HomeMy Public PortalAbout2015-2016 Audit Issued Financial StatementsMoab City Corporation
Grand County, Utah
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2016
Moab City Corporation
TABLE OF CONTENTS
June 30, 2016
Beginning
on page
INDEPENDENT AUDITOR'S REPORT 1
MANAGEMENT'S DISCUSSION AND ANALYSIS 3
BASIC FINANCIAL STATEMENTS 13
Government -wide Financial Statements:
Statement of Net Position 15
Statement of Activities 16
Fund Financial Statements:
Balance Sheet - Governmental Funds 18
Statement of Revenues, Expenditures, and Changes
in Fund Balances - Governmental Funds 19
Reconciliation of the Balance Sheet of Governmental
Funds to the Statement of Net Position 20
Reconciliation of the Statement of Revenues, Expenditures,
and Changes in Fund Balances of Governmental
Funds to the Statement of Activities 21
Statement of Net Position - Proprietary Funds 22
Statement of Revenues, Expenses, and Changes
in Net Position - Proprietary Funds 23
Statement of Cash Flows - Proprietary Funds 24
Notes to Financial Statements 26
REQUIRED SUPPLEMENTARY INFORMATION 45
Notes to Required Supplementary Information 47
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General Fund 48
Schedule of the Proportionate Share of the Net Pension Liability 49
Schedule of Contributions 50
(Continued on following page)
Moab City Corporation
TABLE OF CONTENTS
June 30, 2016
COMBINING STATEMENTS
Combing Balance Sheet - Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes
in Fund Balances - Governmental Funds
OTHER REPORTS
Beginning
on page
51
52
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 53
Independent Auditor's Report on Compliance in Accordance
with the State Compliance Audit Guide 55
d Larson
AN _
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT
Honorable Mayor
Members of the City Council
Moab, Utah
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, each major fund, and the aggregate remaining fund information of Moab City, Utah (herein
referred to as the "City"), as of and for the year ended June 30, 2016, 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.
Those standards require that we plan and perform the audit to obtain reasonable assurance about
whether the financial statements are free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of
the entity's internal control. Accordingly, we express no such opinion. An audit also includes evaluating
the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluating the overall presentation of the financial
statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business -type activities, each major fund,
and the aggregate remaining fund information of Moab City, as of June 30, 2016, and the respective
changes in financial position and, where applicable, cash flows thereof for the year then ended in
accordance with accounting principles generally accepted in the United States of America.
Larson 8c Company
765 North Main, Spanish Fork, Utah 84660
Main: (801) 798-3545 Fax: (801) 798-3678
www.Iarsco.Com
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A!ember of
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INTERNATRII❑NRL
Crowe Hnlvealh international-
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and other required supplementary information on pages 5-11 and 47-50 be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to
be an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited
procedures do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise Moab City's basic financial statements. The combining and individual nonmajor fund financial
statements (pages 51-52) are presented for purposes of additional analysis and are not a required part of
the basic financial statements.
The combining and individual nonmajor fund financial statements are the responsibility of management
and were derived from and relate directly to the underlying accounting and other records used to prepare
the basic financial statements. Such information has been subjected to the auditing procedures applied in
the audit of the basic financial statements and certain additional procedures, including comparing and
reconciling such information directly to the underlying accounting and other records used to prepare the
basic financial statements or to the basic financial statements themselves, and other additional
procedures in accordance with auditing standards generally accepted in the United States of America. In
our opinion, the combining and individual nonmajor fund financial statements are fairly stated, in all
material respects, in relation to the basic financial statements as a whole.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated November 16,
2016 on our consideration of Moab City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on internal control
over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering Moab City's internal control over financial
reporting and compliance.
61tAlialf/
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Larson & Company, PC
Spanish Fork, Utah
November 16, 2016
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
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4
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
As management of Moab City Corporation (the City), we offer readers of the City's financial
statements this narrative overview and analysis of financial activities of the City for the fiscal year
ended June 30, 2016.
FINANCIAL HIGHLIGHTS
*Total net position for the City as a whole increased by $1,563,297.
*Total unrestricted net position for the City as a whole increased by $557,302.
*Total net position for governmental activities increased by $1,266,472.
*Total net position for business -type activities increased by $296,825.
BASIC FINANCIAL STATEMENTS
This discussion and analysis is intended to serve as an introduction to the basic financial statements of
Moab City Corporation. The basic financial statements comprise three components: (1) government
wide financial statements, (2) fund financial statements, and (3) notes to the financial statements.
Government -wide financial statements. The government -wide financial statements are designed to
provide readers with a broad overview of the City's finances, in a manner similar to a private -sector
business.
The statement of net position presents information on all of the City's assets, deferred outlfows,
liabilities, and deferred inflows, with the difference between them reported as net position. Over time,
increases or decreases in net position may serve as a useful indicator of whether the financial position
of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net position changed during
the fiscal year reported. All changes in net position are 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 of the government -wide financial statements distinguish functions of the City that are
principally supported by taxes and intergovernmental revenues (governmental activities) from other
functions that are intended to recover all or a significant portion of their costs through user fees and
charges (business -type activities). The statement of activities is presented on two pages. The first page
reports the extent to which each function or program is self-supporting through fees and
intergovernmental aid. The second page identifies the general revenues of the City available to cover
any remaining costs of the functions or programs.
5
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
Fund financial statements. A fund is a grouping of related accounts that is used to maintain control
over resources that have been segregated for specific activities or objectives. The City also uses fund
accounting to ensure and demonstrate compliance with finance -related legal requirements. All of the
funds of the City can be divided into two categories: governmental funds and proprietary funds.
Governmental funds. These funds are used to account for the same functions reported as governmental
activities in 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.
Because of the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for government 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 financing
decisions. Both the government fund balance sheet and the government fund statement of the
revenues, expenditures, and changes in fund balances provide reconciliation to facilitate this
comparison between governmental funds and governmental activities.
The City maintains two major governmental funds, the general fund and the capital projects fund.
The City adopts an annual appropriated budget for its general fund. A budgetary comparison schedule
has been provided to demonstrate legal compliance with the adopted budget for the general fund.
The basic governmental fund financial statements can be found later in this report; see Table of
Contents.
Proprietary funds. The City maintains one type of proprietary fund. Enterprise funds are used to report
the same functions presented as business -type activities in the government -wide financial statements.
The City uses two enterprise fund to account for the operations of the water, sewer and storm drain
activities.
Proprietary funds provide the same type of information as the government -wide financial statements,
only in more detail. The enterprise funds are considered major funds of the City.
The proprietary fund financial statements can be found later in this report; see Table of Contents.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements. The notes to
the financial statements are reported later in this report; see Table of Contents.
Other information. In addition to the basic financial statements and accompanying notes, this report
also presents certain required supplementary information concerning the City.
6
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
FINANCIAL ANALYSIS
Moab City Corporation's Net Position
Governmental Business -type
Activities Activities
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
Current and other assets $ 6,684,765 5,482,678 3,932,000 4,383,582 10,616,765 9,866,260
Net capital assets 16,431,427 16,747,875 7,843,764 7,036,938 24,275,191 23,784,813
Deferred outflows 812,352 289,783 79,359 28,307 891,711 318,090
Total assets and
deferred outflows 23,928,544 22,520,336 11,855,123 11,448,827 35,783,667 33,969,163
Current and other liabilities 2,314,567 2,012,675 288,776 189,840 2,603,344 2,202,515
Long-term liabilities 5,109,000 5,377,000 - 5,109,000 5,377,000
Deferred inflows 323,309 215,467 31,583 21,047 354,892 236,514
Total liabilities and
deferred inflows 7,746,877 776057141 320,359 210,887 8,067,236 7,816,029
Net position:
Net investment in
capital assets 11,322,427 11,370,875 7,843,764 7,036,938 19,166,191 18,407,813
Restricted 366,465 118,848 2,413,127 2,413,127 2,779,592 2,531,975
Unrestricted 4,492,776 3,425,472 1,277,873 1,787,874 5,770,649 5,213,347
Total net position $ 16 181 668 14 915 195 11 534 764 11 237 939 27 716 432 26 153 134
As noted earlier, net position may serve over time as a useful indicator of financial position. Total
assets and deferred outflows exceeded total liabilities and deferred inflows at the close of the year by
$27,716,432, an increase of $1,563,298 from the previous year. This change is equivalent to the net
income for the year, in private sector terms.
Total unrestricted net position at the end of the year is $5,770,649, which represents an increase of
$557,302 from the previous year. Unrestricted net position are those resources available to finance
day-to-day operations without constraints established by debt covenants, enabling legislation, or other
legal requirements.
The amount of current and other assets represent the amounts of cash and receivables on hand at the
end of each year. Other liabilities are the amounts of current and other liabilities due, at year end, for
goods and services acquired.
Changes in capital assets are the result of the difference, in the current year, of the cost of acquisition
of capital assets and any depreciation charges on capital assets. Change in long-term debt is the
difference in the amount of debt issued and that which has been paid during the year.
7
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
FINANCIAL ANALYSIS (continued)
Moab City Corporation's Change in Net Position
Governmental Business -type
Activities Activities
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
Program revenues:
Charges for services $ 1,855,004 1,715,090 1,797,751 1,662,543 3,652,755 3,377,632
Operating grants 213,171 210,589 - 213,171 210,589
Capital grants 429,117 477,215 - - 429,117 477,215
General revenues:
Sales tax 1,794,758 1,738,623 - 1,794,758 1,738,623
Other taxes 5,489,963 5,336,833 - - 5,489,963 5,336,833
Other revenues 298,500 149,610 123,564 172,124 422,064 321,733
Total revenues 10,080,514 9,627,960 1,921,315 1,834,666 12,001,829 11,462,626
Expenses:
General government 2,311,388 2,011,390 - - 2,311,388 2,011,390
Public safety 2,436,681 2,202,531 - - 2,436,681 2,202,531
Highways and improvements 2,377,055 2,327,991 - 2,377,055 2,327,991
Parks and recreation 2,065,937 2,373,273 - 2,065,937 2,373,273
Interest on long-term debt 32,981 34,894 - 32,981 34,894
Water, sewer and storm drain - - 1,214,490 1,179,209 1,214,490 1,179,209
Total expenses 9,224,042 8,950,079 1,214,490 1,179,209 10,438,532 10,129,288
Excess (deficiency) before
transfers and contributions 856,472 677,881 706,825 655,457 1,563,297 1,333,338
Transfers (410,000) (410,000) 410,000 410,000
Change in net position $ 1,266,472 1,087,881 296,825 245,457 1,563,297 1,333,338
Total revenues increased by $539,203, while total expenses increased by $309,244. The total net
increase for the year of $1,563,297 is an increase from the previous year of $229,959.
Governmental activities revenues of $10,080,514 is an increase of $452,554 from the previous year.
This is primarily due to an increase in tax revenues compared to the previous year. Governmental
activities expenses of $9,224,042 is an increase of $273,963 from the previous year. Expenses within
all departments increased with the exception of the parks and recreation department.
Business -type activities revenues of $1,921,315 is an increase of $86,648 from the previous year.
Business -type activities expenses of $1,214,490 is an increase of $35,281 from the previous year.
8
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
BALANCES AND TRANSACTIONS OF INDIVIDUAL FUNDS
Some of the more significant changes in fund balances and fund net position and any restrictions on
those amounts is described below:
General Fund
The fund balance of $2,176,166 reflects a decrease of $252,284 from the previous year. Total
revenues, excluding transfers in, increased by $430,956. Tax revenues increased by $209,265.
Revenue from licenses and permits increased by $80,886. Intergovermnetal revenues increased by
$10,443. Revenue from charges for services increased by $85,712. Revenue from fines and forfeitures
decreased by $2,445. All other revenues increased by $47,095. Transfers in from the Water and Sewer
Fund and the Storm Drain Fund were made during the year amounting to $410,000.
Total expenditures, excluding transfers out, increased by $526,840. Expenditure changes from the
previous year, by department, were: general government increased by $267,114; public safety
increased by $212,980; streets and highways increased by $74,189; and parks and recreation increased
by $90,333. Capital outlay expenditures decreased by $117,775. Transfers out were made during the
year to the capital projects fund and recrecreation fund amounting to $2,273,836.
The fund balance restricted for Class C roads is $366,465. The unassigned fund balance amounts to
$1,809,701.
Capital Projects Fund
The fund balance of $4,099,421 reflects an increase of $1,421,326 from the previous year. Total
revenue, excluding transfers, increased by $49,937. This increase is primarily a result of an increase in
donations. Expenses increased during the year by $223,636. A transfer in was made during the year
from the general fund for $2,171,590.
Water and Sewer Fund
Net income amounted to $200,881, which is an increase of $27,963 from the previous year net
income. The amount restricted for construction is $2,413,127. Unrestricted net position amounts to
$65,320.
Storm Drain Fund
The change in net position (net income) was $95,944, an increase of $23,405 from the previous year
net income. Unrestricted net position amounts to $1,212,553.
GENERAL FUND BUDGETARY HIGHLIGHTS
Revenues for the current year, exclusive of transfers and fund balance appropriations, were originally
budgeted in the amount of $8,390,095. Budgeted revenues were amended during the year to
$8,515,095. Actual revenues amounted to $9,473,624.
Expenditures for the current year, excluding transfers, were originally budgeted in the amount of
$8,652,704. Budgeted expenditures were amended during the year to $9,205,484. Actual expenditures
amounted to $7,862,072.
9
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
CAPITAL ASSETS AND DEBT ADMINISTRATION
Moab City Corporation's Capital Assets (net of depreciation)
Governmental Business -type
Activities Activities
Net Capital Assets:
Land and water rights
Buildings
Improvements other
than buildings
Machinery and equipment
Infrastructure
Water system
Sewer system
Work in progress
Totals
Current Previous
Year Year
$ 476,884 476,884
9,890,780 10,038,564
1,906,563 1,820,408
1,693,031 1,556,156
2,464,168 2,436,076
- 419,787
Current Previous
Year Year
Total
Current
Year
Total
Previous
Year
262,935 262,935 739,819 739,819
- - 9,890,780 10,038,564
358,170 345,663
2,770,285 2,135,723
3,364,399 3,052,518
1,087,974 1,240,098
1,906,563 1,820,408
2,051,201 1,901,819
2,464,168 2,436,076
2,770,285 2,135,723
3,364,399 3,052,518
1,087,974 1,659,886
$ 16,431,427 16,747,875 7,843,764 7,036,938 24,275,191 23,784,813
The total amount of capital assets, net of depreciation, of $24,275,191 is an increase of $490,378 from
the previous year.
Governmental activities capital assets, net of depreciation, of $16,431,427 is a decrease of $316,448
from the previous year.
Business -type activities capital assets, net of depreciation, of $7,843,764 is an increase of $806,826
from the previous year.
Additional information regarding capital assets may be found in the notes to financial statements.
Moab City Corporation's Outstanding Debt
Current Previous
Year Year
Governmental activities:
2003 Sales Tax Revenue $ 1,300,000 1,377,000
2009 Sales Tax Revenue 3,809,000 4,000,000
Total outstanding debt $ 5,109,000 5,377,000
Additional information regarding long-term liabilities may be found in the notes to financial
statements.
10
Moab City Corporation
Management's Discussion and Analysis
June 30, 2016
ECONOMIC FACTORS AND NEXT YEAR'S BUDGETS AND RATES
No significant economic changes that would affect the City are expected for the next year. Budgets
have been set on essentially the same factors as the current year being reported.
REQUESTS FOR INFORMATION
This financial report is designed to provide a general overview of the Moab City Corporation's
finances for all those with an interest in the City's finances. Questions concerning any information
provided in this report or requests for additional financial information should be addressed to: City
Recorder, 217 East Center Street, Moab, UT 84532.
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12
BASIC FINANCIAL STATEMENTS
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14
Moab City Corporation
STATEMENT OF NET POSITION
June 30, 2016
Governmental Business -type
Activities Activities Total
ASSETS AND DEFERRED OUTFLOWS
OF RESOURCES:
Assets:
Current assets:
Cash and cash equivalents $ 5,393,058 3,049,273 8,442,331
Accounts receivable, net of allowances 123,712 134,041 257,753
Due from other governments 813,751 813,751
Other current assets 926 926
Total current assets 6,331,447 3,183,314 9,514,761
Non -current assets:
Restricted cash and cash equivalents 350,394 748,400 1,098,794
Capital assets:
Not being depreciated 476,884 1,350,910 1,827,794
Net of accumulated depreciation 15,954,543 6,492,855 22,447,397
Net pension asset 2,924 286 3,210
Total non -current assets 16,784,745 8,592,450 25,377,195
Total assets 23,116,192 11,775,764 34,891,956
Deferred outlfows of resources - pensions
Total assets and deferred outlfows of resources
812,352 79,359 891,711
$ 23,928,544 11,855,123 35,783,667
LIABILITIES AND DEFERRED INFLOWS
OF RESOURCES:
Liabilities:
Current liabilities:
Accounts payable and accrued liabilities 286,698 88,411 375,109
Customer security deposits 1,625 1,625
Accrued interest payable 24,375 - 24,375
Revenue bond due within one year 270,000 270,000
Total current liabilities 581,073 90,036 671,109
Non -current liablities:
Compensated absences 366,582 38,839 405,421
Revenue bonds due after one year 4,839,000 4,839,000
Net pension liability 1,636,913 159,901 1,796,814
Total non -current liablities 6,842,495 198,740 7,041,235
Total liabilties 7,423,567 288,776 7,712,344
Deferred inflows of resources - pensions
Total liabilities and deferred inflow of resources
323,309 31,583 354,892
7,746,877 320,359 8,067,236
NET POSITION:
Net investment in capital assets 11,322,427 7,843,764 19,166,191
Restricted:
Class C roads 366,465 366,465
Construction - 2,413,127 2,413,127
Unrestricted 4,492,776 1,277,873 5,770,649
Total net position 16,181,668 11,534,764 27,716,432
Total liabilities, deferred inflows of resources,
and net position $ 23,928,544 11,855,123 35,783,667
The notes to the financial statements are an integral part of this statement.
15
Moab City Corporation
STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2016
Net
(Expense)
Charges Operating Capital Revenue
for Grants and Grants and (To Next
Expenses Services Contributions Contributions Page)
FUNCTIONS/PROGRAMS:
Primary government:
Governmental activities:
Administration $ 2,311,388 1,381,773
Public safety 2,436,681 20,714
Streets and highways 2,377,055
Parks and recreation 2,065,937 452,517
Interest on long-term debt 32,981 -
Total governmental activities 9 224 042 1 855,004
25,473
187,698
113,662 (815,952)
(2,390,494)
(2,189,358)
315,455 (1,297,964)
(32,981)
213,171 429,117 (6,726,749)
Business -type activities:
Water and sewer utilities 1,214,490 1,656,808 111,060 553,378
Storm drain utility 140,944 140,944
Total business -type activities 1 214 490 1 797 751 111,060 694,321
Total primary government $ 10 438 532 3 652 755 213,171 540,177 (6,032,428)
(The statement of activities continues
on following page)
The notes to the financial statements are an integral part of this statement.
16
Moab City Corporation
STATEMENT OF ACTIVITIES (continued)
For the Year Ended June 30, 2016
CHANGES IN NET POSITION:
Net (expense) revenue
(from previous page)
Governmental Business -type
Activities Activities
Total
$ (6,726,749) 694,321 (6,032,428)
General revenues:
Sales tax 1,794,758 1,794,758
Other taxes 5,489,963 5,489,963
Unrestricted investment earnings 51,826 12,504 64,329
Gain on sale of property 348 - 348
Miscellaneous 246,326 246,326
Transfers in (out) 410,000 (410,000)
Total general revenues and transfers 7,993,222 (397,496) 7,595,725
Change in net position 1,266,472 296,825 1,563,297
Net position - beginning 14,915,195 11,237,939 26,153,134
Net position - ending $ 16,181,667 11,534,764 27,716,431
The notes to the financial statements are an integral part of this statement.
17
Moab City Corporation
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2016
ASSETS
Cash and cash equivalents
Accounts receivable, net of allowances
Other current assets
Restricted cash and cash equivalents
TOTAL ASSETS
LIABILITIES
Accounts payable
Accrued liabilities
TOTAL LIABILITIES
FUND BALANCES:
Restricted for:
Class C roads
Assigned for:
Capital projects
USU Set -aside
Recreation
Youth city council
Unassigned
TOTAL FUND BALANCES
General
Fund
Capital
Projects
Fund
$ 1,088,473 4,175,879
935,765 1,698
926
350,394
Non -Major Total
Governmental Governmental
Funds Funds
128,706 5,393,058
937,463
926
350,394
$ 2,375,559 4,177,577 128,706 6,681,841
$ 127,434 58,844
71,959 19,312
199.393 78.156
366,465
- 3,649,421
- 450,000
1,809,701
9,149 195,427
91,271
9.149 286.698
116,430
3,127
366,465
3,649,421
450,000
116,430
3,127
1,809,701
2,176,166 4,099,421 119,557 6,395,143
TOTAL LIABILITIES AND FUND BALANCES $ 2,375,559 4,177,577
The notes to the financial statements are an integral part of this statement.
18
128,706 6,681,841
Moab City Corporation
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended June 30, 2016
Capital Non -Major Total
General Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES:
Taxes:
Sales $ 1,794,758 1,794,758
Other taxes 5,489,963 - 5,489,963
Licenses and permits 266,170 - 266,170
Intergovernmental revenues 326,833 226,209 89,246 642,288
Charges for services 1,377,527 12,662 114,728 1,504,917
Fines and forfeitures 83,917 83,917
Interest 32,506 18,617 703 51,826
Miscellaneous revenue 101,949 128,885 15,840 246,674
Total revenues 9,473,624 386,374 220,516 10,080,514
EXPENDITURES:
General government 1,996,102 32,018 2,028,119
Public safety 2,410,063 - 2,410,063
Highways and public improvements 2,139,836 15,304 2,155,140
Parks, recreation and public property 1,278,012 95,911 339,874 1,713,796
Capital outlay 38,060 690,980 729,040
Debt service:
Prinicpal 268,000 268,000
Interest 34,425 34,425
Total expenditures
Excess (Deficiency) of Revenues over
(Under) Expenditures
Other Financing Sources and (Uses):
Transfers in
Transfers (out)
7,862,072 1,136,638 339,874 9,338,583
1,611,552 (750,264) (119,357) 741,931
410,000 2,171,590 145,611 2,727,201
(2,273,836) (43,365) (2,317,201)
Total other financing sources and (uses) (1,863,836) 2,171,590 102,246 410,000
Net Change in Fund Balances (252,284) 1,421,326 (17,111) 1,151,931
Fund balances - beginning 2,428,450 2,678,094 136,668 5,243,212
Fund balances - end of year $ 2,176,166 4,099,421 119,557 6,395,143
The notes to the financial statements are an integral part of this statement.
19
Moab City Corporation
RECONCILIATION OF THE BALANCE SHEET OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF NET POSITION
For the Year Ended June 30, 2016
Total Fund Balances for Governmental Funds $ 6,395,143
Total net position reported for governmental activities in the statement
is different because:
Capital assets used in governmental funds are not financial resources and
therefore are not reported in the funds.
Capital assets, at cost 25,891,464
Less accumulated depreciation (9,460,037)
Net capital assets 16,431,427
Net pension assets are not financial resources and, therefore, are
not reported in the funds. 2,924
Deferred outflows of resources, a consumption of net position that
applies to future periods, is not shown in the funds statements. 812,352
Long-term liabilities, for funds other than enterprise funds are recorded in
the government -wide statements but not in the fund statements.
General long-term debt
Interest accrued but not yet paid on long-term debt
Compensated absences
Net pension liabilitiy
Deferred inflows of resources - pensions
(5,109,000)
(24,375)
(366,582)
(1,636,913)
(323,309)
Total Net Position of Governmental Activities $ 16,181,668
The notes to the financial statements are an integral part of this statement.
20
Moab City Corporation
RECONCILIATION OF THE STATEMENT OF REVENUES, EXPENDITURES,
AND CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
TO THE STATEMENT OF ACTIVITIES
For the Year Ended June 30, 2016
Net Change in Fund Balances - Total Governmental Funds $ 1,151,931
Amounts reported for governmental activities in the statement of
activities are different because:
Governmental funds report capital outlays as expenditures. However,
in the statement of activities, assets with a material cost are
capitalized and the cost os allocated over their estimated useful
lives and reported as depreciation expenses.
Capital outlays 729,040
Depreciation expense (1,045,488)
Net (316,448)
The Statement of Activities show pension benefits and pension expenses
from the adoption of GASB 68 that are not shown in the fund statements. 133,062
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net position.
Long-term debt principal repayments 268,000
Accrued interest for long-term debt is not reported as and expenditure for
the current period, while it is recorded in the statement of activities.
Change in accrued interest 1,444
Compensated absences expenses reported in the statement of activities do
not require the use of current financial resources and are not reported as
expenditures in governmental activites.
Change in compensated absences liability 28,484
Change in Net Position of Governmental Activities $ 1,266,472
The notes to the financial statements are an integral part of this statement.
21
Moab City Corporation
STATEMENT OF NET POSITION - PROPRIETARY FUNDS
June 30, 2016
Water & Sewer Storm Drain
Fund Fund
Total
ASSETS AND DEFERRED OUTFLOWS OF RESOURCES:
Assets:
Current assets:
Cash and cash equivalents $ 1,843,646 1,205,627 3,049,273
Accounts receivable, net 119,791 14,250 134,041
Total current assets 1,963,437 1,219,877 3,183,314
Non -current assets:
Resricted cash and cash equivalents 748,400 748,400
Capital assets:
Not being depreciated 1,253,919 96,991 1,350,910
Net of accumulated depreciation 6,492,855 6,492,855
Net pension asset 286 286
Total non -current assets 8,495,459 96,991 8,592,450
Total assets 10,458,896 1,316,868 11,775,764
Deferred outflows of resources - pensions
79,359 79,359
Total assets and deferred outflows of resources $ 10,538,255 1,316,868 11,855,123
LIABILITIES AND DEFERRED INFLOWS
OF RESOURCES:
Liabilities:
Current liabilities:
Accounts payable $ 81,087 7,324 88,411
Customer security deposits 1,625 - 1,625
Total current liabilities 82,712 7,324 90,036
Non -current liablities:
Compensated absences 38,839 - 38,839
Net pension liability 159,901 - 159,901
Total non -current liabilities 198,740 - 198,740
Total liabilities 281,452 7,324 288,776
Deferred inflows of resources - pensions
Total liabilities and deferred inflows of resources
31,583 - 31,583
313.035 7.324 320.359
NET POSITION:
Net investment in capital assets 7,746,774 96,991 7,843,764
Restricted for:
Construction 2,413,127 - 2,413,127
Unrestricted 65,320 1,212,553 1,277,873
Total net position 10,225,221 1,309,543 11,534,764
Total liabilities, deferred inflows of resources,
and net position $ 10,538,255 1,316,868 11,855,123
The notes to the financial statements are an integral part of this statement.
22
Moab City Corporation
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN NET POSITION - PROPRIETARY FUNDS
For the Year Ended June 30, 2016
Water & Sewer Storm Drain
Fund Fund
Total
Operating income:
Charges for sales and service $ 1,506,891 140,944 1,647,834
Connection fees 72,564 - 72,564
Other operating income 77,353 77,353
Total operating revenue 1,656,808 140,944 1,797,751
Operating expenses:
Personnel services 350,240 350,240
Utilities 113,755 113,755
Repair & maintenance 58,195 - 58,195
Other supplies & expenses 378,537 378,537
Insurance expense 1,560 - 1,560
Depreciation expense 312,203 - 312,203
Total operating expense 1,214,490 1,214,490
Net operating income (loss) 442,318 140,944 583,261
Non -operating income (expense):
Impact fees 111,060 - 111,060
Interest income 12,504 - 12,504
Transfers in (out) (365,000) (45,000) (410,000)
Total non -operating income (expense) (241,436) (45,000) (286,436)
Change in net position 200,881 95,944 296,825
Net position - beginning 10,024,340 1,213,600 11,237,939
Net position - ending $ 10,225,221 1,309,543 11,534,764
The notes to the financial statements are an integral part of this statement.
23
Moab City Corporation
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS
For the Year Ended June 30, 2016
Cash flows from operating activities:
Cash received from customers - service
Cash paid to suppliers
Cash paid to employees
Net cash provided (used) in operating activities
Cash flows from noncapital financing activities:
Change in customer deposits
Net interfund activity
Net cash provided (used) in
noncapital financing activities
Cash flows from capital and
related financing activities:
Cash from impact fees
Cash payments for capital assets
Net cash provided (used) in capital
and related financing activities
Cash flows from investing activities:
Cash received from interest earned
Net cash provided (used) in investing activities
Net increase (decrease) in cash
Cash balance, beginning
Cash balance, ending
Cash reported on the statement of net position:
Cash and cash equivalents
Non -current restricted cash
Total cash and cash equivalents
Water & Sewer Storm Drain
Fund Fund Total
$ 1,634,865 140,510 1,775,375
(497,002) 7,324 (489,678)
(352,917) - (352,917)
784,946 147,834 932,780
(1,300) (1,300)
(365,000) (45,000) (410,000)
(366,300) (45,000) (411,300)
111,060 111,060
(1,046,730) (72,300) (1,119,030)
(935,670) (72,300) (1,007,969)
12,504 - 12,504
12,504 12,504
(504,520) 30,535 (473,986)
3,096,566 1,175,092 4,271,659
$ 2,592,046 1,205,627 3,797,673
$ 1,843,646 1,205,627 3,049,273
748,400 - 748,400
$ 2,592,046 1,205,627 3,797,673
The notes to the financial statements are an integral part of this statement.
24
Moab City Corporation
STATEMENT OF CASH FLOWS - PROPRIETARY FUNDS (continued)
For the Year Ended June 30, 2016
Reconciliation of Operating Income to Net
Cash Provided (Used) in Operating Activities:
Net operating income (loss)
Adjustments to reconcile operating
income or (loss) to net cash provided (used)
in operating activities:
Depreciation and amortization
Water & Sewer Storm Drain
Fund Fund Total
$ 442,318 140,944 583,261
312,203 - 312,203
Changes in assets and liabilities:
(Increase) decrease in receivables (21,943) (433) (22,376)
(Increase) decrease in non -current assets (27) - (27)
(Increase) decrease in deferred outflows (51,052) (51,052)
Increase (decrease) in payables 92,912 7,324 100,236
Increase (decrease) in deferred inflows 10,536 - 10,536
Net cash provided (used) in operating activities
$ 784,946 147,834 932,780
The notes to the financial statements are an integral part of this statement.
25
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
1-A. Reporting entity
Moab City Corporation (the City), a municipal corporation located in Grand County, Utah, operates under
a Mayor -Council form of government. The accompanying financial statements present the financial
activities of the City.
1-B. Government -wide and fund financial statements
Government -wide Financial Statements
The government -wide financial statements, consisting of the statement of net position and the statement
of changes in net position report information on all of the non -fiduciary activities of the primary
government and its component units. For the most part, the effect of inter -fund activity has been removed
from these statements. Governmental activities, which normally are supported by taxes and
intergovernmental revenues, are reported separately from business -type activities, which rely to a
significant extent on fees and charges for support.
The statement of net position reports the financial position of the governmental and business -type
activities of the City at year-end.
The statement of activities reports the expenses of a given function offset by program revenues directly
connected with the functional program. A function is an assembly of similar activities and may include
portions of a fund or summarize more than one fund to capture the expenses and program revenues
associated with a distinct functional activity. Direct expenses are those that are clearly identifiable with a
specific function or segment. Indirect expenses are not allocated. All expenses are included in the
applicable function. Program revenues include (1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privilege provided by a given function or segment and (2)
grants and contributions that are restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Fund Financial Statements
Separate financial statements are provided for governmental funds, proprietary funds, and fiduciary funds,
if any, even though the latter are excluded from the government -wide financial statements. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statement.
1-C. Measurement focus, basis of accounting and financial statement presentation
The financial statements of the City are prepared in accordance with generally accepted accounting
principles (GAAP).
26
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
1-C. Measurement focus, basis of accounting and financial statement presentation (continued)
The government -wide statements are reported using the economic resources measurement focus and the
accrual basis of accounting, generally including the reclassification of internal activity (between or within
funds). However, internal eliminations do not include utility services provided to City departments or
payments to the general fund by other funds for providing administrative and billing services for such
funds. Reimbursements are reported as reductions to expenses. Proprietary and any fiduciary fund
financial statements are also reported using this same focus and basis of accounting although internal
activity is not eliminated in these statements. Revenues are recorded when earned and expenses are
recorded when a liability is incurred, regardless of the timing of related cash flows.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. The City considers
revenues to be available if they are collected within 60 days of the end of the current fiscal period.
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Sales taxes, intergovernmental revenues, 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, if any, receivable within the current fiscal period is
considered to be susceptible to accrual as revenue of the current period. All other revenue items are
considered to be measurable and available only when cash is received by the government.
Proprietary funds distinguish operating revenues and expenses from non -operating items. Operating
income and expense reported in proprietary fund financial statements include those revenues and
expenses related to the primary, continuing operations of the fund. Principal operating revenues for
proprietary funds are charges to customers for sales or services. Principal operating expenses are the costs
of providing goods or services, including administrative expenses and depreciation of capital assets. Other
revenues and expenses are classified as non -operating in the financial statements.
Policy regarding use of restricted resources
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as needed. Restricted assets and liabilities payable
from restricted assets current in nature are reported with current assets and current liabilities. Restricted
assets, non -current reports assets restricted for acquisition or construction of non -current assets, or are
restricted for liquidation of long-term debt.
27
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
1-D. Fund types and major funds
Governmental funds
The City reports the following major governmental funds:
The general fund is the government's primary operating fund. It accounts for all financial resources of the
general government, except those required to be accounted for in another fund.
The capital projects fund accounts for financial resources used for the acquisition or construction of the
capital facilities of the City (other than those of the enterprise funds).
The City reports the following as non -major governmental funds:
The recreation fund accounts for the revenues and expenditures for the activities relation to recreation.
The youth city council fund accounts for revenues and expenditures for activities with the youth city
council.
Proprietary funds
The City reports the following major proprietary funds:
The water and sewer fund is used to account for the activities of water and sewer utilities.
The storm drain fund is used to account for the revenues and expenditures of the storm drain utility.
1-E. Assets, Liabilities, and Net Position or Equity
1-E-1. Deposit and Investments
Investments are reported at fair value. Deposits are reported at cost, which approximates fair value.
Investments of the City are accounts at the Utah Public Treasurers Investments Fund. Additional
information is contained in Note 2.
1-E-2. Cash and Cash Equivalents
The City's cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition.
1-E-3. Receivables and Payables
Accounts receivable other than intergovernmental receivables are from customers primarily for utility
services. Intergovernmental receivables are considered collectible. Customer accounts are reported net of
an allowance for uncollectible accounts. The allowance amount is estimated using accounts receivable
past due more than 90 days.
28
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-E-3. Receivables and Payables (continued)
During the course of operations, there may be transactions occur between funds that are representative of
lending/borrowing arrangements outstanding at year-end. These are reported as either due to or due from
other funds.
1-E-4. Restricted Assets
In accordance with certain revenue bond covenants, resources may be required to be set aside for the
repayment of such bonds, and, on occasion, for the repair and maintenance of the assets acquired with the
bond proceeds. These resources are classified as restricted assets on the balance sheet because of their
limited use. Most capital grant agreements mandate that grant proceeds be spent only on capital assets.
Unspent resources of this nature are also classified as restricted. The limited use resources described
above involve a reported restriction of both cash and net position.
Unspent proceeds of bonds issued to finance capital assets are also reported as restricted cash
1-E-5. Inventories and Prepaid items
Inventories in governmental funds are not reported. These consist of immaterial amounts of expendable
supplies for consumption. Such supplies are acquired as needed. Proprietary fund inventories, where
material, are stated at the lower of cost or market, using the first -in, first -out basis.
Prepaid items record payments to vendors that benefit future reporting and are reported on the
consumption basis. Both inventories and prepayments are similarly reported in government -wide and
fund financial statements.
1-E-6. Capital Assets
Capital assets includes property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), and are reported in the applicable governmental or business -type activities
columns in the government -wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost of $5,000 and an estimated useful life in excess of two years. Such
assets are recorded at historical cost or at estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation. Infrastructure is
depreciated.
The cost of normal maintenance and repairs that does not add to the value of an asset or materially extend
the assets' life is 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 constructed.
29
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-E-6. Capital Assets (continued)
Upon retirement or disposition of capital assets, the cost and related accumulated depreciation are
removed from the respective accounts. Depreciation of capital assets is computed using the straight-line
method over their estimated useful lives.
Property, plant, and equipment of the primary government, as well as the component units if any, is
depreciated using the straight line method over the following estimated useful lives:
Assets Years
Building and structures 30-45
Infrastructure 30
Vehicles and equipment 5-15
1-E-7. Long-term Obligations
In the government -wide and proprietary fund financial statements, long-term debt and obligations are
reported as liabilities in the applicable governmental activities, business -type activities, or proprietary
fund statement of net position.
The governmental fund financial statements recognize the proceeds of debt and premiums as other
financing sources of the current period. Issuance costs are reported as expenditures.
1-E-8. Deferred Outflows/Inflows of Resources
In addition to assets, the statement of net position will sometimes include a separate section for deferred
outflows of resources. This separate financial statement element, deferred outflows of resources,
represents a consumption of net position that applies to a future period(s) and so will not be recognized as
an outflow of resources (expense/expenditure) until then. The City does not currently have any deferred
outflows of resources.
In addition to liabilities, the statement of net position will sometimes include a separate section for
deferred inflows of resources. This separate financial statement element, deferred inflows of resources,
represents an acquisition of net position that applies to a future period(s) and so will not be recognized as
an inflow of resources (revenue) until then. The City does not currently have any deferred inflows of
resources.
1-E-9. Pensions
For purposes of measuring the net pension liability, deferred outflows of resources and deferred inflows
of resources related to pensions, and pension expense, information about the fiduciary net position of the
Utah Retirement Systems Pension Plan (URS) and additions to/deductions from URS's fiduciary net
position have been determined on the same basis as they are reported by URS. 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.
30
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
1-E. Assets, Liabilities, and Net Position or Equity (continued)
1-E-10. Fund Equity
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed. When both committed, assigned,
or unassigned resources are available for use, it is the City's policy to use committed resources first,
followed by assigned resources and then unassigned resources as they are needed.
Equity is classified in the government -wide financial statements and in the proprietary fund financial
statements as net assets and is displayed in three components as follows:
Net investment in capital assets represents capital assets, net of accumulated depreciation and
reduced by the outstanding balances of any long-term debt attributable to the acquisition,
construction, or improvement of those assets.
Restricted net position is 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 are all other resources that do not meet the definition of "restricted" or "net
investment in capital assets."
Equity is classified in governmental fund financial statements as fund balance and is further classified as
nonspendable, restricted, committed, assigned or unassigned as follows:
Nonspendable fund balance cannot be spent because it is either (a) not in spendable form, or (b)
legally or contractually required to be maintained intact.
Restricted fund balance is fund balance 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.
Committed fund balance includes amounts that can only be used for specific purposes established
by formal action of the City Council, with is the City's highest level of decision making authority.
Fund balance commitments can only be removed or changed by the same type of action (for example
resolution) of the City Council. This classification also includes contractual obligations to the extent
that existing resources have been specifically committed for use in satisfying those contractual
requirements.
Assigned fund balance is constrained by the government's intent to be used for specific purposes, but
is neither restricted nor committed. The City Recorder is authorized to assign amounts to a specific
purpose in accordance with the City's budget policy.
Unassigned fund balance is a residual classification of the General Fund. This classification
represents fund balance that has not been assigned to other funds and that has not been restricted,
committed, or assigned to a specific purpose within the General Fund.
31
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
1-F. Estimates
The preparation of financial statements, in conformity with generally accepted accounting principles,
requires management to make estimates and assumptions that affect certain reported amounts and
disclosures. Accordingly, actual results could differ from those estimates.
NOTE 2 - STEWARDSHIP, COMPLIANCE AND ACCOUNTABILITY
2-A. Budgetary data
Annual budgets are prepared and adopted by ordinance by total for each department, in accordance with
State law, by the Mayor and City Council on or before June 22 for the following fiscal year beginning
July 1. Estimated revenues and appropriations may be increased or decreased by resolution of the City
Council at any time during the year. A public hearing must be held prior to any proposed increase in a
fund's appropriations. Budgets include activities in the General Fund. The level of the City's budgetary
control (the level at which the City's expenditures cannot legally exceed appropriations) is established at
the department level. Each department head is responsible for operating within the budget for their
department. All annual budgets lapse at fiscal year end.
Utah State law prohibits the appropriation of unreserved General Fund balance to an amount less than
5% of the General Fund revenues. The 5% reserve that cannot be budgeted is used to provide working
capital until tax revenue is received, to meet emergency expenditures, and to cover unanticipated deficits.
Any unassigned General Fund balance greater than 25% of the current year's actual revenues must be
appropriated within the following two years.
Once adopted, the budget may be amended by the City Council without hearing provided the budgeted
expenditures do not exceed budgeted revenues and appropriated fund balance. A public hearing must be
held if the budgeted expenditures will exceed budgeted revenues and any fund balance which is available
for budgeting. With the consent of the Mayor, department heads may reallocate unexpended appropriated
balances from one expenditure account to another within that department during the budget year.
Budgets for the General Fund are prepared on the modified accrual basis of accounting. Encumbrances
are not used.
2-B. Deficit fund net assets
None of the City's funds have deficit balances.
32
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
NOTE 3 - DETAILED NOTES
3-A. Deposits and investments
Cash and investments as of June 30, 2016 consist of the following:
Fair Value
Demand deposits $ 164,771
Savings 967,177
Investments - PTIF 8,409,176
Total cash $ 9,541,125
Cash and investments listed above are classified in the accompanying government -wide statement of net
position as follows:
Cash and cash equivalents (current)
Restricted cash and cash equivalents (non -current)
$ 8,442,331
1,098,794
Total cash and cash equivalents $ 9,541,125
Cash equivalents and investments are carried at fair value in accordance with GASB Statement No. 31.
The Utah Money Management Act (UMMA) establishes specific requirements regarding deposits of
public funds by public treasurers. UMMA requires that city funds be deposited with a qualified
depository which includes any depository institution which has been certified by the Utah State
Commissioner of Financial Institutions as having met the requirements specified in UMMA Section 51,
Chapter 7. UMMA provides the formula for determining the amount of public funds which a qualified
depository may hold in order to minimize risk of loss and also defines capital requirements which an
Institution must maintain to be eligible to accept public funds. UMMA lists the criteria for investments
and specifies the assets which are eligible to be invested in, and for some investments, the amount of time
to maturity.
UMMA enables the State Treasurer to operate the Public Treasurer's Investment Pool (PTIF). PTIF is
managed by the Utah State Treasurer's investment staff and comes under the regulatory authority of the
Utah Money Management Council. This council is comprised of a select group of financial professionals
from units of local and state government and financial institutions doing business in the state. PTIF
operations and portfolio composition is monitored at least semi-annually by the Utah Money Management
Council. PTIF is unrated by any nationally recognized statistical rating organizations. Deposits in PTIF
are not insured or otherwise guaranteed by the State of Utah. Participants share proportionally in any
realized gains or losses on investments which are recorded on an amortized cost basis. The balance
available for withdrawal is based on the accounting records maintained by PTIF. The fair value of the
investment pool is approximately equal to the value of the pool shares. The City maintains monies not
immediately needed for expenditure in PTIF accounts.
33
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
3-A. Deposits and investments (continued)
Deposit and Investment Risk
The City maintains no investment policy containing any specific provisions intended to limit the City's
exposure to interest rate risk, credit risk, and concentration of credit risk other than that imposed by
UMMA. The City's compliance with the provisions of UMMA addresses each of these risks.
Interest rate risk
Interest rate risk is the risk that changes in market interest rates will adversely affect the fair value of an
investment. All deposits and investments of the City are available immediately.
Credit risk
Generally, credit risk is the risk that an issuer of an investment will not fulfill its obligations. Custodial
credit risk for deposits is the risk that, in the event of the failure of a depository financial institution, a
government will not be able to recover its deposits. At June 30, 2016, $500,000 of the City's demand
deposits are covered by FDIC insurance.
Custodial credit risk for investments is the risk that, in the event of the failure of the counterparty (e.g.,
broker -dealer) to a transaction, a government will not be able to recover the value of its investment or
collateral securities that are in the possession of another party. This risk is addressed through the policy of
investing excess monies only in PTIF.
Concentration of credit risk
Concentration of credit risk is the risk of loss attributed to the magnitude of a government's investment in
a single issuer. PTIF falls under the constraints of UMMA in limiting concentrations of investments.
3-B. Receivables
The allowance policy is described in Note 1-E-3. Receivables as of year end for the City's funds are
shown below:
Governmental Business -type
Activities Activities Total
Customers $ 113,577 134,041 247,618
Intergovernmental receivables 813,751 - 813,751
Other receivables 10,135 - 10,135
Total $ 937,463 134,041 1,071,504
34
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
3-D. Capital Assets
Capital asset activity for the governmental activities was as follows:
Beginning Ending
Balance Additions Retirements Balance
Governmental activities:
Capital assets, not being depreciated:
Land and rights $ 476,884
Construction in progress 419,787 42,397 462,184
Total capital assets, not being depreciated
476,884
896,671 42,397 462,184 476.884
Capital assets, beind depreciated:
Buildings 12,116,787 157,402 - 12,274,189
Improvements other than buildings 3,796,221 296,274 - 4,092,495
Machinery and equipment 4,623,887 517,610 - 5,141,497
Infrastructure 3,728,857 177,542 3,906,399
Total capital assets, being depreciated
24,265,753 1,148,827 - 25,414,580
Less accumulated depreciation for:
Buildings 2,078,224 305,185 2,383,409
Improvements other than buildings 1,975,813 210,118 2,185,931
Machinery and equipment 3,067,731 380,735 - 3,448,466
Infrastructure 1,292,781 149,450 1,442,231
Total accumulated depreciation 8,414,549 1,045,488 - 9,460,037
Total capital assets being depreciated, net 15,851,203 103,339 - 15,954,543
Governmental activities capital assets, net $ 16,747,875 145,736 462,184 16,431,427
Depreciation expense was charged to functions/programs of the primary government governmental
activities as follows:
Governmental activities:
General government $ 348,609
Public safety 81,685
Highways and public improvements 241,644
Parks, recreation and public property 373,549
Total $ 1,045,488
35
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
3-D. Capital assets (continued)
Capital asset activity for business -type activities was as follows:
Beginning Ending
Balance Additions Retirements Balance
Business -type activities:
Capital assets, not being depreciated:
Land and water shares $ 262,935 262,935
Construction in progress 1,240,098 448,697 600,821 1,087,974
Total capital assets, not being depreciated
1,503,034 448,697 600,821 1,350,910
Capital assets, being depreciated:
Water system 5,495,990 758,153 6,254,143
Sewer system 6,931,477 432,493 7,363,970
Machinery & equipment 1,290,692 80,507 1,371,199
Total capital assets, being depreciated
13,718,158 1,271,154 - 14,989,312
Less accumulated depreciation for:
Water system 3,360,267 123,591 3,483,858
Sewer system 3,878,959 120,613 3,999,571
Machinery & equipment 945,029 67,999 1,013,028
Total accumulated depreciation 8,184,254 312,203 - 8,496,457
Total capital assets being depreciated, net 5,533,904 958,951 6,492,855
Business -type activities capital assets, net $ 7,036,938 1,407,648 600,821 7,843,765
Depreciation expense was charged to functions/programs of the primary government business -type
activities as follows:
Business -type activities:
Water $ 161,673
Sewer 150,530
Total $ 312,203
36
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
3-E. Long-term debt
Long-term debt activity for the year was as follows:
Due
Original % Within
Principal Rate 6/30/2015 Additions Reductions 6/30/2016 One Year
Governmental activities:
2003 Sales Tax Revenue
Matures 10/1/2029 $ 2,050,000 2.50$ 1,377,000 77,000 1,300,000 79,000
2009 Sales Tax Revenue Bonds
Matures 10/1/2035 4,764,000 - 4,000,000 - 191,000 3,809,000 191,000
Total governmental activity
long-term liabilities
$5,377,000 - 268,000 5,109,000 270,000
Principal Interest Total
2017 $ 270,000 32,500 302,500
2018 272,000 30,525 302,525
2019 274,000 28,500 302,500
2020 276,000 26,425 302,425
2021 278,000 24,300 302,300
2022 - 2026 1,423,000 87,800 1,510,800
2027 - 2031 1,372,000 26,400 1,398,400
2032 - 2035 944,000 944,000
Total $5,109,000 256,450 5,365,450
Other long-term liabilities:
Increase
Beginning (Decrease) Ending
Compensated absences:
Governmental $ 395,066 (28,484) 366,582
Business -type 28,517 10,322 38,839
Total $ 423,583 (18,162) 405,421
37
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
3-F. Interfund receivable, payables and transfers
Interfund transfers:
Transfers In Transfers Out
General fund $ 410,000 2,273,836
Recreation 145,611 43,365
Capital projects 2,171,590 -
Water and sewer fund 365,000
Storm drain fund 45,000
Total $ 2,727,201 2,727,201
Transfers are used to move unrestricted general fund revenues to finance various programs that the
government must account for in other funds in accordance with budgetary authorizations, including
amounts provided as subsidies or matching funds for various grant programs.
NOTE 4 - OTHER INFORMATION
4-A. Risk management
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters. The City participates in the Utah Local Government Trust, a
public agency insurance mutual, which provides coverage for property damage and general liability. The
City is subject to a minimal deductible for claims. There have been no significant reductions in insurance
coverage from coverage in the prior year. Amounts of settlements have not exceeded insurance coverage
in any of the past three fiscal years.
4-B. Subsequent Events
In preparing these financial statements, the City has evaluated events and transactions for potential
recognition or disclosure through November 16, 2016, the date the financial statements were available to
be used.
4-C. Landfill agreement
Moab City entered into an agreement with the Grand County Solid Waste Management Special Service
District No. 1 and Grand County in which the City agreed to guarantee the performance of closure and
post -closure care at the Klondike and Moab Landfills. Should the escrow moneys set aside by the District
not cover all costs associated with the closure and post -closure of the landfill, Moab would be liable for
one half of the uncovered costs. Total closure and post -closure costs are currently estimated to be no
more than $175,400 for the Klondike Landfill and for the Moab Landfill.
38
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
4-D. Rounding Convention
A rounding convention to the nearest whole dollar has been applied throughout this report, therefore the
precision displayed in any monetary amount is plus or minus $1. These financial statements are computer
generated and the rounding convention is applied to each amount displayed in a column, whether detail
item or total. As a result, without the overhead cost of manually balancing each column, the sum of
displayed amounts in a column may not equal the total displayed. The maximum difference between any
displayed number or total and its actual value will not be more than $1.
4-E. Pension Plans
General Information about the Pension Plan
Plan description:
Eligible plan participants are provided with pensions through the Utah Retirement Systems. The Utah
Retirement Systems are comprised of the following Pension Trust Funds:
Public Employees Noncontributory Retirement System (Noncontributory System) is a multiple
employer, cost sharing, public employee retirement system;
Public Safety Retirement System (Public Safety System) is a mixed agent and cost -sharing, multiple -
employer public employee retirement system;
Tier 2 Public Employees Contributory Retirement System (Tier 2 Public Employees System) is a
multiple employer cost sharing public employee retiremeny system;
Tier 2 Public Safety and Firefighter Contributory Retiremeny Syste (Tier 2 Public Safety and
Firefighters System) is a multiple employer, cost sharing, public employee retirement system.
The Tier 2 Public Employees System became effective July 1, 2011. All eligible employees beginning on
or after July 1, 2011, who have no previous service credit with any of the Utah Retirement Systems, are
members of the Tier 2 Retirement System.
The Utah Retirement Systems (Systems) are established and governed by the respective sections of Title 49
of the Utah Code Annotated 1953, as amended. The Systems' defined benefit plans are amended statutorily
by the State Legislature. The Utah State Retirement Office Act in Title 49 provides for the administration
of the Systems under the direction of the Board, whose members are appointed by the Governor. The
Systems are fiduciary funds defined as pension (and other employee benefit) trust funds. URS is a
component unit of the State of Utah. Title 49 of the Utah Code grants the authority to establish and amend
the benefit terms.
URS issues a publicly available financial report that can be obtained by writing Utah Retirement Systems,
560 E. 200 S, Salt Lake City, Utah 84102 or visiting the website: www.urs.org.
39
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
4-E. Pension Plans (continued)
Benefits provided:
URS provides retirement, disability, and death benefits. Retirement benefits are as follows:
System
Years of service
Final required and/or
Average age eligible Benefit percentage
Salary for benefit per year of service Cola **
Noncontributory System
Public Safety System
Highest 3 30 years any age 2.0% per year all Up to 4%
Years 25 years any age* years
20 years age 60*
10 years age 62*
4 vears ate 65
Highest 3 20 years any age 2.5% per year up to Up tp 2.5% or
Years 10 years age 60 20 years; 2.0% per 4% depending
4 years age 65 year over 20 years upon employer
Tier 2 Public
Employees System
Highest 5 35 years any age 1.5% per year all
Years 20 years age 60* years
10 years age 62*
4 years age 65
Up to 2.5%
Tier 2 Public Safety and Firefighter
System
Highest 5 25 years any age 1.5% per year all
Years 20 years age 60* years
10 years age 62*
4 years age 65
Up to 2.5%
* with actuarial reductions
** All past -retirement cost -of -living adjustments are non -compounding and are based on the original benefit except for Judges,
which is a compounding benefit. The cost -of -living adjustments are also limited to the actual Consumer Price Index (CPI)
increase for the year, although unused CPI increases not met may be carried forward to subsequent years.
Contributions:
As a condition of participation in the Systems, employers and/or employees are required to contribute
certain percentages of salary and wages as authorized by statute and specified by the URS Board.
Contributions are actuarially determined as an amount that, when combined with employee
contributions (where applicable) is expected to finance the costs of benefits earned by employees during
the year, with an additional amount to finance any unfunded actuarial accrued liability.
Contribution rates are as follows:
Utah Retirement Systems
Employee Paid by Employer Employer Employer Rate
Paid for Employee Contribution Rate for 401(k) Plan
Contributory System
111 - Local Government Div - Tier 2 N/A N/A 16.67 1.78
Noncontributory System
15 - Local Government Div - Tier 1 N/A N/A 18.47 N/A
Public Safety System
Contributory
122 - Tier 2 DB Hybrid Public Safety N/A N/A 22.50 1.33
Noncontributory
43 - Other Div A with 2.5% COLA N/A N/A 34.04 N/A
Tier 2 DC Only
211 - Local Government N/A N/A 6.69 10.00
222 - Public Safety N/A N/A 11.83 12.00
40
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
4-B. Pension Plans (continued)
Tier 2 rates include a statutory required contribution to finance the unfunded actuarial accrued liability of
the Tier 1 plans.
For the fiscal year ended June 30, 2016, the employer and employee contributions to the Systems were as
follows:
System
Noncontributory System
Public Safety System
Tier 2 Public Employees System
Tier 2 Public Safety and Firefighter
Tier 2 DC Only System
Tier 2 DC Public Safety and Firefighter System
Total Contributions
Employer
Contributions
Employee
Contributions
$ 311,453
131,264
71,331
42,971
2,915
950
N/A
N/A
N/A
$ 560,884
Contributions reported are the URS Board approved required contributions by System. Contributions in
the Tier 2 Systems are used to finance the unfunded liabilities in the Tier 1 Systems.
Pension Assets, Liabilities, Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions
At June 30, 2016, we reported a net pension asset of $3,210 and a net pension liability of $1,
Noncontributory System
Public Safety System
Tier 2 Public Employees System
Tier 2 Public Safety and Firefghter
Total
Proportionate
Share
Net Pension
Asset
796,814.
Net Pension
Liability
0.2179161 %
0.3147178%
0.0396361%
0.2137309%
$
1,233,075
563,739
87
3,123 -
$ 3,210 1,796,814
The net pension asset and liability was measured as of December 31, 2015, and the total pension liability
used to calculate the net pension asset and liability was determined by an actuarial valuation as of January
1, 2015 and rolled -forward using generally accepted actuarial procedures. The proportion of the net
pension asset and liability is equal to the ratio of the employer's actual contributions to the Systems during
the plan year over the total of all employer contributions to the System during the plan year.
For the year ended June 30, 2016, we recognize pension expense of $415,147.
41
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
4-B. Pension Plans (continued)
At June 30, 2016, we reported deferred outflows of resources and deferred inflows of resources relating to
pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Difference between expected and actual experience $ 542 $ 114,978
Changes in assumptions 107,197
Net difference between projected and actual earnings on
pension plan investments 599,916
Changes in proportion and differences between contributions
and proportionate share of contributions 1,709 132,717
Contributions subsequent to the measurement date 289,544 -
Total $ 891,711 $ 354,892
$289,544 was reported as deferred outflows of resources related to pensions results from contributions
made by us prior to our fiscal year end, but subsequent to the measurement date of December 31, 2015.
These contributions will be recognized as a reduction of the net pension liability in the upcoming fiscal
year.
Other amounts reported as deferred outflows of resources and deferred inflows of resources related to
pensions will be recognized in pension expense as follows:
Net Deferred
Outflows (Inflows)
Year Ended December 31, of Resources
2016 $ 37,233
2017 37,233
2018 53,512
2019 120,679
2020 (236)
Thereafter (1,148)
Actuarial assumptions:
The total pension liability in the December 31, 2015, actuarial valuation was determined using the
following actuarial assumptions, applied to all periods included in the measurement:
Inflation 2.75 Percent
Salary increases 3.50 - 10.50 percent, average, including inflation
Investment rate of return 7.50 percent, net of pension plan investment
expense, including inflation
Mortality rates were developed from actual experience and mortality tables, based on gender, occupation
and age, as appropriate, with adjustments for future improvement in mortality based on Scale AA, a model
developed by the Society of Actuaries.
The actuarial assumptions used in the January 1, 2015, valuation were based on the results of an actuarial
experience study for the five year period ending December, 31, 2013.
42
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
4-B. Pension Plans (continued)
The long-term expected rate of return on pension plan investments was determined using a building-block
method 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 weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation.
The target allocation and best estimates of arithmetic real rates of return for each major asset class are
summarized in the following table:
Assets class
Equity securities
Debt securities
Real assets
Private equity
Absolute return
Cash and cash equivalents
Totals
Inflation
Expected Return Arithmetic Basis
Target Asset
Allocation
Real Return
Arithmetic
Basis
Long Term expected
portfolio real
rate of return
40%
20%
13%
9%
18%
0%
7.06%
0.80%
5.10%
11.30%
3.15%
0.00%
2.82%
0.16%
0.66%
1.02%
0.57%
0.00%
100.00%
5.23 %
2.75%
Expected arithmetic nominal return 7.98%
The 7.50% assumed investment rate of return is comprised of an inflation rate of 2.75%, a real return of
4.75% that is net of investment expense.
Discount rate:
The discount rate used to measure the total pension liability was 7.50 percent. The projection of cash flows
used to determine the discount rate assumed that employee contributions will be made at the current
contribution rate and that contributions from all participating employers will be made at contractually
required rates that are actuarially determined and certified by the URS Board. Based on those assumptions,
the pension plan's fiduciary net position was projected to be available to make all projected future benefit
payments of current active and inactive employees. 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 discount rate does not use the Municpal Bond Index Rate. There was no change in
the discount rate from the prior measurement date.
43
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2016
4-B. Pension Plans (continued)
Sensitivity of the proportionate share of the net pension asset and liability to changes in the discount
rate:
The following presents the proportionate share of the net pension liability calculated using the discount rate
of 7.50 percent, as well as what the proportionate share of the net pension liability would be if it were
calculated using a discount rate that is 1-percentage-point lower (6.50 percent) or 1-percentage-point higher
(8.50 percent) than the current rate:
System
Noncontributory System
Public Safety System
Tier 2 Public Employees System
Tier 2 Public Safety and Firefighter
Total
1% Decrease
(6.50%)
Discount Rate
(7.50%)
1 % Increase
(8.50%)
$ 2,605,366
1,193,761
15,867
5,308
1,233,075
563,739
(87)
(3,123)
87,488
50,785
(12,178)
(9,597)
$ 3,820,302
1,793,604
116,498
Pension plan fiduciary net position:
Detailed information about the pension plan's fiduciary net position is available in the separately issued
URS financial report.
Defined Contribution Savings Plan:
The Defined Contribution Savings Plans are administered by the Utah Retirement Systems Board and are
generally supplemental plans to the basic retirement benefits of the Retirement Systems, but may also be
used as a primary retirement plan. These plans are voluntary tax -advantaged retirement savings programs
authorized under sections 401(k), 457(b) and 408 of the Internal Revenue code. Detailed information
regarding plan provisions is available in the separately issued URS financial report. Oakley City
participates in the following Defined Contribution Savings Plans with the Utah Retirement Systems:
- 401(k) Plan
- 457(b) Plan
- Roth IRA Plan
- Traditional IRA Plan
Employee and employer contributions to the Utah Retirement Contribution Savings Plans for fiscal year
ended June 30, 2016, were as follows:
2016 2015 2014
401(k) Plan
Employer Contributions $ 37,659 27,571 25,027
Employee Contributions 48,623 76,137 74,678
457 Plan
Employer Contributions
Employee Contributions 53,660 60,026 40,185
Roth IRA Plan
Employer Contributions N/A N/A N/A
Employee Contributions 6,952 5,830 3,595
Traditional IRA
Employer Contributions N/A N/A N/A
Employee Contributions 650 200 -
44
REQUIRED SUPPLEMENTAL INFORMATION
(Unaudited)
45
This page intentionally left blank.
46
Moab City Corporation
Notes to Required Supplementary Information
June 30, 2016
Budgetary Comparison Schedules
The Budgetary Comparison Schedule presented in this section of the report is for the City's General
Fund.
Budgeting and Budgetary Control
Budgets for the General Fund are legally required and are prepared and adopted on the modified
accrual basis of accounting.
Original budgets represent the revenue estimates and spending authority authorized by the City
Council prior to the beginning of the year. Final budgets represent the original budget amounts plus
any amendments made to the budget during the year by the Council through formal resolution. Final
budgets do not include unexpended balances from the prior year because such balances automatically
lapse to unreserved fund balance at the end of each year.
Current Year Excess of Expenditures over Appropriations
For the year ended June 30, 2016 was within the budget appropriations.
Changes in Assumptions Related to Pensions
Regarding the Schedule of the Proportionate Share of the Net Pension Liability and the Schedule of
Contributions presented in this section, the following assumption changes were adopted from the most
recent actuarial experience study:
There was a decrease in the wage inflation assumption for all employee groups from 3.75% to 3.50%.
Also there was a modification to the rate of salary increases for most groups. The payroll growth
assumption was decrease from 3.5% to 3.25%. There was an improvement in the post retirement
mortality assumption for female educators and minor adjustments to the pre retirement mortality
assumption.
There were additional changes to certain demographic assumptions that generally resulted in: (1) more
members are anticipated to terminate employment prior to retirement, (2) slightly fewer members are
expected to become disabled, and (3) members are expected to retire at a slightly later age.
47
Moab City Corporation
SCHEDULE OF REVENUES, EXPENDITUES AND
CHANGED IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
(Unaudited)
For the Year Ended June 30, 2016
Revenues
Taxes
Licenses and permits
Intergovernmental revenues
Charges for services
Fines and forfeitures
Interest
Miscellaneous revenue
Total revenues
Expenditures
General government
Public safety
Highways and public improvements
Parks and recreation
Total expenditures
Excess (Deficiency) of Revenues
Over (Under) Expenditures
Budgeted
Original
$ 6,421,545
159,350
345,301
1,299,899
65,000
30,500
68,500
8,390,095
2,132,315
2,631,617
2,505,914
1,382,858
Budgeted
Final
6,431,545
220,515
345,301
1,353,734
65,000
30,500
68,500
Variance with
Actual Final Budget
7,284,721
266,170
326,833
1,377,527
83,917
32,506
101,949
8,515,095 9,473,624
2,238,095
2,725,617
2,551,914
1,689,858
8,652,704 9,205,484
(262,609) (690,389)
Other Financing Sources and (Uses)
Transfers in 410,000 410,000
Transfers out (788,616) (2,274,836)
Total Other Financing Sources and (Uses)
Net Change in Fund Balances
Fund Balances - beginning of year
Fund Balances - end of year
410,000
(2,273,836)
(378,616) (1,864,836) (1,863,836)
(641,225) (2,555,225) (252,284)
2,428,450 2,428,450 2,428,450
1,996,102
2,448,123
2,139,836
1,278,012
853,176
45,655
(18,468)
23,793
18,917
2,006
33,449
958,529
241,993
277,494
412,078
411,846
7,862,072 1,343,412
1,611,552 2,301,941
1,000
1,000
2,302,941
$1,787,225 (126,775) 2,176,166 2,302,941
48
Moab City Corporation
SCHEDULE OF THE PROPORTIONATE SHARE OF THE NET PENSION LIABILITY
June 30, 2016
Last 10 Fiscal Years*
Noncontributory Retirement System
Proportion of the net pension liability (asset)
Proportionate share of the net pension liability (asset)
Covered employee payroll
Proportionate share of the net pension liability (asset) as a percentage of
its covered -employee payroll
Plan fiduciary net position as a percentage of the total pension liability
Public Safety System
Proportion of the net pension liability (asset)
Proportionate share of the net pension liability (asset)
Covered employee payroll
Proportionate share of the net pension liability (asset) as a percentage of
its covered -employee payroll
Plan fiduciary net position as a percentage of the total pension liability
Tier 2 Public Employees Retirement System
Proportion of the net pension liability (asset)
Proportionate share of the net pension liability (asset)
Covered employee payroll
Proportionate share of the net pension liability (asset) as a percentage of
Plan fiduciary net position as a percentage of the total pension liability
2015
2014
0.2179161% 0.2429667%
$ 1,233,075 $ 1,055,019
$ 1,878,267 $ 2,145,537
65.65%
87.80%
49.20%
90.20%
0.3147178% 0.3437599%
$ 563,739 $ 432,307
$ 518,613 $ 567,252
108.70%
87.10%
76.20%
90.50%
0.0396361% 0.0260728%
$ (87) $ (790)
$ 256,204 $ 128,012
-3.00% -0.60%
100.20% 103.50%
Tier 2 Public Safety and Firefighters Retirement
Proportion of the net pension liability (asset) 0.2137309% 0.1428958%
Proportionate share of the net pension liability (asset) $ (3,123) $ (2,114)
Covered employee payroll $ 127,224 $ 59,035
Proportionate share of the net pension liability (asset) as a percentage of
its covered -employee payroll
Plan fiduciary net position as a percentage of the total pension liability 110.70% 120.50%
-2.45% -3.60%
* In accordance with paragraph 81.a of GASB 68, employers will need to disclose a 10-year history of their
proportionate share of the Net Pension Liability (Asset) in their RSL The 10-year schedule will need to be built
prospectively. The schedule above is only for the last two years.
49
Firefighter DC Only System
Moab City Corporation
SCHEDULE OF CONTRIBUTIONS
June 30, 2016
Last 10 Fiscal Years*
As of
fiscal
year Actuarial
ended Determined
June 30, Contributions
Contributions in
relation to the
contractually
required
contribution
Contribution
deficiency
(excess)
Covered
employee
payroll
Contributions
as a percentage
of covered
employee
payroll
Noncontributory Retirement 2014
2015
2016
System
$ 373,502
366,950
311,453
$ 373,502 $
366,950
311,453
- $2,218,242
- 2,031,635
1,712,251
16.84%
18.06%
18.19%
Public Safety System 2014
2015
2016
171,445
144,696
131,264
171,445
144,696
131,264
617,222
- 506,159
481,965
27.78%
28.59%
27.24%
Tier 2 Public Employees 2014 14,676
System
2015 24,084
2016 71,331
14,676
24,084
71,331
104,905
161,205
480,471
13.99%
14.94%
14.85%
Tier 2 Public Safety and 2014 9,427
Firefighter System
2015 17,359
2016 42,971
9,427
17,359
42,971
45,213
76,979
190,912
20.85%
22.55%
22.51 %
Tier 2 Public Employees DC 2014
Only System
2015 1,378 1,378 20,512
2016 2,915 2,915 43,531
0.00%
6.72%
6.70%
Tier 2 Public Safety and 2014
2015
2016
3,336
3,700
950
3,336
3,700
950
33,558
31,279
8,030
9.94%
11.83%
11.83%
* Paragraph 81.b of GASB 68 requires employers to disclose a 10-year history of contributions in RSI. The 10-year
schedule will need to be built prospectively. The schedule above is only for the past 3 years.
Contributions as a percentage of covered -payroll may be different than the board certified rate due to rounding and
other administrative issues.
50
Moab City Corporation
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
June 30, 2016
Youth Total
City Non -Major
Recreation Council Governmental
Fund Fund Funds
ASSETS
Cash and cash equivalents $ 125,579 3,127 128,706
TOTAL ASSETS
LIABILITIES
Accounts payable
TOTAL LIABILITIES
$ 125,579 3,127 128,706
$ 9,149 9,149
9.149 9.149
FUND BALANCES:
Assigned for:
Recreation 116,430 116,430
Youth city council 3,127 3,127
TOTAL FUND BALANCES
TOTAL LIABILITIES AND FUND BALANCES
116.430 3.127 119.557
$ 125,579 3,127 128,706
The notes to the financial statements are an integral part of this statement.
51
Moab City Corporation
COMBINING STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
For the Year Ended June 30, 2016
Youth Total
City Non -Major
Recreation Council Governmental
Fund Fund Funds
REVENUES:
Intergovernmental revenues $ 89,246 89,246
Charges for services 114,728 114,728
Interest 676 26 703
Miscellaneous revenue 15,840 15,840
Total revenues
EXPENDITURES:
Parks, recreation and public property
Total expenditures
Excess (Deficiency) of Revenues over
(Under) Expenditures
Other Financing Sources and (Uses):
Transfers in
Transfers (out)
220.490 26 220.516
339,874 339,874
339,874 339,874
(119,384) 26 (119,357)
145,611 145,611
(43,365) (43,365)
Total other financing sources and (uses) 102,246 102,246
Net Change in Fund Balances (17,138) 26 (17,111)
Fund balances - beginning 133,568 3,100 136,668
Fund balances - end of year $ 116,430 3,127 119,557
The notes to the financial statements are an integral part of this statement.
52
d Larson
AN _
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL
REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING
STANDARDS
The Honorable Mayor, and
Members of the City Council
Moab City, Utah
We have audited, in accordance with the auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, each major fund, and the aggregate remaining fund information of
Moab City, Utah (herein referred to as the "City"), as of and for the year ended June 30, 2016, and the
related notes to the financial statements, which collectively comprise the City's basic financial statements
and have issued our report thereon dated November 16, 2016.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City'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 opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness 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 significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
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 and therefore, material weaknesses or significant deficiencies may
exist that were not identified. Given these limitations, during our audit we did not identify any deficiencies
in internal control that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards
Larson & Company
765 North Main, Spanish Fork, Utah 84660
Main: (801) 798-3545 FaX: (801) 798-3678
www.7aPSco.com
53
l !ember of
CPA. NIiRNATMERI101VAL
..'44, Crane Harwllh InlmubonY
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.
4 (11/(4/Yea-tr 1°.'
Larson & Company, PC
Spanish Fork, Utah
November 16, 2016
54
��a L a r s o n
G E R T I F I E B P U B L I C A C C O U N T A N T S
I N D E P E N D E N T A U D I T O R '