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Fiscal Year Ended June 30, 2025, Annual Comprehensive Financial Report Copyrighted June 15, 2026 City of Dubuque ACTION ITEMS # 1. City Council ITEM TITLE: Fiscal Year Ended June 30, 2025, Annual Comprehensive Financial Report SUMMARY: City Manager transmitting the Fiscal Year 2025 Annual Comprehensive Financial Report and Finance Manager Brian DeMoss will make a presentation. SUGGUESTED Receive and File, Presentation DISPOSITION: ATTAC H M ENTS: 1. 2025 ACFR Submission MVM memo 2026 15 06 2. 2025 ACFR Submission Staff memo 2026 15 06 3. City of Dubuque Audit 2025 4. City of Dubuque ACFR FY2025 Page 1307 of 1594 Dubuque THE CITY QF � All•li�eriea Ciry DLT B E ��, . � �� MaSt� Z�C� alZ t�Q Mt55ZSSZ Z zoa�•zoiz•zai3 �' pp zai�*zaig TO: The Honorable Mayor and City Council Members FROM: Michael C. Van Milligen, City Manager SUBJECT: Submission of Fiscal Year Ended June 30, 2025 Annual Comprehensive Financial Report (ACFR) DATE: June 11, 2026 Chief Financial Officer Jennifer Larson and Finance Manager Brian DeMoss are transmitting the Fiscal Year 2025 Annual Comprehensive Financial Report (ACFR). The City's independent auditor issued an unmodified opinion on the financial statements. Finance Manager Brian DeMoss and a representative of the auditing firm Mauldin & Jenkins will make presentations, and then Finance Manager Brian DeMoss, Chief Financial Officer Jennifer Larson along with a representative of Mauldin & Jenkins LLP, are available to answer questions. I respectfully recommend you receive and file the Fiscal Year 2025 annual audit. � Mic ael C. Van Milligen MCVM:jh/sv Attachment cc: Crenna Brumwell, City Attorney Cori Burbach, Assistant City Manager Jennifer Larson, Chief Financial Officer Brian DeMoss, Finance Manager Page 1308 of 1594 Dubuque THE CTTY O� � D All-America Ciiy UB E �.�K,.� , � � . ,�� Maste iece on the Mississi i Z°°'.z°lz.z°13 �P pp �oi�*Zar9 TO: Michael C. Van Milligen, City Manager FROM: Jennifer Larson, Chief Financial Officer Brian DeMoss, Finance Manager SUBJECT: Submission of Fiscal Year Ended June 30, 2025 Annual Comprehensive Financial Report (ACFR) and Results of the 2025 Financial Statement Audit DATE: June 11, 2025 INTRODUCTION The purpose of this memorandum is to submit the Fiscal Year 2025 ACFR audited by Mauldin & Jenkins, LLC and Results of the 2025 Financial Statement Audit. The City's independent auditor issued an unmodified opinion or "clean" opinion on the financial statements. BACKGROUND lowa 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 1309 of 1594 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. ACTION STEP It is recommended that the City Council receives and files the Fiscal Year 2025 reports identified above and receives and files this communication and related enclosures. Finance will make a brief presentation at the City Council meeting and Mauldin & Jenkins will present on the audit opinion and be available for questions. JML Enclosures: Fiscal Year 2025 ACFR Page 1310 of 1594 .. �`�'-�� 1� _ r; ��1�r� ��1�� `_, ` � _. C I TY O F D U 6 U Q U E �� ,�,,��'}l� � �_ : ' ,'�� ,� .i�� .v�'� � ��. � � y � � �.-�. �; :. � .,�-x��,a�r ��.' ��,'��i�� R ,�. �,,,:4;',.�, � �'�; '� �.� �,� �_ �';��+'ir•�'• i,��+�1 si:'�'.,�`� .�.w t . �.•': .. � �W� �' s' �;.�� ' f' � .�,�, !�, � �°'� � ` �!C �.'y� .i �1 �, �u i� >f: � � � , � �f : t�.. '� �f ui . ��`•'., I= q � .�,. � '''� �1 � �° �-�� :3� i! '��r,j�� !.!��^+ 'f .,�� d � rr f� . ";l��' ' �• i�i�� "a��r��l�� fj�� -r '�.•.�,�\ � '� � �, .� ��;� !�",°.�.�;��: AUDIT PRESENTATION TO THE CITY � �'�bR fry T ,. � .� �,_w.,-,�,�� COUNCIL `��.'' '�' �; �&'� =�%,�� , ._ - _...,�.. .P- � �} �.,� ' � , . � �, 4 J �,'�� Y�, l .�1��,r� +�+i � r1 . FOR YEAR ENDED JUNE 30, 2025 a �� ` =�� ;.�J!�.� _` � �� ,. � �,,,�� g�� " �'ry �r .r � ` r� r� � �� - , i��H �, �y ' .S.��rl;.'•;� �. :.�r' • " �S fi �- �.� ;. . . ` , ' �^��, � L - �;� a�� ._ ��'�� `� � �;< _ � ' � ,�. `�.:�_� ... �.\j F� m�" � � ' �'I' � �.I.'i �. �"� � - . .1 � � ' 1 � ., � �"I . ��. I .- � , ��1� � r.. � Page 1311 of 1594 1 1 1 , � . 1 1 � i The audit provides a Audited financial statements Recommendations to professional opinion of the provide reliable financial strengthen and improve the financial condition of the information to evaluate the management and efficiency government unit. financial health and stability of the governmental unit. of the governmental unit. Ensure that the local government is in compliance with all applicable legal provisions. z -..- . •, FINANCIAL AUDIT 1�1� Financial audit performed annually _� Required by the Municipal Oversight Law and governmental auditing standards W�� 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 �y Performed by persons not in any way affiliated with the City in order to ensure complete objectivity and professionalism � ACFR (Annual Certified Financial Report) Presents financial statements, additional financial information and compliance �� information. — � Page 1313 of 1594 COMPLIANCE AUDIT Auditors perform compliance audits in which the auditor Compliance audits have always reviews operations in terms of been a vital art of compliance with various laws p and re ulations re ardin governmental audits. g g g grants and financial operations. O Page 1314 of 1594 �r__°`c`-=rz.- �� f■ � T��'� �� _�} `, ...f,�R� � � • � I� � 1 T;�r.3-.��,,sai�i(�p �+ . r � � �r' �� - � • ,; � �, �„� � �� ,�` t,��`+!�� r� AUDIT RESULTS �� 1 � z�� tl � � .,,,,'"` x � , ;� � +r�. �-- !i! a �a'�'.�1/1�r�^N/� �l;�Ih,� ,'�': � � ,� '�`:L ��.ir .� �.-:�• .� � :��I .r. �y r�'� ' �� }: � , �,� ��. �F• �� i . ,� � �i� � _ ' { s �,'� - %a 4�f I .�t�if �,/ • David Irwin Mauldin & Jenkins Partner + ' ��, ;��:��` ;��r :°;;.��4� � �� I��,' ,�j ; �� y�7 r A' � � /�R./;"; � 1y'L��:� � f ' � T;'.'�� N ' - !' ` ��' �,�� .,y,!� _ � ;. '�'F.� � j } 'a F � e� � �j��'�',�I�ll ,�`�� `. � •., • Auditors' Opinion on Financial ' ��, �� , ��, , �--.,, � Statements — U n mod if ied �`� ��Fy ��' �� a�� • Sometimes referred to as a "clean" audit. � '= '- +'j;��_:� � ;- ._��, This is the highest level of assurance - � ' d � �� ` � � � � auditors can provide over financial � ;�� statements. � -- � � � ��+U -� � ¢ � �- '. - -�, ',� _:/ � ' • Financial Statements are materially accurate - �,� � .�� • No disagreements with auditors 0 Page 1315 of 1594 ACFR REPORT � b � �� I � �� _ �� - ,, �: -,�� • KEY SECTIONS � ' '� --� ` �� , ' I '�, �''' • Introduction . '� �-- , � _ � . • Financial � ' � ' ;; ;;, 'i , ` � A ' i ,u I� • Auditors Report � , � E�' E;` "` �� `� �� _- � = , � �� a � � i • *Management Discussion and Analysis* ,- ; '� t� t,,,,; .� _�; � � ;; �� . ,;,,;; ; • Government Wide Financial Statements � � " � : � ,. ,��„� �, 1� � �� ,�,,, � � „ � ,��,�„, Fund Financial Statements �— """ ' �, �' " . ��,3� , . • *Notes to the Financial Statements* � � � -- -- -- • Supplementary Information - _ -- -- • StatIStlCal, Historical Information • Compliance • SEFA • State Required Reporting 0 Page 1316 of 1594 MANAGEMENT'S DISCUSSION AN D ANALY51 S - � N i�, `,,.. �' t-�,,, '� ;i� � � ' .0. e: __ �" 7 . '�:� ., � F:—� • Discussion and analysis of the City's financial � ��,__�� '`�� '�- ___ performance during the fiscal year � � I I- - R - - � • Financial Hi�hli�hts FY 2025 --� . _ _..---�' _=• � _. ,— � � Net Position (Assets Less Liabilities) Increased to - � � 773,090,541. � Business Type Revenues, increased by approx. 10 Million. i r • Governmental Expenses increased by 5.8 million, due to additional development costs, street maintenance costs, and additional employee costs. • Overview of the FS � Provides Details and Highlights of each statement and key areas. 0 Page 1317 of 1594 �� - .,�i��?.�1��'w?.'�'f' -V�` 'f 'i#.;-*�' :��_i�'�. - I rt ,y ,x _� � i �,-. � �'`}�� 't� '"./{.;��. ,.�'��':: i�, � �r�: } ��_€, }� r_�+..* :i �+�� 'f.-"�w f"4 �� *•+'`w'` •�'�` •� •�'-<��" FI NANCIAL STATEM ENTS ' � - +� `- � � _ * �� y ��f`.�w' F' "'�� y,�� 1`��#Y" ..-+��'. � I `�r,r•r^ � �" 4 ' �"';�°�i� t�'�.- ' :,��►��. C'' �' � . a��RV . -_ -,.L i Government Wide � �-�� . ` �,. �'."�� { � �`��-i -'' , �:-, .��_� � � _ ��-_ K 4��+ � 4,�F � ��.F � � ;ti'�f.T�tk':f ��.'.� `-��Yy'�� 3 �Y�r' � • Broad Overview of the Cities Finances �h�:-:�y��-=y�;� �,�- �� J 1�� , , f � �� \��I`��';f� 44 � y 1 '�.`�� r • Full Accrual Accounting, Long Term �-Y_ ="��•�� "�``- ,;;� -_��` `_ _.,:�_.. �,� .� ;;�.� • - � .�� . �, Debt and Capital Assets in - •'�' Y ,� ��;1� �� . Governmental Funds ..� �� l , � � � �+► � �' - �4 ��;� x. :�'.� , . � �' �4 �.. ��f ry"- � �*J!iL�;+ C • Fund Statements .- � ��' � - � - � � {. .� ��`b � • Government Funds -� -__ __ ��.,� ; � �� , a • Modified Accrual (Does not include ...��:,�*°�, -�'�:_�� . } �: _� .�, certain long term items) �-�-� �• �� ,�� . . • Includes General Fund, Debt Service, and Capital Project Funds • Enterprise Funds • Full Accrual • Sewer, Water, Stormwater etc. � � Page 1318 of 1594 FINANCIAL STATEMENTS � ,- � -� _ , , , • General Fund Hi hli hts , � -� �� , - � g g � - , ��, - - �` � � ��I ,�� W,,�� , ,I ` �,', �f�,�'b 'I�� , � r � � � � _ p � ��'�� "�"�i�� ,,:!` ya � ,�d� '�._ � I�A� `�` �`r � � Unassigned Fund Balances - 42.9 /o of �,,�=� �_ : - --- �� - „ General Fund Expenditures � � :�- _ - `-��' -- — ,6 - - �_ m � , �� . , �' � � �°�l�� , • Revenues Increased in FY 25 Specifically �� .�°'�`� �"'�. � "` �`� t .�� . related to Interest Income and Charges _ �_ _ ',��-�_�� ,.� , � for Services � Expenses also increased related to the purchase of capital assets. Page 1319 of 1594 FINANCIAL STATEMENTS - � j; � s ,.� `-�. ��s"`�. � ��. �� ....,� a� :� . , �'' �',w +# '*.ug.V`:; � F� = . � � �� su .°*� Y �D� _ .,3 ' Y �.�' �r•i _ - �, , x �;�'� ; — - s ,y� �',�.-m'r�„ .. _ . . . �. ..,_ _ ' - �, ,�� 3 „ry''�. '� �� ,yar� � �„1. A� - � '�� '� n t ��{��a� � ' � W --�� '�"1 '��°�..� ��. • Notes to Financial Statements _- � � ' -_ � �__ _ ry_ '� -, ' ,�'�"� �� ,�,�� . z_ � ; � �� .� �. . � � �,,,�,�;�, ��_ �--R��T : � �� . � �� -- .� � � �� _ �, � ��.,. � � �_� � • Provides Details and Discussion of � � ��. � � � , �� - �� -m..�� 1 . : �.��r� �-,�-�.� .. Each Financial Statement Line Items _��a 'L�� .�� "� :�� r� � _` � - - � y � �� .� � „� _ . . ,�,� _?,�`�.y.mn.,�wrx..�� i�!� �0�ri�" p:a .� �� . _ • ,� _ �a i � � ' �-r=r �: ■�■ � a� � � • Key Notes include the following: ��=��=� ° �� '° �'� ��_ �- �n �� ,� ��__��..�:�� .--_ �,��,�� , � • Note 1 - outlines the Cites significant � �� —�` �- m � ► �� f •�_ ��+�►�',��.4� _:� � . � � � � �... . ,� �. - . �� accountin olicies �-�� _: =��_�� - � � � g p -��_ a . _ - _ j, ,__ �-� - . • Note 6 — Capital Assets — Equipment, ¢ -� � � � , �� ° ��;j�" �- �� .:�.- �- , s�� . ,-� Buildin s Infrastructure Balances m ��o�� ` � � � g , �� . .. �oo � .� ; , � • Note 7 — Long Term Debt — Outlines �—''i��- � � u � -�, s=� _- Cities long term debt by type, and overall balances. 10 � Page 1320 of 1594 COMPLIANCE SECTION �. .� - � , �I � • Auditor Reports on: -`� _ �� • Internal Control '' I �� `� ---,, • l i n r I `� `� � � '�' � Comp ance and Internal Co t o with . � �__ � , � Major Federal Programs ; ; � � � - � ' � ' ;ii iii I� ' l� M • No Findings or Noncompliance Noted. � ;: � ;�� f�F �� s— �, �__ ,_: EI EI 1 � �I � �A . G� � � i tt � � iiiiii -....i ,?'.i � � jj li � iiiiii ....:i • Schedule o Federal Awards �� ' �� ° ' .�� <<�� j ��3� � i�� . . • Detailed Listing of Federal Dollars � � �"' -- �-- -- 1 Spent by Grant - - -- • Other Findings • Findings and Information Related to State Compliance Audit 11 � Page 1321 of 1594 �, � � .`�,�"r':'..�i . ., i �} R+r'is.'� .1; % • �'f:'� , ' ',r � ` �..�/-.. , • �. ' r-�1 'f.� ,� '., _ �-1I;r�� `"�` ::��• f -.;�aF�- - � ' . s.�: r`: .�:;P . ,i•.�` • - '.N� . _ � n_... .k.:�_ �s ��i� ;�`. �, d�-;r- R�I '�.:� `:�I�T '�r.�k.., �-..: .. " . i '" ...1' ,. � L �b �"Ya�'' � � .} r,r�`.^�'w::4 k..��.�� 4 �� -r': ;.j;;;�ii`��'�-�'��:;�'� F;4 ', .."i�'�,� _ �r�.. ��:•�i .�-:i f:�>-:s':' -i}� �:.;:�!.,.'e:.-� . , . 7..4; ..0.�" •��. � .k.�.. , r. y� -�.` � .S i'.{"`p�a "[�=�r�` _:. `�� q� '��+:=;�:.�f�rg.,.. ;:�,� .;. _r:� ��?�{�.:� � 1 - •��.'r- � • �w�`�'� z � . z . .yr� .ria �� ..i e ..��' � .�`�:."-. .:. 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T!-fF C[TY C7F ■ ■ � � � , , DUB E Mrz�tcl��iE•«•ui� t!r€�MitisititiiF��3i Page 1323 of 1594 Photo Courtesy of: City of Dubuque Staff Cover Design by: Kristin Hill Page 1324 of 1594 Annual Comprehensive Financial Report For the Fiscal Year Ended June 30, 2025 City of Dubuque, Iowa Prepared by: Department of Finance Page 1325 of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1326 of 1594 Introductory Section June 30, 2025 City of Dubuque, Iowa Page 1327 of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1328 of 1594 CITY OF DUBUQUE, IOWA TABLE OF CONTENTS Exhibit Pa e INTRODUCTORY SECTION(Unaudited) Table of Contents 1-2 Letter of Transmittal 3-10 City Organizational Chart 11 Officials 12 Certificate of Achievement for Excellence in Financial Reporting 13 FINANCIAL SECTION Independent Auditor's Report 14-18 Management's Discussion and Analysis(Unaudited) 19-28 Basic Financial Statements Government-wide Financial Statements Statement of Net Position 1 31-32 Statement of Activities 2 33 Fund Financial Statements Balance Sheet-Governmental Funds 3 35-36 Reconciliation of the Governmental Funds Balance Sheet to the Statement of Net Position 3-1 38 Statement of Revenues,Expenditures,and Changes in Fund Balances-Governmental 4 39-40 Funds - Reconciliation of the Governmental Funds Statement of Revenues,Expenditures,and Changes in Fund Balances to the Statement of Activities 4-1 41 Statement of Net Position- Proprietary Funds 5 43-46 Statement of Revenues,Expenses,and Changes in Fund Net Position 6 47-48 Statement of Cash Flows-Proprietary Funds 7 49-52 Statement of Fiduciary Net Position-Custodial Funds 8 53 Statement of Changes in Fiduciary Net Position-Custodial Funds 9 54 Notes to Financial Statements 55-117 Required Supplementary Information(Unaudited) Schedule of Receipts,Expenditures,and Changes in Balances- Budget and Actual (Budgetary Basis)-Governmental Funds and Enterprise Funds 119 Note to Required Supplementary Information-Budgetary Reporting 120 Schedule of the City's Proportionate Share of Net Pension Liability-Iowa Employees' 121 Retirement System Schedule of City's Contribution- Iowa Employees'Retirement System 122 Notes to Required Supplementary Information-Net Pension Liability IPERS 123 Schedule of the City's Proportionate Share of Net Pension Liability-Municipal Fire and Police Retirement System of Iowa 124 Schedule of City's Contributions-Municipal Fire and Police Retirement Systems of Iowa 125 Notes to Required Supplementary Information-Net Pension Liability MFPRSI 126 Schedule of Changed in Total OPEB Liability,Related Ratios and Notes 127 Supplementary Information Combining Fund Statements Combining Balance Sheet-Nonmajor Governmental Funds A=1 131-133 Combining Statement of Revenues,Expenditures,and Changes in Fund Balances- A-2 135-137 Nonmajor Governmental Funds — Combining Statement of Net Position-Nonmajor Enterprise Funds B=1 138 Combining Statement of Revenues,Expenses,and Changes in Fund Net Position- Nonmajor Enterprise Funds B=2 140 Page 1329�of 1594 CITY OF DUBUQUE, IOWA TABLE OF CONTENTS Exhibit Pa e FINANCIAL SECTION(continued) Combining Statement of Cash Flows- Nonmajor Enterprise Funds B=3 141-142 Combining Statement of Net Position-Internal Service Funds C=1 145-146 Combining Statement of Revenues,Expenses,and Changes in Fund Net Position(Deficit)- Internal Service Funds C-2 147-148 Combining Statement of Cash Flows- Internal Service Funds C-3 149-150 STATISTICAL SECTION (Unaudited) Table Pa e Statistical Section Contents 152 Financial Trends Net Position by Component 1 153-154 Changes in Net Position 2 155-158 Fund Balances of Governmental Funds 3 159-160 Changes in Fund Balances of Governmental Funds 4 161-162 Revenue Capacity Taxable and Assessed Value of Property 5 163 Property Tax Rates- Direct and Overlapping Governments 6 164 Principal Property Taxpayers 7 165 Property Tax Levies and Collections 8 166 Debt Capacity Ratios of Outstanding Debt by Type 9 167-168 Ratios of General Bonded Debt Outstanding 10 169 Direct and Overlapping Governmental Activities Debt 11 170 Legal Debt Margin Information 12 171-172 Revenue Debt Coverage 13 173 Water and Sewer Receipt History 14 174 Water Meters by Rate Class 15 175 Largest Water and Sewer Customers 16 176 Sales Tax Increment Actual Receipts and Cumulative Sales Tax Balance Remaining 17 177 Demographic and Economic Information Demographic and Economic Statistics 18 178 Principal Employers 19 180 Operating Information Full-Time Equivalent City Government Employees by Function/Department 20 181-182 Operating Indicators by Function/Program 21 183-184 Capital Asset Statistics by Function 22 185-186 Retail Sales 23 187 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 188-189 Independent Auditor's Report on Compliance with Requirements for Each Major Program and on Internal Control Over Compliance Required by The Uniform Guidance 190-193 Schedule of Expenditures of Federal Awards 194-196 Notes to the Schedule of Expenditures of Federal Awards 197-198 Schedule of Findings and Questioned Costs 199-201 Summary Schedule of Prior Year Findings Z�2 Other Findings Related to Required Statutory Reporting 203-204 Page 133(�of 1594 D�buque THE�1TY OF � Finance Department u�n�� 50 West 13th Street �� • � � Dubuque,Iowa 52001-4805 � � i Office(563)589-4133 Fax(563)690-6689 �aa�•�a��o�3 TTY(563)690-6678 ��?4��1'�7��'�'� �� 7� 1�1$�1$��7�d �Q�,?�r�OJ,9 finance@cityofdubuque.org www.cityofdubuque.org Apri14, 2026 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, 2025. 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 Mauldin and Jenkins conducted the audit for fiscal year 2025. 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, Page 1331�of 1594 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 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 City's 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 June 2025, the City's unemployment rate was 3.1%, above the state unemployment rate of 2.8% and below the 4.1% 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 26% 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 Page 133�of 1594 recognized the community's efforts to diversify its economy. Local unemployment rates are above (3.1%) statewide (2.8%) and below the national (4.1%) figures. Industrial In fiscal year 2025, 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 Center South (DICS), the Kerper Boulevard industrial area, and the Dubuque Industrial Center Crossroads (DIC). The Dubuque Industrial Center West and South (DICW and DICS) together have a total of 713 acres of developable land. These industrial centers contain more than forty-five different 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 2025, the DICW saw one business expansion project. Universal Tank and Fabrication, Inc. constructed a 30,000 square foot addition to its facility. This project retained 40 full time positions in Dubuque while creating 10 new full-time jobs. Also in 2025, FEH Design purchased property at 902 Main Street for rehabilitation and creation of a new headquarters. The project will retail 11 full time positions within Dubuque while creating 10 new full-time jobs. Also in 2025, 400 Ice Harbor, LLC (a subsidiary of Hodge Company), acquired property in the North Port to expand its corporate workforce. On Bluff Street, Woodward Communications remodeled its existing facility to bring WHKS & Co to the City of Dubuque. At 781 Locust Street, CSDC, LLC (a subsidiary of Cottingham and Butler) invested $12 million dollars to build out a state- of-the-art childcare center to support the needs of its growing workforce. Commercial and Retail Downtown Development: Over $1.2 billion has been invested in the downtown area over the past 30 years 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 (now UMB) and Cottingham & Butler employees at this location. This continued use of an iconic historic building in Dubuque's downtown supports our local retail. The Dubuque Museum of Art has a $69 million state-of-the-art facility/campus under construction. And Cottingham and Butler has invested $9 million for the development of the New Horizon Academy childcare facility on that same block. Other downtown development: - Medical college (S00 Main Street), construction of a new 4-story osteopathic medical college ($33 million). - 5th & Main (501 Main Street), construction of a 5-story mixed-use building including 8,000 square feet of first-floor commercial space and at least eighty (80) rental residential units ($24 million). - Key Hotel and the Q Casino (1825 Greyhound Park Rd), construction of a new 7-story Luxury Hotel with Amenities ($39 million). Kinseth Hospitality Company has agreed to invest $18 million to create a 90 room Marriott brand hotel in the North Port. Riddle Group has agreed to invest $10 million for the rehabilitation of the Grand Harbor Resort. 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 Page 1333�of 1594 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 2026. To date, the public and private sectors have cooperated to invest more than $175 million into the transformation of the Millwork District and it is attracting entrepreneurs, residents, institutions, and businesses that are fueling Dubuque's competitive economy. Commercial Development: In 2025, Asbury Plaza continues to be developed with the additions of Starbucks and Brakes Plus. Other notable commercial projects that were reviewed, completed or under construction during the fiscal year include: - Wanderwood Gardens (3800 Arboretum Drive) - Three-acre immersive woodland playground with classrooms, event spaces, and immersive outdoor experience ($10 million) - University of Dubuque (1100 Airport Rd) - Construction of a new 43,000 square foot hanger ($10 million) - Kwik Star Convenience Store and Gas Station (730 Airborne Rd) - Dutrac Community Credit Union (380 E. 14t'' Street): New Construction - Kraus Enterprises LLC Multi-bay Carwash (1061 Cedar Cross Road): New Construction - Callahan Construction (7619 Commerce Park): Building Expansion - Horsfall Storage (8205 Seipple Court): New Construction - Finnin Kia Car Dealership (4355 Dodge Street): Building Expansion - Peosta Storage (1820 Radford Road): New Construction - National Mississippi River Museum Otter Exhibit(350 E. Third Street): Building Expansion - Portzen Multi-Tenant Building(6600 Boulder Brook Court): New Construction Residential In fiscal year 2025, the City of Dubuque saw an expansion of residential projects. Residential development included market rate apartments, single-family lots, duplex lots, and workforce housing units. The following residential developments were reviewed, completed, or under construction during the fiscal year: - CAL5 LLC Properties (3150 Lake Ridge Drive); 14-unit market rate housing development - Century Square Apartments (1502 and 1504 Bries Dr); 56-unit market rate housing development - The Landings on Cedar Cross (300 Cedar Cross Rd); 180-unit market rate housing development in six(6)buildings - 799 Main, LLC (799 Main Street); 36-unit market rate housing development - Farley&Loetscher(801 Jackson Street); 125-unit market rate housing development - 5th and Main, LLC (799 Main Street); 102-unit market rate housing development - Millwork Flats (1065 Jackson); 62-unit market rate housing development - Union at the Marina (Hawthorne Street); 201-unit affordable housing development in two (2)buildings - Emri Apartments (Radford Road); 48-unit affordable housing development - Fox Hills Apartments (Plaza Drive); 390-unit market rate housing development in thirteen (13) buildings with clubhouse and associated detached garages and outdoor boat/RV storage. - Former St. Anthony School (2175 Rosedale Avenue); 22-unit market rate housing development - South Pointe Townhomes (Rolling Creek); two 3-unit market rate townhomes Page 133�of 1594 - Numerous other residential housing developments throughout the downtown totaling 38 market rate units In addition, three parks were constructed in the English Ridge, Westbrook and Eagle Valley Subdivisions. Health Services 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. The integration of Grand River Medical Group (GRMG) and UnityPoint Clinic occurred May 4, 2025. GRMA's physicians, advanced practice providers and team members became part of UnityPoint Clinic and clinic locations are owned and operated by UnityPoint Clinic. Medical Associates Clinic is in the process of grading 51/2 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 digital optometries and pediatric dental and oral surgery The clinic continues to expand oral surgery and other services based on community needs. Crescent acquired In Focus pharmacy, located on the second floor of 1690 Elm Street, and now offers pharmacy services. 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. 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. MAJOR INITIATIVES For the Year. The City of Dubuque staff, following the adopted priorities of the Mayor and City Council, has been involved in a variety of projects throughout the year. These projects reflect the City's commitment to continue to provide high quality services to the residents and stakeholders of Dubuque within the budget guidelines set by the mayor and city council. Each year, the Council completes an annual goal-setting process to identify priorities for the next 12-18 months. Top priorities for 2025 included: • Commercial Air Service Future: Strategy and Action Plan to Sustain and Expand • Comprehensive Fire Station Location and Facilities Study • Fire Department Staffing Increases • Police Department: Full Staffing and Hiring • Sanitary Sewer Investments and Implementation � Catfish Creek Sanitary Sewer Project � Cedar Street Lift Station and Force Main � Chaplain Schmitt Island Sanitary Sewer Page 1335�of 1594 � Cooper Place/Maiden Lane Project � Grove Terrace Project � Harvard Street Project � Hempstead Street Project � Sanitary Sewer Force Main Stabilization Project � Sanitary Sewer Consent Decree Compliance � Terminal Street Lift Station and Force Main � Other Projects • Sports Complex Development • Stormwater Management Investments and Implementation � 17th and Elm Street Stormwater Project � 17th and Locust Street Stormwater Project � Bee Branch Gate and Pump Station Project � Detention Ponds Maintenance � Individual Neighborhood Investments � Kaufmann Avenue Storm Sewer Improvements • Street Maintenance/Rehabilitation Program 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: • Vibrant Community: Healthy and Safe • Financially Responsible, High-Performance City Organization: Sustainable, Equitable, and Effective Service Delivery • Robust Local Economy: Diverse Businesses and Jobs with Economic Prosperity • Livable Neighborhoods and Housing: Great Place to Live • Sustainable Environment: Preserving and Enhancing Natural Resources • Connected Community: Equitable Transportation, Technology Infrastructure, and Mobility • Diverse Arts, Culture, Parks, and Recreation Experiences and Activities FINANCIAL INFORMATION Interna,l 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. Page 1330�of 1594 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 in excess of $5 million during fiscal year 2025. 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. Rish 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. Bond Rating: Moody's Investors Service maintained the Aa2 rating on outstanding general obligation unlimited tax (GOULT) debt in January 2025; a Aa2 rating on outstanding second lien sales tax increment debt that is ultimately backed by an unlimited property tax pledge; and the City continues to have a A1 rating on outstanding senior lien sales tax increment revenue bonds. The Aa2 rating reflects . Moody's credit analysis states, "the City of Dubuque's local economy benefits from its role as a regional economic center, with solid resident income and full value per capita. Financial operations are strong and will remain so despite declines in fund balance over the next few years, as it expends funds from the pandemic. Long-term liabilities and fixed cost ratios are moderate and will remain so despite future borrowing needs." According to Moody's, the Aa2 issuer rating for the City of Dubuque's bonds reflects the city's healthy economic base, which serves as a regional economic center. Other rationale stated for the rating include full value per capita and adjusted resident income are solid at around $109,000 and 98% respectively, though weaker than Aa peers, in part because of a large student population, available fund balance was strong at around 60% of revenue at the close of fiscal 2023 (year-end June 30), and cash was stronger at 85% of revenue. The City's available fund balance will likely remain well over 45%, despite some planned draws in fiscal 2024 and fiscal 2025 to spend down federal funds from the pandemic. Despite the state adopting new property tax restrictions, revenue raising flexibility remains strong because the City maintains significant margin in its employee benefits fund and is not utilizing its emergency levy. The long-term liabilities ratio will likely remain well under 300% inclusive of the current issuances and future borrowing plans, and fixed-costs ratio will remain well below 20%. 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. Page 133�of 1594 AWARDS AND ACKNOWLEDGMENTS 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, 2024. This was the 37th 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, 2026. 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 19th 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. Achnowledgments: 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, Mauldin and Jenkins, whose competent assistance and technical expertise have enabled the production of this report. Sincerely, ; } �� { � . +� �-�� Michael C.Van Milligen Jennifer M. Larson City Manager Chief Financial Officer Page 133�of 1594 n�cnr,r am • � • � �� . . Lilarary _� �_ ` � � IVlanagementlStrategi�Partnerships Sustainat�ility Community Impart Communi�ations &Neighbarhood � �uRR�Yt Multicultural FamilyCenter � Economic Engineering � Developm ent Arts&Cultural Faeilities Affairs Ivlanagement Ernergency Fire Cammuni�atians Ambulance Emergeney Services Management Hausing & Finance Community � Develgpment Inspection& �onstruction 5ervices Health Human Service� Rights Hurnan Parks& Resaurce� Recreatian Parks Recreation Infarmatian Civic Center �rand River � Palice Center Technalagy Geographic I�formation 5ystem s Planning Publie Senrices 1Norks Tran�partation �rater Services Parking Transit 1+Vater& Re saurce Re�gvery Center KEY � � � Elected by the Appainted by the Appointed by the Appainted by the Appainted by the Citizens af�ubuque Ci#y Council Library Baard af Airport Cammissian City Manager Tru stees ��3�� Page 133�of 1594 CITY OF DUBUQUE, IOWA OFFICIALS JUNE 30, 2025 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 Antonio Mouzon Community Impact Director Jennifer M. Larson Chief Financial Officer Jill M. Connors Economic Development Director Jessica George-Rethwisch Emergency Communications Director Jason Leman - Interim Human Rights Director Amy Scheller Fire Chief Mary Rose Corrigan Health Services Manager Sandi Fowler- Interim Housing and Community Development Director Shelly M. Stickfort Chief Human Resources Officer Joe Pregler Chief Information Officer Marie L.Ware Director of Parks and Recreation Nicholas L. Rossman Library Director Randy W. Gehl Public Information Officer Arielle Swift Public Works Director Wally C.Wernimont Planning Services Manager Jeremy Jensen Police Chief Anderson Sainci Director of the Office of Economic Mobility&Neighborhood Support Gina S. Bell Director of Sustainability Ryan Kunckey Transportation Services Director Christopher J. Lester Water Department Manager Deron Muchring Water&Resource Recovery Center Manager Page 1340 of 1�94 � Government Finance 4fficers Association ��1�1C�.�� 11��1i1�11t �� C�1��11C� 111 �111�.11�1�.1 ��111� P'resented t� �ity of Dubuque Iawa For its Annual Comprehensive Financial Report F�r the Fiscal Year Ended June 34, 2�24 �' _ Executi�e DirectorlCEa Page 134�of 1594 �� MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT To the Honorable Mayor and Members of the City Council City of Dubuque, lowa Dubuque, lowa Report on the Audit of the Financial Statements Opinions We have audited the accompanying financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Dubuque, lowa (the "City"),as of and for the year ended June 30, 2025, 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 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, 2025, 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 the Dubuque Initiative and Subsidiaries and the Dubuque Convention and Visitors Bureau, which represents 27.05%, 32.01%, and 35.00%, respectively, of the assets, net position, and revenues of the aggregate discretely presented component units. Those statements were audited by other auditors whose report has been furnished to us, and our opinion, insofar as it relates to the amounts included for the Dubuque Initiative and Subsidiaries and the Dubuque Convention and Visitors Bureau, is based solely on the reports of the other auditors. Basis for Opinions We conducted our audit in accordance with auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States. 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. MAULDIN&JENKINS,LLC•200 GALLERIA PARKWAY S.E.,SUITE 1700•ATLANTA,GEORGIA 30339-5946 770-955-8600•FAX 770-980-4489•www.mjcpa.com MEMBERS OF THE AMERICANINSTITUTE OF CERTIFIED PUBLICACCOUNTANTS Page 1342 of 1594 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 twelve 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 generally accepted auditing standards 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 generally accepted auditing standards and GovernmentAuditing 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. 15 � :''� � Page 1 94 We are required to communicate with those charge 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. Required Supplementary Information Accounting principles generally accepted in the United States of America require that the ManagemenYs Discussion and Analysis ("MD&A") (on pages 18 through 27), the Schedule of Receipts, Expenditures, and Changes in Fund Balances — Budget and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds (on page 108), the Note to Required Supplementary Information — Budgetary Reporting (on page 109), the Schedule of the City's Proportionate Share of Net Pension Liability— lowa Employees' Retirement System (on page 110), the Schedule of the City's Contributions— lowa Employees' Retirement System (on page 111), the Notes to Required Supplementary Information — Net Pension Liability IPERS (on page 112), the Schedule of the City's Proportionate Share of Net Pension Liability — Municipal Fire and Police Retirement System of lowa (on page 113), the Schedule of the City's Contributions — Municipal Fire and Police Retirement System of lowa (on page 114), the Notes to Required Supplementary Information — Net Pension Liability MFPRSI (on page 115) and the Schedule of Changes in Total OPEB Liability, Related Ratios and Notes (on page 116), 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 ("GASB") who considers it to be an essential part of financial reporting for placing the basic financial statements in an appropriate operational, economic, or historical context. We have applied certain limited procedures to the required supplementary information in accordance with auditing standards generally accepted in the United States of America, which consisted of inquiries of management about the methods of preparing the information and comparing the information for consistency with managemenYs 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. 16 � `� � Page 1 94 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 statements and schedules are presented for purposes of additional analysis and are not a required part of the basic financial statements. The Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required by the Title 2 U.S. Code of Federal Regulations (CFR) Part 200, Uniform Administrative Requirements, Cost Princip/es, and Audit Requirements for Federal Awards, and is also 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 auditing standards generally accepted in the United States of America by us and other auditors. In our opinion the combining statements and schedules 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 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. 17 '� :''� � Page 1 94 Other Reporting Required by Government Auditing Standards In accordance with Government Auditing Standards, we have also issued our report dated May 27, 2026 on our consideration of the City's internal control over financial reporting and on our tests of its compliance with certain provisions of laws, regulations,contracts, and grant agreements and other matters.The purpose of that report is solely to describe the scope of our testing of internal control over financial reporting and compliance and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal control over financial reporting compliance. That report is an integral part of an audit performed in accordance with Government Auditing Standards in considering City of Dubuque, lowa's internal control over financial reporting and compliance. �� , ��c Atlanta, Georgia May 27, 2026 18 � � � Page 1 94 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 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, 2025. Comparative information from the previously issued financial statements for the year ended June 30, 2024, is also included. 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 $773,090,541 compared to net position of $724,718,388 for fiscal year 2024. • Governmental program revenues were consistent with fiscal year 2024. Total governmental program revenues were $72,966,127. • The City's business type activities program revenues increased by $10,256,946. Charges for services increased by $4,704,059. Operating grants and contributions decreased by $309,590. Capital grants and contributions increased by $5,862,477 mainly due to contribution of capital assets from outside sources and spend of American Rescue Plan Act funding. Capital contributions received from governmental funds were $3,242,176 and are shown in the transfers line and are detailed out in Note 6. • Expenses of the City's governmental activities increased approximately 5.8%, or $7,141,941 in fiscal year 2025. The increase was seen mainly in public works and general government, which is due to additional development related costs, street maintenance costs, additional salary and wages, and subscription asset related amortization. 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. Page 134�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 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. Page 13�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 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 and internal service 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 are allocated between the governmental activities and business-type activities in the government-wide financial statements. Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside the government. Fiduciary funds are not reflected in the government-wide financial statements because the resources of those funds are not available to support the City's own programs. The accounting used for fiduciary funds is much like that used for proprietary funds. The City has one fiduciary fund, 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. Page 134�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 GOVERNMENT-WIDE FINANCIAL ANALYSIS Net position.As noted earlier, net position may serve as a useful indicator of a government's financial position when observed over time. The analysis that follows focuses on the change in net position for the governmental and business-type activities. The largest part of the City's net position reflects its net investment in capital assets such as land, buildings, infrastructure, machinery, and equipment less any related debt used to acquire those assets that is still outstanding. The debt related to the investment in capital assets is liquidated with resources other than capital assets, 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. CITY OF DUBUQUE'S NET POSITION Governmental Activities Business-type Activities Total 2025 2024 2025 2024 2025 2024 Current and other assets $206,173,090 $187,639,906 $ 61,699,019 $ 62,920,712 $ 267,872,109 $250,560,618 Capital,lease,and subscription assets 460,564,646 443,728,312 398,308,495 384,840,933 858,873,141 828,569,245 Total assets 666,737,736 631,368,218 460,007,514 447,761,645 1,126,745,250 1,079,129,863 Deferred outflows of resources 14,743,575 15,151,267 1,609,805 2,037,423 16,353,380 17,188,690 Long-term liabilities 130,260,293 112,046,391 136,277,727 145,283,815 266,538,020 257,330,206 Other liabilities 23,168,053 35,265,628 18,484,476 16,319,483 41,652,529 51,585,111 Totalliabilities 153,428,346 147,312,019 154,762,203 161,603,298 308,190,549 308,915,317 Deferred inflows of resources 60,290,358 60,996,155 1,527,182 1,688,693 61,817,540 62,684,848 Net position: Net investment in capital assets 415,810,303 405,878,371 260,466,624 240,084,787 676,276,927 645,963,158 Restricted 49,828,073 37,049,245 3,178,805 3,190,479 53,006,878 40,239,724 Unrestricted 2,124,231 (4,716,305) 41,682,505 43,231,811 43,806,736 38,515,506 Total net position $ 467,762,607 $ 438,211,311 $305,327,934 $ 286,507,077 $ 773,090,541 $ 724,718,388 Net position of the governmental activities increased $29,551,296 over fiscal year 2024 balance of $438,211,311. There was a $16,836,334 increase in capital assets. The increase is due to construction of building and infrastructure and purchases of equipment. Unearned revenue decreased by $10,475,703 related to American Rescue Plan Act funds spent. The net pension liability increased by $36,834,476 which was offset by pension related deferred inflows that decreased by$828,746. Page 13�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 Net position for the business-type activities increased $19,262,912 over fiscal year 2024 of $286,065,022. A large driver is the reduction in debt related liabilities (loans payable, notes payable, and revenue bonds payable) in the amount of$15,225,346. The largest portion of the City's net position, 676,276,927 or 87.5% 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 53,006,878 or 6.9% represents resources that are subject to external restrictions on how they may be used. The remaining balance of unrestricted net position of 43,806,736, or 5.7% 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$47,278,366 or 29.0% in 2025. Additional notable revenues include charges for services in the amount of$19,731,332 or 12.1%, local option sales taxes in the amount of$12,588,620 or 7.7%, and gaming in the amount of$9,859,591 or 6.0%. Charges for services and local option sales taxes remained consistent with the prior year. In calendar year 2025, the DRA saw a decline of 9.70% in gross gaming revenues, while Diamond Jo experienced a slight increase of 3.60% compared to 2024. The Dubuque market in 2025 was approximately $123.6 million annually, showing an increase of 0.8% from the $122.6 million market in 2024. This decline was expected due to construction disruptions throughout the year. The DRA's gross gaming revenue was significantly impacted by redevelopment work on the property both internally and externally, which continued throughout the year. Additionally, the main highway leading to our facility was closed for extended repairs. An exit ramp that was initially scheduled for a brief closure ended up being closed for several months, further affecting traffic and access. A new casino began operations in Rockford, Illinois in August of 2024 that could serve as a substitute for some customers. Governmental operating expenses during 2025 totaled $130,944,874, an increase of $21,824,147 from 2024. Public Safety increased $4,739,747 due to additional positions being filled at the police and fire departments, ratification of a new collective bargaining agreement for police and fire, and increased payroll costs due to cost of living adjustments and implementation of a cost and class study. Public works decreased $6,233,089 due to position vacancies, reduced equipment replacements, and costs being captured in capital assets. General government decreased $15,211 due to subscription based asset costs and additional payroll costs. Business-type activities. Charges for services increased $4,704,059 as noted earlier. Operating expenses were $50,172,898, an increase of$1,661,626 from 2024. Most notable increase is with water utility. Page 13�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 CITY OF DUBUQUE CONDENSED STATEMENT OF REVENUES, EXPENSES,AND CHANGES IN NET POSITION Governmental Activities Business-type Activities Total 2025 2024 2025 2024 2025 2024 Revenues: Program revenues Charges for services $ 19,731,332 $ 19,276,865 $ 45,915,593 $ 41,211,534 $ 65,646,925 $ 60,488,399 Operating grants and contributions 27,363,673 22,093,055 2,241,789 2,551,379 29,605,462 24,644,434 Capital grants and contributions 25,871,122 13,669,481 17,251,054 11,388,577 43,122,176 25,058,058 Generalrevenues Property taxes 47,278,366 40,926,636 - - 47,278,366 40,926,636 Local option sales tax 12,588,620 12,440,662 - - 12,588,620 12,440,662 Hotel/motel tax 3,273,746 2,814,271 - - 3,273,746 2,814,271 Utility franchise fees 5,369,898 5,617,704 - - 5,369,898 5,617,704 Gaming 9,859,591 8,721,633 - - 9,859,591 8,721,633 Unrestricted investment earnings 8,293,425 2,420,275 2,375,715 1,081,314 10,669,140 3,501,589 Miscellaneous 3,243,585 1,770,389 1,267,387 756,376 4,510,972 2,526,765 Gain on sale of capital assets 188,813 1,010,802 - 10,736 188,813 1,021,538 Total revenues 163,062,171 130,761,773 69,051,538 56,999,916 232,113,709 187,761,689 Expenses: Public safety 42,246,798 37,507,051 - - 42,246,798 37,507,051 Public works 29,132,841 35,365,930 - - 29,132,841 35,365,930 Health and social services 1,194,584 2,584,445 - - 1,194,584 2,584,445 Culture and recreation 18,098,149 14,920,985 - - 18,098,149 14,920,985 Community and economic development 24,384,708 17,578,377 - - 24,384,708 17,578,377 General government 13,129,591 13,144,802 - - 13,129,591 13,144,802 Interest on long-term debt 2,758,203 2,701,343 - - 2,758,203 2,701,343 Sewage disposal works 16,309,220 13,921,342 16,309,220 13,921,342 Water utility 10,377,709 11,461,023 10,377,709 11,461,023 Stormwater utility 8,821,297 7,014,499 8,821,297 7,014,499 Parking facilities 3,321,009 4,042,315 3,321,009 4,042,315 Refuse collection 6,122,676 6,434,520 6,122,676 6,434,520 Transit system 5,064,099 5,437,858 5,064,099 5,437,858 Salt - - 156,888 199,715 156,888 199,715 Total expenses 130,944,874 123,802,933 50,172,898 48,511,272 181,117,772 172,314,205 Increase in net position before transfers 32,117,297 6,958,840 18,878,640 8,488,644 50,995,937 15,447,484 Transfers (384,272) (5,409,229) 384,272 5,409,229 - - Increase in net position 31,733,025 1,549,611 19,262,912 13,897,873 50,995,937 15,447,484 Net position,beginning,as restated 436,029,582 436,661,700 286,065,022 272,609,204 722,094,604 709,270,904 Net position,ending $ 467,762,607 $ 438,211,3ll $305,327,934 $ 286,507,077 $ 773,090,541 $ 724,718,388 Page 13�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 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$118,792,254 at June 30, 2025. $4,102,526 is in nonspendable for endowment corpus, inventory, long-term receivables, and prepaid items.. $69,772,431 is restricted. Council ordinance has committed $4,113,786 for capital improvements. $2,623,173 is assigned for capital improvements and cable equipment replacement. This leaves $38,180,338 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 $46,383 to $45,934,646. Taxes increased by $2,476,655, charges for services increased by $680,836, investment earnings increased by $4,443,892, and contributions increased by $344,697. These increases were offset by an increase in intergovernmental revenues of $7,396,165 in fiscal year 2025. General fund expenditures increased to $94,376,984 in 2025. The $10,154,434 increase was primarily due to purchases of capital assets and increase in general government expenditures. The fund balance of special revenue fund Tax Increment Financing increased by $10,936,359 to $28,003,141. Increase was primarily due to timing of spend tied to TIF funded capital projects. Transfers will be recorded as budgeted projects incur expenditures. The fund balance of the special revenue Community Development Fund decreased by $372,134 to $5,300,046. Total revenues decreased by $246,843 to $3,660,193 in 2025 primarily due to the decrease in intergovernmental revenue. The fund balance of the Debt Service Fund increased by $135,697 to a balance of$1,924. The Debt Service Fund paid $4,897,581 in principle and $2,685,206 in interest and fiscal charges during fiscal year 2025. 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, 2025, totaled $304,771,856 of which the unrestricted is $41,126,427. The Sewer Fund had an increase of $6,600,608 for total net position of $50,092,004. Operating expenses increased by $2,504,502 primarily due to supplies and services. The Sewer Fund's operating income was $2,797,028. The Water Utility had an increase in net position by $6,099,645 for total net position of $52,323,836. Operating expenses decreased by $967,850 primarily due to supplies and services. The Water Utility Fund's operating income was $3,860,521. The Storm Water Utility had an increase in net position of $8,649,481. Ending net position is $133,624,942. The Storm Water Utility's operating income was $477,726. Page 13�3'of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 The Parking Facilities had a decrease in net position of $1,518,293. Ending net position is $47,851,870. Parking Facilities had operating loss of$487,011. Nonmajor Enterprise Funds net position decreased by $898,306 to $20,879,204. This was primarily due to Refuse's decrease of$582,498 in net position BUDGETARY HIGHLIGHTS There was one amendment to the City's 2024-2025 cash basis budget. The amendment was passed in May 2025 to reflect operating and capital budget carryovers (continuing appropriation authority) from fiscal year 2024, amended the fiscal year 2025 budget for operating and capital City Council actions since the beginning of the fiscal year, and amendments to add additional appropriation authority due to increased revenues and grant agreements. The final budget for total cash basis receipts increased by $47,960,699. 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 $170,160,995 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 $42,618,008 less than the final amended budget; and, cash basis expenditures were $202,663,167 less than the final amended budget due primarily to projected capital projects not completed by fiscal year end. Page 13�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 CAPITAL, LEASE AND SUBSCRIPTION 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, 2025, amounts to $858,873,141 (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) Governmental Activities Business-type Activities Total 2025 2024 2025 2024 2025 2024 Land $ 108,713,096 $ 108,713,096 $ 26,043,617 $ 25,349,764 $ 134,756,713 $ 134,062,860 Buildings 153,217,713 148,471,733 158,099,767 158,052,767 311,317,480 306,524,500 Improvements other than buildings 32,379,188 31,762,782 238,453,403 231,886,259 270,832,591 263,649,041 Machinery and equipment 64,794,927 58,807,495 133,210,874 129,071,254 198,005,801 187,878,749 Infrastructure 293,327,413 276,524,915 - - 293,327,413 276,524,915 Lease equipment 153,207 209,101 267,361 267,361 420,568 476,462 Lease real estate 509,988 208,093 - - 509,988 208,093 Subscription assets 4,555,384 4,531,501 - 21,549 4,555,384 4,553,050 Construction in progress 24,219,681 25,824,791 23,863,053 12,865,516 48,082,734 38,690,307 Accumulated depreciation/ amortization (221,305,951) (211,325,195) (181,629,580) (172,673,537) (402,935,531) (383,998,732) Total assets $ 460,564,646 $ 443,728,312 $ 398,308,495 $ 384,840,933 $ 858,873,141 $ 828,569,245 Major expenditures during fiscal year 2025 were for the construction work on Schmitt Island amphitheater, the Old Mill Road lift station, and Taxiway Rehab. Long-term debt. At year end, the City had $218,415,979 of debt outstanding. Long-term debt includes general obligation bonds, tax increment financing bonds, revenue bonds, loans, leases, and subscriptions. Revenue capital loan notes have been issued for the planning and construction of sewer, stormwater, and water capital projects through the State of Iowa State Revolving Loan Funds (SRF). The City issued an additional $4,301,411 of SRF debt in 2025. 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 $321,926,120. With $94,817,266 of debt applicable against the capacity, the City is utilizing 29.5% of this limit. Additional information on the City's long-term debt can be found in Note 7 of this report. Page 13�5�of 1594 CITY OF DUBUQUE, IOWA MANAGEMENT'S DISCUSSION AND ANALYSIS FOR THE YEAR ENDED JUNE 30, 2025 ECONOMIC FACTORS The City's unemployment rate as of June 2025 was 3.7%. The national average was 4.1% for June 2025, according to the Bureau of Labor Statistics. State of Iowa was 2.8% as reported in June 2025. The assessed valuation of taxable property, net of exemptions, increased by 11.6% to $3,410,395,000. In fiscal year 2025, there was an increase to the minimum monthly refuse rate of 17.25, a 9.0% increase to sewer rate, a 12.0% increase to water rates, and a 5.0% increase to the storm water monthly fee ($10.50 per single family unit(SFU)). Rate increases included 12.0% for water, 9.0% for sewer, 5.0% for stormwater, and 9.0% for refuse in fiscal year 2025. 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. Page 13�of 1594 Basic Financial Statements Fiscal Year Ended June 30, 2025 City of Dubuque, Iowa Page 1357 of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1358 of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF NET POSITION JUNE 30,2025 Primary Government Component Units Dubuque Dubuque Convention Metropolitan Dubuque and Governmental Business-type Area Solid Initiatives and Visitors Activities Activities Total Waste Agency Subsidiaries Bureau ASSETS CURRENT ASSETS Cash and investments $ 98,308,065 $ 46,933,782 $ 145,241,847 $ 13,813,408 $ 5,435,713 $ 1,576,394 Receivables Property tax Delinquent 301,128 - 301,128 - - - Succeedingyear 29,855,792 - 29,855,792 - - - Accounts 4,571,757 5,439,549 10,011,306 765,870 20,327 95,864 Leases 1,496,589 95,757 1,592,346 - 145,290 - Special assessments 565,029 99,716 664,745 - - - Accrued interest 1,215,613 466,586 1,682,199 259,132 - - Notes 576,152 - 576,152 - 292,273 - Intergovernmental 10,017,388 1,662,885 11,680,273 - 85,000 - Internal Balances (368,741) 368,741 - - - - Inventories 1,586,375 1,824,369 3,41Q744 - 127,779 9,496 Prepaid items 684,938 208,887 893,825 12,409 - 2,500 Total Current Assets 148,810,085 57,100,272 205,910,357 14,850,819 6,106,382 1,684,254 NONCURRENT ASSETS Restricted cash andinvestments 25,010,647 3,877,338 28,887,985 6,295,359 320,607 318,160 Assets held for commercial development - - - - 114,000 - Notes receivable 6,108,110 - 6,108,110 - 4,231,676 - Lease receivable 26,244,248 721,409 26,965,657 - 1,038,103 - Capital,lease and subscription assets Land 108,713,096 26,043,617 134,756,713 2,737,804 - - Buildings 153,217,713 158,099,767 311,317,480 566,523 948,180 265,111 Improvements to other than buildings 32,379,188 238,453,403 270,832,591 22,145,897 - 27,491 Machinery and equipment 64,794,927 133,210,874 198,005,801 5,371,777 - 185,965 Infrastructure 293,327,413 - 293,327,413 - - - Lease equipment 153,207 267,361 420,568 - - 87,193 Lease real estate 509,988 - 509,988 - - - Subscription asset 4,555,384 - 4,555,384 - - - Construction in Progress 24,219,681 23,863,053 48,082,734 1,297,305 - - Accumulated Depreciation (221,305,951) (181,629,580) (402,935,531) (12,987,619) (189,636) (205,448) Total NoncurrentAssets 517,927,651 402,907,242 920,834,893 25,427,046 6,462,930 678,472 Total Assets 666,737,736 460,007,514 1,126,745,250 40,277,865 12,569,312 2,362,726 DEFERRED OUTFLOWS OF RESOURCES Pension related deferred outflows 14,322,389 1,380,629 15,703,018 194,835 - - OPEB related deferred outflow 421,186 229,176 650,362 39,171 - - Total Deferred Outflows of Resources $ 14,743,575 $ 1,609,805 $ 16,353,380 $ 234,006 $ - $ - Page 135�of 1594 CITY OF DUBUQUE,IOWA EXHIBIT 1(continued) STATEMENT OF NET POSITION(Continued) JUNE 30,2025 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 $ 10,103,341 $ 4,105,400 S 14,208,741 $ 7,316,935 $ 159,174 $ 906,485 Accrued payroLL 1,588,078 273,397 1,861,475 28,095 - 120,058 Leases Payable ll6,464 23,210 139,674 - - 41,978 Subscription payable 190,563 - 190,563 - - - Loans payable 283,154 - 283,154 - - 9,315 Capitalloan notes payable - 6,842,660 6,842,660 - - - General obLigatio�bonds payable 4,146,061 2,908,939 7,055,000 490,000 - - Revenue bonds payable - 3,740,000 3,740,000 - - - Tax increment financing bonds payable 845,000 - 845,000 - - - Line of credit - - - - - - Accrued compensated absences-current 735,101 97,894 832,995 8,955 - 15,553 Accrued interest payable 306,094 306,069 612,163 14,413 - - Intergovernmentalpayable 333,037 125,883 458,920 148,725 - 9,622 Unearned revenue 4,224,073 - 4,224,073 - - �00,000 OPEB liability 297,087 61,024 358,1ll 7,254 - - Total Current LiabiLities 23,768,053 18,484,476 41,652,529 2,014,377 159,174 1,603,011 NONCURRENT LIABILITIES Leases Payable 357,684 157,375 515,059 - - 46,402 Subscription payable 232,989 - 232,989 - - - Loans payable 2,381,018 - 2,381,018 - - 28,973 Capitalloan notes payable - 93,814,695 93,814,695 - - - General obLigatio�bonds payable 61,071,852 19,273,394 80,345,246 5,320,387 - - Revenue bonds payable - 17,994,839 17,994,839 - - - La�dfill closure and post-closure care - - - 4,727,938 - - Tax increment fina�cing bonds payable 14,647,122 - 14,647,122 - - - Accrued compensated absences 8,958,659 1,793,027 10,751,686 109,138 - - Net pe�sion liability 39,427,544 3,190,525 42,618,069 356,025 - - Total OPEB liabiLity 3,183,425 653,872 3,837,297 77,731 - - Total Noncurrent Liabilities 130,260,293 136,277,727 266,538,020 10,591,219 - 75,375 Total Liabilities 153,428,346 154,762,203 308,190,549 12,605,596 159,174 1,678,386 DEFERRED INFLOWS OF RESOURCES Pension related deferred inflows 1,443,888 137,091 1,58Q979 28,407 - - OPEB related deferred inflows 1,834,571 519,329 2,353,900 66,090 - - Leases related deferred inflows 26,892,631 783,630 27,676,261 - - - Succeeding year property tax 29,855,792 - 29,855,792 - - - Deferred amount on refunding 263,476 87,732 350,608 - - - Total deferred inflows of resources 6Q290,358 1,527,182 61,817,540 94,497 - - NET POSITION Net investme�t in capital assets 415,810,303 260,466,624 676,276,927 12,282,214 758,544 360,312 Restricted for�by: Restricted by bond ordinance�development agreement 4,334,273 3,178,805 7,513,078 - - - Restricted employee benefits 13,184 - ]3,184 - - - Community development 6,418,656 - 6,418,656 - - - ]owa Finance Authority Trust 1,830,307 - 1,830,307 - - - Capital projects 35,563,892 - 35,563,892 - - - Franchise agreement 78,892 - 78,892 - - - Endowments 170,349 - ]70,349 - - - Other 1,418,520 - 1,418,520 - 178,951 - Restricted by state statute - - - 417,526 - - Restricted for landfill closure and post-closure - - - ],149,895 - - Restricted for minority interest - - - 3,153,299 - - Unrestricted 2,124,231 41,682,505 43,806,736 1Q808,844 11,472,643 324,028 Total Net Position $ 467,762,607 $ 305,327,934 $ 773,090,547 $ 27,811,778 $ 12,410,138 $ 684,340 See notes to fina�cial statements. Page 136�of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF ACTIVITIES FOR THE YEAR ENDING JUNE 30,2025 Program Revenues Operating Capita] Grants Grants Total Chargesfor and and Program Functions/Programs Expenses Services Contributio�s Contribution Revenues Primary government Governmental Activities: Public safety $ 42,246,798 $ 5,333,958 $ 1,950,252 $ 4,090,177 $ 11,374,387 Public works 29,132,841 4,738,211 10,964,501 18,183,204 33,885,916 Health and socia]services 1,194,584 165,226 30,657 - 195,883 Culture and recreation 18,098,149 2,065,389 475,442 1,877,904 4,418,735 Community and eco�omic development 24,384,708 1,452,413 13,667,865 7,570,899 16,691,177 General government 13,129,591 5,976,135 274,956 148,938 6,400,029 ]nterest on long-term debt 2,758,203 - - - - Total governmenta]activities 130,944,874 19,731,332 27,363,673 25,871,122 72,966,127 Business-type activities Sewage disposal works 16,309,220 17,734,103 35,010 4,738,457 22,507,570 Water utility 10,377,709 13,184,681 89,163 1,845,363 15,119,207 Stormwater utility 8,821,297 6,413,501 3,695 9,683,471 16,1OQ667 Parkingfacilities 3,327,009 2,628,149 80,589 983,763 3,692,501 Refuse collection 6,122,676 5,375,425 - - 5,375,425 Transit system 5,064,099 476,406 2,033,332 - 2,509,738 Salt 156,888 103,328 - - 103,328 Total business-type activities 50,172,898 45,915,593 2,241,789 17,251,054 65,408,436 Total primary government $ 7g7,ll7,772 $ 65.646.925 S 29.605,462 S 43.722,176 $738,374.563 Component units Dubuque Metropolitan Area Solid Waste Agency S 6,648,498 $ 8,560,540 $ 8,268 $ - $ 8,568,808 Dubuque[nitiatives and Subsidiaries 1,737,376 - 960,000 - 960,000 Dubuque Convention and Visitors Bureau 2,841,308 549,688 2,274,298 - 2,823,986 Total Component Units S 11.227182 S 9110.228 S 3.242.566 S - S 12.352.794 Generalrevenues Propertytaxes LocaL option sales tax HoteL mote]tax Utility franchise fees Gaming Unrestricted investment earnings Miscellaneous Gain(loss)on disposal of capital assets Transfers Total general revenues and transfers Cha�ge in Net Position NET POSITION,BEGINNING,as previously presented Restatements Net position,begin�ing,as restated Net position,ending of year See notes to fina�cial statements. Page 136�t3of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF ACTIVITIES(continued) FOR THE YEAR ENDED JUNE 30,2025 Net(Expense)Revenue and Changes in Net Position Primary Government Component Units Dubuque Business- Metropolitan Area Dubuque Dubuque Governmental type Solid waste Initiatives and Convendon and Acrivities Acrivities Total Agency Subsidiaries Visitors Bureau �ao,a�a,aii� - (ao,s�z,ali� 4,753,075 - 4,753,075 �ssa,�oi� - (9ss,�m� (13,679,414) - (13,679,414) (7,693,531) - (7,693,531) �s,�zs,ssz� - �s,�z9,ssz� �z,�ss,zos� - (z,�sa,zos� �5�,s�s,�4�� - (s�,s�s,�4�� - 6,198,350 6,198,350 - 4,741,498 4,741,498 - 7,279,370 7,279,370 - 371,492 371,492 - (747,251) (747,257) - (2,554,361) (2,554,361) - (53,560) (53,560) - 15,235,538 15,235,538 $ (57.978.7471 S 15235.538 S (42.743209) $ 1,920,310 $ - $ - - (777,376) - - - (17,322) 1,920,310 (777,376) (17,322) $ 47,278,366 $ - $ 47,278,366 $ - 12,588,620 - 12,588,620 - 3,273,746 - 3,273,746 - 5,369,898 - 5,369,898 - 9,859,591 - 9,859,591 - 8,293,425 2,375,715 1q669,740 819,135 461,238 25,019 3,243,585 1,267,387 4,510,972 - 77,884 ]88,813 - 188,813 43,833 262,124 (384,272) 384,272 - - 89,711,772 4,027,374 93,739,146 862,968 801,246 25,019 31,733,025 19,262,912 SQ995,937 2,783,278 23,870 7,697 438,211,311 286,507,077 724,718,388 24,957,594 12,386,268 676,643 $ (2,187,729) $ (442,055) $ (2,623,784) $ 7Q956 436,029,582 286,065,022 722,094,604 25,028,500 467,762,607 305,327,934 773,090,547 27,817,778 72,470,738 684,340 Page 136�of 1594 CITY OF DUBUQUE,IOWA BALANCE SHEET GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2025 Special Revenue Tax Incremental Community General Financing Development ASSETS Cash a�d investments $ 41,160,879 $ 23,341,748 $ 1,825,828 Receivables Propertytax Delinquent 224,583 57,040 - Succeeding year 26,542,375 - - Accounts and other 4,083,639 - - Special assessments 8,635 - - Accruedinterest 695,871 329,542 - Notes 2,328,426 - 3,144,953 ]ntergovernmental 2,096,526 - 1,097,2ll Leases 27,740,837 - - Due from other funds 5,228,593 - - Inventories 203,895 - 177,770 Prepaid items 508,244 - 5,687 Restricted cash and investments 97,733 4,308,065 - Total Assets 110,920,176 28,036,395 6,251,449 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 3,996,894 33,254 275,309 Accrued payroll 1,416,101 - 23,718 Intergovernmentalpayable 332,106 - - Due to other funds - - - Unearned revenue 4,224,073 - - Total Liabilities 9,969,174 33,254 299,027 DEFERREDINFLOW OFRESOURCES Unavailable revenues Succeeding year property tax 26,542,315 - - Lease re1ated deferred inflows 26,892,631 - - Special assessments 8,635 - - Grants 1,069,165 - 652,376 Other 503,610 - - Total Deferred Inflows of Resources 55,016,356 - 652,376 FUND BALANCES Nonspendable Imentory 203,895 - 177,770 Long-term notesreceivable 2,094,258 - - Prepaid items 508,244 - 5,687 Restricted Endowments - - - Library - - - Police - - - Veterans - - - Bond ordinance - 4,334,273 - Capital improvements - 23,668,868 - Franchise agreement - - - Specia]assessments - - - ]owa Finance Authority Trust - - - Community programs - - 5,101,105 Employee benefits - - - Committed,capital improveme�ts - - - Assigned Dubuque Racing gaming/distribution 1,381,800 - - Cable equipment replacement 1,247,373 - - Unassigned 4Q505,076 - 15,484 Total Fund Balances 45,934,646 28,003,141 5,300,046 Total Liabilities,Deferred Inflows of Resources,and Fund Balances $ 110.920,176 $ 28,036.395 S 6,251,449 See notes to fina�cial statements. Page 136�3'of 1594 EXHIBIT 3 Nonmajor Govemmental Debt Service Funds Total $ 5 $ 23,967,733 $ 90,290,193 2,247 ]7,259 301,729 285,870 3,027,607 29,855,792 - 272,773 4,356,412 - 556,394 565,029 - 105,360 1,130,773 - ],21Q883 6,684,262 - 6,823,651 10,017,388 - - 27,740,837 - - 5,228,593 - 966,691 1,348,356 - 145,981 659,912 - 20,604,849 25,070,647 288,122 57,693,181 203,189,323 - 3,887,525 8,192,982 - 112,867 1,552,686 - 931 333,037 - 5,036,256 5,036,256 - - 4,224,073 - 9,037,579 19,339,034 285,870 3,027,607 29,855,792 - - 26,892,631 - 545,355 553,990 - 5,527,627 7,249,168 328 2,516 506,454 286,198 Q103,105 65,058,035 - 966,691 1,348,356 - - 2,094,258 - 145,981 659,912 - 170,349 170,349 - 1,172,197 1,172,197 - 3,291 3,291 - 232,018 232,018 - - 4,334,273 - 31,839,382 55,508,250 - 78,892 78,892 - ]1,074 11,014 - 1,830,307 1,830,307 - 1,317,551 6,418,656 - 13,184 13,184 - 4,113,786 4,113,786 - - 7,381,800 - - 1,241,373 1,924 (2,342,146) 38,180,338 1,924 39,552,497 118,792,254 S 288122 S 57.693181 S 203.189.323 Page 136��of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1365 of 1594 CITY OF DUBUQUE,IOWA EXHIBIT 3-1 RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET TO THE STATEMENT OF NET POSITION JUNE 30,2025 Total fund balances-governmental funds $ 118,792,254 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 681,683,692 Accumulated depreciation (221,149,944) 460,533,748 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 553,990 Grants and other 7,755,622 8,309,612 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 (2,868,455) Deferred outflows of resources 14,622,398 11,753,943 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 6,114,965 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 (556,078) 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 (65,217,913) Tax increment financing bonds (15,492,122) Loans payable (2,664,172) Lease payable (474,148) Subscription payable (423,552) Deferred gain on debt refundings (263,476) Accrued interest (306,094) Compensated absences (9,693,760) Net pension liability (39,170,088) Total OPEB liability (3,480,512) (137,185,837) Net position of governmental activities $ 467,762,607 See notes to financial statements. Page 136�of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2025 Special Revenue Tax Community Incremental Development General Financing REVENUES Taxes $ 41,749,799 $ 17,703,106 $ - Special assessments - - 3,500 Licenses and permits 2,671,669 - - Intergovernmental 15,874,746 - 3,443,684 Charges for services 16,556,457 - - Fines and forfeits 262,474 - - Investment earnings 5,936,120 987,131 122,100 Contributions 1,006,834 573,327 54,071 Gaming 9,859,591 - - Miscellaneous 2,517,914 - 36,838 Total Revenues 96,435,604 19,263,564 3,660,193 EXPENDITURES Current Public safety 39,516,326 - - Public works 9,380,432 - 764 Health and social services 1,198,214 - - Culture and recreation 15,542,792 - 102,387 Community and economic development 6,057,139 3,756,110 2,342,116 General government 11,437,430 - 421 Debt service Principal 836,521 - Interest and fiscal charges 71,751 - - Capital projects 10,336,379 - 2,074,510 Total Expenditures 94,376,984 3,756,110 4,520,198 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER) EXPENDITURES 2,058,620 15,507,454 (860,005) OTHER FINANCING SOURCES(USES) Issuance of debt 301,895 - - Premium on bonds - - - Transfers in 2,718,407 - 487,871 Transfers out (5,203,602) (4,571,094) - Insurance recovery 18 - - Sales of capital assets 171,045 - - Total Other Financing Sources(Uses) (2,012,237) (4,571,094) 487,871 NET CHANGE IN FUND BALANCES 46,383 10,936,360 (372,134) FUND BALANCES,BEGINNING 45,888,263 17,066,781 5,672,180 FUND BALANCES,ENDING S 45,934,646 S 28,003,141 S 5,300,046 See notes to financial statements. Page 136�i of 1594 EXHIBIT 4 Nonmajor Governmental Debt Service Funds Total $ 299,323 $ 8,755,478 $ 68,507,706 - 39,769 43,269 - - 2,671,669 - 24,910,945 44,229,375 - 117,706 16,674,163 - - 262,474 74,535 957,518 8,077,404 - 748,938 2,383,170 - - 9,859,591 - 905,087 3,459,839 373,858 36,435,441 156,168,660 - 6,044 39,522,370 - 7,992,470 17,373,666 - - 1,198,214 - 71,501 15,716,680 - 8,819,129 20,974,494 - 1,087,218 12,525,069 4,897,581 34,387 5,768,489 2,685,206 72,997 2,829,954 - 24,892,866 37,303,755 7,582,787 42,976,612 153,212,691 (7,208,929) (6,541,171) 2,955,969 - 22,695,772 22,997,667 - 334,435 334,435 12,986,051 4,929,483 21,121,812 (5,620,671) (7,004,116) (22,399,483) - - 18 - 30,477 201,522 7,365,380 20,986,051 22,255,971 156,451 14,444,880 25,211,940 (154,527) 25,107,617 93,580,314 $ 1,924 $ 39,552,497 $ 118,792,254 Page 13�of 1594 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 30,2025 Net change in fund balances-total governmental funds $ 25,211,940 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 30,466,396 Transfers of capital assets to enterprise funds (3,242,176) Contributions from developers 1,895,952 Depreciation and amortization expense (12,266,293) 16,853,879 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. (12,709) 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 (43,075) Grants and other 4,562,966 4,519,891 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 (23,332,100) Debt repayments 5,768,489 (17,563,611) 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 (70,980) Amortization of bond discount/premium 137,413 Decrease in compensated absences 386,799 Deferred amount on debt refundings (37,640) Pension adjustment 1,062,902 OPEB adjustment 213,309 Total additional expenses 1,691,803 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. 1,031,832 Change in net position of governmental activities S 31,733,025 See notes to financial statements. Page 136�of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1370 of 1594 EXHIBIT 5 Business-type Activities-Enterprise Funds Sewage Disposal Stormwater Works Water Utility Utility ASSETS CURRENT ASSETS Cash and investments $ 2,592,969 $ 13,337,338 $ 23,961,472 Receivables Accounts 2,042,743 1,851,762 644,143 Accrued interest 67,786 95,515 202,652 Intergovernmental 489,217 - 899,883 Leases - 95,757 - Special assessments 20,280 26,562 12,962 Due from other funds - - - Prepaid items 58,208 32,559 14,128 Inventories 223,002 1,601,367 - Total Current Assets 5,494,205 17,040,860 25,735,240 NONCURRENT ASSETS Restricted cash and investments 278,355 917,486 2,080,000 Lease receivable - 721,409 - Capital and lease assets Land 299,858 209,244 22,289,957 Buildings 72,304,722 11,165,162 - Improvements to other than buildings 63,074,238 1,702,821 167,405,369 Machinery and equipment 39,747,404 76,314,099 1,987,480 Lease equipment 267,361 - - Construction in Progress 15,521,879 2,979,704 3,942,319 Accumulated Depreciation (82,286,224) (35,129,408) (30,477,317) Net Capital and Lease Assets 108,929,238 57,241,622 165,147,808 Total Noncurrent Assets 109,207,593 58,880,517 167,227,808 Total Assets 114,701,798 75,921,377 192,963,048 DEFERRED OUTFLOWS OF RESOURCES Pension related deferred outflows 317,139 311,228 88,378 OPEB related deferred outflow 50,110 64,925 6,861 Total Deferred Outflows of Resources $ 367,249 $ 376,153 $ 95,239 See notes to financial statements. Page 13�of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2025 Business-type Activities-Enterprise Funds Nonmajor Governmental Parking Enterprise Total Activities - Facilities Funds Internal Service Funds $ 222,809 $ 6,819,194 $ 46,933,782 $ 8,017,872 310,401 590,500 5,439,549 215,345 11,148 89,485 466,586 84,840 - 273,785 1,662,885 - - - 95,757 - - 39,912 99,716 - 28,560 75,432 208,887 25,026 - - 1,824,369 238,019 572,918 7,888,308 56,731,531 8,581,102 181,319 420,178 3,877,338 - - - 721,409 - 3,208,558 36,000 26,043,617 - 62,750,935 11,878,948 158,099,767 - 4,788,571 1,482,404 238,453,403 - 2,308,059 12,853,832 133,210,874 171,014 - - 267,361 - 1,419,151 - 23,863,053 15,891 (24,256,626) (9,480,005) (181,629,580) (156,008) 50,218,648 16,771,179 398,308,495 30,897 50,399,967 17,191,357 402,907,242 30,897 50,972,885 25,079,665 459,638,773 8,611,999 92,291 571,593 1,380,629 121,177 25,773 81,507 229,176 - $ 118,064 $ 653,100 $ 1,609,805 $ 121,177 Page 13%�of 1594 EXHIBIT 5 Business-type Activities-Enterprise Funds Sewage Disposal Stormwater Works Water Utility Utility LIABILITIES CURRENT LIABILITIES Accounts payable $ 2,146,201 $ 824,169 $ 1,015,751 Leases Payable 23,210 - - Accrued payroll 64,523 63,912 15,213 Due to other funds - - - General obligation bonds payable 717,675 830,094 693,657 Revenue bonds payable - 390,000 3,350,000 Capital loan notes payable 3,522,096 890,564 2,430,000 Accrued compensated absences-current 29,798 26,201 5,925 OPEB liability 12,702 16,344 2,286 Accrued interest payable 110,525 35,859 128,533 Intergovernmental payable 59,007 47,448 18,183 Total Current Liabilities 6,685,737 3,124,591 7,659,548 NONCURRENT LIABILITIES Leases Payable 157,375 - - Loans payable - - - General obligation bonds payable 5,611,724 6,626,017 2,751,135 Revenue bonds payable - 1,727,588 16,267,251 Capital loan notes payable 51,156,158 10,248,536 32,410,001 Accrued compensated absences 363,146 319,311 72,209 Net pension liability 727,894 774,434 162,541 Total OPEB liability 136,105 175,128 24,490 Total Noncurrent Liabilities 58,152,402 19,871,014 51,687,627 Total Liabilities 64,838,139 22,995,605 59,347,175 DEFERRED INFLOWS OF RESOURCES Pension related deferred inflows 14,764 14,372 22,442 OPEB related deferred inflows 110,691 114,238 55,894 Leases related deferred inflows - 783,630 - Deferred amount on refunding 13,449 65,849 7,834 Total Deferred Inflows of Resources 138,904 978,089 86,170 NET POSITION Net investment in capital assets 53,940,654 36,703,343 107,426,109 Restricted by bond ordinance/development agreement - 917,486 2,080,000 Unrestricted (3,848,650) 14,703,007 24,118,833 Total Net Position $ 50,092,004 $ 52,323,836 $ 133,624,942 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. Page 13%�3'of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF NET POSITION PROPRIETARY FUNDS JUNE 30,2025 Business-type Activities-Enterprise Funds Governmental Nonmajor Activities- Parking Enterprise Internal Service Facilities Funds Total Funds $ 43,603 $ 75,676 $ 4,105,400 $ 1,910,359 - - 23,210 - 15,475 114,274 273,397 35,392 - 187,337 187,337 5,000 615,054 52,459 2,908,939 - - - 3,740,000 - - - 6,842,660 - 3,995 31,975 97,894 - 3,938 25,754 61,024 - 24,338 6,814 306,069 - 654 591 125,883 707,057 494,880 18,671,813 1,950,751 - - 157,375 - 2,180,283 2,104,235 19,273,394 - - - 17,994,839 - - - 93,814,695 - 48,686 389,675 1,193,027 - 205,287 1,320,369 3,190,525 257,456 42,195 275,954 653,872 - 2,476,451 4,090,233 136,277,727 257,456 3,183,508 4,585,113 154,949,540 2,208,207 17,861 67,652 137,091 410,004 37,710 200,796 519,329 - - - 783,630 - - - 87,132 - 55,571 268,448 1,527,182 410,004 47,361,855 15,034,663 260,466,624 - 181,319 - 3,178,805 - 308,696 5,844,541 41,126,427 6,114,965 $ 47,851,870 $ 20,879,204 304,771,856 $ 6,114,965 556,078 $ 305,327,934 Page 13�of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION PROPRIETARY FUNDS FOR THE YEAR ENDED JUNE 30,2025 Business-type Activities-Enterprise Funds Sewage Disposal Stormwater Works Water Utility Utility OPERATING REVENUES Charges for sales and services $ 17,742,520 $ 13,168,000 $ 6,413,501 Other 63,773 684,331 410,639 Total Operating Revenues 17,806,293 13,852,331 6,824,140 OPERATING EXPENSES Employee expense 4,623,296 4,771,312 2,588,622 Utilities 925,573 1,116,518 38,511 Repairs and maintenance 1,870,529 475,853 51,627 Supplies and services 3,768,692 2,033,159 1,954,226 Insurance 199,173 177,578 39,205 Depreciation 3,622,002 1,417,390 2,629,675 Total Operating Expenses 15,009,265 9,991,810 7,301,866 OPERATING INCOME(LOSS) 2,797,028 3,860,521 (477,726) NONOPERATING REVENUES(EXPENSES) Intergovernmental 568,892 - 8,006,331 Investment earnings 325,513 644,978 1,144,317 Contributions 35,010 89,163 600 Interest expense (1,285,360) (373,315) (1,513,787) Gain(loss)on disposal of assets (8,417) 16,681 - Net Nonoperating Revenues(Expenses) (364,362) 377,507 7,637,461 WCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS AND TRANSFERS 2,432,666 4,238,028 7,159,735 Capital Contributions 4,169,565 1,845,363 1,680,235 Transfers In 276,665 255,793 6,168,497 Transfers Out (142,884) (142,884) (6,279,312) CHANGE IN NET POSITION 6,736,012 6,196,300 8,729,155 NET POSITION,BEGINNING,as previously presented 43,491,396 46,224,191 124,975,461 Restatements $ (135,404) $ (96,655) $ (79,674) Net position,beginning,as restated $ 43,355,992 $ 46,127,536 $ 124,895,787 NET POSITION,ENDING $ 50,092,004 $ 52,323,836 $ 133,624,942 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. Page 13��of 1594 EXHIBIT 6 Business-type Activities-Enterprise Funds Governmental Nonmajor Activities- Parking Enterprise Internal Service Facilities Funds Total Funds $ 2,620,903 $ 5,951,729 $ 45,896,653 $ 15,490,105 103,383 5,261 1,267,387 218,611 2,724,286 5,956,990 47,164,040 15,708,716 1,046,930 6,569,461 19,599,621 1,314,565 314,178 135,147 2,529,927 36,888 192,903 1,353,738 3,944,650 63,645 594,286 1,843,944 10,194,307 13,846,368 13,186 179,182 608,324 681,796 1,049,814 1,102,161 9,821,042 20,728 3,211,297 11,183,633 46,697,871 15,963,990 (487,011) (5,226,643) 466,169 (255,274) - 2,033,332 10,608,555 - 102,841 96,708 2,314,357 273,146 80,589 - 205,362 - (103,003) (25,926) (3,301,391) - 7,246 3,430 18,940 8,283 87,673 2,107,544 9,845,823 281,429 (399,338) (3,119,099) 10,311,992 26,155 983,763 - 8,678,926 - - 2,586,726 9,287,681 893,399 (2,061,429) (276,900) (8,903,409) - (1,477,004) (809,273) 19,375,190 919,554 49,370,163 21,777,510 285,838,721 5,195,411 $ (41,289) $ (89,033) $ (442,055) $ - $ 49,328,874 $ 21,688,477 285,396,666 $ 5,195,411 S 47,851,870 S 20,879,204 S 304,771,856 $ 6,114,965 (112,278) $ 19,262,912 Page 13/�of 1594 EXHIBIT 7 Business-type Activities-Enterprise Funds Sewage Disposal Water Stormwater Parking Works Utility Utility Facilities CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 17,999,887 $ 12,800,087 $ 6,529,776 $ 2,608,501 Cash payments to suppliers for goods and services (4,304,313) (3,823,467) (1,283,492) (1,179,390) Cash payments to employees for services (4,690,742) (4,932,752) (2,633,794) (1,089,942) Other operating receipts 63,773 684,331 410,639 103,383 NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES $ 9,068,605 $ 4,728,199 $ 3,023,129 $ 442,552 CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 276,665 255,793 6,168,497 - Transfers to other funds (142,884) (142,884) (6,279,312) (2,061,429) Proceeds from interfund balances - - - - Payment of interfund balances - - 417,467 - Contributions 35,010 89,163 600 80,589 Intergovernmental grant proceeds 79,675 - 7,117,808 - NET CASH PROVIDED BY(USED FOR)NONCAPITAL FINANCING ACTIVITIES 248,466 202,072 7,425,060 (1,980,840) CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets (8,417) 16,681 - 7,246 Acquisition and construction of capital assets (12,001,557) (816,710) (1,261,952) (109,473) Proceeds from issuance of debt 4,179,080 - 5,000 - Payment of debt (4,467,593) (1,920,851) (6,534,462) (599,312) Interest paid (1,308,564) (446,149) (1,618,217) (101,358) NET CASH PROVIDED(USED FOR)CAPITAL AND RELATED FINANCING ACTIVITIES (13,607,051) (3,167,029) (9,409,631) (802,897) CASH FLOWS PROVIDED BY INVESTING ACTIVITIES Interest received 438,002 576,083 1,207,998 111,105 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (3,851,978) 2,339,325 2,246,556 (2,230,080) CASH AND CASH EQUIVALENTS, BEGINNING $ 6,723,302 $ 11,915,499 $ 23,794,916 $ 2,634,208 CASH AND CASH EQUIVALENTS, ENDING $ 2,871,324 S 14,254,824 S 26,041,472 $ 404,128 See notes to financial statements Page 13�i of 1594 CITY OF DUBUQUE,IOWA STATEMENT OF CASH FLOWS PROPRIETARY FUNDS YEAR ENDED JUNE 30,2025 Business-type Activities-Enterprise Funds Governmental Nonmajor Activities- Enterprise Internal Service Funds Total Funds $ 6,006,498 $ 45,944,749 $ 15,991,614 (3,938,960) (14,529,622) (15,784,935) (6,671,407) (20,018,637) (1,513,193) 5,261 1,267,387 218,611 $ (4,598,608) $ 12,663,877 $ (1,087,903) 2,586,726 9,287,681 893,399 (276,900) (8,903,409) - 187,337 187,337 (159,473) - 417,467 - - 205,362 - 3,673,615 10,871,098 - 6,170,778 12,065,536 733,926 3,430 18,940 8,283 (1,676,790) (15,866,482) (15,891) 1,329,753 5,513,833 - (169,448) (13,691,666) - (23,892) (3,498,180) - (536,947) (27,523,555) (7,608) 97,179 2,430,367 280,811 1,132,402 (363,775) (80,774) $ 6,106,970 $ 51,174,895 $ 8,098,646 S 7,239,372 $ 50,811,120 $ 8,017,872 Page 13�of 1594 EXHIBIT 7 Business-type Activities-Enterprise Funds Sewage Disposal Water Stormwater Parking Works Utility Utility Facilities RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES Operating income(loss) $ 2,797,028 $ 3,860,521 $ (477,726) $ (487,011) Adjustments to reconcile operating income(loss)to net cash provided by(used for)operating activities Depreciation 3,622,002 1,417,390 2,629,675 1,049,814 Noncash lease revenue - (109,927) - - Change in assets and liabilities (Increase)decrease in receivables 257,367 (367,913) 116,275 (12,402) (Increase)decrease in inventories and prepaid items 45,993 (368,290) 11,744 (28,560) (increase)decrease in lease receivables - 90,050 - - Increase(decrease)in accounts payable 2,415,901 378,783 789,639 (36,277) (Decrease)increase in accrued liabilities 28,333 (53,589) (18,748) (15,062) Increase in net pension liability (167,050) (176,745) (59,186) (61,429) (Increase)in deferred outflows-pension related 96,445 90,482 35,743 34,230 Decrease(increase)in deferred outflows-OPEB related (26,688) (9,052) (3,592) 6,035 (Decrease)increase in deferred inflows-pension related (14,376) (14,386) 4,437 (92) Increase(decrease)in deferred inflows-OPEB related 239 (2,529) (5,687) 6,532 Increase in deferred amount on refunding (2,240) (10,975) (1,306) - (Decrease)increase in total OPEB liability 15,651 4,379 1,861 (13,226) Total Adjustments 6,271,577 867,678 3,500,855 929,563 NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES 9,068,605 4,728,199 3,023,129 442,552 RECONCILIATION OF CASH AND CASH EQUIVALENTS TO SPECIFIC ASSETS ON THE COMBINED STATEMENT OF NET POSITION Cash and investments,current and restricted 2,871,324 14,254,824 26,041,472 404,128 Less items not meeting the definition of cash equivalents - - - - Cash and cash equivalents at end of the year $ 2,871,324 $ 14,254,824 $ 26,041,472 $ 404,128 NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Contribution of capital assets from outside sources 2,322,840 1,584,600 1,529,310 - Amortization of bond discount(premium) 31,154 69,783 89,164 14,515 Net acquisition of capital assets through accounts and retainage payable (1,393,095) 136,291 - - Contributions of capital assets from Governmental Activities 1,846,725 260,763 150,925 983,763 See notes to financial statements Page 137�of 1594 EXHIBIT 7(continued) Business-type Activities-Enterprise Funds Governmental Activities- Nonmajor Internal Enterprise Service Funds Total Funds $ (5,226,643) $ 466,169 $ (255,274) 1,102,161 9,821,042 20,728 - (109,927) - 54,769 48,096 501,509 (36,750) (375,863) (41,807) - 90,050 - (390,199) 3,157,847 (1,114,431) 78,378 19,312 1,683 �a4s,so1� �sio,aii� �iso,ssa� 185,660 442,560 50,204 18,355 (14,942) - (6,559) (30,976) (99,863) (4,642) (6,087) - - (14,521) - (27,337) (18,672) - 628,035 12,197,708 (832,629) (4,598,608) 12,663,877 (1,087,903) 7,239,372 50,811,120 8,017,872 $ 7,239,372 $ 50,811,120 $ 8,017,872 - 5,436,750 - 763 205,379 - - (1,256,804) - - 3,242,176 - Page 138�of 1594 CITY OF DUBUQUE,IOWA EXHIBIT 8 STATEMENT OF FIDUCIARY NET POSITION CUSTODIAL FUNDS JUNE 30,2025 Custodial Funds ASSETS Cash and investments $ 156,061 Total Assets 156,061 LIABILITIES Unearned revenue 154,541 Total Liabilities 154,541 NET POSITION Restricted 1,520 Total Net Position $ 1,520 See notes to financial statements Page 138�of 1594 CITY OF DUBUQUE,IOWA EXHIBIT 9 STATEMENT OF CHANGES IN FIDUCIARY NET POSITION CUSTODIAL FUNDS FOR THE YEAR ENDED JUNE 30,2025 Custodial Funds ADDITIONS Other $ 23,861 DEDUCTIONS Payment to individuals, organization, or other agencies 57,623 Total Deductions 57,623 CHANGE IN NET POSITION (33,762) NET POSITION, BEGINNING 35,282 NET POSITION, ENDING $ 1,520 See notes to financial statements Page 138'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 Balance and Deficit Fund Net Positon 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 Page 13853'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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, 2025, $1,109,529 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. Page 138��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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). Page 138��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 for assets obtained in police seizures. Page 138$�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 Page 138'�i of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) residual balances outstanding between the governmental activities and business-type activities are reported in the government-wide financial statements as "internal balances." Advances between funds, as reported in the fund financial statements, are offset by a 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, 2025, and 2025 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. Page 13�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 Page 138�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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. Page 13�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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. Page 13�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) Subscription assets are reported with capital assets and subscription liabilities are reported with long-term debt on the statement of net position. Long-Term Obligations In the government-wide financial statements and proprietary fund types in the fund financial statements, long-term debt and other long-term obligations are reported as liabilities in the applicable governmental activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and discounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond premium or discount. In the fund financial statements, governmental fund types recognize bond premiums and discounts, as well as bond issuance costs, during the current period. The face amount of debt issued is reported as other financing sources. Premiums received on debt 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 ineasuring 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 ineasuring the total OPEB liability, deferred outflows of resources related to OPEB, deferred inflows 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 Page 13�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) 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. 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 $19,946,546 for the governmental activities and $1,048,995 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, 2025 consists of $13,184 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. Page 13�3'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 1 — SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) • 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 Sudget. • 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. Page 13��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 Other Significant Accounting Policies Other significant accounting policies are set forth in the financial statements and the notes thereto. Implementation of GASB Statement No. 101 During the current year, the City implemented GASB Statement No. 101, Compensated Absences. In addition to the value of the unused vacation time owed to employees upon separation of employment, the City now recognizes an estimated sick leave earned as of year-end that will be used by the employees as time off in future years as part of the liability for compensated absences. The effects of the change in accounting principle are summarized below in the "Restatement - GASB 101 Implementation" column in the table below. Net position Restatement - Net position 06/30/2024 as GASB 101 06/30/2024 as previously implementation restated renorted Government-wide Government activities $438,211,311 $(2,181,729) $436,029,582 Business-type activities 286,507,077 (442,055) 286,065,022 Total government-wide $724,718,388 $(2,623,784) $722,094,604 Proprietary Funds Enterprise Funds Major Funds: Sewer Fund 43,491,396 (135,404) 43,355,992 Water Fund 46,224,191 (96,655) 46,127,536 Stormwater Fund 124,975,461 (79,674) 124,895,787 Parking Fund 49,370,163 (41,289) 49,328,874 Non Major Enterprise Funds 21,777,510 (89,033) 21,688,477 Total enterprise funds $285,838,721 $(442,055) $285,396,666 Internal service funds $5,195,411 $— $5,195,411 Discretely presented component units DMASWA $24,957,544 $70,956 $25,028,500 Page 13��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 2 — DEFICIT FUND BALANCE AND DEFICIT FUND NET POSITION The following funds had a deficit net position/fund balance amount as of June 30, 2025: Nonmajor Governmental Fund: Airport Construction Fund 2,342,146 Nonmaior Enternrise Fund Refuse Fund 273,424 Internal Service Fund: General Service 358,126 Garage Service 189,970 Stores/Printing 5,934 The Debt Service Fund and Airport Construction Fund deficits will be addressed the next fiscal year with additional transfers to the fund. The Refuse fund will be addressed the next fiscal year with additional transfers, and rate adjustments. The General Service Fund, Garage Service Fund and Printing/Shop Fund deficits 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 $14,461 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 $144,728,843, and the bank balance was $149,937,063. The City's deposits in banks at June 30, 2025, 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 $20,107,567 and the bank balance was $21,195,714. The Agency's deposits in banks at June 30, 2025, 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, 2025, 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 $ 958,793 $ 958,793 U.S.Treasury Securities 2,609,229 4,026,351 1,322,139 7,957,719 Federal Agency Obligations 5,468,655 7,077,269 959,576 7,032,851 20,538,351 Corporate Stock 87,726 87,726 $ 9,124,403 $ 11,103,620 $ 2,281,715 $ 7,032,851 $ 29,542,589 Page 13�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 3 - CASH ON HAND, DEPOSITS,AND INVESTMENTS (continued) The City and the Dubuque Metropolitan Solid Waste Agency are authorized by state 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; prime eligible bankers acceptances; certain high rated commercial paper; perfected repurchase agreements; certain registered open-end management investment companies; certain joint investment trusts; and warrants or improvement certificates of a drainage district. Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Permanent Trust Fund. The City uses the fair value hierarchy established by generally accepted accounting principles based on the valuation inputs used to measure the fair value of the asset. Level 1 inputs are quoted prices in active markets for identical assets. Level 2 inputs are significant other observable inputs. Level 3 inputs are significant unobservable inputs. All of the City's investments, except for U.S. Treasury Securities, Federal Agency Obligations, and Managed Accounts L/T CD which were valued by the custodians of the securities using pricing models based on credit quality, time to maturity, stated interest rates, and market-rate assumptions (Level 2 inputs), were determined using the last reported sales price at current exchange rates. (Level 1 inputs) Interest Rate Rish. The City's investment policy limits the investments 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. Page 13�i of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 3 — CASH ON HAND, DEPOSITS,AND INVESTMENTS (continued) 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. 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 $ 14,461 Carrying amount of deposits 144,728,843 Carrying amount of investments 29,542,589 Total $ 174,285,893 Government-wide Cash and investments $ 145,241,847 Cash and investments - restricted 28,887,985 Fiduciary Cash and investments 156,061 Total $ 174,285,893 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 $ 1,200 Carrying amount of deposits 20,107,567 Total $ 20,108,767 Cash and investments $ 13,813,408 Cash and investments - restricted 6,295,359 Total $ 20,108,767 A reconciliation of cash and investments as shown on the government-wide statement of net position for the Dubuque Initiatives and Subsidiaries (December 31, 2024) follows: Deposits $ 5,435,713 Beneficial interest in assets held by others 320,607 Total $ 5,756,320 Cash and investments $ 5,435,713 Cash and investments-restricted 320,607 Total $ 5,756,320 Page 139��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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, 2025) follows: Deposits $ 1,894,554 Total $ 1,894,554 Cash and investments $ 1,576,394 Cash and investments-restricted 318,160 Total $ 1,894,554 NOTE 4 - NOTES RECEIVABLES 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, 2025 the City had the following notes receivable. Original Interest Current Balance Rate Issued Maturity Balance Portion Downtown Rehabilitation Loan Program Judy Davison $ 300,000 3 % 2020 12/1/2040 $ 284,000 $ - Gronen Adaptive 300,000 2 2006 5/1/2036 106,513 9,068 CARich Properties, LLC 120,000 - 2020 9/1/2030 63,000 12,000 Franklin Investments,LLC 300,000 3 2021 4/1/2041 258,000 - HJD Landlord LLC 466,000 3 2016 4/1/2036 356,798 28,300 Interstate Building LLP 300,000 3 2010 9/22/2030 120,621 21,537 Chadwick Block,LLC 340,000 - 2024 3/1/2030 269,167 56,667 Virtual Velocity 300,000 - 2025 11/1/2029 300,000 7,554 Downtown Housing Incentive Loan Caradco Landlord,LLC 4,500,000 3 2012 6/1/2030 2,313,767 233,166 S 4,071,866 S 368,292 Page 139�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 4 — NOTES RECEIVABLE (continued) Interest Current Rate Balance portion Community Development Installment Loans Receivables Residential Rehabilitation Installment Loan Programs First Time Home Buyers 6 % $ 160,086 $ 27,000 Homebuyers Assistance Program 6 797,674 104,000 Infill - 20,421 3,607 RRP Reserve - 92,353 13,000 Washington Neighborhood Revitalize - 14,658 1,000 The Accessibility Rehabilitation Program(for rentals) 6 212,440 4,000 Iowa Finance Authority - 1,210,882 41,253 HOME Program(1) - 65,255 10,000 Historic Preservation Revolving Loan Fund/Historic Preservation Housing Forgivable Loan Program 6 2,223 1,000 MicroLending - 36,404 3,000 $ 2.612,396 $ 207,860 (1)Principal payments deferred if one tenant is low income At December 31, 2024, Dubuque Initiatives and Subsidiaries had the following notes receivable: Chadwick Block, 6.50%, unsecured,matures February 2030 $ 150,000 Dubuque Racing Association,unsecured, 3.50%, matures October 2043 3,835,461 Dubuque Racing Association,unsecured, no interest, matures October 2026 150,000 Virtual Velocity, secured,7.00%matures August 2027 300,000 2400 Central Loan, secured, no interest, matures June 2030(A) 50,000 1824 Central Loan, unsecured, no interest, matures October 2027 86,700 1828 Central Loan, unsecured, 6.00%, matures June 2027 38,556 Less: allowance for doubtful accounts (86,768) Total notes receivable $ 4,523,949 (1)The note provides the ability to draw additional funds through June 2025. Throughout this period, interest only payments are required at 2.00%. Once all draws are complted, monthly payments will be required of$1,840. Page 140�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 5 — INTERFUND BALANCES AND TRANSFERS Interfund balances at June 30, 2025, include amounts due to/from other funds. Interfund balances are as follows: Due From Due To OtherFunds OtherFunds General Fund $ 5,228,593 $ - Nonmajor Governmental - 5,036,256 Refuse Collection - 187,337 Internal Service - 5,000 $ 5.228,593 $ 5.228,593 The outstanding balances due to the General Fund primarily represent temporary cash advances provided to various capital project funds—specifically for airport and general construction activities—to cover ongoing project expenditures pending the receipt of permanent financing or grant reimbursements. Additionally, minor balances owed by the refuse collection enterprise fund and internal service operations result from routine, year-end timing differences in the settlement of interfund billings for costs and supplies. Page 140�1�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 5 — INTERFUND BALANCES AND TRANSFERS (continued) Interfund transfers for the year ended June 30, 2025, consisted of the following: Transfers From Tax Sewer Increment Nonmajor Disposal Debt Governm Water Stormwater Parking Nonmajor Transfers to General Financing Service ental Works Utility Utility Facilities Enterprise Total General $ - $ 15,970 $ - $2,401,495 $ 142,884 $142,884 $ 15,174 $ - $ - $2,718,407 Community Development 1 70,403 - - - - 417,467 - - 487,871 Debt Service 512,672 2,923,626 - 1,594,753 - - 5,616,671 2,061,429 276,900 12,986,051 Nonmajor Governmental 960,428 1,561,095 - 2,407,960 - - - - - 4,929,483 Internal Service Funds 893,399 - - - - - - - - 893,399 Sewage Disposal Works 45,314 - 1,351 - - 230,000 - - 276,665 Water Utility 255,793 - - - - - - - - 255,793 Stormwater _ - 5,620,671 547,826 - - - - - 6,168,497 Utility Parking Facilities - - - - - - - - - - Nonmajor Enterprise 2,535,995 - - 50,731 - - - - - 2,586,726 $5,203,602 $4,571,094 $5,620,671 $7,004,116 $ 142,884 $142,884 $ 6,279,312 $2,061,429 $ 276,900 $31,302,892 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. Page 140�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS Capital, lease and subscription asset activity for the year ended June 30, 2025, was as follows: Primary Government: Governmental activities: Beginning Transfers Transfers Ending Balance In Out Increases Decreases Balance Capital assets,not being depreciated: Land $ 108,713,096 $ - $ - $ - $ - $ 108,713,096 Construction in Progress 25,824,791 - (3,242,176) 1,637,066 - 24,219,681 Total Capital assets,not being depreciated 134,537,887 - (3,242,176) 1,637,066 - 132,932,777 Capital and lease assets,being depreciated: Buildings 148,471,733 - - 4,846,156 (100,176) 153,217,713 Improvements other than buildings 31,762,782 - - 647,796 (31,390) 32,379,188 Machinery and equipment 58,807,495 - - 8,015,644 (2,028,212) 64,794,927 Lease equipment 209,101 - - - (55,894) 153,207 Lease real estate 208,093 - - 301,895 - 509,988 Subscription asset 4,531,501 - - 100,772 (76,889) 4,555,384 Infrastructure 276,524,915 - - 16,802,498 - 293,327,413 Total capital and lease assets, being depreciated 520,515,620 - - 30,714,761 (2,292,561) 548,937,820 Less accumulated depreciation and amortization for: Buildings (55,316,686) - - (2,606,300) 100,176 (57,822,810) Improvements other than buildings (16,274,174) - - (1,067,266) 31,390 (17,310,050) Machinery and Equipment (36,206,224) - - (3,360,316) 2,034,859 (37,531,681) Lease equipment (76,320) - - (30,641) 55,893 (51,068) Lease real estate (62,427) - - (87,737) - (150,164) Subscription asset (1,826,733) - - (1,379,470) 76,889 (3,129,314) Infrastructure (101,562,631) - - (3,748,233) - (105,310,864) Total accumulated depreciation and amortization (211,325,195) - - (12,279,963) 2,299,207 (221,305,951) Total capital and lease assets, being depreciated,net 309,190,425 - - 18,434,798 6,646 327,631,869 Governmental activities capital and lease assets,net $ 443,728,312 $ - $ (3,242,176) $ 20,071,864 $ 6,646 $460,564,646 Page 140�'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS (continued) Business-type activities: Beginning Transfers Transfers Ending Balance In Out Increases Decreases Balance Capital and lease assets,not being depreciated: Land $ 25,349,764 $ - $ - $ 693,853 $ 26,043,617 Construction in progress 12,865,516 3,242,176 - 7,967,830 (212,469) 23,863,053 Total Capital and lease assets,not being depreciated 38,215,280 3,242,176 - 8,661,683 (212,469) 49,906,670 Capital and lease assets,being depreciated/amortized: Buildings 158,052,767 - - 47,000 - 158,099,767 Improvements other than 231,886,259 - - 6,567,144 - 238,453,403 buildings Machinery and equipment 129,071,254 - - 4,996,712 (857,092) 133,210,874 Lease equipment 267,361 - - - - 267,361 Subscription asset 21,549 - - - (21,549) - Total capital and lease assets, being depreciated/ amortized 519,299,190 - - 11,610,856 (878,641) 530,031,405 Less accumulated depreciation and amortization for: Buildings (63,876,781) - - (2,024,102) - (65,900,883) Improvements other than (51,636,961) - - (3,696,367) - (55,333,328) buildings Machinery and equipment (57,070,368) - - (4,071,959) 843,449 (60,298,878) Lease equipment (72,368) - - (24,123) - (96,491) Subscription asset (17,059) - - (4,489) 21,548 - Total accumulated depreciation/amortization (172,673,537) - - (9,821,040) 864,997 (181,629,580) Total capital and lease assets, being depreciated,net 346,625,653 - - 1,789,816 (13,644) 348,401,825 Business-type activities capital and lease assets,net $ 384,840,933 $ 3,242,176 $ - $ 10,451,499 $ (226,113) $ 398,308,495 Page 140��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 $ 1,140,410 Public works 6,169,777 Health and social services 3,821 Culture and recreation 2,333,311 Community and economic development 149,735 General government 2,462,181 Capital assets held by the government's internal service funds are charged to various functions based on their usage of their assets 20,728 Total depreciation and amortization expense - governmental activities $ 12,279,963 Business-type activities: Sewage disposal works $ 3,622,002 Water utility 1,417,390 Stormwater utility 2,629,675 Parking facilities 1,049,814 Refuse collection 253,258 Salt 27,639 Transit system 821,264 Total depreciation and amortization expense -business-type activities $ 9,821,042 Page 140��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 6 — CAPITAL, LEASE AND SUBSCRIPTION ASSETS (continued) Dubuque Metropolitan Area Solid Waste Agency(Component Unit): Beginning Ending Balance Increases Decreases Balance Capital assets, not being depreciated: Land $ 2,737,804 $ - $ - $ 2,737,804 Construction in Progress 12,032 1,285,273 - 1,297,305 Total capital assets, not being depreciated 2,749,836 1,285,273 - 4,035,109 Capital assets,being depreciated: Buildings 566,523 - - 566,523 Improvements to other than buildings 21,069,589 1,076,308 - 22,145,897 Machinery and equipment 5,190,082 698,593 (516,898) 5,371,777 Total capital assets,being depreciated 26,826,194 1,774,901 (516,898) 28,084,197 Less accumulated depreciation for: Buildings (230,043) (42,343) - (272,386) Improvements to other than buildings (9,211,233) (800,501) - (10,011,734) Machinery and equipment (2,825,298) (393,862) 515,661 (2,703,499) Total accumulated depreciation (12,266,574) (1,236,706) 515,661 (12,987,619) Total capital assets,being depreciated, net 14,559,620 538,195 (1,237) 15,096,578 Dubuque Metropolitan Area Solid Waste, capital assets $ 17,309,456 $ 1,823,468 $ (1,237) $ 19,131,687 Depreciation expense of$1,236,706 was charged to the Dubuque Metropolitan Area Solid Waste Agency. Page 140�0�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 $107,735,500. During fiscal year 2025, the City issued $22,595,000 of new general obligation bonds . 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, 2025, are as follows: Page 140�i of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 Amount Amount Date of Interest Originally Outstanding Purpose Issue Maturity Dates Rates Issued End of Year 06/01/17- Corporate Purpose Series 2016A 4/4/2016 6/1/2035 2.00-3.75% $ 2,830,000 $ 1,615,000 Corporate Purpose Refunding Series 06/01/16- 2016B 4/4/2016 6/1/2028 2.00-3.00 10,920,000 760,000 06/01/17- Corporate Purpose Series 2016C 4/4/2016 6/1/2035 2.00-3.13 4,145,000 2,425,000 06/01/18- Corporate Purpose Series 2017A 4/17/2017 6/1/2030 3.00 8,495,000 2,022,584 Corporate Purpose Refunding Series 06/01/18- 2017B 4/17/2017 6/1/2030 3.00 9,745,500 3,820,000 Corporate Purpose Refunding Series 06/01/18- 2017C 4/17/2017 6/1/2030 3.00-3.45 2,120,000 970,000 06/01/18- Corporate Purpose Series 2018A 3/19/2018 6/1/2031 3.00-4.00 4,950,000 2,515,988 Corporate Purpose Refunding Series 06/01/18- 2018B 3/19/2018 6/1/2026 3.00-315 1,005,000 145,000 06/01/22- Corporate Purpose Series 2019A 6/20/2019 6/1/2039 3.00 2,240,000 1,960,000 06/20/20- Corporate Purpose Series 2019B 6/20/2019 6/1/2027 3.00 860,000 220,000 Corporate Purpose Refunding Series 06/01/20- 2019C 7/3/2019 6/1/2032 3.00 4,240,000 2,125,000 Corporate Purpose Refunding Series 06/01/22- 2021A 6/2/2021 6/1/2041 2.00 27,995,000 19,540,000 Corporate Purpose Refunding Series 06/01/22- 2021B 6/2/2021 6/1/2036 2.00 12,535,000 8,870,000 Corporate Purpose Refunding Series 06/01/22- 2022A 5/16/2022 6/1/2042 4.00-4125 2,345,000 2,145,000 Corporate Purpose Refunding Series 06/01/22- 2022B 5/16/2022 6/1/2042 4.00-4.70 7,220,000 7,055,000 08/01/23- Corporate Purpose 2023A 8/1/2023 06/01/2043 4.30-6.00 6,090,000 5,890,000 03/04/25- Corporate Purpose Series 2025A 03/04/2025 06/01/2044 4.00-5.00 6,420,000 6,420,000 03/04/25- Corporate Purpose Series 2025B 03/04/2025 06/01/2044 4.30-5.30 8,370,000 8,370,000 03/04/25- Corporate Purpose Series 2025C 03/04/2025 06/01/2044 4.50-6.00 8,945,000 8,945,000 $ 131,470,500 $ 85,813,572 Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7— LONG-TERM DEBT(continued) Annual debt service requirements to maturity for general obligation bonds are as follows: Fiscal Year Governmental Activities Business-type Activities June 30 Principal Interest Principal Interest 2026 $ 4,146,061 $ 2,648,685 $ 2,908,939 $ 583,271 2027 4,496,957 2,267,040 3,023,045 493,367 2028 4,492,924 2,136,365 3,037,076 410,966 2029 4,995,063 2,006,482 2,839,937 328,111 2030 4,858,944 1,855,562 2,163,642 251,278 2031-2035 17,426,921 7,237,086 6,658,072 577,756 2036-2040 13,735,415 4,280,392 654,585 136,591 2041-2045 9,993,227 1,115,551 382,764 35,134 Total $ 64,145,512 $ 23,547,163 $ 21,668,060 $ 2,816,474 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, 2025, are as follows: Amount Amount Date of Maturity Interest Originally Outstanding Current Purpose Issue Dates Rates Issued End of Year Portion Diamond Jo Parking 06/01/11-0 Ramp 10/16/2007 6/01/37 7.50% $ 23,025,000 $ 15,565,000 $ 845,000 Annual debt service requirements to maturity for tax increment financing bonds are as follows: Fiscal Year Governmental Activities June 30 Principal Interest 2026 $ 845,000 $ 1,167,375 2027 910,000 1,104,000 2028 975,000 1,055,750 2029 1,050,000 962,625 2030 1,130,000 883,875 2031-2035 7,045,000 3,014,625 2036-2040 3,610,000 411,000 Total $ 15,565.000 $ 8,599,250 Page 140�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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, 2025, are as follows: Amount Amount Date of Maturity Interest Originally Outstanding Purpose Issue Dates Rates Issued End of Year 06/01/23- Sales Tax Incrementa12014 O5/19/2014 6/1/2029 4.00-5.00 % $ 7,190,000 $ 4,875,000 06/01/23- Sales Tax Incrementa12015A 06/15/2015 6/1/2031 3.25-4.00 20,800,000 14,575,000 Water Revenue Refunding Series 06/01/22- 2021C 7/19/2021 6/1/2030 2.00 3,505,000 2,055,000 $ 31,495,000 $ 21,505,000 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 $428,700 and $5,922,889, respectively. During the year ended June 30, 2025, 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 $24,228,394. Page 14'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 Business-type Activities June 30 Principal Interest 2026 $ 3,740,000 $ 806,381 2027 3,895,000 670,019 2028 4,035,000 533,694 2029 4,180,000 389,400 2030 2,995,000 217,500 2031-2035 2,660,000 106,400 Total $ 21,505,000 $ 2,723,394 Page 14'�t3of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 Revolving Loan Funds (SRF). The City issued an additional $4,301,411 of SRF debt in 2025 for various City purposes. The City has pledged income derived from the acquired or constructed assets to pay debt service. Capital loan notes payable at June 30, 2025, are as follows: Final Amount Date Maturity Interest Amount Outstanding Current Purpose Authorized Dates Rates Authorized End ofYear Portion Drinking Water-Clear Wells 10/18/2007 6/1/2028 2.00% $ 1,037,000 $ 177,000 $ 57,000 Clean Water-West 32nd Stormwater 1/14/2009 6/1/2028 2.00 1,847,000 355,000 115,000 North Catfish Creek Stormwater 1/13/2010 6/1/2030 2.00 800,000 250,000 47,000 North Catfish Creek Sewer 1/13/2010 6/1/2030 2.00 912,000 285,000 53,000 Water Meter Replacement-Water 2/12/2010 6/1/2030 2.00 7,676,000 1,172,000 180,000 Water Pollution Control Plant/Green A 8/18/2010 6/1/2039 2.00 74,285,000 44,755,000 2,802,000 Upper Bee Branch-Stormwater 10/27/2010 6/1/2041 2.00 7,850,000 5,097,000 248,000 WPCP Go Generation 5/17/2013 6/1/2033 2.00 3,048,000 1,366,000 159,000 Water Meter Replacement-Sewer 5/31/2013 6/1/2030 2.00 3,058,000 1,172,000 180,000 Lower Bee Branch-Stormwater 2/28/2014 6/1/2033 2.00 1,029,000 151,000 18,000 Bee Branch-Stormwater/Floating Islan 4/30/2021 6/1/2037 1.43 22,138 16,114,000 1,258,000 CIWA Purchase 7/7/2017 6/1/2037 2.00 10,198,000 5,804,000 439,000 Kerper Sanitary Sewer and Eagle Point 3/8/2019 6/1/2038 0.75 2,992,000 1,781,000 131,000 Upper Bee Branch Railroad Culverts 6/7/2019 6/1/2040 2.00 16,382,000 12,873,000 744,000 Roosevelt Water Tower 8/9/2019 6/1/2040 2.00 4,400,000 3,445,000 203,000 High Strength Waste 9/24/2021 9/24/2044 - 290,000 285,336 6,187 Granger Creek/Twin Ridge 9/20/2024 9/20/2044 2.84 2,536,000 1,762,246 36,710 Water Webber Extension Ext P&D 1/7/2022 1/7/2025 - 1,570,000 541,098 11,564 Force Main WPFP 3/3/2023 6/1/2043 1.00 1,950,000 204,650 90,000 Old Mill Lift Station 2/7/2025 6/1/2046 2.54 26,221,000 3,067,023 64,199 $ 168,103,138 $100,657,353 $ 6,842,660 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%o. 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 Page 14'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) issued to finance the West 32nd Stormwater Detention Basin improvements by the Stormwater Fund. The interest rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2009, with the last payment in Fiscal Year 2028.The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing. On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water Program Revolving Loan Fund for a line of credit up to $800,000. This line of credit was issued to finance the North Catfish Creek improvements by the Stormwater Fund. The interest rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 2030.The note payable is payable solely from the Stormwater Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing. On January 13, 2010 the City entered into an agreement with the Iowa Finance Authority Clean Water Program Revolving Loan Fund for a line of credit up to $912,000. This line of credit was issued to finance the North Catfish Creek improvements by the Sanitary Sewer Fund. The interest rate for this line of credit is 2.00%. Annual payments began in Fiscal Year 2010, with the last payment in Fiscal Year 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. Page 14'�'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) 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. 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 Sranch 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 Page 14'��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) 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. 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 and 2.0% interest rate. 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. Annual payments began in Fiscal Year 2024, with the last payment in Fiscal Year 2044. 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 and 2.54% interest rate. 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. Annual payments began in Fiscal Year 2024, with the last payment in Fiscal Year 2044. 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 and 2.54% interest rate. This line of credit was issued to finance the planning and design of the Sanitary Sewer Master Plan project by the Sanitary Sewer Fund. Annual payments began in Fiscal Year 2024, with the last payment in Fiscal Year 2044. 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 Page 14'I��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) 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. On February 7, 2025 the City entered into an agreement with the Iowa Finance Authority Clean Water Program Revolving Loan Fund for a line of credit up to $26,221,000. This line of credit was issued to finance the planning and design of the Old Mill Road Lift Station by the Sanitary Sewer Fund. The interest rate for this line of credit is 2.54%. The line of credit matures in Fiscal Year 2046. The note payable is solely from the Sanitary Sewer Fund. The debt is owned by the Iowa Finance Authority and; therefore, constitutes direct borrowing. Annual debt service requirements to maturity for capital loan notes are as follows: Fiscal Year Business-type Activities June 30 Principal Interest 2026 $ 6,842,660 $ 2,024,471 2027 7,096,367 1,793,332 2028 7,169,905 1,661,292 2029 7,100,339 1,527,165 2030 7,239,625 1,394,228 2031-2035 35,522,861 4,969,675 2036-2040 27,844,690 1,663,546 2041-2045 1,840,908 109,689 Total $ 100,657,355 $ 15,143,398 At June 30, 2025, the City of Dubuque had $4,301,411 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 2026 and 2027. The Sewer Utility Page 14'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7— LONG-TERM DEBT(continued) 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, 2025, are as follows: Amount Amount Date of Maturity Interest Originally Outstanding Current Purpose Issue Dates Rates Issued End of Year Portion Iowa Finance 06/01/20-0 Authority 8/26/2011 6/01/30 3.00% $ 4,500,000 $ 2,314,172 $ 233,154 Bowling&Beyond 12/04/12-12 Inc. 10/15/2012 /04/32 - 1,000,000 350,000 50,000 $ 5,500,000 $ 2,664,172 $ 283,154 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 powntown 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. Annual debt service requirements to maturity for loans payable are as follows: Fiscal Year Governmental Activities June 30 Principal Interest 2026 $ 283,154 $ 67,690 2027 290,202 60,642 2028 297,462 53,382 2029 304,941 45,903 2030 1,388,413 38,197 2031-2035 100,000 - Total $ 2,664,172 $ 265,814 Page 14'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) 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, 2025 in which the City is a lessee: Amount Date of Maturity Discount Initial Outstanding Current Purpose Issue Dates Rates Liability End of Year Portion Governmental Activtities Building Leases 7/1/2021 6/30/2031 1.57% $ 509,988 $ 359,107 $ 86,493 Equipment Leases 11/1/2023 11/1/2028 3.80 153,207 115,041 29,971 $ 663,195 $ 474,148 $ 116,464 Business-Type Activities Building Leases 7/1/2021 7/31/2032 3.03 $ 267,361 $ 180,585 $ 23,210 Annual debt service requirements to maturity for leases payable are as follow: Fiscal Year Governmental Activities Business-type Activities June 30 Principal Interest Principal Interest 2026 $ 116,464 $ 15,284 $ 23,210 $ 5,152 2027 120,996 10,752 23,923 4,439 2028 125,706 6,042 24,649 3,714 2029 86,415 1,341 25,416 2,947 2030 24,568 210 26,197 2,166 2031-2033 - - 57,190 1,899 Total $ 474,149 $ 33,629 $ 180,585 $ 20,317 Page 14'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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, 2025: Amount Date of Maturity Discount Initial Outstanding Current Purpose Issue Dates Rates Liability End of Year Portion Governmental Activities Software 7/1/2022 7/1/2025 3.00% $ 28,262 $ — $ — Software 10/1/2022 9/30/2025 3.87 22,235 — — Software 7/10/2022 7/9/2025 3.86 24,865 — — Software 6/1/2023 5/31/2026 5.08 128,227 — — Software 7/1/2022 4/30/2026 3.88 1,884,766 — — Software 7/1/2022 5/11/2027 3.89 148,802 34,585 34,585 Software 10/1/2022 9/30/2027 3.90 350,570 165,692 71,852 Software 6/1/2023 5/31/2028 4.83 257,194 156,890 51,326 Software 1G�U^�LUL 11/30/2027 2.36 100,772 66,385 32,800 $ 2,945,693 $ 423,552 $ 190,563 Business-Type Activities $ - $ - $ - Annual debt service requirements to maturity for subscriptions payable are as follow: Fiscal Year Governmental Activities June 30 Principal Interest 2026 $ 190,563 $ 14,600 2027 162,150 7,059 2028 70,839 1,386 $ 423,552 $ 23.045 Page 141�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2025, was as follows: Balance Beginning of Balance End Due Within Year Additions Reductions of Year One Year Governmental activities: General obligation bonds $ 45,386,780 $ 22,595,000 $ (3,836,268) $ 64,145,512 $ 4,146,061 Unaccreted premium 885,813 334,435 (147,847) 1,072,401 - Total general obligation bonds 46,272,593 22,929,435 (3,984,115) 65,217,913 4,146,061 Tax increment financing bonds 16,350,000 - (785,000) 15,565,000 845,000 Unamortized discounts (83,312) - 10,434 (72,878) - Total tax increment financing 16,266,688 - (774,566) 15,492,122 845,000 bonds Loans payable 2,940,486 - (276,314) 2,664,172 283,154 Lease payable 285,404 301,893 (113,149) 474,148 116,464 Subscriptions payable 1,080,538 100,772 (757,758) 423,552 190,563 Compensated absences 10,080,559 - (386,799) 9,693,760 735,101 Total governmental activities $ 76,926,268 $ 23,332,100 $ (6,292,701) $ 93,965,667 $ 6,316,343 Business-type activities: General obligation bonds $ 23,545,801 $ 1,140,000 $ (3,017,741) $ 21,668,060 $ 2,908,939 Unaccreted premium 563,994 72,422 (122,143) 514,273 - Unamortized discounts (9,093) - 9,093 - - Total general obligation bonds 24,100,702 1,212,422 (3,130,791) 22,182,333 2,908,939 Revenue bonds 25,160,000 - (3,655,000) 21,505,000 3,740,000 Unaccreted premium 352,632 - (97,530) 255,102 - Unamortized discounts (29,473) - 4,210 (25,263) - Total revenue bonds 25,483,159 - (3,748,320) 21,734,839 3,740,000 Notes payable 103,352,351 4,301,411 (6,996,407) 100,657,355 6,842,660 Lease payable 203,103 - (22,518) 180,585 23,210 Subscriptions payable - - - - - Compensated absences 1,312,070 - (21,149) 1,290,921 97,894 Total business-type activities $ 154,451,385 $ 5,513,833 $ (13,919,185) $ 146,046,033 $ 13,612,703 For the governmental activities, compensated absences are generally liquidated by the General Fund, Community Development Fund, and Section VIII Housing Fund. Page 14z'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7— LONG-TERM DEBT(continued) Legal Debt Margin Calculation Estimated actual value $ 6,438,522,409 Debt limit- 5% of total actual valuation 321,926,120 Debt applicable to limit (94,817,266) Legal debt margin $ 227,108,854 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 revenues. 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, 2025 is as follows: Amount Amount Date of Interest Originally Outstanding Purpose Issue Maturity Dates Rates Issued End of Year Landfill Facility 12/30/2014 06/01/16-06/01/34 2.0-4.0% $ 4,500,000 $ 2,445,000 Landfill Facility 12/28/2016 06/01/17-06/01/36 3.0 5,100,000 3,225,000 $ 9,600,000 $ 5,670,000 Annual debt service requirements to maturity of the general obligation bond is as follows: Fiscal Year June 30 Principal Interest 2026 $ 490,000 $ 172,965 2027 505,000 158,865 2028 520,000 144,328 2029 535,000 129,365 2030 555,000 113,965 2031-2035 2,725,000 300,435 2036-2037 340,000 11,050 Total $ 5,670,000 $ 1,030,973 Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 7- LONG-TERM DEBT(continued) Changes in Long-Term Liabilities. Long term liability activity for the year ended June 30, 2025 is as follows: Balance Beginning of Year Balance End Due Within (as restated) Additions Reductions of Year One Year General obligation bond $ 6,145,000 $ - $ (475,000) $ 5,670,000 $ 490,000 Unamortized premium 153,244 - (12,857) 140,387 - Total general obligation bond 6,298,244 - (487,857) 5,810,387 490,000 Compensated absences 107,109 10,984 - 118,093 8,955 Total Landfill $ 6,405,353 $ 10,984 $ (487,857) $ 5,928,480 $ 498,955 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. 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 $936,469 in the Health Insurance Reserve Fund and $804,000 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 Page 14z'�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 8 — RISK MANAGEMENT(continued) statements indicates that it is probable that a liability has been incurred at the date of the financial statements and the amount of the loss can be reasonably estimated. Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the fiscal years ended June 30, 2025 and 2024, are summarized as follows: Health Workers' Insurance Compensation Reserve Fund Reserve Fund Liabilities at June 30, 2023 $ 471,617 $ 703,944 Claims and changes in estimates during fiscal year 2024 10,425,895 1,070,035 Claim payments (9,275,500) (455,294) Liabilities at June 30, 2024 1,622,012 1,318,685 Claims and changes in estimates during fiscal year 2025 6,493,788 82,203 Claim payments (7,179,331) (596,888) Liabilities at June 30, 2025 $ 936,469 $ 804,000 A portion of the Workers' Compensation Reserve is reported in the General Fund. 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 800 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, cyber 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 inembership 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 does not obtain property Page 14z'�'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 8 — RISK MANAGEMENT(continued) insurance through the Pool. Instead, property, inland marine, and boiler/machinery coverage are purchased through commercial insurance provider Chubb. 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, 2025, were $925,884. 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 $500,000 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, 2025, 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. NOTE 9 — COMMITMENTS AND CONTINGENT LIABILITIES Grants The City has received financial assistance from numerous federal and state agencies in the form of grants and entitlements. The disbursement of funds received under these programs generally requires compliance with terms and conditions specified in the grant agreements and is subject to audit by the grantor agencies. Any disallowed claims resulting from such audits could become a liability of the applicable fund. However, in the opinion of management, liabilities resulting from disallowed claims, if any, will not have a material effect on the City's financial position as of June 30, 2025. 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. Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 Construction Contracts The City has recognized as a liability only that portion of construction contracts representing construction completed through June 30, 2025. The City has additional commitments for signed construction contracts of $56,406,048 as of June 30, 2025. These commitments will be funded by federal and state grants, cash reserves, and bond proceeds. Page 142��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 exists since 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 Employees' 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 PolicX - 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 Liabilitv - The City's OPEB liability of $4,195,408 reported as of June 30, 2025 was measured as of June 30, 2025 (the measurement date), and was determined by an actuarial valuation as of June 30, 2024, which was rolled forward to June 30, 2025. The City's proportion is based on the number of employees in the plan. The City's proportion was 98% as of June 30, 2025. Changes in the Total OPEB LiabilitX Total OPEB Liability Total OPEB Liability beginning of year $ 4,397,046 Changes for the year: Service cost 165,984 Interest 177,229 Other changes (8,288) Changes in experience Changes in assumptions (178,454) Benefit payments (358,109) Net Changes (201,638) Total OPEB Liability end of year $ 4,195,408 Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 10 — OTHER POST EMPLOYMENT BENEFITS(OPEB)(continued) Actuarial Methods and Assumptions - The total OPEB liability in the June 30, 2025 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, 2025 3.00%per annum Rates of salary increase 4.00%per annum,including effective June 30, 2025 inflation Discount rate effective June 4.81%compounded annually, 30, 2025 including inflation 6.00%initial rate decreasing to an Healthcare cost trend rate ultimate rate of 4.50%(ultimate effective June 30, 2025 rate reached in Fiscal Year 2039) Discount Rate - The discount rate used to measure the total OPEB liability was 4.21% 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, 2025. 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 $14,565 to 19,633 per year for retirees depending on the age of retiree. The actuarial assumptions used in the June 30, 2025 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 or 1% higher than the current discount rate. 1%Decrease(3.21%) Discount Rate (4.21%) 1% Increase(5.21%) Total OPEB Liability $ 3,901,535 $ 4,195,408 $ 4,518,413 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 or 1% higher than the current healthcare cost trend rates. Healthcare Cost 1% Decrease (5.00%) Trend Rate (6.00%) 1% Increase(7.00%) Total OPEB Liability $ 3,812,957 $ 4,195,408 $ 4,647,347 Page 14�i of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 10 — OTHER POST EMPLOYMENT BENEFITS(OPEB)(continued) OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30, 2025 the City recognized OPEB expense of $226,807. At June 30, 2025 the City reported deferred outflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes in Experience $ 152,248 $ 338,788 Changes in Assumptions 313,089 1,822,651 Change in Proportion 185,025 192,461 $ 650,362 $ 2,353,900 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 2026 $ (210,926) 2027 (212,700) 2028 (235,478) 2029 (239,975) 2030 (207,091) Thereafter (597,368) $ (1,703,538) Dubuque Metropolitan Area Solid Waste A ency Specific(DMASWA) OPEB Disclosures Total OPEB Liabilitv- DMASWA OPEB liability of $84,985 was measured as of June 30, 2025 (the measurement date), and was determined by an actuarial valuation as of June 30, 2024, which was rolled forward to June 30, 2025. The agency's portion is based on the number of employees in the plan. The Agency's portion was 1.80% as of June 30, 2025. Total OPEB Liability Total OPEB Liability beginning of year $ 80,613 Changes for the year: Service cost 3,362 Interest 3,590 Changes in experience - Other changes 8,289 Changes in assumptions (3,615) Benefit payments (7,254) Net Changes 4,372 Total OPEB Liability end of year $ 84,985 Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 10 — OTHER POST EMPLOYMENT BENEFITS(OPEB)(continued) Sensitivitv of the Citv'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 or 1% higher than the current discount rate. 1%Decrease(3..21%) Discount Rate (4..21%) 1% Increase(5.21%) Total OPEB Liability $ 79,031 $ 84,985 $ 91,527 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 or 1% higher than the current healthcare cost trend rates. Healthcare Cost 1% Decrease (5.00%) Trend Rate(6.00%) 1%Increase(7.00%) Total OPEB Liability $ 94,139 $ 84,985 $ 77,237 OPEB Expense and Deferred Outflows of Resources Related to OPEB - For the year ended June 30, 2025 the DMASWA recognized OPEB expense of $4,594. At June 30, 2025 the DMASWA reported deferred outflows of resources and deferred inflows of resources related to OPEB from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Changes in Experience $ 3,084 $ 6,862 Changes in Assumptions 6,342 36,920 Change in Proportion 29,745 22,308 $ 39,171 $ 66,090 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 2026 $ (5,276) 2027 (5,312) 2028 (5,774) 2029 (5,865) 2030 (4,100) Thereafter (592) $ (26,919) Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 $5,784,041 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 $ 12,575,535 $ 30,042,534 $ 42,618,069 Deferred Inflows 706,829 874,150 1,580,979 Deferred Outflows 5,494,009 10,209,009 15,703,018 Pension Expense(Decrease) 1,445,386 4,338,655 5,784,041 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.or�. 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. Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 - EMPLOYEE PENSION PLANS (continued) 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 it is 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. Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 their 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 Soard. 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 Soard. In fiscal year 2025, 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, 2025 were $3,173,660. The Dubuque Metropolitan Area Solid Waste Agency's total contributions to IPERS for the year ended June 30, 2025 were $79,161. City Specific IPERS Disclosures Net Pension Liabilities. Pension Ex�ense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2025, the City reported a liability of $12,575,535 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, 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, 2024, the City's collective proportion was 0.34054% which was an increase of 0.00019% from its proportion measured as of June 30, 2023. The City allocations to governmental and business-type activities according to the proportionate share of contributions in the prior year. Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) For the year ended June 30, 2025, the City recognized pension expense of$1,445,386. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Inflows Outflows af Resources of Resources Differences between expected and actual experience $ 1,000,648 $ 7,812 Changes of assumptions - 176 Net difference between projected and actual learnings on IPERS' investments 157,276 2 Changes in proportion and differences between City's contributions and City's proportionate share of contributions 1,162,425 698,839 City contributions subsequent to the measurement date 3,173,660 - Total $ 5,494,009 $ 706,829 The $3,173,660 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, 2026. Other 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 2026 $ (740,757) 2027 2,281,836 2028 274,982 2029 (207,205) 2030 4,664 $ 1,613,520 Sensitivity of the City's Proportionate Share of the Net Pension Liabilitv 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 7.00%, 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%o lower (6.00%) or 1.00% higher(8.00%)than the current rate. Page 141�'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) 1% Discount 1% Decrease Rate Increase (6.00%) (7.00%) (8.00%) City's proportionate share of the net pension liability(asset): $ 30,860,135 $ 12,575,535 $ (2,737,916) 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, 2025, the DMASWA reported a liability of $356,025 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, 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 Agency's share of contributions to the pension plan relative to the contributions of all IPERS participating employers. At June 30, 2024, the DMASWA's collective proportion was 0.00964% which was an increase of 0.001770% from its proportion measured as of June 30, 2023. For the year ended June 30, 2025, the Agency recognized a pension expense of $30,855. At June 30, 2025, the Agency reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Deferred Inflows Outflows of Resources of Resources Differences between expected and actual experience $ 28,327 $ 221 Changes of assumptions - - Net difference between projected and actual earnings on IPERS 4,454 - Changes in proportion and differences between Agency contributions and the Agency's proportionate share of contributions 82,893 28,186 Agency contributions subsequent to the measurement date 79,161 - Total $ 194,835 $ 28,407 Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) The $79,161 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 ending June 30, 2026 Other amounts reported as deferred outflows of resources and deferred inflows of resources related to pensions will be recognized in pension expense as follows: Year Ended June 30 Total 2026 $ (40,064) 2027 123,413 2028 14,872 2029 (11,207) 2030 251 $ 87,265 Sensitivity of the Agency's Proportionate Share of the Net Pension Liability 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 1.00% lower(6.00%) or 1.00% higher(8.00%)than the current rate. 1%Decrease Discount Rate 1% Increase (6.00)% (7.00)% (8.00)% Agency's proportionate share of the net pension liability(asset): $ 873,684 $ 356,025 $ (77,513) There were no non-employer contributing entities at IPERS. Actuarial Assumptions - actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 2.60%per annum 3.25 to 16.25%average, including inflation Rates of salary increase Rates vary by membership group 7.00%, compounded annually, net of Long-term Investment rate of return investment expense,including inflation 3.25%per annum based on 2.60%inflation Wage Growth and 0.65%real wage inflation Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) The actuarial assumptions used in the June 30, 2024 valuation were based on the results of the actuarial experience study covering the four-year period ending June 30, 2024. 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' investments was determined using a building- block method in which best-estimate ranges of expected future real rates (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 target allocation and best estimates of arithmetic real rates of return for each major asset class are summarized in the following table: Asset Long-Term Expected Asset Class Allocation Real Rate of Return Domestic equity 21.00 % 3.33 % International equity 13.00 4.99 Global smart beta equity 5.00 3.87 Core plus fixed income 25.00 2.84 Public credit 3.00 4.21 Cash 1.00 1.24 Private equity 17.00 7.68 Private real assets 9.00 4.62 Private credit 6.00 6.23 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 employee contributions will be made at the contractually required rate and that contributions from the Agency will be made at contractually required rates, actuarially determined. Based on those assumptions, IPERS' fiduciary net position was projected to be available to make all projected future benefit payments of current active and inactive employees. Therefore, the long-term expected rate of return on IPERS' investments was applied to all periods of projected benefit payments to determine the total pension liability. IPERS' Fiduciary Net Position - Detailed information about IPERS' fiduciary net position is available in the separately issued IPERS financial report which is available on the IPERS' website at www.ipers.or�. Pavables to IPERS - At June 30, 2025, the City reported no payables to the defined benefit pension plan for legally required employer contributions. There were no legally required employee contributions withheld from employee wages which had not yet been remitted to IPERS. Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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.or�. 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 14��i of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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%o 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, 2025. 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 22.66%for the year ended June 30, 2025. The City's contributions to MFPRSI for the year ended June 30, 2025 was $4,089,849. 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, 2025. Net Pension Liabilities, Pension Expense, and Deferred Outflows of Resources and Deferred Inflows of Resources Related to Pensions - At June 30, 2025, the City reported a liability of $30,042,534 for its proportionate share of the net pension liability. The net pension liability was measured as of June 30, 2024, 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, 2024, the City's proportion was .045465%o which was a decrease of 0.030276% from the proportions measured as of June 30, 2023. This is funded by governmental activities only. Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) For the year ended June 30, 2025, the City recognized pension expense of$4,338,655. At June 30, 2025, the City reported deferred outflows of resources and deferred inflows of resources related to pensions from the following sources: Deferred Outflows Deferred Inflows of Resources of Resources Net differences between expected and actual experience $ 3,167,968 $ - Changes of assumptions 108,443 - Net difference between projected and actual earnings on 2,010,738 - pension plan investments Changes in proportion and differences between City g32,011 874,150 contributions and proportionate share of contributions City contributions subsequent to the measurement date 4,089,849 - Total $ 10,209,009 $ 874,150 The $4,089,849 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, 2026. 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 2026 $ (989,965) 2027 4,532,955 2028 1,305,193 2029 358,459 2030 38,368 $ 5,245,010 Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) Actuarial Assumptions - The total pension liability in the June 30, 2024 actuarial valuation was determined using the following actuarial assumptions, applied to all periods included in the measurement: Rate of inflation 3.00%per annum Rates of salary increase 3.75 to 15.11%average, including inflation. 7.50%, net of pension plan investment Investment rate of return expense, including inflation The actuarial assumptions used in the June 30, 2024 valuation were based on the results of an actuarial experience study for the 10-year period ending June 30, 2023. 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 Expected Asset Class Real Rate of Return Broad Fixed Income 4.7 % Broad U.S. Equity 7.2 Global Equity 7.2 Broad Non-US Equity 7.3 Managed Futures 5.2 Core Real Estate 6.4 Opportunistic Real Estate 10.0 Global Infrastructure 6.9 Private Credit 9.0 Private Equity 9.9 Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 11 — EMPLOYEE PENSION PLANS(continued) Discount Rate - The discount rate used to measure the total pension liability was 7.50%. The projection of cash flows used to determine the discount rate assumed employee contributions will be made at the contractually required rates, actuarially determined. Based on those assumptions, MFPRSI fiduciary net position was projected to be available to make all projected future benefit payments to current active and inactive employees. Therefore, the long-term expected rate of return on MFPRSI investments was applied to all periods of projected benefit payments to determine the total pension liability. Sensitivity of 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. 1% Discount 1% Decrease Rate Increase 6.50% 7.50% 8.50% City's proportionate share of the net pension liability(asset): $ 52,269,745 $ 30,042,534 $ 11,644,512 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.or�. Payables to MFPRSI - At June 30, 2025, City of Dubuque, Iowa reported no payables to the defined benefit pension plan 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. Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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 and 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: 2025 Closure $ 4,994,155 Post-closure care 2,783,981 Totals $ 7,778,136 The total closure and post-closure care costs for the DMASWA have been estimated at $7,778,136 as of June 30, 2025, and the portion of the liability, that has been recognized is $4,727,938. 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 53% 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 statement of net position and total 5,877,833 as of June 30, 2025. The Agency will recognize the remaining estimated cost of closure and post-closure care of $3,050,198 over the estimated remaining life of 15 years as the remaining capacity is filled. Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 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, 2025 in which the City is a lessor: Governmental Activities: Lease Term Discount Original Balance as of Due Within Rent Interest Lease Type Beginning Ending Rate Balance June 30,2025 One Year Revenue Revenue Land 7/1/2021 7/1/2055 1.71%-4.42% $ 22,868,287 $ 18,810,186 $ 1,117,878 $ 1,224,431 $ 658,169 Building 7/1/2021 6/30/2056 3.34%-4.91% 10,232,491 8,775,352 369,896 512,409 314,028 Other 7/1/2021 11/30/2038 3.40 194,951 155,299 8,815 11,422 5,365 $ 33,295,729 $ 27,740,837 $ 1,496,589 $ 1,748,262 $ 977,562 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 $6,863,733. The City recognized revenue of $493,712 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 Endin� Total to be paid 2026 $ 677,836 2027 603,523 2028 234,399 2029 210,107 2030 210,107 Thereafter 4,907,711 $ 6,843,683 Business-Type Activities: Lease Term Balance as of Due Within Rent Interest Discount Original Lease Type Beginning Ending Rate Balance June 30,2024 One Year Revenue Revenue Land 7/1/2021 2/28/2038 2.34%-3.9% $ 889,248 $ 817,166 $ 95,757 $ 109,947 $ 30,263 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(Cornponent Unit): The Agency did not have any lessor agreements in place as of June 30, 2025. Page 14��3'of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 14 - SUBSEQUENT EVENTS On July 11, 2025, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Sewer Revenue Loan and Disbursement Agreement Anticipation Project Note, Series 2026 in an amount not to exceed $3,600,000. The purpose of the bonds is for the cost of planning, designing, and constructing improvements and extensions to the Municipal Sanitary Sewer System of the City. The interest rate is 0.00%. Note is payable to principal on July 11, 2028. On July 11, 2025, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Sewer Revenue Loan and Disbursement Agreement Anticipation Project Note, Series 2026 in an amount not to exceed $3,400,000. The purpose of the bonds is for the cost of planning, designing, and constructing improvements and extensions to the Municipal Sanitary Sewer System of the City. The interest rate is 0.00%. Note is payable to principal on July 11, 2028. On July 11, 2025, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Sewer Revenue Loan and Disbursement Agreement Anticipation Project Note, Series 2026 in an amount not to exceed $500,000. The purpose of the bonds is for the cost of planning, designing, and constructing improvements and extensions to the Municipal Sanitary Sewer System of the City. The interest rate is 0.00%. Note is payable to principal on July 11, 2028. On July 25, 2025, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Sewer Revenue Bonds, Series 2025 in an amount not to exceed $761,000. The purpose of the bonds is for the cost of constructing a certain water resource restoration project to the benefit of the Storm Water Management Utility System of the City. The interest rate is 0.0%. Annual payments begin on December 1, 2025, with the last payment on June 1, 2040. On September 12, 2025, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Water Revenue Bonds, Series 2025 in an amount not to exceed $1,941,000. The purpose of the bonds is for the cost of planning, designing, and constructing improvements and extensions to the Municipal Waterworks Utility System of the City. The interest rate is 0.0%. Annual payments begin on December 1, 2025, with the last payment on June 1, 2045. On February 20, 2026, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Water Revenue Bonds, Series 2026 in an amount not to exceed $2,330,000. The purpose of the bonds is for the cost of planning, designing, and constructing improvements and extensions to the Municipal Waterworks Utility System of the City. The interest rate is 2.90%. Annual payments begin on June 1, 2026, with the last payment on June 1, 2045. On February 20, 2026, the City entered into an agreement with the State of Iowa State Revolving Fund (SRF) for Sewer Revenue Bonds, Series 2026 in an amount not to exceed $14,643,000. The purpose of the bonds is for the cost of planning, designing, and constructing improvements and extensions to the Municipal Sanitary Sewer System of the City. The interest rate is 2.90%. Annual payments begin on June 1, 2026, with the last payment on June 1, 2046. 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: Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTES TO FINANCIAL STATEMENTS JUNE 30,2025 NOTE 15 - PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued) 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, 2026. GASB Statement No. 104, Disclosure of Certain Capital Assets will improve financial reporting by provided issuers of financial statements with essential information about certain types of capital assets in order to make informed decisions and assess accountability. Additionally, the disclosure requirements will improve consistency and comparability between governments. The statement will be effective for the City with its year ending June 30, 2026. 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 Soard 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. Citv 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, 2025, the City abated $17,551,607 of property tax under the urban renewal and economic development projects. Page 14��of 1594 Required Supplementary Information June 30, 2025 City of Dubuque, Iowa Page 1446 of 1594 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 30,2025 Bud�eted Amounts Final to Actual Actual Original Final Variance RECEIPTS Property tax $ 28,781,764 $ 27,540,529 $ 27,540,528 $ 1,241,236 Tax increment financing 17,551,607 17,907,459 17,907,459 (355,852) Other City tax 22,533,590 25,126,148 25,126,148 (2,592,558) Licenses and permits 5,023,423 2,375,397 2,290,822 2,732,601 Use of money and property 25,397,388 19,143,084 19,143,084 6,254,304 Intergovernmental 47,786,550 49,923,475 94,339,978 (46,553,428) Charges for services 54,427,716 58,638,885 58,215,895 (3,788,179) Special assessments 74,022 3,000 662,524 (588,502) Miscellaneous 14,220,367 9,795,759 13,187,997 1,032,370 Total Receipts 215,796,427 210,453,736 258,414,435 (42,618,008) EXPENDITURES Public safety 42,626,355 39,761,962 45,110,229 2,483,874 Public works 16,395,835 16,714,526 20,719,349 4,323,514 Health and social services 1,172,595 1,251,733 1,323,877 151,282 Culture and recreation 17,222,773 18,070,634 20,458,315 3,235,542 Community and economic development 21,502,546 17,708,651 19,476,722 (2,025,824) General government 15,161,161 15,744,283 18,513,110 3,351,949 Debt service 10,865,131 13,597,492 13,597,492 2,732,361 Capital projects 41,582,357 54,596,496 153,792,806 112,210,449 Business-type activities 64,570,928 86,156,076 140,770,948 76,200,020 Total Expenditures 231,099,681 263,601,853 433,762,848 202,663,167 EXCESS(DEFICIENCY)OF RECEIPTS OVER(UNDER)EXPENDITURES (15,303,254) (53,148,117) (175,348,413) 160,045,159 OTHER FINANCING SOURCES,NET 28,388,353 38,124,352 70,871,122 42,482,769 EXCESS DEFICIENCY OF RECEIPTS AND OTHER FINANCING SOURCES OVER (UNDER)EXPENDITURES AND OTHER FINANCING USES 13,085,099 (15,023,765) (104,477,291) 202,527,928 BALANCE,BEGINNING OF YEAR 151,961,543 72,261,524 152,461,021 151,961,543 BALANCE,ENDING OF YEAR S 165,046,642 S 57,237,759 $ 47,983,730 S 354,489,471 See Notes to Required Supplementary Information. Page 14��of 1594 CITY OF DUBUQUE, IOWA NOTE TO REQUIRED SUPPLEMENTARY INFORMATION - BUDGETARY REPORTING FOR THE YEAR ENDED JUNE 30, 2025 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, 2025, was amended two times during the year to allow the City to increase function expenditures by $170,160,995 primarily for the carry-forward of unfinished capital improvement projects. During the year ended June 30, 2025, 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 Funds Funds Modified Accrual/ Budgetary Accrual Accrual Modified Accrual Basis Adjustments Basis Accrual Basis Basis Total Receipts/Revenue $ 215,796,427 $ 683,487 $ 216,479,914 $ 156,168,660 $ 60,311,254 $ 216,479,914 Expenditures/Expenses 231,099,681 (27,887,728) 203,211,953 153,212,691 49,999,262 203,211,953 Deficiency of Receipts/Revenue Under Expenditures/Expenses (15,303,254) 28,571,215 13,267,961 2,955,969 10,311,992 13,267,961 Other Financing Sources 28,388,353 2,930,816 31,319,169 22,255,971 9,063,198 31,319,169 Net 13,085,099 31,502,031 44,587,130 25,211,940 19,375,190 44,587,130 Balance,Beginning 151,961,543 227,015,437 378,976,980 93,580,314 285,396,666 378,976,980 Balance,Ending $ 165,046,642 $ 258,517,468 $ 423,564,110 $ 118,792,254 $ 304,771,856 $ 423,564,110 Page 14�of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY IOWA PUBLIC EMPLOYEES'RETIREMENT SYSTEM LAST TEN FISCAL YEARS (IN THOUSANDS) Required Supplementary Information 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 City's proportion of the net pension liability 0.34054% 0.34035% 0.31846% 0.31474% 0.33061% 0.33194% 0.33329% 0.33490% 0.34275% 0.35135% (asset) City's proportionate share of the net pension liability $ 12,576 $ 15,705 $ 12,640 $ 441 $ 23,063 $ 19,350 $ 21,091 $ 22,309 $ 21,570 $ 17,358 City's covered payroll $ 32,028 $ 30,527 $ 26,888 $ 25,496 $ 26,048 $ 25,423 $ 25,024 $ 24,961 $ 24,597 $ 24,039 City's proportionate share of the net pension liability as a percentage of its covered payroll 39.27% 51.45% 47.01% 1.73% 88.54% 76.11% 84.28% 89.38% 87.69% 72.21% Plan fiduciary net position as a percentage of the total pension liability 95.27% 92.30% 91.40% 100.81% 82.90% 85.45% 83.62% 82.21% 81.82% 85.19% *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. Page 14��of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF THE CITY CONTRIBUTION IOWA PUPLIC EMPLOYEES RETIREMENT SYSTEM LAST 10 FISCAL YEARS (IN THOUSANDS) Required Supplementary Information 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Statutorily required $ 3,253 $ 3,018 $ 2,879 $ 2,535 $ 2,407 $ 2,460 $ 2,403 $ 2,235 $ 2,229 $ 2,196 contribution Contributions in relation to the statutorily required contribution $ (3,253) $ (3,018) $ (2,879) $ (2,535) $ (2,407) $ (2,460) $ (2,403) $ (2,235) $ (2,229) $ (2,196) Contribution deficiency _ _ _ _ _ _ _ _ _ _ (excess) City's covered payroll $ 34,458 $ 32,028 $ 30,527 $ 26,888 $ 25,496 $ 26,048 $ 25,423 $ 25,024 $ 24,961 $ 24,597 Contributions as a percentage of covered 9.44% 9.42% 9.43% 9.43% 9.44% 9.44% 9.45% 8.93% 8.93% 8.93% payroll Page 14�of 1594 CITY OF DUBUQUE, IOWA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION--PENSION LIABILITY IOWA PUBLIC EMPLOYEES'RETIREMENT SYSTEMS YEAR ENDED JUNE 30,2025 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%o. • 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%o. 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. Page 14�of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF THE CITY'S PROPORTIONATE SHARE OF NET PENSION LIABILITY MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA LAST TEN FISCAL YEARS (IN THOUSANDS) Required Supplementary Information 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 City's proportion of the net pension 4.54% 4.58% 4.32% 4.43% 4.73% 4.69% 4.86% 4.78% 4.95% 4.99% liability(asset) City's proportionate share of the net pension liability $30,043 $ 28,660 $ 24,281 $ 9,964 $ 37,737 $ 30,775 $ 28,960 $ 28,062 $ 30,971 $ 23,423 City's covered payroll $ 18,049 $ 16,513 $ 14,603 $ 14,418 $ 14,879 $ 14,203 $ 14,118 $ 13,552 $ 13,423 $ 13,052 City's proportionate share of the net pension liability as a percentage of its covered payroll 166.45% 173.56% 166.27% 69.11% 253.63% 216.68% 205.13°/o 207.07% 230.73% 179.46% Plan fiduciary net position as a percentage of the total pension liability 84.41% 86.53°/o 84.62% 93.62% 76.47% 79.94% 81.07°/o 80.60% 78.20% 83.04% *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. Page 14�of 1594 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 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 Statutorily required contribution $ 4,090 $ 3,922 $ 3,947 $ 3,823 $ 3,649 $ 3,632 $ 3,696 $ 3,626 $ 3,513 $ 3,727 Contributions in relation to the statutorily required contribution $ (4,090) $ (3,922) $ (3,947) $ (3,823) $ (3,649) $ (3,632) $ (3,696) $ (3,626) $ (3,513) $ (3,727) Contribution deficiency(excess) $ - $ - $ - $ - $ - $ - $ - $ - $ - $ - City's covered payroll $ 18,049 $ 17,067 $ 16,513 $ 14,603 $ 14,418 $ 14,879 $ 14,203 $ 14,118 $ 13,552 $ 13,423 Contributions as a percentage of 22.66% 22.98% 23.90% 26.18% 25.31% 24.41% 26.02% 25.68% 25.92% 27.77% covered payroll Page 14�53'of 1594 CITY OF DUBUQUE, IOWA NOTES TO REQUIRED SUPPLEMENTARY INFORMATION--PENSION LIABILITY MUNICIPAL FIRE AND POLICE RETIREMENT SYSTEM OF IOWA YEAR ENDED JUNE 30,2025 Chan�es of benefit terms: There were no significant changes of benefit terms. Chan�es of assum�tions 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. Page 14�of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF CHANGES IN TOTAL OPEB LIABILITY,RELATED RATIOS AND NOTES LAST SEVEN FISCAL YEARS 2025 2024 2023 2022 2021 2020 2019 Service Cost $ 165,984 $ 182,568 $ 214,747 $ 306,094 $ 303,146 $ 288,187 $ 296,597 Interest Cost 177,229 235,146 230,459 134,580 152,598 165,496 172,576 Changes in assumptions (178,454) (1,254,513) (18,042) (887,322) 254,038 (19,982) 85,951 Changes in experience - (296,783) - 281,561 13 (242,263) - Other Changes (8,288) (17,912) (5,704) 42,042 (11,228) (49,950) 2,582 Benefit payments (358,109) (325,967) (374,762) (360,953) (269,461) (380,158) (452,573) Net change in total OPEB (201,638) (1,477,461) 46,698 (483,998) 429,106 (238,670) 105,133 Liability Total OPEB liability 4,397,046 5,874,502 5,827,804 6,311,802 5,882,696 6,121,366 6,016,233 beginning of year Total OPEB liability end of year $ 4,195,408 $ 4,397,046 $ 5,874,502 $ 5,827,804 $ 6,311,802 $ 5,882,696 $ 6,121,366 Covered-employee payroll $ 44,195,413 $44,625,352 $ 37,635,156 $42,133,307 $ 41,593,187 $ 34,543,167 $39,626,000 Total OPEB liability as a percentage ofcovered- employee payroll 9.49% 9.85% 15.61% 13.83% 15.18% 17.03% 15.45% Notes to Schedule of Changes in the Total OPEB Liability and Related Ratios No assets are accumulated in a trust that meets the criteria in paragraph 4 of GASB Statement 75. Changes in benefit terms: There were no significant changes in benefit terms. Change in assumptions: Changes in assumptions and other inputs reflect the effects of changes in the discount rate, health care trend rates and other changes. 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. Page 14�5�of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1456 of 1594 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. Construction Escrow Fund - This fund is used to account for developer contributions towards public improvements and ensure the funds are securely set aside and properly allocated for their intended purposes. Page 1457 of 1594 NONMAJOR GOVERNMENTAL FUNDS CAPITAL PROJ ECTS FU N DS 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 1458 of 1594 CITY OF DUBUQUE, IOWA COMBINING BALANCE SHEET NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2025 Special Revenue Funds Road Section Use VIII Employee Special Tax Housing Benefits Assessments ASSETS Cash and investments $ 8,853,717 $ 841,310 $ - $ - Receivables Property Tax Delinquent - - 17,259 - Succeedingyear - - 3,027,607 - Accountsand other - - - - Special assessments - - - 556,394 Accrued interest - 12,348 - - Notes - - - - Intergovernmental 651,829 - - - Inventories 432,174 - - - Prepaid items 87,192 14,823 - - Restricted cash and investments - 491,192 - - Total Assets 10,024,912 1,359,673 3,044,866 556,394 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 431,008 4,143 1,559 - Accrued payroll 61,010 23,156 - - Intergovernmentalpayable - - - - Due to other funds - - - 25 Total Liabilities 492,018 27,299 1,559 25 DEFERRED INFLOWS OF RESOURCES Unavailable revenues Succeeding year property tax - - 3,027,607 - Special assessments - - - 545,355 Grants - - - - Other - - 2,516 - Total Deferred Inflows of Resources - - 3,030,123 545,355 FUND BALANCES Nonspendable: Inventory 432,174 - - - Prepaid items 87,192 14,823 - - Restricted: Endowments - - - - Library - - - - Police - - - - Veterans - - - - Capital improvements 9,013,528 - - - Franchise agreement - - - - Special assessments - - - 11,014 lowa Finance Authority Trust - - - - Community programs - 1,317,551 - - Employee benefits - - 13,184 - Committed,capital improvements - - - - Unassigned Fund Balances - - - - Total Fund Balances 9,532,894 1,332,374 13,184 11,014 Total Liabilities,Deferred Inflows of Resources and Fund Balances $ 10,024,912 $ 1,359,673 $ 3,044,866 $ 556,394 Page 14��of 1594 EXHIBIT A-1 Special Revenue Funds Capital Projects Funds Library Police Expendable Expendable [FA Cable Gifts Gifts Veteran's Housing Construction Airport General TV Trust Trust Memorial Trust Escrow Fund Construction Construction $ 13,826 $ 1,161,739 $ 3,257 $ 232,018 $ 784,784 $ 1 $ - $ - 81,598 - - - - - - - 2,587 12,293 34 - - - 2,933 1,253 - - - - 1,190,195 - - 20,688 - - - - 8,450 - 3,821,318 1,706,309 - - - - 217,500 - - 317,017 42,096 - - - - - - 1,870 - - - - - - 1,873,651 12,201,732 140,107 1,174,032 3,291 232,018 2,200,929 1 5,697,902 14,248,869 9,410 1,303 - - 153,122 - 773,522 1,486,736 9,709 411 - - - - - 8,295 - 121 - - - - - 810 - - - - - - 3,445,208 1,591,023 19,119 1,835 - - 153,122 - 4,218,730 3,086,864 - - - - - - 3,821,318 1,706,309 - - - - - - 3,821,318 1,706,309 - - - - 217,500 - - 317,017 42,096 - - - - - - 1,870 - 1,172,197 - - - - - - - - 3,291 - - - - - - - - 232,018 - - - - - - - - - 1 - 9,136,809 78,892 - - - - - - - - - - - 1,830,307 - - - - - - - - - (2,342,146) - 120,988 1,172,197 3,291 232,018 2,047,807 1 (2,342,146) 9,455,696 $ 140,107 $ 1,174,032 $ 3,291 $ 232,018 $ 2,200,929 $ 1 $ 5,697,902 $ 14,248,869 Page 14�of 1594 CITY OF DUBUQUE, IOWA COMBINING BALANCE SHEET EXHIBIT A-1(continued) NONMAJOR GOVERNMENTAL FUNDS JUNE 30,2025 Capital Projects Funds Permanent Funds Ella Total Sales Lyons Library Nonmajor Tax Street Peony Gifts Governmental Construction Construction Trail Trust Trust Funds ASSETS Cash and investments $ 5,185,050 $ 6,886,031 $ - $ - $ 23,961,733 Receivables Property Tax Delinquent - - - - 17,259 Succeedingyear - - - - 3,027,607 Accounts and other - 191,175 - - 272,773 Special assessments - - - - 556,394 Accrued interest - 72,863 839 210 105,360 Notes - - - - 1,210,883 Intergovernmental 254,298 381,447 - - 6,823,651 Inventories - - - - 966,691 Prepaid items - - - - 145,981 Restricted cash and investments 5,868,974 - 149,456 19,844 20,604,849 Total Assets 11,308,322 7,531,516 150,295 20,054 57,693,181 LIABILITIES,DEFERRED INFLOWS OF RESOURCES AND FUND BALANCES LIABILITIES Accounts payable 536,245 490,477 - - 3,887,525 Accrued payroll 342 9,944 - - 112,867 Intergovernmental payable - - - - 931 Due to other funds - - - - 5,036,256 Total Liabilities 536,587 500,421 - - 9,037,579 DEFERRED INFLOWS OF RESOURCES Unavailable revenues Succeeding year property tax - - - - 3,027,607 Specia]assessments - - - - 545,355 Grants - - - - 5,527,627 Other - - - - 2,516 Total Deferred Inflows of Resources - - - - 9,103,105 FUND BALANCES Nonspendable: Inventory - - - - 966,691 Prepaid items - - - - 145,981 Restricted: Endowments - - 150,295 20,054 170,349 Library - - - - 1,172,197 Police - - - - 3,291 Veterans - - - - 232,018 Capital improvements 7,906,057 5,782,987 - - 31,839,382 Franchise agreement - - - - 78,892 Specia]assessments - - - - 11,014 Iowa Finance Authority Trust - - - - 1,830,307 Community programs - - - - 1,317,551 Employee benefits - - - - 13,184 Committed,capital improvements 2,865,678 1,248,108 - - 4,113,786 Unassigned Fund Balances - - - - (2,342,146� Total Fund Balances 10,771,735 7,031,095 150,295 20,054 39,552,497 Total Liabilities,Deferred Inflows of Resources and Fund Balances $ 11,308,322 $ 7,531,516 $ 150,295 $ 20,054 $ 57,693,181 Page 14�of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1462 of 1594 EXHIBIT A-2 Special Revenue Funds Road Section Use VIII Employee Special Tax Housing Benefits Assessments REVENUES Taxes $ - $ - $ 2,102,292 $ - Special assessments - - - 39,769 Intergovernmental 8,446,777 8,851,212 - - Charges for services - - - - Investment earnings - 5,734 - 1,132 Contributions - - - - Miscellaneous 85,584 112,781 - - Total Revenues 8,532,361 8,969,727 2,102,292 40,901 EXPENDITURES Governmental activities Current Public safety - - - - Public works 6,682,311 - - - Culture and recreation - - - - Community and economic development - 8,819,129 - - General government 6,885 - 173 - Debt service Principal - 34,387 - - Interest and fiscal charges - - - - Capital projects 319,529 1,532 - - Total Expenditures 7,008,725 8,855,048 173 - EXCESS(DEFICIENCY)OF REVENUES OVER (UNDER)EXPENDITURES 1,523,636 114,679 2,102,119 40,901 OTHER FINANCING SOURCES(USES) Issuance of debt - 100,772 - - Premium on bonds - - - - Transfers in 3,314 152,744 - - Transfers out (423,548) - (2,140,941) (72,287) Sales of capital assets 7,898 - - - Total Other Financing Sources(Uses) (412,336) 253,516 (2,140,941) (72,287) NET CHANGE IN FUND BALANCES 1,111,300 368,195 (38,822) (31,386) FUND BALANCES,BEGINNING 8,421,594 964,179 52,006 42,400 FUND BALANCES,ENDING $ 9,532,894 $ 1,332,374 $ 13,184 $ 11,014 Page 14�'of 1594 CITY OF DUBUQUE,IOWA COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2025 Special Revenue Funds Capital Projects Funds Library Police Expendable Expendable IFA Construction Cable Gifts Gifts Veteran's Housing Escrow Airport General TV Trust Trust Memorial Trust Fund Construction Construction $ 358,876 $ - $ - $ - $ - $ - $ - $ - - - - - 173,262 - 5,797,780 197,249 - 28,149 - - - - 75,771 - 9,581 52,001 358 9,383 - - 38,558 223,984 - - - 17,485 5,000 - - - 690 38,996 - - 518 - - 444,308 369,147 119,146 358 26,868 178,780 - 5,912,109 865,541 - - 6,044 - - - - - - - - - 794 - 2,636 322,465 - 60,333 - 7,058 - - - - 686,843 - - - - - - 3,883 - - - - - - 2,423 43,928 - - - - 241,340 400,188 6,454,761 8,517,975 686,843 60,333 6,044 7,058 242,134 400,188 6,459,820 8,888,251 (317,696) 58,813 (5,686) 19,810 (63,354) (400,188) (547,711) (8,022,710) - - - - - - 654,198 14,250,000 - - - - - - 41,560 32,024 - - - - 62,583 - 345,618 1,498,497 - - - - - - (181,365) (609) - - - - 62,583 - 860,011 15,779,912 (317,696) 58,813 (5,686) 19,810 (771) (400,188) 312,300 7,757,202 438,684 1,113,384 8,977 212,208 2,048,578 400,189 (2,654,446) 1,698,494 $ 120,988 $ 1,172,197 $ 3,291 $ 232,018 $ 2,047,807 $ 1 $ (2,342,146� $ 9,455,696 Page 14��of 1594 CITY OF DUBUQUE,IOWA EXHIBIT A-2 COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES (continued) NONMAJOR GOVERNMENTAL FUNDS FOR THE YEAR ENDED JUNE 30,2025 Capital Projects Funds Permanent Funds Ella Total Sales Lyons Library Nonmajor Tax Street Peony Gifts Governmental Construction Construction Trail Trust Trust Funds REVENUES Taxes $ 2,517,724 $ 3,776,586 $ - $ - $ 8,755,478 Special assessments - - - - 39,769 Intergovernmental 196,119 1,248,546 - - 24,910,945 Charges for services - 13,786 - - 117,706 Investment earnings 271,851 339,536 4,509 891 957,518 Contributions - 726,453 - - 748,938 Miscellaneous 147,513 74,687 - 10 905,087 Total Revenues 3,133,207 6,179,594 4,509 901 36,435,441 EXPENDITURES Governmental activities Current Public safety - - - - 6,044 Public works 384,109 600,155 - - 7,992,470 Culture and recreation - - 4,110 - 71,501 Community and economic development - - - - 8,819,129 General government 366,629 22,805 - - 1,087,218 Debt service Principal - - - - 34,387 Interest and fiscal charges 26,646 - - - 72,997 Capital projects 4,935,161 4,022,380 - - 24,892,866 Total Expenditures 5,712,545 4,645,340 4,110 - 42,976,612 EXCESS(DEFICIENCY)OF REVENUES OVER(UNDER) EXPENDITURES (2,579,338) 1,534,254 399 901 (6,541,171) OTHER FINANCING SOURCES (USES) Issuance of debt 7,690,802 - - - 22,695,772 Premium on bonds 260,851 - - - 334,435 Transfers in 2,481,744 384,983 - - 4,929,483 Transfers out (2,049,490) (2,135,876) - - (7,004,116) Sales of capital assets 22,579 - - - 30,477 Total Other Financing g,406,486 (1,750,893) - - 20,986,051 Sources(Uses) NET CHANGE IN FUND 5,827,148 (216,639) 399 901 14,444,880 BALANCES FUND BALANCES,BEGINNING 4,944,587 7,247,734 149,896 19,153 25,107,617 FUND BALANCES,ENDING $ 10,771,735 $ 7,031,095 $ 150,295 $ 20,054 $ 39,552,497 Page 14��of 1594 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 1466 of 1594 CITY OF DUBUQUE,IOWA EXHIBIT B-1 COMBINING STATEMENT OF NET POSITION NONMAJOR ENTERPRISE FUNDS JUNE 30,2025 Total Other Refuse Transit Enterprise Collection System Salt Funds ASSETS CURRENT ASSETS Cash and investments $ - $ 6,752,625 $ 66,569 $ 6,819,194 Receivables Accounts 586,205 4,295 - 590,500 Accrued interest 1,499 87,282 704 89,485 Intergovernmental - 273,785 - 273,785 Special assessments 39,912 - - 39,912 Prepaid items 30,179 45,253 - 75,432 Total Current Assets 657,795 7,163,240 67,273 7,888,308 NONCURRENT ASSETS Restricted cash and investments 192,550 227,628 - 420,178 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 3,657,974 9,159,516 36,342 12,853,832 Accumulated Depreciation (2,385,250) (6,778,980) (315,775) (9,480,005) Net Capital Assets 1,272,724 14,916,118 582,337 16,771,179 Total Noncurrent Assets 1,465,274 15,143,746 582,337 17,191,357 Total Assets 2,123,069 22,306,986 649,610 25,079,665 DEFERRED OUTFLOWS OF RESOURCES Pension related deferred outflows 242,998 328,595 - 571,593 OPEB related deferred outflow 28,488 53,019 - 81,507 Total Deferred Outflows of Resources 271,486 381,614 - 653,100 LIABILITIES CURRENT LIABILITIES Accounts payable 44,381 24,395 6,900 75,676 Accrued payroll 50,269 64,005 - 114,274 Due to other funds 187,337 - - 187,337 General obligation bonds payable 6,700 45,759 - 52,459 Accrued compensated absences-current 21,994 9,981 - 31,975 Accrued interest payable 5,109 1,705 - 6,814 Net OPEB liability 11,897 13,857 - 25,754 Total Current Liabilities 327,687 159,702 6,900 494,289 NONCURRENT LIABILITIES General obligation bonds payable 1,241,489 862,746 - 2,104,235 Intergovernmental payable 591 - - 591 Accrued compensated absences 268,037 121,638 - 389,675 Net pension liability 542,623 777,746 - 1,320,369 Total OPEB liability 127,475 148,479 - 275,954 Total Noncurrent Liabilities 2,180,215 1,910,609 - 4,090,824 Total Liabilities 2,507,902 2,070,3ll 6,900 4,585,113 DEFERRED INFLOWS OF RESOURCES Pension related deferred inflows 50,081 17,571 - 67,652 OPEB related deferred inflows 109,996 90,800 - 200,796 Total Deferred Inflows of Resources 160,077 108,371 - 268,448 NET POSITION Net investment in capital assets 217,085 14,235,241 582,337 15,034,663 Unrestricted (490,509) 6,274,677 60,373 5,844,541 Total Net Position $ (273,424) $ 20,509,918 $ 642,710 $ 20,879,204 Page 14�of 1594 CITY OF DUBUQUE,IOWA EXHIBIT B-2 COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30,2025 Total Other Refuse Transit Enterprise Collection System Salt Funds OPERATING REVENUES Charges for sales and services $ 5,373,375 $ 475,026 $ 103,328 $ 5,951,729 Other 465 4,796 - 5,261 Total Operating Revenues 5,373,840 479,822 103,328 5,956,990 OPERATING EXPENSES Employee expense 3,789,757 2,779,704 - 6,569,461 Utilities 20,406 114,741 - 135,147 Repairs and maintenance 677,071 674,548 2,119 1,353,738 Supplies and services 1,272,426 444,388 127,130 1,843,944 Insurance 44,812 134,370 - 179,182 Depreciation 253,258 821,264 27,639 1,102,161 Total Operating Expenses 6,057,730 4,969,015 156,888 11,183,633 OPERATING INCOME(LOSS) (683,890) (4,489,193) (53,560) (5,226,643) NONOPERATING REVENUES(EXPENSES) Intergovernmental - 2,033,332 - 2,033,332 Investment earnings 53,981 39,538 3,189 96,708 Interest expense (5,005) (20,921) - (25,926) Gain on disposal of assets 2,050 1,380 - 3,430 Net Nonoperating Revenues(Expenses) 51,026 2,053,329 3,189 2,107,544 INCOME(LOSS)BEFORE TRANSFERS (632,864) (2,435,864) (50,371) (3,119,099) Transfers In 105,744 2,480,982 - 2,586,726 Transfers Out - (276,900) - (276,900) CHANGE IN NET POSITION (527,120) (231,782) (50,371) (809,273) NET POSITION,BEGINNING,as previously 309,074 20,775,355 693,081 21,777,510 presented Restatements (55,378) (33,655) - (89,033) NET POSITION,BEGINNING,as restated 253,696 20,741,700 693,081 21,688,477 NET POSITION,ENDING $ (273,424) $ 20,509,918 $ 642,710 $ 20,879,204 Page 14�of 1594 CITY OF DUBUQUE,IOWA COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30,2025 Total Other Refuse Transit Enterprise Collection System Salt Funds CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ 5,407,408 $ 480,996 $ 118,094 $ 6,006,498 Cash payments to suppliers for goods and services (2,431,248) (1,385,363) (122,349) (3,938,960) Cash payments to employees for services (3,821,508) (2,849,899) - (6,671,407) Other operating receipts 465 4,796 - 5,261 NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES (844,883) (3,749,470) (4,255) (4,598,608) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 105,744 2,480,982 - 2,586,726 Transfers to other funds - (276,900) - (276,900) Proceeds of interfund balances 187,337 - - 187,337 Intergovernmental grant proceeds - 3,673,615 - 3,673,615 NET CASH PROVIDED BY NONCAPITAL FINANCING ACTIVITIES 293,081 5,877,697 - 6,170,778 CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets 2,050 1,380 - 3,430 Acquisition and construction of capital assets (996,972) (679,818) - (1,676,790) Proceeds from issuance of debt 1,212,422 117,331 - 1,329,753 Principal Paid (5,591) (163,857) - (169,448) Interest paid (2,300) (21,592) - (23,892) NET CASH PROVIDED BY(USED FOR)CAPITAL AND RELATED FINANCING ACTIVITIES 209,609 (746,556) - (536,947) CASH FLOWS FROM INVESTING ACTIVITIES Interest received 63,785 30,108 3,286 97,179 NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (278,408) 1,411,779 (969) 1,132,402 CASH AND CASH EQUIVALENTS,BEGINNING 470,958 5,568,474 67,538 6,106,970 CASH AND CASH EQUIVALENTS,ENDING $ 192,550 $ 6,980,253 $ 66,569 $ 7,239,372 Page 14�of 1594 CITY OF DUBUQUE,IOWA EXHIBIT B-3 COMBINING STATEMENT OF CASH FLOWS NONMAJOR ENTERPRISE FUNDS FOR THE YEAR ENDED JUNE 30,2025 Business-type Activities-Enterprise Funds Total Other Refuse Transit Enterprise Collection System Salt Funds RECONCILIATION OF OPERATING(LOSS)INCOME TO NET CASH(USED FOR)PROVIDED BY OPERATING ACTIVITIES Operating(loss)income $ (683,890) $ (4,489,193) $ (53,560) $ (5,226,643) Adjustments to reconcile operating income(loss)to net cash provided by(used for)operating activities Depreciation 253,258 821,264 27,639 1,102,161 Change in assets and liabilities (Increase)Decrease in receivables 34,033 5,970 14,766 54,769 (Increase)decrease in inventories and prepaid items (8,840) (27,910) - (36,750) Increase(decrease)in accounts payable (407,693) 10,594 6,900 (390,199) (Decrease)increase in accrued liabilities 58,416 19,962 - 78,378 Increase in net pension liability (177,188) (168,613) - (345,801) (Increase)in deferred outflows-pension related 88,128 97,532 - 185,660 (Increase)in deferred outflows-OPEB related 7,154 11,201 - 18,355 (Decrease)in deferred inflows-pension related 9,143 (15,702) - (6,559) (Decrease)increase in deferred inflows-OPEB related (2,880) (1,762) - (4,642) (Decrease)in total OPEB liability (14,524) (12,813) - (27,337) Total Adjustments (160,993) 739,723 49,305 628,035 NET CASH(USED FOR)PROVIDED BY OPERATING ACTIVITIES $ (844,883) $ (3,749,470) $ (4,255) $ (4,598,608) NONCASH CAPITAL AND RELATED FINANCING ACTIVITIES Amortization of bond discount(premium) $ 186 $ 577 $ - $ 763 Page 14�of 1594 I NTERNAL SERVICE FU N DS 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 1471 of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1472 of 1594 CITY OF DUBUQUE,IOWA COMBINING STATEMENT OF NET POSITION INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30,2025 General Garage Stores/ Service Service Printing ASSETS CURRENT ASSETS Cash and investments $ - $ - $ - Receivables Accounts - - 471 Accruedinterest - - - Inventories - 222,802 15,217 Prepaid items - 25,026 - Total Current Assets - 247,828 15,688 NONCURRENT ASSETS Capital assets Machinery and equipment - 171,014 - Construction in Progress - 15,891 - Accumulated Depreciation - (156,008) - Net Capital Assets - 30,897 - Total Assets - 278,725 15,688 DEFERRED OUTFLOWS OF RESOURCES Pension related deferred outflows - 121,177 - LIABILITIES CURRENT LIABILITIES Accounts payable - 245,146 16,622 Accrued payroll 12,913 22,479 - Due to other funds - - 5,000 Total Current Liabilities 12,913 267,625 21,622 NONCURRENT LIABILITIES Net pension liability - 257,456 - Total Liabilities 12,913 525,081 21,622 DEFERRED INFLOWS OF RESOURCES Pension related deferred inflows 345,213 64,791 - Total Deferred Inflows of Resources 345,213 64,791 - NET POSITION(DEFICIT) Unrestricted (358,126) (189,970) (5,934) Total Net Position(Deficit) $ (358,126) $ (189,970) $ (5,934) Page 14�'of 1594 EXHIBIT C-1 Health Workers' Insurance Compensation Reserve Reserve Total $ 7,171,185 $ 846,687 $ 8,017,872 214,874 - 215,345 75,881 8,959 84,840 - - 238,019 - - 25,026 7,461,940 855,646 8,581,102 - - 171,014 - - 15,891 - - (156,008) - - 30,897 7,461,940 855,646 8,611,999 - - 121,177 936,469 712,122 1,910,359 - - 35,392 - - 5,000 936,469 712,122 1,950,751 - - 257,456 936,469 712,122 2,208,207 - - 410,004 - - 410,004 6,525,471 143,524 6,114,965 $ 6,525,471 $ 143,524 $ 6,114,965 Page 14�of 1594 CITY OF DUBUQUE,IOWA COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION(DEFICITS) INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30,2025 General Garage Stores/ Service Service Printing OPERATING REVENUES Charges for sales and services $ - $ 3,100,224 $ 5,804 Other - 218,611 - Total Operating Revenues - 3,318,835 5,804 OPERATING EXPENSES Employee expense 338,181 976,384 - Utilities - 28,693 8,195 Repairs and maintenance - 63,645 - Supplies and services - 2,552,733 36,309 Insurance - 8,946 - Depreciation - 20,728 - Total Operating Expenses 338,181 3,651,129 44,504 OPERATING INCOME (LOSS) (338,181) (332,294) (38,700) NONOPERATING REVENUES(EXPENSES) Investment earnings - - - Gain on disposal of assets - 8,283 - Net Nonoperating Revenues(Expenses) - 8,283 - INCOME(LOSS) BEFORE TRANSFERS (338,181) (324,011) (38,700) Transfers In 187,364 672,696 33,339 CHANGE IN NET POSITION (150,817) 348,685 (5,361) NET POSITION (DEFICIT), BEGINNING (207,309) (538,655) (573) NET POSITION (DEFICIT), ENDING $ (358,126) $ (189,970) $ (5,934) Page 14��of 1594 EXHIBIT C-2 Health Workers' Insurance Compensation Reserve Reserve Total $ 11,654,598 $ 729,479 $ 15,490,105 - - 218,611 11,654,598 729,479 15,708,716 - - 1,314,565 - - 36,888 - - 63,645 11,254,076 3,250 13,846,368 - 672,850 681,796 - - 20,728 11,254,076 676,100 15,963,990 400,522 53,379 (255,274) 243,273 29,873 273,146 - - 8,283 243,273 29,873 281,429 643,795 83,252 26,155 - - 893,399 643,795 83,252 919,554 5,881,676 60,272 5,195,411 $ 6,525,471 $ 143,524 $ 6,114,965 Page 14�of 1594 CITY OF DUBUQUE,IOWA COMBINING STATEMENT OF CASH FLOWS INTERNAL SERVICE FUNDS FOR THE YEAR ENDED JUNE 30,2025 General Garage Stores/ Service Service Printing CASH FLOWS FROM OPERATING ACTIVITIES Cash received from customers $ - $ 3,100,552 $ 8,717 Cash payments to suppliers for goods and services - (2,825,916) (16,481) Cash payments to employees for services (488,756) (1,024,437) - Other operating receipts - 218,611 - NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES (488,756) (531,190) (7,764) CASH FLOWS FROM NONCAPITAL FINANCING ACTIVITIES Transfers from other funds 187,364 672,696 33,339 Proceeds from interfund balances - (133,898) (25,575) NET CASH PROVIDED BY(USED FOR)NONCAPITAL FINANCWG 1g��364 538,798 7,764 ACTIVITIES CASH FLOWS FROM CAPITAL AND RELATED FINANCING ACTIVITIES Proceeds from sale of capital assets - 8,283 - Acquisition and construction of capital assets - (15,891) - NET CASH PROVIDED BY(USED FOR)CAPITAL AND RELATED FINANCING ACTIVITIES - (7,608) - CASH FLOWS FROM INVESTING ACTIVITIES Interest received - - - NET INCREASE(DECREASE)IN CASH AND CASH EQUIVALENTS (301,392) - - CASH AND CASH EQUIVALENTS, BEGINNING 301,392 - - CASH AND CASH EQUIVALENTS, ENDING $ - $ - $ - RECONCILIATION OF OPERATING INCOME(LOSS)TO NET CASH PROVIDED BY(USED FOR)OPERATING ACTIVITIES Operating loss $ (338,181) $ (332,294) $ (38,700) Adjustments to reconcile operating income to net cash provided by(used for)operating activities Depreciation - 20,728 - Change in assets and liabilities (Increase)Decrease in receivables - 328 2,913 (Increase)Decrease in inventories and prepaid items - (54,757) 11,401 Increase(Decrease)in accounts payable - (117,142) 16,622 Change in net pension liability - (150,652) - Decrease(increase)in deferred outflows-pension related - 50,204 - (Decrease)in deferred inflows-pension related (151,364) 51,501 - Increase(decrease)in accrued liabilities 789 894 - Total Adjustments (150,575) (198,896) 30,936 NET CASH PROVIDED BY(USED FOR)OPERATWG ACTIVITIES $ (488,756� $ (531,190� $ (7,764� Page 14�of 1594 EXHIBIT C-3 Health Workers' Insurance Compensation Reserve Reserve Total $ 12,152,866 $ 729,479 $ 15,991,614 (11,938,070) (1,004,468) (15,784,935) - - (1,513,193) - - 218,611 214,796 (274,989) (1,087,903) 893,399 - - (159,473) - - 733,926 - - 8,283 - - (15,891) - - (7,608) 246,991 33,820 280,811 461,787 (241,169) (80,774) 6,709,398 1,087,856 8,098,646 $ 7,171,185 $ 846,687 $ 8,017,872 $ 400,522 $ 53,379 $ (255,274) - - 20,728 498,268 - 501,509 1,549 - (41,807) (685,543) (328,368) (1,114,431) - - (150,652) - - 50,204 - - (99,863) - - 1,683 (185,726) (328,368) (832,629) $ 214.796 S (274,989) $ (1,087,9031 Page 14�of 1594 Statistical Section (Unaudited) June 30, 2025 City of Dubuque, Iowa Page 1479 of 1594 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 Pa e 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. 15s Revenue Capacity These schedules contain information to help the reader assess the City's most significant local revenue source, the property tax. 163 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. 16� 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. 1�g 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. 1g1 Sources: Unless otherwise noted, the information in these schedules is derived from the annual comprehensive financial reports for the relevant year. Page 14�of 1594 CITY OF DUBUQUE,IOWA NET POSITION BY COMPONENT LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Fiscal- 2016 2017 2018 2019 2020 Governmental activities Net investment in capital assets $ 369,244,904 $ 375,578,520 $ 379,040,697 $ 385,005,220 $ 387,344,725 Restricted 21,473,309 23,955,112 27,269,997 28,321,603 26,501,434 Unrestricted (47,166,839) (43,921,629) (41,853,174) (36,682,314) (35,985,750) Total governmental activities net position $ 343,551,374 $ 355,612,003 $ 364,457,520 $ 376,644,509 $ 377,860,409 Business-type activities Net investment in capital assets $ 161,326,743 $ 164,448,390 $ 168,205,523 $ 179,561,228 $ 191,757,112 Restricted 4,254,907 3,796,752 3,053,616 3,131,716 3,187,364 Unrestricted (7,339,071) 3,876,760 10,696,792 12,617,567 17,437,890 Total business-type activities $ 158,242,579 $ 172,121,902 $ 181,955,931 $ 195,310,511 $ 212,382,366 net position Primary government Net investment in capital assets $ 530,571,647 $ 540,026,910 $ 547,246,220 $ 564,566,448 $ 579,101,837 Restricted 25,728,216 27,751,864 30,323,613 31,453,319 29,688,798 Unrestricted (54,505,910) (40,044,869) (31,156,382) (24,064,747) (18,547,860) Total primary government net position $ 501,793,953 $ 527,733,905 $ 546,413,451 $ 571,955,020 $ 590,242,775 Page 14�of 1594 TABLEI Year 2021 2022 2023 2024 2025 $ 387,768,367 $ 386,739,779 $ 400,952,682 $ 405,878,371 $ 415,810,303 34,083,157 35,584,078 47,002,287 37,049,245 49,828,073 (30,327,770) (12,530,829) (11,293,269) (4,716,305) 2,124,231 $ 391,523,754 $ 409,793,028 $ 436,661,700 $ 438,211,311 $ 467,762,607 $ 207,159,931 $ 219,652,664 $ 231,850,352 $ 240,084,787 $ 260,466,624 2,942,894 3,124,213 2,828,344 3,190,479 3,178,805 27,491,072 32,915,285 37,930,508 46,231,811 41,682,505 $ 237,593,897 $ 255,692,162 $ 272,609,204 $ 289,507,077 $ 305,327,934 $ 594,928,298 $ 606,392,443 $ 632,803,034 $ 645,963,158 $ 676,276,927 37,026,051 38,708,291 49,830,631 40,239,724 53,006,878 (2,836,698) 20,384,456 26,637,239 38,515,506 43,806,736 $ 629,117,651 $ 665,485,190 $ 709,270,904 $ 724,718,388 $ 773,090,541 Page 14�of 1594 TABLE 2 Fiscal- 2016 2017 2018 2019 Expenses Governmental activities: Public safety $ 26,851,624 $ 30,020,343 $ 29,482,962 $ 29,637,417 Public works 24,323,023 19,608,137 20,393,871 24,835,035 Health and social services 967,936 815,251 883,217 1,442,658 Culture and recreation 12,993,331 13,653,509 14,323,710 12,916,646 Community and economic development 15,464,781 18,096,170 21,109,384 15,837,039 General government 4,101,423 8,982,668 7,573,081 5,944,116 Interest on long-term debt 2,963,134 3,467,685 3,129,502 3,387,730 Total governmental activities expenses $ 87,665,252 $ 94,643,763 $ 96,895,727 $ 94,000,641 Business-type activities: Sewage disposal works $ 12,817,669 $ 11,326,661 $ 11,614,347 $ 12,177,352 Water utility 6,483,229 6,807,217 7,109,421 7,892,423 Stormwater utility 5,021,523 6,234,015 6,159,039 7,025,525 Parking facilities 3,420,296 3,547,856 2,866,510 2,845,911 America's River Project 21,521 22,893 10,143 19,874 Refuse collection 3,968,761 4,208,268 4,244,551 4,215,881 Transit system 4,274,967 4,237,054 4,722,979 4,533,060 Salt 181,617 45,039 119,421 182,092 Total business-type activities expenses 36,189,583 36,429,003 36,846,411 38,892,118 Total primary government expenses $ 123,854,835 $ 131,072,766 $ 133,742,138 $ 132,892,759 Program Revenues Governmental activities: Charges for services Public safety $ 2,713,065 $ 2,930,068 $ 2,600,751 $ 2,535,504 Public works 5,765,075 5,681,107 6,654,101 7,327,692 Culture and recreation 2,723,270 2,767,636 2,874,493 2,459,644 Other activities 3,887,056 3,541,205 5,864,541 3,815,321 Operating grants and contributions 15,301,219 15,028,527 21,569,356 23,198,271 Capital grants and contributions 18,667,619 13,360,280 7,779,713 11,048,200 Total governmental activities program revenues $ 49,057,304 $ 43,308,823 $ 47,342,955 $ 50,384,632 Business-type activities: Charges for services Sewage disposal works $ 12,158,439 $ 12,442,584 $ 12,659,662 $ 12,479,684 Water utility 8,406,928 8,553,225 8,906,136 8,959,023 Stormwater utility 3,754,148 4,076,396 4,367,963 4,714,670 Parking facilities 3,247,383 3,286,947 3,034,744 3,066,118 America's River Project 1,605 4 4 4 Refuse collection 3,857,340 4,185,051 4,232,542 4,351,428 Transit system 463,688 459,258 465,550 512,385 Salt 81,720 86,887 96,273 174,784 Operating grants and contributions 1,648,077 1,700,171 1,648,403 1,917,366 Capital grants and contributions 7,607,721 14,160,820 5,705,262 6,215,459 Total business-type activities program revenues 41,227,049 48,951,343 41,116,539 42,390,921 Total primary government program revenues $ 90,284,353 $ 92,260,166 $ 88,459,494 $ 92,775,553 Page 14�'of 1594 CITY OF DUBUQUE,IOWA CHANGES IN NET POSITION LAST TEN FISCAL YEARS (ACCRUAL BASIS OF ACCOUNTING) Year 2020 2021 2022 2023 2024 2025 $ 32,079,903 $ 32,583,676 $ 30,548,958 $ 31,897,099 $ 37,507,051 $ 42,246,798 22,667,132 20,949,455 21,999,636 23,176,938 35,365,930 29,132,841 1,677,181 1,487,042 1,003,870 966,542 2,584,445 1,194,584 13,576,571 11,341,436 14,452,466 17,282,589 14,920,985 18,098,149 17,848,570 18,168,279 16,866,498 19,094,222 17,578,377 24,384,708 8,821,692 10,046,004 7,210,508 9,651,738 13,144,802 13,129,591 2,929,997 2,791,647 2,004,709 2,520,840 2,701,343 2,758,203 $ 99,601,046 $ 97,367,539 $ 94,086,645 $ 104,589,968 $ 123,802,933 $ 130,944,874 $ 11,725,889 $ 12,248,931 $ 12,197,134 $ 13,038,176 $ 13,921,342 $ 16,309,220 7,631,411 7,604,425 7,212,652 8,140,552 11,461,023 10,377,709 5,887,171 6,164,947 6,047,606 6,493,098 7,014,499 8,821,297 3,414,851 3,334,222 2,972,990 3,261,531 4,042,315 3,321,009 3,161 - - - - - 4,387,683 4,546,168 4,452,838 5,599,895 6,434,520 6,122,676 4,748,463 4,494,303 4,027,600 4,615,225 5,437,858 5,064,099 333,556 147,524 129,265 103,396 199,715 156,888 38,132,185 38,540,520 37,040,085 41,251,873 48,511,272 50,172,898 $ 137,733,231 $ 135,908,059 $ 131,126,730 $ 145,841,841 $ 172,314,205 $ 181,117,772 $ 2,641,633 $ 4,942,529 $ 5,443,744 $ 4,966,834 $ 4,699,492 $ 5,333,958 6,732,825 10,937,121 9,591,742 5,707,265 5,394,819 4,738,211 2,237,000 2,876,779 3,564,782 3,233,591 2,032,625 2,065,389 5,455,952 1,753,928 4,100,714 6,049,651 7,149,929 7,593,774 14,484,320 24,436,818 19,956,589 18,825,358 22,093,055 27,363,673 15,450,271 12,266,220 4,007,842 16,280,486 13,669,481 25,871,122 $ 47,002,001 $ 57,213,395 $ 46,665,413 $ 55,063,185 $ 55,039,401 $ 72,966,127 $ 12,606,632 $ 13,070,575 $ 13,870,390 $ 14,835,494 $ 15,821,420 $ 17,734,103 9,273,720 9,608,742 10,153,939 10,802,909 11,400,670 13,184,681 5,061,855 5,177,696 5,233,932 5,611,781 6,070,523 6,413,501 2,313,344 2,007,307 2,692,362 2,202,247 2,392,056 2,628,149 4,448,317 4,424,410 4,646,568 4,801,782 4,890,101 5,375,425 400,576 168,493 405,194 458,919 455,527 476,406 346,753 125,189 100,763 79,163 181,237 103,328 2,967,619 9,894,477 2,281,855 4,349,167 2,551,379 2,241,789 6,410,594 6,691,110 7,444,056 9,279,293 11,388,577 17,251,054 43,829,410 51,167,999 46,829,059 52,420,755 55,151,490 65,408,436 $ 90,831,411 $ 108,381,394 $ 93,494,472 $ 107,483,940 $ 110,190,891 $ 138,374,563 Page 14��of 1594 TABLE 2 Fiscal- 2016 2017 2018 2019 Net(Expense)/Revenue Governmental activities $ (38,607,948) $ (51,334,940) $ (49,552,772) $ (43,616,009) Business-type activities 5,037,466 12,522,340 4,270,124 3,494,540 Total primary government net expense $ (33,570,482� $ (38,812,600� $ (45,282,648� $ (40,121,469� General Revenues and Other Changes in Net Position Governmental activities: General Revenues Property taxes $ 36,518,506 $ 39,678,473 $ 39,632,246 $ 37,973,888 Local option sales tax 9,155,411 8,890,046 8,610,948 8,940,109 Hotel/motel tax 2,128,042 2,821,745 2,286,469 2,113,273 Utility franchise fees 4,360,107 4,558,847 4,832,958 5,072,350 Gaming 8,440,161 8,098,324 8,062,251 8,730,986 Unrestricted investment earnings 1,082,165 335,577 688,769 1,858,476 Miscellaneous - - - - Gain on sale of capital assets 813,492 83,720 309,857 94,980 Transfers (979,900) (1,071,163) (5,423,015) (8,981,064) Total governmental activities $ 61,517,984 $ 63,395,569 $ 59,000,483 $ 55,802,998 Business-type activities: General Revenues Unrestricted investment earnings $ 407,528 $ 231,746 $ 268,283 $ 798,497 Miscellaneous - - - - Gain on sale of capital assets 102,824 54,074 4,680 80,479 Transfers 979,900 1,071,163 5,423,015 8,981,064 Total business-type activities 1,490,252 1,356,983 5,695,978 9,860,040 Total primary government S 63,008,236 $ 64,752,552 $ 64,696,461 S 65,663,038 Change in Net Position Governmental activities $ 22,910,036 $ 12,060,629 $ 9,447,711 $ 12,186,989 Business-type activities 6,527,718 13,879,323 9,966,102 13,354,580 Total primary government S 29,437,754 $ 25,939,952 $ 19,413,813 S 25,541,569 Page 14��of 1594 TABLE 2(continued) Year 2020 2021 2022 2023 2024 2025 $ (52,599,045) $ (40,154,144) $ (47,421,232) $ (49,526,783) $ (68,763,532) $ (57,978,747) 5,697,225 12,235,793 9,788,974 11,168,882 6,640,218 15,235,538 $ (46,901,820� $ (27,918,351� $ (37,632,258� $ (38,357,901� $ (62,123,314� $ (42,743,209� $ 38,354,691 $ 39,524,078 $ 39,406,493 $ 40,211,474 $ 40,926,636 $ 47,278,366 9,652,332 11,328,295 12,738,941 12,154,160 12,440,662 12,588,620 2,117,506 2,036,045 2,915,854 3,071,858 2,814,271 3,273,746 4,976,472 4,920,610 6,044,713 7,061,030 5,617,704 5,369,898 7,394,294 8,077,003 12,000,140 9,846,790 8,721,633 9,859,591 1,857,420 142,102 (390,365) 5,674,974 2,420,275 8,293,425 - - - 2,058,660 1,770,389 3,243,585 23,866 296,969 244,104 - 1,010,802 188,813 (10,561,636) (12,845,032) (7,430,546) (3,683,491) (5,409,229) (384,272) $ 53,814,945 $ 53,480,070 $ 65,529,334 $ 76,395,455 $ 70,313,143 $ 89,711,772 $ 796,494 $ 130,706 $ 119,466 $ 1,571,115 $ 1,081,314 $ 2,375,715 - - - 435,822 756,376 1,267,387 16,500 - (206,351) 57,732 10,736 - 10,561,636 12,845,032 7,430,546 3,683,491 5,409,229 384,272 11,374,630 12,975,738 7,343,661 5,748,160 7,257,655 4,027,374 $ 65,189,575 S 66,455,808 $ 72,872,995 $ 82,143,615 S 77,570,798 $ 93,739,146 $ 1,215,900 $ 13,325,926 $ 18,108,102 $ 26,868,672 $ 1,549,611 $ 31,733,025 17,071,855 25,211,531 17,132,635 16,917,042 13,897,873 19,262,912 $ 18,287,755 S 38,537,457 $ 35,240,737 $ 43,785,714 S 15,447,484 $ 50,995,937 Page 14�of 1594 CITY OF DUBUQUE,IOWA FUND BALANCES,GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal- 2016 2017 2018 2019 General Fund Nonspendable $ 6,049,052 $ 5,585,672 $ 5,414,922 $ 5,369,478 Restricted - 2,208 - 229,995 Assigned 1,015,935 1,590,065 1,267,250 1,438,616 Unassigned 10,908,497 12,582,596 15,193,241 19,276,479 Total general fund $ 17,973,484 $ 19,760,541 $ 21,875,413 $ 26,314,568 All Other Governmental Funds Nonspendable $ 553,292 $ 944,856 $ 415,271 $ 406,813 Restricted 27,450,187 28,103,397 30,347,598 34,367,024 Committed 7,635,502 6,592,154 4,660,158 3,009,111 Unassigned - - (2,021,937) (1,185,047) Total all other governmental funds $ 35,638,981 $ 35,640,407 $ 33,401,090 $ 36,597,901 Page 14�of 1594 TABLE 3 Year 2020 2021 2022 2023 2024 2025 $ 5,145,558 $ 3,895,638 $ 3,631,563 $ 3,150,525 $ 3,060,048 $ 2,806,397 219,741 197,264 186,705 - - - 1,396,196 2,868,215 4,292,669 4,336,311 3,518,111 2,623,173 20,128,223 28,023,989 36,610,486 44,067,606 39,310,104 40,505,076 $ 26,889,718 $ 34,985,106 $ 44,721,423 $ 51,554,442 $ 45,888,263 $ 45,934,646 $ 1,030,515 $ 960,898 $ 1,159,785 $ 714,788 $ 1,059,428 $ 1,296,129 30,247,351 40,785,902 42,155,557 45,484,328 45,751,966 69,772,431 5,823,218 7,901,868 10,202,856 3,769,015 4,113,787 4,113,786 (2,703,558) (1,561,830) - (1,006,837) (3,233,130) (2,324,738) $ 34,397,526 $ 48,086,838 $ 53,518,198 $ 48,961,294 $ 47,692,051 $ 72,857,608 Page 14�of 1594 CITY OF DUBUQUE,IOWA CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS LAST TEN FISCAL YEARS (MODIFIED ACCRUAL BASIS OF ACCOUNTING) Fiscal- 2016 2017 2018 2019 Revenues Taxes $ 51,580,084 $ 55,949,111 $ 55,362,621 $ 54,101,901 Special assessments 111,193 261,233 122,968 113,178 Licenses and permits 1,480,643 1,505,564 1,642,498 1,619,892 Intergovernmental 29,302,824 26,314,297 27,229,554 31,359,695 Charges for services 10,919,854 10,816,025 11,559,017 12,476,036 Fines and forfeits 421,925 484,687 407,322 404,400 Investment earnings 1,082,165 335,577 688,769 1,701,846 Contributions 1,440,405 689,237 816,922 1,343,916 Gaming 8,440,161 8,098,324 8,062,251 8,708,702 Miscellaneous 1,367,875 1,811,681 1,589,072 1,526,804 Total revenues $ 106,147,129 $ 106,265,736 $107,480,994 $ 113,356,370 Expenditures Current Public safety $ 28,036,551 $ 29,155,128 $ 28,581,466 $ 28,807,920 Public works 14,597,823 11,728,716 11,687,309 12,851,393 Health and social services 1,015,987 868,280 854,045 1,046,184 Culture and recreation 11,909,029 12,397,294 12,776,591 13,037,048 Community and economic development 13,473,413 16,474,553 20,350,200 15,730,191 General government 6,436,114 7,287,586 6,755,479 6,571,094 Debt service Principal 10,302,412 17,615,698 7,989,850 5,509,605 Interest 3,707,268 3,579,807 3,274,200 3,320,911 Capital projects 31,504,581 16,260,851 17,402,848 20,145,054 Total expenditures $ 120,983,178 $ 115,367,913 $ 109,671,988 $ 107,019,400 Excess(deficiency)of revenues over (under)expenditures $ (14,836,049) $ (9,102,177) $ (2,190,994) $ 6,336,970 Other Financing Sources(Uses) Issuance of debt $ 3,933,882 $ 230,000 $ 110,000 $ 2,883,875 Discount on bonds 292,521 319,384 16,915 81,693 Premiums on bonds - 11,023,700 - - Issuance of refunding bonds 4,650,000 - 1,778,325 - Payment to refunded bonds escrow agent - Transfers in 17,397,007 18,814,586 18,889,096 17,025,952 Transfers out (18,376,907) (19,917,219) (20,980,391) (18,876,402) Insurance recovery 86,359 41,345 98,058 87,843 Sale of capital assets 1,063,814 378,861 2,154,546 96,035 Total other financing sources(uses) $ 9,046,676 $ 10,890,657 $ 2,066,549 $ 1,298,996 Special Items Transfer of roads $ - $ - $ - $ - Total special items $ - $ - $ - $ - Net change in fund balances $ (5,789,373) $ 1,788,480 $ (124,445) $ 7,635,966 Debt service as a percentage of noncapital expenditure 16 % 21°/a 12 % 10 % Page 14�of 1594 TABLE 4 Year 2020 2021 2022 2023 2024 2025 $ 54,818,674 $ 57,809,028 $ 61,106,001 $ 62,496,318 $ 61,788,489 $ 68,507,706 76,394 101,219 42,996 118,387 116,078 43,269 1,497,086 1,983,531 2,211,503 1,915,186 2,644,160 2,671,669 28,618,060 31,984,376 27,568,957 31,162,370 34,011,422 44,229,375 10,994,598 13,480,915 16,152,093 16,555,832 16,005,008 16,674,163 365,458 375,268 303,348 369,273 269,433 262,474 1,699,015 120,890 (401,489) 5,500,145 2,318,348 8,077,404 1,163,721 3,564,843 809,911 2,542,916 1,467,610 2,383,170 7,394,294 8,077,003 12,000,140 9,846,790 8,721,633 9,859,591 3,517,089 1,399,203 2,870,089 1,887,319 1,656,592 3,459,839 $ 110,144,389 $ 118,896,276 $ 122,663,549 $ 132,394,536 $ 128,998,773 $ 156,168,660 $ 29,518,515 $ 29,038,359 $ 31,256,017 $ 33,748,788 $ 35,675,758 $ 39,522,370 11,838,812 12,104,310 15,643,225 17,537,029 17,295,690 17,373,666 1,340,544 1,067,491 880,876 1,015,604 1,086,883 1,198,214 13,199,378 11,917,333 14,626,704 17,166,367 15,928,295 15,716,680 16,685,406 17,531,856 18,756,833 19,011,697 20,780,268 20,974,494 7,447,439 7,499,790 7,930,781 7,728,869 10,661,552 12,525,069 7,065,499 27,524,288 4,518,117 5,545,842 5,115,412 5,768,489 3,044,421 2,997,621 2,693,685 2,707,063 2,887,133 2,829,954 21,089,439 15,308,122 17,435,407 25,289,860 29,157,947 37,303,755 $ 111,229,453 $ 124,989,170 $ 113,741,645 $ 129,751,119 $ 138,588,938 $ 153,212,691 $ (1,085,064) $ (6,092,894) $ 8,921,904 $ 2,643,417 $ (9,590,165) $ 2,955,969 $ 1,372,907 $ - $ 9,565,000 $ 811,353 $ 6,243,207 $ 22,997,667 62,182 953,857 123,888 - - - - 25,605,950 - - - - 17,146,200 13,730,128 12,868,560 10,591,993 20,292,814 21,121,812 (19,858,343) (19,145,976) (16,765,216) (12,975,637) (25,389,768) (22,399,483) 71,604 136,979 17,327 288,664 211,349 18 665,289 924,656 282,482 916,325 1,297,141 201,522 $ (540,161) $ 22,205,594 $ 6,092,041 $ (367,302) $ 2,654,743 $ 21,921,536 $ - $ 5,672,000 $ - $ - $ - $ - $ - $ 5,672,000 $ - $ - $ - $ - $ (1,625,2251 $ 21,784,700 S 15,013,945 S 2,276,115 S (6,935,422) $ 24,877,505 11% 28 % 7% 8 % 7°/a 7% Page 14�of 1594 CITY OF DUBUQUE,IOWA TAXABLE AND ASSESSED VALUE OF PROPERTY TABLE 5 LAST TEN FISCAL YEARS (IN THOUSANDS OF DOLLARS) Total Taxable Real Property Exemptions Total Value to Total Levy Fiscal Taxable Assessed Real Taxable Assessed Assessed Total Direct Year Year Value Value Property Value Value Value Tax Rate 2014 2016 2,508,933 3,723,003 8,631 2,500,302 3,723,003 67.16 11.02590 2015 2017 2,652,700 3,914,425 8,086 2,644,614 3,914,425 67.56 11.16739 2016 2018 2,686,813 3,931,498 7,783 2,679,030 3,931,498 68.14 10.89220 2017 2019 2,765,470 4,141,732 7,921 2,757,549 4,141,732 66.58 10.58844 2018 2020 2,825,245 4,185,444 7,640 2,817,605 4,185,444 67.32 10.33144 2019 2021 2,912,635 4,378,243 7,531 2,905,104 4,378,243 66.35 1014400 2020 2022 2,980,617 4,463,262 7,432 2,973,185 4,463,262 66.61 9.88899 2021 2023 3,100,106 4,803,254 7,371 3,092,735 4,803,254 64.39 9.71686 2022 2024 3,062,014 4,845,548 7,111 3,054,903 4,845,548 63.05 9.90135 2023 2025 3,432,485 6,010,652 22,090 3,410,395 6,010,652 56.74 9.92637 Source: Dubuque County Assessor's and Auditor's Offices Page 14�of 1594 CITY OF DUBUQUE,IOWA PROPERTY TAX RATES DIRECT AND OVERLAPPING GOVERNMENTS TABLE 6 LAST TEN FISCAL YEARS TAX RATES PER$1,000 ASSESSED VALUE Ratio of Dubuque Board of Dubuque Levy Fiscal Dubuque School Education and Area 1 Dubuque City to Year Year City District Independents Voc.Tech County Total Total 2014 2016 11.02590 14.05629 0.63899 0.91036 6.38779 33.01933 33.39 2015 2017 1116739 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 2022 2024 9.90135 14.51122 0.66116 0.92871 5.55009 31.55253 31.38 2023 2025 9.92637 12.99580 0.63836 0.94143 5.62184 30.12380 32.95 Separate components of the Dubuque City Rate is as follows: Levy Fiscal Public Employee Debt Year Year General Transit Insurance Benefits Service Total 2014 2016 8.10000 0.48461 0.16428 2.16440 0.11261 11.02590 2015 2017 8.10000 0.49739 014963 2.30637 0.11400 1116739 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 2022 2024 8.10000 0.57669 0.21362 0.91356 0.09748 9.90135 2023 2025 7.94118 0.69118 0.50760 0.70307 0.08334 9.92637 Source:Dubuque County Auditor's Office Page 14�of 1594 CITY OF DUBUQUE,IOWA PRINCIPAL PROPERTY TAXPAYERS TABLE 7 CURRENT YEAR AND NINE YEARS AGO (IN THOUSANDS OF DOLLARS) 2025 2016 Percentage Percentage of of Total City Total City Taxable Taxable Taxable Taxable Taxpayer Value Rank Value Value Rank Value Peninsula Gaming Company LLC $ 62,259 1 1.83 % $ 56,945 1 2.28% Interstate Power&Light Co 42,676 2 1.25 — Kennedy Mall Inc 34,912 3 1.02 35,410 2 1.42 MAR Holdings LLC(Medical Assoc.) 28,553 4 0.84 20,945 5 0.84 Progressive Processing LLC(Hormel) 25,423 5 0.75 Walter Development LLC 21,705 6 0.64 3 Sky Crown LLC 21,503 7 0.63 — Black Hills Energy Corp 19,828 8 0.58 Seippel Warehouse 19,484 9 0.57 Simmons Pet Food 18,832 10 0.55 15,559 0.62 McGraw Hill Global Education LLC 14,487 7 0.58 Platinum Holdings LLC 14,062 8 0.56 Flexsteel Industries Inc. 12,534 10 0.50 GRDT Investments LLC(Queck) 13,028 9 0.52 $ 295,175 8.66 % $ 234,551 7.32% Source: Dubuque County Auditor's Office Page 14�'of 1594 CITY OF DUBUQUE,IOWA PROPERTY TAX LEVIES AND COLLECTIONS TABLE 8 LAST TEN FISCAL YEARS (IN THOUSANDS OF DOLLARS) Ratio of Total Percent of Total Tax Delinquent Tax Current Current Delinquent Total Tax Collections Outstanding Taxes to Fiscal Levy Levy Tax Taxes Tax Collections to Total Delinquent Total Year Year (1) Collections Collected Collections (2) Tax Levy Taxes Tax Levy 2016 2015 24,944 $ 24,889 99.8% 84,000 $ 24,973 100.1% $ 288 1.15 2017 2016 26,435 26,318 99.6 2,000 26,320 99.6 354 1.34 2018 2017 25,924 26,026 100.4 1,000 26,027 100.4 199 0.77 2019 2018 26,556 26,442 99.6 4,000 26,446 99.6 202 0.76 2020 2019 26,360 26,106 99.0 1,000 26,107 99.0 1,096 4.16 2021 2020 26,263 26,289 100.1 239,000 26,528 101.0 611 2.33 2022 2021 26,260 26,142 99.6 41,000 26,183 99.7 478 1.82 2023 2022 26,250 26,279 100.1 10,000 26,289 100.1 466 1.78 2024 2023 25,929 27,054 104.3 10,000 27,064 104.4 230 0.89 2025 2024 28,846 29,026 100.6 10,000 29,036 100.7 301 1.04 (1)Exclude tax increment levy. (2)Includes taxes collected in June by the County,but not received by the City until July. Page 14��of 1594 CITY OF DUBUQUE,IOWA RATIOS OF OUTSTANDING DEBT BY TYPE LAST TEN FISCAL YEARS Governmental Activities Business- Tax Tax General Increment Increment Other General Fiscal Obligation Financing Financing Loans Leases Subscriptions Obligation Year Bonds Bonds Notes Payable Payable Payable Bonds 2016 $ 58,869,812 $ 20,764,818 $ 625,429 $ 5,347,142 $ - $ - $ 46,806,473 2017 53,800,719 20,333,690 451,763 4,650,000 - - 44,487,023 2018 48,833,498 19,867,562 255,881 4,067,700 - - 41,979,910 2019 46,917,828 19,366,434 176,054 3,984,111 - - 39,246,002 2020 41,985,513 18,825,306 91,860 3,899,264 - - 36,220,856 2021 41,745,365 18,244,178 46,195 3,748,361 - - 34,104,175 2022 47,326,155 17,654,438 - 3,473,387 208,537 - 30,576,996 2023 43,714,425 16,985,776 - 3,210,157 164,142 1,798,899 27,302,991 2024 46,272,593 16,266,688 - 2,940,486 285,404 1,080,538 24,100,702 2025 65,217,913 15,492,122 - 2,664,172 474,148 423,552 22,182,333 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. Page 14��of 1594 TABLE 9 Type Activities Percentage Other Subscriptio Total of Capital Loan Revenue Loans Leases ns Primary Personal Per Notes Bonds Payable Payable Payable Government Income(1) Capital(1) $104,156,549 $ 34,196,999 $ 236,623 $ - $ - $271,003,845 9.9 % 4,637 110,513,944 33,840,566 5,209,900 - - 273,287,605 10.1 4,648 112,765,210 33,474,133 4,181,826 - - 265,425,720 9.1 4,555 111,655,588 33,097,700 3,152,331 - - 257,596,048 8.4 4,446 116,965,647 32,706,767 2,152,331 - - 252,847,544 7.7 4,238 115,011,616 32,304,834 1,088,786 - - 246,293,510 7.5 4,135 113,108,033 31,677,569 54,850 251,803 - 244,331,768 6.9 4,133 108,521,425 29,096,115 - 224,936 11,549 231,030,415 6.2 3,924 103,352,351 25,483,159 - 203,103 - 219,985,024 5.8 3,753 100,657,355 21,734,839 - 180,585 - 229,027,019 * 3,838 Page 14�of 1594 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 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 2.61 4,463,262 1.75 1,350 2023 71,071 3,100,106 2.29 4,803,254 1.48 1,206 2024 70,373 3,062,014 2.30 4,845,548 1.45 1,201 2025 87,400 3,432,485 2.55 6,010,652 1.45 1,465 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. Page 14�i of 1594 CITY OF DUBUQUE,IOWA DIRECT AND OVERLAPPING DEBT TABLE 11 AS OF JUNE 30,2025 Net General Tax Obligation Increment Sales Tax Other Percentage Amount Bonded Debt Financing Revenue Loans Leases Subscriptions Applicable Applicable to Jurisdiction Outstanding Bonds' Bonds Payable Payable Payable to City Government Direct,City of Dubuque,Iowa $ 65,217,913 $ 15,492,122 $ 2,664,172 $ 2,940,486 $ 474,148 $ 423,552 100.00% $ 87,212,394 Overlapping: Dubuque County 13,000,000 - - - - - 73.70% 9,580,882 Dubuque Community School District' - - - - - - 97.47% - Northeast Iowa Community College 27,240,000 - - - 16,880,000 - 73.79% 32,554,998 TotalOverlapping 40,240,000 - - - 16,880,000 - 42,135,880 Total $ 105,457,913 $ 15,492,122 $ 2,664,172 $ 2,940,486 $ 17,354,148 $ 423,552 $ 129,348,274 'Excludes sales tax revenue bonds. 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 borne by the residents and businesses of Dubuque.This process recognizes that,when considering the City's ability to issue and repay long- term debt,the entire debt burden borne by the residents and businesses should be taken into account.However,this does not imply that every taxpayer is a resident,and therefore responsible for repaying the debt,of each overlapping government. Page 14��of 1594 CITY OF DUBUQUE,IOWA LEGAL DEBT MARGIN INFORMATION LAST TEN FISCAL YEARS (IN THOUSANDS OF DOLLARS) 2016 2017 2018 2019 Debt limit $ 196,031 $ 207,174 $ 209,049 $ 221,513 Total net debt applicable to limit 152,386 141,076 124,926 117,223 Legal debt margin $ 43,645 $ 66,098 $ 84,123 $ 104,290 Total net debt applicable to the debt limit as a percentage of debt limit 77.74 % 68.10 % 59.76 % 52.92 % Page 14��of 1594 TABLE 12 2020 2021 2022 2023 2024 2025 $ 239,298 $ 239,298 $ 241,616 $ 259,297 $ 262,723 $ 321,926 109,021 102,256 101,870 93,413 91,150 94,816 $ 130,277 $ 137,042 $ 139,746 $ 165,884 $ 171,573 $ 227,110 45.56% 42.73% 42.16% 36.03% 34.69% 29.45% Legal Debt Margin Calculation for Fiscal Year 2025 Estimated actual value $ 6,438,522 Debt limit- 5% of total actual valuation 321,926 Debt applicable to limit: (Including GO Debt, Loans Payable, and TIF Debt) (94,817) Legal debt margin $ 227,109 Page 15�of 1594 CITY OF DUBUQUE,IOWA REVENUE DEBT COVERAGE LAST TEN FISCAL YEARS TABLE 13 (IN THOUSANDS OF DOLLARS) Net Current Fiscal Year's Revenue Debt Service Requirements Gross Operating Available for Fiscal Revenues Expenses Debt Coverage Year (1) (2) Service Principal Interest Total (3) WATER UTILITY 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 2024 11,876 9,598 2,278 842 245 1,087 210 2025 14,497 8,574 5,923 859 229 1,088 5.44 STORMWATER UTILITY 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 2024 6,615 2,681 3,934 2,062 684 2,746 1.43 2025 7,469 4,672 2,797 2,385 602 2,987 0.94 SEWAGE DISPOSAL WORKS 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 2024 16,145 8,960 7,185 3,281 1,179 4,460 1.61 2025 18,132 11,387 6,745 3,752 1,138 4,890 1.38 (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. Page 15�1�of 1594 CITY OF DUBUQUE,IOWA WATER AND SEWER RECEIPT HISTORY TABLE 14 LAST TEN FISCAL YEARS Fiscal Water Sewer Gallons Year Revenue Revenue Billed 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 2024 11,466,151 15,832,634 1,909,676,366 2025 12,925,329 17,780,996 1,944,644,230 Source: Cash basis receipt ledgers. *Revenue includes penalties and investment earnings collected New in 2015 - revenue does not include sales tax.All years reflect this change New in 2020 - revenue does not include bonds. WATER RATE SCHEDULE HISTORY Steps Gallons 2025 2024 2023 2022 2021 2020 2019 2018 2017 2016 First 22,440 @ $0.00703 $0.00651 $0.00553 $0.00527 $0.00512 $0.00512 $0.00488 $0.00474 $0.00460 $0.00447 Next 89,760 @ 0.00577 0.00534 0.00454 0.00432 0.00419 0.00419 0.00399 0.00387 0.00376 0.00365 Next 261,800 @ 0.00537 0.00497 0.00423 0.00403 0.00310 0.00391 0.00372 0.00361 0.00350 0.00340 Next 374,000 @ 0.00474 0.00439 0.00373 0.00355 0.00345 0.00345 0.00329 0.00319 0.00310 0.00301 Excess @ 0.00415 0.00384 0.00327 0.00311 0.00302 0.00302 0.00288 0.00280 0.00272 0.00264 Page 15�of 1594 CITY OF DUBUQUE,IOWA WATER METERS BY RATE CLASS TABLE 15 LAST TEN FISCAL YEARS Fiscal Residential Commercial Industrial Government Total Year 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 2024 22,372 2,093 74 169 24,708 2025 22,442 2,099 74 170 24,785 Source:Water Department Page 15�of 1594 CITY OF DUBUQUE,IOWA LARGEST WATER AND SEWER CUSTOMERS TABLE 16 FISCAL YEAR 2025 Percentage of Percentage of Water Total Water Sewer Total Water Customer Receipts Rank Receipts Receipts Rank Receipts Simmons Pet Food Inc $ 980,738 1 7.59 % Rousselot Inc#155296 429,748 2 3.32 Hormel PO 5121050 293,443 3 2.27 Prairie Farms Dairy Inc 233,620 4 1.81 Hormel PO 5121050 217,895 5 1.69 496,432 1 2.79 Finley Hospital 72,234 6 0.56 145,916 3 0.82 Mercy Health Services-Iowa Corp 62,765 7 0.49 129,470 4 0.73 Yes Companies Exp Fred LLC 59,892 8 0.46 122,621 5 0.69 Alpine Park MHC LLC 59,892 9 0.46 Tri-Technical Systems Inc 53,346 10 0.41 Stonehill Nursing Home 88,553 7 0.50 IADU Table Mound MHP LLC 83,730 8 0.47 Clean Sweep of I&I LLC 61,291 9 0.34 Platinum Holdings LLC 58,079 10 0.33 Total Receipts from all water and sewer customers $ 12,925,329 $ 17,780,996 Source:Water Department *Same company,separate accounts.Previous years combined several accounts with the same business name.Now listed separately. Page 15��of 1594 CITY OF DUBUQUE,IOWA SALES TAX INCREMENT BONDS TABLE 17 FISCAL YEAR ENDING JUNE 30,2025 Estimated Senior Lien Second Lien Remaining Sales Tax Series 2015A Remaining Series 2014 Revenues Increment Net Debt Revenues After Net Debt After Second Fiscal Revenue Service Senior Lien Service Lien Debt Year Receipts* (1) Debt Service (2) Service 2016 * $ 2,532,846 $ - $ 2,532,846 $ - $ 2,532,846 2017 * 3,945,134 - 3,945,134 (323,100) 3,622,034 2018 * 3,654,915 (762,650) 2,892,265 (323,100) 2,569,165 2019 * 4,207,297 (762,650) 3,444,647 (323,100) 3,121,547 2020 * 4,709,559 (762,650) 3,946,909 (323,100) 3,623,809 2021 * 4,068,763 (762,650) 3,306,113 (323,100) 2,983,013 2022 * 9,751,827 (762,650) 8,989,177 (323,100) 8,666,077 2023 * 7,079,324 (2,767,650) 4,311,674 (438,100) 3,873,574 2024 * 7,114,158 (2,771,000) 4,343,158 (1,393,500) 2,949,658 2025 * 7,103,353 (2,768,969) 4,334,384 (1,400,500) 2,933,884 2026 6,952,046 (2,771,031) 4,181,015 (1,344,250) 2,836,765 2027 6,952,532 (2,768,719) 4,183,813 (1,363,000) 2,820,813 2028 6,947,494 (2,768,394) 4,179,100 (1,365,000) 2,814,100 2029 6,723,750 (2,767,300) 3,956,450 (1,365,000) 2,591,450 2030 6,250,000 (2,768,800) 3,481,200 - 3,481,200 2031 4,467,912 (2,766,400) 1,701,512 - 1,701,512 2032 2,217,912 - 2,217,912 - 2,217,912 2033 2,250,000 - 2,250,000 - 2,250,000 *Actual Receipts (1)Net of capitalized interest and the debt service reserve fund (2) Net of capitalized interest Page 15��of 1594 CITY OF DUBUQUE,IOWA DEMOGRAPHIC AND ECONOMIC STATISTICS TABLE 18 LAST TEN CALENDAR YEARS Per Capita Public Personal Median School Unemployment Personal Income Age Enrollment Rate Year Population Income (1) (2) (3) (4) 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 55,178 39 10,371 5.4 2022 59,119 3,550,095,950 60,050 39 10,120 2.9 2023 58,877 3,739,867,040 63,520 40 9,996 2.9 2024 58,618 3,823,359,050 65,225 40 9,688 3.2 2025 59,667 * * 40 9,666 3.7 Data Sources: (1) U.S. Department of Commerce, Bureau of Economic Analysis (2) Greater Dubuque Development Corporation (3) Dubuque Community School District (4) Iowa Department of Employment Services as of June 30. *Unavailable at report date. Page 15�0�of 1594 THIS PAGE IS INTENTIONALLY LEFT BLANK Page 1507 of 1594 CITY OF DUBUQUE,IOWA PRINCIPAL EMPLOYERS TABLE 19 CURRENT YEAR AND NINE YEARS AGO 2025 2016 Percentage of Percentage of Total City Total City #of Employment #of Employment Employer Employees Rank (1) Employees Rank (1) John Deere 2,810 1 5.23 % 2,400 1 4.41% uubuque�ommumry acnooi 2,000 2 3.72 1,946 2 3.58 T,:,.�r,,,� MercyOne Medical Center 1,438 3 2.68 1,313 3 2.41 HODGE 1,102 4 2.05 Medical Associates 1,069 5 1.99 1,027 4 1.89 University of Wisconsin-Platteville 1,062 6 1.98 UnityPoint Health-Finley Hospital 940 7 1.75 859 5 1.58 Cottingham&Butler 851 8 1.58 City of Dubuque 737 9 1.37 Sedgwick 725 10 1.35 550 9 1.01 uubuque tsanx ana rrust/ 538 8 0.99 u,,.,.-r1....,7 Andersen Windows 750 6 1.38 Eagle Window and Door 538 8 0.99 12,734 23.70 % 10,616 19.52 °/a 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 Page 15�of 1594 CITY OF DUBUQUE,IOWA FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTMENT LAST TEN FISCAL YEARS 2016 2017 2018 2019 2020 Public Safety Emergency Communications 13.00 14.00 14.00 14.00 15.00 Fire 90.00 90.00 90.00 90.00 91.00 Police 116.00 116.00 116.00 117.00 118.00 4 Building Services 12.00 12.00 12.00 11.00 11.00 Public Works Public Works 86.42 86.42 86.42 87.42 87.42 Engineering 30.00 30.00 26.06 26.00 27.00 Health&Social Services Health Services 4.00 4.00 4.00 4.00 5.00 Human Rights 5.00 5.00 5.00 5.00 5.00 Cultural and Recreation Civic Center 015 015 015 015 015 Conference Center 0.00 0.00 0.00 0.00 0.00 Library 19.00 19.00 19.00 19.00 19.00 Park 23.50 22.50 22.50 22.50 22.50 Recreation 11.93 11.93 11.93 11.93 11.93 Community&Economic Development Community/Economic Dev 2.00 2.00 3.00 3.00 3.00 Housing Services 21.00 25.00 25.00 23.52 27.00 Planning Services 8.00 8.00 8.00 8.00 8.00 5 Office of Neighborhood Support and Shared Prosperity 0.00 0.00 0.00 0.00 0.00 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 16.00 16.00 17.00 17.50 15.50 3 Finance/Budget 15.00 15.00 15.00 14.00 19.00 Legal 5.00 5.00 4.00 4.00 4.00 Information Services 8.00 8.00 8.00 8.00 8.00 Business Type Water 25.00 25.00 25.00 24.00 25.00 Water&Resource Recovery Center 17.00 17.00 17.00 15.00 15.00 'Parking 9.00 8.00 7.00 0.00 0.00 z Transportation Services 13.00 13.00 14.00 20.00 23.00 Total 567.00 570.00 567.06 562.02 577.50 Source: City Budget Records Departments with employees who are allocated to more than one function reflected in area with largest number of employ 'Parking division merged with Transit to become the Transportation Services Department z Department renamed FY'19 Transportation Services when Parking division merged with Transit 3 Finance and Budget consolidated in FY20. 4 Building Services was disbanded and merged with Housing&Engineering in FY23 5 Office of Neighborhood Support and Shared Prosperity created in FY23. Page 15�of 1594 TABLE 20 2021 2022 2023 2024 2025 15.00 15.00 16.00 17.00 19.88 92.00 92.00 99.00 101.00 104.00 119.00 119.00 120.00 121.00 121.00 11.00 12.00 0.00 0.00 0.00 89.42 89.42 90.42 93.42 94.42 28.00 28.00 36.00 37.00 39.00 6.00 6.00 7.00 7.00 7.00 4.00 4.00 3.00 3.00 3.00 0.15 0.15 0.15 0.15 0.15 0.00 0.00 0.15 0.15 0.15 20.00 20.00 21.00 22.00 22.00 22.50 22.50 23.35 25.35 25.35 11.93 12.93 16.93 16.93 8.93 3.00 3.00 3.00 3.00 3.00 29.00 29.00 35.00 36.00 36.00 8.00 8.00 8.00 8.00 8.00 0.00 0.00 3.00 3.00 4.00 12.00 12.00 13.00 13.00 13.00 2.00 2.00 2.00 0.00 0.00 3.00 3.00 4.00 4.00 4.00 18.00 18.00 21.00 23.00 24.00 19.00 19.00 19.00 22.00 21.00 5.00 5.00 5.00 5.00 5.00 8.00 8.00 11.00 12.00 12.00 25.00 25.00 25.00 26.00 26.00 15.00 15.00 15.00 17.00 17.00 0.00 0.00 0.00 0.00 0.00 23.00 23.00 27.00 30.00 31.00 589.00 591.00 624.00 646.00 648.88 Page 15�of 1594 CITY OF DUBUQUE,IOWA OPERATING INDICATORS BY FUNCTION/PROGRAM LAST TEN FISCAL YEARS Fiscal- 2016 2017 2018 2019 Public Safety Police Physical arrests 3,397 3,238 3,519 3,403 Traffic violations 9,058 9,063 9,415 8,369 Parking violations 38,880 33,953 32,857 25,685 Fire Number of calls answered 5,750 5,990 5,949 6,058 Inspections conducted 993 1,649 1,675 1,232 Sewer Sewage system Daily average treatment in gallons 7,016,000 7,377,000 7,900,000 7,930,000 Maximum daily capacity of treatment plant in 24,500,000 24,500,000 24,500,000 24,500,000 gallons Water systems Daily average consumption in gallons 7,068,184 7,200,000 6,917,000 6,133,000 Maximum daily capacity of plant in gallons 18,000,000 18,000,000 18,000,000 18,000,000 Refuse(Municipal Collection) Tonnage 11,098 11,284 11,481 11,569 Sources:Various City Departments Statistics updated for fiscal year 2017 Page 15�of 1594 TABLE 21 Year 2020 2021 2022 2023 2024 2025 2,830 2,491 2,573 2,783 2,954 2,723 7,156 5,312 6,317 6,411 7,594 6,592 18,044 20,428 19,851 20,428 20,707 18,432 6,304 7,277 7,814 7,696 7,912 8,259 1,260 296 807 763 532 737 8,730,000 6,682,013 6,682,013 7,120,000 7,294,000 7,171,000 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 24,500,000 6,210,000 6,390,000 6,510,000 6,678,000 6,822,000 7,120,000 18,000,000 13,000,000 13,000,000 9,317,000 9,987,000 12,600,000 12,212 13,482 13,290 12,769 12,693 12,929 Page 15�of 1594 CITY OF DUBUQUE,IOWA CAPITAL ASSETS BY FUNCTION LAST TEN FISCAL YEARS 2016 2017 2018 2019 Public safety Police Stations 1 1 1 1 Patrol units 22 22 22 22 Fire Stations 6 6 6 6 Aerial trucks 3 3 3 3 Public works Streets Miles ' 332 336 334 340 Street Lights ' 2,162 2,184 2,312 2,436 Health and social services Hospital 2 2 2 2 Number of patient beds 373 373 373 373 Cultural and recreation Library 1 1 1 1 Golf 1 1 1 1 Parks 53 53 53 53 Acreage 974 974 974 974 Recreation Civic center 1 1 1 1 Swimming pools 2 2 2 2 Softball fields 11 11 11 10 Baseball fields 1 1 1 1 Accessible ballfield 0 0 0 0 Tennis courts 20 20 20 16 Sewer Sewage system Miles of Sanitary Sewer' 322 326 321 332 Miles of Storm Sanitary Sewer' 147 152 156 158 Number of treatment plants 1 1 1 1 Number of service connectors 23,119 23,343 23,423 23,488 Water systems Miles of water mains 329 337 370 410 Number of service connectors 22,970 23,343 23,546 23,605 Number of city owned fire hydrants 2,380 2,450 2,973 2,539 Sources:Various City Departments ' City GIS system Page 15�3'of 1594 TABLE 22 2020 2021 2022 2023 2024 2025 1 1 1 1 1 1 22 22 22 22 22 22 6 6 6 6 6 6 3 3 3 3 3 3 331 329 336 336 353 305 2,489 2,507 2,566 2,614 2,667 2,718 2 2 2 2 2 2 373 373 373 389 389 384 1 1 1 1 1 1 1 1 1 1 1 1 53 53 53 55 55 55 985 985 985 986 986 986 1 1 1 1 1 1 2 2 2 2 2 2 10 9 9 9 9 8 1 1 1 1 1 1 0 1 1 1 1 1 16 16 16 16 16 15 333 308 311 306 312 311 151 160 157 172 163 211 1 1 1 1 1 1 23,601 22,299 23,109 23,181 23,280 23,557 325 293 330 333 316 334 23,695 23,770 23,966 24,049 24,386 24,741 2,553 2,596 2,622 2,646 2,652 2,661 Page 15��of 1594 CITY OF DUBUQUE,IOWA RETAIL SALES TABLE 23 LAST TEN CALENDAR YEARS Taxable Number of Year Retail Sales Businesses 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 2024 1,633,313,956 2,511 2025 1,698,791,176 2,481 Data Sources: Iowa Department of Revenue Page 15��of 1594 Compliance Section June 30, 2025 City of Dubuque, Iowa Page 1516 of 1594 � MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH GOVERNMENT AUDITING STANDARDS To the Honorable Mayor and Members of the City Council City of Dubuque, lowa Dubuque, lowa We have audited, in accordance with the auditing standards generally accepted in the United States of America and the standards applicable to financial audits contained in Government Auditing Standards, issued by the Comptroller General of the United States, the financial statements of the governmental activities, the business-type activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund information of the City of Dubuque, lowa (the "City"), as of and for the year ended June 30, 2025, and the related notes to the financial statements, which collectively comprise the City's basic financial statements, and have issued our report thereon dated May 27, 2026. Our report includes a reference to other auditors who audited the financial statements of the Dubuque Initiative and Subsidiaries and 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 that are reported on separately by those auditors. 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 report ("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 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. MAULDIN&JENKINS,LLC•200 GALLERIA PARKWAY S.E.,SUITE 1700•ATLANTA,GEORGIA 30339-5946 770-955-8600•FAX 770-980-4489•www.mjcpa.com MEMBERS OF THE AMERICANINSTITUTE OF CERTIFIED PUBLICACCOUNTANTS Page 1517 of 1594 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. Given these limitations, during our audit, we did not identify any deficiencies in internal control that we consider to be material weaknesses. However, material weaknesses or significant deficiencies may exist that were not identified. 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. Purpose of this Report The purpose of this report is solely to describe the scope of our testing of internal control and the results of that testing, but not to provide an opinion on the effectiveness of the entity'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 report is not suitable for any other purpose. �� , �� Atlanta, Georgia May 27, 2026 � ,,� T �r Page 1518 of 1594 ', � T � MAULDIN&JENKINS CPAs & ADVISORS INDEPENDENT AUDITOR'S REPORT ON COMPLIANCE FOR EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER COMPLIANCE REQUIRED BY THE UNIFORM GUIDANCE To the Honorable Mayor and Members of the City Council City of Dubuque, lowa Dubuque, lowa Report on Compliance for Each Major Federal Program Opinion on Each Major Federal Program We have audited the City of Dubuque, lowa (the "City") 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, 2025.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 types of 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, 2025. 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("GAAS");the standards applicable to financial audits contained in GovernmentAuditing 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 the major federal programs. 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. MAULDIN&JENKINS,LLC•200 GALLERIA PARKWAY S.E.,SUITE 1700•ATLANTA,GEORGIA 30339-5946 770-955-8600•FAX 770-980-4489•www.mjcpa.com MEMBERS OF THE AMERICANINSTITUTE OF CERTIFIED PUBLICACCOUNTANTS Page 1519 of 1594 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, GovernmentAuditing 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, GovernmentAuditing 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. Page 1520 of 1594 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. 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. �� , �� Atlanta, Georgia May 27, 2026 Page 1521 of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30,2025 FederaL Subrecipient Federal Grantor/Pass-Through Grantor/Program or Cluster Title AL Number Pass-Through Grantor's Number Expenditures Expenditures U S.Department of Agriculture: Direct Programs: Branching Out Dubuque 10.727 24-DG11094200-049 $ 122,260 $ - Soi]and Water Conservation 10.902 NRCS-ADS-093 $ 3,095 $ - Urban Agriculture and Innovation Production Grant 10.935 USDA-NRCS-NHQ-UAIP-22- $ 100,961 $ - NOF0000178 Total U.S.Department of Agriculture 226,316 - U.S.Department of Commerce Direct Programs: Bee Branch Stormwater Pumping Station at the 16th Street Detention Basin 11.307 OS-79-06277 449,085 - Total U.S.Department of Commerce 449,085 - U.S.Department of Housing and Urban Development: Direct Programs: Community Development Block 14.218 B-20-MC-19-0004 312,435 - Community Development Block 14.218 B-21-MC-19-0004 199,714 - Community Development Block 14.218 B-22-MG19-0004 825,162 - Community Development Block 14218 B-23-MC-19-0004 525,154 - IEDA CDBGCV 14.218 20-CVE-004 2,955 - Total Community Development Block Grants Entitlement Grants Cluster 1,865,420 - Direct Programs: 2023 HOME Program-Tenant Based Rental Assistance 14.239 23-1-HM-524 21,436 - Sectio�8 Housi�g Choice Vouchers 14.871 ]A087V 8,475,888 - Family Self-Sufficiency Program 14.896 FSS211A3750-01-00 249,075 - 2021-2025 Lead and Healthy Homes 14.905 IALHB0773-21 1,454,348 - Healthy Homes Production 14.973 IAHHP0050-22 768,932 - Older Adults Home Modification 14.921 IALHM00]-21 24Q146 - Total U.S.Department of Housing and Urban Development 13,075,245 - U.S.Department of the I�terior FederaL Boating Infrastructure(Tier 1) 15.622 24CRDFBGSCHO-002 122,446 - Voelker Highlands Survey 202301-12217 15.904 202301-12217 7,000 - Deereville Survey 75.904 202301-12215 10,000 - Total U.S.Department of the Interior 139,446 - U.S.Department of Justice: Direct Programs: Anti-Heroin Task Force Grant 16.710 22-HEROIN-02 2,010 - Methamphetamine Drug Hot Spot Grant Program 16.710 21-CAMP-17 1,434 - COPS Hiring Grant 16.710 15JCOPS-22-GG-03392-UHPX 83,333 - FY24 Law Enforcement Menta]Health&WeLLness Act 16.710 15JCOPS-24-GG-01414-LEMH 27,721 - Methamphetamine Drug Hot Spots Grant Program ]6.770 24-CAMP-Ol 2,135 - Total Public Safety Partnership and Community Policing Grants 116,633 - Direct Programs: Edward Byrne Memorial Iustice Assistance Grant Program 16.738 22-IAG547391 37,500 - Edward Byrne Memorial Justice Assistance Grant Program 16.738 ]SPBJA-23-GG-03359-JAGX 23,217 - Total Public Safety Partnership and Community Policing Grants 60,717 - Total U.S.Department of Justice 177,350 - Page 15z�of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30,2025 Federal Subrecipient Federal Grantor/Pass-Through Grantor/Program or Cluster Title AL Number Pass-Through Grantor's Number Expenditures Expenditures U.S.Department of Transportation: Passed through Iowa Department of Transportation: Airportlmprovement Program 20106 3-19-0028-070-2021 772,428 - Airport Improvement Program 20.106 3-19-0028-072-2021 1,026,314 - Airportlmprovement Program 20106 3-19-0028-077-2023 70,112 - Airportlmprovement Program 20106 3-19-0028-078-2023 888,273 - Airport Improvement Program 20.106 3-19-0028-079-2024 1,733,809 - Airport Improvement Program 20.106 3-19-0028-081-2024 2,22Q518 - AirportlmprovementProgram 20106 3-19-0028-084-2025 330,698 - Total Airport Improvement Program Cluster 7,042,152 - Highway Planning and Construction 20205 ST-018 25,000 - Highway Planning and Construction 20205 F.DP-2100(704)--7Y-31 236,615 - Total Highway planning and Construction Cluster 261,615 - Federal Transit-Formula Grants 20.507 IA-2024-Ot] 56,756 - Federal Transit-Formula Grants 20.507 ]A-2025-011 1,456,460 - Total Federa]Transit CLuster 1,513,216 - Elderly and Persons with Disabilities Project 20.513 IA-2025-012-01-00-SFY25 45,560 - Total Enhanced Mobility of Seniors and Individuals with Disabilities 45,560 - Program CLuster State and Community Highway Safety 20.600 PAP 402-PT-2024 7,282 - State and Community Highway Safety 20.600 402-PT-2025 10,002 - Total State and Commu�ity Highway Safety 17,284 - Small Community Air Service Development Program 20.930 DOT-OST-2023-0037-0008 1,500,000 - Total SCASDP Payments for Small Community Air Service Development 1,SOQ000 - Rebuilding TransportaLion Infrastructure with Sustainability and Equity(RAISE) 20.933 EDP-2100(705)--7Y-31 289,601 - Total Rebuilding Transportation Infrastructure with Sustainability and 28g,607 - Equity(RAISE) Total U.S.Department of Transportation iQ669,428 - Page 15z�3r'of 1594 CITY OF DUBUQUE,IOWA SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30,2025 Federal Subrecipient Federal Grantor/Pass-Through Grantor/Program or Cluster Title AL Number Pass-Through Grantor's Number Expenditures Expenditures Environmental Protection Agency: Direct Programs: Community Grant for Granger Creek Lift Station Improvement 66.202 96711301 568,893 - 568,893 - Passed through Iowa Department of Environmental Management: Brownsfields Assessment and Cleanup Cooperative Agreements 66.818 BF-97768801 355,602 - 355,602 - Total Environmental Protection Agency 924,495 - U.S.Department of Treasury: Passed through Iowa Department of Finance: CORONAVIRUS STATE AND LOCAL FISCAL RECOVERY FUNDS 21.027 1505-0271 10,555,270 - Entry Level Driver Training Program 21.027 2023-010 4,94] - Destination Iowa Outdoor Recreation 21.027 203-DOR-011 1,683,426 - ]owa Commercia]Aviation Infrastructure Fu�d 21.027 CNTRT-00004235 2,508,407 - Total SLFRF Cluster 14,752,044 - Total U.S.Department of Treasury 14,752,044 - U.S.Food&Drug Administration: Track 2 DeveLopment Base Grant 93103 G-BDEV2-202308-04206 ]Q657 - Total U.S.Food&Drug Administration 70,657 - Americorps: Americorps 94.006 23-AC-10 43,577 - Americorps 94.006 24-AC-10 178,340 - Total Americorps 221,917 - Federal Emerge�cy Ma�agement Agency Disaster Grants-Public Assistance(Presidentially Declared Disasters) 97.036 4732DR-IA 35,945 - Bee Branch Stormwater Pumping Station at the 16th Street Detention Basin 97.143 LPDM-PJ-07-IA-2024-001 450,799 - Total Federal Emergency Agency 486,744 - TOTAL FEDERAL EXPENDITURES 41.132.727 Page 15��of 1594 NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS Page 15��of 1594 CITY OF DUBUQUE, IOWA NOTES TO SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 NOTE 1. BASIS OF PRESENTATION The Schedule of Expenditures of Federal Awards includes the federal grant activity of City of Dubuque, lowa (the "City") and is presented on the accrual basis of accounting. The information in this schedule is presented in accordance with the requirements of Title 2 U.S. Code of Federal Regulations ("CFR") Part 200 Uniform Administrative Requirements, Cost Principles, and Audit Requirements for Federal Awards ("Uniform Guidance"). Therefore, some amounts presented in this schedule may differ from amounts presented in, or used in the preparation of, the financial statements. NOTE 2. SUMMARY OF SIFNIFICANT ACCOUTING 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, 2025. 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. DE MINIMIS COST RATE The City elected not to use the 10% de minimis cost rate for the year ended June 30, 2025. NOTE 4. NON-CASH AWARDS There were no federal awards expended in the form of noncash assistance during the fiscal year. There were also no loans or loan guarantees outstanding at year-end. 198 Page 1526 of 1594 CITY OF DUBUQUE, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 SECTION I SUMMARY OF AUDIT RESULTS Financial Statements Type of auditor's report issued on whether the financial statements audited were prepared Unmodified in accordance with GAAP. Internal control over financial reporting: Material weaknesses identified? _Yes X No Significant deficiencies identified not considered to be material weaknesses? Yes X None Reported Noncompliance material to financial statements noted? Yes X No Federal Awards Internal Control over major programs: Material weaknesses identified? Yes X No Significant deficiencies identified not considered to be material weaknesses? Yes X None Reported Type of auditor's report issued on compliance for major programs. Unmodified Any audit findings disclosed that are required to be reported in accordance with the 2 CFR 200.516(a)? Yes X No 199 Page 1527 of 1594 CITY OF DUBUQUE, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 SECTION I SUMMARY OF AUDIT RESULTS (CONTINUED) Identification of major programs: AL Number Name of Federal Proqram or Cluster U.S. Department of Treasury: 21.027 COVID-19—Coronavirus State and Local Fiscal Recovery Funds U.S. Department of Transportation: 20.930 Payments for Small Community Air Service Development U.S. Department of Housing and Urban Development: 14.905 Lead Hazard Reduction Demonstration Program Dollar threshold used to distinguish between Type A and Type B programs: $1,233,982 Auditee qualified as low-risk auditee? _Yes X No 200 Page 1528 of 1594 CITY OF DUBUQUE, IOWA SCHEDULE OF FINDINGS AND QUESTIONED COSTS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 SECTION II FINANCIAL STATEMENT FINDINGS AND RESPONSES None reported. SECTION III FEDERAL AWARDS FINDINGS AND QUESTIONED COSTS None reported. 201 Page 1529 of 1594 CITY OF DUBUQUE, IOWA SUMMARY SCHEDULE OF PRIOR YEAR FINDINGS FOR THE FISCAL YEAR ENDED JUNE 30, 2025 STATUS OF PRIOR YEAR AUDIT FINDINGS None reported. 202 Page 1530 of 1594 CITY OF DUBUQUE, IOWA OTHER FINDINGS RELATED TO REQUIRED STATUTORY REPORTING FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Reference Number Findinq 2025-IV-A Certified Budget - Disbursements during the year ended June 30, 2025 exceeded the amount budgeted in the community and economic development function. Chapter 384.20 of the Code of lowa states, in part, "Public monies may not be expended or encumbered except under an annual or continuing appropriation." Recommendation — The budget should have been amended in accordance with Chapter 384.18 of the Code of lowa before disbursements were allowed to exceed the budget. Response—Due to additional unbudgeted grant expenditures,the City exceeded budget in health and social services. The budget will be amended in the future, if applicable. Conclusion—Response accepted. 2025-IV-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. 2025-IV-C Travel Expenses- No expenditures of City money for travel expenses of spouses of City officials or employees were noted. 2025-IV-D Business Transactions- No business transactions between the City and City Officials or employees were noted. 2025-IV-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 lowa. 2025-IV-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. 203 Page 1531 of 1594 CITY OF DUBUQUE, IOWA OTHER FINDINGS RELATED TO REQUIRED STATUTORY REPORTING FOR THE FISCAL YEAR ENDED JUNE 30, 2025 Reference Number Findin� 2025-IV-G City Council Minutes - No transactions were found that we believe should have been approved in the City Council minutes but were not. 2025-IV-H Deposits and Investments-No instances of non-compliance with the deposit and investment provisions of Chapters 12B and 12C of the Code of lowa and the City's investment policy were noted. 2025-IV-I Revenue Notes - No instances of non-compliance with revenue note provisions were noted. 2025-IV-J Annual Urban Renewal Report-The Annual Urban Renewal Report was properly approved and certified to the lowa Department of Management on or before December 1. 2025-IV-K Separately Maintained Records-Chapter 384.20 of the Code of lowa 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, 2025-IV-L Financial Condition -At June 30, 2025, the City had the following funds with deficit fund balances: Airport Construction Fund $ (2,342,146) Refuse Fund (273,424) General Service Fund (358,126) Garage Ser�ice Fund (189,970) Stores/Printing Fund (5,934) 2025-IV-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 455B.310 of the Code of lowa by the Dubuque Metropolitan Area Solid Waste Agency, a component of the City, were noted. 2025-IV-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 lowa Administrative Code. 204 Page 1532 of 1594