HomeMy Public PortalAbout2005-2006 Audit Final_Financial_StatementsCITY OF MOAB, UTAH
INDEPENDENT AUDITORS' REPORT
BASIC FINANCIAL STATEMENTS
YEAR ENDED JUNE 30, 2006
CITY OF MOAB, UTAH
TABLE OF CONTENTS
YEAR ENDED JUNE 30, 2006
Pages
INDEPENDENT AUDITORS' REPORT 1-2
MANAGEMENT'S DISCUSSION AND ANALYIS MDA-1 thru MDA-6
BASIC FINANCIAL STATEMENTS:
Government -wide Financial Statements:
Statement of Net Assets 3
Statement of Activities 4
Fund Financial Statements:
Balance Sheet — Governmental Funds 5
Reconciliation of Total Governmental Fund Balances to
Net Assets of Governmental Activities 6
Statement of Revenues, Expenditures, and Changes in
Fund Balance — Governmental Funds 7
Reconciliation of the Statement of Revenues, Expenditures, and Changes in
Fund Balances of Governmental Funds to the Statement of Activities 8
Statement of Revenues, Expenditures, and Changes in
Fund Balances — Budget and Actual — General Fund 9-10
Statement of Net Assets — Proprietary Funds 11
Statement of Revenues, Expenses, and Changes in
Fund Net Assets — Proprietary Funds 12
Statement of Cash Flows — Proprietary Funds 13
Notes to the Financial Statements 14-35
SUPPLEMENTARY INFORMATION:
Combining and Individual Fund Statements and Schedules:
Combining Balance Sheet — Non -major Governmental Funds 36
Combining Statement of Revenues, Expenditures and Changes in
Fund Balances — Non -major Governmental Funds 37
Impact Fee Schedule 38
A
LARSON (\,7 COMPANY
CERTIFIED PUBLIC ACCOUNTANTS
INDEPENDENT AUDITORS' REPORT
September 1, 2006
Honorable Mayor
Members of the City Council
City of Moab, Utah
Mayor and Council Members:
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 the
City of Moab, as of and for the year ended June 30, 2006, which collectively comprise the City of
Moab's basic financial statements as listed in the table of contents. These financial statements are
the responsibility of the City of Moab's management. Our responsibility is to express opinions on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States. Those standards
require that we plan and perform the audit to obtain reasonable assurance about whether the
financial statements are free of material misstatement. An audit includes examining, on a test
basis, evidence supporting the amounts and disclosures in the financial statements. An audit also
includes assessing the accounting principles used and significant estimates made by management,
as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our 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 the City of Moab, as of June 30,
2006, and the respective changes in financial position and cash flows, where applicable, thereof
for the year then ended in conformity with accounting principles generally accepted in the United
States of America.
SANDY, OFFICE
9065 SOUTH 1300 EAST
SANDY, UTAH 84094
(801) 313.1900
FAX (801) 313-1912
SPANISH FORK OFFICE
765 NORTH MAIN
SPANISH FORK, UTAH 84660
(801) 798-3545
FAX (801) 798-3678
MOAB OFFICE
121 EAST 100 SOUTH SUITE I04
MOAB, UTAH 84532
(435) 259.9100
FAX (801) 259-9100
MEMBER OF THE INTERNATIONAL ACCOUNTING GROUP (TIAG) + WWW.LARSCO.COM
The Management's Discussion and Analysis on pages MDA-1 through MDA-6 is not a required part
of the basic financial statements but is supplementary information required by accounting principles
generally accepted in the United States of America. Additionally, the State of Utah requires the
information in the Impact Fee Schedule on page 38, but it is not a required part of the basic financial
statements. We have applied certain limited procedures, which consisted principally of inquiries of
management regarding the methods of measurement and presentation of the required supplementary
information. However, we did not audit the information and express no opinion on it.
In accordance with Government Auditing Standards, we have also issued a report dated September 1,
2006, on our consideration of the City of Moab's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, and grants. That report
is an integral part of an audit performed in accordance with Government Auditing Standards and
should be read in conjunction with this report in considering the results of our audit.
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Moab's basic financial statements. The combining non -major fund
financial statements are presented for purposes of additional analysis and are not a required part of the
basic financial statements. The combining non -major fund financial statements have been subjected
to the auditing procedures applied in the audit of the basic financial statements and, in our opinion,
are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
44cp,v,. It- C,,t,1,7
Larson & Company
Certified Public Accountants
2
MANAGEMENT'S DISCUSSION AND ANALYSIS
As management of the City of Moab, we offer readers of the City of Moab financial
statements this narrative overview and analysis of the financial activities of the City for
the fiscal year ended June 30, 2006. It is designed to provide an overview of the City's
financial activity. It is also intended to assist the reader in focusing on significant
financial issues including identifying changes in the City's financial position (its ability
to address the next and subsequent years' challenges), identifying any material deviations
from the approved budget, and identifying individual fund issues or concerns. We
encourage readers to consider the information presented here in conjunction with the
Transmittal Letter and the City's financial statements.
FINANCIAL HIGHLIGHTS
• The total net assets of City of Moab increased by $2,191,049 to $18,790,743.
The governmental net assets increased by $1,824,636 and the business -type
net assets increased by $366,413.
• The total net assets of $18,790,743 are made up of $13,991,710 in capital
assets net of related debt and $4,799,033 in other net assets.
• The General Fund (the primary operating fund) had a decrease in its fund
balance of $109,975, due to an increase in the transfer to the Capital Projects
Fund.
REPORTING THE CITY AS A WHOLE
The discussion and analysis is intended to serve as an introduction to the City of Moab's
basic financial statements. The City of Moab's basic financial statements comprise three
components: 1) government -wide financial statements, 2) fund financial statements, and
3) notes to the financial statements. This report also includes other supplementary
information in addition to the basic financial statements.
The government -wide financial statements are designed to provide readers with a broad
overview of the City of Moab's finances, in a manner similar to a private -sector business.
• The statement of net assets presents information on all of the City of Moab's
assets and liabilities, with the difference between the two reported as net
assets. Over time, increases or decreases in net assets may serve as a useful
indicator of whether the financial position of the City of Moab is improving or
deteriorating. However, other non -financial factors will need to be
considered.
• 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,
MDA-1
regardless of the timing of related cash flows. Thus, all of the current year's
revenues and expenses are taken into account regardless of when cash is
received or paid.
Both of the government -wide financial statements distinguish functions of the City of
Moab 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 government -wide financial statements can be found on pages 3-4 of this report.
REPORTING THE CITY'S MOST SIGNIFICANT FUNDS
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 of
Moab 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 three
categories: governmental funds, proprietary funds, and fiduciary funds.
• Governmental funds — These funds are used to account for the same functions
reported as governmental activities in the government -wide financial
statements. These fund statements focus on how money flows into and out of
these funds and the balances left at year-end that are available for spending.
These funds are reported using an accounting method called modified accrual
accounting, which measures cash and other financial assets that can be readily
converted to cash. The governmental fund statements provide a detailed
short-term view of the City's general government operations and the basic
services it provides. Governmental fund information helps interested persons
determine whether there are more or fewer financial resources that can be
spent in the near future to finance the City's programs. We describe the
relationship (or differences) between governmental activities (reported in the
Statement of Net Assets and the Statement of Activities) and governmental
funds in a reconciliation included with the fund financial statements.
The only major governmental fund (as determined by generally accepted
accounting principles) is the General Fund. The balance of the governmental
funds are determined to be non -major and are included in the combining
statements within this report.
• Proprietary funds — The only type of proprietary fund that the City of Moab
maintains is the Water and Sewer Enterprise Fund.
As determined by generally accepted accounting principles, the Water and
Sewer enterprise fund meets the criteria for major fund classification.
MDA-2
" F i d u c i a r y f u n d s T h e s e f u n d s a r e u s e d t o a c c o u n t f o r r e s o u r c e s h e l d f o r t h e
b e n e f i t o f p a r t i e s o u t s i d e t h e g o v e r n m e n t . F i d u c i a r y f u n d s a r e n o t r e f l e c t e d i n
t h e g o v e r n m e n t - w i d e f i n a n c i a l s t a t e m e n t s b e c a u s e t h e r e s o u r c e s o f t h o s e
f u n d s a r e n o t a v a i l a b l e t o s u p p o r t t h e C i t y ' s o w n p r o g r a m s . T h e a c c o u n t i n g
m e t h o d u s e d f o r t h e s e f u n d s i s m u c h l i k e t h a t u s e d f o r p r o p r i e t a r y f u n d s .
G O V E R N M E N T - W I D E F I N A N C I A L A N A L Y S I S
A s n o t e d e a r l i e r , n e t a s s e t s m a y s e r v e o v e r t i m e a s a u s e f u l i n d i c a t o r o f a
g o v e r n m e n t ' s f i n a n c i a l p o s i t i o n . I n t h e c a s e o f t h e C i t y o f M o a b , a s s e t s e x c e e d
l i a b i l i t i e s b y $ 1 8 , 7 9 0 , 7 4 3 .
T h e l a r g e s t p o r t i o n o f t h e C i t y o f M o a b ' s n e t a s s e t s ( 7 4 % ) r e f l e c t s i t s i n v e s t m e n t i n
c a p i t a l a s s e t s ( e . g . , l a n d , b u i l d i n g s , i n f r a s t r u c t u r e a s s e t s , a n d m a c h i n e r y a n d
e q u i p m e n t ) , l e s s a n y r e l a t e d d e b t u s e d t o a c q u i r e t h o s e a s s e t s t h a t i s s t i l l o u t s t a n d i n g .
T h e C i t y u s e s t h e s e c a p i t a l a s s e t s t o p r o v i d e s e r v i c e s t o c i t i z e n s ; c o n s e q u e n t l y , t h e s e
a s s e t s a r e n o t a v a i l a b l e f o r f u t u r e s p e n d i n g . A l t h o u g h t h e C i t y ' s i n v e s t m e n t i n i t s
c a p i t a l a s s e t s i s r e p o r t e d n e t o f r e l a t e d d e b t , i t s h o u l d b e n o t e d t h a t t h e r e s o u r c e s
n e e d e d t o r e p a y t h i s d e b t m u s t b e p r o v i d e d f r o m o t h e r s o u r c e s , s i n c e t h e c a p i t a l a s s e t s
t h e m s e l v e s c a n n o t b e u s e d t o l i q u i d a t e t h e s e l i a b i l i t i e s .
A s u m m a r y f i n a n c i a l i n f o r m a t i o n f o r J u n e 3 0 , 2 0 0 5 a n d 2 0 0 6 f o l l o w :
N e t A s s e t s
J u n e 3 0 , 2 0 0 6 a n d 2 0 0 5
C u r r e n t a n d o t h e r a s s e t s
C a p i t a l a s s e t s
T o t a l a s s e t s
O t h e r l i a b i l i t i e s
L o n g - t e r n l i a b i l i t i e s o u t s t a n d i n g
T o t a l l i a b i l i t i e s
N e t a s s e t s :
I n v e s t e d i n c a p i t a l a s s e t s , n e t
o f r e l a t e d d e b t
R e s t r i c t e d
U n r e s t r i c t e d
T o t a l n e t a s s e t s
G o v e r n m e n t a l A c t i v i t i e s
2 0 0 6 2 0 0 5
$ 3 , 3 4 0 , 5 2 2
9 , 3 7 4 , 4 5 2
$ 2 , 1 3 9 , 5 0 3
8 , 7 7 0 , 4 1 9
1 2 , 7 1 4 , 9 7 4 1 0 , 9 0 9 , 9 2 2
3 6 4 , 0 7 1
1 , 9 8 4 , 5 8 9
3 4 5 , 1 6 0
2 , 0 2 3 , 0 8 4
2 , 3 4 8 , 6 6 0 2 , 3 6 8 , 2 4 4
7 , 3 8 4 , 4 5 2
4 2 3 , 0 5 9
2 , 5 5 8 , 8 0 3
6 , 7 2 0 , 4 1 9
6 0 6 , 7 0 7
1 , 2 1 4 , 5 5 2
B u s i n e s s - t y p e A c t i v i t i e s T o t a l
2 0 0 6 2 0 0 5 2 0 0 6 2 0 0 5
$ 1 , 8 5 0 , 2 6 1 $ 2 , 5 0 1 , 4 3 3 $ 5 , 1 9 0 , 7 8 3 $ 4 , 6 4 0 , 9 3 6
7 , 2 9 8 , 4 0 6 6 , 5 6 5 , 7 7 6 1 6 , 6 7 2 , 8 5 8 1 5 , 3 3 6 , 1 9 5
9 , 1 4 8 , 6 6 7 9 , 0 6 7 , 2 0 9 2 1 , 8 6 3 , 6 4 1 1 9 , 9 7 7 , 1 3 1
3 2 2 , 0 9 0 3 1 8 , 0 4 5 6 8 6 , 1 6 1 6 6 3 , 2 0 5
4 0 2 , 1 4 8 6 9 1 , 1 4 8 2 , 3 8 6 , 7 3 7 2 , 7 1 4 , 2 3 2
7 2 4 , 2 3 8 1 , 0 0 9 , 1 9 3 3 , 0 7 2 , 8 9 8 3 , 3 7 7 , 4 3 7
6 , 6 0 7 , 2 5 8
1 , 4 9 2 , 3 6 5
3 2 4 , 8 0 6
5 , 5 9 5 , 6 2 8
1 , 3 5 2 , 8 9 0
1 , 1 0 9 , 4 9 8
1 3 , 9 9 1 , 7 1 0
1 , 9 1 5 , 4 2 4
2 , 8 8 3 , 6 0 9
1 2 , 3 1 6 , 0 4 7
1 , 9 5 9 , 5 9 7
2 , 3 2 4 , 0 5 0
$ 1 0 , 3 6 6 , 3 1 4 $ 8 , 5 4 1 , 6 7 8 $ 8 , 4 2 4 , 4 2 9 $ 8 , 0 5 8 , 0 1 6 $ 1 8 , 7 9 0 , 7 4 3 $ 1 6 , 5 9 9 , 6 9 4
M D A - 3
Changes in Net Assets
June 30, 2006 and 2005
Governmental Activities
Business -type Activities Total
2006 2005 2006 2005 2006 2005
Revenues:
Program revenues:
Charges for services $ 1,384,835 $ 1,358,788 $ 1,336,316 $ 1,267,361 $ 2,721,151 $ 2,626,149
Operating grants and contribs 337,302 262,874 - - 337,302 262,874
Capital grants and contribs 98,378 161,200 146,354 104,769 244,732 265,969
General revenues:
General sales and use tax 1,187,549 1,081,461 - - 1,187,549 1,081,461
Franchise tax 164,658 116,293 164,658 116,293
Highway tax 351,220 326,331 - - 351,220 326,331
Transient room tax 241,710 215,688 241,710 215,688
Resort community tax 1,989,433 1,846,213 1,989,433 1,846,213
Energy tax 59,998 54,797 - - 59,998 54,797
Unrestricted investment earning 122,793 85,502 69,130 63,692 191,923 149,194
Other 1,047,216 28,004 - - 1,047,216 28,004
Transfers
Total revenues 6,985,092 5,537,151 1,551,800 1,435,822 8,536,892 6,972,973
Expenses:
General government 1,553,662 1,036,460 - 1,553,662 1,036,460
Public safety 1,040,397 1,217,243 - - 1,040,397 1,217,243
Highways and public works 1,075,719 970,868 1,075,719 970,868
Sanitation 693,413 653,507 - - 693,413 653,507
Parks and recreation 772,370 680,755 772,370 680,755
Community and economic devel 24,895 39,500 - - 24,895 39,500
Water Utility 678,614 735,554 678,614 735,554
Sewer Utility - - 506,773 644,123 506,773 644,123
Total expenses 5,160,456 4,598,333 1,185,387 1,379,677 6,345,843 5,978,010
Increase in net assets 1,824,636 938,818 366,413 56,145 2,191,049 994,963
Net assets - beginning 8,541,678 7,602,860 8,058,016 8,001,871 16,599,694 15,604,731
Net assets - ending $ 10,366,314 $ 8,541,678 $ 8,424,429 $ 8,058,016 $ 18,790,743 $ 16,599,694
FINANCIAL ANALYSIS OF GOVERNMENT'S FUNDS
The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in
assessing the City's financing requirements.
As of June 30, 2006, the City's governmental funds (General, Capital Projects, &
Special Revenue) reported combined fund equity of $3,301,741. This represents an
MDA-4
increase of $1,119,261 from last year's ending balances; this increase is due to the
carryover of several significant capital projects to the next fiscal year.
The General Fund is the chief operating fund of the City. All activities that are not
required to be accounted for in separate funds either by state or local ordinance or by
a desire to maintain a matching of revenues and expenses are accounted for in this
fund. Taxes continue to be the largest source of revenue in the General Fund and
represent 72% of total general fund revenues.
As stated earlier, the City maintains an enterprise fund to account for the business -
type activities of the City. The fund statements included in this report provide the
same information for business -type activities as is provided in the government -wide
financial statements. However, the difference is that the fund statements provide
much more detail.
GENERAL FUND BUDGETARY HIGHLIGHTS
During the fiscal year, the General Fund budget was amended from an original budget
expenditure total of $5,442,126 to a final budget of $6,277,392. This increase was
made because of the City Animal Shelter Project and the City match for the Main
Street Reconstruction Project.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets — The City of Moab's investment in capital assets for its governmental
and business -type activities as of June 30, 2006, amounts to $16,672,858 (net of
accumulated depreciation). This investment in capital assets includes land, buildings
and systems, improvements, infrastructure (streets, sidewalks, curb and gutter, etc.),
and machinery and equipment.
Major capital asset events during this fiscal year included the following:
o Swanny Park Restrooms $126,330
o City Center Hallway Project $51,580
o Main Street Improvements $181,309
o North Area Trunk Sewer Project $1,058,412
Long-term debt — At June 30, 2006, the City had total bonded debt outstanding of
$2,681,148. All of this debt is revenue bond debt. The City of Moab has no general
obligation debt.
ECONOMIC FACTORS AND NEXT YEAR'S BUDGET AND RATES
• The unemployment rate for Grand County was 5.8% compared with a state
unemployment rate of 4.3% and a national rate of 4.5%. (Source: Utah Dept
of Workforce Services).
MDA-5
" S o m e c a p i t a l i m p r o v e m e n t s e x p e c t e d i n t h e F Y 2 0 0 6 - 0 7 b u d g e t i n c l u d e :
o C o n s t r u c t i o n o f A n i m a l S h e l t e r
o C i t y C e n t e r T e n a n t I m p r o v e m e n t s
o C o m p l e t i o n o f E a s t C e n t e r S t r e e t I m p r o v e m e n t s P r o j e c t
o B a l l p a r k L i g h t i n g a n d F e n c i n g P r o j e c t
o 5 0 0 W e s t R o a d I m p r o v e m e n t s P r o j e c t
R E Q U E S T S F O R I N F O R M A T I O N
T h i s f i n a n c i a l r e p o r t i s d e s i g n e d t o p r o v i d e a g e n e r a l o v e r v i e w o f t h e C i t y o f M o a b ' s
f i n a n c e s f o r a l l t h o s e w i t h a n i n t e r e s t i n t h e C i t y ' s f i n a n c e s . Q u e s t i o n s c o n c e r n i n g a n y
i n f o r m a t i o n p r o v i d e d i n t h i s r e p o r t o r r e q u e s t f o r a d d i t i o n a l f i n a n c i a l i n f o r m a t i o n s h o u l d
b e a d d r e s s e d t o : C i t y R e c o r d e r , C i t y o f M o a b o f M o a b , 2 1 7 E a s t C e n t e r S t r e e t , U T
8 4 5 3 2 .
M D A - 6
BASIC FINANCIAL STATEMENTS
City of Moab
Statement of Net Assets
June 30, 2006
Primary Government
Governmental Business -type
Activities Activities Total
ASSETS
Cash and cash equivalents $ 1,857,070 $ 242,636 $ 2,099,706
Accounts receivable - (net of allowance) 442,046 109,472 551,518
Deposits 6,119 6,119
Note receivable 612,228 612,228
Restricted cash and cash equivalents 423,059 1,498,153 1,921,212
Capital assets (net of accumulated depreciation):
Land 371,977 244,935 616,912
Buildings 4,195,444 244,641 4,440,085
Improvements 1,135,341 6,648,054 7,783,395
Machinery and equipment 809,901 125,968 935,869
Automobiles and trucks 775,093 16,260 791,353
Office equipment 385,824 548 386,372
Water shares - 18,000 18,000
Infrastructure 1,700,872 - 1,700,872
Total assets 12,714,974 9,148,667 21,863,641
LIABILITIES
Accounts payable and accrued liabilities
Customer deposits
Accrued interest payable
Compensated absences
Noncurrent liabilities:
Due within one year
Due in more than one year
Total liabilities
38,781
215,103
110,187
1,984,589
2,348,660
5,788
6,260
21,042
289,000
402,148
38,781
5,788
6,260
236,145
399,187
2,386,737
724,238 3,072,898
NET ASSETS
Invested in capital assets, net of related debt 7,384,452 6,607,258 13,991,710
Restricted for:
Class "C" roads 271,840 271,840
Bond requirements - 674,723 674,723
Impact fees - 817,642 817,642
Capital projects 151,219 - 151,219
Unrestricted 2,558,803 324,806 2,883,609
Total net assets $ 10,366,314 $ 8,424,429 $ 18,790,743
The Notes to the Financial Statements are an integral part of this statement. 3
Function/Programs
Primary government:
Governmental activities:
General government
Public safety
Highways and public works
Sanitation
Parks, recreation and public property
Community and economic development
Total governmental activities
Business -type activities:
Water Utility
Sewer Utility
Total business -type activities
Total primary government
Expenses
$1,553,662
1,040,397
1,075,719
693,413
772,370
24,895
5,160,456
City of Moab
Statement of Activities
For the Year Ended June 30, 2006
Program Revenues
Charges for
Services
$ 272,655
169,537
728,171
214,472
Operating
Grants and
Contributions
Net (Expense) Revenues and Changes in Net Assets
Capital Primary Government
Grants and
Contributions Total
$ 71,179 $
15,000
186,297
64,826
1,384,835 337,302
678,614 587,615
506,773 748,701
1,185,387 1,336,316
98,378
Governmental Business -type
Activities Activities
$ (1,209,828) $
(855,860)
(889,422)
34,758
(394,694)
(24,895)
98,378 (3,339,941)
23,864
122,490
146,354
$6,345,843 $ 2,721,151 $ 337,302 $ 244,732 (3,339,941)
General revenues:
General sales and use tax
Franchise tax
Highway tax
Transient room tax
Resort community tax
Energy tax
Unrestricted investment earnings
Gain or loss on sale of capital assets
Miscellaneous
Total general revenues
Change in net assets
Net assets - beginning
Net assets - ending
1,187,549
164,658
351,220
241,710
1,989,433
59,998
122,793
895,005
152,211
5,164,577
1,824,636
8,541,678
(67,135)
364,418
297,283
297,283
69,130
69,130
366,413
8,058,016
$ (1,209,828)
(855,860)
(889,422)
34,758
(394,694)
(24,895)
(3,339,941)
(67,135)
364,418
297,283
(3,042,658)
1,187, 549
164,658
351,220
241,710
1,989,433
59,998
191,923
895,005
152,211
5,233,707
2,191,049
16,599,694
$ 10,366,314 $ 8,424,429 $ 18,790,743
The Notes to the Financial Statements are and integral part of this statement.
ASSETS
Cash and cash equivalents
Receivables (net):
Garbage
Franchise tax
Sales and use tax
Other
Deposits
Notes receivable
Restricted assets:
Cash and cash equivalents
Total assets
LIABILITIES AND FUND BALANCES
Liabilities:
Accounts payable
Total liabilities
City of Moab
Balance Sheet
Governmental Funds
June 30, 2006
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
$ 487,674 $ 1,305,308 $ 64,088 $ 1,857,070
67,526
15,702
354,260
4,558
6,119
612,228
271,840 151,219
67,526
15,702
354,260
4,558
6,119
612,228
423,059
$ 1,207,679 $ 2,068,755 $ 64,088 $ 3,340,522
$ 38,781 $ - $ $ 38,781
38,781 - 38,781
Fund Balances:
Fund balances reserved for:
Class "C" roads 271,840 - 271,840
Recreation - 61,459 61,459
Youth city council - - 2,629 2,629
Capital projects - 151,219 151,219
Unreserved, reported in:
General fund 897,058 - 897,058
Capital projects funds - 1,917,536 1,917,536
Total fund balances 1,168,898 2,068,755 64,088 3,301,741
Total liabilities and fund balances $1,207,679 $ 2,068,755 $ 64,088 $ 3,340,522
The Notes to the Financial Statements are an integral part of this statement. 5
City of Moab
Reconciliation of Total Governmental Fund Balances to
Net Assets of Governmental Activities
June 30, 2006
Amounts reported for governmental activities in the statement of net assets are
different because:
Total fund balances - governmental fund types (page 5): $ 3,301,741
Capital assets used in governmental activities are not financial resources and, therefore,
are not reported in the funds. 9,374,452
Long-term liabilities, including bonds payable, are not due and payable in the current
period and therefore are not reported in the funds. (2,309,879)
Net assets of government activities (page 3): $ 10,366,314
The Notes to the Financial Statements are an integral part of this statement. 6
City of Moab
Statement of Revenues, Expenditures, and Changes in Fund Balances
Governmental Funds
For the Year Ended June 30, 2006
Capital Other Total
General Projects Governmental Governmental
Fund Fund Funds Funds
REVENUES
Taxes $ 3,994,568 $ $ $ 3,994,568
Licenses and permits 151,778 - - 151,778
Intergovernmental 201,297 71,179 64,826 337,302
Charges for services 791,719 - 150,924 942,643
Fines and forfeitures 65,414 - - 65,414
Contributions and donations - 98,378 - 98,378
Interest Income - 34,118 145 34,263
Miscellaneous revenue 358,274 659,967 - 1,018,241
Total revenues 5,563,050 863,642 215,895 6,642,587
EXPENDITURES
Current:
General government
Public safety
Highways and public works
Sanitation
Parks, recreation and public property
Community and economic development
Capital outlay
Debt service:
Principal retirement
Interest and fiscal charges
Total expenditures
Excess revenues over (under)
expenditures
OTHER FINANCING SOURCES (USES)
Proceeds from sale of capital assets
Proceeds from debt issuance
Transfers in
Transfers out
Total other financing sources and uses
Excess of revenues and other sources
over (under) expenditures and other uses
Fund balances - beginning
Fund balances - ending
1,200,140
1,479,144
953,990
693,413
499,448
24,895
648,841
1,200,140
- 1,479,144
- 953,990
- 693,413
255,589 755,037
- 24,895
648,841
60,000 60,000
51,250 - 51,250
4,851,030 760,091
255,589 5,866,710
712,020 103,551 (39,694) 775,877
351,692
71,692
(1,245,379)
(821,995)
351,692
- - 71,692
1,166,080 79,299 1,245,379
- - (1,245,379)
1,166,080 79,299 423,384
(109,975) 1,269,631 39,605 1,199,261
1,278,873 799,124 24,483 2,102,480
$ 1,168,898 $ 2,068,755 $ 64,088 $ 3,301,741
The Notes to the Financial Statements are an integral part of this statement. 7
City of Moab
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, 2006
Amounts reported for governmental activities in the statement of activities are
different because:
Net changes in fund balances - total governmental funds $ 1,199,261
Governmental funds report capital outlays as expenditures. However, in the
statement of activities the cost of those assets is allocated over their estimated
useful lives and reported as depreciation expense.
Capital outlay
Depreciation expense
Governmental funds only report the disposal of fixed assets to the extent proceeds
are received from the sale. In the statement of activities, a gain or loss is reported
for each disposal. This is the difference between the cash proceeds and the gain shown.
1,287,880
(674,660)
(9,187)
Repayment of the principal on capital leases is an expenditure in the governmental
funds, but the repayment reduces the liability in the statement of net assets. 92,296
The issuance of new debt in the form of a capital leases and a bond is shown as revenue
in the statement of revenues, expenditures and changes in fund balance, but the issuance
increases the long term liabilities in the statement of net assets.
Some expenses reported in the statement of activities do not require the use of
current financial resources and, therefore, are not reported as expenditures in
governmental funds:
Compensated Absences
(71,692)
738
Change in net assets of governmental activities $ 1,824,636
The Notes to the Financial Statements are an integral part of this statement. 8
City of Moab
Statement of Revenues, Expenditures and Changes in Fund Balance -- Budget and Actual
General Fund
For the Year Ended June 30, 2006
Budgeted Amounts
Original Final Variance with
Budget Budget Actual Final Budget
Taxes:
Sales and use taxes $ 985,000 $ 1,042,595 $ 1,187,549 $ 144,954
Franchise taxes 125,000 125,000 164,658 39,658
Highway taxes 270,000 270,000 351,220 81,220
Transient room taxes 211,000 211,000 241,710 30,710
Resort community taxes 1,710,000 1,740,000 1,989,433 249,433
Energy taxes 62,000 62,000 59,998 (2,002)
Total Taxes 3,363,000 3,450,595 3,994,568 543,973
Licenses and permits:
Beer licenses
Flat business licenses
Building permits - city
Building permits - commercial
Plan check fees
Other licenses and permits
Total licenses and permits
8,000 7,170 (830)
54,000 46,000 47,283 1,283
32,300 14,000 68,288 54,288
14,500 25,281 10,781
2,000 3,384 1,384
1,800 372 (1,428)
86,300 86,300
151,778 65,478
Intergovernmental revenue:
Local grants 4,100 15,000 10,900
State grants 188,800 192,640 186,297 (6,343)
Total intergovernmental revenue 188,800 196,740 201,297 4,557
Charges for services:
Refuse collection charges 685,650 729,750 728,171 (1,579)
Swimming pool 33,700 33,850 43,626 9,776
Golf course - - - -
Other 44,400 22,700 19,922 (2,778)
Total charges for services 763,750 786,300 791,719 5,419
Fines and forfeitures
Miscellaneous:
Interest
Other
Administration charges
Total Miscellaneous
48,500 56,500
65,414 8,914
20,800 55,800 88,530 32,730
2,550 86,893 44,744 (42,149)
225,000 225,000 225,000 -
248,350 367,693 358,274 (9,419)
Total Revenues $ 4,698,700 $ 4,944,128 $ 5,563,050 $ 618,922
9
The Notes to The Financial Statements are an integral part of this statement.
City of Moab
Statement of Revenues, Expenditures and Changes in Fund Balance -- Budget and Actual (continued)
General Fund
For the Year Ended June 30, 2006
Budgeted Amounts
Original Final Variance with
Budget Budget Actual Final Budget
General Government:
Executive and central $ 123,700 $ 129,750 $ 129,646 $ (104)
Administrative 173,450 173,450 153,744 (19,706)
Recorder 252,221 256,377 243,343 (13,034)
General government 195,060 172,813 154,974 (17,839)
Planning 221,300 221,344 217,847 (3,497)
Engineering 83,850 83,450 80,539 (2,911)
Treasurer 140,062 140,062 136,824 (3,238)
Attorney 82,500 77,500 83,223 5,723
Total General government 1,272,143 1,254,746 1,200,140 (54,606)
Public Safety:
Police department 1,177,417 1,251,967 1,234,917 (17,050)
Building inspection 62,000 62,742 64,244 1,502
Animal control 162,280 183,687 179,983 (3,704)
Total public safety 1,401,697 1,498,396 1,479,144 (19,252)
Highways and public improvements:
Storm drains 6,900 6,900 2,972 (3,928)
Streets 816,158 816,158 813,838 (2,320)
Safety 17,700 17,700 15,477 (2,223)
Class C road 315,615 315,615 121,703 (193,912)
Total highways and public improvements 1,156,373 1,156,373 953,990 (202,383)
Parks, recreation and public property 494,250 511,736 499,448 (12,288)
Sanitation 653,000 695,000 693,413 (1,587)
Community and economic development 48,578 48,578 24,895 (23,683)
Total expenditures - general fund
Proceeds from debt
Transfers out
Sale of equipment
Total other financing sources (uses)
5,026,041 5,164,829 4,851,030 (313,799)
(327,341) (220,701) 712,020 932,721
71,693 71,692 (1)
(416,085) (1,112,563) (1,245,379) (132,816)
267,000 351,600 351,692 92
(149,085)
(689,270) (821,995) (132,725)
(476,426) (909,971) (109,975) 799,996
1,278,873
1,278,873 1,278,873
$ 802,447 $ 368,902 $ 1,168,898 $ 799,996
The Notes to The Financial Statements are an integral part of this statement.
City of Moab
Statement of Net Assets
Proprietary Funds
June 30, 2006
ASSETS
Current assets:
Cash and cash equivalents
Due from other funds
Accounts receivable (net)
Total current assets
Noncurrent assets:
Restricted cash and cash equivalents
Capital assets
Less: Accumulated depreciation
Total noncurrent assets
Total assets
LIABILITIES
Current liabilities:
Compensated absences
Customer deposits
Accrued interest payable
Due to other funds
Current portion of bonds payable
Total current liabilities
Noncurrent liabilities:
Bonds payable
Total noncurrent liabilities
Total liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for bond requirements
Restricted for impact fees
Unrestricted
Total net assets
Business -Type Activities - Enterprise Funds
Water
Sewer
Total
$ - $ 242,636 $ 242,636
- 833,132 833,132
62,416 47,056 109,472
62,416 1,122,824 1,185,240
547,671
5,444,523
(2,405,035)
3,587,159
3,649,575
950,482
7,035,903
(2,776,985)
5,209,400
6,332,224
1,498,153
12,480,426
(5,182,020)
8,796,559
9,981,799
10,521
5,788
833,132
78,000
927,441
193,480
193,480
1,120,921
10,521
6,260
211,000
227,781
208,668
208,668
436,449
21,042
5,788
6,260
833,132
289,000
1,155,222
402,148
402,148
1,557,370
2,768,008 3,839,250 6,607,258
329,519 345,204 674,723
212,364 605,278 817,642
(781,237) 1,106,043 324,806
$ 2,528,654 $ 5,895,775 $ 8,424,429
The Notes to the Financial Statements are an integral part of this statement. 11
City of Moab
Statement of Revenues, Expenses, and Changes in Fund Net Assets
Proprietary Funds
For the Year Ended June 30, 2006
Business -Type Activities - Enterprise Funds
Water
Sewer Total
Operating revenues:
Charges for service $ 547,560 $ 623,258 $ 1,170,818
Other operating income 40,055 125,443 165,498
Total operating revenues 587,615 748,701 1,336,316
Operating expenses:
Salaries and wages 164,575
Employee benefits 97,628
Contractual services 13,852
Materials and supplies 17,198
General fund overhead 100,000
Special department supplies 40,945
Depreciation 200,093
Other expenses 44,323
Total operating expenses 678,614
Operating income (90,999)
Nonoperating revenues (expenses):
Interest revenue
Interest expense
Impact fees
Total nonoperating revenues (expenses)
Change in net assets
Total net assets - beginning
Total net assets - ending
63,140
37,933
44,580
13,131
125,000
17,825
152,285
35,575
227,715
135,561
58,432
30,329
225,000
58,770
352,378
79,898
489,469 1,168,083
259,232 168,233
35,326 33,804 69,130
(17,304) (17,304)
23,864 122,490 146,354
59,190 138,990 198,180
(31,809) 398,222 366,413
2,560,463 5,497,553 8,058,016
$ 2,528,654 $ 5,895,775 $ 8,424,429
The Notes to the Financial Statements are an integral part of this statement. 12
City of Moab
Statement of Cash Flows
Proprietary Funds
For the Year Ended June 30, 2006
Cash Flows From Operating Activities
Receipts from customers
Payments to suppliers
Payments to employees
Net cash provided (used) by
operating activities
Cash Flows From Capital and Related
Financing Activities
Purchases of capital assets
Principal paid on capital debt
Interest paid on capital debt
Increase/decrease in due to/from other funds
Impact fees collected
Net cash provided (used) by capital
and related financing activities
Cash Flows From Investing Activities
Interest and dividends received
Net cash provided (used) by
investing activities
Net increase (decrease) in cash and
cash equivalents
Cash and cash equivalents - beginning
Cash and cash equivalents - ending
Business -Type Activities - Enterprise Funds
Water Sewer Total
$ 573,418 $ 746,012 $ 1,319,430
(215,943) (242,441) (458,384)
(262,203) (101,073) (363,276)
95,272 402,498
497,770
(11,965) (1,073,044) (1,085,009)
(78,000) (201,000) (279,000)
(17,304) (17,304)
(42,432) 42,432 -
23,864 122,490 146,354
(108,533) (1,126,426) (1,234,959)
35,326
35,326
33,804 69,130
33,804 69,130
22,065 (690,124) (668,059)
525,606 1,883,242 2,408,848
$ 547,671 $ 1,193,118 $ 1,740,789
Reconciliation of operating income to
net cash provided (used) by operating
activities:
Operating income $ (90,999) $ 259,232 $ 168,233
Adjustments to reconcile operating
income to net cash provided (used) by
operating activities:
Depreciation expense 200,093 152,285 352,378
(Increase)/decrease in accounts receivable (14,197) (2,689) (16,886)
Increase (decrease) in customer deposits 375 375
Increase (decrease) in accrued interest payable (6,330) (6,330)
Total adjustments 186,271 143,266 329,537
Net cash provided (used) by
operating activities $ 95,272 $ 402,498 $ 497,770
The Notes to the Financial Statements are an integral part of this statement. 13
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
INDEX
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
A. Financial Reporting Entity
B. Basis of Presentation
C. Measurement Focus and Basis of Accounting
D. Assets, Liabilities, and Equity
E. Revenues, Expenditures, and Expenses
NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
A. Fund Accounting Requirements
B. Deposits and Investments Laws and Regulations
C. Revenue Restrictions
D. Debt Restrictions and Covenants
E. Fund Equity Restrictions
F. Budgetary Basis of Accounting
NOTE 3. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
A. Cash and Investments
B. Restricted Assets
C. Accounts Receivable
D. Capital Assets
E. Accounts Payable
F. Long-term Debt
G. Interfund Transactions and Balances
H. Fund Equity
NOTE 4. OTHER NOTES
A. Employee Pension and Other Benefit Plans
B. Risk Management
C. Landfill Agreement
14
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
NOTE 1. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
The City complies with generally accepted accounting principles (GAAP). GAAP includes all relevant
Governmental Accounting Standards Board (GASB) pronouncements. In the government -wide financial
statements and the fund financial statements for the proprietary funds, Financial Accounting Standards
Board (FASB) pronouncements and Accounting Principles Board (APB) opinions issued on or before
November 30, 1989, have been applied unless those pronouncements conflict with or contradict GASB
pronouncements, in which case, GASB prevails. For enterprise funds, GASB Statement Nos. 20 and 34
provide the City the option of electing to apply FASB pronouncements issued after November 30, 1989.
The City has elected not to apply those pronouncements. The accounting and reporting framework and the
more significant accounting policies are discussed in subsequent subsections of this Note.
1.A. FINANCIAL REPORTING ENTITY
Moab City is a political subdivision of the State of Utah. The City is governed by a mayor and an elected
board of five council members. The financial statements of Moab City may include those of separately
administered organizations that are controlled by or are dependent on the City (component units.) Control
or dependence is determined on the basis of financial interdependence, selection of governing authority,
designation of management ability to significantly influence operations and accountability for fiscal
matters. Using these criteria no potential component units are included in the City's financial statements.
The accounting policies of Moab City, Utah, conform to generally accepted accounting principles as
applicable to governmental units. The following is a summary of the more significant of such policies.
The City's financial reporting entity comprises the following:
Primary Government:
Component Units:
City of Moab
None
1.B. BASIS OF PRESENTATION
Government -wide Financial Statements:
The Statement of Net Assets and Statement of Activities display information about the reporting
government as a whole. They include all funds of the reporting entity except for fiduciary funds. The
statements distinguish between governmental and business -type activities. Governmental activities
generally are financed through taxes, intergovernmental revenues, and other non -exchange revenues.
Business -type activities are financed in whole or in part by fees charged to external parties for goods or
services.
Fund Financial Statements:
Fund financial statements of the reporting entity are organized into funds, each of which is considered to
be separate accounting entities. Each fund is accounted for by providing a separate set of self -balancing
accounts that constitute its assets, liabilities, fund equity, revenues, and expenditure/expenses. Funds are
organized into three major categories: governmental, proprietary, and fiduciary. An emphasis is placed on
major funds within the governmental and proprietary categories. A fund is considered major if it is the
primary operating fund of the City or meets the following criteria:
15
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
a. Total assets, liabilities, revenues, or expenditures/expenses of that individual governmental or
enterprise fund are at least 10 percent of the corresponding total for all funds of that category
or type; and
b. Total assets, liabilities, revenues, or expenditures/expenses of the individual governmental fund
or enterprise fund are at least 5 percent of the corresponding total for all governmental and
enterprise funds combined.
The funds of the financial reporting entity are described below:
Governmental Funds
General Fund
The General Fund is the primary operating fund of the City and always classified as a major
fund. It is used to account for all activities except those legally or administratively required to
be accounted for in other funds.
Special Revenue Funds
Special Revenue Funds are used to account for the proceeds of specific revenue sources that
are legally restricted to expenditures for certain purposes.
Capital Project Fund
The Capital Project Fund is used to account for resources designated for the acquisition or
construction of specific capital projects or items. The reporting entity includes only one
Capital Project Fund and it is used to account for the acquisition of capital assets with
transfers made from the General Fund.
Proprietary Fund
Enterprise Fund
Enterprise funds are used to account for business -like activities provided to the general
public. These activities are financed primarily by user charges and the measurement of
financial activity focuses on net income measurement similar to the private sector. The
reporting entity includes the Water and Sewer funds.
Major and Nonmajor Funds
The funds are further classified
Fund
Major:
General
Capital Projects Fund:
Community Development Fund
Mill Creek Project Fund
Capital Project Fund
Sanitation Capital Project Fund
as major or non -major as follows:
Brief Description
See above for description.
Accounts for activity with the City's
capital improvements.
16
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Enterprise Funds:
Water and Sewer Accounts for revenues and expenditures of
water and sewer utilities.
Nonmajor:
Special Revenue Funds:
Recreation Fund
Arts and Recreation Center
Youth City Council
Accounts for revenues and expenditures for
activities with the recreation, arts and
recreation center and youth city council.
1.C. MEASUREMENT FOCUS AND BASIS OF ACCOUNTING
Measurement focus is a term used to describe "which" transactions are recorded within the various
financial statements. Basis of accounting refers to "when" transactions are recorded regardless of the
measurement focus applied.
Measurement Focus
On the government -wide Statement of Net Assets and the Statement of Activities, both governmental and
business -like activities are presented using the economic resources measurement focus as defined in item
b. below.
In the fund financial statements, the "current financial resources" measurement focus or the "economic
resources" measurement focus is used as appropriate:
a. All governmental funds utilize a "current financial resources" measurement focus. Only
current financial assets and liabilities are generally included on their balance sheets. Their
operating statements present sources and uses of available spendable financial resources during
a given period. These funds use fund balance as their measure of available spendable financial
resources at the end of the period.
b. The proprietary fund utilizes an "economic resources" measurement focus. The accounting
objectives of this measurement focus are the determination of operating income, changes in net
assets (or cost recovery), financial position, and cash flows. All assets and liabilities (whether
current or noncurrent) associated with their activities are reported. Proprietary fund equity is
classified as net assets.
c. Agency funds are not involved in the measurement of results of operations; therefore,
measurement focus is not applicable to them.
Basis of Accounting
In the government -wide Statement of Net Assets and Statement of Activities, both governmental and
business -like activities are presented using the accrual basis of accounting. Under the accrual basis of
accounting, revenues are recognized when earned and expenses are recorded when the liability is incurred
17
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
or economic asset used. Revenues, expenses, gains, losses, assets, and liabilities resulting from exchange
and exchange -like transactions are recognized when the exchange takes place.
In the fund financial statements, governmental funds and agency funds are presented on the modified
accrual basis of accounting. Under this modified accrual basis of accounting, revenues are recognized
when "measurable and available." Measurable means knowing or being able to reasonably estimate the
amount. Available means collectible within the current period or within sixty days after year end.
Expenditures (including capital outlay) are recorded when the related fund liability is incurred, except for
general obligation bond principal and interest which are reported when due.
All proprietary funds utilize the accrual basis of accounting. Under the accrual basis of accounting,
revenues are recognized when earned and expenses are recorded when the liability is incurred or economic
asset used.
1.D. ASSETS, LIABILITIES, AND EQUITY
Cash and Investments
For the purpose of the Statement of Net Assets, "cash, including time deposits" includes all demand,
savings accounts, and certificates of deposits of the City. For the purpose of the proprietary fund
Statement of Cash Flows, "cash and cash equivalents" include all demand and savings accounts, and
certificates of deposit or short-term investments with an original maturity of three months or less.
Investments of promissory note trustee accounts are not considered cash equivalents.
Investments are carried at fair value except for short-term U.S. Treasury obligations with a remaining
maturity at the time of purchase of one year or less. Those investments are reported at amortized cost. Fair
value is based on quoted market price. Additional cash and investment disclosures are presented in Notes
2.B. and 3.A.
Interfund Receivables and Payables
During the course of operations, numerous transactions occur between individual funds that may result in
amounts owed between funds. Those related to goods and services type transactions are classified as "due
to and from other funds." Short-term interfund loans are reported as "interfund receivables and payables."
Long-term interfund loans (noncurrent portion) are reported as "advances from and to other funds."
Interfund receivables and payables between funds within governmental activities are eliminated in the
Statement of Net Assets. See Note 3.G. for details of interfund transactions, including receivables and
payables at year-end.
Receivables
In the government -wide statements, receivables consist of all revenues earned at year-end and not yet
received. Allowances for uncollectible accounts receivable are based upon historical trends and the
periodic aging of accounts receivable. Major receivable balances for the governmental activities include;
sales taxes, garbage utilities, franchise taxes, and business licenses. Business -type activities report utilities
as their major receivables.
In the fund financial statements, material receivables in governmental funds include revenue accruals such
as sales tax, franchise tax, and grants and other similar intergovernmental revenues since they are usually
18
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
both measurable and available. Non -exchange transactions collectible but not available are deferred in the
fund financial statements in accordance with modified accrual, but not deferred in the government -wide
financial statements in accordance with the accrual basis. Interest and investment earnings are recorded
when earned only if paid within 60 days since they would be considered both measurable and available.
Proprietary fund material receivables consist of all revenues earned at year-end and not yet received.
Utility accounts receivable and interest earnings compose the majority of proprietary fund receivables.
Allowances for uncollectible accounts receivable are based upon historical trends and the periodic aging
of accounts receivable.
Fixed Assets
The accounting treatment over property, plant, and equipment (fixed assets) depends on whether the assets
are used in governmental fund operations or proprietary fund operations and whether they are reported in
the government -wide or fund financial statements.
Election Not to Report Infrastructure Retroactively
Management of Moab City has elected not to report infrastructure retroactively. This is allowed by
provisions of GASB Statement 34 for all governments with less than $10 million in revenues. The City
began to report infrastructure prospectively during the fiscal year ended in 2004.
Government -wide Statements
In the government -wide financial statements, fixed assets are accounted for as capital assets. All fixed
assets are valued at historical cost, or estimated historical cost if actual is unavailable, except for donated
fixed assets which are recorded at their estimated fair value at the date of donation.
Depreciation of all exhaustible fixed assets is recorded as an allocated expense in the Statement of
Activities, with accumulated depreciation reflected in the Statement of Net Assets. Depreciation is
provided over the assets' estimated useful lives using the straight-line method of depreciation. The range
of estimated useful lives by type of asset is as follows:
Governmental Business -Type
Activities Activities
Description Estimated Lives Estimated Lives
Buildings and Improvements 30-45 years 30-45 years
Machinery and Equipment 10-15 years 10-15 years
Vehicles 5-10 years 5-10 years
Infrastructure 30 years 30 years
Fund Financial Statements
In the fund financial statements, fixed assets used in governmental fund operations are accounted for as
capital outlay expenditures of the governmental fund upon acquisition. Fixed assets used in proprietary
fund operations are accounted for the same as in the government -wide statements.
19
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Restricted Assets
Restricted assets consist of various cash balances that are restricted as to their use. Certain cash balances
are restricted by provisions of the bond resolutions. These include the bond, and emergency repairs
accounts in the enterprise funds. Customer deposits are also restricted in the enterprise funds. Amounts
are held in the agency fund for future burial and cemetery costs. Class C Road revenue not spent is
restricted in the general fund to be used for future roadwork.
Long-term Debt
The accounting treatment of long-term debt depends on whether the assets are used in governmental fund
operations or proprietary fund operations and whether they are reported in the government -wide or fund
financial statements.
All long-term debt to be repaid from governmental and business -type resources is reported as liabilities in
the government -wide statements. The long-term debt consists primarily of notes payable, accrued
compensated absences, and a court -assessed judgment.
Long-term debt for governmental funds is not reported as liabilities in the fund financial statements. The
debt proceeds are reported as other financing sources and payment of principle and interest reported as
expenditures. The accounting for proprietary fund is the same in the fund statements as it is in the
government -wide statements.
Compensated Absences
It is the City's policy to permit employees to accumulate earned but unused vacation and sick pay
benefits. No liability is reported for unpaid accumulated sick leave. The liability for these compensated
absences is recorded as long-term debt in the government -wide statements. The current portion of this
debt is estimated based on historical trends. In the fund financial statements, governmental funds report
only the compensated absence liability payable from expendable available financial resources, while the
proprietary funds report the liability as it is incurred.
20
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Equity Classifications
Government -wide Statements
Equity is classified as net assets and displayed in three components:
a. Invested in capital assets, net of related debt —Consists of 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.
b. Restricted net assets —Consists of 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.
c. 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 Statements
Governmental fund equity is classified as fund balance. Fund balance is further classified as reserved and
unreserved, with unreserved further split between designated and undesignated. Proprietary fund equity is
classified the same as in the government -wide statements. See Note 3.H. for additional disclosures.
1.E. REVENUES, EXPENDITURES, AND EXPENSES
Franchise taxes, licenses, interest and special assessments are susceptible to accrual. Sales taxes collected
and held by the state at year-end on behalf of the City are also recognized as revenue. Other receipts and
taxes become measurable and available when cash is received by the City and are recognized as revenue at
that time.
Entitlements and shared revenues are recorded at the time of receipt or earlier if the susceptible to accrual
criteria are met. Expenditure -driven grants are recognized as revenue when the qualifying expenditures
have been incurred and all other grant requirements have been met.
The City does not levy property taxes. Sales taxes are collected by the Utah State Tax Commission and
are remitted to the City monthly.
Operating Revenues and Expenses
Operating revenues and expenses for proprietary funds are those that result from providing services and
producing and delivering goods and/or services. It also includes all revenue and expenses not related to
capital and related financing, noncapital financing, or investing activities.
Expenditures/Expenses
In the government -wide financial statements, expenses are classified by function for both governmental
and business -type activities.
21
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
In the fund financial statements, expenditures are classified as follows:
Governmental Funds —By Character:
Current (further classified by function)
Debt Service
Capital Outlay
Proprietary Fund —By Operating and Non -operating
In the fund financial statements, governmental funds report expenditures of financial resources.
Proprietary funds report expenses relating to use of economic resources.
Interfund Transfers
Permanent reallocation of resources between funds of the reporting entity are classified as interfund
transfers. For the purposes of the Statement of Activities, all interfund transfers between individual
governmental funds have been eliminated.
NOTE 2. STEWARDSHIP, COMPLIANCE, AND ACCOUNTABILITY
By its nature as a local government unit, the City is subject to various federal, state, and local laws and
contractual regulations. An analysis of the City's compliance with significant laws and regulations and
demonstration of its stewardship over City resources follows.
2.A. FUND ACCOUNTING REQUIREMENTS
The City complies with all state and local laws and regulations requiring the use of separate funds. The
legally required funds used by the City include the following:
Fund
General Fund
Required By
State Law
2.B. DEPOSITS AND INVESTMENTS LAWS AND REGULATIONS
The City maintains a cash and investment pool that is available for use by all funds. In addition,
investments are separately held by several of the City funds. Deposits are not collateralized, nor are they
required to be by State statute.
The City follows the requirements of the Utah Money Management Act (Utah Code Annotated 1953,
Section 51, Chapter 7) in handling its depository and temporary investment transactions. This law
requires the deposit of City funds in a "qualified depository." The Act defines a "qualified depository" as
any financial institution whose deposits are insured by an agency of the federal government and which has
been certified by the Commissioner of Financial Institutions as meeting the requirements of the Utah
Money Management Act and adhering to the rules of the Utah Money Management Council.
22
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
The Utah Money Management Act also defines the types of securities allowed as appropriate temporary
investments for the City and the conditions for making investment transactions. Investment transactions
are to be conducted through qualified depositories or primary reporting dealers.
Deposits
Custodial Credit Risk is the risk that, in the event of a bank failure, the City's deposits may not be
returned to it. The City does not have a formal deposit policy for custodial credit risk. As of June 30,
2006, $348,086 of the City's bank balances of $248,086 were uninsured and uncollateralized.
At June 30, 2006, the carrying amount and the bank balance of the City's bank deposits was ($105,983),
and $348,086 respectively.
Investments
Certain assets are restricted by provisions of the revenue bond resolutions. The resolutions also describe
how these restricted assets may be deposited and invested. Restricted cash may only be deposited in state
or national banks meeting certain minimum net worth requirements or invested in securities representing
direct obligations of or obligations guaranteed by the U.S. government, agencies of the U.S. government,
any state within the territorial United States of America, repurchase agreements or interest bearing time
deposits with state or national banks meeting certain minimum net worth requirements, or certain other
investments.
The Utah Public Treasurers' Investment Fund (UPTIF) is an external deposit and investment pool wherein
governmental entities are able to pool the moneys from several entities to improve investment efficiency
and yield. These moneys are invested primarily in money market securities and contain no withdrawal
restrictions. As such, the moneys invested in this fund are not insured and are subject to the same market
risks as any similar investment in money market funds.
Interest Rate Risk — Interest rate risk is the risk that changes in interest rates will adversely affect the fair
value of an investment. The City's policy for managing its exposure to fair value loss arising from
increasing interest rates is to comply with the State's Money Management Act. Section 51-7-11 of the Act
requires that the remaining term to maturity of investments may not exceed the period of availability of
the funds to be invested.
Credit Risk — The City follows the requirements of the Utah Money Management act (Section 61, chapter
7 of the Utah Code) in handling its depository and investing transactions. City funds are deposited in
qualified depositories as defined by the Act. The Act also authorizes the City to invest in the Utah Public
Treasurers' Investment Fund (UPTIF), trade commercial paper, bankers' acceptances, repurchase
agreements, corporate bonds, restricted mutual funds, and obligation of government entities within the
State of Utah. The UPTIF is invested in accordance with the Act. The State Money Management Council
provides regulatory oversight for the UPTIF. The degree of risk of the UPTIF depends upon the
underlying portfolio. The act and Council rules govern the financial reporting requirements of qualified
depositories in which public funds may be deposited and prescribe the conditions under which the
designation of a depository shall remain in effect. If a qualified depository should become ineligible to
hold public funds, public treasurers are notified immediately. The City considers the actions of the
Council to be necessary and sufficient for adequate protection of its investments. The City has no
investment policy that would further limit its investment choices. The UPTIF is unrated.
23
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
2.C. REVENUE RESTRICTIONS
The City has various restrictions placed over certain revenue sources from state or local requirements. The
primary restricted revenue sources include:
Revenue Source
Sales Tax
Water and Sewer
B & C Road Funds
Federal & State Grants
Legal Restrictions of Use
See Note 1.E.
Debt Service and Utility Operations
Eligible B & C Roads
Specific to Grant
For the year ended June 30, 2006, the City complied, in all material respects, with these revenue
restrictions.
2.D. DEBT RESTRICTIONS AND COVENANTS
General Obligation Debt
No debt in excess of total revenue for the current year shall be created by any city unless the proposition
to create such debt shall have been submitted to a vote of qualified electors. Cities shall not contract for
debt to an amount exceeding four percent of the fair market value of taxable property in their jurisdictions.
For the year ended June 30, 2006, the City had $281,221 of outstanding general obligation debt.
Other Long-term Debt
Cities may incur a larger indebtedness for the purpose of supplying such city water, sewer, or electricity
when such public works are owned and controlled by the municipality. The additional indebtedness shall
not exceed four percent for first and second class cities and eight percent for third class cities. For the year
ended June 30, 2006, the City had $2,681,149 of such indebtedness.
Notes Payable
The various loan agreements relating to the notes payable issuances contain some restrictions or covenants
that are financial related. These include covenants such as debt service coverage requirement and required
reserve account balances. The following schedule presents a brief summary of the most significant
requirements and the Authority's level of compliance thereon as of June 30, 2006.
Requirement Level of Compliance
a. Note Payable Coverage:
1. Net water operating revenues (excluding depreciation) must equal 1.25 (1.20 for the
1996 Bonds) times the annual debt service plus the unfunded portion of the Debt Service
Reserve Requirement to be due and payable for the forthcoming year on the 1993 Water
Revenue Bonds, Series A & B and the 1996 Sewer Revenue Bond.
b. Reserve Account Requirement:
Various escrows are set up as reserves to make the annual debt payments. Minimum
balances are required to be kept in each of the escrows.
24
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
2.E. FUND EQUITY RESTRICTIONS
Deficit Prohibition
Utah Code 10-6-116(4) indicates that only the "fund balance in excess of 5% of total revenues of the
general fund may be utilized for budget purposes." The remaining 5% must be maintained as a minimum
fund balance. The maximum in the general fund may not exceed 18% of the total estimated revenue of the
general fund. (10-6-116(2)) The City was within the limitations allowed by law. The City also did not
have any deficit fund balances in any of its funds.
2.F. BUDGETARY BASIS OF ACCOUNTING
While the City is reporting financial position, results of operations and changes in fund balance on the
basis of generally accepted accounting principles (GAAP), the budgetary basis as provided by law is
based upon accounting for certain transactions on a basis of cash receipts, disbursements and
encumbrances. The Statement of Revenues, Expenditures and Changes in Fund Balances - Budget and
Actual presented for the general fund is presented on the budgetary basis to provide a meaningful
comparison of actual results with the budget.
NOTE 3. DETAIL NOTES ON TRANSACTION CLASSES/ACCOUNTS
The following notes present detail information to support the amounts reported in the basic financial
statements for its various assets, liabilities, equity, revenues, and expenditures/expenses.
3.A. CASH AND INVESTMENTS
As of June 30, 2006 the government had the following investments and maturities:
Fair Value
Investment Maturity in Years
Less
Than 1
1-5 6-10
Investments in Public
Treasurers' Investment Fund $4,126,251 $ 4,126,251 $
Total Fair Value $ 4,126,251 $ 4,126,251 $
More
Than 10
25
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Reconciliation to Government -wide Statement of Net Assets:
Investments $ 4,126,251
Cash on hand 650
Deposits (overdraft) (105,983)
Total $ 4,020,918
Government -wide Statement of Net Assets
Cash and Cash Equivalents $ 2,099,706
Restricted Cash and Cash Equivalents 1,921,212
$ 4,020,918
3.B. RESTRICTED ASSETS
The restricted assets as of June 30, 2006, are as follows:
Type of Restricted Asset Cash/Time Deposits Investments Accrued Int. Total
Business -Type Activities:
Bond Requirements $ 674,723 $ - $ - $ 674,723
Customer Deposits 6,260 6,260
Impact Fees 817,642 - - 817,642
Total 1,498,625 - - 1,498,625
Governmental Activities:
Capital projects 151,219 - - 151,219
Class "C" Roads 271,840 - - 271,840
Total
423,059 - - 423,059
Grand Totals $ 1,921,684 $ - $ - $ 1,921,684
3.C. ACCOUNTS RECEIVABLE
Accounts receivable for the business -type activities consist of utilities receivable from the water and sewer
utilities. Accounts receivable of the governmental activities consist of sales tax, garbage utilities, franchise
taxes, and business licenses. Receivables detail at June 30, 2006, is as follows:
Governmental Activities Business -Type Activities Total
Accounts Receivable $ 442,046 $ 112,426 $ 554,472
Allowance for
Doubtful Accounts - (2,955) (2,955)
Net Accounts Receivable $ 442,046 $ 109,471 $ 551,517
26
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
3.D. CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2006, was as follows:
Governmental Activities:
Land
Buildings
Improvements Other Than Bldgs
Machinery & Equipment
Autos & Trucks
Office Equipment
Infrastructure
Construction in Process
Totals at historical cost
Less Accum. Depreciation
Buildings
Improvements Other Than Bldgs
Machinery & Equipment
Autos & Trucks
Office Equipment
Infrastructure
Total Accum. Depreciation
Governmental Activities
capital assets, net
Business -type activities:
Land
Water Shares
Sewage Plant
Improvements
Machinery & Equipment
Autos & Trucks
Office Furniture
Construction in Process
Totals at historical cost
Less Accum. Depreciation
Sewage Plant
Improvements
Machinery & Equipment
Autos & Trucks
Office Furniture
Total Accum. Depreciaiton
Business -type activities
capital assets, net
Balance at
July 1, 2005
$ 371,977
4,032,314
1,406,004
1,081,805
956,997
382,216
1,691,522
9,922,835
(245,034)
(246,503)
(235,302)
(280,516)
(5,756)
(139,308)
(1,152,419)
$ 8,770,416
$ 244,935
18,000
1,426,706
9,043,266
484,710
164,714
13,088
11,395,419
(1,147,311)
(3,203,475)
(330,279)
(136,357)
(12,220)
(4,829,642)
$ 6,565,777
Additions
$
740,107
105,470
2,005
179,246
11,377
249,675
1,287,880
(322,757)
(129,631)
(38,607)
(80,634)
(2,014)
(101,018)
(674,661)
$ 613,219
$
1,079,401
5,607
1,085,008
(34,753)
(271,139)
(34,069)
(12,097)
(320)
(352,378)
Disposals
Balance at
June 30, 2006
$ - $
(46,670)
(46,670)
37,483
371,977
4,725,751
1,511,474
1,083,810
1,136,243
393,593
1,941,197
11,164,045
(530,308)
(376,134)
(273,909)
(361,150)
(7,770)
(240,326)
37,483 (1,789,597)
$ (9,187) $ 9,374,448
$ $ 244,935
- 18,000
- 1,426,706
10,122,667
- 490,317
- 164,714
13,088
$ 732,630 $
12,480,427
(1,182,064)
(3,474,614)
(364,348)
(148,454)
(12,540)
(5,182,020)
$ 7,298,407
27
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Depreciation expense was charged to governmental activities as follows:
General Government $ 82,354
Public Safety 46,424
Highways and Streets 188,500
Parks, Recreation and Public Property 45,213
Total depreciation expense $362,491
Depreciation on capital assets acquired under a capital lease:
Equipment $ 219,975
Accumulated Amortization 54,786
Net Book Value $ 165,189
Amortization of capital leases is included in depreciation expense.
3.E. ACCOUNTS PAYABLE
Payables in the general fund and non -major governmental funds are composed of
payables that have to do with the building inspector and a parking escrow.
3.F. LONG-TERM DEBT
The reporting entity's long-term debt is segregated between the amounts to be repaid
from governmental activities and amounts to be repaid from business -type activities.
28
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Governmental Activities:
As of June 30, 2006, the City had $2,199,693 governmental long-term debt detailed as
follows:
Compensated Absences $ 215,103
Sales Tax Revenue Bond 1,928,000
Capital Leases
2005 Ford Motor Credit
Original Amt $24,448, Pmts $8,760 8,447
2006 F353 - Wells Fargo
Original Amt $27,485, Pmts $9,886 18,672
2 - 2006 Ford F150 Trucks
Original Amt $44,207, Pmts $15,960 29,471
Total Governmental Long -Term Debt $ 2,199,693
Business -type Activities:
As of June 30, 2006, the long-term debt payable from proprietary fund resources
consisted of the following:
Water Revenue Bonds:
Water Revenue Bonds, Series A, Dated 1993
0%, (original amount $765,000)
$ 83,240
Water Revenue Bonds Series A, Dated 1993
0%, (Original amount $764,000) 110,240
Sewer Revenue Bonds Dated 1996
4.5%, (Original amount $1,821,000) 208,669
Total Business -type debt $ 402,149
29
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Changes in Long-term Debt
The following is a summary of changes in long-term debt for the year ended June 30,
2006:
Type of Debt
Governmental Activities:
Compensated Absences
Capital Leases Payable
Sales Tax Revenue Bonds
Due Within One Year
Balance
July 1, 2005
$ 215,841
33,084
1,990,000
92,296
Total Governmental Debt $ 2,331,221
Business -type Activities:
Compensated Absences $ 21,043
Revenue Bonds Payable 691,149
Due Within One Year 279,000
Total Enterprise Fund Debt $ 991,192
Additions
$
71,692
17,891
$ 89,583
$
10,000
Balance
Deductions June 30, 2006
$ (738)
(48,187)
(62,000)
$ 215,103
56,589
1,928,000
110,187
$ (110,925) $ 2,309,879
$ -
(289,000)
$ 21,043
402,149
289,000
$ 10,000 $ (289,000) $ 712,192
The revenue bonds are payable only from the net revenues of the water and sewer systems,
as defined in the bond ordinances. The ordinances further provide that the City establish
certain accounts and reserves for bond payment and that all revenues of the system are to
be used for operation and maintenance costs of the systems, principal and interest on the
bonds, and establishment of the defined debt repayment reserves and capital facilities
replacement account.
Annual Debt Service Requirements
The annual debt service requirements to maturity, including principal and interest, for
long-term debt as of June 30, 2006, are as follows:
Capital Leases:
June 30
2007
2008
2009
2010
2011
Thereafter
Governmental
Activities
$ 51,798
34,605
25,846
Total Commitment 112,249
Less Interest Portion 7,472
Net Capital Lease $ 104,777
30
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Bonds and Notes Payable:
Business -type Activities
Year Ending
June 30
2007
2008
2009
2010
2011-2015
2016-2020
2021-2025
2026-2030
Total
Principal
$ 289,000
287,669
81,240
33,240
$ 691,149
Interest
$ 19,440
9,945
Governmental Activities
Principal
$ 62,000
63,000
65,000
66,000
68,000
366,000
415,000
468,000
417,000
Interest
$ 49,750
48,200
46,625
45,000
43,350
190,400
142,250
87,800
26,400
$ 29,385 $ 1,990,000 $ 679,775
3.G. INTER -FUND TRANSACTIONS AND BALANCES
Operating Transfers
The City had the following inter -fund transactions for the year ended June 30, 2006:
FUND
General Fund
Recreation
Community Development
Capital Projects
Milcreek Project Fund
TOTALS
TRANSFERS OUT TRANSFERS IN
$ 1,245,378 $
79,299
50,000
1,106,079
10,000
$ 1,245,378 $ 1,245,378
31
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Due to/from other funds
The City had the following inter -fund transactions for the year ended June 30, 2006:
Fund
Water Fund
Sewer Fund
3.H. FUND EQUITY
Restricted Fund Equity
Due From
Other Funds
833,132
Due To
Other Funds
833,132
$ 833,132 $
Net Assets
Invested in Capital Assets, Net of Related Debt
Restricted for:
Class "C" Roads
Bond Requirements
Impact Fees
Capital Projects
Unrestricted (Deficit)
833,132
Government Business -Type
Activities Activites
Totals
$ 7,384,452 $ 6,607,258 $ 13,991,710
271,840
151,219
2,558,803
674,723
817,642
324,806
271,840
674,723
817,642
151,219
2,883,609
Total Net Assets $ 10,366,314 $ 8,424,429 $ 18,790,743
32
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
NOTE 4. OTHER NOTES
4A. EMPLOYEE PENSION AND OTHER BENEFIT PLANS
The City participates in the following employee pension systems:
Local Governmental - Cost Sharing Defined Benefits Pension Plans
Plan Description
The City of Moab contributes to the Local Governmental Contributory Retirement
System and Local Governmental Noncontributory Retirement System, Public Safety
Retirement System for employers with Social Security coverage, cost -sharing multiple -
employer defined benefit pensions plans administered by the Utah Retirement Systems
(Systems). Utah Retirement Systems provide refunds, retirement benefits, annual cost of
living adjustments, and death benefits to plan members and beneficiaries in accordance
with retirement statutes.
The Systems are established and governed by the respective sections of Chapter 49 of the
Utah Code Annotated 1953, as amended. The Utah State Retirement Office Act, in
Chapter 49, provides for the administration of the Utah Retirement Systems and Plans
under the direction of the Utah State Retirement 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 Local Governmental
Contributory Retirement System, Local Governmental Noncontributory Retirement
System, and Public Safety Retirement System for employers with Social Security
coverage. 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.
Funding Policy
Plan members in the Local Governmental Contributory Retirement System are required to
contribute 1.30% of their annual covered salary (all or part may be paid by the employer
for the employee) and Moab City is required to contribute 7.08% of their annual covered
salary. In the Local Governmental Noncontributory Retirement System, Moab City is
required to contribute 11.09% of their annual covered salary. In the Public Safety
Noncontributory Retirement System for employers with Social Security coverage, Moab
City is required to contribute 19.08% of their annual covered salary. The contribution
rates are the actuarially determined rates. The contribution requirements of the Systems
are authorized by statute and specified by the Board.
33
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
Moab City's contributions to the various systems for the years ending June 30, 2006, 2005,
and 2004 were as follows:
Employer Paid Total
Contributory System: for employee Employer Employer
Local Government Division Contributions Contributions Contributions
2006 $ 1,800 $ 2,711 $ 4,511
2005 1,741 2,623 4,364
2004 1,700 2,029 3,729
Noncontributory System:
Local Government Division
2005
2004
2003
$
$ 152,457 $ 152,457
139,737 139,737
119,456 119,456
Public Safety System:
Other Division A Noncontributory
2005 $ $ 73,063 $ 73,063
2004 - 81,679 81,679
2003 - 69,466 69,466
The contributions were equal to the required contributions for each year.
457 Deferred Compensation Plan
The Utah Retirement Systems (URS) have adopted Governmental Accounting Standards
Board Statement 32, "Accounting and Financial Reporting for Internal Revenue Code
Section 457 Deferred Compensation Plans." This resulted in reporting the 457 Plans as a
"Trust Fund" of URS rather than previously reported as an "Agency Fund" of Moab City.
The assets and income of the 457 Plan are held in trust for the exclusive benefit of the
participants or their beneficiaries and are not the assets of the employer.
4.B. 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; injuries to employees; and natural disasters.
The City has purchased comprehensive general liability insurance through the Utah Local
Governments' Trust. The City pays premiums to the Trust for its general insurance
coverage, automobile liability, and personal injury protection. The Trust is self
sustaining through member premiums. The City is subject to a minimal deductible for
claims.
34
CITY OF MOAB, UTAH
NOTES TO BASIC FINANCIAL STATEMENTS
FOR THE YEAR ENDED JUNE 30, 2006
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 $295,000 for the Klondike Landfill and $20,000 for the Moab Landfill.
35
SUPPLEMENTARY INFORMATION
City of Moab
Combining Balance Sheet for Nonmajor Funds
June 30, 2006
Special Revenue Funds Total
Arts and Nonmajor
Recreation Recreation Youth City Governmental
Fund Center Council Funds
ASSETS
Cash and cash equivalents $ 59,441 $ 2,018 $ 2,629 $ 64,088
Total assets $ 59,441 $ 2,018 $ 2,629 $ 64,088
LIABILITIES AND FUND BALANCES
Liabilities:
Total liabilities
FUND BALANCES
Fund balances reserved for:
Recreation 59,441 2,018 61,459
Youth City Council 2,629 2,629
Total fund balances 59,441 2,018 2,629 64,088
Total Liabilities and fund balance $ 59,441 $ 2,018 $ 2,629 $ 64,088
The Notes to the Financial Statements are an integral part of this statement. 36
City of Moab
Combining Statement of Revenues, Expenditures, and Changes in Fund Balances
Non -major Governmental Funds
For the Year Ended June 30, 2006
Special Revenue Funds Total
Arts and Nonmajor
Recreation Recreation Youth City Governmental
Fund Center Council Funds
REVENUES
Intergovernmental revenues $ 64,826 $ - $ $ 64,826
Charges for service 150,924 - 150,924
Interest income - - 145 145
Total 215,750 - 145 215,895
EXPENDITURES
Parks, recreation and public property 255,589 - 255,589
Total 255,589 - 255,589
Excess of revenues over
(under) expenditures (39,839) - 145 (39,694)
OTHER FINANCING SOURCES (USES)
Transfers in
Total other financing sources (uses)
79,299 - 79,299
79,299 79,299
Excess of revenues and other sources
over (under) expenditures and other uses 39,460 - 145 39,605
Fund balances - beginning
Fund balances - ending
19,981 2,018 2,484 24,483
$ 59,441 $ 2,018 $ 2,629 $ 64,088
The Notes to the Financial Statements are an integral part of this statement. 37