Document Blackfoot_doc_be625938ee

CITY OF BLACKFOOT, IDAHO BASIC FINANCIAL STATEMENTS AND OTHER FINANCIAL INFORMATION SEPTEMBER 30, 2021 ---PAGE BREAK--- ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS Page Number FINANCIAL SECTION: Independent Auditor’s Opinion 6 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 9 Basic Financial Statements: Government-wide Financial Statements: Statement of Net Position 11 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 Fiduciary Net Position 24 Statement of Changes in Fiduciary Net Position 25 Notes to Financial Statements 26 3 ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS – (CONTINUED) Page Number Required Supplementary Information: Schedule of Employer’s Share of Net Pension Liability 60 Schedule of Employer’s Contributions 60 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – General Fund 62 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Street Fund 65 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Ambulance Fund 66 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Parks and Recreation Fund 67 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Blackfoot Urban Renewal District 69 Other Supplemental Information: Combining Balance Sheet - Non-major Governmental Funds 72 Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Non-major Governmental Funds 74 Schedule of Revenues, Expenditures, and Changes in Fund Balances Budget and Actual – Airport Fund 76 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Cemetery Fund 77 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Library Fund 78 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Capital Improvements Fund 79 Schedule of Revenue, Expenditures, and Changes in Fund Balances Budget and Actual – Health Care Reserve Fund 80 4 ---PAGE BREAK--- CITY OF BLACKFOOT AUDITED FINANCIAL REPORT YEAR ENDED SEPTEMBER 30, 2021 TABLE OF CONTENTS – (CONTINUED) Page Number SINGLE AUDIT SECTION: Report on Compliance for Each Major Program and Internal Control over Compliance 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 fiduciary activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Blackfoot, Idaho (the City), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements as listed in the Table of Contents. Management’s Responsibility for the Financial Statements Management is responsible for the preparation and fair presentation of these financial statements in accordance with accounting principles generally accepted in the United States of America; this includes the design, implementation, and maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free from material misstatement, whether due to fraud or error. Auditor’s Responsibility 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 City’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 City’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 our 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 respective financial position of the governmental activities, the business-type activities, the fiduciary activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City, as of September 30, 2021, and the respective changes in financial position, and, where applicable, cash flows thereof for the year then ended in accordance with accounting principles generally accepted in the United States of America. Other Matters 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. Accounting principles generally accepted in the United States of America require that the Management’s Discussion and Analysis, the Schedules of Net Pension Liability & 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, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. 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 additional analysis as required by Title 2 U.S. Code of Federal Regulations 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 24, 2022, 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, grant agreements, and other matters. The purpose of that report is solely 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 the effectiveness of the City’s internal control over financial reporting or on compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control over financial reporting and compliance. Pocatello, Idaho January 24, 2022 Morgan J Hatt CPA PC 8 ---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 fiduciary activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Blackfoot, Idaho (the City), as of and for the year ended September 30, 2021, and the related notes to the financial statements, which collectively comprise the City’s basic financial statements, and have issued my report thereon dated January 24, 2022. 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 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. 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 my 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. 9 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 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 noncompliance or other matters that are required to be reported under Government Auditing Standards. Purpose of this Report The purpose of this report is solely to describe the scope of my testing of internal control and compliance, and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City’s internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Pocatello, Idaho January 24, 2022 Morgan J Hatt CPA PC 10 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF NET POSITION SEPTEMBER 30, 2021 Total Component Unit: Governmental Business-type Primary Blackfoot Urban ASSETS: Activities Activities Government Renewal Agency Current Assets: Cash and investments $5,772,554 $13,156,043 $18,928,597 $2,477,672 Property taxes receivable 137,992 137,992 9,216 Other receivables 590,860 381,175 972,035 Utility accounts receivable, net 647,888 647,888 Golf inventory 37,845 37,845 Non-current Assets: Operating Lease Right of Use Asset - net 309,669 309,669 Land 1,251,390 648,105 1,899,495 Capital assets, net 16,461,643 36,181,049 52,642,692 Restricted cash 258,256 258,256 181,489 City's share of unfunded PERSI asset 62,343 20,569 82,912 Total Assets: 24,624,296 51,293,085 75,917,381 2,668,377 DEFERRED OUTFLOWS: Deferred PERSI outflow of resources 918,566 155,341 1,073,907 0 LIABILITIES: Current liabilities: Accounts payable 438,161 744,238 1,182,399 109,558 Accrued leave 518,089 77,753 595,842 Accrued interest 157,071 157,071 Customer deposits 90,962 90,962 Operating Lease payable due within one year 89,464 89,464 Finance Lease payable due within one year 38,855 38,855 DEQ loan DW 1001 192,154 192,154 DEQ loan WW 1501 258,256 258,256 2006 Revenue bonds due within one year 80,000 2021 Revenue bonds due within one year 163,828 Non-current liabilities: Operating Lease payable due beyond one year 219,897 219,897 Finance Lease payable due beyond one year 81,437 81,437 DEQ loan DW 1001 2,116,567 2,116,567 DEQ Loan WW 1501 3,227,000 3,227,000 DEQ Loan WW 1703 13,843,793 13,843,793 2006 Revenue bonds due beyond one year 390,000 2021 Revenue bonds due beyond one year 1,462,210 Total Liabilities: 1,385,903 20,707,794 22,093,697 2,205,596 DEFERRED OUTFLOWS: Deferred PERSI inflow of resources 2,412,996 412,122 2,825,118 0 NET POSITION: Net investment in capital assets 17,593,049 17,191,384 34,784,433 Restricted - for debt service 258,256 258,256 Unrestricted 4,150,914 12,878,870 17,029,784 462,781 Total Net Position: $21,743,963 $30,328,510 $52,072,473 $462,781 The accompanying notes are an integral part of these statements. 11 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF ACTIVITIES YEAR ENDED SEPTEMBER 30, 2021 Program Revenues Charges for Grants and Expenses Services Contributions Primary Government: Governmental Activities: General government $1,827,313 $382,665 $489,815 Public safety 6,331,173 2,601,827 93,876 Parks and recreation 1,238,412 845,354 21,500 Library 381,298 246,516 12,375 Highways and streets 1,697,616 70,704 77,106 Cemetery 161,584 74,475 Airport 384,816 90,304 35,735 Interest on long-term debt 5,021 Total Governmental Activities: 12,027,233 4,311,845 730,407 Business-type Activities: Water 1,199,247 2,209,926 604,000 Sewer 3,104,713 3,892,044 1,686,023 Sanitation 1,127,789 1,316,715 Interest on long-term debt 296,433 Total Business-type Activities: 5,728,182 7,418,685 2,290,023 Total Primary Government: $17,755,415 $11,730,530 $3,020,430 Component Units: Interest on long-term debt $60,277 Blackfoot Urban Renewal Agency 1,358,638 $75 $1,418,915 $75 $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 Administration charges Health deductible charges Total General Revenues and Transfers: Change in net position: Net Position October 1, 2020: Net Position September 30, 2021 The accompanying notes are an integral part of these statements. 12 ---PAGE BREAK--- Net (Expense) Revenue and Changes in Net Position Component Unit: Primary Government Blackfoot Governmental Business-type Urban Renewal Activities Activities Total Agency ($954,833) ($954,833) (3,635,470) (3,635,470) (371,558) (371,558) (122,407) (122,407) (1,549,806) (1,549,806) (87,109) (87,109) (258,777) (258,777) (5,021) (5,021) (6,984,981) (6,984,981) $1,614,679 1,614,679 2,473,354 2,473,354 188,926 188,926 (296,433) (296,433) 3,980,526 3,980,526 (3,004,455) ($60,277) (1,358,563) 5,283,127 5,283,127 986,798 2,689 2,689 35,293 35,293 1,184,560 1,184,560 231,945 231,945 726,939 726,939 32,710 32,710 4,331 39,783 39,783 628,986 (628,986) 0 18,060 (18,060) 0 8,184,092 (647,046) 7,537,046 (427,711) 1,199,111 3,333,480 4,532,591 (427,711) 20,544,852 26,995,030 47,539,882 890,492 $21,743,963 $30,328,510 $52,072,473 $462,781 The accompanying notes are an integral part of these statements. 13 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO BALANCE SHEET GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Parks and General Street Ambulance Recreation ASSETS: Fund Fund Fund Fund Cash and investments $2,600,475 $1,218,725 $168,518 $149,031 Receivables: Property taxes 103,320 14,081 5,671 State of Idaho 429,223 157,219 Other 4,418 Due from other funds 53,868 Golf clubhouse inventory 37,845 Restricted Cash Total Assets: $3,191,304 $1,390,025 $168,518 $192,547 LIABILITIES: Due to other funds Accounts payable $23,162 $60,482 $58,202 $113,185 Total Liabilities: 23,162 60,482 58,202 113,185 DEFERRED INFLOW OF RECOURCES: Unavailable revenue - Property taxes 88,099 12,527 5,093 FUND BALANCE: Restricted for debt service Assigned - Capital improvements 600,000 40,045 Assigned - Golf fee increase reserve 47,543 Unassigned 3,080,043 717,016 110,316 (13,319) Total Fund Balance: 3,080,043 1,317,016 110,316 74,269 Total Liabilities, Deferred Resources, & Fund Balance $3,191,304 $1,390,025 $168,518 $192,547 The accompanying notes are an integral part of these statements. 14 ---PAGE BREAK--- Other Total Blackfoot Governmental Primary Urban Renewal Funds Governmental Agency $1,635,805 $5,772,554 $2,477,672 14,920 137,992 9,216 586,442 4,418 53,868 37,845 0 181,489 $1,650,725 $6,593,119 $2,668,377 $53,868 $53,868 183,130 438,161 $109,558 236,998 492,029 109,558 13,374 119,093 6,235 181,489 389,087 1,029,132 47,543 1,011,266 4,905,322 2,371,095 1,400,353 5,981,997 2,552,584 $1,650,725 $6,593,119 $2,668,377 The accompanying notes are an integral part of these statements. 15 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS TO THE STATEMENT OF NET POSITION FOR THE YEAR ENDED SEPTEMBER 30, 2021 Total Blackfoot Primary Urban Renewal Government Agency Total Fund Balance: $5,981,997 $2,552,584 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 operating lease right of use asset: 445,616 Operating lease right of use asset amortization to date: (135,947) Cost of capital assets: 46,176,822 Depreciation expense to date: (28,463,789) City's share of unfunded PERSI asset: 62,343 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. 119,093 6,235 Deferred amounts are not current financial resources/uses. Therefore, they are not reported in the governmental funds. Deferred PERSI outflows: 918,566 Deferred PERSI inflows: (2,412,996) 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: (518,089) Operating lease payments payable: (309,361) Finance leases payable: (120,292) 2006 Revenue bonds payable: (470,000) 2021 Revenue bonds payable: (1,626,038) Net Position: $21,743,963 $462,781 The accompanying notes are an integral part of these statements. 16 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 17 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2021 Parks and General Street Ambulance Recreation REVENUE: Fund Fund Fund Fund Property taxes $3,889,846 $589,793 $223,895 Other taxes 2,689 Franchise taxes 105,099 66,854 Licenses and fees 268,003 $800,424 817,379 County shared 57,169 35,293 703,515 21,500 State of Idaho 1,416,505 726,939 Blackfoot - Snake River Fire District 863,818 Blackfoot Rural Library District School District Resource Officer 175,853 Grants and contributions 542,388 77,106 35,196 Interest 26,062 2,457 1,132 Administrative charges 779,238 Miscellaneous 52,339 3,850 55 27,975 Total Revenue: 8,179,009 1,502,292 1,539,190 1,091,881 EXPENDITURES: Current Operating: General government 1,869,361 Public safety 5,026,439 1,518,892 Parks and recreation 1,111,993 Library Highways and streets 1,158,798 Airport Capital Outlay Debt service - principal Debt service - interest Total Expenditures: 6,895,800 1,158,798 1,518,892 1,111,993 EXCESS REVENUE (EXPENDITURES): 1,283,209 343,494 20,298 (20,112) OTHER FINANCING SOURCES (USES): 2021 Revenue bonds Operating transfers (to) from other funds 0 0 0 0 NET CHANGE IN FUND BALANCES: 1,283,209 343,494 20,298 (20,112) FUND BALANCE - BEGINNING: 1,796,834 973,522 90,018 94,381 FUND BALANCE - ENDING: $3,080,043 $1,317,016 $110,316 $74,269 The accompanying notes are an integral part of these statements. 18 ---PAGE BREAK--- Other Total Blackfoot Governmental Primary Urban Renewal Funds Government Agency $571,795 $5,275,329 $986,409 2,689 171,953 237,198 2,123,004 817,477 2,143,444 863,818 236,510 236,510 175,853 52,217 706,907 3,059 32,710 4,331 779,238 1,687 85,906 75 1,102,466 13,414,838 990,815 295,200 2,164,561 49,441 6,545,331 1,111,993 387,948 387,948 1,158,798 212,083 212,083 256,294 256,294 1,309,197 263,849 60,277 1,151,525 11,837,008 1,682,764 (49,059) 1,577,830 (691,949) 1,814,887 0 0 0 (49,059) 1,577,830 1,122,938 1,449,412 4,404,167 1,429,646 $1,400,353 $5,981,997 $2,552,584 The accompanying notes are an integral part of these statements. 19 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO 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, 2021 Total Blackfoot Primary Urban Renewal Government Agency Net Change in Fund Balance -Total Governmental Funds: $1,577,830 $1,122,938 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: 7,798 389 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: 385,360 This is the amount of current year depreciation: (1,301,687) Long-term liabilities are not recorded in governmental funds. This is the amount of finance lease payments: 37,575 This is the amount of operating lease payments: 89,731 This is the amount of 2021 revenue bond proceeds: (1,814,887) This is the amount of the 2006 Revenue Bond principal payment: 75,000 This is the amount of the 2021 Revenue Bond principal payment: 188,849 Liability for personal leave days are not recorded in governmental funds. This is the increase in leave during the year: (84,848) 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 revenue/(expense): 487,352 Change in Net Position: $1,199,111 ($427,711) The accompanying notes are an integral part of these statements. 20 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF NET POSITION PROPRIETARY FUNDS SEPTEMBER 30, 2021 Totals Water Sewer Sanitation (Memorandum ASSETS: Fund Fund Fund Only) Current Assets: Cash and investments $6,507,512 $4,877,959 $1,770,572 $13,156,043 Utility accounts receivable 194,697 328,266 124,925 647,888 Grants receivable 381,175 381,175 Non-current Assets: Land 234,569 413,536 648,105 Property and equipment - net of depreciation 5,184,762 30,798,694 197,593 36,181,049 Restricted Cash 258,256 258,256 City's share of unfunded PERSI Asset 4,523 9,597 6,449 20,569 Total Assets: 12,126,063 37,067,483 2,099,539 51,293,085 DEFERRED OUTFLOWS: Deferred PERSI outflow of resources 43,708 73,726 37,907 155,341 LIABILITIES: Current liabilities: Accrued leave 26,678 36,798 14,277 77,753 Accounts payable 96,591 621,895 25,752 744,238 Accrued interest 2,546 154,525 157,071 Customer deposits 90,962 90,962 DEQ loan DW 1001 192,154 192,154 DEQ loan WW 1501 258,256 258,256 Non-current liabilities: DEQ loan DW 1001 2,116,567 2,116,567 DEQ loan WW 1501 3,227,000 3,227,000 DEQ loan WW 1703 13,843,793 13,843,793 Total Liabilities: 2,525,498 18,142,267 40,029 20,707,794 DEFERRED INFLOWS: Deferred PERSI inflow of resources 115,533 195,478 101,111 412,122 NET POSITION: Net investment in capital assets 3,110,610 13,883,181 197,593 17,191,384 Restricted - for debt service 258,256 258,256 Assigned - Capital improvements 2,097,965 1,197,225 500,000 3,795,190 Unrestricted 4,320,165 3,464,802 1,298,713 9,083,680 Total Net Position: $9,528,740 $18,803,464 $1,996,306 $30,328,510 The accompanying notes are an integral part of these statements. 21 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2021 Totals Water Sewer Sanitation (Memorandum OPERATING REVENUE: Fund Fund Fund Only) Service fees $2,162,231 $3,885,806 $1,316,641 $7,364,678 Other 47,695 6,238 74 54,007 Total Revenue: 2,209,926 3,892,044 1,316,715 7,418,685 OPERATING EXPENSES: Salaries 301,227 490,846 252,134 1,044,207 Benefits 217,322 377,640 235,790 830,752 Clothing 2,644 8,766 977 12,387 Travel and training 774 120 894 Office supplies 18,473 43,674 3,292 65,439 Maintenance 18,635 67,622 34,182 120,439 Utilities and telephone 187,031 169,863 6,068 362,962 Fuel 8,679 29,224 50,468 88,371 Professional services 67,823 258,126 325,949 Department supplies and other 63,645 94,918 6,853 165,416 Depreciation 270,487 1,235,456 79,720 1,585,663 Administrative services 148,262 371,736 108,988 628,986 Lab and DEQ fees 25,432 67,940 93,372 Lift stations 44,254 44,254 County services 408,463 408,463 Constructional materials 21,742 224,522 54,977 301,241 Total Expenses: 1,352,176 3,484,707 1,241,912 6,078,795 OPERATING INCOME (LOSS): 857,750 407,337 74,803 1,339,890 NON-OPERATING REVENUES (EXPENSES): Federal and State grants 604,000 1,686,023 2,290,023 Debt service-interest (42,722) (253,711) (296,433) INCOME (LOSS) BEFORE CONTRIBUTIONS & TRANSFERS 1,419,028 1,839,649 74,803 3,333,480 Transfers (to) from other funds 0 0 0 0 CHANGE IN NET POSITION: 1,419,028 1,839,649 74,803 3,333,480 NET POSITION - BEGINNING: 8,109,712 16,963,815 1,921,503 26,995,030 NET POSITION - ENDING: $9,528,740 $18,803,464 $1,996,306 $30,328,510 The accompanying notes are an integral part of these statements. 22 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED SEPTEMBER 30, 2021 Totals Water Sewer Sanitation (Memorandum Fund Fund Fund Only) CASH FLOWS FROM OPERATING ACTIVITIES: Receipts from City patrons $2,241,480 $3,870,360 $1,313,362 $7,425,202 Payments to suppliers (691,182) (2,013,102) (817,210) (3,521,494) Payments to employees (288,267) (485,747) (248,737) (1,022,751) City administrative charges (148,262) (371,736) (108,988) (628,986) Net Cash Provided by Operating Activities: 1,113,769 999,775 138,427 2,251,971 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES: Acquisition of fixed assets (8,070,516) (8,070,516) Grants 604,000 2,073,870 2,677,870 DEQ loan DW 1001 payments (231,719) (231,719) DEQ loan WW 1501 payments (258,256) (258,256) DEQ loan WW 1703 advances 7,032,960 7,032,960 Restricted cash (206,604) (206,604) Net Cash Applied to Financing Activities: 372,281 571,454 0 943,735 CASH FLOWS FROM INVESTING ACTIVITIES: Interest earned on investments 0 0 0 0 NET INCREASE (DECREASE) IN CASH 1,486,050 1,571,229 138,427 3,195,706 CASH AT BEGINNING OF YEAR: 5,021,462 3,306,730 1,632,145 9,960,337 CASH AT END OF YEAR: $6,507,512 $4,877,959 $1,770,572 $13,156,043 RECONCILIATION OF OPERATING INCOME (LOSS) TO NET INCOME: Net income (loss) $1,419,028 $1,839,649 $74,803 $3,333,480 Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities: Depreciation 270,487 1,235,456 79,720 1,585,663 Net PERSI plan expense (revenue) (23,365) (39,621) (20,538) (83,524) Investment income 0 Debt service interest 42,722 180,746 223,468 Grants (604,000) (1,686,023) (2,290,023) Transfers 0 (Increase) decrease in accounts receivable 51,073 (20,365) (2,237) 28,471 Increase (decrease) in accounts payable (42,176) (510,067) 6,679 (545,564) Net Cash Provided by Operating Activities: $1,113,769 $999,775 $138,427 $2,251,971 The accompanying notes are an integral part of these statements. 23 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF FIDUCIARY NET POSITION AT JUNE 30, 2021 Private Purpose Trust Funds Agency Fund ASSETS: Scholarship Accounts Total Cash and equivalents $19,391 $18,445 $37,836 LIABILITIES Accounts payable - vendors $6,171 $6,171 Due to the Blackfoot Youth Committee 4,712 4,712 Due to other 3,087 3,087 Due to Music in the Park 300 300 Due to the Round Up Program 78 78 Due from Ladie's Golf Association 755 755 Due from Mens' Golf Association 3,100 3,100 Due to Animal Shelter Vaccinations 50 50 Due from Animal Shelter Utilities 95 95 Due to Trunk or Treat 97 97 Total Liabilities: $0 18,445 18,445 NET POSITION: Restricted for scholarships 19,391 19,391 Total Liabilities and Net Position: $19,391 $18,445 $37,836 The accompanying notes are an integral part of these statements. 24 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF CHANGES IN FIDUCIARY NET POSITION YEAR ENDED SEPTEMBER 30, 2021 Private Purpose Trust Funds Scholarship ADDITIONS: Contributions $18,873 Investment income 0 Total Additions: 18,873 DEDUCTIONS: Miscellenous 77 Scholarships 27,000 Total Deductions: 27,077 CHANGE IN NET POSITION (8,204) NET POSITION - BEGINNING 27,595 NET POSITION - ENDING $19,391 The Accompanying notes are an integral part of these statements. 25 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS SEPTEMBER 30, 2021 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. 26 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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. 27 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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 fund equity as presented in these statements to the net position 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. 28 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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 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. 29 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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 Cash and Cash Equivalents are generally considered short-term, highly liquid investments with a maturity of three months or less from the purchase date. Investments are recorded at fair value in accordance with GASB Statement No. 72, Fair Value Measurement and Application. Accordingly, the change in fair value of investments is recognized as an increase or decrease to investment assets and investment income. 30 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 E. CASH AND INVESTMENTS – (CONTINUED) The City’s policy is to comply with Idaho State Statutes. 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 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 the 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 and Finance Association, and the Idaho Water Resource Board. 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 deposit accounts 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. 31 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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 Deposit 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. m. Money market funds whose portfolios consist of any allowed investment as specified in this section. The securities held in money market portfolios must be dollar-denominated, meaning that all principal and interest payments on such a security are payable to security holders in United States dollars. The City pools idle cash from all funds for purpose of increasing income through investment activities. As of September 30, 2021, the City’s investments consisted of $2,849,445 (27%) in the State of Idaho Local Government Diversified Bond fund (DBF), $5,840,117 (55%) in the State of Idaho Local Government Investment Pool (LGIP), and $1,955,559 (18%) in Moreton Asset Management. Fair Value of Investments The City measures and records its investments using fair value measurement guidelines established by generally accepted accounting principles. These guidelines recognize a three-tiered fair value hierarchy, as follows: Level 1- Valuations based on quoted prices in active markets for identical assets or liabilities. Since valuations are based upon quoted prices that are readily and regularly available, the valuation of these securities does not entail any significant degree of judgement. Securities classified as Level 1 inputs include U.S Government securities and other U.S. Agency and sovereign government obligations. 32 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 E. CASH AND INVESTMENTS – (CONTINUED) Level 2- Valuations based on quoted prices in markets that are not active or for which all significant inputs are observable, either directly or indirectly. Securities classified as Level 2 include corporate and municipal bonds, and “brokered” or securitized certificates of deposit. Level 3- Valuations based on inputs that are unobservable and significant to the overall fair value measurement. At September 30, 2021, 100% of DBF and LGIP investments are Level 2 valuations. Moreton Asset Management had the following recurring fair value measurements: Security Type Level 1 Level 2 Level 3 Other Total CD $1,620,551 $1,620,551 Corporate 291,388 291,388 Currency 0 MM Fund $38,517 38,517 $38,517 $1,911,939 $0 $0 $1,950,456 Interest Rate Risk Interest rate risk is the risk that changes in interest rates will adversely affect the fair value of an investment. As of September 30, 2021, Moreton Asset Management investments had the following maturities: Security Market Value + Accrued Type 0 to 1 Yr. 1 to 3 Yrs. 3 to 5 Yrs. Other Total CD $697,426 $726,675 $201,148 $1,625,249 Corporate 90,262 201,530 291,792 Currency 0 MM Fund 38,517 38,517 $826,205 $928,205 $201,148 $0 $1,955,558 33 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 E. CASH AND INVESTMENTS – (CONTINUED) Credit Risk Credit risk is the risk that an insurer or other counterparty to an investment will not fulfill its obligations. The City’s policy for reducing its exposure to credit risk is to comply with the previously noted State Statute guidelines as of September 30, 2021, Moreton Asset Management investments had the following credit ratings: Rating Book Value Mkt Value + Accrued AAA $38,517 $38,517 AA AA- 443,930 438,637 A+ 661,603 653,859 A A- 126,099 125,925 BBB+ 254,211 252,391 BBB- 100,918 100,247 NA 330,280 325,564 $1,955,558 $1,935,140 Concentration of Credit Risk 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. However, note that the DBF, the LGIP, and Moreton Asset Management are all diversified investment funds which are investing the City’s money numerous individual securities. This greatly reduces the City’s concentration of credit risk. 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. 34 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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 $15,000 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. 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. 35 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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. The other item (reported in the government-wide statements) is an amount related to the pension base 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. 36 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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. 37 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 3. RECEIVABLES The following is a detail of accounts receivable: General Street Fund Fund Total State of Idaho: Revenue sharing $387,269 $387,269 State liquor tax 41,954 41,954 Highway user tax $157,219 157,219 429,223 157,219 586,442 Other receivables: Accrued interest on investments 4,418 4,418 4,418 0 4,418 Total Receivables $433,641 $157,219 $590,860 4. 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. 38 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 4. CAPITAL ASSETS – (CONTINUED) Capital assets of the City for the year ended September 30, 2021 are as follows: Assets Accumulated Depreciation Balance Balance Balance Balance Governmental Activities: 10/1/2020 Change 9/30/2021 10/1/2020 Change 9/30/2021 Land $1,251,390 $1,251,390 Buildings 9,886,669 $166,568 10,053,237 $6,459,329 $311,129 $6,770,458 Infrastructure 27,703,813 17,048 27,720,861 15,454,643 582,286 16,036,929 Vehicles & Rolling Stock 5,208,739 (652,590) 4,556,149 4,510,122 (507,685) 4,002,437 Furniture & Equipment 2,466,383 128,802 2,595,185 1,552,663 101,302 1,653,965 $46,516,994 $862,506 $46,176,822 $27,976,757 $487,032 $28,463,789 Business - Type Activities Land $648,105 $648,105 Distributions System 46,335,020 $7,825,886 54,160,906 $18,009,378 $1,270,173 $19,279,551 Vehicles & Rolling Stock 3,216,054 (86,713) 3,129,341 2,477,426 75,472 2,552,898 Furniture & Equipment 1,579,009 166,587 1,745,596 947,082 75,263 1,022,345 $51,778,188 $7,905,760 $59,683,948 $21,433,886 $1,420,908 $22,854,794 For the fiscal year ended September 30, 2021, depreciation expense on capital assets was charged to the governmental functions in the City-wide statements as follows: General Government $35,716 Public Safety 152,226 Street 655,111 Cemetery 2,008 Airport 196,353 Library 3,359 Parks 167,791 $1,212,564 39 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 5. 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 $189,903 $43,364 $6,737 $50,054 $166,943 $457,001 Wages Payable 192,819 17,118 51,465 23,797 16,187 301,386 Prepaid employee tax and benefits (380,234) (380,234) Customer deposits 20,674 20,674 Golf Tournament Credits 39,334 39,334 $23,162 $60,482 $58,202 $113,185 $183,130 $438,161 Water Sewer Sanitation Fund Fund Fund Total Vendors payable $80,362 $595,707 $11,736 $687,805 Wages Payable 16,229 26,188 14,016 56,433 $96,591 $621,895 $25,752 $744,238 6. FINANCE LEASE During 2019, the City entered into a lease agreement with Zion’s Bank to finance a Fire Truck. It is being repaid over 6 years with interest at 3.38%. As of September 30, 2021, the annual requirements to amortize the debt are as follows: Payment 3.38% Date Amount Interest Principal Balance $139,237 Sep 2021 $21,298 $2,353 $18,945 120,292 Mar 2022 21,298 2,033 19,265 101,027 Sep 2022 21,298 1,708 19,590 81,437 Mar 2023 21,298 1,377 19,921 61,516 Sep 2023 21,298 1,040 20,258 41,258 Mar 2024 21,298 697 20,601 20,657 Sep 2024 21,298 641 20,657 0 $149,086 $9,849 $139,237 40 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 7. OPERATING LEASES The City leases it police vehicles instead of purchasing them. At the end of the vehicle’s 5-year lease term, the vehicle will be returned to the lessor. As of September 30, 2021, the City is leasing eleven police vehicles. The annual lease obligation on those vehicles is as follows: Description: 2020 Ford F150 XLT Super-Cab 4WD SWB Principal: $40,617.00 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,420.64 Initial Date: 1/31/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 1/31/2020 $40,617.00 $8,420.64 $0 $8,420.64 $32,196.36 2 1/31/2021 32,196.36 8,420.64 389.58 8,031.06 24,165.30 3 1/31/2022 24,165.30 8,420.64 292.40 8,128.24 16,037.06 4 1/31/2023 16,037.05 8,420.64 194.05 8,226.59 7,810.46 5 1/31/2024 7,810.46 7,904.96 94.51 7,810.45 0.00 Description: 2020 Dodge Durango Pursuit AWD Principal: $39,519.35 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,193.08 Initial Date: 1/31/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 1/31/2020 $39,519.35 $8,193.08 $0 $8,420.64 $31,098.71 2 1/31/2021 31,098.71 8,193.08 376.29 7,816.79 23,281.92 3 1/31/2022 23,281.92 8,193.08 281.71 7,911.37 15,370.56 4 1/31/2023 16,037.05 8,193.08 185.98 8,007.10 7,363.46 5 1/31/2024 7,363.46 7,452.56 89.10 7,363.46 0.00 41 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 7. OPERATING LEASES - (CONTINUED): Description: 2020 Dodge Durango Pursuit AWD Principal: $39,518.22 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,192.85 Initial Date: 1/31/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 1/31/2020 $39,518.22 $8,193.08 $0 $8,420.64 $31,097.58 2 1/31/2021 31,097.58 8,193.08 376.28 7,816.80 23,280.78 3 1/31/2022 23,280.78 8,193.08 281.70 7,911.38 15,369.40 4 1/31/2023 16,037.05 8,193.08 185.97 8,007.11 7,362.29 5 1/31/2024 7,362.29 7,451.37 89.08 7,362.29 0.00 Description: 2020 Dodge Durango Pursuit AWD Principal: $39,897.20 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,271.42 Initial Date: 3/31/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 3/31/2020 $39,897.20 $8,271.42 $0 $8,420.64 $31,476.56 2 3/31/2021 31,476.56 8,271.42 380.87 7,890.55 23,586.01 3 3/31/2022 23,586.01 8,271.42 285.39 7,986.03 15,599.98 4 3/31/2023 16,037.05 8,271.42 188.76 8,082.66 7,517.32 5 3/31/2024 7,517.32 7,608.28 90.96 7,517.32 0.00 Description: 2020 Dodge Durango Pursuit AWD Principal: $39,285.05 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,144.51 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 9/17/2020 $39,285.05 $8,144.51 $0 $8,420.64 $30,864.41 2 9/17/2021 30,864.41 8,144.51 373.46 7,771.05 23,093.36 3 9/17/2022 23,093.36 8,144.51 279.43 7,865.08 15,228.28 4 9/17/2023 16,037.05 8,144.51 184.26 7,960.25 7,268.03 5 9/17/2024 7,268.03 7,355.97 87.94 7,268.03 0.00 42 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 7. OPERATING LEASES - (CONTINUED): Description: 2020 Dodge Durango Pursuit AWD Principal: $39,285.0 5 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,144.51 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 9/17/2020 $39,285.05 $8,144.51 $0 $8,420.64 $30,864.41 2 9/17/2021 30,864.41 8,144.51 373.46 7,771.05 23,093.36 3 9/17/2022 23,093.36 8,144.51 279.43 7,865.08 15,228.28 4 9/17/2023 16,037.05 8,144.51 184.26 7,960.25 7,268.03 5 9/17/2024 7,268.03 7,355.97 87.94 7,268.03 0.00 Description: 2021 Dodge Durango Pursuit AWD Principal: $42,298.7 5 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,769.30 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 4/30/2021 $42,298.75 $8,769.30 $0 $8,420.64 $33,878.11 2 4/30/2022 33,878.11 8,769.30 409.93 8,359.37 25,518.74 3 4/30/2023 25,518.74 8,769.30 308.78 8,460.52 17,058.21 4 4/30/2024 16,037.05 8,769.30 206.40 8,562.90 8,495.32 5 4/30/2025 8,495.32 8,598.11 102.79 8,495.32 0.00 Description: 2021 Dodge Durango Pursuit AWD Principal: $42,298.7 5 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,769.30 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 4/30/2021 $42,298.75 $8,769.30 $0 $8,420.64 $33,878.11 2 4/30/2022 33,878.11 8,769.30 409.93 8,359.37 25,518.74 3 4/30/2023 25,518.74 8,769.30 308.78 8,460.52 17,058.21 4 4/30/2024 16,037.05 8,769.30 206.40 8,562.90 8,495.32 5 4/30/2025 8,495.32 8,598.11 102.79 8,495.32 0.00 43 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 7. OPERATING LEASES - (CONTINUED): Description: 2021 Dodge Durango Pursuit AWD Principal: $42,298.75 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,769.30 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 4/30/2021 $42,298.75 $8,769.30 $0 $8,420.64 $33,878.11 2 4/30/2022 33,878.11 8,769.30 409.93 8,359.37 25,518.74 3 4/30/2023 25,518.74 8,769.30 308.78 8,460.52 17,058.21 4 4/30/2024 16,037.05 8,769.30 206.40 8,562.90 8,495.32 5 4/30/2025 8,495.32 8,598.11 102.79 8,495.32 0.00 Description: 2021 Dodge Durango Pursuit AWD Principal: $42,298.75 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,769.30 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 4/30/2021 $42,298.75 $8,769.30 $0 $8,420.64 $33,878.11 2 4/30/2022 33,878.11 8,769.30 409.93 8,359.37 25,518.74 3 4/30/2023 25,518.74 8,769.30 308.78 8,460.52 17,058.21 4 4/30/2024 16,037.05 8,769.30 206.40 8,562.90 8,495.32 5 4/30/2025 8,495.32 8,598.11 102.79 8,495.32 0.00 Description: 2021 Dodge Durango Pursuit AWD Principal: $42,298.75 Number of Payments: 5 Annual Rate: 1.21% Annual Payment: $8,769.30 Initial Date: 9/17/2020 Beginning Ending Years: Date: Balance: Payment: Interest: Principal: Balance: 1 4/30/2021 $42,298.75 $8,769.30 $0 $8,420.64 $33,878.11 2 4/30/2022 33,878.11 8,769.30 409.93 8,359.37 25,518.74 3 4/30/2023 25,518.74 8,769.30 308.78 8,460.52 17,058.21 4 4/30/2024 16,037.05 8,769.30 206.40 8,562.90 8,495.32 5 4/30/2025 8,495.32 8,598.11 102.79 8,495.32 0.00 44 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 8. DEQ REVOLVING LOAN #WW 1501 During 2018, the City completed a waste water facilities upgrade. The project was funded by a loan from the US Department of Environmental Quality Idaho Revolving Loan Fund. As of September 30, 2021, the annual requirements to amortize the debt including interest are as follows: Sewer Revenue Bond Series 2018 2.75% Payment Interest Principal Balance $3,485,256 3/17/22 $129,128 $47,922 $81,206 3,404,050 9/17/22 129,128 46,806 82,322 3,321,728 3/17/23 129,128 45,674 83,454 3,238,274 9/17/23 129,128 44,526 84,602 3,153,672 3/17/24 129,128 43,363 85,765 3,067,907 9/17/24 129,128 42,184 86,944 2,980,963 3/17/25 129,128 40,988 88,140 2,892,823 9/17/25 129,128 39,776 89,352 2,803,471 3/17/26 129,128 38,548 90,580 2,712,891 9/17/26 129,128 37,302 91,826 2,621,065 3/17/27 129,128 36,040 93,088 2,527,977 9/17/27 129,128 34,760 94,368 2,433,609 3/17/28 129,128 33,462 95,666 2,337,943 9/17/28 129,128 32,147 96,981 2,240,962 3/17/29 129,128 30,813 98,315 2,142,647 9/17/29 129,128 29,461 99,667 2,042,980 3/17/30 129,128 28,091 101,037 1,941,943 9/17/30 129,128 26,702 102,426 1,839,517 3/17/31 129,128 25,293 103,835 1,735,682 9/17/31 129,128 23,866 105,262 1,630,420 3/17/32 129,128 22,418 106,710 1,523,710 9/17/32 129,128 20,951 108,177 1,415,533 3/17/33 129,128 19,464 109,664 1,305,869 9/17/33 129,128 17,956 111,172 1,194,697 3/17/34 129,128 16,427 112,701 1,081,996 9/17/34 129,128 14,877 114,251 967,745 3/17/35 129,128 13,306 115,821 851,924 9/17/35 129,128 11,714 117,414 734,510 3/17/36 129,128 10,100 119,028 615,481 9/17/36 129,128 8,463 120,665 494,816 3/17/37 129,128 6,804 122,324 372,492 9/17/37 129,128 5,122 124,006 248,486 3/17/38 129,128 3,417 125,711 122,774 9/17/38 124,463 1,688 122,775 45 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 9. DEQ REVOLVING LOAN #DW 1001 During 2012, the City completed a water facilities upgrade. The project was funded by a loan from the US Department of Environmental Quality Idaho Revolving Loan Fund. As of September 30, 2021, the annual requirements to amortize the debt including interest are as follows: Water Bond Series 2015 Payment 1.75% Date Amount Interest Principal Balance $2,308,721 3/11/22 $115,860 $20,201 $95,658 2,213,063 9/11/22 115,860 $19,364 $96,495 2,116,567 3/11/23 115,860 $18,520 $97,340 2,019,227 9/11/23 115,860 $17,668 $98,191 1,921,036 3/11/24 115,860 $16,809 $99,051 1,821,985 9/11/24 115,860 $15,942 $99,917 1,722,068 3/11/25 115,860 $15,068 $100,792 1,621,277 9/11/25 115,860 $14,186 $101,674 1,519,603 3/11/26 115,860 $13,297 $102,563 1,417,040 9/11/26 115,860 $12,399 $103,461 1,313,579 3/11/27 115,860 $11,494 $104,366 1,209,213 9/11/27 115,860 $10,581 $105,279 1,103,934 3/11/28 115,860 $9,659 $106,200 997,734 9/11/28 115,860 $8,730 $107,130 890,605 3/11/29 115,860 $7,793 $108,067 782,538 9/11/29 115,860 $6,847 $109,012 673,525 3/11/30 115,860 $5,893 $109,966 563,559 9/11/30 115,860 $4,931 $110,929 452,630 3/11/31 115,860 $3,961 $111,899 340,731 9/11/31 115,860 $2,981 $112,878 227,853 3/11/32 115,860 $1,994 $113,866 113,987 9/11/32 114,984 $997 $113,987 0 10. DEQ WASTE WATER LOAN # 1703. During fiscal year 2019, the City began drawing down on the DEQ Waste Water Loan #1703. As of September 30,2021, the City had drawn down $13,843,793. 46 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 During fiscal year 2021, BURA sold $1,814,887 in tax increment bonds to fund construction costs associated with the Downtown Districts Projects. These bonds will be repaid from future property tax revenues. As of September 30, 2021, the annual requirements to amortize this debt including interest are as follows: Series 2021 Payment 2.86% Total Debt Date Amount Interest Principal Service 3/1/22 $23,252.34 $23,252.34 9/1/22 $187,080.23 23,252.34 $163,827.89 187,080.23 3/1/23 20,909.60 20,909.60 9/1/23 189,422.97 20,909.60 168,513.37 189,422.97 3/1/24 18,499.86 18,499.86 9/1/24 191,832.71 18,499.86 173,332.85 191,832.71 3/1/25 16,021.20 16,021.20 9/1/25 194,311.37 16,021.20 178,290.17 194,311.37 3/1/26 13,471.65 13,471.65 9/1/26 196,860.92 13,471.65 183,389.27 196,860.92 3/1/27 18,849.18 18,849.18 9/1/27 199,483.39 10,849.18 188,634.21 199,483.39 3/1/28 8,151.71 8,151.71 9/1/28 202,180.86 8,151.71 194,029.15 202,180.86 3/1/29 5,377.10 5,377.10 9/1/29 204,955.47 5,377.10 199,578.37 204,955.47 3/1/30 2,523.13 2,523.13 9/1/30 178,965.50 2,523.13 176,442.37 178,965.50 $1,745,093.42 $246,111.54 $1,626,037.65 $1,872,149.19 11. 2021 BLACKFOOT URBAN RENEWAL TAX INCREMENT BONDS 47 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 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. As of September 30, 2021, 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, 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 $470,000.00 $90,625.00 $560,625.00 13. RESTRICTED CASH BURA - As per the terms of Tax Increment Bond Series 2021, BURA agreed to deposit $181,489 in a separate account, to remain on deposit until the Bonds are paid off. As BURA is in compliance with this bond requirements. CITY - As per the terms of Sewer Revenue Bond Series 2018, identified in the financial statements as DEQ loan WW 1501, the City agreed to deposit in a separate account an amount equal to one-tenth of an annual payment every year until the reserve equals the annual payment. As of September 30, 2021, the City has segregated $258,256 as restricted cash on d financial statements. 12. 2006 BLACKFOOT URBAN RENEWAL TAX INCREMENT BONDS 48 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 14. LONG-TERM DEBT The following is a summary of the City’s long-term debt transactions for the year ended September 30, 2021: Balance Incurred Satisfied Balance Amounts Due 10/1/2020 or issued or matured 9/30/2021 within one year Governmental Activities: Compensated absences $433,241 $84,848 $518,089 Operating lease payable 187,598 211,494 ($89,731) 309,361 $89,464 Finance lease contracts 157,867 (37,575) 120,292 38,855 City's share of unfunded PERSI 2,158,139 (2,220,482) (62,343) $2,936,845 $296,342 ($2,347,788) $885,399 $128,319 Business-type Activities: Compensated Absences $66,096 $11,657 $77,753 DEQ WWTP loan #1001 2,497,051 ($188,330) 2,308,721 $192,154 DEQ WWTP loan #1501 3,646,223 (160,967) 3,485,256 163,528 DEQ WWTP loan #1703 6,810,833 7,032,960 13,843,793 City's share of unfunded PERSI 359,986 (380,555) (20,569) $13,380,189 $7,044,617 ($729,852) $19,694,954 $355,682 Blackfoot Urban Renewal District: 2006 tax revenue bonds $0 $1,814,887 ($188,849) $1,626,038 $163,828 2021 tax revenue bonds 545,000 (75,000) 470,000 80,000 $545,000 $1,814,887 ($263,849) $2,096,038 $243,828 15. 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. 49 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 16. TRANSFERS BETWEEN FUNDS Administrative Charges: To From General Fund $779,238 Street Fund $74,692 Ambulance Fund $35,278 Airport Fund $23,122 Cemetery Fund $7,870 Library Fund $9,290 Water Fund $148,262 Sewer Fund $371,736 Sanitation fund $108,988 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. 50 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 18. EXCESS OF EXPENDITURES OVER APPROPRIATIONS The Ambulance Fund spent $63,065 more than was budgeted. Ambulance fund revenues exceeded budget amounts by $105,481. The Airport Fund spent $25,446 more than was budgeted. Airport fund revenues exceeded budget amounts by $41,212. The Capital Improvements fund spent $37,688 more than budgeted. Capital Improvement fund revenues exceed budget by $6,647. 19. DUE TO DUE FROM OTHER FUNDS As of September 30, 2021, the Capital Improvements Fund had a deficit cash balance of $53,868. That amount is reported as a liability “Due to Other Funds” on the Capital Improvements Fund Balance Sheet. That same amount is reported as an asset “Due from Other Funds” on the General Funds Balance Sheet. 20. 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. 51 ---PAGE BREAK--- CITY OF BLACKFOOT NOTES TO FINANCIAL STATEMENTS – (CONTINUED) SEPTEMBER 30, 2021 21. PUBLIC EMPLOYEE RETIREMENT SYSTEM Plan Description The City of Blackfoot, Idaho, (The City contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employers 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. 52 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2021 21. PUBLIC EMPLOYEE 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 at 60% of the employer rate for general employees and 74% for police and firefighters. As of June 30, 2021, it was 7.16% for general employees and 9.13% for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94% for general employees and 12.28% for police and firefighters. The City’s contributions were $467,791 for the PERSI year ended June 30, 2021. Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At September 30, 2021, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2021, 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, 2021, the City’s proportion was .1049837 percent. 53 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2021 21. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) For the year ended September 30, 2021, the City recognized pension income of $42,854. At September 30, 2021, 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 ($74,581) ($34,027) Changes in assumptions or other inputs $909,159 $0 Net difference between projected and actual earnings on pension plan investments $0 $2,604,262 Changes in the employer's proportion and differences between the employer's contributions and the employer's proportionate contributions $59,017 $254,884 Contributions subsequent to the measurement date $180,312 $0 Total $1,073,907 $2,825,119 $180,312 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, 2021. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2021, the beginning of the measurement period ended June 30, 2020 is 4.7 and 4.6 for the measurement period June 30, 2021. Other amounts, reported as deferred outflows of resources and deferred inflows of resources related to pensions, will be recognized in pension expense (revenue) as follows: Year ended September 30, 2021: 2022 ($371,328) 2023 ($334,642) 2024 ($292,439) 2025 ($580,141) 54 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2021 21. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level percentage of each year’s earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years. The total pension liability in the June 30, 2021 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation 2.30% Salary increases 3.05% Salary inflation 3.05% Investment rate of return 6.35%, net of investment expenses Cost-of-living adjustments 1% Contributing Members, Service Retirement Members, and Beneficiaries General Employees and All Beneficiaries – Males Pub-2010 General Tables, increased 11% General Employees and All Beneficiaries – Females Pub-2010 General Tables, increased 11% Teachers – Males Pub-2010 Teacher Tables, increased 21% Teachers – Females Pub-2010 Teacher Tables, increased 21% Fire & Police – Males Pub-2010 Safety Tables, increased 21% Fire & Police – Females Pub-2010 Safety Tables, increased 26% Disabled Members – Males Pub-2010 Disabled Tables, increased 38% Disabled Members – Females Pub-2010 Disabled Tables, increased 36% An experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all economic and demographic assumptions other than mortality. The Total Pension Liability as of June 30, 2021 is based on the results of an actuarial valuation date of July 1, 2021. 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. 55 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2021 21. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers, and trustees to develop capital market assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the current allocation of the System’s assets. The best-estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term real returns and reflecting expected volatility and correlation. The capital market assumptions are as of 2021. Capital Market Assumptions from Callen 2020 Long-term Expected Long-term Nominal Rate Expected Real Target of Return Rate of Return Asset Class Allocation (Arithmetic) (Arithmetic) Core Fixed Income 30.00% 1.80% (0.20%) Broad US Equities 55.00% 8.00% 6.00% Developed Foreign Equities 15.00% 8.25% 6.25% Assumed Inflation-Mean 2.00% 2.00% Assumed Inflation-Standard Deviation 1.50% 1.50% Portfolio Arithmetic Mean Return 6.18% 4.18% Portfolio Standard Deviation 12.29% 12.29% Portfolio Long-term (Geometric) Expected Rate of Return 5.55% 3.46% Assumed Investment Expenses 0.40% 0.40% Portfolio Long-term (Geometric) Expected Rate of Return, Net of Investment Expenses 5.15% 3.06% 56 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO NOTES TO FINANCIAL STATEMENTS – (CONTINUED) YEAR ENDED SEPTEMBER 30, 2021 21. PUBLIC EMPLOYEE RETIREMENT SYSTEM - (CONTINUED) Discount Rate The discount rate used to measure the total pension liability was 7.05%. 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 6.35 percent, as well as what the employer’s proportionate share of the net pension liability would be if it were calculated using a discount rate that is 1 percentage point lower (5.35 percent) or 1 percentage point higher (7.35 percent) than the current rate: Current 1% Decrease Discount Rate 1% Increase (5.35%) (6.35%) (7.35%) Employer's proportionate share of the net pension liability (asset) $2,882,264 ($82,914) ($2,513,530) 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. 57 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 58 ---PAGE BREAK--- REQUIRED SUPPLEMENTARY INFORMATION 59 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO REQUIRED SUPPLEMENTARY INFORMATION YEAR ENDED SEPTEMBER 30, 2021 Schedule of Employer's Share of Net Pension Liability PERSI - Base Plan Last 10 - Fiscal Years * 2021 2020 2019 Employer's portion of the net pension liability 0.104984% 0.108440% 0.117487% Employer's proportionate share of the net pension liability (Asset) ($82,914) $2,518,123 $1,341,079 Employer's covered-employee payroll $5,754,425 $5,336,476 $5,628,355 Employer's proportionate share of the net pension liability as a percentage of its covered-employee payroll -1.44% 47.19% 23.83% Plan fiduciary net pension as a percentage of the total pension liability 100.36% 88.22% 93.79% Schedule of Employer's Contributions PERSI - Base Plan Last 10 - Fiscal Years * 2021 2020 2019 Statutorialy required contribution $414,506 $425,455 $449,552 Contributions in relation to the statutorily required contribution $473,425 $466,984 $458,294 Contribution (deficiency) excess $58,920 $41,529 $8,742 Employer's covered-employee payroll $5,754,425 $5,336,476 $5,628,355 Contributions as a percentage of covered-employee payroll 7.20% 7.97% 7.99% *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 this information is available. Data reported is measured as of June 30, 2021 60 ---PAGE BREAK--- 2018 2017 2016 2015 0.122055% 0.127392% 0.123140% 0.123492% $1,800,331 $2,002,377 $2,496,227 $1,626,186 $5,696,820 $5,506,167 $5,166,140 $5,027,213 31.60% 36.37% 48.32% 32.35% 91.69% 90.68% 87.26% 91.38% 2018 2017 2016 2015 $473,990 $429,580 $366,047 $403,944 $450,552 $453,982 $413,269 $396,706 ($23,437) $24,402 $47,221 ($7,238) $5,696,820 $5,506,167 $5,166,140 $5,027,213 8.32% 7.80% 7.09% 8.04% 61 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL GENERAL FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance & Final Favorable Budget Actual (Unfavorable) REVENUE: Taxes: Property taxes $3,913,165 $3,889,846 ($23,319) Other taxes 2,689 2,689 Franchise taxes 124,115 105,099 (19,016) Subtotal Taxes: 4,037,280 3,997,634 (39,646) Licenses and Permits: Business licenses 17,001 18,882 1,881 Building permits 60,000 184,655 124,655 Plan review - State contract 20,000 64,464 44,464 Bicycle licenses 2 2 Subtotal Licenses and Permits: 97,001 268,003 171,002 Inter-governmental: Liquor apportionment 192,280 231,945 39,665 State revenue sharing 1,034,048 1,184,560 150,512 Blackfoot - Snake River Fire District 847,819 863,818 15,999 School resource officer 175,853 175,853 0 State, Federal, and local grants 131,000 542,388 411,388 Subtotal Intergovernmental: 2,381,000 2,998,564 617,564 Miscellaneous: Administrative charges 800,000 779,238 (20,762) Fines and forfeitures 50,827 57,169 6,342 Interest 75,737 26,062 (49,675) Other 5,590 52,339 46,749 Subtotal Miscellaneous: 932,154 914,808 (17,346) Total Revenue: 7,447,435 8,179,009 731,574 EXPENDITURES: Administrative: Salaries 454,008 409,817 44,191 Benefits 476,556 364,773 111,783 Travel and meeting 21,000 9,988 11,012 Office supplies and expense 172,357 154,202 18,155 The accompanying notes are an integral part of these statements. 62 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - (CONTINUED) GENERAL FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance EXPENDITURES: and Final Favorable Administrative - Continued: Budget Actual (Unfavorable) Maintenance $39,143 $21,096 $18,047 Utilities and telephone 19,460 13,321 6,139 Professional services 125,050 143,242 (18,192) Department supplies and other 118,501 28,135 90,366 Insurance 204,245 202,783 1,462 Covid 19 52,676 (52,676) Contingency 50,000 50,000 Subtotal Administrative: 1,680,320 1,400,033 280,287 Police: Salaries 1,753,472 1,826,134 (72,662) Benefits 902,403 864,572 37,831 Clothing allowance 18,000 6,817 11,183 Travel and training 28,000 12,898 15,102 Office supplies 33,842 16,903 16,939 Maintenance 43,000 40,150 2,850 Utilities and telephone 10,000 6,828 3,172 Fuel 57,000 62,452 (5,452) Professional services 2,500 1,712 788 Department supplies and other 70,500 40,136 30,364 Bingham County 288,679 286,526 2,153 Grants 5,000 5,000 Capital outlay 9,600 25,010 (15,410) Subtotal Police: 3,221,996 3,190,138 31,858 Fire: Salaries 1,081,650 1,132,236 (50,586) Benefits 598,509 531,945 66,564 Protective clothing 11,000 27,517 (16,517) Travel and training 9,500 3,900 5,600 Office supplies 15,442 13,392 2,050 Maintenance 32,800 65,326 (32,526) The accompanying notes are an integral part of these statements. 63 ---PAGE BREAK--- CITY OF BLACKFOOT STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL - (CONTINUED) GENERAL FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance EXPENDITURES: and Final Favorable Fire - Continued: Budget Actual (Unfavorable) Utilities and telephone $36,200 $24,386 $11,814 Fuel 10,000 10,566 (566) Professional services 7,300 8,762 (1,462) Department supplies and other 25,000 12,873 12,127 Debt Service interest 0 Grants 5,398 (5,398) Subtotal Fire: 1,827,401 1,836,301 (8,900) Building and Zoning: Salaries 98,142 97,838 304 Benefits 90,251 85,392 4,859 Travel and training 3,500 105 3,395 Office supplies 23,907 21,791 2,116 Utilities and telephone 1,920 1,930 (10) Professional services 5,000 9,463 (4,463) State building contract 60,000 159,483 (99,483) Grants 100,000 93,326 6,674 Subtotal Building and Zoning: 382,720 469,328 (86,608) Total Expenditures: 7,112,437 6,895,800 216,637 EXCESS REVENUE (EXPENDITURES): 334,998 1,283,209 948,211 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 335,000 0 (335,000) EXCESS REVENUE/SOURCES (EXPENDITURES/USES): $669,998 1,283,209 $613,211 FUND BALANCE - BEGINNING: 1,796,834 FUND BALANCE - ENDING: $3,080,043 The accompanying notes are an integral part of these statements. 64 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO STATEMENT OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL STREET FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $583,383 $589,793 $6,410 Highway users' tax 465,513 726,939 261,426 County road and street 66,780 35,293 (31,487) Franchise fees 85,798 66,854 (18,944) Federal and State grants 77,106 77,106 Miscellaneous 3,850 3,850 Interest on investments 2,457 2,457 Total Revenue: 1,201,474 1,502,292 300,818 EXPENDITURES: Salaries 324,235 308,386 15,849 Benefits 272,383 252,354 20,029 Clothing 5,600 951 4,649 Travel and training 1,500 1,500 Office supplies 5,692 6,020 (328) Maintenance 51,500 44,771 6,729 Utilities and telephone 172,150 145,122 27,028 Fuel 35,000 19,628 15,372 Professional services 5,625 4,230 1,395 Department supplies and other 119,650 75,729 43,921 Indirect cost reimbursement 78,393 74,693 0 Grant expense 1,000 49,696 (48,696) Construction materials 91,150 177,218 (86,068) Capital outlay 37,596 37,596 Total Expenditures: 1,201,474 1,158,798 38,976 EXCESS REVENUE (EXPENDITURES): 0 343,494 343,494 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 343,494 $343,494 FUND BALANCE - BEGINNING: 973,522 FUND BALANCE - ENDING: $1,317,016 The accompanying notes are an integral part of these statements. 65 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AMBULANCE FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Hospital collections - ambulance $761,751 $800,424 $38,673 County ambulance 671,958 703,515 31,557 Cares Act 14,196 14,196 Grants 21,000 21,000 Miscellaneous 55 55 Total Revenue: 1,433,709 1,539,190 105,481 EXPENDITURES: Salaries 718,767 809,039 (90,272) Benefits 428,662 411,363 17,299 Protective clothing 3,000 1,957 1,043 Travel and training 11,360 1,775 9,585 Office supplies 5,367 11,333 (5,966) Maintenance 29,000 29,906 (906) Utilities and telephone 5,000 4,259 741 Fuel 25,000 27,619 (2,619) Professional services 6,500 6,940 (440) Department supplies and other 35,000 34,296 704 Grant expense 22,118 (22,118) Indirect cost reimbursement 51,674 35,278 16,396 Collection expense and refunds 61,000 69,630 (8,630) Capital outlay 53,379 53,379 0 Total Expenditures: 1,433,709 1,518,892 (85,183) EXCESS REVENUE (EXPENDITURES): 0 20,298 20,298 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 20,298 $20,298 FUND BALANCE - BEGINNING: 90,018 FUND BALANCE - ENDING: $110,316 The accompanying notes are an integral part of these statements. 66 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL PARKS AND RECREATION FUND YEAR ENDED SEPTEMBER 30, 2021 Original & Variance Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $220,820 $223,895 $3,075 County participation 20,000 21,500 1,500 Golf course 575,232 748,532 173,300 Park reservation fees and donations 25,182 38,597 13,415 Recreation fees and donations 33,675 30,250 (3,425) Storm water maintenance fee 28,000 (28,000) Interest on investments 1,132 1,132 Other 575 27,975 27,400 Total Revenue: 903,484 1,091,881 188,397 EXPENDITURES (Parks): Salaries 144,211 136,638 7,573 Benefits 51,263 40,362 10,901 Clothing allowance 1,550 312 1,238 Travel and training 2,000 2,000 Office supplies 5,759 3,292 2,467 Maintenance 146,700 60,500 86,200 Utilities and telephone 26,000 19,305 6,695 Fuel 25,000 12,025 12,975 Professional services 26,000 1,772 24,228 Department supplies and other 38,150 16,245 21,905 Capital outlay 6,746 (6,746) Total Expenditures (Parks): 466,633 297,197 169,436 EXPENDITURES (Recreation): Salaries 11,063 (11,063) Benefits 1,267 (1,267) Total Expenditures (Recreation): 0 12,330 (12,330) The accompanying notes are an integral part of these statements. 67 ---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, 2021 Variance Final Favorable Budget Actual (Unfavorable) EXPENDITURES (Pool): Maintenance $3,000 $3,000 Professional services $4,800 (4,800) Utilities and telephone 7,000 3,547 3,453 Total Expenditures (Pool): 10,000 8,347 1,653 EXPENDITURES (Golf): Salaries 293,373 277,266 16,107 Benefits 184,230 164,412 19,818 Clothing allowance 1,250 266 984 Travel and training 3,000 3,000 Office supplies 19,059 13,550 5,509 Maintenance 88,000 81,253 6,747 Utilities and telephone 29,500 37,701 (8,201) Fuel 6,500 14,826 (8,326) Professional services 750 594 156 Resale items 95,000 157,799 (62,799) Department supplies and other 34,600 39,452 (4,852) Capital outlay 7,000 7,000 0 Total Expenditures (Golf): 762,262 794,119 (31,857) Total Fund Expenditures: 1,238,895 1,111,993 126,902 EXCESS REVENUE (EXPENDITURES): (335,411) (20,112) 315,299 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 335,381 0 (335,381) EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($30) (20,112) ($20,082) FUND BALANCE - BEGINNING: 94,381 FUND BALANCE - ENDING: $74,269 The accompanying notes are an integral part of these statements. 68 ---PAGE BREAK--- BLACKFOOT URBAN RENEWAL AGENCY SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES BUDGET AND ACTUAL YEAR ENDED SEPTEMBER 30, 2021 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $750,000 $986,409 $236,409 Investment income 10,000 4,331 (5,669) Grant application fees 75 75 2021 Revenue Bond proceeds 1,814,887 1,814,887 Total Revenue: 760,000 2,805,702 2,045,702 EXPENDITURES: Administration 4,000 1,088 2,912 Professional fees 16,000 48,353 (32,353) Projects: Downtown District: Barbecue Pit - Transtrum 54,488 (54,488) Economic development projects 1,800,000 1,800,000 Façade improvements 60,000 44,826 15,174 Donnie Wixom Bridge Street Bldg 600 (600) Maple Street - Mickelsen Bldg 57,000 (57,000) Michael Johnson - Perfect point 590,000 (590,000) Oleson Convention Center 9,882 (9,882) Potato Expo 32,400 (32,400) Teton House 500,000 (500,000) 2021 Revenue Bond payment 212,333 (212,333) Riverview District: Land Purchase loan 20,000 20,000 0 Façade improvements 100,000 100,000 Tax anticipation note 123,305 123,305 2006 Revenue Bond payment 111,794 (111,794) Total Expenditures: 2,123,305 1,682,764 440,541 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($1,363,305) 1,122,938 $2,486,243 FUND BALANCE - BEGINNING: 1,429,646 FUND BALANCE - ENDING: $2,552,584 The accompanying notes are an integral part of these statements. 69 ---PAGE BREAK--- THIS PAGE INTENTIONALLY LEFT BLANK 70 ---PAGE BREAK--- OTHER SUPPLEMENTAL INFORMATION 71 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO COMBINING BALANCE SHEET NON-MAJOR GOVERNMENTAL FUNDS SEPTEMBER 30, 2021 Capital Airport Cemetery Library Improvements Fund Fund Fund Fund ASSETS: Cash and investments $331,658 $239,014 $565,595 Receivables: Property taxes 2,124 3,768 6,073 $2,955 Total Assets: $333,782 $242,782 $571,668 $2,955 LIABILITIES: Accounts payable $51,173 $7,332 $124,485 $140 Due to other funds 53,868 Total Liabilities: 51,173 7,332 124,485 54,008 DEFERRED INFLOW OF RESOURCES Unavailable revenue - Property taxes 1,894 3,384 5,454 2,642 FUND BALANCE: Assigned - Capital Improvements 389,087 Unassigned 280,715 232,066 52,642 (53,695) Total Fund Balance: 280,715 232,066 441,729 (53,695) Total Liabilities and Fund Balance: $333,782 $242,782 $571,668 $2,955 72 ---PAGE BREAK--- Health Total Care Non-major Reserve Governmental Fund Funds $499,538 $1,635,805 14,920 $499,538 $1,650,725 $183,130 53,868 $0 236,998 13,374 389,087 499,538 1,011,266 499,538 1,400,353 $499,538 $1,650,725 73 ---PAGE BREAK--- Capital Airport Cemetery Library Improvements REVENUES: Fund Fund Fund Fund Property taxes $81,340 $148,727 $239,811 $101,917 Fees 88,767 74,325 10,006 Grants and contributions 35,735 12,375 4,107 Blackfoot Rural Library District 236,510 Interest 470 752 1,214 623 Miscellaneous 1,537 150 Total Revenues: 207,849 223,954 499,916 106,647 EXPENDITURES: General government 172,254 18,220 Airport 212,083 Library 387,948 Capital outlay 136,826 119,468 Total Expenditures: 212,083 172,254 524,774 137,688 EXCESS REVENUE (EXPENDITURES): (4,234) 51,700 (24,858) (31,041) OTHER FINANCING SOURCES (USES): Operating transfers (to) from other funds 0 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): (4,234) 51,700 (24,858) (31,041) FUND BALANCE - BEGINNING: 284,949 180,366 466,587 (22,654) FUND BALANCE - ENDING: $280,715 $232,066 $441,729 ($53,695) CITY OF BLACKFOOT, IDAHO COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES NON-MAJOR GOVERNMENTAL FUNDS YEAR ENDED SEPTEMBER 30, 2021 74 ---PAGE BREAK--- Health Total Care Non-major Reserve Governmental Fund Funds $571,795 $64,100 237,198 52,217 236,510 3,059 1,687 64,100 1,102,466 104,726 295,200 212,083 387,948 256,294 104,726 1,151,525 (40,626) (49,059) 0 (40,626) (49,059) 540,164 1,449,412 $499,538 $1,400,353 75 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL AIRPORT FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $80,000 $81,340 $1,340 Charges for services 35,050 43,934 8,884 Fuel 50,000 44,833 (5,167) Miscellaneous 87 1,537 1,450 Grants and contributions 1,500 35,735 34,235 Interest on investments 470 470 Total Revenue: 166,637 207,849 41,212 EXPENDITURES: Salaries 7,594 7,406 188 Benefits 8,637 8,115 522 Office supplies 1,217 3,479 (2,262) Maintenance 23,100 11,172 11,928 Utilities and telephone 11,200 6,034 5,166 Fuel 50,250 94,080 (43,830) Professional services 10,136 13,383 (3,247) Department supplies and other 2,500 2,500 Indirect cost reimbursement 18,189 23,122 (4,933) Grant expense 33,814 45,292 (11,478) Capital Outlay 20,000 20,000 Total Expenditures: 186,637 212,083 (25,446) EXCESS REVENUE (EXPENDITURES): (20,000) (4,234) 15,766 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($20,000) (4,234) $15,766 FUND BALANCE - BEGINNING: 284,949 FUND BALANCE - ENDING: $280,715 76 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CEMETERY FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $146,683 $148,727 $2,044 Charges for services 54,193 74,325 20,132 Miscellaneous 150 150 Interest on investments 752 752 Total Revenue: 200,876 223,954 23,078 EXPENDITURES: Salaries 90,145 77,533 12,612 Benefits 65,252 55,380 9,872 Office supplies 2,687 2,839 (152) Travel and training 800 800 Maintenance 20,000 18,159 1,841 Utilities and telephone 6,950 4,700 2,250 Fuel 1,000 1,619 (619) Professional services 5,000 2,294 2,706 Department supplies and other 5,700 1,860 3,840 Indirect cost reimbursement 7,870 7,870 0 Capital outlay 100,000 100,000 Total Expenditures: 305,404 172,254 133,150 EXCESS REVENUE (EXPENDITURES): (104,528) 51,700 156,228 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($104,528) 51,700 $156,228 FUND BALANCE - BEGINNING: 180,366 FUND BALANCE - ENDING: $232,066 77 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL LIBRARY FUND YEAR ENDED SEPTEMBER 30, 2021 Original Variance and Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $236,510 $239,811 $3,301 Charges for services 15,804 10,006 (5,798) Blackfoot Rural Library District 236,510 236,510 0 Interest on investments 1,214 1,214 Grants and contributions 12,375 12,375 Total Revenue: 488,824 499,916 11,092 EXPENDITURES: Salaries 207,187 182,274 24,913 Benefits 80,706 73,322 7,384 Books and subscriptions 90,119 70,709 19,410 Travel and training 1,500 591 909 Office supplies 17,550 18,045 (495) Maintenance 20,600 11,755 8,845 Utilities and telephone 13,220 9,027 4,193 Professional services 6,800 3,849 2,951 Department supplies and other 16,250 8,572 7,678 Indirect cost reimbursement 9,290 9,290 0 Grant expense 514 (514) Capial outlay 225,600 136,826 88,774 Total Expenditures: 688,822 524,774 164,048 EXCESS REVENUE (EXPENDITURES): (199,998) (24,858) 175,140 OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): ($199,998) (24,858) $175,140 FUND BALANCE - BEGINNING: 466,587 FUND BALANCE - ENDING: $441,729 78 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL CAPITAL IMPROVEMENTS FUND YEAR ENDED SEPTEMBER 30, 2021 Original & Variance Final Favorable Budget Actual (Unfavorable) REVENUE: Property taxes $100,000 $101,917 $1,917 Grants 4,107 4,107 Interest on investments 623 623 Total Revenue: $100,000 106,647 6,647 EXPENDITURES: Professional services 3,771 (3,771) Grant expense 14,449 (14,449) Capital outlay 100,000 119,468 (19,468) Total Expenditures: 100,000 137,688 (37,688) EXCESS REVENUE (EXPENDITURES): 0 (31,041) (31,041) OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 (31,041) ($31,041) FUND BALANCE - BEGINNING: (22,654) FUND BALANCE - ENDING: ($53,695) 79 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO SCHEDULE OF REVENUE, EXPENDITURES, AND CHANGES IN FUND BALANCE BUDGET AND ACTUAL HEALTH CARE RESERVE FUND YEAR ENDED SEPTEMBER 30, 2021 Original & Variance Final Favorable Budget Actual (Unfavorable) REVENUE: Reserve receipts $140,000 $64,100 ($75,900) Total Revenue: 140,000 64,100 (75,900) EXPENDITURES: Healthcare expense 100,000 86,456 13,544 Flex spending expense 20,000 5,027 14,973 Benefits administration 20,000 13,243 6,757 Total Expenditures: 140,000 104,726 35,274 EXCESS REVENUE (EXPENDITURES): 0 (40,626) (40,626) OTHER FINANCING SOURCES (USES): Transfers (to) from other funds 0 0 0 EXCESS REVENUE/SOURCES OR (EXPENDITURES/USES): $0 (40,626) ($40,626) FUND BALANCE - BEGINNING: 540,164 FUND BALANCE - ENDING: $499,538 80 ---PAGE BREAK--- SINGLE AUDIT SECTION 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 (The City) compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of the City’s major Federal programs for the year ended September 30, 2021. The City’s major Federal programs are identified in the summary of auditor’s results section of the accompanying Schedule of Findings and Questioned costs. Management’s Responsibility Management is responsible for compliance with Federal statutes, regulations, and the terms and conditions of its Federal awards 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 noncompliance 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. 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, 2021. 82 ---PAGE BREAK--- Honorable Mayor and Members of the City Council City of Blackfoot, Idaho Page 2 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 our 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 noncompliance with a type of compliance requirement of a Federal program on a timely basis. A material weakness in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a Federal program will not be prevented or detected and corrected on a timely basis. A significant deficiency in internal control over compliance is a deficiency or a combination of deficiencies in internal control over compliance with a type of compliance requirement of a Federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. 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 my testing of internal control over compliance and the results of that testing based on the requirements of the Uniform Guidance. Accordingly, this report is not suitable for any other purpose. Pocatello, Idaho January 24, 2022 Morgan J Hatt CPA PC 83 ---PAGE BREAK--- CITY OF BLACKFOOT, IDAHO BLACKFOOT, IDAHO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS YEAR ENDED SEPTEMBER 30, 2021 Catalogue of Federal Domestic Title Assistance Number Expenditures Department of Defense: Army Corp of Engineers - Waste Water Treatment facilities (Direct Funding) 12.000 $783,119 Department of Housing and Urban Development: Community Development Block Grant -Waste Water Improvement (State of Idaho pass-through funding) 14.228 $2,500 Department of Transportation : Airport Improvement - (Direct funding) 20.106 $33,991 Highway Planning & Construction (State of Idaho pass-through funding) 20.205 $3,500 State Community Highway Safety (State of Idaho pass-through funding) 20.600 $9,525 National Priority Safety Program (State of Idaho pass-through funding) 20.616 $1,341 Subtotal of Department of Transportation: $48,357 Department of the Treasury: Cares Act (State of Idaho pass-through funding) 21.019 $160,795 Environmental Protection Agency: Capitalization grants and revolving loans WW 1703 (State of Idaho pass-through funding) 66.468 $6,978,309 Department of Health and Human Services: Substance Abuse and Mental Health Services (State of Idaho pass-through funding) 93.243 $36,472 Total Federal Expenditures: $8,009,552 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, 2021. 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). The July 2021 Compliance Supplement was used to audit major programs. 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 position, 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 recognized 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: Unqualified 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 Identification of Major programs: CFDA Number(s) Name of Federal Program 12.000 Waste Water Treatment Facilities 66.458 Capitalization Grants & Revolving Loans Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? Yes 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, 2021 85