Notes to Financial Statements

regarding oversight of the plan and the investment options made available to participants. The assets held in the City’s deferred compensation accounts are not presented in the City’s annual comprehensive financial report.

Voluntary Employees’ Beneficiary Association

The City has a Voluntary Employees’ Beneficiary Association Plan (VEBA) for all regular full and part-time employees working 20 hours or more per week. The City makes annual contributions to a medical trust established under IRS code section 501(c)(9) on behalf of the participants utilizing existing funding sources. Individual accounts are established for the benefit of and are the property of each participant. Each participant is responsible for selecting the investment options for his/her account. Upon separation from service, the employee may use the accumulated balance for IRS allowable medical expenses for themselves and qualified dependents. The City has no ongoing responsibility for the trust and is not included in these financial statements. The City contributed $1,300 during the year ended September 30, 2022.

Pension

In the government-wide and proprietary funds statement of net position, liabilities are recognized for the City’s proportionate share of the Public Employee Retirement System of Idaho (PERSI) net pension liability. For purposes of measuring the net pension liability, deferred outflows/inflows of resources, and pension expense, information about the fiduciary net position have been determined on the same basis as they are reported by PERSI. For this purpose, plan contributions are recognized as of employer payroll paid dates and benefit payments and refunds of employee contributions are recognized when due and payable in accordance with the benefit terms. Investments are reported at fair value.

Opeb

In the government-wide and proprietary funds statement of net position, liabilities are recognized for the City’s post retirement benefits other than pensions (OPEB). The city’s OPEB is an uninsured, defined benefit plan used to provide OPEB to only its employees. Assets used to pay for these benefits are not administered through a qualifying trust, therefore total OPEB liability, deferred outflows/inflows of resources, and OPEB expense are recorded in these financial statements.

Net Position

In the government-wide and proprietary fund financial statements net position is categorized as net investments in capital assets, restricted, and unrestricted. Net investments in capital assets include capital assets and right to use assets, net of related debt and deferred amount on refunding. Restricted net position indicates amounts that have constraints on their use externally imposed by creditors, through debt covenants, by grantors, or by law. Restricted assets are being reported for: capital projects, debt service and special revenue funds. The government-wide statement of net position reports $24,322 of governmental activities restricted net position.

Fund Balance

In the governmental fund financial statements, the City reports fund balance as either non-spendable or spendable components. Nonspendable fund balance represents resources that cannot be spent due to their form or legally or contractually required to be maintained intact.

Governmental fund balance that is available for spending is classified as follows:

• Restricted fund balance – amounts that have constraints on their use externally imposed by creditors, through debt covenants, by grantors, or by law.

• Committed fund balance – amounts constrained for a specific purpose imposed by a formal action by City Council, the highest level of decision making authority. A resolution approved by Council is the formal action that is required to establish, modify, or rescind a commitment of fund balance.

• Assigned fund balance – amounts that are intended to be used for specific purposes that are not restricted or committed. City Council vests with the Chief Financial Officer of the Department of Finance