Finance - Annual Audit - 09/30/2023
City of Eagle, Idaho
Year Ended September 30, 2023
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 ............................
28
Schedule of Employer’s Share of Net Pension Asset and Liability and Schedule of Employer
Contributions ...................................................................................................................................
30
Supplementary Information
Schedule of Expenditures of Federal Awards..................................................................................
31
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......................................................................................................
32
Independent Auditor’s Report on Compliance for Each Major Program and on Internal Control
Over Compliance Required by the Uniform Guidance ...................................................................
34
Schedule of Findings and Questioned Costs.................................................................................... 37
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Independent Auditor’s Report
Honorable Mayor and City Council
City of Eagle, Idaho
Report on the Financial Statements
Opinions
We have audited the financial statements of the governmental activities, the business-type activities, the
discretely presented component units, 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, 2023, and the related notes
to the financial statements, which collectively comprise the City’s basic financial statements as listed in the
table of contents.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City as
of September 30, 2023, and the respective changes in financial position, and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the United
States of America.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Statements section of our
report. We are required to be independent of the City and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence
we have obtained is sufficient and appropriate to provide a basis for our audit opinions.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes the
design, implementation, and maintenance of internal control relevant to the preparation and fair presentation
of financial statements that are free from material misstatement, whether due to fraud or error.
In preparing the financial statements, management is required to evaluate whether there are conditions or
events, considered in the aggregate, that raise substantial doubt about the City’s ability to continue as a
going concern for twelve months beyond the financial statement date, including any currently known
information that may raise substantial doubt shortly thereafter.
2
Auditor’s Responsibility for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is
not a guarantee that an audit conducted in accordance with generally accepted auditing standards and
Government Auditing Standards will always detect a material misstatement when it exists. The risk of not
detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal
control. Misstatements are considered material if there is a substantial likelihood that individually or in the
aggregate, they would influence the judgment made by a reasonable user based on the financial statements.
In performing an audit in accordance with generally accepted auditing standards and Government Auditing
Standards, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material misstatement of the financial statements, whether due to
fraud or error, and design and perform audit procedures responsive to those risks. Such procedures
include examining, on a test basis, evidence regarding the amounts and disclosures in the financial
statements.
• Obtain an understanding of internal control relevant to the audit in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the City’s internal control. Accordingly, no such opinion is expressed.
• Evaluate the appropriateness of accounting policies used and the reasonableness of significant
accounting estimates made by management, as well as evaluate the overall presentation of the
financial statements.
• Conclude whether, in our judgment, there are conditions or events, considered in the aggregate,
that raise substantial doubt about the City’s ability to continue as a going concern for a reasonable
period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control-related matters
that we identified during the audit.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the budgetary
comparison schedules and schedule of employer’s share of net pension asset and liability and schedule of
employer contributions listed in the table of contents be presented to supplement the basic financial
statements. Such information, although not part of the basic financial statements, is required by the
Governmental Accounting Standards Board who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, and historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency
with management’s responses to our inquiries, the basic financial statements, and other knowledge we
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obtained during our audit of the basic financial statements. We do not express an opinion or provide any
assurance on the information because the limited procedures do not provide us with sufficient evidence to
express an opinion or provide any assurance.
Management has not included the management’s discussion and analysis information that accounting
principles generally accepted in the United States of America require to be presented to supplement the
basic financial statements. Such information, although not part of the basic financial statements, is required
by the Governmental Accounting Standards Board, who considers it to be an essential part of financial
reporting for placing the basic financial statements in an appropriate operational, economic, and historical
context. Our opinion on the basic financial statements is not affected by not including this information.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City’s basic financial statements. The accompanying schedule of expenditures of federal
awards, 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, is presented for purposes of
additional analysis and are not a required part of the basic financial statements. Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and
other records used to prepare the basic financial statements. The information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional procedures,
including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the basic financial statements or the basic financial statements themselves, and other
additional procedures in accordance with auditing standards generally accepted in the United States of
America. In our opinion, the schedule of expenditures of federal awards is fairly stated in all material
respects in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated February 29,
2024, 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
February 29, 2024
CITY OF EAGLE, IDAHO
Statement of Net Position
September 30, 2023
Governmental Business-Type Total Primary Component
Activities Activities Government Units
Assets
Current Assets
Cash & Investments $14,224,753 $5,865,868 $20,090,621 $62,841,722
Receivables:
Taxes 23,651 23,651
Intergovernmental 922,768 922,768
Accounts 71,740 157,157 228,897 11,108
Total Current Assets 15,242,912 6,023,025 21,265,937 62,852,830
Noncurrent Assets
Restricted Cash & Investments 1,560,030 2,505,114 4,065,144
Accumulated Community Infrast Costs 0 56,729,463
Nondepreciable Capital Assets 17,772,651 93,250 17,865,901
Depreciable Net Capital Assets 22,031,281 16,234,650 38,265,931
Total Noncurrent Assets 41,363,962 18,833,014 60,196,976 56,729,463
Total Assets 56,606,874 24,856,039 81,462,913 119,582,293
Deferred Outflows of Resources
Pension Items 1,466,508 157,352 1,623,860
Total Deferred Outflows of Resources 1,466,508 157,352 1,623,860 0
Total Assets and Deferred Outflows
of Resources $58,073,382 $25,013,391 $83,086,773 $119,582,293
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses $681,099 $318,218 $999,317 $65,536
Deposits Payable 1,560,030 96,250 1,656,280 30,050
Unearned Grant Revenue 941,149 941,149
Accrued Interest 1,933 1,933 378,869
Long-Term Liabilities, Current 412,051 131,362 543,413 50,136
Total Current Liabilities 3,594,329 547,763 4,142,092 524,591
Noncurrent Liabilities
Long-Term Liabilities, Noncurrent 3,912,053 397,724 4,309,777 128,601,228
Total Noncurrent Liabilities 3,912,053 397,724 4,309,777 128,601,228
Total Liabilities 7,506,382 945,487 8,451,869 129,125,819
Deferred Inflows of Resources
Impact Fee Credits 7,876,000 7,876,000
Pension Items 0 0 0
Total Deferred Inflows of Resources 7,876,000 0 7,876,000 0
Total Liabilities and Deferred Inflows
of Resources 15,382,382 945,487 16,327,869 129,125,819
Net Position
Net Investment in Capital Assets 31,622,345 16,325,967 47,948,312
Restricted - Special Programs 134,658 134,658
Restricted - Debt Service 120,892 120,892 12,463,327
Restricted - Capital Projects 5,678,073 2,287,972 7,966,045 50,363,901
Restricted - Accum Comm Infrast Costs 0 56,729,463
Unrestricted 5,255,924 5,333,073 10,588,997 (129,100,217)
Total Net Position 42,691,000 24,067,904 66,758,904 (9,543,526)
Total Liabilities and Deferred Inflows
of Resources and Net Position $58,073,382 $25,013,391 $83,086,773 $119,582,293
See Accompanying Notes 4
CITY OF EAGLE, IDAHO
Statement of Activities
Year Ended September 30, 2023
Operating Capital
Charges For Grants And Grants And Net (Expense)
Functions/Programs Expenses Services Contributions Contributions Revenue
Governmental Activities
Current Expenditures
General Government $5,022,393 $1,538,465 ($3,483,928)
Public Safety 3,639,061 1,114,722 (2,524,339)
Parks, Pathways, & Streets 2,018,530 618,319 (1,400,211)
Culture & Recreation 2,295,731 703,231 (1,592,500)
Debt Service - Interest 8,534 (8,534)
Capital Assets 1,090,564 $4,101,944 3,011,380
Total Governmental Activities 14,074,813 3,974,737 $0 4,101,944 (5,998,132)
Business-Type Activities
Water Services 1,467,454 2,191,704 1,326,930 2,051,180
Fiber Services 351,264 (351,264)
Total Business-Type Activities 1,818,718 2,191,704 0 1,326,930 1,699,916
Total Primary Government $15,893,531 $6,166,441 $0 $5,428,874 ($4,298,216)
Component Units
Spring Valley CID No. 1 $4,683,502 $106,380 ($4,577,122)
Avimor CID No. 1 191,264 (191,264)
Total Component Units 4,874,766 $0 106,380 $0 (4,768,386)
Governmental Business-Type Total Primary Component
Changes in Net Position Activities Activities Government Units
Net (Expense) Revenue ($5,998,132)$1,699,916 ($4,298,216)($4,768,386)
General Revenues
Taxes 4,540,370 4,540,370 50,064
Special Assessments 0 155,106
Franchise Fees 1,203,122 1,203,122
Intergovernmental 4,302,464 4,302,464
Interest 274,860 146,243 421,103 3,673,647
Other Revenue (Expense)615,435 615,435
Pension Revenue (Expense)(1,212,899)(130,141)(1,343,040)
Transfers (715,007)715,007 0
Total 9,008,345 731,109 9,739,454 3,878,817
Change in Net Position 3,010,213 2,431,025 5,441,238 (889,569)
Net Position - Beginning - As Previously Stated 103,378,495
Restatement - See Note I (112,032,452)
Net Position - Beginning - As Restated 39,680,787 21,636,879 61,317,666 (8,653,957)
Net Position - Ending $42,691,000 $24,067,904 $66,758,904 ($9,543,526)
Program Revenues
See Accompanying Notes 5
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2023
Page 1 of 3
Debt
General Library Service Park
Fund Fund Fund Fund
Assets
Cash & Investments $7,399,384 $69,023 $404,905
Receivables:
Taxes 22,575 1,076
Intergovernmental 922,768
Accounts 69,868 1,872
Due From Other Funds
Restricted Cash & Investments 1,560,030
Total Assets $9,974,625 $71,971 $0 $404,905
Liabilities
Accounts Payable & Accrued Expenses $589,250 $70,923 $280
Due To Other Funds
Deposits Payable 1,560,030
Unearned Grant Revenue
Total Liabilities 2,149,280 70,923 $0 280
Deferred Inflows of Resources
Unavailable Tax Revenues 20,336 1,048
Total Deferred Inflows of Resources 20,336 1,048 0 0
Fund Balances
Restricted - Special Programs 18,460
Restricted - Debt Service
Restricted - Capital Projects 404,625
Unassigned 7,786,549
Total Fund Balances 7,805,009 0 0 404,625
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $9,974,625 $71,971 $0 $404,905
See Accompanying Notes 6
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2023
Page 2 of 3
Capital Nonmajor Fund Total
Projects Pathway Police Impact Governmental
Fund Fund Fees Fund Funds
Assets
Cash & Investments $6,092,948 $142,295 $116,198 $14,224,753
Receivables:
Taxes 23,651
Intergovernmental 922,768
Accounts 71,740
Due From Other Funds 0
Restricted Cash & Investments 1,560,030
Total Assets $6,092,948 $142,295 $116,198 $16,802,942
Liabilities
Accounts Payable & Accrued Expenses $20,646 $681,099
Due To Other Funds 0
Deposits Payable 1,560,030
Unearned Grant Revenue 941,149 941,149
Total Liabilities 961,795 0 0 3,182,278
Deferred Inflows of Resources
Unavailable Tax Revenues 21,384
Total Deferred Inflows of Resources 0 0 0 21,384
Fund Balances
Restricted - Special Programs 116,198 134,658
Restricted - Debt Service 0
Restricted - Capital Projects 5,131,153 142,295 5,678,073
Unassigned 7,786,549
Total Fund Balances 5,131,153 142,295 116,198 13,599,280
Total Liabilities and Deferred Inflows
of Resources and Fund Balances $6,092,948 $142,295 $116,198 $16,802,942
See Accompanying Notes 7
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2023
Page 3 of 3
Reconciliation of Total Governmental Fund Balances to Net Position
of Governmental Activities
Total Governmental Fund Balances $13,599,280
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.39,803,932
Certain receivables are not available to pay for current period
expenditures and therefore are deferred in the funds.21,384
Long-term liabilities are not due and payable in the current period and
therefore are not reported in the funds.(4,324,104)
Deferred inflow impact fee credits are not due and payable in the
current period and therefore are not reported in the funds.(7,876,000)
Deferred outflows/inflows related to pensions are not due and payable
in the current period and therefore are not reported in the funds.1,466,508
Net Position of Governmental Activities $42,691,000
See Accompanying Notes 8
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2023
Page 1 of 3
Debt
General Library Service Park
Fund Fund Fund Fund
Revenues
Taxes $4,536,266
Franchise Fees 1,203,122
Intergovernmental 4,302,464
Licenses, Permits, & Fees 3,537,809 $14,231 $315,548
Interest 185,733 846 3,895
Miscellaneous & Grants 425,107 4,406
Total Revenues 14,190,501 19,483 $0 319,443
Expenditures
Current Expenditures
General Government 5,141,699
Public Safety 3,725,507
Parks, Pathways, & Streets 2,066,480
Culture & Recreation 997,420 1,352,846
Capital Outlay 135,445 215,403 1,867,564
Debt Service - Principal 85,000
Debt Service - Interest 18,825
Total Expenditures 12,066,551 1,568,249 103,825 1,867,564
Excess (Deficiency) of Revenues
Over Expenditures 2,123,950 (1,548,766)(103,825)(1,548,121)
Other Financing Sources (Uses)
Transfers In 586,716 103,825
Transfers Out (1,271,994)
Total Other Financing Sources (Uses)(1,271,994)586,716 103,825 0
Net Change in Fund Balances 851,956 (962,050)0 (1,548,121)
Fund Balances - Beginning 6,953,053 962,050 0 1,952,746
Fund Balances - Ending $7,805,009 $0 $0 $404,625
See Accompanying Notes 9
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2023
Page 2 of 3
Capital Nonmajor Fund Total
Projects Pathway Police Impact Governmental
Fund Fund Fees Fund Funds
Revenues
Taxes $4,536,266
Franchise Fees 1,203,122
Intergovernmental 4,302,464
Licenses, Permits, & Fees $72,049 $35,100 3,974,737
Interest $80,798 1,650 1,938 274,860
Miscellaneous & Grants 4,287,866 4,717,379
Total Revenues 4,368,664 73,699 37,038 19,008,828
Expenditures
Current Expenditures
General Government 5,141,699
Public Safety 3,725,507
Parks, Pathways, & Streets 2,066,480
Culture & Recreation 2,350,266
Capital Outlay 3,906,065 786,430 6,910,907
Debt Service - Principal 85,000
Debt Service - Interest 18,825
Total Expenditures 3,906,065 786,430 0 20,298,684
Excess (Deficiency) of Revenues
Over Expenditures 462,599 (712,731)37,038 (1,289,856)
Other Financing Sources (Uses)
Transfers In 581,453 1,271,994
Transfers Out (715,007)(1,987,001)
Total Other Financing Sources (Uses)(133,554)0 0 (715,007)
Net Change in Fund Balances 329,045 (712,731)37,038 (2,004,863)
Fund Balances - Beginning 4,802,108 855,026 79,160 15,604,143
Fund Balances - Ending $5,131,153 $142,295 $116,198 $13,599,280
See Accompanying Notes 10
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2023
Page 3 of 3
Reconciliation of the Statement of Revenues,Expenditures,and
Changes in Fund Balances -Governmental Funds to the Statement of
Activities
Net Change in Fund Balances - Total Governmental Funds ($2,004,863)
Amounts reported for governmental activities in the statement of
activities are different because:
Government funds report capital outlays as expenditures. However, in
the statement of activities the cost of those assets is allocated over their
estimated useful lives as depreciation expense or allocated over the
appropriate term as amortization expense. This is the excess of capital
outlays over (under) depreciation/amortization expense in the current
period.13,696,343
Revenues in the statement of activities that do not provide current
financial resources are deferred in the funds.4,104
Repayment of long-term liability principal is an expenditure in the
governmental funds, but the repayment reduces long-term liabilities in
the statement of net position.85,000
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.(182,945)
Remittance of impact fee credits is an expenditure in the governmental
funds, but the remittance reduces the deferred inflow inpact fee credits
in the statement of net position.(7,876,000)
Changes in net pension asset/liability and related pension deferred
outflows/inflows do not provide or require current financial resources
and therefore are not reflected in the funds.(721,717)
Change in Net Position of Governmental Activities $3,010,213
See Accompanying Notes 11
CITY OF EAGLE, IDAHO
Statement of Net Position - Proprietary Funds
September 30, 2023
Total
Water Fiber Enterprise
Fund Fund Funds
Assets
Current Assets
Cash & Investments $4,225,793 $1,640,075 $5,865,868
Receivables:
Accounts 157,157 157,157
Total Current Assets 4,382,950 1,640,075 6,023,025
Noncurrent Assets
Restricted Cash & Investments 2,505,114 2,505,114
Nondepreciable Capital Assets 93,250 93,250
Depreciable Net Capital Assets 13,171,476 3,063,174 16,234,650
Total Noncurrent Assets 15,769,840 3,063,174 18,833,014
Total Assets 20,152,790 4,703,249 24,856,039
Deferred Outflows of Resources
Pension Items 128,610 28,742 157,352
Total Deferred Outflows of Resources 128,610 28,742 157,352
Total Assets and Deferred Outflows of Resources $20,281,400 $4,731,991 $25,013,391
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses $103,350 $214,868 $318,218
Deposits Payable 96,250 96,250
Accrued Interest 1,933 1,933
Long-Term Liabilities, Current 131,362 131,362
Total Current Liabilities 332,895 214,868 547,763
Noncurrent Liabilities
Long-Term Liabilities, Noncurrent 325,075 72,649 397,724
Total Noncurrent Liabilities 325,075 72,649 397,724
Total Liabilities 657,970 287,517 945,487
Deferred Inflows of Resources
Pension Items 0 0
Total Deferred Inflows of Resources 0 0 0
Total Liabilities and Deferred Inflows of Resources 657,970 287,517 945,487
Net Position
Net Investment in Capital Assets 13,262,793 3,063,174 16,325,967
Restricted - Debt Service 120,892 120,892
Restricted - Capital Projects 2,287,972 2,287,972
Unrestricted 3,951,773 1,381,300 5,333,073
Total Net Position 19,623,430 4,444,474 24,067,904
Total Liabilities and Deferred Inflows of Resources and Net Position $20,281,400 $4,731,991 $25,013,391
See Accompanying Notes 12
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Funds
Year Ended September 30, 2023
Total
Water Fiber Enterprise
Fund Fund Funds
Operating Revenues
Service Fees $1,845,670 $1,845,670
STL & WCE Fees 179,600 179,600
Hook-Up Fees 89,275 89,275
Miscellaneous 77,159 77,159
Total Operating Revenues 2,191,704 $0 2,191,704
Operating Expenses
Personnel 433,990 123,207 557,197
Operations & Maintenance 354,601 228,057 582,658
Total Operating Expenses 788,591 351,264 1,139,855
Operating Income (Loss) Before Depreciation 1,403,113 (351,264)1,051,849
Depreciation Expense 668,205 668,205
Operating Income (Loss)734,908 (351,264)383,644
Nonoperating Revenues (Expenses)
Interest Income 125,674 20,569 146,243
Interest (Expense)(10,658)(10,658)
Pension Revenue (Expense)(106,369)(23,772)(130,141)
Total Nonoperating Revenue (Expenses)8,647 (3,203)5,444
Income (Loss) Before Contributions & Transfers 743,555 (354,467)389,088
Capital Contributions 1,326,930 1,326,930
Transfers In 715,007 715,007
Transfers Out 0
Change in Net Position 2,070,485 360,540 2,431,025
Net Position - Beginning 17,552,945 4,083,934 21,636,879
Net Position - Ending $19,623,430 $4,444,474 $24,067,904
See Accompanying Notes 13
CITY OF EAGLE, IDAHO
Statement of Cash Flows - Proprietary Funds
Year Ended September 30, 2023
Total
Water Fiber Enterprise
Fund Fund Funds
Cash Flows From Operations
Receipts from Customers $2,181,302 $2,181,302
Payments for Personnel (478,995)(103,072)(582,067)
Payments for Goods & Services (380,769)(13,189)(393,958)
Cash Provided (Used) By Operations 1,321,538 ($116,261)1,205,277
Cash Flows From Noncapital Financing
Transfers (to) From Other Funds 715,007 715,007
Cash Provided (Used) By Noncapital Financing 0 715,007 715,007
Cash Flows From Capital & Related Financing
Acquisition of Capital Assets (54,535)(1,369,889)(1,424,424)
Interest Paid on Debt (630,117)(630,117)
Principal Paid on Debt (19,883)(19,883)
Cash Provided (Used) By Capital & Related Financing (704,535)(1,369,889)(2,074,424)
Cash Flows From Investments
Interest Income 125,674 20,569 146,243
Cash Provided (Used) By Investments 125,674 20,569 146,243
Change in Cash & Investments 742,677 (750,574)(7,897)
Cash & Investments - Beginning 5,988,230 2,390,649 8,378,879
Cash & Investments - Ending $6,730,907 $1,640,075 $8,370,982
Cash & Investments Reconciliation
Cash & Investments $4,225,793 $1,640,075 $5,865,868
Restricted Cash & Investments 2,505,114 0 2,505,114
Total Cash & Investments $6,730,907 $1,640,075 $8,370,982
Reconciliation of Operating Income (Loss) to Cash
Provided (Used) By Operations
Operating Income (Loss)$734,908 ($351,264)$383,644
Adjustments to Reconcile Operating Income (Loss) to
Cash Provided (Used) by Operations:
Depreciation 668,205 0 668,205
PERSI Adjustment (49,196)20,135 (29,061)
Changes in Assets & Liabilities:
Receivables (3,702)(3,702)
Accounts Payable & Accrued Expenses (26,168)214,868 188,700
Deposits Payable (6,700)(6,700)
Compensated Absences 4,191 4,191
Cash Provided (Used) By Operations $1,321,538 ($116,261)$1,205,277
Noncash Capital & Related Financing Activities:
Capital Contributions from Developers $1,326,930 $0 $1,326,930
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 two component units, the Spring
Valley Community Infrastructure District No. 1 (SVCID) and Avimor Community Infrastructure District
No. 1 (ACID). The SVCID and ACID board of directors are appointed by and comprised of City council
members. In addition, SVCID and ACID operational responsibilities are performed by a management team
that is separate from the City’s management. As such, the SVCID and ACID qualify as discretely presented
component units. Separate financial statements and note disclosures for the SVCID and ACID 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
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.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
16
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, the capital projects fund, used to account for the maintenance and
betterment of capital assets, and the pathway fund, used to account for the maintenance and betterment of
pathways and related facilities.
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.
Fiber Fund – The fiber fund accounts for the revenues earned and expenses incurred in providing fiber
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.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
17
The governmental funds financial statements are presented on the modified accrual basis of accounting.
Under the modified accrual basis of accounting, revenues are recorded when susceptible to accrual (when
they become both measurable and available). "Measurable" means the amount of the transaction can be
determined and "available" means collectible within the current period or within thirty days after year end.
Expenditures are recorded when the related fund liability is incurred. Exceptions to this general rule include
principal and interest on long-term debt which, if any, are recognized when due and payable.
Cash and Investments – Nearly all the cash and investment balances of the City’s funds are pooled for
investment purposes. The individual funds’ portions of the pooled cash and investments are reported in
each fund as cash and investments. Interest earned on pooled cash and investments is allocated to the various
funds based on each fund’s respective investment balance. Investments are measured using the market
approach and include the local government investment pool, reported and measured at amortized cost
following the provisions of GASB 79 which provide for consistent measurement of investment value
amongst pool participants.
For purposes of the statement of cash flows, the City considers all investments (including restricted cash
and investments) available for immediate withdrawal or with maturities of three months or less to be cash
and cash equivalents (referred to as cash and investments).
Receivables – Receivables are reported net of any estimated uncollectible amounts.
Inventories – Material supplies on hand at year end are stated at the lower of cost or net realizable value
using the first-in, first-out method.
Capital Assets and Depreciation – Capital assets purchased or acquired with an original cost of $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.
Leases/SBITAs and Amortization – Material long-term leases and subscription-based information
technology arrangements (SBITAs) are reported in accordance with the provisions of GASB 87 Leases and
GASB 96 SBITAs. When incurred, amortization over the appropriate lease or SBITA term is recorded using
the straight-line method.
Compensated Absences – The City provides certain compensated absences to its employees. The
estimated amount of compensation for future amounts is recorded as a liability in the accompanying
financial statements. Compensated absences will be paid by the fund in which the employee works.
Pensions – For purposes of measuring the net pension asset/liability and pension revenue (expense),
information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan
(the Base Plan) and 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. Pension obligations will be paid by the fund in which
the employee works.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
18
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.
Fund Balance Classifications – Restrictions of the fund balance indicate portions that are legally or
contractually segregated for a specific future use. Nonspendable portions of the fund balance are those
amounts that cannot be spent because they are in a nonspendable form or because they are legally or
contractually required to be maintained intact. Committed portions represent amounts that can only be used
for specific purposes pursuant to formal action (i.e. board approval) of the reporting entity’s governing
body. Assigned portions represent amounts that are constrained by the government’s intent to be used for
a specific purpose. Remaining fund balances are reported as unassigned. When expenditures are incurred
that qualify for either restricted or unrestricted resources, the City first utilizes restricted resources. When
expenditures are incurred that qualify for either committed or assigned or unassigned resources, the City
first utilizes committed resources then assigned resources before using unassigned resources.
Property Taxes – The City is responsible for levying property taxes, but the taxes are collected by the
respective county. Taxes are levied by the second Monday in September for each calendar year. Taxes are
due in two installments – December 20th and June 20th. A lien is filed on real property three years from the
date of delinquency.
Contingent Liabilities – Amounts received or receivable from grantor agencies are subject to audit and
adjustment by grantor agencies. Any disallowed claims, including amounts already collected, may
constitute a liability of the applicable funds. The amount, if any, of expenditures which may be disallowed
by the grantor cannot be determined at this time although the City expects such amounts, if any, to be
immaterial.
Interfund Activity – Interfund activity is reported either as loans, services provided, reimbursements, or
transfers. Loans are reported as interfund receivables and payables as appropriate and are subject to
elimination upon consolidation. Services provided, deemed to be at market or near market rates, are treated
as revenues and expenditures/expenses. Reimbursements are when one fund incurs a cost, charges the
appropriate benefiting fund, and reduces its related cost as a reimbursement. All other interfund transactions
are treated as transfers.
Use of Estimates – The preparation of financial statements in conformity with accounting principles
generally accepted in the United States of America requires management to make estimates and
assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ
from those estimates.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
19
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.
B. CASH AND INVESTMENTS
Cash and investments consist of the following at year end:
Governmental Proprietary
Funds Funds Total
Cash - Deposits $8,964,135 $837,965 $9,802,100
Investments - Local Gov't Investment Pool 6,820,648 7,533,017 14,353,665
Total $15,784,783 $8,370,982 $24,155,765
Deposits – At year end, the carrying amounts of the City's deposits were $9,802,100 and the bank balances
were $10,756,689. Of the bank balances, $302,113 was insured and $10,454,576 was collateralized.
Considerations for interest rate risk and credit rate risk relating to investments are shown below.
Interest rate risk:
Investment Type Less Than 1 Total
Local Gov't Invest Pool $14,353,665 $14,353,665
Total $14,353,665 $14,353,665
Investment Maturity
Schedule (In Years)
Credit rate risk:
Investment Type Not Rated Total
Local Gov't Invest Pool $14,353,665 $14,353,665
Total $14,353,665 $14,353,665
Investment Rating Schedule
Investments – State statutes authorize government entities to invest in certain bonds, notes, accounts,
investment pools, and other obligations of the state, U.S. Treasury, and U.S. corporations pursuant to Idaho
Code 67-1210 and 67-1210A. These statutes are designed to help minimize the custodial risk that deposits
may not be returned in the event of the failure of the issuer or other counterparty, interest rate risk resulting
from fair value losses arising from rising interest rates, or credit risks that an issuer or other counterparty
will not fulfill its obligations. The City's investment policy complies with state statutes.
The local government investment pool is managed by the state treasurer's office and is invested in
accordance with state statutes and regulations. The local government investment pool is not registered with
CITY OF EAGLE, IDAHO
Notes to Financial Statements
20
the SEC and is a short-term investment pool. The state treasurer’s office investment policy for the local
government investment pool includes the following three primary objectives in order of priority: safety,
liquidity, and yield. Participants have overnight availability to their funds, up to $10 million. Withdrawals
of $10 million or more require three business days’ notification. More information on the local
governmental investment pool including regulatory information, ratings, and risk information can be found
at www.sto.idaho.gov.
Restricted Cash and Investments – Restricted cash and investments at year end is cash and investments
set aside because its use is limited by City ordinance, accounting policies, and loan covenants. In the general
fund, cash and investments 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 and investments within its water fund to equal one annual
loan payment. Management is not aware of any violations of this covenant.
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 $6,943,837 $10,377,307 $17,321,144
Artwork/Collectibles 132,917 132,917
Construction in Progress 318,590 318,590
Total 7,395,344 10,377,307 $0 17,772,651
Depreciable Capital Assets
Buildings 10,210,279 10,210,279
Improvements 15,743,928 3,765,919 19,509,847
Equipment 6,028,610 643,681 6,672,291
Subtotal 31,982,817 4,409,600 0 36,392,417
Accumulated Depreciation
Buildings 2,137,252 204,039 2,341,291
Improvements 6,291,498 616,247 6,907,745
Equipment 4,841,822 270,278 5,112,100
Subtotal 13,270,572 1,090,564 0 14,361,136
Total 18,712,245 3,319,036 0 22,031,281
Net Capital Assets $26,107,589 $13,696,343 $0 $39,803,932
Depreciation expense of $1,090,564 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
Improvements 15,633,373 1,326,930 16,960,303
Equipment 3,194,502 1,424,424 4,618,926
Subtotal 19,387,160 2,751,354 0 22,138,514
Accumulated Depreciation
Buildings 183,637 11,186 194,823
Improvements 4,033,182 557,893 4,591,075
Equipment 1,018,840 99,126 1,117,966
Subtotal 5,235,659 668,205 0 5,903,864
Total 14,151,501 2,083,149 0 16,234,650
Net Capital Assets $14,244,751 $2,083,149 $0 $16,327,900
Depreciation expense of $668,205 was charged to the water services program.
D. LONG-TERM LIABILITIES
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 2026, secured by future taxes, paid through the debt service fund $285,000
Total $285,000
Maturities on the bonds – governmental activities – are estimated as follows:
Year Ended Principal Interest
9/30/24 $90,000 $14,250
9/30/25 95,000 9,750
9/30/26 100,000 5,000
Total $285,000 $29,000
CITY OF EAGLE, IDAHO
Notes to Financial Statements
22
Water Revenue Loan - At year end, the City’s water revenue loan was as follows:
Business-Type Activities:
Water revenue loan -DEQ,due in semiannual payments of $90,918 with interest
at 3.25% through 2024, secured by future user fees, paid through the water fund $118,942
Total $118,942
Maturities on the water revenue loan – business-type activities – are estimated as follows:
Year Ended Principal Interest
9/30/24 $118,942 $1,950
Total $118,942 $1,950
Changes in long-term liabilities are as follows:
Beginning Ending Due Within
Description Balance Increases Decreases Balance One Year
Governmental Act.
2013 GO Bonds $370,000 $85,000 $285,000 $90,000
Bond Premium 30,878 10,291 20,587 10,291
Comp. Absences 128,815 $182,945 311,760 311,760
Net Pension Liability 3,230,169 476,588 3,706,757 -
Subtotal 3,759,862 659,533 95,291 4,324,104 412,051
Business-Type Act.
Water Revenue Loan 749,059 630,117 118,942 118,942
Comp. Absences 8,229 4,191 12,420 12,420
Net Pension Liability 296,214 101,510 397,724 -
Subtotal 1,053,502 105,701 630,117 529,086 131,362
Total $4,813,364 $765,234 $725,408 $4,853,190 $543,413
Interest and related costs during the year amounted to $8,534 and $10,658 and were charged to the debt
service – interest and water services programs, respectively.
E. 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.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
23
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, 2023 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 $514,501 for the year ended September 30, 2023.
Pension asset/liabilities, pension revenue (expense), and deferred outflows/inflows of resources related to
pensions
At September 30, 2023, the City reported a liability for its proportionate share of the net pension liability.
The net pension liability was measured as of June 30, 2023, 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, 2023, the City’s
proportion was 0.10285191%.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
24
For the year ended September 30, 2023, the City recognized pension revenue (expense) of ($1,343,040).
At September 30, 2023, 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 $703,539
Changes in assumptions or other inputs 406,430
Net difference between projected and actual earnings on pension plan
investments 385,266
Employer contributions subsequent to the measurement date 128,625
Total $1,623,860 $0
$128,625 reported as deferred outflows of resources related to pensions resulting from City contributions
made subsequent to the measurement date will be recognized as an adjustment to the pension revenue
(expense) in the year ending September 30, 2024.
The average of the expected remaining service lives of all employees that are provided with pensions
through the System (active and inactive employees) determined at July 1, 2023 the beginning of the
measurement period ended June 30, 2022 is 4.6 and 4.4 for the measurement period June 30, 2023.
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
9/30/24 ($531,738)
9/30/25 (249,878)
9/30/26 (777,333)
9/30/27 63,715
Total ($1,495,235)
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
25
The total pension liability in the June 30, 2023 actuarial valuation was determined using the following
actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.30%
Salary increases including inflation 3.05%
Investment rate of return, net of investment expenses 6.35%
Cost-of-living adjustments 1.00%
Contributing members, service retirement members, and beneficiaries
General Employees and All Beneficiaries ‐ Males Pub‐2010 General Tables, increased 11%
General Employees and All Beneficiaries ‐ Females Pub‐2010 General Tables, increased 21%
Teachers ‐ Males Pub‐2010 Teacher Tables, increased 12%
Teachers ‐ Females Pub‐2010 Teacher Tables, increased 21%
Fire & Police ‐ Males Pub‐2010 Safety Tables, increased 21%
Fire & Police ‐ Females Pub‐2010 Safety Tables, increased 26%
5% of Fire & Police active member deaths are
assumed to be duty related. This assumption was
adopted July 1, 2021.
Disabled Members ‐ Males Pub‐2010 Disabled Tables, increased 38%
Disabled Members ‐ Females Pub‐2010 Disabled Tables, increased 36%
An experience study was performed for the period July 1, 2015 through June 30, 2020 which reviewed all
economic and demographic assumptions other than mortality. The total pension liability as of June 30, 2023
is based on the results of an actuarial valuation date of July 1, 2023.
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 2023.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
26
Target Long-Term Expected
Asset Class Allocation Real Rate of Return
Cash 0%0.00%
Large Cap 18%4.50%
Small/Mid Cap 11%4.70%
International Equity 15%4.50%
Emerging Markets Equity 10%4.90%
Domestic Fixed 20%-0.25%
TIPS 10%-0.30%
Real Estate 8%3.75%
Private Equity 8%6.00%
Discount rate
The discount rate used to measure the total pension liability was 6.35%. The projection of cash flows used
to determine the discount rate assumed that contributions from plan members will be made at the current
contribution rate. Based on these assumptions, the pension plans’ net position was projected to be available
to make all projected future benefit payments of current plan members. Therefore, the long-term expected
rate of return on pension plan investments was applied to all periods of projected benefit payments to
determine the total pension asset. The long-term expected rate of return was determined net of pension plan
investment expense but without reduction for administrative expense.
Sensitivity of the City's proportionate share of the net pension liability to changes in the discount rate.
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 6.35 percent, as well as what the City's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1-percentage-point lower or 1-percentage-point
higher than the current rate:
Current
1% Decrease Discount Rate 1% Increase
(5.35%)(6.35%)(7.35%)
City's proportionate share of the net pension liability $7,382,078 $4,104,481 $1,425,660
Pension plan fiduciary net position
Detailed information about the pension plan's fiduciary net position is available in the separately issued
PERSI financial report.
PERSI issues a publicly available financial report that includes financial statements and the required
supplementary information for PERSI. That report may be obtained on the PERSI website at
www.persi.idaho.gov.
Impact on the City’s net position
Depending on the annual performance of the Base Plan and the various non-financial factors that affect the
collective Base Plan net pension liability (as described above), the City may periodically experience a
deficit in its net position. This can occur as a result of recording the City’s allocable portion of the net
CITY OF EAGLE, IDAHO
Notes to Financial Statements
27
pension liability which is an estimated liability that changes substantially from year to year depending on
the factors described above but does not currently require cash outflows. As the net pension liability of the
Base Plan is closely monitored by PERSI’s board (who makes changes to the contribution rates and other
terms of the Base Plan when deemed necessary), such deficits are not deemed to be of substantial concern.
F. IMPACT FEE CREDITS
The City has entered into an agreement with a developer in which the developer transferred real property
to the City in partial exchange for receiving impact fee credits that accrue on certain development property.
These impact fee credits are reduced over time as these impact fees are collected by the City and remitted
to the developer.
G. INTERFUND TRANSFERS
Interfund transfers during the year consist of the following:
Fund Transfer In Transfer Out Purpose
General $1,271,994 Debt Service, Support, Projects
Library $586,716 Support
Debt Service 103,825 Debt Service
Capital Projects 581,453 715,007 Projects & Equipment
Fiber 715,007 Projects & Equipment
Total $1,987,001 $1,987,001
H. TAX ABATEMENTS
Idaho counties are authorized by state statute to transact certain property tax activity with property owners
in their respective taxing districts. The counties collect the property taxes, then allocate and remit those
collections among the taxing districts within the counties. The counties are authorized to cancel or reduce
property taxes due to various reasons, including the circuit breaker program, agricultural and other
exemptions, and section 63-602NN exemptions under Idaho code for real property improvements.
I. ANNEXATION AND COMPONENT UNIT REPORTING
During the 2022/23 fiscal year, the City annexed in the Avimor Community Infrastructure District No. 1
(the ACID) development. In previous years, ACID was reported as a component unit of Ada County, Idaho.
However, subsequent to the annexation, ACID is now reported as a component unit of the City of Eagle,
Idaho. In addition, the City’s other component unit, the Spring Valley Community Infrastructure District
No. 1 (the SVCID) has updated its reporting methods for community infrastructure costs to reflect
community infrastructure that is held by the SVCID at the financial statement date but will be later
transferred to other governments as well as its reporting methods for special assessments to reflect only
those that are currently assessed and due, if any, at the financial statement date.
CITY OF EAGLE, IDAHO
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2023
Page 1 of 2
Final Budget
Variance
Actual Positive
General Fund Original Final Amounts (Negative)
Revenues
Taxes $4,502,481 $4,502,481 $4,536,266 $33,785
Franchise Fees 945,000 945,000 1,203,122 258,122
Intergovernmental 4,441,013 4,441,013 4,302,464 (138,549)
Licenses, Permits, & Fees 3,028,500 3,028,500 3,537,809 509,309
Interest 8,500 8,500 185,733 177,233
Miscellaneous & Grants 9,555,873 9,555,873 425,107 (9,130,766)
Total Revenues 22,481,367 22,481,367 14,190,501 (8,290,866)
Expenditures
Current Expenditures
General Government 17,436,108 17,436,108 5,141,699 12,294,409
Public Safety 3,725,510 3,725,510 3,725,507 3
Parks, Pathways, & Streets 3,179,507 3,179,507 2,066,480 1,113,027
Culture & Recreation 1,434,315 1,434,315 997,420 436,895
Capital Outlay 284,000 284,000 135,445 148,555
Debt Service - Principal 0 0 0 0
Debt Service - Interest 0 0 0 0
Total Expenditures 26,059,440 26,059,440 12,066,551 13,992,889 *
Excess (Deficiency) of Revenues
Over Expenditures (3,578,073)(3,578,073)2,123,950 5,702,023
Other Financing Sources (Uses)
Transfers In 0 0 0 0
Transfers Out (2,731,553)(2,731,553)(1,271,994)1,459,559 *
Total Other Financing Sources (Uses)(2,731,553)(2,731,553)(1,271,994)1,459,559
Net Change in Fund Balances (6,309,626)(6,309,626)851,956 7,161,582
Fund Balances - Beginning 6,309,626 6,309,626 6,953,053 643,427
Fund Balances - Ending $0 $0 $7,805,009 $7,805,009
*Total expenditures (over) under appropriations are:$15,452,448
Budgeted Amounts
(GAAP Basis)
See Auditor's Report 28
CITY OF EAGLE, IDAHO
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2023
Page 2 of 2
Final Budget
Variance
Actual Positive
Library Fund Original Final Amounts (Negative)
Revenues
Taxes $1,000 $1,000 $0 ($1,000)
Franchise Fees 0 0 0 0
Intergovernmental 0 0 0 0
Licenses, Permits, & Fees 5,100 5,100 14,231 9,131
Interest 1,200 1,200 846 (354)
Miscellaneous & Grants 1,250 1,250 4,406 3,156
Total Revenues 8,550 8,550 19,483 10,933
Expenditures
Current Expenditures
General Government 0 0 0 0
Public Safety 0 0 0 0
Parks, Pathways, & Streets 0 0 0 0
Culture & Recreation 1,516,105 1,516,105 1,352,846 163,259
Capital Outlay 726,798 726,798 215,403 511,395
Debt Service - Principal 0 0 0 0
Debt Service - Interest 0 0 0 0
Total Expenditures 2,242,903 2,242,903 1,568,249 674,654 *
Excess (Deficiency) of Revenues
Over Expenditures (2,234,353)(2,234,353)(1,548,766)685,587
Other Financing Sources (Uses)
Transfers In 1,402,353 1,402,353 586,716 (815,637)
Transfers Out 0 0 0 0 *
Total Other Financing Sources (Uses)1,402,353 1,402,353 586,716 (815,637)
Net Change in Fund Balances (832,000)(832,000)(962,050)(130,050)
Fund Balances - Beginning 832,000 832,000 962,050 130,050
Fund Balances - Ending $0 $0 $0 $0
*Total expenditures (over) under appropriations are:$674,654
Budgeted Amounts
(GAAP Basis)
See Auditor's Report 29
CITY OF EAGLE, IDAHO
Schedule of Employer's Share of Net Pension Asset and Liability
and Schedule of Employer Contributions
PERSI - Base Plan
Employer's
Proportional
Share of the Plan Fiduciary
Employer's Net Pension Net Position
Employer's Proportionate (Asset) Liability as a Percentage
Fiscal Year Portion of the Share of the as a Percentage of the Total
Ended Net Pension Net Pension Covered of Covered Pension
June 30 (Asset) Liability (Asset) Liability Payroll Payroll (Asset) Liability
2015 0.06005400%$790,813 $1,674,832 47.22%91.38%
2016 0.06110080%$1,238,607 $1,756,405 70.52%87.26%
2017 0.06405850%$1,006,890 $1,989,611 50.61%90.68%
2018 0.07276850%$1,073,348 $2,341,228 45.85%91.69%
2019 0.07542060%$860,905 $2,561,590 33.61%93.79%
2020 0.08064110%$1,872,593 $2,871,533 65.21%88.22%
2021 0.08614530%($68,036)$3,214,824 -2.12%100.36%
2022 0.08953030%$3,526,383 $3,530,578 99.88%83.09%
2023 0.10285191%$4,104,481 $4,373,174 93.86%83.83%
*As of the measurement date of the net pension (asset) liability.
Contributions
in Relation to Contributions
Fiscal Year Actuarially Actuarially Contribution as a Percentage
Ended Determined Determined Deficiency Covered of Covered
September 30 Contribution Contribution (Excess)Payroll Payroll
2015 $189,591 $189,591 $0 $1,674,832 11.32%
2016 $198,825 $198,825 $0 $1,756,405 11.32%
2017 $228,241 $228,241 $0 $2,016,263 11.32%
2018 $269,919 $269,919 $0 $2,384,443 11.32%
2019 $309,754 $309,754 $0 $2,700,821 11.47%
2020 $352,614 $352,614 $0 $2,953,216 11.94%
2021 $398,638 $398,638 $0 $3,338,677 11.94%
2022 $440,960 $440,960 $0 $3,693,132 11.94%
2023 $514,501 $514,501 $0 $4,378,732 11.75%
Schedule of Employer's Share of Net Pension Asset and Liability*
Schedule of Employer Contributions
Schedules above intended to show information for 10 years. Information for additional years will be presented as it
becomes available.
See Auditor's Report 30
CITY OF EAGLE, IDAHO
Schedule of Expenditures of Federal Awards
Year Ended September 30, 2023
Federal Pass-Through
Federal Grantor/ Pass-Through AL Entity Identifying Federal
Grantor/Program or Cluster Title Number Number Expenditures
US Dept of Transportation
Passed Through Idaho Transportation Dept
Highway Planning & Construction 20.205 None $2,338,431
Highway Safety Cluster:
State and Community Highway Safety 20.600 None 4,947
Total Highway Safety Cluster 4,947
Total US Dept of Transportation 2,343,378
US Dept of Treasury
Passed Through Idaho State Controller's Office
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds 21.027 None 2,021,452
Total US Dept of Treasury 2,021,452
US Dept of Homeland Security
Passed Through Idaho Office of Emergency Management
Disaster Grants Public Assistance 97.036 FEMA-4342-DR-ID 704,676
BRIC: Building Resilient Infrastructure and Communities 97.047 EMS2020PC0003 18,450
Total US Dept of Homeland Security 723,126
Total Expenditures of Federal Awards $5,087,956
NOTES:
A.Basis of Presentation -The accompanying schedule of expenditures of federal awards (the schedule)includes the federal award
activity of the City under programs of the federal government for the year ended September 30,2023.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.No awards were passed through to subrecipients.The City has
not elected to use the 10 percent de minimis indirect cost rate as allowed under the Uniform Guidance.
See Auditor's Report 31
32
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, the discretely presented component units, 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, 2023, and the related notes to the financial statements, which collectively comprise the City’s
basic financial statements, and have issued our report thereon dated February 29, 2024.
Report on Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City’s internal control
over financial reporting (internal control) as a basis for designing audit procedures that are appropriate in
the circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City’s internal control. Accordingly, we do not
express an opinion on the effectiveness of the City’s internal control.
A deficiency in internal control exists when the design or operation of a control does not allow management
or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct,
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies, in
internal control, such that there is a reasonable possibility that a material misstatement of the entity’s
financial statements will not be prevented, or detected and corrected on a timely basis. A significant
deficiency is a deficiency, or a combination of deficiencies, in internal control that is less severe than a
material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described in the
first paragraph of this section and was not designed to identify all deficiencies in internal control that might
be material weaknesses or significant deficiencies. Given these limitations, during our audit we did not
identify any deficiencies in internal control that we consider to be material weaknesses. However, material
weaknesses or significant deficiencies may exist that have not been identified.
Report on Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts,
and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
33
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
February 29, 2024
34
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
Opinion on Each Major Federal Program
We have audited the City of Eagle, Idaho’s (the City’s) compliance with the types of compliance
requirements identified as subject to audit 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, 2023. 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.
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, 2023.
Basis for Opinion on Each Major Federal Program
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). Our responsibilities under those standards
and the Uniform Guidance are further described in the Auditor’s Responsibilities for the Audit of
Compliance section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of the City’s compliance with the compliance
requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City’s
federal programs.
35
Auditor’s Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City’s compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with generally
accepted auditing standards, Government Auditing Standards, and the Uniform Guidance will always detect
material noncompliance when it exists. The risk of not detecting material noncompliance resulting from
fraud is higher than for that resulting from error, as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of internal control. Noncompliance with the compliance
requirements referred to above is considered material if there is a substantial likelihood that, individually
or in the aggregate, it would influence the judgment made by a reasonable user of the report on compliance
about the City’s compliance with the requirements of each major federal program as a whole.
In performing an audit in accordance with generally accepted auditing standards, Government Auditing
Standards, and the Uniform Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a test
basis, evidence regarding the City’s compliance with the compliance requirements referred to above
and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City’s internal control over compliance relevant to the audit in order
to design audit procedures that are appropriate in the circumstances and to test and report on internal
control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of the City’s internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on 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 Auditor’s
Responsibilities for the Audit of Compliance section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
36
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies may exist that were not identified.
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
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
February 29, 2024
CITY OF EAGLE, IDAHO
Schedule of Findings and Questioned Costs
Year Ended September 30, 2023
37
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. COVID-19 - Coronavirus State and Local Fiscal Recovery Funds – AL #21.027
Dollar threshold used to distinguish between type A and B programs: $750,000
Auditee qualified as a low-risk auditee? Yes