Document Blackfoot_doc_3370a7cd36

CITY OF BLACKFOOT, IDAHO BASIC FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 2017 ---PAGE BREAK--- ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2017 TABLE OF CONTENTS Page Number FINANCIAL SECTION Independent Auditor’s Opinion 6 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 10 Statement of Activities 12 Fund Financial Statements: Balance Sheet – Governmental Funds 14 Reconciliation of the Balance Sheet of Governmental Funds to the Statement of Net Position 16 Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds 18 Reconciliation of the Statement of Revenues, Expenditures, and Changes in Fund Balances of Governmental Funds to the Statement of Activities 20 Proprietary Funds: Statement of Net Position 21 Statement of Revenues, Expenses and Changes in Net Position 22 Statement of Cash Flows 23 Fiduciary Funds: Statement of Net Position – Clerk’s Trust Fund 24 Notes to Financial Statements 25 3 ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2017 TABLE OF CONTENTS – (CONTINUED) Page Number Required Supplementary Information: Schedule of Employer’s Share of Net Pension Liability 52 Schedule of Employer’s Contributions 52 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – General Fund 53 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Street Fund 56 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Ambulance Fund 57 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Parks and Recreation Fund 58 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Water Capital Fund 60 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Wastewater Capital Fund 61 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Blackfoot Urban Renewal District 62 Other Supplemental Information: Combining Balance Sheet - Non-major Governmental Funds 64 Expenditures, and Changes in Fund Balances - Non-major Governmental Funds 66 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Airport Fund 68 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Cemetery Fund 69 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Library Fund 70 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Capital Improvements Fund 71 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Fire and Ambulance Replacement Fund 72 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Golf Course Capital Fund 73 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Street Capital Fund 74 4 ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2017 TABLE OF CONTENTS – (CONTINUED) Page Number Other Supplemental Information - Continued: Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Sanitation Capital Fund 75 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Parks Capital Fund 76 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Library Capital Fund 77 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Health Care Reserve Fund 78 Single Audit Section: 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 80 Report on Compliance with Requirements Applicable to Each Major Program and Internal Control over Compliance in Accordance With OMB Circular A-133 82 Schedule of Expenditures of Federal Awards 84 Schedule of Findings and Questioned Costs 85 5 ---PAGE BREAK--- Morgan J Hatt CPA PC Certified Public Accountant 1855 Satterfield Drive [EMAIL REDACTED] Phone : (208) 317-6040 Pocatello, Idaho 83201 Fax: (208) 242-3782 Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Independent Auditor's Report Report on the Financial Statements I have audited the accompanying financial statements of the governmental activities, the business-type activities, the Blackfoot Urban Renewal District (a discretely presented component unit), each major fund, and the aggregate remaining fund information of the City of Blackfoot as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility My responsibility is to express opinions on these financial statements based on my audit. I conducted my audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. Those standards require that I plan and perform the audit to obtain reasonable assurance about whether the financial statements are free from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor’s judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal control. Accordingly, I express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. I believe that the audit evidence I have obtained is sufficient and appropriate to provide a basis for my audit opinions. 6 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 Opinion In my opinion, the financial statements referred to above present fairly, in all material respects, the financial position of the governmental activities, the business-type activities, the Blackfoot Urban Renewal District (a discretely presented component unit), each major fund, and the respective changes in financial position, for the year then ended in accordance with accounting principles generally accepted in the United States of America Required Supplementary Information The City has not presented the Management’s Discussion and Analysis that accounting principles generally accepted in the United States has determined is necessary to supplement, although not required to be part of, the basic financial statements. My opinion on the basic financial statements is not affected by this missing information. Accounting principles generally accepted in the United States of America require that the schedules of Net Pension Liability and Employer’s Contributions, and the major fund budgetary comparison information be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, which considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. I 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 my inquiries, the basic financial statements, and other knowledge I obtained during my audit of the basic financial statements. I do not express an opinion or provide any assurance on the information because the limited procedures do not provide me with sufficient evidence to express an opinion or provide any assurance. Other Information My audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the City’s basic financial statements. The combining and individual non- major fund financial statements are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, cost Principles, and Audit Requirements for Federal Awards, and is also not a required part of the basic financial statements. 7 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 3 The combining and individual non-major fund financial statements and the Schedule of Expenditures of Federal Awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States of America. In my opinion, the combining and individual non-major fund financial statements and the Schedule of Expenditures of Federal Awards are fairly stated in all material respects in relation to the basic financial statements as a whole. Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, I have also issued my report dated January 19, 2018, on my consideration of the City’s internal control over financial reporting and on my tests of its compliance with certain provisions of laws, regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of my testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City’s internal control over financial reporting and compliance. Pocatello, Idaho January 19, 2018 Morgan J Hatt CPA PC 8 ---PAGE BREAK--- 9 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF NET POSITION SEPTEMBER 30, 2017 Total Governmental Business-type Primary ASSETS: Activities Activities Government Current Assets: Cash and investments $5,396,697 $4,692,314 $10,089,011 Property taxes receivable 202,796 202,796 Other receivables 807,200 66,042 873,242 Utility accounts receivable, net 592,607 592,607 Golf Inventory 53,141 53,141 Non-current Assets: Land 1,048,240 471,229 1,519,469 Capital assets, net 15,561,180 18,666,781 34,227,961 Total Assets: 23,069,254 24,488,973 47,558,227 DEFERRED OUTFLOWS: Deferred PERSI outflow of resources 262,232 52,190 314,422 LIABILITIES: Current liabilities: Accounts payable 672,767 168,266 841,033 Accrued leave 457,575 74,199 531,774 Customer deposits 79,310 79,310 Lease payable due within one year 9,223 9,223 Note payable EPA due within one year 179,217 179,217 Revenue bonds due within one year 215,000 215,000 Non-current liabilities: 0 Lease payable due beyond one year 48,047 48,047 DEQ Loan WW 1501 3,154,012 3,154,012 Note payable EPA due beyond one year 2,866,022 2,866,022 Revenue bonds due beyond one year 220,000 220,000 City's share of unfunded PERSI liability 1,670,007 332,370 2,002,377 Total Liabilities: 2,857,619 7,288,396 10,146,015 DEFERRED OUTFLOWS: Deferred PERSI inflow of resources 250,511 49,857 300,368 NET POSITION: Net investment in capital assets 16,552,150 12,515,920 29,068,070 Unrestricted 3,671,206 4,686,990 8,358,196 Total Net Position: $20,223,356 $17,202,910 $37,426,266 The accompanying notes are an integral part of these statements. 10 ---PAGE BREAK--- Totals Blackfoot Urban Reporting Renewal Agency Entity $1,149,295 $11,238,306 8,713 211,509 873,242 592,607 53,141 1,519,469 34,227,961 1,158,008 48,716,235 0 314,422 2,215 843,248 531,774 79,310 9,223 179,217 60,000 275,000 0 48,047 3,154,012 2,866,022 680,000 900,000 2,002,377 742,215 10,888,230 0 300,368 29,068,070 415,793 8,773,989 $415,793 $37,842,059 The accompanying notes are an integral part of these statements. 11 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2017 Program Revenues Charges for Grants and Expenses Services Contributions Primary Government: Governmental Activities: General government $1,687,529 $245,777 $150,000 Public safety 5,931,562 2,328,318 58,334 Parks and recreation 1,733,063 848,626 44,762 Library 426,878 238,867 644 Highways and streets 957,222 91,748 Airport 217,610 36,728 642,922 Interest on long-term debt 0 Total Governmental Activities: 10,953,864 3,790,064 896,662 Business-type Activities: Water 1,188,077 1,848,755 Sewer 2,305,111 2,789,796 602,077 Sanitation 923,168 1,231,090 Interest on long-term debt 69,848 Total Business-type Activities: 4,486,204 5,869,641 602,077 Total Primary Government: $15,440,068 $9,659,705 $1,498,739 Component Units: Interest on long-term debt $55,825 Blackfoot Urban Renewal Agency 305,348 $100 $361,173 $100 $0 General Revenues: Property taxes Sales and use tax County road and bridge State of Idaho revenue sharing State of Idaho liquor receipts State highway user collections Investment earnings Sale of assets Admin charges Health deductible charges Total General Revenues and Transfers: Change in net position: Net Position October 1, 2016: Net Position September 30, 2017 The accompanying notes are an integral part of these statements. 12 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Primary Government Blackfoot Governmental Business-type Urban Renewal Activities Activities Total Agency ($1,291,752) ($1,291,752) (3,544,910) (3,544,910) (839,675) (839,675) (187,367) (187,367) (865,474) (865,474) 462,040 462,040 0 0 (6,267,138) (6,267,138) $660,678 660,678 1,086,762 1,086,762 307,922 307,922 (69,848) (69,848) 1,985,514 1,985,514 (4,281,624) ($55,825) (305,248) 3,951,310 3,951,310 626,072 541,221 541,221 4,370 50,160 50,160 427,938 427,938 162,704 162,704 548,214 548,214 163,282 163,282 2,961 2,961 806,267 (806,267) 0 45,916 (45,916) 0 6,699,973 (852,183) 5,847,790 269,369 432,835 1,133,331 1,566,166 269,369 19,790,521 16,069,579 35,860,100 146,424 $20,223,356 $17,202,910 $37,426,266 $415,793 The accompanying notes are an integral part of these statements. 13 ---PAGE BREAK--- CITY OF BLACKFOOT BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 Parks and General Street Ambulance Recreation ASSETS: Fund Fund Fund Fund Cash and investments $4,963 Receivables: Property taxes $160,803 $11,919 11,016 Bingham County 148,090 12,800 499 State of Idaho 118,512 140,028 Other 19,789 Golf clubhouse inventory 53,141 Due from other funds 408,745 Total Assets: $855,939 $164,747 $0 $69,619 LIABILITIES: Accounts payable $121,165 $18,186 $20,605 $60,660 Due to other funds 73,010 416,526 Total Liabilities: 121,165 91,196 437,131 60,660 DEFERRED INFLOW OF RECOURCES: Unavailable revenue - Property taxes 130,508 10,454 8,959 FUND BALANCE: Assigned - Capital Improvements Committed 63,097 0 Unassigned 604,266 (437,131) Total Fund Balance: 604,266 63,097 (437,131) 0 Total Liabilities, Deferred Resources, & Fund Balance: $855,939 $164,747 $0 $69,619 The accompanying notes are an integral part of these statements. 14 ---PAGE BREAK--- Water Wastewater Other Total Blackfoot Capital Capital Governmental Primary Urban Renewal Fund Fund Funds Governmental Agency $2,097,965 $1,197,225 $2,096,544 $5,396,697 $1,149,295 19,058 202,796 8,713 5,843 167,232 258,540 361,639 381,428 53,141 146,366 555,111 $2,097,965 $1,197,225 $2,629,450 $7,014,945 $1,158,008 $452,151 $672,767 $2,215 65,575 555,111 $0 $0 517,726 1,227,878 2,215 15,429 165,350 8,479 2,097,965 1,197,225 1,457,751 4,752,941 704,119 767,216 1,147,314 (65,575) 101,560 2,097,965 1,197,225 2,096,295 5,621,717 1,147,314 $2,097,965 $1,197,225 $2,629,450 $7,014,945 $1,158,008 The accompanying notes are an integral part of these statements. 15 ---PAGE BREAK--- CITY OF BLACKFOOT RECONCILIATION OF THE BALANCFE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2017 Total Blackfoot Primary Urban Renewal Government Agency Total Fund Balance: $5,621,717 $1,147,314 Total net assets reported on the Statement of Net Position is different from the fund balance reported on the Balance Sheet because: Capital assets used in governmental activities are not financial resources and therefore are not reported as assets in the governmental funds. Cost of capital assets: 40,990,725 Depreciation expense to date: (24,381,305) Some of the City's property taxes will be collected after year-end and are not available to pay current period expenditures. They are reported as deferred revenue in the governmental funds. 165,350 8,479 Deferred amounts are not current financial resources/uses. Therefore, they are not reported in the governmental funds. Deferred PERSI outflows: 262,232 Deferred PERSI inflows: (250,511) Long-term liabilities are not due and payable in the current period. Therefore, they are not reported as liabilities in the governmental funds. Accrued leave: (457,575) Equipment leases payable: (57,270) Revenue bonds payable: (740,000) City's share of unfunded PERSI liability: (1,670,007) Change in Net Position: $20,223,356 $415,793 16 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- 17 THIS PAGE INTENTIONALLY LEFT BLANK ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2017 Parks and General Street Ambulance Recreation REVENUE: Fund Fund Fund Fund Property taxes $3,089,797 $306,283 $215,264 Sales and use taxes 436,072 42,587 21,376 Franchise taxes 113,784 90,307 Licenses and fees 68,568 $732,334 776,248 County shared 50,160 564,642 20,000 State of Idaho 590,642 548,214 Blackfoot - Snake River Fire District 833,824 School District Resource Officer 109,850 Grants and contributions 162,569 44,640 24,762 Interest 156,849 2,464 Administrative charges 806,267 Miscellaneous 113,251 1,441 800 1,390 Total Revenue: 6,481,473 1,041,456 1,342,416 1,059,040 EXPENDITURES: Current Operating: General government 1,489,406 Public safety 4,574,079 1,321,643 Parks and recreation 1,678,929 Library Highways and streets 1,565,919 Airport Capital Outlay Debt service - principal Debt service - interest Total Expenditures: 6,063,485 1,565,919 1,321,643 1,678,929 EXCESS REVENUE (EXPENDITURES): 417,988 (524,463) 20,773 (619,889) OTHER FINANCING SOURCES (USES): Operating transfers (to) from other funds (504,289) 619,889 NET CHANGE IN FUND BALANCES: (86,301) (524,463) 20,773 0 FUND BALANCE - BEGINNING: 690,567 587,560 (457,904) 0 FUND BALANCE - ENDING: $604,266 $63,097 ($437,131) $0 The accompanying notes are an integral part of these statements. 18 ---PAGE BREAK--- Water Wastewater Other Total Blackfoot Capital Capital Governmental Primary Urban Renewal Fund Fund Funds Government Agency $365,213 $3,976,557 $624,852 41,186 541,221 204,091 509,130 2,086,280 634,802 1,138,856 833,824 109,850 643,566 875,537 3,969 163,282 4,370 806,267 72,869 189,751 100 $0 $0 1,635,933 11,560,318 629,322 197,683 1,687,089 19,497 5,895,722 33,874 1,712,803 436,218 436,218 1,565,919 806,376 806,376 283,851 60,000 57,825 0 0 1,474,151 12,104,127 421,173 0 0 161,782 (543,809) 208,149 (115,600) 0 0 0 0 46,182 (543,809) 208,149 2,097,965 1,197,225 2,050,113 6,165,526 939,165 $2,097,965 $1,197,225 $2,096,295 $5,621,717 $1,147,314 The accompanying notes are an integral part of these statements. 19 ---PAGE BREAK--- CITY OF BLACKFOOT RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS TO THE STATEMENT OF ACTIVITIES FOR THE YEAR ENDED SEPTEMBER 30, 2017 Total Blackfoot Primary Urban Renewal Government Agency Net Change in Fund Balance -Total Governmental Funds: ($543,809) $208,149 Because some property taxes will not be collected for several months after the City's year-end, they are not considered current resources in the governmental funds. They are, however, considered as revenue in the Statement of Activities. This amount is the current year change in deferred taxes: (25,247) 1,220 Governmental funds report capital outlays as current year expenditures. In the Statement of Activities, the cost of these assets is allocated over their estimated useful lives as depreciation expense. This is the amount of current capital outlay for new equipment: 2,228,925 This is the amount of current year depreciation: (1,103,036) This is the amount of new assets transferred from BURA: Long-term liabilities are not recorded in Governmental funds. This is the amount of current year capital lease payments: This is the amount of current year bond payment payment: 60,000 Liability for personal leave days are not recorded in Governmental funds. This is the increase in leave during the year: (102,882) Revenues and expenses that do not require the use of current financial resources are not reported in the Governmental funds. This is the current net PERSI expense: (21,116) Change in Net Position: $432,835 $269,369 The accompanying notes are an integral part of these statements. 20 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2017 Totals Water Sewer Sanitation (Memorandum ASSETS: Fund Fund Fund Only) Current Assets: Cash and investments $2,180,709 $1,790,540 $721,065 $4,692,314 Utility accounts receivable 197,944 274,734 119,929 592,607 Grants receivable 66,042 66,042 Non-current Assets: Land 234,569 236,660 471,229 Property and equipment - net of depreciation 5,403,689 12,746,050 517,042 18,666,781 Total Assets: 8,016,911 15,114,026 1,358,036 24,488,973 DEFERRED OUTFLOWS: Deferred PERSI outflow of resources 14,250 25,779 12,161 52,190 LIABILITIES: Current liabilities: Accrued leave 27,334 31,006 15,859 74,199 Accounts payable 17,402 145,356 5,508 168,266 Customer deposits 79,310 79,310 Bonds payable 215,000 215,000 Notes payable 179,217 179,217 Non-current liabilities: Bonds payable 220,000 220,000 Notes payable 2,866,022 2,866,022 DEQ loan WW 1501 3,154,012 3,154,012 Fund's share of unfunded PERSI liability 90,751 164,170 77,449 332,370 Total Liabilities: 3,260,036 3,929,544 98,816 7,288,396 DEFERRED INFLOWS: Deferred PERSI inflow of resources 13,613 24,626 11,618 49,857 NET POSITION: Net investment in capital assets 2,593,019 9,393,698 529,203 12,515,920 Unrestricted 2,164,493 1,791,937 730,560 4,686,990 Total Net Position: $4,757,512 $11,185,635 $1,259,763 $17,202,910 The accompanying notes are an integral part of these statements. 21 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2017 Totals Water Sewer Sanitation (Memorandum OPERATING REVENUE: Fund Fund Fund Only) Service fees $1,832,147 $2,780,428 $1,231,090 $5,843,665 Other 16,608 9,368 25,976 Total Revenue: 1,848,755 2,789,796 1,231,090 5,869,641 OPERATING EXPENSES: Salaries 276,258 493,224 240,654 1,010,136 Benefits 232,437 347,207 157,930 737,574 Clothing 3,325 3,178 1,940 8,443 Travel and training 537 4,318 257 5,112 Office supplies 14,661 23,430 2,140 40,231 Maintenance 41,448 93,136 38,536 173,120 Utilities and telephone 188,810 195,514 3,778 388,102 Fuel 10,578 26,012 39,429 76,019 Professional services 51,980 107,844 2,204 162,028 Department supplies and other 53,446 180,151 6,837 240,434 Insurance 18,871 30,460 16,683 66,014 Depreciation 228,513 667,883 99,471 995,867 Administrative services 216,059 413,815 176,393 806,267 Lab & DEQ fees 30,178 19,038 49,216 Lift stations 58,177 58,177 County services 306,706 306,706 Constructional materials 54,261 75,089 15,743 145,093 Total Expenses: 1,421,362 2,738,476 1,108,701 5,268,539 OPERATING INCOME (LOSS): 427,393 51,320 122,389 601,102 NON-OPERATING REVENUES (EXPENSES): Federal and State grants 602,077 602,077 Debt service-interest (55,598) (14,250) (69,848) INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS: 371,795 639,147 122,389 1,133,331 Transfers (to) from other funds 0 0 0 0 CHANGE IN NET POSITION: 371,795 639,147 122,389 1,133,331 NET POSITION - BEGINNING: 4,385,717 10,546,488 1,137,374 16,069,579 NET POSITION - ENDING: $4,757,512 $11,185,635 $1,259,763 $17,202,910 The accompanying notes are an integral part of these statements. 22 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2017 Totals Water Sewer Sanitation (Memorandum Fund Fund Fund Only) CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from City patrons $1,841,275 $2,778,929 $1,228,711 $5,848,915 Payments to suppliers (783,157) (1,531,226) (608,285) (2,922,668) Payments to employees (284,468) (512,333) (246,095) (1,042,896) City administrative charges (216,059) (413,815) (176,393) (806,267) Net Cash Provided by Operating Activities: 557,591 321,555 197,938 1,077,084 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of fixed assets (104,897) (3,043,815) (258,769) (3,407,481) Grants 988,037 988,037 Transfer to capital funds 0 State revolving loan payments (231,719) (231,719) DEQ loan advance 2,285,366 2,285,366 Bond payments (229,250) (229,250) Net Cash Applied to Financing Activities: (336,616) 338 (258,769) (595,047) CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments 0 0 0 0 NET INCREASE (DECREASE) IN CASH 220,975 321,893 (60,831) 482,037 CASH AT BEGINNING OF YEAR: 1,959,734 1,468,647 781,896 4,210,277 CASH AT END OF YEAR: $2,180,709 $1,790,540 $721,065 $4,692,314 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET INCOME: Net income (loss) $371,795 $639,147 $122,389 $1,133,331 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 228,513 667,883 99,471 995,867 Net PERSI plan revenue (42,899) (22,023) (14,645) (79,567) Investment income 0 Debt service interest 55,598 14,250 69,848 Grants (602,077) (602,077) Transfers 0 (Increase) decrease in accounts receivable (6,087) (10,867) (2,379) (19,333) Increase (decrease) in accounts payable (49,329) (364,758) (6,898) (420,985) Net Cash Provided by Operating Activities: $557,591 $321,555 $197,938 $1,077,084 The accompanying notes are an integral part of these statements. 23 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF NET POSITION FIDUCIARY FUNDS - CLERK'S TRUST FUND SEPTEMBER 30, 2017 ASSETS: Cash and investments $79,344 Total Assets: 79,344 LIABILITIES: Customer deposits 3,798 Blackfoot Youth Committee 7,568 Baseball fields 1,662 Clerk's Trust misc (45) Flag donations 56 We The People 500 Music In The Park 406 Mayor's scholarship 28,582 Elections 2,437 Ground water recharge 5,000 Round-up Program (2,943) Blackfoot Animal Shelter 2,649 Braden/Tracen Project 871 Animal Shelter vaccinations 1,280 Animal Shelter adoptions 24,190 Animal Shelter County 2,297 Patriot Park statue donations 20 Friends of the Library 1,016 Total Liabilities: 79,344 NET POSITION: $0 The accompanying notes are an integral part of these statements. 24 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2017 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The City of Blackfoot, Idaho (the “City”) was incorporated on January 16, 1901, under the provision of the State of Idaho. The City operates under a Council-Mayor form of government. The financial statements of the City of Blackfoot have been prepared in conformity with generally accepted accounting principles (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for established governmental accounting and financial reporting principles. The more significant of the City of Blackfoot’s accounting policies are described below. A. FINANCIAL REPORTING ENTITY For financial reporting purposes, management has considered potential component units. The decision to include a potential component unit in the reporting entity is made by applying the criteria set forth in generally accepted accounting principles. The basic criterion for including a potential component unit within the reporting entity is the governing body's responsibility for financial accountability. Financial accountability is defined as the level of accountability that exists if a primary government appoints a voting majority of an organization’s governing board and is either able to impose its will on that organization or there is potential for the organization to provide specific financial benefits to, or impose specific financial burdens on, the primary government. A primary government may also be financially accountable for governmental organizations that are fiscally dependent on it. Discretely Presented Component Unit The Blackfoot Urban Renewal District was organized to make improvements to infrastructure in specific areas of the City. It derives its revenues from the incremental tax increases that all taxing districts forfeit from increase in value of the land and improvements in new construction areas. 25 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 B. BASIS OF ACCOUNTING/MEASUREMENT FOCUS The accounts of the City are organized on the basis of funds, each of which is considered a separate accounting entity. The operations of each fund are accounted for with a separate set of self-balancing accounts that comprise its assets, liabilities, fund balance, revenues, and expenditures, as appropriate. Government resources are allocated to and accounted for in individual funds based upon the purposes for which they are to be spent and the means by which spending activities are controlled. Government-wide Financial Statements The Statement of Net Position and the Statement of Changes in Net Position display information about the City. These statements include the financial activities of the overall government, except for fiduciary activities. Eliminations have been made to minimize the double counting of internal activities. These statements are presented on an “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all of the City’s assets and liabilities are included in the accompanying Statement of Net Position. Under the accrual basis of accounting, revenues are recognized in the period in which they are earned while expenses are recognized when the liability is incurred. Property taxes are recognized as revenue in the year for which they are levied. Program service revenues include charges for services, as well as operating contracts with other units of government, such as the Snake River Fire District, the Rural Library District, and the County Ambulance. Certain eliminations have been made as prescribed by GASB Statement No. 34 in regards to inter-fund activities, payables, and receivables. All internal balances in the Statement of Net Position have been eliminated except those representing balances between the governmental activities and the business-type activities. Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally are followed in both government-wide and proprietary fund financial statements to the extent that those standards do not conflict with or contradict guidance of the Governmental Accounting Standards Board. Governments also have the option of following subsequent private-sector guidance for their business-type activities, subject to this same limitation. The City has elected not to follow subsequent private-sector guidance. Proprietary funds distinguish operating revenues and expenses for non-operating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with ongoing operations. The principal operating revenues of the Water, Sewer, and Sanitation Funds are charges to City residents. 26 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 B. BASIS OF ACCOUNTING/MEASUREMENT FOCUS – (CONTINUED) Operating expenses include the cost of sales and services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as non-operating revenues and expenses. When both restricted and unrestricted resources are available for use, the City’s policy is to use restricted resources first, and then unrestricted resources, as they are needed. Governmental Fund Financial Statements Governmental Fund Financial Statements include a Balance Sheet and a Statement of Revenues, Expenditures and Changes in Fund Balances for all major governmental funds and non-major funds aggregated. An accompanying schedule is presented to reconcile and explain the differences in net assets as presented in these Statements to the net assets presented in the Government-wide Financial Statements. Governmental funds are accounted for on a spending or “current financial resources” measurement focus and on the modified accrual basis of accounting. Accordingly, only current assets and current liabilities are included on the Balance Sheets. The Statement of Revenues, Expenditures, and Changes in Fund Balances present increases and decreases in net current assets. Under the modified accrual basis of accounting, revenues are recognized when they become both measurable and available as net current assets. For this purpose, the City considers revenues to be available if they are collected within 60 days of the end of the current fiscal period. Revenue sources susceptible to accrual include property taxes and inter-governmental revenues. Expenditures are recognized when the related fund liability is incurred. Exceptions to this general rule include accumulated unpaid vacation, sick days, and other employee amounts, which are not accrued. Proprietary Fund Financial Statements Proprietary Funds are used to account for activities similar to those found in the private sector, where the determination of net income is necessary or useful for sound financial administration. Goods or services from such activities can be provided either to outside parties or other departments or agencies within the City. 27 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 B. BASIS OF ACCOUNTING/MEASUREMENT FOCUS – (CONTINUED) Proprietary funds are accounted for using the “economic resources” measurement focus and the accrual basis of accounting. Accordingly, all assets and liabilities are included on the Statement of Net Position. Revenues are recognized when they are earned and expenses are recognized when the liability is incurred. Fiduciary Fund Financial Statements Fiduciary Fund Financial Statements include a Statement of Net Position. The City’s fiduciary funds represent Agency Funds, which are custodial in nature (assets equal liabilities) and do not involve measurement of results of operations. The City reports the following major governmental funds: The General Fund is the City’s primary operating fund. It accounts for all financial activities of the City except those required to be accounted for in another fund. The Street Fund is used to account for the operation of the Street Department. Funding is provided by local property taxes and the City’s share of State highway taxes. The Ambulance fund is used to account for the activities of the City’s paramedics. Funding is provided through user charges and cost sharing with Bingham County. The Parks and Recreation Fund include the City’s golf course, swimming pool, and City parks. Funding is provided by local property taxes and user charges. The Water Capital Fund is used to account for money set aside for future construction projects. The Wastewater Capital Fund is used to account for money set aside for future construction projects. The City reports the following major proprietary funds: The Water Fund accounts for the City’s water production and distribution. The Sewer Fund accounts for the City’s sewer system operation. The Sanitation Fund accounts for the City’s refuse collection and disposal. 28 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 C. BUDGETING Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the general, special revenue, and debt service funds. All annual appropriations lapse at fiscal year-end. Project-length financial plans are adopted for all capital project funds. In July and August of each year, the various department heads submit their budget requests to the Mayor and Council. Budget meetings are then held to determine what funds will be available for expenditure in the new fiscal year. The budget requests are reduced to match the available revenue and a proposed budget is approved by the Mayor and Council. The proposed budget is published in the local paper and taxpayers are invited to attend a public hearing to express their views concerning the proposed budget. After this public meeting, the budget is approved and is legally enacted through the passage of an ordinance. D. ENCUMBRANCES Encumbrances are not liabilities and they are not recorded as expenditures until receipt of material or services. For budgetary purposes, appropriations lapse at year-end and are re- budgeted the following year. The City does not reserve fund balance for outstanding encumbrances at year-end. E. CASH AND INVESTMENTS The City pools idle cash from all funds for the purpose of increasing income through investment activities. The City considers investments with an original maturity of three months or less to be cash equivalent. The City invests idle cash in the Idaho State Treasurer’s local government investment pool. The deposits are stated at cash which approximates market. The State Treasurer combines deposits from all government entities in Idaho who participate in the pool and purchases the following types of investments: Local Certificates of Deposit, Repurchase Agreements, and U.S. Government Securities. The Entities participating in the pool own a percentage of each investment held. This percentage is calculated by dividing the individual entity’s deposits by the total deposits held in the pool. The purpose of this is to: increase overall the rate of return, reduce risk of default, and place each entity under the FDIC and FSLIC limits of $250,000. 29 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 E. CASH AND INVESTMENTS – (CONTINUED) Under Idaho Code Section 67-1210, the City is authorized to invest surplus or idle monies in investments subject to the following standards, guidelines and restrictions: a. City monies shall not be made in any depository of a financial institution in an amount which exceeds ten (10%) of said entity’s capital and surplus. Any investment to be made above Federal Deposit Insurance requires the depository to have a current “Moody’s Bank Credit Report Service” rating of or better. b. No demand deposits or investment in time deposits or certificates of deposit shall be made in financial institutions insured in whole or in part by the Federal Savings and Loan Insurance Corporation or in any State or Federal credit unions’ insurance programs in an amount in excess of the insurance available. Investments allowable under “Idaho Code Section 67-1210 are: a. Bonds, Treasury bills, interest bearing notes, or other obligations of the United States or those for which the faith and credit of the United States are pledged for the payment of principal and interest. b. General obligation or revenue bonds of this State or those for which the faith and credit of this State are pledged for payment of principal and interest. c. General obligation or revenue bonds of any county, city, metropolitan water district, municipal utility district, school district or other taxing district of this State. d. Notes, bonds, debentures, or other similar obligations issued by the Farm Credit System or institutions forming a part thereof under the Farm Credit act of 1971. e. Bonds, notes, or other similar obligations issued by public corporations of the State of Idaho including, but not limited to, the Idaho State Building Authority, the Idaho Housing Authority, and the Idaho Water Resource Board. These investments shall not extend beyond seven days. f. Repurchase agreements covered by any legal investment for the State of Idaho. g. Tax anticipation notes and registered warrants of the State of Idaho. h. Tax anticipation bonds or notes and income and revenue anticipation bonds or notes of taxing districts of the State of Idaho. i. Time deposits and savings accounts in state depositories including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transactions accounts. 30 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 E. CASH AND INVESTMENTS – (CONTINUED) j. Time deposit accounts and savings accounts of Federal savings and loan associations located within the geographical boundaries of the State in amounts not to exceed the insurance provided by the Federal Savings and Loan Insurance Corporation including, but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. k. Revenue bonds of institutions of higher education of the State of Idaho. l. Share, savings and deposit accounts of State and Federal credit unions located within the geographical boundaries of the State in amounts not to exceed the insurance provided by the National Credit Union Share Insurance Fund and/or any other authorized deposit guaranty corporation, including but not limited to, accounts on which interest or dividends are paid and upon which negotiable orders of withdrawal may be drawn, and similar transaction accounts. F. USE OF ESTIMATES The preparation of financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. G. INVENTORY Inventory consists of golf clubhouse merchandise and apparel purchased for resale. Inventory is valued at cost on a first in/first out basis. H. CAPITAL ASSETS Capital assets, which include property, plant, equipment, and infrastructure (roadways), are defined by the City as any asset with an individual cost of more than $5000 and an estimated useful life of at least one year. The City’s assets are capitalized at historical cost or estimated historical cost. Gifts or contributions of assets are recorded at fair market value when received. Depreciation is recorded on the straight-line basis over the estimated useful lives of the assets as follows: Buildings: 20-40 years, Equipment: 5-10 years, and Infrastructure: 40 years. 31 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 H. CAPITAL ASSETS – (CONTINUED) In June 1999, the Governmental Accounting Standards Board (GASB) issued Statement No. 34, which requires the inclusion of infrastructure in local government’s basic financial statements. Infrastructure includes the streets, the water purification and distribution system, the sewer collection and treatment system, and all land and buildings used by the City. The City has elected to use the basic approach as defined by Statement No. 34 for asset reporting. Historical cost records do not exist for all of the City’s assets dating back to 1901. For those assets where actual costs records could not be located, the City estimated costs using standard unit costs appropriate for acquisition date. Accumulated depreciation was computed based on the life of the assets. Book value is computed by deducting the accumulated depreciation from the original cost. I. ACCUMULATED COMPENSATED ABSENCES It is the City’s policy to permit employees to accumulate unused vacation and sick leave, some of which will be paid to employees upon their separation from service. This amount is included as a liability in the Government-wide Statements and on the Proprietary Fund Statements. J. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES In addition to assets, the Statement of Financial Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element represents a consumption of net position that applies to a future period(s) and so it will not be recognized as an outflow of resources (expenditure) until then. The City does have items that qualify for reporting in this category. They are the deferred outflows of resources related to the PERSI pension base plan. In addition to liabilities, the Statement of Financial Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element represents an acquisition of net position that applies to a future period and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of these items, which arises under the government-wide accrual basis of accounting that qualifies for reporting in this category and one item, which arises only under a modified accrual basis of accounting. Accordingly, the item, unavailable revenue, is reported only in the Governmental Funds Balance Sheet. The governmental funds report unavailable revenues from one source; property taxes. This amount is deferred and recognized as an inflow of resources in the period that the amounts become available. 32 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 J. DEFERRED OUTFLOWS/INFLOWS OF RESOURCES – (CONTINUED) The other item (reported in the Government-wide Statements) is an amount related to the pension base plan. See note 19 for details on the pension plan. These amounts are deferred and recognized as an inflow of resources in the period that the amounts become available. K. FUND EQUITY Governmental fund equity is classified as fund balance. Fund balance is further classified as non-spendable, restricted, committed, assigned, or unassigned. Restrictions of the fund balance indicate portions that are legally or contractually segregated for a specific future use. Non-spendable fund balances are required to be maintained intact. Committed portions represent amounts that can only be used for specific purposes pursuant to formal action of the City Council. .Assigned portions represent amounts set aside for specific purposes. Remaining fund balances are reported as unassigned. When both restricted and unrestricted fund balances are available for use, it is the City’s policy to use restricted fund balance first, then unrestricted fund balance. Furthermore, committed fund balances are reduced first, followed by assigned amounts, and then unassigned amounts when expenditures are incurred for purposes for which amounts in any of those restricted fund balance classifications can be used. L. FUND BALANCE FLOW ASSUMPTIONS Sometimes, the City will fund outlays for a particular purpose from both restricted and unrestricted resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental fund financial statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted fund balance to have been depleted before using any of the components of unrestricted fund balance. Further, when the components of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first, followed by assigned fund balance. Unassigned fund balance is applied last. 33 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 M. NET POSITION FLOW ASSUMPTIONS Net position represents the difference between assets and liabilities. Net investment in capital assets, net of related debt consists of capital assets, net of accumulated depreciation, reduced by the outstanding balances of any borrowings used for the acquisition, construction or improvement of those assets. Net position is reported as restricted when there are limitations imposed on their use either through the enabling legislation adopted by the City or through external restrictions imposed by creditors, grantors, laws or regulations, or other governments. Sometimes, the City will fund outlays for a particular purpose from both restricted (e.g. restricted bond or grant proceeds) and unrestricted resources. In order to calculate the amounts to report as restricted – net position and unrestricted – net position in the Government-wide and Proprietary Fund Financial Statements, a flow assumption must be made about the order in which the resources are considered to be applied. It is the City’s policy to consider restricted – net position to have been depleted before unrestricted – net position is applied. Pensions – For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from the Base Plan’s fiduciary net position have been determined on the same basis as they are reported by the Base 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. 2. PROPERTY TAX The City’s property taxes, levied by the second Monday of September on assessed valuation as of June 30, are payable in two equal installments for real property due December 20, and June 20. Personal taxes are payable on December 20. Assessed valuations are established by the County Assessor’s office except for utility property which is established by the State and is currently at 100% of market value. Delinquent payments bear simple interest of 1% per month plus a 2% penalty. Due to the small amount of taxes not collected no adjustment is made for delinquent taxes. Uncollected property taxes are recorded as receivable at year-end, with deferred revenue representing that portion which will not be collected within 60 days after year-end. 34 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) SEPTEMBER 30, 2017 3. CASH AND INVESTMENTS Interest rate risk is the risk that changes in market interest rates will adversely impact the fair value of an investment. Investments that are fixed for longer periods are likely to experience greater variability in their fair values due to changes in interest rates. The City manages its exposure to declines in fair value by limiting the weighted average of its investment portfolio. Custodial risk for deposits is the risk that, in the event of the failure of a depository financial institution, the City would not be able to recover its deposits. The City does not have an investment policy for custodial risk. Credit risk is the risk that an insurer of debt securities or another counterparty to an investment will not fulfill its obligation. The City’s investment policy requires investments to be in conformity with Idaho Statue Title 50, Chapter 10, Section 13. Concentration of credit risk occurs when investments are concentrated in one issuer. The City has no investment policy limiting the amount it may invest in any one issuer. At September 30, 2017, 68% of the City’s investments were in the State of Idaho Local Governments Investment Pool & Diversified Bond Fund. The City invests in the LGIP through the Idaho State Treasure. The State Treasurer provides oversight for investments by or through any department or institute of the State of Idaho. LGIP invests in: government agency notes, commercial paper, corporate bonds, money markets, U.S. Treasury notes, Idaho repurchase agreements, & purchased accrued interest. All investments for the LGIP are collateralized. LGIP investments are carried at cost, which is not materially different than fair value. These investments are subject to risk from market & interest rate fluctuations. The weighted average maturity of LGIP investments is 153 days at September 30, 2017. The City also invests in the Diversified Bond Fund (DBF) through the Idaho State Treasurer. The DBF invests in: corporate securities, mortgage-backed securities, asset- backed securities, commercial mortgage-backed securities, U.S. Government agency securities, U.S. Treasury securities, money market funds, and purchased accrued interest. DBF investments are carried at fair value as determined by the Idaho State Treasurer’s office. 35 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 4. RECEIVABLES The following is a detail of accounts receivable: General Street Park Non- major Fund Fund Fund Funds Total Bingham County: Property tax penalty $6,892 $699 $481 $815 $8,887 Ag exemption 261 26 18 30 335 Sales tax 129,750 11,509 4,998 146,257 Motor vehicle fine 11,187 11,187 Road & bridge tax 566 566 148,090 12,800 499 5,843 167,232 State of Idaho: Revenue sharing 118,512 118,512 Highway user tax 140,028 140,028 118,512 140,028 0 0 258,540 Other Receivables: Groveland Water & Sewer District 3,572 3,572 Federal grants 9,750 Accrued interest on investments 6,467 6,467 19,789 0 0 0 10,039 Total Receivables: $286,391 $152,828 $499 $5,843 $435,811 5. CAPITAL ASSETS In accordance with GASB Statement No. 34, the City has reported all capital assets including infrastructure in the Government-wide Statement of Net Position. The City has maintained a record of fixed assets since 1993. During fiscal year 2000, the infrastructure assets were added to the equipment inventory records. Original estimated costs were developed in one of three ways: 1) Actual historical cost records; 2) Estimated historical costs where actual cost records were not available; and 3) for streets, curbs, and gutters, the City used present construction cost indexed by inflation factors provided by the Idaho Department of Transportation. Accumulated depreciation was computed on a straight- line basis using appropriate life expectancies. 36 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 5. CAPITAL ASSETS – (CONTINUED) Capital assets of the City for the year ended September 30, 2017 are as follows: Assets Accumulated Depreciation Balance Balance Balance Balance Governmental Activities: 10/1/2016 Change 9/30/2017 10/1/2016 Change 9/30/2017 Land $1,048,240 $1,048,240 Buildings 7,490,185 $829,064 8,319,249 $5,231,466 $277,055 $5,508,521 Infrastructure 23,630,284 1,020,589 24,650,873 13,114,473 521,423 13,635,896 Vehicles & rolling stock 4,366,899 200,950 4,567,849 3,666,386 190,224 3,856,610 Furniture & equipment 2,185,417 219,097 2,404,514 1,282,439 97,839 1,380,278 $38,721,025 $862,506 $40,990,725 $23,294,764 $1,086,541 $24,381,305 Business - type Activities Land $471,229 $471,229 Distributions System 29,620,090 $3,001,854 32,621,944 $14,372,895 $798,351 $15,171,246 Vehicles & rolling stock 2,475,508 273,319 2,748,827 1,934,212 144,051 2,078,263 Furniture & equipment 1,180,098 132,307 1,312,405 713,419 53,465 766,884 $33,746,925 $3,407,480 $37,154,405 $17,020,526 $995,867 $18,016,393 For the fiscal year ended September 30, 2017, depreciation expense on capital assets was charged to the governmental functions in the City-wide Statements as follows: General government $39,399 Public safety 169,049 Street 558,809 Airport 175,036 Library 2,094 Parks 158,649 $1,103,036 37 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 6. ACCOUNTS PAYABLE Accounts payable consists of the following: Parks and Other General Street Ambulance Recreation Non-major Fund Fund Fund Fund Funds Total Vendors payable $111,885 $17,101 $16,992 $39,334 $451,125 $636,437 Wages payable 12,013 1,085 3,613 2,360 1,026 20,097 Sales tax payable 2,412 2,412 Customer deposits 20,674 20,674 Withholding 17,684 17,684 Golf tournament credits 18,966 18,966 Work Comp (43,503) (43,503) $121,165 $18,186 $20,605 $60,660 $452,151 $672,767 Water Sewer Sanitation Fund Fund Fund Total Vendors payable $16,372 $143,739 $4,596 $164,707 Wages payable 1,030 1,617 912 3,559 $17,402 $145,356 $5,508 $168,266 7. RISK MANAGEMENT The City is exposed to various risks of loss related to torts, theft of or damage to and destruction of assets, errors and omissions, and natural disasters. Significant losses are covered by commercial insurance. 8. INTERFUND RECEIVABLES AND PAYABLES Due to and due from other funds represent loans from one City fund to another to cover temporary cash shortages. Due From Due To General Fund $408,745 Street Capital Fund 146,366 Street fund $73,010 Ambulance Fund 416,526 Fire and Ambulance Replacement Fund 65,575 38 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 9. CAPITAL LEASES During 2017, the City entered into a lease agreement with Zion’s Bank to finance a golf course mower. It is being repaid over 3 years with interest at 2.74%. As of September 30, 2017, the annual requirements to amortize the debt including interest are as follows: Payment 2.74% Total Debt Date Amount Interest Principal Service $57,269.52 Oct 2017 $10,007.79 $784.59 $9,223.20 48,046.32 Apr 2018 10,007.79 658.23 9,349.56 38,696.76 Oct 2018 10,007.79 530.15 9,477.64 29,219.12 Apr 2019 10,007.79 400.30 9,607.49 19,611.63 Oct 2019 10,007.79 268.68 9,739.11 9,872.52 Apr 2020 10,007.77 135.25 9,872.52 0.00 $60,046.72 $2,777.20 $57,269.52 10. SEWER REFUNDING BONDS During 2012, the City of Blackfoot issued Sewer Revenue Refunding Bonds. Bond proceeds were used to pay off the 1993 DEQ loans and the 2000 COPS debt. These bonds are payable from pledged sewer revenues of the City. The bonds are not payable from any other revenues or assets of the City. The annual requirements to amortize the debt including interest are as follows: Refunding Series 2012 Principal Interest Interest Total Debt Date Amount Rate Amount Service 3/1/2018 $4,350 $4,350 9/1/2018 $215,000 2.00% 4,350 219,350 3/1/2019 2,200 2,200 9/1/2019 220,000 2.00% 2,200 222,200 $435,000 $13,100 $448,100 11. DEQ WASTE WATER LOAN # WW1501 During 2015, the City began an estimated $4,300,000 dollar sewer system upgrade. The project is funded with an Idaho Community Development Block grant of $500,000 and a DEQ loan of $3,800,000. As of September 30, 2017, $3,154,012 has been advanced by DEQ. 39 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 12. DEQ REVOLVING LOAN During 2012, the City completed a water facilities upgrade. The project will be funded by a loan from the US Department of Environmental Quality Idaho Revolving Loan Fund. As of September 30, 2017, the annual requirements to amortize the debt including interest are as follows: DEQ Loan Principal Interest Interest Total Debt Date Amount Rate Amount Service 3/11/2018 $89,432.86 1.75% $26,426.83 $115,859.69 9/11/2018 89,783.81 1.75% 26,075.88 115,859.69 3/11/2019 90,988.11 1.75% 24,871.58 115,859.69 9/11/2019 91,378.57 1.75% 24,481.12 115,859.69 3/11/2020 92,442.04 1.75% 23,417.65 115,859.69 9/11/2020 93,000.22 1.75% 22,859.47 115,859.69 3/11/2021 94,179.99 1.75% 21,679.70 115,859.69 9/11/2021 94,651.51 1.75% 21,208.18 115,859.69 3/11/2022 95,818.69 1.75% 20,041.00 115,859.69 9/11/2022 96,331.82 1.75% 19,527.87 115,859.69 3/11/2023 97,486.18 1.75% 18,373.51 115,859.69 9/11/2023 98,041.67 1.75% 17,818.02 115,859.69 3/11/2024 99,090.85 1.75% 16,768.84 115,859.69 9/11/2024 99,780.75 1.75% 16,078.94 115,859.69 3/11/2025 100,908.81 1.75% 14,950.88 115,859.69 9/11/2025 101,551.22 1.75% 14,308.47 115,859.69 3/11/2026 102,665.78 1.75% 13,193.91 115,859.69 9/11/2026 103,352.80 1.75% 12,506.89 115,859.69 3/11/2027 104,453.63 1.75% 11,406.06 115,859.69 9/11/2027 105,186.06 1.75% 10,673.63 115,859.69 3/11/2028 106,219.93 1.75% 9,639.76 115,859.69 9/11/2028 107,051.06 1.75% 8,808.63 115,859.69 3/11/2029 108,123.68 1.75% 7,736.01 115,859.69 9/11/2029 108,949.32 1.75% 6,910.37 115,859.69 3/11/2030 110,007.46 1.75% 5,852.23 115,859.69 9/11/2030 110,880.93 1.75% 4,978.76 115,859.69 3/11/2031 111,924.34 1.75% 3,935.35 115,859.69 9/11/2031 112,846.50 1.75% 3,013.19 115,859.69 3/11/2032 113,863.96 1.75% 1,995.73 115,859.69 9/11/2032 114,846.27 1.75% 1,013.16 115,859.69 $3,045,238.82 $430,551.62 $3,475,790.70 40 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 13. BLACKFOOT URBAN RENEWAL TAX INCREMENT BONDS During fiscal year 2006, BURA sold $1,100,000 in tax increment bonds to fund construction costs associated with the Riverview Technology Park. These bonds will be repaid from future property tax revenues. The annual requirements to amortize this debt including interest are as follows: Series 2006 Principal Interest Interest Total Debt Date Amount Rate Amount Service March 1, 2018 $60,000.00 7.250% $26,825.00 $86,825.00 September 1, 2018 24,650.00 24,650.00 March 1, 2019 65,000.00 7.250% 24,650.00 89,650.00 September 1, 2019 22,293.75 22,293.75 March 1, 2020 70,000.00 7.250% 22,293.75 92,293.75 September 1, 2020 19,756.25 19,756.25 March 1, 2021 75,000.00 7.250% 19,756.25 94,756.25 September 1, 2021 17,037.50 17,037.50 March 1, 2022 80,000.00 7.250% 17,037.50 97,037.50 September 1, 2022 14,137.50 14,137.50 March 1, 2023 85,000.00 7.250% 14,137.50 99,137.50 September 1, 2023 11,056.25 11,056.25 March 1, 2024 95,000.00 7.250% 11,056.25 106,056.25 September 1, 2024 7,612.50 7,612.50 March 1, 2025 100,000.00 7.250% 7,612.50 107,612.50 September 1, 2025 3,987.50 3,987.50 March 1, 2026 110,000.00 7.250% 3,987.50 113,987.50 $740,000.00 $267,887.50 $1,007,887.50 14. LEGAL DEBT MARGIN The City is subject to a statutory limitation by the State of Idaho for indebtedness payable principally from property taxes. The limit is 2% of market value per the year’s tax roll. The City’s outstanding general obligation debt is under the legal limit. 41 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 15. LONG-TERM DEBT The following is a summary of the City’s long-term debt transactions for the year ended September 30, 2017: Balance Incurred Satisfied Balance Amounts Due 10/1/2016 or Issued or Matured 9/30/2017 Within One Year Governmental Activities: Compensated absences $354,693 $102,882 $457,575 Lease purchase contracts 0 57,270 57,270 $18,573 $354,693 $160,152 $0 $514,845 $18,573 Business-type Activities: State of Idaho revolving loan $3,221,360 ($176,121) $3,045,239 $179,217 DEQ WWTP loan $868,646 $2,285,366 3,154,012 Compensated absences 70,642 3,557 74,199 Refunding Series 2012 650,000 (215,000) 435,000 215,000 $4,810,648 $2,288,923 ($391,121) $6,708,450 $394,217 Blackfoot Urban Renewal District: Tax Increment Bonds $800,000 ($60,000) $740,000 $60,000 $800,000 $0 ($60,000) $740,000 $60,000 16. TRANSFERS BETWEEN FUNDS Administrative Charges: To From General Fund $806,267 Water Fund $216,059 Sewer Fund 413,815 Sanitation Fund 176,393 Deficit Transfers: Parks and Recreation Fund 604,289 General Fund 604,289 Capital Project Reserves: General Fund 100,000 Capital Improvement Fund 100,000 Park Fund 15,600 Park Capital Improvement Fund 15,600 42 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 17. CONTINGENT LIABILITIES To save on health insurance costs, the City has purchased a policy with large individual deductibles. Rather than pass that cost to the employees, the City has agreed to pay up to $1,000 for individuals and $2,000 for families. The City’s maximum risk at any time is approximately $170,000. The City has set up a Health Care Reserve Fund to account for this activity. The City has chosen to participate in the Idaho Independent Inter-governmental Authority Insurance, which is a self-funded insurance policy that Idaho municipalities are eligible to participate in. If in the future there are a high number of claims which depletes the reserve, the City could possibly be required to re-fund this reserve. This potential additional expense has not been determined at this time, but based upon past experience, there is sufficient money in the Health Care Reserve Fund to meet the City’s current needs. Amounts received or receivable from grantor agencies are subject to audit and adjustment by those 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 cannot be determined at this time. The City expects such amounts, if any, to be immaterial. 18. EXCESS OF EXPENDITURES OVER APPROPRIATIONS The Parks Capital Fund exceed budget by $33,874. The Health Care Reserve Fund exceeded budget by $15,556. 43 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM Plan Description The City of Blackfoot 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) 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. 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. 44 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM - (CONTINUED) Member and Employer Contributions Member and employer contributions paid to the Base Plan are set by statute and 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 as 60% of employer rate for general employees and 72% for police and firefighters. As of June 30, 2017, it was 6.79% for general employees and 8.36% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.32% general employees and 11.66% for police & firefighters. The City’s contributions were $447,898 for the year ended June 30, 2017. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At September 30, 2017, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2017, 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 participation PERSI Base Plan employers. At June 30, 2017, the City’s proportion was .1273916 percent. 45 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM - (CONTINUED) For the year ended September 30, 2017, the City recognized pension expense of $267,181. At September 30, 2017, the City reported deferred outflows of resources related to pension from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Differences between expected and actual experience $1,384,105 $748,085 Changes in assumptions or other inputs (18,460) 0 Net difference between projected and actual earnings on pension plan investments (1,214,964) (447,717) Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions 0 0 City contributions subsequent to the measurement date 163,740 0 Total $314,421 $300,368 $163,740 reported as deferred outflows of resources related to pensions resulting from employer contributions subsequent to the measurement date, will be recognized as a reduction of the net pension liability in the year ending September 30, 2017. 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, 2016 the beginning of the measurement period ended June 30, 2017 is 4.9 and 5.5 for the measurement period June 30, 2016. 46 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM - (CONTINUED) Other amounts, reported as deferred outflows of resources and deferred inflows of resources related to pensions, will be recognized in pension expense (revenue) as follows: Year ended June 30: 2018 $ (108,856) 2019 $ 188,124 2020 $ 53,379 2021 $ (118,593) 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, 2017 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 3.25% Salary increases 4.25-10.00% Salary inflation 3.75% Investment rate of return 7.10%, net of investment expenses Cost-of-living adjustments 1% Mortality rates were based on the RP-2000 combined table for healthy males or females as appropriate with the following offsets:  Set back 3 years for teachers  No offset for male fire and police  Forward one year for female fire and police  Set back one year for all general employees and all beneficiaries 47 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM - (CONTINUED) An experience study was performed for the period July 1, 2007 through June 30, 2013 which reviewed all economic and demographic assumptions other than mortality. Mortality and all economic assumptions were studied in 2014 for the period from July 1, 2009 through June 30, 2013. The Total Pension Liability as of June 30, 2017 is based on the results of an actuarial valuation date of July 1, 2017. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers, and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of January 1, 2017. 48 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM - (CONTINUED) Capital Market Assumptions Expected Expected Strategic Strategic Asset Class Return Risk Normal Ranges Equities 70.00% 66% - 77% Domestic Equity 9.15% 19.00% 55.00% 50% - 65% International 9.25% 20.20% 15.00% 10% - 20% Fixed Income 3.05% 3.75% 30.00% 23% - 33% Cash 2.25% 90.00% 0.00% 0% - 5% Expected Expected Expected Real Expected Asset Class Return Inflation Return Risk Actuary 7.00% 3.25% 3.75% N/A Portfolio 6.58% 2.25% 4.33% 12.67% * Expected arithmetic return net of fees Actuarial Assumptions Assumed Inflation - Mean 3.25% Assumed Inflation - Standard Deviation 2.00% Portfolio Arithmetic Mean Return 8.42% Portfolio Long-term Expected Geometric Rate of Return 7.50% Assumed Investment Expenses 0.40% Long-term Expected Geometric Rate of Return, Net of Investment Expensed 7.10% 49 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 19. PUBLIC EMPLOYEES RETIREMENT SYSTEM - (CONTINUED) Discount Rate The discount rate used to measure the total pension liability was 7.10%. 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 plan’s net position was projected to be available to make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. Sensitivity of the Employer’s Proportionate Share of the Net Pension Liability to Changes in the Discount Rate. The following presents the employer’s proportionate share of the net pension liability calculated using the discount rate of 7.10 percent, as well as what the employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (6.10 percent) or 1 percentage point higher (8.10 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (6.10%) (7.10%) (8.10%) Employer's proportionate share of the net pension liability (asset) $4,653,936 $2,002,377 ($201,139) 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.gov. 50 ---PAGE BREAK--- Required Supplementary Information 51 ---PAGE BREAK--- CITY OF INKOM, IDAHO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2017 Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years * 2017 2016 2015 Employer’s portion of the net pension liability 0.127392% 0.123140% 0.123492% Employer's proportionate share of the net pension liability $2,002,377 $2,496,227 $1,626,186 Employer's covered employee payroll $5,506,167 $5,166,140 $5,027,213 Employer's proportional share of the net pension liability as a % of its covered employee payroll 36.37% 48.32% 32.35% Plan fiduciary net position as a % of the total pension liability 90.68% 87.26% 91.38% * GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. Data reported is measured as of June 30, 2017 Schedule of Employer Contributions PERSI - Base Plan Last 10 -Fiscal years* 2017 2016 2015 Statutorily required contribution $429,580 $366,047 $403,944 Contributions in relation to the statutorily required contribution $453,982 $413,269 $396,706 Contribution (deficiency) excess $24,402 $47,221 ($7,238) Employer's covered employee payroll $5,506,167 $5,166,140 $5,027,213 Contributions as a % of covered employee payroll 7.80% 7.09% 8.04% * GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the City will present information for those years for which information is available. Data reported is measured as of June 30, 2017 52 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance & Final Favorable Budget Actual (Unfavorable) REVENUE: Taxes: Property taxes $3,055,183 $3,089,797 $34,614 Sales and use taxes 387,950 436,072 48,122 Franchise taxes 100,000 113,784 13,784 Subtotal Taxes: 3,543,133 3,639,653 96,520 Licenses and Permits: Business licenses 34,650 22,310 (12,340) Building permits 50,000 46,257 (3,743) Dog and bicycle licenses 1,520 1 (1,519) Subtotal Licenses and Permits: 86,170 68,568 (17,602) Inter-governmental: Liquor apportionment 152,369 162,704 10,335 State revenue sharing 426,699 427,938 1,239 Blackfoot - Snake River Fire District 833,824 833,824 0 School resource officer 164,775 109,850 (54,925) State and Federal grants 4,000 162,569 158,569 Subtotal Intergovernmental: 1,581,667 1,696,885 115,218 Miscellaneous: Administrative charges 806,267 806,267 0 Fines and forfeitures 75,000 86,499 11,499 Interest 90,000 156,849 66,849 Other 11,500 26,752 15,252 Subtotal Miscellaneous: 982,767 1,076,367 93,600 Total Revenue: 6,193,737 6,481,473 287,736 EXPENDITURES: Administrative: Salaries 323,563 301,028 22,535 Benefits 291,464 279,237 12,227 Travel and meeting 19,000 15,927 3,073 Office supplies & expense 155,255 140,331 14,924 The accompanying notes are an integral part of these statements. 53 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - (CONTINUED) GENERAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance EXPENDITURES: and Final Favorable Administrative - Continued: Budget Actual (Unfavorable) Maintenance $21,800 $33,527 ($11,727) Utilities and telephone 14,660 16,470 (1,810) Professional services 149,125 147,126 1,999 Department supplies & other 24,200 182,523 (158,323) Insurance 9,134 9,125 9 Contingency 50,000 49,621 379 Subtotal Administrative: 1,058,201 1,174,915 (116,714) Police: Salaries 1,530,666 1,428,179 102,487 Benefits 779,126 734,120 45,006 Clothing allowance 20,000 13,698 6,302 Travel and training 28,000 25,737 2,263 Office supplies 36,100 26,341 9,759 Maintenance 45,000 41,951 3,049 Utilities and telephone 14,200 10,254 3,946 Fuel 60,000 44,288 15,712 Professional services 2,500 1,220 1,280 Department supplies & other 62,000 76,254 (14,254) Insurance 28,122 28,122 0 Bingham County 282,212 211,236 70,976 Capital outlay 96,600 94,983 1,617 Subtotal Police: 2,984,526 2,736,383 248,143 Fire: Salaries 1,051,320 1,018,304 33,016 Benefits 607,179 562,601 44,578 Protective clothing 5,000 5,580 (580) Travel and training 11,500 4,121 7,379 Office supplies 16,960 10,633 6,327 Maintenance 27,600 30,771 (3,171) The accompanying notes are an integral part of these statements. 54 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - (CONTINUED) GENERAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance EXPENDITURES: and Final Favorable Fire - Continued: Budget Actual (Unfavorable) Utilities and telephone $35,200 $30,813 $4,387 Fuel 8,000 8,386 (386) Professional services 106,500 74,891 31,609 Department supplies & other 21,000 42,773 (21,773) Insurance 15,347 15,347 0 Capital outlay 46,827 33,476 13,351 Subtotal Fire: 1,952,433 1,837,696 114,737 Building and zoning: Salaries 167,788 148,128 19,660 Benefits 96,789 107,338 (10,549) Travel and training 4,000 4,468 (468) Office supplies 18,635 7,434 11,201 Maintenance 1,500 1,395 105 Utilities and telephone 2,500 3,624 (1,124) Fuel 1,500 810 690 Professional services 10,000 6,670 3,330 Department supplies & other 32,937 (32,937) Insurance 1,687 1,687 0 Subtotal Building and Zoning: 304,399 314,491 (10,092) Total Expenditure:s 6,299,559 6,063,485 236,074 EXCESS REVENUE (EXPENDITURES): (105,822) 417,988 523,810 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 105,821 (504,289) (610,110) EXCESS REVENUE/SOURCES (EXPENDITURES/USES): (86,301) ($86,300) FUND BALANCE - BEGINNING: 690,567 FUND BALANCE - ENDING: $604,266 The accompanying notes are an integral part of these statements. 55 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL STREET FUND YEAR ENDED SEPTEMBER 30, 2017 Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUE: Property taxes $314,951 $314,951 $306,283 ($8,668) Highway users' tax 516,851 516,851 548,214 31,363 State sales tax 80,838 80,838 42,587 (38,251) County road and street 45,000 45,000 50,160 5,160 Franchise fees 85,000 85,000 90,307 5,307 Miscellaneous 1,441 1,441 Interest on investments 3,700 3,700 2,464 (1,236) Total Revenue: 1,046,340 1,046,340 1,041,456 (4,884) EXPENDITURES: Salaries 291,395 291,395 274,771 16,624 Benefits 264,292 264,292 227,300 36,992 Clothing 5,600 5,600 1,532 4,068 Travel and training 4,000 4,000 180 3,820 Office supplies 3,600 3,600 3,767 (167) Maintenance 48,000 48,000 43,960 4,040 Utilities and telephone 172,500 172,500 149,191 23,309 Fuel 40,000 40,000 29,812 10,188 Professional services 10,500 10,500 35,914 (25,414) Department supplies and other 118,750 118,750 146,540 (27,790) Insurance 10,286 10,286 10,286 0 Grant expense 0 140,000 145,335 (5,335) Construction materials 194,050 676,770 464,334 212,436 Capital outlay 45,000 45,000 32,997 12,003 Total Expenditures: 1,207,973 1,830,693 1,565,919 264,774 EXCESS REVENUE (EXPENDITURES): (161,633) (784,353) (524,463) 259,890 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 161,633 161,633 0 (161,633) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 ($622,720) (524,463) $98,257 FUND BALANCE - BEGINNING: 587,560 FUND BALANCE - ENDING: $63,097 The accompanying notes are an integral part of these statements. 56 ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AMBULANCE FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Hospital collections - ambulance $725,000 $732,334 $7,334 County ambulance 579,636 564,642 (14,994) Bingham Memorial - Contribution 61,800 44,640 (17,160) Miscellaneous 800 800 Total Revenue: 1,366,436 1,342,416 (24,020) EXPENDITURES: Salaries 745,648 711,283 34,365 Benefits 452,406 444,123 8,283 Protective clothing 3,000 1,807 1,193 Travel and training 6,000 4,140 1,860 Office supplies 7,100 3,058 4,042 Maintenance 26,000 18,201 7,799 Utilities and telephone 5,000 6,504 (1,504) Fuel 20,000 19,807 193 Professional services 500 500 Department supplies & other 30,000 31,361 (1,361) Collection expense & refunds 58,500 62,775 (4,275) Insurance 10,287 10,287 0 Capital outlay 192,218 8,297 183,921 Total Expenditures: 1,556,659 1,321,643 235,016 EXCESS REVENUE (EXPENDITURES): (190,223) 20,773 210,996 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($190,223) 20,773 $210,996 FUND BALANCE - BEGINNING: (457,904) FUND BALANCE - ENDING: ($437,131) The accompanying notes are an integral part of these statements. 57 ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION FUND YEAR ENDED SEPTEMBER 30, 2017 Original & Variance Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $223,852 $215,264 ($8,588) State sales tax 27,631 21,376 (6,255) County participation 20,000 20,000 0 Golf course 660,209 617,017 (43,192) Park reservation fees & donations 10,662 14,400 3,738 Recreation fees & donations 20,907 33,675 12,768 Swimming pool fees & donations 157,320 111,156 (46,164) Storm water maintenance fee 20,000 (20,000) Grants 24,762 24,762 Other 1,600 1,390 (210) Total Revenue: 1,142,181 1,059,040 (83,141) EXPENDITURES (Parks): Salaries 135,053 113,452 21,601 Benefits 61,001 60,957 44 Clothing allowance 800 576 224 Travel and training 2,000 543 1,457 Office supplies 4,000 3,870 130 Maintenance 66,000 59,303 6,697 Utilities and telephone 17,200 17,214 (14) Fuel 25,000 14,189 10,811 Professional services 500 690 (190) Department supplies and other 26,150 27,015 (865) Insurance 4,142 4,142 0 Jensen Grove water 0 Capital outlay 30,500 81,090 (50,590) Total Expenditures (Parks): 372,346 383,041 (10,695) EXPENDITURES (Recreation): Salaries 60,263 53,571 6,692 Benefits 21,679 13,455 8,224 Clothing allowance 500 890 (390) Maintenance 31,400 47,095 (15,695) Utilities and telephone 7,200 7,123 77 Professional services 500 500 Department supplies and other 20,500 15,873 4,627 Insurance 1,894 1,894 0 Capital outlay 30,500 29,934 566 Total Expenditures (Recreation): 174,436 169,835 4,601 The accompanying notes are an integral part of these statements. 58 ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION FUND - (CONTINUED) YEAR ENDED SEPTEMBER 30, 2017 Original & Variance Final Favorable Budget Actual (Unfavorable) EXPENDITURES (Pool): Salaries $243,508 $166,063 $77,445 Benefits 62,725 54,049 8,676 Clothing allowance 1,200 419 781 Travel and training 4,500 520 3,980 Office supplies 7,925 7,235 690 Maintenance 24,000 26,938 (2,938) Utilities and telephone 64,250 54,775 9,475 Professional services 1,000 9,723 (8,723) Department supplies and other 20,150 18,788 1,362 Insurance 3,407 3,407 0 Total Expenditures (Pool): 432,665 341,917 90,748 EXPENDITURES (Golf): Salaries 272,538 257,069 15,469 Benefits 186,131 197,457 (11,326) Clothing allowance 1,250 690 560 Travel and training 5,000 4,943 57 Office supplies 11,075 16,381 (5,306) Maintenance 69,500 75,994 (6,494) Utilities and telephone 29,000 32,819 (3,819) Fuel 15,500 15,900 (400) Professional services 465 (465) Resale items 90,000 115,451 (25,451) Department supplies and other 31,600 31,108 492 Insurance 4,859 4,859 0 Capital outlay 31,000 31,000 0 Total Expenditures (Golf): 747,453 784,136 (36,683) Total Fund Expenditures: 1,726,900 1,678,929 47,971 EXCESS REVENUE (EXPENDITURES): (584,719) (619,889) (35,170) OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 584,719 619,889 35,170 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: 0 FUND BALANCE - ENDING: $0 The accompanying notes are an integral part of these statements. 59 ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL WATER CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Interest on investments $0 $0 Miscellaneous 0 Total Revenue: 0 $0 0 EXPENDITURES: Availibility fees 0 0 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: 2,097,965 FUND BALANCE - ENDING: $2,097,965 60 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL WASTEWATER CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Interest on investments $0 $0 Miscellaneous 0 Total Revenue: 0 $0 0 EXPENDITURES: Availability fees 0 0 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: 1,197,225 FUND BALANCE - ENDING: $1,197,225 61 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- BLACKFOOT URBAN RENEWAL AGENCY SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $555,000 $624,852 $69,852 Investment income 1,055 4,370 3,315 Grant application fees 100 100 Total Revenue: 556,055 629,322 73,267 EXPENDITURES: Administration 8,000 937 7,063 Profession fees 16,000 18,560 (2,560) Projects: Downtown District: Downtown redevelopment 125,000 (125,000) Economic development 800,000 800,000 Façade improvements 60,000 14,950 45,050 Hasselbring Project 19,581 (19,581) Nuart 104,320 (104,320) Potato Museum 65,000 65,000 Riverview District: Technology Park 20,000 20,000 0 Façade improvements 40,000 40,000 Economic development 175,000 175,000 Bond refinancing costs 0 Tax note payments 113,305 117,825 (4,520) Total Expenditures: 1,297,305 421,173 876,132 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($741,250) 208,149 $949,399 FUND BALANCE - BEGINNING: 939,165 FUND BALANCE - ENDING: $1,147,314 The accompanying notes are an integral part of these statements. 62 ---PAGE BREAK--- Other Supplemental Information 63 ---PAGE BREAK--- CITY OF BLACKFOOT COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2017 Capital Airport Cemetery Library Improvements Fund Fund Fund Fund ASSETS: Cash and investments $294,433 $56,879 $229,532 $206,862 Receivables: Property taxes 55 6,941 11,725 337 Bingham County 5,313 530 Grants receivable 361,639 Due from other funds Total Assets: $656,127 $69,133 $241,787 $207,199 LIABILITIES: Accounts payable $401,286 $1,442 $49,423 Due to other funds Total Liabilities: 401,286 1,442 49,423 $0 DEFERRED INFLOW OF RESOURCES Unavailable revenue - Property taxes 27 5,704 9,543 $155 FUND BALANCE: Unassigned Assigned - Capital improvements 207,044 Committed 254,814 61,987 182,821 Total Fund Balance: 254,814 61,987 182,821 207,044 Total Liabilities and Fund Balance: $656,127 $69,133 $241,787 $207,199 The accompanying notes are an integral part of these statements 64 ---PAGE BREAK--- Fire and Golf Health Total Ambulance Course Street Sanitation Parks Library Care Non-major Replacement Capital Capital Capital Capital Capital Reserve Governmental Fund Fund Fund Fund Fund Fund Fund Funds $20,861 $453,634 $500,000 $64,615 $65,231 $204,497 $2,096,544 19,058 5,843 361,639 146,366 146,366 $0 $20,861 $600,000 $500,000 $64,615 $65,231 $204,497 $2,629,450 $452,151 $65,575 65,575 65,575 $0 $0 $0 $0 $0 $0 517,726 15,429 (65,575) (65,575) 20,861 600,000 500,000 64,615 65,231 1,457,751 204,497 704,119 (65,575) 20,861 600,000 500,000 64,615 65,231 204,497 2,096,295 $0 $20,861 $600,000 $500,000 $64,615 $65,231 $204,497 $2,629,450 The accompanying notes are an integral part of these statements 65 ---PAGE BREAK--- Capital Airport Cemetery Library Improvements REVENUES: Fund Fund Fund Fund Property taxes $269 $135,611 $228,543 $790 Sales and use taxes 18,496 22,690 Licenses and fees 34,847 57,625 16,437 Grants and contributions 642,922 644 Blackfoot Rural Library District 222,430 Interest 102 1,347 2,300 220 Miscellaneous 1,881 Total Revenues: 680,021 213,079 493,044 1,010 EXPENDITURES: General government 182,127 Public Safety Parks Airport 806,376 Library 436,218 Total Expenditures: 806,376 182,127 436,218 0 EXCESS REVENUE (EXPENDITURES): (126,355) 30,952 56,826 1,010 OTHER FINANCING SOURCES (USES): Operating transfers (to) from other funds (100,000) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): (126,355) 30,952 56,826 (98,990) FUND BALANCE - BEGINNING: 381,169 31,035 125,995 306,034 FUND BALANCE - ENDING: $254,814 $61,987 $182,821 $207,044 CITY OF BLACKFOOT COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2017 66 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- Fire and Golf Health Total Ambulance Course Street Sanitation Parks Library Care Non-major Replacement Capital Capital Capital Capital Capital Reserve Governmental Fund Fund Fund Fund Fund Fund Fund Funds $365,213 41,186 $177,791 286,700 643,566 222,430 3,969 $70,988 72,869 $0 $0 $0 $0 70,988 $0 177,791 1,635,933 15,556 197,683 0 33,874 33,874 806,376 436,218 0 0 0 0 33,874 0 15,556 1,474,151 0 0 0 0 37,114 0 162,235 161,782 (15,600) (115,600) 0 0 0 0 21,514 0 162,235 46,182 (65,575) 20,861 600,000 500,000 43,101 65,231 42,262 2,050,113 ($65,575) $20,861 $600,000 $500,000 $64,615 $65,231 $204,497 $2,096,295 67 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AIRPORT FUND YEAR ENDED SEPTEMBER 30, 2017 Variance Original Final Favorable Budget Budget Actual (Unfavorable) REVENUE: Property taxes $300 $300 $269 ($31) Charges for services 35,000 35,000 34,847 (153) Fuel 50,000 50,000 (50,000) State sales tax 7,000 7,000 (7,000) Miscellaneous 3,000 3,000 9,644 6,644 Grants and contributions 644,422 644,422 Interest on investments 350 350 102 (248) Total Revenue: 95,650 95,650 689,284 593,634 EXPENDITURES: Salaries 22,887 22,887 21,640 1,247 Benefits 9,330 9,330 9,361 (31) Office supplies 1,450 1,450 3,690 (2,240) Travel and training 1,000 1,000 1,000 Maintenance 5,000 5,000 15,953 (10,953) Utilities and telephone 11,560 11,560 8,328 3,232 Fuel 50,500 50,500 50,500 Professional services 7,200 7,200 15,179 (7,979) Department supplies and other 2,000 2,000 270 1,730 Insurance 4,827 4,827 4,877 (50) Grant expense 0 725,000 687,374 37,626 Capital outlay 80,000 80,000 48,967 31,033 Total Expenditures: 195,754 920,754 815,639 105,115 EXCESS REVENUE (EXPENDITURES): (100,104) (825,104) (126,355) 698,749 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 100,104 100,104 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 ($725,000) (126,355) $698,749 FUND BALANCE - BEGINNING: 381,169 FUND BALANCE - ENDING: $254,814 The accompanying notes are an integral part of these statements. 68 ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CEMETERY FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $134,471 $135,611 $1,140 Charges for services 58,000 57,625 (375) State sales tax 11,068 18,496 7,428 Interest on investments 500 1,347 847 Total Revenue: 204,039 213,079 9,040 EXPENDITURES: Salaries 92,883 86,191 6,692 Benefits 68,895 61,378 7,517 Clothing 500 243 257 Office supplies 2,710 451 2,259 Travel and training 750 349 401 Maintenance 12,000 10,153 1,847 Utilities and telephone 5,450 2,945 2,505 Fuel 5,500 3,528 1,972 Professional services 8,500 9,950 (1,450) Department supplies and other 4,700 4,788 (88) Insurance 2,151 2,151 0 Capital outlay 0 0 0 Total Expenditures: 204,039 182,127 21,912 EXCESS REVENUE (EXPENDITURES): 0 30,952 30,952 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 30,952 $30,952 FUND BALANCE - BEGINNING: 31,035 FUND BALANCE - ENDING: $61,987 69 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LIBRARY FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $227,424 $228,543 $1,119 Charges for services 17,197 16,437 (760) State sales tax 22,690 22,690 Blackfoot Rural Library District 222,430 222,430 0 Interest on investments 1,500 2,300 800 Private contributions 1,143 644 (499) Total Revenue: 469,694 493,044 23,350 EXPENDITURES: Salaries 231,102 194,897 36,205 Benefits 74,400 70,856 3,544 Books and subscriptions 95,800 94,356 1,444 Travel and training 2,250 275 1,975 Office supplies 16,710 17,065 (355) Maintenance 20,000 20,575 (575) Utilities and telephone 15,500 14,872 628 Professional services 4,500 3,433 1,067 Department supplies and other 16,050 12,634 3,416 Insurance 4,994 4,994 0 Capital outlay 8,500 2,261 6,239 Total Expenditures: 489,806 436,218 53,588 EXCESS REVENUE (EXPENDITURES): (20,112) 56,826 76,938 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 20,111 0 (20,111) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): 56,826 $56,827 FUND BALANCE - BEGINNING: 125,995 FUND BALANCE - ENDING: $182,821 70 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CAPITAL IMPROVEMENTS FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $790 $790 Sales tax 0 Interest on investments 220 220 Total Revenue: $0 1,010 1,010 EXPENDITURES: Capital outlay 0 0 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 1,010 1,010 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds (100,000) (100,000) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 (98,990) ($98,990) FUND BALANCE - BEGINNING: 306,034 FUND BALANCE - ENDING: $207,044 71 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL FIRE AND AMBULANCE REPLACEMENT FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Interest on investments $0 $0 $0 Total Revenue: 0 0 0 EXPENDITURES: Capital outlay 0 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: (65,575) FUND BALANCE - ENDING: ($65,575) 72 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GOLF COURSE CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Interest on investments $0 $0 $0 Miscellaneous 0 Total Revenue: 0 0 0 EXPENDITURES: Capital outlay 0 Total Expenditure: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES:) $0 0 $0 FUND BALANCE - BEGINNING: 20,861 FUND BALANCE - ENDING: $20,861 73 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL STREET CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable REVENUE: Interest on investments $0 $0 $0 Miscellaneous 0 Total Revenue: 0 0 0 EXPENDITURES: Capital outlay 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: 600,000 FUND BALANCE - ENDING: $600,000 74 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL SANITATION CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Interest on investments $0 $0 Miscellaneous 0 Total Revenue: 0 $0 0 EXPENDITURES: Capital outlay 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: 500,000 FUND BALANCE - ENDING: $500,000 75 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Miscellaneous $0 $70,988 $70,988 Total Revenue: 0 70,988 70,988 EXPENDITURES: Capital outlay 0 33,874 (33,874) Total Expenditures: 0 33,874 (33,874) EXCESS REVENUE (EXPENDITURES): 0 37,114 37,114 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 (15,600) (15,600) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 21,514 $21,514 FUND BALANCE - BEGINNING: 43,101 FUND BALANCE - ENDING: $64,615 76 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LIBRARY CAPITAL FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Interest on investments $0 $0 Miscellaneous 0 Total Revenue: 0 $0 0 EXPENDITURES: Loss on investments 0 Total Expenditures: 0 0 0 EXCESS REVENUE (EXPENDITURES): 0 0 0 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 0 $0 FUND BALANCE - BEGINNING: 65,231 FUND BALANCE - ENDING: $65,231 77 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- CITY OF BLACKFOOT SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HEALTH CARE RESERVE FUND YEAR ENDED SEPTEMBER 30, 2017 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Reserve receipts $177,791 $177,791 Total Revenue: $0 177,791 177,791 EXPENDITURES: Benefits administration 15,556 (15,556) Total Expenditures: 0 15,556 (15,556) EXCESS REVENUE (EXPENDITURES): 0 162,235 162,235 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 162,235 $162,235 FUND BALANCE - BEGINNING: 42,262 FUND BALANCE - ENDING: $204,497 78 The accompanying notes are an integral part of these statements. ---PAGE BREAK--- Single Audit Section 79 ---PAGE BREAK--- Morgan J Hatt CPA PC Certified Public Accountant 1855 Satterfield Drive [EMAIL REDACTED] Phone : (208) 317-6040 Pocatello, Idaho 83201 Fax: (208) 242-3782 Honorable Mayor and Members of the City Council City of Blackfoot, Idaho 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 I 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 Blackfoot Urban Renewal District (a discretely presented component unit), each major fund, and the aggregate remaining fund information of the City of Blackfoot, Idaho, as of and for the year ended September 30, 2017, and the related notes to the financial statements, which collectively comprise City’s basic financial statements, and have issued our report thereon dated January 19, 2018. Internal Control Over Financial Reporting In planning and performing my audit of the financial statements, I considered the City’s internal control over financial reporting (internal control) to determine the audit procedures that are appropriate in the circumstances for the purpose of expressing my opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, I 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 a combination of deficiencies in internal control such that there is a reasonable possibility that a material misstatement of the entity’s financial statements will not be prevented or detected and corrected on a timely basis. A significant deficiency is a deficiency or a combination of deficiencies in internal control that is less severe than a material weakness, yet important enough to merit attention by those charged with governance. 80 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 My consideration of internal control was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control that might be material weaknesses or significant deficiencies. Given these limitations, during the audit, I did not identify any deficiencies in internal control that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified. Compliance and Other Matters As part of obtaining reasonable assurance about whether the City’s financial statements are free from material misstatement, I 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 my audit, and accordingly, I do not express such an opinion. The results of my tests disclosed no instances of non- compliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the entity’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the entity’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho January 19, 2018 Morgan J Hatt CPA PC 81 ---PAGE BREAK--- Morgan J Hatt CPA PC Certified Public Accountant 1855 Satterfield Drive [EMAIL REDACTED] Phone : (208) 317-6040 Pocatello, Idaho 83201 Fax: (208) 242-3782 Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control over Compliance. Report on Compliance for Each Major Federal Program I have audited the City of Blackfoot, Idaho’s compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of City’s major Federal programs for the year ended September 30, 2017. Major Federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned Costs. Management’s Responsibility Management is responsible for compliance with the requirements of laws, regulations, contracts, and grants applicable to its Federal programs. Auditor’s Responsibility My responsibility is to express an opinion on compliance for each of the City’s major Federal programs based on my audit of the types of compliance requirements referred to above. I conducted my audit of compliance in accordance with auditing standards generally accepted in the United States of America; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that I plan and perform the audit to obtain reasonable assurance about whether non-compliance with the types of compliance requirements referred to above that could have a direct and material effect on a major Federal program occurred. An audit includes examining, on a test basis, evidence about the City’s compliance with those requirements and performing such other procedures as I considered necessary in the circumstances. I believe that my audit provides a reasonable basis for my opinion on compliance for each major Federal program. However, my audit does not provide a legal determination of the City’s compliance. 82 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 Opinion on Each Major Federal Program In my opinion, the City of Blackfoot, Idaho, complied, in all material respects, with the types of compliance requirements referred to above that could have a direct and material effect on each of its major Federal programs for the year ended September 30, 2017. Report on Internal Control Over Compliance Management is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing my audit of compliance, I considered the City’s internal control over compliance with the types of requirements that could have a direct and material effect on each major Federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major Federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, I do not express an opinion on the effectiveness of the City’s internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent or detect and correct non-compliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material non-compliance with a type of compliance requirement of a Federal program will not be prevented or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. My consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies. I did not identify any deficiencies in internal control over compliance that I consider to be material weaknesses. However, material weaknesses may exist that have not been identified. The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal control over compliance and the results of that testing based on the requirements of OMB Circular A-133. Accordingly, this report is not suitable for any other purpose. Pocatello, Idaho January 19, 2018 Morgan J Hatt CPA PC 83 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO BLACKFOOT, IDAHO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED SEPTEMBER 30, 2017 Catalogue of Federal Title Domestic Assistance NumberExpenditures Department of Justice: Body Armor (St of Id. pass-thru funding) 16.607 $3,070 Department of Housing & Urban Development: (St of Id pass-thru funding) Community Development Block Grant -Waste Water Improvement 14.228 124,130 Community Development Block Grant -Waste Water Improvement 14.228 114,906 Community Development Block Grant-Senior Citizen Center 14.228 150,000 Subtotal of Block Grant Cluster: 389,036 Department of Transportation : Airport Improvement - Runway protection (Direct funding) 20.106 32,790 Airport Improvement 2016 (Direct funding) 20.106 216,045 Airport Improvement - 2017 (Direct funding) 20.106 370,927 Subtotal Airport Improvement: 619,762 Highway Planning & Construction (Direct funding) 20.205 109,473 Community Highway Safety (St of Id pass-thru funding) 20.600 3,278 National Priority Safety Program (St of Id pass-thru funding) 20.616 11,154 Subtotal Department of Transportation 743,667 Environmental Protection Agency (Direct funding): Capitalization grants & revolving loans 66.468 2,285,368 US Department of Army Corp of Engineers (Direct funding): Waste Water Improvement 12.000 100,219 US Department of Homeland Security (Direct funding): FEMA Hazard Mitigation 97.039 44,906 Total Federal Expenditures: $3,566,266 Note 1: Basis of Presentation - The accompanying Schedule of Expenditures of Federal Awards (the Schedule) includes the Federal award activity of the City of Blackfoot, Idaho for the year ended September 30, 2017. The information in this schedule is presented in accordance with the requirements of Title 2 U.S., Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Because the Schedule presents only a selected portion of the City's operations, it is not intended to and does not present the financial position, changes in net assets, or cash flows of the City of Blackfoot, Idaho. Note 2: Summary of Significant Accounting Policies - Expenditures reported on the Schedule are on the accrual basis of accounting. Such expenditures are regognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable or are limited as to reimbursement. Note 3: Indirect Cost Rate - The City of Blackfoot, Idaho has elected not to use the 10% de minimus cost rate allowed under the Uniform Guidance. 84 ---PAGE BREAK--- Section I - Summary of Auditor's Results: Financial Statements: Type of auditor's report issued: Qualified Internal control over financial reporting: Material weaknesses identified? No Reportable conditions identified that are not considered to be material weaknesses? No Noncompliance material to financial statements noted? No Federal Awards: Internal control over major programs: Material weaknesses identified? No Reportable conditions identified that are not considered to be material weaknesses? No Type of auditor's report issued on compliance for major programs? Unmodified Any audit findings disclosed that are required to be reported in accordance with 2 CFR Section 200.516(a)? No CFDA Number(s) Name of Federal Program 66.468 Capitalization Grants for Drinking Water State Revolving Funds Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? No Section II - Summary of Auditor's Results: None Section III - Federal Award Findings and Questioned Costs: None CITY OF BLACKFOOT, IDAHO SCHEDULE OF FINDINGS AND QUESTIONED COSTS YEAR ENDED SEPTEMBER 30, 2017 Identification of major programs: 85