FY2005 Audit Report CityCITY OF BLAIR, NEBRASKA
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
SEPTEMBER 30, 2005
CITY OF BLAIR, NEBRASKA
TABLE OF CONTENTS
Page
MANAGEMENT'S DISCUSSION AND ANALYSIS
1-13
INDEPENDENT AUDITORS' REPORT
14-15
STATEMENTS:
Statement of Net Assets
16
Statement of Activities
17
Balance Sheet — Governmental Funds
18
Governmental Funds — Reconciliation of the Balance
Sheet of Governmental Funds to the Statement of
Net Assets
19
Statement of Revenues, Expenditures, and Changes
In Fund Balance — Governmental Funds
20-21
Reconciliation of the Statement of Revenues,
Expenditures and Changes in Fund Balances of
Governmental Funds
22
Statement of Revenues, Expenditures, and Changes
In Fund Balance — Budget and Actual — General Fund
23
Statement of General Fund Revenues — Budget and Actual
24
Statement of General Fund Expenditures — Budget and
Actual —
Administration Department
25
Contingency Allowance
26
Police Department
27
Fire Department
28
Park Department
29
Library
30
Swimming Pool
31
Zoning
32
Animal Control
33
Donated Funds
34
Statement of Revenues, Expenditures and Changes
In Fund Balance — Budget and Actual —
Debt Service Fund
35
Street Fund
36-37
Keno Fund
38
CITY OF BLAIR, NEBRASKA
TABLE OF CONTENTS
Page
Statement of Net Assets — Proprietary Funds
39-40
Combined Statement of Revenues, Expenses and
Changes in Net Fund Assets — Proprietary Fund Types
41
Statement of Revenues, Expenses and Changes in Net
Fund Assets — Budget and Actual —
Water Fund
42-43
Sewer Fund
44
Statement of Changes in Cash Flow — Water Fund and
Sewer Fund
45
NOTES TO FINANCIAL STATEMENTS
46-59
Internal Control and Compliance over Financial Reporting
60-61
I
I ,
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
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, 2005. It
should be read in conjunction with the accompanying basic financial statements. All amounts in
this discussion, unless otherwise indicted, are expressed in thousands of dollars.
FINANCIAL HIGHLIGHTS
• The assets of the City of Blair exceeded it's liabilities at the close of the fiscal year ending
September 30, 2005 by $19.5 million (net assets). Of this amount, $6.7 million
i (unrestricted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
The City of Blair's total net assets increased by $3.3 million for the year ended September
30, 2005. The increase in net assets can be attributed to grants, water revenue and sales
tax revenue used to purchase capital assets.
R As of September 30, 2005, the City of Blair's governmental funds reported combined
ending fund balances of $7.7 million, an increase of $1.2 million in comparison with the
prior fiscal year.
• While the total Street fund balance declined $34,000 for the fiscal year ended September
30, 2005, the fund balance for the General Fund and Debt Service Fund increased
$700,000 and $474,000 respectively during the same period.
• The City's total debt increased by $356,000 during the current fiscal year. The City
increased its outstanding Registered Warrants by $531,000 for construction projects in
2005 and retired $1.1 million of general and revenue bond debt.
OVERVIEW OF FINANICAL STATEMENTS
The discussion and analysis serves as an introduction to the City, of Blair's basic financial
statements. The City of Blair's basic financial statements are comprised of three components,
government -wide financial statements, fund financial statements, and notes to the financial
statements. This report also contains other supplementary information in addition to the basic
financial statements themselves.
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
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 Assets presents information on all of
the City of Blair's assets and liabilities, with the difference between the two reported as net
assets. Over time, increases or decreases in net assets may serve as a useful indicator of
whether the financial position of the City of Blair is improving or deteriorating. The Statement of
Net Assets 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 and
earned but not used vacation leave). Both the Statement of Net assets and the Statement of
Activities, are prepared utilizing the accrual basis of accounting as opposed to the modified
accrual basis.
F
In the Statement of Net Assets and the Statement of Activities, the City is divided into two kinds
E
of activities:
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.
K
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
Reporting the City's Most Significant Funds
Fund Financial Statements
The fund financial statements provide detailed information about the most significant funds -not
the City as a whole. Some funds are required to be established by state laws and by bond
covenants. However, the City 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 two kinds of funds — governmental and proprietary -
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
government 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 Assets and the Statement of
Activities) and governmental funds is detailed in a reconciliation following the fund financial
statements.
The City of Blair maintains four 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 and the Keno Fund all of which are considered to
be major funds.
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 Assets 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.
3
E.
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
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.
THE CITY AS A WHOLE — Government -wide Financial Analysis
The City's combined net assets were $19.5 million as of September 30, 2005. Analyzing the net
assets and net expenses of governmental and business -type activities separately, the business
type activities net assets were $8.8 million. This analysis focuses on the net assets (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 assets (52.0%) reflects its investment in capital assets
(e.g., land, infrastructure, buildings, machinery, and equipment), less any related debt used to
acquire those assets that is still outstanding. The City uses these capital assets to provide
services to citizens; consequently, these assets are not available for future spending. Although
the City's investment in its capital assets its reported net of related debt, it should be noted that
the resources needed to repay this debt must be provided from other sources, since the capital
assets themselves cannot be used to liquidate these liabilities.
SEE TABLE 1
4
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2005
TABLE I
SUMMARY OF NET ASSETS
(AMOUNTS EXPRESSED IN THOUSANDS)
Current and other assets
Capital assets
Total assets
Long term liabilities
Outstanding
Other liabilities
Total liabilities
NET ASSETS:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
TOTAL NET ASSETS
Governmental
Activities
2004 2005
$ 7,200 $ 9,070
5,919 7,234
13,119 16,304
3,350
3,760
1,189
1,864
4,539
5,624
2,014
2,944
1,945
2,371
4,621
5,365
$ 8,580
$ 10,680
4
Business -type
Activities
2004
2005
$ 1,602
$ 1,994
15,903
16,062
17,505
18,056
9,016 8,436
861 824
9,877 9,260
6,317 7,036
437 408
874 1,352
$ 7,628 $ 8,796
Total
Primary
Government
2004
2005
$ 8,802
$ 11,064
21,822
23,296
30,624
34,360
12,366
12,196
2,050
2,688
14,416
14,884
8,331
9,980
2,382
2,779
5,495
6,717
$ 16,208
$19,476
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
Governmental activities: Governmental activities increased -the City's net assets by
$2,100,213.
Key elements of this increase are as follows:
• The increase is in part due to the City investing in capital assets at a rate that exceeded
the depreciation on the City's assets. The cost of the equipment and other assets are
depreciated over their estimated useful lives. Depreciation on the City's assets was
$1,315,836 less than the City's capital outlay expenditures for the year.
• The increase is also partially due to increased special assessments, grants and sales tax
receipts.
All governmental activities were financed in part by tax revenue. Administration and
streets were the most effective at covering their costs due to fees charged, operating
grants, capital grants, and contributions. .
The comparative financial analysis is provided in for additional information. The City's general
revenues increased when compared to the prior year by 12.8% or $600,000. The primary
reason for this increase was due to increased special assessments, grants and sales tax
revenue. The assessed value of the property in the City increased by $47,000 or 1.3% as
compared to the prior year while the City property tax rate of $0.3566 per $100 assessed
valuation increased by 5%.
Business -type Activities
Revenues of the City's business -like activities were $4.5 million for the fiscal year ending
September 30, 2005. Expenses for the City's business -like activities were $3.4 million for the
year, resulting in net revenues of $1.1 million. The net revenues are the result of several
factors, including the following:
• The City's water system recorded charges for services of $3.7 million which exceeded
expenses of $2.8 million by $.9 million. The most significant expenses of the water fund
were $.4 million for the purchase of chemicals and $.7 million in salaries and benefits.
SEE TABLE 2
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND'ANALYSIS (CONTINUED)
SEPTEMBER 30, 2005
k
TABLE 2
CHANGES IN NET ASSETS
(AMOUNTS EXPRESSED THOUSANDS)
REVENUES:
Program Revenues:
Charges for services
Operating grants and
contributions
Capital grants and
contributions
General revenues:
Taxes
Interest income
Other
Total revenues
EXPENSES:
Administration
Police
i, Fire
Parks
Library
Donated fund
Swimming pool
Zoning
Animal control
Streets
Keno
Interest expense
Water
Sewer
Total expense
Increase in net assets
before transfers
Transfers
Increase in net assets
Net Assets, October 1
Net Assets, September 30
i
Governmental
Activities
2004 2005
$ 304
$ 348
208
182
183
420
3,329
3,599
298
297
1,060
1,393
5,382
6,239
0
0
645
579
1,066
1,118
124
128
401
397
212
230
39
198
55
58
68
75
75
76
797
858
39
37
186
184
0
0
0
0
3,707
3,938
1,675
2,301
(263)
(201)
1,412
2,100
7,167
8,580
$ 8,579
10,680
7
Business -type
Activities
2004 2005
$ 3,802 $ 4,343
6
0
0
0
0
0
27
31
5
0
3,840
4,374
55
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,721
2,732
619
675
3,340 3,407
500
967
263
201
763
1,168
6,865
7,628
$ 7,628
8,796
Total
Primary
Government
2004 2005
$ 4,106 $ 4,691
214
182
183
420
3,329
3,599
325
328
1,065
1,393
9,222
10,613
645
579
1,066
1,118
124
128
401
397
212
230
39
198
55
58
68
75
75
76
797
858
39
37
186
184
2,721
2,732
619
675
7,047
7,345
2,175 3,268
0 0
2,175 3,268
14,032 16,208
$ 16,207 19,476
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year 2005, the City has nearly $37.2 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 additions and
deductions) of $2.7 million or 8% 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 2005 were $1.6 million.
SEE TABLE 3
.9
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
GOVERNMENTAL ACTIVITIES:
Land
Buildings
Street infrastructure
Equipment
Total Governmental
BUSINESS -TYPE ACTIVITIES:
Water assets
Sewer assets
Total Business -type
TOTALS
TABLE 3
Capital Assets
Balance
Balance
Sept. 30,
Sept. 30,
2004
Additions
Dispositions
2005
$ 170,111
$ 0
$ 0
$ 170,111
5,444,876
41,630
0
5,486,506
1,351,603
1,540,360
0
2,891,963
2,461,455
30,880
(26,954)
2,465,381
_
9,428,045
1,612,870
(26,954)
11,013,961
20,448,868
430,195
(12,160)
20,866,903
4,794,647
451,017
(3,040)
5,242,624
25,243,515
881,212
(15,200)
26,109,527
$ 34,671,560
$ 2,494,082
$ (42,154)
$ 37,123,488
9
e
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
Debt
At year-end, the City had $5.2 million in General Obligation Bonds and register warrants
outstanding as compared to $4.3 million at the end of the prior fiscal year, an increase of 21%
as shown in Table 4. This added debt was used for street and utility district improvements
including the unassessed city share of those costs.
SEE TABLE 4
10
c
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2005
TABLE 4
OUTSTANDING DEBT
11
Balance
Balance
Sept. 30,
Sept. 30,
Description
2004
Additions
Deductions
2005
General Registered Warrants
$ 354,068
$ 531,224
$ 0
$ 885,292
General Obligation Bonds
3,905,000
940,000
555,000
4,290,000
Water Revenue Bonds
8,650,700
0
525,000
8,125,700
Sewer Revenue Bonds
935,000
0
35,000
900,000
TOTAL
$ 13,844,768
$ 1,471,224
$ 1,115,000
$ 14,200,992
11
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
THE CITY'S FUNDS
At the close of the City's fiscal year on September 30, 2005, the governmental funds of the City
reported a combined fund balance of $7.7 million. This ending balance includes a reduction in
fund balance of $34,000 in the City's Street Fund. The primary reason for the Street Fund's
reduction is the excess of paving projects over funding sources.
General Fund Budgetary Highlights
Water Revenues (378,914) Revenues projected to be higher from
scheduled Cargill, Inc. contract did not meet
expectations.
12
Variance
Positive
Account
(Negative)
Reason
Sales Tax
163,655
Better than expected business recovery in
the City.
Business license and permits
59,172
Higher than usual number of building
permits due to storm repairs.
Federal Grants - Street
(285,198)
Less progress was made on qualifying
projects than planned.
Storm Damage
(38,075)
Costs due to 2005 storm damage.
Pool Expense
(4,242)
Painting the pool was more than
provided for in the budget
Donated Funds
(71,455)
More revenues came in for designated
projects than planned, consequentially
more were disbursed for those projects.
Special Assessment Income
258,034
More improvement districts were completed
than expected.
Water Revenues (378,914) Revenues projected to be higher from
scheduled Cargill, Inc. contract did not meet
expectations.
12
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2005
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
Current economic conditions point towards a continued growth in the community that will allow
for a stable budget environment.
The property tax request for fiscal year 05/06 was increased 1.2%, which with the valuation
increase left the levy per valuation dollar the same as the prior year. The increase was to
stabilize necessary cash reserves and cover costs subject to inflation.
Continued future stability of the City property tax rate has been improved beyond fiscal year
2005 by the favorable 2005 vote to extend the City's sales tax for street improvements, public
safety, economic development, payment of debt service, and general property tax relief.
CONTACTING THE CITY'S FINANCIAL MANAGEMENT
This financial report is designed to provide our citizens, taxpayers, customers, and investors
�i 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.
13
EDWARD W SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET
u BOX 486
BLAIR, NEBRASKA 68008
Honorable Mayor and Members
of the City Council
City of Blair, Nebraska
Gentlemen:
January 4, 2006
"Independent Auditor's Report"
OFFICE:
(402)426-4080
FAX:
(402)426-9340
I have audited the accompanying financial statements of the governmental activities, the
business -type activities, and each major fund, as of and for the year ended September 30,
2005, which collectively comprise the City's basic financial statements as listed in the table
of contents. These financial statements are the responsibility of the City of Blair's
management. My responsibility is to express opinions on these financial statements based
on my audit.
I conducted my 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 I plan and perform the audit to obtain reasonable assurance
about whether the financial statements are free of material misstatement. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial
statements. An audit also includes assessing the accounting principles used and the
significant estimates made by management, as well as evaluating the overall financial
statement presentation. I believe that my audit provides a reasonable basis for my
opinions.
In my 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, 2005, and
the respective changes in financial position and cash flows where applicable, thereof and
the respective budgetary comparisons for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, I have also issued my report dated
January 4, 2006 on my consideration of the City of Blair's internal control over financial
reporting and on my 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 my testing of internal control over financial reporting and compliance
and the results of that testing, and not to provide an opinion on the internal control over
financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing
the results of my audit.
14
Mayor and Members of
the City Council
January 4, 2006
Page 2
The management's discussion and analysis are not a required part of the basic financial
statements but are supplementary information required by accounting principles generally
accepted in the United States of America. I have applied certain limited procedures, which
consisted principally of -inquiries of management regarding the methods of measurement
and presentation of the required supplementary information. However, I did not audit the
information and express no opinion on it.
J�Q -�) IQ_��
Edward W. Schroeder
Certified Public Accountant
15
$ 3,150,646
1,096,457
118,350
134,464
4,585
2,177,336
2,888,600
385,193
2,891,963
29,593,629
4,252,703
(13,827,237)
1,493,310
34,359,999
1,120,000
503,350
43,769
115,915
20,500
885,292
12,195,700
14,884,526
9,980,551
35,373
108,369
2,470,535
164,309
6,716,336
$ 19,475,473
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2005
Business -
Governmental
Type
ASSETS
Activities
Activities
Cash and Equivalents
$ 2,378,921 $
771,725
Accounts receivable .
291,068
805,389
Due from County Treasurer
118,350
0
Accrued interest receivable
129,987
4,477
Prepaid expense
0
4,585
Special Assessments receivable
2,177,336
0
Contract receivable
2,888,600
0
Capital Assets:
Land
170,111
215,082
Street infrastructure
2,891,963
0
Buildings
5,486,506
24,107,123
Equipment
2,465,381
1,787,322
Accumulated depreciation
(3,779,610)
(10,047,627)
Restricted cash
1,085,546
407,764
Total Assets
16,304,159
18,055,840
LIABILITIES
Current Portion of long-term debt
530,000
590,000
Accounts payable
399,625
103,725
Accrued expenses
30,730
13,039
Accrued interest
0
115,915
Deposits
18,800
1,700
Registered warrants
885,292
0
Bonds payable - more than one year
3,760,000
8,435,700
Total liabilities
5,624,447
9,260,079
NET ASSETS
Investment in capital assets net of
related debt
2,944,351
7,036,200
Restricted for donated projects
35,373
0
Restricted for grant projects
108,369
0
Restricted for debt service
2,062,771
407,764
Restricted for community betterment
164,309
0
Unrestricted
5,364,539
1,351,797
Total Net Assets
$ 10,679,712 $
8,795,761
See Notes to Financial Statements
16
$ 3,150,646
1,096,457
118,350
134,464
4,585
2,177,336
2,888,600
385,193
2,891,963
29,593,629
4,252,703
(13,827,237)
1,493,310
34,359,999
1,120,000
503,350
43,769
115,915
20,500
885,292
12,195,700
14,884,526
9,980,551
35,373
108,369
2,470,535
164,309
6,716,336
$ 19,475,473
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ASSETS
Cash and Equivalents
Receivables
Special assessments
Accrued interest
Other
Due from County Treasurer
Reserved assets - cash
and investments - at cost
Contract receivable - OPPD
TOTAL ASSETS
LIABILITIES
Accounts payable
:
Accrued expenses
Deposits payable
Registered warrants
I;
TOTAL LIABILITIES
FUND BALANCES
CITY OF BLAIR, NEBRASKA
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2005
Debt
General Service Street Keno
Fund Fund Fund Fund
$ 2,364,754 $ 0 $ 14,167 $ 0
Total
$ 2,378,921
0
2,177,336
0
0
2,177,336
129,987
0
0
0
129,987
289,106
0
0
1,962
291,068
92,751
8,553
17,046
0
118,350
145,263
774,413
0
165,870
1,085,546
2,888,600
0
0
0
2,888,600
5,910,461
2,960,302
31,213
167,832
9,069,808
314,613
1,256
80,233
3,523
399,625
14,650
10,983
5,097
0
30,730
18,800
0
0
0
18,800
0
885,292
0
0
885,292
348,063
897,531
85,330
3,523
1,334,447
Reserved for:
Donated funds
35,373
0
0
0
35,373
Grant funds
108,369
0
0
0
108,369
Debt Service
0
2,062,771
0
0
2,062,771
Community betterment
0
0
0
164,309
164,309
Unreserved designated
1,881,339
0
0
0
1,881,339
Unreserved undesignated:
0
0
0
3,537,317
General funds
3,537,317
Special revenue funds -
0
0
(54,117)
0
(54,117)
c (deficit)
r;
TOTAL FUND BALANCES
5,562,398
2,062,771
(54,117)
164,309
7,735,361
M1
TOTAL LIABILITIES AND
FUND EQUITY
$ 5,910,461
$ 2,960,302
$ 31,213
$ 167,832
$ 9,069,808
See Notes to Financial Statements
18
CITY OF BLAIR, NEBRASKA
GOVERNMENTAL FUNDS
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET ASSETS
SEPTEMBER 30, 2005
Fund Balances of Governmental Funds
Amounts reported for governmental activities in the Statement
of Net Assets are difference because:
Capital assets, net of depreciation, are not current financial
resources and are not included in the governmental funds.
Bonds payable are not a current financial resource. Therefore,
they are not included in the governmental funds.
Net Assets of Governmental Activities
See Notes to Financial Statements
19
$ 7,735,361
7,234,351
(4,290,000)
$ 10,679,712
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Debt
Total
General
Service Street
Keno
Governmental
Fund
Fund Fund
Fund
Funds
REVENUES:
Taxes
$ 3,186,742
$ 111,868 $ 274,009 $
0
$ 3,572,619
Street revenues
0
0 965,139
0
965,139
Keno proceeds
0
0 0
79,942
79,942
Charges for services
268,267
0 0
0
268,267
- Special assessment
0
634,034 0
0
634,034
Special assessment interest
0
74,061 0
0
74,061
Interest income
294,745
1,627 243
0
296,615
Other revenues
285,202
63,175 0
0
348,377
Total revenues
4,034,956
884,765 1,239,391
79,942
6,239,054
EXPENDITURES:
Administration
524,177
2,304 0
0
526,481
Contingency allowance
5,108
0 0
0
5,108
Police Department
1,089,462
0 0
0
1,089,462
Fire Department
84,490
0 0
0
84,490
Parks Department
382,790
0 0
0
382,790
Library
223,129
0 0
0
223,129
Swimming pool
37,292
0 0
0
37,292
r Zoning
74,697
0 0
0
74,697
Animal control
64,579
0 0
0
64,579
Donated funds
F
197,981
0 0
0
197,981
r
Keno expense
0
0 0
21,188
21,188
Community betterment
0
0 0
15,500
15,500
Street expense
0
0 761,270
0
761,270
Street capital outlay
0
0 1,569,610
0
1,569,610
Debt service:
�
Bonding costs
0
14,954 0
0
14,954
Redemption of bonds
0
555,000 0
0
555,000
Bond interest
0
184,636 0
0
184,636
Total expenditures
2,683,705
756,894 2,330,880
36,688
5,808,167
REVENUES ES OVE R (UNDER)
EXPENDITURES
$ 1,351,251
$ 127,871 $ (1,091,489) $
43,254
$ 430,887
-continued -
See Notes to Financial Statements
z
,
20
I CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
t
-continued-
R General
Fund
REVENUES OVER (UNDER)
EXPENDITURES $ 1,351,251
OTHER FINANCING
SOURCES (USES):
Debt Total
Service Street Keno Governmental
Hind Fund Fund Funds
$ 127,871 $ (1,091,489) $ 43,254 $ 430,887
Bond Proceeds
0
940,000
Sale of assets
0
0
Operating transfers - in
0
0
Operating transfers - out
(654,483)
(594,017)
REVENUES AND OTHER
FINANCING SOURCES
OVER (UNDER)
EXPENDITURES AND
OTHER USES
696,768
473,854
FUND BALANCE
0 0 940,000
0 0 0
1,057,567 0 1,057,567
0 (10,000) (1,258,500)
(33,922) 33,254 1,169,954
t� September 30, 2004 4,865,630 1,588,917 (20,195) 131,055 6,565,407
FUND BALANCE
September 30, 2005 $ 5,562,398 $ 2,062,771 $ (54,117) $ 164,309 $ 7,735,361
See Notes to Financial Statements
21
CITY OF BLAIR, NEBRASKA
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Net Change in Fund Balance - Total Governmental Funds
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 is allocated over their estimated useful lives as
depreciation expense or are allocated to the appropriate
functional expense when the cost is below the capitalization
threshold. This activity is reconciled as follows:
Cost of assets capitalized
Depreciation expense
Capital asset disposals, net
Bonds payable are reported as expenditures when made
and as revenue when repaid in the governmental funds.
However, there is no impact in the Statement of Activities
when loans are made or repaid. This amount represents
the change in the long-term loans receivable.
Change in Net Assets of Governmental Activities
See Notes to Financial Statements
22
$ 1,169,954
1,612,870
(297,034)
(577)
(385,000)
$ 2,100,213
Variance
Favorable
(Unfavorable)
$ 223,697
81,512
13,975
166,662 _
485,846
(3,350)
24,892
36,316
(2,830)
(6,955)
14,676
(4,242)
3,751
13,776
(70,455)
$ 491,425
0
0
466,139
$ 957,564
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
`
BUDGET AND ACTUAL
,_.
GENERALFUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
'4
F
Budget
Actual
REVENUES:
Taxes
$ 2,963,045
$ 3,186,742
Charges for services
186,755
268,267
Interest income
280,770
294,745
Other revenues
118,540
285,202
Total revenues
3,549,110
4,034,956
EXPENDITURES:
Administration
520,827
524,177
Contingency allowance
30,000
5,108
Police Department
1,125,778
1,089,462
Fire Department
81,660
84,490
Parks Department
375,835
382,790
Library
237,805
223,129
Swimming pool
33,050
37,292
Zoning
78,448
74,697
Animal control
78,355
64,579
Donated funds
127,526
197,981
Total expenditures
2,689,284
2,683,705
REVENUES OVER (UNDER)
EXPENDITURES
$ 859,826
$ 1,351,251
OTHER FINANCING SOURCES (USES):
Bond proceeds
0
0
Operating transfers - in
0
0
Operating transfers - out
(1,120,622)
(654,483)
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES
(260,796)
696,768
FUND BALANCE - September 30, 2004
4,865,630
4,865,630
FUND BALANCE - September 30, 2005
$ 4,604,834
$ 5,562,398
See Notes to Financial Statements
C
23
Variance
Favorable
(Unfavorable)
$ 223,697
81,512
13,975
166,662 _
485,846
(3,350)
24,892
36,316
(2,830)
(6,955)
14,676
(4,242)
3,751
13,776
(70,455)
$ 491,425
0
0
466,139
$ 957,564
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND REVENUES
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2005
See Notes to Financial Statements
24
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES; -
Taxes:
Property tax
$ 1,000,405
$ 956,590
$ (43,815)
Motor vehicle tax
144,000
169,450
25,450
Sales tax
1,495,000
1,658,655
163,655
Occupation tax
42,000
45,675
3,675
Other taxes
49,800
95,975
46,175
State aid
66,840
66,422
(418)
Franchise tax
165,000
193,975
28,975
Total
2,963,045
3,186,742
223,697
Charges for services:
Business licenses and permits
81,555
140,727
59,172
Library
12,500
14,160
1,660
Equipment rental
2,000
4,798
2,798
Cemetery lots
19,000
20,615
1,615
Grave openings
24,000
21,050
(2,950)
Towing
0
13,112
13,112
Other fees and charges
27,500
32,635
5,135
Sales of fireworks
15,000
15,000
0
RV park
5,200
6,170
970
Total
186,755
268,267
81,512
INTEREST INCOME
280,770
294,745
13,975
OTHER REVENUES:
State aid -library
1,500
1,376
(124)
State grants
8,000
6,400
(1,600)
Federal grants
3,000
66,253
63,253
Donations
2,500
109,823
107,323
Reimbursements
82,540
98,502
15,962
Sale of assets
0
0
0
Other miscellaneous revenue
21,000
2,848
(18,152)
Total
118,540
285,202
166,662
TOTAL REVENUES
$ 3,549,110
$ 4,034,956
$ 485,846
See Notes to Financial Statements
24
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL - ADMINISTRATION DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
PERSONAL SERVICES:
Salaries
Social Security
Employee's insurance
Retirement
OPERATING EXPENSES:
Bank fees
Legal
Auditing
Civil defense
Consulting - landfill monitoring
Custodial services
Postage
Printing and publications
Training
Dues
Election expenses
Programming
City utilities
Telephone
Travel expense
Insurance and bonds
California Bend
Maintenance
Tree removal
City cleanup
Planning grant costs
Car expense
Community betterment
County Treasurer's fees
Collection fees
Miscellaneous
Storm damage
SUPPLIES
RENTALEXPENSES:
Office equipment
CAPITAL OUTLAY:
Office equipment
TOTALS
Budget
$ 138,762
9,800
71,610
5,000
Actual
$ 127,839
9,157
67,135
3,922
Variance
Favorable
(Unfavorable)
$ 10,923
643
4,475
1,078
0
564
(564)
22,600
21,425
1,175
2,000
2,379
(379)
800
750
50
30,000
42,463
(12,463)
5,200
4,800
400
6,000
2,246
3,754
6,000
7,774
(1,774)
6,000
5,946
54
10,500
14,819
(4,319)
4,000
3,197
803
6,100
5,886
214
6,000
4,984
1,016
6,800
6,919
(119)
7,500
7,904
(404)
7,750
8,499
(749)
12,000
12,800
(800)
19,000
12,292
6,708
18,000
18,072
(72)
10,000
6,759
3,241
0
4,900
(4,900)
5,000
4,520
480
7,000
0
7,000
9,905
10,234
(329)
68,000
55,534
12,466
2,100
58
2,042
0
38,075
(38,075)
14,900
10,672
4,228
2,500
1,653
847
0
$ 520,827 $ 524,177
See Notes to Financial Statements
25
0
$ (3,350)
CONTINGENT RESERVE
Library computer
'Police H/AC unit
TOTAL
CITY OFBLAIR, NEBRASKA
STATEMENT OFGENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
CONTINGENCY ALLOWANCE
FOR THE YEAR ENDED SEPTEMBER 30,2005
$ 807
See Notes boFinancial Statements
26
Variance
Favorable
PERSONAL SERVICES:
Salaries
Social Security
Employee's insurance
Retirement
OPERATING EXPENSES:
Legal
Auditing
Postage
Printing and publications
Programming
Drug task force
Training
Telephone
Travel
Utilities
Custodial
Dues
Insurance
MAPA testing
Maintenance
Medical exams
Car expense
Wellness/crime stoppers
Towing
Miscellaneous
SUPPLIES:
Dog support
Supplies
Gas and oil
Uniforms
Ammunition and range
Safety Equipment/Training
RENTALEXPENSES.
CAPITAL OUTLAY:
Office equipment
Motor vehicles
TOTALS
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
POLICE DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Budget
$ 682,618
47,500
188,060
40,800
Actual
$ 660,511
48,403
180,266
34,158
Variance
Favorable
(Unfavorable)
$ 22,107
(903)
7,794
6,642
4,200
3,760
440
1,300
1,647
(347)
800
832
(32)
2,000
839
1,161
2,000
2,709
(709)
8,800
7,845
955
2,600
2,245
355
6,800
6,851
(51)
2,000
2,002
(2)
9,000
8,673
327
3,800
3,150
650
900
420
480
15,800
17,254
(1,454)
1,400
1,799
(399)
23,700
20,099
3,601
1,800
1,193
607
1,000
162
838
3,800
3,093
707
0
5,865
(5,865)
1,100
2,281
(1,181)
2,000
1,489
511
11,800
12,034
(234)
13,000
15,730
(2,730)
13,000
15,859
(2,859)
2,000
1,860
140
2,300
2,524
(224)
400
342
58
6,500
0
6,500
23,000
23,567
(567)
$ 1,125,778 $
1,089,462
$ 36,316
See Notes to Financial Statements
27
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
FIRE DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Actual
3,262
780
366
22
3,077
19,002
20,996
20,634
46
677
60
7,875
2,009
5,640
44
0
Variance
Favorable
(Unfavorable)
$ (162)
20
(66)
28
423
5,998
(1,496)
(6,834)
254
1,223
50
(175)
(409)
(1,640)
(44)
0
$ 84,490 $
See Notes to Financial Statements
28
Budget
OPERATING EXPENSES
Workman's Compensation
$ 3,100
Legal
800
Auditing
300
Printing and publications
50
Telephone
3,500
Utilities
25,000
Insurance
19,500
Maintenance
13,800
Travel
300
Training
1,900
Miscellaneous
110
SUPPLIES
Operating supplies
7,700
Gas and oil
1,600
Safety equipment
4,000
Miscellaneous
0
CAPITAL OUTLAY
Equipment
0
TOTALS
$ 81,660
Actual
3,262
780
366
22
3,077
19,002
20,996
20,634
46
677
60
7,875
2,009
5,640
44
0
Variance
Favorable
(Unfavorable)
$ (162)
20
(66)
28
423
5,998
(1,496)
(6,834)
254
1,223
50
(175)
(409)
(1,640)
(44)
0
$ 84,490 $
See Notes to Financial Statements
28
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
PARK DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2005
h
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 141,265 $
133,483
$ 7,782
Social Security
10,300
9,926
374
Employee's insurance
38,725
36,999
1,726
Retirement
6,080
6,150
(70)
OPERATING EXPENSES:
Le al
g
1,625
1,560
65
Auditing
450
549
(99)
Programming
500
701
(201)
Printing and publications
500
273
227
Training
950
340
610
Dues
400
300
100
Travel
150
92
58
Utilities
12,900
13,366
(466)
Telephone
2,800
2,625
175
Fireworks
5,600
5,600
0
Insurance
7,350
9,107
(1,757)
Maintenance
30,400
33,475
(3,075)
Contract mowing
47,800
60,612
(12,812)
Miscellaneous
840
115
725
Youth program
15,000
15,000
0
SUPPLIES
Operating supplies
5,800
11,275
(5,475)
Gas and oil
3,000
3,641
(641)
L
Small tools
1,000
888
112
Playground equipment
f
5,500
2,263
3,237
RENTAL EXPENSE
18,000
15,333
2,667
P CAPITAL OUTLAY
Other improvements
8,000
12,382
(4,382)
Equipment
10,900
6,735
4,165
TOTALS
$ 375,835 $
382,790
$ (6,955)
See Notes to Financial Statements
29
n
CITY OF BLAIR, NEBRASKA,
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
r
LIBRARY
FOR THE YEAR ENDED SEPTEMBER 30,
2005
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 117,960 $
113,882
$ 4,078
Social Security
8,800
8,646
154
Employee's insurance
22,070
17,772
4,298
Retirement
6,000
6,029
(29)
OPERATING EXPENSES:
Legal
800
780
20
Auditing
425
549
(124)
Postage
800
771
29
Dues
300
35
265
Printing and publications
200
144
56
Utilities
10,000
11,494
(1,494)
Telephone
2,000
1,789
211
Travel
600
430
170
Training
800
480
320
Insurance
2,750
3,557
(807)
Maintenance
9,000
8,336
664
Custodial services
3,000
2,520
480
SUPPLIES
Supplies
11,400
6,221
5,179
Library materials
40,900
39,694
1,206
CAPITAL OUTLAY
Office equipment
0
0
0
TOTALS
$ 237,805 $
223,129
$ 14,676
F
See Notes to Financial Statements
30
P
a
OPERATING EXPENSES:
Auditing
Utilities
Insurance
Maintenance
Miscellaneous
SUPPLIES
Chemicals
Miscellaneous
CAPITAL OUTLAY
TOTALS
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
SWIMMING POOL
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Budget
Actual
$ 300
$ 366
4,000
4,675
1,850
2,389
19,500
26,504
100
40
7,000
3,318
300
0
$ 33,050
Variance
Favorable
(Unfavorable)
$ (66)
(675)
(539)
(7,004)
60
3,682
300
0
$ 37,292 $ (4,242)
See Notes to Financial Statements
31
See Notes to Financial Statements
32
Variance
Favorable
(Unfavorable)
$ 4,182
(20)
1,143
20
(56)
(33)
(802)
186
(244)
120
217
0
(137)
0
(1,026)
201
e
$ 3,751
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
ZONING
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Budget
Actual
PERSONAL SERVICES:
Salaries
$ 50,200 $
46,018
Social Security
3,500
3,520
Employee's insurance
9,598
8,455
Retirement
2,800
2,780
OPERATING EXPENSES:
Legal
1,400
1,456
Auditing
150
183
Printing and publications
1,200
2,002
Travel
800
614
Training
1,100
1,344
Dues
450
330
Telephone
850
633
Car expense
3,600
3,600
Uniforms
0
137
Miscellaneous
0
0
SUPPLIES
Office supplies
1,200
2,226
Books and maps
1,600
1,399
CAPITAL OUTLAY
Equipment
0
0
TOTALS
$ 78,448 $
74,697
See Notes to Financial Statements
32
Variance
Favorable
(Unfavorable)
$ 4,182
(20)
1,143
20
(56)
(33)
(802)
186
(244)
120
217
0
(137)
0
(1,026)
201
e
$ 3,751
PERSONAL SERVICES:
Salaries
Social Security
Employee's insurance
Retirement
OPERATING EXPENSES:
Legal
Auditing
Postage
Dues
Contract mowing
Printing and publications
Travel
Training
Utilities
Telephone
Insurance
Maintenance
Miscellaneous
SUPPLIES
Gas and oil
Supplies
Uniforms
Miscellaneous
CAPITAL OUTLAY
Equipment
TOTALS
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
ANIMAL CONTROL
FOR THE YEAR ENDED SEPTEMBER 30, 2005
I
u
$ 78,355 $ 64,579
See Notes to Financial Statements
33
$ 13,776
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 42,560
$ 32,473
$ 10,087
3,200
2,365
835
14,785
13,592
1,193
2,100
2,091
9
900
780
120
150
183
(33)
250
15
235
50
150
(100)
400
440
(40)
300
242
58
100
0
100
300
0
300
4,500
5,100
(600)
1,300
1,086
214
740
772
(32)
1,020
1,861
(841)
200
0
200
1,100
1,264
(164)
3,400
1,624
1,776
1,000
541
459
0
0
0
I
u
$ 78,355 $ 64,579
See Notes to Financial Statements
33
$ 13,776
Library
Disc golf project
Police
Employee appreciation
Animal control
Vets tribute plaza
Vets field project
Skateboard park
TOTAL
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
DONATED FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Budget
$ 18,551
300
1,745
3,931
2,999
100,000
0
0
$ 127,526
Actual
$ 247
2,738
540
2,545
500
188,949
1,462
1,000
$ 197,981
See Notes to Financial Statements
34
Variance
Favorable
(Unfavorable)
$ 18,304
(2,438)
1,205
1,386
2,499
(88,949)
(1,462)
(1,000)
$ (70,455)
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
DEBT SERVICE FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
REVENUES:
Property taxes
Other taxes
Special assessments
Special assessment interest
Developers down payment
Interest income
Other revenues
Total revenues
EXPENDITURES:
Administration
Bonding costs
Redemption of bonds
Bond interest
Total expenditures
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING SOURCES (USES):
Bond proceeds
Operating transfers - in
Operating transfers - out
REVENUES AND OTHER FINANCING
SOURCES OVER (UNDER) EXPENDITURES
AND OTHER SOURCES
FUND BALANCE - September 30, 2004
FUND BALANCE - September 30, 2005
Budget
$ 111,605
11,250
376,000
58,000
0
1,000
0
557,855
4,105
10,000
555,000
205,832
$ (217,082)
1,000,000
335,228
(600,000)
518,146
1,588,917
$ 2,107,063
Actual
$ 101,962
9,906
634,034
74,061
63,175
1,627
0
884,765
2,304
14,954
555,000
184,636
756,894
$ 127,871
940,000
0
(594,017)
473,854
1,588,917
$ 2,062,771
See Notes to Financial Statements
35
Variance
Favorable
(Unfavorable)
$ (9,643)
(1,344)
258,034
16,061
63,175
627
0
326,910
1,801
(4,954)
0
21,196
18,043
$ 344,953
(60,000)
(335,228)
5,983
$ (44,292)
I
E_
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - STREET FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Var. Favorable
Budget
Actual
(Unfavorable)
'
REVENUES:
Highway allocation
$ 540,000
$ 499,290
$ (40,710)
Property taxes
222,200
205,679
(16,521)
Other taxes
40,400
49,854
9,454
Incentive payment
3,000
3,000
0
State maintenance agreement
21,700
21,798
98
In -Lieu of tax
8,000
7,953
(47)
Homestead exemption
0
10,523
10,523
Federal grants
665,000
379,802
(285,198)
Other grants
90,000
40,639
(49,361)
Interest on investments
100
243
143
Other income
10,400
20,610
10,210
Total revenues
1,600,800
1,239,391
(361,409)
EXPENDITURES:
Salaries
251,375
257,636
(6,261)
FICA
18,500
18,453
47
Retirement
15,800
16,072
(272)
Employee insurance
94,640
87,228
7,412
Legal
2,100
5,090
(2,990)
Auditing
2,700
3,477
(777)
Office expense
1,790
21764
(974)
Dues
200
272
(72)
Utilities
6,200
5,624
576
Telephone
2,000
1,725
275
Travel
600
2,327
(1,727)
Training
1,600
247
1,353
w
Insurance
20,400
22,749
(2,349)
Maintenance
34,200
28,262
5,938
Street lighting
130,000
122,877
7,123
County fees
2,200
2,188
12
Car expense
1,800
1,200
600
Contract mowing
13,000
14,502
(1,502)
Gas, diesel, and oil
16,000
17,223
(1,223)
Materials and supplies
100,400
131,124
(30,724)
Rental
23,500
20,230
3,270
r
Capital outlay:
Equipment
0
0
0
Buildings
0
29,249
(29,249)
Street improvements
2,297,394
1,540,361
757,033
Total expenditures
3,036,399
2,330,880
705,519
REVENUES OVER (UNDER) EXPENDITURES
$ (1,435,599)
$ (1,091,489)
$ 344,110
- continued -
See Notes to Financial Statements
36
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - STREET FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
- continued -
Budget Actual
REVENUES OVER (UNDER) EXPENDITURES $ (1,435,599) $ (1,091,489)
OTHER FINANCING SOURCES (USES):
Bond proceeds 0 0
Sale of assets 0 0
Operating transfers - in 1,410,394 1,057,567
Operating transfers - out 0 0
REVENUES OVER (UNDER) EXPENDITURES (25,205) (33,922)
FUND BALANCE - September 30, 2004 (20,195) (20,195)
FUND BALANCE - September 30, 2005 $ (45,400) $ (54,117)
See Notes to Financial Statements
37
Var. Favorable
(Unfavorable)
$ 344,110
0
0
(352,827)
0
$ (8,717)
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
KENO FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Budget Actual
GROSS PROCEEDS $ 0 $ 813,152
PRIZES:
Declared Prizes
Unclaimed Wins
Net Prizes Paid
NET HOLD
ALLOWABLE EXPENSES PAID:
Lottery Operator's Commission
NET KENO PROCEEDS
EXPENSES PAID BY CITY:
State Taxes
Other Expenses
TOTAL EXPENSES PAID
PROCEEDS AVAILABLE FOR DISTRIBUTION
TRANSFER FROM (TO) PRIZE RESERVES
COMMUNITY BETTERMENT - Transfers
COMMUNITY BETTERMENT - Direct
NET AFTER TRANSFERS
Beginning Keno Account
Fund Balance
Interest
Reimbursements
KENO ACCOUNT FUND BALANCE
0
0
0
0
0
$ 75,000
16,000
2,600
18,600
56,400
0
(25,000)
(145,000)
(113,600)
131,055
100
621,202
(1,673)
619,529
193,623
(113,841)
$ 79,782
16,263
0
16,263
63,519
(4,925)
(10,000)
(15,500)
33,094
131,055
160
0
$ 813,152
621,202
(1,673)
619,529
193,623
(113,841)
$ 4,782
(263)
2,600
2,337
7,119
(4,925)
15,000
129,500
146,694
0
60
$ 17,555 $ 164,309 $ 146,754
PRIZE RESERVE FUND RECONCILIATION
FOR THE REPORTING PERIOD
Beginning Reserve Balance $ 32,318
Increase in reserve 4,925
Withdrawals from reserve 0
Ending Reserve Balance (deficit) $ 37,243
See Notes to Financial Statements
38
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2005
ASSETS
- continued -
See Notes to Financial Statements
39
Water
Sewer
Total
CURRENT ASSETS:
Cash
$ 734,852
$ 36,873
$ 771,725
Accounts receivable -
user fees
680,398
124,991
805,389
Accrued interest
receivable
2,432
2,045
4,477
Prepaid expenses
2,668
1,917
4,585
Total current assets
1,420,350
165,826
1,586,176
NON-CURRENT ASSETS:
Restricted Assets:
Bond and interest
sinking fund cash
and investments
337,160
70,604
407,764
PROPERTY:
Land
165,207
49,875
215,082
Plant/buildings
19,811,341
4,295,782
24,107,123
Equipment
890,355
896,967
1,787,322
Accumulated depreciation
(7,010,094)
(3,037,533)
(10,047,627)
Property - net
13,856,809
2,205,091
16,061,900
TOTAL ASSETS
$ 15,614,319
$ 2,441,521
$ 18,055,840
- continued -
See Notes to Financial Statements
39
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2005
- continued -
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Current portion of long-term debt
$ 545,000
Accounts payable
89,270
Deposits payable
1,700
Accrued interest
100,311
Accrued expenses
9,529
Total current liabilities
745,810
NON-CURRENT LIABILITIES:
Revenue bonds payable
7,580,700
Total liabilities
8,326,510
NET ASSETS:
Investment in capital assets
net of related debt
5,731,109
Restricted for Debt Service
337,160
Unrestricted (deficit)
1,219,540
Net Assets
7,287,809
TOTAL LIABILITIES AND
NET ASSETS
$ 15,614,319
Sewer
$ 45,000
14,455
0
15,604
3,510
78,569
855,000
933,569
1,305,091
70,604
132,257
1,507,952
$ 2,441,521
See Notes to Financial Statements
40
Total
$ 590,000
103,725
1,700
115,915
13,039
824,379
8,435,700
9,260,079
7,036,200
407,764
1,351,797
8,795,761
$ 18,055,840
CITY OF BLAIR, NEBRASKA
COMBINED STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET FUND ASSETS
PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30. 2005
See Notes to Financial Statements
41
Water
Sewer
Total
OPERATING REVENUES:
User fees
$ 3,586,761
$ 679,307
$ 4,266,068
Sale of merchandise
32,088
0
32,088
Forfeited discounts
14,850
0
14,850
Other
20,593
9,703
30,296
Total revenues
3,654,292
689,010
4,343,302
EXPENSES:
Personal services
672,210
245,923
918,133
Operating expenses
667,045
168,306
835,351
Materials and supplies
459,410
58,775
518,185
Rental expense
2,008
816
2,824
Depreciation
569,818
151,987
721,805
Total expenses
2,370,491
625,807
2,996,298
OPERATING INCOME (LOSS)
1,283,801
63,203
1,347,004
OTHER REVENUE (EXPENSE):
Federal grants
0
0
0
Interest income
27,286
3,369
30,655
Interest expense
(362,008)
(34,075)
(396,083)
Bonding costs
0
(14,850)
(14,850)
Operating transfers - in
0
263,596
263,596
Operating transfers - out
(62,663)
0
(62,663)
CHANGE IN NET ASSETS
886,416
281,243
1,167,659
NET ASSETS - Sept. 30, 2004
6,401,393
1,226,709
7,628,102
NET ASSETS - Sept. 30, 2005
$ 7,287,809
$ 1,507,952
$ 8,795,761
See Notes to Financial Statements
41
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET FUND ASSETS
BUDGET AND ACTUAL - WATER FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
OPERATING REVENUES:
User fees
Sale of merchandise
Forfeited discounts
Other
Total revenues
EXPENSES:
G
Personal services:
Salaries
FICA
Workman's compensation
j HAL insurance
Retirement (city share)
Unemployment and disability
Pension administration
Total
Operating expenses:
Bank fees
Legalfees
Auditing
Consultants/engineering
Postage
Printing and publications
Computer programming
Schools, travel, and training
Dues
Utilities
Telephone
Vehicle insurance
Liability insurance
Buildings and contents insurance
Radio maintenance
Office equipment maintenance
Motorized equipment maintenance
Building maintenance
Major maintenance
Contingent reserve
Electronic maintenance
Car expense
Gateway development
Other operating expense
Contract mowing
Total
$ 3,965,675
15,000
12,000
6,900
3,999,575
479,615
33,800
10,800
138,690
26,000
3,730
1,500
694,135
0
10,500
4,800
30,000
8,200
900
5,500
7,600
1,600
350,000
5,500
2,800
12,000
5,000
800
1,000
8,000
30,000
124,000
5,000
12,500
1,200
25,000
1,700
8,000
$ 661,600
Actual
$ 3,586,761
32,088
14,850
20,593
3,654,292
483,973
35,094
11,105
109,772
26,227
4,546
1,493
672,210
1,065
10,182
4,202
43,188
8,538
544
6,628
5,401
2,019
328,329
5,136
4,792
15,225
1,278
97
923
12,801
39,103
145,046
0
6,701
853
20,000
818
4,176
$ 667,045
See Notes to Financial Statements
continued - 42
Variance
Favorable
(Unfavorable)
$ (378,914)
17,088
2,850
13,693
(345,283)
(4,358)
(1,294)
(305)
28,918
(227)
816
7
23,557
(1,065)
318
598
(13,188)
(338)
356
(1,128)
2,199
(419)
21,671
364
(1,992)
(3,225)
3,722
703
77
(4,801)
(9,103)
(21,046)
5,000
5,799
347
5,000
882
3,824
$ (5,445)
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET FUND ASSETS
BUDGET AND ACTUAL - WATER FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
continued -
EXPENSES:
Materials and supplies:
Office supplies
Janitorial supplies
Shop supplies
Chemicals
Meters
Gas, oil and diesel
Uniforms
Small tools
Payment to OPPD
Other materials and supplies
Total
Rental expense
Total expenses
OPERATING INCOME (LOSS) BEFORE
DEPRECIATION
DEPRECIATION
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES):
Federal grants
Interest income
Interest expense
Bonding costs
Operating transfers - in
Operating transfers - (out)
CHANGE IN NET ASSETS
NET ASSETS - Sept. 30, 2004
NET ASSETS - Sept. 30, 2005
$ 5,500
400
2,000
400,000
10,000
7,500
2,800
3,000
1,000
5,200
437,400
3,500
1,796,635
2,202,940
2,202,940
0
23,000
(368,995)
0
100,000
(200,000)
6,401,393
$ 8,158,338
Actual
$ 4,846
216
2,478
414,374
9,990
9,326
3,123
4,676
3,910
6,471
459,410
2,008
1,800,673
1,853,619
(569,818)
1,283,801
0
27,286
(362,008)
0
0
(62,663)
886,416
6,401,393
$ 7,287,809
See Notes to Financial Statements
43
Variance
Favorable
(Unfavorable)
$ 654
184
(478)
(14,374)
10
(1,826)
(323)
(1,676)
(2,910)
(1,271)
(22,010)
1,492
(2,406)
(347,689)
(569,818)
(919,139)
0
4,286
6,987
0
(100,000)
137,337
$ (870,529)
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
BUDGET AND ACTUAL - SEWER FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Var. Favorable
(Unfavorable)
$ (693)
8,703
8,010
OPERATING REVENUES:
User fees
Other revenue
Total revenues
EXPENSES:
Personal services:
Salaries
FICA
Employee insurance
Retirement
Total
Operating expenses:
Bankfees
Legal
Auditing
Consultants/engineering
Postage
Printing and publication
Computer programming
School, travel, and training
Dues
Utilities
Telephone
Insurance
Maintenance
Car expense
Contract mowing
Total
Materials and supplies
Rental expense
Total expenses
OPERATING INCOME (LOSS) BEFORE
DEPRECIATION
DEPRECIATION
OPERATING INCOME (LOSS)
NON-OPERATING REVENUE (EXPENSE):
Interest income
Interest expense
Bonding costs
Transfers - in
CHANGE IN NET ASSETS
NET ASSETS - Sept. 30, 2004
NET ASSETS - Sept. 30, 2005
Budget
Actual
$ 680,000
$ 679,307
1,000
9,703
681,000
689,010
229,393
178,160
181,044
12,800
13,195
45,335
41,034
10,600
10,650
246,895
245,923
0
552
2,250
1,950
3,600
4,575
22,500
33,230
6,000
4,695
300
119
3,000
840
3,900
2,459
200
300
43,000
39,188
2,000
1,522
13,400
15,871
61,900
60,901
900
432
8,000
1,672
63,600
1,600
483,045
197,955
0
197,955
168,306
58,775
816
473,820
215,190
(151,987)
63,203
3,300
3,369
(56,862)
(34,075)
(15,000)
(14,850)
100,000
263,596
229,393
281,243
1,226,709
1,226,709
$ 1,456,102 $
1,507,952
See Notes to Financial Statements
44
(2,884)
(395)
4,301
(50)
972
(552)
300
(975)
(10,730)
1,305
181
2,160
1,441
(100)
3,812
478
(2,471)
999
468
6,328
2,644
4,825
784
9,225
17,235
(151,987)
(134,752)
69
22,787
150
163,596
-$ 51,850
CITY OF BLAIR, NEBRASKA
STATEMENT OF CHANGES IN CASH FLOW
WATER FUND AND SEWER FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2005
Water Sewer Total
CASH FLOWS FROM OPERATING ACTIVITIES:
Cash received from customers
$ 3,517,794
$ 686,167
$ 4,203,961
Cash payments to suppliers
(1,363,148)
(293,129)
(1,656,277)
Cash payments to employees
(479,615)
(181,044)
(660,659)
Net Cash Provided by Operating Activities
1,675,031
211,994
1,887,025
CASH FLOWS FROM NON -CAPITAL
FINANCIAL ACTIVITIES:
Operating transfers in 0 263,596 263,596
Operating transfers out (62,663) 0 (62,663)
Net Cash Used For Noncapital
Financing Activities (62,663) 263,596 200,933
CASH FLOWS FROM CAPITAL AND
27,286
3,012
30,298
RELATED FINANCING:
0
0
0
Acquisition of capital assets
(430,195)
(451,017)
(881,212)
Repayment of long-term debt
(525,000)
(35,000)
(560,000)
Interest payment long-term debt
(368,995)
(41,846)
(410,841)
Bonding costs
0
(14,850)
(14,850)
Net Cash Used For Capital And
280,749
Cash and Equivalents, October 1
419,388
Related Financing Activities
(1,324,190)
(542,713)
(1,866,903)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from interest earnings
27,286
3,012
30,298
Proceeds from federal grants
0
0
0
Proceeds from restricted assets
0
29,396
29,396
Net Cash Provided by Investing Activities
27,286
32,408
59,694
(Decrease) increase in accounts payable
(42,185)
Net Increase (Decrease) in Cash and Cash
391,230
Net Cash Provided by Operating Activities
$ 1,675,031
Equivalents
315,464
(34,715)
280,749
Cash and Equivalents, October 1
419,388
71,588
490,976
Cash and Equivalents, September 30
$ 734,852
$ 36,873
$ 771,725
Reconciliation of operating income to net cash
provided by (used for) operating activities:
Operating income
$ 1,283,801
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
569,818
(Increase) decrease in receivables
(136,498)
(Increase) decrease in prepaid expenses
95
(Decrease) increase in accounts payable
(42,185)
Total Adjustments
391,230
Net Cash Provided by Operating Activities
$ 1,675,031
$ 63,203
151,987
(2,843)
(394)
41
148,791
$ 211,994
See Notes to Financial Statements
45
$ 1,347,004
721,805
(139,341)
(299)
(42,144)
540,021
$ 1,887,025
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Blair conform to accounting principles generally accepted i
United States of America as applicable to governments. The Governmental Accounting Standar
Board (GASB) is the accepted standard setting body for governmental accounting and financial
reporting principles. The City has implemented GASB Statement No. 34 and these statements a
- presented according to those requirements. The following is a summary of the significant policie
A. Description of the Reporting Entity
This report includes all funds of the City of Blair (the "primary government"). The City of Blair
City) operates under a Board of Trustees form of government and provides the following sere
public safety, streets, culture and recreation, public improvements, planning and zoning, wat
sewer services, and general administrative services.
B. 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 s.
self -balancing accounts that comprise its assets, liabilities, fund equity, revenues, and
expenditures. Governmental resources are allocated to and accounted for in individual fund&
based upon the purposes for which they are to be spent and the means by which spending
activities are controlled.
Government -Wide Financial Statements
The City Government -Wide Financial Statements include a Statement of Net Assets and a
Statement of Activities (including Changes in Net Assets). These statements are prepared us
the standards of the Governmental Accounting Standards Board (GASB), General Accepted
Accounting Principles (GAAP), as well as FASB pronouncements issued through November
1989. These statements present summaries of Governmental Activities for the City. Fiducial
activities of the City are not included in these statements.
These statements are presented on an "economic resources" measurement focus and the a-
basis of accounting. Accordingly, all of the City's assets and liabilities, including capital asset-----,,,
infrastructure as well as long-term debt, are included in the accompanying Statement of Net
Assets. The Statement of Activities presents changes in net assets. Under the accrual basi w
accounting, revenues are recognized in the period in which they are earned while expenses
recognized in the period in which the liability is incurred. The Statement of Activities demons -
the degree to which the direct expenses of a given function are offset by program revenues.
k Direct-oxpenses 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 contribi
% 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 ® -
particular function. Taxes and other items not properly included among program revenues a
reported instead as general revenues.
46
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER, 30, 2005
NOTE #1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The accounting policies of the City of Blair conform to accounting principles generally accepted in the
United States of America as applicable to governments. The Governmental Accounting Standards
Board (GASB) is the accepted standard setting body for governmental accounting and financial
reporting principles. The City has implemented GASB Statement No. 34 and these statements are
presented according to those requirements. The following is a summary of the significant policies.
A. Description of the Reporting Entity
This report includes all funds of the City of Blair (the "primary government"). The City of Blair (the
City) operates under a Board of Trustees 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.
B. Basis of Accounting/Measurement Focus
The accounts of the City are organized on the basis of funds, each of which is considered a
f 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 purposes for which they are to be spent and the means by which spending
activities are controlled.
Government -Wide Financial Statements
The City Government -Wide Financial Statements include a Statement of Net Assets and a
Statement of Activities (including Changes in Net Assets). 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 Activities for the City. Fiduciaiy
activities of the City are not included in these statements.
These statements are presented on an "economic resources" measurement focus and the accrual
basis of accounting. Accordingly, all of the City's assets and liabilities, including capital assets and
infrastructure as well as long-term debt, are included in the accompanying Statement of Net
Assets. The Statement of Activities presents changes in net assets. Under the accrual basis of
accounting, revenues are recognized in the period in which they are earned while expenses are
E_ 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
r reported instead as general revenues.
46
F
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
- continued -
All internal balances in the Statement of Net Assets have been eliminated. The purpose of
transfers between funds was to record proper allocation of expenses.
The City applies all applicable Financial Accounting Standards Board (FASB) pronouncements
issued on or before November 30, 1989 in accounting and reporting for its proprietary operations.
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.
( Proprietary funds distinguish operating revenues and expense from nonoperating items.
Operating revenues and expense 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 nonoperating revenues and expenses.
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 net assets as presented in these
statements to the net assets presented in the Government -Wide Financial Statements. The City
has presented all major funds that met the qualifications of GASB Statement No. 34.
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 net current assets. 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. Accordingly, revenues
are recorded when received in cash, except that revenues subject to accrual (generally 60 -days
after year-end) are recognized when due. The primary sources susceptible to accrual are property
tax, sales tax, transient occupancy tax, investment income, and grant revenues.
Expenditures are generally recognized under the modified accrual basis of accounting when the
related fund ability is incurred. An exception to this general rule is principal and interest on
general long-term debt which is recognized when due.
47
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
- continued - SEPTEMBER 30, 2005
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 the another fund.
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.
C. Budgetary Policy and Control
Budgetary Basis of Accounting
The City's legally adopted budget is not in conformity with generally accepted accounting
principles. 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. There are no significant
differences between the budgeted basis of accounting and the generally accepted basis. The
Board sets the property tax levy needed to support the coming years budget in August of each
year and submits its budget as required by State statute.
Budgetary Control
Each funds 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 constitutes 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,
2005.
D. Deposits and Investments
The City's cash and cash equivalents are considered to be cash on hand, demand deposits and
short-term investments with original maturities of three months or less from the date of acquisition.
The statutes of the State of Nebraska require that local governmental units follow the
"prudent man" rule with deposits. The City requires that it has deposits one hundred and five
percent secured by collateral valued at market or par whichever is lower less the amount of
the Federal Deposit Insurance Corporation Insurance. The carrying amount of deposits and
bank balances at September 30, 2005, were $4,643,956 and $4,727,306 respectively.
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
- continued -
Deposits consist of savings accounts and certificates of deposit with current maturities. The
deposits are entirely insured or collateralized with securities held by the entity's agent. There
is no difference between the deposits fair value and the presented amounts.
I Investments are shown at cost. There are no significant differences in cost and fair values at
i
September 30, 2005.
E. Capital Assets
Capital assets, which include land, machinery and equipment (furniture, vehicles, etc.) and
r infrastructure assets (street systems, storm drains, etc.), are reported in Governmental Activities
e column of the Government -Wide Financial Statements. Capital assets are defined by the City as
assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated or annexed capital assets
are recorded at estimated market value at the date of donation or annexation.
The costs of normal maintenance and 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. The requirements to capitalize and depreciate these assets has been applied as of
October 1, 2003. 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
Machinery and Equipment 10
Vehicles 5
w
Buildings 40
Street system 40
F. 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 not considered collectible as of September 30, 2005.
The City's December 31, 2004 valuation was $383,923,591. The levy for the City for
the year ending September 30, 2005 was .3566 per $100 of value. The total tax levy
was $1,352,150. 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 services provided.
49
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
- continued -
G. 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 Assets. 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.
H. Compensated Absences
The City of Blair does not accrue compensated absences because the amount cannot be
reasonably estimated.
I. Restricted Assets
}
The City of Blair has sponsored a licensed Keno operation and the restricted funds are the
accumulation of net proceeds to be used only for community betterment projects.
The City of Blair has received donations toward specific projects. The undispursed funds with
specific restrictions are accounted for in the donated fund balance.
Grants have been received by the City which are required to be spent on certain projects. The
grant fund balance represents these restricted funds not spent at September 30, 2005.
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 debt service fund represent assets available only for
payment of general obligation debt or related expenses.
The Water and Sewer restricted cash is a sinking fund required by conditions of Revenue Bonds.
These funds will become unrestricted in the year 2010.
M
CITY OF BLAIR, NEBRASKA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #2 - CAPITAL ASSETS - GOVERNMENTAL FUNDS
Depreciation expense was charged
Balance
to functions as follows:
Sept. 30, 2005
Sept. 30, 2004
Additions
Capital Assets Not Depreciated
$ 170,111
$ 0
Other Capital Assets:
Parks
33,552
Street infrastructure
1,351,603
1,540,360
Buildings
5,444,876
41,630
Equipment
2,461,455
30,880
Total Other Capital Assets
9,257,934
1,612,870
Less Accumulated depreciation:
Street Infrastructure
(751)
(53,203)
Buildings
(1,434,012)
(136,125)
Equipment
(2,074,189)
(107,706)
Total Accumulated depreciation
(3,508,952)
(297,034)
Other Capital Assets Net
5,748,982
1,315,836
Governmental Activities
Capital Assets, net
$ 5,919,093
$ 1,315,836
Depreciation expense was charged
Balance
to functions as follows:
Sept. 30, 2005
Administration
$ 37,526
Police
47,652
Fire
43,882
Parks
33,552
Library
5,641
Swimming pool
20,806
Zoning
0
Animal control
11,089
Streets
96,886
Total depreciation
$ 297,034
51
0 (53,954)
0 (1,570,137)
26,376 (2,155,519)
26,376 (3,779,610)
(578) 7,064,240
$ (578) $ 7,234,351
Balance
Deletions
Sept. 30, 2005
$ 0
$ 170,111
0
2,891,963
0
5,486,506
(26,954)
2,465,381
(26,954)
10,843,850
0 (53,954)
0 (1,570,137)
26,376 (2,155,519)
26,376 (3,779,610)
(578) 7,064,240
$ (578) $ 7,234,351
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #3 — RISK MANAGEMENT
The City of Blair is exposed to various risks of loss related to torts; theft, damage to and destruction of
assets; errors and omissions; injuries to employees; and natural disasters. These risks are covered
by the purchase of commercial insurance. The City assumes liability for any deductibles and claims in
excess of coverage limitations. Settled claims from these risks have not exceeded commercial
insurance coverage in any of the past three fiscal years.
NOTE #4
In the Government -Wide financial statements net assets are classified in the following categories:
Invested in Capital Assets
This category groups all capital assets, including infrastructure, into one component of net assets.
Accumulated depreciation on these assets reduces this category.
Restricted Net Assets
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 Assets
This category represents the net assets of the City that are not restricted for any project or other
purpose.
In the Fund financial statements, reserves and designations segregate portions of fund balance that
are either not available or have been earmarked for specific purposes. The various designations are
established by actions of the City Council and Management and can be increased, reduced, or
eliminated by similar actions. Following is a summary of reservations of fund balance and
components of unreserved fund balance at September 30, 2005.
Governmental Funds Business -Type Activities
Reserved for:
Donated Funds $ 35,373 $ 0
Grant Funds 108,369 0
Debt Service 2,062,771 407,764
Community Betterment 164,309 0
Unreserved, designated for:
Street projects and 0
Debt Service $1,881,339 0
52
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #5 - LONG TERM DEBT
312,325
744,914
281,949
768,839
250,465
793,343
217,896
818,442
184,208
854,155
149,311
WATER DEBT:
112,630
Balance
74,654
765,165
Balance
391,297
Interest
Sept 30,
Sept 30,
Dated Description
Rate
2004 Additions
Deductions
2005
08/09/00 DEQ Bonds
4.03%
$ 6,665,700 $
0
$ 75,000
$ 6,590,700
06/15/00 Refunding Bonds
4.70-5.55%
1,985,000
0
450,000
1,535,000
TOTAL WATER
$ 8,650,700 $
0
$ 525,000
$ 8,125,700
4.
F,
SEWER DEBT:
12/15/04 Revenue Bonds
2.05-4.25%
935,000
0
35,000
900,000
TOTAL SEWER
x
$ 935,000 $
0
$ 35,000
$ 900,000
Annual
Principal Requirements
For Water Bonds
Year Ending September 30,
continued
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
TOTAL
53
Principal Interest
$ 545,000 $ 343,921
721,549
312,325
744,914
281,949
768,839
250,465
793,343
217,896
818,442
184,208
854,155
149,311
880,499
112,630
842,497
74,654
765,165
38,953
391,297
7,884
$ 8,125,700 $ 1,974,196
CITY OF BLAIR '
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #5 - LONG TERM DEBT - continued
Annual Principal Requirements
For Sewer Bonds
Year Ending September 30,
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
TOTAL
Principal Interest
$ 45,000 $
30,747
55,000
29,653
55,000
28,346
60,000
26,862
60,000
25,137
65,000
23,150
60,000
21,028
65,000
18,792
65,000
16,371
70,000
13,770
75,000
10,904
80,000
7,764
75,000
4,550
70,000
1,487
$ 900,000 $ 258,561
Sinking fund requirements for Water and Sewer debt were a reserve of $407,764
at September 30, 2005. Net working capital of Water and Sewer funds is
$674,540 and $87,257, respectively. All liabilities on the balance sheet of
governmental funds are current.
54
I
` CITY OF BLAIR, NEBRASKA
NOTES TO FINANCIAL STATEMENTS
SCHEDULE OF CHANGES IN GOVERNMENTAL BONDED INDEBTEDNESS
FOR THE YEAR ENDED SEPTEMBER 30, 2005
NOTE #5 - LONG TERM DEBT - continued
continued
55
Balance
Balance
Interest
Sept 30,
Sept 30,
Dated
Description
Rate
2004
Additions
Deductions
2005
03/01/95
Various purpose
5.10-5.95%
$ 35,000
$ 0
$ 35,000
$ 0
01/15/96
Various purpose
5.90-4.80%
185,000
0
90,000
95,000
06/01/98
Various purpose
4.10-4.85%
170,000
0
40,000
130,000
- 04/15/99
Various purpose
3.50-4.40%
870,000
0
160,000
710,000
10/15/00
Various purpose
4.65-5.5%
790,000
0
50,000
740,000
06/01/02
Public safety
2.75-5.45%
720,000
0
25,000
695,000
r
12/15/02
Various purpose
1.60-4.25%
1,135,000
155,000
980,000
07/19/05
Various purpose
2.90-4.25%
0
940,000
0
940,000
TOTAL
$ 3,905,000
$ 940,000
$ 555,000
$ 4,290,000
continued
55
CITY OF BLAIR, NEBRASKA
NOTE TO FINANCIAL STATEMENTS
SCHEDULE OF GENERAL OBLIGATION BONDS
PRINCIPAL AND INTEREST REQUIREMENTS
BY YEAR OF MATURITY
SEPTEMBER 30, 2005
NOTE #5 - LONG TERM DEBT - continued
Year Ending
Seatember 30
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Principal
Requirements
$ 530,000
530,000
515,000
485,000
315,000
325,000
335,000
200,000
205,000
215,000
225,000
65,000
75,000
75,000
80,000
55,000
60,000
• 111
56
Interest
Requirements
$ 169,657
158,735
138,231
117,498
97,462
84,707
70,954
56,289
47,332
37,697
27,502
20,593
17,340
13,577
9,796
6,128
3,270
68
$ 699,657
688,735
653,231
602,498
412,462
409,707
405,954
256,289
252,332
252,697
252,502
85,593
92,340
88,577
89,796
61,128
63,270
5, ,t
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #6 - ALLOWANCE FOR DOUBTFUL ACCOUNTS
The City uses the direct write-off for uncollectible accounts. The doubtful accounts at
September 30, 2005 were not significant.
NOTE #7 - COMMITTMENTS
The City entered into an inter -local agreement with Papio-Missouri River Natural Resources District
and Washington County, Nebraska on January 13, 2004. The agreement provides that the City will
pay certain Rural Water Project construction costs estimated to be $2.2 million. The payment for the
costs can be bonded or paid on a 10 -year amortization as provided in the agreement. The City will
receive rebates from the Rural Water System based on hookup fees collected and will be selling water
to the system per the agreement. The agreement has a 25 -year term and no revenues were received
under the contract as of September 30, 2005.
NOTE #8 — PENSION PLANS
The City has two pension plans covering substantially all of its employees. Employees
other than policemen are covered by a defined contribution plan. All contributions up to
6% of gross wage in employee contributions and 6% 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 seven
years of service. The plan is a single employer plan with the City maintaining fiduciary
responsibility for it. Contributions for the year ended September 30, 2005, were $139,928.
Contributions are expected to remain relatively level from year to year. The 2005 covered
payroll and total payroll were $1,166,067 and $1,369,908 respectively.
The policemen are covered under a defined benefit plan established by the statutes 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 statutes of the State of Nebraska. The City has
fiduciary responsibility for the plan and it is a single employer plan only. Contributions of
$68,316 for 2005, were 12% of gross wages which compiles with statutory requirements.
The City contributed 6 percent of gross wages and the policemen contributed 6 percent.
The City has no material pension benefit obligations as of September 30, 2005. The City
does expect contributions to remain relatively level from year to year. The contributions
are not actuarially determined. All qualifying police payroll was covered in 2005.
57
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #9 - OTHER ASSET - ELECTRIC PLANT CONTRACT
In April 1984, the City of Blair contracted to sell its electrical transmission and distribution
generating facilities to the Omaha Public Power District. The terms of the agreement
were as follows:
Omaha Public Power District agreed to buy the City of Blair facilities for the sum of
$5,950,000. The terms of payment shall be $1,000,000 payable at the date of the
contract and the balance of $4,950,000 amortized over thirty years at nine percent interest
per annum, with annual payments of $481,815 commencing in April 1985. This contract is
unsecured.
This contract also provided for the Omaha Public Power District to supply electrical
service directly to the City and its residents. The transfer of electrical services was
completed on September 30, 1984.
NOTE #10 - LANDFILL CLOSURE
The City of Blair has closed its landfill operations. All material closing and monitoring
costs were accrued over the remaining life of the landfill. The Landfill closed October 31,
1993 and any remaining monitoring costs will be paid from City funds but are not
anticipated to be material to the financial statements.
NOTE #11 - ACCOUNTS RECEIVABLE - SPECIAL ASSESSMENTS
The City of Blair's special assessments outstanding as of September 30, 2005, are
composed of the following:
2005
Special assessment principle $1,844,795
Special assessments available not levied 332,541
Total Special Assessments Receivable $2,177,336
The delinquent special assessments at September 30, 2005 are 32% of those
outstanding. No Special assessments have been pledged to specific debt.
NOTE #12 - CONCENTRATION OF CREDIT RISK
All of the receivables of the City of Blair proprietary funds and special assessments in the
debt service fund are from the local Blair area therefore creating a concentration of credit
risk. If the Blair area economy was depressed this could have an adverse effect on the
collection of the outstanding accounts receivable. Cargill, Inc. is a major water customer
for the City. Cargill, Inc. represented 70% of water sales for the year ended September
30, 2005.
M
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2005
NOTE #13 — ACCOUNTS RECEIVABLE AND PAYABLE COMPONENTS
Accounts receivable are due from sales taxes and utility customers and accounts payable
are due to vendors. -
NOTE #14 - DEFICIT FUND BALANCE
The City of Blair Street fund had a deficit fund balance of $54,117 as of September 30,
2005. The deficit is the result of street improvements in excess of financing. The Street
Fund had excess expenditures over revenues for the year ended September 30, 2005.
59
EDWARD W SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET OFFICE:
BOX 486 (402) 426-4080
FAX:
BLAIR, NEBRASKA 68008 (402) 426-9340
REPORT ON COMPLIANCE AND ON INTERNAL CONROL OVER FINANCIAL
REPORTING BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
January 4, 2006
To the City Council
Blair, NE 68008
I have audited the financial statements of the governmental activities, the business -type activities, and
each major fund, of the City of Blair, as of and for the year ended September 30, 2005, which
collectively comprise the City of Blair's basic financial statements and have issued our report thereon
dated January 4, 2006. 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.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City of Blair's internal control over financial
reporting in order to determine our auditing procedures for the purpose of expressing our opinions on
the financial statements and not to provide assurance on the internal.control over financial reporting.
However, we noted certain matters involving the internal control over financial reporting and its
operation that we consider to be reportable conditions. Reportable conditions involve matters coming
to our attention relating to significant deficiencies in the design or operation of the internal control over
financial reporting that, in our judgment, could adversely affect the City of Blair's ability to record,
process, summarize, and report financial data consistent with the assertions of management in the
financial statements. The reportable conditions are a lack of separation of duties due to the size of
the City.
A material weakness is a condition in which the design or operation of one or more of the internal
control components does not reduce to a relatively low level the risk that misstatements in amounts
that would be material in relation to the financial statements being audited may occur and not be
detected within a timely period by employees in the normal course of performing their assigned
functions. Our consideration of the internal control over financial reporting would not necessarily
disclose all matters in the internal control that might be reportable conditions and, accordingly, would
not necessarily disclose all reportable conditions that are also considered to be material weaknesses.
However, the reportable condition described above is considered a material weakness.
.E
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of Blair's financial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grants, noncompliance with which could have a direct and material effect
on the determination of financial statement amounts. However, providing an opinion on compliance
with those provisions was not an objective of our audit, and accordingly, we do not express such an
opinion. The results of our tests disclosed no instances of noncompliance that are required to be
reported under Government Auditing Standards.
This report is intended solely for the information and use of management, Board of Directors, and
federal awarding agencies and pass-through entities and is not intended to be and should not be used
by anyone other than these specified parties.
Edward W. Schroeder
Certified Public Accountant
61