FY2017 Audit Report City
City of Blair, Nebraska
FINANCIAL STATEMENTS
INDEPENDENT ACCOUNTANT’S REPORT
For the year ended September 30, 2017
- 1 -
TABLE OF CONTENTS
Page
INDEPENDENT ACCOUNTANT’S REPORT 3 - 5
MANAGEMENT’S DISCUSSION AND ANALYSIS 6 - 17
BASIC FINANCIAL STATEMENTS
Statement of net position - Government-wide 18 – 19
Statement of activities - Government-wide 20
Balance sheet - Governmental funds 21
Reconciliation of the balance sheet of governmental funds
to the statement of net position 22
Statement of revenues, expenditures, and changes in
fund balances - Governmental funds 23
Reconciliation of the statement of revenues, expenditures
and changes in fund balances of governmental funds
to the statement of activities 24
Statement of net position - Proprietary funds 25
Statement of revenues, expenses, and changes in
net position - Proprietary funds 26
Statement of cash flows - Proprietary funds 27 - 28
Statement of net position - Fiduciary funds 29
Statement of changes in fiduciary net position – Fiduciary funds 30
NOTES TO FINANCIAL STATEMENTS 31 - 53
REQUIRED SUPPLEMENTAL INFORMATION
Budgetary comparison schedule - General fund 55 - 56
Budgetary comparison schedule - General fund revenues 57
- 2 -
TABLE OF CONTENTS – CONTINUED
Page
REQUIRED SUPPLEMENTAL INFORMATION - CONTINUED
Budgetary comparison schedule - Street fund 58 - 59
Budgetary comparison schedule - Keno fund 60
SUPPLEMENTAL INFORMATION
Individual fund balance sheet – Economic development fund, a fund
within the General fund 62
Individual fund statement of revenues, expenditures, and changes in
Fund balance – Economic development fund, a fund within the General fund 63
Combining balance sheet – General fund 64
Combining statement of revenues, expenditures, and changes in 65
Fund balance – general fund
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 66 - 67
SCHEDULE OF FINDINGS AND RESPONSES 68
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 69
INDEPENDENT AUDITOR’S REPORT
To the City Council
City of Blair, Nebraska
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the
business-type activities, and each major fund of the City of Blair, Nebraska, as of and for the
year ended September 30, 2017, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal controls relevant to the
preparation and fair presentation of financial statements that are free from material misstatement,
whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We
conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free 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.
www.hayes-cpa.comWestroads Pointe | 1015 N. 98th St., Suite 200 | Omaha, NE 68114 | T 402-390-2480
134 W. Broadway | Council Bluffs, IA 51503 | T 712-322-5503
- 4 -
An audit also includes evaluating the appropriateness of accounting policies used and the
reasonableness of significant accounting estimates made by management, as well as, evaluating
the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a
basis for our audit opinions.
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, and
each major fund of the City of Blair, Nebraska, as of September 30, 2017, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the
management’s discussion and analysis and budgetary comparison information on pages 6 - 17
and 55 - 60 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 of America, which consisted of
inquiries of management about the methods of preparing the information and comparing the
information for consistency with management’s responses to our inquiries, the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Blair’s basic financial statements. The individual non-major
fund financial statements and the combining fund financial statements are presented for purposes
of additional analysis and are not a required part of the basic financial statements.
The individual non-major fund financial statements and the combining fund financial statements
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements.
- 5 -
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 of
America. In our opinion, the individual non-major fund financial statements and the combining
fund financial statements are fairly stated in all material respects in relation to the basic financial
statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated March
9, 2018, on our consideration of the City of Blair, Nebraska’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 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 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 of Blair, Nebraska’s internal control over financial
reporting and compliance.
Hayes & Associates, L.L.C.
Omaha, Nebraska
March 9, 2018
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 6 -
The discussion and analysis of the City of Blair’s financial performance provides an overview
and analysis of the City’s financial activities for the fiscal year ended September 30, 2017. It
should be read in conjunction with the accompanying basic financial statements.
FINANCIAL HIGHLIGHTS
The assets of the City of Blair exceeded its liabilities at the close of the fiscal year
ending September 30, 2017 by $49.0 million (net position). Of this amount, $7.7
million (unrestricted net position) may be used to meet the government’s ongoing
obligations to citizens and creditors.
The City of Blair’s total net position increased by $637 thousand for the year ended
September 30, 2017. This was the result of several projects being completed with
grants and sales tax revenue.
As of September 30, 2017, the City of Blair’s governmental funds reported combined
ending fund balances of $4.0 million, an increase of $3.6 million in comparison with
the prior fiscal year.
The fund balances for the General Fund decreased $1,224,192 for the fiscal year ended
September 30, 2017. The Debt Service Fund increased $670,036 primarily due to
collection of delinquent assessments and transfers of sales tax and the Street Fund
increased $703,434 during the same period primarily due to new projects funded by
sales tax and grants.
The City’s total debt decreased by $4.1 million during the current fiscal year. The City
issued new debt of $6.4 million during the current year and continued to make debt
payments this year totaling $10.5 million. The decrease was primarily due to the
normal payment of scheduled bond payments.
OVERVIEW OF FINANCIAL STATEMENTS
The discussion and analysis serves as an introduction to the City of Blair’s basic financial
statements. The City of Blair’s basic financial statements are comprised of three components,
government-wide financial statements, fund financial statements, and notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 7 -
Government-wide financial statements. The government-wide financial statements are
designed to provide readers with a broad overview of the City of Blair’s finances in a manner
similar to a private-sector business. The statement of net position presents information on all of
the City of Blair’s assets, deferred outflows, liabilities, and deferred inflows with the difference
between them reported as net position. Over time, increases or decrease in net position may
serve as a useful indicator of whether the financial position of the City of Blair is improving or
deteriorating. The statement of net position combines and consolidates governmental funds’
current financial resources (short-term spendable resources) with capital assets and long-term
obligations. Other nonfinancial factors should also be taken into consideration, such as changes
in the City’s property tax base and the condition of the City’s infrastructure (i.e. roads, drainage
improvements, storm and sewer lines, etc.), to assess the overall health or financial condition of
the City. The statement of activities presents information showing how expenses are taken into
account regardless of when cash is received or paid. Thus, revenues and expenses are reported
in this statement for some items that will only result in cash flows in future fiscal periods (e.g.,
uncollected taxes). Both the statement of net position and the statement of activities are prepared
utilizing the accrual basis of accounting as opposed to the modified accrual basis.
In the statement of net position and the statement of activities, the City is divided into two kinds
of activities, with the third activity (fiduciary) not included in the government-wide totals:
Governmental Activities - Most of the City’s basic services are reported here, including
the police, streets, fire, library, planning and development, parks and recreation, and
general administration. Property taxes, sales taxes, and state allocations finance most of
these activities.
Business type Activities - The City charges a fee to customers to help it cover all or
most of the cost of certain services it provides. The City’s water and sewer system are
reported here.
Fiduciary Activities - The City accounts for Agency Funds for TIF District #1 Project
which are held in restriction to pay the costs of the District. TIF District #1 bonds are
held by the developer and do not carry the full faith and credit of the City.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 8 -
Reporting the City’s Most Significant Funds
Fund Financial Statements
A fund is a grouping of related accounts that is used to maintain control over resources that have
been segregated for specific activities or objectives. Some funds are required to be established
by state laws and by bond covenants. However, the City also establishes many other funds to
help it control and manage money for particular purposes or to show that it is meeting legal
responsibilities for using certain taxes, grant and other money. The City’s three kinds of fund
financial statements – governmental, proprietary and fiduciary - utilize different accounting
approaches.
Governmental funds - The majority of the City’s basic services are reported in
governmental funds, which focus on how money flows into and out of those funds and
the balances left at year-end that are available for spending. These funds are reported
using an accounting method identified as the modified accrual basis of accounting,
which measures cash and all other financial assets that can readily be converted into
cash. The governmental fund statements provide a detailed short-term view of the City’s
general governmental operations and the basic services it provides. Governmental fund
information helps determine whether there are more or fewer financial resources that can
be spent in the near future to finance the City’s programs. By comparing information
presented for governmental funds with similar information presented for governmental
activities in the government-wide statements, readers may better understand the long-
term effect of the government’s near-term financing decisions. The relationships of
differences between governmental activities (reported in the statement of net position
and the statement of activities) and governmental funds are detailed in a reconciliation
following the fund financial statements.
The City of Blair maintains five individual governmental funds. Information is presented
separately in the governmental funds balance sheet and in the governmental funds
statement of revenues, expenditures, and changes in fund balances for the general fund,
debt service fund, street fund, keno fund and capital projects fund, all of which are
reported as major funds.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 9 -
Fund Financial Statements - Continued
Proprietary funds - The City charges customers for the services it provides, whether to
outside customers or to other units within the City. These services are generally reported
in proprietary funds. Proprietary funds are reported in the same way that all activities are
reported in the statement of net position and the statement of activities. In fact, the City’s
enterprise funds (a component of proprietary funds) are identical to the business-type
activities that are reported in the government-wide statements but provide more detail
and additional information, such as cash flows, for proprietary funds.
The City of Blair maintains two individual enterprise funds. The City uses enterprise
funds to account for its water and sewer. The funds provide the same type of information
as the government-wide financial statements, only in more detail and include some of
the internal service fund type activity. The proprietary fund financial statements provide
separate information for the water and sewer funds, both of which are considered to be
major funds in the City.
Fiduciary fund - The City accounts for Agency Funds for TIF District #1 Project which
are restricted to pay the costs of the District. TIF District #1 bonds are held by the
developer and do not carry the full faith and credit of the City.
Notes to Financial Statements
The notes provide additional information that is essential to a full understanding of the data
provided in the government-wide and fund financial statements. The notes to the financial
statements can be found immediately following the basic financial statements.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 10 -
THE CITY AS A WHOLE - Government-Wide Financial Analysis
The City’s combined net position was $49.0 million as of September 30, 2017. Analyzing the
net position and net expenses of governmental and business-type activities separately, the
governmental activities net position was $23.4 million, and the business type activities net
position were $25.6 million. This analysis focuses on the net position (table 1) and changes in
general revenues (table 2) and significant expenses of the City’s governmental and business-
type activities. The comparative government-wide results are provided in the tables for
additional analysis.
By far the largest portion of the City’s net position (84%) reflects its restricted and capital assets
(e.g., donations, community betterment, debt service, and capital projects).
TABLE 1 (amounts are expressed in thousands)
2017 2016 2017 2016 2017 2016
ASSETS
Current and other assets 5,794$ 9,111 $ 7,563$ 8,144$ 13,357 $ 17,255 $
Capital assets 23,109 22,304 47,788 48,260 70,897 70,564
Total assets 28,903 31,415 55,351 56,404 84,254 87,819
LIABILITIES
Long-term debt 4,735 7,545 26,882 28,565 31,617 36,110
Other liabilities 709 866 2,868 2,420 3,577 3,286
Total liabilities 5,444 8,411 29,750 30,985 35,194 39,396
DEFERRED INFLOWS 46 46 - - 46 46
NET POSITION
Net investment in
capital assets 18,374 14,759 18,963 18,124 37,337 32,883
Restricted 2,243 1,547 2,376 2,176 4,619 3,723
Unrestricted (deficit)2,796 6,652 4,262 5,119 7,058 11,771
Total net position 23,413$ 22,958 $ 25,601$ 25,419$ 49,014 $ 48,377 $
Governmental Activities Business-type Activities Total Primary Government
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 11 -
Governmental activities: Governmental activities increased the City’s net position by $282
million before transfers.
Key elements of this increase are as follows:
The revenue in governmental funding activities increased as did e x p e n s e s , a n d t h e
General fund activities still generated a positive gain before transfers. The General Fund
was the most effective at covering their costs due to sales tax, fees charged, operating
grants, capital grants, and contributions, which was generally a positive increase. The
governmental funds did have an operating deficit before considering the transfers to the
Governmental activities.
The comparative financial analysis is provided for additional information. The City’s
governmental revenues increased when compared to the prior year by 0.92% or $86
thousand. There were several reasons for this change including increases in charges for
services and general taxes from the prior year. The assessed value of the property of the
City increased by $21.2 million or 4.2% as compared to the prior year while the City
property tax rate of $0.358163 per $100 assessment was a slight increase.
Business-type Activities
Revenues of the City’s business-type activities were $8.8 million for the fiscal year
ending September 30, 2017. Expenses for the City’s business-type activities were $7.9
million for the year, resulting in a net asset increase of $919 thousand before transfers.
The net increase was the result of slightly increased water revenue from water users in
general and the stabilization of operating costs through bidding of supplies in larger
quantities.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 12 -
TABLE 2 (amounts are expressed in thousands)
2017 2016 2017 2016 2017 2016
REVENUES
Program revenues
Charges for services 868$ 610 $ 8,771 $ 8,678$ 9,639$ 9,288 $
Operating grants and
contributions 209 52 -10 209 62
Capital grants and
contributions 1,363 1,974 - - 1,363 1,974
General revenues
Taxes 5,939 5,720 - - 5,939 5,720
Intergovernmental - - - - - -
Interest income 8 8 28 12 36 20
Special assessment 598 99 - - - 99
Gains 246 647 -906 - 1,553
Other 209 244 68 31 277 275
Total revenues 9,440 9,354 8,867 9,637 18,307 18,991
EXPENSES
Administration 912 946 - - 912 946
Police 1,970 1,842 - - 1,970 1,842
Fire 256 228 - - 256 228
Parks 654 618 - - 654 618
Library 638 782 - - 638 782
Swimming pool 117 67 - - 117 67
Zoning 265 290 - - 265 290
Animal control 113 124 - - 113 124
Donated fund 38 31 - - 38 31
Mitigation 12 10 - - 12 10
Streets 4,364 2,183 - - 4,364 2,183
Keno 22 24 - - 22 24
Community betterment - 14 - - - 14
Rescue squad 191 160 - - 191 160
Bond issuance costs 36 2 - - 36 2
Interest expense 134 155 - - 134 155
Water - - 6,651 6,124 6,651 6,124
Sewer - - 1,297 1,256 1,297 1,256
Total expenses 9,722 7,476 7,948 7,380 17,670 14,856
CHANGE IN NET POSITION
BEFORE TRANSFERS (282)1,878 919 2,257 637 4,135
TRANSFERS 737 (6,398) (737) 6,398 - -
CHANGE IN NET POSITION 455 (4,520) 182 8,655 637 4,135
NET POSITION, BEGINNING 22,958 27,478 25,419 16,764 48,377 44,242
NET POSITION, END OF YEAR 23,413$ 22,958 $ 25,601 $ 25,419$ 49,014$ 48,377$
Governmental Activities Business-type Activities Total Primary Government
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 13 -
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year 2017, the City had $110.6 million invested in a broad range of
capital assets, including police and fire equipment, buildings, park facilities, and water and
sewer plants. (see table 3) This amount represents a net increase (including increases and
decreases) of $3.3 million or 3.1% over the prior fiscal year. Beginning October 1, 2003, the
City began capitalizing general infrastructure assets and depreciating them over their useful
lives as required by GASB 34. The general infrastructure assets capitalized in 2017 was $1.0
million.
TABLE 3 (amounts are expressed in thousands)
Beginning Decreases / Ending
Balance Increases Recharacterization Balance
GOVERNMENTAL ACTIVITIES
Land 1,285$ 30$ (88)$ 1,227$
Construction in progress 225 951 (1,075) 101
Infrastructure 17,291 1,049 - 18,340
Buildings 8,893 -(237) 8,656
Equipment 5,898 1,323 (127) 7,094
Total governmental 33,592 3,353 (1,527) 35,418
BUSINESS-TYPE ACTIVITIES
Water assets 62,973 1,536 (81) 64,428
Sewer assets 10,776 50 - 10,826
Total business-type 73,749 1,586 (81) 75,254
Totals 107,341$ 4,939$ (1,608)$ 110,672$
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 14 -
Debt
At year-end, the City had $4.7 million in General Obligation Bonds outstanding as compared to
$3.9 million at the end of the prior fiscal year, resulting in an increase of $810 thousand shown
in Table 4. The Water Revenue Bonds outstanding decreased by $1.2 million. The City has a 25
year take or pay contract with Cargill to secure all debt incurred for expanding the City’s water
system for the ability to meet Cargill’s water needs. The expanded plant has a capacity of 20
MGD, with 15.5 MGD being committed to Cargill under the amended 25 year take or pay
contract.
TABLE 4 (amounts are expressed in thousands)
Balance Balance
September 30,September 30,
1900 Additions Reductions 1900
General Obligation Bonds 3,925$ 3,015$ (2,205)$ 4,735$
Revenue anticipation notes 3,620 -(3,620) -
Water Revenue Bonds 27,503 3,460 (4,652) 26,311
Sewer Revenue Bonds 2,633 -(119) 2,514
Totals 37,681$ 6,475$ (10,596)$ 33,560$
Description
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 15 -
THE CITY’S FUND
At the close of the City’s fiscal year on September 30, 2017, the governmental funds of the City
reported a combined fund balance of $3.9 million.
General Fund Budgetary Highlights
General Fund had revenues over expenditures of $56,329 with a net decrease of $1,224,192,
after transfers in and out, sales of assets, and insurance proceeds. This was primarily
accomplished from the fact expenses were slightly below budgeted projections and
intergovernmental revenues were up.
Debt Service had expenditures of $1,791,966 more than revenues. When combined with the sale
of assets from previously foreclosed properties, income from the issuance of bonds and transfers
in and out, the Debt ending balance increased by $550,036.
Street Fund had an operating loss of $2,389,442. This loss was offset with net transfers in of
$3,087,562 from Sales Tax, Debt Service and the Nebraska Department of Transportation
(NDOT) reimbursement for the State’s share of the Highway 75 resurfacing project and
insurance proceeds of $5,314 which resulted in a net increase of $703,434.
Keno and Capital Projects Fund had no major deviations in revenues or expenditures.
Water revenues continue to be stable. The City refinanced the $3.2 million bond anticipation
notes that had been issued for the 2012/2013 plant expansion. All water bonds are now long-
term bonds with the bonds issued to pay for the water plant expansions benefiting the industrial
campus covered by the take or pay contract with Cargill. Water finished the year with a ratio of
operating income before depreciation, divided by Debt Service greater than 1.30 as required by
the covenants in the authorizing Ordinances. However, Sewer was $31,810 short of the
requirement as of September 30, 2017. The Sewer short fall was largely due to a non-budgeted,
unplanned trunk sewer main repair along Highway 30 South that had to be made at an estimated
cost of over $140,000 plus staff time. The main had separated due to poor construction
practices during the installation of a storm sewer pipe as part of the Highway 30 widening
project several years ago. The NDOT entered into an agreement late in the fiscal year to
reimburse the City for the cost. The City received full reimbursement from the NDOT in early
February 2018 in the amount of $162,934. When adding the $162,934 as a reimbursement, the
Sewer fund would have exceeded the debt coverage by just over $131,000.
All other funds operated without any significant changes to the funds.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 16 -
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Current economic conditions are positive with the announcement of one new company, the
expansion of a second company on the Cargill Bio Campus and a third company announcing
plans to build a $60 million plant in Blair that would employ up to 40 individuals. These
positive announcements help reenergize the local economy that had been slowed previously by a
slight down turn in the agricultural industry from high costs and low commodity prices. We
continue to see a stabilizing regional economy and anticipate continued growth in the Blair
community that will allow for a stable budget environment. The City valuation for taxable year
2017 was $522,612,640 up 4.2% from the previous fiscal year. For Fiscal year 2018 the City’s
valuation increased to $528,436,443. The City’s property tax levy continues to be stable. For
the fiscal years 2015 and 2016 the City’s property tax levy was 35.7902 cents per hundred of
actual valuation and the levy for the fiscal year 2017 was 35.8163 cents per 100 dollars of
valuation. For the fiscal year 2018 the levy remained at 35.8163.
The City continues to see a steady interest in development of commercial and residential
properties. The City has worked with a task force of local citizens over the past 9 months to
identify areas and ways to increase residential development in and around Blair. With the
transfer of Dana College to the Angels Share, Inc. none profit, the City anticipates working with
the new owner to stimulate residential workforce housing in the C i t y a s p a r t o f t h e f u t u r e
campus use and development.
The City continues to work with several developers on the possibility of creating new and
affordable housing lots. The cost of new development lots is one of the primary obstacles facing
the City of Blair in the development of new housing.
The October 2017 closing and decommissioning of the OPPD Nuclear Plant located
approximately two miles south of Blair has had minimal economic effect on the City to this
point and it is anticipated to continue to have limited future impact on the Blair economic
conditions with the continued decommissioning, which will extend over a fifteen to twenty-five-
y e a r p e r i o d . T h e C i t y a n t i c i p a t e s t h e l o s s o f j o b s a t t h e p l a nt will be absorbed through
expansion of current businesses/industries and new companies looking to locate in the Blair
area.
Local tax receipts appear to be stable with sales taxes receipts continuing to meet or exceed
budgeted projections.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2017
- 17 -
The water and wastewater funds continue to be stable. The Papio NRD has added the Lakeland
water company up to the NRD’s water system which added another 300 connections to the
system. They are also looking at adding part of Fort Calhoun’s water used to the NRD’s rural
system that is supplied by Blair.
The one issue facing the City’s water system is the renewal of the City’s NPDES permit. The
permit for discharging back to the Missouri River is under review by the Nebraska Department
of Environmental Quality (DEQ) and current drafts would call for capital expansions to alter
how the spent lime is being discharged back to the river. Although this will include some capital
expansion, the final cost is anticipated to be greatly reduced from previous estimates due to the
City working with the DEQ on alternative best management practices. Current estimates call
for spending only a couple million in comparison to the original estimate of ten to fifteen
million in capital cost.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the City’s finances and to show the City’s accountability
for the money it receives. If you have questions about this report or need additional financial
information, contact the City of Blair, 218 S. 16th Street, Blair, NE 68008.
Governmental Business-type
Activities Activities Total
ASSETS
Current Assets
Cash and cash equivalents 1,811,669$ 3,695,162$ 5,506,831$
Accounts receivable 7,313 1,472,626 1,479,939
Accrued interest receivable - 5,720 5,720
Intergovernmental receivable 168,218 - 168,218
Sales tax receivable 373,989 - 373,989
Property tax receivable 171,822 - 171,822
Prepaid expense 18,367 13,915 32,282
Special assessments receivable 1,001,437 - 1,001,437
Total Current Assets 3,552,815 5,187,423 8,740,238
Noncurrent Assets
Restricted cash and cash equivalents 2,240,970 2,375,694 4,616,664
Capital assets
Non-depreciable
Land 1,227,084 423,783 1,650,867
Construction in progress 100,972 1,319,111 1,420,083
Depreciable
Infrastructure 18,339,522 24,784,987 43,124,509
Buildings 8,656,189 45,607,937 54,264,126
Equipment 7,093,856 3,117,981 10,211,837
Accumulated depreciation (12,308,732) (27,465,975) (39,774,707)
Net Capital Assets 23,108,891 47,787,824 70,896,715
Total Noncurrent Assets 25,349,861 50,163,518 75,513,379
Total Assets 28,902,676$ 55,350,941$ 84,253,617$
LIABILITIES
Current Liabilities
Accounts payable 378,440$ 371,344$ 749,784$
Accrued expenses 261,298 216,004 477,302
Accrued interest 19,589 335,738 355,327
Deposits payable 49,534 1,700 51,234
Bonds payable - due within one year 495,000 1,943,095 2,438,095
Total Current Liabilities 1,203,861 2,867,881 4,071,742
Noncurrent Liabilities
Bonds payable - due in more than one year 4,240,000 26,881,878 31,121,878
Total Noncurrent Liabilities 4,240,000 26,881,878 31,121,878
Total Liabilities 5,443,861 29,749,759 35,193,620
City of Blair, Nebraska
STATEMENT OF NET POSITION
September 30, 2017
GOVERNMENT - WIDE
See accompanying notes and independent auditor's report
- 18 -
Governmental Business-type
Activities Activities Total
DEFERRED INFLOWS
Nonrefundable deposits 46,000$ -$ 46,000$
NET POSITION
Net investment in capital assets 18,373,891 18,962,851 37,336,742
Restricted:
Debt service 1,357,532 2,375,694 3,733,226
Donated projects 59,459 - 59,459
Economic development 491,043 - 491,043
Rescue squad 172,682 - 172,682
Reuse funds 6 - 6
Community betterment 162,000 - 162,000
Unrestricted 2,796,202 4,262,637 7,058,839
Total net position 23,412,815 25,601,182 49,013,997
Total liabilities, deferred inflows, and net position 28,902,676$ 55,350,941$ 84,253,617$
- 19 -
See accompanying notes and independent auditor's report
City of Blair, Nebraska
STATEMENT OF NET POSITION
GOVERNMENT - WIDE
September 30, 2017
Op
e
r
a
t
i
n
g
Ca
p
i
t
a
l
Ch
a
r
g
e
s
f
o
r
Gr
a
n
t
s
a
n
d
Gr
a
n
t
s
a
n
d
G
o
v
e
r
n
m
e
n
t
a
l
B
u
s
i
n
e
s
s
-
t
y
p
e
Ex
p
e
n
s
e
s
Se
r
v
i
c
e
s
Co
n
t
r
i
b
u
t
i
o
n
s
Co
n
t
r
i
b
u
t
i
o
n
s
Ac
t
i
v
i
t
i
e
s
Ac
t
i
v
i
t
i
e
s
Tota l
FU
N
C
T
I
O
N
S
/
P
R
O
G
R
A
M
S
Go
v
e
r
n
m
e
n
t
a
l
a
c
t
i
v
i
t
i
e
s
Ad
m
i
n
i
s
t
r
a
t
i
o
n
91
1
,
7
8
8
$
31
9
,
1
7
4
$
-
$
-
$
(5
9
2
,
6
1
4
)
$
-
$
(592,614)$
Po
l
i
c
e
1,
9
7
0
,
2
5
9
17
,
9
4
7
20
,
0
4
5
-
(1
,
9
3
2
,
2
6
7
)
-
(1,932,267)
Fi
r
e
25
6
,
4
8
1
-
-
-
(2
5
6
,
4
8
1
)
-
(256,481)
Pa
r
k
s
65
3
,
6
4
1
53
,
6
5
7
-
-
(5
9
9
,
9
8
4
)
-
(599,984)
Li
b
r
a
r
y
63
8
,
3
8
0
23
4
,
0
1
1
18
9
,
0
4
8
-
(2
1
5
,
3
2
1
)
-
(215,321)
Sw
i
m
m
i
n
g
p
o
o
l
11
7
,
0
0
7
-
-
-
(1
1
7
,
0
0
7
)
-
(117,007)
Zo
n
i
n
g
26
4
,
9
1
7
-
-
-
(2
6
4
,
9
1
7
)
-
(264,917)
An
i
m
a
l
c
o
n
t
r
o
l
11
3
,
4
4
0
-
-
-
(1
1
3
,
4
4
0
)
-
(113,440)
Mi
t
i
g
a
t
i
o
n
12
,
3
9
5
-
-
-
(1
2
,
3
9
5
)
-
(12,395)
Do
n
a
t
e
d
f
u
n
d
s
38
,
0
9
6
-
-
-
(3
8
,
0
9
6
)
-
(38,096)
Re
s
c
u
e
s
q
u
a
d
19
0
,
8
0
0
14
6
,
6
8
2
-
-
(4
4
,
1
1
8
)
-
(44,118)
Co
m
m
u
n
i
t
y
b
e
t
t
e
r
m
e
n
t
-
-
-
-
-
-
-
St
r
e
e
t
s
4,
3
6
4
,
1
6
2
-
-
1,3
6
3
,
1
9
5
(3
,
0
0
0
,
9
6
7
)
-
(3,000,967)
Ke
n
o
21
,
6
2
6
96
,
2
1
5
-
-
74
,
5
8
9
-
74,589
Bo
n
d
i
s
s
u
a
n
c
e
c
o
s
t
s
36
,
1
8
8
-
-
-
(3
6
,
1
8
8
)
-
(36,188)
In
t
e
r
e
s
t
o
n
l
o
n
g
-
t
e
r
m
d
e
b
t
13
3
,
6
0
4
-
-
-
(1
3
3
,
6
0
4
)
-
(133,604)
To
t
a
l
g
o
v
e
r
n
m
e
n
t
a
l
a
c
t
i
v
i
t
i
e
s
9,
7
2
2
,
7
8
4
86
7
,
6
8
6
20
9
,
0
9
3
1,3
6
3
,
1
9
5
(7
,
2
8
2
,
8
1
0
)
-
(7,282,810)
Bu
s
i
n
e
s
s
-
t
y
p
e
a
c
t
i
v
i
t
i
e
s
Wa
t
e
r
6,
6
5
1
,
1
7
1
7
,
6
1
1
,
1
3
0
-
-
-
95
9
,
9
5
9
959,959
Se
w
e
r
1,
2
9
6
,
4
1
3
1
,
1
5
9
,
8
4
2
-
-
-
(1
3
6
,
5
7
1
)
(136,571)
To
t
a
l
b
u
s
i
n
e
s
s
-
t
y
p
e
a
c
t
i
v
i
t
i
e
s
7
,
9
4
7
,
5
8
4
8
,
7
7
0
,
9
7
2
-
-
-
82
3
,
3
8
8
823,388
To
t
a
l
p
r
i
m
a
r
y
g
o
v
e
r
n
m
e
n
t
17
,
6
7
0
,
3
6
8
$
9,
6
3
8
,
6
5
8
$
20
9
,
0
9
3
$
1,3
6
3
,
1
9
5
$
(7
,
2
8
2
,
8
1
0
)
82
3
,
3
8
8
(6,459,422)
Ge
n
e
r
a
l
r
e
v
e
n
u
e
s
Ta
x
e
s
P
r
o
p
e
r
t
y
t
a
x
e
s
2,3
9
9
,
6
5
9
-
2,399,659
S
a
l
e
s
t
a
x
2,4
7
7
,
6
8
0
-
2,477,680
O
c
c
u
p
a
t
i
o
n
a
n
d
f
r
a
n
c
h
i
s
e
t
a
x
e
s
23
8
,
0
5
6
-
238,056
E
x
c
i
s
e
t
a
x
e
s
82
3
,
8
5
7
-
823,857
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
59
7
,
9
2
5
-
597,925
Un
r
e
s
t
r
i
c
t
e
d
i
n
v
e
s
t
m
e
n
t
e
a
r
n
i
n
g
s
7,6
2
9
28
,
5
5
4
36,183
Ot
h
e
r
i
n
c
o
m
e
20
9
,
0
6
4
67
,
5
4
6
276,610
Ga
i
n
o
n
s
a
l
e
o
f
a
s
s
e
t
24
1
,
0
0
5
-
241,005
Ga
i
n
o
n
i
n
s
u
r
a
n
c
e
r
e
c
o
v
e
r
y
5,3
1
4
-
5,314
Tr
a
n
s
f
e
r
s
73
6
,
9
6
5
(7
3
6
,
9
6
5
)
-
T
o
t
a
l
g
e
n
e
r
a
l
r
e
v
e
n
u
e
s
a
n
d
t
r
a
n
s
f
e
r
s
7,7
3
7
,
1
5
4
(6
4
0
,
8
6
5
)
7,096,289
C
h
a
n
g
e
s
i
n
n
e
t
p
o
s
i
t
i
o
n
45
4
,
3
4
4
18
2
,
5
2
3
636,867
Ne
t
p
o
s
i
t
i
o
n
,
b
e
g
i
n
n
i
n
g
o
f
y
e
a
r
22
,
9
5
8
,
4
7
1
25
,
4
1
8
,
6
5
9
48,377,130
Ne
t
p
o
s
i
t
i
o
n
,
e
n
d
o
f
y
e
a
r
23
,
4
1
2
,
8
1
5
$
25
,
6
0
1
,
1
8
2
$
49,013,997 $
Se
e
a
c
c
o
m
p
a
n
y
i
n
g
n
o
t
e
s
a
n
d
i
n
d
e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
- 2
0
-
Ch
a
n
g
e
s
i
n
N
e
t
P
o
s
i
t
i
o
n
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
ST
A
T
E
M
E
N
T
O
F
A
C
T
I
V
I
T
I
E
S
Fo
r
t
h
e
y
e
a
r
e
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
7
Pr
o
g
r
a
m
R
e
v
e
n
u
e
s
GO
V
E
R
N
M
E
N
T
-
W
I
D
E
Ca
p
i
t
a
l
Ge
n
e
r
a
l
De
b
t
S
e
r
v
i
c
e
Str
e
e
t
Ke
n
o
Pr
o
j
e
c
t
s
Fu
n
d
Fu
n
d
Fu
n
d
Fu
n
d
Fu
n
d
Total
AS
S
E
T
S
Ca
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
1,5
3
0
,
3
4
0
$
-
$
25
5
,
9
6
4
$
-
$
25
,
3
6
5
$
1,811,669
$
Re
c
e
i
v
a
b
l
e
s
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
-
16
8
,
2
1
8
-
-
168,218
Sa
l
e
s
t
a
x
37
3
,
9
8
9
-
-
-
-
373,989
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
9,3
9
3
99
2
,
0
4
4
-
-
-
1,001,437
Ot
h
e
r
4,2
6
3
-
-
3,0
5
0
-
7,313
Pr
o
p
e
r
t
y
t
a
x
e
s
r
e
c
e
i
v
a
b
l
e
14
9
,
9
9
0
3,9
2
7
17
,
9
0
5
-
-
171,822
Re
s
t
r
i
c
t
e
d
c
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
Ca
s
h
57
5
,
4
1
2
1,3
5
6
,
6
0
8
-
15
8
,
9
5
0
-
2,090,970
Ce
r
t
i
f
i
c
a
t
e
s
o
f
d
e
p
o
s
i
t
15
0
,
0
0
0
-
-
-
-
150,000
To
t
a
l
a
s
s
e
t
s
2,7
9
3
,
3
8
7
$
2,3
5
2
,
5
7
9
$
44
2
,
0
8
7
$
16
2
,
0
0
0
$
25
,
3
6
5
$
5,775,418
$
LI
A
B
I
L
I
T
I
E
S
Ac
c
o
u
n
t
s
p
a
y
a
b
l
e
99
,
3
5
3
$
-
$
27
9
,
0
8
7
$
-
$
-
$
378,440
$
Ac
c
r
u
e
d
e
x
p
e
n
s
e
s
37
,
3
9
9
-
8,6
6
3
-
-
46,062
Ba
n
k
o
v
e
r
d
r
a
f
t
-
-
-
-
-
-
De
p
o
s
i
t
s
p
a
y
a
b
l
e
49
,
5
3
4
-
-
-
-
49,534
Re
v
e
n
u
e
a
n
t
i
c
i
p
a
t
i
o
n
n
o
t
e
-
-
-
-
-
-
Re
g
i
s
t
e
r
e
d
w
a
r
r
a
n
t
s
-
-
-
-
-
-
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
18
6
,
2
8
6
-
28
7
,
7
5
0
-
-
474,036
DE
F
E
R
R
E
D
I
N
F
L
O
W
S
O
F
R
E
S
O
U
R
C
E
S
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
-
16
8
,
2
1
8
-
-
168,218
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
9,3
9
3
99
2
,
0
4
4
-
-
-
1,001,437
Pr
o
p
e
r
t
y
t
a
x
e
s
11
5
,
0
0
0
3,0
0
3
17
,
4
9
5
-
-
135,498
To
t
a
l
d
e
f
e
r
r
e
d
i
n
f
l
o
w
s
o
f
r
e
s
o
u
r
c
e
s
12
4
,
3
9
3
99
5
,
0
4
7
18
5
,
7
1
3
-
-
1,305,153
FU
N
D
B
A
L
A
N
C
E
S
Re
s
t
r
i
c
t
e
d
De
b
t
s
e
r
v
i
c
e
-
1,3
5
7
,
5
3
2
-
-
-
1,357,532
Do
n
a
t
e
d
f
u
n
d
s
59
,
4
5
9
-
-
-
-
59,459
Ec
o
n
o
m
i
c
d
e
v
e
l
o
p
m
e
n
t
49
1
,
0
4
3
-
-
-
-
491,043
Re
s
c
u
e
s
q
u
a
d
17
2
,
6
8
2
-
-
-
-
172,682
Re
u
s
e
f
u
n
d
s
6
-
-
-
-
6
Co
m
m
u
n
i
t
y
b
e
t
t
e
r
m
e
n
t
-
-
-
16
2
,
0
0
0
-
162,000
Co
m
m
i
t
t
e
d
Ca
p it
a
l
p ro
j ec
t
s
-
-
-
-
25
,
3
6
5
25,365
As
s
i
g
n
e
d
En
c
u
m
b
r
a
n
c
e
s
97
,
1
3
1
-
-
-
-
97,131
Un
a
s
s
i
g
n
e
d
1,6
6
2
,
3
8
7
-
(3
1
,
3
7
6
)
-
-
1,631,011
To
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
2,4
8
2
,
7
0
8
1,3
5
7
,
5
3
2
(3
1
,
3
7
6
)
16
2
,
0
0
0
25
,
3
6
5
3,996,229
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
,
d
e
f
e
r
r
e
d
i
n
f
l
o
w
s
a
n
d
f
u
n
d
b
a
l
a
n
c
e
s
2,7
9
3
,
3
8
7
$
2,3
5
2
,
5
7
9
$
44
2
,
0
8
7
$
16
2
,
0
0
0
$
25
,
3
6
5
$
5,775,418
$
- 2
1
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
GO
V
E
R
N
M
E
N
T
A
L
F
U
N
D
S
BA
L
A
N
C
E
S
H
E
E
T
Se
p
t
e
m
b
e
r
3
0
,
2
0
1
7
Se
e
a
c
c
o
m
p
a
n
y
i
n
g
n
o
t
e
s
a
n
d
i
n
d
e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
Fund balances of governmental funds 3,996,229$
Amounts reported for governmental activities in the statement of
net position are different because
Long-term receivables are not current financial resources and
therefore is not reported in the funds.-
Prepaid expenses are not a current financial resource. Therefore,
they are not included in the governmental funds.18,367
Capital assets, net of depreciation, are not current financial
resources and are not included in the governmental funds.23,108,891
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds.(215,236)
Accrued interest does not require current financial resources and
therefore is not reported in the funds.(19,589)
Nonrefundable prepaid deposits are reported as current resources in the
government funds, but are deferred invlows on the government-wide statements.(46,000)
Bonds payable are not a current financial resource. Therefore,
they are not included in the governmental funds.(4,735,000)
Taxes and special assessments receivable that are not available to pay for current period
expenditures are recorded as deferred inflows in the governmental funds.1,305,153
Net position of governmental activities 23,412,815$
See accompanying notes and independent auditor's report
- 22 -
City of Blair, Nebraska
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
September 30, 2017
TO THE STATEMENT OF NET POSITION
Ca
p
i
t
a
l
Ge
n
e
r
a
l
D
e
b
t
S
e
r
v
i
c
e
St
r
e
e
t
Ke
n
o
Pr
o
j ec
t
s
Fu
n
d
Fu
n
d
Fu
n
d
Fu
n
d
Fu
n
d
Total
RE
V
E
N
U
E
S
Ta
x
e
s
4 ,61
0
,54
8
$
48
,73
7
$
1 ,10
5
,32
0
$
-
$
11
1
,624
$
5 ,876 ,229 $
Ke
n
o
p ro
c
e
e
d
s
-
-
-
96
,21
5
-96 ,215
Ch
a
r
g es
f
o
r
s
e
r
v
i
c
e
s
1 ,69
7
,03
2
-
-
-
-1 ,697 ,032
S p ec
i
a
l
a
s
s
e
s
s
m
e
n
t
-
23
8
,32
0
-
-
-238 ,320
S p ec
i
a
l
a
s
s
e
s
s
m
e
n
t
i
n
t
e
r
e
s
t
-
15
9
,92
0
-
-
-159 ,920
In
t
e
r
e
s
t
i
n
c
o
m
e
6 ,53
5
90
9
12
6
59
-7 ,629
In
t
e
r
g ov
e
r
n
m
e
n
t
a
l
20
9
,09
3
-
1 ,26
2
,47
7
-
-1 ,471 ,570
Ot
h
e
r
r
e
v
e
n
u
e
s
22
9
,93
1
2 ,20
0
26
,93
3
-
-259 ,064
To
t
a
l
r
e
v
e
n
u
e
s
6 ,75
3
,13
9
45
0
,08
6
2 ,39
4
,85
6
96
,27
4
11
1
,624
9 ,805 ,979
EX
P
E
N
D
I
T
U
R
E
S
Ad
m
i
n
i
s
t
r
a
t
i
o
n
1 ,76
8
,38
4
6 ,66
1
-
-
1 ,116 1 ,776 ,161
Po
l
i
c
e
D
e
p ar
t
m
e
n
t
1 ,89
7
,70
9
-
-
-
-1 ,897 ,709
Fi
r
e
D
e
p ar
t
m
e
n
t
32
8
,03
7
-
-
-
-328 ,037
Pa
r
k
s
D
e
p ar
t
m
e
n
t
55
1
,12
7
-
-
-
-551 ,127
Li
b
r
a
r
y
1 ,55
7
,62
8
-
-
-
-1 ,557 ,628
Sw
i
m
m
i
n
g p oo
l
78
,21
2
-
-
-
-78 ,212
Zo
n
i
n
g
26
3
,61
9
-
-
-
-263 ,619
An
i
m
a
l
c
o
n
t
r
o
l
95
,29
6
-
-
-
-95 ,296
Ca
p it
a
l
o
u
t
l
a
y
10
6
,30
7
-
94
2
,08
2
-
-1 ,048 ,389
Do
n
a
t
e
d
f
u
n
d
s
38
,09
6
-
-
-
-38 ,096
Mi
t
i
g at
i
o
n
12
,39
5
-
-
-
-12 ,395
Ke
n
o
e
x
p en
s
e
-
-
-
21
,62
6
-21 ,626
Co
m
m
u
n
i
t
y b
e
t
t
e
r
m
e
n
t
-
-
-
-
--
St
r
e
e
t
-
-
3 ,81
9
,63
5
-
-3 ,819 ,635
De
b
t
s
e
r
v
i
c
e
Pr
i
n
c
i
p le
-
2 ,10
5
,00
0
-
-
10
0
,000
2 ,205 ,000
In
t
e
r
e
s
t
-
94
,20
3
22
,58
1
-
26
,363 143 ,147
Bo
n
d
i
s
s
u
a
n
c
e
c
o
s
t
-
36
,18
8
-
-
-36 ,188
To
t
a
l
e
x
p en
d
i
t
u
r
e
s
6 ,69
6
,81
0
2 ,24
2
,05
2
4 ,78
4
,29
8
21
,62
6
12
7
,479
13 ,872 ,265
EX
C
E
S
S
(
D
E
F
I
C
I
E
N
C
Y
)
O
F
R
E
V
E
N
U
E
S
OV
E
R
E
X
P
E
N
D
I
T
U
R
E
S
56
,32
9
(1 ,79
1
,96
6
)
(2 ,38
9
,44
2
)
74
,64
8
(15
,855 )(4 ,066 ,286 )
OT
H
E
R
F
I
N
A
N
C
I
N
G
S
O
U
R
C
E
S
(
U
S
E
S
)
Sa
l e
o
f a
s
s
e
t
s
35
0
,62
5
96
,00
0
-
-
-446 ,625
In
s
u
r
a
n
c
e
p
r
o
c
e
e
d
s
-
-
5 ,31
4
-
-5 ,314
Pr
o
c
e
e
d s f ro
m
i ss
u
a
n
c
e
o
f r
e
f un
di
ng
b on
d
-
2 ,89
5
,00
0
-
-
-2 ,895 ,000
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
i
n
2 ,91
2
,06
8
43
9
,72
9
4 ,45
0
,90
1
-
30
,000 7 ,832 ,698
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
o
u
t
(4 ,54
3
,21
4
)
(1 ,08
8
,72
7
)
(1 ,36
3
,33
9
)
(10
0
,45
3
)
-(7 ,095 ,733 )
To
t
a
l
o
t
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
(1 ,28
0
,52
1
)
2 ,34
2
,00
2
3 ,09
2
,87
6
(10
0
,45
3
)
30
,000
4 ,083 ,904
N ET
C
H
A
N
G
E
I
N
F
U
N
D
B
A
L
A
N
C
E
S
(1
,
2
2
4
,
1
9
2
)
55
0
,
0
3
6
70
3
,
4
3
4
(2
5
,
8
0
5
)
14
,
1
4
5
17,618
FU
N
D
B
A
L
A
N
C
E
S
,
B
E
G
I
N
N
I
N
G
O
F
Y
E
A
R
3,
7
0
6
,
9
0
0
68
7
,
4
9
6
(7
3
4
,
8
1
0
)
18
7
,
8
0
5
11
,
2
2
0
3,858,611
PR
I
O
R
P
E
R
I
O
D
A
D
J
U
S
T
M
E
N
T
-
12
0
,
0
0
0
-
-
-120,000
FU
N
D
B
A
L
A
N
C
E
S
,
B
E
G
I
N
N
I
N
G
O
F
Y
E
A
R
-
R
E
S
T
A
T
E
D
3,
7
0
6
,
9
0
0
80
7
,
4
9
6
(7
3
4
,
8
1
0
)
18
7
,
8
0
5
11
,
2
2
0
3,978,611
FU
N
D
BA
L
A
N
C
E
S
,
EN
D
OF
YE
A
R
2 ,48
2
,70
8
$
1 ,35
7
,53
2
$
(3
1
,37
6
)
$
16
2
,00
0
$
25
,365
$
3 ,996 ,229 $
- 2
3
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
ST
A
T
E
M
E
N
T
O
F
R
E
V
E
N
U
E
S
,
E
X
P
E
N
D
I
T
U
R
E
S
,
A
N
D
C
H
A
N
G
E
S
I
N
F
U
N
D
B
A
L
A
N
C
E
-
G
O
V
E
R
N
M
E
N
T
A
L
F
U
N
D
S
Fo
r
t
h
e
y
e
a
r
e
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
7
Se
e
a
c
c
o
m
p
a
n
y
i
n
g
n
o
t
e
s
a
n
d
i
n
d
e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
Net changes in fund balance - total governmental funds 17,618$
Amounts reported for governmental activities in the statement of activities
differ from the amounts reported in the statement of revenues,
expenditures, and changes in fund balances because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, the costs of those assets are allocated over
their estimated useful lives as functional expense when the cost is above
the capitalization threshhold. The activity is reconciled as follows:
Cost of assets capitalized, net of retirements 2,277,628
Depreciation expense (1,267,240)
Sale and disposition of assets that are reported as receipts of current financial
resources in the government funds, but are reported as a reduction of assets
and a net gain or lossin that government-wide statements (205,620)
Repayment of bond principal is an expenditure in the
govermental funds, but the repayment reduces long-term liabilities
in the statement of net position.2,205,000
Income that is recognized as current financial resources, but are not
reported as revenue at the government-wide statements 59,710
Income recognized at the government-wide statements that is not a current financial
resource in the government funds.303,716
Changes in liabilities reported in the statement of net position that do not require
the use of current financial resources, and therefore, the change is not reported
in governmental funds, but is reported in the statement of activities.(41,468)
Transfers of contruction in progress from the general government to proprietary funds
assets that are not current financial resources in the government funds -
Change in net position of governmental activities 454,344$
See accompanying notes and independent auditor's report
- 24 -
City of Blair, Nebraska
GOVERNMENTAL FUNDS
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
For the year ended September 30, 2017
TO THE STATEMENT OF ACTIVITIES
Water Sewer Total
CURRENT ASSETS
Cash 3,410,868$ 284,294$ 3,695,162$
Accounts receivable - Utilities/user fees 1,276,693 195,933 1,472,626
Accrued interest receivable 5,452 268 5,720
Prepaid expense 10,258 3,657 13,915
Total current assets 4,703,271 484,152 5,187,423
NON-CURRENT ASSETS
Restricted assets
Bond and interest sinking fund cash
and investments 2,135,936 239,758 2,375,694
Total non-current assets 2,135,936 239,758 2,375,694
CAPITAL ASSETS
Land 373,908 49,875 423,783
Construction in progress 1,313,732 5,379 1,319,111
Infrastructure 21,561,310 3,223,677 24,784,987
Buildings 39,297,103 6,310,834 45,607,937
Equipment 1,881,289 1,236,692 3,117,981
Accumulated depreciation (21,805,755) (5,660,220) (27,465,975)
Total capital assets 42,621,587 5,166,237 47,787,824
TOTAL ASSETS 49,460,794$ 5,890,147$ 55,350,941$
CURRENT LIABILITIES
Accounts payable 343,260$ 28,084$ 371,344$
Accrued expenses 151,713 64,291 216,004
Accrued interest 306,583 29,155 335,738
Deposits 1,700 - 1,700
Bonds payable, current portion 1,818,146 124,949 1,943,095
Total current liabilities 2,621,402 246,479 2,867,881
NON-CURRENT LIABILITIES
Bonds payable, net of current portion 24,492,953 2,388,925 26,881,878
Total liabilities 27,114,355 2,635,404 29,749,759
NET POSITION
Net investment in capital assets 16,310,488 2,652,363 18,962,851
Restricted for debt service 2,135,936 239,758 2,375,694
Unrestricted 3,900,015 362,622 4,262,637
Total net position 22,346,439 3,254,743 25,601,182
Total liabilities and net position 49,460,794$ 5,890,147$ 55,350,941$
- 25 -
ASSETS
LIABILITIES AND NET POSITION
Enterprise Funds
City of Blair, Nebraska
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2017
See accompanying notes and ndependent auditor's report
Water Sewer Total
OPERATING REVENUES
Charges for services 7,567,317$ 1,159,842$ 8,727,159$
Sale of merchandise 29,795 - 29,795
Forfeited discounts 14,018 - 14,018
Other 65,944 1,602 67,546
Total operating revenues 7,677,074 1,161,444 8,838,518
EXPENSES
Personnel 1,223,292 450,346 1,673,638
Operating expenses 547,002 396,796 943,798
Utilities 781,532 64,148 845,680
Chemicals 1,302,580 43,066 1,345,646
Materials and supplies 72,215 6,053 78,268
Depreciation 1,714,015 262,542 1,976,557
Total expenses 5,640,636 1,222,951 6,863,587
OPERATING INCOME 2,036,438 (61,507) 1,974,931
NON-OPERATING REVENUES (EXPENSES)
Interest income 26,262 2,292 28,554
Interest expense (914,438) (73,462) (987,900)
Bonding costs (96,097) - (96,097)
Total nonoperating revenues (expenses) (984,273) (71,170) (1,055,443)
INCOME (LOSS) BEFORE TRANSFERS 1,052,165 (132,677) 919,488
OPERATING TRANSFERS
Operating transfers - in 49,129 175,361 224,490
Operating transfers - out (885,241) (76,214) (961,455)
Total operating transfers (836,112) 99,147 (736,965)
CHANGE IN NET POSITION 216,053 (33,530) 182,523
22,130,386 3,288,273 25,418,659
NET POSITION, END OF YEAR 22,346,439$ 3,254,743$ 25,601,182$
- 26 -
City of Blair, Nebraska
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the year ended September 30, 2017
See accompanying notes and independent auditor's report
Enterprise Funds
NET POSITION, BEGINNING OF YEAR
Water Sewer Total
Cash received from customers 7,658,613$ 1,168,057$ 8,826,670$
Cash payments to suppliers (2,678,214) (556,984) (3,235,198)
Cash payments to employees (1,191,205) (438,359) (1,629,564)
Cash provided from operating activities 3,789,194 172,714 3,961,908
CASH FLOWS FROM NON-CAPITAL
FINANCIAL ACTIVITIES
Operating transfers (836,112) 99,147 (736,965)
Cash provided from non-capital financial
activities (836,112) 99,147 (736,965)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (1,454,844) (49,968) (1,504,812)
Proceeds from issuance of debt 3,460,000 - 3,460,000
Principle paid on notes and bonds (4,651,528) (119,123) (4,770,651)
Interest paid on notes and bonds (860,827) (75,332) (936,159)
Bond issuance costs (96,097) - (96,097)
Cash used from capital and related
financing activities (3,603,296) (244,423) (3,847,719)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from interest earnings 20,810 2,024 22,834
Disbursements from (to) restricted assets (200,001) - (200,001)
Cash provided from investing activities (179,191) 2,024 (177,167)
CHANGE IN CASH AND CASH EQUIVALENTS (829,405) 29,462 (799,943)
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 4,240,273 254,832 4,495,105
CASH AND CASH EQUIVALENTS,
END OF YEAR 3,410,868$ 284,294$ 3,695,162$
City of Blair, Nebraska
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
September 30, 2017
CASH FLOWS FROM OPERATING ACTIVITIES
Enterprise Funds
See accompanying notes and independent auditor's report.
-27-
Water Sewer Total
Reconciliation of operating income to net cash
from operating activities
Operating income 2,036,438$ (61,507)$ 1,974,931$
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation 1,714,015 262,542 1,976,557
Change in receivables (18,461) 6,613 (11,848)
Change in prepaid expenses (873) (720) (1,593)
Change in accounts payable 25,988 (46,201) (20,213)
Change in accrued expenses 32,087 11,987 44,074
Total adjustments 1,752,756 234,221 1,986,977
CASH PROVIDED FROM OPERATING ACTIVITIES 3,789,194$ 172,714$ 3,961,908$
See accompanying notes and independent auditor's report.
-28-
Enterprise Funds
City of Blair, Nebraska
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
September 30, 2017
Pension TIF
Trust Fund Fund 1
ASSETS
Cash -$ 2,795$
Investment in fiscal agent:
Principal investment accounts 8,818,807 -
Guaranteed interest accounts 306 -
Total Assets 8,819,113$ 2,795$
LIABILITIES
Held for others -$ 2,795$
Total Liabilities
NET POSITION
Net position (deficit) held in trust for retirement 8,819,113 -
Total Net Position 8,819,113 -
Total liabilities and net position 8,819,113$ 2,795$
See accompanying notes and independent auditor's report
- 29 -
City of Blair, Nebraska
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
September 30, 2017
Pension
Trust Fund
Additions
Contributions
Employer 286,683$
Employee 283,416
Rollover 5,687.00
Total Contributions 575,786
Investment Earnings
Dividends 2,836
Net increase in the fair value of investments 1,060,331
Total Additions 1,638,953
Deductions
Withdrawals 18,270
Contribution credit-forfeitures 2,561
Administrative expenses 4,734
Terminations 335,724
Total Deductions 361,289
Change in Net Position 1,277,664
Net Position, Beginning of Year 7,541,449
Net Position, End of Year 8,819,113$
City of Blair, Nebraska
FIDUCIARY FUNDS
September 30, 2017
See accompanying notes and independent auditor's report
- 30 -
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 31 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The following is a summary of the significant accounting policies of the City of Blair,
Nebraska:
1. Reporting Entity
The City of Blair, Nebraska (the City) is a Municipal Corporation which was
founded and incorporated in 1869. With a population of 8,013, the City of Blair
functions as a City of the First Class under Nebraska Statutes. The City operates
under a Mayor/Council form of government and provides the following services:
public safety, streets, culture and recreation, public improvements, planning and
zoning, water and sewer services, and general administrative services. This report
includes all funds of the City (the “primary government”). There are no
component units.
2. Basis of Accounting/Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is
considered a separate accounting entity. The operations of each fund are
accounted for with a separate set of self-balancing accounts that comprise its
assets, liabilities, fund equity, revenues, and expenditures. Governmental
resources are allocated to and accounted for in individual funds based upon the
purpose for which they are to be spent and the means by which spending activities
are controlled.
Government-Wide Financial Statements
The City’s government-wide financial statements include a statement of net
position and a statement of activities (including changes in net position). These
statements are prepared using the standards of the Governmental Accounting
Standards Board (GASB), General Accepted Accounting Principles (GAAP) as
well as FASB pronouncements issued through November 30, 1989. These
statements present summaries of governmental and business-type activities for the
City. These statements are presented on an “economic resources” measurement
focus and the accrual basis of accounting.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 32 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Government-Wide Financial Statements – Continued
Accordingly, all of the City’s assets and liabilities, including capital assets and
infrastructure, as well as long-term debt, are included in the statement of net
position. The statement of activities presents changes in net position. Under the
accrual basis of accounting, revenues are recognized in the period in which they
are earned while expenses are recognized in the period in which the liability is
incurred.
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. The types of transactions
reported as program revenues for the City are reported in three categories: 1)
charges for services, 2) operating grants and contributions, and 3) capital grants
and contributions. Charges for services include revenues from customers or
applicants who purchase, use, or directly benefit from goods, services, or
privileges provided by a given function. Grant and contributions include revenues
restricted to meeting the operational or capital requirements of a particular
function. Taxes and other items not properly included among program revenues
are reported instead as general revenues.
All internal balances in the statement of net position and internal transactions in
the statement of activities have been eliminated. The purpose of transfers
between funds was to record proper allocation of expenses.
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, including special
assessments. Internally dedicated resources are reported as general revenues
rather than as program revenues. Likewise, general revenues include all taxes.
Fiduciary activities of the City are not included in these statements.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 33 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Governmental Fund Financial Statements
Governmental fund financial statements include a balance sheet and a statement
of revenues, expenditures, and changes in fund balances for all major
governmental funds. An accompanying schedule is presented to reconcile and
explain the differences in fund balances as presented in these statements to the net
position presented in the government-wide financial statements. The City has
presented all major funds that meet the qualifications of GASB Statement No. 34,
and has chosen to optionally present as major certain other funds (Keno and
Capital Projects) that do not meet the major fund requirements.
All governmental funds are accounted for on a spending or “current financial
resources” measurement focus and the modified accrual basis of accounting.
Accordingly, capital assets and bonds payable are not included on the balance
sheet. The statement of revenues, expenditures and changes in fund balances
present increases (revenues and other financing sources) and decreases
(expenditures and other financing uses) in fund balances. Under modified accrual
basis of accounting, revenues are recognized in the accounting period in which
they become both measurable and available to finance expenditures of the current
period. Measurable means knowing or being able to reasonably estimate the
amount. Available means collectible within the current period or within 30 days
after year end. Expenditures (including capital outlay) are recorded when the
related fund liability is incurred. An exception to this general rule is principal and
interest on general long-term debt which is recognized when due.
The City reports the following major governmental funds:
The General Fund is the government’s primary operating fund. It accounts for all
financial resources of the City, except those required to be accounted for in
another fund.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 34 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Governmental Fund Financial Statements – Continued
The Debt Service Fund is used to account for the payment of principal and
interest on general long-term debt. The primary sources of revenue are property
taxes and special assessments.
The Street Fund is used to record transactions in the Street department, as the
State of Nebraska requires an accounting to verify the matching of funds it
provides for this purpose.
The Keno Fund maintains an accounting of Keno gambling activity because the
funds earned are restricted to community betterment projects and require special
state reporting.
The Capital Projects Fund is used to fund capital project construction,
development, improvement, and repairs.
Proprietary Fund Financial Statements
Proprietary Fund Financial Statements include a statement of net position, a
statement of revenues, expenses and changes in fund net position, and a statement
of cash flows for each major proprietary fund. A column representing internal
service funds is also presented in these statements.
Proprietary funds are accounted for using the “economic resources” measurement
focus and the accrual basis of accounting. Accordingly, all assets and liabilities
(whether current or noncurrent) are included on the statement of net position. The
statement of revenues, expenses and changes in fund net position presents
increases (revenues) and decreases (expenses) in total net position. Under the
accrual basis of accounting, revenues are recognized in the period in which they
are earned while expenses are recognized in the period in which the liability is
incurred.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 35 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Proprietary Fund Financial Statements – Continued
Proprietary funds distinguish operating revenues and expenses from non-
operating 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. 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 non-operating revenues and expenses.
The City reports the following major proprietary funds:
The Water and Sewer Fund accounts for the activities related to the operation of
the City’s water delivery and sewage systems. It operates the water treatment and
sewer treatment plants, water distribution systems, sewer collection systems, and
pump stations.
Fiduciary Fund Financial Statements
Fiduciary fund financial statements include a statement of net position. The
City’s Fiduciary fund represents an agency fund, which is custodial in nature
(assets equal liabilities) and does not involve measurement of results of
operations. Accordingly, it presents only a statement of fiduciary net position and
does not present a statement of changes in fiduciary net position. Fiduciary funds
are not reflected in the government-wide financial statements because the
resources of those funds are not available to support the City’s own programs.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 36 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Fiduciary Fund Financial Statements – Continued
The agency fund is accounted for on a spending or “economic resources”
measurement focus and the accrual basis of accounting as is the proprietary funds
explained above.
The City reports the following fiduciary fund:
TIF 1 Fund - An agency fund that accounts for the activities related to
redevelopment costs financed by tax incremental finance bonds. The tax
incremental finance bonds are to be paid by the taxes of the redeveloped area.
Pension Trust Funds – Trust funds account for assets held by the City for the
members and beneficiaries of defined benefit and contribution pension plans and
deferred compensation plan. The reporting entity includes the following trust
funds:
Police Pension Accounts for the administration of the police pension
fund under the defined contribution plan.
Police Disability Accounts for the administration of the police disability
employee benefit plan.
General Government Accounts for the administration of the non- police
Pension employees' pension funds under the defined
contribution plan.
Deferred Compensation Accounts for the administration of employees that want
Plan to make additional contributions into a plan under the
deferred compensation plan.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 37 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
3. Budgetary Policy and Control
Budgetary Basis of Accounting
The City’s legally adopted budget is not in conformity with accounting principles
generally accepted in the United States of America, but meets the requirements of
the Nebraska Budget Act. The budget is prepared and adopted using the cash
basis of accounting whereby revenues budgeted are expected to be received rather
than earned and expenditures budgeted are expected to be disbursed rather than
incurred. Differences between the budgeted basis of accounting and the generally
accepted basis are reconciled in the budget to actual schedule in the required
supplementary information. The City Council sets the property tax levy needed to
support the coming year’s budget in August of each year and submits its budget as
required by State statute.
Budgetary Control
Each fund’s appropriated budget is prepared on a detailed line item basis.
Revenues are budgeted by source. Expenditures are budgeted by department.
Expenditures at the fund level constitute the legal level of control. Expenditures
may not exceed appropriations at this level. All budget revisions at this level are
subject to final review by the Council. No revisions to the budget were made for
the year ended September 30, 2017.
4. The Use of Estimates
The preparation of financial statements in conformity with generally accepted
accounting principles requires management to make estimates and assumptions
that affect certain reported amounts and disclosures. Accordingly, actual results
could differ from those estimates.
5. Deposits and Investments
The City’s cash and cash equivalents are considered to be cash on hand, demand
deposit and short-term investments with original maturities of three months or
less from the date of acquisition.
Investments are restricted and consist of certificates of deposit shown at cost.
There are no significant differences in cost and fair values at September 30, 2017.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 38 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
6. Capital Assets
Capital assets, which include land, buildings, construction in progress, and
equipment (furniture, vehicles, etc.) and infrastructure assets ( s t r e e t s y s t e m s ,
storm drains, etc.), are reported in governmental activities column of the
government-wide financial statements. Capital assets are defined by the City as
assets with an initial, individual cost of more than $5,000. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed.
Donated or annexed capital assets are recorded at estimated market value at the
date of donation or annexation.
The costs of normal maintenance or repairs that do not add to the value of the
asset or materially extend assets lives are not capitalized. Major outlays for
capital assets and improvements are capitalized as projects are constructed. The
City qualifies for the exemption under GASB 34 to not retroactively apply the
capitalization requirements of general infrastructure assets.
Depreciation is recorded in the government-wide financial statements on a
straight-line basis over the useful life of the assets as follows:
Assets Years
Equipment 10
Small Vehicles 5
Large Vehicles (i.e. Ambulance & Fire Truck) 10 to 20
Buildings 40
Infrastructure 40
7. Property Taxes
Property tax revenue is recognized when collected by the County as the City’s
agent within the current period. There are no property taxes due which are not
delinquent and all delinquent taxes are considered collectible.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 39 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
7. Property Taxes - Continued
The City’s December 31, 2016, valuation was $522,484,420. The levy for the
City for the year ending September 30, 2017, was $0.358163 per $100 of value.
The total tax levy was $1,871,804. Property taxes are collected by the County
and are due December 31 of each year and delinquent in halves at May 1 and
September 1 of the following year. In-lieu of tax receipts are equivalent in value
to payments for service provided.
8. Claims and Judgments Payable
The City records a liability for litigation, judgments, and claims when it is
probable that an asset has been impaired or a liability has been incurred prior to
year-end and the probable amount of loss (net of any insurance coverage) can be
reasonably estimated. The liability, if any, is reported in the government-wide
statement of net position. The portion of the liability, which will be liquidated
with expendable, available financial resources, if any, is reflected as a liability of
applicable governmental funds.
9. Compensated Absences
General leave for the City includes both vacation and sick pay. Vacation leave is
based on an employee’s length of employment. An employee is allowed to carry
forward each year, on their anniversary date, that year’s earned vacation, plus 40
hours. Sick leave is earned at a rate approved by the personnel manual, which is
currently six (6) hours per month. Sick leave can be accumulated to a maximum
of 928 hours and can only be used for illness, medical care, and care of sick
members of the immediate family per the personnel manual.
Upon termination of employment, an employee is entitled to be compensated for
all accumulated unused vacation pay. Unused sick leave is compensated as
follows: (1) Upon death or retirement, 50% (2) Upon resignation in good
standing, 5% after 10 years of employment increasing to a maximum of 50% after
20 years of employment.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 40 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
10. Restricted Assets
Assets are reported as restricted when limitations on their use change the nature or
normal understanding of the availability of the asset. Such constraints are either
externally imposed by creditors, contributions, grantors, or laws of other
governments, or are imposed by law through constitutional provisions or enabling
legislation. The City’s policy is to first apply restricted resources to an expense
when incurred for purposes for which both restricted and unrestricted net assets
are available. Restricted assets in the governmental funds are related to the
reserved fund balances. Restricted assets in the proprietary funds are related to
the restricted for debt service fund balances.
11. Allowance for Doubtful Accounts
The City uses the direct write-off for uncollectable accounts. The City determined
that all receivable balances at September 30, 2017, were collectible.
12. Transfers
Transfers are used to move revenues from the fund that statute or budget requires
to collect them to the fund that statute or budget requires to expend them and to
move unrestricted revenue collected in the general fund to finance various
programs accounted for in other funds in accordance with budgetary
authorizations. Transfers are related to funding for capital projects, debts service,
or reallocations of special revenues. They are intended to maintain fund balances
and allocate the City’s resources.
Interfund transfers were as follows for the year ended September 30, 2017:
Transfers Out: General Fund
Debt
Service Street Fund
Capital
Projects Fund Water Sewer Total
General Fund 1,473,850$ 64,155$ 2,975,209$ 30,000$ -$ -$ 4,543,214$
Debt Service - - 962,737 - 49,129 76,861 1,088,727
Street Fund 1,002,765 360,574 - - - - 1,363,339
Keno Fund 85,453 15,000 - - - - 100,453
Water 350,000 - 436,741 - - 98,500 885,241
Sewer - - 76,214 - - - 76,214
2,912,068$ 439,729$ 4,450,901$ 30,000$ 49,129$ 175,361$ 8,057,188$
Transfers In :
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 41 -
NOTE B. DEPOSITS AND INVESTMENTS
Deposits and investments consist of demand deposits and certificates of deposit. The
City maintains a cash pool that is available for all funds. The City’s cash deposits and
certificates of deposit were either entirely insured or collateralized with securities held by
the pledging financial institutions in the City’s name. The carrying amount of the City’s
cash deposits was $10,125,924 at September 30, 2017. The bank balances of the City’s
cash deposits at September 30, 2017, was $10,205,879. The City’s carrying amount and
bank balances include $1,877,020 of traditional certificates of deposit and $648,673 of
certificates of deposit that are part of the Certificate of Deposit Account Registry Service
(CDARS). Each of the certificates of deposit has a maturity date less than one year.
The City has no formal policy for handling credit risk, interest rate risk, or concentration
risk; however, deposits and investments consist of demand deposits and certificates of
deposits. The statutes of the State of Nebraska require that local governmental units
follow the “prudent man” rule with deposits, and that deposits be secured by collateral
valued at market or par whichever is lower less the amount insured by the Federal
Deposit Insurance Corporation. The City has no deposit and investment policy that
would further limit its deposits, but the City administratively has required all deposits to
be collateralized at 100%.
The City of Blair has a number of cash funds and investments that are restricted due to
donor imposed restrictions or for purposes related to the fund. The certificates of deposit
of $2,375,694 are restricted for the enterprise funds (Water and Sewer) for bond and
interest expenditures. The cash in the Donations Fund is restricted based on the donor
imposed restrictions. The cash in the Economic Development Fund is restricted for
economic development and can only be used if it is approved via vote per the City
Council. The City Council annually decides how much to budget for the fund. The
budget is set not to exceed 1/10 of one per cent of the annual City valuation.
The cash in the Debt Service Fund is restricted for the special assessments pledged for
the payment of the G.O. bonds. The cash in the Capital Projects (TIF 1) is restricted to
pay for the construction projects. If a balance exists after the completion of the projects
at the end of the 15 years, those funds would be required to be returned to the County
Treasurer for distribution to all taxing entities. The cash in the Water Fund is restricted
to pay for the construction and related costs of the water plant expansion contract. If any
funds are still available upon completion of the plant expansion project, the unused funds
could only be used to pay principle and interest on the bond notes. These funds were
received per the bond anticipation note.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 42 -
NOTE B. DEPOSITS AND INVESTMENTS – CONTINUED
The cash in the Rescue Squad Fund is restricted for the use of the City Fire and Rescue
Departments. The cash in the Reuse fund is restricted and can only be used per the Reuse
plan or be forfeited to the Nebraska Department of Economic Development. The cash in
the Keno fund is restricted for Keno purposes.
The following is detail of amounts included in cash, which are restricted for specific
purposes:
Fund Amount
Keno 158,950$
General-Reuse 6
General-Rescue Squad 172,682
Water 2,135,936
Sewer 239,758
Library Fund -
Debt Service 1,356,608
General-Economic Development 491,043
General-Donations 61,681
4,616,664$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 43 -
NOTE C. CAPITAL ASSETS
A summary of changes in capital assets is as follows:
Governmental Activities
Balance
September 30,
2016 Increases Decreases
Balance
September 30,
2017
Capital assets not depreciated
Land 1,284,452$ 30,400$ (87,768)$ 1,227,084$
Construction in progress 225,528 951,236 (1,075,792) 100,972
Total capital assets not depreciated 1,509,980 981,636 (1,163,560) 1,328,056
Other capital assets
Infrastructure 17,290,590 1,048,932 - 18,339,522
Buildings 8,893,406 - (237,217) 8,656,189
Equipment 5,898,522 1,322,853 (127,519) 7,093,856
Total other capital assets 32,082,518 2,371,785 (364,736) 34,089,567
Less accumulated depreciated
Infrastructure (3,980,115) (573,231) - (4,553,346)
Buildings (3,768,083) (231,070) 119,364 (3,879,789)
Equipment (3,540,177) (462,939) 127,519 (3,875,597)
Total accumulated depreciation (11,288,375) (1,267,240) 246,883 (12,308,732)
Other capital assets, net 20,794,143 1,104,545 (117,853) 21,780,835
Governmental activities capital assets, net 22,304,123$ 2,086,181$ (1,281,413)$ 23,108,891$
Depreciation expense was charged to governmental activities functions as follows:
Current
Depreciation
Impairment
Loss
Total Change in
Accumulated
Depreciation
Administration 64,741$ -
Police 102,824 -
Fire 109,427 -
Parks 131,966 -
Library 59,539 -
Swimming pool 38,795 -
Animal control 17,971 -
Rescue Squad 30,795 -
Streets 711,182 -
Total Depreciation 1,267,240$ -$ 1,267,240$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 44 -
NOTE C. CAPITAL ASSETS – CONTINUED
Business-Type Activities
Balance
September 30,
2016 Increases Decreases
Balance
September 30,
2017
Capital assets not depreciated
Land 423,783$ -$ -$ 423,783$
Construction in progress 73,433 1,326,613 (80,935) 1,319,111
Total capital assets not depreciated 497,216 1,326,613 (80,935) 1,742,894
Other capital assets
Infrastructure 24,740,081 44,906 - 24,784,987
Buildings 45,607,934 3 - 45,607,937
Equipment 2,903,755 214,226 - 3,117,981
Total other capital assets 73,251,770 259,135 - 73,510,905
Less accumulated depreciated
Infrastructure (2,906,270) (696,752) - (3,603,022)
Buildings (20,357,699) (1,142,644) - (21,500,343)
Equipment (2,225,449) (137,161) - (2,362,610)
Total accumulated depreciation (25,489,418) (1,976,557) - (27,465,975)
Other capital assets, net 47,762,352 (1,717,422) - 46,044,930
Business-type activities, net 48,259,568$ (390,809)$ (80,935)$ 47,787,824$
Depreciation was charged to business-type activities as follows:
Current
Depreciation
Impairment
Loss
Total Change in
Accumulated
Depreciation
Water 262,542$ -
Sewer 1,714,015 -
Total Depreciation 1,976,557$ -$ 1,976,557$
NOTE D. BONDS PAYABLE
A summary of the changes followed by principal and interest schedules and is as follows:
Governmental Activities
Balance Balance Due
Interest September 30,September 30, within
Dated Description Rate 2016 Additions Reductions 2017 1 year
12/14/2007 Tax increment
financing bond
4.48%630,000$ - $ (100,000)$ 530,000$ 100,000 $
2/26/2008 Public safety tax
anticipation
bonds
3.65 - 4.25% 380,000 - (50,000) 330,000 50,000
11/15/2011 General
Obligation
Refunding Bond
1.6 - 3.60% 1,865,000 - (1,865,000) - -
7/28/2015 General
Obligation
1.25 - 2.65% 1,050,000 - (110,000) 940,000 105,000
1/15/2015 Bond
Anticipation Note
1.00% 3,500,000 - (3,500,000) - -
12/21/2015 Public safety tax
anticipation
bonds
1.05 - 2.60% 120,000 - (10,000) 110,000 10,000
5/2/2017 General
Obligation
0.90 - 3.75% - 2,895,000 (70,000) 2,825,000 230,000
Total governmental activities 7,545,000$ 2,895,000 $ (5,705,000)$ 4,735,000$ 495,000 $
City of Blair, Nebraska
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the year ended September 30, 2017
- 45 -
NOTE D. BONDS PAYABLE - CONTINUED
Business-type Activities
Balance Balance Due
Interest September 30, September 30, within
Dated Description Rate 2016 Additions Reductions 2017 1 year
WATER DEBT
9/28/2010 2010B Revenue
Bonds
2.75 - 4.35% 6,500,000 - - 6,500,000 -
9/28/2010 2010C Revenue
Bonds
3.25 - 3.50% 770,000 - (380,000) 390,000 390,000
6/15/2010 SRF 2010 2.25% 2,622,627 - (71,528) 2,551,099 73,146
6/5/2012 2012A Revenue
Bonds
2.45 - 5.50% 8,860,000 - (1,000,000) 7,860,000 1,000,000
5/15/2013 2013 Bond
Anticipation
Notes
2.25% 3,200,000 - (3,200,000) - -
8/24/2016 2016 Revenue
Bonds
1.50 - 4.00% 5,550,000 - - 5,550,000 355,000
3/28/2017 2017 Revenue
Bonds
2.00 - 4.75% - 3,460,000 - 3,460,000 -
Total water 27,502,627$ 3,460,000$ (4,651,528)$ 26,311,099$ 1,818,146$
SEWER DEBT
12/15/2004 2004 Revenue
Bonds
4.10 - 4.25% 225,000$ -$ (80,000)$ 145,000$ 75,000$
2/17/2011 2011 Revenue
Bonds
2.10% 762,997 - (39,123) 723,874 39,949
9/10/2015 2015 Revenue
Bonds
0.95 - 3.40% 1,645,000 - - 1,645,000 10,000
Total sewer 2,632,997$ - (119,123)$ 2,513,874$ 124,949$
Total business-type activates 30,135,624$ 3,460,000$ (4,770,651)$ 28,824,973$ 1,943,095$
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the year ended September 30, 2017
- 46 -
City of Blair, Nebraska
NOTE D. BONDS PAYABLE - CONTINUED
Governmental Activities
Principal Interest Total
495,000$ 120,843$ 615,843$
500,000 110,440 610,440
490,000 98,948 588,948
500,000 86,521 586,521
1,900,000 262,277 2,162,277
455,000 104,138 559,138
325,000 50,228 375,228
70,000 2,625 72,625
4,735,000$ 836,020$ 5,571,020$
Business-type Activities
Principal Interest Total
1,818,146$ 963,458$ 2,781,604$
1,434,801 884,362 2,319,163
1,906,494 846,324 2,752,818
1,503,224 788,655 2,291,879
7,633,484 3,114,778 10,748,262
7,038,020 1,879,739 8,917,759
3,598,419 557,030 4,155,449
1,125,378 77,418 1,202,796
253,133 7,160 260,293
26,311,099$ 9,118,924$ 35,430,023$
Principal Interest Total
124,949$ 63,063$ 188,012$
215,793 58,453 274,246
131,654 54,796 186,450
137,533 52,433 189,966
756,519 214,332 970,851
1,066,457 102,876 1,169,333
80,969 1,709 82,678
2,513,874$ 547,662$ 3,061,536$
- 47 -
Year ending September 30,
Total
Bonds issued for the water and sewer funds are collateralized by a pledge of revenues derived and to be
derived from the operations of the water and sewer fund. Sinking fund requirements for Water and
Sewer debt were a total reserve of $2,373,396 at September 30, 2017.
Year ending September 30,
Water Bonds
Sewer Bonds
Total
City of Blair, NebraskaNOTES TO FINANCIAL STATEMENTS - CONTINUED
For the year ended September 30, 2017
Year ending September 30,
2021
2018
2019
2020
2022 - 2026
2027 - 2031
2032-2036
2037
Total
2021
2018
2019
2020
2022 - 2026
2027 - 2031
2032 - 2036
2037 - 2041
2042 - 2043
2027 - 2031
2032 - 2033
2021
2018
2019
2020
2022 - 2026
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 48 -
NOTE E. NET POSITION AND FUND BALANCES
In the government-wide financial statements net position are classified in the following
categories:
Net Investment in Capital Assets - This category groups all capital assets,
including infrastructure, into one component of net position. Accumulated
depreciation on these assets reduces this category.
Restricted Net Position - This category presents external restrictions imposed by
creditors, grantors, contributors or laws or regulations of other governments and
restrictions imposed by law through constitutional provisions or enabling
legislation.
Unrestricted Net Position- This category represents the net position of the City
that is not restricted for any project or other purpose.
In the fund financial statements, certain significant changes in the statement require the
City to classify fund balances in the following categories:
Nonspendable fund balance—amounts that cannot be spent because they are
either not in a spendable form (such as inventories and prepaid amounts) or are
legally or contractually required to be maintained intact.
Restricted fund balance—amounts that can be spent only for specific purposes
because of constraints imposed by external providers (such as grantors,
bondholders, and higher levels of government), or imposed by constitutional
provisions or enabling legislation.
Committed fund balance—amounts that can be spent only for specific purposes
determined by a formal action of the government’s highest level of decision-
making authority.
Assigned fund balance—amounts the government intends to use for specific
purposes that do not meet the criteria to be classified as restricted or committed.
Unassigned fund balance—amounts that are available for any purpose; these
amounts can be reported only in the City’s General Fund.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 49 -
NOTE E. NET POSITION AND FUND BALANCES - CONTINUED
The formal spending processes adopted by the City Council allow departments to
encumber funds to make specific purchases that will actually be paid for in the next fiscal
year. The encumbrance must be in the form of an approved purchase order before the
end of the budget fiscal year. Department managers are authorized to make
encumbrances in their respective departments. They are included i n r e s t r i c t e d ,
committed, or assigned fund balances as appropriate. Encumbrances can be made in any
fund and do not lapse at year end.
NOTE F. RISK MANAGEMENT
The City of Blair is exposed to various risks of loss related to torts; theft, damage to and
destruction of assets; errors and omissions; injuries to employees; and natural disasters.
These risks are covered by the purchase of commercial insurance. The City assumes
liability for any deductibles and claims in excess of coverage limitations. Settled claims
from these risks have not exceeded commercial insurance coverage in any of the past
three fiscal years.
NOTE G. PENSION PLANS
The City has four pension plans covering substantially all of its employees. Employees
other than policemen, volunteer firefighters or rescue personnel are covered by a defined
contribution plan, either a 414(h) or 457(b) plan. Policemen are covered under a defined
contribution plan established by the statutes of the State of Nebraska. Firefighters or
rescue personnel are covered by the Blair Fire and Rescue Volunteers’ Service Award
Program. This plan is intended to comply with the Volunteer Emergency Responders
Recruitment and Retention Act as set forth in Nebraska Revised Statute and Internal
Revenue Code section 457(e)(11).
The 414(h) pension plan was established on April 1, 1996 and last restated on August 25,
2008 (effective January 1, 2008). All contributions from a minimum of 3% up to 6% of
gross wages in employee contributions and up to a 6% match of gross wage in
contributions from the City are invested with an investment manager.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 50 -
NOTE G. PENSION PLANS - CONTINUED
The employees must have accumulated six months of service, be at least age 21, and
work 40 hours per week to participate in the plan. Employees ar e 1 0 0 % v e s t e d i n
employer contributions after six years of service.
The plan is a single employer plan with the City maintaining fiduciary responsibility for
administration of the plan. Contributions for the year ended September 30, 2017, totaled
$188,259 which consisted of $94,129 contributed by employees and $94,130 contributed
by the City. Contributions are expected to remain relatively level from year to year.
The City may amend, modify, or terminate the 414(h) plan. Funds in the plan cannot be
diverted to any purposes other than for the exclusive benefit of the participants or their
beneficiaries or estates.
The 457(b) pension plan was established on July 1, 2008. The 457(b) plan allows
employees to contribute additional dollars to their pension above the 414(h) requirement
and match. The City will contribute a maximum match of 6% based on a one-to-one
match.
An employee can contribute voluntary pre-tax amounts up to the legal limits as
established by IRS code. The plan is a single employer plan with the City maintaining
fiduciary responsibility for it. Contributions for the year ended September 30, 2017,
totaled $141,996 which consisted of $111,559 contributed by employees and $25,866
contributed by the City. Contributions are expected to remain relatively level from year
to year. The City may amend, modify, or terminate the 457(b) plan. Funds in the plan
cannot be diverted to any purposes other than for the exclusive benefit of the participants
or their beneficiaries or estates.
The policemen are covered under a defined contribution plan established by the statues of
the State of Nebraska. Policemen terminating before retirement age receive payment for
their contributions to date of termination plus interest accrued and the vested portion of
the City’s contributions based on the statues of the State of Nebraska. The City has
fiduciary responsibility for the plan and it is a single employer plan only. Contributions
of $147,426 for the year ended September 30, 2017 were 12% of gross wages, which
complies with statutory requirements. The City contributed 7% of gross wages and the
policemen contributed 7%. The City expects contributions to remain relatively level
from year to year. The contributions are not actuarially determined. All qualifying
police payroll was covered in 2017.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 51 -
NOTE G. PENSION PLANS – CONTINUED
The police pension plan includes disability benefits. Upon establishing the incurrence of
a disability while in the line of duty, the disabled participant shall be eligible to receive
an immediate disability pension in the form of monthly payments equal to 50% of Final
Average Compensation for the period of disability. Currently, the City pays out $1,660
per month for disability compensation. The City has not requested an actuary to estimate
the present value of this liability.
The Blair Fire and Rescue Volunteers’ Service Award Program became effective October
1, 2008, and covers firefighters or rescue personnel. This plan complies with the
Volunteer Emergency Responders Recruitment and Retention Act as s e t f o r t h i n
Nebraska Revised Statute and Internal Revenue Code section 457(e)(11). To qualify as a
participant for any year of service, one must accumulate at least fifty points during such
year of service. For each year of service in which one qualifies as a participant, the City
will determine contribution amount and allocated to the account which shall not exceed
$3,000, and shall not be less than $100. The City’s contribution for the year ended
September 30, 2017, totaled $93,000.
NOTE H. RECEIVABLES
1. Accounts Receivable
Accounts receivable of the business-type activities consists of utilities accounts
receivable (100% of receivable). Accounts receivable of the governmental
activities consists of special assessments (58.1%), sales taxes (21.7%), grants
receivable (9.8%), property taxes (10%) and other (0.4%) receivables.
2. Notes Receivable
Notes receivable in the governmental-activities at September 30, 2017, consist of
Community Development Block Grant funds received by the City. These funds
were required to be loaned to a benefited business for eligible economic
development public infrastructure costs. The CDBG note receivable was
$400,000. If the benefited business meets certain specific job creation and job
maintenance requirements, as defined by the State of Nebraska Department of
Economic Development, the note can be forgiven. The benefited business’
progress towards the job creation and job maintenance requirements will be
examined on an ongoing basis. The City discounted the final $50,000 of the note
receivable, bringing the balance to zero for the year ended September 30, 2017.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 52 -
NOTE I. SPECIAL ASSESSMENTS RECEIVABLE
The City’s special assessments outstanding as of September 30, 2017, are composed of
special assessment principle of $1,001,437.
The delinquent special assessments at September 30, 2017 are 10.62% of those
outstanding. No special assessments have been pledged to specific debt, although special
assessments principle and interest is reserved for various purpose bonds payments only.
NOTE J. CONCENTRATION OF CREDIT RISK
All of the receivables of the City proprietary funds and special assessments in the debt
service fund are from the local Blair area, thereby creating a concentration of credit risk.
If the Blair area economy was depressed, this could have an adverse effect on the
collection of the outstanding accounts receivable. Cargill, Inc. is a major water and
sewer customer for the City. Cargill, Inc. represents 74.4% of water and sewer sales for
the year ended September 30, 2017. Although Cargill represents 85.5% of water sales,
t h e C i t y h a s a c o n t r a c t w i t h t h e c o m p a n y t h a t s e c u r e s a m i n i m u m monthly revenue
stream for payment of the water debt through June 2032, which minimizes the risk for
payment of water bonds.
NOTE K. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
During the year, the City adopted GASB Statement No. 74 Financial Reporting for
Postemployment Benefit Plans Other Than Pension Plans. This Statement improves the
usefulness of information about postemployment benefits other than pensions. The City
adopted GASB Statement No. 77 Tax Abatement Disclosures. This Statement requires
disclosures describing any tax abatements, the dollar amount of t a x e s a b a t e d , a n d
commitments made by the government as part of the tax abatement agreement. There
were no tax abatements requiring disclosures in the current year. The City adopted GASB
Statement No. 78 Pensions Provided through Certain Multiple-Employer Defined Benefit
Plans. The primary objective of this Statement is to address a practice issue regarding the
scope and applicability of Statement No. 68 Accounting and Financial Reporting for
Pensions. The City adopted GASB Statement No. 80 Blending Requirements for Certain
Component Units-an amendment of GASB Statement No. 14. This Statement clarifies the
financial statement presentation requirements for certain component units. The City also
adopted GASB Statement No. 82 Pension Issues-an amendment of GASB Statement No.
67, No. 68, and No. 73. This Statement addresses the presentation of payroll-related
measures, the selection of assumptions, and the classification of payments made by
employers to satisfy employee contribution requirements. The adoption of these
standards did not have significant impact on the financial statements.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2017
- 53 -
NOTE L. NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
In June 2015, GASB Issued Statement No. 75 Accounting and Financial Reporting for
Postemployment Benefits Other Than Pensions. This Statement improves accounting and
financial reporting for postemployment benefits other than pensions. In March 2016,
GASB issued Statement No. 81 Irrevocable Split-Interest Agreements. This Statement
improves accounting and financial reporting for irrevocable split-interest agreements by
providing recognition and measurement guidance for situations in which a government is
a beneficiary of the agreement. In March 2017, GASB issued Statement No. 85 Omnibus
2017. The objective of this Statement is to address practice issues that have been
identified during implementation and application of certain GASB Statements, such as
blending component units, goodwill, fair value measurement and application, and
postemployment benefits. In May 2017, GASB issued Statement No. 86 Certain Debt
Extinguishment Issues. The primary objective of this Statement is to improve consistency
in accounting and financial reporting for in-substance defeasance of debt by providing
guidance for transactions in which cash and other monetary assets acquired with the only
existing resources are placed in an irrevocable trust for the purpose of extinguishing debt.
These Statements are effective for the City’s year ending September 30, 2018.
NOTE M. NEGATIVE FUND BALANCE
The Street fund has a negative fund balance of $31,376. The governmental fund has a
negative unassigned fund balance as a result of overspending for specific purposes for
which amounts had been committed.
NOTE N. PRIOR PERIOD ADJUSTMENT
The beginning fund balance for the Debt Service fund has been adjusted by $120,000 to
properly report the Tax Anticipation Bond issued on December 21, 2015, and maturing
on December 15, 2025, on the governmental funds balance sheet. This was recorded as a
liability on the governmental fund balance sheet, however it should not have been since it
is long-term debt. The net impact is that the Street fund beginning and ending fund
balance was increased by $120,000 and the liabilities were decreased by the same
amount.
REQUIRED SUPPLEMENTAL INFORMATION
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Taxes 4,565,700$ 4,627,394$ (61,694)$
Charges for services 1,692,920 1,697,032 (4,112)
Interest income 8,610 6,535 2,075
Other revenues 512,400 449,324 63,076
Total revenues 6,779,630 6,780,285 (655)
EXPENDITURES
Administration 675,105 661,349 13,756
Police Department 2,223,526 1,897,357 326,169
Fire Department 161,930 168,032 (6,102)
Parks Department 802,268 558,322 243,946
Library 1,470,523 1,557,621 (87,098)
Swimming pool 75,550 78,212 (2,662)
Zoning 359,280 263,299 95,981
Mitigation 20,000 12,395 7,605
Insurance 1,015,668 900,287 115,381
Animal control 94,050 95,268 (1,218)
Donated funds 51,941 74,040 (22,099)
Rescue squad 146,000 223,168 (77,168)
Reuse 258,000 50,000 208,000
Economic development 645,000 150,000 495,000
Total expenditures 7,998,841 6,689,350 1,309,491
REVENUES OVER (UNDER) EXPENDITURES (1,219,211) 90,935 (1,310,146)
OTHER FINANCING SOURCES (USES)
Sale of assets 370,000 350,625 19,375
Bond proceeds 227,000 - 227,000
Operating transfers - in 2,156,600 2,901,768 (745,168)
Operating transfers - out (3,560,255) (4,543,214) 982,959
Total other financing sources (uses)(806,655) (1,290,821) 484,166
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (2,025,866) (1,199,886) (825,980)$
FUND BALANCE - BEGINNING OF YEAR 2,999,488 2,999,488
FUND BALANCE - END OF YEAR 973,622$ 1,799,602
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
For the year ended September 30, 2017
GENERAL FUND
See independent auditor's report
- 55 -
FUND BALANCE - END OF YEAR 1,799,602$
707,412
Accrual adjustment for receivables (16,846)
Accrual adjustments for payables (7,460)
2,482,708$
- 56 -
See independent auditor's report
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND - CONTINUED
For the year ended September 30, 2017
City of Blair, Nebraska
An explanation of the differences between budgetary inflows and outflows
and revenues and expenditures determined in accordance with generally
accepted accounting principles follows:
The budget fund balance at the beginning of the year is a based on
cash reserves rather than fund balance.
General Fund Balance
Accrual adjustments made because the City budgets for revenues and
expenditures on the cash basis, rather than on the modified accrual
basis.
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Taxes
Property tax 1,648,400$ 1,636,914$ 11,486$
Sales tax 2,420,000 2,491,919 (71,919)
Motor vehicle tax 155,600 185,390 (29,790)
Occupation and franchise tax 267,000 236,423 30,577
Other taxes 74,700 76,748 (2,048)
Total taxes 4,565,700 4,627,394 (61,694)
Charges for services
Business licenses and permits 217,450 218,686 (1,236)
Library 174,000 234,011 (60,011)
Equipment rental 66,500 78,506 (12,006)
Cemetery lots 18,000 13,500 4,500
Insurance 990,670 925,561 65,109
Grave openings 30,000 31,300 (1,300)
Towing 13,000 17,947 (4,947)
Rescue squad 155,000 146,682 8,318
Other fees and charges 6,300 6,982 (682)
Sales of fireworks 15,000 15,000 -
RV park 7,000 8,857 (1,857)
Total charges for services 1,692,920 1,697,032 (4,112)
INTEREST INCOME 8,610 6,535 2,075
OTHER REVENUES
State grants 197,000 201,842 (4,842)
Donations 9,600 91,616 (82,016)
Reimbursements 42,000 80,358 (38,358)
Other miscellaneous revenue 263,800 75,508 188,292
Total other revenues 512,400 449,324 63,076
Total revenues 6,779,630$ 6,780,285$ (655)$
City of Blair, Nebraska
GENERAL FUND REVENUES
For the year ended September 30, 2017
BUDGETARY COMPARISON SCHEDULE
- 57 -
See independent auditor's report
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Property taxes 214,650$ 197,483$ 17,167$
Other local taxes 27,100 31,557 (4,457)
Federal funds 1,050,000 1,002,765 47,235
State funds 1,058,503 1,039,703 18,800
Warrant income 540,000 117,579 422,421
Interest income 300 126 174
Other revenue 38,000 49,281 (11,281)
Total revenues 2,928,553 2,438,494 490,059
EXPENDITURES
Salaries 462,943 429,583 33,360
FICA 35,500 31,777 3,723
Employee insurance 187,705 150,250 37,455
Retirement 27,600 24,663 2,937
Legal 3,760 2,702 1,058
Auditing 8,200 8,524 (324)
Engineering 100,000 162,120 (62,120)
Office expense 11,700 6,232 5,468
Utilities 10,000 10,040 (40)
Telephone 2,400 2,017 383
Travel 6,500 9,948 (3,448)
Training 4,500 9,672 (5,172)
Insurance 24,900 26,472 (1,572)
Maintenance 98,600 79,099 19,501
Street lighting 140,000 167,177 (27,177)
County fees - 1,909 (1,909)
Car expense 5,000 3,975 1,025
Contract landscaping 65,000 55,159 9,841
Gas, diesel, and oil 26,000 19,475 6,525
Materials and supplies 181,800 204,080 (22,280)
Rental 30,000 4,738 25,262
Interest - 7,948 (7,948)
Debt Service 900,000 554,788 345,212
Capital outlay
Equipment 226,500 157,043 69,457
Land - (2,500) 2,500
Street improvements 3,136,000 2,880,463 255,537
Total expenditures 5,694,608 5,007,354 687,254
REVENUES OVER (UNDER) EXPENDITURES (2,766,055) (2,568,860) (197,195)
See independent auditor's report
- 58 -
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
STREET FUND
For the year ended September 30, 2017
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES OVER (UNDER) EXPENDITURES (2,766,055)$ (2,568,860)$ (197,195)$
OTHER FINANCING SOURCES
Sale of assets - - -
Insurance proceeds - 5,314 (5,314)
Operating transfers - in 3,071,500 3,837,946 (766,446)
Operating transfers - out - (1,363,339) 1,363,339
Total other financing sources 3,071,500 2,479,921 591,579
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER SOURCES 305,445 (88,939) 394,384$
FUND BALANCE BEGINNING OF YEAR 2,033 2,033
FUND BALANCE END OF YEAR 307,478$ (86,906)
(736,843)
Accrual adjustments for receivables 569,317
Accrual adjustments for payables 223,056
792,373
(31,376)$
See independent auditor's report
- 59 -
An explanation of the differences between budgetary inflows
and outflows and revenues and expenditures determined in
accordance with generally accepted accounting principles
follows:
The budget fund balance at the beginning of the year is a
based on cash reserves rather than fund balance.
Street Fund Balance
Accrual adjustments made because the City budgets for
revenues and expenditures on the cash basis, rather than on
the modified accrual basis.
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
STREET FUND - CONTINUED
For the year ended September 30, 2017
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Keno/lottery proceeds 110,000$ 96,716$ 13,284$
Other revenue 40 59 (19)
Total Revenue 110,040 96,775 13,265
EXPENDITURES
Community betterment project 45,000 - 45,000
Other expenses 26,100 21,626 4,474
Total expenditures 71,100 21,626 49,474
REVENUES OVER (UNDER) EXPENDITURES 38,940 75,149 (36,209)
OTHER FINANCING SOURCES (USES)
Operating transfers - out (207,100) (100,453) (106,647)
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (168,160) (25,304) (142,856)$
FUND BALANCE BEGINNING OF YEAR 184,254 184,254
FUND BALANCE END OF YEAR 16,094$ 158,950
The budget fund balance at the beginning of the year is based on cash
reserves rather than fund balance. 3,551
Accrual adjustment for receivables (501)
Accrual adjustments for payables -
Keno Fund Balance 162,000$
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
KENO FUND
For the year ended September 30, 2017
- 60 -
See independent auditor's report
An explanation of the differences between budgetary inflows and outflows and
revenues and expenditures determined in accordance with generally accepted
accounting principles follows:
SUPPLEMENTAL INFORMATION
ASSETS
Restricted cash and cash equivalents 491,043$
Total assets 491,043$
FUND BALANCES
Restricted
Economic development 491,043$
Total fund balances 491,043$
- 62 -
City of Blair, Nebraska
INDIVIDUAL FUND BALANCE SHEET
ECONOMIC DEVELOPMENT FUND, A FUND WITHIN THE GENERAL FUND
September 30, 2017
See independent auditor's report
REVENUES
Interest income 224$
Other revenues 9,750
Total revenues 9,974
EXPENDITURES
Administration 150,000
Total expenditures 150,000
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (140,026)
OTHER FINANCING SOURCES (USES)
Operating transfers - in 250,000
Total other financing sources 250,000
NET CHANGE IN FUND BALANCES 109,974
FUND BALANCES, BEGINNING OF YEAR 381,069
FUND BALANCES, END OF YEAR 491,043$
- 63 -
City of Blair, Nebraska
INDIVIDUAL FUND STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCE
ECONOMIC DEVELOPMENT FUND, A FUND WITHIN THE GENERAL FUND
For the year ended September 30, 2017
See independent auditor's report
Ec
o
n
o
m
i
c
T
o
t
a
l
Ge
n
e
r
a
l
R
e
s
c
u
e
S
a
l
e
s
T
a
x
I
n
s
u
r
a
n
c
e
H
o
t
e
l
/
M
o
t
e
l
C
D
B
G
D
o
n
a
t
i
o
n
s
C
a
p
i
t
al
O
u
t
l
a
y
R
e
u
s
e
D
e
v
e
l
o
p
m
e
n
t
G
e
n
e
r
a
l
Fu
n
d
S
q
u
a
d
F
u
n
d
F
u
n
d
F
u
n
d
T
a
x
F
u
n
d
F
u
n
d
F
u
n
d
R
e
s
e
r
v
e
F
u
n
d
F
u
n
d
F
u
n
d
F
u
n
d
AS
S
E
T
S
Ca
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
5
1
9
,
3
7
6
$
-
$
8
8
7
,
4
8
3
$
1
0
8
,
5
3
9
$
1
4
,
8
4
2
$
1
0
0
$
-
$
-
$
-
$
-
$
1
,
5
3
0
,
3
4
0
$
Re
c
e
i
v
a
b
l
e
s
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
-
-
-
-
-
-
-
-
-
-
Sa
l
e
s
t
a
x
-
-
3
7
3
,
9
8
9
-
-
-
-
-
-
-
3
7
3
,
9
8
9
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
9
,
3
9
3
-
-
-
-
-
-
-
-
-
9
,
3
9
3
Ot
h
e
r
-
-
-
-
4
,
2
6
3
-
-
-
-
-
4
,
2
6
3
Du
e
f
r
o
m
C
o
u
n
t
y
T
r
e
a
s
u
r
e
r
1
4
9
,
9
9
0
-
-
-
-
-
-
-
-
-
1
4
9
,
9
9
0
Re
s
t
r
i
c
t
e
d
c
a
s
h
a
n
d
c
a
s
h
e
q
u
i
v
a
l
e
n
t
s
Ca
s
h
-
2
2
,
6
8
2
-
-
-
-
6
1
,
6
8
1
-
6
4
9
1
,
0
4
3
5
7
5
,
4
1
2
Ce
r
t
i
f
i
c
a
t
e
s
o
f
d
e
p
o
s
i
t
-
1
5
0
,
0
0
0
-
-
-
-
-
-
-
-
1
5
0
,
0
0
0
To
t
a
l
a
s
s
e
t
s
6
7
8
,
7
5
9
$
1
7
2
,
6
8
2
$
1
,
2
6
1
,
4
7
2
$
1
0
8
,
5
3
9
$
1
9
,
1
0
5
$
1
0
0
$
6
1
,
6
8
1
$
-
$
6
$
4
9
1
,
0
4
3
$
2
,
7
9
3
,
3
8
7
$
LI
A
B
I
L
I
T
I
E
S
Ac
c
o
u
n
t
s
p
a
y
a
b
l
e
9
7
,
1
3
1
$
-
$
-
$
-
$
-
$
-
$
2
,
2
2
2
$
-
$
-
$
-
$
9
9
,
3
5
3
$
Ac
c
r
u
e
d
e
x
p
e
n
s
e
s
3
7
,
3
9
9
-
-
-
-
-
-
-
-
-
3
7
,
3
9
9
De
p
o
s
i
t
s
p
a
y
a
b
l
e
4
9
,
5
3
4
-
-
-
-
-
-
-
-
-
4
9
,
5
3
4
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
1
8
4
,
0
6
4
-
-
-
-
-
2
,
2
2
2
-
-
-
1
8
6
,
2
8
6
DE
F
E
R
R
E
D
I
N
F
L
O
W
S
O
F
R
E
S
O
U
R
C
E
S
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
-
-
-
-
-
-
-
-
-
-
-
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
9
,
3
9
3
-
-
-
-
-
-
-
-
-
9
,
3
9
3
Pr
o
p
e
r
t
y
t
a
x
e
s
1
1
5
,
0
0
0
-
-
-
-
-
-
-
-
-
1
1
5
,
0
0
0
To
t
a
l
d
e
f
e
r
r
e
d
i
n
f
l
o
w
o
f
r
e
s
o
u
r
c
e
s
1
2
4
,
3
9
3
-
-
-
-
-
-
-
-
-
1
2
4
,
3
9
3
FU
N
D
B
A
L
A
N
C
E
S
Re
s
t
r
i
c
t
e
d
Do
n
a
t
e
d
f
u
n
d
s
-
-
-
-
-
-
5
9
,
4
5
9
-
-
-
5
9
,
4
5
9
Ec
o
n
o
m
i
c
d
e
v
e
l
o
p
m
e
n
t
-
-
-
-
-
-
-
-
-
4
9
1
,
0
4
3
4
9
1
,
0
4
3
Re
u
s
e
f
u
n
d
s
-
-
-
-
-
-
-
-
6
-
6
Re
s
c
u
e
s
q
u
a
d
-
1
7
2
,
6
8
2
-
-
-
-
-
-
-
-
1
7
2
,
6
8
2
As
s
i
g
n
e
d
En
c
u
m
b
r
a
n
c
e
s
9
7
,
1
3
1
-
-
-
-
-
-
-
-
-
9
7
,
1
3
1
Un
a
s
s
i
g
n
e
d
2
7
3
,
1
7
1
-
1
,
2
6
1
,
4
7
2
1
0
8
,
5
3
9
1
9
,
1
0
5
1
0
0
-
-
-
-
1
,
6
6
2
,
3
8
7
To
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
3
7
0
,
3
0
2
1
7
2
,
6
8
2
1
,
2
6
1
,
4
7
2
1
0
8
,
5
3
9
1
9
,
1
0
5
1
0
0
5
9
,
4
5
9
-
6
4
9
1
,
0
4
3
2
,
4
8
2
,
7
0
8
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
a
n
d
f
u
n
d
b
a
l
a
n
c
e
s
6
7
8
,
7
5
9
$
1
7
2
,
6
8
2
$
1
,
2
6
1
,
4
7
2
$
1
0
8
,
5
3
9
$
1
9
,
1
0
5
$
1
0
0
$
6
1
,
6
8
1
$
-
$
6
$
4
9
1
,
0
4
3
$
2
,
7
9
3
,
3
8
7
$
-
6
4
-
Cit
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
CO
M
B
I
N
I
N
G
B
A
L
A
N
C
E
S
H
E
E
T
GE
N
E
R
A
L
F
U
N
D
Se
p
t
e
m
b
e
r
3
0
,
2
0
1
7
Se
e
i
n
d
e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
Economic Total
Ge
n
e
r
a
l
R
e
s
c
u
e
S
a
l
e
s
T
a
x
I
n
s
u
r
a
n
c
e
H
o
t
e
l
/
M
o
t
e
l
C
D
B
G
D
o
n
a
t
i
o
n
s
C
a
p
i
t
al
O
u
t
l
a
y
R
e
u
s
e
D
e
v
e
l
o
p
m
e
n
t
G
e
n
e
r
a
l
Fu
n
d
S
q
u
a
d
F
u
n
d
F
u
n
d
F
u
n
d
T
a
x
F
u
n
d
F
u
n
d
F
u
n
d
R
e
s
e
r
v
e
F
u
n
d
F
u
n
d
F
u
n
d
F
u
n
d
RE
V
E
N
U
E
S
Ta
x
e
s
2
,
0
8
4
,
9
4
1
$
-
$
2
,
4
7
7
,
6
8
0
$
-
$
4
7
,
9
2
7
$
-
$
-
$
-
$
-
$
-
$ 4,610,548 $
Ch
a
r
g
e
s
f
o
r
s
e
r
v
i
c
e
s
6
2
4
,
7
8
9
1
4
6
,
6
8
2
-
9
2
5
,
5
6
1
-
-
-
-
-
-
1,697,032
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
2
0
3
,
3
9
0
-
-
-
-
-
5
,
7
0
3
-
-
-
209,093
In
t
e
r
e
s
t
i
n
c
o
m
e
3
,
9
5
1
6
4
7
1
,
5
4
9
8
4
1
5
-
6
5
-
-
2
2
4
6,535
Ot
h
e
r
r
e
v
e
n
u
e
s
9
4
,
8
8
4
1
0
,
8
5
4
-
-
-
-
6
4
,
4
4
3
-
5
0
,
0
0
0
9
,
7
5
0
2
2
9
,
9
3
1
To
t
a
l
r
e
v
e
n
u
e
s
3
,
0
1
1
,
9
5
5
1
5
8
,
1
8
3
2
,
4
7
9
,
2
2
9
9
2
5
,
6
4
5
4
7
,
9
4
2
-
7
0
,
2
1
1
-
5
0
,
0
0
0
9
,
9
7
4
6,753,139
EX
P
E
N
D
I
T
U
R
E
S
Ad
m
i
n
i
s
t
r
a
t
i
o
n
4
7
6
,
6
5
3
-
1
8
7
,
0
6
4
9
0
0
,
2
8
7
4
,
3
8
0
-
-
-
5
0
,
0
0
0
1
5
0
,
0
0
0
1,768,384
Po
l
i
c
e
D
e
p
a
r
t
m
e
n
t
1
,
8
9
7
,
7
0
9
-
-
-
-
-
-
-
-
-
1,897,709
Fi
r
e
D
e
p
a
r
t
m
e
n
t
1
6
8
,
0
3
2
1
6
0
,
0
0
5
-
-
-
-
-
-
-
-
328,037
Pa
r
k
s
D
e
p
a
r
t
m
e
n
t
5
5
1
,
1
2
7
-
-
-
-
-
-
-
-
-
551,127
Li
b
r
a
r
y
1
,
5
5
7
,
6
2
8
-
-
-
-
-
-
-
-
-
1,557,628
Sw
i
m
m
i
n
g
p
o
o
l
7
8
,
2
1
2
-
-
-
-
-
-
-
-
-
78,212
Zo
n
i
n
g
2
6
3
,
6
1
9
-
-
-
-
-
-
-
-
-
263,619
Ca
p
i
t
a
l
o
u
t
l
a
y
7
,
2
0
0
6
3
,
1
6
3
-
-
-
-
3
5
,
9
4
4
-
-
-
106,307
An
i
m
a
l
c
o
n
t
r
o
l
9
5
,
2
9
6
-
-
-
-
-
-
-
-
-
95,296
Mi
t
i
g
a
t
i
o
n
1
2
,
3
9
5
-
-
-
-
-
-
-
-
-
12,395
Do
n
a
t
e
d
f
u
n
d
s
-
-
-
-
-
-
3
8
,
0
9
6
-
-
-
38,096
To
t
a
l
e
x
p
e
n
d
i
t
u
r
e
s
5
,
1
0
7
,
8
7
1
2
2
3
,
1
6
8
1
8
7
,
0
6
4
9
0
0
,
2
8
7
4
,
3
8
0
-
7
4
,
0
4
0
-
5
0
,
0
0
0
1
5
0
,
0
0
0
6,696,810
EX
C
E
S
S
(
D
E
F
I
C
I
E
N
C
Y
)
O
F
R
E
V
E
N
U
E
S
OV
E
R
E
X
P
E
N
D
I
T
U
R
E
S
(
2
,
0
9
5
,
9
1
6
)
(
6
4
,
9
8
5
)
2
,
2
9
2
,
1
6
5
2
5
,
3
5
8
4
3
,
5
6
2
-
(
3
,
8
2
9
)
-
-
(
1
4
0
,
0
2
6
)
56,329
OT
H
E
R
F
I
N
A
N
C
I
N
G
S
O
U
R
C
E
S
(
U
S
E
S
)
Sa
l
e
o
f
a
s
s
e
t
s
3
5
0
,
6
2
5
-
-
-
-
-
-
-
-
-
350,625
In
s
u
r
a
n
c
e
p
r
o
c
e
e
d
s
-
-
-
-
-
-
-
-
-
-
-
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
i
n
1
,
6
4
9
,
0
0
3
-
1
,
0
0
2
,
7
6
5
-
-
-
1
0
,
3
0
0
-
-
2
5
0
,
0
0
0
2,912,068
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
o
u
t
-
-
(
4
,
4
7
6
,
2
1
4
)
(
1
0
,
0
0
0
)
(
4
0
,
0
0
0
)
-
-
(
1
7
,
0
0
0
)
-
-
(4,543,214)
To
t
a
l
o
t
h
e
r
f
i
n
a
n
c
i
n
g
s
o
u
r
c
e
s
1
,
9
9
9
,
6
2
8
-
(
3
,
4
7
3
,
4
4
9
)
(
1
0
,
0
0
0
)
(
4
0
,
0
0
0
)
-
1
0
,
3
0
0
(
1
7
,
0
0
0
)
-
2
5
0
,
0
0
0
(1,280,521)
NE
T
C
H
A
N
G
E
I
N
F
U
N
D
B
A
L
A
N
C
E
S
(
9
6
,
2
8
8
)
(
6
4
,
9
8
5
)
(
1
,
1
8
1
,
2
8
4
)
1
5
,
3
5
8
3
,
5
6
2
-
6
,
4
7
1
(
1
7
,
0
0
0
)
-
1
0
9
,
9
7
4
(1,224,192)
FU
N
D
B
A
L
A
N
C
E
S
,
B
E
G
I
N
N
I
N
G
O
F
Y
E
A
R
4
6
6
,
5
9
0
2
3
7
,
6
6
7
2
,
4
4
2
,
7
5
6
9
3
,
1
8
1
1
5
,
5
4
3
1
0
0
5
2
,
9
8
8
1
7
,
0
0
0
6
3
8
1
,
0
6
9
3,706,900
FU
N
D
B
A
L
A
N
C
E
S
,
E
N
D
O
F
Y
E
A
R
3
7
0
,
3
0
2
$
1
7
2
,
6
8
2
$
1
,
2
6
1
,
4
7
2
$
1
0
8
,
5
3
9
$
1
9
,
1
0
5
$
1
0
0
$
5
9
,
4
5
9
$
-
$
6
$
4
9
1
,
0
4
3
$ 2,482,708 $
- 6
5
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
C
O
M
B
I
N
I
N
G
S
T
A
T
E
M
E
N
T
O
F
R
E
V
E
N
U
E
S
,
E
X
P
E
N
D
I
T
U
R
E
S
,
A
N
D
C
H
A
N
G
E
S
I
N
FU
N
D
B
A
L
A
N
C
E
-
G
E
N
E
R
A
L
F
U
N
D
Fo
r
t
h
e
y
e
a
r
e
n
d
e
d
S
e
p
t
e
m
b
e
r
3
0
,
2
0
1
7
Se
e
i
n
d
e
p
e
n
d
e
n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
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
To the City Council
City of Blair, Nebraska
We have audited, in accordance with the auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States, the financial
statements of the governmental activities, the business-type activities, and each major fund of the
City of Blair, Nebraska, as of and for the year ended September 30, 2017, and the related notes to
the financial statements, which collectively comprise the City of Blair, Nebraska’s basic
financial statements, and have issued our report thereon dated March 9, 2018.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered City of Blair,
Nebraska’s internal controls over financial reporting to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City of
Blair, Nebraska’s internal controls over financial reporting. Accordingly, we do not express an
opinion on the effectiveness of City of Blair, Nebraska’s internal controls.
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 i s a
deficiency, or a combination of deficiencies, in internal control, such that there is a reasonable
possibility that a material misstatement of the entity’s financial statements will not be prevented,
or detected and corrected on a timely basis. A significant deficiency is a deficiency, or a
combination of deficiencies, in internal control that is less severe than a material weakness, yet
important enough to merit attention by those charged with governance.
www.hayes-cpa.comWestroads Pointe | 1015 N. 98th St., Suite 200 | Omaha, NE 68114 | T 402-390-2480
134 W. Broadway | Council Bluffs, IA 51503 | T 712-322-5503
- 67 -
Our consideration of internal controls was for the limited purpose described in the first paragraph
of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or, significant deficiencies. Given these limitations, during our audit we did
not identify any deficiencies in internal control that we consider to be material weaknesses.
However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Blair, Nebraska’s financial
statements are free from material misstatement, we performed tests of its compliance with certain
provisions of laws, regulations, contracts, and grant agreements, noncompliance with which
could have a direct and material effect on the determination of financial statement amounts.
However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no
instances of material noncompliance or other matters that are required to be reported under
Government Auditing Standards.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control over
financial reporting and compliance and the results of that testing, and not to provide an opinion
on the effectiveness of the entity’s internal control over financial reporting or on compliance.
This report is an integral part of an audit performed in accordance with Government Auditing
Standards in considering the entity’s internal control over financial reporting and compliance.
Accordingly, this communication is not suitable for any other purpose.
Hayes & Associates, L.L.C.
Omaha, Nebraska
March 9, 2018
City of Blair, Nebraska
SCHEDULE OF FINDINGS AND RESPONSES
For the year ended September 30, 2017
- 68 -
I. SUMMARY OF AUDIT RESULTS
Financial Statements
T y p e o f a u d i t o r s ’ r e p o r t s i s s u e d : Unmodified
Internal controls over financial reporting:
M a t e r i a l w e a k n e s s e s i d e n t i f i e d : No
Significant deficiencies identified: No
Noncompliance material to financial statements noted: No
II. FINDINGS - FINANCIAL STATEMENTS
None noted
City of Blair, Nebraska
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended September 30, 2017
- 69 -
II. FINDINGS - FINANCIAL STATEMENTS
None noted
III. FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAMS
None noted