Proceedings to Direct Advertisement for Sale of $29,395,000 Generail Obligation Bonds and $12,940,000 General Obligation Bonds Copyrighted
April 19, 2021
City of Dubuque Action Items # 7.
City Council Meeting
ITEM TITLE: Proceedings to DirectAdvertisementfor Sale of$29,395,000 Tax-
Exempt General Obligation Bonds, Series 2021 A and $12,940,000
Taxable General Obligation Bonds, Series 2021 B,Approval of the
Preliminary Official Statement, and Approval of Electronic Bidding
Procedures
SUM MARY: City Manager recommending City Council approval of the suggested
proceedings for approving the advertisement for sale, preliminary Official
Statement, and electronic bidding procedures for the $29,395,000 Tax-
Exempt General Obligation Bonds, Series 2021 A and $12,940,000
Taxable General Obligation Bonds, Series 2021 B.
RESOLUTION Directing the Advertisement for sale of$29,395,000*
(subject to adjustment per terms of offering) General Obligation Bonds,
Series 2021A, and approving electronic bidding procedures and
distribution of preliminary official statement
RESOLUTION Directing the advertisement for sale of$12,940,000*
(subject to adjustment per terms of offering)taxable General Obligation
Bonds, Series 2021 B, and approving electronic bidding procedures and
distribution of preliminary official statement
SUGGESTED Suggested Disposition: Receive and File;Adopt Resolution(s)
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
Series 2021A Resolution Directing the Advertisement
for Sale and Approving Electronic Bidding Procedures Resolutions
and Distribution of Preliminary Official Statement
Series 2021 B Resolution Directing the Advertisement
for Sale and Approving Electronic Bidding Procedures Resolutions
and Distribution of Preliminary Official Statement
Combined Notice of Bond Sale Series 2021A and Supporting Documentation
Series 2021 B
Bond Counsel Letter Supporting Documentation
GO Series 2021A and 2021B Preliminary Official Supporting Documentation
Statement
dubuque
THE CITY OF �
DU B E ui•IVeric�eil�
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Maste iece on the Mississi i z°°'"�°lz.z°13
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Direct Advertisement for Sale of $29,395,000 Tax-Exempt
General Obligation Bonds, Series 2021A and $12,940,000 Taxable
General Obligation Bonds, Series 2021 B, Approval of the Preliminary
Official Statement, and Approval of Electronic Bidding Procedures
DATE: April 12, 2021
Director of Finance and Budget Jennifer Larson recommends City Council approval of
the suggested proceedings for approving the advertisement for sale, preliminary Official
Statement, and electronic bidding procedures for the $29,395,000 Tax-Exempt General
Obligation Bonds, Series 2021A and $12,940,000 Taxable General Obligation Bonds,
Series 2021 B.
The $23,395,000 Tax-Exempt Series 2021A bonds will provide $1,295,000 for
Chavenelle Road Improvements, $33,000 for Clock Tower Plaza Rehab, $500,000 for
Jackson Park Amenities and Restroom, $251,028 for New Enterprise Resource
Planning System (ERP), $580,084 for Ladder and Pumper Replacements, $248,924 for
Fire Headquarters HVAC Replacement, $798,942 for Transit Vehicle Replacements,
$25,375,000 to refund Exempt General Obligation Bond Series 2012A $2,665,000,
2012B $4,515,000, 2012E $1,965,000, 2012H $1,410,000, and 2014B $14,820,000 for
estimated interest savings of $2 million over the life of the bonds, $301,226 for issuance
fees, and $11,796 for capitalized interest.
The $12,940,000 Taxable Series 2021 B bonds will provide $406,000 for River pock
Expansion, $872,000 for property acquisition and design of a new Downtown Parking
Ramp, $11,490,000 to refund Taxable General Obligation Bond Series 2012C
$4,465,000, 2012F $140,000, and 2014C $6,885,000 for estimated interest savings of
$822,080 over the life of the bonds and $172,000 for issuance fees.
The bond sale will be held on May 3, 2021 at 10:00 a.m. The results will be brought to
the May 3, 2021 City Council meeting.
A draft copy of the preliminary Official Statement prepared by Ahlers and Cooney, P.C.
and City staff is enclosed. Careful review of the draft Official Statement by appropriate
City staff and members of the City Council is an important step in the offering of the
Bonds for sale to the public. The U.S. Securities and Exchange Commission (the
"Commission") has stated that "issuers are primarily responsible for the content of their
disclosure documents and may be held liable under the federal securities laws for
misleading disclosure." In several recent enforcement proceedings, the Commission
has made clear that it expects public officials to generally review disclosure documents
in light of their unique knowledge and perspectives on the issuer and its financial
circumstances, or else to ensure that appropriate procedures are in place to provide the
necessary review.
Rule 15c2-12 of the Commission requires prospective purchasers of the Bonds to
obtain and review an official statement that has been "deemed final" by the City prior to
submitting a bid to purchase the Bonds. For this purpose, the Official Statement may
omit certain information that is dependent upon the pricing of the issue (such as interest
rates, bond maturities and redemption features), but should otherwise be accurate and
complete.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
�I:/v� �tv�r
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
2
Dubuque
THE CITY OF �
Du B E ���.�����
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Maste iece on the Mississi i z°°'"Z°lz.z°13
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TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
SUBJECT: Proceedings to Direct Advertisement for Sale of $29,395,000 Tax-Exempt
General Obligation Bonds, Series 2021A and $12,940,000 Taxable
General Obligation Bonds, Series 2021 B, Approval of the Preliminary
Official Statement, and Approval of Electronic Bidding Procedures
DATE: April 12, 2021
INTRODUCTION
The purpose of this memorandum is to recommend the advertisement for the sale of the
$29,395,000 Tax-Exempt General Obligation Bonds, Series 2021A and $12,940,000
Taxable General Obligation Bonds, Series 2021 B, approval of the Preliminary Official
Statement, and approval of the electronic bidding procedures.
DISCUSSION
On April 5, 2021, a public hearing was held on a bond issuance not to exceed
$46,250,000 General Obligation Bonds, not to exceed $700,000 General Obligation
Bonds, not to exceed $700,000 General Obligation Bonds, not to exceed $600,000
General Obligation Bonds, not to exceed $950,000 General Obligation Urban Renewal
Bonds. The not to exceed amounts include a contingency for fluctuations in the bond
market for interest rates, bond issuance costs and changes in project costs.
The $23,395,000 Tax-Exempt Series 2021A bonds will provide $1,295,000 for
Chavenelle Road Improvements, $33,000 for Clock Tower Plaza Rehab, $500,000 for
Jackson Park Amenities and Restroom, $251,028 for New Enterprise Resource
Planning System (ERP), $580,084 for Ladder and Pumper Replacements, $248,924 for
Fire Headquarters HVAC Replacement, $798,942 for Transit Vehicle Replacements,
$25,375,000 to refund Exempt General Obligation Bond Series 2012A $2,665,000,
2012B $4,515,000, 2012E $1,965,000, 2012H $1,410,000, and 2014B $14,820,000 for
estimated interest savings of $2 million over the life of the bonds, $301,226 for issuance
fees, and $11,796 for capitalized interest.
The $12,940,000 Taxable Series 2021 B bonds will provide $406,000 for River pock
Expansion, $872,000 for property acquisition and design of a new Downtown Parking
Ramp, $11,490,000 to refund Taxable General Obligation Bond Series 2012C
$4,465,000, 2012F $140,000, and 2014C $6,885,000 for estimated interest savings of
$822,080 over the life of the bonds and $172,000 for issuance fees.
Although the City is selling General Obligation Bonds to support the projects,
repayments of Series 2021A will be local option sales tax, Dubuque Industrial Center
west TIF and Greater powntown TIF. Series 2021 B is repaid by local option sales tax,
gaming revenue, sanitary sewer user fees, water user fees, parking user fees, Airport
Passenger Facility Charges, Dubuque Industrial Center tax increment revenue, and
Greater powntown tax increment revenue.
The bond sale will be held on May 3, 2021. A letter from attorney Kristin Billingsley
Cooper detailing information on the bond advertisement is enclosed.
A draft copy of the preliminary Official Statement prepared by Ahlers and Cooney, P.C.
and City staff is enclosed. Careful review of the draft Official Statement by appropriate
City staff and members of the City Council is an important step in the offering of the
Bonds for sale to the public. The U.S. Securities and Exchange Commission (the
"Commission") has stated that "issuers are primarily responsible for the content of their
disclosure documents and may be held liable under the federal securities laws for
misleading disclosure." In several recent enforcement proceedings, the Commission
has made clear that it expects public officials to generally review disclosure documents
in light of their unique knowledge and perspectives on the issuer and its financial
circumstances, or else to ensure that appropriate procedures are in place to provide the
necessary review.
Rule 15c2-12 of the Commission requires prospective purchasers of the Bonds to
obtain and review an official statement that has been "deemed final" by the City prior to
submitting a bid to purchase the Bonds. For this purpose, the Official Statement may
omit certain information that is dependent upon the pricing of the issue (such as interest
rates, bond maturities and redemption features), but should otherwise be accurate and
complete.
RECOMMENDATION
I respectfully recommend the adoption of the enclosed resolutions to approve the
advertisement for sale of the bonds, approve electronic bidding procedures, and
approve the preliminary official statement.
JML
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Cassie Ross, Assistant Director of Finance
2
ITEMS TO INCLUDE ON AGENDA
CITY OF DUBUQUE, IOWA
$29,395,000* (Subject to Adjustment per Terms of Offering) General Obligation Bonds, Series
2021A
• Resolution directing the advertisement for sale and approving electronic bidding
procedures and Distribution of Preliminary Official Statement.
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
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April 19, 2021
The City Council of the City of Dubuque, State of Iowa, met in regular session, via
electronic means, Council having determined that it is impossible and impractical for all
members of the Council, other City personnel, and members of the public to be physically
present at this meeting due to the COVID-19 pandemic, at 6:30 P.M., on the above date. There
were present Mayor Roy D. Buol, in the chair, and the following named Council Members:
Cavanagh, Farber, Jones, Resnick, Roussell, Sprank
Absent: ___________________________________________
Vacant: ___________________________________________
* * * * * * *
- 2 -
Council Member Resnick introduced the following Resolution entitled "RESOLUTION
DIRECTING THE ADVERTISEMENT FOR SALE OF $29,395,000* (SUBJECT TO
ADJUSTMENT PER TERMS OF OFFERING) GENERAL OBLIGATION BONDS, SERIES
2021A, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND DISTRIBUTION
OF PRELIMINARY OFFICIAL STATEMENT" and moved its adoption. Council Member
Jones seconded the Resolution to adopt. The roll was called and the vote was,
AYES: Farber, Cavanagh, Sprank, Buol, Resnick, Jones, Roussell
___________________________________________
NAYS: ___________________________________________
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION DIRECTING THE ADVERTISEMENT FOR
SALE OF $29,395,000* (SUBJECT TO ADJUSTMENT PER
TERMS OF OFFERING) GENERAL OBLIGATION BONDS,
SERIES 2021A, AND APPROVING ELECTRONIC BIDDING
PROCEDURES AND DISTRIBUTION OF PRELIMINARY
OFFICIAL STATEMENT
WHEREAS, the Issuer is in need of funds to pay costs of the opening, widening,
extending, grading, and draining of the right-of-way of streets, highways, avenues, alleys and
public grounds; the construction, reconstruction, and repairing of any street improvements; the
acquisition, installation, and repair of sidewalks, storm sewers, sanitary sewers, water service
lines, street lighting, and traffic control devices; and the acquisition of any real estate needed for
any of the foregoing purposes; the rehabilitation and improvement of City parks and the
acquisition, repair and replacement of facilities, equipment and improvements commonly found
in City parks; equipping the fire department; and refunding or refinancing outstanding
indebtedness of the City, including General Obligation Bonds, Series 2012A, General Obligation
Bonds, Series 2012B, General Obligation Bonds, Series 2012E, General Obligation Urban
Renewal Bonds, Series 2012H, and General Obligation Bonds, Series 2014B, essential corporate
purpose(s), and it is deemed necessary and advisable that General Obligation Bonds, to the
amount of not to exceed $44,500,000 be authorized for said purpose(s); and
WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of
Iowa, this Council has held a public meeting and hearing upon the proposal to institute
proceedings for the issuance of the Bonds, and the Council is therefore now authorized to
proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, the City is in need of funds to pay costs of the acquisition, improvement,
and equipping of the fire station and facilities, general corporate purpose(s), and it is deemed
- 3 -
necessary and advisable that General Obligation Bonds, to the amount of not to exceed $700,000
be authorized for said purpose(s); and
WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000,
and the Bonds for these purposes do not exceed $700,000; and
WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of
Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, the City is in need of funds to pay costs of the construction, renovation,
remodeling, improvement, equipping and repairing of Town Clock Plaza; acquisition and
implementation of computer equipment including financial and utility billing software;
acquisition and equipping of a light duty minibus, general corporate purpose(s), and it is deemed
necessary and advisable that General Obligation Bonds, to the amount of not to exceed $700,000
be authorized for said purpose(s); and
WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000,
and the Bonds for these purposes do not exceed $700,000; and
WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of
Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, the City is in need of funds to pay costs of acquisition and equipping of a
heavy duty fixed route bus, general corporate purpose(s), and it is deemed necessary and
advisable that General Obligation Bonds, to the amount of not to exceed $600,000 be authorized
for said purpose(s); and
WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000,
and the Bonds for these purposes do not exceed $700,000; and
WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of
Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is hereby found and
determined that the various general obligation bonds authorized as hereinabove described shall
be combined for the purpose of issuance in a single issue of $29,395,000* General Obligation
Bonds as hereinafter set forth; and
- 4 -
WHEREAS, in conjunction with its Municipal Advisor, Independent Public Advisors,
LLC, and Disclosure Counsel, the City has caused a Preliminary Official Statement to be
prepared outlining the details of the proposed sale of the Bonds; and
WHEREAS, the Council has received information from its Municipal Advisor evaluating
and recommending the procedure hereinafter described for electronic, facsimile and internet
bidding to maintain the integrity and security of the competitive bidding process and to facilitate
the delivery of bids by interested parties; and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet
communication.
- 5 -
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, STATE OF IOWA:
Section 1. That the receipt of electronic bids by facsimile machine, email and through the
Parity Competitive Bidding System described in the Notice of Sale and Official Statement are
hereby found and determined to provide reasonable security and to maintain the integrity of the
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering at public sale.
Section 2. That General Obligation Bonds, Series 2021A, of City of Dubuque, State of
Iowa, in the amount of $29,395,000* (Subject to Adjustment per Terms of Offering), to be
issued as referred to in the preamble of this Resolution, to be dated June 2, 2021, be offered for
sale pursuant to the published advertisement.
Section 3. That the preliminary Official Statement in the form presented to this meeting
be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of
the Securities and Exchange Commission, subject to such revisions, corrections or modifications
as the Mayor and City Clerk, upon the advice of bond counsel, disclosure counsel, and the City's
Municipal Advisor, shall determine to be appropriate, and is authorized to be distributed in
connection with the offering of the Bonds for sale.
Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least
once, the last one of which shall be not less than four clear days nor more than twenty days
before the date of the sale. Publication shall be made in the Telegraph Herald, a legal
newspaper, printed wholly in the English language, published within the county in which the
Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter
75 of the Code of Iowa, and shall state that this Council, on the 3rd day of May, 2021, at 6:30
P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were
previously received and opened by City Officials at 10:00 A.M. on said date. The notice shall be
in substantially the following form:
- 6 -
(To be published between: April 13 and April 28, 2021)
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State
of Iowa, hereafter described, must be received at the office of the Director of Finance & Budget,
City Hall, 50 West 13th Street, Dubuque, Iowa 52001; Telephone: 563-589-4100 (the "Issuer")
in accordance with the official Terms of Offering, on the 3rd day of May, 2021. The bids will
then be publicly opened and referred for action to the meeting of the City Council in conformity
with the Terms of Offering.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2021A, in the
amount of $29,395,000*, to be dated June 2, 2021 (the "2021A
Bonds"). Bids to be received before 10:00 A.M. C.D.T.; and
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2021B,
in the amount of $12,940,000*, to be dated June 2, 2021 (the
“2021B Bonds”). Bid to be received before 10:00 A.M. C.D.T.
(collectively, the “Bonds”)
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Bidding: Open bids will not be received. Bids will be received in any of the
following methods:
Sealed Bidding: Sealed bids may be submitted and will be received at the office
of the Director of Finance & Budget at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001.
Electronic Internet Bidding: Electronic internet bids will be received at the office
of the Director of Finance & Budget at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001. The bids must be submitted through the PARITY® competitive
bidding system.
Electronic Facsimile/Email Bidding: Electronic facsimile or email bids will be
received at City Hall, Dubuque, Iowa (facsimile number: (563) 589-4149) or the
via email to the City’s Municipal Advisor (tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed
bids will be announced. Sealed bids will then be publicly opened and announced. Finally,
electronic internet bids will be accessed and announced.
- 7 -
Sale and Award: The sale and award of the Bonds will be held at the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa at a meeting of the City Council on the above date
at 6:30 P.M. It’s possible the meeting on May 3, 2021 may be held electronically. Please see the
agenda in advance of the meeting for details on how to access the meeting.
Official Statement: The Issuer has issued an Official Statement of information pertaining
to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid
Form, which is incorporated by reference as a part of this notice. The Official Statement may be
obtained by request addressed to the City Clerk, City Hall, 50 West 13th Street, Dubuque, Iowa
52001; Telephone: (563) 589-4100 or the Issuer's Municipal Advisor, Independent Public
Advisors, LLC, 8805 Chambery Blvd, Suite 300 #114, Johnston, Iowa, 50131, Telephone: (515)
259-8193.
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accordance with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C.,
Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together
with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except
to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not
examine or review or express any opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Dubuque, State of Iowa.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
(End of Notice)
PASSED AND APPROVED this 191h day of April, 2021.
Mayor
ATTEST:
a i6L�� //r/
City Clerk �`
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council. and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this th day of
2021.
z
City Clerk, City of Dubuque, State of Iowa
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s
P r
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,f'
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by full authority from the Council of the
City, I have caused a
NOTICE OF BOND SALE
($29,395,000* (Subject to Adjustment per Terms of Offering) General
Obligation Bonds, Series 2021A)
of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures
a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal
newspaper published at least once weekly, printed wholly in the English language, published
regularly and mailed through the post office of current entry for more than two years and which
has had for more than two years a bona fide paid circulation recognized by the postal laws of the
United States, and has a general circulation in the City, and that the Notice was published in all
of the issues thereof published and circulated on the following date:
Apr,, { e 3'� , 2021.
WITNESS m official signature this A , 2021.
y gn c� � day of �',
a4, �� �C A''* d�
City Clerk, City of Dubuque, State of Iowa
01864056-1\.10422-209
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/23/2021
and for which the charge is 62.58
Subscribed to before me, a Notary Public in aWor
Dubuque County, Iowa,
this 26th day of April, 2021
Nota ublic in and for Dubugt a County, ty, Iowa.
'`- „ JANET K. PAPE
Co�mmWlma Number 199669
W� Comm. Exp. DEC 11, 2M
Ad text : NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds
of the City of Dubuque, State of Iowa, hereafter described,
must be received at the office of the Director of Finance &
Budget, City Hall, 50 West 13th Street, Dubuque, Iowa 52001;
Telephone: 563-589-4100 (the "Issuer") in accordance with the
official Terms of Offering, on the 3rd day of May, 2021. The
bids will then be publicly opened and referred for action to
the meeting of the City Council in conformity with the Terns
of Offering.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2021A, in the amount of
$29,395,000*, to be dated June 2, 2021 (the "2021A Bonds").
Bids to be received before 10:00 A.M. C.D.T.; and
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2021B, in the
amount of $12,940,000*, to be dated June 2, 2021 (the 2021B
Bonds). Bid to be received before 10:00 A.M. C.D.T.
(collectively, the Bonds)
*Subject to principal adjustment pursuant to official Terms
of Offering.
Manner of Bidding: Open bids will not be received. Bids
will be received in any of the following methods:
- Sealed Bidding: Sealed bids may be submitted and will be
received at the office of the Director of Finance & Budget at
City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
- Electronic Internet Bidding: Electronic internet bids
will be received at the office of the Director of Finance &
Budget at City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
The bids must be submitted through the PARITY* competitive
bidding system.
- Electronic Facsimile/Email Bidding: Electronic facsimile
or email bids will be received at City Hall, Dubuque, Iowa
(facsimile number: (563) 589-4149) or the via email to the
Citys Municipal Advisor (tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed
bids.
Consideration of Bids: After the time for receipt of bids
has passed, the close of sealed bids will be announced.
Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and
announced.
Sale and Award: The sale and award of the Bonds will be
held at the Historic Federal Building, 350 West 6th Street,
Dubuque, Iowa at a meeting of the City Council on the above
date at 6:30 P.M. Its possible the meeting on May 3, 2021 may
be held electronically. Please see the agenda in advance of
the meeting for details on how to access the meeting.
Official Statement: The Issuer has issued an Official
Statement of information pertaining to the Bonds to be
offered, including a statement of the Terms of Offering and an
Official Bid Form, which is incorporated by reference as a
part of this notice. The Official Statement may be obtained
by request addressed to the City Clerk, City Hall, 50 West
13th Street, Dubuque, Iowa 52001; Telephone: (563) 589-4100 or
the Issuer's Municipal Advisor, Independent Public Advisors,
LLC, 8805 Chambery Blvd, Suite 300 #114, Johnston, Iowa,
50131, Telephone: (515) 259-8193.
Terms of Offering: All bids shall be in conformity with and
the sale shall be in accordance with the Terms of Offering as
set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the
opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines,
Iowa, as to the legality and their opinion will be furnished
together with the printed Bonds without cost to the purchaser
and all bids will be so conditioned. Except to the extent
necessary to issue their opinion as to the legality of the
Bonds, the attorneys will not examine or review or express any
opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in
connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all
bids, and to waive any irregularities as deemed to be in the
best interests of the public.
By order of the City Council of the City of Dubuque, State
of Iowa.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
It 4/23
ITEMS TO INCLUDE ON AGENDA
CITY OF DUBUQUE, IOWA
$12,940,000* (Subject to Adjustment per Terms of Offering) Taxable General Obligation Bonds,
Series 2021B
• Resolution directing the advertisement for sale and approving electronic bidding
procedures and Distribution of Preliminary Official Statement.
NOTICE MUST BE GIVEN PURSUANT TO IOWA CODE
CHAPTER 21 AND THE LOCAL RULES OF THE CITY.
- 1 -
April 19, 2021
The City Council of the City of Dubuque, State of Iowa, met in regular session, via
electronic means, Council having determined that it is impossible and impractical for all
members of the Council, other City personnel, and members of the public to be physically
present at this meeting due to the COVID-19 pandemic, at 6:30 P.M., on the above date. There
were present Mayor Roy D. Buol, in the chair, and the following named Council Members:
Cavanagh, Farber, Jones, Resnick, Roussell, Sprank
Absent: ___________________________________________
Vacant: ___________________________________________
* * * * * * *
- 2 -
Council Member Resnick introduced the following Resolution entitled "RESOLUTION
DIRECTING THE ADVERTISEMENT FOR SALE OF $12,940,000* (SUBJECT TO
ADJUSTMENT PER TERMS OF OFFERING) TAXABLE GENERAL OBLIGATION
BONDS, SERIES 2021B, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND
DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENT" and moved its adoption.
Council Member Jones seconded the Resolution to adopt. The roll was called and the vote was,
AYES: Farber, Cavanagh, Sprank, Buol, Resnick, Jones, Roussell
___________________________________________
NAYS: ___________________________________________
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION DIRECTING THE ADVERTISEMENT FOR
SALE OF $12,940,000* (SUBJECT TO ADJUSTMENT PER
TERMS OF OFFERING) TAXABLE GENERAL OBLIGATION
BONDS, SERIES 2021B, AND APPROVING ELECTRONIC
BIDDING PROCEDURES AND DISTRIBUTION OF
PRELIMINARY OFFICIAL STATEMENT
WHEREAS, the Issuer is in need of funds to pay costs of refunding or refinancing
outstanding indebtedness of the City, including Taxable General Obligation Bonds, Series
2012C, Taxable General Obligation Bonds, Series 2012F, and Taxable General Obligation
Bonds, Series 2014C, essential corporate purpose(s), and it is deemed necessary and advisable
that Taxable General Obligation Bonds, to the amount of not to exceed $44,500,000 be
authorized for said purpose(s); and
WHEREAS, pursuant to notice published as required by Section 384.25 of the Code of
Iowa, this Council has held a public meeting and hearing upon the proposal to institute
proceedings for the issuance of the Bonds, and the Council is therefore now authorized to
proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, the City is in need of funds to pay costs of the reconstruction, expansion of
and improvements to the Riverfront docking facility; general corporate purpose(s), and it is
deemed necessary and advisable that Taxable General Obligation Bonds, to the amount of not to
exceed $700,000 be authorized for said purpose(s); and
WHEREAS, the Issuer has a population of more than 5,000 but not more than 75,000,
and the Bonds for these purposes do not exceed $700,000; and
- 3 -
WHEREAS, pursuant to notice published as required by Section 384.26 of the Code of
Iowa, the Council of the City has held public meeting and hearing upon the proposal to institute
proceedings for the issuance of Bonds for general corporate purpose(s) in the amounts as above
set forth, and, no petition for referendum having been received, the Council is therefore now
authorized to proceed with the issuance of said Bonds for such purpose(s); and
WHEREAS, the Issuer is in need of funds to pay costs of aiding in the planning,
undertaking and carrying out of urban renewal projects under the authority of Chapter 403 and
the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal
District, such as those costs associated with the construction, renovation, remodeling,
improvement, equipping and repairing of parking garages and ramps, essential corporate urban
renewal purpose project(s), and it is deemed necessary and advisable that the City issue Taxable
General Obligation Bonds, for such purpose(s) to the amount of not to exceed $950,000 as
authorized by Sections 384.25 and 403.12 of the Code of Iowa; and
WHEREAS, pursuant to notice published as required by Sections 384.25 and 403.12 this
Council has held a public meeting and hearing upon the proposal to institute proceedings for the
issuance of said Bonds, and all objections, if any, to such Council action made by any resident or
property owner of the City were received and considered by the Council; and no petition having
been filed, it is the decision of the Council that additional action be taken for the issuance of said
Bonds for such purpose(s), and that such action is considered to be in the best interests of the
City and the residents thereof; and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is hereby found and
determined that the various general obligation bonds authorized as hereinabove described shall
be combined for the purpose of issuance in a single issue of $12,940,000* (Subject to
Adjustment Per Terms of Offering) General Obligation Bonds as hereinafter set forth; and
WHEREAS, in conjunction with its Municipal Advisor, Independent Public Advisors,
LLC, and Disclosure Counsel, the City has caused a Preliminary Official Statement to be
prepared outlining the details of the proposed sale of the Bonds; and
WHEREAS, the Council has received information from its Municipal Advisor evaluating
and recommending the procedure hereinafter described for electronic, email, facsimile and
internet bidding to maintain the integrity and security of the competitive bidding process and to
facilitate the delivery of bids by interested parties; and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of both sealed and electronic internet
communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE CITY
OF DUBUQUE, STATE OF IOWA:
Section 1. That the receipt of electronic bids by facsimile machine, email and through the
Parity Competitive Bidding System described in the Notice of Sale and Official Statement are
hereby found and determined to provide reasonable security and to maintain the integrity of the
- 4 -
competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering at public sale.
Section 2. That Taxable General Obligation Bonds, Series 2021B, of City of Dubuque,
State of Iowa, in the amount of $12,940,000* (Subject to Adjustment per Terms of Offering), to
be issued as referred to in the preamble of this Resolution, to be dated June 2, 2021, be offered
for sale pursuant to the published advertisement.
Section 3. That the preliminary Official Statement in the form presented to this meeting
be and the same hereby is approved as to form and deemed final for purposes of Rule 15c2-12 of
the Securities and Exchange Commission, subject to such revisions, corrections or modifications
as the Mayor and City Clerk, upon the advice of bond counsel, disclosure counsel, and the City's
Municipal Advisor, shall determine to be appropriate, and is authorized to be distributed in
connection with the offering of the Bonds for sale.
Section 4. That the Clerk is hereby directed to publish notice of sale of the Bonds at least
once, the last one of which shall be not less than four clear days nor more than twenty days
before the date of the sale. Publication shall be made in the Telegraph Herald, a legal
newspaper, printed wholly in the English language, published within the county in which the
Bonds are to be offered for sale or an adjacent county. The notice is given pursuant to Chapter
75 of the Code of Iowa, and shall state that this Council, on the 3rd day of May, 2021, at 6:30
P.M., will hold a meeting to receive and act upon bids for said Bonds, which bids were
previously received and opened by City Officials at 10:00 A.M. on said date. The notice shall be
in substantially the following form:
- 5 -
(To be published between: April 13 and April 28, 2021)
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State
of Iowa, hereafter described, must be received at the office of the Director of Finance & Budget,
City Hall, 50 West 13th Street, Dubuque, Iowa 52001; Telephone: 563-589-4100 (the "Issuer")
in accordance with the official Terms of Offering, on the 3rd day of May, 2021. The bids will
then be publicly opened and referred for action to the meeting of the City Council in conformity
with the Terms of Offering.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2021A, in the
amount of $29,395,000*, to be dated June 2, 2021 (the "2021A
Bonds"). Bids to be received before 10:00 A.M. C.D.T.; and
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2021B,
in the amount of $12,940,000*, to be dated June 2, 2021 (the
“2021B Bonds”). Bid to be received before 10:00 A.M. C.D.T.
(collectively, the “Bonds”)
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Bidding: Open bids will not be received. Bids will be received in any of the
following methods:
Sealed Bidding: Sealed bids may be submitted and will be received at the office
of the Director of Finance & Budget at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001.
Electronic Internet Bidding: Electronic internet bids will be received at the office
of the Director of Finance & Budget at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001. The bids must be submitted through the PARITY® competitive
bidding system.
Electronic Facsimile/Email Bidding: Electronic facsimile and email bids will be
received at City Hall, Dubuque, Iowa (facsimile number: (563) 589-4149) or the
via email to the City’s Municipal Advisor (tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed
bids will be announced. Sealed bids will then be publicly opened and announced. Finally,
electronic internet bids will be accessed and announced.
- 6 -
Sale and Award: The sale and award of the Bonds will be held at the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa at a meeting of the City Council on the above date
at 6:30 P.M. It’s possible the meeting on May 3 may be held electronically. Please see the
agenda in advance of the meeting for details on how to access the meeting.
Official Statement: The Issuer has issued an Official Statement of information pertaining
to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid
Form, which is incorporated by reference as a part of this notice. The Official Statement may be
obtained by request addressed to the City Clerk, City Hall, 50 West 13th Street, Dubuque, Iowa
52001; Telephone: (563) 589-4100 or the Issuer's Municipal Advisor, Independent Public
Advisors, LLC, 8805 Chambery Blvd, Suite 300 #114, Johnston, Iowa, 50131, Telephone: (515)
259-8193.
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accordance with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C.,
Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together
with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except
to the extent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not
examine or review or express any opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Dubuque, State of Iowa.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
(End of Notice)
PASSED AND APPROVED this 19th day of April, 2021.
ATTEST:
ad'z'�z f AP'*9-'2'City Clerk
Mayor
-7-
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned City Clerk of the City of Dubuque, State of Iowa, do hereby certify
that attached is a true and complete copy of the portion of the records of the City showing
proceedings of the Council, and the same is a true and complete copy of the action taken by the
Council with respect to the matter at the meeting held on the date indicated in the attachment,
which proceedings remain in full force and effect, and have not been amended or rescinded in
any way; that meeting and all action thereat was duly and publicly held in accordance with a
notice of meeting and tentative agenda, a copy of which was timely served on each member of
the Council and posted on a bulletin board or other prominent place easily accessible to the
public and clearly designated for that purpose at the principal office of the Council pursuant to
the local rules of the Council and the provisions of Chapter 21, Code of Iowa, upon reasonable
advance notice to the public and media at least twenty-four hours prior to the commencement of
the meeting as required by law and with members of the public present in attendance; I further
certify that the individuals named therein were on the date thereof duly and lawfully possessed of
their respective City offices as indicated therein, that no Council vacancy existed except as may
be stated in the proceedings, and that no controversy or litigation is pending, prayed or
threatened involving the incorporation, organization, existence or boundaries of the City or the
right of the individuals named therein as officers to their respective positions.
WITNESS my hand and the seal of the Council hereto affixed this Q 6th day of
, 2021.
City Clerk, City of Dubuque, State of Iowa
A ffi 14 +
a v S
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned, do hereby certify that I am now and was at the times hereinafter
mentioned, the duly qualified and acting Clerk of the City of Dubuque, in the County of
Dubuque, State of Iowa, and that as such Clerk and by frill authority from the Council of the
City, I have caused a
NOTICE OF BOND SALE
($12,940,000* (Subject to Adjustment per Terms of Offering) Taxable General
Obligation Bonds, Series 2021B)
of which the clipping annexed to the publisher's affidavit hereto attached is in words and figures
a correct and complete copy, to be published as required by law in the Telegraph Herald, a legal
newspaper published at least once weekly, printed wholly in the English language, published
regularly and mailed through the post office of current entry for more than two years and which
has had for more than two years a bona fide paid circulation recognized by the postal laws of the
United States, and has a general circulation in the City, and that the Notice was published in all
of the issues thereof published and circulated on the following date:
03 r d 32021.
WITNESS my official signature this c� 641, day of , 2021.
City Clerk, City of Dubuque, State of Iowa
01864335-1\10422-209
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/23/2021
and for which the charge is 62.58
Subscribed to before me, a Notary Public in aWor
Dubuque County, Iowa,
this 26th day of April, 2021
Nota ublic in and for Dubugt a County, ty, Iowa.
'`- „ JANET K. PAPE
Co�mmWlma Number 199669
W� Comm. Exp. DEC 11, 2M
Ad text : NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds
of the City of Dubuque, State of Iowa, hereafter described,
must be received at the office of the Director of Finance &
Budget, City Hall, 50 West 13th Street, Dubuque, Iowa 52001;
Telephone: 563-589-4100 (the "Issuer") in accordance with the
official Terms of Offering, on the 3rd day of May, 2021. The
bids will then be publicly opened and referred for action to
the meeting of the City Council in conformity with the Terns
of Offering.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2021A, in the amount of
$29,395,000*, to be dated June 2, 2021 (the "2021A Bonds").
Bids to be received before 10:00 A.M. C.D.T.; and
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2021B, in the
amount of $12,940,000*, to be dated June 2, 2021 (the 2021B
Bonds). Bid to be received before 10:00 A.M. C.D.T.
(collectively, the Bonds)
*Subject to principal adjustment pursuant to official Terms
of Offering.
Manner of Bidding: Open bids will not be received. Bids
will be received in any of the following methods:
- Sealed Bidding: Sealed bids may be submitted and will be
received at the office of the Director of Finance & Budget at
City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
- Electronic Internet Bidding: Electronic internet bids
will be received at the office of the Director of Finance &
Budget at City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
The bids must be submitted through the PARITY* competitive
bidding system.
- Electronic Facsimile/Email Bidding: Electronic facsimile
or email bids will be received at City Hall, Dubuque, Iowa
(facsimile number: (563) 589-4149) or the via email to the
Citys Municipal Advisor (tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed
bids.
Consideration of Bids: After the time for receipt of bids
has passed, the close of sealed bids will be announced.
Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and
announced.
Sale and Award: The sale and award of the Bonds will be
held at the Historic Federal Building, 350 West 6th Street,
Dubuque, Iowa at a meeting of the City Council on the above
date at 6:30 P.M. Its possible the meeting on May 3, 2021 may
be held electronically. Please see the agenda in advance of
the meeting for details on how to access the meeting.
Official Statement: The Issuer has issued an Official
Statement of information pertaining to the Bonds to be
offered, including a statement of the Terms of Offering and an
Official Bid Form, which is incorporated by reference as a
part of this notice. The Official Statement may be obtained
by request addressed to the City Clerk, City Hall, 50 West
13th Street, Dubuque, Iowa 52001; Telephone: (563) 589-4100 or
the Issuer's Municipal Advisor, Independent Public Advisors,
LLC, 8805 Chambery Blvd, Suite 300 #114, Johnston, Iowa,
50131, Telephone: (515) 259-8193.
Terms of Offering: All bids shall be in conformity with and
the sale shall be in accordance with the Terms of Offering as
set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the
opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines,
Iowa, as to the legality and their opinion will be furnished
together with the printed Bonds without cost to the purchaser
and all bids will be so conditioned. Except to the extent
necessary to issue their opinion as to the legality of the
Bonds, the attorneys will not examine or review or express any
opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in
connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all
bids, and to waive any irregularities as deemed to be in the
best interests of the public.
By order of the City Council of the City of Dubuque, State
of Iowa.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
It 4/23
(To be published between: April 13 and April 28, 2021)
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds of the City of Dubuque, State
of Iowa, hereafter described, must be received at the office of the Director of Finance & Budget,
City Hall, 50 West 13th Street, Dubuque, Iowa 52001; Telephone: 563-589-4100 (the "Issuer")
in accordance with the official Terms of Offering, on the 3rd day of May, 2021. The bids will
then be publicly opened and referred for action to the meeting of the City Council in conformity
with the Terms of Offering.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2021A, in the
amount of$29,395,000*, to be dated June 2, 2021 (the "2021A
Bonds"). Bids to be received before 10:00 A.M. C.D.T.; and
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2021B,
in the amount of$12,940,000*, to be dated June 2, 2021 (the
"2021B Bonds"). Bid to be received before 10:00 A.M. C.D.T.
(collectively, the `Bonds")
*Subject to principal adjustment pursuant to official Terms of Offering.
Manner of Biddin�: Open bids will not be received. Bids will be received in any of the
following methods:
• Sealed Biddin�: Sealed bids may be submitted and will be received at the office
of the Director of Finance & Budget at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001.
• Electronic Internet Biddin�: Electronic internet bids will be received at the office
of the Director of Finance & Budget at City Hall, 50 West 13th Street, Dubuque,
Iowa 52001. The bids must be submitted through the PARITY� competitive
bidding system.
• Electronic Facsimile/Email Biddin�: Electronic facsimile or email bids will be
received at City Hall, Dubuque, Iowa (facsimile number: (563) 589-4149) or the
via email to the City's Municipal Advisor(tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of sealed
bids will be announced. Sealed bids will then be publicly opened and announced. Finally,
electronic internet bids will be accessed and announced.
Sale and Award: The sale and award of the Bonds will be held at the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa at a meeting of the City Council on the above date
at 6:30 P.M. It's possible the meeting on May 3, 2021 may be held electronically. Please see the
agenda in advance of the meeting for details on how to access the meeting.
Official Statement: The Issuer has issued an Official Statement of information pertaining
to the Bonds to be offered, including a statement of the Terms of Offering and an Official Bid
Form, which is incorporated by reference as a part of this notice. The Official Statement may be
obtained by request addressed to the City Clerk, City Hall, 50 West 13th Street, Dubuque, Iowa
52001; Telephone: (563) 589-4100 or the Issuer's Municipal Advisor, Independent Public
Advisors, LLC, 8805 Chambery Blvd, Suite 300 #114, Johnston, Iowa, 50131, Telephone: (515)
259-8193.
Terms of Offerin�: All bids shall be in conformity with and the sale shall be in
accordance with the Terms of Offering as set forth in the Official Statement.
Le�al Opinion: The Bonds will be sold subject to the opinion of Ahlers & Cooney, P.C.,
Attorneys of Des Moines, Iowa, as to the legality and their opinion will be furnished together
with the printed Bonds without cost to the purchaser and all bids will be so conditioned. Except
to the eXtent necessary to issue their opinion as to the legality of the Bonds, the attorneys will not
examine or review or express any opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in connection with the sale, issuance or
marketing of the Bonds.
Ri�hts Reserved: The right is reserved to reject any or all bids, and to waive any
irregularities as deemed to be in the best interests of the public.
By order of the City Council of the City of Dubuque, State of Iowa.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
(End of Notice)
Ahlers&Cooney, P.C.
A H L E R 5 C O O N E Y Attorneys at Law
100 Court Avenue, Suite 600
A T T ❑ R N E Y 5 Des Moines, lowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
Kristin B. Cooper
515.246.0330
kcooper@ahlerslaw.com
April 8, 2021
VIA E-MAIL
Ms. Jenny Larson
Budget Director
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
Re: Dubuque, Iowa- $29,395,000* (Subject to Adjustment Pursuant to Terms of
Offering) General Obligation Bonds, Series 2021A; and$12,940,000* (Subject to
Adjustment Pursuant to Terms of Offering) Taxable General Obligation Bonds,
Series 2021B
Dear Jenny:
We have now prepared proceedings to cover the advertisement for the sale of the above-
referenced Bonds, as well as approving the Preliminary Official Statement and approving
electronic bidding procedures for the sale. These proceedings schedule the bond sale and
award for May 3, 2021.
Publication Rec�uirement--Notice of Bond Sale.
The Clerk has been authorized to select a date for sale and to publish the Notice of Bond
Sale, form of which is enclosed. For convenience a combined Notice of Bond Sale covering
both series has been provided, and must be published between Apri113, 2021 and Apri129,
2021 (dates inclusive). The combined notice need only be published once to cover both sales.
The Notice of Bond Sale must be published at least one time in a newspaper published in
the County where the Bonds are offered for sale. The Bond sale may be held at any time; but not
less than four clear days nor more than twenty days following the date of the last publication.
An extra copy of the notice is enclosed for use by the newspaper. (The enclosed certificate
covering the publication of the notice should be returned promptly together with a copy of the
published notice so we can proof the publication.)
The Notice of Sale includes language to permit the use of electronic bidding. You should
have Independent Public Advisors, LLC's recommendation that electronic bidding procedures be
utilized for this Bond sale. Based upon this recommendation, the Iowa Code requires that the
WISHARD t� BAILV - �SSS� GUERNSEY & Bni�v - 1893� BAILV t� STIPP - �90�� STIPP� PERRY� BANNISTER t� STARZINGER - �9�4� BANNISTER� CARPENTER�
AHLERS $i COONEY - 1950; AHLERS, COONEY, DORWEILER, ALLBEE� HAYNIE $i SMITH - 1974; AHLERS� COONEY� DORWEILER, HAYNIE� SMITH $i ALLBEE� P.C. - 1990
April 8, 2021
Page 2
Council make a finding that the recommended procedure will provide reasonable security and
maintain the integrity of the competitive bidding process and facilitate the delivery of bids by
interested parties under the circumstances of the particular sale. The proceedings enclosed are
prepared on the basis that the Council will agree with the recommendation and make the
necessary findings.
This Resolution also approves the Official Statement and authorizes its distribution with
respect to the above-referenced issues. Please note that the preparation of the Official Statement
is subject to Federal Securities Law regulation. Please be certain that any facts and
representations contained in the Official Statement are accurate in all material respects and not
omitting any information material to the City's financial conditions, to and including the date of
the delivery of the above-referenced Bonds. We recommend that the draft Preliminary Official
Statement be given to council and department heads for review prior to the meeting.
In the near future, we will send proceedings for the receipt of bids and award of sale.
Please send us eXecuted copies of the proceedings via US Mail, as well as electronic scans. If
you have any questions,please don't hesitate to contact our office.
Very truly yours,
Ahlers & Cooney, P.C.
Kristin Billingsley Cooper
FOR THE FIRM
KBC:seb
Enclosures
cc: Adrienne N. Breitfelder, City of Dubuque (via e-mail w/enc.)
Trish Gleason, City of Dubuque (via e-mail w/enc.)
Tionna Pooler, Independent Public Advisors (via e-mail w/enc.)
01864392-1\10422-209
PRELIMINARY OFFICIAL STATEMENT DATED APRIL 19,2021
�� New&Refunding Issues Moody's Investors Service"_"
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� �� Assuming compliance with certain covenants, in the opinion of Ahlers& Cooney, P.C., Bond Counsel, under present law and assuming continued corrapliance with the
� .� requirements of the Internal Revenue Code of 1986,as amended(the "Code'), interest on the Series 2021A Bonds is excludable from gross income for federa[income tax
� � purposes and is not an item of tax preference for purposes of the federal alternative minimum tax. The Series 2021B Bonds are includable in the income of the recipient for
a� � federal income tax purposes. The Bonds will not be designated as "qualified tax-exempt"obligations.Interest on the Bonds is NOT eYempt from presentlowa income taxes.
� �^ See "TAXMATTERS"hereinforamoredetaileddiscussion.
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o � $12,945,000* Taxable General Obligation Bonds, Series 2021B
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°' � BIDS RECEIVED: May 3,2021, 10:00 o'clock A.M.,Central Time
�� AWARD: May 3,2021,6:30 o'clock P.M.,Central Time
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° � Dated: Date of Delivery Principal Due: June 1 as shown on inside front cover
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��" The$29,395,000* General Obligation Bonds, Series 2021A(the"Series 2021A Bonds"or the"Exempt Bonds"), and the$12,945,000* Taxable
�w General Obligation Bonds, Serics 2021B, (the"Series 2021B Bonds"or the"Taxable Bonds"),are referred to herein collectively as the`Bonds".
-� ° The Bonds are being issued pursuant to Division III of Chapter 384 of the Code of Iowa,and resolutions to be adopted by the City Council of the
m �� Ciry of Dubuque,Iowa(the"City").Proceeds of the Bonds will be used for various Ciry projects as described fully under"AUTHORITY AND
°' � PURPOSE"herein. The Bonds will be eneral obli ations of the Cit for which the Cit will led e its ower to lev direct ad valorem taxes for
� - g g Y Y P g P Y
�; ° .o the repayment of the Bonds.
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�° � The Bonds will be issued as fully registered Bonds without coupons and,when issued,will be registered in the name of Cede&Co.,as nominee
� o � of The Depository Trust Company ("DTC"). DTC will act as securities depository for the Bonds. Individual purchases may be made in book-
�w � entry form only,in the principal amount of$5,000 and integral multiples thereof.Purchasers will not receive certificates representing their interest
�� � in the Bonds purchased. Principal of the Bonds payable annually on each June 1, and interest thereon, payable initially on December 1,2021
� � � and thereafter on each June 1 and December 1,will be paid to DTC by the Ciry's Registrar/Paying Agent,UMB Bank,n.a.of West Des Moines,
�� ro Iowa(the"Registrar"). DTC will in turn remit such principal and interest to its participants for subsequent disbursements to the beneficial
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0 0 .� owners of the Bonds as described herein. Interest and principal shall be paid to the registered holder of a Bond as shown on the records
� � �� of ownership maintained by the Registrar on the 15t"day of the month preceding said interest payment date(the"Record Date").
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°' � � THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
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�,o ,� Series 2021A Bonds Series 2021B Bonds
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o � � MINIMUM BID: $29,189,235 $12,845,385
' � �� GOOD FAITH 1% (Required of 1% (Required of
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�,Y � DEPOSIT: Purchaser Only) Purchaser Only)
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�� o TAX MATTERS: Federal: Tax-Exempt Federal: Taxable
� � o State: Taxable State: Taxable
� � �:� See"TAX MATTERS" See"TAX MATTERS"
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�� � .� section for details. section for details.
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o � o The Bonds are offered for delivery, when, as and if issued and subject to the legal opinions of Ahlers &Cooney,P.C.,Bond Counsel, of Des
�� � Moines,Iowa,to be furnished upon delivery of the Bonds.The Series 2021A Bonds and the Series 2021B Bonds will be available for delivery
� � ,� through DTC in New Yark,New Yark,on or about June 2,2021. This Preliminary Official Statement will be further supplemented by offering
� � prices, interest rates, aggregate principal amount, principal amount per maturity, anticipated delivery date and underwriter, together with any
�� � other information required by law, and shall constitute a "Final Official Statement" of the City with respect to the Bonds, as defined in Rule
�� � 15c2-12.
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� � 3 *Preliminary;subject to change.
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H � N
CITY OF DUBUQUE,IOWA
$29,395,000* General Obligation Bonds, Series 2021A
MATURITY:
June l, Amount* June l, Amount*
2022 $2,670,000 2032 $1,690,000
2023 2,330,000 2033 1,405,000
2024 2,265,000 2034 1,435,000
2025 2,290,000 2035 205,000
2026 2,275,000 2036 215,000
2027 2,295,000 2037 215,000
2028 2,345,000 2038 225,000
2029 2,370,000 2039 230,000
2030 2,410,000 2040 235,000
2031 2,445,000 2041 245,000
$12,945,000* Taxable General Obli�ation Bonds, Series 2021B
MATURITY:
June 1, Amount* June 1, Amount*
2022 $1,000,000 2030 $1,095,000
2023 860,000 2031 1,125,000
2024 955,000 2032 1,150,000
2025 975,000 2033 715,000
2026 985,000 2034 740,000
2027 1,010,000 2035 115,000
2028 1,030,000 2036 120,000
2029 1,065,000
PRINCIPAL Preliminary; subject to change. The City reserves the right to
ADJUSTMENT*: increase or decrease the aggregate principal amounts of the Bonds.
Such change will be in increments of$5,000 and may be made in
any of the maturities. The purchase prices will be adjusted
proportionately to reflect any changes in issue size.
INTEREST: December 1, 2021 and semiannually thereafter.
REDEMPTION: Bonds due after June 1,2028 will be subject to call prior to maturity
in whole, or from time to time in part,in any order of maturity and
within a maturity by lot on said date or on any date thereafter at the
option of the City, upon terms of par plus accrued interest to date
of call. Written notice of such call shall be given at least thirty(30)
days prior to the date fixed for redemption to the registered owners
of the Bonds to be redeemed at the address shown on the
registration books.
COMPLIANCE WITH S.E.C.RULE 15c2-12
Municipal obligations(issued in an aggregate amount over$1,000,000)are subject to General Rules and Regulations,Securities
Exchange Act of 1934,Rule 15c2-12 Municipal Securities Disclosure.
Official Statement: This Official Statement was prepared for the City for dissemination to prospective bidders. Its primary
purpose is to disclose information regarding the Bonds to prospective bidders in the interest of receiving competitive bids in
accordance with the TERMS OF OFFERING and NOTICE OF BOND SALE contained herein.Unless an addendum is received
prior to the sale,this document shall be deemed the"Near Final Official Statement".
Review Period: This Official Statement has been distributed to City staff as well as to prospective bidders for an objective
review of its disclosure. Comments,omissions or inaccuracies must be submitted to Independent Public Advisors,LLC at least
two business days prior to the sale. Requests for additional information or corrections in the Official Statement received on or
before this date will not be considered a qualification of a bid received. If there are any changes,corrections or additions to the
Official Statement,prospective bidders will be informed by an addendum at least one business day prior to the sale.
Final Official Statement:Upon award of sale of the Bonds,the legislative body will authorize the preparation of a Final Official
Statement that includes the offering prices,interest rates,aggregate principal amount,principal amount per maturity,anticipated
delivery date and other information required by law and the identity of the underwriter(the"Syndicate Manager")and syndicate
members. Copies of the Final Official Statement will be delivered to the Syndicate Manager within seven business days
following the bid acceptance.
REPRESENTATIONS
No dealer, broker, salesperson or other person has been authorized by the City to give any information or to make any
representations, other than those contained in the Official Statement. This Official Statement does not constitute any offer to
sell or the solicitation of an offer to buy,nor shall there be any sale of the Bonds by any person,in any jurisdiction in which it
is unlawful for such person to make such offer, solicitation or sale. The information, estimates and expressions of opinion
herein are subject to change without notice and neither the delivery of this Official Statement nor any sale made hereunder,
shall, under any circumstances, create any implication that there has been no change in the affairs of the City since the date
hereo£ This Official Statement is submitted in connection with the sale of the securities referred to herein and may not be
reproduced or used,in whole or in part,for any other purpose.
This Official Statement and any addenda thereto were prepared relying on information from the Ciry and other sources,which
are believed to be reliable, but it makes no warranry, guaranry, or other representarion with respect to the accuracy or
completeness of such information.
Brief descriptions or summaries of the Issuer, the Bonds, the Resolution and other documents, agreements and statutes are
included in this Official Statement. The summaries or references herein to the Bonds, the Resolution and other documents,
agreements and statutes referred to herein, and the description of the Bonds included herein, do not purport to be
comprehensive or definitive, and such summaries,references and descriptions are qualified in their entireties by reference to
such documents, and the description herein of the Bonds is qualified in its entirety by reference to the form thereof and the
information with respect thereto included in the aforesaid documents. Copies of such documents may be obtained from the
Issuer.
This Official Statement is not to be construed as a contract or agreement amongst the City, the Underwriter, or the holders of
any of the Bonds. Any statements made in this Official Statement involving matters of opinion, whether or not expressly so
stated,are intended merely as opinions and not as representations of fact. The information and expressions of opinions contained
herein are subject to change without norice and neither the delivery of this Official Statement or the sale of the Bonds made
hereunder shall, under any circumstances, create any implication that there has been no change in the affairs of the City since
the date hereo£ The information contained in this Official Statement is not guaranteed.
Bond Counsel has not participated in the prepararion of this Official Statement and is not expressing any opinion as to the
completeness or accuracy of the information contained therein.
Compensation of Independent Public Advisors,LLC(the"Municipal Advisor")payable entirely by the City,is contingent upon
the sale of the issues.
TABLE OF CONTENTS
TERMSOF OFFERING.............................................................................................................................................................i
INTRODUCTION......................................................................................................................................................................1
AUTHORITY AND PURPOSE..................................................................................................................................................1
OPTIONAL REDEMPTION OF THE BONDS..........................................................................................................................3
INTERESTON THE BONDS.....................................................................................................................................................4
PAYMENT OF AND SECURITY FOR THE BONDS ..............................................................................................................4
RATING......................................................................................................................................................................................4
BONDHONDERRISKS.............................................................................................................................................................5
BOOK-ENTRY-ONLY ISSUANCE........................................................................................................................................11
FUTUREFINANCING.............................................................................................................................................................13
LITIGATION............................................................................................................................................................................13
DEBT PAYMENT HISTORY...................................................................................................................................................13
LEGALMATTERS ..................................................................................................................................................................13
TAXMATTERS .......................................................................................................................................................................14
CHANGES IN FEDERAL AND STATE TAX LAW...............................................................................................................16
ENFORCEMENT......................................................................................................................................................................16
OPINION...................................................................................................................................................................................17
MUNICIPALADVLSOR.............................................................................................................................................................17
CONTINUINGDISCLOSURE.................................................................................................................................................17
SALE AT COMPETITIVE BIDDING.....................................................................................................................................18
AUDITED FINANCIAL STATEMENTS................................................................................................................................18
CERTIFICATION.....................................................................................................................................................................18
APPENDIX A: INFORMATION ABOUT THE ISSUER
APPENDIX B: FORMS OF LEGAL OPINIONS
APPENDIX C: JUNE 30,2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX D: FORM OF COMBINED CONTINUING DISCLOSURE CERTIFICATE
OFFICIAL BID FORMS
CITY OF DUBUQUE, IOWA
Mavor and Citv Council
Member Term Expiration
Roy D. Buol,Mayor 2021
Ric W. Jones-At Large 2021
David T. Resnick-At Large 2023
Susan R. Farber-Ward 1 2021
Laura J. Roussell-Ward 2 2023
Danny C. Sprank-Ward 3 2021
Brad M. Cavanagh-Ward 4 2023
Administration
Michael C. Van Milligen,City Manager
Cori Burbach, Assistant City Manager
Jenny Larson, Director of Finance&Budget
Adrienne N. Breitfelder, City Clerk
City Attorney
Crenna Brumwell
Dubuque,Iowa
Bond Counsel & Disclosure Counsel
Ahlers & Cooney, P.C.
Des Moines, Iowa
Municipal Advisor
Independent Public Advisors, LLC
West Des Moines,Iowa
TERMS OF OFFERING
CITY OF DUBUQUE, IOWA
This section sets forth the description of certain of the terms of the Bonds with which all bidders and bid proposals are
required to comply,as follows:
DETAILS OF THE SERIES 2021A BONDS
General Obligation Bonds, Series 2021A(the"Series 2021A Bonds"),in the aggregate principal amount of$29,395,000*
to be dated June 2, 2021*, in the denomination of$5,000 or any integral multiples thereof designated by the Purchaser(s)
within forty-eight hours of acceptance of the bid,will mature as follows:
June 1, Amount* June 1, Amount*
2022 $2,670,000 2032 $1,690,000
2023 2,330,000 2033 1,405,000
2024 2,265,000 2034 1,435,000
2025 2,290,000 2035 205,000
2026 2,275,000 2036 215,000
2027 2,295,000 2037 215,000
2028 2,345,000 2038 225,000
2029 2,370,000 2039 230,000
2030 2,410,000 2040 235,000
2031 2,445,000 2041 245,000
*Preliminary; subject to change.
DETAILS OF THE SERIES 2021B BONDS
Taxable General Obligation Bonds, Series 2021B (the "Series 2021B Bonds"), in the aggregate principal amount of
$12,945,000* to be dated June 2, 2021*, in the denomination of$5,000 or any integral multiples thereof designated by
the Purchaser(s) within forty-eight hours of acceptance of the bid, will mature as follows:
June 1, Amount* June 1, Amount*
2022 $1,000,000 2030 $1,095,000
2023 860,000 2031 1,125,000
2024 955,000 2032 1,150,000
2025 975,000 2033 715,000
2026 985,000 2034 740,000
2027 1,010,000 2035 ll 5,000
2028 1,030,000 2036 120,000
2029 1,065,000
*Preliminary; subject to change.
PRINCIPAL ADJUSTMENT OF THE BONDS
The City reserves the right to increase or decrease the aggregate principal amounts of the Bonds. Such changes will
be in increments of$5,000 and may be made in any of the maturities. The purchase prices of each respective series will
be adjusted proportionately to reflect any changes in issue sizes.
OPTIONAL REDEMPTION OF THE BONDS
Bonds due after June 1,2028 will be subject to call prior to maturity in whole, or from time to time in part,in any order of
maturity and within a maturity by lot on said date or on any date thereafter at the option of the City,upon terms of par plus
accrued interest to date of call. Written notice of such call shall be given at least thirty(30)days prior to the date fixed for
redemption to the registered owners of the Bonds to be redeemed at the address shown on the registration books.
i
INTEREST ON THE BONDS
Interest on the Bonds will be payable on December l,2021 and semiannually on the lst day of each June and December
thereafter until the principal is paid in full. Interest and principal shall be paid to the registered holder of a Bond as
shown on the records of ownership maintained by the Registrar as of the 15r'' day of the month preceding such interest
payment date(the "Record Date"). Interest will be computed on the basis of a 360-day year of twelve 30-day months and
will be rounded pursuant to rules of the Municipal Securities Rulemaking Board.
GOOD FAITH DEPOSITS
Good faith deposits in the amount of $29,395 for the Series 2021A Bonds ("Series 2021A Deposit") and$12,945 for
the Series 2021B Bonds ("Series 2021B Deposit")(collectively the"Deposits") are required from the lowest bidder only.
Each lowest bidder is required to submit such respective deposit payable to the order of the City in the form of either(i)a
cashier's check provided to the City prior to the opening of bids or(ii) a wire transfer as instructed by the City's Municipal
Advisor not later than 1:00 P.M. Central Time on the day of sale of the Bonds. If not so received, the bid of the lowest
bidder may be rejected and the City may direct the second lowest bidder to submit a deposit and thereafter may award
the sale of the Bonds to the same. No interest on the Deposits will accrue to the successful bidder(s) (the "Purchaser(s)").
The Deposits will be applied to the respective purchase prices of the Bonds. In the event a Purchaser(s) fails to honor its
accepted bid proposal,the Deposits will be retained by the Ciry.
FORM OF BIDS AND AWARD
All bids shall be unconditional for each series of the Bonds for a price not less than $29,189,235 for the Series 2021A
Bonds and $12,845,385 for the Series 2021B Bonds, plus accrued interest, if any, and shall specify the rate or rates of
interest in conformity to the limitations set forth under the "RATES OF INTEREST" section. Bids must be submitted on
or in substantial compliance with the OFFICIAL BID FORM provided by the City.
The Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest cost(the"TIC")
basis assuming compliance with the"GOOD FAITH DEPOSITS" section. The TIC shall be determined by the present
value method,i.e.,by ascertaining the semiannual rate,compounded semiannually,necessary to discount to present value
as of the dated date of the Bonds, the amount payable on each interest payment date and on each stated maturity date or
earlier mandatory redemption, so that the aggregate of such amounts will equal the aggregate purchase price offered
therefore. The TIC shall be stated in terms of an annual percentage rate and shall be that rate of interest, which is twice
the semiannual rate so ascertained(also known as the Canadian Method). The TIC shall be as determined by the Municipal
Advisor based on the TERMS OF OFFERING and all amendments, and on the bids as submitted. The Municipal
Advisor's computation of the TIC of each bid shall be controlling. In the event of tie bids for the lowest TIC,the Bonds
will be awarded by lot.
The City will reserve the right to: (i) waive non-substantive informalities of any bid or of matters relating to the receipt
of bids and award of the Bonds,(ii)reject all bids without cause and(iii)reject any bid which the City determines to have
failed to comply with the terms herein.
RATES OF INTEREST
The rates of interest specified in the bidder's proposal must conform to the following limitations:
(a) For each respective series, each annual maturity must bear the same interest rate. Each annual maturity
must bear a single rate of interest from the dated date of the Bonds to the date of maturity.
(b) Rates of interest bid must be in multiples of one-eighth or one-twentieth of one percent.
(c) For each respective series, each rate of interest specified for Bonds of any annual maturity shall not be
less than a rate of interest specified for any earlier maturity. Rates must be level or in ascending order.
ii
RECEIPT OF BIDS
Forms of Bids: Bids must be submitted on or in substantial compliance with the TERMS OF OFFERING and OFFICIAL
BID FORM provided by the City or through PARITY° competitive bidding system (the "Internet Bid System"). The
City shall not be responsible for malfunction or mistake made by any person, or as a result of the use of an electronic bid
or the means used to deliver or complete a bid. The use of such facilities or means is at the sole risk of the prospective
bidder who shall be bound by the terms of the bid as received.
No bid will be accepted after the time specified in the TERMS OF OFFERING. The time as maintained by the Internet
Bid System shall constitute the official time with respect to all bids submitted. A bid may be withdrawn before the bid
deadline using the same method used to submit the bid. If more than one bid is received from a bidder, the last bid
received shall be considered.
Sealed Biddin�: Sealed bids may be submitted and will be received at the City Hall, 50 West 13`b Street, Dubuque,Iowa
52001.
Electronic Internet Biddin�: Electronic internet bids must be submitted through the Internet Bid System. Information
about the Internet Bid System may be obtained by calling(212)404-8102.
Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for purposes
of submitting its internet bid in a timely manner and in compliance with the requirements of the TERMS OF OFFERING
and OFFICIAL BID FORM. The City is permitting bidders to use the services of the Internet Bid System solely as a
communication mechanism to conduct the Internet bidding and the Internet Bid System is not an agent of the City.
Provisions of the TERMS OF OFFERING and OFFICIAL BID FORM shall control in the event of conflict with
information provided by the Internet Bid System.
Electronic Facsimile/Email Biddin�: Electronic facsimile bids will be received at City Hall, Dubuque, Iowa (facsimile
number. (563) 589-4149) or the via email to the City's Municipal Advisar (tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed bids.
Facsimile and email Transmissions received after the deadline will be rejected. Bidders electing to submit bids via
facsimile or email transmission bear full responsibility for the transmission of such bid. Neither the City nor its
agents shall be responsible for malfunction or mistake made by any person, or as a result of the use of the facsimile or
email facilities or any other means used to deliver or complete a bid. The use of such facilities or means is at the sole risk
of the prospective bidder who shall be bound by the terms of the bid as received. Neither the City nor its agents will
assume liability for the inability of the bidder to reach the above named facsimile numbers or email account prior to the time
of sale specified above. Time of receipt shall be the time recorded by the facsimile or email operator receiving the bids.
BOOK-ENTRY-ONLY ISSUANCE
The Bonds will be issued by means of a book-entry only system with no physical distribution of bonds made to the
public. The Bonds will be issued in fully registered form and one note certificate,representing the aggregate principal
amount of the Bonds maturing in each year will be registered in the name of Cede& Co. as nominee of The Depository
Trust Company ("DTC"), New York, New York, which will act as securities depository of the Bonds. Individual
purchases of the Bonds may be made in the principal amount of$5,000 or any multiple thereof of a single maturity through
book entries made on the books and records of DTC and its participants. Principal and interest are payable by the
Registrar to DTC or its nominee as registered owner of the Bonds. Transfer of principal and interest payments to
participants of DTC will be the responsibility of DTC; transfer of principal and interest payments to beneficial owners
by participants will be the responsibility of such participants and other nominees of beneficial owners. The Purchaser(s),
as a condition of delivery of the Bonds,will be required to deposit the bond certificates with DTC.
MUNICIPAL BOND INSURANCE AT OPTION OF THE PURCHASER(S)
iii
If the Bonds qualify for issuance of any policy of municipal bond insurance or commitment therefore at the option of the
bidder, the purchase of any such insurance policy or the issuance of any such commitment shall be at the sole option
and expense of the Purchaser(s). Any increased costs of issuance of the Bonds resulting from such purchase of insurance
shall be paid by the Purchaser(s), except that, if the Ciry has requested and received a rating on the Bonds from a rating
agency,the City will pay that initial rating fee. Any other rating agency fees shall be the responsibility of the Purchaser(s).
Failure of the municipal bond insurer to issue the policy after the Bonds have been awarded to the Purchaser(s) shall not
constitute cause for failure or refusal by the Purchaser(s)to accept delivery on the Bonds. The Ciry reserves the right in
its sole discretion to accept or deny changes to the financing documents requested by the insurer selected by the
Purchaser(s).
DELIVERY
The Bonds will be delivered to the Purchaser(s) via Fast Automated Securities Transfer ("FAST") delivery with the
Registrar holding the Bonds on behalf of DTC,against full payment in immediately available cash or federal funds. The
Bonds are expected to be delivered within forty-five days after the sale. Should delivery be delayed beyond sixty days
from the date of sale for any reason except failure of performance by the Purchaser(s), the Purchaser(s) may withdraw
their bid and thereafter their interest in and liabiliry for the Bonds will cease. When the Bonds are ready for delivery,
the Ciry will give the Purchaser(s) five working days notice of the delivery date and the Ciry will expect payment in
full on that date, otherwise reserving the right at its option to determine that the Purchaser failed to comply with the offer
of purchase.
INFORMATION FROM PURCHASER(S)
Establishment of Issue Price(10% Test to Apply if Competitive Sale Requirements are Not Satisfied)
The winning bidder shall assist the City in establishing the issue price of the Series 2021A Bonds (the"Exempt Bonds")
and shall execute and deliver to the City at Closing an "issue price" or similar certificate setting forth the reasonably
expected initial offering price to the public or the sales price or prices of each Series of Exempt Bonds, together with
the supporting pricing wires or equivalent communications, substantially in the forms attached hereto as E�iibit A to
this Terms of Offering, with such modifications as may be appropriate or necessary, in the reasonable judgment of the
winning bidder,the City and Bond Counsel.
The City intends that the provisions of Treasury Regulation Section 1.148-1(�(3)(i) (defining "competitive sale"
for purposes of establishing the issue price of each series of Exempt Bonds) will apply to the initial sale of each series
of Exempt Bonds (the "competitive sale requirements")because:
(1) the City shall disseminate this Terms of Offering to potential underwriters in a manner that
is reasonably designed to reach potential under�vriters;
(2) all bidders shall have an equal opportunity to bid;
(3) the City may receive bids from at least three underwriters of municipal bonds who have
established industry reputations for underwriting new issuances of municipal bonds; and
(4) the City anticipates awarding the sale of each series of the ExemptBonds to the bidder who
submits a firm offer to purchase the Exempt Bonds at the highest price (or lowest true
interest cost), as set forth in this Terms of Offering.
Any bid submitted pursuant to this Terms of Offering shall be considered a firm offer for the purchase of the Exempt
Bonds,as specified in the bid.
In the event that the competitive sale requirements are not satisfied, the City shall so advise the winning bidder. The
City shall treat the first price at which 10%of a maturity of each series ofthe Exempt Bonds(the"10% test")is sold to the
public as the issue price of that maturity,applied on a maturity-by-maturity basis(and if different interest rates apply
iv
within a maturity,to each separate CUSIP number within that maturity). The winning bidder shall advise the City if any
maturity of the Exempt Bonds satisfies the 10% test as of the date and time of the award of the Exempt Bonds. The
City will�require bidders to comply with the "hold-the-offering-price rule" and therefore does not intend
to use the initial offering price to the public as of the sale date of any maturity of the Exempt Bonds as the
issue price of that maturity. Bids will not be subject to cancellation in the event that the competitive sale
requirements are not satisfied. Bidders should prepare their bids on the assumption that all of the maturities
of the Exempt Bonds will be subject to the 10% test in order to establish the issue price of the Exempt Bonds.
If the competitive sale requirements are not satisfied, then until the 10%test has been satisfied as to each maturity
of each series of the Exempt Bonds, the winning bidder agrees to promptly report to the City the prices at which
the unsold Exempt Bonds of that maturity have been sold to the public. That reporting obligation shall continue,
whether or not the Closing Date has occurred, until the 10% test has been satisfied as to the Exempt Bonds of
that maturity or until all Exempt Bonds of that maturity have been sold.
By submitting a bid, each bidder confirms that: (i) any agreement among underwriters, any selling group agreement and
each retail distribution agreement (to which the bidder is a party) relating to the initial sale of the Exempt Bonds to the
public, together with the related pricing wires, contains or will contain language obligating each underwriter, each dealer
who is a member of the selling group, and each broker-dealer that is a party to such retail distribution agreement, as
applicable,to report the prices at which it sells to the public the unsold Series Exempt Bonds of each maturity allotted
to it until it is notified by the winning bidder that either the 10%test has been satisfied as to the Exempt Bonds of that
maturity or all Exempt Bonds of that maturity have been sold to the public, if and for so long as directed by the winning
bidder and as set forth in the related pricing wires,and(ii)any agreement among underwriters relating to the initial sale of
the Exempt Bonds to the public,together with the related pricing wires, contains or will contain language obligating each
undervvriter that is a party to a retail distribution agreement to be employed in connection with the initial sale of the
Exempt Bonds to the public to require each broker-dealer that is a party to such retail distribution agreement to report the
prices at which it sells to the public the unsold Exempt Bonds of each maturity allotted to it until it is notified by the
winning bidder or such underwriter that either the 10%test has been satisfied as to the Exempt Bonds of that maturity or
all Exempt Bonds of that maturity have been sold to the public, if and for so long as directed by the winning bidder or
such underwriter and as set forth in the related pricing wires.
Sales of any Exempt Bonds to any person that is a related party to an underwriter shall not constitute sales to the public for
purposes of this Terms of Offering. Further,for purposes of this Terms of Offering:
(1) "public"means any person other than an underwriter or a related party,
(2) "underwriter" means (A) any person that agrees pursuant to a written contract with the City (or
with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of
the Exempt Bonds to the public and(B) any person that agrees pursuant to a written contract
directly or indirectly with a person described in clause(A)to participate in the initial sale of the
Exempt Bonds to the public (including a member of a selling group or a party to a retail
distribution agreement participating in the initial sale of the Exempt Bonds to the public),
(3) a purchaser of any of the Exempt Bonds is a "related party" to an undenvriter if the
underwriter and the purchaser are subject, directly or indirectly, to (i) at least SO%common
ownership of the voting power or the total value of their stock, if both entities are corporations
(including direct ownership by one corporation of another), (ii) more than SO% common
ownership of their capital interests or profits interests, if both entities are partnerships
(including direct ownership by one partnership of another), or (iii) more than 50% common
ownership of the value of the outstanding stock of the corporation or the capital interests or
profit interests of the partnership, as applicable, if one entity is a corporation and the other
entity is a partnership (including direct ownership of the applicable stock or interests by one
entity of the other), and
(4) "sale date"means the date that the Exempt Bonds are awarded by the City to the winning bidder.
v
PRELIMINARY OFFICIAL STATEMENT
The City has authorized the preparation of a Preliminary Official Statement containing pertinent information relative
to the Bonds. The Preliminary Official Statement when further supplemented with maturity dates, principal amounts,
and interest rates of the Bonds, and any other information required by law or deemed appropriate by the City, shall
constitute a Final Official Statement of the City with respect to the Bonds, as that term is defined in Rule 15c2-12 of
the Securities and Exchange Commission (the "Rule").
By awarding the Bonds to any underwriter or underwriting syndicate submitting an OFFICIAL BID FORM therefore, the
City agrees that, no more than seven (7) business days af�er the date of such award, it shall provide without cost to the
senior managing underwriter of the syndicate to each series of Bonds are awarded up to 25 copies of the Final Official
Statement to permit each"Participating Underwriter"(as that term is defined in the Rule)to comply with the provisions
of such Rule. The City shall treat the senior managing underwriter of the syndicate to which the Bonds are awarded as its
designated agent for purposes of distributing copies of the Final Official Statement to the Participating Underwriter.
Any underwriter executing and delivering an OFFICIAL BID FORM with respect to the Bonds agrees thereby that if
its bid is accepted by the City, (i) it shall accept such designation and (ii) it shall enter into a contractual relationship
with all Participating Underwriters of the Bonds for purposes of assuring the receipt by each such Participating
Underwriter of the Final Official Statement.
CONTINUING DISCLOSURE
In order to assist bidders in complying with paragraph(b)(5)of the Rule,the City will undertake,pursuant to the resolution
for the Bonds and the Continuing Disclosure Certificate for the Bonds, to provide certain annual financial information
and notices of the occurrence of certain material events. A description of these undertakings is set forth in APPENDIX D
of this Preliminary Official Statement. The City will deliver the Continuing Disclosure Certificate at closing, and any
failure on the part of the City to deliver the same shall relieve the Purchaser of its obligation to purchase the Bonds.
Within the last five years,the City did not timely file audited financial statements(or operating data due to the fact that all
operating data is contained within the audited financial statements) for the fiscal year ending June 30, 2018 due to an
inadvertent uploading error, and did not properly link its audited financial statements or operating data for fiscal years
ending June 30,2016 and June 30,2017 to bonds issued in 2016 or 2017. The Issuer filed a notice of failure to file in both
instances (but did not file such notices timely) and did not file unaudited financial statements since the audited financial
statements were filed. The Issuer did not timely file certain operating data tables for various issues for fiscal years ending
June 30,2013 and 2014,did not link certain bonds issued in 2009 to a 2014 rating change which was filed for other issues,
and did not timely file notice of its failure to provide the aforementioned information on or before the date specified in its
prior continuing disclosure undertakings.
ELECTRONIC TRANSCRIPTS
Purchaser consents to the receipt of electronic transcripts and acknowledges the City's intended use of electronically
executed documents. Iowa Code chapter 554D establishes electronic signatures have the full weight and legal authority as
manual signatures.
CUSIP NUMBERS
It is anticipated that Committee on Uniform Security Identification Procedures("CUSIP")numbers will be printed on the
Bonds and the Purchaser must agree in the bid proposal to pay the cost thereo£ In no event will the City,Bond Counsel
or Municipal Advisor be responsible for the review or express any opinion that the CUSIP numbers are correct. Incorrect
CUSIP numbers on said Bonds shall not be cause for the Purchaser to refuse to accept delivery of said Bonds.
BY ORDER OF THE CITY COUNCIL
City of Dubuque 50 West 13r"Street
Dubuque,IA 52001
vi
EXHIBIT A
[ISSUE PRICE CERTIFICATE IF COMPETITIVE SALE REQUIREMENTS ARE MET]
PURCHASER'S CERTIFICATE
The undersigned,on behalf of ("Purchaser"),hereby certifies as set forth below with respect to the
sale of the above-caprioned obligarions(the`Bonds").
1. Reasonably Expected Initial Offering Price.
(a) As of the Sale Date, the reasonably expected initial offering prices of the Bonds to the Public by Purchaser are the
prices listed in Schedule A(the `Bxpected Offering Prices"). The Expected Offering Prices are the prices for the Maturities of
the Bonds used by Purchaser in formulating its bid to purchase the Bonds. Attached as Schedule B is a true and correct copy of
the bid provided by Purchaser to purchase the Bonds.
(b) Purchaser was not given the opportunity to review other bids prior to submitting its
(c) The bid submitted by Purchaser consrituted a firm offer to purchase the Bonds.
2. Defined Terrras.
(a� Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or
Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(b� Public means any person(including an individual,trust, estate,partnership, associarion, company, or corporarion)
other than an Underwriter or a related party to an Underwriter. The term"related party" for purposes of this certificate generally
means any two or more persons who have greater than 50 percent common ownership,directly or indirectly.
(C� Sale Date means the first day on which there is a binding contract in writing for the sale of a Maturity of the Bonds.
The Sale Date of the Bonds is May 3,2021.
(d� Undenvriter means(i)the Purchaser or any person that agrees pursuant to a written contract with the Issuer (or
with the lead underwriter to form an underwriting syndicate) to participate in the inirial sale of the Bonds to the Public, and(ii)
any person that agrees pursuant to a written contract directly or indirectly with a person described in clause (i) of this paragraph to
participate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution
agreement participating in the initial sale of the Bonds to the Public).
The representations set forth in this certif"icate are limited to factual matters only. Nothing in this certif"icate represents
Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as
amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon
by the Issuer with respect to certain of the representarions set forth in the Tax Certificate and with respect to compliance with the
federal income tax rules affecting the Bonds, and by Bond Counsel in connection with rendering its opinion that the interest on
the Bonds is excluded fi-om gross income for federal income tax purposes, the preparation of the Internal Revenue Service Form
8038-G and other federal income tax advice that it may give to the Issuer from time to time relating to the Bonds.
PURCHASER
Dated:
By:
Name:
vii
SCHEDULE A
EXPECTED OFFERING PRICES
(Attached)
SCHEDULE B
COPY OF UNDERWRITER'S BID
(Attachec�
[ISSUE PRICE CERTIFICATE IF COMPETITIVE SALE REQUIREMENTS ARE NOT MET]
PURCHASER'S CERTIFICATE
The undersigned, on behalf of ("Purchaser"), [on behalf of itself and [NAMES OF OTHER
iJNDERWRITERS] (together, the "Underwriting Group"),] hereby certifies as set forth below with respect to the sale and issuance
of the above-captioned obligations (the`Bonds").
1. Sale of the Bonds. As of the date of this cerrificate,for each Maturity of the Bonds, the first price at which at least 10%
of such Maturiry of the Bonds was sold to the Public is the respective price listed in Schedule A.
3. Defzned Terms.
(d) Issuer means the City of Dubuque,Iowa.
(b� Maturity means Bonds with the same credit and payment terms. Bonds with different maturity dates, or
Bonds with the same maturity date but different stated interest rates, are treated as separate Maturities.
(C� Public means any person(including an individual,trust, estate,partnership, association, company,or corporation)
other than an Underwriter or a related party to an Underwriter. The term"related part}�"far purposes of this certificate generally
means any two or more persons who have greater than 50 percent common ownership,directly or indirectly.
(d� Undenvriter means(i)the Purchaser or any person that agrees pursuant to a written contract with the Issuer (or
with the lead underwriter to form an underwriting syndicate) to participate in the initial sale of the Bonds to the Public,and(ii)
any person that agrees pursuant to a written contract directly or indirectly with a person described in clause(i) of this paragraph to
parricipate in the initial sale of the Bonds to the Public (including a member of a selling group or a party to a retail distribution
agreement participating in the inirial sale of the Bonds to the Public).
The representations set forth in this certificate are limited to factual matters only. Nothing in this certif'icate represents
Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as
amended, and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied
upon by the Issuer with respect to certain of the representations set forth in the Tax Certificate and with respect to compliance
with the federal income tax rules affecting the Bonds,and by Bond Counsel in connection with rendering its opinion that the interest
on the Bonds is excluded from gross income for federal income tax purposes, the preparation of the Internal Revenue Service
Form 8038-G, and other federal income tax advice that it may give to the Issuer fi-om rime to rime relating to the Bonds.
PURCHASER
Dated:
By:
Name:
SCHEDULE A
SALE PRICES
(Attached)
CITY OF DUBUQUE, IOWA
PRELIMINARY OFFICIAL STATEMENT
$29,395,000* General Obligation Bonds, Series 2021A
$12,945,000* Taxable General Obligation Bonds, Series 2021B
INTRODUCTION
This Official Statement contains information relating to the City of Dubuque, Iowa (the "City") and its issuance of
$29,395,000* General Obligation Bonds, Series 2021A (the "Series 2021A Bonds" or the "Exempt Bonds") and
$12,945,000* Taxable General Obligation Bonds (the "Series 2021B Bonds" or the "Taxable Bonds") (collectively the
`Bonds"). This Introduction is not a summary of this Official Statement but is only a brief description of the Bonds and
certain other matters. Such description is qualified by reference to the entire Official Statement and the documents
summarized or described herein. This Official Statement should be reviewed in its entirety. The offering of the Bonds
to potential investors is made only by means of the entire Official Statement, including the appendices attached hereto.
All statements made in this Official Statement involving matters of opinion or of estimates, whether or not so expressly
stated,are set forth as such and not as representations of fact,and no representation is made that any of the estimates wi11
be realized.
Copies of statutes,resolutions,ordinances,reports or other documents referred to herein are available,upon request,from
the Issuer. This Official Statement has been executed on behalf of the City and by its Director of Finance&Budget and
may be distributed in connection with the sale of the Bonds authorized therein. Inquiries may be directed to Independent
Public Advisors,LLC, 5550 Wild Rose Lane, Suite 400,West Des Moines,IA 50266,or by telephoning(515)259-8193.
Information can also be obtained from Ms. Jenny Larson, Director of Finance&Budget, City of Dubuque, 50 West 13tn
Street, Dubuque, Iowa 52001, or by telephoning 563-589-4110.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Division III of Chapter 384 of the Code of Iowa, and resolutions to be adopted
by the City Council of the City. Proceeds of the Series 2021A Bonds will be used to pay costs of various capital
improvement projects including the opening,widening, extending, grading, and draining of the right-of-way of streets,
highways, avenues, alleys and public grounds; the construction, reconstruction, and repairing of any street
improvements; the acquisition, installation, and repair of sidewalks, storm sewers, sanitary sewers,water service lines,
street lighting, and traffic control devices; and the acquisition of any real estate needed for any of the foregoing purposes;
the rehabilitation and improvement of City parks and the acquisition,repair and replacement of facilities, equipment and
improvements commonly found in City parks; equipping the fire department; refunding or refinancing outstanding
indebtedness of the City,including General Obligation Bonds, Series 2012A, General Obligation Bonds, Series 2012B,
General Obligation Bonds, Series 2012E, General Obligation Urban Renewal Bonds, Series 2012H, General Obligation
Bonds, Series 2014B; the acquisition, improvement, and equipping of the fire station and facilities; the construction,
renovation,remodeling, improvement, equipping and repairing of Town Clock Plaza; acquisition and implementation of
computer equipment including financial and utility billing software; acquisition and equipping of a light duty minibus;
and the acquisition and equipping of a heavy duty fixed route bus.
Proceeds of the Series 2021B Bonds will be used to pay costs of the refunding or refinancing outstanding indebtedness of
the City, including Taxable General Obligation Bonds, Series 2012C, Taxable General Obligation Bonds, Series 2012F,
and Taxable General Obligation Bonds, Series 2014C; the reconstruction, expansion of and improvements to the
Riverfront docking facility; and aiding in the planning,undertaking and carrying out of urban renewal projects under the
authority of Chapter 403 and the Amended and Restated Urban Renewal Plan for the Greater powntown Urban Renewal
District, such as those costs associated with the construction,renovation,remodeling, improvement, equipping and
repairing of parking garages and ramps.
1
The following bonds (the "Refunded Bonds") are being refunded by the Series 2021A Bonds. The Refunded Bonds are
being called on June 4,2021 at a call price of 100°/o.
General Obligation Urban Renewal Bonds, Series 2012A:
o6/oi/Zozz zao,000.00 Z.000i
06/O1/2023 zao,000.00 Z.izsi
o6/oi/zoza zas,000.00 Z.Zsoi
o6/oi/zozs zso,000.00 Z.a�si
06/01/2026 260,000.00 2.500%
oa/os/zoz� z�o,000.00 z.soor
oa/os/zozs z�s,000.00 z.�sor
06/O1/2029 285,000.00 3.000%
06/O1/2030 300,000.00 3.000%
06/O1/2031 310,000.00 3.000%
General Obligation Bonds, Series 2012B:
06/01/2022 395,000.00 2.250%
06/01/2023 400,000.00 2.250%
06/01/2024 415,000.00 2.375%
o6/oi/Zozs als,000.00 Z.sooi
06/O1/2026 440,000.00 2.500%
06/O1/2027 455,000.00 3.000%
06/01/2028 470,000.00 3.000%
06/01/2029 485,000.00 3.000%
06/01/2030 505,000.00 3.000%
06/O1/2031 525,000.00 3.125%
General Obligation Bonds, Series 2012E:
o6/oi/Zozz zao,000.00 Z.000i
06/O1/2023 230,000.00 2.125%
06/O1/2024 iss,000.00 Z.Zsoi
06/01/2025 160,000.00 2.375%
06/01/2026 165,000.00 2.500%
oa/os/zoz� vo,000.00 zsoor
o6/oi/Zozs vs,000.00 a.000i
06/O1/2029 165,000.00 3.000%
06/O1/2030 165,000.00 3.000%
06/01/2031 170,000.00 3.000%
06/01/2032 180,000.00 3.000%
General Obligation Urban Renewal Bonds, Series 2012H:
oa/os/zozz Zss,000.00 z.000r
06/O1/2023 iis,000.00 z.iZsi
06/O1/2024 izo,000.00 z.zsoi
o6/oi/Zozs izo,000.00 z.s�si
oa/os/zoz6 Zzs,000.00 z.soor
oa/os/zoz� izs,000.00 z.soor
06/01/2028 130,000.00 2.625%
06/Ol/2029 135,000.00 2.750%
06/O1/2030 iao,000.00 z.�soi
06/Ol/2031 140,000.00 3.000%
06/01/2032* 145,000.00 3.000%
*Term Bond-Final Maturity
General Obligation Bonds, Series 2014B:
06/O1/2022 1,055,000.00 3.000%
06/O1/2023 1,035,000.00 3.000%
06/01/2024 1,055,000.00 3.000%
06/O1/2025 1,090,000.00 3.000%
06/O1/2026 1,040,000.00 3.000%
06/01/2027 1,065,000.00 3.000%
06/O1/2028 1,105,000.00 3.125%
06/01/2029 1,145,000.00 3.250%
06/O1/2030 1,180,000.00 3.375%
06/01/2031 1,200,000.00 3.500%
06/O1/2032 1,24Q000.00 3.500%
06/01/2033 1,285,000.00 3.500%
06/O1/2034 1,325,000.00 3.625%
2
The following bonds (the"Refunded Bonds")are being refunded by the Series 2021B Bonds. The Refunded Bonds are
being called on June 4,2021 at a call price of 100°/o.
Taxable General Obligation Bonds, Series 2012C:
o6/oi/zozz ass,000.00 z.sooi
06/01/2023 350,000.00 2.750%
06/01/2024 360,000.00 3.000%
06/01/2025 375,000.00 3.150%
06/Ol/2026 385,000.00 3.300%
06/Ol/2027 400,000.00 3.450%
o6/oi/zoza ais,000.00 s.ssoi
06/01/2029 430,000.00 3.650%
06/01/2030 445,000.00 3.750%
06/01/2031 465,000.00 3.850%
06/Ol/2032 485,000.00 3.900%
Taxable General Obligation Bonds, Series 2012F:
06/O1/2022 140,000.00 2200%
Taxable General Obligation Capital Loan Notes, Series 2014C:
o6/oi/zozz azs,000.00 s.000i
06/Ol/2023 440,000.00 3.000%
o6/oi/zoza aso,000.00 s.000i
o6/oi/zozs a�o,000.00 s.zooi
06/01/2026 480,000.00 3.350%
06/o1/zoz� soo,000.00 s.soor
06/01/2028 520,000.00 3.650%
06/Ol/2029 540,000.00 4.000%
06/Ol/2030 565,000.00 4.000%
06/Ol/2031 590,000.00 4.000%
06/01/2032 610,000.00 4.000%
06/01/2033 635,000.00 4.125%
06/01/2034 660,000.00 4.125%
The estimated Sources and Uses of the Bonds are as follows:
Sources of Funds Series 2021A Bonds Series 2021B Bonds
Par Amount* $29,395,000* $12,945,000*
Uses of Funds
Project Fund $ $
Redemption - -
Underwriter's $ $
Discount
Cost of $ $
Issuance&
Rounding
Total $29,395,000* $12,945,000*
*Preliminary; subject to change.
OPTIONAL REDEMPTION OF THE BONDS
Bonds due after June l, 2028 will be subject to call prior to maturity in whole, or from time to time in part, in any order of
maturity and within a maturity by lot on said date or on any date thereafter at the option of the City,upon terms of par plus
accrued interest to date of call. Written notice of such call shall be given at least thirty(30) days prior to the date fixed for
redemption to the registered owners of the Bonds to be redeemed at the address shown on the registration books.
3
INTEREST ON THE BONDS
Interest on the Bonds will be payable on December 1, 2021 and semiannually on the lst day of June and December
thereafter. Interest and principal shall be paid to the registered holder of a bond as shown on the records of ownership
maintained by the Registrar on the 15th day of the month preceding said interest payment date(the"Record Date").Interest
will be computed on the basis of a 360-day year of twelve 30-day months and will be rounded pursuant to rules of the
Municipal Securities Rulemaking Board.
PAYMENT OF AND SECURITY FOR THE BONDS
The Bonds are general obligations of the City and the unlimited taxing powers of the City are irrevocably pledged for
their payment. Upon issuance of the Bonds,unless funds are available from other sources,the City will levy taxes for the
years and in amounts sufficient to provide 100°/o of annual principal and interest due. The City is required to levy ad
valorem taxes upon all taxable property in the City without limit as to rate or amount sufficient to pay the debt service
except to the extent that other monies are deposited in the debt service fund for such purposes.
Section 76.2 of the Act provides that when an Iowa political subdivision issues general obligation bonds, the governing
authority of such political subdivision shall,by resolution adopted before issuing the bonds,provide for the assessment of
an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the
bonds. A certified copy of this resolution shall be filed with the county auditor in which the issuer is located,giving rise to
a duty of the auditor to annually enter this levy for collection from the taxable property within the boundaries of the issuer,
until funds are realized to pay the bonds in full.
For the purpose of providing for the levy and collection of a direct annual tax sufficient to pay the principal of and interest
on the Bonds as the same become due, the resolutions authorizing issuance of the Bonds provide for the levy of a tax
sufficient for that purpose, on all the taxable property in the Issuer in each of the years while the Bonds are outstanding.
The Issuer shall file a certified copy of the resolutions with the County Auditor, pursuant to which the County Auditor is
instructed to enter for collection and assess the tax authorized. When annually entering such taxes for collection,the County
Auditor shall include the same as a part of the tax levy for Debt Service Fund purposes of the Issuer and when collected,
the proceeds of the taxes shall be converted into the Debt Service Fund of the Issuer and set aside therein as a special account
to be used solely and only for the payment of the principal of and interest on the Bonds and for no other purpose whatsoever.
Nothing in the resolutions authorizing the Bonds prohibits or limits the ability of the City to use legally available
moneys other than the proceeds of the general ad valorem property taxes levied as described in the preceding
paragraph to pay all or any portion of the principal of or interest on the Bonds. If and to the extent such other legally
available moneys are used to pay the principal of or interest on the Bonds, the City may, but shall not be required to, (a)
reduce the amount of taxes levied for such purpose, as described in the preceding paragraph; or (b) use proceeds of taxes
levied, as described in the preceding paragraph, to reimburse the fund or account from which such other legally available
moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or interest on the
Bonds.
The City's obligation to pay the principal of and interest on the Bonds is on parity with the City's obligation to pay the
principal of and interest on any other of its general obligation debt secured by a covenant to levy taxes within the City,
including any such debt issued or incurred after the issuance of the Bonds. The resolutions authorizing issuance of the
Bonds do not restrict the City's ability to issue or incur additional general obligation debt, although issuance of
additional general obligation debt is subject to the same constitutional and statutory limitations that apply to the issuance
of the Bonds. For a further description of the City's outstanding general obligation debt upon issuance of the Bonds and
the annual debt service on the Bonds, see DIRECT DEBT under INDEBTEDNESS herein. For a description of certain
constitutional and statutory limits on the issuance of general obligation debt, see DEBT LIMIT under INDEBTEDNESS
herein.
RATING
The Bonds are rated" "by Moody's Investor Service ("Moody's"). The rating reflects only the views of Moody's,
and an explanation of the significance of that rating may be obtained only from Moody's and its published materials. The
4
rating described above is not a recommendation to buy, sell or hold the Bonds. There can be no assurance that any rating
will continue for any given period of time or that it will not be revised downward or withdrawn entirely if,in the judgment
of Moody's,circumstances so warrant. Therefore, after the date hereof, investors should not assume that the rating is still
in effect. A downward revision or withdrawal of the rating is likely to have an adverse effect on the market price and
marketability of the Bonds. The Issuer has not assumed any responsibility either to notify the owners of the Bonds of any
proposed change in or withdrawal of any rating subsequent to the date of this Official Statement, except in connection
with the reporting of events as provided in the Continuing Disclosure Certificate, or to contest any revision or withdrawal.
BONDHOLDERS' RISKS
A PROSPECTIVE PURCHASER OF THE BONDS SHOULD BE AWARE THAT THERE ARE CERTAIN
INVESTMENT CONSIDERATIONS ASSOCIATED WITH THE BONDS. EACH PROSPECTIVE
PURCHASER OF THE BONDS IS ENCOURAGED TO READ THIS OFFICIAL STATEMENT IN ITS
ENTIRETY (INCLUDING THE APPENDICES HERETO) IN ORDER TO MAKE A JUDGMENT AS TO
WHETHER THE BONDS ARE AN APPROPRIATE INVESTMENT, AND TO GIVE PARTICULAR
ATTENTION TO THE CONSIDERATIONS DESCRIBED BELOW WHICH, AMONG OTHERS, COULD
AFFECT THE PAYMENT OF DEBT SERVICE AND THE MARKET PRICE ON THE BONDS. THE
FOLLOWING STATEMENTS REGARDING CERTAIN INVESTMENT CONSIDERATIONS SHOULD NOT
BE CONSIDERED A COMPLETE DESCRIPTION OF ALL CONSIDERATIONS IN THE DECISION TO
PURCHASE THE BONDS.
POTENTIAL IMPACT OF THE CORONAVIRUS
In recent months, a strain of coronavirus commonly known as COVID-19 has spread globally, negatively affecting global,
state, and local economies and possibly sparking a recession. Federal, State, and local officials are taking steps to curb the
spread of the virus, including providing both discretionary and mandatory guidelines and orders regarding public
gatherings, and imposing mandatory closings of some businesses. The State of Iowa may suffer material adverse
consequences from the continued spread of COVID-19,which could affect the amount of State revenues appropriated to
municipalities, including the City. The spread of the virus could reduce sales tax and other revenue collections,property
valuations and other revenue sources dependent on local business activity,which is likely to be slower.
The City did not experience material reductions in revenue or material increases in expenses in fiscal year 2020 due to
COVID-19. Lower parking, sales tax and gaming collections, as well as reduced parks and recreation and other program
fees,reduced fine and permit revenues and higher unpaid property taxes have negatively impacted the City's general
fund. However,the net Fiscal Year 2020 revenue loss of$1,906,023 was covered by frozen position savings, frozen
travel, equipment replacements that were re-budgeted in a future fiscal year, and unexpended budgets. The City expects
that any future material COVID-19-related financial impacts will be covered by these actions and federal and state
funding. It is too soon, however,to fully predict what future COVID-19-related financial impacts the Ciry may experience
and whether any such financial impacts will be material.
The City cannot predict whether continued spread of the disease will materially impact its financial condition,including
the collection of tax revenues in fiscal year 2021 or beyond. The spread of the virus could negatively affect the City's
financial condition, including, among others, lower property values, a delay in property tax collections, and other
unpredicted unforeseen consequences,which may affect the City's ability to pay principal of and interest on the Bonds.
The Bonds are general obligations of the City. See"PAYMENT AND SECURITY FOR THE BONDS"herein.
This information is based on current information available to the City that may be incomplete and unknown. This
information was derived using certain assumptions and methodologies and includes unaudited financial information and
projections. Some of this information is forward-looking and subject to change.
Rating Loss: Moody's Investors Service("Moody's")has assigned a rating of" "to the Bonds. Generally, a rating
agency bases its rating on the information and materials furnished to it and on investigations, studies and assumptions of its
own. There is no assurance that the rating with continue for any given period of time,or that such rating will not be revised,
suspended or withdrawn, if, in the judgment of Moody's, circumstances so warrant. A revision, suspension or withdrawal
5
of a rating may have an adverse effect on the market price of the Bonds.Furthermore, additional future regulation of rating
agencies could materially alter the methodology,rating levels,and types of ratings available,for example,and these changes,
if ever, could materially affect the market value of the Bonds.
Loss of Tax Exemption: As discussed under the heading"TAX MATTERS"herein,the interest on the Exempt Bonds could
become includable in gross income for purposes of federal income taxation retroactive to the date of delivery of the Exempt
Bonds, as a result of acts or omissions of the Issuer in violation of its covenants in the resolutions authorizing issuance of
the Bonds. Should such an event of taxability occur, the Exempt Bonds would not be subject to a special prepayment and
would remain outstanding until maturity or until prepaid under the prepayment provisions contained in the Exempt Bonds,
and there is no provision for an adjustment of the interest rate on the Exempt Bonds. It is also possible that actions of the
Issuer after the closing of the Exempt Bonds will alter the tax status of the Exempt Bonds, and, in the extreme, remove the
tax-exempt status from the Exempt Bonds. In that instance, the Exempt Bonds are not subject to mandatory prepayment,
and the interest rate on the Exempt Bonds does not increase or otherwise reset. A determination of taxability on the Exempt
Bonds, after closing of the Exempt Bonds, could materially adversely affect the value and marketability of the Exempt
Bonds.
Additional Indebtedness: The City reserves the right to issue additional bonds payable from the same sources and ranking
on a parity with each series of the Bonds.
Suitability of Investment: The interest rate borne by the Bonds is intended to compensate the investor for assuming the risk
of investing in the Bonds. Each prospective investor should carefully examine this Official Statement and its own financial
condition to make a judgment as to its ability to bear the economic risk of such an investment,and whether or not the Bonds
are an appropriate investment for such investor.
Cvbersecurit� The City,like many other public and private entities,relies on a large and complex technology environment
to conduct its operations. As such, it may face multiple cybersecurity threats including but not limited to,hacking, viruses,
malware and other attacks on computer or other sensitive digital systems and networks.There can be no assurances that any
security and operational control measures implemented by the City will be completely successful to guard against and
prevent cyber threats and attacks. The result of any such attacks could impact business operations and/or digital netwarks
and systems and the costs of remedying any such damage could be significant. The City the was the subject of a phishing
attack in 2020 during which certain confidential employee information was compromised. Employees who were affected
were notified and the City is not aware of any monetary liability resulting from the incident. The City has implemented
regular training to guard against future intrusions.
Loss of Tax Base
Economic and other factors beyond the City's control,such as economic recession,deflation of property values,or financial
difficulty or bankruptcy by one or more major property taxpayers, or the complete or partial destruction of taxable property
caused by,among other eventualities,earthquake,flood,fire or other natural disaster,could cause a reduction in the assessed
value within the corporate boundaries of the City. In addition, the State of Iowa has been susceptible to tornados, flooding
and other extreme weather wherein winds and flooding have from time to time caused significant damage,which may have
an adverse impact on the City's financial position.
DTC-Beneficial Owners: Beneficial Owners of the Bonds may experience some delay in the receipt of distributions of
principal of and interest on the Bonds since such distributions will be forwarded by the Paying Agent to DTC and DTC will
credit such distributions to the accounts of the Participants which will thereafter credit them to the accounts of the Beneficial
Owner either directly or indirectly through indirect Participants. Neither the Issuer nor the Paying Agent will have any
responsibility or obligation to assure that any such notice or payment is forwarded by DTC to any Participants or by any
Participant to any Beneficial Owner.
In addition, since transactions in the Bonds can be effected only through DTC Participants,indirect participants and certain
banks,the ability of a Beneficial Owner to pledge the Bonds to persons or entities that do not participate in the DTC system,
or otherwise to take actions in respect of such Bonds,may be limited due to lack of a physical certificate. Beneficial Owners
will be permitted to exercise the rights of registered Owners only indirectly through DTC and the Participants. See`BOOK
ENTRY-ONLY ISSUANCE."
6
Secondary Market: There can be no guarantee that there will be a secondary market for the Bonds or,if a secondary market
exists,that such Bonds can be sold for any particular price. Occasionally,because of general market conditions or because
of adverse history of economic prospects connected with a particular issue,and secondary marketing practices in connection
with a particular Bond or Bonds issue are suspended or terminated. Additionally,prices of bond or note issues for which a
market is being made will depend upon then prevailing circumstances. Such prices could be substantially different from
the original purchase price of the Bonds.
EACH PROSPECTIVE PURCHASER IS RESPONSIBLE FOR ASSESSING THE MERITS AND RISKS OF AN
INVESTMENT IN THE BONDS AND MUST BE ABLE TO BEAR THE ECONOMIC RISK OF SUCH
INVESTMENT. THE SECONDARY MARKET FOR THE BONDS, IF ANY, COULD BE LIMITED.
Insolvencv: The rights and remedies provided in the resolutions authorizing the issuance of the Bonds may be limited by
and are subject to the provisions of federal bankruptcy laws, to other laws or equitable principles that may affect the
enforcement of creditor's rights,to the exercise of judicial discretion in appropriate cases and to limitations in legal remedies
against exercise of judicial discretion in appropriate cases and to limitations on legal remedies against municipal
corporations in the State of Iowa. The various opinions of counsel to be delivered with respect to the Bonds and the
resolutions authorizing the issuance of the Bonds, including the opinions of Bond Counsel, will be similarly qualified. In
the event the Issuer fails to comply with its covenants under the resolutions authorizing the issuance of the Bonds or fails
to make payments on the Bonds, there can be no assurance of the availability of remedies adequate to protect the interests
of the holders of the Bonds.
Forward-Looking Statements: This Official Statement contains statements relating to future results that are "forward-
looking statements" as defined in the Private Securities Litigation Reform Act of 1995. When used in this Official
Statement, the words "estimate," "forecast," "intend," "expect" and similar expressions identify forward-looking
statements. Any forward-looking statement is subject to uncertainty. Accordingly, such statements are subject to risks that
could cause actual results to differ, possibly materially, from those contemplated in such forward-looking statements.
Inevitably, some assumptions used to develop forward-looking statements will not be realized or unanticipated events and
circumstances may occur. Therefore, investors should be aware that there are likely to be differences between forward
looking statements and the actual results. These differences could be material and could impact the availability of funds of
the Issuer to pay debt service when due on the Bonds.
Redemption of Bonds: Bonds due after June 1,2028 will be subject to call prior to maturity in whole, or from time to time
in part,in any order of maturity and within a maturity by lot on said date or on any date thereafter at the option of the City,
upon terms of par plus accrued interest to date of call.The redemption of the Bonds prior to their stated maturity may subject
Bondholders to the risk of reinvestment at a time when comparable returns are not available.
Tax Matters and Loss of Tax Exemption:As discussed under the heading"FEDERAL TAX MATTERS"herein,the interest
on the Exempt Bonds could become includable in gross income for purposes of federal income taxation retroactive to the
date of delivery of the Exempt Bonds, as a result of acts or omissions of the Issuer in violation of its covenants in the
resolutions authorizing the issuance of the Exempt Bonds. Should such an event of taxability occur, the Exempt Bonds
would not be subject to a special redemption and would remain outstanding until maturity or until redeemed under the
redemption provisions contained in the Exempt Bonds, and there is no provision for an adjustment of the interest rate on
the Exempt Bonds.
It is possible that actions of the Issuer after the closing of the Exempt Bonds will alter the tax status of the Exempt Bonds,
and, in the extreme, remove the tax-exempt status from the Exempt Bonds. In that instance, the Exempt Bonds are not
subject to mandatory prepayment, and the interest rate on the Exempt Bonds does not increase or otherwise reset. A
determination of taxability on the Exempt Bonds,after closing of the Exempt Bonds, could materially adversely affect the
value and marketability of the Exempt Bonds.
Proposed Federal Tax Legislation: From time to time, Presidential proposals, federa] legislative committee proposals or
legislative proposals are made that would,if enacted, alter or amend one or more of the federal tax matters described herein
in certain respects or would adversely affect the market value of the Bonds. It is possible that further legislation will be
7
proposed or introduced that could result in changes in the way that tax exemption is calculated,or whether interest on certain
securities are exempt from taxation at all. It cannot be predicted whether or in what forms any of such proposals that may
be introduced, may be enacted and there can be no assurance that such proposals will not apply to the Bonds. See "TAX
MATTERS"herein.
Tax Lew Procedures: The Bonds are general obligations of the Issuer,payable from and secured by a continuing ad valorem
tax levied against all of the property valuation within the Issuer. As part of the budgetary process each fiscal year,the Issuer
will have an obligation to request a debt service levy to be applied against all of the taxable property within the Issuer. A
failure on the part of the Issuer to make a timely levy request or a levy request by the Issuer that is inaccurate or is insufficient
to make full payments of the debt service of the Bonds for a particular fiscal year may cause Bondholders to experience
delay in the receipt of distributions of principal of and/or interest on the Bonds. In the event of a default in the payment of
principal of or interest on the Bonds, there is no provision for acceleration of maturity of the principal of the Bonds.
Consequently, the remedies of the owners of the Bonds (consisting primarily of an action in the nature of mandamus
requiring the Issuer and certain other public officials to perform the terms of the resolution for the Bonds) may have to be
enforced from year to year.
Notwithstanding the foregoing, Iowa Code section 76.2 provides when an Iowa political subdivision issues bonds, "the
governing authority of these political subdivisions before issuing bonds shall,by resolution,provide for the assessment of
an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest and principal of the
bonds within a period named not exceeding twenty years. A certified copy of this resolution shall be filed with the county
auditor or auditors of the counties in which the political subdivision is located; and the filing shall make it a dury of the
auditor(s) to enter annually this levy for collection from the taxable property within the boundaries of the political
subdivision until funds are realized to pay the bonds in full."
Utility Propertv Tax Replacement: Property owned by entities involved primarily in the production, delivery, service and
sale of electricity and natural gas("Utilities")pay a replacement tax based upon the delivery of energy by Utilities in lieu
of property taxes. All replacement taxes are allocated among local taxing bodies by the State Department of Revenue and
the Department of Management. This allocation is made in accordance with a general allocation formula developed by the
Department of Management on the basis of general property tax equivalents.Utility properties paying the replacement tax
are exempt from the levy of property tax by political subdivisions.In addition to the replacement tax,Utility property will
continue to be valued by a special method as provided in the statute and taxed at the rate of three cents per one thousand
dollars for the general fund of the State.
By statute, the replacement tax collected by the State and allocated among local taxing bodies (including the City) shall
be treated as property tax when received and shall be disposed of by the county treasurer as taxes on real estate. It is
possible that the general obligation debt capacity of the City could be adjudicated to be proportionately reduced in future
years if Utility property were determined to be other than "taxable property" for purposes of computing the City's debt
limit under Article XI of the Constitution of the State of Iowa. There can be no assurance that future legislation will not
(i) operate to reduce the amount of debt the Ciry can issue or (ii) adversely affect the City's abiliry to levy taxes in the
future for the payment of the principal of and interest on its outstanding debt obligations, including the Bonds.
2013 Propertv Tax Le�islation: During its 2013 session the Iowa Legislature enacted,and the Governor signed legislation
that, among other things, reduces the limit on annual assessed value growth with respect to residential and agricultural
property from 4°/o to 3%,reduces as a rollback the taxable value applicable to commercial,industrial and railroad property
to 95%for the 2013 assessment year and 90%for the 2014 assessment year and all years thereafter, and provides a partial
exemption on telecommunications property. The legislation also created a new separate classification for multiresidential
properties which were previously taxed as commercial properties, and assigns an incremental rollback percentage over
several years for multiresidential properties such that the multiresidential rollback determination will match that for
residential properties in the 2022 assessment year. As a result of this legislation, local governments expect to experience
reductions in property tax revenues over the next several fiscal years. The legislation includes state-funded replacement
moneys for a portion of the expected reduction in property tax revenues to the local governments, but such replacement
funding is limited in both amount and duration of availability. There can be no assurance the state-funded replacement
moneys will be provided by the state, if at all, during the term the Bonds remain outstanding. The Issuer does not expect
the state replacement funding to fully address the property tax reductions resulting from the legislation during the term the
8
Bonds remain outstanding. The legislation does not limit the legal obligation of the Issuer to pay debt service on the Bonds
or the amount the Issuer is required to levy for payments of debt service on the Bonds,however,there can be no assurances
that it will not have a material adverse impact with respect to the Issuer's financial position.
Changes in Property Taxation: From time to time the Iowa General Assembly has altered the method of properry taxation
and could do so again. Any alteration in property taxation structure could affect property tax revenues available to pay
the Bonds. It cannot be predicted whether or in what forms any of such proposals may be enacted, and there can be no
assurance that such proposals will not apply to valuation, assessment or levy procedures for the levy of taxes by the City.
Historically, the Iowa General Assembly has applied changes in property taxation structure on a prospective basis;
however, there is no assurance that future changes in property taxation structure by the Iowa General Assembly will not
be retroactive. It is impossible to predict the outcome of future property tax changes by the Iowa General Assembly or
their potential impact on the Bonds and the security for the Bonds.
During the 20191egislative session,the Iowa General Assembly passed Senate File 634 which is subject to approval by the
Governor as of May 20, 2019. If signed into law, this bill modifies the process for hearing and approval of the total
maximum property tax dollars under certain levies in the city budget,including levies for the General Fund,the Emergency
Fund, Trust and Agency Funds for pensions, insurance, transit, civic centers, certain bridges, sanitary disposal, and
emergency management. The bill also includes a provision that will require the affirmative vote of 2/3 of the city council
when the maximum property tax dollars under these levies exceed an amount determined under a prescribed formula.
The bill does not change the process for hearing and approval of the Debt Service Levy pledged for repayment of the Bonds.
It is too early to evaluate the affect this legislation,if signed into law, will have on the overall financial position of the City
or its ability to fund essential services.
Continuing Disclosure: A failure by the City to comply with continuing disclosure obligations (see "CONTINUING
DISCLOSURE" herein) will not constitute an event of default on the Bonds. Any such failure must be disclosed in
accordance with Rule 15c2-12(the"Rule")adopted by the Securities and Exchange Commission(the"Commission")under
the Securities Exchange Act of 1934, as amended(the "Exchange Act"), and may adversely affect the transferability and
liquidity of the Bonds and their market price.
Federal Funds Orders and State Funds Le,�islation: Various federal executive orders, and a law (SF 481) which became
effective July 1, 2018 (collectively "ICE Enforcement Initiatives"), impose requirements intended to ensure compliance
with the federal immigration detainment processes. The ICE Enforcement Initiatives impose various penalties for non-
compliance, including the loss of state and/or federal funding under certain circumstances. The loss of state and/or federal
funds in any significant amount could negatively impact the City's overall financial position and may affect its rating.
However,the Bonds are secured by a debt service levy upon real property in the jurisdictional limits of the City and are not
secured by state or federal funds. Iowa Code section 76.2 provides that when an Iowa political subdivision issues general
obligation bonds, "the governing authority of these political subdivisions before issuing bonds shall,by resolution,provide
for the assessment of an annual levy upon all the taxable property in the political subdivision sufficient to pay the interest
and principal of the bonds within a period named not exceeding twenty years. A certified copy of this resolution shall be
filed with the county auditor or the auditors of the counties in which the political subdivision is located; and the filing shall
make it a duty of the auditors to enter annually this levy for collection from the taxable property within the boundaries of
the political subdivision until funds are realized to pay the bonds in full."
Pension and OPEB Information: The Issuer contributes to the Iowa Public Employees' Retirement System ("IPERS"),
which is a state-wide multiple-employer cost sharing defined benefit pension plan administered by the State of Iowa.IPERS
provides retirement and death benefits which are established by State statute to plan members and beneficiaries. All full-
time employees of the Issuer are required to participate in IPERS unless covered by another retirement system.IPERS plan
members are required to contribute a percentage of their annual salary, in addition to the Issuer being required to make
annual contributions to IPERS. Contribution amounts are set by State statute.
The City's total contributions to IPERS for the year ended June 30,2020 were$2,459,936. The Dubuque Metropolitan Area
Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2020 were $62,182. At June 30, 2020, the
9
City reported a liability of$19,350,354 for its proportionate share of the net pension liability. The net pension liability was
measured as of June 30, 2019, 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, 2019, the City's
collective proportion was .33194%which was a decrease of-0.00135% from its proportion measured as of June 30, 2018.
While the Issuer's contributions to IPERS are controlled by state law, there can be no assurance the Issuer will not be
required by changes in State law to increase its contribution requirement in the future, which may have the effect of
negatively impacting the finances of the Issuer.
Employees of the Issuer are provided with pensions through a cost-sharing multiple employer defined benefit pension plan
administered by MFPRSI. MFPRSI membership is mandatory for fire fighters and police officers covered by the provisions
of chapter 411 of the Code of Iowa. Member contributions rates are set by state statute. Employer contribution rates are
based upon an actuarially determined normal contribution rate and set by state statute. The City's contributions to MFPRSI
for the year ended June 30, 2020 was $3,631,952. At June 30, 2020, the City reported a liability of$30,775,196 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2019, and the total
pension liability used to calculate the new 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 the pension plan relative to
the contributions of all MFPRSI participating employers. At June 30, 2019, the City's proportion was 4.691866% which
was a decrease of 0.172025% from its proportions measured as of June 30, 2018.While the Issuer's contributions to
MFPRSI are controlled by state law, there can be no assurance the Issuer will not be required by changes in State law to
increase its contribution requirement in the future, which may have the effect of negatively impacting the finances of the
Issuer.
See APPENDIX A and APPENDIX D — AUDITED FINANCIAL STATEMENTS OF THE ISSUER, Note 11" for
additional information on pension and liabilities of the Issuer.
Bond Counsel, Disclosure Counsel, the Municipal Advisor, and the Issuer undertake no responsibility for and make no
representations as to the accuracy or completeness of the information available from IPERS or MFPRSI discussed above
or included on the IPERS or MFPRSI websites, including, but not limited to, updates of such information on the State
Auditor's website or links to other Internet sites accessed through the IPERS of MFPRSI websites.
The City operates a single-employer health 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 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. The City's OPEB liability of$5,882,693 was
measured as of June 30,2020 and was determined by an actuarial valuation as of June 30,2020. There can be no assurance
that costs under this plan will not increase over time, which may negatively affect the finances of the Issuer. See
APPENDIX D — AUDITED FINANCIAL STATEMENTS OF THE ISSUER, Note 10" for additional information on
OPEB.
Matters Relatin�to Enforceability of A�reements: Bondholders shall have and possess all the rights of action and remedies
afforded by the common law,the Constitution and statutes of the State of Iowa and of the United States of America for the
enforcement of payment of the Bonds, including, but not limited to, the right to a proceeding in law or in equity by suit,
action or mandamus to enforce and compel performance of the duties required by Iowa law and the Resolution.
The practical realization of any rights upon any default will depend upon the exercise of various remedies specified in the
resolutions authorizing the issuance of the Bonds. The remedies available to the Bondholders upon an event of default
under the resolutions authorizing the issuance of the Bonds, in certain respects, may require judicial action,which is often
subject to discretion and delay. Under existing law, including specifically the federal bankruptcy code, certain of the
remedies specified in the resolutions authorizing the issuance of the Bonds may not be readily available or may be limited.
A court may decide not to order the specific performance of the covenants contained in these documents. The legal opinions
to be delivered concurrently with the delivery of the Bonds will be qualified as to the enforceability of the various legal
instruments by limitations imposed by general principles of equity and public policy and by bankruptcy, reorganization,
insolvency or other similar laws affecting the rights of creditors generally. The various opinions of counsel to be delivered
10
with respect to the Bonds will be similarly qualified.
No representation is made, and no assurance is given,that the enforcement of any remedies with respect to such assets will
result in sufficient funds to pay all amounts due under the resolutions authorizing the issuance of the Bonds, including
principal of and interest on the Bonds.
Summarv: An investment in the Bonds involves an element of risk. The foregoing is intended only as a summary of certain
risk factors attendant to an investment in the Bonds. In order for potential investors to identify risk factors and make an
informed investment decision, potential investors should become thoroughly familiar with this entire Official Statement
and the Appendices hereto.
BOOK-ENTRY-ONLY ISSUANCE
The information contained in the following paragraphs of this subsection `Book-Entry-Only Issuance" has been
extracted from a schedule prepared by Depository Trust Company (`DTC) entitled "SAMPLE OFFERING
DOCUMENT LANGUAGE DESCRIBING DTC AND BOOK-ENTRY-ONLY ISSUANCE." The information in this
section concerning DTC and DTCs book-entry system has been obtained from sources that the City believes to be
reliable, but the City takes no responsibility for the accuracy thereof.
The Depository Trust Company ("DTC"), New Yark, NY, will act as securities depository for the securities (the
"Securities"). The Securities will be issued as fully-registered securities registered in the name of Cede & Co. (DTC's
partnership nominee) or such other name as may be requested by an authorized representative of DTC. One fully-
registered Security certificate will be issued for each issue of the Securities, each in the aggregate principal amount of
such issue, and will be deposited with DTC. If, however, the aggregate principal amount of any issue exceeds $500
million, one certificate will be issued with respect to each $500 million of principal amount, and an additional
certificate will be issued with respect to any remaining principal amount of such issue.
DTC, the world's largest securities depository, is a limited-purpose trust company organized under the New York
Banking Law, a "banking organization" within the meaning of the New York Banking Law, a member of the Federal
Reserve System, a "clearing corporation" within the meaning of the New York Uniform Commercial Code, and a
"clearing agency" registered pursuant to the provisions of Section 17A of the Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 million issues of U.S. and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments from over 100 countries that DTC's participants (the "Direct
Participants") deposit with DTC. DTC also facilitates the post-trade settlement among Direct Participants of sales and
other securities transactions in deposited securities, through electronic computerized book-entry transfers and pledges
between Direct Participants' accounts. This eliminates the need for physical movement of securities certificates.
Direct Participants include both U.S. and non-U.S. securities brokers and dealers, banks, trust companies, clearing
corporations, and certain other organizations. DTC is a wholly-owned subsidiary of The Depository Trust & Clearing
Corporation ("DTCC"). DTCC is the holding company for DTC, National Securities Clearing Corporation and Fixed
Income Clearing Corporation, all of which are registered clearing agencies. DTCC is owned by the users of its
regulated subsidiaries. Access to the DTC system is also available to others such as both U.S. and non-U.S. securities
brokers and dealers, banks, trust companies, and clearing corporations that clear through or maintain a custodial
relationship with a Direct Participant, either directly or indirectly (the "Indirect Participants"). DTC has Standard &
Poor's highest rating: AA+. The DTC Rules applicable to its Participants are on file with the Securities and Exchange
Commission. More information about DTC can be found at www.dtcc.com and www.dtc.org.
Purchases of Securities under the DTC system must be made by or through Direct Participants, which will receive a
credit for the Securities on DTC's records. The ownership interest of each actual purchaser of each Security (the
`Beneficial Owner")is in turn to be recorded on the Direct and Indirect Participants' records. Beneficial Owners will not
receive written confirmation from DTC of their purchase. Beneficial Owners are, however, expected to receive written
confirmations providing details of the transaction, as well as periodic statements of their holdings, from the Direct or
Indirect Participant through which the Beneficial Owner entered into the transaction. Transfers of ownership interests in
the Securities are to be accomplished by entries made on the books of Direct and Indirect Participants acting on behalf
of Beneficial Owners. Beneficial Owners will not receive certificates representing their ownership interests in Securities,
11
except in the event that use of the book-entry system for the Securities is discontinued.
To facilitate subsequent transfers, all Securities deposited by Direct Participants with DTC are registered in the name of
DTC's partnership nominee, Cede & Co., or such other name as may be requested by an authorized representative of
DTC. The deposit of Securities with DTC and their registration in the name of Cede & Co. or such other DTC nominee
do not affect any change in beneficial ownership. DTC has no knowledge of the actual Beneficial Owners of the Securities;
DTC's records reflect only the identity of the Direct Participants to whose accounts such Securities are credited, which
may or may not be the Beneficial Owners. The Direct and Indirect Participants will remain responsible for keeping account
of their holdings on behalf of their customers.
Conveyance of notices and other communications by DTC to Direct Participants, by Direct Participants to Indirect
Participants, and by Direct Participants and Indirect Participants to Beneficial Owners will be governed by arrangements
among them, subject to any statutory or regulatory requirements as may be in effect from time to time.Beneficial Owners
of Securities may wish to take certain steps to augment the transmission to them of notices of significant events with
respect to the Securities, such as redemptions, tenders, defaults, and proposed amendments to the Security documents.
For example, Beneficial Owners of Securities may wish to ascertain that the nominee holding the Securities for their
benefit has agreed to obtain and transmit notices to Beneficial Owners. In the alternative,Beneficial Owners may wish
to provide their names and addresses to the Registrar and request that copies of notices be provided directly to them.
Redemption notices shall be sent to DTC. If less than all of the Securities within an issue are being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct Participant in such issue to be redeemed. Neither
DTC nor Cede & Co., nor any other DTC nominee, will consent or vote with respect to Securities unless authorized
by a Direct Participant in accordance with DTC's MMI Procedures. Under its usual procedures, DTC mails an Omnibus
Proxy to the City as soon as possible after the record date. The Omnibus Proxy assigns Cede & Co.'s consenting or
voting rights to those Direct Participants to whose accounts Securities are credited on the record date identified in a
listing attached to the Omnibus Proxy.
Redemption proceeds, distributions, and dividend payments on the Securities will be made to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC. DTC's practice is to credit Direct
Participants' accounts upon DTC's receipt of funds and corresponding detail information from the City or Agent, on
payable date in accordance with their respective holdings shown on DTC's records. Payments by Participants to
Beneficial Owners will be governed by standing instructions and customary practices, as is the case with securities
held for the accounts of customers in bearer form or registered in "street name," and will be the responsibility of such
Participant and not of DTC, Agent, or the City, subject to any statutory or regulatory requirements as may be in effect
from time to time. Payment of redemption proceeds, distributions, and dividend payments to Cede & Co., or such
other nominee as may be requested by an authorized representative of DTC, is the responsibility of the City or Agent,
disbursement of such payments to Direct Participants will be the responsibility of DTC, and disbursement of such
payments to the Beneficial Owners will be the responsibility of Direct and Indirect Participants.
A Beneficial Owner shall give notice to elect to have its Securities purchased or tendered, through its Participant, to
Tender/Remarketing Agent, and shall effect delivery of such Securities by causing the Direct Participant to transfer the
Participant's interest in the Securities, on DTC's records, to Tender/Remarketing Agent. The requirement for physical
delivery of Securities in connection with an optional tender or a mandatory purchase will be deemed satisfied when the
ownership rights in the Securities are transferred by Direct Participants on DTC's records and followed by a book-
entry credit of tendered Securities to Tender/Remarketing Agent's DTC account.
DTC may discontinue providing its services as depository with respect to the Securities at any time by giving
reasonable notice to the City or Agent. Under such circumstances, in the event that a successor depository is not
obtained, Security certificates are required to be printed and delivered.
The City may decide to discontinue use of the system of book-entry-only transfers through DTC (or a successor
securities depository). In that event, Security certificates will be printed and delivered to DTC.
The information in this section concerning DTC and DTC's book-entry system has been obtained from sources that the
12
City believes to be reliable,but the City takes no responsibility for the accuracy thereof.
FUTURE FINANCING
The City regularly evaluates its debt for refunding opportunities, however there are no other general obligation issuances
planned.
LITIGATION
The Issuer encounters litigation occasionally, in the ordinary course of business; however, there is no litigation of any
nature now pending or threatened restraining or enjoining the issuance, sale, execution or delivery of the Bonds,or in any
way contesting or affecting the validity of the Bonds or any proceedings of the City taken with respect to the issuance or
sale thereo£ There is no litigation now pending,or to the knowledge of the City,threatened against the City that is expected
to materially impact the financial condition of the City.
DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in the payment of principal or interest on its debt.
LEGAL MATTERS
The Bonds are subject to approval as to certain matters by Ahlers&Cooney,P.C. of Des Moines,Iowa as Bond Counsel.
Bond Counsel has not participated in the preparation of this Official Statement and will not pass upon its accuracy,
completeness or sufficiency. Bond Counsel has not examined,nor attempted to examine or verify, any of the financial or
statistical statements or data contained in this Official Statement, and will express no opinion with respect thereto. The
FORM OF LEGAL OPINIONS as set out in APPENDIX B to this Official Statement,will be delivered at closing.Ahlers
&Cooney,PC is also serving as Disclosure Counsel for the City in connection with the issuance of the Bonds.
The legal opinions to be delivered concurrently with the delivery of the Bonds express the professional judgment of the
attorneys rendering the opinions as to legal issues expressly addressed therein. By rendering legal opinions, the opinion
giver does not become an insurer or guarantor of the result indicated by that expression of professional judgment, or of
the transaction on which the opinions are rendered,or of the future performance of parties to the transaction.Nor does the
rendering of opinions guarantee the outcome of any legal dispute that may arise out of the transaction.
There is no bond trustee or similar person to monitor or enforce the provisions of the authorizing resolutions for the Bonds.
The owners of the Bonds should,therefore,be prepared to enfarce such provisions themselves if the need to do so arises.
In the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of
maturity of the principal of the Bonds. Consequently,the remedies of the owners of the Bonds (consisting primarily of an
action in the nature of mandamus requiring the City and certain other public officials to perform the terms of the resolutions
for the Bonds) may have to be enforced from year to year. The obligation to pay general ad valorem property taxes is
secured by a statutory lien upon the taxed property but is not an obligation for which a property owner may be held
personally liable in the event of a deficiency. The owners of the Bonds cannot foreclose on properry within the boundaries
of the City or sell such property in order to pay the debt service on the Bonds. See LEVIES AND TAX COLLECTIONS
herein, for a description of property tax collection and enforcement.
In addition, the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth
in Bond Counsel's opinions. The remedies available to the owners of the Bonds upon an event of default under the
resolutions authorizing issuance of the Bonds (the `Bond Resolutions"), in certain respects, may require judicial action,
which is often subject to discretion and delay. Under existing law, including specifically the federal bankruptcy code,
certain of the remedies specified in the Bond Resolution may not be readily available or may be limited. A court may
decide not to order the specific performance of the covenants contained in these documents. The opinions will state, in
part, that the obligations of the Ciry with respect to the Bonds may be subject to bankruptcy, insolvency, reorganization,
moratorium and other similar laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally
applicable,to the exercise of judicial discretion in appropriate cases and to the exercise by the State and its governmental
13
bodies of the police power inherent in the sovereignty of the State and to the exercise by the United States of America of
the powers delegated to it by the Constitution of the United States of America.
No representation is made, and no assurance is given, that the enforcement of any remedies with respect to such assets
will result in sufficient funds to pay all amounts due under the Bond Resolutions, including principal of and interest on
the Bonds.
TAX MATTERS
Federal Tax Matters with Respect to the Series 2021A Bonds(the"Exempt Bonds")
Tax Exemptions and Related Considerations: Federal tax law contains a number of requirements and restrictions that apply
to the Exempt Bonds. These include investment restrictions, periodic payments of arbitrage profits to the United States,
requirements regarding the proper use of bond proceeds and facilities financed with bond proceeds, and certain other
matters. The City has covenanted to comply with all requirements that must be satisfied in order for the interest on the
Exempt Bonds to be excludable from gross income for federal income tax purposes. Failure to comply with certain of such
covenants could cause interest on the Exempt Bonds to become includable in gross income for federal income tax purposes
retroactively to the date of issuance of the Exempt Bonds.
Subject to the City's compliance with the above referenced covenants,under present law, in the opinion of Bond Counsel,
interest on the Exempt Bonds is excludable from gross income of the owners thereof for federal income tax purposes, and
is not included as an item of tax preference in computing the federal alternative minimum tax.
Prospective purchasers of the Exempt Bonds should be aware that ownership of the Bonds may result in collateral federal
income tax consequences to certain taxpayers, including, without limitation, corporations subject to the branch profits tax,
financial institutions, certain insurance companies, certain S corporations, individual recipients of Social Security or
Railroad Retirement benefits and taxpayers who may be deemed to have incurred (or continued) indebtedness to purchase
or carry tax-exempt obligations. Bond Counsel will not express any opinion as to such collateral tax consequences.
Prospective purchasers of the Exempt Bonds should consult their tax advisors as to collateral federal income tax
consequences.
Not Qualified Tax-Exempt Obli ations: The City will NOT designate the Exempt Bonds as "qualified tax- exempt
obligations" under the exception provided in Section 265(b)(3) of the Internal Revenue Code of 1986, as amended (the
"Code").
Tax Accountin�Treatment of Discount and Premium on Certain Bonds: The initial public offering price of certain Exempt
Bonds (the "Discount Bonds") may be less than the amount payable on such Bonds at maturity. An amount equal to the
difference between the initial public offering price of Discount Bonds (assuming that a substantial amount of the Discount
Bonds of that maturity are sold to the public at such price) and the amount payable at maturity constitutes original issue
discount to the initial purchaser of such Discount Bonds. Owners of Discount Bonds should consult with their own tax
advisors with respect to the determination of accrued original issue discount on Discount Bonds for federal income tax
purposes and with respect to the state and local tax consequences of owning and disposing of Discount Bonds. It is possible
that, under applicable provisions governing determination of state and local income taxes, accrued interest on Discount
Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash payment.
The initial public offering price of certain Exempt Bonds("Premium Bonds")may be greater than the amount of such Bonds
at maturity. An amount equal to the difference between the initial public offering price of Premium bonds (assuming that
a substantial amount of the Premium Bonds of that maturity are sold to the public at such price) and the amount payable at
maturity constitutes a premium to the initial purchaser of such Premium Bonds. Purchasers of the Premium Bonds should
consult with their own tax advisors with respect to the determination of amortizable bond premium on Premium Bonds for
federal income tax purposes and with respect to the state and local tax consequences of owning and disposing of Premium
Bonds.
Other Tax Advice: In addition to the income tax consequences described above, potential investors should consider the
14
additional tax consequences of the acquisition,ownership,and disposition of the Exempt Bonds. For instance,state income
tax law may differ substantially from state to state, and the foregoing is not intended to describe any aspect of the income
tax laws of any state. Therefore,potential investors should consult their own tax advisors with respect to federal tax issues
and with respect to the various state tax consequences of an investment in the Exempt Bonds.
Audits: The Internal Revenue Service (the "Service") has an ongoing program of auditing tax-exempt obligations to
determine whether, in the view of the Service, interest on such tax-exempt obligations is includable in the gross income of
the owners thereof for federal income tax purposes. It cannot be predicted whether or not the Service will commence an
audit of the Exempt Bonds. If an audit is commenced,under current procedures the Service may treat the City as a taxpayer
and the bondholders may have no right to participate in such procedure. The commencement of an audit could adversely
affect the market value and liquidity of the Exempt Bonds until the audit is concluded, regardless of the ultimate outcome.
Withholdin�s: Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations,
including the Exempt Bonds, are in certain cases required to be reported to the Service. Additionally, backup withholding
may apply to any such payments to any Exempt Bond owner who fails to provide an accurate Form W-9 Request for
Taxpayer ldentification Number and Certification, or a substantially identical form, or to any bond owner who is notified
by the Service of a failure to report any interest or dividends required to be shown on federal income tax returns. The
reporting and backup withholding requirements do not affect the excludability of such interest from gross income for federal
tax purposes.
Legislation: Current and future legislative proposals, including some that carry retroactive effective dates, if enacted into
law,court decisions,or clarification of the Code may cause interest on the Exempt Bonds to be subject,directly or indirectly,
to federal income taxation, or otherwise prevent owners of the Exempt Bonds from realizing the full current benefit of the
tax status of such interest.For example, on December 22, 2017,the Tax Cuts and Jobs Act("TCJA") was signed into law.
For tax years beginning after December 31,2017,the TCJA, among other things,significantly changes the income tax rates
on individuals and corporations, modifies the current provisions relative to the federal alternative minimum tax on
individuals,and eliminates the federal alternative minimum tax for corporations.The TCJA,or the introduction or enactment
of any other legislative proposals, clarification of the Code or court decisions may also affect, perhaps significantly, the
market price for, or marketability of,the Exempt Bonds. Prospective purchasers of the Exempt Bonds should consult their
own tax advisors regarding the TCJA, as well as any pending or proposed tax legislation, as to which Bond Counsel
expresses no opinion other than as set forth in its legal opinion.
Opinion: Bond Counsel's opinion is not a guarantee of a result, or of the transaction on which the opinion is rendered, or of
the future performance of parties to the transaction, but represents its legal judgment based upon its review of existing
statutes, regulations, published rulings and court decisions and the representations and covenants of the City described in
this section.No ruling has been sought from the Service with respect to the matters addressed in the opinion of Bond Counsel
and Bond Counsel's opinion is not binding on the Service. Bond Counsel assumes no obligation to update its opinion after
the issue date to reflect any further action, fact or circumstance, or change in law or interpretation, or otherwise.
Federal Tax Matters with Respect to the Series 2021B Bonds(the"Taxable Bonds"):
In the opinion of Bond Counsel,under existing law,interest on the Taxable Bonds will be included in gross income of the
owners thereof for federal income tax purposes.
Tax Accounting Treatment of Discount and Premium on Certain Taxable Bonds: The initial public offering price of certain
Taxable Bonds ("Discount Bonds")may be less than the amount payable on such Discount Bonds at maturity. An amount
equal to the difference between the initial public offering price of the Discount Bonds (assuming that a substantial amount
of the Discount Bonds of that maturity are sold to the public at such price) and the amount payable at maturity constitutes
original issue discount to the initial purchaser of such Discount Bonds. Owners of Discount Bonds should consult with their
own tax advisors with respect to the determination of accrued original issue discount on Discount Bonds for federal income
tax purposes and with respect to the state and local tax consequences of owning and disposing of Discount Bonds. It is
possible that, under applicable provisions governing determination of state and local income taxes, accrued interest on
Discount Bonds may be deemed to be received in the year of accrual even though there will not be a corresponding cash
payment.
15
The initial public offering price of certain Taxable Bonds ("Premium Bonds") may be greater than the amount of such
Premium Bonds at maturity.An amount equal to the difference between the initial public offering price of Premium Bonds
(assuming that a substantial amount of the Premium Bonds of that maturity are sold to the public at such price) and the
amount payable at maturity constitutes a premium to the initial purchaser of such Premium Bonds. Purchasers of the
Premium Bonds should consult with their own tax advisors with respect to the determination of amortizable bond premium
on Premium Bonds for federal income tax purposes and with respect to the state and local tax consequences of owning and
disposing of Premium Bonds.
State of Iowa Tax Matters (Series 2021A and Series 2021B)
Interest on the Bonds is NOT exempt from present Iowa income taxes. Ownership of the Bonds and Bonds may result in
other state and local tax consequences to certain taxpayers. Bond Counsel expresses no opinion regarding any such collateral
consequences arising with respect to the Bonds. Prospective purchasers of the Bonds should consult their tax advisors
regarding the applicability of any such state and local taxes.
CHANGES IN FEDERAL AND STATE TAX LAW
From time to time, there are executive, regulatory and legislative proposals in the Congress and in the states that, if
enacted, could alter or amend the federal and state tax matters referred to herein or adversely affect the marketability or
market value of the Bonds or otherwise prevent holders of the Exempt Bonds from realizing the full benefit of the tax
exemption of interest on the Exempt Bonds. Further, such proposals may impact the marketability or market value of the
Bonds simply by being proposed.
It cannot be predicted whether or in what form any such proposals might be enacted or whether if enacted it would
apply to bonds issued prior to enactment. In addition, regulatory actions are from time to time announced or proposed
and litigation is threatened or commenced which, if implemented or concluded in a particular manner, could adversely
affect the market value, marketability or tax status of the Bonds. It cannot be predicted whether any such regulatory
action will be implemented, how any particular litigation or judicial action will be resolved, or whether the Bonds
would be impacted thereby. It is possible that further legislation will be proposed or introduced that could result in
changes in the way that tax exemption is calculated, or whether interest on certain securities are exempt from taxation at
all. Prospective purchasers should consult with their own tax advisors regarding any other pending or proposed federal
income tax legislation.
The opinions expressed by Bond Counsel are based upon existing legislation and regulations as interpreted by relevant
judicial and regulatory authorities as of the date of issuance and delivery of the Bonds, and Bond Counsel has
expressed no opinion as of any date subsequent thereto or with respect to any proposed or pending legislation,
regulatory initiatives or litigation.
ENFORCEMENT
Holders of the Bonds shall have and possess all the rights of action and remedies afforded by the common law, the
Constitution and statutes of the State of Iowa and of the United States of America for the enforcement of payment of the
Bonds, including, but not limited to, the right to a proceeding in law or in equity by suit, action or mandamus to enforce
and compel performance of the duties required by Iowa law and the resolutions authorizing issuance of the Bonds. There
is no bond trustee or similar person to monitor or enforce the terms of the resolutions authorizing issuance of the Bonds. In
the event of a default in the payment of principal of or interest on the Bonds, there is no provision for acceleration of
maturiry of the principal of the Bonds. Consequently,the remedies of the owners of the Bonds(consisting primarily of an
action in the nature of mandamus requiring the Issuer and certain other public officials to perform the terms of the
resolution for the Bonds)may have to be enforced from year to year.
The owners of the Bonds cannot foreclose on property within the boundaries of the Issuer or sell such property in order to
pay the debt service on the Bonds. In addition,the enforceability of the rights and remedies of owners of the Bonds may
be subject to limitation as set forth in Bond Counsel's opinion. The opinion will state, in part, that the obligations of the
16
Issuer with respect to the Bonds may be subject to bankruptcy, insolvency,reorganization, moratorium and other similar
laws affecting creditors' rights heretofore or hereafter enacted to the extent constitutionally applicable,and to the exercise
of judicial discretion in appropriate cases.
No representation is made, and no assurance is given, that the enforcement of any remedies with respect to such assets
will result in sufficient funds to pay all amounts due under the resolutions authorizing issuance of the Bonds, including
principal of and interest on the Bonds.
OPINION
Bond Counsel's opinion is not a guarantee of a result, or of the transaction on which the opinion is rendered, or of the
future performance of parties to the transaction,but represents its legal judgment based upon its review of existing statutes,
regulations, published rulings and court decisions and the representations and covenants of the Issuer described in this
section. Nor does the rendering of an opinion guarantee the outcome of any legal dispute that may arise out of the
transaction. No ruling has been sought from the Service with respect to the matters addressed in the opinion of Bond
Counsel and Bond Counsel's opinion is not binding on the Service. Bond Counsel assumes no obligation to update its
opinion after the issue date to reflect any further action, fact or circumstance, or change in law or interpretation, or
otherwise.
In addition,the enforceability of the rights and remedies of owners of the Bonds may be subject to limitation as set forth
in the Bond Counsel's opinion. The opinion will state,in part,that the obligation of the City with respect to the Bonds may
be subject to bankruptcy, insolvency, reorganization, moratorium and other similar laws affecting creditors' rights
heretofore or hereafter enacted to the extent constitutionally applicable, and to the exercise of judicial discretion in
appropriate cases.
ALL POTENTIAL PURCHASERS OF THE BONDS SHOULD CONSULT WITH THEIR TAX ADVISORS
WITH RESPECT TO FEDERAL, STATE AND LOCAL TAX CONSEQUENCES OF OWNERSHIP OF THE
BONDS (INCLUDING BUT NOT LIMITED TO THOSE LISTED ABOVE).
MUNICIPAL ADVI,�OR
The Issuer has retained Independent Public Advisors, LLC as Municipal Advisor(the "Municipal Advisor") in connection
with the preparation of the issuance of the Bonds. The Municipal Advisor assisted in the preparation of Appendix A hereto
and in other matters relating to the planning, structuring and issuance of the Bonds. In assisting with the preparation of the
Appendix A, the Municipal Advisor has relied on government officials, and other sources to provide accurate information
for disclosure purposes. The Municipal Advisor is not obligated to undertake, and has not undertaken, an independent
verification of the accuracy,completeness,or fairness of the information contained in the Official Statement.The Municipal
Advisor is an independent advisory firm and is not engaged in the business of underwriting,trading or distributing municipal
securities or other public securities.
CONTINUING DISCLOSURE
In order to assist bidders in complying with paragraph(b)(5)of the Rule,the City will undertake,pursuant to the resolution
for the Bonds and the Continuing Disclosure Certificate for the Bonds,to provide certain annual financial information and
notices of the occurrence of certain material events. A description of these undertakings is set forth in APPENDIX D of
this Official Statement. The City will deliver the Continuing Disclosure Certificate at closing, and any failure on the part
of the City to deliver the same shall relieve the Purchaser of its obligation to purchase the Bonds.
Within the last five years, the City did not timely file audited financial statements (or operating data due to the fact that all
operating data is contained within the audited financial statements) for the fiscal year ending June 30, 2018 due to an
inadvertent uploading error, and did not properly link its audited financial statements or operating data for fiscal years
ending June 30, 2016 and June 30, 2017 to bonds issued in 2016 or 2017. The Issuer filed a notice of failure to file in both
instances (but did not file such notices timely) and did not file unaudited financial statements since the audited financial
statements were filed. The Issuer did not timely file certain operating data tables for various issues for fiscal years ending
June 30, 2013 and 2014, did not link certain bonds issued in 2009 to a 2014 rating change which was filed for other issues,
17
and did not timely file notice of its failure to provide the aforementioned information on or before the date specified in its
prior continuing disclosure undertakings.
SALE AT COMPETITIVE BIDDING
The Series 2021A Bonds were offered for sale by the City at a public, competitive sale on May 3, 2021. The best bid
submitted at the sale was submitted by (the"Series 2021 A Underwriter"). The City awarded the contract for sale
of the Series 2021A Bonds to the Series 2021A Underwriter at a price of$ (reflecting the par amount of
$ ,plus a reoffering premium of$ , and less an Underwriter's discount of$ ).
The Series 2021 B Bonds were offered for sale by the City at a public,competitive sale on May 3,2021.The best bid submitted
at the sale was submitted by (the"Series 2021B Underwriter"). The City awarded the contract for sale of the Series
2021B Bonds to the Series 2021B Underwriter at a price of$ (reflecting the par amount of$ , plus a
reoffering premium of$ , and less an Underwriter's discount of$ ).
AUDITED FINANCIAL STATEMENTS
Audited financial statements of the Issuer are included in the Comprehensive Annual Financial Report in "APPENDIX
D" to this Official Statement and have been prepared by Eide Bailly LLP to the extent and for the periods indicated in
their report thereon. Such financial statements have been included herein without permission of said office,and said office
expresses no opinion with respect to the Bonds or the Official Statement. The inclusion of the certain financial information
and the 2020 Audit in this Official Statement in and of itself is not intended to demonstrate the fiscal condition of the
City since the date of the 2020 Audit. Questions or inquiries relating to financial information of the City since the date of
the 2020 Audit should be directed to the City.
CERTIFICATION
The City has authorized the distribution of this Official Statement for use in connection with the initial sale of the Bonds.
I have reviewed the information contained within the O fficial Statement prepared on behalf of the City of Dubuque,
Iowa, and said Official Statement does not contain any material misstatements of fact nor omission of any material fact
regarding the issuance of$29,395,000* General Obligation Bonds, Series 2021A or $12,945,000* Taxable General
Obligation Bonds, Series 2021B.
CITY OF DUBUQUE,IOWA
/s/Jenny Larson,Director of Finance&Budget
*Preliminary; subject to change.
18
APPENDIX A: INFORMATION ABOUT THE ISSUER
APPENDIX A-INFORMATION ABOUT THE ISSUER
CITY OF DUBUQUE,IOWA
CITY HALL
50 W. 13r" Street
Dubuque, IA 52001
Telephone 563-589-4100
MAYOR AND CITY COUNCIL
Roy D.Buol,Mayor................................................................. Term Expires 2021
Ric W.Jones,At Large............................................................ Term Expires 2021
David T.Resnick,At Large..................................................... Term Expires 2023
Susan R,Farber, Ward 1 ........................................................ Term Expires 2021
Laura J. Roussell, Ward 2....................................................... Term Expires 2023
Danny C. Sprank Ward 3........................................................ Term Expires 2021
Brad M. Cavanagh Ward 4..................................................... Term Expires 2023
ADMINISTRATION
Michael C.Van Milligen............................................................... City Manager
Cori Burbach...................................................................Assistant City Manager
Jenny Larson........................................................ Director of Finance&Budget
Adrienne Breitfelder............................................................................ City Clerk
FINANCE TEAM
Crenna Brumwell,Dubuque,Iowa............................................... City Attorney
Ahlers & Cooney,P.C.,Des Moines,Iowa..................................Bond Counsel
Ahlers & Cooney,P.C.,Des Moines,Iowa.........................Disclosure Counsel
Independent Public Advisors,LLC Johnston,Iowa............Municipal Advisor
A-1
PROPERTY VALUES
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs all County
Auditors to apply prescribed statutory percentages to the assessments of certain categories of real properry. The
assessments finalized as of January 1 of each year are applied to the following fiscal year.
The 2019 final Actual Values were adjusted by the Dubuque County Auditor. The reduced values, detertnined after the
application of rollback percentages,are the Taxable Values subject to tax levy. The reduced values, determined after the
application of rollback percentages, are the Taxable Values subject to tax levy. For assessment year 2019, the Taxable
Value rollback rate was 55.0743% of Actual Value for residential property; 71.2500% of Actual Value for multi-
residential property; 81.4832% of Actual Value for agricultural property; 90% of Actual Value for commercial,
industrial, and railroad property, and 100%of Actual Value for utility property.
The Legislature's intent has been to limit the growth of statewide taxable valuations for most classes of property to 3%
annually; utility taxable valuation growth is limited to 8%. Political subdivisions whose taxable values are thus reduced
or are unusually low in growth are allowed to appeal the valuations to the State Appeal Board, in order to continue to
fund present services.
VALUATIONS
1/1/2019 VALUATIONS' 1/1/2020 VALUATIONS�
100°/o Taxable Value 100% Taxable Value
Actual Value (With Rollback� Actual Value (With Rollback�
Residential $2,834,434,583 $1,528,669,756 $2,883,700,162 $1,603,445,974
Commercial 869,308,781 756,680,282 877,949,735 763,464,209
Industrial 92,554,535 80,275,717 90,060,981 77,675,463
Multi-residential 195,968,604 134,234,212 199,518,934 128,814,495
Railroad 3,871,069 3,483,962 4,022,947 3,620,652
Utilities w/o Gas &Electric 5,710,370 5,710,370 4,ll7,584 4,057,834
Other 514,605 463,144 0 0
Gross valuation $4,002,362,547 $2,509,517,443 $4,059,370,343 $2,581,078,627
Less military exemption (4,307,752� (4,307,752� (4,ll5,144� (4,ll5,144�
Net valuation $3,998,054,795 $2,505,209,691 $4,055,255,199 $2,576,963,483
TIF increment(used to compute debt
service levies and constitutional debt
limit) $408,834,145 $405,604,502 $404,061,757 $400,278,958
Taxed separately
Ag. Land& Buildings $3,956,4813 3,223,560 $3,947,8713 3,317,146
Utilities—Gas &Electric 375,ll9,536 $74,145,820 369,056,843 $69,267,366
Source:Iowa Department of Management
'For taxes payable July 1, 2020 through June 30, 2021.
�For taxes payable July 1, 2021 through June 30, 2022.
3 Excludes$31,249 of TIF land.
A-2
GROSS TAXABLE VALUATION BY CLASS OF PROPERTY4
1/1/2019 Assessment Year 1/1/2020 Assessment Year
Taxable Percent Taxable Percent
Valuation Total Valuation Total
Residential $1,528,669,756 59.167% $1,603,445,974 60.499%
Multiresidential 134,234,212 5.195% 128,814,495 4.860%
Commercial, Industrial, Other, Railroad&Utility 846,613,475 32.765% 848,818,158 32.027%
Utilities—Gas&Electric 74,145,820 2.870% 69,267,366 2.614%
Total Gross Taxable Valuation $2,583,663,263 100.00% 2,650,345,993 100.00%
Source:Iowa Department of Management
TREND OF VALUATIONS
The 100% Actual Valuations, before rollback and after reduction of military exemption, include Ag. Land, Ag.
Buildings, TIF Increment, and Gas & Electric Utilities. The Net Taxable Valuations, with the rollback and after the
reduction of military exemption,include Gas&Electric Utilities,but exclude Ag. Land,Ag Buildings, and Taxable TIF
Increment. Iowa cities certify operating levies against Net Taxable Valuation excluding the Taxable TIF Increment and
debt service levies are certified against Net Taxable Valuations including the Taxable TIF Increment.
Net
Taxable
Assessment Payable ]00% Valuation Taxable
Year Fiscal Year Actual Valuation (With Rollback� TIF Increment
2016 2017-18 $4,187,371,261 $2,371,609,335 $388,130,735
2017 2018-19 4,430,255,ll0 2,499,017,299 334,881,153
2018 2019-20 4,553,229,486 2,542,043,245 353,396,716
2019 2020-21 4,785,964,957 2,579,355,Sll 405,604,502
2020 2021-22 4,832,321,670 2,646,230,849 400,278,950
Source:Iowa Department of Management
4 Before military exemption, and exclusive of ta�able TIF increment.
A-3
LARGER TAXPAYERS
Property/ 1/1/2020
Taxpaver Business Type Taxable Valuation
Peninsula Gaming Company LLC Commercial $275,798,346
Interstate Power&Light CO Utility 63,778,569
Kennedy Mall Inc Commercial 60,378,171
Progressive Processing LLC Industrial 38,960,029
GRTD Investments LLC Commercial 25,380,320
Mar Holdings LLC Commercial 25,165,912
Walter Development LLC Commercial 25,122,533
Black Hills Energy Corp Utility 21,343,408
Nordstrom Real Estate Holdings,INC Commercial 14,800,000
City of Dubuque Commercial 14,792,460
Source: Dubuque County Iowa Auditar's Office.
Effort has been made to seek out and report the larger taxpayers.However,many of the taxpayers listed contain multiple parcels and it is possible that some parcels
and their valuations have been overlooked.
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
A-4
INDEBTEDNESS
DEBT LIMIT
Article XI, Section 3 of the State of Iowa Constitution limits the amount of debt outstanding at any time of any county,
municipality or other political subdivision to no more than 5% of the actual value of all taxable property within the
corporate limits, as taken from the last state and county tax list. The debt limit for the City, based on its 2019 Actual
Valuation applicable to the fiscal year 2020-21,as well as the computation based on its 2020 Actual Valuation(effective
July l, 2021) is as follows:
1/1/2019 Assessment Year 1/1/2020 Assessment Year
Actual Valuation of Property $4,790,303,958 $4,836,468,063
Less:Military Exemption (4,307,752� (4,115,144�
Net Valuation $4,785,996,206 $4,832,352,919
Constitutional Debt Percentage 5.00% 5.00°/o
Constitutional Debt Limit $239,299,810 $241,617,646
Less: Applicable General Obligation Debt (89,330,000) (89,330,000)
Less: Urban Renewal Debt (19,031,195) (19,031,195)
Less: Rebate Agreements (6,107,583) (6,107,583)
Less: Other Obligations (6,051,627) (6,051,627)
Less: Annual Appropriations (1,474,469� (1,474,469�
Constitutional Debt Margin $117,304,936 $119,622,772
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
s Amount appropriated for the$22,138,000 General Obligation Annual Appropriation Refunding Capital Loan Notes, Series 2021
to be abated by sales ta�increment.
A-5
DIRECT DEBT
First Lien General Obligation Debt(Includes the Bonds,Excludes the Refunded Bonds)
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturitv As of 04/O1/21
03/12A $4,380,000 Urban Renewal 06/316 $225,000
03/12B 7,495,000 Corporate Purpose 06/316 385,000
06/12C 6,965,000 Taxable Urban Renewal 06/21' 345,000
12/12E 3,640,000 Corporate Purpose 06/21� 225,000
12/12F 1,035,000 Taxable Urban Renewal 06/21' 135,000
12/12H 2,385,000 Urban Renewal 06/216 110,000
12/12I 7,285,000 Taxable Refunding 06/21 50,000
12/14B 18,835,000 Corporate Purpose 06/346 1,025,000
12/14C 7,615,000 Taxable Corporate Purpose 160,000
06/21Erro
r!
Bookmar
k not
de�ned.
04/16A 2,830,000 Corporate Purpose 06/35 2,310,000
04/16B 11,505,000 Refunding 06/28 5,025,000
04/16C 4,145,000 CorporatePurpose 06/35 3,420,000
04/17A 8,495,000 Refunding 06/30 4,925,000
04/17B 9745,000 Urban Renewal Refunding 06/30 7,730,000
04/17C 2,120,000 Taxable Urban Renewal Refunding 06/30 1,745,000
04/18A 4,950,000 Corporate Purpose& Refunding 06/31 4,300,000
04/18B 1,005,000 Taxable Refunding 06/26 785,000
06/19A 2,295,000 Corporate Purpose 06/39 2,240,000
06/19B 860,000 Taxable Corporate Purpose 06/27 755,000
07/19C 4,435,000 Refunding 06/32 3,905,000
06/21A 29,395,000 Corporate Purpose& Refunding 06/41 29,395,000
06/21B 12,945,000 Taxable Corporate Purpose& Refunding 06/36 12,945,000
Total $82,140,000
Second Lien Sales Tax Increment General Obligation Debt
Principal
Date Original Final Outstanding
of Issue Amount Pu ose Maturitv As of 04/Ol/21
06/14 $7,190,000 Flood Mitigation 06/29 $7,190,000
Total General Obligation Debt Subject to Debt Limit: $89,330,000
6 Maturities 2022 and later are being refunded by the Series 2021A Bonds.
'Maturities 2022 and later are being refunded by the Series 2021B Bonds
A-6
A-7
ANNUAL FISCAL YEAR DEBT SERVICE PAYMENTS
First Lien General Obligation Debt(Includes the Bonds, Excludes the Refunded Bonds)
Current Outstanding Total
G.O.Debt The Series 2021A Bonds The Series 2021B Bonds G.O.Debt
Fiscal Principal Principal Principal Principal
Year Principal and Interest Principal and Interest Principal and Interest Principal and Interest
FY 2020-21 $7,495,000 $8,658,778 $7,495,000 $8,658,778
FY 2021-22 3,515,000 4,471,559 $2,270,000 $2,707,601 $1,000,000 $1,278,096 6,785,000 8,457,256
FY 2022-23 3,590,000 4,447,859 2,330,000 2,753,157 860,000 1,130,571 6,780,000 8,331,587
FY 2023-24 3,300,000 4,053,559 2,265,000 2,670,682 955,000 1,216,971 6,520,000 7,941,212
FY 2024-25 3,280,000 3,938,009 2,290,000 2,675,977 975,000 1,225,320 6,545,000 7,839,305
FY 2025-26 3,180,000 3,742,860 2,275,000 2,638,306 985,000 1,221,085 6,440,000 7,602,251
FY 2026-27 3,120,000 3,588,765 2,295,000 2,632,826 1,010,000 1,228,651 6,425,000 7,450,241
FY 2027-28 3,005,000 3,379,888 2,345,000 2,654,368 1,035,000 1,232,643 6,385,000 7,266,898
FY 2028-29 2,825,000 3,109,168 2,370,000 2,647,007 1,065,000 1,238,217 6,260,000 6,994,391
FY 2029-30 1,915,000 2,113,718 2,410,000 2,650,983 1,095,000 1,241,059 5,420,000 6,005,759
FY 2030-31 1,270,000 1,410,300 2,445,000 2,637,060 1,125,000 1,241,385 4,840,000 5,288,744
FY 2031-32 850,000 951,994 1,690,000 1,830,470 1,150,000 1,234,885 3,690,000 4,017,348
FY 2032-33 580,000 656,081 1,405,000 1,508,966 715,000 766,535 2,700,000 2,931,582
FY 2033-34 590,000 648,256 1,435,000 1,508,056 740,000 770,299 2,765,000 2,926,611
FY 2034-35 610,000 649,569 205,000 244,477 115,000 122,581 930,000 1,016,627
FY 2035-36 160,000 180,250 215,000 249,578 120,000 123,924 495,000 553,752
FY 2036-37 165,000 180,450 215,000 244,353 380,000 424,803
FY 2037-38 175,000 185,500 225,000 249,043 400,000 434,543
FY 2038-39 175,000 180,250 230,000 248,395 405,000 428,645
FY 2039-40 235,000 247,530 235,000 247,530
FY 2040-41 245,000 251,444 245,000 251,444
Total $39,800,000 $46,546,813 $29,395,000 $33,250,279 $12,945,000 $15,272,222 $82,140,000 $95,069,307
A-8
Second Lien General Obligation Debtg
Current Outstanding
G.O.Debt(OOOs)
Fiscal Principal and
Year Principal Interest
FY 2020-21 $31,309
FY 2021-22 57,193
FY 2022-23 $115,000 166,593
FY 2023-24 1,075,000 1,120,570
FY 2024-25 1,125,000 1,164,195
FY 2025-26 1,125,000 1,344,250
FY 2026-27 1,200,000 1,363,000
FY 2027-28 1,250,000 1,365,000
FY 2028-29 1,300,000 1,365,000
Total $7,190,000 $7,977,110
Urban Renewal Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturitv As of 04/O1/21
10/07 $23,025,000 Port of Dubuque Parking Ramp 06/37 $18,985,000
08/09 690,529 40 Main LLC 06/37 46,195
Total $19,031,195
Current Outstanding
Urban Renewal Revenue Debt(OOOs)
Fiscal Principal
Year Principal and Interest
FY 2020-21 $636,195 $1,348,883
FY 2021-22 635,000 2,014,625
FY 2022-23 680,000 2,012,000
FY 2023-24 730,000 2,011,000
FY 2024-25 785,000 2,011,250
FY 2025-26 845,000 2,012,375
FY 2026-27 910,000 2,014,000
FY 2027-28 975,000 2,010,750
FY 2028-29 1,050,000 2,012,625
FY 2029-30 1,130,000 2,013,875
FY 2030-31 1,215,000 2,014,125
FY 2031-32 1,305,000 2,013,000
FY 2032-33 1,400,000 2,010,125
FY 2033-34 1,505,000 2,010,125
FY 2034-35 1,620,000 2,012,250
FY 2035-36 1,740,000 2,010,750
FY 2036-37 1,870,000 2,010,250
Total $19,031,195 $33,542,008
8 Supported by state sales tax increment.
A-9
OTHER DEBT
The City has debt payable solely from the net water revenues of the Ciry's water system as follows:
Water Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturitv As of 04/O1/21
10/07 $915,000 Water Improvements (SRF) 06/28 $435,000
11/08D 1,195,000 WaterImprovements 06/23 315,000
02/10 7,676,000 Water Improvements (SRF) 06/31 1,991,000
09/lOD 5,700,000 Water Improvements 06/30 3,850,000
07/17 10,198,000 WaterImprovements (SRF) 06/37 4,908,761
8/19 4,400,000 Water Improvements (SRF) 06/40 2,844,187
Total $14,343,948
The City has debt payable solely from the net sewer revenues of the City's sewer system as follows:
Sewer Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Putpose Maturitv As of 04/O1/19
Ol/09 $1,847,000 Sewer& Storm Improvements 06/28 $876,000
O1/10 $912,000 Sewer Improvements(SRF) 06/30 529,000
08/10 74,285,000 Sewer Improvements(SRF) 06/29 57,961,000
04/13 3,048,000 Sewer Improvements(SRF) 06/33 2,116,000
OS/13 3,058,000 Sewer Improvements(SRF) 06/31 1,991,000
03/19 2,763,000 Sewer Improvements(SRF) 06/38 2,201,642
Total $65,674,642
The City has debt payable solely from the net sewer revenues of the City's stormwater system as follows:
Stormwater Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturitv As of 04/O1/19
O1/10 800,000 Stormwater Improvements (SRF) 06/30 $463,000
10/10 7,850,000 Stormwater Improvements (SRF) 06/41 6,4224,000
02/14 1,029,000 Stormwater Improvements (SRF) 06/33 233,000
04/19 16,382,000 Stormwater Improvements (SRF) 06/40 11,962,4819
Total $76,882,481
9 Amount drawn as of April 6, 2021.
A-10
INDIRECT DEBT
1/1/201910 Portion of City's
Taxable Taxable Value Percent Indirect
Taxine District Valuation In the City Applicable GO Portion
Dubuque CSD $4,231,658,049 $2,984,960,013 70.54°/a $0 $0
Dubuque County 5,579,818,084 $2,984,960,013 53.50°/a 29,278,133 15,662,528
Northeast Iowa Comm. College 13,262,361,781 $2,984,960,013 22,51�/o 46,710,000 10,513,021
TOTAL $26,175,549
DEBT RATIOS
Debt/201910 Actual
Market Value Debt/57,532
G.O. Debt $4,785,996,206 Population
Direct General Obligation Debt $121,994,874 2.55% $2,120.47
Indirect General Obligation Debt 26,175,549 0.55°/o 454.97
Combined Debt $148,170,423 3.10°/a $2,575.44
LEVIES AND COLLECTIONS
Taxes Current °/o of
Year Levied Collections Taxes Levied
2015-16 24,944 24,854 99.75%
2016-17 26,384 26,260 99.52%
2017-18 25,871 25,846 99.90%
2018-19 26,501 26,466 99.86%
2019-20 26,305 25,907 98.49%
2020-21 26,212 ----In process of collection----
After the assessment of property in a calendar year, taxes are levied for collection in the following fiscal year. Taxes are
certified to the County Auditor in March. The County Treasurer collects taxes for all taxing entities in the County. Statutory
dates for payment without penalty are September 30 for the first installment and March 31 for the second installment.
Penalty rates are established by State law at 1°/o per month.
'o For taxes payable July 1, 2019 through June 30, 2020
A-11
TAX RATES
Taxing FY2016/17 FY2017/18 FY2018/19 FY2019/20 FY2020/21
District $/$1,000 $/$1,000 $/$1,000 $/$1,000 $/$1,000
City of Dubuque $1116739 $10.89220 $10.58844 $10.33144 $10.14400
Dubuque County 6.29673 6.34143 5.97760 5.94098 5.91098
Dubuque CSD 14.97697 14.95665 14.59791 14.71233 14.66255
County Hospital 0.26975 0.26949 0.27000 0.27000 0.27000
City Assessor 0.25816 0.25234 0.27535 0.27080 0.24949
Ag. Extension 0.10025 0.10287 0.10379 0.10551 0.10600
Northeast Iowa CC 0.93757 1.09993 1.09993 1.03168 0.94734
State of Iowa 0.00330 0.00310 0.00290 0.00280 0.00270
Consolidated Rate $34.01012 $33.91801 $32.91592 $32.66554 $32.29306
LEVY LIMITS
A city's general fund tax levy is limited to $8.10 per $1,000 of taxable value, with provision for an additional $0.27 per
$1,000 levy for an emergency fund which can be used for general fund purposes (Code of Iowa, Chapter 384, Division I).
Cities may exceed the $8.10 limitation upon authorization by a special levy election. Further, there are limited special
purpose levies, which may be certified outside of the above-described levy limits (Code of Iowa, Section 384.12). The
amount of the City's general fund levy subject to the$8101imitation is $810 for FY 2018-19, and the City is not using the
emergency levy. The City also levies for employee benefits. Debt service levies are not limited.
FUNDS ON HAND(Cash and Investments as of February 28,2021)
Agency $2,164,003
Capital 24,629,530
Component Unit 12,932,220
Debt Service" ($2,020,702)
Enterprise 31,205,235
General 18,110,914
Internal Service 7,06L505
Permanent 97,940
Special 25,625,817
Total Cash and Investments $119,806,462
'�Deficit to be eliminated with transfers.
A-12
THE CITY
CITY GOVERNMENT
The City has been governed by a Council-Manager-Ward form of government since 1920. Policy is established by a
Mayor and six council members, the mayor and two of the council members being elected at large and four members
elected from wards. City Council members hold four-year staggered terms. The City Clerk, City Manager and City
Attorney are appointed by the City Council.
LEASE REVENUE
The City of Dubuque leases riverfront property, airport property (hangars and terminal space), farmland,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, 2020 is
$5,872,087,with$142,423 of depreciation expense during the year ended June 30,2020. The DRA lease amount is based
on the association's gross gambling receipts. During the year ended June 30, 2020, the DRA lease generated$3,961,996
in lease revenue. Lease payments from DRA are expected to decrease in future years, due to declining gaming revenues
at the leased facility. See the audited financial statements attached as Appendix C for further information.
EMPLOYEES,PENSIONS AND OPEB
The City has 590 full and 73.64 full time equivalent part-time employees and 55.80 full time equivalent seasonal
employees, including a police force of 112 sworn personnel and a fire department of 91 fire fighters. Of the City's 809
employees, 572 are currently enrolled in the Iowa Public Employees Retirement System (the "IPERS") pension plan
administered by the State of Iowa and 190 are currently enrolled in the Municipal Fire and Police Retirement System of
Iowa(the"MFPRSI"), a benefit plan administered by a Board of Trustees.
See note 10 of the audited financial statements attached as Appendix C for further information on OPEB obligations, and
note ll for further information on pensions.
UNION CONTRACTS
City employees are represented by the following bargaining units:
Contract Expiration
Bargainin�Unit Unit Members Date
Teamsters Local Union No 120'� 111 June 30, 2022
Teamsters Local Union No 120 Bus Operatorsl2 50 June 30, 2022
Dubuque Professional Firefighters Association 76 June 30, 2023
Dubuque Police Protective Association 79 June 30, 2024
International Union of Operating Engineers No. 23412 59 June 30, 2024
'�This is a 5-year agreement with a 2%increase in wages for Fiscal Year 2018;a 1.5%increase in wages for Fiscal Years 2019, 2020
and 2021; and a 1.75%increase in wages for Fiscal Year 2022.
A-13
GENERAL INFORMATION
LOCATION AND TRANSPORTATION
The City is located in northeast Iowa and serves as the county seat for Dubuque County. The City, with a 2010 Census
population of 57,532,has a land area of 31.758 square miles.Annexation activity in recent years has been voluntary with
over 227 acres annexed in the past five years. The City lies at the intersection of Highways 61/151 and 20. The City is
located approximately 22 miles southwest of Platteville,Wisconsin; 92 miles southwest of Madison,Wisconsin; 84 miles
northeast of Iowa City, Iowa; 65 miles north of the Quad Cities (Rock Island and Moline, Illinois and Bettendorf and
Davenport,Iowa); 175 miles west of Chicago,Illinois and 185 miles northeast of Des Moines. Dubuque Regional Airport
provides jet service to Chicago via American Airlines. Railroad service to the City is provided by the Iowa, Chicago &
Eastern Railroad Corp,Canadian National/Illinois Central,and Burlington Northern Santa Fe Railroad Company(BNSF),
as well as bus service being provided by Greyhound and Burlington Trailways.
BUILDING PERMITS13
City officials report the following construction activity as of February 28, 2021. Permits for the City are reported on a
fiscal year basis.
Fiscal Year Si� Multi-Family Commercial Total Permits Total Valuation
2016-17 64 3 18 1,472 115,177,160
2017-18 72 0 14 1,402 143,139,314
2018-19 44 0 ll 966 118,275,292
2019-20 55 2 10 1,280 101,491,738
2020-21 24 2 9 779 45,180,406
US CENSUS DATA
1980 US Census 62,374
1990 US Census 57,546
2000 US Census 57,686
2010 US Census 57,532
Source:U.S.Census Bureau website.
13 Totals include new construction totals only for single family, multi family, commercial/industrial, roofing, siding, decks, and other
miscellaneous residential and commercial permits.
A-14
UNEMPLOYMENT RATES
Calendar
Year City of Dubuque State
Avera�e Dubuque14 County14 of Iowa'—s
2016 3.5°/a 3.6% 3.7°/a
2017 3.1°/a 3.0% 3.1°/a
2018 2.4°/a 2.4% 2.5°/a
2019 2.7°/a 2.7% 2.8°/a
2020 6.6°/a 5.9% 5.3°/a
Source: Iowa Workforce Development Center.Figwes represent calendar year averages,and will differ from fiscal year-end data reported in Table
18 of the Comprehensive Annual Financial Report for the year ended June 30,2020.
EDUCATION
Public education to the City is provided by the Dubuque Community School District, with certified enrollment for the
2020-2021 school year of 10,310. The Dubuque School District has two high schools, an alternative high school, three
middle schools and thirteen elementary schools. The Archdiocese of Dubuque operates four Catholic elementary facilities,
one middle school and one high school within the City. Higher education opportunities within the County include Loras
College, Clarke University, University of Dubuque, and Northeast Iowa Community College, with local facilities in
downtown Dubuque and Peosta(15 minutes west of Dubuque on Highway 20).
FINANCIAL STATEMENTS
The City's COMPREHENSIVE ANNUAL FINANCIAL REPORT for the fiscal year ended June 30, 2020 is
reproduced in Appendix C. The City's certified public accountant has not consented to the distribution of the audited
financial statements and has not undertaken added review of their presentation. Copies of the City's prior
Comprehensive Annual Financial Report may be obtained from the City's Municipal Advisor, Independent Public
Advisors, LLC.
14 Not seasonally adjusted.
's Seasonally adjusted.
A-15
APPENDIX B: FORM OF LEGAL OPINIONS
Ahlers&Cooney, P.C.
A H L E R 5 C O O N E Y Attorneys at Law
100 Court Avenue, Suite 600
A T T ❑ R N E Y 5 Des Moines, lowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
DRAFT
We hereby certify that we have examined a certified transcript of the proceedings of the
City Council and acts of administrative officers of the City of Dubuque, State of Iowa(the
"Issuer"), relating to the issuance of General Obligation Bonds, Series 2021A,by said City, dated
, in the denomination of$5,000 or multiples thereof, in the aggregate amount of
$ (the "Bonds").
We have examined the law and such certified proceedings and other papers as we deem
necessary to render this opinion as bond counsel.
As to questions of fact material to our opinion, we have relied upon representations of the
Issuer contained in the resolution authorizing issuance of the Bonds (the "Resolution") and in the
certified proceedings and other certifications of public officials furnished to us, without
undertaking to verify the same by independent investigation.
Based on our eXamination and in reliance upon the certified proceedings and other
certifications described above, we are of the opinion, under existing law, as follows:
1. The Issuer is duly created and validly existing as a body corporate and politic and
political subdivision of the State of Iowa with the corporate power to adopt and perform the
Resolution and issue the Bonds.
2. The Bonds are valid and binding general obligations of the Issuer.
3. All taxable property in the territory of the Issuer is subject to ad valorem taxation
without limitation as to rate or amount to pay the Bonds. Taxes have been levied by the
Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual
tax levy the principal and interest coming due on the Bonds to the extent the necessary funds are
not provided from other sources.
4. Interest on the Bonds is eXcludable from gross income for federal income taX
purposes and is not an item of tax preference for purposes of the federal alternative minimum
taX. The opinion set forth in the preceding sentence is subject to the condition that the Issuer
comply with all requirements of the Internal Revenue Code of 1986, as amended, that must be
satisfied subsequent to the issuance of the Bonds in order that the interest thereon be, and
continue to be, excludable from gross income for federal income tax purposes. The Issuer has
covenanted to comply with all such requirements. Failure to comply with certain of such
requirements may cause interest on the Bonds to be included in gross income for federal income
taX purposes retroactively to the date of issuance of the Bonds.
We express no opinion regarding the accuracy, adequacy, or completeness of the Official
Statement or other offering material relating to the Bonds. Further, we eXpress no opinion
Wishard&Baily—1888,Guernsey&Baily—1893,Baily&Stipp—1901,Stipp,Perry,Bannister&Starzinger—1914,Bannister,Carpenter,
Ahlers&Cooney—1950,Ahlers,Cooney,Dorweiler,Allbee,Haynie&Smith—1974,Ahlers,Cooney,Dorweiler,Haynie,Smith&Allbee,P.C.—1990
DRAFT
City of Dubuque, State of Iowa
$ General Obligation Bonds, Series 2021A
Page 2
regarding tax consequences arising with respect to the Bonds other than as expressly set forth
herein.
The rights of the owners of the Bonds and the enforceability of the Bonds are limited by
bankruptcy, insolvency,reorganization, moratorium, and other similar laws affecting creditors'
rights generally, and by equitable principles, whether considered at law or in equity.
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
Respectfully submitted,
01867482-1\10422-209
Ahlers&Cooney, P.C.
A H L E R 5 C O O N E Y Attorneys at Law
100 Court Avenue, Suite 600
A T T ❑ R N E Y 5 Des Moines, lowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
DRAFT
We hereby certify that we have examined a certified transcript of the proceedings of the
City Council and acts of administrative officers of the City of Dubuque, State of Iowa(the
"Issuer"), relating to the issuance of Taxable General Obligation Bonds, Series 2021B,by said
City, dated , in the denomination of$5,000 or multiples thereof, in the
aggregate amount of$ (the "Bonds").
We have examined the law and such certified proceedings and other papers as we deem
necessary to render this opinion as bond counsel.
As to questions of fact material to our opinion, we have relied upon representations of the
Issuer contained in the resolution authorizing issuance of the Bonds (the "Resolution") and in the
certified proceedings and other certifications of public officials furnished to us, without
undertaking to verify the same by independent investigation.
Based on our eXamination and in reliance upon the certified proceedings and other
certifications described above, we are of the opinion, under existing law, as follows:
1. The Issuer is duly created and validly existing as a body corporate and politic and
political subdivision of the State of Iowa with the corporate power to adopt and perform the
Resolution and issue the Bonds.
2. The Bonds are valid and binding general obligations of the Issuer.
3. All taxable property in the territory of the Issuer is subject to ad valorem taxation
without limitation as to rate or amount to pay the Bonds. Taxes have been levied by the
Resolution for the payment of the Bonds and the Issuer is required by law to include in its annual
tax levy the principal and interest coming due on the Bonds to the extent the necessary funds are
not provided from other sources.
4. The interest on the Bonds is not excluded from gross income for federal income
tax purposes under Section 103(a) of the Internal Revenue Code of 1986, as amended. THE
HOLDERS OF THE BONDS SHOULD TREAT THE 1NTEREST THEREON AS SUBJECT
TO FEDERAL INCOME TAXATION. We express no other opinion regarding any other
federal or state income tax consequences caused by the receipt or accrual of interest on the
Bonds.
We express no opinion regarding the accuracy, adequacy, or completeness of the Official
Statement or other offering material relating to the Bonds. Further, we express no opinion
regarding tax consequences arising with respect to the Bonds other than as expressly set forth
herein.
Wishard&Baily—1888,Guernsey&Baily—1893,Baily&Stipp—1901,Stipp,Perry,Bannister&Starzinger—1914,Bannister,Carpenter,
Ahlers&Cooney—1950,Ahlers,Cooney,Dorweiler,Allbee,Haynie&Smith—1974,Ahlers,Cooney,Dorweiler,Haynie,Smith&Allbee,P.C.—1990
DRAFT
City of Dubuque, State of Iowa
$ Taxable General Obligation Bonds, Series 2021B
Page 2
The rights of the owners of the Bonds and the enforceability of the Bonds are limited by
bankruptcy, insolvency, reorganization, moratorium, and other similar laws affecting creditors'
rights generally, and by equitable principles, whether considered at law or in equity.
This opinion is given as of the date hereof, and we assume no obligation to revise or
supplement this opinion to reflect any facts or circumstances that may hereafter come to our
attention, or any changes in law that may hereafter occur.
Respectfully submitted,
01867486-1\10422-214
APPENDIX C: JUNE 30, 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT
,
COMPREHENSIVE ANNUAL
FI NANCIAL REPORT
DUBUQUE, IOWA
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�- � ___� FISCAL YEAR ENDED JUNE 30, 2020
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Comprehensive Annual Financial Report
For The Fiscal Year Ended June 30, 2020
City of Dubuque, Iowa
Prepared by:
Department of Finance
THIS PAGE IS INTENTIONALLY LEFT BLANK
Introductory Section
June 30, 2020
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE,IOWA
TABLE OF CONTENTS
Exhibit P�e
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-11
City Organizational Chart 13
Officials 14
Certificate of Achievement far 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-ll3
Required Supplementary Information
Schedule of Receipts,Expenditures,and Changes in Balances—Budget
and Actual(Budgetary Basis)—Governmental Funds and Enterprise Funds ll 6
Note to Required Supplementary Information—Budgetary Reporting 117
Schedule of the City's Proportionate Share of Net Pension Liabiliry— Iowa
Employees'Retirement System 118
Schedule of City's Contribution—Iowa Employees'Retirement System 119
Notes to Required Supplementary Information— Net Pension Liabiliry IPERS 120
Schedule of the City's Proportionate Share of Net Pension Liabiliry— Municipal
Fire and Police Retirement System of Iowa 121
Schedule of City's Contributions—Municipal Fire and Police Retirement System
of Iowa 122
Notes to Required Supplementary Information— Net Pension Liability MFPRSI 123
Schedule of Changed in Total OPEB Liabiliry,Realted Ratios and Notes 124
Supplementary Information
Combining Fund Statements
Combining Balance Sheet—Nonmajor Governmental Funds A-1 128-130
Combining Statement of Revenues,Expenditures,and Changes in
Fund Balances—Nonmajar Governmental Funds A-2 132-134
Combining Statement of Net Position—Nonmajor Enterprise Funds B-1 136
Combining Statement of Revenues,Expenses, and Changes in Fund Net
Position—Nonmajor Enterprise Funds B-2 137
1
CITY OF DUBUQUE,IOWA
TABLE OF CONTENTS
FINANCIAL SECTION (continued) Exhibit Page
Combining Statement of Cash Flows—Nonmajor Enterprise Funds B-3 138-139
Combining Statement of Net Position—Internal Service Funds C-1 142-143
Combining Statement of Revenues,Expenses, and Changes in Fund Net
Position(Deficit)—Internal Service Funds G2 144-145
Combining Statement of Cash Flows—Internal Service Funds C-3 146-147
Combining Statement of Changes in Assets and Liabilities— Agency Funds D-1 150
STATISTICAL SECTION([Jnaudited) Table Page
Statistical Section Contents 153
Financial Trends
Net Position by Component 1 154-155
Changes in Net Posirion 2 156-159
Fund Balances of Governmental Funds 3 160-161
Changes in Fund Balances of Governmental Funds 4 162-163
Revenue Capacity
Taxable and Assessed Value of Property 5 164
Property Tax Rates—Direct and Overlapping Governments 6 165
Principal Property Taxpayers 7 166
Property Tax Levies and Collections 8 167
Debt Capaciry
Rarios of Outstanding Debt by Type 9 168-169
Ratios of General Bonded Debt Outstanding 10 170
Direct and Overlapping Governmental Activities Debt 11 171
Legal Debt Margin Information 12 172-173
Revenue Debt Coverage 13 174
Water and Sewer Receipt History 14 175
Water Meters by Rate Class 15 176
Largest Water and Sewer Customers 16 177
Sales Tax Increment Actual Receipts and Cumularive Sales Tax Balance Remaining 17 178
Demographic and Economic Information
Demographic and Economic Statistics 18 179
Principal Employers 19 181
Operating Information
Full-Time Equivalent City Government Employees by
Function/Department 20 182-183
Operating Indicators by Funcrion/Program 21 184-185
Capital Asset Statistics by Function 22 186-187
Retail 23 188
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 191-192
Independent Auditor's Report on Compliance with Requirements for Each Major
Program and on Internal Control Over Compliance Required by The Uniform Guidance 193-194
Schedule of Expenditures of Federal Awards 195-197
Notes to the Schedule of Expenditures of Federal Awards 198
Schedule of Findings and Questioned Costs 199-202
2
Finance Department
Dubuque 50 West 13th Street
THE CITY OF � Dubuque,Iowa 52001-4805
All•AmericaCit� Office(563)589-4133
ax�u,v.cnr,„�,ci�
U� � 1 � �� �I Fax(563)690-6689
TTY(563)690-6678
20o��2oi2�2oi3 finance@cityofdubuque.org
Masterpiece on the Mississippi 2017*2019 �'�'�'•cityofdubuque.org
January 15, 2021
Honorable Mayor, City Council Members, and Citizens of the City of Dubuque:
The City of Dubuque, Iowa, pursuant to the requirements set forth by state and federal regulations, hereby
submits the Comprehensive Annual Financial Report (CAFR) for the fiscal year ended June 30, 2020.
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 2020. 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 Administr�ative Requirement, Cost Principals, and Audit Requirements for Federal Awards
(Unifarm 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 �nancially 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 majar 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 2020 population estimate
for Dubuque is 57,882. As the largest city in the tri-state area, Dubuque serves as the hub of a trade area
with a population estimated at 250,000. As of October 2020, the Ciry's unemployment rate was 3.3%,
below the state unemployment rate of 3.6% and the 6.9%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 mayar 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 22% 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. Although COVID-19 has increased unemployment figures, Dubuque had boasted one of the
lowest unemployment rates in the United States in January 2020. Local unemployment rates continue to be
lower(7%)than statewide(8%) and national (11.1%) figures.
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Industrial
Dubuque Industrial Center West and South (DICW and DICS): Over 550 saleable acres were acquired in
1997, with an additional 163 acres purchased in 2015. The three areas of Dubuque Industrial Center
comprise 45 businesses with two of those businesses having arrived in 2019, along with two company
expansions. The area continues to have available locations for further investment and job creation.
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 $800 million has been invested in the downtown area in building
rehabilitation, new construction, and public improvements where more than 9,000 people work. Over
344 IBM employees work on two renovated floors of the nine-story Roshek Building. Heartland Financial
and Cottingham & Butler have partnered to purchase the Roshek Building in order to accommodate their
quickly expanding warkfarce. Buildout on portions of several floars of the building will provide office
space for an additiona120 Heartland employees in addition to their current 160 at this location. Cottingham
& Butler has hired 85 people in the last year in Dubuque, bringing their total employment to 1,050
employees.
Historic Millwork District: The Historic Millwork District is saturated with history. It imbues the area with
authenticiry 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.
Dupaco began a $37 million project to renovate the Voices Building in 2019, with plans to complete later
this year. The building will become home to the credit union's operations center and include a mix of retail,
entertainment and community space.
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
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. The property was rezoned in May 2020 to accommodate an anticipated $30
million mixed-use development providing commercial/retail and residential space.
Commercial Development: While COVID-19 slowed commercial construction season beginning in March
2020,building permit revenues still show a strong year for commercial remodels and new development.
JoAnn Fabric completed work on a new 30,000 square foot facility. The University of Dubuque constructed
a new student clinic, welcome center and outdoor space known as Wallace Commons. Hormel completed
renovations to add a new product line at their facility in the Industrial Park.
5
Plan review and construction continues 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 completed and opened a 27,000 sq. ft. aquatic facility on the north side of the school.
A two-story addition is being added to the Alternative Learning Center.
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
received the 2019 award for the civic infrastructure built on the Inclusive Dubuqe netwark 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 Proj ect was the seond proj ect 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
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Sustainability Tools far 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 $237 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 $24.9 million for stormwater infrastructure improvements related to the Bee Branch Watershed
Flood Mitigation Project. Specifically, this includes funding towards the $25 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 funding for the 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 funding for the 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.
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.
Another phase of the Bee Branch project is the $17.1 million Bee Branch Gate & Pump Replacement
Project. Improvements will modernize the gate and pump station where the Bee Branch Watershed drains
into the Mississippi. The improvements to the pump station will provide more pumping capacity and allow
for gravity flow under some circumstances such that it will be able to accommodate what is statistically
7
considered a 500-year event-the same level of protection to be provided by the upstream Bee Branch Creek
Restoration Project when the last component(the Bee Branch Creek Railroad Culverts Project) is complete.
The engineering design plans are 90% complete, under review by the US Army Corps of Engineers. The
City was awarded a $2.5 million U. S. Economic Development Administration (EDA) grant. However,
since being awarded the grant, the estimated project cost increased by $6 million, due in part to site
challenges. While the project will be ready for bidding in early 2021, the economic impact of the
COVID-19 pandemic will likely delay the project.
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, indoar 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 August of 2019, the City of Dubuque in partnership with Dubuque County and the
Iowa Department of Transportation(Iowa DOT) successfully completed and opened the new Southwest
Arterial/U.S. Hwy 52 corridor to vehicular traffic. The completed Southwest Arterial project is a 6.1-mile,
four-lane, divided freeway with priority-one access control between U.S. Hwy 20 and U.S. Hwy 61 / 151.
The new arterial bypass provides an alternate, direct and efficient route for traffic through southwestern
Dubuque,thereby reducing traffic congestion on the local street system. It also connects 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/ Seippel Road.
Without the collaborative partnership and funding of the Iowa DOT, the completion of the $163 Million
Southwest Arterial project would not have been possible. The Iowa DOT has contributed approximately
$115 Million to allow for the completion of the 4-lane highway, including bridges and interchanges at both
U.S. 20 and at U.S 61/151. The City contributed approximately$44 Million in federal, state, and local
match funds while Dubuque County contributed approximately$4 Million.
Following the completion of the Southwest Arterial, the new highway corridor 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:
8
• Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity
• Vibrant Community: Healthy and Safe
• Livable Neighborhoods and Housing: Great Place to Live
• Financially Responsible, High-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 rypes 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$2,068,897 far the year. The investment policy adopted by the city
council stresses the importance of capital preservation. The policy directives intend to minimize credit and
market risks while maintaining a competitive yield on the portfolio.
Risk Management: The City of Dubuque is a member of a statewide risk pool for local governments,the
Iowa Communities Assurance Pool(ICAP). The coverage for general and auto liability, as well as public
official and police professional liability are acquired through this pool. 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. Through May 15, 2020 warkers' 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 2020.
Coverage from a private insurance company is maintained for losses in excess of the stop-loss amount. As
of May 15, 2020 the City changed workers'compensation coverage providers. Under this new agreement,
9
the City is fully insured for all claims with the exception of sworn Police Officers and Fire Fighters
medical claims. 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 swarn Police Officers and Fire Fighters medical claims under a self-
insured retention of$750,000 for each accident.The accumulated reserve provision for such claims reflected
a$1,295,139 net position as of June 30, 2020. 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$4,012,974 as of June 30, 2020. 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 affirmed the Aa3 rating on outstanding general obligation
unlimited tax (GOULT) debt on October 2, 2020; 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 robust
financial position, a large tax base, a healthy wealth and income profile, and a somewhat inflated debt and
pension liabilities. On October 2, 2020, Moody's also affirmed the A2 rating on the water revenue debt.
The A2 rating incorporates moderate income service area, robust liquidity, an affordable debt profile, but a
small system size and marginal debt service coverage.
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, 2019. This was the 32nd
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 eligibiliry for another certificate.
GFOA also awarded a Distinguished Budget Presentation Award to the Ciry of Dubuque, Iowa, for its
annual budget for the fiscal year ended June 30, 202L 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 15th 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.
lo
Acknowledgments: The preparation of this report could not be accomplished without the efficient and
dedicated services of the entire Finance Department staf£ We also thank the mayor and city council for
their interest and support in planning and conducting the financial operations of the City of Dubuque in a
responsible and progressive manner. We also thank the independent certified public accountants, Eide
Bailly LLP,whose competent assistance and technical expertise have enabled the production of this report.
Sincerely,
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Michael C. Van Milligen Jennifer M. Larson
City Manager Director of Finance and Budget
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ia
Citizens of Dubuque
I
City Attorney City Council — City Clerk
Library _ _ Airport
ManagementlLegislative City Manager Neighborhood
' Develapment
Sustainability
Builtling Economic
Services Development �
Arts&Cultural
Affairs
Emergency Engineering
Communications
Finance & Fire
Budget
Am6ulance Emergency
Services Management
Housing&
Health Services Community
Development
Human
Resources Human Rights
Advancing Community
Equity Engagement
Information Leisure
Services Services
Recreation Parks
Civic Center Grand River
Planning police Center
Services
Multicultural
Family Center
Public public Works
Information
Metlia Geographic
Services Information
�stems
Transportation Water
Services
Parking Transit
Water&
Resource
Recovery Center
Electetl by the Appointetl by the Appointed by the Appointetl by the Appointetl by the
Citizens of Dubuque City Council Library Board of Airport Commission City Manager
Trustees
13
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30,2020
CITY COUNCIL
Roy D. Buol Mayor
Ric W. Jones Council Member—At Large
David T. Resnick Council Member—At Large
Brett M. Shaw Council Member—1 st Ward
Laura J. Roussell Council Member—2nd Ward
Danny Sprank Council Member—3rd Ward
Brad M. Cavanagh Council Member—4th Ward
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen City Manager
Barry A. Lindahl Senior Counsel
Crenna M. Brumwell City Attorney
Maureen A. Quann Assistant City Attorney
Kevin S. Firnstahl City Clerk
DEPARTMENT MANAGERS
Todd E. Dalsing Airport Manager
Cori L. Burbach Assistant City Manager/Acting Bldg Services Manager
Therese H. Goodmann Assistant City Manager
Gus N. Psihoyos City Engineer
Jill M. Connors Economic Development Director
Mark P. Murphy Emergency Communications Manager
Jennifer M. Larson Director of Finance and Budget
Rick A. Steines Fire Chief
Mary Rose Corrigan Health Services Manager
Alexis M. Steger Housing and Community Development Manager
Shelley M. Stickfort Human Resources Director
Kelly R. Larson Human Rights Director
Christine A. Kohlmann Information Services Manager
Marie L. Ware Leisure Services Manager
Susan A. Henricks Library Director
Jerelyn N. O'Connor Neighborhood Development Specialist
Randy W. Gehl Public Information Officer
John L. Klostermann Public Works Director
Wally C. Wernimont Planning Services Manager
Mark M. Dalsing Police Chief
Gina S. Bell Sustainable Community Coodinator
V. Renee Tyler Transportation Services Director
Denise C. Blakeley Ihrig Water Department Manager
William J. O'Brien Water&Resource Recovery Center Manager
14
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Financial Section
June 30, 2020
City of Dubuque, Iowa
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EideBailly
CPAs&BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and
Members of the City Council
City of Dubuque, lowa
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, lowa as of and for the year ended June 30, 2020 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 29 percent, 39
percent, and 18 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 GovernmentAuditing 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 GovernmentAuditing
Standards.
Whnt inspires you,inspires us. eidebailly.com
19
1545 Associates Dr.,Ste. 101 Dubuque,IA 52002-2299 T 563.556.1790 F 563.557.7842 EOE
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, lowa, as
of June 30, 2020, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Dubuque, lowa'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.
20
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 GovernmentAuditing Standards, we have also issued a report dated January 15,
2021, on our consideration of the City of Dubuque, lowa'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 GovernmentAuditing Standards in
considering the City's internal control over financial reporting and compliance.
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Dubuque, lowa
January 15, 2021
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Za
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2020
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, 2020. 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 $590,242,775 compared to net position of
$571,955,020 for fiscal year 2019.
• Governmental program revenues decreased by $3,382,631 from fiscal year 2019. This decrease
was due largely in part to a significant decrease in grant revenues in community and economic
development in relation to the HUD Resiliency grant.
• The City's business type activities program revenues increased $1,438,132. Charges for services
increased $192,744. Water (5%), sewer (4.5%), stormwater (6.83%), and refuse (1.63%) rates
were increased in fiscal year 2020. The Stormwater Fund had a $4,445,637 State of Iowa Flood
Mitigation grant (Sa1es Tax Increment) for the Bee Branch Creek Restoration project. There
were $88,955 capital contributions from outside developers for completed subdivisions. Capital
contributions received from governmental funds were $7,849,493 and are shown in the transfers
line and are detailed out in Note 5.
• Program expenses of the City's governmental activites increased approximately 6.0%, or
$5,600,405 from �scal year 2019 to fiscal year 2020. The increase was seen in public safety,
public works, community and economic development and general government, which is due to an
increase in expenditures related to pension liability accrual.
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, 2020
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, 2020
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 nonmajor 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.
PYoprietary 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 repart also presents certain required supplementary information concerning the budget and
actual results of the Ciry, 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 ircforination. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajar 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, 2020
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.
CITY OF DUBUQUE'S NET POSITION
Governmental Activities Business-type Activities Total
2020 2019 2020 2019 2020 2019
Current and other assets $ 106,111,268 $ 106,778,226 $ 44,069,688 $ 40,258,747 $ 150,180,956 $ 147,036,973
Capital assets 419,863,419 420,219,770 368,493,789 351,502,432 788,357,208 771,722,202
Total assets 525,974,687 526,997,996 412,563,477 391,761,179 938,538,164 918,759,175
Deferred outflows ofresources 11,802,331 12,964,250 1,223,366 1,486,850 13,025,697 14,451,100
Long-term liabilities 114,917,444 119,522,431 184,282,392 184,920,514 299,199,836 304,442,945
Otherliabilities 14,164,454 15,275,931 16,131,621 12,499,475 30,296,075 27,775,406
Totalliabilities 129,081,898 134,798,362 200,414,013 197,419,989 329,495,911 332,218,351
Deferred inflows of resources 30,834,711 28,519,375 990,464 517,529 31,825,175 29,036,904
Net position:
Net investment in capital assets 387,344,725 385,005,220 191,757,112 179,561,228 579,101,837 564,566,448
Restricted 26,501,434 28,321,603 3,187,364 3,131,716 29,688,798 31,453,319
Unrestricted (35,985,750) (36,682,314) 17,437,890 12,617,567 (18,547,860) (24,064,747)
Totalnetposition $ 377,860,409 $ 376,644,509 $ 212,382,366 $ 195,310,Sll $ 590,242,775 $ 571,955,020
Net position of the governmental activities increased $1,215,900 over fiscal year 2019 balance of
$376,644,509. Governmental activities had no capital assets donated from developers. Overall
grant revenues decreased by$4,311,880. 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, 2020
Net position for the business-type activities increased $17,071,855 over fiscal year 2019 of
$195,310,Sll. Charges for seroices increased $192,744. Grants increased $1,245,388. The increase in
net position is primarily due to transfers of capital assets from governmental funds of$7,849,493.
A portion of the Ciry's net position $29,688,798 or 5.0%represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal year 2020, 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 $50,125,551 in pension liability and
$5,882,693 in OPEB Liability.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$38,354,691 in 2020. Other governmental revenues included gaming$7,394,294, local option sales taxes
$9,652,332, and charges for services $17,067,410.
Governmental operating expenses during 2020 totaled $99,601,046. The largest programs were public
safety of $32,079,903, public works of $22,667,132, community and economic development of
$17,848,570, and culture and recreation of$13,576,571.
Business-type activities. Operating revenue increased $100,971. Operating expenses decreased from
$34,100,914 in 2019 to $33,312,066 in 2020. The decrease was primarily in supplies and services
and insurance expenses. Nonoperating expenses consist of interest expense of $4,641,707.
Investment earnings decreased from $798,497 in 2019 to $796,494 in 2020.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2020
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION
Governmental Activities Business-type Activities Total
2020 2019 2020 2019 2020 2019
Revenues:
Program revenues
Charges for services $ 17,067,410 $ 16,138,161 $ 34,451,197 $ 34,258,453 $ 51,518,607 $ 50,396,614
Operating grants and contributions 14,484,320 23,198,271 2,967,619 1,917,366 17,451,939 25,115,637
Capital grants and contributions 15,450,271 11,048,200 6,410,594 6,215,459 21,860,865 17,263,659
General revenues
Property taxes 38,354,691 37,973,888 - - 38,354,691 37,973,888
Local option sales tax 9,652,332 8,940,109 - - 9,652,332 8,940,109
Hotel/motel tax 2,117,506 2,113,273 - - 2,117,506 2,113,273
Utility franchise fees 4,976,472 5,072,350 - - 4,976,472 5,072,350
Gaming 7,394,294 8,730,986 - - 7,394,294 8,730,986
Unrestricted investment earnings 1,857,420 1,858,476 796,494 798,497 2,653,914 2,656,973
Gain on sale of capital assets 23,866 94,980 16,500 80,479 40,366 175,459
Total revenues 111,378,582 115,168,694 44,642,404 43,270,254 156,020,986 158,438,948
Expenses:
Public safery 32,079,903 29,637,417 - - 32,079,903 29,637,417
Public works 22,667,132 24,835,035 - - 22,667,132 24,835,035
Health and social services 1,677,181 1,442,658 - - 1,677,181 1,442,658
Culture and recreation 13,576,571 12,916,646 - - 13,576,571 12,916,646
Community and economic
development 17,848,570 15,837,039 - - 17,848,570 15,837,039
General government 8,821,692 5,944,116 - - 8,821,692 5,944,116
Interest on long-term debt 2,929,997 3,387,730 - - 2,929,997 3,387,730
Sewage disposal works - - 11,725,889 12,177,352 11,725,889 12,177,352
Water utility - - 7,631,411 7,892,423 7,631,411 7,892,423
Stormwaterutility - - 5,887,171 7,025,525 5,887,171 7,025,525
Parking facilities - - 3,414,851 2,850,531 3,414,851 2,850,531
America'sRiverProject - - 3,161 19,874 3,161 19,874
Refuse collection - - 4,387,683 4,215,881 4,387,683 4,215,881
Transit system - - 4,748,463 4,533,060 4,748,463 4,533,060
Salt - - 333,556 182,092 333,556 182,092
Totalexpenses 99,601,046 94,000,641 38,L32,185 38,896,738 137,733,231 132,897,379
Increase in net position
before 11,777,536 21,168,053 6,510,219 4,373,516 18,287,755 25,541,569
Transfers (10,561,636) (8,981,064) 10,561,636 8,981,064 - -
Increase in net position 1,215,900 12,186,989 17,071,855 13,354,580 18,287,755 25,541,569
Netposition,beginning 376,644,509 364,457,520 195,310,511 181,955,931 571,955,020 546,413,451
Netposition,ending $ 377,860,409 $ 376,644,509 $ 212,382,366 $ 195,310,511 $ 590,242,775 $ 571,955,020
28
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2020
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 $61,287,244 at June 30, 2020.
$6,106,661 is in nonspendable for inventory, receivables, and prepaid items. $69,412 is nonspendable
endowment corpus. $30,467,092 is restricted for debt seroice and bond ordinance, road use tax funds,
capital improvements, community development programs, employee benefits, endowments, and various
grants. Council ordinance has committed $5,823,218 far capital improvements. $1,396,196 is assigned
for capital improvements and equipment. This leaves $17,424,665 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 $575,150 to $26,889,718. Gaming revenues decreased by $1,314,408 or 15.1% in
fiscal year 2020. Charges for Services decreased $1,630,542 coupled with an increase in taxes and a
decrease investment earnings. General Fund expenditures increased from $59,398,698 in 2019 to
$60,501,091 in 2020. The $1,102,393 increase was primarily in the general government function of
$835,6ll, but increases were also in the public safety, culture and recreation, and communiry and
economic development functions.
The fund balance of special revenue fund Tax Increment Financing increased by$387,791 to $9,549,523.
Tax revenues increased by $357,275 due to expansions and new businesses added in Dubuque Industrial
Center West. Tax Increment Financing expenditures decreased$165,712.
The fund balance of the special revenue Community Development Fund decreased by$1,662,232 to
$5,600,261. Intergovernmental revenue decreased from$11,277,705 in 2019 to $10,666,574 in 2020
primarily for HUD Resiliency grant.
The Debt Service Fund paid$7,065,499 in principal and$2,985,797 in interest and fiscal charges during
fiscal year 2020.
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, 2020, totaled $212,382,366 of which the
unrestricted is $17,437,890.
The Sewer Fund had an increase of$947,264 for total net position of $30,413,588. Operating expenses
decreased $355,074 primarily for employee expense and supplies and services. The Sewer Fund
operating income from operations was $2,534,554.
The Water Utility had an increase in net position by $2,692,669 for total net position of $34,051,168.
Water rates were increased 5%in 2020.
The Storm Water Utility had an increase in net position of $12,713,362. Ending net position is
$82,775,919. Storm Water Utility had capital contributions of$12,343,834 which consisted of a capital
grant $4,688,744 and contribution of assets from governmental funds $7,655,090.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2020
The Parking Facilities had a decrease in net position of$886,870. Ending net position is $47,185,335.
Operating income decreased $752,774. Parking Facilities had operating loss of $889,279 after
depreciation of$1,173,158 for fiscal year 2020.
Other Enterprise Funds net position increased by $1,605,430 to $17,956,356. This was primarily due to
Transit's increase of$1,488,302 in net position.
BUDGETARY HIGHLIGHTS
There were three amendments to the City's 2019-2020 cash basis budget. The first amendment was
passed in September 2019 to reflect operating and capital budget carryovers (continuing appropriation
authority) from fiscal year 2019 and amended the fiscal year 2020 budget for operating and capital City
Council actions since the beginning of the fiscal year. The second budget amendment was passed in
November 2019 to reflect City Council actions since the second budget amendment and amendments to
add additional appropriation authority due to increased revenues. The third budget amendment was
passed in May 2020 to reflect budget cuts related to revenue losses caused by the pandemic.
The final budget for total cash basis receipts increased by $56,806,013. 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 $78,920,118 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 $69,686,594 less than the final amended budget; and, cash basis
expenditures were $95,933,410 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, 2020
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, 2020, amounts to $788,357,208 (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.
CAPITAL ASSETS (net of accumulated depreciation)
Governemental Activities Business-type Activities Total
2020 2019 2020 2019 2020 2019
Land $ 79,331,528 $ 78,777,621 $ 24,793,823 $ 24,805,263 $ L04,125,351 $ 103,582,884
Buildings 139,555,836 141,858,066 159,240,025 159,586,137 298,795,861 301,444,203
Improvements otherthan buildings 24,726,686 25,455,654 178,550,296 177,818,388 203,276,982 203,274,042
Machinery and equipment 52,381,639 51,673,620 ll5,073,585 113,861,028 167,455,224 165,534,648
Infrastructure 239,440,411 236,909,111 - - 239,440,411 236,909,111
Constructionin progress 59,256,754 56,019,935 34,113,325 11,853,774 93,370,079 67,873,709
Accumulated depreciation (174,829,435) (170,474,237) (143,277,265) (136,422,158) (318,106,700) (306,896,395)
$ 419,863,419 $ 420,219,770 $ 368,493,789 $ 351,502,432 $ 788,357,208 $ 771,722,202
Major expenditures during 2019-2020 were for the construction work on stormwater Bee Branch Creek
Restoration, Transit bus replacements, Kerper sanitary reconstruction, and water main replacements.
Long-term debt. At year end, the City had$252,847,074 of debt outstanding. During fiscal year 2020, the
City issued $4,240,000 of general obligation bonds, which was used for refunding. The City refunded
$4,370,000 of general obligation bonds. The refunding was undertaken to reduce total debt service
payments. The results of the transaction is a reduction of$193,675 in future debt service payments for an
economic gain of$167,292.
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 $10,478,152 of SRF debt in 2020 including $5,000 for green alley projects reducing
stormwater run off, $5,000 for Upper Bee Branch Stormwater improvements, $31,678 for Eagle Point
Park ecological restoration, $80,137 for the Catfish Creek stabilization project, $1,120,000 for CIWA
purchase, $866,260 for Kerper sewer project, $2,400,024 for Roosevelt tower, and $5,970,053 for upper
Bee Branch culverts. The City has pledged income derived from the acquired or constructed assets to pay
debtservice.
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 $239,298,248. With$109,020,970 of debt applicable against the capacity,
the City is utilizing 45.56% 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, 2020
ECONOMIC FACTORS
The City's unemployment rate as of November, 2020 was 3.3%, up from 2.3% in November, 2019. The
national average was 6.7% for November 2020, according to the Bureau of Labor Statistics. State of
Iowa was 3.6% as reported in November, 2020.
The assessed valuation of taxable properry, net of exemptions, increased by 2.45% to $2,825,245,000. In
fiscal year 2020, the minimum monthly refuse rate increased from$15.37 to $15.62, sewer rate increased
4.5%, water rates increased 5%, and the storm water monthly fee increased from $7.76 to $8.29 per
single family unit(SFU).
Impacts of the COVID-19 Pandemic. In mid-March of 2020, the Governor of Iowa ordered all food and
beverage facilities to suspend their indoor food and beverage services, and other non-essential businesses
were mandated to be closed to the public in an effort to reduce the spread of the coronavirus. The City
continued to provide essential services to the public,but City facilities were closed to the public.
The City Council adopted a revised budget recommendation for fiscal year 2021 to include a course of
action to help mitigate the financial burden of COVID-19,which included: 1) administratively initiated a
hiring freeze on most positions that are vacant or become vacant in Fiscal Year 2021, 2) froze all travel
budgets (conferences, education and training, and city business travel), 3) delayed some equipment
replacements,4) froze all capital projects unless the project was already under contract,had a grant
associated,was part of an agreement, or addressed health and safety, 5) no wage increase for
non-bargaining and bargaining unit employees in Fiscal Year 2021, 6) formed multiple employee work
groups to assist with the quarterly review of projections, and 7) departments were required to develop
budget reduction plans.
At the end of fiscal year 2020,there were reductions in revenues as projected. Significant General Fund
revenue reductions were in hotel/motel taxes, gaming revenue, construction permits, inspection fees, and
Parks and Recreation facility usage and program fees. These reductions,however,were offset by
expenditure reductions in most departments. While a decrease in General Fund balance was anticipated
due to the revenue reductions,the City was able to maintain the unreserved General Fund balance at the
same approximate level as budgeted. Due to the team effort of the City Council and City staff, as well as
the recovering economy and CARES (Coronavirus Aid, Relief, and Economic Security)Act funding, the
financial impacts of COVID-19 have not been as significant as originally projected for fiscal year 2020.
There are still however,revenue concerns going forward. City Council and City staff plan to use caution
going forward in fiscal year 2021 due to the uncertainty of these revenues as well as the economy
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, 2020
City of Dubuque, Iowa
33
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
JUNE 30,2020
Primary Government Component Units
Dubuque Dubuque
Metropolitan Dubuque Convenrion
Governmental Business-type Area Solid Initiatives and and Visitors
Activities Activities Total Waste Agency Subsidiaries Bureau
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 48,697,058 $ 29,487,015 $ 78,184,073 $ 7,962,484 $ 10,976,497 $ 112,376
Receivables
Property tax
Delinquent 1,096,305 - 1,096,305 - - -
Succeeding year 26,202,568 - 26,202,568 - - -
Accounts and other 2,729,268 3,834,133 6,563,401 530,045 27,373 28,384
Special assessments 426,964 - 426,964 - - -
Accrued interest 222,616 102,339 324,955 50,993 - -
Notes 2,465,755 - 2,465,755 - 47,065 -
Intergovernmental 7,101,310 4,032,439 11,133,749 19,123 - -
Inventories 1,559,798 1,034,062 2,593,860 - 133,347 9,041
Prepaid items 655,592 100,881 756,473 28,634 - -
TotalCurrentAssets 91,157,234 38,590,869 129,748,103 8,591,279 11,184,282 149,801
NONCURRENT ASSETS
Expendable restricted cash and investments 7,083,640 5,478,819 12,562,459 5,361,267 1,420,609 235,587
Nonexpendable restricted cash and investments 69,412 - 69,412 - - -
Notes receivable 7,800,982 - 7,800,982 - 105,267 -
Capital assets
Land 79,331,529 24,793,823 104,125,352 2,737,804 - -
Buildings 139,555,836 159,240,025 298,795,861 386,779 - 265,111
Improvements other than buildings 24,726,686 178,550,296 203,276,982 15,903,557 - 27,491
Machinery and equipment 52,381,639 115,073,585 167,455,224 3,990,168 - 105,385
Infrastructure 239,440,410 - 239,440,410 - - -
Construction in progress 59,256,755 34,ll3,325 93,370,080 3,295,599 - -
Accumulated depreciation (174,829,436) (143,277,265) (318,106,701) (9,427,780) - (126,925)
Total Noncurrent Assets 434,817,453 373,972,608 808,790,061 22,247,394 1,525,876 506,649
Total Assets 525,974,687 412,563,477 938,538,16�4 30,838,673 12,710,158 656,450
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 11,587,791 1,178,292 12,766,083 115,931 - -
OPEB related deferred outflows 214,540 45,074 259,614 4,945 - -
Total Deferred Outflows of Resources 11,802,331 1,223,366 13,025,697 120,876 - -
34
CITY OF DUBUQUE,IOWA EXHIBIT 1 (continued)
STATEMENT OF NET POSITION(continued)
JUNE 30,2020
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
LIABILITIES
CURRENT LIABILiTiES
Accountspayable $ 5,467,057 $ 4,956,180 $ 10,423,237 $ 391,015 $ 49,286 $ 255,583
Accruedpayroll 1,851,383 339,195 2,190,578 31,675 - 23,038
Loanspayable 251,865 1,063,545 1,315,410 - - 7,367
Notes payable 91,860 6,094,000 6,185,860 - - -
General obligation bonds payable 4,578,192 2,916,809 7,495,001 425,000 - -
Revenue bonds payable - 340,000 340,000 - - -
Tax increment financing bonds payable 590,000 - 59Q000 - - -
Accrued compensated absences 404,373 60,060 464,433 1,139 - -
Accruedinterestpayable 229,223 361,832 591,055 19,863 3,235 -
Intergovernmental payable 8,141 - 8,141 98,251 - -
Unearned revenue 692,360 - 692,360 - - 2,254
Total Current Liabilities 14,164,454 16,131,621 30,296,075 966,943 52,521 288,242
NONCURRENT LIABILITIES
Loans payable 3,647,429 1,088,786 4,736,215 - - 10,783
Notes payable - 110,871,647 110,871,647 - - -
General obligation bonds payable 37,407,321 33,304,047 70,711,368 7,699,672 - -
Revenue bonds payable - 32,366,267 32,366,267 - - -
Landfill closure and postclosure care - - - 1,981,708 - -
Tax increment financing bonds payable 18,235,306 - 18,235,306 - - -
Accrued compensated absences 5,611,886 658,903 6,270,789 211,858 - -
Netpensionliability 45,154,154 4,971,397 50,125,551 489,134 - -
Total OPEB liability 4,861,348 1,021,345 5,882,693 112,052 - -
Total Noncurrent Liabiliries 114,917,444 184,282,392 299,199,836 10,494,424 - ]0,783
Total Liabiliries 129,081,898 200,414,013 329,495,9ll 11,461,367 52,521 299,025
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 4,099,839 868,017 4,967,856 85,405 - -
OPEB related deferred inflows 277,024 58,203 335,227 6,385 - -
Succeeding year property tax 26,202,568 - 26,202,568 - - -
Deferred amount on refunding 255,280 64,244 319,524 - - -
Total deferred inflows ofresources 30,834,711 990,464 31,825,175 91,790 - -
NET POSITION
Net investment in capital assets 387,344,725 191,757,112 579,101,837 9,107,248 - 271,062
Restricted for/by:
Bond ordinance development agreement 2,140,740 3,187,364 5,328,104 - - -
Debt service 5,055 - 5,055 - - -
Employee benefits 57,032 - 57,032 - - -
Community development 8,776,446 - 8,776,446 - - -
Iowa Finance Authority Trust 1,235,968 - 1,235,968 - - -
Capitalprojects 12,157,094 - 12,157,094 - - -
Franchise agreement 618,857 - 618,857 - - -
Endowments,expendable 104,586 - 104,586 - - -
Endowments,nonexpendable 69,412 - 69,412 - - -
Other 1,336,244 - 1,336,244 - - -
State statute - - - 130,309 - -
Landfill closure and post closure care - - - 2,903,459 - -
Minority interest - - - 1,649,240 - -
Unrestricted (35,985,750) 17,437,890 (18,547,860) 5,616,136 12,657,637 86,363
Total Net Posirion $ 377,860,409 $ 212,382,366 $ 590,242,775 $ 19,406,392 $ 12,657,637 $ 357,425
See notes to financial statements.
35
CITY OF DUBUQUE,IOWA
STATEMENT OF ACTIVITIES EXHIBIT 2
FOR THE YEAR ENDED JUNE 30,2020
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 Govemmental Business-rype Area Solid Initiatives and Convention and
Functions/Programs Expenses Services Contributions Contributions Revenues Activities Activities Total Waste Agency Subsidiaries Visitors Bureau
Primary government
Governmental Activities:
Publicsafety $ 32,079,903 $ 2,641,633 $ 1,267,198 $ - $ 3,908,831 $ (28,171,072) $ - $ (28,171,072)
Public works 22,667,132 6,732,825 5,063,878 13,352,469 25,149,172 2,482,040 - 2,482,040
Health and social services 1,677,181 386,885 11,339 725 398,949 (1,278,232) - (1,278,232)
Cultureandrecreation 13,576,571 2,237,000 494,976 460 2,732,436 (10,844,135) - (10,844,135)
Community and economic development 17,848,570 2,515,823 7,646,929 1,659,370 11,822,122 (6,026,448) - (6,026,448)
General government 8,821,692 2,553,244 - 437,247 2,990,491 (5,831,201) - (5,831,201)
Interest on long-term debt 2,929,997 - - - - (2,929,997) - (2,929,997)
Total govemmental activities 99,601,046 17,067,410 14,484,320 15,450,271 47,002,001 (52,599,045) - (52,599,045)
Business-type activities
Sewage disposal works ll,725,889 12,606,632 - 69,575 12,676,207 - 950,318 950,318
Waterudlity 7,631,411 9,273,720 - 19,380 9,293,100 - 1,661,689 1,661,689
Stormwaterutiliry 5,887,171 5,061,855 380,606 4,688,744 10,131,205 - 4,244,034 4,244,034
Parking facilides 3,414,851 2,313,344 79,942 - 2,393,286 - (1,021,565) (1,021,565)
America'sRiverProject 3,161 - - - - - (3,161) (3,161)
Refuse collection 4,387,683 4,448,317 - - 4,448,317 - 60,634 60,634
Transitsystem 4,748,463 400,576 2,507,071 1,632,895 4,540,542 - (207,921) (207,921)
Salt 333,556 346,753 - - 346,753 - 13,197 13,197
Totalbusiness-typeactivities 38,132,185 34,451,197 2,967,619 6,410,594 43,829,410 - 5,697,225 5,697,225
Total primary government $ 137,733,231 $ 51,518,607 $ 17,451,939 $ 21,860,865 $ 90,831,4ll $ (52,599,045) $ 5,697,225 $ (46,901,820)
Component units
Dubuque Metropolitan Area Solid Waste
Agency $ 2,852,380 $ 6,915,660 $ 76,101 $ - $ 6,991,761 $ 4,139,381 $ - $ -
Dubuque inidatives and Subsidianes 101,790 - - - - - Q01,790) -
Dubuque Convenpon and Visitors Bureau 1,455,694 1,554,348 123,000 - 1,677,348 - - 221,654
TotalComponentUnits $ 4,409,864 $ 8,470,008 $ 199,101 $ - $ 8,669,109 4,139,381 (101,790) 221,654
Generalrevenues
Propertytaxes 38,354,691 - 38,354,691 - - -
Local option sales tax 9,652,332 - 9,652,332 - - -
Hotelmoteltax 2,ll7,506 - 2,117,506 - - -
Utility franchise fees 4,976,472 - 4,976,472 - - -
Gaming 7,394,294 - 7,394,294 - - -
Unrestricted inveshnent eamings 1,857,420 796,494 2,653,914 213,772 13,409 313
Miscellaneous - - - - 1,914,655 -
Gain on disposal of capital assets 23,866 16,500 40,366 - - -
Transfers (10,561,636) 10,561,636 - - - -
Total general revenues and transfers 53,814,945 11,374,630 65,189,575 213,772 1,928,064 313
Change in Net Position 1,215,900 17,071,855 18,287,755 4,353,153 1,826,274 221,967
Net position,beginning of year 376,644,509 195,310,511 571,955,020 15,053,239 10,831,363 135,458
Net position,ending of year $ 377,860,409 $ 212,382,366 $ 590,242,775 $ 19,406,392 $ 12,657,637 $ 357,425
See notes to financial statements
36
THIS PAGE IS INTENTIONALLY LEFT BLANK
37
CITY OF DUBUQUE, IOWA
BALANCE SHEET EXHIBIT 3
GOVERNMENTAL FUNDS
JUNE 30,2020
Special Revenue
Tax
Increment Community
General Financing Development
ASSETS
Cash and pooled cash inveshnents $ 21,203,339 $ 6,147,527 $ 1,797,978
Receivables
Property tax
Delinquent 667,139 319,783 -
Succeeding year 22,891,980 - -
Accounts and other 2,043,708 188,044 -
Special assessments 19,344 - -
Accrued interest ll2,645 54,071 12,229
Notes 4,536,665 289,800 3,886,725
Intergovernmental 1,197,287 - 2,547,762
Due from other funds 456,550 - -
Inventories 196,531 - 395,828
Prepaid items 412,362 - 21,196
Restricted cash and pooled cash inveshnents 220,741 2,634,920 -
Total Assets $ 53,958,291 $ 9,634,145 $ 8,661,718
LIABILITIES,DEFERRED INFLOW5 OF
RESOURCES AND FUND BALANCES
LIABiLITTES
Accounts payable $ 1,407,099 $ 84,622 $ 613,758
Accrued payroll 1,674,452 - 26,574
Intergovemmental payable - - -
Due to other funds - - -
Unearned revenue 574,676 - -
Total Liabilities 3,656,227 84,622 640,332
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax 22,891,980 - -
Special assessments 19,344 - -
Grants 21,804 - 2,421,125
Other 479,218 - -
Total Deferred Inflows of Resources 23,412,346 - 2,421,125
FUND BALANCES
Nonspendable
Endowment corpus - - -
inventory 196,531 - -
Long-term notes receivablc 4,536,665 - -
Prepaid items 412,362 - 21,196
Restricted
Endowments - - -
Library - - -
Police - - -
Veterans - - -
Debt service - - -
Bond ordinance - 2,140,740 -
Capital improvements 219,741 7,408,783 -
Franchise agreement - - -
Special assessments - - -
Iowa Finance Authority Trust - - -
Communityprograms - - 8,182,821
Employee benefits - - -
Committed,capital improvements - - -
Assigned
DRA gaming and distribution 1,396,196 - -
Unassigned 20,128,223 - (2,603,756)
Total Fund Balances 26,889,718 9,549,523 5,600,261
Total Liabilities,Deferred Inflows of Resources,
and Fund Balances $ 53,958,291 $ 9,634,145 $ 8,661,718
See notes to financial statements. 38
Other
Governmental
Debt Service Funds Total
$ - $ 12,584,785 $ 41,733,629
8,795 100,588 1,096,305
276,674 3,033,914 26,202,568
- 229,339 2,461,091
- 407,620 426,964
- 23,693 202,638
- 1,553,547 10,266,737
- 3,356,261 7,101,310
- - 456,550
- 901,636 1,493,995
- 38,271 471,829
- 4,297,391 7,153,052
$ 285,469 $ 26,527,045 $ 99,066,668
$ - $ 1,941,541 $ 4,047,020
- 117,814 1,818,840
- 8,141 8,141
- 456,550 456,550
- 117,685 692,361
- 2,641,731 7,022,912
276,674 3,033,914 26,202,568
- 389,289 408,633
- 860,905 3,303,834
3,740 358,519 841,477
280,414 4,642,627 30,756,512
- 69,412 69,412
- 901,636 1,098,167
- - 4,536,665
- 38,271 471,829
- 104,586 104,586
- 1,157,214 1,157,214
- 7,774 7,774
- 152,925 152,925
5,055 - 5,055
- - 2,140,740
- 8,563,640 16,192,164
- 618,857 618,857
- 18,331 18,331
- 1,235,968 1,235,968
- 593,625 8,776,446
- 57,032 57,032
- 5,823,218 5,823,218
- - 1,396,196
- (99,802) 17,424,665
5,055 19,242,687 61,287,244
$ 285,469 $ 26,527,045 $ 99,066,668
39
THIS PAGE IS INTENTIONALLY LEFT BLANK
40
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET EXHIBIT 3-1
TO THE STATEMENT OF NET POSITION
JUNE 30,2020
Total fund balances-governmental funds $ 61,287,244
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital assets used in governmental acriviries are not financial
resources and therefore are not reported in the funds.
Cost of capital assets $ 594,336,265
Accumulated depreciation (174,566,302)
419,769,963
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 325,720
Special assessments 408,633
Grants and other 3,819,592
4,553,945
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 of resources (4,139,180)
Deferred outflows of resources 11,479,690
7,340,510
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. 4,865,697
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds.Those liabilities consist o£
General obligation bonds (41,985,513)
Tax increment financing bonds (18,825,306)
Notes payable (91,860)
Loans payable (3,899,294)
Deferred amount on debt refundings (255,280)
Accrued interest (229,223)
Compensated absences (6,016,259)
Net pension liability (43,792,867)
Total OPEB liability (4,861,348)
(119,956,950)
Net position of governmental activities $ 377,860,409
See notes to financial statements.
41
CiTY OF DUBUQUE,iOWA
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES EXHIBIT 4
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2020
Special Revenue
Tax
Tncrement Community
General Financing Development
REVENUES
Taxes $ 35,404,753 $ 10,661,450 $ -
Special assessments - - 6,503
Licenses and permits 1,497,086 - -
Intergovernmental 1,885,616 - 10,666,574
Charges for services 10,585,690 - 120
Fines and forfeits 365,458 - -
Investment earnings 621,920 733,556 91,447
Contributions 948,412 188,045 11,ll 5
Gaming 7,394,294 - -
Miscellaneous 1,405,106 688,372 31,674
Total Revenues 60,108,335 12,271,423 10,807,433
EXPENDiTURES
Current
Public safety 29,515,413 - -
Public works 5,510,707 - -
Health and social services 991,911 - 348,633
Culture and recreation 12,967,384 - 91,065
Community and economic development 4,028,289 2,496,361 4,453,498
General government 6,845,841 - 24,481
Debt service
Principal - - -
Interest and fiscal charges 44,882 - 13,020
Capitalprojects 596,664 - 7,649,968
Total Expenditures 60,501,091 2,496,361 12,580,665
EXCESS(DEFICIENCY)OF REVENUES
OVER(iJNDER)EXPENDITURES (392,756) 9,775,062 (1,773,232)
OTHER FINANCING SOURCES(USES)
Issuance of debt - - -
Premium on bonds - - -
Transfers in 4,539,276 513,374 111,000
Transfers out (3,643,841) (10,509,885) -
Insurance recovery 19,422 - -
Sale of capital assets 53,049 609,240 -
Total Other Financing Sources(Uses) 967,906 (9,387,271) 111,000
NET CHANGE IN FiJND BALANCES 575,150 387,791 (1,662,232)
FLTND BALANCES,BEGINNING 26,314,568 9,161,732 7,262,493
FLTND BALANCES,ENDING $ 26,889,718 $ 9,549,523 $ 5,600,261
See notes to financial statements.
42
Other
Governmental
Debt Scrvice Funds Total
$ 280,677 $ 8,471,794 $ 54,818,674
- 69,891 76,394
- - 1,497,086
- 16,065,870 28,618,060
- 408,788 10,994,598
- - 365,458
�34� zsz,i26 i,699,ois
- 16,149 1,163,721
- - 7,394,294
- 1,391,937 3,517,089
280,643 26,676,555 110,144,389
- 3,102 29,518,515
- 6,328,105 ll,838,812
- - 1,340,544
- 140,929 13,199,378
- 5,707,258 16,685,406
- 577,117 7,447,439
7,065,499 - 7,065,499
2,985,797 722 3,044,42]
- 12,842,807 21,089,439
10,051,296 25,600,040 111,229,453
(9,770,653) 1,076,515 (1,085,064)
1,372,907 - 1,372,907
62,182 - 62,182
8,329,362 3,653,188 17,146,200
- (5,704,617) (19,858,343)
- 52,182 71,604
- 3,000 665,289
9,764,451 (1,996,247) (540,161)
�6,zoz> �9i9,�3z� �i,bzs,zas�
11,257 20,162,419 62,912,469
$ 5,055 $ 19,242,687 $ 61,287,244
43
THIS PAGE IS INTENTIONALLY LEFT BLANK
44
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXHIBIT 4-1
EXPENDITURES,AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30,2020
Net change in fund balances-total governmental funds $ (1,625,225)
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 $ 19,399,725
Transfers of capital assets to enterprise funds (7,849,493)
Depreciation expense (10,261,179)
1,289,053
�n 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. (1,604,533)
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 282,327
Special assessments (355,635)
Grants and other 1,076,337
1,003,029
Debt proceeds provide current financial resources to governmental funds,but
issuing debt increases long-term liabiliries 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 (1,435,089)
Debt repayments 7,065,499
5,630,410
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 12,752
Amartization of bond discount/premium 21,645
Increase in compensated absences (439,715)
Deferred amount on debt refundings (5,323)
Pension adjustment (3,137,995)
OPEB adjustment (64,419)
Total additional expenses (3,613,055)
�nternal 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. 136,221
Change in net position of governmental activities $ 1,215,900
See notes to financial statements.
45
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2020
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 3,916,552 $ 8,954,694 $ 13,689,675
Receivables
Accounts 1,550,320 1,164,994 590,615
Accrued interest 50,529 14,644 34,481
Intergovernmental - - 938,641
Prepaid items 1,746 15,440 61,960
Inventories 305,519 726,499 -
Total Current Assets 5,824,666 10,876,271 15,315,372
NONCURRENT ASSETS
Restricted cash and pooled cash investments 349,437 1,809,816 2,736,375
Capital assets
Land 254,858 209,244 21,393,569
Buildings 72,269,461 11,212,597 -
Improvements to other than buildings 50,845,742 2,243,414 120,319,432
Machinery and equipment 40,081,900 60,846,248 1,305,088
Construction in progress 4,174,510 7,583,453 22,160,959
Accumulated depreciation (66,838,207) (29,615,794) (19,191,760)
Net Capital Assets 100,788,264 52,479,162 145,987,288
Total Noncurrent Assets 101,137,701 54,288,978 148,723,663
TotalAssets 106,962,367 65,165,249 164,039,035
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 247,876 283,410 62,460
OPEB related deferred outflows 8,901 10,879 4,030
Total Deferred Outflows of Resources 256,777 294,289 66,490
46
EXHIBIT 5
Business-type Activities-Enterprise Funds
Governmental
Activities-
Parking Other Enterprise Internal Service
Facilities Funds Total Funds
$ 746,291 $ 2,179,803 $ 29,487,015 $ 6,963,429
103,320 424,884 3,834,133 268,177
2,685 - 102,339 19,978
- 3,093,798 4,032,439 -
9,047 12,688 100,881 183,763
- 2,044 1,034,062 65,803
861,343 5,713,217 38,590,869 7,501,150
383,404 199,787 5,478,819 -
2,900,152 36,000 24,793,823 -
62,216,456 13,541,511 159,240,025 -
3,795,798 1,345,910 178,550,296 -
2,425,115 10,415,234 115,073,585 356,590
194,403 - 34,113,325 -
(19,180,244) (8,451,260) (143,277,265) (263,134)
52,351,680 16,887,395 368,493,789 93,456
52,735,084 17,087,182 373,972,608 93,456
53,596,427 22,800,399 412,563,477 7,594,606
80,921 503,625 1,178,292 322,641
2,473 18,791 45,074 -
83,394 522,416 1,223,366 322,641
47
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2020
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 358,918 $ 1,324,941 $ 1,536,084
Accrued payroll 60,326 86,476 20,559
Loans payable-current - 1,000,000 -
General obligation bonds payable 633,584 732,649 1,000,952
Revenue bonds payable - 340,000 -
Capital loan notes payable 3,000,000 895,000 2,199,000
Accrued compensated absences 31,181 22,890 250
Accrued interest payable 128,397 64,791 150,776
Total Current Liabilities 4,212,406 4,466,747 4,907,621
NONCURRENT LIABILITIES
Loans payable - 1,000,000 -
General obligarion bonds payable 9,205,857 10,868,576 7,668,210
Revenue bonds payable - 3,839,794 28,526,473
Capital loan notes payable 61,798,641 9,283,948 39,789,058
Accrued compensated absences 127,586 261,640 11,413
Netpension liabiliry 1,045,836 1,195,762 263,522
Total OPEB liabiliry 201,692 246,512 91,321
Total Noncurrent Liabiliries 72,379,612 26,696,232 76,349,997
Total Liabilities 76,592,018 31,162,979 81,257,618
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 182,605 208,782 46,011
OPEB related deferred inflows 11,494 14,048 5,204
Deferred amount on refunding 19,439 22,561 20,773
Total Deferred Inflows of Resources 213,538 245,391 71,988
NET POSITION
Netinvestmentin capital assets 34,627,197 25,831,633 68,123,801
Restricted by bond ordinance/development agreement - 567,025 2,080,000
Unrestricted (4,213,609) 7,652,510 12,572,118
Total Net Position $ 30,413,588 $ 34,051,168 $ 82,775,919
See notes to financial statements.
48
EXHIBIT 5
Business-type Activities-Enterprise Funds
Governmental
Activities-
Parking Other Enterprise Internal Service
Facilities Funds Total Funds
$ 85,390 $ 1,650,847 $ 4,956,180 $ 1,420,037
23,729 148,105 339,195 32,543
63,545 - 1,063,545 -
534,956 14,668 2,916,809 -
- - 340,000 -
- - 6,094,000 -
2,325 3,414 60,060 -
15,166 2,702 361,832 -
725,111 1,819,736 16,131,621 1,452,580
88,786 - 1,088,786 -
5,209,965 351,439 33,304,047 -
- - 32,366,267 -
- - 110,871,647 -
8,911 249,353 658,903 -
341,412 2,124,865 4,971,397 1,361,287
56,025 425,795 1,021,345 -
5,705,099 3,151,452 184,282,392 1,361,287
6,430,210 4,971,188 200,414,013 2,813,867
59,612 371,007 868,017 237,683
3,193 24,264 58,203 -
1,471 - 64,244 -
64,276 395,271 990,464 237,683
46,453,406 16,721,075 191,757,112 93,456
540,339 - 3,187,364 -
191,590 1,235,281 17,437,890 4,772,241
$ 47,185,335 $ 17,956,356 $ 212,382,366 $ 4,865,697
49
CITY OF DUBUQUE,IOWA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30,2020
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
OPERATING REVENUES
Charges for sales and services $ 12,592,624 $ 9,223,000 $ 4,972,308
Other 12,463 49,979 60
Total Operaring Revenues 12,605,087 9,272,979 4,972,368
OPERATING EXPENSES
Employee expense 3,406,154 2,943,258 1,305,530
Utilities 757,125 827,417 28,525
Repairs and maintenance 851,294 207,802 88,050
Supplies and services 1,529,394 1,533,566 483,611
Insurance 101,283 87,170 58,444
Depreciation 3,425,283 1,212,928 1,921,046
Total Operating Expenses 10,070,533 6,812,141 3,885,206
OPERATING INCOME(LOSS) 2,534,554 2,460,838 1,087,162
NONOPERATING REVENUES(EXPENSES)
Intergovemmental - - 54,169
Investment earnings 171,508 224,393 330,956
Contributions - - 415,924
Interest expense (1,655,356) (819,270) (1,989,336)
Gain(loss)on disposal of assets 1,545 741 (12,629)
NetNonoperating Revenues(Expenses) (1,482,303) (594,136) (1,200,916)
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS 1,052,251 1,866,702 (113,754)
CAPITAL CONTRIBUTIONS 69,575 19,380 12,343,834
TRANSFERS IN - 949,471 483,282
TRANSFERS OUT (174,562) (142,884) -
CHANGE IN NET POSITION 947,264 2,692,669 12,713,362
NET POSITTON,BEGINNING 29,466,324 31,358,499 70,062,557
NET POSITION,ENDING $ 30,413,588 $ 34,051,168 $ 82,775,919
See notes to financial statements.
50
EXHIBIT 6
Business-type Activities-Enterprise Funds
Governmental
Other Activities-
Parking Enterprise Internal
Facilities Funds Total Service Funds
$ 2,173,719 $ S,155,740 $ 34,117,391 $ 14,298,761
139,625 39,906 242,033 70,112
2,313,344 5,195,646 34,359,424 14,368,873
832,278 5,242,008 13,729,228 2,443,277
337,524 112,748 2,063,339 37,632
232,103 1,100,492 2,479,741 54,093
525,502 1,661,851 5,733,924 11,643,220
102,058 65,482 414,437 174,646
1,173,158 1,158,982 8,891,397 40,868
3,202,623 9,341,563 33,312,066 14,393,736
(889,279) (4,145,917) 1,047,358 (24,863)
- 2,531,111 2,585,280 -
39,420 30,217 796,494 158,405
79,942 84,280 580,146 -
�i�d,sds� �i,igo� �4,64i,�o�> -
(35,663) (113,620) (159,626) 2,679
(92,866) 2,530,808 (839,413) 161,084
(982,145) (1,615,109) 207,945 136,221
194,403 1,524,575 14,151,767 -
414,246 1,695,964 3,542,963 -
(513,374) - (830,820) -
(886,870) 1,605,430 17,071,855 136,221
48,072,205 16,350,926 l 95,310,51 l 4,729,476
$ 47,185,335 $ 17,956,356 $ 212,382,366 $ 4,865,697
51
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2020
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
CASH FLOWS FROM OPERATING ACTIV ITIES
Cash received from customers $ 12,506,959 $ 9,088,706 $ 4,902,513 $ 2,200,072
Cash payments to suppliers for goods and services (4,011,612) (1,916,566) 429,089 (1,139,218)
Cash payments to employees for services (3,547,490) (2,764,086) (1,350,410) (802,079)
Other operating receipts 12,463 49,979 60 139,625
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTNITIES 4,960,320 4,458,033 3,981,252 398,400
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 949,471 483,282 414,246
Transfers to other funds (174,562) (142,884) - (513,374)
Contributions - - 415,924 79,942
Intergovernmental grant proceeds - - - -
NET CASH PROVIDED BY(USED FOR)
NONCAPITAL FINANCING ACTNITIES (174,562) 806,587 899,206 (19,186)
CASH FLOWS FROM CAPiTAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 1,545 741 - -
Acquisition and construction of capital assets (1,737,603) (3,946,290) (5,747,444) -
Proceeds from issuance of debt 2,028,430 4,844,418 6,346,265 126,133
Premium on debt issuance 40,573 48,688 ]0,819 5,410
Paymentofdebt (4,731,132) (4,133,779) (2,781,935) (780,290)
Interestpaid (1,668,972) (834,341) (2,066,462) (194,100)
Intergovernmental grant proceeds - - 369,602 -
NET CASH PROVIDED(USED FOR)CAPITAL
AND RELATED FINANCING ACTNITIES (6,067,159) (4,020,563) (3,869,155) (842,847)
CASH FLOWS FROM INVESTING ACTNITIES
Interest received 168,986 220,128 323,127 39,039
NET INCREASE(DECREASE)IN CASH AND
POOLED INVESTMENTS (1,112,415) 1,464,185 1,334,430 (424,594)
CASH AND CASH EQUNALENTS,BEGINNING 5,378,404 9,300,325 15,091,620 1,554,289
CASH AND CASH EQUNALENTS,ENDING $ 4,265,989 $ 10,764,510 $ 16,426,050 $ 1,129,695
52
EXHIBIT 7
Business-type Activities-Enterprise Funds
Governmental
Other Activities-
Enterprise Internal
Funds Total Service Funds
$ 4,733,441 $ 33,431,691 $ 14,258,473
�z,961,4zs� �9,s99,�32� �1z,�4�,ss�>
�s,o6o,�49� ��3,sz4,z�4� �z,364,43��
39,906 242,033 70,112
(3,248,227) 10,549,778 (783,433)
1,695,964 3,542,963 -
- (830,820) -
1,608,855 2,104,721 -
613,900 613,900 -
3,918,719 5,430,764 -
16,500 18,786 2,679
�4zo>ii�) �>>,ssi,4s4� -
- 13,345,246 -
- 105,490 -
��4,szz� ��z,44�,9sa� -
(2,064) (4,765,939) -
- 369,602 -
�a2o,so3> �is,zzo,22�� z,6�9
427,981 1,]79,261 158,304
677,970 1,939,576 (622,450)
1,701,620 33,026,258 7,585,879
$ 2,379,590 $ 34,965,834 $ 6,963,429
(Continued)
53
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2020
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Urility Utility Facilities
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTiViTiES
Operating income(loss) $ 2,534,554 $ 2,460,838 $ 1,087,162 $ (889,279)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 3,425,283 1,212,928 1,921,046 1,173,158
Change in assets and liabilities
(Increase)decreasein receivables (85,665) (134,294) (69,795) 26,353
(increase)decrease in inventories and prepaid items 25,870 (10,125) 19,854 310
Increase(decrease)in accounts payable (798,386) 749,514 1,067,865 57,659
Increase(decrease)in accrued liabilities (6,650) 47,154 3,648 (5,798)
Increase(decrease)net pension liability (292,865) (6,033) (83,048) (15,433)
(Increase)decrease in deferred outflows 103,382 31,308 28,562 12,149
Increase in deferred inflows 87,236 129,482 22,337 33,594
Increase(decrease)in total OPEB liability (32,439) (22,739) (16,379) 5,687
Total Adjustments 2,425,766 1,997,195 2,894,090 1,287,679
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTiVTTiES $ 4,960,320 $ 4,458,033 $ 3,981,252 $ 398,400
NONCASH CAPITAL AND RELATED FiNANCiNG
ACTIVITIES
Contribution of capital assets from outside sources $ 69,575 $ 19,380 $ 4,688,744 $ -
Contributions of capital assets from Governmental Activities $ - $ - $ 7,655,090 $ 194,403
See notes to financial statements.
54
EXHIBIT 7
(continued)
Business-type ActiviLies-Enterprise Funds
Governmental
Other Activities-
Enterprisc Internal
Funds Total Service Funds
$ (4,145,917) $ 1,047,358 $ (24,863)
1,158,982 8,891,397 40,868
(422,299) (685,700) (40,288)
(2,563) 33,346 (173,492)
(18,289) 1,058,363 (664,504)
16,865 55,219 4,620
(142,952) (540,331) (98,165)
88,083 263,484 60,190
200,286 472,935 112,201
19,577 (46,293) -
897,690 9,502,420 (758,570)
$ (3,248,227) $ 10,549,780 S (783,433)
$ - $ 4,777,699 $ -
$ - $ 7,849,493 $ -
55
CITY OF DUBUQUE,IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES EXHIBIT 8
AGENCY FUNDS
JUNE 30, 2020
Agency
Funds
ASSETS
Cash and pooled cash investments $ 1,921,801
Accounts receivable 57,633
Prepaids 7,552
Accrued interest 3,351
Total Assets $ 1,990,337
LIABILITIES
Due to other agency $ 1,990,337
Total Liabilities $ 1,990,337
See notes to financial statements.
56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary far 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 30,2020
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 Ciry 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, 2020, $652,637 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 Ciry 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 properry 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 far the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
Dubuque Convention and Visitors Bureau is a non-profit corporation organized under the laws of Iowa
and Section 501(c)(3) of the Internal Revenue Code. The Organization's purpose is to strengthen the
Dubuque area economy by competitively marketing the area as a destination for conventions,tour groups,
sporting events and individual travelers. The Organization's articles require that its board members
include one City Council member, the City of Dubuque Mayor and the City Manager. In the event of
dissolution, any assets or 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 30,2020
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-9ll 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 seroices. 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 ar segment. Taxes and other items not properly included among program revenues are
reported instead as geneNal 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 far 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 measurernent
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 ar soon enough thereafter to pay liabilities of the current period. Far this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period(year-end).
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 IncNement Financing Fund is used to account for the receipt of property taxes, for the
payment of proj ects 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 maj or 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 acci^ual 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 30,2020
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
As a general rule the effect of interfund activiry 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 reparted 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 30,2020
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, 2020, and 2020 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 30,2020
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 ageement, 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 30,2020
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 reparted 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 ineasuring 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 30,2020
NOTE 1 —SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Total OPEB Liability
For purposes of ineasuring 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 and OPEB 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 $4,034,50] for the governmental
activities and$2,448,390 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, 2020 consists of $5,055 far debt service and $57,032 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 30,2020
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 ar 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
autharity 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.
None of the City's policies qualify as stabilization arrangements.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 30,2020
NOTE 2—DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2020:
Internal Service Funds:
General Service $ 652,820
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 $11,261 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 $61,227,976, and the bank balance was
$62,024,494. The City's deposits in banks at June 30, 2020, were entirely covered by federal depository
insurance or by the State Sinking Fund in accardance 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
$13,322,551, and the bank balance was $13,322,551. The Agency's deposits in banks at June 30, 2020,
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 30,2020
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
Investments. As of June 30, 2020, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturiries(In Years)
Investment Type Less Than 1 1 to 5 6 to 10 More than 10 Total
Money Market Funds-
U.S. Treasury $ 1,962,700 $ - $ - $ - $ 1,962,700
U.S. Treasury Securities 2,097,587 1,859,971 - 3,235,784 7,193,342
Federal Agency Obligations 2,912,787 12,034,640 2,399,028 4,906,284 22,252,739
Corporate Stock 89,727 - - - 89,727
$ 7,062,801 $ 13,894,6ll $ 2,399,028 $ 8,142,068 $ 31,498,508
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 ar 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 of the Ciry'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 30,2020
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, communiry 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$1,487,929
as of June 30, 2020.
A reconciliation of cash and investments as shown on the government-wide statement of net position far
the primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 11,261
Carrying amount of deposits 61,227,976
Carrying amount of investments 31,498,508
Total $ 92,737,745
Government-wide
Cash and pooled cash investments $ 78,184,073
Cash and pooled cash investments-temporarily restricted 12,562,459
Cash and pooled cash investments-permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 1,921,801
Total $ 92,737,745
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 13,322,551
Total $ 13,323,751
Cash and pooled cash invesrinents $ 7,962,484
Cash and pooled cash investments-temporarily restricted 5,361,267
Total $ 13,323,751
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 31,2019)follows:
Deposits $ 10,976,497
Beneficial interest in assets held by others 1,420,609
Total $ 12,397,106
Cash and pooled cash investments $ 10,976,497
Cash and pooled cash investments-tempararily restricted 1,420,609
Total $ 12,397,106
A reconciliation of cash and investments as shown on the government-wide statement of net position for the
Dubuque Convention and Visitors Bureau(June 30,2020)follows:
Deposits $ 347,963
Total $ 347,963
Cash and pooled cash inveshnents $ 112,376
Cash and pooled cash investments-temporarily restricted 235,587
Total $ 347,963
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 far 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, 2020 the City had the following notes receivable.
Original Interest Current
Balance Rate Issued Maturity Balance Portion
Downtown Rehabilitation Loan Program
Harry&Rosey's $ 300,000 3 % 2011 7/1/2031 $ 226,568 $ 17,766
Clark Wolff 150,000 3 2001 5/1/2022 17,785 9,556
Gronen Adaptive 300,000 2 2006 5/1/2036 148,552 8,043
Plastic Center,Inc. 270,000 3 2020 6/1/2040 50,044 -
HJD Landlord LLC 466,000 3 2016 4/1/2036 466,000 4,111
Interstate Building LLP 300,000 3 2010 9/22/2015 219,137 18,540
Urban Development
Action Grant
40 Main,LLC-Note A 300,000 - 2009 6/30/2036 241,250 16,250
Downtown Housing Incentive Loan
Caradco Landlord,LLC 4,500,000 3 2012 6/1/2030 3,299,296 ll9,314
40 Main Real Estate Loan 156,583 - 2009 8/1/2022 156,583 -
Sales Tax Construction
DB&T Community
Development Corporation 1,700,000 - 2012 2/1/2032 1,700,000 1,700,000
$ 6,525,215 $ 1,893,580
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 4—NOTES RECEIVABLE (continued)
Interest Current
Rate Balance Portion
Communiry Development Installment Loans Receivables
Residential Rehabilitation Installment Loan Programs
First Time Home Buyers 6 %$ 249,879 $ 57,000
Local Housing Assistance Program(LHAP) 6 25,120 4,000
Homebuyers Assistance Program 6 1,294,797 109,000
Infill 6 221,652 1,000
RRP Reserve - 160,601 55,000
Washington Neighborhood Revitalize - 38,304 1,000
The Accessibility Rehabilitation Program(for rentals) 6 306,019 4,000
Iowa Finance Authority - 896,029 23,373
HOME Program(1) - 135,086 17,000
Historic Preservation Revolving Loan Fund/Historic
Preservation Housing Forgivable Loan Program
6 34,248 5,000
MicroLending - 89,987 6,000
TIF Receivables
Roasting Solutions - 289,800 289,800
$ 3,741,522 $ 572,173
(1)Principal payments deferred if one tenant is low income
At December 31, 2019, Dubuque Initiatives and Subsidiaries had the following notes receivable:
City of Dubuque, 5.00%,unsecured, matures July 2023 $ 152,332
Less: current maturities (47,065)
Noncurrent portion $ 105,267
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 5—INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2020, include amounts due to/from other funds. Interfund balances are as follows:
Due From Due To
Other Funds Other Funds
Governmental activities:
General Fund $ 456,500 $ -
Nonmajor Governmental - 456,500
$ 456,500 $ 456,500
These balances result from a time lag between the date that 1) transactions are recorded in the accounting system, and
2)payments between funds are made.
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 5—INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2020, consisted of the following:
Transfers From
Tax Sewer
Increment Nonmajor Disposal Water Parking
Transfer to General Financing Governmental Warks Utility Facilities Total
General $ - $ 433,860 $ 3,787,970 $ 174,562 $ 142,884 $ - $ 4,539,276
Tax increment
financing - - - - - 513,374 513,374
Community
development - 100,000 11,000 - - - 111,000
Debt service 1,109,870 6,298,308 921,184 - - - 8,329,362
Nonmajor
Governmental 538,407 2,320,880 793,901 - - - 3,653,188
Water utility - 942,591 6,880 - - - 949,471
Stormwater utility 299,600 - 183,682 - - - 483,282
Parking facilities - 414,246 - - - - 414,246
Nonmajor enterprise 1,695,964 - - - - - 1,695,964
$ 3,643,841 $ 10,509,885 $ 5,704,617 $ 174,562 $ 142,884 $ 513,374 $ 20,689,163
Net capital assets of $7,655,090 and $194,403 were transferred from governmental capital assets to Storm Water Utility and Parking Facilities,
respectively. The transfer was reported as a capital contribution in the Storm Water Utility and Parking Facilities Funds. 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.
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 6—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2020,was as follows:
Primary Government:
Governmental activities:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 78,777,621 $ - $ - $ 1,005,397 $ (451,489) $ 79,331,529
Conshuction in Progress 56,019,935 - (7,849,493) 17,549,977 (6,463,664) 59,256,755
Total Capital assets,not
being depreciated 134,797,556 - (7,849,493) 18,555,374 (6,915,153) 138,588,284
Capital assets,being
depreciated:
Buildings 141,858,066 - - 271,247 (2,573,477) 139,555,836
Improvements other
than buildings 25,455,654 - - 785,234 (1,514,202) 24,726,686
Machinery and equipment 51,673,620 - - 3,624,057 (2,916,035) 52,381,639
Infrashucture 236,909,111 - - 2,627,476 (96,177) 239,440,410
Total capital assets,being
depreciated 455,896,451 - - 7,308,014 (7,099,891) 456,104,574
Less accumulated
depreciation for:
Buildings (45,863,885) - - (2,398,084) 2,509,135 (45,752,834)
Improvements other
than buildings (12,474,217) - - (880,192) 614,834 (12,739,575)
Machinery and Equipment (29,858,954) - - (3,297,882) 2,745,936 (30,410,900)
Infrashucture (82,277,181) - - (3,725,891) 76,942 (85,926,130)
Total accumulated
depreciation (170,474,237) - - (10,302,049) 5,946,847 (174,829,436)
Total capital assets,being
depreciated,net 285,422,214 - - (2,994,035) (1,153,044) 281,275,135
Governmental activities
capital assets,net $ 420,219,770 $ - $ (7,849,493) $ 15,561,339 $ (8,068,197) $ 419,863,419
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 6—CAPITAL ASSETS (continued)
Business-type activities:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 24,805,263 $ - $ - $ - $ (11,440) $ 24,793,823
Construction in progress 11,853,774 7,849,493 - 17,557,084 (3,147,026) 34,113,325
Total Capital assets,not
being depreciated 36,659,037 7,849,493 - 17,557,084 (3,158,466) 58,907,148
Capital assets,being
depreciated:
Buildings 159,586,137 - - - (346,112) 159,240,025
Improvements other
than buildings 177,818,388 - - 916,199 (184,291) 178,550,296
Machinery and equipment 113,861,028 - - 2,922,367 (1,709,810) 115,073,585
Total capital assets,being
depreciated 451,265,553 - - 3,838,566 (2,240,213) 452,863,906
Less accumulated
depreciation for:
Buildings (55,366,625) - - (2,118,361) 346,ll2 (57,138,874)
Improvements other
than buildings (36,575,209) - - (3,004,617) 147,340 (39,432,486)
Machinery and equipment (44,480,324) - - (3,768,419) 1,542,838 (46,705,905)
Total accumulated
depreciarion (136,422,158) - - (8,891,397) 2,036,290 (143,277,265)
Total capital assets,being
depreciated,net 314,843,395 - - (5,052,831) (203,923) 309,586,641
Business-type activities
capital assets,net $ 351,502,432 $ 7,849,493 $ - $ 12,504,253 $ (3,362,389) $ 368,493,789
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 6—CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety $ 929,175
Public works 6,155,998
Health and social services 5,496
Culture and recreation 2,260,698
Community and economic development 68,541
General government 841,274
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 40,867
Total depreciation expense -governmental activities $ 10,302,049
Business-type activities:
Sewage disposal works $ 3,425,283
Water utility 1,212,928
Stormwater utility 1,921,046
Parking facilities 1,173,158
Refuse collection 317,135
Salt 27,639
Transit system 814,208
Total depreciation expense-business-type activities $ 8,891,397
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 6—CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency(Component Unit):
Beginning Ending
Balance Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 2,737,804 $ - $ - $ 2,737,804
Construction in progress 556,340 2,990,607 (251,348) 3,295,599
Total Capital assets,not
being depreciated 3,294,144 2,990,607 (251,348) 6,033,403
Capital assets,being
depreciated:
Buildings 386,779 - - 386,779
Improvements other
than buildings 16,901,278 251,348 (1,249,069) 15,903,557
Machineryandequipment 4,112,793 332,000 (454,625) 3,990,168
Total capital assets,being
depreciated 21,400,850 583,348 (1,703,694) 20,280,504
Less accumulated
depreciation for:
Buildings (74,124) (13,938) - (88,062)
Improvements other
than buildings (7,467,760) (351,046) 1,249,069 (6,569,737)
Machinery and equipment (2,804,766) (199,240) 234,025 (2,769,981)
Total accumulated
depreciarion (10,346,650) (564,224) 1,483,094 (9,427,780)
Total capital assets,being
depreciated,net 11,054,200 19,124 (220,600) 10,852,724
Dubuque Metropolitan Area
Solid Waste,capital assets $ 14,348,344 $ 3,009,731 $ (471,948) $ 16,886,127
Depreciation expense of$564,224 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 6—CAPITAL ASSETS (continued)
Dubuque Initiatives (Component Unit):
Beginning Ending
Balance Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 100,000 $ - $ (100,000) $ -
Total Capital assets,not
being depreciated 100,000 - (100,000) -
Capital assets,being
depreciated:
Buildings&Land
Improvements 12,000,000 - (12,000,000) -
Other Property 31,735 - (31,735) -
Total capital assets,being
depreciated 12,031,735 - (12,031,735) -
Less accumulated
depreciation for:
Buildings (472,744) (474,665) 947,409 -
Improvements other
than buildings (30,629) (73) 30,702 -
Total accumulated
depreciation (503,373) (474,738) 978,1ll -
Total capital assets,being
depreciated,net ll,528,362 (474,738) (11,053,624) -
Dubuque Initiatives,
capital assets $ 11,628,362 $ (474,738) $ (11,153,624) $ -
The Dubuque lnitiatives component unit entered into an agreement to sell the Roshek Building in exchange for cash proceeds of$9,527,861 and
various other non-cash considerations of$2,472,139.As a result of this transaction,Roshek Building,LLC results from operations have been
reported as miscellaneous income on the government wide statement of net position.
80
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 $114,120,500. During fiscal year 2020, the City issued $4,240,000 of general
obligation bonds, which was used for a current refunding of bonds. The City refunded $4,370,000 of
general obligation bonds. The refunding was undertaken to reduce total debt service payments. The
results of the transaction is a reduction of$193,675 in future debt service payments for an economic gain
of$167,292.
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, 2020, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Cotporate Purpose Series 2012A 03/15/2012 06/O1/14-06/O1/31 2.00-3.00 $ 4,380,000 $ 2,890,000
Corparate Purpose
and Refund Series 2012B 03/15/2012 06/O1/13-06/O1/31 2.00-3.13 7,495,000 4,900,000
CorparatePurpose 06/28/2012 06/O1/14-06/Ol/32 2.00-3.90 6,965,000 4,810,000
(taxable)Series 2012C
Corporate Purpose Series 2012D 06/28/2012 06/O1/14-06/O1/32 2.00-3.46 7,175,000 -
Cotporate Purpose Series 2012E 12/12/2012 06/O1/14-06/O1/32 2.00-3.00 3,640,000 2,190,000
Corparate Purpose
(taxable)Series 2012F 12/10/2012 06/O1/14-06/O1/22 1.00-2.20 1,035,000 275,000
CorparatePurpose Series 2012H 12/10/2012 06/O1/15-06/Ol/32 2.00-3.00 2,385,000 1,520,000
Corparate Purpose(taxable)
and Refund Series 2012I 12/04/2013 06/O1/13-06/O1/21 0.30-2.20 7,285,000 50,000
Cotporate Purpose Series 2014B 12/08/2014 06/O1/16-06/O1/34 3.00-3.65 18,835,000 15,845,000
Corparate Purpose(taxable)
Series 2014C 12/08/2014 06/O1/16-06/O1/34 3.00-4.16 7,615,000 7,045,000
CorparatePurpose Series2016A 04/04/2016 06/O1/U-06/Ol/35 2.00-3.75 2,830,000 2,310,000
Corparate Purpose Refunding
Series 2016B 04/04/2016 06/O1/16-06/O1/28 2.00-3.00 10,920,000 5,025,000
Cotporate Purpose Series 2016C 04/04/2016 06/O1/17-06/O1/35 2.00-3.13 4,145,000 3,420,000
Corparate Purpose Series 2017A 04/17/2017 06/O1/18-06/O1/30 3.00 8,495,000 4,925,000
Corporate Purpose
Refunding Series 2017B 04/U/2017 06/O1/18-06/Ol/30 3.00 9,745,500 7,730,000
Corparate Purpose
Refunding Series 2017C 04/17/2017 06/O1/18-06/O1/30 3.00-3.45 2,120,000 1,745,000
Cotporate Purpose Series 2018A 03/19/2018 06/O1/18-06/O1/31 3.00-4.00 4,950,000 4,300,000
Corparate Purpose
Refunding Series 2018B 03/19/2018 06/O1/18-06/O1/26 3.00-3.15 1,005,000 785,000
CorparatePurpose Series 2019A 06/20/2019 06/O1/22-06/Ol/39 3.00 2,240,000 2,240,000
Corporate Purpose Series 2019B 06/20/2019 06/20/20-06/O1/27 3.00 860,000 755,000
Corporate Purpose
Refunding Series 2019C 07/03/2019 06/O1/20-06/O1/32 3.00 4,240,000 3,905,000
$ 118,360,500 $ 76,665,000
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 7—LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2021 $ 4,578,192 $ 1,227,824 $ 2,916,809 $ 1,097,008
2022 3,452,405 1,108,727 3,007,595 1,013,605
2023 3,334,048 1,022,235 3,065,952 927,079
2024 3,079,188 936,395 3,020,812 835,757
2025 3,186,488 856,404 2,983,512 745,541
2026-2030 15,692,123 2,945,283 13,807,558 2,382,542
2031-2035 7,268,961 746,305 6,596,358 556,627
2036-2039 593,748 74,959 81,251 6,191
Total $ 41,185,153 $ 8,918,132 $ 35,479,847 $ 7,564,350
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, 2020, are as follows:
Amount Amount
Date of Interest Originally Outstanding �rrent
Purpose Issue Maturity Dates Rates Issued End of Year Partion
Diamond Jo Parking Ramp 10/16/07 06/O1/11-06/O1/37 7.50% $ 23,025,000 $ 18,985,000 $ 590,000
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2021 $ 590,000 $ 1,423,875
2022 635,000 1,379,625
2023 680,000 1,332,000
2024 730,000 1,281,000
2025 785,000 1,226,250
2026-2030 4,910,000 5,173,625
2031-2035 7,045,000 3,014,625
2036-2037 3,610,000 411,000
Total $ 18,985,000 $ 15,242,000
s2
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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, 2020, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Datcs Ratcs Issued End of Year
Water Uriliry Series 2008D 11/04/2008 06/O1/10-06/O1/23 3.00-5.00 % $ 1,195,000 $ 315,000
Water Utiliry Series 2010D 09/21/2010 06/O1/12-06/O1/30 2.00-4.00 5,700,000 3,850,000
Sales Tax Incrementa12014 06/14/2014 06/O1/23-06/O1/29 4.00-5.00 7,190,000 7,190,000
Sales Tax Incrementa12015A 06/15/2015 06/O1/23-06/O1/31 3.25-4.00 20,800,000 20,800,000
$ 34,885,000 $ 32,155,000
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
125% of the annual principal and interest payments on both bonds.
The City sha11 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 Ciry 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$501,658 and$3,898,159,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, 2020,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 $39,908,833.
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 Seroice 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 Business-type Activities
June 30 Principal Interest
2021 $ 340,000 $ 922,698
2022 355,000 910,598
2023 2,490,000 897,275
2024 3,535,000 1,139,525
2025 3,680,000 1,000,844
2026-2030 16,030,000 2,547,493
2031 5,725,000 335,400
Total $ 32,155,000 $ 7,753,833
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, 2020, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
40 Main LLC 08/06/09 06/30/11-06/30/21 6.50 % $ 690,529 $ 91,860 $ 91,860
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
2021 $ 91,860 $ 3,549
84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 2020 as part of the Bee Branch stormwater construction
project, $5,000 for green alley projects reducing stormwater run off, $80,136 for the Catfish Creek
stabilization project, $1,120,000 for CIWA purchase, $866,260 for Kerper sewer project, $2,400,024 for
Roosevelt tower, $31,678 for Eagle Point Park project, and $5,970,053 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, 2020, are as follows:
Final Amount
Date Maturity Interest Amount Outstanding Current
Purpose Authorized Date Rates Authorized End of Year Portion
Clear Wells 10/18/07 06/O1/28 2.00 % $ 1,037,000 $ 435,000 $ 48,000
West 32nd St.Detention Basin O1/14/09 06/O1/28 2.00 1,847,000 876,000 98,000
North Catfish Creek Stormwater O1/l3/10 06/O1/30 2.00 800,000 463,000 40,000
North Catfish Creek Sewer O1/13/10 06/O1/30 2.00 912,000 529,000 46,000
Water Meter Replacement 02/12/10 06/O1/30 2.00 7,676,000 1,991,000 154,000
Water and Resource Recovery Center 08/18/10 06/O1/39 2.00 74,285,000 57,961,000 2,538,000
Bee Branch Stormwater 10/27/10 06/O1/41 3.25 7,850,000 6,224,000 211,000
Cogeneration OS/17/13 06/O1/33 2.00 3,048,000 2,116,000 144,000
MeterReplacementSewer OS/3l/13 06/O1/30 3.25 3,058,000 1,991,000 154,000
Bee Branch Stormwater 06/19/15 06/O1/37 1.43 32,446,000 27,682,726 1,176,000
CIWAPurchase 07/07/17 06/O1/37 2.00 10,198,000 4,908,761 512,000
Roosevelt Tower 09/22/17 06/O1/40 2.00 4,400,000 2,844,187 181,000
Kerper Blvd 03/08/19 06/O1/38 0.75 2,763,000 2,201,642 118,000
Bee Branch Culverts 06/07/19 06/O1/40 2.00 16,382,000 6,742,332 674,000
$ 166,702,000 $ 116,965,648 $ 6,094,000
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 Starmwater 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 2.00%. 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; therefare, 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 2.00%. Annual payments began in Fiscal Year 2010,with the last payment in Fiscal Year 85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 2.00%. 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
204 L 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 204L The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned
by the Iowa Finance Authority and; therefore, constitutes direct barrowing.
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 ageement with the Iowa Finance Autharity 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.
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 7—LONG-TERM DEBT (continued)
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
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 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 0.75%. 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 ageement 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.
On August 9, 2019 the City entered into an agreement with the Iowa Finance Authority Drinking Water
Facilities Financing Program Revolving Loan Fund for a line of credit up to $4.4 million. This line of
credit was issued to finance the Roosevelt Street water tower and water distribution improvements and
the Eagle Point water treatment plant and water distribution improvements project by the Water 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 Water Fund. The debt
is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 7—LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year Business-rype Activities
June 30 Principal Interest
2021 $ 6,094,000 $ 2,249,380
2022 6,195,000 2,125,694
2023 6,313,000 2,012,040
2024 6,443,000 1,890,002
2025 6,573,000 1,765,389
2026-2030 33,535,093 8,120,610
2031-2035 27,156,186 4,992,402
2036-2040 24,255,369 1,171,454
2041 401,000 13,033
Total $ 116,965,648 $ 24,340,004
At June 30, 2020, the City of Dubuque had$14,911,317 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 2022. 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.
Loans Payable. Loans payable have been issued to fund several City projects. Loans payable at June 30,
2020, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Parking Lot Purchase 07/08/08 O1/O1/09-07/O1/23 5.0 % $ 400,000 $ 152,330 $ 63,545
Iowa Finance Autharity 08/26/11 06/O1/20-06/O1/30 3.0 4,500,000 3,299,296 201,865
Bowling&Beyond Ina 10/15/12 12/04/12-12/04/32 - 1,000,000 600,000 50,000
Central Iowa Water 12/O1/16 12/O1/17-12/O1/21 3.0 5,000,000 2,000,000 1,000,000
$ 10,900,000 $ 6,051,626 $ 1,315,410
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$9,1 ll 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 powntown 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$50,000 with final maturity in 2032. The debt is owned by Michael K.
Schmidt and; therefore, constitutes a direct borrowing.
ss
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 7-LONG-TERM DEBT (continued)
On December 1, 2016, the City issued a$S,OOO,OOO 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 Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2021 $ 251,865 $ 98,979 $ 1,063,545 $ 72,899
2022 257,921 92,923 1,034,205 34,017
2023 264,159 86,685 35,937 2,285
2024 270,583 80,261 18,645 466
2025 277,201 73,643 - -
2026-2030 2,477,567 216,665 - -
2031-2032 100,000 - - -
Total $ 3,899,296 $ 649,156 $ 2,152,332 $ 109,667
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2020, was as
follows:
Balance
Beginning Balance End Due Within
of Year Additions Reductions of Year One Year
Governmental activities:
General obligation bonds $ 46,149,135 $ 1,372,906 $ (6,336,888) $ 41,185,153 $ 4,578,192
Unaccreted premium 812,091 62,184 (34,124) 840,151 -
Unamortized discounts (43,398) - 3,607 (39,791) -
Total general obligarion bonds 46,917,828 1,435,090 (6,367,405) 41,985,513 4,578,192
Tax increment financing bonds 19,535,000 - (550,000) 18,985,000 590,000
Unamortized discounts (168,566) - 8,872 (159,694) -
Total tax increment financing bonds 19,366,434 - (541,128) 18,825,306 590,000
Notes payable 176,054 - (84,194) 91,860 91,860
Loanspayable 3,984,110 - (84,816) 3,899,294 251,865
Compensated absences 5,576,544 3,152,842 (2,713,127) 6,016,259 404,373
Total governmental activities $ 76,020,970 $ 4,587,932 $ (9,790,670) $ 70,818,232 $ 5,916,290
Business-type activities:
Generalobligationbonds $ 38,550,865 $ 2,867,094 $ (5,938,113) $ 35,479,846 $ 2,916,809
Unaccreted premium 724,182 105,490 (62,354) 767,318 -
Unamortized discounts (29,042) - 2,734 (26,308) -
Total general obligation bonds 39,246,005 2,972,584 (5,997,733) 36,220,856 2,916,809
Revenue bonds 32,485,000 - (330,000) 32,155,000 340,000
Unaccreted premium 666,808 - (66,360) 600,448 -
Unamortized discounts (54,108) - 4,927 (49,181) -
Total revenue bonds 33,097,700 - (39l,433) 32,706,267 340,000
Notes payable 111,655,589 10,478,152 (5,168,094) ll6,965,647 6,094,000
Loans payable 3,152,331 - (1,000,000) 2,152,331 1,063,545
Compensated absences 704,575 349,193 (334,805) 718,963 60,060
Total business-type activities $ 187,856,200 $ 13,799,929 $ (12,892,065) $ 188,764,064 $ 10,474,414
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund. 89
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 7—LONG-TERM DEBT (continued)
Legal Debt Margin Calculation.
Estimated actual value $ 4,785,964,957
Debt limit- 5% of total actual 239,298,248
valuation
Debt applicable to limit (109,020,970)
Legal debt margin $ 130,277,278
Dubuque Metropolitan Area Solid Waste Agency
General Obligation Bonds. Dubuque Counry, Iowa issued a general obligation landfill facilities bond to
provide funds for the acquisition and construction of majar 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, 2020 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/O1/16-06/O1/34 2.0-4.0 % $ 4,500,000 $ 3,535,000
Landfill Facility 12/28/2016 06/O1/17-06/O1/36 3.0 5,100,000 4,385,000
$ 9,600,000 $ 7,920,000
Annual debt service requirements to maturity of the general obligation bond is as follows:
Fiscal Year June 30 Principal Interest
2021 $ 425,000 $ 238,359
2022 435,000 225,609
2023 450,000 210,459
2024 465,000 198,609
2025 475,000 186,065
2026-2030 2,605,000 719,488
2031-2035 2,725,000 300,435
2036 340,000 11,050
Total $ 7,920,000 $ 2,090,074
90
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 7—LONG-TERM DEBT (continued)
Changes in Long-Term Liabilities. Long term liability activity for the year ended June 30, 2020 is as
follows:
Balance
Beginning Balance Due Within
of Year Additions Reductions End of Year One Year
General obligation bond $ 8,330,000 $ - $ (410,000) $ 7,920,000 $ 425,000
Unaccreted premium 217,529 - (12,857) 204,672 -
Total general obligation bond $ 8,547,529 $ - $ (422,857) $ 8,124,672 $ 425,000
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 Ciry
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. Through May 15, 2020 warkers'
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 2020. Coverage from a private insurance company
is maintained for losses in excess of the stop-loss amount. As of May 15, 2020 the City changed workers'
compensation coverage providers. Under this new agreement,the City is fully insured for all claims with
the exception of sworn Police Officers and Fire Fighters medical claims. 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 liabiliry of $873,589 in the Health Insurance Reserve
Fund and $499,557 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, 2020 and 2019, are summarized as follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 30,2018 $ 499,834 $ 996,687
Claims and changes in estimates during fiscal year 2019 9,637,510 693,550
Claimpayments (9,161,398) (667,147)
Liabilities at June 30,2019 975,946 1,023,090
Claims and changes in esrimates during fiscal year 2020 10,259,919 -
Claimpayments (10,362,276) (523,533)
Liabilities at June 30,2020 $ 873,589 $ 499,557
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 787 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 inembership and are maintained not to exceed 300 percent of the total current
members' basis rates or to comply with the requirements of any applicable regulatory authority having
jurisdiction over the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual 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 Ciry's properry 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 Poo1 for
the year ended June 30, 2020,were $986,843.
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, 2020, settled claims have not
exceeded the risk pool or reinsurance company coverage since the Pool's inception.
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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, 2020.
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 Ciry has recognized as a liability only that portion of construction contracts representing
construction completed through June 30, 2020. The City has additional commitments for signed
construction contracts of$24,645,567 as of June 30, 2020. 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, 2020. DMASWA has an
additional commitments for a signed construction contracts of$1,350,786 as of June 30, 2020. 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, 2020, the City has
expended$52,182,117 on the project. Upon completion of the project, the Southwest Arterial will be
reverted to the State of Iowa.
94
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 Ciry 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 goup to be eligible for life insurance
benefits. There are approximately 543 active and 46 retired members in the plan, as of most recent
actuarial valuation report.
Fundin_�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$5,882,693 was measured as of June 30, 2020, and
was determined by an actuarial valuation as of June 30, 2020. The City's proportion is based on the
number of employees in the plan. The City's proportion was 98.13% as of June 30, 2020.
Changes in the Total OPEB Liability
Total OPEB Liabiilty
Total OPEB Liability beginning of year $ 6,121,366
Changes for the year:
Service cost 288,187
Interest 165,496
Other changes (49,951)
Changes in experience (242,264)
Changes in assumptions (19,983)
Benefit payments (380,158)
Net Changes (238,673)
Total OPEB Liability end of year $ 5,882,693
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Methods and Assumptions - The total OPEB liability in the June 30, 2020 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, 2020 3.00%per annum
Rates of salary increase 4.00%per annum,
effective June 30, 2020 including inflation
Discount rate 2.66% compounded annually,
effective June 30, 2020 including inflation
Healthcare cost trend rate 6.50% initial rate decreasing by 014%
effective June 30, 2020 annually to an ultimate rate of 4.50%
Discount Rate - The discount rate used to measure the total OPEB liability was 2.66% 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 PubG.H-2010 Mortality Table. Annual retirement and termination
probabilities were developed consistent with the City's experience and the IPERS and MFPRSI
retirement patterns.
Proj ected claim costs of the medical plan are $12,299-$17,508 per year for retirees depending on the age
of retiree. The actuarial assumptions used in the June 30, 2020 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(1.66%) or 1%higher(3.66%)than the current discount
rate.
1% Decrease (1.66%) Discount Rate (2.66%) 1%Increase(3.66%)
Total OPEB Liability $ 6,356,003 $ 5,882,693 $ 5,442,330
Sensitivity of the City's Total OPEB Liability to Chang,es 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(5.50%) or 1%higher
(7.50°/o)than the current healthcare cost trend rates.
1%Decrease (5.50°/o) Healthcare Cost Trend 1%Increase (7.50°/o)
Rate (6.50%)
Total OPEB Liability $ 5,249,207 $ 5,882,693 $ 6,633,694
96
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources Related to OPEB -For the year ended June 30,
2020 the City recognized OPEB expense of$452,022. At June 30, 2020 the City reported deferred
outflows of resources related to OPEB from the following sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Changes in Experience $ - $ 218 458
,
Changes in Assumptions (259,614) 116,769
$ (259,614) $ 335,227
The amount reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized as OPEB expense as follows:
Year Ending June 30 Deferred Outflows of Resources Deferred Inflows of Resources
2021 $ 34,897 $ (36,557)
2022 34,897 (36,557)
2023 34,897 (36,557)
2024 34,897 (36,557)
2025 34,897 (36,557)
Thereafter 85,129 (152,442)
$ 259,614 $ (335,227)
Dubuque Metropolitan Area Solid Waste Agencv Specific(DMASWA) OPEB Disclosures
Total OPEB Liabilitv-DMASWA OPEB liability of$ll2,052 was measured as of June 30, 2020, and
was determined by an actuarial valuation as of June 30, 2020. The Agency's portion is based on the
number of employees in the plan. The Agency's portion was 1.87% as of June 30, 2020.
Total OPEB
Liability
Total OPEB Liability beginning of year $ 117,066
Changes for the year:
Service Cost 5,489
Interest 3,152
Other Changes (1,418)
Changes in experience (4,615)
Changes in assumptions (381)
Benefit payments (7,241)
Net Changes (5,014)
Total OPEB Liability end of year $ ll 2,052
97
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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(1.66%) or 1%higher(3.66%) than the
current discount rate.
1%Decrease (1.66%) Discount Rate (2.66%) 1%Increase (3.66%)
Total OPEB Liability $ 121,066 $ 112,052 $ 103,663
Sensitivity of the DMASWA's Total OPEB Liability to Chan�es 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(5.50%)
or 1%higher(7.50%) than the current healthcare cost trend rates.
1%Decrease (5.50%) Healthcare Cost Trend 1% Increase (7.50%)
Rate (6.50%)
Total OPEB Liability $ 99,985 $ 112,052 $ 126,356
OPEB Expense and Deferred Outflows of Resources Related to OPEB -For the year ended June 30,
2020 the DMASWA recognized OPEB expense of$8,610. At June 30, 2020 the DMASWA reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Changes in Experience $ - $ (4,161)
Changes in Assumptions 4,945 (2,224)
$ 4,945 $ (6,385)
The amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB
expense as follows:
Deferred Outflows of Deferred Inflows of
Year Ending June 30 Resources Resources
2021 $ 665 $ (696)
2022 665 (696)
2023 665 (696)
2024 665 (696)
2025 665 (696)
Thereafter 1,620 (2,905)
$ 4,945 $ (6,385)
98
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 $9,429,159 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 9ll7, Des Moines,Iowa 50306-9117 or at www.ipers.or�.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits —A Regular member may retire at 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.
99
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 wi11 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 2020, 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, 2020 were $2,459,936. The Dubuque
Metropolitan Area Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2020
were $62,182.
Citv Suecific IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2020, the City reported a liabiliry of $19,350,354 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2019, 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 liabiliry was based on the
City's share of contributions to IPERS relative to the contributions of all IPERS participating employers.
At June 30,2019,the City's collective proportion was .33194%which was a decrease of-0.00135%from
its proportion measured as of June 30, 2018.
100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 11—EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2020,the City recognized pension expense of$3,243,4ll. At June 30, 2020,
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
Differences between expected and
actual experience $ 53,645 $ 695,737
Changes of assumptions 2,072,700 -
Net difference between projected and actual - 2,180,553
earnings on IPERS'investments
Changes in proportion and differences between
City's contributions and City's proportionate share
of contributions - 502,336
City contributions subsequent to the
measurement date 2,459,936 -
Total $ 4,586,281 $ 3,378,626
$2,459,936 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, 2021. 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
2021 $ 198,509
2022 (625,853)
2023 (409,103)
2024 (369,913)
2025 (45,921)
$ (1,252,281)
Sensitivity of the Cit. '�portionate 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.
lol
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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: $ 34,359,983 $ 19,350,354 $ 6,760,443
Dubuque Metropolitan Area Sold Waste A�encv 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, 2020, the DMASWA reported a liability of$489,134 for its
proportionate share of the net pension liabiliry. The net pension liability was measured as of June 30,
2019, 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, 2019, the DMASWA's collective proportion was 0.008391% which
was an increase of 0.0001934%from its proportion measured as of June 30, 2018.
For the year ended June 30, 2020, the DMASWA recognized pension expense of$81,986. At June 30,
2020, 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 $ 1,356 $ 17,587
Changes of assumptions 52,393 -
Net difference between projected and actual - 55,120
earnings on IPERS'investments
Net changes in proportion and differences between
Agency's contributions and Agency's proportionate
share
of contributions - 12,698
Agency contributions subsequent to the
measurement date 62,182 -
Total $ 115,931 $ 85,405
102
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 11—EMPLOYEE PENSION PLANS (continued)
$62,182 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, 2021. Other amounts reparted as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2021 $ 5,018
2022 (15,820)
2023 (10,341)
2024 (9,351)
2025 (1,162)
$ (31,656)
Sensitivitv of the Agenc. '�portionate Share of the Net Pension Liability to Chan�es in the Discount
Rate - The following presents the Agency's proportionate share of the net pension liability calculated
using the discount rate of 7.00%, 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 netpension liability: $ 868,543 $ 489,134 $ 170,889
There were no non-employer contributing entities at IPERS.
Actuarial Assumptions - The total pension liability in the June 30, 2019, 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 goup.
Long-term Investment rate of return 7.00% , compounded annually,net of investment
(effective June 30, 2017) expense, including inflation.
Wage Growth 3.25°/o per annum based on 2.60°/o inflation
(effective June 30, 2017) and 0.65%real wage inflation
103
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 11—EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2019 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 2019 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 suininarized in the following table:
Asset Long-Term Expected
Asset Class Allocation Real Rate of Return
Domestic equity 22 % 5.60°/a
International equity 15 6.08
Global smart beta equity 3 5.82
Core plus fixed income 27 1.71
Public credit 3.5 3.32
Public real assets 7 2.81
Cash 1.0 (0.21)
Private equity 11 10.13
Private real assets 7.5 4.76
Private credit 3 3.01
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 proj ected benefit payments to determine the total pension liability.
Il'ERS' 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.
Pavables to IPERS - At June 30, 2020, the City reported payables to the defined benefit pension plan of
$104,231 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.
104
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 4ll 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 bene�t
calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the
greater of 50% of the member's average �nal 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.
105
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 41 L6 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$100,0001ump-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,
2020.
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 24.41% for the year ended June 30, 2020.
The City's contributions to MFPRSI for the year ended June 30, 2020 was $3,631,952.
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, 2020.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2020, the City reported a liability of $30,775,196 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2019, and the total pension liability used to calculate the new pension liability was determined by an
106
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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, 2019, the City's proportion was 4.691866% which was a decrease of 0.172025%
from it proportions measured as of June 30, 2018.
For the year ended June 30, 2020, the City recognized pension expense of$6,185,748. At June 30, 2020,
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 $ 1,059,736 $ 287,981
actual experience
Changes of assumptions 1,545,167 133,943
Net difference between projected and actual
earnings on pension plan investments 1,695,596 -
Changes in proportion and differences between 247,343 1,167,309
City contributions and proportionate share
of contributions
City contributions subsequent to the 3,631,952 -
measurement date
Total $ 8,179,794 $ 1,589,233
$3,631,952 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, 2021. 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
2021 $ 1,542,875
2022 195,386
2023 676,980
2024 S ll,965
2025 31,403
$ 2,958,609
107
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions - The total pension liability in the June 30, 2019 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, 2019 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 two years and disabled individuals set-forward three years (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:
Long-Term Expected
Asset Class Real Rate of Return
Large Cap 5.5%
Small Cap 5.8
International Large Cap 7.3
Emerging Markets 9.0
Emerging Market Debt 6.3
Private Non-Core Real Estate 8.0
Master Limited Partnerships 9.0
Private Equity 9.0
Core Plus Fixed Income 3.3
Private Core Real Estate 6.0
Tactical Asset Allocation 6.4
108
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 proj ected benefit payments to determine the total pension liability.
Sensitivity of Cit. '�portionate Share of the Net Pension Liability to Chan�es 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% Discount 1%
Decrease Rate Increase
(6.50)% (7.50)% (8.50)%
City's proportionate share of
the net pension liability: $ 50,107,415 $ 30,775,196 $ 14,764,335
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 MFPRSPs website at
www.mfprsi.org.
Pavables to MFPRSI-At June 30, 2020, City of Dubuque,Iowa reported payables to the defined benefit
pension plan of $165,066 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.
109
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
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 far 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:
2020
Closure $ 3,468,474
Post-closure care 2,265,000
Totals $ 5,733,474
The total closure and post-closure care costs for the DMASWA has been estimated at approximately
$5,733,474 as of June 30, 2020, and the portion of the liability, that has been recognized is $1,981,708.
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, 8, and 6% of cell 9. 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
$4,885,167 as of June 30, 2020. The Agency will recognize the remaining estimated cost of closure and post
closure care of$4,228,766 over the estimated remaining life of 18 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, 2020 is $5,872,087, with $142,423 of depreciation expense during
the year ended June 30, 2020. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2020, the DRA lease generated$3,961,996 in lease revenue.
110
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 14—SUBSEQUENT EVENTS
On July 7, 2020, the City of Dubuque accepted the Miracle League Complex project. The final cost of the
project totaled$3,354,079. The City owns all amenities constructed by Miracle League of Dubuque and they
become a part of Veterans Memorial Park. The Miracle League Complex will be used and owned by the City
as a public park to be enjoyed by all. The Miracle League of Dubuque project improvements are subject to a
lease agreement. The lease agreement between the City of Dubuque and Miracle League of Dubuque will
govern the usage of the park. The lease agreement has a term that is 25 years and started upon the date of
City Council acceptance. Miracle League of Dubuque will have preferential but non-exclusive use of the
Miracle League Complex.
NOTE 15—CONTINGENCIES
The COVID-19 outbreak is disrupting business accross a range of industries in the United States and
financial markets have experienced a significant decline. As a result,local,regional and national economies,
including that of the City, may be adversly impacted. The extent of the financial impact of COVID-19 will
depend on future developments, including the duration and spread,which are uncertain and cannot be
predicted. Due to the uncertainties surrounding the outbreak, management cannot presently estimate the
potential impact to the City's operations and finances.
NOTE 16—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, 2021. 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 far the fiscal year June 30, 2022. The objective of this Statement
is to better meet the information needs of financial statements users by improving accounting and financial
reporting far 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, 2022. 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 Equiry Interest-an amendment of GASB Statement No. 14 and No. 61, will be
effective for the fiscal year June 30, 2021. The primary objective of this Statement are to improve the
consistency and comparability of reporting a government's majarity equiry 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, 2023. The primary
obj ectives of this Statement are to provide a single method of reparting 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.
111
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 16—PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
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.
Statement No. 93, Replacement of Interbank Offered Rates, issued March 2020,will be effective for the City
beginning with its fiscal year ending June 2022. The objective of this Statement is to address accounting and
financial reporting implications that result from the replacement of an interbank offered rate (IBOR).
Statement No. 94, Public-Private and Public-Public Partnerships and Availability Payment Arrangements,
issued March 2020,will be effective far the City beginning with its fiscal year ending June 30, 2023. The
primary objective of this Statement is to improve financial reporting by addressing issues related to
public-private and public-public partnership arrangements (PPPs).
Statement No. 96, Subscription-Based Information Technology Arrangements, issued in May 2020, will be
effective for fiscal year ending June 30, 2023. This Statement provides guidance on the accounting and
financial reporting for subscription-based information technology arrangements (SBITAs) for government
end users (governments).
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans, issued June 2020,will be effective for the fiscal
year ended June 30, 2022. This Statement will result in more consistent financial reporting of defined
contribution pension plans, defined contribution OPEB plans, and other employee benefit plans,while
mitigating the costs associated with reporting those plans.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
112
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2020
NOTE 17—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 ar to pay the developers a predetermined dollar amount. No other commitments were
made by the City as a part of these ageements.
For the year ended June 30, 2020, the City abated $2,454,454 of property tax under the urban renewal and
economic developmentprojects.
113
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114
Required Supplementary Information
June 30, 2020
City of Dubuque, Iowa
115
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, 2020
Budgeted Amounts Final to Actual
Actual Original Final Variance
RECEIPTS
Property tax $ 25,908,220 $ 25,575,669 $ 25,575,669 $ 332,551
Tax increment financing 9,959,562 10,738,108 10,738,108 (778,546)
Other City tax 17,995,431 18,167,857 18,167,857 (172,426)
Licenses and permits 1,503,252 1,827,379 1,904,123 (400,871)
Use of money and property 14,474,768 14,388,998 14,391,312 83,456
Intergovernmental 40,369,620 48,393,574 101,904,967 (61,535,347)
Charges for fees and service 39,175,530 44,184,398 43,907,605 (4,732,075)
Special assessments 113,709 30,000 30,000 83,709
Miscellaneous 8,896,634 7,971,324 11,463,679 (2,567,045)
Total Receipts 158,396,726 171,277,307 228,083,320 (69,686,594)
EXPENDITURES
Public safety 29,268,525 30,100,398 30,851,935 1,583,410
Public works 12,307,869 13,022,573 14,053,891 1,746,022
Health and social services 970,434 1,196,081 1,279,935 309,501
Culture and recreation 12,316,173 12,850,660 13,588,266 1,272,093
Community and economic development 14,432,317 14,373,472 15,695,646 1,263,329
General government 10,013,656 10,214,750 10,582,261 568,605
Debt service 12,165,590 10,779,398 12,233,320 67,730
Capital projects 28,946,802 37,057,261 82,014,175 53,067,373
Business-type activities 54,048,579 61,888,644 90,103,926 36,055,347
Total Expenditures 174,469,945 191,483,237 270,403,355 95,933,410
EXCESS(DEFICIENCY)OF RECEIPTS
OVER(LJNDER)EXPENDITURES (16,073,219) (20,205,930) (42,320,035) 26,246,816
OTHER FINANCING SOURCES,NET 15,661,869 12,989,828 36,769,518 (21,107,649)
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER)EXPENDITURES AND
OTHERFINANCINGUSES (411,350) (7,216,102) (5,550,517) 5,139,167
BALANCE,BEGINNING OF YEAR 80,882,630 37,452,616 82,384,365 -
BALANCE,ENDING OF YEAR $ 80,471,280 $ 30,236,514 $ 76,833,848 $ 5,139,167
See Notes to Required Supplementary Information.
116
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION—BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2020
The budgetary comparison is presented as Required Supplementary Information in accardance 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, 2020, was amended three times during the year to allow the
City to increase function expenditures by $78,920,118 primarily for the carry-forward of unfinished
capital improvement projects. During the year ended June 30, 2020, no function expenses exceeded the
budgeted amount.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Governmental Enterprise
Modified Funds Funds
Budgetary Accrual Accrual/Accrual Modified Accrual
Basis Adjustments Basis Accrual Basis Basis Total
Receipts/Revenue $ 158,396,726 $ (10,090,619) $ 148,306,107 $ 110,144,389 $ 38,161,718 $ 148,306,107
Expenditures/Expenses 174,469,945 (25,286,719) 149,183,226 111,229,453 37,953,773 149,183,226
Deficiency of Receipts/Revenue
Under Ezpenditures/Expenses (16,073,219) 15,196,100 (877,119) (1,085,064) 207,945 (877,119)
Other Financing Sources 15,661,869 661,880 16,323,749 (540,161) 16,863,910 16,323,749
Net (411,350) 15,857,980 15,446,630 (1,625,225) 17,071,855 15,446,630
Balance,Beginning 80,882,630 177,340,350 258,222,980 62,912,469 195,310,511 258,222,980
Balance,Ending $ 80,471,280 $ 193,198,330 $ 273,669,610 $ 61,287,244 $ 212,382,366 $ 273,669,610
117
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
LAST SIX FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability(asset) 0.33194% 0.33329% 0.33490% 0.34275% 0.35135% 0.37035%
City's proportionate share of the net pension $ 19,350 $ 21,091 $ 22,309 $ 21,570 $ 17,358 $ 14,688
liability
City's covered payroll $ 25,423 $ 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 76.11% 84.28% 89.38% 87.69% 72.21% 60.67%
Plan fiduciary net position as a percentage of the 85.45% 83.62% 82.21% 81.82% 85.19% 87.61%
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.
118
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Statutorilyrequiredcontriburion $ 2,460 $ 2,403 $ 2,235 $ 2,229 $ 2,196 $ 2,151 $ 2,164 $ 2,022 $ 2,022 $ 1,573
Contributions in relation to the
statutarily required contribution (2,460) (2,403) (2,235) (2,229) (2,196) (2,151) (2,164) (2,022) (2,�22) (1,573)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
Ciry's covered payroll $ 26,048 $ 25,423 $ 25,024 $ 24,961 $ 24,597 $ 24,039 $ 24,210 $ 23,321 $ 23,676 $ 22,627
Contributions as a percentage of
covered payroll 9.44°/o 9.45% 8.93% 8.93% 8.93% 8.95% 8.94% 8.67% 8.54% 6.95%
119
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION--PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30, 2020
Changes of benefit terms:
Thee are no significant changes in benefit terms.
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.
120
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST SIX FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability(asset) 4.6919% 4.8639% 4.7840% 4.9533% 4.9854% 5.0788%
City's proportionate share of the net pension liability $ 30,775 $ 28,960 $ 28,062 $ 30,971 $ 23,423 $ 18,410
City's coveredpayroll $ 14,203 $ 14,ll8 $ 13,552 $ 13,423 $ 13,052 $ 12,968
City's proportionate share of the net pension liability
as a percentage of its covered payroll 216.68% 205.13% 207.07% 230.73% 179.46% 141.96%
Plan fiduciary net position as a percentage of the 79.94% 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.
121
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
2020 2019 2018 2017 2016 2015 2014 2013 2012 2011
Statutarily required contribution $ 3,632 $ 3,696 $ 3,626 $ 3,S l3 $ 3,727 $ 3,969 $ 3,906 $ 3,310 $ 3,177 $ 2,404
Contributions in relation to the
statutarilyrequiredcontribution (3,632) (3,696) (3,626) (3,513) (3,727) (3,969 3,906 3,310 3,177) (2,404)
Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ -
City's coveredpayroll $ 14,879 $ 14,203 $ 14,118 $ 13,552 $ 13,423 $ 13,052 $ 12,968 $ 12,672 $ 12,831 $ 12,080
Contributions as a percentage of
coveredpayroll 24.41% 26.02% 25.68% 25.92% 27.77% 30.41% 30.12% 26.12% 24.76% 19.90%
122
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION--PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30, 2020
Chan�es of bene at terms:
There were no significant changes of benefit terms.
Changes of assumptions
The 2018 valuation changed postretirement mortality rates were based on the RP-2014 Blue Collor
Healthy Annuitant Table with males set-forward zero years, females set-forward two years and disabled
individuals set-forward three years (male only rates), with generational projection of future mortality
improvement with 50% of Scale BB beginning in 2017.
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 mortaliry.
This resulted in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and ll/12 of the 1994
Group Annuity Mortality Table.
The 2014 valuation phased in the 1994 Group Annuity Mortality Tab1e 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.
123
CITY OF DUBUQUE, IOWA
SCHEDULE OF CHANGES IN
TOTAL OPEB LIABILITY,RELATED RATIOS AND NOTES
LAST THREE FISCAL YEARS
2020 2019 2018
Service Cost $ 288,187 $ 296,597 $ 277,469
Interest Cost 165,496 172,576 172,219
Changes in assumptions (19,982) 85,951 138,371
Changes in experience (242,263) - -
Other Changes (49,950) 2,582 58,589
Benefitpayments (380,158) (452,573) (474,856)
Net change in total OPEB Liability (238,670) 105,133 171,792
Total OPEB liability beginning of year 6,121,366 6,016,233 5,844,441
Total OPEB liability end of year $ 5,882,696 $ 6,121,366 $ 6,016,233
Covered-employee payroll $ 34,543,167 $ 39,626,000 $ 39,782,000
Total OPEB liability as a percentage
of covered-employee payroll 17.03% 15.45% 15.12%
Notes to Schedule of Chan�es in the Total OPEB Liabilitv 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.
124
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125
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 Ciry for
maintenance and improvement of City streets.
Section VIII Housing Fund—This fund is used to account for the operations of federal Section VILI
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.
126
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.
127
CITY OF DUBUQUE,IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2020
Special Revenue Funds
Road
Use Section VIII Employee SpeciaL
Tax Housing Benefits Assessments
ASSETS
Cash and pooled cash inveshnents $ 4,778,396 $ 381,745 $ - $ -
Receivables
Property tax
Delinquent - - 100,588 -
Succeeding year - - 3,033,914 -
Accounts and other - 67,199 - -
Special assessments - - - 407,620
Accrued interest - - - -
Notes - - - -
Intergovernmental 969,042 3,724 - -
Inventories 302,382 - - -
Prepaid items 435 11,980 - -
Restricted cash and pooled cash investments - 308,903 - -
Total Assets $ 6,050,255 $ 773,551 $ 3,134,502 $ 407,620
LiABILiTIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 319,704 $ 111,731 $ - $ -
Accrued payroll 76,481 26,467 - -
Intergovernmentalpayable - 8,141 - -
Due to other funds - - - -
Unearned revenue - 117,685 - -
Total Liabiliries 396,185 264,024 - -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - 3,033,914 -
Special assessments - - - 389,289
Grants - 3,724 - -
Other - - 43,556 -
Total Deferred Inflows of Resources - 3,724 3,077,470 389,289
FUND BALANCES
Nonspendable:
Endowment corpus - - - -
Inventory 302,382 - - -
Prepaid items 435 11,980 - -
Restricted:
Endowments - - - -
Library - - - -
Police - - - -
Veterans - - - -
Capital improvements 5,351,253 - - -
Franchise agreement - - - -
Special assessments - - - 18,331
Iowa Finance Autharity Trust - - - -
Community programs - 593,625 - -
Employee benefits - - 57,032 -
Committed,capital improvements - - - -
Unassigned - (99,802) - -
Total Fund Balances 5,654,070 505,803 57,032 18,331
Total Liabilities,Deferred Inflows of Resources and
Fund Balances $ 6,050,255 $ 773,551 $ 3,134,502 $ 407,620
128
EXHIBIT A-1
Special Revenue Funds Capital Projects Funds
Library Police IFA
Expendable Expendable Veteran's Housing Airport General Sales Tax
Cable TV Gifts Trust Gifts Trust Memorial Trust Construction Construction Construction
$ 495,264 $ 1,154,946 $ 7,749 $ 152,925 $ 374,024 $ (146) $ 699 $ 3,070,492
136,095 - - - - - - -
2,081 3,716 25 - - - 648 9,975
- - - - 861,944 - 34,085 657,518
- - - - - 632,963 546,269 152,219
- - - - - - 599,254 -
21,669 - - - - - 3,847 -
- - - - - 1,262,287 1,344,808 1,207,665
$ 655,109 $ 1,158,662 $ 7,774 $ 152,925 $ 1,235,968 $ 1,895,104 $ 2,529,610 $ 5,097,869
$ 1,165 $ - $ - $ - $ - $ 291,831 $ 726,502 $ 72,339
13,418 1,448 - - - - - -
- - - - - 42,278 414,272 -
14,583 1,448 - - - 334,109 1,140,774 72,339
- - - - - 294,122 47,886 -
- - - - - 294,122 47,886 -
- - - - - - 599,254 -
21,669 - - - - - 3,847 -
- 1,157,214 - - - - - -
- - 7,774 - - - - -
- - - 152,925 - - - -
- - - - - 1,266,873 737,849 1,207,665
618,857 - - - - - - -
- - - - 1,235,968 - - -
- - - - - - - 3,817,865
640,526 1,157,214 7,774 152,925 1,235,968 1,266,873 1,340,950 5,025,530
$ 655,109 $ 1,158,662 $ 7,774 $ 152,925 $ 1,235,968 $ 1,895,104 $ 2,529,610 $ 5,097,869
(Continued)
129
CITY OF DUBUQUE,IOWA
COMBINING BALANCE SHEET EXHIBIT A-1(CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2020
Capital Projects
Funds PermanentFunds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Trust Funds
ASSETS
Cash and pooled cash investments $ 2,168,691 $ - $ - $ 12,584,785
ReceivabLes
Property tax
Delinquent - - - 100,588
Succeeding year - - - 3,033,914
Accounts and other 26,045 - - 229,339
Special assessments - - - 407,620
Accrued interest 6,978 212 58 23,693
Notes - - - 1,553,547
Intergovernmental 1,052,044 - - 3,356,261
Inventories - - - 901,636
Prepaid items 340 - - 38,271
Restricted cash and pooled cash investments - 155,677 18,051 4,297,391
Total Assets $ 3,254,098 $ 155,889 $ 18,109 $ 26,527,045
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 418,269 $ - $ - $ 1,941,541
Accrued payroll - - - 117,814
Intergovernmental payable - - - 8,141
Due to other funds - - - 456,550
Unearned revenue - - - 117,685
Total Liabiliries 418,269 - - 2,641,731
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - - 3,033,914
Special assessments - - - 389,289
Grants 515,173 - - 860,905
Other 314,963 - - 358,519
Total Deferred Inflows of Resources 830,136 - - 4,642,627
FUND BALANCES
Nonspendable:
Endowment corpus - 57,412 12,000 69,412
Inventory - - - 901,636
Prepaid items 340 - - 38,271
Restricted:
Endowments - 98,477 6,109 104,586
Library - - - 1,157,214
Police - - - 7,774
Veterans - - - 152,925
Capital improvements - - - 8,563,640
Franchise agreement - - - 618,857
Special assessments - - - 18,331
Iowa Finance Authoriry Trust - - - 1,235,968
Community programs - - - 593,625
Employee benefits - - - 57,032
Committed,capital improvements 2,005,353 - - 5,823,218
Unassigned - - - (99,802)
Total Fund Balances 2,005,693 155,889 18,109 19,242,687
Total Liabilities,Deferred Inflows of Resources and
Fund Balances $ 3,254,098 $ 155,889 $ 18,109 $ 26,527,045
130
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131
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2020
Special Revenue Funds
Road
Use Section VIII Employee Special
Tax Housing Benefits Assessments
REVENUES
Taxes $ - $ - $ 3,645,629 $ -
Special assessments - - - 69,891
Intergovernmental 7,782,636 5,498,322 - -
Charges for services 211,083 - - -
Investment earnings - 8,257 - 21,506
Contributions - 650 - -
Miscellaneous 38,900 59,808 - 1,255
Total Revenues 8,032,619 5,567,037 3,645,629 92,652
EXPENDITURES
Governmental activities
Current
Public safety - - - -
Public works 6,328,105 - - -
Culture and recrearion - - - -
Community and economic development - 5,707,258 - -
General government 6,849 - 242 -
Debt service
Interest and fiscal charges - - - -
Capital projects 442,418 - - -
Total Expenditures 6,777,372 5,707,258 242 -
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 1,255,247 (140,221) 3,645,387 92,652
OTHER FINANCING SOURCES(USES)
Transfers in 33,682 97,138 - -
Transfers out (462,469) - (3,633,932) (109,439)
Insurancerecovery - - - -
Sale of capital assets - - - -
Total OtherFinancing Sources(Uses) (428,787) 97,138 (3,633,932) (109,439)
NET CHANGE IN FUND BALANCES 826,460 (43,083) 11,455 (16,787)
FLJND BALANCES,BEGINNING 4,827,610 548,886 45,577 35,118
FLJND BALANCES,ENDING $ 5,654,070 $ 505,803 $ 57,032 $ 18,331
132
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 Memarial Trust Construction Construction
$ - $ - $ - $ - $ - $ - $ -
- - - - 106,583 998,895 499,120
750 8,976 - - - 169,259 -
11,710 25,507 176 2,812 - 19,047 42,834
- 460 3,655 8,700 - - 2,684
564,765 98,997 - - 537,161 390 14,292
577,225 133,940 3,831 11,512 643,744 1,187,591 558,930
- - 3,102 - - - -
- 137,140 - 2,029 - - -
570,026 - - - - - -
5,000 - - - - - (15,258)
- - - - - 1,848,826 5,519,810
575,026 137,140 3,102 2,029 - 1,848,826 5,504,552
2,199 (3,200) 729 9,483 643,744 (661,235) (4,945,622)
- - - - 50,000 335,790 2,948,594
- - - - - (34,567) (31,349)
- - - - - - 3,000
- - - - 50,000 301,223 2,920,245
2,199 (3,200) 729 9,483 693,744 (360,012) (2,025,377)
638,327 1,160,414 7,045 143,442 542,224 1,626,885 3,366,327
$ 640,526 $ 1,157,214 $ 7,774 $ 152,925 $ 1,235,968 $ 1,266,873 $ 1,340,950
(Continued)
133
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES, EXHIBIT A-2(CONTINUED)
EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2020
Capital Projects Funds Permanent Funds
Total
Ella Lyons Library Nonmajor
Sales Tax Street Peony Trail Gifts Governmental
Construction Construction Trust Trust Funds
REVENUES
Taxes $ 1,930,466 $ 2,895,699 $ - $ - $ 8,471,794
Special assessments - - - - 69,891
Intergovernmental - 1,180,314 - - 16,065,870
Charges far services - 18,720 - - 408,788
Investment earnings 84,478 37,853 (2,470) 416 252,126
Contributions - - - - 16,149
Miscellaneous 2,637 73,574 - 158 1,391,937
Total Revenues 2,O17,581 4,206,160 (2,470) 574 26,676,555
EXPENDITURES
Governmental activities
Current
Public safety - - - - 3,102
Public works - - - - 6,328,105
Culture and recreation - - - 1,760 140,929
Community and economic development - - - - 5,707,258
General government - - - - 577,1U
Debt service
Interest and fiscal charges 10,980 - - - 722
Capitalprojects 1,617,936 3,413,817 - - 12,842,807
Total Expenditures 1,628,916 3,413,817 - 1,760 25,600,040
EXCESS(DEFICIENCY)OF REVENUES
OVER(LJNDER)EXPENDITURES 388,665 792,343 (2,470) (1,186) 1,076,515
OTHER FINANCING SOURCES(USES)
Transfers in 102,132 85,852 - - 3,653,188
Transfers out (758,092) (674,769) - - (5,704,617)
Insurancerecovery - 52,182 - - 52,182
Sale of capital assets - - - - 3,000
Total Other Financing Sources(Uses) (655,960) (536,735) - - (1,996,247)
NET CHANGE IN FiJND BALANCES (267,295) 255,608 (2,470) (1,186) (919,732)
FLJND BALANCES,BEGINNING 5,292,825 1,750,085 158,359 19,295 20,162,419
FLTND BALANCES,ENDING $ 5,025,530 $ 2,005,693 $ 155,889 $ 18,109 $ 19,242,687
134
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.
135
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF NET POSITION EXHIBIT B-1
NONMAJOR ENTERPRISE FUNDS
JUNE 30,2020
Total Other
Refuse Transit America's Enterprise
Collection System Salt River Project Funds
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 1,246,871 $ 870,152 $ 62,776 $ 4 $ 2,179,803
Receivables
Accounts 424,445 439 - - 424,884
Intergovernmental - 3,093,798 - - 3,093,798
Prepaid items - 12,688 - - 12,688
Inventories - 2,044 - - 2,044
Total Current Assets 1,671,316 3,979,121 62,776 4 5,713,217
NONCURRENT ASSETS
Restricted cash and pooled cash investments - 199,787 - - 199,787
Capital assets
Land - 36,000 - - 36,000
Buildings - 13,366,053 175,458 - 13,541,511
Improvements to other than buildings - 659,598 686,312 - 1,345,910
Machinery and equipment 2,808,292 7,570,600 36,342 - 10,415,234
Accumulated depreciation (2,114,960) (6,158,720) (177,580) - (8,451,260)
Net Capital Assets 693,332 15,473,531 720,532 - 16,887,395
Total Noncurrent Assets 693,332 15,673,318 720,532 - 17,087,182
Total Assets 2,364,648 19,652,439 783,308 4 22,800,399
DEFERRED OUTFLOWS OF
RESOURCES
Pension related deferred outflows 204,091 299,534 - - 503,625
OPEB related deferred outflows 10,384 8,407 - - 18,791
Total Deferred Outflows of Resources 214,475 307,941 - - 522,416
LIABILITIES
CURRENT LIABILITIES
Accounts payable 24,317 1,626,530 - - 1,650,847
Accrued payroll 64,016 84,089 - - 148,105
General obligation bonds payable 5,400 9,268 - - 14,668
Accrued compensated absences 3,414 - - - 3,414
Accrued interest payable 1,980 722 - - 2,702
Total Current Liabilities 99,127 1,720,609 - - 1,819,736
NONCURRENT LIABILITIES
General obligation bonds payable 61,629 289,810 - - 351,439
Accrued compensated absences 213,160 36,193 - - 249,353
Netpensionliability 861,091 1,263,774 - - 2,124,865
Total OPEB liability 235,307 190,488 - - 425,795
Total Noncurrent Liabilities 1,371,187 1,780,265 - - 3,151,452
Total Liabilities 1,470,314 3,500,874 - - 4,971,188
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 150,348 220,659 - - 371,007
OPEB related deferred inflows 13,409 10,855 - - 24,264
Total Deferred Inflows of Resources 163,757 231,514 - - 395,271
NET POSITION
Net investment in capital assets 626,303 15,374,240 720,532 - 16,721,075
Unrestricted 318,749 853,752 62,776 4 1,235,281
Total Net Position $ 945,052 $ 16,227,992 $ 783,308 $ 4 $ 17,956,356
136
CITY OF DUBUQUE,IOWA EXHIBTT B-2
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30,2020
Total Other
Refuse Transit America's Enterprise
Collection System Salt River Project Funds
OPERATING REVENUES
Charges for sales and services $ 4,444,871 $ 364,116 $ 346,753 $ - $ 5,155,740
Other 3,446 36,460 - - 39,906
Total Operating Revenues 4,448,317 400,576 346,753 - 5,195,646
OPERATING EXPENSES
Employee expense 2,805,672 2,436,336 - - 5,242,008
Utilities 21,747 91,001 - - 112,748
Repairs and maintenance 329,703 769,849 940 - 1,100,492
Supplies and services 889,936 463,777 304,977 3,161 1,661,851
Insurance 21,745 43,737 - - 65,482
Depreciation 317,135 814,208 27,639 - 1,158,982
Total Operating Expenses 4,385,938 4,618,908 333,556 3,161 9,341,563
OPERATING INCOME(LOSS) 62,379 (4,218,332) 13,197 (3,161) (4,145,917)
NONOPERATING REVENUES
Intergovernmental - 2,531,111 - - 2,531,111
Investment earnings 27,158 3,059 - - 30,217
Contributions - 84,280 - - 84,280
Interest expense (1,745) 565 - - (1,180)
Gain on disposal of assets 16,500 (130,120) - - (113,620)
NetNonoperatingRevenues 41,913 2,488,895 - - 2,530,808
INCOME(LOSS)BEFORE TRANSFERS 104,292 (1,729,437) 13,197 (3,161) (1,615,109)
CAPITAL CONTRIBUTIONS - 1,524,575 - - 1,524,575
TRANSFERS IN - 1,693,164 - 2,800 1,695,964
CHANGE IN NET POSITION 104,292 1,488,302 13,197 (361) 1,605,430
NET POSITION,BEGINNING 840,760 14,739,690 770,111 365 16,350,926
NET POSITION,ENDING $ 945,052 $ 16,227,992 $ 783,308 $ 4 $ 17,956,356
137
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30,2020
America's TotalOther
Refuse Transit River Enterprise
Collection System Salt Project Funds
CASH FLOWS FROM OPERATING ACTNITIES
Cash received from customers $ 4,020,426 $ 366,262 $ 346,753 $ - $ 4,733,441
Cash payments to suppliers for goods and services (1,261,848) (1,390,499) (305,917) (3,161) (2,961,425)
Cash payments to employees for services (2,749,600) (2,310,549) - - (5,060,149)
Other operating receipts 3,446 36,460 - - 39,906
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 12,424 (3,298,326) 40,836 (3,161) (3,248,227)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 1,693,164 - 2,800 1,695,964
Transfers to other funds - - - - -
Contriburions - 1,608,855 - - 1,608,855
Intergovernmental grant proceeds - 613,900 - - 613,900
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES - 3,915,919 - 2,800 3,918,719
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from issuance of debt - - - - -
Premium on debt issuance - - - - -
Acquisition and construction of capital assets (96,987) (323,130) - - (420,117)
Proceeds from sale of capital assets 16,500 - - - 16,500
Principal Paid (5,222) (9,600) - - (14,822)
Interest paid (2,064) - - - (2,064)
NET CASH PROVIDED BY(USED FOR)CAPITAL AND
RELATED FINANCING ACTNITIES (87,773) (332,730) - - (420,503)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 424,922 3,059 - - 427,981
NET INCREASE(DECREASE)IN CASH AND POOLED
INVESTMENTS 349,573 287,922 40,836 (361) 677,970
CASH AND POOLED INVESTMENTS,BEGINNING 897,298 782,017 21,940 365 1,701,620
CASH AND POOLED INVESTMENTS,ENDING $ 1,246,871 1,069,939 $ 62,776 $ 4 $ 2,379,590
138
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS EXHIBIT B-3
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30,2020
Business-type Activities-Enterprise Funds
America's TotalOther
Refuse River Enterprise
Collection Transit Salt Project Funds
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)
OPERATING ACTIVITIES
Operating income(loss) $ 62,379 $ (4,218,332) $ 13,197 $ (3,161) $ (4,145,917)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 317,135 814,208 27,639 - 1,158,982
Change in assets and liabilities
(Increase)Decrease in receivables (424,445) 2,146 - - (422,299)
Decrease in inventories and prepaid items - (2,563) - - (2,563)
Increase in accounts payable 1,283 (19,572) - - (18,289)
Increase(Decrease)in accrued liabilities (6,253) 23,1 l8 - - 16,865
(Decrease)in net pension liability (59,460) (83,492) - - (142,952)
Decrease in deferred outflows 36,000 52,083 - - 88,083
Increase in deferred inflows 84,609 115,677 - - 200,286
Increase in total OPEB liability 1,176 18,401 - - 19,577
Total Adjustments (49,955) 920,006 27,639 - 897,690
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 12,424 $ (3,298,326) $ 40,836 $ (3,161) $ (3,248,227)
139
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140
INTERNAL SERVICE FUNDS
Internal service funds are used to account far 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.
141
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2020
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 165,283 $ 574,541 $ 14,264
Receivables
Accounts - - -
Accrued interest - - -
Prepaid items - - -
Inventories - 51,319 14,484
Total Current Assets 165,283 625,860 28,748
NONCURRENT ASSETS
Capital assets
Machinery and equipment - 356,590 -
Accumulated depreciation - (263,134) -
Net Capital Assets - 93,456 -
Total Noncurrent Assets - 93,456 -
Total Assets 165,283 719,316 28,748
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 206,807 115,834 -
LIABILITIES
CURRENT LIABILITIES
Accounts payable - 38,333 8,558
Accrued payroll - 32,543 -
Total Current Liabilities - 70,876 8,558
NONCURRENT LIABILITIES
Net pension liability 872,559 488,728 -
Total Noncurrent Liabilities 872,559 488,728 -
Total Liabilities 872,559 559,604 8,558
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows 152,351 85,332 -
NET POSITION
Net investment in capital assets - 93,456 -
Unrestricted (652,820) 96,758 20,190
Total Net Position(Deficit) $ (652,820) $ 190,214 $ 20,190
142
EXHIBIT Gl
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 4,603,574 $ 1,605,767 $ 6,963,429
268,177 - 268,177
14,812 5,166 19,978
- 183,763 183,763
- - 65,803
4,886,563 1,794,696 7,501,150
- - 356,590
- - (263,134)
- - 93,456
- - 93,456
4,886,563 1,794,696 7,594,606
- - 322,641
873,589 499,557 1,420,037
- - 32,543
873,589 499,557 1,452,580
- - 1,361,287
- - 1,361,287
873,589 499,557 2,813,867
- - 237,683
- - 93,456
4,012,974 1,295,139 4,772,241
$ 4,012,974 $ 1,295,139 $ 4,865,697
143
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION(DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30,2020
General Garage Stores/
Service Service Printing
OPERATING REVENUES
Charges for sales and services $ 1,606,347 $ 1,942,010 $ 583,270
Other - 55,543 -
Total Operating Revenues 1,606,347 1,997,553 583,270
OPERATING EXPENSES
Employee expense 1,501,747 941,530 -
Utilities 1 30,810 6,821
Repairs and maintenance - 54,093 -
Supplies and services - 824,259 559,042
Insurance - 16,604 -
Depreciation - 40,868 -
Total Operating Expenses 1,501,748 1,908,164 565,863
OPERATING INCOME(LOSS) 104,599 89,389 17,407
NONOPERATING REVENUES(EXPENSES)
Investment earnings - - -
Gain on disposal of assets - 2,679 -
Net Nonoperating Revenues(Expenses) - 2,679 -
CHANGE IN NET POSITION 104,599 92,068 17,407
NET POSITION(DEFICIT),BEGINNING (757,419) 98,146 2,783
NET POSITION(DEFICIT),ENDING $ (652,820) $ 190,214 $ 20,190
144
EXHIBIT G2
Health Warkers'
Insurance Compensation
Reserve Reserve Total
$ 9,359,270 $ 807,864 $ 14,298,761
137 14,432 70,112
9,359,407 822,296 14,368,873
- - 2,443,277
- - 37,632
- - 54,093
10,259,919 - 11,643,220
- 158,042 174,646
- - 40,868
10,259,919 158,042 14,393,736
(900,512) 664,254 (24,863)
119,990 38,415 158,405
- - 2,679
119,990 38,415 161,084
(780,522) 702,669 136,221
4,793,496 592,470 4,729,476
$ 4,012,974 $ 1,295,139 $ 4,865,697
145
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2020
General Garage Stores/
Service Service Printing
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 1,606,347 $ 1,942,O10 $ 583,270
Cash payments to suppliers for goods and services (1) (950,333) (569,639)
Cash payments to employees far services (1,441,063) (923,368) -
Other operating receipts - 55,543 -
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 165,283 123,852 13,631
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets - 2,679 -
NET CASH(USED FOR)CAPITAL AND
RELATED FiNANCING ACTIVITIES - 2,679 -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received - - -
NET INCREASE(DECREASE)IN CASH AND
POOLED INVESTMENTS 165,283 126,531 13,631
CASH AND POOLED INVESTMENTS,BEGINNING - 448,010 633
CASH AND POOLED INVESTMENTS,ENDING $ 165,283 $ 574,541 $ 14,264
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES
Operaring income $ 104,599 $ 89,389 $ 17,407
Adjustments to reconcile operating income to net
cash provided by(used for)operating activities
Depreciation - 40,868 -
Change in assets and liabilities
(Increase)in receivables - - -
(Increase)Decrease in inventories and prepaid items - 15,173 (4,902)
Increase(Decrease)in accounts payable - (39,740) 1,126
(Decrease)in net pension liability (47,010) (51,155) -
Decrease in deferred outflows 34,407 25,783 -
Increase in deferred inflows 73,287 38,914 -
Increase in accrued liabilities - 4,620 -
Total Adjustments 60,684 34,463 (3,776)
NET CASH PROVIDED BY(USED FOR)OPERATING
ACT�V�T�ES $ 165,283 $ 123,852 $ 13,631
146
EXHIBIT C-3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 9,318,982 $ 807,864 $ 14,258,473
(10,362,276) (865,338) (12,747,587)
- - (2,364,431)
137 14,432 70,ll2
(1,043,157) (43,042) (783,433)
- - 2,679
- - 2,679
120,568 37,736 158,304
(922,589) (5,306) (622,450)
5,526,163 1,611,073 7,585,879
$ 4,603,574 $ 1,605,767 $ 6,963,429
$ (900,512) $ 664,254 $ (24,863)
- - 40,868
(40,288) - (40,288)
- (183,763) (173,492)
(102,357) (523,533) (664,504)
- - (98,165)
- - 60,190
- - 112,201
- - 4,620
(142,645) (707,296) (758,570)
$ (1,043,157) $ (43,042) $ (783,433)
147
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148
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 far
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.
149
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIE5 EXHIBIT D-1
AGENCY FUND
FOR THE YEAR ENDED JUNE 30,2020
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 747,424 $ 200,770 $ 67,916 $ 880,278
Prepaids 12,054 7,552 12,054 7,552
Accounts receivable 50,729 47,633 50,729 47,633
Total Assets $ 810,207 $ 255,955 $ 130,699 $ 935,463
LIABILITIES
Dueto otheragency $ 810,207 $ 255,955 $ 130,699 $ 935,463
Total Liabilities $ 810,207 $ 255,955 $ 130,699 $ 935,463
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 1,012,729 $ 132,987 $ 104,193 $ 1,041,523
Accounts receivable - 10,000 - 10,000
Accrued interest 2,820 3,351 2,820 3,351
Total Assets $ 1,015,549 $ 146,338 $ 107,013 $ 1,054,874
LIABILITIES
Due to other agency $ 1,015,549 $ 146,338 $ 107,013 $ 1,054,874
Total Liabilities $ 1,015,549 $ 146,338 $ 107,013 $ 1,054,874
FLEXSTEEL DECOMISSION FUND
ASSETS
Cash and pooled cash investments $ 965,839 $ 325,343 $ 1,291,182 $ -
Notes receivable 1,700,000 - 1,700,000 -
Total Assets $ 2,665,839 $ 325,343 $ 2,991,182 $ -
LIABILITIES
Due to other agency $ 2,665,839 $ 325,343 $ 2,991,182 $ -
Total Liabilities $ 2,665,839 $ 325,343 $ 2,991,182 $ -
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments $ 2,725,992 $ 659,100 $ 1,463,291 $ 1,921,801
Prepaids 12,054 7,552 12,054 7,552
Accounts receivable 50,729 57,633 50,729 57,633
Notes receivable 1,700,000 - 1,700,000 -
Accrued interest 2,820 3,351 2,820 3,351
Total Assets $ 4,491,595 $ 727,636 $ 3,228,894 $ 1,990,337
LIABILITIES
Due to other agency $ 4,491,595 $ 727,636 $ 3,228,894 $ 1,990,337
Total Liabilities $ 4,491,595 $ 727,636 $ 3,228,894 $ 1,990,337
150
Statistical Section (Unaudited)
June 30, 2020
City of Dubuque, Iowa
151
THIS PAGE IS INTENTIONALLY LEFT BLANK
152
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual financial report presents detailed information
as a context far understanding what the infarmation 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. 154
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 162
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. 166
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. 177
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. 179
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
153
CITY OF DUBUQUE,IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2011 2012 2013 2014 2015
Governmental activities
Net inveshnent in capital assets $ 329,416,245 $ 347,890,769 � 342,046,442 $ 354,732,451 $ 348,173,267
Restricted 23,738,199 26,180,100 23,491,207 21,501,638 22,047,405
Unrestricted (4,891,381) (16,876,988) (8,361,688) (18,151,279) (49,579,334)
Total governmental activities netposition $ 348,263,063 $ 357,193,881 $ 357,175,961 $ 358,082,810 $ 320,641,338
Business-type activities
Net investment in capital assets $ 135,026,753 $ 132,237,734 $ 138,498,777 � 138,842,390 $ 148,487,126
Restricted 893,519 957,802 6,011,848 5,315,519 7,796,668
Unrestricted 2,603,799 10,665,596 (641,384) (593,202) (4,568,933)
Total business-rype activities net position $ 138,524,071 $ 143,861,132 $ 143,869,241 $ 143,564,707 $ 151,714,861
Primary government
Net invesrinent in capital assets $ 464,442,998 $ 480,128,503 $ 480,545,219 $ 493,574,841 $ 496,660,393
Resh-icted 24,631,718 27,137,902 29,503,055 26,817,157 29,844,073
Unrestricted (2,287,582) (6,211,392) (9,003,072) (18,744,481) (54,148,267)
Totalprimarygovernmentnetpositions $ 486,787,134 $ 501,055,013 $ 501,045,202 $ 501,647,517 $ 472,356,199
154
TABLE 1
Year
2016 2017 2018 2019 2020
$ 369,244,904 $ 375,578,520 $ 379,040,697 $ 385,005,220 $ 387,344,725
21,473,309 23,955,112 27,269,997 28,321,603 26,501,434
(47,166,839) (43,921,629) (41,853,174) (36,682,314) (35,985,750)
$ 343,551,374 $ 355,612,003 $ 364,457,520 $ 376,644,509 $ 377,860,409
$ 161,326,743 $ 164,448,390 $ 168,205,523 $ 179,561,228 $ 191,757,112
4,254,907 3,796,752 3,053,616 3,131,716 3,187,364
(7,339,071) 3,876,760 10,696,792 12,617,567 17,437,890
$ 158,242,579 $ 172,121,902 $ 181,955,931 $ 195,310,511 $ 212,382,366
$ 530,571,647 $ 540,026,910 $ 547,246,220 $ 564,566,448 $ 579,101,837
25,728,216 27,751,864 30,323,613 31,453,319 29,688,798
(54,505,910) (40,044,869) (31,156,382) (24,064,747) (18,547,860)
$ 501,793,953 $ 527,733,905 $ 546,413,451 $ 571,955,020 $ 590,242,775
155
CITY OF DUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2011 2012 2013 2014 2015
Expenses
Governmental activities:
Public safety $ 23,759,068 $ 26,326,367 $ 28,292,481 $ 27,578,517 $ 25,525,937
Public works 18,978,423 22,917,747 21,607,536 21,306,882 19,207,837
Health and social services 1,072,347 913,954 716,970 1,055,398 928,968
Culture and recreation 10,911,733 12,749,558 13,647,178 13,696,331 13,002,690
Community and economic development 12,890,841 22,030,950 17,388,720 14,591,257 18,064,831
General government 9,052,704 6,133,983 6,248,483 9,610,084 6,420,173
Interest on long-term debt 3,294,951 3,294,912 4,049,640 3,684,993 3,903,667
Total governmental activities expenses 79,960,067 94,367,471 91,951,008 91,523,462 87,054,103
Business-type activities:
Sewage disposal works 7,899,011 9,718,669 9,375,748 11,481,103 12,019,866
Water utility 6,523,993 7,410,710 6,817,772 8,812,340 7,800,393
Stormwaterutility 2,811,321 2,750,767 3,347,304 3,431,096 4,131,562
Parkingfacilities 4,775,834 3,152,055 3,586,405 3,732,492 3,383,419
America's River Project 180,086 22,787 22,770 33,579 24,000
Refuse collection 2,828,891 3,173,075 3,468,859 3,750,366 3,740,404
Transit system 2,947,958 3,629,750 3,492,095 3,847,320 4,245,823
Salt 671,647 661,395 346,066 56,468 244,691
Total business-type activities expenses 28,638,741 30,519,208 30,457,019 35,144,764 35,590,158
Total primary government expenses $ 108,598,808 $ 124,886,679 $ 122,408,027 $ 126,668,226 $ 122,644,261
Program Revenues
Governmental activities:
Charges for services
Public safety 2,579,573 2,915,562 2,495,737 2,624,455 2,532,114
Publicworks 5,331,667 5,178,439 4,472,479 5,829,293 6,092,356
Culture and recreation 2,108,177 2,321,553 2,488,844 2,321,265 2,547,843
Other activities 2,530,234 2,873,298 3,264,979 3,921,256 3,493,143
Operating grants and contributions 14,204,627 23,013,997 13,995,316 12,784,907 11,992,439
Capital grants and contributions 23,482,866 16,560,811 10,791,945 12,162,649 9,704,043
Total governmental activities program revenues 50,237,144 52,863,660 37,509,300 39,643,825 36,361,938
Business-type activities:
Charges for services
Sewage disposal warks 6,643,974 7,827,281 8,924,785 10,025,673 10,582,662
Water utiliry 5,638,277 6,037,073 6,922,582 7,248,790 7,463,430
Stormwaterutility 2,993,539 3,180,134 3,192,256 3,224,504 3,490,040
Parldngfacilities 2,750,610 2,908,989 2,883,865 2,920,148 3,036,214
America's River Project - - - - -
Refuse collection 3,082,197 3,257,960 3,346,795 3,700,922 3,783,493
Transit system 193,236 278,835 307,314 275,907 397,545
Salt 773,258 665,942 395,000 45,600 232,271
Operating grants and contriburions 2,773,933 1,579,493 2,264,695 1,717,208 1,866,535
Capital grants and contributions 6,536,527 5,323,486 1,240,583 2,920,942 10,020,715
Total business-type activities program revenues 31,385,551 31,059,193 29,477,875 32,079,694 40,872,905
Total primary government program revenues $ 81,622,695 $ 83,922,853 $ 66,987,175 $ 71,723,519 $ 77,234,843
156
TABLE 2
Year
2016 2017 2018 2019 2020
$ 26,851,624 $ 30,020,343 $ 29,482,962 $ 29,637,417 $ 32,079,903
24,323,023 19,608,137 20,393,871 24,835,035 22,667,132
967,936 815,251 883,217 1,442,658 1,677,181
12,993,331 13,653,509 14,323,710 12,916,646 13,576,571
15,464,781 18,096,170 21,109,384 15,837,039 17,848,570
4,101,423 8,982,668 7,573,081 5,944,116 8,821,692
2,963,134 3,467,685 3,129,502 3,387,730 2,929,997
87,665,252 94,643,763 96,895,727 94,000,641 99,601,046
12,817,669 11,326,661 ll,614,347 12,177,352 11,725,889
6,483,229 6,807,217 7,109,421 7,892,423 7,631,411
5,021,523 6,234,015 6,159,039 7,025,525 5,887,171
3,420,296 3,547,856 2,866,510 2,845,911 3,414,851
21,521 22,893 10,143 19,874 3,161
3,968,761 4,208,268 4,244,551 4,215,881 4,387,683
4,274,967 4,237,054 4,722,979 4,533,060 4,748,463
181,617 45,039 119,421 182,092 333,556
36,189,583 36,429,003 36,846,411 38,892,118 38,132,185
$ 123,854,835 $ 131,072,766 $ 133,742,138 $ 132,892,759 $ 137,733,231
2,713,065 2,930,068 2,600,751 2,535,504 2,641,633
5,765,075 5,681,107 6,654,101 7,327,692 6,732,825
2,723,270 2,767,636 2,874,493 2,459,644 2,237,000
3,887,056 3,541,205 5,864,541 3,815,321 5,455,952
15,301,219 15,028,527 21,569,356 23,198,271 14,484,320
18,667,619 13,360,280 7,779,713 11,048,200 15,450,271
49,057,304 43,308,823 47,342,955 50,384,632 47,002,001
12,158,439 12,442,584 12,659,662 12,479,684 12,606,632
8,406,928 8,553,225 8,906,136 8,959,023 9,273,720
3,754,148 4,076,396 4,367,963 4,714,670 5,061,855
3,247,383 3,286,947 3,034,744 3,066,118 2,313,344
1,605 4 4 4 -
3,857,340 4,185,051 4,232,542 4,351,428 4,448,317
463,688 459,258 465,550 512,385 400,576
81,720 86,887 96,273 174,784 346,753
1,648,077 1,700,171 1,648,403 1,917,366 2,967,619
7,607,721 14,160,820 5,705,262 6,215,459 6,410,594
41,227,049 48,951,343 41,116,539 42,390,921 43,829,410
$ 90,284,353 $ 92,260,166 $ 88,459,494 $ 92,775,553 $ 90,831,411
(Continued)
157
CITY OF DUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2011 2012 2013 2014 2015
Nct(Expense)/Revenue
Governmental activities $ (29,722,923) $ (41,503,811) $ (54,441,708) $ (51,879,637) $ (50,692,165)
Business-type activities 2,746,810 539,985 (979,144) (3,065,070) 5,282,747
Total primary government net expense $ (26,976,113) $ (40,963,826) $ (55,420,852) $ (54,944,707) $ (45,409,418)
General Revenues and Other Changes in Net Position
Governmental acriviries:
General Revenues
Property taxes $ 28,249,114 $ 30,816,614 $ 32,668,554 $ 33,264,283 $ 36,277,719
L,ocal option sales tax 7,929,761 8,459,888 8,764,787 8,211,366 8,760,246
Hotel/motel tax 1,826,809 1,903,944 1,953,763 2,006,514 2,623,551
Utility franchise fees 2,488,858 2,272,481 2,568,347 2,609,421 2,828,688
Gaming 13,327,223 8,785,453 8,452,298 7,878,008 7,397,709
Unrestrictedinvestmentearnings 668,363 1,529,149 201,153 777,958 668,134
Gain on sale of capital assets 149,937 1,417,048 907,122 483,782 19,495
Other 622,494 - - - -
Transfers (1,211,263) (4,749,948) (1,092,236) (2,444,846) (7,288,593)
Total governmental activities 54,051,296 50,434,629 54,423,788 52,786,486 51,286,949
Business-type activities:
General Revenues
Unrestricted investment earnings 184,581 206,672 65,321 135,461 185,356
Gain on sale of capital assets 19,337 84,178 384,697 180,229 6,571
Extraordinary item (2,253,036) (243,722) (555,031) - -
Transfers 1,211,263 4,749,948 1,092,236 2,444,846 7,288,593
Total business-type activities (837,855) 4,797,076 987,223 2,760,536 7,480,520
Total primary government $ 53,213,441 $ 55,231,705 $ 55,411,011 $ 55,547,022 $ 58,767,469
Change in Net Position
Governmental activities $ 24,328,373 $ 8,930,818 $ (17,920) $ 906,849 $ 594,784
Business-type activities 1,908,955 5,337,061 8,079 (304,534) 12,763,267
Total primary government $ 26,237,328 $ 14,267,879 $ (9,841) $ 602,315 $ 13,358,051
158
TABLE 2
(continued)
Year
2016 2017 2018 2019 2020
$ (38,607,948) S (51,334,940) $ (49,552,772) $ (43,616,009) $ (52,599,045)
5,037,466 12,522,340 4,270,124 3,494,540 5,697,225
$ (33,570,482) $ (38,812,600) $ (45,282,648) $ (40,121,469) $ (46,901,820)
$ 36,518,506 $ 39,678,473 $ 39,632,246 $ 37,973,888 $ 38,354,691
9,155,411 8,890,046 8,610,948 8,940,109 9,652,332
2,128,042 2,821,745 2,286,469 2,113,273 2,117,506
4,360,107 4,558,847 4,832,958 5,072,350 4,976,472
8,440,161 8,098,324 8,062,251 8,730,986 7,394,294
1,082,165 335,577 688,769 1,858,476 1,857,420
813,492 83,720 309,857 94,980 23,866
(979,900) (1,071,163) (5,423,015) (8,981,064) (10,561,636)
61,517,984 63,395,569 59,000,483 55,802,998 53,814,945
407,528 231,746 268,283 798,497 796,494
102,824 54,074 4,680 80,479 16,500
979,900 1,071,163 5,423,015 8,981,064 10,561,636
1,490,252 1,356,983 5,695,978 9,860,040 11,374,630
$ 63,008,236 S 64,752,552 $ 64,696,461 $ 65,663,038 $ 65,189,575
$ 22,910,036 $ 12,060,629 $ 9,447,7ll $ 12,186,989 $ 1,215,900
6,527,718 13,879,323 9,966,102 13,354,580 17,071,855
$ 29,437,754 $ 25,939,952 $ 19,413,813 $ 25,541,569 $ 18,287,755
159
CITY OF DUBUQUE,IOWA
FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
20ll 2012 2013 2014 2015
General Fund
Nonspendable $ 868,631 $ 5,613,359 $ 6,646,278 $ 6,549,063 $ 6,082,043
Restricted - - - - -
Assigned 8,904,490 5,549,803 3,434,440 1,904,805 647,772
Unassigned 6,139,306 9,371,016 8,806,171 7,356,066 8,693,524
Total general fund $ 15,912,427 $ 20,534,178 $ 18,886,889 $ 15,809,934 $ 15,423,339
All Other Governmental Funds
Nonspendable $ 10,320,305 $ 10,975,468 $ 9,092,520 $ 8,640,780 $ 1,183,423
Restricted 18,010,570 31,362,126 30,738,046 23,620,615 30,496,183
Committed 5,203,472 5,843,671 10,827,172 10,548,592 12,298,896
Unassigned (377,363) (429,344) - - -
Total all other governmental funds $ 33,156,984 $ 47,751,921 $ 50,657,738 $ 42,809,987 $ 43,978,502
160
TABLE 3
Year
2016 2017 2018 2019 2020
$ 6,049,052 $ 5,585,672 $ 5,414,922 $ 5,369,478 $ 5,145,558
- 2,208 - 229,995 219,741
1,015,935 1,590,065 1,267,250 1,438,616 1,396,196
10,908,497 12,582,596 15,193,241 19,276,479 20,128,223
$ 17,973,484 $ 19,760,541 $ 21,875,413 $ 26,314,568 $ 26,889,718
$ 553,292 $ 944,856 $ 415,271 $ 406,813 $ 1,030,515
27,450,187 28,103,397 30,347,598 34,367,024 30,247,351
7,635,502 6,592,154 4,660,158 3,009,111 5,823,218
- - (2,021,937) (1,185,047) (2,703,558)
$ 35,638,981 $ 35,640,407 $ 33,401,090 $ 36,597,901 $ 34,397,526
161
CITY OF DUBUQUE,IOWA
CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2011 2012 2013 2014 2015
Revenues
Taxes $ 40,428,894 $ 43,443,669 $ 45,440,973 $ 46,034,361 $ 50,490,204
Specialassessments 232,535 596,138 175,486 154,692 85,501
Licenses and permits 1,170,922 1,570,022 1,271,771 1,136,941 1,198,420
Intergovernmental 26,171,082 37,574,783 26,580,831 23,050,052 20,828,524
Charges for services 8,723,086 9,296,329 8,952,179 10,264,257 10,711,243
Fines and forfeits 454,ll7 525,389 484,128 455,219 362,661
Investment earnings 654,587 1,511,437 180,016 756,809 668,134
Contributions 1,297,621 1,578,376 370,154 678,561 789,268
Gaming 13,327,223 8,785,453 8,452,298 7,878,008 7,397,709
Miscellaneous 2,075,262 1,319,558 1,315,915 1,705,275 1,466,542
Total revenues 94,535,329 106,201,154 93,223,751 92,114,175 93,998,206
Expenditures
Current
Public safety 23,950,386 24,476,772 26,506,714 27,644,190 27,570,773
Public works 14,429,415 12,385,929 13,416,108 13,942,772 11,200,427
Health and social services 1,040,114 828,837 680,466 1,049,194 939,172
Culture and recreation 11,279,951 10,873,474 1],218,O19 12,351,497 12,300,454
Community and economic development 12,361,176 22,237,140 18,678,496 14,420,980 16,418,909
Generalgovernment 7,686,929 6,335,947 5,035,108 5,898,293 5,977,605
Debt service
Principal 2,820,371 3,224,680 3,182,240 4,595,808 4,910,735
Interest 3,321,157 3,220,546 3,991,115 3,650,694 3,577,829
Capitalprojects 15,102,893 23,459,891 16,636,698 18,779,651 14,829,037
Total expenditures 91,992,392 107,043,216 99,344,964 102,333,079 97,724,941
Excess(deficiency)ofrevenues over
(under)expenditures 2,542,937 (842,062) (6,121,213) (10,218,904) (3,726,735)
Other Financing Sources(Uses)
Issuance ofbonds 6,996,722 27,215,363 6,577,268 - 11,137,321
Discount on bonds (39,547) (71,689) - - 72,852
Premiums on bonds 1,642 123,990 - - -
Issuance of refunding bonds 705,000 - 4,949,148 - -
Payment to refunded bonds escrow agent (690,000) - (4,949,148) - -
Transfers in 15,850,523 8,773,387 15,295,630 15,862,516 18,073,553
Transfers out (18,961,892) (18,336,603) (16,981,203) (17,294,762) (25,241,795)
Insurance recovery 628,482 132,425 49,209 59,796 106,288
Sale of capital assets 753,153 2,221,877 2,438,837 666,648 360,436
Total other financing sources(uses) 5,244,083 20,058,750 7,379,741 (705,802) 4,508,655
Net change in fund balances $ 7,787,020 $ 19,216,688 $ 1,258,528 $ (10,924,706) $ 781,920
Debt service as a percentage of noncapital
expenditures 8.49% 7.65% 8.57% 9.51% 9.97%
162
TABLE 4
Year
2016 2017 2018 2019 2020
$ 51,580,084 $ 55,949,ll1 $ 55,362,621 $ 54,101,901 $ 54,818,674
111,193 261,233 122,968 113,178 76,394
1,480,643 1,505,564 1,642,498 1,619,892 1,497,086
29,302,824 26,314,297 27,229,554 31,359,695 28,618,060
10,919,854 10,816,025 11,559,017 12,476,036 10,994,598
421,925 484,687 407,322 404,400 365,458
1,082,165 335,577 688,769 1,701,846 1,699,015
],440,405 689,237 816,922 1,343,916 1,163,721
8,440,161 8,098,324 8,062,251 8,708,702 7,394,294
1,367,875 1,811,681 1,589,072 1,526,804 3,517,089
106,147,129 106,265,736 107,480,994 ll 3,356,370 ll 0,144,389
28,036,551 29,155,128 28,581,466 28,807,920 29,518,515
14,597,823 11,728,716 11,687,309 12,851,393 11,838,812
1,015,987 868,280 854,045 1,046,184 1,340,544
11,909,029 12,397,294 12,776,591 ]3,037,048 13,199,378
13,473,413 16,474,553 20,350,200 15,730,191 16,685,406
6,436,114 7,287,586 6,755,479 6,571,094 7,447,439
10,302,412 17,615,698 7,989,850 5,509,605 7,065,499
3,707,268 3,579,807 3,274,200 3,320,911 3,044,421
31,504,581 16,260,851 17,402,848 20,145,054 21,089,439
120,983,178 ll 5,367,913 109,671,988 107,019,400 ll 1,229,453
(14,836,049) (9,102,177) (2,190,994) 6,336,970 (1,085,064)
3,933,882 230,000 ll0,000 2,883,875 1,372,907
292,521 319,384 16,915 81,693 62,182
- 11,023,700 1,778,325 - -
4,650,000 - - - _
17,397,007 18,814,586 18,889,096 17,025,952 17,146,200
(18,376,907) (19,917,219) (20,980,391) (18,876,402) (19,858,343)
86,359 41,345 98,058 87,843 71,604
1,063,814 378,861 2,154,546 96,035 665,289
9,046,676 10,890,657 2,066,549 1,298,996 (540,161)
$ (5,789,373) $ 1,788,480 $ (124,445) $ 7,635,966 $ (1,625,225)
15.17% 20.94% 11.96% 9.84% 11A1%
163
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
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 6819 ll.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 ll.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 10.58844
2018 2020 2,825,245 4,185,444 7,640 2,825,245 4,185,444 67.50 ]0.33144
Source:Dubuque County Assessor's and Auditar's Offices
164
CITY OF DUBUQUE,IOWA
PROPERTY TAX RATES TABLE 6
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER$1,000 ASSESSED VALUE
Dubuque Board of Ratio of
Levy Fiscal Dubuque School Education and Area 1 Dubuque Dubuque
Year Year City District Independents Voa Tech County Total Ciry to Total
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 3432049 31.42
2012 2014 11.02586 14.60281 0.75274 0.90455 6.43124 33.71720 32.70
2013 2015 ll.02588 13.99630 0.66355 0.90807 6.43124 33.02504 3339
2014 2016 11.02590 14.05629 0.63899 0.91036 6.38779 33.01933 3339
2015 2017 ll.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
2018 2020 10.33144 14.71233 0.64911 1.03168 5.94098 32.66554 31.63
Separate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
Year Year General Transit Insurance Benefits Service Total
2009 20ll $ 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 233093 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 011261 11.02590
2015 2017 8.10000 0.49739 0.14963 2.30637 011400 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
2018 2020 8.10000 0.61307 0.13974 138492 0.09371 10.33144
Source:Dubuque County Auditor's Office.
165
CITY OF DUBUQUE,IOWA
PRINCIPAL PROPERTY TAXPAYERS TABLE 7
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2020 2011
Percentage of Percentage of
Total City Total Ciry
Taxable Taxable Taxable Taxable
Taxpayer Value Rank Value Value Rank Value
Peninsula Gaming Company LLC $ 63,779 1 2.26 % $ 56,784 1 2.63 %
Kennedy Mall Inc. 38,960 2 138 31,133 2 1.44
GRDT Investments LLC(Queck) 31,301 3 L ll 19,157 3 0.89
ITC Midwest LLC 28,451 4 1.01
Progressive Proccessing LLC
(Hormel) 25,380 5 0.90
Walter Development LLC 25,166 6 0.89
MAR Holdings LLC(Medical Assoc.) 21,343 7 0.76 16,884 5 0.78
Nordstrom,Inc. 14,800 8 0.52 14,440 6 0.67
Flexsteel Industries,Inc. 14,792 9 0.52
Platinum Holdings LLC 13,500 10 0.48 11,179 7 0.52
Lexington Dubuque LLC 9,844 10 0.46
Otto A LLC 17,500 4 0.81
Asbury Dubuque LLC 9,925 9 0.46
Minglewood Limiited Partnership 9,948 8 0.46
$ 277,472 9.83 % $ 196,794 9.12 %
Source: Dubuque Counry Auditor's Office
166
CITY OF DUBUQUE,IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS TABLE 8
(IN THOUSANDS OF DOLLARS)
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
2011 2010 $ 19,906 $ 19,793 99.4 % $ 13 $ 19,806 99.5 % $ 276 1.39 %
2012 20ll 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 24,973 100.0 288 115
2017 2016 26,435 26,318 99.6 2 26,320 99.6 354 134
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
2020 2019 26,360 26,106 99.0 1 26,107 99.0 1,096 416
(1)Excludes tax increment levy.
(2)Includes taxes collected in June by the County but not received by the City until July.
167
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business-
General Tax Increment Tax Increment General
Fiscal Obligation Financing Financing Other Loans Obligation
Year Bonds Bonds Notes Payable Bonds
2011 $ 32,561,048 $ 23,037,222 $ 1,931,348 $ 282,857 $ 25,254,652
2012 53,087,811 22,258,283 1,767,664 4,735,714 35,108,003
2013 56,517,165 21,920,537 1,235,903 5,638,871 34,921,131
2014 52,568,648 21,556,435 1,030,036 5,541,428 32,738,862
2015 59,614,941 21,165,946 811,608 5,444,285 45,868,394
2016 58,869,812 20,764,818 625,429 5,347,142 46,806,473
2017 53,800,719 20,333,690 451,763 4,650,000 44,487,023
2018 48,833,498 19,867,562 255,881 4,067,700 41,979,910
2019 46,917,828 19,366,434 176,054 3,984,111 39,246,002
2020 41,985,513 18,825,306 91,860 3,899,294 36,220,856
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
168
TABLE 9
Type Activities
Capital Other Total Percentage of
Loan Revenue Loans Primary Personal Per
Notes Bonds Payable Government Income(1) Capita(1)
$ 33,195,408 $ 6,777,793 $ 2,252,109 $ 125,292,437 5.1 °/a $ 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
111,655,588 33,097,700 3,152,331 257,596,051 8.4 4,446
ll6,965,647 32,706,267 2,152,331 252,847,074 * 4,368
169
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING TABLE 10
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
Percentage of Percentage of
General Taxable Taxable Assessed Assessed
Fiscal Obligation Value of Value of Value of Value of Per
Year Bonds Property Property Property Property Capita
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 2,686,813 338 3,931,498 231 1,558
2019 86,164 2,765,470 3.12 4,141,732 2.08 1,487
2020 78,206 2,825,245 2.77 4,185,444 1.87 1,351
*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.
170
CITY OF DUBUQUE,IOWA
DIRECT AND OVERLAPPING DEBT TABLE 11
AS OF JUNE 30,2020
Net General Tax Tax
Obligation Increment Increment Sales Tax Percentage Amount
Bonded Debt Financing Financing Revenue Loans Applicable Applicable to
Jurisdiction Outstanding Bonds(1) Notes Bonds Payable to City Government
Direct,City of Dubuque,Iowa $ 76,664,999 $ 18,985,000 $ 91,860 $ - $ 3,899,295 100.00 % $ 99,641,154
Overlapping:
Dubuque County 20,405,000 - - - 205,561 73.85 % 15,220,899
Dubuque Community School District - - - - - 70.57 % -
Northeast Iowa Community College 13,340,000 - - - 18,015,000 53.64 % 16,818,822
TotalOverlapping 33,745,000 - - - 18,220,561 32,039,721
Total $ 110,409,999 $ 18,985,000 $ 91,860 $ - $ 22,119,856 $ 131,680,875
Source: Dubuque County Auditor,Dubuque Community School District and Northeast Iowa Community College
(1)Excludes sales tax revenue bonds.
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.
171
CITY OF DUBUQUE,IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2011 2012 2013 2014
Debit limit $ 174,333 $ 177,668 $ 181,668 $ 183,621
Total net debt
applicable to limit 109,636 142,551 144,118 131,289
Legal debit margin $ 64,697 $ 35,117 $ 37,550 $ 52,332
Total net debt
applicable to the debt
limit as a percentage
of debt limit 62.89% 80.23°/a 79.33% 71.50%
172
TABLE 12
2015 2016 2017 2018 2019 2020
$ 193,114 $ 196,031 $ 207,174 $ 209,049 $ 221,513 $ 239,298
154,643 152,386 141,076 124,926 117,223 109,021
$ 38,471 $ 43,645 $ 66,098 $ 84,123 $ 104,290 $ 130,277
80.08% 77.74% 68.10% 59.76% 52.92% 45.56%
Legal Debt Margin Calculation for Fiscal Year 2020
Estimated actual value $ 4,785,964,957
Debt limit- 5% of total actual valuation $ 239,298,248
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease) (109,020,970)
Legal debt margin $ 130,277,278
173
CITY OF DUBUQUE,IOWA
REVENUE DEBT COVERAGE TABLE 13
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Gross Operating Net Revenue Current Fiscal Year's
Fiscal Revenues Expenses Available For Debt Service Requirements Coverage
Year (1) (2) Debt Service Principal Interest Total (3)
WATER UTILITY
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 2ll 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 S.11
2019 9,160 5,726 3,434 505 345 850 4.04
2020 9,497 5,599 3,898 1,049 371 1,420 2.75
STORMWATER UTILITY
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,ll2 363 283 646 3.27
2019 5,062 3,229 1,833 343 273 616 2.98
2020 5,303 1,964 3,339 1,503 7ll 2,214 1.51
SEWAGE DISPOSAL WORKS
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
2020 12,777 6,645 6,131 2,946 1,362 4,308 1.42
(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.
174
CITY OF DUBUQUE,IOWA
WATER AND SEWER RECEIPT HISTORY TABLE 14
LAST TEN FISCAL YEARS
Water Sewer Gallons
Fiscal Year Revenue Revenue Billed
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
2020 8,958,162 12,395,751 1,738,198,948
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 2021 2020 2019 2018 2017 2016 2015 2014
First 22,440 @ $ 0.00512 $ 0.00512 $ 0.00488 $ 0.00474 $ 0.00447 $ 0.00406 $ 0.00387 $ 0.00355
Next 89,760 @ 0.00419 0.00419 0.00399 0.00387 0.00365 0.00332 0.00316 0.00290
Next 261,800 @ 0.00391 0.00391 0.00372 0.00361 0.00340 0.00309 0.00294 0.00270
Next 374,000 @ 0.00345 0.00345 0.00329 0.00280 0.00301 0.00274 0.00261 0.00239
Excess @ 0.00302 0.00302 0.00288 0.00280 0.00264 0.00240 0.00229 0.00210
175
CITY OF DUBUQUE,IOWA
WATER METERS BY RATE CLASS TABLE 15
LAST TEN FISCAL YEARS
Fiscal Year Residential Commercial Industrial Government Total
2011 20,3 3 8 1,904 79 51 22,3 72
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 ll5 22,715
2019 20,523 2,148 80 147 22,898
2020 21,886 1,941 69 138 24,034
176
CITY OF DUBUQUE,IOWA
LARGEST WATER AND SEWER CUSTOMERS TABLE 16
FISCAL YEAR 2020
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot Inc#155296 $ 390,478 1 3.50 %
Prairie Farms Dairy Inc 218,443 2 1.96
Hormel Foods Corporation* 163,328 3 1.46 $ 368,486 1 2.97 %
Hormel Foods Corporation* 157,032 4 1.41 353,173 2 2.85
Alpine Park Community 47,996 5 0.43 96,599 3 0.78
Finley Hospital 47,717 6 0.43 73,714 6 0.59
Stonehill Nursing Home 45,4ll 7 0.41 83,082 4 0.67
Yes Companies Exp Fred,LLC 41,322 8 0.37 80,595 5 0.65
APC,Inc. 40,960 9 037
Georgia Pacific 38,867 10 0.35 61,002 7 0.49
IADU Table Mound MHP LLC 60,801 8 0.49
Grand Harbor Resor&Waterpark 52,534 9 0.42
Ronsan Enterprises Inc/Days Inn 42,670 10 0.34
Total Receipts $ 11,168,595 $ 12,395,751
*Same company,separate accounts.Previously combined several accounts under same business,now listed separately.
177
CITY OF DUBUQUE,IOWA
SALES TAX INCREMENT BONDS TABLE 17
FISCAL YEAR ENDING JUNE 30,2020
Estimated Second Lien Remaining
Sales Tax Senior Lien Remaining Series 2014 Revenues
Increment Series 2015A Revenues After Net Debt After Second
Fiscal Revenue Net Debt Service Senior Lien Service Lien Debt
Year Receipts* (1) Debt Service (2) Service
2015 * $ 2,037,489 $ - $ 2,037,489 $ - $ 2,037,489
2016 * 2,532,846 - 2,532,846 - 2,532,846
2017 * 3,945,134 - 3,945,134 (323,100) 3,622,034
2018 * 3,654,915 (762,650) 2,892,265 (323,100) 2,569,165
2019 * 4,207,297 (762,650) 3,444,647 (323,100) 3,121,547
2020 * 4,709,559 (762,650) 3,946,909 (323,100) 3,623,809
2021 5,574,673 (762,650) 4,812,023 (323,100) 4,488,923
2022 6,380,938 (762,650) 5,618,288 (323,100) 5,295,188
2023 6,866,198 (2,767,650) 4,098,548 (438,100) 3,660,448
2024 6,956,351 (2,771,000) 4,185,351 (1,393,500) 2,791,851
2025 6,957,401 (2,768,969) 4,188,432 (1,400,500) 2,787,932
2026 6,952,046 (2,771,031) 4,181,015 (1,344,250) 2,836,765
2027 6,952,532 (2,768,719) 4,183,813 (1,363,000) 2,820,813
2028 6,947,494 (2,768,394) 4,179,100 (1,365,000) 2,814,100
2029 6,723,750 (2,767,300) 3,956,450 (1,365,000) 2,591,450
2030 6,250,000 (2,768,800) 3,481,200 - 3,481,200
2031 4,467,912 (2,766,400) 1,701,512 - 1,701,512
2032 2,217,912 - 2,217,912 - 2,217,912
2033 2,250,000 - 2,250,000 - 2,250,000
* Actual receipts.
(1)Net of capitalized interest and the debt service reserve fund.
(2)Net of capitalized interest.
178
CITY OF DUBUQUE,IOWA
DEMOGRAPffiC AND ECONOMIC STATISTiCS TABLE 18
LAST TEN CALENDAR YEARS
Per Capita Public
Personal Median School Unemployment
Personal Income Age Enrollment Rate
Year Population Income (1) (2) (3) (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 3,049,782,476 52,636 38 10,459 2.2
2020 57,882 * * 38 10,489 8.7
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.
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CITY OF DUBUQUE,IOWA
PRINCIPAL EMPLOYERS TABLE 19
CURRENT YEAR AND NINE YEARS AGO
2020 2011
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 4.88 % 1,946 2 3.58 %
Dubuque Community Schools 1,957 2 3.67 2,065 1 3.80
Mercy One 1,410 3 2.65 1,324 3 2.44
Medical Associates 1,061 4 1.99 999 5 1.84
Unity Point Health-Finley Hospital 975 5 1.83 920 6 1.69
Andersen Windows 750 6 1.41 550 9 1.01
City of Dubuque 737 7 1.38 666 7 1.26
Sedgwick 725 8 136
Cottingham&Butler 715 9 1.34
Dubuque Bank&Trust and
Heartland Financial USA, 600 10 1.13
IBM 1,300 4 2.39
Holy Family Catholic Schools 575 8 1.06
Prudential Retirement 550 9 1.01
Dubuque Racing Association 413 10 0.76
11,530 21.63 % 11,308 20.86 %
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
Labar Statistics.
(2)Located just outside Ciry Limits.
181
CITY OF DUBUQUE,IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2011 2012 2013 2014
Public Safety
Emergency Communications 13.00 13.00 13.00 13.00
Fire 90.00 90.00 90.00 90.00
Police 11334 ll4.25 ll 5.00 115.08
Building Services 9.00 9.00 9.00 9.24
Public Works
Public Works 87.42 87.42 86.17 86.42
Engineering 27.00 27.00 29.00 29.00
Health&Social Services
Health Services 4.00 4.00 4.00 4.00
Human Rights 3.00 4.00 5.00 5.00
Cultural and Recreation
Civic Center 0.15 0.15 0.15 0.15
Library 18.00 18.00 19.00 19.00
Park 22.50 23.50 23.50 23.50
Recreation 8.93 9.93 9.93 9.93
Community&Economic Development
Community/Economic Dev 3.00 3.00 3.00 4.00
Housing Services 22.25 23.00 25.80 27.00
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 14.00 15.00 15.00
Finance 14.00 14.00 14.00 14.08
Legal 5.00 5.00 5.00 5.00
Information Services 7.00 7.00 7.50 8.00
Business Type
Water 25.00 25.00 25.00 26.00
Water&Resource Recovery Center 18.00 18.00 18.00 18.00
Parking 9.00 9.00 9.00 9.00
Transit 7.00 6.00 6.00 6.32
Total 546.59 549.25 557.05 561.72
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.
182
TABLE 20
2015 2016 2017 2018 2019 2020
13.00 13.00 14.00 14.00 14.00 15.00
90.00 90.00 90.00 90.00 90.00 91.00
115.88 116.00 116.00 ll 6.00 117.00 ll 8.00
11.66 12.00 12.00 12.00 11.00 11.00
86.42 86.42 86.42 86.42 87.42 87.42
29.00 30.00 30.00 26.06 26.00 27.00
4.00 4.00 4.00 4.00 4.00 5.00
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 22.50 22.50 22.50 22.50
10.93 11.93 11.93 11.93 11.93 11.93
4.00 2.00 2.00 3.00 3.00 3.00
26.00 21.00 25.00 25.00 23.52 27.00
8.00 8.00 8.00 8.00 8.00 8.00
12.00 12.00 12.00 12.00 12.00 12.00
2.00 2.00 2.00 2.00 2.00 2.00
3.00 3.00 3.00 3.00 3.00 3.00
16.00 16.00 16.00 17.00 17.50 15.50
14.8 8 15.00 15.00 15.00 14.0 0 19.00
5.00 5.00 5.00 4.00 4.00 4.00
8.00 8.00 8.00 8.00 8.00 8.00
26.00 25.00 25.00 25.00 24.00 25.00
18.00 17.00 17.00 17.00 15.00 15.00
9.00 9.00 8.00 7.00 - -
8.00 13.00 13.00 14.00 20.00 23.00
568.42 567.00 570.00 567.06 562.02 577.50
183
CITY OF DUBUQUE,IOWA
OPERATING INDICATORS BY
FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal-
2011 2012 2013 2014
Public Safety
Police
Physical arrests 6,350 6,319 6,106 5,532
Traffic violations 12,289 11,836 12,089 8,959
Parking violations 35,799 34,910 35,516 36,768
Fire
Number of calls answered 4,884 5,307 4,792 5,165
Inspecrionsconducted 555 589 512 471
Sewer
Sewage system
Daily average treatment in gallons 8,132,000 7,817,000 10,987,000 7,091,000
Maximum daily capacity of treatment plant in gallons 23,240,000 23,240,000 23,240,000 24,500,000
Water systems
Daily average consumption in gallons 7,636,000 7,226,000 6,953,000 7,235,000
Maximum daily capacity of plant in gallons 18,000,000 18,000,000 18,000,000 18,000,000
Refuse(Municipal Collection)
Tonnage 10,660 ll,180 10,535 10,311
Sources: Various Ciry Departments.
Statistics updated for fiscal year 2017
184
TABLE 21
Year
2015 2016 2017 2018 2019 2020
3,767 3,397 3,238 3,519 3,403 2,830
7,354 9,058 9,063 9,415 8,369 7,156
37,635 38,880 33,953 32,857 25,685 18,044
5,603 5,750 5,990 5,949 6,058 6,304
791 993 1,649 1,675 1,232 1,260
7,237,000 7,016,000 7,377,000 7,900,000 7,930,000 8,730,000
24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000
6,956,000 7,068,184 7,200,000 6,917,000 6,133,000 6,210,000
18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 18,000,000
10,690 11,098 11,284 11,481 11,569 12,212
185
CITY OF DUBUQUE,IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
2011 2012 2013 2014
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) 325 328 329 331
Streetlights(1) 1,931 2,081 2,084 2,110
Health and social services
Hospital 2 2 2 2
Number ofpatient beds 389 389 389 389
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 48 51 51 51
Acreage 901 1,001 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) 300 304 304 307
Miles of storm sewers(1) 150 155 141 144
Number of treatment plants 1 1 1 1
Number of service connectors 21,702 22,393 22,428 22,888
Water systems
Miles of water mains 319 320 321 315
Number of service connectors 22,092 22,161 22,536 22,702
Number of city owned fire hydrants 2,854 2,863 2,879 2,336
Sources: Various City Departments.
(1)City GIS System
186
TABLE 22
2015 2016 2017 2018 2019 2020
1 1 1 1 1 1
22 22 22 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
333 332 336 334 340 331
2,161 2,162 2,184 2,312 2,436 2,489
2 2 2 2 2 2
373 373 373 373 373 373
1 1 1 1 1 1
1 1 1 1 1 1
53 53 53 53 53 53
974 974 974 974 974 985
1 1 1 1 1 1
2 2 2 2 2 2
11 11 11 11 10 10
1 1 1 1 1 1
20 20 20 20 16 16
320 322 326 321 332 333
145 147 152 156 158 151
1 1 1 1 1 1
22,928 23,ll9 23,343 23,423 23,488 23,601
318 329 337 370 410 325
22,787 22,970 23,443 23,546 23,605 23,695
2,346 2,380 2,450 2,973 2,539 2,553
187
CITY OF DUBUQUE,IOWA
RETAIL SALES TABLE 23
LAST TEN CALENDAR YEARS
Taxable Number of
Year Retail Sales Businesses
20ll $ 1,014,284,468 2,009
2012 1,060,222,499 1,993
2013 1,057,837,212 2,008
2014 1,240,664,593 3,337
2015 1,305,893,119 3,347
2016 1,316,561,626 2,997
2017 1,324,993,666 2,971
2018 1,323,052,623 2,970
2019 1,353,208,250 3,353
2020 * *
Data Sources:
Iowa Department of Revenue
* Unavailable at report date
188
Compliance Section
June 30, 2020
City of Dubuque, Iowa
189
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190
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 GovernmentAuditinq Standards
To the Honorable Mayor and
Members of the City Council
City of Dubuque, lowa
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in GovernmentAuditing Standards,
issued by the Comptroller General of the United States,the financial statements of the governmental
activities,the business-type activities,the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of Dubuque, lowa, (City) as of and for
the year ended June 30, 2020, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements, and have issued our report thereon dated January 15,
2021.
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 GovernmentAuditing
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 GovernmentAuditing 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) as a basis for designing 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.
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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 2020-001 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 financial statements. 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 GovernmentAuditing 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, 2020 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 GovernmentAuditing Standards in considering the City's internal control and
compliance. Accordingly,this communication is not suitable for any other purpose.
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Dubuque, lowa
January 15, 2021
192
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, lowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque, lowa'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, 2020.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 GovernmentAuditing 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 types of 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 opinions on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
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Opinion on Each Major Federal Program
In our opinion,the City complied, in all material respects, with the types of compliance requirements
referred to above that could have direct and material effect on each of its major federal programs for
the year ended June 30, 2020.
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.
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 of a federal program will not be prevented, or detected and corrected, on a timely basis.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.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of the 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.
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January 15, 2021
194
City of Dubuque, lowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2020
Pass-through
Federal Entity Amounts Passed-
Federal Grantor/Pass-Through CFDA Identifying Through to
Grantor/Program or Cluster Title Number Number Expenditures Subrecipients
U.S.Department of A�riculture
Direct program
Soil and Water Conservation 10.902 $ 71,799 $ -
Environmental Quality Incentives Program 10.912 15,094
Conservation Stewardship Program 10.924 2,594 -
Total U.S.Department of Agriculture 89,487 -
U.S.Department of Housin�and Urban Development
Direct program
CDBG-Entitlement Grants Cluster
Community Development Block
Grants/Entitlement Grants 14.218 49,237 -
Community Development Block
Grants/Entitlement Grants 14.218 251,317 -
Community Development Block
Grants/Entitlement Grants 14.218 312,448
Community Development Block
Grants/Entitlement Grants 14.218 846,560 115,880
COVID-19-Community Development Block
Grants/Entitlement Grants 14.218 172,900 -
Total CDBG-Entitlement Grants Cluster 1,632,462 115,880
Continuum of Care Program 14.267 84,739 -
Pass-through program from
lowa Economic Development Authority
CDBG-Disaster Recovery Grants-Pub.L.No.113-2 Cluster
National Resiliency Disaster Recovery Competition 14.272 B-13-DS-19-001 9,680,113 -
Direct program
Section 8 Project-Based Cluster
Lower Income Housing Assistance Program-
Section 8 Moderate Rehabilitation 14.856 92,080 -
Housing Voucher Cluster
Section 8 Housing Choice Vouchers 14.871 5,343,226 -
Section 8 Housing Choice Vouchers 14.871 66,740 -
Total Housing Voucher Cluster 5,409,966 -
Lead-Based Paint Hazard Controlin
Privately-Owned Housing 14.900 545,198 -
Total U.S.Department of Housing and Urban Development 17,444,558 115,880
U.S.Department of Interior
Pass-through program from
lowa Department of Cultural Affairs
Historic Preservation Fund Grants-In-Aid 15.904 2019-03 6,589 -
U.S.Deqartment of Justice
Direct program
COVID-19-Coronavirus Emergency Supplemental
Funding Program 16.034 1,742 -
Pass-through program from
lowa Department of Justice
Violence Against Women Formula Grants 16.588 VW-19-14-G 1,216 -
Violence Against Women Formula Grants 16.588 VW-20-41-LE 1,470 -
2,686 -
195
City of Dubuque, lowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2020
Pass-through
Federal Entity Amounts Passed-
Federal Grantor/Pass-Through CFDA Identifying Through to
Grantor/Program or ClusterTitle Number Number Expenditures Subrecipients
U.S.Department of Justice(continued)
Direct program
Bulletproof Vest Partnership Program 16.607 $ 4,428 $ -
Pass-through program from
lowa Department ofJustice
Public Safety Partnership and Community
Policing Grants 16J10 18-CAMP-OS 5,315
Public Safety Partnership and Community
Policing Grants 16.710 18-COPS-HEROIN-02 2,618 -
7,933 -
Direct program
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 7,185 -
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 12,168 -
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 19,548 -
Pass-through program from
Dubuque County Sheriff's Office
Edward Byrne Memorial Justice
Assistance Grant Program 16J38 17-JAG-299019 31,658
70,559 -
Total U.S.Department of Justice 87,348 -
U.S.Department of Transportation
Direct program
Airport Improvement Program 20.106 294,122 -
COVID-19-Airport Improvement Program 20.106 274,162 -
Airport Improvement Program 20.106 581,546 -
Airport Improvement Program 20.106 338,794 -
1,488,624 -
Highway Planning and Construction Cluster
Pass-through program from
lowa Department of Transportation
Highway Planning and Construction 20.205 EDP-2100(695)-7Y-31 547,006 -
Highway Planning and Construction 20.205 HDP-2100(664)--71-31 7,916 -
Highway Planning and Construction 20.205 HDP-2100(679)-71-31 307,591 -
Highway Planning and Construction 20.205 SB-IA-2100(675)--7T-31 17,000 -
Highway Planning and Construction 20.205 STP-U-2100(693)-70-31 282,070 -
Highway Planning and Construction 20.205 STP-U-2100(634)-70-31 11,469 -
Highway Planning and Construction 20.205 TAP-U-2100(683)--81-31 15,668 -
Total Highway Planning and Construction Cluster 1,188,720 -
Federal Transit Cluster
Direct program
Federal Transit-Formula Grants 20.507 80,130 -
COVID-19-Federal Transit-Formula Grants 20.507 1,175,154 -
Federal Transit-Formula Grants 20.507 767,200 -
2,022,484 -
Buses and Bus Facilities Formula,Competitive,and
Low or No Emissions Programs 20.526 1,632,894 -
Total Federal Transit Cluster 3,655,378 -
196
City of Dubuque, lowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2020
Pass-through
Federal Entity Amounts Passed-
Federal Grantor/Pass-Through CFDA Identifying Through to
Grantor/Program or ClusterTitle Number Number Expenditures Subrecipients
U.S.Department of Transportation(continued)
Pass-through program from
lowa Department ofTransportation
Formula Grants for Rural Areas
and Tribal Transit Program 20.509 ICB-CY19 $ 6,792 $ -
Transit Services Program Cluster
Enhanced Mobility of Seniors and
Individuals with Disabilities 20.513 2020-001-00-SFY20 60,614 -
Highway Safety Cluster
lowa Department of Public Safety
State and Community Highway Safety 20.600 PAP 19-402-MOOP 12,435 -
State and Community Highway Safety 20.600 PAP 20-402-MOOP 8,184 -
TotalHighwaySafetyCluster 20,619 -
Total U.S.Department of Transportation 6,420,747 -
Environmental Protection Aeencv
Direct program
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 48,878 -
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 99,773 -
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 61,289 -
Brownsfields Assessment and Cleanup
Cooperative Agreements 66.818 500
Total Environmental Protection Agency 210,440 -
Corporation for National and Communitv Service
Pass-through program from
lowa Commission on Volunteers
AmeriCorps 94.006 19-AG10 119,916
AmeriCorps 94.006 19-AF-OS 35,297
AmeriCorps 94.006 18-AC-10 45,459 -
AmeriCorps 94.006 18-FP-02 6,725 -
Total Corporation for National and Community Service 207,397 -
Total $ 24,466,566 $ 115,880
197
City of Dubuque, lowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2020
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, lowa, (the City) under programs of the federal government for the year ended June 30,
2020.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. 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. Federal financial assistance
provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient.
Note 3 - Indirect Cost Rate
The City has not elected to use the 10%de minimis cost rate.
198
City of Dubuque, lowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2020
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 No
Significant deficiencies identified not
considered to be material weaknesses None reported
Type of auditor's report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516: No
Identification of major programs:
Name of Federal Pro�ram CFDA Number
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants 14.218
CDBG - Disaster Recovery Grants- Pub. L. No. 113-2 Cluster
National Resiliency Disaster Recovery Competition 14.272
Housing Voucher Cluster
Section 8 Housing Choice Vouchers 14.871
Airport Improvement Program 20.106
Dollar threshold used to distinguish between type A
and type B programs: $750,000
Auditee qualified as low-risk auditee? No
199
City of Dubuque, lowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2020
Part II: Findings related to Financial Statements
Material Weakness
2020-001 Material Audit Adjustments
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 material audit adjustments to
accounts payable and the Schedule of Expenditures of Federal Awards. We also proposed
significant audit adjustments to receivables, unavailable revenue, and capital assets.
Cause—The City's existing internal controls over accounts payable,the Schedule of Expenditures of
Federal Awards, receivables, unavailable revenue, and capital assets 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 payable, the
Schedule of Expenditures of Federal Awards, receivables, unavailable revenue, and capital assets.
Views of Responsible Officials—We agree with the auditor's comments.The City of Dubuque
Finance Department has experienced significant staff turnover, including key management staff, in
the past twelve months.The following action will be taken to improve the situation.An Assistant
Director of Finance, who possesses significant government accounting experience,was hired on
April 1, 2020.The Assistant Director of Finance has taken the lead of the audit and financial
preparation and will continue to improve procedures. In addition,the City is in the process of
selecting a new Enterprise Resource Planning (ERP) system to be implemented over the next two
years.The new ERP system will have better management and controls over accounts payable,
grants, accounts receivable, unearned revenue, and assets.The current ERP system lacks
functionality and the procedures related to accounts payable,grants, accounts receivable,
unearned revenue, and capital assets are all manual and compiled by reviewing invoices and
receipts and compiling the information into spreadsheets.
Part III: Findings and Questioned Costs for Federal Awards
There were no findings and questioned costs to report.
200
City of Dubuque, lowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2020
Part IV: Other Findings Related to Required Statutory Reporting
2020-IA-A Certified Budget—Disbursements during the year ended June 30, 2020 did not exceed the budget
by function.
2020-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.
2020-IA-C Travel Expense—No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
2020-IA-D Business Transactions—Business transactions between the City and City officials or employees are
detailed as follows:
Name,Title, and Transaction
Business Connection Description Amount
Riley Fairchild, City employee, spouse is Services $ 18,950
owner of Fairchild Business Coaching
Mike Kerth, City employee, spouse is Supplies 14,100
co-owner of Steve's Ace Hardware
Gina Hodgson, City employee, Crop Cover 1,635
spouse is Bob Hodgson
Paula Cook, City employee, spouse is Services 483
owner of JASC Property LLC.
Douglas Merke, City employee, Services 450
spouse is owner of River Valley
Veterinary Services
John Hefel, City employee, Services 318
spouse is owner of A Frame of Mind
Framing &Gallery
In accordance with Chapter 362.5(3)(j) of the Code of lowa,the transaction with Gina Hodgson,
Paula Cook, Douglas Merke, and John Hefel do not appear to represent conflict of interest since the
total transaction was less than $6,000 during the fiscal year.The transactions with Riley Fairchild
and Mike Kerth may represent conflicts of interest since they were not entered into through
competitive bidding in accordance with Chapter 362.5(3)(d) of the Code of lowa.
2020-IA-E Restricted Donor Activity—No transactions were noted between the City, City officials, City
employees, and restricted donors in compliance with Chapter 68B of the Code of lowa.
201
City of Dubuque, lowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2020
Part IV: Other Findings Related to Required Statutory Reporting(continued)
2020-IA-F 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.
2020-IA-G Council Minutes—No transactions were found that we believe should have been approved in the
Council minutes but were not.
2020-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 lowa and the City's investment policy were
noted.
2020-IA-I Revenue Debt—No instances of non-compliance with the provisions of the Sewage Disposal
Works, Water Utility, or Stormwater Utility revenue debt resolutions were noted.
2020-IA-J Annual Urban Renewal Report—The annual urban renewal report was properly approved and
certified to the lowa 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 following action will be taken to improve
the situation.The annual TIF Debt Certification to the County and the Annual Urban Renewal
Report will be prepared at the same time. A reconciliation will be done between both reports prior
to submittal.
2020-IA-K Solid Waste Tonnage Fees Retained—No instances of non-compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 455B.310 of the Code of lowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
2020-IA-L 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 lowa
Administrative Code.
2020-IA-M Public Improvement Projects—During our audit, we noted one project in which the City published
a notice of public hearing 24 days before the date of the public hearing.To be in accordance with
Chapter 26.12 and Chapter 362.3 of the Code of lowa, a notice of public hearing must be published
for public improvement projects between 4-20 days before the public hearing date.
Recommendation—The City should ensure all notices are published in accordance with Chapter
26.12 and Chapter 362.3 of the Code of lowa.
202
City of Dubuque, lowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2020
Part IV: Other Findings Related to Required Statutory Reporting(continued)
Response—We agree with the auditor's comments. The following action will be taken to improve
the situation. The notice for the Jackson Street Construction Project should have been split into two
separate notices: Notice of Hearing and the Notice to Property Owners. A notice to property
owners has a different timeline and publication requirement than a Notice of Hearing. In the
future, notices for construction projects will be reviewed to ensure that publication requirements
are met.
203
THIS PAGE IS INTENTIONALLY LEFT BLANK
204
APPENDIX D: FORM OF CONTINUING DISCLOSURE CERTIFICATE
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate") is executed and
delivered by the City of Dubuque, State of Iowa(the "Issuer"), in connection with the issuance of
$ General Obligation Bonds, Series 2021A and $ Taxable
General Obligation Bonds, Series 2021B (collectively, the "Bonds") dated ,
2021. The Bonds are being issued pursuant to a Resolution of the Issuer approved on
, 2021 (the "Resolution"). The Issuer covenants and agrees as follows:
Section 1. Purpose of the Disclosure Certificate; Interpretation. This Disclosure
Certificate is being executed and delivered by the Issuer for the benefit of the Holders and
Beneficial Owners of the Bonds and in order to assist the Participating Underwriters in
complying with S.E.C. Rule 15c2-12(b)(5). This Disclosure Certificate shall be governed by,
construed and interpreted in accordance with the Rule, and, to the extent not in conflict with the
Rule, the laws of the State. Nothing herein shall be interpreted to require more than required by
the Rule.
Section 2. Definitions. In addition to the definitions set forth in the Resolution, which
apply to any capitalized term used in this Disclosure Certificate unless otherwise defined in this
Section, the following capitalized terms shall have the following meanings:
"Annual Financial Information" shall mean financial information or operating data of the
type included in the final Official Statement, provided at least annually by the Issuer pursuant to,
and as described in, Sections 3 and 4 of this Disclosure Certificate.
"Beneficial Owner" shall mean any person which (a)has the power, directly or indirectly,
to vote ar consent with respect to, or to dispose of ownership of, any Bonds (including persons
holding Bonds through nominees, depositories or other intermediaries), or (b) is treated as the
owner of any Bonds for federal income tax purposes.
"Business Day" shall mean a day other than a Saturday or a Sunday or a day on which
banks in Iowa are authorized or required by law to close.
"Dissemination Agent" shall mean the Issuer or any Dissemination Agent designated in
writing by the Issuer and which has filed with the Issuer a written acceptance of such
designation.
"Financial Obligation" shall mean a(i) debt obligation; (ii) derivative instrument entered
into in connection with, or pledged as security or a source of payment for, an existing or planned
debt obligation; or (iii) guarantee of(i) or (ii). The term Financial Obligation shall not include
municipal securities as to which a final official statement has been provided to the MSRB
consistent with S.E.C. Rule 15c2-12.
"Holders" shall mean the registered holders of the Bonds, as recorded in the registration
books of the Registrar.
"Listed Events" shall mean any of the events listed in Section 5(a) of this Disclosure
Certificate.
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board, 1300 I Street NW, Suite 1000, Washington, DC 20005.
"National Repository" shall mean the MSRB's Electronic Municipal Market Access
website, a/k/a "EMMA" (emma.msrb.org).
"Official Statement" shall mean the Issuer's Official Statement for the Bonds, dated
, 2021.
"Participating Underwriter" shall mean any of the original underwriters of the Bonds
required to comply with the Rule in connection with offering of the Bonds.
"Rule" shall mean Rule 15c2-12 adopted by the Securities and Exchange Commission
(S.E.C.) under the Securities EXchange Act of 1934, and any guidance and procedures
thereunder published by the S.E.C., as the same may be amended from time to time.
"State" shall mean the State of Iowa.
Section 3. Provision of Annual Financial Information.
a) The Issuer shall, or shall cause the Dissemination Agent to, not later than two
hundred ten (210) days after the end of the Issuer's fiscal year(presently June 30th),
commencing with information for the 2020/2021 �scal year,provide to the National
Repository an Annual Financial Information filing consistent with the requirements of
Section 4 of this Disclosure Certificate. The Annual Financial Information filing must be
submitted in such format as is required by the MSRB (currently in "searchable PDF"
format). The Annual Financial Information filing may be submitted as a single document
or as separate documents comprising a package. The Annual Financial Information filing
may cross-reference other information as provided in Section 4 of this Disclosure
Certificate; provided that the audited financial statements of the Issuer may be submitted
separately from the balance of the Annual Financial Information filing and later than the
date required above for the filing of the Annual Financial Information if they are not
available by that date. If the Issuer's fiscal year changes, it shall give notice of such
change in the same manner as for a Listed Event under Section 5(c).
b) If the Issuer is unable to provide to the National Repository the Annual
Financial Information by the date required in subsection (a), the Issuer shall send a notice
to the Municipal Securities Rulemaking Board, if any, in substantially the form attached
as Exhibits A and A-1.
c) The Dissemination Agent shall:
i. each year file Annual Financial Information with the National
Repository; and
ii. (if the Dissemination Agent is other than the Issuer), file a report with
the Issuer certifying that the Annual Financial Information has been filed pursuant
to this Disclosure Certificate, stating the date it was filed.
Section 4. Content of Annual Financial Information. The Issuer's Annual Financial
Information filing shall contain or incorporate by reference the following:
a) The last available audited financial statements of the Issuer for the prior fiscal
year, prepared in accordance with generally accepted accounting principles promulgated
by the Financial Accounting Standards Board as modified in accordance with the
governmental accounting standards promulgated by the Governmental Accounting
Standards Board or as otherwise provided under State law, as in effect from time to time,
or, if and to the eXtent such financial statements have not been prepared in accordance
with generally accepted accounting principles, noting the discrepancies therefrom and the
effect thereo£ If the Issuer's audited financial statements for the preceding years are not
available by the time Annual Financial Information is required to be filed pursuant to
Section 3(a), the Annual Financial Information filing shall contain unaudited financial
statements of the type included in the final Official Statement, and the audited financial
statements shall be filed in the same manner as the Annual Financial Information when
they become available.
b) A table, schedule or other information prepared as of the end of the preceding
fiscal year, of the type contained in the final Official Statement under the captions "Iowa
Property Valuations", "1/1/2020 Valuations", "2020 Gross TaXable Valuation by Class of
Property", "Trend of Valuations", "Larger Taxpayers", "Debt Limit*", "Direct Debt",
"Other Debt", "Indirect Debt", "Tax Rates", "Annual Fiscal Year Debt Service
Payments", and "Levies and Collections".
*will include one valuation year going forward
Any or all of the items listed above may be included by specific reference to other documents,
including official statements of debt issues of the Issuer or related public entities, which have
been filed with the National Repository. The Issuer shall clearly identify each such other
document so included by reference.
Section 5. Reportin o�f S�i�nificant Events.
a) Pursuant to the provisions of this Section, the Issuer shall give, or cause to be
given, notice of the occurrence of any of the following events with respect to the Bonds
in a timely manner not later than 10 Business Days after the day of the occurrence of the
event:
i. Principal and interest payment delinquencies;
ii. Non-payment related defaults, if material;
iii. Unscheduled draws on debt service reserves reflecting financial
difficulties;
iv. Unscheduled draws on credit enhancements relating to the Bonds
reflecting financial difficulties;
v. Substitution of credit or liquidity providers, or their failure to perform;
vi. Adverse tax opinions, the issuance by the Internal Revenue Service of
proposed or final determinations of taxability,Notices of Proposed Issue (IRS
Form 5701-TEB) or other material notices or determinations with respect to the
tax-exempt status of the Series Bonds, or material events affecting the tax-exempt
status of the Bonds;
vii. Modifications to rights of Holders of the Bonds, if material;
viii. Bond calls (excluding sinking fund mandatory redemptions), if
material, and tender offers;
ix. Defeasances of the Bonds;
x. Release, substitution, or sale of property securing repayment of the
Bonds, if material;
xi. Rating changes on the Bonds;
Xii. Bankruptcy, insolvency, receivership or similar event of the Issuer;
xiii. The consummation of a merger, consolidation, or acquisition
involving the Issuer or the sale of all or substantially all of the assets of the Issuer,
other than in the ordinary course of business, the entry into a definitive agreement
to undertake such an action or the termination of a definitive agreement relating to
any such actions, other than pursuant to its terms, if material;
Xiv. Appointment of a successor or additional trustee or the change of
name of a trustee, if material;
Xv. Incurrence of a Financial Obligation of the Issuer, if material, or
agreement to covenants, events of default, remedies, priority rights, or other
similar terms of a Financial Obligation of the Issuer, any of which affect security
holders, if material; and
Xvi. Default, event of acceleration, termination event, modification of
terms or other similar events under the terms of a Financial Obligation of the
Issuer, any of which reflect financial difficulties.
b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event, the Issuer shall determine if the occurrence is subject to notice only if material,
and if so shall as soon as possible determine if such event would be material under
applicable federal securities laws.
c) If the Issuer determines that knowledge of the occurrence of a Listed Event is
not subject to materiality, or determines such occurrence is subject to materiality and
would be material under applicable federal securities laws, the Issuer shall promptly, but
not later than 10 Business Days after the occurrence of the event, file a notice of such
occurrence with the Municipal Securities Rulemaking Board through the filing with the
National Repository.
Section 6. Termination of Reportin� ag tion. The Issuer's obligations under this
Disclosure Certificate with respect to each Series of Bonds shall terminate upon the legal
defeasance,prior redemption or payment in full of all of the Bonds of that Series or upon the
Issuer's receipt of an opinion of nationally recognized bond counsel to the effect that, because of
legislative action or final judicial action or administrative actions or proceedings, the failure of
the Issuer to comply with the terms hereof will not cause Participating Underwriters to be in
violation of the Rule or other applicable requirements of the Securities Exchange Act of 1934, as
amended.
Section 7. Dissemination Agent. The Issuer may, from time to time, appoint or engage a
Dissemination Agent to assist it in carrying out its obligations under this Disclosure Certificate,
and may discharge any such Agent, with or without appointing a successor Dissemination Agent.
The Dissemination Agent shall not be responsible in any manner for the content of any notice or
report prepared by the Issuer pursuant to this Disclosure Certificate. The initial Dissemination
Agent shall be the Issuer.
Section 8. Amendment; Waiver. Notwithstanding any other provision of this Disclosure
Certificate, the Issuer may amend this Disclosure Certificate, and any provision of this
Disclosure Certificate may be waived,provided that the following conditions are satisfied:
a) If the amendment or waiver relates to the provisions of Section 3(a), 4, or 5(a),
it may only be made in connection with a change in circumstances that arises from a
change in legal requirements, change in law, or change in the identity, nature or status of
an obligated person with respect to the Bonds, or the type of business conducted;
b) The undertaking, as amended or taking into account such waiver, would, in the
opinion of nationally recognized bond counsel, have complied with the requirements of
the Rule at the time of the original issuance of the Bonds, after taking into account any
amendments or interpretations of the Rule, as well as any change in circumstances; and
c) The amendment or waiver either (i) is approved by the Holders of the Bonds in
the same manner as provided in the Resolution for amendments to the Resolution with
the consent of Holders, or(ii) does not, in the opinion of nationally recognized bond
counsel, materially impair the interests of the Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the Issuer
shall describe such amendment in the neXt Annual Financial Information filing, and shall
include, as applicable, a narrative explanation of the reason for the amendment or waiver and its
impact on the type (or in the case of a change of accounting principles, on the presentation) of
financial information or operating data being presented by the Issuer. In addition, if the
amendment relates to the accounting principles to be followed in preparing financial statements,
(i) notice of such change shall be given in the same manner as for a Listed Event under Section
5(c), and (ii) the Annual Financial Information filing for the year in which the change is made
will present a comparison or other discussion in narrative form (and also, if feasible, in
quantitative form) describing or illustrating the material differences between the financial
statements as prepared on the basis of the new accounting principles and those prepared on the
basis of the former accounting principles.
Section 9. Additional Information. Nothing in this Disclosure Certificate shall be
deemed to prevent the Issuer from disseminating any other information, using the means of
dissemination set forth in this Disclosure Certificate or any other means of communication, or
including any other information in any Annual Financial Information filing or notice of
occurrence of a Listed Event, in addition to that which is required by this Disclosure Certificate.
If the Issuer chooses to include any information in any Annual Financial Information filing or
notice of occurrence of a Listed Event in addition to that which is specifically required by this
Disclosure Certificate, the Issuer shall have no obligation under this Certificate to update such
information or include it in any future Annual Financial Information filing or notice of
occurrence of a Listed Event.
Section 10. Default. In the event of a failure of the Issuer to comply with any provision
of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds may take such
actions as may be necessary and appropriate, including seeking mandate or specific performance
by court order, to cause the Issuer to comply with its obligations under this Disclosure
Certificate. Direct, indirect, consequential and punitive damages shall not be recoverable by any
person for any default hereunder and are hereby waived to the extent permitted by law. A
default under this Disclosure Certificate shall not be deemed an event of default under the
Resolution, and the sole remedy under this Disclosure Certificate in the event of any failure of
the Issuer to comply with this Disclosure Certificate shall be an action to compel performance.
Section 11. Duties, Immunities and Liabilities of Dissemination A e�nt. The
Dissemination Agent shall have only such duties as are specifically set forth in this Disclosure
Certificate, and the Issuer agrees to indemnify and save the Dissemination Agent, its officers,
directors, employees and agents, harmless against any loss, expense and liabilities which it may
incur arising out of or in the exercise or performance of its powers and duties hereunder,
including the costs and expenses (including attorneys' fees) of defending against any claim of
liability,but excluding liabilities due to the Dissemination Agent's negligence or willful
misconduct. The obligations of the Issuer under this Section shall survive resignation or removal
of the Dissemination Agent and payment of the Bonds.
Section 12. Beneficiaries. This Disclosure Certificate shall inure solely to the benefit of
the Issuer, the Dissemination Agent, the Participating Underwriters and Holders and Beneficial
Owners from time to time of the Bonds, and shall create no rights in any other person or entity.
Section 13. Rescission Ri h�ts. The Issuer hereby reserves the right to rescind this
Disclosure Certificate without the consent of the Holders in the event the Rule is repealed by the
S.E.C. or is ruled invalid by a federal court and the time to appeal from such decision has
expired. In the event of a partial repeal or invalidation of the Rule, the Issuer hereby reserves the
right to rescind those provisions of this Disclosure Certificate that were required by those parts
of the Rule that are so repealed or invalidated.
Date: day of , 2021.
CITY OF DUBUQUE, STATE OF IOWA
By:
Mayor
ATTEST:
By:
City Clerk
EXHIBIT A
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL
INFORMATION
Name of Issuer: City of Dubuque, Iowa.
Name of Bond Issue: $ General Obligation Bonds, Series 2021A
Dated Date of Issue: , 2021
NOTICE IS HEREBY GIVEN that the Issuer has not provided Annual Financial
Information with respect to the above-named Bonds as required by Section 3 of the Continuing
Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer
anticipates that the Annual Financial Information will be filed by
Dated: day of , 20_
CITY OF DUBUQUE, STATE OF IOWA
By:
Its:
EXHIBIT A-1
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL
INFORMATION
Name of Issuer: City of Dubuque, Iowa.
Name of Bond Issue: $ Taxable General Obligation Bonds, Series 2021B
Dated Date of Issue: , 2021
NOTICE IS HEREBY GIVEN that the Issuer has not provided Annual Financial
Information with respect to the above-named Bonds as required by Section 3 of the Continuing
Disclosure Certificate delivered by the Issuer in connection with the Bonds. The Issuer
anticipates that the Annual Financial Information will be filed by
Dated: day of , 20_
CITY OF DUBUQUE, STATE OF IOWA
By:
Its:
01867513-1\10422-209
OFFICIAL BID FORM
To: The City Council of Sale Date: May 3, 2021
Dubuque,Iowa 10:00 A.M. Central Time
RE: $29,395,000* General Obligation Bonds, Series 2021A(the "Series 2021A Bonds"), dated June 2, 2021.
For all or none of the above Series 2021A Bonds in accordance with the TERMS OF OFFERING, we will pay you
$ (not less than$29,189,235)plus accrued interest to date of delivery for fully registered
Bonds bearing interest rates and maturing in the stated years as follows:
% due 2022 % due 2032
% due 2023 % due 2033
% due 2024 % due 2034
% due 2025 °/a due 2035
% due 2026 % due 2036
% due 2027 °/a due 2037
% due 2028 °/a due 2038
°/a due 2029 °/a due 2039
°/a due 2030 °/a due 2040
°/a due 2031 °/a due 2041
*The City reserves the right to increase or decrease the aggregate principal amount of the issue.Such change will be in increments of$5,000 and
may be made in any of the maturities.The purchase price will be adjusted proportionately to reflect any change in issue size.
In submitting this bid,we represent that(i)this bid constitutes a firm offer to purchase the 2021A Bonds,and(ii)we have an established
industry reputation for underwriting new issuances of municipal bonds and notes.
In making this offer we accept all of the terms and conditions of the TERMS OF OFFERING published in the Preliminary
Official Statement dated April 19, 202L In the event of failure to deliver these Bonds in accordance with the TERMS
OF OFFERING as printed in the Preliminary Official Statement and made a part hereof,we reserve the right to withdraw
our offer. All blank spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer,the above quoted prices being controlling,but only as an aid for the verification of the offer,
we have made the following computations:
NET INTEREST COST: $
TRUE INTEREST COST: % (Based on dated date of June 2,2021)
Account Manager: By:
Account Members:
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Dubuque,Iowa this 3rd day
of May 2021.
Attest: By:
Title: Title:
OFFICIAL BID FORM
To: The City Council of Sale Date: May 3, 2021
Dubuque,Iowa 10:00 A.M. Central Time
RE: $12,945,000* Taxable General Obligation Bonds, Series 2021B (the"Series 2021B Bonds"), dated June 2, 2021.
For all or none of the above Series 2021B Bonds in accordance with the TERMS OF OFFERING,we will pay you
$ (not less than$12,845,385)plus accrued interest to date of delivery for fully registered
Bonds bearing interest rates and maturing in the stated years as follows:
% due 2022 % due 2030
% due 2023 % due 2031
% due 2024 % due 2032
% due 2025 % due 2033
°/a due 2026 °/a due 2034
% due 2027 % due 2035
% due 2028 % due 2036
% due 2029
*The City reserves the right to increase or decrease the aggregate principal amount of the issue.Such change will be in increments of $5,000
and may be made in any of the maturities.The purchase price will be adjusted proportionately to reflect any change in issue size.
In making this offer we accept all of the terms and conditions of the TERMS OF OFFERING published in the Preliminary
Official Statement dated April 19, 202L In the event of failure to deliver these Bonds in accordance with the TERMS
OF OFFERING as printed in the Preliminary Official Statement and made a part hereof,we reserve the right to withdraw
our offer. All blank spaces of this offer are intentional and are not to be construed as an omission.
Not as a part of our offer,the above quoted prices being controlling,but only as an aid for the verification of the offer,
we have made the following computations:
NET 1NTEREST COST: $
TRUE INTEREST COST: % (Based on dated date of June 2,2021)
Account Manager: By:
Account Members:
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Dubuque,Iowa this 3rd day
of May 2021.
Attest: By:
Title: Title:
STATE OF IOWA SS:
DUBUQUE COUNTY
CERTIFICATE OF PUBLICATION
I, Kathy Goetzinger, a Billing Clerk for Woodward
Communications, Inc., an Iowa corporation, publisher
of the Telegraph Herald, a newspaper of general
circulation published in the City of Dubuque, County
of Dubuque and State of Iowa; hereby certify that the
attached notice was published in said newspaper on the
following dates:
04/23/2021
and for which the charge is 62.58
Subscribed to before me, a Notary Public in aUor
Dubuque County, Iowa,
this 26th day of April, 2021
4e Q,,t
Nota ublic in and for Dubuq e County, Iowa.
JANET K. PAPE
Comm isalon Nurmbor 199M
My Comm.. E.xp, DEC 11, 2022
Ad text : NOTICE OF BOND SALE
Time and Place of Sealed Bids: Bids for the sale of Bonds
of the City of Dubuque, State of Iowa, hereafter described,
must be received at the office of the Director of Finance &
Budget, City Hall, 50 West 13th Street, Dubuque, Iowa 52001;
Telephone: 563-589-4100 (the "Issuer") in accordance with the
official Terms of Offering, on the 3rd day of May, 2021. The
bids will then be publicly opened and referred for action to
the meeting of the City Council in conformity with the Terms
of Offering.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2021 A, in the amount of
$29,395,000*, to be dated June 2, 2021 (the "2021A Bonds").
Bids to be received before 10:00 A.M. C.D.T.; and
TAXABLE GENERAL OBLIGATION BONDS, SERIES 2021B, in the
amount of $12,940,000*, to be dated June 2, 2021 (the 2021B
Bonds). Bid to be received before 10:00 A.M. C.D.T.
(collectively, the Bonds)
*Subject to principal adjustment pursuant to official Terms
of Offering.
Manner of Bidding: Open bids will not be received. Bids
will be received in any of the following methods:
- Sealed Bidding: Sealed bids may be submitted and will be
received at the office of the Director of Finance & Budget at
City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
- Electronic Internet Bidding: Electronic internet bids
will be received at the office of the Director of Finance &
Budget at City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
The bids must be submitted through the PARITY* competitive
bidding system.
- Electronic Facsimile/Email Bidding: Electronic facsimile
or email bids will be received at City Hall, Dubuque, Iowa
(facsimile number: (563) 589-4149) or the via email to the
Citys Municipal Advisor (tionna@ipamuni.com). Electronic
facsimile and email bids will be sealed and treated as sealed
bids.
Consideration of Bids: After the time for receipt of bids
has passed, the close of sealed bids will be announced.
Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and
announced.
Sale and Award: The sale and award of the Bonds will be
held at the Historic Federal Building, 350 West 6th Street,
Dubuque, Iowa at a meeting of the City Council on the above
date at 6:30 P.M. Its possible the meeting on May 3, 2021 may
be held electronically. Please see the agenda in advance of
the meeting for details on how to access the meeting.
Official Statement: The Issuer has issued an Official
Statement of information pertaining to the Bonds to be
offered, including a statement of the Terms of Offering and an
Official Bid Form, which is incorporated by reference as a
part of this notice. The Official Statement may be obtained
by request addressed to the City Clerk, City Hall, 50 West
13th Street, Dubuque, Iowa 52001; Telephone: (563) 589-4100 or
the Issuer's Municipal Advisor, Independent Public Advisors,
LLC, 8805 Chambery Blvd, Suite 300 #114, Johnston, Iowa,
50131, Telephone: (515) 259-8193.
Terms of Offering: All bids shall be in conformity with and
the sale shall be in accordance with the Terms of Offering as
set forth in the Official Statement.
Legal Opinion: The Bonds will be sold subject to the
opinion of Ahlers & Cooney, P.C., Attorneys of Des Moines,
Iowa, as to the legality and their opinion will be furnished
together with the printed Bonds without cost to the purchaser
and all bids will be so conditioned. Except to the extent
necessary to issue their opinion as to the legality of the
Bonds, the attorneys will not examine or review or express any
opinion with respect to the accuracy or completeness of
documents, materials or statements made or furnished in
connection with the sale, issuance or marketing of the Bonds.
Rights Reserved: The right is reserved to reject any or all
bids, and to waive any irregularities as deemed to be in the
best interests of the public.
By order of the City Council of the City of Dubuque, State
of Iowa.
Adrienne N. Breitfelder
City Clerk, City of Dubuque, State of Iowa
It 4/23