Finance - Annual Audit - 09/30/2021
City of Eagle, Idaho
Year Ended September 30, 2021
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 Asset and 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
Schedule of Expenditures of Federal Awards..................................................................................
35
Other Reports and Schedules
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......................................................................................................
36
CITY OF EAGLE, IDAHO
Table of Contents
ii
Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required by the Uniform Guidance ...................................................................
38
Schedule of Findings and Questioned Costs ................................................................................... 40
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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, 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
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, 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
Accounting principles generally accepted in the United States of America require that the budgetary
comparison schedules, schedule of employer’s share of net pension asset and 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 schedule of expenditures of federal awards is presented for purposes of additional
analysis as required by Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards and is also not a required part
of the basic financial statements.
The combining and individual nonmajor fund financial statements and 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 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
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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, we have also issued our report dated December 30,
2021, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, grant agreements and other matters. The
purpose of that report is solely to describe the scope of our testing of internal control over financial reporting
and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City’s internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City’s internal control
over financial reporting and compliance.
Quest CPAs PLLC
Payette, Idaho
December 30, 2021
CITY OF EAGLE, IDAHO
Statement of Net Position
September 30, 2021
Governmental Business-Type
Activities Activities Total
Assets
Current Assets
Cash $22,847,611 $2,979,987 $25,827,598
Receivables:
Taxes 23,269 23,269
Intergovernmental 863,581 863,581
Accounts 29,814 137,970 167,784
Total Current Assets 23,764,275 3,117,957 26,882,232
Noncurrent Assets
Restricted Cash 1,759,829 1,456,372 3,216,201
Nondepreciable Capital Assets 5,518,536 93,250 5,611,786
Depreciable Net Capital Assets 13,257,352 9,940,520 23,197,872
Net Pension Asset 62,319 5,717 68,036
Total Noncurrent Assets 20,598,036 11,495,859 32,093,895
Total Assets 44,362,311 14,613,816 58,976,127
Deferred Outflows of Resources
Pension Deferred Outflows 898,441 82,423 980,864
Total Deferred Outflows of Resources 898,441 82,423 980,864
Total Assets and Deferred Outflows
of Resources $45,260,752 $14,696,239 $59,956,991
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses $634,591 $121,291 $755,882
Deposits Payable 1,759,829 92,400 1,852,229
Unearned Grant Revenue 3,204,501 3,204,501
Accrued Interest 15,099 15,099
Long-Term Debt & Obligations, Current 318,384 159,865 478,249
Total Current Liabilities 5,917,305 388,655 6,305,960
Noncurrent Liabilities
Long-Term Debt & Obligations, Noncurrent 717,878 968,242 1,686,120
Total Noncurrent Liabilities 717,878 968,242 1,686,120
Total Liabilities 6,635,183 1,356,897 7,992,080
Deferred Inflows of Resources
Pension Deferred Inflows 1,993,604 182,893 2,176,497
Total Deferred Inflows of Resources 1,993,604 182,893 2,176,497
Total Liabilities and Deferred Inflows
of Resources 8,628,787 1,539,790 10,168,577
Net Position
Net Investment in Capital Assets 17,961,719 8,877,480 26,839,199
Restricted - Special Programs 1,222,953 1,222,953
Restricted - Debt Service 3,405 181,836 185,241
Restricted - Capital Projects 14,466,138 1,182,136 15,648,274
Unrestricted 2,977,750 2,914,997 5,892,747
Total Net Position 36,631,965 13,156,449 49,788,414
Total Liabilities and Deferred Inflows
of Resources and Net Position $45,260,752 $14,696,239 $59,956,991
See Accompanying Notes 4
CITY OF EAGLE, IDAHO
Statement of Activities
Year Ended September 30, 2021
Operating Capital
Charges For Grants And Grants And Net (Expense)
Functions/Programs Expenses Services Contributions Contributions Revenue
Governmental Activities
Current Expenditures
General Government $5,714,765 $2,480,451 $894,655 ($2,339,659)
Public Safety 3,150,472 1,367,439 (1,783,033)
Parks & Streets 1,807,394 784,486 567,684 (455,224)
Culture & Recreation 1,933,429 839,190 $2,563 (1,091,676)
Community Infrastructure District 388,791 55,791 (333,000)
Debt Service - Interest 16,409 (16,409)
Capital Assets 746,293 (746,293)
Total Governmental Activities 13,757,553 5,471,566 58,354 1,462,339 (6,765,294)
Business-Type Activities
Water Services 1,166,613 2,394,193 2,162,485 3,390,065
Total Business-Type Activities 1,166,613 2,394,193 0 2,162,485 3,390,065
Total $14,924,166 $7,865,759 $58,354 $3,624,824 ($3,375,229)
Governmental Business-Type
Changes in Net Position Activities Activities Total
Net (Expense) Revenue ($6,765,294) $3,390,065 ($3,375,229)
General Revenues
Taxes 4,056,262 4,056,262
Franchise Fees 911,940 911,940
Intergovernmental 3,715,207 3,715,207
Interest 15,115 6,122 21,237
Other Revenue (Expense) 8,615,184 8,615,184
Pension Revenue (Expense) (56,949) (5,224) (62,173)
Total 17,256,759 898 17,257,657
Change in Net Position 10,491,465 3,390,963 13,882,428
Net Position - Beginning 26,140,500 9,765,486 35,905,986
Net Position - Ending $36,631,965 $13,156,449 $49,788,414
Program Revenues
See Accompanying Notes 5
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2021
Page 1 of 3
Debt
General Library Service Park
Fund Fund Fund Fund
Assets
Cash $4,317,095 $875,036 $3,405 $3,700,743
Receivables:
Taxes 14,403 8,866
Intergovernmental 863,581
Accounts 5,786 1,872
Due From Other Funds
Restricted Cash 1,759,829
Total Assets $6,960,694 $885,774 $3,405 $3,700,743
Liabilities
Accounts Payable & Accrued Expenses $585,278 $45,721
Due To Other Funds
Deposits Payable 1,759,829
Unearned Grant Revenue
Total Liabilities 2,345,107 45,721 $0 $0
Deferred Inflows of Resources
Unavailable Tax Revenues 12,637 7,786
Total Deferred Inflows of Resources 12,637 7,786 0 0
Fund Balances
Restricted - Special Programs 390,686 832,267
Restricted - Debt Service 3,405
Restricted - Capital Projects 3,700,743
Unassigned 4,212,264
Total Fund Balances 4,602,950 832,267 3,405 3,700,743
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $6,960,694 $885,774 $3,405 $3,700,743
See Accompanying Notes 6
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2021
Page 2 of 3
Capital Other Total
Projects Governmental Governmental
Fund Funds Funds
Assets
Cash $13,205,969 $745,363 $22,847,611
Receivables:
Taxes 0 23,269
Intergovernmental 0 863,581
Accounts 22,156 29,814
Due From Other Funds 00
Restricted Cash 0 1,759,829
Total Assets $13,205,969 $767,519 $25,524,104
Liabilities
Accounts Payable & Accrued Expenses $3,592 $634,591
Due To Other Funds 00
Deposits Payable 0 1,759,829
Unearned Grant Revenue $3,204,501 0 3,204,501
Total Liabilities 3,204,501 3,592 5,598,921
Deferred Inflows of Resources
Unavailable Tax Revenues 0 20,423
Total Deferred Inflows of Resources 0 0 20,423
Fund Balances
Restricted - Special Programs 0 1,222,953
Restricted - Debt Service 0 3,405
Restricted - Capital Projects 10,001,468 763,927 14,466,138
Unassigned 0 4,212,264
Total Fund Balances 10,001,468 763,927 19,904,760
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $13,205,969 $767,519 $25,524,104
See Accompanying Notes 7
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2021
Page 3 of 3
Reconciliation of Total Governmental Fund Balances to Net Position
of Governmental Activities
Total Governmental Fund Balances $19,904,760
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.18,775,888
Certain receivables are not available to pay for current period
expenditures and therefore are deferred in the funds.20,423
Certain liabilities are not due and payable in the current period and
therefore are not reported in the funds.(1,036,262)
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.(1,032,844)
Net Position of Governmental Activities $36,631,965
See Accompanying Notes 8
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2021
Page 1 of 3
Debt
General Library Service Park
Fund Fund Fund Fund
Revenues
Taxes $2,524,091 $1,542,035
Franchise Fees 911,940
Intergovernmental 3,715,207
Licenses, Permits, & Fees 4,633,450 6,539 $641,539
Interest 6,980 1,387 5,065
Miscellaneous & Grants 1,346,295 7,274
Total Revenues 13,137,963 1,557,235 $0 646,604
Expenditures
Current Expenditures
General Government 5,829,699
Public Safety 3,213,834
Parks & Streets 1,843,744
Culture & Recreation 829,974 1,142,341
Community Infrastructure District
Capital Outlay 41,480 242,600 382,363
Debt Service - Principal 75,000
Debt Service - Interest 26,700
Total Expenditures 11,758,731 1,384,941 101,700 382,363
Excess (Deficiency) of Revenues
Over Expenditures 1,379,232 172,294 (101,700) 264,241
Other Financing Sources (Uses)
Proceeds from Bond Issuance
Owner Contributions
Transfers In 101,700 1,016,818
Transfers Out (1,321,451)
Total Other Financing Sources (Uses)(1,321,451) 0 101,700 1,016,818
Net Change in Fund Balances 57,781 172,294 0 1,281,059
Fund Balances - Beginning 4,545,169 659,973 3,405 2,419,684
Fund Balances - Ending $4,602,950 $832,267 $3,405 $3,700,743
See Accompanying Notes 9
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2021
Page 2 of 3
Capital Other Total
Projects Governmental Governmental
Fund Funds Funds
Revenues
Taxes $0 $4,066,126
Franchise Fees 0 911,940
Intergovernmental 0 3,715,207
Licenses, Permits, & Fees 190,038 5,471,566
Interest $536 1,147 15,115
Miscellaneous & Grants 9,689,235 2,423 11,045,227
Total Revenues 9,689,771 193,608 25,225,181
Expenditures
Current Expenditures
General Government 0 5,829,699
Public Safety 0 3,213,834
Parks & Streets 0 1,843,744
Culture & Recreation 0 1,972,315
Community Infrastructure District 388,791 388,791
Capital Outlay 2,508,550 113,221 3,288,214
Debt Service - Principal 0 75,000
Debt Service - Interest 0 26,700
Total Expenditures 2,508,550 502,012 16,638,297
Excess (Deficiency) of Revenues
Over Expenditures 7,181,221 (308,404) 8,586,884
Other Financing Sources (Uses)
Proceeds from Bond Issuance 323,000 323,000
Owner Contributions 55,791 55,791
Transfers In 1,219,751 0 2,338,269
Transfers Out (1,016,818) 0 (2,338,269)
Total Other Financing Sources (Uses)202,933 378,791 378,791
Net Change in Fund Balances 7,384,154 70,387 8,965,675
Fund Balances - Beginning 2,617,314 693,540 10,939,085
Fund Balances - Ending $10,001,468 $763,927 $19,904,760
See Accompanying Notes 10
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2021
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 $8,965,675
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.1,576,780
Revenues in the statement of activities that do not provide current
financial resources are deferred in the funds.(9,864)
Proceeds of debt is a financing source in the governmental funds, but
increases long-term debt in the statement of net position.(323,000)
Repayment of debt principal is an expenditure in the governmental
funds, but the repayment reduces long-term debt in the statement of net
position.75,000
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.(46,715)
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.243,298
Change in Net Position of Governmental Activities $10,491,465
See Accompanying Notes 11
CITY OF EAGLE, IDAHO
Statement of Net Position - Proprietary Fund
September 30, 2021
Water
Fund
Assets
Current Assets
Cash $2,979,987
Receivables:
Accounts 137,970
Total Current Assets 3,117,957
Noncurrent Assets
Restricted Cash 1,456,372
Nondepreciable Capital Assets 93,250
Depreciable Net Capital Assets 9,940,520
Net Pension Asset 5,717
Total Noncurrent Assets 11,495,859
Total Assets 14,613,816
Deferred Outflows of Resources
Pension Deferred Outflows 82,423
Total Deferred Outflows of Resources 82,423
Total Assets and Deferred Outflows of Resources $14,696,239
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses $121,291
Deposits Payable 92,400
Accrued Interest 15,099
Long-Term Debt & Obligations, Current 159,865
Total Current Liabilities 388,655
Noncurrent Liabilities
Long-Term Debt & Obligations, Noncurrent 968,242
Total Noncurrent Liabilities 968,242
Total Liabilities 1,356,897
Deferred Inflows of Resources
Pension Deferred Inflows 182,893
Total Deferred Inflows of Resources 182,893
Total Liabilities and Deferred Inflows of Resources 1,539,790
Net Position
Net Investment in Capital Assets 8,877,480
Restricted - Debt Service 181,836
Restricted - Capital Projects 1,182,136
Unrestricted 2,914,997
Total Net Position 13,156,449
Total Liabilities and Deferred Inflows of Resources and Net Position $14,696,239
See Accompanying Notes 12
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund
Year Ended September 30, 2021
Water
Fund
Operating Revenues
Service Fees $1,571,341
STL & WCE Fees 416,856
Hook-Up Fees 386,271
Miscellaneous 19,725
Total Operating Revenues 2,394,193
Operating Expenses
Personnel 359,273
Operations & Maintenance 246,533
Depreciation 524,050
Total Operating Expenses 1,129,856
Operating Income (Loss)1,264,337
Nonoperating Revenues (Expenses)
Interest Income 6,122
Interest (Expense) (36,757)
Pension Revenue (Expense) (5,224)
Total Nonoperating Revenue (Expenses)(35,859)
Income (Loss) Before Contributions 1,228,478
Capital Contributions 2,162,485
Change in Net Position 3,390,963
Net Position - Beginning 9,765,486
Net Position - Ending $13,156,449
See Accompanying Notes 13
CITY OF EAGLE, IDAHO
Statement of Cash Flows - Proprietary Fund
Year Ended September 30, 2021
Water
Fund
Cash Flows From Operations
Receipts from Customers $2,385,388
Payments for Personnel (446,574)
Payments for Goods & Services (219,101)
Cash Provided (Used) By Operations 1,719,713
Cash Flows From Capital & Related Financing
Acquisition of Capital Assets (169,197)
Interest Paid on Debt (41,076)
Principal Paid on Debt (318,924)
Changes in Other Long-Term Obligations (7,975)
Cash Provided (Used) By Capital & Related Financing (537,172)
Cash Flows From Investments
Interest Income 6,122
Cash Provided (Used) By Investments 6,122
Change in Cash 1,188,663
Cash - Beginning 3,247,696
Cash - Ending $4,436,359
Cash Reconciliation
Cash $2,979,987
Restricted Cash 1,456,372
Total Cash $4,436,359
Reconciliation of Operating Income (Loss) to Cash
Provided (Used) By Operations
Operating Income (Loss) $1,264,337
Adjustments to Reconcile Operating Income (Loss) to
Cash Provided (Used) by Operations:
Depreciation 524,050
PERSI Contributions (87,301)
Changes in Assets & Liabilities:
Receivables (18,255)
Accounts Payable & Accrued Expenses 27,432
Deposits Payable 9,450
Cash Provided (Used) By Operations $1,719,713
Noncash Capital & Related Financing Activities:
Capital Contributions - Water System Contributed by Developers $2,162,485
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 of directors are appointed by and comprised of
City council members and certain SVCID operational responsibilities are performed by the SVCID board.
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 asset/liability and pension revenue/expense,
information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan
(the Base Plan) and 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.
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 $24,607,440 $4,436,359 $29,043,799
Total $24,607,440 $4,436,359 $29,043,799
Deposits – At year end, the carrying amounts of the City's deposits were $29,043,799 and the bank balances
were $29,474,685. Of the bank balances, $322,642 was insured and $29,152,043 was collateralized.
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 $4,927,995 $2,664,175 $2,525,141 $5,067,029
Artwork/Collectibles 132,917 132,917
Construction in Progress 318,590 318,590
Total 5,379,502 2,664,175 2,525,141 5,518,536
Depreciable Capital Assets
Buildings 5,193,875 1,002,172 6,196,047
Improvements 12,983,853 918,687 13,902,540
Equipment 5,238,413 263,180 5,501,593
Subtotal 23,416,141 2,184,039 0 25,600,180
Accumulated Depreciation
Buildings 1,809,460 123,753 1,933,213
Improvements 5,358,127 438,575 5,796,702
Equipment 4,428,948 183,965 4,612,913
Subtotal 11,596,535 746,293 0 12,342,828
Total 11,819,606 1,437,746 0 13,257,352
Net Capital Assets $17,199,108 $4,101,921 $2,525,141 $18,775,888
Depreciation expense of $746,293 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 10,361,461 2,231,604 12,593,065
Equipment 1,294,524 100,078 1,394,602
Subtotal 12,215,270 2,331,682 0 14,546,952
Accumulated Depreciation
Buildings 161,266 11,185 172,451
Water System 3,104,612 413,613 3,518,225
Equipment 816,504 99,252 915,756
Subtotal 4,082,382 524,050 0 4,606,432
Total 8,132,888 1,807,632 0 9,940,520
Net Capital Assets $8,226,138 $1,807,632 $0 $10,033,770
Depreciation expense of $524,050 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 $1,321,451 Debt Service, Capital Projects
Debt Service $101,700
Debt Service
Park 1,016,818
Capital Projects
Capital Projects 1,219,751 1,016,818
Capital Projects
Total $2,338,269 $2,338,269
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 at2.00%-
5.00% through 2025/26, secured by future taxes, paid through the debt service
fund $450,000
Total $450,000
Maturities on the bonds – governmental activities – are estimated as follows:
Year Ended Principal Interest
9/30/22 $80,000 $22,500
9/30/23 85,000 18,500
9/30/24 90,000 14,250
9/30/25 95,000 9,750
9/30/26 100,000 5,000
Total $450,000 $70,000
At year end, the SVCID’s (the City’s component unit) bonded debt was as follows:
Outstanding
2021 - $323,000 - general obligation bonds for infrastructure due in annual
principal installments and semiannual interest payments with interest at3%through
2050/51, secured by future taxes, paid through the SVCID debt service fund
$323,000
Total $323,000
Maturities on the SVCID’s (the City’s component unit) bonds are estimated as follows:
Year Ended Principal Interest
9/30/22 $6,000 $9,986
9/30/23 7,000 9,510
9/30/24 7,000 9,300
9/30/25 7,000 9,090
9/30/26 8,000 8,880
9/30/27-31 42,000 40,770
9/30/32-36 48,000 34,110
9/30/37-41 57,000 26,370
9/30/42-46 65,000 17,370
9/30/47-51 76,000 6,990
Total $323,000 $172,376
CITY OF EAGLE, IDAHO
Notes to Financial Statements
23
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 2027/28, secured by future user fees, paid through the water
fund $1,115,023
Total $1,115,023
Maturities on the water revenue loan – business-type activities – are estimated as follows:
Year Ended Principal Interest
9/30/22 $146,781 $35,055
9/30/23 151,590 30,246
9/30/24 156,557 25,279
9/30/25 161,686 20,150
9/30/26 166,984 14,852
9/30/27-28 331,425 13,112
Total $1,115,023 $138,694
Changes in long-term debt and obligations are as follows:
Beginning Ending Due Within
Description Balance Increases Decreases Balance One Year
Governmental Act.
2013 GO Bonds $525,000 $75,000 $450,000 $80,000
Bond Premium 51,460 10,291 41,169 10,291
2021 GO Bonds-SVCID 0 $323,000 323,000 6,000
Comp. Absences 175,378 46,715 222,093 222,093
Subtotal 751,838 369,715 85,291 1,036,262 318,384
Business-Type Act.
Water Revenue Loan 1,433,947 318,924 1,115,023 146,781
Comp. Absences 21,059 7,975 13,084 13,084
Subtotal 1,455,006 0 326,899 1,128,107 159,865
Total $2,206,844 $369,715 $412,190 $2,164,369 $478,249
Interest and related costs during the year amounted to $16,409 and $36,757 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
CITY OF EAGLE, IDAHO
Notes to Financial Statements
24
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 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 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 $398,638 for the year ended September 30, 2021.
Pension Asset/Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred
Inflows of Resources Related to Pensions
At September 30, 2021, the City reported an asset for its proportionate share of the net pension asset. The
net pension asset was measured as of June 30, 2021, and the total pension asset used to calculate the net
pension asset was determined by an actuarial valuation as of that date. The City’s proportion of the net
pension asset was based on the City’s share of contributions in the Base Plan pension plan relative to the
total contributions of all participating PERSI Base Plan employers. At June 30, 2021, the City’s proportion
was 0.0861453 percent.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
25
For the year ended September 30, 2021, the City recognized pension expense of $62,173. At September 30,
2021, 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 $100,241 $39,547
Changes in assumptions or other inputs 780,963
Net difference between projected and actual earnings on pension plan
investments 2,136,950
Employer contributions subsequent to the measurement date 99,660
Total $980,864 $2,176,497
$99,660 reported as deferred outflows of resources related to pensions resulting from City contributions
made subsequent to the measurement date will be recognized as an adjustment to the pension expense in
the year ending September 30, 2022.
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 (expense offset) as follows:
Year
Ended
9/30/22 ($304,696)
9/30/23 (274,594)
9/30/24 (239,964)
9/30/25 (476,040)
Total ($1,295,294)
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 asset 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 21%
Teachers ‐ Males Pub‐2010 Teacher Tables, increased 12%
Teachers ‐ Females Pub‐2010 Teacher Tables, increased 21%
Fire & Police ‐ Males Pub‐2010 Safety Tables, increased 21%
Fire & Police ‐ Females Pub‐2010 Safety Tables, increased 26%
Disabled Members ‐ Males Pub‐2010 Disabled Tables, increased 38%
Disabled Members ‐ Females Pub‐2010 Disabled Tables, increased 36%
An experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all
economic and demographic assumptions other than mortality. The total pension asset as of June 30, 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.
Even though history provides a valuable perspective for setting the investment return assumption, the
System relies primarily on an approach which builds upon the latest capital market assumptions.
Specifically, the System uses consultants, investment managers and trustees to develop capital market
assumptions in analyzing the System’s asset allocation. The assumptions and the System’s formal policy
for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative
than the current allocation of System’s assets.
The best-estimate range for the long-term expected rate of return is determined by adding expected inflation
to expected long-term real returns and reflecting expected volatility and correlation. The capital market
assumptions are as of 2021.
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% 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* 5.15% 3.06%
Portfolio Long-Term Expected Real Rate of Return* 4.14%
Portfolio Standard Deviation 14.16%
Valuation Assumptions Chosen by PERSI Board
Long-Term Expected Real Rate of Return* 4.05%
Assumed Inflation 2.30%
Long-Term Expected Geometric Rate of Return* 6.35%
*Net of Investment Expenses
Capital Market Assumptions from Callan 2021
Investment Policy Assumptions from PERSI November 2019
Economic/Demographic Assumptions from Milliman 2021
Discount Rate
The discount rate used to measure the total pension asset was 6.35%. The projection of cash flows used to
determine the discount rate assumed that contributions from plan members will be made at the current
contribution rate. Based on these assumptions, the pension plans’ net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension asset. The long-term expected rate of return was determined net of pension plan
investment expense but without reduction for pension plan administrative expense.
Sensitivity of the City's proportionate share of the net pension asset to changes in the discount rate.
The following presents the City's proportionate share of the net pension asset calculated using the discount
rate of 6.35 percent, as well as what the City's proportionate share of the net pension asset would be if it
were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point higher than the
current rate:
CITY OF EAGLE, IDAHO
Notes to Financial Statements
28
Current
1% Decrease Discount Rate 1% Increase
(5.35%) (6.35%) (7.35%)
City's proportionate share of the net pension liability
(asset)$2,365,067 ($68,036) ($2,062,499)
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.
G. TAX ABATEMENTS
Idaho counties are authorized by state statute to transact certain property tax activity with property owners
in their respective taxing districts. The counties collect the property taxes, then allocate and remit those
collections among the taxing districts within the counties. The counties are authorized to cancel or reduce
property taxes due to various reasons, including the circuit breaker program, agricultural and other
exemptions, and section 63-602NN exemptions under Idaho code for real property improvements.
CITY OF EAGLE, IDAHO
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2021
Page 1 of 2
Final Budget
Variance
Actual Positive
General Fund Original Final Amounts (Negative)
Revenues
Taxes $2,489,723 $2,489,723 $2,524,091 $34,368
Franchise Fees 839,810 839,810 911,940 72,130
Intergovernmental 3,249,624 3,249,624 3,715,207 465,583
Licenses, Permits, & Fees 2,762,957 2,762,957 4,633,450 1,870,493
Interest 6,000 6,000 6,980 980
Miscellaneous & Grants 1,245,841 1,245,841 1,346,295 100,454
Total Revenues 10,593,955 10,593,955 13,137,963 2,544,008
Expenditures
Current Expenditures
General Government 14,957,346 14,957,346 5,829,699 9,127,647
Public Safety 3,213,834 3,213,834 3,213,834 0
Parks & Streets 2,571,574 2,571,574 1,843,744 727,830
Culture & Recreation 968,778 968,778 829,974 138,804
Community Infrastructure District 0000
Capital Outlay 150,000 150,000 41,480 108,520
Debt Service - Principal 0000
Debt Service - Interest 0000
Total Expenditures 21,861,532 21,861,532 11,758,731 10,102,801 *
Excess (Deficiency) of Revenues
Over Expenditures (11,267,577) (11,267,577) 1,379,232 12,646,809
Other Financing Sources (Uses)
Proceeds from Bond Issuance 0000
Owner Contributions 0000
Transfers In 0000
Transfers Out (2,971,451) (2,971,451) (1,321,451) 1,650,000 *
Total Other Financing Sources (Uses)(2,971,451) (2,971,451) (1,321,451) 1,650,000
Net Change in Fund Balances (14,239,028) (14,239,028) 57,781 14,296,809
Fund Balances - Beginning 14,239,028 14,239,028 4,545,169 (9,693,859)
Fund Balances - Ending $0 $0 $4,602,950 $4,602,950
*Total expenditures (over) under appropriations are:$11,752,801
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, 2021
Page 2 of 2
Final Budget
Variance
Actual Positive
Library Fund Original Final Amounts (Negative)
Revenues
Taxes $1,512,079 $1,512,079 $1,542,035 $29,956
Franchise Fees 0000
Intergovernmental 0000
Licenses, Permits, & Fees 6,500 6,500 6,539 39
Interest 700 700 1,387 687
Miscellaneous & Grants 750 750 7,274 6,524
Total Revenues 1,520,029 1,520,029 1,557,235 37,206
Expenditures
Current Expenditures
General Government 0000
Public Safety 0000
Parks & Streets 0000
Culture & Recreation 1,708,514 1,708,514 1,142,341 566,173
Community Infrastructure District 0000
Capital Outlay 326,515 326,515 242,600 83,915
Debt Service - Principal 0000
Debt Service - Interest 0000
Total Expenditures 2,035,029 2,035,029 1,384,941 650,088 *
Excess (Deficiency) of Revenues
Over Expenditures (515,000) (515,000) 172,294 687,294
Other Financing Sources (Uses)
Proceeds from Bond Issuance 0000
Owner Contributions 0000
Transfers In 0000
Transfers Out 0000*
Total Other Financing Sources (Uses)0000
Net Change in Fund Balances (515,000) (515,000) 172,294 687,294
Fund Balances - Beginning 515,000 515,000 659,973 144,973
Fund Balances - Ending $0 $0 $832,267 $832,267
*Total expenditures (over) under appropriations are:$650,088
Budgeted Amounts
(GAAP Basis)
See Auditor's Report 30
CITY OF EAGLE, IDAHO
Schedule of Employer's Share of Net Pension Asset and Liability
PERSI - Base Plan
Last 10 - Fiscal Years*
2021 2020 2019
City's portion of the net pension asset/liability 0.0861453% 0.0806411% 0.0754206%
City's proportionate share of the net pension (asset) liability ($68,036) $1,872,593 $860,905
City's covered payroll $3,214,824 $2,871,533 $2,561,590
City's proportional share of the net pension asset/liability as a percentage
of its covered payroll -2.12% 65.21% 33.61%
Plan fiduciary net position as a percentage of the total pension
asset/liability 100.36% 88.22% 93.79%
2018 2017 2016 2015
City's portion of the net pension asset/liability 0.0727685% 0.0640585% 0.0611008% 0.0600540%
City's proportionate share of the net pension (asset) liability $1,073,348 $1,006,890 $1,238,607 $790,813
City's covered payroll $2,341,228 $1,989,611 $1,756,405 $1,674,832
City's proportional share of the net pension asset/liability as a percentage
of its covered payroll 45.85% 50.61% 70.52% 47.22%
Plan fiduciary net position as a percentage of the total pension
asset/liability 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*
2021 2020 2019
Statutorily required contribution $398,638 $352,614 $309,754
Contributions in relation to the statutorily required contribution $398,638 $352,614 $309,754
Contribution deficiency (excess)$0 $0 $0
City's covered payroll $3,338,677 $2,953,216 $2,700,821
Contributions as a percentage of covered payroll 11.94% 11.94% 11.47%
2018 2017 2016 2015
Statutorily required contribution $269,919 $228,241 $198,825 $189,591
Contributions in relation to the statutorily required contribution $269,919 $228,241 $198,825 $189,591
Contribution deficiency (excess)$0 $0 $0 $0
City's covered payroll $2,384,443 $2,016,263 $1,756,405 $1,674,832
Contributions as a percentage of covered payroll 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, 2021
Special Revenue
SVCID SVCID
Operations Capital Projects Pathway Total
Assets
Cash ($22,156) $767,519 $745,363
Receivables:
Taxes 0
Intergovernmental 0
Accounts 22,156 22,156
Due From Other Funds 0
Restricted Cash 0
Total Assets $0 $0 $767,519 $767,519
Liabilities
Accounts Payable & Accrued Expenses $3,592 $3,592
Due To Other Funds 0
Deposits Payable 0
Unearned Grant Revenue 0
Total Liabilities $0 $0 3,592 3,592
Deferred Inflows of Resources
Unavailable Tax Revenues 0
Total Deferred Inflows of Resources 0000
Fund Balances
Restricted - Special Programs 0
Restricted - Debt Service 0
Restricted - Capital Projects 763,927 763,927
Unassigned 0
Total Fund Balances 0 0 763,927 763,927
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $0 $0 $767,519 $767,519
Capital Projects Funds
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, 2021
Special Revenue
SVCID SVCID
Operations Capital Projects Pathway Total
Revenues
Taxes $0
Franchise Fees 0
Intergovernmental 0
Licenses, Permits, & Fees $190,038 190,038
Interest 1,147 1,147
Miscellaneous & Grants 2,423 2,423
Total Revenues $0 $0 193,608 193,608
Expenditures
Current Expenditures
General Government 0
Public Safety 0
Parks & Streets 0
Culture & Recreation 0
Community Infrastructure District 65,791 323,000 388,791
Capital Outlay 113,221 113,221
Debt Service - Principal 0
Debt Service - Interest 0
Total Expenditures 65,791 323,000 113,221 502,012
Excess (Deficiency) of Revenues
Over Expenditures (65,791) (323,000) 80,387 (308,404)
Other Financing Sources (Uses)
Proceeds from Bond Issuance 323,000 323,000
Owner Contributions 55,791 55,791
Transfers In 0
Transfers Out 0
Total Other Financing Sources (Uses)55,791 323,000 0 378,791
Net Change in Fund Balances (10,000) 0 80,387 70,387
Fund Balances - Beginning 10,000 0 683,540 693,540
Fund Balances - Ending $0 $0 $763,927 $763,927
Capital Projects Funds
See Auditor's Report 34
CITY OF EAGLE, IDAHO
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2021
Federal Pass-Through
Federal Grantor/ Pass-Through CFDA Entity Identifying Federal
Grantor/Program or Cluster Title Number Number Expenditures
US Dept of Transportation
Passed Through Idaho Transportation Dept:
Highway Planning & Construction Cluster:
Highway Planning & Construction 20.205 95537 $247,302
Total Highway Planning & Construction Cluster 247,302
Total US Dept of Transportation 247,302
US Dept of Treasury
Passed Through Idaho Office of the Governor
COVID-19 - Coronavirus Relief Fund 21.019 20-1892-0-1-806 894,655
Total US Dept of Treasury 894,655
US Dept of Homeland Security
Passed Through Idaho Dept of Military Division
COVID-19 - Disaster Grants Public Assistance 97.036 FEMA-4342 DR-ID 320,382
Total US Dept of Homeland Security 320,382
Total Expenditures of Federal Awards $1,462,339
NOTES:
A.Basisof Presentation -The accompanying scheduleof expenditures of federal awards (theschedule)includes the federal award
activity of the City under programs of the federal governmentfor the year ended September30, 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.Because the schedule presents only a selected portion of the operations of the City, it is not intended to and does not
present the financial position, changes in net position, or cash flows of the City.
B. Summary of Significant Accounting Policies - Expenditures reported on the schedule are reported 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. The City has not elected to use the 10 percent de minimis indirec
cost rate as allowed under the Uniform Guidance.
See Auditor's Report 35
36
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, 2021, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements, and have
issued our report thereon dated December 30, 2021.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control that might
be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses 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
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
37
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
December 30, 2021
38
11501 Highway 95, Payette, Idaho 83661 | www.qcpas.com | info@qcpas.com | 208-642-1417
Independent Auditor’s Report on Compliance for Each Major Program and on
Internal Control Over Compliance Required by the Uniform Guidance
Honorable Mayor and City Council
City of Eagle, Idaho
Report on Compliance for Each Major Federal Program
We have audited the City of Eagle, Idaho’s (the City’s) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect on
each of 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
Our responsibility is to express an opinion on compliance for each of the City’s major federal programs
based on our audit of the types of compliance requirements referred to above. We conducted our audit of
compliance in accordance with auditing standards generally accepted in the United States of America; the
standards applicable to financial audits contained in Government Auditing Standards, issued by the
Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we 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 we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal
program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City 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.
39
Report on Internal Control Over Compliance
Management of the City 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, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on a 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 Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness
of internal control over compliance. Accordingly, we 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 combination of deficiencies, in internal control over compliance, such that there is a reasonable
possibility that material noncompliance with a type of compliance requirement of a federal program will
not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control
over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with
a type of compliance requirement of a federal program that is less severe than a material weakness in
internal control over compliance, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the 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. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of this report in internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
Quest CPAs PLLC
Payette, Idaho
December 30, 2021
CITY OF EAGLE, IDAHO
Schedule of Findings and Questioned Costs
Year Ended September 30, 2021
40
SUMMARY OF AUDITOR’S RESULTS
FINANCIAL STATEMENTS
Type of auditor’s report being issued: Unmodified
Internal control over financial reporting:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported
Noncompliance material to the financial statements noted? No
FEDERAL AWARDS
Internal control over major programs:
Material weakness(es) identified? No
Significant deficiency(ies) identified? None reported
Type of auditor’s report issued on compliance for major programs: Unmodified
Any audit findings that are required to be reported in accordance
with 2 CFR section 200.516(a)? No
Major program identification:
a. Highway Planning & Construction Cluster – CFDA #20.205
b. COVID-19 - Coronavirus Relief Fund – CFDA #21.019
Dollar threshold used to distinguish between type A and B programs: $750,000
Auditee qualified as a low-risk auditee? No