FY2018 Audit Report City
City of Blair, Nebraska
FINANCIAL STATEMENTS
INDEPENDENT AUDITOR’S REPORT
For the year ended September 30, 2018
TABLE OF CONTENTS
Page
INDEPENDENT AUDITOR’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 – Budgetary basis 55 - 56
Budgetary comparison schedule - General fund revenues – Budgetary basis 57
TABLE OF CONTENTS – CONTINUED
Page
REQUIRED SUPPLEMENTAL INFORMATION - CONTINUED
Budgetary comparison schedule - Street fund – Budgetary basis 58 - 59
Budgetary comparison schedule - Keno fund – Budgetary basis 60
Notes to required supplementary information budgetary reporting 61
SUPPLEMENTAL INFORMATION
Individual fund balance sheet – Economic development fund, a fund
within the General fund 63
Individual fund statement of revenues, expenditures, and changes in
Fund balance – Economic development fund, a fund within the General fund 64
Combining balance sheet – General fund 65
Combining statement of revenues, expenditures, and changes in 66
Fund balance – general fund
Schedule of expenditures of federal awards 67
Notes to schedule of expenditures of federal awards 68
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 69 - 70
SCHEDULE OF FINDINGS AND RESPONSES 71
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS 72
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, 2018, and the related notes to the financial statements, which
collectively comprise the City’s basic financial statements as listed in the table of contents.
Management’s Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements
in accordance with accounting principles generally accepted in the United States of America; this
includes the design, implementation, and maintenance of internal 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 West Broadway | Council Bluffs, IA 51503 | T 712-322-5503
An Independent Member of CPA Associates International
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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, 2018, and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended
in accordance with accounting principles generally accepted in the United States of America.
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 - 61 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, Nebraska’s basic financial statements. The individual
non-major fund financial statements, combining fund financial statements, and schedule of
expenditures of federal awards 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, combining fund financial statements, and
schedule of expenditures of federal awards are the responsibility of management and were
derived from and relate directly to the underlying accounting and other records used to prepare
the basic financial statements.
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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
February 15, 2019, 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
February 15, 2019
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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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, 2018. 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, 2018 by $50.0 million (net position). Of this amount, $6.7 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 $879 thousand for the year ended
September 30, 2018. This was the result of several projects being completed with grants
and sales tax revenue.
As of September 30, 2018, the City of Blair’s governmental funds reported combined
ending fund balances of $4.4 million, an increase of $477,627 in comparison with the
prior fiscal year.
The fund balances for the General Fund increased $345,038 for the fiscal year ended
September 30, 2018. The Debt Service Fund increased $309,075 primarily due to
collection of delinquent assessments and transfers of sales tax and the Street Fund
increased $187,746 during the same period primarily due to increases in
intergovernmental funding, sales, and property tax.
The City’s total debt decreased by $258,000 during the current fiscal year. The City had
increase in new debt of $2.3 million during the current year, which was tied to the long-
term capital lease for the new library and continued to make debt payments this year
totaling $2.5 million.
OVERVIEW OF FINANCIAL STATEMENTS
This 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, 2018
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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 decreases 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, 2018
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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 other governmental funds, all except the
other governmental funds are reported as major funds. The other governmental funds
include 3 TIF funds, which are then shown in detail as a supplementary schedule.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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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, 2018
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THE CITY AS A WHOLE - Government-Wide Financial Analysis
The City’s combined net position was $50.0 million as of September 30, 2018. Analyzing the net
position and net expenses of governmental and business-type activities separately, the
governmental activities net position was $23.9 million, and the business type activities net
position were $26.1 million. This analysis focuses on the net position (table 1) and changes in
general revenues (table 2) and significant expenses of the City’s governmental and business-type
activities. The comparative government-wide results are provided in the tables for additional
analysis.
By far the largest portion of the City’s net position (86%) reflects its restricted and capital assets
(e.g., donations, community betterment, debt service, and capital projects).
TABLE 1 (amounts are expressed in thousands)
2018 2017 2018 2017 2018 2017
ASSETS
Current and other assets 6,101$ 5,794 $ 7,700 $ 7,563 $ 13,801 $ 13,357 $
Capital assets 25,095 23,109 46,504 47,788 71,599 70,897
Total assets 31,196 28,903 54,204 55,351 85,400 84,254
LIABILITIES
Long-term debt 5,741 4,735 25,231 26,882 30,972 31,617
Other liabilities 1,591 709 2,898 2,868 4,489 3,577
Total liabilities 7,332 5,444 28,129 29,750 35,461 35,194
DEFERRED INFLOWS 46 46 - - 46 46
NET POSITION
Net investment in
capital assets 18,675 18,374 19,622 18,963 38,297 37,337
Restricted 2,527 2,243 2,376 2,376 4,903 4,619
Unrestricted (deficit)2,616 2,796 4,077 4,262 6,693 7,058
Total net position 23,818$ 23,413 $ 26,075 $ 25,601 $ 49,893 $ 49,014 $
Governmental Activities Business-type Activities Total Primary Government
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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Governmental activities: Governmental activities decreased the City’s net position by $251
thousand before transfers.
Key elements of this decrease are as follows:
The revenue in governmental funding activities decreased as did expenses. General fund
activities had a loss of $251,000 before transfers. The General Fund was able to generate
a positive increase after transfers, sales tax, fees charged, operating grants, capital grants,
and contributions, which was generally a positive increase.
The comparative financial analysis is provided for additional information. The City’s
governmental revenues decreased when compared to the prior year by 30% or $2.24
million. There were several reasons for this change including decreases in charges for
services, less contributions and less grants in library and streets. The assessed value of the
property of the City increased by $6 million or 1% as compared to the prior year while the
City property tax rate of $0.358163 per $100 assessment did not change.
Business-type Activities
Revenues of the City’s business-type activities were $9.1 million for the fiscal year ending
September 30, 2018. Expenses for the City’s business-type activities were $8.0 million for
the year, resulting in a net asset increase of $1.1 million before transfers. The net increase
was the result of solid water revenue and reduced operating costs through bidding of
supplies and chemicals in larger quantities.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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TABLE 2 (amounts are expressed in thousands)
2018 2017 2018 2017 2018 2017
REVENUES
Program revenues
Charges for services 645$ 868 $ 8,771 $ 8,771 $ 9,416 $ 9,639 $
Operating grants and
contributions 60 209 - - 60 209
Capital grants and
contributions 63 1,363 - - 63 1,363
General revenues
Taxes 6,094 5,939 - - 6,094 5,939
Intergovernmental - - - - - -
Interest income 16 8 28 28 44 36
Special assessment 85 598 - - - 598
Gains 24 246 - - - 246
Other 210 209 68 68 278 277
Total revenues 7,197 9,440 8,867 8,867 16,064 18,307
EXPENSES
Administration 1,065 912 - - 1,065 912
Police 1,874 1,970 - - 1,874 1,970
Fire 203 256 - - 203 256
Parks 675 654 - - 675 654
Library 756 638 - - 756 638
Swimming pool 83 117 - - 83 117
Zoning 339 265 - - 339 265
Animal control 116 113 - - 116 113
Donated fund 36 38 - - 36 38
Mitigation - 12 - - - 12
Streets 2,031 4,364 - - 2,031 4,364
Keno 19 22 - - 19 22
Community betterment - - - - - -
Rescue squad 124 191 - - 124 191
Bond issuance costs - 36 - - - 36
Interest expense 127 134 - - 127 134
Water - - 6,651 6,651 6,651 6,651
Sewer - - 1,297 1,297 1,297 1,297
Total expenses 7,448 9,722 7,948 7,948 15,396 17,670
CHANGE IN NET POSITION
BEFORE TRANSFERS (251) (282) 919 919 668 637
TRANSFERS 656 737 (656) (737) - -
CHANGE IN NET POSITION 405 455 263 182 668 637
NET POSITION, BEGINNING 23,413 22,958 25,601 25,419 49,014 48,377
NET POSITION, END OF YEAR 23,818$ 23,413 $ 25,864 $ 25,601 $ 49,682 $ 49,014 $
Governmental Activities Business-type Activities Total Primary Government
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year 2018, the City had $114.7 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 $4.0
million or 3.7% 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 2018 was $480,000.
TABLE 3 (amounts are expressed in thousands)
Balance Balance
September 30,Decreases / September 30,
2017 Increases Recharacterization 2018
GOVERNMENTAL ACTIVITIES
Land 1,227$ 23$ (110)$ 1,140$
Construction in progress 101 1,027 (698) 430
Infrastructure 18,340 480 - 18,820
Buildings 8,656 2,508 - 11,164
Equipment 7,094 204 (66) 7,232
Total governmental 35,418 4,242 (874) 38,786
BUSINESS-TYPE ACTIVITIES
Water assets 64,428 2,160 (1,652) 64,936
Sewer assets 10,826 232 (38) 11,020
Total business-type 75,254 2,392 (1,690) 75,956
Totals 110,672$ 6,634$ (2,564)$ 114,742$
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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Debt
At year-end, the City had $4.2 million in General Obligation Bonds outstanding as compared to
$4.7 million at the end of the prior fiscal year, resulting in a decrease of $495,000 shown in Table
4. The Water Revenue Bonds outstanding decreased by $1.8 million. The City has a 25 year take
or pay contract with Cargill to secure all debt incurred for expanding the City’s water system for
the ability to meet Cargill’s water needs. The expanded plant has a capacity of 20 MGD, with
15.5 MGD being committed to Cargill under the amended 25 year take or pay contract.
TABLE 4 (amounts are expressed in thousands)
Balance Balance
September 30,September 30,
2017 Additions Reductions 2018
General Obligation Bonds 4,735$ -$ (495)$ 4,240$
Capital lease - 2,300 (120) 2,180
Water Revenue Bonds 26,311 - (1,818) 24,493
Sewer Revenue Bonds 2,514 - (125) 2,389
Totals 33,560$ 2,300$ (2,558)$ 33,302$
Description
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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THE CITY’S FUND
At the close of the City’s fiscal year on September 30, 2018, the governmental funds of the City
reported a combined fund balance of $4.4 million.
General Fund Budgetary Highlights
General Fund had revenues over expenditures of $510,212 with a net increase of $345,038, after
transfers in and out, sales of assets, and insurance proceeds. This was primarily accomplished
from the fact expenses were below budgeted projections and tax receipts were stable against
projections.
Debt Service had expenditures of $178,225 more than revenues. When combined with the sale of
assets from previously foreclosed properties and transfers in, the Debt ending balance increased
by $309,075.
Street Fund had an operating loss of $425,085. This loss was offset with net transfers in of
$587,724 from Sales Tax, and Keno Funds, the sale of assets of $19,500, and insurance proceeds
of $6,533 which resulted in a net increase of $188,672.
Keno and the other governmental funds had no major deviations in revenues or expenditures.
Water and Sewer revenues continue to be stable. Water and Sewer both finished the year with a
ratio of operating income before depreciation, divided by Debt Service greater than 1.25 as
required by the covenants in the authorizing Ordinances
All other funds operated without any significant changes to the funds.
ECONOMIC FACTORS AND NEXT YEAR’S BUDGETS AND RATES
Current economic conditions are positive with the continued interest by business and industry
looking to locate in the Blair area. 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 2018 was $528,436,821, up 1.0% from the
previous fiscal year. For Fiscal year 2019 the City’s valuation increased to $552,017,639, an
increase of approximately 4.6%. The City’s property tax levy continues to be stable. For the fiscal
years 2017 and 2018 the City’s property tax levy was 35.8163 cents per 100 dollars of actual
valuation. Fiscal year 2019 had a slight increase to 35.9572 cents per hundred.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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The City continues to see a steady interest in new development. A positive from the housing task
force, created by the City in fiscal year 2017 to deal with the housing shortage, was the
development of three areas for new housing subdivisions in 2018. One area is the Northview
subdivision which will have 15 lots initially and 55 lots at full build out. The second and third
areas are on part of the land that was formerly part of Dana College. The City is working with the
owner of the former Dana College property, Angels Share, and a private developer to develop lots
for workforce housing. The plans call for 43 single family lots and 7 two family attached
townhomes for a total of 57 housing units.
To assist in helping build spec workforce housing, the City worked with the Metropolitan Area
Planning Agency’s (MAPA) non-profit to successfully secure grant funds from private sources,
Nebraska Department of Economic Development (DED), City of Blair and Nebraska Investment
Finance Authority (NIFA) to put together a low interest revolving loan fund. A total of $975,000
is available through MAPA’s non-profit fund to assist a builder to build spec houses in the price
range DED considers as “workforce” housing. Workforce housing is defined as housing with a
sale price of less than $275,000. The City is hoping this will result in construction of up to 12 or
more new spec homes annually to help boost housing for an expending work force.
The October 2017 closing and decommissioning of the OPPD Nuclear Plant located
approximately two miles south of Blair continues to have 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-
year period. The City anticipates the loss of jobs at the plant will be absorbed through expansion
of current businesses/industries and new companies looking to locate in the Blair area.
Local tax receipts for fiscal year 2018 remained stable with sales taxes receipts continuing to meet
or exceed budgeted projections. The City anticipates tax revenue will continue to be stable barring
any unforeseen down turn in the National Economy.
The water and wastewater funds continue to be stable. The Papio NRD added the Lakeland water
company and the suppling of water to approximately half of the City of Fort Calhoun area to the
NRD’s water system demand which added another 300 to 400 connections to the system supplied
by Blair.
City of Blair, Nebraska
MANAGEMENT’S DISCUSSION AND ANALYSIS
For the year ended September 30, 2018
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The City’s water system has received the renewal of the City’s NPDES permit. The permit for
discharging back to the Missouri River has been renewed and will result in DEQ issuing an
administrative order calling for action by the City to reduce the effect of surface discoloration to
the Missouri River due to lime discharge. The order will call for a study of best practices to be
completed and a plan developed over the next 3 to 5 years. The City anticipates that the ultimate
solution will result in capital construction of less the $3 million at this time and have minimal
effect on the ability to finance future plant expansions for economic development and community
growth.
CONTACTING THE CITY’S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors and
creditors with a general overview of the City’s finances and to show the City’s accountability for
the money it receives. If you have questions about this report or need additional financial
information, contact the City of Blair, 218 S. 16th Street, Blair, NE 68008.
Governmental Business-type
Activities Activities Total
ASSETS
Current Assets
Cash and cash equivalents 2,145,339$ 3,816,815$ 5,962,154$
Accounts receivable 8,788 1,483,254 1,492,042
Accrued interest receivable 1,831 9,670 11,501
Sales tax receivable 414,184 - 414,184
Property tax receivable 161,205 - 161,205
Prepaid expense 21,696 14,632 36,328
Special assessments receivable 822,626 - 822,626
Total Current Assets 3,575,669 5,324,371 8,900,040
Noncurrent Assets
Restricted cash and cash equivalents 2,524,960 2,375,694 4,900,654
Capital assets
Non-depreciable
Land 1,139,790 423,783 1,563,573
Construction in progress 430,231 279,184 709,415
Depreciable
Infrastructure 18,819,622 25,038,417 43,858,039
Buildings 11,163,764 46,310,682 57,474,446
Equipment 7,232,493 3,904,197 11,136,690
Accumulated depreciation (13,690,871) (29,451,942) (43,142,813)
Net Capital Assets 25,095,029 46,504,321 71,599,350
Total Noncurrent Assets 27,619,989 48,880,015 76,500,004
Total Assets 31,195,658$ 54,204,386$ 85,400,044$
LIABILITIES
Current Liabilities
Accounts payable 173,351$ 473,462$ 646,813$
Accrued expenses 277,742 225,523 503,265
Accrued interest 19,757 288,577 308,334
Deposits payable 49,731 1,700 51,431
Registered warants 391,407 257,897 649,304
Bonds payable - due within one year 614,432 1,650,593 2,265,025
Total Current Liabilities 1,526,420 2,897,752 4,424,172
Noncurrent Liabilities
Bonds payable - due in more than one year 5,805,503 25,231,285 31,036,788
Total Noncurrent Liabilities 5,805,503 25,231,285 31,036,788
Total Liabilities 7,331,923$ 28,129,037$ 35,460,960$
City of Blair, Nebraska
STATEMENT OF NET POSITION
September 30, 2018
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 18,675,094 19,622,443 38,297,537
Restricted:
Debt service 1,666,607 2,375,694 4,042,301
Donated projects 53,477 - 53,477
Economic development 438,699 - 438,699
Library 12,500 - 12,500
Rescue squad 243,044 - 243,044
Community betterment 112,198 - 112,198
Unrestricted 2,616,116 4,077,212 6,693,328
Total net position 23,817,735 26,075,349 49,893,084
Total liabilities, deferred inflows, and net position 31,195,658$ 54,204,386$ 85,400,044$
- 19 -
See accompanying notes and independent auditor's report
City of Blair, Nebraska
STATEMENT OF NET POSITION
GOVERNMENT - WIDE
September 30, 2018
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18
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s
18
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11
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204,279
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b
r
a
n
c
e
s
91
,
1
3
2
-
-
-
-
91,132
Un
a
s
s
i
g
n
e
d
1,
9
8
8
,
8
9
4
-
-
-
(3
3
6
,
0
4
8
)
1,652,846
To
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
2,
8
2
7
,
7
4
6
1,
6
6
6
,
6
0
7
15
7
,
2
9
6
11
2
,
1
9
8
(2
8
9
,
0
6
5
)
4,474,782
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
3,
1
2
0
,
8
2
1
$
2,
4
8
3
,
1
9
5
$
31
3
,
9
0
5
$
11
2
,
1
9
8
$
46
,
9
8
3
$
6,077,102
$
- 2
1
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
GO
V
E
R
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M
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F
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S
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L
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p
t
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b
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r
3
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,
2
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1
8
Se
e
a
c
c
o
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n
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n
d
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n
t
a
u
d
i
t
o
r
'
s
r
e
p
o
r
t
Fund balances of governmental funds 4,474,782$
Amounts reported for governmental activities in the statement of
net position are different because
Interest receivable is not current financial resources and
therefore is not reported in the funds.1,831
Prepaid expenses are not a current financial resource. Therefore,
they are not included in the governmental funds.21,696
Capital assets, net of depreciation, are not current financial
resources and are not included in the governmental funds.25,095,029
Accrued compensated absences are not due and payable in the
current period and therefore are not reported in the funds.(231,618)
Accrued interest does not require current financial resources and
therefore is not reported in the funds.(19,757)
Nonrefundable prepaid deposits are reported as current resources in the
government funds, but are deferred invlows on the government-wide statements.(46,000)
Debt payable is not a current financial resource. Therefore,
it is not included in the governmental funds.(6,419,935)
Taxes and special assessments receivable that are not available to pay for current period
expenditures are recorded as deferred inflows in the governmental funds.941,707
Net position of governmental activities 23,817,735$
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, 2018
TO THE STATEMENT OF NET POSITION
Ge
n
e
r
a
l
De
b
t
S
e
r
v
i
c
e
St
r
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t
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e
n
t
a
l
Fu
n
d
Fu
n
d
Fu
n
d
Fu
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d
Fu
n
d
s
Total
RE
V
E
N
U
E
S
Ta
x
e
s
4 ,78
2
,65
1
$
4
9
,30
2
$
1
,13
3
,58
2
$
-
$
1
4
4
,917
$
6
,110 ,452 $
Ke
n
o
p ro
c
e
e
d
s
-
-
-
87
,10
9
-
87 ,109
Ch
a
r
g es
f
o
r
s
e
r
v
i
c
e
s
1 ,49
4
,82
9
-
-
-
-
1 ,494 ,829
S p ec
i
a
l
a
s
s
e
s
s
m
e
n
t
-
2
2
1
,81
3
-
-
-
221 ,813
S p ec
i
a
l
a
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e
s
s
m
e
n
t
i
n
t
e
r
e
s
t
-
42
,38
5
-
-
-
42 ,385
In
t
e
r
e
s
t
i
n
c
o
m
e
1
1
,25
0
2 ,73
9
15
3
10
0
9 14 ,251
In
t
e
r
g ov
e
r
n
m
e
n
t
a
l
60
,04
7
-
23
1
,20
8
-
-
291 ,255
Ot
h
e
r
r
e
v
e
n
u
e
s
1
3
4
,39
0
-
75
,17
1
-
-
209 ,561
To
t
a
l
r
e
v
e
n
u
e
s
6
,48
3
,16
7
3
1
6
,23
9
1
,44
0
,11
4
8
7
,20
9
1
4
4
,926
8
,471 ,655
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 ,92
4
,05
4
43
1
-
-
1 ,449 1 ,925 ,934
Po
l
i
c
e
D
e
p ar
t
m
e
n
t
1 ,84
3
,53
0
-
-
-
-
1 ,843 ,530
Fi
r
e
D
e
p ar
t
m
e
n
t
19
0
,37
6
-
-
-
-
190 ,376
Pa
r
k
s
D
e
p ar
t
m
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n
t
56
4
,17
6
-
-
-
-
564 ,176
Li
b
r
a
r
y
71
0
,50
9
-
-
-
-
710 ,509
Sw
i
m
m
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n
g p oo
l
48
,43
7
-
-
-
-
48 ,437
Zo
n
i
n
g
34
0
,91
4
-
-
-
-
340 ,914
An
i
m
a
l
c
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n
t
r
o
l
97
,10
7
-
-
-
-
97 ,107
Ca
p it
a
l
o
u
t
l
a
y
21
7
,84
3
-
51
7
,72
5
-
33
6
,048 1 ,071 ,616
Do
n
a
t
e
d
f
u
n
d
s
3
6
,00
9
-
-
-
-
36 ,009
Ke
n
o
e
x
p en
s
e
-
-
-
1
9
,36
6
-
19 ,366
St
r
e
e
t
-
-
1
,34
7
,47
4
-
-
1 ,347 ,474
De
b
t
s
e
r
v
i
c
e
Pr
i
n
c
i
p le
-
39
5
,00
0
-
-
10
0
,000
4
9
5
,000
In
t
e
r
e
s
t
-
9
9
,03
3
-
-
21
,859 120 ,892
To
t
a
l
e
x
p en
d
i
t
u
r
e
s
5 ,97
2
,95
5
4
9
4
,46
4
1
,86
5
,19
9
1
9
,36
6
4
5
9
,356
8
,811 ,340
EX
C
E
S
S
(
D
E
F
I
C
I
E
N
C
Y
)
O
F
R
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S
OV
E
R
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X
P
E
N
D
I
T
U
R
E
S
51
0
,21
2
(17
8
,22
5
)
(42
5
,08
5
)
67
,84
3
(31
4
,430 )
(339 ,685 )
OT
H
E
R
F
I
N
A
N
C
I
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G
S
O
U
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C
E
S
(
U
S
E
S
)
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l e
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f a
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s
25
,95
7
1
1
0
,00
0
19
,50
0
-
-
1
5
5
,457
In
s
u
r
a
n
c
e
p
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d
s
-
-
6
,53
3
-
-
6 ,533
Op
e
r
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n
s
f
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r
s
-
i
n
2 ,15
5
,33
5
37
7
,30
0
62
6
,75
4
-
-
3 ,159 ,389
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
e
r
s
-
o
u
t
(2 ,34
6
,46
6
)
-
(39
,03
0
)
(11
7
,64
5
)
-
(2 ,503 ,141 )
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
(16
5
,17
4
)
48
7
,30
0
6
1
3
,75
7
(11
7
,64
5
)
-
818 ,238
N ET
C
H
A
N
G
E
I
N
F
U
N
D
B
A
L
A
N
C
E
S
34
5
,
0
3
8
30
9
,
0
7
5
18
8
,
6
7
2
(4
9
,
8
0
2
)
(3
1
4
,
4
3
0
)
478,553
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
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
FU
N
D
BA
L
A
N
C
E
S
,
EN
D
OF
YE
A
R
2 ,82
7
,74
6
$
1 ,66
6
,60
7
$
15
7
,29
6
$
11
2
,19
8
$
(2
8
9
,065)
$
4 ,474 ,782 $
- 2
3
-
Ci
t
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
ST
A
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M
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O
F
R
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V
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U
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S
,
E
X
P
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D
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,
A
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A
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A
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-
G
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F
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Fo
r
t
h
e
y
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a
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d
S
e
p
t
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m
b
e
r
3
0
,
2
0
1
8
Se
e
a
c
c
o
m
p
a
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y
i
n
g
n
o
t
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s
a
n
d
i
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p
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t
a
u
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i
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o
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'
s
r
e
p
o
r
t
Net changes in fund balance - total governmental funds 478,553$
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 1,243,810
Depreciation expense (1,419,374)
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 loss in the government-wide statements (137,815)
Payment of bond principal and capital lease payments are an expenditure in the
govermental funds, but issuing debt reduces long-term liabilities
in the statement of net position.614,582
Income that is recognized as current financial resources, but are not
reported as revenue at the government-wide statements (480,696)
Income recognized at the government-wide statements that is not a current financial
resource in the government funds.119,081
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.(13,221)
Change in net position of governmental activities 404,920$
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, 2018
TO THE STATEMENT OF ACTIVITIES
Water Sewer Total
CURRENT ASSETS
Cash 3,199,112$ 617,703$ 3,816,815$
Accounts receivable - Utilities/user fees 1,274,086 209,168 1,483,254
Accrued interest receivable 8,198 1,472 9,670
Prepaid expense 11,118 3,514 14,632
Total current assets 4,492,514 831,857 5,324,371
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 66,645 212,539 279,184
Infrastructure 21,814,740 3,223,677 25,038,417
Buildings 39,999,848 6,310,834 46,310,682
Equipment 2,680,082 1,224,115 3,904,197
Accumulated depreciation (23,595,416) (5,856,526) (29,451,942)
Total capital assets 41,339,807 5,164,514 46,504,321
TOTAL ASSETS 47,968,257$ 6,236,129$ 54,204,386$
CURRENT LIABILITIES
Accounts payable 446,135$ 27,327$ 473,462$
Accrued expenses 155,988 69,535 225,523
Accrued interest 261,281 27,296 288,577
Deposits 1,700 - 1,700
Registered warrants 55,357 202,540 257,897
Bonds payable, current portion 1,434,801 215,792 1,650,593
Total current liabilities 2,355,262 542,490 2,897,752
NON-CURRENT LIABILITIES
Bonds payable, net of current portion 23,058,152 2,173,133 25,231,285
Total liabilities 25,413,414 2,715,623 28,129,037
NET POSITION
Net investment in capital assets 16,846,854 2,775,589 19,622,443
Restricted for debt service 2,135,936 239,758 2,375,694
Unrestricted 3,572,053 505,159 4,077,212
Total net position 22,554,843 3,520,506 26,075,349
Total liabilities and net position 47,968,257$ 6,236,129$ 54,204,386$
- 25 -
ASSETS
LIABILITIES AND NET POSITION
Enterprise Funds
City of Blair, Nebraska
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
September 30, 2018
See accompanying notes and ndependent auditor's report
Water Sewer Total
OPERATING REVENUES
Charges for services 7,528,736$ 1,208,679$ 8,737,415$
Sale of merchandise 31,712 - 31,712
Forfeited discounts 15,102 - 15,102
Other 79,972 163,466 243,438
Total operating revenues 7,655,522 1,372,145 9,027,667
EXPENSES
Personnel 1,279,565 461,928 1,741,493
Operating expenses 813,602 221,892 1,035,494
Utilities 762,936 67,356 830,292
Chemicals 1,106,475 48,635 1,155,110
Materials and supplies 156,637 13,382 170,019
Depreciation 1,789,661 228,883 2,018,544
Total expenses 5,908,876 1,042,076 6,950,952
OPERATING INCOME 1,746,646 330,069 2,076,715
NON-OPERATING REVENUES (EXPENSES)
Insurance recoveries 3,668 - 3,668
Interest income 37,069 4,037 41,106
Miscellaneous revenues 33,705 - 33,705
Interest expense (918,157)(68,343) (986,500)
Bonding costs (38,279)- (38,279)
Total nonoperating revenues (expenses)(881,994) (64,306) (946,300)
INCOME (LOSS) BEFORE TRANSFERS 864,652 265,763 1,130,415
OPERATING TRANSFERS
Operating transfers - out (656,248)- (656,248)
Total operating transfers (656,248) - (656,248)
CHANGE IN NET POSITION 208,404 265,763 474,167
22,346,439 3,254,743 25,601,182
NET POSITION, END OF YEAR 22,554,843$ 3,520,506$ 26,075,349$
- 26 -
City of Blair, Nebraska
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
For the year ended September 30, 2018
See accompanying notes and independent auditor's report
Enterprise Funds
NET POSITION, BEGINNING OF YEAR
Water Sewer Total
Cash received from customers 7,658,129$ 1,358,910$ 9,017,039$
Cash payments to suppliers (2,737,635) (351,879) (3,089,514)
Cash payments to employees (1,275,290) (456,684) (1,731,974)
Cash provided from operating activities 3,645,204 550,347 4,195,551
CASH FLOWS FROM NON-CAPITAL
FINANCIAL ACTIVITIES
Operating transfers (656,248) - (656,248)
Proceeds from operating grants 33,705 - 33,705
Cash provided from non-capital financial
activities (622,543) - (622,543)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets (507,881) (227,160) (735,041)
Insurance proceeds 3,668 - 3,668
Repayment of warrants 55,357 202,540 257,897
Principle paid on notes and bonds (1,818,146) (124,949) (1,943,095)
Interest paid on notes and bonds (963,459) (70,202) (1,033,661)
Bond issuance costs (38,279) - (38,279)
Cash used from capital and related
financing activities (3,268,740) (219,771) (3,488,511)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from interest earnings 34,323 2,833 37,156
Cash provided from investing activities 34,323 2,833 37,156
CHANGE IN CASH AND CASH EQUIVALENTS (211,756) 333,409 121,653
CASH AND CASH EQUIVALENTS,
BEGINNING OF YEAR 3,410,868 284,294 3,695,162
CASH AND CASH EQUIVALENTS,
END OF YEAR 3,199,112$ 617,703$ 3,816,815$
See accompanying notes and independent auditor's report.
-27-
City of Blair, Nebraska
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
September 30, 2018
CASH FLOWS FROM OPERATING ACTIVITIES
Enterprise Funds
Water Sewer Total
Reconciliation of operating income to net cash
from operating activities
Operating income 1,746,646$ 330,069$ 2,076,715$
Adjustments to reconcile operating income
to net cash from operating activities
Depreciation 1,789,661 228,883 2,018,544
Change in receivables 2,607 (13,235) (10,628)
Change in prepaid expenses (860) 143 (717)
Change in accounts payable 102,875 (757) 102,118
Change in accrued expenses 4,275 5,244 9,519
Total adjustments 1,898,558 220,278 2,118,836
CASH PROVIDED FROM OPERATING ACTIVITIES 3,645,204$ 550,347$ 4,195,551$
See accompanying notes and independent auditor's report.
-28-
Enterprise Funds
City of Blair, Nebraska
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
September 30, 2018
Pension TIF
Trust Fund Fund 1
ASSETS
Cash and cash equivalents - $ 2,812$
Investment in fiscal agent:
Principal investment accounts 9,702,929 -
Total Assets 9,702,929$ 2,812$
LIABILITIES
Held for others - $ 2,812$
Total Liabilities
NET POSITION
Net position (deficit) held in trust for retirement 9,702,929 -
Total Net Position 9,702,929 -
Total liabilities and net position 9,702,929$ 2,812$
See accompanying notes and independent auditor's report
- 29 -
City of Blair, Nebraska
STATEMENT OF NET POSITION
FIDUCIARY FUNDS
September 30, 2018
Pension
Trust Fund
Additions
Contributions
Employer 203,627$
Employee 275,735
Total Contributions 479,362
Investment Earnings
Dividends 2,776
Net increase in the fair value of investments 759,179
Total Additions 1,241,317
Deductions
Withdrawals 44,463
Cash retirements 109,684
Contribution credit-forfeitures 2,156
Terminations 186,224
Minimum distributions 3,093
Administrative expenses 11,881
Total Deductions 357,501
Change in Net Position 883,816
Net Position, Beginning of Year 8,819,113
Net Position, End of Year 9,702,929$
City of Blair, Nebraska
FIDUCIARY FUNDS
September 30, 2018
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, 2018
- 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, 2018
- 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, 2018
- 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. T h e C i t y h a s
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) 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, 2018
- 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 Project Funds are used to fund capital project construction,
development, improvement, and repairs. These funds are shown as o t h e r
governmental funds on the financial statements.
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, 2018
- 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.
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.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 36 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
2. Basis of Accounting/Measurement Focus – Continued
Fiduciary Fund Financial Statements – Continued
The City reports the following fiduciary funds:
TIF Funds – 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, 2018
- 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 the 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, 2018.
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, 2018.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 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. Suc h a s s e t s a r e
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, 2018
- 39 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES – CONTINUED
7. Property Taxes - Continued
The City’s December 31, 2017, valuation was $528,436,443. The levy for the
City for the year ending September 30, 2018, was $0.358163 per $100 of value.
The total tax levy was $1,892,664. 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, 2018
- 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, 2018, 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, 2018:
Transfers Out: General Fund Debt Service Street Fund
Capital
Projects Fund Water Sewer Total
General Fund 1,688,687 $ 62,300 $ 595,479$ -$ -$ -$ 2,346,466$
Debt Service - - - - - - -
Street Fund 39,030 - - - - - 39,030
Keno Fund 71,370 15,000 31,275 - - - 117,645
Water 356,248 300,000 - - - - 656,248
Sewer - - - - - - -
2,155,335 $ 377,300 $ 626,754$ - $ - $ - $ 3,159,389$
Transfers In :
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 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 $10,865,259 at September 30, 2018. The bank balances of the City’s
cash deposits at September 30, 2018, was $10,954,543. The City’s carrying amount and
bank balances include $2,560,875 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 105%.
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 $2,375,694 are restricted for the enterprise funds (Water and Sewer) for bond and
interest expenditures. The cash in the Donations Fund is restricted based on the donor-
imposed restrictions. The cash in the Economic Development Fund is restricted for
economic development and can only be used if it is approved via vote per the City
Council. The City Council annually decides how much to budget for the fund. The budget
is set not to exceed 1/10 of one per cent of the annual City valuation.
The cash in the Debt Service Fund is restricted for the special assessments pledged for
the payment of the G.O. bonds. The cash in the Capital Projects (TIFs 1, 3, & 4) is
restricted to pay for the construction projects. If a balance exists after the completion of
the projects at the end of the 15 years, those funds would be required to be returned to the
County Treasurer for distribution to all taxing entities. The cash in the Water Fund is
restricted to pay for the construction and related costs of the water plant expansion
contract. If any funds are still available upon completion of the plant expansion project,
the unused funds could only be used to pay principle and interest on the bond notes.
These funds were received per the bond anticipation note.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 42 -
NOTE B. DEPOSITS AND INVESTMENTS – CONTINUED
The cash in the Rescue Squad Fund is restricted for the use of the City Fire and Rescue
Departments. The cash in the Reuse fund is restricted and can only be used per the Reuse
plan or be forfeited to the Nebraska Department of Economic Development. The cash in
the Keno fund is restricted for Keno purposes.
The following is detail of amounts included in cash, which are restricted for specific
purposes:
Fund Amount
Keno 108,905$
General-Rescue Squad 243,044
Water 2,135,936
Sewer 239,758
Library Fund 12,500
Debt Service 1,665,659
General-Economic Development 438,699
General-Donations 56,153
4,900,654$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 43 -
NOTE C. CAPITAL ASSETS
A summary of changes in capital assets is as follows:
Governmental Activities
Balance
September 30,
2017 Increases Decreases
Balance
September 30,
2018
Capital assets not depreciated
Land 1,227,085$ 22,414$ (109,709)$ 1,139,790$
Construction in progress 100,972 1,027,131 (697,872) 430,231
Total capital assets not depreciated 1,328,057 1,049,545 (807,581) 1,570,021
Other capital assets
Infrastructure 18,339,522 480,100 - 18,819,622
Buildings 8,656,189 2,507,575 - 11,163,764
Equipment 7,093,856 204,563 (65,926) 7,232,493
Total other capital assets 34,089,567 3,192,238 (65,926) 37,215,879
Less accumulated depreciated
Infrastructure (4,553,346) (608,407) - (5,161,753)
Buildings (3,879,789) (270,572) - (4,150,361)
Equipment (3,875,597) (540,396) 37,236 (4,378,757)
Total accumulated depreciation (12,308,732) (1,419,375) 37,236 (13,690,871)
Other capital assets, net 21,780,835 1,772,863 (28,690) 23,525,008
Governmental activities capital assets, net 23,108,892$ 2,822,408$ (836,271)$ 25,095,029$
Depreciation expense was charged to governmental activities functions as follows:
Current
Depreciation Impairment Loss
Total Change in
Accumulated
Depreciation
Administration 45,674$ -$
Police 97,200 -
Fire 108,981 -
Parks 145,702 -
Library 170,083 -
Swimming pool 34,318 -
Animal control 18,399 -
Rescue Squad 760,405 -
Streets 38,613 -
Total Depreciation 1,419,375$ -$ 1,419,375$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 44 -
NOTE C. CAPITAL ASSETS – CONTINUED
Business-Type Activities
Balance
September 30,
2017 Increases Decreases
Balance
September 30,
2018
Capital assets not depreciated
Land 423,783$ -$ -$ 423,783$
Construction in progress 1,319,110 617,267 (1,657,193) 279,184
Total capital assets not depreciated 1,742,893 617,267 (1,657,193) 702,967
Other capital assets
Infrastructure 24,784,990 253,427 - 25,038,417
Buildings 45,607,934 702,748 - 46,310,682
Equipment 3,117,981 818,793 (32,577) 3,904,197
Total other capital assets 73,510,905 1,774,968 (32,577) 75,253,296
Less accumulated depreciated
Infrastructure (3,603,022) (700,249) - (4,303,271)
Buildings (21,500,343) (1,139,493) - (22,639,836)
Equipment (2,362,610) (178,802) 32,577 (2,508,835)
Total accumulated depreciation (27,465,975) (2,018,544) 32,577 (29,451,942)
Other capital assets, net 46,044,930 (243,576) - 45,801,354
Business-type activities, net 47,787,823$ 373,691$ (1,657,193)$ 46,504,321$
Depreciation was charged to business-type activities as follows:
Current
Depreciation Impairment Loss
Total Change in
Accumulated
Depreciation
Water 228,883$ -$
Sewer 1,789,661 -
Total Depreciation 2,018,544$ -$ 2,018,544$
NOTE D. BONDS PAYABLE
A summary of the changes is as follows:
Governmental Activities
Balance Balance Due
Interest September 30,September 30,within
Dated Description Rate 2017 Additions Reductions 2018 1 year
12/14/2007 Tax increment
financing bond 4.48%530,000$ - $ (100,000)$ 430,000$ 100,000$
2/26/2008 Public safety tax
anticipation bonds 3.75 - 4.25%330,000 - (50,000) 280,000 50,000
7/28/2015 General Obligation 1.5 - 2.65%940,000 - (105,000) 835,000 115,000
12/21/2015 Public safety tax
anticipation bonds 1.3 - 2.60%110,000 - (10,000) 100,000 10,000
5/2/2017 General Obligation 1.30 - 3.75% 2,825,000.00 - (230,000) 2,595,000 225,000
Total 4,735,000$ -$ (495,000)$ 4,240,000$ 500,000$
Business-type Activities
Balance Balance Due
Interest September 30,September 30,within
Dated Description Rate 2017 Additions Reductions 2018 1 year
WATER DEBT
9/28/2010 2010B Revenue Bonds 2.75 - 4.35% 6,500,000$ - $ - $ 6,500,000$ 405,000$
9/28/2010 2010C Revenue Bonds 3.25 - 3.50%390,000 - (390,000) - -
6/15/2010 SRF 2010 2.25%2,551,099 - (73,146) 2,477,953 74,801
6/5/2012 2012A Revenue Bonds 2.8 - 5.50% 7,860,000 - (1,000,000) 6,860,000 545,000
8/24/2016 2016 Revenue Bonds 1.60 - 4.00% 5,550,000 - (355,000) 5,195,000 360,000
3/28/2017 2017 Revenue Bonds 2.00 - 4.75% 3,460,000 - - 3,460,000 50,000
Total water 26,311,099$ -$ (1,818,146)$ 24,492,953$ 1,434,801$
SEWER DEBT
12/15/2004 2004 Revenue Bonds 4.2 - 4.25%145,000$ - $ (75,000)$ 70,000$ 70,000$
2/17/2011 2011 Revenue Bonds 2.10%723,874 - (39,949) 683,925 40,792
9/10/2015 2015 Revenue Bonds 0.95 - 3.40% 1,645,000 - (10,000) 1,635,000 105,000
Total sewer 2,513,874$ - (124,949)$ 2,388,925$ 215,792$
City of Blair, Nebraska
NOTES TO FINANCIAL STATEMENTS - CONTINUED
For the year ended September 30, 2018
- 45 -
NOTE D. BONDS PAYABLE - CONTINUED
Debt service requirements at September 30, 2018 were as follows:
Governmental Activities
Principal Interest Total
500,000$ 110,438$ 610,438$
490,000 98,948 588,948
500,000 86,521 586,521
520,000 72,901 592,901
410,000 60,689 470,689
1,255,000 177,961 1,432,961
295,000 82,028 377,028
270,000 25,688 295,688
4,240,000$ 715,174$ 4,955,174$
Business-type Activities
Principal Interest Total
1,434,801$ 884,362$ 2,319,163$
1,906,494 846,324 2,752,818
1,503,224 788,654 2,291,878
1,949,994 742,424 2,692,418
1,601,804 675,790 2,277,594
6,432,636 2,593,408 9,026,044
6,509,439 1,298,091 7,807,530
2,542,374 287,896 2,830,270
612,187 38,516 650,703
24,492,953$ 8,155,465$ 32,648,418$
Principal Interest Total
215,793$ 58,453$ 274,246$
131,654 54,796 186,450
137,533 52,433 189,966
143,431 49,679 193,110
144,348 46,586 190,934
811,183 175,578 986,761
804,983 47,075 852,058
2,388,925$ 484,600$ 2,873,525$
City of Blair, NebraskaNOTES TO FINANCIAL STATEMENTS - CONTINUEDFor the year ended September 30, 2018
2034 - 2038
Total
2022
2023
2021
Year ending September 30,
Year ending September 30,
2022
2021
2019
2020
2019
2020
2021
2024 - 2028
2029 - 2033
2034-2038
2023
Water Bonds
Sewer Bonds
- 46 -
Year ending September 30,
2019
2020
2024 - 2028
2029 - 2033
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 $2,365,180 at September 30, 2018.
2022
2023
2039 - 2043
Total
2024 - 2028
2029 - 2033
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 47 -
NOTE E. CAPITAL LEASE
The City has entered into an agreement with the Blair Public Library Foundation to lease
the Blair Public Library building. Under this agreement, the building will become the
property of the City when all terms of the lease agreement are met.
Beginning Balance Additions Reductions Ending Balance
-$ 2,299,517$ 119,582$ 2,179,935$
Total Lease Obligations -$ 2,299,517$ 119,582$ 2,179,935$
Library Building
The following schedule presents the future minimum lease payments as of September 30,
2018:
Present Value of
Minimum Lease
Payments
Interest Total
114,432$ 10,531$ 124,963$
109,505 15,458 124,963
104,789 20,174 124,963
100,277 24,686 124,963
95,959 29,004 124,963
421,255 203,560 624,815
338,037 286,778 624,815
271,258 353,557 624,815
217,671 407,144 624,815
174,670 450,144 624,814
140,166 484,650 624,816
91,916 407,936 499,852
2,179,935$ 2,693,622$ 4,873,557$
2022
2023
2053 - 2057
Total
2024 - 2028
2029 - 2033
2034 - 2038
2039 - 2043
2044 - 2048
2049 - 2053
2021
2019
2020
Year ending September 30,
Leased land, buildings, and equipment under capital leases in capital assets as of
September 30, 2018 include the following:
Land -$
Buildings 2,299,517
Equipment -
Less: Accumulated depreciation (57,488)
Total 2,242,029$
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 48 -
NOTE F. RECONCILIATION OF LONG-TERM LIABILITIES
Balance
Governmental Business-type
Activities Activities Total
Bonds Payable - Current 500,000$ 1,650,593$ 2,150,593$
Capital Lease - Current 114,432 - 114,432
Current Portion of Long Term Liabilities 614,432 1,650,593 2,265,025
Bonds Payable - NonCurrent 3,740,000 25,231,285 28,971,285
Capital Lease - NonCurrent 2,065,503 - 2,065,503
NonCurrent Portion of Long Term 5,805,503 25,231,285 31,036,788
Total Bonds Payable 4,240,000 26,881,878 31,121,878
Total Capital Lease 2,179,935 - 2,179,935
Total Long Term Liabilities 6,419,935$ 26,881,878$ 33,301,813$
NOTE G. 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.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 49 -
NOTE G. NET POSITION AND FUND BALANCES - CONTINUED
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.
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 in restricted, committed, or assigned fund
balances as appropriate. Encumbrances can be made in any fund and do not lapse at year
end.
NOTE H. 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.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 50 -
NOTE I. 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.
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 are 100% vested in
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, 2018, totaled
$190,051 which consisted of $95,518 contributed by employees and $94,533 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, 2018,
totaled $140,425 which consisted of $111,774 contributed by employees and $28,651
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.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 51 -
NOTE I. PENSION PLANS – CONTINUED
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. T he C ity has
fiduciary responsibility for the plan, and it is a single employer plan only. Contributions
of $136,886 for the year ended September 30, 2018 were 14% 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 2018.
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 $1,750
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, 2018, totaled $12,000.
NOTE J. 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 (29.3%), grants
receivable (0.6%), property taxes (11.39%) and other (0.6%) receivables.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 52 -
NOTE K. SPECIAL ASSESSMENTS RECEIVABLE
The City’s special assessments outstanding as of September 30, 2018, are composed of
special assessment principle of $822,626.
The delinquent special assessments at September 30, 2018 are 17.44% 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 L. 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 adve r s e e f f e c t o n t h e
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, 2018. Although Cargill represents 85.9% of water sales, the
City has a contract with the company that secures a minimum monthly revenue stream for
payment of the water debt through June 2032, which minimizes the risk for payment of
water bonds.
NOTE M. ADOPTION OF NEW ACCOUNTING PRONOUNCEMENTS
In March 2016, GASB issued Statement No. 81 Irrevocable Split-Interest Agreements.
The objective of this Statement is to improve 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 Omniubs 2017. The objective of this
Statement is to address practice issues that have been identified during implementation
and application of certain GASB Statements. This Statement addresses a variety of topics
including issues related to 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. This Statement also improves accounting
and financial reporting for prepaid insurance on debt that is extinguished and notes to
financial statements for debt that is defeased in substance.
Adoption of these pronouncement did not have a significant effect on the financial
statements of the Authority.
City of Blair, Nebraska
NOTES TO THE FINANCIAL STATEMENTS
For the year ended September 30, 2018
- 53 -
NOTE N. NEW ACCOUNTING PRONOUNCEMENTS NOT YET ADOPTED
In November 2016, GASB issued Statement No. 83 Certain Asset Retirement
Obligations. The objective of this Statement is to establish criteria for determining the
timing and pattern of recognition of a liability and a corresponding deferred outflow of
resources for asset retirement obligations.
This Statement is effective for the Authority’s year ending September 30, 2019.
NOTE O. NEGATIVE FUND BALANCE
The combination of the Capital Construction funds, which is reported within the other
governmental funds column, results in a negative fund balance of $289,065. These
governmental funds have a negative unassigned fund balance as a result of overspending
for specific purposes for which amounts had been committed.
NOTE P. SUBSEQUENT EVENT
As of February 15, 2019, the Airport has entered into a lease agreement with the City of
Omaha Police Department for the lease of Airport hangar space. The agreement calls for
the addition of office space and improvements to the Airport hangar with an
approximate cost of $1,150,000. The total costs will be paid by the City of Omaha upon
move-in and will be financed during construction through the draw-down of bonds.
REQUIRED SUPPLEMENTAL INFORMATION
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Taxes 4,784,722$ 4,748,714$ 36,008$
Charges for services 1,658,725 1,494,829 163,896
Interest income 9,015 9,500 (485)
Other revenues 134,100 194,437 (60,337)
Total revenues 6,586,562 6,447,480 139,082
EXPENDITURES
Administration 805,465 712,712 92,753
Police Department 2,308,320 1,845,235 463,085
Fire Department 171,160 105,134 66,026
Parks Department 928,520 774,610 153,910
Library 724,512 709,601 14,911
Swimming Pool 70,300 48,437 21,863
Zoning 375,780 340,849 34,931
Mitigation 20,000 (3,000) 23,000
Insurance 1,125,618 913,335 212,283
Animal control 96,725 97,075 (350)
Donated Funds 73,119 37,009 36,110
Rescue Squad 160,750 85,242 75,508
Economic Development 745,000 310,000 435,000
Total expenditures 7,605,269 5,976,239 1,629,030
REVENUES OVER (UNDER) EXPENDITURES (1,018,707) 471,241 (1,489,948)
OTHER FINANCING SOURCES (USES)
Sale of Assets 15,000 3,019 11,981
Bond Proceeds 240,000 - 240,000
Insurance Proceeds - 22,938 (22,938.00)
Operating transfers - in 2,246,600 2,148,087 98,513
Operating transfers - out (2,681,200) (2,345,472) (335,728)
Total other financing sources (uses)(179,600) (171,428) (8,172)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (1,198,307) 299,813 (1,498,120)$
FUND BALANCE - BEGINNING OF YEAR 2,111,500 2,111,500
FUND BALANCE - END OF YEAR 913,193$ 2,411,313$
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
For the year ended September 30, 2018
GENERAL FUND - BUDGETARY BASIS (Unaudited)
See independent auditor's report
- 55 -
FUND BALANCE - END OF YEAR 2,411,313$
371,208
Accrual adjustment for receivables 41,941
Accrual adjustments for payables 3,284
General Fund Balance 2,827,746$
- 56 -
See independent auditor's report
BUDGETARY COMPARISON SCHEDULE
GENERAL FUND - BUDGETARY BASIS (Unaudited) - CONTINUED
For the year ended September 30, 2018
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.
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 1,673,722$ 1,655,027$ 18,695$
Sales tax 2,610,000 2,565,569 44,431
Motor vehicle tax 173,600 189,902 (16,302)
Occupation and franchise tax 250,000 263,345 (13,345)
Other taxes 77,400 74,871 2,529
Total taxes 4,784,722 4,748,714 36,008
Charges for services
Business licenses and permits 214,825 201,694 13,131
Library 12,600 14,802 (2,202)
Equipment rental 75,500 79,840 (4,340)
Cemetery lots 16,000 16,700 (700)
Insurance 1,123,000 937,643 185,357
Grave openings 26,000 26,800 (800)
Towing 13,000 12,655 345
Rescue Squad 150,000 153,854 (3,854)
Other fees and charges 5,800 25,932 (20,132)
Sales of fireworks 15,000 15,000 -
RV park 7,000 9,909 (2,909)
Total charges for services 1,658,725 1,494,829 163,896
INTEREST INCOME 9,015 9,500 (485)
OTHER REVENUES
State grants 62,500 58,500 4,000
Donations 15,100 51,013 (35,913)
Reimbursements 42,000 72,894 (30,894)
Other miscellaneous revenue 14,500 12,030 2,470
Total other revenues 134,100 194,437 (60,337)
Total revenues 6,586,562$ 6,447,480$ 139,082$
City of Blair, Nebraska
GENERAL FUND REVENUES - BUDGETARY BASIS (Unaudited)
For the year ended September 30, 2018
BUDGETARY COMPARISON SCHEDULE
- 57 -
See independent auditor's report
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Property taxes 237,600$ 213,828$ 23,772$
Other local taxes 24,100 35,042 (10,942)
Federal funds - 74,555 (74,555)
State funds 1,041,104 1,061,023 (19,919)
Warrant income 1,500,000 55,450 1,444,550
Interest income 100 153 (53)
Other revenue 62,000 51,292 10,708
Total revenues 2,864,904 1,491,343 1,373,561
EXPENDITURES
Salaries 443,403 394,147 49,256
FICA 33,500 29,146 4,354
Employee insurance 181,300 167,150 14,150
Retirement 26,500 22,222 4,278
Legal 3,760 2,700 1,060
Auditing 8,400 7,984 416
Engineering 100,000 41,977 58,023
Office expense 11,600 6,273 5,327
Utilities 10,000 11,990 (1,990)
Telephone 2,400 2,328 72
Travel 8,000 7,901 99
Training 8,000 5,907 2,093
Insurance 27,800 34,408 (6,608)
Maintenance 87,400 74,583 12,817
Street lighting 160,000 163,958 (3,958)
County fees 1,800 2,097 (297)
Car expense 5,000 2,535 2,465
Contract landscaping 61,000 44,997 16,003
Gas, diesel, and oil 24,000 29,071 (5,071)
Materials and supplies 195,600 188,272 7,328
Rental 30,000 13,334 16,666
Capital outlay
Equipment 245,000 87,579 157,421
Street improvements 2,143,000 524,978 1,618,022
Total expenditures 3,817,463 1,865,537 1,951,926
REVENUES OVER (UNDER) EXPENDITURES (952,559)$ (374,194)$ (578,365)$
See independent auditor's report
- 58 -
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
STREET FUND - BUDGETARY BASIS (Unaudited)
For the year ended September 30, 2018
REVENUES OVER (UNDER) EXPENDITURES (952,559)$ (374,194)$ (578,365)$
OTHER FINANCING SOURCES
Sale of assets - 19,500 (19,500)
Insurance proceeds - 6,533 (6,533)
Operating transfers - in 889,500 626,754 262,746
Operating transfers - out - (39,030) 39,030
Total other financing sources 889,500 613,757 275,743
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES AND OTHER SOURCES (63,059) 239,563 (302,622)$
FUND BALANCE BEGINNING OF YEAR 38,639 38,639
FUND BALANCE END OF YEAR (24,420)$ 278,202
(70,015)
Accrual adjustments for receivables (51,229)
Accrual adjustments for payables 338
157,296$
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.
General Fund Balance
Accrual adjustments made because the City budgets for
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
STREET FUND - BUDGETARY BASIS (Unaudited) - CONTINUED
For the year ended September 30, 2018
Original and
Final (Over)/Under
Budget Actual Budget
REVENUES
Keno/lottery proceeds 100,000$ 86,866$ 13,134$
Other revenue 50 100 (50)
Total Revenue 100,050 86,966 13,084
EXPENDITURES
Community Betterment Project 30,000 - 30,000
Other expenses 25,100 19,366 5,734
Total expenditures 55,100 19,366 35,734
REVENUES OVER (UNDER) EXPENDITURES 44,950 67,600 (22,650)
OTHER FINANCING SOURCES (USES)
Operating transfers - out (182,300) (117,645) (64,655)
REVENUES AND OTHER FINANCING SOURCES
OVER (UNDER) EXPENDITURES
AND OTHER SOURCES (137,350) (50,045) (87,305)$
FUND BALANCE BEGINNING OF YEAR 158,950 158,950
FUND BALANCE END OF YEAR 21,600$ 108,905
The budget fund balance at the beginning of the year is based on cash
reserves rather than fund balance. 3,050
Accrual adjustment for receivables 243
Accrual adjustments for payables -
Keno Fund Balance 112,198$
City of Blair, Nebraska
BUDGETARY COMPARISON SCHEDULE
KENO FUND - BUDGETARY BASIS (Unaudited)
For the year ended September 30, 2018
- 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:
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
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION
BUDGETARY REPORTING
For the year ended September 30, 2018
- 61 -
NOTE A. BUDGETS
The City follows these procedures in establishing the budgetary data reflected in the
financial statements:
1) At or around May 1, the City’s department and division heads prepare and submit
budget requests for the following fiscal year to the City Administrator who then
reviews the requests with the department and division heads.
2) After this review process has been completed, the City Administrator prepares a
proposed budget for presentation to the Mayor and City Council. This budget request
with recommendations are reviewed during work session(s) of the City Council at
meetings open to the public.
3) After the budget work sessions(s) the proposed budget is presented to the City
Council at the last meeting in August for further discussion, changes, or amendments.
It is then given approval as a proposed budget and scheduled for public hearing.
4) A public hearing on the budget is then conducted at the first Council meeting in
September to obtain citizen comments and then adopted as presented or with
amendments.
5) Prior to September 20th, the adopted budget is submitted to the State Auditor’s office
and County Clerk as required by Nebraska Statutes. The budget as adopted
establishes the proposed level of expenditure, which are not expected to exceed the
budgets total appropriation. If circumstances would require expenditures in excess of
the total budgeted expenses Statutes require amendment by the City Council. Any
increase in expenditures cannot increase the property tax levy for that fiscal year. The
legal level of budgetary control is at the total governmental fund level. Expenditures
in excess of the amount budgeted within individual funds do not require amendment
by the City Council.
6) Formal budgetary integration is employed as a management control device during the
year for all Governmental and Proprietary Funds.
7) The budgets adopted are stated on a cash basis. Budgetary comparisons are presented
in the financial statements for the governmental funds and are on this budgetary basis,
which is not in accordance with U.S. generally accepted accounting principles.
8) There were no budget amendments during the year.
SUPPLEMENTAL INFORMATION
ASSETS
Restricted cash and cash equivalents 438,699$
Total assets 438,699$
FUND BALANCES
Restricted
Economic development 438,699$
Total fund balances 438,699$
- 63 -
City of Blair, Nebraska
INDIVIDUAL FUND BALANCE SHEET
ECONOMIC DEVELOPMENT FUND, A FUND WITHIN THE GENERAL FUND
September 30, 2018
See independent auditor's report
REVENUES
Interest income 870$
Other revenues 6,786
Total revenues 7,656
EXPENDITURES
Administration 310,000
Total expenditures 310,000
EXCESS (DEFICIENCY) OF REVENUES
OVER EXPENDITURES (302,344)
OTHER FINANCING SOURCES (USES)
Operating transfers - in 250,000
Total other financing sources 250,000
NET CHANGE IN FUND BALANCES (52,344)
FUND BALANCES, BEGINNING OF YEAR 491,043
FUND BALANCES, END OF YEAR 438,699$
- 64 -
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, 2018
See independent auditor's report
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s
Ca
s
h
-
70
,
3
6
2
-
-
-
-
56
,
1
5
3
-
-
438,699
565,214
Ce
r
t
i
f
i
c
a
t
e
s
o
f
d
e
p
o
s
i
t
12
,
5
0
0
17
2
,
6
8
2
-
-
-
-
-
-
-
- 185,182
To
t
a
l
a
s
s
e
t
s
82
4
,
6
4
6
$
24
3
,
0
4
4
$
1,
3
8
2
,
5
0
6
$
13
3
,
0
1
4
$
34
,
7
5
9
$
-
$
56
,
1
5
3
$
8,0
0
0
$
-
$
438,699
$
3,120,821 $
LI
A
B
I
L
I
T
I
E
S
Ac
c
o
u
n
t
s
p
a
y
a
b
l
e
91
,
1
3
2
$
-
$
-
$
-
$
-
$
-
$
2,
6
7
6
$
-
$
-
$
- $ 93,808 $
Ac
c
r
u
e
d
e
x
p
e
n
s
e
s
37
,
8
5
3
-
-
-
-
-
-
-
-
- 37,853
De
p
o
s
i
t
s
p
a
y
a
b
l
e
49
,
7
3
1
-
-
-
-
-
-
-
-
- 49,731
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
17
8
,
7
1
6
-
-
-
-
-
2,
6
7
6
-
-
- 181,392
DE
F
E
R
R
E
D
I
N
F
L
O
W
S
O
F
R
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S
O
U
R
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S
Sp
e
c
i
a
l
a
s
s
e
s
s
m
e
n
t
s
8,7
3
6
-
-
-
-
-
-
-
-
- 8,736
Pr
o
p
e
r
t
y
t
a
x
e
s
10
2
,
9
4
7
-
-
-
-
-
-
-
-
- 102,947
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
1
1
,
6
8
3
-
-
-
-
-
-
-
-
- 111,683
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
-
-
-
-
-
-
53
,
4
7
7
-
-
- 53,477
Ec
o
n
o
m
i
c
d
e
v
e
l
o
p
m
e
n
t
-
-
-
-
-
-
-
-
-
438,699
438,699
Li
b
r
a
r
y
12
,
5
0
0
-
-
-
-
-
-
-
-
- 12,500
Re
s
c
u
e
s
q
u
a
d
-
24
3
,
0
4
4
-
-
-
-
-
-
-
- 243,044
As
s
i
g
n
e
d
En
c
u
m
b
r
a
n
c
e
s
91
,
1
3
2
-
-
-
-
-
-
-
-
- 91,132
Un
a
s
s
i
g
n
e
d
43
0
,
6
1
5
-
1
,
3
8
2
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5
0
6
13
3
,
0
1
4
34
,
7
5
9
-
-
8,0
0
0
-
- 1,988,894
To
t
a
l
f
u
n
d
b
a
l
a
n
c
e
s
53
4
,
2
4
7
24
3
,
0
4
4
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3
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2
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6
13
3
,
0
1
4
34
,
7
5
9
-
53
,
4
7
7
8,0
0
0
-
438,699
2,827,746
To
t
a
l
l
i
a
b
i
l
i
t
i
e
s
a
n
d
f
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b
a
l
a
n
c
e
s
82
4
,
6
4
6
$
24
3
,
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4
4
$
1,
3
8
2
,
5
0
6
$
13
3
,
0
1
4
$
34
,
7
5
9
$
-
$
56
,
1
5
3
$
8,0
0
0
$
-
$
438,699
$
3,120,821 $
- 6
5
-
Cit
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
CO
M
B
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N
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B
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N
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R
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p
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b
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r
3
0
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2
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1
8
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e
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t
a
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s
r
e
p
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r
t
Economic Total
Ge
n
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r
a
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R
e
s
c
u
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S
a
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s
T
a
x
I
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y
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e
u
s
e
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e
v
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l
o
p
m
e
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t
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r
a
l
Fu
n
d
S
q
u
a
d
F
u
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d
F
u
n
d
F
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d
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a
x
F
u
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d
F
u
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F
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d
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e
s
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r
v
e
F
u
n
d
F
u
n
d
F
u
n
d
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u
n
d
RE
V
E
N
U
E
S
Ta
x
e
s
2
,
1
2
9
,
1
7
2
$
-
$
2
,
5
9
6
,
7
1
9
$
-
$
56
,
7
6
0
$
-
$
-
$
-
$
- $ - $ 4,782,651 $
Ch
a
r
g
e
s
f
o
r
s
e
r
v
i
c
e
s
4
0
3
,
3
3
2
1
5
3
,
8
5
4
-
93
7
,
6
4
3
-
-
-
-
- - 1,494,829
In
t
e
r
g
o
v
e
r
n
m
e
n
t
a
l
6
0
,
0
4
7
-
-
-
-
-
-
-
- - 60,047
In
t
e
r
e
s
t
i
n
c
o
m
e
6
,
4
2
4
1
,
7
5
0
1
,
8
6
8
1
6
7
4
6
-
12
5
-
- 870 11,250
Ot
h
e
r
r
e
v
e
n
u
e
s
9
6
,
7
0
2
-
-
-
-
-
30
,
9
0
2
-
- 6,786 134,390
To
t
a
l
r
e
v
e
n
u
e
s
2
,
6
9
5
,
6
7
7
1
5
5
,
6
0
4
2
,
5
9
8
,
5
8
7
9
3
7
,
8
1
0
5
6
,
8
0
6
-
31
,
0
2
7
-
- 7,656 6,483,167
EX
P
E
N
D
I
T
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S
Ad
m
i
n
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s
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r
a
t
i
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n
4
8
0
,
3
4
4
-
21
9
,
2
1
7
9
1
3
,
3
3
5
1
,
1
5
2
-
-
-
6
3
1
0
,
0
0
0
1,924,054
Po
l
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e
D
e
p
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r
t
m
e
n
t
1
,
8
4
3
,
5
3
0
-
-
-
-
-
-
-
- - 1,843,530
Fi
r
e
D
e
p
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r
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m
e
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t
1
0
5
,
1
3
4
8
5
,
2
4
2
-
-
-
-
-
-
- - 190,376
Pa
r
k
s
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e
p
a
r
t
m
e
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t
56
4
,
1
7
6
-
-
-
-
-
-
-
- - 564,176
Li
b
r
a
r
y
71
0
,
5
0
9
-
-
-
-
-
-
-
- - 710,509
Sw
i
m
m
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g
p
o
o
l
48
,
4
3
7
-
-
-
-
-
-
-
- - 48,437
Zo
n
i
n
g
34
0
,
9
1
4
-
-
-
-
-
-
-
- - 340,914
Ca
p
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t
a
l
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u
t
l
a
y
21
7
,
8
4
3
-
-
-
-
-
-
-
- - 217,843
An
i
m
a
l
c
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n
t
r
o
l
97
,
1
0
7
-
-
-
-
-
-
-
- - 97,107
Do
n
a
t
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d
f
u
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d
s
-
-
-
-
-
-
36
,
0
0
9
-
- - 36,009
To
t
a
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x
p
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t
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r
e
s
4,
4
0
7
,
9
9
4
85
,
2
4
2
21
9
,
2
1
7
91
3
,
3
3
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-
36
,
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6
3
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5,972,955
EX
C
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S
S
(
D
E
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I
C
I
E
N
C
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)
O
F
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E
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E
R
E
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P
E
N
D
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T
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S
(1
,
7
1
2
,
3
1
7
)
70
,
3
6
2
2,
3
7
9
,
3
7
0
24
,
4
7
5
55
,
6
5
4
-
(4
,
9
8
2
)
-
(6)
(
3
0
2
,
3
4
4
)
510,212
OT
H
E
R
F
I
N
A
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C
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(
U
S
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S
)
Sa
l
e
o
f
a
s
s
e
t
s
25
,
9
5
7
-
-
-
-
-
-
-
- - 25,957
Op
e
r
a
t
i
n
g
t
r
a
n
s
f
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r
s
-
i
n
1,
8
5
8
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3
0
5
-
39
,
0
3
0
-
-
-
-
8,0
0
0
- 250,000 2,155,335
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e
r
a
t
i
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g
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r
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n
s
f
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r
s
-
o
u
t
(8
,
0
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0
)
-
(
2
,
2
9
7
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3
6
6
)
-
(4
0
,
0
0
0
)
(1
0
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)
(1
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0
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)
-
- - (2,346,466)
To
t
a
l
o
t
h
e
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f
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n
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n
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g
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s
1,
8
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2
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(
2
,
2
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3
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0
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0
0
0
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(1
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(1
,
0
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8,0
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- 250,000 (165,174)
NE
T
C
H
A
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G
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I
N
F
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A
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A
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C
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S
16
3
,
9
4
5
70
,
3
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12
1
,
0
3
4
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,
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5
15
,
6
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,
9
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8,0
0
0
(6)
(52,344) 345,038
FU
N
D
B
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A
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,
B
E
G
I
N
N
I
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R
3
7
0
,
3
0
2
17
2
,
6
8
2
1,
2
6
1
,
4
7
2
10
8
,
5
3
9
19
,
1
0
5
10
0
59
,
4
5
9
-
6
4
9
1
,
0
4
3
2,482,708
FU
N
D
B
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A
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,
E
N
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A
R
53
4
,
2
4
7
$
24
3
,
0
4
4
$
1,
3
8
2
,
5
0
6
$
13
3
,
0
1
4
$
34
,
7
5
9
$
-
$
53
,
4
7
7
$
8,0
0
0
$
- $ 438,699 $ 2,827,746 $
- 6
6
-
Cit
y
o
f
B
l
a
i
r
,
N
e
b
r
a
s
k
a
C
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T
A
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B
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r
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d
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e
p
t
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m
b
e
r
3
0
,
2
0
1
8
Se
e
i
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d
e
p
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a
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'
s
r
e
p
o
r
t
Federal
CFDA Federal
Number Expenditures
U.S. Department of Transportation:
Direct Programs:
Highway Safety Cluster:
In-Car Camera Mini-Grant Contract 20.616 405d-18-05-2-01 3,500$
Total Highway Safety Cluster 3,500
National Priority Safety:
Click it or Ticket Campaign 20.600 402-18-27-05 4,442
Total U.S. Department of Transportation 7,942
Total expenditures of federal awards 7,942$
- 67 -
See notes to the schedule of expenditures of federal awards and independent auditor's report.
City of Blair, Nebraska
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2018
Grant/Project NumberFederal grantor/pass-through grantor/program title
City of Blair, Nebraska
NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the year ended September 30, 2018
- 68 -
NOTE A. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1. General
The accompanying schedule of expenditures of federal awards (the Schedule)
presents the activity of all federal financial assistance programs of City of Blair,
Nebraska (the City). The City’s reporting entity is defined in note A to the City’s
financial statements. Federal financial assistance received directly from federal
agencies, as well as passed through other governmental agencies, is included on
the Schedule.
The accompanying schedule presents total expenditures for each federal award
program in accordance with U.S. Office of Management and Budget (OMB) Title
2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards
(Uniform Guidance). Federal program titles are reported as presented in the
Catalog of Federal Domestic Assistance (CFDA) whenever possible.
2. Basis of Accounting
The Schedule is prepared on the accrual basis of accounting.
3. De Minimis Indirect Cost Rate
The City has elected not to charge the 10% de minimis indirect cost rate to its
federal award programs
NOTE B. CONTINGENCIES
The City receives funds under various federal grant programs, and such awards are to be
expended in accordance with the provisions of the various grants. Compliance with the
grants is subject to audit by various government agencies, which may impose sanctions in
the event of noncompliance. Management believes that is has complied with all aspects
of the various grant provisions and the results of adjustments, if any, relating to such
audits would not have any material financial impact.
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, 2018, 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 February 15, 2019.
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 West Broadway | Council Bluffs, IA 51503 | T 712-322-5503
An Independent Member of CPA Associates International
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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
February 15, 2019
City of Blair, Nebraska
SCHEDULE OF FINDINGS AND RESPONSES
For the year ended September 30, 2018
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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 : None noted
Significant deficiencies identified: None noted
Noncompliance material to financial statements noted: None noted
II. FINDINGS - FINANCIAL STATEMENTS
None noted
City of Blair, Nebraska
SUMMARY SCHEDULE OF PRIOR AUDIT FINDINGS
For the year ended September 30, 2018
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II. FINDINGS - FINANCIAL STATEMENTS
None noted
III. FINDINGS AND QUESTIONED COSTS—MAJOR FEDERAL AWARD PROGRAMS
None noted