HomeMy Public PortalAboutAnnual Report 2022 - final with exhibits
2022 ANNUAL REPORT
URBAN RENEWAL AGENCY OF THE CITY OF McCALL, ALSO KNOWN AS THE
McCALL REDEVELOPMENT AGENCY
Pursuant to Idaho Code § 50-2006(5)(c), an urban renewal agency is required to file with the
local governing body and the Idaho State Controller, on or before March 31 of each year, a
report of its activities for the preceding calendar year, which shall include certain financial
information, specifically the fiscal year 2021 audit and the fiscal year 2022 budget. An urban
renewal agency’s fiscal year commences October 1 and ends September 30.
Pursuant to Idaho Code § 67-450B, an urban renewal agency is required to prepare certain
audited financial statements as described in that section depending on the agency’s overall
expenditures. The Agency authorized an audit of its financial statements for fiscal year ending
September 30, 2021, which audit was completed and received by the Agency in 2022. A copy of
the Agency’s 2021 audited financial statements are attached hereto as Exhibit 1. The fiscal year
2021 audit was uploaded to the Local Government Registry administered by the Idaho State
Controller’s Office prior to December 1, 2022, as required by Idaho Code Section 67-1076. The
fiscal year 2022 audit is underway and is anticipated to be completed in or around March 2023.
The fiscal year budgetary process, which the Agency completed on August 17, 2021, resulted in
a termination budget approval for the original 1990 Railroad Avenue Project Area that depicts
actual and budgeted figures for Fiscal Years 2020, 2021 and 2022 identifying budgeted
obligations and costs related to completing the E. Lake Street Waterfront & Brown Park
Improvements Project and final year costs. Additionally, the Agency Board approved a budget
for the Downtown West Urban Renewal Project that depicts actual and budgeted figures for
Fiscal Years 2021 and 2022. A copy of the approved budgets are attached as Exhibit 2. The
fiscal year 2023 budget was adopted on August 16, 2022. The fiscal year 2022 budget was
uploaded to the Local Government Registry administered by the Idaho State Controller’s Office
prior to December 1, 2022, as required by Idaho Code Section 67-1076. The Agency was
determined by the Idaho State Controller’s Office to be in compliance with the Local
Government Registry reporting requirements for 2022. The Agency is also required to submit
certain information to the Idaho State Tax Commission for the urban renewal registry pursuant to
Idaho Code Section 50-2913. The Agency timely submitted the necessary information.
The McCall City Council formally approved the 1990 Urban Renewal Plan for the Railroad
Avenue Area on December 13, 1990, by Ordinance No. 578 (the “Lake Front Plan”) establishing
the revenue allocation project area (the “Lake Front Project Area”). The ordinance became
effective upon publication. Since that approval, the Agency worked on implementation of the
Lake Front Plan. In 2006, pursuant to Section 900 of the Lake Front Plan, the Agency prepared
the 2006 Updated Urban Renewal Plan (the “Amended Lake Front Plan”). The Lake Front
Project Area terminated on September 30, 2021, as formally acknowledged in City Council
Ordinance No. 1007, dated September 23, 2021.
The McCall City Council formally approved the Urban Renewal Plan for the Downtown West
Urban Renewal Project on October 24, 2019, by Ordinance No. 928 (the “Downtown West
Plan”) establishing the Downtown West Project Area. The ordinance became effective upon
publication. The Agency is working on implementation of the Downtown West Project Area.
AGENCY BOARD MEMBERS, OFFICERS, CONSULTANTS AND SUPPORT STAFF
Board members for calendar year 2022 included Monty Moore, Colby Nielsen, Mike Maciaszek,
Tabitha Martineau, Lew Ross, Clair Bowman and Michelle Rentzsch.. Officers for the year were
Mike Maciaszek, Chairman, and Tabitha Martineau, Vice-Chairman. Elam & Burke, P.A. served
as legal counsel on certain matters as requested by the Agency Board and/or Agency Staff.
Michelle Groenevelt, the Community and Economic Development Director for the City of
McCall serves as the Agency’s Administrator. Additional administrative support for the Agency
is provided by Rachel Santiago-Govier who acts as the Secretary. Linda Stokes, the City
Treasurer, performs treasurer duties for the Agency.
AGENCY ACTIVITIES
Lake Front Project Area
During 2022, the Agency completed the final projects related to the Lake Street – Waterfront
Improvement Project and the Brown Park Stabilization and Park Reconstruction Project. Project
completion had been delayed due to weather, supply chain and labor shortage issues.
Termination of the Lake Front Project Area
The MRA Board worked with Staff and the MRA Attorney to complete all the steps to terminate
and close out the 1990 Railroad Avenue Project Area. Due to construction delays primarily due
to COVID-19 resulting in supply chain issues and labor shortages, the East Lake Street and
Brown Park Improvement Project was not completed and carried over to FY2022. The Project
was completed with existing revenue allocation proceeds by Summer 2022. There were no
remaining surplus funds to be returned to the County for distribution to the affected taxing
districts. The Agency completed its scope of work and did not receiving additional revenue
allocation area proceeds as the increment value became available for the overlapping taxing
districts to use is setting their respective FY2022 budgets.
Downtown West Project Area
No projects were planned for the new district to allow time to acquire funding for future projects.
REVENUES
Tax Increment Revenue
The only source of Agency income in FY2022 is revenue allocation proceeds, also referred to as
tax increment revenue, generated within the Downtown West Project Area. Because of the
provisions of the Local Economic Development Act, Title 50, Chapter 29, Idaho Code, and the
ad valorem tax system, for the Downtown West Project Area, the Agency received $164,423.73,
tax increment revenue and $1,129.04 interest earnings totaling $165,552.77.
EXPENDITURES
Leverage of Agency Dollars
An integral component of the Agency’s program is to develop outside funding sources to
leverage Agency dollars for improvements within the revenue allocation area. The Agency
continues to coordinate with property owners and public entities in an effort to determine
redevelopment opportunities.
The Agency intends to seek, review and approve funding, where appropriate, for other projects
that positively impact each revenue allocation area and its residents.
OPERATING EXPENSES
The Agency’s operating expenses are minimal. Those expenses are shown on Exhibit 2 to this
report.
ASSETS
The Agency’s Assets are comprised of cash accounts and property taxes receivableThe major
portions of property taxes are received twice per year (end of January and end of July) with
smaller amounts of delinquent taxes received during the course of the year.
LIABILITIES AND DEBT
As of the fiscal year end, the Agency’s liabilities consist only of current accounts payable and
deferred revenue.
SIGNIFICANT CHANGES IN AGENCY’S FINANCIAL POSITION
The Agency currently operates in a “pay-as-you-go” environment, committing only those funds
to projects that can be funded out of current funds or projected tax increment revenues in a given
fiscal year, though the Agency continues to consider how to better leverage Agency funds.
Mike Maciaszek, Chairman
Exhibit 1
FY2021 Audit
HARRIS
Financial
Statements
City of McCall, Idaho
Includes Supplementary Information
Year Ended September 30, 2021
Helping you succeed, financially and beyond.
Table of Contents
Independent Auditors' Report
Management's Discussion and Analysis
Financial Statements
6
Government Wide Financial Statements
Statement of Net Position 16
Statement of Activities 18
FLLnd Financial Statements
Balance Sheet Governmental Funds 20
Reconciliation of the Government Funds Balance Sheet
to the Statement of Net Position 21
Statement of Revenues, Expenditures and Changes in
Fund Balances Governmental Funds 22
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures and Changes in Fund Balance to the Statement of Activities 24
Statement of Net Position • Proprietary Funds 25
Statement of Revenues, Expenses and Changes in Fund
Net Position - Proprietary Funds 27
Statement of Cash Flows - Propnetary Funds 28
Notes to the Financial Statements 30
Required Supplementary Information
Statements of Revenues, Expenditures and Changes in
Fund Balances - Budget to Actual:
General Fund 52
Street / Public Works Fund 53
Library Fund 54
Recreation Fund 55
Airport Fund 56
Local Option Tax Fund 57
Debt Service Fund 58
Schedule of Employers' Proportionate Share of Net Pension Liability 59
Federal Reports
Independent Auditors' Report on Internal Control over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards 62
Independent Auditors' Report on Compliance for Each Major Program and on
Internal Control over Compliance Required by the Uniform Guidance 64
Schedule of Expenditures of Federal Awards 66
Notes to Schedule of Expenditures of Federal Awards 67
Schedule of Findings and Questioned Costs 68
Schedule of Prior Audit Findings 70
HARRIS
CPO.,
INDEPENDENT AUDITORS' REPORT
To the City Council
City of McCall
McCall, Idaho
Report on the Financial Statements
We have audited the accompanying statements of the governmental activities, the business -type activities, the aggregate
and discretely presented component unit, each major fund, and the aggregate remaining fund information of the City of
McCall as of and for the year ended September 30, 2021, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in accordance with
accounting principles generally accepted in the United States of America; this includes the design, implementation, and
maintenance of internal control relevant to the preparation and fair presentation of financial statements that are free
from material misstatement, whether due to fraud or error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Stanrinrdj, issued by the Comptroller General of the United States. Those
standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial
statements are free form material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor's pudgment, including the assessment of the risks of material
misstatements of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity's preparation and fair presentation of the financial statements in order to
design audit procedures that are appropriate in the circumstances, but mit for the purpose of expressing an opinion on
the effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also includes
evaluating the appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit
opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all matenal respects, the financial position of
the governmental activities, the business type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of McCall as of September 30, 2021 and the respective
changes in financial position, and, where applicable, cash flows thereof for the year then ended in conformity with
accounting principles generally accepted in the United States of America.
mERIONIN EOM NAM FALLS COEUR D'ALENE HARRISCPAS.tOM
4
ID
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's discussion and
analysis, budgetary comparison information and the schedule of employers' proportionate share of net pension liability
as listed in the table of contents, be presented to supplement the basic financial statements. Such information, although
not a party of the basic financial statements, is required by the Government Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational,
economic, or historical context. We have applied certain limited procedures to the required supplementary information
in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of
management about the methods of preparing the information and comparing the information for consistency with
management's responses to our inquiries, the basic financial statements, and other knowledge we obtained during our
audit of the basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or provide any
assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise the
City of McCall's basic financial statements. The accompanying schedule of expenditures of federal awards, as required by
Tile 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cart Principles, and Audit
Requirements for Federal Awards, is presented for purposes of additional analysis and is not a required part of the basic
financial statements.
The schedule of expenditures of federal awards are the responsibility of management and were derived from and relate
directly to the underlying accounting and other records used to prepare the financial statements. Such information has
been subjected to the auditing procedures applied in the audit of the financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting and other
records used to prepare the financial statements or to the financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In our opinion, the
information is fairly stated in all material respects in relation to the financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated , on our consideration of the City
of McCall's internal control over financial reporting and on our tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements and other matters. The purpose of that report is to describe the scope of
our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide
an opinion on the internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Gon'ennment Auditing Standards in considering City of McCall's internal control over financial
reporting and compliance.
Meridian, Idaho
June 30, 2022
MANAGEMENT'S DISCUSSION AND ANALYSIS
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
As management of the City of McCall, Idaho (City) we offer readers of the City's financial statements this narrative overview
and analysis of the financial activities of the City of McCall for the fiscal year ended September 30, 2021. Please use this
information in conjunction with the information furnished in the City's financial statements.
FINANCIAL HIGHLIGHTS
• The assets and deferred outflows of resources of the City of McCall exceeded its liabilities and deferred inflows of
resources as of September 30, 2021 by $93,549,682 (net position) in comparison to $83,168,125 (net position) as of
September 30, 2020. Of this amount $20,437,450 is unrestricted and may be used to meet the City's ongoing
obligations to its citizens and creditors.
• During fiscal year 2021 the City's total Net Position increased $10,381,557. Net Position of the governmental activities
increased $8,000,754 and Net Position of business type activities increased $2,380,803.
• Total expenses during the year were $13,321,463 compared to total revenues of $22,547,283
• Fund balance of governmental funds on September 30, 2021 totaled 518,085,413. Of this amount, $279,256 is non -
spendable, $2,637,485 is restricted, $9,783,994 is assigned which represents the remaining fund balance of the special
revenue funds: 1) $1,420,333 Streets ;` Public Works, 2'; $1,013,224 Airport, 3) 533,842 Library, 4) $484,119
Recreation, 5) $76,860 Capital Projects, 6) S1,856,831 Streets Local Option Taxes, and 7) $4,209,962 Debt Service.
The Unassigned portion of fund balance i5 $1,384,6-'8 which represents the remaining fund balance of the General
Fund.
• The City has $5211,937 in long-term debt, compensated absences and the library bond in governmental activities. In
business -type activities compensated absences, a drinking water note payable to the Idaho Department of
Environmental Quality, and capital leases for golf carts.
OVERVIEW OF THE FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the City of McCall's basic financial statements, which
are comprised of three components: 1) government -wide financial statements, 2) fund financial statements, and 3) notes to
the financial statements. This report also contains other supplementary information in addition to the basic financial
statements themselves.
Government -Wide Financial Statements
These statements are designed to provide readers with a broad overview of the City of McCall's finances, in a manner similar
to a private -sector business. These statements are prepared using the accrual basis of accounting. The current year's revenues
and expenses arc recorded as transactions occur rather than when cash is received or paid.
6
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
There are two government -wide statements:
Statement of Net Position
Reports all the City's assets and liabilities with the difference between the two reported as Net Position. Over time,
increases or decreases in Net Position may serve as a useful indicator of whether the financial position of the City is
improving or deteriorating.
Statement of Activities
Reports how the City's Net Position changed during the most recent fiscal year. All changes in Net Position arc
reported as soon as the underlying event giving rise to the change occurs, regardless of the timing of related cash
flows. Thus, revenues and expenses are reported in this statement for some items that will only result in cash flows
in future fiscal periods.
Both government -wide financial statements distinguish functions of the City that arc principally supported by taxes and
intergovernmental revenues (governmental activities) from other functions that arc intended to recover all or a significant
portion of their costs through user fees and charges (business -type activities). The governmental activities of the City of
McCall include City administration, community planning and development, public safety, parks and recreation, library,
airport, public works and streets, and local option tax. The business -type activities of the City include the golf course and
water system.
The government -wide financial statements include not only the City of McCall itself (known as the primary government), but
also the McCall Redevelopment Agency, a legally separate entity, and a component unit of the City. Financial information for
the component unit is reported separately from the financial information presented for the primary government itself.
Fund Financial Statements
The Fund financial statements provide information about the City's major funds, not the City as a whole, A fund is a
grouping of related accounts that is used to maintain control over resources that have been segregated for specific activities
or objectives. The City, like other state and local governments, uses fund accounting to ensure and demonstrate compliance
with finance -related legal requirements. Funds may be required by law or may be established by the City Council. All the
funds of the City of McCall can be divided into two categories: governmental funds and proprietary funds.
Governmental bouts
Governmental funds are used to account for essentially the same functions reported as governmental activities in the
government -wide financial statements. However, unlike the government wide financial statements, governmental fund
financial statements focus on near term inflows and outflows of spendable resources, as well as on balances of spendable
resources available at the end of the fiscal year. Such information may be useful in evaluating a government's near -term
financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial statements, it is useful to
compare the information presented for governmental funds with similar information presented for governmental activities in
the government -wide financial statements. By doing so, readers may better understand the long-term impact of the
government's near -term financial decisions. Both the governmental fund balance sheet and the governmental fund statement
of revenues, expenditures, and changes in fund balances provide a reconciliation to facilitate this comparison between the
two.
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
The City maintains seven 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, airport, street / public works, recreation, library, and local option tax fund. These arc considered major funds. Data
from the other non -major fund (capital projects) is also included.
Proprietary Funds
The City of McCall only has one type of propriety fund, the enterprise fund, which is used to report the same functions
presented as business -type activities in the government -wide financial statements. Information is presented separately in the
Proprietary Funds Statement of Net Position and the Proprietary Funds Statement of Revenues, Expenses and Changes in
Fund Net Position for the golf and water funds, which arc considered major funds.
Notes to the Financial Statements
The notes provide additional information that is necessary to fully understand the data presented in the government -wide and
fund financial statements.
Required Supplementary Information
In addition to the basic financial statements and accompanying notes, this report also presents certain other required and
non required supplementary information. Budget to actual comparisons are presented as required supplementary information
for the General Fund, the Street / Public Works Fund, the Airport Fund, the Recreation Fund, the Library Fund, and the
Local Option Tax Fund.
Two additional schedules are included as required supplementary information. The Schedule of Employer's Share of Net
Pension Liability — PERSI and the Schedule of Employer Contributions are included as required by Governmental
Accounting Standards Board (GASB) No. 68.
6
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net Position
Net Position measures the difference between assets and deferred outflows of resources (what the City owns) and liabilities
and deferred inflows of resources (what the City owes). The City's combined assets and deferred outflows of resources
exceed liabilities and deferred inflows of resources by $93,549,682 in 2021. The largest portion of the City's Net Position,
75%, is invested in capital assets, net of related debt. Capital assets include land, buildings, equipment, machinery, and
infrastructure. Unrestricted Net Position equals 22"'o of total Net Position.
The condensed Statements of Net Position for the years ended September 30, 2021 and 2020 are presented in the table
below.
Primary Government
Current and Other Assets
Capital Assets
Total Assets
Deferred Outflows of Resources
Total Assets and Deferred
Outflows of Resources
Current Liabilities
Long-term Liabilities
Total Liabilities
Deferred Inflows of Resources
Total Liabilities and Deferred
Inflows of Resources
Net Position
Net investment in Capital Assets
Restricted
Unrestricted
Total Net Position
Governmental
Activities
FY2021 FY2020
Business -type
Activities
FY2021 FY2020
$28,736,615 $20,919,766 $ ',505,434 $ 5,867,287
54,194,303 48,739,708 21,733,2'8 20,842,700
82,930,918 69,659,474 29,238,'12 26,709,987
1,269,970 529,967 183,085 129,517
Total Primary
Government
FY2021 FY2020
$ 36,242,049 $ 26,787,053
75,927,581 69,5 82,408
112,169,630 96,369,461
1,453,055 659,484
84,200,888 70,189,441 29,421,797 26,839,504 113,622,685 97,028,945
2,841,964 2,251,104 1,236,875 685,556 4,078,839 2,936,660
4,290 763 2,319,332 921,174 1,541,019 5,211,937 3,860,351
7,132,727 4,570,436 2,158,049 2,226,575 9,290,776 6,797,011
10,410,472 6,962,070 371,755 101,739 10,782,227 7,063,809
17,543,199 11,532,506 2,529,804 2,328,314 20,073,003 13,860,820
$49,914,868 $48,739,708 $20,559,879 $19,790,801 $ 70,474,747 $ 68,530,509
2,63',485 1,865,329 2,637,485 1,865,329
14,105,336 8,051,898 6,332,114 4,720,389 20,437,450 12,772,287
66,657,689 58,656,935 26,891,993 24,511,190 93,549,682 83,168,125
$84,200,888 $70,189,441 5529,421,797 $26,839,504 $113,622,685 $ 97,028,945
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
Cbanges in Net Position
The following condensed financial information as presented in the table below was derived from the government -wide
Statements of Activities for years ended September 30, 2021 and 2020. During the year the City's financial position increased
by $10,381,557.
Charges for services $ 1,616,498 $ 1,444,903 $ 5,276,814 $ 4,420,471 $ 6,893,312 $ 5,865,374
Operating grants and contributions 1,060,325 1,438,118 1,060,325 1,438,118
Capital grants and contributions 2,549,848 5,337,932 10,000 2,549,848 5,347,932
General revenue:
Property taxes 6,283,399 6,382,139 6,283,399 6,382,139
Franchise fees 331,681 307,724 331,681 307,724
Sales tax and other governmental 4,869,815 3,842,104 4,869,815 3,842,104
Pension revenue 415,807 415,807
Unrestricted investment earnings 24,656 158,295 11,490 45,983 36,146 204,278
Other revenue 104,518 146,898 2,432 35,475 106,950 182,373
Total Revenues 17,256,547 19,058,113 5,290,736 4,511,929 22,547,283 23,570,042
Expenses
General Government
Government Administration 2,329,305 1,474,721 2,329,305 1,474,721
Public Safety 1,890,562 1,529,262 1,890,562 1,529,262
Parks and Recreation 1,291,760 2,307,539 1,291,760 2,307,539
Community Services 1,331,443 883,720 1,331,443 883,720
Library 360,547 466,299 360,547 466,299
Airport 611,313 673,325 611,313 673,325
Local Option Tax 182,334 353,510 182,334 353,510
Streets/Public Works 2,491,116 2,936,386 2,491,116 2,936,386
Enterprise - Golf and Water 2,833,083 3,175,325 2,833,083 3,175,325
Total Expenses 10,488,380 10,624,762 2,833,083 3,175,325 13,321,463 13,800,087
Excess (deficiency) of revenues
over expenditures before transfers 6,768,167 8,433,351 2,457,653 1,336,604 9,225,820 9,769,955
Transfers internal activities 1,232,587 (302,777) (76,850) 190,688 1,155,737 (112,089)
Change in Net Position 8,000,754 8,130,574 2,380,803 1,527,292 10,381,557 9,657,866
Net Position, Beginning of Year 58,656,935 46,261,636 24,511,190 22,007,777 83,168,125 68,269,413
Net Position, End of Year $66,657,689 $54,392,210 $26,891,993 $23,535,069 $ 93,549,682 $ 77,927,279
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
Governmental Activities
The City of McCall saw a 18.67% increase in building permit and planning fee revenues, as compared to 2020, an indication that
development activity continues to grow within the city and surrounding area. Governmental activities increased the City's Net
Position by $8,000,754. The streets local option tax generated $3,870,806, a 35.33% increase in local sales tax revenue in 2021
as compared to $2,860,240 in 2020.
The City of McCall experienced the onset of the COVID 19 pandemic in March 2020. The City enacted a mask mandate in June
of 2020 and lifted it in May 2021. The City received the first tranche of federal State Local Financial Relief funds from the State of
Idaho in 2021 in the amount of $386,850 and expects to receive the second tranche in the same amount in summer 2022. The
City claimed the funds under the "revenue replacement " category allowed by US Treasury rules. The City Council will appropriate
the funds to qualifying uses in future budget years.
Since McCall is a tourist destination with sales and lodging taxes generated by visitors, the City took a conservative financial
approach for revenue forecasts for FY21 due to the pandemic. Actual collections came in higher than predicted and the City was
able to fund all tourism -related grants requested by the community. The City's major capital projects in FY21 focused on water
system upgrades which were funded by water user rates using a pay-as-you-go methodology. The Downtown Core reconstruction
project which began in Summer of 2018 is on track to be completed in 2023 and is primarily funded with the streets local option
tax revenue.
The City Council worked with the McCall Redevelopment Agency to close out the Lakefront Urban Renewal Plan by the Plan's
sunset date of September 30, 2021, The final construction project funded was the Brown Park reconstruction/Lakeshore
stabilization project. After the sunset date, the remaining Plan assets were transferred to the City and the tax increment value of
the area was returned to all the impacted taxing districts. The City Council and the Agency created a new Plan Area and Project
Plan called the Downtown \Vest Revenue Allocation Area.
The Library Board of Trustees continued a capital fund raising campaign to expand the existing library. In 2018 the McCall Public
Library Foundation was created to assist in their fund-raising efforts. The City Council placed a $6.5 million General Obligation
Bond on the May 2020 election ballot which was narrowly defeated by the voters. The City and the Library Board re evaluated the
project and presented a reduced General Obligation Bond request of $4.2 million to voters at the I1fay 2021 election. Voters
approved the Bond with a 77.95°o yes vote.
The Bond request was reduced by removing the construction of a new Parks Maintenance Facility from the Bond project list. The
City Council instead financed the relocation of the Parks department and construction of a new facility by granting an inter- fund
loan from the General Fund reserves in the amount of $1 million to be repaid over 5 years from Local Option tax revenues. The
first repayment will occur in FY22.
The City retained Zion's National Bank as financial advisors for sale of the Bonds. Piper Sandler was retained as the Underwriter
for the sale. The Bonds were sold on September 8, 2021 by negotiated sale with a final interest rate of 1.77% and funds were
received by the City on September 21, 2021. The City received its first credit rating from Moody's Investor Services prior to the
Bond sale. In Moody's credit opinion issued August 11, 2021 they cited the City's conservative budget practices, financial policies,
and stability of our tax base in assigning a rating of Aa2.
The McCall area saw strong property value growth in 2021 due to high demand for second homes and vacation rental investment
property by out of the area purchasers. However, the 2022 economic environment of inflation, construction supply chain
disruptions, and rising interest rates may cause the real estate market to flatten and slow over the next year.
I1
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
Business -Type Activities
The business -type activities of the City include Golf and Water. The City of McCall issued 97 equivalent domestic use permits in
the water system in 2021 as compared to 113 in 2020. The number of new water connections were down 14.16%.
The Water Utility continues to see an increase in the number of new connections for service and increased overall demand for
water. In summer 2021 the treatment plant reached peak capacity due to large irrigation demand in early morning hours for
pmate landscaping across the service area. The City launched an immediate outreach campaign to the largest water users and
private landscape companies to use alternate watering days and times to smooth out demand for water and reduce the peak loads.
We quickly gained compliance and stabilized the demand thanks to good working relationships with our water users. In summer
2022 the City Council will receive an updated engineenng study of the water plan along with an updated rate study to ensure
appropriate treatment capacity is maintained and funded.
The Golf Course continues to receive a subsidy from the general fund to help cover personnel costs, assist with capital
improvements, and to plow cart paths in the winter to provide the general public a free recreational resource. The contract
for Golf Pro services to run the Pro Shop and tournaments ends in October 2022. The City is planning to bring those
services in-house in order to more efficiently run the course and to generate revenues for investment not the capital projects
identified in the 2020 Golf Course Asset Management Plan. The Plan identifies priorities for upgrades of the infrastructure,
such as irrigation systems, along with course improvements to keep the public course playable and accessible for all types.
FINANCIAL ANALYSIS OF THE CITY'S FUNDS
Governmental Funds
General Fund
The general fund is the principal fund used for the City's major operations. The fund balance as of September 30, 2021 was
$7,778,836, an increase of 10.18% over the fund balance at the end of the prior fiscal year. The City's conservative spending
continues to keep expenditures at or below budget. Fund balance is primarily used to fund one-time expenditures and to
fund the City's five (5) year Capital Improvement Plan.
General Fund Budgetary Highlights
General Fund
As part of the budget, Council adopts both contingent revenue and expense amounts to allow for the receipt and expenditure
of small amounts of unexpected revenues without a formal budget amendment. Throughout the year, several unexpected
grants, donations, and other miscellaneous revenues were received. City Council approved budget line item transfers from
contingency line items to the appropriate revenue and expense accounts. These transfers did not change the original adopted
budget for the fund. Contingency line items are not included in the original budget amounts on the Schedule of Revenues,
Expenditures, and Change in Fund Balances Budget and Actual — General Fund, Street ;' Public Works Fund, Airport
Fund, Recreation Fund, Library Fund and Streets Local Option Tax Fund.
12
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
The City of McCall funds a large portion of its Five -Year Capital Improvement Plan.:CIP) for the governmental funds
through the General Fund. Tax dollars reserved for capital expenditures in the General Fund are internally transferred to the
Street / Public Works Fund, Airport Fund, Recreation Fund, Library Fund, and Golf Fund as needed per the CIP and
project completion. Funds arc retained within the General Fund until expenditures are incurred, and / or the project is
completed. The City is constantly looking for ways to leverage limited city funding by actively seeking out grant and potential
cost -sharing opportunities.
The Tourism Local Option Tax (LOT) generated $1,018,512, a 47.36% increase in revenue in as compared to $691,188 in
2020. During 2021 $557,930 and $460,582 externally for programs and non profit groups. The programs and non-profit
groups recommended for funding by the LOT Commission and approved by Council in 2021 include the following; 1)
McCall Area Chamber of Commerce, 2) Valley County Recreation, 3) Payette Lakes Ski Club, 4) Valley County Pathways, 5)
Treasure Valley Transit, 6) Payette Lakes Community Association, 7) Manchester Ice and Event Center, 8) McCall Winter
Sports Club, 9) McCall Hockey/Ice Skating Association, 10) Roots Forest School, Inc., 11) McCall Arts and Humanities
Council, 13) Valley County Search and Rescue, 14) McCall Folklore Society, 15', Friends of Payette Avalanche Center, 16)
Little League West Central Idaho, 17) McCall Fire Protection District, 18) McCall Nordic & Biathlon Club, 19) McCall Ultra
Sed Dog Challenge, 20) Central Idaho Mountain Bike Association, and 21) Payette Land Trust. The LOT Commission also
recommended funding the following City programs and projects: 1) Administrative Costs, 2) Winter Sideway Snow Removal,
3) Local Housing Initiatives, 4) Noxious Weed Program, and 5; McCall Public Library Building Expansion project.
Capital Assets
At the end of 2021 the City had $75,927,581 invested in capital assets (net of accumulated depreciation;, compared to $69,582,408
at the end of 2020. Additional information can be found in Note C of the financial statements.
Capital Assets as of September 30, 2021
(net of depreciation)
Pnmaty Government
Land
Buildings and Improvements
Infrastructure
Improvements Other
Than Buildings
Equipment
Construction in Progress
Total
GUI emmental Business -type
Activities Activities
Total
S 9,568,894 S 1,142,320 S 10,711,214
1,533,623 5,723,282 7,256,905
10,978,956 10,978,956
11,039,618
1,277,7.0
19,795,442
11,724,019
617,888
2,525,769
22,763,637
1,895,658
22,321,211
$ 54,194,303 S 21,733,278 S 75,927,581
The City recorded current year depreciation of $1,680,831 in governmental activities and $979,386 in business -type activities.
13
CITY OF MCCALL
MANAGEMENT'S DISCUSSION AND ANALYSIS
SEPTEMBER 30, 2021
Lang -Terns Debt
Business -type activity outstanding debt includes $1,371,295 in a note payable to the Idaho Department of Environmental
Quality. The City is allowed a general obligation debt limit of 2'/c of market valuation of real and personal property in its
taxing area. As of September 30, 2021, based on valuations from Valley County, the limit would be $32.3M. The City issued
new debt in 2021 of $3,715,000. Detailed information on the City's long-term debt can be found in Note H of the financial
statements.
FY22 Budgetary Considerations
The 2022 budget includes several smaller capital projects such as implementation of the City's campus site improvements
including rehabilitation of the Senior Center using a CDBG grant, pathway improvements, Brown Park improvements, and
continued emphasis on pavement rehabilitation in the Governmental Funds. In the Enterprise funds the 2022 budget
includes continued water line replacement, implementation of the water master plan and the fourth annual water utility rate
increase. In the Airport Fund the City is moving forward with rehabilitating runways and the remaining apron pavement
using FAA grant funds. The City is finalizing design and construction estimates for the Library Expansion project and
anticipates higher than expected construction pricing due to current construction economy, inflation, and supply chain
disruptions. Therefore, the City has taken a conservative approach for use of discretionary General Fund dollars in order to
save funds to cover the projected cost increases. Award of the construction contract is anticipated in May 2022. Construction
is expected to commence in July 2022 with completion in summer 2024. Due to McCall's high altitude winter weather
climate, the construction season is fairly short and requires two seasons to complete the Library Expansion project.
Requests for Information
This report is designed to provide a general overview of the City of McCall's finances for our citizens and customers. If you
have questions about this report or need additional financial information, contact the Finance Office: 216 East Park Street,
McCall, Idaho 83638, (208) 634-2103.
14
BASIC FINANCIAL STATEMENTS
CITY OF MCCALL, IDAHO
STATEMENT OF NET POSITION
September 30, 2021
Prima Government
Component
Units
Governmental Business -Type
Activities Activities Total Total
ASSETS
Current Assets
Cash and Investments $ 1.',077,358 $ 6,849,686 $ 23,927,044 $ 956,969
Receivables
Accounts 537,629 537,629
Property tax ',295,855 7,295,855 161,717
Due from other governments 345,965 12,500 358,465
Grants 164,010 164,010
Other 567,722 14,217 581,939 105
Due from other funds 845,146 845,146 53,498
Prepaid expenses 194,256 91,402 285,658
Total Current Assets 26,490,312 7,505,434 33,995,746 1,172,289
Noncurrent Assets
Restricted cash 2,246,303 2,246,303
Capital assets, net of accumulated
depreciation 54,194,303 21.733278 75.927.581 760.545
Total Noncurrent Assets 56.440.606 21.733.278 78.173.884 760.545
Total Assets 82,930,918 29,238,712 112,169,630 1,932,834
Deferred Outflows
Pension obligations 1,269,970 183,085 1,453,055
Total Assets and Deferred Outflows S 84,200,888 S 29,421,797 S 113,622,685 $ 1,932,834
See accompanying notes to basic financial statements.
16
CITY OF MCCALL, IDAHO
STATEMENT OF NET POSITION (Continued)
September 30, 2021
Primary Government
Component
Units
Governmental Business -Type
Activities. Activities Total Total
LIABILITIES AND DEFERRED INFLOWS
Current Liabilities
Accounts payable S 1,124,952 $ 843,540 5 1,968,492 $ 2,260
Accrued expenses 357,581 30,538 388,119
Due to other funds 502,379 502,379 323,765
Advanced revenue 737,052 737,052
Due Within One Year
Capital lease payable 21,827 21,827
Bonds payable 120,000 120,000
Notes payable 340.970 340.970
Total Current Liabilities 2,841,964 1,236,875 4,078,839 326,025
Noncurrent Liabilities
Due in More Than One Year
Accrued compensated absences 210,886 122,041 332,927
Capital lease payable 23,374 23,374
Deferred bond premium amortization 564,435 564,435
Bonds payable 3,595,000 3,595,000
Notes payable 787,228 787,228
Net pension liability (79.558) (11 4691 (91.0271
Total Noncurrent Liabilities 4.290.763 921174 5.211.937
Total Liabilities
7,132,727 2,158,049 9,290,776
Deferred Inflows
Deferred tax revenue 7,172,448 7,172,448
Split interest 658,345 658,345
Pensions 2.579.6715 371.755 2.951.434
Total Deferred Inflows
NET POSITION
10,410,472 371,755 10,782,227
326,025
143,542
143,542
Net investment in capital assets 49,914,868 20,559,879 70,474,747 760,545
Unrestricted 14,105,336 6,332,114 20,437,450
Restricted 2.637.485 2.637.485 702,722
Total Net Position 66.657.689 26.891.993 93.549.682 1.463.267
Total rS 84.200.88ki S 29.421.797 S 113.622.685 1.932.834
See accompanying notes to basic financial statements.
17
CITY OF MCCAL L, IDAH O
STATEMENT OF ACTIVITIES
For the Year Ended Sept ember 30, 2021
Func tions/ Progra ms
Governmental Activities
Genera l go vemmeni
Pu blic safte',
Parks and rec reation
Co mmunity Services
Library
Airport
Local o ption tax
Street/pu blic works
Total Gov ern mental Activ ities
Bu siness -T ype Activ ities
Water
G olf course
To tal Bu siness -Type Activities
Tota l Prima ry Gov ernment
Component Units
Urban Ren ewal Agency
Exp ens es
P RO GRAM REVENUES
NET (EXPENSE) REVEN UE AND
CHANGES IN NET P OSITION
Fe es, Fines & Operating Capital
Primary Go vernment
Comp onent
Units
Charges for Grants & Grants & Governmental B usi ness -Type
Ser vi ces Contributions Contributions Acti viti es Activiti es
S 2,329,305 $
1,890,562
1,291,760
1,331,443
360,547
611,313
182,334
2,491,116
60,180 $ $
33,89' 7,493
39,099 61,656
633,443 635,072
1:1,992 9,772
312,069
129,048 2,549,848
526,818 217,284
17,488,380 1,616,498 1,060,325 2,549,848
1,924,518 3,534,192
908,565 1,083,403
2,833,083 4,617,595
13,321,463 6,234,093 1,060,325 2,549,848
496,772
See accompan ying notes to basic fin ancial statements.
18
5 (2,269,125) $
(1,849,172)
(1,191,005)
(62,928)
(339,783)
(299,244)
2,496,562
(1,747,014)
(5,261,709)
T ot al
$ (2,269,125) $
(1,849,172)
(1,191,005)
(62,928)
(339,783)
(299,244)
2,496,562
(1,747,014)
(5,261,709)
1,609,674 1,609,674
174,838 174,838
1,784,512 1,784,512
(5,261,709) 1,784,512 (3,477,197)
Tot al
(496 ,772)
CITY OF MCCALL, IDAHO
STATEMENT OF ACTIVITIES (Contin ued)
Fo r the Y ear End ed September 30, 2021
NET (E XPENSE) RE VENUE AND
CHANGES IN NE T P OSI TION
Net (Expe nse) Re vneue and Changes in Net Position (Continued)
Primary Go vernment
C omp onent
Units
Gov ernmental Business -Type
Activities Activities Total Total
;5,261,709) 1,784,512 (3,477,197) (496,772)
G eneral Rev enues and Tran sfers
Property taxes 6,283,399 6,283,399 866,669
Sales tax es 3,870,806 3,8'0,806
Revenu e sharing 999,009 999,009
Pensio n plan revenu e 415,807 415,80'
Earn in gs on investments 24,656 11,490 36,146 2,962
Miscellan eou s 104,518 2,432 106,950
Water and fran chise fees 331,681 659,219 990,900
N et operatin g transfers 1,232,587 (76,850) 1,155,737 (1 ,155,737)
Total G en eral Revenues an d Tran sfers 13,262,463 596,291 13,858,754 (286,106)
Change in Net Position 8,000,754 2,380,803 10,381,557 (782,878)
Net Position
Beginn in g of Year 58,656,935 24,511,190 83,168,125 2,246,145
End of Year $ 66,657 ,689 $ 26 ,891,993 $ 93,549,682 $ 1,463 ,267
See accompan yin g notes to basic financial sta teme nts.
CITY OF MCCALL, IDAHO
B AL ANC E SHEET - GOV ERNM ENTAL FUN DS
Septemb er 30, 2021
MAJOR FUN DS
Str eet /Public Local Option Debt Capital
General orks LL br�ry R ecr eation Airport Talc S ervi ce Proj ect s
ASSETS
NON -MAJOR
FUNDS TOTAL
Cash and investments $ 6,920,888 $ 1,474,406 $ 1,144,977 $ 481,148 $ 996,426 5 1,779,269 $ 4,209,837 $ 70,407 $ 17,077,358
Re stricted cash a nd inv estments 1,587,463 658,840 2,246,303
Receiv ables
Property taxes 4,180,901 1,770,371 678,732 311,089 78,762 276,000 7,295,855
Intergovernmental 245,285 46,993 13,156 40,531 345,965
Gran ts 7,400 60,358 65,089 31,163 164,010
Du e from other fun ds 85,000 120,955 289,431 289,822 59,938 845,146
Othe r receiv ables 197,311 8,440 2,453 1,592 13,795 343,993 125 13 567,722
Prepaid expenses 32.872 137 ,384 24,000 194,256
Total Assets 5 13.257.120 5 3.558 ,549 5 2.774.433 S 1.168.009 5 1,167 ,228 5 2,194,956 5 4,485,962 5 130,358 3 28.736.615
LIA BILITIES, DEFERRED INFLO WS AND FU ND BALA NCES
Liabilities
Accoun ts payable $ 262,919 $ 129,549 $ 59,299 283,874 $ 56,652 332,659 $ $ $ 1,124,952
Accrued expense 215,676 60,159 18,981.1 46,453 10,847 5,466 357,581
Due to other funds 446,926 1,955 53,498 502,379
Advanced re venu e 386, 850 334.399 9 .790 6.013 737.052
To tal Liabilities 1,312,3"'1 189,708 412,678 340,117 75,467 338,125 0 53,498 2,721,964
De fe rre d Inflows
Un available rev enu e 4,165,913 1,764,131 676,329 309,983 78,537 276 ,000 7,270,893
Irrev ocable split -interest agreemen t 658,345 658,345
Fund Balances
Nonspendable 11.', 8.. '2 137,384 24,001) 279,256
Restricted 1,587,463 46,993 993,239 9,790 2,637,485
Assign ed 688,823 1,420,333 33,112 484,119 1,013,224 1,856,831 4,209,962 76,860 9,783,994
Un assigned 5,384,678 5 .384.678
T ota l Fu nd Balan ces 7.778.836 L604.710 1027 081 517.909 1 0 13.224 1.856.831 4.209.962 76.860 18.085.413
Total 5 13,257,120 5 3.558. 549 S 2,774,433 5 1, 168,009 5 1,167,228 5 2,194,956 S 4,485,962 5 130.358 S 28,736 ,615
See accompanying notes to basic finan cial statements.
20
CITY OF MCCALL, IDAHO
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
September 30, 2021
Total fund balance - total governmental funds 5 18,085,413
Amounts reported for governmental activities in the
Statement of Net Position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds. These
assets, net of accumulated depreciation, consist of:
Land $ 9,568,894
Buildings 3,776,867
Improvements other than buildings 40,219,776
Equipment 5,302,360
Construction in progress 19,795,442
Accumulated depreciation (24,469,036)
Total capital assets, net of accumulated depreciation
Some of the City's taxes will be collected after yearend, but are not
available soon enough to pay the current period's expenditures, and
therefore are reported as advanced revenue in the funds.
Long term liabilities, applicable to governmental activities
are not due and payable in the current period and therefore are
not reported as fund liabilities. These liabilities consist of:
Net pension liability $ 79,558
Pension related deferred inflows (2,579,679)
Pension related deferred outflows 1,269,970
54,194,303
98,445
Total long term liabilities (1,230,151)
Long-term liabilities, including bonds payable and accrued leave,
are not due and payable in the current period and therefore are
not reported as fund liabilities. These liabilities consist of:
Deferred bond premium amortization $ (564,435)
Bonds payable (3,715,000)
Compensated absences payable (210,886)
Total long term liabilities (4,490,321)
Total ort position of governmental activities S 66,657,689
See accompanying notes to basic financial statements.
21
CITY OF MCCALL, IDAHO
STATEMENT OF RE VENUES, E XPENDITU RES AN D CHANGES IN FUND BALANCES -
GOVERNMENT AL FUNDS
For the Year Ended Sept ember 30, 2021
MAJOR F UNDS
NON -M AJ OR
FUNDS TOT AL
General
Street /P ublic Local Opti on Debt Capital
Works Librar y Recreati on Airport Tax Service Projects
Revenues
Property taxes 5 3,731,659 S 1,712,839 5 506,055 S 287,820 $ 81,809 $ - $ $ $ 6,320,182
Local option taxes 845,425 165,447 2,859,934 3,870,806
Intergov ernmental 1,641,574 217,284 9,772 61,656 2,549,848 129,048 4,609,182
Licen ses, permits, and fees 689,582 312,069 1,001,651
Charges fo r services 827,263 35,277 10,992 39,099 912,631
Fines 33,897 33,897
Interest 16,336 2,674 466 1,608 3,091 125 356 24,656
Miscellaneo us 14.228 18.010 16.030 21.133 2.211 32.906 104.518
Total Revenue s
7,799,964 1,986,084 542,849 575,621 2,947,545 3,024,9-9 125 356 16,877,523
Expe ndiure s
Cu rrent
G eneral go vernment 1,882,755 $ 1,882,755
Pu blic protectio n 1,859,2":8 1,859,278
City clerk 271,64' 2?1,64?
Community Services 1,258,995 35' ,847 69,598 1,686 ,440
Streets 1,614,126 1,614,126
Airport 248,662 248,662
Recreation 1,057,570 1,057,570
Local o ption tax 182,334 182,334
Capital outlay 1.084.194 202.454 133.872 1.391.360 2.549.895 1."3,651 ',135 ,426
Total Expenditures 6,356.869 1,816, 580 491.719 2. 448930 2.798,557 1 .955,985 69,598 15,938,238
Excess (Deficiency) of Revenues
Ov er Ex pen ditures 1,443,095 169,504 51,130 (1,8'3,309 148,988 1,068,994 (69,473) 356 939,285
See accompanying notes to basic fin ancial statements.
22
CIT Y OF MCCALL, I DAHO
STATEMENT OF REVEN UES, EXPENDITURES AND CH ANG ES IN FUND BALANCES -
GOVERNMENTAL F UNDS (C ontinued)
Fo r the Year Ended September 30, 2021
MAJOR FUNDS
NON -MAJ OR
F UN DS T OTA L
G eneral
Stre et /Publi c Local Option Debt Capital
Works Library Re cr eation Airport Tax Service Projects
Other Financing Sources (Uses)
Transfers in (o ut) (650,846) 40,522 141,017 1,753,453 (64,555) 12,996 1,232,587
Debt proceeds 4 .279.435 4 .279A35
Net O ther Financing Sou rces (Uses) (650,846) 40,522 141,017 1,753,453 (64,555) 12,996 4,279,435 5,512,022
Net Change in Fund Balances 792,249 210,026 192,147 (119,856) 84,433 1,081,990 4,209,962 356 6,451,307
Fun d Balan ces, Beginning of Year 6, 986,587 1,394,684 834 ,934 637,765 928,791 774,841 76,504 11 .634 .106
Fu nd Balances, End of Year S 7,778,836 $ 1,604,710 $ 1,027,081 $ 517,909 $ 1,013,224 $ 1,856,831 $ 4,209,962 $ 76,860 $ 18,085,413
See acco mpan ying n otes to basic fin ancial statements.
7.3
CITY OF MCALL, IDAHO
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
For the Year Ended September 30, 2021
Net change in fund balances • total governmental funds $ 6,451,30'
Amounts reported for governmental activities in the statement of activities
are different because:
Revenues that will not be collected for several months after the City's fiscal
year end are not considered "available" revenues and are deferred in the
governmental funds. Advanced revenues increased by this amount this year.
Governmental funds report capital outlays as expenditures. However, in the
statement of activities, the cost of those assets are allocated over their
estimated useful lives as depreciation expense. In the current period,
these amounts are:
Capital outlay
Depreciation expense
Excess of capital outlay over depreciation expense
In governmental funds, bonds are considered a source of financing,
but in the statement of net assets, the lease obligation is reported as a
liability. Similarly, lease p:i ments are recorded as expenditures rather than
reductions of a liability
Bond proceeds
S ',135,426
(1,680,831)
['nder the modified accrual basis of accounting used in the governmental
funds, expenditures are not recognized for transactions that are not
normally paid with expendable financial resources. In the statement of
activities, which is presented on the accrual basis, expenses and liabilities
are reported regardless of financial resource availability.
Change in pension revenue S 415,807
Decrease in compensated absence payable (4,73?)
(36,783)
5,454,595
(4,2 9,435)
411,070
Change in Net Position of Governmental Activities 5 8.000.754
See accompanying notes to basic financial statements.
24
CITY OF MCCALL, IDAHO
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
September 30, 2021
Golf
Water Course
Fund rr
ASSETS
Total
Current Assets
Cash and cash equtcalents $ 5,669,993 $ 1,T'9,r93 $ 6,849,686
Receivables
Accounts 53",629 537,629
Other governments
Due From other funds 12,500 12,500
Other 14,217 14,217
Prepaid expenses 88.802 2.600 91.402
Total Current Asset; 6,296,424 1,209,010 7,505,434
Non -current Assets
Capital Assets
Construction in progress 2,493,61' 32,132 2,525,769
Land 562,326 579,994 1,142,320
Buildings 12,049,935 952,595 13,002,530
Equipment 86,168 488,637 1,355,805
improvements other than buildings 18,-64,511 3,928,503 22,693,014
Less accumulated depreciation (15,458,202) (3,527,958) (18,986,160)
Total capital assets, net of accumulated depreciation 19,279,375 2,453,903 21,733,278
Total Assets
25,575,799 3,662,913 29,238,712
Deferred outflows
Pension related items _ 116.244 66.841 183.085
Total Assets and Deferred Outflows
See accompanying notes to basic financial statements.
$ 25,692,043 $ 3,729,754 $ 29,421,797
25
CITY OF MCCALL, IDAHO
STATEMENT OF NET POSITION - PROPRIETARY FUNDS (Continued)
September 30, 2021
Golf
Water Course
Fund Fund
LIABILITIES
Current Liabiliies
Accounts payable $ 615,613 $ 227,927 $ 843,540
Accrued interest pay able 9,432 2,654 12,086
Accrued compensated balances 75,723 46,318 122,041
Other accrued expenses 13,452 5,000 18,452
Current portion of capital leases 0 21,827 21,827
Current portion of notes payable 340.970 340.970
Total Current Liabilities 1,055,190 303,726 1,358,916
Non -Current Liabilities
Long term poruon of capital leases 23,374 23,374
Long-term portion of notes payable '02,228 85,000 787,228
Net pension liability (7.282) (4.187) (11.469)
Total Noncurrent Liabilities 694,946 104,187 799,133
Total Liabilities 1,750,136 407,913 2,158,049
Deferred Inflows
Pension related items 236,035 135.720 371.755
NET POSITION
Invested in capital assets 18,236,177 2,323,702 20,559,879
Restricted
Unrestricted 5,469,695 862,419 6,332,114
Total Net Position 23.705.872 3.186.121 26.891.993
Total Liabilities, Deferred Inflows and Net Position S 25.692.043 $ 3.729.754 S 29.421.797
See accompanying notes to basic financial statements.
26
CITY OF MCCALL, IDAHO
STATEMENT OF REVENUES, EXPENSES AND CHANGES IN FUND NET POSITION -
PROPRIETARY FUNDS
For the Year Ended September 30, 2021
Water Golf Course
F to EWA TQ
Operating Revenues
Charges for services $ 3,534,192 $ 1,055,086 $ 4,589,278
Other income 28.317 28.317
Total Operating Revenues 3,534,192 1,083,403 4,617,595
Operating Expenses
Salaries 406,297 382,595 788,892
Fringe benefits 58,696 49,351 108,047
Professional fees 182,443 (42,870) 139,573
Utilities and telephone 57,172 57,172
Maintenance and operations 300,471 209,567 510,038
Supplies 146,808 76,923 223,731
Depreciation 807.010 172.376 979386
Total Operating Expenses 1.901.725 905,114 2.806.839
Operating Income (Loss) 1,632,467 178,289 1,810,756
Non -operating Revenues (Expenses)
Interest revenues 10,464 1,026 11,490
Private contributions 1,000 1,000
Interest expense (22,793! (3,451) (26,244)
Water hook on fees 659,219 659,219
Miscellaneous income ;expense) 1,432 1,432
Total Non operating Revenues (Expenses) 648,322 (1,425) 646,897
Income (Loss) Before Transfers 2,280,789 176,864 2,457,653
Operating Transfers In (Out)
Transfers in
Transfers out
Total Operating Transfers In (Out)
(379,355)
(379,355)
381,889 381,889
(79,384) (458,739)
302,505 (76,850)
Change in Net Position 1,901,434 479,369 2,380,803
Net Position, Beginning of Year 21,804,438 2.706.75Z _ 24,511,190
Net Position, l•:nd of Year S 23.705.872 S 3.186.121 S 26.891.993
See accompanying notes to basic financial statements.
27
CITY OF MCCALL, IDAHO
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
For the Year Ended September 30, 2021
Golf
Water Course
and and
Total
Cash Flow From Operating Activities
Cash received from customers $ 3,447,781 $ 1,083,999 $ 4,531,780
Cash pa) ments to suppliers for goods ?216,803) (93,472) (310,275)
Cash pa) ments to employees for services (615,250) (489,449) (1,104,699)
Net Cash Provided By (Used in)
Operating Activities 2,615,728 501,078 3,116,806
Cash Flows From Noncapital Financing Activities
Operating transfers ;364,070) 332,505 131,565)
Other non operating income (loss) 660,651 1,000 661,651
Net Cash Provided By
Noncapital Financing Activities 296,581 333,505 630,086
Cash Flow From Capital and Related
Financing Activities
Acquisition of capital assets 1.1,655,507) (214,457) :1,869,964)
New long-term borrowings
Principal payments on long-term debt (334,097) (20,832) (354,929)
Interest payments on long-term debt (22,793) (3,451) (26,244)
Net Cash Used in Capital and Related
Financing Activities (2,012,397) (238,'40) ;2,251,137)
Cash Flows From Investing Activities
Interest on investments 10.464 1.026 11.490
Net Increase (Decrease) in Cash and Cash Equivalents 910,376 596,869 1,51',245
Cash and Cash Equivalents, Beginning of Year 4,759,617 582,824 5,342,441
Cash and Cash Equivalents, End of Year S 5,69.993 S 1.179.693 S 6.849.686
See accompanying notes to basic financial statements.
2
CITY OF MCCALL, IDAHO
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (Continued)
For the Year Ended September 30, 2021
Golf
Water Course
Fund Fund
Total
Reconciliation of Operating Income (Loss) To
Net Cash Provided by (Used in) Operating Activities
Operating Income Loss) $ 1,632,467 $ 1. 8,289 $ 1,810,756
Adjustments to Reconcile Operating Income
(Loss] to Net Cash Provided by. (Used in)
Operating :Activities
Depreciation 8J7,010 172,376 979,386
Deferred Outflows (25,880) (27,688) (53,568)
Deferred Inflows 155,627 114,389 270,016
Change in Assets and Liabilities;
(Increase) decrease in accounts receivable (86,411) (86,411)
(Increase) decrease in prepaid expense (5,372) (2,004) (7,376)
(Increase) decrease in other receivables 2,600 2,600
Increase (decrease) in accounts payable 422,980 208,517 631,497
Increase (decrease) in net pension liability (281,437) (133,174) (414,611)
Increase (decrease) in accrued expenses (4,689) (1,197) (5,886)
absences payable 1,433 (11,030) (9,597)
Net Cash Provided By (Used in)
OperaungActivities $ 2,615,728 $ 501,078 5 3,116,806
See accompanying notes to basic financial statements.
29
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies
General Statement
City of McCall, Idaho (the City) was incorporated July 19, 1911. The City operates under a Council -Manager form of
government and provides the following services as authorized by its charter: pubhc safety (police), parks and recreations,
community services, streets and general administrative services.
Financial Reporting Entity
The accompanying financial statements present the activities of the City of McCall (the City) and its single component
unit, the Urban Renewal Agency (URA). In evaluating the City as a reporting entity, management has addressed all
potential component units (traditionally separate reporting entities) for which the City may be financially accountable
and, as such, should be included within the City's financial statements. The City (the primary government) is financially
accountable if it appoints a voting majority of the organization's governing board and (1) it is able to impose its will on
the organization or (2) there is a potential for the organization to provide specific financial benefits to or impose specific
financial burdens on the City. Organizations for which the City is not financially accountable are also included when
doing so is necessary in order to prevent the City's financial statements from being misleading.
The financial statements are formatted to allow the user to clearly distinguish between the primary government and its
component unit. The URA has been discretely presented.
Basis of Presentation
Govmmiorl-a4de financial statements: The government wide financial statements (i.e., the statement of net position and the
statement of activities) report information on all of the non -fiduciary activities of the governmental entity. For most part, the
effect of interfund activity has been removed from these statements. Gottrnmental activities (government funds) which normally
arc supported by taxes and intergovernmental revenues arc reported separately from business-tjpe activities (proprietary funds)
which rely to a significant extent on fees and charges for support.
The statement of activities demonstrates the degree to which the direct expenses of a given program arc offset by program
revenues. Direct expenses are those that are clearly identifiable with a specific program. Program revenues include (1) fees, fines,
and charges to customers or applicants who purchase, use, or directly benefit from goods, services, or privileges provided by
a given program and (2) grants and contributions that are restricted to meeting the operational or capital requirements of a
particular program. Taxes and other items not properly included among program revenues are reported instead as general
ravines.
As a general rule, the effect of interfund activity has been eliminated from the government -wide financial statements.
Exceptions to this general rule are payments -in -lieu of taxes and other charges between the government's water and sewer
function and various other functions of the government. Ehmination of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Fund Financial Statements: The City segregates transactions related to certain functions or activities in separate funds in order
to aid financial management and to demonstrate legal compliance. Separate statements are presented for governmental and
proprietary activities. These statements present each major fund as a separate column on the fund financial statements: all
non -major funds are aggregated and presented in a single column.
30
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies (Continued)
Governmental funds are those funds through which most governmental functions typically arc financed. The measurement
focus of governmental funds is on the sources, uses and balance of current financial resources. The City has presented the
following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of the City, except those
required to be accounted for in another fund.
Street/Public !Forks Fund is used to account for the operation of the street maintenance department. Financing is
provided by state gasoline and sales taxes as well as property taxes. State law and city ordinance require that these
revenues be used to maintain roads and streets.
Airport Fund is used to account For the operation of the City's local airport. Financing is provided through property
taxes, charges for services and state and federal grants.
Recreation Fund is used to account for operation of City recreation programs. Financing is provided by a specific
annual property tax levy to the extent miscellaneous revenues are not sufficient to provide such financing. City
ordinance restricts these property taxes to financing of recreation programs.
Library Fund is used to account for the operation of the public library. Financing is provided principally through
property taxes which are restricted for library operations by City ordinance.
Local Option Tax Fund is used to account for the operation of the City's Local Option Tax over tourism.
Debt Senice Fund is used to account for the bonds issued for the library during the fiscal year.
Capital Project Fund, a nonmajor fund, is used to account for certain capital projects of the City.
Proprietary Funds are accounted for using the economic resources measurement focus and the accrual basis of accounting.
The accounting objectives arc a determination of net income, financial position and cash flow. All assets and liabilities are
included on the Statement of Net Position. The City has presented the following major proprietary funds:
The Golf Course Fund is used to account for the revenues and costs necessary to operate the City's golf course.
The Water Fund is used to account for the revenues and costs necessary to operate the City's water system.
Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating revenues and expenses
generally result from providing services and producing and delivering goods in connection with a proprietary fund's principal
ongoing operations. Operating expenses for proprietary funds include the cost of personnel and contractual services,
supplies, and depreciation of capital assets. All revenues and expenses not meeting this definition are reported as non -
operating revenues and expenses.
Measurement Focus/ Basis of Accounting
Measurement focus refers to what is being measured; basis of accounting refers to when revenues and expenditures are
recognized in the accounts and reported in the financial statements. Basis of accounting relates to the timing of the
measurement made, regardless of the measurement focus applied.
3]
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies (Continued)
The government -wide financial statements are reported using the economic resoutres measurement focus and the accrual basis of
accounting, as are the proprietary fund and fiduciary fund financial statements. The economic resources measurement focus
means all assets and liabilities (whether current or non -current) are included on the statement of net position and the
operating statements present increases (revenues) and decreases (expenses) in net total assets. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when a liability is incurred, regardless of the
timing of related cash flows. Property taxes are recognized as revenues in the year for which they are levied. Grants and
similar items arc recognized as revenue as soon as all eligibility requirements imposed by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement focus and are accounted for
using the modlfred accrual basis of accounting. Under the modified accrual basis of accounting, revenues are recognized as soon
as they are both measurable and available. "Measurable" means the amount of the transaction can be determined and
"available" means collectible within the current period or soon enough thereafter to be used to pay liabilities of the current
penod. For this purpose, the City considers revenues to be available if they are collected within 60 days after year end.
Expenditures generally are recorded when the liability is incurred, as under accrual accounting. However, debt service
expenditures, as well as expenditures related to compensated absences, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, and interest associated with the current fiscal period are all considered to be
susceptible to accrual and so have been recognized as revenues of the current fiscal period. Only the portion of special
assessments receivable due within the current fiscal period is considered to be susceptible to accrual as revenue of the current
penod. Sales taxes collected and held by the state at year end on behalf of the government also arc recognized as revenue. All
other revenue items are considered to be measurable and available only when cash is received by the government.
Delinquent property taxes and property taxes for which there is an enforceable legal claim as of the end of the fiscal year,
have been recorded as deferred inflows. Receivables that will not be collected within the available period have also been
reported as deferred inflows on the government fund financial statements.
Budgetary Control
Annual budgets are adopted on a basis consistent with state code and generally accepted accounting principles for all
governmental funds. All annual appropriations lapse at fiscal yearend. Project -length financial plans are adopted for all
capital projects funds. Annual operating budgets are adopted for proprietary funds.
The City follows these procedures in establishing the budgetary data reflected in the financial statements:
1. Prior to September 1, the City Council and City Manager prepare a proposed operating budget for the fiscal
year commencing on October 1. The operating budget includes proposed expenditures and the means of
financing them.
2. Public hearings are conducted at City Hall to obtain taxpayer comments.
3. Prior to October 1, the budget is legally enacted through passage of an appropriation ordinance.
Budgets are adopted on a basis consistent with generally accepted accounting principles for the general, special revenue,
capital projects and debt service funds. All annual appropriations lapse at fiscal year-end. The City Manager is authorized
to transfer budget amounts within departments and between departments within any fund. Revisions that alter the total
expenditure appropriation of any fund must be approved by the City Council. State law does not allow fund
expenditures to exceed fund appropriations.
Formal budgetary integration is employed as a management control device during the year for all funds.
32
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies (Continued)
Cash and Instestnfents
The government'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.
State statute authorizes the government to invest in obligations of the U.S. Treasury, commercial paper, corporate bonds,
repurchase agreements, and the State Treasurer's Investment Pool. Investments for the government are reported at fair
value.
Prepaid Expenses
Prepaid balances are for payments made by the City in the current year to provide services occurring in the subsequent
year, and the reserve for prepaid expenses has been recorded to signify that a portion of fund balance is not available for
other subsequent expenditures.
Recen abler and Payables
Activities between funds that arc representative of lending/borrowing arrangements outstanding at the end of the fiscal year
arc referred to as "due to/from other funds". Any residual balances outstanding between the governmental activities and
business -type activities are reported in the government -wide financial statements.
Quasi -external transactions are accounted for as revenues, expenditures or expenses. Transactions that constitute
reimbursements to a fund for expenditures/expenses initially made from it that are properly applicable to another fund, are
recorded as expenditures/expenses in the reimbursing fund and as reductions of expenditures /expenses in the fund that is
reimbursed.
All other interfund transactions, except quasi -external transactions and reimbursements, are reported as transfers.
Nonrecurring or non -routine permanent transfers of resources are reported as fund balance transfers. All other interfund
transfers arc reported as operating transfers. These transfers offset each other and arc not a part of the governmcnt.wide
financial statements unless between business -type (enterprise) funds and governmental funds.
Non -tax receivables are recognized as revenues received from the State and Federal governments if designated for the
current fiscal period.
All trade and property tax receivables arc shown net of an allowance for uncollecuble amounts.
33
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies (Continued)
Capital Assets
Capital assets, which include property, plant, equipment and infrastructure assets (e.g., roads, bridges, sidewalks, and similar
items) are reported in the applicable governmental or business -type activities columns in the government -wide financial
statements and in the fund financial statements for proprietary funds. Capital assets are defined by the City as assets with
an initial, individual cost of more than $10,000 and an estimated useful life in excess of three years. Such assets are recorded
at historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded at estimated
fair market value at the date of donation. The cost of normal maintenance and repairs that do not add to the value of the
asset or matenally extend assets lives arc not capitalized.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest incurred during the
construction phase of capital assets of business type activities is included as part of the capitalized value of the assets
construction.
Property, plant and equipment of the City are depreciated using the straight-line method over the following estimated useful
'west
Assets Years
Buildings 12-40
Improvements other than buildings 10-50
Equipment and vehicles 5-10
In the fund financial statements, capital assets used in governmental fund operations are accounted for as capital outlay
expenditures of the governmental fund upon acquisition. Capital assets used in proprietary fund operations are
accounted for the same as in the government -wide statements.
Compensated Absences
Employees of the City are entitled to paid vacation, paid sick leave and personal days off (comp time), depending on job
classification, length of service and other factors. All vacation and personal days off are accrued when incurred in the
government -wide, proprietary, and fiduciary fund financial statements. Governmental funds do not report a liability for
these amounts unless payment will be made early in the following year.
Interfund Transactions
During the course of normal operations, the City has numerous transactions between funds, including expenditures and
transfers of resources to provide services, construct assets, and service debt. The accompanying financial statements
generally reflect such transactions as transfers. Operating subsidies are also recorded as transfers.
Im ntories
Inventories are stated at the lower of cost (first -in, first -out method) or market. The cost of inventory items arc
recognized as expenditures in governmental funds when purchased (purchase method) and as expenses in proprietary
funds when used (consumption method).
34
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies (Continued)
Long-term Obligations
The accounting treatment of long-term debt depends on whether the related assets arc used in governmental fund operations
or proprietary fund operations and whether they arc reported in the government wide or fund financial statements.
In the government -wide financial statements, and proprietary fund types in the fund financial statements, long- term debt and
other long-term obligations are reported as liabilities in the applicable governmental activities, business -type activities or
proprietary fund type statement of net position. Long-term debt consists of notes and bonds payable, capital leases, and
accrued compensated absences. Bond premiums and discounts, as well as issuance costs, are deferred and amortized over the
life of the bonds using the effective interest method. Bonds payable are reported net of the applicable bond premium or
discount. Bond issuance costs are reported as deferred charges and amortized over the term of the related debt.
In the fund financial statements, governmental fund types report debt proceeds as other financing sources and payment of
principal and interest are reported as expenditures. Premiums received on debt issuances are reported as other financing
sources while discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld from
the actual debt proceeds received, arc reported as debt service expenditures.
Net Position Classifications
Government -Fide Statements: Net position is displayed in three components as follows:
Invested in capital assets, net of related debt — Consist of capital assets including restncted capital assets, net of
accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes, or other borrowings
that arc attributable to the acquisition, construction, or improvement of those assets.
Restricted net position — Consist of net position with constraints placed on the use either by (1) external groups such
as creditors, grantors, contributors, or laws or regulations of other governments, or (2) law through constitutional
provisions or enabling legislation.
Unrestricted net position — All other net position that do not meet the definition of "invested in capital assets, net of
related debt" or "restricted"
Fund statements: Governmental fund equity is classified as fund balance. Fund balance is further classified as nonspendable,
restricted, committed, assigned or unassigned. Proprietary fund equity is classified the same as in the government wide
statements.
Use of Restricted.. Unrestricted Net Position
When an expense is incurred for purposes for which both restricted and unrestricted resources are available, it is the City's
policy is to apply restricted resources first and then unrestricted resources as they are needed.
Use of Estimates
The City uses estimates and assumptions in preparing financial statements. Those estimates and assumptions affect the
reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities, and the reported revenues and
expenses. Actual results could differ from those estimates.
:15
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note A — Summary of Significant Accounting Policies (Continued)
Property Tax Calendar
The City's property tax is levied each October on the value listed as of the prior January 1 for all real property located in the
City. The lien date is effective January 1 of the year the property tax is levied. A revaluation of all property is required to be
completed no less than every five years.
Under Idaho Code Section 50-235, the City cannot levy taxes over nine -tenths percent (.9°'0) of the total City adjusted market
value for real property located within the City. Taxes are due in two Installments on December 20 and June 20 following the
levy date. Property taxes levied for 2021 are recorded as receivables if uncollected and a deferred revenue amount is recorded,
in the fund financial statements, to the extent of taxes not estimated to be collected within 60 days of the end of the
accounting period.
Customer Services Receivable
Amounts owed to the City for customer services are due from area residents and businesses and relate to water services
provided by the City. The City analyzes past due accounts and current circumstances to evaluate collectability.
General Fund Accounts Receivable
Amounts owed to the City for customer services arc due from a variety of sources. The City analyzes past due accounts
and current circumstances to evaluate collectability.
Advanced Revenue
The City reports advanced revenues on its statement of net position and fund balance sheet. Advanced revenues arise
when resources are received by the City before it has a legal claim to them, as when grant monies are received prior to the
occurrence of qualifying expenditures. In subsequent periods, when the City has a legal claim to the resources, the liability
for advanced revenue is removed from the balance sheet and the revenue is recognized.
Deferred 01010»1 and Ly7on s of Resources
In addition to assets, the statement of financial position will sometimes report a separate section for deferred outflows and
inflows or resources. Deferred outflows of resources, represents a consumption of net position or fund balance that applies to
a future period and thus, will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred inflows
of resources, represents an acquisition of net position or fund balance that applies to a future period and so will not be
recognized as an inflow of resources (revenue) until that time. As of September 30, 2021, deferred inflows represented
property taxes receivable unavailable for current use.
Pensions
For purposes of measuring the net pension liability and pension expense, information about the fiduciary net position of the
Public Employee Retirement System of Idaho Base Plan (Base Plan) and additions to/deductions from Base Plan's fiduciary
net position have been determined on the same basis as they are reported by the Base Plan. For this purpose, benefit
payments ;including refunds of employee contributions) are recognized when due and payable in accordance with the benefit
terms. Investments are reported at fair value.
36
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note B — Cash and Investments
At September 30, 2021, the City's cash and investments consisted of the following.
Bank Balance Carrying Amount
Cash
Bank Deposits
Cash on Hand
Total Cash
Investments
Certificate of Deposit
State Treasurer's Local Government Pool
Equities and Securities
Total Investments
Rating
N/A
N/A
AAA
$ 1,465,783
S 1,482,408
3.266
S 1 465 783 S 1,485,674
Reconciliation of the City's deposit and investment balances as of September 30, 2021:
City's Deposits
and Investments
Component
Units
Fair Value
S 252,336
24,733,466
658,840
$ 25,644,642
Average
Total Maturities
Cash in bank Deposits S 1,407,733 $ 74,675 S 1,482,408 NA
Certificate of Deposit 252,336 252,336 NA
State Treasurer LGIP 23,851,172 882,294 24,733,466 <12 Mo
Equities and Securities 658,840 658,840 NA
Cash on Hand 3,266 3 266 NA
Total
Custodial Credit Risk — Deposits
$ 26 173 347 5 956369 S_ 27,130,316
For deposits and investments, custodial credit risk is the risk that, in the event of the failure of the counterparty, the Cit.'
will not be able to recover the value of its deposits, investments or collateral securities that arc in the possession of an
outside party. The City's policy requires all investments should be held in the City's name, in the bank's Trust Department,
or alternately in the Federal Reserve Bank.
3�
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note B — Cash and Investments (Continued)
Credit Risk
Credit risk is the risk that the counterpart) to an investment will not fulfill its obligation. It is commonly expressed in terms
of the credit quality rating issued by a nationally recognized statistical rating organization such as Moody's, Standard &
Poor's and Fitch's. The rating of the Local Government Investment Pool (LGIP) as of September 30, 2009 was AAA. The
LGIP terminated Its rating service in December 2009 as the cost of the rating outweighed the benefit to the pool as a
whole. The funds objectives and overall strategy and structure have not changed.
Total Level 1 Level 2 Level 3
Certificates of deposit 5 252,336 $ 252,336 $ $
Equities 422,102 422,102
Fixed income
Municipal Securities 236.738 236,738
Total investments S 911,176 S 674,438 $ 236,738 $_ 0
Intense' Rak Risk
Investments that arc fixed for longer periods are likely to experience greater variability in their fair values due to future
changes in interest rates. The City's policy to mitigate interest rate risk is to structure the City's portfolio so that securities
mature to meet the City's cash demands and ongoing operations, thereby precluding the need to sell securities to the open
market prior to their maturity and primarily invest in shorter -term securities.
Concentration of Credit Risk
When investments are concentrated in one issuer, this concentration represents heightened risk of potential loss. No
specific percentage identifies when concentration risk is present. The Governmental Accounting Standards Board has
adopted a principal that governments should provide note disclosure when five percent of the total entities investments are
concentrated in any one issuer. Investments in obligations specifically guaranteed by the U.S. government, mutual funds,
and other pooled investments are exempt from disclosure. The City's policy is to invest no more than 50% of their total
investments in a single security type or with a single financial institution, with the exception of the U.S. Treasury Securities,
and authorized pools.
3M
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note C — Capital Assets
Capital asset activity for the year ended September 30, 2021 is as follows:
Governmental Activities
9/30/20 Increases Decreases 9/30/21
Capital assets, not being depreciated:
Land $ 9,568,894 $ $ $ 9,568,894
Construction in Progress 14.564.270 5.652.214 (421.042) 19.795,442
Total 24,133,164 5,652,214 (421,042) 29,364,336
Capital assets, being depreciated:
Buildings 3,755,681 21,186 3,776,867
Infrastructure 18,525,424 18,525,424
Improvements 19,935,751 1,337,559 421,042 21,694,352
Equipment 5,177.893 124.46" 5.302.360
Total
71,527,913 7,135,426 78,663,339
Less accumulated depreciation for:
Buildings 2,164,256 78,988 2,243,244
Infrastructure 6,962,728 583,740 7,546,468
Improvements 9,896,863 757,871 10,654,734
Equipment 3.764.358 260.232 4.024.590
Total accumulated depreciation
22.788.205 1.680.831 24.469.036
Governmental activities capital assets, net $ 48,739,708 $ 5,454595 $ 0 $ 54,19430
Business -Type Activities
9/30/20
Increases Decreases 9/30/21
Capital assets, not being depreciated:
Land S 1,142,320 $ $ $ 1,142,320
Construction in progress 2.053.903 1.617.161 (1.145.295) 2.525,769
Total
3,196,223 1,61',161 :1,145,295: 3,668,089
Capital assets, being depreciated:
Buildings and Improvements 12,953,052 49,478 13,002,530
Improvements 21,344,394 203,325 1,145,295 22,693,014
Equipment 1.355.805 1.355.805
Total
35,653,251 252,803 1,145,295 37,051,349
Less accumulated depreciation for:
Buildings and Improvements 6,95',503 321,744 7,279,247
Improvements 10,408,486 560,509 10,968,995
Equipment 640.785 97.133 737.918
Total accumulated depreciation 18.006.774 979 386 0 18.986,160
Business -type capital assets, net $ 20.842,700 $ 890 578 S 0 $ 21,733278
39
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note C — Capital Assets (Continued)
Depreciation expense was charged to functions/programs as follows:
Governmental Activities
General Government $ 170,166
Public Protection 31,284
Community services 5,550
Streets 876,990
Airport 362,651
Recreation 234,190
Total Depreciation Expense S 1,680,831
Business Activities
Golf Course $ 172,376
Water 807.010
Total Depreciation Expense
Note D — Government Fund Balances
$ 979,386
The Local Option Tax (LOT) was established in 2005 by City Ordinance No. 796, renewed by City Ordinance No. 887 in
2011 effective January 1, 2012, and renewed by City Ordinance No. 965 in 2018 effective January 1, 2019. In 2015, two
additional local LOTs were established by City Ordinance 936. The LOT established in 2011 is to be used for programs
and groups recommended by the LOT commission and approved by City Council. The two additional LOT's established
in 2015 arc to be used primarily for street replacement, repair and maintenance. Highway user fees are restricted by State
Statute and County laws and are legally segregated for funding of infrastructure improvements. Franchise fees are
established by City Ordinance No. 862 in 2009 for the specific use of funding underground utility expansion.
When an expenditure is incurred for purposes for which both restricted and unrestricted fund balance is available, the City
considers restricted funds to have been spent first. When an expenditure is incurred for which restricted, committed,
assigned, or unassigned fund balances are available, the City considers amounts to have been spent first out of committed
funds, then assigned funds, and finally unassigned funds, as needed, unless the City Council has provided otherwise in its
commitment or assignment actions.
Resolution 11-19 was adopted in November of 2011 to establish minimum fund balance f net position policies consisting
of cash flow and budget stabilization. Those minimum balances enable the City to meet debt payments and other
obligations. The minimum balances established for cash flow are expressed as a percentage of the current years' operating
budget. Those minimums are as follows: General Fund — 25%, Special Revenue Funds — 20%, Enterprise Funds — 30%, in
addition to any sums required under loan or bond agreements. The minimum fund balances established for budget
stabilization are expressed as a percentage of the three most recent years' average operating budgets. Those minimums are
as follows: General Fund — 15° o, Special Revenue Funds — 10%. In the event these minimum balances arc used, the City
shall strive to restore the balances to the above levels within no more than three fiscal years following the fiscal year in
which the reserves were used.
40
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note D — Government Fund Balances (Continued)
As of September 30, 2021, fund balances of the governmental funds arc classified as follows:
Nonspendable — amounts that cannot be spent either because they are in nonspendable form or because they arc legally
or contractually required to be maintained intact.
Restricted — amounts that can be spent only for specific purposes because of constitutional provisions or enabling
legislation or because of constraints that are externally imposed by creditors, grantors, contributors, or the laws or
regulations of other governments. Restricted assets included those related to franchise fees, irrevocable split interest
trust assets held for library and DEQ loan reserves.
Committed — amounts that can be used only for specific purposes determined by a formal action of the City Council.
The Council is the highest level of decision -making authority for the City. Commitments may be established,
modified, or rescinded only through ordinances or resolutions approved by the Council.
Assigned — amounts that do not meet the criteria to be classified as restricted or committed but that are intended to be
used for specific purposes. Under the City's adopted policy, only City Council, Finance Director or the Council's
finance committee may assign amounts for specific purposes.
Unassigned — all other spendable amounts.
As of September 30, 2021, fund balances are comprised of the following:
Street/
Public Local Debt Nonmajor
General Works Airport Recreation Library Option Service Funds
Na spendable
Prepaid $ 32,872 S 137,384 $ 0 S 24,000 S 0$ 0$ 0$ 0
Interfund rec 85.000
117,872 137,384 24,000
Restricted
Library 658,840
Highway fee 46,993
Grants 386,850 9,790 334,399
Franchise 1,200,613
1,587,463 46,993 0 9,790 993,239 0 0 0
Assigned
Street/PW 1,420,333
Airport 1,013,224
Library 33,842
Recreation 484,119
Local opt. 688,823 1,856,831
Debt service 4,209,962
Capital Proj. 76.860
688,823 1,420,333 1,013,224 484,119 33,842 1,856,831 4,209,962 76,860
Unassigned 5.384.678 0 0 0 0 0 0 0
Total S 7,778,836 $ 1 604 710 $ 1,1113,224 $ 517,909 $ 1,027,081 5 1,856,831 $ 4,209,962 $ 76 860
41
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note E — Interfund Receivables, Payables, and Transfers
Transfers are indicative of funding for capital projects, lease payments or debt service, subsidies of various City operations and
re -allocations of special revenues. The following schedule briefly summarizes the City's transfer activity. For the year then ended
September 30, 2021, interfund transfers consisted of the following:
Transfer from
General Water Airport Urban Nonmajor
Fund Fund Fund Renewal Governmental Total
Transfer to:
General fund S $ (3"9,355) S (64,555) $ (18,196) S S (462,1061
Golf course fund 302,505 302,505
Library fund 141,017 141,017
Recreation 579,520 1,173,933 1,753,453
Streets 40,522 40,522
Nonmajor 12.996 12.996
5 1,076560 S (379.355) (64,S 5) $ 1 155 737
Note F — Pension Plan
5 0 5 1,788387
Plan Description
The City of McCall contributes to the Base Plan which is a cost•sharing multiple -employer defined benefit pension plan
administered by Public Employee Retirement System of Idaho :PERSI or System) that covers substantially all employees
of the State of Idaho, its agencies and various participating political subdivisions- Thr cost to administer the plan is
financed through the contributions and investment earnings of the plan. PERSI issues a publicly available financial report
that includes financial statements and the required supplementary information for PERSI. That report may be obtained on
the PERSI website at www.persi.tdaho.gov.
Responsibility for administration of the Base Plan is assigned to the Board comprised of five members appointed by the
Governor and confirmed by the Idaho Senate. State law requires that two members of the Board be active Base Plan
members with at least ten years of service and three members who arc Idaho citizens not members of the Base Plan except
by reason of having served on the Board.
Employee membership data related to the PERSI Base Plan, as of June 30, 2021 was as follows:
Retirees and beneficiaries 50,891
Terminated and vested 14,539
Active plan members
Vested 44539
Non vested 29.024
138,991
Pension Benefits
The Base Plan provides retirement, disability, death and survivor benefits of eligible members or beneficiaries. Benefits are
based on members' years of service, age, and highest average salary. Members become fully vested in their retirement
benefits with five years of credited service (5 months for elected or appointed officials). Members are eligible for
retirement benefits upon attainment of the ages specified for their employment classification. The annual service
retirement allowance for each month of credited service is 2.0%i (2.3% for police/firefighters) of the average monthly
salary for the highest consecutive 42 months.
42
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note F — Pension Plan (Continued)
The benefit payments for the Base Plan are calculated using a benefit formula adopted by the Idaho Legislature. The Base
Plan is required to provide a 1°e minimum cost of living increase per year provided the Consumer Price Index increases
1°,o or more. The PERSI Board has the authority to provide higher cost of living increases to a maximum of the Consumer
Price Index movement or 6%, whichever is less; however, any amount above the 1% minimum is subject to review by the
Idaho Legislature.
Member and Employer Contributions
Member and employer contributions paid to the Base Plan are set by statute and arc established as a percent of covered
compensation and earnings from investments. Contribution rates are determined by the PERSI Board within limitations,
as defined by state law. The Board may make periodic changes to employer and employee contribution rates (expressed as
percentages of annual covered payroll) if current rates are actuarially determined to be inadequate or in excess to
accumulate sufficient assets to pay benefits when due.
The contribution rates for employees are set by statute at 60% of the employer rate for general employees and 72°fr for
police and firefighters. As of June 30, 2021 it was `'.16% for general employees and 8.81% for police and firefighters. The
employer contribution rate as a percent of covered payroll is set by the Retirement Board and was 11.94".•o general
employees and 12.28% for police and firefighters. City of McCall's contributions were $525,135 for the year ended
September 30, 2021
Pension Liabilities, Pension Expense (Revenue.", and Defrmd Ouiloa s of Resources and Deferred In jinn s of Resources Related to Pensions
At September 30, 2021, City of McCall reported am asset for its proportionate share of the net pension liability. The net
pension asset was measured as of June 30, 2021, and the total pension liability used to calculate the net pension asset was
determined by an actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions in the Base Plan pension plan relative to the total contributions of all participating PERSI
Base Plan employers. At June 30, 2021, the City's proportion was 0.1152558 percent.
For the year ended September 30, 2021, City of McCall recognized net pension income of $415,807. At September 30,
2021 City of McCall reported deferred outflows of resources and deferred inflows of resources related to pensions from
the following sources:
Deferred Outflows
of resources
Deferred Inflows
of resources
Differences between expected and actual experience $ 134,115 $ 52,911
Changes in assumptions or other inputs 1,044,868
Net difference between projected and actual
Earnings on pension plan investments 0 2,83),0-6
Changes in the employer's proportion and
differences between the employer's contributions
and the employer's proportionate contributions 131,'34 39,447
City of McCall, Idaho's contnbutions
subsequent to the measurement date 142.338
Total $ 1,453,055 5 2,951,434
$142,338 reported as deferred outflows of resources related to pensions resulting from Employer contributions subsequent
to the measurement date will be recognized as a reduction of the net pension liability in the year ending September 30,
2021.
43
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note F — Pension Plan (Continued)
The average of the expected remaining service lives of all employees that are provided with pensions through the System
(active and inactive employees) determined at July 1, 2020 the beginning of the measurement period ended June 30, 2021 is
4.9 and 4.9 for the measurement period June 30, 2021.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be
recognized in pension expense (revenue) as follows:
Year Ending
June 30, Amount
2022 S (470,927)
2023 (424,402)
2024 (370,897)
2025 (735,749)
Actuarial Assumptiau
Valuations are based on actuarial assumptions, the benefit formulas, and employee groups. Level percentages of payroll
normal costs arc determined using the Entry Age Normal Cost Method. Under the Entry Age Normal Cost Method, the
actuarial present value of the projected benefits of each individual included in the actuarial valuation is allocated as a level
percentage of each year's earnings of the individual between entry age and assumed exit age. The Base Plan amortizes any
unfunded actuarial accrued liability based on a level percentage of payroll. The maximum amortization period for the Base
Plan permitted under Section 59-1322, Idaho Code, is 25 years.
The total pension liability in the June 30, 2021 actuarial valuation was determined using the following actuarial
assumptions, applied to all periods included in the measurement:
Inflation 2.30%
Salary inflation 6.35%
Investment rate of return, net of investment expenses 6.35%
Cost of living adjustments 1.00%.
Mortality rates were based on the RP • 2000 combined table for healthy males or females as appropriate with the following
offsets:
• Set back 3 years for teachers
• No offset for male fire and police
• Forward one year for female fire and police
• Set back one year for all general employees and all beneficiaries
An experience study was performed for the period July 1, 2013 through June 30, 2017 which reviewed all economic and
demographic assumptions including mortality. The Total Pension Liability as of June 30, 2021 is based on the results of an
actuarial valuation date of July 1, 2021.
44
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note F — Pension Plan (Continued)
The long-term expected rate of return on pension plan investments was determined using the building block approach and a
forward -looking model in which best estimate ranges of expected future real rates of return (expected returns, net of pension plan
investment expense and inflation) are developed for each major asset class. These ranges are combined to produce the long term
expected rate of return by weighing the expected future real rates of return by the target asset allocation percentage and by adding
expected inflation.
Even though history provides a valuable perspective for setting the investment return assumption, the System rehes primarily on an
approach which builds upon the latest capital market assumptions. Specifically, the System uses consultants, investment managers
and trustees to develop capital market assumptions in analyzing the System's asset allocation. The assumptions and the System's
formal policy for asset allocation are shown below. The formal asset allocation policy is somewhat more conservative than the
current allocation of System's assets.
The best -estimate range for the long-term expected rate of return is determined by adding expected inflation to expected long-term
real returns and reflecting expected volatility and correlation. The capital market assumptions arc as of January 1, 2017.
Capital Markel Assumptions
Asset Class
Core Fixed Income
Broad US Equities
Developed Foreign Equities
Assumed Inflation - Mean
Assumed Inflation - Standard Deviation
Portfolio Arithmetic Mean Return
Portfolio Standard Deviation
Portfolio Long -Term (Geometric) Expected Rate of Return
Assumed Investment Expenses
Portfolio Long -Term (Geometric) Expected Rate of Return, Net
of Investment Expenses
Portfolio Long -Term Real Rate of Return, Net
of Investment Expenses
Portfolio Standard Deviation
Valuation Assumptions Chosen by PERSI Board
Target
Allocation
30.00"
55.00%
15.00° o
Long -Term
Expected
Nominal Rate
of Return
(Arithmetic)
1.80%
8.00%
8.25%
Long -Term
Expected
Real Rate of
Return
(Arithmetic)
(0.20)%
6.00%
6.25%
2.00% 2.00%
1.50% 1.50%
6.18% 4.18%
12.29% 12.29%
5.55°•o 3.46%
0.40 0.40%
5.15°'0 3.06%
Long -Term Expected Real Rate of Return, Net of Investment Expenses 4.05%
Assumed Inflation
Long -Term Expected Nominal Rate of Return, Net
of Investment Expenses
15
4.14%
14.16%
2.3°f°
6.35%
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note F — Pension Plan (Continued)
Discount Rate
The discount rate used to measure the total pension liability was 7.05%. The projection of cash flows used to determine
the discount rate assumed that contributions from plan members will be made at the current contribution rate. Based on
these assumptions, the pension plans' net position was projected to be available to make all projected future benefit
payments of current plan members. Therefore, the long-term expected rate of return on pension plan investments was
applied to all periods of projected benefit payments to determine the total pension liability. The long-term expected rate of
return was determined net of pension plan investment expense but without reduction for pension plan administrative
expense.
.Sensitio t} oft& Employer's proportionate share of the net pension liability to changes in the discount rate.
The following presents the Employer's proportionate share of the net pension liability calculated using the discount rate of
percent, as well as what the Employer's proportionate share of the net pension liability would be if it were calculated
using a discount rate that is 1 percentage -point lower or 1 -percentage -point higher than the current rate:
Employer's proportionate share
Of the net pension liability (asset)
Pension plan fiduciary net position
1°-0 Decrease
(5.35%)
Current Discount Rate
(6.35%)
1% Increase
(7.35%)
$ 3,164.279 S (91.207) 5--(2.25.9-4.66i)
Detailed information about the pension plan's fiduciary net position is available in the separately issued PERSI financial
report.
PERSI issues a publicly available financial report that includes financial statements and the required supplementary
information for PERSI. That report may be obtained on the PERSI website at www.persi.idaho.gov.
Payables to the pension plan
At September 30, 2021, the City reported no payables to the defined benefit pension plan for legally required employee
contributions.
46
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note G — Leases
Operating Leaser. The City leases office space, construction and office equipment under non -cancelable operating leases. Lease
expense for this equipment was S318,830 for the year ended September 30, 2021. Certain leases contain balloon payments at
the end of the lease if the City chooses to purchase the asset. These payments are contingent on the City purchasing the asset
and are not included in the amounts below. The future minimum lease payments for these leases are as follows:
Year Ended
September 30
2022
2023
2024
2025
2026
Amount
$ 31-,454
170,'02
65,499
6,396
0
S 560 051
Capital Leaser. The City has entered into lease agreement as lessee for financing the acquisition of equipment for the golf
course. These lease agreements qualify as a capital lease for accounting purposes and, therefore, have been recorded at the
present value of the future minimum lease payments as of the dates of -Inception. The future minimum lease obligations and
the net present value of the minimum lease payments as of September 30, 2021
were as follows:
Year Ended
September 30
2022
2023
Total minimum lease payments
Less: Amount representing interest
Present value of minimum lease payments
Amount due within one year
Amount due in more than one year
47
Golf
Fund
$ 25,030
25.030
50,060
(4.859)
$ 45 201
$ 21,827
23.374
S 45 201
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note H — Long -Term Debt
Water Fund:
The City has pledged future water customer revenues, net of specified operating expenses, to repay a $5.9 million drinking
water facility promissory note payable to the State of Idaho signed in April 2004. Proceeds from the note provided
financing to complete phase II of the water treatment facility. The bonds are payable solely from drinking water facility
revenues and arc payable through 2024. Annual pnncipal and interest payments on the note arc expected to require less
than 20 percent of net revenues.
The remaining payments are $179,955 due semiannually, including interest at 2% throughout the term of the loan. The
schedule of dela service requirements until matunty, is as follows:
Maturity Date Principal Interest
2022 S 340,970 $ 19,163
2023 347,595 12,314
2024 354.633 5,328
1,043,198 5 36.805
1Jbray Fund: The City has obtained a general obligation bond to construct a new library facility. The project is estimated
to begin construction in FY2022. Payments range from $239,56 to $25,,500 and are due annually. The bond will be
repaid over 20 years at a 4% interest rate. The schedule of debt service requirements until maturity is as follows:
Maturity Date Principal Interest
2022 $ 120,000 S 119,756
2023 135,000 122,000
2024 140,000 116,600
2025 145,000 111,000
2026 150,000 105,200
2027-2031 845,000 431,400
2032-2036 1,010,000 268,350
2037-2041 1,170.000 107.550
$ 3,715,000 S 1381,856
4k
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note H — Long -Term Debt (Continued)
CGanges nr Lorg.Term Ilabilities
During the year ended September 30, 2021, the following changes occurred in long-term debt:
Balance Balance Due Within
9/30/20 Jncreases Decreases 9/30/21 One Year
Goren/meal Activities
Compensated absences $ 206,149 $ 13,618 $ (8,881) $ 210,886 $
Bonds payable 0 3 715 000 1715.000 120.000
Total S 206,149 $ 3,728,618 S (&881) $ 3,925,886 5 120.000
Bu mess -type Activities
Capital Leases $ 65,583 $
Compensated absences 49,702
Notes Payable 1.377.295
4,322
Total S 1492.580 S
Note I — Risk Management
(20,382) $ 45,201 $
(24) 54,000
(334.097) 1.043.198
21,827
340.970
4_322 S (354503) 5 1,142 399 $ 362 797
The government is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets; errors
and omissions; and natural disasters for which the government carries commercial insurance.
Note J — Risks and Uncertainties
The COVID-19 pandemic is having significant effects on markets, supply chains, businesses, and communities. The extent
of the impact of COVID-19 on the City's operational and financial performance will depend on certain developments,
including the duration and spread of the outbreak and its impacts on the City's funding sources, employees, and vendors,
all of which at present, cannot be determined. Accordingly, the extent to which COVID • 19 may impact the City's financial
position and changes in net assets and cash flows is uncertain and the accompanying financial statements include no
adjustments relating to the effects of this pandemic. Management is actively monitoring the situation on its financial
condition, liquidity, operations, suppliers, industry, and workforce.
49
CITY OF MCCALL, IDAHO
NOTES TO FINANCIAL STATEMENTS
Note K — Component Unit
The McCall Redevelopment Agency (MRA or the Agency) is created by and exists under the Idaho Urban Renewal Law of
1965, as amended, and is a separate legal entity. It follows the same accounting policies outlined above for the city. The
following is additional information on the URA.
Cash and lnnesinents
At September 30, 2022, the URA held $74,675 at US Bank and $882,294 in the local general investment pool.
Capital Assets
9/30/20 Increases Decreases 9/30/21
Capital assets, not being depreciated:
Land $ 293,115 $ $ $ 293,115
Capital assets, being depreciated:
Buildings and improvements 3,498,650 3,498,650
Less accumulated depreciation (2.699.360) (331.860) (3,031,220)
Buildings and improvements, net 799.290 (331.860) 0 467,430
Total $ 1.492.405 S .. __ (331,860) $ 0. S 760.545
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF MCCALL, IDAHO
GENERAL FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Budget
Original
And Final Actual Variance
Revenues
Property taxes S 3,831,097 $ 3,731,659 S (99,438)
Local option tax 712,249 845,425 133,176
Grants - intergovernmental 900,643 1,641,574 740,931
Licences, permirs and fees 283,600 689,582 405,982
Charges for services 1,361,729 827,263 (534,466)
Fines 33,600 33,897 297
Interest 50,000 16,336 (33,664)
Miscellaneous 3,300 14,228 10,928
Total Revenue.
7,176,218 ",'99,964 623,746
Expenditures
Mayor and council 226,127 282,559 (56,432)
Network administration 459,430 411,210 48,220
City manager 450,147 461,291 (11,144)
Administration 331,354 328,604 2,750
Finance Department 393,240 399,091 (5,851)
Public safety 1,768,038 1,859,278 (91,240)
Parks and recreation 53,559 0 53,559
City clerk 289,433 271,647 17,786
Community Services 929,864 715,555 214,309
Local option tax 1,011,800 543,440 468,360
Capital outlay 2,989,001 1,084,194 1,904,807
Total Expenditures 8,901,993 6,356,869 2,545,124
Excess (Deficiency) of Revenues Over Expenditures (1,725,775) 1,443,095 3,168,870
Other Financing Sources (Uses)
Transfers in (out) 1,725,775 (650,846) (2,376,621)
Total Other Financing Sources 1,725,775 (650,846) (2,376,621)
Net Change in Fund Balance 792,249 792.249
Fund Balance, Beginning of Year 6.986.587 6.986.587
Fund Balance, End of Year S 6.986.587 S 7.778.836
52
CITY OF MCCALL, IDAHO
STREET / PUBLIC WORKS FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Revenues
Property taxes
Local option tax
Grants - intergovernmental
Charges for services
Earnings on investments
Miscellaneous
Total Revenue
Expenditures
Streets
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses)
Transfers in (out)
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
Budget
Original
And Final
S 1,720,090 5
119,000
995,128
44,222
10,000
7,500
Actual
1,712,839 $
217,284
35,277
2,674
18,010
Variance
(7,251;
(119,000)
(777,844)
(8,945)
(7,326)
10,510
2,895,940 1,986,084 (909,856;
2,411,760 1,614,126 797,634
1,110,987 202,454 908,533
3,522,747 1,816,580 1,706,167
(626,807) 169,504 796,311
626,807 40,522 (586,285)
626,807 40,522 (586,285)
210,026 S 210.02(2
1.394.684 1.394.684
S 1.394.684 S 1.604.710
53
CITY OF MCCALL, IDAHO
LIBRARY FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Budget
Original
And Final Actual Variance
Revenues
Propert) taxes S 463,004 $ 506,055 $ 43,051
Local option tax 250,110 (250,110)
Grants - intergovernmental 250,000 9,772 (240,228)
Charges for services 11,225 10,992 (233)
Earnings on investments 3,124 (3,124)
Miscellaneous 4,700 16,030 11,330
Total Revenue
982,163 542,849 (439,314)
Expenditures
Community services • library 360,628 357,847 2,781
Capital outlay 932,341 133,872 798,469
Total Expenditures 1,292,969 491,719 801,250
Excess (Deficient). of Revenues Over I?xpenditures (310,806) 51,130 361,936
Other Financing Sources (Uses)
Transfers in (our) 310,806 141,017 (169,789)
Total Other Fin snring Sources 310,806 141,017 (169,789)
Net Chanyr in Fund Balance 192,147 aS 192.147
Fund Balance, Beginning of Year 834,934 834.934
Fund Balance, End of Year S 834.934 S 1.027.081
54
CITY OF MCCALL, IDAHO
RECREATION FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Revenues
Property taxes
Local option taxes
Grants - intergovernmental
Charges for services
Earnings on investments
\(iscellaneous
Total Revenue
Expenditures
Recreation
Capital outlay
Total Expenditures
Excess (Deficiency) of Revenues Over Expenditures
Other Financing Sources (Uses)
Transfers in ;out)
Total Other Financing Sources
Net Change in Fund Balance
Fund Balance, Beginning of Year
Fund Balance, End of Year
S
Budget
Original
An Fin I
266,907 $
76,567
176,304
227,892
4,992
13,750
Actual
28",82a $
165,44,
61,656
39,099
466
21,133
Variance
20,913
88,880
(114,648)
(188,793)
(4,526)
7,383
766,412 5'5,621 (190,791)
1,263,067 1,057,570 205,497
863,824 1,391,360 (527,536)
2,126,891 2,448,930 (322,039)
(1,360,479) (1,873,309) (512,830)
1,360,479 1,753,453 392,974
1,360,479 1,753,453 392,974
(119,856) S (119.8561
637.765 637.765
S 637.765 $ 517.909
5S
CITY OF MCCALL, IDAHO
AIRPORT
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Budget
Original
And Final Actual Variance
Revenues
Property taxes 87,628 S 81,809 5 (5,819)
Grants - intergovernmental 11,301,250 2,549,848 (8,751,402)
Licenses, permits and fees 273,833 312,069 38,236
Earnings on investments 1,230 1,608 378
Miscellaneous 21,750 2,211 (19,539)
Total Revenue 11,685,691 2,94',545 (8,738,146)
Expenditures
Airport 347,655 248,662 98,993
Capital outlay 11,338 036 2,549,895 8,788,141
Total Expenditures 11,685,691 2,798,557 8,887,134
Excess (Defictenc}: of Revenues Over Expenditures 148,988 148,988
Other Financing Sources (Uses)
Transfers in 'out. (64,555) (64,555)
Total Other Financing Sources 0 (64,555) (64,555)
Net Change in Fund Balance 84,433 S 84.433
Fund Balance, Beginning of Year 928.791 928.791
Fund Balance, End of Year $ 928.791 I_ 1.013.224
56
CITY OF MCCALL, IDAHO
LOCAL OPTION TAX
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Budget
Original
And Final; Actual Variance
Revenues
Local options tax $ 2,113,000 S 2,859,934 S 746,934
Grants 1,857,807 129,048 (1,728,759)
Earnings on investments 25,165 3,091 (22,074)
Miscellaneous 32,906 32,906
Total Revenue 3,995,972 3,024,979
Expenditures
Local option tax 676,943 182,334
Capital outlay 3,636,629 1,773,651
Total Expenditures 4,313,572 1,955,985
Excess (Deficiency) of Revenues Over Expenditures (317,600) 1,068,994
Other Financing Sources (Uses)
Transfers in',out) 12,996
(970,993)
494,609
1,862,978
2,357,587
1,386,594
12,996
Total Other Financing Sources 12,996 12,996
Net Change in Fund Balance (317,600) 1,081,990 S 1.399390
Fund Balance, Beginning of Year 774,841 774,841
Fund Balance, End of Year S 457.241. 5 1.856.831
57
CITY OF MCCALL, IDAHO
DEBT SERVICE FUND
STATEMENT OF REVENUES, EXPENDITURES AND CHANGES IN FUND BALANCE
BUDGET AND ACTUAL
For the Year Ended September 30, 2021
Budget
Original
And Final Actual Variance
Revenues
Earnings on investments S $ 125 $ 125
Total Revenue 125 125
Expenditures
Bond • cost of issuance expenses 69,598 (69,598)
Total Expenditures 69,598 (69,598)
Excess (Deficienc}' of Revenues O% er Expenditures (69,473) (69,4`3)
Other Financing Sources (Uses)
Debt proceeds, net of expenses 4,279,435 4,279,435
Total Other Financing Sources 4,279,435 4,279,435
Net Change to Fund Balance 5 fl 4,209,962 4.209.96Z
Fund Balance, End of Year
Fund Balance, End of Year 5 4.209.962
5g
SCHE DULE OF EMPL OYER'S SHARE OF N ET PENSION LIABILITY AND
EMPLO YER CONTRIB UTI ONS
For the Ye ar End ed Septemb er 30, 2021
Schedule of Empl oyer's Share of Net Pensi on Liability
PE RSI - Base Plan
Last 10 - Fiscal Y ears *
2015 2016 2017 2018 2019 2020 2021
Employer's portion of the net pe nsio n liability 0 .12% 0 .13°'0 0 12° o 0.11° '0 0.11°o 0.11°o 0.12°%°
Employer's proportionate share of the net pension liability S 1,633,159 $ 2,479,805 S 1,834,028 S 1,652,595 S 1,259,037 S 2,516,325 S (91,027)
Employers co vered -employee pa}roll S 3 ,516,395 S 3,'36,238 S 3,782,093 S 3,820,157 S 3,'91,'42 S 3,884,161 S 4,372,845
Employer's proportion ate share of net p ension liability as a perce ntage
of its cove red -e mployee payroll 46 44% 66 .37.o 48 49° b 43.26''0 33 .20% 4 64?8% -2 .08%
Plan fidu ciary net position as a percentage of total pe nsio n liability 91.38'", 87.26°' . 90.68' 91 .69 ' 93 -'9"° 88.22% 100.36%
C;ASB Stateme nt N o.68 requires te n years of information to be prese nted in this tabl e. I [uwever, until a full 10 y ear
trend is compiled, the City will present information for thosL: years for which informatio n is a vailable.
Data repo rted is measu red as of ;u m; 30, 2021 rmeasurcmrnt dater
Sched ule of Empl oyer C ontributions
PERSI - Base Pl an
Last 10 - Fiscal Y ears *
2015 2016 2017 2018 2019 2020 2021
Statu torily require d contribution
Contributions in relation to statutonly r equired con tribution
Contribu tion (de ficie ncy) excess
Employe rs covere d -employee payroll
(=ontribu ttons as a percc ntal;e of covere d -employee payroll
S 393,234 S 409,600 S 425,774 S 430,678 S 449,13. . S 493,865 S 525,135
S 393,234 S 409,600 S 425,-'4 S 430,6?8 S 449,13' S 493,865 S 525,135
S 3,516,395 S 3,624,112 S 3,'73,89 S 3,839,839 S 3,934,882 S 4,115,620 S 4,372,845
11.18°o 11 .43% 11.28°o 11.22% 11 .41% 12.00% 12.01%
* G ISB Statemen t N o. 68 requires ten years of information to be presented in this table. 1 [uwever, until a full 10 -year
tre nd is compiled, the City will present information for those years for which Information t. available.
D ata rep orted is measured as of September 30, 202! (The City's fiscal year en d)
Sec accompanying n otes to basic fin an cial state ments
S9
SUPPLEMENTARY INFORMATION
FEDERAL REPORTS
HARRIS
INDEPENDENT AUDITORS' REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS
BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED
IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS
To the City Council
City of McCall, Idaho
McCall, Idaho
We have audited, in accordance with the auditing standards generally accepted in the United States of America and the
standards applicable to the financial audits contained in Goienuuent Auditing Standards issued by the Comptroller General
in the United States, the financial statements financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of City of McCall, Idaho, as of and for the year ended September 30, 2021, and the related notes to the
financial statements, which collectively compnse the City of McCall, Idaho's basic financial statements and have issued
our report thereon dated.
Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City of McCall, Idaho's internal
control over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinion on the financial statements, but not for the purpose of
expressing an opinion on the effectiveness of City of McCall, Idaho's internal control. Accordingly, we do not express an
opinion on the effectiveness of City of McCall, Idaho's internal control.
A drfrcieacy in iuterrral control exists when the design or operation of a control does not allow management or employees, in
the normal course of performing their assigned functions, to prevent, or detect and correct misstatements on a timely
basis. A material weakness is a deficiency, or a combination of deficiencies, in internal control such that there is a
reasonable possibility that a material misstatement of the entity's financial statements will not be prevented, or detected
and corrected on a timely basis. A signifuant defrciency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged with governance.
Our consideration of internal control was for the limited purpose described in the first paragraph of this section and was
not designed to identify all deficiencies in internal control that might be material weaknesses or, significant deficiencies.
Given these limitations, during the audit we did not identify any deficiencies in internal control that we consider to be
material weaknesses. However, material weaknesses may exist that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City of McCall, Idaho's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and
grant agreements, noncompliance with which could have a direct and material effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of our
audit, and accordingly, we do not express such an opinion. The results of our tests disclosed no instances on
noncompliance that arc required to be reported under Government Auditing Standards.
Mnt &r# 681sfl MIN FALLS 6#1L COEUR D'ALENE HARRISCPAS.COM
4
4
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance and the
results of that testing, and not to provide an opinion on the effectiveness of the entity's internal control or on
compliance. This report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the entity's internal control and compliance. Accordingly, this communication is not suitable for any other
purpose.
'AFeridian, Idaho
June 30, 2022
HARRIS
CPAs
INDEPENDENT AUDITORS' REPORT ON COMPLIANCE FOR EACH
MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE
To the City Council
City of McCall, Idaho
McCall, Idaho
Report on Compliance for Each Major Federal Program
We have audited City of McCall, Idaho's compliance with the types of compliance requirements described in the OMB
Compliance Supplement that could have a direct and material effect on each of the City of McCall, Idaho's major federal
programs for the year ended September 30, 2021. City of McCall, Idaho's major federal programs are identified in the
summary of auditor's results section of the accompanying schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with thr requirements of laws, regulations, contracts and grant applicable to
its federal programs.
Auditors' Responsibility
Our responsibility is to express an opinion on compliance for each of City of McCall's major federal programs based on
our audit of the types of compliance requirements referred to above. We conducted our audit of compliance in
accordance with auditing standards generally accepted in the United States of America; the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States; and
the audit requirement of Title 2 U.S. Code of Federal Regulations Part 200, Uuiforu Administrative Requirements, Cost
Principles, and Audit Requirements for Federal Awards (Uniform Guidance). Those standards and The Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance with the types
of compliance requirements referred to above that could have a direct and material effect on a major federal program
occurred. An audit includes examining, on a test basis, evidence about City of McCall's compliance with those
requirements and performing such other procedures as we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major federal program.
However, our audit does not provide a legal determination of City of McCall's compliance.
Opinion on Each Major Federal Program
In our opinion, City of McCall, complied, in all material respects, with the types of compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended September
30, 2021.
MERIDIAN 8015E r1 IM FALLS @UHL COEVR D'AL£NE HARRISCPAS.COM
O
4
Report on Internal Control over Compliance
Management of the City of McCall, Idaho, is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing our audit, we
considered the City of McCall, Idaho's internal control over compliance with the types of requirements that could have a
direct and material effect on a major federal program to determine the auditing procedures that are appropriate in the
circumstance for the purpose of expressing our opinion on compliance for each major federal program and to test and
report on internal control over compliance in accordance with the Uniform Guidance, but not for the purpose of
expressing an opinion on the effectiveness of internal control over compliance. Accordingly, we do not express an
opinion on the effectiveness of the City of McCall, Idaho's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over compliance does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or detect and
correct, noncompliance with a type of compliance requirement of a federal program on a timely basis. A material nreaknrjs
in internal control on'er compliance is a deficiency, or combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis. A signifncannt deficiency in mtrrnai control onr
compliance is a deficiency, or a combination of deficiencies in internal control over compliance with a type of compliance
requirement of a federal program that is less severe than a material weakness in internal control over compliance, yet
important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first paragraph of
this section and was not designed to identify all deficiencies in internal control over compliance that might be material
weaknesses or significant deficiencies. We did not identify any deficiencies in internal control over compliance that we
considered to be material weaknesses. However, material weaknesses may exit that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing of internal
control over compliance and the results of that testing based on the requirements of the Uniform Guidance.
Accordingly, this report is not suitable for any other purpose.
Meridian, Idaho
June 30, 2022
CITY OF MCCALL, IDAHO
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2021
Federal Pass -Through
CFDA Entity Identifying Federal
Federal Grantor/Program Title Number Number Expenditures
U.S. DEPARTMENT OF INTERIOR:
Pass through from State of Idaho
Historic Preservation — CLG 15.904 CLG-2020-10 510
Outdoor Recreation Acquisition,
Development and Planning 15.916 P19AP00218 / 16-0589 S 61.358
Total US Department of Interior 61,868
U.S. DEPARTMENT OF TRANSPORTATION:
Pass through from State of Idaho
Higbnay Safety Clutter.
State and Community Highway Safety 20.600 SB-2021-EB-00-00 3,251
National Priority Safety Programs 20.616 OP -2021 -EA -00-00 656
Total Highway Safety Cluster 3,907
Hrgl»ray Planning and Construction Clutter:
Idaho Transportation Investment Program 20.205 A020 (146) 98.263
Total Highway Planning and Construction Cluster 98,263
Direct Program:
Airport Improvement Program 20.106 N/A 2,549,848
Total US Department of Transportation 2,652,018
-.S. DEPARTMENT OF THE TREASURY:
CARES Act Funding
Pass through from State of Idaho Controller's Office
CARES Act- Broadband & GPSGI 21.019 20-1892-0-1-806 627,069
I -.S. DEPARTMENT OF JUSTICE
Direct Program:
Bulletproof Vest Partnership Program
16.607
4'.5. DEPARTMENT OF HOUSING AND URBAN DEVELOPMENT
Pass through from State of Idaho
Idaho Community Development Block Grant 10.351 ICDBG-21-HI-16-SR
1,593
5,866
NATIONAL ENDOWMENT FOR THE HUMANITIES:
Pass through from State of Idaho
CARES Act grant 45.310 LS-246530-OLS-20 1,149
Grants to States 45.129 SO -263500-49 7.427
Total National Endowment for the Humanities 8,576
Total expenditures of federal awards S 3,356,990
See notes to the schedule of expenditures of federal awards
66
CITY OF MCCALL, IDAHO
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
For the Year Ended September 30, 2021
Note A— Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of City of McCall,
Idaho and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance
with the requirements of Title 2 U.S. Code of Federal Regulations Part 200, Umfom Administrative Requirements, Cost Principles,
and Audit Requirements for Federal Awards (Uniform Guidance). Because this schedule presents only a selected portion of
the operations of the City of McCall, Idaho, it is not intended to and does not present the financial position, changes in
net position, or cash flows to the City of McCall, Idaho.
Note B — Summary of Significant Accounting Policies
Expenditures reported on the schedule are reported on the accrual basis of accounting. Such expenditures arc
recognized following the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are
not allowable or arc limited as to reimbursement.
Note C — Indirect Cost Rate
The City of McCall, Idaho has elected not to use the 10 percent de minimis indirect cost rate as allowed under the
Uniform Guidance.
67
CITY OF MCCALL, IDAHO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30, 2021
SECTION I — SUMMARY OF AUDIT RESULTS
Financial Statements
Type of auditors' report issued: Unmodified
Internal control over financial reporting:
• Material weakness identified? yes no
• Significant deficiencies identified that arc not
considered to be material weaknesses? yes X no
Noncompliance material to the financial
statements noted? yes X no
Federal Awards
Internal control over major programs:
• Material weakness identified? yes no
• Significant deficiencies identified that arc not
considered to be material weaknesses? X yes no
Type of auditors' report issued on compliance for major programs: L.nmodified
Any audit findings disclosed that arc required
to be reported in accordance with section
510(a: of the Uniform Guidance? X yes no
Identification of major program~:
CFDA Number Name of Federal Program
20.106 Airport Improvement Program
Dollar threshold used to distinguish between
type A and type B programs: $ 750,000
Auditec qualified as a low.risk auditee? yes X no
SECTION II — FINANCIAL STATEMENT FINDINGS
No findings related to the financial statements were noted which would be required to be reported under generally
accepted governmental auditing standards (GAGAS;.
68
CITY OF MCCALL, IDAHO
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
For the Year Ended September 30, 2021
SECTION III — FEDERAL AWARD FINDINGS AND QUESTIONED COSTS
2021-001 Federal Reporting
Criteria:
During the course of our engagement, it was discovered that the City had not submitted the SF270/271 reports for their
AlP projects worked on dunng the year.
Condition:
1n internal control system design must include elements to insure all reports arc filed on time as required by grant
compliance.
Cause:
The City had staffing changes in Airport manager midyear and did not have a redundancy policy in place to ensure
reports were submitted to the proper federal authority.
Effect:
Required reports not being submitted could violate compliance standards and jeopardize future funding grants.
Recommendation:
Management should develop a redundancy process to ensure all required reports are submitted regardless of staffing
changes or business disruptions.
l 'ien s of Responsible Officials and Conrrtir.+r Alton Pun:
Management agrees with the finding and is working to develop a process to ensure all reports are fled on time.
69
CITY OF MCCALL, IDAHO
SCHEDULE OF PRIOR AUDIT FINDINGS
For the Year Ended September 30, 2021
2020-001 Financial Statement Preparation
Condition:
An internal control system design must include elements to accurately prepare financial statements without adjustments
by the auditor. As auditors, we were requested to assist management in the preparation of the financial statements from
the trial balances. This preparation included certain closing entries, government —wide reporting conversion entries and
footnotes.
Resolution:
Management assisted with the preparation and approved the financial statements in the current year. This was not a
finding in the current year.
2020-002 Material Audit Adjustments
Condition:
.1n internal control system design must include elements to properly reconcile account balances at year-end, post closing
entries, and to record items in accordance with generally accepted accounting principles.
Resolution:
Management refined their review process and did not have any material adjustments that were not known at the start of
fieldwork. This was not a finding in the current year.
70
Exhibit 2 FY2022
Budget
CITY OF MCCALL McCall Redevelopment Agency FY22 Amended Budget Page: 1
Period: 13/22 Oct 12, 2022 04:00PM
2020-21 2020-21 2021-22 2021-22
Prior year Prior year Current year Amended
Account Number Account Title Actual Budget Actual Budget
URBAN RENEWAL AGENCY FUND
URBAN RENEWAL FUND REVENUE
90-30-010-100.0 TAX INCREMENT 782,833.42 793,819 28,104.58 28,105
Total TAX INCREMENT REVENUE:782,833.42 793,819 28,104.58 28,105
90-30-045-100.0 INTEREST INCOME 2,961.80 8,400 920.73 925
Total INTEREST REVENUE:2,961.80 8,400 920.73 925
90-30-050-997.0 APPROPRIATED FUND BALANCE .00 1,215,162 .00 538,313
Total APPROPRIATED FUND BALANCE:.00 1,215,162 .00 538,313
90-30-055-998.0 CARRY FORWARD .00 .00 .00 .00
Total CARRY FORWARD REVENUE:.00 .00 .00 .00
90-30-060-983.0 TRANSFER FROM CAPITAL PRJ..00 .00 .00 .00
Total Source: 060:.00 .00 .00 .00
90-30-070-900.0 MISCELLANEOUS REVENUE 16,442.52 .00 300.00 300
90-30-070-990.0 CASH OVER\(SHORT).00 .00 .00 .00
Total OTHER REVENUE:16,442.52 .00 300.00 300
Total URBAN RENEWAL FUND REVENUE:802,237.74 2,017,381 29,325.31 567,643
CITY OF MCCALL McCall Redevelopment Agency FY22 Amended Budget Page: 2
Period: 13/22 Oct 12, 2022 04:00PM
2020-21 2020-21 2021-22 2021-22
Prior year Prior year Current year Amended
Account Number Account Title Actual Budget Actual Budget
URBAN RENEWAL AGENCY EXPENSES
90-40-150-300.0 PROFESSIONAL SERVICES 59,624.67 51,250 7,467.76 5,500
90-40-150-350.0 ENGINEER SERVICES .00 100,000 .00 .00
90-40-150-410.0 INSURANCE 1,546.00 1,546 .00 .00
90-40-150-657.0 BANK CHARGES 1,989.05 1,625 2,051.31 2,509
Total OPERATING EXPENSE:63,159.72 154,421 9,519.07 8,009
90-40-200-700.0 DT PUBLIC ART 101,750.00 90,000 5,000.00 5,000
90-40-200-998.0 RESERVED - FUTURE CAPITAL .00 .00 .00 .00
Total CAPITAL EXPENSE:101,750.00 90,000 5,000.00 5,000
90-40-250-700.0 GRANT - EDA CONFERENCE CENTER .00 .00 .00 .00
Total GRANT RELATED EXPENSE:.00 .00 .00 .00
90-40-350-500.0 REVENUE BOND PRINCIPAL .00 .00 .00 .00
90-40-350-510.0 REVENUE BOND INTEREST .00 .00 .00 .00
90-40-350-514.0 REVENUE BOND RESERVE .00 .00 .00 .00
90-40-350-810.0 US BANK REVENUE BOND PRINCIPAL .00 .00 .00 .00
90-40-350-811.0 US BANK REVENUE BOND INTEREST .00 .00 .00 .00
90-40-350-985.0 AMORTIZATION EXPENSE .00 .00 .00 .00
Total DEBT RELATED EXPENSE:.00 .00 .00 .00
90-40-600-970.0 DONATED ASSETS - CITY .00 .00 .00 .00
90-40-600-971.0 FUND TRF-COMMERCIAL WATERFRONT 1,173,932.66 1,772,960 602,455.19 554,634
Total INTER-FUND TRANSFER EXPENSE:1,173,932.66 1,772,960 602,455.19 554,634
90-40-650-980.0 DEPRECIATION EXPENSE 331,860.00 .00 .00 .00
Total Classification: 650:331,860.00 .00 .00 .00
Total URBAN RENEWAL AGENCY EXPENSES:1,670,702.38 2,017,381 616,974.26 567,643
URBAN RENEWAL AGENCY FUND Revenue Total:802,237.74 2,017,381 29,325.31 567,643
URBAN RENEWAL AGENCY FUND Expenditure Total:1,670,702.38 2,017,381 616,974.26 567,643
Net Total URBAN RENEWAL AGENCY FUND:868,464.64-.00 587,648.95-.00
CITY OF MCCALL McCall Redevelopment Agency FY22 Amended Budget Page: 3
Period: 13/22 Oct 12, 2022 04:00PM
2020-21 2020-21 2021-22 2021-22
Prior year Prior year Current year Amended
Account Number Account Title Actual Budget Actual Budget
DT W URBAN RENEWAL PRJ.
DT W URBAN RENEWAL PRJ REVENUE
91-30-010-100.0 TAX INCREMENT 83,835.74 84,664 153,377.15 100,500
Total TAX INCREMENT REVENUE:83,835.74 84,664 153,377.15 100,500
91-30-045-100.0 INTEREST INCOME .00 1,000 208.31 1,000
Total INTEREST REVENUE:.00 1,000 208.31 1,000
91-30-050-997.0 APPROPRIATED FUND BALANCE .00 .00 .00 .00
Total APPROPRIATED FUND BALANCE:.00 .00 .00 .00
91-30-070-900.0 MISCELLANEOUS REVENUE 1,753.64 .00 .00 .00
Total OTHER REVENUE:1,753.64 .00 .00 .00
Total DT W URBAN RENEWAL PRJ REVENUE:85,589.38 85,664 153,585.46 101,500
CITY OF MCCALL McCall Redevelopment Agency FY22 Amended Budget Page: 4
Period: 13/22 Oct 12, 2022 04:00PM
2020-21 2020-21 2021-22 2021-22
Prior year Prior year Current year Amended
Account Number Account Title Actual Budget Actual Budget
DT W URBAN RENEWAL PRJ EXPNSES
91-40-150-300.0 PROFESSIONAL SERVICES .00 20,000 4,815.00 20,000
91-40-150-400.0 ADVERTISING/LEGAL PUBLICATIONS .00 .00 1,080.00 .00
91-40-150-410.0 INSURANCE .00 .00 1,673.00 1,673
91-40-150-657.0 BANK CHARGES .00 .00 430.05 .00
Total OPERATING EXPENSE:.00 20,000 7,998.05 21,673
91-40-200-998.0 RESERVED - FUTURE CAPITAL .00 65,664 .00 79,827
Total CAPITAL EXPENSE:.00 65,664 .00 79,827
Total DT W URBAN RENEWAL PRJ EXPNSES:.00 85,664 7,998.05 101,500
DT W URBAN RENEWAL PRJ. Revenue Total:85,589.38 85,664 153,585.46 101,500
DT W URBAN RENEWAL PRJ. Expenditure Total:.00 85,664 7,998.05 101,500
Net Total DT W URBAN RENEWAL PRJ.:85,589.38 .00 145,587.41 .00
Net Grand Totals:782,875.26-.00 442,061.54-.00