Submission of Fiscal Year Ended June 30, 2023 Annual Comprehensive Financial Report (ACFR) and Results of the 2023 Financial Statement Audit, Including Required CommunicationsCity of Dubuque
City Council
/_[QIfQ►III=1iy 6RIE A
Copyrighted
October 21, 2024
ITEM TITLE: Submission of Fiscal Year Ended June 30, 2023 Annual
Comprehensive Financial Report (ACFR) and Results of the
2023 Financial Statement Audit, Including Required
Communications
SUMMARY: City Manager transmitting the Fiscal Year 2023 Annual
Comprehensive Financial Report (ACFR) and Results of the
2023 Financial Statement Audit, Including Required
Communications. Finance staff will make a presentation.
SUGGUESTED Receive and File; Presentation
DISPOSITION:
ATTACHMENTS:
1. MVM_memo
2. 2023_ACFR_Submission_Staff_memo
3. City of Dubuque Audit 2023
4. City of Dubuque - 23 ACFR
5. City of Dubuque Iowa Charged with Governance Final 2023
Page 1369 of 1713
THE CITY OF
Dubuque
DUB TEE1.
All -America City
Masterpiece on the Mississippi
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TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2023 Annual Comprehensive
Financial Report (ACFR) and Results of the 2023 Financial Statement
Audit, Including Required Communications
DATE: October 14, 2024
Chief Financial Officer Jennifer Larson and Finance Manager Brian DeMoss, are
transmitting the Fiscal Year 2023 Annual Comprehensive Financial Report (ACFR)
and Results of the 2023 Financial Statement Audit, Including Required
Communications. The City's independent auditor issued an unmodified opinion on the
financial statements.
Chief Financial Officer Jennifer Larson and Finance Manager Brian DeMoss will make
a presentation and then Chief Financial Officer Jennifer Larson, Finance Manager
Brian DeMoss 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 fil the Fiscal Year 2023 annual audit.
I �Z� k�4 la;:$�
Micliael 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
Page 1370 of 1713
THE CITY OF
DUB E
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Jenny Larson, Chief Financial Officer
Brian DeMoss, Finance Manager
Dubuque
AEI -America City
2007-2012.2013
2017*2019
SUBJECT: Submission of Fiscal Year Ended June 30, 2023 Annual Comprehensive
Financial Report (ACFR) and Results of the 2023 Financial Statement
Audit, Including Required Communications
DATE: October 14, 2024
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2023 ACFR audited by
FORVIS, LLP and Results of the 2023 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.
Page 1371 of 1713
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 2023 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 2023 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 virtually for any questions.
19
Enclosures: Fiscal Year 2023 ACFR
Results of the 2023 Financial Statement Audit, Including Required
Communications
Page 1372 of 1713
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FISCALYEAR 2023 ANNUAL COMPREHENSIVE FINANCIAL
REPORT
di, Financial audit performed annually
Required by the Municipal Oversight Law and governmental auditing standards
�- Examination of City's financial records
Conducted in accordance with generally accepted auditing standards
Report rendered by an independent auditor of how appropriate financial statements depict its financial condition and
results of its operations
Performed by persons not in any way affiliated with the City in order to ensure complete objectivity and professionalism
U
Page 1374 of 1713
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.
Page 1375 of 1713
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.
0
Page 1376 of 1713
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
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
Page 1378 of 1713
GOVERNMENT -
WIDE SUMMARY
• Governmental activities increased the City's net
position by $26.8M.
• Program Revenue (Grants) Increased by 8.4
Million
• Overall expenditures increased by $10.5
(excluding transfers out to business type
activities)
Page 1379 of 1713
GOVERNMENT -
WIDE SUMMARY
• Business -type activities increased the City's net
position by $16.9
• Total expenses increased by $4.2 M
• Charges for services increased by $1.7M
n
Page 1380 of 1713
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.
Gaming, 12%
Interes
Forfeitur
� harges for Services, 20
Taxes, 49%
Page 1381 of 1713
TAX REVENUE
3YEAR HISTORY
$45,000
$40,000
$35,000
S30,000
$25,000
$20,000
$15,000
$10,000
$5,000
$0
■ Property Tax
■ Franchise Fee
■ Local Option Sales Tax
IN Hotel/Motel
■ Backfill
■ Pan-Mutuel
2023
2022
2023
2022
2021
$23,984
$23,544
$23,052
$6,348
$6,045
$4,921
$6,077
$6,369
$5,664
$3,072
$2,916
$2,036
$994
$799
$810
$0
$34
$35
2021
Page 1382 of 1713
GENERAL FUND REVENUE
3YEAR HISTORY
$90,000
$80,000
$ 70,000
$60,000
$50,000
to
0 $40,000
t
H
$30,000
$20,000
$10,000
■
2023 2022 2021
2023
2022
2021
Taxes
$
40,475
$
39,707
$
35,405
Licenses & Permits
$
1,915
$
2,212
$
1,497
Intergovernmental
$
5,794
$
5,545
$
1,886
Charges for Services
$
16,435
$
15,969
$
10,586
Interest, Fines & Forfeitures, & Other
$
8,004
$
1,765
$
3,341
Gaming
$
9,847
$
12,000
$
7,394
Page 1383 of 1713
GENERAL FUND
EXPENDITURES
Communitl
Economic
Developmen
Culture &
Recreation, 2
Capital Projects, 5%
,-_„__,,Debt Service, 2%
Health & Social
Services, 1% Public Works, 11%
Safety, 44%
Page 1384 of 1713
GENERAL FUND
EXPENDITURES
THREEYEAR HISTDRY
$70,000
560,000
$ 50,000
$40,000
$30,000
$ 20,000
$10,000
$0
2023
2022
■ Public Safety
■ Public Works
■ Health & Social Services
w Culture & Recreation
■Community & Economic Development
■ General Government
■ Debt Service
■ Capital Projects
Public Safety
$33,740
$31,256
$29,038
Public Works
$8,526
$7,565
$5,323
Health & Social Services
$996
$861
$964
Culture & Recreation
$16,821
$14,403
$11,674
Community & Economic Development
$4,795
$4,494
$3,938
General Government
$7,128
$6,963
$6,949
Debt Service
$1,177
$126
$42
Capital Projects
$4,044
$2,256
$2,344
2021
Page 1385 of 1713
COMPARISON OF
GENERALFUND ■ Annual Expenditures* ■ Unassigned Fund Balance
BALANCES
7(n7' 2021
*Annual expenditure figure exclude transfers to other funds
Page 1386 of 1713
NET INVESTMENT IN
CAPITAL ASSETS
450,000
400,000
350,000
V)
300,000
0
0
250,000
c
Ul
200,000
0
150,000
100,000
50,000
2023
■ Governmental Activities
2022
2021
■ Business -Type activites
Page 1387 of 1713
UNFUNDED LEGACY COSTS
$70,000
$ 50,000
V)
0
0
0 $ 30,000
o $20,000
$10,000 ME mm
$0
2023
■ Retiree Healthcare (OPEB) Liability
2022
2021
■ Pension Liability IPERS/MFPRSI
Page 1388 of 1713
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
Page 1389 of 1713
COMPLIANCE AUDIT RESULTS
• Material weakness — highest level,
material adjustments identified
• Significant deficiency — does not rise t0A
material level but still something those
charged with governance should be aware
of
• Control deficiency —lowest level,
compensating controls in place to
mitigate likelihood of a material
misstatement
• 2022 —unmodified
' • Material weakness over financial
reporting
• 2021— unmodified
_ • 1 significant deficiency over financial
reporting
• 2020 — unmodified
• 1 material weakness over financial
reporting
Page 1390 of 1713
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 due to material audit adjustments related to new
government audit standards.
• No Significant Deficiencies identified in FY23
Page 1391 of 1713
GASB STATEMENT NO. 96 IMPLEMENTATION
• GASB Statement No. 96, Subscription -Based Information Technology
Arrangements (SBITA). Objective is to improve reporting related to SBITA.
Reporting
• During 2023, the City implemented the new standard noting the following
changes at July 1, 2022:
Subscription Subscription
Assets Pavahle
Governmental Activities ON 2.1 10.450 2. I 1 0.456
• The effect of implementation did not result in a restatement.
Page 1392 of 1713
COMPLIANCE AUDIT RESULTS
Auditors' Opinion on compliance for major programs Unmodified for all major federal programs
Independent Auditors' Report on Compliance for Each
Major Federal Program, Report on Internal Control,
and Report on the Schedule of Expenditures of Federal No findings
Awards Required by the Uniform Guidance
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Page 1393 of 1713
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Page 1396 of 1713
Introductory Section
June 30, 2023
City of Dubuque, Iowa
Page 1397 of 1713
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 1398 of 1713
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
Exhibit Page
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 Reporting 14
FINANCIAL SECTION
Independent Auditor's Report
15-17
Management's Discussion and Analysis (Unaudited)
18-27
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position
1
28-29
Statement of Activities
2
30
Fund Financial Statements
Balance Sheet — Governmental Funds
3
31-32
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position
3-1
33
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds
4
34-35
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities
4-1
36
Statement of Net Position — Proprietary Funds
5
37-40
Statement of Revenues, Expenses, and Changes in Fund Net Position
— Proprietary Funds
6
41-42
Statement of Cash Flows — Proprietary Funds
7
43-46
Statement of Fiduciary Net Position - Custodial Funds
8
47
Statement of Changes in Fiduciary Net Position - Custodial Funds
9
48
Notes to Financial Statements
49-107
Required Supplementary Information (Unaudited)
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds
108
Note to Required Supplementary Information — Budgetary Reporting
109
Schedule of the City's Proportionate Share of Net Pension Liability — Iowa
Employees' Retirement System
110
Schedule of City's Contribution — Iowa Employees' Retirement System
ill
Notes to Required Supplementary Information — Net Pension Liability IPERS
112
Schedule of the City's Proportionate Share of Net Pension Liability — Municipal
Fire and Police Retirement System of Iowa
113
Schedule of City's Contributions — Municipal Fire and Police Retirement System
of Iowa
114
Notes to Required Supplementary Information — Net Pension Liability MFPRSI
115
Schedule of Changed in Total OPEB Liability, Related Ratios and Notes
116
Supplementary Information
Combining Fund Statements
Combining Balance Sheet—Nonmajor Governmental Funds
A-1
117-119
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds
A-2
120-122
Combining Statement of Net Position — Nonmajor Enterprise Funds
B-1
123
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position — Nonmajor Enterprise Funds
B-2
124
Page 1399 of 1713
CITY OF DUBUQUE, IOWA
TABLE OF CONTENTS
FINANCIAL SECTION (continued)
Exhibit
Page
Combining Statement of Cash Flows — Nonmajor Enterprise Funds
B-3
125-126
Combining Statement of Net Position — Internal Service Funds
C-1
127-128
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position (Deficit) — Internal Service Funds
C-2
129-130
Combining Statement of Cash Flows — Internal Service Funds
C-3
131-132
STATISTICAL SECTION (Unaudited)
Table
Page
Statistical Section Contents
133
Financial Trends
Net Position by Component
1
134-135
Changes in Net Position
2
136-139
Fund Balances of Governmental Funds
3
140-141
Changes in Fund Balances of Governmental Funds
4
142-143
Revenue Capacity
Taxable and Assessed Value of Property
5
144
Property Tax Rates — Direct and Overlapping Governments
6
155
Principal Property Taxpayers
7
146
Property Tax Levies and Collections
8
147
Debt Capacity
Ratios of Outstanding Debt by Type
9
148-149
Ratios of General Bonded Debt Outstanding
10
150
Direct and Overlapping Governmental Activities Debt
11
151
Legal Debt Margin Information
12
152-153
Revenue Debt Coverage
13
154
Water and Sewer Receipt History
14
155
Water Meters by Rate Class
15
156
Largest Water and Sewer Customers
16
157
Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining
17
158
Demographic and Economic Information
Demographic and Economic Statistics
18
159
Principal Employers
19
160
Operating Information
Full -Time Equivalent City Government Employees by
Function/Department
20
161-162
Operating Indicators by Function/Program
21
163-164
Capital Asset Statistics by Function
22
165-166
Retail Sales
23
167
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 168-169
Independent Auditor's Report on Compliance with Requirements for Each Major
Program and on Internal Control Over Compliance Required by The Uniform Guidance 170-172
Schedule of Expenditures of Federal Awards 173-175
Notes to the Schedule of Expenditures of Federal Awards 176
Schedule of Findings and Questioned Costs 177-181
Page 1400 of 1713
THE CITY OF
DUTBQTE
Masterpiece on the Mississippi
September 30, 2024
Finance Department
Dubuque
50 West 13th Street
Dubuque, Iowa 52001-4805
MI-AmerinQq
�II
Office (563) 589-4133
Fax (563) 690-6689
TTY (563) 690-6678
finance@cityofdubuque.org
2007-2012*2013
www.cityofdubuque.org
2017*2019
Honorable Mayor, City Council Members, and Residents 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, 2023.
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 2023. 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; parks, 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-profit 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 community. In the event of dissolution,
any assets or property of the organization are transferred to the City. Travel Dubuque's purpose is to strengthen
Page 141 of 1713
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 of which operating as a non-profit (DRA) with annual net revenues disbursed
equally to the Citys' general fund, to the DRA for distribution to local non -profits in the form of grants, and
for the redevelopment of Chaplain Schmitt Island. 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 32.3 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 May 2024, the City's unemployment rate was 2.7%, below the
state unemployment rate of 2.8% and below the 4.0% 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 21 % 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. Local unemployment rates are below (2.8%) statewide (2.9%) and below the national (4.0%)
figures.
Industrial
In fiscal year 2023, the City of Dubuque experienced an expansion of industrial development in multiple
regions of the city. These regions include the Dubuque Industrial Center West (DICW), the Dubuque Industrial
Page 142 of 1713
Center South (DICS), the Kerper Boulevard industrial area, and the Dubuque Industrial Crossroads (DIC).
The Dubuque Industrial Center West and South (DICW and DICS) together are a total 713 acres of
developable land. Theses industrial centers contain more than forty-five difference businesses which have
brought hundreds of jobs to the region. The area continues to have available lots for future investment and
job creation. In fiscal year 2023 the DICW and DICS saw expansions to a number of existing businesses
including:
- Green Industrial Supply (1525 Innovation Drive): 88,000 square foot addition
- Geisler Brothers Co. (1500 Radford Road): 55,985 square foot addition
- Simmons Pet Food (501 Seippel Road): 254,880 square foot remodel and addition
- Tri-State Quality Metals (651 Seippel Road): 31,350 square foot addition
- Dubuque Screw Products (6500 Chavenelle Road): 23,000 square foot addition
Also in 2023, along Kerper Boulevard, industrial development expansion included Klauer Manufacturing
which constructed a 67,197 square foot addition to their existing facility.
The year also brought about the beginning steps in the development of a new industrial center, the Dubuque
Industrial Crossroads (DIC). The DIC is located at the southwest corner of the intersection of US Highways
151/61 and US Highway 52 (Southwest Arterial). Here, the city acquired 156 acres to accommodate future
business development.
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, as well as over 200 residential units, with
nearly 200 additional units planned to begin construction in 2025. 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.
Brewery Neighborhood Conservation District: The former Dubuque Brewing and Malting Company complex
(aka H&W Building) is a collection of buildings constructed primarily of red brick between 1896 and 1934 on
the northeast corner of Jackson and 30th Streets. The complex is eligible for the National Register of Historic
Places and is in Dubuque's Brewery Neighborhood Conservation District. The southern portion of the building
was purchased by 3000 Jackson LC in March 2017 and work to restore the building began. The new owner
obtained a demolition permit to deconstruct the unsound section of the structure and plan to stabilize and make
immediate repairs to prevent further deterioration. Although a portion of the historic structure will be
demolished, there are plans to repair, stabilize, and eventually completely restore the property in the
future. The property was rezoned in May 2020 to accommodate an anticipated $30 million mixed -use
development providing commercial/retail and residential space.
Page 143 of 1713
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 the additions of Starbucks and future construction of a Brakes
Plus facility.
Residential
In fiscal year 2023, the City of Dubuque saw an expansion of residential projects. Residential development
included market rate apartments, single-family lots, duplex lots, a cooperative community, and workforce
housing units. The following residential developments were reviewed, completed, or under construction during
the fiscal year:
- Fox Hills Apartments (3920 Plaza Drive): 390-unit market rate apartments
- Silver Oaks Subdivision #3 (end of Elmwood Drive): 128 single-family/duplex lots
- Vintae Estates of Dubuque (end of Barnwood Lane): 35 single-family cooperative community
- Old Prescott School (1199 Central Avenue): 14-unit market rate apartments
- Miller 4-Plex (end of Eastgate Court): 4-unit market rate apartments
- Rustic Point Estates #2 (Kennedy Road & Derby Grange Road): 45 single-family/duplex lots
- Roosevelt West (1895 Radford Road): 50-unit affordable workforce housing development
- The Gardens of Dubuque (1895 Radford Road): 50-unit affordable workforce housing development
Health Services
MercyOne Dubuque along with Medical Associates Clinic constructed a $25 million project to build a two-
story building east of the hospital to serve as a hematology/oncology outpatient clinic. Iowa Health Facilities
Council did grant their approval for a certificate of need for a linear acceletor included in the project.
Grand River Medical Center 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.
Page 1 N of 1713
Education
The Dubuque community takes great pride in the quality of its educational system and it is a top priority for
Dubuque residents 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.
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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
Page 14705 of 1713
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.
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 DRA which 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 + Resort, construction of a new hotel, and redevelopment of the
16th Street Corridor onto the Island. The ImOn Arena (ice rink and event center) 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 residents 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
Page 14%6 of 1713
• Sustainable Environment: Preserving and Enhancing Natural Resources
• Partnership for a Better Dubuque: Building Our Community that is Viable, Livable, and Equitable
• Diverse Arts, Culture, Parks, and Recreation Experiences and Activities
• Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility
FINANCIAL INFORMATION
Internal Controls: City management is responsible for establishing and maintaining internal controls to ensure
that the assets of the government are protected from loss, theft, or misuse, and to ensure that adequate
accounting data is compiled to allow for the preparation of financial statements in conformity with generally
accepted accounting principles.
Single Audit: As a recipient of federal and state financial assistance, the City of Dubuque's government is
responsible for ensuring that adequate internal controls are in place to ensure compliance with applicable laws,
regulations, contracts, and grants related to those programs. These internal controls are subject to periodic
evaluation by management.
As a part of the City's single audit described earlier, tests are made to determine the adequacy of internal
controls, including that portion related to federal programs, as well as to determine that the government has
complied with applicable laws, regulations, contracts, and grants.
Budgeting Controls: In addition, the government maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated budget
approved by the city council. All funds, except for fiduciary fund types which include pension trust funds,
private purpose trust funds, and 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 gains of $5,5584,933 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 $1,035,888 net position as of June 30, 2023. The City has also established a self-
insurance plan for medical, prescription drug, and short-term disability. The accumulated reserve provision
Page 1 %7 of 1713
for such claims equaled $5,773,859 as of June 30, 2023. 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 upgraded to the Aa2 rating on outstanding general obligation
unlimited tax (GOULT) debt on July 10, 2023; a Aa2 rating on outstanding second lien sales tax increment
debt that is ultimately backed by an unlimited property tax pledge; and an Al rating on outstanding senior lien
sales tax increment revenue bonds. The Aa2 rating reflects strong financial operations and ample revenue -
raising flexibility, which has resulted in steadily improved available fund balance and cash. The City
serves as a regional economic center and its regional economic growth rate has outpaced the nation
over the past five years. On July 13, 2021, Moody's upgraded the rating on the water revenue debt from A2
to Al. The Al rating reflects the water enterprise's very strong cash position, updated system condition, and
strong capital and operational planning with unlimited rate setting authority.
Moody's provides credit ratings and research covering debt instruments and securities. The purpose of
Moody's ratings is to provide investors with a simple system to gauge future relative creditworthiness of
securities. The firm uses nine rating classifications to designate least credit risk to greatest credit risk: Aaa,
Aa, A, Baa, Ba, B, Caa, Ca, and C. Moody's appends numerical modifiers 1, 2, and 3 to each rating
classification.
AWARDS AND ACKNOWLEDGEMENTS
Awards: The Government Finance Officers Association of the United States and Canada (GFOA) awarded a
Certificate of Achievement for Excellence in Financial Reporting to the City of Dubuque, Iowa, for its Annual
Comprehensive Financial Report for the fiscal year ended June 30, 2022. This was the 35th 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, 2024. 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 18th 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 2023.
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,
Page 44%8 of 1713
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Michael C. Van Milligen
City Manager
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Jennifer M. Larson
Chief Financial Officer
Page 449 of 1713
KEY
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Community
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Engineering
Facilities
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Finance &
Budget
Health Services
Human
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Recreation Parks
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Public Works
Transportation
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Parking Transit
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City Clerk
Airport
Sustainability
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Emergency
Communications
Equity &
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Housing &
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Technology
Planning
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Elected by the Appointed by the Appointed by the Appointed by the Appointed by the
Citizens of Dubuque City Council Library Board of Airport Commission City Manager
Trustees
12
Page 1410 of 1713
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2023
CITY COUNCIL
Brad M. Cavanagh
Mayor
Ric W. Jones
Council Member, At —Large Representative
David T. Resnick
Council Member, At -Large Representative
Susan R. Farber
Council Member, Ward One Representative
Laura J. Roussell
Council Member, Ward Two Representative
Daniel C. Sprank
Council Member, Ward Three Representative
Katy A. Wethal
Council Member, Ward Four Representative
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
City Manager
Barry A. Lindahl
Senior Counsel
Crenna M. Brumwell
City Attorney
Jason Lehman
Assistant City Attorney
Adrienne N. Breitfelder
City Clerk
DEPARTMENT MANAGERS
Todd E. Dalsing
Airport Director
Cori L. Burbach
Assistant City Manager
Gus N. Psihoyos
City Engineer
Jennifer M. Larson
Chief Financial Officer
Therese H. Goodmann
Director of Strategic Partnerships
Jill M. Connors
Economic Development Director
Jessica George-Rethwisch
Emergency Communications Director
Amy Scheller
Fire Chief
Mary Rose Corrigan
Public Health Director
Alexis M. Steger
Housing and Community Development Director
Shelley M. Stickfort
Chief Human Resources Officer
Antonio Mouzon
Community Impact Director
Christine A. Kohlmann
Chief Information Officer
Marie L. Ware
Leisure Services Director
Nicholas L. Rossman
Library Director
Randy W. Gehl
Public Information Officer
Arielle Swift
Public Works Director
Wally C. Wernimont
Planning Services Director
Jeremy Jensen
Police Chief
Gina S. Bell
Director of Sustainable
Ryan Knuckey
Director of Transportation Services
Christopher J. Lester
Water Department Director
Deron Muehring
Water & Resource Recovery Center Director
Gisella Aitken-Shandle
Chief of Equity and Human Rights
Anderson Sainci
Director of the Office of Shared Prosperity &
Neighborhood Support
13
Page 1411 of 1713
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Annual Comprehensive
Financial Report
For the Fiscal Year Ended
June 30, 2022
Executive Director/CEO
14
Page 1412 of 1713
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, 2023, 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, 2023, 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 29% and 2%, respectively, of the assets and 1 % and 17%, respectively, of the
revenues of the aggregate discretely presented component units as of June 30, 2023. 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, are
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, component units
included in the financial statements of the aggregate discretely presented component units, were not audited in
accordance with Government Auditing Standards.
Emphasis of Matter
As described in Note 17 to the financial statements, in 2023, the City adopted Governmental Accounting
Standards Board Statement No. 96, Subscription Based Information Technology Arrangements. Our opinions
are not modified with respect to this matter.
15
Page 1413 of 1713
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.
16
Page 1414 of 1713
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. 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 are 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. 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 September 29, 2024,
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.
West Des Moines, Iowa
September 29, 2024
17
Page 1415 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
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, 2023. Comparative information
from the previously issued financial statements for the year ended June 30, 2022, is also included. The 2022
information has not been restated for the implementation of GASB Statement No. 96. 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 $709,270,904 compared to net position of
$665,485,190 for fiscal year 2022.
• Governmental program revenues increased by $8,397,772 from fiscal year 2022. This increase was
due largely in part to a significant increase in grant revenues in public works related to the
Northwest Arterial project. There was also an increase in general government capital grants related
to Federal Covid Fund projects.
• The City's business type activities program revenues increased by $5,798,047. Charges for services
increased by $1,895,498. Rate increases included 5% for water, 5% for sewer, 1.69% for
stormwater, and a 2.6 % increase for refuse in fiscal year 2023. Operating grants and contributions
increased by $2,067,312. The Transit System had an increase in operating grants and contributions
related to federal operating grants. Capital contributions received from governmental funds were
$1,299,847 and are shown in the transfers line and are detailed out in Note 6.
• Expenses of the City's governmental activities increased approximately 11.2%, or $10,503,323
from fiscal year 2022 to fiscal year 2023. The increase was seen mainly in culture and recreation,
community and economic development and general government, which is due to additional
programming costs in recreation, additional development related costs and subscription asset
related amortization.
• The City implemented Governmental Accounting Standards Board Statement No. 96, Subscription
Based Information Technology Arrangements, for the year ended June 30, 2023. This resulted in a
restatement as of July 1, 2022 for subscription assets and subscription liabilities. The effect of
implementing this Statement did not result in a restatement of beginning net position. See Note 17
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.
Im
Page 1416 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
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.
19
Page 1417 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
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 general services, garage services, stores/printing, health insurance, and workers'
compensation. The engineering services fund is used to budget for engineering staff time expected to be
spent on capital projects, but the actual time spent working on capital projects is directly charged to the
funds that the capital projects are budgeted. 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.
Fiduciaryfunds. 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 police seizures.
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 the total OPEB liability.
Other information. The combining statements referred to earlier in connection with nonmajor
governmental funds, nonmajor enterprise funds, and internal service funds are presented immediately
following the required supplementary information.
20
Page 1418 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
CK1]1I_II 111//101 19 AIA 117 Do W 1►"Ll[e1 /\ W-11 M r1, ul
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, lease and subscription 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.
Current and other assets
Capital, lease, and subscription assets
Total assets
Deferred outflows of resources
Long-term liabilities
Other liabilities
Total liabilities
Deferred inflows of resources
CITY OF DUBUQUE'S NET POSITION
Governmental Activities Business -type Activities Total
2023 2022* 2023 2022* 2023 2022*
$ 195,308,266 $ 196,804,646 $ 58,314,028 $ 53,694,044 $ 253,622,294 $ 250,498,790
434,690,348 420,411,188 388,775,568 387,565,873 823,465,916 807,977,061
= ---TrM= ---TTr,7= —7-77,7= —raM=
9,403,632 8,681,034 1,341,811 1,031,486 10,745,443 9,712,520
105,570,830 85,447,508 157,122,209 165,553,863 262,693,039 251,001,371
34,689,475 40,251,472 17,022,908 15,658,748 51,712,383 55,910,220
—140260,305 —�a�?ssa —rlrr i ---rRrz= —TrXT= 306,911,591
62,480,241 90,404,860 1,677,086 5,386,630 64,157,327 95,791,490
Net position:
Net investment in capital assets 400,952,682 386,739,779 231,850,352 219,652,664 632,803,034 606,392,443
Restricted 47,002,287 35,584,078 2,828,344 3,124,213 49,830,631 39,708,291
Unrestricted (11,293,269) (12,530,829) 37,930,508 32,915,285 26,637,239 20,384,456
Total net position 436,661,700' $ ----T6T7= 7777= $ --- 737= ---777= $ iiil
*Not restated for the implementation of GASB Statement No. 96
Net position of the governmental activities increased $26,868,672 over fiscal year 2022 balance of
$409,793,028. There was a $14,279,230 increase in capital assets. The increase is due to construction of
building and infrastructure and the implementation of GASB 96. Unearned revenue decreased by
$3,507,748 related to American Rescue Plan Act funds spent. The net pension liability increased by
$23,357,985 which was offset by pension related deferred inflows that decreased by $27,924,619.
21
Page 1419 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
Net position for the business -type activities increased $16,917,042 over fiscal year 2022 of $255,692,162.
Charges for services increased $1,689,147. Operating grants and contributions increased $2,067,312 due to
increased funding. Capital grants and contributions increased $1,835,237. The Transit Fund saw an increase
in federal operating grants related to its operations.
The largest portion of the City's net position, $632,803,334 or 89.2% reflects its investment in capital assets
less any related debt used to acquire these assets that is still outstanding. Restricted net position in the
amount of $49,830,631 or 7.0% represents resources that are subject to external restrictions on how they
may be used. The remaining balance of unrestricted net position of $26,637,239, or 3.8% may be used to
meet the City's ongoing obligations to citizens and creditors.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$40,211,474 in 2023. Other governmental revenues included gaming $9,846,790, local option sales taxes
$12,154,160, and charges for services $19,957,341. In calendar year 2023, gross gaming revenues
decreased 9.7% for the Dubuque Racing Associations (DRA) and the Diamond Jo increased 3.6% as
compared to calendar year 2022. Gross gaming revenue for DRA was impacted by construction disruption
as the property underwent redevelopment starting in Spring 2023. In calendar year 2023, the DRA showed
increases of 15.6%, in sports betting revenue, hotel room revenue, food and beverage sales, entertainment
sales and other revenue as compared to calendar year 2022. This resulted in calendar year 2023 total gross
revenue decreasing 5.0% as compared to calendar year 2022. The current Dubuque market is approximately
$123.6 million annually in 2023 down from the $126 million market in 2022 and up from the $120 million
market in 2019 (pre COVID). DRA share of the market was 37.8% in 2023 (impacted by construction
disruption), 41.1% in 2022, 41.2% in 2021 and 41.2% in 2019. Local option sales taxes decreased based on
a change in the timing of payments by the Iowa Department of Revenue.
Governmental operating expenses during 2023 totaled $104,589,968. Public Safety increased $1,348,141
due to additional positions being filled at the police and fire departments. Public works increased
$1,234,558 due to additional snow removal costs and street maintenance costs. Culture and recreation
increased $2,830,123 due to additional programming costs in parks and recreation, specifically noting both
City pools being open in 2023. Community and economic development increased $2,227,724 due to
additional housing and grant activities. General government increased $2,383,974 due to subscription based
asset costs and an increase in payment to other agencies due to a change in private management company
for the Grand River Center.
Business -type activities. Charges for services increased $1,689,147 based on rate increases included 5%
for water, 5% for sewer, 1.69% for stormwater, and a 2.6% increase for refuse in fiscal year 2023. Operating
grants and contributions increased $2,067,312 due to additional federal funding received in 2023. Operating
expenses increased from $33,935,701 in 2022 to $37,757,629 in 2023. The increase was primarily in
employee expense and supplies and services. Nonoperating expenses consist of interest expense of
$3,821,170. Investment earnings increased from $119,466 in 2022 to $1,571,115 in 2023.
22
Page 1420 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
Governmental Activities
Business -type Activities
Total
2023
2022*
2023
2022*
2023
2022*
Revenues:
Program revenues
Charges for services
$ 19,957,341 $
22,700,982
$ 38,792,295 $
37,103,148
$ 58,749,636 $
59,804,130
Operating grants and contributions
18,825,358
19,956,589
4,349,167
2,281,855
23,174,525
22,238,444
Capital grants and contributions
16,280,486
4,007,842
9,279,293
7,444,056
25,559,779
11,451,898
General revenues
Property taxes
40,211,474
39,406,493
-
-
40,211,474
39,406,493
Local option sales tax
12,154,160
12,738,941
12,154,160
12,738,941
Hotel/moteltax
3,071,858
2,915,854
3,071,858
2,915,854
Utility franchise fees
7,061,030
6,044,713
7,061,030
6,044,713
Gaming
9,846,790
12,000,140
-
-
9,846,790
12,000,140
Unrestricted investment earnings
5,674,974
(390,365)
1,571,115
119,466
7,246,089
(270,899)
Miscellaneous
2,058,660
-
435,822
-
2,494,482
-
Gain on sale of capital assets
-
244,104
57,732
(206,351)
57,732
37,753
Total revenues
135,142,1 1
-119,625,293
54,485,424
47742, 774
189,627,555
166,367,467
Expenses:
Public safety
31,897,099
30,548,958
-
-
31,897,099
30,548,958
Public works
23,176,938
21,942,380
23,176,938
21,942,380
Health and social services
966,542
1,003,870
966,542
1,003,870
Culture and recreation
17,282,589
14,452,466
17,282,589
14,452,466
Community and economic
development
19,094,222
16,866,498
19,094,222
16,866,498
General government
9,651,738
7,267,764
9,651,738
7,267,764
Interest on long-term debt
2,520,840
2,004,709
-
-
2,520,840
2,004,709
Sewage disposal works
-
13,038,176
12,197,134
13,038,176
12,197,134
Water utility
8,140,552
7,212,652
8,140,552
7,212,652
Stormwater utility
6,493,098
6,047,606
6,493,098
6,047,606
Parking facilities
3,261,531
2,972,990
3,261,531
2,972,990
Refuse collection
5,599,895
4,452,838
5,599,895
4,452,838
Transit system
4,615,225
4,027,600
4,615,225
4,027,600
Salt
-
-
103,396
129,265
103,396
129,265
Total expenses
104,589,9 88
94,086,645
41,251,873
37,040,085
145,841,841
131,126,730
Increase in net position before transfers
30,552,163
25,538,648
13,233,551
9,702,089
43,785,714
35,240,737
Transfers
(3,683,491)
(7,430,546)
3,683,491
7,430,546
-
-
Increase innet position
26,868,6 22
18,108,102
16,917,042
17,132,635
43,785,714
35,240,737
Net position, beginning, as restated
409,793,028
391,684,926
255,692,162
238,559,527
665,485,190
630,244,453
Net position, ending
$ 436,661,700 $
409,793,028
27� $
755,692,162
$ 709,270,904 $
665,485,190
*Not restated for the implementation of GASB Statement No. 96
23
Page 1421 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
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 $100,515,736 at June 30, 2023.
$3,795,901 is in nonspendable for inventory, long-term receivables, and prepaid items. $69,412 is
nonspendable endowment corpus. $45,553,740 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 $3,769,015 for capital improvements. $4,336,311 is
assigned for capital improvements and cable equipment replacement. This leaves $43,060,769 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 $6,833,019 to $51,554,442. Charges for Services increased by $465,187, investment earnings
increased by $4,862,537, and contributions increased by $1,160,246. These increases were offset by a
decrease in gaming revenues of $2,153,350 or 17.9% in fiscal year 2023. General Fund expenditures
increased from $67,924,133 in 2022 to $86,919,488 in 2023. The $18,995,355 increase was primarily due
to purchases of capital assets of $11,481,795, increase in principal payments of $2,430,462 and increase in
culture and recreation expenditures of $2,418,139.
The fund balance of special revenue fund Tax Increment Financing increased by $5,360,492 to
$15,952,920. Tax revenues increased by $705,619 due to an increase in debt certified in the North Cascade
Housing TIF, which increased tax revenues. Investment earnings increased by $618,884. Tax Increment
Financing transfers out decreased $2,201,208.
The fund balance of the special revenue Community Development Fund decreased by $690,133 to
$5,914,591. Intergovernmental revenue decreased from $4,648,280 in 2022 to $3,386,788 in 2023
primarily due to the decrease in Section 8 Housing related revenue.
The fund balance of the Debt Service Fund decreased by $223,412 to a deficit of $164,295. The Debt
Service Fund paid $4,378,537 in principal and $2,650,791 in interest and fiscal charges during fiscal year
2023.
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, 2023, totaled $271,051,811 of which the
unrestricted is $36,373,115.
The Sewer Fund had an increase of $3,665,019 for total net position of $36,545,265. Operating expenses
increased $964,345 primarily for utilities and supplies and services. The Sewer Fund operating income
from operations was $3,327,040.
The Water Utility had an increase in net position by $3,605,193 for total net position of $44,141,087. There
was a 5% increase in water rates in 2023.
The Storm Water Utility had an increase in net position of $7,941,351. Ending net position is $118,035,954.
Storm Water Utility had capital contributions of $7,585,240 which consisted of a contribution of assets
from governmental funds $391,046 and a capital grant of $7,079,324.
24
Page 1422 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
The Parking Facilities had a decrease in net position of $33,411. Ending net position is $49,990,937.
Parking Facilities had operating loss of $918,664 after depreciation of $1,095,203 for fiscal year 2023.
Other Enterprise Funds net position increased by $1,365,895 to $22,338,568. This was primarily due to
Transit's increase of $2,073,787 in net position which was offset by the decrease of $685,440 in Refuse
Collection.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2022-2023 cash basis budget. The first amendment was passed
in October 2022 to reflect operating and capital budget carryovers (continuing appropriation authority) from
fiscal year 2022 and amended the fiscal year 2023 budget for operating and capital City Council actions
since the beginning of the fiscal year. The second budget amendment was passed in May 2023 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 $29,856,772. 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 $115,301,373 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 $38,442,762 less than the final amended budget; and, cash basis
expenditures were $135,697,859 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
25
Page 1423 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
CAPITAL, LEASE AND SUBCRIPTION ASSETS AND DEBT ADMINISTRATION
Capital, lease and subscription assets. The City's investment in capital, lease and subscription assets for
its governmental and business -type activities as of June 30, 2023, amounts to $823,465,916 (net of
accumulated depreciation and amortization). This investment in capital and lease assets includes land,
buildings, improvements other than buildings, machinery and equipment, infrastructure, lease assets,
subscription assets, 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, LEASE, AND SUBSCRIPTION ASSETS
(net of accumulated depreciation/amortization)
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Lease equipment
Lease real estate
Subscription assets
Construction in progress
Accumulated depreciation/amortization
Total assets
Governmental Activities Business -type Activities Total
2023 2022* 2023 2022* 2023 2022*
$ 108,554,411 $
109,344,920
147,433,210
143, 501,321
28,773,920
28,347,112
56,224,961
56,334,774
275,039,351
272,137,258
55,894
55,894
208,093
208,093
3,483,380
-
17,083,741
4,048,607
(202,166,613)
(193,566,791)
$ 434,690,348 $
420,411,188
$ 24,996,358 $
24,996,358
157,43 3,288
157,43 3,28 8
226,502,056
191,73 8,459
126,450,411
124,741,230
267,361
267,361
10,990
10,990
21,549
-
16,179,533
42,436,293
(163,085,978)
(154,058,106)
38� $
387,565,873
*Not restated for the implementation of GASB Statement No. 96
$ 133,550,769 $
134,341,278
304,866,498
300,934,609
255,275,976
220,085,571
182,675,372
181,076,004
275,039,351
272,137,258
323,255
323,255
219,083
219,083
3,504,929
-
33,263,274
46,484,900
(365,252,591)
(347,624,897)
$ 823,465,916 $
807,977,061
Major expenditures during 2022-2023 were for the construction work on Bee Branch Creek Railroad
culverts, Ice Center remediation project, and the Northwest arterial rehab project.
Long-term debt. At year end, the City had $239,143,838 of debt outstanding. During fiscal year 2023, the
City implemented GASB 96, which resulted in increases to subscriptions payable in the amount of
$1,798,899 as of year-end.
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 $1,651,152 of SRF debt in 2023. The City has pledged income derived from the acquired or
constructed assets to pay debt service.
The City continues to operate under the State debt capacity limitations. The State limits the amount of
general obligation debt outstanding to 5% of the assessed value of all taxable property in the community.
Thus the City's debt capacity is $259,297,290. With $101,742,461 of debt applicable against the capacity,
the City is utilizing 39.24% of this limit. Additional information on the City's long-term debt can be found
in Note 7 of this report.
26
Page 1424 of 1713
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2023
ECONOMIC FACTORS
The City's unemployment rate as of June 2023 was unchanged from 3.0% in October 2022. The national
average was 3.6% for June 2023, according to the Bureau of Labor Statistics. State of Iowa was 2.9% as
reported in June 2023.
The assessed valuation of taxable property, net of exemptions, increased by 2.34% to $2,973,185,000. In
fiscal year 2023, there was 2.6 % increase to the minimum monthly refuse rate of $15.38, a 5% increase to
sewer rate, a 5% increase to water rates, and a 1.69% increase to the storm water monthly fee ($9.00 per
single family unit (SFU)).
Rate increases included 5% for water, 5% for sewer, 1.69% for stormwater, and no increase for refuse in
fiscal year 2023.
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.
27
Page 1425 of 1713
Basic Financial Statements
Fiscal Year Ended June 30, 2023
City of Dubuque, Iowa
Page 1426 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2023
Primary Government
Component Units
Dubuque
Metropolitan
Dubuque
Dubuque
Governmental
Business -type
Area Solid
Initiatives and
Convention and
Activities
Activities
Total
Waste Agency
Subsidiaries
Visitors Bureau
ASSETS
CURRENT ASSETS
Cash and investments
$ 108,403,110
$ 43,354,028 $
151,757,138
$ 11,192,033
$ 10,314,830
$ 365,402
Receivables
Property tax
Delinquent
465,807
-
465,807
-
-
-
Succeeding year
26,623,300
-
26,623,300
-
-
-
Accounts and other
3,445,219
4,569,793
8,015,012
527,960
14,643
109,399
Leases
1,437,046
90,807
1,527,853
39,747
-
-
Special assessments
733,077
170,937
904,014
-
Accrued interest
815,921
321,632
1,137,553
70,903
-
Notes
531,262
-
531,262
-
178,369
Intergovernmental
5,240,908
1,915,167
7,156,075
-
Internal balances
(1,974,860)
1,974,860
-
-
-
Inventories
934,106
1,414,948
2,349,054
-
127,779
7,799
Prepaid items
575,541
112,469
688,010
31,330
-
2,500
Total Current Assets
147,230,437
53,924,641
201,155,078
11,861,973
10,635,621
485,100
NONCURRENT ASSETS
Restricted cash and investments
12,460,024
3,777,185
16,237,209
5,826,770
1,575,837
289,370
Assets held for commercial development
-
-
-
-
426,419
-
Notes receivable
6,384,486
-
6,384,486
55,191
Lease receivable
29,233,319
612,202
29,845,521
-
-
Capital, lease and subscription assets
Land
108,554,411
24,996,358
133,550,769
2,737,804
-
-
Buildings
147,433,210
157,433,288
304,866,498
566,523
2,500,940
265,111
Improvements other than buildings
28,773,920
226,502,056
255,275,976
21,080,570
-
27,491
Machinery and equipment
56,224,961
126,450,411
182,675,372
5,041,085
143,890
Infrastructure
275,039,351
-
275,039,351
-
-
Lease equipment
55,894
267,361
323,255
41,493
Lease real estate
208,093
10,990
219,083
-
Subscription assets
3,483,380
21,549
3,504,929
Construction in progress
17,083,741
16,179,533
33,263,274
Accumulated depreciation and amortization
(202,166,613)
(163,085,978)
(365,252,591)
(11,352,401)
-
(181,592)
Total Noncurrent Assets
482,768,177
393,164,955
875,933,132
23,900,351
4,558,387
585,763
Total Assets
$ 629,998,614
$ 447,089,596 $
1,077,088,210
$ 35,762,324
$ 15,194,008
$ 1,070,863
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows $ 8,832,591 $ 1,142,975 $ 9,975,566 $ 83,804 $ $
OPEB related deferred outflows 571,041 198,836 769,877 14,919
Total Deferred Outflows of Resources $ 9,403,632 $ 1,341,811 $ 10,745,443 $ 98,723 $ $
28
Page 1427 of 1713
CITY OF DUBUQUE, IOWA EXHIBIT I (continued)
STATEMENT OF NET POSITION (Continued)
JUNE 30, 2023
Primary Government
Component Units
Dubuque
Metropolitan
Dubuque
Dubuque
Governmental
Business -type
Area Solid
Initiatives and
Convention and
Activities
Activities
Total
Waste Agency
Subsidiaries
Visitors Bureau
LIABILITIES
CURRENT LIABILITIES
Accounts payable
$ 6,956,309
$ 3,428,442 $
10,384,751
$ 359,254
$ 107,926 $
318,258
Accrued payroll
870,150
154,630
1,024,780
11,992
56,817
Leases payable
22,354
21,833
44,187
-
41,334
Subscription payable
718,361
11,549
729,910
-
Loans payable
269,674
-
269,674
Notes payable
-
6,437,000
6,437,000
-
General obligation bonds payable
3,368,873
3,061,127
6,430,000
465,000
Revenue bonds payable
-
3,515,000
3,515,000
-
Tax increment financing bonds payable
730,000
-
730,000
-
-
-
Line of credit
-
-
-
-
2,500,000
-
Accrued compensated absences
688,647
71,677
760,324
11,779
-
14,469
Accrued interest payable
227,779
321,650
549,429
35,351
-
Intergovemmental payable
-
-
-
98,718
-
7,958
Unearned revenue
20,507,475
20,507,475
-
10,501
OPEB liability
329,853
329,853
Total Current Liabilities
34,689,475
17,022,908
51,712,383
982,094
2,607,926
449,337
NONCURRENT LIABILITIES
Lease Payable
141,788
203,103
344,891
-
2,963
Subscription payable
1,080,538
-
1,080,538
-
Loans payable
2,940,483
-
2,940,483
Notes payable
-
102,084,425
102,084,425
-
General obligation bonds payable
40,345,552
24,241,864
64,587,416
6,311,101
-
-
Revenue bonds payable
-
25,581,115
25,581,115
-
-
-
Landfill closure and post -closure care
-
-
-
3,610,397
-
-
Tax increment financing bonds payable
16,255,776
-
16,255,776
-
Accrued compensated absences
6,599,148
753,951
7,353,099
215,540
Net pension liability
33,654,102
3,266,545
36,920,647
271,136
OPEB liability
4,553,443
991,206
5,544,649
89,459
Total Noncurrent Liabilities
105,570,830
157,122,209
262,693,039
10,497,633
2,963
Total Liabilities
140,260,305
174,145,117
314,405,422
11,479,727
2,607,926
452,300
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
4,445,747
615,064
5,060,811
95,387
-
-
OPEB related deferred inflows
848,340
272,566
1,120,906
46,955
Lease related deferred inflows
30,299,378
673,281
30,972,659
35,878
Succeeding year property tax
26,623,300
-
26,623,300
-
Deferred gain on refunding
263,476
116,175
379,651
Total deferred inflows of resources
62,480,241
1,677,086
64,157,327
178,220
NET POSITION
Net investment in capital assets
Restricted for/by:
Bond ordinance development agreement
Debt service
Employee benefits
Community development
Iowa Finance Authority Trust
Capital projects
Franchise agreement
Endowments, expendable
Endowments, nonexpendable
Other
State statute
Landfill closure and post closure care
Minority interest
Unrestricted
Total Net Position
See notes to financial statements.
400,952,682 231,850,352 632,803,034 11,297,480
5,060,955 2,828,344 7,889,299
124,192 - 124,192
20,312 20,312
14,790,275 14,790,275
1,638,134 1,638,134
21,531,697 21,531,697
1,073,474 1,073,474
102,047 102,047
87,869 87,869
2,573,332 2,573,332 -
- - 350,364
1,866,009
- - 2,426,459 - -
(11,293,269) 37,930,508 26,637,239 8,262,788 12,586,082 618,563
$ 436,661,700 $ 2 , 22609,204 $ 709,270904 $ 24,203,100 $ 12,586,082 $ 618,563
29
Page 1428 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED NNE 30, 2023
Functions/Programs
Primary government
Governmental Activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities
Business -type activities
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
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
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
Net position, ending of year
See notes to financial statements
Program Revenues
Net (Expense) Revenue and Changes in Net Position
Primary Government
Operating
Capital Grants
Charges for
Grants and
and
Total Program
Governmental Business -type
Expenses
Services
Contributions
Contributions
Revenues
Activities Activities
Total
$ 31,897,099
$ 4,966,834
$ 916,835
$ -
$ 5,883,669
$ (26,013,430) $ -
$ (26,013,430)
23,176,938
5,707,265
7,441,175
11,254,259
24,402,699
1,225,761 -
1,225,761
966,542
167,639
17,504
-
185,143
(781,399) -
(781,399)
17,282,589
3,233,591
531,783
-
3,765,374
(13,517,215) -
(13,517,215)
19,094,222
988,475
9,697,465
160,446
10,846,386
(8,247,836) -
(8,247,836)
9,651,738
4,893,537
220,596
4,865,781
9,979,914
328,176 -
328,176
2,520,840
(2,520,840)
(2,520,840)
104,589,968
19,957,341
18,825,358
16,280,486
55,063,185
(49,526,783)
(49,526,783)
EXHIBIT 2
Component Units
Dubuque
Metropolitan Area Dubuque Dubuque
Solid Waste Initiatives and Convention and
Agency Subsidiaries Visitors Bureau
13,038,176
14,835,494
-
651,479
15,486,973
-
2,448,797
2,448,797
8,140,552
10,802,909
-
901,195
11,704,104
-
3,563,552
3,563,552
6,493,098
5,611,781
81,079
7,586,737
13,279,597
-
6,786,499
6,786,499
3,261,531
2,202,247
93,526
-
2,295,773
-
(965,758)
(965,758)
5,599,895
4,801,782
-
-
4,801,782
-
(798,113)
(798,113)
4,615,225
458,919
4,174,562
139,882
4,773,363
-
158,138
158,138
103,396
79,163
-
-
79,163
-
(24,233)
(24,233)
41,251,873
38,792,295
4,349,167
9,279,293
52,420,755
-
11,168,882
11,168,882
$ 145,841,841 $
58,749,636 $
23,174,525 $
25,559,779 $
107,483,940 $
(49,526,783) $
11,168,882 $
(38,357,901)
$ 6,012,582 $
8,007,326 $
50,946 $
- $
8,058,272
$
2,045,690
$ -
$ -
232,055
4,993
-
-
4,993
-
(227,062)
-
2,143,055
394,588
1,355,188
1,749,776
(393,279)
$ 8,387,692 A
8,406,907 A
1,406,134 ,
9,813,041
2,045,690
(227,062)
(393,279)
$
40,211,474 $
- $
40,211,474
-
-
-
12,154,160
-
12,154,160
-
-
-
3,071,858
-
3,071,858
-
-
-
7,061,030
-
7,061,030
-
-
-
9,846,790
-
9,846,790
-
-
-
5,674,974
1,571,115
7,246,089
225,986
(305,313)
768
2,058,660
435,822
2,494,482
-
110,151
-
-
57,732
57,732
9,710
-
-
(3,683,491)
3,683,491
76,395,455
5,748,160
82,143,615
235,696
(195,162)
768
26,868,672
16,917,042
43,785,714
2,281,386
(422,224)
(392,511)
409,793,028
255,692,162
665,485,190
21,921,714
13,008,306
1,011,074
$
436,661,700 $
272,609,204 $
709,270,904 $
24,203,100
$ 12,586,082
$ 618,563
KIM
Page 1429 of 1713
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Page 1430 of 1713
CITY OF DUBUQUE, IOWA
BALANCESHEET
GOVERNMENTAL FUNDS
JUNE 30, 2023
Special Revenue
ASSETS
Cash and investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Leases
Due from other funds
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 INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax
Lease related deferred inflows
Special assessments
Grants
Other
Total Deferred Inflows of Resources
FUND BALANCES
Nonspendable
Endowment corpus
Inventory
Long-term notes receivable
Prepaid items
Restricted
Endowments
Library
Police
Veterans
Debt service
Bond ordinance
Capital improvements
Franchise agreement
Special assessments
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Assigned
Dubuque Racing gaming/distribution
Cable equipment replacement
Unassigned
Total Fund Balances
Total Liabilities, Deferred Inflows
of Resources, and Fund Balances
See notes to financial statements.
Tax Incremental
Community
General
Financing
Development
$ 64,110,644
$ 12,437,065 $
3,027,197
191,496
256,292
-
23,866,093
-
3,100,189
68,213
-
535,533
144,562
-
2,780,505
-
2,995,085
2,386,670
386,721
30,670,365
-
3,010,351
-
268,191
80,632
324,448
-
12,660
216,513
3,211,039
131,529,211
16,048,958
6,502,295
2,825,426
96,038
156,624
766,801
-
13,613
-
417,467
20,507,475
-
-
24,099,702
96,038
587,704
23,866,093
-
-
30,299,378
68,213
777,637
863,746
55,875,067
268,191 80,632
2,557,886 -
324,448 12,660
2,920,215
13,032,705
6,604,724
2,992,649
1,343,662
44,067,606 (783,425)
51,554,442 15,952,920 5,914,591
$ 131,529,211 $ 16,048,958 $ 6,502,295
31
Page 1431 of 1713
EXHIBIT 3
Nonmajor Governmental
Debt Service Funds Total
$ - $ 20,447,411 $
100,022,317
828 17,191
465,807
304,738 2,452,469
26,623,300
- 151,870
3,252,059
664,864
733,077
84,219
764,314
1,140,158
6,915,748
2,433,731
5,207,122
-
30,670,365
-
3,010,351
499,329
848,152
52,755
389,863
9,032,472
12,460,024
305,566 36,976,469
191,362,499
2,701,876 5,779,964
64,321 844,735
164,742
2,845,609
3,427,818
20,507,475
164,742
5,611,806
30,559,992
304,738
2,452,469
26,623,300
-
-
30,299,378
652,096
720,309
-
994,083
1,771,720
381
7,937
872,064
305,119
4,106,585
60,286,771
-
69,412
69,412
499,329
848,152
-
2,557,886
52,755
389,863
92,132
92,132
1,129,237
1,129,237
8,885
8,885
-
201,288
201,288
59,117
-
59,117
-
-
2,920,215
18,135,704
31,168,409
585,078
585,078
12,768
12,768
1,865,003
1,865,003
818,494
7,423,218
18,978
18,978
3,769,015
3,769,015
-
2,992,649
1,343,662
(223,412)
43,060,769
(164,295)
27,258,078
100,515,736
$ 305,566 $
36,976, 669 $
191,362,499
32
Page 1432 of 1713
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Page 1433 of 1713
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2023
Total fund balances - governmental funds
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital, lease and subscription assets used in governmental activities are not
financial resources and therefore are not reported in the funds.
Cost of capital, lease and subscription assets
Accumulated depreciation
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
unavailable in the funds. Those revenues consist of -
Special assessments
Grants and other
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
Deferred outflows of resources
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.
Internal service funds allocated to business -type activities
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
General obligation bonds
Tax increment financing bonds
Loans payable
Lease payable
Subscription payable
Deferred gain on debt refundings
Accrued interest
Compensated absences
Net pension liability
Total OPEB liability
Net position of governmental activities
See notes to financial statements.
636,495,632
(201,856,277)
720,309
2,643,784
(4,587,392)
9,185,103
(43,714,425)
(16,985,776)
(3,210,157)
(164,142)
(1,798,899)
(263,476)
(227,779)
(7,287,795)
(33,318,409)
(4,883,296)
EXHIBIT 3-1
100,515,736
434.639.355
3.364.093
4.597.711
6,956,352
(1,557,393)
(111,854,154)
436,661,700
33
Page 1434 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
Special Revenue
Tax Increment
Community
General
Financing
Development
REVENUES
Taxes
$ 40,475,333
$ 12,910,158
$ -
Special assessments
-
-
3,000
Licenses and permits
1,915,186
-
-
Intergovernmental
5,794,040
-
3,386,788
Charges for services
16,434,539
-
9,260
Fines and forfeits
369,273
-
-
Investment earnings
4,540,535
319,935
31,307
Contributions
1,875,957
522,933
33,689
Gaming
9,846,790
-
-
Miscellaneous
1,218,181
-
48,474
Total Revenues
82,469,834
13,753,026
3,512,518
EXPENDITURES
Current
Public safety
33,739,860
-
-
Public works
8,525,577
-
-
Health and social services
995,604
-
20,000
Culture and recreation
16,821,307
-
97,419
Community and economic development
4,794,754
2,714,639
3,424,801
General government
7,127,775
-
-
Debt service
Principal
1,121,934
-
-
Interest and fiscal charges
55,247
-
-
Capital projects
4,043,866
-
860,431
Total Expenditures
77,225,924
2,714,639
4,402,651
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
5,243,910
11,038,387
(890,133)
OTHER FINANCING SOURCES (USES)
Issuance of debt
811,353
-
-
Transfers in
3,091,414
-
200,000
Transfers out
(2,651,986)
(6,471,725)
-
Insurance recovery
255,138
-
-
Sale of capital assets
83,190
793,830
-
Total Other Financing Sources (Uses)
1,589,109
(5,677,895)
200,000
NET CHANGE IN FUND BALANCES
6,833,019
5,360,492
(690,133)
FUND BALANCES, BEGINNING
44,721,423
10,592,428
6,604,724
FUND BALANCES, ENDING
$ 51,554,442
$ 15,952,920 $
5,914,591
See notes to financial statements.
34
Page 1435 of 1713
EXHIBIT 4
Governmental
Debt Service Funds Total
$ 71,770 $ 9,039,057 $
62,496,318
- 115,387
118,387
- -
1,915,186
- 21,981,542
31,162,370
- 112,033
16,555,832
- -
369,273
87,582 520,786
5,500,145
- 110,337
2,542,916
- -
9,846,790
- 620,664
1,887,319
159,352 32,499,806
132,394,536
-
8,928
33,748,788
-
9,011,452
17,537,029
-
-
1,015,604
-
247,641
17,166,367
-
8,077,503
19,011,697
-
601,094
7,728,869
4,378,537
45,371
5,545,842
2,650,791
1,025
2,707,063
-
20,385,563
25,289,860
7,029,328
38,378,577
129,751,119
(6,869,976)
(5,878,771)
2,643,417
811,353
6,646,564 654,015
10,591,993
- (3,851,926)
(12,975,637)
- 33,526
288,664
- 39,305
916,325
6,646,564 (3,125,080) (367,302)
(223,412) (9,003,851) 2,276,115
59,117 36,261,929 98,239,621
$ (164,295) $ 27,258,078 $ 100,515,736
35
Page 1436 of 1713
CITY OF DUBUQUE, IOWA EXHIBIT 4-1
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2023
Net change in fund balances - total governmental funds
2,276,115
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
23,793,645
Transfers of capital assets to enterprise funds
(1,299,847)
Contributions from developers
1,496,215
Depreciation and amortization expense
(10,896,810)
13,093,203
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.
(913,743)
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:
Special assessments
416,860
Grants and other
1,864,660
2,281,520
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
(811,353)
Debt repayments
5,545,842
4,734,489
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
(8,329)
Amortization of bond discount/premium
165,085
Increase in compensated absences
(273,219)
Deferred amount on debt refundings
37,640
Pension adjustment
4,012,265
OPEB adjustment
(25,402)
Total additional expenses
3,908,040
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The change in net position of the internal service funds is
reported with governmental activities.
1,489,048
Change in net position of governmental activities
26,868,672
See notes to financial statements.
36
Page 1437 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
Business -type Activities -Enterprise Funds
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Accrued interest
Intergovernmental
Leases
Due from other funds
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
Lease equipment
Lease real estate
Construction in progress
Subscription assets
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
See notes to financial statements.
Sewage Disposal Stormwater
Works Water Utility Utility
$ 4,748,802 $
10,390,943 $
20,544,144
2,108,456
1,307,621
691,957
-
-
21,604
98,938
16,628
150,913
-
90,807
-
-
-
417,467
8,607
38,150
12,524
310,509
1,084,847
-
7,275,312
12,928,996
21,838,609
306,236 982,230 2,080,000
- 612,202 -
254,858
209,244
21,596,104
72,257,722
11,080,162
-
54,962,047
1,702, 821
163,729,530
39,185,243
71,521,482
1,720,563
267,361
-
-
4,850,695
4,822,511
4,281,742
(75,203,606)
(32,403,381)
(25,276,879)
96,574,320
56,932,839
166,051,060
96,880,556
58,527,271
168,131,060
104,155,868
71,456,267
189,969,669
238,570
270,190
93,729
18,266
40,625
6,748
256,836
310,815
100,477
37
Page 1438 of 1713
Business -type Activities -Enterprise Funds
Other Enterprise
Parking Facilities Funds
Total
EXHIBIT 5
Governmental
Activities -
Internal Service
Funds
$ 2,142,149 $
5,527,990 $
43,354,028 $
8,380,793
112,411
520,285
4,740,730
193,160
-
1,893,563
1,915,167
33,786
10,821
44,332
321,632
51,607
-
-
90,807
-
-
-
417,467
-
10,656
42,532
112,469
185,678
-
19,592
1,414,948
85,954
2,276,037
8,048,294
52,367,248
8,930,978
181,319 227,400 3,777,185 -
- - 612,202 -
2,900,152
36,000
24,996,358
-
62,216,456
11,878,948
157,433,288
-
4,625,254
1,482,404
226,502,056
-
2,284,678
11,738,445
126,450,411
361,329
-
-
267,361
-
10,990
-
10,990
-
2,224,5 85
-
16,179,533
-
-
21,549
21,549
-
(22,304,842)
(7,897,270)
(163,085,978)
(310,336)
51,957,273
17,260,076
388,775,568
50,993
52,138,592
17,487,476
393,164,955
50,993
54,414,629
25,535,770
445,532,203
8,981,971
70,050
470,436
1,142,975
218,529
24,256
108,941
198,836
-
94,306
579,377
1,341,811
218,529
m
Page 1439 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2023
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Leases Payable
Accrued payroll
General obligation bonds payable
Subscription liability
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences - current
Accrued interest payable
Total Current Liabilities
NONCURRENT LIABILITIES
Leases 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
Stormwater
Works
Water Utility
Utility
$ 1,754,169
$ 600,175 $
739,472
21,833
-
-
30,695
40,115
11,661
683,736
784,451
965,883
-
370,000
3,145,000
3,191,000
919,000
2,327,000
16,606
16,121
16,202
107,723
41,276
159,739
5,805,762
2,771,138
7,364,957
203,103
-
-
7,089,248
8,352,161
4,375,273
-
2,549,840
23,031,275
53,479,987
11,676,355
36,928,083
190,425
275,089
-
710,119
813,408
180,757
171,165
230,805
63,217
61,844,047
23,897,658
64,578,605
67,649,809
26,668,796
71,943,562
123,440
135,262
46,446
76,260
60,857
33,738
-
673,281
-
17,930
87,799
10,446
217,630
957,199
90,630
38,984,720
32,655,780
95,875,761
-
567,025
2,080,000
(2,439,455)
10,918,282
20,080,193
$ 36,545,265
$ 44,141,087 $
118,035,954
39
Page 1440 of 1713
Business -type Activities -Enterprise Funds
Parking Other Enterprise
Facilities Funds Total
EXHIBIT 5
Governmental
Activities -
Internal Service
Funds
$ 145,064 $
189,562 $
3,428,442 $
1,176,345
-
-
21,833
-
9,780
62,379
154,630
25,415
574,159
52,898
3,061,127
-
-
11,549
11,549
-
-
-
3,515,000
-
-
-
6,437,000
-
1,701
21,047
71,677
-
9,592
3,320
321,650
-
740,296
340,755
17,022,908
1,201,760
-
-
203,103
-
3,426,254
998,928
24,241,864
-
-
-
25,581,115
-
-
-
102,084,425
-
15,735
272,702
753,951
-
206,580
1,355,681
3,266,545
335,693
69,181
456,838
991,206
-
3,717,750
3,084,149
157,122,209
335,693
4,458,046
3,424,904
174,145,117
1,537,453
48,125
261,791
615,064
706,695
11,827
89,884
272,566
-
-
-
673,281
-
-
-
116,175
-
59,952
351,675
1,677,086
706,695
47,909,990
16,424,101
231,850,352
50,993
181,319
-
2,828,344
-
1,899,628
5,914,467
36,373,115
6,905,359
$ 49,990,937 7
22,338,568
271,051,811 $
6,956,352
1,557,393
$ 272,609,204
40
Page 1441 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
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
Business -type Activities -Enterprise Funds
Sewage Disposal
Stormwater
Works
Water Utility
Utility
$ 14,835,234
$ 10,733,853 $
5,572,643
197,706
45,722
39,138
15,032,940
10,779,575
5,611,781
3,932,200
2,949,429
1,282,887
1,171,396
990,126
46,930
779,540
568,514
33,462
2,208,371
1,840,469
1,067,161
144,343
128,568
30,384
3,470,050
1,323,313
2,198,033
11,705,900
7,800,419
4,658,857
3,327,040
2,979,156
952,924
-
-
81,079
353,686
219,246
756,346
-
-
1,497
(1,404,244)
(424,926)
(1,856,543)
260
23,334
7,690
(1,050,298)
(182,346)
(1,009,931)
2,276,742
2,796,810
(57,007)
CAPITAL CONTRIBUTIONS 1,433,526 929,580 7,585,240
TRANSFERS IN 97,635 21,687 479,065
TRANSFERS OUT (142,884) (142,884) (65,947)
CHANGE IN NET POSITION
NET POSITION, BEGINNING
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.
3,665,019 3,605,193 7,941,351
32,880,246 40,535,894 110,094,603
$ 36,545,265 $ 44,141,087 $ 118,035,954
41
Page 1442 of 1713
EXHIBIT 6
Business -type Activities -Enterprise Funds
Governmental
Activities -
Other Enterprise
Internal Service
Parking Facilities
Funds
Total
Funds
$ 2,079,471
$ 5,330,093 $
38,551,294
$ 15,013,586
167,458
60,228
510,252
106,122
2,246,929
5,390,321
39,061,546
15,119,708
832,639
5,605,274
14,602,429
940,689
306,258
135,121
2,649,831
47,733
107,856
1,076,828
2,566,200
211,240
701,345
2,372,350
8,189,696
12,158,424
122,292
112,392
537,979
110,403
1,095,203
1,124,895
9,211,494
10,756
3,165,593
10,426,860
37,757,629
13,479,245
(918,664)
(5,036,539)
1,303,917
1,640,463
-
4,324,215
4,405,294
-
55,480
141,036
1,525,794
220,150
226,064
668
228,229
-
(111,259)
(24,198)
(3,821,170)
-
-
49,294
80,578
1,430
170,285
4,491,015
2,418,725
221,580
(748,379)
(545,524)
3,722,642
1,862,043
489,415
-
10,437,761
-
280,000
2,263,281
3,141,668
-
(54,447)
(351,862)
(758,024)
-
(33,411)
1,365,895
16,544,047
1,862,043
50,024,348
20,972,673
254,507,764
5,094,309
$ 49,990,937
$ 22,338,568 $
271,051,811
$ 6,956,352
372,995
$ 16,917,042
42
Page 1443 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
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 interfimd 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
Payment of debt
Interest paid
Capital contribution
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
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
See notes to financial statements.
Business -type Activities -Enterprise Funds
Sewage
Disposal
Water
Stormwater
Parking
Works
Utility
Utility
Facilities
$ 14,613,830 $
10,779,468 $
5,497,522 $
2,185,427
(3,843,410)
(3,612,326)
(392,388)
(1,155,201)
(4,141,631)
(3,181,193)
(1,326,739)
(890,076)
197,706
45,722
39,138
167,458
6,826,495
4,031,671
3,817,533
307,608
97,635
21,687
479,065
280,000
(142,884)
(142,884)
(65,947)
(54,447)
-
-
(417,467)
-
-
-
1,497
226,064
-
178,013
-
(45,249)
(121,197)
175,161
451,617
260
23,334
7,690
-
(2,105,113)
(1,968,070)
(3,989,003)
(29,594)
-
9,780
-
-
415,365
201,097
1,034,691
-
(3,818,591)
(1,959,653)
(5,469,422)
(618,728)
(1,448,076)
(513,803)
(1,965,939)
(132,127)
-
-
7,194,194
-
(6,956,155)
(4,207,315)
(3,187,789)
(780,449)
261,425
203,680
611,475
45,176
86,516
(93,161)
1,416,380
23,952
4,968,522
10,941,134
19,127,764
2,299,516
$ 5,055,038 $
10,847,973 $
20,544,144 $
2,323,468
43
Page 1444 of 1713
EXHIBIT 7
Business -type Activities -Enterprise Funds
Governmental
Activities
Other Enterprise
Internal
Funds
Total
Service Funds
$ 5,219,173 $
38,295,420 $
14,914,590
(3,617,149)
(12,620,474)
(13,741,210)
(5,994,891)
(15,534,530)
(1,154,325)
60,228
510,252
106,122
(4,332,639)
10,650,668
125,177
2,263,281
3,141,668
-
(351,862)
(758,024)
-
-
(417,467)
-
668
228,229
-
3,580,864
3,758,877
-
5,492,951 5,953,283 -
49,294
80,578
1,430
(179,345)
(8,271,125)
-
-
9,780
-
-
1,651,153
-
(62,487)
(11,928,881)
-
(25,292)
(4,085,237)
-
-
7,194,194
-
(217,830)
(15,349,538)
1,430
96,704
1,218,460
180,475
1,039,186
2,472,873
307,082
4,716,204
42,053,140
8,073,711
$ 5,755,390 $
44,526,013 $
8,380,793
44
Page 1445 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2023
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Noncash lease revenue
Change in assets and liabilities
(Increase) decrease in receivables
(Increase) decrease in inventories and prepaid items
Increase (decrease)in accounts payable
(Decrease) increase in accrued liabilities
Increase in net pension liability
(Increase) in deferred outflows - pension related
Decrease (increase) in deferred outflows - OPEB related
(Decrease) increase in deferred inflows - pension related
Increase (decrease) in deferred inflows - OPEB related
Increase in deferred amount on refunding
(Decrease) increase in total OPEB liability
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Business -type Activities -Enterprise Funds
Sewage
Disposal Water Stormwater Parking
AV-11. TTr;If., TTr;hf- P04;P
$ 3,327,040 $ 2,979,156 $ 952,924 $ (918,664)
3,470,050
1,323,313
2,198,033
1,095,203
-
(176,410)
-
-
(221,404)
45,615
(75,121)
105,956
(56,149)
(86,945)
14,962
(1,488)
518,630
205,802
771,893
86,325
(63,610)
(73,173)
(7,279)
(18,410)
686,772
786,585
176,061
198,858
(70,137)
(77,803)
(56,767)
(194)
8,128
9,338
1,595
(10,187)
(756,667)
(867,770)
(152,779)
(240,334)
24,905
11,720
(1,534)
683
(2,241)
(27,096)
(1,306)
(2,287)
(38,822)
(20,661)
(3,149)
12,147
3,499,455
1,052,515
2,864,609
1,226,272
$ 6,826,495 $
4,031,671 $
3,817,533 $
307,608
RECONCILIATION OF CASH AND CASH EQUIVALENTS
TO SPECIFIC ASSETS ON THE COMBINED
STATEMENT OF NET POSITION
Cash and investments, current and restricted 5,055,038 11,373,173 22,624,144 2,323,468
Less items not meeting the definition of cash equivalents - (525,200) (2,080,000) -
Cash and cash equivalents at end of the year 5,055,038 10,847,973 20,544,144 2,323,468
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources
Amortization of bond discount (premium)
Net acquisition of capital assets through accounts and
retainage payable
Contributions of capital assets from Governmental Activities
Acquisition of capital assets through financing arrangement
See notes to financial statements.
$ 651,479 $ 901,195 $ 391,046 $ -
$ 37,351 $ 85,464 $ 112,947 $ 19,302
$ 654,713 $ (328,314) $ (1,344,733) $ 24,695
$ 782,047 $ 28,385 $ - $ 489,415
45
Page 1446 of 1713
EXHIBIT 7
(continued)
Business -type Activities -Enterprise Funds
Governmental
Other Activities
Enterprise Internal
Funds Total Service Funds
$ (5,036,539) $ 1,303,917 $ 1,640,463
1,124,895
9,211,494
10,756
-
(176,410)
-
(110,920)
(255,874)
(98,996)
(27,184)
(156,804)
(167,708)
106,726
1,689,376
(1,045,702)
(133,897)
(296,369)
(20,645)
1,309,032
3,157,308
304,218
(54,237)
(259,138)
12,719
(60,061)
(51,187)
-
(1,518,800)
(3,536,350)
(509,928)
372
36,146
-
-
(32,930)
-
67,974
17,489
-
703,900
9,346,751
(1,515,286)
$ (4,332,639) $
10,650,668 $
125,177
5,755,390
47,131,213
8,380,793
-
(2,605,200)
-
5,755,390
44,526,013
8,380,793
$ -
$
1,943,720
$ -
$ 812
$
255,876
$ -
$ (121,413)
$
(1,115,052)
$ -
$ -
$
1,299,847
$ -
$ 21,549
$
21,549
$ -
46
Page 1447 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY NET POSITON
CUSTODIAL FUNDS
YEAR ENDED JUNE 30, 2023
ASSETS
EXHIBIT 8
Custodial Funds
Cash and investments $ 327,398
Total Assets 327,398
NET POSITION
Restricted for individuals, organizations, and other governments 327,398
Total Net Position
See notes to financial statements.
$ 327,398
47
Page 1448 of 1713
CITY OF DUBUQUE, IOWA
STATEMENT OF CHANGES IN FIDUCIARY NET POSITION
CUSTODIAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
ADDITIONS
Collections on behalf of individuals
Investment earnings
Total Additions
DEDUCTIONS
Payment to individuals, organization, or other agencies
Total Deductions
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
See notes to financial statements.
EXHIBIT 9
Custodial Funds
$ 345,525
9,350
354,875
1,253,146
1,253,146
(898,271)
1,225,669
$ 327,398
w
Page 1449 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part of
this report. The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand, Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long -Term Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Pension Plans
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. Prospective Accounting Pronouncements
16. Tax Abatements
17. Adoption of New Standard
49
Page 1450 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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, 2023, $695,947 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.
50
Page 1451 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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).
51
Page 1452 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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 and assets obtained in police seizures. This fund is used to
account for the resources held for improvements at the greyhound racing facility.
52
Page 1453 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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 lending/borrowing arrangements outstanding at year-end
are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or "advances
to/from other funds" (i.e., the non -current portion of interfund loans). All other outstanding balances
between funds are reported as "due to/from other funds." Any residual balances outstanding between the
governmental activities and business -type activities are reported in the government -wide financial
statements as "internal balances."
53
Page 1454 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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, 2023, and 2023 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.
54
Page 1455 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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, Lease and Subscription Assets
Capital assets, lease assets and subscription 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 subscription 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
2 to 75
55
Page 1456 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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.
56
Page 1457 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
At the commencement of a lease, the City initially 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 capital assets and lease liabilities are reported with long-term debt on the
statement of net position.
Subscription -based Information Technology Agreements (SBITAs)
The City is a subscriber to various information technology agreements. The City recognizes a subscription
liability and an intangible right -to -use subscription asset (subscription asset) in the government -wide and
proprietary financial statements.
At the commencement of a subscription, the City initially measures the subscription liability at the present
value of payments expected to be made during the subscription term. Subsequently, the subscription
liability is reduced by the principal portion of subscription payments made. The subscription asset is
initially measured as the initial amount of the subscription liability, adjusted for subscription payments
made at or before the subscription commencement date, plus certain initial direct costs. Subsequently, the
subscription asset is amortized on a straight-line basis over the shorter of the subscription term or the useful
life of the underlying asset.
Key estimates and judgments related to subscriptions include how the City determines 1) the discount rate
it uses to discount the expected subscription payments to present value 2) subscription term, and
3) subscription payments. The City uses the interest rate charged by the vendor as the discount rate. When
the interest rate charged by the vendor is not provided, the City generally uses its estimated incremental
borrowing rate as the discount rate for subscriptions. The subscription term includes the noncancellable
period of the Subscription. Subscription payments included in the measurement of the subscription liability
are composed of fixed payments. The City monitors changes in circumstances that would require a
remeasurement of its subscription and will remeasure the subscription asset and liability if certain changes
occur that are expected to significantly affect the amount of the subscription liability.
Subscription assets are reported with capital assets and subscription liabilities are reported with long-term
debt on the statement of net position.
57
Page 1458 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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 issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
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.
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 represent 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 revenue.
58
Page 1459 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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, lease and subscription 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 $8,532,503 for the governmental activities and $948,842 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, 2023 consists of $124,192 for debt service and $20,312 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.
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.
59
Page 1460 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued)
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.
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. 96
As of July 1, 2022 the City adopted GASB Statement No. 96, Subscription -Based Information Technology
Arrangements (SBITAs). The objective of this Statement is to better meet the information needs of financial
statement users by improving accounting and financial reporting for SBITAs by governments. The effect
on the implementation of this standard on beginning net position is disclosed in Note 17.
.c
Page 1461 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 2 — DEFICIT FUND EQUITY
The following funds had a deficit net position/fund balance amount as of June 30, 2023:
Major Governmental Fund:
Debt Service $ 164,295
Internal Service Fund:
General Service 102,948
The Debt Service Fund deficit will be addressed the next fiscal year with additional transfers to the fund.
The General Service Fund deficit will be addressed during next fiscal year's reallocation of expenses.
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS
Cash on Hand. Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year-end was $14,495 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 $141,568,186, and the bank balance was
$137,521,683. The City's deposits in banks at June 30, 2023, 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 $17,017,603
and the bank balance was $17,299,405. The Agency's deposits in banks at June 30, 2023, were entirely
covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter 12C of
the Code of Iowa.
Investments. As of June 30, 2023, 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
$ 1,840,938 $
- $
- $ - $
1,840,938
U.S. Treasury Securities
720,879
3,484,088
678,047 -
4,883,014
Federal Agency Obligations
921,472
15,022,117
478,299 3,525,609
19,947,497
Corporate Stock
67,615
-
- -
67,615
$ 3,550,904 $
18,506,205 $
1,156,346 $ 3,525,609 $
26,739,064
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.
61
Page 1462 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
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.
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 investment 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.
62
Page 1463 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 14,495
Carrying amount of deposits 141,568,186
Carrying amount of investments 26,739,064
Total $ 168,321,745
Government -wide
Cash and investments $ 151,757,138
Cash and investments - restricted 16,237,209
Fiduciary
Cash and investments 327,398
Total $ 168,321,745
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand
Carrying amount of deposits
Total
Cash and investments
Cash and investments - restricted
Total
$ 1,200
17,017,603
$ 17,018,803
$ 11,192,033
5,826,770
$ 17,018,803
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the Dubuque Initiatives and Subsidiaries (December 31, 2022) follows:
Deposits
Beneficial interest in assets held by others
Total
Cash and investments
Cash and investments -restricted
Total
$ 10,314,830
1,575,837
$ 11,890,667
$ 10,314,830
1,575,837
$ 11,890,667
63
Page 1464 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 Convention and Visitors Bureau (June 30, 2023) follows:
Deposits
Total
Cash and investments
Cash and investments -restricted
Total
NOTE 4 — NOTES RECEIVABLE
$ 654,772
$ 654,772
$ 365,402
289,370
$ 654,772
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, 2023 the City had the following notes receivable.
Downtown Rehabilitation
Loan Program
Judy Davison
Gronen Adaptive
CARich Properties, LLC
Franklin Investments, LLC
HJD Landlord LLC
Interstate Building LLP
Downtown Housing Incentive
Loan Caradco Landlord, LLC
Original
Interest
Current
Balance
Rate
Issued
Maturity
Balance
Portion
$ 300,000
3 %
2020
12/1/2040
$ 284,000 $
-
300,000
2
2006
5/l/2036
123,394
7,993
120,000
-
2020
9/l/2030
87,000
12,000
300,000
3
2021
4/l/2041
258,000
-
466,000
3
2016
4/1/2036
410,917
26,654
300,000
3
2010
9/22/2030
160,139
18,617
4,500,000
3
2012
6/l/2030
2,759,754
219,618
$ 4,083,204 $
284,882
M
Page 1465 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 4 — NOTES RECEIVABLE (continued)
Community Development Installment Loans Receivables
Residential Rehabilitation Installment Loan Programs
First Time Home Buyers
Local Housing Assistance Program (LHAP)
Homebuyers Assistance Program
Infill
RRP Reserve
Washington Neighborhood Revitalize
The Accessibility Rehabilitation Program (for rentals)
Iowa Finance Authority
HOME Program (1)
Historic Preservation Revolving Loan Fund/Historic Preservation
Housing Forgivable Loan Program
MicroLending
(1) Principal payments deferred if one tenant is low income
Interest
Current
Rate
Balance
Portion
6 % $
219,333 $
43,000
6
500
500
6
921,056
141,000
6
24,779
3,607
-
14,760
720
-
117,064
10,000
6
20,751
3,000
-
252,249
4,000
-
1,125,397
32,553
90,650
5,000
6
3,759
1,000
-
42,246
2,000
$ 2,832,544 $ 246,380
At December 31, 2022, Dubuque Initiatives and Subsidiaries had the following notes receivable:
City of Dubuque, 5.00%, unsecured, matures July 2023 $ 18,645
Various Small Businesses, 1 %, unsecured, matures July 2023 (2) 274,514
Less: allowance for doubtful accounts (59,599)
Total notes receivable $ 233,560
(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 $530 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 June 2024.
65
Page 1466 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2023, include amounts due to/from other funds. Interfund balances are as
follows:
General Fund
Community Development
Debt Service
Nonmajor Governmental
Stormwater Utility
Due From
Other Funds
$ 3,010,351
417,467
$ 3,427,818
Due To
Other Funds
417,467
164,742
2,845,609
$ 3,427,818
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.
Page 1467 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 5 - INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2023, consisted of the following:
Transfers From
Tax Increment
Nonmajor
Sewer Water
Stormwater
Parking
Nonmajor
Transfer to
General
Financing
Governmental
Disposal Works Utility
Utility
Facilities
Enterprise
Total
General $
-
$ 467,212 $
2,338,434
$ 142,884 $ 142,884 $
- $
-
$ - $
3,091,414
Community Development
-
200,000
-
- -
-
-
-
200,000
Debt Service
404,278
4,819,908
1,156,434
- -
-
54,447
211,497
6,646,564
Nonmajor Governmental
172,382
423,205
58,428
- -
-
-
654,015
Sewage Disposal Works
31,008
-
680
- -
65,947
-
-
97,635
Water Utility
21,687
-
-
- -
-
-
-
21,687
Stormwater Utility
181,115
-
297,950
- -
-
-
479,065
Parking Facilities
-
280,000
-
- -
-
-
280,000
Nonmajor Enterprise
1,841,516
281,400
-
- -
-
-
140,365
2,263,281
$
2,651,986
$ 6,471,725 $
3,851,926
$ 142,884 $ 142,884 $
65,947 $
54,447
$ 351,862 $
13,733,661
Net capital assets of $782,047, $28,385 and $489,415 were transferred from governmental capital assets to Sewage Disposal Works, Water Utility and
Parking Facilities, respectively. The transfers were reported as a capital contribution in those 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.
67
Page 1468 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS
Capital, lease and subscription asset activity for the year ended June 30, 2023, 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 $ 109,344,921 $ $ - $ 42,872 $ (833,382) $ 108,554,411
Construction in Progress 4,048,608 (1,299,847) 15,009,728 (674,748) 17,083,741
Total Capital assets, not
being depreciated 113,393,529 (1,299,847) 15,052,600 (1,508,130) 125,638,152
Capital and lease assets,
being depreciated:
Buildings
143,501,321
4,088,449
(156,560)
147,433,210
Improvements other
than buildings
28,347,112
426,808
28,773,920
Machinery and equipment
56,334,774
2,169,528
(2,279,341)
56,224,961
Lease equipment
55,894
-
55,894
Lease real estate
208,093
-
208,093
Subscription asset
2,110,456
1,372,924
3,483,380
Infrastructure
272,137,257
2,902,094
275,039,351
Total capital and lease assets,
being depreciated
502,694,907
10,959,803
(2,435,901)
511,218,809
Less accumulated depreciation
and amortization for:
Buildings
(50,533,827)
(2,390,331)
136,604
(52,787,554)
Improvements other
than buildings
(14,478,719)
(879,609)
-
(15,358,328)
Machinery and Equipment
(34,850,981)
(2,855,502)
2,171,144
(35,535,339)
Lease equipment
(33,430)
(16,847)
-
(50,277)
Lease real estate
(20,809)
(20,809)
(41,618)
Subscription asset
(784,083)
(784,083)
Infrastructure
(93,649,027)
(3,960,387)
-
(97,609,414)
Total accumulated depreciation
and amortization
(193,566,793)
(10,907,568)
2,307,748
(202,166,613)
Total capital and lease assets,
being depreciated, net
309,128,114
52,235
(128,153)
309,052,196
Governmental activities
capital and lease assets, net
$ 422,521,643 $
$ (1,299,847) $ 15,104,835
$ (1,636,283) $
434,690,348
Page 1469 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS (continued)
Business -type activities:
Beginning
Balance Transfers Transfers Ending
(as restated) In out Increases Decreases Balance
Capital and lease assets, not
being depreciated:
Land $ 24,996,358 $ - $ $ $ $ 24,996,358
Construction in progress 42,436,293 1,299,847 6,465,436 (34,022,043) 16,179,533
Total Capital and lease assets,
not being depreciated 67,432,651 1,299,847 6,465,436 (34,022,043) 41,175,891
Capital and lease assets,
being depreciated / amortized:
Buildings
157,433,288
-
157,433,288
Improvements other
than buildings
191,738,459
34,763,597
226,502,056
Machinery and equipment
124,741,230
1,892,803
(183,622)
126,450,411
Lease equipment
267,361
-
267,361
Lease real estate
10,990
-
10,990
Subscription asset
-
21,549
21,549
Total capital and lease assets,
being depreciated / amortized
474,191,328
36,677,949
(183,622)
510,685,655
Less accumulated depreciation
and amortization for:
Buildings
(59,811,602)
(2,026,802)
(61,838,404)
Improvements other
than buildings
(44,793,651)
(3,255,569)
-
(48,049,220)
Machinery and equipment
(49,423,235)
(3,893,220)
183,622
(53,132,833)
Lease equipment
(24,123)
(24,123)
-
(48,246)
Lease real estate
(5,495)
(5,495)
(10,990)
Subscription asset
(6,285)
-
(6,285)
Total accumulated
depreciation / amortization
(154,058,106)
(9,211,494)
183,622
(163,085,978)
Total capital and lease assets,
being depreciated, net
320,133,222 -
27,466,455
-
347,599,677
Business -type activities
capital and lease assets, net $
387,565,873 $ 1,299,847 $
$ 33,931,891 $
(34,022,043) $
388,775,568
.•
Page 1470 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS (continued)
Depreciation and amortization expense was charged to functions/programs for the primary government as
follows:
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets
Total depreciation and amortization expense - governmental activities
Business -type activities:
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
Refuse collection
Salt
Transit system
Total depreciation and amortization expense - business -type activities
$ 877,811
6,025,089
1,458
1,973,732
163,821
1,854,901
10,756
$ 10,907,568
$ 3,470,050
1,323,313
2,198,033
1,095,203
251,529
27,639
845,727
$ 9,211,494
70
Page 1471 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency (Component Unit):
Beginning Ending
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
$ 2,737,804 $ - $ - $ 2,737,804
874,435 - (874,435) -
3,612,239 - (874,435) 2,737,804
368,779
197,744
- 566,523
19,854,404
1,226,166
21,080,570
4,176,483
896,050
(31,448) 5,041,085
24,399,666
2,319,960
(31,448) 26,688,178
(154,530)
(40,366)
- (194,896)
(7,661,261)
(782,738)
20,512 (8,423,487)
(2,442,923)
(302,031)
10,936 (2,734,018)
(10,258,714)
(1,125,135)
31,448 (11,352,401)
14,140,952
1,194,825
- 15,335,777
Dubuque Metropolitan Area
Solid Waste, capital assets $ 17,753,191 1,194,825 (874,435) $ 18,073,581
Depreciation expense of $1,125,135 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
71
Page 1472 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 $101,645,500. During fiscal year 2023, the City did not issue and debt.
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, 2023, are as follows:
Purpose
Corporate Purpose Series
2016A
Corporate Purpose Refunding
Series 2016B
Corporate Purpose Series
2016C
Corporate Purpose Series
2017A
Corporate Purpose Refunding
Series 2017B
Corporate Purpose Refunding
Series 2017C
Corporate Purpose Series
2018A
Corporate Purpose Refunding
Series 2018B
Corporate Purpose Series
2019A
Corporate Purpose Series
2019B
Corporate Purpose Refunding
Series 2019C
Corporate Purpose Refunding
Series 2021A
Corporate Purpose Refunding
Series 2021B
Corporate Purpose Refunding
Series 2022A
Corporate Purpose Refunding
Series 2022B
Date of
Issue
4/4/2016
4/4/2016
4/4/2016
4/17/2017
4/17/2017
4/17/2017
3/19/2018
3/19/2018
6/20/2019
6/20/2019
7/3/2019
6/2/2021
6/2/2021
5/16/2022
5/16/2022
Interest
Maturity Dates Rates
06/01/17- 2.00-3.75 % $
06/01/35
06/01/16-
2.00-3.00
06/01/28
06/01/17-
2.00-3.13
06/01/35
06/01/18-
3.00
06/01/30
06/01/18-
3.00
06/01/30
06/01/18-
3.00 3.45
06/01/30
06/01/18-
3.00-4.00
06/01/31
06/01/18-
3.00-3.15
06/01/26
06/01/22-
3
06/01/39
06/20/20-
3
06/01/27
06/01/20-
3
06/01/32
06/01/22-
2
06/01/41
06/01/22-
2
06/01/36
06/01/22-
4.00-4.125
06/01/42
06/01/22-
4.00-4.70
06/01 /42
Amount
Amount
Originally
Outstanding
Issued
End of Year
2,830,000 $ 1,900,000
10,920,000
1,740,000
4,145,000
2,835,000
8,495,000
2,847,584
9,745,500
5,465,000
2,120,000
1,300,000
4,950,000
3,259,997
1,005,000
410,000
2,240,000
2,105,000
860,000
440,000
4,240,000
2,855,000
27,995,000
23,795,000
12, 53 5,000
10,755,000
2,345,000
2,345,000
7,220,000
7,220,000
$ 101,645,500 $ 69,272,581
72
Page 1473 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year
June 30
2024
2025
2026
2027
2028
2029-2033
2034-2038
2039-2043
Total
Governmental Activities
Principal
$ 3,368,873
3,636,269
3,616,038
3,791,973
3,749,566
14,805,743
6,108,179
3,585,574
$ 42,662,215
Interest
$ 1,165,192
1,086,971
999,548
911,442
815,947
2,729,985
1,291,845
390,556
$ 9,391,486
Business -type Activities
Principal
$ 3,061,127
3,018,770
2,908,939
2,983,045
2,995,476
9,726,764
1,756,821
159,424
$ 26,610,366
Interest
$ 681,944
600,014
519,489
442,200
361,618
819,338
78,563
6,205
$ 3,509,371
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, 2023, are as follows:
Amount Amount
Date of Maturity Interest Originally Outstanding Current
Purpose Issue Dates Rates Issued End of Year Portion
Diamond Jo Parking Ramp 10/16/2007 06/01/11-06/01/37 7.50% $ 23,025,000 $ 17,080,000 $ 730,000
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year
June 30
2024
2025
2026
2027
2028
2029-2033
2034-2038
Total
Governmental Activities
Principal
$ 730,000
785,000
845,000
910,000
975,000
6,100,000
6,735,000
$ 17,080,000
Interest
$ 1,281,000
1,226,250
1,167,375
1,104,000
1,055,750
3,963,750
1,308,375
$ 11,106,500
73
Page 1474 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 7 — LONG-TERM DEBT (continued)
Revenue Bonds. The City also issues bonds where the City pledges income derived from the acquired or
constructed assets to pay debt service. These bonds are generally issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. Revenue bonds
outstanding at June 30, 2023, are as follows:
Purpose
Sales Tax Incremental 2014
Sales Tax Incremental 2015A
Water Revenue Refunding
Series 2021C
Date of
Issue
Maturity Dates
06/01/23-
6/14/2014
06/01/29
6/15/2015
06/01/23-
06/01/31
06/01 /22-
7/ 19/2021
06/01/30
Amount
Amount
Interest
Originally
Outstanding
Rates
Issued
End of Year
4.00-5.00 % $
7,190,000 $
7,075,000
3.25-4.00
20,800,000
18,795,000
2.00
3,505,000
2,805,000
$
31,495,000 $
28,675,000
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 $423,300 and $4,503,361, respectively.
During the year ended June 30, 2023, 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 $33,417,163.
74
Page 1475 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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.
The Sales Tax Increment Revenue Bonds will be paid from increased sales tax revenues paid to the City by
the Iowa Department of Revenue per the Iowa Code and related regulations and the Flood Mitigation grant
award program.
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year
June 30
2024
2025
2026
2027
2028
2029-2033
Total
Business -type Activities
Principal
Interest
$ 3,515,000 $
1,075,600
3,655,000
943,169
3,740,000
806,381
3,895,000
670,019
4,035,000
533,694
9,835,000
713,300
$ 28,675,000 $
4,742,163
75
Page 1476 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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 $57,433 of SRF debt in 2023 as part of the sanitary sewer master plan, $26,388
for Auburn and Custer project, $191,000 for the High Strength Waste Improvement project, $140,544 for
the Granger Creek/Twin Ridge project, $138,430 for the Catfish Creek watershed stabilization project,
$896,261 for the Upper Bee Branch Culverts, $5,000 for the Roosevelt Tower project, and $196,097 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, 2023, are as follows:
Final
Date
Maturity
hiterest
Amount
Purpose
Authorized
Date
Rates
Authorized
Clear Wells
10/18/2007
6/l/2028
2.00 % $
1,037,000
West 32nd St. Detention Basin
1/14/2009
6/l/2028
2.00
1,847,000
North Catfish Creek Stormwater
1/13/2010
6/1/1930
2.00
800,000
North Catfish Creek Sewer
1/13/2010
6/1/1930
2.00
912,000
Water Meter Replacement
2/12/2010
6/1/1930
2.00
7,676,000
Water and Resource Recovery Center
8/18/2010
6/1/1939
2.00
74,285,000
Bee Branch Stormwater
10/27/2010
6/1/1941
2.00
7,850,000
Cogeneration
5/17/2013
6/1/1933
2.00
3,048,000
Meter Replacement Sewer
5/31/2013
6/1/1930
2.00
3,058,000
Lower Bee Branch Stormwater
2/28/2014
6/1/1933
2.00
1,029,000
Bee Branch Stormwater
4/30/2021
6/1/1937
1.43
22,138,000
CIWA Purchase
7/7/2017
6/1/1937
2.00
10,198,000
Roosevelt Tower
9/22/2017
6/1/1940
2.00
4,400,000
Kerper Blvd
3/8/2019
6/1/1938
0.75
2,992,000
Bee Branch Culverts
6/7/2019
6/1/1940
2.00
16,382,000
Catfish and Granger Creek Sanitary
3/19/2021
3/19/2024
-
350,000
Auburn/Custer/CenterPl/Hawthome
3/19/2021
3/19/2024
160,000
Sanitary Sewer Master Plan
3/19/2021
3/19/2024
970,000
Granger Creek/ Twin Ridge
1/7/2022
1/7/2025
465,000
Water Webber Extension
1/7/2022
1/7/2025
1,570,000
High Strength Waste
7/7/2023
7/7/2045
290,000
$
161,457,000
Amount
Outstanding
Current
End of Year
Portion
$ 285,000 $
53,000
573,000
107,000
339,000
44,000
387,000
50,000
1,515,000
169,000
50,195,000
2,693,000
5,570,000
233,000
1,675,000
153,000
1,515,000
169,000
185,000
17,000
18,274,083
1,210,000
6,659,000
511,000
3,840,000
186,000
2,034,538
126,000
14,314,000
716,000
349,709
-
58,935
-
116,985
147,821
296,354
191,000
-
$ 108,521,425 $
6,437,000
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.
76
Page 1477 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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 $800,000. This line of credit was issued to finance
the North Catfish Creek improvements by the Stormwater Fund. The interest rate for this line of credit is
2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 2030.The note
payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa Finance Authority
and; therefore, constitutes direct borrowing.
On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water
Program Revolving Loan Fund for a line of credit up to $912,000. This line of credit was issued to finance
the North Catfish Creek improvements by the Sanitary Sewer Fund. The interest rate for this line of credit
is 2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 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.
77
Page 1478 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 Restoration 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 million 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.
78
Page 1479 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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.
On July 7, 2023 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 $290,000. This line of credit
was issued to finance the planning and design of the High Strength Waste Improvement project by the
Sanitary Sewer Fund. The interest rate for this line of credit is 2.0%. The line of credit matures in Fiscal
Year 2046. 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.
79
Page 1480 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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
2024
$ 6,437,000 $
2,102,247
2025
6,612,914
1,997,030
2026
6,750,712
1,869,016
2027
6,896,3 87
1,742,096
2028
7,040,372
1,608,433
2029-2033
35,177,397
5,990,242
2034-2038
31,935,848
2,629,903
2039-2043
7,578,959
241,677
2044 - 2048
91,836
2,342
Total
$ 108,521,425 $
18,182,986
At June 30, 2023, the City of Dubuque had $4,229,436 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 2024 and 2025. 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,
2023, are as follows:
Amount
Amount
Date of
Interest Originally
Outstanding
Current
Purpose
Issue Maturity Dates
Rates Issued
End of Year
Portion
Iowa Finance Authority
8/26/2011 06/01/20-06/01/30
3.0 $ 4,500,000 $
2,760,157 $
219,674
Bowling & Beyond Inc.
10/15/2012 12/04/12-12/04/32
- 1,000,000
450,000
50,000
$ 5,500,000
3,210,157 $
269,674
On August 26, 2011, the City issued $4.5 million loan. Interest is payable each December 1 and June 1 at
a rate of 3.00%. Principal payments are due each December 1 and June 1 and range from $82,922 to
$2,582,540 with final maturity in 2030.
The proceeds were used to pay costs of funding workforce housing assistance loans to private developers
constructing improvements and rehabilitating historic buildings for residential and commercial use in the
Greater Downtown Urban Renewal Area. The debt is owned by the Iowa Finance Authority and; therefore,
constitutes a direct borrowing.
On October 15, 2012, the City terminated the leases with Bowling & Beyond Dubuque, Inc. and entered
into a lease buyout agreement. The purchase price is $1.0 million. There is no interest. Principal payments
are due each July 25 in the amount of $50,000 with final maturity in 2032. The debt is owned by Michael
K. Schmidt and; therefore, constitutes a direct borrowing.
:C
Page 1481 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 7 - LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year
June 30
2024
2025
2026
2027
2028
2029-2033
Total
Principal
$ 269,674
276,314
283,154
290,202
297,462
1,793,351
$ 3,210,157
Governmental Activities
Interest
$ 81,170
74,530
67,690
60,642
53,382
84,100
$ 421,514
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, 2023 in which the City is a lessee:
Purpose
Governmental Activities
Building Leases
Business -Type Activities
Building Leases
Amount
Date of Maturity Discount Initial Outstanding Current
Issue Dates Rate Liability End of Year Portion
7/1/2021 6/30/2031 1.57% $ 208,093 $ 164,142 $ 22,354
7/1/2021 7/31/2032 3.03% $ 267,361 $ 224,936 $ 21,833
Annual debt service requirements to maturity for leases payable are as follow:
Fiscal Year
June 30
2024
2025
2025
2026
2027
2028 - 2032
Governmental Activities
Principal
$ 22,354
22,714
23,074
23,438
23,807
48,755
$ 164,142
Interest
$ 2,423
2,063
1,704
1,339
971
802
9,302
Business -Type Activities
Principal
Interest
$ 21,833 $
6,533
22,518
5,844
23,210
5,152
23,923
4,439
24,649
3,714
108,803
7,011
$ 224,936 $
32,693
81
Page 1482 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 7 - LONG-TERM DEBT (continued)
Subscriptions Payable. The City has entered into subscription agreements for various computer software
programs. The following is a recap of subscriptions as of June 30, 2023:
Purpose
Governmental Activities
Software
Software
Software
Software
Software
Software
Software
Software
Software
Business -Type Activities
Software
Date of Maturity Discount
Issue Dates Rate
Amount
Initial Outstanding Current
Liability End of Year Portion
7/l/2022
7/l/2025
3.00% $
28,262 $
21,138 $
8,891
10/1/2022
9/30/2025
3.87%
22,235
14,535
7,127
7/10/2022
7/9/2025
3.86%
24,865
16,255
7,971
6/l/2023
5/31/2026
5.08%
128,227
86,599
40,443
7/l/2022
4/30/2026
3.88%
1,884,766
980,190
480,551
7/l/2022
5/11/2027
3.89%
148,802
95,043
28,838
10/1/2022
9/30/2027
3.90%
350,570
301,242
66,442
6/l/2023
5/31/2028
4.83%
257,194
252,379
46,580
7/l/2022
11/30/2024
3.84%
76,889
31,518
31,518
$
2,921,810 $
1,798,899 $
718,361
7/l/2022
11/30/2024
3.84% $
76,890 $
11,549 $
11,549
Annual debt service requirements to maturity for subscriptions payable are as follow:
Fiscal Year
Governmental Activities
Business -Type Activities
June 30
Principal Interest
Principal Interest
2024
$ 718,361 $ 84,000 $
11,549 $ 451
2025
723,371 42,553
- -
2025
157,762 13,014
- -
2026
128,565 6,256
- -
2027
70,840 1,385
- -
$ 1,798,899 $ 147,208 $
11,549 $ 451
82
Page 1483 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2023, was as
follows:
Balance
Beginning of Year
Balance End
Due Within
(as restated)
Additions
Reductions
of Year
One Year
Governmental activities:
General obligation bonds
$ 46,097,522 $
-
$ (3,435,307)
$
42,662,215 $
3,368,873
Unaccreted premium
1,228,633
-
(176,423)
1,052,210
-
Total general obligation bonds
47,326,155
-
(3,611,730)
43,714,425
3,368,873
Tax increment financing bonds
17,760,000
-
(680,000)
17,080,000
730,000
Unamortized discounts
(105,562)
-
11,338
(94,224)
-
Total tax increment financing bonds
17,654,438
-
(668,662)
16,985,776
730,000
Loans payable
3,473,387
-
(263,230)
3,210,157
269,674
Lease payable
208,537
-
(44,395)
164,142
22,354
Subscriptions payable
2,110,456
811,353
(1,122,910)
1,798,899
718,361
Compensated absences
7,014,576
4,362,033
(4,088,814)
7,287,795
688,647
Total governmental activities
$ 77,787,549 $
5,173,386
$ (9,799,741)
$
73,161,194 $
5,797,909
Business -type activities:
General obligation bonds
$ 29,730,040 $
-
$ (3,119,674)
$
26,610,366 $
3,061,127
Unaccreted premium
859,689
-
(156,151)
703,538
-
Unamortized discounts
(12,733)
-
1,820
(10,913)
-
Total general obligation bonds
30,576,996
-
(3,274,005)
27,302,991
3,061,127
Revenue bonds
31,155,000
-
(2,480,000)
28,675,000
3,515,000
Unaccreted premium
560,552
-
(105,754)
454,798
-
Unamortized discounts
(37,893)
-
4,210
(33,683)
-
Total revenue bonds
31,677,659
-
(2,581,544)
29,096,115
3,515,000
Notes payable
113,108,033
1,651,152
(6,237,760)
108,521,425
6,437,000
Loans payable
54,580
-
(54,580)
-
-
Lease payable
251,803
-
(26,867)
224,936
21,833
Subscriptions payable
-
21,549
(10,000)
11,549
11,549
Compensated absences
838,075
457,146
(469,593)
825,628
71,677
Total business -type activities
$ 176,507,146 $
2,129,847
$ (12,654,349)
$
165,982,644 $
13,118,186
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
83
Page 1484 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 7 — LONG-TERM DEBT (continued)
Legal Debt Margin Calculation.
Estimated actual value $ 5,185,945,799
Debt limit - 5% of total actual valuation 259,297,290
Debt applicable to limit (93,412,875)
Legal debt margin $ 165,884,415
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, 2023 is as follows:
Purpose
Landfill Facility
Landfill Facility
Interest
Date of Issue Maturity Date Rate
12/30/2014 06/01/16-06/01/34 2.0 - 4.0%
12/28/2016 06/01/17-06/01/36 3.0%
Amount
Amount
Originally
Outstanding
Issued
End of Year
$ 4,500,000 $
2,900,000
5,100,000
3,710,000
$ 9,600,000 $
6,610,000
Annual debt service requirements to maturity of the general obligation bond is as follows:
Fiscal Year
June 30
Principal
Interest
2024
$ 465,000 $
198,609
2025
475,000
186,065
2026
490,000
172,965
2027
505,000
158,865
2028
520,000
144,328
2029-2033
2,860,000
480,055
2034-2036
1,295,000
74,760
Total
$ 6,610,000 $
1,415,647
0
Page 1485 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long -Term Liabilities. Long term liability activity for the year ended June 30, 2023 is as
follows:
Balance
Beginning of Year
Balance
Due Within
(as restated)
Additions Reductions
End of Year
One Year
General obligation bond $ 7,060,000 $
- $ (450,000)
$ 6,610,000 $
465,000
Unaccreted premium 178,958
- (12,857)
166,101
-
Total general obligation bond $ 7,238,958 $
- $ (462,857)
$ 6,776,101 $
465,000
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 $471,617 in the Health Insurance Reserve Fund
and $703,944 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.
85
Page 1486 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 — RISK MANAGEMENT (continued)
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, 2023 and 2022, are summarized as follows:
Liabilities at June 30, 2021
Claims and changes in estimates during fiscal year 2022
Claim payments
Liabilities at June 30, 2022
Claims and changes in estimates during fiscal year 2023
Claim payments
Liabilities at June 30, 2023
Health
Insurance
Reserve Fund
1,094,417
7,797,669
(8,018,884)
873,202
7,473,136
(7,874,721)
471,617
A portion of the Workers' Compensation Reserve is reported in the General Fund.
Workers'
Compensation
Reserve Fund
1,079,779
1,114,182
(872,777)
1,321,184
561,620
(1,178,860)
703,944
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, 2023, were $1,429,332.
Page 1487 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 8 — RISK MANAGEMENT (continued)
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, 2023, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool's inception.
Members agree to continue membership in the Pool 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 its members is applied to determine the amount (if any) to be refunded to the withdrawing
member.
W1111 I *WolfJu Iu I M Mu l oleo lfy\►11ZK130I WE" oleo 8 0 El :31 N 11131
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, 2023.
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, 2023. The City has additional commitments for signed construction contracts
of $486,394 as of June 30, 2023. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
87
Page 1488 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 $5,874,502 reported as of June 30, 2023 was measured
as of June 30, 2023 (the measurement date), and was determined by an actuarial valuation as of June 30,
2022, which was rolled forward to June 30, 2023. The City's proportion is based on the number of
employees in the plan. The City's proportion was 98.50% as of June 30, 2023.
Changes in the Total OPEB Liability
Total OPEB Liability beginning of year
Changes for the year:
Service cost
Interest
Other changes
Changes in experience
Changes in assumptions
Benefit payments
Net Changes
Total OPEB Liability end of year
Total OPEB
Liability
$ 5,827,804
214,747
230,459
(5,704)
0
(18,042)
(374,762)
46,698
$ 5,874,502
Page 1489 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Methods and Assumptions - The total OPEB liability in the June 30, 2023 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, 2023
Rates of salary increase
effective June 30, 2023
Discount rate
effective June 30, 2023
Healthcare cost trend rate
effective June 30, 2023
3.00% per annum
4.00% per annum,
including inflation
4.13 % 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 4.13% 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, 2023.
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, 2023 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 (3.13%) or 1% higher (5.13%) than the current discount rate.
1% Decrease (3.13%) Discount Rate (4.13%) 1% Increase (5.13%)
Total OPEB Liability $ 5,446,081 $ 5,874,502 $ 6,343,148
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.
Healthcare Cost
1% Decrease (5.00%) Trend Rate (6.00%) 1% Increase (7.00%)
Total OPEB Liability $ 5,309,019 $ 5,874,502 $ 6,541,226
:•
Page 1490 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 10 — OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30, 2023
the City recognized OPEB expense of $398,644. At June 30, 2023 the City reported deferred outflows of
resources related to OPEB from the following sources:
Changes in Experience
Changes in Assumptions
Change in Proportion
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 217,140 $
147,507
409,814
856,767
142,923
116,632
$ 769,877 $
1,120,906
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
2024
2025
2026
2027
2028
Thereafter
Net Deferred
Outflows (Inflows)
of Resources
$ (42,595)
(42,595)
(42,595)
(44,378)
(67,268)
(111,598)
$ (351,029)
Dubuque Metropolitan Area Solid Waste Agency Specific (DMASWA) OPEB Disclosures
Total OPEB Liability- DMASWA OPEB liability of $89,459 was measured as of June 30, 2023 was
measured as of June 30, 2023 (the measurement date), and was determined by an actuarial valuation
as of June 30, 2022, which was rolled forward to June 30, 2023.. The Agency's portion is based on
the number of employees in the plan. The Agency's portion was 1.50% as of June 30, 2023.
Total OPEB Liability beginning of year
Changes for the year:
Service Cost
Interest
Changes in experience
Other Changes
Changes in assumptions
Benefit payments
Net Changes
Total OPEB Liability end of year
Total OPEB
Liability
$ 82,958
3,270
3,510
0
5,703
(275)
(5,707)
6,501
$ 89,459
a
Page 1491 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 (3.13%) or 1% higher (5.13%) than the current
discount rate.
1% Decrease (3.13%) Discount Rate (4.13%) 1% Increase (5.13%)
Total OPEB Liability $ 82,935 $ 89,459 $ 96,596
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.
Healthcare Cost
1% Decrease (5.00%) Trend Rate (6.00%) 1% Increase (7.00%)
Total OPEB Liability $ 80,848 $ 89,459 $ 99,612
OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30, 2023
the DMASWA recognized OPEB expense of $6,071. At June 30, 2023 the DMASWA reported deferred
outflows of resources and deferred inflows of resources related to OPEB from the following sources:
Changes in Experience
Changes in Assumptions
Change in Proportion
Deferred Outflows
of Resources
$ 3,307
6,241
5,371
$ 14,919
Deferred Inflows
of Resources
$ 2,246
13,047
31,662
$ 46.955
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:
Net Deferred
Outflows (Inflows)
Year Ending June 30
of Resources
2024
$ (4,657)
2025
(4,657)
2026
(4,657)
2027
(4,684)
2028
(5,033)
Thereafter
(8,348)
$ (32,036)
91
Page 1492 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 sections outline the pension related disclosures
for each pension of both entities. The aggregate increase in pension expense for the period associated with
the net pension liability for all plans is $2,114,014 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
$ 12,640,114 $
24,280,533 $
36,920,647
Deferred Inflows
2,824,111
2,236,700
5,060,811
Deferred Outflows
4,325,966
5,649,600
9,975,566
Pension Expense (Decrease)
(181,483)
2,295,497
2,114,014
Iowa Public Employees Retirement System IPERS
Plan Description — IPERS membership is mandatory for employees of the City, except for those covered
by another retirement system. Employees of the City are provided with pensions through a cost -sharing
multiple employer defined benefit pension plan administered by Iowa Public Employees' Retirement
System (IPERS). IPERS issues a stand-alone financial report which is available to the public by mail at
7401 Register Drive P.O. Box 9117, Des Moines, Iowa 50306-9117 or at www.ipers.org.
IPERS benefits are established under Iowa Code chapter 97B and the administrative rules thereunder.
Chapter 97B and the administrative rules are the official plan documents. The following brief description
is provided for general informational purposes only. Refer to the plan documents for more information.
Pension Benefits — A Regular member may retire at normal retirement age and receive monthly benefits
without an early -retirement reduction. Normal retirement age is age 65, any time 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.
92
Page 1493 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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 2023, 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, 2023 were $2,879,498. The Dubuque
Metropolitan Area Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2023
were $71,555.
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, 2023, the City reported a liability of $12,640,114 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022,
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, 2022,
the City's collective proportion was 0.318463% which was a decrease of 0.03723% from its proportion
measured as of June 30, 2021. The City allocations to governmental and business -type activities according
to the proportionate share of contributions in the prior year.
93
Page 1494 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11— EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2023, the City recognized a reduction of pension benefit of $181,483. At June
30, 2023, the City reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual
earnings on IPERS' investments
Changes in proportion and differences between
City's contributions and City's proportionate share
of contributions
City contributions subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
$ 560,335 $ 173,141
10,725 301
1,353,084
875,408 1,297,585
2,879,498
$ 4,325,966 $ 2,824,111
The $2,879,498 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, 2024. 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
2024
2025
2026
2027
2028
Net Deferred
Outflows (Inflows)
of Resources
$ (1,477,479)
(1,046,388)
(1,620,452)
2,724,760
41,916
$ (1,377,643)
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.
Page 1495 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11— EMPLOYEE PENSION PLANS (continued)
City's proportionate share of
the net pension liability (asset):
1 % Discount 1 %
Decrease Rate Increase
6.00% 7.00% 8.00%
24,055,210 $ 12,640,114 $ 3,090,357
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, 2023, the DMASWA reported a liability of $271,136 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022,
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, 2022, the DMASWA's collective proportion was 0.006831% which
was an increase of 0.000545% from its proportion measured as of June 30, 2021.
For the year ended June 30, 2023, the DMASWA recognized pension expense of $3,893. At June 30, 2023,
the DMASWA reported deferred outflows of resources and deferred inflows of resources related to
pensions from the following sources:
Differences between expected and actual experience
Changes of assumptions
Net difference between projected and actual
earnings on IPERS' investments
Net changes in proportion and differences between
Agency's contributions and Agency's proportionate share
of contributions
Agency contributions subsequent to the measurement date
Total
Deferred Outflows Deferred Inflows
of Resources of Resources
12,019 $ 3,714
230
29,024
62,642
71,555
$ 83,804 $ 95,387
95
Page 1496 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11— EMPLOYEE PENSION PLANS (continued)
The $71,555 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, 2024. 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
2024
2025
2026
2027
2028
Total
$ (89,516)
(63,870)
(99,311)
166,989
2,570
$ (83,138)
Sensitivitv of the Aaencv's Proportionate Share of the Net Pension Liabilitv to Changes 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.
Agency's proportionate share of
the net pension liability (asset):
1 % Discount 1 %
Decrease Rate Increase
6.00% 7.00% 8.00%
$ 505,159 $ 271,136 $ 64,897
There were no non -employer contributing entities at IPERS.
Actuarial Assumptions - The total pension liability in the June 30, 2022, 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
Page 1497 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11— EMPLOYEE PENSION PLANS (continued)
The actuarial assumptions used in the June 30, 2022 valuation were based on the results of an actuarial
experience study covering the four-year period ending June 30, 2021 (see report dated June 16, 2022).
Mortality rates are based on the PubG-2010 Generational Mortality Tables, with age setbacks and age set
forwards as well as other adjustments based on different membership groups. Future mortality
improvements are anticipated using Projection Scale MP-2021. Different adjustments apply to pre -
retirement, post -retirement, beneficiary and post -disability mortality tables.
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 Expecte,
Asset Class
Allocation
Real Rate of Return
Domestic equity
22.00 %
3.57%
International equity
17.50
4.79
Global smart beta equity
6.00
4.16
Core plus fixed income
20.00
1.66
Public credit
4.00
3.77
Cash
1.00
0.77
Private equity
13.00
7.57
Private real assets
8.50
3.55
Private credit
8.00
3.63
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 assumed 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, 2023, the City reported payables to the defined benefit pension plan of
$57,234 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.
97
Page 1498 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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.
Page 1499 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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, 2023.
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 23.90% for the year ended June 30, 2023.
The City's contributions to MFPRSI for the year ended June 30, 2023 was $3,946,616.
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, 2023.
Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of
Resources Related to Pensions - At June 30, 2023, the City reported a liability of $24,280,533 for its
proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2022,
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, 2022, the City's proportion was .043237% which was a decrease of 0.001132% from it proportions
measured as of June 30, 2021. This is funded by governmental activities only.
Page 1500 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11— EMPLOYEE PENSION PLANS (continued)
For the year ended June 30, 2023, the City recognized pension expense of $2,295,497. At June 30, 2023,
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
$ 1,507,772 $ 31,218
68,110 -
- 287,682
127,102 1,917,800
3,946,616 -
$ 5,649,600 $ 2,236,700
The $3,946,616 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, 2024. Amounts reported as deferred outflows of resources and deferred
inflows of resources related to pensions will be recognized in pension expense as follows:
Net Deferred
Outflows (Inflows)
Year Ended June 30
of Resources
2024
$ (474,125)
2025
(964,821)
2026
(2,187,466)
2027
3,076,417
2028
16,279
$ (533,716)
100
Page 1501 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 11— EMPLOYEE PENSION PLANS (continued)
Actuarial Assumptions - The total pension liability in the June 30, 2022 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, 2022 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:
Long -Term Expecte,
Asset Class Real Rate of Return
Broad Fixed Income
4.9%
Broad U.S. Equity
7.1
Global Equity
7.2
Broad Non -US Equity
7.4
Managed Futures
5.2
Core Real Estate
6.8
Opportunistic Real Estate
11.1
Global Infrastructure
6.9
Private Credit
10.1
Private Equity
12.1
101
Page 1502 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
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.
Sensitive . of City'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.
City's proportionate share of
the net pension liability (asset):
1 % Discount 1 %
Decrease Rate Increase
-6.50% -7.50% -8.50%
43,943,238 $ 24,280,533 $ 7,989,713
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, 2023, City of Dubuque, Iowa reported payables to the defined benefit
pension plan of $78,095 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.
102
Page 1503 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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:
Closure
Post -closure care
Totals
2023
4,542,350
2,649,812
$ 7,192,162
The total closure and post -closure care costs for the DMASWA has been estimated at approximately
$7,192,162 as of June 30, 2023, and the portion of the liability, that has been recognized is $3,610,397.
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 $5,476,406 as of June 30, 2023. The Agency will recognize the remaining estimated cost of closure
and post closure care of $3,581,765 over the estimated remaining life of 16 years as the remaining capacity
is filled.
103
Page 1504 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
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, 2023 in which the City is a lessor:
Governmental Activities:
Lease Type
Lease Term
Beginning Ending
Discount
Rate
Original
Balance
Balance as of
June 30, 2023
Due Within
One Year
Rent
Revenue
Interest
Revenue
Land
7/1/2021
7/l/2055
1.58%-3.57% $
23,120,733 $
21,041,016
$ 1,084,868 $
1,221,381 $
724,443
Building
7/1/2021
6/30/2056
1.72%-3.57%
10,171,479
9,457,308
343,941
491,616
336,941
Other
7/1/2021
11/30/2038
3.4
194,951
172,041
8,237
11,422
5,943
$
33,487,163 $
30,670,365
$ 1,437,046 $
1,724,419 $
1,067,327
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
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.
The City recognized revenue of $884,913 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 Ending
Total to be paid
6/30/2024
$ 795,044
6/30/2025
485,798
6/30/2026
317,360
6/30/2027
287,489
6/30/2028
287,489
Thereafter
6,562,748
$ 8,735,928
Business -Type Activities:
Lease Term
Discount
Original
Balance as of
Due Within
Rent
Interest
Lease Type
Beginning Ending
Rate
Balance
June 30,2023
One Year
Revenue
Revenue
Land
7/1/2021 2/28/2038
1.85%-3.39% $
889,248 $
703,009
$ 90,807 $
155,269 $
24,343
Building
7/1/2021 6/30/2023
1.74%
131,606
-
-
65,803
544
$
1,020,854 $
703,009
$ 90,807 $
221,072 $
24,887
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.
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 $39,747 is outstanding as of June 30, 2023. The current portion is $39,747. Rent and
interest revenue on the lease for the year ending June 30, 2023 was $46,796 and $1,087, respectively. The
discount rate is 1.91%.
104
Page 1505 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 14 — SUBSEQUENT EVENTS
On September 18, 2023, a public hearing was held on a $1,000,000 Sewer Revenue Capital Loan
Anticipation Project SRF Note. The loan funds will be used to pay costs of the planning and design of the
improvements to various elements of the existing Cedar Street Lift Station, Terminal Street Lift Station,
and the associated force mains between the two and to the City's public wastewater treatment facility. The
Sewer Revenue Capital Loan Anticipation Project Notes will have an interest rate of 0 percent per annum
for up to three years and have not been issued.
On September 18, 2023, a public hearing was held on a $430,000 Sewer Revenue Capital Loan Anticipation
Project SRF Note. The loan funds will be used to pay costs of planning and design of the improvements on
Laurel Street, on Grove Terrace, on other streets as determined necessary, and the inspection and condition
assessment of other aging sewer infrastructure. The State Revolving Capital Loan Notes will have an
interest rate of 0 percent per annum for up to three years and have not been issued.
NOTE 15 — 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. 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.
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.
105
Page 1506 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
DUNE 30, 2023
NOTE 15 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
GASB Statement No. 102, Certain Risk Disclosures will improve financial reporting by providing users of
financial statements with essential information that currently is not often provided. The disclosures will
provide users with timely information regarding certain concentrations or constraints and related events
that have occurred or have begun to occur that make a government vulnerable to a substantial impact. As a
result, users will have better information with which to understand and anticipate certain risks to a
government's financial condition. The statement will be effective for the City with its year ending June 30,
2025.
GASB Statement No. 103, Financial Reporting Model Improvements will improve key components of the
financial reporting model to enhance its effectiveness in providing information that is essential for decision
making and assessing a government's accountability. This statement also addresses certain application
issues. 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 16 — 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, 2023, the City abated $12,802,251 of property tax under the urban renewal and
economic development projects.
106
Page 1507 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2023
NOTE 17 — ADOPTION OF NEW STANDARD
As of July 1, 2022 the City adopted GASB Statement No. 96, Subscription -Based Information Technology
Arrangements (SBITA). The objective of this Statement is to better meet the information of financial
statement users by improving accounting and financial reporting for SBITAs by governments. The City
restated the following balances as of July 1, 2022:
Governmental Activities
Subscription
Assets
Subscription
Payable
$ 2,110,456 $ 2,110,456
The effect of implementing this Statement did not result in a restatement of beginning net position/fund
balance as the city did not have SBITAs under previous guidance.
107
Page 1508 of 1713
Required Supplementary Information
June 30, 2023
City of Dubuque, Iowa
Page 1509 of 1713
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, 2023
RECEIPTS
Property tax
Tax increment financing
Other City tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for fees and service
Special assessments
Miscellaneous
Total Receipts
EXPENDITURES
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business -type activities
Total Expenditures
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES, NET
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
BALANCE, BEGINNING OF YEAR
BALANCE, ENDING OF YEAR
See Notes to Required Supplementary Information.
Actual
$ 26,230,795
12,802,251
22,998,721
1,971,587
18,862,137
40,864,979
43,780,650
235,024
14,591,524
182,337,668
34,247,064
15,349,486
992,669
15,060,300
16,122,859
13,007,080
8,944,963
31,939,806
65,156,356
200,820,583
(18,482,915)
Budgeted Amounts
Original Final
$ 25,574,621
12,965,223
23,115,778
2,030,903
17,047,376
49,737,162
51,581,648
184,524
8,686,423
190,923,658
34,578,299
14,734,385
1,071,888
15,151,001
16,743,027
12,657,367
11,764,376
47,526,473
66,990,253
221,217,069
(30,293,411)
$ 25,574,621
12,965,223
23,115,778
2,030,903
17,083,716
77,063,519
51,581,648
184,524
11,180,498
220,780,430
35,575,411
17,677,774
1,087,591
18,560,902
16,499,815
14,393,111
11,764,376
127,146,356
93,813,106
336,518,442
(115,738,012)
Final to Actual
Variance
$ 656,174
(162,972)
(117,057)
(59,316)
1,778,421
(36,198,540)
(7,800,998)
50,500
3,411,026
(38,442,762)
1,328,347
2,328,288
94,922
3,500,602
376,956
1,386,031
2,819,413
95,206,550
28,656,750
135,697,859
97,255,097
1,651,152 17,845,215 25,624,757 (23,973,605)
(16,831,763) (12,448,196) (90,113,255) 73,281,492
156,174,168 83,973,157 179,887,926 156,174,168
$ 139,342,405 $ 71,524,961 $ 89,774,671 $ 229,455,660
Page 1510 of 1713
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2023
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, 2023, was amended two times during the year to allow the
City to increase function expenditures by $115,301,373 primarily for the carry -forward of unfinished capital
improvement projects. During the year ended June 30, 2023, 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 $
182,337,668 $
(4,641,691) $
177,695,977 $
132,394,536 $
45,301,441 $
177,695,977
Expenditures/Expenses
200,820,583
(19,797,101)
181,023,482
129,751,119
41,578,799
171,329,918
Deficiency of Receipts/Revenue
Under Expenditures/Expenses
(18,482,915)
15,155,410
(3,327,505)
2,643,417
3,722,642
6,366,059
Other Financing Sources
1,651,152
20,496,515
22,147,667
(367,302)
12,821,405
12,454,103
Net
(16,831,763)
35,651,925
18,820,162
2,276,115
16,544,047
18,820,162
Balance, Beginning
Balance, Ending
156,174,168 196,573,217 352,747,385 98,239,621 254,507,764 352,747,385
139,342,405 $ 232,225,142 $ 371,567,547 $ 100,515,736 $ 271,051,811 $ 371,567,547
109
Page 1511 of 1713
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
2023 2022 2021 2020 2019 2018 2017 2016 2015
City's proportion of the net pension liability (asset)
0.31846%
0.31474%
0.33061 %
0.33194%
0.33329%
0.33490%
0.34275%
0.35135%
0.37035%
City's proportionate share of the net pension liability
$ 12,640 $
441 $
23,063 $
19,350 $
21,091 $
22,309 $
21,570 $
17,358 $
14,688
City's covered payroll
$ 26,888 $
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 47.01% 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 total
pension liability 91.40% 100.81% 82.90% 85.45% 83.62% 82.21% 81.82% 85.19% 87.61%
*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.
110
Page 1512 of 1713
CITY OF DUBUQUE, IOWA
SCHEDULE OF THE CITY CONTRIBUTION
IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM
LAST 10 FISCAL YEARS
(IN THOUSANDS)
Required Supplementary Information
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Statutorily required contribution $ 2,879 S 2,535 $ 2,407 $ 2,460 S 2,403 S 2,235 $ 2,229 S 2,196 $ 2,151 $ 2,164
Contributions in relation to the
statutorily required contribution $ (2,879) $ (2,535) $ (2,407) $ (2,460) $ (2,403) $ (2,235) $ (2,229) $ (2,196) $ (2,151) $ (2,164)
Contribution deficiency (excess) - - - - - - - - - -
City's covered payroll $ 30,527 $ 26,888 $ 25,496 $ 26,048 $ 25,423 $ 25,024 $ 24,961 $ 24,597 $ 24,039 $ 24,210
Contributions as a percentage of
covered payroll 9.43% 9.43% 9.44% 9.44% 9.45% 8.93% 8.93% 8.93% 8.95% 8.94%
111
Page 1513 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
IOWA PUBLIC EMPLOYEES' RETIREMENT SYSTEMS
YEAR ENDED JUNE 30. 2023
Changes of benefit terms:
There are no significant changes in benefit terms.
Changes of assumption:
The 2022 valuation implemented the following refinements:
• Mortality assumption was changed to the family of PubG-2010 Mortality Tables for all
groups, with age setbacks and set forwards, as well as other adjustments. Future mortality
improvements are modeled using Scale MP-2021.
• Retirement rates were adjusted to partially reflect observed experience for regular member
only.
• Disability rates were lowered for Regular members only.
• Termination rates were adjusted to partially reflect observed experience for all groups.
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.
112
Page 1514 of 1713
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
2023
2022
2021
2020
2019
2018
2017
2016
2015
City's proportion of the net pension liability (asset)
4.32%
0.44%
4.73%
4.69%
4.86%
4.78%
4.95%
4.99%
5.08%
City's proportionate share of the net pension liability
$ 24,281 $
9,964
$ 37,737
$ 30,775
$ 28,960
$ 28,062
$ 30,971
$ 23,423
$ 18,410
City's covered payroll
$ 14,603 $
14,418
$ 14,879
$ 14,203
$ 14,118
$ 13,552
$ 13,423
$ 13,052
$ 12,968
City's proportionate share of the net pension liability
as a percentage of its covered payroll
166.27%
69.11%
253.63%
216.68%
205.13%
207.07%
230.73%
179.46%
141.96%
Plan fiduciary net position as a percentage of the
total pension liability
84.62%
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.
113
Page 1515 of 1713
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
2023 2022 2021 2020 2019 2018 2017 2016 2015 2014
Statutorily required contribution
S
3,947 $
3,823 $
3,649 $
3,632 $
3,696 $
3,626 $
3,513 $
3,727 $
3,969 S
3,906
Contributions in relation to the
statutorily required contribution
$
(3,947) $
(3,823) $
(3,649) $
(3,632) $
(3,696) $
(3,626) $
(3,513) $
(3,727) $
(3,969) $
(3,906)
Contribution deficiency (excess)
$
- $
- $
- $
- $
- $
- $
- $
- $
- $
-
City's covered payroll
$
16,513 $
14,603 $
14,418 $
14,879 $
14,203 $
14,118 $
13,552 $
13,423 $
13,052 $
12,968
Contributions as a percentage of
covered payroll
23.90%
26.18%
25.31%
24.41%
26.02%
25.68%
25.92%
27.77%
30.41%
30.12%
114
Page 1516 of 1713
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -- PENSION LIABILITY
MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA
YEAR ENDED JUNE 30, 2023
Changes of benefit terms:
There were no significant changes of benefit terms.
Changes of assumptions
The 2022, 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 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 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.
115
Page 1517 of 1713
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
2023
2022
2021
2020
2019
2018
$ 214,747 $
306,094 $
303,146 $
288,187 $
296,597 $
277,469
230,459
134,580
152,598
165,496
172,576
172,219
(18,042)
(887,322)
254,038
(19,982)
85,951
138,371
-
281,561
13
(242,263)
-
-
(5,704)
42,042
(11,228)
(49,950)
2,582
58,589
(374,762)
(360,953)
(269,461)
(380,158)
(452,573)
(474,856)
46,698
(483,998)
429,106
(238,670)
105,133
171,792
5,827,804
6,311,802
5,882,696
6,121,366
6,016,233
5,844,441
$ 5,874,502 $
5,827,804 $
6,311,802 $
5,882,696 $
6,121,366 $
6,016,233
$ 37,635,156 $ 42,133,307 $ 41,593,187 $ 34,543,167 $ 39,626,000 $ 39,782,000
15.61% 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.
116
Page 1518 of 1713
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 1519 of 1713
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 maintenance.
Page 1520 of 1713
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.
Page 1521 of 1713
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Special Revenue Funds
Road
Section
Use
VIII Employee
Special
Tax
Housing Benefits
Assessments
ASSETS
Cash and investments
$ 8,325,195 $
364,051 $ 9,724 $
Receivables
Property tax
-
Delinquent
- 17,191
Succeeding year
-
2,452,469
Accounts and other
3,012
Special assessments
-
- -
664,864
Accrued interest
2,680
-
Notes
-
-
Intergovernmental
675,316
Inventories
255,364
-
Prepaid items
28,907
249
Restricted cash and investments
-
464,584 -
-
Total Assets
9,287,794
831,564 2,479,384
664,864
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
669,896
1,359
Accrued payroll
31,620
11,462
Due to other funds
-
-
Total Liabilities
701,516
12,821
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax
2,452,469
-
Special assessments
-
-
652,096
Grants
4,750
-
-
Other
-
7,937
-
Total Deferred Inflows of Resources
7750
2,460,406
652,096
FUND BALANCES
Nonspendable:
Endowment corpus
-
Inventory
255,364
Prepaid items
28,907
249
Restricted:
Endowments
-
-
Library
Police
Veterans
-
Capital improvements
8,297,257
Franchise agreement
-
-
Special assessments
12,768
Iowa Finance Authority Trust
-
-
Community programs
818,494
-
Employee benefits
-
18,978
Committed, capital improvements
-
-
-
Total Fund Balances
8,581,528
818,743
18,978
12,768
Total Liabilities, Deferred Inflows of Resources
and Fund Balances
$ 9,287,794 $
831,564 $
2,479,384 $
664,864
117
Page 1522 of 1713
Special Revenue Funds
Library Police
Expendable Expendable IFA
Cable Gifts Gifts Veteran's Housing Airport
TV Trust Trust Memorial Trust Construction
$ 473,319 $ 1,122,094 $ 8,824 $ 201,640 $ 700,891 $ 4,673
EXHIBIT A-1
Capital Projects Funds
Sales
General Tax
Construction Construction
$ 3,181 $
116,375
4,656 7,756
61 - 2,734
1,861
- -
- 1,117,082 -
23,076 -
47,481 635,147
- 180,768
-
- -
243,965 -
23,599
-
- -
- -
- - - 1,269,785
3,006,435 4,130,769
617,949 1,129,850
8,885 201,640 1,865,454 1,912,339
3,278,518 4,311,537
2,995 - 352 117 458,020 75,025 576,936
6,277 613 - 334 - 3,330 176
- - - - 878,965 1,406,173 560,471
9,272 613 352 451 1,336,985 1,484,528 1,137,583
365,466
365,466
- 243,965
23,599 -
1,129,237 -
- 8,885 -
- 201,288 - - -
- - 209,888 1,550,025 2,078,909
585,078 - - -
1,865,003
- - - - - - 1,095,045
608,677 1,129,237 8,885 201,288 1,865,003 209,888 1,793,990 3,173,954
$ 617,949 $ 1,129,850 $ 8,885 $ 201,640 $ 1,865,454 S 1,912,339 $ 3,278,518 $ 4,311,537
118
Page 1523 of 1713
CITY OF DUBUQUE, IOWA
EXHIBIT A-1
COMBINING BALANCE SHEET
(continued)
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2023
Capital Projects Funds
Permanent Funds
Ella
Total
Lyons
Library
Nonmajor
Street
Peony
Gifts
Governmental
Construction
Trail Trust
Trust
Funds
ASSETS
Cash and investments
$ 9,233,819 $
$
$ 20,447,411
Receivables
Property tax
Delinquent
-
17,191
Succeeding year
-
2,452,469
Accounts and other
32,483
151,870
Special assessments
-
664,864
Accrued interest
63,826
514
131
84,219
Notes
-
-
-
1,140,158
Intergovernmental
895,019
2,433,731
Inventories
-
499,329
Prepaid items
-
-
52,755
Restricted cash and investments
-
141,977
18,922
9,032,472
Total Assets
10.225.147
142.491
19.053
36.976.469
LIABILITIES, DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable
917,176
2,701,876
Accrued payroll
10,509
64,321
Due to other funds
-
2,845,609
Total Liabilities
927,685
5,611,806
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax
-
2,452,469
Special assessments
-
652,096
Grants
623,867
994,083
Other
-
7,937
Total Deferred Inflows of Resources
623,867
4,106,585
FUND BALANCES
Nonspendable:
Endowment corpus
57,412
12,000
69,412
Inventory
-
-
499,329
Long-term notes receivable
-
Prepaid items
-
-
52,755
Restricted:
Endowments
85,079
7,053
92,132
Library
-
-
1,129,237
Police
8,885
Veterans
-
201,288
Capital improvements
5,999,625
18,135,704
Franchise agreement
-
585,078
Special assessments
12,768
Iowa Finance Authority Trust
1,865,003
Community programs
818,494
Employee benefits
-
18,978
Committed, capital improvements
2,673,970
-
-
3,769,015
Total Fund Balances
8,673,595
142,491
19,053
27,258,078
Total Liabilities, Deferred Inflows of Resources
and Fund Balances $
10,225,147 $
142,491 $
19,053 $
36,976,469
119
Page 1524 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
REVENUES
Taxes
Licenses and permits
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
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
FUND BALANCES, ENDING
Special Revenue Funds
Road Section
Use VIII Employee Special
Tax Housing Benefits Assessments
$ - $ - $ 2,337,260 $ -
115,387
8,340,291 6,022,137 - -
7,364 - 893
140,494 92,157 - -
8,480,785 6,121,658 2,337,260 116,280
7,196,084
-
-
-
-
6,390,949
-
-
5,805
-
1,573
-
-
45,371
-
-
-
1,025
-
-
1,840,887
-
-
-
9,042,776
6,437,345
1,573
-
(561,991)
(315,687)
2,335,687
116,280
3,461
172,382
-
-
(65,475)
-
(2,326,865)
(109,231)
39,305
-
-
-
(22,709)
172,382
(2,326,865)
(109,231)
(584,700)
(143,305)
8,822
7,049
9,166,228
962,048
10,156
5,719
$ 8,581,528 $
818,743 $
18,978 $
12,768
120
Page 1525 of 1713
EXHIBIT A-2
Special Revenue Funds
Capital Projects Funds
Library
Police
Expendable
Expendable
IFA
Cable
Gifts
Gifts
Veteran's
Housing
Airport
General
TV
Trust
Trust
Memorial
Trust
Construction
Construction
$ 624,717 $
-
$ - $
- $
-
$ -
$ -
-
-
-
-
181,093
493,549
560,417
-
18,745
-
-
-
67,929
-
19,932
35,175
277
2,554
-
17,003
62,030
-
-
-
55,450
-
51,894
2,990
2,221
65,109
-
-
145
-
266,956
646,870
119,029
277
58,004
181,238
630,375
892,393
-
-
59
-
-
-
-
-
-
-
-
-
400
132,481
-
107,238
-
11,550
-
-
46,324
-
-
-
-
6,074
-
1,680,480
585,871
-
-
-
-
-
7,845
-
-
-
-
-
944,764
1,048,231
585,871
107,238
59
11,550
6,074
945,164
2,915,361
60,999
11,791
218
46,454
175,164
(314,789)
(2,022,968)
-
-
-
-
51,705
-
371,500
-
-
-
-
-
(181,054)
-
-
-
-
-
51,705
(181,054)
371,500
60,999
11,791
218
46,454
226,869
(495,843)
(1,651,468)
547,678
1,117,446
8,667
154,834
1,638,134
705,731
3,445,458
$ 608,677 $
1,129,237
$ 8,885 $
201,288 $
1,865,003
$ 209,888
$ 1,793,990
121
Page 1526 of 1713
EXHIBIT A-2
CITY OF DUBUQUE, IOWA
(continued)
COMBINING STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
Capital Projects Funds
Permanent Funds
Ella
Total
Sales
Lyons
Library
Nonmajor
Tax
Street
Peony
Gifts
Governmental
Construction
Construction
Trail Trust
Trust
Funds
REVENUES
Taxes $
2,430,832
$ 3,646,248
$ -
$ -
$ 9,039,057
Special assessments
-
-
-
-
115,387
Intergovernmental
-
6,384,055
-
-
21,981,542
Charges for services
-
25,359
-
-
112,033
Investment earnings
114,089
267,747
(6,871)
593
520,786
Contributions
-
-
-
3
110,337
Miscellaneous
7,221
46,361
-
-
620,664
Total Revenues
2,552,142
10,369,770
(6,871)
596
32,499,806
EXPENDITURES
Governmental activities
Current
Public safety
8,869
-
-
-
8,928
Public works
6,368
1,676,119
-
-
9,011,452
Culture and recreation
77,562
1,327
3,640
-
247,641
Community and economic development
-
-
-
-
8,077,503
General government
-
-
-
-
601,094
Debt service
Principal
-
-
-
-
45,371
Interest and fiscal charges
-
-
-
-
1,025
Capital projects
6,108,201
10,443,480
-
-
20,385,563
Total Expenditures
6,201,000
12,120,926
3,640
-
38,378,577
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(3,648,858)
(1,751,156)
(10,511)
596
(5,878,771)
OTHER FINANCING SOURCES (USES)
Issuance of debt
-
-
-
-
-
Premium on bonds
-
-
-
-
-
Transfers in
-
54,967
-
-
654,015
Transfers out
(935,163)
(234,138)
-
-
(3,851,926)
Insurance recovery
-
33,526
-
-
33,526
Sale of capital assets
-
-
-
-
39,305
Total Other Financing Sources (Uses)
(935,163)
(145,645)
-
-
(3,125,080)
NET CHANGE IN FUND BALANCES
(4,584,021)
(1,896,801)
(10,511)
596
(9,003,851)
FUND BALANCES, BEGINNING
7,757,975
10,570,396
153,002
18,457
36,261,929
FUND BALANCES, ENDING $
3,173,954
$ 8,673,595
$ 142,491
$ 19,053
$ 27,258,078
122
Page 1527 of 1713
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.
Page 1528 of 1713
CITY OF DUBUQUE, IOWA EXHIBIT B-1
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2023
Total Other
Refuse
Transit
Enterprise
Collection
System
Salt
Funds
ASSETS
CURRENT ASSETS
Cash and investments
$ 300,669 $
5,159,202 $
68,119 $
5,527,990
Receivables
Accounts
498,925
17,546
3,814
520,285
Accrued interest
8,199
35,662
471
44,332
Intergovernmental
-
1,893,563
-
1,893,563
Prepaid items
26,405
16,127
42,532
Inventories
-
19,592
-
19,592
Total Current Assets
834,198
7,141,692
72,404
8,048,294
NONCURRENT ASSETS
Restricted cash and investments
227,400
-
227,400
Capital assets
Land
36,000
-
36,000
Buildings
11,703,490
175,458
11,878,948
Improvements to other than buildings
-
796,092
686,312
1,482,404
Machinery and equipment
2,962,580
8,739,523
36,342
11,738,445
Subscription assets
-
21,549
-
21,549
Accumulated depreciation and amortization
(2,214,739)
(5,422,034)
(260,497)
(7,897,270)
Net Capital Assets
747,841
15,874,620
637,615
17,260,076
Total Noncurrent Assets
747,841
16,102,020
637,615
17,487,476
Total Assets
1,582,039
23,243,712
710,019
25,535,770
DEFERRED OUTFLOWS OF RESOURCES
Pension related deferred outflows
199,607
270,829
-
470,436
OPEB related deferred outflows
42,262
66,679
108,941
Total Deferred Outflows of Resources
241,869
337,508
579,377
LIABILITIES
CURRENT LIABILITIES
Accounts payable
102,609
86,953
189,562
Accrued payroll
27,466
34,913
62,379
General obligation bonds payable
6,400
46,498
52,898
Subscription liability
-
11,549
11,549
Accrued compensated absences
5,965
15,082
21,047
Accrued interest payable
1,435
1,885
3,320
Total Current Liabilities
143,875
196,880
340,755
NONCURRENT LIABILITIES
General obligation bonds payable
42,743
956,185
998,928
Accrued compensated absences
227,483
45,219
272,702
Net pension liability
581,006
774,675
1,355,681
Total OPEB liability
228,418
228,420
456,838
Total Noncurrent Liabilities
1,079,650
2,004,499
3,084,149
Total Liabilities
1,223,525
2,201,379
3,424,904
DEFERRED INFLOWS OF RESOURCES
Pension related deferred inflows
125,406
136,385
261,791
OPEB related deferred inflows
50,173
39,711
89,884
Total Deferred Inflows of Resources
175,579
176,096
-
351,675
NET POSITION
Net investment in capital assets
698,698
15,087,788
637,615
16,424,101
Unrestricted
(273,894)
6,115,957
72,404
5,914,467
Total Net Position
$ 424,804 $
21,203,745 $
710,019 $
22,338,568
123
Page 1529 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
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 on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
EXHIBIT B-2
Total Other
Refuse Transit Enterprise
Collection System Salt Funds
$ 4,792,011 $
458,919 $
79,163 $
5,330,093
14,426
45,802
-
60,228
4,806,437
504,721
79,163
5,390,321
3,214,781
2,390,493
-
5,605,274
25,666
109,455
-
135,121
439,211
637,193
424
1,076,828
1,714,521
582,496
75,333
2,372,350
32,741
79,651
-
112,392
251,529
845,727
27,639
1,124,895
5,678,449
4,645,015
103,396
10,426,860
(872,012)
(4,140,294)
(24,233)
(5,036,539)
9,771
4,314,444
-
4,324,215
42,519
96,736
1,781
141,036
668
-
-
668
(1,217)
(22,981)
-
(24,198)
-
49,294
-
49,294
51,741
4,437,493
1,781
4,491,015
(820,271)
297,199
(22,452)
(545,524)
275,196
1,988,085
-
2,263,281
(140,365)
(211,497)
-
(351,862)
(685,440)
2,073,787
(22,452)
1,365,895
1,110,244
19,129,958
732,471
20,972,673
$ 424,804 $
21,203,745 $
710,019 $
22,338,568
124
Page 1530 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
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
$ 4,700,916 $
442,908 $
75,349 $ 5,219,173
(2,194,606)
(1,346,786)
(75,757) (3,617,149)
(3,392,573)
(2,602,318)
- (5,994,891)
14,426
45,802
- 60,228
(871,837)
(3,460,394)
(408) (4,332,639)
275,196
1,988,085
- 2,263,281
(140,365)
(211,497)
- (351,862)
668
-
- 668
9,771
3,571,093
- 3,580,864
145,270
5,347,681
- 5,492,951
-
49,294
- 49,294
-
(179,345)
- (179,345)
(6,018)
(56,469)
- (62,487)
(1,649)
(23,643)
- (25,292)
(7,667)
(210,163)
- (217,830)
34,320
61,074
1,310 96,704
(699,914)
1,738,198
902
1,039,186
1,000,583
3,648,404
67,217
4,716,204
$ 300,669 $
5,386,602 $
68,119 $
5,755,390
125
Page 1531 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
RECONCILIATION OF OPERATING (LOSS) INCOME
TO NET CASH (USED FOR) PROVIDED BY
OPERATING ACTIVITIES
Operating (loss) income
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) Decrease in receivables
(Increase) decrease in inventories and prepaid items
Increase (decrease)in accounts payable
(Decrease) increase in accrued liabilities
Increase in net pension liability
(Increase) in deferred outflows - pension related
(Increase) in deferred outflows - OPEB related
(Decrease) in deferred inflows - pension related
(Decrease) increase in deferred inflows - OPEB related
Increase in total OPEB liability
Total Adjustments
NET CASH (USED FOR) PROVIDED BY OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Amortization of bond discount (premium)
Net acquisition of capital assets through accounts and
retainage payable
Acquisition of capital assets through financing arrangement
EXHIBIT B-3
Business -type Activities - Enterprise Funds
Total Other
Refuse Enterprise
Collection Transit Salt Funds
$ (872,012) $ (4,140,294) $ (24,233) $ (5,036,539)
251,529
845,727
27,639
1,124,895
(91,095)
(16,011)
(3,814)
(110,920)
(26,405)
(779)
-
(27,184)
43,938
62,788
-
106,726
(57,558)
(76,339)
-
(133,897)
561,904
747,128
-
1,309,032
(57,386)
3,149
-
(54,237)
(16,193)
(43,868)
-
(60,061)
(626,465)
(892,335)
-
(1,518,800)
(3,119)
3,491
-
372
21,025
46,949
-
67,974
175
679,900
23,825
703,900
$ (871,837)
$ (3,460,394) $
(408) $
(4,332,639)
$ 235 $ 577 $ - $ 812
$ - $ (121,413) $ - $ (121,413)
$ - $ 21,549 $ - $ 21,549
126
Page 1532 of 1713
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.
Page 1533 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2023
ASSETS
CURRENT ASSETS
Cash and investments
Receivables
Accounts
Intergovernmental
Accrued interest
Inventories
Prepaid expenses
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 (DEFICIT)
Net investment in capital assets
Unrestricted
Total Net Position (Deficit)
General Garage Stores/
Service Service Printing
$ 426,949 $ 481,010 $ 6,871
- 2,220 -
- 33,786 -
75,019 10,935
1,475 -
426,949 593,510 17,806
- 361,329 -
- (310,336) -
- 50,993 -
- 50,993 -
426,949 644,503 17,806
119,676 98,853 -
- 93,379 -
667 24,748 -
667 118,127 -
335,693 -
- 335,693 -
667 453,820 -
648,906 57,789 -
- 50,993 -
(102,948) 180,754 17,806
$ (102,948) $ 231,747 $ 17,806
127
Page 1534 of 1713
EXHIBIT C-1
Health
Workers'
Insurance
Compensation
Reserve
Reserve
Total
$ 6,011,480
$ 1,454,483 $
8,380,793
190,940
-
193,160
-
-
33,786
41,553
10,054
51,607
-
-
85,954
1,503
182,700
185,678
6,245,476
1,647,237
8,930,978
-
-
361,329
-
-
(310,336)
-
-
50,993
-
-
50,993
6,245,476
1,647,237
8,981,971
-
-
218,529
471,617
611,349
1,176,345
-
-
25,415
471,617
611,349
1,201,760
-
-
335,693
-
-
335,693
471,617
611,349
1,537,453
-
-
706,695
-
-
50,993
5,773,859
1,035,888
6,905,359
$ 5,773,859
$ 1,035,888 $
6,956,352
128
Page 1535 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Investment earnings
Gain on disposal of assets
Net Nonoperating Revenues (Expenses)
CHANGE IN NET POSITION
NET POSITION (DEFICIT), BEGINNING
NET POSITION (DEFICIT), ENDING
General
Garage
Stores/
Service
Service
Printing
$ - $
2,796,061
$ 10,384
-
83,298
-
-
2,879,359
10,384
(120,695)
1,061,384
-
-
38,868
8,865
-
211,240
-
-
1,738,716
871
-
9,709
-
-
10,756
-
(120,695)
3,070,673
9,736
120,695
(191,314)
648
1,430
- 1,430
120,695 (189,884)
648
(223,643) 421,631 17,158
$ (102,948) $ 231,747 $ 17,806
129
Page 1536 of 1713
EXHIBIT C-2
Health
Workers'
Insurance
Compensation
Reserve
Reserve
Total
$ 11,427,511
$ 779,630 $
15,013,586
-
22,824
106,122
11,427,511
802,454
15,119,708
-
-
940,689
-
-
47,733
-
-
211,240
10,089,978
328,859
12,158,424
-
100,694
110,403
-
-
10,756
10,089,978
429,553
13,479,245
1,337,533
372,901
1,640,463
191,864 28,286 220,150
- - 1,430
191,864 28,286 221,580
1,529,397 401,187 1,862,043
4,244,462 634,701 5,094,309
0 J,/ /J,OJ7 0 L,VJJ,000 ID V,7J V,J JG
130
Page 1537 of 1713
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2023
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
NET CASH 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
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
Decrease (increase) in inventories and prepaid items
(Decrease) increase in accounts payable
(Decrease) increase in net pension liability
Decrease (increase) in deferred outflows - pension related
(Decrease) in deferred inflows - pension related
Increase (decrease) in accrued liabilities
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
General
Garage
Stores/
Service
Service
Printing
$ -
$ 2,760,055
$ 10,384
-
(1,995,828)
(3,513)
(2,550)
(1,151,775)
-
-
83,298
-
(2,550)
(304,250)
6,871
-
1,430
-
-
1,430
-
(2,550) (302,820) 6,871
429,499 783,830 -
$ 426,949 $ 481,010 $ 6,871
120,695 (191,314) 648
- 10,756 -
-
(36,006) -
-
4,258 12,237
-
(1,553) (6,014)
(19,869)
324,087 -
28,113
(15,394) -
(132,150)
(377,778) -
661
(21,306) -
(123,245)
(112,936) 6,223
$ (2,550) $ (304,250) $ 6,871
131
Page 1538 of 1713
Health
Insurance
Reserve
$ 11,374,575
(10,493,066)
881,509
151,990
Workers'
Compensation
Reserve
$ 769,576 $
(1,248,803)
22,824
(456,403)
EXHIBIT C-3
Total
14,914,590
(13,741,210)
(1,154,325)
106,122
125,177
1,430
1,430
28,485 180,475
1,033,499 (427,918) 307,082
4,977,981 1,882,401 8,073,711
$ 6,011,480 $ 1,454,483 $ 8,380,793
1,337,533 372,901 1,640,463
(52,936)
(1,503)
(401,585)
(456,024)
(10,054)
(182,700)
(636,550)
(829,304)
10,756
(98,996)
(167,708)
(1,045,702)
304,218
12,719
(509,928)
(20,645)
(1,515,286)
$ 881,509 $ (456,403) $ 125,177
132
Page 1539 of 1713
Statistical Section (Unaudited)
June 30, 2023
City of Dubuque, Iowa
Page 1540 of 1713
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 1541 of 1713
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.
133
Page 1542 of 1713
CITY OF DUBUQUE, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2014
2015
2016
2017
2018
Governmental activities
Net investment in capital assets
$ 354,732,451 $
348,173,267 $
369,244,904 $
375,578,520 $
379,040,697
Restricted
21,501,638
22,047,405
21,473,309
23,955,112
27,269,997
Unrestricted
(18,151,279)
(49,579,334)
(47,166,839)
(43,921,629)
(41,853,174)
Total governmental activities net position $ 358,082,810 $ 320,641,338 $ 343,551,374 $ 355,612,003 $ 364,457,520
Business -type activities
Net investment in capital assets
$ 138,842,390 $
148,487,126 $
161,326,743 $
164,448,390 $
168,205,523
Restricted
5,315,519
7,796,668
4,254,907
3,796,752
3,053,616
Unrestricted
(593,202)
(4,568,933)
(7,339,071)
3,876,760
10,696,792
Total business -type activities net position
$ 143,564,707 $
151,714,861 $
158,242,579 $
172,121,902 $
181,955,931
Primary government
Net investment in capital assets
$ 493,574,841 $
496,660,393 $
530,571,647 $
540,026,910 $
547,246,220
Restricted
26,817,157
29,844,073
25,728,216
27,751,864
30,323,613
Unrestricted
(18,744,481)
(54,148,267)
(54,505,910)
(40,044,869)
(31,156,382)
Total primary government net positions
$ 501,647,517 $
472,356,199 $
501,793,953 $
527,733,905 $
546,413,451
134
Page 1543 of 1713
Year
TABLE 1
2019 2020 2021 2022 2023
$ 385,005,220
$ 387,344,725
$ 387,768,367
$ 386,739,779 $
400,952,682
28,321,603
26,501,434
34,083,157
35,584,078
47,002,287
(36,682,314)
(35,985,750)
(30,327,770)
(12,530,829)
(11,293,269)
$ 376,644,509
$ 377,860,409
$ 391,523,754
$ 409,793,028 $
436,661,700
$ 179,561,228
$ 191,757,112
$ 207,159,931
$ 219,652,664 $
231,850,352
3,131,716
3,187,364
2,942,894
3,124,213
2,828,344
12,617,567
17,437,890
27,491,072
32,915,285
37,930,508
$ 195,310,511
$ 212,382,366
$ 237,593,897
$ 255,692,162 $
272,609,204
$ 564,566,448
$ 579,101,837
$ 594,928,298
$ 606,392,443 $
632,803,034
31,453,319
29,688,798
37,026,051
38,708,291
49,830,631
(24,064,747)
(18,547,860)
(2,836,698)
20,384,456
26,637,239
$ 571,955,020
$ 590,242,775
$ 629,117,651
$ 665,485,190 $
709,270,904
135
Page 1544 of 1713
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:
Fiscal -
2014
2015
2016
2017
$ 27,578,517
$ 25,525,937
$ 26,851,624
$ 30,020,343
21,306,882
19,207,837
24,323,023
19,608,137
1,055,398
928,968
967,936
815,251
13,696,331
13,002,690
12,993,331
13,653,509
14,591,257
18,064,831
15,464,781
18,096,170
9,610,084
6,420,173
4,101,423
8,982,668
3,684,993
3,903,667
2,963,134
3,467,685
$ 91,523,462
$ 87,054,103
$ 87,665,252
$ 94,643,763
Sewage disposal works
$
11,481,103
$
12,019,866
$
12,817,669
$
11,326,661
Water utility
8,812,340
7,800,393
6,483,229
6,807,217
Stormwater utility
3,431,096
4,131,562
5,021,523
6,234,015
Parking facilities
3,732,492
3,383,419
3,420,296
3,547,856
America's River Project
33,579
24,000
21,521
22,893
Refuse collection
3,750,366
3,740,404
3,968,761
4,208,268
Transit system
3,847,320
4,245,823
4,274,967
4,237,054
Salt
56,468
244,691
181,617
45,039
Total business -type activities expenses
35,144,764
35,590,158
36,189,583
36,429,003
Total primary government expenses
$
126,668,226
$
122,644,261
$
123,854,8 55
$
131,072,766
Program Revenues
Governmental activities:
Charges for services
Public safety
$
2,624,455
$
2,532,114
$
2,713,065
$
2,930,068
Public works
5,829,293
6,092,356
5,765,075
5,681,107
Culture and recreation
2,321,265
2,547,843
2,723,270
2,767,636
Other activities
3,921,256
3,493,143
3,887,056
3,541,205
Operating grants and contributions
12,784,907
11,992,439
15,301,219
15,028,527
Capital grants and contributions
12,162,649
9,704,043
18,667,619
13,360,280
Total governmental activities program revenues
$
39,643,825
$
36,361,938
$
49,057,304
$
43,308,823
Business -type activities:
Charges for services
Sewage disposal works
$ 10,025,673
$ 10,582,662
$ 12,158,439
$ 12,442,584
Water utility
7,248,790
7,463,430
8,406,928
8,553,225
Stormwater utility
3,224,504
3,490,040
3,754,148
4,076,396
Parking facilities
2,920,148
3,036,214
3,247,383
3,286,947
America's River Project
-
-
1,605
4
Refuse collection
3,700,922
3,783,493
3,857,340
4,185,051
Transit system
275,907
397,545
463,688
459,258
Salt
45,600
232,271
81,720
86,887
Operating grants and contributions
1,717,208
1,866,535
1,648,077
1,700,171
Capital grants and contributions
2,920,942
10,020,715
7,607,721
14,160,820
Total business -type activities program revenues
32,079,694
40,872,905
41,227,049
48,951,343
Total primary government program revenues
$ 71,723,519
$ 77,234,843
$ 90,284,353
$ 92,260,166
136
Page 1545 of 1713
TABLE 2
Year
2018
2019
2020
2021
2022
2023
$ 29,482,962
$
29,637,417
$
32,079,903
$
32,583,676
$
30,548,958 $
31,897,099
20,393,871
24,835,035
22,667,132
20,949,455
21,999,636
23,176,938
883,217
1,442,658
1,677,181
1,487,042
1,003,870
966,542
14,323,710
12,916,646
13,576, 571
11,341,436
14,452,466
17,282,589
21,109,384
15,837,039
17,848,570
18,168,279
16,866,498
19,094,222
7,573,081
5,944,116
8,821,692
10,046,004
7,210,508
9,651,738
3,129,502
3,387,730
2,929,997
2,791,647
2,004,709
2,520,840
$ 96,895,727
$
94,000,641
$
99,601,046
$
97,367,539
$
94,086,645 $
104,589,968
$ 11,614,347
$
12,177,352
$
11,725,889
$
12,248,931
$
12,197,134 $
13,038,176
7,109,421
7,892,423
7,631,411
7,604,425
7,212,652
8,140,552
6,159,039
7,025,525
5,887,171
6,164,947
6,047,606
6,493,098
2,866,510
2,845,911
3,414,851
3,334,222
2,972,990
3,261,531
10,143
19,874
3,161
-
-
-
4,244,551
4,215,881
4,387,683
4,546,168
4,452,838
5,599,895
4,722,979
4,533,060
4,748,463
4,494,303
4,027,600
4,615,225
119,421
182,092
333,556
147,524
129,265
103,396
36,846,411
38,892,118
38,132,185
38,540,520
37,040,085
41,251,873
$ 133,742,138
$
132,892,759
$
137,733,231
$
135,908,059
$
131,126,730 $
145,841,841
$ 2,600,751
$
2,535,504
$
2,641,633
$
4,942,529
$
5,443,744 $
4,966,834
6,654,101
7,327,692
6,732,825
10,937,121
9,591,742
5,707,265
2,874,493
2,459,644
2,237,000
2,876,779
3,564,782
3,233,591
5,864,541
3,815,321
5,455,952
1,753,928
4,100,714
6,049,651
21,569,356
23,198,271
14,484,320
24,436,818
19,956,589
18,825,358
7,779,713
11,048,200
15,450,271
12,266,220
4,007,842
16,280,486
$ 47,342,955
$
50,384,632
$
47,002,001
$
57,213,395
$
46,665,413 $
55,063,185
$ 12,659,662
$
12,479,684
$
12,606,632
$
13,070,575
$
13,870,390 $
14,835,494
8,906,136
8,959,023
9,273,720
9,608,742
10,153,939
10,802,909
4,367,963
4,714,670
5,061,855
5,177,696
5,233,932
5,611,781
3,034,744
3,066,118
2,313,344
2,007,307
2,692,362
2,202,247
4
4
-
-
4,232,542
4,351,428
4,448,317
4,424,410
4,646,568
4,801,782
465,550
512,385
400,576
168,493
405,194
458,919
96,273
174,784
346,753
125,189
100,763
79,163
1,648,403
1,917,366
2,967,619
9,894,477
2,281,855
4,349,167
5,705,262
6,215,459
6,410,594
6,691,110
7,444,056
9,279,293
41,116,539
42,390,921
43,829,410
51,167,999
46,829,059
52,420,755
$ 88,459,494
$
92,775,553
$
90,831,411
$
108,381,394
$
93,494,472 $
107,483,940
137
Page 1546 of 1713
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
Miscellaneous
Gain on sale of capital assets
Transfers
Total governmental activities
Business -type activities:
General Revenues
Unrestricted investment earnings
Miscellaneous
Gain on sale of capital assets
Transfers
Total business -type activities
Total primary government
Change in Net Position
Governmental activities
Business -type activities
Total primary government
Fiscal -
2014 2015 2016 2017
$ (51,879,637)
$ (50,692,165)
$ (38,607,948)
$ (51,334,940)
(3,065,070)
5,282,747
5,037,466
12,522,340
$ (54,944,707)
$ (45,409,418)
$ (33,570,482)
$ (38,812,600)
$ 33,264,283
$ 36,277,719
$ 36,518,506
$ 39,678,473
8,211,366
8,760,246
9,155,411
8,890,046
2,006,514
2,623,551
2,128,042
2,821,745
2,609,421
2,828,688
4,360,107
4,558,847
7,878,008
7,397,709
8,440,161
8,098,324
777,958
668,134
1,082,165
335,577
483,782
19,495
813,492
83,720
(2,444,846)
(7,288,593)
(979,900)
(1,071,163)
$ 52,786,486
$ 51,286,949
$ 61,517,984
$ 63,395,569
$ 135,461
$ 185,356 $
407,528
$ 231,746
180,229
6,571
102,824
54,074
2,444,846
7,288,593
979,900
1,071,163
2,760,536
7,480,520
1,490,252
1,356,983
$ 55,547,022 $ 58,767,469 $ 63,008,236 $ 64,752,552
$ 906,849
$ 594,784
$ 22,910,036
$ 12,060,629
(304,534)
12,763,267
6,527,718
13,879,323
$ 602,315
$ 13,358,051
$ 29,437,754
$ 25,939,952
138
Page 1547 of 1713
TABLE 2
(continued)
Year
2018 2019 2020 2021 2022 2023
$ (49,552,772)
$ (43,616,009)
$ (52,599,045)
$ (40,154,144)
$ (47,421,232) $ (49,526,783)
4,270,124
3,494,540
5,697,225
12,235,793
9,788,974 11,168,882
$ (45,282,648)
$ (40,121,469)
$ (46,901,820)
$ (27,918,351)
$ (37,632,258) $ (38,357,901)
$ 39,632,246 $
37,973,888 $
38,354,691 $
39,524,078 $
39,406,493 $
40,211,474
8,610,948
8,940,109
9,652,332
11,328,295
12,738,941
12,154,160
2,286,469
2,113,273
2,117,506
2,036,045
2,915,854
3,071,858
4,832,958
5,072,350
4,976,472
4,920,610
6,044,713
7,061,030
8,062,251
8,730,986
7,394,294
8,077,003
12,000,140
9,846,790
688,769
1,858,476
1,857,420
142,102
(390,365)
5,674,974
-
-
-
-
-
2,058,660
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)
(3,683,491)
$ 59,000,483 $
55,802,998 $
53,814,945 $
53,480,070 $
65,529,334 $
76,395,455
$ 268,283 $
798,497
$ 796,494 $
130,706 $
119,466 $
1,571,115
-
-
-
-
-
435,822
4,680
80,479
16,500
-
(206,351)
57,732
5,423,015
8,981,064
10,561,636
12,845,032
7,430,546
3,683,491
5,695,978
9,860,040
11,374,630
12,975,738
7,343,661
5,748,160
$ 64,696,461 $
65,663,038
$ 65,189,575 $
66,455,808 $
72,872,995 $
82,143,615
$ 9,447,711 $
12,186,989 $
1,215,900 $
13,325,926 $
18,108,102 $
26,868,672
9,966,102
13,354,580
17,071,855
25,211,531
17,132,635
16,917,042
$ 19,413,813 $
25,541,569 $
18,287,755 $
38,537,457 $
35,240,737 $
43,785,714
139
Page 1548 of 1713
CITY OF DUBUQUE, IOWA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
General Fund
Nonspendable
Restricted
Assigned
Unassigned
Total general fund
All Other Governmental Funds
Nonspendable
Restricted
Committed
Unassigned
Total all other governmental funds
Fiscal -
2014 2015 2016 2017
$ 6,549,063
$ 6,082,043
$ 6,049,052
$ 5,585,672
-
-
-
2,208
1,904,805
647,772
1,015,935
1,590,065
7,356,066
8,693,524
10,908,497
12,582,596
$ 15,809,934
$ 15,423,339
$ 17,973,484
$ 19,760,541
$ 8,640,780
$ 1,183,423
$ 553,292
$ 944,856
23,620,615
30,496,183
27,450,187
28,103,397
10,548,592
12,298,896
7,635,502
6,592,154
$ 42,809,987 $ 43,978,502 $ 35,638,981 $ 35,640,407
140
Page 1549 of 1713
TABLE 3
Year
2018 2019 2020 2021 2022 2023
$ 5,414,922
$ 5,369,478
$ 5,145,558 $
3,895,638 $
3,631,563 $
3,150,525
-
229,995
219,741
197,264
186,705
-
1,267,250
1,438,616
1,396,196
2,868,215
4,292,669
4,336,311
15,193,241
19,276,479
20,128,223
28,023,989
36,610,486
44,067,606
$ 21,875,413
$ 26,314,568
$ 26,889,718 $
34,985,106 $
44,721,423 $
51,554,442
$ 415,271
$ 406,813
$ 1,030,515 $
960,898 $
1,159,785 $
714,788
30,347,598
34,367,024
30,247,351
40,785,902
42,155,557
45,484,328
4,660,158
3,009,111
5,823,218
7,901,868
10,202,856
3,769,015
(2,021,937)
(1,185,047)
(2,703,558)
(1,561,830)
-
(1,006,837)
$ 33,401,090
$ 36,597,901
$ 34,397,526 $
48,086,838 $
53,518,198 $
48,961,294
141
Page 1550 of 1713
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2014
2015
2016
2017
Revenues
Taxes
$ 46,034,361
$ 50,490,204
$ 51,580,084
$ 55,949,111
Special assessments
154,692
85,501
111,193
261,233
Licenses and permits
1,136,941
1,198,420
1,480,643
1,505,564
Intergovernmental
23,050,052
20,828,524
29,302,824
26,314,297
Charges for services
10,264,257
10,711,243
10,919,854
10,816,025
Fines and forfeits
455,219
362,661
421,925
484,687
Investment earnings
756,809
668,134
1,082,165
335,577
Contributions
678,561
789,268
1,440,405
689,237
Gaming
7,878,008
7,397,709
8,440,161
8,098,324
Miscellaneous
1,705,275
1,466,542
1,367,875
1,811,681
Total revenues
$ 92,114,175
$ 93,998,206
$ 106,147,129
$ 106,265,736
Expenditures
Current
Public safety
$ 27,644,190
$ 27,570,773
$ 28,036,551
$ 29,155,128
Public works
13,942,772
11,200,427
14,597,823
11,728,716
Health and social services
1,049,194
939,172
1,015,987
868,280
Culture and recreation
12,351,497
12,300,454
11,909,029
12,397,294
Community and economic development
14,420,980
16,418,909
13,473,413
16,474,553
General government
5,898,293
5,977,605
6,436,114
7,287,586
Debt service
Principal
4,595,808
4,910,735
10,302,412
17,615,698
Interest
3,650,694
3,577,829
3,707,268
3,579,807
Capital projects
18,779,651
14,829,037
31,504,581
16,260,851
Total expenditures
$ 102,333,079
$ 97,724,941
$ 120,983,178
$ 115,367,913
Excess (deficiency) of revenues over
(under) expenditures
$ (10,218,904)
$ (3,726,735)
$ (14,836,049)
$ (9,102,177)
Other Financing Sources (Uses)
Issuance of debt
$ -
S
11,137,321
$
3,933,882
$
230,000
Discount on bonds
-
72,852
292,521
319,384
Premiums on bonds
-
-
-
-
Issuance of refunding bonds
-
-
-
11,023,700
Payment to refunded bonds escrow agent
-
-
4,650,000
-
Transfers in
15,862,516
18,073,553
17,397,007
18,814,586
Transfers out
(17,294,762)
(25,241,795)
(18,376,907)
(19,917,219)
Insurance recovery
59,796
106,288
86,359
41,345
Sale of capital assets
666,648
360,436
1,063,814
378,861
Total other financing sources (uses)
$ (705,802)
$
4,508,655
$
9,046,676
$
10,890,657
Special Items
Transfer of roads
$ -
$
-
$
-
$
-
Total special items
$ -
$
-
$
-
$
-
Net change in fund balances
$ (10,924,706)
$
781,920
$ (5,789,373)
$
1,788,480
Debt service as a percentage of noncapital expenditure 10%
10%
15%
21 %
142
Page 1551 of 1713
TABLE 4
Year
2018 2019 2020 2021 2022 2023
$ 55,362,621
$ 54,101,901
$ 54,818,674 $
57,809,028 $
61,106,001 $
62,496,318
122,968
113,178
76,394
101,219
42,996
118,387
1,642,498
1,619,892
1,497,086
1,983,531
2,211,503
1,915,186
27,229,554
31,359,695
28,618,060
31,984,376
27,568,957
31,162,370
11,559,017
12,476,036
10,994,598
13,480,915
16,152,093
16,555,832
407,322
404,400
365,458
375,268
303,348
369,273
688,769
1,701,846
1,699,015
120,890
(401,489)
5,500,145
816,922
1,343,916
1,163,721
3,564,843
809,911
2,542,916
8,062,251
8,708,702
7,394,294
8,077,003
12,000,140
9,846,790
1,589,072
1,526,804
3,517,089
1,399,203
2,870,089
1,887,319
$ 107,480,994
$ 113,356,370
$ 110,144,389 $
118,896,276 $
122,663,549 $
132,394,536
$ 28,581,466 $ 28,807,920 $ 29,518,515
11,687,309
12,851,393
11,838,812
854,045
1,046,184
1,340,544
12,776,591
13,037,048
13,199,378
20,350,200
15,730,191
16,685,406
6,755,479
6,571,094
7,447,439
7,989,850
5,509,605
7,065,499
3,274,200
3,320,911
3,044,421
17,402,848
20,145,054
21,089,439
$ 109,671,988
$ 107,019,400
$ 111,229,453
$ 29,038,359
$ 31,256,017 $
33,748,788
12,104,310
15,643,225
17,537,029
1,067,491
880,876
1,015,604
11,917,333
14,626,704
17,166,367
17,531,856
18,756,833
19,011,697
7,499,790
7,930,781
7,728,869
27,524,288
4,518,117
5,545,842
2,997,621
2,693,685
2,707,063
15,308,122
17,435,407
25,289,860
$ 124,989,170
$ 113,741,645 $
129,751,119
$ (2,190,994) $ 6,336,970 $ (1,085,064) $ (6,092,894) $ 8,921,904 $ 2,643,417
$ 110,000
$
2,883,875
$ 1,372,907
$
-
$
9,565,000
$ 811,353
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
10,591,993
(20,980,391)
(18,876,402)
(19,858,343)
(19,145,976)
(16,765,216)
(12,975,637)
98,058
87,843
71,604
136,979
17,327
288,664
2,154,546
96,035
665,289
924,656
282,482
916,325
$ 2,066,549
$
1,298,996
$ (540,161)
$
22,205,594
$
6,092,041
$ (367,302)
$ -
$
-
$ -
$
5,672,000
$
-
$ -
$ -
$
-
$ -
$
5,672,000
$
-
$ -
$ (124,445)
$
7,635,966
$ (1,625,225)
$
21,784,700
$
15,013,945
$ 21276,115
12% 10% 11% 28% 7% 8% 143
Page 1552 of 1713
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
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
2021
2023
3,100,106
4,803,254
7,371
3,092,735
4,803,254
Source: Dubuque County Assessor's and Auditor's Offices
TABLE 5
Total
Taxable
Value to
Total
Assessed Total Direct
Value Tax Rate
68.19 11.02586 %
68.18 11.02588
67.16 11.02590
67.56 11.16739
68.14 10.89220
66.58 10.58844
67.50 10.33144
66.53 10.14400
66.61 9.88899
64.39 9.71686
144
Page 1553 of 1713
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER $1,000 ASSESSED VALUE
TABLE 6
Dubuque
Board of
Ratio of
Levy
Fiscal
Dubuque
School
Education and
Area 1
Dubuque
Dubuque
Year
Year
City
District
Independents
Voc. Tech
County
Total
City to Total
2012
2014
11.02586
14.60281
0.75274
0.90455
6.43124
33.71720
32.70 %
2013
2015
11.02588
13.99630
0.66355
0.90807
6.43124
33.02504
33.39
2014
2016
11.02590
14.05629
0.63899
0.91036
6.38779
33.01933
33.39
2015
2017
11.16739
14.97697
0.63146
0.93757
6.29673
34.01012
32.84
2016
2018
10.89220
14.95665
0.62780
1.09993
6.34143
33.91801
32.11
2017
2019
10.58844
14.59791
0.65204
1.09993
5.97760
32.91592
32.17
2018
2020
10.33144
14.71233
0.64911
1.03168
5.94098
32.66554
31.63
2019
2021
10.14400
14.66255
0.62819
0.94734
5.91098
32.29306
31.41
2020
2022
9.88899
14.55590
0.61829
0.90520
5.74009
31.70847
31.19
2021
2023
9.71686
13.91240
0.66681
0.90520
5.35009
30.55136
31.80
Separate components of the Dubuque City Rate is as follows:
Levy
Fiscal
Public
Employee
Debt
Year
Year
General
Transit
Insurance
Benefits
Service
Total
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
2021
2023
8.10000
0.58311
0.18212
0.82988
0.02175
9.71686
Source: Dubuque County Auditor's Office
145
Page 1554 of 1713
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
TABLE 7
2023
2014
Percentage of
Percentage of
Total City
Total City
Taxable
Taxable
Taxable
Taxable
Taxpayer
Value
Rank
Value
Value
Rank
Value
Peninsula Gaming Company LLC $
57,487
1
1.85 % $
61,326
1
2.56 %
Kennedy Mall Inc.
30,088
2
0.97
35,312
2
1.47
Progressive Processing LLC (Hormel)
22,852
3
0.74
21,397
3
0.89
MAR Holdings LLC (Medical Assoc.)
20,336
4
0.66
21,307
4
0.89
KMDE LLC
16,887
5
0.54
Walter Development LLC
13,348
6
0.43
16,639
6
0.69
Nordstrom, Inc.
13,320
7
0.43
18,599
5
0.78
MGI Leasing Inc
12,547
8
0.40
MRE Propco LP
11,457
9
0.37
Roshek Property LLC
10,785
10
0.35
McGraw Hill Global Education LLC
15,907
7
0.66
Otto A LLC
14,100
8
0.59
Platinum Holdings LLC
11,817
9
0.49
Flexsteel Industries Inc.
11,409
10
0.48
$
209,107
6.74 1Y,) $
227,813
9.50
Source: Dubuque County Auditor's Office
146
Page 1555 of 1713
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
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
2023
2022
26,250
26,279
100.1
10.00
26,289
100.1
466
1.78
(1) Exclude tax increment levy.
(2) Includes taxes collected in June by the County, but not received by the City until July.
147
Page 1556 of 1713
CITY OF DUBUQUE, IOWA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
General
Tax Increment
Tax Increment
Other
Fiscal
Obligation
Financing
Financing
Loans
Leases
Subscriptions
Year
Bonds
Bonds
Notes
Payable
Payable
Payable
2014
$ 52,568,648 $
21,556,435 $
1,030,036
$ 5,541,428 $
$
2015
59,614,941
21,165,946
811,608
5,444,285
2016
58,869,812
20,764,818
625,429
5,347,142
2017
53,800,719
20,333,690
451,763
4,650,000
2018
48,833,498
19,867,562
255,881
4,067,700
2019
46,917,828
19,366,434
176,054
3,984,111
2020
41,985,513
18,825,306
91,860
3,899,264
2021
41,745,365
18,244,178
46,195
3,748,361
2022
47,326,155
17,654,438
-
3,473,387
208,537
-
2023
43,714,425
16,985,776
3,210,157
164,142
1,798,899
Notes: 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.
Business -
General
Obligation
Bonds
$ 32,738,862
45,868,394
46,806,473
44,487,023
41,979,910
39,246,002
36,220,856
34,104,175
30,576,996
27,302,991
Page 1557 of 1713
Type Activities
Capital
Other
Total
Percentage of
Loan
Revenue
Loans
Leases
Subscriptions
Primary
Personal
Notes
Bonds
Payable
Payable
Payable
Government
Income (1)
$ 82,924,949 $
14,151,437
$ 286,263
$ $
$
210,798,058
8.1 %
85,477,970
34,543,432
262,055
253,188,631
10.0
104,156,549
34,196,999
236,623
271,003,845
9.9
110,513,944
33,840,566
5,209,900
273,287,605
10.1
112,765,210
33,474,133
4,181,826
265,425,720
9.1
111,655,588
33,097,700
3,152,331
257,596,048
8.4
116,965,647
32,706,767
2,152,331
252,847,544
7.7
115,011,616
32,304,834
1,088,786
246,293,510
7.5
113,108,033
31,677,569
54,850
251,803
-
244,331,768
6.9
108,521,425
29,096,115
-
224,936
11,549
231,030,415
TABLE 9
Per
Capita 1
$ 3,657
4,393
4,637
4,648
4,555
4,446
4,238
4,135
4,133
3,924
149
Page 1558 of 1713
CITY OF DUBUQUE, IOWA
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS TABLE 10
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
Percentage of
Percentage of
General
Taxable
Taxable
Assessed
Assessed
Fiscal
Obligation
Value of
Value of
Value of
Value of
Per
Year
Bonds
Property
Property
Property
Property
Capita
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
2023
71,017
3,100,106
2.29
4,803,254
1.48
1,206
Prior year information has been modified to net GO Bonds with the fund balance in Debt Service fund.
General obligation bonds are netted with the fund balance in the Debt Service fund.
150
Page 1559 of 1713
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2023
TABLE 11
Jurisdiction Net General
Tax
Obligation
Increment Sales Tax Other
Percentage
Amount
Bonded Debt
Financing Revenue Loans
Leases Subscriptions Applicable
Applicable to
Outstanding
Bonds (1) Bonds Payable
Payable Payable to City
Government
Direct, City of Dubuque, Iowa
Overlapping:
Dubuque County
Dubuque Community School District
Northeast Iowa Community College
Total Overlapping
Total
(1) Excludes sales tax revenue bonds.
$ 43,714,425 $ 16,985,776 $ 3,374,299 $ 3,210,157 $ 389,078 $ 1,810,448 100.00 % $ 69,484,183
15,760,000 83,284 72.69 % 11,516,483
- - 96.19 % -
33,820,000 19,525,000 72.78 % 38,824,491
49,580,000 - 19,608,284 - - 50,340,974
$ 93,294,425 $ 16,985,776 $ 3,374,299 $ 22,818,441 $ 389,078 $ 1,810,448 $ 119,825,157
Source: Dubuque County Auditor, Dubuque Community School District and Northeast Iowa Community College.
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 bome
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 bome by the residents and businesses should be taken into
account. However, this does not imply that every taxpayer is a resident, and therefore responsible for repaying the debt, of each overlapping government.
151
Page 1560 of 1713
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
RN THOUSANDS OF DOLLARS)
2014
2015
2016
2017
Debt limit
$ 183,621 $
193,114 $
196,031 $
207,174
Total net debt
applicable to limit
131,289
154,643
152,386
141,076
Legal debt margin
$ 52,332 $
38,471 $
43,645 $
66,098
Total net debt
applicable to the debt
limit as a percentage
of debt limit
71.50% 80.08% 77.74% 68.10%
152
Page 1561 of 1713
TABLE 12
2018
2019
2020
2021
2022
2023
$ 209,049 $
221,513 $
239,298 $
239,298 $
241,616 $
259,297
124,926
117,223
109,021
102,256
101,870
93,413
$ 84,123 $
104,290 $
130,277 $
137,042 $
139,746 $
165,884
59.76% 52.92% 45.56%
Legal Debt Margin Calculation for Fiscal Year 2023
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
42.73% 42.16% 36.03%
$ 5,185,945,799
259,297,290
(93,412,875)
$ 165,884,415
153
Page 1562 of 1713
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
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
2023
10,999
6,477
4,522
827
262
1,089
4.15
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
5,238
2,951
2,287
1,064
414
1,478
1.55
2023
6,368
2,461
3,907
2,282
704
2,986
1.31
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
2023
15,387
8,236
7,151
3,129
1,244
4,373
1.64
(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.
154
Page 1563 of 1713
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY TABLE 14
LAST TEN FISCAL YEARS
Fiscal
Year
Water
Revenue
Sewer
Revenue
Gallons
Billed
2014
$ 7,028,091
$ 9,756,996
$ 1,845,151,329
2015
7,231,393
10,417,833
1,864,028,948
2016
8,159,240
11,772,847
1,883,797,577
2017
8,248,796
12,000,115
1,844,997,688
2018
8,525,072
12,015,480
1,632,426,374
2019
8,636,521
12,266,217
1,750,735,443
2020
8,958,162
12,395,751
1,738,198,948
2021
9,040,349
12,583,458
1,774,274,430
2022
9,969,922
13,806,812
1,879,915,407
2023
10,532,570
14,801,136
1,917,094,261
Source: Cash basis receipt ledgers.
*Revenue includes penalties and investment earnings cc
New in 2015 - revenue does not include sales tax. All y
New in 2020 - revenue does not include bonds.
WATER RATE SCHEDULE HISTORY
Steps
Gallons
2023
2022
2021
2020
2019
First
22,440
@ S
0.00553
0.00527
0.00512
0.00512
0.00488
Next
89,760
@
0.00454
0.00432
0.00419
0.00419
0.00399
Next
261,800
@
0.00423
0.00403
0.00310
0.00391
0.00372
Next
374,000
@
0.00373
0.00355
0.00345
0.00345
0.00329
Excess
@
0.00327
0.00311
0.00302
0.00302
0.00288
2018
2017
2016
0.00474
0.00460
0.00447
0.00387
0.00376
0.00365
0.00361
0.00350
0.00340
0.00319
0.00310
0.00301
0.00280
0.00272
0.00264
155
Page 1564 of 1713
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST TEN FISCAL YEARS
TABLE 15
Fiscal Year Residential
Commercial
Industrial
Government
Total
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
2023 22,214
2,051
73
167
24,505
Source: Water Department
156
Page 1565 of 1713
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2023
Customer
Simmons Pet Food, Inc. $
Rousselot Inc #155296
Prairie Farms Dairy Inc
Hormel Foods Corporation*
Hormel Foods Corporation*
APC, Inc.
Finley Hospital
Stonehill Nursing Home
Yes Companies Exp Fred, LLC
Mercy Health Services - Iowa Corp
Discover Hospitality
Alpine Park MHC LLC
IADU Table Mound MHP LLC
Midwest Car Washes LLC*
Ronsan Enterprises In/Days Inn
Total Receipts from all water $
and sewer customers
Source: Water Department
Percentage of
Water
Total Water
Receipts
Rank
Receipts
773,946
1
7.35 %
313,550
2
2.98
270,997
3
2.57
183,635
4
1.74 $
150,177
5
1.43
51,684
6
0.49
50,418
7
0.48
49,593
8
0.47
46,221
9
0.44
42,479
10
0.40
10,532,570
TABLE 16
Percentage of
Sewer Total Sewer
Receipts Rank Receipts
429,586
1
2.90 %
347,993
2
2.35
78,901
7
0.53
93,289
5
0.63
84,527
4
0.57
260,975
3
1.76
85,119
6
0.58
72,675
8
0.49
64,806
9
0.44
59,627
10
0.40
$ 14,801,136
* Same company, separate accounts. Previous years combined several accounts with the same business name. Now
listed separately.
157
Page 1566 of 1713
CITY OF DUBUQUE, IOWA
SALES TAX INCREMENT BONDS TABLE 17
FISCAL YEAR ENDING JUNE 30, 2023
Fiscal
Year
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025
2026
2027
2028
2029
2030
2031
2032
2033
Estimated
Sales Tax
Increment
Revenue
Receipts*
$ 2,037,489
2,532,846
3,945,134
3,654,915
4,207,297
4,709,559
4,068,763
9,751,827
7,079,324
6,956,351
6,957,401
6,952,046
6,952,532
6,947,494
6,723,750
6,250,000
4,467,912
2,217,912
2,250,000
* Actual Receipts
Senior Lien
Series 2015A
Net Debt Service
(1)
(762,650)
(762,650)
(762,650)
(762,650)
(762,650)
(762,650)
(2,771,000)
(2,768,969)
(2,771,031)
(2,768,719)
(2,768,394)
(2,767,300)
(2,768,800)
(2,766,400)
Remaining
Revenues After
Senior Lien
Debt Service
$ 2,037,489
2,532,846
3,945,134
2,892,265
3,444,647
3,946,909
3,306,113
8,989,177
6,316,674
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)
(323,100)
(1,393,500)
(1,400,500)
(1,344,250)
(1,363,000)
(1,365,000)
(1,365,000)
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
5,993,574
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
158
Page 1567 of 1713
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)
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 3,550,095,950
60,050
39
10,120
2.9
2023
58,877 *
63,520
40
9,996
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.
159
Page 1568 of 1713
THIS PAGE IS INTENTIONALLY LEFT BLANK
Page 1569 of 1713
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
2023 2014
TABLE 19
Percentage of
Percentage of
# of
Total City
# of
Total City
Employer
Employees
Rank
Employment (1)
Employees
Rank
Employment (1)
John Deere (2)
2,600
1
4.79 %
2,400
1
4.30 %
Dubuque Community Schools
1,957
2
3.60
1,946
2
3.49
Mercy One Medical Center
1,410
3
2.60
1,313
3
2.35
Medical Associates
1,061
4
1.95
1,011
5
1.81
Unity Point Health -Finley Hospital
975
5
1.80
859
6
1.54
Andersen Windows
750
6
1.38
City of Dubuque
737
7
1.36
698
7
1.25
Sedgwick
725
8
1.34
550
9
0.99
Cottingham & Butler
715
9
1.32
Dubuque Bank and Trust / Heartland
600
10
1.10
IBM
1,300
4
2.33
Diamond Jo
510
10
0.91
Eagle Window and Door
550
8
0.99
11,530 21.24 % 11,137 19.96 %
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
160
Page 1570 of 1713
CITY OF DUBUQUE, IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY
FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2014
2015
2016
2017
2018
Public Safety
Emergency Communications
13.00
13.00
13.00
14.00
14.00
Fire
90.00
90.00
90.00
90.00
90.00
Police
115.08
115.88
116.00
116.00
116.00
5 Building Services
9.24
11.66
12.00
12.00
12.00
Public Works
Public Works
86.42
86.42
86.42
86.42
86.42
Engineering
29.00
29.00
30.00
30.00
26.06
Health & Social Services
Health Services
4.00
4.00
4.00
4.00
4.00
Human Rights
5.00
5.00
5.00
5.00
5.00
Cultural and Recreation
Civic Center
0.15
0.15
0.15
0.15
0.15
Conference Center
-
-
-
-
-
Library
19.00
19.00
19.00
19.00
19.00
Park
23.50
23.50
23.50
22.50
22.50
Recreation
9.93
10.93
11.93
11.93
11.93
Community & Economic Development
Community / Economic Dev
4.00
4.00
2.00
2.00
3.00
Housing Services
27.00
26.00
21.00
25.00
25.00
Planning Services
8.00
8.00
8.00
8.00
8.00
6 Office of Neighborhood Support
and Shared Prosperity
-
-
-
-
-
General Government
Airport
12.00
12.00
12.00
12.00
12.00
Cable TV
2.00
2.00
2.00
2.00
2.00
City Clerk's Office
3.00
3.00
3.00
3.00
3.00
City Manager's Office
15.00
16.00
16.00
16.00
17.00
4 Finance / Budget
14.08
14.88
15.00
15.00
15.00
Legal
5.00
5.00
5.00
5.00
4.00
Information Services
8.00
8.00
8.00
8.00
8.00
Business Type
Water
26.00
26.00
25.00
25.00
25.00
Water & Resource Recovery Center
18.00
18.00
17.00
17.00
17.00
2 Parking
9.00
9.00
9.00
8.00
7.00
Transportation Services
6.32
8.00
13.00
13.00
14.00
Total
561.72
568.42
567.00
570.00
567.06
Source: City Budget Records
Departments with employees who are allocated to more than one function reflected in area with largest number of employ
IDepartment renamed in 2011. Formerly known as the Water Pollution Control.
PParking division merged with Transit to become the Transportation Services Department
3Department renamed FY'19 Transportation Services when Parking division merged with Transit
4Finance and Budget consolidated in FY20.
5Building Services was disbanded and merged with Housing & Engineering in FY23 161
6Office of Neighborhood Support and Shared Prosperity created in FY23.
Page 1571 of 1713
TABLE 20
2020
2021
2022
2023
15.00
15.00
15.00
16.00
91.00
92.00
92.00
99.00
118.00
119.00
119.00
120.00
11.00
11.00
12.00
-
87.42
89.42
89.42
90.42
27.00
28.00
28.00
36.00
5.00
6.00
6.00
7.00
5.00
4.00
4.00
3.00
0.15
0.15
0.15
0.15
-
-
-
0.15
19.00
20.00
20.00
21.00
22.50
22.50
22.50
23.35
11.93
11.93
12.93
16.93
3.00
3.00
3.00
3.00
27.00
29.00
29.00
35.00
8.00
8.00
8.00
8.00
3.00
12.00
12.00
12.00
13.00
2.00
2.00
2.00
2.00
3.00
3.00
3.00
4.00
15.50
18.00
18.00
21.00
19.00
19.00
19.00
19.00
4.00
5.00
5.00
5.00
8.00
8.00
8.00
11.00
25.00
25.00
25.00
25.00
15.00
15.00
15.00
15.00
23.00
23.00
23.00
27.00
577.50
589.00
591.00
624.00
162
Page 1572 of 1713
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Public Safety
Police
Physical arrests
Traffic violations
Parking violations
Fire
Number of calls answered
Inspections conducted
Sewer
Sewage system
Daily average treatment in gallons
Maximum daily capacity of treatment plant in gallons
Water systems
Daily average consumption in gallons
Maximum daily capacity of plant in gallons
Refuse (Municipal Collection)
Tonnage
Sources: Various City Departments.
Statistics updated for fiscal year 2017.
Fiscal -
2014
2015
2016
2017
5,532
3,767
3,397
3,238
8,959
7,354
9,058
9,063
36,768
37,635
38,880
33,953
5,165 5,603 5,750 5,990
471 791 993 1,649
7,091,000 7,237,000 7,016,000 7,377,000
24,500,000 24,500,000 24,500,000 24,500,000
7,235,000 6,956,000 7,068,184 7,200,000
18,000,000 18,000,000 18,000,000 18,000,000
10,311 10,690 11,098 11,284
163
Page 1573 of 1713
TABLE 21
Year
2018
2019
2020
2021
2022
2023
3,519
3,403
2,830
2,491
2,573
2,783
9,415
8,369
7,156
5,312
6,317
6,411
32,857
25,685
18,044
20,428
19,851
20,428
5,949 6,058 6,304 7,277 7,814 7,696
1,675 1,232 1,260 296 807 763
7,900,000 7,930,000 8,730,000 6,682,013 6,682,013 7,120,000
24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000
6,917,000 6,133,000 6,210,000 6,390,000 6,510,000 6,678,000
18,000,000 18,000,000 18,000,000 13,000,000 13,000,000 9,317,000
11,481 11,569 12,212 13,482 13,290 12,769
164
Page 1574 of 1713
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 0
Street Lights
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 0
Miles of Storm Sanitary Sewer 0)
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
�') City GIS system
2014
2015
2016
2017
1
1
1
1
22
22
22
22
6
6
6
6
3
3
3
3
331
333
332
336
2,110
2,161
2,162
2,184
2
2
2
2
389
373
373
373
1
1
1
1
1
1
1
1
51
53
53
53
1,001
974
974
974
1
1
1
1
2
2
2
2
7
1 1
11
11
1
1
1
1
20
20
20
20
307 320 322 326
144 145 147 152
1 1 1 1
22,888 22,928 23,119 23,343
315 318 329 337
22,702 22,787 22,970 23,443
2,336 2,346 2,380 2,450
165
Page 1575 of 1713
TABLE 22
2018
2019
2020
2021
2022
2023
1
1
1
1
1
1
22
22
22
22
22
22
6
6
6
6
6
6
3
3
3
3
3
3
334
340
331
329
336
336
2,312
2,436
2,489
2,507
2,566
2,614
2
2
2
2
2
2
373
373
373
373
373
389
1
1
1
1
1
1
1
1
1
1
1
1
53
53
53
53
53
55
974
974
985
985
985
986
1
1
1
1
1
1
2
2
2
2
2
2
11
10
10
9
9
9
1
1
1
1
1
1
20
16
16
16
16
16
321
332
333
308
311
306
156
158
151
160
157
172
1
1
1
1
1
1
23,423
23,488
23,601
22,299
23,109
23,181
370
410
325
293
330
333
23,546
23,605
23,695
23,770
23,966
24,049
2,973
2,539
2,553
2,596
2,622
2,646
166
Page 1576 of 1713
CITY OF DUBUQUE, IOWA
RETAIL SALES
LAST TEN CALENDAR YEARS
TABLE 23
Taxable
Number of
Year
Retail Sales
Businesses
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
1,306,938,795
2,731
2023
1,408,633,086
2,509
Data Sources: Iowa Department of Revenue
167
Page 1577 of 1713
Compliance Section
June 30, 2023
City of Dubuque, Iowa
Page 1578 of 1713
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 (Government Auditing Standards), 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, 2023, and the related notes to the financial statements, which
collectively comprise the City's basic financial statements and have issued our report thereon dated
September 29, 2024, which contained an emphasis of matter paragraph regarding a change in accounting
principle. 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.
.:
Page 1579 of 1713
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 2023-001 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.
West Des Moines, Iowa
September 29, 2024
169
Page 1580 of 1713
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
Opinion on 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, 2023. 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, 2023.
Basis for Opinion on Each Major Federal Program
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America (GARS); 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.
170
Page 1581 of 1713
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 each 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.
171
Page 1582 of 1713
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.
West Des Moines, Iowa
September 29, 2024
172
Page 1583 of 1713
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
Pass -Through
Assistance
Entity
Amounts
Federal Grantor/Pass-Through
Listing
Identifying
Passed -Through
Grantor/Program or Cluster Title
Number
Number
Expenditures to Subrecipients
U.S. Department of Agriculture
Direct program:
Soil and Water Conservation
10.902
$ 44,414 $
Environmental Quality Incentives Program
10.912
17,467
Conservation Stewardship Program
10.924
1,085
Total U.S. Department of Agriculture
62,966
U.S. Department of Housing and Urban Development
Community Development Block Grant (CDBG) - Entitlements Cluster:
Direct program:
CDBG - Entitlement Grants
14.218
130,053
CDBG - Entitlement Grants
14.218
341,953
CDBG - Entitlement Grants
14.218
838,020
CDBG - Entitlement Grants
14.218
636,969
COVID-19 - CDBG/Entitlement Grants
14.218
195,834
Pass -through program from:
Iowa Economic Development Authority
COVID-19 CDBG - Entitlement Grants
14.218
20-CVE-004
204,587
Total CDBG - Entitlements Grants Cluster
2,347,416
Direct program:
Section 8 Project -Based Cluster
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation
14.856
31,913
Housing Voucher Cluster
Section 8 Housing Choice Vouchers
14.871
669,846
Section 8 Housing Choice Vouchers
14.871
5,156,229
Total Housing Voucher Cluster
5,826,075
Family Sufficiency Program
14.896
157,903
Lead -Based Paint Hazard Control in Privately -Owned Housing
14.900
626,887
Lead Hazard Reduction Demonstration Grant
14.905
430,576
Healthy Homes Production Program
14.913
221,158
Older Adults Hoe Modification Grant Program
14.921
172,770
Total U.S. Department of Housing and Urban Development
9,814,698
U.S. Department of Interior
Direct program:
Outdoor Recreation Acquisition, Development and Planning
15.916
540,789
Total U.S. Department of Interior
540,789
U.S. Department of Justice
Direct program:
Patrick Leahy Bulletproof Vest Partnership
16.607
14,800
Pass -through program from:
Iowa Department of Justice:
Violence Against Women Formula Grants
16.588
15JOVW-21-GG-00577-STOP
45
Pass -through program from:
Iowa Department of Justice:
Public Safety Partnership and Community Policing Grants
16.710
21-CAMP-04
2,178
Public Safety Partnership and Community Policing Grants
16.710
22-HEROIN-02
5,430
Public Safety Partnership and Community Policing Grants
16.710
19-COPS-HEROIN-02
876
8,484
Direct program:
Edward Byne Memorial Justice Assistance Grant Program
16.738
11,161
Edward Byne Memorial Justice Assistance Grant Program
16.738
33,232
Edward Byne Memorial Justice Assistance Grant Program
16.738
15,600
59,993
Total U.S. Department of Justice
83,322
The accompanying notes are an integral part of this
Schedule.
Page 1584 8R713
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
Assistance
Federal Grantor/Pass-Through
Listing
Grantor/Program or Cluster Title
Number
U.S. Department of Transportation
Direct program:
Airport Improvement Program
20.106
Airport Improvement Program
20.106
Airport Improvement Program
20.106
Airport Improvement Program
20.106
COVID019 - Airport Improvement Program
20.106
Highway Research and Development
Highway Planning and Construction:
Pass -through program from:
Iowa Department of Transportation
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Federal Transit Cluster:
Direct program:
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Pass -through program from:
Iowa Department of Transportation
Federal Transit - Formula Grants
Total Federal Transit Cluster
Pass -through program from:
Iowa Department of Transportation
Buses and Bus Facilities Formula and Discretionary Program
Total Federal Transit Cluster
Transit Services Program Cluster:
Pass -through program from:
Iowa Department of Transportation
Enhanced Mobility of Seniors and Individuals with Disabilities
Enhanced Mobility of Seniors and Individuals with Disabilities
Total Transit Services Cluster
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 Treasury
Pass -Through program from:
Iowa Finance Authority
COVID-19 - Coronavirus State and Local Fiscal Recovery Funds
Total U.S. Department of the Treasury
20.200
20.205
20.205
20.205
20.205
Pass -Through
Entity
Identifying
Number
Amounts
Passed -Through
Expenditures to Subrecipients
(7,907)
115,665
54,385
96,195
109,944
368,282
650,060
EDP-2100(696)-7Y-31
4,704
TAP- U-2100-697-81-31
418,662
TAP-U-2100(703)--81-31
95,000
TAP-U-2100(703)--81-31
95,000
613,366
20.507
20.507
20.507 2019-004-02-FY20
20.526
20.513
20.513
219,563
1,839,677
636,800
2,696,040
2019-008-02-FY20 1,154,782
3,850,822
IA-2021-018-00 10,843
IA-2022-008-00 61,397
72,240
20.600 PAP 22-402-MOPT 4,666
20.600 PAP 23-402-MOPT 7,284
11,950
5,566,720
21.027 1505-0271 3,350,766
3,350,766
The accompanying notes are an integral part of this Schedule. 174
Page 1585 of 1713
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
Pass -Through
Assistance
Entity
Amounts
Federal Grantor/Pass-Through
Listing
Identifying
Passed -Through
Grantor/Program or Cluster Title
Number
Number
Expenditures to Subrecipients
National Endowment for the Arts
Pass -through program from:
Iowa Department of Revenue
Promotion of the Arts Grants to Organizations and Individuals
45.024
1896170-66-22
481,737
Total National Endowment for the Arts
481,737
Environmental Protection Agency
Direct program:
Brownsfields Assessment and Cleanup Cooperative Agreements
66.818
83,383
Brownsfields Assessment and Cleanup Cooperative Agreements
66.818
55,742
Brownsfields Assessment and Cleanup Cooperative Agreements
66.818
168,259
Total Environmental Protection Agency
307,384
U.S. Department of Health and Human Services
Pass -through program from:
Dubuque County Health Department
Food and Drug Administration Research
93.103
R-BDEV-202110-01091
5,000
Total U.S. Department of Health and Human Services
5,000
Corooration for National and Community Service
Pass -through program from:
Iowa Commission on Volunteers
AmeriCorps State and National
94.006
21-AC-10
18,431
AmeriCorps State and National
94.006
21-AC-05
22,719
AmeriCorps State and National
94.006
22-AC-10
81,358
AmeriCorps State and National
94.006
22-AF-05
57,240
179,748
AmeriCorps Volunteer Generation Fund
94.021
23-VGF-12
2,912
AmeriCorps Volunteer Generation Fund
94.021
22-VGF-12
14,046
16,958
Total Corporation for National and Community Service
196,706
Total
20,410,088
The accompanying notes are an integral part of this Schedule. 175
Page 1586 of 1713
City of Dubuque, Iowa
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2023
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, 2023. 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, 2023. 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.
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City of Dubuque, Iowa
Schedule of Findings and Questioned Costs
Year Ended June 30, 2023
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
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City of Dubuque, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2023
Identification of major federal programs:
Assistance
Listing Number Name of Federal Program or Cluster
Housing Voucher Cluster
Federal Transit Cluster
CDBG Entitlement Grants Cluster
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
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City of Dubuque, Iowa
Schedule of Findings and Questioned Costs (Continued)
Year Ended June 30, 2023
Section II — Financial Statement Findings
Reference
Number Finding
Material Weakness
2023-001 Finding: Calculation in error in subscription based information technology asset and liability.
Criteria or specific requirement: Management is responsible for establishing effective internal
controls over financial reporting.
Condition: The incorrect contract terms for a subscription based information technology
agreement were used resulting in an error in calculation of the related asset and liability of
appro)amately $9.7 million. An audit adjustment was proposed and the City recorded.
Cause: Inadequate review of work performed by third party providers.
Effect: Misstatements could occur within the financial statements due to error or fraud and not
be prevented or detected in a timely manner.
Recommendation: We recommend management establish procedures to ensure all work
performed by third parties is reviewed and reconciled.
Views of Management: The City agrees with the finding. See separate report for planned
corrective actions.
Section III — Federal Award Findings and Questioned Costs
Reference
Number Finding
No matters are reportable
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City of Dubuque, Iowa
Summary Schedule of Prior Audit Findings
Year Ended June 30, 2023
Reference Finding Status
Number
Restatement of Prior Year Financial
Statements - During the course of the
2022-001 engagement, there were restatements to the
prior year financial statements for various
accounting errors. It was recommended to
make the corrections. Implemented
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City of Dubuque, Iowa
Other Findings Related to Required Statutory Reporting
Year Ended June 30, 2023
Reference
Number Finding
2023-IA-A Certified Budget - Disbursements during the year ended June 30, 2023 did not
exceed the 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."
2023-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.
2023-IA-C Travel Expenses - No expenditures of City money for travel expenses of spouses
of City officials or employees were noted.
2023-IA-D Business Transactions - Business transactions between the City and City
Officials or employees are detailed as follows:
Transaction
Name, Title, and Business Connection Description Amount
A Frame of Mind: Owner is spouse of City
Employee John Hefel Services $ 587
Brian Hodgson, City employee Cover crop 3,345
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.
2023-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.
2023-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.
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City of Dubuque, Iowa
Other Findings Related to Required Statutory Reporting (Continued)
Year Ended June 30, 2023
Reference
Number Findin
20231A-G City Council Minutes - No transactions were found that we believe should have
been approved in the City Council minutes but were not.
2023-IA-H Deposits and Investments - No instances of non-compliance with the deposit and
investment provisions of Chapters 12B and 12C of the Code of Iowa and the City's
investment policy were noted.
2023-IA-1 Revenue Notes - No instances of non-compliance with revenue note provisions
were noted.
2023-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.
2023-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,
2023-IA-L Financial Condition - At June 30, 2023, the City had two funds that had a deficit
balances.
Debt Service Fund
General Service Fund
$(164,295)
$(102,948)
2023-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
45513.310 of the Code of Iowa by the Dubuque Metropolitan Area Solid Waste
Agency, a component of the City, were noted.
2023-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.
ii OR
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Forvis Mazars Report to the Honorable Mayor, City
Council and Members of Management of the City of
Dubuque, Iowa
City of Dubuque, Iowa
Results of the 2023 Financial Statement Audit, Including Required
Communications
June 30, 2023
Required Communications Regarding Our Audit Strategy & Approach (AU-C 260)
Overview & Responsibilities
Matter Discussion
Scope of Our Audit This report covers audit results related to your financial statements:
• As of and for the year ended June 30, 2023
• Conducted in accordance with our contract dated September 18, 2023
Our Responsibilities Forvis Mazars is responsible for forming and expressing opinions about whether the financial
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 & An audit performed in accordance with auditing standards generally accepted in the United
Inherent Limitations States of America (GAAS) and Government Auditing Standards issued by the Comptroller
to Reasonable General of the United States (GAGAS) is designed to obtain reasonable, rather than absolute,
Assurance assurance about the financial statements. The scope of our audit tests was established in
relation to the opinion unit being audited and did not include a detailed audit of all transactions.
Extent of Our In addition to areas of interest and noting prior communications made during other phases of
Communication 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.
Independence 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 responsibilities. Your responsibilities and ours are further referenced in our contract.
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Matter Discussion
Distribution This communication is intended solely for the information and use of the following and is not
Restriction intended to be, and should not be, used by anyone other than these specified parties:
• Budget Committee
• Members of City Council
• Others within the Entity
• Federal awarding agencies and other pass -through award agencies
Government Auditing Standards
Matter Discussion
Additional GAGAS We also provided reports as of June 30, 2023, on the following as required by GAGAS:
Reporting Internal control over financial reporting and on compliance and other matters based
• on an audit of the financial statements performed in accordance with GAGAS
Reporting Our consideration of internal control over financial reporting and our tests of compliance were
Limitations not designed with an objective of forming an opinion on the effectiveness of internal control or
on compliance, and accordingly, we do not express such an opinion.
Uniform Guidance Overview & Responsibilities
Matter Discussion
Scope of Our Audit We also provided reports as of June 30, 2023, on the following as required by U.S. Office of
Management and Budget (OMB) Uniform Guidance:
• Opinion on compliance for each major federal award program
• Report on internal control over compliance
• Schedule of Expenditures of Federal Awards
Audit Scope & A compliance audit performed in accordance with OMB Uniform Guidance is designed to obtain
Inherent Limitations reasonable, rather than absolute, assurance about whether noncompliance with the types of
to Reasonable compliance requirements described in the OMB Compliance Supplement that could have a
Assurance direct and material effect on a major federal award program occurred.
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
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Page 1595 of 1713
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.
Other Information Accompanying the Audited Financial Statements
The audited financial statements are presented along with management's annual comprehensive 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 opinions do 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.
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
• Include the appropriate communication in our auditor's report, disclosing the procedures performed on the Other
Information, as well as the results obtained
Qualitative Aspects of Significant Accounting Policies & Practices
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:
• GAS 96, Subscription Based Information Technology Arrangements
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
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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 net pension liability and related deferred inflows and outflows
• Actuarial assumptions in the calculation of the other post -employment benefits (OPEB) and related deferred
inflows and outflows
• Valuation of investments
• Valuation of lease receivables and lease liabilities
• Valuation of subscription -based IT assets and subscription liabilities
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
Our Judgment About the Quality of the Entity's Accounting Principles
During the course of the audit, we made the following observations regarding the Entity's application of accounting
principles:
• No matters are reportable
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:
• SBITA asset and liability
Uncorrected Misstatements
• No uncorrected misstatements to report
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:
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• Adoption of GASB Statement No. 96, Subscription Based Information Technology Assets
Other Material Communication
Listed below is are other material communications between management and us related to the audit:
• Management representation letter provided by management at the conclusion of our engagement (see
Attachment)
We orally communicated to management other deficiencies in internal control identified during our audit that are not
considered material weaknesses or significant deficiencies.
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Attachment A
Management Representation Letter
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Docusign Envelope ID: E2A3517F-ED76-4AF6-9D59-DOF7D1D5240D
Representation of. -
CITY OF DUBUQUE, IOWA
50 West 13th Street
Dubuque, Iowa 52001
Provided to:
Forvis Mazars, 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 Mazars' audit of our
financial statements as of and for the year ended June 30, 2023.
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, 2023.
Our representations are current and effective as of the date of Forvis Mazars' report: September 29, 2024.
Our engagement with Forvis Mazars is based on our contract for services dated: September 18, 2023.
Our Responsibility & Consideration of Material Matters
We confirm that we are responsible for the fair presentation of the financial statements subject to Forvis
Mazars' 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 Mazars' 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:
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Page 2
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.
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 governing body 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
governing body, 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.
Federal Awards Programs (Uniform Guidance)
11. 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,
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Page 3
loan guarantees, property, cooperative agreements, interest subsidies, commodities, insurance,
direct appropriations, or in any other form.
12. 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.
13. We have reconciled the schedule of expenditures of federal awards (SEFA) to the financial
statements.
14. 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.
15. We have evaluated all recipient organizations that received federal funding and have correctly
identified all subrecipients on the schedule of expenditures of federal awards.
16. 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.
17. We are responsible for complying, and have complied, with the requirements of Uniform Guidance.
18. 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.
19. 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.
20. 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.
21. 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.
22. The costs charged to federal awards are in accordance with applicable cost principles.
23. 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.
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24. 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.
25. 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.
26. 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.
27. 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.
28. The reporting package does not contain any protected personally identifiable information.
29. 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
30. 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/fund balance.
31. 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.
32. We have no knowledge of any allegations of fraud or suspected fraud affecting the entity received
in communications from employees, former employees, customers, regulators, citizens, suppliers,
or others.
33. 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.
Related Parties
34. 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.
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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.
35. 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
• Component units
• 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.
Litigation, Laws, Rulings, & Regulations
36. 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.
37. 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.
38. 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.
39. 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.
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40. 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.
Nonattest Services
41. 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
42. 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. We have established and maintained internal controls, including monitoring ongoing
activities.
f. When we receive final deliverables from you, we will store those deliverables in
information systems controlled by us. We have taken responsibility for maintaining internal
control over these deliverables.
Financial Statements & Reports
43. 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.
44. 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.
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b. We have provided you with the final draft of the ACFR.
Transactions, Records, & Adjustments
45. All transactions have been recorded in the accounting records and are reflected in the financial
statements.
46. We have everything we need to keep our books and records.
47. 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.
Governmental Accounting & Disclosure Matters
48. Interfund, internal, and intra-entity activity and balances have been appropriately classified and
reported.
49. 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.
50. 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.
51. 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.
52. 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.
53. Capital assets, including infrastructure and intangible assets, are properly capitalized, reported,
and, if applicable, depreciated or amortized.
54. 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/fund
balance is properly recognized under the policy.
55. 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
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events with finance -related consequences, and significant subjective acceleration clauses in
accordance with GASB Statement No. 88.
56. 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.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.
57. 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.
58. 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
59. 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.
60. 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.
61. 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.
62. 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.
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63. 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.
64. 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
65. 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,.
66. 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.
67. 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.
68. We agree with the findings of specialists in evaluating the post -closure liability, pension liability
and OPEB liability 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
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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
69. 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
70. 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.
71. 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
72. 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
accounting principles generally accepted in the United States of America.
e. There are no subsequent events that require adjustments to the fair value measurements
and disclosures included in the financial statements.
Tax -Exempt Bonds
73. Tax-exempt bonds issued have retained their tax-exempt status.
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74. We have notified you of any instances of noncompliance with applicable disclosure requirements
of the SEC Rule 15c2-12 and applicable state laws.
New Accounting Standards
GASB Statement 96, Subscription -Based Information Technology Arrangements
75. In connection with the adoption of GASB Statement No. 96, Subscription -Based Information
Technology Arrangements (GASB 96), we represent the following:
a. We have identified a complete population of potential subscription -based information
technology arrangements (SBITAs) as of the implementation date.
b. We have reviewed all significant contracts to identify subscription and nonsubscription
components as of the earliest date of adoption. Allocation of costs between subscription
and nonsubscription components are based upon standalone prices or other reasonable
factors.
c. Measurements of the subscription 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 SBITA terms within the
measurement of subscription liability and an intangible right to use IT subscription asset
agrees to management's plans for the SBITA.
e. The discount rates for each SBITA are based upon what would be obtained by the entity
for similar payment amounts during the subscription term as an incremental rate.
f. We have adequate controls in place to prevent and/or detect errors in subscription assets
and liabilities on a recurring basis.
g. The footnotes to the financial statements appropriately describe the adoption of GASB 96
and include all additional disclosures required under the GASB 96.
FDocuSigned by:
un." (ow"
Jenny Larson,
jlarson@cityofdubuque.org
Signed by:
W Vt Auss
Brian a Fs96?'Pf)bf;6e Manager
bdemoss@cityofdubuque.org
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