Loading...
03.18.2021CouncilPacket Ammon City Council 03/16/2021Page 1 of 118 Ammon City Council 03/16/2021Page 2 of 118 Ammon City Council 03/16/2021Page 3 of 118 Ammon City Council 03/16/2021Page 4 of 118 Ammon City Council 03/16/2021Page 5 of 118 Ammon City Council 03/16/2021Page 6 of 118 Ammon City Council 03/16/2021Page 7 of 118 Ammon City Council 03/16/2021Page 8 of 118 Ammon City Council 03/16/2021Page 9 of 118 for bandwidth services * * * Ammon City Council 03/16/2021Page 10 of 118 Agreement GE Initial Term Network Renewal Term Services Term Ammon City Council 03/16/2021Page 11 of 118 Ammon City Council 03/16/2021Page 12 of 118 Ammon City Council 03/16/2021Page 13 of 118 Ammon City Council 03/16/2021Page 14 of 118 Ammon City Council 03/16/2021Page 15 of 118 Ammon City Council 03/16/2021Page 16 of 118 Ammon City Council 03/16/2021Page 17 of 118 Ammon City Council 03/16/2021Page 18 of 118 Ammon City Council 03/16/2021Page 19 of 118 Ammon City Council 03/16/2021Page 20 of 118 Ammon City Council 03/16/2021Page 21 of 118 Ammon City Council 03/16/2021Page 22 of 118 City of Ammon Year Ended September 30, 2020 Table of Contents Management's Discussion and Analysis.....................................................................................................1 Independent Auditor's Report........................................................................................................................9 Financial Statements Government-wide Statement of Net Position....................................................................................................11 Statement of Activities........................................................................................................................................12 Balance Sheet Governmental Funds...........................................................................................................................................13 Reconciliation of Governmental Funds Balance Sheet to the Statement of Net Position........................................................................................................................14 Statement of Revenues, Expenditures, and Changes in Fund Balances Governmental Funds...........................................................................................................................................15 Reconciliation of the Governmental Funds Revenues, Expenditures, and Changes in Fund Balance to the Statement of Activities.............................................................................16 Statement of Net Position Proprietary Funds................................................................................................................................................17 Statement of Revenues, Expenses, and Changes in Fund Net Position Proprietary Funds................................................................................................................................................18 Statements of Cash Flows Proprietary Funds................................................................................................................................................19 Notes to Financial Statements.............................................................................................................................21 Required Supplementary Information Statement of Revenues, Expenditures, and Changes in Fund Balance Budget to Actual - Government Funds................................................................................................................45 Schedule of Employer's Share of Net Pension Liability and Schedule of Employer Contributions.....................48 Other Information Nonmajor Governmental Funds Special Revenue Funds........................................................................................................................................49 All Nonmajor Funds Combining Balance Sheet....................................................................................................................................50 All Nonmajor Funds Combining Statement of Revenues, Expenditures, and Changes in Fund Balance............................................51 Ammon City Council 03/16/2021Page 23 of 118 City of Ammon Year Ended September 30, 2020 Annual Federal Compliance Section 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...................................................52 Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal Control over Compliance Required by Uniform Guidance............................................54 Schedule of Findings and Questioned Costs........................................................................................................56 Schedule of Expenditures of Federal Awards......................................................................................................59 Notes to Schedule of Expenditures of Federal Awards.......................................................................................60 Schedule of Prior Audit Findings..........................................................................................................................61 Ammon City Council 03/16/2021Page 24 of 118 !"#"#"$ %$& '$ > ( #"#" )*+",#-!*$. )/-/0/"1" '' '2 $ )/#*#1/*! 3('3 0 ('3 '.456/0'$ #"#"' ' )//#0//0,)-10/*#$( )0"/"-,/ '' $ #"#"' 7)/"!-"1"-$ ?@AB@AC? A> AA > 89'5 :;&<$9'5 $ DEFC> ' 6 $ $. ''$ ''' $'''' '''$( $'$( $ :'6' ('' ''' 6 $ 1 Ammon City Council 03/16/2021Page 25 of 118 ''' % ''$ 6 $ '6% ' '= &' $; '$ ' '$ > '' '' >$%' '6'<$ '8'$ 7;$ ''6$?%'6 ' $ '6'<$ :''6 ' ''6$:' '6'6'$:' '(' '' $ >'$ ' '( ' 7;;@%&;> '$'$ '$ ' '>$ @;$$A 6'6$ $ 2 Ammon City Council 03/16/2021Page 26 of 118 @'6 $ > $ B;$ ''6$ ?@ABA FCAG>> '$ ( )*+",#-!* !"#"#"$ :'$'$ '<$ 23< '$' < $ ' #"#"#"/08 HIHI#"/0 JHKLMINH!#""-#,0 MKOKHPLO,1!*01,, OIHHNLNL+-!1+-0! 5 NPHHII#/-*#! C HMIHKKM#+,#,11 C'6 JLIOHLPK!"0#!100 JJMONQNL!!111/1* 5 MQKKM,"!*10 B B JPKOOLHP#01,"-01 &LLOMLHO#,"!"1! =LQLOLIKI/#,+#+#! MPINHQJM,,*/11-# 3 Ammon City Council 03/16/2021Page 27 of 118 )//0*/#0 >( $' )/-/0/"1" ''' '2$ ' ' 6$ ' ' 6$ )/#*/11-#),,*/11-# !"#"/0 )*+",#-!* !"#"#"$7),,+0!-! 6)-",1++"$ 7 ),,+0!-!$D 8 5( $ &.456/0>'$ ' '#"#"#"/0$ #"/0 HIHI #"/0 HIHI:6 RF 7 DES DD & @' '0#*1-/QOLQHK-**110*QMLNPJJ .'' -"1-0*OMQKLH ' 1/1##,NQNLOQP,+"/!MLIINJJ 7 @(#++*,/1 HOMPKOJ C51-*/1*OMHKNI '/+1"0+,LOJHQQH 9/"10!!0 LHMMQPP 1011/1 HOONII -1!010,LJPOLMLP 0!""!#,LJOLNMKK 4 Ammon City Council 03/16/2021Page 28 of 118 #"/0 HIHI #"/0 HIHI:6 RF 7 DES DD A( 7'/!-!,"-LOOPLII C/1"#11+LPLHHOM ;/#101+-LLHPKHM @'2'1-",,LHLLLL A''!1#+*MOPPK :',#!!""NQOLKH @%!0*+1-NOJNKP &#!10/POQKQ @/1*/+,LJPQNO ?'#/-1*"*LQOMQKI ; C50"**!,LLOHIKO #0"0 MOMH E#,!/!,!HPLPIKP E##"0*--HLQOOKO -+1-0!MQLQIL ; !**!0*JPQOMO (-,1#0*!OJLHLJN*-+!#/0 MQKPPOK '/+1+,/NNPOJQJ!,#+/"*QINKPPI RFSD$:6' )-",1++"$D 8 ),1/,#,# !"#"#" 0 ('#"#"$ ( )*,#! !"#"#"$ G>>? A?@ABA >T> DE$'6 $'' <$ '$ !"#"#"' ' )//#0//0,)-10/*#$(-"F )0"/"-,/' '' $ ' ' '$ 7;'$ !"#"#"' 7;)/"!-"1"- )/"+"/"1,$7; < ' ($ 5 Ammon City Council 03/16/2021Page 29 of 118 7; )+#!+-*'$% 8 & )1*-,+1( ('%6$ ''$ A('% $ '.456/0' '$ UESEE$'6 $ BEE; .; !"#"#" )#,0/#0#0$' )-",1++"$.' 6$ REV#"/06#"#"7; '$ :'A( 77/-+!**!#"-/!/1 A/+,,!*+/+/##0* ;/##-!0,00*/+, :'*,!!!!,-/,+0 @%&/#*#/,/0####* -1/#1**-!1"/ E!+!#+#-/+++0-" /0001#!*++0*,# E10-*"-0#,0,,"# '1!*!""*,#*!# ; !/#,**,!+-0*0 ; C5//-!1"! (#!#-!!!+/-0!!/"- 77' ( '(' $ '($( '; .5 ( ; .C5 ' %'$(;5 ' ' $;((0 ),$*$@%5( ''( '$ 6 Ammon City Council 03/16/2021Page 30 of 118 U >>A AR > B ? S$' 6 !"#"#")*101#+/0$ ' '< $ B!$ 9>G'8 &A.456/0')*1+""".45 ($ : 'H5 )-+,0"+$7:''>' '' %' 6 '$ '=5:& )!""""">$ :' #"#"$#"#" )*!-!"#10#!,''"' !! //#1/ $ #"#"(#+$##!'296=$ >';5 :;@5I/$' (2$. /#"#"$ ; C5C5I,E?&' ?'';(?$C5I,1""!*"$ . $(-## 0G!"G#"$& $' <G $ 9@%#"(*"J'#"( +*#"(!"$;% $ WE$ '' <$)+"1#,+'$' )10/-*1'$ 7 Ammon City Council 03/16/2021Page 31 of 118 A?? ?B>AX GAB>RTA >B A> #"#"%.456/0'' %'%'$'' ' $A'' $''''2 'CC'( $ ?U?A T > = &'$ ' $ C''5'8 I/?%C' I#:'5I!, I!E?5I- I,?'' I*/ I17% I+:'5I*1 I-9:A I0.@% I/"?%C'5# C''5'' ' $ BAYTA> >?B?B ? '' '$K'< L:;5 #/!*&5-!,"1$ 8 Ammon City Council 03/16/2021Page 32 of 118 Independent Auditor's Report Honorable Mayor and City Council City of Ammon Idaho Falls, Idaho Report on the Financial Statements We have audited the accompanying financial statements 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 of Ammon, Idaho (the "City"), as of and for the year ended September 30, 2020, 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; 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 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 from material misstatement. An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial statements. The procedures selected depend on the auditor's judgment, including the assessment of the risks of material misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates made by management, as well as evaluating the overall presentation of the financial statements. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 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, the discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of Ammon, Idaho as of September 30, 2020, 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. 9 Ammon City Council 03/16/2021Page 33 of 118 Other Matters Required Supplementary Information Accounting principles generally accepted in the United States require that the management's discussion and analysis and budgetary comparison information and required supplementary information as listed in the table of contents be presented to supplement the basic financial statements. Such information, although not a part of the basic financial statements, is required by the Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States, 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. 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 supplementary information, such as combining nonmajor fund financial statements and the schedule of expenditures of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), are presented for purposes of additional analysis and are not a required part of the basic financial statements. The combining nonmajor fund financial statements and schedule of federal awards are the responsibility of management and were derived from and relate directly to the underlying accounting and other records used to prepare the basic financial statements. Such information has been subjected to the auditing procedures applied in the audit of the basic financial statements and certain additional procedures, including comparing and reconciling such information directly to the underlying accounting and other records used to prepare the basic financial statements or to the basic financial statements themselves, and other additional procedures in accordance with auditing standards generally accepted in the United States. In our opinion, the combining nonmajor fund financial statements and schedule of federal awards as listed in the table of contents 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 March 18, 2021, on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations, contracts, and 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. Wipfli LLP Idaho Falls, Idaho March 18, 2021 10 Ammon City Council 03/16/2021Page 34 of 118 >??@AB NTMK D@CD BDB?>C >?@AB @CB?D EF D@?DAA GD@ ?A? ? HI ?A? ? ?CB?D F?CB?D DDB? @ JDDB? @ HF AA CC >CCAA DA H BA@C BA@C DBAA DBAA > ?@ ??D@AA@ KF CBD@B@ LFDCDC@ >>@DCD> ACDD CDA >BCAA?@B D > E ?DDCC DAC?DB@ ? F @?@ F @?@C >C?@@@ FMAAAC?A?> @CC LF@CC @> @A F@> @A C>>C C>>C DCCDCC FDCCDCC > C@CB@>DCB B@A>DD@ @ KF ?ABB>B KFDA C AA CC HM AA CC DCCDCC FDCCDCC B D AB LN>@ C LD?C DDACB >CC?B D@ AB@C F D@DA@DC>C>>A @ BADD? E@BB DC@BB?A >?B@>BB KDCCBD?A> E OP@DB @DB LC?@C C?@C CB@D>D LFCB@D> ? >?A B B@@A> CQB@B@D R QMR >A>BDC?DDC?C D@>QB@B@D DR CCCC IIMS 11 Ammon City Council 03/16/2021Page 35 of 118 Ammon City Council 03/16/2021Page 36 of 118 W >?@ABC@ CCBA@?> DAB>BB ???EB?F ?BEGB@H>>C>E IB JKL??HE? BBB??HE? DMHABEAHH?@AE ?HBBBC@>@C@ DN?>@ CB?>@ C OH@?CEBH>? CC BBB?>HB??CHHA @CE JLJ HA >>BBBHA >> ?HH>E@ ? EACBF ?BEGH> C@?A?EE> C PJKI?CB>E??B@EBBB?CCCE@E PIN?H?>>E>EHHE@@HB@CE?A?B PJKICHCB>CHCB> QJJKI?EBBBBB?EBB QN BBB?C@> C?C@> C I?C @E>A?HBABHE@@? B????BEECA RIEB>? BB?@HEC>>?EB>C?C JI JLJ HA >>HA >> N ST ? EHABBB? EHA H? ? QJB??B@EB??H>? NB J?H@H E?H@H E PMNB PJB AB AB JH@EB?H@EB? OBB?ECCE?ECCE RM ?BEBABEBF?EC GF? >HHG>B?BEC? NI ?B@B?BAC?CEBEF?EC GFECBAG??H>??>C INNU NNI ?HH>E@ ? EACBF ?BEGH> C@?A?EE> C BBBBB JKMMJNV 13 Ammon City Council 03/16/2021Page 37 of 118 IGJK DEKE MKN REK EKL IOKP??>@> EPB?B>L >?@@ EFOGSQTMGG GKEFEUOE MGL @ SGEFGE EGLIGFN REGA B C DA>?BC ABB?? C EFG A> C EFG AH C IEGFM MEFE NEGFP??M EP@ >ME P@H>LA@@?C QGFKK KFLIKE GK ELB>H> IEJKBB?>? IEFKKEL 14 Ammon City Council 03/16/2021Page 38 of 118 ! >?@AB CDEFEGGHIIIDEFEGGH GJGGJEDKGDDFIIFFDHEH LGIHDIJIIMMJINFJMEDKI LOPFINMEGFINMEG OGEHDKKDNNNNDDIIDNGIJIF CFMIIIIFMI MJIEEMIIIMJGFE IIGJIFJNIGJIFJN MMEFDEDMJKFINGJIEJMJNDD GNKIEIFNEDFKNFMIIIIMIGMMNN A GFKFGJGDIENGKJFNFIKFGKHDFF JIKKKMFMKKEDJFDDFGGFGIHEHMKGHDFGMEI GKMKIKDIIIGKMKIKD LQ GNGDDEMIIIGNGDDEM EEMGNFIIIEEMGNF R GDGGGGIIIGDGGGG MENNJIIIMENNJ IIIFKGFNEFKGFNE > IINIFMIKINIFMIK IINEKJKINEKJK IIGHNKFEIGHNKFE SQC MNNEMFDMNNEMFD TLOP IIGGKHJIHGGKHJIH C FDHFNIIFDHFN FNKKNKMMNNEMFDEDDDDMGJJMIKDGHGMMJHF GHIIIJEGIENDDUJEKGGGVUJDMNDFVKMEMJ UV !! > O NKHGEJNKHGEJ W UMNJDKFVIMNJDKFII UV UMNJDKFVIEHKDFNNKHGEJNKHGEJ ?TNDHNKMGIENDDUGDGKDNVGMNFNDKJEGMD TUVWTGDIGEGIFDDIFD EENNDNEGHDKHGJGINEKDUEEGMHMV TUVTHIDIDIGINIGIJFGFHKIHKUGHKFMVUKHFIJHVGGDEGGEF CX 15 Ammon City Council 03/16/2021Page 39 of 118 IOL >?@AB NV JKMN KIOJNJ KCDAE @B JPQRNO JSJJTOT KUOOJJKAAF>B? QLOG HOJJKQ NOJ KIJOJ K@C>DF IGKK HK GFEDBH IONO NKIOJGW>AEC?DHK INW@ @? ?KI NWBFDAE@KGBCC?FDH OKQ OOJK JOKQ JOKI OJNJKGE?@>>BH QOJ JKI NKBCC @ ILCCE?F F IJK 16 Ammon City Council 03/16/2021Page 40 of 118 City of Ammon Combining Statements of Net Position Governmental Business-Type ActivitiesActivities SanitationNonmajorInternal Service Water FundsSewer FundsFunds(Fiber Optic)TotalFunds Assets Current assets Investments$4,092,195$9,650,341$2,720,441$17,695$16,480,672$177,098 Accounts Receivable660,184552,71242,972449,8041,705,672- Inventory---146,980146,980- Total current assets4,752,37910,203,0532,763,413614,47918,333,324177,098 Capital assets Nondepreciable assets1,248,952196,395-339,3701,784,717- Depreciable assets22,989,9778,918,810617,0551,286,18133,812,023179,479 Total capital assets24,238,9299,115,205617,0551,625,55135,596,740179,479 Total assets 28,991,30819,318,2583,380,4682,240,03053,930,064356,577 Deferred outflow of resources Related to pensions64,35043,80646,26427,054181,474- Liabilities and net position Current Accrued salaries and benefits40,29116,83720,12330,722107,97338,610 Accrued interest payable25,046260,102--285,148- Connection payable-400,400--400,400- Deposits payable105,8601,1103,360-110,330- Notes payable - current778,378605,676--1,384,054- Total current 949,5751,284,12523,48330,7222,287,90538,610 Noncurrent Pension liability196,462118,474132,25797,852545,045- Interfund payable---499,400499,400- Long-term debt8,110,00617,739,674--25,849,680- Total noncurrent 8,306,46817,858,148132,257597,25226,894,125- Total liabilities$9,256,043$19,142,273$155,740$627,974$29,182,030$38,610 Deferred inflow of resources Related to pensions6,2252,1651,9956,19416,579- Net position Net investment in capital assets15,350,545-617,0551,625,55117,593,151179,479 Restricted-1,068,523--1,068,523- Unrestricted4,442,845(850,897)2,651,9427,3656,251,255138,488 Total net position 19,793,390217,6263,268,9971,632,916$24,912,929317,967 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds194,291 Net position of business-type activities$25,107,220 The accompanying notes are integral to this financial statement 17 Ammon City Council 03/16/2021Page 41 of 118 City of Ammon Combining Statements of Revenues, Expenses and Changes In Net Position Governmental Business-Type ActivitiesActivities SewerSanitationNonmajorInternal Service Water FundsFundsFunds(Fiber Optic)TotalFunds Operating revenues Charges for Services$3,356,165$3,364,724$633,347$353,468$7,707,704$574,014 Connection Fees466,337261,300--727,637- Penalty Fees37,373--15437,527- Miscellaneous Revenues2,11431,251-8,50041,8652,455 Total operating revenues 3,861,9893,657,275633,347362,1228,514,733576,469 Operating expenses Power294,31913,653--307,972- Treatment-892,648--892,648- Operations and Maintenance978,172294,582258,54294,9991,626,295192,216 Salaries and Benefits464,706234,928214,621206,0591,120,314311,959 Depreciation757,205342,169110,43877,9011,287,71338,357 Total operating expenses 2,494,4021,777,980583,601378,9595,234,942542,532 Income (loss) from Operations 1,367,5871,879,29549,746(16,837)3,279,79133,937 Non-operating revenues (expenses) Grants and Awards173,085--417,575590,660- Investment Earnings77,206164,73151,0446,419299,4007,868 Interest Expense(232,858)(417,320)--(650,178)- Total non-operating revenues (expenses)17,433(252,589)51,044423,994239,8827,868 Capital contributions 1,913,9602,595,813--4,509,773- Increase in net position 3,298,9804,222,519100,790407,1578,029,44641,805 Net position, beginning of year 16,494,410(4,004,893)3,168,2071,225,75916,883,483276,162 Net position, end of year 19,793,390217,6263,268,9971,632,916$24,912,929317,967 Change in net position - enterprise funds8,029,446 Adjustment to reflect the consolidation of internal service fund activities related to enterprise funds17,324 Change in net position of business-type activities$8,046,770 The accompanying notes are integral to this financial statement 18 Ammon City Council 03/16/2021Page 42 of 118 118 of 43 Page 03/16/2021 Council City Ammon 118 of 44 Page 03/16/2021 Council City Ammon City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies Introduction _K" G6&#&76#; 4*#*"+"&*4 9G *K" N6*< 9G :++9& \[*K" bN6*<c\] K#D" ,""& )$")#$"' 6& #779$'#&7" F6*K #7798&*6&2 principles generally accepted in the United States (GAAP) as applied to government units. The Governmental Accounting Standards Board (GASB) is the accepted standard-setting body for establishing governmental accounting and financial reporting principles. The significant accounting principles and policies utilized by the City are described below: Reporting Entity The City is a municipal corporation governed by an elected Mayor and 6-member City Council which together possess the final decision-making authority and is held primarily accountable for those decisions. The City Council is responsible for approving the budget, establishing spending limitations, funding and deficits and borrowing funds and/or issuing bonds to finance construction. Discretely Presented Component Unit. In conformity with generally accepted accounting principles, the basic financial statements of Ammon Urban Renewal Agency have been included in the financial reporting entity as a discretely presented component unit, emphasizing their nature as a legally separate entity from the City. It is presented as a separate column within the basic financial statements. Ammon Urban Renewal Agency (the Agency). This component unit has a board, which is appointed by the Mayor of the City with the advice and consent of the Ammon City Council. The Ammon Urban Renewal Agency rehabilitates deteriorating or deteriorated areas. It has a fiscal year end of September 30. For financial reporting purposes, the City of Ammon, Idaho, combines the general maintenance and operating accounts of the Agency with all other funds which the management of the City has oversight responsibility and the governing authority to significantly influence operations. A copy of the Agency audit may be obtained at the City office. There are no other boards, councils, or component units for which the City of Ammon exercises authority. Basis of Presentation Government-Wide Financial Statements The government-wide financial statements (i.e., the statement of net position and the statement of activities) display information about the reporting government as a whole. These statements include all nonfiduciary activities of the City. Governmental activities, which are normally supported by taxes, intergovernmental revenues, and other non-exchange transactions are reported separately from business-type activities, which rely to a significant extent on fees and charges for support. While separate government-wide and fund financial statements are presented, they are interrelated. The governmental activities column incorporates data from governmental funds and internal service funds, while ,846&"44E*<)" #7*6D6*6"4 6&79$)9$#*" '#*# G$9+ *K" 29D"$&+"&*g4 "&*"$)$64" G8&'4= (")#$#*" G6&#&76#; 4*#*"+"&*4 are provided for governmental funds and proprietary funds. 21 Ammon City Council 03/16/2021Page 45 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Basis of Presentation(Continued) The statement of net position presents the financial condition of the governmental and business-type activities of the City at year-end. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are specifically associated with and are clearly identifiable to a particular function. Program revenues include (a) charges paid by the recipients for goods or services offered by the programs and (b) grants and contributions that are restricted to meeting the operational or capital requirements of a particular program. Revenues that are not classified as program revenues, including all taxes, are presented as general revenues. _K" 4*#*"+"&* 9G &"* )946*69& )$"4"&*4 *K" $")9$*6&2 "&*6*<g4 #44"*4 #&' ;6#,6;6*6"4/ F6*K *K" '6GG"$"&7" $")9$*"' #4 net position (net investment in capital assets; restricted net position; or unrestricted net position). Net investment in capital assets consists of capital assets, net of accumulated depreciation, and reduced by outstanding debt. Restricted net position results when constraints placed on net position use are imposed by third parties through constitutional provisions or enabling legislation. The statement of activities demonstrates the degree to which the direct expenses of a given function are offset by program revenues. Direct expenses are those that are clearly identifiable with a specific function. Program revenues include (1) charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by a given function, and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a particular function. Taxes and other items not included among program revenues are reported as general revenues. The City applies restricted resources first when an expense is incurred for a purpose for which both restricted and unrestricted net position are available. Depreciation expense that can be specifically identified by function is included in the direct expenses of each function. Interest on general long-term debt is considered an indirect expense and is reported separately on the statement of activities. Fund Financial Statements _K" G8&' 4*#*"+"&*4 )$9D6'" 6&G9$+#*69& #,98* *K" N6*<g4 G8&'4= (")#$#*" 4*#*"+"&*4 G9$ "#7K G8&' 7#*"29$<h29D"$&+"&*#; #&' )$9)$6"*#$<h#$" )$"4"&*"'= _K" "+)K#464 9G G8&' G6&#&76#; 4*#*"+"&*4 64 9& +#V9$ funds, each displayed in a separate column. All remaining governmental funds are aggregated and reported as other governmental funds. Governmental Fund Types Governmental funds are those funds through which most governmental functions typically are financed. The measurement focus of governmental funds is on the sources, uses, and balance of current financial resources. The City reports the following major governmental funds: General Fund E _K64 G8&' 64 *K" N6*<g4 )$6+#$< 9)"$#*6&2 G8&'= ?* #7798&*4 G9$ #;; G6&#&76#; $"498$7"4 9G *K" 2"&"$#; government, except those required to be accounted for in another fund. All general tax revenues and other receipts that are not restricted by law or contractual agreement to some other fund are accounted for in this fund. General operating expenditures, fixed charges, and capital improvement costs that are not paid through other funds are paid from the General Fund. 22 Ammon City Council 03/16/2021Page 46 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Basis of Presentation(Continued) Street Funds i _K"4" G8&'4 #$" 84"' *9 #7798&* G9$ G8&'4 $"7"6D"' #&' "M)"&'"' G9$ *K" 79&4*$87*69& #&' renovation of thoroughfares, arterial streets, and other improvements in the City. Parks & Recreation Funds i _K"4" G8&'4 #$" 84"' *9 #7798&* G9$ G8&'4 $"7"6D"' #&' "M)"&'"' G9$ *K" N6*< )#$`4 and other recreational facilities of the City. The City has five nonmajor governmental funds. These include the Building Fund, and Fiber Local Improvement Districts #1, #2, #3, and #4. Proprietary Fund Types Proprietary funds are accounted for using the economic resources measurement focus and the accrual basis of accounting. The accounting objectives are determinations of net income, financial position, and cash flow. All assets and liabilities are included on the Statement of Net Position. The City reports the following major proprietary funds: Water Fund i _K64 G8&' #7798&*4 G9$ *K" )$9D6469& 9G F#*"$ 4"$D67"4 *9 *K" $"46'"&*4 9G *K" N6*<= :7*6D6*6"4 9G *K" fund include administration, operations, and maintenance of the water system, and billing and collection activities. Wastewater Fund i _K64 G8&' #7798&*4 G9$ *K" )$9D6469& 9G F#4*"F#*"$ 4"$D67"4 *9 *K" $"46'"&*4 9G *K" N6*<= Activities of the fund include administration, operations, and maintenance of the wastewater system, administration of the debt related to providing wastewater services, and billing and collection activities. Sanitation Fund i _K64 G8&' #7798&*4 G9$ *K" 9)"$#*69&4 9G 49;6' F#4*" 79;;"7*69& #&' '64)94#; 4"$D67"4= :;; 794*4 are financed through charges to sanitation customers. The City has one nonmajor proprietary fund. Fiber Optic Fund i _K64 G8&' #7798&*4 G9$ *K" 9)"$#*69&4 9G *K" N6*<g4 G6,"$ 9)*67 4<4*"+= :;; 794*4 F6;; ," G6&#&7"' through charges to fiber optic customers. Additionally, the City reports the following fund type: Internal service funds account for data processing provided to other departments of the City on a cost reimbursement basis. During the course of operations, the City has activity between funds for various purposes. Any residual balances outstanding at year end are reported as due from/to other funds and advances to/from other funds. While these balances are reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financials statements. Balances between the funds included in governmental activities (i.e., the governmental and internal service funds) are eliminated so that only the net amount is included as internal balances in the governmental activities column. Similarly, balances between the funds included in business-type activities (i.e., the enterprise funds) are eliminated so that only the net amount is included as internal balances in the business-type activities column. 23 Ammon City Council 03/16/2021Page 47 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Basis of Presentation(Continued) Further, certain activity occurs during the year involving transfers of resources between funds. In fund financial statements these amounts are reported at gross amounts as transfers in/out. While reported in fund financial statements, certain eliminations are made in the preparation of the government-wide financial statements. Transfers between the funds included in governmental activities are eliminated so that only the net amount is included as transfers in the governmental activities column. Similarly, balances between the funds included in business-type activities are eliminated so that only the net amount is included as transfers in the business-type activities column. Measurement Focus and Basis of Accounting The government-wide and proprietary fund financial statements are reported using the economic resources measurement focus and the accrual basis of accounting. Revenues are recorded when earned and expenses are recorded at the time liabilities are incurred, regardless of when the related cash transaction takes place. Nonexchange transactions, in which the City gives or receives value without directly receiving or giving equal value in exchange, include property taxes, grants, entitlements, and donations. On an accrual basis, revenue from property taxes is recognized in the fiscal year for which the taxes are levied. Revenue from grants, entitlements, and donations is recognized in the fiscal year in which all eligibility requirements have been satisfied. The governmental fund financial statements are reported using the current financial resources measurement focus and the modified accrual basis of accounting. Under this method, revenues are recognized when measurable and available (susceptible to accrual). "Measurable" means the amount of the transaction can be determined and "available" means collectible within the current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City considers all imposed nonexchange revenues reported in the governmental funds to be available if the revenues are collected within 60 days after the end of the current fiscal year. Expenditures are recognized when the related fund liability is incurred, except for principal and interest on general long-term debt, claims and judgments, and compensated absences, which are recognized as expenditures to the extent they have matured. General capital asset acquisitions are reported as expenditures in governmental funds. Proceeds of general long-term debt and acquisitions under capital leases are reported as other financing sources. Property taxes, sales taxes, franchise taxes, licenses, and interest associated with the current fiscal period are considered to be susceptible to accrual and so have been recognized as revenues of the current fiscal period. Entitlements are recorded as revenues when all eligibility requirements are met, including any time requirements, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). Expenditure-driven grants are recognized as revenue when the qualifying expenditures have been incurred and all other eligibility requirements have been met, and the amount is received during the period or within the availability period for this revenue source (within 60 days of year end). All other revenue items are considered to be measurable and available only when cash is received by the government. 24 Ammon City Council 03/16/2021Page 48 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Measurement Focus and Basis of Accounting(Continued) As a general rule, the effect of interfund activity has been eliminated from the government-wide financial statements. Amounts reported as program revenues include (1) charges to customers or applicants for goods, services, or privileges provided, (2) operating grants and contributions, and (3) capital grants and contributions. Internally dedicated resources are reported as general revenue rather than as program revenues. Likewise, general revenues include all taxes. Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating revenues and expenses generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal ongoing operations. The principal operating revenues of the City's enterprise funds are charges to customers for services. Operating expenses for enterprise funds include the cost of services, administrative expenses, and depreciation on capital assets. All revenues and expenses not meeting this definition are reported as nonoperating revenues. When both restricted and unrestricted resources are available for use, it is the City's policy to use restricted resources first, then unrestricted resources as they are needed. Budgetary Control Budgets are adopted on a basis consistent with generally accepted accounting principles. Annual appropriated budgets are adopted for the General, Special Revenue, and Proprietary Funds. All annual appropriations lapse at fiscal year end. The department heads submit the budget to the City Council and a public hearing is held prior to adoption of the budget. Prior to October 1, the budget is enacted through passage of an appropriation ordinance. The budget includes the General, Special Revenue, and Enterprise Funds. The level of control (level at which expenditures should not exceed budget) is the fund. The legal level of control is the appropriation ordinance. Encumbrances represent commitments related to unperformed contracts for goods or services. The City did not have any encumbrances at September 30, 2020. The General and Street Fund statements of revenues, expenditures, and changes in fund balance present a comparison of budgetary data to actual results. These reports utilize the same basis of accounting for both budgetary purposes and actual results. Cash and Investments The City considers all highly liquid investments with a maturity of three months or less when purchased to be cash equivalents. Cash also includes amounts held in the local government investment pool and money market accounts. State statutes authorize the City to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds, and repurchase agreements. Investments of the primary government consist of certificates of deposits with original maturities of greater than three months, government agency bonds, corporate bonds, and #+98&*4 K";' 6& *K" 4*#*"g4 '6D"$46G6"' ,9&' G8&'= 25 Ammon City Council 03/16/2021Page 49 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Fair Value Measurements Fair value is the price that would be received to sell an asset or paid to transfer a liability in an ordinary transaction between market participants at the measurement date. A three-tier hierarchy prioritizes the inputs used in measuring fair value. These tiers include: Level 1, defined as observable inputs such as quoted market prices in active markets; Level 2, defined as inputs other than quoted market prices in active markets that are either directly or indirectly observable; and Level 3, defined as unobservable inputs in which little or no market data exists, therefore, requiring an entity to develop its own assumptions. The asset's or liability's fair value measurement within the hierarchy is based on the lowest level of any input that is significant to the fair value measurement. Inventories and Prepaid Items Inventories are valued at cost using the first-in/first-out (FIFO) method. Prepaid items represent payments made by the City for which benefits extend beyond September 30, 2020. The costs of governmental fund type inventory and prepaid items are recorded as expenditures when purchased. Receivables Property taxes are recognized as revenue in the period for which the taxes are levied. The tax levy is used to finance operations of the City's fiscal year ended September 30, 2020. All property taxes are considered due as of the second Monday in January and are levied on the second Monday in September. Taxes are payable in two installments on December 20 and June 20 of the following year. All taxes collected within 60 days of September 30, 2020 are considered available to pay current liabilities. Amounts not collected are deferred and recognized when they become available to the City. The City's Water, Wastewater, Sanitation, and Fiber Funds' accounts receivable are reported at their gross amount. The City estimates that the amount of uncollectible accounts would not be significant to the outstanding balance, therefore no amounts have been accrued for bad debt. Other receivables in the governmental and proprietary funds are also recorded at gross. No allowance for uncollectible accounts has been provided since it is believed that the amount of such allowance would not be material. Capital Assets Purchased or constructed capital assets, including property, plant, equipment, and infrastructure (roads, bridges, and similar items) are reported at cost or estimated historical cost in the government-wide financial statements. The City defines capital assets as assets with an initial cost of more than $5,000 and an estimated life in excess of one year. 26 Ammon City Council 03/16/2021Page 50 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Capital Assets(Continued) Donated capital assets are recorded at estimated aquisition value at the date of donation. Renewals and betterments are capitalized. The costs of normal maintenance and repairs that do not add to the value of the asset or materially extend the life of the asset are not capitalized. The City received donations of streets, water, wastewater, and storm piping related to the annexation of 9 subdivisions for the year ended September 30, 2020. Additions or improvements that significantly extend the useful life of an asset, or that significantly increase the capacity of an asset are capitalized. Expenditures in the governmental funds for equipment, vehicles, real property acquisitions, improvements, and infrastructure are recorded as capital outlay. Maintenance and repairs of a routine nature are charged to expenses/expenditures as incurred and are not capitalized. Capital assets are depreciated using the straight-line method over the following estimated useful lives: Buildings30 years Infrastructure15-60 years Equipment3-15 years Vehicles5-7 years Capital assets not being depreciated include land, water rights, and construction in progress. Compensated Absences Governmental Accounting Standards Board codification specifies that a liability should be accrued for leave benefits that meet the following conditions: _K" "+);9<"$g4 9,;62#*69& $";#*6D" *9 "+);9<"" $62K*4 *9 $"7"6D" 79+)"&4#*69& G9$ G8*8$" #,4"&7"4 64 attributable to employee services already rendered The obligation related to rights that vest or accumulate Payment of the obligation is probable The amount can be reasonably estimated The City records a liability for accrued paid time off (PTO) when incurred in the government-wide and proprietary financial statements. A liability for these amounts is reported in governmental funds only if they have matured, for example, as a result of employee resignations and retirements. The City uses the vesting method to calculate the compensated absence liability. In proprietary funds, compensated absences are expended when earned. The entire amount of compensated absences is reported as a liability. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bonds payable are reported net of applicable bond premium or discount. 27 Ammon City Council 03/16/2021Page 51 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Long-Term Obligations(Continued) In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt issuances are reported as other financing sources while discounts are reported as other financing uses. Issuance costs, whether or not withheld from the actual debt proceeds received, are reported as debt service expenditures. Deferred Outflows/Inflows of Resources In addition to assets, the Statement of Financial Position will sometimes report a separate section for deferred outflows of resources. This separate financial statement element, deferred outflows of resources, represents a consumption of net position that applies to a future period(s) and so will not be recognized as an outflow of resources (expense/expenditure) until then. The City has one item that qualifies for reporting in this category and it occurs on the government-wide statement of net position. The City reports deferred outflows of resources related to pensions for its proportionate shares of collective deferred outflows of resources related to pensions and City contributions to pension plans subsequent to the measurement date of the collective net pension liability (asset). In addition to liabilities, the Statement of Financial Position will sometimes report a separate section for deferred inflows of resources. This separate financial statement element, deferred inflows of resources, represents an acquisition of net position that applies to a future period(s) and so will not be recognized as an inflow of resources (revenue) until that time. The City has one type of item, which arises only under a modified accrual basis of accounting that qualifies for reporting in this category. Accordingly, the item, unavailable revenue, is reported only in the governmental funds balance sheet. The governmental funds report unavailable revenues from property taxes. This amount is deferred and recognized as an inflow of resources in the period that the amounts become available. The City also reports deferred inflows of resources for its proportionate share of the collective deferred inflows of resources related to pensions in the government-wide statement of net position. Pension Plan For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions G$9+ J#4" I;#&g4 G6'876#$< &"* )946*69& K#D" ,""& '"*"$+6&"' 9& *K" 4#+" ,#464 #4 *K"< #$" $")9$*"' ,< *K" J#4" 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. Net Position Net position represents the difference between assets and deferred outflows of resources and liabilities and deferred inflows of resources. Net investment in capital assets consists of capital assets, net of accumulated depreciation, reduced by the outstanding balance of any long-term debt used to build or acquire the capital assets. Net position is reported as restricted when there are limitations imposed on its use through external restrictions imposed by creditors, grantors, or laws or regulations of other governments, or imposed by law through constitutional provisions or enabling legislation. ZK"& ,9*K $"4*$67*"' #&' 8&$"4*$67*"' $"498$7"4 #$" #D#6;#,;" G9$ 84"/ 6* 64 *K" N6*<g4 )9;67< *9 84" "M*"$&#;;< restricted resources first. 28 Ammon City Council 03/16/2021Page 52 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Fund Balances In the fund financial statements, governmental funds report aggregate amounts for five classifications of fund balances based on the constraints imposed on the use of these resources. The nonspendable fund balance 7;#446G67#*69& 6&7;8'"4 #+98&*4 *K#* 7#&&9* ," 4)"&* ,"7#84" *K"< #$" "6*K"$ \[#\] &9* 6& 4)"&'#,;" G9$+ i )$")#6' items or inventories or (b) legally or contractually required to be maintained intact. The spendable portion of the fund balance comprises the remaining four classifications: restricted, committed, assigned, and unassigned. Restricted fund balance: This classification reflects the constraints imposed on resources either (a) externally by creditors, grantors, contributors, or laws or regulations of other governments or (b) imposed by law through constitutional provisions or enabling legislation. Committed fund balance: These amounts can only be used for specific purposes pursuant to constraints 6+)94"' ,< *K" 9$'6&#&7"4 9G *K" N6*< N98&76; i *K" N6*<g4 K62K"4* ;"D"; 9G '"76469&E+#`6&2 #8*K9$6*<= _K94" committed amounts cannot be used for any other purpose unless the City Council removes the specified use by taking the same type of action that imposed the original commitment. This classification also includes contractual obligations to the extent that existing resources in the fund have been specifically committed for use in satisfying those contractual requirements. Assigned fund balance: _K64 7;#446G67#*69& $"G;"7*4 *K" #+98&*4 79&4*$#6&"' ,< *K" N6*<g4 b6&*"&*c *9 ," 84"' for specific purposes, but the amounts are neither restricted nor committed. The City Council has the authority to assign amounts to be used for specific purposes. Assigned fund balances include all remaining amounts (except negative balances) that are reported in governmental funds, other than the General Fund, that are not classified as nonspendable and are neither restricted nor committed. Unassigned fund balance: This fund balance is the residual classification for the General Fund. It is also used to report negative fund balances in other governmental funds. ZK"& ,9*K $"4*$67*"' #&' 8&$"4*$67*"' $"498$7"4 #$" #D#6;#,;" G9$ 84"/ 6* 64 *K" N6*<g4 )9;67< *9 84" "M*"$&#;;< $"4*$67*"' $"498$7"4 G6$4*/ *K"& 8&$"4*$67*"' $"498$7"4 i 79++6**"'/ #4462&"'/ #&' 8&#4462&"' i 6& 9$'"$ #4 needed. Risk Management The City is exposed to a considerable number of risks of loss, including: (a) damage to and loss of property and contents; (b) employee torts; (c) professional liability, i.e. errors and omissions; (d) environmental damage; (e) F9$`"$4g 79+)"&4#*69&/ 6="= "+);9<"" 6&V8$6"4^ #&' \[G\] +"'67#; 6&48$#&7" 794*4 9G "+);9<""4= N9++"$76#; )9;676"4 transferring the risks of loss, except for relatively small deductible amounts, are purchased for property and content damage, employee torts, and professional liabilities. Settled claims resulting from these risks have not exceeded commercial insurance coverage in any of the past three fiscal years. 29 Ammon City Council 03/16/2021Page 53 of 118 City of Ammon Notes to Financial Statements Note 1:Summary of Significant Accounting Policies(Continued) Use of Estimates The preparation of financial statements in accordance with accounting principles generally accepted in the United States requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosure of contingent assets and liabilities at the date of the financial statements and the reported amounts of revenues and expenditures during the reporting period. Actual results could differ from those estimates. Subsequent Events The City has evaluated subsequent events through March 18, 2021, which is the date the financial statements were available to be issued. Effective October 1, 2020, the City turned over the operations of the Fire Department to the Bonneville County Fire Protection District #1. All associated revenues and expenditures will be taken over by that entity. There were no other subsequent-type events required to be disclosed. Note 2:Cash and Investments Deposits with Financial Institutions Custodial credit risk-deposits. In the case of deposits, this is the risk that in the event of a bank failure, the City's deposits may not be returned to it. The City has reduced its concentration of credit risk by using several financial institutions. The formal policy as of September 30, 2020 was to limit deposits with any one bank or credit union to the maximum FDIC/SPIC insurable amount. As of September 30, 2020, $1,534,328, including the money market, was not insured or collateralized. Investments The government utilizes a pooled investment concept for all its funds to maximize its investment program. Investment income from this internal pooling is allocated to the respective funds based upon the sources of funds 6&D"4*"'= _K" 7#$$<6&2 D#;8" 9G *K" N6*<g4 6&D"4*+"&*4 #* <"#$ "&' F#4 a0-/AOQ/0Q. #&' *K" G#6$ D#;8" F#4 $23,957,270. The amount not covered by insurancewas $11,521,341! The City invests in the Local Government Investment Pool (LGIP) through the Idaho State Treasurer. All funds are 6&D"4*"' ,< *K" ?'#K9 (*#*" _$"#48$"$g4 9GG67" 6& #779$'#&7" F6*K ("7*69&4 PQE>0>. #&' PQE>0>.: 9G *K" ?'#K9 N9'"= :;; 6&D"4*+"&*4 G9$ *K" TC?I #$" 79;;#*"$#;6d"' F6*K 4"78$6*6"4 K";' ,< *K" TC?Ig4 4#G"`"")6&2 #2"&* 6& *K" TC?Ig4 &#+"= _K" 6&D"4*+"&*4 K";' ,< *K" TC?I #$" 7#$$6"' #* 794*/ FK67K 64 &9* +#*"$6#;;< '6GG"$"&* *K#& G#6$ D#;8" \['"*"$+6&"' ,< *K" ?'#K9 (*#*" _$"#48$"$g4 9GG67"\]= _K" 6&D"4*+"&*4 #$" 48,V"7* *9 $64` G$9+ +#$`"* #&' 6&*"$"4* rate fluctuations. The City has included this in cash. :;; 9G *K" N6*<g4 6&D"4*+"&*4 *K#* #$" +"#48$"' 9$ '647;94"' #* G#6$ D#;8" G#;; F6*K6& T"D"; 0 9G *K" G#6$ D#;8" hierarchy. The City invests in the Diversified Bond Fund (DBF) through the Idaho State Treasurer. Amounts held by the DBF were held in the following investments: corporate securities, mortgage-backed securities, asset-backed securities, commercial mortgage-backed securities, U.S. Government agency securities, U.S. Treasury securities money market funds, and accrued interest. The City had $113,326 invested in the DBF at September 30, 2020. 30 Ammon City Council 03/16/2021Page 54 of 118 City of Ammon Notes to Financial Statements Note 2:Cash and Investments(Continued) _K" 6&D"4*+"&*4 K";' ,< *K" 5JB #$" 7#$$6"' #* G#6$ D#;8" \['"*"$+6&"' ,< *K" ?'#K9 (*#*" _$"#48$"$g4 9GG67"\]= These investments are subject to risk from market and rate fluctuations. The weighted average duration was 2.88 years at September 30, 2020. _K" N6*<g4 6&D"4*+"&* #7798&*4/ 6&7;8'6&2 29D"$&+"&* #2"&76"4/ 79++"$76#; )#)"$/ 79$)9$#*" ,9&'4/ 7"$*6G67#*"4 of deposit, and money market funds, are held with Moreton Asset Management. The money market funds are included as cash in the financial statements. The weighted average duration was 1.79 years. As of September 30, 2020, the City had the following investments held with Moreton Asset Management showing the distribution by maturity and rating: Remaining Maturity (in Years) 12 Months1-55-10 Total Fair Investment Typeor LessYearsYears Value Rating State DBF Fund$-113,326$113,326AAA Corporate Bonds$3,482,8527,420,72110,903,573AA-/A+/A/A-/BBB+ Agency Bonds$504,443504,443AAA Certificates of Deposit1,340,02911,095,89912,435,928NA/NR/A-1+/A-2/A-3/D Total Investments5,327,32418,629,946-23,957,270 Plus cash4,067,191 Total cash and investments$28,024,461 Interest rate risk. Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an investment. Generally, the longer the maturity of an investment, the greater the sensitivity of its fair value to changes in market interest rates. The City manages its exposure to declines in fair values by limiting the weighted average maturity of its investment portfolio. Credit risk. Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligation to the holder of the investment. This is measured by the assignment of a rating by a nationally recognized statistical $#*6&2 9$2#&6d#*69&= I$"4"&*"' #,9D" 64 *K" #7*8#; $#*6&2 #4 9G <"#$E"&' G9$ "#7K 6&D"4*+"&* *<)"= _K" N6*<g4 investment policy requires investments to be in conformity with Idaho Statue Title 50 Chapter 10 section 13. Concentration of credit risk. The City's investment policy does not allow for an investment in any one issuer that is in excess of 5 percent of the City's total investments. The City utilizes a pooled investment concept for all its funds to maximize its investment program. Investment income from this internal pooling is allocated to the respective funds based upon the sources of funds invested. Custodial credit risk-investments. For an investment, this is the risk that, in the event of the failure of the counterparty, the City will not be able to recover the value of its investments or collateral securities that are in the possession of an outside party. The City has a deposit policy to minimize custodial credit risk. Foreign Currency Risk. The City has no foreign currency risk for investments at year end. 31 Ammon City Council 03/16/2021Page 55 of 118 City of Ammon Notes to Financial Statements Note 3:Capital Assets Capital asset balances and activity for the year ended September 30, 2020, were as follows: BalanceDecreases andBalance Governmental Activities:09/30/19IncreasesTransfers09/30/20 Capital assets, not being depreciated: Land918,686--918,686 Construction in progress727,699196,446(727,699)196,446 Total capital assets, not being depreciated$1,646,385$196,446$(727,699)$1,115,132 Capital assets, being depreciated: Buildings and improvements2,869,087300,720(24,108)3,145,699 Infrastructure41,964,6814,822,812727,69947,515,192 Machinery and equipment4,140,538228,737(66,683)4,302,592 Total capital assets, being depreciated48,974,3065,352,269636,90854,963,483 Accumulated depreciation: Buildings and improvements(1,321,125)(116,042)24,108(1,413,059) Infrastructure(29,449,314)(1,058,393)-(30,507,707) Machinery and equipment(2,547,159)(307,995)63,282(2,791,872) Total accumulated depreciation(33,317,598)(1,482,430)87,390(34,712,638) Total capital assets, being depreciated, net$15,656,708$3,869,839$724,298$20,250,845 Governmental activities capital assets, net17,303,0934,066,285(3,401)21,365,977 BalanceDecreases andBalance Business-type Activities:09/30/19IncreasesTransfers09/30/20 Capital assets, not being depreciated: Land and water rights414,826148,588-563,414 Construction in progress125,5721,095,731-1,221,303 Total capital assets, not being depreciated$540,398$1,244,319$-$1,784,717 Capital assets, being depreciated: Buildings and improvements8,384,131--8,384,131 Infrastructure27,508,9586,031,956-33,540,914 Machinery and equipment5,701,521551,624(244,380)6,008,765 Total capital assets, being depreciated41,594,6106,583,580(244,380)47,933,810 Accumulated depreciation: Buildings and improvements(2,627,381)(247,877)-(2,875,258) Infrastructure(7,203,308)(654,904)-(7,858,212) Machinery and equipment(3,247,765)(384,932)244,380(3,388,317) Total accumulated depreciation(13,078,454)(1,287,713)244,380(14,121,787) Total capital assets, being depreciated, net$28,516,156$5,295,867$-$33,812,023 Business-type activities capital assets, net29,056,5546,540,186-35,596,740 32 Ammon City Council 03/16/2021Page 56 of 118 City of Ammon Notes to Financial Statements Note 3:Capital Assets(Continued) Depreciation expense was charged to the governmental functions as follows: Governmental activities: General government32,937 Fire protection129,641 Building7,109 Parks and recreation85,281 Highway and streets1,189,105 Capital assets held by the government's internal service funds which are charged to the various functions based on their usage of the assets:38,357 Total depreciation expense, governmental activities1,482,430 Business-Type activities: Water757,205 Wastewater342,169 Sanitation110,438 Fiber Optic77,901 Total depreciation expense, business-type activities1,287,713 Note 4:Lease Agreements The City has a lease agreement with Cat Financial to lease a Caterpillar 305E2CR for 5 years beginning June 20, 2016, through June 20, 2020. The lease calls for annual payments of $7,701 with a $40,000 payment on June 20, 2021, if the City elects to retain the equipment when the lease ends on May 31, 2021. The lease is subject to non- appropriation. The City has a lease agreement with Cat Financial to lease a Caterpillar 924K for 5 years beginning June 20, 2016, through June 20, 2020. The lease calls for annual payments of $13,398 with a $75,000 payment on June 20, 2021, if the City elects to retain the equipment when the lease ends on May 31, 2021. The lease is subject to non- appropriation. 33 Ammon City Council 03/16/2021Page 57 of 118 City of Ammon Notes to Financial Statements Note 5:Pension Plan Plan Description The City contributes to the Base Plan which is a cost sharing multiple-employer defined benefit pension plan administered by Public Employee Retirement System of Idaho (PERSI or System) that covers substantially all employees of the State of Idaho, its agencies and various participating political subdivisions. The cost to administer the plan is financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report that includes financial statements and the required supplementary information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov. Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan members with at least ten years of service and three members who are Idaho citizens not members of the Base Plan except by reason of having served on the Board. Pension Benefits The Base Plan provides retirement, disability, death, and survivor benefits of eligible members or beneficiaries. J"&"G6*4 #$" ,#4"' 9& +"+,"$4g <"#$4 9G 4"$D67"/ #2"/ #&' K62K"4* #D"$#2" 4#;#$<= 1"+,"$4 ,"79+" G8;;< D"4*"' in their retirement benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for retirement benefits upon attainment of the ages specified for their employment classification. The annual service retirement allowance for each month of credited service is 2.0% (2.3% for police/firefighters) of the average monthly salary for the highest consecutive 42 months. The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base Plan is required to provide a 1% minimum cost of living increase per year provided the Consumer Price Index increases 1% or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the Idaho Legislature. Member and Employer Contributions Member and employer contributions paid to the Base Plan are set by statute and are established as a percent of covered compensation. Contribution rates are determined by the PERSI Board within limitations, as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as percentages of annual covered payroll) that are adequate to accumulate sufficient assets to pay benefits when due. The contribution rates for employees are set by statute at 60% of the employer rate for general employees and 72% for police and firefighters. As of June 30, 2020, it was 7.16% and 8.81% for police and firefighters. The employer contribution rate is set by the Retirement Board and was 11.94% for general employees and 12.28% for )9;67" #&' G6$"G62K*"$4= _K" N6*<g4 79&*$6,8*69&4 F"$" a--P/Q.. G9$ *K" <"#$ "&'"' (")*"+,"$ -./ 0.0.= 34 Ammon City Council 03/16/2021Page 58 of 118 City of Ammon Notes to Financial Statements Note 5:Pension Plan(Continued) Pension Liabilities, Pension Expense (Revenue), and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions At September 30, 2020, the City reported a liability for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2020, and the total pension liability used to calculate the net )"&469& ;6#,6;6*< F#4 '"*"$+6&"' ,< #& #7*8#$6#; D#;8#*69& #4 9G *K#* '#*"= _K" N6*<g4 )$9)9$*69& 9G *K" &"* )"&469& ;6#,6;6*< F#4 ,#4"' 9& *K" N6*<g4 4K#$" 9G 79&*$6,8*69&4 6& *K" J#4" I;#& )"&469& );#& $";#*6D" *9 *K" *9*#; 79&*$6,8*69&4 9G #;; )#$*676)#*6&2 I%@(? J#4" I;#& "+);9<"$4= :* k8&" -./ 0.0./ *K" N6*<g4 )$9)9$*69& F#4 =.QQ-Q. percent. For the year ended September 30, 2020, the City recognized pension expense of $750,124. At September 30, 2020, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: DeferredDeferred Outflows ofInflows of ResourcesResources Differences between expected and actual experience$140,372$- Changes in assumptions or other inputs30,384- Net difference between projected and actual earnings on pension plan investments205,92958,664 City contributions subsequent to the measurement date95,515- Total$472,200$58,664 $95,515 reported as deferred outflows of resources related to pensions resulting from Employer contributions subsequent to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30, 2021. The average of the expected remaining service lives of all employees that are provided with pensions through the System (active and inactive employees) determined at July 1, 2018, the beginning of the measurement period ended June 30, 2019, is 4.8 years and 4.8 years for the measurement period June 30, 2020. Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended September 30, 2021$5,802 202275,681 2023102,718 2024$133,820 35 Ammon City Council 03/16/2021Page 59 of 118 City of Ammon Notes to Financial Statements Note 5:Pension Plan(Continued) Actuarial Assumptions Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll normal costs are determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the actuarial present value of the projected benefits of each individual included in the actuarial D#;8#*69& 64 #;;97#*"' #4 # ;"D"; )"$7"&*#2" 9G "#7K <"#$g4 "#$&6&24 9G *K" 6&'6D6'8#; ,"*F""& "&*$< #2" #&' 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, 2020, actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Inflation3.00% Salary increases3.75% Salary inflation3.75% Investment rate of return 7.05%, net of investment expenses Cost-of-living adjustments1% 19$*#;6*< $#*"4 F"$" ,#4"' 9& *K" @I i 0... 79+,6&"' *#,;" G9$ K"#;*K< +#;"4 9$ G"+#;"4 #4 #))$9)$6#*" F6*K the following offsets: Set back 3 years for teachers No offset for male fire and police Forward one year for female fire and police Set back one year for all general employees and all beneficiaries An experience study was performed for the period July 1, 2013, through June 30, 2017, which reviewed all economic and demographic assumptions other than mortality. The Total Pension Liability as of June 30, 2020, is based on the results of an actuarial valuation date of July 1, 2020. The long-term expected rate of return on pension plan investments was determined using the building block approach and a forward-looking model in which best estimate rates or expected future real rates of return (expected returns, net of pension plan investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long-term expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding expected inflation. Even though history provides a valuable perspective for setting the investment return assumption, the System relies primarily on an approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers and trustees to develop capital market assumptions in analyzing the (<4*"+g4 #44"* #;;97#*69&= _K" #448+)*69&4 #&' *K" (<4*"+g4 G9$+#; )9;67< G9$ #44"* #;;97#*69& #$" 4K9F& ,";9F= _K" G9$+#; #44"* #;;97#*69& )9;67< 64 49+"FK#* +9$" 79&4"$D#*6D" *K#& *K" 78$$"&* #;;97#*69& 9G (<4*"+g4 #44"*4= 36 Ammon City Council 03/16/2021Page 60 of 118 City of Ammon Notes to Financial Statements Note 5:Pension Plan(Continued) 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 2020. Long-TermLong-Term Expected NominalExpected Real TargetRate of ReturnRate of Return Asset Class Allocation(Arithmetic)(Arithmetic) Core Fixed Income30.00%2.80%0.55% Broad US Equities%55.00%8.55%6.30 Developed Foreign Equities%15.00%8.70%6.45 Assumed Inflation - Mean%2.25%2.25 Assumed Inflation - Standard Deviation%1.50%1.50 Portfolio Arithmetic Mean Return%6.85%4.60 Portfolio Standard Deviation%12.33%12.33 Portfolio Long-Term (Geometric) Expected Rate of Return%6.25%3.89 Assumed Investment Expenses%0.40%0.40 Portfolio Long-Term (Geometric) Expected Rate of Return, Net of Investment Expenses5.85%3.49% Discount Rate The discount rate used to measure the total pension liability was 7.05%. The projection of cash flows used to determine the discount rate assumed that contributions from plan members will be made at the current 79&*$6,8*69& $#*"= J#4"' 9& *K"4" #448+)*69&4/ *K" )"&469& );#&4g &"* )946*69& F#4 )$9V"7*"' *9 ," #D#6;#,;" *9 make all projected future benefit payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was applied to all period of projected benefit payments to determine the total pension liability. The long-term expected rate of return was determined net of pension plan investment expense but without reduction for pension plan administrative expense. .$&0,(,#,(E "2 (G$ J'=4"E$%R0 =%"="%(,"&/($ 0G/%$ "2 (G$ &$( =$&0,"& 4,/@,4,(E (" <G/&-$0 ,& (G$ +,0<"*&( %/($D _K" G9;;9F6&2 )$"4"&*4 *K" %+);9<"$g4 )$9)9$*69&#*" 4K#$" 9G *K" &"* )"&469& ;6#,6;6*< 7#;78;#*"' 846&2 *K" '64798&* $#*" 9G Q=.O )"$7"&*/ #4 F";; #4 FK#* *K" %+);9<"$g4 )$9)9$*69&#*" 4K#$" 9G *K" &"* )"&469& ;6#,6;6*< would be if it were calculated using a discount rate that is 1-percentage-point lower (6.05 percent) or 1- percentage-point higher (8.05 percent) than the current rate: 1% Decrease1% Decrease1% Decrease (6.05%)(7.05%)(8.05%) Employer's proportionate share of the net pension liability (asset)$3,684,408$1,796,636$235,756 37 Ammon City Council 03/16/2021Page 61 of 118 City of Ammon Notes to Financial Statements Note 5:Pension Plan(Continued) Pension plan fiduciary net position 5"*#6;"' 6&G9$+#*69& #,98* *K" )"&469& );#&g4 G6'876#$< &"* )946*69& 64 #D#6;#,;" 6& *K" 4")#$#*";< 6448"' I%@(? 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. Payables to the pension plan At September 30, 2020, the City reported payables to the defined benefit pension plan of $0 for legally required employer contributions and $0 for legally required employee contributions which had been withheld from employee wages but not yet remitted to PERSI. Note 6:Interfund Balances and Activity Interfund receivable and payable balances in the fund financial statements on September 30, 2020, are as follows: FundReceivablePayable General Fund1,937,354- LID #1 Fund-613,732 LID #4 Fund-824,222 Fiber optic fund-499,400 Total1,937,3541,937,354 The City loaned funds to support the creation and infrastructure for the LID funds until the loans can be converted into bonds or are repaid. The General fund also loaned money to the Fiber optic fund to cover infrastructure costs that will be reimbursed as additional users are brought onto the system. No repayment terms have been set for the repayments of LID #4 and the fiber optic fund as of the date of these financials. Repayment terms for the LID #1 loan from the general fund are set at annual principal and interest payments of $44,624 for 20 years. Interest for this loan is set at 3% per annum. The second payment was made during the 2020 fiscal year. In the statement of net position, amounts reported in fund balance sheets as interfund balances have been eliminated within the governmental activities columns. Interfund transfers at September 30, 2020, were as follows: FundTransfer InTransfer Out Major fund - General fund-576,284 Parks and recreation576,284- Total576,284576,284 The General fund transferred $531,284 to the Parks fund to assist cash flows within the City, and an additional $45,000 to the Parks fund as matching funds for a project grant received this year. 38 Ammon City Council 03/16/2021Page 62 of 118 City of Ammon Notes to Financial Statements Note 7:Long-Term Obligations Compensated Absences - The City's benefits include a provision for compensated absences. The liability for this benefit is liquidated by the fund in which the employee is paid from. The following is a summary of the changes in long-term obligations for the year ended September 30, 2020 for the governmental activities: Balance atBalance atDue Within October 1, 2019AdditionsPaymentsSeptember 30, 2020One Year Compensated absences$98,092$-$(14,603)$83,489$83,489 Fiber Bond #2570,000-(17,238)552,76218,100 Premium on Fiber Bond27,067-(818)26,249860 Fiber Bond #3-783,196-783,19642,481 Total$695,159$783,196$(32,659)$1,445,696$144,930 Governmental Funds: The City entered into a $570,000 bond through Neighborly Securities, Inc. on November 9, 2018. The bond, part of the Fiber optic LID #2, requires annual payments for 20 years of $45,738 and has an interest rate of 5%. This bond carries a premium in the amount of $27,067 that will be amortized over the life of the bond. In June 2020, the City entered into a bond agreement with Washington Federal Bank to finance the LID #3 in the amount of $783,196. The bond requires annual payments for 15 years of $65,038 and has an interest rate of 2.88%. The following is a schedule of principal and interest payments on long-term debt to maturity: Year Ended September 30,PrincipalInterest TotalPremium 202160,58250,194$110,776$860 202262,71048,066110,776902 202364,91945,857110,776948 202467,21243,564110,776995 202569,59241,184110,7761,045 2026-2030386,968166,911553,8796,061 2031-2035461,79092,089553,8797,736 2036-2039162,18520,768182,9537,702 Total1,335,958508,633$1,844,591$26,249 Business-Type Enterprise Funds: The City entered into a $15,000,000 loan with the Department of Environmental Quality (DEQ) for improvements to the water system on March 8, 2008. This loan was closed for $14,287,000 on January 5, 2012, and the City began repaying the loan. The loan is secured by a revenue bond in the amount of $14,287,000. Within five years 9G )$9V"7* 79+);"*69&/ *K" N6*< 64 $"S86$"' *9 "4*#,;64K # $"4"$D" #7798&* 6& #& #+98&* "S8#; *9 > <"#$g4 )#<+"&* of principal and interest and the City has established this reserve as of the year ended September 30, 2014, for $955,302. The loan requires biannual payments of principal and interest at 3.00% to be amortized over 20 years from the completion of the project. The required payments are $477,651 due bi-annually in January and July. 39 Ammon City Council 03/16/2021Page 63 of 118 City of Ammon Notes to Financial Statements Note 7:Long-Term Obligations(Continued) On July 8, 2020, this bond was paid off by a refunding bond in the amount of $8,888,384 through LPMorgan Chase Bank, NA. The new interest rate is 1.21% per year for 11 years, and created a cash flow savings of $930,308 for the City. The required principal and interest payments are $431,752 due bi-annually in November and May. _K" N6*< "&*"$"' 6&*9 # a>O/.../... ;9#& F6*K *K" 5")#$*+"&* 9G %&D6$9&+"&*#; X8#;6*< \[5%X\] *9 G8&' *K" N6*<g4 portion of the regionalization project (Eastern Idaho Regional Wastewater Authority) on April 24, 2008. The loan was increased to $25,000,000 as confirmed by judicial review. This loan was closed for $23,213,934 on April 24, 2013, and the City began repaying the loan. The City is required to establish at the time of the issuance of the bond a reserve fund in an amount equal to 1 <"#$g4 )#<+"&* 9G )$6&76)#; #&' 6&*"$"4* #&' *K" N6*< "4*#,;64K"' # $"4"$D" 6& *K" #+98&* 9G a>/.PR/O0- #4 9G *K" year ended September 30, 2014. The loan requires biannual payments of principal and interest at 2.25% to be amortized over 30 years from the completion of the project. The required payments are $534,261 due in October and April. The following is a schedule of principal and interest payments on long-term debt to maturity: Year Ended September 30,PrincipalInterestTotal 2021$1,384,054$547,971$1,932,025 20221,440,815491,2101,932,025 20231,465,363466,6621,932,025 20241,489,380442,6451,932,025 20251,515,818416,2071,932,025 2026-20307,977,3311,682,7959,660,126 2031-20355,161,8261,044,2876,206,113 2036-20404,815,876526,7345,342,610 2041-20421,983,27154,4622,037,733 Total$27,233,734$5,672,973$32,906,707 Following is a summary of the changes in long-term debt for the year ended September 30, 2020 for the enterprise funds: Beginning BalanceEnding BalanceDue Within Governmental activities:October 1, 2019IncreaseDecreaseSeptember 30, 2020One Year Revenue Bond - Water$9,508,881$-$(9,508,881)$-$- Refunding Bond - Water-8,888,384-8,888,384778,378 Revenue Bond - Sewer19,037,206-(691,856)18,345,350605,676 Total$28,546,087$8,888,384$(10,200,737)$27,233,734$1,384,054 The City has pledged future water customer revenues, net of specified operating expenses, to repay the $8,888,384 water revenue refunding bond. Annual principal and interest payments are expected to require less than 100% of net revenues. The City has pledged future wastewater customer revenues, net of specified operating expenses, to repay the $18,345,350 wastewater revenue bond. Annual principal and interest payments are expected to require less than 100% of net revenues. 40 Ammon City Council 03/16/2021Page 64 of 118 City of Ammon Notes to Financial Statements Note 8:Deficit Fund Balance The Fiber Optic Local Improvement District #1 is in a deficit of $522,119 at September 30, 2020. This amount is expected to be repaid through the collections in the LID over time. The Fiber Optic Local Improvement District #4 is in a deficit of $833,803 at September 30, 2020. This amount is expected to be repaid through the collections in the LID over time. The Parks Department is in a deficit of $13,845 at September 30, 2020. This amount is expected to be repaid through transfers and fees over time. Note 9:Fund Balance According to Governmental Accounting Standards, fund balances are to be classified into five major classifications; Nonspendable Fund Balance, Restricted Fund Balance, Committed Fund Balance, Assigned Fund Balance, and Unassigned Fund Balance. The City's net position at September 30, 2020 is broken out as follows: Parks andNon-Major Governmental Funds GeneralStreetrecreationGovernmentalTotal Nonspendable Prepaid expenses$26,599$-$-$-$26,599 Restricted for: East Hills15,826---15,826 Development commitments-110,780-2,151112,931 Committed for: Street projects-1,327,258--1,327,258 Assigned For Asset replacement---335,360335,360 Fire department278,031---278,031 Other---184,348184,348 Unassigned10,380,608-(13,845)(1,355,922)9,010,841 Total$10,701,064$1,438,038$(13,845)$(834,063)$11,291,194 Internal Business-type Funds WaterWastewaterSanitationFiberservice FundTotal Net investment in capital assets$15,350,545$-$617,055$1,625,551$179,479$17,772,630 Restricted for: Bond Reserve-1,068,523---1,068,523 Committed for: Assigned For Bond reserve863,504----863,504 Unassigned3,579,341(850,897)2,651,9427,365138,4885,526,239 Total$19,793,390$217,626$3,268,997$1,632,916$317,967$25,230,896 41 Ammon City Council 03/16/2021Page 65 of 118 City of Ammon Notes to Financial Statements As of September 30, 2020, the City had restricted street funds for the following projects: Projects:2020 Snowcrest Development$63,073 Hawk's Landing47,707 Developer Deposits2,151 Total$112,931 Note 10:Jointly Governed Organization The City is participating in a joint venture with the City of Shelley, Bingham County, and Bonneville County for a treatment plant for wastewater. The City entered into a joint powers agreement to provide joint financing, design, acquisition, construction, management, and operation of a regional wastewater treatment and disposal facility. A separate legal entity, Eastern Idaho Regional Wastewater Authority (EIRWWA), was created. It is governed by a board made up of representatives from each of the members of the joint powers agreement. Capitalized assets acquired by the members of the joint powers agreement for EIRWWA during the construction phase are donated to the Authority as that phase becomes operational. The Board of the EIRWWA assesses and collects from each participating member discharge/hookup fees, operation and maintenance fees, and fees to pay for costs in excess of defined equivalent residential unit (ERU) allocations each year. Each member must collect, as a minimum, discharge/hookup fees, and operation and maintenance fees established by the board and remit them to the Authority. Each member may also establish its own operation and maintenance fees and discharge/hookup fees in addition to those determined by the board as well as debt service fees. In the event of federal, state, or local court action concerning the facility, each member will assume responsibility for such litigation in a direct proportion to the percentage of use of the system. If the facility needs to expand in the future and the EIRWWA does not have adequate funds in their reserve fund accumulated from the discharge/hookup fees, each member of the joint powers agreement will pay additional funds necessary to construct the complete next phase of the development of the facility. During the fiscal year ended September 30, 2010, the facility began accepting flow from the City of Shelley, Bonneville County, and Bingham County. As per the joint powers agreement, the City of Ammon distributed the capitalized assets acquired during the construction of the treatment plant to the Authority ($9,564,999). The initial capitalization of the EIRWWA as of September 30, 2010, was $27,863,728. During the fiscal year ended September 30, 2012, the City connected to the treatment plant and distributed the capitalized assets acquired during the construction of the Eastern Interceptor line of $17,480,587 and contributed an additional $809,659 during the year ended September 30, 2013. 42 Ammon City Council 03/16/2021Page 66 of 118 City of Ammon Notes to Financial Statements Note 10:Jointly Governed Organization(Continued) The costs of the operations of the EIRWWA are being allocated based on the users of the system. Currently, this results in 70% being allocated to the City of Ammon. The City of Ammon paid $858,774 for flow charges and $771,528 for the capacity replacement fees the City collected for EIRWWA during the 2019-2020 fiscal year. The Eastern Idaho Regional Wastewater Authority has a fiscal year end of September 30. Financial statements are available at: EIRWWA 618 E 1250 N Shelley, ID 83274 Note 11:Ammon Urban Renewal Agency Reporting Entity. The component unit in the government-wide financial statements includes the financial data of *K" :++9& W$,#& @"&"F#; :2"&7< \[:2"&7<\]/ *K" N6*<g4 9&;< '647$"*";< )$"4"&*"' 79+)9&"&* 8&6*= ?* 64 $")9$*"' in a separate column to emphasize that it is legally separate from the City in accordance with state urban renewal law. Summary of Significant Accounting Policies. The basis of accounting for the government-wide financial statements is the accrual basis of accounting. Cash and Investments. :* (")*"+,"$ -./ 0.0./ *K" 7#$$<6&2 #+98&* #&' ,#&` ,#;#&7" 9G *K" :2"&7<g4 '")946*4 was $26,730. The entire balance was covered by federal depository insurance. Bonds Payable. The Agency issued $2,935,000 of Multi-mode Variable Rate Revenue Allocation (Tax Increment) Bonds, Series 1999A in July 1999. The payment on these bonds is interest only, until maturity at August 1, 2024. The interest rate on these bonds is variable. The Agency exercised their optional redemption rights and redeemed $2,670,000 of these bonds since original issue bringing the principal remaining balance to $265,000. Restricted Fund Balance. A portion of the fund balance of the Debt Service Reserve Fund was created to segregate a portion of fund balance for debt service, including both principal and interest payments. Notes Payable. On January 28, 1998, the Agency entered into a Limited Recourse Promissory Note (Phase I Note, Series 1997A Project Note) payable in the amount of $917,150 to CPI / Ammon Limited Partnership. The note bears interest at 9.0%. The principal balance on the note at September 30, 2020, is $917,150. Future debt service payments on the note are not specified. On January 28, 1998, the Agency entered into a Limited Recourse Promissory Note (Phase I Note, Bond Project Series 1997B Project) payable in the amount of $46,915 to CPI / Ammon Limited Partnership. The note bears interest at 5.88%. The principal balance on the note at September 30, 2020, is $46,915. Future debt service payments on the note are not specified. The recourse of CPI / Ammon Limited Partnership for payment on these notes is limited solely to the funds in the Revenue Allocation Fund, after payment of interest and principal on the bonds and payments to fund the :'+6&64*$#*6D" B8&'= _K" :2"&7<g4 9,;62#*69& *9 +#`" $"D"&8" #;;97#*69& )#<+"&*4 *9 NI? f :++9& T6+6*"' Partnership terminates with taxes collected and paid to the Agency for the calendar year beginning January 1, 2024. Interest accrued on these notes through September 30, 2020, was approximately $5,683,206. 43 Ammon City Council 03/16/2021Page 67 of 118 City of Ammon Notes to Financial Statements Note 11:Ammon Urban Renewal Agency(Continued) Changes in General Long-Term Debt. A summary of the changes in the General Long-term Debt is as follows: Series 1999ANotes BondsPayable Balance at October 1, 2019545,000964,065 Principal payment280,000 Balance at September 30, 2020265,000964,065 Letter-of-Credit. The Agency entered into an irrevocable direct-pay letter-of-credit dated July 21, 1999, with Wells Fargo Bank in order to secure and facilitate payment of principal and interest on the Series 1999 Bonds (the J9&'4\]= _K" #2$""+"&* #+98&* 64 &9* *9 "M7""' *K" 98*4*#&'6&2 )$6&76)#; #+98&* 9G *K" J9&'4 #&' LO '#<4g interest calculated at 12% per annum. The letter-of-credit has been extended until August 1, 2021. The letter-of- credit fee is due in advance on August 1 of each year and is equal to 2% of the outstanding principal of the Bonds );84 LO '#<4g 6&*"$"4*= _K" ;"**"$E9GE7$"'6* G""4 6&78$$"' G9$ *K" <"#$ "&'"' (")*"+,"$ -./ 0.0./ F#4 a>>/LA>= Economic Dependency. The Agency receives approximately 82% of its tax revenue from three entities. Property Tax Revenue. Current property tax revenue is not meeting original expectations. When the Series 1999 Bonds and other notes payable were entered into, property tax revenue was expected to have increased significantly enough to make the principal payments as well as the interest. The required interest payments are being made on the bonds as well as principal payments as cash flows permit, the Agency currently expects to pay the Bonds in full, however, will not be able to make the entire principal balance on the Note Payable in 2024 if property tax revenues do not increase significantly. The Agency does not expect to be able to pay any interest accrued on the Note Payable. 44 Ammon City Council 03/16/2021Page 68 of 118 Required Supplemental Information Ammon City Council 03/16/2021Page 69 of 118 > UJT ?M ?SH WW NJ N ! >?@@A?BBC>?DED?AAFC@?ABG H A@?@FA A@B?BBBACA?ACD I J FK?BBC C@?>BBABF?>BC LJAKA?EAF A?G@A?ECDA?DF>?@@> H EKB BEKB EB?BDCKC?BDDAC?BBF M J A@C?B>>KKD?E>DFGF?EBG N O FBB?BBBAG@?BDBA>A?DAB P >FK?CGKAE@?EAC@G?>KD Q K?CG>?EC@C?B@@?@KEEAC?F@C ! NJA?F@@?EGDA?@K@?B@>ECD?CBF IOJF>?BC> A?GEE?FKGA?GA>?>DK A?>>@?FDEDDK?AGE>FF?>>B RA>G?FCEA>A?AAAC?>KF MABF?>ABKD?GGCEF?EFE S>A>?AKF >KE?KBBE>?FEG Q E?@EC?FBEE?G@@?G@KKG?KAD T @>C?ACEA?FBB?BCDEGF?DBK !! KDF?>@GKGC?>@EAG?BBF T H H >F>?@GGG>F?G@KEDB?DB@ A?>BAD D?DGG?>GD UJFB?>B>BAB?GBA?BCE ULV T 45 Ammon City Council 03/16/2021Page 70 of 118 SER>HPQ>U VV JE S >???@A>BC>B DEFA> @?>BC>AB G? ? ? HEBI>CI >C@BF> @ J?F@>AB @>I KCA>??B> CC>FAFB> ? >AAF LA>AA>?BI >@@I>CBB>? >A MNOA>F?>CF >I> BF>I>IAI LPQA>F?>CF >I> BF>I>IAI RPQA@ > BA?I>I >IC R PQA@ > BA?I>I >IC A>?AIA>F@>FAC SQEF?>??A>BF@>?F@ SDQTRQ 46 Ammon City Council 03/16/2021Page 71 of 118 > NO>RKL>SM TT DO IJ ! >?@ ?>@ ABB>ACA D@ > B?@B>???CE> B? FG>???E> @AG> @A H B>EB@@>@@A>A@? ! IJ>?E>?AGA?@>B?ECC>BA >A?AG>E EA> IA>C ?CA>E@GCC>B HKL>B>@G>BCG>G KL ??> EA GE>GA>E@ !! LBGC>EABA >E@A>??C M KLMA>???>EA@>EA >?G?A>GE NLOC?>??C>E@B NPLQL 47 Ammon City Council 03/16/2021Page 72 of 118 118 of 73 Page 03/16/2021 Council City Ammon Other Information Ammon City Council 03/16/2021Page 74 of 118 TUV AABHH IAK LBABABHB AHDABCDK BCDEAABBACDA KLBBCHBQHRQDOHFH BKLBJBD MHMSK ABCDEAACJGH NHONKLBJBD MH MPK ABCDEAAJHCBH WWOHGJXKLBJB D MHMMK > >ABCDEAAFGHC HGBIGJKLBBD MHMMHBK ?@ 49 Ammon City Council 03/16/2021Page 75 of 118 118 of 76 Page 03/16/2021 Council City Ammon 118 of 77 Page 03/16/2021 Council City Ammon Annual Federal Compliance Section Ammon City Council 03/16/2021Page 78 of 118 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 Ammon Ammon, Idaho We have audited, in accordance with auditing standards generally accepted in the United States 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 unit, each major fund, and the aggregate remaining fund information of City of Ammon (the "City") as of and for the year ended September 30, 2020, and the related notes to the financial statements, which collectively comprise City of Ammon's basic financial statements, and have issued our report thereon dated March 18, 2021. Internal Control Over Financial Reporting In planning and performing our audit of the financial statements, we considered 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 opinion 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 City's internal control. A deficiency in internal control exists when the design or operation of a control does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination of deficiencies in internal 79&*$9;/ 487K *K#* *K"$" 64 $"#49&#,;" )9446,6;6*< *K#* # +#*"$6#; +644*#*"+"&* 9G *K" N6*<g4 G6&#&76#; 4*#*"+"&*4 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 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 and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify a certain deficiency in internal control, described in the accompanying schedule of findings and questioned costs as item 2020-001 that we consider to be a material weakness. 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 financial statements. 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. 52 Ammon City Council 03/16/2021Page 79 of 118 City's Response to Finding City of Ammon's response to the finding identified in our audit is described in the accompanying schedule of findings and responses. We did not audit City of Ammon's response and, accordingly, we express no opinion on the response. 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 City's internal control or on compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in considering the City's internal control and compliance. Accordingly, this communication is not suitable for any other purpose. Wipfli LLP March 18, 2021 Idaho Falls, Idaho 53 Ammon City Council 03/16/2021Page 80 of 118 Independent Auditor's Report on Compliance for Each Major Federal Program and on Internal Control Over Compliance Required by the Uniform Guidance Honorable Mayor and City Council City of Ammon Ammon, Idaho Report on Compliance for Each Major Federal We have audited City of Ammon's compliance with the types of compliance requirements described in the OMB Compliance Supplement that could have a direct and material effect on each of each of its major federal programs for the year ended September 30, 2020. City of Ammon's major federal programsare identified in the summary of auditor's results section of the accompanying schedule of findings and questioned costs. Management's Responsibility Management is responsible for compliance with federal and state statutes, regulations, and the terms and conditions of its federal programs. Auditor's Responsibility Our responsibility is to express an opinion on compliance for each of City of Ammon's major federal programs based on our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in accordance with auditing standards generally accepted in the United States; the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; the audit requirements of Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types of compliance requirements referred to above that could have a direct and material effect on a major federal program occurred. An audit includes examining, on a test basis, evidence about City of Ammon's compliance with those requirements and performing such other procedures as we considered necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program. However, our audit does not provide a legal determination on City of Ammon's compliance. Unmodified Opinionon Each Major Federal Program In our opinion, the Citycomplied, 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, 2020. 54 Ammon City Council 03/16/2021Page 81 of 118 Report on Internal Control Over Compliance Management of the City of Ammon is responsible for establishing and maintaining effective internal control over compliance with the types of compliance requirements referred to above. In planning and performing our audit of compliance, we considered City of Ammon's internal control over compliance with the types of requirements that could have a direct and material effect on each major federal program to determine the auditing procedures that are appropriate in the circumstances for the purpose of expressing an opinion on compliance for each major federal program and to test and report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the effectiveness of City of Ammon's internal control over compliance. A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow management or employees, in the normal course of performing their assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material weakness in internal control over compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of compliance requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet important enough to merit attention by those charged with governance. Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of this section and was not designed to identify all deficiencies in internal control over compliance that might be material weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may exist that have not been identified. We did identify certain deficiencies in internal control over compliance, described in the accompanying schedule of findings and questioned costs as item 2020-002 that we consider to be a material weakness. City of Ammon's response to the internal control over compliance finding identified in our audit is described in the accompanying schedule of findings and responses. City of Ammon's response was not subjected to the auditing procedures applied in the audit of compliance and, accordingly, we express no opinion on the response. The purpose of this report on 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. Wipfli LLP March 18, 2021 Idaho Falls, Idaho 55 Ammon City Council 03/16/2021Page 82 of 118 City of Ammon Schedule of Findings and Questioned Costs Year Ended September 30, 2020 Section I - Summary of Auditor's Results Financial Statements Type of auditor's report issued on whether the financial statements were prepared in accordance with GAAP: Unmodified Internal control over financial reporting: Material weakness(es) identified?X Yes No Significant deficiency(ies) identified? YesX None Reported Noncompliance material to financial statements noted? YesX No Federal Awards Internal control over major programs: Material weakness(es) identified?X Yes No Significant deficiency(ies) identified? YesX None Reported Type of auditor's report issued on compliance for major programs:Unmodified Any audit findings disclosed that are required to be reported in accordance with Title 2 US Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirement for Federal Awards (Uniform Guidance)X Yes No Identification of major programs CFDA Number(s)Federal Program or Cluster 21.019COVID-19 - Coronavirus Relief Fund Dollar threshold used to distinguish between Type A and Type B programs: $750,000 Auditee qualified as low-risk auditee? YesX No 56 Ammon City Council 03/16/2021Page 83 of 118 City of Ammon Schedule of Findings and Questioned Costs (Continued) 1.Audit Findings in Relation to Financial Statements 2020-001INTERNAL CONTROLS OVER REVENUE RECOGNITION Criteria or Specific Requirement: Under GAAP reporting requirements, an organization should match revenues and expenditures where applicable. For federal expenditures, this may require the recording of additional accounts receivable amounts for future reimbursement requests. Condition: The City did not appropriately report revenues and receivable balances in line with grant funds expended for the year. Some requests had been made near or after year end, or were made during the time of fieldwork, but these were not identified as cutoff AR balances. Context: The City has received significant additional funding in the current year as a result of COVID related funding sources in addition to their grants in process. Some of these dollars came without any application process, and the deadlines for expenditures were tight. The City focused its attention of appropriately spending and tracking these dollars, and requesting reimbursement after all appropriate support had been gathered. They did not, however, identify the need to record offsetting receivables for expected reimbursements. Effect: The City's revenues and accounts receivable balances were understated by more than $800,000. Cause: Focus was on the expenditure side without recognition of the GAAP requirement to match associated reimbursement expectations. Auditor's Recommendation:We recommend that the City create a process to oversee all federal grants to monitor use and tracking. Further that this process would allow a year-end reconciliation of receipts and expenditures to ensure proper recording of receivables and revenues for any items not already recorded. View of Responsible Officials: The City now has a spreadsheet to track grants and federal funds. The Controller is now aware of this requirement and intends to document earlier. 57 Ammon City Council 03/16/2021Page 84 of 118 City of Ammon Schedule of Findings and Questioned Costs (Continued) 2.Audit Findings and Questioned Costs in Relation to Federal Awards 2020-002AWARENESS OF FEDERAL SPENDING Federal Program Information: Funding agency:Department of Treasury Title:Coronavirus Relief Fund CFDA number:21.019 Award year and number:2020 Criteria or Specific Requirement: An organization should have procedures in place to recognize the amount of federal dollars being spent, and to prepare a Schedule of Federal Awards necessary to be compliant with Uniform Guidance requirements. Condition: The City did not realize they had spent enough federal dollars to necessitate a single audit under Uniform Guidance requirements. This was discovered during the audit process even after discussions about grant spending and a general discussion of how much the City might have spent in the course of the year. Context: The City has not historically received significant funding through grants and federal dollars. Due to COVID 19 as well as seeking additional grant funding for City projects, they spent over $800,000 in federal dollars in this fiscal year. Questioned Costs: None Effect: The City would not have completed the required single audit, and would not have appropriately recorded the reimbursement revenue associated with the majority of their grant expenditures. Cause: There was no mechanism in City procedures which tracked and maintained all grant information such that they could see how much has been spent across all City departments. Repeat:No Auditor's Recommendation:We recommend the City create a process for tracking all grants and grant expenditures to more easily identify when a single audit is necessary and be able to create an accurate Schedule of Federal Expenditures. View of Responsible Officials: The City now has a spreadsheet to track grants and federal funds. The Controller is now aware of this requirement and intends to document earlier. 58 Ammon City Council 03/16/2021Page 85 of 118 >?@A>B CBCBDDE @>A FG HI@>JKL MNAJOJK JPKJPQRJSTST >A FRJSTST @ UHAAFG HI@>JKL MNAJOJK JKPQKK @ UHAAFJKPQKK >?JOJKQJQSR V>AQJQSR >FG WX?NYX?FU NFZJTOTS JSPT >FJSPT @>A\\NFG HNF?F\]>M JQTKJRT JTOKJQ @>A\\NFRT V>A@JPPT EA?\[PRTK DFAEA?\[ 59 Ammon City Council 03/16/2021Page 86 of 118 City of Ammon Notes to Schedule of Expenditures of Federal and State Awards Year Ended September 30, 2020 Note 1: General _K" #779+)#&<6&2 47K"'8;" 9G "M)"&'6*8$"4 9G G"'"$#; #&' 4*#*" #F#$'4 \[*K" b(7K"'8;"c\] 6&7;8'"4 *K" G"'"$#; grant activity of City of Ammon under programs of the federal governments for the year ended September 30, 2020. The information in this schedule is presented in accordance with requirements of the Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards \[bW&6G9$+ C86'#&7"c". Because the schedule presents only a selected portion of the operations of City of Ammon, it is not intended to and does not present the financial position, changes in net assets or cash flows of City of Ammon. Note 2: Basis of Accounting 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. Pass-through entity identifying numbers are presented where available. Note 3: Indirect Cost Rate City of Ammon has elected not to use the 10-percent de minimis indirect cost rate allowed under the Uniform Guidance. Note 4: Sub-Recipients City of Ammon does not have any sub-recipients of federal awards. 60 Ammon City Council 03/16/2021Page 87 of 118 City of Ammon Summary Schedule of Prior Audit Findings Year Ended September 30, 2020 NONE 61 Ammon City Council 03/16/2021Page 88 of 118 Ammon City Council 03/16/2021Page 89 of 118 Ammon City Council 03/16/2021Page 90 of 118 Ammon City Council 03/16/2021Page 91 of 118 CITY OF AMMON BONNEVILLE COUNTY, IDAHO RESOLUTION 2021-005R (Surplus Property) A RESOLUTION RELATING TO SURPLUS PERSONAL PROPERTY; DECLARING CERTAIN PERSONAL PROPERTY SURPLUS; AUTHORIZING AND DIRECTING THE DISPOSAL OF SURPLUS PROPERTY; PROVIDING FOR RELATED MATTERS; AND PROVIDING FOR AN EFFECTIVEDATE. WHEREAS, the City Ordinances of the City of Ammonprovides for declaration of surplus personal property by resolution; and WHEREAS, the City Council has determined that thesurplus property listed in Section 4 is no longer needed by the City; and WHEREAS, the City Council has deemed it unnecessaryto maintain ownership of said surplus personal property; and WHEREAS, Section 1-13-13 of the City Code providesfor a method of disposal of surplus property; and NOW THEREFORE, be it hereby resolved by the Mayorand City Council of the City of Ammon, Bonneville County, Idaho as follows: Section 1.That the City Council does hereby findthat the surplus property listed in section 4 of this resolution is no longer needed for the day to dayoperations of the City. Section 2.MmY‡ Y bz zk ‡mn Kf zvˆ‡nzx mYvv afz ‡fd nx ‡mf *vf„u¯ Akknbf Yxd ˆatfb‡ ‡z examination by any interested party. Section 3.Pursuant to the provisions of Section 1-13-13of the Codified Ordinances of the City of Ammon, State of Idaho, the surplus property listedin Section 4 of this resolution shall be disposedof as provided for in section 1-13-13 of the Ammon CityCode. Section 4.The following items are hereby declaredsurplus property and shall be disposed of as directed by Section 3 of this resolution: City Property/AssetsVINEstimated Surplus Value EATON 9E-30 3-Phase, 480v UPSN/A$500.00 Total of Surplus Property$500.00 ____________________________________ Sean Coletti, Mayor ___________________________________ Kristina Buchan, City Clerk Resolution 2021-005RSurplus PropertyPage1of1 Ammon City Council 03/16/2021Page 92 of 118 Ammon City Council 03/16/2021Page 93 of 118 Ammon City Council 03/16/2021Page 94 of 118 Ammon City Council 03/16/2021Page 95 of 118 Ammon City Council 03/16/2021Page 96 of 118 Ammon City Council 03/16/2021Page 97 of 118 Ammon City Council 03/16/2021Page 98 of 118 Ammon City Council 03/16/2021Page 99 of 118 Ammon City Council 03/16/2021Page 100 of 118 Ammon City Council 03/16/2021Page 101 of 118 118 of 102 Page 03/16/2021 Council City Ammon 118 of 103 Page 03/16/2021 Council City Ammon 118 of 104 Page 03/16/2021 Council City Ammon 118 of 105 Page 03/16/2021 Council City Ammon 118 of 106 Page 03/16/2021 Council City Ammon 118 of 107 Page 03/16/2021 Council City Ammon 118 of 108 Page 03/16/2021 Council City Ammon 118 of 109 Page 03/16/2021 Council City Ammon 118 of 110 Page 03/16/2021 Council City Ammon 118 of 111 Page 03/16/2021 Council City Ammon 10-4-1: Ordinance and Map May Be Amended 10-4-2: Petition to Planning Commission 10-4-3: Amendments to be in Harmony with Land Use Plan 10-4-4: Public Hearing Notice 10-4-5: Reconsideration Ammon City Council 03/16/2021Page 112 of 118 Ammon City Council 03/16/2021Page 113 of 118 Ammon City Council 03/16/2021Page 114 of 118 Ammon City Council 03/16/2021Page 115 of 118 Ammon City Council 03/16/2021Page 116 of 118 118 of 117 Page 03/16/2021 Council City Ammon Ammon City Council March 18, 2021 Mayor Coletti and City Councilmembers: Proposed Changes to the City of AmmonPersonnel Policy Manual Staff Presenting: Micah Austin, City Administrator Recommendation -Discuss the proposed changes to the Personnel Policy Manual Summary of Analysis 1.The current Personnel Policy Manual was adopted on December 20, 2018 by Resolution 2018-020R. Prior to that update, the policy was amended four times since 2012. 2.The proposed updates to the Personnel Policy Manual will be presented at the March 18, 2021 meeting by the City Administrator. 3.Highlighted Updates from the proposed Personnel Policy Manual: a.Updates. i.Incorporated the Drug and Alcohol Free Policy into the main portion of the Personnel Policy Manual rather than as an appendix. Various minor updates were made to this policy, including updates to the drug and alcohol testing policy. ii.Incorporated the Technology Use Policy into the main portion of the Personnel Policy Manual rather than as an appendix. Various minor updates were made to this policy. iii.Incorporated the Vehicle, Equipment Use, and Driving Safety Policy into the main portion of the Personnel Policy Manual rather than as an appendix. Various minor updates were made to this policy. iv.Clarified Bereavement Leave is limited to 40 hours. v.Various formatting updates throughout the policy. n­SY„nzˆ ‡n‡vf¸df nlxY‡nzx bmYxlf ª ˆbm Y bmYxlnxl °*n‡ M„fY ˆ„f„± ‡z °5K ,n„fb‡z„­± vii.New title page. b.New Policies i.Added a new Social Media Policy as Section 3-6. ii.Revised and clarified the travel/training reimbursement and expense policy. Financial Impact -No financial impacts are anticipated from these proposed changes. Motion °6 wzf ‡z Y„zf Kf zvˆ‡nzx àÞàß¼ÞÞäK Attachments: 1.The proposed Personnel Policy Manual will be presented at the meeting. 2135 South Ammon Rd., Ammon, Idaho 83406City Hall: (208) 612-4000 www.cityofammon.usPage|1 Ammon City Council 03/16/2021Page 118 of 118