Loading...
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 Ln O O N 0 M WW p m p W Q F- -� Q w m LLU) LL L0 0 rO f Q F- W W U aW NW O LL c a) E U) 0 z W V) NNC*1Ln�t0o0000000d'(0 N MCDT T UnN0(0000M NT W Lo t,- CD M M M M 0I MM It 0)t__ • 04 t- O r- 00 Ln Ln000MM (0LONLf) It0 d t� O 00 It M�MCOO)OLnt`TrOO Ln000MO00N0)00 tl- MIt 0)1- O O O Ln 0000OT!� M LoLO)000N 0) M f� O O ►- TON(0TL()t-(60pM<t00 MTTMN"—"vd T 00 0) Nr O M O O coOd'MM00 M N It N 04 T T LO 110 (0 (U cn y� HT EF} EA EFT b4 �� 0 Qi O CO CO T �- U() CO N tiN O O LO a! OT W'Z U) O.0 j i i i i i i i T d O c0 i i m' N _ N e co� f- U NT O co O co 0) N co N U C a) = m Q EFT ffT EA EF} WN "U .. a — - — - —-—- —— NNNm'd'o0wwWLnd (0 — N O � N LONO(OU')OML Z coI--mZom0U-)F--I-- 'd• C Lo MmWI-MMLn (0 LnNgt�NO) T M c Mf�M(00)OL()t�Tf�0C0 LnO0 Mc)00N000I-m , � O M 00006)TCOMOt� _O �>- T O N (O T Ln 1,- 00 00 M It 00 co 00 L() Lo 0) 00 0) 0) 0 W cD t O N W N 00 O t -- Ln a) U M - .00 O Q U7 N ca CO� 0 T T O <- e O WN U i i i i L i i i 0 i O i i O N to (U C C U�C: (N N `� v O o U U) c ER EST (�T EFT G °ZS N CD Mt N ti O ti N O .O co N t d7 V Ln 00 �t C O O 0) a) U C .O t, M 1 O �' 1 1 (: 1 1 N N a) .S >+ a)N'' Ln o CL 00 ° e aeiro co > U EFT Ef} EFT U) > eon aci X co 0 N .� O .� + ,� cu U U d N 00 TO N 0) T N co T N co O d NO 0) T N O t- L() X TTX O N N N (rU U U i c Q) O '� I -T NT TCO ti O NO 0) M M M r- N a) 3 L 'e �� cn U) fA a) U Wco O 10 Ln M I t� <t N L(� I Q> t� 00 d O O.t O (6 (U ci U NT NT co ((0(0 M m `cam ro 0 a) fll C v d ��a=0 �Qh- ZZ 601 UT Go!)- En cn -— — - — — — —.. -- —— NwN01,-Wr-MT(0 W 0fl — 00 0)N T_ N a) U) mwrl_Nmmm(00 mwm mr,-MN(�O(0(0MTW O O 0) 0)M 't I- M N M �- O 00 ti 00 tl 0) M d Lli t_ 00 (O i ti N d' r_ Ln e d Lo T N 0) N .����m m �W I()TTMN C ti v dt M W `. T `. �..� .. M N v v L �} EfT EF} 6FT (A? c a) (n O 0 a) a) > > F- Q Q Q a) W C: o iii a) >Q', w Z O �-. 1p U) W E > a) c > > C . -6(l)) c _°o C) a) 0 m c � O Cr) o <�U Q� ° (� Q m Q a c m rn 04- of - e E c �,E a)� Y U U L L H O O L) c.- a) 0 c (U a) o U , N E - E E_a)"�•-c,Eca)c0 0 0 0 CO 0 0." m-0 3 o c o" a)� 0<cL aJ(ANQOcnY a) m(A li> c a) E U) 0 z W V) 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