HomeMy Public PortalAbout2011-2012 annual final auditMoab City Corporation
Grand County, Utah
ANNUAL FINANCIAL REPORT
For the Year Ended June 30, 2012
Moab City Corporation
TABLE OF CONTENTS
June 30, 2012
INDEPENDENT AUDITORS' REPORT
MANAGEMENT'S DISCUSSION AND ANALYSIS
BASIC FINANCIAL STATEMENTS
Government -wide Financial Statements:
Statement of Net Assets
Statement of Activities
Fund Financial Statements:
Balance Sheet - Governmental Funds
Beginning
on page
1
3
13
15
16
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 Assets 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 Assets - Proprietary Funds 22
Statement of Revenues, Expenses, and Changes
in Fund Net Assets - Proprietary Funds 23
Statement of Cash Flows - Proprietary Funds
Notes to Financial Statements
REQUIRED SUPPLEMENTARY INFORMATION
24
26
41
Schedule of Revenues, Expenditures, and Changes
in Fund Balances - Budget and Actual - General Fund 44
COMPLIANCE REPORTS
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
45
Independent Auditors' Report on Compliance in Accordance
with the State of Utah Legal Compliance Audit Guide 47
Accountant's Report - placeholder only
1
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
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Moab City Corporation
Management's Discussion and Analysis
June 30, 2012
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, 2012.
FINANCIAL HIGHLIGHTS
*Total net assets for the City as a whole increased by $668,401.
*Total unrestricted net assets for the City as a whole decreased by $174,869.
*Total net assets for governmental activities increased by $670,292.
*Total net assets for business -type activities decreased by $1,891.
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 assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating.
The statement of activities presents information showing how the City's net assets changed during the
fiscal year reported. All changes in net assets 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, 2012
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 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 funds to account for the operations of the water, sewer, and storm drain
utilities.
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, 2012
FINANCIAL ANALYSIS
Moab City Corporation's Net Assets
Governmental Business -type
Activities Activities
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
Current and other assets $ 3,719,717 3,510,552 4,212,167 4,268,631 7,931,883 7,779,184
Net capital assets 18,587,258 18,537,090 6,538,572 6,471,201 25,125,830 25,008,291
Total assets 22,306,975 22,047,642 10,750,738 10,739,833 33,057,713 32,787,475
Long-term liabilities
Other liabilities
Total liabilities
6,450,973 6,844,569 - 6,450,973 6,844,569
705,177 722,541 72,274 59,477 777,451 782,018
7,156,150 7,567,109 72,274 59,477 7,228,424 7,626,587
Net assets:
Capital assets, net of debt 12,136,285 11,692,521 6,538,572 6,471,201 18,674,857 18,163,723
Restricted 77,042 94,644 2,413,127 2,413,127 2,490,169 2,507,771
Unrestricted 2,937,498 2,693,367 1,726,766 1,796,027 4,664,263 4,489,394
Total net assets $ 15,150,825 14,480,533 10,678,464 10,680,355 25,829,289 25,160,888
As noted earlier, net assets may serve over time as a useful indicator of financial position. Total assets
exceeded total liabilities at the close of the year by $25,829,289, an increase of $668,401 from the
previous year. This change is equivalent to the net income for the year, in private sector terms.
Total unrestricted net assets at the end of the year are $4,664,263, which represents a decrease of
$174,869 from the previous year. Unrestricted net assets are those 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, 2012
FINANCIAL ANALYSIS (continued)
Moab City Corporation's Change in Net Assets
Governmental Business -type
Activities Activities
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
Program revenues:
Charges for services 1,554,232 1,389,236 1,441,511 1,375,335 2,995,742 2,764,571
Operating grants 205,991 199,989 - 205,991 199,989
Capital grants 720,866 913,503 80,527 77,278 801,393 990,781
General revenues:
Sales tax 1,473,101 1,338,286 - 1,473,101 1,338,286
Other taxes 4,332,050 3,889,991 - 4,332,050 3,889,991
Unrestricted investment earnings 43,435 89,645 7,872 4,379 51,306 94,024
Other revenues 245,377 712,193 - 245,377 712,193
Gain on sale of fixed assets - - 1,123 35 1,123 35
Total revenues 8,575,051 8,532,843 1,531,032 1,457,027 10,106,083 9,989,870
Expenses:
General government 2,014,898 1,913,714 - 2,014,898 1,913,714
Public safety 2,182,652 1,950,842 - 2,182,652 1,950,842
Highways and improvements 2,122,139 2,072,908 - 2,122,139 2,072,908
Parks and recreation 1,936,490 1,284,898 - 1,936,490 1,284,898
Interest on long-term debt 58,580 62,692 - 58,580 62,692
Water and sewer - - 1,122,923 1,068,233 1,122,923 1,068,233
Storm drain 7,273 - 7,273
Total expenses 8,314,759 7,285,054 1,122,923 1,075,507 9,437,682 8,360,561
Excess (deficiency)
before transfers 260,292 1,247,789 408,109 381,521 668,401 1,629,310
Transfers in (out) 410,000 390,000 (410,000) (390,000)
Change in net assets
670,292 1,637,789 (1,891) (8,479) 668,401 1,629,310
For the City as a whole, total revenues increased by $116,212 compared to the previous year, while
total expenses increased by $1,077,121. The total net change of $668,401 is, in private sector terms,
the net income for the year which is $960,909 less than the previous year.
Governmental activities revenues of $8,575,051 is an increase of $42,208 from the previous year.
While grant revenues and miscellaneous revenues decreased, revenue from charges for services and
taxes increased. Governmental activities expenses of $8,314,759 is an increase of $1,029,705 from the
previous year. Spending for all departments increased during the year, with the greatest increase in the
parks and recreation department. The increase in the parks and recreation deparments is primarily do
to an increase in wages and benefits relating to the Moab Recreation & Aquatic Center.
Business -type activities revenue of $1,531,032 is an increase of $74,005 from the previous year. Water
operating income increased by $21,087 and sewer operating income increased by $42,905. Business -
type activities expenses of $1,122,923 is an increase of $47,416 from the previous year.
8
Moab City Corporation
Management's Discussion and Analysis
June 30, 2012
BALANCES AND TRANSACTIONS OF INDIVIDUAL FUNDS
Some of the more significant changes in fund balances and fund net assets and any restrictions on
those amounts is described below:
General Fund
The fund balance of $1,777,740 reflects an increase of $701,940 from the previous year. Total
revenues increased by $789,990. Tax revenues increased by $576,874. Revenue from charges for
services increased by $109,623. All other revenues increased by $103,495.
Total expenditures, excluding transfers out, increased by $889,927. Expenditure changes from the
previous year, by department, were: general government increased by $92,631; public safety increased
by $237,277; streets and highways increased by $32,170; and parks and recreation increased by
$417,765. Capital outlay expenditures increased by $86,841. Expeditures for princpal increased by
$24,560, while expenditures for interest decreased by $1,317.
The amount restricted for Class C roads is $77,042. The unassigned fund balance amounts to
$1,700,697.
Capital Projects Fund
The fund balance of $1,536,655 reflects a decrease of $433,315 from the previous year. Total revenue,
excluding transfers, decreased by $782,208. In the prior year, proceeds from capital leases, revenues
from grants were more than in the current year. However, the greatest change is a result of mortgage
payments being received in the prior year amountsing to $525,100, while in the current year there
were none. Expenses decreased during the year by $4,724,982. The Aquatic Center was finished
during the current year, with the bulk of the expenditures occuring in the prior year.
Water and Sewer Fund
Net income before transfers out was $268,733. Transfers out amounted to $365,000, resulting in a net
loss of $96,267. The amount restricted for construction is $2,413,127. Unrestricted net assets amount
to $795,652.
Storm Drain Fund
The change in net assets (net income) was $94,376. Unrestricted net assets amount to $931,114.
GENERAL FUND BUDGETARY HIGHLIGHTS
Revenues for the current year, exclusive of transfers and fund balance appropriations, were originally
budgeted in the amount of $7,025,433. This amount was amended in the final budget to $7,157,640.
Actual revenues, excluding transfers, amounted to $7,615,799.
Expenditures for the current year, excluding transfers, were originally budgeted in the amount of
$7,357,697. This amount was amended in the final budget to $7,514,904. Actual expenditures
amounted to $7,181,123.
Net transfers for the year were budgeted for net transfers in of $332,264. Actual net transfers in were
made in the amount of $267,264.
9
Moab City Corporation
Management's Discussion and Analysis
June 30, 2012
CAPITAL ASSETS AND DEBT ADMINISTRATION
Moab City Corporation's Capital Assets (net of depreciation)
Governmental Business -type
Activities Activities
Total Total
Current Previous Current Previous Current Previous
Year Year Year Year Year Year
Net Capital Assets:
Land and water rights $ 476,884 476,884 262,935 262,935 739,819 739,819
Buildings 10,947,322 11,208,139 - 10,947,322 11,208,139
Improvements other than
buildings 2,240,323 2,192,461 - 2,240,323 2,192,461
Machinery and equipment 2,103,953 1,975,301 411,901 192,807 2,515,854 2,168,108
Infrastructure 2,620,465 2,337,035 2,620,465 2,337,035
Water system 2,322,056 2,448,487 2,322,056 2,448,487
Sewer system - - 3,413,004 3,566,972 3,413,004 3,566,972
Work in progress 198,311 347,271 128,674 - 326,985 347,271
Totals $ 18,587,258 18,537,090 6,538,572 6,471,201 25,125,830 25,008,291
The total amount of capital assets, net of depreciation, of $25,125,830 is an increase of $117,539 from
the previous year.
Governmental activities capital assets, net of depreciation, of $18,587,258 is an increase of $50,168
from the previous year.
Business -type activities capital assets, net of depreciation, of $6,538,572 is an increase of $67,371
from the previous year.
Increases in capital assets are equal to the amount that new additions to capital assets exceeded
depreciation charged during the year.
Additional information regarding capital assets may be found in the notes to financial statements.
10
Moab City Corporation
Management's Discussion and Analysis
June 30, 2012
CAPITAL ASSETS AND DEBT ADMINISTRATION (continued)
Moab City Corporation's Outstanding Debt - Revenue Bonds
Current Previous
Year Year
Governmental activities:
2011 Equipment Lease $ 42,158 62,127
2009 Equipment Lease 114,996 169,003
2010 Refinance Vehicles 124,819 183,439
2003 Sales Tax Revenue 1,596,000 1,666,000
2009 Sales Tax Revenue 4,573,000 4,764,000
Total governmental 6,450,973 6,844,569
Total outstanding debt $ 6,450,973 6,844,569
Additional information regarding the long-term liabilities may be found in the notes to financial
statements.
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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BASIC FINANCIAL STATEMENTS
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Moab City Corporation
STATEMENT OF NET ASSETS
June 30, 2012
Governmental Business -type
Activities Activities Total
ASSETS:
Current Assets:
Cash and cash equivalents $ 2,716,117 3,344,359 6,060,476
Accounts receivable, net of allowances 709,224 119,408 828,631
Other assets 57,365 - 57,365
Total current assets 3,482,705 3,463,767 6,946,472
Non -current assets:
Restricted cash and cash equivalents 237,012 748,400 985,412
Capital assets:
Not being depreciated 675,195 391,610 1,066,805
Net of accumulated depreciation 17,912,063 6,146,962 24,059,025
Total non -current assets 18,824,270 7,286,972 26,111,242
Total assets $ 22,306,975 10,750,738 33,057,713
LIABILITIES:
Current Liabilities:
Accounts payable $ 315,098 23,382 338,479
Customer security deposits 5,213 5,213
Accrued interest 34,307 34,307
Revenue bonds due within one year 71,000 71,000
Capital leases due within one year 329,113 329,113
Total current liabilities 749,518 28,594 778,112
Non -current liabilities:
Compensated absences 355,772 43,680 399,452
Revenue bonds due after one year 1,525,000 1,525,000
Capital leases due after one year 4,525,861 4,525,861
Total non -current liabilities 6,406,633 43,680 6,450,313
Total liabilities
7,156,150 72,274 7,228,424
NET ASSETS:
Invested in capital assets, net of related debt 12,136,285 6,538,572 18,674,857
Restricted:
Class C roads 77,042 77,042
Debt service
Construction 2,413,127 2,413,127
Unrestricted 2,937,498 1,726,766 4,664,263
Total net assets 15,150,825 10,678,464 25,829,289
Total liabilities and net assets $ 22,306,975 10,750,738 33,057,713
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, 2012
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 $ 2,014,898 1,088,580 55,088 (871,230)
Public safety 2,182,652 18,224 22,735 (2,141,693)
Streets and highways 2,122,139 183,256 101,502 (1,837,382)
Culture and recreation 1,936,490 447,427 564,277 (924,786)
Interest on long-term debt 58,580 - (58,580)
Total governmental activities 8 314 759 1 554 232 205,991 720,866 (5,833,670)
Business -type activities:
Water & Sewer Utilities 1,122,923 1,302,135 80,527 259,739
Storm Drain Utility - 139,376 139,376
Total business -type activities 1,122,923 1,441,511 80,527 399,115
Total primary government
(continued on next page)
$ 9,437,682 2,995,742 205,991 801,393 (5,434,556)
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, 2012
Governmental Business -type
Activities Activities
CHANGES IN NET ASSETS:
Total
Net (expense) revenue
(from previous page) $ (5,833,670) 399,115 (5,434,556)
General revenues:
Sales tax 1,473,101 1,473,101
Other taxes 4,332,050 4,332,050
Unrestricted investment earnings 43,435 7,872 51,306
Gain on sales of capital assets - 1,123 1,123
Miscellaneous 245,377 - 245,377
Transfers in (out) 410,000 (410,000)
Total general revenues and transfers 6,503,962 (401,006) 6,102,957
Change in net assets 670,292 (1,891) 668,401
Net assets - beginning 14,480,533 10,680,355 25,160,888
Net assets - ending $ 15,150,825 10,678,464 25,829,289
The notes to the financial statements are an integral part of this statement.
17
Moab City Corporation
BALANCE SHEET - GOVERNMENTAL FUNDS
June 30, 2012
ASSETS
Cash and cash equivalents
Accounts receivable, net of allowances
Other assets
Restricted cash and cash equivalents
TOTAL ASSETS
LIABILITIES
Accounts payable
TOTAL LIABILITIES
FUND BALANCES:
Restricted for:
Class C roads
Assigned for:
Capital projects
USU Set -aside
Recreation
Youth city council
Unassigned:
General fund
TOTAL FUND BALANCES
TOTAL LIABILITIES AND
FUND BALANCES
General
Fund
$ 1,058,970
698,357
57,365
237,012
Capital
Projects
Fund
1,564,334
10,867
$ 2,051,703 1,575,201
$ 273,963
273.963
77,042
1,700,697
38,546
38.546
1,461,655
75,000
Other Total
Governmental Governmental
Funds Funds
92,813
2,716,117
709,224
57,365
237,012
92,813 3,719,717
2,589 315,098
2.589 315.098
77,042
1,461,655
75,000
87,191 87,191
3,034 3,034
1,700,697
1,777,740 1,536,655 90,224 3,404,619
$ 2,051,703 1,575,201
The notes to the financial statements are an integral part of this statement.
18
92,813 3,719,717
Moab City Corporation
STATEMENT OF REVENUES, EXPENDITURES AND
CHANGES IN FUND BALANCES - GOVERNMENTAL FUNDS
For the Year Ended June 30, 2012
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES:
Taxes:
Sales $ 1,473,101 1,473,101
Other taxes 4,332,050 4,332,050
Licenses and permits 128,736 128,736
Intergovernmental revenues 261,079 601,727 64,052 926,857
Charges for services 1,222,436 26,000 133,418 1,381,854
Fines and forfeitures 43,642 - 43,642
Interest 43,174 261 43,435
Miscellaneous revenue 111,582 43,868 89,927 245,377
Total revenues 7.615.799 671.855 287.397 8.575.051
EXPENDITURES:
Current:
General government 1,672,257 1,672,257
Public safety 2,116,170 2,116,170
Highways and public improvements 1,906,836 1,906,836
Parks, recreation and public property 1,100,782 25,961 444,089 1,570,832
Capital outlay 235,230 780,060 1,015,290
Debt service:
Principal 132,595 261,000 393,595
Interest 17,253 41,650 58,903
Total expenditures 7,181,123 1,108,671 444,089 8,733,883
Excess (Deficiency) of Revenues over
(Under) Expenditures 434,676 (436,815) (156,693) (158,832)
Other Financing Sources and (Uses):
Transfers in 410,000 3,500 139,236 552,736
Transfers (out) (142,736) - - (142,736)
Total other financing sources and (uses) 267,264 3,500 139,236 410,000
Net Change in Fund Balances 701,940 (433,315) (17,457) 251,168
Fund balances - beginning of year 1,075,799 1,969,970 107,681 3,153,451
Fund balances - end of year $ 1,777,740 1,536,655 90,224 3,404,619
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 ASSETS
June 30, 2012
Total Fund Balances for Governmental Funds $ 3,404,619
Total net assets 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 23,922,811
Less accumulated depreciation (5,335,552)
Net capital assets 18,587,258
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
(6,450,973)
(34,307)
(355,772)
Total Net Assets of Governmental Activities $ 15,150,825
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, 2012
Net Change in Fund Balances - Total Governmental Funds $ 251,168
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 is allocated over their estimated useful
lives and reported as depreciation expenses.
Capital outlays 1,015,290
Depreciation expense (965,122)
Net 50.168
Repayment of debt principal is an expenditure in the governmental funds, but
the repayment reduces long-term liabilities in the statement of net assets.
Long-term debt principal repayments
Accrued interest for long-term debt is not reported as expenditure for
the current period, while it is recorded in the statement of activities.
Change in accrued interest
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 funds.
Change in compensated absence liability
393,595
323
(24,963)
Change in Net Assets of Governmental Activities $ 670,292
The notes to the financial statements are an integral part of this statement.
21
Moab City Corporation
STATEMENT OF NET ASSETS - PROPRIETARY FUNDS
June 30, 2012
Water & Sewer Storm Drain
Fund Fund
Total
ASSETS:
Current assets:
Cash and cash equivalents $ 2,427,600 916,759 3,344,359
Accounts receivable, net 105,053 14,354 119,408
Total current assets 2,532,653 931,114 3,463,767
Non -current assets:
Restricted cash and cash equivalents 748,400 - 748,400
Capital assets:
Not being depreciated 370,235 21,375 391,610
Net of accumulated depreciation 6,146,962 - 6,146,962
Total non -current assets 7,265,597 21,375 7,286,972
Total assets
LIABILITIES:
Current liabilities:
Accounts payable
Customer security deposits
Total current liabilities
Non -current liabilities:
Compensated absences
Total non -current liabilities
Total liabilities
$ 9,798,250 952,489 10,750,738
$ 23,382 23,382
5,213 5,213
28,594 28,594
43,680 43,680
43,680 43,680
72,274 72,274
NET ASSETS:
Invested in capital assets,
net of related debt 6,517,197 21,375 6,538,572
Restricted for:
Construction 2,413,127 - 2,413,127
Unrestricted 795,652 931,114 1,726,766
Total net assets 9,725,976 952,489 10.678.464
Total liabilities and net assets $ 9,798,250 952,489 10,750,738
The notes to the financial statements are an integral part of this statement.
22
Moab City Corporation
STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS - PROPRIETARY FUNDS
June 30, 2012
Water & Sewer Storm Drain
Fund Fund
Total
Operating income:
Charges for sales and service $ 1,204,087 139,376 1,343,463
Connection fees 20,192 - 20,192
Other operating income 77,856 - 77,856
Total operating revenue 1,302,135 139,376 1,441,511
Operating expenses:
Personal services 274,936 274,936
Utilities 85,175 85,175
Repair & maintenance 43,447 43,447
Other supplies & expenses 340,665 340,665
Insurance expense 1,560 1,560
Depreciation expense 377,140 377,140
Total operating expense 1,122,923 1,122,923
Net operating income (loss) 179,212 139,376 318,588
Non -operating income (expense):
Impact fees 80,527 - 80,527
Interest income 7,872 7,872
Total non -operating income (expense) 89,521 89,521
Income (loss) before transfers
and capital contributions 268,733 139,376 408,109
Transfers (out) 365,000 45,000 410,000
Change in net assets (96,267) 94,376 (1,891)
Net assets, beginning 9,822,243 858,113 10,680,355
Net assets, ending $ 9,725,976 952,489 10,678,464
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, 2012
Water & Sewer Storm Drain
Fund Fund
Total
Cash flows from operating activities:
Cash received from customers - service $ 1,286,408 139,735 1,426,143
Cash paid to suppliers (461,473) (461,473)
Cash paid to employees (270,876) (270,876)
Net cash provided (used) in operating activities 554,059 139,735 693,795
Cash flows from noncapital financing activities:
Change in customer deposits (638) - (638)
Net interfund activity (365,000) (45,000) (410,000)
Net cash provided (used) in
noncapital financing activities (365,638) (45,000) (410,638)
Cash flows from capital and
related financing activities:
Cash received from impact fees 80,527 - 80,527
Cash payments for capital assets (422,013) (21,375) (443,388)
Net cash provided (used) in capital
and related financing activities (341,486) (217375) (3627861)
Cash flows from investing activities:
Cash received from interest earned 7,872 7,872
Net cash provided (used) in investing activities 7,872 7,872
Net increase (decrease) in cash (145,192) 73,360 (71,832)
Cash balance, beginning 3,321,192 843,399 4,164,591
Cash balance, ending $ 3,176,000 916,759 4,092,759
Cash reported on the balance sheet:
Cash and cash equivalents $ 2,427,600 916,759 3,344,359
Non -current restricted cash 748,400 - 748,400
Total cash and cash equivalents $ 3,176,000 916,759 4,092,759
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, 2012
Reconciliation of Operating Income to Net
Cash Provided (Used) In Operating Activities:
Net operating income (expense)
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
$ 179,212 139,376 318,588
377,140 377,140
Changes in assets and liabilities:
(Increase) decrease in receivables (15,727) 359 (15,367)
Increase (decrease) in payables 13,434 13,434
Net cash provided (used) in operating activities
$ 554,059 139,735 693,795
The notes to the financial statements are an integral part of this statement.
25
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
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 Council -Manager form of government. The accompanying financial statements present the City and its
component units, entities for which the City is considered to be financially accountable.
1-B. Government -wide and fund financial statements
Government -wide Financial Statements
The government -wide financial statements, consisting of the statement of net assets and the statement of
changes in net assets 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 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.
26
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
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).
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. Property tax revenues
are recognized in the year for which they are levied while grants are recognized when the grantor
eligibility requirements are met.
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.
Property taxes, 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.
27
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
1-C. Measurement focus, basis of accounting, and financial statement presentation (continued)
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.
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 City reports the following non -major proprietary funds:
The storm drain fund is used to account for the revenues and expenditures of the storm drain utility.
1-E. Assets, Liabilities, and Net Assets 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.
28
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
1-E. Assets, Liabilities, and Net Assets or Equity (continued)
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 property taxes and intergovernmental receivables are from customers
primarily for utility services. Property tax and 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.
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.
Property taxes are assessed and collected for the City by Sanpete County and remitted to the City shortly
after collection. Property taxes become a lien on January 1 and are levied on the first Monday in August.
Taxes are due and payable on November 1, and are delinquent after November 30. All dates are in the
year of levy.
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 assets.
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.
29
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
1-E. Assets, Liabilities, and Net Assets or Equity (continued)
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 or more 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.
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
Buildings and improvements 30-45
Machinery and equipment 10-15
Vehicles 5-10
Infrastructure 30
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 assets. Bond issuance costs, bond discounts or premiums, and the difference
between the reacquisition price and the net carrying value of refunded debt are deferred and amortized
over the terms of the respective bonds using the effective interest method. Bonds payable are reported net
of the applicable bond premium or discount. Significant or material bond issuance costs are reported as
deferred charges.
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.
30
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
1-E. Assets, Liabilities, and Net Assets or Equity (continued)
1-E-8. Fund Equity
Government -wide Financial Statements
Equity is classified in the government -wide financial statements as net assets and is displayed in three
components:
Invested in capital assets, net of related debt - Capital assets including restricted capital assets, net
of accumulated depreciation and reduced by the outstanding balances of any bonds, mortgages, notes,
or other borrowings that are attributable to the acquisition, construction, or improvement of those
assets.
Restricted net assets - Net assets 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 assets - All other net assets that do not meet the definition of "restricted" or
"invested in capital assets, net of related debt."
Fund Financial Statements
In the fund financial statements governmental fund equity is classified as fund balance. Fund balance is
further classified as Nonspendable, Restricted, Committed, Assigned or Unassigned. Descriptions of each
follow:
Nonspendable fund balance - This classification includes amounts that cannot be spent because they
are either a) not in spendable form or b) legally or contractually required to be maintained intact.
Fund balance amounts related to inventories, prepaid expenditures, and endowments are classified as
nonspendable.
Restricted fund balance - This classification includes net fund resources that are subject to external
constraints that have been placed on the use of the resources either a) imposed by creditors (such as
through a debt covenant), grantors, contributors, or laws or regulations of other governments or b)
imposed by law through constitutional provisions or enabling legislation. The City's remaining
balance of Class C Road cash is restricted.
Committed fund balance - This classification includes amounts that can only be used for specific
purposes established by formal action of the City Council, which 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. The City has not committed any fund balance amounts.
31
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
1-E. Assets, Liabilities, and Net Assets or Equity (continued)
1-E-8. Fund Equity (continued)
Assigned fund balance - This classification includes amounts that the City intends to be used for a
specific purpose but are neither restricted nor committed. These are established by the City Council.
This category includes the remaining positive fund balances for governmental funds other than the
general fund.
Unassigned fund balance - 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 specific purposes within the General Fund.
Proprietary fund equity is classified the same as in the government -wide statements.
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 depat tment head is responsible for operating within the budget for their
depat tment. 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
unreserved General Fund balance greater than 18% of the next year's budgeted 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
As of June 30, 2012, none of the City's funds have deficit fund balances.
32
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
NOTE 3 - DETAILED NOTES
3-A. Deposits and investments
Cash and investments as of June 30, 2012 consist of the following:
Fair Value
Cash on hand $ 650
Demand deposits - checking 1,740,463
Savings 2,409,089
Deposits - PTIF 2,895,685
Total cash $ 7,045,887
Cash and investments listed above are classified in the accompanying government -wide statement of net
assets as follows:
Cash and cash equivalents (current)
Restricted cash and cash equivalents (non -current)
$ 6,060,476
985,412
Total cash and cash equivalents $ 7,045,887
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, 2012
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, 2012, $500,000 of the City's demand and
bank trust 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 parry. 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 $ 102,679 131,319 233,997
Intergovernmental 595,901 595,901
Other receivables 10,644 - 10,644
Total receivables $ 709,224 131,319 840,542
Allowance for uncollectibles (11,911) (11,911)
Net receivables $ 709,224
34
119,408 828,631
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
3-C. 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 $ 476,884 476,884
Construction in progress 347,271 140,650 289,610 198,311
Total capital assets, not being depreciated
824,155 140.650 289,640 675.195
Capital assets, being depreciated:
Buildings 12,075,693 41,095 - 12,116,787
Improvements other than buildings 3,284,967 263,558 3,630 3,544,896
Machinery and equipment 3,656,754 451,299 4,108,053
Infrastructure 3,069,583 408,297 3,477,880
Total capital assets, being depreciated
22,086,997 1,164,249 3,630 23,247,616
Less accumulated depreciation for:
Buildings 867,554 301,911 - 1,169,465
Improvements other than buildings 1,092,506 215,697 3,630 1,304,573
Machinery and equipment 1,681,453 322,647 2,004,100
Infrastructure 732,548 124,866 - 857,415
Total accumulated depreciation 4,374,061 965,122 3,630 5,335,553
Total capital assets being depreciated, net 17,712,936 199,128 - 17,912,063
Governmental activities capital assets, net $ 18,537,090 339,778 289,610 18,587,258
Depreciation expense was charged to functions/programs of the primary government governmental
activities as follows:
Governmental activities:
General government $ 317,678
Public safety 66,483
Highways and public improvements 215,303
Parks, recreation and public property 365,658
Total $ 965,122
35
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
3-C. 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 128,674 128,674
Total capital assets, not being depreciated
262.935 128.674 391.610
Capital assets, being depreciated:
Water system 5,261,752 37,137 5,298,889
Sewer system 6,931,477 - 6,931,477
Machinery & equipment 883,465 278,699 1,162,164
Total capital assets, being depreciated 13,076,693
315,836 - 13,392,529
Less accumulated depreciation for:
Water system 2,813,265 163,568 2,976,832
Sewer system 3,364,505 153,968 3,518,472
Machinery & equipment 690,658 59,605 750,263
Total accumulated depreciation 6,868,427 377,140 - 7,245,567
Total capital assets being depreciated, net 6,208,266 (61,304) - 6,146,962
Business -type activities capital assets, net $ 6,471,201 67,371 - 6,538,572
Depreciation expense was charged to functions/programs of the primary government business -type
activities as follows:
Business -type activities:
Water $ 196,504
Sewer 180,636
Total $ 377,140
36
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
3-D. Long-term debt
Due
Original % Within
Principal Rate 6/30/2011 Additions Reductions 6/30/2012 One Year
Governmental activities:
2011 Equipment Lease
Matures 1/25/2014 $ 62,127 3.66 $ 62,127 19,969 42,158 20,700
2009 Equipment lease
Matures 3/24/2014 270,500 4.25 169,003 54,006 114,996 56,302
2010 Refinance Vehicles
Matures 6/24/2014 301,880 4.25 183,439 58,620 124,819 61,111
2003 Sales Tax Revenue
Matures 10/1/2029 2,050,000 2.50 1,666,000 - 70,000 1,596,000 71,000
2009 Sales Tax Revenue Bonds
Matures 10/1/2035 4,764,000 - 4,764,000 - 191,000 4,573,000 191,000
Total governmental activity
long-term liabilities
$6,844,569 393,595 6,450,973 400,113
Debt service requirements to maturity for governmental activities are as follows:
Principal Interest Total
2013 $ 400,113 51,635 451,748
2014 407,861 44,112 451,973
2015 266,000 36,300 302,300
2016 268,000 34,425 302,425
2017 270,000 32,500 302,500
2018 - 2022 1,380,000 131,875 1,511,875
2023 - 2027 1,434,000 76,100 1,510,100
2028 - 2032 1,272,000 15,975 1,287,975
2033 - 2035 753,000 753,000
Other long-term liabilities:
Total $6,450,973 422,923 6,873,896
Increase
Beginning (Decrease) Ending
Compensate absences:
Governmental $ 330,809 24,963 355,772
Business -type 39,620 4,060 43,680
Total
$ 370,429 29,023 399,452
37
Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
3-E. Interfund receivables, payables, and transfers
Interfund transfers:
Transfers Out:
General
Water and
Sewer Storm Drain Total
Transfers In:
General fund $ - 365,000 45,000 410,000
Recreation 139,236 139,236
Millcreek projects 3,500 - 3,500
Total
$ 142,736 365,000 45,000 552,736
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. Employee pension and other benefit plans
Plan Description:
The City contributes to the Local Governmental Contributory Retirement System (Contributory System),
Noncontributory Retirement System (Noncontributory System), Contributory Public Safety Retirement
System (Contributory Public Safety System), and Noncontributory Public Safety Retirement System
(Noncontributory Public Safety System) for employers with (without) Social Security coverage, all of
which are cost -sharing multiple -employer defined benefit pension plans administered by the Utah
Retirement Systems (Systems). The Systems provide retirement benefits, annual cost of living
adjustments, death benefits and refunds to plan members and beneficiaries in accordance with retirement
statutes established and amended by the State Legislature.
The Systems are established and governed by the respective sections of Chapter 49 of the Utah Code
Annotated 1953 (Chapter 49) as amended, which also establishes the Utah State Retirement Office
(Office) for the administration of the Utah Retirement Systems and Plans. Chapter 49 places the Systems,
the Office and related plans and programs under the direction of the Utah State Retirement Board
(Board) whose members are appointed by the Governor. The Systems issue a publicly available financial
report that includes financial statements and required supplementary information for the Systems and
Plans. A copy of the report may be obtained by writing to the Utah Retirement Systems, 540 East 200
South, Salt Lake City, UT 84102 or by calling 1-800-365-8772.
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Moab City Corporation
NOTES TO FINANCIAL STATEMENTS
June 30, 2012
4-B. Employee pension and other benefit plans (continued)
Funding Policy:
The City is required to contribute a percent of covered salary to the respective systems: 10.33% to the
Contributory System, 13.77% to the Noncontributory System, 16.27% to the Public Safety Contrubitory
System, and 27.07% to the Public Safety Noncontributory System. The contribution rates are the
actuarially determined rates and are approved by the Board as authorized by Chapter 49.
The City's contributions to the various systems for the years ending June 30, 2012, 2011 and 2010
respectively, were: for the Contributory System, $700, $0, and $0; for the Noncontributory System,
$281,016, $251,908 and $211,007; for the Public Safety Contributory System, $5,273, $0, and $0; and
for the Public Safety Noncontributory System, $139,246, $125,207, and $119,256, respectively. The
contributions were equal to the required contributions for each year.
IRC Code Section 401K Plan:
The City participates in a 401k plan offered through the Utah State Retirement Systems. The City's
contributions for the years ending June 30, 2012, 2011 and 2010 were $16,681, $15,677, and $12,859,
respectively.
4-C. Landfill agreement
Moab City entered into an agreement with the Grand County Sold 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 $164,126 for the Klondike Landfill and for the Moab Landfill.
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REQUIRED SUPPLEMENTAL INFORMATION
(Unaudited)
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Moab City Corporation
Notes to Required Supplementary Information
June 30, 2012
Budgetary Comparison Schedules
The Budgetary Comparison Schedules presented in this section of the report are 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, 2012, spending for all departments spending was within the appropriated
budget.
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Moab City Corporation
SCHEDULE OF REVENUES, EXPENDITUES AND
CHANGED IN FUND BALANCES - BUDGET AND ACTUAL - GENERAL FUND
(Unaudited)
For the Year Ended June 30, 2012
Budgeted Budgeted Variance with
Original Final Actual Final Budget
Revenues
Taxes $ 5,361,983 5,362,735 5,805,150 442,415
Licenses and permits 109,000 109,000 128,736 19,736
Intergovernmental revenues 253,000 277,000 261,079 (15,921)
Charges for services 1,160,050 1,214,450 1,222,436 7,986
Fines and forfeitures 48,400 48,400 43,642 (4,758)
Interest 37,000 37,000 43,174 6,174
Miscellaneous revenue 41,000 94,055 111,582 17,527
Total revenues 7,010,433 7,142,640 7,615,799 473,159
Expenditures
General government 1,809,363 1,788,438 1,675,790 112,648
Public safety 2,209,325 2,276,657 2,189,570 87,087
Highways and public improvements 2,110,713 2,146,246 2,065,133 81,113
Parks and recreation 1,078,447 1,153,714 1,100,782 52,932
Debt Service:
Principal 132,596 132,596 132,595 1
Interest 17,253 17,253 17,253
Total expenditures 7,357,697 7,514,904 7,181,123 333,781
Excess (Deficiency) of Revenues
Over (Under) Expenditures $ (347,264) (372,264) 434,676 806,940
Other Financing Sources and (Uses)
Proceeds from sale of fixed assets 15,000 15,000 - (15,000)
Transfers in 475,000 475,000 410,000 (65,000)
Transfers (out) (142,736) (142,736) (142,736)
Total Other Financing Sources and (Uses) 347,264 347,264 267,264 (80,000)
Net Change in Fund Balances (25,000) 701,940 726,940
Fund Balances - beginning of year 1,075,779 1,075,799 1,075,799
Fund Balances - end of year $ 1,075,779 1,050,799 1,777,740 726,940
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