Finance - Annual Audit - 09/30/2019
City of Eagle, Idaho
Year Ended September 30, 2019
CITY OF EAGLE, IDAHO
Table of Contents
i
Financial Section
Independent Auditor's Report ..........................................................................................................
1
Basic Financial Statements
Government-Wide Financial Statements
Statement of Net Position ................................................................................................................
4
Statement of Activities ....................................................................................................................
5
Fund Financial Statements
Balance Sheet – Governmental Funds .............................................................................................
6
Statement of Revenues, Expenditures, and Changes in Fund Balances – Governmental Funds .....
9
Statement of Net Position – Proprietary Funds ...............................................................................
12
Statement of Revenues, Expenses, and Changes in Net Position – Proprietary Funds ...................
13
Statement of Cash Flows – Proprietary Funds ................................................................................
14
Notes to Financial Statements .........................................................................................................
15
Required Supplementary Information
Budgetary Comparison Schedule – General and Major Special Revenue Funds ............................
29
Schedule of Employer’s Share of Net Pension Liability .................................................................
31
Schedule of Employer Contributions ...............................................................................................
32
Supplementary Information
Combining Balance Sheet – Nonmajor Governmental Funds .........................................................
33
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances – Nonmajor
Governmental Funds ........................................................................................................................
34
Other Reports
Independent Auditor’s Report on Internal Control Over Financial Reporting and on Compliance
and Other Matters Based on an Audit of the Financial Statements Performed in Accordance with
Government Auditing Standards......................................................................................................
35
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Independent Auditor’s Report
Honorable Mayor and City Council
City of Eagle, Idaho
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, each major fund, and the aggregate remaining fund information of the City of Eagle, Idaho (the
City) as of and for the year ended September 30, 2019, 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
Our responsibility is to express opinions on these financial statements based on our audit. We conducted
our audit in accordance with auditing standards generally accepted in the United States of America and the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States. Those standards require that we plan and perform the audit to
obtain reasonable assurance about whether the financial statements are free of material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the
financial statements. The procedures selected depend on the auditor’s judgment, including the assessment
of the risks of material misstatement of the financial statements, whether due to fraud or error. In making
those risk assessments, the auditor considers internal control relevant to the entity’s preparation and fair
presentation of the financial statements in order to design audit procedures that are appropriate in the
circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity’s internal
control. Accordingly, we 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.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
audit opinions.
2
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, each major fund,
and the aggregate remaining fund information of the City as of September 30, 2019, 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
Accounting principles generally accepted in the United States of America require that the budgetary
comparison schedules, schedule of employer’s share of net pension liability, and schedule of employer
contributions listed as required supplementary information in the table of contents be presented to
supplement the basic financial statements. Such information, although not required to be 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, and historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management’s responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Management has not included the management’s discussion and analysis information that accounting
principles generally accepted in the United States of America require to be presented to supplement the
basic financial statements. Such information, although not part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, and historical
context. Our opinion on the basic financial statements is not affected by not including this information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying combining and individual nonmajor fund
financial statements are presented for purposes of additional analysis and are not a required part of the basic
financial statements.
The combining and individual nonmajor fund financial statements 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 the basic financial statements themselves, and other additional procedures in
accordance with auditing standards generally accepted in the United States of America. In our opinion, the
combining and individual nonmajor fund financial statements are fairly stated in all material respects in
relation to the basic financial statements as a whole.
3
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January 6, 2020,
on our consideration of the City's internal control over financial reporting and on our tests of its compliance
with certain provisions of laws, regulations, contracts, grant agreements and other matters. The purpose of
that report is to describe the scope of our testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over financial reporting
or on compliance. That report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Quest CPAs PLLC
Payette, Idaho
January 6, 2020
CITY OF EAGLE, IDAHO
Statement of Net Position
September 30, 2019
Governmental Business-Type
Activities Activities Total
Assets
Current Assets
Cash $10,322,478 $1,679,904 $12,002,382
Receivables:
Taxes 20,198 20,198
Intergovernmental 824,186 824,186
Accounts 199,908 102,759 302,667
Total Current Assets 11,366,770 1,782,663 13,149,433
Noncurrent Assets
Restricted Cash 745,229 1,787,354 2,532,583
Nondepreciable Capital Assets 6,547,735 93,250 6,640,985
Depreciable Net Capital Assets 10,815,220 7,260,449 18,075,669
Total Noncurrent Assets 18,108,184 9,141,053 27,249,237
Total Assets 29,474,954 10,923,716 40,398,670
Deferred Outflows of Resources
Pension Deferred Outflows 185,123 20,212 205,335
Total Deferred Outflows of Resources 185,123 20,212 205,335
Total Assets and Deferred Outflows
of Resources $29,660,077 $10,943,928 $40,604,005
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses $1,068,529 $64,032 $1,132,561
Deposits Payable 745,229 77,775 823,004
Accrued Interest 22,747 22,747
Long-Term Debt & Obligations, Current 232,737 143,917 376,654
Total Current Liabilities 2,046,495 308,471 2,354,966
Noncurrent Liabilities
Long-Term Debt & Obligations, Noncurrent 576,460 1,551,466 2,127,926
Net Pension Liability 771,203 89,702 860,905
Total Noncurrent Liabilities 1,347,663 1,641,168 2,988,831
Total Liabilities 3,394,158 1,949,639 5,343,797
Deferred Inflows of Resources
Pension Deferred Inflows 351,647 43,100 394,747
Total Deferred Inflows of Resources 351,647 43,100 394,747
Total Liabilities and Deferred Inflows
of Resources 3,745,805 1,992,739 5,738,544
Net Position
Net Investment in Capital Assets 16,701,204 5,651,208 22,352,412
Restricted - Special Programs 795,955 795,955
Restricted - Debt Service 3,255 181,836 185,091
Restricted - Capital Projects 4,798,540 1,527,743 6,326,283
Unrestricted 3,615,318 1,590,402 5,205,720
Total Net Position 25,914,272 8,951,189 34,865,461
Total Liabilities and Deferred Inflows
of Resources and Net Position $29,660,077 $10,943,928 $40,604,005
See Accompanying Notes 4
CITY OF EAGLE, IDAHO
Statement of Activities
Year Ended September 30, 2019
Operating Capital
Charges For Grants And Grants And Net (Expense)
Functions/Programs Expenses Services Contributions Contributions Revenue
Governmental Activities
Current Expenditures
General Government $3,820,649 $2,106,954 $9,075 ($1,704,620)
Public Safety 2,755,032 1,519,304 (1,235,728)
Parks & Streets 1,855,437 1,023,209 $503,547 (328,681)
Culture & Recreation 1,340,052 738,991 (601,061)
Debt Service - Interest 22,764 (22,764)
Capital Assets 625,845 (625,845)
Total Governmental Activities 10,419,779 5,388,458 9,075 503,547 (4,518,699)
Business-Type Activities
Water Services 1,011,057 2,298,130 774,520 2,061,593
Total Business-Type Activities 1,011,057 2,298,130 0 774,520 2,061,593
Total $11,430,836 $7,686,588 $9,075 $1,278,067 ($2,457,106)
Governmental Business-Type
Changes in Net Position Activities Activities Total
Net (Expense) Revenue ($4,518,699) $2,061,593 ($2,457,106)
General Revenues
Taxes 3,507,107 3,507,107
Franchise Fees 782,678 782,678
Intergovernmental 2,926,647 2,926,647
Interest 21,472 6,996 28,468
Miscellaneous 321,546 321,546
Pension Revenue (Expense) (293,437) (33,277) (326,714)
Total 7,266,013 (26,281) 7,239,732
Change in Net Position 2,747,314 2,035,312 4,782,626
Net Position - Beginning 23,166,958 6,915,877 30,082,835
Net Position - Ending $25,914,272 $8,951,189 $34,865,461
Program Revenues
See Accompanying Notes 5
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2019
Page 1 of 3
Debt
General Library Service Park
Fund Fund Fund Fund
Assets
Cash $4,752,461 $633,522 $3,255 $2,269,189
Receivables:
Taxes 12,005 8,193
Intergovernmental 824,186
Accounts 196,486 1,872
Due From Other Funds
Restricted Cash 745,229
Total Assets $6,530,367 $643,587 $3,255 $2,269,189
Liabilities
Accounts Payable & Accrued Expenses $906,193 $36,086
Due To Other Funds
Deposits Payable 745,229
Total Liabilities 1,651,422 36,086 $0 $0
Deferred Inflows of Resources
Unavailable Tax Revenues 11,741 8,010
Total Deferred Inflows of Resources 11,741 8,010 0 0
Fund Balances
Restricted - Special Programs 186,464 599,491
Restricted - Debt Service 3,255
Restricted - Capital Projects 2,269,189
Unassigned 4,680,740
Total Fund Balances 4,867,204 599,491 3,255 2,269,189
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $6,530,367 $643,587 $3,255 $2,269,189
See Accompanying Notes 6
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2019
Page 2 of 3
Capital Other Total
Projects Governmental Governmental
Fund Funds Funds
Assets
Cash $2,122,371 $541,680 $10,322,478
Receivables:
Taxes 0 20,198
Intergovernmental 0 824,186
Accounts 1,550 199,908
Due From Other Funds 00
Restricted Cash 0 745,229
Total Assets $2,122,371 $543,230 $12,111,999
Liabilities
Accounts Payable & Accrued Expenses $126,250 $0 $1,068,529
Due To Other Funds 00
Deposits Payable 0 745,229
Total Liabilities 126,250 0 1,813,758
Deferred Inflows of Resources
Unavailable Tax Revenues 0 19,751
Total Deferred Inflows of Resources 0 0 19,751
Fund Balances
Restricted - Special Programs 10,000 795,955
Restricted - Debt Service 0 3,255
Restricted - Capital Projects 1,996,121 533,230 4,798,540
Unassigned 0 4,680,740
Total Fund Balances 1,996,121 543,230 10,278,490
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $2,122,371 $543,230 $12,111,999
See Accompanying Notes 7
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2019
Page 3 of 3
Reconciliation of Total Governmental Fund Balances to Net Position
of Governmental Activities
Total Governmental Fund Balances $10,278,490
Amounts reported for governmental activities in the statement of net
position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.17,362,955
Certain receivables are not available to pay for current period
expenditures and therefore are deferred in the funds.19,751
Certain liabilities are not due and payable in the current period and
therefore are not reported in the funds.(809,197)
Net pension liability and related pension source deferred outflow and
deferred inflow of resources, are not due and payable in the current
period and therefore are not reported in the funds.(937,727)
Net Position of Governmental Activities $25,914,272
See Accompanying Notes 8
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2019
Page 1 of 3
Debt
General Library Service Park
Fund Fund Fund Fund
Revenues
Taxes $2,075,163 $1,436,110
Franchise Fees 782,678
Intergovernmental 2,926,647
Licenses, Permits, & Fees 4,043,308 15,945 $1,024,231
Interest 13,194 1,394 5,781
Miscellaneous & Grants 127,415 2,290
Total Revenues 9,968,405 1,455,739 $0 1,030,012
Expenditures
Current Expenditures
General Government 3,902,298
Public Safety 2,820,452
Parks & Streets 1,897,171 2,325
Culture & Recreation 167,494 1,204,377
Capital Outlay 1,168,233 192,746 851,597
Debt Service - Principal 70,000
Debt Service - Interest 33,055
Total Expenditures 9,955,648 1,397,123 103,055 853,922
Excess (Deficiency) of Revenues
Over Expenditures 12,757 58,616 (103,055) 176,090
Other Financing Sources (Uses)
Owner Contributions
Transfers In 103,200
Transfers Out (1,453,831)
Total Other Financing Sources (Uses)(1,453,831) 0 103,200 0
Net Change in Fund Balances (1,441,074) 58,616 145 176,090
Fund Balances - Beginning 6,308,278 540,875 3,110 2,093,099
Fund Balances - Ending $4,867,204 $599,491 $3,255 $2,269,189
See Accompanying Notes 9
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2019
Page 2 of 3
Capital Other Total
Projects Governmental Governmental
Fund Funds Funds
Revenues
Taxes $0 $3,511,273
Franchise Fees 0 782,678
Intergovernmental 0 2,926,647
Licenses, Permits, & Fees 304,974 5,388,458
Interest $1,103 0 21,472
Miscellaneous & Grants 725,085 800 855,590
Total Revenues 726,188 305,774 13,486,118
Expenditures
Current Expenditures
General Government 9,075 3,911,373
Public Safety 0 2,820,452
Parks & Streets 0 1,899,496
Culture & Recreation 0 1,371,871
Capital Outlay 842,406 37,978 3,092,960
Debt Service - Principal 0 70,000
Debt Service - Interest 0 33,055
Total Expenditures 842,406 47,053 13,199,207
Excess (Deficiency) of Revenues
Over Expenditures (116,218) 258,721 286,911
Other Financing Sources (Uses)
Owner Contributions 9,075 9,075
Transfers In 1,350,631 0 1,453,831
Transfers Out 0 (1,453,831)
Total Other Financing Sources (Uses)1,350,631 9,075 9,075
Net Change in Fund Balances 1,234,413 267,796 295,986
Fund Balances - Beginning 761,708 275,434 9,982,504
Fund Balances - Ending $1,996,121 $543,230 $10,278,490
See Accompanying Notes 10
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2019
Page 3 of 3
Reconciliation of the Statement of Revenues, Expenditures, and
Changes in Fund Balances - Governmental Funds to the Statement of
Activities
Net Change in Fund Balances - Total Governmental Funds $295,986
Amounts reported for governmental activities in the statement of
activities are different because:
Government funds report capital outlays as expenditures. However, in
the statement of activities the cost of those assets is allocated over their
estimated useful lives as depreciation expense. This is the excess of
capital outlays over (under) depreciation expense in the current period.2,436,617
Revenues in the statement of activities that do not provide current
financial resources are deferred in the funds.(4,166)
Repayment of debt principal is an expenditure in the governmental
funds, but the repayment reduces long-term debt in the statement of net
position.70,000
Bond premiums are amortized against interest expense over the term of
the bond.10,291
In the statement of activities, compensated absences are accrued when
earned, but the expenditure is reported when due in the governmental
funds.(32,857)
Changes in net pension liability and related pension source deferred
outflow and deferred inflow of resources do not provide or require
current financial resources and therefore are not reflected in the funds.(28,557)
Change in Net Position of Governmental Activities $2,747,314
See Accompanying Notes 11
CITY OF EAGLE, IDAHO
Statement of Net Position - Proprietary Fund
September 30, 2019
Water
Fund
Assets
Current Assets
Cash $1,679,904
Receivables:
Accounts 102,759
Total Current Assets 1,782,663
Noncurrent Assets
Restricted Cash 1,787,354
Nondepreciable Capital Assets 93,250
Depreciable Net Capital Assets 7,260,449
Total Noncurrent Assets 9,141,053
Total Assets 10,923,716
Deferred Outflows of Resources
Pension Deferred Outflows 20,212
Total Deferred Outflows of Resources 20,212
Total Assets and Deferred Outflows of Resources $10,943,928
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses $64,032
Deposits Payable 77,775
Accrued Interest 22,747
Long-Term Debt & Obligations, Current 143,917
Total Current Liabilities 308,471
Noncurrent Liabilities
Long-Term Debt & Obligations, Noncurrent 1,551,466
Net Pension Liability 89,702
Total Noncurrent Liabilities 1,641,168
Total Liabilities 1,949,639
Deferred Inflows of Resources
Pension Deferred Inflows 43,100
Total Deferred Inflows of Resources 43,100
Total Liabilities and Deferred Inflows of Resources 1,992,739
Net Position
Net Investment in Capital Assets 5,651,208
Restricted - Debt Service 181,836
Restricted - Capital Projects 1,527,743
Unrestricted 1,590,402
Total Net Position 8,951,189
Total Liabilities and Deferred Inflows of Resources and Net Position $10,943,928
See Accompanying Notes 12
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund
Year Ended September 30, 2019
Water
Fund
Operating Revenues
Service Fees $1,145,283
STL & WCE Fees 866,274
Hook-Up Fees 275,225
Miscellaneous 11,348
Total Operating Revenues 2,298,130
Operating Expenses
Personnel 371,701
Operations & Maintenance 177,633
Depreciation 405,060
Total Operating Expenses 954,394
Operating Income (Loss)1,343,736
Nonoperating Revenues (Expenses)
Interest Income 6,996
Interest Expense (56,663)
Pension Revenue (Expense) (33,277)
Total Nonoperating Revenue (Expenses)(82,944)
Income (Loss) Before Contributions 1,260,792
Capital Contributions 774,520
Change in Net Position 2,035,312
Net Position - Beginning 6,915,877
Net Position - Ending $8,951,189
See Accompanying Notes 13
CITY OF EAGLE, IDAHO
Statement of Cash Flows - Proprietary Fund
Year Ended September 30, 2019
Water
Fund
Cash Flows From Operations
Receipts from Customers $2,289,228
Payments for Personnel (401,740)
Payments for Goods & Services (177,849)
Cash Provided (Used) By Operations 1,709,639
Cash Flows From Capital & Related Financing
Acquisition of Capital Assets (391,709)
Interest Paid on Debt (59,538)
Principal Paid on Debt (212,298)
Changes in Other Long-Term Obligations 1,711
Cash Provided (Used) By Capital & Related Financing (661,834)
Cash Flows From Investments
Interest Income 6,996
Cash Provided (Used) By Investments 6,996
Change in Cash 1,054,801
Cash - Beginning 2,412,457
Cash - Ending $3,467,258
Cash Reconciliation
Cash $1,679,904
Restricted Cash 1,787,354
Total Cash $3,467,258
Reconciliation of Operating Income (Loss) to Cash
Provided (Used) By Operations
Operating Income (Loss) $1,343,736
Adjustments to Reconcile Operating Income (Loss) to
Cash Provided (Used) by Operations:
Depreciation 405,060
PERSI Contributions (30,039)
Changes in Assets & Liabilities:
Receivables (10,927)
Accounts Payable & Accrued Expenses (216)
Deposits Payable 2,025
Cash Provided (Used) By Operations $1,709,639
Noncash Capital & Related Financing Activities:
Capital Contributions - Water System Contributed by Developers $774,520
See Accompanying Notes 14
CITY OF EAGLE, IDAHO
Notes to Financial Statements
15
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity – The City of Eagle, Idaho (the City) provides basic municipal services and operates
under a mayor-council form of government. These financial statements are prepared in accordance with
generally accepted accounting principles (GAAP) as applied to cities. The governmental accounting
standards board (GASB) is responsible for establishing GAAP for state and local governments through its
pronouncements (statements and interpretations). The more significant accounting policies established in
GAAP and used by the City are discussed below.
As required by GAAP, these financial statements present the City and its component unit, the Spring Valley
Community Infrastructure District No. 1, an entity for which the City is considered to be financial
accountable. A component unit is included in the City’s reporting entity if it is both fiscally dependent on
the City (the primary government) and there is the potential for the component unit to provide specific
financial benefits to, or impose specific financial burdens on the primary government. Because of the
closeness of their relationship with the primary government (the City), some component units are blended
as though they are part of the primary government and are reported as special revenue funds. Blended
component units include the SVCID. The SVCID board has directors who are also City council members
and the SVCID’s operational responsibilities are performed by the SVCID board and City staff. Separate
financial statements for the SVCID are issued and available from the City.
Basic Financial Statements - Government-Wide Statements – The City’s basic financial statements
include both government-wide (reporting the City as a whole) and fund financial statements (reporting the
City’s major funds). Both government-wide and fund financial statements categorize primary activities as
either governmental or business-type.
In the government-wide statement of net position, both the governmental and business-type activities
columns (a) are presented on a consolidated basis by column, (b) and are reported on a full accrual,
economic resource basis, which recognizes all long-term assets and receivables as well as long-term debt
and obligations.
The government-wide statement of activities reports both the gross and net cost of each of the City’s
functions and business-type activities. The functions are also supported by general government revenues as
reported in the statement of activities. The statement of activities reduces gross expenses (including
depreciation when recorded) by related program revenues and operating and capital grants. Program
revenues must be directly associated with the function. Internal activity between funds is eliminated in the
government-wide statement of activities. Operating grants include operating-specific and discretionary
(either operating or capital) grants while the capital grants column reports capital-specific grants.
The net costs (by function or business-type activity) are normally covered by general revenues.
The City’s sole activity is providing basic municipal services, and substantially all expenses are directly
related to this activity. Accordingly, there is no allocation of indirect costs.
The government-wide focus is more on the sustainability of the City as an entity and the change in the
City’s net position resulting from the current year’s activities. Fiduciary funds, when present, are not
included in the government-wide statements.
Basic Financial Statements - Fund Financial Statements – The financial transactions of the City are
reported in individual funds in the fund financial statements. Each fund is accounted for by providing a
CITY OF EAGLE, IDAHO
Notes to Financial Statements
16
separate set of self-balancing accounts that comprises its assets, deferred outflows of resources, liabilities,
deferred inflows of resources, fund equity, revenues and expenditures/expenses.
The emphasis in fund financial statements is on the major funds. Nonmajor funds by category are
summarized into a single column. Generally accepted accounting principles set forth minimum criteria
(percentage of assets and deferred outflows of resources, liabilities and deferred inflows of resources,
revenues or expenditures/expenses of the funds) for the determination of major funds.
The focus of the governmental funds' measurement (in the fund statements) is upon determination of
financial position and changes in financial position (sources, uses, and balances of financial resources)
rather than upon net income. Major governmental funds of the City include:
General Fund – The general fund is the City’s primary operating fund. It is used to account for all financial
resources except those required to be accounted for in another fund.
Special Revenue Funds – Special revenue funds are used to account for the proceeds of specific revenue
sources that are legally restricted to expenditures for specified purposes. Major special revenue funds
include the library fund, which accounts for the revenues earned and expenses incurred in providing library
services.
Debt Service Fund – The debt service fund is used to account for the accumulation of funds for the periodic
payment of principal and interest on long term debt.
Capital Projects Fund – Capital projects funds are used to account for the acquisition and betterment of
capital assets. Major capital project funds include the park fund, used to account for the maintenance and
betterment of parks and related facilities and the capital projects fund, used to account for the maintenance
and betterment of capital assets.
The focus of proprietary fund measurement is upon determination of operating income, changes in net
position, financial position, and cash flows. The generally accepted accounting principles applicable are
those similar to businesses in the private sector. Enterprise funds are required to be used to account for
operations for which a fee is charged to external users for goods or services and the activity is financed with
debt that is solely secured by a pledge of the net revenues. The activities reported in enterprise funds are
reported as business-type activities in the government-wide financial statements. Major enterprise funds of
the City include:
Water Fund – The water fund accounts for the revenues earned and expenses incurred in providing water
services.
Basis of Accounting – Basis of accounting refers to the point at which revenues or expenditures/expenses
are recognized in the accounts and reported in the financial statements. It relates to the timing of the
measurements made regardless of the measurement focus applied.
Both governmental and business-type activities in the government-wide financial statements and
proprietary and fiduciary fund financial statements are reported on the full accrual basis of accounting.
Revenues are recognized when earned and expenses are recognized when incurred.
The governmental funds financial statements are presented on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual (when
CITY OF EAGLE, IDAHO
Notes to Financial Statements
17
they become both measurable and available). "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or within thirty days after year end.
Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include
principal and interest on long-term debt which, if any, are recognized when due and payable.
Cash – The cash balances of the City’s funds are pooled for investment purposes. The individual funds’
portions of the pooled cash are reported in each fund as cash. Interest earned on pooled cash is allocated to
the various funds in proportion to each fund’s respective investment balance.
For purposes of the statement of cash flows, the City considers all investments (including restricted cash)
available for immediate withdrawal or with maturities of three months or less to be cash and cash
equivalents (referred to as cash).
Receivables – Receivables are reported net of any estimated uncollectible amounts.
Inventories – Material supplies on hand at year end are stated at the lower of cost or net realizable value
using the first-in, first-out method.
Capital Assets and Depreciation – Capital assets purchased or acquired with an original cost of $5,000 or
more are reported at historical cost or estimated historical cost. Contributed assets are reported at acquisition
value as of the date received. Additions, improvements and other capital outlays that significantly extend
the useful life of an asset are capitalized. Other costs incurred for repairs and maintenance are expensed as
incurred. Depreciation over the estimated useful lives of all depreciable assets is recorded using the straight
line method.
Compensated Absences – The City provides certain compensated absences to its employees. The
estimated amount of compensation for future amounts is recorded as a liability in the accompanying
financial statements.
Pensions – For purposes of measuring the net pension liability and pension expense/revenue, information
about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (the Base
Plan) and additions to/deductions from 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.
Deferred Outflows/Inflows of Resources – The City’s financial statements may report deferred
outflows/inflows of resources. Deferred outflows of resources represent a consumption of net assets that
apply to a future period. Deferred inflows of resources represent an acquisition of net assets that apply to a
future period. Deferred outflows/inflows of resources generally represent amounts that are not available in
the current period.
Net Position – Net position is assets plus deferred outflows of resources less liabilities less deferred inflows
of resources. The net investment in capital assets component of net position consists of the historical cost
of capital assets less accumulated depreciation less any outstanding debt that was used to finance those
assets plus deferred outflows of resources less deferred inflows of resources related to those assets.
Restricted net position consists of assets that are restricted by creditors, grantors, contributors, legislation,
and other parties. All other net position not reported as restricted or net investment in capital assets is
reported as unrestricted.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
18
Fund Balance Classifications – Restrictions of the fund balance indicate portions that are legally or
contractually segregated for a specific future use. Nonspendable portions of the fund balance are those
amounts that cannot be spent because they are in a nonspendable form or because they are legally or
contractually required to be maintained intact. Committed portions represent amounts that can only be used
for specific purposes pursuant to formal action (i.e. board approval) of the reporting entity’s governing
body. Assigned portions represent amounts that are constrained by the government’s intent to be used for
a specific purpose. Remaining fund balances are reported as unassigned. When expenditures are incurred
that qualify for either restricted or unrestricted resources, the City first utilizes restricted resources. When
expenditures are incurred that qualify for either committed or assigned or unassigned resources, the City
first utilizes committed resources then assigned resources before using unassigned resources.
Property Taxes – The City is responsible for levying property taxes, but the taxes are collected by the
respective county. Taxes are levied by the second Monday in September for each calendar year. Taxes are
due in two installments – December 20th and June 20th. A lien is filed on real property three years from the
date of delinquency.
Owner Contributions – Initial operating expenditures of the Spring Valley Community Infrastructure
District No. 1 (SVCID), the City’s component unit, are paid through property owner contributions.
Contingent Liabilities – Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the City expects such amounts, if any, to be
immaterial.
Interfund Activity – Interfund activity is reported either as loans, services provided, reimbursements, or
transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated
as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the
appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions
are treated as transfers.
Use of Estimates – The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ
from those estimates.
Custodial Credit Risk – The City maintains its cash at insured financial institutions. Periodically, balances
may exceed federally insured limits. Balances not covered by FDIC are collateralized whenever possible.
Risk Management – The City is exposed to various risks related to its operations. Insurance is utilized to
the extent practical to minimize these risks.
Subsequent Events – Subsequent events were evaluated through the date of the auditor’s report, which is
the date the financial statements were available to be issued.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
19
B. CASH
Cash consists of the following at year end:
Governmental Proprietary
Funds Funds Total
Cash - Deposits $11,067,707 $3,467,258 $14,534,965
Total $11,067,707 $3,467,258 $14,534,965
Deposits – At year end, the carrying amounts of the City's deposits were $14,534,965 and the bank balances
were $14,944,625. Of the bank balances, $300,223 was insured, $14,644,402 was collateralized, and the
balance was uninsured and uncollateralized.
Investments – State statutes authorize government entities to invest in certain bonds, notes, accounts,
investment pools, and other obligations of the state, U.S. Treasury, and U.S. corporations pursuant to Idaho
Code 67-1210 and 67-1210A. These statutes are designed to help minimize the custodial risk that deposits
may not be returned in the event of the failure of the issuer or other counterparty, interest rate risk resulting
from fair value losses arising from rising interest rates, or credit risks that an issuer or other counterparty
will not fulfill its obligations. The City's investment policy complies with state statutes.
Restricted Cash – Restricted cash at year end is cash set aside because its use is limited by City ordinance,
accounting policies, and loan covenants. In the general fund, cash received for surety bond deposits is
reported as restricted. In the water fund, the customer deposit account is used to report resources received
from users of the water system, to be returned to the customer when leaving the system provided that all
utility bills are paid current. Supply trunk line fees and water construction equivalency fees received in the
water fund are also reported as restricted. Per loan covenant, the City is required to restrict cash within its
water fund to equal one annual loan payment. Management is not aware of any violations of this covenant.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
20
C. CAPITAL ASSETS
A summary of capital assets for the year is as follows:
Beginning Ending
Governmental Activities Balance Increases Decreases Balance
Nondepreciable Capital Assets
Land $4,928,495 $1,168,233 $500 $6,096,228
Artwork/Collectibles 132,917 132,917
Construction in Progress 44,825 273,765 318,590
Total 5,106,237 1,441,998 500 6,547,735
Depreciable Capital Assets
Buildings 5,255,203 61,328 5,193,875
Improvements 10,010,166 1,458,216 11,468,382
Equipment 4,872,210 192,746 5,064,956
Subtotal 20,137,579 1,650,962 61,328 21,727,213
Accumulated Depreciation
Buildings 1,633,371 103,710 31,330 1,705,751
Improvements 4,561,220 377,777 4,938,997
Equipment 4,122,887 144,358 4,267,245
Subtotal 10,317,478 625,845 31,330 10,911,993
Total 9,820,101 1,025,117 29,998 10,815,220
Net Capital Assets $14,926,338 $2,467,115 $30,498 $17,362,955
Depreciation expense of $625,845 was charged to the capital assets program.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
21
Beginning Ending
Business-Type Activities Balance Increases Decreases Balance
Nondepreciable Capital Assets
Land $93,250 $93,250
Total 93,250 $0 $0 93,250
Depreciable Capital Assets
Buildings 559,285 559,285
Water System 8,107,383 1,026,996 9,134,379
Equipment 1,067,860 139,233 1,207,093
Subtotal 9,734,528 1,166,229 0 10,900,757
Accumulated Depreciation
Buildings 138,894 11,186 150,080
Water System 2,459,516 304,479 2,763,995
Equipment 636,838 89,395 726,233
Subtotal 3,235,248 405,060 0 3,640,308
Total 6,499,280 761,169 0 7,260,449
Net Capital Assets $6,592,530 $761,169 $0 $7,353,699
Depreciation expense of $405,060 was charged to the water services program.
D. INTERFUND TRANSFERS
Interfund transfers during the year consist of the following:
Fund Transfer In Transfer Out Purpose
General $1,453,831 Debt Service, Capital Projects
Debt Service $103,200 Debt Service
Capital Projects 1,350,631 Capital Projects
Total $1,453,831 $1,453,831
CITY OF EAGLE, IDAHO
Notes to Financial Statements
22
E. LONG-TERM DEBT AND OBLIGATIONS
Bonded Debt – At year end, the City’s bonded debt was as follows:
Governmental Activities:
Outstanding
2013 - $985,000 - general obligation bonds for capital assets due in annual
principal installments and semiannual interest payments with interest at 2.00% -
5.00% through 2025/26, secured by future taxes, paid through the debt service
fund $600,000
Total $600,000
Maturities on the bonds – governmental activities – are estimated as follows:
Year Ended Principal Interest
9/30/20 $75,000 $29,250
9/30/21 75,000 26,250
9/30/22 80,000 22,500
9/30/23 85,000 18,500
9/30/24 90,000 14,250
9/30/25-26 195,000 14,750
Total $600,000 $125,500
At a special election on May 21, 2013, the qualified electors of the Spring Valley Community Infrastructure
District No. 1 (SVCID), the City’s component unit, approved the issuance of general obligation bonds of
SVCID in an amount not to exceed $250,000,000 and revenue bonds of SVCID in an amount not to exceed
$75,000,000. These bonds did not fund during the 2018/19 year.
Business-Type Activities:
Water Revenue Loan - At year end, the City’s water revenue loan was as follows:
Water revenue loan - DEQ, due in semiannual payments of $90,918 with interest
at 3.25% through 2030/31, secured by future user fees, paid through the water
fund $1,679,744
Total $1,679,744
CITY OF EAGLE, IDAHO
Notes to Financial Statements
23
Maturities on the water revenue loan – business-type activities – are estimated as follows:
Year Ended Principal Interest
9/30/20 $128,278 $53,558
9/30/21 132,481 49,355
9/30/22 136,822 45,014
9/30/23 141,305 40,531
9/30/24 145,934 35,902
9/30/25-29 804,605 104,575
9/30/30-31 190,319 4,973
Total $1,679,744 $333,908
Changes in long-term debt and obligations are as follows:
Beginning Ending Due Within
Description Balance Increases Decreases Balance One Year
Governmental Act.
2013 G.O. Bonds $670,000 $70,000 $600,000 $75,000
Bond Premium 72,042 10,291 61,751 10,291
Comp. Absences 114,589 $32,857 147,446 147,446
Subtotal 856,631 32,857 80,291 809,197 232,737
Business-Type Act.
Water Revenue Loan 1,892,042 212,298 1,679,744 128,278
Comp. Absences 13,928 1,711 15,639 15,639
Subtotal 1,905,970 1,711 212,298 1,695,383 143,917
Total $2,762,601 $34,568 $292,589 $2,504,580 $376,654
Interest and related costs during the year amounted to $22,764 and $56,663 and were charged to the debt
service – interest and water services programs, respectively. Compensated absences are normally paid
through the general or water fund.
F. PENSION PLAN
Plan Description
The City contributes to the Base Plan which is a cost-sharing multiple-employer defined benefit pension
plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers
substantially all employees of the State of Idaho, its agencies and various participating political
subdivisions. The cost to administer the plan is financed through the contributions and investment earnings
of the plan. PERSI issues a publicly available financial report that includes financial statements and the
required supplementary information for PERSI. That report may be obtained on the PERSI website at
www.persi.idaho.gov.
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.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
24
Pension Benefits
The Base Plan provides retirement, disability, death and survivor benefits of eligible members or
beneficiaries. Benefits are based on members’ years of service, age, and highest average salary. Members
become fully vested in their retirement benefits with five years of credited service (5 months for elected or
appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for
their employment classification. The annual service retirement allowance for each month of credited service
is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months.
The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho
Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided
the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost
of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less;
however, any amount above the 1% minimum is subject to review by the Idaho Legislature.
Member and Employer Contributions
Member and employer contributions paid to the Base Plan are set by statute and are established as a percent
of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as
defined by state law. The Board may make periodic changes to employer and employee contribution rates
(expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to
pay benefits when due.
The contribution rates for employees are set by statute at 60% of the employer rate for general employees
and 72% for police and firefighters. As of June 30, 2019 it was 6.79% for general employees and 8.36%
for police and firefighters. The employer contribution rate as a percent of covered payroll is set by the
Retirement Board and was 11.32% for general employees and 11.66% for police and firefighters. The City’s
contributions were $309,754 for the year ended September 30, 2019.
Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows
of Resources Related to Pensions
At September 30, 2019, the City reported a liability for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2019, and the total pension liability used to calculate
the net pension liability was determined by an actuarial valuation as of that date. The City’s proportion of
the net pension liability was based on the City’s share of contributions in the Base Plan pension plan relative
to the total contributions of all participating PERSI Base Plan employers. At June 30, 2019, the City’s
proportion was 0.0754206 percent.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
25
For the year ended September 30, 2019, the City recognized pension revenue (expense) of ($326,714). At
September 30, 2019, the City reported deferred outflows of resources and deferred inflows of resources
related to pensions from the following sources:
Deferred Deferred
Outflows of Inflows of
Resources Resources
Differences between expected and actual experience $80,008 $101,462
Changes in assumptions or other inputs 47,888
Net difference between projected and actual earnings on pension plan
investments 293,285
Employer contributions subsequent to the measurement date 77,439
Total $205,335 $394,747
$77,439 reported as deferred outflows of resources related to pensions resulting from City contributions
made subsequent to the measurement date will be recognized as an addition to the pension expense or
reduction of the pension revenue in the year ending September 30, 2020.
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, 2018 the beginning of the
measurement period ended June 30, 2018 is 4.8 and 4.8 for the measurement period June 30, 2019.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension revenue (expense) as follows:
Year
Ended
9/30/20 ($31,000)
9/30/21 (132,814)
9/30/22 (64,696)
9/30/23 (38,341)
Total ($266,851)
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.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
26
The total pension liability in the June 30, 2019 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.00%
Salary increases 3.75%
Salary inflation 3.75%
Investment rate of return 7.05%, net of investment expenses
Cost-of-living adjustments 1%
Mortality rates were based on the RP – 2000 combined table for healthy males or females as appropriate
with the following offsets:
Set back 3 years for teachers
No offset for male fire and police
Forward one year for female fire and police
Set back one year for all general employees and all beneficiaries
An experience study was performed for the period July 1, 2013 through June 30, 2017 which reviewed all
economic and demographic assumptions other than mortality. The total pension liability as of June 30, 2019
is based on the results of an actuarial valuation date of July 1, 2019.
The long-term expected rate of return on pension plan investments was determined using the building block
approach and a forward-looking model in which best estimate ranges of expected future real rates of return
(expected returns, net of pension plan investment expense and inflation) are developed for each major asset
class. These ranges are combined to produce the long-term expected rate of return by weighing the expected
future real rates of return by the target asset allocation percentage and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption, the
System relies primarily on an approach which builds upon the latest capital market assumptions.
Specifically, the System uses consultants, investment managers and trustees to develop capital market
assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy
for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative
than the current allocation of System’s assets.
The best-estimate range for the long-term expected rate of return is determined by adding expected inflation
to expected long-term real returns and reflecting expected volatility and correlation.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
27
Long-Term Long-Term
Expected Expected
Nominal Rate Real Rate
Target of Return of Return
Asset Class Allocation (Arithmetic) (Arithmetic)
Core Fixed Income 30.00% 3.05% 0.80%
Broad US Equities 55.00% 8.30% 6.05%
Developed Foreign Equities 15.00% 8.45% 6.20%
Assumed Inflation - Mean 2.25% 2.25%
Assumed Inflation - Standard Deviation 1.50% 1.50%
Portfolio Arithmetic Mean Return 6.75% 4.50%
Portfolio Standard Deviation 12.54% 12.54%
Portfolio Long-Term (Geometric) Expected Rate of Return 6.13% 3.77%
Assumed Investment Expenses 0.40% 0.40%
Portfolio Long-Term (Geometric) Expected Rate of Return* 5.73% 3.37%
Portfolio Long-Term Expected Real Rate of Return* 4.19%
Portfolio Standard Deviation 14.16%
Valuation Assumptions Chosen by PERSI Board
Long-Term Expected Real Rate of Return* 4.05%
Assumed Inflation 3.00%
Long-Term Expected Nominal Rate of Return* 7.05%
*Net of Investment Expenses
Capital Market Assumptions
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 plans’ net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension liability. The long-term expected rate of return was determined net of pension
plan investment expense but without reduction for pension plan administrative expense.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
28
Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate.
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.05 percent, as well as what the City's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower (6.05 percent) or 1-
percentage-point higher (8.05 percent) than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(6.05%) (7.05%) (8.05%)
City's proportionate share of the net pension liability
(asset)$2,600,265 $860,905 ($577,490)
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
PERSI financial report.
PERSI issues a publicly available financial report that includes financial statements and the required
supplementary information for PERSI. That report may be obtained on the PERSI website at
www.persi.idaho.gov.
CITY OF EAGLE, IDAHO
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2019
Page 1 of 2
Final Budget
Variance
Actual Positive
General Fund Original Final Amounts (Negative)
Revenues
Taxes $2,028,046 $2,028,046 $2,075,163 $47,117
Franchise Fees 787,336 787,336 782,678 (4,658)
Intergovernmental 2,526,928 2,526,928 2,926,647 399,719
Licenses, Permits, & Fees 4,502,897 4,502,897 4,043,308 (459,589)
Interest 7,500 7,500 13,194 5,694
Miscellaneous & Grants 834,302 926,300 127,415 (798,885)
Total Revenues 10,687,009 10,779,007 9,968,405 (810,602)
Expenditures
Current Expenditures
General Government 8,922,168 9,027,260 3,902,298 5,124,962
Public Safety 2,764,029 2,833,103 2,820,452 12,651
Parks & Streets 2,290,630 3,273,452 1,897,171 1,376,281
Culture & Recreation 482,942 487,292 167,494 319,798
Capital Outlay 1,291,910 1,291,910 1,168,233 123,677
Debt Service - Principal 0000
Debt Service - Interest 0000
Total Expenditures 15,751,679 16,913,017 9,955,648 6,957,369 *
Excess (Deficiency) of Revenues
Over Expenditures (5,064,670) (6,134,010) 12,757 6,146,767
Other Financing Sources (Uses)
Owner Contributions 0000
Transfers In 0000
Transfers Out (1,453,831) (1,453,831) (1,453,831) 0 *
Total Other Financing Sources (Uses)(1,453,831) (1,453,831) (1,453,831) 0
Net Change in Fund Balances (6,518,501) (7,587,841) (1,441,074) 6,146,767
Fund Balances - Beginning 6,518,501 7,587,841 6,308,278 (1,279,563)
Fund Balances - Ending $0 $0 $4,867,204 $4,867,204
*Total expenditures (over) under appropriations are:$6,957,369
Budgeted Amounts
(GAAP Basis)
See Auditor's Report 29
CITY OF EAGLE, IDAHO
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2019
Page 2 of 2
Final Budget
Variance
Actual Positive
Library Fund Original Final Amounts (Negative)
Revenues
Taxes $1,395,329 $1,395,329 $1,436,110 $40,781
Franchise Fees 0000
Intergovernmental 0000
Licenses, Permits, & Fees 7,500 7,500 15,945 8,445
Interest 700 700 1,394 694
Miscellaneous & Grants 750 750 2,290 1,540
Total Revenues 1,404,279 1,404,279 1,455,739 51,460
Expenditures
Current Expenditures
General Government 0000
Public Safety 0000
Parks & Streets 0000
Culture & Recreation 1,771,275 1,866,955 1,204,377 662,578
Capital Outlay 188,884 227,784 192,746 35,038
Debt Service - Principal 0000
Debt Service - Interest 0000
Total Expenditures 1,960,159 2,094,739 1,397,123 697,616 *
Excess (Deficiency) of Revenues
Over Expenditures (555,880) (690,460) 58,616 749,076
Other Financing Sources (Uses)
Owner Contributions 0000
Transfers In 0000
Transfers Out 0000*
Total Other Financing Sources (Uses)0000
Net Change in Fund Balances (555,880) (690,460) 58,616 749,076
Fund Balances - Beginning 555,880 690,460 540,875 (149,585)
Fund Balances - Ending $0 $0 $599,491 $599,491
*Total expenditures (over) under appropriations are:$697,616
Budgeted Amounts
(GAAP Basis)
See Auditor's Report 30
CITY OF EAGLE, IDAHO
Schedule of Employer's Share of Net Pension Liability
PERSI - Base Plan
Last 10 - Fiscal Years*
2019 2018 2017 2016 2015
City's portion of the net pension liability 0.0754206% 0.0727685% 0.0640585% 0.0611008% 0.0600540%
City's proportionate share of the net pension
liability $860,905 $1,073,348 $1,006,890 $1,238,607 $790,813
City's covered payroll $2,561,590 $2,341,228 $1,989,611 $1,756,405 $1,674,832
City's proportional share of the net pension
liability as a percentage of its covered payroll 33.61% 45.85% 50.61% 70.52% 47.22%
Plan fiduciary net position as a percentage of
the total pension liability 93.79% 91.69% 90.68% 87.26% 91.38%
*GASB 68 requires ten years of information to be presented in this table. However, until a 10-year trend is compiled, only those years for which
information is available will be presented.
Data reported is measured as of June 30.
See Auditor's Report 31
CITY OF EAGLE, IDAHO
Schedule of Employer Contributions
PERSI - Base Plan
Last 10 - Fiscal Years*
2019 2018 2017 2016 2015
Statutorily required contribution $309,754 $269,919 $228,241 $198,825 $189,591
Contributions in relation to the statutorily
required contribution $309,754 $269,919 $228,241 $198,825 $189,591
Contribution deficiency (excess)$0 $0 $0 $0 $0
City's covered payroll $2,700,821 $2,384,443 $2,016,263 $1,756,405 $1,674,832
Contributions as a percentage of covered payroll 11.47% 11.32% 11.32% 11.32% 11.32%
*GASB 68 requires ten years of information to be presented in this table. However, until a 10-year trend is compiled, only those years for which
information is available will be presented.
Data reported is measured as of each year's fiscal year end.
See Auditor's Report 32
CITY OF EAGLE, IDAHO
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2019
Special Revenue Capital Projects
Spring Valley
CID No. 1 Pathway Total
Assets
Cash $8,450 $533,230 $541,680
Receivables:
Taxes 0
Intergovernmental 0
Accounts 1,550 1,550
Due From Other Funds 0
Restricted Cash 0
Total Assets $10,000 $533,230 $543,230
Liabilities
Accounts Payable & Accrued Expenses $0
Due To Other Funds 0
Deposits Payable 0
Total Liabilities $0 $0 0
Deferred Inflows of Resources
Unavailable Tax Revenues 0
Total Deferred Inflows of Resources 000
Fund Balances
Restricted - Special Programs 10,000 10,000
Restricted - Debt Service 0
Restricted - Capital Projects 533,230 533,230
Unassigned 0
Total Fund Balances 10,000 533,230 543,230
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $10,000 $533,230 $543,230
See Auditor's Report 33
CITY OF EAGLE, IDAHO
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonmajor Governmental Funds
Year Ended September 30, 2019
Special Revenue Capital Projects
Spring Valley
CID No. 1 Pathway Total
Revenues
Taxes $0
Franchise Fees 0
Intergovernmental 0
Licenses, Permits, & Fees $304,974 304,974
Interest 0
Miscellaneous & Grants 800 800
Total Revenues $0 305,774 305,774
Expenditures
Current Expenditures
General Government 9,075 9,075
Public Safety 0
Parks & Streets 0
Culture & Recreation 0
Capital Outlay 37,978 37,978
Debt Service - Principal 0
Debt Service - Interest 0
Total Expenditures 9,075 37,978 47,053
Excess (Deficiency) of Revenues
Over Expenditures (9,075) 267,796 258,721
Other Financing Sources (Uses)
Owner Contributions 9,075 9,075
Transfers In 0
Transfers Out 0
Total Other Financing Sources (Uses)9,075 0 9,075
Net Change in Fund Balances 0 267,796 267,796
Fund Balances - Beginning 10,000 265,434 275,434
Fund Balances - Ending $10,000 $533,230 $543,230
See Auditor's Report 34
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11501 Highway 95, Payette, Idaho 83661 | www.qcpas.com | info@qcpas.com | 208-642-1417
Independent Auditor’s Report on Internal Control Over Financial Reporting
and on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance With Government Auditing Standards
Honorable Mayor and City Council
City of Eagle, Idaho
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, each major fund, and the aggregate remaining fund information of
the City of Eagle, Idaho (the City), as of and for the year ended September 30, 2019, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements, and have
issued our report thereon dated January 6, 2020.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the purpose
of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not express
an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control that might
be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
36
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be reported
under Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City’s internal
control or compliance. This report is an integral part of an audit performed in accordance with Government
Auditing Standards in considering the City’s internal control over financial reporting and compliance.
Accordingly, this communication is not suitable for any other purpose.
Quest CPAs PLLC
Payette, Idaho
January 6, 2020