Finance - Annual Audit - 09/30/2018CITY OF EAGLE, IDAHO
AUDITED FINANCIAL STATEMENTS
Year Ended September 30, 2018
CITY OF EAGLE, IDAHO
Table of Contents
FINANCIAL SECTION
PAGE S
Independent Auditor's Report.............................................................. 1-3
BASIC FINANCIAL STATEMENTS
Government -Wide Financial Statements
Statement of Net Position......................................................... 4
Statement of Activities............................................................. 5
Fund Financial Statements
Balance Sheet — Governmental Funds ............................................ 6-8
Statement of Revenues, Expenditures, and Changes in Fund Balances —
Governmental Funds........................................................... 9-11
Statement of Net Position — Proprietary Fund .................................. 12
Statement of Revenues, Expenses, and Changes in Net Position —
Proprietary Fund................................................................ 13
Statement of Cash Flows — Proprietary Fund ................................... 14
Notes to Financial Statements..................................................... 15-28
REQUIRED SUPPLEMENTARY INFORMATION
Budgetary Comparison Schedule — General and Major Special Revenue 29-30
Funds........................................................................................................... .
Schedule of Employer's Share of Net Pension Liability .................................... 31
Schedule of Employer Contributions.................................................................... 32
SUPPLEMENTARY INFORMATION
Combining Balance Sheet — Nonmajor Governmental Funds ........................... 33
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Nonmajor Governmental Funds ..................................................... 34
I
CITY OF EAGLE, IDAHO
Table of Contents
OTHER REPORTS
PAGE S
Independent Auditor's Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of the Financial
Statements Performed in Accordance with Government Auditing Standards... 35-36
ii
FINANCIAL SECTION
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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, 2018, 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.
1
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinions.
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, 2018,
and the respective changes in financial position, and, where applicable, cash flows thereof for the
year then ended in accordance with accounting principles generally accepted in the United States
of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
budgetary comparison schedules, schedule of employer's share of net pension liability, and
schedule of employer contributions listed as required supplementary information in the table of
contents be presented to supplement the basic financial statements. Such information, although not
required to be a part of the basic financial statements, is required by the Governmental Accounting
Standards Board who considers it to be an essential part of financial reporting for placing the basic
financial statements in an appropriate operational, economic, and historical context. We have
applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries
of management about the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and
other knowledge we obtained during our audit of the basic financial statements. We do not express
an opinion or provide any assurance on the information because the limited procedures do not
provide us with sufficient evidence to express an opinion or provide any assurance.
Management has not included the management's discussion and analysis information that
accounting principles generally accepted in the United States of America require to be presented
to supplement the basic financial statements. Such information, although not part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, and historical context. Our opinion on the basic financial
statements is not affected by not including this information.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City's basic financial statements. The accompanying combining and
individual nonmajor fund financial statements are presented for purposes of additional analysis
and are not a required part of the basic financial statements.
2
The combining and individual nonmaj or fund financial statements are the responsibility of
management and were derived from and relate directly to the underlying accounting and other
records used to prepare the basic financial statements. Such information has been subjected to the
auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining and individual
nonmajor fund financial statements are fairly stated in all material respects in relation to the basic
financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated January
9, 2019, on our consideration of the City's internal control over financial reporting and on our tests
of its compliance with certain provisions of laws, regulations, contracts, grant agreements and
other matters. The purpose of that report is to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the internal control over financial reporting or on compliance. That report is an integral
part of an audit performed in accordance with Government Auditing Standards in considering the
City's internal control over financial reporting and compliance.
Qt4ast CPAs Pllc
Payette, Idaho
January 9, 2019
3
BASIC FINANCIAL STATEMENTS
CITY OF EAGLE, IDAHO
Statement of Net Position
September 30, 2018
Assets
Current Assets
Cash
Receivables:
Taxes
Intergovernmental
Accounts
Total Current Assets
Noncurrent Assets
Restricted Cash
Nondepreciable Capital Assets
Depreciable Net Capital Assets
Total Noncurrent Assets
Total Assets
Deferred Outflows of Resources
Pension Sources
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows
of Resources
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses
Deposits Payable
Accrued Interest
Long -Term Debt & Obligations, Current
Total Current Liabilities
Noncurrent Liabilities
Long -Term Debt & Obligations, Noncurrent
Net Pension Liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources
Pension Sources
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows
of Resources
Net Position
Net Investment in Capital Assets
Restricted - Special Programs
Restricted - Debt Service
Restricted - Capital Projects
Unrestricted
Total Net Position
Total Liabilities and Deferred Inflows
of Resources and Net Position
See Accompanying Notes
Governmental Business -Type
Activities Activities Total
9,631,340 1,171,165 10,802,505
27,042
6,499,280
27,042
730,142
7,833,822
730,142
201,595 91,832 293,427
10,590,119 1,262,997 11,853,116
1,691,310 1,241,292 2,932,602
5,106,237 93,250 5,199,487
9,820,101 6,499,280 16,319,381
16,617,648 7,833,822 24,451,470
27,207,767 9,096,819 36,304,586
229,860 25,286 255,146
229,860 25,286 255,146
27,437,627 $9,122,105 $36,559,732
583,698 64,249 647,947
1,691,310 75,750 1,767,060
25,622 25,622
194,880 135,251 330,131
2,469,888 300,872 2,770,760
661,751 1,770,719 2,432,470
962,008 111,340 1,073,348
1,623,759 1,882,059 3,505,818
4,093,647 2,182,931 6,276,578
177,022 23,297 200,319
177,022 23,297 200,319
4,270,669 2,206,228 6,476,897
14,184,296
830,225
3,110
3,120,241
5,029,086
23,166,958
2 /,43 /,62 /
4,674,866
181,836
983,706
1,075,469
6,915,877
V,122,IUJ
18,859,162
830,225
184,946
4,103,947
6,104,555
30,082,835
36,559,732
4
CITY OF EAGLE, IDAHO
Statement of Activities
Year Ended September 30, 2018
See Accompanying Notes 5
Program Revenues
Operating Capital
Charges For Grants And Grants And Net (Expense)
Functions/Programs Expenses Services Contributions Contributions Revenue
Governmental Activities
Current Expenditures
General Government 3,479,077 2,118,497 10,335 1,350,245)
Public Safety 2,252,629 1,373,764 878,865)
Parks & Streets 1,624,592 990,756 633,836)
Culture & Recreation 1,254,066 764,791 489,275)
Debt Service - Interest 24,925 24,925)
Capital Assets 593,007 593,007)
Total Governmental Activities 9,228,296 5,247,808 10,335 0 3,970,153)
Business -Type Activities
Water Services 955,734 1,545,947 1,357,360 1,947,573
Total Business -Type Activities 955,734 1,545,947 0 1,357,360 1,947,573
Total 10,184,030 6,793,755 10,335 1,357,360 2,022,580)
Governmental Business -Type
Changes in Net Position Activities Activities Total
Net(Expense)Revenue 3,970,153) 1,947,573 2,022,580)
General Revenues
Taxes 3,190,347 3,190,347
Franchise Fees 759,794 759,794
Intergovernmental 2,711,204 2,711,204
Interest 21,989 4,162 26,151
Miscellaneous 275,894 275,894
Pension Revenue (Expense) 304,430) 37,578) 342,008)
Total 6,654,798 33,416) 6,621,382
Change in Net Position 2,684,645 1,914,157 4,598,802
Net Position - Beginning 20,482,313 5,001,720 25,484,033
Net Position - Ending 23,166,958 6,915,877 30,082,835
See Accompanying Notes 5
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2018
Assets
Cash
Receivables:
Taxes
Intergovernmental
Accounts
Due From Other Funds
Restricted Cash
Total Assets
Liabilities
Accounts Payable & Accrued Expenses
Due To Other Funds
Deposits Payable
Total Liabilities
Deferred Inflows of Resources
Unavailable Tax Revenues
Total Deferred Inflows of Resources
Fund Balances
Restricted - Special Programs
Restricted - Debt Service
Restricted - Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Deferred Inflows
of Resources and Fund Balances
Page 1 of 3
Debt
General Library Service Park
5,852,585 569,711 3,110 $2,093,498
16,183 10,859
730,142
198,719 1,872
1,691,310
8,488,939 582,442 3,110 $2,093,498
475,048 31,953 399
1,691,310
2,166,358 31,953 0 399
279,350 540,875
6,028,928
0 0
3,110
2,093,099
540,875 3,110 2,093,099
8,488,939 $582,442 $3,110 $2,093,498
See Accompanying Notes 6
CITY OF EAGLE, IDAHO
Balance Sheet - Governmental Funds
September 30, 2018
Assets
Cash
Receivables:
Taxes
Intergovernmental
Accounts
Due From Other Funds
Restricted Cash
Total Assets
Liabilities
Accounts Payable & Accrued Expenses
Due To Other Funds
Deposits Payable
Total Liabilities
Deferred Inflows of Resources
Unavailable Tax Revenues
Total Deferred Inflows of Resources
Fund Balances
Restricted - Special Programs
Restricted - Debt Service
Restricted - Capital Projects
Unassigned
Total Fund Balances
Total Liabilities and Deferred Inflows
of Resources and Fund Balances
Capital
Proj ects
Page 2 of 3
Other Total
Governmental Governmental
837,675 274,761 9,631,340
0 27,042
0 730,142
1,004 201,595
0 0
0 1,691,310
837,675 275,765 12,281,429
75,967 331 583,698
0 0
0 1,691,310
75,967 331 2,275,008
0 23,917
0 0 23,917
10,000 830,225
0 3,110
761,708 265,434 3,120,241
0 6,028,928
761,708 275,434 9,982,504
837,675 $275,765 $12,281,429
See Accompanying Notes 7
CITY OF EAGLE, IDAHO Page 3 of 3
Balance Sheet - Governmental Funds
September 30, 2018
Reconciliation of Total Governmental Fund Balances to Net
Position of Governmental Activities
Total Governmental Fund Balances $9,982,504
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. 14,926,338
Certain receivables are not available to pay for current period
expenditures and therefore are deferred in the funds. 23,917
Certain liabilities are not due and payable in the current period
and therefore are not reported in the funds. (856,631)
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. (909,170)
Net Position of Governmental Activities $23,166,958
See Accompanying Notes 8
CITY OF EAGLE, IDAHO Page 1 of 3
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2018
See Accompanying Notes 9
Debt
General Library Service Park
Fund Fund Fund Fund
Revenues
Taxes 1,891,322 1,303,917
Franchise Fees 759,794
Intergovernmental 2,711,204
Licenses, Permits, & Fees 4,204,443 20,887 788,814
Interest 13,876 1,028 6,355
Miscellaneous 161,017 4,743
Total Revenues 9,741,656 1,330,575 0 795,169
Expenditures
Current Expenditures
General Government 3,559,141
Public Safety 2,314,670
Parks & Streets 1,669,335
Culture & Recreation 146,333 1,142,272
Capital Outlay 1,252,123 103,032 1,933,995
Debt Service - Principal 0 70,000
Debt Service - Interest 0 35,216
Total Expenditures 8,941,602 1,245,304 105,216 1,933,995
Excess (Deficiency) of Revenues
Over Expenditures 800,054 85,271 105,216) 1,138,826)
Other Financing Sources (Uses)
Owner Contributions
Transfers In 105,300
Transfers Out 1,375,132)
Total Other Financing Sources (Uses) 1,375,132) 0 105,300 0
Net Change in Fund Balances 575,078) 85,271 84 1,138,826)
Net Position - Beginning 6,883,356 455,604 3,026 3,231,925
Net Position - Ending 6,308,278 540,875 3,110 2,093,099
See Accompanying Notes 9
CITY OF EAGLE, IDAHO Page 2 of 3
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2018
Excess (Deficiency) of Revenues
Over Expenditures
Capital Other Total
Other Financing Sources (Uses)
Projects Governmental Governmental
Owner Contributions
Fund Funds Funds
Revenues
1,238,330 31,502 1,375,132
Taxes 0 3,195,239
Franchise Fees
1,238,330
0 759,794
Intergovernmental
31,602
0 2,711,204
Licenses, Permits, & Fees
730,106
233,664 5,247,808
Interest 462 268 21,989
Miscellaneous 110,134 0 275,894
Total Revenues 110,596 233,932 12,211,928
Expenditures
Current Expenditures
General Government 10,335 3,569,476
Public Safety 0 2,314,670
Parks & Streets 0 1,669,335
Culture & Recreation 0 1,288,605
Capital Outlay 1,317,324 0 4,606,474
Debt Service - Principal 0 70,000
Debt Service - Interest 0 35,216
Total Expenditures 1,317,324 10,335 13,553,776
Excess (Deficiency) of Revenues
Over Expenditures 1,206,728) 223,597 1,341,848)
Other Financing Sources (Uses)
Owner Contributions 10,335 10,335
Transfers In 1,238,330 31,502 1,375,132
Transfers Out 0 1,375,132)
Total Other Financing Sources (Uses) 1,238,330 41,837 10,335
Net Change in Fund Balances 31,602 265,434 1,331,513)
Net Position - Beginning 730,106 10,000 11,314,017
Net Position - Ending 761,708 275,434 9,982,504
See Accompanying Notes 10
CITY OF EAGLE, IDAHO Page 3 of 3
Statement of Revenues, Expenditures, and Changes in Fund Balances -
Governmental Funds
Year Ended September 30, 2018
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 ($1,331,513)
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. 4,013,467
Revenues in the statement of activities that do not provide current
financial resources are deferred in the funds. (4,892)
Repayment of debt principal is an expenditure in the
governmental funds, but the repayment reduces long-term debt in
the statement of net position. 70,000
Bond premiums are amortized against interest expense over the
term of the bond. 10,291
In the statement of activities, compensated absences are accrued
when earned, but the expenditure is reported when due in the
governmental funds. (5,274)
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. (67,434)
Change in Net Position of Governmental Activities $2,684,645
See Accompanying Notes 11
CITY OF EAGLE, IDAHO
Statement of Net Position - Proprietary Fund
September 30, 2018
Assets
Current Assets
Cash
Receivables:
Accounts
Total Current Assets
Noncurrent Assets
Restricted Cash
Nondepreciable Capital Assets
Depreciable Net Capital Assets
Total Noncurrent Assets
Total Assets
Deterred Outflows of Resources
Pension Sources
Total Deferred Outflows of Resources
Total Assets and Deferred Outflows of Resources
Liabilities
Current Liabilities
Accounts Payable & Accrued Expenses
Deposits Payable
Accrued Interest
Long -Term Debt & Obligations, Current
Total Current Liabilities
Noncurrent Liabilities
Long -Term Debt & Obligations, Noncurrent
Net Pension Liability
Total Noncurrent Liabilities
Total Liabilities
Deferred Inflows of Resources
Pension Sources
Total Deferred Inflows of Resources
Total Liabilities and Deferred Inflows of Resources
Net Position
Net Investment in Capital Assets
Restricted - Debt Service
Restricted - Capital Projects
Unrestricted
Total Net Position
Total Liabilities and Deferred Inflows of Resources and Net Position
W atcr
Fund
1,171,165
91,832
1,262,997
1,241,292
93,250
6,499,280
7,833,822
9,096,819
25,286
25,286
9,122,105
64,249
75,750
25,622
135,251
300,872
1,770,719
111,340
1,882,059
2,182,931
23,297
23,297
2,206,228
4,674,866
181,836
983,706
1,075,469
6,915,877
9,122,105
See Accompanying Notes 12
CITY OF EAGLE, IDAHO
Statement of Revenues, Expenses, and Changes in Net Position - Proprietary Fund
Year Ended September 30, 2018
Operating Expenses
Personnel
Water
Operations & Maintenance
Fund
Operating Revenues
3 63, 514
Service Fees 941,276
STL & WCE Fees 304,945
Hook -Up Fees 289,365
Miscellaneous 10,361
Total Operating Revenues 1,545,947
Operating Expenses
Personnel 327,896
Operations & Maintenance 200,560
Depreciation 3 63, 514
Total Operating Expenses 891,970
Operating Income (Loss) 653,977
Nonoperating Revenues (Expenses)
Interest Income 4,162
Interest Expense (63,764)
Pension Revenue (Expense) (37,578)
Total Nonoperating Revenue (Expenses) (97,180)
Income (Loss) Before Contributions 556,797
Capital Contributions 1,357,360
Change in Net Position 1,914,157
Net Position - Beginning 5,001,720
Net Position - Ending $6,915,877
See Accompanying Notes 13
CITY OF EAGLE, IDAHO
Statement of Cash Flows - Proprietary Fund
Year Ended September 30, 2018
Cash Flows From Capital & Related Financing
Acquisition of Capital Assets (180,828)
Interest Paid on Debt (70,354)
Principal Paid on Debt (136,482)
Changes in Other Long -Term Obligations 1,267
Cash Provided (Used) By Capital & Related Financing (386,397)
Cash Flows From Investments
Interest Income 4,162
Cash Provided (Used) By Investments 4,162
Change in Cash 604,378
Cash - Beginning 1,808,079
Cash - Ending $2,412,457
Cash Reconciliation
Cash $1,171,165
Restricted Cash 1,241,292
Total Cash $2,412,457
Reconciliation of Operating Income (Loss) to Cash
Water
Provided (Used) By Operations
Fund
Cash Flows From Operations
653,977
Receipts from Customers 1,538,169
Payments for Personnel 357,150)
Payments for Goods & Services 194,406)
Cash Provided (Used) By Operations 986,613
Cash Flows From Capital & Related Financing
Acquisition of Capital Assets (180,828)
Interest Paid on Debt (70,354)
Principal Paid on Debt (136,482)
Changes in Other Long -Term Obligations 1,267
Cash Provided (Used) By Capital & Related Financing (386,397)
Cash Flows From Investments
Interest Income 4,162
Cash Provided (Used) By Investments 4,162
Change in Cash 604,378
Cash - Beginning 1,808,079
Cash - Ending $2,412,457
Cash Reconciliation
Cash $1,171,165
Restricted Cash 1,241,292
Total Cash $2,412,457
Reconciliation of Operating Income (Loss) to Cash
Provided (Used) By Operations
Operating Income (Loss) 653,977
Adjustments to Reconcile Operating Income (Loss) to
Cash Provided (Used) by Operations:
Depreciation 363,514
PERSI Contributions 29,254)
Changes in Assets & Liabilities:
Receivables 20,003)
Accounts Payable & Accrued Expenses 6,154
Deposits Payable 12,225
Cash Provided (Used) By Operations 986,613
Noncash Capital & Related Financing Activities:
Capital Contributions - Water System Contributed by Developers $1,357,360
See Accompanying Notes 14
CITY OF EAGLE, IDAHO
Notes to Financial Statements
A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity — The City of Eagle, Idaho (the City) provides basic municipal services and
operates under a mayor -council form of government. These financial statements are prepared in
accordance with generally accepted accounting principles (GAAP) as applied to cities. The
governmental accounting standards board (GASB) is responsible for establishing GAAP for state
and local governments through its pronouncements (statements and interpretations). The more
significant accounting policies established in GAAP and used by the City are discussed below.
As required by GAAP, these financial statements present the City and its component unit, the
Spring Valley Community Infrastructure District No. 1, an entity for which the City is considered
to be financial accountable. A component unit is included in the City's reporting entity if it is both
fiscally dependent on the City (the primary government) and there is the potential for the
component unit to provide specific financial benefits to, or impose specific financial burdens on
the primary government. Because of the closeness of their relationship with the primary
government (the City), some component units are blended as though they are part of the primary
government and are reported as special revenue funds. Blended component units include the
SVCID. The SVCID board has directors who are also City council members and the SVCID's
operational responsibilities are performed by the SVCID board and City staff. Separate financial
statements for the SVCID are issued and available from the City.
Basic Financial Statements - Government -Wide Statements — The City's basic financial
statements include both government -wide (reporting the City as a whole) and fund financial
statements (reporting the City's major funds). Both government -wide and fund financial
statements categorize primary activities as either governmental or business -type.
In the government -wide statement of net position, both the governmental and business -type
activities columns (a) are presented on a consolidated basis by column, (b) and are reported on a
full accrual, economic resource basis, which recognizes all long-term assets and receivables as
well as long-term debt and obligations.
The government -wide statement of activities reports both the gross and net cost of each of the
City's functions and business -type activities. The functions are also supported by general
government revenues as reported in the statement of activities. The statement of activities reduces
gross expenses (including depreciation when recorded) by related program revenues and operating
and capital grants. Program revenues must be directly associated with the function. Internal activity
between funds is eliminated in the government -wide statement of activities. Operating grants
include operating -specific and discretionary (either operating or capital) grants while the capital
grants column reports capital -specific grants.
The net costs (by function or business -type activity) are normally covered by general revenues.
The City's sole activity is providing basic municipal services, and substantially all expenses are
directly related to this activity. Accordingly, there is no allocation of indirect costs.
15
CITY OF EAGLE, IDAHO
Notes to Financial Statements
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.
The emphasis in fund financial statements is on the major funds. Nonmaj or 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.
16
CITY OF EAGLE, IDAHO
Notes to Financial Statements
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 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 they become both measurable and available). "Measurable" means
the amount of the transaction can be determined and "available" means collectible within the
current period or within thirty days after year end. Expenditures are recorded when the related fund
liability is incurred. Exceptions to this general rule include principal and interest on long-term debt
which, if any, are recognized when due and payable.
Cash — The cash balances of the City's funds are pooled for investment purposes. The individual
funds' portions of the pooled cash are reported in each fund as cash. Interest earned on pooled cash
is allocated to the various funds in proportion to each fund's respective investment balance.
For purposes of the statement of cash flows, the City considers all investments (including restricted
cash) available for immediate withdrawal or with maturities of three months or less to be cash and
cash equivalents (referred to as cash).
Receivables — Receivables are reported net of any estimated uncollectible amounts.
Inventories — Material supplies on hand at year end are stated at the lower of cost or net realizable
value using the first -in, first -out method.
Capital Assets and Depreciation — Capital assets purchased or acquired with an original cost of
5,000 or more are reported at historical cost or estimated historical cost. Contributed assets are
reported at acquisition value as of the date received. Additions, improvements and other capital
outlays that significantly extend the useful life of an asset are capitalized. Other costs incurred for
repairs and maintenance are expensed as incurred. Depreciation over the estimated useful lives of
all depreciable assets is recorded using the straight line method.
Compensated Absences — The City provides certain compensated absences to its employees. The
estimated amount of compensation for future amounts is recorded as a liability in the
accompanying financial statements.
Pensions — For purposes of measuring the net pension liability and pension expense/revenue,
information about the fiduciary net position of the Public Employee Retirement System of Idaho
Base Plan (the Base Plan) and additions to/deductions from Base Plan's fiduciary net position have
been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit
17
CITY OF EAGLE, IDAHO
Notes to Financial Statements
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.
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.
Continent 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.
CITY OF EAGLE, IDAHO
Notes to Financial Statements
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 beat
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.
B. CASH
Cash consists of the following at year end:
Cash - Deposits
Total
Governmental Proprietary
Funds Funds Total
11,322,650 $2,412,457 $13,735,107
11,322,650 $2,412,457 $13,735,107
Deposits — At year end, the carrying amounts of the City's deposits were $13,73 5,107 and the bank
balances were $14,087,314. Of the bank balances, $309,026 was insured, $13,778,288 was
collateralized, and the balance was uninsured and uncollateralized.
Investments — State statutes authorize government entities to invest in certain bonds, notes,
accounts, investment pools, and other obligations of the state, U.S. Treasury, and U.S. corporations
pursuant to Idaho Code 67-1210 and 67-1210A. These statutes are designed to help minimize the
custodial risk that deposits may not be returned in the event of the failure of the issuer or other
counterparty, interest rate risk resulting from fair value losses arising from rising interest rates, or
credit risks that an issuer or other counterparty will not fulfill its obligations. The City's investment
policy complies with state statutes.
19
CITY OF EAGLE, IDAHO
Notes to Financial Statements
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.
C. CAPITAL ASSETS
A summary of capital assets for the year is as follows:
Beginning
Governmental Activities Balance
Nondepreciable Capital Assets
Land $2,403,354
Artwork/Collectibles 132,917
Construction in Progress 44,825
Total 2,581,096
Depreciable Capital Assets
Buildings 5,079,252
Improvements 8,207,816
Equipment 4,769,178
Subtotal 18,056,246
Accumulated Depreciation
104,808Buildings1,528,563
Improvements 4,231,970
Equipment 3,963,938
Subtotal 9,724,471
Total 8,331,775
Net Capital Assets $10,912,871
Ending
Increases Decreases Balance
2,525,141 $4,928,495
132,917
44,825
2,525,141 $0 5,106,237
175,951 5,255,203
1,802,350 10,010,166
103,032 4,872,210
2,081,333 0 20,137,579
104,808 1,633,371
329,250 4,561,220
158,949 4,122,887
593,007 0 10,317,478
1,488,326 0 9,820,101
4,013,467 0 $14,926,338
Depreciation expense of $593,007 was charged to the capital assets program.
20
Business -Type Activities
Nondepreciable Capital Assets
Land
Total
Depreciable Capital Assets
Buildings
Water System
Equipment
Subtotal
Accumulated Depreciation
Buildings
Water System
Equipment
Subtotal
Total
Net Capital Assets
CITY OF EAGLE, IDAHO
Notes to Financial Statements
Beginning
Transfer Out Purpose
Ending
Balance Increases Decreases Balance
31,502 Capital Projects
1,375,132 1,375,132
93,250 93,250
93,250 0 0 93,250
559,285 559,285
6,701,612 1,405,771 8,107,383
935,443 132,417 1,067,860
8,196,340 1,538,188 0 9,734,528
127,708 11,186 138,894
2,189,270 270,246 2,459,516
554,756 82,082 636,838
2,871,734 363,514 0 3,235,248
5,324,606 1,174,674 0 6,499,280
5,417,856 1,174,674 0 6,592,530
Depreciation expense of $363,514 was charged to the water services program.
D. INTERFUND TRANSFERS
Interfund transfers during the year consist of the following:
Fund
General
Debt Service
Capital Projects
Nonma j or Governmental
Total
Transfer In Transfer Out Purpose
1,375,132 Debt Service, Capital Projects
105,300 Debt Service
1,238,330 Capital Projects
31,502 Capital Projects
1,375,132 1,375,132
21
CITY OF EAGLE, IDAHO
Notes to Financial Statements
E. LONG-TERM DEBT AND OBLIGATIONS
Bonded Debt — At year end, the City's bonded debt was as follows:
Governmental Activities:
Outstanding
2013 - $985,000 - general obligation bonds for capital assets due in annual
principal installments and semiannual interest payments with interest at
2.00% - 5.00% through 2025/26, secured by future taxes, paid through the
debt service fund $670,000
Total $670,000
Maturities on the bonds — governmental activities — are estimated as follows:
Year Ended Principal Interest
9/30/19 70,000 32,750
9/30/20 75,000 29,250
9/30/21 75,000 26,250
9/30/22 80,000 22,500
9/30/23 85,000 18,500
9/30/24-26 285,000 29,000
Total 670,000 158,250
At a special election on May 21, 2013, the qualified electors of the Spring Valley Community
Infrastructure District No. 1 (SVCID), the City's component unit, approved the issuance of general
obligation bonds of SVCID in an amount not to exceed $250,000,000 and revenue bonds of SVCID
in an amount not to exceed $75,000,000. These bonds did not fund during the 2017/18 year.
Business -Type Activities:
Water Revenue Loan - At year end, the City's water revenue loan was as follows:
Water revenue loan - DEQ, due in semiannual payments of $90,918 with
interest at 3.25% through 2030/31, secured by future user fees, paid through
the water fund $1,892,042
Total $1,892,042
22
CITY OF EAGLE, IDAHO
Notes to Financial Statements
Maturities on the water revenue loan - business -type activities - are estimated as follows:
VPnr Fndod
9/30/19
9/30/20
9/30/21
9/30/22
9/30/23
9/30/24-28
9/30/29-31
Total
Changes in long-term debt and obligations are as follows:
Description
Governmental Act.
2013 G.O. Bonds
Bond Premium
Comp. Absences
Subtotal
Business -Type Act.
Water Revenue Loan
Comp. Absences
Subtotal
Total
Principal Interest
121,323 60,513
125,298 56,538
129,403 52,433
133,643 48,193
138,021 43,815
760,975 148,205
483,379 26,439
1,892,042 $436,136
Beginning Ending Due Within
Balance Increases Decreases Balance One Year
740,000
82,333
70,000 $670,000 $70,000
10,291 72,042 10,291
109,315 5,274 114,589 114,589
931,648 5,274 80,291 856,631 194,880
2,028,524 136,482 1,892,042 121,323
12,661 1,267 13,928 13,928
2,041,185 1,267 136,482 1,905,970 135,251
2,972,833 6,541 216,773 2,762,601 330,131
Interest and related costs during the year amounted to $24,925 and $63,764 and were charged to
the debt service - interest and water services programs, respectively. Compensated absences are
normally paid through the general or water fund.
F. PENSION PLAN
Plan Description
The City contributes to the Base Plan which is a cost-sharing multiple -employer defined benefit
pension plan administered by Public Employee Retirement System of Idaho (PERSI or System)
that covers substantially all employees of the State of Idaho, its agencies and various participating
political subdivisions. The cost to administer the plan is financed through the contributions and
investment earnings of the plan. PERSI issues a publicly available financial report that includes
financial statements and the required supplementary information for PERSI. That report may be
obtained on the PERSI website at www.persi.idaho.gov.
23
CITY OF EAGLE, IDAHO
Notes to Financial Statements
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 72% for police and firefighters. As of June 30, 2018 it was 6.79% for general
employees and 8.36% for police and firefighters. The employer contribution rate as a percent of
covered payroll is set by the Retirement Board and was 11.32% for general employees and 11.66%
for police and firefighters. The City's contributions were $269,919 for the year ended September
30, 2018.
Pension Liabilities, Pension Expense (Revenue), and Deferred Ou flows of Resources and
Deferred Inflows of Resources Related to Pensions
At September 30, 2018, the City reported a liability for its proportionate share of the net pension
liability. The net pension liability was measured as of June 30, 2018, 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
24
CITY OF EAGLE, IDAHO
Notes to Financial Statements
the Base Plan pension plan relative to the total contributions of all participating PERSI Base Plan
employers. At June 30, 2018, the City's proportion was 0.0727685 percent.
For the year ended September 30, 2018, the City recognized pension revenue (expense) of
342,008). At September 30, 2018, the City reported deferred outflows of resources and deferred
inflows of resources related to pensions from the following sources:
Differences between expected and actual experience
Changes in assumptions or other inputs
Net difference between projected and actual earnings on pension
plan investments
Employer contributions subsequent to the measurement date
Total
Deferred Deferred
Outflows of Inflows of
Resources Resources
117,823 $81,064
69,843
119,255
67,480
255,146 $200,319
67,480 reported as deferred outflows of resources related to pensions resulting from City
contributions made subsequent to the measurement date will be recognized as an addition to the
pension expense or reduction of the pension revenue in the year ending September 30, 2019.
The average of the expected remaining service lives of all employees that are provided with
pensions through the System (active and inactive
beginning of the measurement period ended June
period June 30, 2018.
employees) determined at July 1, 2017 the
30, 2018 is 4.9 and 5.5 for the measurement
Other amounts reported as deferred outflows of resources and deferred inflows of resources related
to pensions will be recognized in pension (expense) revenue as follows:
Year
Ended
9/30/19 87,250
9/30/20 10,281
9/30/21 87,953)
9/30/22 22,230)
Total 12,653)
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
25
CITY OF EAGLE, IDAHO
Notes to Financial Statements
earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any
unfunded actuarial accrued liability based on a level percentage of payroll. The maximum
amortization period for the Base Plan permitted under Section 59-1322, Idaho Code, is 25 years.
The total pension liability in the June 30, 2018 actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 3.25%
Salary increases 4.25 — 10.00%
Salary inflation 3.75%
Investment rate of return 7.10%, net of investment expenses
Cost -of -living adjustments 1%
Mortality rates were based on the RP — 2000 combined table for healthy males or females as
appropriate with the following offsets:
Set back 3 years for teachers
No offset for male fire and police
Forward one year for female fire and police
Set back one year for all general employees and all beneficiaries
An experience study was performed for the period July 1, 2007 through June 30, 2013 which
reviewed all economic and demographic assumptions other than mortality. Mortality and all
economic assumptions were studied in 2014 for the period from July 1, 2009 through June 30,
2013. The total pension liability as of June 30, 2018 is based on the results of an actuarial valuation
date of July 1, 2018.
The long-term expected rate of return on pension plan investments was determined using the
building block approach and a forward-looking model in which best estimate ranges of expected
future real rates of return (expected returns, net of pension plan investment expense and inflation)
are developed for each major asset class. These ranges are combined to produce the long-term
expected rate of return by weighing the expected future real rates of return by the target asset
allocation percentage and by adding expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption,
the System relies primarily on an approach which builds upon the latest capital market
assumptions. Specifically, the System uses consultants, investment managers and trustees to
develop capital market assumptions in analyzing the System's asset allocation. The assumptions
and the System's formal policy for asset allocation are shown below. The formal asset allocation
policy is somewhat more conservative than the current allocation of System's assets.
The best -estimate range for the long-term expected rate of return is determined by adding expected
inflation to expected long-term real returns and reflecting expected volatility and correlation. The
capital market assumptions are as of January 1, 2017.
26
CITY OF EAGLE, IDAHO
Notes to Financial Statements
Capital Market Assumptions
Asset Class
Expected
Return*
Expected
Risk
Strategic
Normal
Strategic
Ranges
Equities 70% 66%-77%
Broad Domestic Equities 9.15% 19.00% 55% 50%-65%
International 9.25% 20.20% 15% 10%-20%
Fixed Income 3.05% 3.75% 30% 23%-33%
Cash 2.25% 0.90% 0% 0%-5%
Expected
Expected Expected Real Expected
Total Fund Return* Inflation Return Risk
Actuary 7.00% 3.25% 3.75% N/A
Portfolio 6.58% 2.25% 4.33% 12.67%
Expected arithmetic return net of fees and expenses
Actuarial Assumptions
Assumed Inflation - Mean 3.25%
Assumed Inflation - Standard Deviation 2.00%
Portfolio Arithmetic Mean Return 8.42%
Portfolio Long -Term Expected Geometric Rate of Return 7.50%
Assumed Investment Expenses 0.40%
Long -Term Expected Gcomctric Rate of Return, Net of Investment Expenses 7.10%
Discount Rate
The discount rate used to measure the total pension liability was 7.10%. The projection of cash
flows used to determine the discount rate assumed that contributions from plan members will be
made at the current contribution rate. Based on these assumptions, the pension plans' net position
was projected to be available to make all projected future benefit payments of current plan
members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability. The
long-term expected rate of return was determined net of pension plan investment expense but
without reduction for pension plan administrative expense.
Sensitivity of the City's proportionate share of the net pension liability to changes in the discount
rate.
The following presents the City's proportionate share of the net pension liability calculated using
the discount rate of 7.10 percent, as well as what the City's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1 -percentage -point lower (6.10
percent) or 1 -percentage -point higher (8.10 percent) than the current rate:
27
CITY OF EAGLE, IDAHO
Notes to Financial Statements
City's proportionate share of the net pension
liability (asset)
Pension plan fiduciary net position
Current
I%Decrease Discount Rate I%Increase
6.10%) (7.10%) (8.10%)
2,686,833 $1,073,348 ($262,684)
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.
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF EAGLE, IDAHO Page 1 of 2
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2018
General Fund
Revenues
Taxes
Franchise Fees
Intergovernmental
Licenses, Permits, & Fees
Interest
Miscellaneous
Total Revenues
Expenditures
Current Expenditures
General Government
Public Safety
Parks & Streets
Culture & Recreation
Capital Outlay
Debt Service - Principal
Debt Service - Interest
Total Expenditures
Excess (Deficiency) of Revenues
Over Expenditures
Other Financing Sources (Uses)
Owner Contributions
Transfers In
Transfers Out
Total Other Financing Sources (Uses)
Net Change in Fund Balances
Fund Balances - Beginning
Fund Balances - Ending
Budgeted Amounts
GAAP Basis)
Original Final
Final Budget
Variance
Actual Positive
Amounts (Negative)
1,848,175 1,848,175 1,891,322 43,147
676,000 676,000 759,794 83,794
2,402,726 2,402,726 2,711,204 308,478
2,623,360 2,623,360 4,204,443 1,581,083
7,500 7,500 13,876 6,376
897,191 897,191 161,017 736,174)
8,454,952 8,454,952 9,741,656 1,286,704
7,204,031 7,262,981 3,559,141 3,703,840
2,331,932 2,331,932 2,314,670 17,262
2,268,892 2,268,892 1,669,335 599,557
176,999 176,999 146,333 30,666
1,252,123 1,532,123 1,252,123 280,000
0 0 0 0
0 0 0 0
13,233,977 13,572,927 8,941,602 4,631,325
4,779,025) 5,117,975) 800,054 5,918,029
0 0 0 0
0 0 0 0
1,375,132) 1,375,132) 1,375,132) 0
1,375,132) 1,375,132) 1,375,132) 0
6,154,157) 6,493,107) 575,078) 5,918,029
6,154,157 6,493,107 6,883,356 390,249
0 0 6,308,278 6,308,278
Total expenditures (over) under appropriations are: $4,631,325
See Auditor's Report 29
CITY OF EAGLE, IDAHO Page 2 of 2
Budgetary Comparison Schedule - General and Major Special Revenue Funds
Year Ended September 30, 2018
Excess (Deficiency) of Revenues
Over Expenditures 411,350) 467,567) 85,271
Final Budget
Other Financing Sources (Uses)
Budgeted Amounts Variance
GAAP Basis) Actual Positive
Library Fund Original Final Amounts Negative)
Revenues
0
Transfers Out 0 0
Taxes 1,284,446 1,284,446 1,303,917 19,471
Franchise Fees 0 0 0 0
Intergovernmental 0 0 0 0
Licenses, Permits, & Fees 17,800 17,800 20,887 3,087
Interest 500 500 1,028 528
Miscellaneous 200 200 4,743 4,543
Total Revenues 1,302,946 1,302,946 1,330,575 27,629
Expenditures
Current Expenditures
General Government 0 0 0 0
Public Safety 0 0 0 0
Parks & Streets 0 0 0 0
Culture & Recreation 1,629,362 1,642,663 1,142,272 500,391
Capital Outlay 84,934 127,850 103,032 24,818
Debt Service - Principal 0 0 0 0
Debt Service - Interest 0 0 0 0
Total Expenditures 1,714,296 1,770,513 1,245,304 525,209
Excess (Deficiency) of Revenues
Over Expenditures 411,350) 467,567) 85,271 552,838
Other Financing Sources (Uses)
Owner Contributions 0 0 0 0
Transfers In 0 0 0 0
Transfers Out 0 0 0 0
Total Other Financing Sources (Uses) 0 0 0 0
Net Change in Fund Balances 411,350) 467,567) 85,271 552,838
Fund Balances - Beginning 411,350 467,567 455,604 11,963)
Fund Balances - Ending 0 0 540,875 540,875
Total expenditures over) under appropriations are: 525,209
See Auditor's Report 30
CITY OF EAGLE, IDAHO
Schedule of Employer's Share of Net Pension Liability
PERSI - Base Plan
Last 10 - Fiscal Years*
2018 2017 2016 2015
City's portion of the net pension liability 0.0727685% 0.0640585% 0.0611008% 0.0600540%
City's proportionate share of the net pension
1,073,348 $1,006,890
liability
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
liability as a percentage of its covered 45.85% 50.61% 70.52% 47.22%
payroll
Plan fiduciary net position as a percentage 91.69% 90.68%
of the total pension liability
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*
Statutorily required contribution
Contributions in relation to the statutorily
required contribution
Contribution deficiency (excess)
City's covered payroll
Contributions as a percentage of covered
payroll
2018 2017 2016 2015
269,919 228,241 198,825 189,591
269,919 228,241 198,825 189,591
0 0 0 0
2,384,443 2,016,263 1,756,405 1,674,832
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
SUPPLEMENTARY INFORMATION
CITY OF EAGLE, IDAHO
Combining Balance Sheet - Nonmajor Governmental Funds
September 30, 2018
See Auditor's Report 33
Special Revenue Capital Projects
Spring Valley
CID No. 1 Pathway Total
Assets
Cash 9,327 265,434 274,761
Receivables:
Taxes 0
Intergovernmental 0
Accounts 1,004 1,004
Due From Other Funds 0
Restricted Cash 0
Total Assets 10,331 265,434 275,765
Liabilities
Accounts Payable & Accrued Expenses 331 331
Due To Other Funds 0
Deposits Payable 0
Total Liabilities 331 0 331
Deferred Inflows of Resources
Unavailable Tax Revenues 0
Total Deferred Inflows of Resources 0 0 0
Fund Balances
Restricted - Special Programs 10,000 10,000
Restricted - Debt Service 0
Restricted - Capital Projects 265,434 265,434
Unassigned 0
Total Fund Balances 10,000 265,434 275,434
Total Liabilities and Deferred Inflows
of Resources and Fund Balances 10,331 265,434 275,765
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, 2018
Special Revenue Capital Projects
Spring Valley
CID No. 1 Pathway Total
Revenues
Taxes $0
Franchise Fees 0
Intergovernmental 0
Licenses, Permits, & Fees $233,664 233,664
Interest 268 268
Miscellaneous 0
Total Revenues $0 233,932 233,932
Expenditures
Current Expenditures
General Government 10,335 10,335
Public Safety 0
Parks & Streets 0
Culture & Recreation 0
Capital Outlay 0
Debt Service - Principal 0
Debt Service - Interest 0
Total Expenditures 10,335 0 10,335
Excess (Deficiency) of Revenues
Over Expenditures 10,335) 233,932 223,597
Other Financing Sources (Uses)
Owner Contributions 10,335 10,335
Transfers In 31,502 31,502
Transfers Out 0
Total Other Financing Sources (Uses) 10,335 31,502 41,837
Net Change in Fund Balances 0 265,434 265,434
Net Position - Beginning 10,000 0 10,000
Net Position - Ending 10,000 265,434 275,434
See Auditor's Report 34
OTHER REPORTS
11501 Highway 95
Payette, Idaho 83661
www.qcpas.com
Audits u sL5 L infoLgcpas.com
Taxes P: 208-642-1417
Special Services Quality Expertise Service Timeliness F: 208-642-1582
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,
2018, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements, and have issued our report thereon dated January 9, 2019.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City's
internal control. Accordingly, we do not express an opinion on the effectiveness of the City's
internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent,
or detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or
combination of deficiencies, in internal control, such that there is a reasonable possibility that a
material misstatement of the entity's financial statements will not be prevented, or detected and
corrected on a timely basis. A significant deficiency is a deficiency, or a combination of
deficiencies, in internal control that is less severe than a material weakness, yet important enough
to merit attention by those charged with governance.
Our consideration of internal control over financial reporting was for the limited purpose described
in the first paragraph of this section and was not designed to identify all deficiencies in internal
control that might be material weaknesses or significant deficiencies. Given these limitations,
during our audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
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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 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.
Qt4ast CPAs Pllc
Payette, Idaho
January 9, 2019
36