CAFR Report Submission for Fiscal Year Ended June 30, 2019City of Dubuque Action Items # 2.
ITEM TITLE:
SUMMARY:
SUGGESTED DISPOSITION:
Copyrighted
April 20, 2020
Submission of Fiscal Year Ended June 30, 2019
Comprehensive Annual Financial Report (CAFR) and
Auditor's Communication with Those Charged with
Governance
City Manager transmitting the Fiscal Year Ended June 30,
2019 Comprehensive Annual Financial Report (CAFR).
Budget Staff will make a presentation.
A representative from the City's auditing firm, Eide Bailey,
LLP, will be available to answer questions.
Suggested Disposition: Receive and File; Presentation
ATTACHMENTS:
Description
Comprehensive Annual Financial Report 6/30/19 -
MVM Memo
CAFR Staff Memo
6/30/19 CAFR
6/30/19 Compliance Report
6/30/19 Letter to Council
FY19 CAFR Staff Presentation (revised)
FY19 CAFR Finance Staffing Turnover Chart
FY19 CAFR Transit Compliance Memo
FY19 CAFR Housing CDBG Compliance Changes
Type
City Manager Memo
Staff Memo
Supporting Documentation
Supporting Documentation
Supporting Documentation
Supporting Documentation
Supporting Documentation
Supporting Documentation
Supporting Documentation
Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
kritil
All-A.aia City
111111
2007.2012.2013
2017*2019
SUBJECT: Submission of Fiscal Year Ended June 30, 2019 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance
DATE: April 16, 2020
The City of Dubuque received an unmodified Auditor's opinion for the Fiscal Year 2019
financial statements. This means that the City's financials are materially accurate, there
were no disagreements between City staff and audit staff, and all proposed audit
adjustments were made.
The financial audit is performed yearly and is required by the Municipal Oversight Law
and governmental auditing standards.
A financial audit is an examination of the financial records of a governmental unit that is
conducted in accordance with generally accepted auditing standards. The result of the
audit is a report rendered by an independent auditor of how appropriately a
government's financial statements depict its financial condition and results of its
operations. An independent audit is one performed by persons not in any way affiliated
with the government being audited in order to ensure complete objectivity and
professionalism.
The independent auditor's opinion will usually fall into one of four categories:
1. Unmodified Opinion —The statements present fairly the financial position and
results of operations of the government unit on a basis consistent with prior
years. This is the so called "clean opinion."
2. Modified Opinion —The opinion is like the above but with certain exceptions to
generally accepted accounting principles which are clearly explained in the
opinion.
3. Adverse Opinion —This "bad opinion" states that the financial statements do not
fairly present the financial position and the results of operation of the
governmental unit. The opinion would include the reasons for the adverse
opinion.
4. Disclaimer of Opinion —The auditor cannot render an opinion usually because
the financial records are incomplete or the scope of the audit is too restrictive.
In addition to financial audits, auditors perform compliance audits in which the auditor
reviews operations in terms of compliance with various laws and regulations regarding
financial operations. Compliance audits have always been a vital part of governmental
audits.
Although audits are required by Iowa law, there are several more fundamental reasons
why a local government should have an independent audit:
• The audit provides a professional opinion of the financial condition of the
government unit.
• Audited financial statements provide reliable financial information to evaluate the
financial health and stability of the governmental unit.
• The auditor should provide recommendations to strengthen and improve the
management and efficiency of the governmental unit.
• The audit will ensure that the local government is in compliance with all
applicable legal provisions.
As I said, the City of Dubuque received an unmodified Auditor's opinion for the Fiscal
Year 2019 financial statements, however, the auditor had several findings and
recommendations for improvement and the City is in concurrence with those
recommendations. The City has obtained hundreds of millions of dollars in federal and
state grants and operational subsidies from multiple different government agencies. It is
my responsibility as City Manager to make sure the internal structures exist to support
all of the grant reporting requirements. In my attempt to be cost conscious, I expected
too much of too few to take on these extra monitoring and tracking duties. Also, the City
had some employee retirements, and with the competitive employment environment
(when unemployment was under 2%), the City lost some employees to other employers.
While the departments competently implemented the grants and managed the programs
and projects achieving the intended goals, in some isolated circumstances, not all of the
governmental requirements for tracking and reporting were met according to the grant
standards.
Corrective action has been taken, new positions have been created and changes made
that will support future compliance. City staff had become aware of some of the issues
before the audit and changes had already been implemented, but some of the issues
were identified through the audit process. Therefore, while corrective action has been
taken this Fiscal Year 2019 audit for the year ended June 30, 2019 was completed deep
enough into the current fiscal year (FY 2020) that some of these comments will also
appear in next year's audit of FY 2020, even though the corrective action has already
been taken.
2
As you will see from the presentation of Finance and Budget Director Jennifer Larson,
we believe we now have the right people in the right positions to meet all of the audit
and grant administration requirements.
Finance and Budget Director Jennifer Larson will make a presentation and then we are
available, along with a representative of the auditing firm Eide Bailey LLP, Partner Brian
Unsen, to answer questions.
I respectfully recommend you receive and file the Fiscal Year 2019 annual audit.
Mic ael C. Van Milligen
MCVM:jh
Attachment
cc: Crenna Brumwell, City Attorney
Teri Goodmann, Assistant City Manager
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
3
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jenny Larson, Director of Finance and Budget
Dubuque
btrEi
AIi AneficaCity
1I I /
�®►
2007.2012.2013
SUBJECT: Submission of Fiscal Year Ended June 30, 2019 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance
DATE: April 20, 2020
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2019 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 or "clean" opinion on the financial
statements.
BACKGROUND
Iowa 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 provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part
200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Award (Uniform Guidance).
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 2019 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.
Finance 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.
JL/cm
Enclosures: Fiscal Year 2019 CAFR
Auditor's Communication with Those Charged with Governance Letter
Auditor's Compliance letter
COMPREHENSIVE ANNUAL
FINANCIAL REPORT
FISCAL YEAR ENDED JUNE 30, 2019
DUBUQUE, IOWA
THE CITY OF
Masterpiece on the Mississippi
11111: I'
2007.2012.2013 `
2017*2019%'•y ; • 4at?gG. .,.�"
•
40.11 1?;:11": •
-. `• ��rt %A. r • it , Y
Comprehensive Annual Financial Report
For The Fiscal Year Ended June 30, 2019
City of Dubuque, Iowa
Prepared by:
Department of Finance
THIS PAGE IS INTENTIONALLY LEFT BLANK
Introductory Section
June 30, 2019
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-11
City Organizational Chart 13
Officials 14
Certificate of Achievement for Excellence in Financial Reporing 15
FINANCIAL SECTION
Independent Auditor's Report 19-21
Management's Discussion and Analysis 23-32
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position 1 34-35
Statement of Activities 2 36
Fund Financial Statements
Balance Sheet — Governmental Funds 3 38-39
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 3-1 41
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds 4 42-43
Reconciliation of the Governmental 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 57-111
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds 114
Note to Required Supplementary Information — Budgetary Reporting 115
Schedule of the City's Proportionate Share of Net Pension Liability — Iowa
Employees' Retirement System 116
Schedule of City's Contribution — Iowa Employees' Retirement System 117
Notes to Required Supplementary Information — Net Pension Liability IPERS 118
Schedule of the City's Proportionate Share of Net Pension Liability — Municipal
Fire and Police Retirement System of Iowa 119
Schedule of City's Contributions — Municipal Fire and Police Retirement System
of Iowa 120
Notes to Required Supplementary Information — Net Pension Liability MFPRSI 121
Schedule of Changed in Total OPEB Liability, Realted Ratios and Notes 122
Supplementary Information
Combining Fund Statements
Combining Balance Sheet — Nonmajor Governmental Funds A-1 126-128
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds A-2 130-132
Combining Statement of Net Position — Nonmajor Enterprise Funds B-1 134
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position — Nonmajor Enterprise Funds B-2 135
1
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
FINANCIAL SECTION (continued) Exhibit Page
Combining Statement of Cash Flows — Nonmajor Enterprise Funds B-3 136-137
Combining Statement of Net Position — Internal Service Funds C-1 140-141
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position (Deficit) — Internal Service Funds C-2 142-143
Combining Statement of Cash Flows — Internal Service Funds C-3 14-145
Combining Statement of Changes in Assets and Liabilities — Agency Funds D-1 148
STATISTICAL SECTION (Unaudited) Table Page
Statistical Section Contents 151
Financial Trends
Net Position by Component 1 152-153
Changes in Net Position 2 154-157
Fund Balances of Governmental Funds 3 158-159
Changes in Fund Balances of Governmental Funds 4 160-161
Revenue Capacity
Taxable and Assessed Value of Property 5 162
Property Tax Rates — Direct and Overlapping Governments 6 163
Principal Property Taxpayers 7 164
Property Tax Levies and Collections 8 165
Debt Capacity
Ratios of Outstanding Debt by Type 9 166-167
Ratios of General Bonded Debt Outstanding 10 168
Direct and Overlapping Governmental Activities Debt 11 169
Legal Debt Margin Information 12 170-171
Revenue Debt Coverage 13 172
Water and Sewer Receipt History 14 173
Water Meters by Rate Class 15 174
Largest Water and Sewer Customers 16 175
Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining 17 176
Demographic and Economic Information
Demographic and Economic Statistics 18 177
Principal Employers 19 179
Operating Information
Full -Time Equivalent City Government Employees by
Function/Department 20 180-181
Operating Indicators by Function/Program 21 182-183
Capital Asset Statistics by Function 22 184-185
Retail 23 186
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 Government Auditing Standards
189-190
Independent Auditor's Report on Compliance with Requirements for Each Majo
Program and on Internal Control Over Compliance Required by The Uniform Guidance 191-193
Schedule of Expenditures of Federal Awards 194-196
Notes to the Schedule of Expenditures of Federal Awards 197
Schedule of Findings and Questioned Costs 198-206
2
Masterpiece on the Mississippi
March 30, 2020
Honorable Mayor, City Council Members, and Citizens of the City of Dubuque:
Dubuque
AII•America City
CIVIC L.U11-
2007.2012.2013
2017*2019
Finance Department
50 West 13th Street
Dubuque, Iowa 52001-4805
Office (563) 589-4133
Fax (563) 690-6689
TTY (563) 690-6678
finance@cityofdubuque.org
www.cityofdubuque.org
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, 2019.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
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
statements are free of any material misstatements. 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 2019. 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,
Uniform Administrative Requirement, Cost Principals, 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; sanitation services; the
construction and maintenance of roads, streets, and infrastructure; inspection and licensing functions;
maintenance of grounds and buildings; regional 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, road salt and public transportation.
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 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
3
organization are transferred to the City. Dubuque Convention and Visitors Bureau'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 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 Dubuque Convention and Visitors Bureau 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 (MD&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, revitalized riverfront and
millwork districts and two casinos, one with a pari-mutuel dog track. The City of Dubuque has a stable,
diversified economic base and is a major tri-state retail center. The City currently has a land area of 31.6
square miles, and a census 2010 population of 57,637. The U.S. Census Bureau's 2018 population estimate
for Dubuque is 57,941. 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 July 2019, the City's unemployment rate was 2.4%, below
the state unemployment rate of 2.5% and the 3.7% 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 government 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 government's departments, 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 workforce and cover five different
industries, which insulates the City against the negative impact from a downturn in any one area of the
economy. Several industry experts and associations have recognized the community's efforts to diversify its
economy.
4
Industrial
Dubuque Industrial Center West (DICW): Over 550 saleable acres were acquired in 1997. The DICW
comprises 36 businesses with two additional businesses scheduled to arrive within the next 18 months. 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. Medline Industries, Inc. announced plans to invest in a new
130,000-square-foot facility in the Dubuque Industrial Center West. The medical supply company will add
more than 100 jobs and invest nearly $20 million in the new customer service facility to be located on
Innovation Drive. This project is scheduled to be completed, with the new building occupied, by the end of
2019. Universal Tank and Fabrication announced in November of 2017 that it plans to expand their
operations. This locally -grown company manufactures high -quality pressure vessels and tanks for
customers across the country. Universal Tank opened in October 2007 starting with 24 employees. Today
this company employs more than 50 with plans to grow.
Dubuque Industrial Center South (DIGS): 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 new
facility has been operational since January 2019. This project came as a welcome development after months
of collaboration by private and public entities.
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.
Commercial and Retail
Downtown Development: Over $780 million has been invested in the downtown area in building
rehabilitation, new construction, and public improvements where more than 9,000 people work. Over 350
IBM employees work on two renovated floors of the nine -story Roshek Building where Heartland Financial
relocated existing staff to the third and fourth floors. RSM US LLC occupies a portion of the second floor.
Cottingham & Butler, headquartered in Dubuque and the nation's 30th largest insurance broker, has
invested over $4.7 million and added over 200 employees to its Dubuque staff bringing their total local
employment to nearly 700.
Historic Millwork District: The Historic Millwork District is saturated with history. It imbues the area with
authenticity and character while offering valuable lessons about the importance of sustainable urban design
strategies. Dubuque's Historic Millwork District is a keystone to the region's aggressive economic
development strategy. With one million square feet of historic warehouse space ideal for urban mixed -use
development, the District is perfectly suited to attract entrepreneurs, designers, residents, institutions, and
businesses prepared to fuel Dubuque's globally competitive and sustainable economy. The District is
currently home to multiple eateries, breweries, and shopping venues. To date, nearly $100 million has been
invested into the transformation of the Millwork District and it is attracting entrepeneurs, residents,
institutions, and businesses that are fueling Dubuque's competitive economy.
Construction of a 54-room Marriot Townplace Suite extended -stay hotel broke ground in June 2017 and
opened in the spring of 2019. The four-story hotel is in the Historic Millwork District and was 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 for the National
5
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 work to restore the building
began. The new owner obtained a demolition permit to deconstruct the unsound section of the structure and
plan to stabilize and make immediate repairs to prevent further deterioration. Although a portion of the
historic structure will be demolished, there are plans to repair, stabilize, and eventually completely restore
the property in the future. This is anticipated to be a $30 million project.
Commercial Development: Fiscal Year 2019 was an exceptional year for commercial development as many
businesses broke ground on new projects in Dubuque. The Plaza 20 retail center was chosen to be the site
of a new VA Clinic that will occupy approximately 22,000 sq,ft. of the former K-Mart building and JoAnn
Fabric is currently remodeling approximately 30,000 square feet of the former K-Mart building. In addition
plans for a new Sonic Drive-Thru have been submitted for the northside of Plaza 20.
Plan review and construction bgan on Phase I of the Mt. Carmel campus for constrction of a new senior
housing development by BVM-PHS Senior Housing, Inc. When all four phases are completed, a total of
450 dwelling units will be available.
Health Services
ENT Medical Building completed construction of a new 9,000 sq. ft. medical facility along Cedar Cross
Road in the summer of 2019.
Mercy Medical Center along with Medical Associates Clinic has begun construction of a $25 million
project to build a two-story building east of the hospital to serve as a hematology/oncology outpatient clinic.
Iowa Health Facilities Council did grant their approval for a certificate of need for a linear acceletor
included in the project.
Education
The Dubuque community takes great pride in the quality of its educational system and it is a top priority for
Dubuque citizens and leaders. Dubuque's public -school system was ranked #7 out of 2,200 school districts
nationwide.
The Dubuque community schools district provides K-12 education through 11 elementary schools, three
junior high schools, one middle school, and three high schools. Dubuque also offers two private school
systems accredited by the State of Iowa. Holy Family Catholic Schools offers K-12 education at four
elementary schools, one K-5 Spanish Immersion Program, a middle school, and a high school. The
Dubuque Lutheran School offers K-5 education at one elementary school.
Dubuque boasts three private, liberal arts colleges offering a wide variety of undergraduate and graduate
degree programs, a community college with a diverse certificate and degree programs, and a Bible college.
The tri-state area features an additional state university and two more community colleges for a total of
18,000 college students. The University of Dubque began the building permit process for a 17,000 square
foot Welcome Center addition and a new 4,000 square foot student clinic
Dubuque Hempstead is amid a 27,000 sq. ft. aquatic facility on the north side of the school.
The City's recent awards and recognition from a variety of sources include:
• The National Civic League named Dubuque a 2019 All -America City. This makes the fifth time in
twelve years Dubuque has received this award which recognizes communities whose citizens work
together to identify and tackle community -wide challenges and achieve uncommon results. Dubuque
6
received the 2019 award for the civic infrastructure built on the Inclusive Dubuqe network of over
60 partners working to advance justice and social equity, and Imagine Dubuque 2017: A Call to
Action, the comphrensive planning process that collected input from 6,000 residents to identify a
roadmap for Dubuque's future. The application and presentation also featured three projects
deonstrating how partners are impacting health outcomes for all residents. "Health Care for All"
highlights the progress Crescent Community Health Center has made, the impact of the Pacific
Islander Health Prject, and the recent work of the Brain Health Task Force. The Bee Branch Creek
Restoration Project was the seond project highlighted and the collaborative work happening by the
Dubuque Easts Well coalition to increase access to healthy local foods is the third.
• In 2018, Dubuque became a LEED-Certified City. As one of the 75 STAR -certified cities and
counties in the U.S., Dubuque was recently named a LEED Certified City. STAR stands for
Sustainability Tools for Assessing and Rating Communities. STAR Communities is a national
framework for measuring and advancing local government's environmental, economic and
community efforts to achieve sustainability. Leadership in Energy and Enviromental Design, or
LEED, for Cities is a program from the U.S. Green Building Council (USGBC) that advances
healthy, green, and economically strong cities and communities.
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 $232 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
more than $160 million in state and federal funds for the project. The $60 million Upper Bee Branch Creek
Restoration phase of the project was completed, and a ribbon -cutting ceremony was held in July 2017 to
celebrate the opening of the Bee Branch Creek Greenway. The $25.9 million Bee Branch Creek Railroad
Culverts Project was awarded in early 2019 and construction is underway. When complete in the summer
of 2021, the improvements will increase the level of flood proectection for over 1,300 homes and businesses
from a 1 in 75- year rain event to a 1 in 500 - year rain event.
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 for 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 infrastructure 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 HUD 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.
7
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
stormwater 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 storm sewer system, and ultimately, the Mississippi River. As of fall 2018, more
than 80 alleys have been completed.
Jule Operations and Training Center: The City of Dubuque's Public Transit Division, completed the Jule
Operations and Training Center (JOTC) in Spring, 2018. The 41,000-square-foot facility replaced the
century -old facility on Central Avenue and provides numerous operating efficiencies. The JOTC was
constructed on a city -owned, Superfund site. The facility includes bus storage, dispatch and administrative
offices, indoor classroom and outdoor vehicle training areas. The $6.8 million project was supplemented
with nearly $5.3 million in state and federal funds.
Southwest Arterial: In 2013, the City of Dubuque and the Dubuque Metropolitan Area Transportation Study
(DMATS) successfully negotiated a Memorandum of Understanding with the Iowa Department of
Transportation (Iowa DOT) for 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
for 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 construction is currently under way between US20 to US61-151. Highway paving
will occur during the 2019 construction season. The Iowa DOT, DMATS, Dubuque County, and the City of
Dubuque have budgeted - $160 million to complete the 4-lane construction of the Southwest Arterial and is
scheduled for completion in the summer of 2020.
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 work 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 opportunities 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 for 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
8
• Financially Responsible, High -Performance City Organization: Sustainable, Equitable, and
Effective Service Delivery
• Sustainable Environment: 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 for 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 determine that the government has
complied with applicable laws, regulations, contracts, and grants.
Budgeting Controls: In addition, the government 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
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 mutual funds. The City (including DMASWA) received
cash basis investment earnings of $1,995,330 for 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 $750,000 for each accident is provided through self-insurance. The accumulated reserve provision for
such claims reflected a $592,470 net position as of June 30, 2019. The City has also established a
self-insurance plan for medical, prescription drug, and short-term disability. The accumulated reserve
provision for such claims equaled $4,793,496 as of June 30, 2019. 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 Investors Service assigned a Aa3 rating to the $2.2M GO Bonds, Series 2019A and
$860,000M Taxable GO Refunding Bonds, Series 2019B and $4.2M GO Refunding Bonds, Series 2019C.
9
Moody's maintained a Aa3 rating on outstanding general obligation unlimited tax (GOULT) debt; a Aa3
rating on outstanding second lien sales tax increment debt that is ultimately backed by an unlimited
property tax pledge; and an A2 rating on outstanding senior lien sales tax increment revenue bonds. The
ratings incorporate the city's growing economy bolstered by the role as a regional economic center for
northeast Iowa; revenue raising flexibility thorugh multiple property tax levies; relatively low resident
income level and and elevated leverage related to debt and pensions.. In September 2019, Moody's also
affirmed the A2 rating on the water revenue debt. The A2 rating incorporates the system's large and
diverse customer base and unlimited rate setting authority and moderate debt burden with limited plans for
future debt issuance. The rating also considers the system's strong debt service coverage and liquidity.
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 firm 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 Reporting to the City of Dubuque, Iowa, for its
Comprehensive Annual Financial Report for the fiscal year ended June 30, 2018. This was the 31st
consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently organized comprehensive
annual financial report. 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.
GFOA also awarded a Distinguished Budget Presentation Award to the City of Dubuque, Iowa, for its
annual budget for the fiscal year ended June 30, 2020. 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 14th 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.
10
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,
Michael C. Van Milligen
Jennifer M. Larson
City Manager Director of Finance and Budget
11
THIS PAGE IS INTENTIONALLY LEFT BLANK
12
Citizens of Dubuque
City Attorney
Library
Management/Legislative
Sustainability
I I
Training &
Workforce
Development
Human
Relations
Recreation
Civic Center
Multicultural
Family Center
Parks I
Grand River
Center
I I
Cable TV
Geographic
Information
Systems
I I
Parking
Elected by the
Citizens of Dubuque
City Council
City Manager
Building
Services
Emergency
Communications
Finance &
Budget
Health Services
Human Rights
Leisure
Service
Planning
Services
Public i
Information
Transportation
Services
Water &
Resource
Recovery Center
Appointed by the
City Council
City Clerk
Economic
Development
Airport
Neighborhood I
Development
Fire
—111
Housing &
Community
Development I
Information
Services
Police
Public Works
Water
Apppointed by the
Library Board of
Trustees
Arts & Cultural.
Affairs II
Ambulance
Services
Emergency
Management
Appointed by the
Airport Commission
Appointed by the
City Manager
13
cnm94-930919
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2019
CITY COUNCIL
Roy D. Buol
Ric W. Jones
David T. Resnick
Brett M. Shaw
Laura J. Roussell
Danny Sprank
Brad M. Cavanagh
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M. Brumwell
Maureen A. Quann
Kevin S. Firnstahl
DEPARTMENT MANAGERS
Todd E. Dalsing
Cori L. Burbach
Therese H. Goodmann
David A. Johnson
Gus N. Psihoyos
Jill M. Connors
Jennifer M. Larson
Jennifer J. Raber
Rick A. Steines
Mary Rose Corrigan
Alexis M. Steger
Kelly R. Larson
Christine A. Kohlmann
Marie L. Ware
Susan A. Henricks
Jerelyn N. O'Connor
Shelley M. Stickfort
Randy W. Gehl
John L. Klostermann
Laura B. Carstens
Mark M. Dalsing
Gina S. Bell
V Renee Tyler
Denise C. Blakeley Ihrig
William J. O'Brien
Mayor
Council Member — At Large
Council Member — At Large
Council Member — 1st Ward
Council Member — 2nd Ward
Council Member — 3rd Ward
Council Member — 4th Ward
City Manager
Senior Counsel
City Attorney
Assistant City Attorney
City Clerk
Airport Manager
Assistant City Manager
Assistant City Manager
Building Services Manager
City Engineer
Economic Development Director
Director of Finance and Budget
Finance Manager
Fire Chief
Health Services Manager
Housing and Community Development Manager
Human Rights Director
Information Services Manager
Leisure Services Manager
Library Director
Neighborhood Development Specialist
Human Resources Manager
Public Information Officer
Public Works Director
Planning Services Manager
Police Chief
Sustainable Community Coodinator
Transportation Services Director
Water Department Manager
Water & Resource Recovery Center Manager
14
Government Finance Officers Association
Certificate f
Achievement
for Excellence
in Financial
Reporting
Pies n ted to
City of Dubuque
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2018
Executive Director/CEO
15
THIS PAGE IS INTENTIONALLY LEFT BLANK
16
Financial Section
June 30, 2019
City of Dubuque, Iowa
17
THIS PAGE IS INTENTIONALLY LEFT BLANK
18
EideBailly®
CPAs & BUSINESS ADVISORS
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 governmental activities, the business -
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa as of and for the year ended June 30, 2019 and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of Dubuque Initiatives and Subsidiaries, which represent 34 percent, 42
percent, and 32 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 Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free 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 Government Auditing
Standards.
What inspires you, inspires us. I eidebailly.com
1545 Associates Dr., Ste. 101 Dubuque, IA 52002-2299 I T 563 556 1790 I F 563.557.7842 EOE
19
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, 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 information of the City of Dubuque, Iowa, as
of June 30, 2019, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and the other required supplementary information listed in the table of contents
be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquires of management about the methods or
preparing the information and comparing the information for consistency with management's 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 information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
20
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Dubuque, Iowa's financial statements. The introductory section,
combining nonmajor 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, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is
also not a required part of the financial statements.
The combining nonmajor 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 information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining nonmajor 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 statistical sections 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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated March 30, 2020,
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 Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
Dubuque, Iowa
March 30, 2020
21
THIS PAGE IS INTENTIONALLY LEFT BLANK
22
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
This section of the City of Dubuque's annual financial report presents our discussion and analysis of the
City's financial performance during the fiscal year that ended on June 30, 2019. Please read it in
conjunction with the transmittal letter at the front of this report 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 $571,955,020 compared to net position of
$546,413,451 for fiscal year 2018.
• Governmental program revenues increased by $3,041,677 from fiscal year 2018. This increase
was due largely in part to a significant increase in grant revenues in public works in relation to
the HUD Resiliency grant.
• The City's business type activities program revenues increased $1,274,743. Charges for services
increased $495,583. Water (3%), sewer (3%), stormwater (6.74%), and refuse (1.72%) rates were
increased in fiscal year 2019. The Stormwater Fund had a $4,400,028 State of Iowa Flood
Mitigation grant (Sales Tax Increment) for the Bee Branch Creek Restoration project. Capital
contributions from outside developers was $1,815,431 for completed subdivisions. Capital
contributions received from governmental funds were $7,130,614 and are shown in the transfers
line and are detailed out in Note 5.
• Program expenses of the City's governmental activites decreased approximately 3.1%, or
$2,895,086 from fiscal year 2018 to fiscal year 2019. The decrease was seen in community and
economic development, which is due to a decrease in expenditures related to the HUD Resiliency
grant and a decrease in loans to developers.
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 government -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 government -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.
23
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The statement of activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will result in cash flows in future fiscal periods such as
uncollected taxes and earned but unused sick and vacation leave.
The government -wide financial statements include not only the City itself (known as the primary
government), but also three other legally separate entities (known as component units), the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives (DI) 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 reported 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 activities. This category consists of services provided by the City that are principally
supported by taxes and intergovernmental revenues. Basic City services such as police, fire, public
works, planning, parks, library, and general administration are governmental activities.
Business -type activities. These activities are supported primarily by user fees. The services provided by
the City in this category include water, sewer, storm 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 information may be useful in evaluating a government's 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 governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near -term financial decisions. Both
the governmental 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.
24
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The City maintains four individual major governmental 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 for the general fund, tax increment financing fund, community development
fund and debt service fund, all of which are considered to be major funds. Data from all other
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of
these nonmaj or 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, storm 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 workers' compensation. The City's internal service funds
predominately benefit the governmental 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 support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City has three
fiduciary funds, an agency fund reporting resources held for the Dubuque Racing Association for
improvements at the greyhound racing facility, an agency fund used for reporting resources from
Mediacom for purchasing equipment relevant to public, educational, and governmental (PEG) access
broadcasting and an agency fund used for reporting resources held for the decomissioning of the prior
Flexsteel site.
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 information 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 schedule of changes in total OPEB liability.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor enterprise funds, internal service funds, and agency funds, are presented
immediately following the required supplementary information.
25
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net position. As noted earlier, net position may serve as a useful indicator of a government's 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,
constitutional 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.
Current and other assets
Capital assets
Total assets
Deferred outflows of resources
Long-term liabilities
Other liabilities
Total liabilities
Deferred inflows of resources
Net position:
Net investment in capital assets
Restricted
Unrestricted
Total net position
CITY OF DUBUQUE'S NET POSITION
Governmental Activities
2019 2018
Business -type Activities Total
2019 2018
2019 2018
$ 106,778,226 $ 98,759,738 $ 40,258,747 $ 41,127,304 $ 147,036,973 $ 139,887,042
420,219,770 417,486,552 351,502,432 341,272,457 771,722,202 758,759,009
526,997,996 516,246,290 391,761,179 382,399,761 918,759,175 898,646,051
12,964,250 13,056,573 1,486,850 1,698,734 14,451,100 14,755,307
119,522,431 122,035,984 184,920,514 191,234,961 304,442,945 313,270,945
15,275,931 13,787,948 12,499,475 10,538,592 27,775,406 24,326,540
134,798,362 135,823,932 197,419,989 201,773,553 332,218,351 337,597,485
28,519,375 29,021,411 517,529 369,011 29,036,904 29,390,422
385,005,220
28,321,603
(36,682 314)
$ 376,644,509
379,040,697
27,269,997
(41,853,174)
$ 364,457,520
179,561,228
3,131,716
12,617,567
$ 195,310,511
168,205,523
3,053,616
10,696,792
$ 181,955,931
564,566,448
31,453,319
(24,064,747)
$ 571,955,020
547,246,220
30,323,613
(31,156,382)
$ 546,413,451
Net position of the governmental activities increased $12,186,989 over fiscal year 2018 balance
of $364,457,520. Governmental activities had $2,704,343 of capital assets donated from
developers and the federal government and a contribution of land from the component unit
Dubuque Metropolitan Area Solid Waste Agency of $183,393. Overall grant revenues increased
by $4,897,402. This was primarily due to the public works grant for the HUD Resiliency grant.
26
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
Net position for the business -type activities increased $13,354,580 over fiscal year 2018 of
$181,955,931. Charges for services increased $495,583. Grants increased $779,160. The increase in net
position is primarily due to transfers of capital assets from governmental funds of $7,130,614.
A portion of the City's net position $31,453,319 or 5.5% represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal year 2019, the City has negative total unrestricted net position. The
government -wide negative unrestricted results from TIF (governmental activities) debt being used to
finance capital assets of the business -type activities, along with $50,051,502 in pension liability and
$6,121,366 in OPEB Liability.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$37,973,888 in 2019. Other governmental revenues included gaming $8,730,986, local option sales taxes
$8,940,109, and charges for services $16,138,161.
Governmental operating expenses during 2019 totaled $94,000,641. The largest programs were public
safety of $29,637,417, public works of $24,835,035, community and economic development of
$15,837,039, and culture and recreation of $12,916,646.
Business -type activities. Operating revenue increased $495,583. Operating expenses increased from
$31,981,878 in 2018 to $34,100,914 in 2019. The increase was primarily in supplies and services
expenses. Nonoperating expenses consist of interest expense of $4,791,204. Investment
earnings increased from $268,283 in 2018 to $798,497 in 2019.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Governmental Activities
Business -type Activities Total
2019 2018 2019 2018 2019 2018
Revenues:
Program revenues
Charges for services $ 16,138,161 $ 17,993,886 $ 34,258,453 $ 33,762,870 $ 50,396,614 $ 51,756,756
Operating grants and contributions 23,198,271 21,569,356 1,917,366 1,648,403 25,115,637 23,217,759
Capital grants and contributions 11,048,200 7,779,713 6,215,459 5,705,262 17,263,659 13,484,975
General revenues
Property taxes 37,973,888 39,632,246 - - 37,973,888 39,632,246
Local option sales tax 8,940,109 8,610,948 - - 8,940,109 8,610,948
Hotel/motel tax 2,113,273 2,286,469 - - 2,113,273 2,286,469
Utility franchise fees 5,072,350 4,832,958 5,072,350 4,832,958
Gaming 8,730,986 8,062,251 - - 8,730,986 8,062,251
Unrestricted investment earnings 1,858,476 688,769 798,497 268,283 2,656,973 957,052
Gain on sale of capital assets 94,980 309,857 80,479 4,680 175,459 314,537
Total revenues 115,168,694 111,766,453 43,270,254 41,389,498 158,438,948 153,155,951
Expenses:
Public safety 29,637,417 29,482,962 - - 29,637,417 29,482,962
Public works 24,835,035 20,393,871 - - 24,835,035 20,393,871
Health and social services 1,442,658 883,217 - - 1,442,658 883,217
Culture and recreation 12,916,646 14,323,710 - - 12,916,646 14,323,710
Community and economic
development 15,837,039 21,109,384 - - 15,837,039 21,109,384
General government 5,944,116 7,573,081 - - 5,944,116 7,573,081
Interest on long-term debt 3,387,730 3,129,502 - - 3,387,730 3,129,502
Sewage disposal works - - 12,177,352 11,614,347 12,177,352 11,614,347
Water utility - - 7,892,423 7,109,421 7,892,423 7,109,421
Stormwaterutility - - 7,025,525 6,159,039 7,025,525 6,159,039
Parking facilities - - 2,850,531 2,866,510 2,850,531 2,866,510
America's River Project 19,874 10,143 19,874 10,143
Refuse collection - - 4,215,881 4,244,551 4,215,881 4,244,551
Transit system - - 4,533,060 4,722,979 4,533,060 4,722,979
Salt - - 182,092 119,421 182,092 119,421
Total expenses 94,000,641 96,895,727 38,896,738 36,846,411 132,897,379 133,742,138
Increase in net position
before 21,168,053 14,870,726 4,373,516 4,543,087 25,541,569 19,413,813
Transfers (8,981,064) (5,423,015) 8,981,064 5,423,015 - -
Increase in net position 12,186,989 9,447,711 13,354,580 9,966,102 25,541,569 19,413,813
Net position, beginning 364,457,520 355,009,809 181,955,931 171,989,829 546,413,451 526,999,638
Net position, ending $ 376,644,509 $ 364,457,520 $ 195,310,511 $ 181,955,931 $ 571,955,020 $ 546,413,451
28
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
Governmental funds. The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements.
The City's governmental funds reported a combined fund balance of $62,912,469 at June 30, 2019.
$5,706,879 is in nonspendable for inventory, receivables, and prepaid items. $69,412 is nonspendable
endowment corpus. $34,597,019 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 $3,009,111 for capital improvements. $1,438,616 is assigned
for capital improvements and equipment. This leaves $18,091,432 for unassigned fund balances in the
government funds.
The General Fund's fund balance reserve goal is 20% of revenues. The fund balance of the General
Fund increased by $4,439,155 to $26,314,568. Gaming revenues increased by $646,451 or 8.0% in fiscal
year 2019. Charges for Services increased $906,681 coupled with increases in taxes and investment
earnings. General Fund expenditures increased from $57,584,098 in 2018 to $59,398,698 in 2019. The
$1,814,600 increase was primarily in the public works function $572,426, but increases were also in the
public safety, culture and recreation, and general government functions.
The fund balance of special revenue fund Tax Increment Financing increased by $49,944 to $9,161,732.
Tax revenues decreased by $2,293,773 due to three subareas of tax increment financing districts retiring
on June 30, 2018, Subarea B of Dubuque Industrial Center West and Subareas A and B of Technology
Park. Tax Increment Financing expenditures decreased $1,526,497.
The fund balance of the special revenue Community Development Fund increased by $1,408,919
to $7,262,493. Intergovernmental revenue increased from $6,376,831 in 2018 to $11,277,705 in
2019 primarily for HUD Resiliency grant.
The Debt Service Fund paid $5,509,605 in principal and $3,032,311 in interest and fiscal charges during
fiscal year 2019.
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, 2019, totaled $195,310,511 of which the
unrestricted is $12,617,567.
The Sewer Fund had an increase of $938,006 for total net position of $29,466,324. Operating expenses
increased $662,267 primarily for repairs and maintenance and supplies and services. The Sewer Fund
operating income from operations was $2,054,077.
The Water Utility had an increase in net position by $2,336,030 for total net position of $31,358,499.
Water rates were increased 3% in 2019.
The Storm Water Utility had an increase in net position of $10,365,000. Ending net position is
$70,062,557. Storm Water Utility had capital contributions of $11,776,579 which consisted of a capital
grant $4,400,028, contribution from developers $245,937 and contribution of assets from governmental
funds $7,130,614.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
The Parking Facilities had a decrease in net position of $2,544. Ending net position is $48,072,205.
Operating income increased $31,374. Parking Facilities had operating income of $417,717 after
depreciation of $1,193,543 for fiscal year 2019.
Other Enterprise Funds net position decreased by $281,912 to $16,350,926. This was primarily due to
Transit's decrease of $431,679 in net position.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2018-2019 cash basis budget. The first amendment was
passed in October 2018 to reflect operating and capital budget carryovers (continuing appropriation
authority) from fiscal year 2019 and amended the fiscal year 2019 budget for operating and capital City
Council actions since the beginning of the fiscal year. The second budget amendment was passed in April
2019 to reflect City Council actions since the second budget amendment and amendments to add
additional appropriation authority due to increased revenues.
The final budget for total cash basis receipts increased by $45,644,681. The increase was primarily
attributable to revenue associated with capital projects and operating carryovers which mainly include
grants to intergovernmental funds. The final budget for total expenditures increased $76,769,264 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.
Actual cash basis revenues were $41,830,848 less than the final amended budget; and, cash basis
expenditures were $91,584,914 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
30
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2019
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, 2019, amounts to $771,722,202 (net of accumulated depreciation). This investment 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.
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in progress
Accumulated depreciation
CAPITAL ASSETS (net of accumulated depreciation)
Govememental Activities
2019 2018
$ 78,777,620
141,858,066
25,455,654
51,673,620
236,909,112
56,019,934
(170,474,236)
$ 420,219,770
Business -type Activities
2019 2018
$ 78,309,999 $
141,320,127
24,045,686
50,688,060
234,204,768
49,954,930
(161,037,018)
$ 417,486,552 $
24,805,263
159,586,137
177,818,388
113,861,028
11,853,774
(136,422,158)
351,502,432
$ 24,399,223
158,539,345
168,060,566
112,329,961
5,819,782
(127,876,420)
Total
2019 2018
$ 103,582,883
301,444,203
203,274,042
165,534,648
236,909,112
67,873,708
(306,896,394)
$ 102,709,222
299,859,472
192,106,252
163,018,021
234,204,768
55,774,712
(288,913,438)
$ 341,272,457 $ 771,722,202 $ 758,759,009
Major expenditures during 2018-2019 were for the construction work on the Salt Building, Skate Park
development, water main projects, the English Mill pump stations, and Bee Branch storm water projects.
Long-term debt. At year end, the City had $257,596,051 of debt outstanding. During fiscal year 2019, the
City issued $3,100,000 of general obligation bonds to provide for the acquisition and construction of
major capital facilities.
Revenue capital loan notes have been issued for the planning and construction of sewer, stormwater, and
water capital projects through the State of Iowa State Revolving Loan Funds (SRF). The City issued an
additional $3,436,611of SRF debt in 2019 including $5,000 for the Bee Branch stormwater construction
project, $30,940 for green alley projects reducing stormwater run off, $233,631 for the Catfish Creek
stabilization project, $408,803 for CIWA purchase, $1,541,796 for Kerper sewer project, $444,163 for
Roosevelt tower, and $772,278 for upper Bee Branch culverts. 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 property in the community
Thus the City's debt capacity is $221,512,756. With $117,222,925 of debt applicable against the capacity,
the City is utilizing 52.92% of this limit. Additional information on the City's long-term 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, 2019
ECONOMIC FACTORS
The City's unemployment rate as of December, 2019 was 2.9%, up from 2.5% in December, 2018. The
national average was 3.5% for December 2019, according to the Bureau of Labor Statistics. State of
Iowa was 2.7% as reported in December, 2019.
The assessed valuation of taxable property, net of exemptions, increased by 2.93% to $2,757,549,000. In
fiscal year 2019, the minimum monthly refuse rate increased from $15.11 to $15.36, sewer and water
rates increased 3%, and the storm water monthly fee increased from $7.27 to $7.76 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 government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to
the Director of Finance and Budget, 50 West 13th Street, Dubuque, Iowa 52001-4864.
32
Basic Financial Statements
Fiscal Year Ended June 30, 2019
City of Dubuque, Iowa
33
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2019
Primary Government Component Units
Dubuque Dubuque
Metropolitan Dubuque Convention
Governmental Business -type Area Solid Initiatives and and Visitors
Activities Activities Total Waste Agency Subsidiaries Bureau
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 48,452,726 $ 25,863,488 $ 74,316,214 $ 5,951,989 $ 1,747,043 $ 69,699
Receivables
Property tax
Delinquent 202,491 - 202,491 -
Succeeding year 25,575,669 - 25,575,669 - - -
Accounts and other 2,297,399 3,456,795 5,754,194 443,729 175,195 17,323
Special assessments 799,386 89,402 888,788 - - -
Accrued interest 214,153 87,342 301,495 79,937
Notes 477,844 - 477,844 - 30,232
Intergovernmental 7,927,108 2,430,661 10,357,769 30,381 - -
Inventories 1,185,302 1,047,667 2,232,969 - 133,347 5,636
Prepaid items 601,164 120,622 721,786 8,682 - -
Total Current Assets 87,733,242 33,095,977 120,829,219 6,514,718 2,085,817 92,658
NONCURRENT ASSETS
Expendable restricted cash and investments 9,385,756 7,162,770 16,548,526 7,434,961 1,240,078 233,865
Nonexpendable restricted cash and investments 69,412 - 69,412 - - -
Notes receivable 9,589,816 - 9,589,816 - 137,030
Capital assets
Land 78,777,621 24,805,263 103,582,884 2,737,804 100,000 -
Buildings 141,858,066 159,586,137 301,444,203 386,779 12,000,000 265,111
Improvements other than buildings 25,455,654 177,818,388 203,274,042 16,901,278 - 27,491
Machinery and equipment 51,673,620 113,861,028 165,534,648 4,112,793 31,735 93,141
Infrastructure 236,909,111 - 236,909,111 - - -
Construction in progress 56,019,935 11,853,774 67,873,709 556,340
Accumulated depreciation (170,474,237) (136,422,158) (306,896,395) (10,346,650) (503,300) (105,318)
Total Noncurrent Assets 439,264,754 358,665,202 797,929,956 21,783,305 13,005,543 514,290
Total Assets 526,997,996 391,761,179 918,759,175 28,298,023 15,091,360 606,948
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 12,769,935 1,445,799 14,215,734 135,496
OPEB related deferred outflows 194,315 41,051 235,366 4,501
Total Deferred Outflows of Resources 12,964,250 1,486,850 14,451,100 139,997
34
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION (continued)
JUNE 30, 2019
EXHIBIT 1 (continued)
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Tax increment financing bonds payable
Accrued compensated absences
Accrued interest payable
Intergovernmental payable
Unearned revenue
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and postclosure care
Tax increment financing bonds payable
Accrued compensated absences
Net pension liability
Total OPEB liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
Succeeding year property tax
Deferred amount on refunding
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for/by:
Bond ordinance development agreement
Debt service
Employee benefits
Community development
Iowa Finance Authority Trust
Capital projects
Franchise agreement
Endowments, expendable
Endowments, nonexpendable
Other
State statute
Landfill closure and post closure care
Minority interest
Unrestricted
Total Net Position
See notes to financial statements.
Primary Government
Component Units
Governmental Business -type
Activities Activities
$ 6,994,399
1,649,241
84,977
85,174
4,968,670
550,000
403,220
241,975
2,499
295,776
$ 2,315,297
298,364
1,030,988
5,153,368
2,946,330
330,000
54,366
370,762
Total
Dubuque
Metropolitan
Area Solid
Waste Agency
$ 9,309,696 $ 237,773 $
1,947,605 29,989
1,115,965 -
5,238,542 -
7,915,000 410,000
330,000 -
550,000 -
457,586 3,857
612,737 20,888 446,113
2,499 89,684
295,776 -
Dubuque
Initiatives and
Subsidiaries
124,500 $
547,300
Dubuque
Convention
and Visitors
Bureau
302,346
68,695
7,769
25,000
49,531
15,275,931 12,499,475 27,775,406 792,191 1,117,913
453,341
3,899,133
90,880
41,949,158
18,816,434
5,173,324
44,539,774
5,053,728
2,121,343 6,020,476 - -
106,502,221 106,593,101 - 3,142,084
36,299,675 78,248,833 8,137,529 -
32,767,700 32,767,700 - -
- 3,547,590
- 18,816,434 -
650,209 5,823,533 229,449
5,511,728 50,051,502 516,544
1,067,638 6,121,366 117,066
18,149
119,522,431 184,920,514 304,442,945 12,548,178 3,142,084
18,149
134,798,362 197,419,989 332,218,351 13,340,369 4,259,997
471,490
2,693,749
25,575,669
249,957
473,891 3,167,640 44,412
25,575,669 -
43,638 293,595 -
28,519,375
517,529 29,036,904 44,412
385,005,220
2,140,740
11,257
45,577
8,969,550
542,224
14,458,202
630,380
108,242
69,412
1,346,019
(36,682,314)
12,617,567
179,561,228 564,566,448 8,282,862 7,939,051
3,131,716 5,272,456
11,257
45,577
8,969,550
542,224
14,458,202
630,380
108,242
69,412
1,346,019
(24,064,747)
162,004
1,243,320
1,217,867
4,147,186
2,892,312
280,425
(144,967)
$ 376,644,509 $ 195,310,511 $ 571,955,020 $ 15,053,239 $ 10,831,363 $ 135,458
35
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
EXHIBIT 2
Functions/Programs Expenses
Primary government
Governmental Activities:
Program Revenues Net (Expense) Revenue and Changes in Net Position
Primary Government Component Units
Dubuque
Operating Capital Grants Metropolitan Dubuque Dubuque
Charges for Grants and and Total Program Governmental Business -type Area Solid Initiatives and Convention and
Services Contributions Contributions Revenues Activities Activities Total Waste Agency Subsidiaries Visitors Bureau
Public safety $ 29,637,417 $ 2,535,504 $ 1,406,325 $ - $ 3,941,829 $ (25,695,588) $ - $ (25,695,588)
Public works 24,835,035 7,327,692 8,694,003 9,379,514 25,401,209 566,174 - 566,174
Health and social services 1,442,658 361,482 4,730 400 366,612 (1,076,046) - (1,076,046)
Culture and recreation 12,916,646 2,459,644 740,326 467 3,200,437 (9,716,209) (9,716,209)
Community and economic development 15,837,039 802,994 12,295,841 1,383,101 14,481,936 (1,355,103) - (1,355,103)
General government 5,944,116 2,650,845 57,046 284,718 2,992,609 (2,951,507) - (2,951,507)
Interest on long-term debt 3,387,730 - - - - (3,387,730) - (3,387,730)
Total govemmental activities 94,000,641 16,138,161 23,198,271 11,048,200 50,384,632 (43,616,009) - (43,616,009)
Business -type activities
Sewage disposal works 12,177,352 12,479,684 - 619,104 13,098,788 921,436 921,436
Water utility 7,892,423 8,959,023 327 950,390 9,909,740 2,017,317 2,017,317
Stormwater utility 7,025,525 4,714,670 37,879 4,645,965 9,398,514 2,372,989 2,372,989
Parking facilities 2,850,531 3,066,118 78,149 - 3,144,267 293,736 293,736
America's River Project 19,874 361 - 361 (19,513) (19,513)
Refuse collection 4,215,881 4,351,428 - 4,351,428 135,547 135,547
Transit system 4,533,060 512,385 1,801,011 2,313,396 (2,219,664) (2,219,664)
Salt 182,092 174,784 - 174,784 (7,308) (7,308)
Total business -type activities 38,896,738 34,258,453 1,917,366 6,215,459 42,391,278 3,494,540 3,494,540
Total primary government $ 132,897,379 $ 50,396,614 $ 25,115,637 $ 17,263,659 $ 92,775,910 $ (43,616,009) $ 3,494,540 $ (40,121,469)
Component units
Dubuque Metropolitan Area Solid Waste
Agency $ 4,670,928 $ 5,800,636 $ - $ 62,803 $ 5,863,439 $ 1,192,511 $ - $
Dubuque Initiatives and Subsidiaries 3,370,868 3,406,503 - 3,406,503 - 35,635
Dubuque Convention and Visitors Bureau 1,349,269 1,297,463 80,250 1,377,713 - 28,444
Total Component Units $ 9,391,065 $ 10,504,602 $ 80,250 $ 62,803 $ 10,647,655 1,192,511 35,635 28,444
See notes to financial statements
General revenues
Property taxes 37,973,888 37,973,888
Local option sales tax 8,940,109 8,940,109
Hotel motel tax 2,113,273 - 2,113,273
Utility franchise fees 5,072,350 - 5,072,350
Gaming 8,730,986 - 8,730,986
Unrestricted investment earnings 1,858,476 798,497 2,656,973 272,564 244,408 365
Gain on disposal of capital assets 94,980 80,479 175,459 378,556 (24,161,156)
Transfers (8,981,064) 8,981,064 - - -
Total general revenues and transfers 55,802,998 9,860,040 65,663,038 651,120 (23,916,748) 365
Change in Net Position 12,186,989 13,354,580 25,541,569 1,843,631 (23,881,113) 28,809
Net position, beginning of year 364,457,520 181,955,931 546,413,451 13,209,608 34,712,476 106,649
Net position, ending of year $ 376,644,509 $ 195,310,511 $ 571,955,020 $ 15,053,239 $ 10,831,363 $ 135,458
36
THIS PAGE IS INTENTIONALLY LEFT BLANK
37
CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2019
EXHIBIT 3
General
Special Revenue
Tax
Increment Community
Financing Development
ASSETS
Cash and pooled cash investments $ 21,180,768 $ 6,356,579 $ 765,358
Receivables
Property tax
Delinquent 145,303 29,277 -
Succeeding year 21,888,257 - -
Accounts and other 1,605,042 175,674 -
Special assessments 23,996 - -
Accrued interest 106,012 50,696 12,568
Notes 4,575,806 289,800 4,260,637
Intergovernmental 1,064,874 - 4,587,500
Inventories 228,414 - 579,319
Prepaid items 565,258 - 15,503
Restricted cash and pooled cash investments 229,995 2,320,109 -
Total Assets $ 51,613,725 $ 9,222,135 $ 10,220,885
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Unearned revenue
Total Liabilities
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax
Special assessments
Grants
Other
Total Deferred Inflows of Resources
$
1,506,410 $
1,497,545
295,776
60,403 $
1,427,298
27,269
3,299,731
60,403 1,454,567
21,888,257 - -
23,996 - -
37,008 - 1,503,825
50,165 - -
21,999,426 - 1,503,825
FUND BALANCES
Nonspendable
Endowment corpus - - -
Inventory 228,414 - -
Long-term notes receivable 4,575,806 - -
Prepaid items 565,258 - 15,503
Restricted
Endowments - - -
Library
Police - - -
Veterans - - -
Debt service - - -
Bond ordinance - 2,140,740 -
Capital improvements 229,995 7,020,992 -
Franchise agreement - - -
Special assessments - - -
Iowa Finance Authority Trust -
Community programs - - 8,432,037
Employee benefits - - -
Committed, capital improvements - - -
Assigned
DRA gaming and distribution 1,438,616 - -
Unassigned 19,276,479 - (1,185,047)
Total Fund Balances 26,314,568 9,161,732 7,262,493
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $ 51,613,725 $ 9,222,135 $ 10,220,885
See notes to financial statements.
38
Debt Service
Other
Governmental
Funds
Total
$ 9,974 $ 12,554,168 $ 40,866,847
1,678 26,233 202,491
264,712 3,422,700 25,575,669
- 288,794 2,069,510
- 775,390 799,386
27 24,973 194,276
- 941,417 10,067,660
- 2,274,734 7,927,108
- 301,495 1,109,228
- 20,403 601,164
6,905,064 9,455,168
$ 276,391 $ 27,535,371 $ 98,868,507
$
- $ 1,915,747 $ 4,909,858
- 96,504 1,621,318
- 2,499 2,499
- - 295,776
2,014,750 6,829,451
264,712 3,422,700 25,575,669
- 740,272 764,268
- 1,174,266 2,715,099
422 20,964 71,551
265,134
5,358,202 29,126,587
- 69,412 69,412
301,495 529,909
- - 4,575,806
- 20,403 601,164
- 108,242 108,242
- 1,160,414 1,160,414
- 7,045 7,045
- 143,442 143,442
11,257 - 11,257
- - 2,140,740
- 13,552,043 20,803,030
- 630,380 630,380
- 35,118 35,118
- 542,224 542,224
- 537,513 8,969,550
- 45,577 45,577
3,009,111 3,009,111
- - 1,438,616
- - 18,091,432
11,257 20,162,419 62,912,469
$ 276,391 $ 27,535,371 $ 98,868,507
39
THIS PAGE IS INTENTIONALLY LEFT BLANK
40
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2019
EXHIBIT 3-1
Total fund balances - governmental funds $ 62,912,469
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets
Accumulated depreciation
$ 590,337,417
(170,251,971)
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
unavailable in the funds. Those revenues consist of:
Property tax 43,394
Special assessments 764,268
Grants and other 2,743,256
Pension and OPEB 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 government funds as follows:
Deferred inflows or resources (2,568,267)
Deferred outflows of resources 12,581,419
Internal 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 internal service funds are included in governmental
activities in the statement of net position.
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 (46,917,828)
Tax increment financing bonds (19,366,434)
Notes payable (176,054)
Loans payable (3,984,110)
Deferred amount on debt refundings (249,957)
Accrued interest (241,975)
Compensated absences (5,576,544)
Net pension liability (43,080,322)
Total OPEB liability (5,053,728)
420,085,446
3,550,918
10,013,152
4,729,476
(124,646,952)
Net position of governmental activities $ 376,644,509
See notes to financial statements.
41
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
EXHIBIT 4
REVENUES
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Contributions
Gaming
Miscellaneous
Total Revenues
General
Special Revenue
Tax
Increment Community
Financing Development
34,820,667 $ 10,304,175 $ -
- - 5,923
1,619,892 - -
1,782,975 - 11,277,705
12,216,232 - 5,869
404,400 -
812,591 517,254 114,900
803,422 175,674 17,105
8,708,702 - -
635,684 16,520 38,176
61,804,565
11,013,623 11,459,678
EXPENDITURES
Current
Public safety 28,801,990 - -
Public works 6,323,084 -
Health and social services 1,036,184 - 10,000
Culture and recreation 12,748,806 - 140,895
Community and economic development 3,979,103 2,662,073 3,374,795
General government 6,010,230 - 1,945
Debt service
Principal - - -
Interest and fiscal charges 98,198 - 91,255
Capital projects 401,103 6,444,902
Total Expenditures 59,398,698 2,662,073 10,063,792
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,405,867 8,351,550 1,395,886
OTHER FINANCING SOURCES (USES)
Issuance of debt - - -
Premium on bonds - - -
Transfers in 4,911,818 617,479 30,000
Transfers out (2,939,034) (8,919,085) (16,967)
Insurance recovery 8,503 -
Sale of capital assets 52,001 -
Total Other Financing Sources (Uses) 2,033,288 (8,301,606) 13,033
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
See notes to financial statements.
4,439,155 49,944 1,408,919
21,875,413 9,111,788 5,853,574
$ 26,314,568 $ 9,161,732 $ 7,262,493
42
Debt Service
Other
Governmental
Funds
Total
$
295,092 $ 8,681,967 $ 54,101,901
- 107,255 113,178
1,619,892
- 18,299,015 31,359,695
- 253,935 12,476,036
- - 404,400
763 256,338 1,701,846
- 347,715 1,343,916
- - 8,708,702
- 836,424 1,526,804
295,855
28,782,649 113,356,370
5,930 28,807,920
6,528,309 12,851,393
- 1,046,184
147,347 13,037,048
5,714,220 15,730,191
558,919 6,571,094
5,509,605 - 5,509,605
3,032,311 99,147 3,320,911
- 13,299,049 20,145,054
8,541,916
26,3 52,921 107,019,400
(8,246,061)
2,429,728 6,336,970
- 2,883,875 2,883,875
- 81,693 81,693
8,008,195 3,458,460 17,025,952
(11,995) (6,989,321) (18,876,402)
- 79,340 87,843
- 44,034 96,035
7,996,200
(249,861)
261,118
(441,919) 1,298,996
1,987,809
18,174,610
7,635,966
55,276,503
$ 11,257 $ 20,162,419 $ 62,912,469
43
THIS PAGE IS INTENTIONALLY LEFT BLANK
44
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2019
EXHIBIT 4-1
Net change in fund balances - total governmental funds
Amounts reported for governmental activities in the statement of activities are different because:
Capital outlays are 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 are:
Capital assets expended in governmental funds $ 17,156,396
Transfers of capital assets to enterprise funds (7,130,614)
Contributions from developers and federal government 2,704,343
Contribution of land from Dubuque Metropolitan Area Solid Waste Agency 183,393
Depreciation expense (10,150,009)
In the statement of activities, only the gain or loss on the sale of capital assets is reported,
whereas in the governmental funds, the entire proceeds from the sale increase financial
resources. Thus, the change in net position differs from the change in fund balances by the
book value of the asset being disposed.
Because some revenues will not be collected for several months after the City's
fiscal year ends, they are not considered "available" revenues and are deferred
in the governmental funds. Deferred inflows of resources increased (decreased)
by these amounts this year:
Property tax (2,281)
Special assessments 65,678
Grants and other (1,473,263)
Debt proceeds provide current financial 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 governmental funds,
but it reduces long-term liabilities in the statement of net position and does not
affect the statement of activities. Also, governmental funds report the effect of
issuance discounts and premiums when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities.
Debt issuances including premium (2,965,566)
Debt repayments 5,509,605
$ 7,635,966
2,763,509
(6,110)
(1,409,866)
2,544,039
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds. These items consist of:
Decrease in accrued interest 7,936
Amortization of bond discount/premium 36,177
Increase in compensated absences (70,884)
Deferred amount on debt refundings 22,608
Pension adjustment (720,451)
OPEB adjustment (70,631)
Total additional expenses (795,245)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The change in net position of the internal service funds is
reported with governmental activities. 1,454,696
Change in net position of governmental activities $ 12,186,989
See notes to financial statements.
45
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 5,018,754 $ 7,271,730 $ 10,802,141
Receivables
Accounts 1,464,655 1,030,700 520,820
Accrued interest 48,007 10,379 26,652
Intergovernmental 1,254,074
Prepaid items 17,097 185 81,814
Inventories 316,038 731,629
Total Current Assets
6,864,551 9,044,623 12,685,501
NONCURRENT ASSETS
Restricted cash and pooled cash investments 359,650 2,028,595 4,289,479
Capital assets
Land 254,858 209,244 21,393,569
Buildings 72,269,461 11,212,597
Improvements to other than buildings 50,281,764 2,007,510 120,240,066
Machinery and equipment 39,590,547 60,734,420 1,132,413
Construction in progress 3,422,663 4,077,146 4,353,965
Accumulated depreciation (63,412,924) (28,514,497) (17,290,328)
Net Capital Assets 102,406,369 49,726,420 129,829,685
Total Noncurrent Assets 102,766,019 51,755,015 134,119,164
Total Assets 109,630,570 60,799,638 146,804,665
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
OPEB related deferred outflows
351,157
315,244 90,911
9,002 10,353 4,141
Total Deferred Outflows of Resources 360,159 325,597 95,052
46
EXHIBIT 5
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds
Total
Governmental
Activities -
Internal Service
Funds
$ 1,069,243 $ 1,701,620 $ 25,863,488 $ 7,585,879
129,673 400,349 3,546,197 227,889
2,304 - 87,342 19,877
- 1,176,587 2,430,661 -
9,357 12,169 120,622 -
- 1,047,667 76,074
1,210,577 3,290,725 33,095,977 7,909,719
485,046 7,162,770
2,911,592 36,000 24,805,263
62,337,568 13,766,511 159,586,137
3,806,644 1,482,404 177,818,388 -
2,790,731 9,612,917 113,861,028 356,590
11,853,774
(18,480,437) (8,723,972) (136,422,158) (222,266)
53,366,098 16,173,860 351,502,432 134,324
53,851,144 16,173,860 358,665,202 134,324
55,061,721 19,464,585 391,761,179 8,044,043
93,607
594,880 1,445,799
1,936 15,619 41,051
382,831
95,543 610,499 1,486,850 382,831
47
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2019
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable - current
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Accrued interest payable
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Net pension liability
Total OPEB liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
Deferred amount on refunding
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted by bond ordinance/development agreement
Unrestricted
Total Net Position
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water
Utility
Stormwater
Utility
$ 1,157,304 $ 575,427 $ 468,219
65,367 69,240 18,912
- 1,000,000 -
609,717 697,587 975,221
330,000
2,822,000 728,368 1,603,000
13,475 27,043 -
137,457 67,776 145,756
4,805,320 3,495,441 3,211,108
9,853,254
64,019,796
146,901
1,338,701
234,131
75,592,783
2,000,000
11,626,532
4,180,683
6,649,556
227,569
1,201,795
269,251
26,155,386
8,692,583
28,587,017
35,832,869
9,662
346,570
107,700
73,576,401
80,398,103
115,099
11,203
126,302
29,650,827
103,328
12,581
115,909
76,787,509
29,797
19,854
49,651
33,899,824
(4,433,500)
$ 29,466,324
24,052,026
566,670
6,739,803
59,012,862
2,080,000
8,969,695
$ 31,358,499 $
70,062,557
48
EXHIBIT 5
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds
Total
Governmental
Activities -
Internal Service
Funds
$ 27,731 $ 86,616 $ 2,315,297 $ 2,084,541
19,974 124,871 298,364 27,923
30,988 - 1,030,988 -
649,337 14,468 2,946,330 -
- 330,000 -
- 5,153,368 -
8,009 5,839 54,366 -
16,922 2,851 370,762 -
752,961 234,645 12,499,475 2,112,464
121,343 - 2,121,343
5,760,110 367,196 36,299,675
- 32,767,700
- 106,502,221
12,780 253,297 650,209 -
356,845 2,267,817 5,511,728 1,459,452
50,338 406,218 1,067,638 -
6,301,416 3,294,528 184,920,514 1,459,452
7,054,377 3,529,173 197,419,989 3,571,916
30,682 194,985 473,891 125,482
43,638 -
30,682 194,985 517,529 125,482
46,804,320 15,792,196 179,561,228 134,324
485,046 3,131,716
782,839 558,730 12,617,567 4,595,152
$ 48,072,205 $ 16,350,926 $ 195,310,511 $ 4,729,476
49
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
OPERATING REVENUES
Charges for sales and services $ 12,316,439 $
Other 163,245
Total Operating Revenues 12,479,684
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain (loss) on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
See notes to financial statements.
3,849,978
719,616
713,107
1,637,395
93,142
3,412,369
10,425,607
Water
Utility
8,894,841 $
64,182
8,959,023
2,614,288
728,946
226,070
2,080,976
76,090
1,313,288
7,039,658
Stormwater
Utility
4,663,762
50,908
4,714,670
1,232,784
42,185
59,745
1,858,268
35,640
1,812,775
5,041,397
2,054,077
1,919,365
(326,727)
187,533
(1,751,745)
8,872
327
201,464
(852,765)
1,607
8,193
347,136
29,686
(1,984,128)
(1,555,340)
498,737
619,104
(179,835)
(649,367) (1,599,113)
1,269,998
950,390
258,526
(142,884)
(1,925,840)
11,776,579
514,261
938,006
28,528,318
$ 29,466,324
2,336,030
29,022,469
10,365,000
59,697,557
$ 31,358,499 $
70,062,557
50
EXHIBIT 6
Business -type Activities -Enterprise Funds
Parking
Facilities
Other
Enterprise
Funds
$ 2,888,869 $
177,249
Total
4,974,928 $
64,030
Governmental
Activities -
Internal
Service Funds
33,738,839 $ 15,747,917
519,614 68,524
3,066,118
779,678
298,736
217,589
66,810
92,045
1,193,543
2,648,401
5,038,958 34,258,453
5,011,451 13,488,179
93,143 1,882,626
964,884 2,181,395
1,626,250 7,269,699
67,074 363,991
1,183,049 8,915,024
8,945,851 34,100,914
15,816,441
2,302,140
33,280
96,731
11,975,253
75,418
40,781
14,523,603
417,717
(3,906,893) 157,539
1,292,838
41,197
78,149
(197,510)
(4,620)
1,716,731
21,167
84,280
(5,056)
70,000
1,725,251
798,497
192,115
(4,791,204)
75,859
173
156,630
5,055
(82,784)
334,933
280,000
(617,477)
1,887,122
(2,019,771)
1,737,880
(21)
(1,999,482)
(1,841,943)
13,346,073
2,790,667
(940,217)
161,858
1,454,696
(2,544)
48,074,749
$ 48,072,205
(281,912) 13,354,580
1,454,696
16,632,838 181,955,931 3,274,780
$ 16,350,926 $
195,310,511
$ 4,729,476
51
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 12,343,792 $ 8,907,490 $ 4,647,375 $ 2,861,056
Cash payments to suppliers for goods and services (2,215,306) (3,079,776) (1,794,564) (651,965)
Cash payments to employees for services (3,778,571) (2,679,374) (1,189,837) (785,320)
Other operating receipts 163,245 64,182 50,908 177,249
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 6,513,160 3,212,522 1,713,882 1,601,020
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds 258,526 514,261 280,000
Transfers to other funds (179,835) (142,884) (617,477)
Payment of interfund balances
Contributions 29,686 78,149
Intergovernmental grant proceeds NET CASH PROVIDED BY (USED FOR)
NONCAPITAL FINANCING ACTIVITIES (179,835) 115,642 543,947 (259,328)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 45,823 1,607 230
Acquisition and construction of capital assets (3,537,606) (1,737,955) (4,022,064) (449,067)
Proceeds from issuance of debt 1,572,736 852,966 1,010,910
Premium on debt issuance -
Payment of debt (3,473,317) (2,192,687) (2,426,254) (686,949)
Interest paid (1,763,432) (870,936) (2,083,292) (214,122)
Intergovernmental grant proceeds 327 4,162,281
NET CASH (USED FOR) CAPITAL
AND RELATED FINANCING ACTIVITIES (7,155,796) (3,946,678) (3,358,419) (1,349,908)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 153,012 219,124 358,057
NET INCREASE (DECREASE) IN CASH AND
POOLED INVESTMENTS
CASH AND CASH EQUIVALENTS, BEGINNING
42,283
(669,459) (399,390) (742,533) 34,067
6,047,863 9,699,715
15,834,153 1,520,222
CASH AND CASH EQUIVALENTS, ENDING $ 5,378,404 $ 9,300,325 $ 15,091,620 $ 1,554,289
52
EXHIBIT 7
Business -type Activities -Enterprise Funds
Other
Enterprise
Funds
Total
Governmental
Activities -
Internal
Service Funds
$ 4,981,978 $ 33,741,691 $ 15,682,764
(2,759,855) (10,501,466) (11,650,145)
(5,079,800) (13,512,902) (2,403,186)
64,030 519,614 68,524
(2,793,647) 10,246,937 1,697,957
1,737,880 2,790,667
(21) (940,217)
84,280 192,115
1,645,638 1,645,638
3,467,777
(27,798)
3,688,203 (27,798)
70,000 117,660
(494,063) (10,240,755)
216,125 3,652,737
6,112 6,112
(14,426) (8,793,633)
(4,850) (4,936,632)
4,162,608
(221,102)
23,216
5,055
(16,600)
173
(16,031,903) (11,372)
795,692 148,888
476,244 (1,301,071) 1,807,675
1,225,376 34,327,329 5,778,204
$ 1,701,620 $ 33,026,258 $ 7,585,879
(Continued)
53
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2019
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 2,054,077 $ 1,919,365 $ (326,727) $ 417,717
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 3,412,369 1,313,288 1,812,775 1,193,543
Change in assets and liabilities
(Increase) decrease in receivables 27,353 12,649 (16,387) (27,813)
(Increase) decrease in inventories and prepaid items (109,728) 1,601 (23,706) 17,096
Increase (decrease) in accounts payable 1,057,682 30,705 224,980 6,119
Increase (decrease) in accrued liabilities (5,006) 3,406 (2,793) (1,414)
Increase (decrease) net pension liability 57,846 (126,489) (17,087) 32,499
(Increase) decrease in deferred outflows 10,440 59,152 11,188 (1,974)
Increase in deferred inflows 44,873 30,502 9,859 12,897
Increase (decrease) in net OPEB liability (36,746) (31,657) 41,780 (47,650)
Total Adjustments 4,459,083 1,293,157 2,040,609 1,183,303
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 6,513,160 $ 3,212,522 $ 1,713,882 $ 1,601,020
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources
$ 619,104 $ 950,390 $ 245,937 $
Contributions of capital assets from Governmental Activities $
See notes to financial statements.
$ $ 7,130,614 $
54
EXHIBIT 7
(continued)
Business -type Activities -Enterprise Funds
Other
Enterprise
Funds
Total
Governmental
Activities-
lnternal
Service Funds
$ (3,906,893) $ 157,539 $ 1,292,838
1,183,049 8,915,024
40,781
7,050 2,852 (65,153)
(791) (115,528) 6,522
(7,713) 1,311,773 524,015
(9,176) (14,983) (911)
(308,281) (361,512) (230,496)
133,078 211,884 97,535
53,743 151,874 32,826
62,287 (11,986) -
1,113,246 10,089,398 405,119
$ (2,793,647) $ 10,246,939 $ 1,697,957
- $ 1,815,431 $ -
$ - $ 7,130,614 $ -
55
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2019
EXHIBIT 8
Agency
Funds
ASSETS
Cash and pooled cash investments $ 2,725,992
Accounts receivable 50,729
Prepaids 12,054
Accrued interest 2,820
Notes receivable 1,700,000
Total Assets $ 4,491,595
LIABILITIES
Due to other agency $ 4,491,595
Total Liabilities $ 4,491,595
See notes to financial statements.
56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 report. The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand, Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long -Term 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. Subsequent Events
15. Prospective Accounting Pronouncements
16. Tax Abatements
57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY 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 reported 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 for the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible for 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, 2019, $553,509 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 2008, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for 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 property of the Organization shall be distributed to the City of Dubuque, Iowa
after paying or making provision for 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 governmental 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 for the Component Units may be obtained from the City of Dubuque's
Finance Department for 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.
58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY 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 E-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 government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for 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
segment are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. 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 segment and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
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.
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 reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For 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).
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY 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
judgments, 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 government, except those required to be accounted for in another fund.
The Tax Increment Financing Fund is used to account for the receipt of property taxes, for the
payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long-term debt service.
The Community Development Fund is used to account for the use of Community Development
Block Grant funds as received from federal and state governmental agencies.
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 government 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 for the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City's water facilities and
services.
The Stormwater Utility Fund is used to account for the operations of the City's stormwater
services.
The Parking Facilities Fund is used to account for 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 worker'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 funds, 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 reports Agency Funds to
account for assets held by the City as an agent under the cable franchise agreement, for the Dubuque
Racing Association, and for the decommissioning of the prior Flexsteel site. 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
As a general rule the effect of interfund activity has been eliminated from the government -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-term investments with original maturities of three months or less from the
date of acquisition.
The cash balances of most City funds are pooled and invested. Interest earned on investments is recorded
in the General Fund unless otherwise provided by law. Investments are stated at fair value except for the
investment in the Iowa Public Agency Investment Trust and non-negotiable certificates of deposit which
are valued at amortized cost.
For purposes of the Statement of Cash Flows, all short-term cash investments 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 interfund loans) or
"advances to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governmental 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, 2019
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund
balance account in applicable governmental funds to indicate that they 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, 2019, and 2019 unpaid taxes. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year for 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 for 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 reported as a deferred inflow of resources 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.
Special asssessment receivable represents the amounts due from individuals for work done which benefits
their property. These assessments are payable by invidviduals in not less than ten nor more than twenty
annual installments. Each annual installment with interest on the unpaid balance is due on September 30
and is subject to the same interest and penalties as the other tax.
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 governmental fund 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 cost 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.
62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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, or 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 statute for certain specified uses.
Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure 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 for 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 prior 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
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Deferred Outflows of Resources
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 and OPEB expense and
contributions from the employer after the measurement date but before the end of the employer's
reporting 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
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-term 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, governmental 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 issuance's are reported as other financing sources while
discounts on debt issuance's are reported 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 measuring the net pension liability, deferred outflows of resources, and deferred inflows
of resources related to pensions, and pension expense, information 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 reported by the Systems'. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. For the governmental activities, the net pension liability is
generally liquidated by the General Fund, Community Development Fund, and Seciton VIII Housing
Fund.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Total OPEB Liability
For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB and
OPEB expense, information has been determined based on the City's actuary report. For this purpose,
benefit payments are recognized when due and payable in accordance with the benefit terms. For the
governmental activities, the total OPEB liability is generally liquidated by the General Fund, Community
Development Fund, and Section VIII Housing Fund.
Deferred Inflows of Resources
Deferred inflows of resources represents an acquisition of net position that applies to a future 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, but the 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.
Net Position/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 statute. 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.
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 investment in capital assets
excludes unspent debt proceeds. Unspent debt proceeds were $5,878,778 for the governmental
activities and $6,111,055 for business -type activities.
• Restricted: This consists of net position that is legally restricted by outside parties or by law
through constitutional provisions or enabling legislation. Net position restricted through enabling
legislation as of June 30, 2019 consists of $11,257 for debt service and $45,577 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
investment in capital assets.
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 or they are legally or contractually 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 determined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year-end. Those committed amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by resolution.
• 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, and Director of Finance and Budget.
• Unassigned: Unassigned fund balances are amounts not included in the other spendable
classifications. Positive unassigned fund balance amount is only appropriate in the general fund.
However in governmental funds, other than the general fund, if expenditures incurred for specific
purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may
be necessary to report a negative unassigned fund balance in that fund.
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 governmental
fund financial statements a flow assumption must be made about the order in which the resources are
considered to be applied. It is the government'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 for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
The budget guideline of the City of Dubuque maintains a General Fund working balance or operating
reserve of 20% of the total General Fund operating revenue 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 portion of the revenue sources are beyond the City's
control and therefore uncertain.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 2 — DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2019:
Internal Service Funds:
General Service
$ 757,419
The General Service deficit will be addressed during next fiscal year's reallocation of expenses.
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 $15,581 for the City and $1,200 for the
Dubuque Metropolitan Area Solid Waste Agency.
Deposits. At year-end, the City's carrying amount of deposits was $63,317,613, and the bank balance was
$63,989,227. The City's deposits in banks at June 30, 2019, 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 for the Dubuque Metropolitan Area Solid Waste Agency was
$13,385,750, and the bank balance was $13,466,750. The Agency's deposits in banks at June 30, 2019,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
68
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Investments. As of June 30, 2019, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Type
Investment Maturities (In Years)
Less Than 1 1 to 5
6 to 10 More than 10 Total
Money Market Funds-
U.S. Treasury $ 1,654,590 $ $ - $ - $ 1,654,590
U.S. Treasury Securities 497,970 1,792,373 - 2,777,261 5,067,604
Federal Agency Obligations 7,094,931 12,163,818 40,875 3,965,025 23,264,649
Managed Accounts L/T CD 242,070 242,070
Corporate Stock 98,037 98,037
$ 9,587,598 $ 13,956,191 $ 40,875 $ 6,742,286 $ 30,326,950
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 instrumentality's; certificates of
deposit or other evidences of deposit at federally insured depository institutions 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 investment 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 Permanent 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, except for U.S. Treasury Securities, Federal Agency Obligations, and
Managed Accounts L/T CD which were valued by the custodians of the securities using pricing models
based on credit quality, time to maturity, stated interest rates, and market -rate assumptions (Level 2
inputs), were determined using the last reported sales price at current exchange rates. (Level 1 inputs)
Interest Rate 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 investment 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 investments. 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 investments during the year.
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 returned 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 investment, 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 investments,
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 investments 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 a money market account valued at $1,477,100
as of June 30, 2019.
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 15,581
Carrying amount of deposits 63,317,613
Carrying amount of investments 30,326,950
Total $ 93,660,144
Government -wide
Cash and pooled cash investments $ 74,316,214
Cash and pooled cash investments - temporarily restricted 16,548,526
Cash and pooled cash investments - permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 2,725,992
Total $ 93,660,144
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
Carrying amount of deposits 13,385,750
Total $ 13,386,950
Cash and pooled cash investments $ 5,951,989
Cash and pooled cash investments - temporarily restricted 7,434,961
Total $ 13,386,950
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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, 2018) follows:
Deposits $ 1,747,043
Beneficial interest in assets held by others 1,240,078
Total $ 2,987,121
Cash and pooled cash investments $ 1,747,043
Cash and pooled cash investments -temporarily restricted 1,240,078
Total $ 2,987,121
A reconciliation of cash and investments as shown on the government -wide statement of net position for the
Dubuque Convention and Visitors Bureau (June 30, 2019) follows:
Deposits
Total
$ 303,564
$ 303,564
Cash and pooled cash investments $ 69,699
Cash and pooled cash investments -temporarily restricted 233,865
Total $ 303,564
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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, 2019 the City had the following notes receivable.
Downtown Rehabilitation
Harry & Rosey's
Clark Wolff
Dubuque Museum of Art
Gronen Adaptive
HJD Landlord LLC
Interstate Building LLP
Lower Main Development,
LLC
Original Interest
Balance Rate
Loan Program
Urban Development
Action Grant
40 Main, LLC - Note A
Downtown Housing Incentive
Caradco Landlord, LLC
40 Main Real Estate Loan
Sales Tax Construction
DB&T Community
Development Corporation
$ 300,000
150,000
300,000
3 %
3
3
300,000 2
466,000
300,000
300,000
300,000
Loan
4,500,000
156,583
1,700,000
Current
Issued Maturity Balance Portion
2011 7/1/2031 $ 245,270 $ 17,241
2001 5/1/2022 27,845 9,274
1999 7/1/2021 84,937 44,578
2006 5/1/2036 157,272 8,043
3 2016 4/1/2036 466,000
3 2010 9/22/2015 237,130 17,993
3 2006 3/1/2026 108,980 13,489
2009 6/30/2036 255,000 15,000
3 2012 6/1/2030 3,334,111 35,239
2009 8/1/2022 156,583
2012 2/1/2032 1,700,000
$ 6,773,128
$ 160,857
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 4 — NOTES RECEIVABLE (continued)
Interest
Rate
Community Development Installment Loans Receivables
Residential Rehabilitation Installment Loan Programs
First Time Home Buyers
Local Housing Assistance Program (LHAP)
Homebuyers Assistance Program
Infill
RRP Reserve
Washington Neighborhood Revitalize
The Accessibility Rehabilitation Program (for rentals)
Iowa Finance Authority
HOME Program (1)
Historic Preservation Revolving Loan Fund/Historic
Preservation Housing Forgivable Loan Program
MicroLending
TIF Receivables
Roasting Solutions
(1) Principal payments deferred if one tenant is low income
Balance
6 %$ 273,428
6 30,814
6 1,389,469
6 224,079
195,342
42,630
6 271,748
283,898
157,021
Current
Portion
$ 49,000
12,000
114,000
4,000
28,000
13,000
15,000
16,987
51,000
6 39,813 7,000
96,490 7,000
289,800 -
$ 3,294,532 $ 316,987
At December 31, 2018, Dubuque Initiatives and Subsidiaries had the following notes receivable:
City of Dubuque, 5.00%, unsecured, matures July 2023
Less: current maturities
Noncurrent portion
$ 167,262
(30,232)
$ 137,030
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund transfers for the year ended June 30, 2019, consisted of the following:
Transfers From
Tax Sewer Non
Increment Community Debt Nonmajor Disposal Water Parking Major
Transfer to General Financing Development Services Governmental Works Utility Facilities Enterprise Total
General $ - $ 430,641 $ - $ - $ 4,195,409 $ 142,884 $ 142,884 $ - $ - $ 4,911,818
Tax increment
financing 2 - - - 617,477 - 617,479
Community
development 30,000 - - - - - 30,000
Debt service 608,734 6,347,085 1,052,376 - - - - 8,008,195
Nonmajor
Governmental 345,425 1,580,288 1,532,726 - - - 21 3,458,460
Water utility - 251,069 7,457 - - - - 258,526
Stormwater utility 258,990 - 16,967 201,353 36,951 - - - 514,261
Parking facilities - 280,000 - - - - 280,000
Nonmajor enterprise 1,725,885 - 11,995 1,737,880
$ 2,939,034 $ 8,919,085 $ 16,967 $ 11,995 $ 6,989,321 $ 179,835 $ 142,884 $ 617,477 $ 21 $ 19,816,619
Net capital assets of $7,130,614 were transferred from governmental capital assets to Storm Water Utility. The transfer was reported as a capital
contribution in the Storm Water Utility Fund. No amounts were reported 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 statute 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.
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2019, was as follows:
Primary Government:
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction in Progress
Total Capital assets, not
being depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
$ 78,309,999 $
49,954,930
128,264,929
Capital assets, being
depreciated:
Buildings 141,320,127
Improvements other
than buildings 24,045,686
Machinery and equipment 50,688,060
Infrastructure 234,204,768
Total capital assets, being
depreciated 450,258,641
$
$ 467,622 $ - $ 78,777,621
- 8,478,171 (2,413,166) 56,019,935
8,945,793 (2,413,166) 134,797,556
537,939 - 141,858,066
1,409,968 - 25,455,654
1,745,241 (759,681) 51,673,620
2,704,343 - 236,909,111
6,397,491 (759,681) 455,896,451
Less accumulated
depreciation for:
Buildings (43,428,233) - (2,435,652) - (45,863,885)
Improvements other
than buildings (11,650,829) - (823,388) - (12,474,217)
Machinery and Equipment (27,347,712) - (3,264,813) 753,571 (29,858,954)
Infrastructure (78,610,244) - (3,666,937) - (82,277,181)
Total accumulated
depreciation (161,037,018) - (10,190,790) 753,571 (170,474,237)
Total capital assets, being
depreciated, net 289,221,623
(3,793,299) (6,110) 285,422,214
Governmental activities
capital assets, net $ 417,486,552 $ $ $ 5,152,494 $ (2,419,276) $ 420,219,770
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 — CAPITAL ASSETS (continued)
Business -type activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
$ 24,399,223 $
5,819,782
30,219,005
- $ 406,040 $ - $ 24,805,263
16,283,821 (10,249,829) 11,853,774
- 16,689,861 (10,249,829) 36,659,037
Capital assets, being
depreciated:
Buildings 158,539,345 - 1,046,792 - 159,586,137
Improvements other
than buildings 168,060,566 - 9,757,822 - 177,818,388
Machinery and equipment 112,329,961 - 1,905,204 (374,137) 113,861,028
Total capital assets, being
depreciated 438,929,872 - 12,709,818 (374,137) 451,265,553
Less accumulated
depreciation for:
Buildings (53,250,239) - (2,116,386) - (55,366,625)
Improvements other
than buildings (33,599,020) - (2,976,189) - (36,575,209)
Machinery and equipment (41,027,161) - (3,822,449) 369,286 (44,480,324)
Total accumulated
depreciation (127,876,420) - (8,915,024) 369,286 (136,422,158)
Total capital assets, being
depreciated, net 311,053,452
- - 3,794,794 (4,851) 314,843,395
Business -type activities
capital assets, net $ 341,272,457 $ - $ - $ 20,484,655 $ (10,254,680) $ 351,502,432
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 — CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety $ 958,946
Public works 6,053,671
Health and social services 5,496
Culture and recreation 2,220,911
Community and economic development 68,878
General government 842,107
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 40,781
Total depreciation expense - governmental activities $ 10,190,790
Business -type activities:
Sewage disposal works $ 3,412,369
Water utility 1,313,288
Stormwater utility 1,812,775
Parking facilities 1,193,543
Refuse collection 273,008
Salt 27,639
Transit system 882,402
Total depreciation expense - business -type activities $ 8,915,024
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 — CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency (Component Unit):
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
$ 2,952,666 $
3,629,793
6,582,459
$ - $ - $ (214,862) $ 2,737,804
338,235 (3,411,688) 556,340
338,235 (3,626,550) 3,294,144
Capital assets, being
depreciated:
Buildings 207,715 - 179,064 - 386,779
Improvements other
than buildings 13,668,654 - 3,232,624 - 16,901,278
Machinery and equipment 4,048,113 - 64,680 - 4,112,793
Total capital assets, being
depreciated 17,924,482 - - 3,476,368 - 21,400,850
Less accumulated
depreciation for:
Buildings (61,379) - (12,745) - (74,124)
Improvements other
than buildings (7,134,672) - (333,088) - (7,467,760)
Machinery and equipment (2,560,108) - (244,658) - (2,804,766)
Total accumulated
depreciation (9,756,159) - (590,491) - (10,346,650)
Total capital assets, being
depreciated, net
8,168,323
2,885,877 11,054,200
Dubuque Metropolitan Area
Solid Waste, capital assets $ 14,750,782 $ - $ - $ 3,224,112 $ (3,626,550) $ 14,348,344
Depreciation expense of $590,491 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 6 — CAPITAL ASSETS (continued)
Dubuque Initiatives (Component Unit):
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being
depreciated:
Land $ 117,723 $ - $ (17,723) $ 100,000
Construction in Progress 121,193 (121,193) -
Total Capital assets, not
being depreciated 238,916 - (138,916) 100,000
Capital assets, being
depreciated:
Buildings & Land
Improvements 45,676,454 335,546 (34,012,000) 12,000,000
Other Property 31,735 - 31,735
Total capital assets, being
depreciated 45,708,189 335,546 (34,012,000) 12,031,735
Less accumulated
depreciation for:
Buildings (9,131,349) (1,311,171) 9,969,849 (472,671)
Improvements other
than buildings (30,556) (73) (30,629)
Total accumulated
depreciation (9,161,905) (1,311,244) 9,969,849 (503,300)
Total capital assets, being
depreciated, net 36,546,284
(975,698) (24,042,151) 11,528,435
Dubuque Initiatives,
capital assets $ 36,785,200 $ (975,698) $ (24,181,067) $ 11,628,435
The Dubuque Initiatives component unit has recognized a loss on impairment of $24,161,156 as of December 31, 2018 due the Organization
including all operations of the Roshek Building of which Dubuque Initiatives is the managing and sole member. Fair value of assets measured
on a nonrecurring basis at December 31, 2018 include the Organization's building and improvements. During the year ended December 31,
2018, the Roshek Building, with a carrying amount of $36,161,156 was written down to its fair value of $12,000,000 resulting in an impairment
loss off $24,161,156. The fair value was based on information derived from third -party appraisers and real estate market participants and is
considered a Level 2 fair value measurement. During December 2019, the Organization sold the Roshek Building for approximately
$12,000,000.
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM DEBT
General Obligation Bonds. The City issues general obligation bonds to provide funds for 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 $111,020,000. During fiscal year 2019, the City issued $3,100,000 of general
obligation bonds.
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, 2019, are as follows:
Date of Interest
Purpose Issue Maturity Dates Rates
Corporate Purpose Series 2012A 03/15/2012 06/01/14-06/01/31 2.00-3.00
Corporate Purpose
and Refund Series 2012B
Corporate Purpose
(taxable) Series 2012C
Corporate Purpose Series 2012D
Corporate Purpose Series 2012E
Corporate Purpose
(taxable) Series 2012F
Corporate Purpose Series 2012H
Corporate Purpose (taxable)
and Refund Series 2012I
Corporate Purpose Series 2014B
Corporate Purpose (taxable)
Series 2014C
Corporate Purpose Series 2016A
Corporate Purpose Refunding
Series 2016B
Corporate Purpose Series 2016C
Corporate Purpose Series 2017A
Corporate Purpose
Refunding Series 2017B
Corporate Purpose
Refunding Series 2017C
Corporate Purpose Series 2018A
Corporate Purpose
Refunding Series 2018B
Corporate Purpose Series 2019A
Corporate Purpose Series 2019B
03/15/2012 06/01/13-06/01/31 2.00-3.13
06/28/2012 06/01/14-06/01/32 2.00-3.90
06/28/2012 06/01/14-06/01/32 2.00-3.46
12/12/2012 06/01/14-06/01/32 2.00-3.00
12/10/2012 06/01/14-06/01/22 1.00-2.20
12/10/2012 06/01/15-06/01/32 2.00-3.00
12/04/2013 06/01/13-06/01/21 0.30-2.20
12/08/2014 06/01/16-06/01/34 3.00-3.65
12/08/2014 06/01/16-06/01/34 3.00-4.16
04/04/2016 06/01/17-06/01/35 2.00-3.75
04/04/2016 06/01/16-06/01/28 2.00-3.00
04/04/2016 06/01/17-06/01/35 2.00-3.13
04/17/2017 06/01/18-06/01/30 3.00
04/17/2017 06/01/18-06/01/30 3.00
04/17/2017 06/01/18-06/01/30 3.00-3.45
03/19/2018 06/01/18-06/01/31 3.00-4.00
03/19/2018 06/01/18-06/01/26 3.00-3.15
06/20/2019 06/01/22-06/01/39 3.00
06/20/2019 06/20/20-06/01/27 3.00
Amount
Originally
Issued
Amount
Outstanding
End of Year
$ 4,380,000 $ 3,115,000
7,495,000
6,965,000
7,175,000
3,640,000
5,275,000
5,140,000
4,370,000
2,410,000
1,035,000 410,000
2,385,000 1,630,000
7,285,000
18,835,000
7,615,000
2,830,000
10,920,000
4,145,000
8,495,000
700,000
16,855,000
7,180,000
2,445,000
6,440,000
3,610,000
6,165,000
9,745,500 8,440,000
2,120,000
4,950,000
1,880,000
4,635,000
1,005,000 900,000
2,240,000 2,240,000
860,000 860,000
$ 114,120,500 $ 84,700,000
80
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2020 $ 4,968,670 $ 1,347,330
2021 4,626,539 1,232,653
2022 3,500,837 1,116,908
2023 3,372,337 1,033,913
2024 3,121,001 951,424
2025-2029 15,818,038 3,528,668
2030-2034 9,756,960 1,228,984
2035-2039 984,753 30,345
Total $ 46,149,135 $ 10,470,225
Business -type Activities
Principal Interest
$ 2,946,330
2,878,462
2,969,163
3,037,663
2,988,999
14,686,643
8,743,359
300,246
$ 1,186,021
1,103,647
1,021,393
936,020
845,547
2,893,063
860,225
9,224
$ 38,550,865 $ 8,855,140
Tax Increment Financing Bonds. The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges property 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, 2019, are as follows:
Date of
Purpose Issue Maturity Dates
Diamond Jo Parking Ramp 10/16/07 06/01/11-06/01/37
Interest
Rates
7.50%
Amount
Originally
Issued
$ 23,025,000
Amount
Outstanding Current
End of Year Portion
$ 19,535,000 $ 550,000
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2020
2021
2022
2023
2024
2025-2029
2030-2034
2035-2037
Total
$ 550,000
590,000
635,000
680,000
730,000
4,565,000
6,555,000
5,230,000
$ 1,465,125
1,423,875
1,379,625
1,332,000
1,281,000
5,516,000
3,506,250
803,250
$ 19,535,000 $ 16,707,125
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM 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, 2019, are as follows:
Purpose
Date of
Issue
Maturity Dates
Water Utility Series 2008D
Water Utility Series 2010D
Sales Tax Incrementa1 2014
Sales Tax Incrementa1 2015A
11/04/2008
09/21/2010
06/14/2014
06/15/2015
06/01/10-06/01/23
06/01/12-06/01/30
06/01/23-06/01/29
06/01/23-06/01/31
Interest
Rates
Amount
Originally
Issued
Amount
Outstanding
End of Year
3.00-5.00 %
2.00-4.00
4.00-5.00
3.25-4.00
$ 1,195,000
5,700,000
7,190,000
20,800,000
$ 34,885,000
$ 410,000
4,085,000
7,190,000
20,800,000
$ 32,485,000
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 for the
year of computation; (b) enable the City to make all required payments, if any, into the debt service
reserve fund. For the current year, principal and interest paid and total customer net revenues (operating
revenues, plus interest earnings, plus depreciation expense) were $497,638 and $3,434,117, respectively.
Except with respect to the Senior SRF Bonds, or any future SRF bonds, the City covenants to establish
and maintain a debt service reserve fund in the amount determined 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, or (c) 125%
of the average annual principal and interest requirements on the bonds.
During the year ended June 30, 2019, 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 2016A 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 $41,173,140.
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2018
NOTE 7 — LONG-TERM DEBT (continued)
The City issued $7,190,000 Sales Tax Increment Revenue Bonds, June 2014 and $20,800,000 June 2016,
for the purpose of paying costs of the acquisition, construction and installation and equipping of the 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 2016A Bonds a
deposit of $2,080,000 was made into the Debt Service Reserve Account, and the Series 2016A 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
June 30
Business -type Activities
Principal
2020 $ 330,000
2021 340,000
2022 355,000
2023 2,490,000
2024 3,535,000
2025-2029 19,710,000
2030-2031 5,725,000
Total $ 32,485,000
Interest
$ 934,308
922,698
910,598
897,275
1,139,525
3,548,338
335,400
$ 8,688,142
Notes Payable. Notes payable have been issued to provide funds for economic development and for the
purchase of capital assets. Notes payable at June 30, 2019, are as follows:
Purpose
40 Main LLC
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
08/06/09 06/30/11-06/30/21 6.50 % $ 690,529 $ 176,054
Current
Portion
$ 85,174
During Fiscal Year 2010, the City issued $690,529 Urban Renewal Tax Increment Revenue Notes,
Taxable Series 2009 (40 Main LLC Project). Interest is payable each December 31 and June 30 at a rate
of 6.50%. Principal payments are due each December 31 and June 30 and range from $24,764 to $45,195
with final maturity in 2021. The proceeds were used for the construction of eighteen apartments for
market -rate rental and 7,800 square feet of retail space by the Developer on the Development Property in
accordance with the terms of the Development Agreement. The debt is owned by Premier Bank and;
therefore, constitutes a direct borrowing.
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2020 $ 85,174 $ 10,235
2021 90,880 4,529
Total $ 176,054 $ 14,764
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM DEBT (continued)
Capital Loan Notes. Revenue capital loan notes have been issued for the planning and construction of
sewer, stormwater, and water capital projects through the State of Iowa State Revolving Loan Funds. The
City issued an additional $5,000 of SRF debt in 2019 as part of the Bee Branch stormwater construction
project and $30,940 for green alley projects reducing stormwater run off, $233,631 for the Catfish Creek
stabilization project, $408,803 for CIWA purchase, $1,541,796 for Kerper sewer project, $444,163 for
Roosevelt tower, and $772,278 for upper Bee Branch culverts. The City has pledged income derived
from the acquired or constructed assets to pay debt service. Capital loan notes payable at June 30, 2019,
are as follows:
Final Amount
Date Maturity Interest Amount Outstanding Current
Purpose Authorized Date Rates Authorized End of Year Portion
Drinking Water 10/18/07 06/01/28 2.00 % $ 1,037,000 $ 482,000 $ 47,000
Clean Water 01/14/09 06/01/28 2.00 1,847,000 971,000 95,000
North Catfish Creek Stormwater 01/13/10 06/01/30 3.25 800,000 502,000 39,000
North Catfish Creek Sewer 01/13/10 06/01/30 3.25 912,000 573,000 44,000
Water Meter Replacement 02/12/10 06/01/30 3.25 7,676,000 2,140,000 149,000
Water and Resource Recovery Center 08/18/10 06/01/39 2.00 74,285,000 60,444,000 2,488,000
Bee Branch Stormwater 10/27/10 06/01/41 3.25 7,850,000 6,429,000 205,000
Cogeneration 05/17/13 06/01/33 2.00 3,048,000 2,257,000 141,000
Meter Replacement Sewer 05/31/13 06/01/30 3.25 3,058,000 2,140,000 149,000
Bee Branch Stormwater 06/19/15 06/01/37 1.43 31,417,953 28,761,589 1,148,000
CIWA Purchase 07/07/17 06/01/37 2.00 10,198,000 4,311,761 523,000
Roosevelt Tower 09/22/17 06/01/40 2.00 475,000 444,163 9,368
Kerper Blvd 03/08/19 06/01/38 2.00 2,763,000 1,427,796 116,000
Bee Branch Culverts 06/07/19 06/01/40 2.00 16,382,000 772,279 -
$ 161,748,953 $ 111,655,588 $ 5,153,368
On October 18, 2007 the City entered into an agreement with the Iowa Finance Authority Drinking Water
Program Revolving Loan Fund for a line of credit up to $1.037 million. This line of credit was issued to
finance the clear well improvements by the Water Fund. The interest rate for this line of credit is 2.00%.
Annual payments began in Fiscal Year 2008, with the last payment in Fiscal Year 2028.The note payable
is payable solely from the Water Fund. The debt is owned by the Iowa Finance Authority and; therefore,
constitutes direct borrowing.
On January 14, 2009 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $1.847 million. This line of credit was issued to
finance the West 32nd Stormwater Detention Basin improvements by the Stormwater Fund. The interest
rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2009, with the last payment in
Fiscal Year 2028.The note payable is payable solely from the Stormwater Fund. The debt is owned by
the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $800,000. This line of credit was issued to
finance the North Catfish Creek improvements by the Stormwater Fund. The interest rate for this line of
credit is 3.25%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year
2030.The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $912,000. This line of credit was issued to
finance the North Catfish Creek improvements by the Sanitary Sewer Fund. The interest rate for this line
of credit is 3.25%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM DEBT (continued)
2030. The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
On February 12, 2010 the City entered into an agreement with the Iowa Finance Authority Drinking
Water Program Revolving Loan Fund for a line of credit up to $7.676 million. This line of credit was
issued to finance the Water Meter Replacements by the Water Fund. The interest rate for this line of
credit is 3.25% Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 2031.
The note payable is payable solely from the Water Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
On August 18, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $74.285 million. This line of credit was issued to
finance the Water & Resource Recovery Center Renovation and the Green Alley Sponsorship Program
by the Sanitary Sewer Fund. The interest rate for this line of credit is 2.00%. Annual payments began in
Fiscal Year 2011, with the last payment in Fiscal Year 2039. The note payable is payable solely from the
Sanitary Sewer Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct
borrowing.
On October 27, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $7.85 million. This line of credit was issued to
finance the Lower Bee Branch Creek Restoration by the Stormwater Fund. The interest rate for this line
of credit is 3.25%. Annual payments began in Fiscal Year 2011, with the last payment in Fiscal Year
2041. The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
On May 17, 2013 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $3.048 million. This line of credit was issued to
finance the Water & Resource Recovery Center Cogeneration by the Sanitary Sewer Fund. The interest
rate for this line of credit is 3.25%. Annual payments began in Fiscal Year 2011, with the last payment in
Fiscal Year 2041. The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned
by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On May 31, 2013 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $3.058 million. This line of credit was issued to
finance the Meter Replacements by the Sanitary Sewer Fund. The interest rate for this line of credit is
3.25%. Annual payments began in Fiscal Year 2011, with the last payment in Fiscal Year 2041. The note
payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
On June 19, 2015 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $31.418 million. This line of credit was issued to
finance the Upper Bee Branch Creek Restoration project and Catfish Creek Sponsorship project by the
Sales Tax Increment Fund. The interest rate for this line of credit is 1.43%. Annual payments began in
Fiscal Year 2016, with the last payment in Fiscal Year 2037. The note payable is payable solely from the
Sales Tax Increment Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes
direct borrowing.
On July 7, 2017 the City entered into an agreement with the Iowa Finance Authority Drinking Water
Program Revolving Loan Fund for a line of credit up to $10.198 million. This line of credit was issued to
finance the purchase of the Central Iowa Water Association Water System and Improvements by the
85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM DEBT (continued)
Water Fund. The interest rate for this line of credit is 2.00%. Annual payments began in Fiscal Year
2018, with the last payment in Fiscal Year 2037. The note payable is payable solely from the Water
Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On September 22, 2017 the City entered into an agreement with the Iowa Finance Authority Drinking
Water Program Revolving Loan Fund for a line of credit up to $475,000. This line of credit was issued to
finance the planning and design of the Roosevelt Water Tower by the Water Fund. The interest rate for
this line of credit is 0%. Annual payments will begin in Fiscal Year 2020, with the last payment in Fiscal
Year 2040. The note payable is payable solely from the Water Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
On March 8, 2019 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $2.763 million. This line of credit was issued to
finance the reconstruction of the Kerper Sanitary Sewer project and the Eagle Point Park Sponsorship
Project by the Sanitary Sewer Fund. The interest rate for this line of credit is 2.00%. Annual payments
began in Fiscal Year 2019, with the last payment in Fiscal Year 2038. The note payable is payable solely
from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance Authority and; therefore,
constitutes direct borrowing.
On June 7, 2019 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $16.382 million. This line of credit was issued to
finance the construction of the Bee Branch Creek Restoration Railroad Culverts project by the
Stormwater Fund. The interest rate for this line of credit is 2.00%. Annual payments will begin in Fiscal
Year 2020, with the last payment in Fiscal Year 2040. The note payable is payable solely from the
Stormwater Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct
borrowing.
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year Business -type Activities
June 30 Principal Interest
2020 $ 5,153,368 $ 2,226,516
2021 5,916,019 2,121,044
2022 5,423,679 2,000,273
2023 5,427,790 1,889,128
2024 5,538,188 1,780,699
2025-2029 28,316,954 7,320,182
2030-2034 25,995,204 4,352,929
2035-2039 29,095,386 2,087,880
2040-2041 789,000 38,675
Total $ 111,655,588 $ 23,817,326
At June 30, 2019, the City of Dubuque had $22,341,408 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 2020. The Sewer Utility revenue capital loan notes covenants
include a requirement for the utility to produce net revenue of at least 110% of the current year debt service
requirement.
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 - LONG-TERM DEBT (continued)
Loans Payable. Loans payable have been issued to fund several City projects. Loans payable at June 30,
2019, are as follows:
Purpose
Parking Lot Purchase
Iowa Finance Authority
Bowling & Beyond Inc.
Central Iowa Water
Date of
Issue
07/08/08
08/26/11
10/15/12
12/01/16
Maturity Dates
01/01/09-07/01/23
06/01/20-06/01/30
12/04/12-12/04/32
12/01/17-12/01/21
Interest
Rates
Amount
Originally
Issued
Amount
Outstanding
End of Year
Current
Portion
5.0 % $ 400,000 $ 152,330 $ 30,988
3.0 4,500,000 3,334,111 34,977
- 1,000,000 650,000 50,000
3.0 5,000,000 3,000,000 1,000,000
$ 10,900,000 $ 7,136,441 $ 1,115,965
On July 8, 2008, the City issued a $400,000 loan. Interest is payable each July 1 and January 1 at a rate of
5.00%. Principal payments are due each July 1 and January 1 and range from $9,111 to $18,645 with final
maturity in 2024. The proceeds were used to purchase parking lots 87, 88, and the north 20 feet 3 inches of
lot 86. The debt is owned by Dubuque Initiatives and; therefore, constitutes a direct borrowing.
On August 26, 2011, the City issued $4.5 million loan. Interest is payable each December 1 and June 1 at a
rate of 3.00%. Principal payments are due each December 1 and June 1 and range from $82,922 to
$2,582,540 with final maturity in 2030. The proceeds were used to pay costs of funding workforce housing
assistance loans to private developers constructing improvements and rehabilitating historic buildings for
residential and commercial use in the Greater Downtown Urban Renewal Area. The debt is owned by the
Iowa Finance Authority and; therefore, constitutes a direct borrowing.
On October 15, 2012, the City terminated the leases with Bowling & Beyond Dubuque, Inc. and entered into
a lease buyout agreement. The purchase price is $1.0 million. There is no interest. Principal payments are
due each July 25 in the amount of $50,000 with final maturity in 2032. The debt is owned by Michael K.
Schmidt and; therefore, constitutes a direct borrowing.
On December 1, 2016, the City issued a $5,000,000 loan. Interest is payable each December 1 at a rate of
3.00%. Principal payments of $1 million are due each December 1 with final maturity in 2022. The proceeds
were used to purchase water supply, service and territory. The debt is owned by Iowa Association of
Regional Utilities (D/B/A Central Iowa Water Association) and; therefore, constitutes a direct borrowing.
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year
June 30
Governmental Activities
Principal
2020 $ 84,977
2021 251,870
2022 257,926
2023 264,164
2024 270,589
2025-2029 1,456,269
2030-2032 1,398,315
Total $ 3,984,110
Interest
$ 100,023
98,974
92,918
86,680
80,255
297,950
37,450
$ 794,250
Business -type Activities
Principal Interest
$ 1,030,988
1,032,557
1,034,205
35,937
18,644
$ 97,234
65,665
34,017
2,285
466
466
$ 3,152,331 $ 200,133
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2019, was as
follows:
Governmental activities:
General obligation bonds
Unaccreted premium
Unamortized discounts
Total general obligation bonds
Tax increment financing bonds
Unamortized discounts
Total tax increment financing bonds
Notes payable
Loans payable
Compensated absences
Total governmental activities
Business -type activities:
General obligation bonds
Unaccreted premium
Unamortized discounts
Total general obligation bonds
Revenue bonds
Unaccreted premium
Unamortized discounts
Total revenue bonds
Notes payable
Loans payable
Compensated absences
Total business -type activities
Balance
Beginning
of Year
Additions
Reductions
Balance End Due Within
of Year One Year
$ 48,101,448 $ 2,883,875 $ (4,836,188) $ 46,149,135 $ 4,968,670
782,611 81,693 (52,213) 812,091 -
(50,561) - 7,163 (43,398)
48,833,498 2,965,568 (4,881,238) 46,917,828 4,968,670
20,045,000 (510,000) 19,535,000 550,000
(177,438) 8,872 (168,566) -
19,867,562 (501,128) 19,366,434 550,000
255,881 (79,827) 176,054 85,174
4,067,700 (83,590) 3,984,110 84,977
5,505,660 2,713,127 (2,642,243) 5,576,544 403,220
$ 78,530,301 $ 5,678,695 $ (8,188,026) $ 76,020,970 $ 6,092,041
$ 41,238,549
774,203
(32,842)
41,979,910
32,800,000
733,168
(59,035)
33,474,133
112,765,210
4,181,826
727,812
$ 216,125
6,112
222,237
3,436,611
334,805
$ 193,128,891 $ 3,993,653
$ (2,903,809)
(56,133)
3,800
$ 38,550,865
724,182
(29,042)
(2,956,142) 39,246,005
(315,000)
(66,360)
4,927
32,485,000
666,808
(54,108)
(376,433) 33,097,700
(4,546,232)
(1,029,495)
(358,042)
111,655,589
3,152,331
704,575
$ 2,946,330
2,946,330
330,000
330,000
5,153,368
1,030,988
54,366
$ (9,266,344) $ 187,856,200 $ 9,515,052
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
Legal Debt Margin Calculation.
Estimated actual value $ 4,430,255,110
Debt limit - 5% of total actual 221,512,756
valuation
Debt applicable to limit
(117,222,925)
Legal debt margin $ 104,289,831
88
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 7 — LONG-TERM 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, 2019 is as follows:
Amount Amount
Interest Originally Outstanding
Purpose Date of Issue Maturity Date Rate Issued End of Year
Landfill Facility 12/30/2014 06/01/16-06/01/34 2.0-4.0 % $ 4,500,000 $ 3,735,000
Landfill Facility 12/28/2016 06/01/17-06/01/36 3.0 5,100,000 4,595,000
$ 9,600,000 $ 8,330,000
Annual debt service requirements to maturity of the general obligation bond is as follows:
Fiscal Year June 30
Principal Interest
2020 410,000 250,659
2021 425,000 238,359
2022 435,000 225,609
2023 450,000 210,459
2024 465,000 198,609
2025-2029 2,525,000 791,588
2030-2034 2,950,000 392,625
2035-2036 670,000 32,825
Total $ 8,330,000 $ 2,340,733
Changes in Long -Term Liabilities. Long term liability activity for the year ended June 30, 2019 is as
follows:
Balance
Beginning Balance Due Within
of Year Additions Reductions End of Year One Year
General obligation bond $ 8,730,000 $ - $ (400,000) $ 8,330,000 $ 410,000
Unaccreted premium 230,386 (12,857) 217,529
Total general obligation bond $ 8,960,386 $ $ (412,857) $ 8,547,529 $ 410,000
89
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 government 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 125%
of expected claims. 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 has established a Workers' Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Workers' compensation benefits were
self -insured up to a specific stop -loss amount of $750,000, and an aggregate -stop loss consistent with
statutory limits for 2019. 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 participate in both programs and make payments to the Health Insurance Reserve
Fund and the Workers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior and current year claims. The claims liability of $975,946 in the Health Insurance Reserve
Fund and $1,023,090 in the Workers' 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 information prior 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, 2019 and 2018, are summarized as follows:
Liabilities at June 30, 2017
Claims and changes in estimates during fiscal year 2018
Claim payments
Liabilities at June 30, 2018
Claims and changes in estimates during fiscal year 2019
Claim payments
Liabilities at June 30, 2019
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
$ 704,944 $ 1,118,237
9,540,883 721,516
(9,745,993) (843,066)
499,834 996,687
9,637,510 693,551
(9,161,398) (667,148)
$ 975,946 $ 1,023,090
90
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 775 members include various
governmental entities throughout the State of Iowa. The Pool was formed in August 1986 for 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 portion of any deficiency in capital. Capital contributions are made during
the first six years of membership 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 property
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 for
the year ended June 30, 2019, were $457,116.
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 $500,000
per claim. Excess coverage is provided for claims exceeding $500,000 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, property loss 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 exhausts 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, 2019, settled claims have not
exceeded the risk pool or reinsurance company coverage since the Pool's inception.
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 forth in the Pool's intergovernmental
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, 2019.
Litigation
The City Attorney reported 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 judgments against the City.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing
construction completed through June 30, 2019. The City has additional commitments for signed
construction contracts of $34,063,822 as of June 30, 2019. 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 for only that portion of
construction contracts representing construction completed through June 30, 2019. DMASWA has an
additional commitments for a signed construction contracts of $546,862 as of June 30, 2019. These
commitments will be partially funded by bond proceeds.
Southwest Arterial
The City is currently in process of constructing the Southwest Arterial. As of June 30, 2019, the City has
expended $51,230,118 on the project. Upon completion of the project, the Southwest Arterial will be
reverted to the State of Iowa.
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description - 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. No assets are accumulated in a trust that meets the criteria in
paragraph 4 of GASB Statement 75. 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 for 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) or the
Municipal Fire and Police Retirement System of Iowa (MFPRSI). 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 522 active and 89 retired members in the plan, as of most recent
actuarial valuation report.
Funding Policy - 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.
Total OPEB Liability - The City's OPEB liability of $6,121,366 was measured as of June 30, 2019, and
was determined by an actuarial valuation as of July 1, 2017. The City's proportion is based on the
number of employees in the plan. The City's proportion was 98.1% as of June 30, 2019.
Changes in the Total OPEB Liability
Total OPEB Liability beginning of year
Changes for the year:
Service cost
Interest
Other changes
Changes in assumptions
Benefit payments
Net Changes
Total OPEB Liability end of year
Total OPEB Liabiilty
$
6,016,233
296,597
172,576
2,582
85,951
(452,573)
105,133
$ 6,121,366
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Methods and Assumptions - The total OPEB liability in the July 1, 2017 actuarial valuation
was determined using the following actuarial assumptions and the entry age normal actuarial cost
method, applied to all periods included in the measurement.
Rate of inflation
effective June 30, 2018 3.00% per annum
Rates of salary increase 4.00% per annum,
effective June 30, 2018 including inflation
Discount rate 2.79% compounded annually,
effective June 30, 2019 including inflation
Healthcare cost trend rate 7.0% initial rate decreasing by 0.25%
effective June 30, 2018 annually to an ultimate rate of 5.00%
Discount Rate - The discount rate used to measure the total OPEB liability was 2.79% which reflects the
index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or
higher as of the measurement date.
Mortality rates are from the RP 2014 Combined Annuitant Mortality Table. Annual retirement and
termination probabilities were developed consistent with the City's experience and the IPERS and
MFPRSI retirement patterns.
Projected claim costs of the medical plan are $11,955-$17,015 per year for retirees depending on the age
of retiree. The actuarial assumptions used in the July 1, 2017 valuation were based on the results of
actual experience dates study with dates corresponding to those listed above.
Sensitivity of the City's Total OPEB Liability to Changes in the Discount Rate - The following presents
the total OPEB Liability of the City, as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is 1% lower (1.79%) or 1% higher (3.79%) than the current discount
rate.
1% Decrease (1.79%) Discount Rate (2.79%) 1% Increase (3.79%)
Total OPEB Liability $ 6,593,124 $ 6,121,366 $ 5,682,587
Sensitivity of the City's Total OPEB Liability to Changes in the Healthcare Cost Trend Rates - The
following presents the total OPEB Liability of the City, as well as what the City's total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% lower (6.00%) or 1% higher
(8.00%) than the current healthcare cost trend rates.
1% Decrease (6.00%) Healthcare Cost Trend 1% Increase (8.00%)
Rate (7.00%)
Total OPEB Liability $ 5,488,823 $ 6,121,366 $ 6,873,092
94
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30,
2019 the City recognized OPEB expense of $498,134. At June 30, 2019 the City reported deferred
outflows of resources related to OPEB from the following sources:
Changes in Assumptions
Deferred Outflows of Resources
$ 235,366
The amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB
expense as follows:
Year Ending June 30 Amount
2020 $ 29,081
2021 29,081
2022 29,081
2023 29,081
2024 29,081
Thereafter 89,961
$ 235,366
Dubuque Metropolitan Area Solid Waste Agency Specific (DMASWA) OPEB Disclosures
Total OPEB Liability- DMASWA OPEB liability of $117,066 was measured as of June 30, 2019, and
was determined by an actuarial valuation as of July 1, 2017. The Agency's portion is based on the
number of employees in the plan. The Agency's portion was 1.9% as of June 30, 2019.
Total OPEB
Liability
Total OPEB Liability beginning of year $ 116,294
Changes for the year:
Service Cost 5,672
Interest 3,300
Other Changes (1,188)
Changes in assumptions 1,643
Benefit payments (8,655)
Net Changes 772
Total OPEB Liability end of year $ 117,066
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Sensitivity of the City's Total OPEB Liability to Changes in the Discount Rate- The following presents
the total OPEB Liability of the DMASWA, as well as what the DMASWA's total OPEB liability would
be if it were calculated using a discount rate that is 1% lower (1.79%) or 1% higher (3.79%) than the
current discount rate.
1% Decrease (1.79%) Discount Rate (2.79%) 1% Increase (3.79%)
Total OPEB Liability $ 126,088 $ 117,066 $ 108,675
Sensitivity of the DMASWA's Total OPEB Liability to Changes in the Healthcare Cost Trend Rates- The
following presents the total OPEB Liability of the DMASWA, as well as what the DMASWA's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (6.00%)
or 1% higher (8.00%) than the current healthcare cost trend rates.
Total OPEB Liability
1% Decrease (6.00%) Healthcare Cost Trend 1% Increase (8.00%
Rate (7.0%)
$ 104,969 $ 117,066
$ 131,442
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30,
2019 the DMASWA recognized OPEB expense of $9,648. At June 30, 2019 the DMASWA reported
deferred outflows of resources related to OPEB from the following sources:
Changes in Assumptions
Deferred Outflows of Resources
$ 4,501
The amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB
expense as follows:
Year Ending June 30 Amount
2020 $ 556
2021 556
2022 556
2023 556
2024 556
Thereafter 1,721
$ 4,501
96
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS
Aggregate Pension Expense
The primary government participates in two public pension systems, Iowa Public Employees' Retirement
System (IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). The component
unit DMASWA participates in IPERS only. The following secitons outline the pension related
disclosures for each pension of both entities. The aggregate amount of recognized pension expense for
the period associated with the net pension liability for all plans is $6,737,358 for the primary
government. Other aggregate amounts related to pension are separately displayed in the financial
statements.
Iowa Public Employees Retirement System IPERS
Plan Description — IPERS membership is mandatory for employees of the City, except for 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.org.
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 normal retirement age and receive monthly benefits
without an early -retirement reduction. Normal 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 formula 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
for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began
receiving benefits prior to July 1990 receive a guaranteed dividend with the regular November benefit
payments.
97
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
Disability 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 formula, 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 actuarial contribution rate be determined using the
"entry age normal" actuarial cost method and the actuarial assumptions and methods approved by the
IPERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial
liability payment based on a 30-year amortization 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 2019, pursuant to the required rate, Regular members contributed 6.29% of covered payroll
and the City contributed 9.44% for a total rate of 15.73%.
The City's total contributions to IPERS for the year ended June 30, 2019 were $2,402,552. The Dubuque
Metropolitan Area Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2019
were $58,840.
City Specific IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2019, the City reported a liability of $21,091,719 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the net pension liability was determined 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, 2018, the City's collective proportion was .33329% which was a decrease of -0.00161% from
its proportion measured as of June 30, 2017.
98
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2019, the City recognized pension expense of $2,584,658. At June 30, 2019,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Differences between expected and
actual experience
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 115,643 $ 476,707
Changes of assumptions 3,008,864
Net difference between projected and actual 579,533
earnings on IPERS' investments
Changes in proportion and differences between
City's contributions and City's proportionate share
of contributions 5,543 757,210
City contributions subsequent to the
measurement date 2,402,552
Total
$ 5,532,602 $ 1,813,450
$2,402,552 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, 2020. 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
2020 $ 1,142,646
2021 546,065
2022 (282,073)
2023 (64,647)
2024 (25,391)
$ 1,316,600
Sensitivity of the City's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate- The following presents the City's proportionate share of the net pension liability calculated using
the discount rate of 7.00%, 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 (6.00%) or 1.00% higher (8.00%)
than the current rate.
99
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
1% Discount 1%
Decrease Rate Increase
(6.0)% (7.0)% (8.0)%
City's proportionate share of
the net pension liability: $ 35,796,886 $ 21,091,719 $ 8,756,270
Dubuque Metropolitan Area Sold Waste Agency Specific (DMASWA) IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2019, the DMASWA reported a liability of $516,544 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the net pension liability was determined 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, 2018, the DMASWA's collective proportion was 0.0081976%
which was a decrease of 0.0003264% from its proportion measured as of June 30, 2017.
For the year ended June 30, 2019, the DMASWA recognized pension expense of $46,753. At June 30,
2019, the DMASWA 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
Differences between expected and
actual experience $ 2,832 $ 11,675
Changes of assumptions 73,688 -
Net difference between projected and actual - 14,193
earnings on IPERS' investments
Net changes in proportion and differences between
Agency's contributions and Agency's proportionate
share
of contributions 136 18,544
Agency contributions subsequent to the
measurement date 58,840
Total $ 135,496 $ 44,412
100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
$58,840 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, 2020. 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
2020 $ 28,098
2021 13,428
2022 (6,936)
2023 (1,590)
2024 (756)
$ 32,244
Sensitivity of the Agency's Proportionate Share of the Net Pension Liability to Changes in the Discount
Rate - The following presents the Agency's proportionate share of the net pension liability calculated
using the discount rate of 7.00%, 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% lower (6.00%) or 1% higher
(8.00%) than the current rate.
1% Discount 1%
Decrease Rate Increase
(6.00)% (7.00)% (8.00)%
Agency's proportionate share of
the net pension liability: $ 876,678 $ 516,544 $ 214,444
There were no non -employer contributing entities at 'PERS.
Actuarial Assumptions - The total pension liability in the June 30, 2018, actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation 2.60% per annum
(effective June 30, 2017)
Rates of salary increase 3.25 to 16.25% average, including inflation.
(effective June 30, 2017) Rates vary by membership group.
Long-term Investment rate of return 7.00% , compounded annually, net of investment
(effective June 30, 2017) expense, including inflation.
Wage Growth 3.25% per annum based on 2.60% inflation
(effective June 30, 2017) and 0.65% real wage inflation
101
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an economic
assumption study dated March 24, 2017 and a demographic assumption study dated June 28, 2018.
Mortality rates used in the 2018 valuation were based on the RP-2014 Employee and Healthy Annuitant
Tables with MP-2017 generational adjustments.
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-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Asset Class
Asset
Allocation
Long -Term Expected
Real Rate of Return
Domestic equity 22 % 6.01%
International equity 15 6.48
Global smart beta equity 3 6.23
Core plus fixed income 27 1.97
Public credit 3.5 3.93
Public real assets 7 2.91
Cash 1.0 (0.25)
Private equity 11 10.81
Private real assets 8 4.14
Private credit 3 3.11
Total 100 %
Discount Rate - The discount rate used to measure the total pension liability was 7.00%. 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, actuarially 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 return 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.ipers.org.
Payables to IPERS - At June 30, 2019, the City reported payables to the defined benefit pension plan of
$2,648 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.
102
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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.org.
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 informational 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, for 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 work. 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.
Disability 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 or 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 for 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.
103
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 for the year ended June 30,
2019.
Employer contribution rates are based upon an actuarially determined normal contribution rate and set by
state statute. The required actuarially determined 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 normal contribution rate is provided by state statute to be the actuarial 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 26.02% for the year ended June 30, 2019.
The City's contributions to MFPRSI for the year ended June 30, 2019 was $3,695,595.
If approved by the state legislature, state appropriation may further reduce the employer's contribution
rate, but not below the minimum statutory 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 Reporting for
Pension Plans, (GASB 67).
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2019.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2019, the City reported a liability of $28,959,783 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2018, and the total pension liability used to calculate the new pension liability was determined by an
104
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
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 the pension plan relative to the contributions of all MFPRSI participating
employers. At June 30, 2018, the City's proportion was 4.863891% which was an increase of 0.079023%
from it proportions measured as of June 30, 2017.
For the year ended June 30, 2019, the City recognized pension expense of $4,152,700. At June 30, 2019,
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 $ 777,429 $ 392,854
actual experience
Changes of assumptions 2,473,460 231,423
Net difference between projected and actual
earnings on pension plan investments 1,416,546
Changes in proportion and differences between 320,102 729,913
City contributions and proportionate share
of contributions
City contributions subsequent to the 3,695,595
measurement date
Total
$ 8,683,132 $ 1,354,190
$3,695,595 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, 2020. 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
2020 $ 531,641
2021 2,191,141
2022 1,141,940
2023 (389,323)
2024 157,948
$ 3,633,347
105
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 11— EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions - The total pension liability in the June 30, 2018 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 3.75% to 15.11% including inflation
Investment rate of return 7.50%, net of pension plan investment expense,
including inflation
The actuarial assumptions used in the June 30, 2018 valuation were based on the results of an actuarial
experience study for the period from July 1, 2007 to June 30, 2017.
Mortality rates were based on the RP-2014 Blue Collar Healthy Annuitant Table with males set -forward
zero years, females set -forward one year and disabled individuals set -forward one year (male only rates),
with generational projection of future mortality improvement with 50% of Scale BB beginning 2017.
The long-term expected rate of return on MFPRSI investments was determined using a building-block
method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of
investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation. The best estimates of geometric
real rates of return for each major asset class are summarized in the following table:
Asset Class
Long -Term Expected
Target Allocation Real Rate of Return
Core plus fixed income
Emerging markets debt
Domestic equities
Master limited partnerships (MLP)
International equities
Core investments
Strategic investments
Private equity
Private non -core real estate
Private core real estate
Real estate
Total
7.0%
3.0
12.5
5.0
12.5
5.0
5.0
40.0%
35.0
15.0
10.0
100.0%
3.3%
6.3
5.8
9.0
7.3
6.0
9.0
8.0
6.0
106
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 determine 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 return on MFPRSI investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of City's Proportionate Share of the Net Pension Liability to Changes 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.
1%
Decrease
(6.50)%
Discount 1%
Rate Increase
(7.50)% (8.50)%
City's proportionate share of
the net pension liability: $ 48,318,399 $ 28,959,783 $ 12,931,488
MFPRSI Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued MFPRSI financial report which is available on MFPRSI's website at
www.mfprsi.org.
Payables to MFPRSI - At June 30, 2019, City of Dubuque, Iowa reported payables to the defined benefit
pension plan of $0 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.
107
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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) for thirty years.
State governments 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 an annual report with the State to provide compliance with its legal requirements of
maintaining a balance per the prescribed formula. Any adjustments 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 environmental monitoring of the landfill during the post -closure period and (4) the cost
of any environmental cleanup required after closure. Estimated total cost is based on an engineer's estimate
for 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:
2019
Closure $ 3,019,861
Post -closure care 2,307,129
Totals $ 5,326,990
The total closure and post -closure care costs for the DMASWA has been estimated at approximately
$5,326,990 as of June 30, 2019, and the portion of the liability, that has been recognized is $3,547,590.
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 95% of cell 9 Phase I and 41% of cell 9 Phase II and 35% of cell
9 Phase III. 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 $4,790,910 as of June 30, 2019. The Agency
will recognize the remaining estimated cost of closure and post closure care of $1,779,400 over the estimated
remaining life of 17 years as the remaining capacity is filled.
NOTE 13 — LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, airport property (hangars and terminal space), farm 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, 2019 is $6,014,509, with $142,423 of depreciation expense during
the year ended June 30, 2019. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2019, the DRA lease generated $5,149,188 in lease revenue.
108
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 14 — SUBSEQUENT EVENTS
On May 20, 2019 a public hearing was held on a $4.4 million Water Revenue Capital Loan SRF Note. The
loan funds will be used to pay costs of acquisition, construction, reconstruction, extending, remodeling,
improving, repairing and equipping all or part of the Municipal Water Utility, including those costs
associated with the Roosevelt Street water tower and water distribution improvements project and the Eagle
Point water treatment plant and water distribution improvements project; and refunding the Water Revenue
Capital Loan Notes Anticipation Project Note, Series 2017, dated September 22, 2017. The Water Revenue
Capital Loan Notes have an interest rate of 2.00 percent per annum maturing on June 1, 2040. Complete
action was taken on July 8, 2019.
On July 3, 2019 General Obligation Refunding Bonds, Series 2019C were issued for $4,240,000 with an
average interest rate of 3.00 percent per annum maturing on June 1, 2032. The Series 2019C General
Obligation Refunding Bonds were issued at a premium of $192,045 less costs of issuance and underwriter's
discount totaling $57,458. Net proceeds were $4,374,587. The Series 2019C General Obligation Refunding
Bonds were issued to refund the outstanding portion of the Series 2012D General Obligation Bonds, which
were outstanding in the aggregate principal amount of $4,370,000. The refunded Series 2012D were called
for redemption on July 3, 2019 and are considered defeased. The net effect of the issuance of the Series
2019C Bonds was a decrease in total debt service of $193,675 in gross savings, or $166,784 in present value
savings.
On September 16, 2019 a public hearing was held on a $25,000 General Fund Lease Agreement. The general
fund lease proceeds will be used in order to provide funds to pay costs of the acquisition of personal property
for the City, and more specifically, for the lease of a printer. The lease is a 60-month operating lease with
Midwest Business Products.
On September 16, 2019 a public hearing was held on a $170,000 General Fund Lease Agreement. The
general fund lease proceeds will be used in order to provide funds to pay costs of the acquisition of personal
property for the City, and more specifically, for the lease of a postage machine. The lease is a 60-month
operating lease with Postal Source.
On October 7, 2019 the City Council approved the Termination of Redevelopment Project Agreement
between and among Flexsteel Industries Inc., Dubuque County, Dubuque Initiatives and the City of Dubuque
and the Amendment to Offer to Buy Real Estate and Acceptance between Dubuque County and the City of
Dubuque. In 2017, the City of Dubuque, Dubuque Initiatives and Flexsteel entered into agreements designed
to accomplish three objectives: (1) build a new Flexsteel manufacturing facility in Dubuque; (2) avoid the
creation of a potential blight on Dubuque's north end; and (3) facilitate the rehabilitation and reutilization of
the Flexsteel property at 3200 Jackson Street for new business development. The first goal has been
accomplished with the new Flexsteel manufacturing facility in Dubuque's Industrial Center South. The
second goal is underway with environmental and demolition activity at 3200 Jackson Street. Regarding the
third goal, Flexsteel has decided to retain and redevelop the Jackson Street property, rather than the original
plan to transfer the property to Dubuque Initiatives for redevelopment using financial assistance from the
City, Dubuque County, the State of Iowa and Flexsteel. To implement this change required the parties to
terminate the Redevelopment Agreement for the property at 3200 Jackson. In addition to Flexsteel retaining
the property, the Termination Agreement releases the City, Dubuque County and the State of Iowa from their
pledged financial assistance of approximately $3,000,000. Additionally, the initial real estate sales agreement
between the City and Dubuque County for the land purchased by Flexsteel to build its new facility was
amended. The Amendment provides for the return of escrowed funds to the City and Dubuque County which
were originally targeted to support the redevelopment of 3200 Jackson. The City of Dubuque had $683,567of
escrow funds released back to the City on November 25, 2019.
109
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
NOTE 15 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) has issued statements not yet implemented by the
City. The statements which might impact the City are as follows:
Statement No. 84, Fiduciary Activities, will be effective for 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. 87, Leases, will be effective for 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 governments.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, will be
effective for the fiscal year June 30, 2021. The objectives of this Statement are to enhance the relevance and
comparability of information about capital assets and cost of borrowing for a reporting period and to simplify
accounting for interest cost incurred before the end of a construction period.
Statement No. 90, Majority Equity Interest -an amendment of GASB Statement No. 14 and No. 61, will be
effective for the fiscal year June 30, 2020. The primary objective of this Statement are to improve the
consistency and comparability of reporting a government's majority equity interest in a legally separate
organization and to improve the relevance of financial statement information for certain component units.
Statement No. 91, Conduit Debt Obligations, will be effective for the fiscal year June 30, 2022. The primary
objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers
and eliminated diversity in practice associated with (1) commitments extended by issuers, (2) arrangements
associated with conduit debt obligations, and (3) related note disclosures.
Statement No. 92, Omnibus 2020, issued January 2020, will be effective for the City beginning with its fiscal
year ending June 30, 2022 except for the requirements related to the effective date of Statement No. 87 and
Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative
instruments effective upon issuance. The objectives of this Statement are to enhance comparability in
accounting and financial reporting and to improve the consistency of authoritative literature by addressing
practice issues that have been identified during implementation and application of certain GASB Statements.
This Statement addresses a variety of topics including leases, intra-entity transfers, assets accumulated for
postemployment benefits, applicability of Statement No. 84 to postemployment benefit arrangements,
measurement of liabilities related to asset retirement obligations in a government acquisition, reporting by
public entity risk pools for amounts that are recoverable from reinsurers or excess insurers, nonrecurring fair
value measurements of assets or liabilities, and terminology to refer to derivative instruments.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
110
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2019
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 governments 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 or the citizens of those
governments.
City 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. For these types of projects, the City
enters into agreements with developers which require the City, after developers meet the terms of the
agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an economic
development grant or to pay the developers a predetermined dollar amount. No other commitments were
made by the City as a part of these agreements.
For the year ended June 30, 2019, the City abated $2,542,358 of property tax under the urban renewal and
economic development projects.
111
THIS PAGE IS INTENTIONALLY LEFT BLANK
112
Required Supplementary Information
June 30, 2019
City of Dubuque, Iowa
113
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, 2019
RECEIPTS
Property tax
Tax increment financing
Other City tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for fees and service
Special assessments
Miscellaneous
Total Receipts
EXPENDITURES
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business -type activities
Total Expenditures
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES, NET
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
BALANCE, BEGINNING OF YEAR
BALANCE, ENDING OF YEAR
Actual
$ 26,470,768
9,867,968
17,758,632
1,646,185
15,855,965
37,963,794
39,585,889
140,536
9,670,160
158,959,897
Budgeted Amounts
Original Final
$ 25,766,328
10,182,997
18,093,849
1,562,233
13,276,669
34,564,606
43,495,519
30,000
8,173,863
155,146,064
$ 25,766,328
10,182,997
18,093,849
1,633,906
13,951,522
79,092,743
43,532,641
30,000
8,506,759
200,790,745
Final to Actual
Variance
$ 704,440
(315,029)
(335,217)
12,279
1,904,443
(41,128,949)
(3,946,752)
110,536
1,163,401
(41,830,848)
28,828,548 29,625,497 30,325,550 1,497,002
13,177,053 12,601,671 13,884,882 707,829
988,853 1,003,132 1,129,771 140,918
12,149,878 12,657,491 13,693,874 1,543,996
14,216,512 14,224,282 14,553,885 337,373
9,036,511 9,504,245 9,744,730 708,219
10,593,529 10,602,063 11,008,961 415,432
27,813,562 27,768,715 83,066,966 55,253,404
43,181,009 56,814,009 74,161,750 30,980,741
159,985,455 174,801,105 251,570,369 91,584,914
(1,025,558)
6,565,819
5,540,261
75,342,368
$ 80,882,629
See Notes to Required Supplementary Information.
(19,655,041)
11,406,977
(8,248,064)
39,769,337
$ 31,521,273
(50,779,624)
18,618,270
(32,161,354)
88,559,720
$ 56,398,366
49,754,066
(12,052,451)
37,701,615
$ 37,701,615
114
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2019
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 for 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 31
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 for 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 or 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, 2019, was amended two times during the year to allow the
City to increase function expenditures by $76,769,264 primarily for the carry -forward of unfinished
capital improvement projects. During the year ended June 30, 2019, no function expenses exceeded the
budgeted amount.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Receipts/Revenue
Expenditures/Expenses
Deficiency of Receipts/Revenue
Under Expenditures/Expenses
Other Financing Sources
Net
Balance, Beginning
Balance, Ending
Budgetary
Basis
$ 158,959,897
159,985,455
Accrual
Adjustments
$ (8,553,352) $ 150,406,545
(14,073,937) 145,911,518
Modified
Accrual/Accrual
Basis
Governmental Enterprise
Funds Funds
Modified Accrual
Accrual Basis Basis
$ 113,356,370 $ 37,050,175
107,019,400 38,892,118
Total
$ 150,406,545
145,911,518
(1,025,558) 5,520,585 4,495,027 6,336,970 (1,841,943) 4,495,027
6,565,819 9,929,700 16,495,519 1,298,996 15,196,523 16,495,519
5,540,261 15,450,285 20,990,546 7,635,966 13,354,580 20,990,546
75,342,368 161,890,066 237,232,434 55,276,503 181,955,931 237,232,434
$ 80,882,629 $ 177,340,351 $ 258,222,980 $ 62,912,469 $ 195,310,511 $ 258,222,980
115
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
LAST FIVE FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2019 2018 2017 2016 2015
City's proportion of the net pension liability (asset) 0.33329% 0.33490% 0.34275% 0.35135% 0.37035%
City's proportionate share of the net pension liability $ 21,091 $ 22,309 $ 21,570 $ 17,358 $ 14,688
City's covered payroll $ 25,024 $ 24,961 $ 24,597 $ 24,039 $ 24,210
City's proportionate share of the net pension liability
as a percentage of its covered payroll 84.28% 89.38% 87.69% 72.21% 60.67%
Plan fiduciary net position as a percentage of the total 83.62% 82.21% 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 preceding fiscal year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However,
until a full 10-year trend is compiled, the City will present information for those years for which
information is available.
116
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
Statutorily required contribution
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
$ 2,403 $ 2,235 $ 2,229 $ 2,196 $ 2,151 $ 2,164 $ 2,022 $ 2,022 $ 1,573 $ 1,415
Contributions in relation to the
statutorily required contribution (2,403) (2,235) (2,229) (2,196) (2,151) (2,164) (2,022) (2,022) (1,573) (1,415)
Contribution deficiency (excess) $ - $ - $ $ - $ - $ - $ $ - $ - $
City's covered payroll $ 25,423 $ 25,024 $ 24,961 $ 24,597 $ 24,039 $ 24,210 $ 23,321 $ 23,676 $ 22,627 $ 21,275
Contributions as a percentage of
covered payroll 9.45% 8.93% 8.93% 8.93% 8.95% 8.94% 8.67% 8.54% 6.95% 6.65%
117
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30, 2019
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.
Changes of assumption:
The 2018 valuation implemented the following refinements as a result of a demographic assumption
study dated June 28, 2018:
• Changed mortality assumptions to the RP-2014 mortality tables with mortality
improvements modeled using Scale MP-2017.
• Adjusted retirement rates
• Lowered disability rates
• Adjusted the probability of a vested Regular member electing to receive a deferred
benefit.
• Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements as a result of an experience study dated
March 24, 2017:
• Decreased the inflation assumption from 3.00% to 2.60%.
• Decreased the assumed rate of interest on member accounts from 3.75% to 3.50% per
year.
• Decreased the discount rate from 7.50% to 7.00%.
• Decreased the wage growth assumption from 4.00% to 3.25%.
• Decreased the payroll growth assumption from 4.00% to 3.25%.
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 member accounts from 4.00% to 3.75% per
year.
• Adjusted male mortality rates for retirees in the Regular membership group.
• Reduced retirement rates for sheriffs and deputies between the ages of 55 and 64.
• Moved from an open 30-year amortization period to a closed 30-year amortization period
for the UAL (unfunded actuarial liability) 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 mortality assumptions.
• Modified retirement rates to reflect fewer retirements.
• Lowered disability rates at most ages.
• Lowered employment termination rates.
• Generally increased the probability of terminating members receiving a deferred
retirement benefit.
• Modified salary increase assumptions based on various service duration.
118
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST FIVE FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2019 2018 2017 2016 2015
City's proportion of the net pension liability (asset) 4.8639% 4.7840% 4.9533% 4.9854% 5.0788%
City's proportionate share of the net pension liability $ 28,960 $ 28,062 $ 30,971 $ 23,423 $ 18,410
City's covered payroll $ 14,118 $ 13,552 $ 13,423 $ 13,052 $ 12,968
City's proportionate share of the net pension liability
as a percentage of its covered payroll 205.13% 207.07% 230.73% 179.46% 141.96%
Plan fiduciary net position as a percentage of the 81.07% 80.60% 78.20% 83.04% 86.27%
total pension liability
*In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were
determined as of June 30 of the preceding fiscal year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However,
until a full 10-year trend is compiled, the City will present information for those years for which
information is available.
119
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
2019 2018 2017 2016 2015 2014 2013 2012 2011 2010
Statutorily required contribution $ 3,696 $ 3,626 $ 3,513 $ 3,727 $ 3,969 $ 3,906 $ 3,310 $ 3,177 $ 2,404 $ 1,966
Contributions in relation to the
statutorily required contribution
(3,696) (3,626) (3,513) (3,727) (3,969) (3,906) (3,310) (3,177) (2,404) (1,966)
Contribution deficiency (excess) $ - $ - $ - $ - $ - $ - $ - $ - $ -
City's covered payroll $ 14,203 $ 14,118 $ 13,552 $ 13,423 $ 13,052 $ 12,968 $ 12,672 $ 12,831 $ 12,080 $ 11,565
Contributions as a percentage of
covered payroll 26.02% 25.68% 25.92% 27.77% 30.41% 30.12% 26.12% 24.76% 19.90% 17.00%
120
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30, 2019
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions
The 2017 valuation added five years projection of future mortality improvement with Scale BB.
The 2016 valuation changed postretirement mortality rates to the RP-2000 Blue Collar Combined
Healthy 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 2015 valuation phased in the 1994 Group Annuity Mortality Table for post retirement mortality.
This resulted in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994
Group Annuity Mortality Table.
The 2014 valuation phased in the 1994 Group Annuity Mortality Table for post retirement mortality.
This resulted in a weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994
Group Annuity Mortality Table.
121
CITY OF DUBUQUE, IOWA
SCHEDULE OF CHANGES IN
TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
LAST TWO FISCAL YEARS
2019 2018
Service Cost $ 296,597 $ 277,469
Interest Cost 172,576 172,219
Changes in assumptions 85,951 138,371
Other Changes 2,582 58,589
Benefit payments (452,573) (474,856)
Net change in total OPEB Liability 105,133 171,792
Total OPEB liability beginning of year 6,016,233 5,844,441
Total OPEB liability end of year $ 6,121,366 $ 6,016,233
Covered -employee payroll $ 39,626,000 $ 39,782,000
Total OPEB liability as a percentage
of covered -employee payroll 15.45% 15.12%
Notes to Schedule of Changes in the Total OPEB Liability and Related Ratios
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75.
Changes in benefit terms:
There were no significant changes in benefit terms.
Change in assumptions:
Changes in assumptions and other inputs reflect the effects of changes in the discount rate, health care
trend rates and other changes.
Note: GASB Statement No. 75 requires ten years of information to be presented in this table. However,
until a 10-year trend is completed, the City will present information for those years for which information
is available.
122
THIS PAGE IS INTENTIONALLY LEFT BLANK
123
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 for the operations of federal Section VIII
existing, voucher, and moderate rehabilitation projects.
Employee Benefits 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 for the financing of public improvements
that are deemed to benefit primarily the properties against which special assessments are levied and
to accumulate monies for the payment of principal and interest on the outstanding long-term debt
service.
Cable TV Fund — This fund is used to account for 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.
Police Expendable Gifts Fund — This fund is used to account for contributions given to the police
department to be spent for specific purposes.
Veteran's Memorial - This fund is used to account for contributions given to the Veteran's
Memorial for specific purposes and for maintainance.
124
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for 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 for the resources and costs related to
airport capital improvements.
Sales Tax Construction Fund — This fund is used to account for the resources and costs related to
capital improvements financed through the local option sales tax.
General Construction Fund — This fund is used to account for the resources and costs related to
general capital improvements.
Street Construction Fund — This fund is used to account for the resources and costs related to street
capital improvements.
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only earnings,
not principal, may be used for purposes that support 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 account for testamentary gifts to the City library.
125
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
Special Revenue Funds
Road
Use Section VIII Employee Special
Tax Housing Benefits Assessments
ASSETS
Cash and pooled cash investments $ 4,535,294 $ 458,748 $ 25,942 $
Receivables
Property tax
Delinquent - 26,233
Succeeding year - 3,422,700
Accounts and other 3,730 74,121 -
Special assessments
Accrued interest 1,434
Notes - -
Intergovernmental 594,972 4,617 -
Inventories 301,495 - -
Prepaid items 743 11,373 -
Restricted cash and pooled cash investments 200,556 -
775,390
Total Assets $ 5,436,234 $ 750,849 $ 3,474,875 $ 775,390
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 546,214 $ 176,023 $ $
Accrued payroll 58,680 23,441
Intergovernmental payable - 2,499
Total Liabilities 604,894 201,963
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - 3,422,700
Special assessments - 740,272
Grants -
Other 3,730 6,598
Total Deferred Inflows of Resources 3,730 - 3,429,298 740,272
FUND BALANCES
Nonspendable:
Endowment corpus - -
Inventory 301,495 - -
Prepaid items 743 11,373
Restricted:
Endowments
Library - -
Police - -
Veterans - -
Capital improvements 4,525,372 - -
Franchise agreement - -
Special assessments
Iowa Finance Authority Trust -
Community programs 537,513 -
Employee benefits - 45,577
Committed, capital improvements - -
Total Fund Balances
35,118
4,827,610 548,886
45,577 35,118
Total Liabilities, Deferred Inflows of Resources and
Fund Balances $ 5,436,234 $ 750,849 $ 3,474,875 $ 775,390
126
EXHIBIT A-1
Special Revenue Funds Capital Projects Funds
Library Police IFA
Expendable Expendable Veteran's Housing Airport General
Cable TV Gifts Trust Gifts Trust Memorial Trust Construction Construction
$ 499,375 $ 1,159,919 $ 7,026 $ 143,442 $ 301,481 $ 464,593 $ 2,211,874
144,940
1,786
3,230
19
266,377
1,294 542
17,522
78,555
7,947 - - -
- - - - 1,249,203 1,244,413
$ 654,048 $ 1,163,149 $ 7,045 $ 143,442 $ 567,858 $ 1,793,645 $ 3,474,351
$ 2,463 $ 1,610 $ $ $ 25,634 $ 88,205 $ 101,578
13,258 1,125
15,721 2,735 25,634 88,205 101,578
78,555
6,446
78,555 6,446
7,947
- 1,160,414 -
- - 7,045 - -
- - 143,442 -
- - - - 1,626,885 3,366,327
630,380 - - -
542,224
638,327 1,160,414 7,045 143,442 542,224 1,626,885 3,366,327
$ 654,048 $ 1,163,149 $ 7,045 $ 143,442 $ 567,858 $ 1,793,645 $ 3,474,351
(Continued)
127
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2019
EXHIBIT A-1 (CONTINUED)
Capital Projects Funds Permanent Funds
Total
Ella Lyons Library Nonmajor
Sales Tax Street Peony Trail Gifts Governmental
Construction Construction Trust Trust Funds
ASSETS
Cash and pooled cash investments $ 600,569 $ 2,145,905 $ - $ - $ 12,554,168
Receivables
Property tax
Delinquent - - 26,233
Succeeding year - - 3,422,700
Accounts and other 66,003 288,794
Special assessments - 775,390
Accrued interest 10,471 5,976 167 54 24,973
Notes 657,518 - - 941,417
Intergovernmental 142,011 1,454,579 - 2,274,734
Inventories - - 301,495
Prepaid items 340 - 20,403
Restricted cash and pooled cash investments 4,033,459 - 158,192 19,241 6,905,064
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
$ 5,444,028 $ 3,672,803 $ 158,359 $ 19,295 $ 27,535,371
LIABILITIES
Accounts payable $ 151,203 $ 822,817 $ $ $ 1,915,747
Accrued payroll 96,504
Intergovernmental payable - - 2,499
Total Liabilities 151,203 822,817 2,014,750
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - 3,422,700
Special assessments - 740,272
Grants 1,095,711 1,174,266
Other 4,190 20,964
Total Deferred Inflows of Resources 1,099,901 - 5,358,202
FUND BALANCES
Nonspendable:
Endowment corpus - 57,412 12,000 69,412
Inventory - - 301,495
Prepaid items 340 20,403
Restricted:
Endowments 100,947 7,295 108,242
Library - - 1,160,414
Police - - 7,045
Veterans - - 143,442
Capital improvements 4,033,459 - - 13,552,043
Franchise agreement - - 630,380
Special assessments 35,118
Iowa Finance Authority Trust 542,224
Community programs 537,513
Employee benefits - - 45,577
Committed, capital improvements 1,259,366 1,749,745 - 3,009,111
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
5,292,825 1,750,085
158,359 19,295 20,162,419
$ 5,444,028 $ 3,672,803 $ 158,359 $ 19,295 $ 27,535,371
128
THIS PAGE IS INTENTIONALLY LEFT BLANK
129
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
Special Revenue Funds
Road
Use Section VIII Employee Special
Tax Housing Benefits Assessments
REVENUES
Taxes $ $ $ 4,211,912 $
Special assessments - - 107,255
Intergovernmental 7,484,694 5,398,025
Charges for services - -
Investment earnings 11,607 35,348
Contributions 182 - -
Miscellaneous 36,509 45,626 4,618
Total Revenues 7,521,203 5,455,440 4,211,912 147,221
EXPENDITURES
Governmental activities
Current
Public safety
Public works 6,528,309
Culture and recreation - -
Community and economic development 5,614,840 -
General government 1,956 - 230
Debt service
Interest and fiscal charges 400
Capital projects 928,846
Total Expenditures 7,459,511 5,614,840 230
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 61,692 (159,400) 4,211,682 147,221
OTHER FINANCING SOURCES (USES)
Issuance of debt - -
Premium on bonds -
Transfers in 184,681
Transfers out (1,154,318) - (4,190,790) (140,253)
Insurance recovery - -
Sale of capital assets 43,306 - -
Total Other Financing Sources (Uses) (1,111,012) 184,681 (4,190,790) (140,253)
NET CHANGE IN FUND BALANCES (1,049,320) 25,281 20,892 6,968
FUND BALANCES, BEGINNING 5,876,930 523,605 24,685 28,150
FUND BALANCES, ENDING $ 4,827,610 $ 548,886 $ 45,577 $ 35,118
130
EXHIBIT A-2
Special Revenue Funds Capital Projects Funds
Library Police IFA
Expendable Expendable Veteran's Housing Airport General
Cable TV Gifts Trust Gifts Trust Memorial Trust Construction Construction
$ - $ - $ - $ - $ - $ - $
- 103,229 255,210 12,805
- 7,013 - - 226,267
11,998 26,782 167 2,848 25,052 24,190
- 467 4,200 14,220 - 11,656
579,059 105,084 - - 36,032
591,057 139,346 4,367 17,068 103,229 506,529 84,683
- 5,930
- 133,762 11,774 -
- - - 99,380
556,733 - - -
2,500
56,162
383,369 2,381,736
559,233 133,762 5,930 11,774 99,380 383,369 2,437,898
31,824 5,584
(1,563) 5,294
3,849 123,160 (2,353,215)
- 1,575,000
44,544
50,000 156,552 1,534,648
(202,034) (385,930)
- 728
- - 50,000 (45,482) 2,768,990
31,824 5,584 (1,563) 5,294 53,849 77,678 415,775
606,503 1,154,830 8,608 138,148 488,375 1,549,207 2,950,552
$ 638,327 $ 1,160,414 $ 7,045 $ 143,442 $ 542,224 $ 1,626,885 $ 3,366,327
(Continued)
131
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
EXHIBIT A-2 (CONTINUED)
Capital Projects Funds Permanent Funds
Total
Ella Lyons Library Nonmajor
Sales Tax Street Peony Trail Gifts Governmental
Construction Construction Trust Trust Funds
REVENUES
Taxes $ 1,788,022 $ 2,682,033 $ - $ - $ 8,681,967
Special assessments - 107,255
Intergovernmental 5,045,052 - - 18,299,015
Charges for services 20,655 - 253,935
Investment earnings 76,156 27,452 14,296 442 256,338
Contributions 270,625 46,365 - 347,715
Miscellaneous 7,856 21,576 - 64 836,424
Total Revenues 2,142,659 7,843,133 14,296 506 28,782,649
EXPENDITURES
Governmental activities
Current
Public safety 5,930
Public works - - 6,528,309
Culture and recreation - 1,811 147,347
Community and economic development - - 5,714,220
General government 558,919
Debt service
Interest and fiscal charges 39,473 612 99,147
Capital projects 1,677,588 7,927,510 - 13,299,049
Total Expenditures 1,717,061 7,928,122 1,811 26,352,921
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 425,598 (84,989) 12,485 506 2,429,728
OTHER FINANCING SOURCES (USES)
Issuance of debt 1,308,875 2,883,875
Premium on bonds 37,149 81,693
Transfers in 4,343 1,528,236 3,458,460
Transfers out (619,795) (296,201) - (6,989,321)
Insurance recovery 79,340 - 79,340
Sale of capital assets - - 44,034
Total Other Financing Sources (Uses) 730,572 1,311,375 - (441,919)
NET CHANGE IN FUND BALANCES 1,156,170 1,226,386 12,485 506 1,987,809
FUND BALANCES, BEGINNING 4,136,655 523,699 145,874 18,789 18,174,610
FUND BALANCES, ENDING $ 5,292,825 $ 1,750,085 $ 158,359 $ 19,295 $ 20,162,419
132
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 for the operations of the City's refuse
collection services.
Transit System Fund — This fund is used to account for the operations of the City's bus and other
transit services.
Salt Fund — This fund is used to account for 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.
133
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2019
EXHIBIT B-1
Refuse Transit
Collection System
ASSETS
Salt
Total Other
America's Enterprise
River Project Funds
CURRENT ASSETS
Cash and pooled cash investments $ 897,298 $ 782,017 $ 21,940 $ 365 $ 1,701,620
Receivables
Accounts 397,764 2,585 - 400,349
Intergovernmental 1,176,587 - 1,176,587
Prepaid items 12,169 - 12,169
Total Current Assets 1,295,062 1,973,358 21,940 365 3,290,725
NONCURRENT ASSETS
Capital assets
Land 36,000 - 36,000
Buildings 13,591,053 175,458 - 13,766,511
Improvements to other than buildings 796,092 686,312 1,482,404
Machinery and equipment 2,770,443 6,806,132 36,342 - 9,612,917
Accumulated depreciation (1,856,963) (6,717,068) (149,941) (8,723,972)
Net Capital Assets 913,480 14,512,209 748,171 16,173,860
Total Noncurrent Assets 913,480 14,512,209 748,171 16,173,860
Total Assets 2,208,542 16,485,567 770,111 365 19,464,585
DEFERRED OUTFLOWS OF
RESOURCES
Pension related deferred outflows
OPEB related deferred outflows
Total Deferred Outflows of Resources
LLABILITIES
241,473 353,407 - - 594,880
9,002 6,617 15,619
250,475 360,024 - - 610,499
CURRENT LIABILITIES
Accounts payable 23,034 63,582 - - 86,616
Accrued payroll 50,796 74,075 124,871
General obligation bonds payable 5,200 9,268 14,468
Accrued compensated absences 1,639 4,200 5,839
Accrued interest payable 2,141 710 - - 2,851
Total Current Liabilities 82,810 151,835 234,645
NONCURRENT LIABILITIES
General obligation bonds payable 67,209 299,987 - - 367,196
Accrued compensated absences 234,408 18,889 253,297
Net pension liability 920,551 1,347,266 2,267,817
Total OPEB liability 234,131 172,087 406,218
Total Noncurrent Liabilities 1,456,299 1,838,229 - - 3,294,528
Total Liabilities
1,539,109 1,990,064 - - 3,529,173
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 79,148 115,837 - - 194,985
NET POSITION
Net investment in capital assets 841,071 14,202,954 748,171 - 15,792,196
Unrestricted (311) 536,736 21,940 365 558,730
Total Net Position $ 840,760 $ 14,739,690 $ 770,111 $ 365 $ 16,350,926
134
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
EXHIBIT B-2
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain on disposal of assets
Net Nonoperating Revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
Refuse
Collection
Transit
System
America's
Salt River Project
Total Other
Enterprise
Funds
$ 4,350,067 $
1,361
4,351,428
450,077 $ 174,784 $
62,308 -
512,385
174,784
- $ 4,974,928
361 64,030
361 5,038,958
2,681,581
18,137
323,540
896,623
21,035
273,008
2,329,870
75,006
640,405
556,239
46,039
882,402
939
153,514
27,639
- 5,011,451
93,143
964,884
19,874 1,626,250
- 67,074
1,183,049
4,213,924
4,529,961
182,092
19,874 8,945,851
137,504
21,162
(1,957)
(4,017,576)
1,716,731
84,280
(3,099)
70,000
(7,308) (19,513) (3,906,893)
5
1,716,731
21,167
84,280
(5,056)
70,000
19,205
1,867,912
5
1,887,122
156,709
(2,149,664)
1,718,006
(21)
(7,303) (19,513) (2,019,771)
19,874 1,737,880
(21)
156,709
684,051
(431,679) (7,303)
15,171,369 777,414
361 (281,912)
4 16,632,838
$ 840,760
$ 14,739,690 $ 770,111 $
365 $ 16,350,926
135
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from issuance of debt
Premium on debt issuance
Acquisition and construction of capital assets
Proceeds from sale of capital assets
Principal Paid
Interest paid
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND POOLED
INVESTMENTS
CASH AND POOLED INVESTMENTS, BEGINNING
CASH AND POOLED INVESTMENTS, ENDING
Refuse
Collection
$ 4,356,805
(1,243,761)
(2,699,857)
1,361
414,548
America's Total Other
Transit River Enterprise
System Salt Project Funds
$ 450,389
(1,341,767)
(2,379,943)
62,308
$ 174,784 $ - $ 4,981,978
(154,453) (19,874) (2,759,855)
(5,079,800)
361 64,030
(3,209,013) 20,331 (19,513) (2,793,647)
1,718,006
(21)
84,280
1,645,638
3,447,903
19,874
19,874
1,737,880
(21)
84,280
1,645,638
3,467,777
(450,302)
(5,158)
(2,119)
(457,579)
23,207
216,125
6,112
(43,761)
70,000
(9,268)
(2,731)
236,477
9
216,125
6,112
(494,063)
70,000
(14,426)
(4,850)
(221,102)
23,216
(19,824) 475,367 20,340 361 476,244
917,122 306,650 1,600 4 1,225,376
$ 897,298 782,017 $ 21,940 $ 365 $ 1,701,620
136
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2019
EXHIBIT B-3
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)
Business -type Activities - Enterprise Funds
America's Total Other
Refuse River Enterprise
Collection Transit Salt Project Funds
$ 137,504 $ (4,017,576) $ (7,308) $ (19,513) $ (3,906,893)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 273,008 882,402 27,639 1,183,049
Change in assets and liabilities
Decrease in receivables 6,738 312 - 7,050
(Increase) in inventories and prepaid items (791) (791)
Increase (Decrease) in accounts payable 15,574 (23,287) - (7,713)
(Decrease) in accrued liabilities (3,966) (5,210) (9,176)
(Decrease) in net pension liability (64,792) (243,489) - (308,281)
Decrease in deferred outflows 36,469 96,609 133,078
Increase in deferred inflows 25,124 28,619 - 53,743
Increase (Decrease) in total OPEB liability (11,111) 73,398 62,287
Total Adjustments 277,044 808,563 27,639 1,113,246
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 414,548 $ (3,209,013) $ 20,331 $ (19,513) $ (2,793,647)
137
THIS PAGE IS INTENTIONALLY LEFT BLANK
138
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government 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 for the
City's automotive equipment.
Stores/Printing Fund - This fund is used to account for printing, supplies, and other services
provided to other departments.
Health Insurance Reserve Fund - This fund is used to account for health insurance costs.
Workers' Compensation Reserve Fund - This fund is used to account for workers' compensation
costs.
139
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2019
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ $ 448,010 $ 633
Receivables
Accounts
Accrued interest
Inventories 66,492 9,582
Total Current Assets 514,502 10,215
NONCURRENT ASSETS
Capital assets
Machinery and equipment 356,590
Accumulated depreciation (222,266)
Net Capital Assets 134,324
Total Noncurrent Assets - 134,324
Total Assets 648,826 10,215
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
LIABILITIES
241,214 141,617
CURRENT LIABILITIES
Accounts payable 78,073 7,432
Accrued payroll 27,923
Total Current Liabilities 105,996 7,432
NONCURRENT LIABILITIES
Net pension liability 919,569 539,883
Total Noncurrent Liabilities 919,569 539,883
Total Liabilities
919,569 645,879 7,432
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 79,064 46,418
NET POSITION
Net investment in capital assets 134,324
Unrestricted (757,419) (36,178) 2,783
Total Net Position (Deficit) $ (757,419) $ 98,146 $ 2,783
140
EXHIBIT C-1
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 5,526,163 $ 1,611,073 $ 7,585,879
227,889 227,889
15,390 4,487 19,877
76,074
5,769,442
1,615,560 7,909,719
356,590
(222,266)
134,324
- 134,324
5,769,442
1,615,560 8,044,043
382,831
975,946 1,023,090 2,084,541
27,923
975,946
1,023,090 2,112,464
- 1,459,452
1,459,452
975,946
1,023,090 3,571,916
- 125,482
134,324
4,793,496 592,470 4,595,152
$ 4,793,496 $ 592,470 $ 4,729,476
141
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2019
OPERATING REVENUES
Charges for sales and services
Other
General Garage Stores/
Service Service Printing
$ 1,420,518 $ 2,321,484 $ 555,623
33,074
Total Operating Revenues 1,420,518 2,354,558 555,623
OPERATING EXPENSES
Employee expense 1,296,453 1,005,687
Utilities 26,191 7,089
Repairs and maintenance 96,731
Supplies and services - 1,095,232 548,960
Insurance 15,568
Depreciation 40,781
Total Operating Expenses 1,296,453 2,280,190 556,049
OPERATING INCOME (LOSS) 124,065 74,368 (426)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - 173
Investment earnings -
Gain on disposal of assets 5,055
CHANGE IN NET POSITION 124,065 79,596 (426)
NET POSITION (DEFICIT), BEGINNING (881,484) 18,550 3,209
NET POSITION (DEFICIT), ENDING $ (757,419) $ 98,146 $ 2,783
142
EXHIBIT C-2
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 10,542,427 $ 907,865 $ 15,747,917
5,654 29,796 68,524
10,548,081 93 7, 661 15,816,441
2,302,140
33,280
96,731
9,637,510 693,551 11,975,253
59,850 75,418
40,781
9,637,510
753,401 14,523,603
910,571 184,260 1,292,838
118,748
173
37,882 156,630
5,055
1,029,319 222,142 1,454,696
3,764,177 370,328 3,274,780
$ 4,793,496 $ 592,470 $ 4,729,476
143
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Payments of interfund balances
NET CASH (USED FOR) NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Acquisition and construction of capital assets
Intergovernmental grant proceeds
Proceeds from sale of capital assets
NET CASH (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
POOLED INVESTMENTS
CASH AND POOLED INVESTMENTS, BEGINNING
CASH AND POOLED INVESTMENTS, ENDING
General
Service
Garage
Service
$ 1,420,518 $
(1,392,720)
27,798
(27,798)
(27,798)
Stores/
Printing
2,321,484 $
(1,218,045)
(1,010,466)
33,074
126,047
(16,600)
173
5,055
(11,372)
114,675
333,335
555,623
(557,942)
(2,319)
(2,319)
2,952
$ 448,010 $
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income $ 124,065 $
Adjustments to reconcile operating income to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) in receivables
(Increase) Decrease in inventories and prepaid items
Increase in accounts payable
(Decrease) in net pension liability
Decrease in deferred outflows
Increase in deferred inflows
(Decrease) in accrued liabilities
Total Adjustments
(188,282)
73,692
18,323
(96,267)
633
74,368 $
40,781
(3,569)
19,246
(42,214)
23,843
14,503
(911)
51,679
(426)
(4,147)
2,254
(1,893)
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 27,798 $ 126,047 $ (2,319)
144
EXHIBIT C-3
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 10,477,274 $ 907,865 $ 15,682,764
(9,161,398) (712,760) (11,650,145)
(2,403,186)
5,654 29,796 68,524
1,321,530
112,483
1,434,013
4,092,150
224,901 1,697,957
(27,798)
(27,798)
(16,600)
173
5,055
(11,372)
36,405 148,888
261,306 1,807,675
1,349,767 5,778,204
$ 5,526,163 $ 1,611,073 $ 7,585,879
$ 910,571 $ 184,260 $ 1,292,838
40,781
(65,153) (65,153)
14,238 6,522
476,112 26,403 524,015
(230,496)
97,535
32,826
(911)
410,959 40,641 405,119
$ 1,321,530 $ 224,901 $ 1,697,957
145
THIS PAGE IS INTENTIONALLY LEFT BLANK
146
AGENCY FUNDS
The agency fund is used to report 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 for the resources held for
improvements at the greyhound racing facility.
Flexsteel Decomission Fund —This fund is used to account for the resources held for the
decomissioning of the prior Flexsteel site.
147
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED JUNE 30, 2019
EXHIBIT D-1
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 650,012 $ 201,308 $ 103,896 $ 747,424
Prepaids 21,246 12,054 21,246 12,054
Accounts receivable 49,207 50,729 49,207 50,729
Total Assets $ 720,465 $ 264,091 $ 174,349 $ 810,207
LIABILITIES
Due to other agency $ 720,465 $ 264,091 $ 174,349 $ 810,207
Total Liabilities $ 720,465 $ 264,091 $ 174,349 $ 810,207
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 945,469 $ 142,306 $ 75,046 $ 1,012,729
Accrued interest 2,108 2,820 2,108 2,820
Total Assets $ 947,577 $ 145,126 $ 77,154 $ 1,015,549
LIABILITIES
Due to other agency
$ 947,577 $ 145,126 $ 77,154 $ 1,015,549
FLEXSTEEL DECOMISSION FUND
ASSETS
Cash and pooled cash investments $ 665,839 $ 300,000 $ - $ 965,839
Notes receivable 2,000,000 - 300,000 1,700,000
Total Assets $ 2,665,839 $ 300,000 $ 300,000 $ 2,665,839
LIABILITIES
Due to other agency $ 2,665,839 $
Total Liabilities $ 2,665,839 $
$
$ 2,665,839
$ 2,665,839
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments $ 2,261,320 $ 643,614 $ 178,942 $ 2,725,992
Prepaids 21,246 12,054 21,246 12,054
Accounts receivable 49,207 50,729 49,207 50,729
Notes receivable 2,000,000 300,000 1,700,000
Accrued interest 2,108 2,820 2,108 2,820
Total Assets $ 4,333,881 $ 709,217 $ 551,503 $ 4,491,595
LIABILITIES
Due to other agency 4,333,881 409,217 251,503 4,491,595
Total Liabilities $ 4,333,881 $ 409,217 $ 251,503 $ 4,491,595
148
Statistical Section (Unaudited)
June 30, 2019
City of Dubuque, Iowa
149
THIS PAGE IS INTENTIONALLY LEFT BLANK
150
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 information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax.
Debt Capacity
These schedules present information 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.
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.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City
provides and the activities it performs.
150
160
164
175
178
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
151
CITY OF DUBUQUE, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2010 2011 2012 2013 2014
Govemmental activities
Net investment in capital assets $ 309,126,684 $ 329,416,245 $ 347,890,769 $ 342,046,442 $ 354,732,451
Restricted 26,064,318 23,738,199 26,180,100 23,491,207 21,501,638
Unrestricted (11,256,312) (4,891,381) (16,876,988) (8,361,688) (18,151,279)
Total governmental activities net position $ 323,934,690 $ 348,263,063 $ 357,193,881 $ 357,175,961 $ 358,082,810
Business -type activities
Net investment in capital assets $ 124,805,513 $ 135,026,753 $ 132,237,734 $ 138,498,777 $ 138,842,390
Restricted 129,642 893,519 957,802 6,011,848 5,315,519
Unrestricted 11,679,961 2,603,799 10,665,596 (641,384) (593,202)
Total business -type activities net position $ 136,615,116 $ 138,524,071 $ 143,861,132 $ 143,869,241 $ 143,564,707
Primary govemment
Net investment in capital assets $ 433,932,197 $ 464,442,998 $ 480,128,503 $ 480,545,219 $ 493,574,841
Restricted 26,193,960 24,631,718 27,137,902 29,503,055 26,817,157
Unrestricted 423,649 (2,287,582) (6,211,392) 9,003,072 (18,744,481)
Total primary government net positions $ 460,549,806 $ 486,787,134 $ 501,055,013 $ 501,045,202 $ 501,647,517
152
TABLE 1
Year
2015 2016 2017 2018 2019
$ 348,173,267 $ 369,244,904 $ 375,578,520 $ 379,040,697 $ 385,005,220
22,047,405 21,473,309 23,955,112 27,269,997 28,321,603
(49,579,334) (47,166,839) (43,921,629) (41,853,174) (36,682,314)
$ 320,641,338 $ 343,551,374 $ 355,612,003 $ 364,457,520 $ 376,644,509
$ 148,487,126 $ 161,326,743 $ 164,448,390 $ 168,205,523 $ 179,561,228
7,796,668 4,254,907 3,796,752 3,053,616 3,131,716
(4,568,933) (7,339,071) 3,876,760 10,696,792 12,617,567
$ 151,714,861 $ 158,242,579 $ 172,121,902 $ 181,955,931 $ 195,310,511
$ 496,660,393 $ 530,571,647 $ 540,026,910 $ 547,246,220 $ 564,566,448
29,844,073 25,728,216 27,751,864 30,323,613 31,453,319
(54,148,267) (54,505,910) (40,044,869) (31,156,382) (24,064,747)
$ 472,356,199 $ 501,793,953 $ 527,733,905 $ 546,413,451 $ 571,955,020
153
CITY OF DUBUQUE, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Expenses
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services
Public safety
Public works
Culture and recreation
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Fiscal -
2010
$ 22,067,988
22,121,629
852,099
11,446,084
15,422,099
7,963,016
3,101,897
82,974,812
6,631,326
6,093,827
2,213,144
4,003,776
423,158
2,703,887
2,832,066
2011
$ 23,759,068
18,978,423
1,072,347
10,911,733
12,890,841
9,052,704
3,294,951
79,960,067
7,899,011
6,523,993
2,811,321
4,775,834
180,086
2,828,891
2,947,958
671,647
2012
$ 26,326,367
22,917,747
913,954
12,749,558
22,030,950
6,133,983
3,294,912
94,367,471
9,718,669
7,410,710
2,750,767
3,152,055
22,787
3,173,075
3,629,750
661,395
24,901,184 28,638,741 30,519,208
$ 107,875,996 $ 108,598,808 $ 124,886,679
2,348,064
4,046,583
2,192,886
2,412,880
20,830,113
10,748,522
42,579,048
5,893,730
5,326,202
2,282,625
2,399,843
7,000
2,893,017
273,433
1,652,277
3,800,582
24,528,709
2,579,573
5,331,667
2,108,177
2,530,234
14,204,627
23,482,866
50,237,144
6,643,974
5,638,277
2,993,539
2,750,610
3,082,197
193,236
773,258
2,773,933
6,536,527
31,385,551
$ 67,107,757 $ 81,622,695
2,915,562
5,178,439
2,321,553
2,873,298
23,013,997
16,560,811
52,863,660
7,827,281
6,037,073
3,180,134
2,908,989
3,257,960
278,835
665,942
1,579,493
5,323,486
31,059,193
$ 83,922,853
2013
2014
$ 28,292,481 $ 27,578,517
21,607,536 21,306,882
716,970 1,055,398
13,647,178 13,696,331
17,388,720 14,591,257
6,248,483 9,610,084
4,049,640 3,684,993
91,951,008 91,523,462
9,375,748
6,817,772
3,347,304
3,586,405
22,770
3,468,859
3,492,095
346,066
11,481,103
8,812,340
3,431,096
3,732,492
33,579
3,750,366
3,847,320
56,468
30,457,019
35,144,764
$ 122,408,027 $ 126,668,226
2,495,737
4,472,479
2,488,844
3,264,979
13,995,316
10,791,945
2,624,455
5,829,293
2,321,265
3,921,256
12,784,907
12,162,649
37,509,300
39,643,825
8,924,785
6,922,582
3,192,256
2,883,865
3,346,795
307,314
395,000
2,264,695
1,240,583
10,025,673
7,248,790
3,224,504
2,920,148
3,700,922
275,907
45,600
1,717,208
2,920,942
29,477,875 32,079,694
$ 66,987,175 $ 71,723,519
TABLE 2
Year
2015 2016 2017 2018 2019
$ 25,525,937
19,207,837
928,968
13,002,690
18,064,831
6,420,173
3,903,667
$ 26,851,624 $ 30,020,343
24,323,023 19,608,137
967,936 815,251
12,993,331 13,653,509
15,464,781 18,096,170
4,101,423 8,982,668
2,963,134 3,467,685
87,054,103 87,665,252 94,643,763
12,019,866
7,800,393
4,131,562
3,383,419
24,000
3,740,404
4,245,823
244,691
35,590,158
$ 122,644,261
2,532,114
6,092,356
2,547,843
3,493,143
11,992,439
9,704,043
36,361,938
10,582,662
7,463,430
3,490,040
3,036,214
3,783,493
397,545
232,271
1,866,535
10,020,715
40,872,905
12,817,669
6,483,229
5,021,523
3,420,296
21,521
3,968,761
4,274,967
181,617
36,189,583
$ 123,854,835
11,326,661
6,807,217
6,234,015
3,547,856
22,893
4,208,268
4,237,054
45,039
36,429,003
$ 131,072,766
2,713,065 2,930,068
5,765,075 5,681,107
2,723,270 2,767,636
3,887,056 3,541,205
15,301,219 15,028,527
18,667,619 13,360,280
49,057,304 43,308,823
12,158,439
8,406,928
3,754,148
3,247,383
1,605
3,857,340
463,688
81,720
1,648,077
7,607,721
12,442,584
8,553,225
4,076,396
3,286,947
4
4,185,051
459,258
86,887
1,700,171
14,160,820
41,227,049 48,951,343
$ 77,234,843 $ 90,284,353
$ 92,260,166
$ 29,482,962
20,393,871
883,217
14,323,710
21,109,384
7,573,081
3,129,502
$ 29,637,417
24,835,035
1,442,658
12,916,646
15,837,039
5,944,116
3,387,730
96,895,727 94,000,641
11,614,347
7,109,421
6,159,039
2,866,510
10,143
4,244,551
4,722,979
119,421
36,846,411
$ 133,742,138
2,600,751
6,654,101
2,874,493
5,864,541
21,569,356
7,779,713
12,177,352
7,892,423
7,025,525
2,850,531
19,874
4,215,881
4,533,060
182,092
38,896,738
$ 132,897,379
2,535,504
7,327,692
2,459,644
3,815,321
23,198,271
11,048,200
47,342,955 50,384,632
12,659,662
8,906,136
4,367,963
3,034,744
4
4,232,542
465,550
96,273
1,648,403
5,705,262
12,479,684
8,959,023
4,714,670
3,066,118
4,351,428
512,385
174,784
1,917,366
6,215,459
41,116,539 42,390,917
$ 88,459,494
$ 92,775,549
(Continued)
155
CITY OF DUBUQUE, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues and Other Changes in Net
Position
Governmental activities:
General Revenues
Property taxes
Local option sales tax
Hotel/motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Gain on sale of capital assets
Other
Transfers
Total governmental activities
Business -type activities:
General Revenues
Unrestricted investment earnings
Gain on sale of capital assets
Extraordinary item
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Fiscal -
2010
2011
$ (40,395,764) $ (29,722,923)
(372,475)
2,746,810
$ (40,768,239) $ (26,976,113)
$ 24,876,073
8,112,471
1,678,806
1,591,712
8,209,761
1,339,709
880,930
(3,104,762)
43,584,700
$ 28,249,114
7,929,761
1,826,809
2,488,858
13,327,223
668,363
149,937
622,494
(1,211,263)
54,051,296
2012
$ (41,503,811)
539,985
$ (40,963,826)
$ 30,816,614
8,459,888
1,903,944
2,272,481
8,785,453
1,529,149
1,417,048
(4,749,948)
50,434,629
2013
2014
$ (54,441,708) $ (51,879,637)
(979,144)
(3,065,070)
$ (55,420,852) $ (54,944,707)
$ 32,668,554
8,764,787
1,953,763
2,568,347
8,452,298
201,153
907,122
(1,092,236)
$ 33,264,283
8,211,366
2,006,514
2,609,421
7,878,008
777,958
483,782
(2,444,846)
54,423,788
52,786,486
294,562 184,581 206,672 65,321 135,461
23,699 19,337 84,178 384,697 180,229
- (2,253,036) (243,722) (555,031) -
3,104,762 1,211,263 4,749,948 1,092,236 2,444,846
3,423,023 (837,855) 4,797,076 987,253 2,760,536
$ 47,007,723 $ 53,213,441 $ 55,231,705 $ 55,411,041 $ 55,547,022
$ 3,188,936
3,050,548
$ 24,328,373
1,908,955
$ 6,239,484 $ 26,237,328
$ 8,930,818
5,337,061
$ 14,267,879
$ (17,920)
8,109
$ 906,849
(304,534)
$ (9,811)
$ 602,315
156
TABLE 2
(continued)
Year
2015 2016 2017 2018 2019
$ (50,692,165)
5,282,747
$ (38,607,948)
5,037,466
$ (45,409,418) $ (33,570,482)
$ 36,277,719
8,760,246
2,623,551
2,828,688
7,397,709
668,134
19,495
(7,288,593)
51,286,949
185,356
6,571
7,288,593
$ 36,518,506
9,155,411
2,128,042
4,360,107
8,440,161
1,082,165
813,492
(979,900)
61,517,984
407,528
102,824
979,900
$ (51,334,940)
12,522,340
$ (49,552,772)
4,270,124
$ (43,616,009)
3,494,540
$ (38,812,600) $ (45,282,648) $ (40,121,469)
$ 39,678,473
8,890,046
2,821,745
4,558,847
8,098,324
335,577
83,720
(1,071,163)
63,395,569
231,746
54,074
1,071,163
7,480,520 1,490,252 1,356,983
$ 39,632,246
8,610,948
2,286,469
4,832,958
8,062,251
688,769
309,857
$ 37,973,888
8,940,109
2,113,273
5,072,350
8,730,986
1,858,476
94,980
(5,423,015) (8,981,064)
59,000,483 55,802,998
268,283 798,497
4,680 80,479
5,423,015 8,981,064
5,695,978 9,860,040
$ 58,767,469 $ 63,008,236 $ 64,752,552 $ 64,696,461 $ 65,663,038
$ 594,784
12,763,267
$ 22,910,036
6,527,718
$ 12,060,629
13,879,323
$ 9,447,711
9,966,102
$ 12,186,989
13,354,580
$ 13,358,051 $ 29,437,754 $ 25,939,952 $ 19,413,813 $ 25,541,569
157
CITY OF DUBUQUE, IOWA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2010 2011* 2012 2013 2014
General Fund
Reserved $ 5,199,760 $ $ - $ -
Unreserved 8,622,705 -
Nonspendable 868,631 5,613,359 6,646,278 6,549,063
Restricted -
Assigned 8,904,490 5,549,803 3,434,440 1,904,805
Unassigned 6,139,306 9,371,016 8,806,171 7,356,066
Total general fund $ 13,822,465 $ 15,912,427 $ 20,534,178 $ 18,886,889 $ 15,809,934
All Other Governmental Funds
Reserved $ 24,404,656 $ $ $
Unreserved, reported in:
Special revenue funds 4,011,022
Debt service fund
Capital projects funds (989,025)
Permanent funds 33,273 -
Nonspendable 10,320,305 10,975,468 9,092,520 8,640,780
Restricted 18,010,570 31,362,126 30,738,046 23,620,615
Committed 5,203,472 5,843,671 10,827,172 10,548,592
Unassigned (377,363) (429,344) - -
Total all other governmental funds $ 27,459,926 $ 33,156,984 $ 47,751,921 $ 50,657,738 $ 42,809,987
*Classification changed in 2011 due to adoption of GASB 54.
158
TABLE 3
Year
2015 2016 2017 2018 2019
6,082,043 6,049,052 5,585,672 5,414,922 5,369,478
2,208 - 229,995
647,772 1,015,935 1,590,065 1,267,250 1,438,616
8,693,524 10,908,497 12,582,596 15,193,241 19,276,479
$
$ 15,423,339 $ 17,973,484 $ 19,760,541 21,875,413 $ 26,314,568
1,183,423 553,292 944,856 415,271 406,813
30,496,183 27,450,187 28,103,397 30,347,598 34,367,024
12,298,896 7,635,502 6,592,154 4,660,158 3,009,111
- - - (2,021,937) (1,185,047)
$ 43,978,502 $ 35,638,981 $ 35,640,407 33,401,090 $ 36,597,901
159
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Contributions
Gaming
Miscellaneous
Total revenues
Expenditures
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Principal
Interest
Capital projects
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of bonds
Discount on bonds
Premiums on bonds
Issuance of refunding bonds
Payment to refunded bonds escrow agent
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
Fiscal -
2010
$ 36,252,156
318,178
1,115,472
27,310,624
8,063,284
224,601
1,348,615
2,333,995
8,209,761
2,111,834
87,288,520
2011
$ 40,428,894
232,535
1,170,922
26,171,082
8,723,086
454,117
654,587
1,297,621
13,327,223
2,075,262
94,535,329
2012
$ 43,443,669
596,138
1,570,022
37,574,783
9,296,329
525,389
1,511,437
1,578,376
8,785,453
1,319,558
106,201,154
21,979,729 23,950,386 24,476,772
19,251,625 14,429,415 12,385,929
813,609 1,040,114 828,837
14,909,517 11,279,951 10,873,474
14,654,816 12,361,176 22,237,140
6,368,308 7,686,929 6,335,947
2,651,765 2,820,371 3,224,680
3,145,735 3,321,157 3,220,546
14,831,118 15,102,893 23,459,891
98,606,222 91,992,392 107,043,216
(11,317,702)
4,722,176
(31,990)
554,796
8,885,000
(9,405,000)
7,993,297
(10,562,137)
62,610
2,218,752
$ (9,098,950)
7.74%
2,542,937
6,996,722
(39,547)
1,642
705,000
(690,000)
15,850,523
(18,961,892)
628,482
753,153
5,244,083
(842,062)
27,215,363
(71,689)
123,990
8,773,387
(18,336,603)
132,425
2,221,877
20,058,750
S 7,787,020 $ 19,216,688
8.49%
7.65%
2013
2014
$ 45,440,973
175,486
1,271,771
26,580,831
8,952,179
484,128
180,016
370,154
8,452,298
1,315,915
$ 46,034,361
154,692
1,136,941
23,050,052
10,264,257
455,219
756,809
678,561
7,878,008
1,705,275
93,223,751 92,114,175
26,506,714
13,416,108
680,466
11,218,019
18,678,496
5,035,108
3,182,240
3,991,115
16,636,698
27,644,190
13,942,772
1,049,194
12,351,497
14,420,980
5,898,293
4,595,808
3,650,694
18,779,651
99,344,964 102,333,079
(6,121,213) (10,218,904)
6,577,268
4,949,148
(4,949,148)
15,295,630
(16,981,203)
49,209
2,438,837
15,862,516
(17,294,762)
59,796
666,648
7,379,741
(705,802)
1,258,528 S (10,924,706)
8.57% 9.51%
160
TABLE 4
Year
2015 2016 2017 2018 2019
$ 50,490,204
85,501
1,198,420
20,828,524
10,711,243
362,661
668,134
789,268
7,397,709
1,466,542
93,998,206
27,570,773
11,200,427
939,172
12,300,454
16,418,909
5,977,605
4,910,735
3,577,829
14,829,037
97,724,941
$ 51,580,084 $ 55,949,111
111,193 261,233
1,480,643 1,505,564
29,302,824 26,314,297
10,919, 854 10, 816,025
421,925 484,687
1,082,165 335,577
1,440,405 689,237
8,440,161 8,098,324
1,367,875 1,811,681
106,147,129 106,265,736
28,036,551 29,155,128
14,597, 823 11,728,716
1,015,987 868,280
11,909,029 12,397,294
13,473,413 16,474,553
6,436,114 7,287,586
10,302,412 17,615,698
3,707,268 3,579,807
31,504,5 81 16,260,851
120,983,178 115,367,913
$ 55,362,621
122,968
1,642,498
27,229,554
11,559,017
407,322
688,769
816,922
8,062,251
1,589,072
107,480,994
28,581,466
11,687,309
854,045
12,776,591
20,350,200
6,755,479
7,989,850
3,274,200
17,402,848
$ 54,101,901
113,178
1,619,892
31,359,695
12,476,036
404,400
1,701,846
1,343,916
8,708,702
1,526,804
113,356,370
28,807,920
12,851,393
1,046,184
13,037,048
15,730,191
6,571,094
5,509,605
3,320,911
20,145,054
109,671,988 107,019,400
(3,726,735) (14,836,049) (9,102,177) (2,190,994) 6,336,970
11,137,321
72,852
18,073,553
(25,241,795)
106,288
360,436
3,933,882
292,521
4,650,000
17,397,007
(18,376,907)
86,359
1,063,814
4,508,655 9,046,676
$ 781,920 S (5,789,373)
230,000
319,384
11,023,700
18,814,586
(19,917,219)
41,345
378,861
10,890,657
$ 1,788,480
110,000
16,915
1,778,325
18,889,096
(20,980,391)
98,058
2,154,546
2,883,875
81,693
17,025,952
(18,876,402)
87,843
96,035
2,066,549 1,298,996
$ (124,445)
$ 7,635,966
9.97% 15.17% 20.94% 11.96% 9.84%
161
CITY OF DUBUQUE, IOWA
TAXABLE 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 Taxable Assessed Real Taxable Assessed Assessed Total Direct
Year Year Value Value Property Value Value Value Tax Rate
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 64.20 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
2016 2018 2,686,813 3,931,498 7,783 2,679,030 3,931,498 68.14 10.89220
2017 2019 2,765,470 4,141,732 7,921 2,757,549 4,141,732 66.58 10.59725
Source: Dubuque County Assessor's and Auditor's Offices
Ok
162
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER $1,000 ASSESSED VALUE
TABLE 6
Dubuque Board of Ratio of
Levy Fiscal Dubuque School Education and Area 1 Dubuque Dubuque
Year Year City District Independents Voc. Tech County Total City to Total
2008 2010 $ 9.85777 $ 16.87918 $ 0.57970 $ 0.99471 $ 6.40435 $ 34.71571 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 29.38
2011 2013 10.78477 15.40388 0.71653 0.98407 6.43124 34.32049 31.42
2012 2014 11.02586 14.60281 0.75274 0.90455 6.43124 33.71720 32.70
2013 2015 11.02588 13.99630 0.66355 0.90807 6.43124 33.02504 33.39
2014 2016 11.02590 14.05629 0.63899 0.91036 6.38779 33.01933 33.39
2015 2017 11.16739 14.97697 0.63146 0.93757 6.29673 34.01012 32.84
2016 2018 10.89220 14.95665 0.62780 1.09993 6.34143 33.91801 32.17
2017 2019 10.58844 14.59791 0.65204 1.09993 5.97760 32.91592 32.11
Separate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
Year Year General Transit Insurance Benefits Service Total
2008 2010 $ 8.10000 $ 0.60000 $ 0.21492 $ 0.90583 $ 0.03702 $ 9.85777
2009 2011 8.10000 0.54469 0.20531 1.12441 0.05300 10.02741
2010 2012 8.10000 0.35273 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 0.38382 0.16288 2.33093 0.04823 11.02586
2013 2015 8.10000 0.48268 0.16595 2.23209 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 2.30637 0.11400 11.16739
2016 2018 8.10000 0.66319 0.15561 1.89350 0.07990 10.89220
2017 2019 8.10000 0.62877 0.13933 1.62026 0.10008 10.58844
Source: Dubuque County Auditor's Office.
163
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
TABLE 7
2019 2010
Percentage of Percentage of
Total City Total City
Taxable Taxable Taxable Taxable
Taxpayer Value Rank Value Value Rank Value
Peninsula Gaming Company LLC $ 63,779 1 2.31 % $ 56,784 1 2.79 %
Kennedy Mall Inc. 38,960 2 1.41 31,133 2 1.53
Progressive Processing LLC (Hormel) 25,375 3 0.92
Walter Development LLC 25,067 4 0.91
GRDT Investments LLC (Queck) 24,488 5 0.89
MAR Holdings LLC (Medical Assoc.) 21,343 6 0.77 19,157 3 0.94
Nordstrom, Inc. 14,800 7 0.54 16,884 5 0.83
Platinum Holdings LLC 13,500 8 0.49 11,179 7 0.55
McGraw Hill Global Education LLC 13,500 9 0.49 14,440 6 0.71
Flexsteel Industries Inc. 13,304 10 0.48
Lexington Dubuque LLC 9,844 10 0.48
Otto A LLC 17,500 4 0.86
Asbury Dubuque LLC 9,925 9 0.49
Minglewood Limiited Partnership 9,948 8 0.49
$ 254,116 9.21 % $ 196,794 9.67 %
Source: Dubuque County Auditor's Office
164
CITY OF DUBUQUE, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS )
TABLE 8
Total Percent of Total Tax Ratio of
Tax Current Current Delinquent Total Tax Collections Outstanding Delinquent
Fiscal Levy Levy Tax Taxes Tax Collections to Total Delinquent Taxes to Total
Year Year (1) Collections Collected Collections (2) Tax Levy Taxes Tax Levy
2010 2009 $ 19,124 $ 19,117 99.9 % $ (10) $ 19,107 99.9 % $ 202 1.06
2011 2010 19,906 19,793 99.4 13 19,806 99.5 276 1.39
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 99.7 8 23,923 99.7 211 0.88
2015 2014 24,866 24,715 99.4 7 24,722 99.4 362 1.46
2016 2015 24,944 24,889 100.0 84 24,973 100.0 288 1.15
2017 2016 26,435 26,318 99.6 2 26,320 99.6 354 1.34
2018 2017 25,924 26,026 100 1 26,027 100.4 199 0.77
2019 2018 26,556 26,442 99.6 4 26,446 99.6 202 0.76
(1) Excludes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
165
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Year
Governmental
Activities
General
Obligation
Bonds
2010 $ 27,887,864
2011 32,561,048
2012 53,087,811
2013 56,517,165
2014 52,568,648
2015 59,614,941
2016 58,869,812
2017 53,800,719
2018 48,833,498
2019 46,917,828
Tax Increment
Financing
Bonds
$ 24,449,674
23,037,222
22,258,283
21,920,537
21,556,435
21,165,946
20,764,818
20,333,690
19,867,562
19,366,434
Tax Increment
Financing
Notes
Other Loans
Payable
Business -
General
Obligation
Bonds
$ 1,049,696 $ 282,857 $ 23,957,802
1,931,348 282,857 25,254,652
1,767,664 4,735,714 35,108,003
1,235,903 5,638,871 34,921,131
1,030,036 5,541,428 32,738,862
811,608 5,444,285 45,868,394
625,429 5,347,142 46,806,473
451,763 4,650,000 44,487,023
255,881 4,067,700 41,979,910
176,054 3,984,110 39,246,005
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
166
TABLE 9
Type Activities
Capital Other Total Percentage of
Loan Revenue Loans Primary Personal Per
Notes Bonds Payable Government Income (1) Capita (1)
$ 8,289,621 $ 1,115,430 $ 371,978 $ 87,404,922 3.9 % $ 1,515
33,195,408 6,777,793 2,252,109 125,292,437 5.1 2,174
61,957,749 6,521,188 331,235 185,767,647 7.1 3,223
75,415,431 6,260,299 309,304 202,218,641 7.8 3,508
82,924,949 14,151,437 286,263 210,798,058 8.1 3,657
85,477,970 34,543,432 262,055 253,188,631 10.0 4,393
104,156,549 34,196,999 236,623 271,003,845 9.9 4,637
110,513,944 33,840,566 5,209,900 273,287,605 10.1 4,648
112,765,210 33,474,133 4,181,826 265,425,720 9.1 4,555
111,655,589 33,097,700 3,152,331 257,596,051 * 4,555
167
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
TABLE 10
Percentage of Percentage of
General Taxable Taxable Assessed Assessed
Fiscal Obligation Value of Value of Value of Value of Per
Year Bonds Property Property Property Property Capita
2010 $ 51,846 $ 2,023,899 2.56 % $ 3,239,112 1.60 % $ 899
2011 57,816 2,159,622 2.68 3,349,823 1.73 1,003
2012 88,196 2,243,474 3.93 3,406,186 2.59 1,530
2013 91,438 2,337,129 3.91 3,476,638 2.63 1,586
2014 85,308 2,398,151 3.56 3,503,774 2.43 1,480
2015 105,483 2,522,048 4.18 3,686,202 2.86 1,830
2016 105,676 2,508,933 4.21 3,723,003 2.84 1,808
2017 98,288 2,652,700 3.71 3,914,425 2.51 1,672
2018 90,813 2,686,813 3.38 3,931,498 2.31 1,558
2019 86,164 2,765,470 3.12 4,141,732 2.08 1,487
*Prior year information has been modified to net GO Bonds with the fund balance in Debt Service.
*General Obligation Bonds are netted with the fund balance in the Debt Service fund.
168
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2019
TABLE 11
Jurisdiction
Net General
Obligation
Bonded Debt
Outstanding
Tax
Increment
Financing
Bonds (1)
Tax
Increment
Financing
Notes
Sales Tax
Revenue
Bonds
Direct, City of Dubuque, Iowa $ 84,699,999 $ 19,535,000 $ 176,054 $
Overlapping:
Dubuque County
Dubuque Community School District
Northeast Iowa Community College
Total Overlapping
Total
Loans
Payable
$ 3,984,111
21,020,000 - - 245,712
18,060,000 23,002,435
39,080,000 - - 23,248,147
$ 123,779,999 $ 19,535,000 $ 176,054 $ - $ 27,232,258
Source: Dubuque County Auditor, Dubuque Community School District and Northeast Iowa Community College
(1) Excludes sales tax revenue bonds.
Percentage
Applicable
to City
100.00 %
70.82 %
53.95 %
54.02 %
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 governments that is borne 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 entire debt burden borne 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 government.
Amount
Applicable to
Government
$ 108,395,164
15,060,377
22,181,927
37,242,305
$ 145,637,469
169
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2010 2011 2012 2013
Debit limit $ 167,247 $ 174,333 $ 177,668 $ 181,668
Total net debt
applicable to limit
79,273 109,636 142,551 144,118
Legal debit margin $ 87,974 $ 64,697 $ 35,117 $ 37,550
Total net debt
applicable to the debt
limit as a percentage
of debt limit 47.40% 62.89% 80.23% 79.33%
170
TABLE 12
2014 2015 2016 2017 2018 2019
$ 183,621 $ 193,114 $ 196,031 $ 207,174 $ 209,049 $ 221,513
131,289 154,643 152,386 141,076 124,926 117,223
$ 52,332 $ 38,471 $ 43,645 $ 66,098 $ 84,123 $ 104,290
71.50% 80.08% 77.74% 68.10%
Legal Debt Margin Calculation for Fiscal Year 2019
Estimated actual value
Debt limit - 5% of total actual valuation
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund)
$ 4,430,255,110
$ 221,512,756
(117,222,925)
Legal debt margin $ 104,289,831
59.76% 52.92%
171
CITY OF DUBUQUE, IOWA
REVENUE DEBT COVERAGE
LAST TEN FISCAL YEARS
( IN THOUSANDS OF DOLLARS )
TABLE 13
Gross Operating Net Revenue Current Fiscal Year's
Fiscal Revenues Expenses Available For Debt Service Requirements
Year (1) (2) Debt Service Principal Interest
Total
Coverage
(3)
WATER UTILITY
2010 5,353 5,153 200 70 52 122 1.64
2011 5,680 5,316 364 70 182 252 1.44
2012 6,087 5,895 192 255 238 493 0.39
2013 6,944 5,391 1,553 260 231 491 3.16
2014 7,283 7,384 (101) 432 344 776 (0.13)
2015 7,511 6,322 1,189 275 218 493 2.41
2016 8,508 4,826 3,682 285 211 496 7.42
2017 8,589 4,678 3,911 473 305 778 5.03
2018 8,962 4,989 3,973 489 288 777 5.11
2019 9,160 5,726 3,434 505 345 850 4.04
STORMWATER UTILITY (a)
2010 2,357 1,320 1,037 75 58 133 7.80
2011 3,023 1,679 1,344 100 178 278 4.83
2012 3,211 1,497 1,714 231 243 474 3.62
2013 3,194 2,019 1,175 462 268 730 1.61
2014 3,240 1,833 1,407 320 309 629 2.24
2015 3,551 2,162 1,389 331 311 642 2.16
2016 3,948 2,140 1,808 341 301 642 2.82
2017 4,224 2,601 1,623 352 291 643 2.52
2018 4,486 2,374 2,112 363 283 646 3.27
2019 5,062 3,229 1,833 343 273 616 2.98
SEWAGE DISPOSAL WORKS
2010 5,995 5,331 664 - 7 7 94.86
2011 6,699 6,029 670 33 382 415 1.61
2012 7,878 7,018 860 34 1,129 1,163 0.74
2013 8,951 6,113 2,838 1,719 1,443 3,162 0.90
2014 10,083 6,754 3,329 2,326 1,423 3,749 0.89
2015 10,629 6,950 3,679 2,603 1,358 3,961 0.93
2016 12,237 7,702 4,535 2,610 1,435 4,045 1.12
2017 12,475 6,082 6,393 2,652 1,454 4,106 1.56
2018 12,731 6,360 6,371 2,707 1,476 4,183 1.52
2019 12,667 7,013 5,654 2,878 1,429 4,307 1.31
a) Excludes the 2015 Lower Bee Branch Stormwater SRF debt service paid by Sales Tax Increment revenue.
(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.
172
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
TABLE 14
Fiscal Year
Water Sewer Gallons
Revenue Revenue Billed
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
2018 8,525,072 12,015,480 1,632,426,374
2019 8,636,521 12,266,217 1,750,735,443
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
Steps Gallons 2019 2018 2017 2016 2015 2014 2013 2012
First 22,440 @ $ 0.00512 $ 0.00488 $ 0.00474 $ 0.00447 $ 0.00406 $ 0.00387 $ 0.00355 $ 0.00309
Next 89,760 @ 0.00419 0.00399 0.00387 0.00365 0.00332 0.00316 0.00290 0.00252
Next 261,800 @ 0.00391 0.00372 0.00361 0.00340 0.00309 0.00294 0.00270 0.00235
Next 374,000 @ 0.00345 0.00329 0.00280 0.00301 0.00274 0.00261 0.00239 0.00208
Excess @ 0.00302 0.00288 0.00280 0.00264 0.00240 0.00229 0.00210 0.00183
173
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST TEN FISCAL YEARS
TABLE 15
Fiscal Year Residential Commercial Industrial Government Total
2010 20,204 1,887 71 48 22,210
2011 20,338 1,904 79 51 22,372
2012 20,532 1,902 79 52 22,565
2013 20,753 1,921 80 53 22,807
2014 20,887 1,945 81 68 22,981
2015 20,969 1,968 83 76 23,096
2016 21,157 1,972 84 104 23,317
2017 21,522 2,061 83 114 23,780
2018 20,498 2,019 83 115 22,715
2019 20,523 2,148 80 147 22,898
174
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2019
TABLE 16
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot Inc #155296 $ 379,383 1 4.39 %
Hormel Foods Corporation* 199,349 2 2.31 $ 455,343 1 3.71 %
Prairie Farms Dairy Inc 138,403 3 1.60
Hormel Foods Corporation* 112,207 4 1.30 249,491 2 2.03
Peninsula Gaming Co LLC 48,029 5 0.56 64,413 9 0.52
Finley Hospital 47,345 6 0.55 78,698 4 0.64
APC, INC. 46,370 7 0.54
Alpine Park Community 46,121 8 0.53 93,356 3 0.76
Georgia Pacific 42,987 9 0.50 73,560 6 0.60
Stonehill Nursing Home 41,786 10 0.48 76,304 5 0.62
IADU Table Mound MHP LLC 66,301 8 0.54
Yes Companies Exp Fred, LLC 67,473 7 0.55
Grand Harbor Resor & Waterpark 60,482 10 0.49
Total Receipts 8,636,521 $ 12,266,217
*Same company, separate accounts. Previously combined several accounts under same business, now listed separately.
175
CITY OF DUBUQUE, IOWA
SALES TAX INCREMENT BONDS
FISCAL YEAR ENDING JUNE 30, 2019
TABLE 17
Fiscal
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Estimated
Sales Tax
Increment
Revenue
Receipts*
Senior Lien
Series 2015A
Net Debt Service
(1)
* $ 2,037,489 $
* 2,532,846
* 3,945,134
* 3,654,915
* 4,207,297
4,783,907
5,574,673
6,380,938
6,866,198
6,956,351
6,957,401
6,952,046
6,952,532
6,947,494
6,723,750
6,250,000
4,467,912
2,217,912
2,250,000
(762,650)
(762,650)
(762,650)
(762,650)
(762,650)
(2,767,650)
(2,771,000)
(2,768,969)
(2,771,031)
(2,768,719)
(2,768,394)
(2,767,300)
(2,768,800)
(2,766,400)
Remaining
Revenues After
Senior Lien
Debt Service
Second Lien
Series 2014
Net Debt
Service
(2)
$ 2,037,489 $
2,532,846
3,945,134
2,892,265
3,444,647
4,021,257
4,812,023
5,618,288
4,098,548
4,185,351
4,188,432
4,181,015
4,183,813
4,179,100
3,956,450
3,481,200
1,701,512
2,217,912
2,250,000
* Actual receipts.
(1) Net of capitalized interest and the debt service reserve fund.
(2) Net of capitalized interest.
(323,100)
(323,100)
(323,100)
(323,100)
(323,100)
(323,100)
(438,100)
(1,393,500)
(1,400,500)
(1,344,250)
(1,363,000)
(1,365,000)
(1,365,000)
Remaining
Revenues
After Second
Lien Debt
Service
$ 2,037,489
2,532,846
3,622,034
2,569,165
3,121,547
3,698,157
4,488,923
5,295,188
3,660,448
2,791,851
2,787,932
2,836,765
2,820,813
2,814,100
2,591,450
3,481,200
1,701,512
2,217,912
2,250,000
176
CITY OF DUBUQUE, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
TABLE 18
Per Capita Public
Personal Median School Unemployment
Personal Income Age Enrollment Rate
Year Population Income (1) (2) (3) (4)
2010 57,686 $ 2,188,952,956 $ 37,946 37 10,517 6.4 %
2011 57,637 2,354,759,635 40,855 37 10,467 5.8
2012 57,637 2,453,952,912 42,576 37 10,469 5.2
2013 57,637 2,489,053,845 43,185 39 10,513 4.6
2014 57,637 2,560,293,177 44,421 39 10,578 4.4
2015 57,637 2,645,653,574 45,902 38 10,634 3.7
2016 58,436 2,734,454,184 46,794 38 10,588 3.9
2017 58,799 2,717,101,790 46,210 38 10,556 2.9
2018 58,276 2,903,485,148 49,823 37 10,507 2.2
2019 57,941 * * 38 10,459 2.2
Data Sources:
(1) U.S. Department of Commerce, Bureau of Economic Analysis.
(2) Greater Dubuque Development Corporation.
(3) Dubuque Community School District.
(4) Iowa Department of Employment Services as of June 30.
* Unavailable at report date.
177
THIS PAGE IS INTENTIONALLY LEFT BLANK
178
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
TABLE 19
2019 2010
Percentage of Percentage of
# of Total City # of Total City
Employer Employees Rank Employment (1) Employees Rank Employment (1)
John Deere (2) 2,600 1 4.57 % 1,627 2 3.07 %
Dubuque Community Schools 1,957 2 3.44 1,800 1 3.40
Mercy One 1,410 3 2.48 1,324 3 2.50
Medical Associates 1,061 4 1.86 743 7 1.40
Unity Point Health -Finley Hospital 975 5 1.71 920 5 1.74
Andersen Windows 750 6 1.32 750 6 1.42
City of Dubuque 737 7 1.30 664 8 1.25
Sedgwick 725 8 1.27
Cottingham & Butler 650 9 1.14
Dubuque Bank & Trust and
Heartland Financial USA, 600 10 1.05
IBM 1,300 4 2.45
Prudential Retirement 550 9 1.04
Dubuque Racing Association 500 10 0.94
Holy Family Catholic Schools 500 10 0.94
11,465 20.15 % 10,678 20.16 %
Source: Greater Dubuque Development Corp.
(1) Based on the percentage of total employment for Dubuque area from the U.S. Department of Labor, Bureau of
Labor Statistics.
(2) Located just outside City Limits.
179
CITY OF DUBUQUE, IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2010 2011 2012 2013
Public Safety
Emergency Communications 13.00 13.00 13.00 13.00
Fire 90.00 90.00 90.00 90.00
Police 110.84 113.34 114.25 115.00
Building Services 8.00 9.00 9.00 9.00
Public Works
Public Works 87.42 87.42 87.42 86.17
Engineering 26.00 27.00 27.00 29.00
Health & Social Services
Health Services 4.00 4.00 4.00 4.00
Human Rights 3.00 3.00 4.00 5.00
Cultural and Recreation
Civic Center 0.15 0.15 0.15 0.15
Library 18.00 18.00 18.00 19.00
Park 22.51 22.50 23.50 23.50
Recreation 8.43 8.93 9.93 9.93
Community & Economic Development
Community / Economic Dev 3.00 3.00 3.00 3.00
Housing Services 22.00 22.25 23.00 25.80
Planning Services 8.00 8.00 8.00 8.00
General Government
Airport 12.00 12.00 12.00 12.00
Cable TV 2.00 2.00 2.00 2.00
City Clerk's Office 3.00 3.00 3.00 3.00
City Manager's Office 15.00 15.00 14.00 15.00
Finance 14.00 14.00 14.00 14.00
Legal 4.66 5.00 5.00 5.00
Information Services 7.00 7.00 7.00 7.50
Business Type
Water 24.00 25.00 25.00 25.00
Water & Resource Recovery Center 18.00 18.00 18.00 18.00
Parking 9.00 9.00 9.00 9.00
Transit 6.00 7.00 6.00 6.00
Total 539.01 546.59 549.25 557.05
Source: City Budget Records
Departments with employees who are allocated to more than one function are reflected in the area with largest number of employees.
180
TABLE 20
2014 2015 2016 2017 2018 2019
13.00 13.00 13.00 14.00 14.00 14.00
90.00 90.00 90.00 90.00 90.00 90.00
115.08 115.88 116.00 116.00 116.00 117.00
9.24 11.66 12.00 12.00 12.00 11.00
86.42 86.42 86.42 86.42 86.42 87.42
29.00 29.00 30.00 30.00 26.06 26.00
4.00 4.00 4.00 4.00 4.00 4.00
5.00 5.00 5.00 5.00 5.00 5.00
0.15 0.15 0.15 0.15 0.15 0.15
19.00 19.00 19.00 19.00 19.00 19.00
23.50 23.50 23.50 22.50 22.50 22.50
9.93 10.93 11.93 11.93 11.93 11.93
4.00 4.00 2.00 2.00 3.00 3.00
27.00 26.00 21.00 25.00 25.00 23.52
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
15.00 16.00 16.00 16.00 17.00 17.50
14.08 14.88 15.00 15.00 15.00 14.00
5.00 5.00 5.00 5.00 4.00 4.00
8.00 8.00 8.00 8.00 8.00 8.00
26.00 26.00 25.00 25.00 25.00 24.00
18.00 18.00 17.00 17.00 17.00 15.00
9.00 9.00 9.00 8.00 7.00
6.32 8.00 13.00 13.00 14.00 20.00
561.72 568.42 567.00 570.00 567.06 562.02
181
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY
FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal -
2010 2011 2012 2013
Public Safety
Police
Physical arrests 6,365 6,350 6,319 6,106
Traffic violations 8,901 12,289 11,836 12,089
Parking violations 37,056 35,799 34,910 35,516
Fire
Number of calls answered 4,557 4,884 5,307 4,792
Inspections conducted 1,035 555 589 512
Sewer
Sewage system
Daily average treatment in gallons 9,068,000 8,132,000 7,817,000 10,987,000
Maximum daily capacity of treatment plant in gallons 21,131,000 23,240,000 23,240,000 23,240,000
Water systems
Daily average consumption in gallons 7,684,000 7,636,000 7,226,000 6,953,000
Maximum daily capacity of plant in gallons 18,000,000 18,000,000 18,000,000 18,000,000
Refuse (Municipal Collection)
Tonnage
Sources: Various City Departments.
Statistics updated for fiscal year 2017
10,615 10,660 11,180 10,535
182
TABLE 21
Year
2014 2015 2016 2017 2018 2019
5,532 3,767 3,397 3,238 3,519 3,403
8,959 7,354 9,058 9,063 9,415 8,369
36,768 37,635 38,880 33,953 32,857 25,685
5,165 5,603 5,750 5,990 5,949 6,058
471 791 993 1,649 1,675 1,232
7,091,000 7,237,000 7,016,000 7,377,000 7,900,000 7,930,000
24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000
7,235,000 6,956,000 7,068,184 7,200,000 6,917,000 6,133,000
18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 18,000,000
10,311 10,690 11,098 11,284 11,481 11,569
183
CITY OF DUBUQUE, IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal
2010 2011 2012 2013
Public safety
Police
Stations 1 1 1 1
Patrol units 22 22 22 22
Fire
Stations 6 6 6 6
Aerial trucks 3 3 3 3
Public works
Streets
Miles (1) 321 325 328 329
Street lights (1) 1,916 1,931 2,081 2,084
Health and social services
Hospital 2 2 2 2
Number of patient beds 389 389 389 389
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 48 48 51 51
Acreage 901 901 1,001 1,001
Recreation
Civic center 1 1 1 1
Swimming pools 2 2 2 2
Softball fields 7 7 7 7
Baseball fields 1 1 1
Tennis courts 20 20 20 20
Sewer
Sewage system
Miles of sanitary sewer (1) 300 300 304 304
Miles of storm sewers (1) 144 150 155 141
Number of treatment plants 1 1 1 1
Number of service connectors 21,599 21,702 22,393 22,428
Water systems
Miles of water mains 318 319 320 321
Number of service connectors 21,986 22,092 22,161 22,536
Number of city owned fire hydrants 2,843 2,854 2,863 2,879
Sources: Various City Departments.
(1) City GIS System
184
TABLE 22
Year
2014 2015 2016 2017 2018 2019
1 1 1 1 1 1
22 22 22 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
331 333 332 336 334 340
2,110 2,161 2,162 2,184 2,312 2,436
2 2 2 2 2 2
389 373 373 373 373 373
1 1 1 1 1 1
1 1 1 1 1 1
51 53 53 53 53 53
1,001 974 974 974 974 974
1 1 1 1 1 1
2 2 2 2 2 2
7 11 11 11 11 10
1 1 1 1 1 1
20 20 20 20 20 16
307 320 322 326 321 332
144 145 147 152 156 158
1 1 1 1 1 1
22,888 22,928 23,119 23,343 23,423 23,488
315 318 329 337 370 410
22,702 22,787 22,970 23,443 23,546 23,605
2,336 2,346 2,380 2,450 2,973 2,539
185
CITY OF DUBUQUE, IOWA
RETAIL SALES
LAST TEN CALENDAR YEARS
TABLE 23
Year
Taxable Number of
Retail Sales Businesses
2010 $ 971,050,048
2011 1,014,284,468
2012 1,060,222,499
2013 1,057,837,212
2014 1,240,664,593
2015 1,305,893,119
2016 1,316,561,626
2017 1,324,993,666
2018 1,323,052,623
2019
Data Sources:
Iowa Department of Revenue
* Unavailable at report date
*
2,043
2,009
1,993
2,008
3,337
3,347
2,997
2,971
2,970
186
Compliance Section
June 30, 2019
City of Dubuque, Iowa
187
THIS PAGE IS INTENTIONALLY LEFT BLANK
188
EideBailly®
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
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 Government Auditing 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 information of the City of Dubuque, Iowa, (City) as of and for
the year ended June 30, 2019, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements, and have issued our report thereon dated March 30,
2020.
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 Government Auditing
Standards, and accordingly, this report 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 Government Auditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
What inspires you, inspires us. I eidebailly.com
1545 Associates Dr., Ste. 101 Dubuque, IA 52002-2299 I T 563 556 1790 I F 563.557.7842 EOE
189
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section 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. We did identify a
certain deficiency in internal control, described in the accompanying schedule of findings and
questioned costs as item 2019-001 that we consider to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards. 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, 2019 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 findings identified in our audit are described in the accompanying schedule
of findings and questioned costs. The City's responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
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 Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Dubuque, Iowa
March 30, 2020
190
EideBailly®
CPAs & BUSINESS ADVISORS
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 for the year ended June 30, 2019. 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 Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform 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 performing such other procedures as
we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our qualified and unmodified opinions on
compliance for major federal programs. However, our audit does not provide a legal determination of
the City's compliance.
What inspires you, inspires us. I eidebailly.com
1545 Associates Dr., Ste. 101 Dubuque, IA 52002-2299 I T 563 556 1790 I F 563.557.7842 EOE
191
Basis for Qualified Opinion on CDBG Entitlement Grants Cluster
As described in the accompanying schedule of findings and questioned costs, the City did not comply
with requirements regarding CFDA 14.218 CDBG Entitlement Grants Cluster as described in finding
numbers 2019-002 for Allowable Cost/Cost Principles and 2019-003 for Reporting. Compliance with such
requirements is necessary, in our opinion, for the City to comply with the requirements applicable to
that program.
Qualified Opinion on CDBG Entitlement Grants Cluster
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the
City complied, in all material respects, with the types of compliance requirements referred to above that
could have a direct and material effect on the CDBG Entitlement Grants Cluster for the year ended
June 30, 2019.
Unmodified Opinion on Each of the Other Major Federal Programs
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its other 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, 2019.
The City's responses to the noncompliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. 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.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of 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.
Our consideration of internal control over compliance was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that have not been identified. However, as discussed below, we identified certain
deficiencies in internal control over compliance that we consider to be material weaknesses and a
significant deficiency.
192
A deficiency in internal control over 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 material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement will not be prevented, or detected and corrected, on a timely basis. We consider the
deficiencies in internal control over compliance described in the accompanying schedule of findings and
questioned costs as items 2019-002, 2019-003, and 2019-005 to be material weaknesses.
A significant deficiency in internal control over 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. We consider the deficiency in internal
control over compliance described in the accompanying schedule of findings and questioned costs as
item 2019-004 to be a significant deficiency.
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. 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.
Dubuque, Iowa
March 30, 2020
193
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
Department of Housing and Urban Development
Direct program
CDBG - Entitlement Grants Cluster
Community Development Block
Grants/Entitlement Grants 14.218 $ 143,819 $ 125,441
Community Development Block
Grants/Entitlement Grants 14.218 37,935 -
Community Development Block
Grants/Entitlement Grants 14.218 591,189 -
Community Development Block
Grants/Entitlement Grants 14.218 661,584
Community Development Block
Grants/Entitlement Grants 14.218 139,085 -
Total CDBG - Entitlement Grants Cluster
Continuum of Care Program
Pass -through program from
Iowa Economic Development Authority
CDBG - Disaster Recovery Grants - Pub. L. No. 113-2 Cluster
National Resiliency Disaster Recovery Competition
Direct program
Section 8 Project -Based Cluster
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
Section 8 Housing Choice Vouchers
1,573,612 125,441
14.267 82,411
14.272 B-13-DS-19-001 9,737,453
14.856 93,317
14.871
14.871
5,162,973
133,518
Total Housing Voucher Cluster 5,296,491
Lead -Based Paint Hazard Control in
Privately -Owned Housing
Total Department of Housing and Urban Development
Department of Justice
Pass -through program from
Iowa Department of Justice
Violence Against Women Formula Grants
Violence Against Women Formula Grants
14.900 646,179
16.588
16.588
V W-18-42B-CJ
VW-19-14-CJ
17,429,463 125,441
406
2,072
2,478
Public Safety Partnership and Community
Policing Grants 16.710 18-COPS-HEROIN-02 2,000
Public Safety Partnership and Community
Policing Grants 16.710 14-CAMP-04 4,997
6,997
194
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
Department of Justice (continued)
Direct program
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 $ 11,597 $
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 9,245
Pass -through program from
Dubuque County Sheriff's Office
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 16-JAG-249317 30,813
51,655
Total Department of Justice 61,130
Department of Transportation
Direct program
Airport Improvement Program
Airport Improvement Program
20.106 52,019
20.106 26,536
78,555
Highway Planning and Construction Cluster
Pass -through program from
Iowa Department of Transportation
Highway Planning and Construction 20.205 HDP-2100-(679)-71-31 194,022
Highway Planning and Construction 20.205 HDP-2100-(667)-71-31 860,735
Highway Planning and Construction 20.205 STP-U-2100(634)-70-31 472,677
Highway Planning and Construction 20.205 HDP-2100-(664)-71-31 36,753
Highway Planning and Construction 20.205 STP-A-2100(688)-86-31 180,486
Highway Planning and Construction 20.205 STP-A-2100(689)-86-31 283,953
Highway Planning and Construction 20.205 STP-A-2100(692)-86-31 289,459
Highway Planning and Construction 20.205 STP-A-2100(693)-86-31 108,771
Highway Planning and Construction 20.205 HDP-2100-(678)-71-31 167
Total Highway Planning and Construction Cluster 2,427,023
Federal Transit Cluster
Direct program
Federal Transit - Formula Grants
Federal Transit - Formula Grants
20.507 202,953
20.507 1,175, 502
Total Federal Transit Cluster 1,378,455
Pass -through program from
Iowa Department of Transportation
Formula Grants for Rural Areas
Transit Services Programs Cluster
Enhanced Mobility of Seniors and
Individuals with Disabilities
20.509 I C B-CY 18 812
20.513 IA-2016-026-022-10 50,667
195
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
Department of Transportation (continued)
Pass -through program from
Iowa Department of Public Safety
Highway Safety Cluster
State and Community Highway Safety 20.600 PAP 18-402-MOOP $ 9,139 $
State and Community Highway Safety 20.600 PAP 19-402-MOOP 16,535
Total Highway Safety Cluster 25,674
Total Department of Transportation 3,961,186
Environmental Protection Agency
Direct program
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 30,703
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 48,204
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 27,488
Total Environmental Protection Agency 106,395
Corporation for National and Community Service
Pass -through program from
Iowa Commission on Volunteers
AmeriCorps 94.006 17-AC-10 52,325
AmeriCorps 94.006 17-AF-05 12,085
AmeriCorps 94.006 18-AC-10 122,832
AmeriCorps 94.006 18-AF-05 20,502
AmeriCorps 94.006 18-FP-02 25,009
Total Corporation for National and Community Service 232,753
Total Federal Financial Assistance $ 21,790,927 $ 125,441
196
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Note 1- Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of the City of Dubuque, Iowa, (the City) under programs of the federal government for the year ended June 30,
2019. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City,
it is not intended to and does not present the financial position, changes in net position, fund balance, or cash
flows of the City.
Note 2 - Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified accrual basis of accounting, except for
subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following
the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable
or are limited as to reimbursement.
Note 3 - Indirect Cost Rate
The City has not elected to use the 10% de minimis cost rate.
197
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part I: Summary of the Independent Auditor's Results:
FINANCIAL STATEMENTS
Type of auditor's report issued
Unmodified
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
Significant deficiencies identified not
considered to be material weaknesses
Type of auditor's report issued on compliance for major programs:
Yes
Yes
Unmodified for all
major federal
programs except
for Community
Development
Block Grants/
Entitlement
Grants, which was
qualified
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 Program
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218
National Resiliency Disaster Recovery Competition 14.272
Federal Transit Cluster
Federal Transit - Formula Grants 20.507
Dollar threshold used to distinguish between type A
and type B programs: $750,000
Auditee qualified as low -risk auditee? No
CFDA Number
198
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part II: Financial Statement Findings
2019-001 Material Audit Adjustments
Material Weakness
Criteria: A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles.
Condition: During the course of our engagement, we proposed significant audit adjustments to
accounts receivable, intergovernmental receivables, notes receivables, inventory, capital assets,
accounts payable, and the schedule of expenditures of federal awards.
Cause: The City's existing internal controls over accounts receivable, intergovernmental
receivables, notes receivables, inventory, capital assets, accounts payable, and the schedule of
expenditures of federal awards are limited.
Effect: The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendation: We recommend the City increase procedures over accounts receivable,
intergovernmental receivables, notes receivables, inventory, capital assets, accounts payable, and
the Schedule of Expenditures of Federal Awards.
Views of Responsible Officials: We agree with the auditor's comments. The City of Dubuque Finance
Department has experienced significant staff turnover, including all management staff, in the past
twelve months. The following action will be taken to improve the situation. Staff recruitment
efforts will focus on candidates with government accounting experience. In addition, outside
training will be provided for existing staff on government accounting, certified annual financial
report preparation, and audit workpapers. A budget/financial analyst was hired on January 28,
2020 to focus on grants and develop a process to assist departments with grant management and
reporting. This new position will also complete the Schedule of Expenditures of Federal Awards and
attend specialized grant training.
Part III: Federal Award Findings and Questioned Costs:
2019-002
US Department of Housing and Urban Development
CDBG — Entitlement Grants Cluster
CFDA # 14.218 Community Development Block Grant/Entitlement Grants
Federal Award Numbers B-17-MC-19-0004, B-17-MC-19-0004, B-17-MC-19-0004, and
B-17-MC-19-0004 for the fiscal year ended June 30, 2019
Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance and Material Noncompliance
199
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
Criteria: A properly designed system of internal control over compliance with the requirements of
federal programs allows entities to meet those requirements set forth by the federal government
in administering federal grants. The Uniform Guidance (2 CFR 200.430) requires charges to Federal
awards for salaries and wages must be based on records that accurately reflect the work
performed. Records must support the distribution of the employee's salaries or wages among
specific activities or cost objectives.
Condition: During our testing of payroll expenditures and related time sheets, we noted that the
time sheets maintained as part of the City's records did not reflect the specific activities being
performed by the employee.
Cause: The City's internal controls over compliance are not properly designed to capture the
information required by Uniform Guidance.
Effect: The City did not comply with the Uniform Guidance regarding employee records.
Questioned Costs: Salaries and benefits of $246,995 were included in program expenditures. We
were unable to determine the amount of questioned costs, if any, because we were unable to
determine the actual time incurred by the employees.
Context/Sampling: A non -statistical sample of 60 transactions, which included 10 payroll related
items were selected for testing. The 10 payroll items tested accounted for $32,000 of the $246,995
of salaries and benefits included in program expenditures.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the City develop, document, and retain a formal time study that
complies with the requirements of the Uniform Guidance.
Views of Responsible Officials: We agree with the auditor's comments. The following action will be
taken to improve the situation. The City of Dubuque is recording salary and wages based on actual
activities performed in a day on timesheets, backed by outlook calendar attachments until another
time study can be completed. The time study completed in FY 2019 was over 3 months and was
documented by 30-minute intervals for each activity completed. Unfortunately, not every
employee's documentation was placed in the permanent payroll files and was therefore
unavailable for review and needs to be re-created in a new time study.
200
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
2019-003
US Department of Housing and Urban Development
CDBG — Entitlement Grants Cluster
CFDA # 14.218 Community Development Block Grant/Entitlement Grants
Federal Award Numbers B-17-MC-19-0004, B-17-MC-19-0004, B-17-MC-19-0004, and
B-17-MC-19-0004 for the fiscal year ended June 30, 2019
Reporting
Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: Federal regulations require the submission of quarterly financial reports of the program.
Condition: Required quarterly reports for September 30, 2018 and December 31, 2018 were not
filed with the granting agency.
Cause: Staff turnover resulted in a miscommunication on the responsibility for submitting the
quarterly reports (SF-425).
Effect: The City did not comply with the reporting requirements.
Questioned Costs: None.
Context/Sampling: 2 of the 4 quarterly reports were not filed.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the City develop and implement procedures to ensure reports
are prepared and reviewed in compliance with the reporting requirements of the grant.
Views of Responsible Officials: We agree with the Auditor's comments. Officials found that HUD
informs only those on the distribution list when a report is missing. This allowed a single employee
to ignore the requests for quarterly reporting, without raising the awareness of anyone else in the
organization that the reports were not completed. The following action will be taken to improve
the situation. The City of Dubuque has mandated two employees receive notifications from HUD.
Additionally, one employee is responsible for the preparation of the report, another is responsible
for review and submission of the report. The Director is then responsible for the signature of
approval. This ensures that three employees have responsibility and sign off to check the quarterly
report has been submitted. Additionally, the Community Development Advisory Commission
adopted a schedule of Federally Required Submissions, so they can monitor the status of those
submissions. Employees that prepare the agenda for the Commission are not part of the
submission process, and therefore are a secondary control to ensure the Commission receives
documentation that required reports are filed. Commission meeting minutes from the Community
Development Advisory Commission are placed on the City Council agenda for review and approval;
therefore, a third control mechanism for ensuring required documentation is submitted timely.
201
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
2019-004
U.S. Department of Transportation
CFDA 20.507, Federal Transit — Formula Grants
Federal Award Numbers IA-2018-013-00 and IA-2019-022-00 for the fiscal year ended
June 30, 2019
Procurement, Suspension and Debarment
Significant Deficiency in Internal Control over Compliance
Criteria: The Uniform Guidance, Section 200.303 Internal Controls, requires the non-federal entity
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
terms and conditions of the federal award.
Non-federal entities are also prohibited from contracting with or making subawards under covered
transactions to parties that are suspended or debarred. "Covered transactions" 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 other
criteria as specified in 2 CFR section 180.220.
When a non-federal entity enters into a covered transaction with an entity at a lower tier, the
nonfederal 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
transaction. This verification may be accomplished by (1) checking the Excluded Parties List System
(EPLS) maintained by the General Services Administration (GSA) and available at
https://www.sam.gov/portal/public/SAM/, (2) collecting a certification from that entity, or (3)
adding a clause or condition to the covered transaction with that entity.
Condition: We tested compliance and internal controls over suspension and debarment and noted
five vendors with fiscal year 2019 expenditures over $25,000, in which there was no
documentation to support a System of Award Management (SAM) verification was performed to
determine if the entity was suspended or debarred.
Cause: There is a lack of oversight, awareness, or understanding of all of the specific requirements
under the Uniform Guidance and applicable CFR sections. Controls were not adequately designed
to ensure compliance with all of these requirements.
Effect: Failure to provide documentation of performance of the SAM's verification being performed
may result in disallowed cost. In addition, a lack of specific policies increases the overall risk that
employees are not aware of the requirements with contracting and awarding contracts to lower
tier entities.
Questioned Costs: None reported
202
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
2019-005
Context/Sampling: All vendors with fiscal year 2019 expenditures over $25,000, which totaled six,
were selected for suspension and debarment testing.
Repeat Finding from Prior Years: No
Recommendation: We recommend that management maintain adequate supporting
documentation and records to document history and methods of procurement and the procedures
performed to comply with the Uniform Guidance.
Views of Responsible Officials: We agree with the auditor's comments. The City of Dubuque Finance
Department and Transportation Services Departments have experienced significant staff turnover,
including all management staff, in the past twelve months. The following action will be taken to
improve the situation. A budget/financial analyst was hired on January 28, 2020 to focus on grants
and develop a process to assist departments with grant management and reporting. This new
position will also attend specialized grant training. The Finance Department will incorporate
suspension and debarment checks into the procurement process to ensure compliance with grants.
In addition, the Finance Department will train departments on the process of suspension and
debarment checks related to grants.
US Department of Housing and Urban Development
CFDA # 14.272 National Disaster Resilience Competition (CDBG-NDR)
Federal Award Numbers 13-NDRI-001 and 13-NDRI-011 for the fiscal year ended June 30, 2019
Matching, Level of Effort, Earmarking and Reporting
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR Section 200.306 states that the recipient or subrecipient must meet all federal
matching requirements, including recording and reporting verifiable and accurate documentation.
Condition: The City did not have proper controls in place to document or track and report matching
funds.
Cause: Management failed to implement a system to track and report matching funds.
Effect: Without a formal structure in place to monitor matching funds, the City was unable to
accurately document and report the matching requirement.
Questioned Costs: None.
Context/Sampling: A non -statistical sample of 4 reports out of 11 reports were selected for testing.
203
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the City perform additional review procedures relating to
matching funds and reporting.
Views of Responsible Officials: We agree with the auditor's comments. The following action will be
taken to improve the situation. Two employees are responsible for preparing and then submitting
reports on expenditures for the grant. The first prepares the report based on the financial reporting
system, the second employee then takes that information and loads it into the State reporting
system. There was not an additional step that required review that the submission matched the
information provided to that employee. The City of Dubuque now requires the State submission
report be reviewed for accuracy by a separate employee and recorded as reviewed by that
employee be signature and placement into the draw folder.
Part IV: Other Findings Related to Required Statutory Reporting:
2019-IA-A Certified Budget — Disbursements during the year ended June 30, 2019 did not exceed the budget
by function.
2019-IA-B Questionable Expenditures — We noted no expenditures that we believe may not meet the
requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979.
2019-IA-C Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
2019-IA-D Business Transactions — Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and
Business Connection
Transaction
Description
Amount
Mike Kerth, City employee, spouse is Supplies $ 19,263
co-owner of Steve's Ace Hardware
Riley Fairchild, City employee, spouse is
owner of Fairchild Business Coaching
Kevin Esser, City employee, spouse is
Janice Esser
Gina Hodgson, City employee,
spouse is Bob Hodgson
Services
Rehab Grant
Crop Cover
12,695
10,000
990
204
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part IV: Other Findings Related to Required Statutory Reporting (continued):
2019-IA-E
In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transaction with Gina Hodgson
does not appear to represent conflict of interest since the total transaction was less than $1,500
during the fiscal year. The transactions with Mike Kerth, Riley Fairchild, and Kevin Esser may
represent a conflict of interest since they were not entered into through competitive bidding in
accordance with Chapter 362.5(3)(d) of the Code of Iowa.
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.
2019-IA-F Council Minutes — No transactions were found that we believe should have been approved in the
Council minutes but were not.
2019-IA-G
2019-IA-H
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.
Revenue Debt — The Stormwater Utility revenue capital loan notes include a requirement for the
Utility to maintain rates in each year for the payment of the expenses of the Utility and to meet
principal and interest on the notes. In fiscal year 2019, the net revenues of the Utility were less
than the current year debt service requirement on the notes.
No instances of non-compliance with the provisions of the Sewage Disposal Works or Water Utility
revenue debt resolutions were noted.
Recommendation — The City should review the debt covenant requirements and contact their bond
consultants.
Response — We agree with the auditor's comments. When the City of Dubuque issued Series 2015B
State Revolving Fund loan, the dedicated source of repayment is from the flood mitigation fund
(sales tax increment). The required coverage is being provided from sales tax increment. At the
date of issuance, it was intended that if the flood mitigation fund has a sufficient balance to
provide debt payments, the Series 2015B State Revolving Fund Loan could be excluded from the
debt covenant calculation of stormwater revenue bonds. However, the loan documents for the
Series 2015B State Revolving Fund Loan did not reflect excluding the series from the bond covenant
calculation as intended. The following action will be taken to improve the situation. City of
Dubuque staff have contacted the Iowa Finance Authority to amend the loan agreement for the
Series 2015B State Revolving Fund loan. The Iowa Finance Authority has agreed to a loan
amendment. The City of Dubuque will meet surety bond coverage for future fiscal years after the
loan is amended.
205
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part IV: Other Findings Related to Required Statutory Reporting (continued):
2019-IA-I
2019-IA-J
2019-IA-K
2019-IA-L
Annual Urban Renewal Report — The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1. However, we noted
instances in which TIF debt balances did not reconcile with City records.
Recommendation — The City should implement additional preparation and review procedures
relating to the Annual Urban Renewal Report.
Response — We agree with the auditor's comments. The City of Dubuque Finance Department has
experienced significant staff turnover, including all management staff, in the past twelve months.
The following action will be taken to improve the situation. Additional staff will be trained on
preparing the Annual Urban Renewal Report so that an internal review can take place prior to
submitting the report to the State of Iowa.
Tax Increment Financing — Chapter 403.19 of the Code of Iowa provides a municipality shall certify
indebtedness to the County Auditor. While performing our audit procedures, we noted instances in
which TIF debt balances did not reconcile with City records.
Recommendation — The City should implement additional preparation and review procedures
relating to the annual TIF Debt Certification to the County.
Response — We agree with the auditor's comments. The City of Dubuque Finance Department has
experienced significant staff turnover, including all management staff, in the past twelve months.
The following action will be taken to improve the situation. Additional staff will be trained on
preparing the Tax Increment Financing certification of indebtedness so that an internal review can
take place prior to submitting the report to Dubuque County.
Solid Waste Tonnage Fees Retained — No instances of non-compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 4556.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
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.
206
Compliance Section
June 30, 2019
City of Dubuque, Iowa
eidebailly.com
EideBailly®
CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
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 Government Auditing 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 information of the City of Dubuque, Iowa, (City) as of and for
the year ended June 30, 2019, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements, and have issued our report thereon dated March 30,
2020.
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 Government Auditing
Standards, and accordingly, this report 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 Government Auditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) to determine the audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
What inspires you, inspires us. I eidebailly.com
1545 Associates Dr., Ste. 101 Dubuque, IA 52002-2299 I T 563 556 1790 I F 563.557.7842 EOE
Our consideration of internal control over financial reporting was for the limited purpose described in
the first paragraph of this section 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. We did identify a
certain deficiency in internal control, described in the accompanying schedule of findings and
questioned costs as item 2019-001 that we consider to be a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the determination of financial statement amounts. However, providing an opinion on
compliance with those provisions was not an objective of our audit, and accordingly, we do not express
such an opinion. The results of our tests disclosed no instances of noncompliance or other matters that
are required to be reported under Government Auditing Standards. 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, 2019 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 findings identified in our audit are described in the accompanying schedule
of findings and questioned costs. The City's responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
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 Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Dubuque, Iowa
March 30, 2020
EideBailly®
CPAs & BUSINESS ADVISORS
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 for the year ended June 30, 2019. 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 Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform 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 performing such other procedures as
we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our qualified and unmodified opinions on
compliance for major federal programs. However, our audit does not provide a legal determination of
the City's compliance.
What inspires you, inspires us. I eidebailly.com
1545 Associates Dr., Ste. 101 Dubuque, IA 52002-2299 I T 563 556 1790 I F 563.557.7842 EOE
Basis for Qualified Opinion on CDBG Entitlement Grants Cluster
As described in the accompanying schedule of findings and questioned costs, the City did not comply
with requirements regarding CFDA 14.218 CDBG Entitlement Grants Cluster as described in finding
numbers 2019-002 for Allowable Cost/Cost Principles and 2019-003 for Reporting. Compliance with such
requirements is necessary, in our opinion, for the City to comply with the requirements applicable to
that program.
Qualified Opinion on CDBG Entitlement Grants Cluster
In our opinion, except for the noncompliance described in the Basis for Qualified Opinion paragraph, the
City complied, in all material respects, with the types of compliance requirements referred to above that
could have a direct and material effect on the CDBG Entitlement Grants Cluster for the year ended
June 30, 2019.
Unmodified Opinion on Each of the Other Major Federal Programs
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have a direct and material effect on each of its other 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, 2019.
The City's responses to the noncompliance findings identified in our audit are described in the
accompanying schedule of findings and questioned costs. 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.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of 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.
Our consideration of internal control over compliance was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies and therefore, material weaknesses or significant
deficiencies may exist that have not been identified. However, as discussed below, we identified certain
deficiencies in internal control over compliance that we consider to be material weaknesses and a
significant deficiency.
A deficiency in internal control over 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 material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement will not be prevented, or detected and corrected, on a timely basis. We consider the
deficiencies in internal control over compliance described in the accompanying schedule of findings and
questioned costs as items 2019-002, 2019-003, and 2019-005 to be material weaknesses.
A significant deficiency in internal control over 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. We consider the deficiency in internal
control over compliance described in the accompanying schedule of findings and questioned costs as
item 2019-004 to be a significant deficiency.
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. 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.
Dubuque, Iowa
March 30, 2020
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
Department of Housing and Urban Development
Direct program
CDBG - Entitlement Grants Cluster
Community Development Block
Grants/Entitlement Grants 14.218 $ 143,819 $ 125,441
Community Development Block
Grants/Entitlement Grants 14.218 37,935 -
Community Development Block
Grants/Entitlement Grants 14.218 591,189 -
Community Development Block
Grants/Entitlement Grants 14.218 661,584
Community Development Block
Grants/Entitlement Grants 14.218 139,085 -
Total CDBG - Entitlement Grants Cluster
Continuum of Care Program
Pass -through program from
Iowa Economic Development Authority
CDBG - Disaster Recovery Grants - Pub. L. No. 113-2 Cluster
National Resiliency Disaster Recovery Competition
Direct program
Section 8 Project -Based Cluster
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
Section 8 Housing Choice Vouchers
1,573,612 125,441
14.267 82,411
14.272 B-13-DS-19-001 9,737,453
14.856 93,317
14.871
14.871
5,162,973
133,518
Total Housing Voucher Cluster 5,296,491
Lead -Based Paint Hazard Control in
Privately -Owned Housing
Total Department of Housing and Urban Development
Department of Justice
Pass -through program from
Iowa Department of Justice
Violence Against Women Formula Grants
Violence Against Women Formula Grants
14.900 646,179
16.588
16.588
V W-18-42 B-CJ
VW-19-14-CJ
17,429,463 125,441
406
2,072
2,478
Public Safety Partnership and Community
Policing Grants 16.710 18-COPS-HEROIN-02 2,000
Public Safety Partnership and Community
Policing Grants 16.710 14-CAMP-04 4,997
6,997
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
Department of Justice (continued)
Direct program
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 $ 11,597 $
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 9,245
Pass -through program from
Dubuque County Sheriff's Office
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 16-JAG-249317 30,813
51,655
Total Department of Justice 61,130
Department of Transportation
Direct program
Airport Improvement Program
Airport Improvement Program
20.106 52,019
20.106 26,536
78,555
Highway Planning and Construction Cluster
Pass -through program from
Iowa Department of Transportation
Highway Planning and Construction 20.205 HDP-2100-(679)-71-31 194,022
Highway Planning and Construction 20.205 HDP-2100-(667)-71-31 860,735
Highway Planning and Construction 20.205 STP-U-2100(634)-70-31 472,677
Highway Planning and Construction 20.205 HDP-2100-(664)-71-31 36,753
Highway Planning and Construction 20.205 STP-A-2100(688)-86-31 180,486
Highway Planning and Construction 20.205 STP-A-2100(689)-86-31 283,953
Highway Planning and Construction 20.205 STP-A-2100(692)-86-31 289,459
Highway Planning and Construction 20.205 STP-A-2100(693)-86-31 108,771
Highway Planning and Construction 20.205 HDP-2100-(678)-71-31 167
Total Highway Planning and Construction Cluster 2,427,023
Federal Transit Cluster
Direct program
Federal Transit - Formula Grants
Federal Transit - Formula Grants
20.507 202,953
20.507 1,175, 502
Total Federal Transit Cluster 1,378,455
Pass -through program from
Iowa Department of Transportation
Formula Grants for Rural Areas
Transit Services Programs Cluster
Enhanced Mobility of Seniors and
Individuals with Disabilities
20.509 ICB-CY18 812
20.513 IA-2016-026-022-10 50,667
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
Department of Transportation (continued)
Pass -through program from
Iowa Department of Public Safety
Highway Safety Cluster
State and Community Highway Safety 20.600 PAP 18-402-MOOP $ 9,139 $
State and Community Highway Safety 20.600 PAP 19-402-MOOP 16,535
Total Highway Safety Cluster 25,674
Total Department of Transportation 3,961,186
Environmental Protection Agency
Direct program
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 30,703
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 48,204
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 27,488
Total Environmental Protection Agency 106,395
Corporation for National and Community Service
Pass -through program from
Iowa Commission on Volunteers
AmeriCorps 94.006 17-AC-10 52,325
AmeriCorps 94.006 17-AF-05 12,085
AmeriCorps 94.006 18-AC-10 122,832
AmeriCorps 94.006 18-AF-05 20,502
AmeriCorps 94.006 18-FP-02 25,009
Total Corporation for National and Community Service 232,753
Total Federal Financial Assistance $ 21,790,927 $ 125,441
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2019
Note 1- Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of the City of Dubuque, Iowa, (the City) under programs of the federal government for the year ended June 30,
2019. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City,
it is not intended to and does not present the financial position, changes in net position, fund balance, or cash
flows of the City.
Note 2 - Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified accrual basis of accounting, except for
subrecipient expenditures, which are recorded on the cash basis. Such expenditures are recognized following
the cost principles contained in the Uniform Guidance, wherein certain types of expenditures are not allowable
or are limited as to reimbursement.
Note 3 - Indirect Cost Rate
The City has not elected to use the 10% de minimis cost rate.
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part I: Summary of the Independent Auditor's Results:
FINANCIAL STATEMENTS
Type of auditor's report issued
Unmodified
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
Significant deficiencies identified not
considered to be material weaknesses
Type of auditor's report issued on compliance for major programs:
Yes
Yes
Unmodified for all
major federal
programs except
for Community
Development
Block Grants/
Entitlement
Grants, which was
qualified
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 Program
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218
National Resiliency Disaster Recovery Competition 14.272
CFDA Number
Federal Transit Cluster
Federal Transit - Formula Grants 20.507
Dollar threshold used to distinguish between type A
and type B programs: $750,000
Auditee qualified as low -risk auditee? No
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part II: Financial Statement Findings
2019-001 Material Audit Adjustments
Material Weakness
Criteria: A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles.
Condition: During the course of our engagement, we proposed significant audit adjustments to
accounts receivable, intergovernmental receivables, notes receivables, inventory, capital assets,
accounts payable, and the schedule of expenditures of federal awards.
Cause: The City's existing internal controls over accounts receivable, intergovernmental
receivables, notes receivables, inventory, capital assets, accounts payable, and the schedule of
expenditures of federal awards are limited.
Effect: The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendation: We recommend the City increase procedures over accounts receivable,
intergovernmental receivables, notes receivables, inventory, capital assets, accounts payable, and
the Schedule of Expenditures of Federal Awards.
Views of Responsible Officials: We agree with the auditor's comments. The City of Dubuque Finance
Department has experienced significant staff turnover, including all management staff, in the past
twelve months. The following action will be taken to improve the situation. Staff recruitment
efforts will focus on candidates with government accounting experience. In addition, outside
training will be provided for existing staff on government accounting, certified annual financial
report preparation, and audit workpapers. A budget/financial analyst was hired on January 28,
2020 to focus on grants and develop a process to assist departments with grant management and
reporting. This new position will also complete the Schedule of Expenditures of Federal Awards and
attend specialized grant training.
Part III: Federal Award Findings and Questioned Costs:
2019-002
US Department of Housing and Urban Development
CDBG — Entitlement Grants Cluster
CFDA # 14.218 Community Development Block Grant/Entitlement Grants
Federal Award Numbers B-17-MC-19-0004, B-17-MC-19-0004, B-17-MC-19-0004, and
B-17-MC-19-0004 for the fiscal year ended June 30, 2019
Allowable Costs/Cost Principles
Material Weakness in Internal Control over Compliance and Material Noncompliance
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
Criteria: A properly designed system of internal control over compliance with the requirements of
federal programs allows entities to meet those requirements set forth by the federal government
in administering federal grants. The Uniform Guidance (2 CFR 200.430) requires charges to Federal
awards for salaries and wages must be based on records that accurately reflect the work
performed. Records must support the distribution of the employee's salaries or wages among
specific activities or cost objectives.
Condition: During our testing of payroll expenditures and related time sheets, we noted that the
time sheets maintained as part of the City's records did not reflect the specific activities being
performed by the employee.
Cause: The City's internal controls over compliance are not properly designed to capture the
information required by Uniform Guidance.
Effect: The City did not comply with the Uniform Guidance regarding employee records.
Questioned Costs: Salaries and benefits of $246,995 were included in program expenditures. We
were unable to determine the amount of questioned costs, if any, because we were unable to
determine the actual time incurred by the employees.
Context/Sampling: A non -statistical sample of 60 transactions, which included 10 payroll related
items were selected for testing. The 10 payroll items tested accounted for $32,000 of the $246,995
of salaries and benefits included in program expenditures.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the City develop, document, and retain a formal time study that
complies with the requirements of the Uniform Guidance.
Views of Responsible Officials: We agree with the auditor's comments. The following action will be
taken to improve the situation. The City of Dubuque is recording salary and wages based on actual
activities performed in a day on timesheets, backed by outlook calendar attachments until another
time study can be completed. The time study completed in FY 2019 was over 3 months and was
documented by 30-minute intervals for each activity completed. Unfortunately, not every
employee's documentation was placed in the permanent payroll files and was therefore
unavailable for review and needs to be re-created in a new time study.
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
2019-003
US Department of Housing and Urban Development
CDBG — Entitlement Grants Cluster
CFDA # 14.218 Community Development Block Grant/Entitlement Grants
Federal Award Numbers B-17-MC-19-0004, B-17-MC-19-0004, B-17-MC-19-0004, and
B-17-MC-19-0004 for the fiscal year ended June 30, 2019
Reporting
Material Weakness in Internal Control over Compliance and Material Noncompliance
Criteria: Federal regulations require the submission of quarterly financial reports of the program.
Condition: Required quarterly reports for September 30, 2018 and December 31, 2018 were not
filed with the granting agency.
Cause: Staff turnover resulted in a miscommunication on the responsibility for submitting the
quarterly reports (SF-425).
Effect: The City did not comply with the reporting requirements.
Questioned Costs: None.
Context/Sampling: 2 of the 4 quarterly reports were not filed.
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the City develop and implement procedures to ensure reports
are prepared and reviewed in compliance with the reporting requirements of the grant.
Views of Responsible Officials: We agree with the Auditor's comments. Officials found that HUD
informs only those on the distribution list when a report is missing. This allowed a single employee
to ignore the requests for quarterly reporting, without raising the awareness of anyone else in the
organization that the reports were not completed. The following action will be taken to improve
the situation. The City of Dubuque has mandated two employees receive notifications from HUD.
Additionally, one employee is responsible for the preparation of the report, another is responsible
for review and submission of the report. The Director is then responsible for the signature of
approval. This ensures that three employees have responsibility and sign off to check the quarterly
report has been submitted. Additionally, the Community Development Advisory Commission
adopted a schedule of Federally Required Submissions, so they can monitor the status of those
submissions. Employees that prepare the agenda for the Commission are not part of the
submission process, and therefore are a secondary control to ensure the Commission receives
documentation that required reports are filed. Commission meeting minutes from the Community
Development Advisory Commission are placed on the City Council agenda for review and approval;
therefore, a third control mechanism for ensuring required documentation is submitted timely.
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
2019-004
U.S. Department of Transportation
CFDA 20.507, Federal Transit — Formula Grants
Federal Award Numbers IA-2018-013-00 and IA-2019-022-00 for the fiscal year ended
June 30, 2019
Procurement, Suspension and Debarment
Significant Deficiency in Internal Control over Compliance
Criteria: The Uniform Guidance, Section 200.303 Internal Controls, requires the non-federal entity
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
terms and conditions of the federal award.
Non-federal entities are also prohibited from contracting with or making subawards under covered
transactions to parties that are suspended or debarred. "Covered transactions" 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 other
criteria as specified in 2 CFR section 180.220.
When a non-federal entity enters into a covered transaction with an entity at a lower tier, the
nonfederal 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
transaction. This verification may be accomplished by (1) checking the Excluded Parties List System
(EPLS) maintained by the General Services Administration (GSA) and available at
https://www.sam.gov/portal/public/SAM/, (2) collecting a certification from that entity, or (3)
adding a clause or condition to the covered transaction with that entity.
Condition: We tested compliance and internal controls over suspension and debarment and noted
five vendors with fiscal year 2019 expenditures over $25,000, in which there was no
documentation to support a System of Award Management (SAM) verification was performed to
determine if the entity was suspended or debarred.
Cause: There is a lack of oversight, awareness, or understanding of all of the specific requirements
under the Uniform Guidance and applicable CFR sections. Controls were not adequately designed
to ensure compliance with all of these requirements.
Effect: Failure to provide documentation of performance of the SAM's verification being performed
may result in disallowed cost. In addition, a lack of specific policies increases the overall risk that
employees are not aware of the requirements with contracting and awarding contracts to lower
tier entities.
Questioned Costs: None reported
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
2019-005
Context/Sampling: All vendors with fiscal year 2019 expenditures over $25,000, which totaled six,
were selected for suspension and debarment testing.
Repeat Finding from Prior Years: No
Recommendation: We recommend that management maintain adequate supporting
documentation and records to document history and methods of procurement and the procedures
performed to comply with the Uniform Guidance.
Views of Responsible Officials: We agree with the auditor's comments. The City of Dubuque Finance
Department and Transportation Services Departments have experienced significant staff turnover,
including all management staff, in the past twelve months. The following action will be taken to
improve the situation. A budget/financial analyst was hired on January 28, 2020 to focus on grants
and develop a process to assist departments with grant management and reporting. This new
position will also attend specialized grant training. The Finance Department will incorporate
suspension and debarment checks into the procurement process to ensure compliance with grants.
In addition, the Finance Department will train departments on the process of suspension and
debarment checks related to grants.
US Department of Housing and Urban Development
CFDA # 14.272 National Disaster Resilience Competition (CDBG-NDR)
Federal Award Numbers 13-NDRI-001 and 13-NDRI-011 for the fiscal year ended June 30, 2019
Matching, Level of Effort, Earmarking and Reporting
Material Weakness in Internal Control over Compliance
Criteria: 2 CFR Section 200.306 states that the recipient or subrecipient must meet all federal
matching requirements, including recording and reporting verifiable and accurate documentation.
Condition: The City did not have proper controls in place to document or track and report matching
funds.
Cause: Management failed to implement a system to track and report matching funds.
Effect: Without a formal structure in place to monitor matching funds, the City was unable to
accurately document and report the matching requirement.
Questioned Costs: None.
Context/Sampling: A non -statistical sample of 4 reports out of 11 reports were selected for testing.
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part III: Federal Award Findings and Questioned Costs: (continued)
Repeat Finding from Prior Year(s): No
Recommendation: We recommend the City perform additional review procedures relating to
matching funds and reporting.
Views of Responsible Officials: We agree with the auditor's comments. The following action will be
taken to improve the situation. Two employees are responsible for preparing and then submitting
reports on expenditures for the grant. The first prepares the report based on the financial reporting
system, the second employee then takes that information and loads it into the State reporting
system. There was not an additional step that required review that the submission matched the
information provided to that employee. The City of Dubuque now requires the State submission
report be reviewed for accuracy by a separate employee and recorded as reviewed by that
employee be signature and placement into the draw folder.
Part IV: Other Findings Related to Required Statutory Reporting:
2019-IA-A Certified Budget — Disbursements during the year ended June 30, 2019 did not exceed the budget
by function.
2019-IA-B Questionable Expenditures — We noted no expenditures that we believe may not meet the
requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979.
2019-IA-C Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
2019-IA-D Business Transactions — Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and
Business Connection
Transaction
Description
Amount
Mike Kerth, City employee, spouse is Supplies $ 19,263
co-owner of Steve's Ace Hardware
Riley Fairchild, City employee, spouse is
owner of Fairchild Business Coaching
Kevin Esser, City employee, spouse is
Janice Esser
Gina Hodgson, City employee,
spouse is Bob Hodgson
Services
Rehab Grant
Crop Cover
12,695
10,000
990
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part IV: Other Findings Related to Required Statutory Reporting (continued):
2019-IA-E
In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transaction with Gina Hodgson
does not appear to represent conflict of interest since the total transaction was less than $1,500
during the fiscal year. The transactions with Mike Kerth, Riley Fairchild, and Kevin Esser may
represent a conflict of interest since they were not entered into through competitive bidding in
accordance with Chapter 362.5(3)(d) of the Code of Iowa.
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.
2019-IA-F Council Minutes — No transactions were found that we believe should have been approved in the
Council minutes but were not.
2019-IA-G
2019-IA-H
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.
Revenue Debt — The Stormwater Utility revenue capital loan notes include a requirement for the
Utility to maintain rates in each year for the payment of the expenses of the Utility and to meet
principal and interest on the notes. In fiscal year 2019, the net revenues of the Utility were less
than the current year debt service requirement on the notes.
No instances of non-compliance with the provisions of the Sewage Disposal Works or Water Utility
revenue debt resolutions were noted.
Recommendation — The City should review the debt covenant requirements and contact their bond
consultants.
Response — We agree with the auditor's comments. When the City of Dubuque issued Series 2015B
State Revolving Fund loan, the dedicated source of repayment is from the flood mitigation fund
(sales tax increment). The required coverage is being provided from sales tax increment. At the
date of issuance, it was intended that if the flood mitigation fund has a sufficient balance to
provide debt payments, the Series 2015B State Revolving Fund Loan could be excluded from the
debt covenant calculation of stormwater revenue bonds. However, the loan documents for the
Series 2015B State Revolving Fund Loan did not reflect excluding the series from the bond covenant
calculation as intended. The following action will be taken to improve the situation. City of
Dubuque staff have contacted the Iowa Finance Authority to amend the loan agreement for the
Series 2015B State Revolving Fund loan. The Iowa Finance Authority has agreed to a loan
amendment. The City of Dubuque will meet surety bond coverage for future fiscal years after the
loan is amended.
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2019
Part IV: Other Findings Related to Required Statutory Reporting (continued):
2019-IA-I
2019-IA-J
2019-IA-K
2019-IA-L
Annual Urban Renewal Report — The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1. However, we noted
instances in which TIF debt balances did not reconcile with City records.
Recommendation — The City should implement additional preparation and review procedures
relating to the Annual Urban Renewal Report.
Response — We agree with the auditor's comments. The City of Dubuque Finance Department has
experienced significant staff turnover, including all management staff, in the past twelve months.
The following action will be taken to improve the situation. Additional staff will be trained on
preparing the Annual Urban Renewal Report so that an internal review can take place prior to
submitting the report to the State of Iowa.
Tax Increment Financing — Chapter 403.19 of the Code of Iowa provides a municipality shall certify
indebtedness to the County Auditor. While performing our audit procedures, we noted instances in
which TIF debt balances did not reconcile with City records.
Recommendation — The City should implement additional preparation and review procedures
relating to the annual TIF Debt Certification to the County.
Response — We agree with the auditor's comments. The City of Dubuque Finance Department has
experienced significant staff turnover, including all management staff, in the past twelve months.
The following action will be taken to improve the situation. Additional staff will be trained on
preparing the Tax Increment Financing certification of indebtedness so that an internal review can
take place prior to submitting the report to Dubuque County.
Solid Waste Tonnage Fees Retained — No instances of non-compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 4556.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
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.
EideBailly®
CPAs & BUSINESS ADVISORS
March 30, 2020
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the financial statements of the City of Dubuque, Iowa (City) as of and for the year ended
June 30, 2019, and have issued our report thereon dated March 30, 2020. 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 us,
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.
The financial statements of Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau,
discretely presented component units, were not audited in accordance with Government Auditing Standards,
and accordingly, this report does not extend to those financial statements.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance
As communicated in our letter dated June 3, 2019, our responsibility, as described by professional standards,
is to form 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 and to express an opinion on whether the City
complied 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. Our audit of the financial
statements and major program compliance 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 the City solely for the purpose of
determining our audit procedures and not to provide any assurance concerning such internal control.
What inspires you, inspires us. I eidebailly.com
1545 Associates Dr., Ste. 101 Dubuque, IA 52002-2299 I T 563 556 1790 I F 563.557.7842 EOE
Our responsibility, as prescribed by professional standards as it relates to the audit of the City's major federal
program compliance, 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. An audit of major program
compliance includes consideration of internal control over compliance with the types of compliance
requirements referred to above as a basis for designing audit procedures that are appropriate in the
circumstances 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, as a part of our major program compliance audit, we considered internal control
over compliance for these purposes and not to provide any assurance on the effectiveness of the City's
internal control over compliance.
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 Government Auditing Standards dated March 30,
2020. We have also provided our comments regarding compliance with the types of compliance requirements
referred to above and internal controls over compliance during our audit in our Independent Auditor's Report
on Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required
by the Uniform Guidance dated March 30, 2020.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the
engagement, if applicable, have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in Note 1 to the financial statements. There have
been no initial selection of accounting policies and no changes in significant accounting policies or their
application during year ended June 30, 2019. 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.
2
Significant Accounting Estimates
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 management's current judgments.
The most sensitive accounting estimates affecting the financial statements are health insurance and worker's
compensation liabilities, total OPEB 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 but not reported liabilities in determining that they
are reasonable in relation to the financial statements taken as a whole.
Management's estimate of total OPEB liability, related deferred outflows of resources, and OPEB
expense are based on a calculation of actuarially determined contributions for health insurance
benefits. We evaluated they 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.
Management's estimates 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 determining 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 and total OPEB liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the
audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, 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. Further, professional standards require us to also
communicate the effect of uncorrected misstatements related to prior periods on the relevant classes of
transactions, account balances or disclosures, and the financial statements as a whole. There were no
uncorrected financial misstatements identified.
3
The following misstatements that we identified as a result of our audit procedures were brought to the
attention of, and corrected by, management:
Equity Increase (Decrease)
Fund
Governmental Activities
To reduce capital assets
To increase capital assets
Governmental/
Business -type
$ (2,034,178)
183,393
General Fund
To increase accounts receivable 169,782 169,782
To reduce notes receivable (246,293) (246,293)
To record property taxes payable (79,289) (79,289)
Tax Increment Financing Fund
To reduce other financing sources (material misstatement) (300,000) (300,000)
To reduce accounts receivable (material misstatement) (175,675) (175,675)
Community Development Fund
To increase grant receivable (material misstatement) 1,356,194 1,940,746
To record inventory (material misstatement) 129,232 129,232
To reduce notes receivable (23,961) (23,961)
Water Utility Fund
To record long-term debt for bond issuance costs
To record capital assets
Stormwater Utility Fund
To reduce grant receivable
(81,910)
205,024
(81,910)
205,024
(1,134,435) (1,134,435)
Sales Tax Construction Fund (nonmajor fund)
To reduce accounts payable 178,500
Street Construction Fund (nonmajor fund)
To record intergovernmental receivable
To reduce accounts payable
Refuse Collection Fund (nonmajor fund)
To reduce accounts payable
Transit System Fund (nonmajor fund)
To remove unavailable revenue (material misstatement)
Flexsteel Decommission Fund (agency fund)
To increase cash and reduce notes receivable by $300,000
313,710
87,858 87,858
80,487 80,487
1,175,502 1,175,502
The original Schedule of Expenditures of Federal Awards also required adjustments of over $4,000,000 to
program expenditures.
4
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 or the auditor's report. No such disagreements arose
during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management that are included in the management
representation letter dated March 30, 2020.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, 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 that may affect the risks of material misstatement. None of the matters
discussed resulted in a condition to our retention as the City's auditors.
This report is intended solely for the information and use of the Mayor, City Council, and management of the
City of Dubuque, Iowa, and is not intended to be and should not be used by anyone other than these specified
parties.
Sincerely,
EIDE BAILLY LLP
Dubuque, Iowa
5
hi
CITY OF DUBUQUE
AUDIT PRESENTATION TO THE CITY COUNCIL
FOR YEAR ENDED JUNE 30, 2019
FISCALYEAR 2019 CERTIFIED ANNUAL
FINANCIAL REPORT
EideBailly
• Financial audit performed annually
• Required by the Municipal Oversight Law and governmental auditing standards
• Examination of City's financial records
• Conducted in accordance with generally accepted auditing standards
• Report rendered by an independent auditor of how appropriately financial
statements depict its financial condition and results of its operations
• Performed by persons not in any way affiliated with the City in order to ensure
complete objectivity and professionalism
TYPES OF INDEPENDENTAUDITOR'S
OPINIONS
EideBailly
Unmodified Opinion —The statements present fairly the financial position and results of
operations of the government unit on a basis consistent with prior years. This is the so called
"clean opinion."
Modified Opinion —The opinion is like the above but with certain exceptions to generally
accepted accounting principles which are clearly explained in the opinion.
Adverse Opinion —This "bad opinion" states that the financial statements do not fairly
present the financial position and the results of operation of the governmental unit. The
opinion would include the reasons for the adverse opinion.
Disclaimer of Opinion —The auditor cannot render an opinion usually because the financial
records are incomplete or the scope of the audit is too restrictive.
COMPLIANCE AUDIT
EideBailly
Auditors perform compliance audits in which the auditor reviews operations in terms of
compliance with various laws and regulations regarding grants and financial operations
Compliance audits have always been a vital part of governmental audits.
BENEFITS OF AN AUDIT
EideBailly
• The audit provides a professional opinion of the financial condition of the government unit.
• Audited financial statements provide reliable financial information to evaluate the financial
health and stability of the governmental unit.
• Recommendations to strengthen and improve the management and efficiency of the
governmental unit.
• Ensure that the local government is in compliance with all applicable legal provisions.
AUDIT RESULTS
EideBailly
• Auditors' Opinion on Financial Statements — Unmodified
• Sometimes referred to as a "clean" audit. This is the highest level of assurance auditors can
provide over financial statements.
• Financial Statements are materially accurate
• No disagreements with auditors
• All proposed audit adjustments were made
GOVERNMENT -
WIDE SUMMARY
• Governmental activities increased the City's net
position by $12.2M.
• Operating and capital grants and contributions
increased by $4.9M
• Overall revenues increased by $3.4M, while
expenses decreased by $2.9M (excluding
transfers out to business type activities)
GOVERNMENT -
WIDE SUMMARY
• Business -type activities increased the City's net
position by $13.4M
• Charges for services increased by $496k.
• Total expenses increased by $2.1M.
• Operating and capital grants and contributions
saw an increase of $779k.
•
GENERAL FUND REVENUE
The General Fund is the City's primary
operating fund. It accounts for all financial
resources of the general government,
except those required to be accounted for
in another fund.
Interest, Fines &
Forfeitures, & Other,
4%
Charges for Service
20%
Intergovernmental, 3%
1
Licenses & Permits,
Gaming, 14%
3%
o
TAX REVENUE
3YEAR HISTORY
Thousands
$34,821
35,000
30,000
25,000
20,000
15,000
10,000
5,000
■ Property Tax
■ Franchise Fee
■ Local Option Sales Tax
Hotel/Motel
■ Backfill
■ Pari-Mutuel
$33,558 $33,381
2019 2018 2017
2019 2018 2017
$22,288 $21,244 $20,679
$5,072 $4,833 $4,559
$4,470 $4,305 $4,445
$2,113 $2,286 $2,822
$851 $844 $856
$27 $36 $20
•
GENERAL FUND REVENUE
3YEAR HISTORY $61,805
Dollars in 000s
$60,000 /.
$50,000
$40,000
$30,000
$20,000
$10,000
$-
$57,685 $57,121
2019 2018 2017
Taxes $ 34,821 $ 33,558 $ 33,381
Licenses & Permits $ 1,620 $ 1,642 $ 1,506
Intergovernmental $ 1,783 $ 1,204 $ 1,609
Charges for Services $ 12,216 $ 11,310 $ 10,549
Interest, Fines & Forfeitures, & Other $ 2,656 $ 1,909 $ 1,978
Gaming $ 8,709 $ 8,062 $ 8,098
•
GENERAL FUND
EXPENDITURES
Community &
Economic
Development, 7%
Culture & Recreat
21%
Health & Social
Services, 2%
General Government,
10%
I
Public Works, 11%
Debt Service, 0%
Capital Projects, 1%
Public Safety, 48%
o
GENERAL FUND
EXPENDITURES
THREEYEAR HISTORY
Dollars in 000s
$60,000
$50,000
$40,000
$30,000
$20,000
$10,000 V
so
$57,584
58,889
2019 2018 2017
■ Public Safety
■ Health & Social Services
■ Community & Economic Development
■ Debt Service
Public Safety
Public Works
Health & Social Services
Culture & Recreation
Community & Economic Development
General Government
Debt Service
Capital Projects
2019
$28,802
$6,323
$1,036
$12,749
$3,979
$6,011
$98
$401
■ Public Works
■ Culture & Recreation
■ General Government
■ Capital Projects
2018 2017
$28,569 $29,091
$5,751 $6,351
$844 $858
$12,482 $12,022
$3,736 $3,788
$6,202 $6,780
$0 $0
$0 $0
•
COMPARISON OF
GENERAL FUND
BALANCES
(Dollars in 000s)
$19,276
2019-33.21%
$15,193
2018-26.38% 2017-21.37%
■ Annual Expenditures* ■ Unassigned Fund Balance
*Annual expenditure figure exclude transfers to other funds
•
NET INVESTMENT IN
CAPITAL ASSETS
Dollars in 000s
400,000
350,000
300,000
250,000
200,000
150,000
100,000
50,000
168,206
2019 2018
■ Governmental Activities ■ Business -Type activites
375,579
2017
164,448
•
UNFUNDED LEGACY COSTS
(Dollars in OOOs)
60,000
50,000
40,000
30,000
20,000
10,000
0
50,052
6,121
2019
Retiree Healthcare (OPEB) Liability
50,371
5,110
i
2018
■ Pension Liability (IPERS/MFPRSI)
2017
Legacy costs are ongoing costs that arise from spending that does not increase revenue.
•
AUDIT RESULTS
EideBailly
• Auditors' Opinion on Financial Statements — Unmodified
• Sometimes referred to as a "clean" audit. This is the highest level of assurance auditors can
provide over financial statements.
• Financial Statements are materially accurate
• No disagreements with auditors
• All proposed audit adjustments were made
• Audit performed yearly
• Audit required by Iowa State Code
COMPLIANCE AUDIT RESULTS
EideBailly
• 3 level of audit deficiencies
• Material weakness — highest level, material adjustments identified
• Significant deficiency — does not rise to material level but still something those charged
with governance should be aware of
• Control deficiency — lowest level, compensating controls in place to mitigate likelihood of a
material misstatement
• Previous audit results
• 2018 — unmodified, no material weaknesses or significant deficiencies
• 2017—unmodified
• 1 material weakness over financial reporting
• 3 significant deficiencies over federal awards
• 2016 — unmodified
• 3 material weaknesses over financial reporting
• 2 significant deficiencies over federal awards
COMPLIANCE AUDIT RESULTS
EideBailly
• Report on Internal Control Over Financial Reporting and on
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
• Material weakness — Material audit adjustments over balance sheet and
schedule of federal awards
• Caused by lack of internal controls due to transition of consolidating
Finance and Budget departments along with employee turnover
• Changes made — staff recruitment and new positions
• No significant deficiencies or material noncompliance were identified
CAUSE OF MATERIAL ADJUSTMENTS
EideBaillyr
• Significant Finance Staff Turnover, including Finance Director (3/29/19) and
Assistant Finance Director (2/1/19)
• Other staff changes include Payroll Specialist, Accountant promoted to Assistant
Public Works Director, Finance Manager, Budget Manager, City Treasurer
(twice), Payroll Accountant
• Highly competitive job market lead to increased employee turnover
• Finance and Budget Departments were consolidated on 3/29/19
• Budget and Audit and Financial Statements deadlines are at the same time
• Temporary internal assistance with the Schedule of Expenditures of Federal
Awards
• Temporary external assistance with preparation of the financials
CHANGES MADE
• Employees with government experience hired
• Residency policy change allowed for expanded candidate pool
• Cassie Ross hired as Assistant Finance Director 4/1/20
• Certified Public Accountant
• 7 Years experience as RSM Auditor with focus in governmental entities
• Schedule of Expenditure Federal Awards
• Certified Annual Financial Report
• Government Accounting
• Financial Statement Relationship Analysis/Analytical Review
• Journal Entries
• Implementing New Accounting Standards
• Bachelor's Degree in Accounting and Management from Loras College
EideBaillyr
CHANGES MADE
• Teresa Putchio hired as Senior Payroll Accountant 3/30/20
• Finance Director and Payroll Accountant for Grant County for 17 years
• Payroll
• Accounts Payable
• Financial Reporting
• Audit
• Bachelor's Degree in Accounting from Loras College
EideBaillyr
•
CHANGES MADE
• New Position Created to Focus on Grants
• Develop a full inventory of all City grants
• Attend grant training
• Review grant contracts
• Meet with departments
• Develop best practices
• Provide grant tools
EideBaillyr
CHANGES MADE
• Elena Fox hired 1/28/20 as Budget/Financial Analyst Focused on grants
• Project Manager for Advanced Data -Comm
• Intelligence Analyst, Sergeant for United States Marine Corps
• Implemented, constructed, and maintained projects
• Budgets and Reporting
• Operating Procedures
• Bachelor's Degree in Business Administration from Campbell University
• Master's in Business Administration from the University of Dubuque
EideBaillyr
0
CHANGES MADE
• Kayla Morrison hired as Budget/Financial Analyst on 04/02/20
• City of Asbury as Parks and Recreation Director
• Budget development
• Goals and policies
• Quarterly newsletter for residents
• Assisting with utility billing, payroll and bank reconciliations
• City of Clive
• City of West Des Moines.
EideBaillyr
•
COMPLIANCE AUDIT RESULTS (CONTINUE[ EideBailly
• Auditors' Opinion on compliance for major programs
• Unmodified for all major federal programs except for Community Development Block
Grants/Entitlement Grants, which was qualified
• Independent Auditors' Report on Compliance for Each Major Federal Program,
Report on Internal Control, and Report on the Schedule of Expenditures of
Federal Awards Required by the Uniform Guidance
• Material weaknesses
• Material weakness in internal control and material noncompliance over CBDG allowable
costs/cost principles requirement
• Material weakness in internal control and material noncompliance over CBDG reporting
requirement
• Material weakness over internal controls for Housing and Urban Development Resiliency grant
CAUSE OF MATERIAL WEAKNESSES
EideBailly
• CDBG payroll expenditures did not have appropriate backup that identified
time worked in the program and resulted in questioned costs
• 2 CDBG quarterly reports not filed with Housing and Urban Development
• HUD Resiliency Grant — lack of review of City matching funds reported to the
State of Iowa
0
CHANGES MADE
EideBailly
• CDBG funded employees are tracking time in 30-minute increments based on
actual activities performed in a day on timesheets which is supported by
outlook calendar attachments
• Time study will be done, and documentation will go into employee payroll files
for support
• Multiple employees receive alerts when reports and due and hold each other
accountable to get reports submitted timely. There has also been multiple levels
of review implemented over these reports.
• City staff is now reviewing the match being report by ECIA before and after
report submitted to the state
00.->
COMPLIANCE AUDIT RESULTS (CONTINUE[ EideBailly
• Independent Auditors' Report on Compliance for Each Major Federal Program,
Report on Internal Control, and Report on the Schedule of Expenditures of
Federal Awards Required by the Uniform Guidance (continued)
• Significant deficiency
• Federal Transit — Formula Grants internal control deficiency related the procurement, suspension
and debarment requirement
• Due to material weaknesses identified, the City will be a high -risk auditee for the next 2
years
• Auditors will have to perform additional testing due to this
• Granting agencies may ask for additional information regarding this
•
CAUSE OF MATERIAL WEAKNESSES
EideBailly
• The suspension and debarment process protects the federal government from
fraud, waste and abuse by using a number of tools to avoid doing business with
non -responsible contractors.
• Suspension - Immediate need, temporary measure, twelve-month limit, usually
used pending the completion of investigation or legal proceedings, based upon
adequate evidence, usually an indictment
• Debarment - usually three years in length, based upon a preponderance of the
evidence, usually a conviction
• System for Award Management (Sam.gov) is used to search for vendors that are
suspended or debarred
CAUSE OF MATERIAL WEAKNESSES
EideBailly
• Suspension and Debarment verifications not performed for Transit purchases of
$25,000 or more
CHANGES MADE
EideBailly
• Suspension and debarment verifications on SAM.gov will be completed on
frequently used vendors at beginning of fiscal year
• Suspension and debarment verifications will be completed on all new vendors
• Finance is reviewing possibility of building in suspension/debarment
verifications in the paperless accounts payable process
Feb
'19
Finance and Budget
Consolidated;
Budget Director
becomes Finance &
Budget Director
3/29/19
May
'19
o�
y
you fiezt
t. trr06
VQ<rt
47
Feb
'20
Orange = exiting the dept
Green = new employee
`ryo ``ryo
a o• •9 B
co
coo ta
*a
tzr
..0 �0
. , C�(tr Apr
V �` `20
July
o
Finance Dept Staffing Turnover
Dec
'19
Masterpiece on the Mississippi
TO: Mike Van Milligen, City Manager
Jenifer Larson, Finance Director
FROM: Renee Tyler, Director of Transportation
RE: Transportation Services - Eide Bailly Audit
DATE: April 15, 2020
Dubuque
All -America City
2007.2012.2013
2017*2019
Introduction
The purpose of this memo is to provide a response to the findings from the Eide Bailly
Audit respective to the Transportation Services department.
Discussion
As noted in the audit Transportation Services underwent changes in senior leadership.
Certain reporting requirements were not met during the course of the change. The
result was a lack of compliance for verifying transactions over $25,000. The verification
process includes 1. Checking the Excluded Parties List System via General Services
Administration's SAM.GOV portal, 2. Collecting a certification from the vendor, or 3.
Adding a clause or condition to the covered transition with the vendor.
Recommended Actions
As a result of the audit Transportation Service is performing the checks prior to the award of a
bid. Additionally, per the advice of the Assistant Finance Director, the department will review
purchases at the end of the fiscal year. A verification check will be performed on individual
vendors with purchases exceeding $25,000 annually.
Last Finance suggested implementing a check and balance notification to help grantee
departments stay on task with required vendor verification.
How work in CDBG was completed prior to February 2019
Housing
Financial
Specialists
(2)
♦ y
Rehab
Supervisor
Community
Development
Specialist
There was not a segregation of duties prior to February 2019; the Community Development
Specialist oversaw completing and submitting work with no oversight. All contact from HUD
was filtered through the Community Development Specialist, so checks and balances were not
in place.
How work in CDBG is completed March 2019 Forward
Housing &
Community
Development
Director
I I 1
Community
Development
Specialist
1 I 1
Housing Financial
Specialist
Rehabilitation
Supervisor
aCommunity
Development
Advisory
Commission
Housing Financial
Specialist
To segregate duties and oversite of CDBG, the Community Development Advisory Commission
(CDAC) adopted all reporting due dates into their bylaws. Those deadlines are required to be
placed on the agenda, with the receipt of submission from HUD, by a city employee who is
removed from the preparation of the reports. Additionally, HUD is provided two city employees
as primary contacts for updates and notifications for reporting due dates (The Housing &
Community Development Director will always be a contact).
Segregating the preparation, the submission and the communication with HUD between many
employees and the Commission allows all required deadlines to be met. If for any reason the
required reports have not been submitted, many facets of the organization would be aware of
the situation so it can be remedied expediently.
*Note this is not an organization chart but a process and information flow chart. To further segregate
duties, no employees report to the Community Development Specialist. That position monitors CDBG
compliance with regulations.