Submission of Fiscal Year Ended June 30, 2021 Annual Comprehensive Financial Report (ACFR) and Auditor's Communication with Those Charged with GovernanceCity of Dubuque
City Council Meeting
Action Items # 3.
Copyrighted
March 7, 2022
ITEM TITLE: Submission of Fiscal Year Ended June 30, 2021 Annual Comprehensive
Financial Report (ACFR) and Auditor's Communication with Those
Charged with Governance
SUMMARY: City Manager transmitting the Fiscal Year 2021 Annual Comprehensive
Financial Report (ACFR) and Auditor's Communication with Those
Charged with Governance Letter.
Assistant Finance Director Cassie Ross will make a presentation.
SUGGESTED Receive and File; PresentationSuggested Disposition:
DISPOSITION:
ATTACHMENTS:
Description Type
MVM Memo City Manager Memo
Staff Memo Staff Memo
FY21 Annual Comprehensive Financial Report (ACFR) Supporting Documentation
FY21 City AU-C 260 Communication Supporting Documentation
FY21 ACFR Presentation Supporting Documentation
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2021 Annual Comprehensive
Financial Report (ACFR) and Auditor's Communication with Those
Charged with Governance
DATE: February 28, 2022
Finance and Budget Director Jennifer Larson is transmitting the Fiscal Year 2021
Annual Comprehensive Financial Report (ACFR) and Auditor's Communication with
Those Charged with Governance Letter. This report was formerly known as the
Comprehensive Annual Financial Report. The City's independent auditor issued an
unmodified opinion on the financial statements.
Assistant Finance Director Cassie Ross will make a presentation and then Finance and
Budget Director Jennifer Larson and I are available, along with a representative of the
auditing firm Eide Bailey LLP, Partner Brian Unsen, to answer questions.
I respectfully recommend you receive and file the Fiscal Year 2021 annual audit.
Mic ael C. Van Milligen
MCVM:jl
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Director of Finance and Budget
Cassie Ross, Assistant Director of Finance
THE CITY OF
DUB r
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
Dubuque
All-AmericeClty
II 11" ►
2007 •2012 •2013
FROM: Jenny Larson, Director of Finance and Budget
SUBJECT: Submission of Fiscal Year Ended June 30, 2021 Annual Comprehensive
Financial Report (ACFR) and Auditor's Communication with Those
Charged with Governance
DATE: February 28, 2022
I' k I:W 111101lei Z
The purpose of this memorandum is to submit the Fiscal Year 2021 ACFR audited by
Eide Bailly, LLP, Auditor's Communication with Those Charged with Governance Letter
along with the City Finance staff's responses to auditor's findings. This report was
formerly known as the Comprehensive Annual Financial Report. The City's independent
auditor issued an unmodified opinion or "clean" opinion on the financial statements.
BACKGROUND
Iowa state code requires an annual audit by independent certified public accountants or
the State Auditor. In addition to meeting the requirements set forth in state statues, the
audit also was designed to meet the requirements of an annual single audit in
conformity with the provisions of Title 2 U.S. Code of Federal Regulations (CFR) Part
200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for
Federal Award (Uniform Guidance).
This Annual Comprehensive Financial Report is in conformance with the standards set
by Title 2 U.S. Code of Federal Regulations (CFR) Part 200. This federal regulation
mandates audit standards for federal programs.
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund and
fiduciary fund financial statements. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting.
Separate financial statements are required for Dubuque Metropolitan Area Solid Waste
Agency, Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors
Bureau (CVB) and have been received. The financial information for these entities is
included in the City of Dubuque ACFR.
AUDITOR'S COMMUNICATION with THOSE CHARGED with GOVERNANCE
Included is a separate letter from Eide Bailly, LLP. The letter contains audit information
required by auditing standards to be communicated to the Mayor and City Council.
ACTION STEP
It is recommended that the City Council receives and files the Fiscal Year 2021 reports
identified above and receives and files this communication and related enclosures.
Copies of the financial statements for the Dubuque Metropolitan Area Solid Waste
Agency are available in the Finance Department if desired by Council members.
Finance will make a brief presentation at the City Council meeting and Brian Unsen,
audit partner from Eide Bailly LLP, will be available for any questions.
JML
Enclosures: Fiscal Year 2021 ACFR
Auditor's Communication with Those Charged with Governance Letter
Auditor's Compliance letter
ANNUAL COMPREHENSIVE
INANCIAL
STATEMENT
.. -.:. � � �--L-fir
FA
DUBUQUE)
FISCAL YEAR ENDED JUNE 30, 2021
THE CITY OF
Dubuque
DUB E
Masterpiece on the Mississippi
2017.r2019
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2021
City of Dubuque, Iowa
Prepared by:
Department of Finance
THIS PAGE IS INTENTIONALLY LEFT BLANK
Introductory Section
June 30, 2021
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
Exhibit Pale
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-10
City Organizational Chart 11
Officials 12
Certificate of Achievement for Excellence in Financial Reporing 13
FINANCIAL SECTION
Independent Auditor's Report
17-19
Management's Discussion and Analysis
21-30
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position
1
32-33
Statement of Activities
2
34
Fund Financial Statements
Balance Sheet — Governmental Funds
3
36-37
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
3-1
39
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds
4
40-41
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities
4-1
43
Statement of Net Position — Proprietary Funds
5
44-47
Statement of Revenues, Expenses, and Changes in Fund Net Position
— Proprietary Funds
6
48-49
Statement of Cash Flows — Proprietary Funds
7
50-53
Statement of Fiduciary Net Position - Custodial Funds
8
54
Statement of Changes in Fiduciary Net Position - Custodial Funds
9
55
Notes to Financial Statements
57-115
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds
118
Note to Required Supplementary Information — Budgetary Reporting
119
Schedule of the City's Proportionate Share of Net Pension Liability — Iowa
Employees' Retirement System
120
Schedule of City's Contribution — Iowa Employees' Retirement System
121
Notes to Required Supplementary Information — Net Pension Liability IPERS
122
Schedule of the City's Proportionate Share of Net Pension Liability — Municipal
Fire and Police Retirement System of Iowa
123
Schedule of City's Contributions — Municipal Fire and Police Retirement System
of Iowa
124
Notes to Required Supplementary Information — Net Pension Liability MFPRSI
125
Schedule of Changed in Total OPEB Liability, Realted Ratios and Notes
126
Supplementary Information
Combining Fund Statements
Combining Balance Sheet — Nonmajor Governmental Funds
A-1
130-132
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds
A-2
134-136
Combining Statement of Net Position — Nonmajor Enterprise Funds
B-1
138
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position — Nonmajor Enterprise Funds
B-2
139
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
FINANCIAL SECTION (continued)
Exhibit
Page
Combining Statement of Cash Flows — Nonmajor Enterprise Funds
B-3
140-141
Combining Statement of Net Position — Internal Service Funds
C-1
144-145
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position (Deficit) — Internal Service Funds
C-2
146-147
Combining Statement of Cash Flows — Internal Service Funds
C-3
148-149
Combining Statement of Fiduciary Net Position - Custodial Funds
D-1
152
Combining Statement of Changes in Fiduciary Net Position - Custodial Funds
D-2
153
STATISTICAL SECTION (Unaudited)
Table
Page
Statistical Section Contents
157
Financial Trends
Net Position by Component
1
158-159
Changes in Net Position
2
160-163
Fund Balances of Governmental Funds
3
164-165
Changes in Fund Balances of Governmental Funds
4
166-167
Revenue Capacity
Taxable and Assessed Value of Property
5
168
Property Tax Rates — Direct and Overlapping Governments
6
169
Principal Property Taxpayers
7
170
Property Tax Levies and Collections
8
171
Debt Capacity
Ratios of Outstanding Debt by Type
9
172-173
Ratios of General Bonded Debt Outstanding
10
174
Direct and Overlapping Governmental Activities Debt
11
175
Legal Debt Margin Information
12
176-177
Revenue Debt Coverage
13
178
Water and Sewer Receipt History
14
179
Water Meters by Rate Class
15
180
Largest Water and Sewer Customers
16
181
Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining
17
182
Demographic and Economic Information
Demographic and Economic Statistics
18
183
Principal Employers
19
185
Operating Information
Full -Time Equivalent City Government Employees by
Function/Department
20
186-187
Operating Indicators by Function/Program
21
188-189
Capital Asset Statistics by Function
22
190-191
Retail
23
192
COMPLIANCE SECTION
Independent Auditor's Report on Internal Control over Financial Reporting and
on Compliance and other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government Auditing Standards 195-196
Independent Auditor's Report on Compliance with Requirements for Each Major
Program and on Internal Control Over Compliance Required by The Uniform Guidance 197-198
Schedule of Expenditures of Federal Awards 199-201
Notes to the Schedule of Expenditures of Federal Awards 202
Schedule of Findings and Questioned Costs 203-206
2
THE CITY OF
DUTBQTE
Masterpiece on the Mississippi
December 22, 2021
Finance Department
Dubuque 50 West IPStreet
Dubuque, Iowa 52001-4805
All-AmericaGlW Office (563) 589-4133
Fax (563) 690-6689
I I TTY (563) 690-6678
finance@cityofdubuque.org
2007-2012.2013 www.cityofdubuque.org
2017*2019
Honorable Mayor, City Council Members, and Citizens of the City of Dubuque:
The City of Dubuque, Iowa, pursuant to the requirements set forth by state and federal regulations, hereby
submits the Annual Comprehensive Financial Report (ACFR) for the fiscal year ended June 30, 2021.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. Understanding the cost of internal controls should not exceed
anticipated benefits, the objective is to provide reasonable, rather than absolute, assurance that the financial
statements are free of any material misstatements. To the best of our knowledge and belief, the enclosed
data is accurate in all material respects, and is reported in a manner designed to present fairly the financial
position and results of operations of the various funds and activities of the City. All disclosures necessary to
enable the reader to gain an understanding of the City's financial operations have been included.
The Code of Iowa requires an annual audit by independent certified public accountants or the State Auditor.
The accounting firm of Eide Bailly LLP conducted the audit for fiscal year 2021. In addition to meeting the
requirements set forth in state statutes, the audit also was designed to meet the requirements of an annual
single audit in conformity with the provisions of Title 2 U.S. Code of Federal Regulations Part 200,
Uniform Administrative Requirement, Cost Principals, and Audit Requirements for Federal Awards
(Uniform Guidance). Information related to this single audit, including the Schedule of Expenditures of
Federal Awards, findings, recommendations, and the auditor's report on internal control over financial
reporting and compliance with requirements applicable to laws, regulations, contracts, and grants, are
included in the Compliance Section of this report. The independent auditors' report is included in the
Financial Section of this report.
The City provides a full range of services including: police and fire protection; sanitation services; the
construction and maintenance of roads, streets, and infrastructure; inspection and licensing functions;
maintenance of grounds and buildings; regional airport; library; recreational activities; and cultural events.
In addition to general government activities, the municipality owns and operates enterprises for a water
system, water resource and recovery center (wastewater treatment), stormwater system, parking facilities,
refuse collection, road salt and public transportation.
This report includes all funds of the City of Dubuque, as well as its component units. Component units are
legally separate entities for which the City is financially accountable. This report includes the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives and Subsidiaries, and Dubuque
Convention and Visitors Bureau as discretely presented component units. A discretely presented
component unit is reported in a separate column in the government -wide financial statements to emphasize
that it is legally separate from the City of Dubuque and to differentiate its financial position and results of
operations from those of the City. The City appoints a voting majority to the DMASWA governing board
and operates the landfill. Dubuque Initiatives, Inc. is a sustainable, non-proft organization, working as a
community partner and catalyst, to undertake challenging projects involving job creation and/or community
3
revitalization that supports a viable, livable adn equitable community. In the event of dissolution, any assets
or property of the organization are transferred to the City. Dubuque Convention and Visitors Bureau's
purpose is to strengthen the Dubuque area economy by competitively marketing the area as a destination for
conventions, tour groups, sporting events, and individual travelers. The organization's board members
include one City Council member, the City of Dubuque Mayor, and the City Manager. In the event of
dissolution, any assets or property of the organization shall be transferred to the City. The City collects
hotel/motel taxes and forwards 50% to Dubuque Convention and Visitors Bureau as the primary source of
funds for its operations.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement the
MD&A and should be read in conjunction with it. The City of Dubuque's MD&A can be found
immediately following the independent auditor's report.
PROFILE OF THE CITY
The City of Dubuque, incorporated in 1833, is located on the Mississippi River in northeast Iowa, adjacent
to the states of Illinois and Wisconsin. Julien Dubuque, the city's namesake, first began mining lead in the
area now known as Dubuque in 1788. Dubuque is the oldest city in Iowa and has a unique combination of
the old and new, ranging from a historic downtown, numerous examples of Victorian architecture, and a
Civil War era shot tower, to expanding industrial parks, multiple retail centers, revitalized riverfront and
millwork districts and two casinos, one with a pari-mutuel dog track. The City of Dubuque has a stable,
diversified economic base and is a major tri-state retail center. The City currently has a land area of 31.6
square miles, and a census 2020 population of 59,667. As the largest city in the tri-state area, Dubuque
serves as the hub of a trade area with a population estimated at 250,000. As of October 2021, the City's
unemployment rate was 3.2%, below the state unemployment rate of 3.7% and the 4.6% national rate.
The City of Dubuque is empowered to levy a property tax on real property located within the city limits.
The City has operated under a council-manager form of government since 1920. Policymaking and
legislative authorities are vested in the governing council, which consists of a mayor and a six -member
council. The city council is elected on a non -partisan basis. The mayor is elected to a four-year term.
Council members are elected to four-year, staggered terms with three council members elected every two
years. Four of the council members are elected within their respective wards; the mayor and the two
remaining council members are elected at -large. The governing council is responsible, among other things,
for setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the city
manager, city attorney, and city clerk. The city manager is responsible for overseeing the day-to-day
operations of the government, making recommendations to the city council on the budget, and other matters,
appointing the heads of the government's departments, and hiring employees.
ECONOMIC CONDITION AND OUTLOOK
The economic condition and outlook of Dubuque continues to thrive. The City's economy has a diverse
employer base including manufacturing, technology, health services, insurance, education, and government.
The top 10 employers in the area employ less than 22% of the total workforce and cover five different
industries, which insulates the City against the negative impact from a downturn in any one area of the
economy. Several industry experts and associations have recognized the community's efforts to diversify its
economy. Although COVID-19 negatively impacted our national economy, as of July 2021 Dubuque
County has experienced the second highest percentage increase in the number of jobs from one year ago, a
4.6% increase. Local unemployment rates continue to be lower (7%) than statewide (8%) and national
(11.1%) figures.
4
Industrial
Dubuque Industrial Center West and South (DICW and DICS): Over 550 saleable acres were acquired in
1997, with an additional 163 acres purchased in 2015. The three areas of Dubuque Industrial Center
comprise 45 businesses with two of those businesses having arrived in 2019, along with two company
expansions. 2020 saw the arrival of one business, adding over 270 jobs, with additional business expansions
underway in 2021. The area continues to have available locations for further investment and job creation.
Dubuque Technology Park: Located on the south side of the City is a 100-acre park designed to
accommodate growing office businesses. Eight businesses are currently located in the park.
Commercial and Retail
Downtown Development: Over $800 million has been invested in the downtown area in building
rehabilitation, new construction, and public improvements where more than 9,000 people work. Heartland
Financial and Cottingham & Butler partnered in 2019 to purchase the Roshek Building in order to
accommodate their quickly expanding workforce. Their subsequent buildout provides office space on all
floors of the building to support hundreds of additional Heartland and Cottingham & Butler employees at
this location. The COVID-19 pandemic has changed business practices in relation to on -site employment,
but all floors of the facility are prepared for a full return to the office. This continued use of an iconic
historic building in Dubuque's downtown supports our local retail.
Historic Millwork District: The Historic Millwork District is saturated with history. It imbues the area with
authenticity and character while offering valuable lessons about the importance of sustainable urban design
strategies. Dubuque's Historic Millwork District is a keystone to the region's aggressive economic
development strategy. With one million square feet of historic warehouse space ideal for urban mixed -use
development, the District is perfectly suited to attract entrepreneurs, designers, residents, institutions, and
businesses prepared to fuel Dubuque's globally competitive and sustainable economy. The District is
currently home to multiple eateries, breweries, and shopping venues. To date, nearly $100 million has been
invested into the transformation of the Millwork District and it is attracting entrepreneurs, residents,
institutions, and businesses that are fueling Dubuque's competitive economy.
Dupaco completed a $30+ million project to renovate the Voices Building in 2021. The building is now
home to the credit union's operations center and will include a mix of retail, entertainment and community
space on the lower floors. This historic rehabilitation is yet another feather in the cap of local developers
and contractors as well as a great addition to a more vibrant district.
Brewery Neighborhood Conservation District: The former Dubuque Brewing and Malting Company
complex (aka H&W Building) is a collection of buildings constructed primarily of red brick between 1896
and 1934 on the northeast corner of Jackson and 30th Streets. The complex is eligible for the National
Register of Historic Places and is in Dubuque's Brewery Neighborhood Conservation District. The southern
portion of the building was purchased by 3000 Jackson LC in March 2017 and work to restore the building
began. The new owner obtained a demolition permit to deconstruct the unsound section of the structure and
plan to stabilize and make immediate repairs to prevent further deterioration. Although a portion of the
historic structure will be demolished, there are plans to repair, stabilize, and eventually completely restore
the property in the future. The property was rezoned in May 2020 to accommodate an anticipated $30
million mixed -use development providing commercial/retail and residential space.
Commercial Development: While COVID-19 slowed commercial construction season beginning in March
2020, building permit revenues still show a strong year for commercial remodels and new development.
JoAnn Fabric completed work on a new 30,000 square foot facility. The University of Dubuque constructed
5
a new student clinic, welcome center and outdoor space known as Wallace Commons. Hormel completed
renovations to add a new product line at their facility in the Industrial Park.
Phase I of Mt. Carmel campus for construction of a new senior housing development by BVM-PHS Senior
Housing, Inc. has been completed. Phase II is in plan review. When all four phases are completed, a total of
450 dwelling units will be available.
The Gardens of Dubuque, a 50-unit affordable workforce housing development, and Roosevelt West, a
40-unit affordable senior housing development, are under construction on Radford Road.
Health Services
ENT Medical Building completed construction of a new 9,000 sq. ft. medical facility along Cedar Cross
Road in the summer of 2019.
Mercy Medical Center along with Medical Associates Clinic has begun construction of a $25 million
project to build a two-story building east of the hospital to serve as a hematology/oncology outpatient clinic.
Iowa Health Facilities Council did grant their approval for a certificate of need for a linear acceletor
included in the project.
Grand River Medical Center has begun construction on 45,000 square foot, three-story, medical facility in
Westmark Business Park off of the Northwest Arterial and Pennsylvania Avenue.
Medical Associates Clinic is in the process of grading 5 1/2 acres located on the northwest corner of the
intersection of Chavenelle Road and the Northwest Arterial for a future medical clinic.
Education
The Dubuque community takes great pride in the quality of its educational system and it is a top priority for
Dubuque citizens and leaders. Dubuque's public -school system was ranked #7 out of 2,200 school districts
nationwide.
The Dubuque community schools district provides K-12 education through 11 elementary schools, three
junior high schools, one middle school, and three high schools. Dubuque also offers two private school
systems accredited by the State of Iowa. Holy Family Catholic Schools offers K-12 education at two
elementary schools, one K-5 Spanish Immersion Program, a middle school, and a high school. The
Dubuque Lutheran School offers K-5 education at one elementary school.
Dubuque boasts three private, liberal arts colleges offering a wide variety of undergraduate and graduate
degree programs, a community college with a diverse certificate and degree programs, and a Bible college.
The tri-state area features an additional state university and two more community colleges for a total of
18,000 college students. The University of Dubuque began the building permit process for a 17,000 square
foot Welcome Center addition and a new 4,000 square foot student clinic
Dubuque Hempstead completed and opened a 27,000 sq. ft. aquatic facility on the north side of the school.
A two-story addition is being added to the Alternative Learning Center.
The City's recent awards and recognition from a variety of sources include:
• The National Civic League named Dubuque a 2019 All -America City. This makes the fifth time in
twelve years Dubuque has received this award which recognizes communities whose citizens work
0
together to identify and tackle community -wide challenges and achieve uncommon results. Dubuque
received the 2019 award for the civic infrastructure built on the Inclusive Dubuque network of over
60 partners working to advance justice and social equity, and Imagine Dubuque 2017: A Call to
Action, the comphrensive planning process that collected input from 6,000 residents to identify a
roadmap for Dubuque's future. The application and presentation also featured three projects
demonstrating how partners are impacting health outcomes for all residents. "Health Care for All"
highlights the progress Crescent Community Health Center has made, the impact of the Pacific
Islander Health Project, and the recent work of the Brain Health Task Force. The Bee Branch Creek
Restoration Project was the second project highlighted and the collaborative work happening by the
Dubuque Easts Well coalition to increase access to healthy local foods is the third.
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the mayor and city council,
has been involved in a variety of projects throughout the year. These projects reflect the City's commitment
to continue to provide high quality services to the residents and stakeholders of Dubuque within the budget
guidelines set by the mayor and city council.
Creating an Equitable Community for All: Several City Council policy agenda priorities in the past year
focused on creating a more equitable community for all. Notably, Council prioritized implementation of the
Equitable Poverty Reduction and Prevention Plan and Equitable Fine and Fee Reform.
In 2021, the City Council prioritized the creation of an Equitable Poverty Reduction and Prevention Plan.
The Plan was delivered to Council by Public Works LLC, and lays out an implementation strategy to reduce
poverty, especially in communities of color. The FY22 budget recommended funding for Public Works
LLC to continue assisting the City in implementation. It also recommends the creation of a new Office of
Shared Prosperity and Neighborhood Support.
The Equitable Fine and Fee Reform prioity examines how the City's fines and fee structures impact our
most vulnerable population, particularly communities of color. Key issues include a thorough analysis of
quantitative and qualitative data to understand impact, legislative advocacy at the county, state, and federal
level, and actions to restructure fine and fee schedules and practices. Staff capacity to manage
recommended programs will be key to successful implementation.
Bee Branch Watershed Flood Mitigation Project: The City's $237 million Bee Branch Watershed Flood
Mitigation Project is a 20-year, multi -phased investment to mitigate flooding, improve water quality,
stimulate investment, and enhance quality of life within the Bee Branch Watershed. The City has received
more than $160 million in state and federal funds for the project. The $60 million Upper Bee Branch Creek
Restoration phase of the project was completed in the summer of 2017. The $25.9 million Bee Branch
Creek Railroad Culverts Project was awarded in early 2019 and construction is underway. When complete
in the fall of 2021, the improvements will increase the level of flood protection for over 1,300 homes and
businesses from a 1 in 75- year rain event to a 1 in 500 - year rain event.
In 2016, the City of Dubuque was awarded a total of $31.5 million through the U.S. Department of Housing
& Urban Development (HUD) National Disaster Resilience Competition (NDRC) Grant awarded to the
State of Iowa's "Iowa Watershed Approach." This total includes $8.4 million for the Bee Branch Healthy
Homes Resiliency Program in the form of five-year forgivable loans to improve 320 housing units, including
owner -occupied homes; single -unit rentals; and small, multi -family residential units. The grant also
provided $24.9 million for stormwater infrastructure improvements related to the Bee Branch Watershed
Flood Mitigation Project. Specifically, this includes funding towards the $25.9 million Bee Branch Creek
Railroad Culverts Project that involves the installation of six 8-foot diameter culverts to pass floodwaters
7
from the Upper Bee Branch to the Lower Bee Branch through the railway yard on Garfield Avenue. The
grant also provided funding for the project to provide drainage improvements from the Bee Branch Creek to
the west along 22nd Street up Kaufmann Avenue to North Main Street. Finally, the grant provided funding
for the project to provide drainage improvements from the Bee Branch Creek to the west along 17th Street
from Elm Street to Heeb Street. The HUD Resiliency Grant will expedite the completion of the Bee Branch
Watershed Flood Mitigation Project, lessening the potential flood damage caused by future flash floods.
Another phase of the Bee Branch project is the $17.1 million Bee Branch Gate & Pump Replacement
Project. Improvements will modernize the gate and pump station where the Bee Branch Watershed drains
into the Mississippi. The improvements to the pump station will provide more pumping capacity and allow
for gravity flow under some circumstances such that it will be able to accommodate what is statistically
considered a 500-year event - the same level of protection to be provided by the upstream Bee Branch Creek
Restoration Project when the last component (the Bee Branch Creek Railroad Culverts Project) is complete.
The engineering design plans are under review by the US Army Corps of Engineers. The City was awarded
a $2.5 million U. S. Economic Development Administration (EDA) grant. However, since being awarded
the grant, the estimated project cost increased by $6 million, due in part to site challenges. The project will
be ready for bidding in late 2021. Unfortunately, the economic impact of the COVID-19 pandemic did delay
the project.
Chaplain Schmitt Island Master Plan: As part of a commitment to create a variety of fun things to do for
all, the City is part of a team lead by the Dubuque Racing Association who is implementing the Chaplain
Schmitt Island Master Plan. The Plan identifies a strategy to redevelop the island, beginning with the
additional enhancements to the Veterans Memorial Plaza and including developing/redeveloping
recreational amenities, business development, self-sufficiency of the Q Casino, and redevelopment of the
16th Street Corridor onto the island. This work will be done while focusing on the environmental integrity
of the island with the US Army Corps of Engineers and the Iowa Department of Natural Resources.
For the Future. The mayor and city council will continue to take action to achieve their goals of
maintaining a strong local economy, sustaining stable property tax levies, and enhancing the safety and
security of residents through neighborhood vitality. City staff will work to implement the city council's
vision for Dubuque. A program of comprehensive service reviews has continued as a vehicle for analyzing
City services, identifying opportunities for improvement, and determining areas of possible cost reductions.
The goal of the service review program is to ensure that services desired by the citizens are provided in the
most cost effective and efficient method possible. The city council's goals for the next five years and
beyond include the following:
• Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity
• Vibrant Community: Healthy and Safe
• Livable Neighborhoods and Housing: Great Place to Live
• Financially Responsible, High -Performance City Organization: Sustainable, Equitable, and
Effective Service Delivery
• Sustainable Environment: Preserving and Enhancing Natural Resources
• Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and Equitable
• Diverse Arts, Culture, Parks, and Recreation Experiences and Activities
• Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility
FINANCIAL INFORMATION
Internal Controls: City management is responsible for establishing and maintaining internal controls to
ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that
adequate accounting data is compiled to allow for the preparation of financial statements in conformity with
0
generally accepted accounting principles.
Single Audit: As a recipient of federal and state financial assistance, the City of Dubuque's government is
responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable
laws, regulations, contracts, and grants related to those programs. These internal controls are subject to
periodic evaluation by management.
As a part of the City's single audit described earlier, tests are made to determine the adequacy of internal
controls, including that portion related to federal programs, as well as to determine that the government has
complied with applicable laws, regulations, contracts, and grants.
Budgeting Controls: In addition, the government maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated
budget approved by the city council. All funds, except for fiduciary fund types which include pension trust
funds, private purpose trust funds, and custodial funds are included in the annual budget process. The level
of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated amount)
is established by state programs. The government also maintains an encumbrance accounting system as one
technique for accomplishing budgetary control. Encumbered amounts lapse at year-end; however,
encumbrances generally are re -appropriated as part of the following year's budget. As demonstrated by the
statements and schedules included in the financial section of this report, the City continues to meet its
responsibility for sound financial management.
Cash Management: Cash temporarily idle during the year was invested in demand deposits, certificates of
deposit, federal agency obligations, and authorized mutual funds. The City (including DMASWA) received
investment earnings of $340,627 for the year. The investment policy adopted by the city council stresses the
importance of capital preservation. The policy directives intend to minimize credit and market risks while
maintaining a competitive yield on the portfolio.
Risk Management: The City of Dubuque is a member of a statewide risk pool for local governments, the
Iowa Communities Assurance Pool (ICAP). The coverage for general and auto liability, as well as public
official and police professional liability are acquired through this pool. The City has established a Workers'
Compensation Reserve Fund for insuring benefits provided to City employees which is included in the
Internal Service Fund Type. Through May 15, 2020 workers' compensation benefits were self -insured up to
a specific stop -loss amount of $750,000, and an aggregate -stop loss consistent with statutory limits for 2020.
Coverage from a private insurance company is maintained for losses in excess of the stop -loss amount. As
of May 15, 2020 the City changed workers' compensation coverage providers. Under this new agreement,
the City is fully insured for all claims with the exception of sworn Police Officers and Fire Fighters
medical claims. All claims handling procedures are performed by a third -party claims administrator.
Incurred but not reported claims have been accrued as a liability based upon the claims administrator's
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense. The City
purchases private insurance to include sworn Police Officers and Fire Fighters medical claims under a self -
insured retention of $750,000 for each accident.The accumulated reserve provision for such claims reflected
a $(134,415) net position as of June 30, 2021. 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 $3,917,734 as of June 30, 2021. All self -insured health plans are certified as actuarially sound and
certificates of compliance have been filed with the State of Iowa.
Bond Rating: Moody's Investors Service affirmed the Aa3 rating on outstanding general obligation
unlimited tax (GOULT) debt on April 26, 2021; a Aa3 rating on outstanding second lien sales tax increment
debt that is ultimately backed by an unlimited property tax pledge; and an A2 rating on outstanding senior
0
lien sales tax increment revenue bonds. The ratings incorporate the city's sizable tax base, a walth and
income profile that is slightly below similary rated peers, an increased financial position that will remain
solid despite a draw in fiscal 2021, and somewhat elevated debt and pension liabilities. On July 13, 2021,
Moody's upgraded the rating on the water revenue debt from A2 to Al. The Al rating reflects the water
enterprise's very strong cash position, updated system condition, and strong capital and operational planning
with unlimited rate setting authority.
Moody's provides credit ratings and research covering debt instruments and securities. The purpose of
Moody's ratings is to provide investors with a simple system to gauge future relative creditworthiness of
securities. The firm uses nine rating classifications to designate least credit risk to greatest credit risk: Aaa,
Aa, A, Baa, Ba, B, Caa, Ca, and C. Moody's appends numerical modifiers 1, 2, and 3 to each rating
classification.
AWARDS AND ACKNOWLEDGEMENTS
Awards: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Dubuque, Iowa, for its
Comprehensive Annual Financial Report for the fiscal year ended June 30, 2020. This was the 33rd
consecutive year that the City has achieved this prestigious award. In order to be awarded a Certificate of
Achievement, a government unit must publish an easily readable and efficiently organized comprehensive
annual financial report. This report must satisfy both generally accepted accounting principles and
applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current annual
comprehensive financial report continues to meet the Certificate of Achievement program requirements,
and we are submitting it to the GFOA to determine its eligibility for another certificate.
GFOA also awarded a Distinguished Budget Presentation Award to the City of Dubuque, Iowa, for its
annual budget for the fiscal year ended June 30, 2022. 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 16th consecutive year that the City has
achieved this prestigious award. This award is valid for a period of one year.
The City of Dubuque's investment policy was awarded the Certification of Excellence in July 2009 by the
Association of Public Treasurers of the United States and Canada. The investment policy is reviewed every
five years by the APT US&C. The investment policy was successfully recertified in 2016.
Acknowledgments: The preparation of this report could not be accomplished without the efficient and
dedicated services of the entire Finance Department staff. We also thank the mayor and city council for
their interest and support in planning and conducting the financial operations of the City of Dubuque in a
responsible and progressive manner. We also thank the independent certified public accountants, Eide
Bailly LLP, whose competent assistance and technical expertise have enabled the production of this report.
Sincerely,
Michael C. Van Milligen
City Manager
Jennifer M. Larson
Director of Finance and Budget
10
Citizens of Dubuque
City Attorney City Council - City Clerk
Library _ Airport
Management/Legislative City Manager Sustainability
Economic Emergency
Development Communications
Arts & Cultural
Affairs
Engineering Equity &Human Rights
Facilities
Management
Finance &
Fire
Budget VA
Ambulance
Services
Housing &
Health Services
Community
Development Code
Enforcement
Human
Information
Resource
Services
L
Planning
Services
Services
Recreation
Parks
Civic Center
rCenter
Pol'
Public
Information — — — — --
i Geographic
Multicultural
Information
Family Center
Systems
Shared Prosperity
Public Works
& Neighborhood
Support
Transportation
Water
Services
Parking
Transit
Water &
Resource
Recovery Center
Emergency
Management
KEY
Elected by the Appointed by the Appointed by the Appointed by the Appointed by the
Citizens of Dubuque City Council Library Board of Airport Commission City Manager
Trustees 11
CM004-110121
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2021
CITY COUNCIL
Roy D. Buol
Ric W. Jones
David T. Resnick
Susan R. Farber
Laura J. Roussell
Danny C. Sprank
Bradley M. Cavanagh
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M. Brumwell
Maureen A. Quann
Adrienne N. Breitfelder
DEPARTMENT MANAGERS
Todd E. Dalsing
Cori L. Burbach
Gus N. Psihoyos
Jennifer M. Larson
Therese H. Goodmann
Jill M. Connors
Mark P. Murphy
Rick A. Steins
Mary Rose Corrigan
Alexis M. Steger
Shelley M. Stickfort
Kelly R. Larson
Christine A. Kohlmann
Marie L. Ware
Nicholas L. Rossman
Randy W. Gehl
John L. Klostermann
Wally C. Wernimont
Mark M. Dalsing
Gina S. Bell
Russell K. Stecklein
Christopher J. Lester
William J. O'Brien
Mayor
Council Member
— At Large
Council Member
— At Large
Council Member
— 1 st Ward
Council Member
— 2nd Ward
Council Member
— 3rd Ward
Council Member
— 4th Ward
City Manager
Senior Counsel
City Attorney
Assistant City Attorney
City Clerk
Airport Manager
Assistant City Manager
City Engineer
Director of Finance and Budget
Director of Strategic Partnerships
Economic Development Director
Emergency Communications Manager
Fire Chief
Health Services Manager
Housing and Community Development Manager
Human Resources Director
Human Rights Director
Information Services Manager
Leisure Services Manager
Library Director
Public Information Officer
Public Works Director
Planning Services Manager
Police Chief
Sustainable Community Coodinator
Transportation Services Director
Water Department Manager
Water & Resource Recovery Center Manager
12
Government Finance Officers Association
Certificate of
Achievement
for Exectlence
in Financial
Reporting
Presented tD
City of Dubuque
Iowa
For its Annual Compreheusive
Financial Report
For the Fiscal Year Ended
June 30, 2020
Exemfive DirectorJC'EO
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14
Financial Section
June 30, 2021
City of Dubuque, Iowa
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EideBailly.
CPAs & BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -
type activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa as of and for the year ended June 30, 2021 and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of Dubuque Initiatives and Subsidiaries, which represent 28 percent, 38
percent, and 7 percent, of the assets, net position, and revenues of the aggregate discretely presented
component units. Those statements were audited by other auditors whose report has been furnished to
us, and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives and
Subsidiaries, is based on the report of the other auditors. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government Auditing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perform the audit to obtain reasonable
assurance about whether the financial statements are free from material misstatement. The financial
statements of Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau,
discretely presented component units, were not audited in accordance with Government Auditing
Standards.
What inspires you, inspires us. I eidebailly.com
17
1545 Associates Dr., Ste. 101 ' Dubuque, IA 52002-2299 I T 563.556.1790 I F 563.557.7842 EOE
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or
error. In making those risk assessments, the auditor considers internal control relevant to the entity's
preparation and fair presentation of the financial statements in order to design audit procedures that
are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the entity's internal control. Accordingly, we express no such opinion. An audit also
includes evaluating the appropriateness of accounting policies used and the reasonableness of
significant accounting estimates made by management, as well as evaluating the overall presentation of
the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, based on our audit report and the report of other auditors, the financial statements
referred to above present fairly, in all material respects, the respective financial position of the
governmental activities, the business -type activities, the aggregate discretely presented component
units, each major fund, and the aggregate remaining fund information of the City of Dubuque, Iowa, as
of June 30, 2021, and the respective changes in financial position and, where applicable, cash flows
thereof for the year then ended in accordance with accounting principles generally accepted in the
United States of America.
Change in Accounting Principle
As discussed in Notes 1 and 18 to the financial statements, the City has adopted the provisions of GASB
Statement No. 84, Fiduciary Activities, which has resulted in a restatement of net position as of July 1,
2020. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and the other required supplementary information listed in the table of contents
be presented to supplement the basic financial statements. Such information, although not a part of the
basic financial statements, is required by the Governmental Accounting Standards Board, who considers
it to be an essential part of financial reporting for placing the basic financial statements in an
appropriate operational, economic, or historical context. We have applied certain limited procedures to
the required supplementary information in accordance with auditing standards generally accepted in
the United States of America, which consisted of inquires of management about the methods or
preparing the information and comparing the information for consistency with management's responses
to our inquires, the basic financial statements, and other knowledge we obtained during our audit of the
basic financial statements. We do not express an opinion or provide any assurance on the information
because the limited procedures do not provide us with sufficient evidence to express an opinion or
provide any assurance.
18
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that
collectively comprise the City of Dubuque, Iowa's financial statements. The introductory section,
combining nonmajor fund financial statements, and statistical section are presented for purposes of
additional analysis and are not a required part of the financial statements. The accompanying schedule
of expenditures of federal awards is presented for purposes of additional analysis as required by the
audit requirements of Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards (Uniform Guidance), and is
also not a required part of the financial statements.
The combining nonmajor fund financial statements and the schedule of expenditures of federal awards
are the responsibility of management and were derived from and relate directly to the underlying
accounting and other records used to prepare the basic financial statements. Such information has been
subjected to the auditing procedures applied in the audit of the basic financial statements and certain
additional procedures, including comparing and reconciling such information directly to the underlying
accounting and other records used to prepare the basic financial statements or to the basic financial
statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the combining nonmajor fund
financial statements and the schedule of expenditures of federal awards are fairly stated, in all material
respects, in relation to the basic financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in
the audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated December 22,
2021, on our consideration of the City of Dubuque, Iowa's internal control over financial reporting and
on our tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements,
and other matters. The purpose of that report is solely to describe the scope of our testing of internal
control over financial reporting and compliance and the results of that testing, and not to provide an
opinion on the effectiveness of the City's internal control over financial reporting or on compliance. That
report is an integral part of an audit performed in accordance with Government Auditing Standards in
considering the City's internal control over financial reporting and compliance.
Dubuque, Iowa
December 22, 2021
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20
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
This section of the City of Dubuque's annual financial report presents our discussion and analysis of the
City's financial performance during the fiscal year that ended on June 30, 2021. Please read it in
conjunction with the transmittal letter at the front of this report and the City's financial statements found
in the next section of this report.
FINANCIAL HIGHLIGHTS
The net position of the City of Dubuque increased to $629,117,651 compared to net position of
$590,242,775 for fiscal year 2020.
Governmental program revenues increased by $10,211,394 from fiscal year 2020. This increase
was due largely in part to a significant increase in grant revenues in community and economic
development in relation to the HUD Resiliency grant. There was also increased grant revenue
related to the completion and closeout of the Southwest Arterial project.
The City's business type activities program revenues increased $7,338,589. Charges for services
increased $131,215. There were no rate increases for water, sewer, or stormwater , and refuse
(403%) rates were decreased in fiscal year 2021. The Stormwater Fund had a $5,951,737 State
of Iowa Flood Mitigation grant (Sales Tax Increment) for the Bee Branch Creek Restoration
project. There were no capital contributions from outside developers for completed subdivisions.
Capital contributions received from governmental funds were $7,429,184 and are shown in the
transfers line and are detailed out in Note 5.
Program expenses of the City's governmental activites decreased approximately 2.2%, or
$2,233,507 from fiscal year 2020 to fiscal year 2021. The decrease was seen mainly in public
works, culture and recreation, and general government, which is due to frozen positions for part
of the year so a decrease in employee expenditures.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements consist of government -wide financial statements, fund financial
statements, and notes to the financial statements. This discussion and analysis is intended to serve as an
introduction to the basic financial statements. This report also contains other supplementary information
in addition to the basic financial statements themselves.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private -sector business. The paragraphs below provide a brief
description of the government -wide financial statements.
The statement of net position presents information on all of the City's assets, deferred outflows,
liabilities, and deferred inflows, with the difference between assets plus deferred outflows, and liabilities
plus deferred inflows reported as net position. Over time, increases or decreases in net position may serve
as a useful indicator of whether the financial position of the City is improving or deteriorating. To assess
the overall health of the City, you need to consider additional non -financial factors such as changes in the
City's property tax base and the condition of the City's infrastructure.
21
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
The statement of activities presents information showing how the City's net position changed during the
most recent fiscal year. All changes in net position are reported as soon as the underlying event giving
rise to the change occurs, regardless of the timing of related cash flows. Thus, revenues and expenses are
reported in this statement for some items that will result in cash flows in future fiscal periods such as
uncollected taxes and earned but unused sick and vacation leave.
The government -wide financial statements include not only the City itself (known as the primary
government), but also three other legally separate entities (known as component units), the Dubuque
Metropolitan Area Solid Waste Agency (DMASWA), Dubuque Initiatives (DI) and Subsidiaries, and the
Dubuque Convention and Visitors Bureau (CVB) for which the City of Dubuque is considered
financially accountable. Financial information for DMASWA, DI, and CVB are reported separately from
the financial information presented for the primary government. The Dubuque Metropolitan Area Solid
Waste Agency, Dubuque Initiatives and Subsidiaries, and Dubuque Convention and Visitors Bureau
issue separate financial statements. Dubuque Initiatives and Subsidiaries' financial statements are
prepared on a calendar year basis while the Dubuque Metropolitan Area Solid Waste Agency's and
Dubuque Convention and Visitors Bureau's financial statements are prepared on the same fiscal year
basis as the City of Dubuque.
The government -wide financial statements are divided into two categories:
Governmental activities. This category consists of services provided by the City that are principally
supported by taxes and intergovernmental revenues. Basic City services such as police, fire, public
works, planning, parks, library, and general administration are governmental activities.
Business -type activities. These activities are supported primarily by user fees. The services provided by
the City in this category include water, sewer, storm water, refuse, salt, parking, transit and the America's
River Project.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate
compliance with legal requirements for financial transactions and reporting. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government -wide financial statements. However, unlike the
government -wide financial statements, governmental fund financial statements focus on near -term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near -term
financial requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near -term financial decisions. Both
the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and
changes in fund balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
22
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
The City maintains four individual major governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund, tax increment financing fund, community development
fund and debt service fund, all of which are considered to be major funds. Data from all other
governmental funds are combined into a single, aggregated presentation. Individual fund data for each of
these nonmajor governmental funds is provided in the form of combining statements elsewhere in this
report.
The City legally adopts an annual budget by function. A budgetary comparison schedule has been
provided.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business -type activities in the government -wide financial
statements. The City uses enterprises funds to account for its sewer, water, storm water, and refuse
utilities, transit service, parking facilities, salt, and America's River Project. Internal service funds are
accounting devices used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its engineering services, garage services,
stores/printing, health insurance, and workers' compensation. The City's internal service funds
predominately benefit the governmental activities and have been included in the governmental activities
in the government -wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government -wide financial statements
because the resources of those funds are not available to support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City has two
fiduciary funds, a custoidal fund reporting resources held for the Dubuque Racing Association for
improvements at the greyhound racing facility and a custoidal fund used for reporting resources from
Mediacom for purchasing equipment relevant to public, educational, and governmental (PEG) access
broadcasting.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Required supplementary information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning the budget and
actual results of the City, the City's proportionate share of the net pension liability and related
contributions for both of the City's pension plans, and the schedule of changes in total OPEB liability.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor enterprise funds, internal service funds, and custoidal funds, are presented
immediately following the required supplementary information.
23
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net position. As noted earlier, net position may serve as a useful indicator of a government's financial
position when observed over time. The analysis that follows focuses on the change in net position for the
governmental and business -type activities.
The largest part of the City's net position reflects its net investment in capital assets such as land,
buildings, infrastructure, machinery, and equipment less any related debt used to acquire those assets that
is still outstanding. The debt related to the investment in capital assets is liquidated with resources other
than capital assets. Restricted net position represents resources subject to external restrictions,
constitutional provisions or enabling legislation on how they can be used. Unrestricted net position is the
part of net position that can be used to finance day-to-day operations without constraints established by
debt covenants, legislation, or other legal requirements.
CITY OF DUBUQUE'S NET POSITION
Governmental Activities
Business -type
Activities
Total
2021
2020
2021
2020
2021
2020
Current and other assets
$ 141,183,538
$ 106,111,268
$ 50,637,097
$ 44,069,688
$ 191,820,635
$ 150,180,956
Capital assets
416,838,707
419,863,419
379,026,143
368,493,789
795,864,850
788,357,208
Total assets
558,022,245
525,974,687
429,663,240
412,563,477
987,685,485
938,538,164
Deferred outflows of resources
15,610,050
11,802,331
1,285,787
1,223,366
16,895,837
13,025,697
Long-term liabilities
125,830,851
114,917,444
179,327,896
184,282,392
305,158,747
299,199,836
Other liabilities
27,787,317
14,164,454
13,622,200
16,131,621
41,409,517
30,296,075
Total liabilities
153,618,168
129,081,898
192,950,096
200,414,013
346,568,264
329,495,911
Deferred inflows of resources
28,490,373
30,834,711
405,034
990,464
28,895,407
31,825,175
Net position:
Net investment in capital assets
387,768,367
387,344,725
207,159,931
191,757,112
594,928,298
579,101,837
Restricted
34,083,157
26,501,434
2,942,894
3,187,364
37,026,051
29,688,798
Unrestricted
(30,327,770)
(35,985,750)
27,491,072
17,437,890
(2,836,698)
(18,547,860)
Total net position
$ 391,523,754
$ 377,860,409
$ 237,593,897
$ 212,382,366
$ 629,117,651
$ 590,242,775
Net position of the governmental activities increased $13,663,345 over fiscal year 2020 balance
of $377,860,409. Governmental activities had $4,020,837 of capital assets donated from
developers. Overall grant revenues increased by $6,768,447. This was primarily due to the
public works grant for the HUD Resiliency grant and grant revenue received related to the completion
of the Southwest Arterial project closeout and completion.
24
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
Net position for the business -type activities increased $25,211,531 over fiscal year 2020 of
$212,382,366. Charges for services increased $131,215. Grants decreased $(7,207,374). The increase in
net position is also due to transfers of capital assets from governmental funds of $7,429,184 and loan
forgiveness for $5,908,200.
A portion of the City's net position $37,026,051 or 5.9% represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal year 2021, the City has negative total unrestricted net position. The
government -wide negative unrestricted results from TIF (governmental activities) debt being used to
finance capital assets of the business -type activities, along with $60,799,359 in pension liability and
$6,311,802 in OPEB Liability.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$39,524,078 in 2021. Other governmental revenues included gaming $8,077,003, local option sales taxes
$11,328,295, and charges for services $20,510,357.
Governmental operating expenses during 2021 totaled $97,367,539. The largest programs were public
safety of $32,583,676, public works of $20,949,455, community and economic development of
$18,168,279, and culture and recreation of $11,341,436.
Business -type activities. Operating revenue increased $90,452. Operating expenses increased from
$33,312,066 in 2020 to $33,785,256 in 2021. The increase was primarily in supplies and services
expense. Nonoperating expenses consist of interest expense of $4,545,376. Investment earnings
decreased from $796,494 in 2020 to $130,706 in 2021.
25
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Governmental Activities
Business -type
Activities
Total
2021
2020
2021
2020
2021
2020
Revenues:
Program revenues
Charges for services
$ 20,510,357
$ 17,067,410
$ 34,582,412
$ 34,451,197
$ 55,092,769
$ 51,518,607
Operating grants and contributions
24,436,818
14,484,320
9,894,477
2,967,619
34,331,295
17,451,939
Capital grants and contributions
12,266,220
15,450,271
6,691,110
6,410,594
18,957,330
21,860,865
General revenues
Property taxes
39,524,078
38,354,691
-
-
39,524,078
38,354,691
Local option sales tax
11,328,295
9,652,332
11,328,295
9,652,332
Hotellmotel tax
2,036,045
2,117,506
2,036,045
2,117,506
Utility franchise fees
4,920,610
4,976,472
4,920,610
4,976,472
Gaming
8,077,003
7,394,294
8,077,003
7,394,294
Unrestricted investment earnings
142,102
1,857,420
130,706
796,494
272,808
2,653,914
Gain on sale of capital assets
296,969
23,866
-
16,500
296,969
40,366
Total revenues
123,538,497
111,378,582
51,298,705
44,642,404
174,837,202
156,020,986
Expenses:
Public safety
32,583,676
32,079,903
-
-
32,583,676
32,079,903
Public works
20,949,455
22,667,132
20,949,455
22,667,132
Health and social services
1,487,042
1,677,181
1,487,042
1,677,181
Culture and recreation
11,341,436
13,576,571
11,341,436
13,576,571
Community and economic
development
18,168,279
17,848,570
18,168,279
17,848,570
General government
10,046,004
8,821,692
10,046,004
8,821,692
Interest on long-term debt
2,791,647
2,929,997
2,791,647
2,929,997
Sewage disposal works
-
-
12,277,013
11,725,889
12,277,013
11,725,889
Water utility
7,968,029
7,631,411
7,968,029
7,631,411
Stormwater utility
6,164,947
5,887,171
6,164,947
5,887,171
Parking facilities
3,334,222
3,414,851
3,334,222
3,414,851
America's River Project
-
3,161
-
3,161
Refuse collection
4,546,168
4,387,683
4,546,168
4,387,683
Transit system
4,494,303
4,748,463
4,494,303
4,748,463
Salt
147,524
333,556
147,524
333,556
Total expenses
97,367,539
99,601,046
38,932,206
38,132,185
136,299,745
137,733,231
Increase in net position
before transfers and special items
26,170,958
11,777,536
12,366,499
6,510,219
38,537,457
18,287,755
Transfers
(12,845,032)
(10,561,636)
12,845,032
10,561,636
-
-
Special item - Transfer of roads
337,419
-
-
-
337,419
-
Increase in net position
13,663,345
1,215,900
25,211,531
17,071,855
38,874,876
18,287,755
Net position, beginning
377,860,409
376,644,509
212,382,366
195,310,511
590,242,775
571,955,020
Net position, ending
$ 391,523,754
$ 377,860,409
$ 237,593,897
$ 212,382,366
$ 629,117,651
$ 590,242,775
26
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
Governmental funds. The focus of the City's governmental funds is to provide information on near -term
inflows, outflows, and balances of spendable resources. Such information is useful in assessing the City's
financing requirements.
The City's governmental funds reported a combined fund balance of $83,071,944 at June 30, 2021.
$4,787,124 is in nonspendable for inventory, receivables, and prepaid items. $69,412 is nonspendable
endowment corpus. $40,983,166 is restricted for debt service and bond ordinance, road use tax funds,
capital improvements, community development programs, employee benefits, endowments, and various
grants. Council ordinance has committed $7,901,868 for capital improvements. $2,868,215 is assigned
for capital improvements and equipment. This leaves $26,462,159 for unassigned fund balances in the
government funds.
The General Fund's fund balance reserve goal is 20% of revenues. The fund balance of the General
Fund increased by $8,095,388 to $34,985,106. Gaming revenues increased by $682,709 or 9.15% in
fiscal year 2021. Charges for Services increased $2,810,757 coupled with an increase in taxes and a
decrease in investment earnings. General Fund expenditures decreased from $60,501,091 in 2020 to
$60,271,801 in 2021. The $229,290 decrease was primarily in the public safety and culture and
recreation functions.
The fund balance of special revenue fund Tax Increment Financing decreased by $88,741 to $9,460,782.
Tax revenues increased by $1,516,798 due to expansions and new businesses added in Dubuque
Industrial Center West. Tax Increment Financing expenditures increased $359,567.
The fund balance of the special revenue Community Development Fund increased by $210,228 to
$5,810,489. Intergovernmental revenue decreased from $10,666,574 in 2020 to $9,799,286 in 2021
primarily for HUD Resiliency grant.
The Debt Service Fund paid $27,524,288 in principal and $2,867,814 in interest and fiscal charges
during fiscal year 2021.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government -wide financial statements, but in more detail.
The combined net position of the enterprise funds at June 30, 2021, totaled $237,593,897 of which the
unrestricted is $27,491,072.
The Sewer Fund had an increase of $891,005 for total net position of $31,304,593. Operating expenses
increased $539,665 primarily for employee expense and supplies and services. The Sewer Fund
operating income from operations was $2,458,294.
The Water Utility had an increase in net position by $2,895,319 for total net position of $36,946,487.
There was no increase in water rates in 2021.
The Storm Water Utility had an increase in net position of $18,721,605. Ending net position is
$101,497,524. Storm Water Utility had capital contributions of $13,183,694 which consisted of a capital
grant $5,951,737 and contribution of assets from governmental funds $7,015,050.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
The Parking Facilities had a increase in net position of $1,040,038. Ending net position is $48,225,373.
Operating income decreased $239,811. Parking Facilities had operating loss of $1,129,090 after
depreciation of $1,142,910 for fiscal year 2021.
Other Enterprise Funds net position increased by $1,663,564 to $19,619,920. This was primarily due to
Transit's increase of $1,752,722 in net position.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2020-2021 cash basis budget. The first amendment was
passed in September 2020 to reflect operating and capital budget carryovers (continuing appropriation
authority) from fiscal year 2020 and amended the fiscal year 2021 budget for operating and capital City
Council actions since the beginning of the fiscal year. The second budget amendment was passed in May
2021 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 $70,015,586. 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 $110,073,669 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 $56,002,266 less than the final amended budget; and, cash basis
expenditures were $109,677,910 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
28
CITY OF DUBUQUE9 IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business -type activities as
of June 30, 2021, amounts to $795,864,850 (net of accumulated depreciation). This investment in capital
assets includes land, buildings, improvements other than buildings, machinery and equipment,
infrastructure, and construction in progress. Additional information on the City's assets can be found in
Note 6 to the financial statements in this report.
CAPITAL ASSETS (net of accumulated depreciation)
Govememental Activities
2021
2020
Land $
105,126,170
$ 79,331,529
Buildings
143,301,022
139,555,836
Improvements other than buildings
27,926,021
24,726,686
Machinery and equipment
55,449,960
52,381,639
Infrastructure
265,956,733
239,440,410
Construction in progress
3,038,875
59,256,755
Accumulated depreciation
(183,960,074)
(174,829,436)
$
416,838,707
$ 419,863,419
Business -type Activities
2021
2020
$ 24,793,823
$ 24,793,823
158,590,934
159,240,025
183,083,727
178,550,296
115,764,515
115,073,585
44,479,731 34,113,325
(147,686,587) (143,277,265)
$ 379,026,143 $ 368,493,789
Total
2021
$ 129,919,993
301,891,956
211,009,748
171,214,475
265,956,733
47,518,606
(331,646,661)
$ 795,864,850
2020
$ 104,125,352
298,795,861
203,276,982
167,455,224
239,440,410
93,370,080
(318,106,701)
$ 788,357,208
Major expenditures during 2020-2021 were for the construction work on stormwater Bee Branch Creek
Restoration, completion of the Southwest Arterial, Miracle League Complex, Chaplain Schmitt Veterans
Memorial, and water main replacements.
Long-term debt. At year end, the City had $246,293,510 of debt outstanding. During fiscal year 2021, the
City issued $40,530,000 of general obligation bonds, which was used for a current refunding of bonds
and financing new projects. The City refunded $36,865,000 of general obligation bonds. The refunding
was undertaken to reduce total debt service payments. The results of the transaction is a reduction of
$4,905,780 in future debt service payments for an economic gain of $4,553,980.
Revenue capital loan notes have been issued for the planning and construction of sewer, stormwater, and
water capital projects through the State of Iowa State Revolving Loan Funds (SRF). The City issued an
additional $37,503,894 of SRF debt in 2021. The City has pledged income derived from the acquired or
constructed assets to pay debt service.
The City continues to operate under the State debt capacity limitations. The State limits the amount of
general obligation debt outstanding to 5% of the assessed value of all taxable property in the community.
Thus the City's debt capacity is $239,298,248. With $122,682,458 of debt applicable against the capacity,
the City is utilizing 42.73% of this limit. Additional information on the City's long-term debt can be
found in Note 7 of this report.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2021
ECONOMIC FACTORS
The City's unemployment rate as of October, 2021 was 3.2%, down from 3.3% in October, 2020. The
national average was 4.6% for October 2021, according to the Bureau of Labor Statistics. State of Iowa
was 3.9% as reported in October, 2021.
The assessed valuation of taxable property, net of exemptions, increased by 3.09% to $2,912,635,000. In
fiscal year 2021, the minimum monthly refuse rate decreased from $15.62 to $14.99, no increase to sewer
rate, no increase to water rates, and no increase to the storm water monthly fee ($8.29 per single family
unit (SFU)).
Impacts of the COVID-19 Pandemic. In mid -March of 2020, the COVID-19 outbreak was declared a
global pandemic. The disruption to businesses across a range of industries in the United States continues
to evolve. The full impact to local, regional and national economies, including that of the City of
Dubuque, remains uncertain. To date, the outbreak has not created a material disruption to the operations
of the City of Dubuque. However, the extent of the financial impact of COVID-19 will depend on future
developments, including the spread of the virus, duration and timing of the economic recovery. Due to
these uncertainties, management cannot reasonably estimate the potential impact to the City of Dubuque.
Fiscal year 2021 resulted in an increase in General Fund balance. The administratively initiated hiring
freeze, travel freeze, and capital project freeze was lifted during the last quarter of Fiscal Year 2021. This
was due to the team effort of the City Council and City staff, as well as the recovering economy and
CARES (Coronavirus Aid, Relief, and Economic Security) Act funding, and the ARPA (American
Rescue Plan Act) funding, the financial impacts of COVID-19 have not been as significant as originally
projected for fiscal year 2021. There are still however, revenue concerns going forward. City Council and
City staff plan to use caution going forward in fiscal year 2022 due to the uncertainty of the economy.
Requests for information. This financial report is designed to provide a general overview of the City's
finances for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to
the Director of Finance and Budget, 50 West 13th Street, Dubuque, Iowa 52001-4864.
30
Basic Financial Statements
Fiscal Year Ended June 30, 2021
City of Dubuque, Iowa
31
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2021
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Total Current Assets
NONCURRENT ASSETS
Expendable restricted cash and investments
Nonexpendable restricted cash and investments
Notes receivable
Capital assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Construction in progress
Accumulated depreciation
Total Noncurrent Assets
Total Assets
Primary Government
Component Units
Dubuque
Dubuque
Metropolitan
Dubuque
Convention
Governmental Business -type Area Solid
Initiatives and
and Visitors
Activities Activities Total Waste Agency
Subsidiaries
Bureau
$ 81,551,793 $ 35,683,396 $ 117,235,189 $ 7,655,878 $ 10,623,696 $ 750,130
611,401
611,401
26,205,437
-
26,205,437
-
-
-
2,610,284
4,946,313
7,556,597
496,311
41,684
14,133
373,339
-
373,339
-
-
-
101,795
20,617
122,412
11,168
-
576,196
-
576,196
-
207,774
9,373,607
4,057,242
13,430,849
-
-
1,170,839
1,012,801
2,183,640
-
127,809
7,560
576,062
75,011
651,073
31,721
-
8,841
123,150,753
45,795,380
168,946,133
8,195,078
11,000,963
780,664
10,405,186 4,841,717 15,246,903 5,221,176 1,594,715 292,869
69,412 - 69,412 - - -
7,558,187 - 7,558,187 298,078
105,126,171
24,793,823
129,919,994
2,737,804
-
143,301,022
158,590,934
301,891,956
368,779
265,111
27,926,021
183,083,727
211,009,748
19,869,824
27,491
55,449,960
115,764,515
171,214,475
4,280,286
105,385
265,956,732
-
265,956,732
-
-
3,038,876
44,479,731
47,518,607
866,875
(183,960,075)
(147,686,587)
(331,646,662)
(9,472,629)
- (147,605)
434,871,492
383,867,860
818,739,352
23,872,115
1,892,793 543,251
558,022,245
429,663,240
987,685,485
32,067,193
12,893,756 1,323,915
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 15,235,670 1,208,004 16,443,674 124,836
OPEB related deferred outflows 374,380 77,783 452,163 9,491
Total Deferred Outflows of Resources 15,610,050 1,285,787 16,895,837 134,327
32
CITY OF DUBUQUE, IOWA EXHIBIT 1 (continued)
STATEMENT OF NET POSITION (continued)
JUNE 30, 2021
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Tax increment financing bonds payable
Accrued compensated absences
Accrued interest payable
Intergovernmental payable
Unearned revenue
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and postclosure care
Tax increment financing bonds payable
Accrued compensated absences
Net pension liability
Total OPEB liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
OPEB related deferred inflows
Succeeding year property tax
Deferred amount on refunding
Total deferred inflows of resources
NET POSITION
Net investment in capital assets
Restricted for/by:
Bond ordinance development agreement
Debt service
Employee benefits
Community development
Iowa Finance Authority Trust
Capital projects
Franchise agreement
Endowments, expendable
Endowments, nonexpendable
Other
State statute
Landfill closure and post closure care
Minority interest
Unrestricted
Total Net Position
See notes to financial statements.
Primary Government
Component Units
Dubuque
Dubuque
Metropolitan
Dubuque
Convention
Governmental Business -type Area Solid
Initiatives and
and Visitors
Activities Activities Total Waste Agency
Subsidiaries
Bureau
$ 6,426,250 $
2,196,904
$ 8,623,154 $
379,108 $
28,174 $ 313,625
2,207,536
366,875
2,574,411
42,843
- 57,579
274,974
1,034,205
1,309,179
-
3,910
46,195
6,195,000
6,241,195
-
-
3,472,820
3,057,226
6,530,046
435,000
-
355,000
355,000
-
635,000
-
635,000
-
425,099
67,676
492,775
1,696
199,543
349,314
548,857
18,801
9,041
-
9,041
96,211
14,090,859
-
14,090,859
-
- -
27,787,317
13,622,200
41,409,517
973,659
28,174 375,114
3,473,387
54,581
3,527,968
131,207
-
108,816,616
108,816,616
- -
38,272,545
31,046,949
69,319,494
7,251,815
-
31,949,834
31,949,834
-
-
-
-
2,955,149
17,609,178
-
17,609,178
-
6,121,491
703,005
6,824,496
228,948
55,128,237
5,671,122
60,799,359
586,066
5,226,013
1,085,789
6,311,802
132,488 -
125,830,851
179,327,896
305,158,747
11,154,466 - 131,207
153,618,168
192,950,096
346,568,264
12,128,125 28,174 506,321
1,711,929
218,386
1,930,315 22,571
246,798
51,277
298,075 6,256
26,205,437
-
26,205,437 -
326,209
135,371
461,580 -
28,490,373
405,034
28,895,407 28,827
387,768,367 207,159,931 594,928,298 10,964,124 250,382
2,140,740 2,942,894
5,083,634
58,582 -
58,582
25,773
25,773
7,831,672
7,831,672
1,456,033
1,456,033
20,410,799
20,410,799
680,470
680,470
117,591
117,591
69,412
69,412
1,292,085
1,292,085
-
-
-
185,328
2,080,700
1,525,039 - -
(30,327,770) 27,491,072
(2,836,698)
5,289,377 12,865,582 567,212
$ 391,523,754 $ 237,593,897
$ 629,117,651 $
20,044,568 $ 12,865,582 $ 817,594
33
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
EXHIBIT 2
FOR THE YEAR ENDED JUNE 30, 2021
Program Revenues
Net (Expense) Revenue and Changes in Net Position
Primary Government
Component Units
Dubuque
Operating Capital Grants
Metropolitan
Dubuque Dubuque
Charges for Grants and and
Total Program Governmental Business -type
Area Solid
Initiatives and Convention and
Functions/Programs Expenses
Services Contributions Contributions
Revenues Activities Activities Total
Waste Agency
Subsidiaries Visitors Bureau
Primary government
Governmental Activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities
Business -type activities
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
Refuse collection
Transit system
Salt
Total business -type activities
Total primary government
Component units
Dubuque Metropolitan Area Solid Waste
Agency
Dubuque Initiatives and Subsidiaries
Dubuque Convention and Visitors Bureau
Total Component Units
See notes to financial statements
$ 32,583,676 $
4,942,529 $
1,355,032 $
27,273 $
6,324,834
$ (26,258,842) $
$ (26,258,842)
20,949,455
10,937,121
14,315,077
8,883,557
34,135,755
13,186,300
13,186,300
1,487,042
425,872
13,216
1,275
440,363
(1,046,679)
(1,046,679)
11,341,436
2,876,779
810,376
3,354,115
7,041,270
(4,300,166)
(4,300,166)
18,168,279
-
7,729,565
-
7,729,565
(10,438,714)
(10,438,714)
10,046,004
1,328,056
213,552
1,541,608
(8,504,396)
(8,504,396)
2,791,647
-
-
-
(2,791,647)
(2,791,647)
97,367,539
20,510,357
24,436,818
12,266,220
57,213,395
(40,154,144)
(40,154,144)
12,277,013
13,070,575
183,474
13,254,049
977,036
977,036
7,968,029
9,608,742
275,715
9,884,457
1,916,428
1,916,428
6,164,947
5,177,696
5,993,774
6,085,670
17,257,140
11,092,193
11,092,193
3,334,222
2,007,307
81,054
-
2,088,361
(1,245,861)
(1,245,861)
4,546,168
4,424,410
87
-
4,424,497
(121,671)
(121,671)
4,494,303
168,493
3,819,562
146,251
4,134,306
(359,997)
(359,997)
147,524
125,189
125,189
(22,335)
(22,335)
38,932,206
34,582,412
9,894,477
6,691,110
51,167,999
12,235,793
12,235,793
$ 136,299,745 $
55,092,769 $
34,331,295 $
18,957,330
$ 108,381,394 $
(40,154,144) $ 12,235,793
$ (27,918,351)
$ 5,863,963 $ 6,433,722 $ 598 $ $ 6,434,320
381,564 128,519 - 128,519
1,030,935 1,235,548 255,155 1,490,703
$ 7,276,462 $ 7,797,789 $ 255,753 $ $ 8,053,542
General revenues
Property taxes
Local option sales tax
Hotel motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Miscellaneous
Gain on disposal of capital assets
Transfers
Special item - Transfer of roads
Total general revenues and transfers
Change in Net Position
Net position, beginning of year
Net position, ending of year
39,524,078
39,524,078
11,328,295
11,328,295
2,036,045
2,036,045
4,920,610
4,920,610
8,077,003
8,077,003
142,102
130,706 272,808
570,357 $
- (253,045)
- - 459,768
570,357 (253,045) 459,768
67,819 - 401
- 460,990 -
296,969
-
296,969
(12,845,032)
12,845,032
-
337,419
-
337,419
-
-
53,817,489
12,975,738
66,793,227
67,819
460,990
401
13,663,345
25,211,531
38,874,876
638,176
207,945
460,169
377,860,409
212,382,366
590,242,775
19,406,392
12,657,637
357,425
$ 391,523,754 $
237,593,897 $
629,117,651 $
20,044,568 $
12,865,582 $
817,594
34
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35
CITY OF DUBUQUE, IOWA
BALANCE SHEET EXHIBIT 3
GOVERNMENTAL FUNDS
JUNE 30, 2021
Special Revenue
Tax
Increment
Community
General
Financing
Development
ASSETS
Cash and pooled cash investments
$ 43,566,563 $
6,325,895 $
1,596,089
Receivables
Property tax
Delinquent
342,630
218,721
-
Succeeding year
23,480,087
-
Accounts and other
2,258,720
Special assessments
9,486
-
-
Accrued interest
43,082
40,728
5,589
Notes
3,215,744
-
3,899,715
hntergovernmental
1,699,206
2,568,585
Due from other funds
1,587,180
-
Inventories
214,520
123,195
Prepaid items
465,374
-
10,605
Restricted cash and pooled cash investments
288,264
2,962,258
-
Total Assets
$ 77,170,856 $
9,547,602 $
8,203,778
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
$ 1,769,687 $
86,820 $
980,108
Accrued payroll
2,009,582
-
28,746
Intergovernmental payable
-
-
Due to other funds
-
Unearned revenue
13,899,030
-
-
Total Liabilities
17,678,299
86,820
1,008,854
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax
23,480,087
Special assessments
9,486
-
Grants
378,441
1,384,435
Other
639,437
-
Total Deferred Inflows of Resources
24,507,451
1,384,435
FUND BALANCES
Nonspendable
Endowment corpus
-
Inventory
214,520
Long-term notes receivable
3,215,744
-
Prepaid items
465,374
10,605
Restricted
Endowments
-
-
Library
Police
Veterans
Debt service
-
Bond ordinance
-
2,140,740
Capital improvements
197,264
7,320,042
Franchise agreement
-
-
Special assessments
Iowa Finance Authority Trust
-
Community programs
7,361,714
Employee benefits
-
Committed, capital improvements
-
Assigned
DRA gaming and distribution
2,868,215
Unassigned
28,023,989
-
(1,561,830)
Total Fund Balances
34,985,106
9,460,782
5,810,489
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $
77,170,856 $
9,547,602 $
8,203,778
See notes to financial statements.
36
Other
Governmental
Debt Service Funds Total
$ 55,821 $ 23,540,966 $ 75,085,334
4,709
45,341
611,401
280,730
2,444,620
26,205,437
-
167,216
2,425,936
-
363,853
373,339
32
9,108
98,539
-
1,018,924
8,134,383
-
5,105,816
9,373,607
-
1,587,180
780,798
1,118,513
100,083
576,062
-
7,224,076
10,474,598
$ 341,292 $
40,800,801 $
136,064,329
$ $ 1,392,585 $
4,229,200
127,951
2,166,279
9,041
9,041
1,584,146
1,584,146
191,828
14,090,858
3,305,551
22,079,524
280,730 2,444,620
26,205,437
- 334,560
344,046
- 1,618,850
3,381,726
1,980 340,235
981,652
282,710 4,738,265
30,912,861
69,412 69,412
780,798 995,318
- 3,215,744
100,083 576,062
117,591
117,591
1,110,620
1,110,620
8,402
8,402
- 143,759
143,759
58,582 -
58,582
- -
2,140,740
19,862,914
27,380,220
680,470
680,470
29,304
29,304
1,456,033
1,456,033
469,958
7,831,672
25,773
25,773
7,901,868
7,901,868
2,868,215
- - 26,462,159
58,582 32,756,985 83,071,944
$ 341,292 $ 40,800,801 $ 136,064,329
37
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38
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET EXHIBIT 3-1
TO THE STATEMENT OF NET POSITION
JUNE 30, 2021
Total fund balances - governmental funds $ 83,071,944
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets $ 600,442,192
Accumulated depreciation (183,658,401)
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
unavailable in the funds. Those revenues consist of:
Property tax 169,338
Special assessments 344,046
Grants and other 4,194,039
Pension and OPEB related deferred outflows of resources and deferred inflows of
resources are not due and payable in the current year and, therefore, are not
reported in the government funds as follows:
Deferred inflows of resources (1,893,196)
Deferred outflows of resources 15,247,563
416,783,791
4,707,423
13,354,367
Internal service funds are used by the City's management to
charge the costs of equipment maintenance and self-insurance
programs to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net position. 3,115,161
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
General obligation bonds
(41,745,365)
Tax increment financing bonds
(18,244,178)
Notes payable
(46,195)
Loans payable
(3,748,361)
Deferred amount on debt refundings
(326,209)
Accrued interest
(199,543)
Compensated absences
(6,546,590)
Net pension liability
(53,426,478)
Total OPEB liability
(5,226,013)
(129,508,932)
Net position of governmental activities
$ 391,523,754
See notes to financial statements.
39
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES EXHIBIT 4
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Revenue
Tax
Increment
Community
General
Financing
Development
REVENUES
Taxes
$ 36,517,711 $
12,178,248 $
-
Special assessments
-
-
8,751
Licenses and permits
1,983,531
-
Intergovernmental
3,534,723
9,799,286
Charges for services
13,396,447
5,497
Fines and forfeits
375,268
-
Investment earnings
67,207
(203,944)
62,101
Contributions
3,291,188
205,008
31,768
Gaming
8,077,003
-
-
Miscellaneous
625,685
500
28,760
Total Revenues
67,868,763
12,179,812
9,936,163
EXPENDITURES
Current
Public safety
29,037,921
Public works
5,323,488
-
Health and social services
964,047
103,444
Culture and recreation
11,674,458
-
112,547
Community and economic development
3,937,544
2,855,928
4,259,459
General government
6,948,480
-
-
Debt service
Principal
-
-
Interest and fiscal charges
42,272
533
Capital projects
2,343,591
-
5,249,952
Total Expenditures
60,271,801
2,855,928
9,725,935
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
7,596,962
9,323,884
210,228
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
-
-
-
Premium on refunding bonds
-
-
-
Transfers in
3,985,468
92,530
-
Transfers out
(3,680,198)
(10,299,298)
-
Insurance recovery
103,643
-
-
Sale of capital assets
89,513
794,143
-
Total Other Financing Sources (Uses)
498,426
(9,412,625)
-
SPECIAL ITEMS
Transfer of roads
-
Total Special Items
-
-
NET CHANGE IN FUND BALANCES
8,095,388
(88,741)
210,228
FUND BALANCES, BEGINNING 26,889,718 9,549,523 5,600,261
FUND BALANCES, ENDING $ 34,985,106 $ 9,460,782 $ 5,810,489
See notes to financial statements.
40
Other
Governmental
Debt Service Funds Total
$ 287,702 $ 8,825,367 $
57,809,028
- 92,468
101,219
-
1,983,531
18,650,367
31,984,376
78,971
13,480,915
- -
375,268
98,763 96,763
120,890
- 36,879
3,564,843
-
8,077,003
- 744,258
1,399,203
386,465 28,525,073
118,896,276
438
29,038,359
6,780,822
12,104,310
-
1,067,491
- 130,328
11,917,333
43,192 6,435,733
17,531,856
- 551,310
7,499,790
27,524,288 - 27,524,288
2,867,814 87,002 2,997,621
- 7,714,579 15,308,122
30,435,294 21,700,212 124,989,170
(30,048,829) 6,824,861 (6,092,894)
21,461,558
4,144,392
25,605,950
844,028
109,829
953,857
7,796,770
1,855,360
13,730,128
-
(5,166,480)
(19,145,976)
33,336
136,979
-
41,000
924,656
30,102,356
1,017,437
22,205,594
5,672,000 5,672,000
5,672,000 5,672,000
53,527 13,514,298 21,784,700
5,055 19,242,687 61,287,244
$ 58,582 $ 32,756,985 $ 83,071,944
41
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42
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXHIBIT 4-1
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2021
Net change in fund balances - total governmental funds $ 21,784,700
Amounts reported for governmental activities in the statement of activities are different because:
Capital outlays are reported as expenditures in governmental funds. However, in the
statement of activities, the cost of capital assets is allocated over their estimated useful lives
and reported as depreciation expense. In the current period, these amounts are:
Capital assets expended in governmental funds $
17,008,508
Transfers of capital assets to enterprise funds
(7,429,184)
Contributions from developers
4,020,837
Assets transferred to the state
(44,122,974)
Assets transferred from the state
38,788,393
Depreciation expense
(10,286,457)
(2,020,877)
In the statement of activities, only the gain or loss on the sale of capital assets is reported,
whereas in the governmental funds, the entire proceeds from the sale increase financial
resources. Thus, the change in net position differs from the change in fund balances by the
book value of the asset being disposed.
(965,891)
Because some revenues will not be collected for several months after the City's
fiscal year ends, they are not considered "available" revenues and are deferred
in the governmental funds. Deferred inflows of resources increased (decreased)
by these amounts this year:
Property tax
(156,382)
Special assessments
(64,587)
Grants and other
374,447
153,478
Debt proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net position.
Repayment of debt principal is an expenditure in the governmental funds,
but it reduces long-term liabilities in the statement of net position and does not
affect the statement of activities. Also, governmental funds report the effect of
issuance discounts and premiums when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities.
Debt issuances including premium
(26,559,807)
Debt repayments
27,527,508
967,701
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds. These items consist of:
Decrease in accrued interest
29,680
Amortization of bond discount/premium
50,772
Increase in compensated absences
(530,332)
Deferred amount on debt refundings
(70,929)
Pension adjustment
(3,809,820)
OPEB adjustment
(174,601)
Total additional expenses
(4,505,230)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The change in net position of the internal service funds is
reported with governmental activities.
(1,750,536)
Change in net position of governmental activities
$
13,663,345
See notes to financial statements.
43
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Prepaid items
Inventories
Total Current Assets
NONCURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
Improvements to other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
OPEB related deferred outflows
Total Deferred Outflows of Resources
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 3,835,683 $ 11,129,721 $ 14,505,515
2,022,651
1,483,998
777,503
10,150
2,945
7,222
-
-
2,810,991
2,667
8,132
41,104
300,314
706,037
-
6,171,465
13,330,833
18,142,335
349,464
1,195,231
2,080,000
254,858
209,244
21,393,569
72,257,722
11,080,162
-
53,994,700
1,635,950
121,345,419
38,616,615
63,785,498
1,305,088
1,337,317
6,716,010
36,225,627
(68,417,585)
(29,932,775)
(21,128,868)
98,043,627
53,494,089
159,140,835
98,393,091
54,689,320
161,220,835
104,564,556
68,020,153
179,363,170
262,554
299,347
59,100
17,256
18,119
7,032
279,810
317,466
66,132
44
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
Governmental
Activities -
Internal Service
Funds
$ 1,683,346 $
4,529,131 $
35,683,396 $
6,466,459
143,020
519,141
4,946,313
184,348
300
-
20,617
3,256
-
1,246,251
4,057,242
-
9,073
14,035
75,011
-
-
6,450
1,012,801
52,326
1,835,739
6,315,008
45,795,380
6,706,389
295,869
921,153
4,841,717
-
2,900,152
36,000
24,793,823
-
62,216,456
13,036,594
158,590,934
-
4,625,254
1,482,404
183,083,727
-
2,174,614
9,882,700
115,764,515
356,590
-
200,777
44,479,731
-
(20,069,440)
(8,137,919)
(147,686,587)
(301,674)
51,847,036
16,500,556
379,026,143
54,916
52,142,905
17,421,709
383,867,860
54,916
53,978,644
23,736,717
429,663,240
6,761,305
81,323
505,680
1,208,004
362,487
3,883
31,493
77,783
-
85,206
537,173
1,285,787
362,487
EXHIBIT 5
45
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2021
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
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Net pension liability
Total OPEB liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
OPEB related deferred inflows
Deferred amount on refunding
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Restricted by bond ordinance/development agreement
Unrestricted
Total Net Position
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 388,208 $
427,978 $
1,185,773
86,088
84,785
16,985
-
1,000,000
-
665,140
765,284
1,043,513
-
355,000
-
3,061,000
894,000
2,240,000
15,193
34,172
-
120,492
55,354
156,993
4,336,121
3,616,573
4,643,264
8,544,749
10,115,857
6,634,747
-
3,483,905
28,465,929
58,954,019
12,090,762
37,771,835
152,384
258,544
13,332
1,232,603
1,405,339
277,440
240,885
252,929
98,160
69,124,640
27,607,336
73,261,443
73,460,761
31,223,909
77,904,707
47,465
54,117
10,683
11,376
11,945
4,636
20,171
101,161
11,752
79,012
167,223
27,071
35,135,147
25,485,614
83,694,073
-
567,025
2,080,000
(3,830,554)
10,893,848
15,723,451
$ 31,304,593 $
36,946,487 $
101,497,524
46
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
Governmental
Activities -
Internal Service
Funds
$ 55,032 $
139,913 $
2,196,904 $
2,197,050
24,515
154,502
366,875
41,257
34,205
-
1,034,205
-
543,810
39,479
3,057,226
-
-
-
355,000
-
-
-
6,195,000
-
3,244
15,067
67,676
-
12,637
3,838
349,314
-
-
-
-
3,034
673,443
352,799
13,622,200
2,241,341
54,581
-
54,581
-
4,645,619
1,105,977
31,046,949
-
-
-
31,949,834
-
-
-
108,816,616
-
9,308
269,437
703,005
-
381,778
2,373,962
5,671,122
1,701,759
54,199
439,616
1,085,789
-
5,145,485
4,188,992
179,327,896
1,701,759
5,818,928
4,541,791
192,950,096
3,943,100
14,703
91,418
218,386
65,531
2,559
20,761
51,277
-
2,287
-
135,371
-
19,549
112,179
405,034
65,531
46,568,846 16,276,251 207,159,931 54,916
295,869 - 2,942,894 -
1,360,658 3,343,669 27,491,072 3,060,245
$ 48,225,373 $ 19,619,920 $ 237,593,897 $ 3,115,161
EXHIBIT 5
47
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings (loss)
Contributions
Interest expense
Gain (loss) on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 13,043,562 $
9,585,920 $
5,122,591
24,930
20,707
6,052
13,068,492
9,606,627
5,128,643
3,667,748
2,859,660
1,432,976
747,673
788,891
32,662
873,239
197,418
29,903
1,809,225
1,670,795
733,340
97,229
88,521
56,363
3,415,084
1,193,713
1,937,108
10,610,198
6,798,998
4,222,352
2,458,294
2,807,629
906,291
-
-
5,957,253
(28,207)
77,453
65,147
2,490
7,275
2,600
(1,638,733)
(805,427)
(1,942,595)
(25,999)
(361,489)
-
(1,690,449)
(1,082,188)
4,082,405
767,845
1,725,441
4,988,696
180,984 268,440 13,183,694
85,060 1,044,322 563,405
(142,884) (142,884) (14,190)
891,005 2,895,319 18,721,605
30,413,588 34,051,168 82,775,919
$ 31,304,593 $ 36,946,487 $ 101,497,524
48
Business -type Activities -Enterprise Funds
Governmental
Other
Activities -
Parking
Enterprise
Internal
Facilities
Funds
Total
Service Funds
$ 1,793,238 $
4,600,983 $
34,146,294
$ 14,796,977
214,069
37,824
303,582
49,314
2,007,307
4,638,807
34,449,876
14,846,291
757,935
5,013,654
13,731,973
2,580,533
286,439
105,725
1,961,390
30,849
162,967
1,166,094
2,429,621
86,889
679,680
1,560,335
6,453,375
13,137,157
106,466
74,267
422,846
747,582
1,142,910
1,097,236
8,786,051
38,540
3,136,397
9,017,311
33,785,256
16,621,550
(1,129,090) (4,378,504) 664,620 (1,775,259)
-
3,915,121
9,872,374
-
1,900
14,413
130,706
21,212
81,054
87
93,506
-
(156,295)
(2,326)
(4,545,376)
-
(41,530)
(168,358)
(597,376)
3,511
(114,871)
3,758,937
4,953,834
24,723
(1,243,961)
(619,567)
5,618,454
(1,750,536)
414,134 129,977 14,177,229 -
1,962,395 2,153,158 5,808,340 -
(92,530) (4) (392,492) -
1,040,038 1,663,564 25,211,531 (1,750,536)
47,185,335 17,956,356 212,382,366 4,865,697
$ 48,225,373 $ 19,619,920 $ 237,593,897 $ 3,115,161
EXHIBIT 6
49
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
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
Payment of interfund balances
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR)
NONCAPITAL FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Acquisition and construction of capital assets
Proceeds from issuance of debt
Premium on debt issuance
Payment of debt
hiterest paid
Intergovernmental grant proceeds
NET CASH PROVIDED (USED FOR) CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
POOLED INVESTMENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Business -type Activities -Enterprise Funds
Sewage
Disposal
Water
Stormwater
Parking
Works
Utility
Utility
Facilities
$ 12,571,231 $
9,266,916
$ 4,935,703 $
1,753,538
(3,493,792)
(3,614,818)
(1,181,723)
(1,265,936)
(3,564,775)
(2,738,516)
(1,458,683)
(763,832)
24,930
20,707
6,052
214,069
5,537,594
2,934,289
2,301,349
(62,161)
85,060
1,044,322
563,405
1,962,395
(142,884)
(142,884)
(14,190)
(92,530)
183,474
7,275
2,600
495,188
125,650
908,713
551,815
2,365,053
(696,446)
(2,301,689)
(1,906,961)
(679,796)
4,988,500
17,626,822
28,687,013
345,000
216,289
355,773
54,119
5,673
(8,601,080)
(17,210,044)
(31,751,236)
(943,792)
(1,663,521)
(842,574)
(1,953,943)
(184,742)
4,084,903
(5,756,258)
(2,371,712)
(2,786,105)
(1,457,657)
12,172
89,152
92,406
4,285
(80,842)
1,560,442
159,465
849,520
4,265,989
10,764,510
16,426,050
1,129,695
$ 4,185,147 $
12,324,952
$ 16,585,515 $
1,979,215
50
EXHIBIT 7
Business -type Activities -Enterprise Funds
Governmental
Other Activities -
Enterprise Internal
$ 4,506,726 $ 33,034,114 $ 14,880,806
(4,423,108) (13,979,377) (13,028,224)
(5,010,451) (13,536,257) (2,443,345)
37,824 303,582 49,314
(4,889,009) 5,822,062 (541,449)
2,153,158
5,808,340
(4)
(392,492) -
-
- 3,034
130,064
818,601 -
5,762,668
5,762,668 -
8,045,886
11,997,117 3,034
3,511
(878,755)
(6,463,647)
792,016
52,439,351
-
631,854
(11,932)
(58,518,084)
(1,925)
(4,646,705)
4,084,903
-
(100,596)
(12,472,328)
3,511
14,413
212,428
37,934
3,070,694
5,559,279
(496,970)
2,379,590
34,965,834
6,963,429
$ 5.450.284 $
40.525.113 $
6.466.459
(Continued)
51
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2021
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) decrease in receivables
(Increase) decrease in inventories and prepaid items
Increase (decrease)in accounts payable
Increase (decrease) in accrued liabilities
Increase (decrease) net pension liability
(Increase) decrease in deferred outflows
Increase in deferred inflows
Increase (decrease) in total OPEB liability
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources
Contributions of capital assets from Governmental Activities
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 2,458,294 $
2,807,629 $
906,291
$ (1,129,090)
3,415,084
1,193,713
1,937,108
1,142,910
(472,331)
(319,004)
(186,888)
(39,700)
4,284
27,770
20,856
(26)
29,290
(896,963)
(350,311)
(30,358)
34,572
6,495
(1,905)
2,102
186,767
209,577
13,918
40,366
(23,033)
(23,177)
358
(1,812)
(134,526)
(78,168)
(44,917)
(44,727)
39,193
6,417
6,839
(1,826)
3,079,300
126,660
1,395,058
1,066,929
$ 5,537,594 $
2,934,289 $
2,301,349
$ (62,161)
G 1 Rn QS2a It 'WZ ddn G F 1 FR Add I _
$ - $ - $ 7,015,050 $ 414,134
52
EXHIBIT 7
(continued)
Business-tvoe Activities -Enterprise Funds
Governmental
Other Activities -
Enterprise Internal
17—A. Tnf�l Car.,irA F„nAe
$ (4,378,504) $
664,620 $
(1,775,259)
1,097,236
8,786,051
38,540
(94,257)
(1,112,180)
83,829
(5,753)
47,131
197,240
(1,510,934)
(2,759,276)
777,013
38,134
79,398
8,714
249,097
699,725
340,472
(14,757)
(62,421)
(39,846)
(283,092)
(585,430)
(172,152)
13,821
64,444
-
(510,505)
5,157,442
1,233,810
$ (4,889,009) $ 5,822,062 $ (541,449)
$ $ 6,618,068 $
$ $ 7,429,184 $
53
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY NET POSITION EXHIBIT 8
CUSTODIAL FUNDS
JUNE 30, 2021
ASSETS
Cash and pooled cash investments
Accounts receivable
Prepaids
Accrued interest
Total Assets
NET POSITION
Restricted for individuals, organizations,
and other governments
Total Net Position
See notes to financial statements.
Custodial
Funds
2,252,741
48,451
3,064
664
$ 2,304,920
$ 2,304,920
$ 2,304,920
54
CITY OF DUBUQUE, IOWA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION EXHIBIT 9
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
ADDITIONS
Cable franchise fee
Racing association
Miscellaneous
Total Additions
DEDUCTIONS
Equipment acquisition
Total Deductions
CHANGE IN NET POSITION
NET POSITION, BEGINNING, AS RESTATED
NET POSITION, ENDING
See notes to financial statements.
Custodial
Funds
$ 196,749
120,000
3,340
320.089
5,506
5,506
314,583
1,990,337
$ 2,304,920
55
THIS PAGE IS INTENTIONALLY LEFT BLANK
56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part
of this report. The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand, Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long -Term Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Pension Plans
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. Contingencies
16. Prospective Accounting Pronouncements
17. Tax Abatements
18. Adoption of New Standard
19. Transfer of Jurisdiction
57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six -member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the government -wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E of
the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to provide
solid waste management for the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible for the day-to-day operations
of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end. During
the year ended June 30, 2021, $676,927 of the Dubuque Metropolitan Area Solid Waste Agency's
charges for services were related to services provided to the City of Dubuque.
Dubuque Initiatives and Subsidiaries is a non-profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque, Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2008, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
Dubuque Convention and Visitors Bureau is a non-profit corporation organized under the laws of Iowa
and Section 501(c)(3) of the Internal Revenue Code. The Organization's purpose is to strengthen the
Dubuque area economy by competitively marketing the area as a destination for conventions, tour groups,
sporting events and individual travelers. The Organization's articles require that its board members
include one City Council member, the City of Dubuque Mayor and the City Manager. In the event of
dissolution, any assets or property of the Organization shall be distributed to the City of Dubuque, Iowa
after paying or making provision for the payment of all liabilities of the Corporation. The City collects
hotel/motel taxes and forwards 50% to the CVB as the primary source of funds for its operations. The
CVB is presented as a governmental fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau present their
financial information in accordance with the Financial Accounting Standards Board (FASB).
Complete financial statements for the Component Units may be obtained from the City of Dubuque's
Finance Department for the Dubuque Metropolitan Area Solid Waste Agency and Dubuque Area
Convention and Visitors Bureau, and the Economic Development Office for Dubuque Initiatives and
Subsidiaries. These offices are located at: City Hall, 50 West 13th Street, Dubuque, Iowa 52001.
58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing financial
interest or responsibility by the participating governments. City officials are members of the following
boards and commissions:
City of Dubuque Conference Board
Dubuque County E-911 Committee
Dubuque Drug Task Force
Government -wide and Fund Financial Statements
The government -wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business -type activities, which rely to a significant extent on fees
and charges for services. Likewise, the primary government is reported separately from the legally
separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the government -wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government -wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period (year-end).
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Expenditures generally are recorded when a liability is incurred, as under accrual accounting. However,
debt service expenditures, as well as expenditures related to compensated absences and claims and
judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, interest, special assessments, and grants are susceptible to
accrual. Sales taxes are considered measurable and available at the time the underlying transaction
occurs, provided they are collected by the City within 60 days after year-end. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Tax Increment Financing Fund is used to account for the receipt of property taxes, for the
payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long-term debt service.
The Community Development Fund is used to account for the use of Community Development
Block Grant funds as received from federal and state governmental agencies.
The Debt Service Fund is used to account for the accumulation of resources and payment of
general obligation bond principal and interest from governmental resources and special
assessment bond principal and interest from special assessment levies when the government is
obligated in some manner for the payment.
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account for the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City's water facilities and
services.
The Stormwater Utility Fund is used to account for the operations of the City's stormwater
services.
The Parking Facilities Fund is used to account for the operations of the City -owned parking
ramps and other parking facilities.
Additionally, the City reports the internal service fund type. Internal service funds are used to account
for general, garage, stores/printing, health insurance, and worker's compensation insurance services
provided by one department to other departments of the City on a cost -reimbursement basis. These funds
cannot be used to support City activities.
Fiduciary funds, other than custodial funds, use the economic resources measurement focus and the full
accrual basis of accounting. Custodial funds use the full accrual basis of accounting but do not have a
measurement focus and therefore report only assets and liabilities. The City reports Custodial Funds to
account for assets held by the City as an agent under the cable franchise agreement and for the Dubuque
Racing Association. 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements.
Exceptions to this general rule are charges between the City's water and sewer function and various other
functions of the City. Eliminations of these charges would distort the direct costs and program revenues
reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first, then unrestricted resources as they are needed.
Assets, Deferred Outflows of Resources, Liabilities, Deferred Inflows of Resources, and Net
Position/Fund Balance
Deposits and Investments
The City's cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
The cash balances of most City funds are pooled and invested. Interest earned on investments is recorded
in the General Fund unless otherwise provided by law. Investments are stated at fair value except for the
investment in the Iowa Public Agency Investment Trust and non-negotiable certificates of deposit which
are valued at amortized cost.
For purposes of the Statement of Cash Flows, all short-term cash investments that are highly liquid are
considered to be cash equivalents. Cash equivalents are readily convertible to known amounts of cash
and, at the day of purchase, have a maturity date no longer than three months.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at year-end
are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governmental activities and business -type activities are reported in the government -wide
financial statements as "internal balances."
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund
balance account in applicable governmental funds to indicate that they are not available for appropriation
and are not expendable available financial resources.
Property tax receivable is recognized in the funds on the levy or lien date, which is the date that the tax
asking is certified by the City to the County Board of Supervisors.
Current year delinquent property tax receivable represents taxes collected by the County but not remitted
to the City at June 30, 2021, and 2021 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 31 of each year for
the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following
fiscal year becomes effective on the first day of that year. Although the succeeding year property tax
receivable has been recorded, the related revenue is reported as a deferred inflow of resources in both the
government -wide and fund financial statements and will not be recognized as revenue until the year for
which it is levied.
Property taxes are levied as of July 1 on property values assessed as of January 1 of the previous year.
The tax levy is divided into two billings. The billings are due September 1 and March 1. On September
30 and March 31, the bill becomes delinquent, and penalties and interest may be assessed by the City.
Special asssessment receivable represents the amounts due from individuals for work done which benefits
their property. These assessments are payable by invidviduals in not less than ten nor more than twenty
annual installments. Each annual installment with interest on the unpaid balance is due on September 30
and is subject to the same interest and penalties as the other tax.
Inventories and Prepaid Items
Inventories included in the governmental funds are valued at cost using the first -in first -out (FIFO)
method. The costs of governmental fund inventories are recorded as expenditures when consumed rather
than when purchased.
Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on
the FIFO method.
Inventories included in internal service funds are stated at cost and consist of consumable supplies. The
cost of these supplies is recorded as an expense at the time they are removed from inventory for use.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The costs of governmental fund prepaids are recorded as expenditures when consumed
rather than when purchased.
62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the statement of net position because their use is
limited by applicable bond covenants. The "revenue bond operating" account is used to report resources
set aside to subsidize potential deficiencies from the enterprise fund's operation that could adversely
affect debt service payments. The "revenue bond sinking" account is used to segregate resources
accumulated for debt service payments over the next twelve months. The "revenue bond reserve" account
is used to report resources set aside to make up potential future deficiencies in the revenue bond sinking
account.
Certain assets of the special revenue funds and capital project funds are classified as restricted assets
because their use is limited by debt agreement, the City's cable television franchise agreement, or Iowa
Finance Authority housing program agreement.
Certain assets of the Dubuque Metropolitan Area Solid Waste Agency are classified as restricted assets
because their use is restricted by state statute for certain specified uses.
Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or business -type
activities columns in the government -wide statement of net position and in the proprietary funds
statement of net position. Capital assets are defined by the government as assets with an initial, individual
cost of more than $100,000 for infrastructure and intangible assets, $20,000 for building assets, and
$10,000 for the remaining assets, and an estimated useful life of more than one year. Such assets are
recorded at historical cost or estimated historical cost if purchased or constructed. Donated capital assets
are recorded at acquisition value at the date of donation. The costs of normal maintenance and repair not
adding to the value of the asset or materially extending asset lives are not capitalized. All of the City's
infrastructure has been recorded, including infrastructure acquired prior to June 30, 1980.
Major outlays for capital assets and improvements are capitalized as projects are constructed. There was
no interest incurred during the construction phase of capital assets of business -type activities to capitalize
with the value of the assets constructed in the current year.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Assets
Years
Buildings
40 to 125
Improvements other than buildings
15 to 50
Machinery and equipment
2 to 30
Infrastructure and intangibles
15 to 75
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net position that applies to a future period(s)
and will not be recognized as an outflow of resources (expense/expenditure) until then. Deferred outflows
of resources consist of unrecognized items not yet charged to pension and OPEB expense and
contributions from the employer after the measurement date but before the end of the employer's
reporting period.
Compensated Absences
The City allows employees to accumulate a limited amount of earned but unused vacation and sick pay
benefits. Vacation pay is payable to employees upon retirement or termination. Sick pay is payable only
upon retirement, in which event, employees with twenty years or more of service are paid 100% of their
accrued sick leave balance over a five year period. All vacation pay and applicable sick pay benefits are
accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
Long -Term Obligations
In the government -wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business -type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using
the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuance's are reported as other financing sources while
discounts on debt issuance's are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Pensions
For purposes of measuring the net pension liability, deferred outflows of resources, and deferred inflows
of resources related to pensions, and pension expense, information about fiduciary net position of the
Iowa Public Employees' Retirement System and the Municipal Fire and Police Retirement System
(Systems') and additions to/deductions from the Systems' fiduciary net position have been determined on
the same basis as they are reported by the Systems'. For this purpose, benefit payments (including refunds
of employee contributions) are recognized when due and payable in accordance with the benefit terms.
Investments are reported at fair value. For the governmental activities, the net pension liability is
generally liquidated by the General Fund, Community Development Fund, and Section VIII Housing
Fund.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Total OPEB Liability
For purposes of measuring the total OPEB liability, deferred outflows of resources related to OPEB and
OPEB expense, information has been determined based on the City's actuary report. For this purpose,
benefit payments are recognized when due and payable in accordance with the benefit terms. For the
governmental activities, the total OPEB liability is generally liquidated by the General Fund, Community
Development Fund, and Section VIII Housing Fund.
Deferred Inflows of Resources
Deferred inflows of resources represents an acquisition of net position that applies to a future period(s)
and will not be recognized as an inflow of resources (revenue) until that time. Although certain revenues
are measurable, they are not available. Available means collected within the current year or expected to
be collected soon enough thereafter to be used to pay liabilities of the current year. Deferred inflows of
resources in the governmental fund financial statements represent the amount of assets that have been
recognized, but the related revenue has not been recognized since the assets are not collected within the
current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current
year. Deferred inflows of resources consist of property tax receivable and other receivables not collected
within sixty days after year end.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax
and tax increment financing receivable that will not be recognized as revenue until the year for which
they are levied, and unrecognized items not yet charged to pension and OPEB expense.
Net Position/Fund Balance
The Dubuque Metropolitan Area Solid Waste Agency's restricted net position represents outside
third -party restrictions and amounts restricted for minority interest of the Agency. The Agency is
restricted to using certain amounts for purposes specified by state statute. The net position restricted for
minority interest is calculated at 22.7% of unrestricted net position, based on the 1976 revenue bond
resolution authorizing the issuance of revenue bonds for the construction of the landfill.
In the government -wide and proprietary fund financial statements, net position is displayed in three
components as follows:
• Net investment in capital assets: This consists of capital assets, net of accumulated depreciation,
less the outstanding balances of any bonds, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets. Net investment in capital assets
excludes unspent debt proceeds. Unspent debt proceeds were $6,969,421 for the governmental
activities and $1,898,823 for business -type activities.
• Restricted: This consists of net position that is legally restricted by outside parties or by law
through constitutional provisions or enabling legislation. Net position restricted through enabling
legislation as of June 30, 2021 consists of $58,582 for debt service and $25,773 for employee
benefits. All other restrictions are by outside parties through grants, debt agreements or donors.
• Unrestricted: This consists of net position that does not meet the definition of restricted or net
investment in capital assets.
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
In the governmental fund financial statements, fund balances are classified as follows:
• Nonspendable: Nonspendable fund balances cannot be spent because they are not expected to be
converted to cash or they are legally or contractually required to remain intact.
• Restricted: Restricted fund balances are restricted to specific purposes when constraints placed
on the use of the resources are either externally imposed by creditors, grantor or state or federal
laws or imposed by law through constitutional provisions or enabling legislation.
• Committed: Committed fund balances can be used only for specific purposes determined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year-end. Those committed amounts cannot be used for any other purpose unless the City
Council removes or changes the specified use by resolution.
• Assigned: Assigned fund balances contain self-imposed constraints of the government to be used
for a particular purpose. Intent can be expressed by the City Council or by an official or body to
which the City Council delegates the authority. The City Council has by resolution delegated the
authority to the City Manager, and Director of Finance and Budget.
• Unassigned: Unassigned fund balances are amounts not included in the other spendable
classifications. Positive unassigned fund balance amount is only appropriate in the general fund.
However in governmental funds, other than the general fund, if expenditures incurred for specific
purposes exceed the amounts that are restricted, committed, or assigned to those purposes, it may
be necessary to report a negative unassigned fund balance in that fund.
Sometimes the government will fund outlays for a particular purpose from both restricted and unrestricted
resources (the total of committed, assigned, and unassigned fund balance). In order to calculate the
amounts to report as restricted, committed, assigned, and unassigned fund balance in the governmental
fund financial statements a flow assumption must be made about the order in which the resources are
considered to be applied. It is the government's policy to consider restricted fund balance to have been
depleted before using any of the components of unrestricted fund balance. Further, when the components
of unrestricted fund balance can be used for the same purpose, committed fund balance is depleted first,
followed by assigned fund balance. Unassigned fund balance is applied last.
The budget guideline of the City of Dubuque maintains a General Fund working balance or operating
reserve of 20% of the total General Fund operating revenue requirements. An operating reserve or
working balance must be carried into a fiscal year to pay operating costs until tax money, or other
anticipated revenue is received.
The State of Iowa recommends a reasonable amount for a working balance as (a) anticipated revenues for
the first three months of the fiscal year, less anticipated expenditures or (b) 5% of the total General Fund
operating budget, excluding fringes and tort liability expenses.
The City's rating agency, Moody's Investor Service, recommends a reserve balance of at least 10% for
"A" rated cities. This is based on the fact that a large portion of the revenue sources are beyond the City's
control and therefore uncertain.
None of the City's policies qualify as stabilization arrangements.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30.2021
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
Implementation of GASB Statement No. 84
As of July 1, 2020 the City adopted GASB Statement No. 84, Fiduciary Activites. The objective of this
Statement is to improve the identification of fiduciary activities for accounting and financial reporting
purposes and how those activities should be reported. The requirements of this Statement will enhance
consistency and comparability by (1) establishing specific criteria for identifying activities that should be
reported as fiduciary activities and (2) clarifying whether and how business -type activities should report
their fiduciary activities. Greater consistency and comparability enhances the value provided by the
information reported infinancial statements for assessing government accountability and stewardship. The
effect on the implmentation of this standard on beginning net position is disclosed in Note 18.
67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 2 — DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2021:
Internal Service Funds:
General Service
Stores/Printing
Workers' Compensation Reserve
$ 901,118
636
134,415
The General Service, Stores/Printing, and Workers' Compensation Reserve deficit will be addressed
during next fiscal year's reallocation of expenses.
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS
Cash on Hand. Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year-end was $14,711 for the City and $1,200 for the
Dubuque Metropolitan Area Solid Waste Agency.
Deposits. At year-end, the City's carrying amount of deposits was $103,643,246, and the bank balance
was $103,765,847. The City's deposits in banks at June 30, 2021, were entirely covered by federal
depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa.
This chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
The carrying amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$12,875,854, and the bank balance was $12,875,854. The Agency's deposits in banks at June 30, 2021,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
M
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Investments. As of June 30, 2021, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturities (In Years)
Investment Type
Less Than 1
1 to 5
6 to 10
More than 10
Total
Money Market Funds-
U.S. Treasury
$ 939,631
$ -
$ -
$ -
$ 939,631
U.S. Treasury Securities
1,812,129
2,410,408
890,643
2,881,517
7,994,697
Federal Agency Obligations
579,411
15,100,095
1,658,430
4,774,861
22,112,797
Corporate Stock
99,163
-
-
-
99,163
$ 3,430,334
$ 17,510,503
$ 2,549,073
$ 7,656,378
$ 31,146,288
The City and the Dubuque Metropolitan Solid Waste Agency are authorized by statute to invest public
funds in obligations of the United States government, its agencies and instrumentality's; certificates of
deposit or other evidences of deposit at federally insured depository institutions approved by the City
Council or Board of Trustees and the Treasurer of the State of Iowa; prime eligible bankers acceptances;
certain high rated commercial paper; perfected repurchase agreements; certain registered open-end
management investment companies; certain joint investment trusts; and warrants or improvement
certificates of a drainage district.
Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Permanent Trust
Fund.
The City uses the fair value hierarchy established by generally accepted accounting principles based on
the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active
markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are
significant unobservable inputs.
All of the City's investments, except for U.S. Treasury Securities, Federal Agency Obligations, and
Managed Accounts L/T CD which were valued by the custodians of the securities using pricing models
based on credit quality, time to maturity, stated interest rates, and market -rate assumptions (Level 2
inputs), were determined using the last reported sales price at current exchange rates. (Level 1 inputs)
Interest Rate Risk. The City's investment policy limits the investment of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Risk. The City's investment policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City's investments in Money Market Funds and US Agencies were
rated AAA by Standard & Poor's.
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.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the City's deposits may not be returned to it. The City's deposits are entirely covered by federal
depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa.
This chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
Custodial Credit Risk — Investments. For an investment, this is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City had no custodial risk with regards to investments,
since all investments were held by the City or its agent in the City's name.
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investments earnings
associated with other funds. These funds are the employee benefits, community development, road use
tax, cable TV, general construction, transit system, general service, garage service, and stores/printing
funds.
The Dubuque Metropolitan Area Solid Waste Agency had a money market account valued at $1,488,672
as of June 30, 2021.
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 14,711
Carrying amount of deposits 103,643,246
Carrying amount of investments 31,146,288
Total $ 134,804,245
Government -wide
Cash and pooled cash investments $ 117,235,189
Cash and pooled cash investments - temporarily restricted 15,246,903
Cash and pooled cash investments - permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 2,252,741
Total $ 134,804,245
A reconciliation of cash and investments as shown on the government -wide statement of net position for the
Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand
Carrying amount of deposits
Total
Cash and pooled cash investments
Cash and pooled cash investments - temporarily restricted
Total
$ 1,200
12,875,854
$ 12,877,054
$ 7,655,878
5,221,176
$ 12,877,054
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
A reconciliation of cash and investments as shown on the government -wide statement of net position for the
Dubuque Initiatives and Subsidiaries (December 31, 2020) follows:
Deposits
Beneficial interest in assets held by others
Total
$ 10,623,696
1,594,715
$ 12,218,411
Cash and pooled cash investments $ 10,623,696
Cash and pooled cash investments -temporarily restricted 1,594,715
Total $ 12,218,411
A reconciliation of cash and investments as shown on the government -wide statement of net position for the
Dubuque Convention and Visitors Bureau (June 30, 2021) follows:
Deposits
Total
Cash and pooled cash investments
Cash and pooled cash investments -temporarily restricted
Total
$ 1,042,999
$ 1,042,999
$ 750,130
292,869
$ 1,042,999
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 4 — NOTES RECEIVABLE
The City provides low interest and no interest loans to promote economic and community development,
provide opportunities for home ownership to low and moderate income citizens and improve rental
properties for low income citizens. Loans may contain a forgivable portion if recipient meets specific
conditions such as job creation for economic development or residency requirements community
development. Loans are secured by mortgage liens against the property.
At June 30, 2021 the City had the following notes receivable.
Original
Interest
Current
Balance
Rate
Issued
Maturity
Balance
Portion
Downtown Rehabilitation Loan Program
Judy Davison
$ 300,000
3 %
2020
12/1/2040
$ 284,000
$ -
Clark Wolff
150,000
3
2001
5/l/2022
9,015
9,015
Gronen Adaptive
300,000
2
2006
5/l/2036
140,333
7,680
CARich Properties, LLC
120,000
-
2020
9/l/2030
111,000
12,000
Franklin Investments, LLC
300,000
3
2021
4/1/2041
258,000
-
HJD Landlord LLC
466,000
3
2016
4/l/2036
461,889
25,104
Interstate Building LLP
300,000
3
2010
9/22/2015
199,026
17,533
Urban Development
Action Grant
40 Main, LLC - Note A
300,000
-
2009
6/30/2036
225,000
15,000
Downtown Housing Incentive Loan
Caradco Landlord, LLC
4,500,000
3
2012
6/l/2030
3,179,982
207,187
$ 4,868,245
$ 293,519
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 4 — NOTES RECEIVABLE (continued)
Community Development Installment Loans Receivables
Residential Rehabilitation Installment Loan Programs
First Time Home Buyers
Local Housing Assistance Program (LHAP)
Homebuyers Assistance Program
Infill
RRP Reserve
Washington Neighborhood Revitalize
The Accessibility Rehabilitation Program (for rentals)
Iowa Finance Authority
HOME Program (1)
Historic Preservation Revolving Loan Fund/Historic
Preservation Housing Forgivable Loan Program
MicroLending
Interest
Current
Rate
Balance
Portion
6 %
$ 243,704
$ 55,000
6
3,700
1,440
6
1,143,820
132,000
6
218,493
3,607
-
109,584
31,000
-
35,762
1,000
6
286,668
7,000
-
1,018,924
22,629
-
116,171
14,000
6
8,076
7,000
-
81,236
8,000
$ 3,266,138
$ 282,676
(1) Principal payments deferred if one tenant is low income
At December 31, 2020, Dubuque Initiatives and Subsidiaries had the following notes receivable:
City of Dubuque, 5.00%, unsecured, matures July 2023 $ 105,267
Various Small Businessses, 1%, unsecured, matures July 2023 (2) 418,585
Less: allowance for doubtful accounts (18,000)
Less: current maturities (207,774)
Noncurrent portion $ 298,078
(2) The Organization offered local small businesses $10,000 to provide bridge financing for working capital until
borrower received additional funding from state, federal or local program funding related to COVID-19. There were
47 local participants that participated in this bridge loan program. Notes receivable are unsecured and due in
monthly payments of $338 beginning five months from the date of the note, including interest at 1.00%. All unpaid
principal and interest due at various dates from March 2023 through July 2023.
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2021, include amounts due to/from other funds. Interfund balances are as follows:
Governmental activities:
General Fund
Nonmaj or Governmental
Internal Service Funds
Due From
Other Funds
$ 1,587,180 $
Due To
Other Funds
1,584,146
- 3,034
$ 1,587,180 $ 1,587,180
These balances result from a time lag between the date that 1) transactions are recorded in the accounting system, and
2) payments between funds are made.
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 5 — INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2021, consisted of the following:
Transfer to
General
Tax increment
financing
Debt service
Nonmajor
Governmental
Sewage Disposal Works
Water utility
Stormwater utility
Parking facilities
Nonmajor enterprise
Transfers From
Tax Sewer
Increment Nonmajor Disposal Water Stormwater Parking Nonmajor
General Financing Governmental Works Utility Utility Facilities Enterprise
$ - $ 430,269 $ 3,255,237 $ 142,884 $ 142,884 $ 14,190 $ $ 4
Total
$ 3,985,468
-
-
- - 92,530
92,530
1,061,991
5,851,120
883,659 - -
7,796,770
440,696
1,036,370
378,294
1,855,360
85,060
-
-
85,060
21,315
1,019,144
3,863
1,044,322
177,978
-
385,427
563,405
-
1,962,395
-
1,962,395
1,893,158
-
260,000 - - - -
- 2,153,158
$ 3,680,198
$ 10,299,298
$ 5,166,480 $ 142,884 $ 142,884 $ 14,190 $ 92,530 $
4 $ 19,538,468
Net capital assets of $7,015,050 and $414,134 were transferred from governmental capital assets to Storm Water Utility and Parking Facilities,
respectively. The transfer was reported as a capital contribution in the Storm Water Utility and Parking Facilities Funds. No amounts were reported in
the governmental funds, as the amounts did not involve the transfer of financial resources.
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to the fund that statute or budget requires to expend
them, (2) move receipts restricted to debt service from the funds collecting the receipts to the debt service fund as debt service payments become due, (3)
use unrestricted revenues collected in the general fund to finance various programs accounted for in other funds in accordance with budgetary
authorizations, and (4) fund capital projects.
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2021, was as follows:
Primary Government:
Governmental activities:
Beginning Transfers
Transfers
Ending
Balance hi
Out
Increases
Decreases
Balance
Capital assets, not being
depreciated:
Land
$ 79,331,529 $
$
$ 26,424,501
$ (629,859)
$ 105,126,171
Construction in Progress
59,256,755
(7,429,184)
7,610,873
(56,399,568)
3,038,876
Total Capital assets, not
being depreciated
138,588,284
(7,429,184)
34,035,374
(57,029,427)
108,165,047
Capital assets, being
depreciated:
Buildings
139,555,836
3,756,497
(11,311)
143,301,022
Improvements other
than buildings
24,726,686
3,199,335
-
27,926,021
Machinery and equipment
52,381,639
4,510,201
(1,441,880)
55,449,960
Infrastructure
239,440,410
26,529,774
(13,452)
265,956,732
Total capital assets, being
depreciated
456,104,571
37,995,807
(1,466,643)
492,633,735
Less accumulated
depreciation for:
Buildings
(45,752,834)
(2,393,197)
11,311
(48,134,720)
Improvements other
than buildings
(12,739,575)
(878,888)
-
(13,618,463)
Machinery and Equipment
(30,410,900)
(3,321,385)
1,172,282
(32,560,003)
Infrastructure
(85,926,127)
(3,731,527)
10,765
(89,646,889)
Total accumulated
depreciation
(174,829,436)
(10,324,997)
1,194,358
(183,960,075)
Total capital assets, being
depreciated, net
281,275,135
27,670,810
(272,285)
308,673,660
Governmental activities
capital assets, net
$ 419,863,419 $
$ (7,429,184)
$ 61,706,184
$ (57,301,712)
$ 416,838,707
The decrease of construction in progress includes the transfer of assets to the State. Please see Note 19.
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 6 — CAPITAL ASSETS (continued)
Business -type activities:
Beginning Transfers
Balance In
Capital assets, not being
depreciated:
Land $ 24,793,823 $ - $
Construction in progress 34,113,325 7,429,184 _
Total Capital assets, not
being depreciated 58,907,148 7,429,184
Capital assets, being
depreciated:
Buildings
159,240,025
Improvements other
than buildings
178,550,296
Machinery and equipment
115,073,585
Total capital assets, being
depreciated
452,863,906
Less accumulated
depreciation for:
Buildings
(57,138,874)
Improvements other
than buildings
(39,432,486)
Machinery and equipment
(46,705,905)
Total accumulated
depreciation
(143,277,265)
Total capital assets, being
depreciated, net
309,586,641
Transfers Ending
Out Increases Decreases Balance
$ - $ - $ 24,793,823
- 10,316,754 (7,379,532) 44,479,731
- 10,316,754 (7,379,532) 69,273,554
- -
(649,091)
158,590,934
- 5,435,910
(902,479)
183,083,727
- 4,117,667
(3,426,737)
115,764,515
- 9,553,577
(4,978,307)
457,439,176
- (2,105,370)
549,245
(58,694,999)
- (3,011,860)
696,927
(41,747,419)
- (3,668,821)
3,130,557
(47,244,169)
- (8,786,051)
4,376,729
(147,686,587)
- 767,526
(601,578)
309,752,589
Business -type activities
capital assets, net $ 368,493,789 $ 7,429,184 $ $ 11,084,280 $ (7,981,110) $ 379,026,143
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 6 — CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety $ 910,080
Public works 6,153,563
Health and social services 3,393
Culture and recreation 2,362,320
Community and economic development 47,734
General government 809,367
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 38,540
Total depreciation expense - governmental activities $ 10,324,997
Business -type activities:
Sewage disposal works
$ 3,415,084
Water utility
1,193,713
Stormwater utility
1,937,108
Parking facilities
1,142,910
Refuse collection
174,967
Salt
27,639
Transit system
894,630
Total depreciation expense - business -type activities
$ 8,786,051
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 6 — CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency (Component Unit):
Beginning
Ending
Balance
Increases
Decreases
Balance
Capital assets, not being
depreciated:
Land
$ 2,737,804
$
$
$ 2,737,804
Construction in progress
3,295,599
1,537,543
(3,966,267)
866,875
Total Capital assets, not
being depreciated
6,033,403
1,537,543
(3,966,267)
3,604,679
Capital assets, being
depreciated:
Buildings
386,779
-
(18,000)
368,779
Improvements other
than buildings
15,903,557
3,966,267
-
19,869,824
Machinery and equipment
3,990,168
876,849
(586,731)
4,280,286
Total capital assets, being
depreciated
20,280,504
4,843,116
(604,731)
24,518,889
Less accumulated
depreciation for:
Buildings
(88,062)
(34,434)
2,400
(120,096)
Improvements other
than buildings
(6,569,737)
(351,047)
-
(6,920,784)
Machinery and equipment
(2,769,981)
(234,742)
572,974
(2,431,749)
Total accumulated
depreciation
(9,427,780)
(620,223)
575,374
(9,472,629)
Total capital assets, being
depreciated, net
10,852,724
4,222,893
(29,357)
15,046,260
Dubuque Metropolitan Area
Solid Waste, capital assets
$ 16,886,127
$ 5,760,436
$ (3,995,624)
$ 18,650,939
Depreciation expense of $620,223 was charged to the Dubuque Metropolitan Area Solid Waste Agency
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 7 — LONG-TERM DEBT
General Obligation Bonds. The City issues general obligation bonds to provide funds for the
acquisition and construction of major capital facilities. General obligation bonds have been issued for
both governmental and business -type activities. The original amount of general obligation bonds issued
in prior years was $92,080,500. During fiscal year 2021, the City issued $40,530,000 of general
obligation bonds, which was used for a current refunding of bonds and financing new projects. The City
refunded $36,865,000 of general obligation bonds. The refunding was undertaken to reduce total debt
service payments. The results of the transaction is a reduction of $4,905,780 in future debt service
payments for an economic gain of $4,553,980.
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, 2021, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Corporate Purpose Series 2016A
04/04/2016
06/01/17-06/01/35
2.00-3.75
$ 2,830,000 $
2,175,000
Corporate Purpose Refunding
Series 2016B
04/04/2016
06/01/16-06/01/28
2.00-3.00
10,920,000
3,570,000
Corporate Purpose Series 2016C
04/04/2016
06/01/17-06/01/35
2.00-3.13
4,145,000
3,230,000
Corporate Purpose Series 2017A
04/17/2017
06/01/18-06/01/30
3.00
8,495,000
3,650,000
Corporate Purpose
Refunding Series 2017B
04/17/2017
06/01/18-06/01/30
3.00
9,745,500
7,000,000
Corporate Purpose
Refunding Series 2017C
04/17/2017
06/01/18-06/01/30
3.00-3.45
2,120,000
1,605,000
Corporate Purpose Series 2018A
03/19/2018
06/01/18-06/01/31
3.00-4.00
4,950,000
3,959,998
Corporate Purpose
Refunding Series 2018B
03/19/2018
06/01/18-06/01/26
3.00-3.15
1,005,000
665,000
Corporate Purpose Series 2019A
06/20/2019
06/01/22-06/01/39
3.00
2,240,000
2,240,000
Corporate Purpose Series 2019B
06/20/2019
06/20/20-06/01/27
3.00
860,000
650,000
Corporate Purpose
Refunding Series 2019C
07/03/2019
06/01/20-06/01/32
3.00
4,240,000
3,560,000
Corporate Purpose
Refunding Series 2021A
06/02/2021
06/01/22-06/01/41
2.00
27,995,000
27,995,000
Corporate Purpose
Refunding Series 2021B
06/02/2021
06/01/22-06/01/36
2.00
12,535,000
12,535,000
$ 92,080,500 $
72,834,998
m
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year
June 30
2022
2023
2024
2025
2026
2027-2031
2032-2036
2037-2041
Total
Governmental Activities
Principal
$ 3,472,820
3,435,308
3,268,871
3,371,269
3,396,038
15,921,602
5,851,188
1,330,661
$ 40,047,757
Interest
$ 920,933
842,518
762,616
688,395
611,572
1,896,347
480,535
110,563
$ 6,313,479
Business -type Activities
Principal
Interest
$ 3,057,226
$ 843,972
3,119,664
765,642
3,061,127
681,944
3,018,770
600,014
2,908,939
519,489
12,883,370
1,444,974
4,448,805
245,415
289,340
17,535
$ 32,787,241 $ 5,118,985
Tax Increment Financing Bonds. The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges property tax revenues from the tax increment financing districts
to pay debt service. These bonds are generally issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi-annually. Tax increment financing bonds outstanding at
June 30, 2021, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Diamond Jo Parking Ramp 10/16/07 06/01/11-06/01/37 7.50% $ 23,025,000 $ 18,395,000 $ 635,000
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year
June 30
2022
2023
2024
2025
2026
2027-2032
2032-2036
2037
Total
Governmental Activities
Principal
$ 635,000
680,000
730,000
785,000
845,000
5,280,000
7,570,000
1,870,000
$ 18,395,000
Interest
$ 1,379,625
1,332,000
1,281,000
1,226,250
1,167,375
4,805,375
2,486,250
140,250
$ 13,818,125
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
Revenue Bonds. The City also issues bonds where the City pledges income derived from the acquired or
constructed assets to pay debt service. These bonds are generally issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. Revenue bonds
outstanding at June 30, 2021, are as follows:
Date of
Purpose
Issue
Maturity Dates
Water Utility Series 2008D
11/04/2008
06/01/10-06/01/23
Water Utility Series 201OD
09/21/2010
06/01/12-06/01/30
Sales Tax Incremental 2014
06/14/2014
06/01/23-06/01/29
Sales Tax Incremental 2015A
06/15/2015
06/01/23-06/01/31
Amount Amount
Interest Originally Outstanding
Rates Issued End of Year
3.00-5.00 % $ 1,195,000
$ 215,000
2.00-4.00 5,700,000
3,610,000
4.00-5.00 7,190,000
7,190,000
3.25-4.00 20,800,000
20,800,000
$ 34,885,000
$ 31,815,000
The City has pledged future water customer revenues, net of specified operating expenses, to repay
$1,195,000 of water revenue bonds, issued in November 2008, to provide financing for water main
replacements and repairs, construction of water main extensions, and the acquisition and installation of a
pump station radio communication equipment and facilities. The bonds are payable solely from water
customer net operating revenues and are payable through 2023. The City has pledged future water
customer revenues, net of specified operating expenses, to repay $5,700,000 of water revenue bonds,
issued in September 2010, to provide funds to pay costs of constructing and equipping improvements,
and extensions to the municipal water system. The bonds are payable solely from water customer net
operating revenues and are payable through 2030. Net operating income is expected to equal or exceed
125% of the annual principal and interest payments on both bonds.
The City shall at all times prescribe, fix, and maintain and collect rates, fees and other charges for their
services and facilities furnished by the system that are fully sufficient at all times which will (a) equal at
least 125% of the debt service requirement of all bonds and parity obligations then outstanding for the
year of computation; (b) enable the City to make all required payments, if any, into the debt service
reserve fund. For the current year, principal and interest paid and total customer net revenues (operating
income, plus interest earnings, plus depreciation expense) were $500,048 and $4,078,795, respectively.
Except with respect to the Senior SRF Bonds, or any future SRF bonds, the City covenants to establish
and maintain a debt service reserve fund in the amount determined to be a reasonable reserve for the
payment of principal and interest on the Bonds and outstanding parity obligations, (b) the maximum
annual principal and interest requirements on the bonds and outstanding parity obligations, or (c) 125%
of the average annual principal and interest requirements on the bonds.
During the year ended June 30, 2021, the City was in compliance with the revenue bonds' provisions.
Pursuant to the Master Resolutions, approved by the City Council, Sales Tax Increment Revenues
received as a result of the Flood Mitigation Program under the Award Agreement shall be applied solely
for the benefit of the holders of the Series 2015A Bonds $20,800,000, and outstanding from time to time,
any other Senior Bonds, the Series 2014 Bonds, $7,190,000 and any other second lien bonds that may be
issued in the future under the Master Resolution. The bonds provide financing for costs for acquisition,
construction and installation and equipping of the Bee Branch Watershed Flood Mitigation Project.
The total principal and interest remaining to be paid on all revenue bonds is $38,969,235.
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
The City issued $7,190,000 Sales Tax Increment Revenue Bonds, June 2014 and $20,800,000 June 2015,
for the purpose of paying costs of the acquisition, construction and installation and equipping of the Bee
Branch Watershed Flood Mitigation Project. The master resolution establishes a Debt Service Reserve
Account that may secure one or more series of Bonds. Upon the issuance of the Series 2015A Bonds a
deposit of $2,080,000 was made into the Debt Service Reserve Account, and the Series 2015A Bonds
shall be secured by amounts held in the Debt Service Reserve Account. The Series 2014 Bonds are
revenue bonds secured by and payable as provided in the Master Resolution from all Pledged Revenues
which are pledged under the Master Resolution to the payment of the principal and interest of the Series
2014 Bonds. There shall be no deposit made into the Debt Service Reserve Account for Series 2014
Bonds, there is no debt service reserve requirement applicable to the Series 2014 Bonds, and Series 2014
Bonds shall not be secured by any amounts held in the Debt Service Reserve Account.
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year
Business -type Activities
June 30
Principal
Interest
2022
$ 355,000 $
1,072,148
2023
2,490,000
1,058,825
2024
3,535,000
1,139,525
2025
3,680,000
1,000,844
2026
3,770,000
857,481
2027-2031
17,985,000
2,025,413
Total
$ 31,815,000 $
7,154,236
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, 2021, are as follows:
Amount
Amount
Date of
Interest Originally
Outstanding Current
Purpose
Issue Maturity Dates
Rates Issued
End of Year Portion
40 Main LLC
08/06/09 06/30/11-08/16/21
6.50 % $ 690,529
$ 46,195 $ 46,195
During Fiscal Year 2010, the City issued $690,529 Urban Renewal Tax Increment Revenue Notes,
Taxable Series 2009 (40 Main LLC Project). Interest is payable each December 31 and June 30 at a rate
of 6.50%. Principal payments are due each December 31 and June 30 and range from $24,764 to $45,195
with final maturity in 2022. The proceeds were used for the construction of eighteen apartments for
market -rate rental and 7,800 square feet of retail space by the Developer on the Development Property in
accordance with the terms of the Development Agreement. The debt is owned by Premier Bank and;
therefore, constitutes a direct borrowing.
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2022 $ 46,195 $ 1,510
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
Capital Loan Notes. Revenue capital loan notes have been issued for the planning and construction of
sewer, stormwater, and water capital projects through the State of Iowa State Revolving Loan Funds. The
City issued an additional $3,967 of SRF debt in 2021 as part of the Catfish and Granger Creek sanitary
sewer construction project, $10,515 for sanitary sewer master plan, $27,494,466 for the Catfish Creek
stabilization project, $2,150,000 for CIWA purchase, $16,719 for Kerper sewer project, $1,550,814 for
Roosevelt tower, $191,172 for Eagle Point Park project, and $6,086,241 for upper Bee Branch culverts.
The City has pledged income derived from the acquired or constructed assets to pay debt service. Capital
loan notes payable at June 30, 2021, are as follows:
Final Amount
Date Maturity Interest Amount Outstanding Current
Authorized Date Rates Authorized End of Year Portion
Clear Wells
10/18/07
06/01/28
2.00
West 32nd St. Detention Basin
01/14/09
06/01/28
2.00
North Catfish Creek Stormwater
01/13/10
06/01/30
2.00
North Catfish Creek Sewer
01/13/10
06/01/30
2.00
Water Meter Replacement
02/12/10
06/01/30
2.00
Water and Resource Recovery Center
08/18/10
06/01/39
2.00
Bee Branch Stormwater
10/27/10
06/01/41
2.00
Cogeneration
05/17/13
06/01/33
2.00
Meter Replacement Sewer
05/31/13
06/01/30
2.00
Lower Bee Branch Stormwater
02/28/14
06/01/33
2.00
Bee Branch Stormwater
04/30/21
06/01/37
1.43
CIWA Purchase
07/07/17
06/01/37
2.00
Roosevelt Tower
09/22/17
06/01/40
2.00
Kerper Blvd
03/08/19
06/01/38
0.75
Bee Branch Culverts
06/07/19
06/01/40
2.00
Catfish and Granger Creek Sanitary
03/19/21
03/19/24
0.00
Auburn/Custer/Center Pl/Hawthorne
03/19/21
03/19/24
0.00
Sanitary Sewer Master Plan
03/19/21
03/19/24
0.00
% $ 1,037,000
$ 387,000
$ 50,000
1,847,000
778,000
101,000
800,000
423,000
41,000
912,000
483,000
47,000
7,676,000
1,83 7,000
158,000
74,285,000
55,423,000
2,588,000
7,850,000
6,013,000
218,000
3,048,000
1,972,000
147,000
3,058,000
1,837,000
158,000
1,029,000
216,999
16,000
22,138,000
20,426,262
1,176,000
10,198,000
6,546,761
501,000
4,400,000
4,214,000
121,000
2,763,000
2,285,538
688,000
16,382,000
12,154,573
185,000
350,000
3,967
-
160,000
-
-
970,000
10,515
-
$ 158,903,000
$ 115,011,615
$ 6,195,000
On October 18, 2007 the City entered into an agreement with the Iowa Finance Authority Drinking Water
Program Revolving Loan Fund for a line of credit up to $1.037 million. This line of credit was issued to
finance the clear well improvements by the Water Fund. The interest rate for this line of credit is 2.00%.
Annual payments began in Fiscal Year 2008, with the last payment in Fiscal Year 2028. The note
payable is payable solely from the Water Fund. The debt is owned by the Iowa Finance Authority and;
therefore, constitutes direct borrowing.
On January 14, 2009 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $1.847 million. This line of credit was issued to
finance the West 32nd Stormwater Detention Basin improvements by the Stormwater Fund. The interest
rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2009, with the last payment in
Fiscal Year 2028.The note payable is payable solely from the Stormwater Fund. The debt is owned by
the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $800,000. This line of credit was issued to
finance the North Catfish Creek improvements by the Stormwater Fund. The interest rate for this line of
credit is 2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year
2030.The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $912,000. This line of credit was issued to
finance the North Catfish Creek improvements by the Sanitary Sewer Fund. The interest rate for this line
of credit is 2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year
2030. The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa
Finance Authority and; therefore, constitutes direct borrowing.
On February 12, 2010 the City entered into an agreement with the Iowa Finance Authority Drinking
Water Program Revolving Loan Fund for a line of credit up to $7.676 million. This line of credit was
issued to finance the Water Meter Replacements by the Water Fund. The interest rate for this line of
credit is 2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 2030.
The note payable is payable solely from the Water Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
On August 18, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $74.285 million. This line of credit was issued to
finance the Water & Resource Recovery Center Renovation and the Green Alley Sponsorship Program
by the Sanitary Sewer Fund. The interest rate for this line of credit is 2.00%. Annual payments began in
Fiscal Year 2011, with the last payment in Fiscal Year 2039. The note payable is payable solely from the
Sanitary Sewer Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct
borrowing.
On October 27, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $7.85 million. This line of credit was issued to
finance the Bee Branch Creek Restoration by the Stormwater Fund. The interest rate for this line of
credit is 2.00%. Annual payments began in Fiscal Year 2011, with the last payment in Fiscal Year 2041.
The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
On May 17, 2013 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $3.048 million. This line of credit was issued to
finance the Water & Resource Recovery Center Cogeneration by the Sanitary Sewer Fund. The interest
rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2013, with the last payment in
Fiscal Year 2033. The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned
by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On May 31, 2013 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $3.058 million. This line of credit was issued to
finance the Meter Replacements by the Sanitary Sewer Fund. The interest rate for this line of credit is
2.00%. Annual payments began in Fiscal Year 2013, with the last payment in Fiscal Year 2030. The note
payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
On February 28, 2014 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $1.029 million. This line of credit was issued to
finance the costs of construction storm water drainage projects and improvements, including those costs
associated wtih the Lower Bee Branch Creek Resoration Project by the Stormwater Fund. The interest
rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2014, with the last payment in
Fiscal Year 2033. The note payable is payable solely from the Stormwater Fund. The debt is owned by
the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On June 19, 2015 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $31.418 million. This line of credit was refunded
on April 30, 2021 for $22,138,000 to change the type of debt from revenue debt to general obligation
debt. This line of credit was issued to finance the Upper Bee Branch Creek Restoration project and
Catfish Creek Sponsorship project by the Stormwater Fund. The interest rate for this line of credit is
1.43%. Annual payments began in Fiscal Year 2016, with the last payment in Fiscal Year 2037. The note
payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa Finance Authority
and; therefore, constitutes direct borrowing.
On July 7, 2017 the City entered into an agreement with the Iowa Finance Authority Drinking Water
Program Revolving Loan Fund for a line of credit up to $10.198 million. This line of credit was issued to
finance the purchase of the Central Iowa Water Association Water System and Improvements by the
Water Fund. The interest rate for this line of credit is 2.00%. Annual payments began in Fiscal Year
2018, with the last payment in Fiscal Year 2037. The note payable is payable solely from the Water
Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
On March 8, 2019 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $2.763 million. This line of credit was issued to
finance the reconstruction of the Kerper Sanitary Sewer project and the Eagle Point Park Sponsorship
Project by the Sanitary Sewer Fund. The interest rate for this line of credit is 0.75%. Annual payments
began in Fiscal Year 2019, with the last payment in Fiscal Year 2038. The note payable is payable solely
from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance Authority and; therefore,
constitutes direct borrowing.
On June 7, 2019 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $16.382 million. This line of credit was issued to
finance the construction of the Bee Branch Creek Restoration Railroad Culverts project by the
Stormwater Fund. The interest rate for this line of credit is 2.00%. Annual payments will begin in Fiscal
Year 2020, with the last payment in Fiscal Year 2040. The note payable is payable solely from the
Stormwater Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct
borrowing.
On September 22, 2017 the City entered into an agreement with the Iowa Finance Authority Drinking
Water Facilities Financing Program Revolving Loan Fund for a line of credit up to $4.4 million. This line
of credit was issued to finance the Roosevelt Street water tower and water distribution improvements and
the Eagle Point water treatment plant and water distribution improvements project by the Water Fund.
The interest rate for this line of credit is 2.00%. Annual payments will begin in Fiscal Year 2020, with
the last payment in Fiscal Year 2040. The note payable is payable solely from the Water Fund. The debt
is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
m
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
On March 19, 2021 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $350,000. This line of credit was issued to
finance the planning and design of the Catfish and Granger Creek Sanitary Sewer projects by the Sanitary
Sewer Fund. The interest rate for this line of credit is 0%. The line of credit matures in Fiscal Year 2024.
The note payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
On March 19, 2021 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $160,000. This line of credit was issued to
finance the planning and design of the Auburn and Custer/Center Place/Cooper and Maiden/Hawthorne
to Fengler Sanitary Sewer projects by the Sanitary Sewer Fund. The interest rate for this line of credit is
0%. The line of credit matures in Fiscal Year 2024. The note payable is payable solely from the Sanitary
Sewer Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct
borrowing.
On March 19, 2021 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $970,000. This line of credit was issued to
finance the planning and design of the Sanitary Sewer Master Plan project by the Sanitary Sewer Fund.
The interest rate for this line of credit is 0%. The line of credit matures in Fiscal Year 2024. The note
payable is payable solely from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance
Authority and; therefore, constitutes direct borrowing.
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year
Business -type
Activities
June 30
Principal
Interest
2022
$ 6,195,000
$ 2,241,625
2023
6,313,000
2,127,971
2024
6,443,000
2,005,933
2025
6,573,000
1,881,610
2026
6,710,620
1,754,388
2027-2031
34,982,293
10,138,289
2032-2036
32,861,398
3,434,514
2037-2041
14,930,390
667,027
2042-2044
2,914
105
Total
$ 115,011,615
$ 24,251,462
At June 30, 2021, the City of Dubuque had $8,306,291 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 2023. The Sewer Utility revenue capital loan notes covenants
include a requirement for the utility to produce net revenue of at least 110% of the current year debt service
requirement.
Loans Payable. Loans payable have been issued to fund several City projects. Loans payable at June 30,
2021, are as follows:
Amount
Amount
Date of
Interest
Originally
Outstanding
Current
Purpose
Issue
Maturity Dates
Rates
Issued
End of Year
Portion
Parking Lot Purchase
07/08/08
01/01/09-07/01/23
5.0 %
$ 400,000
$ 88,786
$ 34,205
Iowa Finance Authority
08/26/11
06/01/20-06/01/30
3.0
4,500,000
3,198,361
224,974
Bowling & Beyond Inc.
10/15/12
12/04/12-12/04/32
-
1,000,000
550,000
50,000
Central Iowa Water
12/01/16
12/01/17-12/01/21
3.0
5,000,000
1,000,000
1,000,000
$ 10,900,000
$ 4,837,147
$ 1,309,179
On July 8, 2008, the City issued a $400,000 loan. Interest is payable each July 1 and January 1 at a rate of
5.00%. Principal payments are due each July 1 and January 1 and range from $9,111 to $18,645 with final
maturity in 2024. The proceeds were used to purchase parking lots 87, 88, and the north 20 feet 3 inches of
lot 86. The debt is owned by Dubuque Initiatives and; therefore, constitutes a direct borrowing.
On August 26, 2011, the City issued $4.5 million loan. Interest is payable each December 1 and June 1 at a
rate of 3.00%. Principal payments are due each December 1 and June 1 and range from $82,922 to
$2,582,540 with final maturity in 2030.
m
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
The proceeds were used to pay costs of funding workforce housing assistance loans to private developers
constructing improvements and rehabilitating historic buildings for residential and commercial use in the
Greater Downtown Urban Renewal Area. The debt is owned by the Iowa Finance Authority and; therefore,
constitutes a direct borrowing.
On October 15, 2012, the City terminated the leases with Bowling & Beyond Dubuque, Inc. and entered into
a lease buyout agreement. The purchase price is $1.0 million. There is no interest. Principal payments are
due each July 25 in the amount of $50,000 with final maturity in 2032. The debt is owned by Michael K.
Schmidt and; therefore, constitutes a direct borrowing.
On December 1, 2016, the City issued a $5,000,000 loan. Interest is payable each December 1 at a rate of
3.00%. Principal payments of $1 million are due each December 1 with final maturity in 2022. The proceeds
were used to purchase water supply, service and territory. The debt is owned by Iowa Association of
Regional Utilities (D/B/A Central Iowa Water Association) and; therefore, constitutes a direct borrowing.
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year
June 30
2022
2023
2024
2025
2026
2027-2031
2032
Total
Governmental Activities
Principal
$ 274,974
263,230
269,674
276,314
283,154
2,331,015
50,000
$ 3,748,361
Interest
$ 93,958
87,614
81,170
74,530
67,689
198,125
Business -type Activities
Principal Interest
$ 1,034,205 $ 34,017
35,937 2,286
18,644 466
$ 603,086 $ 1,088,786 $ 36,769
0
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2021, was as
follows:
Balance
Beginning
Balance End
Due Within
of Year
Additions
Reductions
of Year
One Year
Governmental activities:
General obligation bonds
$ 41,185,153
$ 25,605,950
$ (26,740,311)
$ 40,050,792
$
3,472,820
Unaccreted premium
840,151
953,857
(63,250)
1,730,758
-
Unamortized discounts
(39,791)
-
3,606
(36,185)
-
Total general obligation bonds
41,985,513
26,559,807
(26,799,955)
41,745,365
3,472,820
Tax increment financing bonds
18,985,000
-
(590,000)
18,395,000
635,000
Unamortized discounts
(159,694)
-
8,872
(150,822)
-
Total tax increment financing bonds
18,825,306
-
(581,128)
18,244,178
635,000
Notes payable
91,860
-
(45,665)
46,195
46,195
Loans payable
3,899,294
-
(150,933)
3,748,361
274,974
Compensated absences
6,016,259
3,683,173
(3,152,842)
6,546,590
425,099
Total governmental activities
$ 70,818,232
$ 30,242,980
$ (30,730,523)
$ 70,330,689
$
4,854,088
Business -type activities:
General obligation bonds
$ 35,479,846
$ 14,935,457
$ (17,628,037)
$ 32,787,266
$
3,057,226
Unaccreted premium
767,318
631,854
(58,689)
1,340,483
-
Unamortized discounts
(26,308)
-
2,734
(23,574)
-
Total general obligation bonds
36,220,856
15,567,311
(17,683,992)
34,104,175
3,057,226
Revenue bonds
32,155,000
-
(340,000)
31,815,000
355,000
Unaccreted premium
600,448
-
(66,359)
534,089
-
Unamortized discounts
(49,181)
-
4,927
(44,254)
-
Total revenue bonds
32,706,267
-
(401,432)
32,304,835
355,000
Notes payable
116,965,647
37,503,894
(39,457,926)
115,011,615
6,195,000
Loans payable
2,152,331
-
(1,063,545)
1,088,786
1,034,205
Compensated absences
718,963
386,523
(334,805)
770,681
67,676
Total business -type activities
$ 188,764,064
$ 53,457,728
$ (58,941,700)
$ 183,280,092
$
10,709,107
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VITI Housing Fund.
M
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30.2021
NOTE 7 — LONG-TERM DEBT (continued)
Legal Debt Margin Calculation.
Estimated actual value
Debt limit - 5% of total actual
valuation
Debt applicable to limit
Legal debt margin
$ 4,785,964,957
239,298,248
(122,682,458)
$ 116,615,790
Dubuque Metropolitan Area Solid Waste Agency
General Obligation Bonds. Dubuque County, Iowa issued a general obligation landfill facilities bond to
provide funds for the acquisition and construction of major capital facilities.
The Dubuque Area Metropolitan Solid Waste Agency will reimburse Dubuque County for interest and
principal payments from operating revenue. These bonds generally are issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. The amount outstanding as
of June 30, 2021 is as follows:
Purpose
Landfill Facility
Landfill Facility
Date of Issue
12/30/2014
12/28/2016
Interest
Maturity Date Rate
06/01/16-06/01/34 2.0-4.0 %
06/01/17-06/01/36 3.0
Amount Amount
Originally Outstanding
Issued End of Year
$ 4,500,000 $ 3,330,000
5,100,000 4,165,000
$ 9,600,000 $ 7,495,000
Annual debt service requirements to maturity of the general obligation bond is as follows:
Fiscal Year June 30
2022
2023
2024
2025
2026
2027-2031
2032-2036
Total
Principal
$ 435,000
450,000
465,000
475,000
490,000
2,685,000
2,495,000
$ 7,495,000
Interest
$ 225,609
210,459
198,609
186,065
172,965
643,298
214,710
$ 1,851,715
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long -Term Liabilities. Long term liability activity for the year ended June 30, 2021 is as
follows:
Balance
Beginning
of Year Additions
General obligation bond $ 7,920,000 $
Unaccreted premium 204,672 _
Total general obligation bond $ 8,124,672 $
Balance Due Within
Reductions End of Year One Year
$ (425,000) $ 7,495,000 $ 435,000
- (12,857) 191,815 -
$ (437,857) $ 7,686,815 $ 435,000
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 8 — RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters for which the government carries commercial insurance
purchased from independent third parties and participates in a local government risk pool. The City
assumes liability for deductibles and claims in excess of coverage limitations.
The City has established a Health Insurance Reserve Fund for insuring benefits provided to City
employees and covered dependents which is included in the Internal Service Fund Type. Health benefits
were self -insured up to an individual stop -loss amount of $120,000, and an aggregate stop -loss of 125%
of expected claims. Coverage from a private insurance company is maintained for losses in excess of the
stop -loss amount. All claims handling procedures are performed by a third -party claims administrator.
Incurred but not reported claims have been accrued as a liability based upon the claims administrator's
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense.
The City has established a Workers' Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Through May 15, 2020 workers'
compensation benefits were self -insured up to a specific stop -loss amount of $750,000, and an
aggregate -stop loss consistent with statutory limits for 2020. Coverage from a private insurance company
is maintained for losses in excess of the stop -loss amount. As of May 15, 2020 the City changed workers'
compensation coverage providers. Under this new agreement, the City is fully insured for all claims with
the exception of sworn Police Officers and Fire Fighters medical claims. All claims handling procedures
are performed by a third -party claims administrator. Incurred but not reported claims have been accrued
as a liability based upon the claims administrator's estimate. Settled claims have not exceeded
commercial coverage in any of the past three fiscal years. The estimated liability does not include any
allocated or unallocated claims adjustment expense. The City purchases private insurance to include
sworn Police Officers and Fire Fighters medical claims under a self- insured retention of $750,000 for
each accident.
All funds of the City participate in both programs and make payments to the Health Insurance Reserve
Fund and the Workers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior and current year claims. The claims liability of $1,094,417 in the Health Insurance Reserve
Fund and $1,079,779 in the Workers' Compensation Reserve Fund is based on the requirements of
Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims
be reported if information prior to the issuance of the financial statements indicates that it is probable
that a liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the
fiscal years ended June 30, 2021 and 2020, are summarized as follows:
Liabilities at June 30, 2019
Claims and changes in estimates during fiscal year 2020
Claim payments
Liabilities at June 30, 2020
Claims and changes in estimates during fiscal year 2021
Claim payments
Liabilities at June 30, 2021
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
$ 975,946
$ 1,023,090
10,259,919
-
(10,362,276)
(523,533)
873,589
499,557
9,965,588
1,559,917
(9,744,760)
(979,695)
$ 1,094,417 $ 1,079,779
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 8 — RISK MANAGEMENT (continued)
The City is a member in the Iowa Communities Assurance Pool (Pool), as allowed by Chapter 670.7 of
the Code of Iowa. The Pool is a local government risk -sharing pool whose 787 members include various
governmental entities throughout the State of Iowa. The Pool was formed in August 1986 for the purpose
of managing and funding third -party liability claims against its members. The Pool provides coverage and
protection in the following categories: general liability, automobile liability, automobile physical
damage, public officials' liability, police professional liability, property, inland marine, and
boiler/machinery. The City acquires automobile physical damage coverage through the Pool. All other
property, inland marine, and boiler/machinery insurance is acquired through commercial insurance.
There have been no reductions in insurance coverage from prior years.
Each member's annual casualty contributions to the Pool fund current operations and provide capital.
Annual operating contributions are those amounts necessary to fund, on a cash basis, the Pool's general
and administrative expenses, claims, claims expenses, and reinsurance expenses due and payable in the
current year, plus all or any portion of any deficiency in capital. Capital contributions are made during
the first six years of membership and are maintained not to exceed 300 percent of the total current
members' basis rates or to comply with the requirements of any applicable regulatory authority having
jurisdiction over the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual property
operating contributions which are necessary to fund, on a cash basis, the Pool's general and
administrative expenses and reinsurance premiums, all of which are due and payable in the current year,
plus all or any portion of any deficiency in capital. Any year-end operating surplus is transferred to
capital. Deficiencies in operations are offset by transfers from capital and, if insufficient, by the
subsequent year's member contributions. The City has property insurance coverage in addition to the
Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City's annual contributions to the Pool for
the year ended June 30, 2021, were $1,103,211.
The Pool uses reinsurance and excess risk -sharing agreements to reduce its exposure to large losses. The
Pool retains general, automobile, police professional, and public officials' liability risks up to $500,000
per claim. Excess coverage is provided for claims exceeding $500,000 under various reinsurance
agreements. Property and automobile physical damage risks are retained by the Pool up to $250,000 each
occurrence, each location, with excess coverage reinsured on an individual -member basis.
The Pool's Iowa Risk Management Agreement with its members provides that in the event a casualty
claim, property loss or series of claims exceeds the amount of risk -sharing protection provided by the
member's risk -sharing certificate, or in the event that a series of casualty claims exhausts total members'
equity plus any reinsurance and any excess risk -sharing recoveries, then payment of such claims shall be
the obligation of the respective individual member. As of June 30, 2021, settled claims have not
exceeded the risk pool or reinsurance company coverage since the Pool's inception.
94
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 8 — RISK MANAGEMENT (continued)
Members agree to continue membership in the Pool through the Iowa Risk Management Agreement for a
period of not less than one full year. After such period, a member who has given 60 days' prior written
notice may withdraw from the Pool. Upon withdrawal, a formula set forth in the Pool's intergovernmental
contract with it's members is applied to determine the amount (if any) to be refunded to the withdrawing
member.
NOTE 9 — COMMITMENTS AND CONTINGENT LIABILITIES
Grants
The City has received financial assistance from numerous federal and state agencies in the form of grants
and entitlements. The disbursement of funds received under these programs generally requires
compliance with terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, liabilities resulting from disallowed claims, if
any, will not have a material effect on the City's financial position as of June 30, 2021.
Litigation
The City Attorney reported that various claims and lawsuits were on file against the City.
The City Attorney has estimated that all potential settlements and lawsuits against the City not covered
by insurance would not materially affect the financial position of the City. The City has authority to levy
additional taxes (outside the regular limit) to cover uninsured judgments against the City.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing
construction completed through June 30, 2021. The City has additional commitments for signed
construction contracts of $10,238,051 as of June 30, 2021. These commitments will be funded by federal
and state grants, cash reserves, and bond proceeds.
Dubuque Metropolitan Area Solid Waste Agency has recognized a liability for only that portion of
construction contracts representing construction completed through June 30, 2021. DMASWA has an
additional commitments for a signed construction contracts of $9,226 as of June 30, 2021. These
commitments will be partially funded by bond proceeds.
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB)
Plan Description - The City operates a single -employer retiree benefit plan which provides
postemployment benefits for eligible participants enrolled in the City -sponsored plans, which include the
employees of the Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does
not issue a stand-alone financial report. No assets are accumulated in a trust that meets the criteria in
paragraph 4 of GASB Statement 75. The benefits are provided in the form of:
An implicit rate subsidy where pre-65 retirees receive health insurance coverage by paying a combined
retiree/active rate for the self -insured medical and prescription drug plan.
An explicit rate subsidy where the City pays the full cost of a $1,000 policy in the fully -insured life
insurance plan.
To be eligible for the health insurance coverage, retirees must be at least 55 years old, have completed 4
years of service, and be vested with either the Iowa Public Employee's Retirement System (IPERS) or the
Municipal Fire and Police Retirement System of Iowa (MFPRSI). In addition to the health eligibility
coverage requirements, one must have belonged to a bargaining group to be eligible for life insurance
benefits. There are approximately 544 active and 43 retired members in the plan, as of most recent
actuarial valuation report.
Funding Policy - The contribution requirements of plan members are established and may be amended by
the City. The City currently finances the retiree benefit plan on a pay-as-you-go basis.
Total OPEB Liability - The City's OPEB liability of $6,311,802 was measured as of June 30, 2021, and
was determined by an actuarial valuation as of June 30, 2020. The City's proportion is based on the
number of employees in the plan. The City's proportion was 97.94% as of June 30, 2021.
Changes in the Total OPEB Liability
Total OPEB Liability beginning of year
Changes for the year:
Service cost
Interest
Other changes
Changes in experience
Changes in assumptions
Benefit payments
Net Changes
Total OPEB Liability end of year
Total OPEB Liability
$ 5,882,693
303,146
152,598
(11,228)
16
254,038
(269,461)
429,109
$ 6,311,802
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Methods and Assumptions - The total OPEB liability in the June 30, 2021 actuarial valuation
was determined using the following actuarial assumptions and the entry age normal actuarial cost
method, applied to all periods included in the measurement.
Rate of inflation
effective June 30, 2020
Rates of salary increase
effective June 30, 2020
Discount rate
effective June 30, 2021
Healthcare cost trend rate
effective June 30, 2020
3.00% per annum
4.00% per annum,
including inflation
2.18% compounded annually,
including inflation
6.50% initial rate decreasing by 0.14%
annually to an ultimate rate of 4.50%
Discount Rate - The discount rate used to measure the total OPEB liability was 2.18% which reflects the
index rate for 20-year tax-exempt general obligation municipal bonds with an average rating of AA/Aa or
higher as of the measurement date.
Mortality rates are from the PubG.H-2010 Mortality Table. Annual retirement and termination
probabilities were developed consistent with the City's experience and the IPERS and MFPRSI
retirement patterns.
Projected claim costs of the medical plan are $12,299-$17,508 per year for retirees depending on the age
of retiree. The actuarial assumptions used in the June 30, 2021 roll forward valuation were based on the
results of actual experience dates study with dates corresponding to those listed above.
Sensitivity of the City's Total OPEB Liability to Changes in the Discount Rate - The following presents
the total OPEB Liability of the City, as well as what the City's total OPEB liability would be if it were
calculated using a discount rate that is 1% lower (1.18%) or 1% higher (3.18%) than the current discount
rate.
1% Decrease (1.18%) Discount Rate (2.18%) 1% Increase (3.18%)
Total OPEB Liability $ 6,826,382 $ 6,311,802 $ 5,831,250
Sensitivity of the City's Total OPEB Liability to Changes in the Healthcare Cost Trend Rates - The
following presents the total OPEB Liability of the City, as well as what the City's total OPEB liability
would be if it were calculated using healthcare cost trend rates that are 1% lower (5.50%) or 1% higher
(7.50%) than the current healthcare cost trend rates.
1% Decrease (5.50%) Healthcare Cost Trend 1% Increase (7.50%)
Rate (6.50%)
Total OPEB Liability $ 5,603,385 $ 6,311,802 $ 7,154,043
97
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30,
2021 the City recognized OPEB expense of $480,207. At June 30, 2021 the City reported deferred
outflows of resources related to OPEB from the following sources:
Changes in Experience $
Changes in Assumptions
Deferred Outflows of Resources Deferred Inflows of Resources
453,163
$ 194,248
103,827
453,163 $
The amount reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized as OPEB expense as follows:
Year Ending June 30 Deferred Outflows of Resources Deferred Inflows of Resources
2022 $
60,974 $
(36,500)
2023
60,974
(36,500)
2024
60,974
(36,500)
2025
60,974
(36,500)
2026
60,974
(36,500)
Thereafter
147,293
(115,575)
$
452,163 $
(298,075)
Dubuque Metropolitan Area Solid Waste Agency Specific (DMASWA) OPEB Disclosures
Total OPEB Liability- DMASWA OPEB liability of $132,488 was measured as of June 30, 2021, and
was determined by an actuarial valuation as of June 30, 2020. The Agency's portion is based on the
number of employees in the plan. The Agency's portion was 2.06% as of June 30, 2021.
Total OPEB
Liability
Total OPEB Liability beginning of year
$ 112,052
Changes for the year:
Service Cost
6,363
Interest
3,203
Other Changes
11,194
Changes in assumptions
5,332
Benefit payments
(5,656)
Net Changes
20,436
Total OPEB Liability end of year
$ 132,488
298,075
m
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Sensitivity of the City's Total OPEB Liability to Changes in the Discount Rate- The following presents
the total OPEB Liability of the DMASWA, as well as what the DMASWA's total OPEB liability would
be if it were calculated using a discount rate that is 1 % lower (1.18%) or 1 % higher (3.18%) than the
current discount rate.
Total OPEB Liability
1% Decrease (1.18%) Discount Rate (2.18%) 1% Increase (3.18%)
143,288 $ 132,488 $ 122,400
Sensitivity of the DMASWA's Total OPEB Liability to Changes in the Healthcare Cost Trend Rates- The
following presents the total OPEB Liability of the DMASWA, as well as what the DMASWA's total
OPEB liability would be if it were calculated using healthcare cost trend rates that are 1% lower (5.50%)
or 1% higher (7.50%) than the current healthcare cost trend rates.
1% Decrease (5.50%) Healthcare Cost Trend 1% Increase (7.50%)
Rate (6.50%)
Total OPEB Liability $ 117,617 $ 132,488 $ 150,166
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30,
2021 the DMASWA recognized OPEB expense of $10,080. At June 30, 2021 the DMASWA reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Changes in Experience
Changes in Assumptions
Deferred Outflows of Resources Deferred Inflows of Resources
9,491
$ (4,077)
(2,179)
9,491 $
(6,256)
The amount reported as deferred outflows of resources related to OPEB will be recognized as OPEB
expense as follows:
Year Ending
Deferred Outflows of
June 30 Resources
Deferred Inflows of
Resources
2022
$ 1,280
$ (766)
2023
1,280
(766)
2024
1,280
(766)
2025
1,280
(766)
2026
1,280
(766)
Thereafter
3,091
(2,426)
$ 9,491
$ (6,256)
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS
Aggregate Pension Expense
The primary government participates in two public pension systems, Iowa Public Employees' Retirement
System (IPERS) and Municipal Fire and Police Retirement System of Iowa (MFPRSI). The component
unit DMASWA participates in IPERS only. The following secitons outline the pension related
disclosures for each pension of both entities. The aggregate amount of recognized pension expense for
the period associated with the net pension liability for all plans is $10,017,010 for the primary
government. Other aggregate amounts related to pension are separately displayed in the financial
statements.
Iowa Public Employees Retirement System IPERS
Plan Description — IPERS membership is mandatory for employees of the City, except for those covered
by another retirement system. Employees of the City are provided with pensions through a cost -sharing
multiple employer defined benefit pension plan administered by Iowa Public Employees' Retirement
System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at
7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.ipers.org.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits — A Regular member may retire at normal retirement age and receive monthly benefits
without an early -retirement reduction. Normal retirement age is age 65, anytime after reaching age 62
with 20 or more years of covered employment, or when the member's years of service plus the member's
age at the last birthday equals or exceeds 88, whichever comes first. These qualifications must be met on
the member's first month of entitlement to benefits. Members cannot begin receiving retirement benefits
before age 55. The formula used to calculate a Regular member's monthly IPERS benefit includes:
A multiplier based on years of service.
The member's highest five-year average salary, except members with service before June 30,
2012 will use the highest three-year average salary as of that date if greater than the highest
five-year average salary.
If a member retires before normal retirement age, the member's monthly retirement benefit will be
permanently reduced by an early -retirement reduction. The early -retirement reduction is calculated
differently for service earned before and after July 1, 2012. For service earned before July 1, 2012, the
reduction is 0.25% for each month that the member receives benefits before the member's earliest normal
retirement age. For service earned starting July 1, 2012, the reduction is 0.50% for each month that the
member receives benefits before age 65.
Generally, once a member selects a benefit option, a monthly benefit is calculated and remains the same
for the rest of the member's lifetime. However, to combat the effects of inflation, retirees who began
receiving benefits prior to July 1990 receive a guaranteed dividend with the regular November benefit
payments.
100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Disability and Death Benefits - A vested member who is awarded federal Social Security disability or
Railroad Retirement disability benefits is eligible to claim IPERS benefits regardless of age. Disability
benefits are not reduced for early retirement. If a member dies before retirement, the member's
beneficiary will receive a lifetime annuity or a lump -sum payment equal to the present actuarial value of
the member's accrued benefit or calculated with a set formula, whichever is greater. When a member dies
after retirement, death benefits depend on the benefit option the member selected at retirement.
Contributions - Contribution rates are established by IPERS following the annual actuarial valuation,
which applies IPERS' Contribution Rate Funding Policy and Actuarial Amortization Method. State
statute limits the amount rates can increase or decrease each year to 1 percentage point. IPERS
Contribution Rate Funding Policy requires that the actuarial contribution rate be determined using the
"entry age normal" actuarial cost method and the actuarial assumptions and methods approved by the
IPERS Investment Board. The actuarial contribution rate covers normal cost plus the unfunded actuarial
liability payment based on a 30-year amortization period. The payment to amortize the unfunded
actuarial liability is determined as a level percentage of payroll, based on the Actuarial Amortization
Method adopted by the Investment Board.
In fiscal year 2021, pursuant to the required rate, Regular members contributed 6.29% of covered payroll
and the City contributed 9.44% for a total rate of 15.73%.
The City's total contributions to IPERS for the year ended June 30, 2021 were $2,406,797. The Dubuque
Metropolitan Area Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2021
were $61,160.
City Specific IPERS Disclosures
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2021, the City reported a liability of $23,062,814 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2020, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions to IPERS relative to the contributions of all IPERS participating employers.
At June 30, 2020, the City's collective proportion was .330614% which was a decrease of-0.001321%
from its proportion measured as of June 30, 2019.
101
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2021, the City recognized pension expense of $3,304,542. At June 30, 2021,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Differences between expected and
actual experience
Changes of assumptions
Net difference between projected and actual
earnings on IPERS' investments
Changes in proportion and differences between
City's contributions and City's proportionate share
of contributions
City contributions subsequent to the
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 25,478 $
1,183,806
1,296,497
2,406,797
546,648
341,476
$ 4,912,578 $ 888,124
$2,406,797 reported as deferred outflows of resources related to pensions resulting from the City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30
Total
2022
$ 145,480
2023
361,643
2024
400,917
2025
723,697
2026
(14,080)
$ 1,617,657
Sensitivitv of the Citv's Proportionate Share of the Net Pension Liabilitv to Chances in the Discount
Rate- The following presents the City's proportionate share of the net pension liability calculated using
the discount rate of 7.00%, as well as what the City's proportionate share of the net pension liability
would be if it were calculated using a discount rate that is 1.00% lower (6.00%) or 1.00% higher (8.00%)
than the current rate.
102
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
1 % Discount 1 %
Decrease Rate Increase
(6.0)% (7.0)% (8.0)%
City's proportionate share of
the net pension liability: $ 38,455,297 $ 23,062,814 $ 10,156,453
Dubuque Metropolitan Area Sold Waste Agency Specific (DMASWA) IPERS Disclosures
Net Pension Liabilities. Pension Expense. and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2021, the DMASWA reported a liability of $586,066 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2020, and the total pension liability used to calculate the net pension liability was determined by an
actuarial valuation as of that date. The DMASWA's proportion of the net pension liability was based on
the DMASWA's share of contributions to the pension plan relative to the contributions of all IPERS
participating employers. At June 30, 2020, the DMASWA's collective proportion was 0.008401% which
was an increase of 0.00001% from its proportion measured as of June 30, 2019.
For the year ended June 30, 2021, the DMASWA recognized pension expense of $83,974. At June 30,
2021, the DMASWA reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Deferred Outflows Deferred Inflows
of Resources of Resources
Differences between expected and
actual experience $ 647 $ 13,891
Changes of assumptions 30,083
Net difference between projected and actual 32,946
earnings on IPERS' investments
Net changes in proportion and differences between
Agency's contributions and Agency's proportionate
share
of contributions - 8,680
Agency contributions subsequent to the
measurement date 61,160 -
Total
$ 124,836 $ 22,571
103
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE II —EMPLOYEE PENSION PLANS (continued)
$61,160 reported as deferred outflows of resources related to pensions resulting from the Agency
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2022. Other amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30 Total
2022
$ 3,697
2023
9,190
2024
10,188
2025
18,390
2026
(361)
$ 41,104
Sensitivitv of the Aeencv's Proportionate Share of the Net Pension Liabilitv to Chances in the Discount
Rate - The following presents the Agency's proportionate share of the net pension liability calculated
using the discount rate of 7.00%, as well as what the Agency's proportionate share of the net pension
liability would be if it were calculated using a discount rate that is 1% lower (6.00%) or 1% higher
(8.00%) than the current rate.
1%
Discount
1%
Decrease
Rate
Increase
(6.00)%
(7.00)%
(8.00)%
Agency's proportionate share of
the net pension liability: $ 977,215 $ 586,066 $ 258,093
There were no non -employer contributing entities at IPERS.
Actuarial Assumptions - The total pension liability in the June 30, 2020, actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation
(effective June 30, 2017)
Rates of salary increase
(effective June 30, 2017)
Long-term Investment rate of return
(effective June 30, 2017)
Wage Growth
(effective June 30, 2017)
2.60% per annum
3.25 to 16.25% average, including inflation.
Rates vary by membership group.
7.00% , compounded annually, net of investment
expense, including inflation.
3.25% per annum based on 2.60% inflation
and 0.65% real wage inflation
104
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE II —EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an economic
assumption study dated March 24, 2017 and a demographic assumption study dated June 28, 2018.
Mortality rates used in the 2019 valuation were based on the RP-2014 Employee and Healthy Annuitant
Tables with MP-2017 generational adjustments.
The long-term expected rate of return on IPERS' was determined using a building-block method in which
best -estimate ranges of expected future real rates (expected returns, net of pension plan investment
expense and inflation) are developed for each major asset class. These ranges are combined to produce
the long-term expected rate of return by weighting the expected future real rates of return by the target
asset allocation percentage and by adding expected inflation. The target allocation and best estimates of
arithmetic real rates of return for each major asset class are summarized in the following table:
Asset
Long -Term Expected
Asset Class
Allocation
Real Rate of Return
Domestic equity
22 %
4.43%
International equity
17.5
5.15
Global smart beta equity
6
4.87
Core plus fixed income
28
(0.29)
Public credit
4.0
2.29
Cash
1.0
(0.78)
Private equity
11
6.54
Private real assets
7.5
4.48
Private credit
3
3.11
Total
100 %
Discount Rate - The discount rate used to measure the total pension liability was 7.00%. The projection
of cash flows used to determine the discount rate assumed that contributions from employees and
employers will be made at the contractually required rates, which are set by the Contribution Rate
Funding Policy and derived from the actuarial valuation. Based on those assumptions, the IPERS'
fiduciary net position was projected to be available to make all projected future benefit payments of
current active and inactive employees. Therefore, actuarial asumed investment return was applied to all
periods of projected benefit payments to determine the total pension liability.
IPERS' Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued IPERS financial report which is available on IPERS' website at
www.ipers.org.
Payables to IPERS - At June 30, 2021, the City reported payables to the defined benefit pension plan of
$118,564 for legally required employer contributions. There were no legally required employee
contributions which had been withheld from employee wages but not yet remitted to IPERS.
105
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Municipal Fire and Police Retirement System of Iowa (MFPRSI)
Plan Description — MFPRSI membership is mandatory for fire fighters and police officers covered by the
provisions of Chapter 411 of the Code of Iowa. Employees of the City are provided with pensions
through a cost -sharing multiple employer defined benefit pension plan administered by MFPRSI.
MFPRSI issues a stand-alone financial report which is available to the public by mail at 7155 Lake
Drive, Suite #201, West Des Moines, Iowa 50266 or at www.mfprsi.org.
MFPRSI benefits are established under Chapter 411 of the Code of Iowa and the administrative rules
thereunder. Chapter 411 of the Code of Iowa and the administrative rules are the official plan documents.
The following brief description is provided for general informational purposes only. Refer to the plan
documents for more information.
Pension Benefits - Members with 4 or more years of service are entitled to pension benefits beginning at
age 55. Full service retirement benefits are granted to members with 22 years of service, while partial
benefits are available to those members with 4 to 22 years of service based on the ratio of years
completed to years required (i.e., 22 years). Members with less than 4 years of service are entitled to a
refund of their contribution only, with interest, for the period of employment.
Benefits are calculated based upon the member's highest 3 years of compensation. The average of these 3
years becomes the member's average final compensation. The base benefit is 66% of the member's
average final compensation. Members who perform more than 22 years of service receive an additional
2% of the member's average final compensation for each additional year of service, up to a maximum of
8 years. Survivor benefits are available to the beneficiary of a retired member according to the provisions
of the benefit option chosen, plus an additional benefit for each child. Survivor benefits are subject to a
minimum benefit for those members who chose the basic benefit with a 50% surviving spouse benefit.
Active members, at least 55 years of age, with 22 or more years of service have the option to participate
in the Deferred Retirement Option Program (DROP). The DROP is an arrangement whereby a member
who is otherwise eligible to retire and commence benefits opts to continue to work. A member can elect a
3, 4, or 5 year DROP period. By electing to participate in DROP, the member is signing a contract
indicating the member will retire at the end of the selected DROP period. During the DROP period the
member's retirement benefit is frozen and a DROP benefit is credited to a DROP account established for
the member. Assuming the member completes the DROP period, the DROP benefit is equal to 52% of
the member's retirement benefit at the member's earliest date eligible and 100% if the member delays
enrollment for 24 months. At the member's actual date of retirement, the member's DROP account will
be distributed to the member in the form of a lump sum or rollover to an eligible plan.
Disability and Death Benefits — Disability benefits may be either accidental or ordinary. Accidental
disability is defined as a permanent disability incurred in the line of duty, with benefits equivalent to the
greater of 60% of the member's average final compensation or the member's service retirement benefit
calculation amount. Ordinary disability occurs outside the call of duty and pays benefits equivalent to the
greater of 50% of the member's average final compensation for those with 5 or more years of service or
the member's service retirement benefit calculation amount and 25% of average final compensation for
those with less than 5 years of service.
106
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Death benefits are similar to disability benefits. Benefits for accidental death are 50% of the average final
compensation of the member plus an additional amount for each child, or the provisions for ordinary
death. Ordinary death benefits consist of a pension equal to 40% of the average final compensation of the
member plus an additional amount for each child, or a lump -sum distribution to the designated
beneficiary equal to 50% of the previous year's earnable compensation of the member or equal to the
amount of the member's total contributions plus interest.
Benefits are increased (escalated) annually in accordance with Chapter 411.6 of the Code of Iowa which
states a standard formula for the increases.
The surviving spouse or dependents of an active member who dies due to a traumatic personal injury
incurred in the line of duty receives a $100,000 lump -sum payment.
Contributions - Member contribution rates are set by state statute. In accordance with Chapter 411 of the
Code of Iowa, the contribution rate was 9.40% of earnable compensation for the year ended June 30,
2021.
Employer contribution rates are based upon an actuarially determined normal contribution rate and set by
state statute. The required actuarially determined contributions are calculated on the basis of the entry
age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of
Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan
less current plan assets, with such total divided by 1 % of the actuarially determined present value of
prospective future compensation of all members, further reduced by member contributions and state
appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of
earnable compensation. The contribution rate was 25.31% for the year ended June 30, 2021.
The City's contributions to MFPRSI for the year ended June 30, 2021 was $3,649,160.
If approved by the state legislature, state appropriation may further reduce the employer's contribution
rate, but not below the minimum statutory contribution rate of 17.00% of earnable compensation. The
State of Iowa therefore is considered to be a nonemployer contributing entity in accordance with the
provisions of the Governmental Accounting Standards Board Statement No. 67 — Financial Reporting for
Pension Plans, (GASB 67).
There were no state appropriations to MFPRSI during the fiscal year ended June 30, 2021.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2021, the City reported a liability of $37,736,544 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2020, and the total pension liability used to calculate the new pension liability was determined by an
107
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating
employers. At June 30, 2020, the City's proportion was 4.731260% which was an increase of 0.039394%
from it proportions measured as of June 30, 2019.
For the year ended June 30, 2021, the City recognized pension expense of $6,712,468. At June 30, 2021,
the City reported deferred outflows of resources and deferred inflows of resources related to pensions
from the following sources:
Net difference between expected and
actual experience
Changes of assumptions
Net difference between projected and actual
earnings on pension plan investments
Changes in proportion and differences between
City contributions and proportionate share
of contributions
City contributions subsequent to the
measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 1,037,549 $ 204,987
934,778 45,023
5,551,492 -
357,816 792,185
3,649,461 -
$ 11,531,096 $ 1,042,195
$3,649,461 is reported as deferred outflows of resources related to pensions resulting from City
contributions subsequent to the measurement date will be recognized as a reduction of the net pension
liability in the year ended June 30, 2022. Amounts reported as deferred outflows of resources and
deferred inflows of resources related to pensions will be recognized in pension expense as follows:
Year
Ended
June 30
Total
2022
$ 1,508,484
2023
2,101,755
2024
1,898,852
2025
1,305,470
2026
24,879
$ 6,839,440
108
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions - The total pension liability in the June 30, 2020 actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation
Rates of salary increase
Investment rate of return
3.00% per annum
3.75% to 15.11% including inflation
7.50%, net of pension plan investment expense,
including inflation
The actuarial assumptions used in the June 30, 2020 valuation were based on the results of an actuarial
experience study for the period from July 1, 2007 to June 30, 2017.
Mortality rates were based on the RP-2014 Blue Collar Healthy Annuitant Table with males set -forward
zero years, females set -forward two years and disabled individuals set -forward three years (male only
rates), with generational projection of future mortality improvement with 50% of Scale BB beginning
2017.
The long-term expected rate of return on MFPRSI investments was determined using a building-block
method in which best -estimate ranges of expected future real rates (i.e., expected returns, net of
investment expense and inflation) are developed for each major asset class. These ranges are combined
to produce the long-term expected rate of return by weighting the expected future real rates of return by
the target asset allocation percentage and by adding expected inflation. The best estimates of geometric
real rates of return for each major asset class are summarized in the following table:
Asset Class
Long -Term Expected
Real Rate of Return
Large Cap
7.5%
Small Cap
8.1
International Large Cap
7.2
Emerging Markets
7.9
Global Infrastructure
7.5
Private Non -Core Real Estate
11.5
Private Credit
6.4
Private Equity
10.8
Core Plus Fixed Income
4.0
Private Core Real Estate
7.2
109
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Discount Rate - The discount rate used to measure the total pension liability was 7.50%. The projection
of cash flows used to determine the discount rate assumed employee contributions will be made at the
contractually required rates, actuarially determined. Based on those assumptions, MFPRSI fiduciary net
position was projected to be available to make all projected future benefit payments to current active and
inactive employees. Therefore, the long-term expected rate of return on MFPRSI investments was
applied to all periods of projected benefit payments to determine the total pension liability.
Sensitivity of Ci . 's Proportionate Share of the Net Pension Liability to Changes in the Discount Rate -
The following presents the City's proportionate share of the net pension liability calculated using the
discount rate of 7.50%, as well as what the city's proportionate share of the net pension liability would
be if it were calculated using a discount rate that is 1.00% lower (6.50%) or 1.00% higher (8.50%) than
the current rate.
1%
Decrease
(6.50)%
City's proportionate share of
the net pension liability: $ 57,880,514
Discount
Rate
(7.50)%
$ 37,736,544
1%
Increase
(8.50)%
$ 21,050,934
MFPRSI Fiduciary Net Position - Detailed information about the pension plan's fiduciary net position is
available in the separately issued MFPRSI financial report which is available on MFPRSI's website at
www.mfprsi.org.
Payables to MFPRSI - At June 30, 2021, City of Dubuque, Iowa reported payables to the defined benefit
pension plan of $185,841 for legally required employer contributions. There were no legally required
employee contributions which had been withheld from employee wages but not yet remitted to MFPRSI.
110
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 12 — LANDFILL CLOSURE AND POST CLOSURE CARE
To comply with federal (40 CFR 258.74) and state regulations (IAC 113.14 (455b)), the Dubuque
Metropolitan Area Solid Waste agency (DMASWA) is required to complete a closure and post -closure plan
and to provide funding necessary to effect that plan, including the proper monitoring and care of the landfill
after closure. Once the landfill is no longer accepting waste and is closed, the owner is responsible for
maintaining the final cover, monitoring ground water and methane gas, and collecting leachate (the liquid
that drains out of waste) for thirty years.
State governments are primarily responsible for implementation and enforcement of those requirements and
have been given flexibility to tailor requirements to accommodate local conditions that exist. A variety of
financial mechanisms can be used to demonstrate compliance with federal and state financial assurance rules.
The Agency utilizes the dedicated fund mechanism, which is funded through the tipping fees it receives.
The Agency files an annual report with the State to provide compliance with its legal requirements of
maintaining a balance per the prescribed formula. Any adjustments to the account are made prior to June 30.
The Agency is required to estimate total landfill closure and post -closure care costs and recognize a portion
of these costs each year based on the percentage of estimated total landfill capacity used that period.
Estimated total costs, for closure and post -closure, would consist of four components: (1) the cost of
equipment and facilities used in post -closure monitoring and care, (2) the cost of final cover (material and
labor), (3) the cost of environmental monitoring of the landfill during the post -closure period and (4) the cost
of any environmental cleanup required after closure. Estimated total cost is based on an engineer's estimate
for these services is required to be updated annually for changes due to inflation or deflation, technology,
and/or changes to applicable laws or regulations.
The Agency's estimated closure and post -closure care expected costs are as follows:
2021
Closure $ 4,036,979
Post -closure care 2,355,000
Totals $ 6,391,979
The total closure and post -closure care costs for the DMASWA has been estimated at approximately
$6,391,979 as of June 30, 2021, and the portion of the liability, that has been recognized is $2,955,149.
This liability represents the cumulative amount reported to date based on the use of 100% of the estimated
capacity of cells 1, 2, 3, 4, 5, 6, 7, 8, and 100% of cell 9 Phase I, 58% of cell 9 Phase II, 54% of cell 9 Phase
III, and 29% of cell 9 Phase IV. The Agency has accumulated resources to fund closure and post -closure
costs; they are included in assets whose use is limited on the balance sheet and total $5,035,848 as of June
30, 2021. The Agency will recognize the remaining estimated cost of closure and post closure care of
$3,436,831 over the estimated remaining life of 17 years as the remaining capacity is filled.
NOTE 13 — LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, airport property (hangars and terminal space), farm land,
parking areas, space for antennas on top of water towers, and concession areas under operating leases. The
most significant lease is the lease of the greyhound racing and gambling facility and related parking area to
the Dubuque Racing Association (DRA). The City's cost of the leased DRA assets total $10,144,771. The
carrying amount of the assets at June 30, 2021 is $5,729,664, with $142,423 of depreciation expense during
the year ended June 30, 2021. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2021, the DRA lease generated $5,072,813 in lease revenue.
111
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 14 — SUBSEQUENT EVENTS
On August 18, 2021, Water Revenue Refunding Bonds, Series 2021C were issued for $3,505,000 with an
average interest rate of 2.00 per annum maturing on June 1, 2030. The Series 2021C Water Revenue
Refunding Bonds were issued at a premium of $181,304 less costs of issuance and underwriter's discount
totaling $77,055. Net proceeds were $3,609,249. The Series 2021C Water Revenue Refunding Bonds were
issued to refund the outstanding portion of the Series 2008D Water Revenue Bonds, which were outstanding
in the aggregate principal amount of $215,000, and to refund the outstanding portion of the Series 2010D
Water Revenue Bonds which were outstanding in the aggregate principal amount of $3,610,000. The Series
2008D and 2010D were called for redemption on August 23, 2021 and are considered defeased. The net
effect of the issuance of the Series 2021C Bonds was a decrease in total debt service of $731,567 in gross
savings, or $703,188 in present value savings.
On December 6, 2021, a public hearing was held on a $900,000 Sewer Revenue Capital Loan Anticipation
Project SRF Note . The loan funds will be used to pay costs of acquisition, construction, reconstruction,
extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System,
including the Granger Creek Interceptor Project and the Force Main Stabilization Project. The Sewer
Revenue Capital Loan Anticipation Project Notes have an interest rate of 0 percent per annum maturing on
January 7, 2025.
On December 6, 2021, a public hearing was held on a $1,570,000 Water Revenue Capital Loan Anticipation
Project SRF Note . The loan funds will be used to pay costs of acquisition, construction, reconstruction,
extending, remodeling, improving, repairing and equipping all or part of the Municipal Water System. The
Water Revenue Capital Loan Anticipation Project Notes have an interest rate of 0 percent per annum
maturing on January 7, 2025.
NOTE 15 — CONTINGENCIES
In March 2020, the COVID-19 outbreak was declared a global pandemic. The disruption to businesses across
a range of industries in the United States continues to evolve. The full impact to local, regional and national
economies, including that of the City of Dubuque, remains uncertain. To date, the outbreak has not created a
material disruption to the operations of the City of Dubuque. However, the extent of the financial impact of
COVID-19 will depend on future developments, including the spread of the virus, duration and timing of the
economic recovery. Due to these uncertainties, management cannot reasonably estimate the potential impact
to the City of Dubuque.
NOTE 16 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) has issued statements not yet implemented by the
City. The statements which might impact the City are as follows:
Statement No. 87, Leases, will be effective for the fiscal year June 30, 2022. The objective of this Statement
is to better meet the information needs of financial statements users by improving accounting and financial
reporting for leases by governments.
Statement No. 89, Accounting for Interest Cost Incurred before the End of a Construction Period, will be
effective for the fiscal year June 30, 2022. The objectives of this Statement are to enhance the relevance and
comparability of information about capital assets and cost of borrowing for a reporting period and to simplify
accounting for interest cost incurred before the end of a construction period.
112
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 16 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
Statement No. 91, Conduit Debt Obligations, will be effective for the fiscal year June 30, 2023. The primary
objectives of this Statement are to provide a single method of reporting conduit debt obligations by issuers
and eliminated diversity in practice associated with (1) commitments extended by issuers, (2) arrangements
associated with conduit debt obligations, and (3) related note disclosures.
Statement No. 92, Omnibus 2020, issued January 2020, will be effective for the City beginning with its fiscal
year ending June 30, 2022 except for the requirements related to the effective date of Statement No. 87 and
Implementation Guide 2019-3, reinsurance recoveries, and terminology used to refer to derivative
instruments effective upon issuance. The objectives of this Statement are to enhance comparability in
accounting and financial reporting and to improve the consistency of authoritative literature by addressing
practice issues that have been identified during implementation and application of certain GASB Statements.
This Statement addresses a variety of topics including leases, intra-entity transfers, assets accumulated for
postemployment benefits, applicability of Statement No. 84 to postemployment benefit arrangements,
measurement of liabilities related to asset retirement obligations in a government acquisition, reporting by
public entity risk pools for amounts that are recoverable from reinsurers or excess insurers, nonrecurring fair
value measurements of assets or liabilities, and terminology to refer to derivative instruments.
Statement No. 93, Replacement of Interbank Offered Rates, issued March 2020, will be effective for the City
beginning with its fiscal year ending June 2022. The objective of this Statement is to address accounting and
financial reporting implications that result from the replacement of an interbank offered rate (IBOR).
Statement No. 94, Public -Private and Public -Public Partnerships and Availability Payment Arrangements,
issued March 2020, will be effective for the City beginning with its fiscal year ending June 30, 2023. The
primary objective of this Statement is to improve financial reporting by addressing issues related to
public -private and public -public partnership arrangements (PPPs).
Statement No. 96, Subscription -Based Information Technology Arrangements, issued in May 2020, will be
effective for fiscal year ending June 30, 2023. This Statement provides guidance on the accounting and
financial reporting for subscription -based information technology arrangements (SBITAs) for government
end users (governments).
Statement No. 97, Certain Component Unit Criteria, and Accounting and Financial Reporting for Internal
Revenue Code Section 457 Deferred Compensation Plans, issued June 2020, will be effective for the fiscal
year ended June 30, 2022. This Statement will result in more consistent financial reporting of defined
contribution pension plans, defined contribution OPEB plans, and other employee benefit plans, while
mitigating the costs associated with reporting those plans.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
113
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2021
NOTE 17 — TAX ABATEMENTS
Governmental Accounting Standards Board Statement No. 77 defines tax abatements as a reduction in tax
revenues that results from an agreement between one or more governments and an individual or entity in
which (a) one or more governments promise to forgo tax revenues to which they are otherwise entitled and
(b) the individual or entity promises to take a specific action after the agreement has been entered into that
contributes to economic development or otherwise benefits the governments or the citizens of those
governments.
City Tax Abatements
The City provides tax abatements for urban renewal and economic development projects with tax increment
financing as provided for in Chapter 15A and 403 of the Code of Iowa. For these types of projects, the City
enters into agreements with developers which require the City, after developers meet the terms of the
agreements, to rebate a portion of the property tax paid by the developers, to pay the developers an economic
development grant or to pay the developers a predetermined dollar amount. No other commitments were
made by the City as a part of these agreements.
For the year ended June 30, 2021, the City abated $2,563,926 of property tax under the urban renewal and
economic development projects.
114
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2021
NOTE 18 — ADOPTION OF NEW STANDARD
As of July 1, 2020 the City adopted GASB Statement No. 84, Fiduciary Activites. The objective of this
Statement is to improve the identification of fiduciary activities for accounting and financial reporting
purposes and how those activities should be reported. The requirements of this Statement will enhance
consistency and comparability by (1) establishing specific criteria for identifying activities that should be
reported as fiduciary activities and (2) clarifying whether and how business -type activities should report their
fiduciary activities. Greater consistency and comparability enhances the value provided by the information
reported infinancial statements for assessing government accountability and stewardship. The impact to the
City resulted in a beginning balance restatement for the custodial funds, from previously reported balance of
$0 to the July 1, 2020 balance of $1,990,337.
NOTE 19 — TRANSFER OF JURISDICTION
In November 2016, the City executed the Transfer of Public Road Jurisdiction Agreement between the City
of Dubuque and the Iowa Department of Transportation. The Iowa Department of Transportation
programmed $115 million to allow for the completion of grading for four lanes, paving 2 lanes, including
bridges and interchanges at both U.S. 20 and U.S. 61/151. The trasnfer of jurisdiction resulted in the
following financial impact:
Transfer of assets to the State
$ (44,122,974)
Transfer of assets from the State
38,788,393
Contribution from the state
5,672,000
Net financial impact to the City
$ 337,419
115
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116
Required Supplementary Information
June 30, 2021
City of Dubuque, Iowa
117
CITY OF DUBUQUE, IOWA
SCHEDULE OF RECEIPTS, DISBURSEMENTS AND CHANGES IN
BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
GOVERNMENTAL AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
RECEIPTS
Property tax
Tax increment financing
Other City tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for fees and service
Special assessments
Miscellaneous
Total Receipts
EXPENDITURES
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business -type activities
Total Expenditures
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES, NET
Actual
$ 26,540,100
11,882,103
19,025,822
1,891,115
16,020,198
54,802,818
39,337,422
127,541
17,284,576
186,911,695
29,069,881
10,967,732
975,605
10,587,593
14,313,189
10,207,749
32,896,869
23,822,123
65,702,183
198,542,924
(11,631,229)
Budgeted Amounts Final to Actual
Original Final Variance
$ 25,460,125
12,012,920
19,082,662
2,050,744
15,630,983
43,327,569
46,303,119
360,000
8,670,253
172,898,375
30,957,805
13,839,242
1,020,271
13,212,220
14,568,903
10,593,735
10,984,416
41,074,054
61,896,519
198,147,165
(25,248,790)
$ 25,460,125
12,012,920
19,082,662
2,165,445
15,669,201
104,104,242
46,068,089
360,000
17,991,277
242,913,961
31,739,650
15,095,981
1,175,185
14,771,836
15,471,676
11,486,441
33,135,826
87,144,718
98,199,521
308,220,834
(65,306,873)
$ 1,079,975
(130,817)
(56,840)
(274,330)
350,997
(49,301,424)
(6,730,667)
(232,459)
(706,701)
(56,002,266)
2,669,769
4,128,249
199,580
4,184,243
1,158,487
1,278,692
238,957
63,322,595
32,497,338
109,677,910
53,675,644
53,711,619 15,886,613 59,114,542 (5,402,923)
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES 42,080,390
(9,362,177) (6,192,331) 48,272,721
BALANCE, BEGINNING OF YEAR 80,471,280 68,889,139 68,889,139
BALANCE, ENDING OF YEAR $ 122,551,670 $ 59,526,962 $ 62,696,808 $ 48,272,721
See Notes to Required Supplementary Information.
118
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2021
The budgetary comparison is presented as Required Supplementary Information in accordance with
Governmental Accounting Standards Board Statement No. 41 for governments with significant budgetary
perspective differences resulting from not being able to present budgetary comparisons for the General
Fund and each major Special Revenue Fund.
The Code of Iowa requires the adoption of an annual budget by the City Council on or before March 31
of each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control (the level on which expenditures may not legally exceed
appropriations) is the function level for the City as a whole, rather than at the fund or fund type level.
The internal service fund or custodial 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, 2021, was amended two times during the year to allow the
City to increase function expenditures by $110,073,669 primarily for the carry -forward of unfinished
capital improvement projects. During the year ended June 30, 2021, no functional expenses exceeded the
budgeted amount.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Governmental
Enterprise
Modified
Funds
Funds
Budgetary
Accrual
Accrual/Accrual
Modified
Accrual
Basis
Adjustments
Basis
Accrual Basis
Basis
Total
Receipts/Revenue
$ 186,911,695
$ (18,394,333)
$ 168,517,362
$ 124,568,276
$ 43,949,086
$ 168,517,362
Expenditures/Expenses
198,542,924
(35,223,122)
163,319,802
124,989,170
38,330,632
163,319,802
Deficiency of Receipts/Revenue
Under Expenditures/Expenses
(11,631,229)
16,828,789
5,197,560
(420,894)
5,618,454
5,197,560
Other Financing Sources
53,711,619
(11,912,948)
41,798,671
22,205,594
19,593,077
41,798,671
Net
42,080,390
4,915,841
46,996,231
21,784,700
25,211,531
46,996,231
Balance, Beginning
80,471,280
193,198,330
273,669,610
61,287,244
212,382,366
273,669,610
Balance, Ending
$ 122,551,670
$ 198,114,171
$ 320,665,841
$ 83,071,944
$ 237,593,897
$ 320,665,841
119
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
LAST SEVEN FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability (asset) 0.33061% 0.33194% 0.33329% 0.33490% 0.34275% 0.35135% 0.37035%
City's proportionate share of the net pension
$ 23,063 $
19,350 $
21,091 $
22,309 $
21,570 $
17,358 $
14,688
liability
City's covered payroll
$ 26,048 $
25,423 $
25,024 $
24,961 $
24,597 $
24,039 $
24,210
City's proportionate share of the net pension
liability
as a percentage of its covered payroll
88.54%
76.11%
84.28%
89.38%
87.69%
72.21%
60.67%
Plan fiduciary net position as a percentage of the
82.90%
85.45%
83.62%
82.21%
81.82%
85.19%
87.61%
total pension liability
*In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal
year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the
City will present information for those years for which information is available.
120
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
2021
2020
2019
2018
2017
2016
2015
2014
2013
2012
Statutorily required contribution $ 2,407
$ 2,460
$ 2,403
$ 2,235
2,229
2,196
2,151
2,164
2,022
2,022
Contributions in relation to the
statutorily required contribution (2,407)
(2,460)
(2,403)
(2,235)
(2,229)
(2,196)
(2,151)
(2,164)
(2,022)
(2,022)
Contribution deficiency (excess) $ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
City's covered payroll $ 25,496
$ 26,048
$ 25,423
$ 25,024
$ 24,961
$ 24,597
$ 24,039
$ 24,210
$ 23,321
$ 23,676
Contributions as a percentage of
covered payroll 9.44%
9.44%
9.45%
8.93%
8.93%
8.93%
8.95%
8.94%
8.67%
8.54%
121
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30, 2021
Changes of benefit terms:
Thee are no significant changes in benefit terms.
Changes of assumption:
The 2018 valuation implemented the following refinements as a result of a demographic assumption
study dated June 28, 2018:
• Changed mortality assumptions to the RP-2014 mortality tables with mortality
improvements modeled using Scale MP-2017.
• Adjusted retirement rates
• Lowered disability rates
• Adjusted the probability of a vested Regular member electing to receive a deferred
benefit.
• Adjusted the merit component of the salary increase assumption.
The 2017 valuation implemented the following refinements as a result of an experience study dated
March 24, 2017:
• Decreased the inflation assumption from 3.00% to 2.60%.
• Decreased the assumed rate of interest on member accounts from 3.75% to 3.50% per
year.
• Decreased the discount rate from 7.50% to 7.00%.
• Decreased the wage growth assumption from 4.00% to 3.25%.
• Decreased the payroll growth assumption from 4.00% to 3.25%.
The 2014 valuation implemented the following refinements as a result of a quadrennial experience study:
• Decreased the inflation assumption from 3.25% to 3.00%.
• Decreased the assumed rate of interest on member accounts from 4.00% to 3.75% per
year.
• Adjusted male mortality rates for retirees in the Regular membership group.
• Reduced retirement rates for sheriffs and deputies between the ages of 55 and 64.
• Moved from an open 30-year amortization period to a closed 30-year amortization period
for the UAL (unfunded actuarial liability) beginning June 30, 2014. Each year thereafter,
changes in the UAL from plan experience will be amortized on a separate closed 20-year
period.
122
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST SEVEN FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability (asset)
City's proportionate share of the net pension liability
City's covered payroll
City's proportionate share of the net pension liability
as a percentage of its covered payroll
Plan fiduciary net position as a percentage of the
total pension liability
4.7313% 4.6919% 4.8639% 4.7840% 4.9533% 4.9854% 5.0788%
$ 37,737 $ 30,775 $ 28,960 $ 28,062 $ 30,971 $ 23,423 $ 18,410
$ 14,879 $ 14,203 $ 14,118 $ 13,552 $ 13,423 $ 13,052 $ 12,968
253.63% 216.68% 205.13% 207.07% 230.73% 179.46% 141.96%
76.47% 79.94% 81.07% 80.60% 78.20% 83.04% 86.27%
*In accordance with GASB Statement No. 68, the amounts presented for each fiscal year were determined as of June 30 of the preceding fiscal
year.
Note: GASB Statement No. 68 requires ten years of information to be presented in this table. However, until a full 10-year trend is compiled, the
City will present information for those years for which information is available.
123
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
Statutorily required contribution
$ 3,649
$ 3,632
$ 3,696
$ 3,626
$ 3,513
$ 3,727
$ 3,969
$ 3,906
$ 3,310
$ 3,177
Contributions in relation to the
statutorily required contribution
(3,649)
(3,632)
(3,696)
(3,626)
(3,513)
(3,727)
(3,969)
(3,906)
(3,310)
(3,177)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
City's covered payroll
$ 14,418
$ 14,879
$ 14,203
$ 14,118
$ 13,552
$ 13,423
$ 13,052
$ 12,968
$ 12,672
$ 12,831
Contributions as a percentage of
covered payroll
25.31%
24.41%
26.02%
25.68%
25.92%
27.77%
30.41%
30.12%
26.12%
24.76%
124
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30, 2021
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions
The 2018 valuation changed postretirement mortality rates were based on the RP-2014 Blue Collor
Healthy Annuitant Table with males set -forward zero years, females set -forward two years and disabled
individuals set -forward three years (male only rates), with generational projection of future mortality
improvement with 50% of Scale BB beginning in 2017.
The 2017 valuation added five years projection of future mortality improvement with Scale BB.
The 2016 valuation changed postretirement mortality rates to the RP-2000 Blue Collar Combined
Healthy Mortality Table with males set -back two years, females set -forward one year and disabled
individuals set -forward one year (male only rates), with no projection of future mortality improvement.
The 2015 valuation phased in the 1994 Group Annuity Mortality Table for post retirement mortality.
This resulted in a weighting of 1/12 of the 1971 Group Annuity Mortality Table and 11/12 of the 1994
Group Annuity Mortality Table.
The 2014 valuation phased in the 1994 Group Annuity Mortality Table for post retirement mortality.
This resulted in a weighting of 2/12 of the 1971 Group Annuity Mortality Table and 10/12 of the 1994
Group Annuity Mortality Table.
125
CITY OF DUBUQUE, IOWA
SCHEDULE OF CHANGES IN
TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
LAST FOUR FISCAL YEARS
Service Cost
Interest Cost
Changes in assumptions
Changes in experience
Other Changes
Benefit payments
Net change in total OPEB Liability
Total OPEB liability beginning of year
Total OPEB liability end of year
Covered -employee payroll
Total OPEB liability as a percentage
of covered -employee payroll
2021
2020
2019
2018
$ 303,146 $
288,187 $
296,597 $
277,469
152,598
165,496
172,576
172,219
254,038
(19,982)
85,951
138,371
13
(242,263)
-
-
(11,228)
(49,950)
2,582
58,589
(269,461)
(380,158)
(452,573)
(474,856)
429,106
(238,670)
105,133
171,792
5,882,696
6,121,366
6,016,233
5,844,441
$ 6,311,802 $
5,882,696 $
6,121,366 $
6,016,233
$ 41,593,187 $ 34,543,167 $ 39,626,000 $ 39,782,000
15.18% 17.03% 15.45% 15.12%
Notes to Schedule of Changes in the Total OPEB Liability and Related Ratios
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75.
Changes in benefit terms:
There were no significant changes in benefit terms.
Change in assumptions:
Changes in assumptions and other inputs reflect the effects of changes in the discount rate, health care
trend rates and other changes.
Note: GASB Statement No. 75 requires ten years of information to be presented in this table. However,
until a 10-year trend is completed, the City will present information for those years for which information
is available.
126
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127
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure
for particular purposes.
Road Use Tax Fund — This fund is used to account for state revenues allocated to the City for
maintenance and improvement of City streets.
Section VIII Housing Fund — This fund is used to account for the operations of federal Section VIII
existing, voucher, and moderate rehabilitation projects.
Employee Benefits Fund — This fund is used to account for pension and related employee benefit
costs for those employees paid wages from the General Fund.
Special Assessments Fund — This fund is used to account for the financing of public improvements
that are deemed to benefit primarily the properties against which special assessments are levied and
to accumulate monies for the payment of principal and interest on the outstanding long-term debt
service.
Cable TV Fund — This fund is used to account for the monies and related costs as set forth in the
cable franchise agreement between the City of Dubuque and the cable franchisee.
Library Expendable Gifts Trust — This fund is used to account for contributions given to the
library to be spent for specific purposes.
IFA Housing Trust — This fund is used to account for funds received under the Iowa Finance
Authority State Housing Trust Fund Program.
Police Expendable Gifts Fund — This fund is used to account for contributions given to the police
department to be spent for specific purposes.
Veteran's Memorial - This fund is used to account for contributions given to the Veteran's
Memorial for specific purposes and for maintainance.
128
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds and trust funds.
Airport Construction Fund — This fund is used to account for the resources and costs related to
airport capital improvements.
Sales Tax Construction Fund — This fund is used to account for the resources and costs related to
capital improvements financed through the local option sales tax.
General Construction Fund — This fund is used to account for the resources and costs related to
general capital improvements.
Street Construction Fund — This fund is used to account for the resources and costs related to street
capital improvements.
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only earnings,
not principal, may be used for purposes that support the reporting City's programs.
Ella Lyons Peony Trail Trust Fund — This fund is used for dividends and maintenance cost related
to the City Peony Trail, per trust agreement.
Library Gifts Trust Fund — This fund is used to account for testamentary gifts to the City library.
129
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Restricted cash and pooled cash investments
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Unearned revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax
Special assessments
Grants
Other
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Endowment corpus
Inventory
Prepaid items
Restricted:
Endowments
Library
Police
Veterans
Capital improvements
Franchise agreement
Special assessments
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
Revenue Funds
Road
Use Section VIII Employee Special
Tax Housing Benefits Assessments
$ 6,964,269 $ 497,215 $ - $ 11
- - 45,341
- - 2,444,620
3,576 12,194 - -
- - 363,853
61 -
901,605 71,883
320,002 -
18,870 -
- 265,606 - -
$ 8,208,322 $ 846,959 $ 2,489,961 $ 363,864
$ 212,839 $ 73,992 $ $
80,884 30,257
- 9,041
- 191,828
293,723 305,118
2,444,620 -
- 334,560
- 71,883 - -
- - 19,568 -
- 71,883 2,464,188 334,560
320,002 -
18,870 -
7,575,727 -
29,304
- 469,958 -
- - 25,773
7,914,599 469,958 25,773 29,304
$ 8,208,322 $ 846,959 $ 2,489,961 $ 363,864
130
EXHIBIT A-1
Revenue Funds Capital Projects Funds
Library Police IFA
Expendable Expendable Veteran's Housing Airport General Sales Tax
Cable TV Gifts Trust Gifts Trust Memorial Trust Construction Construction Construction
$ 561,520 $ 1,130,663 $ 8,397 $ 143,759 $ 464,759 $ - $ 109 $ 3,242,133
138,430
- -
-
398 638
5 - -
148
1,867
- -
- - 966,274 -
52,650
-
- 25,000 1,971,256
-
167,820
-
- - -
460,796
-
21,198
- - 59,675
-
-
- -
- - - 1,264,552
3,326,979
2,179,985
$ 721,546 $ 1,131,301 $
8,402 $ 143,759 $ 1,456,033 $ 3,295,483 $
3,840,682 $
5,591,805
$ 4,644 $ 19,105 $ $ - $ - $ 290,691 $ 166,667 $ 80,379
15,234 1,576 - - - - -
- - 1,534,939 49,207 -
19,878 20,681 - - 1,825,630 215,874 80,379
- - 138,988 -
- - 138,988 -
-
- - -
460,796
-
21,198
- - 59,675
-
-
1,110,620
- - -
-
-
8,402 - -
-
- 143,759 - -
-
-
- - 1,271,190
3,164,012
2,179,985
680,470
- - -
-
-
- 1,456,033
-
- - -
-
3,331,441
701,668 1,110,620
8,402 143,759 1,456,033 1,330,865
3,624,808
5,511,426
$ 721,546 $ 1,131,301 $
8,402 $ 143,759 $ 1,456,033 $ 3,295,483 $
3,840,682 $
5,591,805
(Continued)
131
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET EXHIBIT A-1 (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2021
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Restricted cash and pooled cash investments
Total Assets
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Unearned revenue
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax
Special assessments
Grants
Other
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable:
Endowment corpus
Inventory
Prepaid items
Restricted:
Endowments
Library
Police
Veterans
Capital improvements
Franchise agreement
Special assessments
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Total Fund Balances
Total Liabilities, Deferred Inflows of Resources and
Fund Balances
Capital Projects
Funds Permanent Funds
Total
Ella Lyons
Library Nonmajor
Street Peony Trail
Gifts Governmental
Construction Trust
Trust Funds
$ 10,528,131 $ - $ - $ 23,540,966
45,341
2,444,620
13,016 - 167,216
- - - 363,853
5,942 39 10 9,108
- - - 1,018,924
1,968,252 - 51105,816
- - 780,798
340 - 100,083
- 168,562 18,392 7,224,076
$ 12,515,681 $ 168,601 $ 18,402 $ 40,800,801
$ 544,268 $ - $ $ 1,392,585
- - 127,951
- - 9,041
- - 1,584,146
- - 191,828
544,268 - 3,305,551
2,444,620
- - 334,560
1,407,979 - 1,618,850
320,667 - 340,235
1,728,646 - 4,738,265
57,412 12,000 69,412
- - - 780,798
340 - 100,083
- 111,189 6,402 117,591
- - - 1,110,620
- - 8,402
- - 143,759
5,672,000 - 19,862,914
- - 680,470
- - 29,304
- - 1,456,033
- - 469,958
- - 25,773
4,570,427 - 7,901,868
10,242,767 168,601 18,402 32,756,985
$ 12,515,681 $ 168,601 $ 18,402 $ 40,800,801
132
THIS PAGE IS INTENTIONALLY LEFT BLANK
133
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Special Revenue Funds
Road
Use
Section VIII
Employee
Special
Tax
Housing
Benefits
Assessments
REVENUES
Taxes
$ -
$ - $
3,161,219
$ -
Special assessments
-
-
-
92,468
Intergovernmental
8,558,646
6,059,129
-
-
Charges for services
-
-
-
-
Investment earnings
-
2,509
-
17,292
Contributions
-
1,200
-
-
Miscellaneous
99,332
-
-
10,723
Total Revenues
8,657,978
6,062,838
3,161,219
120,483
EXPENDITURES
Governmental activities
Current
Public safety
-
-
-
-
Public works
6,326,003
-
-
-
Culture and recreation
-
-
-
-
Community and economic development
-
6,433,787
-
-
General government
474
-
248
-
Debt service
Interest and fiscal charges
-
-
-
-
Capital projects
-
-
-
-
Total Expenditures
6,326,477
6,433,787
248
-
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
2,331,501
(370,949)
3,160,971
120,483
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
-
-
-
-
Premium on refunding bonds
-
-
-
-
Transfers in
-
335,104
-
-
Transfers out
(112,367)
-
(3,192,230)
(109,510)
Insurance recovery
395
-
-
-
Sale of capital assets
41,000
-
-
-
Total Other Financing Sources (Uses)
(70,972)
335,104
(3,192,230)
(109,510)
SPECIAL ITEMS
Transfer of roads
-
-
-
-
Total Special Items
-
-
-
-
NET CHANGE IN FUND BALANCES
2,260,529
(35,845)
(31,259)
10,973
FUND BALANCES, BEGINNING
5,654,070
505,803
57,032
18,331
FUND BALANCES, ENDING
$ 7,914,599
$ 469,958 $
25,773 $
29,304
134
Special Revenue Funds Capital Projects Funds
Library
Police
IFA
Expendable
Expendable
Veteran's
Housing
Airport
General
Cable TV
Gifts Trust
Gifts Trust
Memorial
Trust
Construction
Construction
$ -
$ - $
-
$ - $
-
-
-
-
154,740
1,870,678
83,406
-
3,558
-
-
-
55,973
-
626
2,710
22
1,099
-
5,385
2,843
-
36
606
32,710
-
-
2,327
563,677
32,572
-
-
15,325
-
16,285
564,303
38,876
628
33,809
170,065
1,932,036
104,861
-
-
-
-
-
74,506
51,392
-
85,470
-
42,975
-
-
453
-
-
-
-
-
-
1,946
503,161
-
-
-
-
-
-
-
-
-
-
83,995
-
-
-
-
-
1,848,186
2,241,859
503,161
85,470
-
42,975
-
1,922,692
2,379,645
61,142
(46,594)
628
(9,166)
170,065
9,344
(2,274,784)
-
-
-
-
-
-
3,090,000
-
-
-
-
-
-
76,238
-
-
-
-
50,000
54,648
1,392,404
-
-
-
-
50,000
54,648
4,558,642
61,142
(46,594)
628
(9,166)
220,065
63,992
2,283,858
640,526
1,157,214
7,774
152,925
1,235,968
1,266,873
1,340,950
$ 701,668 $
1,110,620 $
8,402 $
143,759 $
1,456,033 $
1,330,865 $
3,624,808
EXHIBIT A-2
(Continued)
135
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXHIBIT A-2 (CONTINUED)
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
REVENUES
Taxes
Special assessments
Intergovernmental
Charges for services
Investment earnings
Contributions
Miscellaneous
Total Revenues
EXPENDITURES
Governmental activities
Current
Public safety
Public works
Culture and recreation
Community and economic development
General government
Debt service
Interest and fiscal charges
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
Premium on refunding bonds
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total Other Financing Sources (Uses)
SPECIAL ITEMS
Transfer of roads
Total Special Items
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
Capital Projects Funds Permanent Funds
Ella Lyons
Sales Tax Street Peony Trail
Construction Construction Trust
Total
Library Nonmajor
Gifts Governmental
Trust Funds
$ 2,265,659 $ 3,398,489 $ - $ - $ 8,825,367
- - - - 92,468
- 1,923,768 - - 18,650,367
- 19,440 - - 78,971
12,361 37,729 14,142 45 96,763
- - - - 36,879
1,666 4,430 - 248 744,258
2,279,686 5,383,856 14,142 293 28,525,073
438 - - - 438
- 328,921 - - 6,780,822
- - 1,430 - 130,328
- - - - 6,435,733
47,427 - - - 551,310
2,820 187 - - 87,002
1,712,968 1,911,566 - - 7,714,579
1,763,653 2,240,674 1,430 - 21,700,212
516,033 3,143,182 12,712 293 6,824,861
1,054,392
- -
- 4,144,392
33,591
- -
- 109,829
-
23,204 -
- 1,855,360
(1,118,120)
(634,253) -
- (5,166,480)
-
32,941 -
- 33,336
-
- -
- 41,000
(30,137)
(578,108) -
- 1,017,437
- 5,672,000 - - 5,672,000
- 5,672,000 - - 5,672,000
485,896 8,237,074 12,712 293 13,514,298
5,025,530 2,005,693 155,889 18,109 19,242,687
$ 5,511,426 $ 10,242,767 $ 168,601 $ 18,402 $ 32,756,985
136
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises -- where the intent of the City Council is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges; or where the City Council has decided that periodic determination of net income is appropriate
for accountability purposes.
Refuse Collection Fund — This fund is used to account for the operations of the City's refuse
collection services.
Transit System Fund — This fund is used to account for the operations of the City's bus and other
transit services.
Salt Fund — This fund is used to account for the operations of the City's salt distribution.
America's River Project — This fund is used to account for all projects covered by the Vision Iowa
Grant, including all matching funds.
137
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION EXHIBIT B-1
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2021
Total Other
Refuse Transit America's Enterprise
Collection System Salt River Project Funds
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
$ 1,427,059 $
3,033,992 $
68,080 $
- $ 4,529,131
Receivables
Accounts
519,141
-
-
- 519,141
Intergovernmental
-
1,246,251
-
- 1,246,251
Prepaid items
-
14,035
-
- 14,035
Inventories
-
6,450
-
- 6,450
Total Current Assets
1,946,200
4,300,728
68,080
- 6,315,008
NONCURRENT ASSETS
Restricted cash and pooled cash investments
-
921,153
-
- 921,153
Capital assets
Land
-
36,000
-
- 36,000
Buildings
-
12,861,136
175,458
- 13,036,594
Improvements to other than buildings
-
796,092
686,312
- 1,482,404
Machinery and equipment
2,808,292
7,038,066
36,342
- 9,882,700
Construction in progress
-
200,777
-
- 200,777
Accumulated depreciation
(2,289,927)
(5,642,773)
(205,219)
- (8,137,919)
Net Capital Assets
518,365
15,289,298
692,893
- 16,500,556
Total Noncurrent Assets
518,365
16,210,451
692,893
- 17,421,709
Total Assets
2,464,565
20,511,179
760,973
- 23,736,717
DEFERRED OUTFLOWS OF
RESOURCES
Pension related deferred outflows
223,820
281,860
-
- 505,680
OPEB related deferred outflows
17,256
14,237
-
- 31,493
Total Deferred Outflows of Resources
241,076
296,097
-
- 537,173
LIABILITIES
CURRENT LIABILITIES
Accounts payable
119,363
20,550
-
- 139,913
Accrued payroll
66,190
88,312
-
- 154,502
General obligation bonds payable
5,800
33,679
-
- 39,479
Accrued compensated absences
11,823
3,244
-
- 15,067
Accrued interest payable
1,815
2,023
-
- 3,838
Total Current Liabilities
204,991
147,808
-
- 352,799
NONCURRENT LIABILITIES
General obligation bonds payable
55,671
1,050,306
-
- 1,105,977
Accrued compensated absences
223,277
46,160
-
- 269,437
Net pension liability
1,050,746
1,323,216
-
- 2,373,962
Total OPEB liability
240,885
198,731
-
- 439,616
Total Noncurrent Liabilities
1,570,579
2,618,413
-
- 4,188,992
Total Liabilities
1,775,570
2,766,221
-
- 4,541,791
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
40,462
50,956
-
- 91,418
OPEB related deferred inflows
11,376
9,385
-
- 20,761
Total Deferred Inflows of Resources
51,838
60,341
-
- 112,179
NET POSITION
Net investment in capital assets
456,895
15,126,465
692,891
- 16,276,251
Unrestricted
421,338
2,854,249
68,082
- 3,343,669
Total Net Position
$ 878,233 $
17,980,714 $
760,973 $
- $ 19,619,920
138
CITY OF DUBUQUE, IOWA EXHIBIT B-2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
Total Other
Refuse
Transit
America's Enterprise
Collection
System
Salt
River Project Funds
OPERATING REVENUES
Charges for sales and services
$ 4,415,290
$ 60,504
$ 125,189 $
- $ 4,600,983
Other
9,120
28,704
-
- 37,824
Total Operating Revenues
4,424,410
89,208
125,189
- 4,638,807
OPERATING EXPENSES
Employee expense
3,025,274
1,988,380
-
- 5,013,654
Utilities
17,327
88,398
-
- 105,725
Repairs and maintenance
322,415
842,045
1,634
- 1,166,094
Supplies and services
983,100
458,984
118,251
- 1,560,335
Insurance
21,483
52,784
-
- 74,267
Depreciation
174,967
894,630
27,639
- 1,097,236
Total Operating Expenses
4,544,566
4,325,221
147,524
- 9,017,311
OPERATING (LOSS)
(120,156)
(4,236,013)
(22,335)
- (4,378,504)
NONOPERATING REVENUES
(EXPENSES)
Intergovernmental
-
3,915,121
-
- 3,915,121
Investment earnings
14,295
118
-
- 14,413
Contributions
87
-
-
- 87
Interest expense
(1,602)
(724)
-
- (2,326)
Gain on disposal of assets
-
(168,358)
-
- (168,358)
Net Nonoperating Revenues
12,780
3,746,157
-
- 3,758,937
(LOSS) BEFORE TRANSFERS
(107,376)
(489,856)
(22,335)
- (619,567)
CAPITAL CONTRIBUTIONS
-
129,977
- - 129,977
TRANSFERS IN
40,557
2,112,601
- - 2,153,158
TRANSFERS OUT
-
-
- (4) (4)
CHANGE IN NET POSITION
(66,819)
1,752,722
(22,335) (4) 1,663,564
NET POSITION, BEGINNING
945,052
16,227,992
783,308 4 17,956,356
NET POSITION, ENDING
$ 878,233 $
17,980,714 $
760,973 $ - $ 19,619,920
139
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2021
America's Total Other
Refuse
Transit
River Enterprise
Collection
System
Salt
Project Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
$ 4,320,594
$ 60,943 $
125,189
$ - $ 4,506,726
Cash payments to suppliers for goods and services
(1,249,279)
(3,053,944)
(119,885)
- (4,423,108)
Cash payments to employees for services
(2,947,861)
(2,062,590)
-
- (5,010,451)
Other operating receipts
9,120
28,704
-
- 37,824
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
132,574
(5,026,887)
5,304
- (4,889,009)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
40,557 2,112,601
- - 2,153,158
- -
- (4) (4)
87 129,977
- - 130,064
- 5,762,668
- - 5,762,668
40,644 8,005,246
- (4) 8,045,886
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from issuance of debt - 792,016
Acquisition and construction of capital assets - (878,755)
Principal Paid (5,400) (6,532)
Interest paid (1,925) NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES (7,325) (93,271)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND POOLED
INVESTMENTS
14,295
118
180,188 2,885,206 5,304
CASH AND POOLED INVESTMENTS, BEGINNING 1,246,871 1,069,939 62,776
CASH AND POOLED INVESTMENTS, ENDING $ 1,427,059 3,955,145 $ 68,080 $
- 792,016
- (878,755)
- (11,932)
(1,925)
(100,596
14,413
(4) 3,070,694
4 2,379,590
- $ 5,450,284
140
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS EXHIBIT B-3
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2021
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) Decrease in receivables
Decrease in inventories and prepaid items
Increase in accounts payable
Increase (Decrease) in accrued liabilities
(Decrease) in net pension liability
Decrease in deferred outflows
Increase in deferred inflows
Increase in total OPEB liability
Total Adjustments
Business -type Activities - Enterprise Funds
America's Total Other
Refuse River Enterprise
Collection Transit Salt Project Funds
$ (120,156) $ (4,236,013) $ (22,335) $
174,967
894,630 27,639
(94,696)
439 -
-
(5,753) -
95,046
(1,605,980) -
20,700
17,434 -
189,655
59,442 -
(26,601)
11,844 -
(111,919)
(171,173) -
5,578
8,243 -
252,730
(790,874) 27,639
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 132,574 $ (5,026,887) $ 5,304 $
- $ (4,378,504)
- 1,097,236
(94,257)
(5,753)
(1,510,934)
38,134
249,097
(14,757)
(283,092)
13,821
- (510,505)
$ (4,889,009)
141
THIS PAGE IS INTENTIONALLY LEFT BLANK
142
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.
143
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2021
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Inventories
Total Current Assets
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Due to other funds
Total Current Liabilities
NONCURRENT LIABILITIES
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
NET POSITION
Net investment in capital assets
Unrestricted
Total Net Position (Deficit)
General Garage Stores/
Service Service Printing
$ - $ 696,548 $ -
46,027 6,299
742,575 6,299
- 356,590 -
- (301,674) -
- 54,916 -
- 54,916 -
- 797,491 6,299
232,520 129,967 -
18,953 3,901
41,257 -
- 3,034
60,210 6,935
1,091,602
610,157 -
1,091,602
610,157 -
1,091,602
670,367 6,935
42,036 23,495 -
54,916 -
(901,118) 178,680 (636)
$ (901,118) $ 233,596 $ (636)
144
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 4,825,080 $ 944,831 $ 6,466,459
184,348 - 184,348
2,723 533 3,256
- - 52,326
5,012,151 945,364 6,706,389
- 356,590
- (301,674)
- 54,916
- - 54,916
5,012,151 945,364 6,761,305
362,487
1,094,417 1,079,779 2,197,050
- - 41,257
- - 3,034
1,094,417 1,079,779 2,241,341
- - 1,701,759
- - 1,701,759
1,094,417 1,079,779 3,943,100
65,531
- - 54,916
3,917,734 (134,415) 3,060,245
$ 3,917,734 $ (134,415) $ 3,115,161
EXHIBIT C-1
145
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment earnings (loss)
Gain on disposal of assets
Net Nonoperating Revenues (Expenses)
CHANGE IN NET POSITION
NET POSITION (DEFICIT), BEGINNING
NET POSITION (DEFICIT), ENDING
General Garage Stores/
Service Service Printing
$ 1,646,434 $ 1,926,938 $ 532,296
- 27,581 -
1,646,434 1,954,519 532,296
1,569,918 1,010,615 -
- 24,307 6,542
- 86,889 -
324,814 738,098 546,580
- 16,199 -
- 38,540 -
1,894,732 1,914,648 553,122
(248,298) 39,871 (20,826)
- 3,511 -
3,511 -
(248,298) 43,382 (20,826)
(652,820) 190,214 20,190
$ (901,118) $ 233,596 $ (636)
146
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 9,845,761 $ 845,548 $ 14,796,977
2,586 19,147 49,314
9,848,347 864,695 14,846,291
2,580,533
30,849
- - 86,889
9,967,748 1,559,917 13,137,157
(2,160) 733,543 747,582
- - 38,540
9,965,588 2,293,460 16,621,550
(117,241) (1,428,765) (1,775,259)
22,001 (789) 21,212
- - 3,511
22,001 (789) 24,723
(95,240) (1,429,554) (1,750,536)
4,012,974 1,295,139 4,865,697
$ 3,917,734 $ (134,415) $ 3,115,161
EXHIBIT C-2
147
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2021
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 interfund balances
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
POOLED INVESTMENTS
CASH AND POOLED INVESTMENTS, BEGINNING
CASH AND POOLED INVESTMENTS, ENDING
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income
Adjustments to reconcile operating income to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) in receivables
(Increase) Decrease in inventories and prepaid items
Increase (Decrease) in accounts payable
(Decrease) in net pension liability
Decrease in deferred outflows
Increase in deferred inflows
Increase in accrued liabilities
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
General
Garage
Stores/
Service
Service
Printing
$ 1,646,434 $
1,926,938 $
532,296
(324,814)
(879,581)
(549,594)
(1,486,903)
(956,442)
-
-
27,581
-
(165,283)
118,496
(17,298)
-
-
3,034
-
3,511
-
(165,283)
122,007
(14,264)
165,283
574,541
14,264
$ - $
696,548 $
-
$ (248,298) $ 39,871 $ (20,826)
38,540 -
-
5,292
8,185
-
(19,380)
(4,657)
219,043
121,429
(25,713)
(14,133)
(110,315)
(61,837)
-
-
8,714
-
83,015
78,625
3,528
$ (165,283) $
118,496 $
(17,298)
148
Health
Workers'
Insurance
Compensation
Reserve
Reserve
Total
$ 9,929,590
$ 845,548
$ 14,880,806
(9,744,760)
(1,529,475)
(13,028,224)
-
-
(2,443,345)
2,586
19,147
49,314
187,416
(664,780)
(541,449)
-
-
3,034
-
-
3,511
34,090
3,844
37,934
221,506
(660,936)
(496,970)
4,603,574
1,605,767
6,963,429
$ 4,825,080
$ 944,831
$ 6,466,459
$ (117,241) $ (1,428,765) $ (1,775,259)
38,540
83,829 - 83,829
- 183,763 197,240
220,828 580,222 777,013
- - 340,472
- - (39,846)
- - (172,152)
- - 8,714
304,657 763,985 1,233,810
$ 187,416 $ (664,780) $ (541,449)
EXHIBIT C-3
149
THIS PAGE IS INTENTIONALLY LEFT BLANK
150
CUSTODIAL FUNDS
The custodial 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.
151
CITY OF DUBUQUE, IOWA
COMBINING SCHEDULE OF FIDUCIARY EXHIBIT D-1
NET POSITION
CUSTODIAL FUNDS
JUNE 30, 2021
ASSETS
Cash and pooled cash investments
Accounts receivable
Prepaids
Accrued interest
Total Assets
NET POSITION
Restricted for individuals,
organizations, and other governments
Total Net Position
Cable
Dog Track
Equipment
Depreciation
Fund
Fund Total
$ 1,075,287 $ 1,177,454 $ 2,252,741
48,451 - 48,451
3,064 - 3,064
- 664 664
$ 1,126,802 $ 1,178,118 $ 2,304,920
1,126,802 1,178,118 2,304,920
$ 1,126,802 $ 1,178,118 $ 2,304,920
152
CITY OF DUBUQUE, IOWA
COMBINING SCHEDULE OF CHANGES IN FIDUCIARY NET POSITION EXHIBIT D-2
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2021
ADDITIONS
Cable franchise fee
Racing association
Miscellaneous
Total Additions
DEDUCTIONS
Equipment acquisition
Total Deductions
CHANGE IN NET POSITION
NET POSITION, BEGINNING, AS RESTATED
NET POSITION, ENDING
See notes to financial statements.
Cable
Equipment Fund
Dog Track
Depreciation
Fund Total
$ 196,749 $ - $ 196,749
- 120,000 120,000
96 3,244 3,340
196,845 123,244 320,089
5,506
5,506
191,339
5,506
- 5,506
123,244 314,583
935,463 1,054,874 1,990,337
$ 1,126,802 $ 1,178,118 $ 2,304,920
153
THIS PAGE IS INTENTIONALLY LEFT BLANK
154
Statistical Section (Unaudited)
June 30, 2021
City of Dubuque, Iowa
155
THIS PAGE IS INTENTIONALLY LEFT BLANK
156
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents
Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time. 154
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 162
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City's current levels of outstanding debt and the City's ability to issue additional
debt in the future. 166
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City's financial activities take place
and to help make comparisons over time and with other governments. 177
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City's financial report relates to the services the City
provides and the activities it performs. 179
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
157
CITY OF DUBUQUE, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2012 2013 2014 2015 2016
Governmental activities
Net investment in capital assets
$ 347,890,769
$ 342,046,442
$ 354,732,451
$ 348,173,267
$ 369,244,904
Restricted
26,180,100
23,491,207
21,501,638
22,047,405
21,473,309
Unrestricted
(16,876,988)
(8,361,688)
(18,151,279)
(49,579,334)
(47,166,839)
Total governmental activities net position
$ 357,193,881
$ 357,175,961
$ 358,082,810
$ 320,641,338
$ 343,551,374
Business -type activities
Net investment in capital assets
$
132,237,734
$
138,498,777
$
138,842,390
$
148,487,126
$
161,326,743
Restricted
957,802
6,011,848
5,315,519
7,796,668
4,254,907
Unrestricted
10,665,596
(641,384)
(593,202)
(4,568,933)
(7,339,071)
Total business -type activities net position
$
143,861,132
$
143,869,241
$
143,564,707
$
151,714,861
$
158,242,579
Primary government
Net investment in capital assets
$
480,128,503
$
480,545,219
$
493,574,841
$
496,660,393
$
530,571,647
Restricted
27,137,902
29,503,055
26,817,157
29,844,073
25,728,216
Unrestricted
(6,211,392)
(9,003,072)
(18,744,481)
(54,148,267)
(54,505,910)
Total primary government net positions
$
501,055,013
$
501,045,202
$
501,647,517
$
472,356,199
$
501,793,953
158
Year
TABLE 1
2017 2018 2019 2020 2021
$ 375,578,520
$
379,040,697
$
385,005,220
$
387,344,725
$
387,768,367
23,955,112
27,269,997
28,321,603
26,501,434
34,083,157
(43,921,629)
(41,853,174)
(36,682,314)
(35,985,750)
(30,327,770)
$ 355,612,003
$
364,457,520
$
376,644,509
$
377,860,409
$
391,523,754
$ 164,448,390
$
168,205,523
$
179,561,228
$
191,757,112
$
207,159,931
3,796,752
3,053,616
3,131,716
3,187,364
2,942,894
3,876,760
10,696,792
12,617,567
17,437,890
27,491,072
$ 172,121,902
$
181,955,931
$
195,310,511
$
212,382,366
$
237,593,897
$ 540,026,910
$
547,246,220
$
564,566,448
$
579,101,837
$
594,928,298
27,751,864
30,323,613
31,453,319
29,688,798
37,026,051
(40,044,869)
(31,156,382)
(24,064,747)
(18,547,860)
(2,836,698)
$ 527,733,905
$
546,413,451
$
571,955,020
$
590,242,775
$
629,117,651
159
CITY OF DUBUQUE, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Expenses
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities expenses
Business -type activities:
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Total business -type activities expenses
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services
Public safety
Public works
Culture and recreation
Other activities
Operating grants and contributions
Capital grants and contributions
Total governmental activities program revenues
Business -type activities:
Charges for services
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Operating grants and contributions
Capital grants and contributions
Total business -type activities program revenues
Total primary government program revenues
Fiscal -
2012 2013 2014 2015 2016
$ 26,326,367
22,917,747
913,954
12,749,558
22,030,950
6,133,983
3,294,912
94,367,471
9,718,669
7,410,710
2,750,767
3,152,055
22,787
3,173,075
3,629,750
661,395
30,519,208
$ 124,886,679
2,915,562
5,178,439
2,321,553
2,873,298
23,013,997
16,560,811
52,863,660
7,827,281
6,037,073
3,180,134
2,908,989
3,257,960
278,835
665,942
1,579,493
5,323,486
31,059,193
$ 83,922,853
$ 28,292,481
21,607,536
716,970
13,647,178
17,388,720
6,248,483
4,049,640
91,951,008
9,375,748
6,817,772
3,347,304
3,586,405
22,770
3,468,859
3,492,095
346,066
30,457,019
$ 122,408,027
2,495,737
4,472,479
2,488,844
3,264,979
13,995,316
10,791,945
37,509,300
8,924,785
6,922,582
3,192,256
2,883,865
3,346,795
307,314
395,000
2,264,695
1,240,583
29,477,875
$ 66,987,175
$ 27,578,517
21,306,882
1,055,398
13,696,331
14,591,257
9,610,084
3,684,993
91,523,462
11,481,103
8,812,340
3,431,096
3,732,492
33,579
3,750,366
3,847,320
56,468
35,144,764
$ 126,668,226
2,624,455
5,829,293
2,321,265
3,921,256
12,784,907
12,162,649
39,643,825
10,025,673
7,248,790
3,224,504
2,920,148
3,700,922
275,907
45,600
1,717,208
2,920,942
32,079,694
$ 71,723,519
$ 25,525,937
19,207,837
928,968
13,002,690
18,064,831
6,420,173
3,903,667
87,054,103
12,019,866
7,800,393
4,131,562
3,383,419
24,000
3,740,404
4,245,823
244,691
35,590,158
$ 122,644,261
2,532,114
6,092,356
2,547,843
3,493,143
11,992,439
9,704,043
36,361,938
10,582,662
7,463,430
3,490,040
3,036,214
3,783,493
397,545
232,271
1,866,535
10,020,715
40,872,905
$ 77,234,843
160
TABLE 2
Year
2017
2018
2019
2020
2021
$ 30,020,343
$ 29,482,962
$ 29,637,417
$ 32,079,903
$ 32,583,676
19,608,137
20,393,871
24,835,035
22,667,132
20,949,455
815,251
883,217
1,442,658
1,677,181
1,487,042
13,653,509
14,323,710
12,916,646
13,576,571
11,341,436
18,096,170
21,109,384
15,837,039
17,848,570
18,168,279
8,982,668
7,573,081
5,944,116
8,821,692
10,046,004
3,467,685
3,129,502
3,387,730
2,929,997
2,791,647
94,643,763
96,895,727
94,000,641
99,601,046
97,367,539
11,326,661
11,614,347
12,177,352
11,725,889
12,277,013
6,807,217
7,109,421
7,892,423
7,631,411
7,968,029
6,234,015
6,159,039
7,025,525
5,887,171
6,164,947
3,547,856
2,866,510
2,845,911
3,414,851
3,334,222
22,893
10,143
19,874
3,161
-
4,208,268
4,244,551
4,215,881
4,387,683
4,546,168
4,237,054
4,722,979
4,533,060
4,748,463
4,494,303
45,039
119,421
182,092
333,556
147,524
36,429,003
36,846,411
38,892,118
38,132,185
38,932,206
$ 131,072,766
$ 133,742,138
$ 132,892,759
$ 137,733,231
$ 136,299,745
2,930,068
2,600,751
2,535,504
2,641,633
4,942,529
5,681,107
6,654,101
7,327,692
6,732,825
10,937,121
2,767,636
2,874,493
2,459,644
2,237,000
2,876,779
3,541,205
5,864,541
3,815,321
5,455,952
1,753,928
15,028,527
21,569,356
23,198,271
14,484,320
24,436,818
13,360,280
7,779,713
11,048,200
15,450,271
12,266,220
43,308,823
47,342,955
50,384,632
47,002,001
57,213,395
12,442,5 84
12,659,662
12,479,684
12,606,632
13,070,575
8,553,225
8,906,136
8,959,023
9,273,720
9,608,742
4,076,396
4,367,963
4,714,670
5,061,855
5,177,696
3,286,947
3,034,744
3,066,118
2,313,344
2,007,307
4
4
4
4,185,051
4,232,542
4,351,428
4,448,317
4,424,410
459,258
465,550
512,385
400,576
168,493
86,887
96,273
174,784
346,753
125,189
1,700,171
1,648,403
1,917,366
2,967,619
9,894,477
14,160,820
5,705,262
6,215,459
6,410,594
6,691,110
48,951,343
41,116,539
42,390,921
43,829,410
51,167,999
$ 92,260,166
$ 88,459,494
$ 92,775,553
$ 90,831,411
$ 108,381,394
(Continued)
161
CITY OF DUBUQUE, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
General Revenues and Other Changes in Net Position
Governmental activities:
General Revenues
Property taxes
Local option sales tax
Hotel/motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Gain on sale of capital assets
Other
Transfers
Special item - Transfer of roads
Total governmental activities
Business -type activities:
General Revenues
Unrestricted investment earnings
Gain on sale of capital assets
Extraordinary item
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Fiscal -
2012 2013 2014 2015 2016
$ (41,503,811) $ (54,441,708) $ (51,879,637) $ (50,692,165) $ (38,607,948)
539,985 (979,144) (3,065,070) 5,282,747 5,037,466
$ (40,963,826) $ (55,420,852) $ (54,944,707) $ (45,409,418) $ (33,570,482)
$ 30,816,614
$ 32,668,554 $
33,264,283
$ 36,277,719 $
36,518,506
8,459,888
8,764,787
8,211,366
8,760,246
9,155,411
1,903,944
1,953,763
2,006,514
2,623,551
2,128,042
2,272,481
2,568,347
2,609,421
2,828,688
4,360,107
8,785,453
8,452,298
7,878,008
7,397,709
8,440,161
1,529,149
201,153
777,958
668,134
1,082,165
1,417,048
907,122
483,782
19,495
813,492
(4,749,948)
(1,092,236)
(2,444,846)
(7,288,593)
(979,900)
206,672
65,321
135,461
185,356
407,528
84,178
384,697
180,229
6,571
102,824
(243,722)
(555,031)
-
-
-
4,749,948
1,092,236
2,444,846
7,288,593
979,900
4,797,076
987,223
2,760,536
7,480,520
1,490,252
$ 8,930,818 $ (17,920) $ 906,849 $ 594,784 $ 22,910,036
5,337,061 8,079 (304,534) 12,763,267 6,527,718
162
TABLE 2
(continued)
Year
2017 2018 2019 2020 2021
$ (51,334,940)
$ (49,552,772)
$ (43,616,009)
$ (52,599,045)
$ (40,154,144)
12,522,340
4,270,124
3,494,540
5,697,225
12,235,793
$ (38,812,600)
$ (45,282,648)
$ (40,121,469)
$ (46,901,820)
$ (27,918,351)
$ 39,678,473
$ 39,632,246
$ 37,973,888
$ 38,354,691
$ 39,524,078
8,890,046
8,610,948
8,940,109
9,652,332
11,328,295
2,821,745
2,286,469
2,113,273
2,117,506
2,036,045
4,558,847
4,832,958
5,072,350
4,976,472
4,920,610
8,098,324
8,062,251
8,730,986
7,394,294
8,077,003
335,577
688,769
1,858,476
1,857,420
142,102
83,720
309,857
94,980
23,866
296,969
(1,071,163)
(5,423,015)
(8,981,064)
(10,561,636)
(12,845,032)
-
-
-
-
337,419
63,395,569
59,000,483
55,802,998
53,814,945
53,817,489
231,746
268,283
798,497
796,494
130,706
54,074
4,680
80,479
16,500
-
1,071,163
5,423,015
8,981,064
10,561,636
12,845,032
1,356,983
5,695,978
9,860,040
11,374,630
12,975,738
$ 64,752,552
$ 64,696,461
$ 65,663,038
$ 65,189,575
$ 66,793,227
$ 12,060,629 $ 9,447,711 $ 12,186,989 $ 1,215,900 $ 13,663,345
13,879,323 9,966,102 13,354,580 17,071,855 25,211,531
163
CITY OF DUBUQUE, IOWA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2012
2013
2014
2015
2016
General Fund
Nonspendable
$ 5,613,359 $
6,646,278 $
6,549,063
$ 6,082,043
$ 6,049,052
Restricted
-
-
-
-
-
Assigned
5,549,803
3,434,440
1,904,805
647,772
1,015,935
Unassigned
9,371,016
8,806,171
7,356,066
8,693,524
10,908,497
Total general fund
$ 20,534,178 $
18,886,889 $
15,809,934
$ 15,423,339
$ 17,973,484
All Other Governmental Funds
Nonspendable $ 10,975,468 $ 9,092,520 $ 8,640,780 $ 1,183,423 $ 553,292
Restricted 31,362,126 30,738,046 23,620,615 30,496,183 27,450,187
Committed 5,843,671 10,827,172 10,548,592 12,298,896 7,635,502
Unassigned (429,344) - - - -
Total all other governmental funds $ 47,751,921 $ 50,657,738 $ 42,809,987 $ 43,978,502 $ 35,638,981
164
Year
TABLE 3
2017 2018 2019 2020 2021
$ 5,585,672 $ 5,414,922 $ 5,369,478 $ 5,145,558 $ 3,895,638
2,208
-
229,995
219,741
197,264
1,590,065
1,267,250
1,438,616
1,396,196
2,868,215
12,582,596
15,193,241
19,276,479
20,128,223
28,023,989
$ 19,760,541
$ 21,875,413
$ 26,314,568
$ 26,889,718
$ 34,985,106
$ 944,856
$ 415,271
$ 406,813
$ 1,030,515
$ 960,898
28,103,397
30,347,598
34,367,024
30,247,351
40,785,902
6,592,154
4,660,158
3,009,111
5,823,218
7,901,868
-
(2,021,937)
(1,185,047)
(2,703,558)
(1,561,830)
$ 35,640,407
$ 33,401,090
$ 369597,901
$ 349397,526
$ 489086,838
165
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Contributions
Gaming
Miscellaneous
Total revenues
Expenditures
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Principal
Interest
Capital projects
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of bonds
Discount on bonds
Premiums on bonds
Issuance of refunding bonds
Payment to refunded bonds escrow agent
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total other financing sources (uses)
Special Items
Transfer of roads
Total special items
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
Fiscal -
�nin nnic manic
$ 43,443,669
$ 45,440,973
$ 46,034,361
$ 50,490,204
$ 51,580,084
596,138
175,486
154,692
85,501
111,193
1,570,022
1,271,771
1,136,941
1,198,420
1,480,643
37,574,783
26,580,831
23,050,052
20,828,524
29,302,824
9,296,329
8,952,179
10,264,257
10,711,243
10,919,854
525,389
484,128
455,219
362,661
421,925
1,511,437
180,016
756,809
668,134
1,082,165
1,578,376
370,154
678,561
789,268
1,440,405
8,785,453
8,452,298
7,878,008
7,397,709
8,440,161
1,319,558
1,315,915
1,705,275
1,466,542
1,367, 875
106,201,154
93,223,751
92,114,175
93,998,206
106,147,129
24,476,772
26,506,714
27,644,190
27,570,773
28,036,551
12,385,929
13,416,108
13,942,772
11,200,427
14,597,823
828,837
680,466
1,049,194
939,172
1,015,987
10,873,474
11,218,019
12,351,497
12,300,454
11,909,029
22,237,140
18,678,496
14,420,980
16,418,909
13,473,413
6,335,947
5,035,108
5,898,293
5,977,605
6,436,114
3,224,680
3,182,240
4,595,808
4,910,735
10,302,412
3,220,546
3,991,115
3,650,694
3,577,829
3,707,268
23,459,891
16,636,698
18,779,651
14,829,037
31,504,581
107,043,216
99,344,964
102,333,079
97,724,941
120,983,178
(842,062) (6,121,213) (10,218,904) (3,726,735) (14,836,049)
27,215,363
6,577,268
(71,689)
-
123,990
-
-
4,949,148
-
(4,949,148)
8,773,387
15,295,630
(18,336,603)
(16,981,203)
132,425
49,209
2,221,877
2,438,837
20,058,750
7,379,741
11,137,321
3,933,882
72,852
292,521
-
-
4,650,000
15,862,516
18,073,5 53
17,397,007
(17,294,762)
(25,241,795)
(18,376,907)
59,796
106,288
86,359
666,648
360,436
1,063,814
(705,802)
4,508,655
9,046,676
W - N I W - N Vim, - 11
7.65% 8.57% 9.51% 9.97% 15.17%
166
Year
TABLE 4
2017 2018 2019 2020 2021
$ 55,949,111 $
55,362,621
$ 54,101,901
$ 54,818,674 $
57,809,028
261,233
122,968
113,178
76,394
101,219
1,505,564
1,642,498
1,619,892
1,497,086
1,983,531
26,314,297
27,229,554
31,359,695
28,618,060
31,984,376
10,816,025
11,559,017
12,476,036
10,994,598
13,480,915
484,687
407,322
404,400
365,458
375,268
335,577
688,769
1,701,846
1,699,015
120,890
689,237
816,922
1,343,916
1,163,721
3,564,843
8,098,324
8,062,251
8,708,702
7,394,294
8,077,003
1,811,681
1,589,072
1,526,804
3,517,089
1,399,203
106,265,736
107,480,994
113,356,370
110,144,3 89
118,896,276
29,155,128
28,581,466
28,807,920
29,518,515
29,038,359
11,728,716
11,687,309
12,851,393
11,838,812
12,104,310
868,280
854,045
1,046,184
1,340,544
1,067,491
12,397,294
12,776,591
13,037,048
13,199,378
11,917,333
16,474,553
20,350,200
15,730,191
16,685,406
17,531,856
7,287,586
6,755,479
6,571,094
7,447,439
7,499,790
17,615,698
7,989,850
5,509,605
7,065,499
27,524,288
3,579,807
3,274,200
3,320,911
3,044,421
2,997,621
16,260,851
17,402,848
20,145,054
21,089,439
15,308,122
115,367,913
109,671,988
107,019,400
111,229,453
124,989,170
(9,102,177)
(2,190,994)
6,336,970
(1,085,064)
(6,092,894)
230,000
110,000
2,883,875
1,372,907
-
319,384
16,915
81,693
62,182
953,857
11,023,700
1,778,325
25,605,950
18,814,586
18,889,096
17,025,952
17,146,200
13,730,128
(19,917,219)
(20,980,391)
(18,876,402)
(19,858,343)
(19,145,976)
41,345
98,058
87,843
71,604
136,979
378,861
2,154,546
96,035
665,289
924,656
10,890,657
2,066,549
1,298,996
(540,161)
22,205,594
-
-
-
5,672,000
-
-
5,672,000
$ 1,788,480 $
(124,445)
$ 7,635,966
$ (1,625,225) $
21,784,700
20.94%
11.96%
9.84%
11.01%
28.26%
167
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 5
Total
Taxable
Value to
Real Property
Exemptions
Total
Total
Levy
Fiscal
Taxable
Assessed
Real
Taxable
Assessed
Assessed
Total Direct
Year
Year
Value
Value
Property
Value
Value
Value
Tax Rate
2010
2012
$ 2,243,474
$ 3,406,186
$ 8,875 $
2,234,599 $
3,406,186
65.60 %
10.45111 %
2011
2013
2,337,129
3,476,638
8,872
2,328,257
3,476,638
66.97
10.78478
2012
2014
2,398,151
3,503,774
8,799
2,389,352
3,503,774
68.19
11.02586
2013
2015
2,522,048
3,686,202
8,729
2,513,319
3,686,202
68.18
11.02588
2014
2016
2,508,933
3,723,003
8,631
2,500,302
3,723,003
67.16
11.02590
2015
2017
2,652,700
3,914,425
8,086
2,644,614
3,914,425
67.56
11.16739
2016
2018
2,686,813
3,931,498
7,783
2,679,030
3,931,498
68.14
10.89220
2017
2019
2,765,470
4,141,732
7,921
2,757,549
4,141,732
66.58
10.58844
2018
2020
2,825,245
4,185,444
7,640
2,825,245
4,185,444
67.50
10.33144
2019
2021
2,912,635
4,378,243
7,531
2,912,635
4,378,243
66.53
10.14400
Source: Dubuque County Assessor's and Auditor's Offices
168
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES TABLE 6
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER $1,000 ASSESSED VALUE
Levy
Year
Fiscal
Year
Dubuque
City
Dubuque
School
District
Board of
Education and
Independents
Area 1
Voc. Tech
Dubuque
County
Total
Ratio of
Dubuque
City to Total
2010
2012 $
10.45111 $
16.87685 $
0.67766 $
1.07379 $
6.49167 $
35.57108
29.38
%
2011
2013
10.78477
15.40388
0.71653
0.98407
6.43124
34.32049
31.42
2012
2014
11.02586
14.60281
0.75274
0.90455
6.43124
33.71720
32.70
2013
2015
11.02588
13.99630
0.66355
0.90807
6.43124
33.02504
33.39
2014
2016
11.02590
14.05629
0.63899
0.91036
6.38779
33.01933
33.39
2015
2017
11.16739
14.97697
0.63146
0.93757
6.29673
34.01012
32.84
2016
2018
10.89220
14.95665
0.62780
1.09993
6.34143
33.91801
32.17
2017
2019
10.58844
14.59791
0.65204
1.09993
5.97760
32.91592
32.11
2018
2020
10.33144
14.71233
0.64911
1.03168
5.94098
32.66554
31.63
2019
2021
10.144000
14.66255
0.62819
0.94734
5.91098
32.29306
31.41
Separate components of the Dubuque City Rate is as follows:
Levy
Fiscal
Public
Employee
Debt
Year
Year
General
Transit
Insurance
Benefits
Service
Total
2010
2012
$ 8.10000
$ 0.35273
$ 0.19508
$ 1.75052
$ 0.05278
$ 10.45111
2011
2013
8.10000
0.49516
0.13965
2.02267
0.02729
10.78477
2012
2014
8.10000
0.38382
0.16288
2.33093
0.04823
11.02586
2013
2015
8.10000
0.48268
0.16595
2.23209
0.04516
11.02588
2014
2016
8.10000
0.48461
0.16428
2.16440
0.11261
11.02590
2015
2017
8.10000
0.49739
0.14963
2.30637
0.11400
11.16739
2016
2018
8.10000
0.66319
0.15561
1.89350
0.07990
10.89220
2017
2019
8.10000
0.62877
0.13933
1.62026
0.10008
10.58844
2018
2020
8.10000
0.61307
0.13974
1.38492
0.09371
10.33144
2019
2021
8.10000
0.63405
0.14103
1.17623
0.09269
10.14400
Source: Dubuque County Auditor's Office.
169
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2021 2012
Taxable
Taxpayer
Value
Rank
Peninsula Gaming Company LLC
$ 63,875
1
Kennedy Mall Inc.
37,661
2
GRDT Investments LLC (Queck)
30,682
3
ITC Midwest LLC
30,299
4
Progressive Proccessing LLC
(Hormel)
25,386
5
MAR Holdings LLC (Medical Assoc.)
21,343
6
Walter Development LLC
19,445
7
City of Dubuque
14,810
8
Nordstrom, Inc.
14,800
9
McGraw HIII Global Education LLC
13,500
10
Platinum Holdings LLC
Otto A LLC
Asbury Dubuque LLC
$ 271,801
Source: Dubuque County Auditor's Office
Percentage of
Total City
Taxable
Taxable
Value
Value
Rank
2.19 %
$ 56,784
1
1.29
27,206
2
1.05
19,559
4
1.04
0.87
13,780
8
0.73
17,221
5
0.67
21,397
3
0.51
0.51
14,729
6
0.46
11,588
9
14,100
7
10,867
10
9.32 %
$ 207,231
TABLE 7
Percentage of
Total City
Tnvnhla
1.21
0.87
0.61
0.77
0.95
0.67
0.52
0.63
0.48
9.24 %
170
CITY OF DUBUQUE, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 8
Total
Percent of
Total Tax
Ratio of
Tax
Current
Current
Delinquent
Total Tax
Collections
Outstanding
Delinquent
Fiscal
Levy
Levy
Tax
Taxes
Tax
Collections
to Total
Delinquent
Taxes to Total
Year
Year
(1) Collections
Collected
Collections
(2)
Tax Levy
Taxes
Tax Levy
2012
2011
$ 21,340 $
21,339
100.0 %
$ 1
$ 21,340
99.9 %
$ 185
0.87 %
2013
2012
22,789
22,752
99.8
7
22,759
99.9
182
0.80
2014
2013
23,993
23,915
99.7
8
23,923
99.7
211
0.88
2015
2014
24,866
24,715
99.4
7
24,722
99.4
362
1.46
2016
2015
24,944
24,889
100.0
84
24,973
100.0
288
1.15
2017
2016
26,435
26,318
99.6
2
26,320
99.6
354
1.34
2018
2017
25,924
26,026
100
1
26,027
100.4
199
0.77
2019
2018
26,556
26,442
99.6
4
26,446
99.6
202
0.76
2020
2019
26,360
26,106
99.0
1
26,107
99.0
1,096
4.16
2021
2020
26,263
26,289
100.1
239
26,528
101.0
611
2.33
(1) Excludes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
171
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities Business -
General
Tax Increment
Tax Increment
General
Fiscal
Obligation
Financing
Financing
Other Loans
Obligation
Year
Bonds
Bonds
Notes
Payable
Bonds
2012
$ 53,087,811
$ 22,258,283
$ 1,767,664
$ 4,735,714 $
35,108,003
2013
56,517,165
21,920,537
1,235,903
5,638,871
34,921,131
2014
52,568,648
21,556,435
1,030,036
5,541,428
32,738,862
2015
59,614,941
21,165,946
811,608
5,444,285
45,868,394
2016
58,869,812
20,764,818
625,429
5,347,142
46,806,473
2017
53,800,719
20,333,690
451,763
4,650,000
44,487,023
2018
48,833,498
19,867,562
255,881
4,067,700
41,979,910
2019
46,917,828
19,366,434
176,054
3,984,111
39,246,002
2020
41,985,513
18,825,306
91,860
3,899,294
36,220,856
2021
41,745,365
18,244,178
46,195
3,748,361
34,104,175
Note:
Details regarding the City's outstanding debt can be found in the notes to the financial
statements.
2016 data changed to
include premium and discounts in the outstanding computation.
(1) Population
and personal income data can be found in Table 18.
* Personal
Income unavailable at report date
172
TABLE 9
Type Activities
Capital
Other
Total
Percentage of
Loan
Revenue
Loans
Primary
Personal
Per
Notes
Bonds
Payable
Government
Income (1)
Capita (1)
$ 61,957,749
$ 6,521,188
$ 331,235
$ 185,767,647
7.1 %
$ 3,223
75,415,431
6,260,299
309,304
202,218,641
7.8
3,508
82,924,949
14,151,437
286,263
210,798,058
8.1
3,657
85,477,970
34,543,432
262,055
253,188,631
10.0
4,393
104,156,549
34,196,999
236,623
271,003,845
9.9
4,637
110,513,944
33,840,566
5,209,900
273,287,605
10.1
4,648
112,765,210
33,474,133
4,181,826
265,425,720
9.1
4,555
111,655,588
33,097,700
3,152,331
257,596,048
8.4
4,446
116,965,647
32,706,767
2,152,331
252,847,074
7.9
4,368
115,011,616
32,304,834
1,088,786
246,293,510
*
4,255
173
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
TABLE 10
Percentage of
Percentage of
General
Taxable
Taxable
Assessed
Assessed
Fiscal
Obligation
Value of
Value of
Value of
Value of
Per
Year
Bonds
Property
Property
Property
Property
Capita
2012
$ 88,196
$ 2,243,474
3.93 %
$ 3,406,186
2.59 %
$ 1,530
2013
91,438
2,337,129
3.91
3,476,638
2.63
1,586
2014
85,308
2,398,151
3.56
3,503,774
2.43
1,480
2015
105,483
2,522,048
4.18
3,686,202
2.86
1,830
2016
105,676
2,508,933
4.21
3,723,003
2.84
1,808
2017
98,288
2,652,700
3.71
3,914,425
2.51
1,672
2018
90,813
2,686,813
3.38
3,931,498
2.31
1,558
2019
86,164
2,765,470
3.12
4,141,732
2.08
1,487
2020
78,206
2,825,245
2.77
4,185,444
1.87
1,351
2021
75,850
2,912,635
2.60
4,378,243
1.73
1,310
*Prior year information has been modified to net GO Bonds with the fund balance in Debt Service.
*General Obligation Bonds are netted with the fund balance in the Debt Service fund.
174
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2021
TABLE 11
Net General
Tax
Tax
Obligation
Increment
Increment Sales Tax
Percentage
Amount
Bonded Debt
Financing
Financing Revenue
Loans Applicable
Applicable to
Jurisdiction Outstanding
Bonds (1)
Notes Bonds
Payable to City
Government
Direct, City of Dubuque, Iowa $ 41,745,365
S 18,244,178
$ 46,195 $ -
S 3,748,362 100.00 %
$ 63,784,100
Overlapping:
Dubuque County 20,405,000 - - - 205,561 73.51 % 15,150,823
Dubuque Community School District - - - - - 70.54 % -
Northeast Iowa Community College 31,800,000 - - - 16,715,000 53.56 % 25,984,634
Total Overlapping 52,205,000 - - - 16,920,561 41,135,457
Total $ 93,950,365 $ 18,244,178 $ 46,195 $ - $ 20,668,923 $ 104,919,557
Source: Dubuque County Auditor, Dubuque Community School District and Northeast Iowa Community College
(1) Excludes sales tax revenue bonds.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of
Dubuque. This process recognizes that, when considering the city's ability to issue and repay long-term debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore respo-
nsible for repaying the debt, of each overlapping government.
175
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2012 2013 2014 2015
Debit limit $ 177,668 $ 181,668 $ 183,621 $ 193,114
Total net debt
applicable to limit
142,551
144,118
131,289 154,643
Legal debit margin
$ 35,117 $
37,550 $
52,332 $ 38,471
Total net debt
applicable to the debt
limit as a percentage
of debt limit
80.23%
79.33%
71.50% 80.08%
176
TABLE 12
2016 2017 2018 2019 2020 2021
$ 196,031 $
207,174 $
209,049 $
221,513 $
239,298
$ 239,298
152,386
141,076
124,926
117,223
109,021
102,256
$ 43,645 $
66,098 $
84,123 $
104,290 $
130,277
$ 137,042
77.74%
68.10%
59.76%
52.92%
45.56%
42.73%
Legal Debt Margin Calculation for Fiscal Year 2021
Estimated actual value
Debt limit - 5% of total actual valuation
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease)
Legal debt margin
$ 4,785,964,957
$ 239,298,248
(122,682,458)
$ 116,615,790
177
CITY OF DUBUQUE, IOWA
REVENUE DEBT COVERAGE
TABLE 13
LAST TEN FISCAL YEARS
( IN THOUSANDS OF DOLLARS)
Gross
Operating
Net Revenue
Current Fiscal Year's
Fiscal Revenues
Expenses
Available For
Debt Service Requirements
Coverage
Year (1)
(2)
Debt Service
Principal
Interest
Total
(3)
WATER UTILITY
2012 $ 6,087 $
5,895 $
192
$ 255
$ 238 $
493
$ 0.39
2013 6,944
5,391
1,553
260
231
491
3.16
2014 7,283
7,384
(101)
432
344
776
(0.13)
2015 7,511
6,322
1,189
275
218
493
2.41
2016 8,508
4,826
3,682
285
211
496
7.42
2017 8,589
4,678
3,911
473
305
778
5.03
2018 8,962
4,989
3,973
489
288
777
5.11
2019 9,160
5,726
3,434
505
345
850
4.04
2020 9,497
5,599
3,898
1,049
371
1,420
2.75
2021 9,684
5,605
4,079
1,235
411
1,646
2.48
STORMWATER UTILITY
2012 3,211
1,497
1,714
231
243
474
3.62
2013 3,194
2,019
1,175
462
268
730
1.61
2014 3,240
1,833
1,407
320
309
629
2.24
2015 3,551
2,162
1,389
331
311
642
2.16
2016 3,948
2,140
1,808
341
301
642
2.82
2017 4,224
2,601
1,623
352
291
643
2.52
2018 4,486
2,374
2,112
363
283
646
3.27
2019 5,062
3,229
1,833
343
273
616
2.98
2020 5,303
1,964
3,339
1,503
711
2,214
1.51
2021 5,194
2,285
2,909
1,039
381
1,420
2.05
SEWAGE DISPOSAL WORKS
2012 7,878
7,018
860
34
1,129
1,163
0.74
2013 8,951
6,113
2,838
1,719
1,443
3,162
0.90
2014 10,083
6,754
3,329
2,326
1,423
3,749
0.89
2015 10,629
6,950
3,679
2,603
1,358
3,961
0.93
2016 12,237
7,702
4,535
2,610
1,435
4,045
1.12
2017 12,475
6,082
6,393
2,652
1,454
4,106
1.56
2018 12,731
6,360
6,371
2,707
1,476
4,183
1.52
2019 12,667
7,013
5,654
2,878
1,429
4,307
1.31
2020 12,777
6,645
6,132
2,946
1,362
4,308
1.42
2021 13,040
7,195
5,845
3,006
1,373
4,379
1.33
(1) Total revenues (including interest).
(2) Total operating expenses exclusive of depreciation.
(3) Coverage is computed by dividing net revenue available for debt service by debt service requirement.
178
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
TABLE 14
Water
Sewer
Gallons
Fiscal Year
Revenue
Revenue
Billed
2012
$ 6,298,768
$ 8,682,927
1,914,175,940
2013
6,701,771
8,472,382
1,945,227,547
2014
7,028,091
9,756,996
1,845,151,329
2015
7,231,393
10,417,833
1,864,028,948
2016
8,159,240
11,772,847
1,883,797,577
2017
8,248,796
12,000,115
1,844,997,668
2018
8,525,072
12,015,480
1,632,426,374
2019
8,636,521
12,266,217
1,750,735,443
2020
8,958,162
12,395,751
1,738,198,948
2021
9,040,349
12,583,458
1,774,274,430
Source: Cash basis receipt ledgers.
*Revenue
includes penalties and investment earnings collected.
New in 2015 - revenue
does not include
sales tax. All years
reflect this
change.
WATER RATE SCHEDULE HISTORY
Steps
Gallons
2021
2020
2019
2018
2017
2016
2015
2014
First
22,440 @
$ 0.00512 $
0.00512
$ 0.00488
$ 0.00474
$ 0.00447
$ 0.00406
$ 0.00387
$ 0.00355
Next
89,760 @
0.00419
0.00419
0.00399
0.00387
0.00365
0.00332
0.00316
0.00290
Next
261,800 @
0.00391
0.00391
0.00372
0.00361
0.00340
0.00309
0.00294
0.00270
Next
374,000 @
0.00345
0.00345
0.00329
0.00280
0.00301
0.00274
0.00261
0.00239
Excess
@
0.00302
0.00302
0.00288
0.00280
0.00264
0.00240
0.00229
0.00210
179
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST TEN FISCAL YEARS
TABLE 15
Fiscal Year
Residential
Commercial
Industrial
Government
Total
2012
20,532
1,902
79
52
22,565
2013
20,753
1,921
80
53
22,807
2014
20,887
1,945
81
68
22,981
2015
20,969
1,968
83
76
23,096
2016
21,157
1,972
84
104
23,317
2017
21,522
2,061
83
114
23,780
2018
20,498
2,019
83
115
22,715
2019
20,523
2,148
80
147
22,898
2020
21,886
1,941
69
138
24,034
2021
22,866
2,010
70
148
25,094
180
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2021
TABLE 16
Percentage of
Percentage of
Water
Total Water
Sewer
Total Sewer
Customer
Receipts
Rank
Receipts
Receipts
Rank
Receipts
Rousselot Inc #155296
$ 333,969
1
3.69 %
Hormel Foods Corporation*
231,764
2
2.56
$ 529,116
1
4.20 %
Prairie Farms Dairy Inc
225,795
3
2.50
Hormel Foods Corporation*
180,147
4
1.99
407,654
2
3.24
APC, Inc.
49,353
5
0.55
Stonehill Nursing Home
47,628
6
0.53
88,425
3
0.70
Finley Hospital
42,592
7
0.47
60,480
7
0.48
Georgia Pacific
41,221
8
0.46
60,760
6
0.48
Yes Companies Exp Fred, LLC
40,776
9
0.45
79,690
4
0.63
IADU Table Mound MHP LLC
33,916
10
0.38
64,535
5
0.51
Alpine Park Community
57,655
8
0.46
Platinum Holdings LLC
50,402
9
0.40
Ronsan Enterprises Inc/Days Inn
4,490
10
0.36
Total Receipts
$ 9,040,349
$ 12,583,458
*Same company, separate accounts. Previously combined several accounts under same business, now listed separately.
181
CITY OF DUBUQUE, IOWA
SALES TAX INCREMENT BONDS
FISCAL YEAR ENDING JUNE 30, 2021
Estimated
Sales Tax
Senior Lien
Increment
Series 2015A
Fiscal
Revenue
Net Debt Service
Year
Receipts*
(1)
2015
* $
2,037,489 $
-
2016
*
2,532,846
-
2017
*
3,945,134
-
2018
*
3,654,915
(762,650)
2019
*
4,207,297
(762,650)
2020
*
4,709,559
(762,650)
2021
*
4,068,763
(762,650)
2022
6,380,938
(762,650)
2023
6,866,198
(2,767,650)
2024
6,956,351
(2,771,000)
2025
6,957,401
(2,768,969)
2026
6,952,046
(2,771,031)
2027
6,952,532
(2,768,719)
2028
6,947,494
(2,768,394)
2029
6,723,750
(2,767,300)
2030
6,250,000
(2,768,800)
2031
4,467,912
(2,766,400)
2032
2,217,912
-
2033
2,250,000
-
* Actual receipts.
Remaining
Revenues After
Senior Lien
Debt Service
2,037,489
2,532,846
3,945,134
2,892,265
3,444,647
3,946,909
3,306,113
5,618,288
4,098,548
4,185,351
4,188,432
4,181,015
4,183,813
4,179,100
3,956,450
3,481,200
1,701,512
2,217,912
2,250,000
(1) Net of capitalized interest and the debt service reserve fund.
(2) Net of capitalized interest.
Second Lien
Series 2014
Net Debt
Service
(2)
(323,100)
(323,100)
(323,100)
(323,100)
(323,100)
(323,100)
(43 8,100)
(1,393,500)
(1,400,500)
(1,344,250)
(1,363,000)
(1,365,000)
(1,365,000)
TABLE 17
Remaining
Revenues
After Second
Lien Debt
Service
2,037,489
2,532,846
3,622,034
2,569,165
3,121,547
3,623,809
2,983,013
5,295,188
3,660,448
2,791,851
2,787,932
2,836,765
2,820,813
2,814,100
2,591,450
3,481,200
1,701,512
2,217,912
2,250,000
182
CITY OF DUBUQUE, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
TABLE 18
Per Capita
Public
Personal
Median
School
Unemployment
Personal
Income
Age
Enrollment
Rate
Year
Population
Income
(1)
(2)
(3)
(4)
2012
57,637
2,453,952,912
42,576
37
10,469
5.2 %
2013
57,637
2,489,053,845
43,185
39
10,513
4.6
2014
57,637
2,560,293,177
44,421
39
10,578
4.4
2015
57,637
2,645,653,574
45,902
38
10,634
3.7
2016
58,436
2,734,454,184
46,794
38
10,588
3.9
2017
58,799
2,717,101,790
46,210
38
10,556
2.9
2018
58,276
2,903,485,148
49,823
37
10,507
2.2
2019
57,941
3,049,782,476
52,636
38
10,459
2.2
2020
57,882
3,196,128,276
55,218
38
10,558
9.1
2021
57,882
*
*
39
10,371
5.4
Data Sources:
(1) U.S. Department of Commerce, Bureau of Economic Analysis.
(2) Greater Dubuque Development Corporation.
(3) Dubuque Community School District.
(4) Iowa Department of Employment Services as of June 30.
* Unavailable at report date.
183
THIS PAGE IS INTENTIONALLY LEFT BLANK
184
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS TABLE 19
CURRENT YEAR AND NINE YEARS AGO
2021 2012
Percentage of
Percentage of
# of
Total City
# of
Total City
Employer
Employees
Rank
Employment (1)
Employees
Rank
Employment (1)
John Deere (2)
2,600
1
4.71 %
2,065
1
3.81 %
Dubuque Community Schools
1,957
2
3.55
1,946
2
3.59
Mercy One Medical Centr
1,410
3
2.55
1,324
3
2.44
Medical Associates
1,061
4
1.92
999
5
1.84
Unity Point Health -Finley Hospital
975
5
1.77
920
6
1.70
Andersen Windows
750
6
1.36
City of Dubuque
737
7
1.34
686
7
1.27
Sedgwick
725
8
1.31
Cottingham & Butler
715
9
1.30
Dubuque Bank & Trust and
Heartland Financial USA,
600
10
1.09
IBM
1,300
4
2.40
Holy Family Catholic Schools
575
8
1.06
Prudential Retirement
550
9
1.01
Eagle Window and Door
550
10
1.01
11,530
20.89 %
10,915
20.15 %
Source: Greater Dubuque Development Corp.
(1) Based on the percentage of total employment for Dubuque area from the U.S. Department of Labor, Bureau of
Labor Statistics.
(2) Located just outside City Limits.
185
CITY OF DUBUQUE, IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2012
2013
2014
2015
Public Safety
Emergency Communications
13.00
13.00
13.00
13.00
Fire
90.00
90.00
90.00
90.00
Police
114.25
115.00
115.08
115.88
Building Services
9.00
9.00
9.24
11.66
Public Works
Public Works
87.42
86.17
86.42
86.42
Engineering
27.00
29.00
29.00
29.00
Health & Social Services
Health Services
4.00
4.00
4.00
4.00
Human Rights
4.00
5.00
5.00
5.00
Cultural and Recreation
Civic Center
0.15
0.15
0.15
0.15
Library
18.00
19.00
19.00
19.00
Park
23.50
23.50
23.50
23.50
Recreation
9.93
9.93
9.93
10.93
Community & Economic Development
Community / Economic Dev
3.00
3.00
4.00
4.00
Housing Services
23.00
25.80
27.00
26.00
Planning Services
8.00
8.00
8.00
8.00
General Government
Airport
12.00
12.00
12.00
12.00
Cable TV
2.00
2.00
2.00
2.00
City Clerk's Office
3.00
3.00
3.00
3.00
City Manager's Office
14.00
15.00
15.00
16.00
Finance
14.00
14.00
14.08
14.88
Legal
5.00
5.00
5.00
5.00
Information Services
7.00
7.50
8.00
8.00
Business Type
Water
25.00
25.00
26.00
26.00
Water & Resource Recovery Center
18.00
18.00
18.00
18.00
Parking
9.00
9.00
9.00
9.00
Transit
6.00
6.00
6.32
8.00
Total
549.25
557.05
561.72
568.42
Source: City Budget Records
Departments with employees who are allocated to more than one function are reflected in the area with largest number of employees.
186
TABLE 20
2016
2017
2018
2019
2020
2021
13.00
14.00
14.00
14.00
15.00
15.00
90.00
90.00
90.00
90.00
91.00
92.00
116.00
116.00
116.00
117.00
118.00
119.00
12.00
12.00
12.00
11.00
11.00
11.00
86.42
86.42
86.42
87.42
87.42
89.42
30.00
30.00
26.06
26.00
27.00
28.00
4.00
4.00
4.00
4.00
5.00
6.00
5.00
5.00
5.00
5.00
5.00
4.00
0.15
0.15
0.15
0.15
0.15
0.15
19.00
19.00
19.00
19.00
19.00
20.00
23.50
22.50
22.50
22.50
22.50
22.50
11.93
11.93
11.93
11.93
11.93
11.93
2.00
2.00
3.00
3.00
3.00
3.00
21.00
25.00
25.00
23.52
27.00
29.00
8.00
8.00
8.00
8.00
8.00
8.00
12.00
12.00
12.00
12.00
12.00
12.00
2.00
2.00
2.00
2.00
2.00
2.00
3.00
3.00
3.00
3.00
3.00
3.00
16.00
16.00
17.00
17.50
15.50
18.00
15.00
15.00
15.00
14.00
19.00
19.00
5.00
5.00
4.00
4.00
4.00
5.00
8.00
8.00
8.00
8.00
8.00
8.00
25.00
25.00
25.00
24.00
25.00
25.00
17.00
17.00
17.00
15.00
15.00
15.00
9.00
8.00
7.00
-
-
-
13.00
13.00
14.00
20.00
23.00
23.00
567.00
570.00
567.06
562.02
577.50
589.00
187
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY
FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal -
2012
2013
2014
2015
Public Safety
Police
Physical arrests
6,319
6,106
5,532
3,767
Traffic violations
11,836
12,089
8,959
7,354
Parking violations
34,910
35,516
36,768
37,635
Fire
Number of calls answered
5,307
4,792
5,165
5,603
Inspections conducted
589
512
471
791
Sewer
Sewage system
Daily average treatment in gallons
7,817,000
10,987,000
7,091,000
7,237,000
Maximum daily capacity of treatment plant in gallons
23,240,000
23,240,000
24,500,000
24,500,000
Water systems
Daily average consumption in gallons
7,226,000
6,953,000
7,235,000
6,956,000
Maximum daily capacity of plant in gallons
18,000,000
18,000,000
18,000,000
18,000,000
Refuse (Municipal Collection)
Tonnage
11,180
10,535
10,311
10,690
Sources: Various City Departments.
Statistics updated for fiscal year 2017
188
TABLE 21
Year
2016 2017 2018 2019 2020 2021
3,397
3,238
3,519
3,403
2,830
2,493
9,058
9,063
9,415
8,369
7,156
6,276
38,880
33,953
32,857
25,685
18,044
20,428
5,750
5,990
5,949
6,058
6,304
7,277
993
1,649
1,675
1,232
1,260
296
7,016,000 7,377,000 7,900,000 7,930,000 8,730,000 6,682,013
24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000
7,068,184 7,200,000 6,917,000 6,133,000 6,210,000 6,390,000
18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 13,000,000
11,098 11,284 11,481 11,569 12,212 13,380
189
CITY OF DUBUQUE, IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
Public safety
Police
Stations
Patrol units
Fire
Stations
Aerial trucks
Public works
Streets
Miles (1)
Street lights (1)
Health and social services
Hospital
Number of patient beds
Cultural and recreation
Library
Golf
Parks
Acreage
Recreation
Civic center
Swimming pools
Softball fields
Baseball fields
Tennis courts
Sewer
Sewage system
Miles of sanitary sewer (1)
Miles of storm sewers (1)
Number of treatment plants
Number of service connectors
Water systems
Miles of water mains
Number of service connectors
Number of city owned fire hydrants
Sources: Various City Departments.
(1) City GIS System
2012
2013
2014
2015
1
1
1
1
22
22
22
22
6
6
6
6
3
3
3
3
328
329
331
333
2,081
2,084
2,110
2,161
2
2
2
2
389
389
389
373
1
1
1
1
1
1
1
1
51
51
51
53
1,001
1,001
1,001
974
1
1
1
1
2
2
2
2
7
7
7
11
1
1
1
20
20
20
20
304
304
307
320
155
141
144
145
1
1
1
1
22,393
22,428
22,888
22,928
320
321
315
318
22,161
22,536
22,702
22,787
2,863
2,879
2,336
2,346
190
TABLE 22
2016
2017
2018
2019
2020
2021
1
1
1
1
1
1
22
22
22
22
22
22
6
6
6
6
6
6
3
3
3
3
3
3
332
336
334
340
331
329
2,162
2,184
2,312
2,436
2,489
2,507
2
2
2
2
2
2
373
373
373
373
373
373
1
1
1
1
1
1
1
1
1
1
1
1
53
53
53
53
53
53
974
974
974
974
985
985
1
1
1
1
1
1
2
2
2
2
2
2
11
11
11
10
10
10
1
1
1
1
1
1
20
20
20
16
16
16
322
326
321
332
333
308
147
152
156
158
151
160
1
1
1
1
1
1
23,119
23,343
23,423
23,488
23,601
22,299
329
337
370
410
325
293
22,970
23,443
23,546
23,605
23,695
23,770
2,380
2,450
2,973
2,539
2,553
2,596
191
CITY OF DUBUQUE, IOWA
RETAIL SALES
LAST TEN CALENDAR YEARS
Taxable
Number of
Year
Retail Sales
Businesses
2012
$ 1,060,222,499
1,993
2013
1,057,837,212
2,008
2014
1,240,664,593
3,337
2015
1,305,893,119
3,347
2016
1,316,561,626
2,997
2017
1,324,993,666
2,971
2018
1,323,052,623
2,970
2019
1,353,208,250
3,353
2020
1,331,820,839
3,375
2021
Data Sources:
Iowa Department of Revenue
* Unavailable at report date
TABLE 23
192
Compliance Section
June 30, 2021
City of Dubuque, Iowa
193
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194
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CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Internal Control Over Financial Reporting and on
Compliance and Other Matters Based on an Audit of Financial Statements Performed
in Accordance with Government Auditing Standards
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business -type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of Dubuque, Iowa, (City) as of and for
the year ended June 30, 2021, and the related notes to the financial statements, which collectively
comprise the City's basic financial statements, and have issued our report thereon dated December 22,
2021.
The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented component unit
which was audited by other auditors, were not audited in accordance with Government Auditing
Standards, and accordingly, this report does not extend to those financial statements.
The financial statements of Dubuque Convention and Visitors Bureau, a discretely presented component
unit, were not audited in accordance with Government Auditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal
control over financial reporting (internal control) as a basis for designing audit procedures that are
appropriate in the circumstances for the purpose of expressing our opinions on the financial statements,
but not for the purpose of expressing an opinion on the effectiveness of the City's internal control.
Accordingly, we do not express an opinion on the effectiveness of the City's internal control.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a
combination of deficiencies, in internal control, such that there is a reasonable possibility that a material
misstatement of the entity's financial statements will not be prevented, or detected and corrected on a
timely basis. A significant deficiency is a deficiency, or a combination of deficiencies, in internal control
that is less severe than a material weakness, yet important enough to merit attention by those charged
with governance.
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Our consideration of internal control was for the limited purpose described in the first paragraph of this
section and was not designed to identify all deficiencies in internal control that might be material
weaknesses or significant deficiencies and therefore, material weaknesses or significant deficiencies may
exist that have not been identified. Given these limitations, during our audit we did not identify any
deficiencies in internal control that we consider to be material weaknesses. We did identify a certain
deficiency in internal control, described in the accompanying schedule of findings and questioned costs
as item 2021-001 that we consider to be a significant deficiency.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts, and grant agreements, noncompliance with which could have a direct and
material effect on the financial statements. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards. However, we noted certain immaterial instances of
non-compliance which are described in Part IV of the accompanying schedule of findings and questioned
costs.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2021 are based exclusively on knowledge obtained from procedures performed during our
audit of the financial statements of the City and are reported in Part IV of the accompanying schedule of
findings and questioned costs. Since our audit was based on tests and samples, not all transactions that
might have had an impact on the comments were necessarily audited. The comments involving
statutory and other legal matters are not intended to constitute legal interpretations of those statutes.
City's Responses to Findings
The City's responses to the findings identified in our audit are described in the accompanying schedule
of findings and questioned costs. The City's responses were not subjected to the auditing procedures
applied in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and
compliance and the results of that testing, and not to provide an opinion on the effectiveness of the
City's internal control or on compliance. This report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control and
compliance. Accordingly, this communication is not suitable for any other purpose.
Dubuque, Iowa
December 22, 2021
196
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CPAs & BUSINESS ADVISORS
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on Internal
Control Over Compliance Required by the Uniform Guidance
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque, Iowa's (City) compliance with the types of compliance
requirements described in the OMB Compliance Supplement that could have a direct and material effect
on each of the City's major federal programs for the year ended June 30, 2021. The City's major federal
programs are identified in the summary of auditor's results section of the accompanying schedule of
findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with federal statutes, regulations, and the terms and
conditions of its federal awards applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on the compliance for each of the City's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States; and the audit requirements of Title 2 U.S. Code
of Federal Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit
Requirements for Federal Awards (Uniform Guidance). Those standards and the Uniform Guidance
require that we plan and perform the audit to obtain reasonable assurance about whether
noncompliance with the types of compliance requirements referred to above that could have a direct
and material effect on a major federal program occurred. An audit includes examining, on a test basis,
evidence about the City's compliance with those requirements and performing such other procedures as
we considered necessary in the circumstances.
We believe that our audit provides a reasonable basis for our opinions on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
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Opinion on Each Major Federal Program
In our opinion, the City complied, in all material respects, with the types of compliance requirements
referred to above that could have direct and material effect on each of its major federal programs for
the year ended June 30, 2021.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the types of compliance requirements referred to above. In planning and performing
our audit of compliance, we considered the City's internal control over compliance with the types of
requirements that could have a direct and material effect on each major federal program to determine
the auditing procedures that are appropriate in the circumstances for the purpose of expressing an
opinion on compliance for each major federal program and to test and report on internal control over
compliance in accordance with the Uniform Guidance, but not for the purpose of expressing an opinion
on the effectiveness of internal control over compliance. Accordingly, we do not express an opinion on
the effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their
assigned functions, to prevent, or detect and correct, noncompliance with a type of compliance
requirement of a federal program on a timely basis. A material weakness in internal control over
compliance is a deficiency, or a combination of deficiencies, in internal control over compliance, such
that there is a reasonable possibility that material noncompliance with a type of compliance
requirement of a federal program will not be prevented, or detected and corrected, on a timely basis. A
significant deficiency in internal control over compliance is a deficiency, or a combination of deficiencies,
in internal control over compliance with a type of compliance requirement of a federal program that is
less severe than a material weakness in internal control over compliance, yet important enough to merit
attention by those charged with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be material weaknesses or significant deficiencies. We did not identify any
deficiencies in internal control over compliance that we consider to be material weaknesses. However,
material weaknesses may exist that have not been identified.
The purpose of the report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
the Uniform Guidance. Accordingly, this report is not suitable for any other purpose.
Dubuque, Iowa
December 22, 2021
198
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2021
Federal Financial
Pass -through
Assistance Listing /
Entity
Amounts Passed -
Federal Gra ntor/Pass-Th rough
Federal CFDA
Identifying
Through to
Grantor/Program or Cluster Title
Number
Number
Expenditures
Subrecipients
U.S. Department of Agriculture
Direct program
Soil and Water Conservation
10.902
$ 15,528
$
Environmental Quality Incentives Program
10.912
26,961
Conservation Stewardship Program
10.924
6,563
Total U.S. Department of Agriculture
49,052
U.S. Department of Housing and Urban Development
Direct program
CDBG - Entitlement Grants Cluster
Community Development Block
Grants/Entitlement Grants
14.218
917,261
123,640
COVID-19 - Community Development Block
Grants/Entitlement Grants
14.218
300,019
-
Total CDBG - Entitlement Grants Cluster
1,217,280
123,640
Continuum of Care Program
14.267
87,211
-
Pass -through program from
Iowa Economic Development Authority
CDBG - Disaster Recovery Grants - Pub. L. No. 113-2 Cluster
National Resiliency Disaster Recovery Competition
14.272
13NDRH001/13NDRI011
7,113,695
Direct program
Section 8 Project -Based Cluster
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation
14.856
74,662
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
14.871
574,268
Section 8 Housing Choice Vouchers
14.871
5,285,751
Section 8 Housing Choice Vouchers
14.871
2,615
COVID-19 - Section 8 Housing Choice Vouchers
14.871
60,666
Total Housing Voucher Cluster
5,923,300
Family Unification Program (FUP)
14.880
53,241
Family Self-Suffiency Program
14.896
69,051
Lead -Based Paint Hazard Control in
Privately -Owned Housing
14.900
827,335
Total U.S. Department of Housing and Urban Development
15,365,775
123,640
U.S. Department of Interior
Pass -through program from
Iowa Department of Cultural Affairs
Historic Preservation Fund Grants -In -Aid
15.904
202011-8903
10,000
Historic Preservation Fund Grants -In -Aid
15.904
2019-04
6,808
Historic Preservation Fund Grants -In -Aid
15.904
2019-03
1,121
Total U.S. Department of Interior
17,929
199
Federal Gra ntor/Pass-Th rough
Grantor/Program or Cluster Title
U.S. Department of Justice
Direct program
COVID-19 - Coronavirus Emergency Supplemental
Funding Program
Pass -through program from
Iowa Department of Justice
Violence Against Women Formula Grants
Violence Against Women Formula Grants
Direct program
Bulletproof Vest Partnership Program
Pass -through program from
Iowa Department of Justice
Public Safety Partnership and Community
Policing Grants
Public Safety Partnership and Community
Policing Grants
Public Safety Partnership and Community
Policing Grants
Direct program
Edward Byrne Memorial Justice
Assistance Grant Program
Pass -through program from
Dubuque County Sheriff's Office
Edward Byrne Memorial Justice
Assistance Grant Program
Total U.S. Department of Justice
U.S. Department of Transportation
Direct program
Airport Improvement Program
COVID-19 - Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Highway Planning and Construction Cluster
Pass -through program from
Iowa Department of Transportation
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Total Highway Planning and Construction Cluster
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2021
Federal Financial Pass -through
Assistance Listing/ Entity
Federal CFDA Identifying
Number Number
16.034
Amounts Passed -
Through to
Expenditures Subredpients
$ 66,271 $
16.588 2020-WF-AX-0024 1,860
16.588 VW-20-41-LE 105
1,965
16.607 3,593
16.710 18-CAM P-05 1,324
16.710 18-COPS-HEROIN-02 1,803
16.710 19-COPS-HEROIN-02 3,490
6,617
16.738 6,978
16.738 18-JAG-343653 31,650
38,628
117,074
20.106
1,460,981
20.106
346,543
20.106
182,940
20.106
67,755
20.106
3,868
2,062,087
20.205
EDP-2100(695)-7Y-31
35,520
20.205
HDP-2100 (695)--7Y-31
1,025,839
20.205
STP-A-2100(688)-86-31
4,729
20.205
STP-U-2100(693)-70-31
33,295
1,099,383
200
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2021
Federal Financial
Pass -through
Assistance Listing /
Entity
Amounts Passed -
Federal Grantor/Pass-Through
Federal CFDA
Identifying
Through to
Grantor/Program or Cluster Title
Number
Number
Expenditures Subrecipients
U.S. Department of Transportation (continued)
Federal Transit Cluster
Direct program
COVID-19-Federal Transit -Formula Grants
20.507
$ 1,116,274 $
COVID-19 - Federal Transit - Formula Grants
20.507
2,466,445
Federal Transit - Formula Grants
20.507
248
3,582,967
Buses and Bus Facilities Formula, Competitive, and
Low or No Emissions Programs
20.526
129,977
Total Federal Transit Cluster
3,712,944
Highway Safety Cluster
Iowa Department of Public Safety
State and Community Highway Safety
20.600
PAP 20-402-MOOP
2,741
State and Community Highway Safety
20.600
PAP 21-402-MOAL
4,938
Total Highway Safety Cluster
7,679
Total U.S. Department of Transportation
6,882,093
U.S. Deprartment of the Treasury
Pass -through program from
Iowa Department of Revenue
Covid-19- Coronavirus Relief Fund
21.019
00399
1,375,656
Environmental Protection Agency
Direct program
Brownsfields Assessment and Cleanup
Cooperative Agreements
66.818
16,079
Brownsfields Assessment and Cleanup
Cooperative Agreements
66.818
45,154
Total Environmental Protection Agency
61,233
U.S. Department of Health and Human Services
Direct program
COVID-19 - Provider Relief Fund
93.498
40,009
Corporation for National and Community Service
Pass -through program from
Iowa Commission on Volunteers
AmeriCorps
94.006
19-AC-10
35,533
AmeriCorps
94.006
19-AF-05
22,227
AmeriCorps
94.006
20-AC-10
178,918
AmeriCorps
94.006
20-AF-05
93,664
330,342
Volunteer Generation Fund
94.021
21-VGF-12
13,246
Total Corporation for National and Community Service
343,588
U.S. Department of Homeland Security
Direct Program
COVID-19 - Disaster Grants - Public Assistance
(Presidentially Declared Disasters)
Assistance to Firefighters Grant
Total U.S. Department of Homeland Security
Total
97.036 309,816
97.044 27,273
337,089 -
$ 24,589,498 $ 223,640
201
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2021
Note 1- Basis of Presentation
The accompanying schedule of expenditures of federal awards (the schedule) includes the federal award activity
of the City of Dubuque, Iowa, (the City) under programs of the federal government for the year ended June 30,
2021. The information is presented in accordance with the requirements of Title 2 U.S. Code of Federal
Regulations Part 200, Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal
Awards (Uniform Guidance). Because the schedule presents only a selected portion of the operations of the City,
it is not intended to and does not present the financial position, changes in net position, fund balance, or cash
flows of the City.
Note 2 - Significant Accounting Policies
Expenditures reported in the schedule are reported on the modified accrual basis of accounting. Such
expenditures are recognized following the cost principles contained in the Uniform Guidance, wherein certain
types of expenditures are not allowable or are limited as to reimbursement. Federal financial assistance
provided to a subrecipient is treated as an expenditure when it is paid to the subrecipient.
Note 3 - Indirect Cost Rate
The City has not elected to use the 10% de minimis cost rate.
202
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021
Part I: Summary of the Independent Auditor's Results:
iIi<1_�i<L�ll_L�iL�hluhl►i�'
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified No
Significant deficiencies identified not
considered to be material weaknesses Yes
Noncompliance material to financial statements noted?
No
FEDERAL AWARDS
Internal control over major programs:
Material weaknesses identified
No
Significant deficiencies identified not
considered to be material weaknesses
None reported
Type of auditor's report issued on compliance for major programs:
Unmodified
Any audit findings disclosed that are required to be reported in
accordance with Uniform Guidance 2 CFR 200.516:
No
Identification of major programs:
Federal Financial
Assistance Listing/
Name of Federal Program
CFDA Number
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
14.871
Lead -Based Paint Hazard Control in
Privately -Owned Housing
14.900
Highway Planning and Construction Cluster
Highway Planning and Construction
20.205
Federal Transit Cluster
Federal Transit - Formula Grants
20.507
Buses and Bus Facilities Formula, Competitive, and Low or No Emissions
Programs
20.526
Coronavirus Relief Fund
21.019
Dollar threshold used to distinguish between type A
and type B programs:
$750,000
Auditee qualified as low -risk auditee?
No
203
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021
Part II: Findings related to Financial Statements
Significant Deficiency
2021-001 Significant Audit Adjustments
Criteria —A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles.
Condition — During the course of our engagement, we proposed significant audit adjustments to
intergovernmental receivables, unavailable revenues, and the schedule of expenditures of federal
awards.
Cause —The City's existing internal controls over intergovernmental receivables, unavailable
revenues, and the schedule of expenditures of federal awards assets are limited.
Effect —The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendation — We recommend the City increase review procedures over intergovernmental
receivables, unavailable revenues, and the schedule of expenditures of federal awards.
Views of Responsible Officials — We agree with the auditor's comments. The City is in the process of
implementing a new Enterprise Resource Planning (ERP) system, which will go live July 1, 2022. The
new ERP system will have better management and controls over accounts payable, grants,
accounts receivable, unearned revenue, and assets. The current ERP system lacks functionality and
the procedures related to accounts payable, grants, accounts receivable, unearned revenue, and
capital assets are all manual and compiled by reviewing invoices and receipts and compiling the
information into spreadsheets.
Part III: Findings and Questioned Costs for Federal Awards
There were no findings and questioned costs to report.
204
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021
Part IV: Other Findings Related to Required Statutory Reporting
2021-IA-A Certified Budget — Disbursements during the year ended June 30, 2021 did not exceed the budget
by function.
2021-IA-B Questionable Expenditures— We noted no expenditures that we believe may not meet the
requirements of public purpose as defined in an Attorney General's opinion dated April 25, 1979.
2021-IA-C
2021-IA-D
2021-IA-E
2021-IA-F
Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
Business Transactions— Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and
Business Connection
Mike Kerth, City employee, spouse is
co-owner of Steve's Ace Hardware
Gina Hodgson, City employee,
spouse is Bob Hodgson
Susan Faber, City Council Member
is owner of Magoo's Pizza
Transaction
Description
Supplies
Crop Cover
Services
Amount
$ 10,617
2,400
210
In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transactions with Gina Hodgson
and Susan Faber do not appear to represent conflict of interest since the total transaction was less
than $6,000 during the fiscal year. The transactions with Mike Kerth may represent conflicts of
interest since they were not entered into through competitive bidding in accordance with Chapter
362.5(3)(d) of the Code of Iowa.
Restricted Donor Activity— No transactions were noted between the City, City officials, City
employees, and restricted donors in compliance with Chapter 68B of the Code of Iowa.
Bond Coverage — Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to ensure the coverage
is adequate for current operations.
205
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2021
Part IV: Other Findings Related to Required Statutory Reporting (continued)
2021-IA-G Council Minutes— No transactions were found that we believe should have been approved in the
Council minutes but were not.
2021-IA-H Deposits and Investments— No instances of non-compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were
noted.
2021-IA-1 Revenue Debt — No instances of non-compliance with the provisions of the Sewage Disposal
Works, Water Utility, or Stormwater Utility revenue debt resolutions were noted.
2021-IA-J Annual Urban Renewal Report —The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1. However, we noted
instances in which TIF debt balances did not reconcile with City records.
Recommendation —The City should implement additional preparation and review procedures
relating to the Annual Urban Renewal Report.
Response — We agree with the auditor's comments. The following action will be taken to improve
the situation. The annual TIF Debt Certification to the County and the Annual Urban Renewal
Report will be prepared at the same time. A reconciliation will be done between both reports prior
to submittal.
2021-IA-K Tax Increment Financing — The Special Revenue Tax Increment Financing Fund properly disbursed
payments for TIF loans and rebates. However, we noted instances in which TIF debt balances did
not reconcile with City records.
Recommendation —The City should implement additional preparation and review procedures
relating to the annual TIF Debt Certification to the County.
Response —Additional staff will be trained on preparing the Tax Increment Financing certification
of indebtedness so that an internal review can take place prior to submitting the report to
Dubuque County.
2021-IA-L Solid Waste Tonnage Fees Retained — No instances of non-compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 455B.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
2021-IA-M Financial Assurance —The Dubuque Metropolitan Area Solid Waste Agency, a component unit of
the City, has demonstrated financial assurance for closure and postclosure care costs by
establishing a local government dedicated fund as provided in 567-113.14(6) of the Iowa
Administrative Code.
206
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CPAs & BUSINESS ADVISORS
December 22, 2021
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the financial statements of the City of Dubuque, Iowa (City) as of and for the year ended
June 30, 2021, and have issued our report thereon dated December 22, 2021. We did not audit the financial
statements of Dubuque Initiatives and Subsidiaries (presented as a discretely presented component unit).
Those financial statements were audited by other auditors whose report thereon has been furnished to us,
and our opinion, insofar as it relates to the amounts included for Dubuque Initiative and Subsidiary is based
solely on the reports of the other auditors. Professional standards require that we advise you of the following
matters relating to our audit.
The financial statements of Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors
Bureau, discretely presented component units, were not audited in accordance with Government Auditing
Standards, and accordingly, this report does not extend to those financial statements.
Our Responsibility in Relation to the Financial Statement Audit under Generally Accepted Auditing
Standards and Government Auditing Standards and our Compliance Audit under the Uniform Guidance
As communicated in our letter dated June 8, 2021, our responsibility, as described by professional standards,
is to form and express an opinion about whether the financial statements that have been prepared by
management with your oversight are presented fairly, in all material respects, in accordance with accounting
principles generally accepted in the United States of America and to express an opinion on whether the City
complied with the types of compliance requirements described in the OMB Compliance Supplement that
could have a direct and material effect on each of the City's major federal programs. Our audit of the financial
statements and major program compliance does not relieve you or management of its respective
responsibilities.
Our responsibility, as prescribed by professional standards, is to plan and perform our audit to obtain
reasonable, rather than absolute, assurance about whether the financial statements are free of material
misstatement. An audit of financial statements includes consideration of internal control over financial
reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity's internal control over financial reporting.
Accordingly, as part of our audit, we considered the internal control of the City solely for the purpose of
determining our audit procedures and not to provide any assurance concerning such internal control.
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Our responsibility, as prescribed by professional standards as it relates to the audit of the City's major federal
program compliance, is to express an opinion on the compliance for each of the City's major federal programs
based on our audit of the types of compliance requirements referred to above. An audit of major program
compliance includes consideration of internal control over compliance with the types of compliance
requirements referred to above as a basis for designing audit procedures that are appropriate in the
circumstances and to test and report on internal control over compliance in accordance with the Uniform
Guidance, but not for the purpose of expressing an opinion on the effectiveness of internal control over
compliance. Accordingly, as a part of our major program compliance audit, we considered internal control over
compliance for these purposes and not to provide any assurance on the effectiveness of the City's internal
control over compliance.
We are also responsible for communicating significant matters related to the audit that are, in our professional
judgment, relevant to your responsibilities in overseeing the financial reporting process. However, we are not
required to design procedures for the purpose of identifying other matters to communicate to you.
We have provided our comments regarding internal controls during our audit in our Independent Auditor's
Report on Internal Control over Financial Reporting and on Compliance and Other Matters Based on an Audit of
Financial Statements Performed in Accordance with Government Auditing Standards dated December 22, 2021.
We have also provided our comments regarding compliance with the types of compliance requirements referred
to above and internal controls over compliance during our audit in our Independent Auditor's Report on
Compliance with Each Major Federal Program and Report on Internal Control Over Compliance Required by the
Uniform Guidance dated December 22, 2021.
Planned Scope and Timing of the Audit
We conducted our audit consistent with the planned scope and timing we previously communicated to you.
Compliance with All Ethics Requirements Regarding Independence
The engagement team, others in our firm, as appropriate, our firm, and other firms utilized in the engagement,
if applicable, have complied with all relevant ethical requirements regarding independence.
Qualitative Aspects of the Entity's Significant Accounting Practices
Significant Accounting Policies
Management has the responsibility to select and use appropriate accounting policies. A summary of the
significant accounting policies adopted by the City is included in Note 1 to the financial statements. As described
in Note 1 and 18, the City changed accounting policies related to accounting for fiduciary activities to adopt the
provisions of GASB Statement No. 84, Fiduciary Activities. Accordingly, the accounting change has been
retrospectively applied to the financial statements beginning July 1, 2020. No matters have come to our
attention that would require us, under professional standards, to inform you about (1) the methods used to
account for significant unusual transactions and (2) the effect of significant accounting policies in controversial
or emerging areas for which there is a lack of authoritative guidance or consensus.
Significant Accounting Estimates
Accounting estimates are an integral part of the financial statements prepared by management and are based
on management's current judgments. Those judgments are normally based on knowledge and experience about
past and current events and assumptions about future events. Certain accounting estimates are particularly
sensitive because of their significance to the financial statements and because of the possibility that future
events affecting them may differ markedly from management's current judgments.
The most sensitive accounting estimates affecting the financial statements are health insurance and worker's
compensation liabilities, total OPEB liability, net pension liability, a landfill closure and post -closure liability.
Management's estimate of incurred but not reported health insurance and workers' compensation
liabilities are based on third -party administrator's calculations and estimates. We evaluated the key
factors and assumptions used to develop incurred but not reported liabilities in determining that they
are reasonable in relation to the financial statements taken as a whole.
Management's estimate of total OPEB liability, related deferred outflows of resources and deferred
inflows of resources, and OPEB expense are based on a calculation of actuarially determined
contributions for health insurance benefits. We evaluated they key factors and assumptions used to
develop other postemployment benefits liability in determining that it is reasonable in relation to the
financial statements taken as a whole.
Management's estimates of the net pension liability, pension related deferred outflows of resources and
deferred inflows of resources, and pension expense are based on plan level actuarial reports, allocated
to the City using annual employer contributions. We evaluated the key factors and assumptions used to
develop the pension related balances in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management's estimate of the landfill closure and post -closure care liability is based on third- party
engineering cost studies and capacity estimates. We evaluated the key factors and assumptions used to
develop the landfill closure and post -closure care liability and determined that it is reasonable in relation
to the basic financial statements taken as a whole.
Financial Statement Disclosures
Certain financial statement disclosures involve significant judgment and are particularly sensitive because of
their significance to financial statement users. The most sensitive disclosures affecting the City's financial
statements relate to net pension liability and total OPEB liability.
Significant Difficulties Encountered during the Audit
We encountered no significant difficulties in dealing with management relating to the performance of the audit.
Uncorrected and Corrected Misstatements
For purposes of this communication, professional standards require us to accumulate all known and likely
misstatements identified during the audit, other than those that we believe are trivial, and communicate them
to the appropriate level of management. Further, professional standards require us to also communicate the
effect of uncorrected misstatements related to prior periods on the relevant classes of transactions, account
balances or disclosures, and the financial statements as a whole. There were no uncorrected financial
misstatements identified.
The following misstatements, which are not considered material, that we identified as a result of our audit
procedures were brought to the attention of, and corrected by, management:
uity Increase (Decrease)
Governmental/
Fund Business -type
General Fund
To increase unavailable revenue $ (304,235) $
Community Development Fund
To increase intergovernmental receivables and
unavailable revenues
177,101
The adjustments above also resulted in a $177,101 increase in program expenditures within the schedule of
expenditures of federal awards.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter,
whether or not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter,
which could be significant to the financial statements or the auditor's report. No such disagreements arose
during the course of the audit.
Representations Requested from Management
We have requested certain written representations from management that are included in the management
representation letter dated December 22, 2021.
Management's Consultations with Other Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters. Management informed us that, and to our knowledge, there were no consultations with other
accountants regarding auditing and accounting matters.
Other Significant Matters, Findings, or Issues
In the normal course of our professional association with the City, we generally discuss a variety of matters,
including the application of accounting principles and auditing standards, business conditions affecting the
entity, and business plans and strategies that may affect the risks of material misstatement. None of the matters
discussed resulted in a condition to our retention as the City's auditors.
4
Other Information in Documents Containing Audited Financial Statements
Pursuant to professional standards, our responsibility as auditors for other information in documents containing
the City's audited financial statements does not extend beyond the financial information identified in the audit
report, and we are not required to perform any procedures to corroborate such other information.
However, in accordance with such standards, we will review the information inputted into the data collection
form and will consider whether such information, or the manner of its presentation, is materially consistent with
the financial statements.
Our responsibility also includes communicating to you any information which we believe is a material
misstatement of fact. Nothing has come to our attention that caused us to believe that such information, or its
manner of presentation, is materially inconsistent with the information, or manner of its presentation,
appearing in the financial statements.
Modification of the Auditor's Report
We have made the following modification to our auditor's report.
Change in Accounting Principle
As discussed in Notes 1 and 18 to the financial statements, the City has adopted the provisions of GASB
Statement No. 84, Fiduciary Activities, which has resulted in a restatement of the net position as of July 1, 2020.
Our opinions are not modified with respect to this matter.
This report is intended solely for the information and use of the Mayor, City Council, and management of the
City of Dubuque, Iowa, and is not intended to be and should not be used by anyone other than these specified
parties.
Sincerely,
EIDE BAILLY LLP
Dubuque, Iowa
Y ti
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t
CITY OF DUBUQUE
AUDIT PRESENTATION TO THE CITY COUNCIL
FOR YEAR ENDED JUNE 30, 2021
:w
FISCALYEAR202:LANNUAL E;aeR,;uy.
COMPREHENSIVE FINANCIAL REPORT
• Financial audit performed annually
• Required by the Municipal Oversight Law and governmental auditing standards
• Examination of City's financial records
• Conducted in accordance with generally accepted auditing standards
• Report rendered by an independent auditor of how appropriate financial
statements depict its financial condition and results of its operations
• Performed by persons not in any way affiliated with the City in order to ensure
complete objectivity and professionalism
TYPES OF INDEPENDENT AUDITOR'S
OPINIONS
EideBailly
Unmodified Opinion —The statements present fairly the financial position and results of
operations of the government unit on a basis consistent with prior years. This is the so called
"clean opinion."
Modified
Opinion —The opinion is like the
above but with certain
exceptions to generally
accepted
accounting principles which are
clearly explained in the
opinion.
Adverse Opinion —This "bad opinion" states that the financial statements do not fairly
present the financial position and the results of operation of the governmental unit. The
opinion would include the reasons for the adverse opinion.
Disclaimer of Opinion —The auditor cannot render an opinion usually because the financial
records are incomplete or the scope of the audit is too restrictive.
COMPLIANCEAUDIT
EideBailly
Auditors perform compliance audits in which the auditor reviews operations in terms of
compliance with various laws and regulations regarding grants and financial operations.
Compliance audits have always been a vital part of governmental audits.
BENEFITS OFAN AUDIT
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• The audit provides a professional opinion of the financial condition of the government unit.
• Audited financial statements provide reliable financial information to evaluate the financial
health and stability of the governmental unit.
• Recommendations to strengthen and improve the management and efficiency of the
governmental unit.
• Ensure that the local government is in compliance with all applicable legal provisions.
AUDIT RESULTS EideBailly,,
• Auditors' Opinion on Financial Statements — Unmodified
• Sometimes referred to as a "clean" audit. This is the highest level of assurance auditors can
provide over financial statements.
• Financial Statements are materially accurate
• No disagreements with auditors
• All proposed audit adjustments were made
GOVERNMENT=
WIDE SUMMARY
• Governmental activities increased the City's net
position by $13.7M.
• Operating and capital grants and contributions
increased by $10M
• Overall revenues increased by $12.5M, while
expenditures decreased by $2.2M (excluding
transfers out to business type activities)
GOVERNMENT=
WIDE SUMMARY
• Business -type activities increased the City's net
position by $25.2M
• Total expenses increased by $800k.
• Operating and capital grants and contributions
saw an increase of $6.9m.
0
GENERAL FUND REVENUE
The General Fund is the City's primary
operating fund. It accounts for all financial
resources of the general government,
except those required to be accounted for
in another fund.
Interest, Fines &
Forfei
Charges for Service
20%
Intergove
Gaming, 12%
3%
r1
TAX REVENUE
3YEAR HISTORY
40,000
35,000
30,000
N
25,000
C6
N
0 20,000
15,000
10,000
5,000
$36,518
`IP41
aoxf
$ 35,405
`z0W
$ 34,821
2021
2020
2019
Property Tax
$23,052
$22,633
$22,288
Franchise Fee
$4,921
$4,976
$5,072
Local Option Sales Tax
$5,664
$4,826
$4,470
Hotel/Motel
$2,036
$2,118
$2,113
Backfill
Pari-Mutuel
$810
$35
$831
$21
$851
$27 0
GENERAL FUND REVENUE
3YEAR HISTORY
$ 60, 000
$50,000
O
O
O $40,000
C
L
cv
p $30,000
n
$20,000
$10,000
2021
$67,869
2020
$60,108
2019
Taxes
$
36,518
$
35,405
$ 34,821
Licenses & Permits
$
1,984
$
1,497
$ 1,620
Intergovernmental
$
3,535
$
1,886
$ 1,783
Charges for Services
$
13,396
$
10,586
$ 12,216
Interest, Fines & Forfeitures, & Other
$
4,359
$
3,341
$ 2,656
Gaming
$
8,077
$
7,394
$ 8,709
$61,805
�11
GENERAL FUND
EXPENDITURES
Community &
Economic
Development, 7
Culture & Recreation,
19%
Debt Service, 0%
General Government,
Services, 2% Public Works, 9%
Capital Projects, 4%
Public Safety, 48%
�12
GENERAL FUND
EXPENDITURES
THREEYEAR HISTORY
$60,272 $60,501 $59,399
$70,000
$60,000
$50,000
$40,000
cN
00 $30,000
O
.S $20,000
N
i
$10,000
O
0 $0
2021
2020
2019
■ Public Safety
■ Public Works
■ Health & Social Services
■ Culture & Recreation
■ Community & Economic Development
■ General Government
■ Debt Service
■ Capital Projects
2021
2020 2019
Public Safety
$29,038
$29,515 $28,802
Public Works
$5,323
$5,511 $6,323
Health & Social Services
$964
$992 $1,036
Culture & Recreation
$11,674
$12,967 $12,749
Community & Economic Development
$3,938
$4,028 $3,979
General Government
$6,949
$6,846 $6,011
Debt Service
$42
$45 $98 0
Capital Projects
$2,344
$597 $401
COMPARISON OF
GENERAL FUND
BALANCES
0
0
0
N
L
(B
2021-46.50%
2020-33.27%
■ Annual Expenditures* ■ Unassigned Fund Balance
*Annual expenditure figure exclude transfers to other funds
2019-33.21%
r14
NET INVESTMENT IN
CAPITAL ASSETS
, 1414111011
350,000
V) 300,000
O
O
•S 250,000
Ln
i
ca
O 200,000
150,000
100,000
50,000
2021 2020 2019
■ Governmental Activities ■ Business -Type activites
r15
UNFUNDED LEGACY COSTS
70,000
50,000
i
30,000
20,000
10,000
60,799
5,883
11
2021
■ Retiree Healthcare (OPEB) Liability
50,126
2020
■ Pension Liability (IPERS/MFPRSI)
50,052
2019
r16
AUDIT RESULTS EideBailly,,
• Auditors' Opinion on Financial Statements — Unmodified
• Sometimes referred to as a "clean" audit. This is the highest level of assurance auditors can
provide over financial statements.
• Financial Statements are materially accurate
• No disagreements with auditors
• All proposed audit adjustments were made
• Audit performed yearly
• Audit required by Iowa State Code
COMPLIANCE AUDIT RESULTS
• 3 level of audit deficiencies
• Material weakness — highest level, material adjustments identified
EideBailly
• Significant deficiency — does not rise to material level but still something those charged
with governance should be aware of
• Control deficiency — lowest level, compensating controls in place to mitigate likelihood of a
material misstatement
• Previous audit results
• 2020 — unmodified
• 1 material weakness over financial reporting
• 2019—unmodified
• 1 material weakness over financial reporting
• 3 material weaknesses and 1 significant deficiency over federal awards
• 2018 — unmodified, no material weaknesses or significant deficiencies
E18
COMPLIANCE AUDIT RESULTS
EideBailly
• Report on Internal Control Over Financial Reporting and on � ,
Other Matters Based on an Audit of Financial Statements Performed in
Accordance with Government Auditing Standards
• No material weaknesses or material noncompliance were identified
• Will go back to a low -risk auditee in FY23
• Significant Deficiency — Significant audit adjustments over balance sheet and
schedule of federal awards
• Accruals and schedule of federal awards are manually calculated
CHANGES MADE
�►»1
EideBailly
• New Assistant Director of Finance hired with significant government
accounting experience on 4/1/20
• In the process of implementing a new Enterprise Resource Planning
(ERP) System
• A new ERP system will allow us to have better management and controls over accounts
payable, grants, accounts receivable, unearned revenue, and assets. Our current ERP
system lacks this functionality and procedures related to these areas are all manual and
compiled by reviewing invoices and receipts and compiling the information into
spreadsheets.
• Anticipated go -live is July 1, 2022
COMPLIANCE AUDIT RESULTS
• Auditors' Opinion on compliance for major programs
• Unmodified for all major federal programs
EideBailly
• Independent Auditors' Report on Compliance for Each Major Federal Program,
Report on Internal Control, and Report on the Schedule of Expenditures of
Federal Awards Required by the Uniform Guidance
• No findings
NKYOU
FINANCE@CITYOFDUBUQUE.ORG
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