Advertisement for Sale of $3,720,000 Water Revenue Refunding Bonds, Series 2021CCity of Dubuque
City Council Meeting
Action Items # 7.
Copyrighted
July 6, 2021
ITEM TITLE: Proceedings to Direct Advertisement for Sale of $3,720,000 Water
Revenue Refunding Bonds, Series 2021 C, Approval of the Preliminary
Official Statement, and Approval of Electronic Bidding Procedures
SUMMARY: 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 $3,720,000 Water
Revenue Refunding Bonds, Series 2021 C.
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
RESOLUTION Directing the advertisement for sale of $3,720,000*
(subject to adjustment per terms of offering) Water Revenue Refunding
Bonds, Series 2021 C, and approving electronic bidding procedures and
distribution of preliminary official statement
Suggested Disposition: Receive and File; Adopt Resolution(s)
Staff Memo
Resolution
Preliminary Official Statement
Notice of Advertisement
Bond Counsel Letter
Type
City Manager Memo
Staff Memo
Resolutions
Supporting Documentation
Supporting Documentation
Supporting Documentation
THE CITYOF Dubuque
DtUB E All -America CRY
1
Masterpiece on the Mississippi I I 11.1
2007. 2012 • 2013 • 2017
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Proceedings to Direct Advertisement for Sale of $3,720,000 Water
Revenue Refunding Bonds, Series 2021 C, Approval of the Preliminary
Official Statement, and Approval of Electronic Bidding Procedures
DATE: June 29, 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 $3,720,000 Water Revenue
Refunding Bonds, Series 2021 C.
$3,720,000 is intended to provide funds to refund previously issued bond series 2008D
and 2010D that are now callable to realize estimated interest savings of $374,076 and
$80,000 is intended to provide funds for bond issuance costs. Repayments of the debt
will be Water user fees.
The bond sale will be held on July 19, 2021 at 10:00 a.m. The results will be brought to
the July 19, 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.
� kW4 zv�-�
Michael C. Van Milligen
MCVM/jml
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
THE CF
DUUB-�gkFE
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jennifer Larson, Director of Finance and Budget
Dubuque
A&AmMOV
r.r i
2007-2012.2013
2017*2019
SUBJECT: Proceedings to Direct Advertisement for Sale of $3,720,000 Water
Revenue Refunding Bonds, Series 2021 C, Approval of the Preliminary
Official Statement, and Approval of Electronic Bidding Procedures
DATE: June 29, 2021
INTRODUCTION
The purpose of this memorandum is to recommend the advertisement for the sale of the
$3,720,000 Water Revenue Refunding Bonds, Series 2021 C, approval of the
preliminary official statement, and approval of electronic bidding procedures.
DISCUSSION
On June 21, 2021, a public hearing was held on a bond issuance not to exceed
$3,800,000 Water Revenue Refunding Bonds. The not to exceed amounts include a
contingency for fluctuations in the bond market for interest rates and bond issuance
costs.
$3,720,000 is intended to provide funds to refund previously issued bond series 2008D
and 201 OD that are now callable to realize estimated interest savings of $374,076 and
$80,000 is intended to provide funds for bond issuance costs.
Repayments of the debt will be Water user fees.
The bond sale will be held on July 19, 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
104
ITEMS TO INCLUDE ON AGENDA
CITY OF DUBUQUE, IOWA
$3,720,000* (Subject to Adjustment per Terms of Offering) Water Revenue Refunding Bonds,
Series 2021 C
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.
July 6, 2021
The City Council of the City of Dubuque, State of Iowa, met in regular session, in the
Historic Federal Building, 350 West 6th Street, Dubuque, Iowa, 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:
-1-
Council Member Roussell introduced the following Resolution entitled "RESOLUTION
DIRECTING THE ADVERTISEMENT FOR SALE OF $3,720,000* (SUBJECT TO
ADJUSTMENT PER TERMS OF OFFERING) WATER REVENUE REFUNDING BONDS,
SERIES 2021C, AND APPROVING ELECTRONIC BIDDING PROCEDURES AND
DISTRIBUTION OF PRELIMINARY OFFICIAL STATEMENT" and moved its adoption.
Council Member Cavanagh seconded the Resolution to adopt. The roll was called and the vote
was,
AYES: Sprank, Buol, Jones, Roussell, Farber, Cavanagh, Resnick
NAYS:
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 237-21
RESOLUTION DIRECTING THE ADVERTISEMENT FOR
SALE OF $3,720,000* (SUBJECT TO ADJUSTMENT PER
TERMS OF OFFERING) WATER REVENUE REFUNDING
BONDS, SERIES 2021C, AND APPROVING ELECTRONIC
BIDDING PROCEDURES AND DISTRIBUTION OF
PRELIMINARY OFFICIAL STATEMENT
WHEREAS, the Issuer is in need of funds to pay costs of refunding outstanding revenue
obligations of the City, including Water Revenue Bonds, Series 2010D dated September 21,
2010, and Water Revenue Bonds, Series 2008D dated November 4, 2008, and it is deemed
necessary and advisable that Water Revenue Refunding Bonds, to the amount of not to exceed
$3,800,000 be authorized for said purpose(s); and
WHEREAS, pursuant to notice published as required by Section 384.83 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, 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
-2-
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 competitive bidding process, and to facilitate the delivery of bids by interested parties in
connection with the offering at public sale.
Section 2. That Water Revenue Refunding Bonds, Series 2021C, of City of Dubuque,
State of Iowa, in the amount of $3,720,000* (Subject to Adjustment per Terms of Offering), to
be issued as referred to in the preamble of this Resolution, to be dated August 18, 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 191h day of July, 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:
-3-
(To be published between June 29, 2021 and July 14, 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")
before 10:00 A.M., on the 19th day of July, 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:
WATER REVENUE REFUNDING BONDS, SERIES 2021C, in
the amount of not to exceed $3,720,000*, to be dated August 18,
2021* (the "Bonds"). Bid to be received before 10:00 A.M.
C.D.T.
*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 W. 13th St., Dubuque, IA
52001.
Electronic Internet Bidding: Electronic internet bids will be received at the office
of the Director of Finance & Budget at City Hall, 50 W. 13th St., Dubuque, IA
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 the office of the Director of Finance & Budget at City Hall, 50 W.
13th St., Dubuque, IA 52001 (facsimile number: (563) 589-4149) or via email to
the City's Municipal Advisor, Independent Public Advisors, West Des Moines,
Iowa (tionna@ipamuni.com). Electronic facsimile and email bids will be 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 July 19, 2021
at 6:30 P.M. It's possible the meeting 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 Breitfelder, City Clerk, City of
Dubuque, State of Iowa
(End of Notice)
-5-
PASSED AND APPROVED this 6Ih day of July, 2021.
ATTEST:
Adrienne Breitfelder, City Clerk
ame
214 p'. X�/
Roy b. 1, Mayor
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
1, 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
($3,720,000* (Subject to Adjustment per Terms of Offering) Water Revenue
Refunding Bonds, Series 2021C)
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:
July 9, 2021
, 2021.
WITNESS my official signature this 20th day of July , 2021.
Trish Gleason, Assistant City Clerk, City of
Dubuque, State of Iowa
.(SFAL)
i
w ra r
01899837-1110422-215
CERTIFICATE
STATE OF IOWA )
) SS
COUNTY OF DUBUQUE )
I, the undersigned Assistant 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 20th day of
July , 2021. L
noa
Trish Gleason, Assistant City Clerk, City of
Dubuque, State of Iowa
(SEAL)
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:
07/09/2021
and for which the charge is 62.34
Subscribed to efore me, a Notary lic in and for
Dubuque County, Iowa,
this 9th day of July, 2021
Not t1n
blic in and for Dubuque County, Iowa.
JANET K. PAPE
. Commission IN
tB9869
Ny Comm. Esp. DEC 11, 2022
Ad text : CITY OF DUBUQUE, IOWA
OFFICIAL NOTICE
1►tell I14 telW.10121OKIa�
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") before 10:00 A.M., on
the 19th day of July, 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:
WATER REVENUE REFUNDING BONDS, SERIES 2021C, in the amount
of not to exceed $3,720,000*, to be dated August 18, 2021*
(the "Bonds"). Bid to be received before 10:00 A.M. C.D.T.
*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 W. 13th St., Dubuque, IA 52001.
- Electronic Internet Bidding: Elec-tronic internet bids
will be received at the office of the Director of Finance &
Budget at City Hall, 50 W. 13th St., Dubuque, IA 52001. The
bids must be submitted through the PARITY* competitive bidding
system.
- Electronic Facsimile/Email Bid -ding: Electronic facsimile
or email bids will be received at the office of the Director
of Finance & Budget at City Hall, 50 W. 13th St., Dubuque, IA
52001 (facsimile number: (563) 589-4149) or via email to the
City's Municipal Advisor, Independent Public Advisors, West
Des Moines, Iowa (tionna@ipamuni.com). Electronic facsimile
and email bids will be 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 July 19,
2021 at 6:30 P.M. It's possible the meeting 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 Breitfelder, City Clerk, City of Dubuque, State of
Iowa
It 7/9
PRELIMINARY OFFICIAL STATEMENT DATED JULY, 2021
Refunding Issue Moody's Investors Service
� 3
Assuming compliance with certain covenants, in the opinion of Ahlers & Cooney, P.C., Bond Counsel, under present law and assuming continued compliance with the
a.p requirements of the Internal Revenue Code of 1986, as amended (the "Code'), 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 Bonds will NOT be designated as "qualified tax-exempt" obligations. Interest on the
Bonds is NOT exempt from present Iowa income taxes. See " TAXMATTERS" herein for a more detailed discussion
t >,
THECITY OF
a°
MasteTiece on the Mississippi
CITY OF DUBUQUE, IOWA
$3,720,000* Water Revenue Refunding Bonds, Series 2021C
T
BIDS RECEIVED: July 19, 2021, 10:00 o'clock A.M., Central Time
AWARD: July 19, 2021, 6:30 o'clock P.M., Central Time
o�
Dated: Date of Delivery Principal Due: June 1 as shown on inside front cover
�N
The $3,720,000* Water Revenue Refunding Bonds, Series 2021C (the "Bonds") are being issued pursuant to Chapter 384 of the Code of
oIowa, a Master Resolution (the "Master Resolution") approved by the City Council of the City of Dubuque, Iowa (the "City") on October
° 20, 2008, and a 2021C Series Resolution (the "Series Resolution") to be approved by the City on August 2, 2021. Proceeds of the Bonds
o will be used to current refund, on August 19, 2021, outstanding revenue obligations of the City, including Water Revenue Bonds, Series
2010D dated September 21, 2010, and Water Revenue Bonds, Series 2008D dated November 4, 2008 as described fully under
"AUTHORITY AND PURPOSE" herein.
o .s
:o The Bonds and the interest thereon shall be payable solely and only out of the Net Revenues (defined herein) of the City's
„ .,3 municipal water utility System and from amounts on deposit in the Sinking Fund and Reserve Fund (each as defined herein). The
o � Bonds are not payable in any manner by taxation, and the Issuer shall not be liable by reason of the failure of the Net Revenues to
C O .4
5 be sufficient for the payment of the Bonds. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS" herein.
w ; The Bonds will be issued as fully registered Bonds without coupons and, when issued, will be registered in the name of Cede & Co., as
onominee of The Depository Trust Company ("DTC"). DTC will act as securities depository for the Bonds. Individual purchases may be
made in book -entry form only, in the principal amount of $5,000 and integral multiples thereof. Purchasers will not receive certificates
s - 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 City's Registrar/Paying Agent,
N UMB Bank, n.a. of West Des Moines, Iowa (the "Registrar"). DTC will in turn remit such principal and interest to its participants for
subsequent disbursements to the beneficial 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 151 day of the month preceding
rF a said interest payment date (the "Record Date").
o��
� THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
V O
6 .
w Series 2021 C Bonds
MINIMUM BID: $3,690,240
o GOOD FAITH DEPOSIT: 1 % (Required of Purchaser Only)
N TAX MATTERS: Federal: Tax -Exempt
p U d
State: Taxable
.0 8 o See "TAX MATTERS" section for details.
3 The Bonds are offered for delivery, when, as and if issued and subject to the legal opinion of Ahlers & Cooney, P.C., Bond Counsel, of
Des Moines, Iowa, to be furnished upon delivery of the Bonds. The Bonds will be available for delivery through DTC in New York, New
b 20 5 York, on or about August 18, 2021. This Preliminary Official Statement will be further supplemented by offering prices, interest rates,
2 2, aggregate principal amount, principal amount per maturity, anticipated delivery date and underwriter, together with any other information
o required by law, and shall constitute a "Final Official Statement" of the City with respect to the Bonds, as defined in Rule 15c2-12.
p2
v, � y *Preliminary; subject to change.
-5 o
w b o
c V o
O
MATURITY:
CITY OF DUBUQUE, IOWA
$3,720,000* Water Revenue Refunding Bonds, Series 2021C
June 1,
Amount*
2022
$375,000
2023
395,000
2024
405,000
2025
405,000
2026
410,000
2027
420,000
2028
425,000
2029
435,000
2030
450,000
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 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
THE BONDS HAVE NOT BEEN REGISTERED WITH THE UNITED STATES SECURITIES AND
EXCHANGE COMMISSION UNDER THE SECURITIES ACT OF 1933. AS AMENDED, NOR HAS ANY
DOCUMENT BEEN QUALIFIED UNDER THE TRUST INDENTURE ACT OF 1939, AS AMENDED, IN RELIANCE
UPON EXEMPTIONS CONTAINED IN SUCH ACTS. IN MAKING AN INVESTMENT DECISION INVESTORS
MUST RELY ON THEIR OWN EXAMINATIONS OF THE CITY AND THE TERMS OF THE OFFERING. THE
BONDS HAVE NOT BEEN RECOMMENDED BY ANY FEDERAL OR STATE SECURITIES COMMISSION OR
REGULATORY AUTHORITY. FURTHERMORE, THE FOREGOING AUTHORITIES HAVE NOT CONFIRMED
THE ACCURACY OR DETERMINED THE ADEQUACY OF THIS OFFICIAL STATEMENT. ANY
REPRESENTATION TO THE CONTRARY MAY BE A CRIMINAL OFFENSE.
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
hereof. 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 City and other sources, which
are believed to be reliable, but it makes no warranty, guaranty, or other representation with respect to the accuracy or
completeness of such information. The information contained in this Official Statement is not guaranteed. 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.
Brief descriptions or summaries of the Issuer, the Bonds, the Master Resolution and the Series Resolution, and other documents,
agreements and statutes are included in this Official Statement. The summaries or references herein to the Bonds, the Master
Resolution and the Series 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.
Bond Counsel has not participated in the preparation 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 issue.
Certain statements included or incorporated by reference in this Official Statement constitute "forward -looking
statements" within the meaning of the United States Securities Exchange Act of 1934, as amended, and the United
States Securities Act of 1933, as amended. Such statements are generally identifiable by the terminology used such as "plan,"
"expect," "estimate," "anticipate," "projected," "budget" or other similar words.
THE ACHIEVEMENT OF CERTAIN RESULTS OR OTHER EXPECTATIONS CONTAINED IN SUCH
FORWARD -LOOKING STATEMENTS INVOLVE KNOWN AND UNKNOWN RISKS, UNCERTAINTIES AND OTHER
FACTORS WHICH MAY CAUSE ACTUAL RESULTS, PERFORMANCE OR ACHIEVEMENTS DESCRIBED TO BE
MATERIALLY DIFFERENT FROM ANY FUTURE RESULTS, PERFORMANCE OR ACHIEVEMENTS EXPRESSED
OR IMPLIED BY SUCH FORWARD -LOOKING STATEMENTS. NEITHER THE CITY NOR ANY OTHER PARTY
PLANS TO ISSUE ANY UPDATES OR REVISIONS TO THOSE FORWARD -LOOKING STATEMENTS IF OR WHEN
THEIR EXPECTATIONS, OR EVENTS, CONDITIONS OR CIRCUMSTANCES UPON WHICH SUCH STATEMENTS
ARE BASED OCCUR.
TABLE OF CONTENTS
CITY OF DUBUQUE, IOWA...................................................................................................................................i
DETAILS OF THE BONDS....................................................................................................................................i
PRINCIPAL ADJUSTMENT OF THE BONDS...................................................................................................... i
OPTIONAL REDEMPTION OF THE BONDS.......................................................................................................i
INTERESTON THE BONDS..................................................................................................................................i
GOODFAITH DEPOSITS.......................................................................................................................................
i
FORMOF BIDS AND AWARD.............................................................................................................................ii
RATESOF INTEREST...........................................................................................................................................ii
RECEIPTOF BIDS..................................................................................................................................................ii
BOOK -ENTRY -ONLY ISSUANCE......................................................................................................................
iii
MUNICIPAL BOND INSURANCE AT OPTION OF THE PURCHASER(S).....................................................
iii
DELIVERY..........................................................................................................................................................
iiiii
INFORMATION FROM PURCHASER(S)............................................................................................................
iv
PRELIMINARY OFFICIAL STATEMENT............................................................................................................v
CONTINUING DISCLOSURE.............................................................................................................................vvi
ELECTRONIC TRANSCRIPTS............................................................................................................................vi
CUSIPNUMBERS.................................................................................................................................................vi
EXHIBIT1...............................................................................................................................................................vii
[ISSUE PRICE CERTIFICATE IF COMPETITIVE SALE REQUIREMENTS ARE MET]...............................vii
[ISSUE PRICE CERTIFICATE IF COMPETITIVE SALE REQUIREMENTS ARE NOT MET] .......................ix
INTRODUCTION.....................................................................................................................................................1
AUTHORITYAND PURPOSE................................................................................................................................
I
SECURITY AND SOURCE OF PAYMENT FOR THE BONDS...........................................................................1
PLANOF FINANCE.................................................................................................................................................
3
OPTIONAL REDEMPTION OF THE BONDS........................................................................................................4
INTERESTON THE BONDS...................................................................................................................................4
RATING................................................................................................................... Error! Bookmark not defined.
BONDHOLDERS' RISKS........................................................................................................................................4
BOOK -ENTRY -ONLY ISSUANCE.......................................................................................................................11
FUTUREFINANCING...........................................................................................................................................13
LITIGATION...........................................................................................................................................................13
DEBT PAYMENT HISTORY.................................................................................................................................13
LEGALMATTERS.................................................................................................................................................13
TAXMATTERS......................................................................................................................................................13
ENFORCEMENT..................................................................................................................................................155
OPINION...............................................................................................................................................................156
MUNICIPALADVISOR...........................................................................................................................................16
CONTINUINGDISCLOSURE...............................................................................................................................16
SALE AT COMPETITIVE BIDDING....................................................................................................................17
AUDITED FINANCIAL STATEMENTS.............................................................................................................157
CERTIFICATION....................................................................................................................................................17
DESCRIPTION OF THE MUNICIPAL WATER SYSTEM............................................................................18
APPENDIX A: INFORMATION ABOUT THE ISSUER
APPENDIX B: FORM OF LEGAL OPINION
APPENDIX C: JUNE 30, 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX D: FORM OF CONTINUING DISCLOSURE CERTIFICATE
APPENDIX E: EXCERPTS OF THE MASTER RESOLUTION AND THE SERIES RESOLUTION
OFFICIAL BID FORM
CITY OF DUBUQUE, IOWA
Mayor and City 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 BONDS
Water Revenue Refunding Bonds, Series 2021C (the " Bonds"), in the aggregate principal amount of $3,720,000* to be
dated August 18, 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*
2022
$375,000
2023
395,000
2024
405,000
2025
405,000
2026
410,000
2027
420,000
2028
425,000
2029
435,000
2030
450,000
*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.
INTEREST ON THE BONDS
Interest on the Bonds will be payable on December 1, 2021 and semiannually on the Pt 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 151}i 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
A Good faith deposit in the amount of $37,200 (the "Deposit") is 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 City.
FORM OF BIDS AND AWARD
All bids shall be unconditional for each series of the Bonds for a price not less than $3,690,240, 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 DEPOSIT" 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.
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 Bidding: Sealed bids may be submitted and will be received at the City Hall, 50 West 13t" Street, Dubuque, Iowa 52001.
Electronic Internet Bidding: 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.
ii
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 Bidding: 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 Advisor (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.
1 IZI] ►d IIL1Y__Y_MI&OBI S IR111-11-[yJ
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)
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 City 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 City 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 liability for the Bonds will cease. When the Bonds are ready for delivery,
the City will give the Purchaser(s) five working days notice of the delivery date and the City 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.
in
INFORMATION FROM PURCHASER(S)
The Purchaser shall assist the City in establishing the issue price of the 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 the Bonds, together with the supporting pricing wires or equivalent communications,
substantially in the form attached hereto as "EXHIBIT 1 - FORMS OF ISSUE PRICE CERTIFICATES" to the "TERMS
OF OFFERING", with such modifications as may be appropriate or necessary, in the reasonable judgment of the Purchaser,
the City and Bond Counsel. All actions to be taken by the City under the "TERMS OF OFFERING" to
establish the issue price of the Bonds may be taken on behalf of the City by the Municipal Advisor identified herein and
any notice or report to be provided to the City may be provided to the Municipal Advisor.
The City intends the provisions of Treasury Regulation Section 1. 148-1 (f)(3)(i) (defining "competitive sale" for purposes
of establishing the issue price of the Bonds) will apply to the initial sale of the Bonds (the "competitive sale requirements")
because (i) the City shall disseminate this "TERMS OF OFFERING" to potential underwriters in a manner that is reasonably
designed to reach potential underwriters, (ii) all bidders shall have an equal opportunity to bid, (iii) 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 (iv) the City anticipates awarding the sale of the Bonds to the bidder who submits a firm
offer to purchase the Bonds at the highest price (or lowest interest cost), as set forth in the "TERMS OF OFFERING".
Any bid submitted pursuant to the "TERMS OF OFFERING" shall be considered a firm offer for the purchase of the
Bonds, as specified in the bid.
In the event the competitive sale requirements are not satisfied, the City shall so advise the Purchaser. The City may, as
set forth below, determine to treat (i) the first price at which 10% of a maturity of the Bonds (the "10% test") is sold to the
public as the issue price of that maturity, and/or (ii) the initial offering price to the public as of the sale date of any maturity
of the Bonds as the issue price of that maturity (the "hold -the -offering -price rule"), in each case applied on a maturity -by
maturity basis (and if different interest rates apply within a maturity, to each separate CUSIP number within that maturity).
The Purchaser shall advise the City if any maturity of the Bonds satisfies the 10% test as of the date and time of the award
of the Bonds. The City shall promptly advise the Purchaser, at or before the time of award of the Bonds, which maturities
(and if different interest rates apply within a maturity, which separate CUSIP number within that maturity) of the Bonds, if
any, shall be subject to the 10% test and which shall be subject to the hold -the -offering -price rule. Bids will not be subject
to cancellation in the event the City determines to apply the hold -the -offering -price rule to any maturity of the Bonds.
Prospective bidders should prepare their bids on the assumption that some or all of the maturities of the
Bonds will be subject to the hold -the -offering -price rule in order to establish the issue price of the Bonds.
By submitting a bid, the Purchaser shall (i) confirm the underwriters have offered or will offer the Bonds to the public on
or before the date of award at the offering price or prices (the "initial offering price") or at the corresponding yield or
yields set forth in the bid submitted by the Purchaser, and (ii) agree on behalf of the underwriters participating in the
purchase of the Bonds that the underwriters will neither offer nor sell unsold Bonds of any maturity to which the hold -the
offering -price rule shall apply to any person at a price that is higher than the initial offering price to the public during the
period starting on the sale date and ending on the earlier of the following: (a) the close of the fifth (5th) business day after
the sale date, or (b) the date on which the underwriters have sold at least 10% of that maturity of the Bonds to the public at
a price that is no higher than the initial offering price to the public.
The Purchaser shall promptly advise the City when the underwriters have sold 10% of that maturity of the Bonds to the
public at a price that is no higher than the initial offering price to the public, if that occurs prior to the close of the fifth
(5th) business day after the sale date.
The City acknowledges that, in making the representation set forth above, the Purchaser of the Bonds will rely on (i) the
agreement of each underwriter to comply with the hold -the -offering -price rule, as set forth in an agreement among
underwriters and the related pricing wires, (ii) in the event a selling group has been created in connection with the initial
sale of the Bonds to the public, the agreement of each dealer who is a member of the selling group to comply with the
hold -the -offering -price rule, as set forth in a selling group agreement and the related pricing wires, and (iii) in the event,
1v
an underwriter is a party to a retail distribution agreement that was employed in connection with the initial sale of the
Bonds to the public, the agreement of each broker -dealer that is a party to such agreement to comply with the hold -the
offering- price rule, as set forth in the retail distribution agreement and the related pricing wires. The City further
acknowledges that each underwriter shall be solely liable for its failure to comply with its agreement regarding the hold the -
offering -price rule and that no underwriter shall be liable for the failure of any other underwriter, or of any dealer who is a
member of a selling group, or of any broker -dealer that is a party to a retail distribution agreement to comply with its
corresponding agreement regarding the hold -the -offering -price rule as applicable to the Bonds.
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 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 (a) report the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by
the Purchaser that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity have
been sold to the public, and (b) comply with the hold -the -offering -price rule, if applicable, in each case if and for so long as
directed by the Purchaser and as set forth in the related pricing wires, and (ii) any agreement among underwriters relating
to the initial sale of the Bonds to the public, together with the related pricing wires, contains or will contain language
obligating each underwriter that is a party to a retail distribution agreement to be employed in connection with the initial
sale of the Bonds to the public to require each broker -dealer that is a party to such retail distribution agreement to (a) report
the prices at which it sells to the public the unsold Bonds of each maturity allotted to it until it is notified by the Purchaser
or such underwriter that either the 10% test has been satisfied as to the Bonds of that maturity or all Bonds of that maturity
have been sold to the public, and (b) comply with the hold -the -offering -price rule, if applicable, in each case if and for so
long as directed by the Purchaser or such underwriter and as set forth in the related pricing wires.
Sales of any 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", (i) "public" means any person
other than an underwriter or a related party, (ii) "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 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 Bonds to the public (including a member of a selling group or a parry to
a retail distribution agreement participating in the initial sale of the Bonds to the public), (iii) a purchaser of any of the
Bonds is a "related party" to an underwriter if the underwriter and the Purchaser are subject, directly or indirectly, to (a) at
least 50% 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), (b) more than 50% common ownership of their capital interests or profits
interests, if both entities are partnerships (including direct ownership by one partnership of another), or (c) 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 (iv) "sale date" means the date the Bonds are awarded by
the City to the Purchaser.
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 after 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 Issuer 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. In addition, certain Assessed Valuation operating data may not be in the same format as the original
Official Statements for certain filing years. For certain fiscal years, ahead of the audit filing deadline the Issuer filed
unaudited financial statements which contained financial information as found in the audit, but which may not be in a format
similar to the audit, and may not have included a notice that the audits would be filed when available. The audits were
subsequently filed but may not have been filed immediately after they became available.
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 thereof. 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 13' Street
Dubuque, IA 52001
vi
EXHIBIT 1
[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 -captioned obligations (the "Bonds").
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 "Expected 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 constituted a firm offer to purchase the Bonds.
2. Defined Terms.
(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, association, company, or corporation)
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 July 19, 2021.
(d) Underwriter 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
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 certificate are limited to factual matters only. Nothing in this certificate 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 from time to time relating to the Bonds.
Dated:
vii
PURCHASER
By:
Name:
SCHEDULE A
EXPECTED OFFERING PRICES
(Attached)
SCHEDULE B
COPY OF UNDERWRITER'S BID
(Attached)
vm
EXHIBIT A
[ISSUE PRICE CERTIFICATE IF COMPETITIVE SALE REQUIREMENTS ARE NOT MET]
PURCHASER'S CERTIFICATE
The undersigned, on behalf of [NAME OF UNDERWRITER] ("Purchaser"), on behalf of itself, hereby certifies as set forth
below with respect to the sale and issuance of the above -captioned obligations (the "Bonds").
1. Sale of the General Rule Maturities. As of the date of this certificate, for each Maturity of the General Rule
Maturities, the first price at which at least 10% of such Maturity was sold to the Public is the respective price listed in Schedule A.
Initial Offering Price of the Hold -the -Offering -Price Maturities.
(a) Purchaser offered the Hold -the -Offering -Price Maturities to the Public for purchase at the respective initial offering
prices listed in Schedule A (the "Initial Offering Prices") on or before the Sale Date. A copy of the pricing wire or equivalent
communication for the Bonds is attached to this certificate as Schedule B.
(b) As set forth in the Notice of Sale and bid award, Purchaser has agreed in writing that, (i) for each Maturity of the
Hold -the -Offering -Price Maturities, it would neither offer nor sell any of the Bonds of such Maturity to any person at a price that is
higher than the Initial Offering Price for such Maturity during the Holding Period for such Maturity (the "hold -the -offering -price rule"),
and (ii) any selling group agreement shall contain the agreement of each dealer who is a member of the selling group, and any retail
distribution agreement shall contain the agreement of each broker -dealer who is a party to the retail distribution agreement, to comply
with the hold -the -offering -price rule. Pursuant to such agreement, no Underwriter (as defined below) has offered or sold any Maturity
of the Hold -the -Offering -Price Maturities at a price that is higher than the respective Initial Offering Price for that Maturity of the Bonds
during the Holding Period.
Defined Terms.
(a) General Rule Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "General Rule
Maturities."
(b) Hold -the -Offering -Price Maturities means those Maturities of the Bonds listed in Schedule A hereto as the "Hold -the -
Offering -Price Maturities."
(c) Holding Period means, with respect to a Hold -the -Offering -Price Maturity, the period starting on the Sale Date and
ending on the earlier of (i) the close of the fifth business day after the Sale Date, or (ii) the date on which Purchaser has sold at least
10% of such Hold -the -Offering -Price Maturity to the Public at prices that are no higher than the Initial Offering Price for such Hold -
the -Offering -Price Maturity.
(d) Issuer means Dubuque, Iowa, a municipal corporation in the State of Iowa.
(e) 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.
(f) 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 party" for purposes of this certificate generally means
any two or more persons who have greater than 50 percent common ownership, directly or indirectly.
(g) 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 July 19, 2021.
(h) Underwriter 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 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 certificate are limited to factual matters only. Nothing in this certificate represents the
Purchaser's interpretation of any laws, including specifically Sections 103 and 148 of the Internal Revenue Code of 1986, as amended,
ix
and the Treasury Regulations thereunder. The undersigned understands that the foregoing information will be relied upon by the Issuer
and its agents with respect to certain of the representations set forth in the Tax Exemption Certificate and with respect to compliance
with the federal income tax rules affecting the Bonds, and by Ahlers & Cooney, P.C., 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 from time to time relating to the Bonds.
[UNDERWRITER]
By:
Name:
Dated: [ISSUE DATE]
x
SCHEDULE A
SALE PRICES OF THE GENERAL RULE MATURITIES AND
INITIAL OFFERING PRICES OF THE HOLD -THE -OFFERING -PRICE MATURITIES
(Attached)
SCHEDULE B
PRICING WIRE OR EQUIVALENT COMMUNICATION
xi
CITY OF DUBUQUE, IOWA
PRELIMINARY OFFICIAL STATEMENT
$3,720,000* Water Revenue Refunding Bonds, Series 2021C
INTRODUCTION
This Official Statement contains information relating to the City of Dubuque, Iowa (the "City") and its issuance of
$3,720,000* Water Revenue Refunding Bonds, Series 2021C (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 will 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 13th Street, Dubuque,
Iowa 52001, or by telephoning 563-589-4110.
AUTHORITY AND PURPOSE
The Bonds are being issued pursuant to Chapter 384 of the Code of Iowa, a Master Resolution (the "Master Resolution")
approved by the City Council of the City of Dubuque, Iowa (the "City") on October 20, 2008, and a 2021 C Series Resolution
(the "Series Resolution") to be approved by the City on August 2, 2021. Proceeds of the Bonds will be used to current refund,
on August 19, 2021, outstanding revenue obligations of the City, including Water Revenue Bonds, Series 2010D dated
September 21, 2010, and Water Revenue Bonds, Series 2008D dated November 4, 2008.
The Bonds are revenue bonds secured by and payable as provided in the Master Resolution approved by the City in 2008
(described herein) and the Series Resolution authorizing issuance of the Bonds from Net Revenues (hereinafter defined) of the
System (hereinafter defined), which pursuant to the Master Resolution are pledged to the prompt payment of the principal of
and interest on all Senior Bonds; provided, however, that the pledge of the Net Revenues to any Subordinate Bond shall be
junior and subordinate in lien and right of payment to the Bonds.
SECURITY AND SOURCE OF PAYMENT FOR THE BONDS
THE BONDS AND THE INTEREST THEREON ARE PAYABLE SOLELY AND ONLY FROM THE NET
REVENUES OF THE SYSTEM. THE BONDS AND THE INTEREST THEREON SHALL NOT CONSTITUTE A
GENERAL OR MORAL OBLIGATION OF THE CITY, NOR A DEBT, INDEBTEDNESS, OR OBLIGATION OF
THE CITY OR ANY POLITICAL SUBDIVISION THEREOF WITHIN THE MEANING OF ANY
CONSTITUTIONAL, STATUTORY OR CHARTER PROVISION WHATSOEVER. NO TAXING POWER OF THE
CITY IS PLEDGED TO THE PAYMENT OF THE PRINCIPAL OF, PREMIUM, IF ANY, OR INTEREST ON THE
BONDS OR OTHER COSTS INCIDENT THERETO. NEITHER THE MEMBERS OF THE GOVERNING BODY
NOR ANY PERSON EXECUTING THE BONDS SHALL BE LIABLE PERSONALLY ON THE BONDS BY
REASON OF THE ISSUANCE THEREOF.
Master Resolution
The Master Resolution establishes a System Revenue Fund, Operation and Maintenance Fund, Bond Principal and Interest
Fund (sometimes also hereinafter referred to as the "Sinking Fund"), Debt Service Reserve Fund, Rebate Fund, Subordinate
Bond Fund (while Subordinate Bonds are outstanding) and Surplus Fund. Gross Revenues shall be deposited as received into
the Revenue Fund and applied as follows: first, to pay amounts sufficient for the payment of current Operation and Maintenance
Expenses; second, to pay such amounts as are required pursuant to the Master Resolution to pay principal and interest on the
outstanding Senior Bonds, including Senior SRF Bonds; third, to pay such amounts as are required by the Master Resolution
and the Series Resolution to fund the Debt Service Reserve Fund; fourth, to transfer such amounts as are required pursuant to
the Master Resolution to fund the Rebate Fund; fifth, to transfer such amounts as are required by the Master Resolution to fund
the Subordinate Bond Fund; and sixth, to make deposits to the Surplus Fund. See herein "EXCERPTS FROM THE MASTER
RESOLUTION AND THE SERIES RESOLUTION" included in APPENDIX E to this Official Statement for additional
information.
Master Resolution - Senior Bonds and Subordinate Bonds
The Master Resolution authorizes the City to issue additional bonds thereunder which may be either "Senior Bonds" or
"Subordinate Bonds", subject to certain requirements of the Master Resolution. All additional Senior Bonds issued pursuant
to the Master Resolution shall have complete parity of lien on the Net Revenues of the System. The Bonds are being issued as
Senior Bonds. The City may also issue Subordinate Bonds if the conditions of the Master Resolution are met. See "EXCERPTS
FROM THE MASTER RESOLUTION AND THE SERIES RESOLUTION" included in APPENDIX E to this Official
Statement for a discussion of the requirements that must be satisfied under the Master Resolution prior to the issuance of
additional bonds thereunder.
Series Resolution for the Bonds
The Series Resolution for the Bonds authorizes the City to issue the Bonds for the purpose of providing funds to pay costs to
current refund, on August 19, 2021, $215,000 of the outstanding Water Revenue Bonds, Series 2008D, dated November 4,
2008 and $3,610,000 of the outstanding Water Revenue Bonds, Series 2010D dated September 21, 2010 (the "Refunded
Bonds"). In addition, the Series Resolution for the Bonds provides the terms for the optional redemption of the Bonds and
specifies language regarding how the Debt Service Reserve Fund may be calculated.
Debt Service Reserve Fund
The Master Resolution provides that money in the Revenue Fund shall be disbursed to maintain a debt service reserve in an
amount equal to the Debt Service Reserve Fund Requirement. Such fund shall be known as the Debt Service Reserve Fund
(the "Reserve Fund"). Money in the Reserve Fund shall be used solely for the purpose of paying principal at maturity of or
interest on the Senior Bonds (excluding Senior SRF Bonds) for the payment of which insufficient money shall be available in
the Sinking Fund. After the issuance of any Senior Bonds, the increase in the amount of the Debt Service Reserve Requirement
resulting from the issuance of such Senior Bonds shall be accumulated, to the extent not covered by deposits from Bond
proceeds or funds on hand, over a period not exceeding 61 months from the date of delivery of such Senior Bonds in monthly
deposits ("Accumulation Payments"), none of which is less than 1/60 of the amount to be accumulated. The balance of the
Debt Service Reserve Fund shall be maintained at an amount equal to the Debt Service Reserve Requirement (or such lesser
amount that is required to be accumulated in the Debt Service Reserve Fund in connection with the periodic accumulation to
the Debt Service Reserve Requirement after the issuance of Senior Bonds). Whenever it shall become necessary to so use
money in the Reserve Fund, the payments required above shall be continued or resumed until it shall have been restored to the
required minimum amount. At closing the Issuer will deposit $ from the existing Reserve Fund for the Refunded
Bonds to meet the Reserve Fund Requirement. See "EXCERPTS FROM THE MASTER RESOLUTION AND THE SERIES
RESOLUTION" included in APPENDIX E to this Official Statement for additional information.
0a
Sufficiency of Rates
The Code provides when revenue obligations are issued and outstanding, the governing body shall establish, impose, adjust
and provide for the collection of rates to produce gross revenues at least sufficient to pay the expenses of operation and
maintenance of the System and to leave a balance of Net Revenues sufficient to pay the principal and interest on the obligations
as they become due. The City has covenanted in the Master Resolution to continuously own, control, operate, and maintain
the System in an efficient and economical manner and on a revenue producing basis and shall at all times prescribe, fix,
maintain and collect rates, fees and other charges for the services and facilities furnished by the System that are fully sufficient
at all times to (a) provide for 100% of the budgeted Operation and Maintenance Expenses and for the accumulation in the
Revenue Fund of a reasonable reserve therefor; and (b )produce Net Revenues in each Fiscal Year which: (a) will equal at least
125% of the Debt Service Requirement on all Senior Bonds then Outstanding for the year of computation; (b) will enable the
Issuer to make all required payments, if any, into the Debt Service Reserve Fund and the Rebate Fund; (c) will enable the
Issuer to accumulate an amount which, in the judgment of the Governing Body, is adequate to meet the costs of major renewals,
replacements, repairs, additions, betterments, and improvements to the System, necessary to keep the same in good operating
condition or as is required by any governmental agency having jurisdiction over the System; and (d) will remedy all deficiencies
in required payments into any of the funds and accounts established under the Master Resolution from prior Fiscal Years.
PLAN OF FINANCE
The following bonds (the "Refunded Bonds") are being refunded by the Bonds. The Refunded Bonds are being called on
August 19, 2021 at a call price of 100%.
Bond Maturity Interest Rate Par Amount
(June 1)
Water Revenue Bonds,
2008D
2022
4.950%
105,000.00
2023
5.000%
110,000.00
215,000.00
Water Revenue Bonds,
Series 201OD:
2022
3.250%
250,000.00
2023
3.500%
260.000.00
2024
3.500%
390,000.00
2025
3.500%
405.000.00
2026
4.000%
420.000.00
2027
4.000%
440.000.00
2028
4.000%
460.000.00
2029
4.000%
480.000.00
2030
4.000%
505,000.00
3,610,000.00
TOTAL
3,825,000.00
The estimated Sources and Uses of the Bonds are as follows:
Par Amount* $3,720,000*
Existing Reserve Fund $567,025
Uses of Funds
Reserve Fund $-
Capitalized Interest Fund $-
Redemption $-
Underwriter's Discount $-
Cost of Issuance & $-
Rounding
Total $3,720,000.00*
*Preliminary; subject to change.
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.
INTEREST ON THE BONDS
Interest on the Bonds will be payable on December 1, 2021 and semiannually on the Ist 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.
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 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. NO REPRESENTATION OR
ASSURANCE CAN BE MADE THAT NET REVENUES WILL BE REALIZED IN AMOUNTS SUFFICIENT TO
4
PAY MATURING PRINCIPAL OF AND INTEREST ON THE BONDS
A number of factors could prevent the receipt of or reduce the amount of available Net Revenues for payment of debt service
on the Bonds, including, but not limited to, the failure by certain users to pay their bills when and as due. The ability of the
Issuer to generate sufficient Net Revenues is dependent upon a number of conditions and risk factors that are unpredictable
including general economic conditions. 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.
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, including the Municipal Water Utility, did not experience material reductions in revenue or material increases in
expenses in fiscal year 2020 due to COVID-19. As to the City generally, 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- 1 9-related financial impacts the City 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 in fiscal year 2021
or beyond. The spread of the virus could negatively affect the System's financial condition, including, among others, slower or
decreased water bill payments, decreased economic activity and therefore water usage, and other unpredicted unforeseen
consequences, which may affect the City's ability to pay principal of and interest on the Bonds. The Bonds are secured solely
by Net Revenues of the System. See "SECURITY AND SOURCE OF PAYMENT FOR THE BONDS" herein.
Limited Obligation: .
The obligation of the City to pay debt service on the Bonds is a special limited obligation of the City. The full faith and credit
and taxing powers of the City are not pledged to pay debt service on the Bonds and the City does not have the authority to levy
ad valorem property taxes without limit in order to pay debt service on the Bonds. As further described elsewhere herein, debt
service on the Bonds is payable solely from Net Revenues derived from the System and amounts on deposit in the Debt Service
Reserve Fund. While it is believed that Net Revenues of the System will be sufficient to pay debt service on the Bonds when
due, a number of other factors described below, or factors not presently anticipated, may affect the receipt of sufficient revenues
from the System for such purposes.
General Factors that May Affect Sufficiency of Net Revenues:
The City is obligated to pay debt service on the Bonds solely from Net Revenues generated by the operation of the System and
from amounts on deposit in the Debt Service Reserve Fund. A number of factors may have an adverse effect on the receipt of
monies in an amount sufficient to pay operating and maintenance expenses of the System as well as debt service on the Bonds.
These include potential adverse changes in the economic condition of the City or the water utility, including increased operation
and maintenance costs, adverse demographic changes in the City's service area, reduction in consumption patterns by customers,
a decrease in financial means by which customers pay their bills. potential decreases in population that may arise from decisions
by employers located in and around the City to relocate their operations elsewhere; periodic fluctuations in demand due to
weather conditions; potential unemployment at a level that would preclude residents of the City from paying sufficient user fees
in order to support the operations of the water utility and the payment of debt service on the Bonds; and increased emphasis on
and adoption by the general population of conservation measures; and increased regulatory or environmental costs, that cannot
be foreseen at this time. The loss of any of the major users may also have an adverse impact on the Net Revenues of the System.
See APPENDIX A - "INFORMATION ABOUT THE MUNICIPAL WATER SYSTEM" attached hereto.
Unforeseen increases in maintenance and operating expenses may also have an adverse impact on the Net Revenues of the
System. Factors affecting such expenses include increased costs of equipment and labor. The City believes that it has made a
reasonable projection of and allocation for maintenance and operating costs in setting its rates and charges, but no assurance
can be given that actual costs will not exceed cost projections.
The City's covenants with respect to sufficiency of rates as set forth under the heading "Sufficiency of Rates" herein is a
prospective covenant to set rates sufficient to produce Net Revenues for the next succeeding Fiscal Year adequate to pay
principal and interest requirements and create reserves as provided in the Bond Resolution but not less than 125 percent of the
principal and interest requirements of the Fiscal Year (the "City's Rate Covenant"). The City's Rate Covenant does NOT
require the City to maintain historical Net Revenues of at least 125 percent of the principal and interest requirements of the
applicable Fiscal Year. Provided the City adopts or continues in effect sufficient rates to meet this covenant, the City will not
be in default under the City's Rate Covenant even if historical Net Revenues for such Fiscal Year are less than 125 percent of
the principal and interest requirements for such Fiscal Year.
Unforeseen Problems with the Utility.
Payment of principal of and interest on the Bonds is dependent to a considerable degree upon the continued operation of the
System for the purposes for which it was designed. While the City believes that the System has been designed and will be
maintained in such a manner as to permit continued operation without requiring unreasonable costs for maintenance or repairs,
and while they have provided under the terms of the Master Resolution for the creation and maintenance of funds in amounts
which they believe to be sufficient to provide for the necessary repairs and maintenance of the System, there can be no assurance
that such amounts will, in fact, be sufficient to assure the ongoing operation of the System. Although the water utility is covered
by policies of insurance, casualties and other occurrences may result in damage to the System, which may not be covered by
the net proceeds of any insurance award. Any material interruption of the operation of the water utility may have an adverse
effect on the ability of the City to collect fees from users of the System and could, in turn, have a materially adverse effect on
the ability of the City to make timely payment of debt service on the Bonds.
Additional Debt:
Upon the satisfaction of certain conditions set forth in the Master Resolution, the City may issue additional bonds for the purpose
of financing improvements or modifications to the System, which would be equally and ratably secured with the Bonds by the
Net Revenues of the System. The City may also issue Subordinated Obligations and other additional bonds not secured by the
Master Resolution and the specifically pledged Net Revenues of the System, but payable from other revenues of the City. Such
other additional bonds may be issued for any purpose permitted by law, including acquisition and construction of additional
capital systems to the System.
Natural Disaster:
The System is subject to interruption and loss of business in the event of a disaster, such as a windstorm, fire, explosion, sabotage
and other events not now foreseen.
Nature of Debt Service Coveraize:
Certain historical net operating income and other financial information for the Issuer, including historical debt service coverage,
are included in this Official Statement in "APPENDIX A — INFORMATION ABOUT THE MUNICIPAL WATER SYSTEM."
The coverage is merely a mathematical computation as reflected in the applicable tables, and constitutes no assurance as to the
future debt of the Issuer or the sufficiency of Net Revenues to satisfy operating costs of the System and other debt service
requirements.
Environmental Protection Cost and Regulations:
The City believes it meets all environmental requirements. In the future, however, environmental protection agencies could
adopt more stringent and costly pollution control measures, which would require additional capital and cause added operation
and fuel expenses.
The water utility is subject to state and federal environmental laws and regulations. The laws and regulations governing entities
such as the System may require the System to expend substantial funds to meet the requirements of such changings laws and
regulations in the future. Failure to comply with these laws and regulations may result in the imposition of administrative, civil
and criminal penalties, or an injunction requiring the City to take or refrain from taking certain actions. In addition,
environmental laws and regulations are complex and change frequently and it is possible that new on stricter standards could
be imposed that will require additional capital expenditures or raise operating costs. In addition, failure to comply with
regulatory changes, or the inability to comply with regulatory changes, in a timely manner could cause portions of the System
to become unavailable resulting in a loss of or disruption of services negatively impacting Net Revenues.
Revenues and Expenses:
Several factors not within the control of the City could affect its ability to generate sufficient Net Revenues to pay the debt
service on the Bonds. These factors include, but are not limited to, inflation and adverse economic conditions, increases in
operation and maintenance costs, unexpected repairs, replacements or improvements to the System and the ability of the City
to supply the services demanded and to maintain necessary rates for those services. Any one of the above factors, among others,
individually or combined may cause the System to be unable to generate sufficient Net Revenues to pay debt service on the
Bonds.
Federal Funds Orders, and State Funds Legislation:
Various federal executive orders, and a law (SF 481) recently enacted in Iowa which becomes and 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. Rules to administer SF481 in Iowa have yet to be drafted became effective
December 26, 2018. The loss of state and/or federal funds in any significant amount could negatively impact the Issuer's overall
financial position and may affect its rating. However, the Bonds are not secured by state or federal funds. Rather the Bonds
are secured by a pledge of the Net Revenues of the Water System, as described more fully herein. Iowa Code section 384.84
requires the Issuer to "establish, impose, adjust, and provide for the collection of rates to produce gross revenues at least
sufficient to pay the expenses of operation and maintenance of the city utility ..., and to leave a balance of net revenues sufficient
to pay the principal of and interest on the revenue bonds and pledge orders as they become due and to maintain a reasonable
reserve for the payment of principal and interest, and a sufficient portion of net revenues must be pledged for that purpose."
Rating
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 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.
Changes in Secondary Market Conditions:
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. It is possible, because of general market conditions, changes in the financial condition of
the City or water utility or because of adverse history of economic prospects connected with a particular issue, secondary
marketing practices in connection with a particular bond issue may be suspended or terminated. Additionally, prices of issues
for which a market is being made will depend upon then prevailing market 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.
Bankruptcy
The rights and remedies provided in the Resolution 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 Resolution, including the opinion of Bond Counsel, will be similarly qualified. If
the City were to file a petition under Chapter 9 of the Bankruptcy Code, the owners of the Bonds could be prohibited from
taking any steps to enforce their rights under the Resolution. In the event the City fails to comply with its covenants under the
Resolution 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," "pro forma,"
"forecast," "projected," "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 City to pay debt service when due on the Bonds.
Cybersecurity:
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 networks 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.
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.
Suitabilitv 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.
Chances in Legislation:
The future financial condition of the System and its ability to earn sufficient Net Revenues could be adversely affected by
legislative, environmental and other regulatory actions, to the extent such changes are material and adversely alter the current
operation environment for the System. The City cannot and does not make any predictions about such future legislative or
regulatory changes, other than to note that any number of possible changes may adversely affect the operation of the System.
Loss of Tax Exemption:
As discussed under the heading "TAX MATTERS" herein, the interest on the Bonds could become includable in gross income
for purposes of federal income taxation retroactive to the date of delivery of the Bonds, as a result of acts or omissions of the
City in violation of its covenants in the resolutions authorizing issuance of the Bonds. Should such an event of taxability occur,
the 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 Bonds, and there is no provision for an adjustment of the interest rate on the Bonds. It
is also possible that actions of the City after the closing of the Bonds will alter the tax status of the Bonds, and, in the extreme,
remove the tax-exempt status from the Bonds. In that instance, the Bonds are not subject to mandatory prepayment, and the
interest rate on the Bonds does not increase or otherwise reset. A determination of taxability on the Bonds, after closing of the
Bonds, could materially adversely affect the value and marketability of the Bonds.
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 City 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."
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.
Proposed Federal Tax Leeislation:
From time to time, Presidential proposals, federal 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 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.
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 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 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.
fff
Summary:
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.
IZI] ;d II�Y__Y_.7`QI]�I r1`/ F.XYII�[yJ
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 DTC's 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 York, 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, except in the event that
use of the book -entry system for the Securities is discontinued.
11
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 City
IV)
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 water revenue 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 thereof.
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 OPINION 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.
TAX MATTERS
Federal Tax Matters with Respect to the Bonds
Tax Exemptions and Related Considerations: Federal tax law contains a number of requirements and restrictions that apply to
the 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 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
Bonds to become includable in gross income for federal income tax purposes retroactively to the date of issuance of the Bonds.
Subject to the City's compliance with the above referenced covenants, under present law, in the opinion of Bond Counsel,
interest on the 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 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
13
Bonds should consult their tax advisors as to collateral federal income tax consequences.
Not Qualified Tax -Exempt Obligations: The City will NOT designate the 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 Accounting Treatment of Discount and Premium on Certain Bonds: The initial public offering price of certain 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 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
additional tax consequences of the acquisition, ownership, and disposition of the 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 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 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 Bonds until the audit is concluded, regardless of the ultimate outcome.
Withholdings: Payments of interest on, and proceeds of the sale, redemption or maturity of, tax-exempt obligations, including
the 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 Identification 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 Bonds to be subject, directly or indirectly, to federal
income taxation, or otherwise prevent owners of the 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
Bonds. Prospective purchasers of the 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.
14
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.
State of Iowa Tax Matters
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 Bonds from realizing the full benefit of the tax exemption of interest on the
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 Series Resolution authorizing issuance of the Bonds. There is no bond trustee or
similar person to monitor or enforce the terms of Series Resolution or the Master Resolution. 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 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 remedies available to the owners of the Bonds upon an event of
default under the Master Resolution, 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
Master 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 opinion to be delivered concurrently with the delivery of the Bonds
15
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, 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 Master Resolution and the Series Resolution, 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.
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.
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 ADVISOR
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.
10
Within the last five years, the Issuer 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. In addition,
certain Assessed Valuation operating data may not be in the same format as the original Official Statements for certain filing
years. For certain fiscal years, ahead of the audit filing deadline the Issuer filed unaudited financial statements which contained
financial information as found in the audit, but which may not be in a format similar to the audit, and may not have included a
notice that the audits would be filed when available. The audits were subsequently filed but may not have been filed immediately
after they became available.
SALE AT COMPETITIVE BIDDING
The Bonds were offered for sale by the City at a public, competitive sale on July 19, 2021. The best bid submitted at the sale
was submitted by (the "Underwriter"). The City awarded the contract for sale of the Bonds to the 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 Official 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 $3,720,000* Water Revenue Refunding Bonds, Series 2021C.
*Preliminary; subject to change.
17
CITY OF DUBUQUE, IOWA
/s/ Jenny Larson, Director of Finance & Budget
DESCRIPTION OF THE MUNICIPAL WATERWORKS SYSTEM
THE WATERWORKS SYSTEM
The City provides water service to all developed portions of the City within the corporate limits and to several subdivisions
outside of the corporate limits. The City Council has complete authority to establish rates and charges for water service.
Management of the Municipal Water System, Dubuque Water Works, is under the direction of the City Manager and is
supported by a professional staff.
Raw water is drawn from four deep wells (total capacity of 6 million gallons per day (MGD) and five shallow wells (total
capacity of 12 MGD) and is pumped to the Eagle Point Water Plant at 1902 Hawthorne Street.
The treatment process (rated total capacity of 13.1 MGD) consist of the following steps: aeration, lime softening of the
water down to 100 mg/1 hardness (as CaCO3), recarbonation, sand filtration, chlorination, and fluoridation. The treated
water is then introduced into the distribution system from two underground reservoirs (1.75 million gallon storage
capacity) at the necessary rate, quality, and pressure levels to meet the needs of the City.
The distribution storage system consists of four elevated tanks, four stand pipes, and one underground reservoir (total
storage capacity of 17.85 million gallons) and eight pump stations (total pumping capacity 11.7 MGD). This activity is
located at the Eagle Point Water Plant and is staffed by a Department Manager and 9 operation and maintenance
employees.
IEi
RATES AND CHARGES
Ordinance No.6-21 effective July 1, 2011, establishes rates to be charged for water for residential, commercial, industrial
and all other uses and purposes by any person, firm or corporation within the City shall be based on units of one -hundred
cubic feet (748 gallons) or per gallon as follows:
Monthly Consumption Charge per
(in Gallons)
Gallon
First 22,440
$0.00527
Next 89,760
$0.00432
Next 261,800
$0.00403
Next 374,000
$0.00355
Next 748,000
$0.00311
Rates shall be subject to the following minimum monthly charge according to the size of the meter:
Meter Size
Inches
Monthly Consumption
(In Gallons)
Minimum Chat
5/8
1,496
$7.88
3/4
3,740
19.71
1
5,984
31.54
1 1 /2
19,448
102.49
2
34,408
169.96
3
79,288
363.84
4
125,664
560.28
6
275,264
1,163.17
8
467,500
1,893.00
A property owner shall pay a $50.00 disconnect fee for water service that is disconnected by the city for a meter
not in service. When a tenant account is subject to disconnection due to delinquency, the tenant shall pay the
$50.00 disconnect fee.
A $7.21 minimum monthly charge shall be assessed for meters not in service.
NUMBER OF WATER CUSTOMERS
Number of Water
Fiscal Year
Customers
2015/16
23,317
2016/17
23,780
2017/18
22,715
2018/19
22,898
2019/20
24,034
19
LARGER WATER CUSTOMERS (FY 2019/20)
Percent of Total
Customer
Charges
Water Charges
Rousselot Inc.
$390,478
3.50%
Prairie Farms Dairy Inc
218,443
1.96%
Hormel Foods Corporation*
163,328
1.46%
Hormel Foods Corporation*
157,032
1.41%
Alpine Park Community
47,996
0.43%
Finely Hospital
47,717
0.43%
Stonehill Nursing Home
45,411
0.41%
Yes Companies Exp Fred, LLC
41,322
0.37%
APC, Inc.
40,960
0.37%
Georgia Pacific
38,867
0.35%
Total Larger Customer Charges:
$1,191,554
10.69%
Total Water System Charges:
$11,168,595
WATER SALES
Fiscal Year
Total Gallons
Total Water Revenue
2015/16
1,883,797,577
$8,159,240
2016/17
1,844,997,668
8,248,796
2017/18
1,632,426,374
8,525,072
2018/19
1,750,735,443
8,636,521
2019/20
1,738,198,948
8,958,162
PQ
HISTORICAL CASH FLOW & ANTICIPATED DEBT COVERAGE
The following table presents the System's revenues and expenditures for Fiscal Year 2017-18 through Fiscal Year 2019-
20 based on the City's Audited Financial Statements. In addition, the table provides a pro forma of theSystem's
anticipated operating revenues and expenditures for Fiscal Year 2020-21 and Fiscal Year 2021-22. Projected
performance cannot be guaranteed.
The System's historical and anticipated debt service coverage ratios are as follows:
--Audited Financial Statements --
Unaudited/
Projected
Budget2
FY 2017-18
FY 2018-19
FY 2019-20
FY 2020-21
FY 2021-22
OPERATING REVENUES
Usage Charges
$8,860,063
$8,894,841
$9,223,000
$8,589,722
$9,299,359
Other Revenue
46,073
64,182
49,979
452,661
378,848
Total Operating Revenues
$8,906,136
$8,959,023
$9,272,979
$9,042,383
$9,678,207
OPERATING EXPENSES
Employee Expense
$2,533,836
$2,614,288
$2,943,258
$2,887,353
$2,973,839
Utilities
690,346
728,946
827,417
813,718
875,835
Repairs and Maintenance
165,481
226,070
207,802
351,733
282,490
Supplies and Services
1,511,896
2,080,976
1,533,566
2,601,086
2,179,893
Insurance
87,468
76,090
87,170
85,805
101,062
Depreciation
1,404,937
1,313,288
1,212,928
0
0
Total Operating Expense
$6,393,964
$7,039,658
$6,812,141
$6,739,695
$6,413,119
NET OPERATING REV
$2,512,172
$1,919,365
$2,460,838
$2,302,688
$3,265,088
Add Depreciation
1,404,937
1,313,288
1,212,928
0
0
Investment Earnings
55,989
201,464
224,393
74,254
75,000
Net Revenues for Debt Service
$3,973,098
$3,434,117
$3,898,159
$2,376,942
$3,340,087
Revenue Debt Service
777,000
850,000
1,420,000
1,686,000
1,699,000
Coverage
5.11
4.04
2.75
1 1.41
1.97
1 Accrual basis.
2 Cash basis.
21
WATER SYSTEM REVENUE DEBT
Water System Revenue Debt (Includes the Bonds, Excludes the Refunded Bonds)
The City has revenue debt payable solely from the net water revenues of the City's water system:
Date
Original
Final
of Issue
Amount
Purpose
Maturity
10/07
$915,000
Water Improvements (SRF)
06/28
11/08D
1,195,000
Water Improvements
06/213
02/10
7,676,000
Water Improvements (SRF)
06/31
09/10D
5,700,000
Water Improvements
06/213
07/17
10,198,000
Water Improvements (SRF)
06/37
8/19
4,400,000
Water Improvements (SRF)
06/40
08/21
3,720,000
Water Refunding
06/30
Total
Principal
Outstanding
As of 07/01/21
$387,000
0
1,838,000
0
9,161,000
4,219,000
3,720,000
$19,325,000
Water System Revenue Fiscal Year Debt Service Payments (Includes the Bonds, Excludes the Refunded Bonds)
Current Outstanding
Debt
The Bonds
Total Outstanding Debt
Debt
Debt
Debt
Year
Principal
Service
Principal
Service
Principal
Service
2022
$894,500
$1,196,300
$375,000
$411,143
$1,269,500
$1,607,443
2023
904,500
1,198,710
395,000
438,327
1,299,500
1,637,037
2024
925,000
1,201,120
405,000
445,207
1,330,000
1,646,327
2025
946,500
1,204,120
405,000
441,562
1,351,500
1,645,682
2026
968,000
1,206,690
410,000
442,390
1,378,000
1,649,080
2027
991,000
1,210,330
420,000
447,675
1,411,000
1,658,005
2028
1,014,000
1,213,510
425,000
447,341
1,439,000
1,660,851
2029
974,500
1,153,730
435,000
450,584
1,409,500
1,604,314
2030
996,000
1,155,740
450,000
458,145
1,446,000
1,613,885
2031
1,019,000
1,158,820
1,019,000
1,158,820
2032
823,000
942,440
823,000
942,440
2033
840,000
942,980
840,000
942,980
2034
857,000
943,180
857,000
943,180
2035
874,000
943,040
874,000
943,040
2036
892,000
943,560
892,000
943,560
2037
910,000
943,720
910,000
943,720
2038
253,000
268,520
253,000
268,520
2039
259,000
269,460
259,000
269,460
2040
264,000
269,280
264,000
269,280
Total
$15,605,000
$18,365,25
$3,720,000
$3,982,374
$19,325,000
$22,347,624
3 The maturities after 2021 are being refunded by the Bonds.
22
'> Includes IFA servicing fees.
23
APPENDIX A: INFORMATION ABOUT THE ISSUER
APPENDIX A - INFORMATION ABOUT THE ISSUER
CITY OF DUBUQUE, IOWA
CITY HALL
50 W. 13' 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 I ........................................................
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 West Des Moines, Iowa ...........Municipal Advisor
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
property. The assessments finalized as of January 1 of each year are applied to the following fiscal year.
The 2020 final Actual Values were adjusted by the Dubuque County Auditor. The reduced values,
determined after the application of rollback percentages, are the Taxable Values subject to tax levy. For
assessment year 2020, the Taxable Value rollback rate was 56.4094% of Actual Value for residential
property; 84.0305% of Actual Value for agricultural property; 90% of Actual Value for commercial,
industrial, and railroad property, 67.5000% of Actual Value for multiresidential property, and 98.5489% 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
1/1/2020 VALUATIONS4
100% Taxable Value
Actual Value (With Rollback)
Residential $2,883,700,162 $1,603,445,974
Commercial 877,949,735 763,464,209
Industrial 90,060,981 77,675,463
Multi -residential 199,518,934 128,814,495
Railroad 4,022,947 3,620,652
Utilities w/o Gas & Electric 4,117,584 4,057,834
Other 0 0
Gross valuation $4,059,370,343 $2,581,078,627
Less military exemption (4,115,144) (4,115,144)
Net valuation $4,055,255,199 $2,576,963,483
TIF increment (used to compute debt
service levies and constitutional debt
limit) $404,061,757 $400,278,958
Taxed separately
Ag. Land & Buildings $3,947,871Erro 3,317,146
r! Bookmark
not defined.
Utilities — Gas & Electric 369,056,843 $69,267,366
Source: Iowa Department of Management
4 For taxes payable July 1, 2021 through June 30, 2022.
GROSS TAXABLE VALUATION BY CLASS OF PROPERW
Residential
Multiresidential
Commercial, Industrial, Other, Railroad & Utility
Utilities — Gas & Electric
Total Gross Taxable Valuation
Source: Iowa Department of Management
TREND OF VALUATIONS
l/l/2020 Assessment Year
Taxable
Percent
Valuation
Total
$1,603,445,974
60.499%
128,814,495
4.860%
848,818,158
32.027%
69.267.366
2.614%
$2,650,345,993 100.00%
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
100%
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
4,430,255,110
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
2,579,355,511
405,604,502
2020
2021-22
4,832,321,670
2,646,230,849
400,278,950
Source: Iowa Department of Management
5 Before military exemption, and exclusive of taxable TIF increment.
LARGER TAXPAYERS
Property/
l/l/2020
Taxpayer
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 Auditor'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]
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 2020 Actual Valuation (effective July 1, 2021) is as follows:
Actual Valuation of Property
Less: Military Exemption
Net Valuation
Constitutional Debt Percentage
Constitutional Debt Limit
Less: Applicable General Obligation Debt
Less: Urban Renewal Debt
Less: Rebate Agreements
Less: Other Obligations
Less: Annual Appropriation'
Constitutional Debt Margin
1/1/2020 Assessment Year
$4,836,468,063
(4,115,144)
$4,832,352,919
5.00%
$241,617,646
(80,025,000)
(18,395,000)
(6,107,583)
(6,051,627)
(1,474,469)
$129,563,967
[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]
' Amount appropriated for the $22,138,000 General Obligation Annual Appropriation Refunding Capital
Loan Notes, Series 2021 to be abated by sales tax increment.
DIRECT DEBT
First Lien General Obligation Debt (Includes the Bonds, Excludes the Refunded Bonds)
Principal
Date
Original
Final
Outstanding
of Issue
Amount
Purpose
Maturi
As of 07/01/21
04/16A
$2,830,000
Corporate Purpose
06/35
$2,175,000
04/16B
10,920,000
Refunding
06/28
3,570,000
04/16C
4,145,000
Corporate Purpose
06/35
3,230,000
04/17A
8,495,000
Refunding
06/30
3,650,000
04/17B
9745,000
Urban Renewal Refunding
06/30
7,000,000
04/17C
2,120,000
Taxable Urban Renewal Refunding
06/30
1,605,000
04/18A
4,950,000
Corporate Purpose & Refunding
06/31
3,960,000
04/18B
1,005,000
Taxable Refunding
06/26
665,000
06/19A
2,295,000
Corporate Purpose
06/39
2,240,000
06/19B
860,000
Taxable Corporate Purpose
06/27
650,000
07/19C
4,435,000
Refunding
06/32
3,560,000
06/21A
27,995,000
Corporate Purpose & Refunding
06/41
27,995,000
06/21B
12,535,000
Taxable Corporate Purpose & Refunding
06/36
12,535,000
Total
$72,835,000
Second Lien Sales Tax Increment General Obligation Debt
Principal
Date
Original
Final
Outstanding
of Issue
Amount
Purpose
Maturitv
As of 07/01/21
06/14
$7,190,000
Flood Mitigation
06/29
$7,190,000
Total
General Obligation Debt Subject
to
Debt Limit:
$80,0
25,000
Urban Renewal Revenue Debt
Principal
Date
Original
Final
Outstanding
of Issue
Amount
Purpose
Maturi
As of 07/01/21
10/07
$23,025,000
Port of Dubuque Parking Ramp
06/37
$18,395,000
OTHER DEBT
The City has debt payable solely from the net water revenues of the City's water system as follows:
Water Revenue Debt (Excludes the Refunded Bonds, Includes the Bonds)
Principal
Date
Original
Final
Outstanding
of Issue
Amount
Purpose
Maturi
As of 07/01/21
10/07
$915,000
Water Improvements (SRF)
06/28
$387,000
02/10
7,676,000
Water Improvements (SRF)
06/31
1,838,000
07/17
10,198,000
Water Improvements (SRF)
06/37
9,161,000
08/19
4,400,000
Water Improvements (SRF)
06/40
4,219,000
08/21
3,720,000
Water Refunding
06/30
3,720,000
Total $19,325,000
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
Purpose
Maturi
As of 07/01/21
01/09
$1,847,000
Sewer & Storm Improvements
06/28
$778,000
01/10
$912,000
Sewer Improvements (SRF)
06/30
483,000
08/10
74,285,000
Sewer Improvements (SRF)
06/29
55,423,000
04/13
3,048,000
Sewer Improvements (SRF)
06/33
1,972,000
05/13
3,058,000
Sewer Improvements (SRF)
06/31
1,837,000
03/19
2,763,000
Sewer Improvements (SRF)
06/38
2,400,907
Total $62,893,907
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
Maturi
As of 07/01/21
01/10
800,000
Stormwater Improvements (SRF)
06/30
$423,000
10/10
7,850,000
Stormwater Improvements (SRF)
06/41
6,013,000
02/14
1,029,000
Stormwater Improvements (SRF)
06/33
217,000
04/19
16,382,000
Stormwater Improvements (SRF)
06/40
13,313,332'-
Total
$19,966,332
Amount drawn as of April 6, 2021
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 11 for further information on pensions.
UNION CONTRACTS
City employees are represented by the following bargaining units:
Bargaining Unit
Teamsters Local Union No 120'
Teamsters Local Union No 120 Bus Operators8
Dubuque Professional Firefighters Association
Dubuque Police Protective Association
International Union of Operating Engineers No. 2348
Unit Members Contract Expiration Date
111
June 30, 2022
50
June 30, 2022
76
June 30, 2023
79
June 30, 2024
59
June 30, 2024
a 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.
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 PERMITS9
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
Simon le
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
11
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.
9 Totals include new construction totals only for single family, multi -family, commercial/industrial, roofing,
siding, decks, and other miscellaneous residential and commercial permits.
UNEMPLOYMENT RATES
Calendar
Year
City of
Dubuque
State
Average
Dubuquel0
County'0
of Iowa11
2016
3.5%
3.6%
3.7%
2017
3.1 %
3.0%
3.1 %
2018
2.4%
2.4%
2.5%
2019
2.7%
2.7%
2.8%
2020
6.6%
5.9%
5.3%
Source: Iowa Workforce Development Center. Figures 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.
to Not seasonally adjusted.
11 Seasonally adjusted.
APPENDIX B: FORM OF LEGAL OPINION
Ahlers & Cooney, P.C.
Attorneys at Law
A H L E R 5 C❑❑ N E Y
100 Court Avenue, Suite 600
A T T 0 R N E Y 5 Des Moines, Iowa 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 Water Revenue Refunding Bonds, Series 2021C, by said
City, dated August 18, 2021 *, 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 Resolution has been duly adopted by the Issuer and constitutes a valid and
binding obligation of the Issuer enforceable upon the Issuer. The Resolution creates a valid lien
on the Net Revenues of the Municipal Water System pledged by the Resolution for the security
of the Bonds.
The lien of the Bonds ranks on a parity as to the pledge of Net Revenues with respect to
other Outstanding Obligations and Additional Obligations. The right to issue Additional
Obligations is reserved upon conditions set forth in the Resolution.
3. The Bonds have been duly authorized, issued and delivered by the Issuer and are
valid and binding special obligations of the Issuer, payable solely from the sources provided
therefor in the Resolution.
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
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
E11
Page 2
Water Revenue Refunding Bonds, Series 2021C
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
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,
01905512-1\10422-215
APPENDIX C: JUNE 30, 2020 COMPREHENSIVE ANNUAL FINANCIAL REPORT
I
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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 Pale
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-11
City Organizational Chart 13
Officials 14
Certificate of Achievement for Excellence in Financial Reporing 15
FINANCIAL SECTION
Independent Auditor's Report
19-21
Management's Discussion and Analysis
23-32
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position
1
34-35
Statement of Activities
2
36
Fund Financial Statements
Balance Sheet — Governmental Funds
3
38-39
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
3-1
41
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds
4
42-43
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities
4-1
45
Statement of Net Position — Proprietary Funds
5
46-49
Statement of Revenues, Expenses, and Changes in Fund Net Position
— Proprietary Funds
6
50-51
Statement of Cash Flows — Proprietary Funds
7
52-55
Statement of Fiduciary Assets and Liabilities — Agency Funds
8
56
Notes to Financial Statements
57-113
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds
116
Note to Required Supplementary Information — Budgetary Reporting
117
Schedule of the City's Proportionate Share of Net Pension Liability — Iowa
Employees' Retirement System
118
Schedule of City's Contribution — Iowa Employees' Retirement System
119
Notes to Required Supplementary Information — Net Pension Liability IPERS
120
Schedule of the City's Proportionate Share of Net Pension Liability — 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 Liability, 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 — Nonmajor 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
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
C-2
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 (Unaudited)
Table
Pate
Statistical Section Contents
153
Financial Trends
Net Position by Component
1
154-155
Changes in Net Position
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 Capacity
Ratios 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 Cumulative 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 Function/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
THE CITY OF
DUB TE
Masterpiece on the Mississippi
January 15, 2021
Dubuque
Finance Department
50 West IPStreet
Dubuque, Iowa 52001-4805
All-AmericaCiq
Office (563) 589-4133
1 1
Fax (563) 690-6689
I I I I
TTY (563) 690-6678
finance@cityofdubuque.org
2007-2012.2013
2017 * 2019
www.cityofdubuque.org
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 Administrative Requirement, Cost Principals, and Audit Requirements for Federal Awards
(Uniform Guidance). Information related to this single audit, including the Schedule of Expenditures of
Federal Awards, findings, recommendations, and the auditor's report on internal control over financial
reporting and compliance with requirements applicable to laws, regulations, contracts, and grants, are
included in the Compliance Section of this report. The independent auditors' report is included in the
Financial Section of this report.
The City provides a full range of services including: police and fire protection; sanitation services; the
construction and maintenance of roads, streets, and infrastructure; inspection and licensing functions;
maintenance of grounds and buildings; regional airport; library; recreational activities; and cultural events.
In addition to general government activities, the municipality owns and operates enterprises for a water
system, water resource and recovery center (wastewater treatment), stormwater system, parking facilities,
refuse collection, road salt and public transportation.
This report includes all funds of the City of Dubuque, as well as its component units. Component units are
legally separate entities for which the City is financially accountable. This report includes the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives and Subsidiaries, and Dubuque
Convention and Visitors Bureau as discretely presented component units. A discretely presented
component unit is reported in a separate column in the government -wide financial statements to emphasize
that it is legally separate from the City of Dubuque and to differentiate its financial position and results of
operations from those of the City. The City appoints a voting majority to the DMASWA governing board
and operates the landfill. Dubuque Initiatives is organized to render service to the City Council of the City
of Dubuque on matters of community interest, and in the event of dissolution, any assets or property of the
3
organization are transferred to the City. Dubuque Convention and Visitors Bureau's purpose is to
strengthen the Dubuque area economy by competitively marketing the area as a destination for conventions,
tour groups, sporting events, and individual travelers. The organization's board members include one City
Council member, the City of Dubuque Mayor, and the City Manager. In the event of dissolution, any assets
or property of the organization shall be transferred to the City. The City collects hotel/motel taxes and
forwards 50% to Dubuque Convention and Visitors Bureau as the primary source of funds for its
operations.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The City of Dubuque's MD&A can be found
immediately following the independent auditor's report.
PROFILE OF THE CITY
The City of Dubuque, incorporated in 1833, is located on the Mississippi River in northeast Iowa, adjacent
to the states of Illinois and Wisconsin. Julien Dubuque, the city's namesake, first began mining lead in the
area now known as Dubuque in 1788. Dubuque is the oldest city in Iowa and has a unique combination of
the old and new, ranging from a historic downtown, numerous examples of Victorian architecture, and a
Civil War era shot tower, to expanding industrial parks, multiple retail centers, revitalized riverfront and
millwork districts and two casinos, one with a pari-mutuel dog track. The City of Dubuque has a stable,
diversified economic base and is a major tri-state retail center. The City currently has a land area of 31.6
square miles, and a census 2010 population of 57,637. The U.S. Census Bureau's 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 City'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 mayor is elected to a four-year term.
Council members are elected to four-year, staggered terms with three council members elected every two
years. Four of the council members are elected within their respective wards; the mayor and the two
remaining council members are elected at -large. The governing council is responsible, among other things,
for setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the city
manager, city attorney, and city clerk. The city manager is responsible for overseeing the day-to-day
operations of the government, making recommendations to the city council on the budget, and other matters,
appointing the heads of the government's departments, and hiring employees.
ECONOMIC CONDITION AND OUTLOOK
The economic condition and outlook of Dubuque continues to thrive. The City's economy has a diverse
employer base including manufacturing, technology, health services, insurance, education, and government.
The top 10 employers in the area employ less than 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.
4
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 workforce. Buildout on portions of several floors of the building will provide office
space for an additional 20 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
authenticity and character while offering valuable lessons about the importance of sustainable urban design
strategies. Dubuque's Historic Millwork District is a keystone to the region's aggressive economic
development strategy. With one million square feet of historic warehouse space ideal for urban mixed -use
development, the District is perfectly suited to attract entrepreneurs, designers, residents, institutions, and
businesses prepared to fuel Dubuque's globally competitive and sustainable economy. The District is
currently home to multiple eateries, breweries, and shopping venues. To date, nearly $100 million has been
invested into the transformation of the Millwork District and it is attracting entrepeneurs, residents,
institutions, and businesses that are fueling Dubuque's competitive economy.
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.
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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 network of over
60 partners working to advance justice and social equity, and Imagine Dubuque 2017: A Call to
Action, the comphrensive planning process that collected input from 6,000 residents to identify a
roadmap for Dubuque's future. The application and presentation also featured three projects
deonstrating how partners are impacting health outcomes for all residents. "Health Care for All"
highlights the progress Crescent Community Health Center has made, the impact of the Pacific
Islander Health Prject, and the recent work of the Brain Health Task Force. The Bee Branch Creek
Restoration Project was the seond project highlighted and the collaborative work happening by the
Dubuque Easts Well coalition to increase access to healthy local foods is the third.
• In 2018, Dubuque became a LEED-Certified City. As one of the 75 STAR -certified cities and
counties in the U.S., Dubuque was recently named a LEED Certified City. STAR stands for
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Sustainability Tools for Assessing and Rating Communities. STAR Communities is a national
framework for measuring and advancing local government's environmental, economic and
community efforts to achieve sustainability. Leadership in Energy and Enviromental Design, or
LEED, for Cities is a program from the U.S. Green Building Council (USGBC) that advances
healthy, green, and economically strong cities and communities.
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the mayor and city council,
has been involved in a variety of projects throughout the year. These projects reflect the City's commitment
to continue to provide high quality services to the residents and stakeholders of Dubuque within the budget
guidelines set by the mayor and city council.
Bee Branch Watershed Flood Mitigation Project: The City's $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
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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, indoor classroom and outdoor vehicle training areas. The $6.8 million project was supplemented
with nearly $5.3 million in state and federal funds.
Southwest Arterial: In 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:
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• 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 types which include pension trust
funds, private purpose trust funds, and agency funds are included in the annual budget process. The level of
budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount) is
established by state programs. The government also maintains an encumbrance accounting system as one
technique for accomplishing budgetary control. Encumbered amounts lapse at year-end; however,
encumbrances generally are re -appropriated as part of the following year's budget. As demonstrated by the
statements and schedules included in the financial section of this report, the City continues to meet its
responsibility for sound financial management.
Cash Management: Cash temporarily idle during the year was invested in demand deposits, certificates of
deposit, federal agency obligations, and authorized mutual funds. The City (including DMASWA) received
cash basis investment earnings of $2,068,897 for the year. The investment policy adopted by the city
council stresses the importance of capital preservation. The policy directives intend to minimize credit and
market risks while maintaining a competitive yield on the portfolio.
Risk Management: The City of Dubuque is a member of a statewide risk pool for local governments, the
Iowa Communities Assurance Pool (ICAP). The coverage for general and auto liability, as well as public
official and police professional liability are acquired through this pool. 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 workers' compensation benefits were self -insured up to
a specific stop -loss amount of $750,000, and an aggregate -stop loss consistent with statutory limits for 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.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 eligibility for another certificate.
GFOA also awarded a Distinguished Budget Presentation Award to the City of Dubuque, Iowa, for its
annual budget for the fiscal year ended June 30, 2021. 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.
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Acknowledgments: The preparation of this report could not be accomplished without the efficient and
dedicated services of the entire Finance Department staff. We also thank the mayor and city council for
their interest and support in planning and conducting the financial operations of the City of Dubuque in a
responsible and progressive manner. We also thank the independent certified public accountants, Eide
Bailly LLP, whose competent assistance and technical expertise have enabled the production of this report.
Sincerely,
Michael C. Van Milligen
City Manager
Jennifer M. Larson
Director of Finance and Budget
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Citizens of Dubuque
City Attorney City Council — City Clerk
Library _ Airport
Management/Legislative City Manager Neighborhood
' Development
Sustainability
Building Economic
Services Development
Arts & Cultural
Affairs
Emergency Engineering
Communications
Finance & Fire
Budget
Ambulance Emergency
Services Management
Housing &
Health Services Community
Development
Human
Resources Human Rights
Advancing Community
Equity Engagement
Information
Leisure
Services
Services
Recreation
Parks
Planning
Civic Center
Grand River
enter
Center
Services
Multicultural
Family Center
Public
Information
Media Geographic
Services Information
Systems
Transportation
Services
Parking Transit
Water &
Resource
Recovery Center
Public Works
Water
Elected by the Appointed by the Appointed by the Appointed by the Appointed by the
Citizens of Dubuque City Council Library Board of Airport Commission City Manager
Trustees
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CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2020
CITY COUNCIL
Roy D. Buol
Ric W. Jones
David T. Resnick
Brett M. Shaw
Laura J. Roussell
Danny Sprank
Brad M. Cavanagh
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M. Brumwell
Maureen A. Quann
Kevin S. Firnstahl
DEPARTMENT MANAGERS
Mayor
Council Member
— At Large
Council Member
— At Large
Council Member
— 1 st Ward
Council Member
— 2nd Ward
Council Member
— 3rd Ward
Council Member
— 4th Ward
City Manager
Senior Counsel
City Attorney
Assistant City Attorney
City Clerk
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. Steins
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
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ove1Y rent Finance officers Association
Certificate
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Comprehensive Annual
Financial Depart
For the Fiscal Year Ended
June 30, 019
Executive Director/CEO
ILI
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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, Iowa
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa as of and for the year ended June 30, 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 Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement. The financial
statements of Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau,
discretely presented component units, were not audited in accordance with Government Auditing
Standards.
What inspires you, inspires us. I eidebailly.com
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1545 Associates Dr., Ste. 101 ' Dubuque, IA 52002-2299 I T 563.556.1790 I 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, Iowa, 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, Iowa's financial statements. The introductory section,
combining nonmajor fund financial statements, and statistical section are presented for purposes of
additional analysis and are not a required part of the financial statements. The accompanying schedule
of expenditures of federal awards is presented for purposes of additional analysis as required by the
audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is
also not a required part of the financial statements.
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The combining nonmajor fund financial statements and the schedule of expenditures of federal awards
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining nonmajor fund
financial statements and the schedule of expenditures of federal awards are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated January 15,
2021, on our consideration of the City of Dubuque, Iowa's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements,
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
Dubuque, Iowa
January 15, 2021
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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 (Sales 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 fiscal 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 nonmaj or governmental funds is provided in the form of combining statements elsewhere in this
report.
The City legally adopts an annual budget by function. A budgetary comparison schedule has been
provided.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The City uses enterprises funds to account for its sewer, water, storm water, and refuse
utilities, transit service, parking facilities, salt, and America's River Project. Internal service funds are
accounting devices used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its engineering services, garage services,
stores/printing, health insurance, and workers' compensation. The City's internal service funds
predominately benefit the governmental activities and have been included in the governmental activities
in the government -wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial statements
because the resources of those funds are not available to support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City has three
fiduciary funds, an agency fund reporting resources held for the Dubuque Racing Association for
improvements at the greyhound racing facility, an agency fund used for reporting resources from
Mediacom for purchasing equipment relevant to public, educational, and governmental (PEG) access
broadcasting and an agency fund used for reporting resources held for the decomissioning of the prior
Flexsteel site.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Required supplementary information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning the budget and
actual results of the City, the City's proportionate share of the net pension liability and related
contributions for both of the City's pension plans, and the schedule of changes in total OPEB liability.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor enterprise funds, internal service funds, and agency funds, are presented
immediately following the required supplementary information.
25
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 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 of resources
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
Other liabilities
14,164,454
15,275,931
16,131,621
12,499,475
30,296,075
27,775,406
Total liabilities
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)
Total net position
$ 377,860,409
$ 376,644,509
$ 212,382,366
$ 195,310,511
$ 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
$195,310,511. Charges for services 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 City'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
Hotellmotel 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 safety
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
Stormwater utility
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's River Project
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
Total expenses
99,601,046
94,000,641
38,132,185
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
Net position, beginning
376,644,509
364,457,520
195,310,511
181,955,931
571,955,020
546,413,451
Net position, 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 service 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 for 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
$835,611, but increases were also in the public safety, culture and recreation, and community 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 DUBUQUE9 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)
Govememental Activities
Business -type
Activities
Total
2020
2019
2020
2019
2020
2019
Land $
79,331,528
$ 78,777,621
$ 24,793,823
$ 24,805,263
$ 104,125,351 $
103,582,884
Buildings
139,555,836
141,858,066
159,240,025
159,586,137
298,795,861
301,444,203
Improvements other than 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
115,073,585
113,861,028
167,455,224
165,534,648
Infrastructure
239,440,411
236,909,111
-
-
239,440,411
236,909,111
Construction in 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
debt service.
The City continues to operate under the State debt capacity limitations. The State limits the amount of
general obligation debt outstanding to 5% of the assessed value of all taxable property in the community.
Thus the City's debt capacity is $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 property, 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
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Total Current Assets
NONCURRENT ASSETS
Expendable restricted cash and investments
Nonexpendable restricted cash and investments
Notes receivable
Capital assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in progress
Accumulated depreciation
Total Noncurrent Assets
Total Assets
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
$ 48,697,058 $ 29,487,015 $ 78,184,073 $ 7,962,484 $ 10,976,497 $ 112,376
1,096,305
1,096,305
26,202,568
26,202,568
-
- -
2,729,268
3,834,133
6,563,401
530,045
27,373 28,384
426,964
-
426,964
-
- -
222,616
102,339
324,955
50,993
-
2,465,755
-
2,465,755
-
47,065
7,101,310
4,032,439
11,133,749
19,123
- -
1,559,798
1,034,062
2,593,860
-
133,347 9,041
655,592
100,881
756,473
28,634
- -
91,157,234
38,590,869
129,748,103
8,591,279
11,184,282 149,801
7,083,640 5,478,819 12,562,459 5,361,267 1,420,609 235,587
69,412 - 69,412 - - -
7,800,982 - 7,800,982 105,267
79,331,529
24,793,823
104,125,352
2,737,804
-
139,555,836
159,240,025
298,795,861
386,779
265,111
24,726,686
178,550,296
203,276,982
15,903,557
27,491
52,381,639
115,073,585
167,455,224
3,990,168
105,385
239,440,410
-
239,440,410
-
-
59,256,755
34,113,325
93,370,080
3,295,599
(174,829,436)
(143,277,265) (318,106,701)
(9,427,780)
- (126,925)
434,817,453
373,972,608
808,790,061
22,247,394
1,525,876 506,649
525,974,687
412,563,477
938,538,164
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
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Tax increment financing bonds payable
Accrued compensated absences
Accrued interest payable
Intergovernmental payable
Unearned revenue
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and postclosure care
Tax increment financing bonds payable
Accrued compensated absences
Net pension liability
Total OPEB liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
OPEB related deferred inflows
Succeeding year property tax
Deferred amount on refunding
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for/by:
Bond ordinance development agreement
Debt service
Employee benefits
Community development
Iowa Finance Authority Trust
Capital projects
Franchise agreement
Endowments, expendable
Endowments, nonexpendable
Other
State statute
Landfill closure and post closure care
Minority interest
Unrestricted
Total Net Position
See notes to financial statements.
Primary Government
Component Units
Dubuque
Dubuque
Metropolitan
Dubuque
Convention
Governmental Business -type Area Solid
Initiatives and
and Visitors
Activities Activities Total Waste Agency
Subsidiaries
Bureau
$ 5,467,057 $
4,956,180
$ 10,423,237 $
391,015 $
49,286 $ 255,583
1,851,383
339,195
2,190,578
31,675
- 23,038
251,865
1,063,545
1,315,410
-
7,367
91,860
6,094,000
6,185,860
-
-
4,578,192
2,916,809
7,495,001
425,000
-
340,000
340,000
-
590,000
-
590,000
-
404,373
60,060
464,433
1,139
-
229,223
361,832
591,055
19,863
3,235
8,141
-
8,141
98,251
- -
692,360
-
692,360
-
- 2,254
14,164,454
16,131,621
30,296,075
966,943
52,521 288,242
3,647,429
1,088,786
4,736,215
10,783
-
110,871,647
110,871,647
- -
37,407,321
33,304,047
70,711,368
7,699,672
-
32,366,267
32,366,267
-
-
-
-
1,981,708
18,235,306
-
18,235,306
-
5,611,886
658,903
6,270,789
211,858
45,154,154
4,971,397
50,125,551
489,134
4,861,348
1,021,345
5,882,693
112,052 -
114,917,444
184,282,392
299,199,836
10,494,424 - 10,783
129,081,898
200,414,013
329,495,911
11,461,367 52,521 299,025
4,099,839
868,017
4,967,856 85,405
277,024
58,203
335,227 6,385
26,202,568
-
26,202,568 -
255,280
64,244
319,524 -
30,834,711
990,464
31,825,175 91,790
387,344,725 191,757,112 579,101,837 9,107,248 271,062
2,140,740 3,187,364
5,328,104
5,055 -
5,055
57,032
57,032
8,776,446
8,776,446
1,235,968
1,235,968
12,157,094
12,157,094
618,857
618,857
104,586
104,586
69,412
69,412
1,336,244
1,336,244
-
-
-
130,309
2,903,459
1,649,240 - -
(35,985,750) 17,437,890
(18,547,860)
5,616,136 12,657,637 86,363
$ 377,860,409 $ 212,382,366
$ 590,242,775 $
19,406,392 $ 12,657,637 $ 357,425
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 Governmental Business -type
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:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities
Business -type activities
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Total business -type activities
Total primary government
Component units
Dubuque Metropolitan Area Solid Waste
Agency
Dubuque Initiatives and Subsidiaries
Dubuque Convention and Visitors Bureau
Total Component Units
See notes to financial statements
$ 32,079,903 $
2,641,633 $
1,267,198 $
- $
3,908,831
$ (28,171,072) $
$ (28,171,072)
22,667,132
6,732,825
5,063,878
13,352,469
25,149,172
2,482,040
2,482,040
1,677,181
386,885
11,339
725
398,949
(1,278,232)
(1,278,232)
13,576,571
2,237,000
494,976
460
2,732,436
(10,844,135)
(10,844,135)
17,848,570
2,515,823
7,646,929
1,659,370
11,822,122
(6,026,448)
(6,026,448)
8,821,692
2,553,244
-
437,247
2,990,491
(5,831,201)
(5,831,201)
2,929,997
-
-
-
(2,929,997)
(2,929,997)
99,601,046
17,067,410
14,484,320
15,450,271
47,002,001
(52,599,045)
(52,599,045)
11,725,889
12,606,632
69,575
12,676,207
950,318
950,318
7,631,411
9,273,720
-
19,380
9,293,100
1,661,689
1,661,689
5,887,171
5,061,855
380,606
4,688,744
10,131,205
4,244,034
4,244,034
3,414,851
2,313,344
79,942
-
2,393,286
(1,021,565)
(1,021,565)
3,161
-
-
-
(3,161)
(3,161)
4,387,683
4,448,317
-
-
4,448,317
60,634
60,634
4,748,463
400,576
2,507,071
1,632,895
4,540,542
(207,921)
(207,921)
333,556
346,753
-
346,753
13,197
13,197
38,132,185
34,451,197
2,967,619
6,410,594
43,829,410
5,697,225
5,697,225
$ 137,733,231 $
51,518,607 $
17,451,939 $
21,860,865 $
90,831,411 $ (52,599,045) $
5,697,225 $
(46,901,820)
$ 2,852,380 $ 6,915,660 $ 76,101 $ $ 6,991,761
101,790 - - -
1,455,694 1,554,348 123,000 1,677,348
$ 4,409,864 $ 8,470,008 $ 199,101 $ $ 8,669,109
General revenues
Property taxes
Local option sales tax
Hotel motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Miscellaneous
Gain on disposal of capital assets
Transfers
Total general revenues and transfers
Change in Net Position
Net position, beginning of year
Net position, ending of year
38,354,691
38,354,691
9,652,332
9,652,332
2,117,506
2,117,506
4,976,472
4,976,472
7,394,294
7,394,294
1,857,420
796,494 2,653,914
$ 4,139,381 $
- (101,790)
- - 221,654
4,139,381 (101,790) 221,654
213,772 13,409 313
1 914 655
23,866
16,500
40,366
(10,561,636)
10,561,636
-
53,814,945
11,374,630
65,189,575
213,772
1,928,064
313
1,215,900
17,071,855
18,287,755
4,353,153
1,826,274
221,967
376, 644, 509
195,310,511
571,955,020
15,053,239
10,831,3 63
135,458
$ 377,860,409 $
212,382,366 $
590,242,775 $
19,406,392 $
12,657,637 $
357,425
36
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37
CITY OF DUBUQUE, IOWA
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30, 2020
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Due from other funds
Inventories
Prepaid items
Restricted cash and pooled cash investments
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Unearned revenue
Total Liabilities
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax
Special assessments
Grants
Other
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable
Endowment corpus
Inventory
Long-term notes receivable
Prepaid items
Restricted
Endowments
Library
Police
Veterans
Debt service
Bond ordinance
Capital improvements
Franchise agreement
Special assessments
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Assigned
DRA gaming and distribution
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances
EXHIBIT 3
Revenue
Tax
Increment Community
General Financing Development
$ 21,203,339 $ 6,147,527 $ 1,797,978
667,139
319,783
22,891,980
-
2,043,708
188,044
19,344
-
-
112,645
54,071
12,229
4,536,665
289,800
3,886,725
1,197,287
-
2,547,762
456,550
-
196,531
395,828
412,362
-
21,196
220,741
2,634,920
-
$ 53,958,291 $
9,634,145 $
8,661,718
$ 1,407,099 $ 84,622 $ 613,758
1,674,452 - 26,574
574,676 - -
3,656,227 84,622 640,332
22,891,980
19,344 -
21,804 2,421,125
479,218 -
23,412,346 2,421,125
196,531
4,536,665
412,362
21,196
- 2,140,740 -
219,741 7,408,783 -
8,182,821
1,396,196
20,128,223 - (2,603,756)
26,889,718 9,549,523 5,600,261
$ 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
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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 activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets $ 594,336,265
Accumulated depreciation (174,566,302)
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
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
419,769,963
4,553,945
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 of:
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
Revenue
Tax
Increment
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
11,115
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
Capital projects
596,664
- 7,649,968
Total Expenditures
60,501,091
2,496,361 12,580,665
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) 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 FUND BALANCES 575,150 387,791 (1,662,232)
FUND BALANCES, BEGINNING 26,314,568 9,161,732 7,262,493
FUND BALANCES, ENDING $ 26,889,718 $ 9,549,523 $ 5,600,261
See notes to financial statements.
42
Other
Governmental
Debt Service 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) 252,126
1,699,015
- 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
11,838,812
-
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 3,044,421
- 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)
(6,202) (919,732) (1,625,225)
11,257 20,162,419 62,912,469
$ 5,055 $ 19,242,687 $ 61,287,244
43
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44
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2020
EXHIBIT 4-1
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
In the statement of activities, only the gain or loss on the sale of capital assets is reported,
whereas in the governmental funds, the entire proceeds from the sale increase financial
resources. Thus, the change in net position differs from the change in fund balances by the
book value of the asset being disposed.
(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 liabilities in the statement of net position.
Repayment of debt principal is an expenditure in the governmental funds,
but it reduces long-term liabilities in the statement of net position and does not
affect the statement of activities. Also, governmental funds report the effect of
issuance discounts and premiums when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities.
Debt issuances including premium
(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
Amortization 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)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The change in net position of the internal service funds is
reported with governmental activities.
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
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Prepaid items
Inventories
Total Current Assets
NONCURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
Improvements to other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
OPEB related deferred outflows
Total Deferred Outflows of Resources
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 3,916,552 $
8,954,694 $
13,689,675
1,550,320
1,164,994
590,615
50,529
14,644
34,481
-
-
938,641
1,746
15,440
61,960
305,519
726,499
-
5, 824,666
10, 876,271
15,315,3 72
349,437
1,809,816
2,736,375
254,858
209,244
21,393,569
72,269,461
11,212,597
-
50,845,742
2,243,414
120,319,432
40,081,900
60,846,248
1,305,088
4,174,510
7,583,453
22,160,959
(66,838,207)
(29,615,794)
(19,191,760)
100,788,264
52,479,162
145,987,288
101,137,701
54,288,978
148,723,663
106,962,367
65,165,249
164,039,035
247,876
283,410
62,460
8,901
10,879
4,030
256,777
294,289
66,490
46
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
Governmental
Activities -
Internal Service
Funds
S 746,291 S 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
EXHIBIT 5
47
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2020
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable - current
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Accrued interest payable
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Net pension liability
Total OPEB liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
OPEB related deferred inflows
Deferred amount on refunding
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted by bond ordinance/development agreement
Unrestricted
Total Net Position
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 358,918 $
1,324,941 $
1,536,084
60,326
86,476
20,559
-
1,000,000
-
633,584
732,649
1,000,952
-
340,000
-
3,000,000
895,000
2,199,000
31,181
22,890
250
128,397
64,791
150,776
4,212,406
4,466,747
4,907,621
-
1,000,000
-
9,205,857
10,868,576
7,668,210
-
3,839,794
28,526,473
61,798,641
9,283,948
39,789,058
127,586
261,640
11,413
1,045,836
1,195,762
263,522
201,692
246,512
91,321
72,379,612
26,696,232
76,349,997
76,592,018
31,162,979
81,257,618
182,605
208,782
46,011
11,494
14,048
5,204
19,439
22,561
20,773
213,538
245,391
71,988
34,627,197
25,831,633
68,123,801
-
567,025
2,080,000
(4,213,609)
7,652,510
12,572,118
$ 30,413,588 $
34,051,168 $
82,775,919
48
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
Governmental
Activities -
Internal Service
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
EXHIBIT 5
49
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2020
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain (loss) on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 12,592,624 $ 9,223,000 $ 4,972,308
12,463 49,979 60
12,605,087 9,272,979 4,972,368
3,406,154
2,943,258
1,305,530
757,125
827,417
28,525
851,294
207,802
88,050
1,529,394
1,533,566
483,611
101,283
87,170
58,444
3,425,283
1,212,928
1,921,046
10,070,533
6,812,141
3,885,206
2,534,554 2,460,838 1,087,162
-
-
54,169
171,508
224,393
330,956
-
-
415,924
(1,655,356)
(819,270)
(1,989,336)
1,545
741
(12,629)
(1,482,303)
(594,136)
(1,200,916)
1,052,251
1,866,702
(113,754)
69,575 19,380 12,343, 834
- 949,471 483,282
(174,562) (142,884) -
947,264 2,692,669 12,713,362
29,466,324 31,358,499 70,062,557
$ 30,413,588 $ 34,051,168 $ 82,775,919
50
Business -type Activities -Enterprise Funds
Governmental
Other
Activities -
Parking
Enterprise
Internal
Facilities
Funds
Total
Service Funds
$ 2,173,719 $
5,155,740 $
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
-
(176,565)
(1,180)
(4,641,707)
-
(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
16,3 50,926
195, 310, 511 4,729,476
$ 47,185,335 $
17,956,356 $
212,382,366 $ 4,865,697
EXHIBIT 6
51
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR)
NONCAPHAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Acquisition and construction of capital assets
Proceeds from issuance of debt
Premium on debt issuance
Payment of debt
Interest paid
Intergovernmental grant proceeds
NET CASH PROVIDED (USED FOR) CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
POOLED INVESTMENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Business -tune Activities-Entemrise Funds
Sewage
Disposal
Water
Stormwater
Parking
Works
Utility
Utility
Facilities
$ 12,506,959 $
9,088,706
$ 4,902,513 $
2,200,072
(4,011,612)
(1,916,566)
429,089
(1,139,218)
(3,547,490)
(2,764,086)
(1,350,410)
(802,079)
12,463
49,979
60
139,625
4,960,320
4,458,033
3,981,252
398,400
-
949,471
483,282
414,246
(174,562)
(142,884)
-
(513,374)
415,924
79,942
(174,562)
806,587
899,206
(19,186)
1,545
741
-
(1,737,603)
(3,946,290)
(5,747,444)
-
2,028,430
4,844,418
6,346,265
126,133
40,573
48,688
10,819
5,410
(4,731,132)
(4,133,779)
(2,781,935)
(780,290)
(1,668,972)
(834,341)
(2,066,462)
(194,100)
369,602
(6,067,159)
(4,020,563)
(3,869,155)
(842,847)
168,986
220,128
323,127
39,039
(1,112,415)
1,464,185
1,334,430
(424,594)
5,378,404
9,300,325
15,091,620
1,554,289
$ 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
$ 4,733,441 $ 33,431,691 $ 14,258,473
(2,961,425) (9,599,732) (12,747,587)
(5,060,149) (13,524,214) (2,364,431)
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
(420,117)
(11,851,454)
-
13,345,246
105,490
(14,822)
(12,441,958)
(2,064)
(4,765,939)
369,602
-
(420,503)
(15,220,227)
2,679
427,981
1,179,261
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
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) decrease in receivables
(Increase) decrease in inventories and prepaid items
Increase (decrease)in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) net pension liability
(Increase) decrease in deferred outflows
Increase in deferred inflows
Increase (decrease) in total OPEB liability
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources
Contributions of capital assets from Governmental Activities
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 2,534,554
$ 2,460,838
$ 1,087,162 $
(889,279)
3,425,283
1,212,928
1,921,046
1,173,158
(85,665)
(134,294)
(69,795)
26,353
25,870
(10,125)
19,854
310
(798,386)
749,514
1,067,865
57,659
(6,650)
47,154
3,648
(5,798)
(292,865)
(6,033)
(83,048)
(15,433)
103,382
31,308
28,562
12,149
87,236
129,482
22,337
33,594
(32,439)
(22,739)
(16,379)
5,687
2,425,766
1,997,195
2,894,090
1,287,679
$ 4,960,320
$ 4,458,033
$ 3,981,252 $
398,400
G 60 575 t 10 IRO R d FRR 7aa I _
$ $ $ 7,655,090 $ 194,403
54
EXHIBIT 7
(continued)
Business-tvoe Activities -Enterprise Funds
Governmental
Other Activities -
Enterprise Internal
17—A. Tnf�l Car.,irA F„nAe
$ (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
$ (783,433)
$ - $ 4,777,699 $
$ - $ 7,849,493 $
55
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2020
ASSETS
Cash and pooled cash investments
Accounts receivable
Prepaids
Accrued interest
Total Assets
LIABILITIES
Due to other agency
Total Liabilities
See notes to financial statements.
EXHIBIT 8
Agency
Funds
$ 1,921,801
57,633
7,552
3.351
$ 1,990,337
$ 1,990,337
$ 1,990,337
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 for an understanding of the financial statements of the City and are an integral part
of this report. The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand, Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long -Term Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Pension Plans
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. Prospective Accounting Pronouncements
16. Tax Abatements
57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the government -wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E of
the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to provide
solid waste management for the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible for the day-to-day operations
of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end. During
the year ended June 30, 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 City of Dubuque, Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2008, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
Dubuque Convention and Visitors Bureau is a non-profit corporation organized under the laws of Iowa
and Section 501(c)(3) of the Internal Revenue Code. The Organization's purpose is to strengthen the
Dubuque area economy by competitively marketing the area as a destination for conventions, tour groups,
sporting events and individual travelers. The Organization's articles require that its board members
include one City Council member, the City of Dubuque Mayor and the City Manager. In the event of
dissolution, any assets or property of the Organization shall be distributed to the City of Dubuque, Iowa
after paying or making provision for the payment of all liabilities of the Corporation. The City collects
hotel/motel taxes and forwards 50% to the CVB as the primary source of funds for its operations. The
CVB is presented as a governmental fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau present their
financial information in accordance with the Financial Accounting Standards Board (FASB).
Complete financial statements for the Component Units may be obtained from the City of Dubuque's
Finance Department for the Dubuque Metropolitan Area Solid Waste Agency and Dubuque Area
Convention and Visitors Bureau, and the Economic Development Office for Dubuque Initiatives and
Subsidiaries. These offices are located at: City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 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-911 Committee
Dubuque Drug Task Force
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for services. Likewise, the primary government is reported separately from the legally
separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period (year-end).
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 Increment Financing Fund is used to account for the receipt of property taxes, for the
payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long-term debt service.
The Community Development Fund is used to account for the use of Community Development
Block Grant funds as received from federal and state governmental agencies.
The Debt Service Fund is used to account for the accumulation of resources and payment of
general obligation bond principal and interest from governmental resources and special
assessment bond principal and interest from special assessment levies when the government is
obligated in some manner for the payment.
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account for the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City's water facilities and
services.
The Stormwater Utility Fund is used to account for the operations of the City's stormwater
services.
The Parking Facilities Fund is used to account for the operations of the City -owned parking
ramps and other parking facilities.
Additionally, the City reports the internal service fund type. Internal service funds are used to account
for general, garage, stores/printing, health insurance, and worker's compensation insurance services
provided by one department to other departments of the City on a cost -reimbursement basis. These funds
cannot be used to support City activities.
Fiduciary funds, other than agency funds, use the economic resources measurement focus and the full
accrual basis of accounting. Agency funds use the full accrual basis of accounting but do not have a
measurement focus and therefore report only assets and liabilities. The City reports Agency Funds to
account for assets held by the City as an agent under the cable franchise agreement, for the Dubuque
Racing Association, and for the decommissioning of the prior Flexsteel site. 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2020
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements.
Exceptions to this general rule are charges between the City's water and sewer function and various other
functions of the City. Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net
Position/Fund Balance
Deposits and Investments
The City's cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
The cash balances of most City funds are pooled and invested. Interest earned on investments is recorded
in the General Fund unless otherwise provided by law. Investments are stated at fair value except for the
investment in the Iowa Public Agency Investment Trust and non-negotiable certificates of deposit which
are valued at amortized cost.
For purposes of the Statement of Cash Flows, all short-term cash investments that are highly liquid are
considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash
and, at the day of purchase, have a maturity date no longer than three months.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at year-end
are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governmental activities and business -type activities are reported in the government -wide
financial statements as "internal balances."
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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
DUNE 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 agreement, or Iowa
Finance Authority housing program agreement.
Certain assets of the Dubuque Metropolitan Area Solid Waste Agency are classified as restricted assets
because their use is restricted by state statute for certain specified uses.
Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type
activities columns in the government -wide statement of net position and in the proprietary funds
statement of net position. Capital assets are defined by the government as assets with an initial, individual
cost of more than $100,000 for infrastructure and intangible assets, $20,000 for building assets, and
$10,000 for the remaining assets, and an estimated useful life of more than one year. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at acquisition value at the date of donation. The costs of normal maintenance and repair not
adding to the value of the asset or materially extending asset lives are not capitalized. All of the City's
infrastructure has been recorded, including infrastructure acquired prior to June 30, 1980.
Major outlays for capital assets and improvements are capitalized as projects are constructed. There was
no interest incurred during the construction phase of capital assets of business -type activities to capitalize
with the value of the assets constructed in the current year.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Assets
Years
Buildings
40 to 125
Improvements other than buildings
15 to 50
Machinery and equipment
2 to 30
Infrastructure and intangibles
15 to 75
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using
the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuance's are reported as other financing sources while
discounts on debt issuance's are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources, and deferred inflows
of resources related to pensions, and pension expense, information about fiduciary net position of the
Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System
(Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on
the same basis as they are reported by the Systems'. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. For the governmental activities, the net pension liability is
generally liquidated by the General Fund, Community Development Fund, and Seciton VIII Housing
Fund.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2020
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Total OPEB Liability
For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB and
OPEB expense, information has been determined based on the City's actuary report. For this purpose,
benefit payments are recognized when due and payable in accordance with the benefit terms. For the
governmental activities, the total OPEB liability is generally liquidated by the General Fund, Community
Development Fund, and Section VIII Housing Fund.
Deferred Inflows of Resources
Deferred inflows of resources represents an acquisition of net position that applies to a future period(s)
and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues
are measurable, they are not available. Available means collected within the current year or expected to
be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of
resources in the governmental fund financial statements represent the amount of assets that have been
recognized, but the related revenue has not been recognized since the assets are not collected within the
current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current
year. Deferred inflows of resources consist of property tax receivable and other receivables not collected
within sixty days after year end.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax
and tax increment financing receivable that will not be recognized as revenue until the year for which
they are levied, and unrecognized items not yet charged to pension 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 $4,034,501 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 for 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
DUNE 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 or federal
laws or imposed by law through constitutional provisions or enabling legislation.
• Committed: Committed fund balances can be used only for specific purposes determined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year-end. Those committed amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by resolution.
• Assigned: Assigned fund balances contain self-imposed constraints of the government to be used
for a particular purpose. Intent can be expressed by the City Council or by an official or body to
which the City Council delegates the authority. The City Council has by resolution delegated the
authority to the City Manager, and Director of Finance and Budget.
• Unassigned: Unassigned fund balances are amounts not included in the other spendable
classifications. Positive unassigned fund balance amount is only appropriate in the general fund.
However in governmental funds, other than the general fund, if expenditures incurred for specific
purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may
be necessary to report a negative unassigned fund balance in that fund.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental
fund financial statements a flow assumption must be made about the order in which the resources are
considered to be applied. It is the government's policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further, when the components
of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
The budget guideline of the City of Dubuque maintains a General Fund working balance or operating
reserve of 20% of the total General Fund operating revenue requirements. An operating reserve or
working balance must be carried into a fiscal year to pay operating costs until tax money, or other
anticipated revenue is received.
The State of Iowa recommends a reasonable amount for a working balance as (a) anticipated revenues for
the first three months of the fiscal year, less anticipated expenditures or (b) 5% of the total General Fund
operating budget, excluding fringes and tort liability expenses.
The City's rating agency, Moody's Investor Service, recommends a reserve balance of at least 10% for
"A" rated cities. This is based on the fact that a large portion of the revenue sources are beyond the City's
control and therefore uncertain.
None of the City's policies qualify as stabilization arrangements.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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
DUNE 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 accordance with Chapter 12C of the Code of Iowa. This
chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
The carrying amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$13,322,551, 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 Maturities (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
$ 13,894,611 $ 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 or improvement
certificates of a drainage district.
Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Permanent Trust
Fund.
The City uses the fair value hierarchy established by generally accepted accounting principles based on
the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are
significant unobservable inputs.
All of the City's investments, except for U.S. Treasury Securities, Federal Agency Obligations, and
Managed Accounts L/T CD which were valued by the custodians of the securities using pricing models
based on credit quality, time to maturity, stated interest rates, and market -rate assumptions (Level 2
inputs), were determined using the last reported sales price at current exchange rates. (Level 1 inputs)
Interest Rate Risk. The City's investment policy limits the investment of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Risk. The City's investment policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City's investments in Money Market Funds and US Agencies were
rated AAA.
Concentration of Credit Risk. The City's investment policy does not allow for a prime bankers'
acceptance or commercial paper and other corporate debt balances to be greater than ten percent of its
total deposits and investments. The policy also limits the amount that can be invested in a single issue to
five percent of its total deposits and investments. The City held no such investments during the year.
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 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, community development, road use
tax, cable TV, general construction, transit system, general service, garage service, and stores/printing
funds.
The Dubuque Metropolitan Area Solid Waste Agency had a money market account valued at $1,487,929
as of June 30, 2020.
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 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
Carrying amount of deposits
Total
Cash and pooled cash investments
Cash and pooled cash investments - temporarily restricted
Total
$ 1,200
13,322,551
$ 13,323,751
$ 7,962,484
5,361,267
$ 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 -temporarily 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 investments
$
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 for low income citizens. Loans may contain a forgivable portion if recipient meets specific
conditions such as job creation for economic development or residency requirements community
development. Loans are secured by mortgage liens against the property.
At June 30, 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/l/2022
17,785
9,556
Gronen Adaptive
300,000
2
2006
5/l/2036
148,552
8,043
Plastic Center, Inc.
270,000
3
2020
6/l/2040
50,044
-
HJD Landlord LLC
466,000
3
2016
4/l/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/l/2030
3,299,296
119,314
40 Main Real Estate Loan
156,583
-
2009
8/l/2022
156,583
-
Sales Tax Construction
DB&T Community
Development Corporation
1,700,000
-
2012
2/l/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
Community 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
DUNE 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
Works
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 hi
Out
Increases
Decreases
Balance
Capital assets, not being
depreciated:
Land
$ 78,777,621 $
$
$ 1,005,397
$ (451,489)
$ 79,331,529
Construction 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
Infrastructure
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)
Infrastructure
(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
Balance In
Capital assets, not being
depreciated:
Land $ 24,805,263 $ - $
Construction in progress 11,853,774 7,849,493 _
Total Capital assets, not
being depreciated 36,659,037 7,849,493
Capital assets, being
depreciated:
Buildings
159,586,137
Improvements other
than buildings
177,818,388
Machinery and equipment
113,861,028
Total capital assets, being
depreciated
451,265,553
Less accumulated
depreciation for:
Buildings
(55,366,625)
Improvements other
than buildings
(36,575,209)
Machinery and equipment
(44,480,324)
Total accumulated
depreciation
(136,422,158)
Total capital assets, being
depreciated, net
314,843,395
Transfers Ending
Out Increases Decreases Balance
$ - $ (11,440) $ 24,793,823
17,557,084 (3,147,026) 34,113,325
- 17,557,084 (3,158,466) 58,907,148
- -
(346,112)
159,240,025
- 916,199
(184,291)
178,550,296
- 2,922,367
(1,709,810)
115,073,585
- 3,838,566
(2,240,213)
452,863,906
- (2,118,361)
346,112
(57,138,874)
- (3,004,617)
147,340
(39,432,486)
_ - (3,768,419)
1,542,838
(46,705,905)
- (8,891,397)
2,036,290
(143,277,265)
- (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
DUNE 30, 2020
NOTE 6 — CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency (Component Unit):
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Capital assets, being
depreciated:
Buildings
Improvements other
than buildings
Machinery and equipment
Total capital assets, being
depreciated
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Machinery and equipment
Total accumulated
depreciation
Total capital assets, being
depreciated, net
Dubuque Metropolitan Area
Solid Waste, capital assets
Beginning Ending
Balance Increases Decreases Balance
$ 2,737,804 $ - $ - $ 2,737,804
556,340 2,990,607 (251,348) 3,295,599
3,294,144 2,990,607 (251,348) 6,033,403
386,779
386,779
16,901,278 251,348 (1,249,069) 15,903,557
4,112,793 332,000 (454,625) 3,990,168
21,400,850 583,348 (1,703,694) 20,280,504
(74,124) (13,938)
(88,062)
(7,467,760) (351,046) 1,249,069 (6,569,737)
(2,804,766) (199,240) 234,025 (2,769,981)
(10,346,650) (564,224) 1,483,094 (9,427,780)
11,054,200 19,124 (220,600) 10,852,724
$ 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
DUNE 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)
978,111
Total capital assets, being
depreciated, net
11,528,362
(474,738)
(11,053,624)
Dubuque Initiatives,
capital assets
$ 11,628,362
$ (474,738)
$ (11,153,624) $
The Dubuque Initiatives 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
DUNE 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
Corporate Purpose Series 2012A
03/15/2012
06/01/14-06/01/31
2.00-3.00
$ 4,380,000 $
2,890,000
Corporate Purpose
and Refund Series 2012B
03/15/2012
06/01/13-06/01/31
2.00-3.13
7,495,000
4,900,000
Corporate Purpose
06/28/2012
06/01/14-06/01/32
2.00-3.90
6,965,000
4,810,000
(taxable) Series 2012C
Corporate Purpose Series 2012D
06/28/2012
06/01/14-06/01/32
2.00-3.46
7,175,000
-
Corporate Purpose Series 2012E
12/12/2012
06/01/14-06/01/32
2.00-3.00
3,640,000
2,190,000
Corporate Purpose
(taxable) Series 2012F
12/10/2012
06/01/14-06/01/22
1.00-2.20
1,035,000
275,000
Corporate Purpose Series 2012H
12/10/2012
06/01/15-06/01/32
2.00-3.00
2,385,000
1,520,000
Corporate Purpose (taxable)
and Refund Series 2012I
12/04/2013
06/01/13-06/01/21
0.30-2.20
7,285,000
50,000
Corporate Purpose Series 2014B
12/08/2014
06/01/16-06/01/34
3.00-3.65
18,835,000
15,845,000
Corporate Purpose (taxable)
Series 2014C
12/08/2014
06/01/16-06/01/34
3.00-4.16
7,615,000
7,045,000
Corporate Purpose Series 2016A
04/04/2016
06/01/17-06/01/35
2.00-3.75
2,830,000
2,310,000
Corporate Purpose Refunding
Series 2016B
04/04/2016
06/01/16-06/01/28
2.00-3.00
10,920,000
5,025,000
Corporate Purpose Series 2016C
04/04/2016
06/01/17-06/01/35
2.00-3.13
4,145,000
3,420,000
Corporate Purpose Series 2017A
04/17/2017
06/01/18-06/01/30
3.00
8,495,000
4,925,000
Corporate Purpose
Refunding Series 2017B
04/17/2017
06/01/18-06/01/30
3.00
9,745,500
7,730,000
Corporate Purpose
Refunding Series 2017C
04/17/2017
06/01/18-06/01/30
3.00-3.45
2,120,000
1,745,000
Corporate Purpose Series 2018A
03/19/2018
06/01/18-06/01/31
3.00-4.00
4,950,000
4,300,000
Corporate Purpose
Refunding Series 2018B
03/19/2018
06/01/18-06/01/26
3.00-3.15
1,005,000
785,000
Corporate Purpose Series 2019A
06/20/2019
06/01/22-06/01/39
3.00
2,240,000
2,240,000
Corporate Purpose Series 2019B
06/20/2019
06/20/20-06/01/27
3.00
860,000
755,000
Corporate Purpose
Refunding Series 2019C
07/03/2019
06/01/20-06/01/32
3.00
4,240,000
3,905,000
$ 118,360,500 $
76,665,000
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2020
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year
June 30
2021
2022
2023
2024
2025
2026-2030
2031-2035
2036-2039
Total
Governmental Activities
Principal
$ 4,578,192
3,452,405
3,334,048
3,079,188
3,186,488
15,692,123
7,268,961
593,748
$ 41,185,153
Interest
$ 1,227,824
1,108,727
1,022,235
936,395
856,404
2,945,283
746,305
74,959
$ 8,918,132
Business -type Activities
Principal
Interest
$ 2,916,809
$ 1,097,008
3,007,595
1,013,605
3,065,952
927,079
3,020,812
835,757
2,983,512
745,541
13,807,558
2,382,542
6,596,358
556,627
81,251
6,191
$ 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 Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Diamond Jo Parking Ramp 10/16/07 06/01/11-06/01/37 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
June 30
2021
2022
2023
2024
2025
2026-2030
2031-2035
2036-2037
Total
Governmental Activities
Principal
$ 590,000
635,000
680,000
730,000
785,000
4,910,000
7,045,000
3,610,000
$ 18,985,000
Interest
$ 1,423,875
1,379,625
1,332,000
1,281,000
1,226,250
5,173,625
3,014,625
411,000
$ 15,242,000
82
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:
Date of
Purpose
Issue
Maturity Dates
Water Utility Series 2008D
11/04/2008
06/01/10-06/01/23
Water Utility Series 201OD
09/21/2010
06/01/12-06/01/30
Sales Tax Incremental 2014
06/14/2014
06/01/23-06/01/29
Sales Tax Incremental 2015A
06/15/2015
06/01/23-06/01/31
Amount Amount
Interest Originally Outstanding
Rates Issued End of Year
3.00-5.00 % $ 1,195,000
$ 315,000
2.00-4.00 5,700,000
3,850,000
4.00-5.00 7,190,000
7,190,000
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 shall at all times prescribe, fix, and maintain and collect rates, fees and other charges for their
services and facilities furnished by the system that are fully sufficient at all times which will (a) equal at
least 125% of the debt service requirement of all bonds and parity obligations then outstanding for the
year of computation; (b) enable the City to make all required payments, if any, into the debt service
reserve fund. For the current year, principal and interest paid and total customer net revenues (operating
revenues, plus interest earnings, plus depreciation expense) were $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
DUNE 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 Service Reserve
Account that may secure one or more series of Bonds. Upon the issuance of the Series 2016A Bonds a
deposit of $2,080,000 was made into the Debt Service Reserve Account, and the Series 2016A Bonds
shall be secured by amounts held in the Debt Service Reserve Account. The Series 2014 Bonds are
revenue bonds secured by and payable as provided in the Master Resolution from all Pledged Revenues
which are pledged under the Master Resolution to the payment of the principal and interest of the Series
2014 Bonds. There shall be no deposit made into the Debt Service Reserve Account for Series 2014
Bonds, there is no debt service reserve requirement applicable to the Series 2014 Bonds, and Series 2014
Bonds shall not be secured by any amounts held in the Debt Service Reserve Account.
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year
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
DUNE 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:
Purpose
Date
Authorized
Final
Maturity
Date
Clear Wells
10/18/07
06/01/28
West 32nd St. Detention Basin
01/14/09
06/01/28
North Catfish Creek Stormwater
01/13/10
06/01/30
North Catfish Creek Sewer
01/13/10
06/01/30
Water Meter Replacement
02/12/10
06/01/30
Water and Resource Recovery Center
08/18/10
06/01/39
Bee Branch Stormwater
10/27/10
06/01/41
Cogeneration
05/17/13
06/01/33
Meter Replacement Sewer
05/31/13
06/01/30
Bee Branch Stormwater
06/19/15
06/01/37
CIWA Purchase
07/07/17
06/01/37
Roosevelt Tower
09/22/17
06/01/40
Kerper Blvd
03/08/19
06/01/38
Bee Branch Culverts
06/07/19
06/01/40
Interest
Rates
Amount
Authorized
Amount
Outstanding
End of Year
Current
Portion
2.00 % $
1,037,000
$ 435,000
$ 48,000
2.00
1,847,000
876,000
98,000
2.00
800,000
463,000
40,000
2.00
912,000
529,000
46,000
2.00
7,676,000
1,991,000
154,000
2.00
74,285,000
57,961,000
2,538,000
3.25
7,850,000
6,224,000
211,000
2.00
3,048,000
2,116,000
144,000
3.25
3,058,000
1,991,000
154,000
1.43
32,446,000
27,682,726
1,176,000
2.00
10,198,000
4,908,761
512,000
2.00
4,400,000
2,844,187
181,000
0.75
2,763,000
2,201,642
118,000
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 Stormwater Fund. The debt is owned by
the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $800,000. This line of credit was issued to
finance the North Catfish Creek improvements by the Stormwater Fund. The interest rate for this line of
credit is 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; therefore, constitutes direct borrowing.
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $912,000. This line of credit was issued to
finance the North Catfish Creek improvements by the Sanitary Sewer Fund. The interest rate for this line
of credit is 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
2041. The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
On May 17, 2013 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $3.048 million. This line of credit was issued to
finance the Water & Resource Recovery Center Cogeneration by the Sanitary Sewer Fund. The interest
rate for this line of credit is 3.25%. Annual payments began in Fiscal Year 2011, with the last payment in
Fiscal Year 2041. The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned
by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On May 31, 2013 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $3.058 million. This line of credit was issued to
finance the Meter Replacements by the Sanitary Sewer Fund. The interest rate for this line of credit is
3.25%. Annual payments began in Fiscal Year 2011, with the last payment in Fiscal Year 2041. The note
payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
On June 19, 2015 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $31.418 million. This line of credit was issued to
finance the Upper Bee Branch Creek Restoration project and Catfish Creek Sponsorship project by the
Sales Tax Increment Fund. The interest rate for this line of credit is 1.43%. Annual payments began in
Fiscal Year 2016, with the last payment in Fiscal Year 2037. The note payable is payable solely from the
Sales Tax Increment Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes
direct borrowing.
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 agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $16.382 million. This line of credit was issued to
finance the construction of the Bee Branch Creek Restoration Railroad Culverts project by the
Stormwater Fund. The interest rate for this line of credit is 2.00%. Annual payments will begin in Fiscal
Year 2020, with the last payment in Fiscal Year 2040. The note payable is payable solely from the
Stormwater Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct
borrowing.
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
DUNE 30, 2020
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year
Business -type
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
01/01/09-07/01/23
5.0 %
$ 400,000
$ 152,330
$ 63,545
Iowa Finance Authority
08/26/11
06/01/20-06/01/30
3.0
4,500,000
3,299,296
201,865
Bowling & Beyond Inc.
10/15/12
12/04/12-12/04/32
-
1,000,000
600,000
50,000
Central Iowa Water
12/01/16
12/01/17-12/01/21
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 $9,111 to $18,645 with final
maturity in 2024. The proceeds were used to purchase parking lots 87, 88, and the north 20 feet 3 inches of
lot 86. The debt is owned by Dubuque Initiatives and; therefore, constitutes a direct borrowing.
On August 26, 2011, the City issued $4.5 million loan. Interest is payable each December 1 and June 1 at a
rate of 3.00%. Principal payments are due each December 1 and June 1 and range from $82,922 to
$2,582,540 with final maturity in 2030. The proceeds were used to pay costs of funding workforce housing
assistance loans to private developers constructing improvements and rehabilitating historic buildings for
residential and commercial use in the Greater Downtown Urban Renewal Area. The debt is owned by the
Iowa Finance Authority and; therefore, constitutes a direct borrowing.
On October 15, 2012, the City terminated the leases with Bowling & Beyond Dubuque, Inc. and entered into
a lease buyout agreement. The purchase price is $1.0 million. There is no interest. Principal payments are
due each July 25 in the amount of $50,000 with final maturity in 2032. The debt is owned by Michael K.
Schmidt and; therefore, constitutes a direct borrowing.
88
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2020
NOTE 7 - LONG-TERM DEBT (continued)
On December 1, 2016, the City issued a $5,000,000 loan. Interest is payable each December 1 at a rate of
3.00%. Principal payments of $1 million are due each December 1 with final maturity in 2022. The proceeds
were used to purchase water supply, service and territory. The debt is owned by Iowa Association of
Regional Utilities (DB/A Central Iowa Water Association) and; therefore, constitutes a direct borrowing.
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year
June 30
2021
2022
2023
2024
2025
2026-2030
2031-2032
Total
Governmental Activities
Principal
$ 251,865
257,921
264,159
270,583
277,201
2,477,567
100,000
$ 3,899,296
Interest
$ 98,979
92,923
86,685
80,261
73,643
216,665
Business -type Activities
Principal Interest
$ 1,063,545 $ 72,899
1,034,205 34,017
35,937 2,285
18,645 466
$ 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 obligation 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
Loans payable
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:
General obligation bonds
$
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
-
(391,433)
32,706,267
340,000
Notes payable
111,655,589
10,478,152
(5,168,094)
116,965,647
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
DUNE 30.2020
NOTE 7 — LONG-TERM DEBT (continued)
Legal Debt Margin Calculation.
Estimated actual value
Debt limit - 5% of total actual
valuation
Debt applicable to limit
Legal debt margin
$ 4,785,964,957
239,298,248
(109,020,970)
$ 130,277,278
Dubuque Metropolitan Area Solid Waste Agency
General Obligation Bonds. Dubuque County, Iowa issued a general obligation landfill facilities bond to
provide funds for the acquisition and construction of major capital facilities.
The Dubuque Area Metropolitan Solid Waste Agency will reimburse Dubuque County for interest and
principal payments from operating revenue. These bonds generally are issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. The amount outstanding as
of June 30, 2020 is as follows:
Purpose
Landfill Facility
Landfill Facility
Date of Issue
12/30/2014
12/28/2016
Interest
Maturity Date Rate
06/01/16-06/01/34 2.0-4.0 %
06/01/17-06/01/36 3.0
Amount Amount
Originally Outstanding
Issued End of Year
$ 4,500,000 $ 3,535,000
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
2021
$ 425,000
2022
435,000
2023
450,000
2024
465,000
2025
475,000
2026-2030
2,605,000
2031-2035
2,725,000
2036
340,000
Total
$ 7,920,000
Interest
$ 238,359
225,609
210,459
198,609
186,065
719,488
300,435
11,050
$ 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
of Year Additions
General obligation bond $ 8,330,000 $
Unaccreted premium 217,529 _
Total general obligation bond $ 8,547,529 $
Balance Due Within
Reductions End of Year One Year
$ (410,000) $ 7,920,000 $ 425,000
- (12,857) 204,672 -
$ (422,857) $ 8,124,672 $ 425,000
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 City
assumes liability for deductibles and claims in excess of coverage limitations.
The City has established a Health Insurance Reserve Fund for insuring benefits provided to City
employees and covered dependents which is included in the Internal Service Fund Type. Health benefits
were self -insured up to an individual stop -loss amount of $120,000, and an aggregate stop -loss of 125%
of expected claims. Coverage from a private insurance company is maintained for losses in excess of the
stop -loss amount. All claims handling procedures are performed by a third -party claims administrator.
Incurred but not reported claims have been accrued as a liability based upon the claims administrator's
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense.
The City has established a Workers' Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Through May 15, 2020 workers'
compensation benefits were self -insured up to a specific stop -loss amount of $750,000, and an
aggregate -stop loss consistent with statutory limits for 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 liability 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:
Liabilities at June 30, 2018
Claims and changes in estimates during fiscal year 2019
Claim payments
Liabilities at June 30, 2019
Claims and changes in estimates during fiscal year 2020
Claim payments
Liabilities at June 30, 2020
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
$ 499,834
$ 996,687
9,637,510
693,550
(9,161,398)
(667,147)
975,946
1,023,090
10,259,919
-
(10,362,276)
(523,533)
$ 873,589
$ 499,557
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 membership and are maintained not to exceed 300 percent of the total current
members' basis rates or to comply with the requirements of any applicable regulatory authority having
jurisdiction over the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual property
operating contributions which are necessary to fund, on a cash basis, the Pool's general and
administrative expenses and reinsurance premiums, all of which are due and payable in the current year,
plus all or any portion of any deficiency in capital. Any year-end operating surplus is transferred to
capital. Deficiencies in operations are offset by transfers from capital and, if insufficient, by the
subsequent year's member contributions. The City has property insurance coverage in addition to the
Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City's annual contributions to the Pool for
the year ended June 30, 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
DUNE 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 City 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
DUNE 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 City pays the full cost of a $1,000 policy in the fully -insured life
insurance plan.
To be eligible for the health insurance coverage, retirees must be at least 55 years old, have completed 4
years of service, and be vested with either the Iowa Public Employee's Retirement System (IPERS) or the
Municipal Fire and Police Retirement System of Iowa (MFPRSI). In addition to the health eligibility
coverage requirements, one must have belonged to a bargaining group to be eligible for life insurance
benefits. There are approximately 543 active and 46 retired members in the plan, as of most recent
actuarial valuation report.
Funding Policy - The contribution requirements of plan members are established and may be amended by
the City. The City currently finances the retiree benefit plan on a pay-as-you-go basis.
Total OPEB Liability - The City's OPEB liability of $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 Liability beginning of year
Changes for the year:
Service cost
Interest
Other changes
Changes in experience
Changes in assumptions
Benefit payments
Net Changes
Total OPEB Liability end of year
Total OPEB Liabiilty
$ 6,121,366
288,187
165,496
(49,951)
(242,264)
(19,983)
(380,158)
(238,673)
$ 5,882,693
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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
Rates of salary increase
effective June 30, 2020
Discount rate
effective June 30, 2020
Healthcare cost trend rate
effective June 30, 2020
3.00% per annum
4.00% per annum,
including inflation
2.66% compounded annually,
including inflation
6.50% initial rate decreasing by 0.14%
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.
Projected 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 Changes in the Healthcare Cost Trend Rates - The
following presents the total OPEB Liability of the City, as well as what the City's total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% lower (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 $ 5,249,207 $ 5,882,693 $ 6,633,694
96
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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:
Changes in Experience $
Changes in Assumptions
Deferred Outflows of Resources Deferred Inflows of Resources
(259,614)
$ 218,458
116,769
(259,614) $
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 Agency Specific (DMASWA) OPEB Disclosures
Total OPEB Liability- DMASWA OPEB liability of $112,052 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
$ 112,052
335,227
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.
Total OPEB Liability
1% Decrease (1.66%) Discount Rate (2.66%) 1% Increase (3.66%)
121,066 $ 112,052 $ 103,663
Sensitivity of the DMASWA's Total OPEB Liability to Changes in the Healthcare Cost Trend Rates- The
following presents the total OPEB Liability of the DMASWA, as well as what the DMASWA's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (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:
Changes in Experience
Changes in Assumptions
Deferred Outflows of Resources Deferred Inflows of Resources
4,945
4,945
$ (4,161)
(2,224)
(6,385)
The amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB
expense as follows:
Year Ending
Deferred Outflows of
June 30 Resources
Deferred Inflows of
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
DUNE 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 9117, Des Moines, Iowa 50306-9117 or at www.ipers.org.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits — A Regular member may retire at normal retirement age and receive monthly benefits
without an early -retirement reduction. Normal retirement age is age 65, anytime after reaching age 62
with 20 or more years of covered employment, or when the member's years of service plus the member's
age at the last birthday equals or exceeds 88, whichever comes first. These qualifications must be met on
the member's first month of entitlement to benefits. Members cannot begin receiving retirement benefits
before age 55. The formula used to calculate a Regular member's monthly IPERS benefit includes:
A multiplier based on years of service.
The member's highest five-year average salary, except members with service before June 30,
2012 will use the highest three-year average salary as of that date if greater than the highest
five-year average salary.
If a member retires before normal retirement age, the member's monthly retirement benefit will be
permanently reduced by an early -retirement reduction. The early -retirement reduction is calculated
differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the
reduction is 0.25% for each month that the member receives benefits before the member's earliest normal
retirement age. For service earned starting July 1, 2012, the reduction is 0.50% for each month that the
member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same
for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began
receiving benefits prior to July 1990 receive a guaranteed dividend with the regular November benefit
payments.
99
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 will receive a lifetime annuity or a lump -sum payment equal to the present actuarial value of
the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies
after retirement, death benefits depend on the benefit option the member selected at retirement.
Contributions - Contribution rates are established by IPERS following the annual actuarial valuation,
which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. State
statute limits the amount rates can increase or decrease each year to 1 percentage point. IPERS
Contribution Rate Funding Policy requires that the actuarial contribution rate be determined using the
"entry age normal" actuarial cost method and the actuarial assumptions and methods approved by the
IPERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial
liability payment based on a 30-year amortization period. The payment to amortize the unfunded
actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization
Method adopted by the Investment Board.
In fiscal year 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.
City Specific IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2020, the 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.
100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2020
NOTE 11—EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2020, the City recognized pension expense of $3,243,411. At June 30, 2020,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Differences between expected and
actual experience
Changes of assumptions
Net difference between projected and actual
earnings on IPERS' investments
Changes in proportion and differences between
City's contributions and City's proportionate share
of contributions
City contributions subsequent to the
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
53,645
2,072,700
2,459,936
$ 695,737
2,180,553
502,336
$ 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)
Sensitivitv of the Citv's Proportionate Share of the Net Pension Liabilitv to Chances 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.
101
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 Agency Specific (DMASWA) IPERS Disclosures
Net Pension Liabilities. Pension Expense. and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2020, the DMASWA reported a liability of $489,134 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 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:
Differences between expected and
actual experience
Changes of assumptions
Net difference between projected and actual
earnings on IPERS' investments
Net changes in proportion and differences between
Agency's contributions and Agency's proportionate
share
of contributions
Agency contributions subsequent to the
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
1,356 $ 17,587
52,393
55,120
12,698
62,182
$ 115,931 $ 85,405
102
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE II —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 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
$ 5,018
2022
(15,820)
2023
(10,341)
2024
(9,351)
2025
(1,162)
$ (31,656)
Sensitivitv of the Aeencv's Proportionate Share of the Net Pension Liabilitv to Chances in the Discount
Rate - The following presents the Agency's proportionate share of the net pension liability calculated
using the discount rate of 7.00%, as well as what the Agency's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1% lower (6.00%) or 1% higher
(8.00%) than the current rate.
1%
Discount
1%
Decrease
Rate
Increase
(6.00)%
(7.00)%
(8.00)%
Agency's proportionate share of
the net pension liability: $ 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
(effective June 30, 2017)
Rates of salary increase
(effective June 30, 2017)
Long-term Investment rate of return
(effective June 30, 2017)
Wage Growth
(effective June 30, 2017)
2.60% per annum
3.25 to 16.25% average, including inflation.
Rates vary by membership group.
7.00% , compounded annually, net of investment
expense, including inflation.
3.25% per annum based on 2.60% inflation
and 0.65% real wage inflation
103
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2020
NOTE II —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 summarized in the following table:
Asset
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Domestic equity
22 %
5.60%
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 projected benefit payments to determine the total pension liability.
IPERS' Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued IPERS financial report which is available on IPERS' website at
www.ipers.org.
Payables to IPERS - At June 30, 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 411 of the Code of Iowa. Employees of the City are provided with pensions
through a cost -sharing multiple employer defined benefit pension plan administered by MFPRSI.
MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake
Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mfprsi.org.
MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules
thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents.
The following brief description is provided for general informational purposes only. Refer to the plan
documents for more information.
Pension Benefits - Members with 4 or more years of service are entitled to pension benefits beginning at
age 55. Full service retirement benefits are granted to members with 22 years of service, while partial
benefits are available to those members with 4 to 22 years of service based on the ratio of years
completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a
refund of their contribution only, with interest, for the period of employment.
Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3
years becomes the member's average final compensation. The base benefit is 66% of the member's
average final compensation. Members who perform more than 22 years of service receive an additional
2% of the member's average final compensation for each additional year of service, up to a maximum of
8 years. Survivor benefits are available to the beneficiary of a retired member according to the provisions
of the benefit option chosen, plus an additional benefit for each child. Survivor benefits are subject to a
minimum benefit for those members who chose the basic benefit with a 50% surviving spouse benefit.
Active members, at least 55 years of age, with 22 or more years of service have the option to participate
in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member
who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a
3, 4, or 5 year DROP period. By electing to participate in DROP, the member is signing a contract
indicating the member will retire at the end of the selected DROP period. During the DROP period the
member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for
the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of
the member's retirement benefit at the member's earliest date eligible and 100% if the member delays
enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will
be distributed to the member in the form of a lump sum or rollover to an eligible plan.
Disability and Death Benefits — Disability benefits may be either accidental or ordinary. Accidental
disability is defined as a permanent disability incurred in the line of duty, with benefits equivalent to the
greater of 60% of the member's average final compensation or the member's service retirement benefit
calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the
greater of 50% of the member's average final compensation for those with 5 or more years of service or
the member's service retirement benefit calculation amount and 25% of average final compensation for
those with less than 5 years of service.
105
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 411.6 of the Code of Iowa which
states a standard formula for the increases.
The surviving spouse or dependents of an active member who dies due to a traumatic personal injury
incurred in the line of duty receives a $100,000 lump -sum payment.
Contributions - Member contribution rates are set by state statute. In accordance with Chapter 411 of the
Code of Iowa, the contribution rate was 9.40% of earnable compensation for the year ended June 30,
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
DUNE 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:
Net difference between expected and
actual experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
City contributions and proportionate share
of contributions
City contributions subsequent to the
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,059,736 $ 287,981
1,545,167 133,943
1,695,596 -
247,343 1,167,309
3,631,952 -
$ 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
511,965
2025
31,403
$ 2,958,609
107
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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
Rates of salary increase
Investment rate of return
3.00% per annum
3.75% to 15.11% including inflation
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:
Asset Class
Long -Term Expected
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
DUNE 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 projected benefit payments to determine the total pension liability.
Sensitivity of Ci . 's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate -
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.50%, as well as what the city's proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1.00% lower (6.50%) or 1.00% higher (8.50%) than
the current rate.
1%
Decrease
(6.50)%
City's proportionate share of
the net pension liability: $ 50,107,415
Discount
Rate
(7.50)%
$ 30,775,196
1%
Increase
(8.50)%
$ 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 MFPRSI's website at
www.mfprsi.org.
Payables 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
DUNE 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 for implementation and enforcement of those requirements and
have been given flexibility to tailor requirements to accommodate local conditions that exist. A variety of
financial mechanisms can be used to demonstrate compliance with federal and state financial assurance rules.
The Agency utilizes the dedicated fund mechanism, which is funded through the tipping fees it receives.
The Agency files an annual report with the State to provide compliance with its legal requirements of
maintaining a balance per the prescribed formula. Any adjustments to the account are made prior to June 30.
The Agency is required to estimate total landfill closure and post -closure care costs and recognize a portion
of these costs each year based on the percentage of estimated total landfill capacity used that period.
Estimated total costs, for closure and post -closure, would consist of four components: (1) the cost of
equipment and facilities used in post -closure monitoring and care, (2) the cost of final cover (material and
labor), (3) the cost of environmental monitoring of the landfill during the post -closure period and (4) the cost
of any environmental cleanup required after closure. Estimated total cost is based on an engineer's estimate
for these services is required to be updated annually for changes due to inflation or deflation, technology,
and/or changes to applicable laws or regulations.
The Agency's estimated closure and post -closure care expected costs are as follows:
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
DUNE 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 for 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 for leases by governments.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, will be
effective for the fiscal year June 30, 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 Equity 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 majority equity interest in a legally separate
organization and to improve the relevance of financial statement information for certain component units.
Statement No. 91, Conduit Debt Obligations, will be effective for the fiscal year June 30, 2023. The primary
objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers
and eliminated diversity in practice associated with (1) commitments extended by issuers, (2) arrangements
associated with conduit debt obligations, and (3) related note disclosures.
ill
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 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 for 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 or to pay the developers a predetermined dollar amount. No other commitments were
made by the City as a part of these agreements.
For the year ended June 30, 2020, the City abated $2,454,454 of property tax under the urban renewal and
economic development projects.
113
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114
Required Supplementary Information
June 30, 2020
City of Dubuque, Iowa
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
RECEIPTS
Property tax
Tax increment financing
Other City tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for fees and service
Special assessments
Miscellaneous
Total Receipts
EXPENDITURES
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business -type activities
Total Expenditures
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES, NET
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
BALANCE, BEGINNING OF YEAR
BALANCE, ENDING OF YEAR
Actual
$ 25,908,220
9,959,562
17,995,431
1,503,252
14,474,768
40,369,620
39,175,530
113,709
8,896,634
158,396,726
29,268,525
12,307,869
970,434
12,316,173
14,432,317
10,013,656
12,165,590
28,946,802
54,048,579
174,469,945
(16,073,219)
Budgeted Amounts Final to Actual
Original Final Variance
$ 25,575,669
10,73 8,108
18,167,857
1,827,379
14,388,998
48,393,574
44,184,398
30,000
7,971,324
171,277,307
30,100,398
13,022,573
1,196,081
12,850,660
14,373,472
10,214,750
10,779,398
37,057,261
61,888,644
191,483,237
(20,205,930)
$ 25,575,669
10,73 8,108
18,167,857
1,904,123
14,391,312
101,904,967
43,907,605
30,000
11,463,679
228,083,320
30,851,935
14,053,891
1,279,935
13,588,266
15,695,646
10,582,261
12,233,320
82,014,175
90,103,926
270,403,355
(42,320,035)
$ 332,551
(778,546)
(172,426)
(400,871)
83,456
(61,535,347)
(4,732,075)
83,709
(2,567,045)
(69,686,594)
1,583,410
1,746,022
309,501
1,272,093
1,263,329
568,605
67,730
53,067,373
36,055,347
95,933,410
26,246,816
15,661,869 12,989,828 36,769,518 (21,107,649)
(411,350) (7,216,102) (5,550,517) 5,139,167
80,882,630 37,452,616 82,384,365
$ 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 accordance with
Governmental Accounting Standards Board Statement No. 41 for governments with significant budgetary
perspective differences resulting from not being able to present budgetary comparisons for the General
Fund and each major Special Revenue Fund.
The Code of Iowa requires the adoption of an annual budget by the City Council on or before March 31
of each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control (the level on which expenditures may not legally exceed
appropriations) is the function level for the City as a whole, rather than at the fund or fund type level.
The internal service fund or agency fund activity is not included in the adopted budget.
The City's budget is prepared on the cash basis of accounting with an adjustment for accrued payroll
following required public notice and hearings. After the initial annual budget is adopted, it may be
amended for specified purposes. Budget amendments must be prepared and adopted in the same manner
as the original budget. Management is not authorized to amend the budget or to make budgetary transfers
between functions without the approval of the City Council. Management may make budgeting transfers
between funds as long as the transfers are within the same function. The City has adopted a policy
relative to budgetary control and amendment which provides for control at the line -item level and review
of the current year's budget at the time the next year's budget is prepared. This usually results in
amending the appropriations of all functions to adjust to current conditions. Supplemental appropriations
are only provided when unanticipated revenues or budget surpluses become available. Appropriations as
adopted lapse at the end of the fiscal year.
The budget for the fiscal year ended June 30, 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 Expenditures/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
Statutorily required contribution $ 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
statutorily required contribution (2,460)
(2,403)
(2,235)
(2,229)
(2,196)
(2,151)
(2,164)
(2,022)
(2,022)
(1,573)
Contribution deficiency (excess) $ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
City'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%
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)
City's proportionate share of the net pension liability
City's covered payroll
City's proportionate share of the net pension liability
as a percentage of its covered payroll
Plan fiduciary net position as a percentage of the
total pension liability
4.6919% 4.8639% 4.7840% 4.9533% 4.9854% 5.0788%
$ 30,775 $ 28,960 $ 28,062 $ 30,971 $ 23,423 $ 18,410
$ 14,203 $ 14,118 $ 13,552 $ 13,423 $ 13,052 $ 12,968
216.68% 205.13% 207.07% 230.73% 179.46% 141.96%
79.94% 81.07% 80.60% 78.20% 83.04% 86.27%
*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
Statutorily required contribution
$ 3,632
$ 3,696
$ 3,626
$ 3,513
$ 3,727
$ 3,969
$ 3,906
$ 3,310
$ 3,177
$ 2,404
Contributions in relation to the
statutorily required contribution
(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 covered payroll
$ 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
covered payroll
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
Changes of benefit 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 mortality.
This resulted in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994
Group Annuity Mortality Table.
The 2014 valuation phased in the 1994 Group Annuity Mortality Table for post retirement mortality.
This resulted in a weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994
Group Annuity Mortality Table.
123
CITY OF DUBUQUE, IOWA
SCHEDULE OF CHANGES IN
TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
LAST THREE FISCAL YEARS
Service Cost
Interest Cost
Changes in assumptions
Changes in experience
Other Changes
Benefit payments
Net change in total OPEB Liability
Total OPEB liability beginning of year
Total OPEB liability end of year
Covered -employee payroll
Total OPEB liability as a percentage
of covered -employee payroll
2020
2019
2018
$ 288,187 $
296,597 $
277,469
165,496
172,576
172,219
(19,982)
85,951
138,371
(242,263)
-
-
(49,950)
2,582
58,589
(380,158)
(452,573)
(474,856)
(238,670)
105,133
171,792
6,121,366
6,016,233
5,844,441
$ 5,882,696 $
6,121,366 $
6,016,233
$ 34,543,167 $ 39,626,000 $ 39,782,000
17.03% 15.45% 15.12%
Notes to Schedule of Changes 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 City for
maintenance and improvement of City streets.
Section VIII Housing Fund — This fund is used to account for the operations of federal Section VIII
existing, voucher, and moderate rehabilitation projects.
Employee Benefits Fund — This fund is used to account for pension and related employee benefit
costs for those employees paid wages from the General Fund.
Special Assessments Fund — This fund is used to account for the financing of public improvements
that are deemed to benefit primarily the properties against which special assessments are levied and
to accumulate monies for the payment of principal and interest on the outstanding long-term debt
service.
Cable TV Fund — This fund is used to account for the monies and related costs as set forth in the
cable franchise agreement between the City of Dubuque and the cable franchisee.
Library Expendable Gifts Trust — This fund is used to account for contributions given to the
library to be spent for specific purposes.
IFA Housing Trust — This fund is used to account for funds received under the Iowa Finance
Authority State Housing Trust Fund Program.
Police Expendable Gifts Fund — This fund is used to account for contributions given to the police
department to be spent for specific purposes.
Veteran's Memorial - This fund is used to account for contributions given to the Veteran's
Memorial for specific purposes and for maintainance.
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
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Restricted cash and pooled cash investments
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Unearned revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax
Special assessments
Grants
Other
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Endowment corpus
Inventory
Prepaid items
Restricted:
Endowments
Library
Police
Veterans
Capital improvements
Franchise agreement
Special assessments
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
Revenue Funds
Road
Use Section VIII Employee Special
Tax Housing Benefits Assessments
$ 4,778,396 $ 381,745 $ - $
- - 100,588
- - 3,033,914
67,199 - -
- 407,620
969,042 3,724
302,382 -
435 11,980
- 308,903 - -
$ 6,050,255 $ 773,551 $ 3,134,502 $ 407,620
$ 319,704 $ 111,731 $ $
76,481 26,467
- 8,141
- 117,685
396,185 264,024 -
3,033,914 -
- 389,289
- 3,724 - -
- - 43,556 -
- 3,724 3,077,470 389,289
302,382 -
435 11,980
5,351,253 -
18,331
- 593,625 -
- - 57,032
- (99,802) - -
5,654,070 505,803 57,032 18,331
$ 6,050,255 $ 773,551 $ 3,134,502 $ 407,620
128
EXHIBIT A-1
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
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Restricted cash and pooled cash investments
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Unearned revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax
Special assessments
Grants
Other
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Endowment corpus
Inventory
Prepaid items
Restricted:
Endowments
Library
Police
Veterans
Capital improvements
Franchise agreement
Special assessments
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
Capital Projects
Funds Permanent Funds
Total
Ella Lyons
Library Nonmajor
Street Peony Trail
Gifts Governmental
Construction Trust
Trust Funds
$ 2,168,691 $ - $ - $ 12,584,785
100,588
3,033,914
26,045 - 229,339
- - - 407,620
6,978 212 58 23,693
- - - 1,553,547
1,052,044 - 3,356,261
- - 901,636
340 - 38,271
- 155,677 18,051 4,297,391
$ 3,254,098 $ 155,889 $ 18,109 $ 26,527,045
$ 418,269 $ - $ $ 1,941,541
- - 117,814
- - 8,141
- - 456,550
- - 117,685
418,269 2,641,731
3,033,914
- - 389,289
515,173 - 860,905
314,963 - 358,519
830,136 - 4,642,627
57,412 12,000 69,412
- - - 901,636
340 - 38,271
- 98,477 6,109 104,586
- - - 1,157,214
- - 7,774
152,925
8,563,640
618,857
- - 18,331
- - 1,235,968
- - 593,625
- - 57,032
2,005,353 - 5,823,218
- - (99,802)
2,005,693 155,889 18,109 19,242,687
$ 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
REVENUES
Taxes
Special assessments
Intergovernmental
Charges for services
Investment earnings
Contributions
Miscellaneous
Total Revenues
EXPENDITURES
Governmental activities
Current
Public safety
Public works
Culture and recreation
Community and economic development
General government
Debt service
Interest and fiscal charges
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
Special Revenue Funds
Road
Use Section VIII Employee Special
Tax Housing Benefits Assessments
$ - $ - $ 3,645,629 $ -
- - - 69,891
7,782,636 5,498,322 - -
211,083 - - -
- 8,257 - 21,506
- 650 - -
38,900 59,808 - 1,255
8,032,619 5,567,037 3,645,629 92,652
6,328,105 - -
- 5,707,258 - -
6,849 - 242 -
442,418 - - -
6,777,372 5,707,258 242 -
1,255,247 (140,221) 3,645,387 92,652
33,682 97,138 - -
(462,469) - (3,633,932) (109,439)
(428,787) 97,138 (3,633,932) (109,439)
826,460 (43,083) 11,455 (16,787)
4,827,610 548,886 45,577 35,118
$ 5,654,070 $ 505,803 $ 57,032 $ 18,331
132
Special Revenue Funds Capital Projects Funds
Library Police IFA
Expendable Expendable Veteran's Housing Airport General
Cable TV Gifts Trust Gifts Trust Memorial Trust Construction Construction
-
-
- - 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
EXHIBIT A-2
(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
REVENUES
Taxes
Special assessments
Intergovernmental
Charges for services
Investment earnings
Contributions
Miscellaneous
Total Revenues
EXPENDITURES
Governmental activities
Current
Public safety
Public works
Culture and recreation
Community and economic development
General government
Debt service
Interest and fiscal charges
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
Capital Projects Funds Permanent Funds
Ella Lyons
Sales Tax Street Peony Trail
Construction Construction Trust
Total
Library Nonmajor
Gifts Governmental
Trust Funds
$ 1,930,466 $
2,895,699 $ - $
- $ 8,471,794
-
- -
- 69,891
-
1,180,314 -
- 16,065,870
-
18,720 -
- 408,788
84,478
37,853 (2,470)
416 252,126
-
- -
- 16,149
2,637
73,574 -
158 1,391,937
2,017,581
4,206,160 (2,470)
574 26,676,555
- - 3,102
- - - - 6,328,105
- - - 1,760 140,929
- - - - 5,707,258
- - 577,117
10,980 - - - 722
1,617,936 3,413,817 - - 12,842,807
1,628,916 3,413,817 - 1,760 25,600,040
388,665 792,343 (2,470) (1,186) 1,076,515
102,132 85,852 -
- 3,653,188
(758,092) (674,769) -
- (5,704,617)
- 52,182 -
- 52,182
- - -
- 3,000
(655,960) (536,735) -
- (1,996,247)
(267,295) 255,608 (2,470) (1,186) (919,732)
5,292,825 1,750,085 158,359 19,295 20,162,419
$ 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
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2020
EXHIBIT B-1
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
Net pension liability
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
OPEB related deferred inflows
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Unrestricted
Total Net Position
150,348 220,659 - - 371,007
13,409 10,855 - - 24,264
163,757 231,514 - - 395,271
626,303 15,374,240 720,532 - 16,721,075
318,749 853,752 62,776 4 1,235,281
$ 945,052 $ 16,227,992 $ 783,308 $ 4 $ 17,956,356
136
CITY OF DUBUQUE, IOWA EXHIBIT 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)
Net Nonoperating Revenues
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
Total Other
Refuse
Transit
River
Enterprise
Collection
System
Salt
Project
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
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
Transfers to other funds
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
- 1,693,164
- 2,800 1,695,964
- 1,608,855
- - 1,608,855
- 613,900
- - 613,900
- 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)
Proceeds from sale of capital assets
16,500 -
Principal Paid
(5,222) (9,600)
Interest paid
(2,064)
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
(87,773) (332,730)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND POOLED
INVESTMENTS
(420,117)
16,500
(14,822)
(2,064)
(420,503)
424,922 3,059 - - 427,981
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 Total Other
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
Change in assets and liabilities
(Increase) Decrease in receivables
Decrease in inventories and prepaid items
Increase in accounts payable
Increase (Decrease) in accrued liabilities
(Decrease) in net pension liability
Decrease in deferred outflows
Increase in deferred inflows
Increase in total OPEB liability
Total Adjustments
317,135
814,208 27,639
- 1,158,982
(424,445)
2,146 -
- (422,299)
-
(2,563) -
- (2,563)
1,283
(19,572) -
- (18,289)
(6,253)
23,118 -
- 16,865
(59,460)
(83,492) -
- (142,952)
36,000
52,083 -
- 88,083
84,609
115,677 -
- 200,286
1,176
18,401 -
- 19,577
(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
THIS PAGE IS INTENTIONALLY LEFT BLANK
140
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units, on a
cost -reimbursement basis.
General Service Fund - This fund is used to account for engineering, street, and general services
supplied to other departments.
Garage Service Fund - This fund is used to account for maintenance and repair services for the
City's automotive equipment.
Stores/Printing Fund - This fund is used to account for printing, supplies, and other services
provided to other departments.
Health Insurance Reserve Fund - This fund is used to account for health insurance costs.
Workers' Compensation Reserve Fund - This fund is used to account for workers' compensation
costs.
141
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2020
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Prepaid items
Inventories
Total Current Assets
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Total Current Liabilities
NONCURRENT LIABILITIES
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
NET POSITION
Net investment in capital assets
Unrestricted
Total Net Position (Deficit)
General Garage Stores/
Service Service Printing
$ 165,283 $ 574,541 $ 14,264
- 51,319 14,484
165,283 625,860 28,748
- 356,590 -
- (263,134) -
- 93,456 -
- 93,456 -
165,283 719,316 28,748
206,807 115,834 -
38,333 8,558
32,543 -
70,876 8,558
872,559
488,728 -
872,559
488,728 -
872,559
559,604 8,558
152,351 85,332 -
93,456 -
(652,820) 96,758 20,190
$ (652,820) $ 190,214 $ 20,190
142
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
EXHIBIT C-1
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
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment earnings
Gain on disposal of assets
Net Nonoperating Revenues (Expenses)
CHANGE IN NET POSITION
NET POSITION (DEFICIT), BEGINNING
NET POSITION (DEFICIT), ENDING
General Garage Stores/
Service Service Printing
$ 1,606,347 $ 1,942,010 $ 583,270
- 55,543 -
1,606,347 1,997,553 583,270
1,501,747
941,530
-
1
30,810
6,821
-
54,093
-
-
824,259
559,042
-
16,604
-
-
40,868
-
1,501,748
1,908,164
565,863
104,599
89,389
17,407
2,679 -
2,679 -
104,599 92,068 17,407
(757,419) 98,146 2,783
$ (652,820) $ 190,214 $ 20,190
144
Health Workers'
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
EXHIBIT C-2
145
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2020
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
NET CASH (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
POOLED INVESTMENTS
CASH AND POOLED INVESTMENTS, BEGINNING
CASH AND POOLED INVESTMENTS, ENDING
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income
Adjustments to reconcile operating income to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) in receivables
(Increase) Decrease in inventories and prepaid items
Increase (Decrease) in accounts payable
(Decrease) in net pension liability
Decrease in deferred outflows
Increase in deferred inflows
Increase in accrued liabilities
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
General
Garage
Stores/
Service
Service
Printing
$ 1,606,347 $
1,942,010 $
583,270
(1)
(950,333)
(569,639)
(1,441,063)
(923,368)
-
-
55,543
-
165,283
123,852
13,631
-
2,679
-
-
2,679
-
165,283
126,531
13,631
-
448,010
633
$ 165,283 $
574,541 $
14,264
$ 104,599 $
89,389 $
17,407
-
40,868
-
-
15,173
(4,902)
-
(39,740)
1,126
(47,010)
(51,155)
-
34,407
25,783
-
73,287
38,914
-
-
4,620
-
60,684
34,463
(3,776)
$ 165,283 $
123,852 $
13,631
146
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 70,112
(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)
EXHIBIT C-3
147
THIS PAGE IS INTENTIONALLY LEFT BLANK
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 for
improvements at the greyhound racing facility.
Flexsteel Decomission Fund —This fund is used to account for the resources held for the
decomissioning of the prior Flexsteel site.
149
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES 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
Due to other agency
$
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
Total Liabilities
FLEXSTEEL DECOMISSION FUND
ASSETS
Cash and pooled cash investments
Notes receivable
Total Assets
LIABILITIES
Due to other agency
Total Liabilities
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments
Prepaids
Accounts receivable
Notes receivable
Accrued interest
Total Assets
LIABILITIES
Due to other agency
Total Liabilities
$ 1,015,549 $ 146,338 $ 107,013 $ 1,054,874
$ 1,015,549 $ 146,338 $ 107,013 $ 1,054,874
$ 965,839 $
1,700,000 _
$ 2,665,839 $
325,343 $ 1,291,182 $
1,700,000 _
325,343 $ 2,991,182 $
$ 2,665,839
$
325,343
$
2,991,182
$
-
$ 2,665,839
$
325,343
$
2,991,182
$
-
$ 2,725,992
$
659,100
$
1,463,291
$
1,921,801
12,054
7,552
12,054
7,552
50,729
57,633
50,729
57,633
1,700,000
-
1,700,000
-
2,820
3,351
2,820
3,351
$ 4,491,595
$
727,636
$
3,228,894
$
1,990,337
$ 4,491,595
$
727,636
$
3,228,894
$
1,990,337
$ 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 for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time. 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 investment 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 net position
$ 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 -type activities net position
$ 138,524,071
$ 143,861,132
$ 143,869,241
$ 143,564,707
$ 151,714,861
Primary government
Net investment in capital assets
Restricted
Unrestricted
Total primary government net positions
$ 464,442,998 $ 480,128,503 $ 480,545,219 $ 493,574,841 $ 496,660,393
24,631,718 27,137,902 29,503,055 26,817,157 29,844,073
(2,287,582) (6,211,392) (9,003,072) (18,744,481) (54,148,267)
G AQr'74'7 12A Q CM ncc n'11 @ CM MG 7M G CM AA7 c17 N A'P7 1 r A 100
154
Year
TABLE 1
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)
Expenses
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services
Public safety
Public works
Culture and recreation
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Fiscal -
2011 2012 2013 2014 2015
$ 23,759,068
18,978,423
1,072,347
10,911,733
12,890,841
9,052,704
3,294,951
79,960,067
7,899,011
6,523,993
2,811,321
4,775,834
180,086
2,828,891
2,947,958
671,647
28,638,741
$ 108,598,808
2,579,573
5,331,667
2,108,177
2,530,234
14,204,627
23,482,866
50,237,144
$ 26,326,367
22,917,747
913,954
12,749,558
22,030,950
6,133,983
3,294,912
94,367,471
9,718,669
7,410,710
2,750,767
3,152,055
22,787
3,173,075
3,629,750
661,395
30,519,208
$ 124,886,679
2,915,562
5,178,439
2,321,553
2,873,298
23,013,997
16,560,811
52,863,660
$ 28,292,481
21,607,536
716,970
13,647,178
17,388,720
6,248,483
4,049,640
91,951,008
9,375,748
6,817,772
3,347,304
3,586,405
22,770
3,468,859
3,492,095
346,066
30,457,019
$ 122,408,027
2,495,737
4,472,479
2,488,844
3,264,979
13,995,316
10,791,945
37,509,300
$ 27,578,517
21,306,882
1,055,398
13,696,331
14,591,257
9,610,084
3,684,993
91,523,462
11,481,103
8,812,340
3,431,096
3,732,492
33,579
3,750,366
3,847,320
56,468
35,144,764
$ 126,668,226
2,624,455
5,829,293
2,321,265
3,921,256
12,784,907
12,162,649
39,643,825
6,643,974
7,827,281
8,924,785
10,025,673
10,582,662
5,638,277
6,037,073
6,922,582
7,248,790
7,463,430
2,993,539
3,180,134
3,192,256
3,224,504
3,490,040
2,750,610
2,908,989
2,883,865
2,920,148
3,036,214
3,082,197
193,236
773,258
2,773,933
6,536,527
31,385,551
$ 81,622,695
3,257,960
3,346,795
3,700,922
3,783,493
278,835
307,314
275,907
397,545
665,942
395,000
45,600
232,271
1,579,493
2,264,695
1,717,208
1,866,535
5,323,486
1,240,583
2,920,942
10,020,715
31,059,193
29,477,875
32,079,694
40,872,905
$ 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
11,614,347
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
Net (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 activities:
General Revenues
Property taxes
$ 28,249,114
$ 30,816,614 $
32,668,554
$ 33,264,283 $
36,277,719
Local 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
Unrestricted investment earnings
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) $ (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
$ 64,752,552
$ 64,696,461
$ 65,663,038
$ 65,189,575
$ 22,910,036 $ 12,060,629 $ 9,447,711 $ 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 -
2011
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
Year
TABLE 3
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
Special assessments
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
454,117
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
11,218,019
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
General government
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
Capital projects
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) of revenues over
(under) expenditures
2,542,937
(842,062)
(6,121,213)
(10,218,904)
(3,726,735)
Other Financing Sources (Uses)
Issuance of bonds
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
Year
TABLE 4
2016 2017 2018 2019 2020
$ 51,580,084 $
55,949,111
$ 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
1,440,405
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
113,356,370
110,144,389
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
13,037,048
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
115,367,913
109,671,988
107,019,400
111,229,453
(14,836,049)
(9,102,177)
(2,190,994)
6,336,970
(1,085,064)
3,933,882
230,000
110,000
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%
11.01%
163
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 5
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
68.19
11.02586
2013
2015
2,522,048
3,686,202
8,729
2,513,319
3,686,202
68.18
11.02588
2014
2016
2,508,933
3,723,003
8,631
2,500,302
3,723,003
67.16
11.02590
2015
2017
2,652,700
3,914,425
8,086
2,644,614
3,914,425
67.56
11.16739
2016
2018
2,686,813
3,931,498
7,783
2,679,030
3,931,498
68.14
10.89220
2017
2019
2,765,470
4,141,732
7,921
2,757,549
4,141,732
66.58
10.58844
2018
2020
2,825,245
4,185,444
7,640
2,825,245
4,185,444
67.50
10.33144
Source: Dubuque County Assessor's and Auditor'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
Levy
Year
Fiscal
Year
Dubuque
City
Dubuque
School
District
Board of
Education and
Independents
Area 1
Voc. Tech
Dubuque
County
Total
Ratio of
Dubuque
City 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
34.32049
31.42
2012
2014
11.02586
14.60281
0.75274
0.90455
6.43124
33.71720
32.70
2013
2015
11.02588
13.99630
0.66355
0.90807
6.43124
33.02504
33.39
2014
2016
11.02590
14.05629
0.63899
0.91036
6.38779
33.01933
33.39
2015
2017
11.16739
14.97697
0.63146
0.93757
6.29673
34.01012
32.84
2016
2018
10.89220
14.95665
0.62780
1.09993
6.34143
33.91801
32.17
2017
2019
10.58844
14.59791
0.65204
1.09993
5.97760
32.91592
32.11
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
2011
$ 8.10000
$ 0.54469
$ 0.20531
$ 1.12441
$ 0.05300
$ 10.02741
2010
2012
8.10000
0.35273
0.19508
1.75052
0.05278
10.45111
2011
2013
8.10000
0.49516
0.13965
2.02267
0.02729
10.78477
2012
2014
8.10000
0.38382
0.16288
2.33093
0.04823
11.02586
2013
2015
8.10000
0.48268
0.16595
2.23209
0.04516
11.02588
2014
2016
8.10000
0.48461
0.16428
2.16440
0.11261
11.02590
2015
2017
8.10000
0.49739
0.14963
2.30637
0.11400
11.16739
2016
2018
8.10000
0.66319
0.15561
1.89350
0.07990
10.89220
2017
2019
8.10000
0.62877
0.13933
1.62026
0.10008
10.58844
2018
2020
8.10000
0.61307
0.13974
1.38492
0.09371
10.33144
Source: Dubuque County Auditor's Office.
165
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2020 2011
Taxable
Taxpayer
Value
Rank
Peninsula Gaming Company LLC
$ 63,779
1
Kennedy Mall Inc.
38,960
2
GRDT Investments LLC (Queck)
31,301
3
ITC Midwest LLC
28,451
4
Progressive Proccessing LLC
(Hormel)
25,380
5
Walter Development LLC
25,166
6
MAR Holdings LLC (Medical Assoc.)
21,343
7
Nordstrom, Inc.
14,800
8
Flexsteel Industries, Inc.
14,792
9
Platinum Holdings LLC
13,500
10
Lexington Dubuque LLC
Otto A LLC
Asbury Dubuque LLC
Minglewood Limiited Partnership
$ 277,472
Source: Dubuque County Auditor's Office
Percentage of
Total City
Taxable
Taxable
Value
Value
Rank
2.26 %
$ 56,784
1
1.38
31,133
2
1.11
19,157
3
1.01
0.90
0.89
0.76
16,884
5
0.52
14,440
6
0.52
0.48
11,179
7
9,844
10
17,500
4
9,925
9
9,948
8
9.83 %
$ 196,794
TABLE 7
Percentage of
Total City
Tnvnhla
1.44
0.89
0.78
0.67
0.52
0.46
0.81
0.46
0.46
9.12 %
166
CITY OF DUBUQUE, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 8
Total
Percent of
Total Tax
Ratio of
Tax
Current
Current
Delinquent
Total Tax
Collections
Outstanding
Delinquent
Fiscal
Levy
Levy
Tax
Taxes
Tax
Collections
to Total
Delinquent
Taxes to Total
Year
Year
(1) Collections
Collected
Collections
(2)
Tax Levy
Taxes
Tax Levy
2011
2010
$ 19,906 $
19,793
99.4 %
$ 13
$ 19,806
99.5 %
$ 276
1.39 %
2012
2011
21,340
21,339
100.0
1
21,340
99.9
185
0.87
2013
2012
22,789
22,752
99.8
7
22,759
99.9
182
0.80
2014
2013
23,993
23,915
99.7
8
23,923
99.7
211
0.88
2015
2014
24,866
24,715
99.4
7
24,722
99.4
362
1.46
2016
2015
24,944
24,889
100.0
84
24,973
100.0
288
1.15
2017
2016
26,435
26,318
99.6
2
26,320
99.6
354
1.34
2018
2017
25,924
26,026
100
1
26,027
100.4
199
0.77
2019
2018
26,556
26,442
99.6
4
26,446
99.6
202
0.76
2020
2019
26,360
26,106
99.0
1
26,107
99.0
1,096
4.16
(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 %
$ 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
116,965,647
32,706,267
2,152,331
252,847,074
*
4,368
169
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
TABLE 10
Percentage of
Percentage of
General
Taxable
Taxable
Assessed
Assessed
Fiscal
Obligation
Value of
Value of
Value of
Value of
Per
Year
Bonds
Property
Property
Property
Property
Capita
2011
$ 57,816
$ 2,159,622
2.68 %
$ 3,349,823
1.73 %
$ 1,003
2012
88,196
2,243,474
3.93
3,406,186
2.59
1,530
2013
91,438
2,337,129
3.91
3,476,638
2.63
1,586
2014
85,308
2,398,151
3.56
3,503,774
2.43
1,480
2015
105,483
2,522,048
4.18
3,686,202
2.86
1,830
2016
105,676
2,508,933
4.21
3,723,003
2.84
1,808
2017
98,288
2,652,700
3.71
3,914,425
2.51
1,672
2018
90,813
2,686,813
3.38
3,931,498
2.31
1,558
2019
86,164
2,765,470
3.12
4,141,732
2.08
1,487
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
AS OF JUNE 30, 2020
TABLE 11
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
Total Overlapping 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%
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
Debt limit - 5% of total actual valuation
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease)
Legal debt margin
$ 4,785,964,957
$ 239,298,248
(109,020,970)
$ 130,277,278
173
CITY OF DUBUQUE, IOWA
REVENUE DEBT COVERAGE
LAST TEN FISCAL YEARS
( IN THOUSANDS OF DOLLARS)
TABLE 13
Gross
Operating
Net Revenue
Current Fiscal Year's
Fiscal Revenues
Expenses
Available For
Debt Service Requirements
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
211
496
7.42
2017 8,589
4,678
3,911
473
305
778
5.03
2018 8,962
4,989
3,973
489
288
777
5.11
2019 9,160
5,726
3,434
505
345
850
4.04
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
2,112
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
711
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
LAST TEN FISCAL YEARS
Water
Fiscal Year Revenue
TABLE 14
Sewer Gallons
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
LAST TEN FISCAL YEARS
TABLE 15
Fiscal Year Residential
Commercial
Industrial
Government
Total
2011 20,338
1,904
79
51
22,372
2012 20,532
1,902
79
52
22,565
2013 20,753
1,921
80
53
22,807
2014 20,887
1,945
81
68
22,981
2015 20,969
1,968
83
76
23,096
2016 21,157
1,972
84
104
23,317
2017 21,522
2,061
83
114
23,780
2018 20,498
2,019
83
115
22,715
2019 20,523
2,148
80
147
22,898
2020 21,886
1,941
69
138
24,034
176
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2020
Customer
Rousselot Inc #155296
Prairie Farms Dairy Inc
Hormel Foods Corporation*
Hormel Foods Corporation*
Alpine Park Community
Finley Hospital
Stonehill Nursing Home
Yes Companies Exp Fred, LLC
APC, Inc.
Georgia Pacific
IADU Table Mound MHP LLC
Grand Harbor Resor & Waterpark
Ronsan Enterprises Inc/Days Inn
Total Receipts
TABLE 16
Percentage of
Percentage of
Water
Total Water
Sewer
Total Sewer
Receipts
Rank
Receipts
Receipts
Rank
Receipts
$ 390,478
1
3.50 %
218,443
2
1.96
163,328
3
1.46 $
368,486
1
2.97 %
157,032
4
1.41
353,173
2
2.85
47,996
5
0.43
96,599
3
0.78
47,717
6
0.43
73,714
6
0.59
45,411
7
0.41
83,082
4
0.67
41,322
8
0.37
80,595
5
0.65
40,960
9
0.37
38,867
10
0.35
61,002
7
0.49
60,801
8
0.49
52,534
9
0.42
42,670
10
0.34
$ 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
FISCAL YEAR ENDING JUNE 30, 2020
Estimated
Sales Tax
Increment
Fiscal
Revenue
Year
Receipts*
2015 * $
2,037,489
2016 *
2,532,846
2017 *
3,945,134
2018 *
3,654,915
2019 *
4,207,297
2020 *
4,709,559
2021
5,574,673
2022
6,380,938
2023
6,866,198
2024
6,956,351
2025
6,957,401
2026
6,952,046
2027
6,952,532
2028
6,947,494
2029
6,723,750
2030
6,250,000
2031
4,467,912
2032
2,217,912
2033
2,250,000
* Actual receipts.
Senior Lien
Series 2015A
Net Debt Service
(1)
(762,650)
(762,650)
(762,650)
(762,650)
(762,650)
(2,767,650)
(2,771,000)
(2,768,969)
(2,771,031)
(2,768,719)
(2,768,394)
(2,767,300)
(2,768,800)
(2,766,400)
Remaining
Revenues After
Senior Lien
Debt Service
2,037,489
2,532,846
3,945,134
2,892,265
3,444,647
3,946,909
4,812,023
5,618,288
4,098,548
4,185,351
4,188,432
4,181,015
4,183,813
4,179,100
3,956,450
3,481,200
1,701,512
2,217,912
2,250,000
(1) Net of capitalized interest and the debt service reserve fund.
(2) Net of capitalized interest.
Second Lien
Series 2014
Net Debt
Service
(2)
(323,100)
(323,100)
(323,100)
(323,100)
(323,100)
(323,100)
(43 8,100)
(1,393,500)
(1,400,500)
(1,344,250)
(1,363,000)
(1,365,000)
(1,365,000)
TABLE 17
Remaining
Revenues
After Second
Lien Debt
Service
2,037,489
2,532,846
3,622,034
2,569,165
3,121,547
3,623,809
4,488,923
5,295,188
3,660,448
2,791,851
2,787,932
2,836,765
2,820,813
2,814,100
2,591,450
3,481,200
1,701,512
2,217,912
2,250,000
178
CITY OF DUBUQUE, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
TABLE 18
Per Capita
Public
Personal
Median
School
Unemployment
Personal
Income
Age
Enrollment
Rate
Year
Population
Income
(1)
(2)
(3)
(4)
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.
179
THIS PAGE IS INTENTIONALLY LEFT BLANK
180
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
1.36
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
Source: Greater Dubuque Development Corp.
20.86 %
(1) Based on the percentage of total employment for Dubuque area from the U.S. Department of Labor, Bureau of
Labor Statistics.
(2) Located just outside City Limits.
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
113.34
114.25
115.00
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
116.00
117.00
118.00
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
14.88
15.00
15.00
15.00
14.00
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
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
Inspections conducted
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
11,180
10,535
10,311
Sources: Various City 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
Street lights (1)
1,931
2,081
2,084
2,110
Health and social services
Hospital
2
2
2
2
Number of patient beds
389
389
389
389
Cultural and recreation
Library
1
1
1
1
Golf
1
1
1
1
Parks
48
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
23,119
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
LAST TEN CALENDAR YEARS
Taxable
Number of
Year
Retail Sales
Businesses
2011
$ 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
TABLE 23
188
Compliance Section
June 30, 2020
City of Dubuque, Iowa
189
THIS PAGE IS INTENTIONALLY LEFT BLANK
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 Government Auditing Standards
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of Dubuque, Iowa, (City) as of and for
the year ended June 30, 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 Government Auditing
Standards, and accordingly, this report does not extend to those financial statements.
The financial statements of Dubuque Convention and Visitors Bureau, a discretely presented component
unit, were not audited in accordance with Government Auditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) 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 Government Auditing Standards. However, we noted certain immaterial instances of
non-compliance which are described in Part IV of the accompanying schedule of findings and questioned
costs.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 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 Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Dubuque, Iowa
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, Iowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque, Iowa's (City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of the City's major federal programs for the year ended June 30, 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 Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the 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.
Dubuque, Iowa
January 15, 2021
194
City of Dubuque, Iowa
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 Agriculture
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 Housing 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
Iowa 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 Control in
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
Iowa Department of Cultural Affairs
Historic Preservation Fund Grants -In -Aid
15.904
2019-03
6,589
U.S. Department of Justice
Direct program
COVID-19 - Coronavirus Emergency Supplemental
Funding Program
16.034
1,742
Pass -through program from
Iowa Department of Justice
Violence Against Women Formula Grants
16.588
VW-19-14-CJ
1,216
Violence Against Women Formula Grants
16.588
VW-20-41-LE
1,470
2,686
195
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U.S. Department of Justice (continued)
Direct program
Bulletproof Vest Partnership Program
Pass -through program from
Iowa Department of Justice
Public Safety Partnership and Community
Policing Grants
Public Safety Partnership and Community
Policing Grants
Direct program
Edward Byrne Memorial Justice
Assistance Grant Program
Edward Byrne Memorial Justice
Assistance Grant Program
Edward Byrne Memorial Justice
Assistance Grant Program
Pass -through program from
Dubuque County Sheriff's Office
Edward Byrne Memorial Justice
Assistance Grant Program
Total U.S. Department of Justice
U.S. Department of Transportation
Direct program
Airport Improvement Program
COVID-19 - Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Highway Planning and Construction Cluster
Pass -through program from
Iowa Department of Transportation
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Total Highway Planning and Construction Cluster
Federal Transit Cluster
Direct program
Federal Transit - Formula Grants
COVID-19 - Federal Transit - Formula Grants
Federal Transit - Formula Grants
Buses and Bus Facilities Formula, Competitive, and
Low or No Emissions Programs
Total Federal Transit Cluster
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2020
Pass -through
Federal Entity
CFDA Identifying
Number Number
16.607
Amounts Passed -
Through to
Expenditures Subrecipients
$ 4,428 $
16.710 18-CAMP-05 5,315
16.710 18-COPS-HEROIN-02 2,618
7,933
16.738 7,185
16.738 12,168
16.738 19,548
16.738 17-JAG-299019 31,658
70,559
87,348
20.106 294,122
20.106 274,162
20.106 581,546
20.106 338,794
1,488,624
20.205
EDP-2100(695)-7Y-31
547,006
20.205
HDP-2100 (664)--71-31
7,916
20.205
HDP-2100(679)-71-31
307,591
20.205
SB-IA-2100(675)--7T-31
17,000
20.205
STP-U-2100(693)-70-31
282,070
20.205
STP-U-2100(634)-70-31
11,469
20.205
TAP-U-2100(683)--81-31
15,668
1,188,720
20.507
80,130
20.507
1,175,154
20.507
767,200
2,022,484
20.526
1,632,894
3,655,378
196
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U.S. Department of Transportation (continued)
Pass -through program from
Iowa Department of Transportation
Formula Grants for Rural Areas
and Tribal Transit Program
Transit Services Program Cluster
Enhanced Mobility of Seniors and
Individuals with Disabilities
Highway Safety Cluster
Iowa Department of Public Safety
State and Community Highway Safety
State and Community Highway Safety
Total Highway Safety Cluster
Total U.S. Department of Transportation
Environmental Protection Agency
Direct program
Brownsfields Assessment and Cleanup
Cooperative Agreements
Brownsfields Assessment and Cleanup
Cooperative Agreements
Brownsfields Assessment and Cleanup
Cooperative Agreements
Brownsfields Assessment and Cleanup
Cooperative Agreements
Total Environmental Protection Agency
Corporation for National and Community Service
Pass -through program from
Iowa Commission on Volunteers
AmeriCorps
AmeriCorps
AmeriCorps
AmeriCorps
Total Corporation for National and Community Service
Total
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2020
Pass -through
Federal Entity Amounts Passed-
CFDA Identifying Through to
Number Number Expenditures Subrecipients
20.509
20.513
ICB-CY19 $ 6,792 $
2020-001-00-SFY20 60,614
20.600 PAP 19-402-MOOP 12,435
20.600 PAP 20-402-MOOP 8,184
20,619
6,420,747
66.818
48,878
66.818
99,773
66.818
61,289
66.818
500
210,440
94.006
19-AC-10
119,916
94.006
19-AF-05
35,297
94.006
18-AC-10
45,459
94.006
18-FP-02
6,725
207,397 -
$ 24,466,566 $ 115,880
197
City of Dubuque, Iowa
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, Iowa, (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
Part I: Summary of the Independent Auditor's Results:
FINANCIAL STATEMENTS
Type of auditor's report issued
Internal control over financial reporting:
Material weaknesses identified
Significant deficiencies identified not
considered to be material weaknesses
Noncompliance material to financial statements noted?
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified
Significant deficiencies identified not
considered to be material weaknesses
Type of auditor's report issued on compliance for major programs:
Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516:
Identification of major programs:
Name of Federal Program
CDBG - Entitlement Grants Cluster
Community Development Block Grants/Entitlement Grants
CDBG - Disaster Recovery Grants - Pub. L. No. 113-2 Cluster
National Resiliency Disaster Recovery Competition
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
Airport Improvement Program
Dollar threshold used to distinguish between type A
and type B programs:
Auditee qualified as low -risk auditee?
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2020
Unmodified
Yes
None reported
No
No
None reported
Unmodified
No
CFDA Number
14.218
14.272
14.871
20.106
$750,000
No
199
City of Dubuque, Iowa
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, Iowa
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
2020-IA-D
2020-IA-E
Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
Business Transactions — Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and Transaction
Business Connection Description
Riley Fairchild, City employee, spouse is Services
owner of Fairchild Business Coaching
Mike Kerth, City employee, spouse is Supplies
co-owner of Steve's Ace Hardware
Gina Hodgson, City employee, Crop Cover
spouse is Bob Hodgson
Paula Cook, City employee, spouse is Services
owner of JASC Property LLC.
Douglas Merke, City employee, Services
spouse is owner of River Valley
Veterinary Services
John Hefel, City employee, Services
spouse is owner of A Frame of Mind
Framing & Gallery
Amount
$ 18,950
14,100
1,635
483
450
318
In accordance with Chapter 362.5(3)(j) of the Code of Iowa, 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 Iowa.
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 Iowa.
201
City of Dubuque, Iowa
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 Iowa and the City's investment policy were
noted.
2020-IA-1 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 Iowa Department of Management on or before December 1. However, we noted
instances in which TIF debt balances did not reconcile with City records.
Recommendation — The City should implement additional preparation and review procedures
relating to the Annual Urban Renewal Report.
Response — We agree with the auditor's comments. The 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 45513.310 of the Code of Iowa 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 Iowa
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 Iowa, 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 Iowa.
202
City of Dubuque, Iowa
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
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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
$3,720,000* Water Revenue Refunding Bonds, Series 2021C (the "Bonds") dated August 18,
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:
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.
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 or 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.
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 fiscal 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 Exhibit A.
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.
Content of Annual Financial Information. The Issuer's Annual Financial Information
filing shall contain or incorporate by reference the following:
d. 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 thereof. 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.
e. 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
caption "Rates and Charges," "Number of Water Customers," "Larger Water Customers",
"Water Sales," "Historical Cash Flow & Anticipated Debt Coverage," "Water System
Revenue Debt," "Debt Limit," "Direct Debt," & "Other Debt".
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.
Reporting of Significant Events.
f. 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:
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.
g. 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.
h. 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.
Termination of Reporting Obligation. 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.
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.
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:
i. 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;
j. 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
k. 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.
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.
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.
Duties, Immunities and Liabilities of Dissemination Agent. 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.
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.
Rescission Rights. 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.
ATTEST:
Lm
City Clerk
CITY OF DUBUQUE, STATE OF IOWA
Im
Mayor
EXHIBIT A
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL FINANCIAL
INFORMATION
Name of Issuer: City of Dubuque, Iowa.
Name of Bond Issue: $3,720,000* Water Revenue Refunding Bonds, Series 2021C
Dated Date of Issue: August 18, 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:
APPENDIX E: EXCERPTS OF THE MASTER RESOLUTION
AND THE SERIES RESOLUTION
This Appendix includes a summary of certain definitions and provisions of the Master Resolution
(referred to herein as the "Master Resolution') and the Series Resolution (the "Series
Resolution') authorizing the issuance of the Series 2021 C Bonds. The summary does not purport
to be comprehensive or definitive and is qualified in its entirety by reference to the complete
resolutions. For descriptions of the provisions of the Series Resolution relating to the
authorization of the Bonds and their redemption, please see the inside cover pages of this Official
Statement, and "DESCRIPTION OF THE BONDS" herein.
EXCERPTS FROM THE MASTER RESOLUTION
DEFINITIONS
Definitions. The following terms shall have the following meanings in this Resolution unless the text expressly or by
necessary implication requires otherwise:
"Authorized Denominations" shall mean $5,000 or any integral multiple thereof.
"Beneficial Owner" shall mean the person in whose name such Bond is recorded as the beneficial owner of a Bond by a
Participant on the records of such Participant or such person's subrogee.
"Bond Principal and Interest Fund" means the fund by that name established in Section 6.5 of this Resolution.
"Bond Register" means the books maintained by the Registrar for the registration, transfer and exchange of Bonds.
"Bondholder" means the registered owner of one or more Bonds.
"Bonds" means any water revenue bonds, notes or other obligations authorized by and authenticated and delivered
pursuant to this Resolution and any Series Resolution, including the Series 2008D Bonds, any other Senior Bonds, and
any Subordinate Bonds.
"City Clerk" means the individual presently serving as the City Clerk of the Issuer, and any successor who may
hereafter serve as such officer or be charged with substantially the same duties and responsibilities.
"Code" means the Internal Revenue Code of 1986, as amended, and the applicable regulations of the Treasury
Department proposed or promulgated thereunder.
"Continuing Disclosure Certificate" shall mean that certain Continuing Disclosure Certificate executed by the Issuer
and dated the date of issuance and delivery of the Series 2008D Bonds, as originally executed and as it may be amended
from time to time in accordance with the terms thereof.
"Costs of Issuance" means issuance costs with respect to any series of Bonds, including but not limited to the following:
underwriters' spread (whether realized directly or derived through purchase of such Bonds at a discount below the price
at which they are expected to be sold to the public); Credit Facility fees; trustee's fees; counsel fees (including bond
counsel, underwriter's counsel, and any other specialized counsel fees incurred in connection with the borrowing); fees of
any Financial Advisor to the Issuer incurred in connection with the issuance of the Bonds; Rating Agency fees; escrow
agent and paying agent fees; accountant fees and other expenses related to issuance of the Bonds; printing costs (for the
Bonds and of the preliminary and final official statement relating to the Bonds); and other fees and expenses of the Issuer
incurred in connection with the issuance of the Bonds.
"Credit Facility" means any letter of credit, insurance policy, guaranty, surety bond, standby bond purchase agreement,
line of credit, revolving credit agreement, or similar obligation, arrangement, or instrument issued by a bank, insurance
company, or other financial institution which is used by the Issuer to perform one or more of the following tasks: (i)
enhancing the Issuer's credit by assuring owners of any of the Bonds that Principal of and interest on such Bonds will be
paid promptly when due; (ii) providing liquidity for the owners of Bonds through undertaking to cause Bonds to be
bought from the owners thereof when submitted pursuant to an arrangement prescribed by the Series Resolution relating
to such Bonds; or (iii) remarketing any Bonds so submitted to the Issuer or Credit Facility Provider for purchase (whether
or not the same Credit Facility Provider is remarketing the Bonds).
"Credit Facility Agreement" means an agreement between the Issuer and a Credit Facility Provider pursuant to which
the Credit Facility Provider issues a Credit Facility and may include the promissory note or other instrument evidencing
the Issuer's obligations to a Credit Facility Provider pursuant to a Credit Facility Agreement.
"Credit Facility Provider" means any issuer of a Credit Facility then in effect for all or part of the Bonds. Whenever in
a Series Resolution the consent of the Credit Facility Provider is required, such consent shall only be required from the
Credit Facility Provider whose Credit Facility is issued with respect to the series of Bonds for which the consent is
required.
"Debt Service Requirement" shall mean the total Principal and interest coming due on Senior Bonds, or all Bonds, as
applicable, whether at maturity, on any Interest Payment Date, or upon mandatory sinking fund redemption in any
specified period; provided, however, that the Debt Service Requirement with respect to any Bonds shall mean the net
amount of principal and interest coming due on such Bonds after taking into account any so-called "subsidy" (i.e., the
amount of anticipated investment earnings which will accrue on any reserve account relating to the Bonds and which will
reduce the debt service payments of the Issuer with respect to such Bonds). In addition:
(a) With respect to any Bonds secured by a Credit Facility, Debt Service Requirement shall include (i) any
upfront or periodic commission or commitment fee obligations with respect to such Credit Facility, (ii) the
outstanding amount of any Reimbursement Obligation owed to the applicable Credit Facility Provider and
interest thereon, and (iii) any remarketing agent fees.
(b) The Principal of and interest on Bonds shall be excluded from the determination of Debt Service
Requirement to the extent that (1) the same were or are expected to be paid with amounts on deposit on the date
of calculation (or Bond proceeds to be deposited on the date of issuance of proposed Bonds) in the Project Fund,
the Debt Service Reserve Fund or a similar fund for Subordinate Bonds or (2) cash or non -callable Government
Obligations are on deposit in an irrevocable escrow or trust account in accordance with Section 9.1 hereof (or a
similar escrow or trust account for Subordinate Bonds) and such amounts (including, where appropriate, the
earnings or other increment to accrue thereon) are required to be applied to pay Principal or interest and are
sufficient to pay such Principal or interest.
"Debt Service Reserve Fund" means the fund by that name established in Section 6.6 of this Resolution.
"Debt Service Reserve Requirement" means the amount determined to be a reasonable reserve for the payment of
Principal of and interest on Senior Bonds (other than Senior SRF Bonds), which amount shall be the least of (a) 10% of
the stated Principal amount of the Senior Bonds (other than Senior SRF Bonds), (b) the maximum annual Principal and
interest requirements on the Senior Bonds (other than Senior SRF Bonds) (determined as of the issue date of each series
of such Senior Bonds), or (c) 125% of the average annual Principal and interest requirements on the Senior Bonds (other
than Senior SRF Bonds) (determined as of the issue date of each series of such Senior Bonds). If the aggregate initial
offering price of a series of Bonds to the public is less than 98% or more than 102% of par, such offering price shall be
used in lieu of the stated Principal amount. Notwithstanding the foregoing, the Debt Service Reserve Requirement, if
any, in connection with any Senior SRF Bonds or any Subordinate Bonds shall be as provided in the Series Resolution
authorizing the issuance of such Senior SRF Bonds or such Subordinate Bonds.
"Depository Bonds" shall mean the Bonds as issued in the form of one global certificate for each maturity, registered in
the Bond Register maintained by the Registrar in the name of DTC or its nominee.
"DTC" shall mean The Depository Trust Company, New York, New York, a limited purpose trust company, or any
successor book -entry securities depository appointed for the Bonds.
"Financial Advisor" means a financial advisory firm appointed by the Governing Body for the purpose of assisting the
Issuer with the structuring and offering of Bonds, SRF Bonds, Subordinate Bonds or other obligations.
"Fiscal Year" shall mean the twelve-month period beginning on July 1 of each year and ending on the last day of June of
the following year, or any other consecutive twelve-month period adopted by the Governing Body or by law as the
official accounting period of the System. Requirements of a Fiscal Year as expressed in this Resolution shall exclude
any payment of principal or interest falling due on the first day of the Fiscal Year and include any payment of principal
or interest falling due on the first day of the succeeding Fiscal Year.
"Governing Body" shall mean the City Council of the Issuer, or its successor in function with respect to the operation
and control of the System.
"Government Obligations" means (a) direct obligations of the United States of America for the full and timely payment
of which the full faith and credit of the United States of America is pledged or (b) obligations issued by an agency
controlled or supervised by and acting as an instrumentality of the United States of America, the full and timely payment
of the principal of and the interest on which is fully and unconditionally guaranteed as a full faith and credit obligation of
the United States of America (including any securities described in (a) or (b) issued or held in book -entry form on the
books of the Department of the Treasury of the United States of America), which obligations, in either case, (i) are not
subject to redemption or prepayment prior to maturity except at the option of the holder of such obligations and (ii) may
include U.S. Treasury Trust Receipts.
"Gross Revenues" shall mean all rents, profits, fees, charges and income derived directly from the operation of the
System, including Investment Earnings.
"Independent Auditor" shall mean an independent firm of certified public accountants or the Auditor of the State of
Iowa.
"Interest Payment Date" means each date on which interest is to become due on any Bonds, as established in the Series
Resolution for such Bonds, and with respect to the Series 2008D Bonds, shall be as specified in Section 2.2 hereof.
"Investment Earnings" means all interest received on and profits derived from investments of moneys in all funds and
accounts of the Issuer established hereunder, other than investments derived from or with respect to (i) all funds and
accounts established in connection with SRF Bonds and (ii) those funds or accounts established within or as part of the
Project Fund or the Rebate Fund.
"Issuer" shall mean the City of Dubuque, Iowa.
"Maximum Annual Debt Service Requirement" means the maximum amount of Debt Service Requirements as
computed for the then current or any future Fiscal Year.
"Net Revenues" shall mean Gross Revenues of the System after provision for payment of all Operation and
Maintenance Expenses.
"Operation and Maintenance Expenses" shall mean the reasonable necessary current expenses paid or accrued in
operating and maintaining the System as determined in accordance with generally accepted accounting principles,
including but not limited to (a) costs, including a reserve for bad debts of collecting Gross Revenues and making refunds;
(b) engineering, audit reports, legal and administrative expenses; (c) salaries, wages, benefits and other compensation; (d)
costs of routine repairs, replacements and renewals; (e) costs of utility services; (f) general administrative overhead,
marketing or advertising; (g) losses from the sale, abandonment, reclassification or other disposition of any property of
the System; (h) material and supplies used in the ordinary course of business; (i) contractual and professional services; 0)
costs of insurance and fidelity bonds; (k) costs of carrying out provisions of the Resolution; (1) expenditures which do not
exceed the standards for capitalization under the Issuer's accounting basis; and (m) all other routine costs and expenses.
The term "Operation and Maintenance Expense" shall not include any allowance for depreciation or amortization, any
debt service or the costs associated with early extinguishment of debt, nor any other accounting charges which are not
payable from Gross Revenues.
"Operation and Maintenance Fund" means the fund by that name established in Section 6.4 of this Resolution.
"Original Purchaser" shall mean the purchaser of the Series 2008D Bonds from the Issuer at the time of their original
issuance.
"Outstanding" shall mean, as of a particular date, all such Bonds theretofore and thereupon delivered except: (a) any
such Bond cancelled by or on behalf of the Issuer on or before said date; (b) any such Bond defeased pursuant to Section
9.1 of this Resolution or of the Series Resolution authorizing its issuance, or otherwise defeased as permitted by
applicable law; and (c) any such Bond in lieu of or in substitution for which another bond shall have been delivered
pursuant to the Series Resolution authorizing the issuance of such Bond.
"Outstanding SRF Loan" shall mean the $1,037,000 Water Revenue Capital Loan Note, Series 2007, dated
October 18, 2007 and authorized for issuance under the Prior Resolution. The Outstanding SRF Loan shall be
deemed to be a Senior SRF Bond under this Resolution.
"Participants" shall mean those broker -dealers, banks and other financial institutions for which DTC holds Bonds as
securities depository.
"Paying Agent" shall mean Wells Fargo Bank, National Association, or such successor as may be approved by the
Issuer as provided herein and who shall carry out the duties prescribed herein as the Issuer's agent to provide for the
payment of principal of and interest on the Bonds as the same shall become due.
"Permitted Investments" shall mean those obligations in which the Issuer is permitted to invest moneys of the Issuer
under applicable law and the Issuer's then -prevailing Investment Policy, as amended from time to time.
"Principal" means the principal amount of such Bond.
"Principal Maturity Date" means each date on which Principal is to become due on any Bonds, by maturity or
mandatory sinking fund redemption, as established in the Series Resolution for such Bonds.
"Prior Resolution" means Resolution No. 490-07 of the City Council approved on October 1, 2007, authorizing
the issuance of the Outstanding SRF Loan.
"Project" shall mean the acquisition, construction, reconstruction, extension, improvement, repairing and equipping of
any part of the System, in whole or in part with the proceeds of a series of Bonds.
"Project Costs" with respect to any Project shall mean costs including the following:
(a) obligations of the Issuer for labor and materials in connection with the construction, installation and
equipping of the Project;
(b) the cost of contract bonds and insurance of all kinds that may be required or necessary during the
construction of the Project;
(c) all costs of architectural and engineering services, including the costs of the Issuer for test borings,
surveys, estimates, plans and specifications and preliminary investigation therefor, and for supervising
construction, as well as for the performance of all other duties required by or consequent upon the proper
construction of the Project;
(d) all expenses incurred in connection with the issuance of Bonds, including without limitation
compensation and expenses of any trustee, Registrar and Paying Agents, expenses of the Issuer, legal and
accounting expenses and fees, costs of printing and engraving, recording and filing fees, compensation of
underwriters, Rating Agency fees, costs of financial services, and accrued interest on the Bonds;
(e) all sums required to reimburse the Issuer for advances made by it for any of the above items or for any
other costs incurred and for work done, whether before or after the adoption of the Series Resolution, which are
properly chargeable to the Project; and
(f) all other components of cost of labor, materials, machinery, and equipment and financing charges
attributable to the Project to the extent permitted by law.
"Project Fund" shall mean the fund by that name established in Section 5.1 of this Resolution.
"Rating" means a rating in one of the categories by a Rating Agency, disregarding pluses, minuses, and numerical
gradations.
"Rating Agencies" or "Rating Agency" means Fitch, Inc., Moody's Investors Service, Inc., and Standard & Poor's, a
division of The McGraw-Hill Companies, Inc., or any successors thereto and any other nationally recognized credit
rating agency then maintaining a rating on any Bonds at the request of the Issuer. If at any time a particular Rating
Agency does not have a rating outstanding with respect to the relevant Bonds, then a reference to Rating Agency or
Rating Agencies shall not include such Rating Agency.
"Rebate Fund" means the fund by that name established in Section 6.10 of this Resolution.
"Registrar" shall mean Wells Fargo Bank, National Association, or such successor as may be approved by the Issuer as
provided herein and who shall carry out the duties prescribed herein with respect to maintaining a register of the owners
of the Bonds. Unless otherwise specified, the Registrar shall also act as Transfer Agent for the Bonds.
"Reimbursement Obligation" means the obligation of the Issuer to directly reimburse any Credit Facility Provider for
amounts paid by such Credit Facility Provider under a Credit Facility, whether or not such obligation to so reimburse is
evidenced by a promissory note or other similar instrument.
"Representation Letter" shall mean the Blanket Issuer Letter of Representations executed by the Issuer and previously
delivered to DTC.
"Resolution" shall mean this Master Resolution of the Governing Body, as it may from time to time be modified,
supplemented or amended by Supplemental Resolutions.
"Revenue Fund" means the fund by that name established in Section 6.2 of this Resolution for the deposit of all Gross
Revenues.
"Senior Bonds" means the Series 2008D Bonds and any other Bonds, including Senior SRF Bonds, issued with a right
to payment and secured by a lien on the Net Revenues on a parity with the Series 2008D Bonds pursuant to Section 8.3
(except with respect to any Credit Facility which may be available only to one or more series of Senior Bonds and except
that Senior SRF Bonds shall not be secured by the Debt Service Reserve Fund).
"Senior SRF Bonds" means the Outstanding SRF Loan and any other SRF Bonds which are issued as Senior Bonds
(except with respect to any Credit Facility which may be available only to one or more series of Senior Bonds and except
that Senior SRF Bonds shall not be secured by the Debt Service Reserve Fund).
"Series 2008D Bonds" shall mean the $1,195,000 Water Revenue Bonds, Series 2008D, dated the date of delivery,
authorized to be issued pursuant to this Resolution.
"Series 2008D Costs of Issuance Account" means the account by that name within the Project Fund established in
Section 5.1 of this Resolution.
"Series 2008D Projects" means the water main replacements and repairs, construction of water main extensions, and the
acquisition and installation of pump station radio communications equipment and facilities being funded with the
proceeds of the Series 2008D Bonds.
"Series Resolution" means a resolution or resolutions of the Governing Body (which may be supplemented by one or
more resolutions) to be adopted prior to and authorizing the issuance and delivery of any series of Bonds. This
Resolution shall constitute the Series Resolution for the Series 2008D Bonds and the Outstanding SRF Loan. Such a
Series Resolution as supplemented shall establish the date or dates of the pertinent series of Bonds, the schedule of
maturities of such Bonds, the name of the purchaser(s) of such series of Bonds, the purchase price thereof, the rate or
rates of interest to be borne thereby, whether fixed or variable, the interest payment dates for such Bonds, the terms and
conditions, if any, under which such Bonds may be made subject to redemption (mandatory or optional) prior to maturity,
the form of such Bonds, and such other details as the Issuer may determine.
"Sinking Fund" shall mean the Bond Principal and Interest Fund established in Section 6.5 of this Resolution.
"SRF Bonds" shall mean such bonds, notes or other obligations as may be issued in connection with the Issuer's
participation in the Iowa Drinking Water State Revolving Fund Program administered by the Iowa Finance Authority and
Iowa Department of Natural Resources, which SRF Bonds may be Senior SRF Bonds or Subordinate SRF Bonds.
"State" shall mean the State of Iowa.
"Subordinate Bond Fund" means the fund by that name established in Section 6.7 of this Resolution
"Subordinate Bonds" means Bonds, including Subordinate SRF Bonds, issued with a right to payment from the Net
Revenues and secured by a lien on the Net Revenues expressly junior and subordinate to the Senior Bonds.
"Subordinate SRF Bonds" means SRF Bonds which are issued as Subordinate Bonds.
"Supplemental Resolution" means any Series Resolution and any modification, amendment or supplement to this
Resolution (other than a Series Resolution).
"Surplus Fund" means the fund by that name established in Section 6.8 of this Resolution.
"System" shall mean and include the municipal water system utility of the Issuer and all properties of every nature
hereinafter owned by the Issuer and comprising part of or used as a part of the System, including all water treatment
facilities, storage facilities, pumping stations, water main extensions, and all related property and improvements and
extensions to the same, all related real and personal property of the Issuer and all related appurtenances, contracts, leases,
franchises and other intangibles of the Issuer.
"Tax Exemption Certificate" shall mean the Tax Exemption Certificate executed by the Treasurer and delivered at the
time of issuance and delivery of the Series 2008D Bonds.
"Treasurer" shall mean the City Treasurer or such other officer of the Issuer as shall succeed to the same duties and
responsibilities with respect to the recording and payment of the Bonds issued hereunder.
"U.S. Treasury Trust Receipts" means receipts or certificates which evidence an undivided ownership interest in the
right to the payment of portions of the principal of or interest on obligations described in clauses (a) or (b) of the term
Government Obligations, provided that such obligations are held by a bank or trust company organized under the laws of
the United States acting as custodian of such obligations, in a special account separate from the general assets of such
custodian.
PLEDGE OF NET REVENUES AND FLOW OF FUNDS
Section 6.1. Pledge of Revenues; Limited Obligations. Subject only to the rights of the Issuer to apply amounts as
provided in this Article VI, all Net Revenues shall be and are hereby pledged to the prompt payment of the Principal of, premium,
if any, and interest on the Bonds; provided, however, that the pledge of the Net Revenues to any Subordinate Bonds shall be
junior and subordinate in lien and right of payment to all Senior Bonds Outstanding at any time. Such moneys and securities
shall immediately be subject to the lien of this pledge for the benefit of the Bondholders without any physical delivery thereof or
further act, and the lien of this pledge shall be valid and binding against the Issuer and against all other persons having claims
against the Issuer, whether such claims shall have arisen in tort, contract, or otherwise, and regardless of whether such persons
have notice of the lien of this pledge. This pledge shall rank superior to all other pledges which may hereafter be made of any of
the Net Revenues. The lien of the pledge made in this Section does not secure any obligation of the Issuer other than the Bonds.
The Bonds shall be limited obligations of the Issuer as provided therein payable solely from the Net Revenues. The
Bonds and the interest thereon shall not constitute a general or moral obligation of the Issuer nor a debt, indebtedness, or
obligation of the Issuer or the State or any political subdivision thereof within the meaning of any constitutional, statutory or
charter provision whatsoever. No taxing power of the Issuer is pledged to the payment of the Principal of, premium, if any, or
interest on the Bonds or other costs incident thereto. Neither the members of the Governing Body nor any person executing the
Bonds shall be liable personally on the Bonds by reason of the issuance thereof.
Section 6.2. Special Funds. The following special funds shall be established, maintained and accounted for as
hereinafter provided so long as any of the Bonds remain Outstanding:
(a) Revenue Fund;
(b) Operation and Maintenance Fund;
(c) Bond Principal and Interest Fund;
(d) Debt Service Reserve Fund;
(e) Subordinate Bond Fund (while Subordinate Bonds are Outstanding);
(f) Surplus Fund; and
(g) Rebate Fund.
The Issuer shall have the right to create special accounts, from time to time, in each of the foregoing Funds as the
Governing Body determines to be desirable.
Section 6.3. Flow of Funds. All Gross Revenues shall be deposited as received into the Revenue Fund. Moneys from
time to time credited to the Revenue Fund shall be applied to the funds hereby established in the following order of priority:
(a) First, to transfer to the Operation and Maintenance Fund sufficient amounts required for the payment of all
current Operation and Maintenance Expenses, as provided in Section 6.4 of this Resolution.
(b) Second, to transfer all amounts to the Bond Principal and Interest Fund as required by Section 6.5 of this
Resolution.
(c) Third, to transfer all amounts to the Debt Service Reserve Fund as required by Section 6.6 of this Resolution.
(d) Fourth, to transfer all amounts to the Rebate Fund as required by Section 6.10 of this Resolution.
(e) Fifth, to transfer all amounts to the Subordinate Bond Fund as required by Section 6.7 of this Resolution.
(f) Sixth, to make deposits to the Surplus Fund as required in Section 6.8 of this Resolution.
Section 6.4. Operation and Maintenance Fund. Money in the Revenue Fund shall first be disbursed to make deposits
into the Operation and Maintenance Fund. There shall be deposited in the Operation and Maintenance Fund each month an
amount sufficient to pay the Operation and Maintenance Expenses due, or expected to come due, during the month, plus an
amount equal to one/twelfth of expenses payable on an annual basis such as insurance. After the first day of the month, further
deposits may be made to the Operations and Maintenance Fund from the Revenue Fund to the extent necessary to pay current
Operation and Maintenance Expenses accrued and payable to the extent that funds are not available in the Surplus Fund.
Section 6.5. Bond Principal and Interest Fund. On or before the last business day of each month so long as any
Bonds remain Outstanding, there shall next be transferred into the Bond Principal and Interest Fund (also referred to as the
"Sinking Fund") from the Revenue Fund, to the extent not funded from capitalized interest, the following amounts:
(a) General. Sufficient moneys shall be paid in periodic installments from the Revenue Fund into the Sinking Fund
for the purpose of paying the Principal of and interest on the Senior Bonds as they become due and payable. Amounts held in the
Sinking Fund shall be used solely to pay interest and Principal of the Senior Bonds as the same become due and payable (whether
at maturity or upon redemption).
(b) Interest. On or before the 30th day preceding each Interest Payment Date for Senior Bonds, the Issuer shall
deposit in the Sinking Fund an amount which, together with any other moneys already on deposit therein and available to make
such payment, is not less than the interest coming due on such Senior Bonds on such Interest Payment Date.
(c) Principal. On or before the 30th day preceding each Principal Maturity Date for Senior Bonds, the Issuer shall
deposit in the Sinking Fund an amount which, together with any other moneys already on deposit therein and available to make
such payment, is not less than the Principal coming due on such Senior Bonds on such Principal Maturity Date.
(d) Application of Money in Sinking Fund. No further payments need be made into the Sinking Fund whenever the
amount available in the Sinking Fund, if added to the amount then in the Debt Service Reserve Fund, is sufficient to retire all
Senior Bonds then Outstanding and to pay all unpaid interest accrued and to accrue prior to such retirement. No moneys in the
Sinking Fund shall be used or applied to the optional purchase or redemption of Senior Bonds prior to maturity unless: (i)
provision shall have been made for the payment of all of the Senior Bonds; or (ii) such moneys are applied to the purchase and
cancellation of Senior Bonds which are subject to mandatory redemption on the next mandatory redemption date, which falls due
within 12 months, such Senior Bonds are purchased at a price not more than would be required for mandatory redemption, and
such Senior Bonds are cancelled upon purchase; or (iii) such moneys are in excess of the then required balance of the Sinking
Fund and are applied to redeem a part of the Senior Bonds Outstanding on the next succeeding redemption date for which the
required notice of redemption may be given.
Section 6.6. Debt Service Reserve Fund. Upon the issuance of the Series 2008D Bonds, the Issuer shall deposit into
the Debt Service Reserve Fund the amounts specified in Section 4.1. There also shall be deposited into the Debt Service Reserve
Fund the amounts specified in Series Resolutions with respect to additional Senior Bonds. Notwithstanding the foregoing, there
shall be no deposit into the Debt Service Reserve Fund with respect to any SRF Bonds nor shall the Debt Service Reserve Fund
secure any SRF Bonds. After the issuance of any Senior Bonds, the increase in the amount of the Debt Service Reserve
Requirement resulting from the issuance of such Senior Bonds shall be accumulated, to the extent not covered by deposits from
Bond proceeds or funds on hand, over a period not exceeding 61 months from the date of delivery of such Senior Bonds in
monthly deposits ("Accumulation Payments"), none of which is less than 1/60 of the amount to be accumulated. The balance of
the Debt Service Reserve Fund shall be maintained at an amount equal to the Debt Service Reserve Requirement (or such lesser
amount that is required to be accumulated in the Debt Service Reserve Fund in connection with the periodic accumulation to the
Debt Service Reserve Requirement after the issuance of Senior Bonds).
There shall be transferred from the Revenue Fund to the Debt Service Reserve Fund the amount necessary to restore, as
further described below, the amount of cash and securities in the Debt Service Reserve Fund to an amount equal to the Debt
Service Reserve Requirement (or such lesser monthly amount that is required to be deposited into the Debt Service Reserve Fund
after the issuance of Senior Bonds). Whenever for any reason the amount in the Sinking Fund is insufficient to pay all interest or
Principal becoming due on the Senior Bonds within the next seven days, the Issuer shall make up any deficiency by transfers
from the following funds and accounts, in the following order of priority: first, from the Surplus Fund; and second, from the
funds and accounts of the Issuer relating to Subordinate Bonds which are not Subordinate SRF Bonds. Whenever, on the date
that such interest or Principal is due, there are insufficient moneys in the Sinking Fund available to make such payment, the Issuer
shall, without further instructions, apply so much as may be needed of the moneys in the Debt Service Reserve Fund to prevent
default in the payment of such interest or Principal, with priority to interest payments. Whenever by reason of any such
application or otherwise (other than required Accumulation Payments), the amount remaining to the credit of the Debt Service
Reserve Fund is less than the amount then required to be in the Debt Service Reserve Fund, such deficiency shall be remedied by
monthly deposits from the Revenue Fund, to the extent funds are available in the Revenue Fund for such purpose after all
required transfers set forth above have been made.
Section 6.7. Subordinate Bond Fund. On or before the last business day of each month so long as any Subordinate
Bonds remain Outstanding, there shall next be transferred into the Subordinate Bond Fund from the Revenue Fund such amounts
as may be required to be deposited into the funds and accounts created by any Series Resolution authorizing the issuance of
Subordinate Bonds, for the purpose of paying Principal of and interest on Subordinate Bonds, and accumulating reserves for such
payments. Moneys credited to the Subordinate Bond Fund shall be used solely for the purpose provided in the Series Resolutions
authorizing the Subordinate Bonds.
Section 6.8. Surplus Fund. After making all payments and transfers hereinabove required, all amounts remaining in
the Revenue Fund shall be transferred by the last day of each month to the Surplus Fund. Amounts credited to the Surplus Fund
may be used for any lawful System purposes, including without limitation, to pay for any Projects, to pay costs of replacing any
depreciable property or equipment of the System, to pay costs of any major or extraordinary repairs, replacements or renewals of
the System, to acquire land or any interest therein, to pay any lease or contractual obligations not paid as Operation and
Maintenance Expenses and to make any transfers required to cure any deficiencies in any funds.
Section 6.9. Deficiencies in Funds. If in any month there shall not be transferred into any fund maintained pursuant to
this Article, the full amounts required herein, amounts equivalent to such deficiency shall be set apart and transferred to such fund
or funds from the first available and unallocated moneys in the Revenue Fund, and such transfer shall be in addition to the
amounts otherwise required to be transferred to such funds during any succeeding month or months.
Section 6.10. Rebate Fund. The Issuer shall calculate, from time to time, as required in order to comply with the
provisions of Section 148(f) of the Internal Revenue Code of 1986, as amended, the amounts required to be rebated (including
penalties) to the United States and shall deposit or cause to be deposited into the Rebate Fund any and all of such amounts
promptly following a determination of any such amount.
The Issuer shall direct any depository of the Rebate Fund to keep all moneys held therein invested in Permitted
Investments. To the extent and at the times required in order to comply with Section 148(f) of the Code, the Issuer may withdraw
funds from the Rebate Fund for the purpose of making rebate payments (including penalties) to the United States as required by
Section 148(f) of the Code. Except as otherwise specifically provided in this Section, moneys in the Rebate Fund may not be
withdrawn from the Rebate Fund for any other purpose.
All Investments Earnings held in the Rebate Fund shall be retained in the Rebate Fund and shall become part of the
Rebate Fund. Moneys held in the Rebate Fund, including the Investment Earnings thereon, if any, shall not be subject to a pledge
in favor of the owners of the Bonds under the Series Resolution and may not be used to pay amounts due on the Bonds or
amounts required for the operation, maintenance, enlargement, or extension of the System.
Whenever the Issuer has filed all reports required to be filed with the United States pursuant to Section 148(f) of the
Code with respect to any series of Bonds and has made all payments required to be made to the United States pursuant to Section
148(f) of the Code relating thereto, all moneys or investments remaining in the Rebate Fund may be transferred to the Surplus
Fund, and such moneys and investments may be used by the Issuer for any lawful purpose.
Section 6.11. Investment of Funds; Transfer of Investment Earnings. (a) Monies in all funds shall, at the option
and direction of the Treasurer, be invested and secured in the manner required by law for public funds, in direct obligations of, or
obligations the principal of and interest on which are unconditionally guaranteed by, the United States of America, or in any other
Permitted Investments; provided that all such deposits and investments shall be made in such manner that the money required to
be expended from any fund will be available at the proper time or times. All such investments shall be valued no less frequently
than the last business day of the Issuer's fiscal year at cost (taking into account normal amortization and accretions of premiums
and discounts) or, in the case of investments having a maturity greater than five years from the date of valuation, at market value,
except that any direct obligations of the United States of America - State and Local Government Series shall be continuously
valued at their par value or principal face amount. For purposes of maximizing investment returns, money in such funds may be
invested, together with money in other funds or with other money of the Issuer, in common investments of the kind described
above, or in a common pool of such investments maintained by the Issuer which shall be kept and held at an official depository of
the Issuer, which shall not be deemed to be a loss of the segregation of such money or funds. Safekeeping receipts, certificates of
participation or other documents clearly evidencing the investment or investment pool in which such money is invested and the
share thereof purchased with such money or owned by such fund shall be held by or on behalf of each such fund. If and to the
extent necessary, such investments shall be promptly sold to prevent any default.
(b) To the extent it is not otherwise provided for in a Series Resolution or is needed to eliminate a deficiency, all
Investment Earnings derived from deposits and investments credited to the funds established in this Article shall be transferred or
credited to the Revenue Fund.
(c) Notwithstanding anything to the contrary contained herein, any interest and income derived from deposits and
investment of any amounts credited to any fund or account may be paid to the federal government if in the written opinion of
bond counsel such payment is required in order to prevent interest on any Bonds from being includable within the gross income
of the owners thereof for federal income tax purposes.
GENERAL PROVISIONS
Section 7.1. Rate Covenant. The Issuer shall continuously own, control, operate, and maintain the System in an
efficient and economical manner and on a revenue producing basis and shall at all times prescribe, fix, maintain and collect rates,
fees and other charges for the services and facilities furnished by the System that are fully sufficient at all times to:
(a) provide for 100% of the budgeted Operation and Maintenance Expenses and for the accumulation in the
Revenue Fund of a reasonable reserve therefor; and
(b) produce Net Revenues in each Fiscal Year which:
(a) will equal at least 125% of the Debt Service Requirement on all Senior Bonds then Outstanding for the year of
computation;
(b) will enable the Issuer to make all required payments, if any, into the Debt Service Reserve Fund and the Rebate
Fund;
(c) will enable the Issuer to accumulate an amount which, in the judgment of the Governing Body, is adequate to
meet the costs of major renewals, replacements, repairs, additions, betterments, and improvements to the System,
necessary to keep the same in good operating condition or as is required by any governmental agency having jurisdiction
over the System; and
(d) will remedy all deficiencies in required payments into any of the funds and accounts established under the
Resolution from prior Fiscal Years.
If the Issuer fails to prescribe, fix, maintain and collect rates, fees and other charges in accordance with the
provisions of this Section, the owners of not less than 25% in aggregate principal of the Bonds then Outstanding, without regard
to whether any Event of Default shall have occurred, may institute and prosecute in any court of competent jurisdiction an
appropriate action to compel the Issuer to prescribe, fix, maintain and collect rates, fees and other charges in accordance with the
requirements of this Section.
Section 7.2. Other Covenants Regarding the Operation of the System. The Issuer hereby covenants and agrees with
each and every holder of the Bonds as follows:
(a) Maintenance and Efficiency. The Issuer will maintain the System in good condition and operate it in an efficient
manner and at reasonable cost.
(b) Insurance. The Issuer shall maintain insurance for the benefit of the holders on the insurable portions of the System
of a kind and in an amount which normally would be carried by private companies engaged in a similar kind of business.
The proceeds of any insurance, except public liability insurance, shall be used to repair or replace the part or parts of the
System damaged or destroyed, or if not so used shall be placed in the Operations and Maintenance Fund.
(c) Accounting and Audits. The Issuer will cause to be kept proper books and accounts adapted to the System and in
accordance with generally accepted accounting practices, and will diligently act to cause the books and accounts to be
audited annually and reported upon not later than 180 days after the end of each Fiscal Year, or as soon thereafter as is
practicable, by an Independent Auditor and will provide copies of the audit report to the Bondholders upon request. The
Bondholders shall have at all reasonable times the right to inspect the System and the records, accounts and data of the
Issuer relating thereto.
(d) State Laws. The Issuer will faithfully and punctually perform all duties with reference to the System required by the
Constitution and laws of the State of Iowa, including the making and collecting of reasonable and sufficient rates for
services rendered by the System as above provided, and will segregate the revenues of the System and apply said
revenues to the funds specified in this Resolution.
(e) Pro e . The Issuer will not sell, lease, mortgage or in any manner dispose of the System, or any capital part
thereof, including any and all extensions and additions that may be made thereto, until satisfaction and discharge of all of
the Bonds shall have been provided for in the manner provided in this Resolution; provided, however, that this covenant
shall not be construed to prevent the disposal by the Issuer of property which in the judgment of the Governing Body has
become inexpedient or unprofitable to use in connection with the System, or if it is to the advantage of the System that
other property of equal or higher value be substituted therefor, and provided further that the proceeds of the disposition of
such property shall be placed in the Operations and Maintenance Fund and used in preference to other sources for capital
improvements to the System.
(f) Fidelity. The Issuer shall maintain fidelity bond coverage in amounts which normally would be carried by
private companies engaged in a similar kind of business on each officer or employee having custody of funds of the
System.
(g) Additional Charges. The Issuer will require proper connecting charges and/or other security for the payment of
services charges.
(h) Budget. The Governing Body of the Issuer shall approve and conduct operations pursuant to a system budget of
revenues and current expenses for each Fiscal Year. Such budget shall take into account revenues and expenses during
the current and last preceding Fiscal Years.
SENIOR BONDS AND SUBORDINATE BONDS
Section 8.1. No Prior Lien Bonds nor Senior Bonds Except as Permitted in the Resolution. All Senior Bonds
shall have complete parity of lien on the Net Revenues despite the fact that any of the Senior Bonds may be delivered at an earlier
date than any other of the Senior Bonds. The Issuer may issue Senior Bonds in accordance with this Resolution, but the Issuer
shall issue no other obligations of any kind or nature payable from or enjoying a lien on the Net Revenues or any part thereof
having priority over or, except as permitted in this Resolution, on a parity with the Series 2008D Bonds.
Section 8.2. Refunding Bonds. Any or all of the Senior Bonds may be refunded prior to maturity, upon
redemption in accordance with their terms, or with the consent of the owners of such Senior Bonds, and the refunding Bonds so
issued shall constitute Senior Bonds, if the Issuer shall have obtained a report from an Independent Auditor or a Financial
Advisor demonstrating that the refunding will reduce the total debt service payments on the Senior Bonds being refunded on a
present value basis or, as an alternative to, and in lieu thereof, the Senior Bonds are being refunded under arrangements which
immediately result in making provision for the payment of the refunded Bonds.
Section 8.3. Senior Bonds. Bonds (including refunding Bonds which do not meet the requirements of Section 8.2)
may also be issued on a parity with the Series 2008D Bonds pursuant to a Series Resolution, and the Bonds so issued shall
constitute Senior Bonds, if all of the following conditions are satisfied:
(a) The Issuer shall have received, at or before issuance of the Senior Bonds, a report by an Independent Auditor or
Financial Advisor to the effect that the historical Net Revenues for the preceding Fiscal Year were equal to at least 125%
of the Maximum Annual Debt Service Requirement on all Senior Bonds which will be Outstanding immediately after the
issuance of the proposed Senior Bonds.
The report by the Independent Auditor or Financial Advisor as aforesaid may contain proforma adjustments to historical
Net Revenues equal to 100% of the increased annual amount attributable to any revision in the schedule of rates, fees and
charges for the services and facilities furnished by the System, adopted prior to the date of delivery of the proposed
Senior Bonds and not fully reflected in the historical Net Revenues actually received during such 12 month period.
For purposes of this Section, "preceding Fiscal Year" shall be the most recently completed Fiscal Year for which audited
financial statements prepared by a certified public accountant are issued and available, but in no event a Fiscal Year
which ended more than eighteen (18) months prior to the date of issuance of the additional Senior Bonds.
(b) The Issuer shall have received, at or before issuance of the Senior Bonds, a report from an Independent Auditor
or Financial Advisor to the effect that the payments required to be made into each account of the Sinking Fund, the Debt
Service Reserve Fund and the Subordinate Bond Fund have been made and the balance in each account of each such
Fund is not less than the balance required by this Resolution as of the date of issuance of the proposed Senior Bonds.
(c) Except with respect to Senior SRF Bonds, the Series Resolution authorizing the proposed Senior Bonds must
require (i) that the amount to be accumulated and maintained in the Debt Service Reserve Fund be increased to not less
than 100% of the Debt Service Reserve Requirement computed on a basis which includes all Senior Bonds which will be
Outstanding immediately after issuance of the proposed Senior Bonds and (ii) that the amount of such increase be
deposited in the Debt Service Reserve Fund on or before the date and at least as fast as specified in Section 6.6 of this
Resolution.
(d) The Series Resolution authorizing the proposed Senior Bonds must require the proceeds of such proposed
Senior Bonds to be used solely to make capital improvements to the System, to fund interest on the proposed Senior
Bonds, to acquire existing or proposed water utilities, extensions or related facilities, to refund other obligations issued
for such purposes (whether or not such refunding Bonds satisfy the requirements of Section 8.2), and to pay expenses
incidental thereto and to the issuance of the proposed Senior Bonds.
Section 8.4. Subordinate Bonds.
(a) Bonds may also be issued on a subordinate basis to the Series 2008D Bonds and any other Senior Bonds
pursuant to a Series Resolution, and the Bonds so issued shall constitute Subordinate Bonds, if all of the following conditions are
satisfied:
(1) The Series Resolution authorizing the Subordinate Bonds shall provide that such Subordinate Bonds shall be
junior and subordinate in lien and right of payment to all Senior Bonds Outstanding at any time.
(2) The Series Resolution authorizing the Subordinate Bonds shall establish funds and accounts for the moneys to
be used to pay debt service on the Subordinate Bonds, and to provide any desired reserves therefor.
(3) The requirements of Section 8.3(d) are met with respect to such Subordinate Bonds (as if such Bonds
constituted Senior Bonds).
(b) In the event of any insolvency or bankruptcy proceedings, and any receivership, liquidation, reorganization, or
other similar proceedings in connection therewith, relative to the Issuer or to its creditors, as such, or to its property, and in the
event of any proceedings for voluntary liquidation, dissolution, or other winding up of the Issuer, whether or not involving
insolvency or bankruptcy, the owners of all Senior Bonds then Outstanding shall be entitled to receive payment in full of all
Principal and interest due on all such Senior Bonds in accordance with the provisions of the Series Resolution before the owners
of the Subordinate Bonds are entitled to receive any payment from the Net Revenues or the amounts held in the funds and
accounts created under the Series Resolution on account of Principal of, premium, if any, or interest on the Subordinate Bonds.
(c) If any Event of Default shall have occurred and be continuing (under circumstances when the provisions of
paragraph (b) are not applicable), the owners of all Senior Bonds then Outstanding shall be entitled to receive payment in full of
all Principal and interest then due on all such Senior Bonds before the owners of the Subordinate Bonds are entitled to receive any
Payment from the Net Revenues or the amounts held in the funds and accounts created under the Series Resolution of Principal
of, premium, if any, or interest on the Subordinate Bonds.
(d) Any series of Subordinate Bonds may have such rank or priority with respect to any other series of Subordinate
Bonds as may be provided in the Series Resolution authorizing such series of Subordinate Bonds and may contain such other
provisions as are not in conflict with the provisions of the Series Resolution.
Section 8.5. Accession of Subordinate Bonds to Senior Status. By proceedings authorizing all or any
Subordinate Bonds, the Issuer may provide for the accession of such Subordinate Bonds to the status of complete parity with the
Senior Bonds if, as of the date of accession, the conditions of Section 8.3 are satisfied, on a basis which includes all Outstanding
Senior Bonds and such Subordinate Bonds, and if on the date of accession:
(a) the Debt Service Reserve Fund contains an amount equal to the Debt Service Reserve Requirement computed
on a basis which includes all Outstanding Senior Bonds and such Subordinate Bonds (but which excludes, in the case of
both Outstanding Senior Bonds and such Subordinate Bonds, any SRF Bonds); and
(b) the Sinking Fund contains the amount which would have been required to be accumulated therein on the date of
accession if the Subordinate Bonds had originally been issued as Senior Bonds.
Section 8.6. Adoption of Proceedings. The Governing Body shall adopt a Series Resolution authorizing the issuance
of any additional Bonds and reciting that the requirements of this Article have been satisfied, and shall set forth in such
proceedings, among other things, the date or dates such additional Bonds shall bear and the rate or rates of interest, interest
payment date or dates, maturity date or dates, and redemption provisions with respect to such additional Bonds and any other
matters applicable to such additional Bonds as the Governing Body may deem advisable.
Any such Series Resolution shall restate and reaffirm, by reference, all of the applicable terms, conditions and provisions
of this Resolution not modified by the Series Resolution.
Section 8.7. Proceedings Authorizing Additional Bonds. No Series Resolution authorizing the issuance of additional
Bonds as permitted under this Article shall conflict with the terms and conditions of this Resolution, except to the extent that the
Series Resolution is adopted for one of the purposes set forth in Section 11.1 and complies with the provisions of Section 11.1 for
the adoption of Supplemental Resolutions without the consent of Bondholders.
Section 8.8. Applicability to Additional Bonds and Prior Resolution. (a) The provisions of this Resolution shall be
construed as including and being applicable to any future series of Bonds, and any such Bonds shall be treated, unless otherwise
specifically stated, as if they had been issued together with the Series 2008D Bonds and pursuant to the terms of this Resolution.
(b) In accordance with the Consent and Waiver dated September 29, 2008 executed by the Iowa Finance Authority,
in its capacity as the sole holder of the Outstanding SRF Loan, the provisions of the Prior Resolution are hereby amended and
restated to conform to the provisions of this Resolution, and the Outstanding SRF Loan shall be deemed to be a Senior SRF Bond
within the meaning of this Resolution. This Resolution shall be construed whenever possible so as not to conflict with the terms
and conditions of the Loan and Disbursement Agreement approved in the Prior Resolution and entered into at the time of issuance
of the Outstanding SRF Loan. In the event such construction is not possible, or in the event of any conflict or inconsistency
between the terms hereof and those of the foregoing Loan and Disbursement Agreement, the terms of said Loan and
Disbursement Agreement shall prevail and be given effect to the extent necessary to resolve any such conflict or inconsistency.
Section 8.9. Credit Facilities. In connection with the issuance of any Bonds under the Series Resolution, the
Issuer may obtain or cause to be obtained one or more Credit Facilities providing for payment of all or a portion of the Principal
of, premium, if any, or interest due or to become due on such Bonds, providing for the purchase of such Bonds by the Credit
Facility Provider, or providing funds for the purchase of such Bonds by the Issuer. In connection therewith the Issuer shall enter
into Credit Facility Agreements with such Credit Facility Providers providing for, among other things, (i) the payment of fees and
expenses to such Credit Facility Providers for the issuance of such Credit Facilities; (ii) the terms and conditions of such Credit
Facilities and the Bonds affected thereby; and (iii) the security, if any, to be provided for the issuance of such Credit Facilities.
The Issuer may secure any Credit Facility by an agreement providing for the purchase of the Bonds secured thereby with such
adjustments to the rate of interest, method of determining interest, maturity, or redemption provisions as are specified by the
Issuer in the applicable Series Resolution. The Issuer may in a Credit Facility Agreement agree to directly reimburse such Credit
Facility Provider for amounts paid under the terms of such Credit Facility, together with interest thereon; provided, however, that
no Reimbursement Obligation shall be created for purposes of the Series Resolution until amounts are paid under such Credit
Facility. Any such Reimbursement Obligation shall be deemed to be a part of the Bonds to which the Credit Facility relates
which gave rise to such Reimbursement Obligation, and references to Principal and interest payments with respect to such Bonds
shall include Principal and interest due on the Reimbursement Obligation incurred as a result of payment of such Bonds with the
Credit Facility. Any such Credit Facility shall be for the benefit of and secure such Bonds or portion thereof as specified in the
applicable Series Resolution.
DISCHARGE AND SATISFACTION
Section 9.1. Discharge and Satisfaction of Bonds. The covenants, liens and pledges entered into, created or imposed
pursuant to this Resolution or any Series Resolution may be fully discharged and satisfied with respect to the Bonds authorized
thereunder, or any of them, in any one or more of the following ways:
(a) By paying the said Bonds when the same shall become due and payable; and
(b) By depositing in trust with the Treasurer, or with a corporate trustee designated by the Governing Body for the
payment of said Bonds and irrevocably appropriated exclusively to that purpose an amount in cash or Government
Obligations the maturities and income of which shall be sufficient to retire at maturity, or by redemption prior to maturity
on a designated date upon which said Bonds may be redeemed, all of such Bonds Outstanding at the time, together with
the interest thereon to maturity or to the designated redemption date, premiums thereon, if any that may be payable on the
redemption of the same; provided that proper notice of redemption of all such obligations to be redeemed shall have been
previously published or provisions shall have been made for such publication.
Upon such payment or deposit of money or securities, or both, in the amount and manner provided by this Section, all
liability of the Issuer with respect to such Bonds shall cease, determine and be completely discharged, and the holders thereof
shall be entitled only to payment out of the money or securities so deposited.
EVENTS OF DEFAULT AND REMEDIES
Section 10.1. Events of Default. An Event of Default is one or more of the following:
(a) A default shall be made in the due and punctual payment of the principal or redemption price of any Bond when
and as the same shall become due and payable, whether at maturity or by call or proceedings for redemption, or
otherwise;
(b) A default shall be made in the due and punctual payment of any installment of interest on any Bond when and
as such interest installment shall become due and payable;
(c) A default shall be made by the Issuer in the performance or observance of any other of the covenants,
agreements or conditions on its part in the Series Resolution or in the Bonds contained, and such default shall have
continued for a period of 90 days after written notice specifying such default and requiring that it shall have been
remedied is given to the Issuer by the owners of not less than 25% in principal amount of the Bonds Outstanding;
provided that, if such failure cannot be corrected within such 90 day period, it shall not constitute an Event of Default if
corrective action is instituted within such period and such corrective action is diligently pursued until the failure is
corrected, provided that if such corrective action includes legal action such legal action shall be diligently pursued until
either the failure is corrected or such failure shall be determined by a court of final and competent jurisdiction as not
correctable as a matter of law.
Section 10.2. Default and Remedies. In the event of (a) a default on the part of the Issuer in the prompt and full
payment of principal of or interest on any Bond, or (b) a default in the keeping of any other covenant herein contained (if such
default shall continue for a period of ninety days after written notice specifying the nature of the default and requiring it to be
remedied is received by the Issuer), the holders of the Bonds shall have the right to proceed at law or in equity by suit, action or
mandamus to enforce and compel performance of the duties required by the terms of the Resolution authorizing the issuance of
the Bonds, or to obtain the appointment of a receiver to take possession of and operate the System, and to perform the duties
required by the terms of the Resolution. The holders of the Bonds shall have no right to accelerate any payment obligation of the
Issuer with respect to the Bonds.
No holder of any Bond shall have the right to institute any proceeding, judicial or otherwise, for the enforcement of the
covenants herein contained, except as provided in this Section. The holders of not less than 25% in principal amount of the
Outstanding Bonds shall have the right, either at law or in equity, through suit, action or other proceedings, to protest and enforce
the rights of all holders of such Bonds and to compel the performance of any and all of the covenants required herein to be
performed by the Issuer, and its officers and employees, including but not limited to the fixing and maintaining of rates, fees and
charges and the collection and proper segregation of Net Revenues and the application and use thereof. The holders of a majority
in principal amount of Outstanding Bonds shall have the right to direct the time, method and place of conducting any proceeding
for any remedy available to the Bondholders or the exercise of any power conferred on them and the right to waive a default in
the performance of any such covenant, and its consequences, except a default in the payment of the principal of or interest on any
Bond when due. Nothing herein, however, shall impair the absolute and unconditional right of the holder of each Bond to receive
payment of the principal of, premium, if any, and interest on such Bond as such principal, premium and interest respectively
become due, and to institute suit for any such payment.
Section 10.3. Resolution a Contract. The provisions of this Resolution shall constitute a contract between the Issuer
and the holder or holders of the Bonds, and after the issuance of any of the Bonds no change, variation or alteration of any kind in
the provisions of this Resolution shall be made in any manner, except as provided in Article XI, until such time as all of the
Bonds, and interest due thereon, shall have been satisfied and discharged as provided in this Resolution.
SUPPLEMENTAL RESOLUTIONS
Section 11.1. Amendment of Resolution Without Consent. The Issuer may, without the consent of or notice to any of
the holders of the Bonds, approve one or more Supplemental Resolutions, which thereafter shall form a part of this Resolution,
for any one or more of the following purposes:
(a) to cure any ambiguity, defect, omission or inconsistent provision in this Resolution or in the Bonds; or to comply
with any applicable provision of law or regulation of federal or state agencies; provided, however, that such action shall
not materially adversely affect the interests of the holders of the Bonds;
(b) to change the terms or provisions of this Resolution to the extent necessary to prevent the interest on the Bonds from
being includable within the gross income of the holders thereof for federal income tax purposes;
(c) to grant to or confer upon the holders of the Bonds any additional rights, remedies, powers or authority that may
lawfully be granted to or conferred upon the holders of the Bonds;
(d) to add to the covenants and agreements of the Issuer contained in this Resolution other covenants and agreements of,
or conditions or restrictions upon, the Issuer or to surrender or eliminate any right or power reserved to or conferred upon
the Issuer in this Resolution;
(e) To subject to the lien and pledge of this Resolution additional Net Revenues as may be permitted by law;
(f) To modify any of the provisions of the Resolution in any respect if such modification shall not become effective until
after the Bonds Outstanding immediately prior to the effective date of such Supplemental Resolution shall cease to be
Outstanding and if any Bonds issued contemporaneously with or after the effective date of such Supplemental Resolution
shall contain a specific reference to the modifications contained in such subsequent proceedings;
(g) To modify the Resolution to provide for the issuance of Senior Bonds or Subordinate Bonds, and such modification
may deal with any subjects and make any provisions which the Issuer deems necessary or desirable for that purpose;
(h) To modify any of the provisions of the Resolution in any respect (other than a modification of the type described in
Section 11.2 requiring the consent of the Bondholders); provided that for (i) any Outstanding Bonds which are assigned a
Rating and which are not secured by a Credit Facility providing for the payment of the full amount of Principal and
interest to be paid thereon, each Rating Agency shall have given written notification to the Issuer that such modification
will not cause the then applicable Rating on any Bonds to be reduced or withdrawn, and (ii) any Outstanding Bonds
which are secured by Credit Facilities providing for the payment of the full amount of the Principal and interest to be
paid thereon, each Credit Facility Provider shall have consented in writing to such modification.
Section 11.2. Amendment of Resolution Requiring Consent. The Issuer also may approve one or more Supplemental
Resolutions, which thereafter shall form a part of this Resolution, if such Supplement Resolution shall have been consented to by
holders of not less than two-thirds (2/3) in principal amount of the Bonds at any time Outstanding (not including in any case any
Bonds which may then be held or owned by or for the account of the Issuer, but including such refunding Bonds as may have
been issued for the purpose of refunding any of such Bonds if such refunding Bonds shall not then be owned by the Issuer); but
this Resolution may not be so amended in such manner as to:
(a) Make any change in the maturity or interest rate of the Bonds, or modify the terms of payment of Principal of or
interest on the Bonds or any of them or impose any conditions with respect to such payment;
(b) Materially affect the rights of the holders of less than all of the Bonds then Outstanding; and
(c) Reduce the percentage of the Principal amount of Bonds, the consent of the holders of which is required to effect a
further amendment;
in each case without the consent of the owners of all of the affected Bonds then Outstanding.
Whenever the Issuer shall propose to amend this Resolution under the provisions of this Section, it shall cause notice of
the Supplemental Resolution to be filed with the Original Purchaser and to be mailed by certified mail to each registered owner of
any Bond as shown by the records of the Registrar. Such notice shall set forth the nature of the proposed amendment and shall
state that a copy of the proposed Supplemental Resolution is on file in the office of the City Clerk.
Whenever at any time within one year from the date of the mailing of said notice there shall be filed with the City Clerk
an instrument or instruments executed by the holders of at least two-thirds in aggregate principal amount of the Bonds then
outstanding as in this Section defined, which instrument or instruments shall refer to the proposed Supplemental Resolution
described in said notice and shall specifically consent to and approve the adoption thereof, thereupon, but not otherwise, the
Governing Body of the Issuer may adopt such Supplemental Resolution and such Supplemental Resolution shall become effective
and binding upon the holders of all of the Bonds.
Any consent given by the holder of a Bond pursuant to the provisions of this Section shall be irrevocable for a period of
six months from the date of the instrument evidencing such consent and shall be conclusive and binding upon all future holders of
the same Bond during such period. Such consent may be revoked at any time after six months from the date of such instrument
by the holder who gave such consent or by a successor in title by filing notice of such revocation with the City Clerk.
The fact and date of the execution of any instrument under the provisions of this Section may be proved by the
certificate of any officer in any jurisdiction who by the laws thereof is authorized to take acknowledgments of deeds within such
jurisdiction that the person signing such instrument acknowledged before him the execution thereof, or may be proved by an
affidavit of a witness to such execution sworn to before such officer.
The amount and numbers of the Bonds held by any person executing such instrument and the date of his holding the
same may be proved by an affidavit by such person or by a certificate executed by an officer of a bank or trust company showing
that on the date therein mentioned such person had on deposit with such bank or trust company the Bonds described in such
certificate.
EXCERPTS FROM THE SERIES RESOLUTION
2. Definitions. Except as otherwise provided below in this Article I, all words and terms defined in Article I of the
Master Resolution shall have the same meanings in this Series Resolution as such defined words and terms are given in Article I
of the Master Resolution. In addition, the following terms shall have the following meanings in this Series Resolution unless the
text expressly or by necessary implication requires otherwise:
• "Bonds" or the "Series 2021C Bonds" shall mean $3,720,000* Water Revenue Refunding Bonds, Series 2021C,
authorized to be issued by this Resolution.
"Call Date" shall mean August 19, 2021, on which date the Refunded Bonds shall be redeemed and paid.
• "Cede & Co." shall mean Cede & Co., the nominee of DTC, and any successor nominee of DTC with respect to
the Bonds.
• "Clerk" shall mean the City Clerk, or such other officer of the successor Governing Body as shall be charged
with substantially the same duties and responsibilities.
• "Continuing Disclosure Certificate" shall mean that certain Continuing Disclosure Certificate executed by the
Issuer and dated the date of issuance and delivery of the Bonds, as originally executed and as it may be amended from
time to time in accordance with the terms thereof.
• "Master Resolution" means the City Council Resolution No. 379-08, passed and approved on October 20, 2008,
entitled "Master Resolution relating to the issuance of Water Revenue Bonds by the City of Dubuque, Iowa under the
provisions of Chapter 384 of the Code of Iowa, authorizing and providing for the issuance and securing the payment of
$1,195,000 Water Revenue Bonds, Series 2008D, providing for a method of payment thereof, funding a Debt Service
Reserve Fund, and related matters," as the same may be amended from time to time.
"Original Purchaser" shall mean the purchaser of the Bonds from Issuer at the time of their original issuance.
• "Paying Agent" shall mean UMB Bank, N.A., or such successor as may be approved by Issuer as provided
herein and who shall carry out the duties prescribed herein as Issuer's agent to provide for the payment of principal of
and interest on the Bonds as the same shall become due.
• "Refunded Bonds" shall mean $215,000 of the Water Revenue Bonds, Series 201 OD dated September 21, 2010,
and $3,610,000 of the Water Revenue Bonds, Series 2008D dated November 4, 2008.
• "Registrar" shall mean UMB Bank, N.A. of West Des Moines, Iowa, or such successor as may be approved by
Issuer as provided herein and who shall carry out the duties prescribed herein with respect to maintaining a register of
the owners of the Bonds. Unless otherwise specified, the Registrar shall also act as Transfer Agent for the Bonds.
• "Reserve Fund Requirement" shall have the meaning set forth below, notwithstanding any contrary language in
the Master Resolution: the amount determined to be a reasonable reserve for the payment of Principal of and interest on
Senior Bonds (other than Senior SRF Bonds), which amount shall be the least of (a) 10% of the stated Principal amount
of the Senior Bonds (other than Senior SRF Bonds), (b) the maximum annual Principal and interest requirements on the
Senior Bonds (other than Senior SRF Bonds), or (c) 125% of the average annual Principal and interest requirements on
the Senior Bonds (other than Senior SRF Bonds). If the aggregate initial offering price of a series of Bonds to the public
is less than 98% or more than 102% of par, such offering price shall be used in lieu of the stated Principal amount.
Notwithstanding the foregoing, the Debt Service Reserve Requirement, if any, in connection with any Senior SRF Bonds
or any Subordinate Bonds shall be as provided in the Series Resolution authorizing the issuance of such Senior SRF
Bonds or such Subordinate Bonds.
"Series Resolution" shall mean this resolution authorizing the issuance of the Bonds.
"Series 2021 C Costs of Issuance Account" means the account by that name within the Project Fund established
in Section 5.1 of the Master Resolution.
"Series 2021 C Projects" shall paying costs of refunding outstanding revenue obligations of the City, including
Water Revenue Bonds, Series 2010D dated September 21, 2010, and Water Revenue Bonds, Series 2008D dated
November 4, 2008.
"Series 2021C Projects Account" means the account by that name within the Project Fund established in
Section 5.1 of the Master Resolution.
"Series 2021 C Rebate Account" means the account by that name within the Rebate Fund established in Section
6.10 of the Master Resolution.
• "Tax Exemption Certificate" shall mean the Tax Exemption Certificate executed by the Treasurer and delivered
at the time of issuance and delivery of the Bonds.
• "Treasurer" shall mean the Director of Finance & Budget or such other officer as shall succeed to the same
duties and responsibilities with respect to the recording and payment of the Bonds issued hereunder.
3. Authority. The Bonds authorized by this Resolution shall be issued pursuant to Division V, Chapter 384 of the
City Code of Iowa, and in compliance with the Master Resolution and all applicable provisions of the Constitution and laws of
the State of Iowa.
4. Status as Series Resolution and Senior Bonds. This Series Resolution shall constitute and be treated as a Series
Resolution within the meaning of the Master Resolution. The terms of the Master Resolution are hereby ratified, confirmed
and approved and all of the provisions thereof are hereby made applicable to the Series 2021C Bonds as if fully set forth
herein, except as the same may otherwise be modified in this Series Resolution. The Series 2012C Bonds shall constitute and
be treated for all purposes as Senior Bonds under the Master Resolution.
5. Authorization and Purpose. Pursuant to the Master Resolution, there are hereby authorized to be issued,
negotiable, serial, fully registered Water Revenue Refunding Bonds of the City, in the County of Dubuque, State of Iowa, Series
2021, in the aggregate amount of $3,720,000* for the purpose of paying costs of refunding outstanding revenue obligations of the
City, including Water Revenue Bonds, Series 2010D dated September 21, 2010, and Water Revenue Bonds, Series 2008D dated
November 4, 2008.
6. Source of Payment. The Bonds herein authorized and Parity Bonds and the interest thereon shall be payable
solely and only out of the net earnings of the System and shall be a first lien on the future Net Revenues of the System. The
Bonds shall not be general obligations of the Issuer nor shall they be payable in any manner by taxation and the Issuer shall be in
no manner liable by reason of the failure of the Net Revenues to be sufficient for the payment of the Bonds.
7. Bond Details. Pursuant to the provisions of the Master Resolution, and in particular Section 8.3 thereof, Water
Revenue Refunding Bonds of the City in the amount of $3,720,000* shall be issued pursuant to the provisions of Section 384.83
of the City Code of Iowa for the aforesaid purpose. The Bonds shall be issued as Senior Bonds under the terms of the Master
Resolution, shall be designated "WATER REVENUE REFUNDING BOND, SERIES 2021 C", be dated August 18, 2021, and
bear interest from the date thereof, until payment thereof, at the office of the Paying Agent, the interest payable on December 1,
2021 and semiannually thereafter on the 1 st day of June and December in each year until maturity at the rates hereinafter
provided.
The Bonds shall be in substantially the form set forth in Exhibit A attached hereto, with such variations, omissions,
substitutions and insertions as are required or permitted by this Series Resolution.
The Bonds shall be executed by the manual or facsimile signature of the Mayor and attested by the manual or facsimile
signature of the City Clerk, and impressed or printed with the seal of the City and shall be fully registered as to both principal and
interest as provided in this Resolution; principal, interest and premium, if any shall be payable at the office of the Paying Agent
by mailing of a check to the registered owner of the Bond. The Bonds shall be in the denomination of $5,000 or multiples
thereof. The Bonds shall mature and bear interest as follows:
Principal Interest Maturity
Amount Rate June 1 st
[* Term Bonds]
8. Redemption. Bonds maturing after June 1, 2028, may be called for redemption by the Issuer and paid before
maturity on such date or any date thereafter, from any funds regardless of source, in whole or from time to time in part, in any
order of maturity and within an annual maturity by lot. The terms of redemption shall be par, plus accrued interest to date of call.
Notice of redemption shall be given as provided in the Master Resolution.
9. Mandatory Payment and Redemption of Bonds. All Bonds are subject to mandatory redemption prior to
maturity at a price equal to 100% of the portion of the principal amount thereof to be redeemed plus accrued interest at the
redemption date on June I st of each of the years in the principal amount set opposite each year in the following schedule:
The Term Bonds
Principal Interest Maturity
Amount Rate June 1st
* Maturity
The principal amount of Term Bonds may be reduced through the earlier optional redemption, with any partial optional
redemption of the Term Bonds credited against future mandatory redemption requirements for such Terms Bonds in such order
as the Council shall determine.
10. Issuance of Bonds in Book -Entry Form; Replacement Bonds.
a. Notwithstanding the other provisions of this Resolution regarding registration, ownership, transfer,
payment and exchange of the Bonds, unless the Issuer determines to permit the exchange of Depository Bonds for Bonds
in the Authorized Denominations, the Bonds shall be issued as Depository Bonds in denominations of the entire principal
amount of each maturity of Bonds (or, if a portion of the principal amount is prepaid, the principal amount less the prepaid
amount); and such Depository Bonds shall be registered in the name of Cede & Co., as nominee of DTC. Payment of
semi-annual interest for any Depository Bond shall be made by wire transfer or New York Clearing House or equivalent
next day funds to the account of Cede & Co. on the interest payment date for the Bonds at the address indicated in or
pursuant to the Representation Letter.
b. With respect to Depository Bonds, neither the Issuer nor the Paying Agent shall have any responsibility
or obligation to any Participant or to any Beneficial Owner. Without limiting the immediately preceding sentence, neither
the Issuer nor the Paying Agent shall have any responsibility or obligation with respect to (i) the accuracy of the records of
DTC or its nominee or of any Participant with respect to any ownership interest in the Bonds, (ii) the delivery to any
Participant, any Beneficial Owner or any other person, other than DTC or its nominee, of any notice with respect to the
Bonds, (iii) the payment to any Participant, any Beneficial Owner or any other person, other than DTC or its nominee, of
any amount with respect to the principal of, premium, if any, or interest on the Bonds, or (iv) the failure of DTC to
provide any information or notification on behalf of any Participant or Beneficial Owner.
The Issuer and the Paying Agent may treat DTC or its nominee as, and deem DTC or its nominee to be, the
absolute owner of each Bond for the purpose of payment of the principal of, premium, if any, and interest on such Bond,
for the purpose of all other matters with respect to such Bond, for the purpose of registering transfers with respect to
such Bonds, and for all other purposes whatsoever (except for the giving of certain Bondholder consents, in accordance
with the practices and procedures of DTC as may be applicable thereto). The Paying Agent shall pay all principal of,
premium, if any, and interest on the Bonds only to or upon the order of the Bondholders as shown on the Registration
Books, and all such payments shall be valid and effective to fully satisfy and discharge the Issuer's obligations with
respect to the principal of, premium, if any, and interest on the Bonds to the extent so paid. Notwithstanding the
provisions of this Resolution to the contrary (including without limitation those provisions relating to the surrender of
Bonds, registration thereof, and issuance in Authorized Denominations), as long as the Bonds are Depository Bonds, full
effect shall be given to the Representation Letter and the procedures and practices of DTC thereunder, and the Paying
Agent shall comply therewith.
C. Upon (i) a determination by the Issuer that DTC is no longer able to carry out its functions or is
otherwise determined unsatisfactory, or (ii) a determination by DTC that the Bonds are no longer eligible for its
depository services or (iii) a determination by the Paying Agent that DTC has resigned or discontinued its services for the
Bonds, if such substitution is authorized by law, the Issuer shall (A) designate a satisfactory substitute depository as set
forth below or, if a satisfactory substitute is not found, (B) provide for the exchange of Depository Bonds for replacement
Bonds in Authorized Denominations.
d. To the extent authorized by law, if the Issuer determines to provide for the exchange of Depository
Bonds for Bonds in Authorized Denominations, the Issuer shall so notify the Paying Agent and shall provide the Registrar
with a supply of executed unauthenticated Bonds to be so exchanged. The Registrar shall thereupon notify the owners of
the Bonds and provide for such exchange, and to the extent that the Beneficial Owners are designated as the transferee by
the owners, the Bonds will be delivered in appropriate form, content and Authorized Denominations to the Beneficial
Owners, as their interests appear.
e. Any substitute depository shall be designated in writing by the Issuer to the Paying Agent. Any such
substitute depository shall be a qualified and registered "clearing agency" as provided in Section 17A of the Securities
Exchange Act of 1934, as amended. The substitute depository shall provide for (i) immobilization of the Depository
Bonds, (ii) registration and transfer of interests in Depository Bonds by book entries made on records of the depository or
its nominee and (iii) payment of principal of, premium, if any, and interest on the Bonds in accordance with and as such
interests may appear with respect to such book entries.
Registration of Bonds; Annointment of Registrar: Transfer: Ownershin: Deliverv: and Cancellation.
a. Registration. The ownership of Bonds may be transferred only by the making of an entry upon the
books kept for the registration and transfer of ownership of the Bonds, and in no other way. UMB Bank, N.A. is hereby
appointed as Bond Registrar under the terms of this Resolution and under the provisions of a separate agreement with the
Issuer filed herewith which is made a part hereof by this reference. Registrar shall maintain the books of the Issuer for the
registration of ownership of the Bonds for the payment of principal of and interest on the Bonds as provided in this
Resolution. All Bonds shall be negotiable as provided in Article 8 of the Uniform Commercial Code and Section
384.83(5) of the Code of Iowa, subject to the provisions for registration and transfer contained in the Bonds and in this
Resolution.
b. Transfer. The ownership of any Bond may be transferred only upon the Registration Books kept for the
registration and transfer of Bonds and only upon surrender thereof at the office of the Registrar together with an
assignment duly executed by the holder or his duly authorized attorney in fact in such form as shall be satisfactory to the
Registrar, along with the address and social security number or federal employer identification number of such transferee
(or, if registration is to be made in the name of multiple individuals, of all such transferees). In the event that the address
of the registered owner of a Bond (other than a registered owner which is the nominee of the broker or dealer in question)
is that of a broker or dealer, there must be disclosed on the Registration Books the information pertaining to the registered
owner required above. Upon the transfer of any such Bond, a new fully registered Bond, of any denomination or
denominations permitted by this Resolution in aggregate principal amount equal to the unmatured and unredeemed
principal amount of such transferred fully registered Bond, and bearing interest at the same rate and maturing on the same
date or dates shall be delivered by the Registrar.
C. Registration of Transferred Bonds. In all cases of the transfer of the Bonds, the Registrar shall register,
at the earliest practicable time, on the Registration Books, the Bonds, in accordance with the provisions of this Resolution.
d. Ownership. As to any Bond, the person in whose name the ownership of the same shall be registered on
the Registration Books of the Registrar shall be deemed and regarded as the absolute owner thereof for all purposes, and
payment of or on account of the principal of any such Bonds and the premium, if any, and interest thereon shall be made
only to or upon the order of the registered owner thereof or his legal representative. All such payments shall be valid and
effectual to satisfy and discharge the liability upon such Bond, including the interest thereon, to the extent of the sum or
sums so paid.
e. Cancellation. All Bonds which have been redeemed shall not be reissued but shall be cancelled by the
Registrar. All Bonds which are cancelled by the Registrar shall be destroyed and a certificate of the destruction thereof
shall be furnished promptly to the Issuer; provided that if the Issuer shall so direct, the Registrar shall forward the
cancelled Bonds to the Issuer.
f. Non -Presentment of Bonds. In the event any payment check, wire, or electronic transfer of funds
representing payment of principal of or interest on the Bonds is returned to the Paying Agent or if any bond is not
presented for payment of principal at the maturity or redemption date, if funds sufficient to pay such principal of or
interest on Bonds shall have been made available to the Paying Agent for the benefit of the owner thereof, all liability of
the Issuer to the owner thereof for such interest or payment of such Bonds shall forthwith cease, terminate and be
completely discharged, and thereupon it shall be the duty of the Paying Agent to hold such funds, without liability for
interest thereon, for the benefit of the owner of such Bonds who shall thereafter be restricted exclusively to such funds for
any claim of whatever nature on his part under this Resolution or on, or with respect to, such interest or Bonds. The
Paying Agent's obligation to hold such funds shall continue for a period equal to two years and six months following the
date on which such interest or principal became due, whether at maturity, or at the date fixed for redemption thereof, or
otherwise, at which time the Paying Agent shall surrender any remaining funds so held to the Issuer, whereupon any claim
under this Resolution by the Owners of such interest or Bonds of whatever nature shall be made upon the Issuer.
12. Reissuance of Mutilated, Destroyed, Stolen or Lost Bonds. In case any outstanding Bond shall become
mutilated or be destroyed, stolen or lost, the Issuer shall at the request of Registrar authenticate and deliver a new Bond of like
tenor and amount as the Bond so mutilated, destroyed, stolen or lost, in exchange and substitution for such mutilated Bond to
Registrar, upon surrender of such mutilated Bond, or in lieu of and substitution for the Bond destroyed, stolen or lost, upon filing
with the Registrar evidence satisfactory to the Registrar and Issuer that such Bond has been destroyed, stolen or lost and proof of
ownership thereof, and upon furnishing the Registrar and Issuer with satisfactory indemnity and complying with such other
reasonable regulations as the Issuer or its agent may prescribe and paying such expenses as the Issuer may incur in connection
therewith.
13. Record Date. Payments of principal and interest, otherwise than upon full redemption, made in respect of any
Bond, shall be made to the registered holder thereof or to their designated agent as the same appear on the books of the Registrar
on the 15th day of the month preceding the payment date. All such payments shall fully discharge the obligations of the Issuer in
respect of such Bonds to the extent of the payments so made. Payment of principal shall only be made upon surrender of the
Bond to the Paying Agent.
14. Execution, Authentication and Delivery of the Bonds. Upon the adoption of this Resolution, the Mayor and
Clerk shall execute and deliver the Bonds to the Registrar, who shall authenticate the Bonds and deliver the same to or upon order
of the Original Purchaser. No Bond shall be valid or obligatory for any purpose or shall be entitled to any right or benefit
hereunder unless the Registrar shall duly endorse and execute on such Bond a Certificate of Authentication substantially in the
form of the Certificate herein set forth. Such Certificate upon any Bond executed on behalf of the Issuer shall be conclusive
evidence that the Bond so authenticated has been duly issued under this Resolution and that the holder thereof is entitled to the
benefits of this Resolution.
No Bonds shall be authenticated and delivered by the Registrar, unless and until there shall have been provided the
following:
A certified copy of the resolution of Issuer authorizing the issuance of the Bonds.
A written order of Issuer signed by the Treasurer directing the authentication and delivery of the Bonds to or
upon the order of the Original Purchaser upon payment of the purchase price as set forth therein.
The opinion of Ahlers & Cooney, P.C., Bond Counsel, affirming the validity and legality of all the Bonds
proposed to be issued.
15. Right to Name Substitute Pang Agent or Re ig strar. Issuer reserves the right to name a substitute, successor
Registrar or Paying Agent upon giving prompt written notice to each registered bondholder.
16. Application of Bond Proceeds - Redemption and Current Refunding of Refunded Bonds. Proceeds of the
Bonds shall be applied as follows:
♦ An amount equal to $ shall be deposited in the Reserve Fund.
♦ $ of proceeds shall be deposited in trust with the Treasurer for the payment of the Refunded
Bonds and is irrevocably appropriated exclusively to the payment of principal of, interest on and premium, if
any, due on the redemption thereof of the Refunded Bonds. Said amount shall be held separately from all other
moneys or accounts, in cash or direct obligations of the United States, maturing on or before the Call Date of
the Refunded Bonds, and is determined to be sufficient to retire on the designated Call Date all of such
obligations, together with the interest thereon to the designated redemption date and premium thereon, if any,
that may be payable on the redemption of the same.
♦ The remaining proceeds shall be held by the Treasurer and applied to pay the costs of issuance of the Bonds.
The Refunded Bonds are called and shall be redeemed as of the Call Date. The Clerk is hereby authorized and directed
to cause notice of such redemption to be given in compliance with the terms of the Refunded Bonds.
Any excess proceeds remaining on hand after completion of the purpose of issuance shall be used to call or otherwise
retire Bonds.
17. The Series 2021C Bonds shall be issued as Senior Bonds under the Master Resolution, and shall be secured by
and payable from amounts held in the Debt Service Reserve Fund established in the Master Resolution. Upon issuance of the
Series 2021 C Bonds, the amount to be accumulated and maintained in the Debt Service Reserve Fund shall be increased, and
shall continue to remain equal to 100% of the Debt Service Reserve Requirement computed on a basis which includes all Senior
Bonds which will be Outstanding immediately after issuance of the Series 2021 C Bonds and which are not Senior SRF Bonds.
Notwithstanding any language to the contrary in the Master Resolution, the Debt Service Reserve Requirement shall be computed
as described in this Series Resolution.
18. Disposition of Bond Proceeds; Arbitrage Not Permitted. The Issuer reasonably expects and covenants that no
use will be made of the proceeds from the issuance and sale of the Bonds issued hereunder which will cause any of the Bonds to
be classified as arbitrage bonds within the meaning of Section 148(a) and (b) of the Internal Revenue Code of the United States,
and that throughout the term of the Bonds it will comply with the requirements of the statute and regulations issued thereunder.
To the best knowledge and belief of the Issuer, there are no facts or circumstances that would materially change the
foregoing statements or the conclusion that it is not expected that the proceeds of the Bonds will be used in a manner that would
cause the Bonds to be arbitrage bonds. Without limiting the generality of the foregoing, the Issuer hereby agrees to comply with
the provisions of the Tax Exemption Certificate and the provisions of the Tax Exemption Certificate are hereby incorporated by
reference as part of this Resolution. The Treasurer is hereby directed to make and insert all calculations and determinations
necessary to complete the Tax Exemption Certificate in all respects and to execute and deliver the Tax Exemption Certificate at
issuance of the Bonds to certify as to the reasonable expectations and covenants of the Issuer at that date.
The Issuer covenants that it will treat as Yield Restricted any proceeds of the Bonds remaining unexpended after three
years from the issuance and any other funds required by the Tax Exemption Certificate to be so treated. If any investments are
held with respect to the Bonds and Parity Bonds, the Issuer shall treat the same for the purpose of restricted yield as held in
proportion to the original principal amounts of each issue.
The Issuer covenants that it will exceed any investment yield restriction provided in this Resolution only in the event
that it shall first obtain an opinion of recognized bond counsel that the proposed investment action will not cause the Bonds to be
classified as arbitrage bonds under Section 148(a) and (b) of the Internal Revenue Code or regulations issued thereunder.
The Issuer covenants that it will proceed with due diligence to spend the proceeds of the Bonds for the purpose set forth
in this Resolution. The Issuer further covenants that it will make no change in the use of the proceeds available for the
construction of facilities or change in the use of any portion of the facilities constructed therefrom by persons other than the
Issuer or the general public unless it has obtained an opinion of bond counsel or a revenue ruling that the proposed project or use
will not be of such character as to cause interest on any of the Bonds not to be exempt from federal income taxes in the hands of
holders other than substantial users of the project, under the provisions of Section 142(a) of the Internal Revenue Code of the
United States, related statutes and regulations.
19. Additional Covenants, Representations and Warranties of the Issuer. The Issuer certifies and covenants with
the purchasers and holders of the Bonds from time to time outstanding that the Issuer through its officers, (a) will make such
further specific covenants, representations and assurances as may be necessary or advisable; (b) comply with all representations,
covenants and assurances contained in the Tax Exemption Certificate, which Tax Exemption Certificate shall constitute a part of
the contract between the Issuer and the owners of the Bonds; (c) consult with bond counsel (as defined in the Tax Exemption
Certificate); (d) pay to the United States, as necessary, such sums of money representing required rebates of excess arbitrage
profits relating to the Bonds; (e) file such forms, statements and supporting documents as may be required and in a timely
manner; and (f) if deemed necessary or advisable by its officers, to employ and pay fiscal agents, financial advisors, attorneys and
other persons to assist the Issuer in such compliance.
20. Severability. If any section, paragraph, or provision of this Resolution shall be held to be invalid or
unenforceable for any reason, the invalidity or unenforceability of such section, paragraph or provision shall not affect any of the
remaining provisions.
21. General Authorization. From and after the date of adoption of this Series Resolution, the officers, employees
and agents of the City are hereby authorized to do all such acts and things and to execute and deliver any and all other documents,
agreements, certificates and instruments relating to the Series 2021C Bonds, the investment of the proceeds thereof and the other
transactions contemplated on the part of the City by this Series Resolution, including, but not limited to, the Tax Exemption
Certificate.
22. Continuing Disclosure. The Issuer hereby covenants and agrees that it will comply with and carry out all of the
provisions of the Continuing Disclosure Certificate, and the provisions of the Continuing Disclosure Certificate are hereby
approved and incorporated by reference as part of this Resolution and made a part hereof and the Mayor and the City Clerk are
hereby authorized to execute and deliver the same at issuance of the Bonds. Notwithstanding any other provision of this
Resolution, failure of the Issuer to comply with the Continuing Disclosure Certificate shall not be considered an event of default
under this Resolution; however, any holder of the Bonds or Beneficial Owner may take such actions as may be necessary and
appropriate, including seeking specific performance by court order, to cause the Issuer to comply with its obligations under the
Continuing Disclosure Certificate. For purposes of this Section, 'Beneficial Owner" means any person which (a) has the power,
directly or indirectly, to vote or 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.
23. Construction. Except to the extent set forth herein, all of the applicable terms, conditions and provisions of the
Master Resolution shall be deemed and construed to apply to the Series 2021 C Bonds and are hereby incorporated by reference
and made a part hereof to the same extent as if fully set forth herein. Except as may otherwise be provided herein, the Master
Resolution shall remain in full force and effect.
24. Repeal of Conflicting Ordinances or Resolutions and Effective Date. All other ordinances, resolutions and
orders, or parts thereof, in conflict with the provisions of this Series Resolution are, to the extent of such conflict, hereby
repealed; and this Series Resolution shall be in effect from and after its adoption.
OFFICIAL BID FORM
To: The City Council of Sale Date: July 19, 2021
Dubuque, Iowa 10:00 A.M. Central Time
RE: $3,720,000* Water Revenue Refunding Bonds, Series 2021C (the "Bonds"), dated August 18, 2021.
For all or none of the above Bonds in accordance with the TERMS OF OFFERING, we will pay you
$ (not less than $3,690,240) 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 2023
% due 2024
% due 2025
% due 2026
% due2027
% due 2028
% due 2029
% due 2030
* 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 202 ] A 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 July , 2021. 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:
Account Manager:
Account Members:
% (Based on dated date of August 18, 2021)
RE
The foregoing offer is hereby accepted by and on behalf of the City Council of the City of Dubuque, Iowa this 19th
day of July 2021.
Attes By: x—x
Tr � SF� �-. GlastSa�
Title: ��;_ [��fl� Title: 0 r _
(To be published between June 29, 2021 and July 14, 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")
before 10:00 A.M., on the 19th day of July, 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:
WATER REVENUE REFUNDING BONDS, SERIES 2021C, in
the amount of not to exceed $3,720,000*, to be dated August 18,
2021* (the "Bonds"). Bid to be received before 10:00 A.M.
C.D.T.
*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 W. 13th St., Dubuque, IA
52001.
Electronic Internet Bidding: Electronic internet bids will be received at the office
of the Director of Finance & Budget at City Hall, 50 W. 13th St., Dubuque, IA
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 the office of the Director of Finance & Budget at City Hall, 50 W.
13th St., Dubuque, IA 52001 (facsimile number: (563) 589-4149) or via email to
the City's Municipal Advisor, Independent Public Advisors, West Des Moines,
Iowa (tionna@ipamuni.com). Electronic facsimile and email bids will be 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 July 19, 2021
at 6:30 P.M. It's possible the meeting 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 Breitfelder, City Clerk, City of
Dubuque, State of Iowa
(End of Notice)
Ahlers & Cooney, P.C.
Attorneys at Law
A H L E R 5 COONEY
100 Court Avenue, Suite 600
A T T 0 R N E Y 5 Des Moines, Iowa 50309-2231
Phone: 515-243-7611
Fax: 515-243-2149
www.ahlerslaw.com
June 23, 2021
VIA EMAIL
Ms. Jenny Larson
Director of Finance & Budget
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001
Kristin B. Cooper
515.246.0330
kcooper@ahlerslaw.com
Re: Dubuque, Iowa - $3,720,000* Water Revenue Refunding Bonds, Series 2021C
Dear Jenny:
I am including with this letter proceedings to cover advertisement for the sale of
$3,720,000* Water Revenue Refunding Bonds, Series 2021C, as well as approving the
Preliminary Official Statement and approving electronic bidding procedures for the sale.
Publication Requirement --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. Based on the schedule received, we understand the sale will
occur on July 19, 2021. 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 attached for use by the newspaper. The
Notice of Bond Sale should be published between June 29, 2021 and July 14, 2021 (dates
inclusive).
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
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.
WISHARD & BAILY - 1888; GUERNSEY & BAR.Y - 1893; BAILY & STIPP - 1901; STIPP, PERRY, BANNISTER & STARZINGER - 1914; BANNISTER, CARPENTER,
AHIERS & COONEY - 1950; AH ERs, COONEY, DORwEIIER, AuBEE, HAYNIE & Smnu - 1974; AH ERs, COONEY, DORwEI ER, HAYNIE, Skm & AusEE, P.C. - 1990
June 23, 2021
Page 2
The Resolution also approves the Preliminary Official Statement and authorizes its
distribution. Please be sure to provide the Preliminary Official Statement to the Council,
department heads, and others who may be able to review. 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 both 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 Bonds.
Please send us an executed copy of the proceedings at your earliest convenience. We
would also appreciate electronic scans. In the near future, we will send proceedings for the
receipt of bids and award of sale. Please let me know if you have any questions.
Very truly yours,
Ahlers & Cooney, P.C.
Kristin Billingsley Cooper
FOR THE FIRM
KBC:seb
Enclosures
cc: Adrienne N. Breitfelder, City Clerk
Trish Gleason, Assistant City Clerk
Tionna Pooler, Independent Public Advisors, LLC
01905706-1\10422-215