Comprehensive Annual Financial Report (CAFR) and Auditor's Communication Copyrighted
February 5, 2018
City of Dubuque Action Items # 2.
ITEM TITLE: Comprehensive Annual Financial Report (CAFR) and
Auditor's Communication for Fiscal Year Ended June 30,
2017
SUMMARY: City Manager transmitting the Fiscal Year 2017
Comprehensive Financial Report(CAFR), Auditor's
Communication with Those Charged with Governance
Letter, along with the City Finance staff's responses to
Auditor's findings.
Finance Director Jean Nachtman will make a brief
verbal presentation.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Presentation
ATTACHMENTS:
Description Type
Submission of CAFR-NNM Memo City Manager Memo
CAFR Staff Memo Staff Memo
CAFRAuditor's Communication Supporting Documentation
CAFR Responses to Auditor's Findings Supporting Documentation
CAFR Final Fiscal Year 2017 Supporting Documentation
THE CITY OF Dubuque
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2017 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance and City Responses to Findings
DATE: January 29, 2018
Finance Director Jean Nachtman is transmitting the Fiscal Year 2017 Comprehensive
Financial Report (CAFR), Auditor's Communication with Those Charged with
Governance Letter, along with the City Finance staff's responses to auditor's findings.
The City's independent auditor issued an unmodified opinion on the financial
statements.
Jean Nachtman will make a brief presentation to the City Council and Eide Bailly CPA
Audit Partner Brian Unsen will be available for any questions.
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Mic ael C. Van Milligen �� �
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Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
THE CITY OF Dubuque
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Mas terpiece on the Mississippi Zoo,.2012.Zo13
TO: Michael C. Van Milligen, City Manager
FROM: Jean Nachtman, Finance Director
SUBJECT: Submission of Fiscal Year Ended June 30, 2017 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance and City Responses to Findings
DATE: January 25, 2018
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2017 CAFR audited by
Eide Bailly, LLP, Auditor's Communication with Those Charged with Governance Letter
along with the City Finance staff's responses to auditor's findings. The City's
independent auditor issued an unmodified opinion on the financial statements.
BACKGROUND
lowa state code requires an annual audit by independent certified public accountants or
the State Auditor. In addition to meeting the requirements set forth in state statues, the
audit also was designed to meet the requirements of an annual single audit in
conformity with the Title 2 U.S. Code of Federal Regulations (CFR) Part 200 Uniform
Administrative Requirements, Cost Princip/es, and Audit Requirements for Federal
Award.
This Comprehensive Annual Financial Report is in conformance with the standards set
by Title 2 U.S. Code of Federal Regulations (CFR) Part 200. This federal regulation
mandates audit standards for federal programs.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
and fiduciary fund financial statements. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting.
Separate financial statements are required for Dubuque Metropolitan Area Solid Waste
Agency, Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors
Bureau (CVB) and have been received. The financial information for these entities is
included in the City of Dubuque CAFR.
AUDITOR'S COMMUNICATION with THOSE CHARGED with GOVERNANCE
Included is a separate letter from Eide Bailly, LLP. The letter contains audit information
required by auditing standards to be communicated to the Mayor and City Council.
ACTION STEP
It is recommended that the City Council receives and files the Fiscal Year 2016 reports
identified above and receives and files this communication and related enclosures.
Copies of the financial statements for the Dubuque Metropolitan Area Solid Waste
Agency are available in the Finance Department if desired by Council members.
I will make a brief presentation at the City Council meeting and Brian Unsen, audit
partner from Eide Bailly LLC, will be available for any questions. Finance staff will also
be attending the meeting.
JN/eml
Enclosures: Fiscal Year 2017 CAFR
Auditor's Communication with Those Charged with Governance Letter
Responses to Auditor's Findings
EideBailly
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December 21, 2017
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the financial statements of City of Dubuque, Iowa(City) as of and far the year ended June 30,
2017, and have issued our report thereon dated December 21, 2017. We did not audit the financial statements
of Dubuque Initiatives and Subsidiaries (presented as a discretely presented component unit). Those financial
statements were audited by other auditors whose report thereon has been furnished to use, and our opinion,
insofar as it relates to the amounts included for Dubuque Initiative and Subsidiary is based solely on the reports
of the other auditors. Professional standards require that we advise you of the following matters relating to our
audit.
Our ResponsibiliTy in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and GovernmentAuditing Standards and our Compliance Audit under the Uniform Guidance
As communicated in our letter dated May 19, 2017, our responsibility, as described by professional standards,
is to forxn and express an opinion about whether the financial statements that have been prepared by
management with your oversight are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the United States of America. Our audit of the financial statements does not
relieve you or management of its respective responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of City solely far the purpose of
determining our audit procedures and not to provide any assurance concerning such internal control.
We are also responsible for communicating significant matters related to the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not
required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding internal controls during our audit in our Independent Auditor's
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit
of Financial Statements Performed in Accordance with GavernmentAuditing Standards dated December 21,
2017 and our Independent Auditor's Report on Compliance with Each Major Federal Program and Report on
Internal control Over Compliance Required by Uniforxn Guidance date December 21, 2017.
Planned Scope and Timing ofthe Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Whaf inspires you,inspires us. eidebailly.mm 1
375 E.Horsetooth Rd.Bldg.4200 Fort Collins,CO 805253198 TF 800.4082929 T 970223.8825 F 970223.OS V EOE
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firxn, as appropriate, our firxn, and other firxns utilized in the engagement,
if applicable, have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the EntiTy's Significant Accounting Practices
SignificantAccounfing Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by City is included in Note 1 to the financial statements. During the
year ended June 30, 2017, the City adopted GASB 77, TaxAbatementDisclosures. No other significant
accounting policies were adopted, and the application of other existing policies was not changed during the
year ended June 30, 2017. No matters have come to our attention that would require us, under professional
standards, to inform you about(1)the methods used to account for significant unusual transactions and(2)the
effect of significant accounting policies in controversial or emerging areas for which there is a lack of
authoritative guidance or consensus.
SignificantAccounfing Esfimates
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's current judgments. Those judgments are normally based on knowledge and experience about
past and current events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility that future
events affecting them may differ markedly from managemenYs current judgments.
The most sensitive accounting esrimates affecring the financial statements are health insurance and worker's
compensation liabilities, other postemployment benefits liability, and net pension liability.
Management's estimate of incurred but not reported health insurance and workers' compensation
liabilities are based on third-party administrator's calculations and estimates. We evaluated the key
factors and assumptions used to develop incurred by not reported liabilities in determining that they are
reasonable in relation to the financial statements taken as a whole.
Management's estimate of other postemployment benefits liability is based on a calculation of actuarially
determined contributions for health insurance benefits. We evaluated the key factors and assumptions
used to develop other postemployment benefits liability in determining that it is reasonable in relation to
the financial statements taken as a whole.
ManagemenYs estimate of the net pension liability, pension related deferred outflows of resources and
deferred inflows of resources, and pension expense are based on plan level actuarial reports, allocated to
the City using annual employer contributions. We evaluated the key factors and assumptions used to
develop the pension related balances in deterxnining that they are reasonable in relation to the financial
statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of their
significance to financial statement users. The most sensitive disclosures affecting the City's financial statements
relate to net pension liability.
2
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that we believe are trivial, and communicate them to the appropriate level of management. The
following misstatements, one of which is material to the City's financial statements, were detected as a result
of audit procedures and were corrected by management:
Governmental/
Fund Business-type
Statements Activities
Sewage Fund
To reclass net investment in capital
assets to unrestricted net position $ 11,775,033 $ 11,775,033
Govermental Activities
To reclass net investment in capital assets
to unrestricted net position 600,000
General Fund
To reclass accounts receivable to cash 374,054 374,054
To reclass revenue not considered available to deferred inflows 81,523
S ection V III(nonmaj or fund)
To reclass restricted fund balance
to nonspendable fund balance. 370,854
Street Construction Fund(nonmajor fund)
To reclass accounts receivable to cash 224,432 224,432
Sales Tax Construction Fund(nonmajor fund)
To reclass accounts receivable to cash 149,622 149,622
The effect of the misstatements above had 81,523 decrease in fund balance and zero effect on net position. There
were no uncorrected financial misstatements identified.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether
or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter, which could
be significant to the financial statements ar the auditor's repart. No such disagreements arose during the course
of the audit.
3
Representations Requested from Management
We have requested certain written representations from managementthat are included in the management
representation letter dated December 21, 2017
ManagemenNs Consultations with Other Accountants
In some cases,management may decide W consultwith other accountants about auditing and accounting
matters. Management infortned us that, and W our Imowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Othu Significant Matters, NSndings, or Issues
In[he normal course of our professional association with[he City of Dubuque,we generally discuss a variety of
matters, including the application of accounting principles and auditing standards, business conditions affecting
the entity, and business plans and strategies thatmay affectthe risks ofmaterial misstatement. None ofthe
matters discussed resulted in a condition W our retention as City of Dubuque's audiWrs.
This report is intended solely for the information and use of the Mayor, City Council, and management of City of
Dubuque, Iowa, and is not intended W be and should notbe,used by anyone other than these specified parties.
Sincerely,
EIDE BAILLY LLP
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Fort Collins, Colorado
4
Dubuque
THE CITY OP �
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TO: Michael C. Van Milligen, City Manager
FROM: Jean Nachtman, Finance Diredor
SUBJECT: Responses to Auditor's Findings
DATE: January 25, 2018
INTRODUCTION
The Auditor's Communication with Those Charged with Governance letter was issued
by Eide Bailly LLP on December 21, 2017 and is hereby submitted. The letter is
required by AU 260 and was formally referred to as the management letter.
BACKGROUND
A separate sedion in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2017 details specifc fndings. Pages 192-198 of the report provide this information
and city responses. In addition to the comments in the report, the Auditor's
Communication with Those Charged with Governance letter dated December 21, 2017,
was issued which includes more general comments relative to the audit.
DISCUSSION
Most of the information in the Auditor's Communication with Those Charged with
Governance does not require a response.
2017-A Ma[erial Audi[ Adjus[men[s (Page 192 in CAFR)
Finding: Reclass $117M of fund balance from net investment in capital assets to
unrestricted net position in the sewer fund.
Corredion: The total net position in the sewer fund was corred as a whole,
however, a formula error in the fund balance workpaper resulted in incorredly
reporting net position balances between the net investment in capital assets and
the unrestricted categories. Additional checks and balances have been put in
place in the fund balance workpaper to prevent this from happening in the future.
1
Finding: Reclass $600,000 net investment in capital assets to unrestricted net
position
Correction: The total net position in the governmental funds was correct as a
whole, however, a formula error in the fund balance workpaper resulted in
incorrectly reporting net position balances between the net investment in capital
assets and the unrestricted categories. Additional checks and balances have
been put in place in the fund balance workpaper to prevent this from happening
in the future.
Finding: Reclass $374,054 of accounts receivable to cash.
Correction: This is in relation to Local Option Sales Tax dollars. Depending on
how the end of the year falls determines when we receive the funds. It causes
budgeting issues if there are more than 12 payments receipted in one fiscal year;
therefore, it was entered as an account receivable. Notes have been made on
the accounts receivable workpaper to move this to cash for CAFR purposes,
even if is not receipted in before end of fiscal year.
Finding: Reclass $81 ,523 of revenue to deferred inflows.
Correction: This is in relation to a receivable that was not received within 60 days
of fiscal year end. These funds cannot be considered as revenue and instead is
considered a deferred revenue.
Finding: Reclass $370,854 from restricted fund balance to nonspendable fund
balance in the Section VIII fund.
Correction: This is in relation to a prepaid in the Section 8 fund that was
classified in the restricted category instead of the nonspendable fund balance
category. We have since received clarification from HUD regarding timing of
HUD payments when it falls at the end of the month, so this should no longer be
an issue in future years.
Finding: Reclass $224,432 in the Street Construction fund from accounts
receivable to cash.
Correction: This is in relation to Local Option Sales Tax dollars. Depending on
how the end of the year falls determines when we receive the funds. It causes
budgeting issues if there are more than 12 payments receipted in one fiscal year;
therefore, it was entered as an account receivable. Notes have been made on
the accounts receivable workpaper to move this to cash for CAFR purposes,
even if is not receipted in before end of fiscal year.
Finding: Reclass $149,622 in the Sales Tax Construction fund from accounts
receivable to cash.
Correction: This is in relation to Local Option Sales Tax dollars. Depending on
how the end of the year falls determines when we receive the funds. It causes
budgeting issues if there are more than 12 payments receipted in one fiscal year;
2
therefore, it was entered as an account receivable. Notes have been made on
the accounts receivable workpaper to move this to cash for CAFR purposes,
even if is not receipted in before end of fiscal year.
As noted by Eide Bailly, the effect of the misstatements above had a $81 ,523 decrease
in fund balance and zero effect on net position. There were no uncorrected financial
misstatements identified.
2017-001 US Department of Housing and Urban Development Lead-Based
Paint Hazard Control, Procurement and Suspension and Debarment, Significant
Deficiency in Internal Control over Compliance (Page 193 in CAFR)
Finding: Two contractors out of the twelve tested did not have documentation in
their file to support that a check had been performed to support that the
contractor was not suspended or debarred. Nor was there documentation that
the City performed a lead abatement certification check to determine if the
contractor was certified.
Correction: The City's Administrative Policy 3.15 Grant Administration and
Reporting updated June 2017 states that purchases funded by federal money
must include proof that the awarded vendor is not suspended or disbarred, and
that proof must be kept in the grant file. Going forward, on any new project, a
copy of the lead abatement contractor and worker certifications will be copied
and placed in the physical project folder or electronically saved and placed in the
project folder of that particular project. A line item will be added to Housing's file
folder checklist for check off when each of these steps have been completed.
The two contractor's files have been updated with appropriate documentation.
2017-002 US Department of Housing and Urban Development Lead-Based
Paint Hazard Control, Reporting and Matching, Significant Deficiency in Internal
Control over Compliance (Page 194 in CAFR)
Finding: Three out of eight reports submitted for reimbursement indicted that no
approval of the report had occurred.
Correction: A new approval process has been put in place for this grant. The co-
director of the Lead and Healthy Homes Program is now required to review and
sign each quarterly report that is prepared and submitted to HUD. A thorough
due diligence must be completed by a Co-Director of the Lead and Healthy
Homes Program expenses and revenues. The Co-Director must then sign off on
all completed quarterly reports being submitted to HUD. The three reports have
been approved retroactively.
3
2017-003 US Department of Housing and Urban Development Lead-Based
Paint Hazard Control, Allowable Costs, Significant Deficiency in Internal Control
over Compliance (Page 195 in CAFR)
Item: Eide Bailly LLP, through its audit procedures, noted one expenditure out of
sixty tested of which was inappropriately submitted for reimbursement.
Correction: There was a $10 mis-calculation of the late fee on a contracted
monthly rental relocation payment. Going forward, the property owner must
submit monthly invoices to be paid showing the exact amount of rent. The City
will no longer pay from the lease agreement. This submitted invoice will be the
trigger for the monthly rent and thus eliminate the City incurring a late fee.
2017-IA-A Certified Budget (Page 197 in CAFR)
Item: The City went over budget in expenditures in Community & Economic
Development and Debt Service functions.
Correction: Any amount over program budget is considered an audit finding.
The overbudget amount in the debt service program was a result of a principal
prepayment on June 23, 2017, for an lowa Finance Authority (IFA) pass through
loan. The prepayment amount was then forwarded IFA I the same fiscal year.
There was no time to amend the budget. Communication has been established
to allow for budget amendments in the future for any anticipated principal
prepayments. The Community & Economic Development program overbudget
was a result of the July section 8 voucher payments being processed June. July
1 , 2017, fell on a Saturday. Housing was under the impression that if the 1 S� fell
on a non-business day, that voucher payments must be made the prior business
day. The City has since received clarification from HUD that payments can be
made the 1 S� business day of the month, therefore keeping the expense in the
correct month and fiscal year.
4
COMPREHENSIVE ANNUA� THECITYOF . ��
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DUBUQUE R.
About the Cover.
The Dubuque Regional Airport Commercial Passenger
Terminal opened to the public on June 9, 2016. The Federal
Aviation Administration provided 85°k of the funding for this
project with the remaining 15°k being provided by the lowa
Department of Transportation, the City of Dubuque, airline
passenger facility charges, rental car customer facility
charges and public donations.
This project replaced the original terminal built in 1948 with a
state of the art gateway to the Dubuque area. This building
achieved Silver LEED certification by following the City of
Dubuque's emphasis on sustainability with several features
such as, light pollution reduction, water-efficient landscaping,
water use reduction, use of recycled materials, emphasis on
regional materials and the use of total energy recovery.
This facility has enhanced the Airport's mission of providing
quality, viable and competitive airport services while
promoting sustainability and economic growth for the
Dubuque area.
Photo courtesy of:
Straka Johnson Architects P.C.
Cover design by:
Kelli Buchenau
Copy provided by:
Cheryl Sheldon
Comprehensive Annual Financial Report
For The Fiscal Year Ended June 30, 2017
City of Dubuque, Iowa
Prepared by:
Department of Finance
THIS PAGE IS INTENTIONALLY LEFT BLANI�
Introductory Section
June 30, 2017
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANI�
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
E�ibit Page
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-12
City Organizational Chart 13
Officials 14
Certificate of Achievement for Excellence in Financial Reporing 15
FINANCIAL SECTION
Independent Auditor's Report 19-21
ManagemenYs Discussion and Analysis 23-32
Basic Financial Statements
Govemment-wide Financial Statements
Statement of Net Position 1 34-35
Statement of Activities 2 36
Fund Financial Statements
BalanceSheet—GovemmentalFunds 3 38-39
Reconciliation of the Govemmental Funds Balance Sheet to the
Statement of Net Position 3-1 41
Statement of Revenues,Expenditures, and Changes in Fund
Balances—Govemmental Funds 4 42-43
Reconciliation of the Govemmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4-1 45
Statement of Net Position—Proprietary Funds 5 46-49
Statement of Revenues,Expenses, and Changes in Fund Net Position
—Proprietary Funds 6 50-51
Statement of Cash Flows—Proprietary Funds 7 52-55
Statement of Fiduciary Assets and Liabilities—Agency Funds 8 56
Notes to Financial Statements 57-106
Requued Supplementary Information
Schedule of Receipts,Expenditures, and Changes in Balances—Budget
and Actual(Budgetary Basis)—Govemmental Funds and Enterprise Funds 108
Note to Required Supplementary Information—Budgetary Reporting 109
Schedule of the City's Proportionate Share of Net Pension Liability— Iowa
Employees'Retirement System 110
Schedule of City's Conhibution—Iowa Employees'Retirement System 111
Notes to Requued Supplementary Information— NetPension Liability IPERS 112
Schedule of the City's Proportionate Share of Net Pension Liability— Municipal
Fire and Police Retuement System of Iowa 113
Schedule of City's Contributions—Municipal Fue and Police Retirement System
of Iowa 114
Notes to Requued Supplementary Information— NetPension Liability MFPRSI 115
Schedule of Funding Progress for the Retiree Benefit Plan 116
Supplementary Information
Combining Fund Statements
Combining Balance Sheet—Nonmaj or Govemmental Funds A-1 120-122
Combining Statement of Revenues,Eapenditures, and Changes in
Fund Balances—Nonmajor Govemmental Funds A-2 124-126
Combining Statement of Net Position—Nonmajor Enterprise Funds B-1 128
Combining Statement of Revenues,Eapenses, and Changes in Fund Net
Position—Nonmaj or Enterprise Funds B-2 129
1
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
FINANCIAL SECTION(continued) Exhibit Paee
Combining Statement of Cash Flows—Nonmajor Enterprise Funds B-3 130-131
Combining Statement of Net Position—Intemal Service Funds G 1 134-135
Combining Statement of Revenues,Eapenses, and Changes in Fund Net
Position(Deficit)—Internal Service Funds G2 136-137
Combining Statement of Cash Flows—Intemal Service Funds G3 138-139
Combining Statement of Changes in Assets and Liabilities— Agency Funds D-1 141
STATISTICAL SECTION(Unaudited) Table Paae
Statistical Section Contents 145
Financial Trends
Net Position by Component 1 146-147
Changes in Net Position 2 148-151
Fund Balances of Govemmental Funds 3 152-153
Changes in Fund Balances of Govemmental Funds 4 154-155
Revenue Capacity
Ta�ble and Assessed Value of Property 5 156
Property Tax Rates—Direct and Overlapping Govemments 6 157
Principal Property Ta�payers 7 158
Property Tax Levies and Collections 8 159
Debt Capacity
Ratios of Outstanding Debt by Type 9 160-161
Ratios of General Bonded Debt Outstanding 10 162
Direct and Overlapping Govemmental Activities Debt 11 163
Legal Debt Margin Information 12 164-165
Revenue DebtCoverage 13 166
Water and Sewer ReceiptHistory 14 167
Water Meters by Rate Class 15 168
Largest Water and Sewer Customers 16 169
Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining 17 170
Demographic and Economic Information
Demographic and Economic Statistics 18 171
Principal Employers 19 173
Operating Information
Full-Time Equivalent City Government Employees by
Function/Deparhnent 20 174-175
Operating Indicators by Function/Program 21 176-177
Capital Asset Statistics by Function 22 178-179
Retail 23 180
COMPLIANCE SECTION
Independent Auditor's Report on Internal Control over Financial Reporting and
on Compliance and other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovemmentAuditing Standards 183-184
Independent Auditor's Report on Compliance with Requirements for Each Major
Program and on Intemal Control Over Compliance Required by The Uniform Guidance 185-186
Schedule of E�penditures of Federal Awards 187-189
Notes to the Schedule of Expenditures of Federal Awards 190
Schedule of Findings and Questioned Costs 191-198
2
Dubuque Finance Dep�arhnent
THE CTTY OF so west is sneet
� Dubuque,Iowa 52001-4805
IIFAmerica City
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TTY(563)690-6678
finance@cityofdubuque.org
2007•2012 www.cityofdubuque.org
Masterpiece on the Mississippi Zo13.zo1,
December 21,2017
Honorable Mayor, City Council Members, and Citizens of the City of Dubuque:
The City of Dubuque, Iowa, pursuant to the requirements set forth by state and federal regulations, hereby
submits the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2017.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentaYion,
including all disclosures, rests with the City. Understanding the cost of internal controls should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
staYements are free of any material misstaYements. To the best of our knowledge and belief, the enclosed
data is accurate in all material respects, and is reported in a manner designed to present fairly the financial
position and results of operations of the various funds and activities of the City.All disclosures necessary to
enable the reader to gain an understanding of the City's financial operations have been included.
The Code of Iowa requires an annual audit by independent certified public accountants or the State Auditor.
The accounting firm of Eide Bailly LLP conducted the audit for fiscal year 2017. In addition to meeting the
requirements set forth in state statutes, the audit also was designed to meet the requirements of an annual
single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulations Part 200,
Unifonn Administr�ative Requirement, Cost Pnncipals, and Audit Requirements for Federal Awards
(Uniform Guidance). Information related to this single audit, including the Schedule of Expenditures of
Federal Awards, findings, recommendations, and the auditor's report on internal control over financial
reporting and compliance with requirements applicable to laws, regulations, contracts, and grants, are
included in the Compliance Section of this report. The independent auditors' report is included in the
Financial Section of this report.
The City provides a full range of services including: police and fire protection; sanitaYion services; the
construction and maintenance of roads, streets, and infrastructure; inspection and licensing functions;
maintenance of grounds and buildings; municipal airport; library; recreational activities; and cultural
events. In addition to general government activities, the municipality owns and operates enterprises for a
water system, water resource and recovery center (wastewater treatment), stormwater system, parking
facilities, refuse collection, and public transportaYion.
This report includes all funds of the City of Dubuque, as well as its component units. Component units are
legally separate entities for which the City is financially accountable. This report includes the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives and Subsidiaries, and Dubuque
Convention and Visitors Bureau (CVB) as discretely presented component units. A discretely presented
component unit is reported in a separate column in the government-wide financial statements to emphasize
that it is legally separate from the City of Dubuque and to differentiate its financial position and results of
operations from those of the City. The City appoints a voting majority to the DMASWA governing board
and operates the landfill. Dubuque Initiatives is organized to render service to the City Council of the City
of Dubuque on matters of community interest, and in the event of dissolution, any assets or property of the
organization are transferred to the City. CVB's purpose is to strengthen the Dubuque area economy by
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competitively marketing the area as a destination for conventions, tour groups, sparting events, and
individual travelers. The organization's board members include one City Council member, the City of
Dubuque Mayor, and the City
Manager. In the event of dissolution, any assets or property of the organization shall be transferred to the
City. The City collects hotel/motel taxes and forwards 50%to CVB as the primary source of funds for its
operations.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (niID&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The City of Dubuque's MD&A can be found
immediately following the independent auditor's report.
PROFILE OF THE CITY
The city of Dubuque, incorporated in 1833, is located on the Mississippi River in northeast Iowa, adjacent
to the states of Illinois and Wisconsin. Julien Dubuque, the city's namesake, first began mining lead in the
area now known as Dubuque in 1788. Dubuque is the oldest city in Iowa and has a unique combination of
the old and new, ranging from a historic downtown, numerous examples of Victorian architecture, and a
Civil War era shot tower, to expanding industrial parks, multiple retail centers, a revitalized riverfront, and
two casinos, one with a pari-mutuel dog track. The city of Dubuque has a stable, diversified economic base
and is a majar tri-state retail center. The city currently has a land area of 31.8 square miles, and a census
2010 population of 57,637. The U.S. Census Bureau's 2016 population estimate for Dubuque is 58,531. As
the largest city in the tri-state area, Dubuque serves as the hub of a trade area with a population estimated at
250,000. As of October 2017, the city's unemployment rate was 2.1%, below the state unemployment rate
of 3.0%and the 4.1%national rate.
The City of Dubuque is empowered to levy a property tax on real property located within the city limits.
The City has operated under a council-manager form of governxnent since 1920. Policymaking and
legislative authorities are vested in the governing council, which consists of a mayor and a six-member
council. The city council is elected on a non-partisan basis. The mayor is elected to a four-year term.
Council members are elected to four-year, staggered terms with three council members elected every two
years. Four of the council members are elected within their respective wards; the mayor and the two
remaining council members are elected at-large. The governing council is responsible, among other things,
for setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the city
manager, city attorney, and city clerk. The city manager is responsible for overseeing the day-to-day
operations of the government, making recommendations to the city council on the budget, and other matters,
appointing the heads of the governmenYs departxnents, and hiring employees.
ECONOMIC CONDITION AND OUTLOOK
The economic condition and outlook of Dubuque continues to thrive. The city's economy has a diverse
employer base including manufacturing, technology, health services, insurance, education, and government.
The top 10 employers in the area employ less than 19% of the total warkforce and cover five different
industries, which insulates the city from the negative impact on a downturn in any one area of the economy.
Several industry experts and associations have recognized the community's efforts to diversify its economy.
The Mid-America Economic Development Council (MAEDC) presented Greater Dubuque Development
Corporation with four of the top honors at the 2016 Economic Development awards held December 2016.
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Greater Dubuque Development Corporation took First Place in the following categories:
• Annual Repart far the 2015-2016 Report
• Business Retention&Expansion far the Info Action Program
• Warkforce Development for the HR Action Program
• 2016 Deal of the Year far the Alliant Energy Solar Project
Alliant Energy's Solar Gardens Project was announced in June 2016 and both sites became operational in
the fall of 2017. The two sites in Dubuque form the largest solar development in the state of Iowa. This
project was conducted in collaboration with the City of Dubuque and Greater Dubuque Development
Corporation (GDDC). Most of the solar panels (15,600) were installed on 21 acres of City-owned property
north of Humke Road in Dubuque Industrial Center West. Over 3,500 solar panels were also installed on
six acres owned by A.Y. McDonald Mfg. Co. along U.S. 61/151,near the 16th Street detention basin.
The spotlight was on the City of Dubuque at the International Economic Development Council (IEDC)
annual meeting in September 2016. Mayor Roy D. Buol, Northeast Iowa Community College President Dr.
Liang Chee Wee, and Greater Dubuque Development Corporation all received recognition from the IEDC.
The council's Excellence in Economic Development Awards recognize the world's best economic
development programs and partnerships, marketing materials, and this year's most influential leaders. These
awards honor organizations and individuals far their efforts in creating positive change in urban, suburban,
and rural communities. Mayor Buol received the Leadership Award for Public Service. Dr. Wee was
honored with the Instibxtional Leadership Award. Greater Dubuque Development Corporation was the
recipient of the Bronze Excellence in Economic Development Award for the InfoAction program for
business retention and expansion.
Industrial
Dubugue Industrial Center West (DICGV): Over 550 saleable acres were acquired in 1997. The DICW
comprises 21 local businesses expansions and four new businesses. Most recently, in the south portion of
the park, Rite Hite completed 138,000 square-feet to its current 193,500 square-foot building. This new
addition is expected to add 35 new jobs by 2021. In November 2017, the Iowa Economic Development
Authority (IEDA) announced that a "development-ready"site near Dubuque's Industrial Center West is the
latest industrial site to achieve certification through the Iowa Certified Sites Program. It joins 18 other sites
in the state that have been designated as project-ready. The City-owned property consists of six parcels
covering 163 total acres, of which 103 acres are developable.
Dubugue Industrial Center South (DICS): In May 2017, Flexsteel Industries announced plans to relocate
their manufacturing operations to a new site in the Dubuque Industrial Center South. The company will
invest over $28 Million to construct and equip a new state-of-the-art, 250,000-square-foot facility. The
current manufacturing plant is located at 3400 Jackson Street. This announcement came as a welcome
development after months of collaboration by private and public entities. Priar to the Flexsteel news,
Tri-state Quality Metals was the first business to relocate to DICS from its 10,000 square-foot operations in
Peosta, Iowa. TriState constructed a 44,000 square-foot facility and increased its warkforce by 27 jobs.
Roasting Solutions, LLC(dba Verena Street Coffee) recently constructed a 34,000 square-footfacility. The
company invested over $7 million in plant and equipment and plans to hire 10 new full-time workers by
2020,bringing their total employment to 17 full-time positions.
Dubuque Technology Park: Located on the south side of the city is a 100-acre park designed to
accommodate growing office businesses. Eight businesses are currently located in the park. In 2015,
Rockfarxn Holdings completed construction of their new 14,000 square-foot headquarter office building. In
August 2016, Kunkel &Associates completed a $2.5 million expansion which added an extra 10,000
square-feet to the company's current Dubuque facility and created 16 new jobs.
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Commercial and Retail
Downtawn Development: Over $100 million has been invested in the downtown area where more than 9,000
people wark. Over 500 IBM employees wark on three renovated floors of the nine-story Roshek Building
where Heartland Financial relocated existing staff to the third floor. A major remodel is also underway to
house RSM US LLC's Dubuque warkforce. Cottingham & Butler, headquartered in Dubuque and the
nation's 30th largest insurance broker, announced in October 2017 its plans to make an estimated capital
investment of$2.3 million and add 20 employees to its Dubuque staff over the next three years. In August
2016, the firm announced its plan to invest $1.2 million and add 90 new employees by April 2019 to its
leased space at the Roshek Building. This follows their 2015 decision to invest $1.2 million and add 90
employees to their offices at 1000 and 1030 Main Street by March 2018.
Historic Millwork District: The Schxnid Innovation Center, a $33 million private renovation project
received $8.9 million in CDBG funds to develop warkforce housing. The 72-unit residential project was
completed in September 2012. Nonprofits moved into the basement space while multiple commercial
tenants fully occupy the first floor. Gigantic Design opened its new headquarters in the complex in 2016.
The $32 million renovation and the creation of 76 residential units in the nearby Novelty Iron Warks has
been completed. The Linseed Oil Building renovation, completed in 2015, includes 16 apartxnents.
In just the past six months alone,two new attractions opened in the district. Back Pocket Brewing Company
constructed and opened a tap room and dining area—already a favorite of both tourists and locals alike—in
the Novelty Iron Works building. In August, after nearly $2.5 million in reconstruction and modernization, 7
Hills Brewing Company completed and opened a new brewery and restaurant in the district.
Construction of a 54-room Marriot Townplace Suite extended-stay hotel broke ground in June 2017 and is
scheduled to open in spring of 2018. The four-story hotel will be in the Historic Millwark District and is
being designed to model the existing architecture in the area.
Brewery Neighborhood Conservation District: The former Dubuque Brewing and Malting Company
complex (aka H&W Building) is a collection of buildings constructed primarily of red brick between 1896
and 1934 on the northeast corner of Jackson and 30th Streets. The complex is eligible far the National
Register of Historic Places and is in Dubuque's Brewery Neighborhood Conservation District The southern
portion of the building was purchased by 3000 Jackson LC in March 2017 and wark to restore the building
began. The new owner obtained a demolition perxnit to deconstruct the unsound section of the structure and
plan to stabilize and make immediate repairs to prevent further deterioration. Although a partion of the
historic structure will be demolished, there are plans to repair, stabilize, and eventually completely restore
the property in the future.
Commercial Development: Fiscal Year 2017 was an exceptional year for commercial development as many
businesses broke ground on new projects in Dubuque. Ashley Furniture Store constructed a 38,000
square-foot store off the Northwest Arterial and Laundry Max, a 4,160 square-foot laundromat, opened on
the corner of Grandview and University Avenue. Truck Country, a long-time Dubuque business, completed
their new 53,127 square-foot complex in Key West just off U.S. Hwy 61/151 South. Additionally, Foodliner
and McCoy Group intend to start the renovation wark of the previous Truck Country facility, renovating
portions of this structure to accommodate additional office space. Walmart submitted plans for an extensive
interior and exterior renovation and updates to the existing space with a construction value around $1
million. The Plaza 20 retail center has also submitted plans to add three new commercial buildings totaling
of 50,000 square-feet. Currently, a 15,000 square-foot building is under permit for the first phase of this
project Lebeda Mattress is building a new 5,800 square-foot store near nartheast corner of the Northwest
Arterial and Asbury Road.
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Tri-State Independent Blind Society is conshucting a new 13,123 square foot facility on Cedar Cross Road
and will sell their existing site on Asbury Road to Natural Grocers who will remodel the existing building
and site. Lamar Advertising has completed construction of a new 13,670 square-foot facility on Kerper
Court to replace the existing facility on Elm Street that is being redeveloped for a medical service facility.
In late 2016, the Barrell House opened at 3rd and Main Streets. In August 2017, a new Caribou Coffee and
Einstein Bagels opened in Wacker Plaza. Additionally, Starbucks broke ground on a new, stand-alone store
on U.S. Hwy 20 / Dodge. These developments follow recent openings of Chick-Fil-A, Popeye's, Chipotle
Grill, Devil's Pit Char-B-Que, Five Guy's Burgers, Smoke Stack, and The Dungeon. And, Freddy's Frozen
Custard will open a new restaurant in Asbury Plaza as construction began in the Fall of 2017.
Health Services
UnityPoint-Health Finley Hospital completed a $42 million project in June 2016. A three-story, 70,000
square-foot addition that houses the Finley Heart and Vascular Center, and new emergency and surgery
departxnents. The first floor serves as a new emergency department with 16 exam rooms. Floar two features
eight new general surgical suites, three special procedure rooms, an anesthesia care unit and outpatient
center. The third floor will allow Finley to consolidate all its heart care services into one location. Mercy
Medical Center completed its redesign of the main entrance, admitting, and lab facilities in summer 2017.
The transformation provides more coxnfart and convenience for patients, family, and visitors.
Mercy Medical Center along with Medical Associates Clinic announced plans for a $25 million project to
build a two-story building east of the hospital to serve as a hematology/oncology outpatient clinia The
plans are currently on hold. Iowa Health Facilities Council did not grant their approval for a certificate of
need for a linear acceletor included in the project.
Education
Dubuque Senior High School completed most of the renovations to the school just priar to the beginning of
the 2017-2018 school year. The $30 million, two-year project added a new main entrance, administrative
offices, student commons, cafeteria, gymnasium, and classroom additions to the school. The remaining
projects are expected to be fmished in February 2018.
Wahlert Catholic High School completed a $17.8 million renovation this fall. The school was completely
redone, including new classrooms and hallways, modifying the existing roof structure, and a new heating
and cooling system.
University of Dubuque received a $60 million estate commitxnent, the largest in the University's history.
The investment, an estate gift will support a scholarship Fund. The two-part commitxnent, $37 million of
which has already been received by the University, will bring UD's endowment to over $150 million. Loras
College, a four-year Catholic liberal arts college, officially raised $105.6 million, during its Inspiring Lives
& Leadership campaign. IYs the largest and most successful fundraising effort in the college's 178-year
history. Clarke University remodeled its Food Science Labs, which are the first of their kind in the tristate
area. The space includes a food preparation and processing lab, sensory evaluation lab, and a food analysis
lab. Dubuque is a major center of food production and processing, ingredients manufacturing, and
food-related entrepreneurism. The food science sector is a key area for growth, as identified in the Greater
Dubuque Development Corporation's (GDDC) current marketing plan. According to the GDDC, 68
companies within 90 minutes of Dubuque are related to food science, and there are 498 food
processing-ingredient companies headquartered in Iowa and five surrounding states.
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The City's recent awards and recognition from a variety of sources include:
• The National Civic League named Dubuque a 2017 All-America City. This makes the fourth time in
ten years Dubuque has received this award which recognizes communities whose citizens wark
together to identify and tackle community-wide challenges and achieve uncommon results. Dubuque
received the 2017 award for the Dubuque Campaign for Grade-Level Reading, a netwark of
individuals and organizations working together to ensure that all children read at grade level by the
end of third grade.
• Dubuque was awarded an Outstanding Achievement Award for the Bee Branch Watershed Flood
Mitigation Proj ect at the 2017 City Livability Awards in June 2017. The Conference of Mayors City
Livability Program recognizes mayoral leadership in developing and implementing programs that
improve the quality of life in America's cities,focusing on the leadership, creativity, and innovation
demonstrated by the mayors.
• In November of 2017, Alot Travel, an online travel inforxnation source that describes itself as
offering
"cultivated insights from travel professionals and wanderlust enthusiasts," announced its list of the
"30 Best Small Cities in the United States."Dubuque was ranked #12 and was the only Midwestern
city in the top 20 and one of just two Iowa cities to make the list.
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the mayor and city council,
has been involved in a variety of projects throughout the year. These projects reflect the City's commitment
to continue to provide high quality services to the residents and stakeholders of Dubuque within the budget
guidelines set by the mayor and city council.
Bee Branch Watershed Flood Mitigation Project: The City's $219 million Bee Branch Watershed Flood
Mitigation Project is a 20-year, multi-phased investment to mitigate flooding, improve water quality,
stimulate investment, and enhance quality of life within the Bee Branch Watershed. The City has received
$160 million in state and federal funds far the project. The $60 million Upper Bee Branch Creek
Restoration phase of the project was finalized, and a ribbon-cutting ceremony was held in July 2017 to
celebrate the opening of the Bee Branch Creek Greenway.
In 2016, the City of Dubuque was awarded a total of$31.5 million through the U.S. Department of Housing
& Urban Development (HUD) National Disaster Resilience Competition (NDRC) Grant awarded to the
State of Iowa's "Iowa Watershed Approach." This total includes $8.4 million far the Bee Branch Healthy
Homes Resiliency Program in the form of five-year forgivable loans to improve 320 housing units, including
owner-occupied homes; single-unit rentals; and small, multi-family residential units. The grant will also
provide $23.1 million for stormwater infrastrucbxre improvements related to the Bee Branch Watershed
Flood Mitigation Project. Specifically, this includes $9 million towards the $18 million project to install
culverts to pass floodwaters from the Upper Bee Branch to the Lower Bee Branch through the railway yard
on Garfield Avenue. The grant will also provide $11.5 million towards the $15.4 million project to provide
drainage improvements from the Bee Branch Creek to the west along 22nd Street up Kaufmann Avenue all
the way to Kane Street. Finally, the grant will provide $2.6 million towards the $11.3 million project to
provide drainage improvements from the Bee Branch Creek to the west along 17th Street to West Locust
Street and along West Locust Street towards Kirkwood Street The IILJD Resiliency Grant will expedite the
completion of the Bee Branch Watershed Flood Mitigation Project, expanding its scope to lessen the flood
damage caused by future flash floods.
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As part of the Bee Branch project, the City will convert 240 alleys in the Bee Branch Watershed to "green
alleys" which feature permeable concrete pavers. These specifically designed pavers allow water to pass
through the surface and filter into the soil below. The green alleys are expected to reduce the amount of
storxnwater run-off in the watershed by up to 80 percent and prevent flooding. In addition to reducing
stormwater run-off, the green alleys will replenish ground water and help prevent pollutants on roadways
from running off into the storxn sewer system, and ultimately, the Mississippi River. As of fall 2017, more
than 70 alleys have been completed.
Water System Purchase: In late 2016, the City of Dubuque executed an agreement to purchase a private
water system from the Central Iowa Water Association (CIWA). The agreement settled ongoing litigation
between the City and CIWA, resulting in transferred ownership of the private water system to the City of
Dubuque. Under the agreement, CIWA relinquished its federally protected service area far two miles
outside of the City's current corporate limits. Additionally, CIWA agreed not to serve any water or sewer
customers in the future within two miles of the City's corporate limits at the time service is requested, and
as the corporate city limits expand. The acquisition of the water system, including the water tower near
Swiss Valley Road, enables the City of Dubuque to meet the future needs of residential, commercial, and
industrial water customers in these and surrounding areas. Dubuque's municipal water system has readily
available capacity and pressure needed for fire suppression to commercial and industrial facilities, as well
as serve the needs of industrial manufacturing processes with water pressure requirements. The service area
includes the Southwest Arterial project corridor, the development of which is estimated to have the
potential to generate $1.67 billion in economic output, $653 million in labor income, and $1.02 billion in
value added from 2021-2030.
Intermodal Transportation Center: The Jule, the City of Dubuque's Public Transit Division, completed its
$12 million Intermodal Transpartation Center in the Historic Millwark District in spring of 2016. This
facility provides vital transportation connections required far the success of existing investments and will
be instrumental in leveraging additional investments required to achieve the long-term goals for downtown
Dubuque. The centralized transportation hub connects automobile, bus, and pedestrian traffic, while
increasing demand for alternative transpartation modes. Dubuque County and the Dubuque Community
School District will benefit from the center, as it provides various transpartation options for Millwark
District and Washington Neighborhood residents, as well as visitors and downtown employees, spurring
economic development in the district Part of the project was funded with an $8 million grant from the U.S.
Federal Transit Administration.
That facility will soon be complimented by a new Jule Operations and Training Center being constructed
nearby on Kerper Blvd. It will replace the century-old facility on Central Avenue and provide numerous
operating efficiencies. The $6.8 million project will be completed in early 2018 and is supplemented with
nearly$5.3 million in state and federal funds.
SouthwestArterial: In 2013, the City of Dubuque and the Dubuque Metropolitan Area Transpartation Study
(DMATS) successfully negotiated a Memorandum of Understanding with the Iowa Deparhnent of
Transpartation (Iowa DOT) far the transfer of jurisdiction of the Southwest Arterial/ U.S. Hwy 52 project,
a 6.1-mile, four-lane, divided freeway with priority-one access control and will provide an alternative route
far traffic through southwestern Dubuque. It will connect the Dubuque Technology Park on U.S. Hwy 61 /
151 with the new Dubuque Industrial Center West and the existing Dubuque Industrial Center near U.S.
Hwy 20 / Dodge. Property acquisition was completed in 2016 and a groundbreaking ceremony was held in
October 2016. Extensive grading and construction are currently under way. The Iowa DOT, DMATS,
Dubuque County, and the City of Dubuque have budgeted over $159 million to build the Southwest Arterial
with a preliminary two-lane design scheduled for completion in 2019.
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Following the completion of the Southwest Arterial, the project has the potential to generate $80 million in
property taxes, $1.67 billion in economic output, $653 million in labor income, and $1.02 billion in value
added from 2021 to 2030. The Southwest Arterial will also annually generate $135 million in state and local
taxes and $130 million in federal tax from new economic development, as well as save $30 million for the
10-year period. This project will also generate $16 million in property tax, $304 million in economic output,
$24 million in state and local taxes, and $24 million in federal taxes due to economic development, in
addition to $3 million in safety savings from 2030 onwards. Side benefits include removing over 500
commercial vehicles a day from downtown streets and encouraging redevelopment on Central Avenue and
White Street. Almost 1,000 trucks per day will be removed from U.S. Hwy 20 / Dodge. Additional traffic
will be removed from Kelly Lane, Fremont Avenue, Cedar Cross Road, Rockdale Road, and other
residential streets.
For the Future. The mayor and city council will continue to take action to achieve their goals of
maintaining a strong local economy, sustaining stable property tax levies, and enhancing the safety and
security of residents through neighborhood vitality. City staff will wark to implement the city council's
vision for Dubuque. A program of comprehensive service reviews has continued as a vehicle for analyzing
City services, identifying opporbxnities for improvement, and determining areas of possible cost reductions.
The goal of the service review program is to ensure that services desired by the citizens are provided in the
most cost effective and efficient method possible. The city council's goals far the next five years and
beyond include the following:
• Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity
• Vibrant Community: Healthy and Safe
• Livable Neighborhoods and Housing: Great Place to Live
• Financially Responsible, High-Perforxnance City Organization: Sustainable, Equitable, and
Effective Service Delivery
• Sustainable Environxnent: Preserving and Enhancing Natural Resources
• Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and
Equitable Diverse Arts, Culture, Parks, and Recreation Experiences and Activities
• Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility
FINANCIAL INFORMATION
Internal Controls: City management is responsible for establishing and maintaining internal controls to
ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that
adequate accounting data is compiled to allow far the preparation of financial statements in conformity with
generally accepted accounting principles.
Single Audit: As a recipient of federal and state financial assistance, the City of Dubuque's government is
responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable
laws, regulations, contracts, and grants related to those programs. These internal controls are subject to
periodic evaluation by management.
As a part of the City's single audit described earlier, tests are made to determine the adequacy of internal
controls, including that portion related to federal programs, as well as to deterxnine that the government has
complied with applicable laws,regulations, contracts, and grants.
Budgeting Controls: In addition, the governxnent maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the city council. All funds, except for fiduciary fund types which include pension trust
funds, private purpose trust funds, and agency funds are included in the annual budget process. The level of
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budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is
established by state programs. The government also maintains an encumbrance accounting system as one
technique for accomplishing budgetary controL Encumbered amounts lapse at year-end; however,
encumbrances generally are re-appropriated as part of the following year's budget. As demonstrated by the
statements and schedules included in the financial section of this report, the City continues to meet its
responsibility for sound financial management.
Cash Management: Cash temporarily idle during the year was invested in demand deposits, certificates of
deposit, federal agency obligations, and authorized mubxal funds. The City (including DMASWA) received
cash basis inveshnent earnings of$872,320 far the year. The investment policy adopted by the city council
stresses the importance of capital preservation. The policy directives intend to minimize credit and market
risks while maintaining a competitive yield on the portfolio.
Risk Management: The City of Dubuque is a member of a statewide risk pool for local governments, the
Iowa Communities Assurance Pool (ICAP). The coverage for general and auto liability, as well as public
official and police professional liability are acquired through this pool. Workers' compensation coverage up
to $500,000 for each accident is provided through self-insurance. The accumulated reserve provision for
such claims reflected a $99,108 net position as of June 30, 2017. The City has also established a
self-insurance plan for medical, prescription drug, and shart-term disability. The accumulated reserve
provision for such claims equaled $1,550,951 as of June 30, 2017. All self-insured health plans are certified
as actuarially sound and certificates of compliance have been filed with the State of Iowa.
Bond Rating: Moody's Investor Service assigned a Aa3 rating on the Series 2016 A, B, and C bonds,which
reflects the City's sizable tax base and role as a regional economic center in nartheastern Iowa; a trend of
strong employment growth which is projected to continue;recent declines in fund balance and cash reserves
which are expected to stabilize at healthy levels going forward; high debt burden with additional borrowing
planned; and moderate exposure to unfunded pension liabilities. In October of 2016, Moody's upgraded the
2015A bond to an A2 from an A3 rating. The notching reflects the city's adequate debt service coverage
provided be the pledged sales tax revenue and their expectation to provide coverage of 2.5 times the
maximum annual debt service. The City's revenue bonds are rated Aa3.
Moody's provides credit ratings and research covering debt instruments and securities. The purpose of
Moody's ratings is to provide investors with a simple system to gauge future relative creditworthiness of
securities. The firxn uses nine rating classifications to designate least credit risk to greatest credit risk: Aaa,
Aa, A, Baa, Ba, B, Caa, Ca, and C. Moody's appends numerical modifiers 1, 2, and 3 to each rating
classification.
AWARDS AND ACKNOWLEDGEMENTS
Awards: The Government Finance Officers Association of the United States and Canada(GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reparting to the City of Dubuque, Iowa, for its
Comprehensive Annual Financial Report far the fiscal year ended June 30, 2016. This was the 29th
consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a governxnent unit must publish an easily readable and efficiently organized comprehensive
annual financial repart. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current comprehensive
annual financial report continues to meet the Certificate of Achievement program requirements, and we are
submitting it to the GFOA to determine its eligibility for another certificate.
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GFOA also awarded a Certificate of Recognition for Budget Preparation to the City of Dubuque, Iowa, for
its annual budget for the fiscal year ended June 3 0, 2017. In order to receive this award, a governmental unit
must publish a budget document that meets program criteria as a policy document, as an operations guide,
as a financial plan, and as a communications device. This was the 12th consecutive year that the City has
achieved this prestigious award. This award is valid for a period of one year.
The City of Dubuque's investment policy was awarded the Certification of Excellence in July 2009 by the
Association of Public Treasurers of the United States and Canada. The investment policy is reviewed every
five years by the APT US&C. The investment policy was successfully recertified in 2016.
Acknowledgments: The preparation of this report could not be accomplished without the efficient and
dedicated services of the entire Finance Department staff. We also thank the mayor and city council for
their interest and support in planning and conducting the financial operations of the City of Dubuque in a
responsible and progressive manner. We also thank the independent certified public accountants, Eide
Bailly LLP,whose competent assistance and technical expertise have enabled the production of this report.
Sincerely,
. ��'��
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Michael C. Van Milligen Jean M.Nachtman, CPA, CPFO
City Manager Finance Director
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CITY OF DUBUQUE ORGANIZATIONAL CHART
Citizens of Dubuque
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CiTy Attorney — City Cowlcil — City Clerk
Library Airport
ManagementlLegislative � CIYy Managel''s Neighborhood
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SCCVICRS 9yrtans
Emergency Health Services
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Planning Services Police
Departrnent
Economic NSre Departrnent
T��.mnm�.�� ra�kmq Development a.��q��y e.w��o�
Div6ion Managemeu[ 9ervices
Arcs antl
cmm�a�eaam: Engineering Housing&
Departrnent Community
Develooment
Leisure Services Human Rights
R�°�b� PackDivisi� Tcaming& HumanRelatl�s
Div6wn
Workforce
Developm�[
Multlmttucal GcantlRivu'
xa.mqc�naP.r c�naP.r BuildingServices Water
Departrnent
cmmc�re�
Public Works �'ater&
Resource
Recovery Center
Elected by the Appointed by the Appointed by the Appointed by the
Citizens of Dubuque City Council Library Board of AirpoM Commission
Trustees
13
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30,2017
CITY COUNCIL
Roy D. Buol Mayor
Ric W. Jones Council Member—At Large
David T. Resnick Council Member—At Large
Kevin J. Lynch Council Member— lst Ward
Luis Del Toro Council Member—2nd Ward
Joyce E. Connors Council Member—3rd Ward
Jake A. Rios Council Member—4th Ward
COUNCIL APPOINTED OFFICIALS
Michael C. V an Milligen City Manager
Barry A. Lindahl Seniar Counsel
Crenna M. Brumwell-Sahxn City Attorney
Maureen A. Quann Assistant City Attorney
Kevin S. Firnstahl City Clerk
DEPARTMENT MANAGERS
Robert A. Grierson Airport Manager
Therese H. Goodmann Assistant City Manager
Jenny M. Larson Budget Director
Todd M. Carr Building Services Manager
Gus N. Psihoyos City Engineer
Maurice S. Jones Economic Development Director
Jean M. Nachtman Finance Director
Rick A. Steines Fire Chief
Mary Rose Corrigan Health Services Manager
Alvin L. Nash Housing and Community Development Manager
Kelly R. Larson Human Rights Director
Randall K. Peck Personnel Manager
Christine A. Kohlmann Inforxnation Services Manager
Marie L. Ware Leisure Services Manager
Susan A. Henricks Library Director
John L. Klostermann Public Works Director
Laura B. Carstens Planning Services Manager
Mark M. Dalsing Police Chief
Robert M. Green Water Department Manager
William J. O'Brien Water&Resource Recovery Center Manager
14
�
Government Finance Officers Association
Certificate of
Achieve�.nent
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2016
2 � ' 4
� I
Executive Director/CEO I
15
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16
Financial Section
June 30, 2017
City of Dubuque, Iowa
17
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18
EideBailly
cr�a eusixEss nunw�s
Independent Auditor's Report
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on the Financial Statements
We have audited the accompanying financial statements of the governxnental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund inforxnation of the City of Dubuque, Iowa as of and far the year ended June 30, 2017 and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's ResponsibiliTy for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentarion of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's ResponsibiliTy
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of Dubuque Initiatives and Subsidiaries, which represent 61 percent, 76
percent, and 67 percent, of the assets, net position, and revenues of the aggregate discretely presented
component units. Those statements were audited by other auditors whose report has been furnished to us,
and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives and Subsidiaries, is
based on the report of the other auditors. 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 GavernmentAuditing Standards, issued by the Comptroller General of the United States.
Those standards require that we plan and perforxn the audit to obtain reasonable assurance about whether
the financial statements are free from material misstatement. The financial statements of Dubuque
Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau, discretely presented
component units, were not audited in accordance with GavernmentAuditing Standards.
An audit involves perforxning procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the enrity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
What inspires you,inspires us. eidebailly.mm
19
375 E.Horsetooth Rd.Bldg.4200 Fort Collins,CO 805253198 TF 800.4082929 T 970223.8825 F 970223.OS V EOE
Opinions
In our opinion, based on our audit report and the report of other auditors, the financial statements referred
to above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund inforxnation of the City of Dubuque, Iowa, as of June 30, 2017,
and the respective changes in financial position and, where applicable, cash flows thereof far the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the managemenYs
discussion and analysis and the other required supplementary inforxnation listed in the table of contents be
presented to supplement the basic financial statements. Such inforxnation, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary inforxnation in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquires of management about the methods or preparing the information
and comparing the inforxnation for consistency with managemenYs responses to our inquires, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the inforxnation because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
Other Information
Our audit was conducted for the purpose of forxning opinions on the financial statements that collectively
comprise the City of Dubuque, Iowa's financial statements. The introductory section, combining
nonxnajor fund financial statements, and statistical section are presented for purposes of additional
analysis and are not a required part of the financial statements. The accompanying Schedule of
Expenditures of Federal Awards is presented for purposes of additional analysis as required by the audit
requirements of Title 2 U.S. Code of Federal Regulations (CFR)Part 200, Uniform Administrative
Requirements, CostPrinciples, andAuditRequirements forFederalAwards (Uniforxn Guidance), and is
also not a required part of the financial statements.
The combining nonxnajor fund financial statements and the schedule of expenditures of federal awards are
the responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such inforxnation has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements ar to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the combining nonxnajor fund financial statements and the
schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The introductory and staristical secrions have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
zo
Other Reporting Required by Government Auditing Standards
In accordance with Gove�nment Auditing Standa�ds,we have also issued a report dated December 21,
2017, on our consideration of the City of Dubuque,Iowa's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws,regulations, contracts, grant agreements, and
other matters. The purpose of that report is solely to describe the scope of our testing of internal control
over financial reporting and compliance and the results of that testing, and not to provide an opinion on
the effectiveness of the City's internal control over financial reporting or on compliance. That report is an
integral part of an audit performed in accordance with Gove�nment Auditing Standa�ds in considering the
City's internal control over financial reporting and compliance.
�GT
Fort Collins, Colorado
December 21, 2017
21
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zz
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
This section of the City of Dubuque's annual financial repart presents our discussion and analysis of the
City's financial performance during the fiscal year that ended on June 30, 2017. Please read it in
conjunction with the transmittal letter at the front of this repart and the City's financial statements found
in the next section of this report.
FINANCIAL HIGHLIGHTS
• The net position of the City of Dubuque increased to $527,733,905 compared to net position of
$501,793,953 for fiscal year 2016.
• Governmental program revenues decreased by $5,748,481 from fiscal year 2016. The largest
portion of the decrease is the lower grants reimbursement far the new terxninal parking at the
airpart and far the SouthWest Arterial project
• The City's business type activities program revenues increased $7,724,294. Charges for services
increased $1,119,101. Water (3%), sewer (3%), storxnwater (7%), and refuse (2%) rates were
increased in fiscal year 2017. Grant reimbursements for construction of the new Transit Bus
Garage increased as construction is in full swing, while capital contributions for both storxnwater
and sewer increased due to subdivisions being completed and assets being donated to the City.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements consist of government-wide financial statements, fund financial
statements, and notes to the financial statements. This discussion and analysis is intended to serve as an
introduction to the basic financial statements. This report also contains other supplementary information
in addition to the basic financial statements themselves.
Government-wide Financial Statements
The governxnent-wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private-sector business. The paragraphs below provide a brief
description of the governxnent-wide financial statements.
The statement of net position presents information on all of the City's assets, deferred outflows,
liabilities, and deferred inflows, with the difference between assets plus deferred outflows, and liabilities
plus deferred inflows reported as net position. Over time, increases or decreases in net position may serve
as a useful indicator of whether the financial position of the City is improving or deteriorating. To assess
the overall health of the City,you need to consider additional non-financial factors such as changes in the
City's property tax base and the condition of the City's infrastructure.
The statement of activities presents inforxnation showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reparted 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 result in cash flows in future fiscal periods such as
uncollected taxes and earned but unused sick and vacation leave.
23
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
The government-wide financial statements include not only the City itself (known as the primary
government), but also three other legally separate entities (lrnown as component units), the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives (D� and Subsidiaries, and the
Dubuque Convention and Visitors Bureau (CVB) for which the City of Dubuque is considered
financially accountable. Financial information for DMASWA,DI, and CVB are reparted separately from
the financial information presented for the primary government. The Dubuque Metropolitan Area Solid
Waste Agency, Dubuque Initiatives and Subsidiaries, and Dubuque Convention and Visitors Bureau
issue separate financial statements. Dubuque Initiatives and Subsidiaries' financial statements are
prepared on a calendar year basis while the Dubuque Metropolitan Area Solid Waste Agency's and
Dubuque Convention and Visitors Bureau's financial statements are prepared on the same fiscal year
basis as the City of Dubuque.
The government-wide financial statements are divided into two categories:
Governmental adivities. This category consists of services provided by the City that are principally
supparted by taxes and intergovernxnental revenues. Basic City services such as police, fire, public
works,planning, parks, library, and general administration are governxnental activities.
Business-type activities. These activities are supparted primarily by user fees. The services provided by
the City in this category include water, sewer, storxn water, refuse, salt, parking,transit and the America's
River Project
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate
compliance with legal requirements for financial transactions and reporting. All of the funds of the City
can be divided into three categories: governmental funds,proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However, unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such inforxnation may be useful in evaluating a governxnenYs near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governxnental funds with similar
information presented for governxnental activities in the governxnent-wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near-term financial decisions. Both
the governxnental fund balance sheet and governmental fund statement of revenues, expenditures, and
changes in fund balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
za
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
The City maintains three individual major governxnental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances far the general fund, tax increment financing fund, and debt service fund, all of
which are considered to be major funds. Data from all other governxnental funds are combined into a
single, aggregated presentation. Individual fund data for each of these nonxnajor governmental funds is
provided in the form of combining statements elsewhere in this report.
The City legally adopts an annual budget by function. A budgetary comparison schedule has been
provided.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprises funds to account for its sewer, water, storxn water, and refuse
utilities, transit service, parking facilities, salt, and America's River Project. Internal service funds are
accounting devices used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its engineering services, garage services,
stores/printing, health insurance, and warkers' compensation. The City's internal service funds
predominately benefit the governxnental activities and have been included in the governmental activities
in the government-wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to suppart the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City has two
fiduciary funds, an agency fund reporting resources held far the Dubuque Racing Association for
improvements at the greyhound racing facility and an agency fund used for reporting resources from
Mediacom for purchasing equipment relevant to public, educational, and governmental (PEG) access
broadcasting.
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.
Required supplementary information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary inforxnation concerning the budget and
actual results of the City, the City's proportionate share of the net pension liability and related
contributions for both of the City's pension plans, and the funding progress for the retiree benefit plan.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonxnajor enterprise funds, internal service funds, and agency funds, are presented
immediately following the required supplementary information.
zs
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net position. As noted earlier, net position may serve as a useful indicator of a governmenYs financial
position when observed over time. The analysis that follows focuses on the change in net position for the
governmental and business-type activities.
The largest part of the City's net position reflects its net investment in capital assets such as land,
buildings, infrastructure, machinery, and equipment less any related debt used to acquire those assets that
is still outstanding. The debt related to the investment in capital assets is liquidated with resources other
than capital assets. Restricted net position represents resources subject to external restrictions,
constibxtional provisions or enabling legislation on how they can be used. Unrestricted net position is the
part of net position that can be used to finance day-to-day operations without constraints established by
debt covenants, legislation, or other legal requirements.
CITY OF DUBUQUE'S NET POSITION
6ovemmevtalAc[ivities B�sivess-typeActivifies Total
201] 2016 201] 2016 201] 2016
CurrevtavdoNecassels $ 96,5]5,236 $ 95y9],489 $ 41,8]0,8]9 $ 46,385,321 $ 138,446,115 $ 142,382,810
Capitalassels 416,559,468 411y32,115 335,581,393 312,026,1]5 ]52,140,861 ]23y58,290
Totalassels 513,134,]04 50]y19,604 3]],452,2]2 358,411,496 89Q586y]6 866,341,100
Deferredo�tflowsofresources 15,40Q630 8,309,113 1,560y05 Slly44 16y61,535 9,121,05]
Lovgtertnliabilities 119,295,802 125,242,041 193y53,18] 185,823,5]5 323,248y89 311,065,616
ONerliabilities 15y02,342 16,658,669 12,]10,09] 14,609,023 28,612,439 31,26],692
Total liabilities 145 198 144 141 y0Q]10 206 663 284 200 432 598 351 861 428 342 333 308
Deferredivflowsofresources 2]]2518] 30]86633 22]y91 548263 2]y53,1]8 31334896
Net positiov:
Netivvestrnentivcapitalassels 3]5,5]8,520 369,244y04 164,448,390 161,326,]43 540,026y10 530,5]1,64]
Res[ricted 23y55,112 21,4]3,309 3,]96,]52 4,254y0] 2],]51,864 25,]28,216
Unrestric[ed (43,921,629) (4],166,839) 38]6]60 (],339,0]1) (4Q044,869) (54,SOSy10)
Totalvetpositiov $ 355,612,003 $ 343,551,3]4 $ 1]2,121y02 $ 158,242,5]9 $ 52],]33y05 $ 501,]93y53
Net position of the governmental activities increased $12,060,629 over fiscal year 2016 balance of
$343,551,374. Governxnental activities had $2.6M of capital assets donated from outside sources. There
was also a large increase in deferred outflows of resources due to investxnents differences in relation to
pension liability with IPERS and MFPRSI. Grant revenues decreased by $SSM. The majority of the
decrease was made up of a $2.4M decrease as the Airport Terxninal project completed and a $3.3M
decrease in grant revenues far the Southwest Arterial Project. These decreases combined with smaller
increases spread across other grants accounted far the overall decrease of grant revenues.
zs
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
Net position far the business-type activities increased $13,879,323 over fiscal year 2016 of
$158,242,579. Charges for services increased $1,119,101. The increase in charges for services revenue
reflects the increase in water and sewer rates by 3% and the 2% increase in refuse and 7% increase in
storxnwater rates Grants and contributions increased $6.6 million, this was due to an increase in transit
grants along with an increase in contributions in the sewer, storxnwater and transit funds over fiscal year
2016.
A portion of the City's net position $27,751,864 or 5.3%represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal year 2017, the City has negative total unrestricted net position. The
government-wide negative unrestricted results from the TIF (governxnental activities) debt being used to
finance capital assets of the business-type activities.
Governmental activities. Taxes are the largest source of governmental revenues with properly taxes of
$39,678,473 in 2017. Other governmental revenues included gaming $8,098,324, local option sales taxes
$8,890,046, and charges for services $14,920,016.
Governmental operating expenses during 2017 totaled $94,643,763. The largest programs were public
safety of $30,020,343, public works of $19,608,137, community and economic development of
$18,096,170, and culture and recreation of$13,653,509.
Business-type activities. Business-type activities increased net position by $13,879,323 in fiscal year
2017 compared to fiscal year 2016 net position of $158,242,579. Operating revenue increased
$1,119,101. Sewer's supplies and services expenses were lower in fiscal year 2017 than fiscal year 2016,
due to the cessation of the I&I Program, along with a reduction of general sewer repairs. This was also
the first year the Sewer fund accounted for inventory at year end. Sewer, Storxn & Water saw large
increases in capital contributions as subdivisions were completed and their assets were transferred to the
City. Intergovernmental revenue decreased $709,140; of which, $696,163 was a decrease in transit
operating grants.
z�
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
6ovemmevtalAc[ivities B�sivess-typeActivifies Total
20ll 2016 201] 2016 201] 2016
Revev�es:
Prog�am reven�es
Chacgesfocservices $ 14y20,016 $ 15,088,466 $ 33,090,352 $ 31y]1,251 $ 48,010,368 $ 4],059,]1]
Operafivg gcavls avd covMb�tiovs 15,028,52] 15,301,219 1,]OO,lll 1,648,0]] 16,]28,698 16y49,296
Capital gcavls avd covMb�tiovs 13,360,280 18,66],619 14,160,820 ],60],]21 2],521,100 26,2]5,340
6evecal revev�es
Propertytexes 39,6]8,4]3 36,518,506 - - 39,6]8,4]3 36,518,506
Local optiovsalestex 8,890,046 9,155,411 - - 8,890,046 9,155,411
Hotel/motel tex 2,821,]45 2,128,042 - - 2,821,]45 2,128,042
Utilityfravcttisefees 4,558,84] 4,360,10] - - 4,558,84] 4,360,10]
6arttivg 8,098,324 8,440,161 - - 8,098,324 8,440,161
Unrestric[edivvestrnentearnivgs 335,5]] 1,082,165 231,]46 40],528 56],323 1,489,693
6aiv ov sale of capital assets 83]20 813 492 54 0]4 102 824 13]]94 916 316
Totalreven�es 10],]]5,555 111,555,188 49,23],163 41,]3],401 15],012,]18 153,292,589
Er.penses:
P�blicsafety 30,020,343 26,851,624 - - 30,020,343 26,851,624
P�blicwocks 19,608,13] 24,323,023 - - 19,608,13] 24,323,023
Hea1N and soQal services 815,251 96]y36 - - 815,251 96]y36
Giltureavdrecreatiov 13,653,509 12y93,331 - - 13,653,509 12y93,331
Comm�niry and economic
developmevt 18,096,1]0 15,464,]81 - - 18,096,1]0 15,464,]81
6evecalgovemment Sy82,668 4,101,423 - - Sy82,668 4,101,423
Interes[on longterm debt 3,46],685 2y63,134 5,355,525 - 8,823,210 2y63,134
Sewagedisposalwocks - - 9,442,558 12,Sll,669 9,442,558 12,Sll,669
Watec�tilily - - 5,928y41 6,483,219 Sy28y41 6,483,229
Stortnwatec�tilily - - 4,06],3]4 5,021,523 4,06],3]4 5,021,523
Parldvgfaalifies - - 3,126,ffi3 3,420,296 3,126,823 3,420,296
America'sRivecProject - - 22,893 21,521 22,893 21,521
Refusewllectiov - - 4,202,]96 3y68,]61 4,202,]96 3y68,]61
1Yaysitsystem - - 4,23],054 4,2]4y6] 4,23],054 4,2]4y6]
Salt 45,039 181,61] 45,039 181,61]
Total er.pevses 94,643,]63 8],665,252 36,429,003 36,189,583 131,0]2,]66 123,854,835
Increase(decrease)iv vet positiov
before e#raocdivary item avd traysfecs 13,131,]92 23,889y36 12,808,160 5,54],818 25y39y52 29,43],]54
1Yaysfers (1,0]1,163) (9]9y00) 10]1163 9]9y00
Increase(decrease)ivvetpositiov 12,060,629 22y10,036 13,8]9,323 6,52],]18 25y39y52 29,43],]54
Netpositioqbeginnivg 343,551,3]4 320,641,338 158,242,5]9 151,]14,861 501,]93y53 4]2,356,199
Netpositioqevdivg $ 355,612,003 $ 343,551,3]4 $ ll2,121y02 $ 158,242,5]9 $ 52],]33y05 $ 501,]93y53
28
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
Governmental funds. The focus of the City's governxnental funds is to provide information on near-terxn
inflows, outflows, and balances of spendable resources. Such inforxnation is useful in assessing the City's
financing requirements.
The City's governmental funds reported a combined fund balance of $55,400,948 at June 30, 2017.
$6,461,116 is in nonspendable for inventory, advances to other funds, receivables, and prepaid items.
$69,412 is nonspendable endowment corpus. $28,105,605 is restricted for debt service and bond
ordinance, road use tax funds, capital improvements, community development programs, employee
benefits, endowments, and various grants. Council ordinance has committed $6,592,154 for capital
improvements. $1,590,065 is assigned for capital improvements and equipment. This leaves
$12,582,596 for unassigned fund balances in the governxnent funds.
The General Fund's fund balance reserve goal is 10% of budgeted annual expenditures. The fund
balance of the General Fund increased by $1,785,245 to $19,760,541. Gaming revenues decreased
$341,837 ar(4.1)%in fiscal year 2017. Tax revenues increased $2.5 million and there were increases in
licenses and permits,fines and forfeits, investment earnings and miscellaneous. There was an increase of
expenditures of$69M in the governmental activities. $3.1M of this was in relation to a pension expense
increase over the prior year related net pension liability, deferred outflows and deferred inflows. $19M
of the increase was in relation to increased expenses in Section 8 and Lead Paint, which in turn was
covered by an increase in related grant revenue. General governxnental saw an increase in expenses in
relation to the funding of the Bus Storage facility. This is a transit asset that is being partially funded
through TIF revenues.
The fund balance of special revenue fund Tax Increment Financing increased slightly by $31,639 to
$7,355,920. Tax revenues increased by $1.8N1, offset by an increase in TIF rebates given and a decrease
in investment revenue due to a drop in market value as compared to prior year.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government-wide financial statements,but in more detail.
The combined net position of the enterprise funds at June 30, 2017, totaled $172,121,902 of which the
unrestricted is $3,876,760.
The net position of the Internal Service Funds increased by $201,638 to $665,029. The Health Insurance
Reserve Fund decreased $454,744 and the General Services increased $612,800. Workxnen's Comp
experienced $813,196 more expenses in 2017 as compared to 2016. The unrestricted net position of the
Internal Service Funds is $499,972.
zs
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
The Sewer Fund had a decrease by $846,848 far total net position of $26,506,068. Assets for green
alley improvements are moved yearly from Sewer Fund into Storxnwater Fund to reflect the enterprise
benefiting from the assets. The debt far the green alley project is paid with sewer revenue funds. This is
an agreement with the Iowa State Revolving Loan. Currently $8.7 million of debt for green alley is
recorded in the Sewer Fund and assets in the Storxnwater Fund.
The Water Utility had an increase in net position by $2,449,289 far total net position of $27,261,925.
Water rates were increased 3%in 2017.
The Storm Water Utility had a 17.5% increase in net position of $8,239,469. Ending net position is
$55,159,049. $2.8 million in assets for green alley project was transferred to Storxnwater from Sewer.
The debt far this asset is remaining in the Sewer Fund. Stormwater had a 7% increase in rate for fiscal
year 2017.
The Parking Facilities had a increase in net position of $27,890. Ending net position is $47,755,020.
Revenues increased $39,564. Depreciation expense also increased $156,499 over fiscal year 2016 as this
was the first year the parking ramp at the Interxnodal Center was depreciated.
Other Enterprise Funds net position increased by $4,009,523 to $15,439,840. This was primarily due to
Transit's increase of$3,984,066 in net position due to a contribution of assets from governmental funds
along with receiving grant dollars for building of the new bus garage.
Health Insurance Reserve decreased in fiscal year 2017 by $454,744. Revenues decreased by $978,457
and claims increased 1%over 2016.
Workxnen's Comp Reserve net position decreased by $63,766. The fund saw an increase in both actual
claims paid and claims payable accounting for the increase.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2016-2017 cash basis budget. The first amendment was
passed in September 2016 to reflect operating and capital budget carryovers (continuing appropriation
authority) from fiscal year 2016 and amended the fiscal year 2016 budget for operating and capital City
Council actions since the beginning of the fiscal year. The second budget amendment was passed in
March 2017 to reflect City Council actions since the second budget amendment and amendments to add
additional appropriation authority due to increased revenues.
The final budget far total cash basis receipts increased by $42,049,710. The increase was primarily
attributable to revenue associated with capital projects and operating carryovers which mainly include
grants to intergovernmental funds. The final budget far total expenditures increased $98,730,453 from
the original budget. The increase was primarily attributable to purchase order encumbrances carryover,
capital projects, and operating carryovers from the prior year and expenditures associated with new
grants received.
30
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
Actual cash basis revenues were $45,264,235 less than the final amended budget; and, cash basis
expenditures were $92,374,940 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business-type activities as
of June 30, 2017, amounts to $752,140,861 (net of accumulated depreciation). This inveshnent in capital
assets includes land, buildings, improvements other than buildings, machinery and equipment,
infrastructure, and construction in progress. Additional information on the City's assets can be found in
Note 6 to the financial statements in this report.
CAPITAL ASSETS(net of acwmulated depreciation)
Gwemmental Activities Business-type Acti4ities Total
201� 2016 201� 2016 201� 2016
Land $ 80,134,81� $ �9,�62,�21 $ 24,185y03 $ 23,0]0,018 $ 104,320,�20 $ 102,832,]39
Buildivgs 140y98,926 140,451y9] 152,109,�]8 151,445�82 193,108,�04 191,89],3�9
Impvwemevl�othevihanbuildivgs 23,8]4,592 23,�64,449 161,541265 142,5�9,440 185,415,85� 166�43,889
Maclilveryandequipmevt 4�,225,119 46,318,912 110,364,436 103,8]2�39 15�,589,555 150,191,311
InfiastrucNre 231y30,452 22�y44,685 - - 231y30,452 22�y44,685
Covstructiovivprogvess 44,6]3y68 38,114214 6,50],415 1,888,488 51,181,383 40,002,�02
n���aeeaaep�e��aeoo (isz2�s,aoc� (iaa,aza,9z3) (iiv,iz�,aoa) (iiqsas,avz) (z�i,aos,sio) (zss,zsa,ais)
a aic,ssv,acs a aiiy3z,iis a 33s,ssi�v3 a 3iz,ozc,vs a �sz,iaqsci a n3yss,aso
Major expenditures during 2016-2017 were far the construction wark on the Bus Garage, SouthWest
Arterial construction, Green Alley projects, Grandview/Delhi Roundabout and Bee Branch storm water
projects.
Long-term debt At year end, the City had $273,287,607 of debt outstanding. During fiscal year 2017,the
City issued $20,360,000 of general obligation bonds, $20,130,000 of which was used for refunding. The
City refunded $20,495,000 of general obligation bonds. The refunding was undertaken to reduce total
debt service payments. The results of the transaction is a reduction of$1,326,119 in future debt service
payments for an economic gain of$1,148,511
Revenue capital loan notes have been issued far the planning and construction of sewer, storxnwater, and
water capital projects through the State of Iowa State Revolving Loan Funds (SRF). The City issued an
additional $7,388,799 of SRF debt in 2017 as part of the Bee Branch Storxnwater construction project
and $2,150,596 for green alley projects reducing storxnwater runoff. The City has pledged income
derived from the acquired or constructed assets to pay debt service.
The City continues to operate under the State debt capacity limitations. The State limits the amount of
general obligation debt outstanding to 5%of the assessed value of all taxable properly in the community.
Thus the City's debt capacity is $207,174,109. With $143,800,280 of debt applicable against the capacity,
the City is utilizing 69.41% of this limit Additional inforxnation on the City's long-terxn debt can be
found in Note 7 of this report.
31
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2017
ECONOMIC FACTORS
The City's unemployment rate as of October, 2017 was 2.1%, down from 2.9% in October, 2016. The
national average was 4.1% for October 2017, according to the Bureau of Labor Statistics. State of Iowa
was 3.0%as reported in October, 2017.
The assessed valuation of taxable property, net of exemptions, increased by 5.7%to $2,652,700,000. In
fiscal year 2017, the minimum monthly refuse rate increased from $13.90 to $14.77, sewer and water
rates increased 3%, and the storxn water monthly fee increased from $6.38 to $6.81 per single family unit
(SFU).
Requests for information. This financial report is designed to provide a general overview of the City's
finances for all those with an interest in the governxnent's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to
the Finance Director, 50 West 13th Street,Dubuque,Iowa 52001-4864.
32
Basic Financial Statements
Fiscal Year Ended June 30, 2017
City of Dubuque, Iowa
33
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
JUNE 3Q 2017
Primary Government Component Units
Dubuque
MeVopolitan Dubuque Dubuque
Governmental Business-type Area Solid Initiatives and Convention and
Activities Activities Total WasteAgency Subsidiaries VisiWrsBureau
ASSETS
CURRENTASSETS
Cashandpooledcashinvestrnents $ 36,488,262 $ 15,478,972 $ 51,967,234 $ 2,837,257 $ 1,115,051 $ 3,458
Receivables
Proper[y taY
Delinquent 353,651 - 353,651 - - -
Succeedingyear 25,863,049 - 25,863,049 - - -
Accounts and other 1,734,811 3,304,135 5,038,946 44Q634 206,207 23,235
Specialassesgnents 811,635 - 811,635 - - -
Acaued interest 111,217 27,886 139,103 28,436 - -
Notes 521,437 - 521,437 - 28,776 -
Intergovemmental 8,225,765 4,167,168 12,392,933 5,158 - -
Intemal balances 2,887 (2,887) - - - -
InvenWries 75Q667 906,305 1,656,972 - 133,347 7,899
Prepaiditems 848,186 SQ866 899,052 1Q570
Total Cmrent Assets 75 711 567 23 932 445 99 644 012 3 322 O55 1 483 381 34 592
NONCURRENTASSETS
Expendablerestricted cash&investrnents 9,441,722 17,938,434 27,38Q156 1Q097,226 1,217,509 31,396
Nonespendablerestricted cash andinvestrnents 69,412 - 69,412 - - -
Notesreceivable 11,352,535 - 11,352,535 - 207,230 -
Capital assets
Land 8Q134,817 7A,185,903 104,32Q720 2,952,666 117,723 -
Buildings 14Q998,926 152,109,778 293,108,704 106,495 45,549,283 -
Improvements otherthan buildings 23,874,592 161,541,265 185,415,857 13,668,654 - -
Machineryandequipment 47,225,119 11Q364,436 157,589,555 4,14Q006 23,107 293,828
InfrasWcture 231,93Q452 - 231,93Q452 - - -
Constructionin progress 44,673,968 6,507,415 51,181,383 1,188,804 - -
n��,m�tae�ddepre�ta�o� (isz,z�s,ao� (ii9,iz�,aoa) (z�i,aos,sio) (9,si9,ss9) (�,sss,osi)
TotalNoncurrentAssets 437,423,137 353,519,827 79Q942,964 22,333,992 39,231,801 325,27A
TotalAssets 513,134,704 377,452,272 89Q586,976 25,656,047 4Q715,182 359,816
DEFERRED OUTFLOWS OF RESOURCES
Pension Related defe�red outflows 15 400 630 1 560 905 16961 535 161 696
34
CITY OF DUBUQUE,IOWA EXHIBIT 1
STATEMENT OF NET POSITION(continued)
JUNE 3Q 2017
Primary Government Component Units
Dubuque
MeVopolitan Dubuque Dubuque
Governmental Business-type Area Solid Initiatives and Convention and
Activities Activities Total WasteAgency Subsidiaries VisiWrsBureau
LIABILITIES
C[JRRENT LIABILITIES
Accountspayable $ 7,206,023 $ 4,342,853 $ 11,548,876 $ 538,537 $ 46,477 $ 16Q992
Acauedpa}soll 1,542,879 29Q127 1,833,006 27,130 - -
Loanspayable 68,000 1,028,074 1,096,074 - - 93,071
Notespayable 195,880 3,725,800 3,921,680 - 433,504 -
General obligation bonds payable 5,7A1,016 2,408,985 7,65Q001 395,000 - -
Revenuebondspayable - 305,000 305,000 - - -
Tas inaement financing bonds payable 475,000 - 475,000 - - -
Acaued compensated absences 443,005 55,849 498,854 2,840 - -
Acauedinterestpayable 28Q653 553,409 834,062 22,713 492,080 -
Intergovemmental payable 5,726 - 5,726 74,954 - -
Uneamed revenue 444,160 444,160
TotalCmrentLiabilities 15,902,342 12,71Q097 28,612,439 1,061,174 972,061 254,063
NONCURRENT LIABILITIES
Loanspayable 4,582,000 4,181,828 8,763,828 - - 53,862
Notespayable 255,883 106,788,144 107,044,027 - 5,207,974 -
General obligation bonds payable 48,559,703 42,078,038 9Q637,741 8,973,7A3 - -
Revenuebondspayable - 33,535,566 33,535,566 - - -
Landfill closure and postclosure care - - - 3,705,392 - -
Tas inaement financing bonds payable 19,858,690 - 19,858,690 - - -
Acaued compensated absences 5,047,838 71Q447 5,758,285 235,695 - -
Netpensionliabiliry 46,80Q991 5,74Q059 52,541,050 594,618 - -
NetOPEBLiability 4,19Q697 919,105 5,109,802 98,767
TotalNoncurrentLiabilities 129,295,802 193,953,187 323,7A8,989 13,607,715 5,207,974 53,862
Total Liabilities 145 198 144 206 663 284 351 861 428 14 668 889 6 180 035 307 925
DEFERREDINFLOWSOFRESOURCES
Pension related defe�red inflows 1,576,645 227,991 1,804,636 23,618 - -
Succeedingyearproper[ytas 25,863,049 - 25,863,049 - - -
Defe�red arnount on refunding 285,493 285,493
Total defe�red inflows of resources 27 725 187 227 991 27 953 178 23 618
NET POSITION
Netinvestrnentin capitalassets 375,578,520 164,448,390 54Q026,910 8,422,353 37,571,056 293,828
Res[riRed for/by:
Bondordinancedevelopmentagreement 2,14Q740 3,796,752 5,937,492 - - -
Debtservice 25Q77A - 25Q77A - - -
Employeebenefits 35,104 - 35,104 - - -
Communirydevelopment 8,984,184 - 8,984,184 - - -
Iowa Finance Authoriry Trust 295,667 - 295,667 - - -
Capitalprojects 1Q251,141 - 1Q251,141 - - -
Franchise agreement 569,299 - 569,299 - - -
Endowments,expendable 121,401 - 121,401 - - 1,887
Endowments,nonexpendable 69,412 - 69,412 - - -
Other 1,237,440 - 1,237,440 - - -
State statute - - - 85,556 - -
Landtill closure&pos[closure care - - - 752,448 - -
Minority interest - - - 423,828 - -
Unrestricted (43,921,629) 3,876,760 (4Q044,869) 1,441,OA (3,035,909) (7A3,87A)
TotalNetPosition $ 355,612,003 $ 172,121,902 $ 527,733,905 $ 11,125,236 $ 34,535,147 $ 51,891
See notes W financial statements.
35
CITY OF DUBUQUE,IOWA
STATEMENT OFACTNITIES EXHIBIT 2
FOR THE YEAR ENDED JUNE 3Q 2017
HogcamRevev�es Net(Eyievse)Revev�eavdChavgesivNetPositiov
Primary 6wemmevt CompovevtUvils
Dubuque
Opecativg Capital6rants Metropolitav D�b�q�e D�b�q�e
Charges fic 6ravts avd avd Total Prog�arn 6ovemmevtal B�sivess-type Area Solid Initiatives avd Covventiov avd
FLvctiovs/Prog�ams E4pevses Services CovMb�tiovs Contrib�fions Revev�es Activities Ac[ivities Total WasteAgency S�b9diaries Vi9tocsBurea�
Primary governmeut
6ovemmental Activities:
P�blicsafety $ 30,020,343 $ 2y30,068 $ 1,088,098 $ ],254 $ 4,025,420 $ (25y94y23) $ - $ (25y94,923)
P�blicwocks 19,608,13] 5,681,10] 5,112,]20 11,]30,53] 22,524,364 2y16,22] - 2y16,22]
Hea1N and soQal services 815,251 125,016 13,2]8 - 138,294 (6]6y5]) - (6]6y5])
Giltureavdrecreatiov 13,653,509 2,]6],636 363,450 234,653 3,365,]39 (10,28],]]0) - (10,28],]]0)
Comm�nilyandeconomicdevelopmevt 18,096,1]0 ]]9,456 8,019,]48 1,366,646 10,165,850 (]y30,320) - (]y30,320)
6evecalgovemment Sy82,668 2,636,]33 431,233 21,190 3,089,1% (5,893,512) - (5,893,512)
Interes[on longterm debt 3 46]685 (3 46]685) (3 46]685)
Total govemmevtal ac[ivities 94 643]63 14y2Q016 15 028 52] 13 360 280 43 308 823 (51,334y40) (51,334y40)
B�sivess-type activifies
Interes[on longterm debt 5,355,525 - - - - - (5,355,525) (5,355,525)
Sewagedisposalwocks 9,442,558 12,442,584 14,868 1,014,8]0 13,4]2,322 - 4,029,]64 4,019,]64
Watec�tilily Sy28y41 8,553,225 - ]93,491 9,346,]16 - 3,41],]]5 3,4ll,]]5
Stortnwatec�filily 4,06],3]4 4,0]6,396 14,106 6,]5],336 10,84],838 - 6,]80,464 6,]80,464
Parldvgfaalifies 3,126,823 3,286y4] 18],848 635,42] 4,110,222 - 983,399 983,399
�edoa�sx��e�r�o�eoe zz,sys a - - a - �zz,ssv� �zz,ss9�
xer�seoou�eoo a,zoz,�vc a,iss,osi - - a,iss,osi - �i�,�as� �v,�as�
1Yaysitsystem 4,23],054 459,258 1,483,349 4y59,696 6y02,303 - 2,665,249 2,665,249
Salt 45039 8688] 8688] 41848 41848
Total b�sivess-type activifies 36 419 003 33 090 352 1]00 ll l 14 160 820 48y51,343 12 522 340 12 522 340
Totel primary govemment $ 131 0]2]66 $ 48 010 368 $ 16]28 698 $ 2]521 100 $ 92 260 166 $ (51,334y40) $ 12 522 340 $ (38,812,600)
Component units
D�b�q�e Metropolitav Area Solid W aste
Agevcy $ 4,]33,425 $ 5,21],019 $ - $ 13,]03 $ 5,230,]22 $ 49],29] $ - $ -
D�b�q�elnitiativesandS�bsiAaries 4,266,682 3,032,]24 - - 3,032,]24 - (1,233y58) -
D�b�q�e Covvevfion and Visitocs Burea� 1281 63] 1 214 6]9 80 300 1,294y]9 13 342
TotalCompovevtUvils $ 10,281,]44 $ 9,464,422 $ - $ 94,003 $ 9,558,425 49],29] (1,233y58) 13,342
6evecal revev�es
Pcopertytexes 39,6]8,4]3 - 39,6]8,4]3 - - -
Local opfion sales tae 8,890,046 - 8,890,046 - - -
Hotel motel tae 2,821,]45 - 2,821,]45 - - -
Utilityfravcttisefees 4,558,84] - 4,558,84] - - -
6arnivg 8,098,324 - 8,098,324 - - -
Unrestrictedivvestrnentearnivgs 335,5]] 231,]46 56],323 68,039 502,5]2 158
6aiv on disposal of capital assels 83,]20 54,0]4 13],]94 - - -
�taosf«s �i,mi,ies� i,mi,ise - - - -
Special items 10,002,5]3
Total general reven�es,haysfers avd special items 63 395 569 1 356y83 64]52 552 68 039 10 505 145 158
ChavgeivNetPositiov 12,060,629 13,8]9,323 25y39y52 565,336 9,2]1,18] 13,500
Netpositioqbeginnivgofyeac 3435513]4 1582425]9 501,]93y53 1Q559y00 25,263y60 38391
Netpositioq evdivg ofyeac $ 355 612 003 $ 1]2,121y02 $ 52],]33y05 $ 11125 236 $ 34 535 14] $ 51 891
See votes to 5vavcial statemevts
w
m
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37
CTTY OF DUBUQUE, IOWA
BALANCESHEET
GOVERNNIENTAL FUNDS
JUNE 30,2017
SpecialRevenue
TaY
Increment
General Financing
ASSETS
Cash and pooled cash investrnents $ 13,645,812 $ 4,686,666
Receivables
Proper[y tas
Delinquent 161,286 146,263
Succeeding year 21,151,903 -
Accounts and other 1,467,148 -
Special assessments 13,714 -
Accrued interest 4Q060 39,476
Notes 5,036,975 289,800
Intergovemmental 1,345,045 -
Due from other funds 627,079 -
InvenWries 198,544 -
Prepaiditems 35Q153 -
Restricted cash and pooled cash investrnents 825,459 2,254,448
Total Assets $ 44,863,178 $ 7,416,653
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accountspayable $ 1,799,873 $ 6Q733
Accruedpayroll 1,394,889 -
Intergovemmental payable - -
Due to other funds - -
Uneamed revenue 438,074
Total Liabilities 3,632,836 6Q733
DEFERREDINFLOW OFRESOURCES
Unavailable revenues
Succeeding year proper[y tas 21,151,903 -
Special assessments 13,714 -
Grants 182,061 -
Other 122,123
Total Defe�red Inflows of Resources 21,469,801
FUND BALANCES
Nonspendable
Endowmentcorpus - -
InvenWry 198,544 -
Long-tertn notes receivable 5,036,975 -
Prepaiditems 35Q153 -
Restricted
Endowments - -
Library - -
Police - -
Debt service - -
Bondordinance - 2,14Q740
Capital improvements - 5,215,180
Franchise agreement - -
Special assessmen[s - -
Claims 2,208 -
Iowa Finance Authority Trust - -
Communityprograms - -
Employee benefits - -
Committed,capital improvements - -
Assigned
DRAgaming and distribution 1,59Q065 -
Unassigned 12,582,596
Total Fund Balances 19,76Q541 7,355,920
Total Liabilities,Deferred Inflows of Resources,
andFundBalances $ 44,863,178 $ 7,416,653
See notes W financial statements. 38
EXHIBIT 3
ou,�
Govemmental
DebtService Funds Total
$ 7A8,335 $ 14,37A,047 $ 32,904,860
2,682 43,420 353,651
22Q507 4,49Q639 25,863,049
- 207,064 1,674,212
- 797,921 811,635
212 28,635 108,383
- 6,547,197 11,873,972
- 6,88Q720 8,225,765
- - 627,079
- 474,919 673,463
- 40Q525 75Q678
6,431,227 9,511,134
$ 471,736 $ 4Q626,314 $ 93,377,881
$ - $ 3,494,760 $ 5,355,366
- 117,853 1,512,742
- 5,726 5,726
- 585,180 585,180
6,085 444,159
4 209 604 7 903 173
22Q507 4,49Q639 25,863,049
- 764,034 777,748
- 3,033,139 3,215,200
505 95,135 217,763
221,012 8,382,947 30,073,760
- 69,412 69,412
- 474,919 673,463
- - 5,036,975
- 40Q525 75Q678
- 1OQ431 1OQ431
- 1,201,345 1,201,345
- 2Q970 2Q970
25Q77A - 25Q77A
- - 2,14Q740
- 9,255,866 14,471,046
- 569,299 569,299
- 33,887 33,887
- - 2,208
- 295,667 295,667
- 8,984,184 8,984,184
- 35,104 35,104
- 6,592,154 6,592,154
- - 1,590,065
12,582,596
25Q77A 28,033,763 55,40Q948
$ 471,736 $ 4Q626,314 $ 93,377,881
39
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ao
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET EXHIBIT 3-1
TO THE STATEMENT OF NET POSITION
JUNE 30,2017
Total fund balances-governmental funds $ 55,40Q948
Amounts reported for the govemmental activities in the statement of
net position are different because:
Capital assets used in govemmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets $ 568,513,626
Accumulated depreciation (152,119,215)
416,394,411
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds. Those revenues consist of:
Property tax 40,397
Special assessments 777,748
Other 3,392,565
4,210,710
Pension related deferred outflows of resources and deferred inflows of resources
are not due and payable in the current year and,therefore, are not reported in the
govemment funds as follows:
Deferred inflows or resources (1,504,129)
Deferred outflows of resources 14,904,161
13,40Q032
Intemal service funds are used by the City's management to
charge the costs of equipment maintenance and self-insurance
programs to individual funds. The assets and liabilities
of the intemal service funds are included in govemmental
activities in the statement of net position. 665,029
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of.
General obligation bonds (53,80Q719)
Tax increment financing bonds (2Q333,690)
Notes payable (451,763)
Loans payable (4,65Q000)
Deferred amount on debt refundings (285,493)
Accrued interest (28Q653)
Compensated absences (5,49Q843)
Net pension liability (44,975,269)
Net OPEB liability (4,19Q697)
(134,459,127)
Net position of govemmental activities $ 355,612,003
See notes to financial statements.
41
CITY OF DUBUQUE,IOWA
STATEMENT OF REVEN[JES,EXPENDITURES,AND CHANGES IN FUND BALANCES
GOVERNMENTALFUNDS
FOR THE YEAR ENDED NNE 30,2017
SpecialRevenue
TaY
Increment
General Financing
REVEN[JES
Tases $ 33,38Q659 $ 12,136,422
Special assessmen[s - -
Licensesandpermits 1,505,564 -
Intergovemmental 1,609,7A7 -
Charges for services 10,549,404 -
Finesandforfeits 484,687 -
Investmenteamings 338,487 (195,753)
Contributions 422,751 123,625
Gaming 8,098,324 -
Miscellaneous 731,788
Total Revenues 57,12Q911 12,064,294
EXPENDITURES
Cmrent
Public safety 29,09Q658 -
Publicworks 6,351,236 -
Health and social services 857,739 -
Cultureandrecreation 12,022,076 -
Community and economic development 3,787,854 3,624,251
Generalgovemment 6,779,764 -
Debt service
Principal - -
Interestandfiscalcharges - 3,007
Capital projects 13,233
Total Expenditures 58,889,327 3,64Q491
EXCESS(DEFICIENCI�OF REVENUES
OVER(UNDER)EXPENDITURES (1,768,416) 8,423,803
OTHER FINANCING SOURCES(USES)
Issuance of debt - -
Issuance ofrefunding bonds - -
Premium on bonds - -
Premium on refunding bonds - -
ltansfers in 6,529,026 546,7A5
�rar�sferso�c (s,iis,sss) (s,9ss,ao9)
Insurancerecovery 15,033 -
Sale of capital assets 125,457
Total Other Financing Sources(Uses) 3,553,661 (8,392,164)
NET CHANGE IN FUND BALANCES 1,785,7A5 31,639
FUND BALANCES,BEGINNING 17,975,296 7,324,281
FUND BALANCES,ENDING $ 19,76Q541 $ 7,355,920
See notes W financial statements.
42
EXHIBIT 4
ou,�
Govemmental
DebtService Funds Total
$ 324,881 $ 1Q107,149 $ 55,949,111
- 261,233 261,233
- - 1,505,564
43,802 24,661,7A8 26,314,297
- 266,621 1Q816,025
- - 484,687
19,298 173,545 335,577
- 142,861 689,237
- - 8,098,37A
1 079 893 1 811 681
387 981 36 692 550 106 265 736
- 64,470 29,155,128
- 5,377,480 11,728,716
- 1Q541 868,280
- 375,218 12,397,294
117,379 8,945,069 16,474,553
- 507,822 7,287,586
17,615,698 - 17,615,698
3,576,800 - 3,579,807
16,247,618 16,26Q851
21,309,877 31,528,218 115,367,913
(20,921,89� 5,164,332 (Q102,177)
- 23Q000 23Q000
11,023,700 - 11,023,700
- 5,298 5,298
314,086 - 314,086
9,609,837 2,129,478 18,814,586
- (�,sbz,9ss) (i9,9i�,zi9)
- 26,312 41,345
253,404 378,861
20 947 623 (5 218 463) 10 890 657
zs,�z� (sa,isi) i,�ss,aso
224,997 28,087,894 53,612,468
$ 25Q77A $ 28,033,763 $ 55,40Q948
43
THIS PAGE IS INTENTIONALLY LEFT BLANI�
aa
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXHIBIT 4-1
EXPENDITURES,AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 3Q 2017
Net change in fund balances-total govemmental funds $ 1,788,480
Amounts reported for governmental activities in the statement of activities ue different because:
Capital ouTlays ue reported as expenditures in governmental funds. However,in the
statement of activities,the cost of capital assets is allocated over their estimated useful lives
and reported as depreciation expense. In the current period,these amounts ue:
Capital assets exPended in govemmental fimds $ 14,171,483
Transfers of capital assets to enterprise funds (1,712,339)
Contdbutions from developers and federal government 2,599,996
Depreciation er.pense (1 Q099,992)
4,959,148
In the statement of activities,only the gain or loss on the sale of capital assets is reported,
whereas in the govemmental funds,the entire proceeds from the sale increase financial
resources.Thus,the cktange in net position differs from the cktange in fund balances by the
book value of the asset being disposed (295,140)
Because some revenues will not be collected for several months after the City's
fiscal yeu ends,they ue not considered"available"revenues and ue deferred
in the governmental funds. Deferred inflows of resources increased(decreased)
by these amounts trus yeu:
Property tax 3,886
Special assessments 132,021
Other (1,521,318)
(1,385,411)
Debt proceeds provide current firtancial resources to governmental funds,but
issuing debt increases long-term liabilities in the statement of net position.
Repayment of debt principal is an expenditure in the govemmental funds,
but it reduces long-term liabilities in the statement of net position and does not
affect the statement of activities.Alsq govemmental fimds report the effect of
issuance discounts and premiums when debt is first issued,whereas these amounts
ue deferred and amortized in the statement of activities.
Debt issuances including premium (11,573,083)
Debt repayments 17,615,698
6,042,615
Some items reported in the statement of activities do not require the use of
current financial resources and therefore ue not reported as expenditures
in governmental funds.These items consist of.
Decrease in accrued interest 69,200
Amortization of bond discounUpremium 328,415
Decrease in compensated absences 415,261
Deferred amount on debt refimdings (285,493)
Accounts payable WCS lawsuit 1,595,715
Pension adjustment (992,960)
Increase in net OPEB liability (380,839)
Total additional expenses 749,299
Intemal service funds ue used by management to chuge the costs of certain
activities to individual funds.The change in net position of the interrtal service funds is
reported with govemmental activities. 201,638
Cktange in net position of govemmental activities $ 12,060,629
See notes to firtancial statements.
45
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2017
Business-type Activities-Enteiprise hlinds
Sewage
Disposal Water Stormwater
Works Utility Utility
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 4,741,992 $ 5,382,777 $ 2,917,455
Receivables
Accounts 1,319,930 942,956 428,610
Accrued interest 5,327 6,974 13,924
Intergovemmental - - 1,813,375
Prepaid items 15,821 420 24,723
Inventories 141,618 764,687 -
TotalCuirentAssets 6,224,688 7,097,814 5,198,087
NONCURRENT ASSETS
Restdcted cash and pooled cash investments 1,483,826 2,767,778 13,356,624
Capital assets
Land 193,238 209,244 2Q987,529
Buildings 72,269,461 10,165,805 -
ImprovemenTs to other than buildings 47,821,452 1,807,167 107,050,905
Machinery and equipment 39,532,532 58,398,709 1,116,413
Constructionin progress 657,133 1,262,945 246,580
Accumulated depreciation (56,597,042) (25,880,662) (13,749,616)
Net Capital Assets 103,876,774 45,963,208 115,651,811
TotalNoncurrentAssets 105,360,600 48,730,986 129,008,435
Total Assets 111,585,288 55,828,800 134,206,522
DEFERRED OUTFLOWS OF RESOURCES
Pension related defeired outflows 304,720 386,891 98,478
46
EXHIBIT 5
Business-type Activities-Enteiprise Fhnds
Govemmental
Activities-
Parking Other Enteiprise Intemal Service
Facilities Fhnds Total Fhnds
$ 684,357 $ 1,752,391 $ 15,478,972 $ 3,583,402
217,077 395,562 3,304,135 60,599
868 793 27,886 2,834
- 2,353,793 4,167,168 -
- 9,902 SQ866 97,508
- - 906,305 77,204
902,302 4,512,441 23,935,332 3,821,547
330,206 - 17,938,434 -
2,759,892 36,000 24,185,903 -
62,337,568 7,336,944 152,109,778 -
3,379,337 1,482,404 161,541,265 -
2,794,827 8,521,955 110,364,436 324,248
- 4,340,757 6,507,415 -
�i6,io6,io9� �6,�9s,9�s� �ii9,iz�,aoa� �is9,i9i�
55,165,515 14,924,085 335,581,393 165,057
55,495,721 14,924,085 353,519,827 165,057
56,398,023 19,436,526 377,455,159 3,986,604
110,796 660,020 1,56Q905 496,469
47
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2017
Business-type Activities-Enteiprise hlinds
Sewage
Disposal Water Stormwater
Works Utility Utility
LIABILITIES
CURRENT LIABILITIES
Accountspayable $ 1,538,629 $ 294,871 $ 1,133,117
Accrued payroll 55,261 70,937 19,017
Loans payable-current - 1,OOQ000 -
General obligation bonds payable 571,978 221,031 909,155
Revenuebondspayable - 305,000 -
Capital loan notes payable 2,707,000 183,000 835,800
Accrued compensated absences 19,265 18,546 -
Accruedinterestpayable 149,653 221,422 158,146
Due to other funds - - -
Total Cuirent Liabilities 5,041,786 2,314,807 3,055,235
NONCURRENT LIABILITIES
Loans payable - 4,OOQ000 -
Generalobligation bondspayable 11,025,124 12,986,735 10,734,898
Revenuebondspayable - 4,827,461 28,708,105
Capital loan notes payable 67,771,676 2,811,000 36,205,468
Accrued compensated absences 148,963 277,505 10,523
Netpensionliability 1,12Q579 1,422,754 362,140
Net OPEB Liability 231,304 256,994 55,198
Total Noncurrent Liabilities 80,297,646 26,582,449 76,076,332
TotalLiabilities 85,339,432 28,897,256 79,131,567
DEFERRED INFLOWS OF RESOURCES
Pension related defeired inflows 44,508 56,510 14,384
NET POSITION
Net investment in capital assets 31,976,890 21,914,804 48,715,099
Restdcted by bond ordinance/development agreement - 566,638 2,899,908
Unrestdcted (5,470,822) 4,780,483 3,544,042
Total Net Position $ 26,506,068 $ 27,261,925 $ 55,159,049
See notes to financial statements.
48
EXHIBIT 5
(continued)
Business-type Activities-Enteiprise Fhnds
Govemmental
Activities-
Parking Other Enteiprise Intemal Service
Facilities Fhnds Total Fhnds
$ 5,267 $ 1,370,969 $ 4,342,853 $ 1,850,657
18,703 126,209 290,127 30,137
28,074 - 1,028,074 -
702,072 4,749 2,408,985 -
- - 305,000 -
- - 3,725,800 -
12,811 5,227 55,849 -
21,436 2,752 553,409 -
- 2,887 2,887 39,012
788,363 1,512,793 12,712,984 1,919,806
181,828 - 4,181,828 -
7,254,680 76,601 42,078,038 -
- - 33,535,566 -
- - 106,788,144 -
20,798 252,658 710,447 -
407,436 2,427,150 5,740,059 1,825,722
84,510 291,099 919,105 -
7,949,252 3,047,508 193,953,187 1,825,722
8,737,615 4,560,301 206,666,171 3,745,528
16,184 96,405 227,991 72,516
46,998,862 14,842,735 164,448,390 165,057
330,206 - 3,796,752 -
425,952 597,105 3,876,760 499,972
$ 47,755,020 $ 15,439,840 $ 172,121,902 $ 665,029
49
CITY OF DUBUQUE,IOWA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 3Q 2017
Business-type Activities-Enteiprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
OPERATING REVENUES
Charges for sales and services $ 12,374,927 $ 8,531,634 $ 4,049,393
Other 67,657 21,591 27,003
Total Operating Revenues 12,442,584 8,553,225 4,076,396
OPERATING EXPENSES
Employee expense 3,309,493 2,448,296 1,824,935
Utilities 462,841 585,726 18,213
Repaiis and maintenance 631,814 19Q646 57,888
Supplies and services 1,572,934 1,359,229 674,944
Insurance 105,012 94,602 24,780
Depreciation 3,36Q464 1,25Q442 1,466,614
Total Operating Expenses 9,442,558 5,928,941 4,067,374
OPERATING INCOME(LOSS) 3,000,026 2,624,284 9,022
NONOPERATING REVENUES(EXPENSES)
Intergovemmental - - 14,106
Investment eamings 32,353 35,767 147,876
Contdbutions 14,868 - -
inc��egce�enge �i,ssa,ios� �s�s,z�6� �z,i66,6ai�
Gain on disposal of assets 2,251 1,359 4Q000
NetNonoperatingRevenues(Expenses) (1,834,631) (841,150) (1,964,659)
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS 1,165,395 1,783,134 (1,955,637)
CAPITAL CONTRIBUTIONS 1,014,870 793,491 6,757,336
TRANSFERS IN - 15,548 3,437,770
TRANSFERS OUT (3,027,113) (142,884) -
CHANGE IN NET POSITION (846,848) 2,449,289 8,239,469
NET POSITION,BEGINNING 27,352,916 24,812,636 46,919,580
NET POSITION,ENDING $ 26,506,068 $ 27,261,925 $ 55,159,049
See notes to financial statements.
50
EXHIBIT 6
Business-type Activities-Enteiprise Funds
Govemmental
Other Activities-
Parking Enterprise Intemal
Facilities Funds Total Service Funds
$ 2,965,100 $ 4,65Q131 $ 32,571,185 $ 16,766,988
321,847 81,069 519,167 118,248
3,286,947 4,731,200 33,090,352 16,885,236
844,251 5,301,206 13,728,181 2,787,383
257,022 106,904 1,430,706 32,005
353,546 833,192 2,067,086 48,959
335,946 1,124,220 5,067,273 13,666,008
79,749 68,178 372,321 146,956
1,256,309 1,074,082 8,407,911 36,655
3,126,823 8,507,782 31,073,478 16,717,966
160,124 (3,776,582) 2,016,874 167,270
112,734 1,393,388 1,520,228 -
11,769 3,981 231,746 -
75,114 89,961 179,943 -
(421,033) (5,472) (5,355,525) -
- 1Q464 54,074 2,898
(221,416) 1,492,322 (3,369,534) 2,898
�6i,z9z� �z,zsa,z6o� �i,ssz,66o� i�o,i6s
635,427 4,959,696 14,16Q820 -
- 1,334,087 4,787,405 31,470
�sa6,zas) - (s,�i6,zaz) -
27,890 4,009,523 13,879,323 201,638
47,727,130 11,430,317 158,242,579 463,391
$ 47,755,020 $ 15,439,840 $ 172,121,902 $ 665,029
51
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2017
Business-type Activities-Enteiprise Funds
Sewage
Disposal Water SWrmwater Parking
Works Utiliry Utility Facilities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from cusWmers $ 12,249,411 $ 8,426,020 $ 3,99Q210 $ 2,935,022
Cash payments W suppliers for goods and services (3,435,64� (2,505,698) (4,206,853) (1,022,55�
Cash payments W employees for services (3,441,837) (2,447,445) (1,721,025) (90Q360)
Otheroperatingreceipts 67,657 21,591 27,003 321,847
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 5,439,585 3,494,468 (1,91Q665) 1,333,953
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
ltansfers from other funds - 15,548 3,437,770 -
�rar�sferscoou,err��ds (s,oz�,iis) (iaz,ssa) - (sab,zas)
Proceeds from interfund balances - - - -
Payment of interfund balances - - (549,974) -
Intergovemmental grant proceeds
NET CASH PROVIDED BY(USED FOR)
NONCAPITALFINANCINGACTNITIES (3,027,113) (127,33� 2,887,796 (546,7A5)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 2,251 1,359 4Q000 -
Acquisition and consWction of capital assets (2,027,27A) (2,794,620) (16,793,941) (1,006,58�
Proceeds from issuance of debt 2,802,754 - 9,401,003 6,388,879
Premium on debtissuance 21,006 - 64,814 201,683
Paymentofdebt (3,742,470) (876,595) (3,307,354) (7,26Q459)
Interestpaid (1,881,718) (729,399) (2,225,98� (393,234)
Contributions 1,029,738 793,491 6,757,336 71Q541
Intergovemmental grant proceeds 72Q828 112,734
NET CASH PROVIDED BY(USED FOR)CAPITAL
AND RELA1'ED FINANCING ACTNITIES (3,795,663) (3,605,764) (5,343,300) (1,246,442)
CASH FLOWS FROM INVESTING ACTIVITIES
Interestreceived 34,974 38,394 133,952 13,296
NET INCREASE(DECREASE)IN CASH AND
POOLED INVFSTMENTS (1,348,217) (20Q238) (4,232,217) (445,438)
CASH AND CASH EQUNALENTS,BEGINNING 7,574,035 8,35Q793 2Q506,296 1,46Q001
CASH AND CASH EQUNALENTS,ENDING $ 6,225,818 $ 8,15Q555 $ 16,274,079 $ 1,014,563
52
EXHIBIT 7
Business-rype Activities-Enteiprise Funds
Governmental
Other Activities-
Enterprise Intemal
Funds Total Service Funds
$ 4,605,766 $ 32,206,429 $ 16,792,338
(i,s��,a�b) (iz,�as,zz9) (is,9ii,ssi)
(s,zss,iba) (is,�as,ssi) (s,oii,ss9)
81,069 519,167 118,7A8
(z,izs,sos) b,zzs,ssb (iz,zsa)
1,334,087 4,787,405 31,470
- (3,716,7A2) -
2,887 2,887 (375,172)
- (549,974) -
1,017,993 1,017,993
2,354,967 1,542,069 (343,702)
- 43,610 2,898
(a,sso,z9s) (zb,9sz,bba) -
52,813 18,645,449 -
- 287,504 -
(sb,sz�) (is,zas,�ob) -
(3,02� (5,233,363) -
5,049,657 14,34Q763 -
833,562
�iz,sza (is,z�s,sas) z,s9s
a,azs zzs,oaa a,az�
9az,9ia (s,zss,i9� (sas,bbi)
809,477 38,70Q602 3,932,063
$ 1,752,391 $ 33,417,406 $ 3,583,402
(Continued)
53
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2017
Business-rype Activities-Enterprise Funds
Sewage
Disposal Water Stortnwater Parking
Works Utility Utiliry Facilities
RECONCII,IATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES
Operating income(loss) $ 3,OOQ026 $ 2,624,284 $ 9,022 $ 16Q124
Adjustments W reconcile operating income Qoss)W net
cash provided by(used for)operating activities
Depreciation 3,36Q464 1,25Q442 1,466,614 1,256,309
Change in assets and liabilities
(Increase)decrease in receivables (125,516) (105,614) (59,183) (3Q078)
(Increase)decrease in invenWries and prepaid items (154,998) (8,06� (7A,723) 6,720
Increase(decrease)in accounts payable (508,047) (267,429) (3,406,305) (3,013)
Increase(decrease)in acemed liabilities (SQ903) (7A,275) 1Q859 (18,058)
Increase(decrease)netpension liability 1OQ434 267,583 156,176 29,313
Qncrease)in defe�red outflows (128,37A) (187,147) (62,863) (45,413)
Increase(decrease)in deferred inflows (74,603) (78,36� (9,665) (27,96�
Increase in net OPEB liability 21,052 23,056 9,403 6,015
TotalAdjustrnents 2,43Q559 870,184 (1,91Q687) 1,173,829
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 5,439,585 $ 3,494,468 $ (1,91Q665) $ 1,333,953
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources $ 1,014,870 $ 793,491 $ 6,757,336 $ 635,427
Capital Assets financed through loan agreement $ $ S,OOQ000 $ $
Contributions of capital assets from Govemmental Activities $ $ $ $
See notes W financial statements.
54
EXHIBIT 7
(continued)
Business-type Activities-Enteiprise Funds
Govemmental
Other Activities-
Enteiprise Intemal
Funds Total ServiceFunds
� (s,��b,ssz) � z,oib,s�a � ib�,z�o
1,074,082 8,407,911 36,655
(aa,sbs) (sba,�s� (�z,iss)
(a�i) (isi,sss) s�,sab
sss,as9 (s,bz9,sos) (�,�ai)
(s,osa) (s�,aii) (zi,ssz)
49Q884 1,044,390 125,899
(szs,zia) (�as,96i) (zoz,sa9)
(iz9,b�z) (szqz�z) (izs,9sa)
32,078 91,604
i,ba�,��� a,zii,bbz (i�9,ssa)
� (z,izs,sos) � b,zzs,ssb � (iz,zsa)
� a,9s9,696 � ia,ibo,szo �
$ - $ s,000,000 $
$ - $ - $
ss
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES EXHIBIT 8
AGENCY FUNDS
JUNE 30, 2017
Agency
Funds
ASSETS
Cash and pooled cash investments $ 1,440,140
Accountsreceivable 50,378
Prepaids 16,997
Accrued interest 708
Total Assets $ 1,508,223
LIABILITIES
Accounts payable 24,722
Due to other agency 1,483,501
Total Liabilities $ 1,508,223
See notes to financial statements.
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part
of this repart The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand,Deposits, and Investxnents
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long-Terxn Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Pension Plans
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. SubsequentEvents
15. Prospective Accounting Pronouncements
16. Tax Abatements
s�
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMNI.ARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six-member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reparted in separate columns in the government-wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E of
the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to provide
solid waste management far the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible far the day-to-day operations
of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end. During
the year ended June 30, 2017, $509,049 of the Dubuque Metropolitan Area Solid Waste Agency's
charges for services were related to services provided to the City of Dubuque.
Dubuque Initiatives and Subsidiaries is a non-profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque,Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries far the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
Dubuque Convention and Visitors Bureau is a non-profit corporation organized under the laws of Iowa
and Section 501(c)(3) of the Internal Revenue Code. The Organization's purpose is to strengthen the
Dubuque area economy by competitively marketing the area as a destination for conventions, tour groups,
sporting events and individual travelers. The Organization's articles require that its board members
include one City Council member, the City of Dubuque Mayor and the City Manager. In the event of
dissolution, any assets or properly of the Organization shall be distributed to the City of Dubuque, Iowa
after paying or making provision far the payment of all liabilities of the Corporation. The City collects
hotel/motel taxes and forwards 50%to the CVB as the primary source of funds for its operations. The
CVB is presented as a governxnental fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau present their
financial information in accordance with the Financial Accounting Standards Board(FASB).
Complete financial statements far the Component Units may be obtained from the City of Dubuque's
Finance Department far the Dubuque Metropolitan Area Solid Waste Agency and Dubuque Area
Convention and Visitors Bureau, and the Economic Development Office for Dubuque Initiatives and
Subsidiaries. These offices are located at: City Hall, 50 West 13th Street, Dubuque,Iowa 52001.
sa
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing financial
interest or responsibility by the participating governments. City officials are members of the following
boards and commissions:
City of Dubuque Conference Board
Dubuque County�911 Committee
Dubuque Drug Task Force
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary governxnent and its
component units. Far the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which norxnally are supparted by taxes and intergovernxnental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for services. Likewise, the primary government is reported separately from the legally
separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segxnent are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segxnent. Program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segxnent and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segxnent. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governxnental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the governxnent-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Fows, Basis of Accounting, and Financial Statement Presentation
The governxnent-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reparted 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. Far this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period(year-end).
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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
judgxnents, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, interest, special assessments, and grants are susceptible to
accrual. Sales taxes are considered measurable and available at the time the underlying transaction
occurs, provided they are collected by the City within 60 days after year-end. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general governxnent, except those required to be accounted for in another fund.
The Tax Increment Financing Fund is used to account far the receipt of property taxes, for the
payment of projects within the tax increment financing district, and far the payment of remaining
principal and interest costs on the tax increment financing districts' long-terxn debt service.
The Debt Service Fund is used to account for the accumulation of resources and payment of
general obligation bond principal and interest from governmental resources and special
assessment bond principal and interest from special assessment levies when the governxnent is
obligated in some manner for the payment.
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account far the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account far the operations of the City's water facilities and
services.
The Stormwater Utility Fund is used to account far the operations of the City's storxnwater
services.
The Parking Facilities Fund is used to account far the operations of the City-owned parking
ramps and other parking facilities.
Additionally, the City reports the internal service fund type. Internal service funds are used to account
for general, garage, stores/printing, health insurance, and warker's compensation insurance services
provided by one department to other departments of the City on a cost-reimbursement basis. These funds
cannot be used to support City activities. Fiduciary fixnds, other than agency funds, use the economic
resources measurement focus and the full accrual basis of accounting. Agency funds use the full accrual
basis of accounting but do not have a measurement focus and therefore report only assets and liabilities.
The City reparts Agency Funds to account for assets held by the City as an agent under the cable
franchise agreement and far the Dubuque Racing Association.
so
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
As a general rule the effect of interfund activity has been eliminated from the governxnent-wide financial
statements.
Exceptions to this general rule are charges between the City's water and sewer function and various other
functions of the City. Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first,then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net
Position/Fund Balance
Deposits and Investments
The City's cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-terxn investments with original mabxrities of three months or less from the
date of acquisition.
The cash balances of most City funds are pooled and invested. Interest earned on investxnents is recorded
in the General Fund unless otherwise provided by law. Investments are stated at fair value except far the
investxnent in the Iowa Public Agency Investxnent Trust and non-negotiable certificates of deposit which
are valued at amortized cost
For purposes of the Statement of Cash Flows, all short-terxn cash investxnents that are highly liquid are
considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash
and, at the day of purchase, have a maturity date no longer than three months.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at year-end
are referred to as either "due to/from other funds" (i.e., the current portion of interfixnd loans) or
"advances to/from other funds" (i.e., the non-current partion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governxnental activities and business-type activities are reported in the government-wide
financial statements as "internal balances."
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund
balance accountin applicable governxnentalfunds to indicate thatthey are not available for appropriation
and are not expendable available financial resources.
Property tax receivable is recognized in the funds on the levy or lien date, which is the date that the tax
asking is certified by the City to the County Board of Supervisors.
Current year delinquent property tax receivable represents taxes collected by the County but not remitted
to the City at June 30, 2017, and 2017 unpaid taxes. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year far the purposes set out in the
budget for the next fiscal year.
By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for
the subsequent fiscal year. However, by statute, the tax asking and budget certification far the following
fiscal year becomes effective on the first day of that year. Although the succeeding year property tax
receivable has been recorded, the related revenue is deferred in both the government-wide and fund
financial statements and will not be recognized as revenue until the year for which it is levied.
Property taxes are levied as of July 1 on property values assessed as of January 1 of the previous year.
The tax levy is divided into two billings. The billings are due September 1 and March 1. On September
30 and March 31,the bill becomes delinquent, and penalties and interest may be assessed by the City.
Inventories and Prepaid Items
Inventories included in the governmental funds are valued at cost using the first-in first-out (FIFO)
method. The costs of governxnentalfund inventories are recorded as expenditures when consumed rather
than when purchased.
Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on
the FIFO method.
Inventories included in internal service funds are stated at the lower of cost(FIFO method) or market and
consist of consumable supplies. The cost of these supplies is recorded as an expense at the time they are
removed from inventory for use.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The costs of governmental fund prepaids are recorded as expenditures when consumed
rather than when purchased.
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the statement of net position because their use is
limited by applicable bond covenants. The "revenue bond operating" account is used to report resources
set aside to subsidize potential deficiencies from the enterprise fund's operation that could adversely
affect debt service payments. The "revenue bond sinking" account is used to segregate resources
accumulated for debt service payments over the next twelve months. The "revenue bond reserve" account
is used to report resources set aside to make up potential future deficiencies in the revenue bond sinking
account.
sz
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Certain assets of the special revenue funds and capital project funds are classified as restricted assets
because their use is limited by debt agreement, the City's cable television franchise agreement, ar Iowa
Finance Authority housing program agreement.
Certain assets of the Dubuque Metropolitan Area Solid Waste Agency are classified as restricted assets
because their use is restricted by state stabxte for certain specified uses.
Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastrucbxre assets (e.g.,
roads,bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide statement of net position and in the proprietary funds
statement of net position. Capital assets are defined by the government as assets with an initial, individual
cost of more than $100,000 for infrastructure and intangible assets, $20,000 for building assets, and
$10,000 far the remaining assets, and an estimated useful life of more than one year. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at acquisition value at the date of donation. The costs of normal maintenance and repair not
adding to the value of the asset or materially extending asset lives are not capitalized. All of the City's
infrastructure has been recorded, including infrastructure acquired priar to June 30, 1980.
Major outlays for capital assets and improvements are capitalized as projects are constructed. There was
no interest incurred during the construction phase of capital assets of business-type activities to capitalize
with the value of the assets constructed in the current year.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings 40 to 125
Improvements other than buildings 15 to 50
Machinery and equipment 2 to 30
Infrastructure and intangibles 15 to 75
Deferred Outflaws ofResources
Deferred outflows of resources represent a consumption of net position that applies to a future period(s)
and will not be recognized as an outflow of resources (expense/expenditure)until then. Deferred outflows
of resources consist of unrecognized items not yet charged to pension expense and contributions from the
employer after the measurement date but before the end of the employer's reparting period.
Compensated Absences
The City allows employees to accumulate a limited amount of earned but unused vacation and sick pay
benefits. Vacation pay is payable to employees upon retirement or termination. Sick pay is payable only
upon retirement, in which event, employees with twenty years or more of service are paid 100% of their
accrued sick leave balance over a five year period. All vacation pay and applicable sick pay benefits are
accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-terxn obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using
the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governxnental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reparted as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Pensions
For purposes of ineasuring the net pension liability, deferred outflows of resources, and deferred inflows
of resources related to pensions, and pension expense, inforxnation about fiduciary net position of the
Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System
(Systems') and additions to/deductions from the Systems'fiduciary net position have been determined on
the same basis as they are reparted by the Systems'. Far this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terxns.
Investxnents are reported at fair value.
Deferredlnflaws ofResources
Deferred inflows of resources represents an acquisition of net position that applies to a fubxre period(s)
and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues
are measurable, they are not available. Available means collected within the current year or expected to
be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of
resources in the governmental fund financial statements represent the amount of assets that have been
recognized, butthe related revenue has not been recognized since the assets are not collected within the
current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current
year. Deferred inflows of resources consist of property tax receivable and other receivables not collected
within sixty days after year end.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax
and tax increment financing receivable that will not be recognized as revenue until the year for which
they are levied, and unrecognized items not yet charged to pension expense.
NetPosition/Fund Balance
The Dubuque Metropolitan Area Solid Waste Agency's restricted net position represents outside
third-party restrictions and amounts restricted for minority interest of the Agency. The Agency is
restricted to using certain amounts for purposes specified by state stabxte. The net position restricted for
minority interest is calculated at 22.7% of unrestricted net position, based on the 1976 revenue bond
resolution authorizing the issuance of revenue bonds for the construction of the landfill. 64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
In the government-wide and proprietary fund financial statements, net position is displayed in three
components as follows:
• Net investment in capital assets: This consists of capital assets, net of accumulated depreciation,
less the outstanding balances of any bonds, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets. Net inveshnent in capital assets
excludes unspent debt proceeds. Unspent debt proceeds were $6,059,096 for the governmental
activities and $14,141,681 for business-type activities.
• Restricted: This consists of net position that is legally restricted by outside parties or by law
through constibxtional provisions or enabling legislation. Net position restricted through enabling
legislation as of June 30, 2017 consists of $250,724 for debt service and $35,104 for employee
benefits. All other restrictions are by outside parties through grants, debt agreements or donors.
• Unrestricted: This consists of net position that does not meet the definition of restricted or net
inveshnent in capital assets.
In the governmental fund financial statements,fund balances are classified as follows:
• Nonspendable: Nonspendable fund balances cannot be spent because they are not expected to be
converted to cash ar they are legally or contracbxally required to remain intact.
• Restricted: Restricted fund balances are restricted to specific purposes when constraints placed
on the use of the resources are either externally imposed by creditors, grantor or state or federal
laws or imposed by law through constitutional provisions or enabling legislation.
• Committed: Committed fund balances can be used only for specific purposes deterxnined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year-end.
• Assigned: Assigned fund balances contain self-imposed constraints of the government to be used
for a particular purpose. Intent can be expressed by the City Council or by an official or body to
which the City Council delegates the authority. The City Council has by resolution delegated the
authority to the City Manager,Budget Director, and Finance Director.
• Unassigned: Unassigned fund balances are amounts not included in the other spendable
classifications.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the governxnental
fund financial statements a flow assumption must be made about the order in which the resources are
considered to be applied. It is the governxnent's policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further, when the components
of unrestricted fund balance can be used far the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 1—SUMIVI.ARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
The budget guideline of the City of Dubuque maintains a General Fund working balance or operating
reserve of 10%of the total General Fund operating budget requirements. An operating reserve or working
balance must be carried into a fiscal year to pay operating costs until tax money, or other anticipated
revenue is received.
The State of Iowa recommends a reasonable amount for a working balance as (a) anticipated revenues for
the first three months of the fiscal year, less anticipated expenditures or (b) 5%of the total General Fund
operating budget, excluding fringes and tort liability expenses.
The City's rating agency, Moody's Investor Service, recommends a reserve balance of at least 10% for
"A"rated cities. This is based on the fact that a large partion of the revenue sources are beyond the City's
control and therefore uncertain.
Budgets and BudgetaryAccounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
Other SignificantAccounting Policies
Other significant accounting policies are set farth in the financial statements and the notes thereto.
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 2—DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2017:
America's River Project $ 3,432
Internal Service Funds:
General Service $ 989,582
The General Service deficit will be addressed during next fiscal year's reallocation of expenses.
America's River Project will be addressed next fiscal year with a transfer from the General Fund.
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS
Cash on Hand. Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year-end was $17,485 far the City and $1,200 far the
Dubuque Metropolitan Area Solid Waste Agency.
Deposits. At year-end,the City's carrying amount of deposits was $51,321,485, and the bank balance was
$53,526,773. The City's deposits in banks at June 30, 2017, were entirely covered by federal depository
insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This
chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
The carrying amount of deposits far the Dubuque Metropolitan Area Solid Waste Agency was
$12,933,283, and the bank balance was $13,079,530. The Agency's deposits in banks at June 30, 2017,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
s�
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
Investments. As of June 30, 2017, the City had the following investments and mabxrities. (The City
assumes callable bonds will not be called):
Investment Maturities(In Years)
More than
Inveshnent Type Less Than 1 1 to 5 6 to 10 10 Total
Money Market Funds-
U.S. Treasury $ 1,944,919 $ - $ - $ - $ 1,944,919
U.S. Treasury Securities 1,613,159 - - 2,702,788 4,315,947
FederalAgencyObligations 2,653,621 15,829,589 229,876 3,949,876 22,662,962
ManagedAccountsL/TCD 25Q000 243,879 - - 493,879
Corporate Stock 1OQ256 - - - 1OQ256
$ 6,561,955 $ 16,073,468 $ 229,876 $ 6,652,664 $ 29,517,963
The City and the Dubuque Metropolitan Solid Waste Agency are authorized by statute to invest public
funds in obligations of the United States government, its agencies and instrumentalities; certificates of
deposit or other evidences of deposit at federally insured depository instibxtions approved by the City
Council or Board of Trustees and the Treasurer of the State of Iowa; prime eligible bankers acceptances;
certain high rated commercial paper; perfected repurchase agreements; certain registered open-end
management investment companies; certain joint inveshnent trusts; and warrants or improvement
certificates of a drainage district
Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Perxnanent Trust
Fund.
The City uses the fair value hierarchy established by generally accepted accounting principles based on
the valuation inputs used to measure the fair value of the asset Level 1 inputs are quoted prices in active
markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are
significant unobservable inputs.
All the of the City's investments were deterxnined using the last reparted sales price at current exchange
rates. (Level 1 inputs)
InterestRate Risk. The City's investment policy limits the investment of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Risk. The City's inveshnent policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City's investments in Money Market Funds and US Agencies were
rated AAA.
Concentration of Credit Risk The City's investment policy does not allow for a prime bankers'
acceptance or commercial paper and other corporate debt balances to be greater than ten percent of its
total deposits and inveshnents. The policy also limits the amount that can be invested in a single issue to
five percent of its total deposits and investments. The City held no such inveshnents during the year.
sa
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
Custodial Credit Risk-Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the City's deposits may not be rebxrned to it The City's deposits are entirely covered by federal
depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa.
This chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
Custodial Credit Risk—Investments. For an inveshnent, this is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City had no custodial risk with regards to inveshnents,
since all investments were held by the City or its agent in the City's name.
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investxnents earnings
associated with other funds. These funds are the employee benefits, community development, road use
tax, cable TV, general construction, transit system, general service, garage service, and stores/printing
funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2017.
A reconciliation of cash and investments as shown on the governxnent-wide statement of net position for
the primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 17,485
Can}dng amount of deposits 51,321,494
Carrying amount of investments 29,517,963
Total $ 8Q856,942
Govemment-wide
Cash and pooled cash investments $ 51,967,234
Cash and pooled cash investments-temporuily restdcted 27,380,156
Cash and pooled cash investments-permanenTly reshicted 69,412
Fiduciuy
Cash and pooled cash investments 1,440,140
Total $ 8Q856,942
A reconciliation of cash and investments as shown on the government-wide statement of net position for the Dubuque
Metropolitan Solid Waste Agency follows:
Cash on hand $ 1,200
Can}dng amount of deposits 12,933,283
Total $ 12,934,483
Cash and pooled cash investments $ 2,837,257
Cash and pooled cash investments-temporuily restdcted 1 Q097,226
Total $ 12,934,483
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
A reconciliation of cash and investments as shown on the government-wide statement of net position for the Dubuque
Initiatives and Subsidiaries(December 31, 2016)follows:
Deposits $ 1,115,051
Beneficial interest in assets held by others 1,217,509
Total $ 2,332,560
Cash and pooled cash investments $ 1,115,051
Cash and pooled cash investments-temporarily reshicted 1,217,509
Total $ 2,332,560
A reconciliation of cash and investments as shown on the government-wide statement of net position for the
Dubuque Convention and Visitors Bureau(June 3Q 2017)follows:
Deposits $ 34,854
Total $ 34,854
Cash and pooled cash investments $ 3,458
Cash and pooled cash investments-temporarily reshicted 31,396
Total $ 34,854
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 4—NOTES RECEIVABLE
The City provides low interest and no interest loans to promote economic and community development,
provide opportunities for home ownership to low and moderate income citizens and improve rental
properties for low income citizens. Loans may contain a forgivable portion if recipient meets specific
conditions such as job creation for economic development or residency requirements community
development. Loans are secured by mortgage liens against the property.
At June 30, 2017 the City had the following notes receivable.
Economic Development Notes Receivable:
Original Interest Current
Balance Rate Issued Maturity Balance Portion
Downtown Rehabilitation Loan Program
Harry&Rosey's $ 30Q000 3 % 2011 7/1/2031 $ 278,241 $ 16,239
Clark Wolff 15Q000 3 2001 5/1/2022 45,580 8,735
Dubuque Museum of Art 30Q000 3 1999 7/1/2021 108,498 -
GronenAdaptive 30Q000 2 2006 5/1/2036 175,884 7,728
HJD Landlord LLC 466,000 3 2016 4/1/2036 466,000 -
Interstate Building LLP 30Q000 3 2010 9/22/2015 271,538 16,946
Lower Main Development, 30Q000
LLC 3 2006 3/1/2026 134,775 12,704
Security Partners,L.P. 30Q000 3 2001 8/1/2021 25,027 14,866
Town Clock Building Co. 30Q000 3 2001 8/1/2021 94,018 21,506
Urban Development
Action Grant
40 Main,LLC-Note A 30Q000 - 2009 7/1/2016 283,750 13,750
Downtown Housing Incentive Loan
Caradco Landlord,LLC 4,SOQ000 3 2012 6/1/2030 3,791,503 -
40 Main Real Estate Loan 156,583 - 2,009 11/1/2015 156,583 -
Sales Tax Construction
DB&T Community
Development Corporation 1,70Q000 - 2012 2/1/2032 1,70Q000 -
$ 7,531,397 $ 112,474
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 4—NOTES RECEIVABLE(continued)
Interest Current
Rate Balance Portion
Community Development Installment Loans Receivables
Residential Rehabilitation Installment Loan
Programs
First Time Home Buyers 6 % $ 440,581 $ 38,000
Local Housing Assistance Program (LHAP) 6 106,860 25,000
Homebuyers Assistance Program 6 1,992,238 259,000
Infill 6 293,627 9,000
Residential Rehab Program 6 - -
RRPReserve - 204,129 13,075
WashingtonNeighborhoodRevitalize - 46,407 3,528
The Accessibility Rehabilitation Program (for
rentals) 6 533,546 17,000
Iowa Finance Authority - 142,543 12,360
HOME Program (1) - 246,276 21,000
Historic Preservation Revolving Loan
Fund/Historic Preservation Housing Forgivable
Loan Program 6 46,568 11,000
TIF Receivables
Roasting Solutions - 289,800 -
$ 4,342,575 $ 408,963
(1)Principal payments deferred if one tenant is low income
At December 31, 2016,Dubuque Initiatives and Subsidiaries had the following notes receivable:
Lower Main Development, 4.00%,unsecured,matures August 2018 $ 26,105
City of Dubuque, 5.00%,unsecured,matures July 2023 209,901
Total notes receivable 236,006
Less: current mabxrities (28,776)
Noncurrent partion $ 207,230
�z
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 5—INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2017, include amounts due to/from other funds and advances due to/from
other funds. Interfund balances are as follows:
Due From Due To
Other Funds Other Funds
Governmental activities:
General Fund $ 627,079 $ -
Internal Service - 39,012
Nonmajor - 585,180
Business-type activities:
Salt - 2,887
$ 627,079 $ 627,079
These balances result from a time lag between the date that 1)the internal service funds goods and
services are provided or reimbursement occurs, 2)transactions are recorded in the accounting system,
and 3)payments between funds are made.
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 5—INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers far the year ended June 30, 2017, consisted of the following:
Transfers From
TaY Sewer
Increment Nonmajor Disposal Water Parking
ltansferto General Financing Governmental Works Utility Facilities Total
General $ - $ 588,688 $ 5,654,570 $ 142,884 $ 142,884 $ - $ 6,529,026
Tas incrementfinancing - - - - - 546,7A5 546,245
Debtservice 1,464,065 7,133,198 1,012,574 - - 9,609,837
Nonmajor
govemmental 286,233 1,216,523 626,722 - - - 2,129,478
Waterutility - - 15,548 - - - 15,548
SWrtnwater utility - - 553,541 2,884,229 - - 3,437,770
Nonmajor enteiprise 1,334,087 - - - - - 1,334,087
Internal service fund 31,470 - - - - - 31,470
$ 3,115,855 $ 8,938,409 $ 7,862,955 $ 3,027,113 142,884 $ 546,7A5 $ 23,633,461
Net capital assets of$1,076,912 were transferred from governmental capital assets to transit. The transfer was reported as a capital contribution in the
Transit Fund. Net capital assets of $635,427 were transferred from governxnental capital assets to parking. The transfer was reported as a capital
contribution in the Parking Fund. No amounts were reparted in the governmental funds, as the amounts did not involve the transfer of financial resources.
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that stabxte or budget requires to expend
them, (2)move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, (3)
use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary
authorizations, and(4)fund capital projects.
V
A
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 6—CAPITAL ASSETS
Capital asset activity far the year ended June 30, 2017,was as follows:
Primary Government:
Governmental activities:
Beginnivg ltansfecs ltansfers Evdivg
Balavice In O�t Increases Decreases Balavice
Capital assels,votbeivg
depreciated:
Lavd $ ]9,]62,]21 $ - $ - $ 509,680 $ (13],584) $ 80,134,Sll
Covstruc[ionivProg�ess 38,114,212 10,564,]ffi (4,005,019) 44,6]3y68
Total Capital assets,vot
bavgdepreciated 1ll,8]6y33 11,0]4,465 (4,142,613) 124,808,]85
Capital assels,bavg
depreciated:
Buildivgs 140,451y9] - - 546y19 - 140y98y26
Impcwemenls othec
Nan b�ilAvgs 23,]64,449 - - 110,143 - 23,8]4,592
Macttiveryandequipmevt 46,318y]2 - - 3,553y]6 (2,64],819) 4],225,119
Infras[rucNre 22]y44,685 3y85,]6] 231y3Q452
Total capital assels,bavg
depreciated 438,48Q103 8,196,815 (2,64],819) 444,02Q089
Less accumiilated
depreciafion for:
Buildivgs (38,593,6]2) - - (2,414,]19) - (41,008,391)
Impcwemenls othec
mann���mugs (iqozc,zov) - - (sii,cc�) - (iqss�,s�c)
MacttiveryandEquipmevt (24,4]1,3]5) - - (3,131,595) 2,283,164 (25,319,806)
Infras[rucNre (�1,333,668) (3,]]8,665) (]5,112,333)
Total accumiilated
a�,�eo�aeo� (iaa,aza,9za� �iqisc,cac� z,zss,ica �isz,vs,aoc�
Total capital assels,bavg
depreciated,vet 294,055,1]9 (1y39,831) (364,665) 291,]50,683
6ovemmental activities
capital assels,vet $ 411y32,112 $ $ $ 9,134,634 $ (4,50],2]8) $ 416,559,468
�5
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 6—CAPITAL ASSETS (continued)
Business-type activities:
Beginnivg ltansfecs ltansfers EvAvg
Balavice In O�t Increases Decreases Balavice
Capital assels,votbeivg
depreciated:
Lavd $ 23,0]0,018 $ - $ - $ 1,115,885 $ - $ 24,185y03
Covstruc[ionivprog�ess 1,888,490 2,884,219 (2,884,229) 24,15],]6] (19,538,842) 6,50],415
Total Capital assets,vot
bavgdepreciated 24y58,508 2,884,219 (2,884,229) 25,2]3,652 (19,538,842) 3Q693,318
Capital assels,bavg
depreciated:
Buildivgs 151,445,382 - - 664,396 - 152,109,]]8
Impcwemenls othec
Nan b�ilAvgs 142,5]9,438 - - 18y61,82] - 161,541,265
Macttivery and equipmevt 103 8]2 339 6 602 09] (11Q000) 110 364 436
Total capital assels,bavg
depreciated 39]89]159 26228 320 (11Q000) 424 O15 4]9
Less accumiilated
depreciafion for:
Buildivgs (49,223,618) - - (2,04],550) - (51,2]1,168)
Impcwemenls othec
Nanb�ilAvgs (28,058,636) - - (2,563,2]5) - (30,621y11)
Macttiveryandequipmevt (33,54],239) (3,]9],086) 110000 (3],234,325)
Total accumiilated
depreciafion (11Q829,493) (8,40]yll) 11Q000 (11Q12],404)
Total capital assels,bavg
depreciated,vet 28],06],666 ll,82Q409 304,888,0]5
B�sivess-type activifies
capitalassels,vet $ 312,026,1]4 $ 2,884,219 $ (2,884,229) $ 43,094,061 $ (19,538,842) $ 335,581,393
�6
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 6—CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs far the primary government as follows:
Governmental activities:
Public safety $ 1,038,511
Public works 6,022,556
Health and social services 6,975
Culture and recreation 2,207,399
Community and economic development 16,892
General government 807,658
Capital assets held by the governxnent's internal service funds are
charged to various functions based on their usage of their assets 36,655
Total depreciation expense -governmental activities $ 10,136,646
Business-type activities:
Sewage disposal works $ 3,360,464
Water utility 1,250,442
Storxnwater utility 1,466,614
Parking facilities 1,256,309
Refuse collection 319,486
Salt 27,639
Transit system 726,957
Total depreciation expense -business-type activities $ 8,407,911
��
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 6—CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency(Component Unit):
Beginnivg ltansfecs ltansfecs Evdivg
Balavice In O�t Increases Decreases Balavice
Capital assels,votbeivg
depreciated:
Lavd $ 2y52,666 $ - $ - $ - $ - $ 2y52,666
Covstruc[ionivprog�ess 3,464,862 1,086,188 (3,362,246) 1,188,804
Total Capital assets,vot
bavg depreciated 6,4ll,528 1,086,188 (3,362,246) 4,141,4]0
Capital assels,bavg
depreciated:
Buildings 106,495 - - - - 106,495
Impcwemenls othec
Nan b�ilAvgs 10,306,408 - - 3,362,246 - 13,668,654
Macttiveryandequipmevt 4,255,081 182,2]8 (19],353) 4,140,006
Total capital assels,bavg
depreciated 14,66]y84 3,544,524 (19],353) lly15,155
Less accumiilated
depreciafion for:
sw�a�o,s �sa,ozz� - - (i,9zz) - (ss5aa�
Impcwemenls othec
Nan b�ilAvgs (6,]32,144) - - (159,236) - (6,891,380)
Macttiveryandequipmevt (2,860,485) (2]2,449) 260,399 (2,8]2,535)
Total accumiilated
depreciafion (9,646,651) (433,60]) 260,399 (9,819,859)
Total capital assels,bavg
depreciated,vet 5,021,333 3,110yll (36y54) 8,095,296
D�b�q�e Metropolitav Area
Solid Waste,capital assets $ 11,438,861 $ $ $ 4,19],105 $ (3,399,200) $ 12,236,]66
Depreciation expense of$433,607 was charged W the Dubuque Metropolitan Area Solid Waste Agency.
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT
General Obligation Bonds. The City issues general obligation bonds to provide funds far the
acquisition and construction of major capital facilities. General obligation bonds have been issued for
both governmental and business-type activities. The original amount of general obligation bonds issued
in prior years was $115,450,000. During fiscal year 2017, the City issued $20,360,000 of general
obligation bonds, $20,130,000 of which was used for a current refunding bonds. The City refunded
$20,495,000 of general obligation bonds. The refunding was undertaken to reduce total debt service
payments. The results of the transaction is a reduction of$1,326,119 in fubxre debt service payments for
an economic gain of$1,148,511.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. These
bonds generally are issued as serial bonds with varying amounts of principal maturing annually and with
interest payable semi-annually. General obligation bonds outstanding at June 30, 2017, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Yeu
Corporate purpose
(taxable)Series 2008C 11/04/2008 06/O1/09-06/O1/18 525-5.50 2,465,000 430,000
Corporate purpose Series 2011A 09/O1/2011 06/O1/12-06/O1/31 2.00-4.00 6,330,000 4,995,000
Corporate purpose
(ta�.ble)Series 2011B 09/O1/2011 06/O1/13-06/O1/26 225-435 1,590,000 1,090,000
Corporate purpose Series 2012A 03/15/2012 06/O1/14-06/O1/31 2.003.00 4,380,000 3,550,000
Corporate purpose
and refund Series 2012B 03/15/2012 06/O1/13-06/O1/31 2.003.13 7,495,000 6,010,000
Corporate purpose 06/28/2012 06/O1/14-06/O1/32 2.003.90 6,965,000
(taxable)Series 2012C 5,780,000
Corporate purpose Series 2012D 06/28/2012 06/O1/14-06/O1/32 2.003.46 7,175,000 5,235,000
Corporate purpose Series 2012E 12/12/2012 06/O1/14-06/O1/32 2.003.00 3,640,000 2,835,000
Corporate purpose
(ta�.ble)Series 2012F 12/10/2012 06/O1/14-06/O1/22 1.00-220 1,035,000 665,000
Corporate purpose Series 2012H 12/10/2012 06/O1/15-06/O1/32 2.003.00 2,385,000 1,900,000
Corporate purpose(taxable)
and refund Series 2012I 12/04/2013 06/O1/13-06/O1/21 030-220 7,285,000 2,240,000
Corporate purpose Series 2014B 12/08/2014 06/O1/16-06/O1/34 3.003.65 18,835,000 18,370,000
Corporate purpose(taxable)
Series 2014C 12/08/2014 06/O1/16-06/O1/34 3.00-4.16 7,615,000 7,415,000
Corporate Purpose Series 2016A 04/04/2016 06/O1/17-06/O1/35 2.003.75 2,830,000 2,710,000
Corporate Purpose Refunding
Series2016B 04/04/2016 06/O1/16-06/O1/28 2.003.00 10,92Q000 9,160,000
Corporate Purpose Series 2016C 04/04/2016 06/O1/17-06/O1/35 2.003.13 4,145,000 3,985,000
Corporate Purpose Series 2017A 04/17/2017 06/O1/18-06/O1/30 3.00 8,495,000 8,495,000
Corporate Purpose
Refunding Seriers 2017B 04/17/2017 06/O1/18-06/O1/30 3.00 9,745,500 9,745,000
Corporate Purpose
Refunding Series 2017C 04/17/2017 06/O1/18-06/O1/30 3.00-3.45 2,120,000 2,120,000
$ 115,450,500 $ 96,730,000
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2018 $ 5,241,016 $ 1,566,461 $ 2,408,984 $ 1,385,417
2019 4,740,993 1,393,836 2,974,008 1,288,039
2020 4,776,814 1,275,964 2,993,286 1,204,008
2021 4,498,314 1,153,844 2,866,696 1,118,024
2022 3,314,338 1,033,959 2,955,662 1,033,355
2023-2027 15,149,712 3,900,162 14,705,288 3,837,028
2028-2032 12,979,909 1,665,229 11,894,980 1,593,264
2033-2035 2,323,898 144,975 2,906,106 162,413
Total $ 53,024,994 $ 12,134,430 $ 43,705,010 $ 11,621,548
Tax Increment Financing Bonds. The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges properly tax revenues from the tax increment financing districts
to pay debt service. These bonds are generally issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi-annually. Tax increment financing bonds outstanding at
June 30, 2017, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Diamond Jo Parking Ramp 10/16/07 06/Ol/11-06/Ol/37 7.50 % $ 23,025,000 $ 2Q52Q000 $ 475,000
$ 23,025,000 $ 2Q52Q000 $ 475,000
Annual debt service requirements to maturity far tax increment financing bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2018 $ 475,000 $ 1,539,000
2019 510,000 1,505,375
2020 550,000 1,465,125
2021 590,000 1,423,875
2022 635,000 1,379,625
2023-2027 3,950,000 6,110,625
2028-2032 5,675,000 4,409,375
2033-2037 8,135,000 1,918,500
Total $ 20,520,000 $ 19,751,500
ao
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
Revenue Bonds. The City also issues bonds where the City pledges income derived from the acquired or
constructed assets to pay debt service. These bonds are generally issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. Revenue bonds
outstanding at June 30, 2017, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Yeu
Water Utility Series 2008D 11/04/2008 06/O1/10-06/O1/23 3.00-5.00% $ 1,195,000 $ 590,000
Water Utility Series 2010D 09/21/2010 06/O1/12-06/O1/30 2.00-4.00 5,70Q000 4,525,000
SalesTaxIncrementa12014 06/14/2014 06/O1/23-06/O1/29 4.00-5.00 7,19Q000 7,190,000
Sales Tax Incremental 2015A 06/15/2015 06/O1/23-06/O1/29 325-4.00 20,80Q000 2Q800,000
$ 34,885,000 $ 33,105,000
The City has pledged future water customer revenues,net of specified operating expenses, to repay
$1,195,000 of water revenue bonds, issued in November 2008, to provide financing for water main
replacements and repairs, construction of water main extensions, and the acquisition and installation of a
pump station radio communication equipment and facilities. The bonds are payable solely from water
customer net operating revenues and are payable through 2023. The City has pledged future water
customer revenues,net of specified operating expenses,to repay$5,700,000 of water revenue bonds,
issued in November 2010,to provide funds to pay costs of constructing and equipping improvements,
and extensions to the municipal water system. The bonds are payable solely from water customer net
operating revenues and are payable through 2030. Net operating income is expected to equal or exceed
1.25%of the annual principal and interest payments on both bonds.
The City shall at all times prescribe,fix, and maintain and collect rates,fees and other charges for their
services and facilities furnished by the system that are fully sufficient at all times which will(a) equal at
least 125%of the debt service requirement of all bonds and parity obligations then outstanding far the
year of computation; (b) enable the City to make all required payments, if any, into the debt service
reserve fund. Far the current year,principal and interest paid and total customer net revenues (operating
revenues,plusinterestearnings,plus depreciation expense)were $497,260 and $3,910,493, respectively.
Except with respect to the Senior SRF Bonds, or any fubxre SRF bonds,the City covenants to establish
and maintain a debt service reserve fund in the amount deterxnined to be a reasonable reserve for the
payment of principal and interest on the Bonds and outstanding parity obligations, (b)the maximum
annual principal and interest requirements on the bonds and outstanding parity obligations, ar(c) 125%
of the average annual principal and interest requirements on the bonds.
During the year ended June 30, 2017,the City was in compliance with the revenue bonds' provisions.
Pursuant to the Master Resolutions, approved by the City Council, Sales Tax Increment Revenues
received as a result of the Flood Mitigation Program under the Award Agreement shall be applied solely
for the benefit of the holders of the Series 2015A Bonds $20,800,000, and outstanding from time to time,
any other Senior Bonds,the Series 2014 Bonds, $7,190,000 and any other second lien bonds that may be
issued in the future under the Master Resolution. The bonds provide financing for costs for acquisition,
construction and installation and equipping of the Bee Branch Watershed Flood Mitigation Project.
The total principal and interest remaining to be paid on all revenue bonds is $43,694,305.
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
The City issued $7,190,000 Sales Tax Increment Revenue Bonds, June 2014 and $20,800,000 June 2015,
for the purpose of paying costs of the acquisition, construction and installation and equipping of he Bee
Branch Watershed Flood Mitigation Project The master resolution establishes a Debt Service Reserve
Account that may secure one or more series of Bonds. Upon the issuance of the Series 2015A Bonds a
deposit of$2,080,000 was made into the Debt Service Reserve Account, and the Series 2015A Bonds
shall be secured by amounts held in the Debt Service Reserve Account. The Series 2014 Bonds are
revenue bonds secured by and payable as provided in the Master Resolution from all Pledged Revenues
which are pledged under the Master Resolution to the payment of the principal and interest of the Series
2014 Bonds. There shall be no deposit made into the Debt Service Reserve Account for Series 2014
Bonds, there is no Debt Service Reserve Requirement applicable to the Series 2014 Bonds, and Series
2014 Bonds shall not be secured by any amounts held in the Debt Service Reserve Account.
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Business-type Activities
June 30 Principal Interest
2018 $ 305,000 $ 955,878
2019 315,000 945,288
2020 330,000 934,308
2021 340,000 922,698
2022 355,000 910,598
2023-2027 17,410,000 4,607,244
2028-2031 14,050,000 1,313,291
Total $ 33,105,000 $ 10,589,305
Notes Payable. Notes payable have been issued to provide funds for economic development and far the
purchase of capital assets. Notes payable at June 30, 2017, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Yeu Portion
Theisen Supply 11/22/06 12/31/08-06/30/18 8.00 % $ 810,323 $ 121,116 $ 121,115
40MainLLC 08/06/09 06/O1/11-06/Ol/37 6.50 690,529 330,647 74,765
$ 1,500,852 $ 451,763 $ 195,880
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2018 $ 195,880 $ 28,381
2019 79,827 15,582
2020 85,174 10,235
2021 90,882 4,528
Total $ 451,763 $ 58,726
az
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
Capital Loan Notes. Revenue capital loan notes have been issued far the planning and construction of
sewer, storxnwater, and water capital projects through the State of Iowa State Revolving Loan Funds. The
City issued an additional $7,388,799 of SRF debt in 2017 as part of the Bee Branch storxnwater
construction project and $2,150,596 for green alley projects reducing stormwater run off. The City has
pledged income derived from the acquired or constructed assets to pay debt service. Capital loan notes
payable at June 30, 2017, are as follows:
Final Amount
Date Maturity Interest Amount Outstanding Current
Purpose Authorized Date Rates Authorized EndofYeu Portion
Drinldng Water 10/18/07 06/O1/28 325 % $ 1,037,000 $ 571,000 $ 44,000
C1eanWater O1/14/09 06/O1/28 325 1,827,000 1,152,000 89,000
North Catfish Creek Stormwater O1/13/10 06/O1/30 325 800,000 576,000 36,000
North Catfish Creek Sewer O1/13/10 06/O1/30 325 912,000 657,000 41,000
Water Meter Replacement 02/12/10 06/O1/30 325 7,676,000 2,423,000 139,000
Water Meter Replacement Sewer 02/12/10 06/O1/30 325 3,058,000 2,423,000 139,000
Upper Bee Branch Sewer 10/27/10 06/O1/41 325 7,850,000 6,819,000 192,000
Water and Resource Recovery Center 08/18/10 06/O1/39 2.00 74,285,000 64,867,676 2,391,000
Cogeneration OS/17/13 06/O1/33 2.00 3,048,000 2,531,000 136,000
Bee Branch Stormwater 02/18/14 06/O1/33 2.00 1,029,000 101,720 46,000
Bee Branch Stormwater 06/19/15 06/O1/37 2.00 29,541,000 28,392,547 472,800
$ 131,063,000 $ 11Q513,943 $ 3,725,800
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year Business-type Activities
June 30 Principal Interest
2018 $ 3,725,800 $ 2,336,359
2019 4,337,999 2,303,227
2020 4,403,721 2,208,848
2021 3,696,292 2,112,063
2022 4,563,000 2,029,142
2023-2027 24,384,000 8,619,789
2028-2032 25,751,000 5,807,103
2033-2037 31,356,455 2,637,618
203 8-2041 8,295,676 126,230
Total $ 110,513,943 $ 28,180,379
At June 30, 2017,the City of Dubuque had $1,357,010 of capital loan note funds available. These funds are
available to the City by filing a disbursement request with the State of Iowa. The City expects to use the
remaining available funds in fiscal year 2018. The Sewer Utility revenue capital loan notes covenants
include a requirement far the utility to produce net revenue of at least 110%of the current year debt service
requirement
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
Loans Payable. Loans payable have been issued to fund several City projects. Loans payable at June 30,
2017, are as follows:
Amount Amount
Date of Interest Origirtally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Yeu Portion
PukingLotPurcktase 07/08/08 Ol/O1/09-07/Ol/23 5.0 % $ 400,000 $ 209,902 $ 28,074
IowaFinanceAuthority 08/26/11 06/O1/20-06/Ol/30 3.0 4,500,000 3,90Q000 18,000
Bowling&Beyond Inc. 07/25/12 12/04/12-12/04/32 - 1,000,000 75Q000 50,000
WestemRuralWater 12/27/16 12/O1/17-12101/21 3.0 5,000,000 S,OOQ000 1,000,000
$ 10,900,000 $ 9,859,902 $ 1,096,074
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2018 $ 68,000 $ 117,000 $ 1,028,074 $ 149,463
2019 68,540 116,460 1,029,495 128,727
2020 69,096 115,904 1,030,988 97,234
2021 235,513 115,331 1,032,557 65,665
2022 241,078 109,766 1,034,205 34,017
2023-2027 1,294,895 459,325 54,583 2,752
2028-2032 2,672,878 197,318 - -
Total $ 4,650,000 $ 1,231,104 $ 5,209,902 $ 477,858
aa
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7-LONGTERM DEBT (continued)
Changes in Long-term Liabilities. Long-term liability activity far the year ended June 30, 2017, was as
follows:
Balance
Beginning Balance End Due Wittun
of Yeu Additions Reductions of Yeu One Yeu
Governmerrtal ac[ivities:
Generalobligationbonds $ 58,076,184 $ 11,253,700 $ (16,304,890) $ 53,024,994 $ 5,241,016
Unaccretedpremium 917,720 319,384 (405,284) 831,820 -
un�o�tizeaa�s�o�� (iza,o9z� - 6�,99� �s6,o9s) -
Totalgeneralobligationbonds 58,869,812 11,573,084 (16,642,177) 53,800,719 5,241,016
Tax increment firtancing bonds 20,96Q000 - (440,000) 20,520,000 475,000
Unamortizeddiscounts (195,182) - 8,872 (186,310) -
Total tax increment firtancing bonds 20,764,818 - (431,128) 20,333,690 475,000
Notes payable 625,429 - (173,666) 451,763 195,880
Loanspayable 5,347,142 - (697,142) 4,650,000 68,000
Compensatedabsences 5,906,104 2,627,426 (3,042,687) 5,490,843 443,005
Netpensionliability 36,085,349 10,715,642 - 46,800,991 -
Net OPEB liability 3,809,858 38Q839 - 4,190,697 -
Total governmental ac[ivities $ 131,408,512 $ 25,296,991 $ (20,986,800) $ 135,718,703 $ 6,422,901
Businesstype ac[ivities:
Generalobligationbonds $ 46,338,822 $ 9,106,300 $ (11,740,110) $ 43,705,012 $ 2,408,985
Unaccretedpremium 563,016 289,152 (34,461) 817,707 -
un�o�tizea a�s�o�� (9s,s6s� - s9,669 �ss,69� -
Total general obligation bonds 46,806,473 9,395,452 (11,714,902) 44,487,023 2,408,985
Revenue bonds 33,40Q000 - (295,000) 33,105,000 305,000
Unaccretedpremium 865,888 - (66,360) 799,528 -
un�o�tizea a�s�o�� (bs,ss9� - a,9z� �6s,96z) -
Total revenue bonds 34,196,999 - (356,433) 33,840,566 305,000
Capitalloannotes 104,156,551 9,539,393 (3,182,000) 11Q513,944 3,725,800
Loans payable 236,621 S,OOQ000 (26,719) 5,209,902 1,028,074
Compensatedabsences 903,179 396,526 (533,409) 766,296 55,849
Netpensionliability 4,695,669 1,044,390 - 5,740,059 -
Net OPEB liability 827,501 91,604 - 919,105 -
TotalbusinessTypeac[ivities $ 191,822,993 $ 25,467,365 $ (15,813,463) $ 201,476,895 $ 7,523,708
For the governxnental activities, compensated absences, net pension liability and net OPEB liability are
generally liquidated by the General Fund, Community Development Fund, and Section VIII Housing Fund.
as
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
Dubuque Metropolitan Area Solid Waste Agency
General Obligation Bonds. Dubuque County, Iowa issued a general obligation landfill facilities bond to
provide funds for the acquisition and construction of major capital facilities.
The Dubuque Area Metropolitan Solid Waste Agency will reimburse Dubuque County for interest and
principal payments from operating revenue. These bonds generally are issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. The amount outstanding as
of June 30, 2017 is as follows:
Amount Amount
Interest Originally Outstanding
Purpose Date of Issue Maturity Date Rate Issued End of Year
LandfillFacility 12/30/2014 06/O1/16-06/O1/34 2.0-4.0 % $ 4,500,000 $ 4,125,000
LandfillFacility 12/28/2016 06/O1/17-06/O1/36 3.0 5,100,000 5,000,000
$ 9,600,000 $ 9,125,000
Annual debt service requirements to maturity of the general obligation bond is as follows:
Fiscal Year June 30 Principal Interest
2018 $ 395,000 $ 272,559
2019 400,000 262,659
2020 410,000 250,659
2021 425,000 238,359
2022 435,000 225,609
2023-2027 2,385,000 926,963
2028-2032 2,770,000 563,548
2033-2036 1,905,000 135,595
Total $ 9,125,000 $ 2,875,951
Changes in Long-Term Liabilities. Long terxn liability activity far the year ended June 30, 2017 is as
follows:
Balance
Beginning Balance Due Within
of Year Additions Reductions End of Year One Year
Generalobligationbond $ 4,315,000 $ S,lOQ000 $ (29Q000) $ 9,125,000 $ 395,000
Unaccretedpremium 132,132 118,065 (6,954) 243,243 -
Totalgeneralobligationbond $ 4,447,132 $ 5,218,065 (296,954) $ 9,368,243 $ 395,000
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 7—LONGTERM DEBT (continued)
Dubuque Initiatives and Subsidiaries. At December 31, 2016,Dubuque Initiatives and Subsidiaries had the
following notes and loan payable:
Note payable to Dubuque Bank&Trust(Loan A), due in
monthly interest-only payments through June 2029; at which time
unpaid interest and principal are due. Interest rate through June 2018
is the greater of Federal home Loan Bank rate plus 2.75%or 5.00%
with a ceiling of 7.00%(effective rate of 5%at December 31, 2016).
Thereafter the interest rate is the Federal Home Loan Bank rate
plus 2.75%.* $ 5,294,384
Note payable to Dubuque Bank&Trust(Loan B), due in monthly
installments as set farth in the Loan Agreement, including interest
at the greater of Federal Home Loan Bank rate plus 2.75%or
5%with a ceiling of 7%(effective rate of 5%at December 31, 201�.
Unpaid interest and principal due June 2019.* 347,094
5,641,478
Less: Currentmaturities (433.504)
Non-current liability $ 5.207.974
The following is a schedule by years of the principal maturities of long-term debt obligations for the years
ending June 30:
2017 $ 433,504
2018 489,518
2019 508,955
2020 529,162
2021 550,173
Thereafter 3.130.166
� 5.641.478
* -Notes are collateralized by substantially all Organization assets, a collateral assignment of tax credit
purchase agreement dated June 22, 2009, a collateral assignment of fund loan documents dated June 22, 2009
and are guaranteed by the City of Dubuque.
In January 2017, the Organization refinanced the long-term debt. The refinanced note is due in monthly
installments of $56,995, including interest at 3.90%. Unpaid principal and interest are due January 2022.
The note is collateralized by an assignment of rents, a commercial pledge and substantially all assets of the
Organization.
During 2016, the Organization satisfied all tax credit compliance requirements. As such, the Organization
exercised its option and obtained the outstanding units of Master Tenant held by outside investors.
Concurrently, notes receivable of$9,697,427 due from an entity owner by the outside investors was forgiven.
RBI was dissolved and RBPs assets and liabilities was transferred to DL QALICB changed its name to
Roshek Building, LLC ("RBL") and Master Tenant was dissolved and its assets and liabilities were
transferred to RBL. At that time, loans of $19,700,000 owed to the outside investors were forgiven. At
December 31, 2016, the remaining entities are DI and RBL, which now includes all operations of the Roshek
Building, of which DI is the sole member. 87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 8—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 for which the governxnent carries commercial insurance
purchased from independent third parties and participates in a local government risk pool. The City
assumes liability for deductibles and claims in excess of coverage limitations.
The City has established a Health Insurance Reserve Fund for insuring benefits provided to City
employees and covered dependents which is included in the Internal Service Fund Type. Health benefits
were self-insured up to an individual stop-loss amount of $120,000, and an aggregate stop-loss of
$12,336,455 for 2017. Coverage from a private insurance company is maintained for losses in excess of
the stop-loss amount. All claims handling procedures are performed by a third-party claims administrator.
Incurred but not reparted claims have been accrued as a liability based upon the claims administrator's
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense.
The City has established a Warkers' Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Warkers' compensation benefits were
self-insured up to a specific stop-loss amount of $600,000, and an aggregate-stop loss consistent with
statutory limits for 2017. Coverage from a private insurance company is maintained for losses in excess
of the stop-loss amount. All claims handling procedures are performed by a third-party claims
administrator. Incurred but not reported claims have been accrued as a liability based upon the claims
administrator's estimate. Settled claims have not exceeded commercial coverage in any of the past three
fiscal years. The estimated liability does not include any allocated or unallocated claims adjustment
expense. The City purchases private insurance to include sworn Police Officers and Fire Fighters
medical claims under a self-insured retention of$750,000 for each accident.
All funds of the City participates in both programs and makes payments to the Health Insurance Reserve
Fund and the Warkers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior and current year claims. The claims liability of $704,944 in the Health Insurance Reserve
Fund and $1,118,237 in the Warkers' Compensation Reserve Fund is based on the requirements of
Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims
be reported if inforxnation priar to the issuance of the financial statements indicates that it is probable
that a liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the
fiscal years ended June 30, 2017 and 2016, are summarized as follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 3Q 2015 $ 504,512 $ 1,454,193
Claims and changes in estimates during fiscal year 2016 11,71Q806 (152,553)
Claim payments (11,419,937) (261,73�
Liabilities at June 3Q 2016 795,381 1,039,904
Claims and changes in estimates during fiscal year 2017 11,22Q181 1,153,265
Claim payments (11,31Q618) (1,074,932)
Liabilities at June 3Q 2017 $ 704,944 $ 1,118,237
88
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 8—RISK MANAGEMENT (continued)
The City is a member in the Iowa Communities Assurance Pool (Pool), as allowed by Chapter 670.7 of the
Code of Iowa. The Pool is a local government risk-sharing pool whose 753 members include various
governmental entities throughout the State of Iowa. The Pool was formed in August 1986 far the purpose of
managing and funding third-party liability claims against its members. The Pool provides coverage and
protection in the following categories: general liability, automobile liability, automobile physical damage,
public officials' liability, police professional liability, property, inland marine, and boiler/machinery. The
City acquires automobile physical damage coverage through the Pool. All other property, inland marine, and
boiler/machinery insurance is acquired through commercial insurance. There have been no reductions in
insurance coverage from prior years.
Each member's annual casualty contributions to the Pool fund current operations and provide capital. Annual
operating contributions are those amounts necessary to fund, on a cash basis, the Pool's general and
administrative expenses, claims, claims expenses, and reinsurance expenses due and payable in the current
year, plus all or any partion of any deficiency in capitaL Capital contributions are made during the first six
years of inembership and are maintained not to exceed 300 percent of the total current members' basis rates
or to comply with the requirements of any applicable regulatory authority having jurisdiction over the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual operating
contributions which are necessary to fund, on a cash basis, the Pool's general and administrative expenses
and reinsurance premiums, all of which are due and payable in the current year, plus all or any portion of any
deficiency in capital. Any year-end operating surplus is transferred to capital. Deficiencies in operations are
offset by transfers from capital and, if insufficient, by the subsequent year's member contributions. The City
has property insurance coverage in addition to the Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pooL The City's annual contributions to the Pool far the
year ended June 30, 2017,were $503,078.
The Pool uses reinsurance and excess risk-sharing agreements to reduce its exposure to large losses. The Pool
retains general, automobile, police professional, and public officials' liability risks up to $350,000 per claim.
Excess coverage is provided for claims exceeding $350,000 under various reinsurance agreements. Property
and automobile physical damage risks are retained by the Pool up to $250,000 each occurrence, each
location, with excess coverage reinsured on an individual-member basis.
The Pool's Iowa Risk Management Agreement with its members provides that in the event a casualty claim
or series of claims exceeds the amount of risk-sharing protection provided by the member's risk-sharing
certificate, or in the event that a series of casualty claims ez�hausts total members' equity plus any reinsurance
and any excess risk-sharing recoveries, then payment of such claims shall be the obligation of the respective
individual member. As of June 30, 2017, settled claims have not exceeded the risk pool or reinsurance
company coverage since the Pool's inception.
as
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 8—RISK MANAGEMENT (continued)
Members agree to continue membership in the Pool through the Iowa Risk Management Agreement for a
period of not less than one full year. After such period, a member who has given 60 days' prior written notice
may withdraw from the Pool. Upon withdrawal, a formula set farth in the Pool's intergovernxnental contract
with it's members is applied to determine the amount(if any)to be refunded to the withdrawing member.
NOTE 9—COMMITMENTS AND CONTINGENT LIABILITIES
Grants
The City has received financial assistance from numerous federal and state agencies in the form of grants and
entitlements. The disbursement of funds received under these programs generally requires compliance with
terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any
disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the
opinion of management, liabilities resulting from disallowed claims, if any, will not have a material effect on
the City's financial position as of June 30, 2017.
Litigation
The City Attorney reparted that various claims and lawsuits were on file against the City.
The City Attorney has estimated that all potential settlements and lawsuits against the City not covered by
insurance would not materially affect the financial position of the City. The City has authority to levy
additional taxes (outside the regular limit)to cover uninsured judgxnents against the City.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2017. The City has additional commitments for signed construction contracts of
$17,825,337 as of June 30, 2017. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
Dubuque Metropolitan Area Solid Waste Agency has recognized a liability only that portion of construction
contracts representing construction completed through June 30, 2017. DMASWA has an additional
commitment for a signed construction contract of$2,349,482 as of June 30, 2017. This commitment will be
funded by bond proceeds.
so
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB)
The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits other Than Pensions prospectively during the year ended June 30, 2009.
Plan Descrivtion - The City operates a single-employer retiree benefit plan which provides postemployment
benefits for eligible participants enrolled in the City-sponsored plans, which include the employees of the
Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does not issue a stand-alone
financial report. The benefits are provided in the form of:
An implicit rate subsidy where pre-65 retirees receive health insurance coverage by paying a combined
retiree/active rate for the self-insured medical and prescription drug plan.
An explicit rate subsidy where the City pays the full cost of a $1,000 policy in the fully-insured life insurance
plan.
To be eligible far the health insurance coverage, retirees must be at least 55 years old, have completed 4
years of service, and be vested with either the Iowa Public Employee's Retirement System (IPERS) ar the
Municipal Fire and Police Retirement System of Iowa (1VIF'PRS�. In addition to the health eligibility
coverage requirements, one must have belonged to a bargaining group to be eligible for life insurance
benefits. There are approximately 535 active and 79 retired members in the plan, as of most recent acbxarial
valuation report.
Fundin¢Policv-The contribution requirements of plan members are established and may be amended by the
City. The City currently finances the retiree benefit plan on a pay-as-you-go basis.
Annual OPEB Cost and Net OPEB Oblieation - The City's annual OPEB cost is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover norxnal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed
30 years.
The following table shows the components of the City's annual OPEB cost far the year ended June 30, 2017,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 571,435
Interest on net OPEB obligation 212,675
Adjushnent to annual required contribution (277,648)
Annual OPEB cost 506,462
Contributions made,net of retiree contributions (23,994)
Increase in net OPEB obligation 482,468
Net OPEB obligation, beginning of year 4,726,101
Net OPEB obligation, end of year $ 5,208,569
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2016. The end of
year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially
determined funding requirements and the actual contributions far the year ended June 30, 2017.
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
For the year ended June 30, 2017, the City paid $519,898 for retiree claims. Plan members eligible for
benefits contributed $495,904 or 100% of the premium costs. The net resulted in City contributions of
$23,994.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB
obligation as of June 30, 2017 are summarized as follows:
Percentage of Net
Annual AnnuaIOPEB OPEB
Year Ended OPEB Cost Cost Contributed Obligation
June 30, 2017 $ 506,462 5 % $ 5,208,569
June 30, 2016 467,960 0 4,726,101
June 30, 2015 466,758 1 4,221,176
Funded Stabxs and Fundin¢Pro¢ress - As of July 1, 2016, the most recent actuarial valuation date far the
period July 1, 2016 through June 30, 2017, the actuarial accrued liability was $5,187,750, with no
actuarial value of assets,resulting in an unfunded acbxarial accrued liability (UAAI,) of$5,187,750. The
covered payroll(annual payroll of active employees covered by the plan)was approximately $33,775,619
and the ratio of the UAAI, to covered payroll was 15%. As of June 30, 2017, there were no trust fund
assets.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
fubxre. Examples include assumption about future employment, mortality, and the health care cost trend.
Actuarially deterxnined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented
as Required Supplementary Inforxnation in the section following the Notes to Financial Statements,
presents multiyear trend information about whether the acbxarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reparting purposes are based on the plan as understood by the
employer and the plan members and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that
point The actuarial methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in acbxarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations.
As of the July 1, 2016 actuarial valuation date, the projected unit credit actuarial cost method was used.
The actuarial assumptions include a 4.5% discount rate based on the City's funding policy. The
projected annual medical trend rate (inflation rate) is 7%. The ultimate medical trend rate is 5%
beginning in year 2027. The underlying inflation rate is 3%.
Mortality rates are from the RP2014 Group Annuity Mortality Tables, applied on a gender-specific basis.
Annual retirement and terxnination probabilities were developed consistent with the City's experience
and the IPERS and MFPRSI retirement patterns. Annual bxrnover rates were based on Scale T-2 of the
actuary's pension handbook.
Projected claim costs of the medical plan are $11,955-$17,015 per year for retirees depending on the age
of retiree. The UAAI, is being amortized as a level percentage of pay on an open basis over 30 years.
sz
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS
Iowa Public Employees Retirement System IPERS
Plan Descrivtion—IPERS membership is mandatory for employees of the City, except far those covered
by another retirement system. Employees of the City are provided with pensions through a cost-sharing
multiple employer defined benefit pension plan administered by Iowa Public Employees' Retirement
System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at
7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.ipers.or¢.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits — A Regular member may retire at norxnal retirement age and receive monthly benefits
without an early-retirement reduction. Norxnal retirement age is age 65, anytime after reaching age 62
with 20 or more years of covered employment, or when the member's years of service plus the member's
age at the last birthday equals or exceeds 88, whichever comes first. These qualifications must be met on
the member's first month of entitlement to benefits. Members cannot begin receiving retirement benefits
before age 55. The forxnula used to calculate a Regular member's monthly IPERS benefit includes:
• A multiplier based on years of service.
• The member's highest five-year average salary, except members with service before June 30,
2012 will use the highest three-year average salary as of that date if greater than the highest
five-year average salary.
If a member retires before normal retirement age, the member's monthly retirement benefit will be
permanently reduced by an early-retirement reduction. The early-retirement reduction is calculated
differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the
reduction is 0.25%for each month that the member receives benefits before the member's earliest normal
retirement age. For service earned starting July 1, 2012, the reduction is 0.50%for each month that the
member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same
far the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began
receiving benefits priar to July 1990 receive a guaranteed dividend with the regular November benefit
payments.
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Disabilitv and Death Benefits - A vested member who is awarded federal Social Security disability or
Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability
benefits are not reduced for early retirement If a member dies before retirement, the member's
beneficiary will receive a lifetime annuity or a lump-sum payment equal to the present actuarial value of
the member's accrued benefit or calculated with a set forxnula, whichever is greater. When a member dies
after retirement, death benefits depend on the benefit option the member selected at retirement
Contributions - Contribution rates are established by IPERS following the annual actuarial valuation,
which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. State
statute limits the amount rates can increase or decrease each year to 1 percentage point. IPERS
Contribution Rate Funding Policy requires that the acbxarial contribution rate be deterxnined using the
"enh-y age norxnal" actuarial cost method and the actuarial assumptions and methods approved by the
IPERS Investment Board. The acbxarial contribution rate covers normal cost plus the unfunded actuarial
liability payment based on a 30-year amartization period. The payment to amortize the unfunded
actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization
Method adopted by the Investment Board.
In fiscal year 2017, pursuant to the required rate, regular members contributed 5.95%of covered payroll
and the City contributed 8.93%for a total rate of 14.88%.
The City's total contributions to IPERS far the year ended June 30, 2017 were $2,227,787. The Dubuque
Metropolitan Area Solid Waste Agency's total contributions to IPERS far the year ended June 30, 2017
were $61,413.
Citv Specific IPERS Disclosures
Net Pension Liabilities. Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2017, the City reported a liability of $21,570,715 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2016, and the total pension liability used to calculate the net pension liability was deterxnined by an
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions to IPERS relative to the contributions of all IPERS participating employers.
At June 30, 2016, the City's collective proportion was .34274%which was a decrease of 0.0086%from
its proportion measured as of June 30, 2015.
For the year ended June 30, 2017, the City recognized pension expense of$2,405,785. At June 30, 2017,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
sa
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 190,637 $ 257,430
Changes of assumptions 329,102 -
Net difference between projected and acbxal 3,073,057 -
earnings on IPERS' investxnents
Changes in propartion and differences between
City's contributions and City's propartionate share
of contributions 45,020 599,318
City contributions subsequent to the
measurement date 2,227,787 -
Total $ 5,865,603 $ 856,748
$2,227,787 reported as deferred outflows of resources related to pensions resulting from the City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2018. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2018 $ 263,158
2019 263,158
2020 1,454,079
2021 831,207
2022 (30,534)
$ 2,781,068
Sensitivitv of the Citv's Provortionate Share of the Net Pension Liabilitv to Chanees in the Discount
Rate- The following presents the City's proportionate share of the net pension liability calculated using
the discount rate of 7.50%, as well as what the City's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1.00%lower(6.50%) or 1.00%higher(8.50%)
than the current rate.
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
1% Discount 1%
Decrease Rate Increase
(6.5%) (7.5%) (8.5%)
City's propartionate share of
the net pension liability: $ 34,897,492 $ 21,570,094 $ 10,321,594
Dubuque Metropolitan Area Sold Waste Aaencv Specific(DMASWA) IPERS Disclosures
Net Pension Liabilities. Pension Exvense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2017, the DMASWA reported a liability of$594,618 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2016, and the total pension liability used to calculate the net pension liability was deterxnined by an
actuarial valuation as of that date. The DMASWA's proportion of the net pension liability was based on
the DMASWA's share of contributions to the pension plan relative to the contributions of all IPERS
participating employers. At June 30, 2017, the DMASWA's collective propartion was 0.009672%which
was a decrease of 0.000057%from its proportion measured as of June 30, 2015.
Far the year ended June 30, 2017, the DMASWA recognized pension expense of$66,320. At June 30,
2017, the DMAS WA reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred
Deferred Outflows Inflows
of Resources of Resources
Differences between expected and
actualexperience $ 5,255 $ 7,097
Changes of assumptions 9,072 -
Net difference between projected and actual 84,714 -
earnings on IPERS' investxnents
Net changes in proportion and differences between
City's contributions and City's propartionate share
of contributions 1,241 16,521
City contributions subsequent to the
measurement date 61,413 -
Total $ 161,695 $ 23,618
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
$61,413 reported as deferred outflows of resources related to pensions resulting from the Agency
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2017. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2018 $ 7,247
2019 7,247
2020 40,042
2021 22,890
2022 (762)
$ 76,664
Sensitivity of the A¢enc, '�portionate Share of the Net Pension Liability to Chan¢es in the Discount
Rate - The following presents the Agency's proportionate share of the net pension liability calculated
using the discount rate of 7.50%, as well as what the Agency's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1.00%lower(6.50%) or 1.00%higher
(8.50%)than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.50%) (7.50%) (8.50%)
Agency's propartionate share of
the net pension liability: $ 962,010 $ 594,618 $ 284,533
There were no non-employer contributing entries at IPERS.
Acbxarial Assumptions - The total pension liability in the June 30, 2016, acbxarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation 3.00%per annum
(effective June 30, 2014)
Rates of salary increase 4.00%to 17.00%, average, including inflation.
(effective June 30, 2010) Rates vary by membership group.
Long-term Investment rate of return 7.50%, compounded annually,net of inveshnent
(effective June 30, 199� expense, including inflation.
Wage Growth 4.00%per annum based on 3.00%
(effective June 30, 1990) inflation and 1.00%real wage inflation
s�
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of actuarial
experience studies with dates corresponding to those listed above.
Mortality rates were based on the RP-2000 Mortality Table for Males or Females, as appropriate, with
adjustments for mortality improvements based on Scale AA.
The long-term expected rate of return on IPERS'was determined using a building-block method in which
best-estimate ranges of expected future real rates (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long-terxn expected rate of return by weighting the expected future real rates of rebxrn by the target
asset allocation percentage and by adding expected inflation. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Long-Term Expected
Asset Class Allocation Real Rate of Rebxrn
Core Plus Fixed Income 28 % 1.90%
Domestic Income 24 5.85
International Equity 16 6.32
Private Equity/debt 11 10.31
Real Estate 8 3.87
Credit Opportunities 5 4.48
TIPS 5 1.36
Other Real Assets 2 6.42
Cash 1 (0.26)
Total 100 %
Discount Rate - The discount rate used to measure the total pension liability was 7.50%. The projection
of cash flows used to determine the discount rate assumed that employee contributions will be made at
the contractually required rate and that contributions from the City will be made at contractually required
rates, acbxarially determined. Based on those assumptions, the IPERS' fiduciary net position was
projected to be available to make all projected future benefit payments of current active and inactive
employees. Therefore, the long-term expected rate of rebxrn on IPERS' investments was applied to all
periods of projected benefit payments to determine the total pension liability.
IPERS' Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued IPERS financial report which is available on IPERS' website at
www.ivers.or¢.
Pavables to IPERS -At June 30, 2017,the City reported payables to the defined benefit pension plan of
$30,640 for legally required employer contributions. There were no legally required employee
contributions which had been withheld from employee wages but not yet remitted to IPERS.
sa
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Municipal Fire and Police Retirement System of Iowa(MFPRSI)
Plan Description—MFPRSI membership is mandatory for fire fighters and police officers covered by the
provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions
through a cost-sharing multiple employer defined benefit pension plan administered by MFPRSI.
MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake
Drive, Suite#201, West Des Moines, Iowa 50266 or at www.mfprsi.ore.
MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules
thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents.
The following brief description is provided for general inforxnational purposes only. Refer to the plan
documents for more information.
Pension Benefits - Members with 4 or more years of service are entitled to pension benefits beginning at
age 55. Full service retirement benefits are granted to members with 22 years of service, while partial
benefits are available to those members with 4 to 22 years of service based on the ratio of years
completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a
refund of their contribution only, with interest,far the period of employment
Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3
years becomes the member's average final compensation. The base benefit is 66% of the member's
average final compensation. Members who perform more than 22 years of service receive an additional
2%of the member's average final compensation for each additional year of service, up to a maximum of
8 years. Survivor benefits are available to the beneficiary of a retired member according to the provisions
of the benefit option chosen, plus an additional benefit for each child. Survivor benefits are subject to a
minimum benefit for those members who chose the basic benefit with a 50%surviving spouse benefit.
Active members, at least 55 years of age, with 22 or more years of service have the option to participate
in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member
who is otherwise eligible to retire and commence benefits opts to continue to wark. A member can elect a
3, 4, or 5 year DROP period. By electing to participate in DROP, the member is signing a contract
indicating the member will retire at the end of the selected DROP period. During the DROP period the
member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for
the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of
the member's retirement benefit at the member's earliest date eligible and 100% if the member delays
enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will
be distributed to the member in the form of a lump sum or rollover to an eligible plan.
Disabilitv and Death Benefits — Disability benefits may be either accidental or ordinary. Accidental
disability is defined as a permanent disability incurred in the line of duty, with benefits equivalent to the
greater of 60% of the member's average final compensation ar the member's service retirement benefit
calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the
greater of 50%of the member's average final compensation far those with 5 or more years of service or
the member's service retirement benefit calculation amount and 25% of average final compensation for
those with less than 5 years of service.
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Death benefits are similar to disability benefits. Benefits for accidental death are 50%of the average final
compensation of the member plus an additional amount for each child, or the provisions for ordinary
death. Ordinary death benefits consist of a pension equal to 40%of the average final compensation of the
member plus an additional amount for each child, or a lump-sum distribution to the designated
beneficiary equal to 50% of the previous year's earnable compensation of the member or equal to the
amount of the member's total contributions plus interest.
Benefits are increased (escalated) annually in accordance with Chapter 411.6 of the Code of Iowa which
states a standard formula for the increases.
The surviving spouse or dependents of an active member who dies due to a traumatic personal injury
incurred in the line of duty receives a $100,000 lump-sum payment.
Contributions -Member contribution rates are set by state statute. In accordance with Chapter 411 of the
Code of Iowa, the contribution rate was 9.40% of earnable compensation far the year ended June 30,
2017.
Employer contribution rates are based upon an actuarially deterxnined normal contribution rate and set by
state statute. The required actuarially deterxnined contributions are calculated on the basis of the entry
age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of
Iowa. The norxnal contribution rate is provided by state stabxte to be the acbxarial liabilities of the plan
less current plan assets, with such total divided by 1% of the actuarially determined present value of
prospective future compensation of all members, further reduced by member contributions and state
appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of
earnable compensation. The contribution rate was 25.92%far the year ended June 30, 2017.
The City's contributions to MFPRSI far the year ended June 30, 2017 was $3,512,627.
If approved by the state legislature, state appropriation may further reduce the employer's contribution
rate, but not below the minimum stabxtory contribution rate of 17.00% of earnable compensation. The
State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the
provisions of the Governmental Accounting Standards Board Statement No. 67—Financial Reparting for
Pension Plans, (GASB 67).
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2017.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2017, the City reported a liability of $30,970,956 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2016, and the total pension liability used to calculate the new pension liability was deterxnined by an
100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
actuarial valuation as of that date. The City's propartion of the net pension liability was based on the
City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating
employers. At June 30, 2016, the City's proportion was 4.953285% which was a decrease of 0.0322%
from it proportions measured as of June 30, 2015.
Far the year ended June 30, 2017, the City recognized pension expense of$4,100,603. At June 30, 2017,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Net difference between expected and $ 799,321 $ 28,722
actual experience
Changes of assumptions 1,307,611 424,218
Net difference between projected and actual
earnings on pension plan investments 5,476,383 -
Changes in propartion and differences between - 494,947
City contributions and proportionate share
of contributions
City contributions subsequent to the 3,512,627 -
measurement date
Total $ 11,095,942 $ 947,887
$3,512,627 is reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2018. Amounts reparted as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2018 $ 983,506
2019 983,506
2020 3,020,676
2021 1,740,466
2022 (92,726)
$ 6,635,428
101
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions: The total pension liability in the June 30, 2016 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation 3.00%per annum
Rates of salary increase 4.50%to 15.00%percent, including inflation.
Inveshnent rate of return 7.50%,net of pension plan investment expense,
including inflation
The actuarial assumptions used in the June 30, 2016 valuation were based on the results of an actuarial
experience study for the period from July 1, 2002 to June 30, 2012.
Postretirement mortality rates were based on the RP-2000 Blue Collar Combined Health Mortality Table
with males set-back two years, females set-forward one year and disabled individuals set-forward one
year(male only rates), with no projection of future mortality improvement.
The long-term expected rate of return on MFPRSI investxnents was determined using a building-block
method in which best-estimate ranges of expected future real rates (i.e., expected returns, net of pension
plan investment expense and inflation) are developed for each major asset class. These ranges are
combined to produce the long-term expected rate of rebxrn by weighting the expected future real rates of
return by the target asset allocation percentage and by adding expected inflation. The best estimates of
geometric real rates of return for each major asset class are summarized in the following table:
Long-Terxn Expected
Asset Class Real Rate of Return
Large cap 6.0%
Small cap 5.8
International large cap 7.0
Emerging markets 8.8
Emerging markets debt 6.5
Private non-core real estate 9.3
Master limited partnerships 8.5
Private equity 9.8
Core plus fixed income 3.8
Private core real estate 6.8
Treasury inflation protected securities 2.8
Tactical asset allocation 6.0
102
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Discount Rate - The discount rate used to measure the total pension liability was 7.50%. The projection
of cash flows used to deterxnine the discount rate assumed employee contributions will be made at the
contractually required rates, actuarially determined. Based on those assumptions, MFPRSI fiduciary
net position was projected to be available to make all projected future benefit payments to current active
and inactive employees. Therefore, the long-term expected rate of rebxrn on MFPRSI investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivitv of Citv's Provortionate Share of the Net Pension Liabilitv to Chanees in the Discount Rate -
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.50%, as well as what the city's propartionate share of the net pension liability would
be if it were calculated using a discount rate that is 1.00% lower (6.50%) or 1.00%higher (8.50%) than
the current rate.
1% Discount 1%
Decrease Rate Increase
(6.50%) (7.50%) (8.50%)
City's proportionate share of
the net pension liability: $ 48,607,343 $ 30,970,956 $ 16,283,608
MFPRSI Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued MFPRSI financial repart which is available on MFPRSPs website at
www.mfprsi.ore.
Pavables to MFPRSI -At June 30, 2017, City of Dubuque, Iowa reparted payables to the defined benefit
pension plan of $78,684 for legally required employer contributions. There were no legally required
employee contributions which had been withheld from employee wages but not yet remitted to MFPRSI.
103
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 12—LANDFILL CLOSURE AND POST CLOSURE CARE
To comply with federal (40 CFR 258.74) and state regulations (IAC 113.14 (455b)), the Dubuque
Metropolitan Area Solid Waste agency (DMASWA) is required to complete a closure and post-closure plan
and to provide funding necessary to effect that plan, including the proper monitoring and care of the landfill
after closure. Once the landfill is no longer accepting waste and is closed, the owner is responsible for
maintaining the final cover, monitoring ground water and methane gas, and collecting leachate (the liquid
that drains out of waste)far thirty years.
State governxnents are primarily responsible for implementation and enforcement of those requirements and
have been given flexibility to tailor requirements to accommodate local conditions that exist. A variety of
financial mechanisms can be used to demonstrate compliance with federal and state financial assurance rules.
The Agency utilizes the dedicated fund mechanism, which is funded through the tipping fees it receives.
The Agency files and annual repart with the State to provide compliance with its legal requirements of
maintaining a balance per the prescribed forxnula. Any adjustxnents to the account are made prior to June 30.
The Agency is required to estimate total landfill closure and post-closure care costs and recognize a portion
of these costs each year based on the percentage of estimated total landfill capacity used that period.
Estimated total costs, for closure and post-closure, would consist of four components: (1) the cost of
equipment and facilities used in post-closure monitoring and care, (2) the cost of final cover (material and
labor), (3) the cost of environxnental monitoring of the landfill during the post-closure period and (4)the cost
of any environxnental cleanup required after closure. Estimated total cost is based on an engineer's estimate
far these services is required to be updated annually for changes due to inflation or deflation, technology,
and/or changes to applicable laws or regulations.
The Agency's estimated closure and post-closure care expected costs are as follows:
2017
Closure $ 2,264,840
Post-closure care 2,265,000
Totals $ 4,529,840
The total closure and post-closure care costs far the DMASWA has been estimated at approximately
$4,529,840 as of June 30, 2017, and the portion of the liability, that has been recognized is $3,705,392.
This liability represents the cumulative amount reported to date based on the use of 100% of the estimated
capacity of cells 1, 2, 3, 4, 5, 6, 7 and 8, and 85% of cell 9 Phase 1 and 44% of cell 9 Phase 2. The Agency
has accumulated resources to fund closure and post-closure costs; they are included in assets whose use is
limited on the balance sheet and total $4,457,840 as of June 30, 2017. The Agency will recognize the
remaining estimated cost of closure and post closure care of$824,448 over the estimated remaining life of 22
years as the remaining capacity is filled.
NOTE 13—LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, airpart property (hangars and terminal space), farxn land,
parking areas, space for antennas on top of water towers, and concession areas under operating leases. The
most significant lease is the lease of the greyhound racing and gambling facility and related parking area to
the Dubuque Racing Association (DRA). The City's cost of the leased DRA assets total $10,144,771. The
carrying amount of the assets at June 30, 2017 is $6,299,355, with $142,423 of depreciation expense during
the year ended June 30, 2017. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2017,the DRA lease generated $4,843,286 in lease revenue.
104
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 14—SUBSEQUENT EVENTS
On August 31, 2017, the City sold 30.67 acres of industrial land to Dubuque County in order to help
Flexsteel build a $25 million plant. Dubuque Initiatives will accept ownership of Flexsteel's existing
100-plus-year-old facility at 3400 Jackson St., demolish all structures and redevelop the site. The city would
contribute up to $660,000 for this process, which includes environmental cleanup. City officials also will
provide tax-increment-financing rebates to Flexsteel of up to $4.1 million over 10 years. The city also will
provide 10 years of TIF rebates for any new development at Flexsteel's current site on Jackson St. In total,
Flexsteel would receive more than $10.2 million worth of state and local incentives in exchange for retaining
at least 200 of 218 local jobs. Flexsteel broke ground on their new facility in early October, 2017.
On September 22, 2017, the City drew down $1.27M of State Revolving Loan Fund (SRF) proceeds. This
was in relation to the Bee Branch Creek Restoration project.
On July 5, 2017 complete action was taken on a $3.498 million Sewer Utility Revenue Capital Loan SRF
Note. The Note will carry an annual 1.75%interest rate for 20 years, with an annual servicing fee of 0.25%.
There is also a one time upfront loan origination fee of 0.5%. The loan funds will be used to pay costs of
acquisition, construction, reconstruction, extension, improvement, and equipping all or part of the Municipal
Sewer System, including those costs associated with Kerper Boulevard Sanitary Sewer reconstruction
project.
On August 21, 2017, complete action was taken on a $1.4 million SRF sponsorship project used to fund
improvements within the Catfish Creek Watershed. This sponsorship project is funded by a reduction in
interest on the Stormwater Utility Revenue Capital Loan Note, Series 2015B.
On September 5, 2017, complete action was taken on a $475,000 Water Revenue Capital Loan SRF Note.
The proceeds of which will be used to fund The note carries a 0%interest rate for up to three years and has
no initiation or servicing fees. The loan may be rolled into an SRF Construction Loan or repaid when
perxnanent financing is available.
On August 21, 2017, council authorized the submittal of a Clean Water State Revolving Fund (SRF)
Sponsorship Project application to the Iowa Deparhnent of Nabxral Resources to secure funding far the Eagle
Point Park Environxnenta l Restoration Proj ect for $320,000.
NOTE 15—PROSPECTIVE ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) has issued two statements not yet implemented by
the City. The statements which might impact the City are as follows:
Statement No. 75, Accounting and Financial Reparting for Postemployment Benefits Other Than Pension
Plans, issued June 2015, will be effective far the fiscal year ending June 30, 2018. The objective of this
Statement is to improve the accounting and financial reporting of governments for postemployment benefits
other than pensions. This Statement replaces Statement 45 and 57.
Statement No. 81 , lrrevocable Split-lnterest Agreements, will be effective far the fiscal year ending June 30,
2018. The objective of this statement is to improve accounting and financial reporting for irrevocable
split-interest agreements by providing recognition and measurement guidance for situations in which a
government is a beneficiary of the agreement.
105
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2017
NOTE 15—PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
Statement No. 83, Certain Asset Retirement Obligations, will be effective far the fiscal year June 30, 2019.
The objective of this Statement is to address accounting and financial reparting for certain asset retirement
obligations (ARO). The Statement establishes criteria for determining the timing and pattern of recognition of
a liability and a corresponding deferred outflow of resources for AROs.
Statement No. 84, Fiduciary Activities, will be effective far the fiscal year June 30, 2020. The objective of
this Statement is to improve guidance regarding the identification of certain fiduciary activities for
accounting and reporting purposes and how those activities should be reported.
Statement No. 85, Omnibus 2017, will be effective for the fiscal year June 30, 2018. The objective of this
Statement is to address practice issues that have been identified during implementation and application of
certain GASB Statements, The Statement addresses a variety of topics including issues related to blending
component units, goodwill, fair value measurement and application, and postemployment benefits (pensions
and other postemployment benefits [OPEB]).
Statement No. 86, Certain Debt Extinguishxnent issues, will be effective far the fiscal year June 30, 2018.
The objective of this Statement is to improve consistency in accounting and financial reporting for
in-substance defeasance of debt by providing guidance for transactions in which cash and other monetary
assets acquired with only existing resources, resources other than the proceeds of refunding debt, are placed
in an irrevocable trust for the sole purpose of extinguishing debt.
Statement No. 87, Leases, will be effective far the fiscal year June 30, 2021. The objective of this Statement
is to better meet the information needs of financial statements users by improving accounting and financial
reporting for leases by governxnents.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
NOTE 16—TAX ABATEMENTS
Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax
revenues that results from an agreement between one or more governments and an individual or entity in
which (a) one or more governxnents promise to forgo tax revenues to which they are otherwise entitled and
(b) the individual or entity promises to take a specific action after the agreement has been entered into that
contributes to economic development or otherwise benefits the governments ar the citizens of those
governments.
Citv Tax Abatements
The City provides tax abatements for urban renewal and economic development projects with tax increment
financing as provided for in Chapter 15A and 403 of the Code of Iowa. Far these types of projects, the City
enters into agreements with developers which require the City, after developers meet the terxns of the
agreements, to rebate a portion of the properly tax paid by the developers, to pay the developers an economic
development grant ar to pay the developers a predetermined dollar amount. No other commitments were
made by the City as a part of these agreements.
Far the year ended June 30, 2017, the City abated $3,576,245 of property tax under the urban renewal and
economic development projects.
106
Required Supplementary Information
June 30, 2017
City of Dubuque, Iowa
107
CITY OF DUBUQUE, IOWA
SCHEDULE OF RECEIPTS, DISBURSEMENTS AND CHANGES IN
BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
GOVERNMENTAL AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30,2017
Budgeted Amounts Final to Actual
Actual OriQinal Final Variance
RECEIPTS
Propertytax $ 23,858,828 $ 25,555,634 $ 25,555,634 $ (1,696,806)
TaYincrementfinancing 10,937,338 11,112,649 11,112,649 (175,311)
OtherCitytax 12,684,826 18,106,679 17,733,819 (5,048,993)
Licenses and peimits 6,601,853 1,505,981 1,531,981 5,069,872
Use of money and property 14,561,637 12,893,350 12,978,348 1,583,289
Intergovemmental 45,547,612 34,561,978 76,358,430 (30,810,818)
Charges for fees and service 37,545,385 59,462,089 59,404,187 (21,858,802)
Special assessments 309,184 - - 309,184
Miscellaneous 9,643,090 1,705,918 2,278,940 7,364,150
Total Receipts 161,689,753 164,904,278 206,953,988 (45,264,235)
EXPENDITURES
Publicsafety 29,197,602 29,240,936 29,552,449 354,847
Public works 11,547,440 13,514,802 14,399,227 2,851,787
Health and social services 943,286 994,825 989,508 46,222
Culture and recreation 11,580,800 11,967,321 12,526,578 945,778
Community and economic development 14,847,815 14,203,680 14,359,577 (488,238)
Generalgovemment 8,926,106 9,131,313 9,482,984 556,878
Debt service 22,293,960 10,088,563 21,787,938 (506,022)
Capitalprojects 27,904,170 27,315,838 80,705,559 52,801,389
Business-type activities 64,269,682 68,698,070 1OQ081,981 35,812,299
Total Expenditures 191,510,861 185,155,348 283,885,801 92,374,940
EXCESS (DEFICIENCY)OF RECEIPTS
OVER(UNDER)EXPENDITURES (29,821,108) (20,251,070) (76,931,813) 47,110,705
OTHER FINANCING SOURCES,NET 30,942,315 14,996,651 39,380,222 (8,437,907)
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER)EXPENDITURES AND
OTHER FINANCING USES 1,121,207 (5,254,419) (37,551,591) 38,672,798
BALANCE,BEGINNING OF YEAR 71,419,657 29,641,135 75,864,384 -
BALANCE,ENDING OF YEAR $ 72,540,864 $ 24,386,716 $ 38,312,793 $ 38,672,798
See Notes to Requued Supplementary Information.
108
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION—BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30,2017
The budgetary comparison is presented as Required Supplementary Information in accordance with
Governmental Accounting Standards Board Statement No. 41 for governments with significant budgetary
perspective differences resulting from not being able to present budgetary comparisons far the General
Fund and each major Special Revenue Fund.
The Code of Iowa requires the adoption of an annual budget by the City Council on or before March 15
of each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control(the level on which expenditures may not legally exceed
appropriations) is the function level far the City as a whole, rather than at the fund or fund type level.
The internal service fund or agency fund activity is not included in the adopted budget.
The City's budget is prepared on the cash basis of accounting with an adjustment for accrued payroll
following required public notice and hearings. After the initial annual budget is adopted, it may be
amended for specified purposes. Budget amendments must be prepared and adopted in the same manner
as the original budget. Management is not authorized to amend the budget ar to make budgetary transfers
between functions without the approval of the City CounciL Management may make budgeting transfers
between funds as long as the transfers are within the same function. The City has adopted a policy
relative to budgetary control and amendment which provides for control at the line-item level and review
of the current year's budget at the time the next year's budget is prepared. This usually results in
amending the appropriations of all functions to adjust to current conditions. Supplemental appropriations
are only provided when unanticipated revenues or budget surpluses become available. Appropriations as
adopted lapse at the end of the fiscal year.
The budget for the fiscal year ended June 30, 2017, was amended two times during the year to allow the
City to increase function expenditures by $98,730,453 primarily far the carry-forward of unfinished
capital improvement projects. During the year ended June 30, 2017, expenses for community and
economic development and debt service exceeded the budgeted amount.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
6ovemmevtel Evteiprise
ModiSed Fwds NLnds
B�dgetery Accrual Accrual/Accr�al ModiSed Accrual
Ba9s Adj�strnevts Basis Accr�alBasis Ba9s Total
ReceiplsBevev�e $ 161,689,]53 $ (20,34],6]4) $ 141,342,0]9 $ 106,265,]36 $ 35,0]6,343 $ 141,342,0]9
Er.penAtures/Er.penses 191,S1Q861 (3Q]13y45) 151,]96y16 115,36]y13 36,429,003 151,]96y16
DeSQevcy ofReceiplsBevev�e
UvdecEr.penAtures/Er.penses (29,821,108) 19,366,2]1 (10,454,83]) (9,102,1]]) (1,352,660) (10,454,83])
ONer Fivavcivg Sources 30y42,315 (4,819,6]5) 26,122,640 10,890,65] 15,231y83 26,122,640
Net 1,121,20] 14,546,596 15,66],803 1,]88,480 13,8]9,323 15,66],803
Balavice,Begivnivg �1,419,65] 140,435,390 211,855,04] 53,612,468 158,242,5]9 211,855,04]
Balavice,EvAvg $ �2,540,864 $ 154y81y86 $ 22],522,850 $ 55,400y48 $ 1]2,121y02 $ 22],522,850
109
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
LAST THREE FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2017 2016 2015
City's proportion of the net pension liability(asset) 0.34275 % 0.35135 % 0.37035 %
City's proportionate share of the net pension liability $ 21,570 $ 17,358 $ 14,688
City's covered payroll $ 24,597 $ 24,039 $ 24,210
City's proportionate share of the net pension liability as
a percentage of its covered payroll 87.69 % 72.21 % 60.67 %
Plan fiduciary net position as a percentage of the total 81.82 % 85.19 % 87.61 %
pension liability
*In accordance with GASB Statement No. 68,the amounts presented for each fiscal year were
determined as of June 30 of the preceeding fiscal year.
Note: GASB Statement No. 68 requires ten years of inforxnation to be presented in this table. However,
until a full 10-year trend is compiled, the City will present information far those years for which
inforxnation is available.
110
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Statutorilyrequiredconhibution $ 2,229 $ 2,196 $ 2,151 $ 2,164 $ 2,022 $ 2,022 $ 1,573 $ 1,415 $ 1,275 $ 1,164
Contdbutions in relation to the
statutorilyrequiredconhibution 2,229 2,196 2,151 2,164 2,022 2,022 1,573 1,415 1,275 1,164
Contdbution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
City'scoveredpayroll $ 24,961 $ 24,597 $ 24,039 $ 24,210 $ 23,321 $ 23,676 $ 22,627 $ 21,275 $ 20,071 $ 19,246
Conhibutions as a percentage of
covered-employee payroll 8.93 % 8.93 % 8.95 % 8.94 % 8.67 % 8.07 % 6.95 % 6.65 % 635 % 6.05 %
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION--PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30,2017
Changes of benefit terms:
Legislation passed in 2010 modified benefit terms for current Regular members. The definition of final
average salary changed from the highest three to the highest five years of covered wages. The vesting
requirement changed from four years of service to seven years. The early retirement reduction increased
from 3%per year measured from the member's first unreduced retirement age to a 6%reduction for each
year of retirement before age 65.
Legislative action in 2008 transferred four groups - emergency medical service providers, county jailers,
county attorney investigators, and National Guard installation security officers - from Regular
membership to the protection occupation group for future service only.
Changes of assumption:
The 2014 valuation implemented the following refinements as a result of a quadrennial experience study:
• Decreased the inflation assumption from 3.25%to 3.00%.
• Decreased the assumed rate of interest on members account from 4.00%to 3.75%per year.
• Adjusted male mortality rates for retirees in the Regular membership group.
• Moved from an open 30 year amortization period to a closed 30 year amortization period for the
UAL beginning June 30, 2014. Each year thereafter, changes in the UAL from plan experience
will be amortized on a separate closed 20 year period.
The 2010 valuation implemented the following refinements as a result of a quadrennial experience study:
• Adjusted retiree martality assumptions.
• Modified retirement rates to reflect fewer retirements.
• Lowered disability rates at most ages.
• Generally increased the probability of terminating members receiving a deferred retirement
benefit.
• Modified salary increase assumptions based on various service duration.
112
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST THREE FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2017 2016 2015
City's proportion of the net pension liability(asset) 4.9533 % 4.9854 % 5.0788 %
City's proportionate sktare of the net pension liability $ $30,971 $ 23,423 $ 18,410
City's covered payroll $ $ 13,423 $ 13,052 $ 12,968
City's proportionate sktare of the net pension liability as a percentage
of its covered payroll 230.73 % 179.46 % 141.96 %
Plan fiduciary net position as a percentage of the total pension liability 7820 % 83.04 % 8627 %
*In accordance with GASB Statement No. 68,the amounts presented for each fiscal year were
determined as of June 30 of the preceeding fiscal year.
Note: GASB Statement No. 68 requires ten years of inforxnation to be presented in this table. However,
until a full 10-year trend is compiled, the City will present inforxnation for those years for which he
inforxnation is available.
113
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
2017 2016 2015 2014 2013 2012 2011 2010 2009 2008
Statutorilyrequiredconhibution $ 3,513 $ 3,727 $ 3,969 $ 3,906 $ 3,310 $ 3,177 $ 2,404 $ 1,966 $ 2,078 $ 2,632
Contdbutions in relation to the
statutorilyrequiredconhibution 3,513 3,727 3,969 3,90 3,310 3,17 2,404 1,966 (2,078) 2,632
Contdbution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
City'scoveredpayroll $ $ 13,552 $ 13,423 $ 13,052 $ 12,968 $ 12,672 $ 12,831 $ 12,080 $ 11,565 $ 11,083 $ 1Q330
Conhibutions as a percentage of
covered pa}+toll 25.92 % 27.77 % 30.41 % 30.12 % 26.12 % 24.76 % 19.90 % 17.00 % 18.75 % 25.48
A
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMNATRY INFORMATION--PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30,2017
ChanQes of benefit terms:
There were no significant changes of benefit terms.
ChanQes of assumptions
Postretirement mortality changed to the RP-2000 Blue Collar Combined Healthy Martality Table with
males set-back two years,females set-forward one year and disableds set-forward one year(male only
rates),with no projection of fubxre mortality improvement.
115
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN(OPEB)
FOR THE YEAR ENDED JUNE 30,2017
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Yeu Actuarial Value of Liability AAI, Funded Covered of Covered
Ended Valuation Assets (AAI,) (UAAI,) Ratio Payroll Payroll
June 30 Date (a) (b) (b-a) (a/b) (c) (b-a/c)
2014 7/1/2012 $ - $ 5,720,577 $ 5,720,577 - % $ 32,626,573 17.43 %
2016 7/1/2014 - 4,550,896 4,550,896 - 32,126,628 14.17
2017 7/1/2016 - 5,187,750 5,187,750 - 33,775,619 1536
116
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117
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure
for particular purposes.
Road Use Tax Fund — This fund is used to account for state revenues allocated to the City for
maintenance and improvement of City streets.
Section VIII Housing Fund—This fund is used to account far the operations of federal Section VIII
existing,voucher, and moderate rehabilitation projects.
Employee Benetits Fund — This fund is used to account for pension and related employee benefit
costs for those employees paid wages from the General Fund.
Special Assessments Fund —This fund is used to account far the financing of public improvements
that are deemed to benefit primarily the properties against which special assessments are levied and
to accumulate monies far the payment of principal and interest on the outstanding long-term debt
service.
Cable TV Fund — This fund is used to account far the monies and related costs as set forth in the
cable franchise agreement between the City of Dubuque and the cable franchisee.
Library Expendable Gifts Trust — This fund is used to account for contributions given to the
library to be spent for specific purposes.
IFA Housing Trust — This fund is used to account for funds received under the Iowa Finance
Authority State Housing Trust Fund Program.
Community Development Fund — This fund is used to account far the use of Community
Development Block Grant funds as received from federal and state governxnental agencies.
Police Expendable Gifts Fund — This fund is used to account for contributions given to the police
department to be spent for specific purposes.
118
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account far the acquisition and construction of major capital facilities
other than those financed by proprietary funds and trust funds.
Airport Construction Fund — This fund is used to account far the resources and costs related to
airpart capital improvements.
Sales Tax Construction Fund — This fund is used to account far the resources and costs related to
capital improvements financed through the local option sales tax.
General Construction Fund — This fund is used to account far the resources and costs related to
general capital improvements.
Street Construction Fund—This fund is used to accountfar the resources and costs related to street
capital improvements.
PERMANENT FUNDS
Perxnanent funds are used to report resources that are legally restricted to the extent that only earnings,
not principal,may be used for purposes that suppart the reporting City's programs.
Ella Lyons Peony Trail Trust Fund —This fund is used for dividends and maintenance cost related
to the City Peony Trail,per trust agreement.
Library Gifts Trust Fund—This fund is used to accountfar testamentary gifts to the City library.
119
CITY OF DUBUQUE,IOWA
COMBINING BALANCE SHEET
NONMAJORGOVERNMENTALFUNDS
JUNE 3Q 2017
Special Revenue Funds
Road
Use SectionVIII Employee
Tas Housing Benefits
ASSETS
Caeh and pooled cash inveetrneNs $ 4,376,199 $ 182,846 $ -
Receivables
Proper[ytax
Delinquent - - 43,420
Succeedingyeu - - 4,49Q639
Accounts and other 2,549 53,441 -
Special aseeeements - - -
Accruedintereet - 283 -
Notee - - -
Inteigovemmental 746,732 - -
Inventories 474,919 - -
Prepaiditeme 8,476 37Q854 -
Reetricted cash and pooled caeh inveetrnents 140,744
TotalAeeets $ 5,608,875 $ 748,168 $ 4,534,059
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accountepayable $ 189,519 $ 179,391 $ -
Accruedpayioll 56,624 2Q614 -
Wergovemmentalpayable - 5,726 -
Due to other fimde - - -
Uneamed revenue 6,085
TotalLiabilitiee 246,143 211,816
DEFERREDINFLOWSOFRESOURCES
Urtavailable revenues
Succeedingyeupropertytas - - 4,49Q639
Special aseeeements - - -
Gran[s - - -
Other 8,316
Total Deferred Inflowe of Reeourcee 4,498,955
FUND BALANCES
Nonspendable:
Endowment corpus - - -
Inventory 474,919 - -
Prepaiditeme 8,476 37Q854 -
Reetricted:
Endowmen[s - - -
Library - - -
Police - - -
Capital improvemeNs 4,879,337 - -
Franchise agreement - - -
Special aseeeements - - -
Iowa Firtance Authority Truet - - -
Communiry progiame - 165,498 -
Employeebenefits - - 35,104
Committed,capital improvements
TotalFundBalancee 5,362,732 536,352 35,104
Total Liabilitiee,Deferred Inflowe of Reeourcee and Fund
Balancee $ 5,608,875 $ 748,168 $ 4,534,059
120
EXHIBIT A-1
Special Revenue Funde Capital Projects Funds
Library Police IFA
Special Expendable Expendable Housing Commuruty Auport General
AeeeeemeNs Cable TV Gifte Trust Gifte Trust Trust Development Conetnution Conetruction
$ - $ 437,797 $ 1,207,965 $ 38,470 $ 112,344 $ 2,653,474 $ - $ 64Q455
- 143,938 - - - - - -
797,921 - - - - - - -
- 373 1,034 - - 21,116 1,134 177
- - - - 123,383 5,747,136 - 19,160
- - - - 59,940 513,884 1,764,917 34,002
- 17,192 - - - 4,003 - -
507,910 1,91Q397 2,792,903
$ 797,921 $ 599,300 $ 1,208,999 $ 38,470 $ 295,667 $ 9,447,523 $ 3,676,448 $ 3,486,697
$ - $ - $ 7,654 $ 17,500 $ - $ 336,123 $ 1,342,066 $ 359,697
- 12,809 - - - 27,806 - -
- - - - - - 585,180 -
12,809 7,654 17,500 363,929 1,927,246 359,697
764,034 - - - - - - -
- - - - - 26Q905 465,671 34,002
764,034 26Q905 465,671 34,002
- 17,192 - - - 4,003 - -
- - 1,201,345 - - - - -
- - - 20,970 - - - -
- - - - - - 1,283,531 3,092,998
- 569,299 - - - - - -
33,887 - - - - - - -
- - - - 295,667 - - -
- - - - - 8,81$686 - -
33,887 586,491 1,201,345 2Q970 295,667 8,822,689 1,283,531 3,092,998
$ 797,921 $ 599,300 $ 1,208,999 $ 38,470 $ 295,667 $ 9,447,523 $ 3,676,448 $ 3,486,697
(Continued)
121
CITY OF DUBUQUE,IOWA EXHIBIT A-1
COMBINING BALANCE SHEET (CONTINUED)
NONMAJORGOVERNMENTALFUNDS
JUNE 3Q 2017
CapitalProjecteFunde PermanentFunde
Total
EllaLyons Library Nonntajor
Salee Tas Street Peony Trail Gifte Govemmental
Conetnution Conetnution Trust Trust Funde
ASSETS
Caeh and pooled cash inveetrneNs $ 3,373,486 $ 1,301,011 $ - $ - $ 14,324,047
Receivables
Proper[ytax
Delinquent - - - - 43,420
Succeedingyeu - - - - 4,49Q639
Accountsandother - 7,136 - - 207,064
Special aseeeements - - - - 797,921
Accruedintereet 3,537 921 44 16 28,635
Notee 657,518 - - - 6,547,197
Inteigovemmental 193,806 3,567,439 - - 6,880,720
Inventories - - - - 474,919
Prepaiditems - - - - 400,525
Reetrictedcashandpooledcaehinveetrnents 909,490 151,377 18,406 6,431,227
TotalAeeets $ 5,137,837 $ 4,876,507 $ 151,421 $ 18,422 $ 4Q626,314
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accountepayable $ 215,872 $ 846,938 $ - $ - $ 3,494,760
Accruedpayioll - - - - 117,853
Wergovemmentalpayable - - - - 5,726
Due to other fimde - - - - 585,180
Uneamed revenue 6,085
TotalLiabilitiee 215,872 846,938 4,209,604
DEFERREDINFLOWSOFRESOURCES
Urtavailable revenues
Succeedingyeupropertytas - - - - 4,49Q639
Special aseeeements - - - - 764,034
Grante 8,921 2,263,640 - - 3,033,139
Other - 86,819 - - 95,135
Total Deferred Inflowe of Reeourcee 8,921 2,35Q459 8,382,947
FUND BALANCES
Nonspendable:
Endowmentcorpue - - 57,412 12,000 69,412
Inventory - - - - 474,919
Prepaiditems - - - - 400,525
Reetricted:
Endowmente - - 94,009 6,422 1OQ431
Library - - - - 1,201,345
Police - - - - 2Q970
CapitalimprovemeNs - - - - 9,255,866
Franchise agreement - - - - 569,299
Special aseeeements - - - - 33,887
Iowa Firtance Authority Truet - - - - 295,667
Communiryprogiame - - - - 8,984,184
Employeebenefits - - - - 35,104
Committed,capital improvements 4,913,044 1,679,110 6,592,154
TotalFundBalancee 4,913,044 1,679,110 151,421 18,422 28,033,763
Total Liabilitiee,Deferred Inflowe of Reeourcee and Fund
Balancee $ 5,137,837 $ 4,876,507 $ 151,421 $ 18,422 $ 4Q626,314
122
THIS PAGE IS INTENTIONALLY LEFT BLANI�
123
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 3Q 2017
Special Revenue Funds
Road
Use SectionVIII Employee
Tax Housing Benefits
REVENUES
Taxes $ - $ - $ 5,662,126
Special assessments - - -
Intergovemmental 7,415,981 5,651,124 -
Chugesforservices - - -
Investrnenteunings - - -
Conhibutions - 853 -
Miscellaneous 12Q579 104,099 -
TotalRevenues 7,536,560 5,756,076 5,662,126
EXPENDITURES
Govemmental activities
Current
Public safety - - -
Public works 5,377,480 - -
Health and social services - - -
Culture and recrea.tion - - -
Community and economic development - 5,709,406 -
General govemment - - 184
Capitalprojects 4,500 - -
Total Expenditures 5,381,980 5,709,406 184
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 2,154,580 46,670 5,661,942
OTHER FINANCING SOURCES (USES)
Issuance of debt - - -
Premium onbonds - - -
Transfers in - 86,801 -
T�ansf�s ouc �io9,s6a) - (s,6so,6s9�
Insurance recovery - - -
Sale of capital assets 500 - -
Total Other Financing Sources(Uses) (109,064) 86,801 (5,650,689)
NET CHANGE IN FUND BALANCES 2,045,516 133,471 11,253
FUND BALANCES,BEGINNING 3,317,216 402,881 23,851
FUND BALANCES,ENDING $ 5,362,732 $ 536,352 $ 35,104
124
EXHIBIT A-2
Special Revenue Funds Capital Projects Funds
Library Police IFA
Special Expendable Expendable Housing Community Airport General
Assessments Cab1eTV Gifts Trust Gifts Trust Trust Development Construction Construction
$ - $ - $ - $ - $ - $ - $ - $ -
261,233 - - - - - - -
- - - - 216,320 2,686,016 3,122,952 -
- - 7,898 - - 44,270 211,396 7
37,699 127 - - - 88,190 14,363 19,374
- - 432 81,067 - 55,269 - 5,240
3,881 577,724 185,544 - - 58,304 - 2,363
302,813 577,851 193,874 81,067 216,320 2,932,049 3,348,711 26,984
- - - 64,470 - - - -
- 541 - - - 1Q000 - -
- - 244,760 - - 123,139 - -
- - - - 167,161 3,068,502 - -
- 507,638 - - - - - -
- - - - - - 2,471,016 3,493,540
- 508,179 244,760 64,470 167,161 3,201,641 2,471,016 3,493,540
302,813 69,672 (50,886) 16,597 49,159 (269,592) 877,695 (3,466,556)
- - - 4,373 67,359 241,000 33Q444 1,246,131
�z99,isi� - - - - - �zoz,s6s� �zai,000�
- - - - - 13Q854 - -
(299,131) - - 4,373 67,359 371,854 127,579 1,005,131
3,682 69,672 (50,886) 20,970 116,518 102,262 1,005,274 (2,461,425)
3Q205 516,819 1,252,231 - 179,149 8,72Q427 278,257 5,554,423
$ 33,887 $ 586,491 $ 1,201,345 $ 20,970 $ 295,667 $ 8,822,689 $ 1,283,531 $ 3,092,998
(Continued)
125
CITY OF DUBUQUE,IOWA EXHIBIT A-2
COMBINING STATEMENT OF REVENUES, (CONTINUED)
EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 3Q 2017
Capital Projects Funds Permanent Funds
Total
EllaLyons Library Nonmajor
SalesTax Sheet PeonyTrail Gifts Govemmental
Construction Construction Trust Trust Fhnds
REVENUES
Taxes $ 1,778,010 $ 2,667,013 $ - $ - $ 1Q107,149
Special assessments - - - - 261,233
Intergovemmental 43,240 5,525,615 - - 24,661,248
Chugesforservices - 3,050 - - 266,621
Investrnenteunings 1Q429 3,363 - - 173,545
Conhibutions - - - - 142,861
Miscellaneous 1,045 26,125 - 229 1,079,893
TotalRevenues 1,832,724 8,225,166 - 229 36,692,550
EXPENDITURES
Govemmental activities
Current
Public safety - - - - 64,470
Public works - - - - 5,377,480
Health and social services - - - - 1 Q541
Culture and recrea.tion - - 7,319 - 375,218
Community and economic development - - - - 8,945,069
General govemment - - - - 507,822
Capitalprojects 1,729,884 8,548,678 - - 16,247,618
Total Expenditures 1,729,884 8,548,678 7,319 - 31,528,218
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 102,840 (323,512) (7,319) 229 5,164,332
OTHER FINANCING SOURCES (USES)
Issuanceofdebt 23Q000 - - - 23Q000
Premium on bonds 5,298 - - - 5,298
Transfersin 28,198 125,172 - - 2,129,478
Transfers out (1,025,245) (334,461) - - (7,862,955)
Insurance recovery - 26,312 - - 26,312
Sale of capital assets - 122,050 - - 253,404
Total Other Financing Sources(Uses) (761,749) (6Q927) - - (5,218,463)
NET CHANGE IN FUND BALANCES (658,909) (384,439) (7,319) 229 (54,131)
FUND BALANCES,BEGINNING 5,571,953 2,063,549 158,740 18,193 28,087,894
FUND BALANCES,ENDING $ 4,913,044 $ 1,679,110 $ 151,421 $ 18,422 $ 28,033,763
126
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises --where the intent of the City Council is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges; or where the City Council has decided that periodic determination of net income is appropriate
for accountability purposes.
Refuse Collection Fund — This fund is used to account far the operations of the City's refuse
collection services.
Transit System Fund —This fund is used to account far the operations of the City's bus and other
transit services.
Salt Fund—This fund is used to account far the operations of the City's salt distribution.
America's River Project—This fund is used to account for all projects covered by the Vision Iowa
Grant, including all matching funds.
127
CITY OF DUBUQUE,IOWA
COMBINll�TG STATEMENT OF NET POSITION EXHIBIT B-1
NONNIAJOR ENTERPRISE FUNDS
JUNE 30,2017
Total Other
Refuse Transit America's Enterprise
Collection System Salt RiverProject Fhnds
ASSETS
CURRENT ASSETS
Cash and pooled cash investrnents $ 926,428 $ 825,959 $ - $ 4 $ 1,752,391
Receivables
Accounts 391,286 4,276 - - 395,562
Accrned interest 793 - - - 793
Intergovemmental - 2,353,793 - - 2,353,793
Prepaid items - 9,902 - - 9,902
TotalCurrentAssets 1,318,507 3,193,930 - 4 4,512,441
NONCURRENT ASSETS
Capital assets
Land - 36,000 - - 36,000
Buildings - 7,161,486 175,458 - 7,336,944
Improvements to other than buildings - 796,092 686,312 - 1,482,404
MacMnery and equipment 2,322,582 6,163,031 36,342 - 8,521,955
Conshuctioninprogress - 4,34Q757 - - 4,34Q757
Accumulated depreciation (1,604,163) (5,095,149) (94,663) - (6,793,975)
NetCapitalAssets 718,419 13,402,217 803,449 - 14,924,085
TotalNoncurrentAssets 718,419 13,402,217 803,449 - 14,924,085
TotalAssets 2,036,926 16,596,147 803,449 4 19,436,526
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 257,540 402,480 - - 66Q020
LIABILITIES
CURRENT LIABILITIES
Accounis payable 5,620 1,361,913 - 3,436 1,37Q969
Accruedpayroll 5Q600 75,609 - - 126,209
General obligation bonds payable 4,749 - - - 4,749
Accrued compensated absences 1,172 4,055 - - 5,227
Accruedinterestpayable 2,752 - - - 2,752
Due to other funds - - 2,887 - 2,887
TotalCurrentLiabilities 64,893 1,441,577 2,887 3,436 1,512,793
NONCURRENT LIABILITIES
General obligation bonds payable 76,601 - - - 76,601
NCAccruedcompensatedabsences 241,164 11,494 - - 252,658
Netpensionliability 947,077 1,48Q073 - - 2,427,150
Net OPEB Liability 208,599 82,500 - - 291,099
Total Noncurrent Liabilities 1,473,441 1,574,067 - - 3,047,508
Total Liabilities 1,538,334 3,015,644 2,887 3,436 4,56Q301
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 37,617 58,788 - - 96,405
NET POSITION
Netinvestrnentincapitalassets 637,069 13,402,217 803,449 - 14,842,735
Unreshicted 81,446 521,978 (2,887) (3,432) 597,105
TotalNetPosition $ 718,515 $ 13,924,195 $ SOQ562 $ (3,432) $ 15,439,840
128
CITY OF DUBUQUE,IOWA
COMBINll�TG STATEMENT OF REVENiJES,EXPENSES,AND CIiANGES IN NET POSITION EXHIBIT B-2
NONNIAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDID JUNE 30,2017
Total Other
Refuse Transit America's Enterprise
Collection System Salt RiverProject Funds
OPERATING REVENUES
Charges for sales and services $ 4,181,579 $ 381,665 $ 86,887 $ - $ 4,65Q131
Other 3,472 77,593 - 4 81,069
Total Operating Revenues 4,185,051 459,258 86,887 4 4,731,200
OPERATING EXPENSES
Employee e�pense 2,879,365 2,421,841 - - 5,301,206
Utilities 18,572 88,332 - - 106,904
Repairsand maintenance 32Q053 511,814 1,325 - 833,192
Supplies and services 643,421 441,831 16,075 22,893 1,124,220
Insurance 21,899 46,279 - - 68,178
Depreciation 319,486 726,957 27,639 - 1,074,082
TotalOperatingExpenses 4,202,796 4,237,054 45,039 22,893 8,507,782
OPERATING INCOME(LOSS) (17,745) (3,777,79� 41,848 (22,889) (3,776,582)
NONOPERATING REVENUES
Intergovemmental - 1,393,388 - - 1,393,388
Investment earnings 3,217 764 - - 3,981
Contributions - 89,961 - - 89,961
Interest expense (5,472) - - - (5,472)
Gain on disposal of assets - 1Q464 - - 1Q464
NetNonoperating Revenues (2,255) 1,494,577 - - 1,492,322
INCOME(LOSS)BEFORE TRANSFERS (2Q000) (2,283,219) 41,848 (22,889) (2,284,260)
CAPITAL CONTRIBUTIONS - 4,959,696 - - 4,959,696
TRANSFERS IN - 1,307,589 - 26,498 1,334,087
CHANGE INNET POSITION (2Q000) 3,984,066 41,848 3,609 4,009,523
NET POSITION,BEGINNING 738,515 9,94Q129 758,714 (7,041) 11,43Q317
NET POSITION,ENDING $ 718,515 $ 13,924,195 $ 80Q562 $ (3,432) $ 15,439,840
129
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 3Q 2017
America's TotalO[her
Refuse Transit River Enterprise
Collection System Salt Project Funds
CASH FLOWS FROM OPERATINGACTIVITIES
Cashreceivedfromcustomers $ 4,118,291 $ 400,587 $ 86,888 $ - $ 4,605,766
Cash payments to suppliers for goods and services (1,001,331) (459,417) (90,230) (26,498) (1,577,47�
Cash payments to employees for services (2,840,629) (2,397,535) - - (5,238,164)
Other operating receipts 3,472 77,593 - 4 81,069
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 279,803 (2,378,772) (3,342) (26,494) (2,128,805)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTI VITIES
Transfers from other funds - 1,307,589 - 26,498 1,334,087
Conhibutions - 5,049,657 - - 5,049,657
Intergovemmentalgiantproceeds - 1,017,993 - - 1,017,993
Proceeds from interfund balances - - 2,887 - 2,887
NET CASH PROVIDED BY(USED FOR)NONCAPITAL
FINANCINGACTIVITIES - 7,375,239 2,887 26,498 7,404,624
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTI VITIES
Proceeds from issuance of debt 52,813 - - - 52,813
Acquisition and construction of capital assets - (4,330,293) - - (4,330,293)
P�tn�tP�t P�a �s6,sz� - - - (s6,sz�
inc��escP�a (3,oz� - - - (s,oz6�
NET CASH USED FOR CAPITAL AND
RELATEDFINANCINGACTIVITIES (7,040) (4,330,293) - - (4,337,333)
CASH FLOWS FROM INVESTINGACTIVITIES
Interestreceived 3,664 764 - - 4,428
NET INCREASE(DECREASE)IN CASH AND POOLED
INVESTMENTS 276,427 666,938 (455) 4 942,914
CASH AND POOLED INVESTMENTS,BEGINNING 650,001 159,021 455 - 809,477
CASH AND POOLED INVESTMENTS,ENDING $ 926,428 825,959 $ - $ 4 $ 1,752,391
130
EXHIBIT B-3
Business-Type Activities-Enterprise Funds
America's TotalOther
Refuse River Enterprise
Collection Transit Salt Project Funds
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)
OPERATING ACTIVITIES
Operatingincome(loss) $ (17,745) $ (3,777,79� $ 41,848 $ (22,889) $ (3,776,582)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 319,486 726,957 27,639 - 1,074,082
Cktange in assets and liabilities
(Increase)Decrease in receivables (63,288) 18,922 1 - (44,365)
(Increase)in inventories and prepaid items - (471) - - (471)
Increase(Decrease)in accounts payable 2,614 629,310 (72,830) (3,605) 555,489
Increase(Decrease)in accrued liabilities (16,312) 11,278 - - (5,034)
Increase(Decrease)in net pension liability 213,743 277,141 - - 490,884
(Increase)Decrease in deferred outtlows (13Q737) (194,477) - - (325,214)
Increase(Decrease)in deferred inflows (48,007) (81,665) - - (129,672)
Increase in net OPEB liability 2Q049 12,029 - - 32,078
TotalAdjustments 297,548 1,399,024 45,190 3,605 1,647,777
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 279,803 $ (2,378,772) $ 3,342 $ 26,494 $ (2,128,805)
131
THIS PAGE IS INTENTIONALLY LEFT BLANI�
132
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other deparhnents of the government and to other governxnent units, on a
cost-reimbursement basis.
General Service Fund - This fund is used to account for engineering, street, and general services
supplied to other departments.
Garage Service Fund - This fund is used to account for maintenance and repair services far the
City's automotive equipment.
Stores/Printing Fund - This fund is used to account for printing, supplies, and other services
provided to other departxnents.
Health Insurance Reserve Fund - This fund is used to accountfor health insurance costs.
Workers' Compensation Reserve Fund - This fund is used to account for warkers' compensation
costs.
133
CITY OF DUBUQUE,IOWA
COMBINll�TG STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2017
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ - $ 271,203 $ -
Receivables
Accounts - - -
Accrued interest - - -
Prepaid items - - -
Inventories - 59,857 17,347
TotalCurrentAssets - 331,060 17,347
NONCURRENT ASSETS
Capital assets
Machinery and equipment - 324,248 -
Accumulateddepreciation - (159,191) -
Net Capital Assets - 165,057 -
TotalNoncurrentAssets - 165,057 -
TotalAssets - 496,117 17,347
DEFERRID OUTFLOWS OF RESOURCES
Pension related deferred outflows 341,528 154,941 -
LIABILITIES
CiJRRENT LIABILITIES
Accounts payable - 27,476 -
Accruedpayroll - 3Q137 -
Due to other funds 25,287 - 13,725
TotalCurrentLiabilities 25,287 57,613 13,725
NONCURRENT LIABILITIES
Net pension liability 1,255,938 569,784 -
TotalNoncurrentLiabilities 1,255,938 569,784 -
Total Liabilities 1,281,225 627,397 13,725
DEFERRID INFLOWS OF RESOURCES
Pension related deferred inflows 49,885 22,631 -
NET POSITION
Net investment in capital assets - 165,057 -
Unrestricted (989,582) (164,027) 3,622
Total Net Position(Deficit) $ (989,582) $ 1,030 $ 3,622
134
EXHIBIT C-1
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 2,193,319 $ 1,118,880 $ 3,583,402
6Q599 - 6Q599
1,877 957 2,834
- 97,508 97,508
- - 77,204
2,255,795 1,217,345 3,821,547
- - 324,248
- - (159,191)
- - 165,057
- - 165,057
2,255,795 1,217,345 3,986,604
- - 496,469
704,944 1,118,237 1,85Q657
- - 3Q137
- - 39,012
704,944 1,118,237 1,919,806
- - 1,825,722
- - 1,825,722
704,944 1,118,237 3,745,528
- - 72,516
- - 165,057
1,SSQ851 99,108 499,972
$ 1,SSQ851 $ 99,108 $ 665,029
135
CITY OF DUBUQUE,IOWA
COMBINll�TG STATEMENT OF REVENiJES,EXPENSES,AND CIiANGES IN NET POSITION(DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDID JUNE 30,2017
General Garage Stores/
Service Service Printing
OPERATING REVENUES
Charges for sales and services $ 2,387,281 $ 2,007,007 $ 479,951
Other - 48,950 8
Total Operating Revenues 2,387,281 2,055,957 479,959
OPERATING EXPENSES
Employee expense 1,774,481 1,012,902 -
Utilities - 23,391 8,614
Repairs and maintenance - 48,959 -
Supplies and services - 828,223 452,235
Insurance - 2Q487 -
Depreciation - 36,655 -
TotalOperatingExpenses 1,774,481 1,97Q617 46Q849
OPERATING INCOME(LOSS) 612,800 85,340 19,110
NONOPERATING REVENUES(EXPENSES)
Gain on disposal of assets - 2,898 -
INCOME(LOSS)BEFORE TRANSFERS 612,800 88,238 19,110
TRANSFERSIN - - -
CHANGEINNETPOSITION 612,800 88,238 19,110
NET POSITION(DEFICIT),BEGINNING (1,602,382) (87,208) (15,488)
NET POSITION(DEFICIT),ENDING $ (989,582) $ 1,030 $ 3,622
136
EXHIBIT C-2
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 1Q825,344 $ 1,067,405 $ 16,766,988
66,418 2,872 118,248
1 Q 891,762 1,07Q277 16,885,236
- - 2,787,383
- - 32,005
- - 48,959
11,31 Q618 1,074,932 13,666,008
35,888 9Q581 146,956
- - 36,655
11,346,506 1,165,513 16,717,966
(454,744) (95,23� 167,270
- - 2,898
(454,744) (95,23� 17Q168
- 31,470 31,470
(454,744) (63,76� 201,638
2,005,595 162,874 463,391
$ 1,SSQ851 $ 99,108 $ 665,029
137
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 3Q 2017
General Cruage Stores/
Service Service Printing
CASH FLOWS FROM OPERATINGACTIVITIES
Cash received from customers $ 2,387,281 $ 2,007,007 $ 479,951
Cash payments to suppliers for goods and services - (904,345) (481,991)
Cash payments to employees for services (2,010,077) (1,001,462) -
Other operating receipts - 48,950 8
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 377,204 150,150 (2,032)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTI VITIES
Transfers to other funds - - -
Proceeds from interfund balances (377,204) - 2,032
Payment of interfund balances - - -
NET CASH PROVIDED BY(USED FOR)NONCAPITAL
FINANCINGACTIVITIES (377,204) - 2,032
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTI VITIES
Acquisition and construction of capital assets - - -
Proceeds from sale of capital assets - 2,898 -
NET CASH PROVIDED BY(USED FOR)CAPITAL AND
RELATEDFINANCINGACTIVITIES - 2,898 -
CASH FLOWS FROM INVESTINGACTIVITIES
Interestreceived - - -
NET INCREASE(DECREASE)IN CASH AND
POOLED INVESTMENTS - 153,048 -
CASH AND POOLED INVESTMENTS,BEGINNING - 118,155 -
CASH AND POOLED INVESTMENTS,ENDING $ - $ 271,203 $ -
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTI VITIES
Operatingincome(loss) $ 612,800 $ 85,340 $ 19,110
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation - 36,655 -
Change in assets and liabilities
(Increase)Decrease in receivables - - -
(Increase)Decrease in inventories and prepaid items - (6,726) (2,064)
Increase(Decrease)in accounts payable - 23,441 (19,078)
Increase(Decrease)in net pension liability 12,889 113,010 -
(Increase)Decrease in deferred outtlows (126,589) (75,960) -
Increase(Decrease)in deferred inflows (95,252) (30,702) -
Increase(Decrease)in accrued liabilities (26,644) 5,092 -
TotalAdjustments (235,596) 64,810 (21,142)
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 377,204 $ 150,150 $ (2,032)
138
EXHIBIT C-3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 10,85Q694 $ 1,067,405 $ 16,792,338
(11,436,943) (1,088,052) (13,911,331)
- - (3,011,539)
66,418 2,872 118,248
�si9,ssi� �i�,��s� �iz,zsa�
- 31,470 31,470
- - (375,172)
- 31,470 (343,702)
- - 2,898
- - 2,898
3,280 1,147 4,427
�si6,ssi� ia,saz �sas,66i�
2,709,870 1,104,038 3,932,063
$ 2,193,319 $ 1,118,880 $ 3,583,402
$ (454,744) $ (95,236) $ 167,270
- - 36,655
25,350 - 25,350
- (872) (9,662)
(9Q437) 78,333 (7,741)
- - 125,899
- - (202,549)
- - (125,954)
- - (21,552)
�6s,os�� ��,�i �i�9,ssa�
$ (519,831) $ (17,775) $ (12,284)
139
AGENCY FUNDS
The agency fund is used to repart resources held by the City in a purely custodial capacity.
Cable Equipment Fund — This fund is used to account for resources received under the cable
franchise agreement to support public, educational, and governmental access and internet use grants.
Dog Track Depreciation Fund — This fund is used to account far the resources held for
improvements at the greyhound racing facility.
140
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES EXHIBIT D-1
AGENCY FUND
FOR THE YEAR ENDED JUNE 3Q 2017
Balance Balance
Beginning End
of Yeu Additions Deductions of Yeu
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 724,778 $ 203,322 $ 315,453 $ 612,647
Prepaids 16,997 16,997
Accountsreceivable 51,414 - 1,036 50,378
TotalAssets $ 776,192 $ 220,319 $ 316,489 $ 680,022
LIABILITIES
Accountspayable $ 135,135 $ 24,722 $ 135,135 $ 24,722
Due to other agency 641,057 195,597 181,354 655,300
TotalLiabilities $ 776,192 $ 220,319 $ 316,489 $ 680,022
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 744,643 $ 120,650 $ 37,800 $ 827,493
Accruedinterest 1,418 708 1,418 708
Total Assets $ 746,061 $ 121,358 $ 39,218 $ 828,201
LIABILITIES
Due to other agency $ 746,061 $ 121,358 $ 39,218 $ 828,201
TOTAL AGENCY FUNDS
ASSETS
Cashandpooledcashinvestments $ 1,469,421 $ 323,972 $ 353,253 $ 1,440,140
Prepaids 16,997 16,997
Accountsreceivable 51,414 - 1,036 50,378
Accruedinterest 1,418 708 1,418 708
Total Assets $ 1,522,253 $ 341,677 $ 355,707 $ 1,508,223
LIABILITIES
Accountspayable $ 135,135 $ 24,722 $ 135,135 $ 24,722
Due to other agency 1,387,118 316,955 22Q572 1,483,501
Total Liabilities $ 1,522,253 $ 341,677 $ 355,707 $ 1,508,223
141
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142
Statistical Section (Unaudited)
June 30, 2017
City of Dubuque, Iowa
143
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144
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the inforxnation in the financial statements, note disclosures, and
required supplementary inforxnation says about the City's overall financial health.
Contents Paae
Financial Trends
These schedules contain trend inforxnation to help the reader understand how the City's
financial perforxnance and well-being have changed over time. 146
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 156
Debt Capacity
These schedules present inforxnation to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future. 160
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place
and to help make comparisons over time and with other governments. 171
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City's financial repart relates to the services the City
provides and the activities it performs. 174
Sources: Unless otherwise noted, the inforxnation in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
145
CITY OF DUBUQUE,IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2008 2009 2010 2011 2012
Governmental activities
Netinvestrnentincapitalassets $ 296,143,451 $ 298,855,346 $ 309,126,684 $ 329,416,245 $ 347,89Q769
Restricted 31,97Q77A 27,171,123 26,064,318 23,738,199 26,18Q100
u�reso-��e�d is,9s�,sai (s,zsq�is) (ii,zsb,siz) (a,s9i,ssi) (ib,s�b,9ss)
Totalgovemmentalactivitiesnetposition $ 347,102,016 $ 32Q745,754 $ 323,934,690 $ 348,263,063 $ 357,193,881
Business-type activities
Netinvestrnentin capitalassets $ 95,104,575 $ 12Q473,286 $ 124,805,513 $ 135,026,753 $ 132,237,734
Restricted 554,505 77Q157 129,642 893,519 957,802
Unrestricted 11,312,806 12,321,125 11,679,961 2,603,799 1Q665,596
Total business-t}pe activities netposition $ 106,971,886 $ 133,564,568 $ 136,615,116 $ 138,57A,071 $ 143,861,132
Primary govemment
Netinvestrnentincapitalassets $ 391,7A8,026 $ 419,328,632 $ 433,932,197 $ 464,442,998 $ 48Q128,503
Restricted 32,525,229 27,941,280 26,193,960 24,631,718 27,137,902
Unrestricted 3Q30Q647 7,04Q410 423,649 (2,287,582) (6,211,392)
Totalprimarygovemmentnetpositions $ 454,073,902 $ 454,31Q322 $ 46Q549,806 $ 486,787,134 $ 501,055,013
146
TABLE 1
Year
2013 2014 2015 2016 2017
$ 342,046,442 $ 354,732,451 $ 348,173,267 $ 369,244,904 $ 375,578,520
23,491,207 21,501,638 22,047,405 21,473,309 23,955,112
(8,361,688) (18,151,279) (49,579,334) (47,166,839) (43,921,629)
$ 357,175,961 $ 358,082,810 $ 32Q641,338 $ 343,551,374 $ 355,612,003
$ 138,498,777 $ 138,842,390 $ 148,487,126 $ 161,326,743 $ 164,448,390
6,011,848 5,315,519 7,796,668 4,254,907 3,796,752
(641,384) (593,202) (4,568,933) (7,339,071) 3,876,760
$ 143,869,7A1 $ 143,564,707 $ 151,714,861 $ 158,7A2,579 $ 172,121,902
$ 48Q545,219 $ 493,574,841 $ 496,66Q393 $ 53Q571,647 $ 54Q026,910
29,503,055 26,817,157 29,844,073 25,728,216 27,751,864
(9,00s,o�z) (is,�aa,asi) (sa,ias,zb�) (sa,sos,9io) (aqoaa,sb9)
$ 501,045,202 $ 501,647,517 $ 472,356,199 $ 501,793,953 $ 527,733,905
147
CITY OFDUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2008 2009 2010 2011 2012
Expenses
Govemmental activities:
Publicsafery $ 16,966,210 $ 22,038,265 $ 22,067,988 $ 23,759,068 $ 26,326,367
Publicworks 18,847,068 19,079,688 22,121,679 18,978,423 22,917,747
Health and social services 80Q566 849,237 852,099 1,072,347 913,954
Culture and rureation 1 Q857,409 12,640,716 11,446,084 1 Q911,733 12,749,558
Communiry and economic development 11,961,584 12,693,140 15,422,099 12,89Q841 22,03Q950
Generalgovemment 5,804,003 6,423,908 7,963,016 9,052,7M 6,133,983
Interestonlong-te�rndebt 2,577,417 3,164,126 3,101,897 3,794,951 3,794,912
Total govemmental activities expenses 67,814,257 76,889,080 82,974,812 79,96Q067 94,367,471
Business-rype activities:
Sewagedisposalworks 6,141,524 6,326,708 6,631,326 7,899,011 9,718,669
Waterutiliry 4,814,692 6,1OQ491 6,093,827 6,523,993 7,410,710
SW�rnwaterutiliry 1,706,735 2,13$198 2,213,144 2,811,321 2,750,767
Parkingfacilities 2,173,110 2,147,405 4,003,776 4,775,834 3,152,055
America'sRiverRoject 126,699 61,927 423,158 18Q086 22,787
Refusecollection 2,724,050 2,78$665 2,703,887 2,828,891 3,173,075
Transitsystem 2,703,983 2,625,145 2,832,066 2,J47,958 3,629,750
Salt 671,647 661,395
Totalbusiness-rypeactivitiesexpenses 2Q390,793 22,188,539 24,901,184 2$638,741 3Q519,208
Totalprimazygovemmentexpenses $ 8$205,050 $ 9Q077,619 $ 107,875,996 $ 10$59$808 $ 124,886,679
Program Revenues
Govemmental activities:
Charges for services
Public safery 2,088,723 2,02Q625 2,348,06{ 2,579,573 2,915,562
Publicworks 4,061,883 4,456,364 4,M6,583 5,331,667 5,178,439
Cultureandrureation 2,109,571 2,279,688 2,192,886 2,108,177 2,321,553
Other activities 1,382,889 1,557,597 2,412,880 2,53Q234 2,873,298
Operatinggrants and contributions 11,709,123 12,599,967 2Q83Q113 14,204,627 23,013,997
Capital grants and contributions 8,032,602 4,811,729 10,748,522 23,482,866 16,56Q811
Totalgovemmentalactivitiesprograrnrevenues 29,384,791 27,725,970 42,579,048 SQ237,144 52,863,660
Business-rype activities:
Charges for services
Sewagedisposalworks 5,484,079 5,904,535 5,893,730 6,6{3,974 7,827,281
Waterutiliry 4,875,530 5,32Q642 5,326,202 5,638,277 6,037,073
SW�rnwaterutiliry 1,766,334 2,291,249 2,282,625 2,993,539 3,18Q134
Parkingfacilities 2,141,607 2,224,185 2,399,843 2,75Q610 2,908,989
America'sRiverProject 2,140 - 7,000 - -
Refusecollution 2,71Q583 2,872,649 2,893,017 3,082,197 3,257,960
Transitsystem 195,817 196,260 273,433 193,236 278,835
Salt - - - 773,258 665,942
Operating grants and contributions 1,209,636 1,095,946 1,652,277 2,773,933 1,579,493
Capital grants and contributions 2,83Q263 3,613,321 3,80Q582 6,536,527 5,323,486
Totalbusiness-rypeactivitiesprogramrevenues 21,215,989 23,518,787 24,528,709 31,385,551 31,059,193
Totalprimazygovemmentprogramrevenues $ SQ600,780 $ 51,244,757 $ 67,107,757 $ 81,622,695 $ 83,922,853
148
TABLE 2
Year
2013 2014 2015 2016 2017
$ 28,292,481 $ 27,57$517 $ 25,525,937 $ 26,851,624 $ 3Q02Q343
21,607,536 21,306,882 19,207,837 7A,323,023 19,60$137
716,970 1,055,398 92$968 967,936 815,251
13,647,178 13,696,331 13,002,690 12,993,331 13,653,509
17,388,720 14,591,257 18,064,831 15,464,781 18,096,170
6,24$483 9,61Q084 6,42Q173 4,101,423 8,982,668
4,04Q640 3,684,993 3,903,667 2,963,134 3,467,685
91,951,008 91,523,462 87,054,103 87,665,252 J4,643,763
9,375,748 11,481,103 12,019,866 12,817,669 9,442,558
6,817,772 8,812,340 7,80Q393 6,483,229 5,92$941
3,347,3M 3,431,096 4,131,562 5,021,523 4,067,374
3,586,405 3,732,492 3,383,419 3,42Q796 3,126,823
22,770 33,579 24,000 21,521 22,893
3,46$859 3,75Q366 3,74Q4M 3,968,761 4,202,796
3,492,095 3,847,320 4,245,823 4,274,967 4,237,054
346,066 56,468 244,691 181,617 45,039
3Q457,019 35,144,764 35,59Q158 36,189,583 31,073,478
$ 122,408,027 $ 126,668,226 $ 122,6{4,261 $ 123,854,835 $ 125,717,241
2,495,737 2,624,455 2,532,114 2,713,065 2,93Q068
4,472,479 5,829,293 6,092,356 5,765,075 5,681,107
2,48$844 2,321,265 2,547,843 2,723,270 2,767,636
3,264,979 3,921,256 3,493,143 3,887,056 3,541,205
13,995,316 12,784,907 11,992,439 15,301,219 15,02$527
10,791,J45 12,162,6�V9 Q704,043 1$667,619 13,360,280
37,509,300 39,643,825 36,361,938 49,057,304 43,30$823
8,924,785 1Q025,673 1Q582,662 12,15$439 12,442,584
6,922,582 7,248,790 7,463,430 8,406,928 8,553,225
3,192,256 3,224,SM 3,49Q040 3,754,148 4,076,396
2,883,865 2,92Q148 3,036,214 3,247,383 3,286,947
- - - 1,605 4
3,346,795 3,70Q922 3,783,493 3,857,340 4,185,051
307,314 275,907 397,545 463,688 459,258
395,000 45,600 232,271 81,720 86,887
2,264,695 1,717,208 1,866,535 1,64$077 1,70Q171
1,24Q583 2,92Q942 1Q020,715 7,607,721 14,16Q820
79,477,875 32,079,694 40,872,905 41,227,M9 48,951,343
$ 66,987,175 $ 71,723,519 $ 77,234,843 $ 9Q284,353 $ 92,26Q166
(Continued)
149
CITY OFDUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2008 2009 2010 2011 2012
Net(Fxpense)/Revenue
Govemmentalactivities $ (3$429,46� $ (49,163,110) $ (4Q395,76{) $ (29,722,923) $ (41,503,811)
Business-rypeactivities 825,196 1,33Q7A8 (372,475) 2,746,810 539,985
Totalprimarygovemmentnetexpense $ (37,604,270) $ (47,832,862) $ (40,768,239) $ (26,976,113) $ (4Q963,82�
General Revenues and Other Changes in NetPosition
Govemmental activities:
General Revenues
Propertytaxes $ 22,744,563 $ 23,716,819 $ 7A,876,073 $ 28,249,114 $ 3Q816,614
Local option sales tae 8,02Q889 7,649,853 8,112,471 7,929,761 8,459,888
Hotel/moteltae 1,622,455 1,611,954 1,67$806 1,826,809 1,903,J44
Utiliryfranchisefees 1,516,123 1,486,792 1,591,712 2,48$858 2,272,481
Garning 15,346,468 9,627,391 8,209,761 13,327,223 8,785,453
Unrestricted investrnent eamings 2,741,499 2,215,413 1,339,709 668,363 1,529,149
Gain on saleofcapital assets 92,525 407,503 - 149,937 1,417,M8
Other 89$7A1 91$605 880,930 622,494 -
Transfers (2,252,155) (24,826,982) (3,104,762) (1,211,263) (4,749,948)
Totalgovemmentalactivities 50,73Q608 22,806,848 43,584,700 54,051,796 SQ434,629
Business-rype activities:
General Revenues
Unrestrictedinvestrnenteamings 63QM9 433,148 294,562 184,581 206,672
GainonsaleofcapitalassGs 11,736 2,304 23,699 19,337 84,178
Extraordinary item - - - (2,253,03� (7A3,722)
Transfers 2,252,155 7A,826,982 3,104,762 1,211,263 4,74QJ48
Totalbusiness-rypeactivities 2,893,940 25,262,434 3,423,023 (837,855) 4,797,076
Totalprimarygovemment $ 53,624,548 $ 48,069,282 $ 47,007,723 $ 53,213,441 $ 55,231,705
Change in Net Position
Govemmentalactivities $ 12,301,142 $ (26,356,262) $ 3,188,936 $ 7A,328,373 $ 8,93Q818
Business-rypeactivities 3,719,136 26,592,682 3,OSQ548 1,90$955 5,337,061
Totalprimazygovemment $ 16,020,278 $ 236,420 $ 6,23Q484 $ 26,237,328 $ 14,267,879
150
TABLE 2
(continued)
Year
2013 2014 2015 2016 2017
$ (54,441,708) $ (51,879,637) $ (SQ692,165) $ (38,607,J48) $ (51,334,940)
(979,144) (3,065,070) 5,282,747 5,037,466 12,522,340
$ (55,420,852) $ (54,J44,70/� $ (45,40Q418) $ (33,570,482) $ (3$812,600)
$ 32,66$554 $ 33,264,283 $ 36,277,719 $ 36,518,506 $ 39,67$473
8,764,787 8,211,366 8,76Q246 9,155,411 8,89Q046
1,953,763 2,006,514 2,623,551 2,128,042 2,821,745
2,568,347 2,609,421 2,82$688 4,36Q107 4,55$847
8,452,298 7,87$008 7,397,709 $44Q161 8,098,37A
201,153 777,958 66$134 1,082,165 335,577
907,122 483,782 19,495 813,492 83,720
(1,092,23� (2,444,84� (7,28$593) (97Q900) (1,071,163)
54,423,788 52,786,486 51,286,J49 61,517,984 63,395,569
65,351 135,461 185,356 407,528 231,746
384,697 18Q229 6,571 102,87A 54,074
(555,031) - - - -
1,092,236 2,444,846 7,28$593 979,900 1,071,163
987,253 2,76Q536 7,48Q520 1,49Q252 1,356,983
$ 55,411,M1 $ 55,547,022 $ 58,767,469 $ 63,008,236 $ 6{,752,552
� (i�,9zo) � 9oe,s�9 � s9a,�sa � zz,9io,ose � iz,oeqbz9
8,109 (304,534) 12,763,267 6,527,718 13,879,323
$ (Q811) $ 602,315 $ 13,35$O51 $ 2Q437,754 $ 25,93Q952
151
CITY OF DUBUQUE,IOWA
FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2008 2009 2010 2011* 2012
General Fund
Reserved $ 1,699,825 $ 4,864,701 $ 5,199,760 $ - $ -
Unreserved 17,982,016 14,206,181 8,622,705 - -
Nonspendable - - - 868,631 5,613,359
Reshicted
Assigned - - - 8,904,490 5,549,803
Unassigned - - - 6,139,306 9,371,016
Total general fund $ 19,681,841 $ 19,07Q882 $ 13,822,465 $ 15,912,427 $ 2Q534,178
All Other Govemmental Funds
Reserved $ 31,887,038 $ 19,634,305 $ 24,404,656 $ - $ -
Unreserved,reported in:
Special revenue fimds 7,431,931 5,981,390 4,011,022 - -
Debt service fimd - - - - -
Capital projects funds 7,875,448 5,659,214 (989,025) - -
Permanent fimds 33,958 35,550 33,273 - -
Nonspendable - - - 1Q320,305 1Q975,468
Reshicted - - - 1$010,570 31,362,126
Committed - - - 5,203,472 5,843,671
Unassigned - - - (377,363) (429,344)
Total all other govemmental funds $ 47,228,375 $ 31,31Q459 $ 27,459,926 $ 33,156,984 $ 47,751,921
*Classification changed in 2011 due to adoption of GASB 54.
152
TABLE3
Yeu
2013 2014 2015 2016 2017
$ - $ - $ - $ - $ -
6,646,278 6,549,063 6,082,043 6,049,052 5,585,672
2,208
3,434,440 1,904,805 647,772 1,015,935 1,59Q065
8,806,171 7,356,066 8,693,524 1Q908,497 12,582,596
$ 18,886,889 $ 15,809,934 $ 15,423,339 $ 17,973,484 $ 19,76Q541
$ - $ - $ - $ - $ -
9,092,520 8,640,780 1,183,423 553,292 944,856
3Q738,046 23,62Q615 3Q496,183 27,45Q187 28,103,397
1Q827,172 1Q548,592 12,298,896 7,635,502 6,592,154
$ 5Q657,738 $ 42,809,987 $ 43,978,502 $ 35,638,981 $ 35,64Q407
153
CITY OFDUBUQUE,IOWA
CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIN'IED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2008 2009 2010 2011 2012
Revenues
Taxes $ 33,89$692 $ 34,454,146 $ 36,252,156 $ 4Q428,8J4 $ 43,443,669
Special assessments 177,585 25Q372 318,178 232,535 596,138
Licenses and pe�mits 1,153,479 1,088,386 1,115,472 1,17Q922 1,57Q022
Intergovemmental 14,256,523 15,796,822 27,31Q624 26,171,082 37,574,783
Chargesforservices 7,833,151 $029,189 8,063,284 8,723,086 9,796,379
FinesandforFeits 18$603 199,839 27A,601 454,117 525,389
Investrnenteamings 2,731,953 2,206,382 1,34$615 654,587 1,511,437
Contributions 6,134,002 1,369,759 2,333,995 1,797,621 1,578,376
Gaming 15,346,468 9,627,391 8,209,761 13,327,223 8,785,453
Miscellaneous 1,269,376 1,60Q679 2,111,834 2,075,262 1,319,558
Totalrevenues 82,989,782 74,622,965 87,288,520 94,535,379 106,201,154
Expenditures
Cmrent
Publicsafery 21,542,661 21,335,192 21,979,729 23,95Q386 24,476,772
Public works 16,331,107 14,261,551 19,251,625 14,429,415 12,385,979
Health and socialservices 797,6{4 815,873 813,609 1,MQ114 828,837
Culture and rureation 1Q277,787 12,227,506 14,909,517 11,279,951 1Q873,474
Communiry and economic development 11,847,512 11,953,279 14,654,816 12,361,176 22,237,140
Generalgovemment 6,31Q939 5,836,839 6,368,308 7,686,979 6,335,947
Debt service
Principal 1,762,375 2,169,678 2,651,765 2,82Q371 3,224,680
Interest 2,406,431 3,095,166 3,145,735 3,321,157 3,22Q546
Capitalprojects 15,351,848 24,274,120 14,831,118 15,102,893 23,459,891
Total expenditures 86,628,304 95,969,2M 98,606,222 91,992,392 107,M3,216
Excess(deficiency)ofrevenues over
(under)expenditures (3,638,522) (21,346,239) (11,317,702) 2,542,937 (842,062)
Other Financing Souroes(Uses)
Issuanceofbonds 23,083,696 5,905,000 4,722,176 6,996,722 27,215,363
Discountonbonds (266,158) (48,51� (31,990) (39,547) (71,689)
Premiums on bonds - - 554,796 1,642 123,990
Issuanceofrefundingbonds 2,965,000 - 8,885,000 705,000 -
r�yme�ew�er��aeano�as���owag�e �z,s�s,000� - �9,aos,000� �e9o,000� -
Transfers in 14,801,589 7,451,152 7,993,297 15,85Q523 8,773,387
Transfers out (1$185,109) (9,084,228) (1Q562,137) (18,961,892) (18,336,603)
Inswancerecovery - - - 628,482 132,425
Saleofcapitalassets 2,901,190 593,956 62,610 753,153 2,221,877
Totalotherfinancingsouroes(uses) 22,425,208 4,817,36�V 2,218,752 5,244,083 2Q058,750
Net change in fund balances $ 18,786,686 $ (16,528,875) $ (9,09$950) $ 7,787,020 $ 19,216,688
Debt service as a percentage of noncapital
expenditures 6.55 % 7.68 % 7J4 % 8.49 % 7.65 %
154
TABLE4
Year
2013 2014 2015 2016 2017
$ 45,44Q973 $ 46,034,361 $ SQ49Q204 $ 51,58Q084 $ 55,949,111
175,486 154,692 85,501 111,193 261,233
1,271,771 1,136,941 1,19$420 1,48Q643 1,505,564
26,58Q831 23,OSQ052 2Q82$524 29,302,824 26,314,297
$952,179 1Q264,257 10,711,7A3 1Q919,854 1Q816,025
484,128 455,219 362,661 421,925 484,687
18Q016 756,809 66$134 1,082,165 335,577
37Q154 678,561 789,268 1,440,405 689,237
$452,298 7,878,008 7,397,709 8,440,161 8,098,324
1,315,915 1,705,275 1,466,542 1,367,875 1,811,681
93,223,751 92,114,175 93,99$206 106,147,129 106,265,736
26,506,714 27,6�V4,190 27,570,773 28,036,551 29,155,128
13,416,108 13,J42,772 11,20Q427 14,597,823 11,728,716
68Q466 1,M9,1J4 939,172 1,015,987 868,280
11,218,019 12,351,497 12,30Q454 11,909,029 12,397,294
1$678,496 14,42Q980 16,41$909 13,473,413 16,474,553
5,035,108 5,898,293 5,977,605 6,436,114 7,287,586
3,182,240 4,595,808 4,910,735 1Q302,412 17,615,698
3,991,115 3,65Q6J4 3,577,879 3,707,268 3,579,807
16,636,698 18,779,651 14,829,037 31,SM,581 16,26Q851
99,344,96�V 102,333,079 97,724,J41 12Q983,178 115,367,913
�e,izi,zis� �io,zis,9oa� �s,�ze,�ss� �ia,sse,oa9� �9,ioz,i���
6,577,268 - 11,137,321 3,933,882 23Q000
- - 72,852 292,521 319,384
4,J49,148 - - - 11,023,700
(4,949,148) - - 4,65Q000 -
15,795,630 15,862,516 18,073,553 17,397,007 18,814,586
�ie,9si,zos� �i�,z�a,�ez� �zs,zai,�9s� �is,s�e,9m� �i9,9i�,zi9�
49,209 59,796 106,288 86,359 41,345
2,438,837 666,648 36Q436 1,063,814 378,861
7,379,741 (705,802) 4,50$655 9,046,676 1Q89Q657
$ 1,258,528 $ (1Q924,70� $ 781,920 $ (5,789,373) $ 1,78$480
8.57 % 9.51 % 9.97 % 15.17% 20.J4 %
155
CITY OF DUBUQUE,IOWA
TA%ABLE AND ASSESSED VALUE OF PROPERTY TABLE 5
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Total
Taxable
Value to
Real Property Exemptions Total Total
Levy Fiscal Taxa.ble Assessed Real Taxa.ble Assessed Assessed Total Direct
Yeu Yeu Value Value Property Value Value Value Tax Rate
2006 2008 $ 1,823,304 $ 2,870,178 $ 8,939 $ 1,814,365 $ 2,87Q178 6321.00% % 1031685%
2007 2009 1,949,071 3,171,681 9,298 1,939,773 3,171,681 61.16 9.96904
2008 2010 2,033,135 3,239,112 9,246 2,023,889 3,239,112 62.48 9.85777
2009 2011 2,159,622 3,349,823 8,885 2,150,737 3,349,823 6420 10.02742
2010 2012 2,243,474 3,406,186 8,875 2,234,599 3,406,186 65.60 10.45111
2011 2013 2,337,129 3,476,638 8,872 2,328,257 3,476,638 66.97 10.78478
2012 2014 2,398,151 3,503,774 8,799 2,389,352 3,503,774 68.19 11.02586
2013 2015 2,522,048 3,686,202 8,729 2,513,319 3,686,202 68.18 11.02588
2014 2016 2,508,933 3,723,003 8,631 2,500,302 3,723,003 67.16 11.02590
2015 2017 2,652,700 3,914,425 8,086 2,644,614 3,914,425 67.56 11.16739
Source: Dubuque County Assessor's and Auditor's Offices
156
CITY OF DUBUQUE,IOWA
PROPERTY TAX RATES TABLE6
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER$1,000 ASSESSED VALUE
Dubuque Board of Ratio of
Levy Fiscal Dubuque School Education and Area 1 Dubuque Dubuque
Year Year Ciry District Independents Voc.Tech County Total Ciry W Total
2006 2008 $ 1031690 $ 16.40925 $ 0.63160 $ 0.61270 $ 6.42691 $ 3439736 29.99 %
2007 2009 9.96904 16.89000 0.95250 0.55713 6.41459 34J8326 28.66
2008 2010 9.85777 16.87918 0.57970 0.99471 6.40435 34J1571 28.40
2009 2011 10.02742 16.88349 0.55740 1.03532 6.50193 35.00556 28.65
2010 2012 10.45111 16.87685 0.67766 1.07379 6.49167 35.57108 2938
2011 2013 10J8477 15.40388 OJ1653 0.98407 6.4317A 3432049 31.42
2012 2014 11.02586 14.60281 OJ5274 0.90455 6.4317A 33J1720 32J0
2013 2015 11.02588 13.99630 0.66355 0.90807 6.4317A 33.02504 3339
2014 2016 11.02590 14.05629 0.63899 0.91036 638779 33.01933 3339
2015 2017 11.16739 14.97697 0.63146 0.93757 629673 34.01012 32.84
Sepuate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
Yeu Yeu General Transit Insurance Benefits Service Total
2006 2008 $ 8.10000 $ 0.60729 $ 021760 $ 139201 $ - $ 1031690
2007 2009 8.10000 0.66727 0.08685 1.11492 - 9.96904
2008 2010 8.10000 0.60000 021492 0.90583 0.03702 9.85777
2009 2011 8.10000 0.54469 Q20531 1.12441 0.05300 10.02741
2010 2012 8.10000 035273 0.19508 1.75052 0.05278 10.45111
2011 2013 8.10000 0.49516 0.13965 2.02267 0.02729 10.78477
2012 2014 8.10000 038382 0.16288 233093 0.04823 11.02586
2013 2015 8.10000 0.48268 0.16595 223209 0.04516 11.02588
2014 2016 8.10000 0.48461 0.16428 2.16440 0.11261 11.02590
2015 2017 8.10000 0.49739 0.14963 230637 0.11400 11.16739
Source: Dubuque County Auditor's Office.
157
CITY OF DUBUQUE,IOWA
PRINCIPAL PROPERTY TAXPAYERS TABLE 7
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2017 2008
Percentage of Percentage of
Total City Total City
Taxable Taxa.ble Taxable Taxa.ble
TaYpayer Value Rank Value Value Rank Value
Peninsula Gaming Company LLC $ 63,779 1 2.40 %
KennedyMallInc. 38,926 2 1.47 $ 26,372 1 1.45 %
Walter Development LLC 28,270 3 1.07 11,288 6 0.62
Progressive Processing LLC(Hormel) 25,370 4 0.96
Medical Associates Realty LLC 21,353 5 0.80 13,631 4 0.75
The McGraw Hill Comparues Ina 16,225 6 0.61 11,437 5 0.63
Queck Capital Management LLC 15,853 7 0.60
Platinum Holdings LLC 15,749 8 0.59 11,179 7 0.61
Nordshom,Ina 14,800 9 0.56 16,834 3 092
Fle�teel Indushies Ina 13,332 10 0.50
Otto A LLC 17,500 2 0.96
Asbury Dubuque LLC 9,896 8 0.54
Minglewood Limited PartnersMp 9,948 9 0.55
American Trust&Savings Bank 9,947 10 0.55
$ 253,657 9.56 % $ 138,032 7.58 %
Source: Dubuque County Auditor's Office
158
CITY OF DUBUQUE,IOWA TABLE 8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Total Percent of Total Tas Ratio of
Tas Current Cmrent Delinquent Total Tas Collections Outstanding Delinquent
Fiscal Levy Levy Tas Tases Tas Collections W Total Delinquent TasesW Total
Year Year (1) Collections Collected Collections (2) TasLevy Tases TasLevy
2008 2007 18,211 18,160 99J % 3 18,163 99J % 215 1.18
2009 2008 18,992 18,690 98.4 5 18,695 98.4 262 138
zoio zoo9 i9,iza i9,in 99.9 (io) i9,io� 99.9 zoz i.ob
2011 2010 19,906 19,793 99.4 13 19,806 99.5 276 139
2012 2011 21,340 21,339 100.0 1 21,340 99.9 185 0.87
2013 2012 22,789 22,752 99.8 7 22,759 99.9 182 0.80
2014 2013 23,993 23,915 99J 8 23,923 99J 211 0.88
2015 2014 7A,866 7A,715 99.4 7 7A,722 99.4 362 1.46
2016 2015 7A,944 7A,889 100.0 84 7A,973 100.0 288 1.15
2017 2016 26,435 26,318 99.6 2 26,320 99.6 354 134
(1)Excludes tas increment levy.
(2)Includes tases collected in June by the County but not received by the City until July.
159
CITY OF DUBUQUE
RATIOS OF OUTSTANDINGDEBT BY TYPE
LAST TEN FISCAL YEARS
Govemmental Activities Business-
General TaxIncrement TaxIncrement General
Fiscal Obligation Financing Financing Other Loans Obligation
Year Bonds Bonds Notes Payable Bonds
2008 $ 21,752,907 $ 24,879,116 $ 1,279,885 $ - $ 11,384,371
2009 25,941,693 24,363,262 1,169,684 15Q000 14,448,770
2010 27,887,864 24,449,674 1,049,696 282,857 23,957,802
2011 32,561,048 23,037,222 1,931,348 282,857 25,254,652
2012 53,087,811 22,258,283 1,767,664 4,735,714 35,108,003
2013 56,517,165 21,92Q537 1,235,903 5,638,871 34,921,131
2014 52,568,648 21,556,435 1,03Q036 5,541,428 32,738,862
2015 59,614,941 21,165,946 811,608 5,444,285 45,868,394
2016 58,869,812 20,764,818 625,429 5,347,142 46,806,473
2017 53,80Q719 2Q333,690 451,763 4,65Q000 44,487,023
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
2016 data changed to include premium and discounts in the outstanding computation.
(1)Population and personal income data can be found in Table 18.
* Personal Income unavailable at report date
160
TABLE 9
Type ACtrvlhes
Capital Other Total Percentage of
Loan Revenue Loans Primary Personal Per
Notes Bonds Payable Govemment Income (1) Capita(1)
$ 611,977 $ 49Q000 $ - $ 6Q398,256 3 % $ 2,174
3,914,076 1,434,713 39Q890 71,813,088 3 1,245
8,289,621 1,115,430 371,978 87,404,922 4 1,515
33,195,408 6,777,793 2,252,109 125,292,437 5 2,174
61,957,749 6,521,188 331,235 185,767,647 7 3,223
75,415,431 6,26Q299 309,304 202,218,641 8 3,508
82,924,949 14,151,437 286,263 21Q798,058 8 3,657
85,477,970 34,543,432 262,055 253,188,631 10 4,393
104,156,549 34,196,999 236,623 271,003,845 10 4,637
11Q513,944 33,84Q566 5,209,900 273,287,605 * 4,648
161
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING TABLE 10
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
Percentage of Percentage of
General Taxa.ble Taxa.ble Assessed Assessed
Fiscal Obligation Value of Value of Value of Value of Per
Yeu Bonds Proper[y Property Proper[y Proper[y Capita
2008 $ 33,134 $ 1,814,365 1.83 % $ 2,870,178 1.15 % 574
2009 40,387 1,939,773 2.08 3,171,681 127 700
2010 51,770 2,023,899 2.56 3,239,112 1.60 899
2011 57,700 2,159,622 2.68 3,349,823 1.73 1,003
2012 87,962 2,243,474 3.93 3,406,186 2.59 1,530
2013 91,312 2,337,129 3.91 3,476,638 2.63 1,586
2014 85,162 2,398,151 3.56 3,503,774 2.43 1,480
2015 105,166 2,522,048 4.18 3,686,202 2.86 1,830
2016 105,451 2,508,933 421 3,723,003 2.84 1,808
2017 98,037 2,652,700 3.71 3,914,425 2.51 1,672
*Prior yeu information ktas been modified to net GO Bonds with the fund balance in Debt Service.
*General Obligation Bonds ue netted with the fund balance in the Debt Service fund.
162
CITY OF DUBUQUE,IOWA
DIRECT AND OVERLAPPING DEBT TABLE 11
AS OF JUNE 30,2017
Tax Tax
NetGeneral Incremerrt Incremerrt
Obligation Financing Bonds Financing Sales Tax Loans Percentage Amount
Bonded Debt Notes Revenue Payable Applicable Applicable to
Jurisdic[ion Outstanding(1) Bonds toCity Government
Direct,CityofDubuque,Iowa $ 53,80Q719 $ 2Q333,690 $ 451,763 $ - $ 4,650,000 100.00 % $ 79,236,172
Overlapping:
Dubuque County 11,435,000 - - - 324,245 0.06 % 7,056
Dubuque Community School Dishict - - - 54,513,000 - 99.88 % 54,447,584
Northeast Iowa Community College - - - - 41,925,000 0.06 % 25,155
TotalOverlapping 11,435,000 - - 54,513,000 42,249,245 54,479,795
Total $ 65,235,719 $ 2Q333,690 $ 451,763 $ 54,513,000 $ 46,899,245 $ 133,715,967
Source: Dubuque County Auditor,Dubuque Community School District and Northeast Iowa CommuniTy College
(1)Excludes debt reported in enterprise funds.
Note: Overlapping governments are those that coincide,at least in part,with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping govemments that is bome by the residents and businesses of
Dubuque. This process recognizes that,when considering the city's ability to issue and repay long-term debt,the entue debt burden bome by
the residents and businesses should be taken into account. However,this does not imply that every taxpayer is a resident, and therefore respo
nsible for repaying the debt, of each overlapping govemment.
m
w
CITY OF DUBUQUE, IOWA
LEGAL DEBT NI.ARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2008 2009 2010 2011
Debitlimit $ 148,824 $ 163,621 $ 167,247 $ 174,333
Total net debt
applicabletolimit 60,485 76,182 101,152 92,443
Legal debit margin $ 88,339 $ 87,439 $ 66,095 $ 81,890
Total net debt
applicable to the debt
limit as a percentage
of debt limit 40.64% 46.56 % 60.48 % 53.03 %
164
TABLE 12
2012 2013 2014 2015 2016 2017
$ 177,668 $ 181,668 $ 183,621 $ 193,114 $ 196,031 $ 207,174
142,316 143,303 149,923 173,597 165,838 143,800
$ 35,352 $ 38,365 $ 33,698 $ 19,517 $ 30,193 $ 63,374
80.10 % 78.88 % 81.65 % 89.89 % 84.60 % 69.41 %
Legal Debt Margin Calwlation for Fiscal Year 2017
Estimated actual value $ 4,143,482,182
Debt limit- 5%of total acbxal valuation $ 207,174,109
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund) $ (143,800,280)
Legal debtmargin $ 63,373,829
165
CITY OF DUBUQUE,IOWA
REVEN[JE DEBT COVERAGE TABLE 13
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Gross Operating NetRevenue NextFiscalYear's
Fiscal Revenues Expenses AvailableFor Deb[ServiceRequiremen[s Coverage
Year (1) (2) Debt Service Principal Interest Total (3)
W ATER UTILITY
2008 $ 4,933 $ 3,959 $ 974 $ 39 $ 57 $ 96 10.15
2009 5,391 5,196 195 70 52 122 1.60
2010 5,353 5,153 200 70 182 252 0J9
2011 5,680 a 5,316 364 255 238 493 0J4
2012 6,087 5,895 192 260 231 491 039
2013 6,944 5,391 1,553 432 344 776 2.00
zoia �,zss �,ssa (ioi) z�s zis a9s (o.zo)
2015 7,511 6,322 1,189 285 211 496 2.40
2016 8,508 4,826 3,682 473 305 778 4.73
2017 8,589 4,678 3,911 488 291 779 5.02
STORMWATER UTILITY
2009 2,402 1,309 1,093 75 58 133 822
2010 2,357 1,320 1,037 100 178 278 3.73
2011 3,023 1,679 1,344 231 7A3 6 474 2.84
2012 3,211 1,497 1,714 462 268 730 235
2013 3,194 2,019 1,715 320 309 d 629 1.87
2014 3,7A0 1,833 1,407 331 311 c 642 2.19
2015 3,551 2,162 1,389 341 356 c 697 1.99
2016 3,948 2,140 1,808 352 346 c 698 2.59
2017 4,27A 2,601 1,623 836 797 c 1,633 0.99
SEWAGE DISPOSAL WORKS
2009 6,084 5,093 991 - 7 7 141.57
2010 5,995 5,331 664 33 382 415 1.60
2011 6,699 6,029 670 34 1,129 6 1,163 0.58
2012 7,878 7,018 860 1,719 1,443 3,162 027
2013 8,951 6,113 2,838 2,326 1,423 d 3,749 OJ6
2014 1Q083 6,754 3,329 2,603 1,358 c 3,961 0.84
2015 1Q629 6,950 3,679 2,610 1,435 c 4,045 0.91
2016 12,237 7,702 4,535 2,652 1,454 c 4,106 1.10
2017 12,475 6,082 6,393 2,707 1,442 c 4,149 1.54
PARKING BONDS
2008 2,27A 1,495 729 7A0 23 263 2.77
2009 2,270 1,412 858 250 12 262 327
Parking revenue bonds matured in 2010.
a)Restated Prin&Int to remove SRF debt service classified as subordinate debt for FY2010 thru FY 2016.
b)Restated W reflect actual SRF principal and interest.
c)Includes estimated SRF debt service payments for next fiscal year based on FY ending debt balance.
d)contains estimates of prin/int pymts.
(1)Total revenues(including interest).
(2)Total operating expenses exclusive of depreciation.
(3)Coverage is computed by dividing net revenue available for debt service by debt service requirement.
166
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY TABLE 14
LAST TEN FISCAL YEARS
Water Sewer Gallons
Fiscal Year Revenue Revenue Billed
2008 $ 4,747,206 $ 5,348,001 1,971,517,064
2009 5,085,319 5,684,459 1,836,957,848
2010 5,209,591 5,710,768 1,822,051,488
2011 5,561,910 6,502,740 1,903,364,420
2012 6,298,768 8,682,927 1,914,175,940
2013 6,701,771 8,472,382 1,945,227,547
2014 7,028,091 9,756,996 1,845,151,329
2015 7,231,393 10,417,833 1,864,028,948
2016 8,159,240 11,772,847 1,883,797,577
2017 8,248,796 12,000,115 1,844,997,668
Source: Cash basis receipt ledgers.
*Revenue includes penalties and investment earnings collected.
New in 2015 -revenue does not include sales tax. All years reflect this change.
WATER RATE SCHEDULE HISTORY
Unit Price by Fiscal Year
Steps Gallons 2017 2016 2015 2014 2013 2012 2011
First 22,440 � $ 0.00474 $ 0.00447 $ 0.00406 $ 0.00387 $ 0.00355 $ 0.00309 $ 0.00294
Next 89,760 a� 0.00387 0.00365 0.00332 0.00316 0.00290 0.00252 0.007A0
Next 261,800 a� 0.00361 0.00340 0.00309 0.00294 0.00270 0.00235 0.0027A
Next 374,000 a� 0.00280 0.00301 0.00274 0.00261 0.00239 0.00208 0.00198
Excess a� 0.00280 0.00264 0.007A0 0.00229 0.00210 0.00183 0.00174
167
CITY OF DUBUQUE,IOWA
WATER METERS BY RATE CLASS TABLE ls
LAST TEN FISCAL YEARS
Fiscal Year Residential Commercial Industrial Government Total
2008 19,970 1,878 70 45 21,963
2009 2Q058 1,895 72 48 22,073
2010 2Q204 1,887 71 48 22,210
2011 2Q338 1,904 79 51 22,372
2012 2Q532 1,902 79 52 22,565
2013 2Q753 1,921 80 53 22,807
2014 2Q887 1,945 81 68 22,981
2015 2Q969 1,968 83 76 23,096
2016 21,157 1,972 84 104 23,317
2017 21,522 2,061 83 114 23,780
168
CITY OF DUBUQUE,IOWA
LARGEST WATER AND SEWER CUTOMERS TABLE 16
FISCAL YEAR 2017
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot Inc#155296 $ 389,690 1 4.72 %
Hormel Foods Corporation* 177,151 2 2.15 $ 400,120 1 333 %
Prairie Fums Dairy Inc 121,670 3 1.48
Hormel Foods Corporation* 105,165 4 127 232,069 2 1.93
Krieg Boys 52,827 5 0.64
Finley Hospital 51,540 6 0.62 86,739 4 0.72
Premier Linen&Dry Clearung 50,848 7 0.62 105,303 3 0.88
Perunsula Gaming Co LLC 48,273 8 0.59 65,153 9 0.54
Tablemound InvestmenTs 41,690 9 0.51 84,860 5 0.71
Mercy Medical Center* 39,873 10 0.48
StoneMll Nursing Home 66,235 8 0.55
Grand Hubor Resort&Waterpuk 56,532 10 0.47
Alpine Puk Community 69,262 7 0.58
Dubuque Historical Society 77,063 6 0.64
Total Receipts $ 8,248,796 $ 12,000,115
*Same company,sepuate accounts.Previously combined several accounts under same business,now listed seperately.
169
CITY OF DUBUQUE, IOWA
SALES TAX INCREMENT BONDS TABLE 1�
FISCAL YEAR ENDING JUNE 30,2017
Estimated Second Lien Remaining
Sales Tax Senior Lien Remaining Series 2014 Revenues
Increment Series 2015A Revenues After Net Debt After Second
Fiscal Revenue Net Debt Service Senior Lien Service Lien Debt
Year Receipts* (1) Debt Service (2) Service
2015 * $ 2,037,489 $ - $ 2,037,489 $ - $ 2,037,489
2016 * 2,532,846 - 2,532,846 - 2,532,846
2017 * 3,945,134 - 3,945,134 (323,100) 3,622,034
2018 4,744,708 (762,650) 3,982,058 (323,100) 3,658,958
2019 4,782,875 (762,650) 4,02Q225 (323,100) 3,697,125
2020 4,783,907 (762,650) 4,021,257 (323,100) 3,698,157
2021 5,574,673 (762,650) 4,812,023 (323,100) 4,488,923
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zoz� 6,9sz,ssz �z,�6s,�i9� a,iss,sis �i,s6s,000� z,szo,sis
zozs 6,9a�,a9a �z,�6s,s9a� a,i�9,ioo �i,s6s,000� z,sia,ioo
zoz9 6,�zs,�so �z,�6�,soo� s,9s6,aso �i,s6s,000� z,s9i,aso
2030 6,25Q000 (2,768,800) 3,481,200 - 3,481,200
2031 4,467,912 (686,400) 3,781,512 - 3,781,512
2032 2,217,912 - 2,217,912 - 2,217,912
2033 2,25Q000 - 2,25Q000 - 2,25Q000
*Actual receipts.
(1)Net of capitalized interest and the debt service reserve fund.
(2)Net of capitalized interest
170
CITY OF DUBUQUE,IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS TABLE ls
LAST TEN CALENDAR YEARS
Per Capita Public
Personal Median School Unemployment
Personal Income Age Enrollment Rate
Year Population Income (1) (2) (3) (4)
2008 57,686 $ 2,237,466,882 $ 38,787 38 1Q614 3.8 %
2009 57,686 2,155,437,390 37,365 37 1Q697 62
2010 57,686 2,188,952,956 37,946 37 1Q517 6.4
2011 57,637 2,354,759,635 4Q855 37 1Q467 5.8
2012 57,637 2,453,952,912 42,576 37 1Q469 52
2013 57,637 2,489,053,845 43,185 39 1Q513 4.6
2014 57,637 2,56Q293,177 44,421 39 1Q578 4.4
2015 57,637 2,645,653,574 45,902 38 1Q634 3.7
2016 58,436 2,734,454,184 46,794 38 1Q588 3.9
2017 58,799 * * 38 1Q556 2.9
Data Sources:
(1) U.S. Department of Commerce,Bureau of Economic Analysis.
(2) Greater Dubuque Development Corporation.
(3) Dubuque Community School Dishict
(4) Iowa Deparhnent of Employment Services as of June 30.
* Unavailable atreport date.
171
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172
CITY OF DUBUQUE,IOWA
PRINCIPAL EMPLOYERS TABLE 19
CURRENT YEAR AND NINE YEARS AGO
2017 2008
Percentage of Percentage of
#of Total City #of Total City
Employer Employees Rank Employment{1) Employees Rank Employment{1)
Dubuque Community Schools 2,670 1 4.88 % 1,800 1 3.44 %
JohnDeere (2) 2,600 2 4.75 1,627 2 3.10
Mercy Medical Center 1,360 3 2.49 1,324 3 2.53
Medical Associates 1,030 4 1.88 743 6 1.42
Unity Point Health-Finley Hospital 900 5 1.65 920 4 1.76
City of Dubuque 820 6 1.50 750 5 1.43
Andersen Windows 750 7 137 604 7 1.15
Cottingham &Butler 572 8 1.05
Sedgwick 550 9 1.01
Dubuque Bank&Trust and
Heartland Financial USA, 538 10 0.98
Prudential Retirement 450 10 0.86
Dubuque County 450 10 0.86
Flexsteel 550 8 1.05
Woodward Communications,Inc. 500 9 0.95
11,790 21.56 % 9,718 18.55 %
Source: Greater Dubuque Development Corp.
(1)Based on the percentage of total employment for Dubuque area from the U.S. Deparhnent of Labor,Bureau of
Labor Statistics.
(2)Located just outside City Limits.
173
CITY OF DUBUQUE,IOWA
FULL-TIME EQUIVALENT CITY GOVERND�IENT EMPLOYEES BY FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
Full-Time
2008 2009 2010 2011
Public Safety
Emergency Communications 11.00 13.00 13.00 13.00
Fire 90.00 90.00 90.00 90.00
Police 101.00 108.67 110.84 11334
Building Services 7.00 8.00 8.00 9.00
Public Works
Public Works 87.00 88.00 87.42 87.42
Engineering 25.00 26.00 26.00 27.00
Health&Social Services
Health Services 4.00 4.00 4.00 4.00
Human Rights 3.00 3.00 3.00 3.00
Cultural and Recreation
Civic Center 0.15 0.15 0.15 0.15
Library 18.00 18.00 18.00 18.00
Park 21.92 21.92 22.51 22.50
Recreation 7.93 7.93 8.43 8.93
Community&Economic Development
Community/Economic Dev 3.00 3.00 3.00 3.00
Housing Services 18.00 22.00 22.00 2225
Planning Services 8.00 8.00 8.00 8.00
General Govemment
Auport 12.00 12.00 12.00 12.00
Cable TV 2.00 2.00 2.00 2.00
City Clerl�s Office 3.00 3.00 3.00 3.00
City Manager's Office 11.00 13.50 15.00 15.00
Finance 14.00 14.00 14.00 14.00
Legal 3.00 4.00 4.66 5.00
Information Services 7.00 7.00 7.00 7.00
Business Type
Water 23.00 23.00 24.00 25.00
Water&Resource Recovery Center 18.00 18.00 18.00 18.00
Parking 7.00 7.50 9.00 9.00
Transit 7.00 7.00 6.00 7.00
Total 512.00 532.67 539.01 546.59
Source: City Budget Records
Departrnenis with employees who ue allocated to more than one function ue reflected in the uea with lugest number of employees.
174
TABLE 20
Equivalent as of June 30
2012 2013 2014 2015 2016 2017
13.00 13.00 13.00 13.00 13.00 14.00
90.00 90.00 90.00 90.00 90.00 90.00
114.25 115.00 115.0 8 115.8 8 116.00 116.00
9.00 9.00 924 11.66 12.00 12.00
87.42 86.17 86.42 86.42 86.42 86.42
27.00 29.00 29.00 29.00 30.00 30.00
4.00 4.00 4.00 4.00 4.00 4.00
4.00 5.00 5.00 5.00 5.00 5.00
0.15 0.15 0.15 0.15 0.15 0.15
18.00 19.00 19.00 19.00 19.00 19.00
23.50 23.50 23.50 23.50 23.50 22.50
9.93 9.93 9.93 10.93 11.93 11.93
3.00 3.00 4.00 4.00 2.00 2.00
23.00 25.80 27.00 26.00 21.00 25.00
8.00 8.00 8.00 8.00 8.00 8.00
12.00 12.00 12.00 12.00 12.00 12.00
2.00 2.00 2.00 2.00 2.00 2.00
3.00 3.00 3.00 3.00 3.00 3.00
14.00 15.00 15.00 16.00 16.00 16.00
14.00 14.00 14.0 8 14.8 8 15.00 15.00
5.00 5.00 5.00 5.00 5.00 5.00
7.00 7.50 8.00 8.00 8.00 8.00
25.00 25.00 26.00 26.00 25.00 25.00
18.00 18.00 18.00 18.00 17.00 17.00
9.00 9.00 9.00 9.00 9.00 8.00
6.00 6.00 632 8.00 13.00 13.00
54925 557.05 561.72 568.42 567.00 570.00
175
CITY OF DUBUQUE,IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAD�I
LAST TEN FISCAL YEARS
Fiscal-
2008 2009 2010 2011
Public Safety
Police
Physical arrests 5,090 6,325 6,365 6,350
Traffic violations 6,881 8,801 8,901 12,289
Parking violations 4Q741 36,457 37,056 35,799
Fire
Number of calls answered 4,699 4,480 4,557 4,884
Inspections conducted 624 443 1,035 555
Sewer
Sewage system
Daily average treatment in gallons 10,31Q000 7,981,000 9,068,000 8,132,000
Maximum daily capacity of treatment plant in
gallons 13,SOQ000 21,131,000 21,131,000 23,24Q000
Water systems
Daily average consumption in gallons 7,812,000 7,845,000 7,684,000 7,636,000
Maximum daily capacity of plant in gallons 17,OOQ000 18,OOQ000 18,OOQ000 18,OOQ000
Refuse(Municipal Collection)
Tonnage 11,798 10,774 1 Q615 1 Q660
Sources: Various City Deparhnents.
Statistics updated for fiscal year 2006, 2007&2008.
176
TABLE21
Year
2012 2013 2014 2015 2016 2017
6,319 6,106 5,532 3,767 3,397 5,077
11,836 12,089 8,959 7,354 9,058 9,063
34,910 35,516 36,768 37,635 38,880 33,953
5,307 4,792 5,165 5,603 5,750 5,990
589 512 471 791 993 1,649
7,817,000 1Q987,000 7,091,000 7,237,000 7,016,000 7,377,000
23,24Q000 23,24Q000 24,SOQ000 24,SOQ000 24,SOQ000 24,SOQ000
7,226,000 6,953,000 7,235,000 6,956,000 7,068,184 7,20Q000
18,OOQ000 18,OOQ 000 18,OOQ000 18,OOQ000 18,OOQ000 18,OOQ000
11,180 1 Q 535 10,311 1 Q690 11,098 11,284
177
CITY OF DUBUQUE,IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal-
2008 2009 2010 2011
Public safety
Police
Stations 1 1 1 1
Patrol units 19 19 22 22
Fire
Stations 6 6 6 6
Aerial trucks 3 3 3 3
Public works
Streets
Miles(1) 317 320 321 325
Street lights(1) 1,855 1,877 1,916 1,931
Health and social services
Hospital 2 2 2 2
Number of patient beds 405 405 389 389
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 47 47 48 48
Acreage 898 898 901 901
Recreation
Civic center 1 1 1 1
Swimming pools 2 2 2 2
Softball fields 8 7 7 7
Baseball fields 1 1 1 1
Tennis courts 19 20 20 20
Sewer
Sewage system
Miles of sanitary sewer(1) 290 295 300 300
Miles of storm sewers(1) 122 143 144 150
Number of treatmentplants 1 1 1 1
Number of service connectors 21,633 21,347 21,599 21,702
Water systems
Miles of water mains 316 317 318 319
Number of service connectors 21,243 21,347 21,986 22,092
Number of city owned fire hydrants 2,812 2,831 2,843 2,854
Sources: Various City Deparhnents.
(1) City GIS System
178
TABLE 22
Year
2012 2013 2014 2015 2016 2017
1 1 1 1 1 1
22 22 22 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
328 329 331 333 332 336
2,081 2,084 2,110 2,161 2,162 2,184
2 2 2 2 2 2
389 389 389 373 373 373
1 1 1 1 1 1
1 1 1 1 1 1
51 51 51 53 53 53
1,001 1,001 1,001 974 974 974
1 1 1 1 1 1
2 2 2 2 2 2
7 7 7 11 11 11
1 1 1 1 1 1
20 20 20 20 20 20
304 304 307 320 322 326
155 141 144 145 147 152
1 1 1 1 1 1
22,393 22,428 22,888 22,928 23,119 23,343
320 321 315 318 329 7
22,161 22,536 22,702 22,787 22,970 23,443
2,863 2,879 2,336 2,346 2,380 2,450
179
CITY OF DUBUQUE,IOWA Table 23
RETAIL SALES
LAST TEN CALENDAR YEARS
Taxable Number of
Year Retail Sales Businesses
2009 $ 961,287,890 2,026
2010 971,OSQ048 2,043
2011 1,014,284,468 2,009
2012 1,06Q222,499 1,993
2013 1,057,837,212 2,008
2014 1,24Q664,593 3,337
2015 1,305,893,119 3,347
2016 1,316,561,626 2,997
2017 * *
Data Sources:
Iowa Department of Revenue
Prior years not available
*Unavailable at report date
180
Compliance Section
June 30, 2017
City of Dubuque, Iowa
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182
EideBailly
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Independent Auditor's Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditing Standards
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in GovernmentAuditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund inforxnation of the City of Dubuque, Iowa, (City) as of and far the
year ended June 30, 2017, and the related notes to the financial statements, which collectively comprise
the City's basic financial statements, and have issued our report thereon dated December 21, 2017.
The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented component unit
which was audited by other auditors, were not audited in accordance with GavernmentAudifing
Standards, and accordingly, this repart does not extend to those financial statements.
The financial statements of Dubuque Convention and Visitors Bureau, a discretely presented component
unit, were not audited in accordance with GavernmentAuditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and perfornung our audit of the financial statements, we considered the City's internal control
over financial reporting(internal control)to deterxnine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effecriveness of the City's internal control.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial
reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses
or significant deficiencies may exist that have not been identified. However, as described in the
accompanying schedule of findings and questioned costs, we identified a deficiency in internal control
that we consider to be a material weaknesses.
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375 E.Horsetooth Rd.Bldg.4200 Fort Collins,CO 805253198 TF 800.4082929 T 970223.8825 F 970223.OS V EOE
A deficiency in inte�nal cont�ol exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent, or
detect and correct, misstatements on a timely basis. A mate�ial weakness is a deficiency, or a combination
of deficiencies, in internal control, such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We
consider the deficiency described in the accompanying schedule of findings and questioned costs as item
2017-A to be a material weakness.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness,yet important enough to merit attention by those charged with
governance.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement,we performed tests of its compliance with certain provisions of laws,regulations,
contracts, and grant agreements, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However,providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly,we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Gove�nment Auditing Standa�ds. However,we noted certain immaterial instances of non-
compliance which are described in Part IV of the accompanying schedule of findings and questioned
costs.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30,2017 are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City and are reported in Part IV of the accompanying schedule of
findings and questioned costs. Since our audit was based on tests and samples,not all transactions that
might have had an impact on the comments were necessarily audited. The comments involving statutory
and other legal matters are not intended to constitute legal interpretations of those statutes.
City's Responses to Findings
The City's responses to the finding identified in our audit is described in the accompanying schedule of
findings and questioned costs. The City's response was not subjected to the auditing procedures applied
in the audit of the financial statements and, accordingly,we express no opinion on it.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Gove�nment Auditing Standa�ds in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
�GT
Fort Collins, Colorado
December 21,2017
184
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Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control Over Compliance Required by the Uniform Guidance
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque, Iowa's (City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of the City's major federal programs far the year ended June 30, 2017. The City's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs.
Management's ResponsibiliTy
Management is responsible for compliance with federal statutes, regulations, and the terms and conditions
of its federal awards applicable to its federal programs.
Auditor's ResponsibiliTy
Our responsibility is to express an opinion on the compliance for each of the City's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in GavernmentAuditing Standards, issued
by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code of
FederalRegulationsPart 200, UniformAdministrafiveRequirements, CostPrinciples, andAudit
Requirements forFederalAwards(Uniforxn Guidance). Those standards and the Uniforxn Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the compliance requirements referred to above that could have a direct and material effect on a major
federal program occurred. An audit includes examining, on a test basis, evidence about the City's
compliance with those requirements and perforxning such other procedures as we considered necessary in
the circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal deterxnination of the City's compliance.
Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs identified in the
summary of auditor's results section of the accompanying schedule of findings and questioned costs for
the year ended June 30, 2017.
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375 E.Horsetooth Rd.Bldg.4200 Fort Collins,CO 805253198 TF 800.4082929 T 970223.8825 F 970223.OS V EOE
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the compliance requirements referred to above. In planning and performing our audit of
compliance,we considered the City's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with the Uniform Guidance, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly,we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in inte�nal cont�ol ove�compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions,to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis.A mate�ial weakness in inte�nal cont�ol ove�compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a compliance requirement will not be prevented,
or detected and corrected, on a timely basis.A significant deficiency in inte�nal cont�ol ove�compliance
is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance,yet important enough to merit attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses and significant
deficiencies may exist that have not been identified. We did not identify any deficiencies in internal
control over compliance that we consider to be material weaknesses. However,we identified certain
deficiencies in internal control over compliance, as described in the accompanying schedule of findings
and questioned costs as items 2017-001,2017-002 and 2017-003 that we consider to be significant
deficiencies.
The City's responses to the internal control over compliance findings identified in our audit are described
in the accompanying schedule of findings and questioned costs and corrective action plan. The City's
responses were not subjected to the auditing procedures applied in the audit of compliance and,
accordingly,we express no opinion on the responses.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of the
Uniform Guidance. Accordingly,this report is not suitable for any other purpose.
�GT
Fort Collins, Colorado
December 21, 2017
186
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2017
Pass-[hrough
Federal Entiry Amounts Passed-
Federal GranWr/Pass-Through CFDA Identifying Through W
GranWr/PrograrnorClusterTiHe Number Number Expenditures Subrecipienfs
U.S.Dwartrnent of Commerce
Directprograrn:
Economic Development Cluster
EconomicAdjustrnentAssistance 11307 $ 286600 $
U.S.Deoartrnent of Housine and Urban Develooment
Directprograrn:
CDBG-Entitlement Grants Cluster:
Communiry Development Block
Grants/Entitlement Grants-2014 14.218 861,946 119,869
Communiry Development Block
Grants/Entitlement Grants-2015 14.218 233,174 -
Communiry Development Block
Grants/Entitlement Grants-2016 14.218 305 363
Total CDBG-Entitlement Grants Cluster 1 400 483 119 869
Pass-[hrough program from:
Iowa Department of Economic Development
Communiry Development Block Grants/
State's Prograrn and Non-Fntitlement
Granfs in Hawaii 14128 08-DRH-212 5$346
Directprograrn:
Shelter Plus Care 14.238 71 118
Directprograrn:
CDBG-Disaster Recovery Grants-Pub.L.No.113-2 Cluster
NationalDisasterResilienceCompetition 14.272 6J4681
Directprogarn:
Sution 8 ProjuGBased Cluster
Lower Income Housing Assistance Program-
Sution 8 Moderate Rehabilitation 14.856 75 532
Housing Voucher Cluster
Section 8 Housing Choice Vouchers-IA087V 14.871 5,466,591 -
Section 8 Housing Choice Vouchers-IA087FSH 14.871 132 476
Total Housing Voucher Cluster 5 599 067
Lead-Based PaintHazard Control in
Privately-Owned Housing 14.900 1 295 576
Total U.S.Department of Housing and Urban Development 9 1 J4 803 119 869
U.S.Dwartrnent ofJustice
Pass-[hrough program from:
Iowa Departrnent of Justice:
ViolenceAgainstWomenFo�rnulaGrants 16.588 VW-16-42B-CJ 3577
Public Safery Partnership and Communiry
PolicingGrants 16J10 14HoGSpots-04 2798
Directprograrn:
Fdward Byme Memorial Justice
AssistanceGrantPrograrn 16J38 14,745 -
Pass-[hrough program from:
Dubuque Counry SheriR's Office:
Fdward BymeMemorial Justice
AssistanceGrantPrograrn 16J38 14-JAG-111022 28350
43,095
Directprograrn:
Body Wom Carnera Policy and Implementation 16.835 52 248
Total U.S.Department of Justice 101 718
187
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2017
Pass-[hrough
Federal Entiry Amounts Passed-
Federal GranWr/Pass-Through CFDA Identifying Through W
GranWr/PrograrnorClusterTitle Number Number Fxpenditures Subrecipients
U.S.DepartmentofTransportation
Dirutprograrn:
AiiportlmprovementProgram-Sitework 20.106 $ 78$867 $ -
AiiportlmprovementProgram-Sitework 20.106 45$823 -
AiiportlmprovementProgram-LandsidePaving 20.106 278,332
AiiportImprovementProgram-Te�minalServiceRoad 20.106 22Q085
AiiportlmprovementPrograrn-BuildingConstruction 20.106 61,007 -
AiiportImprovementPrograrn-OverheadLighting 20.106 34,314 -
AiiportlmprovementPrograrn-UtiliryImprovements 20.106 21,287 -
AiiportlmprovementProgram-BoardingBridge 20.106 17,588
AiiportImprovementProgram-Te�minalApron 20.106 4,316
AiiportlmprovementPrograrn-BuildingDesign 20.106 3,059 -
AiiportImprovementProgram-PavementStudy 20.106 2718
1 890 396
Highway Planning and Construction Cluster:
Pass-[hrough program from:
Iowa Department of Transportatio¢
Highway Planning and Construction 20.205 HDP-2100-(679)J131 1,557,252 -
Highway Planning and Construction 20.205 HDP-2100-(657)J131 1,323,491 -
Highway Planning and Construction 20.205 S1P-U-2100(634)J031 1,069,799 -
Highway Planning and Construction 20.205 HDP-2100-(66{)J131 565,804 -
Highway Planning and Construction 20.205 S1P-U-2100(681)J031 41,407 -
Highway Planning and Construction 20.205 TAP-U-2100(683)-8I31 411,J43 -
Highway Planning and Construction 20.205 SB-IA-2100(675)-TT31 945,772 -
Highway Planning and Construction 20.205 TCSP-052-2(129)-9531 1,311 -
Highway Planning and Construction 20.205 EDP-2100-(684)-7Y31 154,193 -
Highway Planning and Construction 20.205 EDP-2100-(684)-7Y31 34,002 -
Highway Planning and Construction 20.205 HDP-2100-(655)J031 65 551
Total Highway Planning and Construction Cluster 6170 525
Federal Transit Cluster:
Directprograrn:
Federal TransiL Fo�rnula Grants 20.507 1,012,571 -
Federal TransiL Fo�rnula Grants 20.507 99,120 -
Pass-[hrough program from:
Iowa Departrnent of Transportatio¢
Federal TransiL Fo�rnula Grants 20.507 2016-017-210-16 290 419
1,402,110
Directprograrn:
StateofGoodRepairGrantsPrograrn 20.525 IA-040124-00 1,147,567 -
State of Good Repair Grants Prograrn 20.525 IA-95-X021-00 1,084,932
State of Good Repair Grants Prograrn 20.525 IA-M-0124 18 024
2 250 523
Total Federal Transit Cluster 3 652 633
Pass-[hrough prograrn from:
Iowa Departrnent of Transportatio¢
Fo�rnula Grants for Rural Areas 20.509 ICB-CY16 7 238
Transit Services Prograrn Cluster:
Enhanced Mobiliry of Seniors and
Individuals with Disabilities 20.513 IA-2016-026-210-17 44 213
Highway Safery Cluster
Iowa Department of Public Safery:
State and Communiry Highway Safery 20.600 PAP 17-402-MOOP 3Q838 -
State and Communiry Highway Safery 20.600 PAP 16-402-MOOP 7 281
Total Highway Safery Cluster 38 119
Total U.S.DepartrnentofTransportation 11 803 124
188
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2017
Pass-[hrough
Federal Entiry Amounts Passed-
Federal GranWr/Pass-Through CFDA Identifying Through W
GranWr/PrograrnorClusterTitle Number Number Fxpenditures Subrecipients
Environmental Protection Aeencv
Dirutprograrn:
Brownfields Training Research,and Tuhnical
Assistance Grants and CooperativeAgreements 66.814 $ 88 584 $
Brownsfields Assessment and Cleanup
Cooperative Agreements-BF97741401 66.818 96,025
Brownsfields Assessment and Cleanup
Cooperative Agreements-BF97756201 66.818 24 632
120 657
Total Environmental Protection Agency 209 7A1
U.S.Department ofHealth and Human Services
Pass-[hrough prograrn from:
Dubuque Counry Health Department
Hospital Preparedness Prograrn(HPP)
and Public Health Emergency
Preparedness(PHEP)Aligned
CooperativeAgreements 93.074 5887BT22 439
Comoration forNational and Communitv Service
Pass-[hrough prograrn from:
Iowa Commission on Volunteers:
AmeriCoips 94.006 16-AC-14 17$494 -
AmeriCoips 94.006 15-AC-14 28934
Total Coiporation for National and Communiry Service 207 428
U.S.Deoartment of Homeland SecuriN
DirectProgram:
Assistance W Firefighters Grant 97.M4 7 252
Total $ 21 810 605 $ 119 869
189
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2017
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of
Dubuque, Iowa, and is presented on the modified accrual basis of accounting for governxnental funds and the full
accrual basis of accounting far the proprietary funds. The information in this schedule is presented in accordance
with the requirements of the Uniform Guidance. The City received federal awards both directly from federal
agencies and indirectly through pass-through entities. Federal financial assistance provided to a subrecipient is
treated as an expenditure when it is paid to the subrecipient.
Note 2 - Significant Accounting Policies
Governmental and proprietary fund types account for the City's federal grant activity. Therefore, expenditures in
the schedule of expenditures of federal awards are recognized on the modified accrual basis —when they become
a demand on current available financial resources in the governxnental fund types and on the full accrual basis —
when expenditures are incurred in the proprietary fund types. The City's summary of significant accounting
policies is presented in Note 1 in the City's basic financial statements.
The City has not elected to use the 10%de minimis cost rate.
190
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Section I— Summary of the Independent Auditor's Results
FINANCIAL STATEMENTS
Type of auditor's report issued Unxnodified
Internal control over financial reporting:
Material weaknesses identified Yes
Significant deficiencies identified not
considered to be material weaknesses None reported
Noncompliance material to financial statements noted? No
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified No
Significant deficiencies identified not
considered to be material weaknesses Yes
Type of auditor's report issued on compliance for major programs: Unxnodified
Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516: Yes
Identification of major programs:
Name of Federal Proaram CFDA Number
Section 8 Housing Choice Vouchers 14.871
Lead-Based Paint Hazard Control in Privately-Owned Housing 14.900
Airpart Improvement Program 20.106
Dollar threshold used to distinguish between type A
and type B programs: $750,000
Auditee qualified as low-risk auditee? No
191
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Section II—Findinas Related to the Financial Statements
MATERIAL WEAKNESS
2017-A Material Audit Adjustments and Financial Statement Preparation and Review
Criteria: A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and repart financial data reliably in accordance with generally
accepted accounting principles and the requirements of the Uniforxn Guidance.
Condifion: We idenrified material adjustments to the Comprehensive Annual Financial Repart
(CAFR), which are necessary in order to present accurate financial inforxnarion. Due to the
magnitude and number of adjustments required, we have concluded that the current process for
financial statement preparation and review does not allow sufficient time for management to
adequately review the financial statements prior to providing a draft report at the beginning of the
audit.
Cause: There is a limited number of office employees with varying levels of experience with the
reporting requirements. This significantly limits the City's review procedures.
Effect: The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendafion: We recommend that finance staff continue to receive relevant training and that
additional review procedures be implemented in preparing the financial statements.
View ofResponsible Officials: Management agrees with finding.
192
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Section III—Federal Award Findinas and Questioned Costs
2017-001 U.S Department of Housing and Urban Development
CFDA 14.900, IALHB0604-15, 2015
Lead-Based Paint Hazard Control
Procurement and Suspension and Debarment
Significant Deficiency in Internal Control over Compliance
Criteria: The Uniforxn Guidance, Secrion 200.303 Internal Controls, requires the non-federal entity
must establish and maintain effective internal controls over federal awards that provide reasonable
assurance that awards are being managed in compliance with federal statutes, regulations and the
terxns and conditions of the federal award.
Suspension and Debarment Requirements and Lead Certification
Hazard Control Grants shall be for lead-based paint hazard control in eligible target housing, as
defined under Section 217 of Public Law 104-134(the Oxnnibus Consolidated Rescissions and
Appropriations Act of 1996, 110 Stat. 1321, approved April 26, 1996) as amended by Section
1011(a) of the Residential Lead-Based Paint Hazard Reducrion Act of 1992 (Title X). Funds shall
be available only for projects conducted using contractors and inspectors certified, through an EPA
authorized program, ar trained in lead-safe work practices using a IILJD approved curriculum.
Non-federal entities are also prohibited from contracting with or making subawards under covered
transacrions to parties that are suspended or debarred. "Covered transacrions" include those
procurement contracts for goods and services awarded under a non-procurement transaction(e.g,
grant or cooperative agreement)that are expected to equal or exceed $25,000 or meet certain other
criteria as specified in 2 CFR section 180.220. All non-procurement transactions entered into by a
recipient(i.e., subawards to subrecipients), irrespective of award amount, are considered covered
transactions, unless they are exempt as provided in 2 CFR section 180.215.
When a non-federal entity enters into a covered transaction with an entity at a lower tier, the non-
federal entity must verify that the entity, as defined in 2 CFR section 180.995 and agency adopting
regulations, is not suspended or debarred or otherwise excluded from participating in the
transacrion. This verificarion may be accomplished by (1) checking the Excluded Parties List
System (EPLS)maintained by the General Services Administration(GSA) and available at
httus://www.sam.gov/vortal/vublic/SAM/, (2) collecring a cerrification from that enrity, ar(3)
adding a clause or condition to the covered transaction with that enrity.
Condition: We tested compliance and internal controls over suspension and debarxnent including
lead abatement certification and noted two contractors out of twelve, in which there was no
documentation to support the contractor was not suspended or debarred. Nor was there
documentarion that the City perforxned a lead abatement certificarion check to determine if the
contractor was certified.
Cause: There is a lack of effective controls over the suspension, debarment, and certification
compliance requirements.
Effect: Failure to provide documentation of the suspension and debarment check being perforxned
along with lead abatement certificates may result in disallowed cost.
193
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Section III—Federal Award Findinas and Questioned Costs
Quesfioned Costs: None reported.
Context/Sampling: Program expenditures far the year ended June, 30, 2017, contained only the
twelve tested"covered transaction". L ead based paint cerrification contained two contractors
without documentarion of cerrification. Nonstarisrical sampling was used.
Repeat Finding from Prior Years: No.
Recommendation: We recommend that management review and improve the approval and
documentation process for program expenditures to identify "covered transactions" and ensure
suspension and debarxnent and lead abatement certification checks are perforxned.
View ofResponsible Officials: Management agrees with finding.
2017-002 U.S Department of Housing and Urban Development
CFDA 14.900, IALHB0604-15,2015
Lead-Based Paint Hazard Control
Reporting and Matching
Significant Deficiency in Internal Control over Compliance
Criteria: The Uniforxn Guidance, Secrion 200.303 Internal Controls, requires the non-Federal entity
must establish and maintain effective internal controls over Federal awards that provide reasonable
assurance that awards are being managed in compliance with Federal statutes, regulations and the
terxns and conditions of the Federal award.
As described in the 2017 compliance supplement, Part 3 includes the requirements of 2 CFR part
200, subpart F. We consider factors such as the City's internal controls and the internal controls
over compliance requirements and tests as prescribed in 2 CFR part 200, subpart F.
Condition: We reviewed 3 of 8 reports. We noted the each of these reports tested indicated no
approval of the report had occurred.
Cause: Due to insufficient controls over the reporting approval process (documentarion) and
matching requirements (documentarion), the controls are not operating as designed to prevent,
detect and correct errors timely.
Effect: Failure to document the review and approval of reporting requirements may result in
inaccurate reporting and failure to meet matching requirements.
Quesfioned Costs: None reported.
Context/Sampling: A nonstatistical sample of 3 out of 8 reports submitted were tested.
Repeat Finding from Prior Years:No
194
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Section III—Federal Award Findinas and Questioned Costs
Recommendation: We recommend the City review the approval process for submitting reports. The
City needs to exercise judgxnent in deterxnining the most appropriate and cost effecrive internal
control in a given environxnent or circumstance to provide reasonable assurance for compliance
with Federal program requirements.
Views ofResponsible O�cials:Management agrees with finding.
2017-003 U.S Department of Housing and Urban Development
CFDA 14.900, IALHB0604-15, 2015
Lead-Based Paint Hazard Control
Allowable Costs
Significant Deficiency in Internal Control over Compliance
Criteria: The Uniforxn Guidance, Section 200.303 Internal Controls requires the non-Federal entity
must establish and maintain effective internal controls over Federal awards that provide reasonable
assurance that awards are being managed in compliance with Federal statutes, regulation and the
terxns and conditions of the Federal award.
As described in the 2017 compliance supplement Part 3 includes the requirements of uniform
guidance and 2 CFR part 200, subpart F. EB considers factors such as the City's internal controls
and the internal controls over compliance requirements and tests as prescribed in 2 CFR part 200,
subpart F.
Improper Payments
Under uniform guidance, Public Law(Pub. L.)No. 107-300, the Ixnproper Payments Information
Act of 2002, as amended by Pub. L. No. 111-204, the Improper Payments Elimination and
Recovery Act, Executive Order 13520 on reducing improper payments, and the June 18, 2010
Presidential memorandum to enhance payment accuracy, Federal agencies are required to take
actions to prevent improper payments, review Federal awards for such payments, and, as
applicable, reclaim improper payments. Improper payment includes this specific criteria:
"Any payment that an agency's review is unable to discern whether a payment was proper as a
result of insufficient or lack of documentation."
Condition: We tested 60 expenditures for the June 30, 2017 fiscal year. We noted the following in
our testing:
• 1 of the 60 transactions tested involved ineffective controls over approval of a payment
causing a $10 overpayment to the vendor.
195
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Section III—Federal Award Findinas and Questioned Costs
Cause: Due to insufficient controls over the expenditure approval process (documentarion)the
controls are not operaring as designed(or not properly implemented to prevent, detect and correct
errors timely.
Effect: Failure to document the correct expenditures charged to the grant may result in disallowed
costs.
Quesfioned Costs:None reported.
Context/Sampling: A nonstatistical sample of 1 out of 60 expenditures submitted for
reimbursement.
RepeatFinding from Prior Years:No
Recommendafion: We recommend that the City review the approval process for expenditures to
deterxnine why the controls failed and to design and implement controls that will prevent, detect
and correct this from occurring in the future. The City needs to exercise judgment in deterxnining
the most appropriate and cost effective internal control in a given environment or circumstance to
provide reasonable assurance for compliance with Federal program requirements. The uniform
guidance also refers non-Federal entities to the following two documents for best practices:
• "Standards for Internal Control in the Federal GovernmenY' (Green Book)issued by
the Comptroller General.
• "Internal Control Framework" issued by the Committee on Sponsoring
Organizations (COSO)
Views ofResponsible O�cials:Management agrees with finding.
196
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Part IV: Other Findings Related to Required Statutory Reporting:
2017-IA-A Certified Budget—Disbursements during the year ended June 30, 2017 exceeded the amount
budgeted in the community and economic development and debt service functions. Chapter 384.20
of the Code of Iowa states, in part, "Public monies may not be expended or encumbered except
under an annual or continuing appropriation."
Recommendation—The budget should have been amended in accordance with Chapter 384.18 of
the Code of Iowa before disbursements were allowed to exceed the budget.
Response —The budget will be amended in the future, if applicable.
2017-IA-B Questionable Expenditures—No expenditures that may not meet the requirements of public
purpose as defined in an Attorney General's opinion dated April 25, 1979, were noted.
2017-IA-C Travel Expense—No expenditures of City money far travel expenses of spouses of City officials
or employees were noted.
2017-IA-D Business Transactions—Business transactions between the City and City officials or employees
are detailed as follows:
Name, Title, and Transaction
Business Connection Descrivtion Amount
Ric Jones, City council member,
owner of RJ Productions Music Entertainxnent Services $ 650
John Hefel, City employee, spouse is
owner of A Frame of Mind Framing & Gallery Services 532
Peggy Kraus-Abidi, City employee, Services 38
daughter is Hayden J Kraus
In accordance with Chapter 3625(3)(j)of the Code of Iowa, the transacrions with A Frame of Mind
Framing & Gallery and Hayden J. Kraus do not appear to represent conflicts of interest since total
transactions were less than $1,500 during the fiscal year.
2017-IA-E Bond Coverage— Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to ensure the coverage is
adequate for current operations.
2017-IA-F Council Minutes—No transactions were found that we believe should have been approved in the
Council minutes but were not.
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City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2017
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
2017-IA-G Deposits and Investments—No instances of non-compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were
noted.
2017-IA-H Revenue Debt—No instances of non-compliance with the provisions of the Sewage Disposal
Works, Water Utility, or Stormwater Utility revenue debt resolutions were noted.
2017-IA-I Solid Waste Tonnage Fees Retained—No instances of non-compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 455B.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
2017-IA-J Financial Assurance—The Dubuque Metropolitan Area Solid Waste Agency, a component unit of
the City, has demonstrated financial assurance for closure and postclosure care costs by establishing
a local government dedicated fund as provided in 567-113.14(6)of the Iowa Administrative Code.
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