds by providing five business days’ notice, up to $10 million. Withdrawals of $10 million or more may require 25 business days’ notification. More information on the local governmental investment pool including regulatory information, ratings, and risk information can be found at www.sto.idaho.gov. Restricted Cash & Investments – Per bond covenants, the City is required to restrict cash and investments within its sewer fund at a rate of one-tenth of an annual payment per year until one annual bond payment has been accumulated. Management is not aware of any violations of these covenants. In the water fund, the customer deposit account is used to report resources received from users of the utility system, to be returned to the customer when leaving the system provided that all utility bills are paid current. C. CAPITAL ASSETS A summary of capital assets for the year is as follows: Beginning Ending Governmental Activities Balance* Increases Decreases Balance Nondepreciable Capital Assets Land $1,251,390 $1,251,390 Total 1,251,390 $0 $0 1,251,390 Depreciable Capital Assets Buildings 11,526,342 11,526,342 Equipment 7,316,276 513,484 177,719 7,652,041 Improvements 27,739,538 39,257 27,778,795 Subtotal 46,582,156 552,741 177,719 46,957,178 Accumulated Depreciation Buildings 7,417,254 226,728 7,643,982 Equipment 6,063,181 592,740 118,063 6,537,858 Improvements 17,242,697 555,576 17,798,273 Subtotal 30,723,132 1,375,044 118,063 31,980,113 Total 15,859,024 (822,303) 59,656 14,977,065 Net Capital Assets $17,110,414 ($822,303) $59,656 $16,228,455 Depreciation expense of $1,375,044 was charged to the capital assets program. *Beginning capital asset category amounts have been reclassified for consistency purposes. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 23 Beginning Ending Business-Type Activities Balance* Increases Decreases Balance Nondepreciable Capital Assets Land $648,105 $648,105 Total 648,105 $0 $0 648,105 Depreciable Capital Assets Buildings 0 0 Equipment 5,503,691 781,836 6,285,527 Improvements 56,462,413 56,462,413 Subtotal 61,966,104 781,836 0 62,747,940 Accumulated Depreciation Buildings 0 0 Equipment 3,617,561 628,555 54,988 4,191,128 Improvements 22,834,009 1,128,271 23,962,280 Subtotal 26,451,570 1,756,826 54,988 28,153,408 Total 35,514,534 (974,990) (54,988) 34,594,532 Net Capital Assets $36,162,639 ($974,990) ($54,988) $35,242,637 Depreciation expense of $337,235, $1,170,075, and $249,516 was charged to the water, sewer, and sanitation services programs, respectively. *Beginning capital asset category amounts have been reclassified for consistency purposes. D. LONG-TERM LIABILITIES Bonded Debt – At year end, the City’s bonded debt was as follows: Business-Type Activities: Outstanding 2012 - $3,895,791 - water revenue bonds #1001 for capital improvements due in semiannual installments with interest at 1.75% through 2032, secured by future water revenue fees, paid through the water fund $1,722,306 2018 - $3,952,059 - sewer revenue bonds #1501 for capital improvements due in semiannual installments with interest at 2.75% through 2038, secured by future sewer revenue fees, paid through the sewer fund 2,983,117 2024 - $15,034,447 - sewer revenue bonds #1703 for capital improvements due in semiannual installments with interest at 2.75% through 2044, secured by future sewer revenue fees, paid through the sewer fund 14,865,899 Total $19,571,322 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 24 Maturities on the bonds are estimated as follows: Year Ended Principal Interest 9/30/25 $946,422 $515,027 9/30/26 970,579 490,869 9/30/27 995,371 466,077 9/30/28 1,020,812 440,637 9/30/29 1,046,920 414,529 9/30/30-34 5,180,666 1,662,535 9/30/35-39 4,904,777 985,608 9/30/40-44 4,505,775 351,589 Total $19,571,322 $5,326,871 Changes in long-term liabilities are as follows: Beginning Ending Due Within Description Balance* Increases Decreases Balance One Year Governmental Act. Comp. Absences $464,011 $52,312 $516,323 $516,323 Net Pension Liability 3,740,563 1,235,538 4,976,101 - Subtotal 4,204,574 1,287,850 $0 5,492,424 516,323 Business-Type Act. 2012 WR Bond 1001 1,921,271 198,965 1,722,306 202,461 2018 SR Bond 1501 3,155,768 172,651 2,983,117 177,432 2024 SR Bond 1703 14,543,272 491,175 168,548 14,865,899 566,529 Comp. Absences 76,770 11,054 87,824 87,824 Net Pension Liability 639,090 239,045 878,135 - Subtotal 20,336,171 741,274 540,164 20,537,281 1,034,246 Total $24,540,745 $2,029,124 $540,164 $26,029,705 $1,550,569 Interest and related costs during the year amounted to $30,453 and $110,479 and were charged to the water services and sewer services programs, respectively. *Beginning balances were restated as the City updated its method of accounting for leases to conform with GASB 87 Leases. E. PENSION PLAN – BASE PLAN Plan description The City contributes to the Base Plan which is a cost-sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 25 Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension benefits The Base Plan provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members become fully vested in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average 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 whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. Member and employer contributions Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by statute at 60% of the employer rate for general employees and 74% for public safety. As of June 30, 2024 it was 6.71% for general employees and 9.83% for public safety. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.18% for general employees and 13.26% for public safety. The City’s contributions were $907,011 for the year ended September 30, 2024. Pension asset/liabilities, pension revenue (expense), and deferred outflows/inflows of resources related to pensions At September 30, 2024, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, and the total pension liability used to calculate the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of the net pension liability was based on the City’s share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan employers. At June 30, 2024, the City’s proportion was 0.15650339%. For the year ended September 30, 2024, the City recognized pension revenue (expense) of ($1,643,016). At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 26 Deferred Deferred Outflows of Inflows of Resources Resources Differences between expected and actual experience $932,048 Changes in assumptions or other inputs 231,915 Net difference between projected and actual earnings on pension plan investments $106,264 Employer contributions subsequent to the measurement date 226,753 Total $1,390,716 $106,264 $226,753 reported as deferred outflows of resources related to pensions resulting from City contributions made subsequent to the measurement date will be recognized as an adjustment to the pension revenue (expense) 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, 2023 the beginning of the measurement period ended June 30, 2024 is 4.6 and 4.6 for the measurement period June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension revenue (expense) as follows: Year Ended 9/30/25 ($288,941) 9/30/26 (1,091,537) 9/30/27 188,234 9/30/28 134,546 Total ($1,057,698) Actuarial assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases including inflation 3.05% Investment rate of return, net of investment expenses 6.35% Cost-of-living (COLA) adjustments 1.00% ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 27 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 & 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% An experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all economic and demographic assumptions other than mortality. The total pension liability as of June 30, 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. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2024. Target Long-Term Expected Asset Class Allocation Real 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% Domestic Fixed 20% -0.25% TIPS 10% -0.30% Real Estate 8% 3.75% Private Equity 8% 6.00% Discount rate ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 28 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 asset. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for administrative expense. Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate. The following presents the City's proportionate share of the net pension liability calculated using the discount rate of 6.35 percent, as well as what the City's proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.35%) (6.35%) (7.35%) City's proportionate share of the net pension liability $11,124,872 $5,854,236 $1,549,470 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. Impact on the City’s net position Depending on the annual performance of the Base Plan and the various non-financial factors that affect the collective Base Plan net pension liability (as described above), the City may periodically experience a deficit in its net position. This can occur as a result of recording the City’s allocable portion of the net pension liability which is an estimated liability that changes substantially from year to year depending on the factors described above but does not currently require cash outflows. As the net pension liability of the Base Plan is closely monitored by PERSI’s board (who makes changes to the contribution rates and other terms of the Base Plan when deemed necessary), such deficits are not deemed to be of substantial concern. F. PENSION PLAN – FIREFIGHTERS’ RETIREMENT FUND PLAN Plan description The City contributes to the FRF which is a cost-sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that 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 System. The cost to administer the plan is financed through the contributions and investment earnings of the FRF. 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 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 29 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 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 System members with at least ten years of service and three members who are Idaho citizens not members of the System except by reason of having served on the Board. Pension benefits The FRF provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are based on members’ years of service as well as the final average salary. A firefighter must have 5 years of service to be eligible for a lifetime retirement allowance at age 60. Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance is based on Idaho Code Title 72 Chapter 14. The benefit payments for the FRF are calculated using a benefit formula adopted by the Idaho Legislature. The FRF cost of living increase is based on the increase in the statewide average firefighter’s wage. Member and employer contributions Member and employer contributions paid to the 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. Pension asset/liabilities, pension revenue (expense), and deferred outflows/inflows of resources related to pensions At September 30, 2024, the City reported an asset for its proportionate share of the net pension asset. The net pension asset was measured as of June 30, 2024, and the total pension asset used to calculate the net pension asset was determined by an actuarial valuation as of that date. The City’s proportion of the net pension asset was based on the City’s share of contributions in the FRF pension plan relative to the total contributions of all participating FRF employers. At June 30, 2024, the City’s proportion was 2.1118041%. For the year ended September 30, 2024, the City recognized pension revenue (expense) of $240,926. At September 30, 2024, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 30 Deferred Deferred Outflows of Inflows of Resources Resources Net difference between projected and actual earnings on pension plan investments $170,860 Total $170,860 $0 Fund (FRF) Firefighters Retirement Subsequent contributions reported as deferred outflows of resources related to pensions resulting from City contributions made subsequent to the measurement date will be recognized as an adjustment to the pension expense 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, 2023 the beginning of the measurement period ended June 30, 2024 is 1.0 year and 1.0 year for the measurement period June 30, 2024. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension revenue (expense) as follows: Year Ended 9/30/25 $62,005 9/30/26 (286,111) 9/30/27 52,053 9/30/28 1,192 Total ($170,861) 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. 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 the FRF permitted under Section 59-1394, Idaho Code, is 50 years. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 31 The total pension asset in the July 1, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases including inflation 3.05%* Investment rate of return, net of investment expenses 6.35% Cost-of-living (COLA) adjustments *3.05% COLA is assumed for the gross benefit paid to members of the FRF. A 1.00% COLA is assumed for PERSI benefit offsets used to determine the benefits paid by FRF. **There is an additional component of assumed salary grown (on top of the 3.05%) that varies for each individual member based on years of service. Contributing Members, Service Retirement Members, and Beneficiaries Fire & Police ‐ Males Pub‐2010 Safety Tables, increased 21% Fire & Police ‐ Females Pub‐2010 Safety Tables, increased 26% 5% of Fire & 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% An experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all economic and demographic assumptions other than mortality. The total pension asset 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. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2024. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 32 Target Long-Term Expected Asset Class Allocation Real 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% Domestic Fixed 20% -0.25% TIPS 10% -0.30% Real Estate 8% 3.75% Private Equity 8% 6.00% Discount Rate The discount rate used to measure the total pension asset 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 asset. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the City's proportionate share of the net pension asset to changes in the discount rate. The following presents the City's proportionate share of the net pension asset calculated using the discount rate of 6.35 percent, as well as what the City's proportionate share of the net pension asset would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.35%) (6.35%) (7.35%) City's proportionate share of the net pension asset $4,904,960 $5,315,328 $5,674,253 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. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Notes to Financial Statements 33 G. INTERFUND TRANSFERS Interfund transfers during the year consist of the following: Fund Transfer In Transfer Out Purpose General $888,574 $244,971 Reimbursement, Support Street 8,902 74,627 Reimbursement Ambulance 99,029 Reimbursement Parks and Recreation 244,971 Support Nonmajor Governmental 51,296 Reimbursement Water 194,397 Reimbursement Sewer 333,159 Reimbursement Sanitation 144,968 Reimbursement Total $1,142,447 $1,142,447 H. TAX ABATEMENTS Idaho counties are authorized by state statute to transact certain property tax activity with property owners in their respective taxing districts. The counties collect the property taxes, then allocate and remit those collections among the taxing districts within the counties. The counties are authorized to cancel or reduce property taxes due to various reasons, including the circuit breaker program, agricultural and other exemptions, and section 63-602NN exemptions under Idaho code for real property improvements. I. PRIOR PERIOD ADJUSTMENT During the year, the City updated its method of accounting for leases to conform with GASB 87 Leases. The City’s net position was restated by $60,829 to reflect the implementation of this change. ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Budgetary Comparison Schedule - General and Major Special Revenue Funds Year Ended September 30, 2024 Page 1 of 4 Final Budget Variance Actual Positive General Fund Original Final Amounts (Negative) Revenues Taxes, Penalties, & Interest $4,336,967 $4,336,967 $4,328,930 ($8,037) Licenses, Fees, & Charges 366,086 366,086 523,104 157,018 Intergovernmental Revenue 2,778,157 2,778,157 2,745,814 (32,343) Investment Interest 237,374 237,374 1,524,126 1,286,752 Grants & Miscellaneous 497,168 497,168 372,389 (124,779) Total Revenues 8,215,752 8,215,752 9,494,363 1,278,611 Expenditures Current Expenditures General Government 2,736,481 2,736,481 2,120,108 616,373 Public Safety 6,563,041 6,563,041 6,733,257 (170,216) Streets 0 0 0 0 Airport 0 0 0 0 Culture & Recreation 0 0 0 0 Debt Service 0 0 0 0 Capital Outlay 128,804 128,804 128,804 0 Total Expenditures 9,428,326 9,428,326 8,982,169 446,157 * Excess (Deficiency) of Revenues Over Expenditures (1,212,574) (1,212,574) 512,194 1,724,768 Other Financing Sources (Uses) Transfers In 888,574 888,574 888,574 0 Transfers Out 0 0 (244,971) (244,971) * Total Other Financing Sources (Uses) 888,574 888,574 643,603 (244,971) Net Change in Fund Balances (324,000) (324,000) 1,155,797 1,479,797 Fund Balances - Beginning 324,000 324,000 4,853,175 4,529,175 Fund Balances - Ending $0 $0 $6,008,972 $6,008,972 *Total expenditures (over) under appropriations are: $201,186 Budgeted Amounts (GAAP Basis) See Auditor's Report 34 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Budgetary Comparison Schedule - General and Major Special Revenue Funds Year Ended September 30, 2024 Page 2 of 4 Final Budget Variance Actual Positive Street Fund Original Final Amounts (Negative) Revenues Taxes, Penalties, & Interest $555,216 $555,216 $565,786 $10,570 Licenses, Fees, & Charges 123,693 123,693 112,000 (11,693) Intergovernmental Revenue 1,021,451 1,021,451 1,227,268 205,817 Investment Interest 0 0 3,535 3,535 Grants & Miscellaneous 0 0 373,234 373,234 Total Revenues 1,700,360 1,700,360 2,281,823 581,463 Expenditures Current Expenditures General Government 0 0 0 0 Public Safety 0 0 0 0 Streets 1,364,936 1,364,936 1,410,018 (45,082) Airport 0 0 0 0 Culture & Recreation 0 0 0 0 Debt Service 0 0 0 0 Capital Outlay 335,424 335,424 335,424 0 Total Expenditures 1,700,360 1,700,360 1,745,442 (45,082) * Excess (Deficiency) of Revenues Over Expenditures 0 0 536,381 536,381 Other Financing Sources (Uses) Transfers In 0 0 8,902 8,902 Transfers Out 0 0 (74,627) (74,627) * Total Other Financing Sources (Uses) 0 0 (65,725) (65,725) Net Change in Fund Balances 0 0 470,656 470,656 Fund Balances - Beginning 0 0 1,688,965 1,688,965 Fund Balances - Ending $0 $0 $2,159,621 $2,159,621 *Total expenditures (over) under appropriations are: ($119,709) Budgeted Amounts (GAAP Basis) See Auditor's Report 35 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Budgetary Comparison Schedule - General and Major Special Revenue Funds Year Ended September 30, 2024 Page 3 of 4 Final Budget Variance Actual Positive Ambulance Fund Original Final Amounts (Negative) Revenues Taxes, Penalties, & Interest $0 $0 $0 $0 Licenses, Fees, & Charges 785,751 785,751 938,548 152,797 Intergovernmental Revenue 734,269 734,269 817,955 83,686 Investment Interest 0 0 0 0 Grants & Miscellaneous 35,000 35,000 120,954 85,954 Total Revenues 1,555,020 1,555,020 1,877,457 322,437 Expenditures Current Expenditures General Government 0 0 0 0 Public Safety 1,785,565 1,785,565 1,657,706 127,859 Streets 0 0 0 0 Airport 0 0 0 0 Culture & Recreation 0 0 0 0 Debt Service 0 0 0 0 Capital Outlay 0 0 0 0 Total Expenditures 1,785,565 1,785,565 1,657,706 127,859 * Excess (Deficiency) of Revenues Over Expenditures (230,545) (230,545) 219,751 450,296 Other Financing Sources (Uses) Transfers In 0 0 0 0 Transfers Out 0 0 (99,029) (99,029) * Total Other Financing Sources (Uses) 0 0 (99,029) (99,029) Net Change in Fund Balances (230,545) (230,545) 120,722 351,267 Fund Balances - Beginning 230,545 230,545 487,470 256,925 Fund Balances - Ending $0 $0 $608,192 $608,192 *Total expenditures (over) under appropriations are: $28,830 Budgeted Amounts (GAAP Basis) See Auditor's Report 36 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Budgetary Comparison Schedule - General and Major Special Revenue Funds Year Ended September 30, 2024 Page 4 of 4 Final Budget Variance Actual Positive Parks and Recreation Fund Original Final Amounts (Negative) Revenues Taxes, Penalties, & Interest $236,761 $236,761 $241,789 $5,028 Licenses, Fees, & Charges 868,296 868,296 944,010 75,714 Intergovernmental Revenue 20,000 20,000 21,500 1,500 Investment Interest 0 0 1,476 1,476 Grants & Miscellaneous 0 0 147,924 147,924 Total Revenues 1,125,057 1,125,057 1,356,699 231,642 Expenditures Current Expenditures General Government 0 0 0 0 Public Safety 0 0 0 0 Streets 0 0 0 0 Airport 0 0 0 0 Culture & Recreation 1,383,919 1,383,919 1,485,886 (101,967) Debt Service 0 0 0 0 Capital Outlay 69,138 69,138 69,138 0 Total Expenditures 1,453,057 1,453,057 1,555,024 (101,967) * Excess (Deficiency) of Revenues Over Expenditures (328,000) (328,000) (198,325) 129,675 Other Financing Sources (Uses) Transfers In 328,000 328,000 244,971 (83,029) Transfers Out 0 0 0 0 * Total Other Financing Sources (Uses) 328,000 328,000 244,971 (83,029) Net Change in Fund Balances 0 0 46,646 46,646 Fund Balances - Beginning 0 0 (46,646) (46,646) Fund Balances - Ending $0 $0 $0 $0 *Total expenditures (over) under appropriations are: ($101,967) Budgeted Amounts (GAAP Basis) See Auditor's Report 37 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Schedule of Employer's Share of Net Pension Asset and Liability and Schedule of Employer Contributions PERSI - Base Plan Employer's Proportional Share of the Plan Fiduciary Employer's Net Pension Net Position Employer's Proportionate (Asset) Liability as a Percentage Fiscal Year Portion of the Share of the as a Percentage of the Total Ended Net Pension Net Pension Covered of Covered Pension June 30 (Asset) Liability (Asset) Liability Payroll Payroll (Asset) Liability 2015 0.17443720% $3,536,110 $8,235,002 42.94% 91.38% 2016 0.17614100% $3,570,649 $5,984,997 59.66% 87.26% 2017 0.18488700% $2,906,106 $5,742,158 50.61% 90.68% 2018 0.17795390% $2,624,851 $5,724,866 45.85% 91.69% 2019 0.17050690% $1,946,289 $5,790,803 33.61% 93.79% 2020 0.15829910% $3,675,914 $5,637,040 65.21% 88.22% 2021 0.15442745% ($121,964) $5,753,019 -2.12% 100.36% 2022 0.16425180% $6,469,481 $6,477,254 99.88% 83.09% 2023 0.15576316% $6,215,995 $6,622,624 93.86% 83.83% 2024 0.15650339% $5,854,236 $7,669,651 76.33% 85.54% *As of the measurement date of the net pension (asset) liability. Contributions in Relation to Contributions Fiscal Year Actuarially Actuarially Contribution as a Percentage Ended Determined Determined Deficiency Covered of Covered September 30 Contribution Contribution (Excess) Payroll Payroll 2015 $553,089 $553,089 $0 $4,885,945 11.32% 2016 $583,160 $583,160 $0 $5,151,590 11.32% 2017 $650,047 $650,047 $0 $5,742,465 11.32% 2018 $648,117 $648,117 $0 $5,725,415 11.32% 2019 $655,553 $655,553 $0 $5,715,371 11.47% 2020 $673,039 $673,039 $0 $5,636,843 11.94% 2021 $688,105 $688,105 $0 $5,763,023 11.94% 2022 $773,375 $773,375 $0 $6,477,178 11.94% 2023 $790,776 $790,776 $0 $6,730,009 11.75% 2024 $907,011 $907,011 $0 $7,973,723 11.38% Schedule of Employer's Share of Net Pension Asset and Liability* Schedule of Employer Contributions Schedules above intended to show information for 10 years. Information for additional years will be presented as it becomes available. See Auditor's Report 38 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Schedule of Employer's Share of Net Pension Asset and Liability and Schedule of Employer Contributions PERSI - Firefighters' Retirement Fund Plan Employer's Proportional Share of the Plan Fiduciary Employer's Net Pension Net Position Employer's Proportionate (Asset) Liability as a Percentage Fiscal Year Portion of the Share of the as a Percentage of the Total Ended Net Pension Net Pension Covered of Covered Pension June 30 (Asset) Liability (Asset) Liability Payroll Payroll (Asset) Liability 2015 2.16333030% ($1,168,430) $532,557 -219.40% 118.08% 2016 2.20109610% ($1,183,054) $297,302 -397.93% 118.42% 2017 2.37458220% ($1,989,796) $334,515 -594.83% 129.65% 2018 2.33215030% ($2,639,298) $344,921 -765.19% 140.15% 2019 2.22599670% ($3,199,951) $345,369 -926.53% 152.74% 2020 2.11180410% ($3,144,459) $321,331 -978.57% 155.55% 2021 2.11180410% ($5,706,662) $321,331 -1775.95% 211.83% 2022 2.11180410% ($4,335,343) $321,331 -1349.18% 184.72% 2023 2.11180410% ($4,992,363) $321,331 -1553.65% 200.58% 2024 2.11180410% ($5,315,328) $321,331 -1654.16% 207.66% *As of the measurement date of the net pension (asset) liability. Contributions in Relation to Contributions Fiscal Year Actuarially Actuarially Contribution as a Percentage Ended Determined Determined Deficiency Covered of Covered September 30 Contribution Contribution (Excess) Payroll Payroll 2015 $167,383 $167,383 $0 $532,558 31.43% 2016 $75,247 $75,247 $0 $297,301 25.31% 2017 $86,685 $86,685 $0 $342,493 25.31% 2018 $87,301 $87,301 $0 $344,927 25.31% 2019 $87,413 $87,413 $0 $345,369 25.31% 2020 $83,321 $83,321 $0 $321,331 25.93% 2021 $321,331 0.00% 2022 $321,331 0.00% 2023 $321,331 0.00% 2024 $321,331 0.00% *Contributions to the Firefighter's Retirement Fund were no longer required by PERSI effective July 1, 2020. Schedule of Employer's Share of Net Pension Asset and Liability* Schedule of Employer Contributions Schedules above intended to show information for 10 years. Information for additional years will be presented as it becomes available. See Auditor's Report 39 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Combining Balance Sheet - Nonmajor Governmental Funds September 30, 2024 Page 1 of 2 Health Care Airport Cemetery Library Reserve Assets Cash & Investments $558,631 $192,928 $561,353 $403,950 Receivables: Taxes 1,533 5,875 9,145 Intergovernmental Accounts Due From Other Funds Inventory Total Assets $560,164 $198,803 $570,498 $403,950 Liabilities Accounts Payable & Accrued Expenses $17,409 $6,063 $29,890 Due To Other Funds Unearned Grant Revenue Total Liabilities 17,409 6,063 29,890 $0 Deferred Inflows of Resources Unavailable Tax Revenues 1,289 4,920 7,660 Total Deferred Inflows of Resources 1,289 4,920 7,660 0 Fund Balances Restricted - Special Programs 541,466 187,820 532,948 403,950 Restricted - Debt Service Restricted - Capital Projects Unassigned Total Fund Balances 541,466 187,820 532,948 403,950 Total Liabilities and Deferred Inflows of Resources and Fund Balances $560,164 $198,803 $570,498 $403,950 Special Revenue Funds See Auditor's Report 40 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Combining Balance Sheet - Nonmajor Governmental Funds September 30, 2024 Page 2 of 2 Capital Project Capital Improvements Total Assets Cash & Investments $141,364 $1,858,226 Receivables: Taxes 3,562 20,115 Intergovernmental 0 Accounts 0 Due From Other Funds 0 Inventory 0 Total Assets $144,926 $1,878,341 Liabilities Accounts Payable & Accrued Expenses $53,362 Due To Other Funds 0 Unearned Grant Revenue 0 Total Liabilities $0 53,362 Deferred Inflows of Resources Unavailable Tax Revenues 2,985 16,854 Total Deferred Inflows of Resources 2,985 16,854 Fund Balances Restricted - Special Programs 1,666,184 Restricted - Debt Service 0 Restricted - Capital Projects 141,941 141,941 Unassigned 0 Total Fund Balances 141,941 1,808,125 Total Liabilities and Deferred Inflows of Resources and Fund Balances $144,926 $1,878,341 See Auditor's Report 41 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended September 30, 2024 Page 1 of 2 Health Care Airport Cemetery Library Reserve Revenues Taxes, Penalties, & Interest $47,367 $182,681 $284,280 Licenses, Fees, & Charges 42,950 11,275 $67,838 Intergovernmental Revenue 278,821 Investment Interest 247 1,111 1,731 Grants & Miscellaneous 176,417 5,490 13,539 Total Revenues 224,031 232,232 589,646 67,838 Expenditures Current Expenditures General Government 221,733 104,320 Public Safety Streets Airport 87,935 Culture & Recreation 473,516 Debt Service Capital Outlay 19,375 Total Expenditures 107,310 221,733 473,516 104,320 Excess (Deficiency) of Revenues Over Expenditures 116,721 10,499 116,130 (36,482) Other Financing Sources (Uses) Transfers In Transfers Out (21,043) (13,204) (17,049) Total Other Financing Sources (Uses) (21,043) (13,204) (17,049) 0 Net Change in Fund Balances 95,678 (2,705) 99,081 (36,482) Fund Balances - Beginning 445,788 190,525 433,867 440,432 Fund Balances - Ending $541,466 $187,820 $532,948 $403,950 Special Revenue Funds See Auditor's Report 42 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO Combining Statement of Revenues, Expenditures, and Changes in Fund Balances - Nonmajor Governmental Funds Year Ended September 30, 2024 Page 2 of 2 Capital Project Capital Improvements Total Revenues Taxes, Penalties, & Interest $111,331 $625,659 Licenses, Fees, & Charges 122,063 Intergovernmental Revenue 278,821 Investment Interest 675 3,764 Grants & Miscellaneous 195,446 Total Revenues 112,006 1,225,753 Expenditures Current Expenditures General Government 42,356 368,409 Public Safety 0 Streets 0 Airport 87,935 Culture & Recreation 473,516 Debt Service 0 Capital Outlay 19,375 Total Expenditures 42,356 949,235 Excess (Deficiency) of Revenues Over Expenditures 69,650 276,518 Other Financing Sources (Uses) Transfers In 0 Transfers Out (51,296) Total Other Financing Sources (Uses) 0 (51,296) Net Change in Fund Balances 69,650 225,222 Fund Balances - Beginning 72,291 1,582,903 Fund Balances - Ending $141,941 $1,808,125 See Auditor's Report 43 ---PAGE BREAK--- 44 1740 E Fairview Ave #1116, Meridian, ID 83642 ꞏ qcpas.com ꞏ [PHONE REDACTED] 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 Honorable Mayor and City Council City of Blackfoot, 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 Blackfoot, 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’s basic financial statements and have issued our report thereon dated February 11, 2025. Report on Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered the City’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 the City’s internal control. Accordingly, we do not express an opinion on the effectiveness of the City’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 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 over financial reporting was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that have not been identified. Report on Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free of material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements, noncompliance with which could have a direct and material effect on the determination of financial statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The ---PAGE BREAK--- 45 results of our tests disclosed no instances of noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Accordingly, this communication is not suitable for any other purpose. Quest CPAs PLLC Meridian, Idaho February 11, 2025