Submission of Fiscal Year Ended June 30, 2022 Annual Comprehensive Financial Report (ACFR) and Results of the 2022 Financial Statement Audit, Including Required CommunicationsCity of Dubuque
City Council Meeting
Action Items # 04.
Copyrighted
July 17, 2023
ITEM TITLE: Submission of Fiscal Year Ended June 30, 2022 Annual Comprehensive
Financial Report (ACFR) and Results of the 2022 Financial Statement
Audit, Including Required Communications
SUMMARY: City Manager transmitting the Fiscal Year 2022 Annual Comprehensive
Financial Report (ACFR) and Results of the 2022 Financial Statement
Audit, Including Required Communications.
SUGGESTED
DISPOSITION:
ATTACHMENTS:
Description
MVM Memo
Staff Memo
FY22 Audit Presentation
Finance and Budget staff will make a presentation.
Receive and File; Presentation Suggested Disposition:
FY22 Annual Comprehensive Financial Report
FY22 Auditor Required Communication
Type
City Manager Memo
Staff Memo
Supporting Documentation
Supporting Documentation
Supporting Documentation
THE C
Dubuque
DUjIBQTE
WAWca 914
Masterpiece on the Mississippi
YP pp
aoo�•o 13
zai7*20*�oi9
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2022 Annual Comprehensive
Financial Report (ACFR) and Results of the 2022 Financial Statement
Audit, Including Required Communications
DATE: July 10, 2023
Chief Financial Officer Jennifer Larson is transmitting the Fiscal Year 2022 Annual
Comprehensive Financial Report (ACFR) and Results of the 2022 Financial Statement
Audit, Including Required Communications. The City's independent auditor issued an
unmodified opinion on the financial statements.
Chief Financial Officer Jennifer Larson will make a presentation and then Chief
Financial Officer Jennifer Larson and I are available, along with a representative of the
auditing firm FORVIS LLP virtually, Partner Jessica Richter, to answer questions.
I respectfully recommend you receive and file the Fiscal Year 2022 annual audit.
Micl4ael C. Van Milligen
MCVM:jI
Attachment
cc: Crenna Brumwell, City Attorney
Cori Burbach, Assistant City Manager
Jennifer Larson, Chief Financial Officer
Brian DeMoss, Finance Manager
THE C
DUUB--'&-FE
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
Dubuque
All -America Cily
2007-2012.2013
2017*2019
FROM: Jenny Larson, Chief Financial Officer
SUBJECT: Submission of Fiscal Year Ended June 30, 2022 Annual Comprehensive
Financial Report (ACFR) and Results of the 2022 Financial Statement
Audit, Including Required Communications
DATE: July 10, 2023
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2022 ACFR audited by
FORVIS, LLP and Results of the 2022 Financial Statement Audit, Including Required
Communications. 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.
Results of the 2022 Financial Statement Audit, Including Required
Communications
Included is a separate letter from FORVIS, 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 2022 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 Jessica Richter,
audit partner from FORVIS LLP, will be available for any questions.
JML
Enclosures: Fiscal Year 2022 ACFR
Results of the 2022 Financial Statement Audit, Including Required
Communications
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FISCALYEAR2022ANNUAL COMPREHENSIVE FINANCIAL
REPORT
Ih. Financial audit performed annually
A Required by the Municipal Oversight Law and governmental auditing standards
Ar
�� Examination of City's financial records
I=1 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
Unmodified Opinion —The statements present fairly the financial position and results of
operations of the government unit on a basis consistent with prior years. This is the so called
"clean opinion."
Modified
Opinion —The opinion is like the
above but with certain
exceptions to generally
accepted
accounting principles which are
clearly explained in the
opinion.
Adverse Opinion —This "bad opinion" states that the financial statements do not fairly
present the financial position and the results of operation of the governmental unit. The
opinion would include the reasons for the adverse opinion.
Disclaimer of Opinion —The auditor cannot render an opinion usually because the financial
records are incomplete or the scope of the audit is too restrictive.
COMPLIANCE AUDIT
Auditors perform compliance
audits in which the auditor
reviews operations in terms of
compliance with various laws
and regulations regarding
grants and financial operations.
•
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.
Ensure that the local
government is in compliance
with all applicable legal
provisions.
Recommendations to
strengthen and improve the
management and efficiency
of the governmental unit.
5
AUDITOR CHANGE
N
()IIV/S
C�.
AUDIT RESULTS
• 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 material audit adjustments were made
GOVERNMENT=
WIDE SUMMARY
• Governmental activities increased the City's net
position by $18.1M.
• Charges for services increased by $2.2M and
gaming increased by $4M
• Overall expenditures decreased by $3.3M
(excluding transfers out to business type
activities)
GOVERNMENT=
WIDE SUMMARY
• Business -type activities increased the City's net
position by $17.1M
• Total expenses increased by $1.9M.
• Charges for services increased by $2.5M.
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.
Interesi
Forfeiture
Charges for Services
21%
Intergov
Gamine. 16%
L%
3%
rio
TAX REVENUE
3YEAR HISTORY
40,000
35,000
30,000
N
25,000
C6
N
0 20,000
15,000
10,000
5,000
$39,707
`40%
2021
$ 36,518
`10111
$ 33,381
2022
2021
2020
Property Tax
$23,544
$23,052
$20,679
Franchise Fee
$6,045
$4,921
$4,559
Local Option Sales Tax
$6,369
$5,664
$4,445
Hotel/Motel
$2,916
$2,036
$2,822
Backfill
Pari-Mutuel
$799
$34
$810
$35
$856
$20 0
GENERAL FUND REVENUE
3YEAR HISTORY ,,,yd
ZIIIIII11
50000
40000
30000
20000
10000
0
2022
2021
$67,869
Taxes Licenses & Permits
■ Intergovernmental ■ Charges for Services
■ Interest, Fines & Forfeitures, & Other ■ Gaming
2022
2021
2020
Taxes
$
39,707
$
36,518
$ 35,405
Licenses & Permits
$
2,212
$
1,984
$ 1,497
Intergovernmental
$
5,545
$
3,535
$ 1,886
Charges for Services
$
15,969
$
13,396
$ 10,586
Interest, Fines & Forfeitures, & Other
$
1,765
$
4,359
$ 3,340
Gaming
$
12,000
$
8,077
$ 7,394
$60,108
2020
i
GENERAL FUND
EXPENDITURES
Community &
Economic
Development, 7
Culture & Recreation;
21%
Debt Service, 0%
General Government,
Services, 1% Public Works, 11%
Capital Projects, 4%
Public Safety, 46%
1
E13
GENERAL FUND
EXPENDITURES
THREEYEAR HISTORY
$70,000
$60,000
$50,000
$40,000
cN
00
$30,000
O
.S
$20,000
N
i
03
$10,000
O
0 $0
2022 2021 2020
■ Public Safety
■ Health & Social Services
■ Community & Economic Development
■ Debt Service
Public Safety
Public Works
Health & Social Services
Culture & Recreation
Community & Economic Development
General Government
Debt Service
Capital Projects
■ Public Works
■ Culture & Recreation
■ General Government
■ Capital Projects
2022
2021
2020
$31,256
$29,038
$29,515
$7,565
$5,323
$5,511
$861
$964
$992
$14,403
$11,674
$12,967
$4,494
$3,938
$4,028
$6,963
$6,949
$6,846
$126
$42
$45
$2,256
$2,344
$597
r14
COMPARISON OF
GENERAL FUND
BALANCES
2022-53.90%
2021-46.50%
■ Annual Expenditures* ■ Unassigned Fund Balance
*Annual expenditure figure exclude transfers to other funds
2020-33.27%
r15
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
2022 2021 2020
■ Governmental Activities ■ Business -Type activites
r16
UNFUNDED LEGACY COSTS
70,000
50,000
i
Ln
0
0
0
30,000
c�
20,000
10,000
10,405
2022
60,799
2021
0 Retiree Healthcare (OPEB) Liability 0 Pension Liability (IPERS/MFPRSI)
50,126
2020
AUDIT RESULTS
• 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 material audit adjustments were made
• Audit performed yearly
• Audit required by Iowa State Code
E18
COMPLIANCE AUDIT RESULTS
• Material weakness — highest level, materi;
adjustments identified
• Significant deficiency — does not rise to
material level but still something those
charged with governance should be awar(
of
• Control deficiency— lowest level,
compensating controls in place to mitigat(
likelihood of a material misstatement
• 2021— unmodified
• 1 significant deficiency over financial
reporting
• 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
E
COMPLIANCE AUDIT RESULTS
• 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
• Material weakness over restatement of prior year financial statements
• GASB 9 — cash flows reporting
• GASB 84 — fiduciary activities
• Workers' compensation fund claims classification
• No Significant Deficiencies identified in FY23
GASB STATEMENT NO. g RESTATEMENT
• GASB Statement No. 9, Reporting Cash Flows of Proprietary and Nonexpendable
Trust Funds and Governmental Entities That Use Proprietary Fund Accounting.
• Cash and cash equivalents are defined to include investments which have an
original maturity of three months or less.
• During 2022, the City corrected beginning cash and cash equivalents at July 1,
2021, to exclude investments not meeting its cash equivalents definition.
tormwater
Water Utility
Utility
Total
Cash and investments -
July 1, 2021, as
previously reported
121 242952
1625851515
2819102467
Adjustment to correct
misstatement
(25,200)
(2,0 0,000)
(2,605,200)
Cash and cash
equivalents - July 1,
2021, as restated
1 L799,752
14,5055515
6.305, 67
rzs
GASB STATEMENT NO. 84 RESTATEMENT
• GASB Statement No. 84, Fiduciary Activities, changed the definition, criteria and
reporting of fiduciary activities as well as redefined various fiduciary fund types
and changed fund type terminology.
• Cable Equipment Fund, previously reported as a custodial fund, does not meet
definition of a fiduciary activity because funds can be used for city purposes
under Iowa Code Section 477A7.4
Governmental
General Fund
Activities
Fiduciary Funds
Net position/fund balance - July 1, 2021, as S
.3419 55106
391152.35754
21304,920
previously reported
Adjustment to correct misstatement
1,126,802
1,126,902
(1,126,802)
Net position/fund balance - July 1, 2021, as restated
36,111.908
392,65 1556
1.17811 1
E22
WORKERS' COMPENSATION RESERVE RESTATEMENT
• Police and Fire Injury claims are required to be charged to the General Fund by
Iowa Code
• During FY21 and FY22, Police and Fire injury claims were incorrectly charged to
the workers' compensation reserve fund
• Restatement moves $973,070 of fund balance from General Fund to Workers'
Compensation Internal Service Fund
Net position/fund balance - July 1, 2021, as
previously reported
Adjustment to correct misstatement
Net position/fund balance - July 1, 202 t, as
restated
Internal Service
General Fund Funds
4198 ,10 311151161
9737070 9737070
34101210 41)08 ,2, 1
COMPLIANCE AUDIT RESULTS
11 Auditors' Opinion on compliance for major programs
Unmodified for all major federal programs
Independent Auditors' Report on Compliance for Each
is Major Federal Program, Report on Internal Control, No findings
41" and Report on the Schedule of Expenditures of Federal
Awards Required by the Uniform Guidance
NKYOU
FINANCE@CITYOFDUBUQUE.ORG
HTTP://WWW.CITYOFDU BUQU E.ORG
Dubuque Arboretum
VA
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7
ANNUAL COMPREHENSIVE
0
Photo Courtesy of:
City of Dubuque Staff
Cover Design by:
Kristin Hill
Annual Comprehensive Financial Report
For The Fiscal Year Ended June 30, 2022
City of Dubuque, Iowa
Prepared by:
Department of Finance
THIS PAGE IS INTENTIONALLY LEFT BLANK
Introductory Section
June 30, 2022
City of Dubuque, Iowa
THIS PAGE IS INTENTIONALLY LEFT BLANK
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
Exhibit Pale
INTRODUCTORY SECTION (Unaudited)
Table of Contents 1-2
Letter of Transmittal 3-11
City Organizational Chart 12
Officials 13
Certificate of Achievement for Excellence in Financial Reporing 14
FINANCIAL SECTION
Independent Auditor's Report
17-19
Management's Discussion and Analysis (Unaudited)
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
58-117
Required Supplementary Information (Unaudited)
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds
121
Note to Required Supplementary Information — Budgetary Reporting
122
Schedule of the City's Proportionate Share of Net Pension Liability — Iowa
Employees' Retirement System
123
Schedule of City's Contribution — Iowa Employees' Retirement System
124
Notes to Required Supplementary Information — Net Pension Liability IPERS
125
Schedule of the City's Proportionate Share of Net Pension Liability — Municipal
Fire and Police Retirement System of Iowa
126
Schedule of City's Contributions — Municipal Fire and Police Retirement System
of Iowa
127
Notes to Required Supplementary Information — Net Pension Liability MFPRSI
128
Schedule of Changed in Total OPEB Liability, Related Ratios and Notes
129
Supplementary Information
Combining Fund Statements
Combining Balance Sheet — Nonmajor Governmental Funds
A-1
132-134
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds
A-2
136-138
Combining Statement of Net Position — Nonmajor Enterprise Funds
B-1
141
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position — Nonmajor Enterprise Funds
B-2
142
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
FINANCIAL SECTION (continued)
Exhibit
Page
Combining Statement of Cash Flows — Nonmajor Enterprise Funds
B-3
143-144
Combining Statement of Net Position — Internal Service Funds
C-1
146-147
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position (Deficit) — Internal Service Funds
C-2
148-149
Combining Statement of Cash Flows — Internal Service Funds
C-3
150-151
STATISTICAL SECTION (Unaudited)
Table
Page
Statistical Section Contents
155
Financial Trends
Net Position by Component
1
156-157
Changes in Net Position
2
158-161
Fund Balances of Governmental Funds
3
162-163
Changes in Fund Balances of Governmental Funds
4
164-165
Revenue Capacity
Taxable and Assessed Value of Property
5
166
Property Tax Rates — Direct and Overlapping Governments
6
167
Principal Property Taxpayers
7
168
Property Tax Levies and Collections
8
169
Debt Capacity
Ratios of Outstanding Debt by Type
9
170-171
Ratios of General Bonded Debt Outstanding
10
172
Direct and Overlapping Governmental Activities Debt
11
173
Legal Debt Margin Information
12
174-175
Revenue Debt Coverage
13
176
Water and Sewer Receipt History
14
177
Water Meters by Rate Class
15
178
Largest Water and Sewer Customers
16
179
Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining
17
180
Demographic and Economic Information
Demographic and Economic Statistics
18
181
Principal Employers
19
182
Operating Information
Full -Time Equivalent City Government Employees by
Function/Department
20
184-185
Operating Indicators by Function/Program
21
186-187
Capital Asset Statistics by Function
22
188-189
Retail Sales
23
190
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 193-194
Independent Auditor's Report on Compliance with Requirements for Each Major
Program and on Internal Control Over Compliance Required by The Uniform Guidance 195-197
Schedule of Expenditures of Federal Awards 198-201
Notes to the Schedule of Expenditures of Federal Awards 202
Schedule of Findings and Questioned Costs 203-209
2
THE CITY OF
DUTBQTE
Masterpiece on the Mississippi
June 6, 2023
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, 2022.
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 FORVIS LLP conducted the audit for fiscal year 2022. The independent auditors'
report is included in the Financial Section of this report. 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 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. The City has no blended component
units. 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 revitalization that supports a viable, livable and equitable
3
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-mtuel 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 3.0%, slightly above the state unemployment rate of 2.9% and below the 3.7%
national rate.
The City of Dubuque is empowered to levy a property tax on real property located within the city limits.
The City has operated under a council-manager form of government since 1920. Policymaking and
legislative authorities are vested in the governing council, which consists of a mayor and a six -member
council. The city council is elected on a non -partisan basis. The mayor is elected to a four-year term.
Council members are elected to four-year, staggered terms with three council members elected every two
years. Four of the council members are elected within their respective wards; the mayor and the two
remaining council members are elected at -large. The governing council is responsible, among other things,
for setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the city
manager, city attorney, and city clerk. The city manager is responsible for overseeing the day-to-day
operations of the government, making recommendations to the city council on the budget, and other matters,
appointing the heads of the government's departments, and hiring employees.
ECONOMIC CONDITION AND OUTLOOK
The economic condition and outlook of Dubuque continues to thrive. The City's economy has a diverse
employer base including manufacturing, technology, health services, insurance, education, and government.
The top 10 employers in the area employ less than 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 are slightly higher (3.0%) than statewide (2.9%) and below the
national (3.7%) 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 Centex
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.
Dubuque Industrial Crossroads: Located at the intersection of US Highways 151/61 and Iowa 32
(Southwest Arterial), the City acquired 156 acres to accomodate future business development.
In addition, 2022 saw expansions to several industrial businesses: Green Industrial Supply (88,000 sf),
Dubuque Screw Products (23,000 sf), Klauer Manufacturing (67,197 sf), and Tri-State Quality Metals
(31,350 sf).
A new 75,000 sq ft industrial building was constructed on Old Highway 20.
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.
Kretschmer Lofts completed in 2022, is an historic rehabilitation of a former Kretschmer-Tredway
Company that used to manufacture plumbing and heating supplies. It is now 48 apartments providing
housing in the heart of the millwork 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
5
and 1934 on the northeast corner of Jackson and 30th Streets. The complex is eligible for the National
Register of Historic Places and is in Dubuque's Brewery Neighborhood Conservation District. The southern
portion of the building was purchased by 3000 Jackson LC in March 2017 and work to restore the building
began. The new owner obtained a demolition permit to deconstruct the unsound section of the structure and
plan to stabilize and make immediate repairs to prevent further deterioration. Although a portion of the
historic structure will be demolished, there are plans to repair, stabilize, and eventually completely restore
the property in the future. The property was rezoned in May 2020 to accommodate an anticipated $30
million mixed -use development providing commercial/retail and residential space.
Commercial Development: While COVID-19 slowed commercial construction season beginning in March
2020, building permit revenues still show a strong year for commercial remodels and new development.
JoAnn Fabric completed work on a new 30,000 square foot facility. The University of Dubuque constructed
a new student clinic, welcome center and outdoor space known as Wallace Commons. Hormel completed
renovations to add a new product line at their facility in the Industrial Park.
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.
In 2022, The John F. Kennedy Road Commercial Corridor sees continued redevelopment with the
construction of 7500 sf Green State Credit Union on a 55,407 sf site at the corner of Stoneman Road and
JFK„ a five (5) unit 11,407 sf multi -tenant commercial building on a 63,346 sf site at 3415 Stoneman Road
and Collins Community Credit Union constructing a 29,799 sf three (3) story building on a 100,137 sf site at
the former Shopko Site.
Asbury Plaza continues to be developed with construction of a Tidal Wave Auto Spa (tunnel carwash) and
future construction of a Starbucks facility.
Residential
In 2022, the following residential developments were completed or under construction:
The Gardens of Dubuque — 1895 Radford Road, a 50-unit affordable workforce housing development.
Roosevelt West — 1865 Radford Road, a 44-unit affordable senior housing development.
Old Prescott School — It 99 Central, a 14-unit market rate housing development.
Miller 4-Plex — Eastgate Court, a four -unit market rate housing development.
Vintage Estates of Dubuque — End of Barnwood Lane, a 35 single-family cooperative community
development
Rustic Point Estates 42 — NE corner of Kennedy/Derby Grange Roads composed of 45 single-family/duplex
lots.
Silver Oaks Subdivision 43 — end of Elmwood Drive, composed of 128 single family/duplex lots.
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.
MercyOne Dubuque along with Medical Associates Clinic constructied 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
prof ect.
0
Grand River Medical Center constructed a 45,000 square foot, three-story, acute care 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.
Crescent Community Health Center, a Federally Qualified Health Center (FQHC), expanded services and
their clinic space at 1690 Elm Street to include behavioral health services, and an urgent care clinic. The
clinic is now expanding dental services as well as it's wellness services in an out building at their address,
Crescent acquired In Focus pharmacy, located on the second floor of 1690 Elm Street, and will now offer
pharmacy services.
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 completed the building process for a 17,000 square
foot Welcome Center addition and a new 4,000 square foot student clinic.
Dubuque Hempstead completed and opened a 27,000 sq. ft. aquatic facility on the north side of the school.
A two-story addition is being added to the Alternative Learning Center.
The City's recent awards and recognition from a variety of sources include:
• The National Civic League named Dubuque a 2019 All -America City. This makes the fifth time in
twelve years Dubuque has received this award which recognizes communities whose citizens work
together to identify and tackle community -wide challenges and achieve uncommon results. Dubuque
received the 2019 award for the civic infrastructure built on the Inclusive 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.
7
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. The Community Impact Division was established in
Leisure Services with two positions, Community Diversion and Prevention Coordinator and Community
Service Outreach Coordinator to focus on this work.
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 was completed in late 2022. Since the fall
of 2021, the improvements have provided for an increase in the level of flood protection for over 1,300
homes and businesses from a 1 in 75- year rain to a 1 in 500 - year rain.
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
from the Upper Bee Branch to the Lower Bee Branch through the railway yard on Garfield Avenue. The
grant also provided funding 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 drainage
improvements from the Bee Branch Creek to the west along 17th Street from Elm Street to N. Main 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.
9
Another phase of the Bee Branch project is the $18.9 million Bee Branch Stormwater Pumping Project that
involves improvements 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. 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 has increased by $8.9 million, due in part to site challenges. The City is
evaluating alternative designs that would be ready for bidding in late 2023. 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. The Dubuque Ice Arena transferred from a non-profit operation to City
to now management by Schmitt Island Development Corporation, the first of many partnerships to be
developed with this partner. The 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
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.
9
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) had
investment losses of $244,598 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. 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 $634,701 net position as of June 30, 2022. The City has also
established a self-insurance plan for medical, prescription drug, and short-term disability. The accumulated
reserve provision for such claims equaled $4,244,462 as of June 30, 2022. 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 May 6, 2022; a Aa3 rating on outstanding second lien sales tax increment
debt that is ultimately backed by an unlimited property tax pledge; and an A2 rating on outstanding senior
lien sales tax increment revenue bonds. The Aa3 rating reflects the city's growing tax base that serves as a
regional economic center with slightly below average resident incomes and healthy reserves supported by
significant revenue raising flexibility. Leverage is slightly elevated and could grow further because of
outstanding capital needs. 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,
10
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
Annual Comprehensive Financial Report for the fiscal year ended June 30, 2021. This was the 34th
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 annual
comprehensive 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, 2023. 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 17th 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 to be 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, FORVIS
LLP, whose competent assistance and technical expertise have enabled the production of this report.
Sincerely,
Michael C. Van Milligen
City Manager
Jennifer M. Larson
Chief Financial Officer
11
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CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2022
CITY COUNCIL
Bradley M. Cavanagh
Ric W. Jones
David T. Resnick
Susan R. Farber
Laura J. Roussell
Danny C. Sprank
Katy A. Wethal
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M. Brumwell
Jason D. Lehman
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
Amy R. Scheller
Mary Rose Corrigan
Alexis M. Steger
Shelley M. Stickfort
Gisella M. Aitken-Shadle
Christine A. Kohlmann
Marie L. Ware
Nicholas L. Rossman
Randy W. Gehl
John L. Klostermann
Wally C. Wernimont
Jeremy R. Jensen
Gina S. Bell
Ryan C. Knuckey
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
Chief Financial Officer
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
13
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Annual Comprehensive
Financial Deport
For the Fiscal Year Ended
June 30, 2021
14
Financial Section
June 30, 2022
City of Dubuque, Iowa
15
THIS PAGE IS INTENTIONALLY LEFT BLANK
16
FORWS
1401 50th Street, Suite 350 / West Des Moines, IA 50266
P 515.223.0159 / F 515.223.5429
forvis.com
Independent Auditor's Report
Honorable Mayor and City Council
City of Dubuque, Iowa
Dubuque, Iowa
Report on the Audit of the Financial Statements
Opinions
We have audited 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 (the City), as of and for the year ended June 30, 2022, and the related notes to the
financial statements, which collectively comprise the City's basic financial statements as listed in the table of
contents.
In our opinion, based on our audit and the reports of the other auditors, the accompanying 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, as of June 30, 2022, 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.
We did not audit the financial statements of Dubuque Initiatives and Subsidiaries and Dubuque Convention and
Visitors Bureau, which represent 30% and 19%, respectively, of the assets and revenues of the discretely
presented component units as of June 30, 2022. Those statements were audited by other auditors, whose
reports have been furnished to us, and our opinion, insofar as it relates to the amounts included for Dubuque
Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau, is based solely on the reports of the
other auditors.
Basis for Opinions
We conducted our audit in accordance with auditing standards generally accepted in the United States of America
(GAAS) and the standards applicable to financial audits contained in Government Auditing Standards, issued by
the Comptroller General of the United States (Government Auditing Standards). Our responsibilities under those
standards are further described in the "Auditor's Responsibilities for the Audit of the Financial Statements" section
of our report. We are required to be independent of the City, and to meet our other ethical responsibilities, in
accordance with the relevant ethical requirements relating to our audit. We believe that the audit evidence we
have obtained is sufficient and appropriate to provide a basis for our audit opinions. The financial statements of
the Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau were not audited in
accordance with Government Auditing Standards.
Emphasis of Matter
As described in Note 18 to the financial statements, in 2022, the City adopted Governmental Accounting
Standards Board Statement No. 87, Leases. Our opinions are not modified with respect to this matter.
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office
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The 2021 financial statements, before they were restated for the matters discussed in Note 18, were audited by
other auditors, and their report thereon dated December 22, 2021, expressed an unmodified opinion. Our
opinions are not modified with respect to this matter.
Responsibilities of Management for the Financial Statements
Management is responsible for the preparation and fair presentation of the financial statements in accordance
with accounting principles generally accepted in the United States of America, and for 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.
In preparing the financial statements, management is required to evaluate whether there are conditions or events,
considered in the aggregate, that raise substantial doubt about the City's ability to continue as a going concern
for 12 months beyond the financial statement date, including any currently known information that may raise
substantial doubt shortly thereafter.
Auditor's Responsibilities for the Audit of the Financial Statements
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free
from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our
opinions. Reasonable assurance is a high level of assurance but is not absolute assurance and therefore is not
a guarantee that an audit conducted in accordance with GAAS and Government Auditing Standards will always
detect a material misstatement when it exists. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control. Misstatements are considered material if there is a
substantial likelihood that, individually or in the aggregate, they would influence the judgment made by a
reasonable user based on the financial statements.
In performing an audit in accordance with GAAS and Government Auditing Standards, we:
Exercise professional judgment and maintain professional skepticism throughout the audit.
Identify and assess the risks of material misstatement of the financial statements, whether due to fraud or error,
and design and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the amounts and disclosures in the financial statements.
Obtain an understanding of internal control relevant to the audit 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
City's internal control. Accordingly, no such opinion is expressed.
Evaluate the appropriateness of accounting policies used and the reasonableness of significant accounting
estimates made by management, as well as evaluate the overall presentation of the financial statements.
Conclude whether, in our judgment, there are conditions or events, considered in the aggregate, that raise
substantial doubt about the City's ability to continue as a going concern for a reasonable period of time.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit, significant audit findings, and certain internal control -related matters that
we identified during the audit.
18
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that management's discussion
and analysis, budgetary comparison, pension, and other postemployment benefit information be presented to
supplement the basic financial statements. Such information is the responsibility of management and, 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 GAAS, which consisted of inquiries of management about
the methods of preparing the information and comparing the information for consistency with management's
responses to our inquiries, 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.
Supplementary Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively comprise
the City's basic financial statements. The combining nonmajor fund statements and the schedule of expenditures
of federal awards, as required by Title 2 U.S. Code of Federal Regulations Part 200, Uniform Administrative
Requirements, Cost Principles, and Audit Requirements for Federal Awards, are presented for purposes of
additional analysis and are not a required part of the basic financial statements.8F8F Such information is the
responsibility of management and was derived from and relates directly to the underlying accounting and other
records used to prepare the basic financial statements. The 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 GAAS. In our opinion, the combining nonmajor fund statements and the schedule
of expenditures of federal awards is fairly stated, in all material respects, in relation to the basic financial
statements as a whole.
Other Information
Management is responsible for the other information included in the annual comprehensive financial
report.11 F11 F The other information comprises the introductory and statistical sections but does not include the
basic financial statements and our auditor's report thereon. Our opinions on the basic financial statements do
not cover the other information, and we do not express an opinion or any form of assurance thereon.
In connection with our audit of the basic financial statements, our responsibility is to read the other information
and consider whether a material inconsistency exists between the other information and the basic financial
statements, or the other information otherwise appears to be materially misstated. If, based on the work
performed, we conclude that an uncorrected material misstatement of the other information exists, we are
required to describe it in our report.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued our report dated June 6, 2023, on our
consideration of City's internal control over financial reporting and on our tests of its compliance with certain
provisions of laws, regulations, contracts and grant agreements, and other matters. The purpose of that report
is 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 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.
FOFV I5, 1.-P
West Des Moines, Iowa
June 6, 2023
19
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20
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
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, 2022. Comparative information
from the previously issued financial statements for the year ended June 30, 2021, is also included. The
2021 information has not been restated for the implementation of GASB Statement No. 87. 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 $665,485,190 compared to net position of
$629,117,651 for fiscal year 2021.
Governmental program revenues decreased by $10,547,982 from fiscal year 2021. This decrease
was due largely in part to a significant decrease in grant revenues in public works related to the
completion and closeout of the Southwest Arterial project. There was also decreased grant
revenue in community and economic development related to completion and closeout of the
HUD Resiliency grant.
The City's business type activities program revenues decreased $4,338,940. Charges for services
increased by $2,520,736. Rate increases included 5% for water, 9% for sewer, 1.69% for
stormwater, and no increase for refuse in fiscal year 2022. The Stormwater Fund had decreased
grant revenue related to the completion and closeout of the Bee Branch Creek Restoration
project. There were no capital contributions from outside developers for completed subdivisions.
Capital contributions received from governmental funds were $3,533,890 and are shown in the
transfers line and are detailed out in Note 6.
Expenses of the City's governmental activities decreased approximately 3.6%, or $3,280,894
from fiscal year 2021 to fiscal year 2022. The decrease was seen mainly in public safety,
community and economic development, and general government, which is due to a high number
of vacant positions in public safety, a deficit in Parking paid by Greater Downtown TIF in fiscal
year 2021, and notes receivable written off in fiscal year 2021 as well as a reduction in net
pension liability in fiscal year 2022.
The City implemented Governmental Accounting Standards Board Statement No. 87, Leases, for
the year ended June 30, 2022. This resulted in a restatement as of July 1, 2021 for lease
receivables, lease payables, deferred inflows of resources and leased assets. The effect of
implementing this Statement did not result in a restatement of beginning net position as the City
did not have capital leases under previous guidance. See Note 18 for further information.
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.
21
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
The statement of net position presents information on all of the City's assets, deferred outflows of
resources, liabilities, and deferred inflows of resources, with the difference between assets plus deferred
outflows, and liabilities plus deferred inflows of resources 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, additional non -financial factors
should be considered, such as changes in the City's property tax base and the condition of the City's
infrastructure.
The statement of activities presents information showing how the City's net 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, and transit.
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.
22
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near -term financial decisions. Both
the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and
changes in fund balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains 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, and salt. 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 custodial fund reporting resources held for the Dubuque Racing Association for
improvements at the greyhound racing facility and a custodial 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 custodial 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, 2022
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 and lease 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
2022
2021*
2022
2021*
2022
2021*
Current and other assets
$ 196,804,646
$ 141,183,538
$ 53,694,044
$ 50,637,097
$ 250,498,690
$ 191,820,635
Capital and lease assets
420,411,188
416,838,707
387,565,873
379,026,143
807,977,061
795,864,850
Total assets
617,215,834
558,022,245
441,259,917
429,663,240
1,058,475,751
987,685,485
Deferred outflows of resources
8,681,034
15,610,050
1,031,486
1,285,787
9,712,520
16,895,837
Long-term liabilities
85,447,508
125,830,851
165,553,863
179,327,896
251,001,371
305,158,747
Other liabilities
40,251,472
27,787,317
15,658,748
13,622,200
55,910,220
41,409,517
Total liabilities
125,698,980
153,618,168
181,212,611
192,950,096
306,911,591
346,568,264
Deferred inflows of resources
90,404,860
28,490,373
5,386,630
405,034
95,791,490
28,895,407
Net position:
Net investment in capital assets
386,739,779
387,768,367
219,652,664
207,159,931
606,392,443
594,928,298
Restricted
35,584,078
34,083,157
3,124,213
2,942,894
38,708,291
37,026,051
Unrestricted
(12,530,829)
(30,327,770)
32,915,285
27,491,072
20,384,456
(2,836,698)
Total net position
$ 409,793,028
$ 391,523,754
$ 255,692,162
$ 237,593,897
$ 665,485,190
$ 629,117,651
*Not restated for the implementation of GASB Statement No. 87
Net position of the governmental activities increased $18,269,274 over fiscal year 2021 balance of
$391,523,754. Governmental activities had $179,824 of capital assets donated from developers. Cash
increased by $26,096,467, deferred outflows of resources decreased by $6,929,016, unearned revenue
increased by $9,924,364 related to American Rescue Plan Act funds received but not spent, net pension
liability decreased by $44,832,120, pension related deferred inflows increased by $29,478,117, OPEB
related deferred inflows increased by $701,692, and lease related deferred inflows increased by
$31,759,771 based on the implementation of GASB Statement No. 87.
24
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
Net position for the business -type activities increased $18,098,265 over fiscal year 2021 of
$237,593,897. Charges for services increased $2,520,736. Grants decreased $6,859,676. The
Stormwater Fund had decreased grant revenue related to the completion and closeout of the Bee Branch
Creek Restoration project. The increase in net position is also due to transfers of capital assets from
governmental funds of $3,533,890.
A portion of the City's net position $38,708,291 or 5.8% represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal year 2022, 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, pension related deferred outflows $8,013,648, OPEB
related deferred outflows $667,386, along with $10,405,354 in pension liability and $5,527,160 in OPEB
liability.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$39,406,493 in 2022. Other governmental revenues included gaming $12,000,140, local option sales
taxes $12,738,941, and charges for services $22,700,982. In calendar year 2021, gross gaming revenues
were up 43.0% for the DRA and the Diamond Jo was up 52.1 % as compared to calendar year 2020. In
calendar year 2021, the DRA showed increases in hotel room revenue, food and beverage sales, and other
revenue as compared to calendar year 2020. The current Dubuque market is approximately $130 million
annually in 2021 up from the $88 million market in 2020 and up from the $120 million market in 2019.
DRA share of the market was 41.2% in 2021 and 41.2% in 2019. Local option sales taxes increased
based on an increase in online sales.
Governmental operating expenses during 2022 totaled $94,086,645. Public Safety decreased $2,034,718
due to approximately fourteen vacant police officer positions, public works increased $992,925 due to
the asphalt milling program increased from five center line miles to ten center line miles, culture and
recreation increased $3,111,030 due to one pool open during 2022 as compared to no pools open in 2021
and all summer and fall programming offered during 2022, community and economic development
decreased $1,301,781 due to the change in OPEB and pension liability, and general government
decreased $2,835,496 based on recording internal service funds to government wide and the change in
OPEB and pension liability.
Business -type activities. Operating revenue increased $2,581,683 based on rate increases of 3% in
water and sanitary sewer, 2.60% in refuse, and 6.76% in stormwater. In addition, late fees, penalties,
collections, and parking meter enforcement were reinstated at the beginning Fiscal Year 2022. Operating
expenses increased from $33,785,256 in 2021 to $33,935,701 in 2022. The increase was primarily in
supplies and services and utilities expense. Nonoperating expenses consist of interest expense of
$3,312,924. Investment earnings decreased from $130,706 in 2021 to $119,466 in 2022.
25
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Governmental Activities
Business -type
Activities
Total
2022
2021*
2022
2021*
2022
2021*
Revenues:
Program revenues
Charges for services
$ 22,700,982
$ 20,510,357
$ 37,103,148
$ 34,582,412
$ 59,804,130
$ 55,092,769
Operating grants and contributions
19,956,589
24,436,818
2,281,855
9,894,477
22,238,444
34,331,295
Capital grants and contributions
4,007,842
12,266,220
7,444,056
6,691,110
11,451,898
18,957,330
General revenues
Property taxes
39,406,493
39,524,078
-
-
39,406,493
39,524,078
Local option sales tax
12,738,941
11,328,295
12,738,941
11,328,295
Hotellmotel tax
2,915,854
2,036,045
2,915,854
2,036,045
Utility franchise fees
6,044,713
4,920,610
6,044,713
4,920,610
Gaming
12,000,140
8,077,003
12,000,140
8,077,003
Unrestricted investment earnings
(390,365)
142,102
119,466
130,706
(270,899)
272,808
Gain (loss) on sale of capital assets
244,104
296,969
(206,351)
-
37,753
296,969
Total revenues
119,625,293
123,538,497
46,742,174
51,298,705
166,367,467
174,837,202
Expenses:
Public safety
30,548,958
32,583,676
-
-
30,548,958
32,583,676
Public works
21,942,380
20,949,455
21,942,380
20,949,455
Health and social services
1,003,870
1,487,042
1,003,870
1,487,042
Culture and recreation
14,452,466
11,341,436
14,452,466
11,341,436
Community and economic
development
16,866,498
18,168,279
16,866,498
18,168,279
General government
7,210,508
10,046,004
7,210,508
10,046,004
Interest on long-term debt
2,004,709
2,791,647
2,004,709
2,791,647
Dubuque Metropolitan Area Solid
Waste Agency
57,256
-
57,256
-
Sewage disposal works
-
12,197,134
12,277,013
12,197,134
12,277,013
Water utility
7,212,652
7,968,029
7,212,652
7,968,029
Stormwater utility
6,047,606
6,164,947
6,047,606
6,164,947
Parking facilities
2,972,990
3,334,222
2,972,990
3,334,222
Refuse collection
4,452,838
4,546,168
4,452,838
4,546,168
Transit system
4,027,600
4,494,303
4,027,600
4,494,303
Salt
-
129,265
147,524
129,265
147,524
Total expenses
94,086,645
97,367,539
37,040,085
38,932,206
131,126,730
136,299,745
Increase in net position
before transfers and special items
25,538,648
26,170,958
9,702,089
12,366,499
35,240,737
38,537,457
Transfers
(7,430,546)
(12,845,032)
7,430,546
12,845,032
-
-
Special item - Transfer of roads
-
337,419
-
-
-
337,419
Increase in net position
18,108,102
13,663,345
17,132,635
25,211,531
35,240,737
38,874,876
Net position, beginning, as restateed
391,684,926
377,860,409
238,559,527
212,382,366
630,244,453
590,242,775
Net position, ending
$ 409,793,028
$ 391,523,754
$ 255,692,162
$ 237,593,897
$ 665,485,190
$ 629,117,651
*Not restated for the implementation of GASB Statement No. 87
26
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
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 $98,239,621 at June 30, 2022.
$4,721,936 is in nonspendable for inventory, long-term receivables, and prepaid items. $69,412 is
nonspendable endowment corpus. $42,342,262 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 $10,202,856 for capital
improvements. $4,292,669 is assigned for capital improvements and equipment. This leaves
$36,610,486 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 $9,582,585 to $44,721,423. Gaming revenues increased by $3,923,137 or 6.73% in
fiscal year 2022. Charges for Services increased $2,572,905 coupled with an increase in taxes and a
decrease in investment earnings. General Fund expenditures increased from $60,271,801 in 2021 to
$67,924,133 in 2022. The $7,652,332 increase was primarily in the public works and culture and
recreation functions.
The fund balance of special revenue fund Tax Increment Financing increased by $1,131,646 to
$10,592,428. Tax revenues increased by $26,291 due to expansions and new businesses added in
Dubuque Industrial Center West. Tax Increment Financing expenditures decreased $200,934.
The fund balance of the special revenue Community Development Fund increased by $794,235 to
$6,604,724. Intergovernmental revenue decreased from $9,799,286 in 2021 to $4,648,280 in 2022
primarily due to the closeout and completion of the HUD Resiliency grant.
The Debt Service Fund paid $4,462,667 in principal and $2,439,179 in interest and fiscal charges during
fiscal year 2022.
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, 2022, totaled $254,507,764 of which the
unrestricted is $31,730,887.
The Sewer Fund had an increase of $1,575,653 for total net position of $32,880,246. Operating
expenses increased $131,357 primarily for utilities and supplies and services. The Sewer Fund operating
income from operations was $3,125,736.
The Water Utility had an increase in net position by $3,589,407 for total net position of $40,535,894.
There was a 5% increase in water rates in 2022.
The Storm Water Utility had an increase in net position of $8,597,079. Ending net position is
$110,094,603. Storm Water Utility had capital contributions of $1,783,427 which consisted of a
contribution of assets from governmental funds $1,760,600 and had intergovernmental revenues of
$7,252,125 which consisted of a capital grant for $7,021,167.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2022
The Parking Facilities had a increase in net position of $1,798,975. Ending net position is $50,024,348.
Operating income increased by $685,055. Parking Facilities had operating loss of $255,558 after
depreciation of $1,140,199 for fiscal year 2022.
Other Enterprise Funds net position increased by $1,352,753 to $20,972,673. This was primarily due to
Transit's increase of $1,149,244 in net position.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2021-2022 cash basis budget. The first amendment was
passed in September 2021 to reflect operating and capital budget carryovers (continuing appropriation
authority) from fiscal year 2021 and amended the fiscal year 2022 budget for operating and capital City
Council actions since the beginning of the fiscal year. The second budget amendment was passed in May
2022 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 $46,002,504. 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 $113,076,415 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 $20,093,182 less than the final amended budget; and, cash basis
expenditures were $128,480,048 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, 2022
CAPITAL AND LEASE ASSETS AND DEBT ADMINISTRATION
Capital and lease assets. The City's investment in capital and lease assets for its governmental and
business -type activities as of June 30, 2022, amounts to $807,977,061 (net of accumulated depreciation
and amortization). This investment in capital and lease 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)
Governmental Activities
Business -type
Activities
Total
2022
2021*
2022
2021*
2022
2021*
Land
$ 109,344,920
$ 105,126,171
$ 24,996,358
$ 24,793,823
$ 134,341,278
$ 129,919,994
Buildings
143,501,321
143,301,022
157,433,288
158,590,934
300,934,609
301,891,956
Improvements other than buildings
28,347,112
27,926,021
191,738,459
183,083,727
220,085,571
211,009,748
Machinery and equipment
56,334,774
55,449,960
124,741,230
115,764,515
181,076,004
171,214,475
Leased equipment
55,894
-
267,361
-
323,255
-
Leased building
208,093
-
10,990
219,083
-
Infrastructure
272,137,258
265,956,732
-
-
272,137,258
265,956,732
Construction in progress
4,048,607
3,038,876
42,436,293
44,479,731
46,484,900
47,518,607
Accumulated depreciation
(193,566,791)
(183,960,075)
(154,058,106)
(147,686,587)
(347,624,897)
(331,646,662)
$ 420,411,188
$ 416,838,707
$ 387,565,873
$ 379,026,143
$ 807,977,061
$ 795,864,850
*Not restated for the implementation of GASB Statement No. 87
Major expenditures during 2021-2022 were for the construction work on stormwater Bee Branch Creek
Restoration, Roosevelt water tower, Airport runway sensor update, and water main replacements.
Long-term debt. At year end, the City had $244,331,588 of debt outstanding. During fiscal year 2022, the
City issued $9,565,000 of general obligation bonds, which were used for financing new projects.
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 $4,295,419 of SRF debt in 2022. The City has pledged income derived from the acquired or
constructed assets to pay debt service.
During fiscal year 2022, the City issued $3,505,000 of water revenue refunding bonds, which were used
for refunding the water revenue bonds series 2008D and 201 OD. The refunded bonds were called on
August 23, 2021 at a call price of 100%. The refunding was undertaken to reduce total debt service
payments The results of the transaction is a reduction of $578,395 in future debt service payments for an
economic gain of $487,437
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 $241,616,084. With $101,870,161 of debt applicable against the capacity,
the City is utilizing 42.16% 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, 2022
ECONOMIC FACTORS
The City's unemployment rate as of October, 2022 was 3.0%, down from 3.2% in October, 2021. The
national average was 3.7% for October 2022, according to the Bureau of Labor Statistics. State of Iowa
was 2.9% as reported in October, 2022.
The assessed valuation of taxable property, net of exemptions, increased by 2.34% to $2,973,185,000. In
fiscal year 2022, there was no increase to the minimum monthly refuse rate of $14.99, a 9% increase to
sewer rate, a 5% increase to water rates, and a 1.69% increase to the storm water monthly fee ($8.43 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. Local, regional, and national economies, including that of the City of Dubuque, have been
impacted by the pandemic. To date, the outbreak has not created a material disruption to the operations of
the City of Dubuque. In still an uncertain pandemic environment, the City has maintained its commitment
to the community and financial discipline during the economic recovery.
Fiscal year 2022 resulted in an increase in General Fund balance. 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. There are still
however, revenue concerns going forward. City Council and City staff plan to use caution going forward
in fiscal year 2023 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 Chief Financial Officer, 50 West 13th Street, Dubuque, Iowa 52001-4864.
30
Basic Financial Statements
Fiscal Year Ended June 30, 2022
City of Dubuque, Iowa
31
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2022
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Leases
Special assessments
Accrued interest
Notes
Intergovernmental
Due from governmental activities
Inventories
Prepaid items
Total Current Assets
NONCURRENT ASSETS
Expendable restricted cash and investments
Nonexpendable restricted cash and investments
Notes receivable
Lease receivable
Capital and lease assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Leased equipment
Leased real estate
Construction in progress
Accumulated depreciation and amortization
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
$ 107,648,260 $ 40,721,991 $ 148,370,251 $ 9,920,236 $ 10,330,132 $ 835,405
478,323
478,323
26,205,437
-
26,205,437
-
-
-
3,458,750
4,338,978
7,797,728
700,790
22,612
26,162
1,460,628
153,714
1,614,342
45,692
-
-
309,139
-
309,139
-
77,164
14,298
91,462
8,442
-
541,787
-
541,787
-
297,468
4,743,761
1,268,750
6,012,511
-
-
1,184,398
1,184,398
-
-
1,354,665
1,308,600
2,663,265
-
274,164
8,386
467,373
62,013
529,386
6,821
-
2,500
146,745,287
49,052,742
195,798,029
10,681,981
10,924,376
872,453
12,600,134 3,936,349 16,536,483 5,533,853 1,818,645 306,462
69,412 - 69,412 - - -
6,944,615 - 6,944,615 - 265,976
30,445,198 704,953 31,150,151 38,747 -
109,344,921
24,996,358
134,341,279
2,737,804
-
143,501,321
157,433,288
300,934,609
368,779
265,111
28,347,112
191,738,459
220,085,571
19,854,404
27,491
56,334,774
124,741,230
181,076,004
4,176,483
128,280
272,137,257
-
272,137,257
-
-
55,894
267,361
323,255
208,093
10,990
219,083
-
4,048,608
42,436,293
46,484,901
874,435
(193,566,792)
(154,058,106)
(347,624,898)
(10,258,714) -
(161,330)
470,470,547
392,207,175
862,677,722
23,325,791 2,084,621
566,014
617,215,834
441,259,917
1,058,475,751
34,007,772 13,008,997
1,438,467
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows 8,013,648 883,837 8,897,485 78,790
OPEB related deferred outflows 667,386 147,649 815,035 10,427
Total Deferred Outflows of Resources 8,681,034 1,031,486 9,712,520 89,217
32
CITY OF DUBUQUE, IOWA EXHIBIT 1 (continued)
STATEMENT OF NET POSITION (continued)
JUNE 30, 2022
Primary Government
Component Units
Dubuque
Dubuque
Metropolitan
Dubuque Convention
Governmental
Business -type
Area Solid
Initiatives and and Visitors
Activities
Activities
Total
Waste Agency
Subsidiaries Bureau
LIABILITIES
CURRENT LIABILITIES
Due to business -type activities
$ 1,184,398
$ - $
1,184,398
$ -
$ - $ -
Accounts payable
6,928,664
2,854,118
9,782,782
746,617
691 342,880
Accrued payroll
2,519,266
438,552
2,957,818
36,511
- 58,160
Leases payable
44,395
26,868
71,263
-
-
Loans payable
263,230
35,937
299,167
4,069
Notes payable
-
6,313,000
6,313,000
-
-
General obligation bonds payable
3,435,308
3,119,664
6,554,972
450,000
Revenue bonds payable
-
2,480,000
2,480,000
-
Tax increment financing bonds payable
680,000
-
680,000
-
Accrued compensated absences
656,212
60,768
716,980
3,237
Accrued interest payable
219,450
329,841
549,291
16,550
Intergovernmental payable
4,682
-
4,682
98,718
-
Unearned revenue
24,015,223
24,015,223
-
19,480
OPEB liability
300,644
300,644
-
- -
Total Current Liabilities
40,251,472
15,658,748
55,910,220
1,351,633
691 424,589
NONCURRENT LIABILITIES
Lease Payable
164,142
224,935
389,077
-
- -
Loans payable
3,210,157
18,643
3,228,800
2,804
Notes payable
-
106,795,033
106,795,033
-
-
General obligation bonds payable
43,890,847
27,457,332
71,348,179
6,788,958
Revenue bonds payable
-
29,197,659
29,197,659
-
Landfill closure and postclosure care
-
-
-
3,153,143
Tax increment financing bonds payable
16,974,438
-
16,974,438
-
Accrued compensated absences
6,358,364
777,307
7,135,671
233,020
Net pension liability
10,296,117
109,237
10,405,354
10,341
OPEB liability
4,553,443
973,717
5,527,160
82,958
-
Total Noncurrent Liabilities
85,447,508
165,553,863
251,001,371
10,268,420
- 2,804
Total Liabilities
125,698,980
181,212,611
306,911,591
11,620,053
691 427,393
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
31,190,046
4,151,414
35,341,460
420,000
- -
OPEB related deferred inflows
948,490
236,420
1,184,910
52,548
Lease related deferred inflows
31,759,771
849,691
32,609,462
82,674
Succeeding year property tax
26,205,437
-
26,205,437
-
Deferred amount on refunding
301,116
149,105
450,221
-
Total deferred inflows of resources
90,404,860
5,386,630
95,791,490
555,222
-
NET POSITION
Net investment in capital assets
386,739,779
219,652,664
606,392,443
10,514,233
259,552
Restricted for/by:
Bond ordinance development agreement
2,140,740
3,124,213
5,264,953
-
-
Debt service
59,117
-
59,117
Employee benefits
10,156
10,156
Community development
7,223,503
7,223,503
Iowa Finance Authority Trust
1,638,134
1,638,134
Capital projects
22,528,507
22,528,507
Franchise agreement
525,796
525,796
Endowments, expendable
102,047
102,047
Endowments, nonexpendable
69,412
69,412
Other
1,286,666
1,286,666
-
State statute
-
-
304,409
Landfill closure and post closure care
2,076,301
Minority interest
2,049,077
- -
Unrestricted
(12,530,829)
32,915,285
20,384,456
6,977,694
13,008,306 751,522
Total Net Position
$ 409,793,028
$ 255,692,162 $
665,485,190
$ 21,921,714
$ 13,008,306 $ 1,011,074
See notes to financial statements.
33
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
EXHIBIT 2
FOR THE YEAR ENDED JUNE 30, 2022
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
Dubuque Metropolitan Area Solid Waste
Agency
Total governmental activities
Business -type activities
Sewage disposal works
Water utility
Storrnwater 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
$ 30,548,958 $
5,443,744 $
1,289,679 $
32,120 $
6,765,543 $
(23,783,415) $
$ (23,783,415)
21,942,380
9,406,558
8,587,120
1,107,496
19,101,174
(2,841,206)
(2,841,206)
1,003,870
426,401
11,351
900
438,652
(565,218)
(565,218)
14,452,466
3,564,782
776,595
-
4,341,377
(10,111,089)
(10,111,089)
16,866,498
1,140,618
9,098,761
573,889
10,813,268
(6,053,230)
(6,053,230)
7,210,508
2,533,695
193,083
2,293,437
5,020,215
(2,190,293)
(2,190,293)
2,004,709
-
-
-
-
(2,004,709)
(2,004,709)
$ 57,256 $
185,184 $
- $
- $
185,184 $
127,928 $
$ 127,928
94,086,645
22,700,982
19,956,589
4,007,842
46,665,413
(47,421,232)
(47,421,232)
12,197,134
13,870,390
13,870,390
1,673,256
1,673,256
7,212,652
10,153,939
10,153,939
2,941,287
2,941,287
6,047,606
5,233,932
104,537
7,163,378
12,501,847
6,454,241
6,454,241
2,972,990
2,692,362
87,134
-
2,779,496
(193,494)
(193,494)
4,452,838
4,646,568
-
-
4,646,568
193,730
193,730
4,027,600
405,194
2,090,184
280,678
2,776,056
(1,251,544)
(1,251,544)
129,265
100,763
-
-
100,763
(28,502)
(28,502)
37,040,085
37,103,148
2,281,855
7,444,056
46,829,059
9,788,974
9,788,974
$ 131,126,730 $
59,804,130 $
22,238,444 $
11,451,898 $
93,494,472 $ (47,421,232) $
9,788,974 $
(37,632,258)
$ 6,063,344 $ 7,884,856 $ 42,508 $
$ 7,927,364
132,840 1,501 -
1,501
1,432,778 1,370,899 254,807
1,625,706
$ 7,628,962 $ 9,257,256 $ 297,315 $
$ 9,554,571
General revenues
Property taxes
Local option sales tax
Hotel motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Miscellaneous
Gain (loss) on disposal of capital assets
Transfers
Total general revenues and transfers
Change in Net Position
Net position, beginning of year, as restated
Net position, ending of year
$ 1,864,020 $ - $
- (131,339) -
- - 192,928
1,864,020 (131,339) 192,928
39,406,493
39,406,493
12,738,941
12,738,941
2,915,854
2,915,854
6,044,713
6,044,713
12,000,140
12,000,140
-
-
(390,365)
119,466
(270,899)
26,425
-
552
-
-
-
-
274,063
-
244,104
(206,351)
37,753
(13,299)
-
(7,430,546)
7,430,546
-
-
-
-
65,529,334
7,343,661
72,872,995
13,126
274,063
552
18,108,102
17,132,635
35,240,737
1,877,146
142,724
193,480
391,684,926
238,559,527
630,244,453
20,044,568
12,865,582
817,594
$ 409,793,028 $
255,692,162 $
665,485,190 $
21,921,714 $
13,008,306 $
1,011,074
34
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35
CITY OF DUBUQUE, IOWA
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30. 2022
Revenue
EXHIBIT 3
Tax
Increment
Community
General
Financing
Development
ASSETS
Cash and investments
$ 63,557,629 $
7,177,417 $
2,605,812
Receivables
Property tax
Delinquent
257,950
189,285
-
Succeeding year
23,899,430
-
Accounts and other
3,240,660
Special assessments
9,075
-
-
Accrued interest
29,479
38,809
766
Notes
3,003,823
-
3,483,065
Intergovernmental
1,318,816
924,276
Leases
31,905,826
-
Due from other funds
737,499
-
Inventories
273,198
302,133
Prepaid items
354,542
-
13,424
Restricted cash and investments
277,705
3,211,039
-
Total Assets
128,865,632
10,616,550
7,329,476
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
1,696,842
24,122
578,168
Accrued payroll
2,277,884
-
42,822
Intergovernmental payable
-
-
Due to other funds
-
Unearned revenue
24,009,013
-
-
Total Liabilities
27,983,739
24,122
620,990
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax
23,899,430
Lease related deferred inflows
31,759,771
Special assessments
9,075
-
Grants
20,137
103,762
Other
472,057
-
Total Deferred Inflows of Resources
56,160,470
103,762
FUND BALANCES
Nonspendable
Endowment corpus
-
-
Inventory
273,198
302,133
Long-term notes receivable
3,003,823
-
Prepaid items
354,542
13,424
Restricted
Endowments
-
-
Library
Police
Veterans
Debt service
-
Bond ordinance
-
2,140,740
Capital improvements
186,705
8,451,688
Franchise agreement
-
-
Special assessments
Iowa Finance Authority Trust
-
Community programs
6,289,167
Employee benefits
-
Committed, capital improvements
-
Assigned
4,292,669
Unassigned
36,610,486
-
-
Total Fund Balances
44,721,423
10,592,428
6,604,724
Total Liabilities, Deferred Inflows of Resources,
and Fund Balances $
128,865,632 $
10,616,550 $
7,329,476
See notes to financial statements.
36
Other
Governmental
Debt Service Funds Total
$ 57,478 $ 26,176,215 $ 99,574,551
4,280
26,808
478,323
68,771
2,237,236
26,205,437
-
80,086
3,320,746
-
300,064
309,139
19
6,213
75,286
-
999,514
7,486,402
2,500,669
4,743,761
-
31,905,826
-
737,499
675,409
1,250,740
99,407
467,373
-
9,180,802
12,669,546
130,548
42,282,423
189,224,629
2,407,485
4,706,617
152,500
2,473,206
4,682
4,682
737,499
737,499
6,210
24,015,223
3,308,376
31,937,227
68,771 2,237,236
26,205,437
- -
31,759,771
294,374
303,449
- 159,920
283,819
2,660 20,588
495,305
71,431 2,712,118
59,047,781
69,412
69,412
675,409
1,250,740
-
3,003,823
99,407
467,373
102,047
102,047
1,117,446
1,117,446
8,667
8,667
- 154,834
154,834
59,117 -
59,117
- -
2,140,740
20,717,710
29,356,103
525,796
525,796
5,719
5,719
1,638,134
1,638,134
934,336
7,223,503
10,156
10,156
10,202, 856
10,202,856
-
4,292,669
- -
36,610,486
59,117 36,261,929
98,239,621
$ 130,548 $ 42,282,423 $ 189,224,629
37
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m
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET EXHIBIT 3-1
TO THE STATEMENT OF NET POSITION
JUNE 30, 2022
Total fund balances - governmental funds $ 98,239,621
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital and lease assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital and leased assets 613,616,652
Accumulated depreciation (193,267,213)
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:
Special assessments 303,449
Grants and other 779,124
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 (30,921,915)
Deferred outflows of resources 8,449,786
420,349,439
1,082,573
(22,472,129)
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. 5,094,309
Internal service funds allocated to business -type activities (1,184,398)
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
(47,326,155)
Tax increment financing bonds
(17,654,438)
Loans payable
(3,473,387)
Lease payable
(208,537)
Deferred amount on debt ref endings
(301,116)
Accrued interest
(219,450)
Compensated absences
(7,014,576)
Net pension liability
(10,264,641)
Total OPEB liability
(4,854,087)
(91,316,387)
Net position of governmental activities
$ 409,793,028
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, 2022
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 and fiscal charges
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of debt
Premium on bonds
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING, AS RESTATED
FUND BALANCES, ENDING
See notes to financial statements.
Revenue
Tax
Increment Community
General Financing Development
$ 39,706,726 $
12,204,539 $
-
-
-
2,500
2,211,503
-
5,545,057
4,648,280
15,969,352
17,991
303,348
-
(322,002)
(298,949)
40,079
715,711
43,279
12,000,140
-
-
1,068,618
500,000
11,685
77,198,453
12,405,590
4,763,814
31,255,943
7,565,186 -
860,876 20,000
14,403,168 - 84,538
4,494,164 2,654,994 3,106,165
6,962,506 - -
55,450 -
71,205 869
2,255,635 - 576,007
67,924,133 2,654,994 3,787,579
9,274,320 9,750,596 976,235
3,440,819 53,983 70,000
(3,426,356) (8,672,933) (252,000)
11,500
282,302
308,265 (8,618,950) (182,000)
9,582,585 1,131,646 794,235
35,138,838 9,460,782 5,810,489
$ 44,721,423 $ 10,592,428 $ 6,604,724
40
Other
Governmental
Debt Service Funds Total
$ 291,884 $ 8,902,852 $
61,106,001
- 40,496
42,996
-
2,211,503
17,375,620
27,568,957
164,750
16,152,093
- -
303,348
93,821 85,562
(401,489)
- 50,921
809,911
-
12,000,140
- 1,289,786
2,870,089
385,705 27,909,987
122,663,549
74
31,256,017
8,078,039
15,643,225
-
880,876
138,998
14,626,704
8,501,510
18,756,833
968,275
7,930,781
4,462,667 - 4,518,117
2,439,179 182,432 2,693,685
- 14,603,765 17,435,407
6,901,846 32,473,093 113,741,645
(6,516,141) (4,563,106) 8,921,904
9,565,000
9,565,000
- 123,888
123,888
6,520,520 2,783,238
12,868,560
(3,844) (4,410,083)
(16,765,216)
5,827
17,327
- 180
282,482
6,516,676 8,068,050
6,092,041
535 3,504,944 15,013,945
58,582 32,756,985 83,225,676
$ 59,117 $ 36,261,929 $ 98,239,621
41
THIS PAGE IS INTENTIONALLY LEFT BLANK
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, 2022
Net change in fund balances - total governmental funds $ 15,013,945
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
16,815,291
Transfers of capital assets to enterprise funds
(3,553,890)
Contributions from developers
179,824
Depreciation and amortization expense
(10,286,457)
3,154,768
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.
146,402
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
10,188
Special assessments
(40,597)
Grants and other
(3,594,441)
(3,624,850)
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
(9,688,888)
Debt repayments
4,530,380
(5,158,508)
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds. These items consist of:
Increase in accrued interest
(19,907)
Amortization of bond discount/premium
544,568
Increase in compensated absences
(467,986)
Deferred amount on debt refundings
25,093
Pension adjustment
7,744,030
OPEB adjustment
(36,761)
Total additional expenses
7,789,037
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.
787,308
Change in net position of governmental activities
$
18,108,102
See notes to financial statements.
43
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Leases
Accrued interest
Intergovernmental
Prepaid items
Inventories
Total Current Assets
NONCURRENT ASSETS
Restricted cash and investments
Lease receivable
Capital and lease assets
Land
Buildings
Improvements to other than buildings
Machinery and equipment
Leased equipment
Leased real estate
Construction in progress
Accumulated depreciation and amortization
Net Capital and Lease 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
$ 4,659,562 $ 10,327,549 $ 19,127,764
1,887,052
1,207,358
616,836
-
153,714
-
6,677
1,062
6,042
-
-
118,538
2,338
8,325
27,486
260,629
1,027,727
-
6,816,258
12,725,735
19, 896,666
308,960 1,138,785 2,080,000
- 704,953 -
254,858
209,244
21,596,104
72,257,722
11,080,162
-
53,994,700
1,635,950
130,000,151
39,055,561
70,350,329
1,480,213
267,361
-
-
1,861,094
3,568,099
35,216,155
(71,840,278)
(31,156,968)
(23,078,846)
95,851,018
55,686,816
165,213,777
96,159,978
57,530,554
167,293,777
102,976,236
70,256,289
187,190,443
168,433
192,387
36,962
26,394
49,963
8,343
194,827
242,350
45,305
44
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
Governmental
Activities -
Internal Service
Funds
$ 2,118,197 $ 4,488,919 $ 40,721,991 $ 8,073,711
218,367
409,365
4,338,978
138,004
-
-
153,714
-
517
-
14,298
1,878
-
1,150,212
1,268,750
-
9,168
14,696
62,013
-
-
20,244
1,308,600
103,924
2,346,249
6,083,436
47,868,344
8,317,517
181,319 227,285 3,936,349 -
- - 704,953 -
2,900,152
36,000
24,996,358
-
62,216,456
11,878,948
157,433,288
-
4,625,254
1,482,404
191,738,459
-
2,174,614
11,680,513
124,741,230
361,329
-
-
267,361
-
10,990
-
10,990
-
1,790,945
-
42,436,293
-
(21,209,639)
(6,772,375)
(154,058,106)
(299,580)
52,508,772
18,305,490
387,565,873
61,749
52,690,091
18,532,775
392,207,175
61,749
55,036,340
24,616,211
440,075,519
8,379,266
69,856
416,199
883,837
231,248
14,069
48,880
147,649
-
83,925
465,079
1,031,486
231,248
EXHIBIT 5
45
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2022
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Leases Payable
Accrued payroll
Loans payable
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Accrued interest payable
Total Current Liabilities
NONCURRENT LIABILITIES
Leases Payable
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
Leases 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
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds.
NET POSITION OF BUSINESS -TYPE ACTIVITIES
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 580,826 $
722,687 $
1,312,312
21,197
-
-
95,244
105,909
20,147
668,359
772,998
1,067,374
-
360,000
2,120,000
3,290,000
741,000
2,282,000
22,812
32,078
881
114,204
44,689
156,188
4,792,642
2,779,361
6,958,902
224,935 -
7,810,371
9,190,424
5,384,153
-
2,951,386
26,246,273
56,094,622
12,480,019
38,220,392
183,280
266,511
14,114
23,347
26,823
4,696
209,987
251,466
66,366
64,546,542
25,166,629
69,935,994
69,339,184
27,945,990
76,894,896
880,107
1,003,032
199,225
51,355
49,137
35,272
-
849,691
-
20,171
114,895
11,752
951,633
2,016,755
246,249
36,179,232
29,264,606
89,045,381
-
567,025
2,080,000
(3,298,986)
10,704,263
18,969,222
$ 32,880,246 $
40,535,894 $
110,094,603
46
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
Governmental
Activities -
Internal Service
Funds
$ 34,044 $
204,249 $
2,854,118 $
2,222,047
5,671
-
26,868
-
27,944
189,308
438,552
46,060
35,937
-
35,937
-
558,464
52,469
3,119,664
-
-
-
2,480,000
-
-
-
6,313,000
-
-
4,997
60,768
-
11,158
3,602
329,841
-
673,218
454,625
15,658,748
2,268,107
-
-
224,935
-
18,643
-
18,643
-
4,019,728
1,052,656
27,457,332
-
-
-
29,197,659
-
-
-
106,795,033
-
17,682
295,720
777,307
-
7,722
46,649
109,237
31,475
57,034
388,864
973,717
-
4,120,809
1,783,889
165,553,863
31,475
4,794,027
2,238,514
181,212,611
2,299,582
288,459
1,780,591
4,151,414
1,216,623
11,144
89,512
236,420
-
-
-
849,691
-
2,287
-
149,105
-
301,890
1,870,103
5,386,630
1,216,623
47,857,208
17,306,237
219,652,664
61,749
477,188
-
3,124,213
-
1,689,952
3,666,436
31,730,887
5,032,560
$ 50,024,348 $
20,972,673
254,507,764 $
5,094,309
1,184,398
$ 255,692,162
EXHIBIT 5
47
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain (loss) on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING, AS RESTATED
NET POSITION, ENDING
Adjustment to reflect the consolidation of internal service
fund activities related to enterprise funds
CHANGE IN NET POSITION OF BUSINESS -TYPE
ACTIVITIES
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Works
Water Stormwater
Utility Utility
$ 13,801,896 $ 10,106,464 $ 5,172,452
65,395 45,704 17,282
13,867,291 10,152,168 5,189,734
3,522,154
2,574,015
1,274,403
836,734
946,065
39,877
958,035
214,915
54,740
1,853,916
1,598,658
1,524,225
119,023
109,846
57,923
3,451,693
1,224,193
1,961,305
10,741,555
6,667,692
4,912,473
3,125,736 3,484,476 277,261
-
-
7,252,125
10,335
45,840
48,929
-
-
37,161
(1,524,005)
(584,832)
(1,166,986)
3,099
1,771
(1,496)
(1,510,571)
(537,221)
6,169,733
1,615,165
2,947,255
6,446,994
- - 1,783,427
103,372 785,036 497,100
(142,884) (142,884) (130,442)
1,575,653 3,589,407 8,597,079
31,304,593 36,946,487 101,497,524
$ 32,880,246 $ 40,535,894 $ 110,094,603
48
Business -type Activities -Enterprise Funds
Governmental
Other
Activities -
Parking
Enterprise
Internal
Facilities
Funds
Total
Service Funds
$ 2,552,283 $
5,044,615 $
36,677,710
$ 15,453,366
140,079
85,389
353,849
132,285
2,692,362
5,130,004
37,031,559
15,585,651
772,899
4,723,849
12,867,320
1,893,972
326,728
112,992
2,262,396
38,475
169,944
1,043,183
2,440,817
118,700
422,537
1,760,891
7,160,227
11,843,942
115,613
94,655
497,060
686,760
1,140,199
930,491
8,707,881
24,449
2,947,920
8,666,061
33,935,701
14,606,298
(255,558) (3,536,057) 3,095,858 979,353
-
2,370,862
9,622,987
-
4,518
7,506
117,128
13,462
87,134
-
124,295
-
(36,426)
(675)
(3,312,924)
-
-
(190,224)
(186,850)
13,263
55,226
2,187,469
6,364,636
26,725
(200,332)
(1,348,588)
9,460,494
1,006,078
1,773,290
-
3,556,717
-
280,000
2,701,341
4,366,849
-
(53,983)
-
(470,193)
-
1,798,975
1,352,753
16,913,867
1,006,078
48,225,373
19,619,920
237,593,897
4,088,231
$ 50,024,348 $
20,972,673 $
254,507,764 $
5,094,309
218,768
$ 17,132,635
EXHIBIT 6
49
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2022
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
Principal and interest received from lease receivable
Proceeds from issuance of debt
Premium on debt issuance
Payment of debt
Interest paid
Intergovernmental grant proceeds
NET CASH PROVIDED (USED FOR) CAPITAL
AND RELATED FINANCING ACTIVITIES
CASH FLOWS PROVIDED BY INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
Business -type Activities -Enterprise Funds
Sewage
Disposal
Water
Stormwater
Parking
Works
Utility
Utility
Facilities
$ 13,937,495 $
10,413,704 $
5,333,119 $
2,476,936
(3,535,076)
(2,896,658)
(1,536,608)
(1,055,905)
(3,757,033)
(2,891,616)
(1,334,111)
(851,939)
65,395
45,704
17,282
140,079
6,710,781
4,671,134
2,479,682
709,171
103,372
785,036
497,100
280,000
(142,884)
(142,884)
(130,442)
(53,983)
37,161
87,134
(39,512)
642,152
403,819
313,151
3,099
1,771
(1,496)
-
(991,723)
(3,416,920)
(6,250,820)
(17,655)
-
12,137
-
434,604
4,635,256
2,730,557
-
181,309
-
(3,751,436)
(6,824,140)
(3,283,549)
(583,376)
(1,596,246)
(796,903)
(1,450,631)
(105,291)
9,944,578
(5,901,702)
(6,207,490)
1,688,639
(706,322)
13,808
35,586
50,109
4,301
783,375
(858,618)
4,622,249
320,301
CASH AND CASH EQUIVALENTS, BEGINNING, AS RESTATED 4,185,147 11,799,752 14,505,515 1,979,215
CASH AND CASH EQUIVALENTS, ENDING $ 4,968,522 $ 10,941,134 $ 19,127,764 $ 2,299,516
50
EXHIBIT 7
Business -type Activities -Enterprise Funds
Governmental
Other Activities -
Enterprise Internal
Funds Total Service Funds
$ 5,154,391 $ 37,315,645 $ 15,499,710
(2,961,840) (11,986,087) (12,714,478)
(5,220,877) (14,055,576) (2,277,122)
85,389 353,849 132,285
(2,942,937) 11,627,831 640,395
2,701,341 4,366,849
- (470,193)
- (3,034)
- 124,295
2,466,901 2,466,901
5,168,242 6,487,852 (3,034)
3,374 13,263
(2,925,649) (13,602,767) (31,282)
12,137
7,800,417
181,309
(39,479) (14,481,980)
(1,763) (3,950,834)
9,944,578
(2,966,891) (14,093,766) (18,019)
7,506 111,310 14,840
(734,080) 4,133,227 634,182
5,450,284 37,919,913 6,466,459
$ 4,716,204 $ 42,053,140 $ 7,100,641
(Continued)
51
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30. 2022
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss) $ 3,125,736 $ 3,484,476 $ 277,261 $ (255,558)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Noncash lease revenue
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 - pension related
(Increase) decrease in deferred outflows - OPEB related
Increase in deferred inflows - pension related
Increase in deferred inflows - OPEB related
Increase in deferred amount on refunding
Increase (decrease) in total OPEB liability
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
3,451,693 1,224,193 1,961,305 1,140,199
- (39,576) - -
135,599
307,240
160,667
(75,347)
40,014
(321,883)
13,618
(95)
192,618
294,709
126,539
(20,988)
47,671
26,997
4,825
8,559
(1,209,256)
(1,378,516)
(272,744)
(374,056)
94,121
106,960
22,138
11,467
(9,138)
(31,844)
(1,311)
(10,186)
832,642
948,915
188,542
273,756
39,979
37,192
30,636
8,585
-
13,734
-
-
(30,898)
(1,463)
(31,794)
2,835
3,585,045
1,186,658
2,202,421
964,729
$ 6,710,781 $
4,671,134 $
2,479,682 $
709,171
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO SPECIFIC ASSETS ON THE COMBINED
STATEMENT OF NET POSITION
Cash and investments 4,968,522 11,466,334 21,207,764 2,299,516
Less items not meeting the definition of cash equivalents - (525,200) (2,080,000) -
Cash and cash equivalents at end of the year 4,968,522 10,941,134 19,127,764 2,299,516
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources
$
- $
- $
22,827
$ -
Amortization of bond discount (premium)
$
65,953 $
20,097 $
282,840
$ 67,386
Acquisition of capital assets through accounts and retainage
payable
$
317,393 $
428,614 $
977,726
$ 22,175
Contributions of capital assets from Governmental Activities
$
- $
- $
1,760,600
$ 1,773,290
See notes to financial statements.
52
EXHIBIT 7
(continued)
Business-tvne Activities -Enterprise Funds
Governmental
Other Activities -
Enterprise Internal
$ (3,536,057) $ 3,095,858 $ 979,353
930,491 8,707,881 24,449
- (39,576) -
109,776
637,935
46,344
(14,455)
(282,801)
(51,598)
64,336
657,214
24,997
51,019
139,071
4,803
(2,327,313)
(5,561,885)
(1,670,284)
89,481
324,167
131,239
(17,387)
(69,866)
-
1,689,173
3,933,028
1,151,092
68,751
185,143
-
-
13,734
(50,752)
(112,072)
593,120
8,531,973
(338,958)
$ (2,942,937) $
11,627,831 $
640,395
4,716,204 44,658,340 7,100,641
- (2,605,200) -
4,716,204 42,053,140 7,100,641
$ $
22,827
$
$ 852 $
437,128
$
$ 121,413 $
1,867,321
$
$ $
3,533,890
$
53
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY NET POSITION EXHIBIT 8
CUSTODIAL FUNDS
JUNE 30, 2022
ASSETS
Cash and investments
Accrued interest
Total Assets
NET POSITION
Restricted for individuals, organizations,
and other governments
Total Net Position
See notes to financial statements.
Dog Track
Depreciation
Fund
$ 1,225,256
413
1,225,669
1,225,669
$ 1,225,669
54
CITY OF DUBUQUE, IOWA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION EXHIBIT 9
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
ADDITIONS
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.
Dog Track
Depreciation
Fund
$ 60,000
2,895
62,895
15,344
15,344
47,551
1,178,118
$ 1,225,669
55
THIS PAGE IS INTENTIONALLY LEFT BLANK
56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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
57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 has a June 30 year end. During the year ended June 30, 2022, $578,554 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 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 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, 2022
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. 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 fiduciary
funds, 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, 2022
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, including the custodial funds, use the economic resources measurement focus and the
full accrual basis of accounting. The City reports Custodial Funds to account for assets held by the City
as an agent for the Dubuque Racing Association. This fund is used to account for the resources held for
improvements at the greyhound racing facility.
60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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, 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 lendingiborrowing 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, 2022
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, 2022, and 2022 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 assessment receivable represents the amounts due from individuals for work done which benefits
their property. These assessments are payable by individuals 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, 2022
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 and Lease Assets
Capital assets, and lease 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 including lease 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.
Capital assets of the primary government, as well as the component units, are depreciated or amortized
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, 2022
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
Leases - Lessor
The City is a lessor in leases of real estate and buildings. The City recognizes a lease receivable and a
deferred inflow of resources in the government -wide, proprietary, and governmental fund financial
statements. For regulated lessor contracts, the City recognizes inflows of resources (revenues) based on
the payment provisions of the lease contract.
At the commencement of a lease, the City initially measures the lease receivable at the present value of
payments expected to be received during the lease term. Subsequently, the lease receivable is reduced by
the principal portion of lease payments received. The deferred inflow of resources is initially measured as
the initial amount of the lease receivable, adjusted for lease payments received at or before the lease
commencement date. Subsequently, the deferred inflow of resources is recognized as revenue over the
life of the lease term.
Key estimates and judgments include how the City determines 1) the discount rate it uses to discount the
expected lease receipts to present value 2) lease term, and 3) lease receipts. The City uses its estimated
incremental borrowing rate as the discount rate for leases. The lease term includes the noncancellable
period of the lease. Lease receipts included in the measurement of the lease receivable is composed of
fixed payments from the lessee. The City monitors changes in circumstances that would require a
remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that
are expected to significantly affect the amount of the lease liability.
Deferred Outflows of Resources
Deferred outflows of resources represent a consumption of net assets 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.
Leases - Lessee
The City is a lessee in leases of real estate, buildings, and equipment. The City recognizes a lease liability
and an intangible right -to -use lease asset (lease asset) in the government -wide and proprietary financial
statements.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
At the commencement of a lease, the City initally measures the lease liability at the present value of
payments expected to be made during the lease term. Subsequently, the lease liability
is reduced by the principal portion of lease payments made. The lease asset is initially measured as the
initial amount of the lease liability, adjusted for lease payments made at or before the lease
commencement date, plus certain initial direct costs. Subsequently, the lease asset is amortized on a
straight-line basis over the shorter of the lease term or the useful life of the underlying asset.
Key estimates and judgments related to leases include how the City determines 1) the discount rate it uses
to discount the expected lease payments to present value 2) lease term, and 3) lease payments. The City
uses the interest rate charged by the lessor as the discount rate. When the interest rate charged by the
lessor is not provided, the City generally uses its estimated incremental borrowing rate as the discount
rate for leases. The lease term includes the noncancellable period of the lease. Lease payments included
in the measurement of the lease liability are composed of fixed payments and purchase option price that
the City is reasonably certain to exercise. The City monitors changes in circumstances that would require
a remeasurement of its lease and will remeasure the lease asset and liability if certain changes occur that
are expected to significantly affect the amount of the lease liability.
Lease assets are reported with other capital assets and lease liabilities are reported with long-term debt on
the statement of net position.
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.
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 a consumption of net assets 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, OPEB, and lease 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 and lease assets, net of accumulated
depreciation and amortization, 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
$8,774,391 for the governmental activities and $1,108,006 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, 2022 consists of $59,117 for debt service and $10,156 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.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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.
67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30.2022
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. 87
As of July 1, 2021 the City adopted GASB Statement No. 87, Leases. The objective of this Statement is
to better meet the information needs of financial statement users by improving accounting and financial
reporting for leases by governments. The effect on the implementation of this standard on beginning net
position is disclosed in Note 18.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 2 — DEFICIT FUND EQUITY
The following fund had a deficit net position amount as of June 30, 2022:
Internal Service Fund:
General Service
$ 223,643
The General Service deficit will be addressed during next fiscal year's reallocation of expenses.
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS
Cash on Hand. Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year-end was $12,231 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 $136,833,179, and the bank balance
was $136,430,667. The City's deposits in banks at June 30, 2022, 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
$16,243,521, and the bank balance was $15,452,889. The Agency's deposits in banks at June 30, 2022,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Investments. As of June 30, 2022, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturities (In Years)
Investment Type
Less Than 1
1 to 5
6 to 10
More than 10
Total
Money Market Funds-
U.S. Treasury
$ 1,081,109
$ -
$ -
$ -
$ 1,081,109
U.S. Treasury Securities
1,231,123
1,557,252
1,561,957
2,458,172
6,808,504
Federal Agency Obligations
798,077
12,442,555
2,504,562
5,641,221
21,386,415
Corporate Stock
79,968
-
-
-
79,968
$ 3,190,277
$ 13,999,807
$ 4,066,519
$ 8,099,393
$ 29,355,996
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.
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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.
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
$
12,231
Carrying amount of deposits
136,833,179
Carrying amount of investments
29,355,996
Total
$
166,201,406
Government -wide
Cash and investments
$
148,370,251
Cash and investments - expendable
16,536,483
Cash and investments - nonexpendable
69,412
Fiduciary
Cash and investments
1,225,256
Total
$
166,201,402
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 investments
Cash and investments - restricted
Total
$ 1,200
15,452,889
$ 15,454,089
$ 9,920,236
5,533,853
$ 15,454,089
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30. 2022
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, 2021) follows:
Deposits
Beneficial interest in assets held by others
Total
Cash and investments
Cash and investments -restricted
Total
$ 10,330,132
1,818,645
$ 12,148,777
$ 10,330,132
1,818,645
$ 12,148,777
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, 2022) follows:
Deposits
Total
Cash and investments
Cash and investments -restricted
Total
$ 1,141,867
$ 1,141,867
$ 835,405
306,462
$ 1,141,867
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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, 2022 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
$ -
Gronen Adaptive
300,000
2
2006
5/l/2036
132,653
8,540
CARich Properties, LLC
120,000
-
2020
9/l/2030
99,000
12,000
Franklin Investments, LLC
300,000
3
2021
4/1/2041
258,000
-
HJD Landlord LLC
466,000
3
2016
4/l/2036
436,785
25,868
Interstate Building LLP
300,000
3
2010
9/22/2015
181,492
19,685
Downtown Housing Incentive Loan
Caradco Landlord, LLC
4,500,000
3
2012
6/1/2030
2,974,369
213,174
$ 4,366,299
$ 279,267
Interest Current
Rate Rnlnnre Pnrtinn
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
(1) Principal payments deferred if one tenant is low income
6 % $
241,300
$ 48,000
6
2,260
1,440
6
1,084,072
143,000
6
214,606
3,607
-
99,006
7,000
-
30,895
12,000
6
267,375
6,000
-
998,074
25,473
-
97,955
13,000
6
5,824
1,000
-
78,736
2,000
$ 3,120,103 $ 262,520
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 4 — NOTES RECEIVABLE (continued)
At December 31, 2021, Dubuque Initiatives and Subsidiaries had the following notes receivable:
City of Dubuque, 5.00%, unsecured, matures July 2023 $ 71,896
Various Small Businessses, 1%, unsecured, matures July 2023 (2) 538,263
Less: allowance for doubtful accounts (46,715)
Less: current maturities (297,468)
Noncurrent portion $ 265,976
(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
76 local participants that participated in this bridge loan program. Notes receivable are unsecured and due in
monthly payments ranging from $135 to $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 May 2024.
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2022, include amounts due to/from other funds. Interfund balances are as follows:
Due From Due To
Other Funds Other Funds
Governmental activities:
General Fund $ 737,497 $ -
Nonmajor Governmental - 737,497
$ 737,497 $ 737,497
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.
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 5 - INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2022, consisted of the following:
Transfers From
Tax
Sewer
Increment
Community
Debt
Nonmajor
Disposal
Water
Stormwater
Parking
Transfer to
General
Financing
Development
Service
Governmental
Works
Utility
Utility
Facilities
Total
General
$
$ 447,277
$
$
$ 2,669,425
$ 142,884
$ 142,884
$ 38,349
$
$ 3,440,819
Community Development
70,000
-
-
-
-
70,000
Tax increment financing
-
-
53,983
53,983
Debt service
401,929
4,994,997
1,123,594
-
-
6,520,520
Nonmajor
Governmental
214,721
2,118,616
252,000
105,808
92,093
2,783,238
Sewage Disposal Works
99,058
-
-
4,314
-
103,372
Water utility
22,352
762,043
641
-
785,036
Stormwater utility
178,000
-
319,100
-
497,100
Parking facilities
-
280,000
-
-
280,000
Nonmajor enterprise
2,510,296
-
-
3,844
187,201
-
2,701,341
$ 3,426,356
$ 8,672,933
$ 252,000
$ 3,844
S 4,410,083
$ 142,884
$ 142,884
$ 130,442
$ 53,983
$ 17,235,409
Net capital assets of $1,760,600 and $1,773,290 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.
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 — CAPITAL AND LEASE ASSETS
Capital asset activity for the year ended June 30, 2022, was as follows:
Primary Government:
Governmental activities:
Beginning
Balance Transfers
Transfers
Ending
(as restated) In
out
Increases
Decreases
Balance
Capital assets, not being
depreciated:
Land
$ 105,126,171 $
$ -
$ 4,218,750
$
$ 109,344,921
Construction in Progress
3,038,876
(3,533,890)
8,360,717
(3,817,095)
4,048,608
Total Capital assets, not
being depreciated
108,165,047
(3,533,890)
12,579,467
(3,817,095)
113,393,529
Capital and lease assets,
being depreciated:
Buildings
143,301,022
215,627
(15,328)
143,501,321
Improvements other
than buildings
27,926,021
421,091
-
28,347,112
Machinery and equipment
55,449,960
1,587,861
(703,046)
56,334,774
Leased equipment
56,386
-
(492)
55,894
Leased real estate
208,093
-
-
208,093
Infrastructure
265,956,732
6,180,525
-
272,137,257
Total capital and lease assets,
being depreciated
492,898,214
8,405,104
(718,866)
500,584,452
Less accumulated depreciation
and amortization for:
Buildings
(48,134,720)
(2,406,260)
7,153
(50,533,827)
Improvements other
than buildings
(13,618,463)
(860,256)
-
(14,478,719)
Machinery and Equipment
(32,560,003)
(2,968,775)
677,797
(34,850,981)
Leased equipment
(33,430)
-
(33,430)
Leased real estate
(20,809)
(20,809)
Infrastructure
(89,646,889)
(4,002,138)
(93,649,027)
Total accumulated
depreciation
and amortization
(183,960,075)
(10,291,668)
684,950
(193,566,792)
Total capital and lease assets,
being depreciated, net
308,938,139
(1,886,564)
(33,916)
307,017,659
Governmental activities
capital and lease assets, net
$ 417,103,186 $
$ (3,533,890)
$ 10,692,903
$ (3,851,011)
$ 420,411,188
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 — CAPITAL AND LEASE ASSETS (continued)
Business -type activities:
Capital and lease assets, not
being depreciated:
Land
Construction in progress
Total Capital and lease assets,
not being depreciated
Capital and lease assets,
being depreciated:
Buildings
Improvements other
than buildings
Machinery and equipment
Leased equipment
Leased real estate
Total capital and lease assets,
being depreciated
Less accumulated depreciation
and amortization for:
Buildings
Improvements other
than buildings
Machinery and equipment
Leased equipment
Leased real estate
Total accumulated
depreciation
Total capital and lease assets,
being depreciated, net
Beginning
Balance Transfers
(as restated) In
$ 24,793,823 $ - $
44,479,731 3,533,890 _
69,273,554 3,533,890
Transfers Ending
Out Increases Decreases Balance
$ 202,535 $ - $ 24,996,358
10,628,614 (16,205,942) 42,436,293
10,831,149 (16,205,942) 67,432,651
158,590,934 -
-
(1,157,646)
157,433,288
183,083,727 -
8,654,732
-
191,738,459
115,764,515 -
10,369,672
(1,392,957)
124,741,230
267,361 -
-
267,361
10,990 -
-
10,990
457,717,527 -
19,024,404
(2,550,603)
474,191,328
(58,694,999) -
(2,067,646)
951,043
(59,811,602)
(41,747,419) - (3,046,232) - (44,793,651)
(47,244,169) - (3,564,385) 1,385,319 (49,423,235)
- (24,123) - (24,123)
(5,495) (5,495)
(147,686,587) - (8,707,881) 2,336,362 (154,058,106)
310,030,940 -
Business -type activities
capital and lease assets, net $ 379,304,494 $ 3,533,890 $
- 10,316,523 (214,241) 320,133,222
$ 21,147,672 $ (16,420,183) $ 387,565,873
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 6 — CAPITAL AND LEASE ASSETS (continued)
Depreciation and amortization expense was charged to functions/programs for the primary government as
follows:
Governmental activities:
Public safety $ 816,930
Public works 6,143,146
Health and social services 2,426
Culture and recreation 2,431,871
Community and economic development 43,070
General government 829,776
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 24,449
Total depreciation and amortization expense - governmental activities $ 10,291,668
Business -type activities:
Sewage disposal works $ 3,451,693
Water utility 1,224,193
Stormwater utility 1,961,305
Parking facilities 1,140,199
Refuse collection 207,266
Salt 27,639
Transit system 695,586
Total depreciation and amortization expense - business -type activities $ 8,707,881
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 6 — CAPITAL AND LEASE ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency (Component Unit):
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Capital assets, being
depreciated:
Buildings
Improvements other
than buildings
Machinery and equipment
Total capital assets, being
depreciated
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Machinery and equipment
Total accumulated
depreciation
Total capital assets, being
depreciated, net
Dubuque Metropolitan Area
Solid Waste, capital assets
Beginning
Balance Increases
Ending
Decreases Balance
$ 2,737,804
$ -
$ -
$ 2,737,804
866,875
7,560
-
874,435
3,604,679
7,560
-
3,612,239
368,779
-
-
368,779
19,869,824
-
(15,420)
19,854,404
4,280,286
165,963
(269,766)
4,176,483
24,518,889
165,963
(285,186)
24,399,666
(120,096)
(34,434)
-
(154,530)
(6,920,784)
(747,673)
7,196
(7,661,261)
(2,431,749)
(275,865)
264,691
(2,442,923)
(9,472,629)
(1,057,972)
271,887
(10,258,714)
15,046,260 (892,009) (13,299) 14,140,952
$ 18,650,939 $ (884,449) $ (13,299) $ 17,753,191
Depreciation expense of $1,057,972 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 2022, the City issued $9,565,000 of general
obligation bonds, which were used for financing new projects.
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, 2022, are as follows:
Date of
Interest
Purpose
Issue
Maturity Dates
Rates
Corporate Purpose Series 2016A
04/04/2016
06/01/17-06/01/35
2.00-3.75
Corporate Purpose Refunding
Series 2016B
04/04/2016
06/01/16-06/01/28
2.00-3.00
Corporate Purpose Series 2016C
04/04/2016
06/01/17-06/01/35
2.00-3.13
Corporate Purpose Series 2017A
04/17/2017
06/01/18-06/01/30
3.00
Corporate Purpose
Refunding Series 2017B
04/17/2017
06/01/18-06/01/30
3.00
Corporate Purpose
Refunding Series 2017C
04/17/2017
06/01/18-06/01/30
3.00-3.45
Corporate Purpose Series 2018A
03/19/2018
06/01/18-06/01/31
3.00-4.00
Corporate Purpose
Refunding Series 2018B
03/19/2018
06/01/18-06/01/26
3.00-3.15
Corporate Purpose Series 2019A
06/20/2019
06/01/22-06/01/39
3.00
Corporate Purpose Series 2019B
06/20/2019
06/20/20-06/01/27
3.00
Corporate Purpose
Refunding Series 2019C
07/03/2019
06/01/20-06/01/32
3.00
Corporate Purpose
Refunding Series 2021A
06/02/2021
06/01/22-06/01/41
2.00
Corporate Purpose
Refunding Series 2021B
06/02/2021
06/01/22-06/01/36
2.00
Corporate Purpose
Refunding Series 2022A
05/16/2022
06/01/22-06/01/42
4.00-4.125
Corporate Purpose
Refunding Series 2022B
05/16/2022
06/01/22-06/01/42
4.00-4.70
Amount Amount
Originally Outstanding
$ 2,830,000 $
2,040,000
10,920,000
2,665,000
4,145,000
3,035,000
8,495,000
3,232,584
9,745,500
6,245,000
2,120,000
1,455,000
4,950,000
3,614,978
1,005,000
540,000
2,240,000
2,175,000
860,000
545,000
4,240,000
3,200,000
27,995,000
25,935,000
12,535,000
11,580,000
2,345,000
2,345,000
7,220,000
7,220,000
T 101 Far, SM T
7G 8)7 GA7
81
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
2023
2024
2025
2026
2027
2028-2032
2033-2037
2038-2042
Total
Governmental Activities
Principal
$ 3,435,308
3,368,871
3,636,269
3,616,038
3,791,973
16,668,597
7,015,683
4,564,783
$ 46,097,522
Interest
$ 1,213,783
1,165,192
1,086,971
999,548
911,442
3,145,834
1,509,640
572,858
$ 10,605,268
Business -type Activities
Principal
Interest
$ 3,119,664
$ 765,642
3,061,127
681,944
3,018,770
600,014
2,908,939
519,489
2,983,045
442,200
11,433,980
1,109,196
2,979,317
145,398
225,198
11,130
$ 29,730,040 $ 4,275,013
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, 2022, 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 $ 17,760,000 $ 680,000
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year
June 30
2023
2024
2025
2026
2027
2028-2033
2034-2037
Total
Governmental Activities
Principal
$ 680,000
730,000
785,000
845,000
910,000
5,675,000
8,135,000
$ 17,760,000
Interest
$ 1,332,000
1,281,000
1,226,250
1,167,375
1,104,000
4,409,375
1,918,500
$ 12,438,500
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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. During fiscal year 2022,
the City issued $3,505,000 Water Revenue Refunding Bonds, Series 2021C for the purpose of refunding
the Water Revenue Bonds Series 2008D and 201OD, the refunded bonds. The refunded bonds were called
on August 23, 2021 at a call price of 100%. The refunding was undertaken to reduce total debt service
payments. The results of the transaction is a reduction of $578,395 in future debt service payments for an
economic gain of $487,437. Revenue bonds outstanding at June 30, 2022, are as follows:
Amount
Amount
Date of
Interest
Originally
Outstanding
Purpose
Issue
Maturity Dates
Rates
Issued
End of Year
Sales Tax Incremental 2014
06/14/2014
06/01/23-06/01/29
4.00-5.00
$ 7,190,000
$ 7,190,000
Sales Tax Incremental 2015A
06/15/2015
06/01/23-06/01/31
3.25-4.00
20,800,000
20,800,000
Water Revenue Refunding
Series 2021C
07/19/2021
06/01/22-06/01/30
2.00
3,505,000
3,165,000
$ 31,495,000
$ 31,155,000
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) provide
for 100% of the budgeted Operation and Maintenance Expenses and for the accumulation in the Revenue
Fund of a reasonable reserve; and b) produce net revenues in each fiscal year which (1) equal at least
125% of the debt service requirement of all bonds and parity obligations then outstanding for the year of
computation; (2) 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 $373,699 and $4,754,509, respectively.
During the year ended June 30, 2022, 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 $36,884,663.
83
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
2023
$ 2,480,000
$ 987,500
2024
3,515,000
1,075,600
2025
3,655,000
943,169
2026
3,740,000
806,381
2027
3,895,000
670,019
2028-2031
13,870,000
1,246,994
Total
$ 31,155,000
$ 5,729,663
Note Payable. A note payable in the amount of $690,529 has been issued in a prior year to provide funds
for economic development and for the purchase of capital assets. Principal and interest in the amounts of
$46,195 and $1,510, respectively, were paid in Fiscal Year 2022. The amount outstanding at June 30,
2022 is $0.
84
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 $345,742 of SRF debt in 2022 as part of the Catfish and Granger Creek sanitary
sewer construction project, $49,037 for sanitary sewer master plan, $32,548 for Auburn and Custer
project, $7,277 for the Granger Creek/Twin Ridge project, $78,390 for the Catfish Creek watershed
stabilization project, $2,652,167 for the Upper Bee Branch Culverts, $1,030,000 for a CIWA purchase,
and $100,257 for the Water Webber Extension. The City has pledged income derived from the acquired
or constructed assets to pay debt service. Capital loan notes payable at June 30, 2022, 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 PI/Hawthorne
03/19/21
03/19/24
0.00
Sanitary Sewer Master Plan
03/19/21
03/19/24
0.00
Granger Creek / Twin Ridge
01/07/22
01/07/25
0.00
Water Webber Extension
01/07/22
01/07/25
0.00
% $ 1,037,000
$ 337,000
$ 52,000
1,847,000
677,000
104,000
800,000
382,000
43,000
912,000
436,000
49,000
7,676,000
1,679,000
164,000
74,285,000
52,835,000
2,640,000
7,850,000
5,795,000
225,000
3,048,000
1,825,000
150,000
3,05 8,000
1,679,000
164,000
1,029,000
201,000
16,000
22,138,000
19,328,652
1,193,000
10,198,000
7,075,761
501,000
4,400,000
4,029,000
188,000
2,992,000
2,160,538
123,000
16,382,000
14,118,739
701,000
350,000
349,709
-
160,000
32,548
-
970,000
59,551
-
465,000
7,278
-
1,570,000
100,257
-
$ 161,167,000
$ 113,108,033
$ 6,313,000
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. 85
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.
0
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 with 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 $2.992 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.
87
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.
On January 7, 2022 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $400,000. This line of credit was issued to
finance the planning and design of the Sanitary Sewer 42-Ince Force Main Stabilization project by the
Sanitary Sewer Fund. The interest rate for this line of credit is 0%. The line of credit matures in Fiscal
Year 2025. 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 January 7, 2022 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $465,000. This line of credit was issued to
finance the planning and design of the Sanitary Sewer Granger Creek Interceptor Sewer Improvements
project by the Sanitary Sewer Fund. The interest rate for this line of credit is 0%. The line of credit
matures in Fiscal Year 2025. 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 January 7, 2022 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 $1.57 million. This line of
credit was issued to finance the planning and design of the Webber Property Water Distribution System
Improvements project by the Water Fund. The interest rate for this line of credit is 0%. The line of credit
matures in Fiscal Year 2025. The note payable is payable solely from the Water Fund. The debt is owned
by the Iowa Finance Authority and; therefore, constitutes direct borrowing.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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
2023
$ 6,313,000
$ 2,202,656
2024
6,443,000
2,080,618
2025
6,595,531
1,966,992
2026
6,733,206
1,839,326
2027
6,870,670
1,708,935
2028-2032
35,074,645
6,515,220
2033-2037
33,364,137
3,144,198
2038-2042
11,649,478
435,691
2043-2044
64,366
1,937
Total
$ 113,108,033
$ 19,895,573
At June 30, 2022, the City of Dubuque had $2,965,657 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 years 2023 and 2024. 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,
2022, 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
$ 54,580
$ 35,937
Iowa Finance Authority
08/26/11
06/01/20-06/01/30
3.0
4,500,000
2,973,387
213,230
Bowling & Beyond Inc.
10/15/12
12/04/12-12/04/32
-
1,000,000
500,000
50,000
Central Iowa Water
12/01/16
12/01/17-12/01/21
3.0
5,000,000
-
-
$ 10,900,000
$ 3,527,967
$ 299,167
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.
99
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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. Principal and interest in the amounts of $1,000,000
and $30,000, respectively, were paid in Fiscal Year 2022. The amount outstanding at June 30, 2022 is $0.
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year
June 30
2023
2024
2025
2026
2027
2028-2032
Total
Governmental Activities
Principal
$ 263,230
269,674
276,314
283,154
290,202
2,090,813
$ 3,473,387
Interest
$ 87,614
81,170
74,530
67,690
60,642
137,482
$ 509,128
Business -type Activities
Principal Interest
$ 35,937 $ 2,286
18,643 466
$ 54,580 $ 2,752
Leases Payable. The City has entered into lease agreements for office space and equipment as a lessee. The
following is a recap of leases as of June 30, 2022 in which the City is a lessee:
Amount
Date of
Maturity
Discount
Initial
Outstanding
Current
Purpose
Issue
Dates
Rate
Liability
End of Year
Portion
Governmental
Activities
Building Leases
7/l/2021
6/30/2031
1.57%
$ 208,093
$ 186,155
$ 22,013
Equipment Leases
2/24/2022
10/31/2023
3.80%
56,386
22,382
22,382
$ 264,479
$ 208,537
$ 44,395
Business -Type
Activities
Building Leases 7/l/2021 7/31/2032 3.03% $ 267,361 $ 246,133 $ 21,198
Equipment Leases 7/l/2021 6/30/2023 1.74% 10,990 5,670 5,670
$ 278,351 $ 251,803 $ 26,868
a
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 7 - LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for leases payable are as follow:
Fiscal Year
Governmental Activities
Business -Type Activities
June 30
Principal
Interest
Principal
Interest
2023
$ 44,395
$ 2,943
$ 26,868
$ 7,218
2024
22,355
2,423
21,830
6,532
2025
22,714
2,064
22,519
5,843
2026
23,074
1,704
23,211
5,151
2027
23,439
1,339
23,924
4,438
2028-2032
72,560
1,774
131,094
10,718
2033-2037
-
-
2,357
7
$ 208,537
$ 12,247
$ 251,803
$ 39,907
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2022, was as
follows:
Balance
Beginning of
Year Balance End Due Within
(as restated) Additions Reductions of Year One Year
Governmental activities:
General obligation bonds
$
40,050,792
$ 9,565,000
$ (3,518,270)
$
46,097,522
$
3,435,308
Unaccreted premium
1,730,758
123,888
(626,013)
1,228,633
-
Unamortized discounts
(36,185)
-
36,185
-
-
Total general obligation bonds
41,745,365
9,688,888
(4,108,098)
47,326,155
3,435,308
Tax increment financing bonds
18,395,000
-
(635,000)
17,760,000
680,000
Unamortized discounts
(150,822)
-
45,260
(105,562)
-
Total tax increment financing bonds
18,244,178
-
(589,740)
17,654,438
680,000
Notes payable
46,195
-
(46,195)
-
-
Loans payable
3,748,361
-
(274,974)
3,473,387
263,230
Lease payable
264,478
(55,941)
208,537
44,395
Compensated absences
6,546,590
4,088,814
(3,620,828)
7,014,576
656,212
Total governmental activities
$
70,595,167
$ 13,777,702
$ (8,695,776)
$
75,677,093
$
5,034,750
Business -type activities:
General obligation bonds
$
32,787,266
$ -
$ (3,057,226)
$
29,730,040
$
3,119,664
Unaccreted premium
1,340,483
-
(480,794)
859,689
-
Unamortized discounts
(23,574)
-
10,841
(12,733)
-
Total general obligation bonds
34,104,175
-
(3,527,179)
30,576,996
3,119,664
Revenue bonds
31,815,000
3,505,000
(4,165,000)
31,155,000
2,480,000
Unaccreted premium
534,089
181,309
(154,846)
560,552
-
Unamortized discounts
(44,254)
-
6,361
(37,893)
-
Total revenue bonds
32,304,835
3,686,309
(4,313,485)
31,677,659
2,480,000
Notes payable
115,011,616
4,295,417
(6,199,000)
113,108,033
6,313,000
Loans payable
1,088,786
-
(1,034,206)
54,580
35,937
Lease payable
278,351
(26,548)
251,803
26,868
Compensated absences
770,681
469,593
(402,199)
838,075
60,768
Total business -type activities
$
183,558,444
$ 4,765,010
$ (15,476,069)
$
176,507,146
$
12,009,369
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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
$ 4,832,321,670
241,616,084
(101,870,161)
$ 139,745,923
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, 2022 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 $ 3,120,000
5,100,000 3,940,000
$ 9,600,000 $ 7,060,000
Annual debt service requirements to maturity of the general obligation bond is as follows:
Fiscal Year June 30
2023
2024
2025
2026
2027
2028-2032
2033-2037
Total
Principal
$ 450,000
465,000
475,000
490,000
505,000
2,770,000
1,905,000
$ 7,060,000
Interest
$ 210,459
198,609
186,065
172,965
158,865
563,548
186,070
$ 1,676,581
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long -Term Liabilities. Long term liability activity for the year ended June 30, 2022 is as
follows:
Balance
Beginning
of Year Additions
General obligation bond $ 7,495,000 $
Unaccreted premium 191,815 _
Total general obligation bond $ 7,686,815 $
Balance Due Within
Reductions End of Year One Year
$ (435,000) $ 7,060,000 $ 450,000
- (12,857) 178,958 -
$ (447,857) $ 7,238,958 $ 450,000
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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. Coverage from a private insurance
company is maintained for losses in excess of the stop -loss amount. As of May 15, 2020 the City changed
workers' compensation coverage providers. Under this new agreement, the City is fully insured for all
claims with the exception of sworn Police Officers and Fire Fighters medical claims. All claims handling
procedures are performed by a third -party claims administrator. Incurred but not reported claims have
been accrued as a liability based upon the claims administrator's estimate. Settled claims have not
exceeded commercial coverage in any of the past three fiscal years. The estimated liability does not
include any allocated or unallocated claims adjustment expense. The City purchases private insurance to
include sworn Police Officers and Fire Fighters medical claims under a self- insured retention of
$750,000 for each accident.
All funds of the City participate in both programs and make payments to the Health Insurance Reserve
Fund and the Workers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior and current year claims. The claims liability of $873,202 in the Health Insurance Reserve
Fund and $1,321,184 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, 2022 and 2021, are summarized as follows:
Health
Workers'
Insurance
Compensation
Reserve Fund
Reserve Fund
Liabilities at June 30, 2020
$ 873,589
$ 499,557
Claims and changes in estimates during fiscal year 2021
9,965,588
1,559,917
Claim payments
(9,744,760)
(979,695)
Liabilities at June 30, 2021
1,094,417
1,079,779
Claims and changes in estimates during fiscal year 2022
7,797,669
1,114,182
Claim payments
(8,018,884)
(872,777)
Liabilities at June 30, 2022
$ 873,202
$ 1,321,184
94
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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, 2022, were $1,189,619.
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, 2022, settled claims have not
exceeded the risk pool or reinsurance company coverage since the Pool's inception.
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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, 2022.
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, 2022. The City has additional commitments for signed
construction contracts of $3,478,235 as of June 30, 2022. 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, 2022. DMASWA has an
additional commitments for a signed construction contracts of $28,284 as of June 30, 2022. These
commitments will be partially funded by bond proceeds.
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 615 active and 40 retired members in the plan, as of most recent
actuarial valuation report.
Funding Policy - The contribution requirements of plan members are established and may be amended by
the City. The City currently finances the retiree benefit plan on a pay-as-you-go basis.
Total OPEB Liability - The City's OPEB liability of $5,827,804 was measured as of June 30, 2022, and
was determined by an actuarial valuation as of June 30, 2022. The City's proportion is based on the
number of employees in the plan. The City's proportion was 98.60% as of June 30, 2022.
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
$ 6,311,802
306,094
134,580
42,042
281,561
(887,322)
(360,953)
(483,998)
$ 5,827,804
97
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Methods and Assumptions - The total OPEB liability in the June 30, 2022 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, 2022
Rates of salary increase
effective June 30, 2022
Discount rate
effective June 30, 2022
Healthcare cost trend rate
effective June 30, 2022
3.00% per annum
4.00% per annum,
including inflation
4.09 % compounded annually,
including inflation
6.00% initial rate decreasing to an
ultimate rate of 4.50% (ultimate rate
reached in Fiscal Year 2037)
Discount Rate - The discount rate used to measure the total OPEB liability was 4.09% 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. The rate used is the S&P Municipal Bond 20-Year High -Grade Index
as of June 30, 2022.
Mortality rates are from the PubG.H-2010 Mortality Table with Mortality Improvement using Scale
MP-2020. 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 $12,791-$18,208 per year for retirees depending on the age
of retiree. The actuarial assumptions used in the June 30, 2022 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 (3.09%) or 1% higher (5.09%) than the current discount
rate.
1% Decrease (3.09%) Discount Rate (4.09%) 1% Increase (5.09%)
Total OPEB Liability $ 5,423,805
5,827,804 $ 6,268,178
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 (5.00%) or 1 % higher
(7.00%) than the current healthcare cost trend rates.
1% Decrease (5.00%) Healthcare Cost Trend 1% Increase (7.00%)
Rate (6.00%)
Total OPEB Liability $ 6,454,838 $ 5,827,804 $ 5,294,144
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30,
2022 the City recognized OPEB expense of $396,244. At June 30, 2022 the City reported deferred
outflows of resources related to OPEB from the following sources:
Deferred Outflows of Resources Deferred Inflows of Resources
Changes in Experience $ 249,455 $ 171,592
Changes in Assumptions 483,087 967,164
Change in Proportion 82,493 46,154
$ 815,035 $ 1,184,910
The net amount reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized as OPEB expense in future periods as follows:
Year Ending June 30
2023
2024
2025
2026
2027
Thereafter
Net Deferred Outflows
(Inflows) of Resources
$ (39,754)
(39,754)
(39,754)
(39,754)
(39,754)
(171,105)
$ (369,875)
Dubuque Metropolitan Area Solid Waste Agency Specific (DMASWA) OPEB Disclosures
Total OPEB Liability- DMASWA OPEB liability of $82,958 was measured as of June 30, 2022, and was
determined by an actuarial valuation as of June 30, 2022. The Agency's portion is based on the number
of employees in the plan. The Agency's portion was 1.40% as of June 30, 2022.
Total OPEB
Liability
Total OPEB Liability beginning of year
$ 132,488
Changes for the year:
Service Cost
4,357
Interest
1,916
Changes in experience
4,008
Other Changes
(42,042)
Changes in assumptions
(12,631)
Benefit payments
(5,138)
Net Changes
(49,530)
Total OPEB Liability end of year
$ 82,958
99
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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 (3.09%) or 1 % higher (5.09%) than the
current discount rate.
Total OPEB Liability
1% Decrease (3.09%) Discount Rate (4.09%) 1% Increase (5.09%)
77,207 $
82,958 $
89,227
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 (5.00%)
or 1% higher (7.00%) than the current healthcare cost trend rates.
1% Decrease (5.00%) Healthcare Cost Trend 1% Increase (7.00%)
Rate (6.00%)
Total OPEB Liability $ 91,884 $ 82,958 $ 75,361
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30,
2022 the DMASWA recognized OPEB expense of $5,640. At June 30, 2022 the DMASWA reported
deferred outflows of resources and deferred inflows of resources related to OPEB from the following
sources:
Deferred Outflows of Resources
Changes in Experience $ 3,551
Changes in Assumptions 6,876
Change in Proportion -
$ 10,427
Deferred Inflows of Resources
$ 2,443
13,766
36,339
$ 52,548
The net amount reported as deferred outflows of resources and deferred inflows of resources related to
OPEB will be recognized as OPEB expense in future periods as follows:
Year Ending June 30
2023
2024
2025
2026
2027
Thereafter
Net Deferred Outflows
(Inflows) of Resources
$ (5,310)
(5,310)
(5,310)
(5,310)
(5,310)
(15,571)
$ (42,121)
100
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 reduction in pension expense for the period
associated with the net pension liability for all plans is $1,258,377 for the primary government. Other
aggregate amounts related to pension are separately displayed in the financial statements. See table below
for breakdown between IPERS and MFPRSI:
IPERS MFPRSI Total
Net Pension Liability
$ 441,239 $
9,964,114
$ 10,405,353
Deferred Inflows
18,741,129
16,600,331
35,341,460
Deferred Outflows
5,596,634
3,300,851
8,897,485
Pension Expense (Decrease)
(1,534,099)
275,722
(1,258,377)
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.orgy.
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.
101
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 11— EMPLOYEE PENSION PLANS (continued)
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.
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 2022, 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, 2022 were $2,534,695. The Dubuque
Metropolitan Area Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2022
were $64,159.
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, 2022, the City reported a liability of $441,239 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2021, 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, 2021, the City's collective proportion was 0.314740% which was a decrease of-0.015874%
from its proportion measured as of June 30, 2020. The City allocations to governmental and
business -type activities according to the proportionate share of conributions in the prior year.
102
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 11—EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2022, the City recognized a reduction of pension expense of $1,534,099. At
June 30, 2022, 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
Deferred Outflows Deferred Inflows
of Resources of Resources
335,721
288,607
141,828
2,534,695
$ 337,083
15,986,764
276,484
Total $ 3,300,851 $ 16,600,331
The $2,534,695 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, 2023. 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
Net Deferred
Ended
Outflows (Inflows)
June 30
of Resources
2023
$ (3,914,085)
2024
(3,936,312)
2025
(3,634,230)
2026
(4,366,714)
2027
17,166
$ (15,834,175)
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.
103
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 (asset): $ 15,616,856 $ 441,239 $ (12,276,895)
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, 2022, the DMASWA reported a liability of $10,341 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2021, 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, 2021, the DMASWA's collective proportion was 0.007376% which
was an increase of 0.001034% from its proportion measured as of June 30, 2020.
For the year ended June 30, 2022, the DMASWA recognized pension expense of $35,954. At June 30,
2022, 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 $ 7,867 $ 7,902
Changes of assumptions 6,764
Net difference between projected and actual - 374,677
earnings on IPERS' investments
Net changes in proportion and differences between
Agency's contributions and Agency's proportionate
share
of contributions - 37,421
Agency contributions subsequent to the
measurement date 64,159 -
Total
78,790 $ 420,000
104
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 11—EMPLOYEE PENSION PLANS (continued)
$64,159 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, 2023. 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
2023
$ (100,203)
2024
(100,772)
2025
(93,039)
2026
(111,791)
2027
436
$ (405,369)
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%
Decrease
(6.00)%
Agency's proportionate share of
the net pension liability (asset): $ 366,002
There were no non -employer contributing entities at IPERS.
Discount
1%
Rate
Increase
(7.00)%
(8.00)%
$ 10,341 $ (287,725)
Actuarial Assumptions - The total pension liability in the June 30, 2021, actuarial valuation was
determined using the following actuarial assumptions, applied to all periods included in the
measurement:
Rate of inflation
Rates of salary increase
Long-term Investment rate of return
Wage Growth
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
105
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 11—EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2021 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 were based on the RP-2014 Generational Mortality Tables with adjustments based on
different membership groups. Future mortality improvements used Projection Scale MP-2017.
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
22.0 %
4.43%
International equity
17.5
6.01
Global smart beta equity
6.0
5.10
Core plus fixed income
26.0
0.29
Public credit
4.0
2.08
Cash
1.0
(0.25)
Private equity
13.0
9.51
Private real assets
7.5
4.63
Private credit
3.0
2.87
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, 2022, the City reported payables to the defined benefit pension plan of
$142,166 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.
106
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2022
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.
107
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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,
2022.
Employer contribution rates are based upon an actuarially determined normal contribution rate and set by
state statute. The required actuarially determined contributions are calculated on the basis of the entry
age normal method as adopted by the Board of Trustees as permitted under Chapter 411 of the Code of
Iowa. The normal contribution rate is provided by state statute to be the actuarial liabilities of the plan
less current plan assets, with such total divided by 1 % of the actuarially determined present value of
prospective future compensation of all members, further reduced by member contributions and state
appropriations. Under the Code of Iowa the employer's contribution rate cannot be less than 17.00% of
earnable compensation. The contribution rate was 26.18% for the year ended June 30, 2022.
The City's contributions to MFPRSI for the year ended June 30, 2022 was $3,823,085.
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, 2022.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2022, the City reported a liability of $9,964,114 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30,
2021, and the total pension liability used to calculate the new pension liability was determined by an
actuarial valuation as of that date. The City's proportion of the net pension liability was based on the
City's share of contributions to the pension plan relative to the contributions of all MFPRSI participating
employers. At June 30, 2021, the City's proportion was .044369% which was a decrease of 0.002944%
from it proportions measured as of June 30, 2020. This is funded by governemental activities only.
108
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 11—EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2022, the City recognized pension expense of $275,722. At June 30, 2022,
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
$ 1,155,818 $ 112,133
375,272 -
- 16,648,816
242,459 1,980,180
3,823,085 -
$ 5,596,634 $ 18,741,129
$3,823,085 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, 2023. 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
2023
2024
2025
2026
2027
Net Deferred
Outflows (Inflows)
of Resources
$ (3,517,689)
(3,704,384)
(4,210,213)
(5,465,396)
(69,898)
$ (16,967,580)
109
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 11—EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions - The total pension liability in the June 30, 2021 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, 2021 valuation were based on the results of an actuarial
experience study for the 10-year period ending June 30, 2020.
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
110
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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 % Discount 1 %
Decrease Rate Increase
(6.50)% (7.50)% (8.50)%
City's proportionate share of
the net pension liability (asset): $ 29,485,903 $ 9,964,114 $ (6,237,842)
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, 2022, City of Dubuque, Iowa reported payables to the defined benefit
pension plan of $193,112 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.
ill
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
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:
2022
Closure $ 4,273,142
Post -closure care 2,492,768
Totals $ 6,765,910
The total closure and post -closure care costs for the DMASWA has been estimated at approximately
$6,765,910 as of June 30, 2022, and the portion of the liability, that has been recognized is $3,153,143.
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 36% of cell 9. The Agency has accumulated resources to fund
closure and post -closure costs; they are included in assets whose use is limited on the balance sheet and total
$5,229,444 as of June 30, 2022. The Agency will recognize the remaining estimated cost of closure and post
closure care of $3,612,767 over the estimated remaining life of 16 years as the remaining capacity is filled.
112
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 13 - LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, farm land, parking areas, and space for antennas on top of
water towers. The following are the leases in effect at June 30, 2022 in which the City is a lessor:
Governmental Activities:
Lease Term
Discount
Original
Balance as of
Due Within
Rent
Interest
Lease Type
Beginning
Ending
Rate
Balance
June 30, 2022
One Year
Revenue
Revenue
Land
7/1/2021
7/l/2055
1.58 %- 3.57%
$ 23,120,733
$ 21,919,373
$ 1,100,825
$ 1,339,149
$ 674,706
Building
7/1/2021
6/30/2056
1.72% - 3.57%
10,171,479
9,805,681
351,771
393,067
320,290
Other
7/1/2021
11/30/2038
3.40
194,951
180,772
8,032
20,308
-
$ 33,487,163
$ 31,905,826
$ 1,460,628
$ 1,752,524
$ 994,996
In the governmental activities the lease term for the various leases began on July 1, 2021, with the exception
of one land lease in the amount of $93,505 that was entered into in January 2022. The lease term for the lease
arrangements end at various dates through June 30, 2056.
The most significant lease is the lease of the greyhound racing and gambling facility and related parking
parking areas to the Dubuque Racing Association (DRA). The DRA lease amount is based on the
association's gross gambling receipts. Total rent related to this variable lease was $6,607,531.
Business -Type Activities:
Lease Term
Discount
Original
Balance as of
Due Within
Rent
Interest
Lease Type Beginning Ending
Rate
Balance
June 30, 2022
One Year
Revenue
Revenue
1.85% -
Land 7/1/2021 2/28/2038
3.39%
$ 889,248
$ 791,401
$ 86,448 $
97,847
$ 10,547
Building 7/1/2021 6/30/2023
1.74%
131,606
67,266
67,266
64,340
1,590
$ 1,020,854
$ 858,667
$ 153,714 $
162,187
$ 12,137
In the business -type activities, the lease term for the various leases began on July 1, 2021, with the exception
of one land lease in the amount of $131,587 that was entered into in November 2021. The lease term for the
lease arrangements end at various dates through February 28, 2038.
The City recognized revenue of $843,810 for payments from regulated leases not previously included in the
above schedules. The following is a schedule of the future minimum payments under regulated leases:
Year EndinLy Total to be Daid
6/30/2023 $
668,545
6/30/2024
493,995
6/30/2025
334,785
6/30/2026
164,549
6/30/2027
113,407
Thereafter
2,578,469
4,353,750
Dubuque Metropolitan Area Solid Waste Agency (Component Unit):
The Agency is a lessor in one land lease that matures in April 2024. The initial lease arrangement was for
$129,470 in which $84,439 is outstanding as of June 30, 2022. The current portion is $45,692. Rent and
interest revenue on the lease for the year ending June 30, 2022 was $45,031 and $1,876, respectively. The
discount rate is 1.91%.
113
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 14 — SUBSEQUENT EVENTS
On March 3, 2023, Taxable Sewer Revenue Capital Loan Notes (Water Quality Financing Program), Series
2023A were issued for $1,950,000 with an average interest rate of 1.00 per annum maturing on June 1, 2043.
The loan funds wil be used to pay the costs of acquisition, construction, reconstruction, extending,
remodeling, improving, repairing and equipping all or part of the Municipal Sewer System, including those
costs associated with force main stabilization improvements.
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:
GASB 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.
GASB 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).
GASB 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).
GASB Statement No. 99, Omnibus 2022 will enhance comparability in the application of accounting and
financial reporting requirements and will improve the consistency of authoritative literature. Consistent
authoritative literature enables governments and other stakeholders to more easily locate and apply the
correct accounting and financial reporting provisions, which improves the consistency with which such
provisions are applied. The comparability of financial statements also will improve as a result of this
Statement. Better consistency and comparability improve the usefulness of information for users of state and
local government financial statements. The statement will be effective for the City at various times between
upon issuance and with its year ending June 30, 2025.
114
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 16 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
GASB Statement No. 100, Accounting Changes and Error Corrections will improve the clarity of the
accounting and financial reporting requirements for accounting changes and error corrections, which will
result in greater consistency in application in practice. In turn, more understandable, reliable, relevant,
consistent, and comparable information will be provided to financial statement users for making decisions or
assessing accountability. In addition, the display and note disclosure requirements will result in more
consistent, decision useful, understandable, and comprehensive information for users about accounting
changes and error corrections. The statement will be effective for the City with its year ending June 30,
2025.
GASB Statement No. 101, Compensated Absences will through its unified recognition and remeasurement
model, result in a liability for compensated absences that more appropriately reflects when a government
incurs an obligation. In addition, the model can be applied consistently to any type of compensated absence
and will eliminate potential comparability issues between governments that offer different types of leave. The
model also will result in a more robust estimate of the amount of compensated absences that a government
will pay or settle, which will enhance the relevance and reliability of information about the liability for
compensated absences. The statement will be effective for the City with its year ending June 30, 2025.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
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, 2022, the City abated $11,832,504 of property tax under the urban renewal and
economic development projects.
115
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 18 — RESTATEMENT
Adoption of New Accounting Standard
As of July 1, 2021 the City adopted GASB Statement No. 87, Leases. The objective of this Statement is to
better meet the information of financial statement users by improving accounting and financial reporting for
leases by governments. The City restated the following balances as of July 1, 2021:
Deferred Inflows
Lease assets Lease Pavable Lease Receivable of Resources
Governmental Activities $ 264,479 $ 264,479 $ 33,451,430 $ 33,451,430
General Fund
Business -Type Activities
Sewage Disposal Works
Parking Facilities
Water Utility
$ - $ - $ 33,451,430 $ 33,451,430
267,361 $ 267,361
10,990 10,990
- - 889,267 889,267
$ 278,351 $ 278,351 $ 889,267 $ 889,267
The effect of implementing this Statement did not result in a restatement of beginning net position/fund
balance as the city did not have capital leases under previous guidance.
Change in Fund Type
GASB Statement No. 84, Fiduciary Activities, changed the definition, criteria and reporting of fiduciary
activities as well as redefined various fiduciary fund types and changed fund type terminology. The activity
of the Cable Equipment Fund, previously reported as a custodial fund, does not meet the definition of a
fiduciary activity under GASB 84 as the funds can be used for city purposes under Iowa Code Section
477A7.4. The Cable Equipment Fund should have been moved into General Fund during the previous year as
of the standard effective date for years ended June 30, 2021. The change resulted in a restatement of
beginning net position/fund balance as follows:
Governmental
General Fund
Activities
Fiduciary Funds
Net position/fund balance - July 1, 2021, as $
34,985,106
$ 391,523,754
$ 2,304,920
previously reported
Adjustment to correct misstatement
1,126,802
1,126,802
(1,126,802)
Net position/fund balance - July 1, 2021, as restated
36,111,908
392,650,556
1,178,118
116
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2022
NOTE 18 — RESTATEMENT (continuted)
Workers' Compensation Reserve
Police and Fire injury claims were incorrectly charged to the Workers' Compensation Reserve Fund instead
of the General Fund as required by Iowa State Code. The change resulted in a restatement of beginning net
position and fund balance on July 1, 2021 to adjust the claims that should have been recorded in the General
Fund. Changes to beginning net position or fund balance are as follows:
Net position/fund balance - July 1, 2021, as
previously reported
Adjustment to correct misstatement
Net position/f ind balance - July 1, 2021, as
restated
Internal Service
General Fund Funds
$ 34,985,106 $ 3,115,161
(973,070) 973,070
34,012,036 4,088,231
This change also resulted in a restatement of beginning cash and cash equivalents reported in the cash flow
statement for the internal service fund. Beginning cash flows was adjusted by $973,070.
Cash Flow Statements
In prior years, the City's cash flow statements included cash and investments with certain investments not
meeting its accounting policy definition of cash and cash equivalents as provided for by GASB Statement
No. 9, Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds and Governemental Entitites
That Use Proprietary Fund Accounting. Cash and cash equivalents are defined to include investments which
have an original maturity of three months or less. During 2022, the City corrected beginning cash and cash
equivalents at July 1, 2021 to exclude investments not meeting its cash equivalents definition. This change
resulted in a restatement of beginning cash and cash equivalents reported in the cash flow statement of each
respective fund as follows:
Stormwater
Water Utility Utility Total
Cash and investments -
July 1, 2021, as
previously reported $ 12,324,952 $ 16,585,515 $ 28,910,467
Adjustment to correct
misstatement (525,200) (2,080,000) (2,605,200)
Cash and cash
equivalents - July 1,
2021, as restated 11,799,752 14,505,515 26,305,267
117
THIS PAGE IS INTENTIONALLY LEFT BLANK
118
Required Supplementary Information
June 30, 2022
City of Dubuque, Iowa
119
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120
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, 2022
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
$ 26,320,408
11,832,504
22,549,055
2,163,762
18,986,654
52,661,363
46,559,220
94,871
10,020,010
191,187,847
30,844,979
14,212,887
855,079
13,423,062
15,539,505
10,675,959
8,720,233
28,044,260
53,515,597
175,831,561
15,356,286
Budgeted Amounts Final to Actual
Original Final Variance
$ 25,530,416
11,666,215
20,772,861
1,955,835
16,031,663
34,070,391
46,147,596
187,000
8,916,548
165,278,525
31,484,833
14,455,614
1,073,072
13,886,463
16,259,431
10,723,620
9,785,741
33,838,359
59,728,061
191,23 5,194
(25,956,669)
$ 25,530,416
11,666,215
20,772,861
2,093,373
16,046,842
77,758,769
46,846,043
188,000
10,378,510
211,281,029
32,693,546
16,454,801
1,043,534
16,666,892
18,502,285
11,901,235
9,804,328
112,351,600
84,893,388
304,311,609
(93,030,580)
$ 789,992
166,289
1,776,194
70,389
2,939,812
(25,097,406)
(286,823)
(93,129)
(358,500)
(20,093,182)
1,848,567
2,241,914
188,455
3,243,830
2,962,780
1,225,276
1,084,095
84,307,340
31,377,791
128,480,048
108,386,866
18,266,215 12,331,457 41,889,281 (23,623,066)
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES 33,622,501 (13,625,212) (51,141,299) 84,763,800
BALANCE, BEGINNING OF YEAR 122,551,667 75,132,117 137,843,052 (15,291,385)
BALANCE, ENDING OF YEAR $ 156,174,168 $ 61,506,905 $ 86,701,753 $ 69,472,415
See Notes to Required Supplementary Information.
121
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2022
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, 2022, was amended two times during the year to allow the
City to increase function expenditures by $113,076,415 primarily for the carry -forward of unfinished
capital improvement projects. During the year ended June 30, 2022, 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
$ 191,187,847
$ (21,815,179)
$ 169,372,668
$ 122,663,549
$ 46,709,119
$ 169,372,668
Expenditures/Expenses
175,831,561
(24,841,291)
150,990,270
113,741,645
37,248,625
150,990,270
Deficiency of Receipts/Revenue
Under Expenditures/Expenses
15,356,286
3,026,112
18,382,398
8,921,904
9,460,494
18,382,398
Other Financing Sources
18,266,215
(4,720,801)
13,545,414
6,092,041
7,453,373
13,545,414
Net
33,622,501
(1,694,689)
31,927,812
15,013,945
16,913,867
31,927,812
Balance, Beginning
122,551,667
198,267,906
320,819,573
83,225,676
237,593,897
320,819,573
Balance, Ending
$ 156,174,168
$ 196,573,217
$ 352,747,385
$ 98,239,621
$ 254,507,764
$ 352,747,385
122
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEM
LAST EIGHT FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2022 2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability (asset) 0.31474% 0.33061% 0.33194% 0.33329% 0.33490% 0.34275% 0.35135% 0.37035%
City's proportionate share of the net pension
$ 441 $
23,063 $
19,350 $
21,091 $
22,309 $
21,570 $
17,358 $
14,688
liability
City's covered payroll
$ 25,496 $
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
1.73%
88.54%
76.11%
84.28%
89.38%
87.69%
72.21%
60.67%
Plan fiduciary net position as a percentage of the
100.81%
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.
123
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
Statutorily required contribution
Contributions in relation to the
statutorily required contribution
Contribution deficiency (excess)
City's covered payroll
Contributions as a percentage of
covered payroll
$ 2,535 $ 2,407 $ 2,460 $ 2,403 $ 2,235 2,229 2,196 2,151 2,164 2,022
(2,535) (2,407) (2,460) (2,403) (2,235) (2,229) (2,196) (2,151) (2,164) (2,022)
$ 26,888 $ 25,496 $ 26,048 $ 25,423 $ 25,024 $ 24,961 $ 24,597 $ 24,039 $ 24,210 $ 23,321
9.43% 9.44% 9.44% 9.45% 8.93% 8.93% 8.93% 8.95% 8.94% 8.67%
124
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30, 2022
Changes of benefit terms:
There are no significant changes in benefit terms.
Changes of assumption:
The 2021, 2020, and 2019 valuations did not include any changes of assumptions.
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.
125
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
LAST EIGHT FISCAL YEARS*
(IN THOUSANDS)
Required Supplementary Information
2022 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
0.4437% 4.7313% 4.6919% 4.8639% 4.7840% 4.9533% 4.9854% 5.0788%
$ 9,964 $ 37,737 $ 30,775 $ 28,960 $ 28,062 $ 30,971 $ 23,423 $ 18,410
$ 14,418 $ 14,879 $ 14,203 $ 14,118 $ 13,552 $ 13,423 $ 13,052 $ 12,968
69.11% 253.63% 216.68% 205.13% 207.07% 230.73% 179.46% 141.96%
93.62% 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.
126
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
$ 3,823
$ 3,649
$ 3,632
$ 3,696
$ 3,626
$ 3,513
$ 3,727
$ 3,969
$ 3,906
$ 3,310
Contributions in relation to the
statutorily required contribution
(3,823)
(3,649)
(3,632)
(3,696)
(3,626)
(3,513)
(3,727)
(3,969)
(3,906)
(3,310)
Contribution deficiency (excess)
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
$ -
City's covered payroll
$ 14,603
$ 14,418
$ 14,879
$ 14,203
$ 14,118
$ 13,552
$ 13,423
$ 13,052
$ 12,968
$ 12,672
Contributions as a percentage of
covered payroll
26.18%
25.31%
24.41%
26.02%
25.68%
25.92%
27.77%
30.41%
30.12%
26.12%
127
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30, 2022
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions
The 2021, 2020, and 2019 valuations did not include any 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.
128
CITY OF DUBUQUE, IOWA
SCHEDULE OF CHANGES IN
TOTAL OPEB LIABILITY, RELATED RATIOS AND NOTES
LAST FIVE 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
2022
2021
2020
2019
2018
$ 306,094 $
303,146 $
288,187 $
296,597 $
277,469
134,580
152,598
165,496
172,576
172,219
(887,322)
254,038
(19,982)
85,951
138,371
281,561
13
(242,263)
-
-
42,042
(11,228)
(49,950)
2,582
58,589
(360,953)
(269,461)
(380,158)
(452,573)
(474,856)
(483,998)
429,106
(238,670)
105,133
171,792
6,311,802
5,882,696
6,121,366
6,016,233
5,844,441
$ 5,827,804 $
6,311,802 $
5,882,696 $
6,121,366 $
6,016,233
$ 42,133,307 $ 41,593,187 $ 34,543,167 $ 39,626,000 $ 39,782,000
13.83% 15.18% 17.03% 15.45% 15.12%
Notes to Schedule of Changes in the Total OPEB Liabilitv and Related Ratios
No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75.
Changes in benefit terms:
There were no significant changes in benefit terms.
Change in assumptions:
Changes in assumptions and other inputs reflect the effects of changes in the discount rate, health care
trend rates and other changes. In Fiscal Year 2022, mortality assumption was adjusted to include
mortality improvement scale MP-2020 and the withdrawal assumption was change from Table T-2 from
the Pension Actuary's Handbook to Table T-3.
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.
129
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.
130
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.
131
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
ASSETS
Cash and investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Restricted cash and 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
$ 8,743,918 $ 551,176 $ - $ 29
-
- 26,808
-
- 2,237,236
76,100
- - -
-
- 300,064
-
39 -
631,376
7,548
359,949
-
2,832
27,712
-
421,688 - -
9,814,175
1,008,163 2,264,044 300,093
551,686 -
96,261 35,223
- 4,682
- 6,210
647,947 46,115
2,237,236 -
- 294,374
- - 16,652 -
- - 2,253,888 294,374
359,949 -
2,832 27,712
8,803,447 -
5,719
- 934,336 -
- - 10,156
9,166,228 962,048 10,156 5,719
$ 9,814,175 $ 1,008,163 $ 2,264,044 $ 300,093
132
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
$ 551,331 $ 1,118,912 $ 8,664 $ 154,834 $ 595,233 $ - $ - $ 3,622,356
238 377 3 - - (195) 89 1,978
- - - - 975,274 - 24,240 -
- 67,627 309,548 289,256 190,015
- - - - 315,460 -
21,882 - - - - 46,637
- - - - - 1,266,039 3,082,582 4,239,065
573,451 1,119,289 8,667 154,834 1,638,134 1,575,392 3,711,627 8,100,051
6,600 - - - 131,717 106,694 342,076
19,173 1,843 - - - - -
- - 578,024 159,475 -
25,773 1,843 - - 709,741 266,169 342,076
- - 159,920 -
- - 159,920 -
- - - 315,460 -
21,882 - - - 46,637
1,117,446 - - -
- 8,667 - -
- 154,834 - - - -
- - 705,731 3,129,998 2,078,909
525,796 - - - - -
- - 1,638,134 -
- - - - - 5,632,429
547,678 1,117,446 8,667 154,834 1,638,134 705,731 3,445,458 7,757,975
$ 573,451 $ 1,119,289 $ 8,667 $ 154,834 $ 1,638,134 $ 1,575,392 $ 3,711,627 $ 8,100,051
(Continued)
133
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET EXHIBIT A-1 (CONTINUED)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2022
ASSETS
Cash and investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Inventories
Prepaid items
Restricted cash and 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
$ 10,829,762 $ - $ - $ 26,176,215
26,808
2,237,236
3,986 - 80,086
- - - 300,064
3,653 25 6 6,213
- - - 999,514
1,005,299 - 2,500,669
- - 675,409
344 - 99,407
- 152,977 18,451 9,180,802
11,843,044 153,002 18,457 42,282,423
1,268,712 - 2,407,485
- - 152,500
- - 4,682
- - 737,499
- - 6,210
1,268,712 - 3,308,376
2,237,236
- - 294,374
- - 159,920
3,936 - 20,588
3,936 - 2,712,118
57,412 12,000 69,412
- - - 675,409
344 - 99,407
- 95,590 6,457 102,047
- - - 1,117,446
- - 8,667
- - 154,834
5,999,625 - 20,717,710
- - 525,796
- - 5,719
- - 1,638,134
- - 934,336
- - 10,156
4,570,427 - 10,202,856
10,570,396 153,002 18,457 36,261,929
$ 11,843,044 $ 153,002 $ 18,457 $ 42,282,423
134
THIS PAGE IS INTENTIONALLY LEFT BLANK
135
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
Special Revenue Funds
Road
Use
Section VIII
Employee
Special
Tax
Housing
Benefits
Assessments
REVENUES
Taxes
$ -
$ - $
2,533,381
$ -
Special assessments
-
-
-
40,496
Intergovernmental
7,927,145
7,047,573
-
-
Charges for services
-
-
-
-
Investment earnings
-
1,946
-
16,480
Contributions
-
-
-
-
Miscellaneous
303,997
53,250
-
11,944
Total Revenues
8,231,142
7,102,769
2,533,381
68,920
EXPENDITURES
Governmental activities
Current
Public safety
-
-
-
-
Public works
6,757,785
-
-
2
Culture and recreation
-
-
-
-
Community and economic development
-
6,771,350
-
-
General government
5,437
-
118
-
Debt service
Interest and fiscal charges
-
-
-
-
Capital projects
163,458
-
-
-
Total Expenditures
6,926,680
6,771,350
118
2
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
1,304,462
331,419
2,533,263
68,918
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
Premium on bonds
-
-
-
-
Transfers in
95,752
160,671
-
-
Transfers out
(148,765)
-
(2,548,880)
(92,503)
Insurance recovery
-
-
-
-
Sale of capital assets
180
-
-
-
Total Other Financing Sources (Uses)
(52,833)
160,671
(2,548,880)
(92,503)
NET CHANGE IN FUND BALANCES
1,251,629
492,090
(15,617)
(23,585)
FUND BALANCES, BEGINNING
7,914,599
469,958
25,773
29,304
FUND BALANCES, ENDING
$ 9,166,228 $
962,048
$ 10,156
$ 5,719
136
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
$ - $ - $ - $ - $ - $ - $ -
132,629 570,761 289,256
- 7,576 - - - 121,736 -
1,280 2,598 20 492 - 3,855 24,969
- (10) 319 49,790 - - 822
399,258 95,655 - - - - 310,743
400,538 105,819 339 50,282 132,629 696,352 625,790
74 - - - -
- - - - 306,334 8,094
- 98,993 - 39,207 - - -
- - - - 528 - 1,729,632
554,167 - - - - - -
361 - - - - - 121,792
- - - - - 911,654 8,568,501
554,528 98,993 74 39,207 528 1,217,988 10,428,019
(153,990) 6,826 265 11,075 132,101 (521,636) (9,802,229)
7,236,280
73,510
50,000 78,807 2,313,089
- - - (182,305) -
- - 50,000 (103,498) 9,622,879
(153,990) 6,826 265 11,075 182,101 (625,134) (179,350)
701,668 1,110,620 8,402 143,759 1,456,033 1,330,865 3,624,808
$ 547,678 $ 1,117,446 $ 8,667 $ 154,834 $ 1,638,134 $ 705,731 $ 3,445,458
EXHIBIT A-2
(Continued)
137
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, 2022
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 debt
Premium on bonds
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
Capital Projects Funds Permanent Funds
Ella Lyons
Sales Tax Street Peony Trail
Construction Construction Trust
Total
Library Nonmajor
Gifts Governmental
Trust Funds
$ 2,547,789 $ 3,821,682 $ - $ - $ 8,902,852
- - - - 40,496
- 1,408,256 - - 17,375,620
- 35,438 - - 164,750
22,843 25,837 (14,801) 43 85,562
- - - - 50,921
- 114,927 - 12 1,289,786
2,570,632 5,406,140 (14,801) 55 27,909,987
- - - 74
- 1,005,824 - - 8,078,039
- 798 - 138,998
- - - - 8,501,510
408,553 - - - 968,275
60,112 167 - - 182,432
1,202,710 3,757,442 - - 14,603,765
1,671,375 4,763,433 798 - 32,473,093
899,257 642,707 (15,599) 55 (4,563,106)
2,328,720
- -
- 9,565,000
50,378
- -
- 123,888
46,393
38,526 -
- 2,783,238
(1,078,199)
(359,431) -
- (4,410,083)
-
5,827 -
- 5,827
-
- -
- 180
1,347,292
(315,078) -
- 8,068,050
2,246,549
327,629 (15,599)
55 3,504,944
5,511,426
10,242,767 168,601
18,402 32,756,985
$ 7,757,975
$ 10,570,396 $ 153,002 $
18,457 $ 36,261,929
138
THIS PAGE IS INTENTIONALLY LEFT BLANK
139
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.
140
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
JUNE 30.2022
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Intergovernmental
Prepaid items
Inventories
Total Current Assets
NONCURRENT ASSETS
Restricted cash and investments
Capital assets
Land
Buildings
Improvements to other than buildings
Machinery and equipment
Accumulated depreciation and amortization
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF
RESOURCES
Total Other
Refuse Transit Enterprise
Collection System Salt Funds
$ 1,000,583 $ 3,421,119 $ 67,217 $ 4,488,919
407,830 1,535
- 409,365
- 1,150,212
- 1,150,212
- 14,696
- 14,696
- 20,244
- 20,244
1,408,413 4,607,806
67,217 6,083,436
- 227,285 - 227,285
-
36,000
-
36,000
-
11,703,490
175,458
11,878,948
-
796,092
686,312
1,482,404
2,962,580
8,681,591
36,342
11,680,513
(1,963,210)
(4,576,307)
(232,858)
(6,772,375)
999,370
16,640,866
665,254
18,305,490
999,370
16,868,151
665,254
18,532,775
2,407,783
21,475,957
732,471
24,616,211
Pension related deferred outflows
142,221
273,978
- 416,199
OPEB related deferred outflows
26,069
22,811
- 48,880
Total Deferred Outflows of Resources
168,290
296,789
- 465,079
LIABILITIES
CURRENT LIABILITIES
Accounts payable
58,671
145,578
- 204,249
Accrued payroll
77,170
112,138
- 189,308
General obligation bonds payable
6,000
46,469
- 52,469
Accrued compensated absences
4,997
-
- 4,997
Accrued interest payable
1,632
1,970
- 3,602
Total Current Liabilities
148,470
306,155
- 454,625
NONCURRENT LIABILITIES
General obligation bonds payable
49,396
1,003,260
- 1,052,656
Accrued compensated absences
236,305
59,415
- 295,720
Net pension liability
19,102
27,547
- 46,649
Total OPEB liability
207,393
181,471
- 388,864
Total Noncurrent Liabilities
512,196
1,271,693
- 1,783,889
Total Liabilities
660,666
1,577,848
- 2,238,514
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
OPEB related deferred inflows
Total Deferred Inflows of Resources
NET POSITION
Net investment in capital assets
Unrestricted
Total Net Position
751,871 1,028,720 - 1,780,591
53,292 36,220 - 89,512
805,163 1,064,940 - 1,870,103
943,974
15,697,009
665,254
17,306,237
166,270
3,432,949
67,217
3,666,436
$ 1,110,244 $
19,129,958 $
732,471 $
20,972,673
EXHIBIT B-1
141
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, 2022
Total Other
Refuse
Transit
Enterprise
Collection
System
Salt
Funds
OPERATING REVENUES
Charges for sales and services
$ 4,598,971
$ 344,881
$ 100,763
$ 5,044,615
Other
47,597
37,792
-
85,389
Total Operating Revenues
4,646,568
382,673
100,763
5,130,004
OPERATING EXPENSES
Employee expense
2,735,219
1,988,630
-
4,723,849
Utilities
22,854
90,138
-
112,992
Repairs and maintenance
346,907
694,520
1,756
1,043,183
Supplies and services
1,121,383
539,638
99,870
1,760,891
Insurance
27,899
66,756
-
94,655
Depreciation
207,266
695,586
27,639
930,491
Total Operating Expenses
4,461,528
4,075,268
129,265
8,666,061
OPERATING (LOSS)
185,040
(3,692,595)
(28,502)
(3,536,057)
NONOPERATING REVENUES
(EXPENSES)
Intergovernmental
-
2,370,862
-
2,370,862
Investment earnings
4,943
2,563
-
7,506
Interest expense
(1,305)
630
-
(675)
Gain on disposal of assets
-
(190,224)
-
(190,224)
Net Nonoperating Revenues
3,638
2,183,831
-
2,187,469
(LOSS) BEFORE TRANSFERS
188,678
(1,508,764)
(28,502)
(1,348,588)
TRANSFERS IN
43,333
2,658,008
- 2,701,341
CHANGE IN NET POSITION
232,011
1,149,244
(28,502) 1,352,753
NET POSITION, BEGINNING
878,233
17,980,714
760,973 19,619,920
NET POSITION, ENDING
$ 1,110,244 $
19,129,958 $
732,471 $ 20,972,673
142
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2022
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
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from issuance of debt
Acquisition and construction of capital assets
Principal Paid
Interest paid
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Total Other
Refuse Transit Enterprise
Collection System Salt Funds
$ 4,710,282 $ 343,346 $ 100,763 $ 5,154,391
(1,579,735) (1,280,479) (101,626) (2,961,840)
(2,957,062) (2,263,815) - (5,220,877)
47,597 37,792 - 85,389
221,082 (3,163,156) (863) (2,942,937)
43,333
2,658,008
- 2,701,341
-
2,466,901
- 2,466,901
43,333
5,124,909
- 5,168,242
(688,271)
(2,237,378)
- (2,925,649)
(5,800)
(33,679)
- (39,479)
(1,763)
-
- (1,763)
(695,834)
(2,271,057)
- (2,966,891)
4,943
2,563
- 7,506
(426,476)
(306,741)
(863) (734,080)
1,427,059
3,955,145
68,080 5,450,284
$ 1,000,583
3,648,404 $
67,217 $ 4,716,204
143
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS EXHIBIT B-3
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2022
Business -type Activities - Enterprise Funds
Total Other
Refuse Enterprise
Collection Transit Salt Funds
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR)
OPERATING ACTIVITIES
Operating income (loss) $ 185,040 $ (3,692,595) $ (28,502) $ (3,536,057)
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 - pension related
Decrease in deferred outflows - OPEB related
Increase in deferred inflows - pension related
Increase in deferred inflows - OPEB related
Increase in total OPEB liability
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Amortization of bond discount (premium)
Acquisition of capital assets through accounts and retainage
payable
207,266
695,586
27,639 930,491
111,311
(1,535)
- 109,776
-
(14,455)
- (14,455)
(60,692)
125,028
- 64,336
17,182
33,837
- 51,019
(1,031,644)
(1,295,669)
- (2,327,313)
81,599
7,882
- 89,481
(8,813)
(8,574)
- (17,387)
711,409
977,764
- 1,689,173
41,916
26,835
- 68,751
(33,492)
(17,260)
- (50,752)
36,042
529,439
27,639 593,120
$ 221,082
$ (3,163,156) $
(863) $ (2,942,937)
$ 275 $ 577 $ - $ 852
$ - $ 121,413 $ - $ 121,413
144
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.
145
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2022
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Inventories
Total Current Assets
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation and amortization
Net Capital Assets
Total Noncurrent Assets
Total Assets
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Total Current Liabilities
NONCURRENT LIABILITIES
Net pension liability
Total Noncurrent Liabilities
Total Liabilities
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
NET POSITION
Net investment in capital assets
Unrestricted
Total Net Position (Deficit)
General Garage Stores/
Service Service Printing
$ 429,499 $ 783,830 $ -
- 80,752 23,172
429,499 864,582 23,172
- 361,329 -
- (299,580) -
- 61,749 -
- 61,749 -
429,499 926,331 23,172
147,789 83,459 -
- 94,932 6,014
6 46,054 -
6 140,986 6,014
19,869
11,606 -
19,869
11,606 -
19,875
152,592 6,014
781,056 435,567 -
61,749 -
(223,643) 359,882 17,158
$ (223,643) $ 421,631 $ 17,158
146
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 4,977,981 $ 1,882,401 $ 8,073,711
138,004 - 138,004
1,679 199 1,878
- - 103,924
5,117,664 1,882,600 8,317,517
- 361,329
- (299,580)
- 61,749
- - 61,749
5,117,664 1,882,600 8,379,266
231,248
873,202 1,247,899 2,222,047
- - 46,060
873,202 1,247,899 2,268,107
- - 31,475
- - 31,475
873,202 1,247,899 2,299,582
- - 1,216,623
- - 61,749
4,244,462 634,701 5,032,560
$ 4,244,462 $ 634,701 $ 5,094,309
EXHIBIT C-1
147
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2022
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment earnings
Gain on disposal of assets
Net Nonoperating Revenues (Expenses)
CHANGE IN NET POSITION
NET POSITION (DEFICIT), BEGINNING, AS RESTATED
NET POSITION (DEFICIT), ENDING
General Garage Stores/
Service Service Printing
$ 1,700,641 $ 2,425,262 $ 549,344
- 28,387 -
1,700,641 2,453,649 549,344
1,023,166 870,806
-
- 31,237
7,238
- 118,700
-
- 1,224,072
524,312
- 9,613
-
- 24,449
-
1,023,166 2,278,877
531,550
677,475 174,772
17,794
13,263 -
13,263 -
677,475 188,035 17,794
(901,118) 233,596 (636)
$ (223,643) $ 421,631 $ 17,158
148
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 10,100,972 $ 677,147 $ 15,453,366
47,119 56,779 132,285
10,148,091 733,926 15,585,651
- - 1,893,972
- - 38,475
- - 118,700
9,834,366 261,192 11,843,942
- 677,147 686,760
- - 24,449
9,834,366 938,339 14,606,298
313,725 (204,413) 979,353
13,003 459 13,462
- - 13,263
13,003 459 26,725
326,728 (203,954) 1,006,078
3,917,734 838,655 4,088,231
$ 4,244,462 $ 634,701 $ 5,094,309
EXHIBIT C-2
149
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2022
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
Acquisition and construction of capital assets
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING, AS RESTATED
CASH AND CASH EQUIVALENTS, 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 - pension related
Increase in deferred inflows - pension related
Increase in accrued liabilities
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
General
Garage
Stores/
Service
Service
Printing
$ 1,700,641
$ 2,425,262 $
549,344
-
(1,342,368)
(546,310)
(1,271,142)
(1,005,980)
-
-
28,387
-
429,499
105,301
3,034
-
-
(3,034)
-
13,263
-
-
(31,282)
-
-
(18,019)
-
429,499
87,282
-
-
696,548
-
$ 429,499
$ 783,830 $
-
$ 677,475
$ 174,772
$ 17,794
-
24,449
-
-
(34,725)
(16,873)
-
75,979
2,113
(1,071,733)
(598,551)
-
84,731
46,508
-
739,020
412,072
-
6
4,797
-
(247,976)
(69,471)
(14,760)
$ 429,499
$ 105,301
$ 3,034
150
Health
Workers'
Insurance
Compensation
Reserve
Reserve
Total
$ 10,147,316
$ 677,147
$ 15,499,710
(10,055,581)
(770,219)
(12,714,478)
-
-
(2,277,122)
47,119
56,779
132,285
138,854
(36,293)
640,395
-
-
(3,034)
-
-
13,263
-
-
(31,282)
-
-
(18,019)
14,047
793
14,840
152,901
(35,500)
634,182
4,825,080
1,917,901
6,466,459
$ 4,977,981
$ 1,882,401
$ 7,100,641
$ 313,725 $ (204,413) $ 979,353
24,449
46,344 - 46,344
- - (51,598)
(221,215) 168,120 24,997
- (1,670,284)
- 131,239
- 1,151,092
- 4,803
(174,871) 168,120 (338,958)
$ 138,854 $ (36,293) $ 640,395
EXHIBIT C-3
151
THIS PAGE IS INTENTIONALLY LEFT BLANK
152
Statistical Section (Unaudited)
June 30, 2022
City of Dubuque, Iowa
153
THIS PAGE IS INTENTIONALLY LEFT BLANK
154
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's annual comprehensive 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. 156
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 166
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. 170
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. 181
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. 184
Sources: Unless otherwise noted, the information in these schedules is derived from the annual
comprehensive financial reports for the relevant year.
155
CITY OF DUBUQUE, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2013 2014 2015 2016 2017
Governmental activities
Net investment in capital assets
$ 342,046,442
$ 354,732,451
$ 348,173,267
$ 369,244,904
$ 375,578,520
Restricted
23,491,207
21,501,638
22,047,405
21,473,309
23,955,112
Unrestricted
(8,361,688)
(18,151,279)
(49,579,334)
(47,166,839)
(43,921,629)
Total governmental activities net position
$ 357,175,961
$ 358,082,810
$ 320,641,338
$ 343,551,374
$ 355,612,003
Business -type activities
Net investment in capital assets
$
138,498,777
$
138,842,390
$
148,487,126
$
161,326,743
$ 164,448,390
Restricted
6,011,848
5,315,519
7,796,668
4,254,907
3,796,752
Unrestricted
(641,384)
(593,202)
(4,568,933)
(7,339,071)
3,876,760
Total business -type activities net position
$
143,869,241
$
143,564,707
$
151,714,861
$
158,242,579
$ 172,121,902
Primary government
Net investment in capital assets
$
480,545,219
$
493,574,841
$
496,660,393
$
530,571,647
$ 540,026,910
Restricted
29,503,055
26,817,157
29,844,073
25,728,216
27,751,864
Unrestricted
(9,003,072)
(18,744,481)
(54,148,267)
(54,505,910)
(40,044,869)
Total primary government net positions
$
501,045,202
$
501,647,517
$
472,356,199
$
501,793,953
$ 527,733,905
156
Year
TABLE 1
2018 2019 2020 2021 2022
$ 379,040,697
$ 385,005,220
$ 387,344,725
$ 387,768,367
$ 386,739,779
27,269,997
28,321,603
26,501,434
34,083,157
35,584,078
(41,853,174)
(36,682,314)
(35,985,750)
(30,327,770)
(12,530,829)
$ 364,457,520
$ 376,644,509
$ 377,860,409
$ 391,523,754
$ 409,793,028
$ 168,205,523
$ 179,561,228
$ 191,757,112
$ 207,159,931
$ 219,652,664
3,053,616
3,131,716
3,187,364
2,942,894
3,124,213
10,696,792
12,617,567
17,437,890
27,491,072
32,915,285
$ 181,955,931
$ 195,310,511
$ 212,382,366
$ 237,593,897
$ 255,692,162
$ 547,246,220
$ 564,566,448
$ 579,101,837
$ 594,928,298
$ 606,392,443
30,323,613
31,453,319
29,688,798
37,026,051
38,708,291
(31,156,382)
(24,064,747)
(18,547,860)
(2,836,698)
20,384,456
$ 546,413,451
$ 571,955,020
$ 590,242,775
$ 629,117,651
$ 665,485,190
157
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 -
2013 2014 2015 2016 2017
$ 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
$ 26,851,624
24,323,023
967,936
12,993,331
15,464,781
4,101,423
2,963,134
87,665,252
12,817,669
6,483,229
5,021,523
3,420,296
21,521
3,968,761
4,274,967
181,617
36,189,583
$ 123,854,835
2,713,065
5,765,075
2,723,270
3,887,056
15,301,219
18,667,619
49,057,304
12,158,439
8,406,928
3,754,148
3,247,383
1,605
3,857,340
463,688
81,720
1,648,077
7,607,721
41,227,049
$ 90,284,353
158
TABLE 2
Year
2018
2019
2020
2021
2022
$ 29,482,962
$ 29,637,417
$ 32,079,903
$ 32,583,676
$ 30,548,958
20,393,871
24,835,035
22,667,132
20,949,455
21,942,380
883,217
1,442,658
1,677,181
1,487,042
1,003,870
14,323,710
12,916,646
13,576,571
11,341,436
14,452,466
21,109,384
15,837,039
17,848,570
18,168,279
16,866,498
7,573,081
5,944,116
8,821,692
10,046,004
7,210,508
3,129,502
3,387,730
2,929,997
2,791,647
2,004,709
96,895,727
94,000,641
99,601,046
97,367,539
94,029,389
11,614,347
12,177,352
11,725,889
12,248,931
12,197,134
7,109,421
7,892,423
7,631,411
7,604,425
7,212,652
6,159,039
7,025,525
5,887,171
6,164,947
6,047,606
2,866,510
2,845,911
3,414,851
3,334,222
2,972,990
10,143
19,874
3,161
-
-
4,244,551
4,215,881
4,387,683
4,546,168
4,452,838
4,722,979
4,533,060
4,748,463
4,494,303
4,027,600
119,421
182,092
333,556
147,524
129,265
36,846,411
38,892,118
38,132,185
38,540,520
37,040,085
$ 133,742,138
$ 132,892,759
$ 137,733,231
$ 135,908,059
$ 131,069,474
2,600,751
2,535,504
2,641,633
4,942,529
5,443,744
6,654,101
7,327,692
6,732,825
10,937,121
9,406,558
2,874,493
2,459,644
2,237,000
2,876,779
3,564,782
5,864,541
3,815,321
5,455,952
1,753,928
4,100,714
21,569,356
23,198,271
14,484,320
24,436,818
19,956,589
7,779,713
11,048,200
15,450,271
12,266,220
4,007,842
47,342,955
50,384,632
47,002,001
57,213,395
46,480,229
12,659,662
12,479,684
12,606,632
13,070,575
13,870,390
8,906,136
8,959,023
9,273,720
9,608,742
10,153,939
4,367,963
4,714,670
5,061,855
5,177,696
5,233,932
3,034,744
3,066,118
2,313,344
2,007,307
2,692,362
4
4
4,232,542
4,351,428
4,448,317
4,424,410
4,646,568
465,550
512,385
400,576
168,493
405,194
96,273
174,784
346,753
125,189
100,763
1,648,403
1,917,366
2,967,619
9,894,477
2,281,855
5,705,262
6,215,459
6,410,594
6,691,110
7,444,056
41,116,539
42,390,921
43,829,410
51,167,999
46,829,059
$ 88,459,494
$ 92,775,553
$ 90,831,411
$ 108,381,394
$ 93,309,288
(Continued)
159
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 -
2013 2014 2015 2016 2017
$ (54,441,708)
$ (51,879,637)
$ (50,692,165)
$ (38,607,948)
$ (51,334,940)
(979,144)
(3,065,070)
5,282,747
5,037,466
12,522,340
$ (55,420,852)
$ (54,944,707)
$ (45,409,418)
$ (33,570,482)
$ (38,812,600)
$ 32,668,554
$ 33,264,283 $
36,277,719
$ 36,518,506 $
39,678,473
8,764,787
8,211,366
8,760,246
9,155,411
8,890,046
1,953,763
2,006,514
2,623,551
2,128,042
2,821,745
2,568,347
2,609,421
2,828,688
4,360,107
4,558,847
8,452,298
7,878,008
7,397,709
8,440,161
8,098,324
201,153
777,958
668,134
1,082,165
335,577
907,122
483,782
19,495
813,492
83,720
(1,092,236)
(2,444,846)
(7,288,593)
(979,900)
(1,071,163)
65,321
135,461
185,356
407,528
231,746
384,697
180,229
6,571
102,824
54,074
(555,031)
-
-
-
-
1,092,236
2,444,846
7,288,593
979,900
1,071,163
987,223
2,760,536
7,480,520
1,490,252
1,356,983
$ 55,411,011
$ 55,547,022
$ 58,767,469
$ 63,008,236
$ 64,752,552
$ (17,920)
$ 906,849 $
594,784
$ 22,910,036
$ 12,060,629
8,079
(304,534)
12,763,267
6,527,718
13,879,323
$ (9,841)
$ 602,315 $
13,358,051
$ 29,437,754
$ 25,939,952
160
TABLE 2
(continued)
Year
2018 2019 2020 2021 2022
$ (49,552,772)
$ (43,616,009)
$ (52,599,045)
$ (40,154,144)
$ (47,549,160)
4,270,124
3,494,540
5,697,225
12,235,793
9,788,974
$ (45,282,648)
$ (40,121,469)
$ (46,901,820)
$ (27,918,351)
$ (37,760,186)
$ 39,632,246
$ 37,973,888
$ 38,354,691
$ 39,524,078
$ 39,406,493
8,610,948
8,940,109
9,652,332
11,328,295
12,738,941
2,286,469
2,113,273
2,117,506
2,036,045
2,915,854
4,832,958
5,072,350
4,976,472
4,920,610
6,044,713
8,062,251
8,730,986
7,394,294
8,077,003
12,000,140
688,769
1,858,476
1,857,420
142,102
(390,365)
309,857
94,980
23,866
296,969
244,104
(5,423,015)
(8,981,064)
(10,561,636)
(12,845,032)
(7,430,546)
59,000,483
55,802,998
53,814,945
53,480,070
65,529,334
268,283
798,497
796,494
130,706
119,466
4,680
80,479
16,500
-
(206,351)
5,423,015
8,981,064
10,561,636
12,845,032
7,430,546
5,695,978
9,860,040
11,374,630
12,975,738
7,343,661
$ 64,696,461
$ 65,663,038
$ 65,189,575
$ 66,455,808
$ 72,872,995
$ 9,447,711
$ 12,186,989
$ 1,215,900
$ 13,325,926
$ 17,980,174
9,966,102
13,354,580
17,071,855
25,211,531
17,132,635
$ 19,413,813
$ 25,541,569
$ 18,287,755
$ 38,537,457
$ 35,112,809
161
CITY OF DUBUQUE, IOWA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2013
2014
2015
2016
2017
General Fund
Nonspendable
$ 6,646,278 $
6,549,063 $
6,082,043
$ 6,049,052
$ 5,585,672
Restricted
-
-
-
-
2,208
Assigned
3,434,440
1,904,805
647,772
1,015,935
1,590,065
Unassigned
8,806,171
7,356,066
8,693,524
10,908,497
12,582,596
Total general fund
$ 18,886,889 $
15,809,934 $
15,423,339
$ 17,973,484
$ 19,760,541
All Other Governmental Funds
Nonspendable
$ 9,092,520 $
8,640,780 $
1,183,423
$ 553,292
$ 944,856
Restricted
30,738,046
23,620,615
30,496,183
27,450,187
28,103,397
Committed
10,827,172
10,548,592
12,298,896
7,635,502
6,592,154
Unassigned
-
-
-
-
-
Total all other governmental funds $ 50,657,738 $ 42,809,987 $ 43,978,502 $ 35,638,981 $ 35,640,407
162
Year
TABLE 3
2018 2019 2020 2021 2022
$ 5,414,922 $ 5,369,478 $ 5,145,558 $ 3,895,638 $ 3,631,563
-
229,995
219,741
197,264
186,705
1,267,250
1,438,616
1,396,196
2,868,215
4,292,669
15,193,241
19,276,479
20,128,223
28,023,989
36,610,486
$ 21,875,413
$ 26,314,568
$ 26,889,718
$ 34,985,106
$ 44,721,423
$ 415,271
$ 406,813
$ 1,030,515
$ 960,898
$ 1,159,785
30,347,598
34,367,024
30,247,351
40,785,902
42,155,557
4,660,158
3,009,111
5,823,218
7,901,868
10,202,856
(2,021,937)
(1,185,047)
(2,703,558)
(1,561,830)
-
$ 33,401,090 $ 36,597,901 $ 34,397,526 $ 48,086,838 $ 53,518,198
163
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 -
$ 45,440,973
$ 46,034,361
$ 50,490,204
$ 51,580,084
$ 55,949,111
175,486
154,692
85,501
111,193
261,233
1,271,771
1,136,941
1,198,420
1,480,643
1,505,564
26,580,831
23,050,052
20,828,524
29,302,824
26,314,297
8,952,179
10,264,257
10,711,243
10,919,854
10,816,025
484,128
455,219
362,661
421,925
484,687
180,016
756,809
668,134
1,082,165
335,577
370,154
678,561
789,268
1,440,405
689,237
8,452,298
7,878,008
7,397,709
8,440,161
8,098,324
1,315,915
1,705,275
1,466,542
1,367,875
1,811,681
93,223,751
92,114,175
93,998,206
106,147,129
106,265,736
26,506,714
27,644,190
27,570,773
28,036,551
29,155,128
13,416,108
13,942,772
11,200,427
14,597,823
11,728,716
680,466
1,049,194
939,172
1,015,987
868,280
11,218,019
12,351,497
12,300,454
11,909,029
12,397,294
18,678,496
14,420,980
16,418,909
13,473,413
16,474,553
5,035,108
5,898,293
5,977,605
6,436,114
7,287,586
3,182,240
4,595,808
4,910,735
10,302,412
17,615,698
3,991,115
3,650,694
3,577,829
3,707,268
3,579,807
16,636,698
18,779,651
14,829,037
31,504,581
16,260,851
99,344,964
102,333,079
97,724,941
120,983,178
115,367,913
(6,121,213) (10,218,904) (3,726,735) (14,836,049) (9,102,177)
6,577,268
4,949,148
(4,949,148)
-
15,295,630
15, 862,516
(16,981,203)
(17,294,762)
49,209
59,796
2,438,837
666,648
7,379,741
(705,802)
11,137,321
3,933,882
230,000
72,852
292,521
319,384
-
11,023,700
-
4,650,000
-
18,073,553
17,397,007
18,814,586
(25,241,795)
(18,376,907)
(19,917,219)
106,288
86,359
41,345
360,436
1,063,814
378,861
4,508,655
9,046,676
10,890,657
8.57% 9.51% 9.97% 15.17% 20.94%
164
Year
TABLE 4
2018 2019 2020 2021 2022
$ 55,362,621 $
54,101,901
$ 54,818,674 $
57,809,028 $
61,106,001
122,968
113,178
76,394
101,219
42,996
1,642,498
1,619, 892
1,497,086
1,983,531
2,211,503
27,229,554
31,359,695
28,618,060
31,984,376
27,568,957
11,559,017
12,476,036
10,994,598
13,480,915
16,152,093
407,322
404,400
365,458
375,268
303,348
688,769
1,701,846
1,699,015
120,890
(401,489)
816,922
1,343,916
1,163,721
3,564,843
809,911
8,062,251
8,708,702
7,394,294
8,077,003
12,000,140
1,589,072
1,526,804
3,517,089
1,399,203
2,870,089
107,480,994
113,356,370
110,144,389
118,896,276
122,663,549
28,581,466
28,807,920
29,518,515
29,038,359
31,256,017
11,687,309
12,851,393
11,838,812
12,104,310
15,643,225
854,045
1,046,184
1,340,544
1,067,491
880,876
12,776,591
13,037,048
13,199,378
11,917,333
14,626,704
20,350,200
15,730,191
16,685,406
17,531,856
18,756,833
6,755,479
6,571,094
7,447,439
7,499,790
7,930,781
7,989,850
5,509,605
7,065,499
27,524,288
4,518,117
3,274,200
3,320,911
3,044,421
2,997,621
2,693,685
17,402,848
20,145,054
21,089,439
15,308,122
17,435,407
109,671,988
107,019,400
111,229,453
124,989,170
113,741,645
(2,190,994)
6,336,970
(1,085,064)
(6,092,894)
8,921,904
110,000
2,883,875
1,372,907
-
9,565,000
16,915
81,693
62,182
953,857
123,888
1,778,325
25,605,950
18,889,096
17,025,952
17,146,200
13,730,128
12,868,560
(20,980,391)
(18,876,402)
(19,858,343)
(19,145,976)
(16,765,216)
98,058
87,843
71,604
136,979
17,327
2,154,546
96,035
665,289
924,656
282,482
2,066,549
1,298,996
(540,161)
22,205,594
6,092,041
-
-
5,672,000
-
5,672,000
11.96% 9.84% 11.01% 28.27% 7.48%
165
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Real Property
Exemptions
Total
Levy
Fiscal
Taxable
Assessed
Real
Taxable
Assessed
Year
Year
Value
Value
Property
Value
Value
2011
2013
2,337,129
3,476,638
8,872
2,328,257
3,476,638
2012
2014
2,398,151
3,503,774
8,799
2,389,352
3,503,774
2013
2015
2,522,048
3,686,202
8,729
2,513,319
3,686,202
2014
2016
2,508,933
3,723,003
8,631
2,500,302
3,723,003
2015
2017
2,652,700
3,914,425
8,086
2,644,614
3,914,425
2016
2018
2,686,813
3,931,498
7,783
2,679,030
3,931,498
2017
2019
2,765,470
4,141,732
7,921
2,757,549
4,141,732
2018
2020
2,825,245
4,185,444
7,640
2,817,605
4,185,444
2019
2021
2,912,635
4,378,243
7,531
2,905,104
4,378,243
2020
2022
2,980,617
4,463,262
7,432
2,973,185
4,463,262
Source: Dubuque County Assessor's and Auditor's Offices
Total
Taxable
Value to
Total
Assessed
Value
66.97
68.19
68.18
67.16
67.56
68.14
66.58
67.50
66.53
66.61
TABLE 5
Total Direct
Tax Rate _
10.78478
11.02586
11.02588
11.02590
11.16739
10.89220
10.58844
10.33144
10.14400
9.88899
166
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
Fiscal
Dubuque
Year
Year
City
2011
2013
10.78477
2012
2014
11.02586
2013
2015
11.02588
2014
2016
11.02590
2015
2017
11.16739
2016
2018
10.89220
2017
2019
10.58844
2018
2020
10.33144
2019
2021
10.14400
2020
2022
9.88899
Dubuque
Board of
Ratio of
School
Education and
Area 1
Dubuque
Dubuque
District
Independents
Voc. Tech
County
Total
City to Total
15.40388
0.71653
0.98407
6.43124
34.32049
31.42
%
14.60281
0.75274
0.90455
6.43124
33.71720
32.70
13.99630
0.66355
0.90807
6.43124
33.02504
33.39
14.05629
0.63899
0.91036
6.38779
33.01933
33.39
14.97697
0.63146
0.93757
6.29673
34.01012
32.84
14.95665
0.62780
1.09993
6.34143
33.91801
32.17
14.59791
0.65204
1.09993
5.97760
32.91592
32.11
14.71233
0.64911
1.03168
5.94098
32.66554
31.63
14.66255
0.62819
0.94734
5.91098
32.29306
31.41
14.55590
0.61829
0.90520
5.74009
31.70847
31.19
Separate components of the Dubuque City Rate is as follows:
Levy
Fiscal
Public
Employee
Debt
Year
Year
General
Transit
Insurance
Benefits
Service
Total
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
2020
2022
8.10000
0.60512
0.16791
0.92381
0.09215
9.88899
Source: Dubuque County Auditor's Office.
167
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2022 2013
Taxable
Taxpayer
Value
Rank
Peninsula Gaming Company LLC
$ 57,487
1
Kennedy Mall Inc.
30,088
2
Progressive Proccessing LLC
(Hormel)
22,852
3
MAR Holdings LLC (Medical Assoc.)
20,273
4
Nordstrom, Inc.
13,320
5
KMDE LLC
12,433
6
McGraw HIll Global Education LLC
12,150
7
Platinum Holdings LLC
12,150
8
GRDT Investments LLC (Queck)
11,812
9
MIZE Propco LP
10,817
10
ITC Midwest LL
Otto A LLC
CenturyLINK
$ 203,382
Source: Dubuque County Auditor's Office
TABLE 7
Percentage of
Percentage of
Total City
Total City
Taxable
Taxable
Taxable
Value
Value
Rank
Value
1.93 %
$ 56,784
1
2.43 %
1.01
26,940
3
1.15
0.77
21,397
4
0.92
0.68
18,815
5
0.80
0.45
17,221
7
0.74
0.42
0.41
14,729
8
0.63
0.41
11,588
10
0.50
0.40
0.36
37,147
2
1.59
14,100
9
0.60
18,745
6
0.80
6.84 %
$ 237,466
10.16 %
168
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
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
2022
2021
26,260
26,142
99.6
41
26,183
99.7
478
1.82
(1) Excludes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
169
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
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
2022
47,326,155
17,654,438
-
3,473,387
30,576,996
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
170
TABLE 9
Type Activities
Capital
Other
Total
Percentage of
Loan
Revenue
Loans
Primary
Personal
Per
Notes
Bonds
Payable
Government
Income (1)
Capita (1)
$ 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
7.0
4,135
113,108,033
31,677,659
54,580
243,871,248
*
4,125
171
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
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
2022
77,903
2,980,617
2.62
4,463,262
1.75
1,350
*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.
172
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2022
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 $ 75,827,582
$ 17,760,000
$ - $ -
$ 3,473,388 100.00 %
$ 97,060,970
Overlapping:
Dubuque County 17,365,000 - - - 124,492 72.69 % 12,713,112
Dubuque Community School District - - - - - 96.19 % -
Northeast Iowa Community College 36,735,000 - - - 16,910,000 72.78 % 39,042,831
Total Overlapping 54,100,000 - - - 17,034,492 51,755,943
Total $ 129,927,582 $ 17,760,000 $ - $ - $ 20,507,880 $ 148,816,913
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.
173
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2013 2014 2015 2016
Debit limit $ 181,668 $ 183,621 $ 193,114 $ 196,031
Total net debt
applicable to limit 144,118 131,289 154,643 152,386
Legal debit margin $ 37,550 $ 52,332 $ 38,471 $ 43,645
Total net debt
applicable to the debt
limit as a percentage
of debt limit 79.33% 71.50% 80.08% 77.74%
174
TABLE 12
2017 2018 2019 2020 2021 2022
$ 207,174 $
209,049 $
221,513 $
239,298 $
239,298
$ 241,616
141,076
124,926
117,223
109,021
102,256
101,870
$ 66,098 $
84,123 $
104,290 $
130,277 $
137,042
$ 139,746
68.10%
59.76%
52.92%
45.56%
42.73%
42.16%
Legal Debt Margin Calculation for Fiscal Year 2022
Estimated actual value
Debt limit - 5% of total actual valuation
Debt applicable to limit:
(Including GO Debt, Loans Payable, and TIF Debt)
Legal debt margin
$ 4,832,321,670
$ 241,616,084
(101,870,161)
$ 139,745,923
175
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
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
2022 10,198
5,443
4,755
1,234
355
1,589
2.99
STORMWATER UTILITY
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
2022 5,239
2,951
2,287
1,064
414
1,478
1.55
SEWAGE DISPOSAL WORKS
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
2022 13,878
7,290
6,588
3,065
1,309
4,374
1.51
(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.
176
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
Water
Fiscal Year Revenue
2013
2014
2015
2016
2017
2018
2019
2020
2021
6,701,771
7,028,091
7,231,393
8,159,240
8,248,796
8,525,072
8,636,521
8,958,162
9,040,349
2022 9,969,922
Source: Cash basis receipt ledgers.
TABLE 14
Sewer
Gallons
Revenue
Billed
$ 8,472,382
1,945,227,547
9,756,996
1,845,151,329
10,417,833
1,864,028,948
11,772,847
1,883,797,577
12,000,115
1,844,997,668
12,015,480
1,632,426,374
12,266,217
1,750,735,443
12,395,751
1,738,198,948
12,583,458
1,774,274,430
13,806,812
1,897,915,407
*Revenue includes penalties and investment earnings collected.
New in 2015 - revenue does not include sales tax. All years reflect this change.
New in 2020 - revenue does not include bonds.
WATER RATE SCHEDULE HISTORY
Steps
Gallons
2022
2021
2020
2019
2018
2017
2016
2015
First
22,440
@
$ 0.00553
$ 0.00527
$ 0.00512
$ 0.00488
$ 0.00474
$ 0.00447
$ 0.00406
$ 0.00387
Next
89,760
@
0.00454
0.00432
0.00419
0.00399
0.00387
0.00365
0.00332
0.00316
Next
261,800
@
0.00423
0.00403
0.00391
0.00372
0.00361
0.00340
0.00309
0.00294
Next
374,000
@
0.00373
0.00355
0.00345
0.00329
0.00280
0.00301
0.00274
0.00261
Excess
@
0.00327
0.00311
0.00302
0.00288
0.00280
0.00264
0.00240
0.00229
177
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST TEN FISCAL YEARS
TABLE 15
Fiscal Year
Residential
Commercial
Industrial
Government
Total
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
2022
23,360
2,138
75
171
25,744
178
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2022
Customer
Simmons Pet Food, Inc.
Rousselot Inc #155296
Prairie Farms Dairy Inc
Hormel Foods Corporation*
Hormel Foods Corporation*
Yes Companies Exp Fred, LLC
APC, Inc.
Finley Hospital
Stonehill Nursing Home
Alpine Park MHC LLC
IADU Table Mound MHP LLC
Midwest Car Washes LLC*
Platinum Holdings LLC
Midwest Car Washes LLC*
Total Receipts
TABLE 16
Percentage of
Percentage of
Water
Total Water
Sewer
Total Sewer
Receipts
Rank
Receipts
Receipts
Rank
Receipts
$ 549,608
1
5.51 %
281,117
2
2.82
251,523
3
2.52
191,675
4
1.92
$ 434,299
1
3.15 %
165,668
5
1.66
373,088
2
2.70
55,180
6
0.55
113,243
3
0.82
53,772
7
0.54
48,264
8
0.48
70,619
6
0.51
45,574
9
0.46
70,619
5
0.59
43,063
10
0.43
84,757
4
0.61
65,289
7
0.47
61,363
8
0.44
59,946
9
0.43
58,761
10
0.43
*Same company, separate accounts. Previously combined several accounts under same business, now listed separately.
179
CITY OF DUBUQUE, IOWA
SALES TAX INCREMENT BONDS
FISCAL YEAR ENDING JUNE 30, 2022
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
*
9,751,827
(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
8,989,177
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
8,666,077
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
180
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
59,667
3,294,692,406
55,218
38
10,558
9.1
2021
59,565
3,286,655,724
56,782
39
10,371
5.4
2022 59,119 * * 39 10,120 2.9
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.
181
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS TABLE 19
CURRENT YEAR AND NINE YEARS AGO
2022 2013
Percentage of
Percentage of
# of
Total City
# of
Total City
Employer
Employees
Rank
Employment (1)
Employees
Rank
Employment (1)
John Deere (2)
2,830
1
5.21 %
2,400
1
4.44 %
Dubuque Community Schools
2,000
2
3.68
1,946
2
3.60
Mercy One Medical Centr
1,440
3
2.65
1,000
5
1.85
Medical Associates
1,100
4
2.03
1,046
4
1.93
Unity Point Health -Finley Hospital
1,012
5
1.86
859
6
1.59
Cottingham & Butler
800
9
1.47
Andersen Windows
750
6
1.38
City of Dubuque
737
7
1.36
691
7
1.28
Sedgwick
700
8
1.29
Dupaco Community Credit Union
641
10
1.18
IBM
1,300
3
2.40
Diamond Jo
600
8
1.11
Eagle Window and Door
528
10
0.98
Prudential Retirement
550
9
1.02
12,010
22.10 %
10,920
20.22 %
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.
182
THIS PAGE IS INTENTIONALLY LEFT BLANK
183
CITY OF DUBUQUE, IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2013
2014
2015
2016
Public Safety
Emergency Communications
13.00
13.00
13.00
13.00
Fire
90.00
90.00
90.00
90.00
Police
115.00
115.08
115.88
116.00
Building Services
9.00
9.24
11.66
12.00
Public Works
Public Works
86.17
86.42
86.42
86.42
Engineering
29.00
29.00
29.00
30.00
Health & Social Services
Health Services
4.00
4.00
4.00
4.00
Human Rights
5.00
5.00
5.00
5.00
Cultural and Recreation
Civic Center
0.15
0.15
0.15
0.15
Library
19.00
19.00
19.00
19.00
Park
23.50
23.50
23.50
23.50
Recreation
9.93
9.93
10.93
11.93
Community & Economic Development
Community / Economic Dev
3.00
4.00
4.00
2.00
Housing Services
25.80
27.00
26.00
21.00
Planning Services
8.00
8.00
8.00
8.00
General Government
Airport
12.00
12.00
12.00
12.00
Cable TV
2.00
2.00
2.00
2.00
City Clerk's Office
3.00
3.00
3.00
3.00
City Manager's Office
15.00
15.00
16.00
16.00
Finance
14.00
14.08
14.88
15.00
Legal
5.00
5.00
5.00
5.00
Information Services
7.50
8.00
8.00
8.00
Business Type
Water
25.00
26.00
26.00
25.00
Water & Resource Recovery Center
18.00
18.00
18.00
17.00
Parking
9.00
9.00
9.00
9.00
Transit
6.00
6.32
8.00
13.00
Total
557.05
561.72
568.42
567.00
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.
184
TABLE 20
2017
2018
2019
2020
2021
2022
14.00
14.00
14.00
15.00
15.00
15.00
90.00
90.00
90.00
91.00
92.00
92.00
116.00
116.00
117.00
118.00
119.00
119.00
12.00
12.00
11.00
11.00
11.00
12.00
86.42
86.42
87.42
87.42
89.42
89.42
30.00
26.06
26.00
27.00
28.00
28.00
4.00
4.00
4.00
5.00
6.00
6.00
5.00
5.00
5.00
5.00
4.00
4.00
0.15
0.15
0.15
0.15
0.15
0.15
19.00
19.00
19.00
19.00
20.00
20.00
22.50
22.50
22.50
22.50
22.50
22.50
11.93
11.93
11.93
11.93
11.93
12.93
2.00
3.00
3.00
3.00
3.00
3.00
25.00
25.00
23.52
27.00
29.00
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
17.00
17.50
15.50
18.00
18.00
15.00
15.00
14.00
19.00
19.00
19.00
5.00
4.00
4.00
4.00
5.00
5.00
8.00
8.00
8.00
8.00
8.00
8.00
25.00
25.00
24.00
25.00
25.00
25.00
17.00
17.00
15.00
15.00
15.00
15.00
8.00
7.00
-
-
-
-
13.00
14.00
20.00
23.00
23.00
23.00
570.00
567.06
562.02
577.50
589.00
591.00
185
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY
FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal -
2013
2014
2015
2016
Public Safety
Police
Physical arrests
6,106
5,532
3,767
3,397
Traffic violations
12,089
8,959
7,354
9,058
Parking violations
35,516
36,768
37,635
38,880
Fire
Number of calls answered
4,792
5,165
5,603
5,750
Inspections conducted
512
471
791
993
Sewer
Sewage system
Daily average treatment in gallons
10,987,000
7,091,000
7,237,000
7,016,000
Maximum daily capacity of treatment plant in gallons
23,240,000
24,500,000
24,500,000
24,500,000
Water systems
Daily average consumption in gallons
6,953,000
7,235,000
6,956,000
7,068,184
Maximum daily capacity of plant in gallons
18,000,000
18,000,000
18,000,000
18,000,000
Refuse (Municipal Collection)
Tonnage
10,535
10,311
10,690
11,098
Sources: Various City Departments.
Statistics updated for fiscal year 2017
186
TABLE 21
Year
2017 2018 2019 2020 2021 2022
3,238
3,519
3,403
2,830
2,491
2,573
9,063
9,415
8,369
7,156
5,312
6,317
33,953
32,857
25,685
18,044
20,428
19,851
5,990
5,949
6,058
6,304
7,277
7,814
1,649
1,675
1,232
1,260
296
807
7,377,000
7,900,000
7,930,000
8,730,000
6,682,013
6,682,013
24,500,000
24,500,000
24,500,000
24,500,000
24,500,000
24,500,000
7,200,000
6,917,000
6,133,000
6,210,000
6,390,000
6,510,000
18,000,000
18,000, 000
18,000,000
18,000, 000
13 ,000,000
13,000, 000
11,284
11,481
11,569
12,212
13,482
13,290
187
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
Accessible ballfield
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
2013
2014
2015
2016
1
1
1
1
22
22
22
22
6
6
6
6
3
3
3
3
329
331
333
332
2,084
2,110
2,161
2,162
2
2
2
2
389
389
373
373
1
1
1
1
1
1
1
1
51
51
53
53
1,001
1,001
974
974
1
1
1
1
2
2
2
2
7
7
11
11
1
1
1
1
20 20 20 20
304 307
141 144
1 1
22,428 22,888
321 315
22,536 22,702
2,879 2,336
320 322
145 147
1 1
22,928 23,119
318 329
22,787 22,970
2,346 2,380
188
TABLE 22
2017
2018
2019
2020
2021
2022
1
1
1
1
1
1
22
22
22
22
22
22
6
6
6
6
6
6
3
3
3
3
3
3
336
334
340
331
329
336
2,184
2,312
2,436
2,489
2,507
2,566
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
985
985
985
1
1
1
1
1
1
2
2
2
2
2
2
11
11
10
10
9
9
1
1
1
1
1
1
20
20
16
16
16
16
326
321
332
333
308
311
152
156
158
151
160
157
1
1
1
1
1
1
23,343
23,423
23,488
23,601
22,299
23,109
337
370
410
325
293
330
23,443
23,546
23,605
23,695
23,770
23,966
2,450
2,973
2,539
2,553
2,596
2,622
189
CITY OF DUBUQUE, IOWA
RETAIL SALES
LAST TEN CALENDAR YEARS
Taxable
Number of
Year
Retail Sales
Businesses
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
1,479,425,072
2,906
2022
Data Sources:
Iowa Department of Revenue
* Unavailable at report date
TABLE 23
190
Compliance Section
June 30, 2022
City of Dubuque, Iowa
191
THIS PAGE IS INTENTIONALLY LEFT BLANK
192
FORWS
1401 50th Street, Suite 350 / West Des Moines, IA 50266
P 515.223.0159 / F 515.223.5429
forvis.com
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
Independent Auditor's Report
The Honorable Mayor and Members of City Council
City of Dubuque, Iowa
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 (the City), as of and for the year ended
June 30, 2022, and the related notes to the financial statements, which collectively comprise the City's
basic financial statements and have issued our report thereon dated June 6, 2023, which contained
emphasis of matter paragraphs regarding a change in accounting principle and restatement of previously
issued financial statements reported on by other auditors. Our report includes a reference to other auditors
who audited the financial statements of the Dubuque Initiatives and Subsidiaries and the Dubuque
Convention and Visitors Bureau, as described in our report on the City's financial statements. The financial
statements of the Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau
were not audited in accordance with Government Auditing Standards, and accordingly, this report does not
include reporting on internal control over financial reporting or compliance and other matters associated
with the Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau or that are
reported on separately by those auditors who audited the financial statements of the Dubuque Initiatives
and Subsidiaries and the Dubuque Convention and Visitors Bureau.
Report on 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.
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office
��� PRAXITY
P193u
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 were not identified. We identified a deficiency in internal control, described in the accompanying
schedule of findings and questioned costs as item 2022-01 that we consider to be a material weakness.
Report on 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.
City's Response to Findings
Government Auditing Standards requires the auditor to perform limited procedures on the City's response
to the findings identified in our audit and described in the accompanying schedule of findings and
questioned costs. The City's response was not subjected to the other auditing procedures applied in the
audit of the financial statements, and accordingly, we express no opinion on the response.
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 entity's internal control and compliance. Accordingly, this
communication is not suitable for any other purpose.
FOF,V I5, l.LP
West Des Moines, Iowa
June 6, 2023
194
FORWS
1401 50th Street, Suite 350 / West Des Moines, IA 50266
P 515.223.0159 / F 515.223.5429
forvis.com
Report on Compliance for Each Major Federal Program and Report
on Internal Control over Compliance
Independent Auditor's Report
The Honorable Mayor and Members of City Council
City of Dubuque, Iowa
Dubuque, Iowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque (the City's) compliance with the types of compliance requirements
identified as subject to audit 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, 2022. 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.
In our opinion, the City complied, in all material respects, with the compliance requirements referred to
above that could have a direct and material effect on each of its major federal programs for the year ended
June 30, 2022.
Basis for Opinion on the Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GAAS); the standards applicable to financial audits contained in Government
Auditing Standards issued by the Comptroller General of the United States (Government Auditing
Standards); 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). Our responsibilities under those standards and the Uniform Guidance are further described in
the "Auditor's Responsibilities for the Audit of Compliance" section of our report.
We are required to be independent of the City and to meet our other ethical responsibilities, in accordance
with relevant ethical requirements relating to our audit. We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our opinion on compliance for each major federal
program. Our audit does not provide a legal determination of the City's compliance with the compliance
requirements referred to above.
Responsibilities of Management for Compliance
Management is responsible for compliance with the requirements referred to above and for the design,
implementation, and maintenance of effective internal control over compliance with the requirements of
laws, statutes, regulations, rules, and provisions of contracts or grant agreements applicable to the City's
federal programs.
FORVIS is a trademark of FORVIS, LLP, registration of which is pending with the U.S. Patent and Trademark Office
��� PRAXITY
P 195u5
Auditor's Responsibilities for the Audit of Compliance
Our objectives are to obtain reasonable assurance about whether material noncompliance with the
compliance requirements referred to above occurred, whether due to fraud or error, and express an opinion
on the City's compliance based on our audit. Reasonable assurance is a high level of assurance but is not
absolute assurance and therefore is not a guarantee that an audit conducted in accordance with GAAS,
Government Auditing Standards, and the Uniform Guidance will always detect material noncompliance
when it exists. The risk of not detecting material noncompliance resulting from fraud is higher than for that
resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or
the override of internal control. Noncompliance with the compliance requirements referred to above is
considered material, if there is a substantial likelihood that, individually or in the aggregate, it would
influence the judgment made by a reasonable user of the report on compliance about the City's compliance
with the requirements of its major federal program as a whole.
In performing an audit in accordance with GAAS, Government Auditing Standards, and the Uniform
Guidance, we:
• Exercise professional judgment and maintain professional skepticism throughout the audit.
• Identify and assess the risks of material noncompliance, whether due to fraud or error, and design
and perform audit procedures responsive to those risks. Such procedures include examining, on a
test basis, evidence regarding the City's compliance with the compliance requirements referred to
above and performing such other procedures as we considered necessary in the circumstances.
• Obtain an understanding of the City's internal control over compliance relevant to the audit in order
to design 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 the City's internal control over compliance.
Accordingly, no such opinion is expressed.
We are required to communicate with those charged with governance regarding, among other matters, the
planned scope and timing of the audit and any significant deficiencies and material weaknesses in internal
control over compliance that we identified during the audit.
Report on 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 "Auditor's
Responsibilities for the Audit of Compliance" section above and was not designed to identify all deficiencies
in internal control over compliance that might be material weaknesses or significant deficiencies in internal
control over compliance. Given these limitations, during our audit we did not identify any deficiencies in
internal control over compliance that we consider to be material weaknesses, as defined above. However,
material weaknesses or significant deficiencies in internal control over compliance may exist that were not
identified.
196
Our audit was not designed for the purpose of expressing an opinion on the effectiveness of internal control
over compliance. Accordingly, no such opinion is expressed.
The purpose of this report on internal control over compliance is solely to describe the scope of our testing
of internal control over compliance and the results of that testing based on the requirements of the Uniform
Guidance. Accordingly, this report is not suitable for any other purpose.
FOU 15, LLP
West Des Moines, Iowa
June 6, 2023
197
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2022
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U.S. Department of Agriculture
Direct program:
Soil and Water Conservation
Environmental Quality Incentives Program
Conservation Stewardship Program
Total U.S. Department of Agriculture
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG) - Entitlements Cluster:
Direct program:
CDBG - Entitlement Grants
CDBG - Entitlement Grants
CDBG - Entitlement Grants
CDBG - Entitlement Grants
COVID-19 - CDBG/Entitlement Grants
Pass -through program from:
Iowa Economic Development Authority
CDBG - Entitlement Grants
Total CDBG - Entitlements Grants Cluster
Direct program:
Continuum of Care Program
Pass -through program from:
Iowa Economic Development Authority
CDBG - Disaster Recovery Grants - Pub. L. No. 113-2 Cluster
National Resiliency Disaster Recovery Corporation
Direct program:
Section 8 Project -Based Cluster
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
Section 8 Housing Choice Vouchers
COVID-19 Section 8 Housing Choice Vouchers
Section 8 Housing Choice Vouchers VASH
Total Housing Voucher Cluster
Family Sufficiency Program
Lead -Based Paint Hazard Control in Privately -Owned Housing
Lead Hazard Reduction Demonstration Grant
Healthy Homes Production Program
Older Adults Hoe Modification Grant Program
Total U.S. Department of Housing and Urban Development
Pass -Through
Assistance Entity
Listing Identifying
Number Number
10.902
10.912
10.924
14.218
14.218
14.218
14.218
14.218
14.218 B-21-MC-19-0004
14.267
14.272
14.856
14.871
14.871
14.871
14.871
14.896
14.900
14.905
14.913
14.921
B-1 3-DS-1 9-001
Amounts
Passed -Through
Expenditures to Subrecipients
$ 36,255 $
3,184
4,759
44,198
113,773 -
216,896 120,582
166,414 71,204
540,858 42,312
296,503 -
86,498
1,420,942 234,098
90,583
1,198,453
64,661
688,880
5,696,558
179,076
5,309
6,569,823
104,063
955,923
78,859
8,095
45,811
10,537,213 234,098
The accompanying notes are an integral part of this Schedule. 198
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards (Continued)
Year Ended June 30, 2022
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U.S. Department of Interior
Direct program:
Outdoor Recreation Acquisition, Development and Planning
Total U.S. Department of Interior
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
Pass -through program from:
Iowa Department of Justice:
Public Safety Partnership and Community Policing Grants
Public Safety Partnership and Community Policing Grants
Direct program:
Edward Byne Memorial Justice Assistance Grant Program
Edward Byne Memorial Justice Assistance Grant Program
Edward Byne Memorial Justice Assistance Grant Program
Total U.S. Department of Justice
U.S. Department of Transportation
Direct program:
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
COVID019 - Airport Improvement Program
Highway Planning and Construction Cluster:
Pass -through program from:
Iowa Department of Transportation
Highway Planning and Construction
Highway Planning and Construction
Total Highway Planning and Construction Cluster
Federal Transit Cluster:
Direct program:
COVID-19 - Federal Transit Formula Grants
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Buses and Bus Facilities Formula and Discretionary Program
Total Federal Transit Cluster
Pass -Through
Assistance Entity Amounts
Listing Identifying Passed -Through
Number Number Expenditures to Subrecipients
15.916 142,211
142,211
16.034 666
16.588
15JOVW-21-GG-00577-STOP
456
16.588
2020-WF-AX-0024
909
1,365
16.710
19-CAM P-05
3,176
16.710
19-COPS-HEROIN-02
2,309
5,485
16.738
12,557
16.738
9,121
16.738
31,650
53,328
60,844
20.106
278,412
20.106
13,780
20.106
5,289
20.106
73,495
20.106
220,715
186,278
777,969
20.205 HDP-2100(679)-71-31
277
20.205 EDP-2100(696)-7Y-31
289,256
289,533
20.507
236,556
20.507
520,575
20.507
1,073,189
1,830,320
20.526 44,122
1,874,442
The accompanying notes are an integral part of this Schedule. 199
City of Dubuque, Iowa
Schedule of Expenditures of Federal Awards (Continued)
Year Ended June 30, 2022
Federal Grantor/Pass-Through
Grantor/Program or Cluster Title
U.S. Department of Transportation (continued)
Transit Services Program Cluster:
Pass -through program from:
Iowa Department of Transportation
Enhanced Mobility of Seniors and Individuals with Disabilities
Highway Safety Cluster:
Pass -through program from:
Iowa Department of Public Safety
State and Community Highway Safety
State and Community Highway Safety
Total Highway Safety Cluster
Total U.S. Department of Transportation
U.S. Department of Transportation
Pass -through program from:
Iowa Department of Revenue
COVID-19 Coronavirus Relief Fund
COVID-19 Coronavirus Relief Fund
Direct or Pass -Through program from:
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Total U.S. Department of the Treasury
National Endowment for the Arts
Pass -through program from:
Iowa Department of Revenue
COVID-19 - Promotion of the Arts Partnership Agreements
Total National Endowment for the Arts
Small Business Administration
Pass -through program from:
Iowa Department of Revenue
Shuttered Venue Operators Grant
Total Small Business Administration
Environmental Protection Agencv
Direct program:
Brownsfields Assessment and Cleanup Cooperative Agreements
Brownsfields Assessment and Cleanup Cooperative Agreements
Brownsfields Assessment and Cleanup Cooperative Agreements
Total Environmental Protection Agency
U.S. Department of Health and Human Services
Pass -through program from:
Dubuque County Health Department
Food and Drug Administration Research
Food and Drug Administration Research
Direct or Pass -Through program from:
HRSA COVID-19 - Claims Reimbursements for the Uninsured
Program and the COVID-19 Coverage Assistance Fund
Total U.S. Department of Health and Human Services
Assistance
Listing
Number
Pass -Through
Entity
Identifying
Number
20.513
2020-001-00-DFY21
20.600
PAP 21-402-MOAL
20.600
PAP 22-402-MOPT
21.019
21.019
21.027
45.025
CRF 009J
202210-11356
202210-11173
Amounts
Passed -Through
Expenditures to Subrecipients
120,091
1,572
5,114
6,686
3,068,721
20,664
15,000
35,664
2,998,902
3,034,566
218
218
59.075 SBAHQ21SVO14578 362,080
362,080
66.818 3,221
66.818 7,112
66.818 123,194
133,527
93.103 G-MP-2108-09662 1,049
93.103 GR-OATR-202110-01233 1,494
2,543
93.461 160
2,703
The accompanying notes are an integral part of this Schedule. 200
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2022
Pass -Through
Assistance
Entity
Amounts
Federal Grantor/Pass-Through
Listing
Identifying
Passed -Through
Grantor/Program or Cluster Title
Number
Number
Expenditures
to Subrecipients
Corporation for National and Community Service
Pass -through program from:
Iowa Commission on Volunteers
AmeriCorps State and National
94.006
20-AC-10
21,231
AmeriCorps State and National
94.006
20-AF-05
5,553
AmeriCorps State and National
94.006
21-AC-10
146,501
AmeriCorps State and National
94.006
21-AC-05
80,063
AmeriCorps State and National
94.006
253,348
AmeriCorps Volunteer Generation Fund
94.021
21-VGF-12
12,503
AmeriCorps Volunteer Generation Fund
94.021
21-VGF-12
12,494
24,997
Total Corporation for National and Community Service
278,345
U.S. Department of Homeland Security
Direct program:
COVID-19 - Disaster Grants - Public Assistance (Presidentially
Declared Disasters)
97.036
66,635
Total U.S. Department of Homeland Security
66,635
Total
17,731,261
234,098
The accompanying notes are an integral part of this Schedule. 201
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2022
Note 1. Basis of Presentation
The accompanying schedule of expenditures of federal awards (the Schedule) includes the federal
award activity of City of Dubuque, Iowa (the City) under programs of the federal government for the
year ended June 30, 2022. The information in this Schedule 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 or cash flows of the City.
Note 2. Summary of Significant Accounting Policies
The City's summary of significant accounting policies is presented in note 1 to the City's basic
financial statements for the year ended June 30, 2022. Governmental and proprietary funds account
for the City's federal grant activity. Expenditures reported on the Schedule are reported on either the
modified accrual basis of accounting or accrual basis of accounting, depending on the basis of
accounting used by the respective fund for which the activity is reported. Such expenditures are
recognized following, as applicable, the cost principles in OMB-87, Cost Principles for State, Local
and Indian Tribal Governments, the cost principles contained in the Uniform Guidance, or other
applicable regulatory guidance, wherein certain types of expenditures are not allowable or are limited
as to reimbursement. Therefore, some amounts presented in the schedule may differ from amounts
presented in, or used in the preparation of, the basic financial statements or report to federal agencies.
Negative amounts shown on the Schedule represent adjustments or credits made in the normal course
of business to amounts reported as expenditures in prior periods. 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 elected not to use the 10 percent de minimis indirect cost rate allowed under the
Uniform Guidance.
202
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2022
Section 1 - Summary of Auditor's Results
Financial Statements
1. The type of report the auditor issued on whether the financial statements audited were prepared in
accordance with GAAP:
® Unmodified ❑ Qualified ❑ Adverse ❑ Disclaimer
2. Internal control over financial reporting:
Significant deficiency(ies) identified? ❑ Yes ® None reported
Material weakness(es) identified? ® Yes ❑ No
3. Noncompliance material to the financial statements noted?
❑ Yes ® No
Federal Awards
4. Internal control over major federal awards programs:
Significant deficiency(ies)? ❑ Yes ® None reported
Material weakness(es)? ❑ Yes ® No
5. Type of auditor's report issued on compliance for major federal programs:
® Unmodified ❑ Qualified ❑ Adverse ❑ Disclaimer
6. Any audit finding disclosed that are required to be reported by 2
CFR 200.516(a)? ❑ Yes ® No
203
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Identification of major federal programs:
Assitance
Listing Number Name of Federal Program or Cluster
Housing Voucher Cluster
Federal Transit Cluster
20.106 Airport Improvement Program
21.027 Coronavirus State and Local Fiscal Recovery Funds
Dollar threshold used to distinguish between Type A and Type B programs: $750,000.
Auditee qualified as a low -risk auditee? ❑ Yes ® No
204
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Section II - Financial Statement Findings
Reference
Number Finding
2022-01 Finding: Restatement of Prior Year Financial Statements
Criteria or Specific Requirement: Management is responsible for establishing and maintaining effective
internal controls over financial reporting. Effective internal controls are an important component of a system that
helps ensure transactions are recorded timely and in the proper reporting period, thereby providing accurate
financial data. Specifically, the City should have controls in place to ensure transactions are recorded in
accordance with applicable accounting standards/guidance.
Condition: The following issues were noted during the 2022 audit, causing the prior period's statements to be
restated:
a) GASB Statement No. 9 (GASB 9), Reporting Cash Flows of Proprietary and Nonexpendable Trust Funds
and Governmental Entities That Use Proprietary Fund Accounting requires that the cash flow statement focus
and explain the change of cash and cash equivalents. GASB 9 defines cash equivalents as short-term, highly
liquid investments that are both readily convertible to known amounts of cash and so near their maturity they
present insignificant risk of changes in value due to changes in interest rates. GASB 9 clarifies that investments
with original maturities of three months or less meet the definition of a cash and cash equivalent. The City's cash
flow statements reconciled to cash and investments which included certain investments not meeting its accounting
policy definition of cash and cash equivalents as provided for by GASB 9.
b) GASB Statement No. 84 (GASB 84), Fiduciary Activities changed the definition, criteria and reporting of
fiduciary activities as well as redefined various fiduciary fund types and changed fund type terminology. The
Cable Equipment Fund, previously a custodial fund, did not meet the definition of a fiduciary activity outlined in
GASB 84 as the funds can be used for City purposes under Iowa Code Section 477A7.4.
c) Police and fire injury claims were incorrectly charged to the Workers' Compensation Reserve Fund instead of
the General Fund as required by Iowa State Code.
Effect: The conditions above had the following effects:
a) During 2022, the City corrected beginning cash and cash equivalents at July 1, 2021 to exclude investments not
meeting its cash equivalents definition. This change resulted in a restatement of beginning cash and cash
equivalents reported in the cash flow statement by $2.6 million.
b) During 2022, the City corrected the fixed type to General Fund. This change resulted in a restatement of
beginning net position/fund balance of $1.1 million.
c) During 2022, the City corrected the payments to record them in the General Fund. This change resulted in a
restatement of beginning net position/fund balance of $973 thousand.
Causes:
a) The City pools its cash and investments and reports them on a combined basis in the statement of net position.
Management utilized the combined cash and investment amount to prepare the cash flow statement and therefore,
investments not meeting the City's accounting policy definition of cash and cash equivalents were improperly
included as a cash equivalent in the cash flow statement.
b) The City had overlooked the section of the Iowa Code providing for use of the funds for City purposes.
c) The City experienced a change in personnel who were not aware of the requirements and changed the
transaction coding process.
Recommendation: We recommend that the City strengthens controls over the application of accounting
standards to ensure transactions are recorded in compliance with existing guidance and the Iowa State Code.
Views of Responsible Officials: The City agrees with the finding. See separate report for planned corrective
actions.
205
City of Dubuque, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2022
Section III — Federal Award Findings and Questioned Costs
Reference
Number Finding
No matters are reportable
206
City of Dubuque, Iowa
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2022
Reference Finding Status
Number
Significant Audit Adjustments - During the
course of the engagement, the predecessor
auditor proposed significant audit
2021-001 adjustments to intergovernmental
receivables, unavailable revenues, and the
schedule of expenditures of federal awards
It was recommended the City increase
review procedures over intergovernmental
receivables, unavailable revenues, and the
schedule of expenditures of federal awards. Implemented
207
City of Dubuque, Iowa
Other Findings Related to Required Statutory Reporting
Year Ended June 30, 2021
Reference
Number Finding
2022-IA-A Certified Budget - Disbursements during the year ended June 30, 2022 did not exceed t e
amount budgeted as per Chapter 384.20 of the Code of Iowa states, in part, "Public monies
may not be expended or encumbered except under and annual or continuing
appropriation."
2022-IA-B Questionable Expenditures - We noted no expenditures that we believe may fail to meet
the requirements of public purpose as defined in an Attorney General's opinion dated April
25. 1979.
2022-IA-C Travel Expenses - No expenditures of City money for travel expenses of spouses of City
officials or employees were noted.
2022-IA-D Business Transactions - Business transactions between the City and City Officials or
employees are detailed as follows:
According to Chapter 362.5 of the Code of Iowa, an officer or employee of the City shall not
have an interest, direct or indirect, in a contract with that City. The provision does not apply
to transactions that do not exceed a cumulative total purchase price of $1,500 in a fiscal
year or to contracts made by a City upon competitive bid. All transactions were not entered
into through competitive bidding.
2022-IA-E Restricted Donor Activity - No transactions were noted between the City, City officials, City
employees and restricted donors in compliance with Chapter 68B of the Code of Iowa.
2022-IA-F Bond Coverage - Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to ensure that
the coverage is adequate for current operations.
20221A-G City Council Minutes - No transactions were found that we believe should have been
approved in the City Council minutes but were not.
2022-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 oolicv were noted.
2022-IA-I
Revenue Notes - No instances of non-compliance with revenue note provisions were noted.
208
City of Dubuque, Iowa
Other Findings Related to Required Statutory Reporting (Continued)
Year Ended June 30, 2022
Reference
Number Finding
2022-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.
2022-IA-K Separately Maintained Records - Chapter 384.20 of the Code of Iowa states, in part,
"A city shall keep accounts which show an accurate and detailed statement of all public
funds collected, received, or expended for any city purpose, by any city officer,
employee, or other person, and which show the receipt, use, and disposition of all city
property." No such transactions were noted.
2022-IA-L Financial Condition - At June 30, 2022, the City had one fund that had a deficit balance.
General Service Fund $(223,643)
2022-IA-M Solid Water Tonnage Fees Retained - No instances of non-compliance with the solid waste
fees used or retained in accordance with provisions of Chapter 4556.310 of the Code of
Iowa by the Dubuque Metropolitan Area Solid Waste Agency, a component of the City,
were noted.
2022-IA-N 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.
209
FORWS
Report to the Honorable
Mayor, City Council, and
Members of Management
City of Dubuque, Iowa
Results of the 2022 Financial Statement
Audit, Including Required Communications
West Des Moines, Iowa
June 30, 2022
FORVIS is atradema rk of FORVI3, LL P, registration of which is pending with the U.S. Patent and Trademark Office
www.forvis.com
Required Communications Regarding Our Audit Strategy 8
Approach (AU-C 260)
The following matters are required communications we must make to you, including these responsibilities:
overview & Responsibilities
Matter Discussion
Scope of Our This report covers audit results related to your financial statements and supplementary
Audit information:
• As of and for the year ended June 30, 2022
• Conducted in accordance with our contract dated August 2, 2022
Our FORVIS is responsible for forming and expressing an opinion about whether the financial
Responsibilities statements that have been prepared by management, with the oversight of those charged
with governance, are prepared in accordance with accounting principles generally accepted in
the United States of America (GAAP).
Audit Scope &
Inherent
Limitations to
Reasonable
Assurance
FORWS
An audit performed in accordance with auditing standards generally accepted in the United
States of America (GAAS) is designed to obtain reasonable, rather than absolute, assurance
about the financial statements and about whether noncompliance with the types of
compliance requirements described in OMB Uniform Guidance that could have a direct and
material effect on a major federal award program occurred. The scope of our audit tests was
City of Dubuque, Iowa
2
June 6, 2023
Matter
Extent of Our
Communication
Independence
Discussion
established in relation to the financial statements taken as a whole and did not include a
detailed audit of all transactions.
In addition to areas of interest and noting prior communications made during other phases of
the engagement, this report includes communications required in accordance with GAAS that
are relevant to the responsibilities of those charged with governance in overseeing the
financial reporting process, including audit approach, results, and internal control. The
standards do not require the auditor to design procedures for the purpose of identifying other
matters to be communicated with those charged with governance.
The engagement team, others in our firm, as appropriate, and our firm, have complied with all
relevant ethical requirements regarding independence.
Your Our audit does not relieve management or those charged with governance of your
Responsibilities 1 responsibilities. Your responsibilities and ours are further referenced in our contract.
Distribution
Restriction
FORWS
This communication is intended solely for the information and use of the following and is not
intended to be, and should not be, used by anyone other than these specified parties:
• Budget Committee
• Members of City Council
• Others within the City
• Federal awarding agencies and other pass -through award agencies
City of Dubuque, Iowa 3 June 6, 2023
Group Audits
Referred -To Auditors
Our audit strategy included the use of the work of a referred -to auditor, resulting in a division of responsibility over
the group financial statements and our report thereon.
We did not audit the financial statements of Dubuque Initiatives and Subsidiaries and Dubuque Convention and
Visitors Bureau, 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 and Dubuque Convention and Visitors
Bureau, is based solely on the report of the other auditors. We have had communications with the other auditors
during planning and throughout the audit regarding their qualifications to perform the audit, including independence,
and consideration of materiality as a basis for referring to their audit report. Professional standards require that we
provide you with information about our responsibilities in accordance with GAAS, as well as certain information
related to the planned scope and timing of our audit.
FORWS
City of Dubuque, Iowa 4 June 6, 2023
OMB Uniform Guidance Overview & Responsibilities
Matter Discussion
Scope of Our We also provided reports as of June 30, 2022, on the following as required by GAS and OMB
Audit Uniform Guidance:
• Internal control over financial reporting and on compliance and other matters based on
an audit of the financial statements performed in accordance with GAS
• Compliance for each major federal award program
• Internal control over compliance in accordance with OMB Uniform Guidance
Reporting on Our audit also included reporting on the following:
Major Federal Schedule of federal awards
Award Programs
• Schedule of findings and questioned costs
• Data collection form
FORWS
City of Dubuque, Iowa 5 June 6, 2023
Other Information Accompanying the Audited Financial Statements
The audited financial statements are presented along with management's comprehensive annual financial report
(ACFR). Management, or those charged with governance, is responsible for preparing the ACFR.
We were not engaged to audit the information contained in the ACFR, and as a result, our opinion does not provide
assurance as to the completeness and accuracy of the information contained therein.
As part of our procedures, we read the entire report to determine if financial information discussed in sections
outside the financial statements materially contradicts the audited financial statements. If we identify any such
matters, we bring them to management's attention and review subsequent revisions.
FORWS
City of Dubuque, Iowa 6 June 6, 2023
Auditor Objectives Related to Other Information
Our objectives related to the other information accompanying the audited financial statements were to:
• Consider whether a material inconsistency exists between the other information and the financial statements
• Remain alert for indications that:
o A material inconsistency exists between the other information and the auditor's knowledge obtained in
the audit, or
o A material misstatement of fact exists or the other information is otherwise misleading
• Respond appropriately when we identify that such material inconsistencies appear to exist or when we
otherwise become aware that other information appears to be materially misstated. Potential responsive
actions would include requesting management to correct the identified inconsistency
FORWS
City of Dubuque, Iowa 7 June 6, 2023
Qualitative Aspects of Significant Accounting Policies & Practices
The following matters are detailed in the following pages and included in our assessment:
Significant Accounting Policies
Significant accounting policies are described in Note 1 of the audited financial statements.
With respect to new accounting standards adopted during the year, we call to your attention the following topics
detailed in the following pages:
• GASB 87, Leases
Unusual Policies or Methods
With respect to significant unusual accounting policies or accounting methods used for significant unusual
transactions (significant transactions outside the normal course of business or that otherwise appear to be unusual
due to their timing, size, or nature), we noted the following:
• No matters are reportable
Alternative Accounting Treatments
We had discussions with management regarding alternative accounting treatments within GAAP for policies and
practices for material items, including recognition, measurement, and disclosure considerations related to the
accounting for specific transactions as well as general accounting policies, as follows:
• The City presents budgetary information as allowed by GASB Statement No. 41.
FORWS
City of Dubuque, Iowa 8 June 6, 2023
Management Judgments & Accounting Estimates
Accounting estimates are an integral part of financial statement preparation by management, based on its
judgments. Significant areas of such estimates for which we are prepared to discuss management's estimation
process and our procedures for testing the reasonableness of those estimates include:
• Depreciation of capital assets
• Estimated property tax collections
• Actuarial assumptions in the calculation of the net pension liability and related deferred outflows and inflows
• Actuarial assumptions in the calculation of the other post -employment benefit (OPEB) and related deferred
outflows and inflows
• Valuation of investments
• Valuation of lease receivables and lease liabilities
FORWS
City of Dubuque, Iowa 9 June 6, 2023
Financial Statement Disclosures
The following areas involve particularly sensitive financial statement disclosures for which we are prepared to
discuss the issues involved and related judgments made in formulating those disclosures:
• Footnote 7 — Long -Term Liabilities
• Footnote 12 — Landfill Closure and Post -Closure Care
• Footnote 18 — Restatement
Our Judgment About the Quality of the City's Accounting Principles
During the course of the audit, we made the following observations regarding the City's application of accounting
principles:
• No matters are reportable
FORWS
City of Dubuque, Iowa 10 June 6, 2023
GASB 87, Leases
Effective July 1, 2021, the City adopted GASB 87, Leases. GASB 87 creates one model for recognizing leases for
both lessees and lessors. Substantially all leases are recognized on the lessee's statement of net position.
In the activity statement, lessees no longer report rent expense for the previously classified operating leases but
instead report interest expense on the liability and amortization expense related to the asset. Lessors recognize a
lease receivable and corresponding deferred inflow of resources. Interest income associated with the receivable are
recognized using the effective interest method.
Adoption of GASB 87 required significant time to identify a complete list of lease contracts for consideration of
adoption and measure the lease assets and liabilities for recognition. In addition, due to adoption of the standard,
the City's key performance indicators related to the statement of net position (such as the current ratio) are likely not
comparable to historical results.
FORWS
City of Dubuque, Iowa 11 June 6, 2023
Adjustments Identified by Audit
During the course of any audit, an auditor may propose adjustments to financial statement amounts. Management
evaluates our proposals and records those adjustments that, in its judgment, are required to prevent the financial
statements from being materially misstated.
A misstatement is a difference between the amount, classification, presentation, or disclosure of a reported financial
statement item and that which is required for the item to be presented fairly in accordance with the applicable
financial reporting framework.
Proposed & Recorded Adjustments
Auditor -proposed and management -recorded entries include the following:
• Correction of beginning cash and cash equivalents on the Statement of Cash Flows for business -type activity
funds
• Correction of work compensation activity between general fund and reserve
• Correction of beginning Cable TV PEG Fund balances from fiduciary type to general fund
Uncorrected Misstatements
Some adjustments proposed were not recorded because their aggregate effect is not currently material; however,
they involve areas in which adjustments in the future could be material, individually or in the aggregate.
Uncorrected audit misstatements pertaining to the latest period presented that were determined by management to
be immaterial, both individually and in the aggregate, but more than trivial to the financial statements as a whole are
included as an attachment to this communication.
FORWS
City of Dubuque, Iowa 12 June 6, 2023
While these uncorrected misstatements were deemed to be immaterial to the current -year financial statements, it is
possible that the impact of these uncorrected misstatements, or matters underlying these uncorrected
misstatements, could potentially cause future -period financial statements to be materially misstated.
Nature of Uncorrected Misstatements
• Lease receivable and deferred inflows for certain leases
FORWS
City of Dubuque, Iowa 13 June 6, 2023
Other Required Communications
Consultation with Other Accountants
During our audit, we became aware that management had consulted with other accountants about the following
auditing or accounting matters:
• Adoption of GASB Statement No. 87, Leases
Other Material Communications
Listed below are other material communications between management and us related to the audit:
• Management representation letter (see Attachments)
We orally communicated to management other deficiencies in internal control identified during our audit that are not
considered material weaknesses or significant deficiencies.
FORWS
City of Dubuque, Iowa 14 June 6, 2023
Required Communications Regarding Internal Control (AU-C 265)
Consideration of Internal Control Over Financial Reporting
In planning and performing our audit of the financial statements of City of Dubuque, Iowa as of and for the year
ended June 30, 2022, in accordance with GAAS, we considered the City's internal control over financial reporting
(internal control).
This consideration served as a basis for designing audit procedures that are appropriate in the circumstance for the
purpose of expressing our opinion on the financial statements.
However, this consideration was 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.
Our consideration of internal control was for the limited purpose described in the preceding paragraphs 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 were not identified.
FORWS
City of Dubuque, Iowa
15
June 6, 2023
Categorizing Deficiencies by Severity
Deficiency
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.
000
ttl
�.
000
FORWS
Significant Deficiency
A significant deficiency is a
deficiency, or 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.
Material Weakness
A material weakness is a
deficiency, or a combination of
deficiencies, in internal control,
such that there is a reasonable
possibility that material
misstatements of the City's
financial statements will not be
prevented or detected and
corrected on a timely basis.
City of Dubuque, Iowa 16 June 6, 2023
Identified Deficiencies
We identified certain deficiencies in internal control that we consider to be a material weakness
Material Weaknesses
• Refer to the Independent Auditor's Report on Internal Control Over Financial Reporting Based on an Audit of
the Financial Statements Performed in Accordance with Government Auditing Standards.
FORWS
City of Dubuque, Iowa 17 June 6, 2023
Future Accounting Pronouncements
GASB Statement No. 96, Subscription -Based Information Technology Arrangements
(GASB 96)
The standard defines a subscription -based information technology arrangements (SBITA), establishes that a SBITA
would result in a right -to -use (RTU) asset and a corresponding liability, provides capitalization criteria, and requires
new note disclosures. The statement's language and concepts closely mirror the lease guidance provided in
Statement 87, Leases. This statement requires governments report a subscription asset and subscription liability for
a SBITA and to disclose essential information about the arrangement. The disclosures will allow users to understand
the scale and important aspects of a government's SBITA activities and evaluate a government's obligations and
assets resulting from SBITAs.
The requirements of this Statement are effective for the Agency's June 30, 2023 reporting period. SBITA assets and
liabilities should be recognized and measured using the facts and circumstances at the beginning of the fiscal year
of implementation. Governments are permitted —but not required —to include in the measurement of the subscription
asset capitalizable outlays associated with the initial implementation stage and the operation and additional
implementation stage incurred prior to the implementation.
FORWS
City of Dubuque, Iowa 18 June 6, 2023
GASB Statement No. 100, Accounting Changes and Error Corrections (GASB 100)
GASB 100 updates accounting and financial reporting requirements for accounting changes and error corrections to
address current diversity in practice by amending GASB Statement No. 62. It defines accounting changes as
changes in accounting principles, changes in accounting estimates, and changes to or within the financial reporting
entity and describes the transactions or other events that constitute those changes. For each type of accounting
change and error correction, GASB 100 addresses accounting and reporting requirements, display, including display
in the financial statements, note disclosures, and impact on required supplementary information (RSI) and
supplementary information (SI).
The requirements of GASB 100 are effective for accounting changes and error corrections made in fiscal years
beginning after June 15, 2023, and all reporting periods thereafter. Earlier application is encouraged.
GASB Statement No. 101, Compensated Absences (GASB 101)
GASB 101 updates the recognition and measurement guidance for compensated absences under a unified model. It
defines compensated absences and requires that liabilities be recognized in financial statements prepared using the
economic resources measurement focus for leave that has not been used and leave that has been used but not yet
paid or settled. A liability for compensated absences should be accounted for and reported on a basis consistent
with governmental fund accounting principles for financial statements prepared using the current financial resources
measurement focus. GASB 101 amends the existing requirement to disclose the gross increases and decreases in
a liability for compensated absences to allow governments to disclose only the net change in the liability (as long as
they identify it as a net change). In addition, governments are no longer required to disclose which governmental
funds typically have been used to liquidate the liability for compensated absences.
FORWS
City of Dubuque, Iowa 19 June 6, 2023
The requirements of GASB 101 are effective for fiscal years beginning after December 15, 2023, and all reporting
periods thereafter. Earlier application is encouraged. The changes adopted at transition to conform to the provisions
of GASB 101, should be reported as a change in accounting principle in accordance with Statement No.
100, Accounting Changes and Error Corrections, including the related display and disclosure requirements.
FORWS
City of Dubuque, Iowa
20
June 6, 2023
Attachments
Management Representation Letter
As a material communication with management, included herein is a copy of the representation letter provided by
management at the conclusion of our engagement.
FORWS
City of Dubuque, Iowa 21 June 6, 2023
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
Representation of. -
City of Dubuque
50 West 13th Street
Dubuque, IA 52001
Provided to:
FORVIS, LLP
Certified Public Accountants
1401 501h Street, Suite 350
West Des Moines, Iowa 50266
The undersigned ("We") are providing this letter in connection with FORVIS' audit of our financial
statements as of and for the year ended June 30, 2022.
We are also providing this letter in connection with:
• Your audit of our compliance with requirements applicable to each of our major federal awards
programs as of and for the year ended June 30, 2022.
Our representations are current and effective as of the date of FORVIS' report: June 6, 2023.
Our engagement with FORVIS is based on our contract for services dated: August 2, 2022.
Our Responsibility & Consideration of Material Matters
We confirm that we are responsible for the fair presentation of the financial statements subject to FORVIS'
report in conformity with accounting principles generally accepted in the United States of America.
We are also responsible for adopting sound accounting policies; establishing and maintaining effective
internal control over financial reporting, operations, and compliance; and preventing and detecting fraud.
Certain representations in this letter are described as being limited to matters that are material. Items are
considered material, regardless of size, if they involve an omission or misstatement of accounting
information that, in light of surrounding circumstances, makes it probable that the judgment of a reasonable
person relying on the information would be changed or influenced by the omission or misstatement. An
omission or misstatement that is monetarily small in amount could be considered material as a result of
qualitative factors.
Confirmation of Matters Specific to the Subject Matter of FORVIS' Report
We confirm, to the best of our knowledge and belief, the following:
Broad Matters
We have fulfilled our responsibilities, as set out in the terms of our contract, for the preparation
and fair presentation of the financial statements in accordance with accounting principles generally
accepted in the United States of America.
2. We acknowledge our responsibility for the design, implementation, and maintenance of:
a. Internal control relevant to the preparation and fair presentation of financial statements
that are free from material misstatement, whether due to fraud or error.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 2
b. Internal control to prevent and detect fraud.
3. We have provided you with:
a. Access to all information of which we are aware that is relevant to the preparation and fair
presentation of the financial statements, such as financial records and related data,
documentation, and other matters.
b. Additional information that you have requested from us for the purpose of the audit.
c. Unrestricted access to persons within the entity from whom you determined it necessary
to obtain audit evidence.
d. All minutes of City Council meetings held through the date of this letter or summaries of
actions of recent meetings for which minutes have not yet been prepared. All unsigned
copies of minutes provided to you are copies of our original minutes approved by the City
Council, if applicable, and maintained as part of our records.
e. All significant contracts and grants.
4. We have responded fully and truthfully to all your inquiries.
Government Auditing Standards
5. We acknowledge that we are responsible for compliance with applicable laws, regulations, and
provisions of contracts and grant agreements.
6. We have identified and disclosed to you all laws, regulations, and provisions of contracts and grant
agreements that have a direct and material effect on the determination of amounts in our financial
statements or other financial data significant to the audit objectives.
7. We have identified and disclosed to you any violations or possible violations of laws, regulations,
including those pertaining to adopting, approving, and amending budgets, and provisions of
contracts and grant agreements, tax or debt limits, and any related debt covenants whose effects
should be considered for recognition and/or disclosure in the financial statements or for your
reporting on noncompliance.
8. We have taken or will take timely and appropriate steps to remedy any fraud, abuse, illegal acts,
or violations of provisions of contracts or grant agreements that you or other auditors report.
9. We have a process to track the status of audit findings and recommendations.
10. We have identified to you any previous financial audits, attestation engagements, performance
audits, or other studies related to the objectives of your audit and the corrective actions taken to
address any significant findings and recommendations made in such audits, attestation
engagements, or other studies.
11. We have provided our views on any findings, conclusions, and recommendations, as well as our
planned corrective actions with respect thereto, to you for inclusion in the findings and
recommendations referred to in your report on internal control over financial reporting and on
compliance and other matters based on your audit of the financial statements performed in
accordance with Government Auditing Standards.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 3
Federal Awards Programs (Uniform Guidance)
12. We have identified in the schedule of expenditures of federal awards all assistance provided (either
directly or passed through other entities) by federal agencies in the form of grants, contracts, loans,
loan guarantees, property, cooperative agreements, interest subsidies, commodities, insurance,
direct appropriations, or in any other form.
13. We have disclosed to you all contracts or other agreements with service organizations, and we
have disclosed to you all communications from the service organizations relating to
noncompliance at the service organizations.
14. We have reconciled the schedule of expenditures of federal awards (SEFA) to the financial
statements.
15. Federal awards -related revenues and expenditures are fairly presented, both in form and content,
in accordance with the applicable criteria in the entity's financial statements.
16. We have evaluated all recipient organizations that received federal funding and have correctly
identified all subrecipients on the schedule of expenditures of federal awards.
17. We have identified the types of compliance requirements described in the U.S. Office of
Management and Budget (OMB) Compliance Supplement regarding activities allowed or
unallowed; allowable costs/cost principles; cash management; eligibility; equipment and real
property management; matching, level of effort, earmarking; period of performance of federal
funds; procurement and suspension and debarment; program income; reporting; subrecipient
monitoring; and special tests and provisions that are applicable to each of our federal awards
programs. We have identified to you our interpretation of any applicable compliance requirements
subject to varying interpretations.
18. We are responsible for complying, and have complied, with the requirements of Uniform Guidance.
19. We are responsible to understand and comply with the requirements of federal statutes,
regulations, and the terms and conditions of federal awards related to each of our federal awards
programs and have disclosed to you any and all instances of noncompliance with those
requirements occurring during the period of your audit or subsequent thereto to the date of this
letter of which we are aware. Except for any instances of noncompliance we have disclosed to
you, we believe the entity has complied with all applicable compliance requirements.
20. We are responsible for the design, implementation, and maintenance of internal controls over
compliance that provide reasonable assurance we have administered each of our federal awards
programs in compliance with federal statutes, regulations, and the terms and conditions of the
federal awards.
21. We have made available to you all federal awards (including amendments, if any) and any other
correspondence or documentation relevant to each of our federal awards programs and to our
compliance with applicable requirements of those programs.
22. The information presented in federal awards program financial reports and claims for advances
and reimbursements is supported by the books and records from which our financial statements
have been prepared.
23. The costs charged to federal awards are in accordance with applicable cost principles.
24. The reports provided to you related to federal awards programs are true copies of reports
submitted or electronically transmitted to the federal awarding agency, the applicable payment
system, or pass -through entity in the case of a subrecipient.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 4
25. Amounts claimed or used for matching were determined in accordance with Title 2 U.S. Code of
Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Principles, and
Audit Requirements for Federal Awards (Uniform Guidance) regarding cost principles.
26. We have monitored any subrecipients to determine that they have expended federal awards in
accordance with federal statutes, regulations, and the terms and conditions of the subaward and
have met the audit and other requirements of the Uniform Guidance.
27. We have taken appropriate corrective action on a timely basis after receipt of any subrecipient's
auditor's report that identified findings and questioned costs pertaining to federal awards programs
passed through to the subrecipient by us.
28. We have considered the results of any subrecipient's audits received and made any necessary
adjustments to our books and records.
29. We have disclosed to you any communications from federal awarding agencies and pass -through
entities concerning possible noncompliance with the applicable compliance requirements for each
of our federal awards programs, including any communications received from the end of the period
of your audit through the date of this letter.
30. We have identified to you any previous compliance audits, attestation engagements, and internal
or external monitoring related to the objectives of your compliance audit, including findings
received and corrective actions taken to address any significant findings and recommendations
made in such audits, attestation engagements, or other monitoring.
31. Except as described in the schedule of findings and questioned costs, we are in agreement with
the findings contained therein and our views regarding any disagreements with such findings are
consistent, as of the date of this letter, with the description thereof in that schedule.
32. We are responsible for taking corrective action on any audit findings and have developed a
corrective action plan that meets the requirements of Uniform Guidance.
33. The summary schedule of prior audit findings correctly states the status of all audit findings of the
prior audit's schedule of findings and questioned costs and any uncorrected open findings included
in the prior audit's summary schedule of prior audit findings as of the date of this letter.
34. The reporting package does not contain any protected personally identifiable information.
35. No changes have been made in internal control over compliance or other factors that might
significantly affect internal control, including any corrective action we have taken regarding
significant deficiencies or material weaknesses in internal control over compliance subsequent to
the period covered by the auditor's report.
Misappropriation, Misstatements, & Fraud
36. We have informed you of all current risks of a material amount that are not adequately prevented
or detected by our procedures with respect to:
a. Misappropriation of assets.
b. Misrepresented or misstated assets, deferred outflows of resources, liabilities, deferred
inflows of resources, net position or fund balance.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 5
37. We have no knowledge of fraud or suspected fraud affecting the entity involving:
a. Management or employees who have significant roles in internal control over financial
reporting, or
b. Others when the fraud could have a material effect on the financial statements.
38. We understand that the term "fraud" includes misstatements arising from fraudulent financial
reporting and misstatements arising from misappropriation of assets. Misstatements arising from
fraudulent financial reporting are intentional misstatements, or omissions of amounts or
disclosures in financial statements to deceive financial statement users. Misstatements arising
from misappropriation of assets involve the theft of an entity's assets where the effect of the theft
causes the financial statements not to be presented in conformity with accounting principles
generally accepted in the United States of America.
39. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received
in communications from employees, former employees, customers, or other regulators, citizens,
suppliers, or others.
40. We have assessed the risk that the financial statements may be materially misstated as a result
of fraud and disclosed to you any such risk identified.
Ongoing Operations
41. We acknowledge the current economic volatility presents difficult circumstances and challenges
for our industry. Entities are potentially facing declines in the fair values of investments and other
assets, declines in the volume of business, contributions, constraints on liquidity, difficulty
obtaining financing or bonding, significant credit quality problems, including significant volatility in
the values of real estate and other collateral supporting loans, etc.. We understand the values of
the assets and liabilities recorded in the financial statements could change rapidly, resulting in
material future adjustments to asset values, allowances for accounts and notes receivable, net
realizable value of inventory, etc., that could negatively impact the entity's ability to meetdebt
covenants or maintain sufficient liquidity.
We acknowledge that you have no responsibility for future changes caused by the current
economic environment and the resulting impact on the entity's financial statements. Further,
management and governance are solely responsible for all aspects of managing the entity,
including questioning the quality and valuation of investments, inventory, and other assets,
evaluating assumptions regarding defined benefit pension plan obligations, reviewing allowances
for uncollectible amounts; evaluating capital needs and liquidity plans; etc..
Related Parties
42. We have disclosed to you the identity of all of the entity's related parties and all the related -party
relationships of which we are aware.
In addition, we have disclosed to you all related -party transactions and amounts receivable from
or payable to related parties of which we are aware, including any modifications during the year
that were made to related -party transaction agreements which existed prior to the beginning of the
year under audit, as well as new related -party transaction agreements that were executed during
the year under audit.
Related -party relationships and transactions have been appropriately accounted for and disclosed
in accordance with accounting principles generally accepted in the United States of America.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 6
43. We understand that the term related party refers to:
• Affiliates
• Entities for which investments are accounted for by the equity method
• Trusts for the benefits of employees, such as pension and profit-sharing trusts that are
managed by or under the trusteeship of management
• Principal owners and members of their immediate families
• Management and members of their immediate families
• Any other party with which the entity may deal if one party can significantly influence the
management or operating policies of the other to an extent that one of the transacting
parties might be prevented from fully pursuing its own separate interests.
Another party is also a related party if it can significantly influence the management or operating
policies of the transacting parties or if it has an ownership interest in one of the transacting parties
and can significantly influence the other to an extent that one or more of the transacting parties
might be prevented from fully pursuing its own separate interests.
The term affiliate refers to a party that directly or indirectly controls, or is controlled by, or is under
common control with, the entity.
44. Related -party transaction(s) asserted to or disclosed in the financial statements as arm's length
were conducted on terms equivalent to those prevailing for comparable transactions with unrelated
parties or, in the absence of comparable transactions, terms that would be offered in good faith to
unrelated parties, and support regarding the assertion has been provided.
Litigation, Laws, Rulings, & Regulations
45. We have disclosed to you all known actual or possible litigation and claims whose effects should
be considered when preparing the financial statements. The effects of all known actual or possible
litigation and claims have been accounted for and disclosed in accordance with accounting
principles generally accepted in the United States of America.
46. We have no knowledge of communications, other than those specifically disclosed, from regulatory
agencies, governmental representatives, employees, or others concerning investigations or
allegations of noncompliance with laws and regulations, deficiencies in financial reporting
practices, or other matters that could have a material adverse effect on the financial statements.
47. We have disclosed to you all known instances of violations or noncompliance or possible violations
or suspected noncompliance with laws and regulations whose effects should be considered when
preparing financial statements or as a basis for recording a loss contingency.
48. We have no reason to believe the entity owes any penalties or payments under the Employer
Shared Responsibility Provisions of the Patient Protection and Affordable Care Act nor have we
received any correspondence from the IRS or other agencies indicating such payments may be
due.
49. We have not been designated as a potentially responsible party (PRP or equivalent status) by the
Environmental Protection Agency (EPA) or other cognizant regulatory agency with authority to
enforce environmental laws and regulations.
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City of Dubuque
Page 7
Nonattest Services
50. You have provided nonattest services, including the following, during the period of this
engagement:
• Completing the auditee portion of the Form SF -SAC (Data Collection Form) through the
Federal Audit Clearinghouse
51. With respect to these services:
a. We have designated a qualified management -level individual to be responsible and
accountable for overseeing the nonattest services.
b. We have established and monitored the performance of the nonattest services to ensure
they meet our objectives.
c. We have made any and all decisions involving management functions with respect to the
nonattest services and accept full responsibility for such decisions.
d. We have evaluated the adequacy of the services performed and any findings that resulted.
e. Established and maintained internal controls, including monitoring ongoing activities.
f. We have received the deliverables from you and have stored these deliverables in
information systems controlled by us. We have taken responsibility for maintaining internal
control over these deliverables.
Financial Statements & Reports
52. The entity has restated the beginning net position/fund balance and business type activities cash
and cash equivalents to conform with accounting principles generally accepted in the United
States of America. Management has provided you with all relevant information regarding the
restatement. We are not aware of any other known matters that required correction in the financial
statements.
53. With regard to supplementary information:
a. We acknowledge our responsibility for the presentation of the supplementary information
in accordance with the applicable criteria.
b. We believe the supplementary information is fairly presented, both in form and content, in
accordance with the applicable criteria.
c. The methods of measurement and presentation of the supplementary information are
unchanged from those used in the prior period, and we have disclosed to you any
significant assumptions or interpretations underlying the measurement and presentation
of the supplementary information.
d. We believe the significant assumptions or interpretations underlying the measurement
and/or presentation of the supplementary information are reasonable and appropriate.
54. With regard to other information that is presented in the form of our annual comprehensive financial
report (ACFR):
a. We confirm that the ACFR comprises the annual report for the entity.
b. We have provided you with the final draft of the ACFR.
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City of Dubuque
Page 8
Transactions, Records, & Adjustments
55. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
56. We have everything we need to keep our books and records.
57. We have disclosed any significant unusual transactions the entity has entered into during the
period, including the nature, terms, and business purpose of those transactions.
58. We believe the effects of the uncorrected financial statement misstatements and omitted
disclosures summarized in the attached schedule and aggregated by you during the current
engagement are immaterial, both individually and in the aggregate, to the financial statements
taken as a whole.
We understand that, depending on both the nature of the uncorrected misstatement[s] and the
federal and state income tax rules applicable thereto, each uncorrected misstatement may or may
not be taken into account for purposes of determining our federal and/or state taxable income and
any income tax liability for the current year.
Governmental Accounting & Disclosure Matters
59. Interfund, internal, and intra-entity activity and balances have been appropriately classified and
reported.
60. With regard to deposit and investment activities:
a. All deposit, repurchase and reverse repurchase agreements, and investment transactions
have been made in accordance with legal and contractual requirements.
b. Investments, derivative instrument transactions, and land and other real estate held by
endowments are properly valued.
c. Disclosures of deposit and investment balances and risks in the financial statements are
consistent with our understanding of the applicable laws regarding enforceability of any
pledges of collateral.
d. We understand that your audit does not represent an opinion regarding the enforceability
of any collateral pledges.
61. The financial statements include all component units, appropriately present majority equity
interests in legally separate organizations and joint ventures with an equity interest, and properly
disclose all other joint ventures and other related organizations.
62. We have identified and evaluated all potential fiduciary activities. The financial statements include
all fiduciary activities required by GASB Statement No. 84, Fiduciary Activities, as amended.
63. Components of net position (net investment in capital assets, restricted, and unrestricted) and
classifications of fund balance (nonspendable, restricted, committed, assigned, and unassigned)
are properly classified and, if applicable, approved.
64. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported,
and, if applicable, depreciated or amortized.
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City of Dubuque
Page 9
65. We have appropriately disclosed the entity's policy regarding whether to first apply restricted or
unrestricted resources when an expense is incurred for purposes for which both restricted and
unrestricted net position/fund balance is available and have determined that net position is
properly recognized under the policy.
66. The entity has properly separated information in debt disclosures related to direct borrowings and
direct placements of debt from other debt and disclosed any unused lines of credit, collateral
pledged to secure debt, terms in debt agreements related to significant default or termination
events with finance -related consequences, and significant subjective acceleration clauses in
accordance with GASB Statement No. 88.
67. We have identified and evaluated all potential tax abatements, and we believe there are no
material tax abatements other than those that have been disclosed in the notes to the financial
statements.
68. The entity's ability to continue as a going concern was evaluated and that appropriate disclosures
are made in the financial statements as necessary under GASB requirements.
69. The supplementary information required by the Governmental Accounting Standards Board,
consisting of management's discussion and analysis, budgetary comparisons, pension, and other
postemployment benefit information, has been prepared and is measured and presented in
conformity with the applicable GASB pronouncements, and we acknowledge our responsibility for
the information. The information contained therein is based on all facts, decisions, and conditions
currently known to us and is measured using the same methods and assumptions as were used
in the preparation of the financial statements. We believe the significant assumptions underlying
the measurement and/or presentation of the information are reasonable and appropriate. There
has been no change from the preceding period in the methods of measurement and presentation.
70. With regard to pension and other postretirement benefits (OPEB):
a. We believe that the actuarial assumptions and methods used to measure pension and
OPEB liabilities and costs for financial accounting purposes are appropriate in the
circumstances.
b. We have provided you with the entity's most current pension and OPEB plan instrument
for the audit period, including all plan amendments.
c. The participant data provided to you related to pension and OPEB plans are true copies
of the data submitted or electronically transmitted to the plan's actuary.
d. The participant data that we provided the plan's actuary for the purposes of determining
the actuarial present value of accumulated plan benefits and other actuarially determined
amounts in the financial statements were complete.
General Government Matters
71. The financial statements properly classify all funds and activities in accordance with GASB
Statement No.54, Fund Balance Reporting and Governmental Fund Type Definitions, as
amended.
72. All funds that meet the quantitative criteria in GASB Statement No.34, Basic Financial
Statements —and Management's Discussion and Analysis —for State and Local Governments, as
amended, and No.37, Basic Financial Statements —and Management's Discussion and
Analysis —for State and Local Governments: Omnibus —an amendment of GASB Statements
No. 21 and No. 34, for presentation as major are identified and presented as such and all other
funds that are presented as major are particularly important to financial statement users.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 10
73. Expenses have been appropriately classified in or allocated to functions and programs in the
statement of activities, and allocations have been made on a reasonable basis.
74. Revenues are appropriately classified in the statement of activities within program revenues,
general revenues, contributions to term or permanent endowments, or contributions to permanent
fund principal.
75. We have appropriately disclosed that the entity is following either its established accounting policy
regarding which governmental fund resources (that is, restricted, committed, assigned, or
unassigned) are considered to be spent first for expenditures for which more than one resource
classification is available or is following paragraph 18 of GASB Statement No. 54 to determine the
fund balance classifications for financial reporting purposes and have determined that fund
balance is properly recognized under the policy.
76. We have exercised due care in the preparation of the introductory and statistical sections included
in our annual comprehensive financial report (ACFR) and are not aware of any information
contained therein that is inconsistent with the information contained in our basic financial
statements.
Accounting & Disclosure
77. All transactions entered into by the entity are final. We are not aware of any unrecorded
transactions, side agreements, or other arrangements (either written or oral) that are in place.
78. Except as reflected in the financial statements, there are no:
a. Plans or intentions that may materially affect carrying values or classifications of assets,
deferred outflows of resources, liabilities, deferred inflows of resources, net position, or
fund balance.
b. Material transactions omitted or improperly recorded in the financial records.
c. Material unasserted claims or assessments that are probable of assertion or other
gain/loss contingencies requiring accrual or disclosure, including those arising from
environmental remediation obligations.
d. Events occurring subsequent to the balance sheet/statement of net position date through
the date of this letter, which is the date the financial statements were available to be
issued, requiring adjustment or disclosure in the financial statements.
e. Agreements to purchase assets previously sold.
f. Arrangements with financial institutions involving compensating balances or other
arrangements involving restrictions on cash balances, lines of credit, or similar
arrangements.
g. Guarantees, whether written or oral, under which the entity is contingently liable.
h. Known or anticipated asset retirement obligations.
79. Except as disclosed in the financial statements, the entity has:
a. Satisfactory title to all recorded assets, and those assets are not subject to any liens,
pledges, or other encumbrances.
b. Complied with all aspects of contractual and grant agreements, for which noncompliance
would materially affect the financial statements.
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City of Dubuque
Page 11
80. We agree with the findings of specialists in evaluating the pension and OPEB liabilities, arbitrage
calculations, and post -closure costs and have adequately considered the qualification of the
specialists in determining the amounts and disclosures used in the financial statements and
underlying accounting records. We did not give or cause any instructions to be given to the
specialists with respect to the values or amounts derived in an attempt to bias their work, and we
are not otherwise aware of any matters that have had impact on the independence or objectivity
of the specialists.
Revenue, Accounts Receivable, & Inventory
81. Adequate provisions and allowances have been accrued for any material losses from:
a. Uncollectible receivables.
b. Excess or obsolete inventories.
c. Sales commitments, including those unable to be fulfilled.
d. Purchase commitments in excess of normal requirements or at prices in excess of
prevailing market prices.
Estimates
82. We have identified all accounting estimates that could be material to the financial statements, and
we confirm the appropriateness of the methods and the consistency in their application, the
accuracy and completeness of data, and the reasonableness of significant assumptions used by
us in making the accounting estimates, including those measured at fair value reported in the
financial statements.
83. Significant estimates that may be subject to a material change in the near term have been properly
disclosed in the financial statements. We understand that "near term" means the period within one
year of the date of the financial statements. In addition, we have no knowledge of concentrations,
which refer to volumes of business, revenues, available sources of supply, or markets, , existing
at the date of the financial statements that would make the entity vulnerable to the risk of severe
impact in the near term that have not been properly disclosed in the financial statements.
Fair Value
84. With respect to the fair value measurements of financial and nonfinancial assets and liabilities, if
any, recognized in the financial statements or disclosed in the notes thereto:
a. The underlying assumptions are reasonable and they appropriately reflect management's
intent and ability to carry out its stated course of action.
b. The measurement methods and significant assumptions used in determining fair value
are appropriate in the circumstances for financial statement measurement and disclosure
purposes and have been consistently applied.
c. The significant assumptions appropriately reflect market participant assumptions.
d. The disclosures related to fair values are complete, adequate, and in conformity with U.S.
GAAP.
e. There are no subsequent events that require adjustments to the fair value measurements
and disclosures included in the financial statements.
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque
Page 12
Tax -Exempt Bonds
85. Tax-exempt bonds issued have retained their tax-exempt status.
86. We have notified you of any instances of noncompliance with applicable disclosure requirements
of the SEC Rule 15c2-12 and applicable state laws.
GASB Statement 87, Leases
87. In connection with the adoption of GASB Statement No. 87, Leases (GASB 87), we represent the
following:
a. We have identified a complete population of potential leases as of the implementation
date.
b. We have reviewed all significant contracts to identify lease and nonlease components as
of the earliest date of adoption. Allocation of contract prices between lease and nonlease
components are based upon standalone prices or other reasonable factors.
c. Measurements of the lease assets and liabilities are based upon facts and circumstances
that existed at the beginning of the period of implementation.
d. The estimates related to any options to extend or terminate the lease terms within the
measurement of lease assets and liabilities agree to management's plans for the leases.
e. The discount rates for each lease are based upon what would be obtained by the entity
for similar loans as an incremental rate.
The classification and accounting of related -party leases between entities, for which
separate financial statements are issued, have been modified to recognize the substance
of the transaction rather than only its legal form.
g. We have adequate controls in place to prevent and/or detect errors in lease assets and
liabilities on a recurring basis.
h. The footnotes to the financial statements appropriately describe the adoption of GASB 87
and include all additional disclosures required under the Statement.
5DocuSigned by:
" �,aVSbin CFO -
Jenny Larson, CFO
jlarson@cityofdubuque.org
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque, IA
ATTACHMENT
This analysis and the attached "Schedule of Uncorrected Misstatements (Adjustments Passed)" reflect the effects on the financial
statements if the uncorrected misstatements identified were corrected.
Governmental Activities (Government -Wide Statements)
Current Assets
Non -Current Assets & Deferred Outflows
Current Liabilities
Non -Current Liabilities & Deferred Inflows
Current Ratio
Total Assets & Deferred Outflows
Total Liabilities & Deferred Inflows
Total Net Position
General Revenues & Transfers
Net Program Revenues/ Expenses
Change in Net Position
QUANTITATIVE ANALYSIS
Before Subsequentto
Misstatements Misstatements Misstatements % Change
146,745,287
180,000
146,925,287
0.12%
479,151,581
258,652
479,410,233
0.05%
(40,251,472)
(40,251,472)
(175,852,368)
(175,852,368)
3.65
625,896,868
438,652
626,335,520
0.07%
(216,103,840)
(438,652)
(216,542,492)
0.20%
(409,793,028)
(409,793,028)
(65,529,334)
(65,529,334)
47,421,232
47,421,232
(18,108,102)
(18,108,102)
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
Client: City of Dubuque, IA Governmental Activities (Government -Wide Statements(
Period Ending: June 30, 2022 scxFow.FOFuxcoaascrrou�ssrareee rs rxo�usrxsxrs aassFo)
uwi 1F1.
nal N)o. F wm.s�
�eeses Malwere dassifietl es F
e�aiatl b�tware am. marere�a
M1oultl be recoNetl es lease 180.000 U. 0 (—.652) 0 0 0 0 0
Nvable antl Eeferted InOwv
100,000 250.652
(630,652)
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0
0 0 0 0 0 0 0 0 0
0 0 0 0 0 ON 0 0
0 0 0 0 0 0 0
I L
real w••ad aala.xaema n3e.eszi
oe enFn nosuoe
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
City of Dubuque, IA
ATTACHMENT
This analysis and the attached "Schedule of Uncorrected Misstatements (Adjustments Passed)" reflect the effects on the financial
statements if the uncorrected misstatements identified were corrected.
Total Assets & Deferred Outflows
Total Liabilities & Deferred Inflows
Total Fund Balance
Revenues
Expenditures
Change in Fund Balance
QUANTITATIVE ANALYSIS
Before Subsequent to
Misstatements Misstatements Misstatements % Change
128,865,632
1 438,653
1 129,304,285
0.34%
84,144,209(438,653)1(84,582,862)
0.52%
(44,721,423
(44,721,423)
(77,198,453)
(77,198,453)
67,924,133
67,924,133
9,582,585
9,582,585
DocuSign Envelope ID: 81147007-19FE-45FB-8FCA-2629DAF371CF
Client: City of Dubuque, IA General Fund
Period Ending: June 30, 2022 scxenu—ueconaEcnrorussraTE—TS(A—STrrxrsrasseo)
ualO, . r cnanpem Pone -d
r (J) Pmtlauns Iona ealaaw
�aPrroaq.netl(P)
ses mat were olasslnea as F
raeuemw bN ware �wt TM1erekre
M1oultl be rewrtletl as lease C36,853 (d38,653) 8 8 8 0 0
ivable end tlafertetl inflow
ease recNvable C38,853 8
Oekrtetl lnPow (0.te.653)
8 8 8 8 0 0 0