FY2006 Audit Report CityCITY OF BLAIR, NEBRASKA
FINANCIAL STATEMENTS
FOR THE YEAR ENDED
SEPTEMBER 30 2006
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
Paqe
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
Schedule of Findings and Responses
62
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
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, 2006. 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 its liabilities at the close of the fiscal year ending
September 30, 2006 by $22.2 million (net assets). Of this amount, $6.3 million
(unrestricted net assets) may be used to meet the government's ongoing obligations to
citizens and creditors.
F The City of Blair's total net assets increased by $2.7 million for the year ended September
30, 2006. The increase in net assets can be attributed to grants, water revenue and sales
tax revenue used to purchase capital assets.
• As of September 30, 2006, the City of Blair's governmental funds reported combined
ending fund balances of $5.9 million, a decrease of $1.9 million in comparison with the
prior fiscal year.
• While the total Street fund balance increased $62,210 for the fiscal year ended September
30, 2006, the fund balance for the General Fund and Debt Service Fund decreased
$707,764 and $1.3 million respectively during the same period.
• The City's total debt increased by $1.7 million during the current fiscal year. The City
increased its outstanding Registered Warrants by $963,000 for construction projects in
2006.
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, 2006
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.
In the Statement of Net Assets and the Statement of Activities, the City is divided into two kinds
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.
2
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
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
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
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 $22.2 million as of September 30, 2006. Analyzing the net
assets and net expenses of governmental and business -type activities separately, the business
type activities net assets were $10.5 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 (65.0%) 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 is 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
151
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2006
TABLE 1
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
2005 2006
$ 9,070 $ 8,103
7,234 9,577
16,304 17,680
3,760
3,220
1,864
2,777
5,624
5,997
2,944 5,827
2,371 1,122
5,365 4,734
$ 10,680 $ 11,683
5
Business -type
Activities
2005
2006
$ 1,994
$ 2,290
16,062
19,899
18,056
22,189
8,436
10,187
824
1,521
9,260
11,708
7,036
8,620
408
267
1,352
1,593
$ 8,796
$ 10,480
Total
Primary
Government
2005
2006
$ 11,064
$ 10,393
23,296
29,476
341360
39,869
12,196
13,407
2,688
4,298
14,884
17,705
9,980
14,447
2,779
1,389
6,717
6,327
$ 19,476
$ 22,163
S
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
Governmental activities: Governmental activities increased the City's net assets by
$1,002,980.
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 $2.3
million less than the City's capital outlay expenditures for the year.
• The increase is also partially due to increased developers down payment 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 for additional information. The City's general
revenues increased when compared to the prior year by 2.7% or $162,000. The primary reason
for this increase was due to increased developers down payment revenue. The assessed value
of the property in the City increased by $4.8 million or 1.3% as compared to the prior year while
the City property tax rate of $.3564 per $100 assessed valuation remained unchanged.
Business -type Activities
Revenues of the City's business -like activities were $5.5 million for the fiscal year ending
September 30, 2006. Expenses for the City's business -like activities were $3.8 million for the
year, resulting in net revenues of $1.7 million. The net revenues are the result of several
factors, including the following:
• The City's water system recorded charges for services of $3.9 million, which exceeded
expenses of $3.2 million by $.7 million. The business -type activities also received
transfers from governmental funds of $.9 million. The most significant expenses of the
water fund were $.5 million for the purchase of chemicals and $.7 million in salaries and
benefits.
SEE TABLE 2
Col
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2006
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
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
Governmental
Activities
2005 2006
$ 348
$ 461
182
125
420
397
3,599
3,521
297
333
1,393
1,678
6,239
6,515
0
0
579
587
1,118
1,309
128
198
397
426
230
234
198
109
58
37
75
88
76
76
858
1,329
37
23
184
198
0
0
0
0
3,938
4,614
2,301
1,901
(201)
(898
2,100
1,003
8,580
10,680
$ 10,680
11,683
7
Business -type
Activities
2005 2006
$ 4,343 $ 4,543
0
0
0
0
0
0
31
55
0
0
4,374
4,598
58
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
0
2,732
3,196
675
616
3,407 3,812
. 967
786
201
898
1,168
1,684
7,628
8,796
$ 8,796
$ 10,480
Total
Primary
Government
2005 2006
$ 4,691 $ 5,004
182
125
420
397
31599
3,521
328
388
1,393
1,678
10,613 11,113
579
587
1,118
1,309
128
198
397
426
230
234
198
109
58
37
75
88
76
76
858
1,329
37
23
184
198
2,732
3,196
675
616
7,345
8,426
3,268 2,687
0 0
3,268 2,687
16,208 19,476
$ 19,476 T-2-2,163
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital Assets
At the end of the fiscal year 2006, the City has nearly $44.2 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 $7 million or 19% 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 2006 were $2.7 million.
SEE TABLE 3
0
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
TABLE 3
Capital Assets
0
Balance
Balance
Sept. 30,
Sept. 30,
2005
Additions
Dispositions
2006
GOVERNMENTAL ACTIVITIES:
Land
$ 170,111
$ 20,530
$ 0
$ 190,641
Buildings
5,486,506
0
0
5,486,506
Street infrastructure
2,891,963
2,104,230
0
4,996,193
Equipment
2,465,381
559,572
(177,517)
2,847,436
Total Governmental
11,013,961
2,684,332
(177,517)
13,520,776
BUSINESS -TYPE ACTIVITIES:
Water assets
20,866,903
4,128,934
0
24,995,837
Sewer assets
5,242,624
383,099
0
5,625,723
Total Business -type
26,109,527
4,512,033
0
30,621,560
TOTALS
$ 37,123,488
$ 7,196,365
$ (177,517)
$ 44,142,336
0
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
Debt
At year-end, the City had $5.6 million in General Obligation Bonds and register warrants
outstanding as compared to $5.2 million at the end of the prior fiscal year, an increase of 8% as
shown in Table 4. This added debt was used for street, sidewalk and utility district
improvements including the unassessed city share of those costs. The Water Revenue Bonds
outstanding were increased to finance improvements to the water system including main
extensions and a water tower.
SEE TABLE 4
10
i
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS (CONTINUED)
SEPTEMBER 30, 2006
TABLE 4
OUTSTANDING DEBT
11
Balance
Balance
Sept. 30,
Sept. 30,
Description
2005
Additions
Deductions
2006
General Registered Warrants
$ 885,292
$ 963,252
$ 0
$ 1,848,544
General Obligation Bonds
4,290,000
0
540,000
3,750,000
Water Revenue Bonds
8,125,700
2,298,964
0
10,424,664
Sewer Revenue Bonds
900,000
0
45,000
855,000
TOTAL
$ 14,200,992
$ 3,262,216
$ 585,000
$ 16,878,208
11
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
THE CITY'S FUNDS
At the close of the City's fiscal year on September 30, 2006, the governmental funds of the City
reported a combined fund balance of $5.9 million. This ending balance includes a reduction in
fund balance of $708,000 and $1,250,000 in the City's General and Debt Service funds,
respectively. The primary reason for the General Fund's reduction is the transfer of cash to
other funds for the purchase of capital improvements. The reduction in Debt Service funds was
due to the increase in the registered warrants to finance capital improvements of other funds.
General Fund Budgetary Highlights
Variance
Positive
Account (Negative) Reason
State Grants (218,046) California Bend project not started.
Business license and permits 47,624 Higher than expected number of building
permits.
Other Miscellaneous revenue 75,318 Received unplanned damage recoveries.
Consulting (21,979) Costs due to TIF studies.
Park — Other improvements 310,000 California Bend project not started.
Street Engineering (208,277) More street projects were completed during
the period than expected.
Special Assessment Income 446,713 More improvement districts were completed
than expected.
Water Major Maintenance (164,680) Costs were incurred from unexpected water
system repairs.
12
CITY OF BLAIR, NEBRASKA
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2006
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 06/07 was increased 6.8%, which with the valuation
increase caused the levy per valuation dollar to increase only .14% over 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
2006 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
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 -
BOX 486
BLAIR, NEBRASKA 68008
Honorable Mayor and Members
of the City Council
City of Blair, Nebraska
Gentlemen:
December 18, 2006
"Independent Auditor's Report"
OFFICE:
(402)426-4080
FAX:
(402)426-9340
1, have audited the accompanying financial statements of the governmental activities, the
business -type activities, and each major fund, as of and for the yearended September 30,
2006, 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. 1 believe that my audit provides a reasonable basis for my
opinions.
In my opinion, the financial statements referred to above presentfairly, 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, 2006, 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
principies generally accepted in the United States of America. -
In accordance with Government Auditing Standards, I have also issued my report dated
December 18, 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 aud;t.
e 14
Mayor and Members of
the City Council
December 18, 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.
G�
Edward W. Schroeder
Certified Public Accountant
15
ASSETS
Cash and Equivalents
Accounts receivable
Due from County Treasurer
Accrued interest receivable
Prepaid expense
Special Assessments receivable
Contract receivable
Capital Assets:
Land
Street infrastructure
Buildings
Equipment
Accumulated depreciation
Restricted cash
Total Assets
LIABILITIES
Current Portion of long-term debt
Accounts payable
Accrued expenses
Accrued interest
Deposits
Registered warrants
Bonds payable - more than one year
Total liabilities
NET ASSETS
Investment in capital assets net of
related debt
Restricted for donated projects
Restricted for grant projects
Restricted for debt service
Restricted for community betterment
Unrestricted
Total Net Assets
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
SEPTEMBER 30, 2006
Business -
Governmental
Type
1,622,545
Activities
Activities
Total
$ 1,954,507
$ 1,211,796
$ 3,166,303
281,744
789,108
1,070,852
68,299
0
68,299
140,013
13,282
153,295
0
7,043
7,043
2,018,084
0
2,018,084
2,666,759
0
2,666,759
190,641
215,082
405,723
4,996,193
0
4,996,193
5,486,506
28,594,670
34,081,176
2,847,436
1,811,808
4,659,244
(3,943,915)
(10,722,422)
(14,666,337)
973,807
267,387
1,241,194
17,680,074
22,187,754
39,867,828
530,000
. 1,092,545
1,622,545
340,603
258,583
599,186
45,235
19,150
64,385
0
148,506
148,506
13,000
1,700
14,700
1,848,544
0
1,848,544
3,220,000
10,187,119
13,407,119
5,997,382
11,707,603
17,704,985
5,826,861
8,619,474
14,446,335
41,115
0
41,119
87,941
0
87,941
811,324
267,387
1,078,711
181,780
0
181,780
4,733,667
1,593,290
6,326,957
$ 11,682,692
$ 10,480,151
$ 22,162,843
See Notes to Financial Statements
16
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J
CITY OF BLAIR, NEBRASKA
BALANCE SHEET - GOVERNMENTAL FUNDS
SEPTEMBER 30, 2006
Debt
ASSETS
General
Service
Street
Keno
340,603
Accrued expenses
Fund
Fund
Fund
Fund
Total
Cash and Equivalents
$ 1,875,126
$ 0
$ 79,381
$ 0
$ 1,954,507
Receivables:
0
1,848,544
0
0
1,848,544
Special assessments
0
2,018,084
0
0
2,018,084
Accrued interest
140,013
0
0
0
140,013
Other
277,131
0
0
4,613
281,744
Due from County Treasurer
54,506
1,868
11,925
0
68,299
Reserved assets - cash
4,854,634
811,324
8,093
181,780
5,855,831
and investments - at cost
132,186
659,252
0
182,369
973,807
Contract receivable - OPPD
2,666,759
0
0
0
2,666,759
TOTAL ASSETS
5,145,721
2,679,204
91,306
186,982
8,103,213
LIABILITIES
Accounts payable
262,487
0
78,116
0
340,603
Accrued expenses
15,600
19,336
5,097
5,202
45,235
Deposits payable
13,000
0
0
0
13,000
Registered warrants
0
1,848,544
0
0
1,848,544
Unreserved undesignated:
TOTAL LIABILITIES
291,087
1,867,880
83,213
5,202
2,247,382
FUND BALANCES
Reserved for:
Donated funds
41,119
0
0
0
41,119
Grant funds
87,941
0
0
0
87,941
Debt Service
0
811,324
0
0
811,324
Community betterment
0
0
0
181,780
181,780
Unreserved undesignated:
General funds
4,725,574
0
0
0
4,725,574
Special revenue funds -
(deficit)
0
0
8,093
0
8,093
TOTAL FUND BALANCES
4,854,634
811,324
8,093
181,780
5,855,831
TOTAL LIABILITIES AND
FUND EQUITY
$ 5,145,721
$ 2,679,204
$ 91,306
$ 186,982
$ 8,103,213
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, 2006
Fund Balances of Governmental Funds $ 5,855,831
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. 9,576,861
Bonds payable are not a current financial resource. Therefore,
they are not included in the governmental funds. (3,750,000)
Net Assets of Governmental Activities $ 11,682,692
See Notes to Financial Statements
19
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Debt Total
General Service Street Keno Governmental
Fund Fund Fund Fund Funds
REVENUES:
Taxes
$ 3,111,780
$ 51,959
$ 822,876 $
0
$ 3,986,615
Street revenues
0
0
0
0
0
Keno proceeds
0
0
0
77,954
77,954
Charges for services
270,497
0
0
0
270,497
Special assessment
0
670,713
0
0
670,713
Special assessment interest
0
161,433
0
0
161,433
Interest income
316,294
13,476
808
0
330,578
Other revenues
609,164
242,310
162,087
0
1,013,561
Total revenues
4,307,735
1,139,891
985,771
77,954
6,511,351
EXPENDITURES:
Administration
692,418
990
0
0
693,408
Contingency allowance
0
0
0
0
0
Police Department
1,284,881
0
0
0
1,284,881
Fire Department
484,002
0
0
0
484,002
Parks Department
405,938
0
0
0
405,938
Library
228,936
0
0
0
228,936
Swimming pool
16,491
0
0
0
16,491
Zoning
88,197
0
0
0
88,197
Animal control
66,886
0
0
0
66,886
Donated funds
109,461
0
0
0
109,461
Keno expense
0
0
0
23,256
23,256
Community betterment
0
0
0
40,070
40,070
Street expense
0
0
3,331,421
0
3,331,421
Street capital outlay
0
0
0
0
0
Debt service:
Bonding costs 0 10,438 0 0
Redemption of bonds 0 1,220,000 0 0
Bond interest 0 197,510 0 0
Total expenditures 3,377,210 1,428,938 3,331,421 63,326
10,438
1,220,000
197,510
8,200,895
REVENUES OVER (UNDER)
EXPENDITURES $ 930,525 $ (289,047) $ (2,345,650) $ 14,628 $ (1,689,544)
-continued-
See Notes to Financial Statements
20
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCE
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
-continued-
REVENUES AND OTHER
FINANCING SOURCES
OVER (UNDER)
EXPENDITURES AND
OTHER USES (707,764) (1,251,447) 62,210
FUND BALANCE
September 30, 2005 5,562,398 2,062,771 (54,117)
181,780 (1,715,221)
0 7,571,052
FUND BALANCE
September 30, 2006 $ 4,854,634 $ 811,324 $ 8,093 $ 181,780 $ 5,855,831
See Notes to Financial Statements
21
Debt
Total
General
Service
Street
Keno
Governmental
Fund
Fund
Fund
Fund
Funds
REVENUES OVER (UNDER)
EXPENDITURES
$ 930,525
$ (289,047)
$ (2,345,650) $
14,628
$ (1,689,544)
OTHER FINANCING
SOURCES (USES):
Bond proceeds
0
680,000
0
0
680,000
Sale of assets
0
0
0
0
0
Operating transfers - in
0
0
2,407,860
167,152
2,575,012
Operating transfers - out
(1,638,289)
(1,642,400)
0
0
(3,280,689)
REVENUES AND OTHER
FINANCING SOURCES
OVER (UNDER)
EXPENDITURES AND
OTHER USES (707,764) (1,251,447) 62,210
FUND BALANCE
September 30, 2005 5,562,398 2,062,771 (54,117)
181,780 (1,715,221)
0 7,571,052
FUND BALANCE
September 30, 2006 $ 4,854,634 $ 811,324 $ 8,093 $ 181,780 $ 5,855,831
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 30,200
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
$ (1,879,530)
2,684,332
(341,822)
0
540,000
$ 1,002,980
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
GENERALFUND
FOR THE YEAR ENDED SEPTEMBER 30 2006
REVENUES:
Taxes
Charges for services
Interest income
Other revenues
Total revenues
EXPENDITURES:
Administration
Contingency allowance
Police Department
Fire Department
Parks Department
Library
Swimming pool
Zoning
Animal control
Donated funds
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, 2005
FUND BALANCE - September 30, 2006
Budget
$ 3,143,510
201,830
278,700
468,179
4,092,219
681,512
30,000
1,258,954
562,090
706,670
255,441.
18,600
80,950
82,760
135,074
3,812,051
Actual
$ 3,111, 780
270,497
316,294
609,164
4,307,735
692,418
0
1,284,881
484,002
405,938
228,936
16,491
88,197
66,886
109,461
3,377,210
$ 280,168 $ 930,525
0
0
(1,592,415)
(1,312,247)
5,562,398
$ 4,250,151
0
0
(1,638,289)
(707,764)
5,562,398
$ 4,854,634
See Notes to Financial Statements
23
Variance
Favorable
(Unfavorable)
$ (31,730)
68,667
37,594
140,985
215,516
(10,906)
30,000
(25,927)
78,088
300,732
26,505
2,109
(7,247)
15,874
25,613
434,841
$ 650,357
0
0
(45,874)
$ 604,483
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND REVENUES
BUDGET AND ACTUAL
FOR THE YEAR ENDED SEPTEMBER 30, 2006
r
See Notes to Financial Statements
24
Variance
Favorable
Budget
Actual
(Unfavorable)
REVENUES:
Taxes:
Property tax
$ 1,012,070
$ 976,877
$ (35,193)
Motor vehicle tax
155,000
168,560
13,560
Sales tax
1,612,080
1,580,572
(31,508)
Occupation tax
42,000
45,001
3,001
Other taxes
50,000
96,880
46,880
State aid
66,500
66,415
(85)
Franchise tax
205,860
177,475
(28,385)
Total
3,143,510
3,111,780
(31,730)
Charges for services:
Business licenses and permits
110,150
157,774
47,624
Library
12,000
14,433
2,433
Equipment rental
2,000
4,260
2,260
Cemetery lots
18,000
25,000
7,000
Grave openings
24,000
22,425
(1,575)
Towing
9,000
12,881
3,881
Other fees and charges
6,480
13,253
6,773
Sales of fireworks
15,000
15,000
0
RV park
5,200
5,471
271
Total
201,830
270,497
68,667
INTEREST INCOME
278,700
316,294
37,594
OTHER REVENUES:
State aid -library
4,400
1,395
(3,005)
State grants
229,000
10,954
(218,046)
Federal grants
2,400
296,484
294,084
Donations
108,659
113,634
4,975
Reimbursements
123,720
111,379
(12,341)
Sale of assets
0
0
0
Other miscellaneous revenue
0
75,318
75,318
Total
468,179
609,164
140,985
TOTAL REVENUES
$ 4,092,219
$ 4,307,735
$ 215,516
r
See Notes to Financial Statements
24
25
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL - ADMINISTRATION DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30,
2006
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 145,752 $
140,213
$ 5,539
Social Security
11,000
10,114
886
Employee's insurance
69,310
61,611
7,699
Retirement
5,360
4,300
1,060
OPERATING EXPENSES:
Bank fees
600
887
(287)
Legal
23,500
24,702
(1,202)
Auditing
2,500
2,028
472
Civil defense
800
750
50
Consulting
20,000
41,979
(21,979)
Custodial services
5,400
4,800
600
Postage
6,000
3,535
2,465
Printing and publications
7,000
4,704
2,296
Training
6,600
6,008
592
Dues
15,750
16,353
(603)
Election expenses
6,000
1,740
4,260
Programming
5,000
5,164
(164)
City utilities
6,200
7,325
(1,125)
Telephone
7,000
6,830
170
Travel expense
7,500
8,176
(676)
Insurance and bonds
9,400
6,497
2,903
California Bend
0
0
0
Maintenance
24,500
7,918
16,582
Tree removal
18,000
26,985
(8,985)
City cleanup
9,000
9,287
(287)
Economic Development
50,000
50,000
0
Car expense
6,120
5,821
299
Community betterment
21,000
8,340
12,660
County Treasurer's fees
10,020
10,662
(642)
Collection fees
73,400
46,313
27,087
Miscellaneous
400
2,941
(2,541)
SUPPLIES
15,900
11,215
4,685
RENTAL EXPENSES:
Office equipment
2,500
1,682
818
CAPITAL OUTLAY:
Real estate
0
20,531
(20,531)
Office equipment
90,000
133,007
(43,007)
TOTALS
$ 681,512 $
692,418
$ (10,906)
See Notes to Financial Statements
25
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
CONTINGENCY ALLOWANCE
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Variance
Favorable
Budget Actual (Unfavorable)
CONTINGENT RESERVE $ 30,000 $ 0 $ 30,000
TOTAL $ 30,000 $ 0 $ 30,000
See Notes to Financial Statements
26
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
POLICE DEPARTMENT
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 771,558 $
773,864
$ (2,306)
Social Security
51,210
57,735
(6,525)
Employee's insurance
202,046
214,221
(12,175)
Retirement
49,800
51,385
(1,585)
OPERATING EXPENSES:
Legal
4,200
4,010
190
Auditing
2,000
1,404
596
Postage
800
664
136
Printing and publications
1,800
1,083
717
Programming
2,500
1,867
633
Drug task force
8,800
7,629
1,171
Evidence procurement
500
742
(242)
Training
2,700
2,497
203
Telephone
6,800
6,529
271
Travel
2,000
5,534
(3,534)
Utilities
9,840
9,061
779
Custodial
3,800
3,150
650
Dues
700
470
230
Insurance
18,200
15,376
2,824
MAPA testing
1,500
1,109
391
Maintenance -
22,100
24,945
(2,845)
Medical exams
1,800
1,895
(95)
Car expense
1,000
39
961
Wellness/crime stoppers
3,200
2,791
409
Towing
8,000
6,362
1,638
Miscellaneous
600
2,894
(2,294)
SUPPLIES:
Dog support
2,000
1,203
797
Supplies
16,100
28,423
(12,323)
Gas and oil
20,500
19,928
572
Uniforms
14,000
8,722
5,278
Ammunition and range
2,000
1,812
188
Safety Equipment/Training
3,000
2,770
230
RENTAL EXPENSES
400
302
98
CAPITAL OUTLAY:
Office equipment
0
0
0
Motor vehicles
23,500
24,465
(965)
i
TOTALS
$ 1,258,954 $ 1,284,881
$ (25,927)
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, 2006
See Notes to Financial Statements
28
Variance
Favorable
Budget
Actual
(Unfavorable)
OPERATING EXPENSES
Workman's Compensation
$ 3,400
$ 2,423
$ 977
Legal
800
780
20
Auditing
400
312
88
Consulting
5,000
0
5,000
Telephone
3,300
3,487
(187)
Utilities
28,240
22,155
6,085
Insurance
21,600
18,459
3,141
Maintenance
16,800
25,090
(8,290)
Travel
300
534
(234)
Training
1,900
676
1,224
Miscellaneous
150
300
(150)
SUPPLIES
Operating supplies
1,850
797
1,053
Gas and oil
3,350
2,682
668
Safety equipment
75,000
45,169
29,831
Miscellaneous
0
0
0
CAPITAL OUTLAY
Equipment
400,000
361,138
38,862
TOTALS
$ 562,090
$ 484,002
$ 78,088
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 2006
H
Actual
144,104
10,327
42,797
6,631
2,049
468
200
249
464
165
60
13,346
2,841
6,000
7,100
36,376
66,218
808
15,000
5,446
5,355
5,520
5,585
15,575
0
$ 405,938
See Notes to Financial Statements
29
Variance
Favorable
(Unfavorable)
$ 2,746
173
(4,727)
(31)
(424)
132
200
251
486
235
65
894
159
0
2,200
(7,926)
(14,218)
(208)
1,500
1,094
(435)
(3,020)
415
2,425
310,000
8,746
$ 300,732
Budget
PERSONAL SERVICES:
Salaries
$ 146,850
Social Security
10,500
Employee's insurance
38,070
Retirement
6,600
OPERATING EXPENSES:
Legal
1,625
Auditing
600
Programming
400
Printing and publications
500
Training
950
Dues
400
Travel
125
Utilities
14,240
Telephone
3,000
Fireworks
6,000
Insurance
9,300
Maintenance
28,450
Contract mowing
52,000
Miscellaneous
600
Youth program
16,500
SUPPLIES
Operating supplies
6,540
Gas and oil
4,920
Small tools
2,500
Playground equipment
6,000
RENTAL EXPENSE
18,000
CAPITAL OUTLAY
Other improvements
310,000
Equipment
22,000
TOTALS
$ 706,670
H
Actual
144,104
10,327
42,797
6,631
2,049
468
200
249
464
165
60
13,346
2,841
6,000
7,100
36,376
66,218
808
15,000
5,446
5,355
5,520
5,585
15,575
0
$ 405,938
See Notes to Financial Statements
29
Variance
Favorable
(Unfavorable)
$ 2,746
173
(4,727)
(31)
(424)
132
200
251
486
235
65
894
159
0
2,200
(7,926)
(14,218)
(208)
1,500
1,094
(435)
(3,020)
415
2,425
310,000
8,746
$ 300,732
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
LIBRARY
FOR THE YEAR ENDED SEPTEMBER 30, 2006
See Notes to Financial Statements
30
Variance
Favorable
Budget
Actual
(Unfavorable)
PERSONAL SERVICES:
Salaries
$ 135,576
$ 126,546
$ 9,030
Social Security
9,200
9,545
(345)
Employee's insurance
18,365
15,103
3,262
Retirement
6,500
6,767
(267)
OPERATING EXPENSES:
Legal
800
780
20
Auditing
600
468
132
Consulting
1,000
1,000
0
Postage
900
953
(53)
Dues
300
310
(10)
Printing and publications
200
138
62
Utilities
11,700
11,783
(83)
Telephone
2,000
1,111
889
Travel
700
139
561
Training
800
582
218
Insurance
3,700
3,782
(82)
Maintenance
11,500
9,368
2,132
Custodial services
3,000
2,520
480
SUPPLIES
Supplies
7,000
4,197
2,803
Library materials
41,600
33,844
7,756
CAPITAL OUTLAY
Office equipment
0
0
0
TOTALS
$ 255,441
$ 228,936
$ 26,505
See Notes to Financial Statements
30
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
SWIMMING POOL
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Actual
312
3,522
2,068
6,954
64
3,543
28
0
Variance
Favorable
(Unfavorable)
$ 88
678
532
(2,954)
36
3,457
272
$ 16,491 $ 2,109
See Notes to Financial Statements
31
Budget
OPERATING EXPENSES:
Auditing
$ 400
Utilities
4,200
Insurance
2,600
Maintenance
4,000
Miscellaneous
100
SUPPLIES
Chemicals
7,000
Miscellaneous
300
CAPITAL OUTLAY
0
TOTALS
$ 18,600
Actual
312
3,522
2,068
6,954
64
3,543
28
0
Variance
Favorable
(Unfavorable)
$ 88
678
532
(2,954)
36
3,457
272
$ 16,491 $ 2,109
See Notes to Financial Statements
31
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
ZONING
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Actual
49,538
3,737
10,899
3,026
2,017
156
2,460
1,967
584
410
566
3,600
3,205
1,795
2,605
1,632
0
$ 88,197
See Notes to Financial Statements
32
Variance
Favorable
(Unfavorable)
$ 2,162
63
(1,969)
(26)
(817)
44
(460)
(1,167)
716
10
234
0
(3,205)
(1,795)
(905)
(132)
$ (7,247)
Budget
PERSONAL SERVICES:
Salaries
$ 51,700
Social Security
3,800
Employee's insurance
8,930
Retirement
3,000
OPERATING EXPENSES:
Legal
1,200
Auditing
200
Printing and publications
2,000
Travel
800
Training
1,300
Dues
420
Telephone
800
Car expense
3,600
Violations
0
Miscellaneous
0
SUPPLIES
Office supplies
1,700
Books and maps
1,500
CAPITAL OUTLAY
Equipment
0
TOTALS
$ 80,950
Actual
49,538
3,737
10,899
3,026
2,017
156
2,460
1,967
584
410
566
3,600
3,205
1,795
2,605
1,632
0
$ 88,197
See Notes to Financial Statements
32
Variance
Favorable
(Unfavorable)
$ 2,162
63
(1,969)
(26)
(817)
44
(460)
(1,167)
716
10
234
0
(3,205)
(1,795)
(905)
(132)
$ (7,247)
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, 2006
0
$ 82,760
I
$ 66,886
See Notes to Financial Statements
33
0
$ 15,874
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 43,650
$ 34,700
$ 8,950
3,400
2,515
885
14,185
12,903
1,282
2,140
2,181
(41)
900
780
120
200
156
44
125
8
117
150
150
0
800
1,040
(240)
300
95
205
300
0
300
400
85
315
5,920
5,467
453
1,300
1,210
90
790
1,546
(756)
2,000
248
1,752
300
110
190
1,800
1,630
170
3,200
1,374
1,826
900
688
212
0
0
0
0
$ 82,760
I
$ 66,886
See Notes to Financial Statements
33
0
$ 15,874
CITY OF BLAIR, NEBRASKA
STATEMENT OF GENERAL FUND EXPENDITURES
BUDGET AND ACTUAL
DONATED FUNDS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
See Notes to Financial Statements
34
Variance
Favorable
Budget
Actual
(Unfavorable)
Library
$ 20,910
$ 24,041
$ (3,131)
Disc golf project
0
1,170
(1,170)
Police
1,877
12,269
(10,392)
Employee appreciation
4,486
2,581
1,905
Animal control
6,571
0
6,571
Uniforms
0
369
(369)
Vets tribute plaza
100,730
63,000
37,730
Miscellaneous
0.
3,557
(3,557)
Vets field project
500
1,000
(500)
Skateboard park
0
1,474
(1,474)
TOTAL
$ 135,074
$ 109,461
$ 25,613
See Notes to Financial Statements
34
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, 2006
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, 2005
FUND BALANCE - September 30, 2006
See Notes to Financial Statements
35
Variance
Favorable
Budget
Actual
(Unfavorable)
$ 45,450
$ 47,415
$ 1,965
2,950
4,544
1,594
224,000
670,713
446,713
48,000
161,433
113,433
0
242,310
242,310
1,000
13,476
12,476
0
0
0
321,400
1,139,891
818,491
450
990
(540)
15,000
10,438
4,562
1,220,000
1,220,000
0
184,008
197,510
(13,502)
1,419,458
1,428,938
(9,480)
$ (1,098,058)
$ (289,047)
$ 809,011
655,000
680,000
25,000
0
0
0
(379,585)
(1,642,400)
(1,262,815)
(822,643)
(1,251,447)
$ (428,804)
2,062,771
2,062,771
$ 1,240,128
$ 811,324
See Notes to Financial Statements
35
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES
EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL - STREET FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2006
EXPENDITURES:
Salaries
280,385
273,459
Var, Favorable
FICA
Budget
Actual
(Unfavorable)
REVENUES:
17,800
16,957
843
Highway allocation
$ 530,000
$ 490,527
$ (39,473)
Property taxes
292,900
280,131
(12,769)
Other taxes
46,100
52,218
6,118
Incentive payment
3,000
6,000
3,000
State maintenance agreement
21,700
21,798
98
In -Lieu of tax
8,000
11,207
3,207
Homestead exemption
0
13,772
13,772
Federal grants
490,000
84,303
(405,697)
Other grants
305,000
15,857
(289,143)
Interest on investments
100
808
708
Other income
10,600
9,150
(1,450)
Total revenues
1,707,400
985,771
(721,629)
EXPENDITURES:
Salaries
280,385
273,459
6,926
FICA
20,500
18,929
1,571
Retirement
17,800
16,957
843
Employee insurance
91,580
89,644
1,936
Legal
3,500
2,652
848
Auditing
3,500
2,964
536
Engineering
75,000
283,277
(208,277)
Office expense
2,900
4,248
(1,348)
Utilities
7,220
6,752
468
Telephone
1,800
1,907
(107)
Travel
2,000
2,493
(493)
Training
1,200
782
418
Insurance
23,500
13,648
9,852
Maintenance
38,700
32,942
5,758
Street lighting
130,000
126,550
3,450
County fees
2,900
2,999
(99)
Car expense
2,000
1,374
626
Contract mowing
16,000
15,802
198
Gas, diesel, and oil
25,150
19,927
5,223
Materials and supplies
111,750
287,318
(175,568)
Rental
25,500
9,928
15,572
Capital outlay:
Equipment
150,000
12,640
137,360
Buildings
100,000
0
100,000
Street improvements
2,035,500
2,104,229
(68,729)
Total expenditures
3,168,385
3,331,421
(163,036)
REVENUES OVER (UNDER) EXPENDITURES
$ (1,460,985)
$ (2,345,650)
$ (884,665)
- 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. 2006
- continued -
See Notes to Financial Statements
37
Var. Favorable
(Unfavorable)
$ (884,665)
0
0
885,860
0
$ 1,195
Budget
Actual
REVENUES OVER (UNDER) EXPENDITURES
$ (1,460,985)
$ (2,345,650)
OTHER FINANCING SOURCES (USES):
Bond proceeds
0
0
Sale of assets
0
0
Operating transfers - in
1,522,000
2,407,860
Operating transfers - out
0
0
REVENUES OVER (UNDER) EXPENDITURES
61,015
62,210
FUND BALANCE - September'30, 2005
(54,117)
(54,117)
FUND BALANCE - September 30, 2006
$ 6,898
$ 8,093
See Notes to Financial Statements
37
Var. Favorable
(Unfavorable)
$ (884,665)
0
0
885,860
0
$ 1,195
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENDITURES
AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
KENO FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2006
Budget Actual
GROSS PROCEEDS $ 0 $ 769,461
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
0 584,718
0 (936)
0 583,782
0 185,679
0 (107,725)
$ 78,000 $ 77,954
$ 769,461
584,718
(936)
583,782
185,679
(107,725)
$ (46)
17,000
15,389
1,611
2,600
100
2,500
19,600
15,489
4,111
58,400
62,465
4,065
0
(7,767)
(7,767)
(25,000)
(25,000)
0
(191,465)
(15,070)
176,395
(158,065)
14,628
172,693
164,309
164,309
0
300
2,843
2,543
0
0
0
$ 6,544
$ 181,780
$ 175,236
PRIZE RESERVE FUND RECONCILIATION
FOR THE REPORTING PERIOD
Beginning Reserve Balance $ 37,243
Increase in reserve 7,767
Withdrawals from reserve 0
Ending Reserve Balance (deficit) $ 45,010
See Notes to Financial Statements
38
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2006
ASSETS
Water
CURRENT ASSETS:
Sewer Total
Cash
$ 1,164,811
$ 46,985
$ 1,211,796
Accounts receivable -
user fees
648,042
141,066
789,108
Accrued interest
receivable
10,076
3,206
13,282
Prepaid expenses
4,974
2,069
7,043
Total current assets
1,827,903
193,326
2;021,229
NON-CURRENT ASSETS:
Restricted Assets:
Bond and interest
sinking fund cash
and investments
177,387
90,000
267,387
PROPERTY:
Land
165,207
49,875
215,082
Plant/buildings
23,940,275
4,654,395
28,594,670
Equipment
890,355
921,453
1,811,808
Accumulated depreciation
(7,605,025)
(3,117,397)
(10,722,422)
Property - net
17,390,812
2,508,326
19,899,138
TOTAL ASSETS
$ 19,396,102
$ 2,791,652
$ 22,187,754
- continued -
See Notes to Financial Statements
39
- continued -
LIABILITIES AND NET ASSETS
CURRENT LIABILITIES:
Current portion of long-term debt
Accounts payable
Deposits payable
Accrued interest
Accrued expenses
Total current liabilities
NON-CURRENT LIABILITIES:
Revenue bonds payable
Total liabilities
NET ASSETS:
Investment in capital assets
net of related debt
Restricted for Debt Service
Unrestricted (deficit)
Net Assets
TOTAL LIABILITIES AND
NET ASSETS
CITY OF BLAIR, NEBRASKA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
SEPTEMBER 30, 2006
Water
$ 1,037,545
246,375
1,700
133,364
15,398
1,434,382
9,387,119
10,821,501
6,966,148
177,387
1,431,066
8,574,601
$ 19,396,102
Sewer
$ 55,000
12,208
0
15,142
3,752
86,102
800,000
886,102
1,653,326
90,000
162,224
1,905,550
$ 2,791,652
See Notes to Financial Statements
40
$ 1,092,545
258,583
1,700
148,506
19,150
1,520,484
10,187,119
11,707,603
8,619,474
267,387
1,593,290
10,480,151
$ 22,187,754
CITY OF BLAIR, NEBRASKA
COMBINED STATEMENT OF REVENUES, EXPENSES
AND CHANGES IN NET FUND ASSETS
PROPRIETARY FUND TYPES
FOR THE YEAR ENDED SEPTEMBER 30, 2006
OPERATING REVENUES:
User fees
Sale of merchandise
Forfeited discounts
Other
Total revenues
EXPENSES:
Personal services
Operating expenses
Materials and supplies
Rental expense
Depreciation
Total expenses
OPERATING INCOME (LOSS)
OTHER REVENUE (EXPENSE):
Federal grants
Interest income
Interest expense
Bonding costs
Operating transfers - in
Operating transfers - out
CHANGE IN NET ASSETS
NET ASSETS - Sept. 30, 2005
NET ASSETS - Sept. 30, 2006
Water
Sewer
Total
$ 3,765,752
$ 691,083
$ 4,456,835
26,571
0
26,571
16,889
0
16,889
43,080
0
43,080
3,852,292
691,083
4,543,375
737,272
266,178
1,003,450
934,423
185,423
1,119,846
550,414
54,599
605,013
1,682
236
1,918
594,932
79,864
674,796
2,818,723
586,300
3,405,023
1,033,569
104,783
1,138,352
0
0
0
50,902
4,567
55,469
(376,975)
(30,285)
(407,260)
0
0
0
579,296
318,533
897,829
0
0
0-
1,286,792
397,598
1,684,390
7,287,809
1,507,952
8,795,761
$ 8,574,601
$ 1,905,550
$ 10,480,151
See Notes to Financial Statements
41
See Notes to Financial Statements
continued - 42
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, 2006
Variance
Favorable
Budget
Actual
(Unfavorable)
OPERATING REVENUES:
User fees
$ 3,896,000
$ 3,765,752
$ (130,248)
Sale of merchandise
20,000
26,571
6,571
Forfeited discounts
13,000
16,889
3,889
Other
9,900
43,080
33,180
Total revenues
3,938,900
3,852,292
(86,608)
EXPENSES:
Personal services:
Salaries
509,165
533,458
(24,293)
FICA
34,500
38,532
(4,032)
Workman's compensation
11,300
10,915
385
HAL insurance
115,920
117,633
(1,713)
Retirement (city share)
29,800
29,469
331
Unemployment and disability
4,300
5,272
972
Pension administration
1,700
1,993
(293)
Total
706,685
737,272
(28,643)
Operating expenses:
Bank fees
1,050
1,744
(694)
Legal fees
10,500
9,360
1,140
Auditing
4,500
3,432
1,068
Consultants/engineering
38,000
89,787
(51,787)
Postage
8,200
8,724
(524)
Printing and publications
900
595
305
Computer programming
5,500
7,400
(1,900)
Schools, travel, and training
7,100
13,540
(6,440)
Dues
1,500
2,087
(587)
Utilities
350,000
348,173
1,827
Telephone
5,500
4,852
648
Vehicle insurance
5,000
5,617
(617)
Liability insurance
15,500
13,786
1,714
Buildings and contents insurance
2,000
29,410
(27,410)
Radio maintenance
800
0
800
Office equipment maintenance
1,000
394
606
Motorized equipment maintenance
8,000
11,927
(3,927)
Building maintenance
40,000
25,236
14,764
Major maintenance
172,500
337,180
(164,680)
Contingent reserve
5,000
0
5,000
Electronic maintenance
12,500
12,185
315
Car expense
1,200
839
361
Gateway development
20,000
0
20,000
Other operating expense
1,000
3,631
(2,631)
Contract mowing
5,000
4,524
476
Total
$ 722,250
$ 934,423
$ (212,173)
See Notes to Financial Statements
continued - 42
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 2006
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, 2005
NET ASSETS - Sept. 30, 2006
Budget
$ 5,200
400
2,000
390,000
10,000
11,375
3,000
3,000
1,000
34,300
460,275
2,000
1,891,210
2,047,690
2,047,690
0
30,500
(343,923)
0
225,000
1,959,267
7,287,809
$ 9,247,076
Actual
$ 5,720
257
3,718
496,526
13,220
13,689
3,318
3,491
1,955
8,520
550,414
1,682
2,223,791
1,628,501
(594,932)
1,033,569
0
50,902
(376,975)
0
579,296
0
1,286,792
7,287,809
$ 8,574,601
See Notes to Financial Statements
43
Variance
Favorable
(Unfavorable)
$ (520)
143
(1,718)
(106,526)
(3,220)
(2,314)
(318)
(491)
(955)
25,780
(90,139)
(417,245)
(594,932)
(1,014,121)
0
20,402
(33,052)
0
354,296
0
$ (672,475)
NET ASSETS - Sept. 30, 2005 1,507,952 1,507,952
NET ASSETS - Sept. 30, 2006 $ 1,899,441 $ 1,905,550
See Notes to Financial Statements
44
CITY OF BLAIR, NEBRASKA
STATEMENT OF REVENUES, EXPENSES AND CHANGES
IN NET ASSETS
BUDGET AND ACTUAL - SEWER FUND
FOR THE YEAR ENDED SEPTEMBER 30.
2006
Var. Favorable
Budget
Actual
(Unfavorable)
OPERATING REVENUES:
User fees
$ 670,000 $
691,083
$ 21,083
Other revenue
2,000
0
(2,000)
Total revenues
672,000
691,083
19,083
EXPENSES:
Personal services:
Salaries
195,485
193,608
1,877
FICA
14,800
14,052
748
Employee insurance
44,930
46,928
(1,998)
Retirement
11,400
11,590
(190)
Total
266,615
266,178
437
Operating expenses:
Bank fees
600
887
(287)
Legal
2,250
1,950
300
Auditing
4,600
3,900
700
Consultants/engineering
29,500
31,286
(1,786)
Postage
5,000
4,985
15
Printing and publication
300
218
82
Computer programming
2,800
2,414
386
School, travel, and training
3,600
3,128
472
Dues
200
110
90
Utilities
43,000
40,441
2,559
Telephone
1,800
1,951
(151)
Insurance
14,800
17,589
(2,789)
Maintenance
61,200
74,884
(13,684)
Carexpense
900
432
468
Contract mowing
6,000
1,248
4,752
Total
176,550
185,423
(8,873)
Materials and supplies
58,800
54,599
4,201
Rental expense
1,500
236
1,264
Total expenses
503,465
506,436
(2,971)
OPERATING INCOME (LOSS) BEFORE
DEPRECIATION
168,535
184,647
16,112
DEPRECIATION
0
79,864
79,864
OPERATING INCOME (LOSS)
168,535
104,783
(63,752)
NON-OPERATING REVENUE (EXPENSE):
Interest income
3,700
4,567
867
Interest expense
(30,746)
(30,285)
461
Bonding costs
0
0
0
Transfers - in
250,000
318,533
68,533
CHANGE IN NET ASSETS
391,489
397,598
$ 6,109
NET ASSETS - Sept. 30, 2005 1,507,952 1,507,952
NET ASSETS - Sept. 30, 2006 $ 1,899,441 $ 1,905,550
See Notes to Financial Statements
44
CITY OF BLAIR, NEBRASKA
STATEMENT OF CHANGES IN CASH FLOW
WATER FUND AND SEWER FUND
FOR THE YEAR ENDED SEPTEMBER 30, 2006
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from interest earnings
Water
Sewer
Total
CASH FLOWS FROM OPERATING ACTIVITIES:
0
0
0
Cash received from customers
$ 3,884,648
$ 675,008
$ 4,559,656
Cash payments to suppliers
(1,529,665)
(314,985)
(1,844,650)
Cash payments to employees
(533,458)
(193,608)
(727,066)
Net Cash Provided by Operating Activities
1,821,525
166,415
1,987,940
CASH FLOWS FROM NON -CAPITAL
Cash and Equivalents, October 1
Cash and Equivalents, September 30
734,852
1,164,811
36,873
46,985
FINANCIAL ACTIVITIES:
Reconciliation of operating income to net cash
Operating transfers in
579,296
318,533
897,829
Operating transfers out
0
0
0
Net Cash Used For Non -capital
$ 1,138,352
Adjustments to reconcile operating income
Financing Activities
579,296
318,533
897,829
Depreciation
594,932
CASH FLOWS FROM CAPITAL AND
674,796
(Increase) decrease in receivables
32,356
RELATED FINANCING:
16,281
(Increase) decrease in prepaid expenses
(2,306)
Acquisition of capital assets
(4,128,935)
(383,099)
(4,512,034)
Repayment of long-term debt
(545,000)
(45,000)
(590,000)
Interest payment long-term debt
(343,922)
(30,747)
(374,669)
Bonding costs
2,843,964
0
2,843,964
Net Cash Used For Capital And
Related Financing Activities
(2,173,893)
(458,846)
(2,632,739)
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from interest earnings
43,258
3,406
46,664
Proceeds from federal grants
0
0
0
Proceeds from restricted assets
159,773
(19,396)
140,377
Net Cash Provided by Investing Activities
203,031
(15,990)
187,041
Net Increase (Decrease) in Cash and Cash
Equivalents
429,959
10,112
440,071
Cash and Equivalents, October 1
Cash and Equivalents, September 30
734,852
1,164,811
36,873
46,985
771,725
1,211,796
Reconciliation of operating income to net cash
provided by (used for) operating activities:
Operating income
$ 1,033,569
$ 104,783
$ 1,138,352
Adjustments to reconcile operating income
to net cash provided by operating activities:
Depreciation
594,932
79,864
674,796
(Increase) decrease in receivables
32,356
(16,075)
16,281
(Increase) decrease in prepaid expenses
(2,306)
(152)
(2,458)
(Decrease) increase in accounts payable
162,974
(2,005)
160,969
Total Adjustments
787,956
61,632
849,588
Net Cash Provided by Operating Activities
$ 1,821,525
$ 166,415
$ 1,987,940
See Notes to Financial Statements
45
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
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
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. Fiduciary
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
recognized in the period in which the liability is incurred. The Statement of Activities demonstrates
the degree to which the direct expenses of a given function are offset by program revenues.
Direct expenses are those that are clearly identifiable with a specific function. The types of
transactions reported as program revenues for the City are reported in three categories: 1)
charges for services, 2) operating grants and contributions, and 3) capital grants and contributions.
Charges for services include revenues from customers or applicants who purchase, use, or
directly benefit from goods, services, or privileges provided by a given function. Grant and
contributions include revenues restricted to meeting the operational or capital requirements of a
particular function. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
46
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
- 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 non-operating 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 non-operating 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, 2006
The City reports the following major governmental funds:
The General Fund is the government's primary operating fund. It accounts for all financial
resources of the City, except those required to be accounted for in another fund.
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
government -wide 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, 2006.
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, 2006, were $4,407,497 and $4,440,545 respectively.
48
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
- 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.
Investments are shown at cost. There are no significant differences in cost and fair values at
September 30, 2006.
E. Capital Assets
Capital assets, which include land, machinery and equipment (furniture, vehicles, etc.) and
infrastructure assets (street systems, storm drains, etc.), are reported in Governmental Activities
column of the Government -Wide Financial Statements. Capital assets are defined by the City as
assets with an initial, individual cost of more than $5,000. Such assets are recorded at historical
cost or estimated historical cost if purchased or constructed. Donated or annexed capital assets
are recorded at estimated market value at the date of donation or annexation.
The costs of normal maintenance 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
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, 2006.
The City's December 31, 2005 valuation was $409,342,648. The levy for the City for
the year ending September 30, 2006 was .3564 per $100 of value. The total tax levy
was $1,368,200. 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, 2006
- 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, 2006.
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.
CITY OF BLAIR, NEBRASKA
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
NOTE #2 - CAPITAL ASSETS - GOVERNMENTAL FUNDS
Capital Assets Not Depreciated
Other Capital Assets:
Street infrastructure
Buildings
Equipment
Total Other Capital Assets
Less Accumulated depreciation:
Street Infrastructure
Buildings
Equipment
Total Accumulated depreciation
Other Capital Assets Net
Governmental Activities
Capital Assets, net
Depreciation expense was charged
to functions as follows:
Administration
Police
Fire
Parks
Library
Swimming pool
Zoning
Animal control
Streets
Total depreciation
Balance
Sept. 30, 2005 Additions
$ 170,111 $ 20,530
2,891,963
2,104,230
5,486,506
0
2,465,381
559,572
10,843,850
2,663,802
(53,954)
(76,623)
(1,570,137)
(137,163)
(2,155,519)
(128,036)
(3,779,610)
(341,822)
7,064,240 2,321,980
$ 7,234,351 $ 2,342,510
$ 36,376
48,447
75,439
32,819
4,629
20,806
0
9,116
114,190
$ 341,822
51
0 (130,577)
0 (1,707,300)
177,517 (2,106,038)
177,517 (3,943,915)
0 9,386,220
$ 0 $ 9,576,861
Balance
Deletions
Sept. 30, 2006
$ 0
$ 190,641
0
4,996,193
0
5,486,506
(177,517)
2,847,436
(177,517)
13,330,135
0 (130,577)
0 (1,707,300)
177,517 (2,106,038)
177,517 (3,943,915)
0 9,386,220
$ 0 $ 9,576,861
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
NOTE #3 — RISK MANAGEMENT
' The City of Blair is exposed to various risks of loss related to torts; theft, damage to and destruction of
i 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, 2006.
Governmental Funds Business -Type Activities
Reserved for:
Donated Funds $ 41,119 $ 0
Grant Funds 87,941 0
Debt Service 811,324 267,387
Community Betterment 181,780 0
52
r
4
b
F
i
NOTE #5 - LONG TERM DEBT
WATER DEBT:
Dated Description
08/09/00 DEQ Bonds
06/15/00 Refunding Bonds
e
06/01/06 NRD Bonds
TOTAL WATER
SEWER DEBT:
12/15/04 Revenue Bonds
TOTAL SEWER
Year Ending Septemb
continued
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
Balance
Interest Sept 30,
Rate 2005 Additions Deductions
Balance
Sept 30,
4.03% $ 6,590,700
$ 0
$ 75,000
$ 6,515,700
4.70-5.55% 1,535,000
0
470,000
1,065,000
4.15-4.75% 0
2,843,964
0
2,843,964
$ 8,125,700
$ 2,843,964
$ 545,000
$ 10,424,664
2.05-4.25% 900,000
0
45,000
855,000
$ 900,000 $
0 $
45,000 $
855,000
Annual Principal Requirements
For Water Bonds
er 30,
Principal
Interest
2007
$ 1,037,545
$ 434,854
2008
1,060,910
391,609
2009
1,084,835
347,288
2010
1,109,339
301,680
2011
1,134,438
254,741
2012
1,170,151
204,307
2013
1,196,495
154,508
2014
1,158,493
102,778
2015
1,081,161
53,015
2016
391,297
7,884
TOTAL
$ 10,424,664
$ 2,252,664
53
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
NOTE #5 - LONG TERM DEBT - continued
Annual Principal Requirements
For Sewer Bonds
Year Ending September 30,
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
TOTAL
Principal Interest
$ 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
$ 855,000 $ 227,814
Sinking fund requirements for Water and Sewer debt were a reserve of $267,387
at September 30, 2006. Net working capital of Water and Sewer funds is
$393,521 and $107,224, respectively. All liabilities on the balance sheet of
governmental funds are current.
continued
54
i
CITY OF BLAIR, NEBRASKA
NOTES TO FINANCIAL STATEMENTS
SCHEDULE OF CHANGES IN GOVERNMENTAL BONDED INDEBTEDNESS
FOR THE YEAR ENDED SEPTEMBER 30, 2006
NOTE #5 - LONG TERM DEBT - continued
Balance
Balance
Interest
Sept 30,
Sept 30,
Dated
Description
Rate
2005
Additions
Deductions
2006
01/15/96
Various purpose
5.90-4.80%
95,000
0
95,000
0
06/01/98
Various purpose
4.10-4.85%
130,000
0
40,000
90,000
04/15/99
Various purpose
3.50-4.40%
710,000
0
165,000
545,000
10/15/00
Various purpose
4.65-5.5%
740,000
0
740,000
0
06/01/02
Public safety
2.75-5.45%
695,000
0
30,000
665,000
12/15/02
Various purpose
1.60-4.25%
980,000
0
150,000
830,000
07/19/05
Various purpose
2.90-4.25%
940,000
0
0
940,000
06/15/06
Various purpose
3.70-4.35%
0
680,000
0
680,000
TOTAL
$ 4,290,000
$ 680,000
$ 1,220,000
$ 3,750,000
CITY OF BLAIR, NEBRASKA
NOTE TO FINANCIAL STATEMENTS
SCHEDULE OF GENERAL OBLIGATION BONDS
PRINCIPAL AND INTEREST REQUIREMENTS
BY YEAR OF MATURITY
SEPTEMBER 30, 2006,
NOTE #5 - LONG TERM DEBT - continued
Year Ending
September 30,
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
Principal
Requirements
$ 530,000
515,000
485,000
315,000
325,000
335,000
195,000
205,000
215,000
220,000
65,000
75,000
75,000
80,000
55,000
60,000
50,OOU-
Interest
Requirements
$ 151,711
132,797
111,939
92,744
80,661
67,907
54,212
46,360
37,760
28,642
20,594
17,341
13,578
9,797
6,268
3,270
$ 681,711
647,797
596,939
407,744
405,661
402,907
249,212
251,360
252,760
248,642
85,594
92,341
88,578
89,797
61,268
63,270
$4,625,5$-
CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
. SEPTEMBER 30, 2006
NOTE #6 - ALLOWANCE FOR DOUBTFUL ACCOUNTS
The City uses the direct write-off for uncollectable accounts. The doubtful accounts at
September 30, 2006 were not significant.
NOTE #7 - COMMITTMENTS
The City is obligated under no material operating leases as of September 30, 2006.
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, 2006, were $154,166.
Contributions are expected to remain relatively level from year to year. The 2006 covered
payroll and total payroll were $1,284,717 and $1,495,205 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
$92,974 for 2006, 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, 2006. 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 2006.
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CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
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, 2006, are
composed of the following:
2006
Special assessment principle $1,431,548
Special assessments available not levied KT
Total Special Assessments Receivable X2,018,084
The delinquent special assessments at September 30, 2006 are 20% 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 71 % of water sales for the year ended September
30, 2006.
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CITY OF BLAIR
NOTES TO FINANCIAL STATEMENTS
SEPTEMBER 30, 2006
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 — EXCESS EXPENDITURES OVER APPROPRIATIONS
The Debt Service, Street, Water and Sewer Funds had excess expenditures over
budgeted appropriations for the year ended September 30, 2006.
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EDWARD W SCHROEDER
CERTIFIED PUBLIC ACCOUNTANT
1904 SOUTH STREET OFFICE:
r BOX 486.. (402) 426:4080
BLAIR, NEBRASKA 68008 FAX
(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
December 18, 2006
City of Blair.
Blair, NE
I have audited the financial statements of the governmental activities, the business type activities,
each major fund, and the aggregate remaining fund information of the City of Blair, as of and for the
year ended September 30, 2006, which collectively comprise the City of Blairs basic financial
statements and have issued our report thereon dated December 18, 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. A reportable condition is described in the accompanying schedule of findings
and responses.
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.
i
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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 the
Nebraska Budget Act and Levy Limits, other 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, City Council, 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
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City of Blair
Schedule of Findings and Responses
Year ended September 30, 2006
SECTION I — SUMMARY OF AUDITOR'S RESULTS
FINANCIAL STATEMENTS:
Type of auditor's report issued — unqualified.
Internal control over financial reporting:
• Material weakness(es) identified?
• Reportable condition(s) identified that are not
considered to be material weaknesses?
• Noncompliance material to financial
Statements noted?
SECTION II — FINANCIAL STATEMENT FINDINGS
ITEM 1
X yes no
yes none reported
yes X no
Criteria — One important aspect of internal control is the segregation of duties
among employees to prevent an individual employee from handling duties, which
are incompatible. (OMB Circular A-133, Subpart C, 300 (b))
Condition — The payroll, depositing and preparation of reports are done by the
same person.
Context — This condition was observed in the study of the internal control system.
Cause and Effect — The cause is due to the size of the entity and the effect is a
weakness in internal control.
Recommendation — We realize that with a limited number of office employees,
segregation of duties is difficult. However, the City should review its control
procedures to obtain the maximum internal control possible under the
circumstances.
Officials Response — The City will segregate duties to the extent possible with
existing personnel and utilize the board to provide additional control through
review of financial transactions and reports.
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