Sale of General Obligation Bonds and General Obligatin Urban Renwal BondsMasterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
DATE: July 14, 2010
Dubuque
kittkil
AI- MMdacly
r
2007
SUBJECT: Proceedings to Direct Advertisement for Sale of $4,470,000 General
Obligation Bonds, Series 2010A, $2,675,000 Taxable General Obligation
Urban Renewal Bonds, Series 2010B and $2,825,000 General Obligation
Urban Renewal Bonds, Series 2010C and Approve Electronic Bidding
Procedures
Finance Director Ken TeKippe recommends advertisement for the sale of the
$4,470,000 General Obligation Bonds, Series 2010A, $2,675,000 Taxable General
Obligation Urban Renewal Bonds, Series 2010B and $2,825,000 General Obligation
Urban Renewal bonds, Series 2010C and approval of the electronic bidding procedures.
The Series 2010A bonds will provide funds to pay costs of improvements and
extensions to the municipal sanitary sewer and storm water drainage systems;
equipping the sanitation and road departments; improving the City airport grounds and
facilities; the acquisition of land and other costs associated with the Bee Branch storm
water project; rehabilitation and improvement of City parks; construction, reconstruction
and repair of sidewalks; improvement and installation of street lighting fixtures,
connections and facilities; street improvements, including installation of fiber optic
conduit; and refunding and refinancing of certain outstanding indebtedness of the City,
including the General Obligation Bonds, Series 2002B, dated June 1, 2002.
The Series 2010B and Series 2010C Bonds will provide funds to pay costs of aiding in
the planning, undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal Area, including those costs
associated with the construction of parking improvements and landscape projects within
the Greater Downtown Urban Renewal Area, and the funding of grants, loans and other
forms of financial assistance to private developers to assist in rehabilitation of existing
buildings and construction of housing development projects located throughout the
Greater Downtown Urban Renewal Area.
concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
1cha 2--------
el C. Van Milligen
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director /-
SUBJECT: Proceedings to Direct Advertisement for Sale of $4,470,000 General
Obligation Bonds, Series 2010A, $2,675,000 Taxable General Obligation
Urban Renewal Bonds, Series 2010B and $2,825,000 General Obligation
Urban Renewal Bonds, Series 2010C and Approve Electronic Bidding
Procedures
DATE: July 14, 2010
Dubuque
M-America City
11111!
2007
The purpose of this memorandum is to recommend the advertisement for the sale of the
$4,470,000 General Obligation Bonds, Series 2010A, $2,675,000 Taxable General
Obligation Urban Renewal Bonds, Series 2010B and $2,825,000 General Obligation
Urban Renewal Bonds, Series 2010C, and approve electronic bidding procedures.
The Series 2010A bonds will provide funds to pay costs of improvements and
extensions to the municipal sanitary sewer and storm water drainage systems;
equipping the sanitation and road departments; improving the City airport grounds and
facilities; the acquisition of land and other costs associated with the Bee..Branch storm
water project; rehabilitation and improvement of City parks; construction, reconstruction
and repair of sidewalks; improvement and installation of street lighting fixtures,
connections and facilities; street improvements, including installation of fiber optic
conduit; and refunding and refinancing of certain outstanding indebtedness of the City,
including the General Obligation Bonds, Series 2002B, dated June 1, 2002
The Series 2010B and Series 2010C Bonds will provide funds to pay costs of aiding in
the planning, undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal Area, including those costs
associated with the construction of parking improvements and landscape projects within
the Greater Downtown Urban Renewal Area, and the funding of grants, loans and other
forms of financial assistance to private developers to assist in rehabilitation of existing
buildings and construction of housing development projects located throughout the
Greater Downtown Urban Renewal Area.
The bond sale will be held on August 2, 2010. A letter from attorney William Noth
detailing information on the bond advertisement is enclosed.
A draft copy of the preliminary Official Statement prepared by Public Financial
Management 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.
The requested action step for City Council is to adopt the attached resolution to cover
the advertisement for sale of the above bonds and approve electronic bidding
procedures.
KJT /jmg
Enclosures
cc: Barry Lindahl, City Attorney
Jenny Larson, Budget Director
Jeanne Schneider, City Clerk
WILLIAM J. NOTH
wnoth @ahlerslaw.com
AHLERS
BY OVERNIGHT DELIVERY
Mr. Ken TeKippe
Finance Officer
City of Dubuque
50 West 13th Street
Dubuque, Iowa 52001 -4864
Dear Mr. TeKippe:
COONEY, P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE: 515- 243 -7611
FAX: 515 -243 -2149
W W W.AH LERSLAW.CO M
July 13, 2010
RE: $4,470,000 General Obligation Bonds, Series 2010A
$2,675,000 Taxable General Obligation Urban Renewal Bonds,
Series 2010B
$2,825,000 General Obligation Urban Renewal Bonds, Series 2010C
With this letter I am enclosing suggested proceedings to direct the advertisement
of the above Bonds for sale, and to approve the form of Notice of Bond Sale. Under the
schedule proposed, these proceedings should be considered immediately following the
public hearings on July 19th and adoption of the resolutions taking additional action. The
Notice of Bond Sale assumes that the sale will be set for 11:00 A.M. on August 2, 2010.
The Notice also assumes that the Council will meet at 6:30 P.M. on August 2, 2010 to
award the Bonds to the best bidders. If any of those details need to be revised, please let
me know.
The procedure assumes that your financial consultant has recommended to the
Council 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 & 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
Direct Dial:
(515)246 -0332
July 13, 2010
Page 2
The Notice of Bond Sale must be published at least one time. The sale may be
held at any time, but not less than four days following the date of the last publication. An
extra copy of the notice is enclosed for use by the newspaper.
The resolution also authorizes a preliminary Official Statement to be completed
and distributed in connection with the offering of the Bonds for sale. A draft copy of the
preliminary Official Statement will be delivered to you separately by Public Financial
Management, and should be forwarded to the City Council with the enclosed
proceedings.
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.
As you know, 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. The enclosed resolution authorizes you to complete the draft
document, and thereafter authorizes its distribution in connection with the offering of the
Bonds to the public.
As always, extra copies of the proceedings are enclosed to be filled in as the
originals and certified back to this office, together with publisher's affidavit covering
publication of the Notice of Bond Sale.
July 13, 2010
Page 3
WJN:dc
encl.
If any questions arise, please keep me advised.
cc: Jenny Larson (w /encl.)
Tionna Pooler (w /encl.)
DCORNELU 661471.1 /MSWord \10422.109
Very truly yours,
William J. Noth
NOTICE AND CALL OF PUBLIC MEETING
(This Notice to be posted)
Governmental Body: The City Council of Dubuque, Iowa.
Date of Meeting: July 19, 2010.
Time of Meeting: 6:30 o'clock P.M.
Place of Meeting: Historic Federal Building, 350 West 6th Street, Dubuque,
Iowa.
PUBLIC NOTICE IS HEREBY GIVEN that the above mentioned governmental
body will meet at the date, time and place above set out. The tentative agenda for said
meeting is as follows:
$4,470,000 General Obligation Bonds, Series 2010A
$2,675,000 Taxable General Obligation Urban Renewal Bonds, Series 2010B
$2,825,000 General Obligation Urban Renewal Bonds, Series 2010C
X Resolution directing the advertisement of Bonds for sale and
approving electronic bidding procedures
Such additional matters as are set forth on the additional 13 page(s) attached hereto.
This notice is given at the direction of the Mayor pursuant to Chapter 21, Code of
Iowa, and the local rules of said governmental body.
ty Clerk, Dubuque, Iowa
1
The City Council of Dubuque, Iowa, met in regular session, in the Historic Federal
Building, 350 West 6th Street, Dubuque, Iowa, at 6:30 o'clock P.M., on the above date.
There were present Mayor Roy D. Buol in the chair, and the following named Council
Members:
Karla Braig, Joyce Connors, Ric Jones, Kevin Lynch, David Resnick
Absent: Dirk Voetberg
* * * * * * * * * * * * * * * * **
2
J Jul`
Council Member Connors introduced the following Resolution entitled
"RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF $4,470,000
GENERAL OBLIGATION BONDS, SERIES 2010A, $2,675,000 TAXABLE
GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2010B, AND
$2,825,000 GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2010C,
AND APPROVING ELECTRONIC BIDDING PROCEDURES" and moved its
adoption. Council Member Jones seconded the Resolution to adopt. The roll was called
and the vote was,
AYES: Baig, Buol, Connors, Jones, Lynch, Resnick
NAYS: None
Whereupon, the Mayor declared the resolution duly adopted as follows:
RESOLUTION NO. 278-10
RESOLUTION DIRECTING THE ADVERTISEMENT FOR SALE OF
$4,470,000 GENERAL OBLIGATION BONDS, SERIES 2010A,
$2,675,000 TAXABLE GENERAL OBLIGATION URBAN RENEWAL
BONDS, SERIES 2010B, AND $2,825,000 GENERAL OBLIGATION
URBAN RENEWAL BONDS, SERIES 2010C, AND APPROVING
ELECTRONIC BIDDING PROCEDURES
WHEREAS, the City of Dubuque, Iowa (the "City ") is in need of funds to pay
costs of improvements and extensions to the municipal sanitary sewer and storm water
drainage systems; equipping the sanitation and road departments; improving the City
airport grounds and facilities; the acquisition of land and other costs associated with the
Bee Branch storm water project; rehabilitation and improvement of City parks;
construction, reconstruction and repair of sidewalks; improvement and installation of
street lighting fixtures, connections and facilities; street improvements, including
installation of fiber optic conduit; and refunding and refinancing of certain outstanding
indebtedness of the City, including the General Obligation Bonds, Series 2002B, dated
June 1, 2002, essential corporate purpose projects, and it is deemed necessary and
advisable that the City issue general obligation bonds for said purpose in the amount of
not to exceed $4,575,000 as authorized by Section 384.25 of the City Code of Iowa; and
WHEREAS, pursuant to notice published as required by Section 384.25 this
Council has held a public meeting and hearing upon the proposal to institute proceedings
-3-
for the issuance of the above described Bonds, and all objections, if any, to such Council
action made by any resident or property owner of said City were received and considered
by the Council; and it is the decision of the Council that additional action be taken for the
issuance of said Bonds, and that such action is considered to be in the best interests of
said City and the residents thereof; and
WHEREAS, the City also is in need of funds to pay costs of aiding in the
planning, undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal Area, including those costs
associated with the construction of street, stormwater, sanitary sewer, water, fiber optic,
parking and other public improvements in the Historic Millwork District, and the funding
of grants, loans and other financial assistance to private developers to assist in
rehabilitation of existing buildings and construction of housing development projects in
the Millwork District, and it is deemed necessary and advisable that the City issue
general obligation urban renewal bonds for said purpose to the amount of not to exceed
$2,500,000 as authorized by Sections 403.12 and 384.24(3)(q) of the Code of Iowa; and
WHEREAS, pursuant to notice published as required by Sections 403.12 and
384.24(3)(q) this Council has held a public meeting and hearing upon the proposal to
institute proceedings for the issuance of the above described Bonds, and no petitions were
filed calling for an election thereon and all objections, if any, to such Council action
made by any resident or property owner of said City were received and considered by the
Council; and it is the decision of the Council that additional action be taken for the
issuance of said Bonds, and that such action is considered to be in the best interests of
said City and the residents thereof; and
WHEREAS, the City also is in need of funds to pay costs of aiding in the
planning, undertaking and carrying out of urban renewal project activities under the
authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban
Renewal Plan for the Greater Downtown Urban Renewal Area, including those costs
associated with construction of parking improvements and landscape projects within the
Greater Downtown Urban Renewal Area, and it is deemed necessary and advisable that
the City issue general obligation urban renewal bonds for said purpose to the amount of
not to exceed $3,000,000 as authorized by Sections 403.12 and 384.24(3)(q) of the Code
of Iowa; and
WHEREAS, pursuant to notice published as required by Sections 403.12 and
384.24(3)(q) this Council has held a public meeting and hearing upon the proposal to
institute proceedings for the issuance of the above described Bonds, and no petitions were
filed calling for an election thereon and all objections, if any, to such Council action
-4-
made by any resident or property owner of said City were received and considered by the
Council; and it is the decision of the Council that additional action be taken for the
issuance of said Bonds, and that such action is considered to be in the best interests of
said City and the residents thereof; and
WHEREAS, pursuant to Section 384.28 of the Code of Iowa, it is appropriate to
offer the foregoing Bonds for sale in three separate series, in the aggregate principal
amounts as hereinafter described; and
WHEREAS, a preliminary form of Official Statement has been prepared for the
purpose of offering the Bonds for sale to the public; and
WHEREAS, it is appropriate that the form of the preliminary Official Statement
be approved and deemed final and, upon completion of the same, that the preliminary
Official Statement be used in connection with the offering of the Bonds for sale to the
public; and
WHEREAS, the Council has received information from its Financial Consultant
recommending that sealed and electronic facsimile and internet bidding be authorized for
the sale of the Bonds, and that such procedures will maintain the integrity and security of
the competitive bidding process and facilitate the delivery of bids by interested parties;
and
WHEREAS, the Council deems it in the best interests of the City and the residents
thereof to receive bids to purchase such Bonds by means of sealed and electronic
facsimile and internet communication.
NOW, THEREFORE, BE IT RESOLVED BY THE CITY COUNCIL OF THE
CITY OF DUBUQUE, IOWA:
Section 1. That the receipt of electronic bids by facsimile machine and through
the PARITY competitive bidding system described in the Notice of Sale 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 of the Bonds hereinafter described at public sale.
5
Section 2. 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 Finance Director, upon the advice of bond counsel and
the City's financial consultant, shall determine to be appropriate, and is authorized to be
distributed thereafter in connection with the offering of the Bonds for sale.
Section 3. That the City Clerk be and is hereby authorized and directed to publish
notice of sale of said 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. Said notice is given pursuant to Chapter 75 of the Code of Iowa, and shall state
that this Council, on the 2nd day of August, 2010, at 6:30 o'clock P.M., will hold a
meeting to receive and act upon bids for said Bonds; said notice to be in substantially the
following form:
6
NOTICE OF BOND SALE
Time and Place of Sealed Bids: Sealed bids for the sale of Bonds of the City of
Dubuque, Iowa, will be received at the office of the Finance Director, City Hall, 50 West
13th Street, in the City of Dubuque, Iowa (the "Issuer ") at 11:00 o'clock A.M., on the 2nd
day of August, 2010. 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.
Sale and Award: The sale and award of the Bonds will be held at the Historic
Federal Building, 350 West 6th Street, Dubuque, Iowa, at a meeting of the City Council
on the above date at 6:30 o'clock P.M.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 2010A, in the
amount of $4,470,000, to be dated the date of delivery.
TAXABLE GENERAL OBLIGATION URBAN RENEWAL
BONDS, SERIES 2010B, in the amount of $2,675,000, to be
dated the date of delivery.
GENERAL OBLIGATION URBAN RENEWAL BONDS,
SERIES 2010C, in the amount of $2,825,000, to be dated the
date of delivery.
(together, the "Bonds ")
Adjustment of Principal Amounts. The Issuer reserves the right to decrease the
aggregate principal amount of each series of the Bonds at the time of sale, as
described in the Terms of Offering. Any 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.
Manner of Bidding: Open bids will not be received. Bids for each series of the
Bonds will be received by any of the following methods:
■ Sealed Bidding: Sealed bids may be submitted and will be received at the
office of the Finance Director, City Hall, Dubuque, Iowa.
7
• Electronic Internet Bidding: Electronic internet bids will be received at the
office of the Finance Director, City Hall, Dubuque, Iowa. The bids must be
submitted through the PARITY' competitive bidding system.
• Electronic Facsimile Bidding: Electronic facsimile bids will be received at
the office of the Finance Director, Dubuque, Iowa (facsimile number:
563/589 -0890 or 563/690- 6689). Electronic facsimile bids will be sealed
and treated as sealed bids.
Consideration of Bids: After the time for receipt of bids has passed, the close of
sealed bids will be announced. Sealed bids will then be publicly opened and announced.
Finally, electronic internet bids will be accessed and announced.
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 for each series, which is incorporated by reference as a part of this
notice. The Official Statement may be obtained by request addressed to the City Clerk,
50 W. 13th Street, Dubuque, Iowa 52001 (telephone: 563/589 -4100) or the financial
advisor to the City, Public Financial Management, Inc., 2600 Grand Avenue, Suite 214,
Des Moines, Iowa 50312 (telephone: 515/243- 2600).
Terms of Offering: All bids shall be in conformity with and the sale shall be in
accord with the Terms of Offering as set forth in the Official Statement.
Legal Opinion: Said 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, Iowa.
City Clerk of the City of Dubuque, Iowa
(End of Notice)
-8-
2010.
ATTEST:
PASSED AND APPROVED this 19th day of July
Mayor
9
STATE OF IOWA
COUNTY OF DUBUQUE
I, the undersigned City Clerk of Dubuque, Iowa, do hereby certify that attached is
a true and complete copy of the portion of the corporate records of said Municipality
showing proceedings of the Council, and the same is a true and complete copy of the
action taken by said Council with respect to said 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 (a copy of the face sheet of said agenda
being attached hereto) 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 said
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 said 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 said Municipality hereto affixed this 20 day
of July, 2010.
SEAL
DCORNELL/ 661455.1 /MSWord \10422.109
CERTIFICATE
) SS
ity Clerk, Dubuque, Iowa
- 10-
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PRELIMINARY OFFICIAL STATEMENT DATED JULY 26, 2010
New and Refunding Issues Ratings: Application Made
Assuming compliance with certain covenants, in the opinion of Ahlers & Cooney, P C, Bond Counsel, under present law, interest on the 2010A and Series 2010C Bonds will be excluded from
gross income for federal income tax purpose, and interest on the Series 2010A and Series 20100 Bonds is not an item oftax preference for purpose ofthe federal altemctive mirazmum tax imposed on individuals
and corporations under the Internal Revenue Code of 1986 (the `Code) Irtereston the Series 20104 Bonds MIL be taken into account determining adjusted current earnings for the purpose ofcomputing
the alternative minimum tax imposed on corporations (as defined for federal income tax purposes), but such interest will NOT be taken into account for such purposes in the case of the Senes
2010C Bonds The Series 2010A Bonds and Series 20100 Bonds will NOT be designated as "qualified tax- exempt obligations" for purposes of Section 265(b)(3) of the Code Interest on the
Series 2010B Bonds paid to the owners thereof is includible in gross income for purposes of present Federal income taxation For certain holders of the 20100 Bonds, subject to applicable
limitations, Interest on the2010C Bonds will be exempt from the State of Iowa income taxes imposed by Division II (Personal Net Income Tax) and Division III (Business Tax on
Corporations) of Chapter 422 of the Code of Iowa See "TAX MATTERS" and "TAXABILITY OF INTEREST" herein for a more detailed discussion
CITY OF DUBUQUE, IOWA
$4,470,000* General Obligation Bonds, Series 2010A
$2,675,000* Taxable General Obligation Urban Renewal Bonds, Series 2010B
$2,825,000* General Obligation Urban Renewal Bonds, Series 2010C
BIDS RECEIVED Monday, August 2, 2010, 11:00 o'clock A M , Central Time
AWARD Monday, August 2, 2010, 6 30 o'clock P.M., Central Time
Dated Date of Delivery (August 30, 2010) Principal Due: June 1 as shown inside front cover
The $4,470,000* General Obligation Bonds, Senes 2010A (the "Series 2010A Bonds "), the $2,675,000* Taxable General Obligation Urban
Renewal Bonds, Senes 2010B (the "Senes 2010B Bonds ") and the $2,825,000* General Obligation Urban Renewal Bonds, Senes 2010C (the
"Senes 2010C Bonds ") (collectively the "Bonds ") are being issued pursuant to Division III of Chapter 384 and Chapter 403 of the Code of
Iowa and resolutions to be adopted by the City Council of the City of Dubuque, Iowa (the "City ") The Senes 2010A Bonds are being issued
to provide funds to pay costs of improvements and extensions to the municipal sanitary "sewer and storm water drainage systems, equipping
the sanitation and road departments, improving the a4; 6 >;`q: grounds and facilities; the acquisition of land and other costs associated with
the Bee Branch storm water project, rehabilitation *dr ement of City parks, construction, reconstruction and repair of sidewalks,
improvement and installation of street lighting fixtures, t$1 a t and facilities ;. A eet improvements, including installation of fiber optic
conduit, and to current refund $690,000 of the outstandi ` a';; :enei l;';'." , "...... ation Bond Bond:in:Imes 2002B, dated June 1, 2002 (the "Senes 2002B
Bonds) The Senes 2010B Bonds and the Senes 2010C $ are bein ';issued t r Mde funds to pay costs of aiding in the lanr n
g P `" P Y g , P g
undertaking and carrying out of urban renewal project activiti der the autfigi of Chaptie1403 of the Code of Iowa and the Amended and
Restated Urban Renewal Plan for the Greater Downtown Uri , • ene'ral Ai i' ' Wing tose costs associated with the construction of
parking improvements and landscLpe projects within the Greater DA own Urban al Area, and the funding of grants, loans and other
financial assistance to pnvate developers to assist in rehabilitatio >::;_: >existing buildings and construction of housing development projects
throughout the Greater Downtown Urban Renewal Area The Bon' '''<'i e general obligations of the City for which the City will pledge its
power to levy direct ad valorem taxes to the repayment of the Bonds
The Bonds will be issued as fully registered Bonds without coupons an, hen issued, will be registered in the name of Cede & Co , as
nominee 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
representing their interest in the Bonds purchased Principal and interest on the Bonds will be paid to DTC by Wells Fargo Bank, N A as
Registrar and Paying Agent (the "Registrar "), which will in turn remit such pnncipal and interest to its participants for subsequent
disbursement to the beneficial owners of the Bonds as described herein Interest and pnncipal shall be paid to the registered holder of a bond
as shown on the records of ownership maintained by the registrar as of the fifteenth day preceding such interest payment date (the "Record
Date ")
SERIES 2010A BONDS
MINIMUM BID: $4,425,300
GOOD FAITH
DEPOSIT: Required of Purchaser Only
TAX MATTERS: Federal Tax Exempt
State Taxable
THE BONDS WILL MATURE AS LISTED ON THE INSIDE FRONT COVER
SERIES 2010B BONDS SERIES 2010C BONDS
$2,648,250 $2,796,750
Required of Purchaser Only
Federal Taxable
State Taxable
Required of Purchaser Only
Federal Tax Exempt
State Tax Exempt
The Bonds are offered, subject to pnor sale, withdrawal or modification, when, as, and if issued subject to the legal opinion of Ahlers &
Cooney, P C , Bond Counsel, of Des Moines, Iowa, to be furnished upon delivery of the Bonds It is expected that the Bonds will be available
for delivery on or about August 30, 2010 This Preliminary Official Statement will be further supplemented by offenng pnces, interest rates,
aggregate pnncipal amount, pnncipal amount per maturity, anticipated delivery date, and underwnter, together with any other information
required by law, and shall constitute a "Final Official Statement" of the City with respect to the Bonds, as defined in Rule 15c2 -12
MATURITY:
MATURITY:
MATURITY:
$4,470,000* General Obligation Bonds, Series 2010A
SERIES 2010A BONDS
June 1 as follows
Year Amount* Year
2011 $55,000 2021
2012 205,000 2022
2013 215,000 2023
2014 215,000 2024
2015 225,000 2025 48.
2016 225,000 2026
2017 230,000 20274
2018 240,000
2019 250,000
2020 255,000
$2,675,000* Taxable General Obligation Urban Renewal
SERIES 2010B BONDS
June 1 as follows
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
DATED: Date of Delivery (August 30, 2010)
CITY OF DUBUQUE, IOWA
ount*
00
0
100
105,00Q
110,00011
115,000 I 029
125,000 2030
2021 130,000
S28254000* eneral Obligation Urbid*enewal Bonds, Series 2010C
Yars
2()22W
2024
2025
2
::.,.
Amount*
$265,000
200,000
205,000
215,000
220,000
230,000
240,000
250,000
260,000
270,000
Amount*
$140,000
145,000
155,000
165,000
180,000
190,000
200,000
215,000
230,000
SERIES12010C BONDS i::•••
June 1 as follows
Year Amount* Year Amount*
2012 $115,000 2022 $150,000
2013 115,000 2023 155,000
2014 115,000 2024 160,000
--, 2015 120,000 2025 165,000
2016 i 120,000 2026 170,000
2017 2027 180,000
2018 . '"'t::: 130,000 2028 185,000
2019 135,000 2029 195,000
2020 140,000 2030 205,000
2021 145,000
11 ds, Series 2010B
INTEREST: June 1, 2011 and semiannually thereafter
REDEMPTION Bonds due on and after June 1, 2018 will be subject to call for pnor redemption on June 1, 2017 or on
any date thereafter upon terms of par plus accrued interest to date of call
*PRINCIPAL
ADJUSTMENT: The City reserves the right to increase or decrease the aggregate principal amount of each senes of the Bonds
Such change will be in increments of $5,000 and may be made in any of the matuntres The purchase pnces of
the issues will be adjusted proportionately to reflect any change in issue sizes
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.
Preliminary Official Statement: This Preliminary 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 NOTICE OF BOND SALE and 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 Preliminary 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 Public
Financial Management, Inc. at least two business days prior to the sale. Requests for additional information or
corrections in the Preliminary 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 Preliminary 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 ol:' ormation required by law and the identity of the underwriter (the
"Syndicate Manager ") and syndicate memb' "`; "' "' "'.. of the Final Official Statement will be delivered to the
Syndicate Manager within seven business days ftionOW h bid acceptance.
REPRESENTATIONS
No dealer, broker, salespers other person has beers "'' €:'!' "!" d by i1, ;,_ to give any information or to make any
representations, other than tho e ontained in the Prelimin. Official Statement. This Preliminary Official Statement
does not constitute any offer to sell or the solicitation of a''';': er to buy, nor shall there be any sale of the Bonds by
any person, in any jurisdiction in which it is unlawful for s'" ;'';;; to make such offer, solicitation or sale. The
information, estimates and expressions of opinion herein are s ect to change without notice and neither the delivery
of this Preliminary Official Statement nor any sale 1164e 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 Preliminary Official
Statement is submitted in connection with the sole' of the securities referred to herein and may not be reproduced or
used, in whole or in part, for any other purpose.
This Preliminary Official Statement and any addenda thereto were prepared relying on information of the City and
other sources, which are believed to be reliable.
Bond Counsel has not participated in the preparation of this Preliminary Official Statement and is not expressing any
opinion as to the completeness or accuracy of the information contained therein.
Compensation of Public Financial Management, Inc. (the "Financial Advisor ") payable entirely by the City is
contingent upon the sale of the issue.
NOTICE OF BOND SALE i
TERMS OF OFFERING iii
SCHEDULES OF BOND YEARS viii
INTRODUCTION
AUTHORITY AND PURPOSE
PAYMENT OF AND SECURITY FOR THE BONDS
BOOK - ENTRY -ONLY SYSTEM
FUTURE FINANCING
LITIGATION
DEBT PAYMENT HISTORY
LEGALITY
TAX MATTERS - Series 2010A and Series 2010C Bonds
TAXABILITY OF INTEREST - Series 2010B Bonds
RELATED TAX MATTERS
RATING
FINANCIAL ADVISOR
CONTINUING DISCLOSURE
CERTIFICATION
CITY INDEBTEDNESS
DEBT LIMIT
DIRECT DEBT
OTHER DEBT
INDIRECT G 1 . ATI
DEBT RAT
LEVIES rAX COLLEC
TAX RATE , Y LIMITS
FUNDS ON HA ash and Investmer
THE CITY
CITY GOVERNMEN
EMPLOYEES, PENSIO
INSURANCE
TABLE OF CONTENTS
;30, 2010)
CITY PROPERTY VALUES
IOWA PROPERTY VALUATIONS
1/1/2009 VALUATIONS (Taxes Payable July 1, 2010 to June 30, 2011)
2009 GROSS TAXABLE VALUATION BY CLASS OF PROPERTY
TREND OF VALUATIONS, LAR ER TAXPAYERS .
LEGISLATION :444
ER PO ; MPLOYMENT BENEFITS, UNION CONTRACTS
GENERAL INFORMATION 23
LOCATION AND TRANSPORTAT''ION 23
LARGER EMPLOYERS 23
BUILDING PERMITS 24
U S CENSUS DATA, UNEMPLOYMENT RATES 24
EDUCATION 24
EFFECTIVE BUYING INCOME 25
FINANCIAL SERVICES 25
FINANCIAL STATEMENTS 25
APPENDIX A - FORMS OF LEGAL OPINIONS
APPENDIX B - JUNE 30, 2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C - FORMS OF CONTINUING DISCLOSURE CERTIFICATES
OFFICIAL BID FORMS
1
1
2
3
5
5
6
6
6
8
10
11
11
11
11
12
12
12
12
13
14
15
15
15
18
19
19
19
20
20
21
21
21
22
Roy Buol
Ric Jones
David Resnick
Kevin Lynch
Karla Braig
Joyce Connors
Dirk Voetberg
1) Roy Buol served on the City Council as Cpuneil Member — Ward T
his election as Mayor in 2005.
City of Dubuque, Iowa
Mayor & City Council
Mayor
Council Member — At Large
Council Member — At Large
Council Member — Ward One
Council Member — Ward Two
Council Member — Ward Three
Council Member — W ard Four
Administr::::
.................
Michael Van Milligen, City lager
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Ken TeKippe, Finance Director
Jenny
Larson Budget Director
anne Schneider, City Clerk
O
Barry A. Lindahl
ubuque, Iowa
Bond Counsel
Ahlers & Cooney, PC
Des Moines, Iowa
Financial Advisor
Public Financial Management, Inc.
Des Moines, Iowa
Initial Term
1994 1)
20
5
05
05
Current Term Expires
2013
2013
2011
2013
2011
2013
2011
m 1994 -2005 prior to
Time and Place of Sealed Bids: Sealed bids for the sale of Bonds of the City of Dubuque, Iowa, will be received at
the office of the Finance Director, City Hall, 50 West 13th Street, in the City of Dubuque, Iowa (the "Issuer ") at 11:00
o'clock A.M., on the 2nd day of August, 2010. 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.
Sale and Award: The sale and award of the Bonds will be held at the Historic Federal Building, 350 West 6th Street,
Dubuque, Iowa, at a meeting of the City Council on the above date at 6:30 o'clock P.M.
The Bonds: The Bonds to be offered are the following:
GENERAL OBLIGATION BONDS, SERIES 201 ;te amount of $4,470,000,
to be dated the date of delivery.
TAXABLE GENERAL OBLIGATION Ul:..:,; ,_.., RENEWAL S, SERIES
2010B, in the amount of $2,675,000, to d the date of deli
GENERAL OBLIGATION URBAN RE E* BON S, SERIES 2 in the
amount of $2,825,000, to be dated the date of''=''e
(together, the "Bonds ")
Adjustment of Principal Amounts.
series of the Bonds at the time of
of $5,000, and may be made i
any change in issue size.
Manner of Bidding: Open bids ` �' it
following methods :,
El
Direc
bidding
Electronic Fac
Director, Dubuq
bids will be sealed a
NOTICE OF BOND SALE
The Issuer reserves the right to dec °' ; ; the aggregate principal amount of each
as described in the Terms of Offering Any such change will be in increments
maturities. The purchase price will be adjusted proportionately to reflect
wed. Bids for each series of the Bonds will be received by any of the
sled ay be su' ° °`` ":; and will be received at the office of the Finance
bug tava.
: Elecic internet bids will be received at the office of the Finance
e, Iowa." The bids must be submitted through the PARITY competitive
: Electronic facsimile bids will be received at the office of the Finance
(facsimile number: 563/589 -0890 or 563/690- 6689). Electronic facsimile
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.
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 for each series, which is incorporated by
reference as a part of this notice. The Official Statement may be obtained by request addressed to the City Clerk, 50
W. 13th Street, Dubuque, Iowa 52001 (telephone: 563/589 -4100) or the financial advisor to the City, Public Financial
Management, Inc., 2600 Grand Avenue, Suite 214, Des Moines, Iowa 50312 (telephone: 515/243- 2600).
i
Terms of Offering: All bids shall be in conformity with and the sale shall be in accord with the Tenns of Offering as
set forth in the Official Statement.
Legal Opinion: Said 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 way _ y irregularities as deemed to be in the
best interests of the public.
By order of the City Council of the City of Dubuque, Io
City Cl of the City of Dubuque,
ii
TERMS OF OFFERING
CITY OF DUBUQUE, IOWA
In addition to the provisions of the official NOTICE OF BOND SALE, this section sets forth the description of certain
of the terms of the Series 2010A Bonds, Series 2010B Bonds and Series 2010C Bonds (collectively "the Bonds ") as
well as the TERMS OF OFFERING with which all bidders and bid proposals are required to comply, as follows:
DETAILS OF THE SERIES 2010A BONDS
GENERAL OBLIGATION BONDS, SERIES 2010A (the "Series q ,, Bonds ") in the principal amount of
$4,470,000* to be dated the date of delivery (August 30, 2010) i tae _ omination of $5,000 or multiples thereof,
and to mature June 1 as follows:
Year Amount* Year Amount*
2011 $55,000 2021 $265,000
2012 205,000 2022 200,000
2013 215,000 2023 5,000
2014 215,000 202 ,, 000
2015 225,000 2035;;: >>' 2
2016 225,000 OM 230,
2017 230,000 .027 240,000
2018 240,000 250,000
2019 250,000 2;;; 260,000
2020 >< > 255,000 2030 < ::: > > 270,000
Preh trJ'; "`;; The City reserves the to increase or decrease the aggregate
pnncip, s bunt of the ' > „ 2010A Bonds. Such change will be in increments of $5,000 and maybe
made in of the ma i s The purchase price will be adjusted proportionately to reflect any
change in isze
TAXABLE RAL OBLI •N Lam:;: N RENEW !BONDS, SERIES 2010B (the "Series 2010B Bonds "),
in the principa aunt of $2,67 , * to b'ated the date of delivery (August 30, 2010) in the denomination of
$5,000 or multipl eof and tom. * June 1> ;;f ollows:
mount ` Year Amount*
90,000 2022 $140,000
90,000 2023 145,000
201 % 95,000 2024 155,000
2015 95,000 2025 165,000
2016 100,000 2026 180,000
2017 105,000 2027 190,000
2018 110,000 2028 200,000
2019 115,000 2029 215,000
2020 125,000 2030 230,000
2021 130,000
*Preliminary, subject to change The City reserves the nght to increase or decrease the aggregate
principal amount of the Senes 2010B Bonds Such change will be in increments of $5,000 and maybe
made in any of the matuntres The purchase price will be adjusted proportionately to reflect any
change in issue size
GENERAL OBLIGATION URBAN RENEWAL BONDS, SERIES 2010C (the "Series 2010C Bonds ") in the
principal amount of $2,825,000* to be dated the date of delivery (August 30, 2010) in the denomination of $5,000 or
.2010B BONDS
multiples thereof, to mature June 1 as follows:
A Good Faith
2010B Bonds an
Bonds. The lowest
City in the form of eith
or (ii) a wire transfer as in
sale of the Bonds. If not so
Year Amount*
2012 $115,000
2013 115,000
2014 115,000
2015 120,000
2016 120,000
2017 125,000
2018 130,000
2019 135,000
2020 140,000
2021 145,000
*Prehnunary, subject to change The City rese ngli crease or decrease the aggregate
pnncipal amount of the Senes 2010C Bonds Su c _e will b rements of $5,000 and may be
made in any of the maturities The purcly ice will be adjus ° i$a to reflect any
change in issue size
it (the "Depo
250 for the
for each se
cashier's c
d by th
d,
iv
Interest on the Bonds will be payable on June 1, 2011 and *WOO y on the first da December and June
thereafter. Interest and principal shall be paid to the registered holt;f a bond as shown on the records of ownership
maintained by the registrar as of the fifteenth day preceding such inte; date (the "Record Date "). Interest
will be computed on the basis of a 360 -day year of twelve 30':,$,,,y monthtd will be rounded pursuant to rules of the
MSRB.
Year
2022
2023
2024
2025
2026
2027
2028
20
QPTIONAL REDEMPTION
Amount*
$150,000
155,000
160,000
165,000
170,000
180,000
185,000
195,000
205,000
Bonds due on and after June 1•J: 2 18 will - subject to call for prior redemption on June 1, 2017 or on any day
thereafter upon terms . ar plus a " d i t ; date of call.
GOO ::::: 'OSIT
n the 0 nt of $44,700 for the Series 2010A Bonds, $26,750 for the Series
2010!b;;tnds is required of the lowest bidder only for each series of the t.
f the B `'cis is required to submit such Deposit payable to the order of the
provided to the City or its Financial Advisor prior to the opening of bids
's Financial Advisor not later than 1:00 P.M. Central Time on the day of
d of the lowest bidder may be rejected and the City may direct the second
ereafter may award the sale of the Bonds to the same. No interest on a
dder(s) (the "Purchaser(s) "). Deposits will be applied to the purchase price of
lowest bidder to submit a Dep
Deposit will accrue to the success
the respective series of Bonds. In the event a Purchaser fails to honor its accepted bid proposal, the Deposit 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 $4,425,300 for the Series 2010A
Bonds, $2,648,250 for the Series 2010B Bonds, and $2,796,750 for the Series 2010C Bonds plus accrued interest, and
shall specify the rate or rates of interest in conformity to the limitations set forth under "RATES OF INTEREST" on
the following page. Bids must be submitted on or in substantial compliance with the OFFICIAL BID FORMS
provided by the City.
Each series of Bonds will be awarded to the bidder offering the lowest interest rate to be determined on a true interest
cost ( "TIC ") basis. The TIC shall be determined by the "present value method ", i.e., by ascertaining the semiannual
rate, compounded semi - annually, necessary to discount 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 Financial Advisor based on the TERMS OF OFFERING
and all amendments, and on the bids as submitted. The Financial 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 INTE
Considering each series separately, the rates of interest sp�,,�c,, in th der's proposal must conform to the
following limitations:
1. All bonds of each annual maturity must bear the'e interest rate.
2. Rates of interest bid must be in multiples of one -eig ;; or one -t ypptieth of one nt.
3. Each rate of interest specified for bonds of any ann'„ matrii" shall not
specified for any earlier maturity. p y ty 1 :
The Bonds will be issued by me
made to the public. The Boi
aggregate principal amount
nominee of The Depository 'T
of the Bonds. Individual purci
thereof of a single thro
Principal and in
of principal
interest pay
nominees of be
the bond certificat
rest pa
to beneficia
',al owners.
DTC.
BOOK - ENTRY -ONLY SYSTEM
f a book - entry -only system with no >p distribution of bond certificates
: issued in `fully registered form and one bond certificate, representing the
Boric' " turing in each year will be registered in the name of Cede & Co. as
Compait ''DTC "), New York, New York, which will act as securities depository
of the;11 nds may be made in the principal amount of $5,000 or any multiple
book "" "';;;':;:' made on the books and records of DTC and its artici ants.
p p
e 'G or its nominee as registered owner of the Bonds. Transfer
t
by t c : gistra
to pattio pants of I)
ers barticipants
chas
be the responsibility of DTC; transfer of principal and
be the responsibility of such participants and other
s a condition of delivery of the Bonds, will be required to deposit
INSURANCE AT PURCHASER'S OPTION
RECEIPT OF BIDS
be than a rate of interest
v
If the Bonds qualify for issua . a $ icy of municipal bond insurance or commitment therefore at the option of
the bidder, the purchase of any ° rance policy or the issuance of any such commitment shall be at the sole
option and expense of the Purchase . 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).
No bid will be accepted after the time specified in the NOTICE OF BOND SALE. 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 office of the Finance Director, Dubuque,
Iowa.
Internet Bidding: Internet bids must be submitted through the PARITY competitive bidding system (the "Internet
Bid System "). Information about the Internet Bid System may be obtained by calling (212) 404 -8102.
Each bidder shall be solely responsible for making necessary arrangements to access the Internet Bid System for
purposes of submitting its Internet bid in a timely manner and in compliance with the requirements of the TERMS OF
OFFERING. 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
NOTICE OF BOND SALE, TERMS OF OFFERING and OFFICIAL I FORMS shall control in the event of
conflict with information provided by the Internet Bid System.
Electronic Facsimile Biddincr: Electronic facsimile bids will b
Dubuque, Iowa (facsimile number: 563/589 -0890 or 563/690 -
treated as sealed bids. Transmission received after the deadln be red x
facsimile transmission bear full responsibility for the transrin of such bi
malfunction or mistake made by any person, or as a re " » > : >the use of the el
means used to deliver or complete a bid. The use of s; or means is
bidder who shall be bound by the terms of the bid as received. Neither the City nor its
the inability f the bidder to reach the above named fax num r; iior 1 Be time of sal
tY p
receipt shall be the time recorded by the facs erator receivIngthop Bids.
The Bonds will be delivered to t
DTC, against full payment in
within forty-five days after
reason except failure of perfo
interest in and liability for the
Purchaser(s) five days n2 �
otherwise, rese t thei
purchase.
The Purchaser(s) wil
offering price of each
organizations acting in the
(not less than 10% of each ma
price for that maturity determine
to the public; and (iii) that the initia
chaser(s) via FAST delivery with the'';strar holding the Bonds on behalf of
available cash or federal filnds. The Bonds are expected to be delivered
ale Sho :d delivery be delayed bey days from the date of sale for any
nce by th, the Purchaser(s) may withdraw their bid and thereafter their
s will, c ase. When the Bonds are ready for delivery, the City will give the
ery date and the City will expect payment in full on that date;
n to d +
DELIVERY
ON FROM PURCHASER
at the office of the Finance Director,
onic facsimile bids will be sealed and
Bidders electing to submit bids via
City shall not be responsible for
ectr acsimile facilities or any other
a sole risk of the prospective
will assume liability for
ified above. Time of
8 e e that the Purchaser(s) failed to comply with the offer of
to the 'City immediately after the opening of bids: (i) the initial public
s (not including sales to bond houses and brokers or similar persons or
riters or wholesalers) at which price a substantial amount of the Bonds
old to the public; or (ii) if less than 10% of any maturity has been sold, the
e time of the sale based upon the reasonably expected initial offering price
ublic offering price does not exceed their fair market value of the Bonds on the
sale date. The Purchaser(s) will also be required to provide a certificate at closing confirming the information
required by this paragraph.
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 which
vi
each series of the Bonds are awarded up to 40 copies for the Series 2010A Bonds and up to 30 copies each for the
Series 2010B and Series 2010C Bonds 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.
In order to assist bidders in complying with paragraph (b)(5) of the e e City will undertake, pursuant to the
resolution for the Bonds and a Continuing Disclosure Certificate, to de certain annual financial information and
notices of certain events. The details of this undertaking are se PENDIX C of this Preliminary Official
Statement. The Continuing Disclosure Certificate will be deli e at clo and any failure on the part of City to
deliver the same shall relieve the successful bidder of its ,cation to purc < e e Bonds. In accordance with the
reporting requirements of SEC Rule 15c2- 12(f)(3), the:::111er has complied in aterial respects with previous
undertakings entered into under the Rule.
CUSIP
It is anticipated that CUSIP numbers will be printed on the Bonds'ae Purchaser(s) must agree in the bid proposal
to pay the cost thereof. In no event will the City, Bond Counsel or Fiial Advisor be responsible for the review or
express any opinion that the CUSIP numbers are correct. Incorrect CU'" :::;:''members on said Bonds shall not be cause
for the Purchaser(s) to refuse to accepLdelivery of said Bonds.
CONTINUING DISCLOSURE
vii
RS
BY ORDER
THE CITY COUNCIL
Jeanne Schneider, City Clerk
City of Dubuque, Iowa
50 West 13 Street
Dubuque, Iowa 52001
Bonds Dated: August 30, 2010
Interest Due: June 1, 2011 and each December 1 and June 1 to maturity
Principal Due: June 1, 2011 -2030
2011
2012
2013
2014
2015
2016
2017
2018
201
*Preliminary, subject to change
Year Principal *
SCHEDULE OF BOND YEARS
$4,470,000*
CITY OF DUBUQUE, IOWA
General Obligation Bonds, Series 2010A
$5
20.
215,0
215,00
225,000
5 000
, ; ,000
000
55,0
5,000
.::.: 0
2051
20 : 215,000
2025 20,000
2026 0,000
2027 40,000
2028 250,000
2029 260,000
2030 270,000
Average Maturity (dated date): 10.864 Years
viii
Cumulative
Bond Years " ::. Bond Years
: 41.40
359.32 400.72
59:1.85 992.57
800A 1,799.42
1,069 : ,. 2,868.79
38 4,163.17
1 .14 5,716.31
1,860.67 7,576.97
2,188.19 9,765.17
2,486.96 12,252.13
2,849.49 15,101.61
2,350.56 17,452.17
2,614.32 20,066.49
2,956.85 23,023.33
3,245.61 26,268.94
3,623.14 29,892.08
4,020.67 33,912.75
4,438.19 38,350.94
4,875.72 43,226.67
5,333.25 48,559.92
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
20
20
2028
2029
2030
*Preliminary, subject to change
SCHEDULE OF BOND YEARS
$2,675,000*
CITY OF DUBUQUE, IOWA
Taxable General Obligation Urban Renewal Bonds, Series 2010B
Bonds Dated: August 30, 2010
Interest Due: June 1, 2011 and each December 1 and Jun' "aturity
Principal Due: June 1, 2012 -2030
Year Principal *
$90,000
90,000
95,000
95,000
100,000
105,000:x;';;;:
110,000 "<
45,000
000
eke
45,00(t' < <<
;; ; ,000
G� .3!;':.:0
180,1
190,000
15,000
30,000
Average Maturity (date +te): 12.403 Years
ix
Cumulative
Bond Year Bond Years
157.75 157.75
24175 405.50
356.51 762.01
451.51 1,213.53
57S 28 1,788.81
709.x 2,497.85
852. - 3,350.65
1,2 57 4,357.22
.10 5,576.32
1,397.86 6,974.18
1,645.39 8,619.57
1,849.15 10,468.72
2,131.68 12,600.40
Z434.21 15,034.61
Z835.50 17,870.11
3,183.03 21,053.14
3,550.56 24,603.69
4,031.85 28,635.54
4,543.14 33,178.68
Year
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
20
20
2028
2029
2030
Average Maturity (date
*Preliminary, subject to change
SCHEDULE OF BOND YEARS
$2,825,000*
CITY OF DUBUQUE, IOWA
General Obligation Urban Renewal Bonds, Series 2010C
Bonds Dated: August 30, 2010
Interest Due: June 1, 2011 and each December 1 and Junk. aturity
Principal Due: June 1, 2012 -2030
Principal *
$115,000
115,000
115,000
120,000
120,000
125,000`
130,000
5,000
:.:. >.. 000
000
55,00 < <<;;
7 000
::::,
170,1
180,000
85,000
5,000
05,000
te):
x
Bond Year
11.762 Years
Cumulative
Bond Years
201.57 201.57
57 518.14
431.57 949.71
70.33 1,520.04
33 2,210.38
8A ::. 3,054.47
007.8 4,062.33
.63 5,243.96
1 ,365.39 6,609.35
1,559.15 8,168.50
1,762.92 9,931.42
1,976.68 11,908.10
2,200.44 14,108.54
Z434.21 16,542.75
Z677.97 19,220.72
3,015.50 22,236.22
3,284.26 25,520.49
3,656.79 29,177.28
4,049.32 33,226.60
AUTHORITY AND PURPOSE
OFFICIAL STATEMENT
CITY OF DUBUQUE, IOWA
$4,470,000* General Obligation Bonds, Series 2010A
$2,675,000* Taxable General Obligation Urban Renewal Bonds, Series 2010B
$2,825,000* General Obligation Urban Renewal Bonds, Series 2010C
INTRODUCTION
This Preliminary Official Statement contains information relating to the City of Dubuque, Iowa (the "City ") and its
issuance of $4,470,000* General Obligation Bonds, Series 2010A (the "Series 2010A Bonds "), $2,675,000* Taxable
General Obligation Urban Renewal Bonds, Series 2010B (the "Series 2010B Bonds ") and $2,825,000* General
Obligation Urban Renewal Bonds, Series 2010C (the "Series 2010C Bonds "); (collectively the "Bonds "). This
Preliminary Official Statement has been executed on behalf the City by its Finance Director and may be distributed
in connection with the sale of the Bonds authorized therein.
may be made to Public Financial Management, Inc., 2600 Grand Avenue, Suite 1 j ..es Moines, Iowa, or by
telephoning (515) 243 -2600. Information c so be obtained from Mr. Ken TeKippe, ance Director, City of
Dubuque, 50 West 13 Street, Dubuque, Iowa � ;; ;; = by telephoning (563) 589 -4133.
The Bonds are being issued pursuant to Division III hapte ;a' e Code of Iowa and resolutions to be adopted
by the City Council of the City. The Bonds are being i€1e. � ua; , III of Chapter 384 and Chapter 403
of the Code of Iowa and resolutions to be adopted by thelei of e ''City. The Series 2010A Bonds are being
issued to provide funds to pay costs of improvements and, nsions to the municipal sanitary sewer and storm water
drainage systems; equipping the sanitation and toad depart nis i nts; improving the City airport grounds and facilities;
the acquisition of land and other costs associated with the Bee Branch storm water project; rehabilitation and
improvement of City parks; construction, reconstruction and repair of sidewalks; improvement and installation of
street lighting fixtures, connections and faci1ities; street improvements, including installation of fiber optic conduit;
and to current refund $690,000 of the outstanding General Obligation Bonds, Series 2002B, dated June 1, 2002 (the
"Series 2002B Bonds). The Series 2010B Bon and the Series 2010C Bonds are being issued to provide funds to
pay aiding planning, costs of aidin in the undertakin g carrying project and ca in out of urban renewal ect activities under the
`
authority of Chapter 403 of the Code of Iowa and the Amended and Restated Urban Renewal Plan for the Greater
Downtown Urban Renewal Area, including those costs associated with the construction of parking improvements and
landscape projects within the Greater Downtown Urban Renewal Area, and the funding of grants, loans and other
financial assistance to private developers to assist in rehabilitation of existing buildings and construction of housing
development projects throughout the Greater Downtown Urban Renewal Area.
1
Maturities to Principal
Name of Issue to be Refunded Call Date Call Price be Refunded Amount Coupon
General Obligation Bonds, 9/2/2010 100% 6/1 /2011 $50,000 4.20%
Series 2002B 6/1/2012 50,000 4.30%
6/1/2013 55,000 4.40%
6/1/2014 55,000 4.50%
6/1/2015 60,000 4.60%
6/1/2016 60,000 4.70%
6/1/2017 65,000 4.80%
6/1/2018 70,000 4.90%
6/1/2019 70,000 4.95%
6/1/2020 75,000 5.00%
6/1/2021 80,000 5.00%
$690,000
The estimated Sources and Uses of the Bonds are as follows:
................
................
...............
..............
Sources of Funds
Uses of Funds
Project Fund Deposit
Funds for Redemption of the
Refunded Bonds
Capitalized Interest
Underwriter's Discount
Cost of Issuance and Conting
Total Uses ::: :..............................
*Preliminary, subject to change
PAYMENT OF AND SECURITY'R THE
Series 2010A Bon
Par Amount of the Bonds 4,470,000.00*
690,1 1,00
99,3 5, .
44,701,1#
29 520.3
';;: ,000.00*
NDS
2
Seri 2010B Bonds
.................
.................
..................
675,000.00*
$2,5
7,,204.59
0.00
X9,354.80
26,750.00
21,690.61
$2,675,000.00*
Series 2010C Bonds
$2,825,000.00*
$2,692,105.14
0.00
74,544.95
28,250.00
30,099.91
$2,825,000.00*
The Bonds are general obligations of the City and the unlimited taxing powers of the City are irrevocably pledged for
their payment. Upon issuance of the Bonds, the City will levy taxes for the years and in amounts sufficient to provide
100% of annual principal and interest due. The City is required to levy ad valorem taxes upon all taxable property in
the City without limit as to rate or amount sufficient to pay the debt service except to the extent that other monies are
deposited in the debt service fund for such purposes.
Nothing in the resolutions authorizing the Bonds prohibits or limits the ability of the City to use legally available
moneys other than the proceeds of the general ad valorem property taxes levied as described in the preceding
paragraph to pay all or any portion of the principal of or interest on the Bonds. If and to the extent such other legally
available moneys are used to pay the principal of or interest on the Bonds, the City may, but shall not be required to,
(a) reduce the amount of taxes levied for such purpose, as described in the preceding paragraph; or (b) use proceeds of
taxes levied, as described in the preceding paragraph, to reimburse the fund or account from which such other legally
available moneys are withdrawn for the amount withdrawn from such fund or account to pay the principal of or
interest on the Bonds.
The City's obligation to pay the principal of and interest on the Bonds is on parity with the City's obligation to pay
the principal of and interest on any other of its general obligation debt secured by a covenant to levy taxes within the
City, including any such debt issued or incurred after the issuance of the Bonds. The resolutions authorizing the
Bonds do not restrict the City's ability to issue or incur additional general obligation debt, although issuance of
additional general obligation debt is subject to the same constitutional and statutory limitations that apply to the
issuance of the Bonds. For a further description of the City's outstanding general obligation debt upon issuance of the
Bonds and the annual debt service on the Bonds, see "DIRECT DEBT" under "CITY INDEBTEDNESS" herein. For
a description of certain constitutional and statutory limits on the issuance of general obligation debt, see "DEBT
LIMIT" under "CITY INDEBTEDNESS" herein.
BOOK - ENTRY -ONLY SYSTEM
The information contained in the following paragraphs of this subsection "Book -Entry -Only System" has been
extracted from a schedule prepared by Depository Trust Company "DTC ") entitled "SAMPLE OFFERING
DOCUMENT LANGUAGE DESCRIBING BOOK - ENTRY -ONLY IS E." The information in this section
concerning DTC and DTC's book -entry system has been obtained ,:;urces that the City believes to be rehable,
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 ect to each $500 million of principal amount, and an additional
certificate will be issued with respect to any re „ principal amount of such issue.
DTC, the world's largest securities depository, rpose tinst organized under the New York
Banking Law, a "banking organization" within the $ aning 6: ew York Banking Law, a member of the Federal
Reserve System, a "clearing corporatio '" within the eanm. w York Uniform Commercial Code, and a
"clearing agency" registered pursuant to th provision K d 1? l lie Securities Exchange Act of 1934. DTC
holds and provides asset servicing for over 3.5 milli . - s of U.S. 'and non-U.S. equity issues, corporate and
municipal debt issues, and money market instruments fro over 100 countries that DTC's participants (the "Direct
Participants ") deposit with DTC. DTC also facilitates the pas settlement among Direct Participants of sales and
other securities transactions in deposited securities, through ec onic computerized book -entry transfers and pledges
between Direct Participants' accounts. This eliminates the ne °ed for physical movement of securities certificates.
Direct Participants include both U.S. and''tit -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: AAA. 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.
3
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 effect 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 "i Securities an is "`:: being redeemed, DTC's
practice is to determine by lot the amount of the interest of each Direct -Participant in such nine to be redeemed
DTC nor Cede & Co., nor any oth
authorized by a Direct Participant in accordai
mails an Omnibus Proxy to the City as soon as
Co.'s consentin g or voting rights to those Direct P
g g
date identified in a listing atta lied to the Omnibus P
ominee, will consent or vote with respect to Securities unless
C's MMI Procedures. Under its usual procedures, DTC
—the record date. The Omnibus Proxy assigns Cede &
cipants "8 ;' *' ;� u se accounts Securities are credited on the record
Redemption proceeds, distrib "'tns, and dividend pay ;
other nominee as may be requested by an authorized re
Participants' accounts upon DTC's receipt of funds and Corr;
payable date in accordance with their respective holdings s
Beneficial Owners will be governed by standing instrut
4
n the Securities will be made to Cede & Co., or such
entative of DTC. DTC's practice is to credit Direct
ponding detail information from the City or Agent, on
;n on DTC's records. Payments by Participants to
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 Cit} a ect 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 notIcArrelect to have its Securities purchased or tendered, through its Participant, to
Remarketing Agent, and shall efferdelivery of such Securities by causing the Direct Participant to transfer the
Participant's interest in the Securities, on DTC's records, to 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 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 believes to be reliable, but the City takes no responsibility for the accuracy thereof.
FUTURE FINANCING
The City anticipates issuing a Water Pollution Control Plant Upgrade Construction SRF 26 year Sewer Revenue
Bonds in this calendar year, and approximately $5,700,000 Water Revenue Bonds, Series 2010D in September 2010.
LITIGATION
The City is a defendant in an action brought in the Iowa District Court fo
of Dubuque), alleging that the gas, electric and cable television franchi,
they constitute unauthorized taxes. This case has been certified a
follows:
5
buque County (J. Thomas Zaber v. City
s imposed by the City are illegal because
ss action with three subclasses defined as
(a) All persons or entities who paid a cable tele'v sign franchise fee imposed by the
City of Dubuque any time after September'5, 2001;
(b) All persons or entities who paid a gas utility franchise fee imposed by the City of
Dubuque any time after September 5, 2001; and
(c) All persons or entities who p. id an electric utility franoWe fee imposed by the
City of Dubuque any time a fl ®t ember 5, 2001.
Plaintiffs seek a refund of all such franchise f ai ,�,.. Se temfC 2001 through the date of judgment, p a:.: g J re g p
judgment interest from the time of the alleged "'';;;';'; gfii;';,,,;', of said franchise fees, post judgment interest as
allowed by law and attorney fees as allowed by 1 The cl a enerally is Wised on a 2006 decision by the Iowa
Supreme Court (Kragnes v. City of Des Moines, 714' =i' .2d :;� ; ,' > "i`;p,:, ;::006. In that case the Iowa p { g ty � )) Supreme Court p
concluded that gas and electric franchise fees not reasq i1 r ated fo ........;reasonable costs of inspecting, licensing,
supervising, or otherwise regulating the activity that is $ ° "' franchised constitute a tax which has been assessed in
violation of Iowa Code Section 364.3(4). A number of -<'` 3: er Iowa cities with similar gas, electric and/or cable
television franchise fee ordinances in effect are facing simil''`` ":aims. On May 26, 2009 the Governor signed Senate
File 478 authorizing (prospectively) gas and electric franchis ° ".... es that do not exceed five percent of a franchisee's
gross revenues, without regard to the city's cost of inspecting, supervising, and otherwise regulating the franchise.
The City of Dubuque has ordinances in effect that impose as and electric franchise fees on gross sales of natural gas
and electricity within the City, and a franchise fee related to the sale of cable television. The franchise fees resulted in
collections of approximately $1,497,421 during Fiscal Year 2008 -09, with total General Fund budgeted revenues for
that year being approximately $47,591,944.
This case is currently stayed in the District Court pending resolution of the plaintiffs' interlocutory appeal of the
District Court's dismissal of their cable franchise fee claims. This is one of a set of cases the Iowa Supreme Court has
consolidated on appeal regarding whether Section 8.5 of Senate File 554 (2007), which retroactively authorized and
validated cable franchise fees previously collected by various cities, is constitutional. The parties have submitted their
appellate briefs and oral argument occurred on January 21, 2009. On January 21, 2009, the Iowa Supreme Court
heard oral arguments. The cases are now fully submitted. The Iowa Supreme Court ruled on June 4, 2010 that the
retroactive provisions of SF 554 were not unconstitutional.
The City believes it has substantial defenses to the action and intends to contest the matter vigorously. There can be
no assurance, however, that a future ruling by the Iowa Supreme Court in the litigation will not require the City and
other cities with similar ordinances to reduce or eliminate their franchise fees. If the City is required to reduce or
eliminate its franchise fees as a result of the foregoing litigation, City staff presently intends to recommend to the City
Council that the City address the loss of franchise fee revenues by reducing or delaying discretionary capital
improvements, reallocating costs to other funds, or adjusting property tax collections.
The City is not aware of any other threatened or pending litigation affecting the validity of the Bonds or the City's
ability to meet its financial obligations.
DEBT PAYMENT HISTORY
The City knows of no instance in which it has defaulted in the payment of principal or interest on its debt.
LEGALITY
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 Preliminary 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 Preliminary Official Statement, and will
express no opinion with respect thereto. The "FORMS OF LEGAL OPI 1NS" as set out in APPENDIX A to this
Preliminary Official Statement, will be delivered at closing.
TAX MATTERS — Series 2010A and Series 2010C Bonds
6
The legal opinions to be delivered concurrently with the delivery of the Bonds express the professional judgment of
the attorneys rendering the opinions as to legal issues expressly addressed therein. By rendering legal opinions, the
opinion giver does not become an insurer or guarantor of the result indicated by that expression of professional
judgment, or of the transaction on which the opinions are rendered, or of the future performance of parties to the
transaction. Nor does the rendering of opinions guarantee the outcome of any legal dispute that may arise out of the
transaction.
There is no bond trustee or similar person to nitor or enforce ;the ; p p usions of the resolul ns for the Bonds. The
owners of the Bonds should, therefore, be pre �' to enforce suLh provisions themselves if the need to do so arises.
In the event of a default in the payment of prim e ® € ::interest on the Bonds, there is no provision for acceleration
of maturity of the principal of the Bonds. C e $ uc a remedies of the owners of the Bonds (consisting
primarily of an action in the nature of mandamus iring and certain other public officials to perform the
terms of the resolutions for the Bonds) rimy have to enforces -year to year. The obligation to pay general ad
valorem property taxes is secured by a statutory hen ' > axe 0 but is not an obligation for which a
owner may be held personally liable in the eve deficiency. T
property Y p Y Y. : :.he owners of the Bonds cannot foreclose "
on property within the boundaries of the City or sell such erty in order to pay the debt service on the Bonds. See
"LEVIES AND TAX COLLECTIONS" herein, for a desc I' of property tax collection and enforcement.
In addition, the enforceability of the rights ( and remes of owners of the Bonds may be subject to limitation as set
forth in Bond Counsel's opinions. The opinions will state, in part, that the obligations 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, to the exercise of judicial
discretion in appropriate cases and to the exercise by the State and its governmental bodies of the police power
inherent in the sovereignty of the State and to the exercise by the United States of America of the powers delegated to
it by the Constitution of the United States of America.
Federal tax law contains a number of requirements and restrictions that apply to the Series 2010A and Series 2010C
Bonds, including investment restrictions, periodic payments of arbitrage profits to the United States, requirements
regarding the proper use of the Series 2010A and Series 2010C Bonds 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 Series 2010A and Series 2010C Bonds to be excludable from gross income for federal
income tax purposes. Failure to comply with certain of such covenants could cause the interest on the Series 2010A
and Series 2010C Bonds to become includable in gross income for federal income tax purposes retroactively to the
date of issuance of the Series 2010A and Series 2010C Bonds.
Subject to the City's compliance with the above - referenced covenants, under present law, in the opinion of Bond
Counsel, interest on the Series 2010A and Series 2010C Bonds is (a) is excludable from gross income of the owners
thereof for federal income tax purposes; and (b) is not included as an item of tax preference in computing the federal
alternative minimum tax imposed on individuals and corporations. In the case of the Series 2010A Bonds, interest IS
taken into account in computing an adjustment used in determining the federal alternative minimum tax for certain
corporations. For the Series 2010C Bonds, such interest is NOT taken into account in computing an adjustment used
in determining the federal alternative minimum tax for certain corporations
Prospective purchasers of the Series 2010A and Series 2010C Bonds should be aware that ownership of the Series
2010A and Series 2010C 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 Series 2010A and Series 2010C Bonds should consult -their tax advisors as to collateral federal
income tax consequences.
State of Iowa Tax Exemption
Interest on the Series 2010A Bonds is not exempt from prese nt Iowa income t > . Bond Counsel's opinion will state
that, under existing laws of the State and the current rules the Iowa Depart of Revenue, the interest on the
Series 2010C Bonds will not be subject to the taxes imposed by Division II, "PersoI•:.::et Income Tax" and Division
III, "Business Tax on Corporations" of Iowa Code Chapter 422, but the interest n will be subject to the
k
franchise fax imposed on Division V, "Financial Institutions" of Iowa Code Chapter on the Series
2010C Bonds will be required to be incluel "adjusted current earnings" to be used computing the "state
alternative minimum taxable income" of cor ®; '':». and financial institutions for purposes of Sections 422.33 and
422.60 of the Iowa Code. Ownership of the Se's, ° °'a. "1' < >.: onds may result in other state and local tax consequences
to certain taxpayers. Bond Counsel expresses ' pinic�;;xe . rding any such collateral consequences arising with
respect to the Series 2010C Bonds. P ospective pt� asers s § eries 2010A and the Series 2010C Bonds should
consult their tax advisors rega .ding htf applicability o -any su 11a local taxes.
Not Qualified Tax - Exempt" >;lligations
The City will NOT designate t h e S i i s 2
Section 265(b)(3) of the Code, therefore
Y
A and Serie Bonds as qualified tax - exempt obligations under
S n s 2010A an SScries 2010C Bonds will NOT be bank qualified.
Tax Accounting Treatment of Discount and Premi ai 1 (L"' ain Tax - Exempt Bonds
The initial public offering price of certain §O es 2010A and Series 2010C Bonds (the "Discount Bonds ") may be less
than the amount payable on such Series 2 (11O. ::. and Series 2010C Bonds at maturity. An amount equal to the
difference between the initial public offering p 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. A portion of such original issue discount
allocable to the holding period of such Discount Bonds by the initial purchaser will, upon the disposition of such
Discount Bonds (including by reason of its payment at maturity), be treated as interest excludable from gross income,
rather than as taxable gain, for federal income tax purposes, on the same terms and conditions as those for other
interest on the Series 2010A and Series 2010C Bonds described above under "TAX MATTERS ". Such interest is
considered to be accrued actuarially in accordance with the constant interest method over the life of Discount Bonds,
taking into account the semiannual compounding of accrued interest, at the yield to maturity on such Discount Bonds
and generally will be allocated to an original purchaser in a different amount from the amount of the payment
denominated as interest actually received by the original purchaser during the tax year.
7
However, such interest may be required to be taken into account in determining the amount of the branch profits tax
applicable to certain foreign corporations doing business in the United States, even though there will not be a
corresponding cash payment. In addition, the accrual of such interest may result in certain other collateral federal
income tax consequences to, among others, financial institutions, life insurance companies, property and casualty
insurance companies, S corporations with "subchapter C" earnings and profits, 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, or who have paid or incurred certain expenses allocable to, tax - exempt obligations. Moreover, in
the event of the redemption, sale or other taxable disposition of Discount Bonds by the initial owner prior to maturity,
the amount realized by such owner in excess of the basis of such Discount Bonds in the hands of such owner (adjusted
upward by the portion of the original issue discount allocable to the period for which such Discount Bonds was held)
is includable in gross income.
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 Series 2010A and Series 2010C Bonds (the "Premium Bonds ") may be
greater than the amount of such Series 2010A and Series 2010C 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. The basis for federal income tax purposes of Premium
Bonds in the hands of such initial purchaser must be reduced each year by the amortizable bond premium, although no
federal income tax deduction is allowed as a result of such reduction in basis for amortizable bond premium. Such
reduction in basis will increase the amount of any gain (or decrease the amount of any loss) to be recognized for
federal income tax purposes upon a sale or other taxable disposition of Premium Bonds. The amount of premium
which is amortizable each year by an initial paser is determined by using such purchaser's yield to maturity.
Purchasers of the Premium Bonds should ccinsul . " '''; �:ir own ta"< advisors with respect to the determination of
amortizable bond premium on Premium Bonds f der .1 w e tax yes and with respect to the state and local
tax consequences of owning and disposing of Pre `i '" Bonds.
TAXABILITY OF INTEREST — Series 2010B Bon
In the opinion of Bond Counsel, under existing law, interest on the Series 2010B Bonds will be includible in gross
income of the owners thereof for federal and state income taxrposes.
Any discussion of nited S federal tax issues included in this Preliminary Official Statement is not intended or
written to be use, and cannot be used, by any taxpayer for the purpose of avoiding federal tax penalties that may be
imposed on the` fayer. Such discussions were written in connection with the promotion or marketing of any Series
2010B Bonds. Each, taxpayer should seek advice from an independent tax advisor based on the taxpayer's particular
circumstances.
The following is a summary of certain United States federal income tax consequences resulting from the beneficial
ownership of Series 2010B Bonds by certain persons. This summary does not consider all the possible federal income
tax consequences of the purchase, ownership, or disposition of Series 2010B Bonds and is not intended to reflect the
individual tax position of any beneficial owner. Moreover, except as expressly indicated, this summary is limited to
those persons who purchase the Series 2010B Bonds at its issue price, which is the first price at which a substantial
amount of the Series 2010B Bonds is sold to the public, and who hold Series 2010B Bonds as "capital assets" within
the meaning of Section 1221 of the Code. This summary does not address beneficial owners that may be subject to
special tax rules, such as banks, insurance companies, dealers in securities or currencies, purchasers that hold Series
2010B Bonds as a hedge against currency risks or as part of a straddle with other investments or as part of a "synthetic
security" or other integrated investment (including a "conversion transaction ") comprising the Series 2010B Bonds
and one or more other investments, or United States owners that have a "functional currency" other than the United
States dollar (Special Taxpayers). This summary is applicable only to a person ( "United States Owner ") who or
which is the beneficial owner of Series 2010B Bonds and is (a) an individual citizen or resident of the United States,
(b) a corporation created or organized under the laws of the United States or any State (including the District of
Columbia), or (c) a person otherwise subject to federal income taxation on its worldwide income. This summary is
based upon the United States tax laws and regulations currently in effect and as currently interpreted and does not take
8
into account possible changes in the tax laws or the interpretations, any of which may be applied retroactively. It does
not discuss the tax laws of any state, local, or foreign governments.
Payments of Stated Interest
In general, interest on the Series 2010B Bonds will be taxable as ordinary income at the time it is received or accrued,
depending on the beneficial owner's method of accounting for tax purposes.
Oriiinal Issue Discount
If the stated redemption price at maturity of the Series 2010B Bonds exceeds its "issue price," such excess is treated
as original issue discount ( "OID ") unless the amount of such excess is less than a specified de minimis amount
(generally equal to 0.25% of the stated redemption price at maturity multiplied by the number of complete years to
maturity). The issue price of the Series 2010B Bonds is the first price at which a substantial amount of the Series
2010B Bonds is sold to the public.
With respect to an owner of the Series 2010B Bonds that purGs in the initial offering the Series 2010B Bonds
issued with an OID, the amount of OID that accrues during any accrual period equals (a) the product of (i) the
"adjusted issue price" of the Series 2010B Bonds at the beginning of the accrual period (which price equals the issue
price of such Series 2010B Bonds plus the amount of OID that has accrued on a constant -yield basis in all prior
accrual periods minus the amount of any payments, other than "qualified stated interest," received on the Series
2010B Bonds in prior accrual periods) and (ii) the yield to maturity of such Series 2010B Bonds (determined on the
basis of compounding at the close of each ac
less (b) any qualified stated interest payable
OID so accrued in a particular accrual period
period.
eriod and properly adjusted for the length of each accrual period),
es 2010B Bonds during such accrual period. The amount of
idered to b received ratably on each day of the accrual
An owner of the Series 2010B Bonds issued with '; OID. 3 1 de in gross income for federal income tax
purposes the amount of OID accrued with respect to e ring ble year that the owner owns the Series
2010B Bonds. Such an inclusion in advance of receipt ; cash attrih 'able to the income is required even if the
owner is on the cash method of accounting for United Stay ederal income tax purposes. The amount of OID that is
includible in an owner's gross income will increase the own "''s : tax basis in the Series 2010B Bonds. Such basis will
be decreased by the amount of any payments other tha , quali' $:,stated interest received on the Series 2010B Bonds.
The adjusted tax basis in the Series 2010B Bonds will be ed to determine taxable gain or loss upon a disposition
(for example, upon a sale or retirement) of the Series 2010 B onds.
If the Series 2010B Bonds issued with an c_)ID is purchased by an owner for a cost that exceeds the adjusted issue
price as of the purchase date and that is less than the stated redemption price at maturity of the Series 2010B Bonds,
then the amount of OID that is deemed to accrue thereafter to the owner will be reduced to reflect the amortization of
such excess ( "acquisition premium ") over the remaining life of the Series 2010B Bonds.
Original Issue Premium
Under the Code, an owner that purrs the Series 2010B Bonds for an amount in excess of its stated redemption
price at maturity may elect to treat such excess as "amortizable bond premium," in which case the amount of interest
required to be included in the owner's income each year with respect to interest on the Series 2010B Bonds will be
reduced by the amount of amortizable bond premium allocable (based on the Series 2010B Bonds' yield to maturity)
to that year. If such an election is made, the amount of each such reduction in interest income will result in a
corresponding reduction in the owner's tax basis in the Series 2010B Bonds. Any election to amortize bond premium
is applicable to all taxable debt instruments held by the owner at the beginning of the first taxable year to which the
election applies or thereafter acquired by the owner and may not be revoked without the consent of the Internal
Revenue Service (the "Service ").
Information Reporting and Back-up Withholdinp
In general, information reporting requirements will apply with respect to payments to an owner of principal and
interest (and with respect to annual accruals of OID) on the Series 2010B Bonds, and with respect to payments to an
owner of any proceeds from a disposition of the Series 2010B Bonds. This information reporting obligation,
9
however, does not apply with respect to certain owners including corporations, tax - exempt organizations, qualified
pension and profit sharing trusts, and individual retirement accounts. In the event that an owner subject to the
reporting requirements described above fails to supply its correct taxpayer identification number in the manner
required by applicable law or is notified by the Service that it has failed to properly report payments of interest and
dividends, a backup withholding tax (currently at a rate of 28 %) generally will be imposed on the amount of any
interest and principal and the amount of any sales proceeds received by the owner on or with respect to the Series
2010B Bonds. Any amounts withheld under the backup withholding provisions may be credited against the United
States federal income tax liability of the beneficial owner, and may entitle the beneficial owner to a refund, provided
that the required information is furnished to the Service.
Disclaimer Reuardinu Federal Tax Discussion
The federal income tax discussion set forth above is included for general i ,, rmation only and may not be applicable
depending upon a beneficial owner's particular situation. Beneficial owners should consult their tax advisors with
respect to the tax consequences to them of the purchase, ownership, and disposition of the Series 2010B Bonds,
including the tax consequences under state, local, foreign, a other tax laws and the possible effects of changes in
federal or other tax laws.
State Tax Considerations
In addition to the federal income tax consequences des ed above, potential inve . _r` should consider the state
income tax consequences of the acquisition, ownership, and disposition of the Series 20 ‘r E onds. State income tax
law may differ substantially from the corresponding federal law, and the foregoing is not ,, i`° nded to describe any
aspect of the income tax laws of any state. Therefore,,potential investors should consult their own tax advisors with
respect to the various state tax consequences of an investment in Serie 0B Bonds.
RELATED TAX MATTERS
The Service has an ongoing program of auditing tax - exempt obligations determine whether, in the view of the
Service, interest on such taxtiexempt obligations is incl
income tax purposes. It cannot be predicted whether or
and Series 2010C Bonds. If an audit is commenced, and
taxpayer and the bondholders may have no right to r *_r'cip
could adversely affect the market value and liquidity
concluded, regardless of the ultimate outcome.
There are or may`t5e pending in the ongress sr d United States, legislative proposals, including some that carry
retroactive effective dates, that, if enacted, could a r or amend the federal tax matters referred to in this section or
affect the market value of the Series 2010A l and Series 2010C Bonds. It cannot be predicted whether or in what form
any such proposal might be enacted or whether, if enacted, it would apply to Series 2010A and Series 2010C Bonds
issued prior to enactment. Prospective purchasers of the Series 2010A and Series 2010C Bonds should consult their
own tax advisors regarding any o ;r_ I, , or proposed tax legislation. Bond Counsel expresses no opinion regarding
any pending or proposed federal or ' ' e tax legislation.
RATING
The City has requested a rating on the Bonds from Moody's Investors Service ( "Moody's "). Moody's currently
maintains a rating of 'Aal' on the City's long -term general obligation debt. Such rating, if and when received,
reflects only the view of the rating agency and any explanation of the significance of such rating may only be
obtained from the respective rating agency. There is no assurance that such rating, if and when received, will
continue for any period of time or that it will not be revised or withdrawn.
FINANCIAL ADVISOR
in the groncome of the owners thereof for federal
e Service will commence an audit of the Series 2010A
rrent procedures the Service may treat the City as a
such procedure. The commencement of an audit
e es 2010A and Series 2010C Bonds until the audit is
The City has retained Public Financial Management, Inc., Des Moines, Iowa as financial advisor (the "Financial
Advisor ") in connection with the preparation of the issuance of the Bonds. In preparing the Preliminary Official
10
Statement, the Financial Advisor has relied on government officials, and other sources to provide accurate information
for disclosure purposes. The Financial 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 Preliminary Official
Statement. Public Financial Management, Inc. 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 permit bidders for the Bonds and other Participating Underwriters in the primary offering of the Bonds to
comply with paragraph (b)(5) of Rule 15c2 -12 promulgated by the Securities and Exchange Commission under the
Securities Exchange Act of 1934, as amended (the "Rule "), the City will covenant and agree, for the benefit of the
registered holders or beneficial owners from time to time of the outstanding Bonds, in the resolution authorizing the
issuance of the Bonds and the Continuing Disclosure Certificate, to provide annual reports of specified information
and notice of the occurrence of certain events, if material, as hereinafter described (the "Disclosure Covenants "). The
information to be provided on an annual basis, the events as to which notice is to be given, if material, and a summary
of other provisions of the Disclosure Covenants, including termination, amendment and remedies, are set forth as
APPENDIX C to this Preliminary Official Statement. The City has complied in all material respects with its previous
undertakings under the Rule. Breach of the Disclosure Covenants will not constitute a default or an "Event of
Default" under the Bonds or the resolution for the Bond A broker or dealer is to consider a known breach of the
Disclosure Covenants, however, before recommending the purchase or sale of the Bonds in the secondary market.
Thus, a failure on the part of the City to obse ; ' °;;; e Disclosure Covenants may adversely affect the transferability and
liquidity of the Bonds and their market price.
CERTIFICATION
*Preliminary, subj
change
The City has authorized the distribution of this Prel
sale of the Bonds. I have reviewed the information c
behalf of the City by Public Financial Management, In
does not contain any material misstatements of fact no
nary
ins
ement for use in connection with the initial
thine ehminary Official Statement prepared on
iVloines, Ioo , and said Preliminary Official Statement
}�ission of any material fact regarding the issuance of
$4,470,000* General Obligation Bonds, Series' 2010A, 2, 75,000* Taxable General Obligation Urban Renewal
Bonds, Series 2010B, and $2, 825,000* General Obligation UrbanRenewal Bonds, Series 2010C.
CITY OF DUBUQUE, IOWA
/s/ Ken TeKippe, Finance Director
11
• .:{
IOWA PROPERTY VALUATIONS
In compliance with Section 441.21 of the Code of Iowa, the State Director of Revenue annually directs the county
auditors to apply prescribed statutory percentages to the assessments of certain categories of real property. The 2009
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 2009, the
Taxable Value rollback rate was 46.9094% of Actual Value for residential property; 66.2715% of Actual Value for
agricultural property; and 100% of Actual Value for commercial, industrial, railroad and utility property.
The Legislature's intent has been to limit the growth of statewide taxable valuations for the specific classes of
property to 4% annually. 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.
1/1/2009 VALUATIONS (Taxes payable July 1, 2010 to June 30, 2011)
Residential
Commercial
Industrial
Railroads
Other
Utilities w/o Gas & Electric
Gross valuation
Less military exemption
Net valuation
TIF increment (used to compute bt
service levies'' and onstitutional d bhunit
Taxed separately
p Y
Ag. Land & Buildings
Gas & Electric Utilities
1) Does not include $43,519 of
Residential
Gas & Electric Utilities
Commercial, Industrial, Utility and Other
Railroads
Total Gross Taxable Valuation 1)
1 TIF.
1) Excludes Taxable TIF Increment and Ag Land & Buildings
CITY PROPERTY VALUES
Land
100% Actual. Value
$2,239,01
776,528;897.L
77, 913,771"
1,981
130
$3,09
057,354
554 228
3,126
$249,501,324
$3,538,848 1)
$134,117,918
2009 GROSS TAXABLE VALUAT ON BY CLASS OF PROPERTY
Gross Taxable Valuation Percent Total
$1,050,070,641
69,934,682
864,422,259
2,571,981
$1,986,999,563
12
Taxable Value
(With Rollback)
$1,050,070,641
776,528,897
77,913,771
2,571,981
705,130
9,274,461
$1,917,064,881
(6,554,228)
$1,910,510,653
$249,501,324
$2,330,570
$69,934,682
52.85%
3.52%
43.50%
0.13%
100.00%
TREND OF VALUATIONS
Assessment
Year
2005
2006
2007
2008
2009
Payable
Fiscal Year
2006 -07
2007 -08
2008 -09
2009 -10
2010 -11
The 100% Actual Valuations, before rollback and after the reduction of military exemption, include Ag. Land &
Buildings, Taxable TIF Increment and Gas & Electric Utilities. The Taxable Valuations, with the rollback and after
the reduction of military exemption, include Gas & Electric Utilities and exclude Ag. Land & Buildings and Taxable
TIF Increment. Iowa cities certify operating levies against Taxable Value excluding TIF Increment and debt service
levies are certified against Taxable Value including the TIF Incremnt.
LARGER TAXPAYERS 1)
Taxpayer 1)
Kennedy Mall Inc
Medical Associates Realty LP
Otto A LLC
Nordstrom Inc
The McGraw Hill Companies Inc
Walter Development LLC
Platinum Holdings LLC
Minglewood Limited Partnership
Asbury Dubuque LLC
Lexington Dubuque LLC
1) Larger Taxpayers listed excludes Utilitie
2) Figures for 1/1/2009 are not yet available
100% Actual Valuation
$2,909,988,480
2,978,362,258
3, 272, 412, 812
3, 344, 873, 516
3,486,704,735
Type of Property/Business
Commercial
Commercial''
ustrial
rcial
omm , o 3,
mmercia,
13
er
Cow ° 'a` "e1
Com'''p':" ial
Comm' 'a1
e DubuqueC '; y Auditor
Net Taxable Valuation
(With Rollback)
$1,721,363,436
1,762,000,629
1,878,770,648
1,935,666,751
1,980,445,335
1/1/2008
Taxable Valuation 2)
$ 26,371,900
19,157,470
17, 500,000
16, 883,900
11,437,200
11, 288,140
11,178,500
9,947,600
9,896,100
9,843,800
Taxable
TIF Increment
$138,074,878
134,777,658
148,458,171
174,885,331
249,501,324
LEGISLATION
From time to time, legislative proposals are pending in Congress and the Iowa General Assembly that would, if
enacted, alter or amend one or more of the property tax matters described herein. It cannot be predicted whether or in
what forms any of such proposals, either pending or that may be introduced, may be enacted, and there can be no
assurance that such proposals will not apply to valuation, assessment or levy procedures for taxes levied by the City
or have an adverse impact on the future tax collections of the City. Purchasers of the Bonds should consult their tax
advisors regarding any pending or proposed federal or state tax legislation. The opinions expressed by Bond Counsel
are based upon existing legislation 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 pending federal or state tax legislation.
Iowa Code section 76.2 provides that when an Iowa political sub issues general obligation debt: "The
governing authority of these political subdivisions before issui a ds shall, by resolution, provide for the
assessment of an annual levy upon all the taxable property in the s p division sufficient to pay the interest and
of the bonds within a period named not exceeding the, a icable rd o f time specified in section 76.1. A
principal P g p.o
:.: p
itors of the counties in which the
to enter annually this levy for
until funds are realized to pay
nt to pay the interest and
xceeding twenty years
to refund or refinance
certified copy of this resolution shall be filed with the county auditor or the:::, a
political subdivision is located; and the filing shall make it a duty of the audi
collection from the taxable property within the boundaries of the political subdivisi
the bonds in full." Iowa Code section 76.1 provides that the annual levy shall be su
approximately such portion of the principal of the bonds as will retire them in a period
from the date of issue, except for certain bon sued for disaster purposes and bonds issu
14
bonds issued for such disaster purposes whic ture and be retired in a period not exceeding thirty years from
date of issue.
DEBT LIMIT
DIRECT DEBT
General Obligation Debt (Includes the Bon
Date
of Issue
03 /02B
12 /02C
10 /03
04 /05A
04/05B
04/05C
05 /06A
05/06B
05/06C
11 /07A
11/07B
10 /08A
10 /08B
10/08C
10 /09A
10 /09B
10/09C
8 /10A
8 /10B
8/10C
Original
Amount
$1,000,000
3,105,000
2,110,000
1,750,000
4,270,000 ;:
2,995,000
2,900,000
910,000
3M4000
1, 055,.14.
2,985,0:::::
3,885,00V
3,290,000
2,465,000
2,935,000
11,175,000
8,885,000
4,470,000*
2,675,000*
2,825,000*
Purpose
CITY INDEBTEDNESS
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
2009 actual valuation currently applicable to the fiscal year 2010 -11, is as follows:
2009 Actual Valuation of Property
Less: Military Exemption
Net Actual Valuation of Property
Legal Debt Limit of 5%
Legal Debt Limit
Less: Outstanding G.O. Debt
Less: Urban Renewal Revenue Debt
Less: Urban Renewal TIF Rebate Agreem
Net Debt Limit
Corporate,`urpose
Corporate Purpose & Re
Corporate Purpose 3)
Corporate Purpose?
DICW t Addition Urban Renewal 1)
WiDICW 3 Addition Urban Renewal'
Corporate Purpose 4)
General Obligation Urban Renewal 5)
Refunding 6)
General Obligation Sewer'
Refunding:, r
:General Obligation Stormwater 4)
:R neral %ligation Urban Renewal 1)
General O ligation Urban Renewal (Taxable)
Corp`Purpose 8)
Corporate Purpose 5)
Refunding 9)
Corporate Purpose and Refundin 1) 10)
General Obligation Urban Renewal (Taxable)
General Obligation Urban Renewal 1)
Total General Obligation Debt
1) Paid by tax increment revenues
2) Paid by water revenues
3) Paid by stormwater and gaming revenues
4) Paid by stormwater revenues
5) Paid by tax increment and parking revenues
6) Paid by tax increment and airport hangar rental revenues
*Preliminary, subject to change
15
$3,493,258,963
(6,554,228)
$3,486,704,735
0.05
$174,335,237
(61,065,000)*
(25,777,442)
(15,219,315)
$72,273,480
Principal
Final Outstanding
Maturity As of 8/02/10
6 /10 $0
6/17 1,285,000
6/23 1,510,000
6/24 1,405,000
6/21 3,715,000
6/16 1,860,000
6/25 2,480,000
6/21 725,000
6/20 3,360,000
6/17 850,000
6/17 2,665,000
6/28 3,645,000
6/23 2,980,000
6/18 2,260,000
6/29 2,935,000
6/29 11,175,000
6/21 8,245,000
6/30 4,470,000*
6/30 2,675,000*
6/30 2,825,000*
$61,065,000*
7) Paid by sewer revenues
8) Paid by local option sales tax, road use tax, property tax,
and stormwater revenues
9) Paid by tax increment and gaming revenues
10) Paid by sewer revenues, stormwater revenues, road use
tax, local option sales tax, and refuse fees
Urban Renewal Revenue Debt
Principal
Date Original Final Outstanding
of Issue Amount Purpose Maturity As of 8/02/10
3/99 $900,000 Advanced Data -Comm 6/11 $46,333
12/99 360,000 Categraph Systems 12/10 9,933
2/00 3,168,538 Eagle Window & Door 6/12 877,396
12/03 140,000 Vessel Systems 6/15 83,523
02/04 500,000 Adams Co. 6/15 227,273
06/04 182,000 Lower Main Development LLC 6/16 125,176
11/06 806,088 Theisen Supply, Inc. 6/18 692,279
10/07 23,025,000 Port of Dubuque Parking Ramp 6/37 23,025,000
8/09 690,529 40 Main LLC 12/21 690,529
Total Urban Renewal Debt
16
$25,777,442
Annual Fiscal Year General Obligation Debt Service Payments
(Excludes the refunded portion of the Series 2002B bonds and includes the Bonds)
Total $51,095,000
Current
Outstanding. Debt Series 2010A Bonds Series 2010B
Fiscal Principal
Year Principal and Interest Principal*
2009 -10 $3,215,000 $5,342,185 $55,000
2010 -11 3,300,000 5,319,940 205,000
2011 -12 3,380,000 5,290,154 215,000
2012 -13 3,695,000 5,486,065 215,000
2013 -14 3,830,000 5,481,003 225,000
2014 -15 3,975,000 5,474,735 225,000
2015 -16 4,150,000 5,484,595 230,000
2016 -17 3,955,000 5,117,531 240,000
2017 -18 3,665,000 4,659,476 250,000
2018 -19 3,835,000 4,676,714 255,000
2019 -20 3,235,000 3,913,396 265,00,0:;;;:;
2020 -21 1,720,000 2,258,710 200
2021 -22 1,790,000 2,248,891 2(
2022 -23 1,410,000 1,785,496 21
2023 -24 1,335,000 1,643,351 220,0
2024 -25 1,155, 000 1,398,133 .n „ . 230,000
2025 -26 1,200,000 1,383
2026 -27 1,245,000 1,3
2027 -28 1,005,000 1,
2028 -29
* Preliminary, subject to change
Principal
and Interest*
$168,062
354,676
362,216
358,797
364,626
359,474
358,444
361,613
363,933
360,433
361,329
6, 5 51
51
6
28
281 P7
66
Prmcipal*
o
00
95,
100,00
105,000
110,000
115,000
125,000
130,000
140,000
145,000
155,000
165,000
180,000
X0,000
230,000
2,675,000*
17
$119,355
248,553
246,267
248 423
22
• 0
#5,997
22
247;94'7
245,459:1;
247,438
243,618
244,324
244,264
248,440
246,524
243,832
245,352
245,732
Series 2010C Bonds
Total
Outstanding Debt
Principal Principal
Principal* and Interest* Principal* and Interest*
$74,545 $3,270,000 $5,704,147
000 214,027 3,710,000 6,137,196
00 212,647 3,800,000 6,111,284
ii a 210,818 4,120,000 6,304,103
120,1 M 213,587 4,270,000 6,304,048
120,000 210,839 4,420,000 6,290,795
125,000 212,623 4,610,000 6,301,659
130,000 213,911 4,435,000 5,938,665
135,000 214,751 4,165,000 5,482,742
140,000 215,161 4,355,000 5,500,255
145,000 215,163 3,775,000 4,735,347
150,000 214,812 2,210,000 3,007,511
155,000 214,112 2,295,000 2,990,572
160,000 213,067 1,940,000 2,528,843
165,000 211,683 1,885,000 2,381,675
170,000 209,984 1,735,000 2,140,002
180,000 212,963 1,810,000 2,127,266
185,000 210,403 1,880,000 2,104,105
195,000 212,504 1,675,000 1,801,527
205,000 214,041 705,000 741,680
$2,825,000*
$61,065,000*
Annual Fiscal Year Urban Renewal Revenue Debt Service Payments
Fiscal Outstanding
Year Principal
2010 -11 $900,828
2011 -12 937,283
2012 -13 539,830
2013 -14 577,674
2014 -15 616,351
2015 -16 594,811
2016 -17 612,161
2017 -18 659,576
2018 -19 587,249
2019 -20 632,479
2020 -21 678,004
2021 -22 681,195
2022 -23 680,000
2023 -24 730,000
OTHER DEBT
Date
of Issue
10/07
The Ci
Date
of Issue
1 /09A $2,00
3/09B 3,200,0
Total
Outstanding
Principal &
Interest
$2,822,760
2,790,542
2,326,347
2,324,747
2,321,196
2,254,676
2,227,409
2,228,496
2,108,784
2,110,534
2,109,284
2,062,330
2,012,000
2,011,000
$1,037,0
5,000
The City has revenue debt payable solely. `rom the neuter rev
Purpose '`"
ovemeritRF)
ents`` € € € »�
Purpose
er Improvements (SRF)
ewer Interim Financing (SRF)
18
Fiscal Outstanding
Year Principal
2024 -25 $785,000
2025 -26 845,000
2026 -27 910,000
2027 -28 975,000
2028 -29 1,050,000
029 -30 1,130, 000
2030 -31 1,215,000
2031 -32 1,305,000
X032 -33 1,400,000
3 -34 1,505,000
2 -35 1,620,000
2035::: 1,740,000
2036 -3 `> >::::,, 1.870.000
Total
Final
Maturity
6/28
6/23
Final
Maturity
6/28
3/12
777,442
of the City's water system:
Principal
Outstanding
As of 8/02/10
$958,000
1,125,000
$2,083,000
om the net sewer revenues of the City's sewer system:
Principal
Outstanding
As of 8/02/10
$1,699,000
3,200,000
$4,899,000
Outstanding
Principal &
Interest
$2,011,250
2,012,375
2,014,000
2,010,750
2,012,625
2,013, 875
2,014,125
2,013,000
2,010,125
2,010,125
2,012,250
2,010,750
2,010,250
INDIRECT GENERAL OBLIGATION DEBT
DEBT RATIOS
Taxing District
Dubuque County
Dubuque Comm. School District
Northeast Iowa Comm. College
City share of total overlapping debt
1) Taxable valuation includes tax increment valuation
2) Excludes revenue supported debt, tax and aid anticipation certificat ; ;;school energy loans
Total General Obligation Debt
City's share of overlapping debt
LEVIES AND TAX COLLECTIONS
Fiscal Year
2006/07
2007/08
2008/09
2009/
2010 /1
17,
18,21 ,
36,7
444
2
Taxes in Io
delinquency is
regular tax sale on
amount equal to the t
applied to taxes. A prop
the tax sale purchaser is en
tax installments.
City's
1/1/2009 Percent Proportionate
Taxable Valuation 1) In City G.O. Debt 2) Share
$3,828,616,126 58.31% $480,000 $279,888
3,002,740,880 74.34% 0 0
9,045,384,099 24.68% 65,760,000 16,229,568
G.O:.
$61,065,0
..16,509,456
19
ollected DuIin
Collcton Year
Dlg:Actual
Mark Value
($3,486,7135)
1.75%
0.47%
17497,000
18,1137
8,667;933
8,379
In Process of Collection
Percent
Collected
99.89%
99.54%
99.63%
99.96%
$16,509,456
Debt /57,686
Population
$1,058.58
$286.20
Octo and April 1 and a late payment penalty of 1% per month of
dates. delinquent taxes are not paid, the property may be offered at the
f June following the delinquency date. Purchasers at the tax sale must pay an
ssments, interest and penalties due on the property and funds so received are
ay redeem from the regular tax sale but, failing redemption within three years,
a deed, which in general conveys the title free and clear of all liens except future
TAX RATES'
Dubuque County
City of Dubuque
Dubuque Community School District
Northeast Iowa Community College
City Assessor
County Ag. Extension
Sunnycrest Manor County Hospital
State of Iowa
Total Tax Rate
') The FY 2010/11 tax rates are not yet available for all entitles
LEVY LIMITS
A city's general fund tax levy is limited to $8.10 per.
per $1,000 levy for an emergency fund which can be
Division I). Cities may exceed the $8.10 limitation upon
limited special purpose levies which may be certified ou
Section 384.12). The amount of the City general fund levy sUl
The City does levy costs for tort liability and other insuranc
publicly owned transit, and for employee benefits in addition to th
the City does not levy an emergency:: levy. Debt service le
FUNDS ON HAND (C
Agency
ital
ent
Debt
Enterpn
General
anent
Tota
FY 2005 -06
$ /$1,000
6.08416
9.69910
15.09695
0.60517
0.32435
0.04037
0.23354
0.00400
32.08764
estments
FY 2006 -07
$ /$1,000
6.17924
9.98033
15.92538
0.61127
0.30221
0.03934
0.26247
0.00400
33.36475::>
FY 2007 -08
$ /$1,000
6.42691
10.31690
16.40925
0.61270
0.32694
0.03841
0.26275
0.00350
X 4.39736
TMENTF JUNE" 3020 10)
•
20
$ 1,089,058
9,595,198
10, 666,102
73,360
18, 502,105
13,164,267
2,241,135
56,696
6,969,670
$62,357,592
FY 2008 -09
$ /$1,000
6.40844
9.96904
16.88112
0.55714
0.32436
0.03572
0.26744
0.00350
34.44676
FY 2009 -10
$ /$1,000
6.40435
9.85777
16.87918
0.99471
0.28030
0.03298
0.26342
0.00300
34.71571
{) of taxable value, provision for an additional $0.27
for general fund purpo ,,(Code of Iowa, Chapter 384,
horizatio. b a special election. Further, there are
of a described limits (Code of Iowa,
the $8.10 limitation9i $8.10 for FY 2010 -11.
pense, for the operation and maintenance of
x : 10 general fund limit as authorized by law.
are not limited.
CITY GOVERNMENT
EMPLOYEES; PENSIONS
OTHER POST EMPLOYMENT BENEFITS
In addition to providing pension benefits,
purchase health insurance at t
expense, is included withi _ ity
subsidized by the City an urrent e
liability. Based on the results e City
was $945,000. The contributions' ma
UNION CO
City employees
Baraainirm Unit
CTS
to
Teamsters -Local # 120
Teamsters -Local # 120 (Bus
Dubuque Professional Firefighte iation
Dubuque Police Protective Associa �n
International Union of Operating Engineers -Local # 748
THE CITY
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.
The City has 533 full and 152 permanent part-time employees and 212 seasonal employees, including a police force
of 102 sworn personnel and a fire department of 89 fire fighters. Of the ;qty's 897 employees, 532 are currently
enrolled in the Iowa Public Employees Retirement System (the "IPERS") pension plan administered by the State of
Iowa. The City is current in its obligation to IPERS, which has been $1,217,758 in Fiscal Year 2007-
08, $1,384,779 in Fiscal Year 2008 -09, and $1,527,020 in Fiscal''; x:10.
In addition, the City contributes to the Municipal Fire and ;;; Retireme "'stem of Iowa (the "MFPRSI "), a
benefit plan administered by a Board of Trustees. MFP provides retireme" "�,,µdisability and death benefits that
are established by State statute to plan members and beik iaries. Plan members a� .; quired to contribute 9.4% of
their earnable compensation and the City's contribution "" ; is 19.90% of earnabTe compensation. The City is
current in its obligation to MFPRSI, their contributions to''> ";::; fo Iast three years ;; as been: $2,630,188 in
Fiscal Year 2007 -08, $2,107,860 in Fiscal Year 2008-09, and $ n Fiscal Year 20040.
epresented by the following bargaining units:
the City offers health insura enefits to its retirees. Retirees can
cost. Health insurance for these ti ees, while at the individual's own
all insurance package. Therefore, a portion of the coverage is being
ees resulting in an Other Post Employment Benefits (the "OPEB ")
tuarial study, the City's annual OPEB cost for Fiscal Year 2008 -09
43, resulting in a Net OPEB Obligation of $920,157.
21
Contract Expiration Date
June 30, 2011
June 30, 2011
June 30, 2011
June 30, 2011
June 30, 2011
INSURANCE
The City's insurance coverage is as follows:
Type of Insurance Limits
General Liability $12,000,000
Automobile Liability $12,000,000
Public Officials $12,000,000
Police Professional Liability $12,000,000
Boiler & Machinery $2,500,000
Property
Blanket $274,837,494
Fidelity Bonds — All Employees $100,000
City Manager, Finance Director, Budget Director,
Assistant Finance Director Add'1 $900,000
Airport Commission $5,000,000
Airport Liability $20,000,000
22
LOCATION AND TRANSPORTATION
The City, with a 2000 Census population of 57,686, has a land area of 31.8 square miles. Annexation activity in
recent years has been voluntary with over 760 acres annexed in the past 5 years. The City lies at the intersection of
Highways 61/151 and 20. The City is located approximately 16 miles northwest of Galena, Illinois; 65 miles north
of the Quad Cities (Rock Island and Moline, Illinois and Bettendorf and Davenport, Iowa); 85 miles east of
Waterloo, Iowa; 176 miles west of Chicago Illinois and 185 miles northeast of Des Moines, Iowa. The Dubuque
Regional Airport is located 6.5 miles south of the City. The airline serving the City is American Eagle, providing
all jet service to Chicago. The City is also served by three railroads, the Burlington Northern, I &M Rail Link and
Chicago, Central and Pacific; and Greyhound provides bus service.
LARGER EMPLOYERS
A representative list of larger employers in the City is as follows:
Employer
John Deere Dubuque Works
Dubuque Community School Dist
Hy -Vee
Mercy Medical Center
IBM Corp
The Finley Hospital
City of Dubuque
Eagle Window and Door
Medical Associates Clinic, P C
Prudential Retirement
Dubuque County
Flexsteel Industries, Inc
McKesson
Holy Family Catholic Schools
Dubuque Racing Association 3)
Loras College
Quebecor World Dubu
Dubuque Bank & T
Cottingham & B
Thermo Fischer Sci
A Y McDonald Mfg
University of Dubuque
Molo Oil Company
Rite -Hite Corporation
Diamond Jo Casino
Woodward Communications, Inc
Medline
GENERAL INFORMATION
Type of Busmen
Manufacturing
Education
Grocery Stores
Health Care Servi';'<;;
Technology Services
Care Services
City Government
Manufacturing
Health Care Services
Retirement Administration
County Government
ufacturing
ocessing Services
n
Ins - Services
abor. quipment Manufacturing
nufac
ation
eum Distributor
ated Metal Products
ainment
paper Printing
alth Care Equipment
23
Approximate Number
of Employees
1,800
1,573 i)
1,350
1,324
0 2 )
750
743
550
450
450
425
400
390
385
370
365
360
350 4)
345
327
300
300
300
268
250
1) Reflects the recent layoff of 54 employees due to State of Iowa budget cuts
2) This new facility opened in July 2009 They are in the process of hiring and anticipate employing approximately 1,300 people by
the end of 2010
3) D B A Dubuque Greyhound Park & Casino
4) The plant is closing its Dubuque operations Layoffs will be phased between January and September 2010, with the
closure occurring in September 2010
Source Greater Dubuque Development Corporation website as of July 2010, KCRG -TV9 and the City
BUILDING PERMITS
City officials report the following construction activity as of June 30, 2010. Building permits are reported on a
fiscal year basis.
Commercial/
Fiscal Year Single Family Multi- Family Industrial Total Permits° Total Valuation°
2009/10 79 21 12 1,596 $77,312,483
2008/09 39 7 19 1,740 81,460,036
2007/08 62 14 38 1,490 170,518,137
2006/07 97 14 27 1,433 119,690,921
2005/06 82 20 26 1,154 90,882,968
2004/05 110 25 37 1,600 162,184,384
1) Totals include single family, multi - family, commercial /mdustnal, remodeling, roofing, siding, decks, additions and other
miscellaneous residential and commercial permits
U.S. CENSUS DATA
Population Trend
Source U S Census Bureau website
UNEMPLOYMENT RATES
Annual Averages:
Source Iowa Workforc
EDUCATION
1980 U.S. Census
1990 U.S. Census
2000 U. S. Census
2008 U. S. Census Estimate
Dubuque' .:;;
County
3.7%,,,,,,,,,,
21 << ? 4.010E.
200: ' 4.6%1E
09 %
Jan.
Public education to the City is p
10,697 for the 2009 -10 school yea
The Dubuque Community School Di
middle schools and thirteen elementary sc
24
62,374
57,546
57,686
57,250
3.7%
3.7%
4.4%
6.0%
6.7%
uque Community School District, with a certified enrollment of
roximately 1,650 full and part-time employees of the district.
prised of two high schools, an alternative high school, three
EFFECTIVE BUYING INCOME
Effective Buying Income ( "EBI ") and Retails Sales for 2009 are reported as follows:
City of Dubuque $1,031,270,000
Dubuque County 1,756,855,000
State of Iowa 57,558,472,500
Source Claritas, Inc
FINANCIAL SERVICES
Total
EBI
Median
Household EBI
$34,645
38,201
38,919
Financial services for residents of the City are provided by American Trust and Savings Bank, Dubuque Bank and
Trust Company, East Dubuque Savings Bank, Fidelity Bank & Trust, First Community Trust, N.A. and Premier
Bank. The City is also serviced by branch offices of Liberty Bank, FSB, State Central Bank and US Bank N.A., as
well as several credit unions.
American Trust and Savings Bank, Dubuque Bank and Trust Company,
Bank report the following deposits as of December 31st for each year:
Year
2005
2006
2007
2008
2009
American Trust
And Savings Bank
$570,883,000
641,463,000
655,032,000
708, 594,000
711,573,000
Source FDIC Institution Directory website
FINANCIAL STATEMENTS
The City's Comprehensive Annual Ft
APPENDIX B. The City's certified pub
statements and has not and Az �,�a� ., dded
performance and copies
City's Financial Advis
Dubuque Bank and E4, buque
Trust Company s Bank
$608,688,000 Sit ;.987,000
636,489,000 1;»O4 000
670,219,000 169,6 Q0O
749,192, 00 162,68 :j0
864,067,000 .171,170,0
25
Total Retail
Sales
$939,637,286
1,429,769,919
40,982,153,709
Retail Sales
Per Household
$40,369
39,274
34,215
Uhique Savings Bank and Premier
Premix Bank
$13 8;5,000
161,7641000
166, 891,000
186,858,000
213,076,000
r the fiscal year ended June 30, 2009 is reproduced in
has not consented to distribution of the audited financial
entation,— Further information regarding financial
Financial Reports may be obtained from the
APPENDIX A
FORMS OF LEGAL OPINIONS
AHLERS &COONEY. P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE 515 - 243 -7611
FAX 515 - 243 -2149
WWW AHLERSLAW COM
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, Iowa (the
"Issuer "), relating to the issuance of General Obligation Bonds, Senes 201 OA, by said
City, dated the date of delivery, in the denomination of $5,000 or multiples thereof, in the
aggregate amount of $4,470,000 (the "Bonds")
We have examined the law and such certified proceedings and other papers as we
deem necessary to render this opimon as bond counsel
As to questions of fact material to our opinion, we have relied upon
representations of the Issuer contained m 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
We have not been engaged to or undertaken to review the accuracy, completeness
or sufficiency of the preliminary Official Statement dated July 26, 2010, the Final
Official Statement dated , 2010, or any other offering material relating to the
Bonds, and we express no opinion relating thereto
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opimon, under existing law, as follows
1 The Issuer is duly created and validly existing as a body corporate and
politic and political subdivision of the State of Iowa with the corporate power to adopt
and perform the Resolution and issue the Bonds
2 The Bonds are valid and binding general obligations of the Issuer
3 All taxable property in the territory of the Issuer is subject to ad valorem
taxation without limitation as to rate or amount to pay the Bonds Taxes have been levied
by the Resolution for the payment of the Bonds and the Issuer is required by law to
include in its annual tax levy the principal and mterest coming due on the Bonds to the
extent the necessary funds are not provided from other sources
WISHA RD & BAILY- 1888, GUERNSEY& BAILY- 1893, BAILY& STIPP- 1901, STIPP, PERRY, BANNISTER & STARZIN GER- 1914, BANNISTER, CARPENTER,
AHLERS & COONEY -1950 AHLERS COONEY DORWEILER ALLBEE HAYNIE &SMITH- 1974 AHLERS COONEY DORWEILER HAYNIE SMITH & ALLIEE PC
Dubuque. Iowa
$4.470.000 General Obligation Bonds
Series 2010A
Page 2
4. The interest on the Bonds is excluded from gross income for federal income
tax purposes and interest on the Bonds is not an item of tax preference for purposes of the
federal alternative minimum tax imposed on individuals and corporations: however, with
respect to corporations (as defined for federal income tax purposes), such interest is
included in adjusted current earnings for the purpose of determining the alterative
minimum tax imposed on such corporations. We express no opinion regarding other
federal income tax consequences caused by the receipt or accrual of interest on the
Bonds.
For the purpose of rendering the opinion set forth in paragraph numbered 4 above,
we have assumed compliance by the Issuer with requirements of the Internal Revenue
Code of 1986, as amended, that must be met subsequent to the issuance of the Bonds in
order that interest thereon be and remain excluded from gross income for federal income
tax purposes. Failure to comply with such requirements could cause the interest on the
Bonds to be so included in gross income retroactive to the date of issuance of the Bonds.
The Issuer has covenanted to comply with such requirements.
It is to be understood that the rights of the holders of the Bonds and the
enforceability thereof 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 that their enforcement may also be
subject to the exercise of judicial discretion in appropriate cases.
662610 1 /Word\10422 109
Respectfully submitted.
AHLERS &COONEY. P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE 515 - 243 -7611
FAX 515 - 243 -2149
WWW AHLERSLAW COM
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, Iowa (the
"Issuer "), relating to the issuance of Taxable General Obligation Urban Renewal Bonds,
Series 201 OB, by said City, dated the date of delivery, in the denomination of $5,000 or
multiples thereof, m the aggregate amount of $2,675,000 (the 'Bonds ")
We have examined the law and such certified proceedings and other papers as we
deem necessary to render this opimon as bond counsel
As to questions of fact material to our opinion, we have relied upon
representations of the Issuer contained m 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
We have not been engaged to or undertaken to review the accuracy, completeness
or sufficiency of the preliminary Official Statement dated July 26, 2010, the Final
Official Statement dated , 2010, or any other offering material relating to the
Bonds, and we express no opinion relating thereto
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opimon, under existing law, as follows
1 The Issuer is duly created and validly existing as a body corporate and
politic and political subdivision of the State of Iowa with the corporate power to adopt
and perform the Resolution and issue the Bonds
2 The Bonds are valid and binding general obligations of the Issuer
3 All taxable property in the territory of the Issuer is subject to ad valorem
taxation without limitation as to rate or amount to pay the Bonds Taxes have been levied
by the Resolution for the payment of the Bonds and the Issuer is required by law to
include in its annual tax levy the principal and mterest coming due on the Bonds to the
extent the necessary funds are not provided from other sources
WISHA RD & BAILY- 1888, GUERNSEY& BAILY- 1893, BAILY& STIPP- 1901, STIPP, PERRY, BANNISTER & STARZIN GER- 1914, BANNISTER, CARPENTER,
AHLERS & COONEY -1950 AHLERS COONEY DORWEILER ALLBEE HAYNIE &SMITH- 1974 AHLERS COONEY DORWEILER HAYNIE SMITH & ALLIEE PC
Dubuque. Iowa
$2.675.000 Taxable General
Obligation Urban Renewal Bonds
Series 2010B
Page 2
4. The interest on the Bonds is not excluded from gross income for federal
income tax purposes under Section 103(a) of the Interval Revenue Code of 1986, as
amended. THE HOLDERS OF THE BONDS SHOULD TREAT THE INTEREST
THEREON AS SUBJECT TO FEDERAL INCOME TAXATION. We express no other
opinion regarding any other federal or state income tax consequences caused by the
receipt or accnlal of interest on the Bonds.
It is to be understood that the rights of the holders of the Bonds and the
enforceability thereof may be subject to banknlptcy, insolvency, reorganization,
moratorium and other similar laws affecting creditors' rights heretofore or hereafter
enacted to the extent constitutionally applicable and that their enforcement may also be
subject to the exercise of judicial discretion in appropriate cases.
662621 1 /MSWord\10422 109
Respectfully submitted.
AHLERS &COONEY. P.C.
100 COURT AVENUE, SUITE 600
DES MOINES, IOWA 50309 -2231
PHONE 515 - 243 -7611
FAX 515 - 243 -2149
WWW AHLERSLAW COM
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, Iowa (the
"Issuer "), relating to the issuance of General Obligation Urban Renewal Bonds, Series
201 0C, by said City, dated the date of delivery, in the denomination of $5,000 or
multiples thereof, m the aggregate amount of $2,825,000 (the 'Bonds ")
We have examined the law and such certified proceedings and other papers as we
deem necessary to render this opimon as bond counsel
As to questions of fact material to our opinion, we have relied upon
representations of the Issuer contained m 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
We have not been engaged to or undertaken to review the accuracy, completeness
or sufficiency of the preliminary Official Statement dated July 26, 2010, the Final
Official Statement dated , 2010, or any other offering material relating to the
Bonds, and we express no opinion relating thereto
Based on our examination and in reliance upon the certified proceedings and other
certifications described above, we are of the opimon, under existing law, as follows
1 The Issuer is duly created and validly existing as a body corporate and
politic and political subdivision of the State of Iowa with the corporate power to adopt
and perform the Resolution and issue the Bonds
2 The Bonds are valid and binding general obligations of the Issuer
3 All taxable property in the territory of the Issuer is subject to ad valorem
taxation without limitation as to rate or amount to pay the Bonds Taxes have been levied
by the Resolution for the payment of the Bonds and the Issuer is required by law to
include in its annual tax levy the principal and mterest coming due on the Bonds to the
extent the necessary funds are not provided from other sources
WISHA RD & BAILY- 1888, GUERNSEY& BAILY- 1893, BAILY& STIPP- 1901, STIPP, PERRY, BANNISTER & STARZIN GER- 1914, BANNISTER, CARPENTER,
AHLERS & COONEY -1950 AHLERS COONEY DORWEILER ALLBEE HAYNIE &SMITH- 1974 AHLERS COONEY DORWEILER HAYNIE SMITH & ALLIEE PC
Dubuque. Iowa
$2.825.000 General Obligation
Urban Renewal Bonds, Series 2010C
Page 2
4. The interest on the Bonds (a) is excludable from gross income of the
owners thereof for federal income tax purposes: (b) is not included as an item of tax
preference in computing the federal alternative minimum tax imposed on individuals and
corporations: and (c) is not taken into account in computing an adjustment used in
determining the federal alterative minimum tax for certain corporations. We express no
opinion regarding other federal income tax consequences caused by the receipt or accrual
of interest on the Bonds.
5. Interest on the Bonds is exempt from the taxes imposed by Division II
(Personal Net Income Tax) and Division III (Business Tax on Corporations) of Chapter
422 of the Code of Iowa, as amended (the "Iowa Code "): it should be noted, however,
that interest on the Bonds is required to be included in adjusted current earnings to be
used in computing the "state alterative minimum taxable income" of corporations and
financial institutions for purposes of Sections 422.33 and 422.60 of the Iowa Code.
Interest on the Bonds is subject to the taxes imposed by Division V (Taxation of
Financial Instihrtions) of Chapter 422 of the Iowa Code. We express no opinion
regarding other State tax consequences arising with respect to the Bonds.
For the purpose of rendering the opinion set forth in paragraph numbered 4 above,
we have assumed compliance by the Issuer with requirements of the Internal Revenue
Code of 1986, as amended, that must be met subsequent to the issuance of the Bonds in
order that interest thereon be and remain excluded from gross income for federal income
tax purposes. Failure to comply with such requirements could cause the interest on the
Bonds to be so included in gross income retroactive to the date of issuance of the Bonds.
The Issuer has covenanted to comply with such requirements.
It is to be understood that the rights of the holders of the Bonds and the
enforceability thereof 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 that their enforcement may also be
subject to the exercise of judicial discretion in appropriate cases.
662614 1 /Word\10422 109
Respectfully submitted.
APPENDIX B
JUNE 30, 2009 COMPREHENSIVE ANNUAL FINANCIAL REPORT
APPENDIX C
FORMS OF CONTINUING DISCLOSURE CERTIFICATES
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate ") is executed
and delivered by the City of Dubuque. Iowa (the "Issuer "). in connection with the
issuance of $4.470.000 General Obligation Bonds. Series 2010A (the "Bonds") dated the
date of deliver`. The Bonds are being issued pursuant to a Resolution of the Issuer
approved on . 2010 (the "Resolution "). The Issuer covenants and
agrees as follows:
SECTION 1. Purpose of the Disclosure Certificate. 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).
SECTION 2. Definitions. In addition to the definitions set forth in the Resolution.
which apply to any capitalized term used in this Disclosure Certificate unless otherwise
defined in this Section. the following capitalized terms shall have the following
meanings:
"Annual Report" shall mean any Annual Report provided 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.
"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.
"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.
CIG27.TXT
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board. 1900 Duke Street. Suite 600. Alexandria. VA 22314.
"National Repository" shall mean the MSRB's Electronic Municipal Market
Access website, a /k/a "EMMA ".
"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(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934. as the same may be amended
from time to time.
"State" shall mean the State of Iowa.
SECTION 3. Provision of Annual Reports.
(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 the report for the 2009/2010 fiscal
year. provide to the National Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Certificate.
The Annual Report must be submitted in such format as is required by the
MSRB (currently in searchable PDF format). The Annual Report may be
submitted as a single document or as separate documents comprising a
package. The Annual Report 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 Report and later than the date required above for
the filing of the Annual Report 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 an Annual
Report 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 the Annual Report with the National Repository: and
2
(if the Dissemination Agent is other than the Issuer), file a report
with the Issuer certifying that the Annual Report has been filed
pursuant to this Disclosure Certificate, stating the date it was filed.
SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain
or i ncorporate by reference the following:
(1) 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
the Annual Report is required to be filed pursuant to Section 3(a), the
Annual Report shall contain unaudited financial statements in a format
similar to the financial statements contained in the final Official Statement,
and the audited financial statements shall be filed in the same manner as the
Annual Report when they become available.
(2) Information prepared as of the end of the preceding fiscal year, of the type
contained in the final Official Statement under the captions "City Property
Values ". "Debt Limit ". "Direct Debt ". "Other Debt ". "Indirect General
Obligation Debt ". "Levies and Collection ", and "Tax Rates ".
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public
entities, which have been filed with the National Repository. The Issuer shall clearly
identify each such other document so included by reference.
SECTION 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5. the Issuer shall give, or cause
to be given, notice of the occurrence of any of the following events with
respect to the Bonds, if material:
(1) principal and interest payment delinquencies:
(2) non- payment related defaults:
3
(3) unscheduled draws on debt service reserves reflecting financial
difficulties:
(4) unscheduled draws on credit enhancements reflecting financial
difficulties:
(5) substitution of credit or liquidity providers. or their failure to
perform:
(6) adverse tax opinions or events affecting the tax - exempt status of the
security:
(7) modifications to rights of security holders:
(8) bond calls:
(9) defeasances:
(10) release. substitution. or sale of property securing repayment of the
securities: and
(11) rating changes.
(b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event. the Issuer shall as soon as possible determine if such event would be
material under applicable federal securities laws.
(c) If the Issuer determines that knowledge of the occurrence of a Listed Event
would be material under applicable federal securities laws. the Issuer shall
promptly file a notice of such occurrence with the Municipal Securities
Rulemaking Board through the filing with the National Repository.
Notwithstanding the foregoing. notice of Listed Events described in
subsections (a) (8) and (9) need not be given under this subsection any
earlier than the notice (if any) of the underlying event is given to Holders of
affected Bonds pursuant to the Resolution.
SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under
this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or
payment in full of all of the Bonds 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
4
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. If
such termination occurs prior to the final maturity of the Bonds, the Issuer shall give
notice of such termination in the same manner as for a Listed Event under Section 5(c).
SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or
engage a Dissemination Agent to assist it in carrying out its obligations under this
Disclosure Certificate, and may discharge any such Agent, with or without appointing a
successor Dissemination Agent. The Dissemination Agent shall not be responsible in any
manner for the content of any notice or report prepared by the Issuer pursuant to this
Disclosure Certificate. The initial Dissemination Agent shall be the Issuer.
SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any
provision of this Disclosure Certificate may be waived, provided that the following
conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Section 3(a). 4, or
5(a), it may only be made in connection with a change in circumstances that
arises from a change in legal requirements, change in law, or change in the
identity, nature or status of an obligated person with respect to the Bonds,
or the type of business conducted;
(b) The undertaking, as amended or taking into account such waiver, would, in
the opinion of nationally recognized bond counsel, have complied with the
requirements of the Rule at the time of the original issuance of the Bonds,
after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances; and
(c) The amendment or waiver either (i) is approved by the Holders of the
Bonds in the same manner as provided in the Resolution for amendments to
the Resolution with the consent of Holders, or (ii) does not, in the opinion
of nationally recognized bond counsel, materially impair the interests of the
Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the
Issuer shall describe such amendment in the next Annual Report, 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
5
manner as for a Listed Event under Section 5(c), and (ii) the Annual Report 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 p rinciples.
SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall
be deemed to prevent the Issuer from disseminating any other information, using the
means of dissemination set forth in this Disclosure Certificate or any other means of
communication, or including any other information in any Annual Report 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 Report 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 Report or notice of occurrence
of a Listed Event.
SECTION 10. Default. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds
may take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the Issuer to comply with its obligations
under this Disclosure Certificate. Direct, indirect, consequential and punitive damages
shall not be recoverable by any person for any default hereunder and are hereby waived
to the extent permitted by law. A default under this Disclosure Certificate shall not be
deemed an event of default under the Resolution, and the sole remedy under this
Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance.
SECTION 11. Duties. Immunities and Liabilities of Dissemination 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.
6
SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the
benefit of the Issuer. the Dissemination Agent. the Participating Underwriters and
Holders and Beneficial Owners from time to time of the Bonds. and shall create no rights
in any other person or entity.
ATTEST:
By:
Date:
City Clerk
day of . 2010.
CITY OF DUBUQUE. IOWA
By:
Mayor
7
Dated: day of
662609 1 /Word \10-122 109
EXHIBIT A
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Dubuque. Iowa.
Name of Bond Issue: $4.470.000 General Obligation Bonds, Series 2010A
Dated Date of Issue: the date of delivery
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report
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 Report will be filed by
CITY OF DUBUQUE, IOWA
By:
Its:
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 $2.675.000 Taxable General Obligation Urban Renewal Bonds. Series 2010B
(the "Bonds") dated the date of deliver`. The Bonds are being issued pursuant to a
Resolution of the Issuer approved on . 2010 (the "Resolution ").
The Issuer covenants and agrees as follows:
SECTION 1. Purpose of the Disclosure Certificate. 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).
SECTION 2. Definitions. In addition to the definitions set forth in the Resolution,
which apply to any capitalized term used in this Disclosure Certificate unless otherwise
defined in this Section. the following capitalized terms shall have the following
meanings:
"Annual Report" shall mean any Annual Report provided 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.
"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.
"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.
CIG27.TXT
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board. 1900 Duke Street. Suite 600. Alexandria. VA 22314.
"National Repository" shall mean the MSRB's Electronic Municipal Market
Access website, a /k/a "EMMA ".
"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(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934. as the same may be amended
from time to time.
"State" shall mean the State of Iowa.
SECTION 3. Provision of Annual Reports.
(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 the report for the 2009/2010 fiscal
year. provide to the National Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Certificate.
The Annual Report must be submitted in such format as is required by the
MSRB (currently in searchable PDF format). The Annual Report may be
submitted as a single document or as separate documents comprising a
package. The Annual Report 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 Report and later than the date required above for
the filing of the Annual Report 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 an Annual
Report 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 the Annual Report with the National Repository: and
2
(if the Dissemination Agent is other than the Issuer), file a report
with the Issuer certifying that the Annual Report has been filed
pursuant to this Disclosure Certificate, stating the date it was filed.
SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain
or i ncorporate by reference the following:
(1) 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
the Annual Report is required to be filed pursuant to Section 3(a), the
Annual Report shall contain unaudited financial statements in a format
similar to the financial statements contained in the final Official Statement,
and the audited financial statements shall be filed in the same manner as the
Annual Report when they become available.
(2) Information prepared as of the end of the preceding fiscal year, of the type
contained in the final Official Statement under the captions "City Property
Values ". "Debt Limit ". "Direct Debt ". "Other Debt ". "Indirect General
Obligation Debt ". "Levies and Collection ", and "Tax Rates ".
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public
entities, which have been filed with the National Repository. The Issuer shall clearly
identify each such other document so included by reference.
SECTION 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5. the Issuer shall give, or cause
to be given, notice of the occurrence of any of the following events with
respect to the Bonds, if material:
(1) principal and interest payment delinquencies:
(2) non- payment related defaults:
3
(3) unscheduled draws on debt service reserves reflecting financial
difficulties:
(4) unscheduled draws on credit enhancements reflecting financial
difficulties:
(5) substitution of credit or liquidity providers. or their failure to
perform:
(6) adverse tax opinions or events affecting the tax - exempt status of the
security:
(7) modifications to rights of security holders:
(8) bond calls:
(9) defeasances:
(10) release. substitution. or sale of property securing repayment of the
securities: and
(11) rating changes.
(b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event. the Issuer shall as soon as possible determine if such event would be
material under applicable federal securities laws.
(c) If the Issuer determines that knowledge of the occurrence of a Listed Event
would be material under applicable federal securities laws. the Issuer shall
promptly file a notice of such occurrence with the Municipal Securities
Rulemaking Board through the filing with the National Repository.
Notwithstanding the foregoing. notice of Listed Events described in
subsections (a) (8) and (9) need not be given under this subsection any
earlier than the notice (if any) of the underlying event is given to Holders of
affected Bonds pursuant to the Resolution.
SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under
this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or
payment in full of all of the Bonds 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
4
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. If
such termination occurs prior to the final maturity of the Bonds, the Issuer shall give
notice of such termination in the same manner as for a Listed Event under Section 5(c).
SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or
engage a Dissemination Agent to assist it in carrying out its obligations under this
Disclosure Certificate, and may discharge any such Agent, with or without appointing a
successor Dissemination Agent. The Dissemination Agent shall not be responsible in any
manner for the content of any notice or report prepared by the Issuer pursuant to this
Disclosure Certificate. The initial Dissemination Agent shall be the Issuer.
SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any
provision of this Disclosure Certificate may be waived, provided that the following
conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Section 3(a). 4, or
5(a), it may only be made in connection with a change in circumstances that
arises from a change in legal requirements, change in law, or change in the
identity, nature or status of an obligated person with respect to the Bonds,
or the type of business conducted;
(b) The undertaking, as amended or taking into account such waiver, would, in
the opinion of nationally recognized bond counsel, have complied with the
requirements of the Rule at the time of the original issuance of the Bonds,
after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances; and
(c) The amendment or waiver either (i) is approved by the Holders of the
Bonds in the same manner as provided in the Resolution for amendments to
the Resolution with the consent of Holders, or (ii) does not, in the opinion
of nationally recognized bond counsel, materially impair the interests of the
Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the
Issuer shall describe such amendment in the next Annual Report, 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
5
manner as for a Listed Event under Section 5(c), and (ii) the Annual Report 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 p rinciples.
SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall
be deemed to prevent the Issuer from disseminating any other information, using the
means of dissemination set forth in this Disclosure Certificate or any other means of
communication, or including any other information in any Annual Report 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 Report 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 Report or notice of occurrence
of a Listed Event.
SECTION 10. Default. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds
may take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the Issuer to comply with its obligations
under this Disclosure Certificate. Direct, indirect, consequential and punitive damages
shall not be recoverable by any person for any default hereunder and are hereby waived
to the extent permitted by law. A default under this Disclosure Certificate shall not be
deemed an event of default under the Resolution, and the sole remedy under this
Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance.
SECTION 11. Duties. Immunities and Liabilities of Dissemination 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.
6
SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the
benefit of the Issuer. the Dissemination Agent. the Participating Underwriters and
Holders and Beneficial Owners from time to time of the Bonds. and shall create no rights
in any other person or entity.
ATTEST:
By:
Date:
City Clerk
day of . 2010.
CITY OF DUBUQUE. IOWA
By:
Mayor
7
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Dubuque. Iowa.
Name of Bond Issue: $2.675.000 Taxable General Obligation Urban Renewal Bonds,
Series 2010B
Dated Date of Issue: the date of delivery
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report
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 Report will be filed by
Dated: day of
662619 1 /ISWord\10422 109
EXHIBIT A
CITY OF DUBUQUE, IOWA
By:
Its:
CONTINUING DISCLOSURE CERTIFICATE
This Continuing Disclosure Certificate (the "Disclosure Certificate ") is executed
and delivered by the City of Dubuque. Iowa (the "Issuer "). in connection with the
issuance of $2.825.000 General Obligation Urban Renewal Bonds. Series 2010C (the
"Bonds") dated the date of deliver`. The Bonds are being issued pursuant to a Resolution
of the Issuer approved on . 2010 (the "Resolution "). The Issuer
covenants and agrees as follows:
SECTION 1. Purpose of the Disclosure Certificate. 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).
SECTION 2. Definitions. In addition to the definitions set forth in the Resolution,
which apply to any capitalized term used in this Disclosure Certificate unless otherwise
defined in this Section. the following capitalized terms shall have the following
meanings:
"Annual Report" shall mean any Annual Report provided 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.
"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.
"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.
CIG27.TXT
"Municipal Securities Rulemaking Board" or "MSRB" shall mean the Municipal
Securities Rulemaking Board. 1900 Duke Street. Suite 600. Alexandria. VA 22314.
"National Repository" shall mean the MSRB's Electronic Municipal Market
Access website, a /k/a "EMMA ".
"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(b)(5) adopted by the Securities and Exchange
Commission under the Securities Exchange Act of 1934. as the same may be amended
from time to time.
"State" shall mean the State of Iowa.
SECTION 3. Provision of Annual Reports.
(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 the report for the 2009/2010 fiscal
year. provide to the National Repository an Annual Report which is
consistent with the requirements of Section 4 of this Disclosure Certificate.
The Annual Report must be submitted in such format as is required by the
MSRB (currently in searchable PDF format). The Annual Report may be
submitted as a single document or as separate documents comprising a
package. The Annual Report 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 Report and later than the date required above for
the filing of the Annual Report 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 an Annual
Report 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 the Annual Report with the National Repository: and
2
(if the Dissemination Agent is other than the Issuer), file a report
with the Issuer certifying that the Annual Report has been filed
pursuant to this Disclosure Certificate, stating the date it was filed.
SECTION 4. Content of Annual Reports. The Issuer's Annual Report shall contain
or i ncorporate by reference the following:
(1) 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
the Annual Report is required to be filed pursuant to Section 3(a), the
Annual Report shall contain unaudited financial statements in a format
similar to the financial statements contained in the final Official Statement,
and the audited financial statements shall be filed in the same manner as the
Annual Report when they become available.
(2) Information prepared as of the end of the preceding fiscal year, of the type
contained in the final Official Statement under the captions "City Property
Values ". "Debt Limit ". "Direct Debt ". "Other Debt ". "Indirect General
Obligation Debt ". "Levies and Collection ", and "Tax Rates ".
Any or all of the items listed above may be included by specific reference to other
documents, including official statements of debt issues of the Issuer or related public
entities, which have been filed with the National Repository. The Issuer shall clearly
identify each such other document so included by reference.
SECTION 5. Reporting of Significant Events.
(a) Pursuant to the provisions of this Section 5. the Issuer shall give, or cause
to be given, notice of the occurrence of any of the following events with
respect to the Bonds, if material:
(1) principal and interest payment delinquencies:
(2) non- payment related defaults:
3
(3) unscheduled draws on debt service reserves reflecting financial
difficulties:
(4) unscheduled draws on credit enhancements reflecting financial
difficulties:
(5) substitution of credit or liquidity providers. or their failure to
perform:
(6) adverse tax opinions or events affecting the tax - exempt status of the
security:
(7) modifications to rights of security holders:
(8) bond calls:
(9) defeasances:
(10) release. substitution. or sale of property securing repayment of the
securities: and
(11) rating changes.
(b) Whenever the Issuer obtains the knowledge of the occurrence of a Listed
Event. the Issuer shall as soon as possible determine if such event would be
material under applicable federal securities laws.
(c) If the Issuer determines that knowledge of the occurrence of a Listed Event
would be material under applicable federal securities laws. the Issuer shall
promptly file a notice of such occurrence with the Municipal Securities
Rulemaking Board through the filing with the National Repository.
Notwithstanding the foregoing. notice of Listed Events described in
subsections (a) (8) and (9) need not be given under this subsection any
earlier than the notice (if any) of the underlying event is given to Holders of
affected Bonds pursuant to the Resolution.
SECTION 6. Termination of Reporting Obligation. The Issuer's obligations under
this Disclosure Certificate shall terminate upon the legal defeasance, prior redemption or
payment in full of all of the Bonds 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
4
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. If
such termination occurs prior to the final maturity of the Bonds, the Issuer shall give
notice of such termination in the same manner as for a Listed Event under Section 5(c).
SECTION 7. Dissemination Agent. The Issuer may, from time to time, appoint or
engage a Dissemination Agent to assist it in carrying out its obligations under this
Disclosure Certificate, and may discharge any such Agent, with or without appointing a
successor Dissemination Agent. The Dissemination Agent shall not be responsible in any
manner for the content of any notice or report prepared by the Issuer pursuant to this
Disclosure Certificate. The initial Dissemination Agent shall be the Issuer.
SECTION 8. Amendment; Waiver. Notwithstanding any other provision of this
Disclosure Certificate, the Issuer may amend this Disclosure Certificate, and any
provision of this Disclosure Certificate may be waived, provided that the following
conditions are satisfied:
(a) If the amendment or waiver relates to the provisions of Section 3(a). 4, or
5(a), it may only be made in connection with a change in circumstances that
arises from a change in legal requirements, change in law, or change in the
identity, nature or status of an obligated person with respect to the Bonds,
or the type of business conducted;
(b) The undertaking, as amended or taking into account such waiver, would, in
the opinion of nationally recognized bond counsel, have complied with the
requirements of the Rule at the time of the original issuance of the Bonds,
after taking into account any amendments or interpretations of the Rule, as
well as any change in circumstances; and
(c) The amendment or waiver either (i) is approved by the Holders of the
Bonds in the same manner as provided in the Resolution for amendments to
the Resolution with the consent of Holders, or (ii) does not, in the opinion
of nationally recognized bond counsel, materially impair the interests of the
Holders or Beneficial Owners of the Bonds.
In the event of any amendment or waiver of a provision of this Disclosure Certificate, the
Issuer shall describe such amendment in the next Annual Report, 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
5
manner as for a Listed Event under Section 5(c), and (ii) the Annual Report 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 p rinciples.
SECTION 9. Additional Information. Nothing in this Disclosure Certificate shall
be deemed to prevent the Issuer from disseminating any other information, using the
means of dissemination set forth in this Disclosure Certificate or any other means of
communication, or including any other information in any Annual Report 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 Report 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 Report or notice of occurrence
of a Listed Event.
SECTION 10. Default. In the event of a failure of the Issuer to comply with any
provision of this Disclosure Certificate, any Holder or Beneficial Owner of the Bonds
may take such actions as may be necessary and appropriate, including seeking mandate or
specific performance by court order, to cause the Issuer to comply with its obligations
under this Disclosure Certificate. Direct, indirect, consequential and punitive damages
shall not be recoverable by any person for any default hereunder and are hereby waived
to the extent permitted by law. A default under this Disclosure Certificate shall not be
deemed an event of default under the Resolution, and the sole remedy under this
Disclosure Certificate in the event of any failure of the Issuer to comply with this
Disclosure Certificate shall be an action to compel performance.
SECTION 11. Duties. Immunities and Liabilities of Dissemination 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.
6
SECTION 12. Beneficiaries. This Disclosure Certificate shall inure solely to the
benefit of the Issuer. the Dissemination Agent. the Participating Underwriters and
Holders and Beneficial Owners from time to time of the Bonds. and shall create no rights
in any other person or entity.
ATTEST:
By:
Date:
City Clerk
day of . 2010.
CITY OF DUBUQUE. IOWA
By:
Mayor
7
NOTICE TO NATIONAL REPOSITORY OF FAILURE TO FILE ANNUAL REPORT
Name of Issuer: City of Dubuque. Iowa.
Name of Bond Issue: $2.825.000 General Obligation Urban Renewal Bonds,
Series 2010C
Dated Date of Issue: the date of delivery
NOTICE IS HEREBY GIVEN that the Issuer has not provided an Annual Report
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 Report will be filed by
Dated: day of
662613 1 /Word\10422 109
EXHIBIT A
CITY OF DUBUQUE, IOWA
By:
Its:
OFFICIAL BID FORM
TO City Council of Sale Date August 2, 2010
City of Dubuque, Iowa 11 00 AM Central Time
RE $4,470,000* General Obligation Bonds, Series 2010A For all or none of the above Series 2010A in accordance with the
TERMS OF OFFERING, we will pay you $ (not less than $4,425,300) plus accrued
interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated years as follows
NET INTEREST COST $
TRUE INTEREST COST
Account Manager
Account Members
% due 2011
% due 2012
% due 2013
% due 2014
% due 2015
% due 2016
% due 2017
% due 2018
% due 2019
% due 2020
The foregoing offer is hereby accepted by and
August, 2010
Title Title
ted date 0, 2010)
% due 2021
% due 2022
% due 2023
% due 2024
% due 2025
% due 2026
%<d
% due 2030
Preliminary, subject to change The City reserves the right to increase �f ... crease the gregate pnn
amount of the 2010A Bonds Such change will be in increments of $5,006 ay in any of th,,,,:
maturities The purchase prices of the issue will be adjusted proportionately t ale y change in issue,
size
In making this offer we accept all of the terms and conditions of the TERMS OF OFFS` "1;`published in the Preliminary
Official Statement dated July 26, 2010 In the event of failure to deliver the Series 2010 > ads in accordance with the
TERMS OF OFFERING as printed in the Prelim Official Statement and made a part he ;': <.,we reserve the right to
withdraw our offer All blank spaces of this off nal and are not to be construed as an oion
Not as a part of our offer, the above quoted p .eing cony g, but only as an aid for the verification of the offer, we have
made the following computations
f the City Council of the City of Dubuque, Iowa this 2" day of
Attest By
*Preliminary, subject to change
TO City Council of Sale Date August 2, 2010
City of Dubuque, Iowa 11 00 AM Central Time
Attest
OFFICIAL BID FORM
RE $2,675,000* Taxable General Obligation Urban Renewal Bonds, Series 2010B For all or none of the above Series
2010B in accordance with the TERMS OF OFFERING, we will pay you $ (not less than
$2,648,250) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated
years as follows
% due 2012
% due 2013
% due 2014
% due 2015
% due 2016
% due 2017
% due 2018
% due 2019
% due 2020
% due 2021
The City reserves the right to increase or
Title Title
% due 202
% du'
case the ag gate princip
amount of the 2010B Bonds Such change will be in increments of $5,000 and ay be in any of the
maturities The purchase prices of the issue will be adjusted proportionately to f1 c change m issue
size
In making this offer we accept all of the terms and conditions of the TERMS OF OFFERIl: > ubhshed m the Preliminary
Official Statement dated July 26, 2010 In the event of failure to deliver the Series 2010B B' ":' >'''. in accordance with the
TERMS OF OFFERING as printed in the Prehmina • ficial Statement and made a part hereo reserve the right to
withdraw our offer All blank spaces of this offer . d and are not to be construed as : an omis.i'i
Not as a part of our offer, the above quoted pric: g contro m but only as an aid for the verification of the offer, we have
made the following computations
NET INTEREST COST $
TRUE INTEREST COST % 1 e m. date Aug 2010)
Account Manager
Account Members
% due 2022
% due 2023
% due 2024
% due 2025
% due 2026
The foregoing offer is hereby accepted by and one a e City Council of the City of Dubuque, Iowa this 2 day of
August, 2010
By
made the following computations
NET INTEREST COST $
TRUE INTEREST COST
Account Manager
Account Members
Not as a part of our offer, the above quoted prices
The foregoing offer is hereby accepted by and on
August, 2010
Attest
Title
% due 2012
% due 2013
% due 2014
% due 2015
% due 2016
% due 2017
% due 2018
% due 2019
% due 2020
% due 2021
OFFICIAL BID FORM
TO City Council of Sale Date August 2, 2010
City of Dubuque, Iowa 11 00 AM Central Time
RE $2,825,000* General Obligation Urban Renewal Bonds, Series 2010C For all or none of the above Series 2010C in
accordance with the TERMS OF OFFERING, we will pay you $ (not less than
$2,796,750) plus accrued interest to date of delivery for fully registered bonds bearing interest rates and maturing in the stated
years as follows
*Preliminary, subject to change The City reserves the right to increase or
amount of the 2010C Bonds Such change will be in increments of $5,000 an`
maturities The purchase prices of the issue will be adjusted proportionately to
size
In making this offer we accept all of the terms and conditions of the TERMS OF OFFERII,:ubhshed in the Preliminary
Official Statement dated July 26, 2010 In the event of failure to deliver the Series 2010C ` °';:; in accordance with the
TERMS OF OFFERING as printed in the Preliminary Official Statement and made a part here vif reserve the right to
withdraw our offer All blank spaces of this offer are rote al and are not to be construed as an omi .n<..
ut only as an aid for the verification of the offer, we have
date A
% due 2022
% due 2023
% due 2024
% due 2025
% due 2026
% due 2027
% due 20 11:;,.
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20"1
By
ehalf of
By
Title
ity Council of the City of Dubuque, Iowa this 2" day of
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2009
CITY OF DUBUQUE, IOWA
Prepared by:
Department of Finance
CITY OF DUBUQUE, IOWA
Table of Contents
Exhibit Pase
INTRODUCTORY SECTION
Table of Contents 1 -2
Letter of Transmittal 3 -10
City Organizational Chart 11
Officials 12
Certificate of Achievement for Excellence in Financial Reporting 13
FINANCIAL SECTION
Independent Auditor's Report 14 -15
Management's Discussion and Analysis 16 -23
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets 1 24 -25
Statement of Activities 2 26
Fund Financial Statements
Balance Sheet — Governmental Funds 3 27
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets 3 -1 28
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds 4 29
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4 -1 30
Statement of Net Assets — Proprietary Funds 5 31 -32
Statement of Revenues, Expenses, and Changes in Fund Net Assets
(Deficit) — Proprietary Funds 6 33
Statement of Cash Flows — Proprietary Funds 7 34 -35
Statement of Fiduciary Assets and Liabilities — Agency Funds 8 36
Notes to Financial Statements 37 -66
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds 67
Notes to Required Supplementary Information — Budgetary Reporting 68
Schedule of Funding Progress for the Retiree Benefit Plan 69
Combining Fund Statements
Combining Balance Sheet — Nonmajor Governmental Funds A -1 70 -71
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds A -2 72 -73
Combining Statement of Net Assets — Nonmajor Enterprise Funds B -1 74
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets — Nonmajor Enterprise Funds B -2 75
Combining Statement of Cash Flows — Nonmajor Enterprise Funds B -3 76 -77
Combining Statement of Net Assets — Internal Service Funds C -1 78
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets (Deficit) — Internal Service Funds C -2 79
Combining Statement of Cash Flows — Internal Service Funds C -3 80
Combining Statement of Changes in Assets and Liabilities — Agency Funds D -1 81
1
CITY OF DUBUQUE, IOWA
Table of Contents
Table Pase
STATISTICAL SECTION (Unaudited)
Statistical Section 82
Financial Trends
Net Assets by Component 1 83
Changes in Net Assets 2 84 -85
Fund Balances of Governmental Funds 3 86
Changes in Fund Balances of Governmental Funds 4 87
Revenue Capacity
Taxable and Assessed Value of Property 5 88
Property Tax Rates — Direct and Overlapping Governments 6 89
Principal Property Taxpayers 7 90
Property Tax Levies and Collections 8 91
Debt Capacity
Ratios of Outstanding Debt by Type 9 92
Ratios of General Bonded Debt Outstanding 10 93
Direct and Overlapping Governmental Activities Debt 11 94
Legal Debt Margin Information 12 95
Revenue Bond Coverage — Parking Bonds 13 96
Water and Sewer Receipt History 14 97
Water Meters by Rate Class 15 98
Largest Water and Sewer Customers 16 99
Demographic and Economic Information
Demographic and Economic Statistics 17 100
Principal Employers 18 101
Full -Time Equivalent City Government Employees by
Function /Department 19 102
Operating Information
Operating Indicators by Function /Program 20 103
Capital Asset Statistics by Function/Program 21 104
COMPLIANCE SECTION
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 .4 uditing Standards
105 -106
Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with
OMB Circular A -133 107 -108
Schedule of Expenditures of Federal Awards 109 -111
Notes to the Schedule of Expenditures of Federal Awards 112
Schedule of Findings and Questioned Costs 113 -116
THE CITY OF
Masterpiece on the Mississippi
December 21, 2009
Dubuque
M- America City
1 III1. ki
2007
Honorable Mayor, City Council Members, and
Citizens of the City of Dubuque
Service People Integrity Responsibility Innovation Teamwork
Finance Department
50 West 13th Street
Dubuque, Iowa 52001 -4805
Office (563) 5894133
Fax (563) 690 -6689
TTY (563) 690 -6678
financeecityofdubuque.org
www.cityofdubuque.org
The Comprehensive Annual Financial Report (CAFR) of the City of Dubuque, Iowa, for the
fiscal year ended June 30, 2009, is hereby submitted as required by various state and federal
regulations. Responsibility for both the accuracy of the data and the completeness and fairness of
the presentation, including all disclosures, rests with the City. 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.
State code 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 2009. 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 U.S. Office of
Management and Budget Circular A -133, Audits of States, Local Governments and Non - Profit
Organizations. Information related to this single audit, including the Schedule of Expenditures of
Federal Awards, findings and 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.
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 of Dubuque is financially accountable. 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, municipal airport, library, recreational
activities and cultural events. In addition to general government activities, the municipality owns
and operates enterprises for a water system, water pollution control facility, stormwater system,
3
parking facilities, refuse collection, and public transportation. Also, the governing body is
financially accountable for the operations of the Dubuque Library Board, Airport Commission,
Civic Center Commission, Cable TV Commission, Transit Board, and the Park and Recreation
Commission. These activities are not legally separate entities, and therefore, are included in the
reporting entity.
This report includes the Dubuque Metropolitan Area Solid Waste Agency (DMASWA) and
Dubuque Initiatives and Subsidiaries as a 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 of Dubuque
appoints a voting majority to the DMASWA governing board and operates the landfill Dubuque
Initiatives is organized to render service to service to the City Council of the City of Dubuque,
Iowa on matters of community interest, and in the event of dissolution, any assets or property of
the organization are transferred to the City. In 2009, the City of Dubuque guaranteed debt issued
by Dubuque Initiatives and Subsidiaries.
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 report of the independent auditors.
PROFILE OF THE CITY
The City of Dubuque is located on the Mississippi River in northeast Iowa, adjacent to the states
of Illinois and Wisconsin. Julien Dubuque 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 cable cars, Victorian architecture, and a Civil War era shot tower, to an enclosed
shopping mall, two casinos, one with a pari - mutuel dog and the Smithsonian affiliated National
Mississippi River Museum and Aquarium. The City of Dubuque currently has a land area of
29.94 square miles, and a census 2000 population of 57,686. 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.
Dubuque has a stable and diversified economic base and is the major tri -state retail center.
Dubuque ended the fiscal year with an unemployment rate of approximately 6.2 percent, equal to
the state unemployment rate, but lower than the national average of 9.5 %. The new IBM Service
Center plans to add 1300 IT jobs by December 2010.
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 mayor is elected to a four -year term. The council is
elected on a non - partisan basis. 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 for, among other things, setting policy, passing ordinances,
4
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
Development at the Port of Dubuque continues with an $80 million Diamond Jo Casino
entertainment expansion completed December 2008 and a $32 million expansion underway by
the National Mississippi River Museum and Aquarium. These projects join the already
completed developments in the Port of Dubuque including the McGraw -Hill Higher Education
office building, the LEED - certified remodeling of the former Adams facility by Durrant;
renovation of City -owned Dubuque Star Brewery by a private developer for office, restaurant,
and retail use and a new City parking ramp. A $60 million mixed use development is still
planned for the port.
Development of the Dubuque Industrial Center West continues with several business expansions,
including: Kendall/Hunt Publishing (80,000 square foot distribution center); Art's Way
Manufacturing; National Dentex; Giese Manufacturing; Dubuque Screw Products; Hormel Foods
(340,000 square foot food processing plant); Medline Industries (67,100 square foot office
building); ITC Development; Vanguard Countertops (30,200 square foot fabrication building);
and Theisen Supply. Many of these projects were completed in 2008 or 2009.
The Dubuque Technology Park on the south side of the City had three new facilities completed in
2007 which added 230 new jobs and $6,000,000 of capital investment. These facilities house
Kunkel Bounds and Associates, Sedgwick CMS, Straka Johnson Architects, and Entegee
Engineering.
Downtown development continues at a brisk pace with the following projects: $11 million
expansion by Cottingham and Butler, which adds 90 new jobs; the renovation of the former
Interstate Power Company headquarters, now the home of W.S. Live with over 100 new jobs for
the downtown; and a $1.5 million restoration of the historic German Bank building were
completed during 2008. A $6.2 million renovation project at the Carnegie Stout Public Library
is scheduled to be completed in April 2010.
The most recent major development in the Downtown was the January 2009 announcement that
IBM will be utilizing the former Roshek Building as the office for 1,300 new service center jobs.
The building was purchased by Dubuque Initiatives and is currently undergoing a $38 million
renovation. IBM has already taken possession of the top four floors (6 -9) and plans to reach their
employment goal by the end of 2010. The City is also planning the construction of another
downtown parking ramp to accommodate the influx of new downtown employees.
The IBM project has created a high demand for rental housing, as many of these new employees
will be recent college graduates. The City Council approved a Revitalization Strategy for the
Warehouse District in August 2007. The strategy defines six primary goals to be achieved in
rehabilitating the area. The revitalization is expected to amount to $200 million in investment
from private and public sectors over the next ten years. A master plan for the redevelopment of
5
the district was approved by the Council in February 2009. Planning has begun for the
infrastructure and parking needs anticipated by the redevelopment of these large brick structures
for mixed use purposes. The City is actively working with developers to expedite the
rehabilitation process in order to fill the critical housing need created by IBM. A 24 -unit
condominium project has begun at 40 -42 Main Street.
West end construction includes Horizon Development beginning construction in the fall of 2009
of a 43 -unit Senior Assisted Living Residence; Kluck Construction broke ground on two 24 -unit
market rate apartment buildings; and GTW Pennsylvania, Inc. received approval to build 216
two- bedroom market rate apartments near the Dubuque Industrial Center West. Eagle Rock
Construction has also begun construction of a 15 -unit townhouse development.
Construction has also begun on three new residential subdivisions. Pebble Cove #1 and #2,
located near the southwest corner of the Northwest Arterial, will provide 46 new building lots for
single and two - family homes. Three homes are currently underway there. English Ridge
subdivision, located east of the intersection of U.S. 20, will create 45 single - family lots. Ten
homes are completed or underway in that subdivision. A new subdivision named North Fork
Trails is under construction. One two -unit townhouse is currently under way. North Fork Trails
will provide 17 building lots for two - family homes and will incorporate sustainable land
management and building construction practices on an infill site.
Retail construction includes Walgreens opening a new north end store in August 2009 serving as
their third location in Dubuque and Holiday Inn Express opened their facility on the west side of
town. Demolition was completed on the former meat packing plant, opening 30 acres for future
retail development on the Highway 151/61 corridor. Nearly all of the materials from the former
facility have been recycled.
Other major construction projects include the University of Dubuque Chlapaty Recreation and
Wellness Center, which opened in the fall of 2008. In September 2008, Loras College also
proposed construction of the 32 dwelling unit Oaks Housing project on the north side of the
campus.
The operation of an expanded land -base Diamond Jo Casino in December, 2008 had a negative
impact on City revenue from the Mystique. However, a plan to address this impact was approved
by the City Council as part of the FY 2010 budget process.
The City continues to receive awards and recognition from a variety of sources including:
• 2008 Most Livable Small City in the U.S., by the U.S. Conference of Mayors;
• One of the 2009, 2008 & 2007 100 Best Communities for Young People, by America's
Promise Alliance for Youth;
• 2007 All- America City, by the National Civic League;
• Ranked 22nd among the "Top 25 Boomtowns" in the nation, by Inc. magazine in May
2007;
• 2006 Iowa Great Place, by the Iowa Department of Cultural Affairs Citizen Advisory
Board;
6
• Ranked 18th in nation in 2008's "Best Small Places for Business and Careers ", by
Forbes magazine.
• 2009 Economic Development Administration's "Excellence in Economic Development
Award for Excellence in Historic Preservation -led Strategies" for the IBM/Roshek
Building Project
• 2009 Best Business Retention & Expansion Program Award
• 2009 RelocateAmerica.com Top 100 Places to Live
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 citizens of Dubuque within
the budget guidelines set by the Mayor and City Council.
The Dubuque Regional Airport acquired 103 acres of land located between the two airport
runways as the first step in implementing the airport master plan. The land is required to support
the new airline terminal as depicted in the FAA approved Airport Layout Plan. This action has
lead to funding the preliminary design and site plan.
The City continues to implement components of the $38 million Drainage Basin Master Plan.
The $4 million West 32 Street Detention Basin Project and $32 million Bee Branch Creek
Restoration Project have involved significant property acquisitions and engineering design to
date.
Additionally, the City has begun a comprehensive study to provide added capacity for traffic flow
and improved connectivity between the western growth areas and the downtown area. Currently
the US 20 Corridor serves as the single primary route for east -west travel in the City.
Beginning in 2006, the Dubuque City Council identified Green City Designation as one of its top
priorities. Since then, many initiatives have been underway to make Dubuque a more sustainable
community. The City is in the process of completing several projects that will help it achieve the
Council's goal. These include participation in the Sustainable Design Assessment Team
program, preparation of the Unified Development Code, completion of a green resource and
energy use profile, and a variety of neighborhood -based green initiatives.
IBM and the City of Dubuque announced in September 2009 a new collaboration aimed at
making this community one of the first "smarter" sustainable cities in the U.S. The goal of this
collaboration is to develop and pilot a systematic mechanism to give consumers and businesses
the information they need to make informed decisions about how they consume resources like
electricity, water, natural gas, and oil
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 citizens through neighborhood vitality. The City staff will work to
implement the City Council's vision that Dubuque is a "Masterpiece on the Mississippi." A
7
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:
• Diverse, Strong Dubuque Economy
• Sustainable City
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity: Transportation and Telecommunications
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. The internal controls are
designed to provide reasonable, but not absolute, assurance that these objectives are met. The
concept of reasonable assurance recognizes that: (1) the cost of a control should not exceed the
benefits likely to be derived; and (2) the valuation of costs and benefits requires estimates and
judgments by management.
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. The results
of the government's single audit for the fiscal year ended June 30, 2009, provided no instances of
material weaknesses in internal control over compliance, or significant violations of 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 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.
8
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 $3,122,467 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. Accordingly, deposits were either covered by federal
depository insurance or collateralized. All collateral on uninsured deposits were held either by
the State Treasurer, the government, its agent, or a financial institution's trust department in the
government's name All of the investments subject to risk categorization were classified in the
category of lowest credit risk as defined by the Governmental Accounting Standards Board. The
non - classified investments include mutual funds.
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.
Worker's compensation coverage up to $450,000 for each accident is provided through self -
insurance. The accumulated reserve provision for such claims reflected a $419,230 deficit as of
June 30, 2009. Provision for three large claims were accrued at fiscal year end with funds to
cover payment available in next fiscal year. 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 $2,910,972 as of June 30, 2009. All self - insured health plans are certified as
actuarially sound and certificates of compliance have been filed with the State of Iowa.
Bond Rating. The rating for the City's outstanding general obligation bonded debt was
upgraded by Moody's Investors Service to "Aa2" from a previous rating of "Aa3" in September
2003. This upgrade was due in part to the City's sound financial position, anticipated growth of
the City's tax base, and low overall debt burden. The rating was continued for bonds issued since
2003.
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, 2008. This was the 21 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. 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.
9
The Government Finance Officers Association of the United States and Canada (GFOA) awarded
a Certificate of Recognition for Budget Preparation to the City of Dubuque, Iowa, for its annual
budget for the fiscal year ended June 30, 2009. In addition, we received the award for the fiscal
year ending June 30, 2010. 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 4 consecutive year that the City
has achieved this prestigious award. This award is valid for a period of one year.
The City of Dubuque submitted its investment policy to the Association of Public Treasurers of
the United States and Canada for review and recertification during fiscal year ended June 30,
2009. The City was awarded the Certification of Excellence in July 2009.
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,
q6..„.,„vbk_d :12J_,
Michael C. Van Milligen Kenneth J. TeKippe, CPA
City Manager Finance Director
10
4/22/09
Civic Center
Park
Recreation
CITY OF DUBUQUE ORGANIZATIONAL CHART
City Attorney
Library
Assistant City Manager (2)
Personnel Manager
Training and Workforce Development Coordinator
Budget Director
Assistant Budget Director
CITY COUNCIL
CITY MANAGER
Building Economic Emergency Finance Fire
Services Development Communications Department Department
Department Department
Emergency
Parking System Management
Transit Division
City Clerk
Airport
Public Information Officer
Cable TV Geographic Communications
Information Assistant
Systems
Neighborhood Development
Sustainable Community Coordinator
I 1 I
Health Housing & Human Information
Services Community Rights Services
Department Development Department Department
Department
Leisure Services Public Works Planning Police Engineering Water Water Pollution
Department Department Services Department Department Department Control
Department Department
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2009
CITY COUNCIL
Roy D. Buol
Richard W. Jones
David T. Resnick
Kevin J. Lynch
Karla A. Braig
Joyce E. Connors
Dirk N. Voetberg
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry a Lindahl
Crenna M. Brumwell -Sahm
James A. O'Brien
Jeanne F. Schneider
DEPARTMENT MANAGERS
Robert A. Grierson
Therese H. Goodmann
Cynthia Al. Steinhauser
Jenny M. Larson
Richard R. Russell
David J. Heiar
Kenneth J. TeKippe
E. Daniel Brown
1\Iary Rose Corrigan
David W. Harris, Jr.
Kelly R. Larson
Randall K. Peck
Christine A. Kohlmann
Gil D. Spence
Susan A. Henricks
Donald J. Vogt
Laura B. Carstens
Terrence N. Tobin
Gus N. Psihoyos
Robert M. Green
Jonathan R. Brown
Mayor
Council Member — At Large
Council Member — At Large
Council Member — 1 Ward
Council Member — 2n Ward
Council Member — 3' Ward
Council Member — -4 Ward
City Manager
City Attorney
Assistant City Attorney
Assistant City Attorney
City Clerk
Airport Manager
Assistant City 1\lanager
Assistant City Manager
Budget Director
Building Services Manager
Economic Development Director
Finance Director
Fire Chief
Health Services Manager
Housing and Community Development Manager
Human Rights Director
Personnel Manager
Information Services Manager
Leisure Services Manager
Library Director
Public Works Director
Planning Services Manager
Acting Police Chief
Public Works Director
Water Department Manager
Water Pollution Control Plant 1\lanager
12
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2008
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
44
Executive Director
13
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
EideBailly.
CPAs & BUSINESS ADVISORS
INDEPENDENT AUDITOR'S REPORT
We have audited the accompanying financial statements of the governmental activities, the busmess -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,
2009, which collectively compnse the City's basic financial statements listed m the table of contents
These financial statements are the responsibility of the management of the City of Dubuque, Iowa Our
responsibility is to express opinions on these financial statements based on our audit We did not audit the
financial statements of Dubuque Imtiatives and Subsidiaries (a discretely presented component unit)
Those financial statements were audited by other auditors whose reports thereon have been furmshed to
us, and our opinion, msofar as it relates to the amounts mcluded for Dubuque Imtiatives and Subsidiaries,
is based on the reports of the other auditors
We conducted our audit in accordance with auditing standards generally accepted m the Umted States of
Amenca and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the Umted States Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of matenal
misstatement The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented
component unit, were not audited m accordance Government Auditing Standards An audit mcludes
exanuning, on a test basis, evidence supporting the amounts and disclosures in the financial statements
An audit also mcludes assessing the accountmg principles used and the sigmficant estimates made by
management, as well as evaluating the overall financial statement presentation We believe our audit
provides a reasonable basis for our opinions
In our opinion, the financial statements referred to above present fairly, in all matenal 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 mformation of
the City of Dubuque, Iowa, as of June 30, 2009, and the respective changes m financial position and cash
flows, where applicable, for the year then ended m conformity with accounting principles generally
accepted m the Umted States of Amenca
In accordance with Government Auditing Standards, we have also issued our report dated December 21,
2009, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters The purpose of that report is to descnbe the scope of our testing of mternal control over financial
reportmg and compliance and the results of that testmg, and not to provide an opinion on the mternal
control over financial reporting or on compliance That report is an integral part of an audit performed m
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit
PEOPLE. PRINCIPLES. POSSIBILITIES. 14
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, Iowa 52002-2273 I Phone 563.556.17901 Fox 563.557.78421 EOE
Management's discussion and analysis and other required supplementary information, listed in the table
of contents, are not required parts of the basic financial statements, but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements of the City of Dubuque, Iowa. 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 basic financial statements. The accompanying
Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required
by U.S. Office of Management and Budget (OMB) Circular A -133, Audits of States, Local Governments,
and Non - Profit Organizations, and is also not a required part of the basic financial statements of the City
of Dubuque, Iowa. The combining nonmajor fund financial statements and the Schedule of Expenditures
of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken 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 express
no opinion on them.
Dubuque, Iowa
December 21, 2009
/ZL-e-, A LT
15
CITY OF DUBUQUE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2009
This section of the City of Dubuque annual financial report presents our discussion and
analysis of the City's financial performance during the fiscal year that ended on June 30,
2009. 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 assets of the City of Dubuque exceeded its liabilities at the close of the fiscal
year by $454,310,322 (net assets). This was an increase of $236,420 over net
assets at June 30, 2008. Unrestricted net assets at June 30, 2009 in the amount of
$7,040,410 may be used to meet the City's ongoing obligations to citizens and
creditors.
• The expenditures of the general fund exceeded revenues by $3,209,947.
• The ending general fund balance was $19,070,882.
• Within the City's business -type activities, revenues exceeded expenses and
transfers by $26,592,682.
• For the year, the expenses and transfers of the City's governmental activities
exceeded revenues by $26,356,252.
• The City's debt increased by $11,415,061 due to issuance of new debt exceeding
principal payments.
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 assets presents information on all of the City's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or
decreases in net assets 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
16
consider additional non- financial factors such as changes in the City's property tax base
and the condition of the City's infrastructure.
The statement of activities presents information showing how the City's net assets
changed during the most recent fiscal year. All changes in net assets 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 vacation leave.
The government -wide financial statements include not only the City itself (known as the
primary government), but also two other legally separate entities, the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA) and Dubuque Initiatives (DI) and
Subsidiaries, for which the City of Dubuque is considered financially accountable.
Financial information for DMASWA and DI are reported separately from the financial
information presented for the primary government. The Dubuque Metropolitan Area
Solid Waste Agency and Dubuque Initiatives and Subsidiaries issue separate financial
statements.
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 the City in this category include water, sewer, storm water, refuse,
parking, transit and 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 fiends, proprietary finds, and fiduciary funds.
Governmental fiords. 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.
17
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.
The City maintains five 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 find,
employee benefits find, street construction fund, and community development 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
non -major 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 fiords. 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, refuse utilities and for transit, parking, 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 general /engineering service, garage service,
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 fiords. 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 two fiduciary funds, an agency fund reporting resources
held for the Dubuque Racing Association for improvements at the greyhound racing
facility and an agency fund used for reporting resources from XIediacom for purchasing
equipment relevant to public, educational and governmental (PEG) access broadcasting.
Notes to the financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government -wide and fund
financial statements.
Required supplementary information. In addition to the basic financial statements and
accompanying notes, this report also presents certain required supplementary information
concerning the budget and actual results of the City and the funding progress for the
retiree benefit plan.
18
Other information. The combining statements referred to earlier in connection with non -
major governmental funds, non -major enterprise funds, and internal service funds, as well
as an individual agency fund statement, are presented immediately following the required
supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets. As noted earlier, net assets may serve as a useful indicator of a government's
financial position when observed over time. In the case of the City, assets exceeded
liabilities by $454,310,322 at the close of the most recent fiscal year.
The largest part of the City's net assets (92.3°0 reflects its investment in capital assets
such as land, buildings, infrastructure, machinery, and equipment less any related debt
used to acquire those assets that are still outstanding. Increase in capital assets is due
primarily to the capitalization of the Port of Dubuque Parking Ramp in 2009. These
capital assets are used to provide services to the citizens and are not available for future
spending.
Current and other assets
Capital assets
Total assets
Long -term liabilities
Other liabilities
Net assets
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
CITY OF DUBUQUE'S NET ASSETS
Governmental Activities
)009
$ 82,013,145
320,588,664
402,601,809
54,942,748
'6,913,307
Total liabilities 81,856,055
2008
$ 97,492,862
3
423,104,449
50,451,804
75 550,629
76,002,433
Business -type Activities
2009
$ 16,750,708
139,030,639
155,781 347
20,751,447
1,465332
22,216,779
2008
$ 13,705 545
107,186,474
120,892,019
12,817,868
1,102,265
13,920,133
2009
$ 98,763,853
45
558383,156
75,694,1
28378,63
104,07
70 8,855346 296,143,451 120,473,286 95,104,575 419328,632 3
7 7,171,123 31 970,774 770,157 554,505 T7,941, 37,575,770
(5,280,715) 18,987,841 12,321,125 11,312,806 7,040,410 30300,647
$ 320,745,754 $ 347,102,016 $ 133,564,568 $ 106,971,886 $ 454,310,322 $ 454,073,902
A portion of the City's net assets (6.2 °o) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of net assets (1.5°0 may be
used to meet the City's ongoing obligations to citizens and creditors.
At the close of fiscal years 2009 and 2008, the City is able to report positive balances in
all three categories of net assets, both for the government as a whole and business -type
activities. The only deficit balance reported is in the governmental activities unrestricted
category.
Total
19
2008
$ 111,198,407
432,798,061
543 9
63,269,67
) 6,6 57 .894
80 077 566
Governmental activities. The Governmental activities decreased in the net assets by
$26,356,262 in 2009 due to the transfer of the Port of Dubuque Parking Ramp to
Business Type Activities while the related TIF debt remains in government activities.
Taxes are the largest source of governmental revenues with property taxes of
$23,716,819 in 2009. Other governmental revenues included gaming of $9,627,391, local
option sales taxes of $7,649,853, and $10,314,274 of charges for services. Governmental
expenses during 2009 totaled $76,889,080. The largest programs were public safety of
$22,038,265, public works of $19,079,688, community and economic development of
$12,693,140 and culture and recreation of $12,640,716.
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES,
EXPENSES, AND CHANGES IN NET ASSETS
Governmental Activities Business -type Activities Total
2009 2008 2009 2008 2009 2008
Revenues
Program revenues
Charges for services $ 10314,274 $ 9.643,066 $ 18,809,520 $ 17,176,090 $ 29,123,794 $ 26,819,156
Operating grants and contnbutions 12.599.967 11,709,123 1,095,946 1,209,636 13,695,913 12 918,759
Capital grants and contnbutions 4,811,729 8,032,602 3,613,321 2,830263 8,425,050 10,862,865
General revenues
Property taxes 23,716,819 2? 744,563 - - 23,716,819 22,744,563
Local option sales tax 7,649,853 8,020,889 - - 7,649,853 8,020,889
Hotel /motel tax 1,611 954 1,622,455 - - 1,611 954 1,622,455
Utility franchise fees 1,486.292 1,516,123 - - 1,486,292 1,516,123
Gaming 9,627,391 15 346,468 - - 9,6 15346,468
Unrestricted investment earnings ? 215,413 )741,49 433,148 630,049 2.648,561 3371,548
Gain on sale of capital assets 407,503 9?525 2,304 11,736 409,807 104,261
Other 918,605 898,241 918,605 898,241
Total revenues 75,359,800 82,367,554 23,954,239 21,857,774 99314,039 104,225,328
Expenses
Public safety 2? 038,265 10,90°,210 - - 22,038,265 10,90°,210
Public works 19,079,688 18,847,068 - - 19,079,688 18,847,068
Health and social services 849,237 800,566 - - 849,237 800,566
Culture and recreation 12,640,716 10,857,409 - - 12.640,716 10,857,409
Community and economic
development 12,693,140 11 961,584 - - 12,693,140 11 961,584
General government 6,423,908 5,804,003 - - 6,423 908 5,804,003
Interest on long -term debt 3,164,126 2,577,417 - - 3,164,126 2,577,417
Sewage disposal works - 6326,708 6,141,524 6326,708 6,141,524
Water utility - - 6,100,491 4,814,692 6,100,491 4,814,692
Stormwater utility - - 2,138,198 1,706,735 2,138,198 1,706,735
Parking facilities - - 2,147,405 2,173,110 2,147,405 2,173,110
Amenca's River Project - - 61,9 126,699 61,9 126,699
Refuse collection - - 2,788,665 2,724,050 2,788,665 2,724,050
Transit system - 2,625,145 2,703,983 2.625,145 2,703,983
Total expenses 76,889,080 67,814,257 22,188,539 20,390,793 99,077,619 88,205,050
Increase in net assets before
transfers (1,529,280) 14,553,297 1,765,700 1,466,981 236,420 16,020,278
Transfers (24,826.982) (2,252,1 24,826982 7,757,155
Increase( decrease) m net assets (26,356,262) 12301,142 26,59 3,719,136 236.420 16,020,278
Net assets, beginning 347,102,016 334,800,874 106,971,886 103,25 454,073,902 438,053,624
Net assets, ending $ 320,745,754 $ 347,102,016 $ 133,564,568 $ 106,971,886 $ 454,310,322 $ 454,073,902
20
Business -type activities. Business type activities increased net assets by $26.592.682,
primarily due to the Port of Dubuque Parking Ramp transfer, while the City's net assets
increased by $236,420 at June 30, 2009.
FINANCIAL ANALYSIS OF THE GOVERNMENT'S FUNDS
Governmental finds. 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. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
The City's governmental funds reported a combined fund balance of $50,381,341 at June
30, 2009. A portion of the fund balance is reserved and not available for new spending
because it has already been committed for encumbrances, endowments, and debt service
and state statute restricted purposes.
The general fund's fund balance reserve goal is 10°0 of budgeted annual expenditures.
The balance at June 30, 2009 is higher than the goal.
The unreserved fund balance of special revenue employee benefits fund decreased by
$91,766 to $25,508. Prior years' cash balance was transferred to general fund in 2009.
The unreserved fund balance of special revenue community development decreased by
$650,333 to $1.507.745, due to increase in a reserve for encumbrances for capital
projects.
Proprietary fiords. 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 assets of the enterprise funds at June 30. 2009 totaled $133,564,568 of
which 9.2 °0 ($12,321,125) is unrestricted. The net assets of the internal service funds are
$2.810.457, a $607,770 decrease from the 2008 total net assets, due to reduction in the
funding level of the Employee Health Insurance Reserve, based on favorable results in
claims for past years. The unrestricted net assets of the internal service funds are
$2,766,943 (98.4 °0).
The sewer disposal works had an increase in net assets of $1,780,928 for total net assets
of $41,226,185 at June 30. 2009 primarily due to capital contribution. The water utility
had a decrease in net assets of $276,595 for total net assets of $24,347,647. The storm
water utility had an increase in net assets of $1,734,725 for total net assets of
$25,768,366 primarily due to capital contributions. The parking facilities had an increase
in net assets of $23,236,226 for total net assets of $38,399,342 due to new Port of
Dubuque Parking Ramp. The America's River Project had an increase in net assets of
$84,388 for total net assets of $53,441.
21
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2008 -2009 cash basis budget. The first
amendment was passed in October 2008 to reflect operating and capital budget
carryovers (continuing appropriation authority) from 2008 and amends the FY 2009
budget for operating and capital City Council actions since the beginning of the fiscal
year. The second budget amendment was passed in May 2009 to reflect City Council
actions since the first budget amendment and amendments to add additional appropriation
authority due to increased revenues.
The final budget for total cash basis receipts increased by $26,364,456. 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 $59,159,789 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 $28,189,068 less than the final amended budget, and
cash basis expenditures were $73,664,207 less than the final amended budget due
primarily to projected capital projects not completed by fiscal year end.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business -
type activities as of June 30. 2009, amounts to $459.619.303 (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 the note 6 to the
financial statements in this report.
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in progress
Accumulated depreciation
CAPITAL ASSETS (net of accumulated depreciation)
Governmental Activities Business -type Activities
7009 2008 7009 2008 7009 2008
$ 58.397 908 $ 57,171.699 $ 6.777,014 $ 3,364,857 $ 64.619.977 $ 60,536,556
109,118,439 106,145,708 85,114,689 61,878,335 194,733,178 167 974,043
15,535370 15,745,857 63 968,077 67,087,85 7 77 378.709
31,100,111 78,67 57 967.717 49,717, 84,067,378 77,8
188,493,670 187,547,063 - - 188,493,670 187,547,063
6,138,618 14,044,930 9,558,83 63 15,697,457 70,435,867
(88,190352) (83,717,808) (78,800,142) (75,698,471) (166,990,494) (158916)7
$ 370,588,664 $ 375,611,587 $ 139,030,639 $ 107,186,474 $ 459,619,303 $ 437,798,061
Major expenditures during 2008 -2009 were for completion of the Port of Dubuque
Parking Ramp, Bee Branch and W 32" Street storm water projects. Library and NIulti-
Cultural Center renovations, land acquisition for new airport terminal, improvements at
the Dubuque Industrial Center West, Water Pollution Control Plant study and streets,
water and sewer projects.
Total
22
Long -term debt At year end the City had $71,813,088 of debt outstanding. This is an
increase of $11,415,061 from June 30, 2008. New debt issued during the current year
included general obligation bonds for $5,755,000 for Library and Multi Cultural Center
renovation projects and improvements at the Dubuque Industrial Center West and.
$3,885,000 for storm water projects. $1,195,000 revenue bonds were issued for water
projects. The City's bond rating for these issues was Aa2. The City also received
disbursements from the State Revolving Fund construction loan program of $414,478 for
drinking water. $2,189,989 for storm water and $809,362 for sewer projects. The City
also received a $400,000 loan from the Dubuque Initiatives for purchase of a parking lot.
and $150,000 loan from the Iowa Housing Authority for Affordable Housing.
The City continues to operate well under the State debt capacity limitations. The State
limits the amount of general obligation debt outstanding to 5°0 of the assessed value of
all taxable property in the community. Thus our debt capacity is $163,620,641. With
$76,181,766 of debt applicable against the capacity, we are utilizing 46.56°0 of this limit.
Additional information on the City's long -term debt can be found in note 7 of this report.
ECONOMIC FACTORS
The City's unemployment rate ended the fiscal year at 6.2°0, a 2.4°0 increase from the
prior year, and equal to the State of Iowa rate, but lower than the 9.5°0 national rate.
The City continues to enjoy growth in assessed valuation of taxable property net of
exemptions (6.9°0 for total of $1,939,773,000). In fiscal year 2009, the minimum
monthly refuse rate increased $0.46 to $10.35, sewer rates increased 9 °0, water rates
increased 9°0 and the storm water monthly fee increased $0.75 to $4.00 per single family
unit (SFU).
Requests for information. This financial report is designed to provide a general
overview of the City's finances for all those with an interest in the government's
finances. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to the Finance Director, 50 West
13 Street, Dubuque, Iowa 52001 -4864.
23
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
JUNE 30, 2009
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Internal balances
Inventories
Prepaid items
Total Current Assets
NONCURRENT ASSETS
Temporarily restricted cash and pooled
cash investments
Permanently restricted cash and pooled
cash 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
Governmental Business-type
Activities Activities
2 70, 044 -2 70, 044
19,095,444 - 19,095,444
1,727,713 2,576,561 4,304,274
633,997 - 633,997
242,126 55,339 297,465
716,545 - 716,545
3,814,684 1,031,444 4,846,128
381.257 (381.257)
210,133 488,557 698,690
27,764 - 27,764
66,317, 813 15,980,551 82,298,364
5,740,
69,412
9,885,668
Primary Government
770,157 6,510,409
69,412
9,885,668
58,392,908 6,227,014 64,619,922
109,118,439 85,114,689 194,233,128
15,535,320 63,968,022 79,503,342
31,100,111 52,962,217 84,062,328
188,493,620 - 188,493,620
6,138,618 9,558,839 15,697,457
(88,190,352) (78,800,142) (166,990,494)
336,283,996 139,800,796 476,084,792
Component Units
Dubuque
Metropolitan
Area Solid
Total Waste Agency
218,028
37,240
28,749
7,363,440
3,675,758
1,586,092
65,922
7,468,652
2,780,821
402,601,809 155,781,347 558,383,156 15,869,905
EXHIBIT 1
Dubuque
Initiatives
and
Subsidiaries
$ 39,198,106 $ 12,209,907 $ 51,408,013 $ 7,079,423 $ 37,215,806
327,518
32,843
65,273
133,347
37,774,787
22,375,380
131,983
11,832,432
32,816
(7,070,780) (313,016)
8,506,465 34,059,595
71,834,382
(continued)
74
CITY OF DUBUQUE, IOWA EXHIBIT 1
STATEMENT OF NET ASSETS (continued)
JUNE 30, 2009
See notes to financial statements.
Component Units
Dubuque Dubuque
Primary Government Metropolitan Initiatives
Governmental Business-type Area Solid and
Activities Activities Total Waste Agency Subsidiaries
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 5,735,973 $ 1,187,967 $ 6,923,940 $ 194,158 $ 5,218,662
Accrued payroll 1,119,046 239,253 1,358,299 28,996 -
Loans payable 16,667 18,911 35,578 - -
Notes payable 119,988 141,615 261,603 - 228,109
General obligation bonds payable 1,755,950 824,050 - -
Revenue bonds payable - 320 320 - -
Tax increment financing bonds payable 531,6(1)9 - 531,6(1)9 - -
Accrued compensated absences 2,594,380 384,609 2,978,989 133,921 -
Accrued interest payable 280,681 38,112 318,793 - 47,252
Intergovernmental payable 18,800 18,800 53,198 -
Unearned revenue
Succeeding year property tax 19,095,444 - 19,095,444
Other 663,363 663,363
Total Current Liabilities 31,931,901 3,154,517 35,086,418 410,273 5,494,023
NONCURRENT LIABILITIES
Loans payable 133,333 371,979 505,312
Notes payable 1,049,696 3,772,461 4,822,157
General obligation bonds payable 24,185,743 13,624,720 37,810,463
Revenue bonds payable - 1,114,713 1,114,713
Landfill closure and postclosure care - -
Tax increment financing bonds payable 23,831,653 23,831,653
Net OPEB liability 723,729 178,389 902,118
Total Noncurrent Liabilities 49,924,154 19,062,262 68,986,416
Total Liabilities 81,856,055 22,216,779 104,072,834
3,574,082
18,039
45(1),(1)(1)(1)
51,715,321
3,592,121 52,165,321
4,002,394 57,659,344
NET ASSETS
Invested in capital assets, net of
related debt 298,855,346 120,473,286 419,328,632 4,830,707 -
Restricted for/by
Bond ordinance 3,602,755 770,157 4,372,912 - Debt service 3,155 3,155 - -
Employee benefits 25,508 25,508 - Community development 12,769,234 - 12,769,234 - Streets 2,108,558 - 2,108,558 - -
Capital projects 6,729,893 - 6,729,893 - -
Franchise agreement 359,273 - 359,273 - -
Endowments
Expendable 35,550 - 35,550 - -
Nonexpendable 69,412 - 69,412 - -
Other 1,467,785 - 1,467,785 - -
State statute - - - 145,286 -
Minority interest - - 1,564,375 -
Unrestricted (5,280,715) 12,321,125 7,040,410 5,327,143 14,175,038
Total Net Assets $ 320,745,754 $ 133,564,568 $ 454,310,322 $ 11,867,511 $ 14,175,038
25
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2009
Functions/Programs
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
Total business-type activities
Total primary government
See notes to financial statements.
Expenses
$ 22,038,265 $
19,079,688
849,237
12,640,716
12,693,140
6,423,908
3,164,126
76,889,080
6,326,708
6,100,491
2,138,198
2,147,405
61,927
2,788,665
2,625,145
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
10,314,274
5,904,535
5,320,642
2,291,249
2,224,185
2,872,649
196,260
22,188,539 18, 809,520 1,095,946
$ 99,077,619 $ 29,123,794 $ 13,695,913 $ 8,425,050
Component units
Dubuque Metropolitan Area Solid Waste Agency $ 3,877,901 $ 2,776,190 $
Dubuque Initiatives and Subsidiaries 279,063 101,951
Total component units $ 4,156,964 $ 2,878,141 $
General revenues
Property taxes
Local option sales tax
Hotel/motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings (loss)
Gain on disposal of capital assets
Other
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
Program Revenues
2,020,625 $ 770,236 $ 48,000
4,456,364 4,810,803 2,443,170
114,992 62,663 -
2,279,688 210,081 1,301,485
263,434 6,743,481 1,015,016
1,179,171 2,703 4,058
12,599,967 4,811,729
1,095,946
2,029,347
448,135
949,199
86,640
100000
3,613,321
8,405 $ -
- 10,044,999
8,405 $ 10,044,999
Governmental Business -type
Activities Activities
$ (19,199,404) $
(7,369,351)
(671,582)
(8,849,462)
(4,671,209)
(5,237,976)
(3,164,126)
(49,163,110)
(49,163,110)
Primary Government
Net (Expense) Revenue and
Changes in Net Assets
Total
- $ (19,199,404) $
(7,369,351)
(671,582)
(8,849,462)
(4,671,209)
(5,237,976)
(3,164,1 26)
(49,163,110)
1,607,174 1,607,174
(331,714) (331,714)
1,102,20 1,102,20
163,420 163,420
38,073 38,073
83,984 83,984
(1,332,939) (1,332,939)
1,330,248 1,330,248
1,330,248 (47,832,862)
Component Units
Dubuque Dubuque
Metropolitan Initiatives
Area Solid and
Waste Agency Subsidiaries
(1,093,306) -
9,867,887
(1,093,306) 9,867,887
23,716,819 - 23,716,819 - -
7,649,853 - 7,649,853 - -
1,611,954 - 1,611,954 - -
1,486,292 - 1,486,292 - -
9,627,391 9,627,391 - -
2,215,413 433,148 2,648,561 311,882 (17,721)
407,503 2,304 409,807 379,534 55,460
918,605 - 918,605 - -
(24,826,982) 24,826,982 - - 22,806,848 25,262,434 48,069,282 691,416 37,739
(26,356,262) 26,592,682 236,420 (401,890) 9,905,626
347,102,016 106,971,886 454, 073,902 12,269,401 4,269,412
$ 320,745,754 $ 133,564,568 $ 454,310,322 $ 11,867,511 $ 14,175,038
EXHIBIT 2
26
CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2009
ASSETS
Cash and pooled cash investments $18,674,087 $ - $ 1,449,411 $ 1,494,169 $ 5,912,027 $ 7,585,757 $35,115,451
Receivables
Property tax
Delinquent 737,504 30,191 - - - 7,349 270,044
Succeeding year 16,847,899 1,753,390 - - - 494,155 19,095,444
Accounts and other 1,515,477 - - - - 47,856 1,563,333
Special assessments - - - - - 633,997 633,997
Accrued interest 112.617 - 38,543 7, 813 67,130 776,303
Notes - - 10,600,406 - - 1,807 10,602,213
Intergovernmental 1,437,374 - 735,867 1,442,046 - 699,407 3,814,684
Due from other finds 174,424 - - - - - 174,424
Inventones 164,868 - - - - - 164,868
Advances to other finds 208,804 - - - - - 208,804
Prepaid items 17,392 - 10,377 - - - 77,764
Restricted cash and pooled cash
investments - - - - 7,087,794 3,7 5,809,664
Total Assets $ 39,390,446 $ 1,783,581 $ 17 334,594 $ 2,943,415 $ 7,995,634 $ 13,759,373 $ 77,706,993
LIABILITIES AND FUND
BAL ANCES
LIABILITIE S
Accounts payable
Accrued payroll
Intergovernmental payable
Deferred revenue
Succeeding year property tax
Other
Total Liabilities
See notes to financial statements.
Special Revenue Capital Protects Other
Employee Community Street General Governmental
General Benefits Development Construction Construction Funds
$ 1,782,673 $
945,475
16,847,8 1,753,390
743,567
4,683
FUND BALANCES
Reserved for /by
Encumbrances 4,655,897 - 679,451
Long -term notes receivable - - 9,884,557
Advances 208,804
Bond ordinance
Debt service
Franchise agreement
Endowments
Unreserved
Designated for
Future equipment and capital
maintenance 3,713,079 -
Future cash flow 5,378,88? -
Undesignated reported in
General find 5,614,770 -
Special revenue finds - 75,508 1,507,745
Capital projects funds - -
Permanent funds
Total Fund Balances 19,070,882 7 5,508 12,021,753
Total Liabilities and Fund
Balances
- $ 284,659 $ 791,5 $ 1,506,186 $ 374,187 $ 4,739,775
- 78,18? - - 102,078 1,075,685
- - - - 18,800 18,800
1,042,786
673, 3,797,710
0 35, 0 03 7 ,696,738
1,609,109 6,489,448
EXHIBIT 3
Total
494,155 19,095,444
1,105,462 7,896,498
70319,564 1,758,073 312,841 1334,306 1,506,186 7,094,68 77,375,657
976,616 10,7
1, 1 1 1 9,885,668
208,804
3,607,755 3,607,755
3.155 3,155
1.337 1.337
69,412 69,417
3,713,079
5,378,88?
- 5,614,770
4,448,137 5
7,076,573 5,65
35,550 35,550
11,164,641 50,381,341
$ 39,390,446 $ 1,783,581 $ 12334,594 $ 2,943,415 $ 7,995,634 $ 13,759,373 $ 77,706,993
27
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2009
Total fund balances - governmental funds $ 50.381.341
Amounts reported for the governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets
Accumulated depreciation
Some of the City's revenues will be collected after year -end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds. Those revenues consist of:
Property tax 34.712
Special assessments 459.950
Other 1.738.473
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 assets.
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
Tax increment financing bonds
Notes payable
Loans payable
Accrued interest
Compensated absences
Net OPEB liability
See notes to financial statements.
$ 408.676.982
(88.132.732)
(25.941.693)
(24.363.262)
(1.169.684)
(150.000)
(280.681)
(2.594.380)
(723.729)
EXHIBIT 3 -1
320.544.250
2.233.135
2.810.457
(55.223.429)
Net assets of governmental activities $ 320.745.754
78
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
REVENUE S
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Contnbutions
Gaming
Miscellaneous
Total Revenues
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES
OTHER FINANCING
SOURCES (USES)
Issuance of debt
Discount on bonds
Transfers in
Transfers out
Sale of capital assets
Total Other Financing
Sources (Uses)
NET CHANGE IN FUND
BALANCES
FUND BALANCES,
BEGINNING
See notes to financial statements.
Special Revenue Capital Protects Other
Employee Community Street General Governmental
General Benefits Development Construction Construction Funds
$ 73,437,414 $ 7,087,517 $
1,088,386
7,746,598
7,858,819
199,839
1,097,085
1,148,144
9.62 ? 391
787,663
47,486339
2,584,600
(24,137)
7,895,074
(3,430,630)
574,131
(3,209,947) 2,087,188
7 ,598,988 (7,178,954)
EXHIBIT 4
Total
$ 7,704,055 $ - $ 6,634,765 $ 34,454,146
- _ 7 50,37 7 7 50,37 7
- - - - 1,088,386
7,874,751 673,107 7,170 10,050,751 15,796,8
- - - 170,370 8,079,189
- - - - 199,839
138,777 34,434 474,043 517,048 7,706,387
- 05,734 - 175,881 1369,75
- - - - 9,677,391
78,370 7,000 - 737,696 1,600,679
7,087,517 3,091,843 3,050, 476,163 18,480,883 74,677,
EXPENDITURES
Current
Public safety 71,179,647 - - - - 155,545 21,335,197
Public works 8,560,609 - 707, - - 5,493,741 14,261,551
Health and social services 704,573 - 83,7 - - 77,576 815,873
Culture and recreation 11993,734 - 176,778 - - 108,044 12,727,506
Commumty and economic
development 3,007,747 - 3, - - 5,659,491 11 053,779
General government 5,200,416 374 - - - 636,099 5,836,839
Debt service 50,060 - _ - - 5, 5,
Capital projects - - - 3,698,736 16,957,117 3,618,77 74,774,170
Total Expenditures 50,696,286 374 3,703,194 3,698,736 16,957,117 20,914,052 95,969, 204
(2,178,954)
(61095 (91,766) (433,491) (324,4 (12,582,807) (2,48 (16,528,875)
19,681,841 117,274 12,455,244
(611,351) (648,011) (16,530949) (2,433,169) (21346,739)
- - 3,320,400 - 5,905,000
- - (24,37 - (48,516)
177,860 507, 1,097,333 7,777,057 7,451,15
- (184,423) (460,037) (2,830,184) (9,084,228)
19,875 - 503,056
177,860 373,560
3,948,14 57,737) 4,817,364
1,933,560 19,07 13,650,042 66,910,216
FUND BALANCES, ENDING $ 19,070,882 $ 25,508 $ 12,021,753 $ 1,609,109 $ 6,489,448 $ 11,164,641 $ 50,381341
29
CITY OF DUBUQUE, IOWA EXHIBIT 4 -1
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT
OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2009
Net change in fund balances - total governmental funds $ (16,528,875)
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 penod, these amounts are
Capital assets expended in governmental funds
Transfers of capital assets from enterpnse funds
Transfers of capital assets to enterprise funds
Depreciation expense
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 assets differs from the change in fund balances by the
book value of the asset being disposed
Because some revenues will not be collected for several months after the City's
fiscal year ends, they are not considered "available" revenues and are deferred
in the governmental funds Deferred revenues increased by these amounts this year
Debt proceeds provide current financial resources to governmental funds, but
issuing debt increases long -term liabilities in the statement of net assets
Repayment of debt pnncipal is an expenditure in the governmental funds,
but it reduces long -term liabilities in the statement of net assets and does not
affect the statement of activities Also, governmental funds report the effect of
issuance discounts when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities
Debt proceeds
Discounts on bonds issued
Debt repayments
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
Increase in accrued interest
Amortization of bond discount
Increase in compensated absences
Increase in net OPEB liability
Internal service funds are used by management to charge the costs of certain
activities to individual funds The net revenue of the internal service funds is
reported with governmental activities
Change in net assets of governmental activities
See notes to financial statements.
$ 27,111,063
17,315
(23,211,221)
(7,513211)
Property tax -1,118
Special assessments 165,369
Other 159,813
( 5,905,000 )
48,516
2,169,678
(42,786)
(26,174)
(
(773,770)
(3,266,054)
(1,719,163)
329 330
(3,686,806)
Total additional expenses (846,924)
(607,770)
$ (26356262)
30
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2009
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Inventories
Total Current Assets
NONCURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
Sewage
Disposal
Works
$ 5.085.162 $ 2.087.935 $ 3.615.563 $ 498.052
1.043.834
22.229
6.151.225
167.855
31.590.936
32.563.154
9.978.592
1.741.487
(38.116.841)
37.925.183
37.925.183
44.076.408
Water
Utility
819.605
9.540
465.003
3.382.083
129.642
28.445.375
Business -type Activities -
Stormwater
Utility
308.059
13.140
106.150
Parking
Facilities
62.335
6.500
4.042.912 566.887
640.515
37.449 4.597.638 1.388.072
8.214.651 - 43.421.538
520.295 28.493.047 2.391.526
35.578.672 925.265 1.196.772
87.257 7.717.890 12.205
(19.504.674) (8.319.446) (7.780.838)
24.933.650 33.414.394 40.629.275
25.063.292 33.414.394 41.269.790
37.457.306 41.836.677
Enterprise Funds
America's Other
River Enterprise
Project Funds
Total
$ 54.365 $ 868.830 $ 12.209.907 $ 4.082.655
54.365
342.728
3.930
925.294
23.554
2.164.336
2.576.561
55.339
1.031.444
488.557
16.361.808
770.157
36.000 6.227.014
1.887.564 85.114.689
63.968.022
5.282.916 52.962.217
9.558.839
(5.078.343) (78.800.142)
2.128.137 13 9.03 0.63 9
2.128.137 139.800.796
Governmental
Activities -
Internal
Service Funds
164.380
15.823
45.265
4.308.123
102.034
(57.620)
44.414
44.414
54.365 4.292.473 156.162.604 4.352.537
(continued)
EXHIBIT 5
31
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2009
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
Due to other funds
Advances from other funds
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
General obligation bonds payable
(net of discount of $108,114 and deferred
amount on refunding of $98.116)
Revenue bonds payable
Capital loan notes payable
Net OPEB liability
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted by bond ordinance
Unrestricted
Total Net Assets
See notes to financial statements.
Sewage
Disposal
Works
Water
Utility
208.804
1,040.690 849.470
845.868 1.284.349
1.114.713
914.558 799.087
49.107 50.109
1.809.533 3.248.258
2.850.223 4.097.728
36.328.822
4.897.363
$ 41,226,185
21.997.748
129.642
2.220.257
$ 24,347,647
Business -type Activities -
Stormwater
Utility
$ 740.626 $ 199.047 $ 153.516 $ 39.341
55.741 58.841 4.625 20.939
18.911
105.000 160.000 415.000 144.050
70.000 250.000
34.332 29.997 77.286
102.176 113.706 4.380 21.652
2.815 9.075 24.243 1.979
679.050
8.942.054
2.058.816
9.020
11.009.890
11,688.940
22.726.693
3.041.673
$ 25,768,366
Parking
Facilities
496.872
371,979
2.552.449
16.035
2.940.463
3.437.335
37.291.886
640.515
466.941
$ 38,399,342
Enterprise Funds
America's Other
River Enterprise
Project Funds
Total
$ 924 $ 54.513 $ 1.187.967 $ 1.496.748
99.107 239.253 43.361
18.911
824.050
320.000
141.615
142.695 384.609
38.112
172.453 172.453 1.971
208.804
924 468.768 3.535.774 1.542.080
54.118
54.118
3 71.979
13.624.720
1.114.713
3.772.461
178.389
19.062.262
Governmental
Activities -
Internal
Service Funds
924 522.886 22.598.036 1.542.080
2.128.137 120.473.286 44.414
770.157
53.441 1.641.450 12.321.125 2.766.043
$ 53.441 $ 3.769.587 $ 133.564.568 $ 2.810.457
EXHIBIT 5
(continued)
32
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS (DEFICIT)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
Business -type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
OPERATING REVENUES
Charges for sales and services $ 5,826,348 $ 5,300,597 $ 2,273,874 $ 2,172,761
Other 78,187 20,045 17,375 51,424
Total Operating Revenues 5,904,535 5,320,642 2,291,249 2,224,185
OPERATING EXPENSES
Employee expense 2,212,548 2,241,602 187,442 692,046
Utilities 594,169 568,800 63 116,482
Repairs and maintenance 325,312 161,531 64,619
Supplies and services 1,876,597 2,144,898 1,203,242 497,369
Insurance 84,547 78,830 - 41,969
Depreciation 1,195,979 766,974 378,154 583,127
Total Operating Expenses 6,289,15' 5,962,635 1,768,901 1,995,612
OPERATING INCOME (LOSS)
See notes to financial statements.
(384,617) (641,993) 522,348 228,573
NONOPERATING REVENUES (EXPENSES)
Intergovernmental - - 949
Investment earnings 179,016 70,343 109,332 46,180
Contributions 5,019 1,825 145.569 86,640
Interest expense (37.556) (137,856 (369,297) (151,793)
Gain on disposal of assets 2,126 128 - -
Net Nonoperating Revenues (Expenses) 148,605 (65.560) (113,447) (18,973)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS (236,012) (707.553) 408,901 2'09,600
CAPITAL CONTRIBUTIONS 2,024,328 446,310 802,681 23,241,221
TRANSFERS IN 2,980 - 523,143 7,000
TRANSFERS OUT (10,368) (15,352) (221,595)
CHANGE IN NET ASSETS 1,780,928 (276,595) 1,734,725 23,236,226
NET ASSETS (DEFICIT), BEGINNING 39,445,257 24,624,242 24,033,641 15,163,116
NET ASSETS, ENDING $ 41,226,185 $ 24,347,647 $ 25.768,366 $ 38,399,342
Enterprise Funds Governmental
America's Other Activities -
River Enterprise Internal
Project Funds Total Service Funds
4,774
57,153
61,927
11111,111111
- $ 3,053,890
15,019
3,068,909
2,973,181
74,346
734,122
1,147,553
74,917
409,691
5,413,810
46,315 1,253,638
84,388 33,010
$ 18,627,470
182,050
18,809,520
8,311,593
1,353,860
1,285,584
6,926,812
280,263
3,333,925
21,492,037
$ 9,125,443
307,269
9,432,712
2,055,982
24,042
21,371
7,524,140
559,019
7,706
10,192,260
(61,927) (2,344,901) (2,682,517) (759,548)
100,000 1,095,946 1,196, 895
28,277 433,148
239,053
(696,502)
51 2,3114
1,124,273 1,174,898
26,514,540
1,833,1176
(247,315)
149,483
2,295
151,778
38,073 (1,220,628) (1,507,619) (607,770)
26,592,682 (607,770)
(30,947) 3,736,577 106,971,886 3,418,227
$ 53,441 $ 3,769,587 $ 133,564,568 $ 2,810,457
EXHIBIT 6
33
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
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
Proceeds from mterfund balances
Payment of mterfund balances
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTI\TTIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTI\TTIES
Proceeds from sale of capital assets
Acquisition and construction of capital assets
Proceeds from issuance of debt
Payment of debt
Interest paid
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTI\TTIES
Interest received
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Sewage
Disposal
Works
$ 5.862.946
(2.367.505)
(2.145.942)
78.187
1.427.686
2.980
(10.368)
(7.388)
(1.521.268)
184.376
83.406
Water
Utility
$ 5.265.212
(2.971.040)
(2.179.398)
20.045
134.819
(45.579)
(45.579)
2.126 128
(2.200.592) (819) (5.721.795) (635.218)
809.362 1.598.993 6.038.576 453.750
(100.000) (194.000) (443.000) (477.860)
(37.183) (133.454) (359.408) (151.432)
5.019 1.825 40.368 86.640
1.272.673
67.354
1.429.267
Business -type Activities -
Stormwater
Utility
$ 2.193.396
(1.364.322)
(173.823)
17.375
672.626
523.143
523.143
(445.259)
111.095
861,605
Parking
Facilities
$ 2.171.931
(701.433)
(674.022)
51.424
847.900
7.000
(221.595)
(214,595)
(724.120)
48.452
(42.363)
5.001.756 788.310 2.753.958 1.180.930
$ 5.085.162 $ 2.217.577 $ 3.615.563 $ 1.138.567
Enterprise Funds
America's
River
Proj ect
Other
Enterprise
Funds
$ - $ 3.014.619
(57.153) (2.034.035)
(4.774) (2.871.602)
- 15.019
(61.927) (1.875.999)
46.315 1.253.638
(308.259)
1.146.836
46.315 2.092.215
(30.023)
100.000
28.634
54.365 123.677
Total
$ 18.508.104
(9.495.488)
(8.049.561)
182.050
1.145.105
1.833.076
(231.963)
(353.838)
1.146.8 36
2.394.111
50 2.304
(121.223) (8.709.670)
- 8.900.681
(1.214.860)
(681.477)
133.852
100.000
69.977 (121.173) (1.469.170)
439.911
2.509.957
745.153 10.470.107
$ 54.365 $ 868.830 $ 12.980.064
Governmental
Activities -
Internal
Service Funds
$ 9.081.755
(8.286.913)
(2.055.175)
307.269
(953.064)
1.971
1.971
2.295
2.295
159.205
(789.593)
4.872.248
$ 4.082.655
(continued)
EXHIBIT 7
34
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributions of capital assets from other funds and
outside sources
See notes to financial statements.
Business -type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ (384.617) $ (641.993) $ 522.348 $ 228.573
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 1.195.979 766.974 378.154 583.127
Change in assets and liabilities
(Increase) decrease in receivables 36.598 (35.385) (80.478) 5.587
(Increase) decrease in inventories and prepaid items 5.339 (19.082)
Increase (decrease) in accounts payable 507.781 2.101 (161.017) 19.006
Increase in accrued liabilities 17.499 12.095 4.599 1.989
Decrease in unearned revenue (6.417)
Increase in net OPEB liability 49.107 50.109 9.020 16.035
Total Adjustments 1.812.303 776.812 150.278 619.327
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 1.427.686 $ 134.819 $ 672.626 $ 847.900
$ 2.024.328 $ 446.310 $ 802.681 $ 23.241.221
Contributions of capital assets to Governmental Activities $ 10.368 $ 15.352 $ - $ 21.595
Enterprise Funds Governmental
America's Other Activities -
River Enterprise Internal
Project Funds Total Service Funds
$ (61.927) $ (2.344.901) $ (2.682.517) $ (759.548)
409.691 3.333.925 7.706
(39.271) (112.949) (43.688)
(6.179) (19.922) 12.373
3.082 370.953 (170.714)
47.461 83.643 807
(6.417)
54.118 178.389
468.902 3.827.622 (193.516)
$ (61.927) $ (1.875.999) $ 1.145.105 $ (953.064)
$ $ - $ 26.514.540 $
$ $ - $ 47.315 $
EXHIBIT 7
(continued)
35
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2009
ASSETS
Cash and pooled cash investments
Accounts receivable
Accrued interest
EXHIBIT 8
Agency
Funds
$ 1.123.790
5.559
3.238
Total Assets $ 1.132.587
LIABILITIES
Due to other agency $ 1.132.587
See notes to financial statements. 36
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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 1\Ianagement
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Retirement Systems
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. New Governmental Accounting Standards Board (GASB) Standards
37
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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. The component units also have June 30 year ends.
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.
Dubuque Initiatives and Subsidiaries is a non - profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque, Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type.
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 Economic
Development Office for Dubuque Initiatives and Subsidiaries.
City of Dubuque
50 West 13` Street
Dubuque, Iowa 52001
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
(continued on next page) 38
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net assets 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 prmnary 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). 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.
(continued on next page) 39
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
The Employee Benefits Fund is used to account for pension and related employee benefit costs for
those employees paid wages from the General Fund.
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 Street Construction Fund is used to account for the resources and costs related to street
capital improvements.
The General Construction Fund is used to account for the resources and costs related to
nonassignable capital improvements.
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 Storm water Utility Fund i s used to account for the operations of the City's stormw
services.
The Parking Facilities Fund is used to account for the operations of the City -owned parking
ramps and other parking facilities.
The America's River Project is used to account for the construction of all projects covered by the
Vision Iowa Grant, including all matching funds.
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.
Fiduciary funds account for assets held by the City in a trustee or agency capacity for the benefit of others
and cannot be used to support City activities. Fiduciary funds, other than agency funds, use the economic
resources measurement focus and the jell accrual basis of accounting. Agency funds use the jell 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 and for the Dubuque Racing Association.
Private- sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government -wide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private- sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
(continued on next page) 40
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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, Liabilities, and Equity
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.
Investments are stated at fair value or amortized cost. Amortized cost is used only for money market
investments that have a remaining maturity at time of purchase of one year or less.
Receivables and Parables
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."
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources.
(continued on next page) 41
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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, 2009, and
unpaid taxes. The succeeding year property tax receivable represents taxes collected by the County but
not remitted to the City at June 30, 2009, and 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 deferred in both the
government -wide and fund financial statements and will not be recognized as revenue until the year for
which it is levied.
Property taxes are levied as of July 1 on property values assessed as of January 1 of the previous year.
The tax levy is divided into two billings. The billings are due September 1 and March 1. On September 30
and March 31, the bill becomes delinquent, and penalties and interest may be assessed by the government.
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 the lower of cost (FIFO method) or market and
consist of consumable supplies. The cost of these supplies is recorded as an expense at the time they are
removed from inventory for use.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The costs of governmental fund prepaids are recorded as expenditures when consumed
rather than when purchased.
Restricted _Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the balance sheet /statement of net assets 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 agreements and the City's cable television franchise 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.
(continued on next page) -42
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Capital _Assets
Capital assets, which include property, plant, equipment, 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 assets and in the proprietary funds statement of net
assets. Capital assets are defined by the government as assets with an initial, individual cost of more than
$100,000 for infrastructure assets, $20,000 for building assets, and $10,000 for the remaining assets, and
an estimated useful life of more than a year. Such assets are recorded at historical cost or estimated
historical cost if purchased or constructed. Donated capital assets are recorded at estimated fair market
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. Interest
incurred during the construction phase of capital assets of business -type activities is not included as part
of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component unit, is 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 15 to 75
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 are paid for 25°o of all eligible hours (50 °o in the case of
police and fire employees). 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 assets. Bond premiums and
discounts, bond issuance costs, 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 and deferred amount on refundings.
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 issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
(continued on next page) 43
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Equity
The Dubuque Metropolitan Area Solid Waste Agency's restricted net assets represent 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 assets restricted for minority interest is
calculated at 22.7 °o of unrestricted net assets, based on the 1976 revenue bond resolution authorizing the
issuance of revenue bonds for the construction of the landfill.
In the fund financial statements, governmental funds report reservations of fund balance for amounts not
available for appropriation or legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.
Budgets and Budgetany Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
During the year ended June 30, 2009, disbursements did not exceed the amounts budgeted in any
function.
Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
NOTE 2 — DEFICIT FUND EQUITY
The following funds have deficit net asset amounts as of June 30, 2009:
Internal Service
General Service $ 18,074
Stores /Printing $ 5,056
Workers' Compensation Reserve $ 419,230
The General Service and Stores /Printing deficits will be addressed during next fiscal year's reallocation of
expenses. The Worker's Compensation Reserve deficit is a result of a number of projected settlements at
fiscal year end that will be paid during next fiscal year with additional funding to cover.
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 $11,562 for the City and $450 for the Dubuque
Metropolitan Area Solid Waste Agency.
Deposits. At year -end, the City's carrying amount of deposits was $31,250,357, and the bank balance was
$33,224,946. The City's deposits in banks at June 30, 2009, 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.
(continued on next page) 44
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
The carrying amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$10,754,731, and the bank balance was $11,026,563. The Agency's deposits in banks at June 30, 2009,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
Investments. As of June 30, 2009, the City had the following investments and maturi ties. (The City
assumes callable bonds will not be called):
Investment Type Less than 1
Investment Maturities (In Years)
1 to 5 6 to 10 More than 10 Total
Mutual Funds —
U S Treasury $ 2,065,957 $ - $ - $ - $ 2,065,957
U S Treasury Securities 205,617 2,217,713 223,869 - 2,647,199
Municipal Bonds - 808,844 - - 808,844
Federal Agency Obligations 1,664,320 8,743,265 2,884,450 8,978,258 22,270,293
Corporate Stock 57,412 - - - 57,412
S 3.993306 S 11.769.8"_2 S 3.108319 S 8.978.258 S _'7.849705
The City and the Dubuque Metropolitan Solid Waste Agency are authorized by statute to invest public
funds in obligations of the United States government, its agencies and instrumentalities; certificates of
deposit or other evidences of deposit at federally insured depository 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.
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 municipal bonds were rated A or better.
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.
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.
(continued on next page) 45
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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, tort
liability, road use tax, cable TV, general construction, transit system, general service, garage service, and
stores /printing funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2009.
A reconciliation of cash and investments as shown on the government -wide statement of net assets for the
primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 11,562
Carrying amount of deposits 31,250,357
Carrying amount of investments 27,849,705
Total $ 59.111.624
Government -wide
Cash and pooled cash investments $ 51,408,013
Cash and pooled cash investments — temporarily restricted 6,510,409
Cash and pooled cash investments — permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 1,123,790
Total $ 59.111.624
A reconciliation of cash and investments as shown on the government -wide statement of net assets for the
Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand
Carrying amount of deposits
Cash and pooled cash investments
Cash and pooled cash investments — temporarily restricted
$ 450
10, 754, 731
Total $ 10,755,181
$ 7,079,423
3,675, 758
Total $ 10.755.181
(continued on next page) 46
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Dubuque Initiatives and Subsidiaries. At June 30, 2009, Dubuque Initiatives and Subsidiaries had the
following cash and investments:
Deposits $ 35,560,562
Repurchase agreement 529,112
Beneficial interest in assets held by others 828,215
Investment in partnership 297,917
Total S 37.215.806
NOTE 4 — NOTES RECEIVABLE
At June 30, 2009, Dubuque Initiatives and Subsidiaries had the following notes receivable:
Grand River Development, LLC, 5.50 °o, unsecured, matures May 2017 $ 326,787
Lower Main Development, 4.00 °0, unsecured, matures August 2018 130,602
City of Dubuque, 5.00 °o, unsecured, matures July 2023 390,889
Roshek Building Investment Fund, LLC, 4.74 °o, collateralized by a
pledge agreement, matures June 2039 6,500,000
Roshek Building Investment Fund, LLC, 4.74 °o, collateralized by a
pledge agreement, matures June 2039 9,797,991
Roshek Building Investment Fund, LLC, 4.74 °o, collateralized by a
pledge agreement, matures June 2039 5,294,384
Total notes receivable 22,440,653
Less: current maturities (65,273)
Noncurrent portion 2
S 2.375.380
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2009, include amounts due to /from other funds and advances due to /from
other funds. Due to /from other funds balances represent amounts due to the general fund from the
nonmajor enterprise funds ($172,453) and the internal service funds ($1,971) for deficit pooled cash
balances. Advances to /from other fund balance of $208,804 represent amounts due to the general fund
from the water utility fund for a construction loan.
(continued on next page) 47
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Interfund transfers for the year ended June 30, 2009, consisted of the following:
Transfer from
Nonmajor
Employee Street General Governmental Parking
General Benefits Construction Construction Funds Facilities
Transfer to
General $ $ 2,178 95.1 $ 104,490 $ 300,000 $ 311,580 $ - $ 2,895,024
Community development - - 177,860 - 177,860
Street construction 90,000 - - 417,983 - 507,983
General construction 123,625 - 8,751 959 u57 - 1,09? 333
Nonmajor governmental 1,482,066 - 71,182 160,037 864,667 200,000 ? 777,952
Sewage disposal works - - - 2 980 - 2 980
Stormwater utility 427.986 - - - 95,157 - 523,143
Parking facilities 7,000 - - - - 7,000
Amenca's River Project 46,315 - - - - - 46,315
Nonmajor enterpnse 1,253,638 - 1,253,638
$ 3,430,630 $ 2,178,954 $ 184,423 $ 460,037 $ 2 ,830,184 $ 200,000 9,284,228
Transfer to governmental activities capital assets from enterprise funds 47,315
In the fund financial statements, total transfers out of $9,284,228 are greater than total transfers in of
$9,331,543 because of the treatment of transfers of capital assets to the governmental activities capital
assets. During the year, capital assets related to a phone system with a book value of $47,315 were
transferred to governmental activities capital assets. No amounts were reported in the governmental
funds, as the amounts did not involve the transfer of financial resources. However, Sewage Disposal
Works, Water Utility, and Parking Facilities did report transfers out for the capital resources given.
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.
Transfers from governmental activities to the business -type activities on the statement of activities
includes the transfer of the Port of Dubuque Parking Facility in the amount of $23,241,221. This
transaction is reported as a capital contribution in the Parking Facilities Proprietary Fund.
(continued on next page) 48
Total
$ 9,331,543
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2009, was as follows:
Primary Government:
Governmental activities:
Capital assets, being
depreciated
Buildings 106,145,708
Improvements other
than buildings 15,745,857
Machinery and equipment 28,679,138
Infrastructure 187 542 063
Total capital assets, being
depreciated 337 612 766
Total capital assets, being
depreciated, net 254 394,958
Business -type activities:
Capital assets, not being
depreciated
Land $ 3,364,857 $
Construction in progress 6,390,936
Total capital assets, not
being depreciated 9 755 793
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets, not being
depreciated
Land $ 57,171,699 $ - $ - $ 1,221,209 $ - $ 58,39? 908
Construction m progress 14 044,930 - 123,241,221) 25724,525 (10 389 616) 6,138,618
Total capital assets, not
being depreciated 71 216 029 - (23,241,221) 26 945 734 (10 389 616) 64,531,526
47,315
47,315
47,315
$
3,053,731 (81,000) 109,118,439
300,683 (11,220) 15,535,320
3,680,160 (1,306,502) 31,100,111
3 850 371 12 898 814) 188,493,620
10 884, (4 297 536) 344,247,490
Less accumulated
depreciation for
Buildings 12? 162,212) - - (1,790360) 19,800 1
Improvements other
thanbuildings (5,041,462) - - (499)38) - (5,540,700)
hlaclunery and equipment (11,907,357) - - 12,430,27 1,051,469 (13,286,160
Infrastructure (44 106 777) - - (2 801 047) 1,477,104 (45,430,7
Total accumulated
depreciation (83,217,808) - - (75 2548,373 (88,190352)
3 364,028 (1 749 163) 256,057,138
Governmental activities
capital assets, net $ 325.611.587 $ 47 315 $ 173 $ 30309762 S 112.138.77 $ 320 588.664
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
- $ 2,862,157 $ - $ 6,2
(47,315) 8,566,269 (5351,051) 9,558,83
(47315) 11 428 426 45351 05h 15,785,853
(continued on next page) 49
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Capital assets, being
depreciated
Buildings
Improvements other
than buildings
Machinery and equipment
Total capital assets, being
depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
$ 61,828,334 $ 23,241221 $
62,082,854
49,217,913
173 129 101 23,241,221
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets
Total depreciation expense — governmental activities
Business -type activities:
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
Refuse collection
Transit system
Total depreciation expense — business -type activities
- $ 45.134 $
1,885,168
3,981,623
(237,319) 57,967,717
5911925 (237,319) 202,044,928
Less accumulated
depreciation for
Buildings (37,904,904) - - ( 000 0 34) - (38,904,838)
Improvements other
thanbmldings (16,934,701) - - (1,155,029) - (18,089,730)
Machinery and equipment (20,858,819) - - (1178959) 232204 (21,805,574)
Total accumulated
depreciation (75 698 424) - - (3 333 922) 232 204 (78,800,142)
Total capital assets, being
depreciated, net 97 430 677 23,241 221 - 2 578 003 (5 115 ) 123,244,786
Business -type activities
capital assets, net $ 107.186.470 $ 7 3. 7 41 221 $ 147 315) $ 14.006.42 $ 15 356.1661 $ 139 030.63
Depreciation expense was charged to functions /programs for the primary government as follows:
- $ 85,111689
- 63,968,022
$ 861,736
4,691,292
7,068
1,682,186
40,023
230,906
7,706
$ 7,520,917
$ 1,195,979
766,974
378,154
583,127
94,503
315,188
S 3.333.925
(continued on next page) 50
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Component Unit:
Dubuque Metropolitan Area Solid
Waste Agency:
Capital assets, not being depreciated:
Land $ 1,586,092 $ $ - $ 1,586,092
Capital assets, being depreciated:
Buildings 65,922
Improvements other than buildings 7,468,652
Machinery and equipment 2 361 686
Total capital assets, being depreciated 9,896,260
NOTE 7 — LONG -TERM DEBT
Beginning Ending
Balance Increases Decreases Balance
1 408 111 (988,976)
1,408,111 (988,976)
65,922
7,468,652
2,780,821
10,315,395
Less accumulated depreciation for:
Buildings (45,787) (719) (46,506)
Improvements other than buildings (5,569,875) (435,385) - (6,005,260)
Machinery and equipment (1 470 263) (307,012) 758,261 (1 019 014)
Total accumulated depreciation (7 085 925) (743 116) 758,261 (7,070,780)
Total capital assets, being depreciated, net 2,810,335 664,995 (230,715) 3,244,615)
Dubuque Metropolitan Area Solid
Waste Agency capital assets, net S - 4.396.-427 S 66-4.995 S (230.7151
Depreciation expense of $743,116 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
Gain on disposal of capital assets includes $380,800 in insurance proceeds. The book value of assets
disposed receiving insurance proceeds was $130,073, resulting in a net gain of $250,727.
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 $38,945,000.
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, 2009, are as follows:
In a prior year, the City defeased general obligation bonds by placing the proceeds of new bonds in an
irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust
account assets and the liability for the defeased bonds are not included in the City's financial statements.
On June 30, 2009, $3,345,000 of bonds outstanding are considered defeased. These bonds will remain
outstanding until they are called on June 1, 2010.
(continued on next page) 51
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Purpose
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
and refunding
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
Refunding
Corporate purpose
and refunding
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
(taxable)
12/03/02
10/15/03
04/18/05
04/03/06
04/03/06
04/03/06
12/01/07
12/01/07
11/04/08
11/04/08
11/04/08
Fiscal Year Ending
June 30
2010
2011
2012
2013
2014
2015 -2019
2020 -2024
2025 -2028
Total
Date of
Issue 1\Iaturity Dates
12/27/01 06/01/05-06/01/21
01/09/02 06/01/04- 06/01/21
03/26/02 06/01/03 - 06/01/21
06/01/03-06/01/17
06/01/04- 06/01/23
06/01/06 - 06/01/24
06/01 /07 -06/01 /25
06/01/07- 06/01/21
06/01/10-06/01/20
06/01/10-06/01/17
06/01/09- 06/01/17
06/01 /09 -06/01 /28
06/01/09 - 06/01/23
06/30/09- 06/30/18
Governme
Principal
$ 1,755,950
1,831,604
1,889,468
1,948,723
2,213,723
11, 751, 277
4,689,255
Amount Amount
Interest Originally Outstanding
Rates Issued End of Year
4.13 - 4.90 °o $ 9,500,000 $ 7,325,000
4.20 -4.95 2,860,000 2,080,000
4.10 -5.00 1,000,000 735,000
3.50 -4.30 3,105,000 1,445,000
3.20 -4.75 2,110,000 1,595,000
3.30 -5.00 9,015,000 7,430,000
3.80 -4.20 2,900,000 2,595,000
3.65 -4.20 910,000 775,000
3.65 -4.10 3,525,000 3,525,000
3.75 2,965,000 2,965,000
3.40 -3.65 1,055,000 955,000
3.75 -4.80 3,885,000 3,785,000
3.75 -4.25 3,290,000 3,160,000
5.25 - 5.50 2,465,000 2,365,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
ntal Activities
Interest
$ 1,151,143
1,079,460
1,003,239
923,289
839,876
2,623,186
362,713
$ - 48.585.000 S - 40.735.000
Business -type Activities
Principal Interest
$ 824,050
858,396
890,532
911,277
951,277
5,143, 723
3,780,745
1,295,000
$ 596,722
567,452
536,304
503,396
468,959
1,756,548
750,394
139 360
S 26.080.000 S 7.982.906 S 1-4.655.000 S 5.319.135
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. The original amount of tax increment
financing bonds issued in prior years was $27,593,538. Tax increment financing bonds outstanding at
June 30, 2009, are as follows:
(continued on next page) 52
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Date of
Issue
Advanced Data -
Comm 03/18/99
Cartegraph Systems 12/01/99
Eagle Window &
Door 02/15/00
Vessel Systems 12/30/03
Diamond Jo Parking
Ramp 10/16/07
Purpose
June 30
2010
2011
2012
2013
2014
2015 -2019
2020 -2024
2025 -2029
2030 -2034
2035 -2037
Parking facilities 03/01/98
Water utility 11/04/08
1\ Iaturity Dates
12/31/01- 06/30/11
Interest
Rates
12/31/01- 12/31/10 8.8
12/31/02- 06/30/12 9.1
12/30/05- 06/30/15 8.0
06/01/11- 06/01/37
Date of
Issue I\Iaturity Dates
Interest
Rates
6.0 °o $
Amount
Originally
Issued
Amount
Outstanding
End of Year
900,000 $ 166,218
360,000 63,466
3,168, 538 1,260,336
140,000 96,656
7.5 23,025,000 23,025,000
S 27.593.538 $ 24.611.676
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Ending Governmental Activities
Principal Interest
$ 531,609
812,174
778,939
346,617
372,973
2,234,364
3,185,000
4,565,000
6,555,000
5,230,000
$ 1,853,225
1,805,199
1,742,354
1,686,616
1,660,510
7,849,543
6,881,625
5,496,000
3,506,250
803,250
Total $ 2- 4,611.676 $ 33.28 -1- 572
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 generally are issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi - annually. Revenue bonds
outstanding at June 30, 2009, are as follows:
Amount
Originally
Issued
Amount
Outstanding
End of Year
05/01/98- 05/01/10 4.70 - 4.75 °o $ 2,515,000 $ 250,000
06/01/10 - 06/01/23 3.00 -5.00 1,195,000 1,195,000
S 3 S 1.-4- 45.000
(continued on next page) 53
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30
2010
2011
2012
2013
2014
2015 -2019
2020 -2023
2010
2011
2012
2013
2014
2015 -2019
Total
Date of
Issue
Maturity Dates
Interest
Rates
Adams Company 02/13/04 06/01/05- 06/01/15
Lower Main
Development 06/30/04 12/31/06- 06/30/16 8.00
Theisen Supply 11/22/06 12/31/08- 06/30/18 8.25
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Ending
June 30
Business -type Activities
Principal Interest
$ 320,000 $ 63,583
70,000 49,608
70,000 47,333
75,000 44,883
75,000 42,070
425,000 160,045
410,000 51,953
45.000 S - 459,475
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, 2009, are as follows:
Amount
Originally
Issued
4.07 °o $ 500,000 $
182,000
810,323
S 1.- 492,323
Governmental Activities
Principal Interest
$ 119,988 $
128,256
133,792
141,183
149,191
497,274
S 1.169.684
Amount
Outstanding
End of Year
272.727
140,866
756,091
S 1.169.68-4
83,187
75,044
66,374
55,284
45,425
84,189
409,503
(continued on next page) 54
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Capital Loan Notes. Capital loan notes have been issued for the planning and construction of sewer,
stonnwater, and water capital projects through the State of Iowa State Revolving Loan Funds.
Planning
Northfork Catfish
Creek Project
Northfork Catfish
Creek Project
Water Pollution
Control Plant
Design
Clean Water
Drinking Water
Annual Debt Service Requ
Purpose
Parking Lot
Purchase
Housing Rehab
Project
2010
2011
2012
2013
2014
2015 -2019
2020 -2024
2025 -2029
Total
Date
Authorized Maturity Dates
12/28/06 12/01/09-06/01/29
12/18/06 12/01/09-06/01/29
03/11/09
01/14/09
10/18/07
Fiscal Year Ending
June 30
Loans Payable. Loans payable have been issued to fund several City projects.
Date of
Issue
12/01/09-06/01/29
06/01/09 - 06/01/29
06/01/08-06/01/29
Maturity Dates
07/08/08 01/01/09 - 07/01/23
03/13/09 03/16/10- 10/01/17
Amount
Interest Amount Outstanding
Rates Authorized End of Year
3.25 °o $ 1,889,521 $ 615,354
3.25 253,850 236,907
ements to maturity for capital loan notes are as follows:
Interest
Rates
5 ° o
3
3.25 3,200,000 711,983
3.25 2,000,000 1,520,748
3.25 1,037,000 829,084
$ 8.380.371 S 3.91 -4.076
Business -Type Activities
Principal Interest
$ 141,615 $ 126,066
146,255 121,426
151,047 116,634
155,996 111,685
161,107 106,574
888,259 450,149
1,043,627 294,781
1,226,170 112,237
S 3.914.076 S 1.-439.552
At June 30, 2009, the City of Dubuque had $4,354,294 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 2011.
Amount
Originally
Issued
$ 400,000 $ 390,889
500,000
900,000
Amount
Outstanding
End of Year
150,000
540,889
(continued on next page) 55
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year Ending
June 30
2010
2011
2012
2013
2014
2015 -2019
2020 -2024
Total
Governmental activities:
General obligation
bonds
Less:
Unamortized discounts
Deferred amount on
refunding
Total general
obligation bonds
Tax increment financing
bonds
Less:
Unamortized discounts
Total tax increment
financing bonds
Notes payable
Loans payable
Compensated absences
Business -type activities:
General obligation
bonds
Less:
Unamortized discounts
Deferred amount on
refunding
Total general
obligation bonds
Revenue bonds
Unamortized discounts
Total revenue bonds
Beginning
Balance Additions Reductions
11,891
(64,929) 5,411
21,752,907 5 706 484 (1 517 698)
25,136,402 (524, 726)
(257,286) 8,872
24,879,116 (515 854)
1,279,636 (109, 952)
150,000 -
2,540,145 2 605 493 (2 551 258)
(42,164) (48,516)
$ 50.- 451,804 $ 8.-461.977 $ (4.694.762)
Beginning
Balance Additions Reductions
$ 11,570,000 $ 3,885,000 $ (800,000) $ 14,655,000 $
(78,593) (36,393)
(107,036)
11,384,371
490,000
490,000
Governmental Activities
Principal Interest
$ 16,667 $ 6,423
16,667 4,000
16,667
16,667
16,667
66,665
3,500
3,000
2,500
5,000
$ 150.000 $ 2 4.-423
3 848 607
1,195, 000
(10,755)
1,184, 245
6,872
8,920
(784,208)
(240,000)
468
(239,532)
Business -type A
Principal
$ 18,911 $
19,869
20,874
21,931
23,041
133,939
152,324
5 390.889
Ending
Balance
(78,789)
25,941,693
24,611,676
(248,414)
(108,114)
ctivities
Interest
19,311
18,354
17,348
16,291
15,181
57,180
19,668
5 163.333
Changes in Long -term Liabilities. Long -term liability activity for the year ended June 30, 2009, was as
follows:
Due Within
One Year
$ 21,860,000 $ 5,755,000 $ (1,535,000) $ 26,080,000 $ 1,755,950
(59,518)
1,755,950
531,609
24,363,262 531,609
1,169, 684 119,988
150,000 16,667
2 ,594,380 2,594,380
5 54.219.019 $ 5.018.59-4
Ending Due Within
Balance One Year
824,050
(98,116)
14 448 770 824 050
1,445,000 320,000
(10,287) -
1,434,713 320,000
(continued on next page) 56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Business -type activities:
Capital loan notes
Loans payable
Compensated absences
Beginning
Balance
(continued)
$ 611,997
331,500
Ending
Additions Reductions Balance
$ 3,414,079
400,000
384,609
$ (112,000) $ 3,914,076
(9,110) 390,890
(331,500) 384,609
$ 12,817,868 $ 9,231,5 -40 $ (1, 476,350) $ 20,573,058
Note payable to Dubuque Bank & Trust (Loan A), with the
following interest rate provisions: fixed interest rate of 5.85 °0
during the "Fixed Interest Rate Period "; during the "Initial
Loan A Variable Interest Rate Period ", an interest rate equal
to the greater of the "Loan A Index Rate" plus 2.75 °o and
5.00 °0; during the "Second Loan A Variable Interest Rate
Period ", an interest rate equal to the "Loan A Index Rate"
plus 2.75 °0. Monthly interest only payments are due with
final principal and interest due at maturity on June 15, 2029.*
Note payable to Dubuque Bank & Trust (Loan B), with the
following interest rate provisions: fixed interest rate of 5.85 °0
during the "Fixed Interest Rate Period ", during the "Variable
Interest Period: an interest rate equal to the "Loan A Index
Rate" plus 2.75 °0. Monthly interest only payments due until
March 2010, principal and interest payments of $54,167 begin
on April 1, 2010. This note matures on June 15, 2019.*
Note payable to Dubuque Bank & Trust (Loan C), interest rate
equal to the greater of Prime Rate plus 0.50 °0 or 3.99 °o.
Monthly interest only payments are due with final principal
and interest due at maturity on December 31, 2010. **
Note payable to Dubuque Bank & Trust (Loan D), interest rate
equal to the greater of Prime Rate plus 0.50 °0 or 3.99 °o.
Monthly interest only payments are due with final principal
and interest due at maturity on October 31, 2011.*
Note payable to ICD VIII, LLC (QLICI QA1 Loan), fixed
interest rate of 4.74°0. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039. * **
Due Within
One Year
$ 141,615
18,911
384,609
$ 1,689,185
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
Dubuque Initiatives and Subsidiaries. At June 30, 2009, Dubuque Initiatives and Subsidiaries had the
following notes payable:
$ 5,294,384
6,500,000
9,797,991
10,651,055
5,897,192
(continued on next page) 57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
Note payable to USBCDE Sub -CDE XXXV, LLC (QLICI
QA2 Loan), fixed interest rate of 4.47 0 o. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039. * **
Note payable to ICD VIII, LLC (QLICI QB1 Loan), fixed
interest rate of 1.80 °o. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039. * **
2010 $ 228,109
2011 10,088,801
2012 10,959,341
2013 326,812
2014 346,451
Thereafter 29,993,916
S 51.9-43.-430
$ 5,897,192
3,902, 808
Note payable to USBCDE Sub -CDE XXXV, LLC (QLICI
QB2 Loan), fixed interest rate of 1.80 °o. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039. * ** 4,002,808
51,943,430
Less: Current maturities 228,109
Noncurrent liability $ 51.715.321
The following is a schedule by years of the principal maturi ties of long -term debt obligations for the years
ending June 30:
* - Notes A, B, and D payable to Dubuque Bank & Trust are collateralized by a security agreement
dated June 22, 2009, a collateral assignment of tax credit purchase agreement dated June 22, 2009, and a
collateral assignment of fund loan documents dated June 22, 2009.
** - Note C payable to Dubuque Bank & Trust is collateralized by a security agreement dated June 22,
2009, and a collateral assignment of federal historic tax credit bridge loan documents dated June 22,
2009.
* * *- These notes payable to various entities are collateralized by, among other things, a certain Open -End
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing of even date
herewith executed by Borrower, as Mortgagor, to Administrative Agent, in its capacity as the
Administrative Agent for the Lenders and for the benefit of the Lenders, as Mortgagee, encumbering the
Property.
(continued on next page) 58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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 any 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 $85,000, and an aggregate stop -loss of
$6,075,095 for 2009. Coverage from a private insurance company is maintained for losses in excess of the
stop -loss amount. All claims handling procedures are performed by a third -party claims administrator.
Incurred but not reported claims have been accrued as a liability based upon the claims administrator's
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense.
The City has established a Workers' Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Workers' compensation benefits were
self- insured up to a specific stop -loss amount of $450,000, and an aggregate -stop loss consistent with
statutory limits for 2009. 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.
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 $814,119 in the Health Insurance Reserve
Fund and $622,009 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 for the fiscal years ended June 30, 2009 and 2008, are summarized as
follows:
Liabilities at June 30, 2007 $ 714,546 $ 418,380
Claims and changes in estimates during fiscal year 2008 5,012,424 969,483
Claim payments (4,897,943) (613,251)
Liabilities at June 30, 2008
Claims and changes in estimates during fiscal year 2009
Claim payments
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
829,027
5,428,409
(5,443,317)
774,612
867,815
(1,020,418)
Liabilities at June 30, 2009 $ 81-4.119 S 622.009
(continued on next page) 59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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 622 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 to equal 200 percent of the total current members' basis
rates or to comply with the requirements of any applicable regulatory authority having jurisdiction over
the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual operating
contributions which are necessary to fund, on a cash basis, the Pool's general and administrative expenses
and reinsurance premiums, all of which are due and payable in the current year, plus all or any portion of
any deficiency in capital. Any year -end operating surplus is transferred to capital. Deficiencies in
operations are offset by transfers from capital and, if insufficient, by the subsequent year's member
contributions. The City has property insurance coverage in addition to the Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City's annual contributions to the Pool for the
year ended June 30, 2009, were $590,712.
The Pool uses reinsurance and excess risk- sharing agreements to reduce its exposure to large losses. The
Pool retains general, automobile, police professional, and public officials liability risks up to $350,000
per claim. The next $2,650,000 in claims are covered with another pool (APEEP). Claims exceeding
$3,000,000 are reinsured. Property and automobile physical damage risks are retained by the Pool up to
$100,000 each occurrence, each location, with excess coverage reinsured on an individual- member basis.
The Pool's intergovernmental contract with its members provides that in the event a casualty claim or
series of claims exceeds the amount of risk- sharing protection provided by the member's risk- sharing
certificate, or in the event that a series of casualty claims 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, 2009, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool's inception.
Members agree to continue membership in the Pool 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, payments for all claims and claims expenses become the sole responsibility of the
withdrawing member, regardless of whether a claim was incurred or reported prior to the member's
withdrawal. Members withdrawing within the first six years of membership may receive a partial refund
of their capital contributions. If a member withdraws after the sixth year, the member is refunded 100
percent of its capital contributions. However, the refund is reduced by an amount equal to the annual
operating contribution which the withdrawing member would have made for the one -year period
following withdrawal.
(continued on next page) 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE 9 — COMMITMENTS AND CONTINGENT LIABILITIES
Gra nts
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 general
fund or other applicable funds. 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,
2009.
Litigation
The City's corporation counsel reported that as of June 30, 2009, various claims and lawsuits were on file
against the City. The corporation counsel estimated that all potential settlements 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.
Environmental Protection Agency
The City of Dubuque has been notified that the United States Department of Justice has approved the
filing of a civil action on behalf of the United States Environmental Protection Agency against the City
seeking civil penalties and injunctive relief for illegal discharges of untreated sewage and into waters of
the United States. The State of Iowa will join the United States in bringing this civil action. The City has
had several meetings with representatives of the Department of Justice, Environmental Protection
Agency, and State of Iowa and is attempting to negotiate a settlement of the complaint. The City has also
undertaken several major projects to remedy the alleged violations.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2009. The City has additional commitments for signed construction contracts
of $12,021,259 as of June 30, 2009. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
Debt Guarantee
The City has guaranteed debt issued by Dubuque Initiatives and Subsidiaries related to the rehabilitation
of the Roshek Building. The guarantee is limited to $25,000,000.
NOTE 10 — OTHER POSTEMPLOYDIENT BENEFITS (OPEB)
The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits other Than Pensions prospectively during the year ended June 30, 2009.
(continued on next page) 61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
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 includes the
employees of the Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does not
issue a stand -alone financial report. The benefits are provided in the form of:
An implicit rate subsidy where pre -65 retirees receive health insurance coverage by paying a combined
retiree /active rate for the self- insured medical and prescription drug plan.
An explicit rate subsidy where the City pays the full cost of a $1,000 policy in the fully- insured life
insurance plan.
To be eligible 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 482 active and 28 retired members in the plan.
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.
Annual OPEB Cost and Net OPEB Obligation - The City's annual OPEB cost is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not
to exceed 30 years.
The following table shows the components of the City's annual OPEB cost for the year ended June 30,
2009, the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 945,000
Interest on net OPEB obligation
Adjustment to annual required contribution
Annual OPEB cost
Contributions made
945,000
(24 843)
Increase in net OPEB obligation 920,157
Net OPEB obligation, beginning of year
Net OPEB obligation, end of year $ 920.157
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end
of year net OPEB obligation was calculated by the actuary as the cumulative difference between the
actuarially determined funding requirements and the actual contributions for the year ended June 30,
2009.
For the year ended June 30, 2009, the City paid $233,080 for retiree claims. Plan members eligible for
benefits contributed $208,237 or 100 °0 of the premium costs. The net resulted in City contributions of
$24,843.
(continued on next page) 62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation as of June 30, 2009 are summarized as follows:
Year Ended
June 30, 2009
Percentage of Net
Annual Annual OPEB OPEB
OPEB Cost Cost Contribution Obligation
$ 945,000
2.6 °o
$ 920,157
Funded Status and Funding Progress - As of July 1, 2008, the most recent actuarial valuation date for the
period July 1, 2008 through June 30, 2009, the actuarial accrued liability was $9,117,000, with no
actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $9,117,000. The
covered payroll (annual payroll of active employees covered by the plan) was approximately $30,012,086
and the ratio of the UAAL to covered payroll was 30. -1°0. As of June 30, 2009, there were no trust fund
assets.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumption about future employment, mortality, and the health care cost trend.
Actuarially determined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented
as required supplementary information in the section following the Notes to Financial Statements, will
present multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the plan as understood by the
employer and the plan members and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that point.
The actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long -term perspective of the calculations.
As of the July 1, 2008 actuarial valuation date, the unit credit actuarial cost method was used. The
actuarial assumptions includes a 5°o discount rate based on the City's funding policy. The projected
annual medical trend rate is 11 °0. The ultimate medical trend rate is 6°o. The medical trend rate is
reduced 0.5°o each year until reaching the 6°o ultimate trend rate.
Mortality rates are from the RP2000 Group Annuity Mortality Table, applied on a gender - specific basis.
Annual retirement and termination probabilities were developed from the retirement probabilities from
the IPERS and MFPRSI Actuarial Reports as of June 30, 2007 and applying the termination factors used
in the IPERS and MFPRSI Actuarial Reports as of June 30, 2007.
Projected claim costs of the medical plan are $8,490 per year for retirees at age 60. The salary increase
rate was assumed to be -4°o per year. The UAAL is being amortized as a level percentage of projected
payroll expense on an open basis over 30 years.
(continued on next page) 63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
NOTE 11— EMPLOYEE RETIREMENT SYSTEMS
MFPRSI
The City contributes to the Municipal Fire and Police Retirement System of Iowa (Plan), which is a cost -
sharing, multiple - employer defined benefit pension plan administered by a Board of Trustees. The Plan
provides retirement, disability, and death benefits which are established by state statute to plan members
and beneficiaries. The Plan issues a publicly available financial report that includes financial statements
and required supplementary information. The report may be obtained by writing to Municipal Fire and
Police Retirement System of Iowa, 7155 Lake Drive, Suite 201, West Des Moines, Iowa, 50266.
Plan members are required to contribute 9.35 of earnable compensation and the City is required to
contribute 18.75°0 of earnable compensation. Contribution requirements are established by state statute.
The City's contributions to the Plan for the years ended June 30, 2009, 2008, and 2007, were $2,077,554,
$2,632,282, and $2,730,207, respectively, which met the required minimum contribution for each year.
IPERS
The City contributes to the Iowa Public Employees Retirement System (IPERS) which is a cost - sharing
multiple - employer 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.
IPERS issues a publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des
Moines, Iowa, 50306 -9117.
Plan members are required to contribute 4.10 °0 of their annual covered salary, and the City is required to
contribute 6.35 of annual covered payroll. Contribution requirements are established by state statute.
The City's contributions to IPERS for the years ended June 30, 2009, 2008, and 2007, were $1,314,106,
$1,200,182, and $1,071,260, respectively, equal to the required contributions for each year.
NOTE 12 — LANDFILL CLOSURE AND POSTCLOSURE CARE
State and federal laws and regulations require the Dubuque Metropolitan Area Solid Waste Agency to
place a final cover on each cell of its landfill site when filled and to perform certain maintenance and
monitoring functions at the site for thirty years after closure.
Although closure and postclosure care costs will be paid only near or after the date that each cell stops
accepting waste, the Agency reports a portion of these closure and postclosure care costs as an operating
expense in each period based on landfill capacity used as of each statement of net assets date. The
$3,574,082 reported as landfill closure and postclosure care liability at June 30, 2009, represents the
cumulative amount reported to date based on the use of 100°0 of the estimated capacity of cells 1, 2, 3,
and 4, the use of 90 °o of the estimated capacity of cells 5 and 6, and the use of 55 °o of the estimated
capacity of cells 7 and 8. The Agency will recognize the remaining estimated cost of closure and
postclosure care of $678,358 as the remaining capacity is filled.
(continued on next page) 64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
These amounts are based on what it would cost to perform all closure and postclosure care in 2009. The
Agency expects to close cells 4, 5, and 6 in 2011, and cells 7 and 8 in 2014. The Agency is making plans
to construct a second generation of cells to extend the life of the landfill to 2058. Actual cost may be
higher due to inflation, changes in technology, or changes in regulations.
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2009, funds have been restricted for closure and postclosure
costs in the amount of $3,530,472.
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, 2009 is $7,438,738, with $142,423 of
depreciation expense during the year ended June 30, 2008. The DRA lease amount is based on the
association's gross gambling receipts. During the year ended June 30, 2009, the DRA lease generated
$8,175,147 in lease revenue.
NOTE 14 — SUBSEQUENT EVENTS
On October 5, 2009, the City authorized $2,935,000 General Obligation Bonds Taxable Series 2009A
(Qualified Build America Bonds Direct Pay) to support cost of the acquisition of sewer pipeline
inspection equipment, the inspection and certification of the flood control levee system; the construction
and installation of stormwater management facilities, including the Bee Branch Creek Restoration Project,
and the reconstruction of storm sewers; the acquisition and replacement of street lights; the acquisition
and installation of fiber optic conduit in connection with street improvements and water main extensions;
the repair and improvement of the Dubuque Regional Airport, including hanger heater and terminal boiler
replacements, runway and hanger painting, hanger repairs and replacements and parking area paving; the
acquisition and replacement of Fire Department ladder and pumper trucks and ambulances; and water
utility improvements including the construction and installation of water main extensions, ADA
improvements, back -up power supply and water consumption studies and engineering. The interest rate
on the bonds range from 1.9°o to 5.6 °0, with a maturity date of June 1, 2029. The City is eligible to
receive a federal subsidy through a refundable tax credit paid to the City by the Treasury Department and
the Internal Revenue Service in an amount equal to 35 °o of the total coupon interest. The funds to repay
the bonds will be generated from fees, taxes, and debt service levy.
On October 5, 2009, the City authorized $11,175,000 General Obligation Urban Renewal Bonds Taxable
Series 2009B (Qualified Build America Bonds Direct Pay) to provide funds to pay costs to construct a
multi - story parking ramp and the construction of street, sewer, sidewalk, trail, and other public
infrastructure improvements within Dubuque Industrial Center West. The interest rate on the bonds range
from 1.5 °o to 5.5 °o, with a maturity date of June 1, 2029. The City is eligible to receive a federal subsidy
through a refundable tax credit paid to the City by the Treasury Department and the Internal Revenue
Service in an amount equal to 35 °o of the total coupon interest. The funds to repay the bonds will be
generated from parking revenue and with tax increment revenues of the Greater Dubuque Downtown
Urban Renewal District and Dubuque Industrial Center West District.
(continued on next page) 65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
On October 5, 2009, the City authorized $8,885,000 General Obligation Refunding Bonds Series 2009C.
The interest rate on the bonds range from 2.0°o to 4.0 °o, with a maturity date of June 1, 2021. Bonds are
issued to provide funds to current refund, $7,325,000 of outstanding General Obligation Bonds, Series
2001 and $2,080,000 of outstanding General Obligation Bonds Series 2002.
The City will be borrowing up to $6 million in General Obligation Urban Renewal Bonds to pay costs
associated with planning, undertaking, and carrying out of urban renewal project activities including those
costs associated with the construction of street, stormwater, sanitary sewer, water, fiber optic, parking and
other public improvements in the Historic Millwork District and funding of grants, loans, and other
financial assistance to private developers to assist in rehabilitation of existing buildings and construction
of housing development projects in the Millwork District. The funds to repay the bonds will be from the
tax increment revenues generated within the Greater Downtown Urban Renewal District.
The City has drawn $1,169,922 through November 2009, against the existing State Revolving Fund
(SRF) loans for Planning and Design, and Construction for water, stormwater, and sewer projects.
The City plans to borrow up to $8 million as a construction loan from the Drinking Water State
Revolving Fund (SRF) through the Iowa Finance Authority and receive an additional $1 million
forgivable SRF loan under the American Recovery and Reinvestment Act (ARRA) to fund the City wide
Water Meter Change Out Project. Construction loans provide a 3 °o interest rate, with .25°o annual service
fee, and a 1 °0 origination fee.
The City plans to use the Clean Water State Revolving Fund (SRF) through the Iowa Finance Authority
for significant upgrades to the Water Pollution Control Plant. The loans include construction and planning
and design with Intended Use Plan (IUP) for approximately $65 million filed. Construction loans provide
a 3 °o interest rate, with .25°o annual service fee, and a 1 °0 origination fee. Planning and Design Loans
have no interest for three years, no initiation fees, and no servicing fees.
NOTE 15 — NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
STANDARDS
The Governmental Accounting Standards Board (GASB) has issued three statements not yet implemented
by the City of Dubuque. The statements, which might impact the City of Dubuque, are as follows:
Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be
effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not
specifically excluded by its scope be classified as capital assets.
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, issued June 2008, will
be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition,
measurement, and disclosure of information regarding derivative instruments entered into by state and
local governments.
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February
2009, will be effective for the fiscal year ending June 30, 2011. This statement establishes new standards
for fund balance classifications based primarily on the extent to which a government is bound to observe
constraints imposed upon the use of the resources reported in governmental funds.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
66
CITY OF DUBUQUE, IOWA
SCHEDULE OF RECEIPTS, EXPENDITURES, AND CHANGES IN BALANCES -
BUDGET AND ACTUAL (BUDGETARY BASIS)
GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
Final to
Budgeted Amounts Actual
Actual Ongmal Final Vanance
RECEIPTS
Property tax $ 17,376,558 $ 17,050,4,0 $ 17,959,420 $ (582,862)
Tax increment financing 4,942358 4,963,583 4,963,583 (21,225)
Other City tax 11,184,470 13,814,149 13,814,149 (2.629,679)
Licenses and pernnts 3,273,944 1,340,904 1340 904 1,933,040
Use of money and property 14,412,871 12 985,806 1) 1,418,115
Intergovernmental 16,893,400 19,888363 41,310,226 (24,416,826)
Charges for fees and service 20,015,746 2 5,613,824 25,622,181 (5,606,435)
Special assessments 141,860 325,000 1,463,510 (1321,650)
Miscellaneous 12,444,07 5,618,842 9,405,618 3,038,454
Total Receipts 100,685, 102,509,891 128,874,347 (28,189,068)
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
20,865,760 21,203,436 21,487,88 622,122
11,405,265 10,861,567 11,913 985 508,7
870,7 819,57 0 30,946 60,218
8,483,260 8,562,808 8,640 948 157,688
10,071, 244 0 ,340,356 10,121,144 49,900
5,673,7 5,876,609 6,468,254 794,577
5,769,175 5, 5,4 589 2 30,464
38,575,015 40,019 989 80,211,712 41,636,697
2 7,164,635 40 932,184 56,768,506 29,603,871
128,378,75 142,883,177 20? 042 966 73,664,207
(2 7,693,480) (403 (73,168,619) 45,475,139
15,250,001 2 5,714, 147 33,000,410 ( 18,739,509 )
EXCESS (DEFICIENCY ) OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES (1)433,579) (14,659,139) (39,169)09) 26,735,630
BALANCE, BEGINNING 64,954,283 64,954,283 64,954,283
BALANCE, ENDING $ 52,520,704 $ 50,295,144 $ 25,785,074 $ 26,735,630
67
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2009
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 15 of
each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control (the level on which expenditures may not legally exceed
appropriations) is the function level 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, 2009, was amended two times during the year to allow the
City to increase function expenditures by $59,159,789, primarily for the carry - forward of unfinished
capital improvement projects and expenditure of additional grants for capital improvements.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Receipts /revenues $100,685, $ (5,381,394) $ 95,303,885 $ 74,677065 $ 70,680,970 $ 95,303,885
Expenditures /expenses 178,378,75 (10,221,016) 118 157,743 0 5, 0 6 9 ,704 77,188,539 118,157,743
Deficiency of receipts/
revenues under
expenditures /expenses ( 4,839,677 (22,8 (21346,239) (1,507,619) (22,8
Other financing sources,
net 15 259 901 17,657,764 37,917,665 4 817,364 28 100 301 37,917,665
Net
Balance, beginning
Balance, ending
Modified Governmental Enterprise
Accrual/ Funds Funds
Budgetary Accrual Accrual Modified
Basis Adtustments Basis Accrual Basis Accrual Basis Total
(12,433,57 77,497,386 10,063,807 (16,528,875) 765 10,063,807
64,954,783 108,977,819 173,882,102 66,910,216 106,971,886 173,882,102
$ 57 570 704 $ 171 47$ 705 $ 184 045 000 $ SO 721 741 $ 177 S64 568 $ 184 045 000
68
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN
FOR THE YEAR ENDED JUNE 30, 2009
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability AAL Funded Covered of Covered
Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Date (a) (b) (b -a) (a /b) (c) (b -a /c)
07/01/08 $ $ 9,117,000 $ 9,117,000 0.0 °0 $ 30,012,086 30.4 °o
69
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.
Tort Liability Fund — This fund is used to collect a special property tax levy which is then
transferred to the General Fund. The General Fund accounts for the administration and payment of
damage claims against the City.
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.
Tax Increment Financing Fund — This 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.
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.
DEBT SERVICE FUND
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.
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.
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.
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Restricted cash and pooled cash investments
LIABILITIES AND FUND BALANCES
Road Section VIII Tort
Use Tax Housing Liability
$ 1,940,037 $ 747,633 $
3911,817
973
1,9511
1,807
38,831
17,966
2,349
416,013
Total Assets $ 2,330,854 $ 809,160 $ 418,362
LIABILITIES
Accounts payable $ 149,470 $ 24,452 $
Accrued payroll 72,826 18,427 -
Intergovernmental payable 18,800 -
Deferred revenue
Succeeding year property tax - - 416,013
Other 732
Total Liabilities 222,296 61,679 416,745
FUND BALANCES
Reserved for /by
Encumbrances 347,608 21,007 -
Long -term notes receivable 1,111 -
Bond ordinance - -
Debt service - - -
Franchise agreement - - -
Endowments - - -
Unreserved, undesignated reported in
Special revenue funds 1,760,950 725,363 1,617
Capital projects funds
Permanent funds
Total Fund Balances 2,108,558 747,481 1,617
Total Liabilities and Fund Balances $ 2,330,854 $ 809,160 $ 418,362
$ 3,565 $ 1,312,179 $ 964,334 $ 113,151 $ 3,155
Special Revenue
Tax Library
Special Increment Expendable Debt
Assessments Financing Cable TV Gifts Trust Service
15,884 30,999
633,997 - -
608 51,812 1,664 586
$ 638,170 $ 4,966,746 $ 983,214 $ 144,736 $ 81,297
459,950
- $ 11,422 $ 2,915 $
10,825
459,950 11,422
178,220
3,602,755 1,332
38,625
3,602,755
178,220 1,313,944
1,332
4,955,324 359,273
610,201 30,999
623,941 31,137
3,413 84
354,528 113,515
138 $
78,142
78,142
78,142
3,155
113,599 3,155
$ 638,170 $ 4,966,746 $ 983,214 $ 144,736 $ 81,297
(continued)
EXHIBIT A -1
70
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2009
ASSETS
LIABILITIES AND FUND BALANCES
Capital Projects
Airport Sales Tax
Construction Construction
Cash and pooled cash investments $ 721,142 $ 1,780,561
Receivables
Property tax
Delinquent - -
Succeeding year - -
Accounts and other - -
Special assessments - -
Accrued interest 2,241 8,072
Notes - -
Intergovernmental 3,580 266,174
Restricted cash and pooled cash investments - -
Total Assets $ 726,963 $ 2,054,807
LIABILITIES
Accounts payable $ 50,256 $ 135,482
Accrued payroll - -
Intergovernmental payable - -
Deferred revenue
Succeeding year property tax - -
Other 3,580 -
Total Liabilities 53,836 135,482
FUND BALANCES
Reserved for /by
Encumbrances 83,779 482,100
Long -term notes receivable - -
Bond ordinance - -
Debt service - -
Franchise agreement - -
Endowments - -
Unreserved, undesignated reported in
Special revenue funds - -
Capital projects funds 589,348 1,437,225
Permanent funds - -
Total Fund Balances 673,127 1,919,325
Total Liabilities and Fund Balances $ 726,963 $ 2,054,807
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
$ - $ - $ 7,585,757
113
84,960
$ 85,073 $ 19,941 $ 13,259,323
- $ 52 $ 374,187
102,078
18,800
57,412 12,000
27,661 7,889
2,349
494,155
47,856
- 633,997
84 67,130
1,807
- 699,402
19,857 3,726,870
494,155
1,105,462
2,094,682
976,616
1,111
3,612,755
3,155
1,332
69,412
4,448,137
2,026,573
35,551)
85,073 19,889 11,164,641
$ 85,073 $ 19,941 $ 13.259,323
EXHIBIT A -1
(continued)
71
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
REVENUES
Taxes $ - $ -
Special assessments - -
Intergovernmental 4,783,768 4,142,053
Charges for services - -
Investment earnings - 25.6811
Contributions - -
Miscellaneous 34,935 35,270
Total Revenues 4,818,703 4,203,003
EXPENDITURES
Governmental activities
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
Road Section VIII
Use Tax Housing
82,602
5,493,741
4,501,435
12,085 -
5,505,826 4,584,037
(687,123) (381,034)
OTHER FINANCING SOURCES (USES)
Transfers in 618,255 -
Transfers out (253,154) -
Total Other Financing Sources (Uses) 365,101 -
NET CHANGE IN FUND BALANCES (322,022) (381,034)
FUND BALANCES, BEGINNING 2,430,580 1,1 8,515
FUND BALANCES, ENDING $ 2,108,558 $ 747,481
Special Revenue
Tax Library
Tort Special Increment Expendable Debt
Liability Assessments Financing Cable TV Gifts Trust Service
$ 161,934 $ - $ 4,942,360 $ - $ - $
250,372 - - -
161,934
(183,137)
(183,137)
36,085
6,836
293,293
22,820 33,623
353,025 21,717
660,655
5,295,385 682,372
1,158,056
4,139, 870
72,943
27,576
624,014
6,305,162 401,434
4,540
125,881
130,421
104,557
1,074,914
5,297,926 724,533 104,557 1,074,914
161,934 293,293 (2,541) (42,161) 25,864 (1,074,914)
360,037 - 1,074,914
(148,696) (1,707,334) - (28,082)
(148,696) (1,347,297) - (28,082) 1,074,914
(21,203) 144,597 (1,349,838) (42,161) (2,218)
115,817 3,155
$ 1,617 $ 178,220 $ 4,955,324 $ 359,273 $ 113,599 $ 3,155
(continued)
EXHIBIT A -2
72
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
Capital Projects
Airport Sales Tax
Construction Construction
REVENUES
Taxes $ - $ 1,529,971
Special assessments
Intergovernmental 1,124, 43(1)
Charges for services 170,370
Investment earnings 19,303 65,268
Contributions
Miscellaneous
Total Revenues 1,314,103 1,595,239
EXPENDITURES
Governmental activities
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
1,437,011 2,181,761
1,437,011 2,181,761
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (122,908) (586,522)
200,624 524,122
(509,781)
200,624 14,341
77,716 (572,181)
595,411 2,491,506
$ 673,127 $ 1,919,325
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
$ - $ - $ 6,634,265
250,372
- - 10,051,21
- 170,370
(14,296) 726 512,048
- 125,881
- 737,696
(14,296) 726 18,480,883
901
901
155,545
5,493,741
27,576
2,586 108,044
- 5,6,9,491
636,099
5,214,784
- 3,618,772
2,586 20,914,052
(1,197) (1,860) (2,433,169)
2,777,95'
(2,830,184)
(15,197) (1,860) (2,48 ,401)
100,270 21,749 13,650,042
$ 85,073 $ 19,889 $ 11,164,641
EXHIBIT A -2
(continued)
73
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.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2009
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Inventories
Total Current Assets
Total Assets
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Accrued compensated absences
Due to other funds
Total Current Liabilities
NONCURRENT LIABILITIES
Net OPEB liability
Total Liabilities
Total Other
Refuse Transit Enterprise
Collection System Funds
$ 868.830 $ $ 868.830
329.546 13.182
3.930
1.202.306
925.294
23.554
962.030
EXHIBIT B -1
342.728
3.930
925.294
23.554
2.164.336
NONCURRENT ASSETS
Capital assets
Land 36.000 36.000
Buildings 1.887.564 1.887.564
Machinery and equipment 1.676.568 3.606.348 5.282.916
Accumulated depreciation (1.490.555) (3.587.788) (5.078.343)
Net Capital Assets 186.013 1.942.124 2.128.137
1.388.319 2.904.154 4.292.473
6.380 48.133
49.983 49.124
136.037 6.658
172.453
192.400 276.368
54.513
99.107
142.695
172.453
468.768
42.092 12.026 54.118
234.492 288.394 522.886
NET ASSETS
Invested in capital assets. net of related debt 186.013 1.942.124 2.128.137
Unrestricted 967.814 673.636 1.641.450
Total Net Assets $ 1.15 3.827 $ 2.615.760 $ 3.769.587
74
CITY OF DUBUQUE, IOWA EXHIBIT B -2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
Total Other
Refuse Transit Enterprise
Collection System Funds
OPERATING REVENUES
Charges for sales and services $ 2,871,395 $ 182,495 $ 3,053,890
Other 1,254 13,765 15,019
Total Operating Revenues 2,872,649 196,260 3,068,909
OPERATING EXPENSES
Employee expense 1,760,984 1,212,197 2,973,181
Utilities 15,452 58,894 74,346
Repairs and maintenance 312,707 421,415 734,122
Supplies and services 577,093 570,460 1,147,553
Insurance 27,926 46,991 74,917
Depreciation 94,503 315,188 409,691
Total Operating Expenses 2,788,665 2,625,145 5,413,810
OPERATING INCOME (LOSS) 83,984 (2,428,885) (2,344,901)
NONOPERATING REVENUES
Intergovernmental - 1,095,946 1,095,946
Investment earnings 28,277 - 28,277
Gain on disposal of assets 50 - 50
Net Nonoperating Revenues 28,327 1,095,946 1,124, 273
INCOME (LOSS) BEFORE TRANSFERS 112,311 (1,332,939) (1,220,628)
TRANSFERS IN - 1.253,638 1.253,638
CHANGE IN NET ASSETS 112,311 (79,301) 33,010
NET ASSETS, BEGINNING 1,041,516 2,695,061 3,736,577
NET ASSETS, ENDING $ 1,153,827 $ 2,615,760 $ 3,769,587
75
CITY OF DUBUQUE, IOWA EXHIBIT B -3
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
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
Payment of interfund balances
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTI\TTIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTI\TTIES
Proceeds from sale of capital assets
Acquisition and construction of capital assets
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTI\TTIES
CASH FLOWS FROM INVESTING ACTI\TTIES
Interest received
NET INCREASE IN CASH AND CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Refuse
Collection
$ 2.838.872
(964.620)
(1.659.290)
1.254
216.216
50
(121.223)
(121.173)
28.634
123.677
745.153
$ 868.830 $
Transit
System
$ 175.747
(1.069.415)
(1.212.312)
13.765
Total Other
Enterprise
Funds
$ 3.014.619
(2.034.035)
(2,871,602)
15.019
(2.092.215) (1.875.999)
1,25 3,638 1,25 3,638
(308.259) (308.259)
1.146.836 1.146.836
2.092.215 2.092.215
50
(121.223)
(121,173)
28.634
123.677
745.153
- $ 868.830
(continued)
76
CITY OF DUBUQUE, IOWA EXHIBIT B -3
COMBINING STATEMENT OF CASH FLOWS (continued)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Total Other
Refuse Transit Enterprise
Collection System Funds
$ 83.984 $ (2.428.885) $ (2.344.901)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 94.503 315,188 409.691
Change in assets and liabilities
Increase in receivables (32.523) (6.748) (39,271)
Increase in inventories (6.179) (6.179)
Increase (decrease) in accounts payable (31.442) 34.524 3.082
Increase (decrease) in accrued liabilities 59.602 (12.141) 47.461
Increase in net OPEB liability 42.092 12.026 54.118
Total Adjustments 132.232 336.670 468.902
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 216.216 $ (2.092.215) $ (1.875.999)
77
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.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2009
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ $ 334.988 $
Receivables
Accounts
Accrued interest
Inventories 43.361 1.904
Total Current Assets 378.349 1.904
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Assets
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Due to other funds
Total Liabilities
NET ASSETS
Invested in capital assets. net of related debt
Unrestricted
Total Net Assets (Deficit)
General Garage Stores/
Service Service Printing
17.758
316
102.034
(57.620)
44.414
422.763 1.904
55.315
25.603
18.074 80.918
44.414
(18.074) 297.431
5.305
1.655
6.960
(5.056)
$ (18.074) $ 341.845 $ (5.056)
Health Workers'
Insurance Compensation
Reserve Reserve
$ 3.545.902 $ 201.765 $ 4.082.655
164.380
14.809
3.725.091
3.725.091 202.779 4.352.537
814.119
814.119
Total
164.380
1.014 15.823
45.265
202.779 4.308.123
102.034
(57.620)
44.414
622.009 1.496.748
4;.;61
1.971
622.009 1.542.080
44.414
2.910.972 (419.230) 2.766.043
$ 2.910.972 $ (419.230) $ 2.810.457
EXHIBIT C -1
78
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS (DEFICIT)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING INCOME (LOSS)
General Garage Stores/
Service Service Printing
$ 1.365.401 $ 1.824.707 $ 103.600
1.365.401
1.824.707 103,600
OPERATING EXPENSES
Employee expense 1.352.986 702.996
Utilities 24.042
Repairs and maintenance 21.371
Supplies and services 6.159 920.186 119.342
Insurance 11.925 13.202
Depreciation 7.706
Total Operating Expenses 1.371.070 1.689.503 119.342
(5.669) 135.204 (15.742)
NONOPERATING REVENUES
Investment earnings
Gain on disposal of assets 2.295
Total Nonoperating Revenues 2.295
CHANGE IN NET ASSETS (5.669) 137.499 (15.742)
NET ASSETS (DEFICIT). BEGINNING (12.405) 204.346 10.686
NET ASSETS (DEFICIT). ENDING $ (18.074) $ 341.845 $ (5.056)
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 5.246.860 $ 584.875 $ 9.125.443
282.753 24.516 307.269
5.529.613 609.391 9.432.712
2.055.982
24.042
21.371
5.578.069 900.384 7.524.140
508.753 25.139 559.019
7.706
6.086.822 925.523 10.192.260
(557.209) (316.132) (759.548)
133.439 16.044 149.483
2.295
133.439 16.044 151.778
(423.770) (300.088) (607.770)
3.334.742 (119.142) 3.418.227
$ 2.910.972 $ (419.230) $ 2.810.457
EXHIBIT C -2
79
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
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
Proceeds from mterfund balances 316 - L655
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTI\TTIES
Proceeds from sale of capital assets
CASH FLOWS FROM INVESTING ACTI\TTIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTI\TTIES
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 in receivables
Decrease in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
General Garage Stores/
Service Service Printing
$ 1,365,401 $ 1,824,707 $ 103,600
(18,084) (975,358) (113,615)
(1,354,365) (700,810)
(7,048)
(1,379)
Total Adjustments (1,379)
148,539 (10,015)
2,295
(6,732) 150,834 (8,360)
6,732 184,154 8,360
$ - $ 334,988 $
$ (5,669) $ 135,204 $ (15,742)
7,71)6
11,856 517
(8,413) 5,210
2,186 -
13,335 5,727
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ (7,048) $ 148,539 $ (10,015)
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 5,203,172 $ 584,875 $ 9,081,755
(6,101,730) (1,078,126) (8,286,913)
(2,055,175)
282,753 24,516 307,269
(615,805)
140,458
(475,347)
(468,735) (953,064)
1,971
2,295
18,747 159,205
(449,988) (789,593)
4,021,249 651,753 4,872,248
$ 3,545,902 $ 201,765 $ 4,082,655
$ (557,209) $ (316,132) $ (759,548)
7,706
(43,688) - (43,688)
12,373
(14,908) (152,603) (170,714)
807
(58,596) (152,603) (193,516)
$ (615,805) $ (468,735) $ (953,064)
EXHIBIT C -3
80
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.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2009
EXHIBIT D -1
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 314.385 $ 244.918 $ 226.430 $ 332.873
Accounts receivable 7.235 5.559 7.235 5.559
Accrued interest 5.530 5.530
Total Assets $ 321.620 $ 256.007 $ 239.195 $ 338.432
LIABILITIES
Due to other agency $ 321.620 $ 256.007 $ 239.195 $ 338.432
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 645.545 $ 145.372 $ - $ 790.917
Accrued interest 3.445 25.165 25.372 3.238
Total Assets $ 648.990 $ 170.537 $ 25.372 $ 794.155
LIABILITIES
Due to other agency $ 648.990 $ 170.537 $ 25.372 $ 794.155
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments $ 959.930 $ 390.290 $ 226.430 $ 1.123.790
Accounts receivable 7.235 5.559 7.235 5.559
Accrued interest 3.445 30.695 30.902 3.238
Total Assets $ 970.610 $ 426.544 $ 264.567 $ 1.132.587
LIABILITIES
Due to other agency $ 970.610 $ 426.544 $ 264.567 $ 1.132.587
81
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well -being have changed over time.
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax.
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future.
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place
and to help make comparisons over time and with other governments.
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City
provides and the activities it performs.
83
88
92
100
102
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003;
schedules presenting government -wide information include information beginning in that year.
82
CITY OF DUBUQUE, IOWA
NET ASSETS BY COMPONENT
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
211113 211114 211115 20116
Governmental activities
Invested in capital assets, net of related debt $ 212,767,403 $ 231,863,231 $ 249,881,646 $ 267,762,059
Restricted 29,306,124 31,931,803 24,180,874 21,693,357
Unrestricted 11,528,644 11,322,661 11,236,870 15,132,486
Total governmental activities net assets $ 253,602,171 $ 275,117,695 $ 285,299,390 $ 304,587,902
Business -type activities
Invested in capital assets, net of related debt $ 98,706,116 $ 92,301,043 $ 93,036,089 $ 88,802,536
Restricted 553,677 554,005 554,205 554,294
Unrestricted 6,308,801 10,502,939 12,854,730 13,258,072
Total business -type activities net assets $ 105,568,594 $ 103,357,987 $ 106,445,024 $ 102,614,902
Primary government
Invested in capital assets, net of related debt $ 311,473,519 $ 324,164,274 $ 342,917,735 $ 356,564,595
Restricted 29,859,801 32,485,808 24,735,079 22,247,651
Unrestricted 17,837,445 21,825,600 24,091,600 28,390,558
Total pnmary government net assets $ 359,170,765 $ 378,475,682 $ 391,744,414 $ 407,202,804
200720082009
$ 288,978,975 $ 296,143,451 $ 298,855,346
23,900,328 31,970,724 27,171,123
21,921,571 18,987,841 (5,280,715)
$ 334,800,874 $ 347,102,016 $ 320,745,754
$ 91,483,532 $ 95,104,575 $ 120,473,286
554,318 554,505 770,157
11, 14,900 11,31 806 12,321,125
$ 103,252,750 $ 106,971,886 $ 133,564,568
$ 380,462,507 $ 391,248,026 $ 419,328,632
24,454,646 32,55,229 27,941,280
33,136,471 30,300,647 7,040,410
$ 438,053,624 $ 454,073,902 $ 454,310,322
TABLE 1
83
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST SEVEN 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 business -type activities expenses
$ 15,817,05 $ 16,605,-181 $ 18,636,877
14,453, 558 12,817,110 17,088,983
815,524 1,290,619 654,469
7,367,147 7,819,111 8,474,183
Fiscal Year
2003 2004 2005 2006
$ 18,892,980
16.390.322
678,748
9,6
9,431,702 12,66 557 9 ,680,046 8,541,167
4,211, 3,773,136 4,048,475 3,868,687
1,605,326 1,248,498 1,298,367 1,460, 730
53,70))31 56,276,810 5 5
Total governmental activities expenses
Business -type activities
Sewage disposal works 4,655,696 5,282,016 4,656,172 5,298353
Water utility 4,145,983 1368,738 123? 489 4,700,483
Stormwater utility - 1,181968 1,114,811 1,153,628
Parlang facilities 1,445,434 1,655,429 1,604,071 1,629,4
Amenca's River Project 414,830 1,064,701 515,570 82,617
Refuse collection 2,140,807 2,238,254 2.202.800 2,463,795
Transit system 2,055,248 2,257,078 2.326,908 2,555,080
14,857, 18,051,181 16,65 17,883,383
Total primary government expenses $ 68,560,229 $ 74,327,994 $ 76,534,221 $ 77,343,522
Program Revenues
Governmental activities
Charges for services
Public safety $ 1,586, $ 1,785,787 $ 1,900,938 $ 1,809,481
Public works 3367,720 3392.650 3,371,073 3370,291
Culture and recreation )145,435 2,282 083 2,143,246 2,218315
Other activities 764,732 873,457 945,712 895 020
Operating grants and contnbutions 13,677,503 1)197,307 14,603,106 12 902,410
Capital grants and contributions 3,447,052 5,153,258 6,919,296 6,881,573
Total governmental activities program revenues 21988,697 2505,442 29,883,371 28,077,990
Business -type activities
Charges for services
Sewage disposal works 1300,156 4,719,491 4,55 587 5,077,491
Water utility 3,975,598 1307,238 4,224,074 4,669340
Stormwater utility - 754,101 684,570 928,850
Parlang facilities 1,4 1.643,490 1,889,937 1,886.642
America's River Project 147,695 881,089 26,061 51,373
Refuse collection 1,981,105 2,157,285 ) )83,677 2397,525
Transit system 201,367 319,216 389,106 341,743
Operating grants and contnbutions 880,822 825,538 651,967 920,762
Capital grants and contributions 11,938,797 11,007,676 3,030,378 2,769,657
Total business -type activities program revenues 24,852,686 26.615,121 17,73? 357 19,043,383
Total primary government program revenues $ 49,841,383 $ 52300,566 $ 47,615,728 $ 47,121,373
2007 2008 ?009
$ 70,376,7 $ 16,966,710 $ 22,038,765
16,505,560 18,847,068 19,079,688
750,367 800,566 849,737
9,837, 10,857,409 17,640,716
11, 965,805 11 961, 584 12,693,140
4,940,154 5,804,003 6,473 908
1,400,748 ?,577,417 3,164,176
65,735,657 67,814, 76,889,080
5,814,076
4,780,063
1,198,675
1,611,447
434,667
2,496,018
760,45
6,141,5 6326,708
4,814,692 6,100,491
1,706,735 2 ,138,198
2,173,110 2,147,405
126,699 61 977
7,774,050 2,788,665
7 ,703, 0 83 ?,6 ?5,145
19,095,405 70390,793 77 ,188,53 9
$ 84,831,062 $ 88,205,050 $ 99,077,619
$ 1,857374 $ 2,088,773 $ 2,020,675
4,83 4,061,883 4,456364
7 , 7 51,562 ?,109,571 7 , 7 7 9 ,688
1,074,550 1382,889 1,557,507
11,641 904 11,709,173 1 2,599 067
23,741, 282 8,032,60? 4,811,7
45,406,403 2 77,775 070
5,750,437 5,484,07 5,
4,743,896 4,875,530 53
1,777,743 1,766,334 7 , 7 91, 7 49
1,977,757 2 ,141,607 7 , 77 4,185
3,099 2,140 -
2,64 2, 251 2 ,710,583 2,87
237,088 195,817 196,260
1,167 344 1,209,636 1,095 946
1,670,874 2,830,263 3,613321
18,928 984 21,215,089 23 518,787
$ 64,335387 $ 50,600,780 $ 51,244,757
(continued)
TABLE 2
84
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Net (Expense) /Revenue
Governmental activities
Business -type activities
Fiscal Year
2003 2004 2005 2006
$ (28,713,534) $ (30,591,368) $ (29,998,029) $ (31,382,149)
9,994,688 8,563 940 1,079,536 1,160,000
Total primary government net expense $ (18,718,846) $ (22,027,428) $ (28,918,493) $ (30,222,149)
General Revenues and Other Changes in Net Assets
Governmental activities
General Revenues
Property taxes $ 18,041,049 $ 18,588,367 $ 19,767,492 $ 19,716,620
Local option sales tax 6,492,203 7,105,183 6,963,124 7,336,124
Hotel /motel tax 970,232 1,314,114 1,383,660 1,862,439
Utility franchise fees - 862,275 1,310,064 1,521,201
Gaming 9. 11,631,022 11,694,105 14,034,847
Unrestricted investment earnings 1,749,301 497,361 1,190,337 1,081,141
Gain/doss) on sale of capital assets (149,650) 175,231 170,64 77,627
Other 1,228,232 638,681 560,789 572,602
Transfers (7,720,462) 10 956,246 (1,684,581) 5,033,974
Total governmental activities 30,150,503 51,768,480 41,355,632 51,236,575
Business -type activities
General Revenues
Property taxes 506,054 - - -
Unrestricted investment earrungs 321,447 181,674 322,884 339,599
Gain/doss) on sale of capital assets (168,001) 25 36 703
Transfers 7,720,462 (10956,246) 1,684,581 (5,033,974)
Total business -type activities 8,379,962 (10,774,547) 2,007,501 (4,693,672)
Total primary government $ 38,530,465 $ 40,9 $ 43,363,133 $ 46,542,903
Change in Net Assets
Governmental activities
Business -type activities
Total primary government
$ 1,436,969 $ 21,177,112 $ 11,357,603 $ 19,854,426
18,374,650 (2,210,607) 3,087,037 (3,533,672)
$ 19,811,619 $ 18 966,505 $ 14,444,640 $ 16320,754
2007 2008 ?009
$ (20,329, 254) $ (38,429,466) $ (49,163,110)
(166,421) 825,196 1,330,248
$ (20,495,675) $ (37,604, $ (47,832,862)
$ 21,656 908 $ )2,744,563 $ 23,716,819
7,817,403 8,020,889 7,649,853
1,569,743 1,622,455 1,611 954
1,49"),Q 1,516,123 1,486, 292
15 556,551 15 346,468 9.627.391
1,870,403 7 ,741,4 90 7 , 7 15,413
07,575 407,503
586,931 898,241 918,605
(7,633) (7,757,155) (24,826982)
50 543, ? ?6 50,730,608 22,806,848
796,636 630,049 433,148
- 11,736 2304
7 , 633 7,757,155 24,826 987
804,269 2,893, 25,
$ 5 134 7 ,4 95 $ 53,624,548 $ 48,069,282
$ 30,213972 $ 1 2301,142 $ (26356)6 2)
637,848 3,719,136 26,5
$ 30,851,820 $ 16,020,278 $ 236,420
TABLE 2
(continued)
85
CITY OF DUBUQUE, IOWA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
General Fund
Reserved
Unreserved
Fiscal Year
211113 211114 211115 211116
$ 4,573,723 $ 3,233,335 $ 3,169,453 $ 1,477,141
12,218,787 13,68 5,063 13, 706,134 16,050, 997
Total general fund S 16.79 510 $ 16918398 $ 16.87 587 S 17.5_'8.138
All Other Governmental Funds
Reserved $ 14,525,251 $ 14,231,390 $ 13,607,759 $ 15,564,016
Unreserved, reported in
Special revenue funds 11,886,631 9,720,412 5,777,233 7,277,471
Debt service fund - (68,569) (56,320)
Capital projects funds 5,846,016 7,353,593 11,191,461 (981,248)
Permanent funds 70,091 71,373 73,628 83,367
Total all other governmental funds S 3 3 7989 $ 31 308 199 $ 30 593 761 S 21 943 606
2007 2008 2009
$ 4,455,303 $ 1,699,825 $ 4,864,701
17,827,631 17,982,016 14,2(1)6,181
$ 1' ' 934 $ 19 681 841 $ 19 070 88
$ 13,942,519 $ 31,887,038 $ 19,634,305
7,586,898
4,195,354
115,825
7,431,931 5,981,390
7,875,448
33,958
5,659,2 14
35,550
s_12.218.32: $ 31.310.459
TABLE 3
86
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SEVEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2(11)3 211114 2(11)5 211116
Revenues
Taxes $ 25,508936 $ ,7,861, 273 $ ,9,430,135 $ 30,043,167
Special assessments 561,406 717,305 197,195 3,,,,14
Licenses and permits 753, 1,063,081 1,078,7?? 965,71?
Intergovernmental 17,,49,,90 17,057,994 18,370,358 15,0? 1,7??
Charges for services 5,3,5,031 5,666307 5, 6,620,243
Fines and forfeits 465,787 241,57? ,67,536 204,201
Investment earnings 1,750,519 50, 93, 1,197,691 1,096,445
Contnbufions 447,960 345,415 306,809 246,908
Gaming 9,539,598 11,631,022 11,694,105 14,034,847
Miscellaneous 1,312,348 1,139,057 1,573,305 1,106,991
Total revenues 62,914,865 66,,,5958 70,034,398 69,662,450
Expenditures
Current
Public safety 15,278,654 16,764,510 18,652,246 19,535,369
Public works 11,860,004 10,723,5,7 21301, 239 11,605,567
Health and social services 749,435 7,1 906 66 ?, ?31 715,598
Culture and recreation 7,515,5?? 7,470,264 8,180,832 0 , 00 8,46?
Community and economic development 9,010,868 11 924,011 9,825,470 0 ,981,645
General government 3,835,609 4,, ?7,335 4,0, ?,785 4,090,866
Debt service
Principal ?,009,986 2,117,773 1,769 960 13 25,970
Interest 1,668,019 1,304,802 1,240,427 1,493,504
Capital projects 9,930311 6,865,119 8,226,840 14,5
Total expenditures 61,858,408 62,119,247 73,882,030 73,2753
Excess ( deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of bonds - 13,682
Issuance of refunding bonds 150,000 795,000 7,277,665 1,515,750
Discount on bonds - (58,487) -
Payment to refunded bonds escrow agent (150,000) - - (1,494,371)
Transfers in 5,367,986 8,662300 1, 981,655 7,334,605
Transfers out (21,073,805) (15,060,669) (16,105,184) (11904,890)
Sale of capital assets 117, 264,344 170,642 150,491
Total other financing sources (uses) (15,588,580) (5339,0, 4, ?66, ?91 (4,384,733)
Net change in f u n d balances $ ( 1 4 532 123) $ (1 2 32 314) 418 659 $ (7997604)
Debt service as a percentage of noncapital expenditures
1,056,457 4,106,711
7 37°o 6 3, °o
(3,847,632) (3,612,871)
5 46 °o 4 99 °o
2007 2008 2009
$ 37,576,575 $ 33,898,69? $ 34,454,146
586,45 177,585 )50,37?
1,05 1,153,4,9 1,088386
16,714,703 14, 756,573 15,796,8
7,351,191 7,833,151 8,0,9,189
158,360 188,603 199,839
1913,4 7,731953 2,206382
1,168,463 6,134,002 1369,759
15 556,551 15346,468 9,627,391
1,149,546 1, 269376 1,000,679
78,208,114 8 2,989,782 74,677 965
20,743,196 21,542,661 21335,1
12,506378 10,331,107 14,2 61,551
783,,0 7 815,873
10,2 44,2 44 10,277,787 12.227.506
11,695,90? 11,847,51 11 $53,,7
4,441,043 6310 939 5,836,83
1,663339 1, 2,169,678
1,412,012 2,406,431 3,095,166
8,777,757 15,351,848 24, 274,1,0
71,716,580 86,628304 95 969, ?04
6,491,534 (3,638,5 (21346,239)
743,5 23,083,696 5,905,000
- ?,965,000 -
- (266,1 (48,516)
- (2,87 -
10,394,726 14,801,589 7,451,15
(11,789,548) (18,185,109) (9,084,228)
2,811,483 ?, 5
2,160, 77,475,708 4,817364
R_ti51 7g6 $ 1 g 7g6 6g6 $ (165? 5
5 01°o
655 ° 768 °o
TABLE 4
87
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 5
Real Property Exemptions Total Ratio of Total
Taxable Value to
Levy Fiscal Taxable Assessed Taxable Assessed Total Assessed Total Direct
Year Year Value Value Real Property Value Value Value Tax Rate
1998 2000 $ 1,389,35? $ 1,990,428 $ 10,018 $ 1,379,334 $ 1 990,-128 69 30 10 71601
1999 2001 1377,518 2,014,897 10,194 1367,321 2,011,897 6786 1106712
2000 2002 1,429,0 ?,050,019 10,097 1,418 928 ?,050,019 69 22 10 76080
2001 2003 1,540,206 2,317,9 10,141 1,530,065 2317,9 66 01 10 21200
2002 2004 1,57 2,350317 9,694 1,563,082 2350317 66 51 10 27303
2003 2005 1,666,033 ?,575,400 9,599 1,656,434 ?,575,400 64 32 10 07200
2004 2006 1,710334 ?,679,078 9,862 1,700,47 2,679,078 63 47 9 69910
2005 2 007 1,780354 2,804,568 9,122 1,771,232 2,804,568 63 16 9 98030
2006 2008 1,823304 2,870,178 8,939 1,811365 2,870,178 63 21 10 31690
2007 2009 1,949,071 3,171,681 9,298 1,039,773 3,171,681 61 16 9 96904
88
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(TAX RATES PER $1,000 ASSESSED VALUE)
TABLE 6
Dubuque Board of Ratio of
Levy Fiscal Dubuque School Education and Area 1 Voc. Dubuque Dubuque City
Year Year City District Independents Tech County Total to Total
1998 2000 $ 10 71601 $ 11 53111 $ 0 56187 $ 0 55128 $ 5 54016 $ 28 90043 37 08 0 0
1999 2001 11 06712 12 17096 0 50467 0 56995 5 60750 29 92020 36 99
2000 2002 10 76080 13 50444 0 54806 0 57072 5 73669 31 12071 34 58
2001 2003 10 21200 13 73882 0 55492 0 57507 5 60064 30 68145 33 28
2002 2004 10 27303 13 84768 0 61686 0 57791 5 59515 30 91063 33 23
2003 2005 10 07200 14 27491 0 57269 0 59804 6 08923 31 60687 31 87
2004 2006 9 69910 15 09695 0 60226 0 60517 6 08416 32 08764 30 23
2005 2007 9 98033 15 92538 0 60802 0 61127 6 17924 33 30424 29 97
2006 2008 10 31690 16 40925 0 63160 0 61 6 42691 34 39736 29 99
2007 2009 9 96904 16 89000 0 95250 0 55713 6 41459 34 78326 28 66
Source: Dubuque County Auditor's Office
89
CITY OF DUBUQUE, IOWA TABLE 7
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
Taxpayer
Kennedy Mall
Medical Associates Realty LP
Otto A LLC
Nordstrom, Inc
The McGraw Hill Companies Inc
Walter Development LLC
Platinum Holdings LLC
Iv1inglewood Limited Partnership
Asbury Dubuque LLC
Lexington Dubuque LLC
American Trust & Savings Bank
Plaza 2l0Inc
Interstate Power Company
Peoples Natural Gas
A Y McDonald Manufacturing Co
lT S West Communications
Source: Dubuque County Auditor's Office
$ 143,505
2009
Taxable
Assessed Value Rank
$ 26,372 1
19,157
17,500 3
16,884 4
11,437 5
11,288 6
11,179 7
9,948 8
9,896 9
9,844 10
Percentage of
Total City
Taxable
Assessed
Value
83 00
60
53
36
36
35
31
31
31
2000
Taxable
Assessed Value Rank
$ 19,990 3
9,955 5
12,854 4
7,366 9
7,278 10
7,861 8
53,944 1
20,395
8,150 7
9,199 6
4.51% $ 156,992
Percentage of
Total City
Taxable
Assessed
Value
Effective 2001, utility companies (Alliant Energy /Interstate Power and Aquila Natural Gas) pay excise tax on revenue to the state
rather than property taxes
1 00 0
50
65
37
37
39
2 71
1 02
41
46
7.88%
90
CITY OF DUBUQUE, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Fiscal Total Tax Current Tax
Year Levy (1) Collections
2000 16,497 16,380
2001 17,163 16,662
2002 17,147 16,941
2003 1 5,328 15,215
2004 16,208 15 X37
2005 16,408 16,383
2006 16,2 29 16,146
2007 17,216 17,193
2008 18,211 18,160
2009 18, 18,670
Percent of
Current Taxes
Collected
Delinquent
Tax Total Tax
Collections Collections (2)
99 3 115 16,495
97 1 120 16,782
98 8 127 17,068
99 3 216 15,431
983 11 15948
99 8 20 16,403
00 5 7 16,148
999 4 17,197
99 7 3 18,163
98 3 5 18,675
( l) Includes tax increment levy
(2) Includes taxes collected in June by the County but not received by the City until July
Ratio of Total
Tax
Collections to
Total Tax
Levy
Outstanding
Delinquent
Taxes
100 0 138
978 150
00 5 2 38
100 7 130
98 4 207
100 0 196
00 5 182
99 9 174
997 215
98 3 262
TABLE 8
Ratio of
Delinquent
Taxes to Total
Tax Levy
08
09
l4
08
l3
l2
11
l0
l2
l4
91
CITY OF DUBUQUE, IOWA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business -Type Activities
Tax Tax
General Increment Increment General
Fiscal Obligation Financing Financing Loans Obligation Capital Loan Revenue Loans
Year Bonds Bonds Notes Payable Bonds Notes Bonds Payable
2000 $ 4.522.500 22 $ 4,378,669 $ - $ - $ 3,572,500 $ - $ 2,0 5 ,000 $ -
2001 3,40 000 5,963,585 - - 9,00, 000 - 1,890 -
200 20,94 ,000 ,,873,15, - - 3,10,,000 - 1,720,000 -
2003 19,865,000 4,943,169 - - 5,140,000 - 1,,40,000 -
2004 19,010 3,820,394 65, 000 - 6,660,000 - 1,3:i0,000 -
2 '005 24,960 3,450,820 622,211 - 8,090,000 - 1,1:i0,000 -
2006 24,165,750 3,040,304 590,439 - 11,619,250 - 940,000 -
2007 22,990 2,594,831 1,279,885 - 11,090,000 - 720,000 -
2008 21,860 000 25,136,402 1,279,636 - 11,570,000 611,977 490,000 -
2009 26,080 24,611,676 1,169,684 150 14,65 3,914,076 1,445,000 390,890
Note Details regarding the City's outstanding debt can be found in the notes to the financial statements
(1) Population and personal income data can be found in Table 17
* Personal Income unavailable at report date
Percentage Per
Total Primary of Personal Capita
Government Income (1) (1)
$ 14,528,669 1 00° 257
20,263,585 1 34°0 351
31,643,155 ,05 °o 549
31,488,169 1 98°0 546
31,495,394 1 85°0 546
38,273,0312 16 °o 663
40,355,743 2 17 °o 700
38,674,716 2 01°0 670
60,948,015 3 06° o 1,057
72,416,326 * 1,255
TABLE 9
92
CITY OF DUBUQUE, IOWA TABLE 10
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS, EXCEPT PER CAPITA AMOUNT)
General Percentage of Percentage of
Fiscal Obligation Taxable Value Taxable Value Assessed Value Assessed Value Per
Year Bonds (1) of Property' of Property' of Property' of Property Capita
_ "ow $ 4,523 $ 1,379,334 0 33°0 $ 1,990,428 0 23° ° 80
2001 3,405 1,367,324 0 n500 2,014,897 0 17°0 59
2002 20,945 1,418,928 1 48 °0 2,0 0,019 1 02 363
2003 19,865 1,530,057 1 30°0 2,317,926 0 86°0 344
2004 19,010 1,563,082 1 22 2,350,317 0 81 °0 330
2005 24,960 1,656,434 1 51 °0 2,575,400 0 97 °0 433
2006 24,166 1,700,472 1 42°0 2,679,078 0 90°0 419
2007 22,990 1,771,232 1 30°0 2,804,568 0 82°0 399
2008 21,860 1,814,365 120 °° 2,870,178 076 °° 379
2009 26,080 1,939,773 1 34 °0 3,171,681 0 82 452
(1) Excludes general obligation bonds reported in enterprise funds
93
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF J[JNE 30, 2009
Jurisdiction
Overlapping:
Dubuque County 1,380,000
Dubuque Public School District
Northeast Iowa Community College 1,080,000
Total Overlapping
Total
Source: Dubuque County Auditor and Northeast Iowa Community College.
(1) Excludes general obligation bonds reported in enterprise funds.
TABLE 11
N et General
Obligation Percentage Amount
Bonded Debt Applicable Applicable to
Outstanding to Citv Government
Direct, City of Dubuque, Iowa $ 26,080,000 (1) 100.00 °o $ 26,080,000
59.89 826,482
23.81 257,148
2,460,000 1,08 3,6 30
$ 28,540,000 $ 27,163,630
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 responsible for repaying the debt of each overlapping government.
94
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Debit limit
TABLE 12
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
$ 99,521 $ 100,715 $ 102,359 $ 115,896 $ 117,516 $ 133,119 $ 138,789 $ 115,101 $ 148,824 $ 163,621
Total net debt
applicable to limit 10,511 18,687 30,250 30,271 30,185 37,177 39,443 38,060 60,485 76,182
Legal debit margm $ 89,010 $ 82,058 $ 7 $ 85,625 $ 87,331 $ 95,972 $ 99,346 $ 107,341 $ 88,339 $ 87,439
Total net debt
applicable to the debt
limit as a percentage
of debt limit
w
1056 °o 1855 °o
79 55 ° 26 12 °o
Legal Debt Margin Calculation for Fiscal Year 2009
Estimated actual value
Debt limit - 5°») of total actual valuation
Debt applicable to limit
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund)
7 5 69 °o 7707 °
2842 °o 2618 °o
4064 °o 4656 °o
$ 3,27
$ 163,620,641
76,181,766
Legal debt margin $ 87,438,875
CITY OF DUBUQUE, IOWA
REVENUE BOND COVERAGE
PARKING BONDS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
PARKING BONDS
Net
Revenue
Available
Fiscal Gross Operating For Debt Debt Service Requirements
Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage (3)
2000 1.278 582 696 165 93 258 2.70
2001 1.552 717 835 170 86 256 3.26
2002 1.452 737 715 180 79 259 2.76
2003 1.484 847 637 190 71 261 2.44
2004 1.659 971 688 200 63 263 2.62
2005 1.934 960 974 210 54 264 3.69
2006 1.933 977 956 220 44 264 3.62
2007 2.113 1.014 1.099 230 34 264 4.16
2008 2.224 1.495 729 240 23 263 2.77
2009 2.270 1.412 858 250 12 262 3.27
WATER UTILITY BONDS
Net
Revenue
Available
Fiscal Gross Operating For Debt Debt Service Requirements
Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage (3)
2009 5.391 5.196 195 - 30 30 6.50
(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.
TABLE 13
96
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
Source: Cash basis receipt ledgers.
Fiscal Year Water Receipts Sewer Receipts
2000 $ 4.055.270 $ 4.834.413
2001 4.135.930 4.387.111
2002 4.233.908 4.319.655
2003 4.154.899 4.252.098
2004 4.350.338 4.466.035
2005 4.340.789 4.478.205
2006 4.798.408 4.920.376
2007 4.856.353 5.276.454
2008 5.020.001 5.481.074
2009 5.358.419 5.821.251
TABLE 14
97
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST FOUR FISCAL YEARS *
Fiscal
Year
Residential
*Prior six years information not available.
TABLE 15
Commercial Industrial Government Total
2006 19.813 1.820 73 35 21.741
2007 19.914 1.839 74 38 21.865
2008 19.970 1.878 70 45 21.963
2009 20.058 1.895 72 48 22.073
98
CITY OF DUBUQUE, IOWA TABLE 16
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2009
Customer
Rousselot Inc
Swiss Valley Farms
Mercy Medical Center
Loras College
Dubuque Community Schools
IIrnversity of Dubuque
City of Dubuque Sewer Treatment
Alliant Power Company
Inland Protein Corporation
Clarke College
Western Dubuque Biodiesel
Finley Hospital
Tablemound Mobile Home Park
Premier Linen & Dry Cleaning
Water
Receipts
$ 207,857
68,055
56,268
47,312
46,462
43,062
35,805
35,059
33,141
32,478
Total Receipts $ 5,358,419
Rank
1
2
3
4
5
6
7
8
9
10
Percentage of
Total Water Sewer
Receipts Receipts
3 88
1 27
1 05
0 88
0 87
0 8
067
065
0 62
061
0 0 $
313,616
1611,956
87,748
53,531
53,277
127,933 3
77,428 5
48,720 8
46,145 9
45,6911 111
$ 5,821,251
Rank
1
4
6
7
Percentage of
Total Sewer
Receipts
539 °0
2 76
1 51
1192
1192
2 2 11
1 33
0 84
079
0 78
99
CITY OF DUBUQUE, IOWA TABLE 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Year Population
2'000 56,467
2001 57,686
200 57,686
2003 57,686
2004 57,686
_ '005 57,686
2006 57,686
2007 57,686
2008 57,686
2009 57,686
* Unavailable at report date
Public
Per Capital School
Personal Median Enrollment Unemployment
Personal Income Income (1) Age (2) (3) Rate (4)
$ 2,293,137 $ 25,691 34 9,697 2 7
2,345,539 26,309 34 9,680 4 0
2,421,441 26,760 37 9,906 3 9
2,491,982 27,631 37 10,122 4 0
2,695 , 29,549 37 10,428 4 4
2,807,6"2,000 30,650 37 10,547 4 5
2,983 000 000 32,290 37 10,733 3 5
3,074,666 33,290 37 10,727 3 7
3,206 000 000 34,571 38 10,614 3 8
* * 37 10,697 6
Sources:
(1) U S Department of Commerce, Bureau of Economic Analysis
(2) Bureau of Census 2000 Census
(3) Dubuque Community School District
(4) Iowa Department of Employment Services as of June 30
100
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND YEAR 2000
Employer
Source: Greater Dubuque Development Corp
2009 2000
Percentage of Percentage of
#of Total City #of Total City
Employees Rank Employment(1) Employees Rank Employment(1)
Dubuque Community Schools 1, 1 3 76 °° 1,500 2 3 10 °°
John Deere (2) 1.465 2 2 82 2,250 1 4 64
IBM( (3) 1,300 3 2 50
Mercy Mledical Center 952 4 183 1,500 2 310
Finley Hospital 900 5 173 850 8 175
Medical Associates 826 6 1 59 950 6 1 96
Eagle Window & Door 750 7 1 44 450 10 93
City of Dubuque 657 8 1 26
Prudential Retirement 590 9 1 13
Dubuque Racing Association 525 10 1 01
Farmland Foods 1,300 4 2 68
Times Mirror (Formerly Wm C Brown) 1,000 5 2 06
Interstate Power Company 930 7 1 92
Flexsteel (4) 825 9 1 70
9,920 11,555
(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
(3) Anticipated employment Actual number not available at this time
(4) Flexsteel had numerous layoffs in 2007
TABLE 18
101
CITY OF DUBUQUE, IOWA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTDIENT
LAST TEN FISCAL YEARS
TABLE 19
0
N
Full -Time Equivalent Employees as of June 30
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009
Public Safety
Emergency Communications 9 00 10 00 10 00 10 00 10 00 10 00 11 00 11 00 11 00 13 00
Fire 90 00 90 00 90 00 90 00 90 00 90 00 90 00 90 00 90 00 90 00
Police 95 00 95 00 96 00 97 00 97 00 97 00 99 00 100 00 101 00 108 67
Building Services 7 00 7 00 7 00 7 00 7 00 7 00 7 00 7 00 7 00 8 00
Public Works
Public Works 81 00 81 00 83 00 86 02 87 30 88 55 87 00 87 00 87 00 88 00
Engineenng 22 00 24 00 24 00 24 00 24 00 24 00 25 00 25 00 25 00 26 00
Health & Social Services
Health Services 5 00 5 00 5 00 5 00 5 00 5 00 5 00 5 00 4 00 4 00
Human Rights 2 00 2 00 2 00 2 00 2 00 2 00 3 00 3 00 3 00 3 00
Culture and Recreation
Civic Center 9 15 9 15 9 15 9 15 9 15 9 15 1 15 0 15 0 15 0 15
Library 17 00 18 00 18 00 18 00 18 00 18 00 18 00 18 00 18 00 18 00
Park 20 92 20 92 21 92 21 92 21 92 21 92 21 92 21 92 21 92 21 92
Recreation 8 93 8 93 8 93 8 93 8 93 8 93 8 93 7 93 7 93 7 93
Community & Economic Development
Community / Economic Dev 5 00 5 00 5 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00
Housing Services 18 00 18 00 20 00 20 25 20 00 21 00 21 00 20 25 18 00 22 00
Planning Services 7 00 7 00 7 00 7 00 7 00 7 00 8 00 8 00 8 00 8 00
General Government
Airport 1300 1300 1300 1400 1300 1300 1300 1323 1200 1200
Cable TV 3 00 3 00 3 00 2 00 2 00 2 00 2 00 2 00 2 00 2 00
City Clerk's Office 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00 3 00
City Manager's Office 9 00 9 00 9 00 11 00 10 00 10 00 11 00 11 00 11 00 13 50
Finance 16 00 16 00 16 00 16 00 15 00 14 00 14 00 14 00 14 00 14 00
Legal 2 00 2 00 2 00 2 00 2 00 2 00 2 62 3 00 3 00 4 00
Information Services 6 00 6 00 6 00 6 00 6 00 6 00 6 00 6 00 7 00 7 00
Business Type
Water 23 00 23 00 23 00 23 00 23 00 23 00 23 00 23 00 23 00 23 00
Water Pollution Control 19 00 19 00 18 00 18 00 18 00 18 00 18 00 18 00 18 00 18 00
Parking 8 00 9 00 11 00 11 50 10 50 10 50 8 00 8 00 7 00 7 50
Transit 12 00 12 00 7 50 8 00 7 00 7 00 8 55 8 00 7 00 7 00
Total 511.00 516.00 518.50 523.77 519.80 521.05 518.17 516.48 512.00 532.67
Source: City Budget Records
Departments with employees who are allocated to more than one function are reflected IIi area with largest number of employees
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAMI
LAST TEN FISCAL YEARS
Public Safety
Police
Physical arrests' 2,807 2,564 - 4,000 4,550
Traffic violations" - - 2,4622,1262,427
Parlungviolations - - - 51,162 49,985
Fire
Number of calls answered 3,158 3,736 4,774 3,974 4,181
Inspections conducted 829 805 841 524 408
Sewer
Sewage system
Daily average treatment in gallons 10, 9,000 9,000 8,000 8
Maximum daily capacity of treatment
plant in gallons 15,000 15,000 15,000 15 15
Water systems
Daily average consumption in gallons 8,000 8,000 8,000 8,000 8
Maximum daily capacity of plant in
gallons 18,000 000 18,000 000 18,000 000 18,000 000 18
Refuse (Municipal Collection)
Tonnage 14,279 13,979 13,594 10,435 10,330
Sources: Various City Departments
1
Statistics not available for fiscal year 2002
2
Statistics begin in fiscal year 2002
3 Statistics begin in fiscal year 2003
Fiscal Year
2000 2001 2002 2003 2004
Fiscal Year
2005 2006 2007 2008 2009
4,795 4,790 5,078 5,090 6,325
2,171 2,111 1,986 6,881 8,801
51,004 46,575 42,530 40,741 36,457
4,300 4,176 4,454 4,699 4,480
1,135 409 360 624 443
8,500 000 8,500 000 8,000,000 10,310,000 7,981,000
13,500 000 13,500 000 13,500 000 13,500 000 21,131,000
7,720,000 7,360,000 7,647,685 5,793,309 7,845,000
18, 000, 000 18, 000, 000 18,000 000 17,000 000 18,000 000
10,428 10,573 10,807 11,798 10,774
TABLE 20
103
CITY OF DUBUQUE, IOWA
CAPITAL ASSET STATISTICS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Public safety
Police
Stations 1 1 1 1 1
Patrol units 18 18 18 18 18
Fire
Stations 6 6 6 6 6
Aerial trucks
Public works
Streets
Miles (1) * * * 273 290
Street lights (1) * 1.191 1.195 1.500 1.591
Health and social services
Hospital 2 2 2 2 2
Number of patient beds 478 478 478 584 560
Cultural and recreation
Library 1 1 1 1 1
Golf 1 1 1 1 1
Parks 38 38 39 42 42
Acreage 833 833 834 850 850
Recreation
Civic center 1 1 1 1 1
Swimming pools 2 2 2 2 2
Softball fields 7 7 7 7 7
Baseball fields 1 1 1 1 1
Tennis courts 20 20 20 20 20
Sewer
Sewage system
Miles of sanitary sewer (1) * * * * *
Miles of storm sewers (1) * * * * *
Number of treatment plants 1 1 1 1 1
Number of service connectors 20.550 20.550 20.200 20.800 21.000
Rater systems
Miles of water mains 301 302 305 305 310
Number of service connectors 21.130 21.000 20.550 21.032 21.206
Number of city owned fire hydrants 2.635 2.685 2.712 2.713 2.736
Sources: Various City Departments.
(1) City GIS System (* information not available).
Fiscal Year
2000 2001 2002 2003 2004
Fiscal Year
2005 2006 2007 2008 2009
1 1 1 1 1
19 19 19 19 19
6 6 6 6 6
3 3 3 3 3
290 295 307 317 320
1.631 1.755 1.802 1.855 1.877
2 2 2 2 2
421 421 405 405 405
1 1 1 1 1
1 1 1 1 1
44 44 47 47 47
855 845 898 898 898
1 1 1 1 1
2 2 2 2 2
7 7 8 7 7
1 1 1 1 1
20 19 19 20 20
* 263 286 290 295
* 116 120 122 143
1 1 1 1 1
21.000 21.443 21.568 21.633 21.347
312 313 315 316 317
21.016 21.257 21.210 21.243 21.347
2.770 2.780 2.798 2.812 2.831
TABLE 21
104
EideBailly.
CPAs & BUSINESS ADVISORS
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GO VER1VMEJVT'AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the accompanying financial statements of the governmental activities, the busmess -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remauung fund information of the City of Dubuque, Iowa, as of and for the year ended June 30, 2009,
which collectively comprise the City's basic financial statements listed in the table of contents, and have
issued our report thereon dated December 21, 2009 We conducted our audit m accordance with auditmg
standards generally accepted in the Umted States of Amenca and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the Umted
States
The financial statements of Dubuque Imtiatives and Subsidiaries, 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 Fmancial Reportmg
In planning and performing our audit, we considered the City's internal control over financial reportmg as
a basis for designing our auditing procedures for the purpose of expressing our opuuons on the financial
statements, but not for the purpose of expressmg our opuuon on the effectiveness of the City's mternal
control over financial reporting Accordingly, we do not express an opinion on the effectiveness of the
City's mternal control over financial reporting
Our consideration of internal control over financial reporting was for the lumted purpose descnbed m the
preceding paragraph and would not necessarily identify all deficiencies m the mternal control over
financial reportmg that might be sigmficant deficiencies or matenal weaknesses However, as discussed
below, we identified certain deficiencies m internal control over financial reporting that we consider to be
sigmficant deficiencies and matenal weaknesses
A control deficiency exists when the design or operation of the control does not allow management or
employees, m the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis A sigmficant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the City's ability to uutiate, authonze, record, process, or
report financial data reliably m accordance with accountmg pnnciples generally accepted m the Umted
States of Amenca such that there is more than a remote likelihood a nusstatement of the City's financial
statements that is more than mconsequential will not be prevented or detected by the City's mternal
control We consider the deficiencies m internal control descnbed m Part II of the accompanying
Schedule of Fmdings and Questioned Costs to be sigmficant deficiencies in internal control over financial
reportmg
PEOPLE. PRINCIPLES. POSSIBILITIES.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 1001 Dubuque, Iowa 52002-2273 1 Phone 563.556.17901 fax 563.557.78421 EOE
105
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood a material misstatement of the financial statements will not be prevented or
detected by the City's internal control.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in the internal control
that might be significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies
described above, we believe items II -A -09 and II -B -09 are material weaknesses.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, non - compliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of non - compliance or other matters that are required to be
reported under Government Auditing Standards. However, we noted certain immaterial instances of non-
compliance or other matters that are described in Part III 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, 2009, are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City. 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.
The City's responses to findings identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs. While we have expressed our conclusions on the City's responses, we did
not audit the City's responses, and accordingly, we express no opinion on them.
We noted certain matters that we reported to management of the City of Dubuque, Iowa, in a separate
letter dated December 21, 2009.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque,
Iowa, may report, including federal awarding agencies and pass- through entities. This report is not
intended to be and should not be used by anyone other than these specified parties.
We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City
of Dubuque, Iowa, during the course of our audit. Should you have any questions concerning any of the
above matters, we shall be pleased to discuss them with you at your convenience.
Dubuque, Iowa
December 21, 2009
ALT
106
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Compliance
EideBailly
CPAs & BUSINESS ADVISORS
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A -133
We have audited the compliance of the City of Dubuque, Iowa, with the types of compliance
requirements descnbed m the U S Office of Management and Budget (OMB) Circular A -133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
June 30, 2009 The City's major federal programs are identified m the summary of the mdependent
auditor's results section of the accompanymg Schedule of Findings and Questioned Costs Compliance
with the requirements of laws, regulations, contracts, and grant agreements applicable to each of its major
federal programs is the responsibility of the City's management Our responsibility is to express an
opuuon on the City's compliance based on our audit
We conducted our audit of compliance m accordance with auditing standards generally accepted m the
Umted States of Amenca, the standards applicable to financial audits contained m Government Auditing
Standards, issued by the Comptroller General of the Umted States, and OMB Circular A -133, Audits of
States, Local Governments, and Non - Profit Organizations Those standards and OMB Circular A -133
require that we plan and perform the audit to obtain reasonable assurance about whether non - compliance
with the types of compliance requirements referred to above that could have a direct and matenal effect
on a major federal program occurred An audit includes exanumng, on a test basis, evidence about the
City's compliance with those requirements and performing such other procedures as we considered
necessary m the circumstances We believe that our audit provides a reasonable basis for our opimon Our
audit does not provide a legal determination on the City's compliance with those requirements
In our opinion, the City of Dubuque, Iowa, complied, in all matenal respects, with the requirements
referred to above that are applicable to each of its major federal programs for the year ended June 30,
2009
Internal Control Over Compliance
The management of the City of Dubuque, Iowa, is responsible for establishing and maintamung effective
internal control over compliance with requirements of laws, regulations, contracts, and grant agreements
applicable to federal programs In planmng and performing our audit, we considered the City's mternal
control over compliance with requirements that could have a direct and matenal effect on a major federal
program in order to determine our auditing procedures for the purpose of expressmg our opinion on
compliance, but not for the purpose of expressmg an opinion on the effectiveness of internal control over
compliance Accordingly, we do not express an opuuon on the effectiveness of the City's mternal control
over compliance
PEOPLE. PRINCIPLES. POSSIBILITIES.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, Iowa 52002 -2273 1 Phone 563.556.1790 1 Fax 563.557.7842 1 EOE
107
A control deficiency in the City's internal control over compliance 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 non - compliance with a type of compliance requirement of a federal
program on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the City's ability to administer a federal program such that there is
more than a remote likelihood that non - compliance with a type of compliance requirement of a federal
program that is more than inconsequential will not be prevented or detected by the City's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material non - compliance with a type of compliance requirement of a
federal program will not be prevented or detected by the City's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque,
Iowa, may report, including federal awarding agencies and pass- through entities. This report is not
intended to be and should not be used by anyone other than these specified parties.
Dubuque, Iowa
December 21, 2009
/ &-e, ALT
108
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2009
Grantor / Program
Department of Commerce
Direct Program
Economic Development Support for
Planning Organizations
Department of Housing and Urban Development
Direct Program
Community Development Block Grants/
Entitlement Grants 14.218 B-06-1\ IC-19-0004 230,095
Community Development Block Grants/
Entitlement Grants 14.218 B- 07- nIC -19 -0004 1,715,191
Community Development Block Grants/
Entitlement Grants 14.218 B- 08- MC -19- 0004 283,946
Shelter Plus Care 14.238 IA26C601021 17,571
Pass - Through Program From
Iowa Department of Economic Development
HOME Investment Partnerships Program 14.239 06 -H\I- 198 -29 350,000
HOME Investment Partnerships Program 14.239 02 -H\I- 134 -20 187,500
Direct Program
Fair Housing Assistance Program
State and Local 14.401 FF207K087006 30,500
Lower Income Housing Assistance Program
Section 8 Moderate Rehabilitation 14.856 IA087NIR0005 41,126
Section 8 Housing Choice Vouchers 14.871 KC -9004V 4,092,035
Lead -Based Paint Hazard Control in
Privately -Owned Housing 14.900 IALHB0375 -07 751,980
Total Department of Housing and Urban
Development 7,699,944
Department of the Interior
Pass - Through Program from Iowa
Department of Natural Resources
Sportfishing and Boating Safety Act
Department of Justice
Pass - Through Program From
Iowa Department of Justice
Crime Victim Assistance Division
Violence Against Women Formula Grants
Direct Program
Bulletproof Vest Partnership Program
Bulletproof Vest Partnership Program
Bulletproof Vest Partnership Program
CFDA Agency or Program
Number Pass - through Number Expenditures
11.302
15.622
16.588
05- 87- 04598 $ 75,000
FY -07 -BIG 26,510
VW- 09 -24C 1,831
16.607 2006BUBX050 68
16.607 2007BUBX050 1,917
16.607 2008BUBX050 9,510
(continued)
109
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2009
Grantor / Program
Department of Justice (continued)
Pass - Through Program From
Dubuque County, Iowa, Sheriff
Public Safety Partnership and Community
Policing Grants 16.710
Helping Services for Northeast Iowa, Inc.
Enforcing Underage Drinking Laws Program 16.727
Enforcing Underage Drinking Laws Program 16.727
Direct Program
Edward Byrne Memorial Justice Assistance
Grant Program 16.738
Total Department of Justice
Department of Transportation
Direct Program
Airport Improvement Program
Airport Improvement Prograrm
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
Direct Program
Federal Transit - Formula Grants
Pass - Through Program From
Iowa Department of Transportation
Capital Assistance Program for Elderly
Persons and Persons with Disabilities
Direct Program
State and Community Highway Safety
Occupant Protection
Total Department of Transportation
Environmental Protection Agency
Pass - Through Program From
Iowa Finance Authority
Capitalization Grants for Clean Water
State Revolving Funds
Capitalization Grants for Clean Water
State Revolving Funds
Capitalization Grants for Clean Water
State Revolving Funds
CFDA Agency or Program
Number Pass - through Number Expenditures
20.106
20.106
20.205
20.205
20.205
20.205
20.205
20.507
20.513
20.600
20.602
66.458
66.458
66.458
08 JAG /C06 -A16 $
20- JD06 -F07
2007- AHFX0042
2006 -DJ -BX -0214
2,197
2,961
2,000
9,607
30,091
3- 19- 0028 -45 1,128,010
3- 19- 0028 -44 5,452
STP- U- 2100(634)- -
70 -31
STP -A- 946 -0(1)- -86 -31
ER -2100- (636)- -58 -31
2T- 00 -IA- 012 -002
EPD- 2100(638)- -7Y -31
IA -90 -X349
16 -X001- 210 -07
PAP 08 -03, TASK 06
PAP 09 -03, TASK 6
79,326
314,372
217
148,726
31,741
880,883
30,983
8,874
16,486
2 ,645,070
PD- CW -06 -39 51,345
PD- CW -09 -49 215,250
PD -C W -06 -39 180
(continued)
110
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2009
Grantor / Program
Environmental Protection Agency (continued)
Pass - Through Program From (continued)
Iowa Finance Authority (continued)
Capitalization Grants for Clean Water
State Revolving Funds 66.458 CS 192341 -01 $ 1,066
Capitalization Grants for Clean Water
State Revolving Funds 66.458 PD- CW -06 -41 5,128
Capitalization Grants for Drinking Water
State Revolving Funds 66.468 FS- 31- 08- DWSRF- 002 28,471
Total Environmental Protection Agency 301,440
Department of Health and Human Services
Pass - Through Program From
Dubuque County, Iowa Health Department
Public Health Emergency Preparedness
Public Health Emergency Preparedness
Childhood Lead Poisoning Prevention
Projects — State and Local Childhood
Lead Poisoning Prevention and
Surveillance of Blood Lead Levels in
Children
Corporation for National and Community Service
Pass - Through Program From
Iowa Commission on Volunteers
AmeriCorps
AmeriCorps
Department of Homeland Security
Pass - Through Program From
Iowa Department of Public Defense
Disaster Grants — Public Assistance
CFDA Agency or Program
Number Pass - through Number Expenditures
93.069
93.069
93.197
Total Department of Health and Human Services 25,723
94.006
94.006
3107 3,241
3109 10,362
5888LP05 12,120
08 -AC -13 137,319
07 -AF -13 39,762
Total Corporation for National and Community
Service 177,081
97.036 FENIA DR- 1763 -DR -IA 58,269
Total S 11.039.128
See notes to the Schedule of Expenditures of Federal Awards. 111
CITY OF DUBUQUE, IOWA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2009
NOTE 1— BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the
City of Dubuque, Iowa, and is presented on the accrual basis of accounting. The information on this
schedule is presented in accordance with the requirements of OMB Circular A -133, _4uthts of States,
Local Governments, and Non - Profit Orgam:atrons. Therefore, some amounts presented in this schedule
may differ from amounts presented in, or used in the preparation of, the basic financial statements.
NOTE 2 — SUBRECIPIENTS
Of the federal expenditures presented in the schedule, the City of Dubuque, Iowa, provided federal
awards to subrecipients as follows:
Federal Amount Provided
Program Title CFDA Number to Subrecipients
Community Development Block Grants/
Entitlement Grants
14.218 $ 128,360
112
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2009
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued Unqualified
Internal control over financial reporting:
Material weakness identified Yes
Significant deficiency Yes
Noncompliance material to financial statements noted No
Federal Awards
Internal control over major programs:
Material weakness identified No
Significant deficiency None reported
Type of auditor's report issued on compliance for major programs Unqualified
Any audit findings disclosed that are required to be reported in
accordance with Circular A -133, Section .510(a) No
Identification of major programs:
CFDA Number
14.218
14.239
14.900
20.106
20.507
66.458
Name of Federal Program or Cluster
Community Development Block Grants/
Entitlement Grants
HOME Investment Partnerships
Program
Lead -Based Paint Hazard Control in
Privately -Owned Housing
Airport Improvement Program
Federal Transit — Formula Grants
(Urbanized Area Formula Program)
Capitalization Grants for Clean Water
State Revolving Funds
Dollar threshold used to distinguish
between Type A and Type B programs $331,174
Auditee qualified as low -risk auditee
Part II: Findings Related to the Financial Statements:
SIGNIFICANT DEFICIENCIES /MATERIAL WEAKNESSES
II -A -09 Preparation of Financial Statements
No
Criteria — A properly designed system of internal control over financial reporting calls for the
preparation of an entity's financial statements and accompanying notes to the financial
statements by internal personnel of the entity.
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CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2009
Part II: Findings Related to the Financial Statements: (continued)
Condition — As auditors, we were requested to draft the financial statements and
accompanying notes to the financial statements. It is the responsibility of management and
those charged with governance to make the decision whether to accept the degree of risk
associated with this condition because of cost or other considerations.
Cause — We recognize that with a limited number of office employees, preparation of the
financial statements is difficult.
Effect — The effect of this condition is that the financial reporting is prepared by a party
outside of the entity. The outside party does not have the constant contact with ongoing
financial transactions that internal staff have.
Recommendation — We recommend that City officials continue reviewing operating
procedures in order to obtain the maximum internal control possible under the circumstances
to enable staff to draft the financial statements internally.
Response — The American Institute of Certified Public Accountants implemented new
auditing standards in 2007. There have been no changes in City procedures. A cost benefit
analysis reflects that the City continue with the current contractual agreement that the CPA
firm prepare our financial statements. The current five year audit contractual agreement
expires with year ending June 30, 2010, audit and City will review the issue prior to any new
agreement. The City implemented procedures to prepare adjusting journal entries.
Conclusion — Response accepted.
II -B -09 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 and the requirements of OMB Circular A -133,
Audits of States, Local Governments, and Non - Profit Orgam:ations.
Condition — During the course of our engagement, we proposed material audit adjustments to
the financial statements and Schedule of Expenditures of Federal Awards that would not have
been identified as a result of the City's existing internal controls and, therefore, could have
resulted in a material misstatement of the City's financial statements and Schedule of
Expenditures of Federal Awards.
Cause — There is a limited number of office employees with varying levels of experience with
the reporting requirements.
Effect — The effect of this condition was financial data not in accordance with generally
accepted accounting principles or the requirements of OMB Circular A -133, _- lvcits of States,
Local Governments, and Non - Profit Organi:atrons.
Recommendation — We recommend that finance staff continue to receive relevant training
and that management review all documentation completed by staff for use in preparing the
financial statements and Schedule of Expenditures of Federal Awards.
114
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2009
Part II: Findings Related to the Financial Statements: (continued)
Response — Finance staff will review audit findings with City Grant Committee during the
next quarterly meeting. Will implement procedures to improve information provided to
Finance including redesign of the grant checklist to capture grant limitations and /or
requirements, and to better communicate any specifications in the grant. Finance will
implement more review over financials including capital assets and depreciation, accounts
payable, and federal awards.
Conclusion — Response accepted.
Part III: Other Findings Related to Required Statutory Reportinn:
III -A -09 Certified Budget — Function disbursements during the year ended June 30, 2009, did not
exceed the amount budgeted.
III -B -09 Questionable Expenditures — No expenditures that may not meet the requirements of public
purpose as defined in an Attorney General's opinion dated April 25, 1979, were noted.
III -C -09 Travel Expense — No expenditures of City money for travel expenses of spouses of City
officials or employees were noted.
III -D -09 Business Transactions — Business transactions between the City and City officials or
employees are detailed as follows:
Name, Title, and
Business Connection
Transaction
Description
Amount
John Hefel, employee, spouse is owner of Services $ 1,494
A Frame of mind Framing & Gallery
Cheryl Pregler, employee, spouse is owner
of Pregler Photography
Stacie Scott, employee, spouse is owner
of Scott Elite Concrete
Tim Furlong, employee, owner of
Premier Entertainment Group
Services
Construction
Services
350
210
350
In accordance with Chapter 362.5(10) of the Code of Iowa, the transactions above do not
appear to represent conflicts of interest since total transactions with each individual were less
than $1,500 during the fiscal year.
III -E -09 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 insure the
coverage is adequate for current operations.
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CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2009
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
III -F -09 Council Minutes — No transactions were found that we believe should have been approved in
the Council minutes but were not.
The Council went into closed session on June 8, 2009. However, the minutes record did not
document the specific exemption for the closed session required by Chapter 21 of the Code of
Iowa, commonly known as the open - meetings law.
Recommendation — The City should comply with Chapter 21 of the Code of Iowa.
Response — An amended agenda listed the closed session under Pending Litigation — Chapter
21.5(1) of the Code of Iowa. The reason was accidentally omitted from the council minutes.
In the future the City will comply with the Code of Iowa requirements.
Conclusion — Response accepted.
III -G -09 Deposits and Investments — In fiscal year 2009, the City revised its investment policy to
include municipal bonds as an approved investment option. Subsequent to the revision, the
City invested in municipal bonds. However, municipal bonds are not allowed under Chapter
12C of the Code of Iowa.
Recommendation — The City should revise its investment policy to exclude municipal bonds
as an approved investment option. All municipal bonds held should be sold and reinvested in
accordance with Chapter 12C of the Code of Iowa.
Response — Finance informed the Investment Oversight Advisory Commission (IOAC) and
four investment managers that municipal bonds cannot be part of our investment portfolio
under Chapter 12C of the Code of Iowa and our Investment Policy will be amended. In
September 2009, all municipal bonds were sold and proceeds invested in accordance with
Chapter 12C. The City did not realize any loss from the sale of the municipal bonds held by
one manager.
Conclusion — Response accepted.
III -H -09 Revenue Bonds — No instances of non - compliance with the provisions of the City's revenue
bond resolutions were noted.
III -I -09 Solid Waste Fees Retainage — The Dubuque Metropolitan Area Solid Waste Agency, a
component unit of the City, used or retained the solid waste fees in accordance with Chapter
- 455B.310(2) of the Code of Iowa.
116