Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ending Copyright 2014
City of Dubuque Action Items # 1.
ITEM TITLE: Comprehensive Annual Financial Report (CAFR) for Fiscal Year Ending
June 30, 2014 and Auditor's Presentation
SUMMARY: City Manager transmitting the Fiscal Year 2014 Comprehensive Financial
Report (CAFR), Auditor's Communication with Those Charged with
Governance Letter, the City Finance staff responses to auditor's findings
and Eide Bailly CPA Audit Partner Dave Cahill's presentation.
SUGGESTED DISPOSITION: Suggested Disposition: Receive and File; Make Matter of Record
ATTACHMENTS:
Description Type
❑ Submission of Fiscal Year Ended June 30,2014 CAFR-MVM Memo City Manager Memo
Submission of Fiscal Year Ended June 30,2014 Comprehensive Annual
❑ Financial Report(CAFR)and Auditor's Communication with Those Staff Memo
Charged with Governance and City Responses to Findings
❑ CAFR Supporting Documentation
❑ Auditor's Communication with Those Charged with Governance Latta Supporting Documentation
❑ Responses to Auditors Findings Supporting Documentation
THE CITY OF Dubuque
UBE I
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Masterpiece on the Mississippi 2007-2012-2013
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2014 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance and City Responses to Findings
DATE: December 29, 2014
Finance Director Ken TeKippe is transmitting the Fiscal Year 2014 Comprehensive
Financial Report (CAFR), Auditor's Communication with Those Charged with
Governance Letter, along with the City Finance staffs responses to auditor's findings.
The City's independent auditor issued an unqualified opinion on the financial
statements.
Eide Bailly CPA Audit Partner Dave Cahill will make a presentation to City Council.
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Micliael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Ken TeKippe, Finance Director
THE CITY OF Dubuque
AII11-America CiI.ty
UB E1
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Submission of Fiscal Year Ended June 30, 2014 Comprehensive Annual
Financial Report (CAFR) and Auditor's Communication with Those
Charged with Governance and City Responses to Findings
DATE: December 23, 2014
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2014 CAFR audited by
Eide Bailly, LLP, Auditor's Communication with Those Charged with Governance Letter
along with the City Finance staff's responses to auditor's findings. The City's
independent auditor issued an unmodified opinion on the financial statements.
BACKGROUND
Iowa state code requires an annual audit by independent certified public accountants or
the State Auditor. In addition to meeting the requirements set forth in state statues, the
audit also was designed to meet the requirements of an annual single audit in
conformity with the U.S. Office of Management and Budget Circular A-133, Audits of
States, Local Governments and Non-Profit Organizations.
This Comprehensive Annual Financial Report is in conformance with the standards set
by OMB Circular A-133. This federal regulation mandates audit standards for federal
programs.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
and fiduciary fund financial statements. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting.
Separate financial statements are required for Dubuque Metropolitan Area Solid Waste
Agency, Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors
Bureau (CVB) and have been received. The financial information for these entities is
included in the City of Dubuque CAFR.
AUDITOR'S COMMUNICATION with THOSE CHARGED with GOVERNANCE
Included is a separate letter from Eide Bailly, LLP. The letter contains audit information
required by auditing standards to be communicated to the Mayor and City Council.
ACTION STEP
It is recommended that the City Council receives and files the Fiscal Year 2014 reports
identified above and receives and files this communication and related enclosures.
Copies of the financial statements for the Dubuque Metropolitan Area Solid Waste
Agency are available in the Finance Department if desired by Council members.
Dave Cahill, audit partner in charge from Eide Bailly CPA's, will make a brief
presentation at the City Council meeting and be available for any questions. Finance
staff will also be attending the meeting.
KT/e m I
Enclosures: Fiscal Year 2014 CAFR
Auditor's Communication with Those Charged with Governance Letter
Responses to Auditor's Findings
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Masterpiece on the Mississippi
About the Cover:
The recently reconstructed Water & Resource Recovery Center
is the largest single capital improvement project for the City
of Dubuque at $65,000,000. In addition to the W&RRC project
a Co-Generation Combined Heat and Power (CHP) project was
added for $3,000,000. The Co-Gen project allows the methane
generated in the new anaerobic digesters to be used to generate
electricity from three 200kw microturbines. The electricity produced
by the turbines will provide for 75-85% of the electrical needs of
the W&RRC, saving the citizens of Dubuque over $200,000 per
year, while putting what was once a waste into productive use.
The heat from the combustion of the methane is then also used to
heat portions of the W&RRC and provide heat for the operation of
the digesters. Along with the new digestion complex and
microturbines all areas of the facility were reconstructed, repaired
or replaced. This project will provide wastewater treatment
capacity for both residential growth and industrial expansion for the
City of Dubuque for many years to come.
Photo by:
Erich Moeller
Cover design by:
Kelli Buchenau
Copy provided by:
Jonathan Brown
Comprehensive Annual Financial Report
June 30, 2014
City of Dubuque, Iowa
Prepared by:
Department of Finance
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Introductory Section
June 30, 2014
City of Dubuque, Iowa
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CITY OF DUBUQUE, IOWA
Table of Contents
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 7-8
Letter of Transmittal 9-16
City Organizational Chart 17
Officials 18
Certificate of Achievement for Excellence in Financial Reporting 19
FINANCIAL SECTION
Independent Auditor's Report 23-25
Management's Discussion and Analysis 27-36
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Position 1 38-39
Statement of Activities 2 40
Fund Financial Statements
Balance Sheet—Governmental Funds 3 42
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 3-1 43
Statement of Revenues,Expenditures, and Changes in Fund
Balances —Governmental Funds 4 44
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4-1 45
Statement of Net Position—Proprietary Funds 5 46-49
Statement of Revenues,Expenses, and Changes in Fund Net Position
—Proprietary Funds 6 50-51
Statement of Cash Flows—Proprietary Funds 7 52-55
Statement of Fiduciary Assets and Liabilities —Agency Funds 8 56
Notes to Financial Statements 57-94
Required Supplementary Information
Schedule of Receipts,Expenditures, and Changes in Balances —Budget
and Actual (Budgetary Basis)—Governmental Funds and Enterprise Funds 97
Note to Required Supplementary Information—Budgetary Reporting 98
Schedule of Funding Progress for the Retiree Benefit Plan 99
Combining Fund Statements
Combining Balance Sheet—Nonmajor Governmental Funds A-1 102-104
Combining Statement of Revenues,Expenditures, and Changes in
Fund Balances—Nonmajor Governmental Funds A-2 106-108
Combining Statement of Net Position—Nonmajor Enterprise Funds B-1 110
Combining Statement of Revenues,Expenses, and Changes in Fund Net
Position—Nonmajor Enterprise Funds B-2 111
Combining Statement of Cash Flows—Nonmajor Enterprise Funds B-3 112-113
Combining Statement of Net Position—Internal Service Funds C-1 116-117
Combining Statement of Revenues,Expenses, and Changes in Fund Net
Position(Deficit)—Internal Service Funds C-2 118-119
Combining Statement of Cash Flows—Internal Service Funds C-3 120-121
Combining Statement of Changes in Assets and Liabilities—Agency Funds D-1 123
CITY OF DUBUQUE, IOWA
Table of Contents
Table Page
STATISTICAL SECTION(Unaudited)
Statistical Section Contents 127
Financial Trends
Net Position by Component 1 128-129
Changes in Net Position 2 130-133
Fund Balances of Governmental Funds 3 134-135
Changes in Fund Balances of Governmental Funds 4 136-137
Revenue Capacity
Taxable and Assessed Value of Property 5 138
Property Tax Rates—Direct and Overlapping Governments 6 139
Principal Property Taxpayers 7 140
Property Tax Levies and Collections 8 141
Debt Capacity
Ratios of Outstanding Debt by Type 9 142-143
Ratios of General Bonded Debt Outstanding 10 144
Direct and Overlapping Governmental Activities Debt 11 145
Legal Debt Margin Information 12 146-147
Revenue Debt Coverage 13 148
Water and Sewer Receipt History 14 149
Water Meters by Rate Class 15 150
Largest Water and Sewer Customers 16 151
Demographic and Economic Information
Demographic and Economic Statistics 17 152
Principal Employers 18 153
Operating Information
Full-Time Equivalent City Government Employees by
Function/Department 19 154-155
Operating Indicators by Function/Program 20 156-157
Capital Asset Statistics by Function 21 158-159
Retail Sales 22 160
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 163-164
Independent Auditor's Report on Compliance with Requirements for Each Major Program and
on Internal Control Over Compliance Required by with OMB Circular A-133 165-166
Schedule of Expenditures of Federal Awards 167-171
Notes to the Schedule of Expenditures of Federal Awards 172
Schedule of Findings and Questioned Costs 173-178
Corrective Action Plan 179
Summary Schedule of Prior Federal Audit Findings 180
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Dubuque Finance 13' Street
THE CITY OF � Finance
West 13r Street
R AN MMeaq Dubuque,Iowa 52001-4805
DUB E Offi(563)690-668133
Fax(563)690-6689
TTY(563)690-6678
Masterpiece 011 the Mississippimm.mu,mi> finmce@cilyofdubuque.ocg
www.cilyofdabuqueocg
December 18, 2014
Honorable Mayor, City Council Members, and
Citizens of the City of Dubuque
The Comprehensive Annual Financial Report(CAFR)ofthe City of Dubuque, Iowa, for the fiscal year
ended June 30, 2014, is hereby submitted as required by various state and federal regulations.
Responsibility for both the accuracy ofthe data and the completeness and fairness of the presentation,
including all disclosures,rests with the City. To the best of our knowledge and belief,the enclosed data is
accurate in all material respects, and is reported in a manner designed to present fairly the financial
position and results of operations ofthe various funds and activities ofthe City. All disclosures necessary
to enable the reader to gain an understanding ofthe City's financial operations have been included.
State code requires an annual audit by independent certified public accountants or the State Auditor. The
accounting firm of Eide Bully LLP conducted the audit for fiscal year 2014. In addition to meeting the
requirements set forth in state statutes,the audit also was designed to meet the requirements of an annual
single audit in conformity with the U.S. Office of Management and Budget Circular A-133,Audits of
States, Local Governments and Non-Profit Organizations. Information related to this single audit,
including the Schedule of Expenditures ofFederal Awards, findings and recommendations, and the
auditor's report on internal control over financial reporting and compliance with requirements applicable
to laws,regulations, contracts, and grants, are included in the Compliance Section of this report. The
independent auditors' report is included in the Financial Section of this report.
This report includes all funds ofthe City of Dubuque, as well as its component units. Component units
are legally separate entities for which the City of Dubuque is financially accountable. The City provides a
full range of services including police and fire protection, sanitation services,the construction and
maintenance ofroads, streets, and infrastructure,inspection and licensing functions,maintenance of
grounds and buildings,municipal airport, library, recreational activities and cultural events. In addition to
general government activities, the municipality owns and operates enterprises for a water system, water
resource and recovery center, storm water system, parking facilities,refuse collection and public
transportation.
This report includes the Dubuque Metropolitan Area Solid Waste Agency(DMASWA),Dubuque
Initiatives and Subsidiaries, and the Dubuque Convention and Visitors Bureau(CVB) 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 of
Dubuque appoints a voting majority to the DMAS W A goveming board and operates the landfill.
Dubuque Initiatives is organized to render service to the City Council ofthe City of Dubuque, Iowa on
matters of community interest, and in the event of dissolution, any assets or property of the organization
are transferred to the City. In 2009,the City of Dubuque guaranteed debt issued by Dubuque Initiatives
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and Subsidiaries. In fiscal year 2014 The Dubuque Convention and Visitor Bureau(CVB), formerly part
of the Dubuque Area Chamber of Commerce, was established as a separate non-profit corporation.
Dubuque Convention and Visitors Bureau's purpose is to strengthen the Dubuque area economy by
competitively marketing the area as a destination for conventions, tour groups, sporting events and
individual travelers. The Organization's board members include one City Council member, the City of
Dubuque Mayor and the City Manager. In the event of dissolution, any assets or property of the
Organization shall be transferred to the City. The City collects hotel/motel taxes and forwards 50%to the
CVB 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 is located on the Mississippi River in northeast Iowa, adjacent to the states of
Illinois and Wisconsin. Julien Dubuque began mining lead in the area now known as Dubuque in 1788.
Dubuque is the oldest city in Iowa and has a unique combination of the old and new, ranging from cable
cars, Victorian architecture, and a Civil War era shot tower, to an enclosed shopping mall, two casinos,
one with a pari-mutuel dog track and the Smithsonian-affiliated National Mississippi River Museum and
Aquarium. The City of Dubuque currently has a land area of 31.8 square miles, and a census 2010
population of 57,637. As the largest city in the tri-state area, Dubuque serves as the hub of a trade area
with a population estimated at 250,000.
Dubuque has a stable and diversified economic base and is the major tri-state retail center. As of August
2014, the City unemployment rate was 4.4%and County rate was 4.2%, below the 4.6%state and 6.1%
national unemployment rates.
The City of Dubuque is empowered to levy a property tax on real property located within the City limits.
The City has operated under a Council-Manager form of government since 1920. Policymaking and
legislative authorities are vested in the governing council, which consists of a mayor and a six-member
council. The Mayor is elected to a four-year term. The Council is elected on a non-partisan basis. Council
members are elected to four-year staggered terms with three council members elected every two years.
Four of the council members are elected within their respective wards; the mayor and the two remaining
council members are elected at large. The governing Council is responsible for, among other things,
setting policy, passing ordinances, 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 governrnent, 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
Dubuque has a diverse employer base including manufacturing, software, health services, insurance,
education and government. The top 10 employers in the area employ less than 20%of the total
workforce. This insulates the City from the negative impact on a downturn in any one area of the
economy.
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Several trade and business publications have recognized the City's efforts to diversify its economy.Area
Development magazine named Dubuque one of the "Top 100 Leading Locations" for 2014, ranking it
21st in the U.S. Also in 2014, Site Selection magazine named Dubuque the "Top Metro in the U.S."
among metros with populations of 50,000-200,000 for number of economic development projects. In
August 2014, SmartAsset.com named Dubuque one of the "10 Best American Cities to Work in
Technology." This ranking was based on pay for tech workers, percentage of tech workers in the
workforce (representing high levels of opportunity in the field), and low cost of living indices. The
Milken Institute named Dubuque 2013's 10th Best-Performing Small Metro in December 2013, saying
Dubuque's secrets to its success are five-year high-tech GDP growth and improvements in one- and five-
year job and wage growth. In August 2013, Dubuque was ranked 14th in the nation in Forbes' annual
"Best Small Places for Business and Careers." According to Iowa Workforce Development, 10 percent of
Iowa's non-farm employment growth over the last four years (2010-2013) occurred in Dubuque, which
has just three percent of the state's population.
The City's continual development in its industrial parks has not only attracted new industries but,just as
importantly, retained existing businesses.
Dubuque Industrial Center West(DICW)
Over 550 saleable acres were acquired in 1997. Since then 21 local business expansions and 4 new
industries have located in the park. In 2014, Theisen's distribution center completed an 80,000 square
foot expansion and the Tri-State Quality Metal 45,000 square foot plant is under construction.
The Dubuque Technology Park
Located on the south side of the City is a 100-acre park designed to accommodate growing office
businesses. Eight businesses have located in the park. In 2014, Rockfarm Holdings began constructing
their new headquarters. The office building is 14,000 square feet. Kunkel and Associates is pursuing
incentives that would facilitate a $2.5 million, 20,000 square foot expansion to its Dubuque facilities in
spring 2015. The expansion would add 16 new jobs.
Over $100 million has been spent in the downtown area, where more than 9,000 people work. Thirteen
hundred IBM employees work on five renovated floors of the nine-story Roshek Building and Heartland
Financial relocated existing staff to the third floor of the building.
The Schmid Innovation Center, a $28 million private renovation project in the Millwork District, received
two awards of $3 million and $5.9 million in CDBG funds to develop workforce housing. The 72-unit
residential project was completed in September 2012. Nonprofits have moved into the basement space.
Several commercial tenants occupy the first floor. A food co-op, located on the first floor, opened in the
spring 2014. The first floor will be fully-occupied by early 2015. Renovation of 76 residential units in the
Novelty Iron Works building is underway.
Commercial development continues with the October 2014 opening of a new 114,000 square foot Blain's
Farm&Fleet retail store. Spahn and Rose Lumber has begun construction of a new warehouse and
showroom that together total 93,000 square feet. New retail stores that have opened or are under
construction include Kwik Star, Fazoli's, McGrath Automotive Group, Cato Fashions and Mens
Warehouse.
UnityPoint Health Finley Hospital has begun a $42 million three-story 70,000 square foot addition that
will house the Finley Heart and Vascular Center, and new emergency and surgery departments. The new
facility will be built on the west side of the current hospital structure facing Grandview Avenue. The
expected date of completion for the new facility is December 2015
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The University of Dubuque began construction on a new intramural/practice facility and its new four-
story Chlapaty Residence Hall opened in the fall of 2014. Loras College enters into Phase II of the $4
million Loras Parkway. This phase will expand into fall 2015 and includes a new Welcome Center
featuring Einstein Bros. ®Bagels at the corner of Loras Boulevard. Breaking ground in the spring, the
$825,000, approximately 4,000 square-foot facility will provide a space where Dubuque community
members can converge, while enjoying food and friendship. The Loras Parkway project began in 2010
when Loras College purchased a section of Cox Street from the City of Dubuque. Since then, Loras
Parkway has transformed into a pedestrian walkway and common area where students, faculty and the
Dubuque community can converge. Once completed, Loras Parkway will bridge upper and lower campus
by providing a scenic welcome plaza, retail building, water feature and a Veteran's memorial
commemorating Loras College veterans.
The City's recent awards and recognition from a variety of sources include:
• The U.S. Environrnental Protection Agency (EPA) awarded Dubuque its 2013 Smart Growth
Achievement Award for Corridor or Neighborhood Revitalization for work done in Dubuque's
Historic Millwork District and Washington Neighborhoods. (February 2014)
• Kiplinger's Personal Finance named Dubuque one of"10 Great Places to Live" for 2013. (July
2013)
• Dubuque was ranked 14th in the nation in Forbes' annual "Best Small Places" (August 2013)
• Forbes placed Dubuque 50th of 179 small cities for the Cost of Doing Business (August 2013)
• The America's Promise Alliance named Dubuque one of its 100 Best Places for Young People
for 2012. Dubuque received this distinction in 2007, 2008, 2010, and 2011. (September 2012)
• Dubuque was named a 2013 All-America City by the National Civic League for a community
initiative to improve grade-level reading. This is the third time Dubuque has received this
recognition. (July 2013)
• Dubuque was ranked#4 among Overall Metros with the Biggest Average Annual Increases in
Wages and Salaries in 2012's "America's Best Places for a Raise." (September 2012)
• Area Development magazine's 2012 Leading Locations report ranked Dubuque in five
categories: #16 among the Top 100 Overall Cities, #3 among the Top 20 Midwest Cities, #7
among the Top 50 Small Cities, #6 among the Top 25 Small Cities in Economic Strength
Factors, and#8 among the Top 25 Small Cities in"Recession Busting" Factors. (June 2012)
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the Mayor and City Council,
has been involved in a variety of projects throughout the year. These projects reflect the City's
commitment to continue to provide high quality services to the citizens of Dubuque within the budget
guidelines set by the Mayor and City Council.
The Dubuque Regional Airport began construction in Fall 2012 of the New Airline Passenger Terminal
Facility and the Aircraft Parking Apron, while continuing the effort to meet current and forecasted
passenger demand for Dubuque and the surrounding communities. This project element is scheduled to
be completed in 2014. The final remaining phase of construction is the entryway, circulation road, and
parking lot. The Federal Aviation Administration is programming funds in 2015 and 2016 for this project
element.
At the request of FAA, the various design phases associated with the development of the new Passenger
Terminal Facility (site work and building-related) that were programmed throughout the project have
been moving forward. It is expected that approximately 84 percent of the project costs will be funded by
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Airport Improvement Program grants issued through the Federal Aviation Administration. Other funds
through the state and locally generated passenger facility charges continue to be utilized for this project
The Dubuque Regional Airport received its 24th consecutive year of perfect compliance with Federal
Aviation Regulation (FAR) Part 139. FAR Part 139 governs safety standards for airfield operations and
airfield maintenance at airports served by commercial airlines. The Dubuque airport meets or exceeds all
federally mandated standards, rules, and policies which promote safety at all commercial airports. No
other airport in the country has a perfect FAR Part 139 safety compliance for a consecutive 24-year
period.
The City continues to implement components of the Drainage Basin Master Plan adopted in 2001 and
amended in 2013. Improvements in the North Fork Catfish Creek Drainage Basin have been addressed
with expanded detention along the Northwest Arterial and conveyance improvements along the North
Fork Catfish Creek between the Northwest Arterial and Pennsylvania Avenue. And the City continues to
implement the various phases of the Bee Branch Watershed Flood Mitigation Project to address flooding
in the Bee Branch Drainage Basin.
The Bee Branch Watershed Flood Mitigation Project is a multi-phased investment to mitigate flooding,
improve water quality, stimulate investment, and enhance quality of life within the Bee Branch
Watershed.
As part of the project, the City will convert all 240 alleys in the Bee Branch Watershed to "green alleys"
which features permeable concrete pavers. These specially designed pavers allow water to pass through
the surface and filter into the soil below. The green alleys are expected to reduce the amount of storm
water run-off in the watershed by up to 80 percent and prevent flooding. In addition to reducing storm
water run-off, the green alleys will replenish ground water and help prevent pollutants on roadways from
running off into the storm sewer system, and ultimately, the Mississippi River. Twenty-four alleys are
expected to be completed in 2014, with 50 planned for 2015.
The $70 million renovation of the Water and Resource Recovery Center (W&RRC) was completed in
2013. The facility is currently operating at 65 percent capacity. It features methane production/capture
and co-generation to produce electricity and create heat for the operation of the facilities. The W&RRC is
expected to be electrically self-sufficient within a few years and will save $250,000 in annual energy
expenses. It now better serves local industries by accepting high-strength waste. The project is more
environrnentally friendly than the former waste incineration. The projects are funded by state revolving
loan funds repaid with sanitary sewer user fees.
The City of Dubuque's Transit Division's $12 million Intermodal Transportation Facility is being
constructed to provide vital transportation connections required for the success of existing investments
and will be instrumental in leveraging additional investments required to achieve the long-term goals for
downtown Dubuque. The centralized transportation hub will connect automobile, bus, and pedestrian
traffic, while increasing demand for alternative transportation modes. The County and School District will
benefit from the center, as it provides various transportation options for Millwork District and
Washington Neighborhood residents, as well as visitors and downtown employees, spurring economic
development in the District. Part of the project will be funded with an $8 million grant from the U.S.
Federal Transit Administration. A $4.2 million renovation of the former public works building will house
the bus maintenance center. The projects are scheduled for completion in 2015.
Transit ridership is up 28% in the last five years. Route restructuring in January 2014, including
crosstown Express service, new service areas, and extended service hours, has led to continuing ridership
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growth for Dubuque's transit system. October 2014 marked a record month for transit ridership in
Dubuque at 51,542 rides, a 16.5 percent increase from rides provided in October 2013. Rides in fiscal
year 2014 total 478,370.
In 2013, the City of Dubuque and the Dubuque Metropolitan Area Transportation Study (DMATS)
successfully negotiated the transfer of the Southwest Arterial project to the Iowa Department of
Transportation(IDOT). The IDOT, DMATS, Dubuque County, and the City of Dubuque have budgeted
over $100 million to build the Southwest Arterial over the next five years.
Following the completion of the Southwest Arterial in 2019, the project has the potential to generate $80
million in property taxes, $1.67 billion in economic output, $653 million in labor income, and $1.02
billion in value added from 2021 to 2030. The Southwest Arterial will also annually generate $135
million in state and local taxes and $130 million in federal tax from new economic development, as well
as save $30 million for the 10-year period. This project will also generate $16 million in property tax,
$304 million in economic output, $24 million in state and local taxes, and $24 million in federal taxes due
to economic development, in addition to $3 million in safety savings from 2030 onwards. Side benefits
include removing over 500 trucks a day from downtown streets and encouraging redevelopment on
Central Avenue and White Street. Almost 1,000 trucks per day will be removed from Highway 20/Dodge
Street. Additional traffic will be removed from Kelly Lane, Fremont Avenue, Cedar Cross Road,
Rockdale Road, and other residential streets.
For the Future. The Mayor and City Council will continue to take action to achieve their goals of
maintaining a strong local economy, sustaining stable property tax levies, and enhancing the safety and
security of citizens through neighborhood vitality. The City staff will work to implement the City
Council's vision that Dubuque is a "Masterpiece on the Mississippi." A program of comprehensive
service reviews has continued as a vehicle for analyzing City services, identifying opportunities for
improvement, and determining areas of possible cost reductions. The goal of the service review program
is to ensure that services desired by the citizens are provided in the most cost effective and efficient
method possible. The City Council's goals for the next five years and beyond include the following:
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity: Transportation and Communications
• Economic Prosperity
• Social/Cultural Vibrancy
• Environmental/Ecological Integrity
FINANCIAL INFORMATION
Internal Controls. City management is responsible for establishing and maintaining internal controls to
ensure that the assets of the governrnent are protected from loss, theft, or misuse, and to ensure that
adequate accounting data is compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal controls are designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes
that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City of Dubuque's government
is responsible for ensuring that adequate internal controls are in place to ensure compliance with
applicable laws, regulations, contracts, and grants related to those programs. These internal controls are
subject to periodic evaluation by management.
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As a part of the City's single audit described earlier, tests are made to determine the adequacy of internal
controls, including that portion related to federal programs, as well as to determine that the government
has complied with applicable laws, regulations, contracts, and grants. The results of the government's
single audit for the fiscal year ended June 30, 2014, provided no instances of material weaknesses in
internal control over compliance, or significant violations of applicable laws, regulations, contracts, and
grants. Additional information is provided in the Schedule of Findings and Questioned Costs.
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 agency funds are included in the annual budget process. The
level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated
amount) is established by state programs. The government also maintains an encumbrance accounting
system as one technique for accomplishing budgetary control. Encumbered amounts lapse at year-end;
however, encumbrances generally are re-appropriated as part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
Cash Management. Cash temporarily idle during the year was invested in demand deposits, certificates
of deposit, federal agency obligations, and authorized mutual funds. The City (including DMASWA)
received cash basis investment earnings of$530,990 for the year.
The investment policy adopted by the City Council stresses the importance of capital preservation. The
policy directives intend to minimize credit and market risks while maintaining a competitive yield on the
portfolio.
Risk Management. The City of Dubuque is a member of a statewide risk pool for local governments, the
Iowa Communities Assurance Pool (ICAP). The coverage for general and auto liability, as well as public
official and police professional liability are acquired through this pool. Worker's compensation coverage
up to $500,000 for each accident is provided through self-insurance. The accumulated reserve provision
for such claims reflected a $436,971 deficit as of June 30, 2014. A provision for a large number of claims
were accrued at fiscal year-end with funds to cover payment available in next fiscal year. The City has
also established a self-insurance plan for medical, prescription drug, and short-term disability. The
accumulated reserve provision for such claims equaled $1,250,733 as of June 30, 2014. All self-insured
health plans are certified as actuarially sound and certificates of compliance have been filed with the State
of Iowa.
Bond Rating. Moody's Investor Service reaffirmed the City's Aa2 rate on the Series 2014 A, B, and C,
which reflects the City's sizable tax base and role as a regional economic center in northeastern Iowa; a
trend of strong employment growth which is projected to continue; recent declines in fund balance and
cash reserves which are expected to stabilize at healthy levels going forward; high debt burden with
additional borrowing planned; and moderate exposure to unfunded pension liabilities. The City's revenue
bonds are rated Aa3.
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.
15
AWARDS AND ACKNOWLEDGEMENTS
Awards. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Dubuque,
Iowa, for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2013. This was
the 26th consecutive year that the City has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government unit must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement program
requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.
GFOA also awarded a Certificate of Recognition for Budget Preparation to the City of Dubuque, Iowa,
for its annual budget for the fiscal year ended June 30, 2015. 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 9th consecutive
year that the City has achieved this prestigious award. This award is valid for a period of one year.
The City of Dubuque's investment policy was awarded the Certification of Excellence in July 2009 by the
Association of Public Treasurers of the United States and Canada. The investment policy is reviewed
every five years by the APT US&C. The City plans to resubmit the investment policy for review in 2015.
Acknowledgments. The preparation of this report could not be accomplished without the efficient and
dedicated services of the entire Finance Department staff. We also thank the Mayor and City Council for
their interest and support in planning and conducting the financial operations of the City of Dubuque in a
responsible and progressive manner. We also thank the independent certified public accountants, Eide
Bailly LLP, whose competent assistance and technical expertise have enabled the production of this
report.
Sincerely,
/
Michael C. Van Milligen Kenneth J. TeKippe, CPA
City Manager Finance Director
16
CITY OF DUBUQUE ORGANIZATIONAL CHART
Citizens
City Attorney H
City Council City Clerk
Library Airport
Assistant City Manager(2) City Manager Public Information Officer
Cab1eTV G og<aphic
Personnel Manager Information
sys[ans
Sustainable Community
Coordinator Neighborhood
Development Specialist
Budget Director
s�mramaget
Analyrt
Building Economic Emergency Finance Fire Health Housing 8- Human Information
Services Development Communications Department Department Services Community Rights Services
Department Department Department Department Development Department Department
Parking Div6wn Ambulance Training&
Services Workforce
Developrewn[
TransRDivisi®
Emergency Human Relations
Arcs Cooramamr Managan®[
Coortlma[or
Leisure Public Works Planning Police Engineering Water Water&
Services Department Services Department Department Department Resource
Department Department Recovery Center
CivicCeutu Park
Recreation GranaRiver
Cater
Multicalbrral
Family Cmter
17
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30,2014
CITY COUNCIL
Roy D. Buol Mayor
Ric W. Jones Council Member—At Large
David T. Resnick Council Member—At Large
Kevin J. Lynch Council Member— 1st Ward
Karla A. Braig Council Member—2nd Ward
Joyce E. Connors Council Member—3rd Ward
Lynn V. Sutton Council Member-4th Ward
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen City Manager
Barry A. Lindahl City Attorney
Crenna M. Brumwell-Sahm Assistant City Attorney
Maureen A. Quann Assistant City Attorney
Kevin S. Firnstahl City Clerk
DEPARTMENT MANAGERS
Robert A. Grierson Airport Manager
Therese H. Goodmann Assistant City Manager
Cynthia M. Steinhauser Assistant City Manager
Jenny M. Larson Budget Director
Richard R. Russell Building Services Manager
Gus N. Psihoyos City Engineer
Maurice S. Jones Economic Development Director
Kenneth J. TeKippe Finance Director
E. Daniel Brown Fire Chief
Mary Rose Corrigan Health Services Manager
Alvin L. Nash Housing and Community Development Manager
Kelly R. Larson Human Rights Director
Randall K. Peck Personnel Manager
Christine A. Kohlmann Information Services Manager
Marie L. Ware Leisure Services Manager
Susan A. Hemicks Library Director
Donald J. Vogt Public Works Director
Laura B. Carstens Planning Services Manager
Mark M. Dalsing Police Chief
Mary L. Knopick Senior Budget Analyst
Robert M. Green Water Department Manager
Jonathan R. Brown Water&Resource Recovery Center Manager
18
Government Finance Officers Association
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2013
Executive Director/CEO
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20
Financial Section
June 30, 2014
City of Dubuque, Iowa
21
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22
Eid�lly.
CPAs&BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa as of and for the year ended June 30, 2014, and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
Our responsibility is to express opinions on these financial statements based on our audit. We did not
audit the financial statements of Dubuque Initiatives and Subsidiaries, which represent 78 percent,
72 percent, and 47 percent of the assets, net position, and revenues of the aggregate discretely presented
component units. Those financial statements were audited by other auditors whose report thereon has
been furnished to us, and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives
and Subsidiaries, is based on the report of the other auditors. We conducted our audit in accordance with
auditing standards generally accepted in the United States of America and the standards applicable to
financial audits contained in Government-4udifing Standards, issued by the Comptroller General of the
United States. Those standards require that we plan and perforin the audit to obtain reasonable assurance
about whether the financial statements are free from material misstatement. The financial statements of
Dubuque Initiatives and Subsidiaries and Dubuque Convention and Visitors Bureau, discretely presented
component units, were not audited in accordance with GavernmentAuditing Standards.
www.eidebailly.com
23
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 1563.556.1790 1 F 563.557.7842 1 EOE
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business-type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of Dubuque, Iowa, as of June 30, 2014,
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.
Emphasis of Matter
During the year ended June 30, 2014, the City adopted GASB 65,Items Previously Reported asAssets
and Liabilities. The adoption of this statement resulted in the reclassification of items previously reported
in liabilities as deferred revenues. These items are now reported in deferred inflows of resources as
unavailable revenues. Our opinions are not modified with respect to this matter.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and the other required supplementary information listed in the table of contents be
presented to supplement the basic financial statements. Such information, although not a part of the basic
financial statements, is required by the Governmental Accounting Standards Board, who considers it to be
an essential part of financial reporting for placing the basic financial statements in an appropriate
operational, economic, or historical context. We have applied certain limited procedures to the required
supplementary information in accordance with auditing standards generally accepted in the United States
of America, which consisted of inquiries of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquiries, the basic
financial statements, and other knowledge we obtained during our audit of the basic financial statements.
We do not express an opinion or provide any assurance on the information because the limited procedures
do not provide us with sufficient evidence to express an opinion or provide any assurance.
24
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Dubuque, Iowa's financial statements. The introductory section, combining
nonmajor fund financial statements, and statistical section are presented for purposes of additional
analysis and are not a required part of the financial statements. The accompanying schedule of
expenditures of federal awards is presented for purposes of additional analysis as required by U.S. Office
of Management and Budget Circular A-133, Audits of States, Local Governments, and Non-Profit
Organizations, and is also not a required part of the financial statements.
The combining nonmajor fund financial statements and the schedule of expenditures of federal awards are
the responsibility of management and were derived from and relate directly to the underlying accounting
and other records used to prepare the basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the combining nonmajor fund financial statements and the
schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic
financial statements as a whole.
The introductory and statistical sections have not been subjected to the auditing procedures applied in the
audit of the basic financial statements and, accordingly, we do not express an opinion or provide any
assurance on them.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards,we have also issued a report dated December 18,
2014, on our consideration of the City of Dubuque, Iowa's internal control over financial reporting and on
our tests of its compliance with certain provisions of laws,regulations, contracts, grant agreements, and
other matters. The purpose of that report is 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
internal control over financial reporting or on compliance. That report is an integral part of an audit
performed in accordance with Government Auditing Standards in considering the City's internal control
over financial reporting and compliance.
,A,,,
SGT
Dubuque, Iowa
December 18, 2014
25
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26
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
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, 2014. 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 remained constant at$501,647,517 compared to net
position of $501,045,202 for fiscal year 2013.
• Governmental program revenues increased by 2,134,525 over fiscal year 2013 due to a $635,000
increase in property taxes, $811,000 increase from renegotiated riverfront property leases and
$111,00 in increased revenue from fuel sales at the Port of Dubuque Marina and sales to
Dubuque County. Increase in fuel related directly to increased cost of purchased fuel prices.
• The City's business type activities program revenues increased $2,601,819. Charges for services
increased $1,468,947. Water(9%), Sewer(17%), and Refuse (9%)rates were increased in
fiscal year 2014.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements consist of government-wide financial statements,fund financial
statements, and notes to the financial statements. This discussion and analysis is intended to serve as an
introduction to the basic financial statements. This report also contains other supplementary information
in addition to the basic financial statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private-sector business. The paragraphs below provide a brief
description of the government-wide financial statements.
The statement of net position presents information on all of the City's assets, liabilities, and deferred
inflows, with the difference between assets and liabilities plus deferred inflows reported as net position.
Over time, increases or decreases in net position may serve as a useful indicator of whether the financial
position of the City is improving or deteriorating. To assess the overall health of the City, you need to
consider additional non-financial factors such as changes in the City's property tax base and the
condition of the City's infrastructure.
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.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
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 financial statements are prepared on the same fiscal year basis
as the City of Dubuque.
The government-wide financial statements are divided into two categories:
Governmental activities. This category consists of services provided by the City that are principally
supported by taxes and intergovernmental revenues. Basic City services such as police, fire,public
works,planning, parks, library, and general administration are governmental activities.
Business-type activities. These activities are supported primarily by user fees. The services provided by
the City in this category include water, sewer, storm water, refuse, salt, parking,transit and the America's
River Project.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate
compliance with legal requirements for financial transactions and reporting. All of the funds of the City
can be divided into three categories: governmental funds,proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions
reported as governmental activities in the government-wide financial statements. However,unlike the
government-wide financial statements, governmental fund financial statements focus on near-term
inflows and outflows of spendable resources, as well as on balances of spendable resources available at
the end of the fiscal year. Such information may be useful in evaluating a government's near-term
financial requirements.
Because the focus of governmental funds is narrower than that of the government-wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government-wide financial statements. By doing
so, readers may better understand the long-term impact of the City's near-term financial decisions. Both
the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and
changes in fund balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
28
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
The City maintains three 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 and general construction
fund, all of which are considered to be major funds. Data from all other governmental funds are
combined into a single, aggregated presentation. Individual fund data for each of these non major
governmental funds is provided in the form of combining statements elsewhere in this report.
The City legally adopts an annual budget by function. A budgetary comparison schedule has been
provided.
Proprietary funds. The City maintains two different types of proprietary funds. Enterprise funds are
used to report the same functions presented as business-type activities in the government-wide financial
statements. The City uses enterprises funds to account for its sewer, water, storm water, and refuse
utilities,transit service, parking facilities, salt, and America's River Project. Internal service funds are
accounting devices used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its engineering services, garage services,
stores/printing,health insurance, and workers' compensation. The City's internal service funds
predominately benefit the governmental activities and have been included in the governmental activities
in the government-wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties
outside the government. Fiduciary funds are not reflected in the government-wide financial statements
because the resources of those funds are not available to support the City's own programs. The
accounting used for fiduciary funds is much like that used for proprietary funds. The City has two
fiduciary funds, an agency fund reporting resources held for the Dubuque Racing Association for
improvements at the greyhound racing facility and an agency fund used for reporting resources from
Mediacom for purchasing equipment relevant to public, educational, and governmental(PEG) access
broadcasting.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government-wide and fund financial statements.
Required supplementary information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning the budget and
actual results of the City and the funding progress for the retiree benefit plan.
Other information. The combining statements referred to earlier in connection with non major
governmental funds, non major enterprise funds, and internal service funds, as well as an individual
agency fund statement, are presented immediately following the required supplementary information.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Netposition. 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(98%)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
are still outstanding. These capital assets are used to provide services to the citizens and are not available
for future spending.
CITY OF DUBUQUE'S NET POSITION
Governmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
Current and other assets $ 92,022,599 $ 101,483,710 $ 23,995,010 $ 24,942,169 $ 116,017,609 $ 126,425,879
Capital assets 389,254,518 379,827,336 254,101,852 244,959,531 643,356,370 624,786,867
Total assets 481,277,117 481,311,046 278,096,862 269,901,700 759,373,979 751,212,746
Longterm liabilities 84,934,637 89,354,696 126,080,517 113,695,550 211,015,154 203,050,246
Other liabilities 13,434,655 16,361,388 8,451,638 12,336,909 21,886,293 28,698,297
Total liabilities 98,369,292 105,716,084 134,532,155 126,032,459 232,901,447 231,748,543
Deferred Inflows of Resources 24,825,015 18,419,001 - - 24,825,015 18,419,001
Net Position:
Net Investment in capital assets 354,732,451 342,046,442 138,842,390 138,498,777 493,574,841 480,545,219
Restricted 21,501,638 23,491,207 5,315,519 6,011,848 26,817,157 29,503,055
Unrestricted (18,151,279) (8,361,688) (593,202) (641,384) (18,744,481) (9,003,072)
Total net position $ 358,082,810 $ 357,175,961 $ 143,564,707 $ 143,869,241 $ 501,647,517 $ 501,045,202
Net position of the governmental activities increased from fiscal year 2013 by$906,849. Grants and
contributions increased $160,295 from fiscal year 2013. FAA grant reimbursement for expenses of the
new airport terminal totals nearly $8 million,which was an increase of$3 million over last year. HUD
payments increased $1 million over last year,while other federal grants decreased from fiscal year 2013
as reimbursable expenses also decreased. Charges for services also increased $1,974,230 primarily due
to renegotiated lease agreements for riverfront properties.
Net position for the business-type activities decreased $304,534 over fiscal year 2013. Grants and
contributions increased $1,132,872 due to rebates received for the WRRC. However expenses increased
by $4,687,745. Severe cold weather caused an unusually high number of water main breaks. Charges for
services increased due to rate increases of 9%on water utilities, 17%on sanitary sewer utilities and a 9%
increase in refuse fees. Depreciation expense for sanitary sewer increased $1.77 million as the new $70
million treatment facility went in service in fiscal year 2014.
30
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
A portion of the City's net position(2%)represents resources that are subject to external restrictions on
how they may be used.
At the close of fiscal year 2014 the City has negative total unrestricted net position. The government-
wide negative unrestricted results from the TIF (governmental activities) debt being used to finance
capital assets of the business-type activities. The City has recorded a $2.7 million payable for settlement
of the Zaber lawsuit involving over charging of franchise fees. The settlement is expected in fiscal year
2015. Business-type activities negative unrestricted results from storm water capital projects completed
in fiscal year 2014 of which $4.8 million were covered under the State Revolving Loan fund proceeds
received in fiscal year 2015 and additional borrowings in 2015.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$33,264,283 in 2014 . Other governmental revenues included gaming of $7,878,008, local option sales
taxes of $8,211,366 and $14,696,269 of charges for services. Gaming revenues declined in fiscal year
2014 due to severe cold weather negatively affecting attendance and increased competition from
neighboring Illinois that now allows video gambling in bars.
Governmental operating expenses during 2014 totaled $91,523,462. The largest programs were public
safety of$27,578,517 public works of$21,306,882, community and economic development of
$14,591,257, and culture and recreation of$13,696,331.
Business-type activities. Business-type activities decreased net position by $304,534 in fiscal year
2014 compared to the fiscal year 2013 increase of $8,109. The decrease is due to a decrease in grant
expense recovery, increased depreciation expenses, and an increase in expenses as a result of a severely
cold winter.
31
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Governmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
Revenues:
Program revenues
Charges for services $ 14,696,269 $ 12,722,039 $ 27,441,544 $ 25,972,597 $ 42,137,813 $ 38,694,636
Operating grants and contributions 12,784,907 13,995,316 1,717,208 2,264,695 14,502,115 16,260,011
Capital grants and contributions 12,162,649 10,791,945 2,920,942 1,240,583 15,083,591 12,032,528
General revenues
Property taxes 33,264,283 32,668,554 - - 33,264,283 32,668,554
Local option sales tax 8,211,366 8,764,787 - - 8,211,366 8,764,787
Hotel/motel tax 2,006,514 1,953,763 - - 2,006,514 1,953,763
Utility franchise fees 2,609,421 2,568,347 - - 2,609,421 2,568,347
Gaming 7,878,008 8,452,298 - - 7,878,008 8,452,298
Unrestricted investment earnings 777,958 201,153 135,461 65,351 913,419 266,504
Gain on sale of capital assets 483,782 907,122 180,229 384,697 664,011 1291 819
Total revenues 94,875,157 93,025,324 32,395,384 29,927,923 127,270,541 122,953,247
Expenses:
Public safety 27,578,517 28,292,481 - - 27,578,517 28,292,481
Public works 21,306,882 21,607,536 - - 21,306,882 21,607,536
Health and social services 1,055,398 716,970 - - 1,055,398 716,970
Cuture and recreation 13,696,331 13,647,178 - - 13,696,331 13,647,178
Community and economic
development 14,591,257 17,388,720 - - 14,591,257 17,388,720
General government 9,610,084 6,248,483 - - 9,610,084 6,248,483
Interest on long-term debt 3,684,993 4,049,640 - - 3,684,993 4,049,640
Sewage disposal works - - 11,481,103 9,375,748 11,481,103 9,375,748
Water utility - - 8,812,340 6,817,772 8,812,340 6,817,772
Stommater utility - - 3,431,096 3,347,304 3,431,096 3,347,304
Parking facilities - - 3,732,492 3,586,405 3,732,492 3,586,405
America's River Project - - 33,579 22,770 33,579 22,770
Refuse collection - - 3,750,366 3,468,859 3,750,366 3,468,859
Transit system - - 3,847,320 3,492,095 3,847,320 3,492,095
Salt 56,468 346,066 56,468 346,066
Total expenses 91,523,462 91,951,008 35,144,764 30,457,019 126,668,226 122,408,027
Increase(decrease)in net position
before extraordinary item and transfers 3,351,695 1,074,316 (2,749,380) (529,096) 602,315 545,220
Extraordinary item - - - (555,031) - (555,031)
Transfers (2,444,846) (1,092,236) 2,444,846 1,092,236
Increase(decrease)in net position 906,849 (17,920) (304,534) 8,109 602,315 (9,811)
Net position,beginning 357,175,961 357,193,881 143,869,241 143,861,132 501,045,202 501,055,013
Net position,ending $ 358,082,810 $ 357,175,961 $ 143,564,707 $ 143,869,241 $ 501,647,517 $ 501,045,202
32
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
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$58,619,921 at June 30, 2014
$15,120,431 is in nonspendable for inventory, advances to other funds,receivables, and prepaid items.
$69,412 is nonspendable endowment corpus. $23,620,615 is restricted for debt service and bond
ordinance, road use tax funds, capital improvements, community development programs, employee
benefits, endowments and various grants. Council ordinance has committed $10,548,592 or capital
improvements. $1,904,805 is assigned for capital improvements and equipment. This leaves
$7,356,066 for unassigned fund balances in the government funds. The general fund's fund balance
reserve goal is 10%of budgeted annual expenditures. The fund balance of the General Fund decreased
by $3,076,955 to $15,809,934. The City had a planned spend down of cash balance for capital projects
in fiscal year 2014. Year to date receipts for gaming and property leases were less than projected.
Gaming revenues declined 10%in fiscal year 2014. The gaming market was adversely impacted by the
unseasonably cold weather and a delayed impact of the recession to the gaming market. In addition, the
State of Illinois passed a Video Gaming Act on July 13, 2009 which legalized the use of video gaming
terminals in liquor licensed establishments including bars, restaurants, truck stops and certain fraternal
and veterans' organizations. In Jo Daviess County, the first year of operating of video gaming terminals
generated $1 million in revenue. The use of video gaming terminals has now grown to $9 million in Jo
Daviess County which has caused a reduction to the gaming market in Dubuque.
In Fiscal Year 2014,the Dubuque Racing Association purchased the adjacent Hilton Gardens Hotel
which will positively impact future gaming revenues. In addition,the net income of the Dubuque Racing
Association will increase due to the end of subsidizing greyhound racing in October 2014.
The City also had unplanned legal fees related to the Utility Franchise Fee lawsuit. These fees will be
recovered in 2015 when the settlement is finalized and the judgment bond is issued.
The fund balance of special revenue fund Tax Increment Financing decreased by $384,654 to
$4,081,662. TIF fund balance decreased $385,000 due to increased debt service related to capital
projects. There has also been a decline in TIF revenue due to the school instructional support levy no
longer being eligible.
The fund balance of the capital projects fund General Construction decreased by$4,693,714 to
$13,532,125. Revenue for capital projects are not always received in the same fiscal year as project
expenses occur.
Proprietary funds. The City's proprietary funds provide the same type of information found in the
government-wide financial statements,but in more detail.
33
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
The combined net position of the enterprise funds at June 30, 2014,totaled $143,564,707 of which
($593,202) is unrestricted. The net position of the internal service funds increased by $948,043 to
$737,223, due to increased department contribution to the Health Insurance Reserve Fund and a decrease
in actual expenses over fiscal year 2013. The unrestricted net position of the internal service funds is
$686,523.
The Sewer Fund had a decrease of$24,094 for total net position of$37,658,534 at June 30, 2014
primarily due to increase in depreciation due to the Water and Resource Recovery Center(W&RRC).
The Water Utility had a decrease in net position of$1,444,780 for total net position of$23,297,274,
primarily due to an increase in expenses related to repairs of water mains due to severely cold weather.
The Storm Water Utility had a 1.7% increase in net position of$562,703. Operating revenues receipted
were 2%higher than anticipated. Ending net position is $31,601,057.
The Parking Facilities held steady with a decrease in net position of$8,921. Ending net position is
$38,127,678.
Other Enterprise Funds net position increased by $610,558 for an ending balance of$12,880,164. This
was primarily due to an increase of transfers in to the Salt Fund for reimbursement of prior year
expenses.
Health Insurance Reserve increased in fiscal year 2014 by$630,874. The City portion of health
insurance expense increased from $1,015 per month per contract to $1,190 per month per contract(based
on 553 contracts)which is a 17.24%increase in revenue to the health insurance reserve.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2013-2014 cash basis budget The first amendment was
passed in September 2013 to reflect operating and capital budget carryovers (continuing appropriation
authority)from 2013 and amended the FY 2014 budget for operating and capital City Council actions
since the beginning of the fiscal year. The second budget amendment was passed in April 2014 to reflect
City Council actions since the second budget amendment and amendments to add additional
appropriation authority due to increased revenues.
The final budget for total cash basis receipts increased by $63,460,463. The increase was primarily
attributable to revenue associated with capital projects and operating carryovers which mainly include
grants to intergovernmental funds. The final budget for total expenditures increased $115,979,731 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 $31,874,733 less than the final amended budget, and cash basis
expenditures were $96,409,546 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
34
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business-type activities as
of June 30, 2014, amounts to $643,356,370 (net of accumulated depreciation). This investment in capital
assets includes land,buildings, improvements other than buildings, machinery and equipment,
infrastructure, and construction in progress. Additional information on the City's assets can be found in
note 6 to the financial statements in this report
CAPITAL ASSETS(net of accumulated depreciation)
Govemmental Activities Business-type Activities Total
2014 2013 2014 2013 2014 2013
Land $ 67,080,527 $ 65,196718 $ 18,722,641 $ 17,728752 $ 85,803,168 $ 82,924,670
Buildings 127,599,341 126,173;378 136,007,378 133,810,040 263,606,719 259983,418
Improvements other than buildings 22,219,094 22,100,379 94,055,495 91,529,793 116,274,589 113,630,172
Maclunery and equipment 39,518716 38,179774 95,332,143 90,018,972 134,850,359 128,198,246
In9astmcture 215931,579 213,219,583 - - 215931,579 213719,583
Constmction in progress 44,054916 33,798,734 6,978,822 2,250748 51,033,738 36,048982
Accmmilated depreciation (127,149,155) (118,840,330) (96994,627) (90777,874) (224,143,782) (209,218,204)
$ 389,254,518 $ 379,827736 $ 254,101,852 $ 244959,531 $ 643,356,370 $ 624,786,867
Major expenditures during 2013-2014 were for the construction work on the Water and Resource
Recovery Center Cogeneration Upgrade,Bee Branch storm water projects,Millwork District projects,
and Intermodal projects.
Long-term debt At year end, the City had $210,798,058 of debt outstanding. In fiscal year 2014 the City
issued Sales Tax Incremental Revenue bonds (series 2014A)for flood mitigation projects in the Bee
Branch area. This loan is part of the $98.7 million state grant award to the City that will be paid over the
next twenty years for flood mitigation projects. The grant is computed based on the incremental increase
in sales tax receipts collected by the state. The debt service payment for flood mitigation projects
approved under this grant are reimbursed through this grant. In case the sales tax incremental receipts
are not sufficient to cover the debt service a second lien is filed against property tax support.
The City received $10,318,778 in distributions from the State Revolving Fund for construction expenses
for the new Water and Resource Recovery Center.
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 our debt capacity is $183,621,403. With $149,922,546 of debt applicable against
the capacity,we are utilizing 81.7%of this limit Additional information on the City's long-term debt can
be found in note 7 of this report.
35
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30,2014
ECONOMIC FACTORS
The City's unemployment rate ended the fiscal year at 3.7%, a 1.5%decrease from the prior year, and
lower than both the State of Iowa's 4.6%rate and 6.1%national rate.
The assessed valuation of taxable property,net of exemptions, increased by 2.6%to $2,398,151,000. In
fiscal year 2014, the minimum monthly refuse rate increased by $1.05 to $12.74, sewer rates increased
17%, water rates increased 9%, and the storm water monthly fee remained the same at$5.60 per single
family unit(SFU).
Requests for information. This financial report is designed to provide a general overview of the City's
finances for all those with an interest in the government's finances. Questions concerning any of the
information provided in this report or requests for additional financial information should be addressed to
the Finance Director, 50 West 13th Street,Dubuque,Iowa 52001-4864.
36
Basic Financial Statements
June 30, 2014
City of Dubuque, Iowa
37
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
JUNE 30,2014
Primary Government Component Units
Dubuque
Metropolitan Dubuque Dubuque
Governmental Business-type Area Solid Initiatives and Convention and
Activities Activities Total Waste Agency Subsidiaries Visitors Bureau
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 36,643,683 $ 7,141,850 $ 43,785,533 $ 1,528,040 $ 1,444,195 $ -
Receivables
Property tax
Delinquent 268,355 - 268,355 - -
Succeeding year 24,825,015 - 24,825,015 - - -
Accounts and other 1,648,356 2,672,376 4,320,732 309,328 144,435 36,028
Special assessments 955,503 - 955,503 - - -
Accrued interest 154,046 30,760 184,806 5,864 49,330 -
Notes 587,068 - 587,068 - 38,024 -
Intergovernmental 4,534,227 1,068,431 5,602,658 57,012 -
Internal balances 4,890,536 (4,890,536) - - - -
Inventories 389,573 754,800 1,144,373 - 530,251 13,843
Prepaid items 317,086 12,526 329,612 24,648 622,682 -
Restricted cash 262,269
Total Current Assets 75,213,448 6,790,207 82,003,655 1,924,892 3,091,186 49,871
NONCURRENT ASSETS
Temporarily restricted cash and investments 2,763,895 17,204,803 19,968,698 4,490,940 1,339,034 -
Permanently restricted cash and investments 69,412 - 69,412 - -
Notes receivable 13,975,844 - 13,975,844 - 10,563,598 -
Capital assets
Land 67,080,527 18,722,641 85,803,168 2,952,666 131,983 -
Buildings 127,599,341 136,007,378 263,606,719 88,495 44,536,354 -
Improvementsotherthanbuildings 22,219,094 94,055,495 116,274,589 10,306,408 32,816 -
Machinery and equipment 39,518,216 95,332,143 134,850,359 3,737,130 - 280,119
Infrastructure 215,931,579 - 215,931,579 - - -
Constructioninprogress 44,054,916 6,978,822 51,033,738 - -Accumulated depreciation (127,149,155) (96,994,627) (224,143,782) (8,739,795) (4,712,164) -
Total Noncurrent Assets 406,063,669 271,306,655 677,370,324 12,835,844 51,891,621 280,119
Total Assets 481,277,117 278,096,862 759,373,979 14,760,736 54,982,807 329,990
38
CITY OF DUBUQUE,IOWA EXHIBIT 1
STATEMENT OF NET POSITION(continued)
JUNE 30,2014
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 $ 7,247,731 $ 2,343,846 $ 9,591,577 $ 170,860 $ 641,994 $ 81,892
Accrued payroll 415,457 147,834 563,291 18,103 - -
Loans payable 97,143 24,208 121,351 - - 49,472
Notes payable 218,427 3,126,735 3,345,162 - 756,636 -
General obligation bonds payable 4,354,450 2,205,549 6,559,999 - - -
Revenuebondspayable - 275,000 275,000 - - -
Tax increment financing bonds payable 399,361 - 399,361 - - -
Accrued compensated absences 272,783 28,608 301,391 14,422 - -
Accruedinterestpayable 286,365 299,858 586,223 - 52,990
Intergovernmental payable 40,608 - 40,608 57,106 - -
Unearned revenue 102,330 102,330
Total Current Liabilities 13,434,655 8,451,638 21886293 260,491 1,451,620 131 364
NONCURRENT LIABILITIES
Loans payable 5,444,285 262,055 5,706,340 - - 159,499
Notes payable 811,609 79,798,214 80,609,823 - 27,346,883 -
General obligation bonds payable 48,214,198 30,533,313 78,747,511 - - -
Revenuebondspayable - 13,876,437 13,876,437 - - -
Landfill closure and posiclosure care - - - 3,926,497 - -
Taxincrementfinancingbondspayable 21,157,074 - 21,157,074 - - -
Accrued compensated absences 6,256,962 968,079 7,225,041 300,004 - -
NetOPEBLiability 3,050,509 642,419 3,692,928 67,688
Total Noncurrent Liabilities 84,934,637 126,080,517 211,015,154 4,294,189 27,346,883 159,499
Total Liabilities 98,369,292 134,532,155 232,901,447 4,554,680 28,798,503 290,863
DEFERRED INFLOWS OF RESOURCES
Unavailable Revenues
Succeeding year property tax $ 24,825,015 $ - $ 24,825,015 $ - $ - $
NET POSITION
Net investment in capital assets 354,732,451 138,842,390 493,574,841 8,344,904 11,885,470 -
Restricted for/by:
Bond ordinance development agreement 2,140,740 5,315,519 7,456,259 - -
Debt service 28,488 - 28,488 - -Employee benefits 51,580 - 51,580 - -Community development 10,409,902 - 10,409,902 - - -
IowaFinanceAuthorityTmst 13,664 - 13,664 - -Capital projects 7,132,385 - 7,132,385 - -Franchise agreement 298,041 - 298,041 - - -
Endowments,expendable 82,183 - 82,183 - - 16,077
Endowments,nonexpendable 69,412 - 69,412 - - -
Other 1,275,243 - 1,275,243 - - -
State statute - - - 143,265 - -
Minority interest - - - 389,960 - -
Unrestricted (18,151,279) (593,202) (18,744,481) 1,327,927 14,298,834 23,050
Total Net Position $ 358,082,810 $ 143,564,707 $ 501,647,517 $ 10,206,056 $ 26,184,304 $ 39,127
See notes to financial statements.
39
CITY OF DUBUQUE,IOWA
STATEMENT OF ACTIVITIES EXHIBIT 2
FOR THE YEAR ENDED JUNE 30,2014
Program Revenues Net(Expense)Revenue and Changes in Net Position
Primary government Component Units
Dubuque
Operating Capital Grants Metropolitan Dubuque Dubuque
Charges for Grants and and Total Program Governmental Business-type Area Solid Initiatives and Convention and
FLncfions/Programs Expenses Services Contributions Contributions Revenues Activities Activities Total Waste Agency Subsidiaries Visitors Bureau
Primary government
Governmental Activities:
Public safety $ 27,578,517$ 2,624,455 $ 922,126$ 50,672 $ 3,597,253$ (23,981,264) $ - $ (23,981,264)$Public works 21,306,882 5,829,293 6,403,588 9,739,368 21,972,249 665,367 - 665,367 - - -
Health and social services 1,055,398 122,746 33,471 12,904 169,121 (886,277) - (886,277) - - -
Cultureandrecreafion 13,696,331 2,321,265 369,077 479,669 3,170,011 (10,526,320) - (10,526,320) - - -
Communityandeconomicdevelopment 14,591,257 527,927 5,056,645 1,696,263 7,280,835 (7,310,422) - (7,310,422) - - -
General government 9,610,084 3,270,583 - 183,773 3,454,356 (6,155,728) - (6,155,728) - - -
Interest on long-term debt 3,684,993 (3,684,993) (3,684,993)
Total governmental activities 91,523,462 14,696,269 12 784,907 12,162,649 39,643,825 (51,879,637) (51,879,637)
Business-type activities
Sewage disposal works 11,481,103 10,025,673 - 1,364,204 11,389,877 - (91,226) (91,226) - -Water utility 8,812,340 7,248,790 - 125,400 7,374,190 - (1,438,150) (1,438,150) - - -
Stommaterutility 3,431,096 3,224,504 - 334,146 3,558,650 - 127,554 127,554 - -Parking facilities 3,732,492 2,920,148 - 198,189 3,118,337 - (614,155) (614,155) - - -
AmericansRiverProject 33,579 - - - - - (33,579) (33,579) - - -
Refusecollecfion 3,750,366 3,700,922 - - 3,700,922 - (49,444) (49,444) - -Transit system 3,847,320 275,907 1,717,208 899,003 2,892,118 - (955,202) (955,202) - - -
Salt 56,468 45,600 45,600 (10,868) (10,868)
Total business-type activities 35,144,764 27,441,544 1,717,208 2,920,942 32,079,694 (3,065,070) (3,065,070)
Total primary government $ 126,668,226$ 42,137,813$ 14,502,115 $ 15,083,591 $ 71723 519 (51,879,637) (3,065,070) (54,944,707)
Component units
DMASWA 4,297,609 3,460,057 - 103,992 3,564,049 (733,560) - -
DubuqueInitiativesandSubsiAares 4,594,019 3,485,668 - 5,000 3,490,668 - (1,103,351) -
Dubuque Convention and Visitors Bureau 1,152,562 1 082,940 108,516 1,191,456 38,894
Total Component Units $ 10 044190$ 8,028,665 $ - $ 217,508 $ 8,246,173 (733,560) (1,103,351) 38,894
General revenues
Property taxes 33,264,283 - 33,264,283 - - -
Local option sales tax 8,211,366 - 8,211,366 - - -
Hotel motel tax 2,006,514 - 2,006,514 - - -
Utilityfranclusefees 2,609,421 - 2,609,421 - - -
Gaming 7,878,008 - 7,878,008 - - -
Umeshictedinvestment earnings 777,958 135,461 913,419 22,067 654,654 233
Gain on disposal of capital assets 483,782 180,229 664,011 - - -
Transfers (2,444,846) 2,444,846
Total General Revenues and Transfers 52,786,486 2,760,536 55,547,022 22,067 654,654 233
Change in Net Position 906,849 (304,534) 602,315 (711,493) (448,697) 39,127
Net position,beginning ofyear 357175,961 143,869,241 501,045,202 10,917549 26,633,001
Net position,ending ofyear $ 358,082,810 $ 143,564,707 $ 501,647,517$ 10,206,056$ 26,184,304 $ 39,127
See notes to financial statements
40
THIS PAGE IS INTENTIONALLY LEFT BLANK
41
CITY OF DUBUQUE,IOWA
BALANCE SHEET EXHIBIT 3
GOVERNMENTALFUNDS
NNE 30,2014
Special Revenue Capital Projects
Tax Other
Increment General Governmental
General Financing Construction Funds Total
ASSETS
Cash and pooled cash investments $ 2,814,268 $ 1,899,738 $ 13,746,643 $ 15,696,745 $ 34,157,394
Receivables
Property tax
Delinquent 206,338 - - 62,017 268,355
Succeeding year 19,311,889 - - 5,513,126 24,825,015
Accounts and other 1,354,881 - - 194,310 1,549,191
Special assessments - - - 955,503 955,503
Accrued interest 33,652 41,184 581 69,231 144,648
Notes 6,047,516 - - 8,515,396 14,562,912
Intergovernmental 1,673,997 - 28,838 2,831,392 4,534,227
Due from other funds 5,052,654 - - - 5,052,654
Inventories 291,356 - - - 291,356
Prepaid items 210,131 - - 55,972 266,103
Restricted cash and pooled cash investments 2,140,740 692,567 2,833,307
Total Assets $ 36,996,682 $ 4,081,662 $ 13,776,062 $ 34,586,259 $ 89,440,665
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 819,932 $ - $ 243,937 $ 1,625,791 $ 2,689,660
Accrued payroll 326,882 - - 51,236 378,118
Intergovernmental payable - - - 40,608 40,608
Uneamed revenue 88,327 14,003 102,330
Total Liabilities 1,235,141 243 937 1,731,638 3210716
DEFERRED INFLOW OF RESOURCES
Unavailable revenues
Succeeding year property tax 19,311,889 - - 5,513,126 24,825,015
Special assessments - - - 917,342 917,342
Grants 66,978 - - 1,153,554 1,220,532
Other 572,740 74,399 647,139
Total Deferred Inflows of Resources 19,951,607 7,658,421 27610028
FUND BALANCES
Nonspendable
Endowment corpus - - - 69,412 69,412
Inventory 291,356 - - - 291,356
Long-term notes receivable 6,047,576 - - 8,515,396 14,562,972
Prepaid items 210,131 - - 55,972 266,103
Restricted
Endowments - - - 82,183 82,183
Library - - - 1,233,379 1,233,379
Debt service - - - 28,488 28,488
Bond ordinance - 2,140,740 - - 2,140,740
Capital improvements - 1,940,922 13,532,125 1,726,178 17,199,225
Franchise agreement - - - 298,041 298,041
Special assessments - - - 38,241 38,241
Claims - - - 3,623 3,623
Iowa Finance Authority Trust - - - 13,664 13,664
Community programs - - - 2,531,451 2,531,451
Employee benefits - - - 51,580 51,580
Committed,capital improvements - - - 10,548,592 10,548,592
Assigned
DRA gaming and distribution 1,904,805 - - - 1,904,805
Unassigned 7,356,066 7,356,066
Total Fund Balances 15,809,934 4,081,662 13,532,125 25,196,200 58,619,921
Total Liabilities,Deferred Inflows of Resources
and Fund Balances $ 36,996,682 $ 4,081,662 $ 13,776,062 $ 34,586,259 $ 89,440,665
See notes to financial statements.
42
CITY OF DUBUQUE,IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET EXHIBIT 3-1
TO THE STATEMENT OF NET POSITION
JUNE 30,2014
Total fund balances-governmental funds $ 58,619,921
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets $ 516,297,152
Accumulated depreciation (127,093,333)
389,203,819
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds. Those revenues consist of:
Property tax 27,086
Special assessments 917,342
Other 1,840,585
2,785,013
Internal service funds are used by the City's management to
charge the costs of equipment maintenance and self-insurance
programs to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net position. 737,223
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 (52,568,648)
Tax increment financing bonds (21,556,435)
Notes payable (1,030,036)
Loans payable (5,541,428)
Accounts payable Zaber settlement (2,700,000)
Accrued interest (286,365)
Compensated absences (6,529,745)
Net OPEB liability (3,050,509)
(93,263,166)
Net position of governmental activities $ 358,082,810
See notes to financial statements.
43
CITY OF DUBUQUE,IOWA
STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES EXHIBIT 4
GOVERNMENTALFUNDS
FOR THE YEAR ENDED NNE 30,2014
Special Revenue Capital Projects
Tax Other
Increment General Governmental
General Financing Construction Funds Total
REVENUES
Taxes $ 27,243,555 $ 9,140,253 $ - $ 9,650,553 $ 46,034,361
Special assessments 33,640 - - 121,052 154,692
Licenses and permits 1,136,941 - - - 1,136,941
Intergovernmental 2,591,928 - 28,838 20,429,286 23,050,052
Charges for services 10,007,272 - - 256,985 10,264,257
Fines and forfeits 455,219 - - - 455,219
Investment earnings 294,741 171,115 35,662 255,291 756,809
Contributions 590,705 74,354 3,374 10,128 678,561
Gaming 7,878,008 - - - 7,878,008
Miscellaneous 678,627 2,500 1,024,148 1,705,275
Total Revenues 50,910,636 9,385,722 70,374 31,747,443 92,114,175
EXPENDITURES
Current
Public safety 27,644,190 - - - 27,644,190
Public works 7,720,258 - - 6,222,514 13,942,772
Health and social services 999,511 - - 49,683 1,049,194
Culture and recreation 12,114,812 - - 236,685 12,351,497
Community and economic development 3,610,094 3,392,352 - 7,418,534 14,420,980
General government 5,355,714 - - 542,579 5,898,293
Debt service
Principal 48,000 - - 4,547,808 4,595,808
Interest and fiscal charges 139,488 - - 3,511,206 3,650,694
Capital projects 4,892,905 13,886,746 18,779,651
Total Expenditures 57,632,067 3,392,352 4,892,905 36,415,755 102,333,079
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (6,721,431) 5,993,370 (4,822,531) (4,668,312) (10,218,904)
OTHER FINANCING SOURCES(USES)
Transfers in 6,251,017 410,385 95,079 9,106,035 15,862,516
Transfers out (2,853,785) (6,788,409) (292,542) (7,360,026) (17,294,762)
Insurance recovery 12,918 - - 46,878 59,796
Sale of capital assets 234,326 326,280 106,042 666,648
Total Other Financing Sources(Uses) 3,644,476 (6,378,024) 128,817 1,898,929 (705,802)
NET CHANGE IN FUND BALANCES (3,076,955) (384,654) (4,693,714) (2,769,383) (10,924,706)
FUND BALANCES,BEGINNING 18,886,889 4,466,316 18,225,839 27,965,583 69,544,627
FUND BALANCES,ENDING $ 15,809,934 $ 4,081,662 $ 13,532,125 $ 25,196,200 $ 58,619,921
See notes to financial statements.
44
CITY OF DUBUQUE,IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES, EXHIBIT 4-1
EXPENDITURES,AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30,2014
Net change in fund balances-total governmental funds $ (10,924,706)
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 $ 19,128,239
Transfers of capital assets to enterprise funds (1,008,466)
Contributions from developers and federal government 681,910
Depreciation expense (9,193,866)
9,607,817
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. (169,897)
Because some revenues will not be collected for several months after the City's
fiscal year ends,they are not considered"available"revenues and are deferred
in the governmental funds. Deferred inflows of resources increased(decreased)
by these amounts this year:
Property tax (6,612)
Special assessments (155,246)
Other 287,624
132,378
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 repayments 4,595,808
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.
Accounts payable pending Zaber lawsuit (2,700,000)
Decrease in accrued interest 34,299
Amortization of bond discount/premium 19,821
Increase in compensated absences (305,917)
Increase in net OPEB liability (324,185)
Total additional expenses (610,281)
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. 948,043
Change in net position of governmental activities $ 906,849
See notes to financial statements.
45
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2014
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 4,629,358 $ 1,722,951 $ -
Receivables
Accounts 1,098,803 798,174 321,206
Accrued interest 17,499 9,113 -
Intergovernmental - - 63,601
Inventories - 754,800 -
Prepaid items - - -
Total Current Assets 5,745,660 3,285,038 384,807
NONCURRENT ASSETS
Restricted cash and pooled cash investments 1,578,504 1,590,487 9,664,651
Capital assets
Land 167,855 59,898 16,334,423
Buildings 72,005,065 9,066,404 -
Improvements to other than buildings 39,726,751 761,957 50,239,596
Machinery and equipment 39,354,365 45,621,738 1,061,958
Construction in progress 1,220,382 464,682 2,282,382
Accumulated depreciation (46,608,404) (22,839,302) (10,706,249)
Net Capital Assets 105,866,014 33,135,377 59,212,110
Total Noncurrent Assets 107,444,518 34,725,864 68,876,761
Total Assets $ 113,190,178 $ 38,010,902 $ 69,261,568
46
EXHIBIT 5
Business-type Activities-Enterprise Funds
Governmental
Activities-
Parking Other Enterprise Internal Service
Facilities Funds Total Funds
$ 205,011 $ 584,530 $ 7,141,850 $ 2,486,289
142,043 312,150 2,672,376 99,165
1,938 2,210 30,760 9,398
- 1,004,830 1,068,431 -
- - 754,800 98,217
12,526 - 12,526 50,983
361,518 1,903,720 11,680,743 2,744,052
700,461 3,670,700 17,204,803 -
2,124,465 36,000 18,722,641 -
52,872,887 2,063,022 136,007,378 -
2,396,647 930,544 94,055,495 -
2,027,188 7,266,894 95,332,143 106,521
513,466 2,497,910 6,978,822 -
(12,660,109) (4,180,563) (96,994,627) (55,822)
47,274,544 8,613,807 254,101,852 50,699
47,975,005 12,284,507 271,306,655 50,699
$ 48,336,523 $ 14,188,227 $ 282,987,398 $ 2,794,751
(Continued)
47
CITY OF DUBUQUE,IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30,2014
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 1,236,183 $ 221,186 $ 171,425
Accrued payroll 28,327 35,619 4,617
Loans payable-current - - -
General obligation bonds payable 314,320 370,975 827,543
Revenue bonds payable - 275,000 -
Capital loan notes payable 2,603,500 166,500 356,735
Accrued compensated absences 22,605 - -
Accrued interest payable 124,978 37,941 97,946
Due to other funds - - 4,817,539
Total Current Liabilities 4,329,913 1,107,221 6,275,805
NONCURRENT LIABILITIES
Loans payable - - -
General obligation bonds payable 4,236,276 4,046,568 13,252,054
Revenue bonds payable - 5,715,127 8,161,310
Capital loan notes payable 66,529,724 3,344,500 9,923,990
Accrued compensated absences 268,823 318,338 9,898
Net OPEB Liability 166,908 181,874 37,454
Total Noncurrent Liabilities 71,201,731 13,606,407 31,384,706
Total Liabilities 75,531,644 14,713,628 37,660,511
NET POSITION
Net investment in capital assets 36,462,201 19,721,492 36,355,128
Restricted by bond ordinance/development agreement 251,264 1,085,702 -
Unrestricted 945,069 2,490,080 (4,754,071)
Total Net Position $ 37,658,534 $ 23,297,274 $ 31,601,057
48
EXHIBIT 5
(Continued)
Business-type Activities-Enterprise Funds
Governmental
Activities-
Parking Other Enterprise Intemal Service
Facilities Funds Total Funds
$ 138,684 $ 576,368 $ 2,343,846 $ 1,858,071
12,326 66,945 147,834 37,339
24,208 - 24,208 -
688,205 4,506 2,205,549 -
- - 275,000 -
- - 3,126,735 -
3,407 2,596 28,608 -
38,734 259 299,858 -
- 72,997 4,890,536 162,118
905,564 723,671 13,342,174 2,057,528
262,055 - 262,055 -
8,908,309 90,106 30,533,313 -
- - 13,876,437 -
- - 79,798,214 -
71,197 299,823 968,079 -
61,720 194,463 642,419 -
9,303,281 584,392 126,080,517 -
10,208,845 1,308,063 139,422,691 2,057,528
37,784,374 8,519,195 138,842,390 50,700
307,853 3,670,700 5,315,519 -
35,451 690,269 (593,202) 686,523
$ 38,127,678 $ 12,880,164 $ 143,564,707 $ 737,223
49
CITY OF DUBUQUE,IOWA
STATEMENT OF REVENUES,EXPENSES,AND CHANGES
IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30,2014
Business-type Activities-Enterprise Funds
Sewage
Disposal Water Stormwater
Works Utility Utility
OPERATING REVENUES
Charges for sales and services $ 10,010,796 $ 7,248,790 $ 3,204,107
Other 14,877 - 20,397
Total Operating Revenues 10,025,673 7,248,790 3,224,504
OPERATING EXPENSES
Employee expense 3,317,105 3,441,533 1,003,085
Utilities 639,350 589,842 7,286
Repairs and maintenance 713,905 189,269 41,379
Supplies and services 1,967,071 3,065,063 771,418
Insurance 116,203 98,275 10,149
Depreciation 3,138,474 957,743 695,847
Total Operating Expenses 9,892,108 8,341,725 2,529,164
OPERATING INCOME(LOSS) 133,565 (1,092,935) 695,340
NONOPERATING REVENUES(EXPENSES)
Intergovernmental 81,227 - 63,351
Investment earnings 58,267 34,260 15,522
Contributions 924,502 - 32,126
Interest expense (1,583,549) (470,615) (901,932)
Gain(loss)on disposal of assets 6,056 20,422 153,576
Net Nonoperating Revenues(Expenses) (513,497) (415,933) (637,357)
INCOME(LOSS)BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS (379,932) (1,508,868) 57,983
CAPITAL CONTRIBUTIONS 358,475 125,400 238,669
TRANSFERS IN - 20,367 267,559
TRANSFERS OUT (2,637) (81,679) (1,508)
CHANGE IN NET POSITION (24,094) (1,444,780) 562,703
NET POSITION,BEGINNING 37,682,628 24,742,054 31,038,354
NET POSITION,ENDING $ 37,658,534 $ 23,297,274 $ 31,601,057
See notes to financial statements.
50
EXHIBIT 6
Business-type Activities-Enterprise Funds
Governmental
Other Activities-
Parking Enterprise Intemal
Facilities Funds Total Service Funds
$ 2,677,224 $ 3,945,096 $ 27,086,013 $ 15,193,949
242,924 77,333 355,531 155,195
2,920,148 4,022,429 27,441,544 15,349,144
971,014 4,350,228 13,082,965 3,275,712
263,146 74,782 1,574,406 28,441
267,131 601,350 1,813,034 35,900
632,317 1,798,622 8,234,491 10,909,044
80,802 78,928 384,357 164,913
1,079,449 786,111 6,657,624 10,738
3,293,859 7,690,021 31,746,877 14,424,748
(373,711) (3,667,592) (4,305,333) 924,396
125,710 2,582,125 2,852,413 -
7,153 20,259 135,461 21,149
72,479 34,086 1,063,193 -
(438,633) (3,158) (3,397,887) -
- 175 180,229 6,632
(233,291) 2,633,487 833,409 27,781
(607,002) (1,034,105) (3,471,924) 952,177
1,008,466 - 1,731,010 -
- 1,675,284 1,963,210 -
(410,385) (30,621) (526,830) (4,134)
(8,921) 610,558 (304,534) 948,043
38,136,599 12,269,606 143,869,241 (210,820)
$ 38,127,678 $ 12,880,164 $ 143,564,707 $ 737,223
51
CITY OF DUBUQUE,IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2014
Business-type Activities-
Sewage
Disposal Water Stortnwater Parking
Works Utility Utility Facilities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,962,393 $ 7,272,189 $ 3,218,355 $ 2,676,578
Cash payments to suppliers for goods and services (6,514,852) (4,626,591) (1,729,513) (1,119,000)
Cash payments to employees for services (3,344,702) (3,408,682) (997,807) (960,257)
Other operating receipts 14,877 20,397 242,924
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES 117,716 (763,084) 511,432 840,245
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 20,367 267,559 -
Transfers toother funds (2,637) (81,679) (1,508) (410,385)
Proceeds from interfund balances - - 3,316,207 -
Payment of interfund balances - - - -
Intergovemmentalgrantproceeds 195,909 - -
NET CASH PROVIDED BY(USED FOR)NONCAPITAL
FINANCING ACTIVITIES 193,272 (61,312) 3,582,258 (410,385)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 6,056 20,422 153,576 -
Acquisition and construction of capital assets (7,829,746) (1,110,625) (2,795,966) (82,361)
Proceeds from issuance of debt 8,354,803 - 9,153,975 -
Premium on Debt Issuance - - 971,310 -
Paymentofdebt (2,634,136) (790,404) (1,102,847) (740,678)
Interest paid (1,572,858) (472,115) (878,289) (450,047)
Contributions 924,502 - 32,126 72,479
Intergovernmental grant proceeds - 148,166 21,554 113,184
NET CASH PROVIDED BY(USED FOR)CAPITAL AND
RELATED FINANCING ACTIVITIES (2,751,379) (2,204,556) 5,555,439 (1,087,423)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 52,173 31,457 15,522 7,441
NET INCREASE(DECREASE)IN CASH AND POOLED
INVESTMENTS (2,388,218) (2,997,495) 9,664,651 (650,122)
CASH AND CASH EQUIVALENTS,BEGINNING 8,596,080 6,310,933 1,555,594
CASH AND CASH EQUIVALENTS,ENDING $ 6,207,862 $ 3,313,438 $ 9,664,651 $ 905,472
52
EXHIBIT 7
Enterprise Funds Governmental
Other Activities-
Enterprise Internal
Funds Total Service Funds
$ 4,051,194 $ 27,180,709 $ 15,193,784
(2,681,873) (16,671,829) (11,008,483)
(4,350,426) (13,061,874) (3,269,768)
77,333 355,531 155,195
(2,903,772) (2,197,463) 1,070,728
1,675,284 1,963,210 -
(30,621) (526,830) (4,134)
38,181 3,354,388 -
8,311 8,311 -
2497940 2,693,849 119,613
4,189,095 7,492,928 115,479
20,475 200,529 6,632
(2,270,537) (14,089,235) -
- 17,508,778 -
971,310
(4,413) (5,272,478) -
(3,198) (3,376,507) -
34,086 1,063,193 -
282,904
(2,223,587) (2,912,035) 6,632
19,402 125,995 14,345
(918,861) 2,383,431 1,207,184
5,174,091 21,636,698 1,279,105
$ (1,837,722) $ 24,020,129 $ 2,486,289
(Continued)
53
CITY OF DUBUQUE,IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30,2014
Business-type Activities-
Sewage
Disposal Water Stortnwater Parking
Works Utility Utility Facilities
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES
Operating income(loss) $ 133,565 $ (1,092,935) $ 695,340 $ (373,711)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 3,138,474 957,743 695,847 1,079,449
Change in assets and liabilities
(Increase)decrease in receivables (48,403) 23,399 14,248 (646)
Decrease(increase)in inventories and prepaid items - 77,551 - 6,373
Increase(decrease)in accounts payable (3,078,323) (761,693) (899,281) 118,023
Increase(decrease)in accrued liabilities (43,536) 14,015 931 4,237
Increase in net OPEB liability 15,939 18,836 4,347 6,520
Total Adjustments (15,849) 329,851 (183,908) 1,213,956
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ 117,716 $ (763,084) $ 511,432 $ 840,245
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources $ 358,475 $ 125,400 $ 238,669 $
Contributions of capital assets from Governmental Activities $ - $ - $ - $ 1,008,466
See notes to financial statements.
54
EXHIBIT 7
(Continued)
Enterprise Funds Governmental
Other Activities-
Enterprise Internal
Funds Total Service Funds
$ (3,667,592) $ (4,305,333) $ 924,396
786,111 6,657,624 10,738
106,098 94,696 (165)
- 83,924 (48,078)
(128,191) (4,749,465) 177,893
(19,035) (43,388) 5,944
18,837 64,479
763,820 2,107,870 146,332
$ (2,903,772) $ (2,197,463) $ 1,070,728
$ $ 722,544 $
$ $ 1,008,466 $
55
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES EXHIBIT s
AGENCY FUNDS
JUNE 30, 2014
Agency
Funds
ASSETS
Cash and pooled cash investments S 1,102,368
Accounts receivable 54,656
Accrued interest 2,239
Total Assets S 1,159,263
LIABILITIES
Accounts Payable S 4,640
Due to other agency 1,154,623
Total Liabilities S 1,159,263
See notes to financial statements.
56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part
of this report The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand,Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long-Term Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits (OPEB)
11. Employee Retirement Systems
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. Prospective Accounting Pronouncements
57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six-member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the government-wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E
of the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to
provide solid waste management for the Dubuque metropolitan area. The City appoints a voting majority
of the Agency's governing board and has authority over those persons responsible for the day-to-day
operations of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end.
During the year ended June 30, 2014, $494,811 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 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
Dubuque Convention and Visitors Bureau is a non-profit corporation organized under the laws of Iowa
and Section 501(c)(3) of the Internal Revenue Code. The Organization's purpose is to strengthen the
Dubuque area economy by competitively marketing the area as a destination for conventions, tour
groups, sporting events and individual travelers. The Organization's articles require that its board
members include one City Council member, the City of Dubuque Mayor and the City Manager. In the
event of dissolution, any assets or property of the Organization shall be distributed to the City of
Dubuque, Iowa after paying or making provision for the payment of all liabilities of the Corporation. The
City collects hotel/motel taxes and forwards 50% to the CVB as the primary source of funds for its
operations. The CVB is presented as a governmental fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries and the Dubuque Convention and Visitors Bureau present their
financial information in accoradance 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.
City of Dubuque
50 West 13th Street
58
Dubuque, Iowa 52001
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing financial
interest or responsibility by the participating governments. City officials are members of the following
boards and commissions:
City of Dubuque Conference Board
Dubuque County E-911 Committee
Dubuque Drug Task Force
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net position and the statement of
activities) report information on all of the nonfiduciary activities of the primary government and its
component units. For the most part, the effect of interfund activity has been removed from these
statements. Governmental activities, which normally are supported by taxes and intergovernmental
revenues, are reported separately from business-type activities, which rely to a significant extent on fees
and charges for services. Likewise, the primary government is reported separately from the legally
separate component units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase,use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period(year-end).
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
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-tern debt service.
The General Construction Fund is used to account for the resources and costs related to
nonassignable capital improvements.
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account for the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City's water facilities and
services.
The Stormwater Utility Fund is used to account for the operations of the City's stornwater
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.
Fiduciary funds account for assets held by the City in a trustee or agency capacity for the benefit of
others and cannot be used to support City activities. Fiduciary funds, other than agency funds, use the
economic resources measurement focus and the full accrual basis of accounting. Agency funds use the
full accrual basis of accounting but do not have a measurement focus and therefore report only assets and
liabilities. The City reports Agency Funds to account for assets held by the City as an agent under the
cable franchise agreement and for the Dubuque Racing Association.
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. 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City's policy to use
restricted resources first,then unrestricted resources as they are needed.
Assets, Liabilities, Deferred Inflows of Resources, and Equity
Deposits and Investments
The City's cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
Investments are stated at fair value or amortized cost. Amortized cost is used only for money market
investments that have a remaining maturity at time of purchase of one year or less.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at
year-end are referred to as either"due to/from other funds"(i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide
financial statements as "internal balances."
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, 2014, and
2014 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.
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
By statute, the City is required to certify its budget to the County Auditor by March 15 of each year for
the subsequent fiscal year. However, by statute, the tax asking and budget certification for the following
fiscal year becomes effective on the first day of that year. Although the succeeding year property tax
receivable has been recorded, the related revenue is deferred in both the government-wide and fund
financial statements and will not be recognized as revenue until the year for which it is levied.
Property taxes are levied as of July 1 on property values assessed as of January 1 of the previous year.
The tax levy is divided into two billings. The billings are due September 1 and March 1. On September
30 and March 31,the bill becomes delinquent, and penalties and interest may be assessed by the City.
Inventories and Prepaid Items
Inventories included in the governmental funds are valued at cost using the first-in first-out (FIFO)
method. The costs of governmental fund inventories are recorded as expenditures when consumed rather
than when purchased.
Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on
the FIFO method.
Inventories included in internal service funds are stated at the lower of cost(FIFO method) or market and
consist of consumable supplies. The cost of these supplies is recorded as an expense at the time they are
removed from inventory for use.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The costs of governmental fund prepaids are recorded as expenditures when consumed
rather than when purchased.
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the 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.
62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g.,
roads, bridges, sidewalks, and similar items), are reported in the applicable governmental or
business-type activities columns in the government-wide statement of net position and in the proprietary
funds statement of net position. Capital assets are defined by the govermnent as assets with an initial,
individual cost of more than $100,000 for infrastructure and intangible assets, $20,000 for building
assets, and $10,000 for the remaining assets, and an estimated useful life of more than one year. Such
assets are recorded at historical cost or estimated historical cost if purchased or constructed. Donated
capital assets are recorded at estimated fair market value at the date of donation. The costs of normal
maintenance and repair not adding to the value of the asset or materially extending asset lives are not
capitalized. All of the City's infrastructure has been recorded, including infrastructure acquired prior to
June 30, 1980.
Major outlays for capital assets and improvements are capitalized as projects are constructed. There was
no interest incurred during the construction phase of capital assets of business-type activities to capitalize
with the value of the assets constructed in the current year.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings 40 to 125
Improvements other than buildings 15 to 50
Machinery and equipment 2 to 30
Infrastructure and intangibles 15 to 75
Compensated Absences
The City allows employees to accumulate a limited amount of earned but unused vacation and sick pay
benefits. Vacation pay is payable to employees upon retirement or termination. Sick pay is payable only
upon retirement, in which event, employees with twenty years or more of service are paid 100% of their
accrued sick leave balance over a five year period. All vacation pay and applicable sick pay benefits are
accrued when incurred in the government-wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net position. Bond premiums and
discounts, and deferred amounts on refunding are deferred and amortized over the life of the bonds using
the straight-line method. Bonds payable are reported net of the applicable bond premium or discount.
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
Deferred inflows of Resources
Although certain revenues are measurable,they are not available. Available means collected within the
current year or expected to be collected soon enough thereafter to be used to pay liabilities of the current
year. Deferred inflows of resources in the governmental fund financial statements represent the amount
of assets that have been recognized, but the related revenue has not been recognized since the assets are
not collected within the current year or expected to be collected soon enough thereafter to be used to pay
liabilities of the current year. Deferred inflows of resources consist of property tax receivable and other
receivables not collected within sixty days after year end.
Deferred inflows of resources in the Statement of Net Position consist of succeeding year property tax
and tax increment financing receivable that will not be recognized as revenue until the year for which
they are levied.
Net PositionlRund Balance
The Dubuque Metropolitan Area Solid Waste Agency's restricted net position represents outside
third-party restrictions and amounts restricted for minority interest of the Agency. The Agency is
restricted to using certain amounts for purposes specified by state statute. The net position restricted for
minority interest is calculated at 22.7% of unrestricted net position, based on the 1976 revenue bond
resolution authorizing the issuance of revenue bonds for the construction of the landfill.
In the government-wide and proprietary fund financial statements, net position is displayed in three
components as follows:
• Net investment in capital assets - This consists of capital assets, net of accumulated depreciation,
less the outstanding balances of any bonds, notes or other borrowings that are attributable to the
acquisition, construction, or improvement of those assets. Net investment in capital assets
excludes unspent debt proceeds. Unspent debt proceeds were $12,880,825 for the governmental
activities and $11,889,284 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, 2014 consists of $28,488 for debt service and $51,580 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.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 1—SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In the governmental fund financial statements,fund balances are classified as follows:
• Nonspendable: Nonspendable fund balances cannot be spent because they are not expected to be
converted to cash or they are legally or contractually required to remain intact.
• Restricted: Restricted fund balances are restricted to specific purposes when constraints placed
on the use of the resources are either externally imposed by creditors, grantor or state or federal
laws or imposed by law through constitutional provisions or enabling legislation.
• Committed: Committed fund balances can be used only for specific purposes determined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year-end.
• 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,Budget Director, and Finance Director.
• Unassigned: Unassigned fund balances are amounts not included in the other spendable
classifications.
When an expenditure is incurred for purposes for which amounts in the committed, assigned, or
unassigned fund balance classifications could be used, the City first considers the committed to be spent
and then the assigned and unassigned,respectively.
The budget guideline of the City of Dubuque maintains a General Fund working balance or operating
reserve of 10% of the total General Fund operating budget requirements, or approximately $4,363,273
for fiscal year 2014. 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.
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 2—DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2014:
America's River Project $ 1,605
Internal Service Funds
Garage Service $ 40,712
General Service $ 38,608
Workers'Compensation Reserve $ 436,971
The General Service and Garage Service deficit will be addressed during next fiscal year's reallocation
of expenses. The Worker's Compensation Reserve deficit is a result of a number of projected settlements
at fiscal year-end that will be paid during next fiscal year with additional funding to cover.
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS
Cash on Hand. Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year-end was $14,221 for the City and $800 for the Dubuque
Metropolitan Area Solid Waste Agency.
Deposits. At year-end,the City's carrying amount of deposits was $36,000,038, and the bank balance was
$37,773,663 The City's deposits in banks at June 30, 2014, 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
$6,018,180, and the bank balance was $6,909,179. The Agency's deposits in banks at June 30, 2014,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
Investments. As of June 30, 2014, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturities(In Years)
More than
Investment Type Less Than 1 1 to 5 6 to 10 10 Total
Money Market Funds-
U.S. Treasury $ 539,824 $ 2,189,788 $ $ - $ 2,729,612
U.S. Treasury Securities 1,083,638 6,464,493 2,550,371 10,098,502
Federal Agency Obligations 1,912,347 7,282,065 1,647,712 5,147,872 15,989,996
Corporate Stock 93,642 - - - 93,642
$ 3,629,451 $ 15,936,346 $ 1,647,712 $ 7,698,243 $ 28,911,752
The City and the Dubuque Metropolitan Solid Waste Agency are authorized by statute to invest public
funds in obligations of the United States government, its agencies and instrumentalities; certificates of
deposit or other evidences of deposit at federally insured depository institutions approved by the City
Council or Board of Trustees and the Treasurer of the State of Iowa; prime eligible bankers acceptances;
certain high rated commercial paper; perfected repurchase agreements; certain registered open-end
management investment companies; certain joint investment trusts; and warrants or improvement
certificates of a drainage district
Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Permanent Trust
Fund.
Interest Rate Risk. The City's investment policy limits the investment of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Risk. The City's investment policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City's investments in Money Market Funds and US Agencies were
rated AAA.
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. 67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 3—CASH ON HAND,DEPOSITS,AND INVESTMENTS (continued)
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investments earnings
associated with other funds. These funds are the employee benefits, community development, tort
liability, road use tax, cable TV, general construction, transit system, general service, garage service, and
stores/printing funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2014.
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 $ 14,221
Carrying amount of deposits 36,000,038
Carrying amount of investments 28,911,752
Total $ 64,926,011
Government-wide
Cash and pooled cash investments $ 43,785,533
Cash and pooled cash investments-temporarily restricted 19,968,698
Cash and pooled cash investments-permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 1,102,368
Total $ 64,926,011
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 $ 800
Carrying amount of deposits 6,018,180
Total $ 6,018,980
Cash and pooled cash investments $ 1,528,040
Cash and pooled cash investments-temporarily restricted 4,490,940
Total $ 6,018,980
A reconciliation of cash and investments as shown on the government-wide statement of net position for the
Dubuque Initiatives and Subsidiaries(December 31, 2013)follows:
Deposits $ 942,548
Investment in Dubuque Food Coop 200,000
Repurchase agreement 563,916
Beneficial interest in assets held by others 1,339,034
Total $ 3,045,498
Cash and pooled cash investments $ 1,444,195
Cash and pooled cash investments-restricted 262,269
Cash and pooled cash investments-temporarily restricted 1,339,034
Total $ 3,045,498
68
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 4-NOTES RECEIVABLE
The City provides low interest and low 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 asjob creation for economic development or residency
requirements community development. Loans are secured by mortgage liens against the property.
At June 30, 2014 the City had the follow notes receivable.
Economic Development Notes Receivable:
Original Interest Current
Balance Rate Issued Maturity Balance Portion
Downtown Rehabilitation Loan Program
At Last Fluid Power Co. $ 17,200 3 % 1998 6/1/2018 $ 5,366 $ 1,282
Butt's Florist,Inc. 300,000 3 2011 7/1/2031 300,000 -
Clark Wolff 150,000 3 2001 5/1/2022 70,268 7,984
Dubuque Museum of Art 300,000 3 1999 7/1/2021 173,522 22,322
Grand Opera House #1-02 73,000 3 2002 2/1/2023 46,117 4,731
Greenfield, Jane 188,000 3 1998 10/1/2019 76,610 13,448
GronenAdaptive 300,000 2 2006 5/1/2036 198,162 7,278
Hartig Realty III,L.C. 300,000 3 2009 9/1/2029 280,000 11,214
Interstate Building LLLP 300,000 3 2010 9/22/2015 300,000 12,015
James Madison,Inc. 300,000 3 2008 9/18/2028 300,000 16,446
Lower Main Development,LLC 300,000 3 2006 3/1/2026 170,682 11,612
Moore, Jorga 55,442 3 1999 5/1/2019 20,968 3,690
Security Partners,L.P. 300,000 3 2001 8/1/2021 67,045 13,588
Town Clock Building Co. 300,000 3 2001 8/1/2021 154,790 19,657
Urban Development Action Grant
40 Main,LLC-Note A 300,000 - 2009 7/1/2016 300,000 -
Downtown Housing Incentive Loan
Caradco Landlord,LLC 4,500,000 3 2012 6/1/2030 4,500,000 -
Dubuque River Rides 64,000 - 2012 4/30/2016 41,600 12,800
40 Main Real Estate Loan 156,583 2009 11/1/2015 156,583 -
Sales Tax Construction
DB&T Community
Development Corporation 1,700,000 2012 2/1/2032 1,700,000 -
$ 8,861,713 $ 158,067
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
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 % $ 427,903 $ 32,000
Local Housing Assistance Program (LHAP) 6 150,162 8,000
Homebuyers Assistance Program 6 2,728,185 188,000
Infill 6 336,805 8,000
Residential Rehab Program 6 320,010 30,000
RRP Reserve - 77,188 -
Washington Neighborhood Revitalize - 306,851 15,000
The Accessibility Rehabilitation Program (for
rentals) 6 813,732 44,000
HOME Program (1) - 459,097 92,000
Historic Preservation Revolving Loan
Fund/Historic Preservation Housing Forgivable
Loan Program 6 81,271 12,000
5,701,204 429,000
(1)Principal payments deferred in one tenant is low income
At December 31, 2013,Dubuque Initiatives and Subsidiaries had the following notes receivable:
Lower Main Development, 4.00%,unsecured,matures August 2018 S 72,440
City of Dubuque, 5.00%,unsecured,matures July 2023 297,925
Roshek Building Investment Fund, LLC, 4.74%, collateralized by a
pledge agreement,matures June 2039 4,936,873
Roshek Building Investment Fund, LLC, 4.74%, collateralized by a
pledge agreement,matures June 2039 5,294,384
Total notes receivable 10,601,622
Less: current maturities (38,024)
Noncurrent portion 10.563.598
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 5—INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2014, include amounts due to/from other funds and advances due to/from
other funds. Interfund balances are as follows:
Due From Due To
Other Funds Other Funds
Governmental activities:
General Fund $ 5,052,654 $ -
Internal Service - 162,118
Business-type activities:
Stormwater Utility 4,817,539
Nonmajor - 72,997
$ 5,052,654 $ 5,052,654
These balances result from a time lag between the date that 1)the internal service funds goods and
services are provided or reimbursement occurs, 2)transactions are recorded in the accounting system
and 3)payments between funds are made.
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 5—INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2014, consisted of the following:
Transfers From
Tax Sandary Stonn INemal
Increment General Nonmjor Water Sewer' Water Parkin, No jor Service
Transfer to General Financing Condrudion 6overxvnmtal Utility Utility Utility Rasps Enterprise Fwd Total
General $ - $ 191,86] $ 292,542 $ 5,726,029 $ 1,6]9 $ 2,637 $ 1,508 $ - $ 30,621 $ 4,134 $ 6,251,017
Tax in¢ernerR financing - - - - - - - 410,385 - - 410,385
General cendruction - - - 95,079 - - - - - - 95,019
No jor goverxvnental 1,611,607 6,596,542 - 817,886 80,000 - - - - - 9,106,035
Waterutility - - - 20,367 - - - - - - 20,361
Stortmvater utility 261,471 - - 88 - - - - - - 267,559
No jor enterprise 514,707 - - 700,517 - - - - - - 1,615,284
$ 2,853,785 $ 6,788,409 $ 292,542 $ 7,360026 $ 81,619_$ 2637 $ 1508 $ 410,385 $ 30621 $ 4,134 $ 17,825,726
Transfer ofcapital assets
to business type adivities 1,008,466
Total $ 18,834,192
In the fund financial statements, total transfers out of $18,834,192 are greater than total transfers in of
$17,825,726 because of the treatment of transfers of capital assets to the business type activities. Net
capital assets of$1,008,466 were transferred from governmental capital assets to parking. No amounts
were reported in the governmental funds, as the amounts did not involve the transfer of financial
resources.
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from
the funds collecting the receipts to the debt service fund as debt service payments become due, (3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations, and(4)fund capital projects.
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 6—CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2014,was as follows:
Primary Government:
Governmental activities:
Beginning Transfers Transfers Ending
Balance 1n Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 65,196,318 $ - $ (495,000) $ 2,516,307 $ (137,098) $ 67,080,527
Construction in progress 33,798,734 (513,466) 16,704,893 (5,935,245) 44,054,916
Total Capital assets,not
bang depreciated 98,995,052 (1,008,466) 19,221,200 (6,072,343) 111,135,443
Capital assets,bang
depreciated:
Buildings 126,173,378 - - 1,425,963 - 127,599,341
Improvements other
than buildings 22,100,379 - - 118,715 - 22,219,094
Machinery and equipment 38,179,274 - - 2,267,520 (928,578) 39,518,216
Infrastructure 213,219,583 2,711,996 215,931,579
Total capital assets,bang
depreciated 399,672,614 6,524,194 (928,578) 405,268,230
Less accumulated
depreciation for:
Buildings (32,097,059) - - (2,181,711) - (34,278,770)
Improvements other
than buildings (7,650,425) - - (786,607) - (8,437,032)
Machinery and equipment (18,676,763) - - (2,633,135) 895,779 (20,414,119)
Infrastructure (60,416,083) (3,603,151) (64,019,234)
Total accumulated
depreciation (118,840,330) (9,204,604) 895,779 (127,149,155)
Total capital assets,bang
depreciated,net 280,832,284 (2,680,410) (32,799) 278,119,075
Govemmeatal activities
capital assets,net $ 379,827,336 $ $ (1,008,466) $ 16,540,790 $ (6,105,142) $ 389,254,518
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 6—CAPITAL ASSETS (continued)
Business-type activities:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 17,728,352 $ 495,000 $ - $ 499,289 $ - $ 18,722,641
Construction in progress 2,250,248 513,466 13,209,937 (8,994,829) 6,978,822
Total Capital assets,not
bang depreciated 19,978,600 1,008,466 13,709,226 (8,994,829) 25,701,463
Capital assets,bang
depreciated:
Buildings 133,810,040 - - 2,197,338 - 136,007,378
Improvements other
than buildings 91,529,793 - - 2,525,702 - 94,055,495
Machinery and equipment 90,018,973 5,354,041 (40,871) 95,332,143
Total capital assets,bang
depreciated 315,358,806 10,077,081 (40,871) 325,395,016
Less accumulated
depreciation for:
Buildings (43,939,662) - - (1,727,491) - (45,667,153)
Improvements other
than buildings (23,066,353) - - (1,549,323) - (24,615,676)
Machinery and equipment (23,371,859) (3,380,810) 40,871 (26,711,798)
Total accumulated
depreciation (90,377,874) (6,657,624) 40,871 (96,994,627)
Total capital assets,bang
depreciated,net 224,980,932 3,419,457 228,400,389
Business-type activities
capital assets,net $ 244,959,532 $ 1,008,466 $ $ 17,128,683 $ (8,994,829) $ 254,101,852
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 6—CAPITAL ASSETS (continued)
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety $ 677,953
Public works 4,712,659
Health and social services 7,050
Culture and recreation 2,112,367
Community and economic development 61,629
General government 1,622,208
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 10,738
Total depreciation expense -governmental activities $ 9,204,604
Business-type activities:
Sewage disposal works $ 3,138,474
Water utility 957,743
Stormwater utility 695,847
Parking facilities 1,079,449
Refuse collection 275,448
Salt 4,762
Transit system 505,901
Total depreciation expense -business-type activities $ 6,657,624
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 6—CAPITAL ASSETS (continued)
Dubuque Metropolitan Area Solid Waste Agency(Component Unit):
Beginning Transfers Transfers Darling
Balance In Out Increases Decreases Balance
Capital assets,not being
depreciated:
Land $ 2,776,217 $ - $ - $ 176,449 $ - $ 2,952,666
Construction in progress
Total Capital assets,not
bang depreciated 2,776,217 176,449 2,952,666
Capital assets,bang
depreciated:
Buildings 65,922 - - 22,573 - 88,495
Improvements other
than builrlings 9,940,887 - - 365,521 - 10,306,408
Machinery and equipment 3,563,483 173,647 3,737,130
Total capital assets,bang
depreciated 13,570,292 561,741 14,132,033
Less accumulated
depreciation for:
Buildings (49,382) - - (1,096) - (50,478)
Improvements other
than builrlings (6,093,947) - - (332,179) - (6,426,126)
Machinery and equipment (1,984,020) (279,171) (2,263,191)
Total accumulated
depreciation (8,127,349) (612,446) (8,739,795)
Total capital assets,bang
depreciated,net 5,442,943 (50,705) 5,392,238
Dubuque Metropolitan Area
Solid Waste,capital assets $ 8,219,160 $ $ $ 125,744 $ $ 8,344,904
Depreciation expense of$612,446 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7-LONGTERM 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 $106,915,000.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. These
bonds generally are issued as serial bonds with varying amounts of principal maturing annually and with
interest payable semi-annually. General obligation bonds outstanding at June 30, 2014, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Corporate purpose Series 2003 10/15/2003 06/01/04-06/01/23 3.40-4.75 % $ 2,110,000 $ 1,130,000
Corporate purpose Series 2005 04/18/2005 06/01/06-06/01/24 3.40-5.00 9,015,000 4,275,000
Corporate purpose Series 2006A 04/03/2006 06/01/07-06/01/25 3.80-4.20 2,900,000 1,970,000
Corporate purpose Series 2007A 12/01/2007 06/01/09-06/01/17 3.45-3.65 1,055,000 390,000
Corporate purpose Series 2008A 11/04/2008 06/01/09-06/01/28 3.75-4.80 3,885,000 3,040,000
Corporate purpose Series 2008B 11/04/2008 06/01/09-06/01/23 3.75-4.25 3,290,000 2,215,000
Corporate purpose
(taxable)Series 2008C 11/04/2008 06/01/09-06/01/18 5.25-5.50 2,465,000 1,560,000
Corporate purpose
(taxable)Series 2009A 11/10/2009 06/01/11-06/01/29 1.90-5.60 2,935,000 2,430,000
Corporate purpose
(taxable)Series 2009B 11/10/2009 06/01/11-06/01/29 1.50-5.50 11,175,000 9,330,000
Refunding Series 2009C 11/10/2009 06/01/10-06/01/21 2.00-4.00 8,885,000 5,500,000
Corporate purpose
and refunding Series 2010A 08/30/2010 06/01/11-06/01/30 2.00-3.00 4,470,000 3,780,000
Corporate purpose Series 201013 08/30/2010 06/01/12-06/01/30 1.00-4.15 2,675,000 2,400,000
Corporate purpose Series 2010C 08/30/2010 06/01/12-06/01/30 2.00-3.00 2,825,000 2,480,000
Corporate purpose Series 2011A 09/01/2011 06/01/12-06/01/31 2.00-4.00 6,330,000 5,805,000
Corporate purpose
(taxable)Series 201113 09/01/2011 06/01/13-06/01/26 2.25-4.35 1,590,000 1,390,000
Corporate purpose Series 2012A 03/15/2012 06/01/14-06/01/31 2.00-3.00 4,380,000 4,175,000
Corporate purpose
and refund Series 2012B 03/15/2012 06/01/13-06/01/31 2.00-3.13 7,495,000 7,075,000
Corporate purpose 06/28/2012 06/01/14-06/01/32 2.00-3.90 6,965,000 6,700,000
(taxable)Series 2012C
Corporate purpose Series 2012D 06/28/2012 06/01/14-06/01/32 2.00-3.46 7,175,000 6,705,000
Corporate purpose Series 2012E 12/12/2012 06/01/14-06/01/32 2.00-3.00 3,640,000 3,445,000
Corporate purpose
(taxable)Series 2012F 12/10/2012 06/01/14-06/01/22 1.00-2.20 1,035,000 1,035,000
Corporate purpose
andrefund Series 2012G 11/28/2012 06/01/14-06/01/17 1.00-1.25 950,000 575,000
Corporate purpose Series 2012H 12/10/2012 06/01/15-06/01/32 2.00-3.00 2,385,000 2,385,000
Corporate purpose(taxable)
and refund Series 2012I 12/04/2013 06/01/13-06/01/21 0.30-2.20 7,285,000 5,195,000
$ 106,915,000 $ 84,985,000
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM 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
$ $ $
2015 $ 4,354,450 1,647,622 2,205,549 1,204,702
2016 4,426,717 1,537,836 2,258,283 1,147,636
2017 4,592,925 1,415,991 2,327,075 1,082,294
2018 4,743,029 1,275,977 2,046,971 1,011,638
2019 4,191,224 1,126,861 2,098,777 944,536
2020-2024 15,085,296 3,853,213 10,229,817 3,588,860
2025-2029 10,637,407 1,180,523 9,348,704 1,593,504
2030-2032 4,171,150 248,265 2,267,629 133,518
Total $ 52,202,198 $ 12,286,288 $ 32,782,805 $ 10,706,688
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, 2014, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Vessel Systems 12/31/03 12/30/05-06/30/15 8.00 % $ 140,000 $ 19,361 $ 19,361
Diamond Jo Parking Ramp 10/16/07 06/01/11-06/01/37 7.50 23,025,000 21,750,000 380,000
$ 23,165,000 $ 21,769,361 $ 399,361
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2015 $ 399,361 $ 1,632,418
2016 410,000 1,602,750
2017 440,000 1,572,000
2018 510,000 1,539,000
2019 475,000 1,505,375
2020-2024 3,185,000 6,881,625
2025-2029 4,565,000 5,516,000
2030-2034 6,555,000 3,506,250
2035-2037 5,230,000 803,250
Total $ 21,769,361 $ 24,558,668
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM 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. The City issued $7,190,000 Iowa Sales Tax Incremental revenue
bonds for flood mitigation capital improvements to the Bee Branch storm water project
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, 2014, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Water Utility Series 2008D 11/04/08 06/01/10-06/01/23 3.00-5.00% $ $ 1,195,000 $ 835,000
Water Utility Series 201OD 09/21/10 06/01/12-06/01/30 2.00-4.00 5,700,000 5,135,000
Sales Tax Incremental 2014 06/14/14 06/01/23-06/01/29 4.00-5.00 7,190,000 7,190,000
$ $ 14,085,000 $ 13,160,000
The Water Utility revenue debt covenants include a requirement for the utility to produce net revenues of
at least 125%of the current year debt service requirement and all other revenue debt During the year
ended June 30, 2014,the City did not meet the revenue bond covenants for Water Revenue Bonds by
$698,589. Water distribution experienced higher than normal maintenance expenses due to an
abnormally cold weather and associated water main breaks. Water rates were increased by 9%in fiscal
year 2014 and an additional 5%increase in fiscal year 2015. Revenue for the first quarter of fiscal year
2015 is 5%above the same period in fiscal year 2014. Water rates will be increased a projected 9%each
subsequent fiscal year until the bond covenant is met
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Business-type Activities
June 30 Principal Interest
2015 $ 275,000 $ 527,683
2016 285,000 533,925
2017 295,000 525,360
2018 305,000 516,328
2019 315,000 505,738
2020-2024 2,975,000 2,345,203
2025-2029 8,205,000 1,208,925
2030 505,000 20,200
Total $ 13,160,000 $ 6,183,362
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM DEBT (continued)
Notes Payable. Notes payable have been issued to provide funds for economic development and for the
purchase of capital assets. Notes payable at June 30, 2014, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Adams Company 02/13/04 06/01/05-06/01/15 4.07 % $ 500,000 $ 45,455 $ 45,455
Lower Main Development 06/30/04 12/31/06-06/30/16 8.00 182,000 48,250 23,294
Theisen Supply 11/22/06 12/31/08-06/30/18 8.25 810,323 408,250 88,086
40Main LLC 08/06/09 06/01/11-06/01/37 6.50 690,529 528,080 61,592
$ 2,182,852 $ 1,030,035 $ 218,427
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2015 $ 218,427 $ 70,062
2016 186,189 55,690
2017 173,666 41,743
2018 195,881 28,381
2019 79,827 15,582
2020-2021 176,045 14,764
Total $ 1,030,035 S 226,222
80
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM DEBT (continued)
Capital Loan Notes. Revenue capital loan notes have been issued for the planning and construction of
sewer, stormwater, and water capital projects through the State of Iowa State Revolving Loan Funds. the
City issued an additional $1,029,000 of SRF debt in 2014 as part of the Bee Branch stormwater project
The City has pledged income derived from the acquired or constructed assets to pay debt service. Capital
loan notes payable at June 30, 2014, are as follows:
Amount
Date Final Interest Amount Outstanding Current
Purpose Authorized Maturity Date Rates Authorized End of Year Portion
Upper Bee Branch Sewer 12/28/06 06/01/30 3.25 % $ 1,657,821 $ 617,821 $ 25,735
Clean Water 01/14/09 06/01/28 3.25 1,847,000 1,402,000 81,000
Drinking Water 10/18/07 06/01/28 3.25 1,037,000 695,000 40,000
North Catfish Creek Stormwater 01/13/10 06/01/30 3.25 998,000 678,000 38,000
North Catfish Creek Sewer 01/13/10 06/01/30 3.25 1,141,000 774,000 33,000
Water Meter Replacement Stormwater 02/12/10 06/01/30 3.25 4,338,000 2,816,000 126,500
Water Meter Replacement Sewer 02/12/10 06/01/30 3.25 4,338,000 2,816,000 126,500
Upper Bee Branch Sewer 10/27/10 06/01/41 3.25 7,850,000 7,359,000 174,000
Water and Resource Recovery Center 08/18/10 06/01/39 3.25 74,285,000 62,821,386 2,311,000
Cogeneration 05/17/13 06/01/33 3.25 3,048,000 2,721,838 128,000
Bee Branch Stormwater 02/18/14 06/01/33 3.25 1,029,000 223,904 43,000
$ 101,568,821 $ 82,924,949 $ 3,126,735
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year Business-type Activities
June 30 Principal Interest
2015 $ 3,126,735 $ 1,803,168
2016 3,149,578 1,732,568
2017 3,209,449 1,661,249
2018 3,282,348 1,588,460
2019 3,356,181 1,513,959
2020-2024 17,719,418 6,400,585
2025-2029 19,657,652 4,300,712
2030-2034 18,870,202 2,048,219
2035-2039 9,769,385 417,795
2040-2041 784,000 38,675
Total $ 82,924,948 $ 21,505,390
At June 30, 2014,the City of Dubuque had $12,594,873 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
majority of the remaining available funds in fiscal year 2015. The Sewer Utility revenue capital loan notes
covenants include a requirement for the utility to produce net revenue of at least 110%of the current year
debt service requirement. During the year ended June 30, 2014, the City did not meet the covenant for Sewer
revenue capital loan notes by $851,857. Although sewer rates were increased by 17%in fiscal year 2014,the
metered revenue was approximately $250,000 less than anticipated due to lower usage. Expenses for utilities
and supplies and services were approximately$640,000 over fiscal year 2103. Sewer rates were increased an
additional 5%for fiscal year 2015. Sewer rates will be increased a projected 9%each subsequent fiscal year
until bond covenant is met.
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7-LONGTERM DEBT (continued)
Loans Payable. Loans payable have been issued to fund several City projects. Loans payable at June 30,
2014, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Parking Lot Purchase 07/08/08 01/01/09-07/01/23 5.0 % $ 400,000 $ 286,262 $ 24,208
Building Purchase Agreement 02/01/10 02/01/10-02/01/16 0.0 330,000 141,428 47,143
Iowa Finance Authority 08/26/11 06/01/20-06/01/30 3.0 4,500,000 4,500,000 -
Bowling&Beyond Inc. 07/25/12 12/04/12-12/04/32 0.0 1,000,000 900,000 50,000
$ 6,230,000 $ 5,827,690 $ 121,351
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2015 $ 97,143 $ 135,000 $ 24,208 $ 14,014
2016 97,143 135,000 25,433 12,790
2017 97,143 135,000 26,720 11,501
2018 50,000 135,000 28,074 10,148
2019 50,000 135,000 29,495 8,727
2020-2024 1,042,679 628,620 152,332 19,669
2025-2029 1,264,748 490,572 - -
2030-2032 2,842,572 79,127 - -
Total $ 5,541,428 S 1,873,319 S 286,262 S 76,849
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM DEBT (continued)
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2014, was as
follows:
Balance
Beginning Balance End Due Within
of Year Additions Reductions of Year One Year
Governmental activities:
General obligation bonds $ 56,122,022 $ - (3,919,824) $ 52,202,198 $ 4,354,450
Unaccreted premium 556,337 - (40,788) 515,549 -
Unamortizeddiscounts (161,194) - 12,095 (149,099) -
Totalgeneralobligationbonds 56,517,165 - (3,948,517) 52,568,648 4,354,450
Tax increment financing bonds 22,142,335 - (372,974) 21,769,361 399,361
Unamortized discounts (221,798) - 8,872 (212,926) -
Total tax increment financing bonds 21,920,537 - (364,102) 21,556,435 399,361
Notes payable 1,235,903 - (205,867) 1,030,036 218,427
Loans payable 5,638,571 - (97,143) 5,541,428 97,143
Compensated absences 6,223,828 3,666,328 (3,360,411) 6,529,745 272,783
Net OPEB liability 2,726,324 324,188 - 3,050,512 -
Total governmental activities $ 94,262,328 $ 3,990,516 $ (7,976,040) $ 90,276,804 $ 5,342,164
Business-type activities:
General obligation bonds $ 34,982,978 $ - $ (2,200,173) $ 32,782,805 $ 2,205,549
Unaccreted premium 105,403 - (5,557) 99,846 -
Unamortized discounts (167,249) - 23,460 (143,789) -
Totalgeneralobligationbonds 34,921,132 - (2,182,270) 32,738,862 2,205,549
Revenue bonds 6,240,000 7,190,000 (270,000) 13,160,000 275,000
Unaccreted premium 28,903 971,310 (1,606) 998,607 -
Unamortizeddiscounts (8,604) - 1,434 (7,170) -
Total revenue bonds 6,260,299 8,161,310 (270,172) 14,151,437 275,000
Capital loan notes 75,414,173 10,318,778 (2,808,000) 82,924,951 3,126,735
Loans payable 309,304 - (23,041) 286,263 24,208
Compensated absences 1,075,636 566,497 (645,446) 996,687 28,608
Net OPEB liability 577,940 64,479 - 642,419 -
Total business-type activities $ 118,558,484 $ 19,111,064 $ (5,928,929) $ 131,740,619 $ 5,660,100
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM DEBT (continued)
For the governmental activities, compensated absences and net OPEB liability are generally liquidated by the
General Fund, Community Development Fund, and Section VIII Housing Fund.
Dubuque Initiatives and Subsidiaries. At December 31, 2013,Dubuque Initiatives and Subsidiaries had the
following notes and loan payable:
Note payable to Dubuque Bank&Trust(Loan A),with the
following interest rate provisions: fixed interest rate of 5.85%
during the"Fixed Interest Rate Period"; during the"Initial
Loan A Variable Interest Rate Period", an interest rate equal
to the greater of the `Loan A Index Rate"plus 2.75%and
5.00%; during the "Second Loan A Variable Interest Rate
Period", an interest rate equal to the`Loan A Index Rate"
plus 2.75%. Monthly interest only payments are due with
final principal and interest due at maturity on June 15, 2029.* $ 5,294,384
Note payable to Dubuque Bank&Trust(Loan B),with the
following interest rate provisions: fixed interest rate of 5.85%
during the"Fixed Interest Rate Period", during the"Variable
Interest Period: an interest rate equal to the`Loan A Index
Rate"plus 2.75%. Monthly interest only payments due until
March 2010, principal and interest payments of$54,167 begin
on April 1, 2010. This note matures on June 15, 2019.* 3,109,135
Note payable to ICD VIII,LLC(QLICI QA1 Loan),fixed
interest rate of 4.74%. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039.** 5,897,192
Note payable to USBCDE Sub-CDE XXXV, LLC(QLICI
QA2 Loan),fixed interest rate of 4.47%. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039.** 5,897,192
Note payable to ICD VIII,LLC(QLICI QB1 Loan),fixed
interest rate of 1.80%. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039.** 3,902,808
Note payable to USBCDE Sub-CDE XXXV, LLC(QLICI
Q132 Loan),fixed interest rate of 1.80%. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039.** 4.002.808
28,103,519
Less: Current maturities (756.636)
Noncurrent liability S 27.346.883
84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 7—LONGTERM DEBT (continued)
The following is a schedule by years of the principal maturities of long-term debt obligations for the years
ending June 30:
2014 $ 756,636
2015 803,036
2016 851,743
2017 697,720
2018 -
Thereafter 24,994,384
S 28,103,519
* - Notes A, B, and D payable to Dubuque Bank& Trust are collateralized by a security agreement dated
June 22, 2009, a collateral assignment of tax credit purchase agreement dated June 22, 2009, and a collateral
assignment of fund loan documents dated June 22, 2009.
** - These notes payable to various entities are collateralized by, among other things, a certain Open-End
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing of even date herewith
executed by Borrower, as Mortgagor, to Administrative Agent, in its capacity as the Administrative Agent for
the Lenders and for the benefit of the Lenders, as Mortgagee, encumbering the Property.
Forgivable loan. On February 19, 2009, the City of Dubuque was awarded a grant from the Iowa Department
of Economic Development in the amount of$450,000. The City of Dubuque awarded the grant to Dubuque
Initiatives & Subsidiaries to assist the Organization in starting the Roshek Building project. The grant is a
"forgivable loan". The funds will be released on a reimbursement basis,upon the City of Dubuque submitting
paperwork to Iowa Department of Economic Development documenting $450,000 in building related costs.
On July 1, 2011, the Iowa Department of Economic Development determined the project met the
reimbursement requirements, therefore the loan was forgiven. The balance of the forgivable loan was
recorded as grant income at December 31, 2011.
85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
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
$10,821,548 for 2014. Coverage from a private insurance company is maintained for losses in excess of
the stop-loss amount. All claims handling procedures are performed by a third-party claims administrator.
Incurred but not reported claims have been accrued as a liability based upon the claims administrator's
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense.
The City has established a Workers' Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Workers' compensation benefits were
self-insured up to a specific stop-loss amount of $500,000, and an aggregate-stop loss consistent with
statutory limits for 2014. 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 purchases private insurance to include sworn Police Officers and Fire Fighters
medical claims under a self-insured retention of$600,000 for each accident.
All funds of the City participates in both programs and makes 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 $749,763 in the Health Insurance Reserve
Fund and $1,082,310 in the Workers' Compensation Reserve Fund is based on the requirements of
Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims
be reported if information prior to the issuance of the financial statements indicates that it is probable
that a liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the
fiscal years ended June 30, 2014 and 2013, are summarized as follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 30, 2012 $ 386,900 $ 1,137,168
Claims and changes in estimates during fiscal year 2013 8,675,722 592,684
Claim payments (8,511,194) (648,768)
Liabilities at June 30, 2013 551,428 1,081,084
Claims and changes in estimates during fiscal year 2014 9,013,678 530,845
Claim payments (8,815,343) (529,619)
Liabilities at June 30, 2014 $ 749,763 $ 1,082,310
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 8—RISK MANAGEMENT (continued)
The City is a member in the Iowa Communities Assurance Pool (Pool), as allowed by Chapter 670.7 of the
Code of Iowa. The Pool is a local government risk-sharing pool whose 701 members include various
governmental entities throughout the State of Iowa. The Pool was formed in August 1986 for the purpose of
managing and funding third-party liability claims against its members. The Pool provides coverage and
protection in the following categories: general liability, automobile liability, automobile physical damage,
public officials' liability, police professional liability, property, inland marine, and boiler/machinery. The
City acquires automobile physical damage coverage through the Pool. All other property, inland marine, and
boiler/machinery insurance is acquired through commercial insurance. There have been no reductions in
insurance coverage from prior years.
Each member's annual casualty contributions to the Pool fund current operations and provide capital. Annual
operating contributions are those amounts necessary to fund, on a cash basis, the Pool's general and
administrative expenses, claims, claims expenses, and reinsurance expenses due and payable in the current
year, plus all or any portion of any deficiency in capital. Capital contributions are made during the first six
years of membership and are maintained not to exceed 300 percent of the total current members' basis rates
or to comply with the requirements of any applicable regulatory authority having jurisdiction over the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual operating
contributions which are necessary to fund, on a cash basis, the Pool's general and administrative expenses
and reinsurance premiums, all of which are due and payable in the current year, plus all or any portion of any
deficiency in capital. Any year-end operating surplus is transferred to capital. Deficiencies in operations are
offset by transfers from capital and, if insufficient, by the subsequent year's member contributions. The City
has property insurance coverage in addition to the Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City's annual contributions to the Pool for the
year ended June 30, 2014,were $505,508.
The Pool uses reinsurance and excess risk-sharing agreements to reduce its exposure to large losses. The Pool
retains general, automobile, police professional, and public officials' liability risks up to $350,000 per claim.
Excess coverage is provided for claims exceeding $350,000 under various reinsurance agreements. Property
and automobile physical damage risks are retained by the Pool up to $250,000 each occurrence, each
location, with excess coverage reinsured on an individual-member basis.
The Pool's Iowa Risk Management Agreement with its members provides that in the event a casualty claim
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, 2014, settled claims have not exceeded the risk pool or reinsurance
company coverage since the Pool's inception.
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 8—RISK MANAGEMENT (continued)
Members agree to continue membership in the Pool through the Iowa Risk Management Agreement for a
period of not less than one full year. After such period, a member who has given 60 days' prior written notice
may withdraw from the Pool. Upon withdrawal, payments for all claims and claims expenses become the sole
responsibility of the withdrawing member,regardless of whether a claim was incurred or reported prior to the
member's withdrawal. Members withdrawing within the first six years of membership may receive a partial
refund of their capital contributions. If a member withdraws after the sixth year, the member is refunded 100
percent of its capital contributions. However, the refund is reduced by an amount equal to the annual
operating contribution which the withdrawing member would have made for the one-year period following
withdrawal and Cumulative Reserve Fund distributions.
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, 2014.
Litigation
The City's corporate counsel reported that as of June 30, 2014, various claims and lawsuits were on file
against the City.
The City has booked a payable for pending settlement of the Zaber V. City of Dubuque, class action lawsuit.
The City Council has approved a settlement agreement to pay $2.6 million,plus administrative costs, into a
settlement fund to be administered by Rust Consulting. The settlement agreement has not yet been approved
by the Iowa district court. The district court has concluded that refunds will not be automatic; customers must
file for a refund. The consulting firm believes that process may significantly reduce the number and amount
of refunds. The district court has not yet decided what happens to any unclaimed refunds. The plaintiffs have
requested that any unclaimed refunds either be paid to the State of Iowa or to some charitable entity. The City
has resisted that request and has taken the position that the unclaimed refunds should be returned to the City.
The corporation counsel estimated that all remaining potential settlements against the City not covered by
insurance would not materially affect the financial position of the City. The City has authority to levy
additional taxes (outside the regular limit)to cover uninsured judgments against the City.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2014. The City has additional commitments for signed construction contracts of
$25,241,197 as of June 30, 2014. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
88
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 9—COMMITMENTS AND CONTINGENT LIABILITIES (continued)
Debt Guarantee
The City has guaranteed debt issued by Dubuque Initiatives and Subsidiaries related to the rehabilitation of
the Roshek Building. The guarantee is limited to $25,000,000.
Dubuque Initiatives & Subsidiaries
Roshek Building, Inc. also anticipates receipt of State of Iowa Certified Historic Rehabilitation Tax Credit
('State credits') in excess of$10,000,000 and Federal Certified Historic Rehabilitation Tax Credits in excess
of$11,000,000. The funds will be used to retire debt The State credits were subject to a completion of the
rehabilitation project by December 31, 2010. Both Federal and State credits were subject to successful
approval of the project by the State of Iowa and National Park Service, such approval has been received. The
Organization has received all available Rehabilitation Tax Credits as of December 31, 2013. These credits
have a five year compliance period that will expire during 2014. The organization also received new market
tax credits during the project that carries a seven year compliance period, which expires during 2016.
Compliance has been maintained as of December 31, 2013.
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB)
The City implemented GASH Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits other Than Pensions prospectively during the year ended June 30, 2009.
Plan Description - The City operates a single-employer retiree benefit plan which provides postemployment
benefits for eligible participants enrolled in the City-sponsored plans, which include the employees of the
Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does not issue a stand-alone
financial report. The benefits are provided in the form of:
An implicit rate subsidy where pre-65 retirees receive health insurance coverage by paying a combined
retiree/active rate for the self-insured medical and prescription drug plan.
An explicit rate subsidy where the City pays the full cost of a $1,000 policy in the fully-insured life insurance
plan.
To be eligible for the health insurance coverage, retirees must be at least 55 years old, have completed 4
years of service, and be vested with either the Iowa Public Employee's Retirement System (IPERS) or the
Municipal Fire and Police Retirement System of Iowa (MFPRSI). In addition to the health eligibility
coverage requirements, one must have belonged to a bargaining group to be eligible for life insurance
benefits. There are approximately 548 active and 33 retired members in the plan. As of most recent actuarial
valuation report.
Funding Policy- The contribution requirements of plan members are established and may be amended by the
City. The City currently finances the retiree benefit plan on a pay-as-you-go basis.
89
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Annual OPEB Cost and Net OPEB Obligation - The City's annual OPEB cost is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with GASB
Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is projected to
cover normal cost each year and amortize any unfunded actuarial liabilities over a period not to exceed
30 years.
The following table shows the components of the City's annual OPEB cost for the year ended June 30, 2014,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 574,674
Interest on net OPEB obligation 168,199
Adjustment to annual required contribution (159,423)
Annual OPEB cost 583,450
Contributions made,net of retiree contributions (186,817)
Increase in net OPEB obligation 396,633
Net OPEB obligation, beginning of year 3,363,982
Net OPEB obligation, end of year $ 3,760,615
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end of
year net OPEB obligation was calculated by the actuary as the cumulative difference between the actuarially
determined funding requirements and the actual contributions for the year ended June 30, 2014.
For the year ended June 30, 2014, the City paid $629,444 for retiree claims. Plan members eligible for
benefits contributed $442,627 or 100% of the premium costs. The net resulted in City contributions of
$186,817.
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net OPEB
obligation as of June 30, 2014 are summarized as follows:
Percentage of Net
Annual Annual OPEB OPEB
Year Ended OPEB Cost Cost Contributed Obligation
June 30, 2014 $ 583,450 32.02 % $ 3,760,615
June 30, 2013 581,872 (3.98)% 3,363,982
June 30, 2012 584,004 34.45 % 2,758,966
Funded Status and Funding Progress -As of July 1, 2012,the most recent actuarial valuation date for the
period July 1, 2012 through June 30, 2013,the actuarial accrued liability was $5,720,577,with no
actuarial value of assets, resulting in an unfunded actuarial accrued liability(UAAL) of$5,720,577. The
covered payroll(annual payroll of active employees covered by the plan)was approximately $32,626,373
(2.5%) and the ratio of the UAAL to covered payroll was 18%. As of June 30, 2014, there were no trust
fund assets.
90
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 10—OTHER POST EMPLOYMENT BENEFITS (OPEB) (continued)
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumption about future employment, mortality, and the health care cost trend.
Actuarially determined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented
as Required Supplementary Information in the section following the Notes to Financial Statements,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the plan as understood by the
employer and the plan members and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that
point. The actuarial methods and assumptions used include techniques that are designed to reduce the
effects of short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent
with the long-term perspective of the calculations.
As of the July 1, 2012 actuarial valuation date, the projected unit credit actuarial cost method was used.
The actuarial assumptions include a 5%discount rate based on the City's funding policy. The projected
annual medical trend rate (inflation rate) is 8%. The ultimate medical trend rate is 5%. The medical
trend rate is reduced 1.0% each year until reaching the 5%ultimate trend rate. The underlying inflation
rate is 3%.
Mortality rates are from the RP2000 Group Annuity Mortality Tables, applied on a gender-specific basis.
Annual retirement and termination probabilities were developed consistent with the City's experience
and the IPERS and MFPRSI retirement patterns. Annual turnover rates were based on Scale T-2 of the
actuary's pension handbook.
Projected claim costs of the medical plan are $10,380 per year for retirees. The salary increase rate was
assumed to be 2.5% per year. The UAAL is being amortized as a level percentage of pay on an open
basis over 30 years.
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 11—EMPLOYEE RETIREMENT SYSTEMS
MFPRSI
The City contributes to the Municipal Fire and Police Retirement System of Iowa (Plan), which is a
cost-sharing, multiple-employer defined benefit pension plan administered by a Board of Trustees. The Plan
provides retirement, disability, and death benefits which are established by state statute to plan members and
beneficiaries. The Plan issues a publicly available financial report that includes financial statements and
required supplementary information. The report may be obtained by writing to Municipal Fire and Police
Retirement System of Iowa, 7155 Lake Drive, Suite 201, West Des Moines, Iowa, 50266.
For FY'14,plan members are required to contribute 9.40%of earnable compensation and the City is required
to contribute 30.12% of earnable compensation. Contribution requirements are established by state statute.
The City's contributions to the Plan for the years ended June 30, 2014, 2013, and 2012, were $3,906,483,
$3,334,793 and $3,177,159,respectively, which met the required minimum contribution for each year.
IPERS
The City contributes to the Iowa Public Employees Retirement System (IPERS) which is a cost-sharing
multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides
retirement and death benefits which are established by state statute to plan members and beneficiaries. IPERS
issues a publicly available financial report that includes financial statements and required supplementary
information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des Moines, Iowa,
50306-9117.
For FY '14, plan members are required to contribute 5.95% of their annual covered salary, and the City is
required to contribute 8.93% of annual covered payroll. Contribution requirements are established by state
statute. The City's contributions to IPERS for the years ended June 30, 2014, 2013, and 2012, were
$2,352,312, $2,197,655 and $2,074,758,respectively, equal to the required contributions for each year.
NOTE 12—LANDFILL CLOSURE AND POST CLOSURE CARE
State and federal laws and regulations require the Agency to place a final cover on each cell of its landfill site
when filled and to perform certain maintenance and monitoring functions at the site for thirty years after
closure.
Although closure and post closure care costs will be paid only near or after the date that each cell stops
accepting waste, the Agency reports a portion of these closure and post closure care costs as an operating
expense in each period based on landfill capacity used as of each statement of net position date. The
$3,926,497 reported as landfill closure and post closure care liability at June 30, 2014, 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 the use of 20.8%of cell 9. The Agency will recognize the remaining estimated cost of closure and
post closure care of$1,187,296 as the remaining capacity is filled.
These amounts are based on what it would cost to perform all closure and post closure care in 2014. The
Agency expects to close cells 5, 6, 7, and 8 in 2015. The Agency is making plans to construct a second
generation of cells to extend the life of the landfill to 2050. Actual cost may be higher due to inflation,
changes in technology, or changes in regulations.
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 12—LANDFILL CLOSURE AND POST CLOSURE CARE(continued)
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2014, funds have been restricted for closure and post closure
costs in the amount of$4,347,675.
NOTE 13—LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, airport property (hangars and terminal space), farm land,
parking areas, space for antennas on top of water towers, and concession areas under operating leases. The
most significant lease is the lease of the greyhound racing and gambling facility and related parking area to
the Dubuque Racing Association (DRA). The City's cost of the leased DRA assets total $10,144,771. The
carrying amount of the assets at June 30, 2014 is $6,726,624, with $142,423 of depreciation expense during
the year ended June 30, 2014. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2014,the DRA lease generated $5,275,653 in lease revenue.
NOTE 14—SUBSEQUENT EVENTS
On November 17, 2014 the City authorized $18,835,000 Tax-Exempt General Obligation Capital Loan
Notes, Series 2014B. The debt will fund Transit Building and Bus Stop Improvements; Ambulance
Replacement;Fire Station#2 Improvements;Park Improvements; Bunker Hill Golf Irrigation Improvements;
Downtown Loan Pool;Public Works Equipment Replacement;Public Works Curb Ramp Program;
Engineering Street Improvements; City Hall Improvements;Downtown ADA Assistance;Public Safety
Software Replacement;Parking Improvements; Airport New Terminal Improvements; Sanitary
Improvements; and Water Improvements. The interest rate on the bonds range from 3.00%to 3.63%, with a
maturity date of June 1, 2034.
On November 17, 2014 the City authorized $7,615,000 Taxable General Obligation Capital Loan Notes,
Series 2014C. The debt will fund a portion of the City match for the Intermodal Facility;Millwork District
Parking Improvements; Homeownership Program;Parking Ramp Improvements; Community Housing
Initiative Partnership; and Industrial Park Land Acquisition. The interest rate on the bonds range from 3.00%
to 4.13%,with a maturity date of June 1, 2034.
On December 15, 2014,Dubuque County,Iowa authorized $4,500,000 General Obligation Bonds for the
purpose of funding the construction of landfill facility improvements by the Dubuque Metropolitan Area
Solid Waste Agency(DMAS WA), of which the County is an organized member. The proceeds of the bonds
will be transferred to the DMAS WA in March of 2015. The DMAS WA will set up a long term note payable
to the County to reimburse the County for all debt service payments related to the 2014 bond issue. The
interest rate on the bonds range from 2.00%to 4.00%,with a maturity date of June 1, 2034.
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30,2014
NOTE 15—PROSPECTIVE ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB)has issued three statements not yet implemented by
the City. The statements which might impact the City, are as follows:
Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement
No. 27, issued June 2012, will be effective for the fiscal year ending June 30, 2015. The objective of this
Statement is to improve information provided by state and local governmental employers about financial
support for pensions that is provided by other entities.
Statement No. 69, Government combinations and Disposals of Government Operations, issued January 2013,
will be effective for the fiscal year ending June 30, 2015. The objective of this statement is to improve
financial reporting by addressing accounting and financial reporting for government combinations and
disposals of government operations. The term government combinations is used in the Statement to refer to a
variety of arrangements including mergers and acquisitions.
Statement No. 71, Pension Transition for Contributions made Subsequent to the Measurement Date, issued
November 2013, will be effective for the fiscal year ending June 30, 2015. The objective of the Statement is
to address any issue regarding application of the transition provisions of Statement No. 68, Accounting and
Financial Reporting for Pensions.
The City anticipates the implementation of GASB 68 will have an effect on the financial statements, but is
not able to ascertain the financial magnitude.
94
Required Supplementary Information
June 30, 2014
City of Dubuque, Iowa
95
THIS PAGE IS INTENTIONALLY LEFT BLANK
96
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 30,2014
Budgeted Amounts Final to Actual
Actual Original Final Variance
RECEIPTS
Property tax $ 23,197,623 $ 23,197,623 $ 23,197,623 $
Tax increment financing 9,140,253 9,752,170 9,752,170 (611,917)
Other City tax 11,520,635 15,560,397 14,610,397 (3,089,762)
Licenses and permits 4,355,829 1,368,930 1,368,930 2,986,899
Use of money and property 12,432,663 14,021,131 12,774,892 (342,229)
Intergovernmental 28,413,715 32,651,928 57,531,061 (29,117,346)
Charges for fees and service 32,523,827 35,954,213 36,056,828 (3,533,001)
Special assessments 215,949 55,038 960,008 (744,059)
Miscellaneous 13,154,910 7,874,906 10,578,228 2,576,682
Total Receipts 134,955,404 140,436,336 166,830,137 (31,874,733)
EXPENDITURES
Public safety 26,779,344 27,115,833 27,927,987 1,148,643
Public works 12,103,932 12,223,715 12,993,866 889,934
Health and social services 1,070,846 998,450 1,197,276 126,430
Culture and recreation 11,252,882 10,916,031 11,494,498 241,616
Community and economic development 12,716,967 13,343,613 13,553,575 836,608
General government 7,513,382 7,472,570 7,728,018 214,636
Debt service 7,836,113 7,613,632 7,613,632 (222,481)
Capital projects 26,026,001 25,588,595 73,361,758 47,335,757
Business-type activities 58,089,787 43,723,844 103,928,190 45,838,403
Total Expenditures 163,389,254 148,996,283 259,798,800 96,409,546
EXCESS(DEFICIENCY)OF RECEIPTS
OVER(UNDER)EXPENDITURES (28,433,850) (8,559,947) (92,968,663) 64,534,813
OTHER FINANCING SOURCES,NET 19,332,994 6,202,951 38,092,399 (18,759,405)
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER)EXPENDITURES AND
OTHER FINANCING USES (9,100,856) (2,356,996) (54,876,264) 45,775,408
BALANCE,BEGINNING OF YEAR 69,440,194 25,076,317 76,411,104 -
BALANCE,ENDING OF YEAR $ 60,339,338 $ 22,719,321 $ 21,534,840 $ 45,775,408
See Notes to Required Supplementary Information.
97
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION—BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30,2014
The budgetary comparison is presented as Required Supplementary Information in accordance with
Governmental Accounting Standards Board Statement No. 41 for governments with significant budgetary
perspective differences resulting from not being able to present budgetary comparisons for the General
Fund and each major Special Revenue Fund.
The Code of Iowa requires the adoption of an annual budget by the City Council on or before March 15
of each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control(the level on which expenditures may not legally exceed
appropriations) is the function level for the City as a whole, rather than at the fund or fund type level.
The internal service fund or agency fund activity is not included in the adopted budget.
The City's budget is prepared on the cash basis of accounting with an adjustment for accrued payroll
following required public notice and hearings. After the initial annual budget is adopted, it may be
amended for specified purposes. Budget amendments must be prepared and adopted in the same manner
as the original budget. Management is not authorized to amend the budget or to make budgetary transfers
between functions without the approval of the City Council. Management may make budgeting transfers
between funds as long as the transfers are within the same function. The City has adopted a policy
relative to budgetary control and amendment which provides for control at the line-item level and review
of the current year's budget at the time the next year's budget is prepared. This usually results in
amending the appropriations of all functions to adjust to current conditions. Supplemental appropriations
are only provided when unanticipated revenues or budget surpluses become available. Appropriations as
adopted lapse at the end of the fiscal year.
The budget for the fiscal year ended June 30, 2014 was amended two times during the year to allow the
City to increase function expenditures by $110,802,517 primarily for the carry-forward of unfinished
capital improvement projects and expenditure of additional grants for capital improvements. During the
year ended June 30, 2014, disbursements in the debt service function exceeded the amount budgeted.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Governmental Enterprise
Modified Funds Funds
Budgetary Accrual Accroal/Accrual Modified Accrual
Basis Adjustments Basis Accrual Basis Basis Total
Receipts/Revenue $ 134,955,404 $ (11,168,389) $ 123,787,015 $ 92,114,175 $ 31,672,840 $ 123,787,015
Expeaditures/Expenses 163,389,254 (25,911,411) 137,477,843 102,333,079 35,144,764 137,477,843
Deficiency of Receipts/Aevenue
Under Expeaditures/Expeases (28,433,850) 14,743,022 (13,690,828) (10,218,904) (3,471,924) (13,690,828)
Other Financing Sources 19,332,994 (16,871,406) 2,461,588 (705,802) 3,167,390 2,461,588
Net (9,100,856) (2,128,384) (11,229,240) (10,924,706) (304,534) (11,229,240)
Balance,Beginning 69,440,194 143,973,674 213,413,868 69,544,627 143,869,241 213,413,868
Balance,Ending $ 60,339,338 $ 141,845,290 $ 202,184,628 $ 58,619,921 $ 143,564,707 $ 202,184,628
98
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN(OPEB)
FOR THE YEAR ENDED JUNE 30,2014
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Year Actuarial Value of Liability AAL Funded Covered of Covered
Ended Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
June 30 Date (a) (b) db-a) (a/b) (c) (b-a/c)
2012 07/01/10 - 5,481,802 5,481,802 0.00% 31,183,497 17.60 %
2013 07/01/12 - 5,720,577 5,720,577 0.00% 31,830,608 18.00 %
2014 07/01/12 - 5,720,577 5,720,577 0.00% 32,626,573 17.53 %
99
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.
Tort Liability Fund — This fund is used to collect a special property tax levy which is then
transferred to the General Fund. The General Fund accounts for the administration and payment of
damage claims against the City.
Special Assessments Fund —This fund is used to account for the financing of public improvements
that are deemed to benefit primarily the properties against which special assessments are levied and
to accumulate monies for the payment of principal and interest on the outstanding long-term debt
service.
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.
Community Development Fund — This fund is used to account for the use of Community
Development Block Grant funds as received from federal and state governmental agencies.
DEBT SERVICE FUND
The debt service fund is used to account for the accumulation of resources and payment of general
obligation bond principal and interest from governmental resources and special assessment bond
principal and interest from special assessment levies when the government is obligated in some
manner for the payment.
100
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds and trust funds.
Airport Construction Fund — This fund is used to account for the resources and costs related to
airport capital improvements.
Sales Tax Construction Fund — This fund is used to account for the resources and costs related to
capital improvements financed through the local option sales tax.
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.
101
CITY OF DUBUQUE,IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2014
Special Revenue Funds
Road
Use Section VIII Employee Tort
Tax Housing Benefits Liability
ASSETS
Cash and pooled cash investments $ 1,023,554 $ 6,754 -
Receivables
Property tax
Delinquent - - 56,703 3,972
Succeeding year - - 5,022,436 373,410
Accounts and other 1,884 36,192 - -
Special assessments - - - -
Accrued interest - 1,651 - -
Notes - -
Intergovernmental 444,690 4,052 - -
Prepaid items 26,979 - - -
Restricted cash and pooled cash investments - 541,190 - -
Total Assets $ 1,497,107 $ 589,839 $ 5,079,139 $ 377,382
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 62,281 $ 90,691 $ 47 $ -
Accrued payroll 39,682 2,391 -
Intergovernmental payable - 40,608 - -
Unearned revenue - 14,003 - -
Total Liabilities 101,963 147,693 47 -
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - 5,022,436 373,410
Special assessments - - - -
Grants - - - -
Other - - 5,076 349
Total Deferred Inflows of Resources - - 5,027,512 373,759
FUND BALANCES
Nonspendable:
Endowment corpus - - - -
Long-term notes receivable - - - -
Prepaid items 26,979 - - -
Restricted:
Endowments - - - -
Library - - - -
Debt service - - -Capital improvements 1,368,165 - - -
franchise agreement - - - -
Special assessments - - - -
Claims - - - 3,623
Iowa Finance Authority Trust - - - -
Community programs - 442,146 - -
Employee benefits - - 51,580 -
Committed,capital improvements - - - -
Total Fund Balances 1,395,144 442,146 51,580 3,623
Total Liabilities,Deferred Inflows of Resources and
Fund Balances $ 1,497,107 $ 589,839 $ 5,079,139 $ 377,382
102
EXHIBIT A-I
Special Revenue Funds Capital Projects Funds
Library IFA
Special Expendable Housing Community Airport Sales Tax
Assessments Cable TV Gifts Trust Trust Development Debt Service Construction Construction
$ 80 $ 144,028 $ 1,233,133 $ 13,664 $ 2,027,915 $ 27,123 $ 1,234,774 $ 3,453,031
- - - - - 1,342 - -
- - - - - 117,280 - -
- 156,159 - - - - - -
955,503 - - - - - - -
- 540 4,661 - 31,537 102 2,000 9,431
- - - - 7,857,878 - - 657,518
- - - - 175,797 - 1,075,370 263,566
- 8,420 - - 20,573 - - -
$ 955,583 $ 309,147 $ 1,237,794 $ 13,664 $ 10,113,700 $ 145,847 $ 2,312,144 $ 4,383,546
$ - $ 454 $ 4,415 $ - $ 23,682 $ - $ 1,194,067 $ 3,780
- 2,232 - - 6,931 - - -
- 2,686 4,415 - 30,613 - 1,194,067 3,780
- - - - - 117,280 - -
917,342 - - - - - - -
- - - - 115,331 - 760,064 -
79 _
917,342 - - - 115,331 117,359 760,064 -
- - - - 7,857,878 - - 657,518
- 8,420 - - 20,573 - - -
- - 1,233,379 - - - - -
- - - - - 28,488 - -
- - - - - - 358,013 -
- 298,041 - - - - - -
38,241 - - - - - - -
- - - 13,664 - - - -
- - - - 2,089,305 - - -
- - - - - - - 3,722,248
38,241 306,461 1,233,379 13,664 9,967,756 28,488 358,013 4,379,766
$ 955,583 $ 309,147 $ 1,237,794 $ 13,664 $ 10,113,700 $ 145,847 $ 2,312,144 $ 4,383,546
(Continued)
103
EXHIBIT A-1
CITY OF DUBUQUE,IOWA (Continued)
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30,2014
Capital Permanent Funds
Projects Funds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Trust Funds
ASSETS
Cash and pooled cash investments $ 6,532,689 $ - $ - $ 15,696,745
Receivables
Property tax
Delinquent - - - 62,017
Succeeding year - - - 5,513,126
Accounts and other 75 - - 194,310
Special assessments - - - 955,503
Accrued interest 19,091 171 47 69,231
Notes - - - 8,515,396
Intergovernmental 867,917 - - 2,831,392
Prepaid items - - - 55,972
Restricted cash and pooled cash investments - 139,021 12,356 692,567
Total Assets $ 7,419,772 $ 139,192 $ 12,403 $ 34,586,259
LIABILITIES,DEFERRED INFLOWS OF
RESOURCES AND FUND BALANCES
LIABILITIES
Accounts payable $ 246,374 $ - $ - $ 1,625,791
Accrued payroll - - - 51,236
Intergovernmental payable - - - 40,608
Unearned revenue - - - 14,003
Total Liabilities 246,374 - - 1,731,638
DEFERRED INFLOWS OF RESOURCES
Unavailable revenues
Succeeding year property tax - - - 5,513,126
Special assessments - - - 917,342
Grants 278,159 - - 1,153,554
Other 68,895 - - 74,399
Total Deferred Inflows of Resources 347,054 - - 7,658,421
FUND BALANCES
Nonspendable:
Endowment corpus - 57,412 12,000 69,412
Long-term notes receivable - - - 8,515,396
Prepaid items - - - 55,972
Restricted:
Endowments - 81,780 403 82,183
Library - - - 1,233,379
Debt service - - - 28,488
Capital improvements - - - 1,726,178
Franchise agreement - - - 298,041
Special assessments - - - 38,241
Claims - - - 3,623
Iowa Finance Authority Trust - - - 13,664
Community programs - - - 2,531,451
Employee benefits - - - 51,580
Committed,capital improvements 6,826,344 - - 10,548,592
Total Fund Balances 6,826,344 139,192 12,403 25,196,200
Total Liabilities,Deferred Inflows of Resources and
Fund Balances $ 7,419,772 $ 139,192 $ 12,403 $ 34,586,259
104
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105
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2014
Special Revenue Funds
Road
Use Section VIII Employee Tort
Tax Housing Benefits Liability
REVENUES
Taxes $ - $ - $ 5,070,689 $ 354,684
Special assessments - - - -
Intergovernmental 5,660,799 4,196,133 - -
Chargesforservices 11,454 - -Investment earnings 116 2,045 - -
Contributions - - - -
Miscellaneous 123,129 79,912 - -
Total Revenues 5,795,498 4,278,090 5,070,689 354,684
EXPENDITURES
Governmental activities
Current
Public works 6,190,010 - - -
Health and social services - - - -
Culture and recreation - - - -
Community and economic development - 4,471,146 - -
General government 7,463 - 156 -
Debt service
Principal - - - -
Interest and fiscal charges - - -Capital projects 5,446 - -
Total Expenditures 6,202,919 4,471,146 156 -
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES (407,421) (193,056) 5,070,533 354,684
OTHER FINANCING SOURCES (USES)
Transfers in 261,485 262,497 - -
Transfers out (67,562) (820) (5,050,937) (353,043)
Insurance recovery - - - -
Sale of capital assets - - - -
Total Other Financing Sources(Uses) 193,923 261,677 (5,050,937) (353,043)
NET CHANGE IN FUND BALANCES (213,498) 68,621 19,596 1,641
FUND BALANCES,BEGINNING 1,608,642 373,525 31,984 1,982
FUND BALANCES,ENDING $ 1,395,144 $ 442,146 $ 51,580 $ 3,623
106
EXHIBIT A-2
Special Revenue Funds Capital Projects Funds
Library IFA
Special Expendable Housing Community Airport Sales Tax
Assessments Cable TV Gifts Trust Trust Development Debt Service Construction Construction
$ - $ - $ - $ - $ - $ 119,497 $ - $ 1,642,272
121,052 - - - - - - -
- - - - 2,128,038 49,195 7,285,720 -
- 7,737 1,239 - 6,150 - 211,952 -
74,083 1,397 10,720 - 71,783 487 12,217 27,251
- - - - - - 10,108 20
10,961 592,609 109,598 - 97,320 - 800 6,145
206,096 601,743 121,557 - 2,303,291 169,179 7,520,797 1,675,688
- - - - 32,504 - - -
- 29,903 - - 19,780 - - -
- - 107,800 - 128,547 - - -
- - - 76,238 2,871,150 - - -
- 534,952 - - 8 - - -
- - - - - 4,547,808 - -
- - - - - 3,511,206 - -
- - - - - - 9,733,032 1,508,516
- 564,855 107,800 76,238 3,051,989 8,059,014 9,733,032 1,508,516
206,096 36,888 13,757 (76,238) (748,698) (7,889,835) (2,212,235) 167,172
- - - 119,846 - 7,901,723 55,000 240,986
(183,122) (573) - (100,347) - (108,976) (152,417) (1,162,235)
- - - - 106,042 - - -
(183,122) (573) - 19,499 106,042 7,792,747 (97,417) (921,249)
22,974 36,315 13,757 (56,739) (642,656) (97,088) (2,309,652) (754,077)
15,267 270,146 1,219,622 70,403 10,610,412 125,576 2,667,665 5,133,843
$ 38,241 $ 306,461 $ 1,233,379 $ 13,664 $ 9,967,756 $ 28,488 $ 358,013 $ 4,379,766
(Continued)
107
EXHIBIT A-2
(Continued)
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENDITURES,AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30,2014
Capital Permanent Funds
Projects Funds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Trust Funds
REVENUES
Taxes $ 2,463,411 $ - $ - $ 9,650,553
Special assessments - - - 121,052
Intergovernmental 1,109,401 - - 20,429,286
Charges for services 18,453 - - 256,985
Investment earrings 46,446 8,638 108 255,291
Contributions - - - 10,128
Miscellaneous 3,674 - - 1,024,148
Total Revenues 3,641,385 8,638 108 31,747,443
EXPENDITURES
Governmental activities
Current
Public works - - - 6,222,514
Health and social services - - - 49,683
Culture and recreation - 338 - 236,685
Community and economic development - - - 7,418,534
General government - - - 542,579
Debt service
Principal - - - 4,547,808
Interest and fiscal charges - - - 3,511,206
Capital projects 2,639,752 - - 13,886,746
Total Expenditures 2,639,752 338 - 36,415,755
EXCESS(DEFICIENCY)OF REVENUES
OVER(UNDER)EXPENDITURES 1,001,633 8,300 108 (4,668,312)
OTHER FINANCING SOURCES (USES)
Transfers in 264,498 - - 9,106,035
Transfers out (179,994) - - (7,360,026)
Insurance recovery 46,878 - - 46,878
Sale of capital assets - - - 106,042
Total Other Financing Sources(Uses) 131,382 - - 1,898,929
NET CHANGE IN FUND BALANCES 1,133,015 8,300 108 (2,769,383)
FUND BALANCES,BEGINNING 5,693,329 130,892 12,295 27,965,583
FUND BALANCES,ENDING $ 6,826,344 $ 139,192 $ 12,403 $ 25,196,200
108
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises --where the intent of the City Council is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges; or where the City Council has decided that periodic determination of net income is appropriate
for accountability purposes.
Refuse Collection Fund — This fund is used to account for the operations of the City's refuse
collection services.
Transit System Fund —This fund is used to account for the operations of the City's bus and other
transit services.
Salt Fund—This fund is used to account for the operations of the City's salt distribution.
America's River Project—This fund is used to account for all projects covered by the Vision Iowa
Grant, including all matching funds.
109
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF NET POSITION EXHIBIT at
NONMAJOR ENTERPRISE FUNDS
JUNE 30,2014
Total Other
Refuse Transit America's Enterprise
Collection System Salt River Project Funds
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 584,530 $ - $ - $ - $ 584,530
Receivables
Accounts 309,965 2,185 - 312,150
Accrued interest 2,210 - - - 2,210
Intergovernmental - 1,004,830 - 1,004,830
Total Current Assets 896,705 1,007,015 - 1,903,720
NONCURRENT ASSETS
Restricted cash and pooled cash
investments - 3,670,700 - 3,670,700
Capital assets
Land - 36,000 - 36,000
Buildings - 1,887,564 175,458 - 2,063,022
Improvements to other than buildings - 244,232 686,312 - 930,544
Machinery and equipment 2,159,038 5,071,514 36,342 - 7,266,894
Construction in progress - 2,497,910 - - 2,497,910
Accumulated depreciation (910,395) (3,258,423) (11,745) - (4,180,563)
Net Capital Assets 1,248,643 6,478,797 886,367 - 8,613,807
Total Noncurrent Assets 1,248,643 10,149,497 886,367 - 12,284,507
Total Assets 2,145,348 11,156,512 886,367 - 14,188,227
LIABILITIES
CURRENT LIABILITIES
Accounts payable 8,649 535,346 30,768 1,605 576,368
Accrued payroll 28,220 38,725 - - 66,945
General obligation bonds payable 4,506 - - - 4,506
Accrued compensated absences 2,541 55 - - 2,596
Accrued interest payable 259 - - - 259
Due to other funds - 38,181 34,816 - 72,997
Total Current Liabilities 44,175 612,307 65,584 1,605 723,671
NONCURRENT LIABILITIES
General obligation bonds payable(net of
premium of$460) 90,106 - - - 90,106
Accrued Compensated Absences 295,956 3,867 - - 299,823
Net OPEB Liability 149,875 44,588 - - 194,463
Total Noncurrent Liabilities 535,937 48,455 - - 584,392
Total Liabilities 580,112 660,762 65,584 1,605 1,308,063
NET POSITION
Net investment in capital assets 1,154,031 6,478,797 886,367 - 8,519,195
Restricted by bond
ordinance/development agreement - 3,670,700 - - 3,670,700
Unrestricted 411,205 346,253 (65,584) (1,605) 690,269
Total Net Position $ 1,565,236 $ 10,495,750 $ 820,783 $ (1,605) $ 12,880,164
110
CITY OF DUBUQUE,IOWA EXHIBIT a2
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30,2014
Total Other
Refuse Transit America's Enterprise
Collection System Salt River Project Funds
OPERATING REVENUES
Charges for sales and services $ 3,700,922 $ 198,883 $ 45,291 $ - $ 3,945,096
Other - 77,024 309 - 77,333
Total Operating Revenues 3,700,922 275,907 45,600 - 4,022,429
OPERATING EXPENSES
Employee expense 2,488,318 1,861,199 711 - 4,350,228
Utilities 18,340 55,678 764 - 74,782
Repairs and maintenance 262,938 325,949 12,463 - 601,350
Supplies and services 686,000 1,041,275 37,768 33,579 1,798,622
Insurance 21,610 57,318 - - 78,928
Depreciation 275,448 505,901 4,762 - 786,111
Total Operating Expenses 3,752,654 3,847,320 56,468 33,579 7,690,021
OPERATING INCOME(LOSS) (51,732) (3,571,413) (10,868) (33,579) (3,667,592)
NONOPERATING REVENUES
Intergovernmental - 2,582,125 - 2,582,125
Investment earnings 6,377 13,882 - 20,259
Contributions - 34,086 - 34,086
Interest expense (3,158) - - - (3,158)
Gain(loss)on disposal of assets - - 175 - 175
Net Nonoperating Revenues 3,219 2,630,093 175 - 2,633,487
INCOME(LOSS)BEFORE TRANSFERS (48,513) (941,320) (10,693) (33,579) (1,034,105)
TRANSFERS IN - 1,004,006 670,577 701 1,675,284
TRANSFERS OUT (30,621) - - - (30,621)
CHANGE IN NET POSITION (79,134) 62,686 659,884 (32,878) 610,558
NET POSITION,BEGINNING 1,644,370 10,433,064 160,899 31,273 12,269,606
NET POSITION,ENDING $ 1,565,236 $ 10,495,750 $ 820,783 $ (1,605) $ 12,880,164
111
CITY OF DUBUQUE,IOWA EXHIBIT B-3
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30,2014
America's Total Other
Refuse Transit River Enterprise
Collection System Salt Project Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,698,359 $ 198,901 $ 153,934 $ - $ 4,051,194
Cash payments to suppliers for goods and services (1,214,729) (1,288,635) (146,283) (32,226) (2,681,873)
Cash payments to employees for services (2,503,589) (1,846,126) (711) - (4,350,426)
Other operating receipts - 77,024 309 - 77,333
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES (19,959) (2,858,836) 7,249 32,226 (2,903,772)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 1,004,006 670,577 701 1,675,284
Transfers to other funds (30,621) - - - (30,621)
Proceeds from interfund balances - 38,181 - - 38,181
Payment ofinterfund balances - - 8,311 - 8,311
Intergovernmental grant proceeds 1,670 2,496,270 - - 2,497,940
NET CASH PROVIDED BY(USED FOR)NONCAPITAL
FINANCING ACTIVITIES (28,951) 3,538,457 678,888 701 4,189,095
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets - 20,300 175 - 20,475
Acquisition and construction of capital assets - (1,584,225) (686,312) - (2,270,537)
Contributions - 34,086 - - 34,086
Principal Paid (4,413) - - - (4,413)
Interest paid (3,198) - - - (3,198)
NET CASH PROVIDED BY(USED FOR)CAPITAL AND
RELATED FINANCING ACTIVITIES (7,611) (1,529,839) 686,137 - (2,223,587)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 5,456 13,882 - 64 19,402
NET INCREASE(DECREASE)IN CASH AND POOLED
INVESTMENTS (51,065) (836,336) - (31,461) (918,862)
CASH AND POOLED INVESTMENTS,BEGINNING 635,594 4,507,036 - 31,461 5,174,091
CASH AND POOLED INVESTMENTS,ENDING $ 584,529 $ 3,670,700 $ - $ - $ 4,255,229
(Continued)
112
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS EXHIBIT B-3
NONMAJOR ENTERPRISE FUNDS (continued)
YEAR ENDED JUNE 30,2014
Business-type Activities-Enterprise Funds
America's Total Other
Refuse Transit River Enterprise
Collection System Salt Project Funds
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)
OPERATING ACTIVITIES
Operating income(loss) $ (51,732) $ (3,571,413) $ (10,868) $ 33,579 $ (3,667,592)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation 275,448 505,901 4,762 - 786,111
Change in assets and liabilities
(Increase)Decrease in receivables (2,563) 18 108,643 - 106,098
Increase(Decrease)in accounts payable (225,841) 191,585 (95,288) 1,353 (128,191)
Increase(Decrease)in accrued liabilities (29,760) 10,726 - - (19,034)
Increase in net OPEB liability 14,490 4,347 - - 18,837
Total Adjustments 31,774 712,577 18,117 1,353 763,821
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ (19,958) $ (2,858,836) $ 7,249 $ 32,226 $ (2,903,771)
113
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units, on a
cost-reimbursement basis.
General Service Fund - This fund is used to account for engineering, street, and general services
supplied to other departments.
Garage Service Fund - This fund is used to account for maintenance and repair services for the
City's automotive equipment.
Stores/Printing Fund - This fund is used to account for printing, supplies, and other services
provided to other departments.
Health Insurance Reserve Fund - This fund is used to account for health insurance costs.
Workers' Compensation Reserve Fund - This fund is used to account for workers' compensation
costs.
114
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115
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30,2014
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ $ $
Receivables
Accounts - - -
Accrued interest
Inventories 86,924 11,293
Prepaid items - - -
Total Current Assets 86,924 11,293
NONCURRENT ASSETS
Capital assets
Machinery and equipment - 106,521 -
Accumulated depreciation - (55,822) -
Net Capital Assets 50,699 -
Total Noncurrent Assets - 50,699 -
Total Assets 137,623 11,293
LIABILITIES
CURRENT LIABILITIES
Accounts payable 120 25,878 -
Accrued payroll 20,267 17,072 -
Due to other funds 18,221 135,385 8,512
Total Current Liabilities 38,608 178,335 8,512
Total Liabilities 38,608 178,335 8,512
NET POSITION
Net investment in capital assets - 50,700 -
Unrestricted (38,608) (91,412) 2,781
Total Net Position(Deficit) $ (38,608) $ 40,7121 $ 2,781
116
EXHIBIT C-1
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 1,843,380 $ 642,909 $ 2,486,289
99,165 - 99,165
6,968 2,430 9,398
- - 98,217
50,983 - 50,983
2,000,496 645,339 2,744,052
- - 106,521
- - (55,822)
- - 50,699
- - 50,699
2,000,496 645,339 2,794,751
749,763 1,082,310 1,858,071
- - 37,339
- - 162,118
749,763 1,082,310 2,057,528
749,763 1,082,310 2,057,528
- - 50,700
11250,733 (436,971) 686,523
$ 1,250,733 $ (436,971) $ 737,223
117
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF REVENUES,EXPENSES,AND CHANGES IN NET POSITION(DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30,2014
General Garage Stores/
Service Service Printing
OPERATING REVENUES
Charges for sales and services $ 2,309,531 $ 2,464,607 $ 18,839
Other - 37,433 -
Total Operating Revenues 2,309,531 2,502,040 18,839
OPERATING EXPENSES
Employee expense 2,305,191 970,521 -
Utilities - 28,441
Repairs and maintenance - 35,900 -
Supplies and services 4,874 1,540,048 19,160
Insurance 11,679 23,889 -
Depreciation - 10,738 -
Total Operating Expenses 2,321,744 2,609,537 19,160
OPERATING INCOME(LOSS) (12,213) (107,497) (321)
NONOPERATING REVENUES(EXPENSES)
Investment earnings - - -
Gain(loss)on disposal of assets - 6,632 -
-INCOME(LOSS)BEFORE TRANSFERS (12,213) (100,865) (321)
TRANSFERS OUT (4,134) -
CHANGE IN NET POSITION (12,213) (104,999) (321)
NET POSITION(DEFICIT),BEGINNING (26,395) 64,287 3,102
NET POSITION(DEFICIT),ENDING $ (38,608) $ (40,712) $ 2,781
118
EXHIBIT C-2
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 9,353,467 $ 1,047,505 $ 15,193,949
117,445 317 155,195
9,470,912 1,047,822 15,349,144
- - 3,275,712
28,441
- - 35,900
8,815,343 529,619 10,909,044
38,222 91,123 164,913
- - 10,738
8,853,565 620,742 14,424,748
617,347 427,080 924,396
13,527 7,622 21,149
- - 6,632
630,874 434,702 952,177
- - (4,134)
630,874 434,702 948,043
619,859 (871,673) (210,820)
$ 1,250,733 $ (436,971) $ 737,223
119
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30,2014
General Garage Stores/
Service Service Printing
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,309,531 $ 2,464,607 $ 18,839
Cash payments to suppliers for goods and services (16,827) (1,644,704) (21,222)
Cash payments to employees for services (2,302,621) (967,148) -
Other operating receipts - 37,433
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES (9,917) (109,812) (2,383)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers to other funds - (4,134) -
Proceeds from interfund balances 9,917 107,314 2,382
NET CASH PROVIDED BY(USED FOR)NONCAPITAL
FINANCING ACTIVITIES 9,917 103,180 2,382
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets - 6,632 -
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES - 6,632 -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received - - -
NET INCREASE(DECREASE)IN CASH AND
POOLED INVESTMENTS - - -
CASH AND POOLED INVESTMENTS,BEGINNING - - -
CASH AND POOLED INVESTMENTS,ENDING $ - $ - $ -
RECONCILIATION OF OPERATING INCOME(LOSS)
TO NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES
Operating income(loss) $ (12,213) $ (107,497) $ (321)
Adjustments to reconcile operating income(loss)to net
cash provided by(used for)operating activities
Depreciation - 10,738 -
Change in assets and liabilities
(Increase)Decrease in receivables - - -
(Increase)Decrease in inventories and prepaid items - 4,967 (2,062)
Increase(Decrease)in accounts payable (274) (21,393) -
Increase(Decrease)in accrued liabilities 2,570 3,373 -
Total Adjustments 2,296 (2,315) (2,062)
NET CASH PROVIDED BY(USED FOR)OPERATING
ACTIVITIES $ (9,917) $ (109,812) $ (2,383)
120
EXHIBIT C-3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 9,353,302 $ 1,047,505 $ 15,193,784
(8,706,214) (619,517) (11,008,483)
- - (3,269,768)
117,445 317 155,195
764,533 428,305 1,070,728
(4,134)
- - 119,613
- 115,479
- 6,632
- 6,632
8,729 5,617 14,345
773,262 433,922 1,207,184
1,070,118 208,987 1,279,105
$ 1,843,380 $ 208,987 $ 2,486,289
$ 617,347 $ 427,080 $ 924,396
- - 10,738
(165) - (165)
(50,983) - (48,078)
198,334 1,225 177,893
- - 5,944
147,186 1,225 146,332
$ 764,533 $ 428,305 $ 1,070,728
121
AGENCY FUNDS
The agency fund is used to report resources held by the City in a purely custodial capacity.
Cable Equipment Fund — This fund is used to account for resources received under the cable
franchise agreement to support public, educational, and governmental access and internet use grants.
Dog Track Depreciation Fund — This fund is used to account for the resources held for
improvements at the greyhound racing facility.
122
CITY OF DUBUQUE,IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES EXHIBIT D-1
AGENCY FUND
FOR THE YEAR ENDED JUNE 30,2014
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 371,923 $ 207,527 $ 69,374 $ 510,076
Accounts receivable 52,053 2,603 - 54,656
Total Assets $ 423,976 $ 210,130 $ 69,374 $ 564,732
LIABILITIES
Accounts payable $ 178 $ 4,640 $ 178 $ 4,640
Due to other agency 423,798 136,294 - 560,092
Total Liabilities $ 423,976 $ 140,934 $ 178 $ 564,732
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 468,472 $ 123,860 $ 40 $ 592,292
Accrued interest 950 2,239 950 2,239
Total Assets $ 469,422 $ 126,099 $ 990 $ 594,531
LIABILITIES
Due to other agency $ 469,422 $ 125,109 $ - $ 594,531
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments $ 840,395 $ 331,387 $ 69,414 $ 1,102,368
Accounts receivable 52,053 2,603 - 54,656
Accrued interest 950 2,239 950 2,239
Total Assets $ 893,398 $ 336,229 $ 70,364 $ 1,159,263
LIABILITIES
Accounts payable $ 178 $ 4,640 $ 178 $ 4,640
Due to other agency 893,220 261,403 - 1,154,623
Total Liabilities $ 893,398 $ 266,043 $ 178 $ 1,159,263
123
THIS PAGE IS INTENTIONALLY LEFT BLANK
124
Statistical Section (Unaudited)
June 30, 2014
City of Dubuque, Iowa
125
THIS PAGE IS INTENTIONALLY LEFT BLANK
126
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City's overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City's
financial performance and well-being have changed over time. 128
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 138
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. 142
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. 152
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. 154
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
127
CITY OF DUBUQUE,IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2005 2006 2007 2008 2009
Governmental activities
Net investment in capital assets $ 249,881,646 $ 267,762,059 $ 288,978,975 $ 296,143,451 $ 298,855,346
Restricted 24,180,874 21,693,357 23,900,328 31,970,724 27,171,123
Unrestricted 11,236,870 15,132,486 21,921,571 18,987,841 (5,280,715)
Total governmental activities net position $ 285,299,390 $ 304,587,902 $ 334,800,874 $ 347,102,016 $ 320,745,754
Business-type activities
Net investment in capital assets $ 93,036,089 $ 88,802,536 $ 91,483,532 $ 95,104,575 $ 120,473,286
Restricted 554,205 554,294 554,318 554,505 770,157
Unrestricted 12,854,730 13,258,072 11,214,900 11,312,806 12,321,125
Total business-type activities net position $ 106,445,024 $ 102,614,902 $ 103,252,750 $ 106,971,886 $ 133,564,568
Primary government
Net investment in capital assets $ 342,917,735 $ 356,564,595 $ 380,462,507 $ 391,248,026 $ 419,328,632
Restricted 24,735,079 22,247,651 24,454,646 32,525,229 27,941,280
Unrestricted 24,091,600 28,390,558 33,136,471 30,300,647 7,040,410
Total primarygovemment net positions $ 391,744,414 $ 407,202,804 $ 438,053,624 $ 454,073,902 $ 454,310,322
128
TABLE 1
Year
2010 2011 2012 2013 2014
$ 309,126,684 $ 329,416,245 $ 347,890,769 $ 342,046,442 $ 354,732,451
26,064,318 23,738,199 26,180,100 23,491,207 21,501,638
(11,256,312) (4,891,381) (16,876,988) (8,361,688) (18,151,279)
$ 323,934,690 $ 348,263,063 $ 357,193,881 $ 357,175,961 $ 358,082,810
$ 124,805,513 $ 135,026,753 $ 132,237,734 $ 138,498,777 $ 138,842,390
129,642 893,519 957,802 6,011,848 5,315,519
11,679,961 2,603,799 10,665,596 (641,384) (593,202)
$ 136,615,116 $ 138,524,071 $ 143,861,132 $ 143,869,241 $ 143,564,707
$ 433,932,197 $ 464,442,998 $ 480,128,503 $ 480,545,219 $ 493,574,841
26,193,960 24,631,718 27,137,902 29,503,055 26,817,157
423,649 (2,287,582) (6,211,392) (9,003,072) (18,744,481)
$ 460,549,806 $ 486,787,134 $ 501,055,013 $ 501,045,202 $ 501,647,517
129
CITY OF DUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2005 2006 2007 2008 2009
Expenses
Governmental activities:
Public safety $ 18,636,877 $ 18,892,980 $ 20,326,724 $ 16,966,210 $ 22,038,265
Public works 17,088,983 16,390,322 16,505,560 18,847,068 19,079,688
Health and social services 654,469 678,748 759,367 800,566 849,237
Culture and recreation 8,474,183 9,627,505 9,837,299 10,857,409 12,640,716
Community and economic development 9,680,046 8,541,167 11,965,805 11,961,584 12,693,140
General government 4,048,475 3,868,687 4,940,154 5,804,003 6,423,908
Interest on long-term debt 1,298,367 1,460,730 1,400,748 2,577,417 3,164,126
Total governmental activities expenses 59,881,400 59,460,139 65,735,657 67,814,257 76,889,080
Business-type activities:
Sewage disposal works 4,656,172 5,298,353 5,814,076 6,141,524 6,326,708
Water utility 4,232,489 4,700,483 4,780,063 4,814,692 6,100,491
Stormwater utility 1,114,811 1,153,628 1,198,675 1,706,735 2,138,198
Parking facilities 1,604,071 1,629,427 1,611,447 2,173,110 2,147,405
America's River Project 515,570 82,617 434,667 126,699 61,927
Refuse collection 2,202,800 2,463,795 2,496,018 2,724,050 2,788,665
Transit system 2,326,908 2,555,080 2,760,459 2,703,983 2,625,145
Salt
Total business-type activities expenses 16,652,821 17,883,383 19,095,405 20,390,793 22,188,539
Total primary government expenses $ 76,534,221 $ 77,343,522 $ 84,831,062 $ 88,205,050 $ 99,077,619
Program Revenues
Governmental activities:
Charges for services
Public safety 1,900,938 1,809,481 1,857,324 2,088,723 2,020,625
Public works 3,371,073 3,370,291 4,839,781 4,061,883 4,456,364
Culture and recreation 2,143,246 2,218,315 2,251,562 2,109,571 2,279,688
Other activities 945,712 895,920 1,074,550 1,382,889 1,557,597
Operating grants and contributions 14,603,106 12,902,410 11,641,904 11,709,123 12,599,967
Capital grants and contributions 6,919,296 6,881,573 23,741,282 8,032,602 4,811,729
Total governmental activities program revenues 29,883,371 28,077,990 45,406,403 29,384,791 27,725,970
Business-type activities:
Charges for services
Sewage disposal works 4,552,587 5,077,491 5,259,432 5,484,079 5,904,535
Water utility 4,224,074 4,669,340 4,743,896 4,875,530 5,320,642
Stortnwater utility 684,570 928,850 1,227,243 1,766,334 2,291,249
Parking facilities 1,889,937 1,886,642 1,977,757 2,141,607 2,224,185
America's River Project 26,061 51,373 3,099 2,140 -
Refuse collection 2,283,677 2,397,525 2,642,251 2,710,583 2,872,649
Transit system 389,106 341,743 237,088 195,817 196,260
Salt - - - - -
Operatinggrantsandcontributions 651,967 920,762 1,167,344 1,209,636 1,095,946
Capital grants and contributions 3,030,378 2,769,657 1,670,874 2,830,263 3,613,321
Total business-type activities program revenues 17,732,357 19,043,383 18,928,984 21,215,989 23,518,787
Total primary government program revenues $ 47,615,728 $ 47,121,373 $ 64,335,387 $ 50,600,780 $ 51,244,757
130
TABLE2
Year
2010 2011 2012 2013 2014
$ 22,067,988 $ 23,759,068 $ 26,326,367 $ 28,292,481 $ 27,578,517
22,121,629 18,978,423 22,917,747 21,607,536 21,306,882
852,099 1,072,347 913,954 716,970 1,055,398
11,446,084 10,911,733 12,749,558 13,647,178 13,696,331
15,422,099 12,890,841 22,030,950 17,388,720 14,591,257
7,963,016 9,052,704 6,133,983 6,248,483 9,610,084
3,101,897 3,294,951 3,294,912 4,049,640 3,684,993
82,974,812 79,960,067 94,367,471 91,951,008 91,523,462
6,631,326 7,899,011 9,718,669 9,375,748 11,481,103
6,093,827 6,523,993 7,410,710 6,817,772 8,812,340
2,213,144 2,811,321 2,750,767 3,347,304 3,431,096
4,003,776 4,775,834 3,152,055 3,586,405 3,732,492
423,158 180,086 22,787 22,770 33,579
2,703,887 2,828,891 3,173,075 3,468,859 3,750,366
2,832,066 2,947,958 3,629,750 3,492,095 3,847,320
671,647 661,395 346,066 56,468
24,901,184 28,638,741 30,519,208 30,457,019 35,144,764
$ 107,875,996 $ 108,598,808 $ 124,886,679 $ 122,408,027 $ 126,668,226
2,348,064 2,579,573 2,915,562 2,495,737 2,624,455
4,046,583 5,331,667 5,178,439 4,472,479 5,829,293
2,192,886 2,108,177 2,321,553 2,488,844 2,321,265
2,412,880 2,530,234 2,873,298 3,264,979 3,921,256
20,830,113 14,204,627 23,013,997 13,995,316 12,784,907
10,748,522 23,482,866 16,560,811 10,791,945 12,162,649
42,579,048 50,237,144 52,863,660 37,509,300 39,643,825
5,893,730 6,643,974 7,827,281 8,924,785 10,025,673
5,326,202 5,638,277 6,037,073 6,922,582 7,248,790
2,282,625 2,993,539 3,180,134 3,192,256 3,224,504
2,399,843 2,750,610 2,908,989 2,883,865 2,920,148
7,000 - - - -
2,893,017 3,082,197 3,257,960 3,346,795 3,700,922
273,433 193,236 278,835 307,314 275,907
- 773,258 665,942 395,000 45,600
1,652,277 2,773,933 1,579,493 2,264,695 1,717,208
3,800,582 6,536,527 5,323,486 1,240,583 2,920,942
24,528,709 31,385,551 31,059,193 29,477,875 32,079,694
$ 67,107,757 $ 81,622,695 $ 83,922,853 $ 66,987,175 $ 71,723,519
(Continued)
131
CITY OF DUBUQUE,IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2005 2006 2007 2008 2009
Net(Expense)/Revenue
Governmental activities $ (29,998,029) $ (31,382,149) $ (20,329,254) $ (38,429,466) $ (49,163,110)
Business-type activities 1,079,536 1,160,000 (166,421) 825,196 1,330,248
Total primary government net expense $ (28,918,493) $ (30,222,149) $ (20,495,675) $ (37,604,270) $ (47,832,862)
General Revenues and Other Changes in Net Position
Governmental activities:
General Revenues
Property taxes 19,767,492 19,716,620 21,656,908 22,744,563 23,716,819
Local option sales tax 6,963,124 7,336,124 7,817,403 8,020,889 7,649,853
Hotel/moteltax 1,383,660 1,862,439 1,569,743 1,622,455 1,611,954
Utility franchise fees 1,310,064 1,521,201 1,492,920 1,516,123 1,486,292
Gaming 11,694,105 14,034,847 15,556,551 15,346,468 9,627,391
Unrestricted investment earnings 1,190,337 1,081,141 1,870,403 2,741,499 2,215,413
Gain on sale of capital assets 170,642 77,627 - 92,525 407,503
Other 560,789 572,602 586,931 898,241 918,605
Transfers (1,684,581) 5,033,974 (7,633) (2,252,155) (24,826,982)
Total governmental activities 41,355,632 51,236,575 50,543,226 50,730,608 22,806,848
Business-type activities:
General Revenues
Unrestricted investment earnings 322,884 339,599 796,636 630,049 433,148
Gain on sale of capital assets 36 703 - 11,736 2,304
Extraordinary item - - - - -
Transfers 1,684,581 (5,033,974) 7,633 2,252,155 24,826,982
Total business-type activities 2,007,501 (4,693,672) 804,269 2,893,940 25,262,434
Total primary government $ 43,363,133 $ 46,542,903 $ 51,347,495 $ 53,624,548 $ 48,069,282
Change in Net Position
Governmental activities $ 11,357,603 $ 19,854,426 $ 30,213,972 $ 12,301,142 $ (26,356,262)
Business-type activities 3,087,037 (3,533,672) 637,848 3,719,136 26,592,682
Total primary government $ 14,444,640 $ 16,320,754 $ 30,851,820 $ 16,020,278 $ 236,420
132
TABLE2
(Continued)
Year
2010 2011 2012 2013 2014
$ (40,395,764) $ (29,722,923) $ (41,503,811) $ (54,441,708) $ (51,879,637)
(372,475) 2,746,810 539,985 (979,144) (3,065,070)
$ (40,768,239) $ (26,976,113) $ (40,963,826) $ (55,420,852) $ (54,944,707)
24,876,073 28,249,114 30,816,614 32,668,554 33,264,283
8,112,471 7,929,761 8,459,888 8,764,787 8,211,366
1,678,806 1,826,809 1,903,944 1,953,763 2,006,514
1,591,712 2,488,858 2,272,481 2,568,347 2,609,421
8,209,761 13,327,223 8,785,453 8,452,298 7,878,008
1,339,709 668,363 1,529,149 201,153 777,958
- 149,937 1,417,048 907,122 483,782
880,930 622,494 - - -
(3,104,762) (1,211,263) (4,749,948) (1,092,236) (2,444,846)
43,584,700 54,051,296 50,434,629 54,423,788 52,786,486
294,562 184,581 206,672 65,351 135,461
23,699 19,337 84,178 384,697 180,229
- (2,253,036) (243,722) (555,031) -
3,104,762 1,211,263 4,749,948 1,092,236 2,444,846
3,423,023 (837,855) 4,797,076 987,253 2,760,536
$ 47,007,723 $ 53,213,441 $ 55,231,705 $ 55,411,041 $ 55,547,022
$ 3,188,936 $ 24,328,373 $ 8,930,818 $ (17,920) $ 906,849
3,050,548 1,908,955 5,337,061 8,109 (304,534)
$ 6,239,484 $ 26,237,328 $ 14,267,879 $ (9,811) $ 602,315
133
CITY OF DUBUQUE,IOWA
FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2005 2006 2007 2008 2009
General Fund
Reserved $ 3,169,453 $ 1,477,141 $ 4,455,303 $ 1,699,825 $ 4,864,701
Unreserved 13,706,134 16,050,997 17,827,631 17,982,016 14,206,181
Nonspendable - - - - -
Assigned - - - - -
Unassigned - - - - -
Total general fund $ 16,875,587 $ 17,528,138 $ 22,282,934 $ 19,681,841 $ 19,070,882
All Other Governmental Funds
Reserved $ 13,607,759 $ 15,564,016 $ 13,942,519 $ 31,887,038 $ 19,634,305
Unreserved,reported in:
Special revenue fiords 5,777,233 7,277,471 7,586,898 7,431,931 5,981,390
Debt service fimd (56,320) - - - -
Capitalprojectsfimds 11,191,461 (981,248) 4,195,354 7,875,448 5,659,214
Permanent fimds 73,628 83,367 115,825 33,958 35,550
Nonspendable - - - - -
Restricted - - - - -
Committed - - - - -
Unassigned - - - - -
Total all other governmental fimds $ 30,593,761 $ 21,943,606 $ 25,840,596 $ 47,228,375 $ 31,310,459
*Classification changed in 2011 due to adoption of GASB 54.
134
TABLE3
Yeu
2010 2011* 2012 2013 2014
$ 5,199,760 -
8,622,705 - - - -
- 868,631 5,613,359 6,646,278 6,549,063
- 8,904,490 5,549,803 3,434,440 1,904,805
- 6,139,306 9,371,016 8,806,171 7,356,066
$ 13,822,465 $ 15,912,427 $ 20,534,178 $ 18,886,889 $ 15,809,934
$ 24,404,656
4,011,022 - - - -
(989,025) - - - -
33,273 - - - -
- 10,320,305 10,975,468 9,092,520 8,640,780
- 18,010,570 31,362,126 30,738,046 23,620,615
- 5,203,472 5,843,671 10,827,172 10,548,592
- (377,363) (429,344) - -
$ 27,459,926 $ 33,156,984 $ 47,751,921 $ 50,657,738 $ 42,809,987
135
CITY OF DUBUQUE,IOWA
CHANGES IN FUND BALANCES,GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal-
2005 2006 2007 2008 2009
Revenues
Taxes $ 29,430,135 $ 30,043,167 $ 32,526,525 $ 33,898,692 $ 34,454,146
Special assessments 197,195 322,214 586,459 177,585 250,372
Licenses and permits 1,078,722 965,712 1,052,896 1,153,429 1,088,386
Intergovernmental 18,370,358 15,021,722 16,744,703 14,256,523 15,796,822
Charges for services 5,918,542 6,620,243 7,351,191 7,833,151 8,029,189
Fines and forfeits 267,536 204,201 158,360 188,603 199,839
Investment earnings 1,197,691 1,096,445 1,913,420 2,731,953 2,206,382
Contributions 306,809 246,908 1,168,463 6,134,002 1,369,759
Gaming 11,694,105 14,034,847 15,556,551 15,346,468 9,627,391
Miscellaneous 1,573,305 1,106,991 1,149,546 1,269,376 1,600,679
Total revenues 70,034,398 69,662,450 78,208,114 82,989,782 74,622,965
Expenditures
Current
Public safety 18,652,246 19,535,369 20,743,196 21,542,661 21,335,192
Public works 21,301,239 11,605,567 12,506,378 16,331,107 14,261,551
Health and social services 662,231 715,598 783,209 797,644 815,873
Culture and recreation 8,180,832 9,998,462 10,244,244 10,277,787 12,227,506
Community and economic development 9,825,470 9,981,645 11,695,902 11,847,512 11,953,279
General government 4,022,785 4,090,866 4,441,043 6,310,939 5,836,839
Debt service
Principal 1,769,960 1,325,970 1,663,339 1,762,375 2,169,678
Interest 1,240,427 1,493,504 1,412,012 2,406,431 3,095,166
Capital projects 8,226,840 14,528,340 8,227,257 15,351,848 24,274,120
Total expenditures 73,882,030 73,275,321 71,716,580 86,628,304 95,969,204
Excess(deficiency)of revenues over
(under)expenditures (3,847,632) (3,612,871) 6,491,534 (3,638,522) (21,346,239)
Other Financing Sources(Uses)
Issuance of bonds - 13,682 743,591 23,083,696 5,905,000
Discount on bonds (58,487) - - (266,158) (48,516)
Premiums on bonds - - - - -
Issuanceofrefundingbonds 7,277,665 1,515,750 - 2,965,000 -
Payment to refunded bonds escrow agent - (1,494,371) - (2,875,000) -
Transfers in 12,981,655 7,334,605 10,394,726 14,801,589 7,451,152
Transfers out (16,105,184) (11,904,890) (11,789,548) (18,185,109) (9,084,228)
Insurance recovery - - - - -
Saleofcapitalassets 170,642 150,491 2,811,483 2,901,190 593,956
Total other financing sources(uses) 4,266,291 (4,384,733) 2,160,252 22,425,208 4,817,364
Net change in fund balances $ 418,659 $ (7,997,604) $ 8,651,786 $ 18,786,686 $ (16,528,875)
Debt service as a percentage of noncapital
expenditures 5.46 % 4.99 % 5.01 % 6.55 % 7.68 %
136
TABLE4
Year
2010 2011 2012 2013 2014
$ 36,252,156 $ 40,428,894 $ 43,443,669 $ 45,440,973 $ 46,034,361
318,178 232,535 596,138 175,486 154,692
1,115,472 1,170,922 1,570,022 1,271,771 1,136,941
27,310,624 26,171,082 37,574,783 26,580,831 23,050,052
8,063,284 8,723,086 9,296,329 8,952,179 10,264,257
224,601 454,117 525,389 484,128 455,219
1,348,615 654,587 1,511,437 180,016 756,809
2,333,995 1,297,621 1,578,376 370,154 678,561
8,209,761 13,327,223 8,785,453 8,452,298 7,878,008
2,111,834 2,075,262 1,319,558 1,315,915 1,705,275
87,288,520 94,535,329 106,201,154 93,223,751 92,114,175
21,979,729 23,950,386 24,476,772 26,506,714 27,644,190
19,251,625 14,429,415 12,385,929 13,416,108 13,942,772
813,609 1,040,114 828,837 680,466 1,049,194
14,909,517 11,279,951 10,873,474 11,218,019 12,351,497
14,654,816 12,361,176 22,237,140 18,678,496 14,420,980
6,368,308 7,686,929 6,335,947 5,035,108 5,898,293
2,651,765 2,820,371 3,224,680 3,182,240 4,595,808
3,145,735 3,321,157 3,220,546 3,991,115 3,650,694
14,831,118 15,102,893 23,459,891 16,636,698 18,779,651
98,606,222 91,992,392 107,043,216 99,344,964 102,333,079
(11,317,702) 2,542,937 (842,062) (6,121,213) (10,218,904)
4,722,176 6,996,722 27,215,363 6,577,268 -
(31,990) (39,547) (71,689) - -
554,796 1,642 123,990 - -
8,885,000 705,000 - 4,949,148 -
(9,405,000) (690,000) - (4,949,148) -
7,993,297 15,850,523 8,773,387 15,295,630 15,862,516
(10,562,137) (18,961,892) (18,336,603) (16,981,203) (17,294,762)
- 628,482 132,425 49,209 59,796
62,610 753,153 2,221,877 2,438,837 666,648
2,218,752 5,244,083 20,058,750 7,379,741 (705,802)
$ (9,098,950) $ 7,787,020 $ 19,216,688 $ 1,258,528 $ (10,924,706)
7.74 % 8.49 % 7.65 % 8.57 % 9.51 %
137
CITY OF DUBUQUE,IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY TABLE 5
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Total
Taxable
Value to
Real Property Exemptions Total Total
Levy Fiscal Taxable Assessed Real Taxable Assessed Assessed Total Direct
Year Year Value Value Property Value Value Value Tax Rate
2003 2005 $ 1,666,033 $ 2,575,400 $ 9,599 $ 1,656,434 $ 2,575,400 64.32 % $ 10.07200
2004 2006 1,710,334 2,679,078 9,862 1,700,472 2,679,078 63.47 9.69910
2005 2007 1,780,354 2,804,568 9,122 1,771,232 2,804,568 63.16 9.98030
2006 2008 1,823,304 2,870,178 8,939 1,814,365 2,870,178 63.21 10.31685
2007 2009 1,949,071 3,171,681 9,298 1,939,773 3,171,681 61.16 9.96904
2008 2010 2,033,135 3,239,112 9,246 2,023,889 3,239,112 62.48 9.85777
2009 2011 2,159,622 3,349,823 8,885 2,150,737 3,349,823 64.20 10.02742
2010 2012 2,243,474 3,406,186 8,875 2,234,599 3,406,186 65.60 10.45111
2011 2013 2,337,129 3,476,638 8,872 2,328,257 3,476,638 66.97 10.78478
2012 2014 2,398,151 3,503,774 8,799 2,389,352 3,503,774 68.19 11.02586
Source: Dubuque County Assessor's and Auditor's Offices
138
CITY OF DUBUQUE,IOWA
PROPERTY TAX RATES TABLE6
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER$1,000 ASSESSED VALUE
Dubuque Board of Ratio of
Levy Fiscal Dubuque School Education and Area 1 Dubuque Dubuque
year year City District Independents Voc.Tech County Total City to Total
2003 2005 $ 10.07200 $ 14.27491 $ 0.57269 $ 0.59804 $ 6.08923 $ 31.60687 31.87
2004 2006 9.69910 15.09695 0.60226 0.60517 6.08416 32.08764 30.23
2005 2007 9.98033 15.92538 0.60802 0.61127 6.17924 33.30424 29.97
2006 2008 10.31690 16.40925 0.63160 0.61270 6.42691 34.39736 29.99
2007 2009 9.96904 16.89000 0.95250 0.55713 6.41459 34.78326 28.66
2008 2010 9.85777 16.87918 0.57970 0.99471 6.40435 34.71571 28.40
2009 2011 10.02742 16.88349 0.55740 1.03532 6.50193 35.00556 28.65
2010 2012 10.45111 16.87685 0.67766 1.07379 6.49167 35.57108 29.38
2011 2013 10.78477 15.40388 0.71653 0.98407 6.43124 34.32049 31.42
2012 2014 11.02586 14.60281 0.75274 0.90455 6.43124 33.71720 32.70
Separate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
year year General Transit Insurance Benefits Service Total
2003 2005 $ 8.10000 $ 0.37993 $ 0.20994 $ 1.25424 $ 0.12789 $ 10.07200
2004 2006 8.10000 0.42561 0.22000 0.95349 - 9.69910
2005 2007 8.10000 0.53643 0.21308 1.13082 - 9.98033
2006 2008 8.10000 0.60729 0.21760 1.39201 - 10.31690
2007 2009 8.10000 0.66727 0.08685 1.11492 - 9.96904
2008 2010 8.10000 0.60000 0.21492 0.90583 0.03702 9.85777
2009 2011 8.10000 0.54469 0.20531 1.12441 0.05300 10.02741
2010 2012 8.10000 0.35273 0.19508 1.75052 0.05278 10.45111
2011 2013 8.10000 0.49516 0.13965 2.02267 0.02729 10.78477
2012 2014 8.10000 0.38382 0.16288 2.33093 0.04823 11.02586
Source: Dubuque County Auditor's Office.
139
CITY OF DUBUQUE,IOWA
PRINCIPAL PROPERTY TAXPAYERS TABLE 7
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
2014 2005
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Peninsula Gaming Company $ 61,326 1 2.56 % $ %
Kennedy Mall Inc. 35,312 2 1.47 23,834 1 1.43
Progressive Processing LLC(Hormel) 21,397 3 0.89
Medical Associates Realty LP 21,307 4 0.89 17,880 2 1.07
Nordstrom,Inc. 18,599 5 0.78 16,723 4 1.00
Walter Development LLC 16,639 6 0.69
The McGraw Hill Companies Inc. 15,907 7 0.66
Otto A LLC 14,100 8 0.59 17,500 3 1.05
Platinum Holdings LLC 11,817 9 0.49 10,162 6 0.61
Flexsteel Industries Inc. 11,409 10 0.48
Asbury Dubuque LLC 9,095 8 0.55
Minglewood Limited Partnership 9,043 9 0.54
U.S.West Communications 8,783 10 0.53
American Trust&Savings Bank 10,531 5 0.63
Lexington Dubuque LLC 9,815 7 0.59
$ 227,813 9.50 % $ 133,366 8.00 %
Source: Dubuque County Auditor's Office
140
CITY OF DUBUQUE,IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS TABLES
(IN THOUSANDS OF DOLLARS)
Percent of Total Tax Ratio of
Total Tax Current Current Delinquent Total Tax Collections Outstanding Delinquent
Fiscal Levy Levy Tax Taxes Tax Collections to Total Delinquent Taxes to Total
Year Year (1) Collections Collected Collections (2) Tax Levy Taxes Tax Levy
2005 2004 16,408 16,383 99.9 % 20 16,403 100.0 % 196 1.19 %
2006 2005 16,229 16,146 99.5 2 16,148 99.5 182 1.12
2007 2006 17,216 17,193 99.9 4 17,197 99.9 174 1.01
2008 2007 18,211 18,160 99.7 3 18,163 99.7 215 1.18
2009 2008 18,992 18,690 98.4 5 18,695 98.4 262 1.38
2010 2009 19,124 19,117 99.9 (10) 19,107 99.9 202 1.06
2011 2010 19,906 19,793 99.4 13 19,806 99.5 276 1.39
2012 2011 21,340 21,339 100.0 1 21,340 100.1 185 0.87
2013 2012 22,789 22,752 99.8 7 22,759 99.9 182 0.80
2014 2013 23,993 23,915 99.7 8 23,923 99.7 211 0.88
(1)Excludes tax increment levy.
(2)Includes taxes collected in June by the County but not received by the City until July.
141
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental Activities
Tax
General Tax Increment Increment
Fiscal Obligation Financing Financing Other Loans
Year Bonds Bonds Notes Payable
2005 $ 24,902,241 $ 3,450,820 $ 622,211 $ -
2006 24,036,627 3,040,304 590,439 -
2007 22,870,646 2,594,831 1,279,885 -
2008 21,752,907 24,879,116 1,279,885 -
2009 25,941,693 24,363,262 1,169,684 150,000
2010 27,887,864 24,449,674 1,049,696 282,857
2011 32,561,048 23,037,222 1,931,348 282,857
2012 53,087,811 22,258,283 1,767,664 4,735,714
2013 56,517,165 21,920,537 1,235,903 5,638,871
2014 52,568,648 21,556,435 1,030,036 5,541,428
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1)Population and personal income data can be found in Table 17.
* Personal Income unavailable at report date
142
TABLE 9
Business-Type Activities
General Capital Other Total Percentage of
Obligation Loan Revenue Loans Primary Personal Per
Bonds Notes Bonds Payable Government Income(1) Capita 1
$ 8,037,594 $ $ 1,150,000 $ - $ 38,162,866 2.01 % $ 663
11,428,712 940,000 - 40,036,082 2.01 694
10,895,593 720,000 - 38,360,955 1.81 665
11,384,371 611,977 490,000 - 60,398,256 2.66 2,174
14,448,770 3,914,076 1,434,713 390,890 71,813,088 3.22 1,245
23,957,802 8,289,621 1,115,430 371,978 87,404,922 3.88 1,515
25,254,652 33,195,408 6,777,793 2,252,109 125,292,437 5.12 2,174
35,108,003 61,957,749 6,521,188 331,235 185,767,647 7.14 3,223
34,921,131 75,415,431 6,260,299 309,304 202,218,641 7.77 3,508
32,738,862 82,924,949 14,151,437 286,263 210,798,058 * 3,657
143
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING TABLE 10
LAST TEN FISCAL YEARS
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
2005 $ 32,940 $ 1,656,434 1.99 % $ 2,575,400 1.28 % $ 571
2006 35,465 1,700,472 2.09 % 2,679,078 1.32 % 615
2007 33,766 1,771,232 1.91 % 2,804,658 1.20 % 585
2008 33,137 1,814,365 1.83 % 2,870,178 1.15 % 574
2009 40,390 1,939,773 2.08 % 3,171,681 1.27 % 700
2010 51,846 2,023,899 2.56 % 3,239,112 1.60 % 899
2011 57,816 2,159,622 2.68 % 3,349,823 1.73 % 1,003
2012 88,196 2,243,474 3.93 % 3,406,186 2.59 % 1,530
2013 91,438 2,337,129 3.91 % 3,476,638 2.63 % 1,586
2014 85,308 2,398,151 3.56 % 3,503,774 2.43 % 1,480
144
CITY OF DUBUQUE,IOWA
DIRECT AND OVERLAPPING DEBT TABLE 11
AS OF JUNE 30,2014
Net General
Obligation Tax Tax
Bonded Debt Increment Increment Sales Tax Percentage Amount
Outstanding Financing Financing Revenue Loans Applicable Applicable to
Jurisdiction (1) Bonds Notes Bonds Payable to City Government
Direct,City of Dubuque,Iowa $ 52,568,648 $ 21,556,435 $ 1,030,036 $ - $ 5,541,428 100.00 % $ 80,696,547
Overlapping:
Dubuque County - - - - 1,237,475 0.06 % 742
Dubuque Community School District - - - 33,033,000 - 100.00 % 33,033,000
Northeast Iowa Community College - - - - 57,595,000 0.06 % 34,557
Total Overlapping - - - 33,033,000 58,832,475 33,068,299
Total $ 52,568,648 $ 21,556,435 $ 1,030,036 $ 33,033,000 $ 64,373,903 $ 113,764,846
Source: Dubuque County Auditor,Dubuque Community School District and Northeast Iowa Community College
(1)Excludes debt reported in enterprise funds.
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 home 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 home 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.
145
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2005 2006 2007 2008
Debit limit $ 133,149 S 138,789 S 145,401 S 148,824
Total net debt
applicable to limit 37,177 39,443 38,060 60,485
Legal debit margin $ 95,972 S 99,346 S 107,341 S 88,339
Total net debt
applicable to the debt
limit as a percentage
of debt limit 27.92% 28.42 % 26.18 % 40.64%
146
TABLE 12
2009 2010 2011 2012 2013 2014
$ 163,621 $ 167,247 $ 174,333 $ 177,668 $ 181,668 $ 183,621
76,182 101,152 92,443 142,316 143,303 149,923
$ 87,439 $ 66,095 $ 81,890 $ 35,352 $ 38,365 $ 33,698
46.56 % 60.48 % 53.03 % 80.10 % 78.88 % 81.65 %
Legal Debt Margin Calculation for Fiscal Year 2014
Estimated actual value $ 3,672,428,057
Debt limit- 5%of total actual valuation $ 183,621,403
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund) $ 149,922,546
Legal debt margin $ 33,698,857
147
CITY OF DUBUQUE,IOWA
REVENUE DEBT COVERAGE TABLE 13
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
WATER UTILITY
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage(3)
2008 $ 4,933 $ 3,959 $ 974 $ 39 $ 57 $ 96 10.15
2009 5,391 5,196 195 70 52 122 1.60
2010 5,353 5,153 200 70 182 252 0.79
2011 5,680 5,316 364 255 238 493 0.74
2012 6,087 5,895 192 260 231 491 0.39
2013 6,944 5,391 1,553 432 344 776 2.00
2014 7,283 7,384 (101) 275 218 493 (0.20)
STORMWATER UTILITY
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage(3)
2009 2,402 1,309 1,093 75 58 133 8.22
2010 2,357 1,320 1,037 100 178 278 3.73
2011 3,023 1,679 1,344 231 243 474 2.84
2012 3,211 1,497 1,714 462 268 730 2.35
2013 3,194 2,019 1,175 320 309 629 1.87
2014 3,240 1,833 1,407 331 311 642 2.19
SEWAGE DISPOSAL WORKS
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage(3)
2009 6,084 5,093 991 - 7 7 141.57
2010 5,995 5,331 664 33 382 415 1.60
2011 6,699 6,029 670 34 1,129 1,163 0.58
2012 7,878 7,018 860 1,719 1,443 3,162 0.27
2013 8,951 6,113 2,838 2,326 1,423 3,749 0.76
2014 10,083 6,754 3,329 2,603 1,358 3,961 0.84
PARKING BONDS
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage(3)
2005 1,934 960 974 210 54 264 3.69
2006 1,933 977 956 220 44 264 3.62
2007 2,113 1,014 1,099 230 34 264 4.16
2008 2,224 1,495 729 240 23 263 2.77
2009 2,270 1,412 858 250 12 262 3.27
Parking revenue bonds matured in 2010.
(1) Total operating 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.
148
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY TABLE 14
LAST TEN FISCAL YEARS
Water Sewer Gallons
Fiscal Year Revenue Revenue Billed
2005 $ 4,340,789 S 4,478,205
2006 4,798,408 4,920,376 1,842,678,178
2007 4,856,353 5,276,454 1,929,908,816
2008 5,020,001 5,481,074 1,971,517,064
2009 5,358,419 5,821,251 1,892,794,552
2010 5,503,277 5,851,401 1,822,051,488
2011 5,871,246 6,672,890 1,903,364,420
2012 6,297,547 7,825,037 1,914,175,940
2013 7,077,986 8,688,996 1,945,227,547
2014 7,425,259 10,006,408 1,786,040,280
Source: Cash basis receipt ledgers.
Note: Revenue includes penalties, investment earnings and sales tax collected and remitted to the State of Iowa.
WATER RATE SCHEDULE HISTORY
Unit Price by Fiscal Year
Steps Gallons 2014 2013 2012 2011 2010
First 22,440 @ S 0.00387 S 0.00355 S 0.00309 S 0.00294 S 0.00283
Next 89,760 @ 0.00316 0.00290 0.00252 0.00240 0.00231
Next 261,800 @ 0.00294 0.00270 0.00235 0.00224 0.00215
Next 374,000 @ 0.00261 0.00239 0.00208 0.00198 0.00190
Excess @ 0.00229 0.00210 0.00183 0.00174 0.00167
149
CITY OF DUBUQUE,IOWA
WATER METERS BY RATE CLASS TABLE 15
LAST NINE FISCAL YEARS*
Fiscal Year Residential Commercial Industrial Government Total
2006 19,813 1,820 73 35 21,741
2007 19,914 1,839 74 38 21,865
2008 19,970 1,878 70 45 21,963
2009 20,058 1,895 72 48 22,073
2010 20,204 1,887 71 48 22,210
2011 20,338 1,904 79 51 22,372
2012 20,532 1,902 79 52 22,565
2013 20,753 1,921 80 53 22,807
2014 20,887 1,945 81 68 22,981
*Fiscal year 2005 information not available
150
CITY OF DUBUQUE,IOWA
LARGEST WATER AND SEWER CUTOMERS TABLE 16
FISCAL YEAR 2014
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot $ 308,109 1 4.22 % $ 525,431 1 5.26 %
Hormel 158,343 2 2.17 344,119 2 3.45
Dubuque Community School District 75,978 3 1.04 100,322 6 1.00
University of Dubuque 72,829 4 1.00 91,598 8 0.92
Loras College 72,764 5 1.00 103,687 5 1.04
Mercy Medical Center 71,331 6 0.98 107,827 4 1.08
Prairie Farms Dairy Inc 57,773 7 0.79
Finley Hospital 54,865 8 0.75 93,314 7 0.93
Clarke University 46,110 9 0.63 64,564 10 0.65
Premier Linen&Dry Cleaning 42,819 10 0.59 88,012 9 0.88
Inland Protein Corp 142,321 3 1.42
Total Revenue $ 7,307,187 $ 9,987,967
151
CITY OF DUBUQUE,IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS TABLE 17
LAST TEN CALENDAR YEARS
Per Capita Public
Personal Median School Unemployment
Personal Income Age Enrollment Rate
Year Population Income (1) (2) (3) (4)
2005 57,686 1,903,638,000 33,000 37 10,547 4.5 %
2006 57,686 1,993,455,102 34,557 37 10,733 3.5
2007 57,686 2,125,036,868 36,838 37 10,727 3.7
2008 57,686 2,275,135,840 39,440 38 10,614 3.8
2009 57,686 2,233,198,118 38,713 37 10,697 6.2
2010 57,686 2,251,946,068 39,038 37 10,517 6.4
2011 57,637 2,447,843,390 42,470 37 10,467 5.8
2012 57,637 2,532,281,595 43,935 37 10,469 5.2
2013 57,637 2,600,235,618 45,114 39 10,513 4.6
2014 57,637 * * 39 10,578 4.4
Data Sources:
(1) U.S. Department of Commerce,Bureau of Economic Analysis.
(2) Greater Dubuque Development Corporation.
(3) Dubuque Community School District
(4) Iowa Department of Employment Services as of June 30.
* Unavailable at report date.
Per Capita Personal Income (1)was revised by U.S. Department of Commerce,Bureau of Economic
Analysis which also affects Personal Income.
152
CITY OF DUBUQUE,IOWA
PRINCIPAL EMPLOYERS TABLE 18
CURRENT YEAR AND NINE YEARS AGO
2014 2006*
Percentage
of Percentage of
#of Total City #of Total City
Employer Employees Rank Employment Employees Rank Employment
John Deere (2) 2,400 1 4.30 % 1,900 1 3.54 %
Dubuque Community Schools 1,946 2 3.49 1,410 2 2.62
Mercy Medical Center 1,313 3 2.35 1,324 3 2.46
IBM 1,300 4 2.33
Medical Associates 1,011 5 1.81 998 5 1.86
UnityPoint Health-Finley Hospital 859 6 1.54 920 7 1.71
City of Dubuque 698 7 1.25 716 10 1.33
Eagle Window&Door 550 8 0.99 950 6 1.77
Sedgwick 550 9 0.99
Diamond Jo 510 10 0.91
Flexsteel 750 9 1.44
Heartland Financial USA,Inc. (3) 760 8 1.41
McCoy Group(3) 1,200 4 2.23
11,137 19.96 % 10,928 20.37 %
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.
(3) 2006 numbers include employees outside the City
*2005 inform ation unavailable
153
CITY OF DUBUQUE,IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2005 2006 2007 2008
Public Safety
Emergency Communications 10.00 11.00 11.00 11.00
Fire 90.00 90.00 90.00 90.00
Police 97.00 99.00 100.00 101.00
Building Services 7.00 7.00 7.00 7.00
Public Works
Public Works 88.55 87.00 87.00 87.00
Engineering 24.00 25.00 25.00 25.00
Health&Social Services
Health Services 5.00 5.00 5.00 4.00
Human Rights 2.00 3.00 3.00 3.00
Cultural and Recreation
Civic Center 9.15 1.15 0.15 0.15
Library 18.00 18.00 18.00 18.00
Park 21.92 21.92 21.92 21.92
Recreation 8.93 8.93 7.93 7.93
Community&Economic Development
Community/Economic Dev 3.00 3.00 3.00 3.00
Housing Services 21.00 21.00 20.25 18.00
Planning Services 7.00 8.00 8.00 8.00
General Government
Airport 13.00 13.00 13.23 12.00
Cable TV 2.00 2.00 2.00 2.00
City Clerks Office 3.00 3.00 3.00 3.00
City Manager's Office 10.00 11.00 11.00 11.00
Finance 14.00 14.00 14.00 14.00
Legal 2.00 2.62 3.00 3.00
Information Services 6.00 6.00 6.00 7.00
Business Type
Water 23.00 23.00 23.00 23.00
*Water&Resource Recovery Center 18.00 18.00 18.00 18.00
Parking 10.50 8.00 8.00 7.00
Transit 7.00 8.55 8.00 7.00
Total 521.05 518.17 516.48 512.00
Source: City Budget Records
Departments with employees who are allocated to more than one function are reflected in the area with largest number of employees.
*Department renamed in 2011. Formerly known as the Water Pollution Control Plant.
154
TABLE 19
Full-Time Equivalent as of June 30
2009 2010 2011 2012 2013 2014
13.00 13.00 13.00 13.00 13.00 13.00
90.00 90.00 90.00 90.00 90.00 90.00
108.67 110.84 113.34 114.25 115.00 115.08
8.00 8.00 9.00 9.00 9.00 9.24
88.00 87.42 87.42 87.42 86.17 86.42
26.00 26.00 27.00 27.00 29.00 29.00
4.00 4.00 4.00 4.00 4.00 4.00
3.00 3.00 3.00 4.00 5.00 5.00
0.15 0.15 0.15 0.15 0.15 0.15
18.00 18.00 18.00 18.00 19.00 19.00
21.92 22.51 22.50 23.50 23.50 23.50
7.93 8.43 8.93 9.93 9.93 9.93
3.00 3.00 3.00 3.00 3.00 4.00
22.00 22.00 22.25 23.00 25.80 27.00
8.00 8.00 8.00 8.00 8.00 8.00
12.00 12.00 12.00 12.00 12.00 12.00
2.00 2.00 2.00 2.00 2.00 2.00
3.00 3.00 3.00 3.00 3.00 3.00
13.50 15.00 15.00 14.00 15.00 15.00
14.00 14.00 14.00 14.00 14.00 14.08
4.00 4.66 5.00 5.00 5.00 5.00
7.00 7.00 7.00 7.00 7.50 8.00
23.00 24.00 25.00 25.00 25.00 26.00
18.00 18.00 18.00 18.00 18.00 18.00
7.50 9.00 9.00 9.00 9.00 9.00
7.00 6.00 7.00 6.00 6.00 6.32
532.67 539.01 546.59 549.25 557.05 561.72
155
CITY OF DUBUQUE,IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2005 2006 2007 2008
Public Safety
Police
Physical arrests 4,795 4,790 5,078 5,090
Traffic violations 2,171 8,398 6,842 6,881
Parking violations 51,004 46,575 42,530 40,741
Fire
Number of calls answered 4,300 4,176 4,454 4,699
Inspections conducted 1,135 409 360 624
Sewer
Sewage system
Daily average treatment in gallons 8,500,000 8,500,000 8,000,000 10,310,000
Maximum daily capacity of treatment plant in gallons 13,500,000 13,500,000 13,500,000 13,500,000
Water systems
Daily average consumption in gallons 7,720,000 8,057,000 7,950,000 7,812,000
Maximum daily capacity of plant in gallons 18,000,000 18,000,000 18,000,000 17,000,000
Refuse(Municipal Collection)
Tonnage 10,428 10,573 10,807 11,798
Sources: Various City Departments.
Statistics updated for fiscal year 2006,2007&2008.
156
TABLE 20
2009 2010 2011 2012 2013 2014
6,325 6,365 6,350 6,319 6,106 5,532
8,801 8,901 12,289 11,836 12,089 8,959
36,457 37,056 35,799 34,910 35,516 36,768
4,480 4,557 4,844 5,307 4,792 5,165
443 1,035 555 589 512 471
7,981,000 9,068,000 8,132,000 7,817,000 10,987,000 7,091,000
21,131,000 21,131,000 23,240,000 23,240,000 23,240,000 24,500,000
7,845,000 7,684,000 7,636,000 7,226,000 6,953,000 7,235,000
18,000,000 18,000,000 18,000,000 18,000,000 18,000,000 18,000,000
10,774 10,615 10,660 11,180 10,535 10,311
157
CITY OF DUBUQUE,IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
2005 2006 2007 2008
Public safety
Police
Stations 1 1 1 1
Patrol units 19 19 19 19
Fire
Stations 6 6 6 6
Aerial trucks 3 3 3 3
Public works
Streets
Miles(1) 290 295 307 317
Street lights(1) 1,631 1,755 1,802 1,855
Health and social services
Hospital 2 2 2 2
Number of patient beds 421 421 405 405
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 44 44 47 47
Acreage 855 845 898 898
Recreation
Civic center 1 1 1 1
Swimming pools 2 2 2 2
Softball fields 7 7 8 7
Baseball fields 1 1 1 1
Tennis courts 20 19 19 20
Sewer
Sewage system
Miles of sanitary sewer(1) * 263 286 290
Miles of storm sewers(1) * 116 120 122
Number of treatment plants 1 1 1 1
Number of service connectors 21,000 21,443 21,568 21,633
Water systems
Miles of water mains 312 313 315 316
Number of service connectors 21,016 21,257 21,210 21,243
Number of city owned fire hydrants 2,770 2,780 2,798 2,812
Sources: Various City Departments.
(1) City GIS System
*Information not available
158
TABLE 21
2009 2010 2011 2012 2013 2014
1 1 1 1 1 1
19 22 22 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
320 321 325 328 329 331
1,877 1,916 1,931 2,081 2,084 2,110
2 2 2 2 2 2
405 389 389 389 389 389
1 1 1 1 1 1
1 1 1 1 1 1
47 48 48 51 51 51
898 901 901 1,001 1,001 1,001
1 1 1 1 1 1
2 2 2 2 2 2
7 7 7 7 7 7
1 1 1 1 1 1
20 20 20 20 20 20
295 300 300 304 304 307
143 144 150 155 141 144
1 1 1 1 1 1
21,347 21,599 21,702 22,393 22,428 22,888
317 318 319 319.75 321.02 315.28
21,347 21,986 22,092 22,161 22,536 22,702
2,831 2,843 2,854 2,863 2,879 2,336
159
CITY OF DUBUQUE,IOWA Table 22
RETAIL SALES
LAST TEN CALENDAR YEARS
Taxable Number of
Year Retail Sales Businesses
2009 $ 961,287,890 2,026
2010 971,050,048 2,043
2011 1,014,284,468 2,009
2012 1,060,222,499 1,993
2013 1,057,837,212 2,008
2014
Data Sources:
Iowa Department of Revenue
Prior years not available
*Unavailable at report date
160
Compliance Section
June 30, 2014
City of Dubuque, Iowa
161
THIS PAGE IS INTENTIONALLY LEFT BLANK
162
Eid�lly.
CPAs&BUSINESS ADVISORS
Independent Auditor's Report on Internal Control Over Financial Reporting and
on Compliance and Other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditing Standards
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited, in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States, the financial statements of the governmental
activities, the business-type activities, the discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Dubuque, Iowa, as of and for the year ended June 30,
2014, and the related notes to the financial statements, which collectively comprise the City's basic
financial statements, and have issued our report thereon dated December 18, 2014.
The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented component unit
which was audited by other auditors, were not audited in accordance with Government Auditing
Standards, and accordingly, this report does not extend to those financial statements.
The financial statements of Dubuque Convention and Visitors Bureau, a discretely presented component
unit, were not audited in accordance with Government Auditing Standards, and accordingly, this report
does not extend to those financial statements.
Internal Control over Financial Reporting
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting(internal control)to determine the 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.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial
reporting that might be material weaknesses or significant deficiencies and therefore, material weaknesses
or significant deficiencies may exist that were not identified. However, as described in the accompanying
schedule of findings and questioned costs, we identified a certain deficiency in internal control that we
consider to be a material weakness.
www.eidebailly.com
163
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 1563.556.1790 1 F 563.557.7842 1 EOE
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions,to prevent, or
detect and correct, misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the entity's financial statements will not be prevented, or detected and corrected on a timely basis. We
consider the deficiency described in Part 11 of the accompanying schedule of findings and questioned
costs as item 2014-A to be a material weakness.
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.
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
determination of financial statement amounts. However,providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly,we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards. However,we noted certain immaterial instances of non-
compliance which are described in Part IV of the accompanying schedule of findings and questioned
costs.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2014 are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City and are reported in Part IV of the accompanying schedule of
findings and questioned costs. Since our audit was based on tests and samples,not all transactions that
might have had an impact on the comments were necessarily audited. The comments involving statutory
and other legal matters are not intended to constitute legal interpretations of those statutes.
City's Responses to Findings
The City's responses to the findings identified in our audit are described in the accompanying schedule of
findings and questioned costs. The City's responses were not subjected to the auditing procedures applied
in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
,A,,,
SGT
Dubuque, Iowa
December 18, 2014
164
Eid�lly.
CPAs&BUSINESS ADVISORS
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control over Compliance Required by OMB Circular A-133
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque, Iowa's (City) compliance with the types of compliance
requirements described in the OMB Circular-4-133 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, 2014. The City's
major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance with the requirements of laws, regulations, contracts and
grants applicable to its federal programs.
Auditor's Responsibility
Our responsibility is to express an opinion on the compliance for each of the City's major federal
programs based on our audit of the types of compliance requirements referred to above. We conducted
our audit of compliance in accordance with auditing standards generally accepted in the United States of
America; the standards applicable to financial audits contained in Government-4 uditing Standards,
issued by the Comptroller General of the United States; and OMB Circular A-133,Audits of States, Local
Governments, and Non-Profit Organizations. Those standards and OMB Circular A-133 require that we
plan and perform the audit to obtain reasonable assurance about whether noncompliance with the
compliance requirements referred to above that could have a direct and material effect on a major federal
program occurred. An audit includes examining, on a test basis, evidence about the City's compliance
with those requirements and performing such other procedures as we considered necessary in the
circumstances.
We believe that our audit provides a reasonable basis for our opinion on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
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165
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002-2299 1 1563.556.1790 1 F 563.557.7842 1 EOE
Opinion on Each Major Federal Program
In our opinion,the City of Dubuque, Iowa, complied, in all material respects,with the compliance
requirements referred to above that could have a direct and material effect on each of its major Federal
programs for the year ended June 30, 2014.
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the compliance requirements referred to above. In planning and performing our audit of
compliance, we considered the City's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program and to test and report on internal control over compliance in
accordance with OMB Circular A-133, but not for the purpose of expressing an opinion on the
effectiveness of internal control over compliance. Accordingly, we do not express an opinion on the
effectiveness of the City's internal control over compliance.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct,noncompliance with a type of compliance requirement of a
federal program on a timely basis.A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a compliance requirement of a federal program
will not be prevented, or detected and corrected, on a timely basis.A significant deficiency in internal
control over compliance is a deficiency, or a combination of deficiencies, in internal control over
compliance with a type of compliance requirement of a federal program that is less severe than a material
weakness in internal control over compliance,yet important enough to merit attention by those charged
with governance.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified.
The purpose of 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
OMB Circular A-133. Accordingly, this report is not suitable for any other purpose.
,A,,,
SGT
Dubuque, Iowa
December 18, 2014
166
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2014
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Housing and Urban Development:
Direct program:
Community Development Block
Grants/Entitlement Grants 14.218 S 1,083,246
Community Development Block
Grants/Entitlement Grants 14.218 146,690
1,229,936
Pass-through program from:
Iowa Department of Economic Development:
Community Development Block Grants/
State's Program and Non-Entitlement
Grants in Hawaii 14.228 08-DRH-212 10,892
Direct program:
Shelter Plus Care 14.238 101,594
Lower Income Housing Assistance Program-
Section 8 Moderate Rehabilitation 14.856 70,210
Section 8 Housing Choice Vouchers 14.871 3,603,859
Section 8 Housing Choice Vouchers 14.871 429,063
Section 8 Housing Choice Vouchers 14.871 57,391
Section 8 Housing Choice Vouchers 14.871 31,205
Section 8 Housing Choice Vouchers 14.871 31,738
4,153,256
Lead-Based Paint Hazard Control in
Privately-Owned Housing 14.900 1,223,856
Healthy Homes Production Program 14.913 243,683
Total U.S. Department of Housing and Urban
Development 7,033,427
U.S. Department of Justice:
Pass-through program from:
Iowa Department of Justice:
Violence Against Women Formula Grants 16.588 VW-14-42B-CJ 2,833
167
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2014
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Justice: (continued)
Direct program:
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 S 20,655
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 17,851
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 16,454
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 11,371
Pass-through program from:
Dubuque County Sheriffs Office:
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 11-JAG-58372 42,094
108,425
Total U.S. Department of Justice 111,258
U.S. Department of Transportation:
Direct program:
Airport Improvement Program 20.106 4,281,611
Airport Improvement Program 20.106 2,215,834
Airport Improvement Program 20.106 958,968
Airport Improvement Program 20.106 189,288
Airport Improvement Program 20.106 14,843
7,660,544
Pass-through program from:
Iowa Department of Transportation:
Highway Planning and Construction 20.205 TCSP-052-2(129)--9S-31 469,287
Highway Planning and Construction 20.205 BROS-2100(659)--8J-31 357,741
Highway Planning and Construction 20.205 STP-U-2100(634)--70-31 337,630
Highway Planning and Construction 20.205 STP-A-PA-27(4)86-31 247,329
Highway Planning and Construction 20.205 HDP-2100-(655)-71-31 137,551
Highway Planning and Construction 20.205 ESL-2100-(646)-7S-31 17,061
Highway Planning and Construction 20.205 SRTS-U-2100(663)--8U-31 15,929
1,582,528
168
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2014
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Transportation: (continued)
Federal Transit Cluster:
Direct program:
Federal Transit- Capital Investment
Grants 20.500 S 270,383
Pass-through program from:
Iowa Department of Transportation:
Federal Transit-Capital Investment
Grants 20.500 IA-04-1029 19,957
290,340
Direct program:
Federal Transit-Formula Grants 20.507 852,966
Pass-through program from:
Iowa Department of Transportation:
Federal Transit-Formula Grants 20.507 IA-95-XO14 Shopping 109,553
Federal Transit-Formula Grants 20.507 IA-95-XO14 Night Rider 107,820
1,070,339
Direct program:
State of Good Repair Grants Program 20.525 559,506
Total Federal Transit Cluster 1,920,185
Federal Services Programs Cluster:
Pass-through program from:
Iowa Department of Transportation:
Enhanced Mobility of Seniors and
Individuals with Disabilities 20.513 IA-16-X005-210-14 45,811
New Freedom Program 20.521 IA-57-X009-210-14 85,126
New Freedom Program 20.521 IA-57-X009-210-13 22,513
107,639
Total Federal Services Programs
Cluster 153,450
Pass-through program from:
Iowa Department of Public Safety:
State and Community Highway Safety 20.600 PAP 13-03 TASK 06 10,874
State and Community Highway Safety 20.600 PAP 14-402-MOOP 8,673
19,547
Total U.S. Department of Transportation 11,336,254
169
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2014
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
Environmental Protection Agency:
Direct program:
Climate Showcase Communities Grant
Program 66.041 $ 19,773
Pass-through program from:
Iowa Finance Authority:
Capitalization Grants for Clean Water
State Revolving Funds 66.458 CS-192427-01 240,202
Direct program:
Brownfields Assessment and Cleanup
Cooperative Agreements 66.818 2,682
Total Environmental Protection Agency 262,657
U.S. Department of Energy:
Direct program:
ARRA-Energy Efficiency and Conservation
Block Grant Program(EECBG) 81.128 97,338
U.S. Department of Health and Human Services:
Pass-through program from:
Iowa Department of Human Services
Substance Abuse and Mental Health
Services -Projects of Regional and
National Significance 93.243 HS-FYI4-EUDL 2,280
Corporation for National and Community Service:
Pass-through program from:
Iowa Commission on Volunteers:
AmeriCorps 94.006 13-AC-13 159,060
AmeriCorps 94.006 12-AC-13 43,062
202,122
Iowa Economic Development
Volunteer Generation Fund 94.021 12-VGF-N6 33,471
Total Corporation for National and Community Service 235,593
170
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2014
Federal Pass-Through
CFDA Entity Identifying Federal
Grantor/Program Number Number Expenditures
U.S. Department of Homeland Security:
Pass-through program from:
Iowa Department of Homeland Security:
Disaster Grants -Public Assistance
(Presidentially Declared Disasters) 97.036 FEMA DR-4018-IA S 95,668
Total S 19,174,475
171
City of Dubuque
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2014
Note 1 - Basis of Presentation
The accompanying schedule of expenditures of federal awards includes the federal grant activity of the City of
Dubuque, Iowa, and is presented on the modified accrual basis of accounting. The information in this schedule is
presented in accordance with the requirements of OMB Circular A-133, Audits of States, Local Governments, and
Non-Profit Organizations. The City received federal awards both directly from federal agencies and indirectly
through pass-through entities. Federal financial assistance provided to a subrecipient is treated as an expenditure
when it is paid to the subrecipient.
Governmental fund types account for the City's federal grant activity. Therefore, expenditures in the schedule of
expenditures of federal awards are recognized on the modified accrual basis —when they become a demand on
current available financial resources. The City's summary of significant accounting policies is presented in Note 1
in the City's basic financial statements.
Note 2 - Subrecipients
Of the federal expenditures presented in the schedule, the City of Dubuque, Iowa, provided federal awards to
subrecipients as follows:
Federal Amount
CFDA Provided to
Program Title Number Subrecipients
Community Development Block Grants/Entitlement Grants 14.218 S 61,311
172
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2014
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued Unmodified
Internal control over financial reporting:
Material weaknesses identified Yes
Significant deficiencies identified not
considered to be material weaknesses None reported
Noncompliance material to financial statements noted? No
Federal Awards
Internal control over major programs:
Material weaknesses identified No
Significant deficiencies identified not
considered to be material weaknesses None reported
Type of auditor's report issued on compliance for major programs: Unmodified
Any audit findings disclosed that are required to be reported in
accordance with OMB Circular A-133 §.510(a): No
Identification of major programs:
Name of Federal Program CFDA Number
Section 8 Housing Choice Vouchers 14.871
Airport Improvement Program 20.106
Dollar threshold used to distinguish between type A
and type B programs: $575,234
Auditee qualified as low-risk auditee? No
173
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2014
Part II: Findings Related to the Financial Statements:
MATERIAL WEAKNESS
2014-A Material Audit Adjustments
Criteria—A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles.
Condition—During the course of our engagement, we proposed material audit adjustments to notes
receivable, capital assets, and net position balances that were not identified as a result of the City's
existing internal controls and, therefore, could have resulted in a material misstatement of the City's
financial statements.
Cause—There is a limited number of office employees with varying levels of experience with the
reporting requirements. This significantly limits the City's review procedures.
Effect—The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendation—We recommend that finance staff continue to receive relevant training and that
additional review procedures be implemented in preparing the financial statements.
Response—The Finance Department will continue to receive relevant training, and management
will review all documentation completed by staff for use in preparing the financial statements.
Staffing will be reviewed in future budgets.
Part III: Findings and Questioned Costs for Federal Awards:
There were no findings and questioned costs to report.
174
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2014
Part IV: Other Findings Related to Required Statutory Reporting:
2014-IA-A Certified Budget—Disbursements during the year ended June 30, 2014 exceeded the amount
budgeted in the debt service function. Chapter 384.20 of the Code of Iowa 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 Iowa before disbursements were allowed to exceed the budget.
Response —The budget will be amended in the future, if applicable.
2014-IA-B Questionable Expenditures—No expenditures that may not meet the requirements of public
purpose as defined in an Attorney General's opinion dated April 25, 1979, were noted.
2014-IA-C Travel Expense—No expenditures of City money for travel expenses of spouses of City officials
or employees were noted.
2014-IA-D Business Transactions—Business transactions between the City and City officials or employees
are detailed as follows:
Name, Title, and Transaction
Business Connection Description Amount
Joleen Murphy, employee, spouse is Construction $ 53,898
owner of Murphy Construction Group
Lynn Schlueter, employee, son-in-law is Services 12,223
owner of Schueller Hard Surface
Restoration
Eileen Trimble, employee, brother and Services 6,624
sister-in-law are owners of Jet Business
Solutions
Janna Beau, employee, sister and brother- Services 2,845
in-law are owners of Kramer Pest Control
John Hefel, employee, spouse is owner of Services 413
A Frame of Mind Framing& Gallery
In accordance with Chapter 362.5(3)(j)of the Code of Iowa, the transactions with A Frame of Mind
Framing& Gallery do not appear to represent conflicts of interest since total transactions with this
individual were less than $1,500 during the fiscal year. The transactions with Murphy Construction
Group and Jet Business Solutions do not appear to be a conflict of interest since they were entered
into through competitive bidding in accordance with Chapter 362.5(3) (d) of the Code of Iowa. The
transactions with Kramer Pest Control and Schueller Hard Surface Restoration may represent a
conflict of interest.
175
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2014
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
Recommendation—We recommend the City review the transactions with Kramer Pest Control and
Schueller Hard Surface Restoration with legal counsel.
Response—The transactions with Kramer Pest Control and Schueller Hard Surface Restoration are
being reviewed with legal counsel.
2014-IA-E Bond Coverage— Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to ensure the coverage is
adequate for current operations.
2014-IA-F Council Minutes—No transactions were found that we believe should have been approved in the
Council minutes but were not.
2014-IA-G Deposits and Investments—During fiscal year 2014, the City's investment managers purchased
several certificates of deposits through secondary markets. Secondary certificates of deposits are
allowed under the Code of Iowa, if they are purchased through the Certificate of Deposit Account
Registry Service (CDARS)program. However, the City's secondary certificates of deposits were
not purchased under the CDARS program and may be in violation of Chapter 12C of the Code of
Iowa.
Recommendation—The City should consult with its investment managers to ensure their
secondary certificates of deposits are in compliance with Chapter 12C of the Code of Iowa.
Response—The City has instructed the investment manager to sell all certificates of deposits for
banks outside the state of Iowa that were not purchased through the Certificate of Deposit Account
Registry Services (CDARS)program. A letter was sent to the four investment managers informing
them that certificate of deposits must be with banks located within the State of Iowa or purchased
through the CDARS program.
2014-IA-H Annual Urban Renewal Report—The annual urban renewal report was properly approved and
certified to the Iowa Department of Management on or before December 1. However, the following
reporting exception was noted:
The City understated the amount reported as TIF debt outstanding on the Levy Authority Summary
by only reporting one year of interest payments due on several bond issues, instead of the total of
all interest payments outstanding.
Recommendation —The City has made the needed revisions. To minimize the likelihood of future
errors, the City should implement additional controls over the management of its approximately
$130,000,000 in TIF indebtedness. Such controls should include formalizing review and approval
procedures.
Response—The City will require additional training of the Economic Development staff on the
State Urban Renewal Annual Report and the County Urban Renewal Report so that the Economic
Development Department can facilitate a review and approval process of the Urban Renewal
Annual Reports prior to the reports being approved by City Council and submitted to the
Department of Management and Dubuque County.
176
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2014
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
2014-IA-I Revenue Debt—The Water Utility revenue debt covenants include a requirement for the utility to
produce net revenues of at least 125%of the current year debt service requirement of the Series
2008 water utility revenue bonds, and all other revenue bonds or notes ranking on a parity with the
2008 water utility revenue bonds. In January of 2011, the City entered into a subordinate agreement
with the Iowa Finance Authority (lender for the water revenue capital loan notes)which
retroactively subordinates the water revenue capital loan notes in relation to the Series. This
agreement allows the City to exclude the water revenue loan notes in the 125%computation until
December 31, 2015. Even when the water revenue capital loan notes are excluded, the City still did
not meet the 125%requirement for fiscal year 2014.
The Sewage Disposal Works' revenue capital loan notes include a requirement for the utility to
produce net revenues of at least 110% of the current year debt service requirement. The Sewage
Disposal Works did not meet this requirement in fiscal year 2014.
No instances of non-compliance with the provisions of the Stormwater Utility revenue debt
resolutions were noted.
Recommendation—The City should review the bond covenant requirements and contact their
bond consultants.
Response—Water distribution system experienced higher than normal maintenance expenses due
to abnormally cold weather and associated water main breaks. Water rates were increased by 9%in
fiscal year 2014 and an additional 5%increase in fiscal year 2015. Revenue for the first quarter of
fiscal year 2015 is 5%above the same period in fiscal year 2014. Water rates will be increased a
projected 9%each subsequent fiscal year until the bond covenant is met.
Although sewer rates were increased by 17%in fiscal year 2014, the revenue was less than
projected due to lower than anticipated actual usage. Sewer rates were increased an additional 5%
for fiscal year 2015. Sewer rates will be increased a projected 9%each subsequent fiscal year until
bond covenant is met.
The City's bond consultants have been informed of the noncompliance and appropriate action will
be taken.
2014-IA-J Tax Increment Financing—Chapter 403.19 of the Code of Iowa provides a municipality shall
certify indebtedness to the County Auditor. While performing our audit procedures, we noted
several amounts certified in the fall of 2013 that were based on incorrect calculations.
Recommendation—The City should have certified the needed corrections in the fall 2014. To
minimize the likelihood of future errors, the City should implement additional controls over the
management of its approximately $130,000,000 in TIF indebtedness. Such controls should include
increasing supporting documentation for the amounts certified and formalizing a review and
approval procedure.
177
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2014
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
Response—The City identified and corrected the misreported debt amounts on City TIF Form 3 of
the County TIF Certification Form that was filed December 1, 2014. The TIF form is prepared from
source documentation including general ledger reports, TIF development agreements and TIF debt
amortization schedules. Due to time constraints from the State TIF report also being due on
December 1, 2014, this error was not caught prior to filing. The City will continue to monitor
source documents to prevent future errors.
2014-IA-K Solid Waste Tonnage Fees Retained—No instances of non-compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 45513.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
2014-IA-L Financial Assurance—The Dubuque Metropolitan Area Solid Waste Agency, a component unit of
the City, has demonstrated financial assurance for closure and postclosure care costs by establishing
a local government dedicated fund as provided in 567-113.14(6) of the Iowa Administrative Code.
178
City of Dubuque
Corrective Action Plan
Year Ended June 30, 2014
Contact Person, Anticipated
Comment Title, Date of
Number Comment Title Corrective Action Plan Phone Number Completion
Findings Related to the Financial Statements:
2014-A Material Audit The corrective action plan Kenneth J TeKippe, Not determined at
Adjustments was documented in our Finance Director this date.
response to the auditor's 563-589-4133
comment. See the Schedule
of Findings and Questioned
Costs.
Findings Related to the Federal Program:
There were no findings reported.
179
City of Dubuque
Summary Schedule of Prior Federal Audit Findings
Year Ended June 30, 2014
There were no prior year federal findings.
180
s
EideBailly®
CPAs&BUSINESS ADVISORS
December 18,2014
To the Honorable Mayor and
Members of the City Council
City of Dubuque,Iowa
We have audited the financial statements of the governmental activities,the business-type activities,the
aggregate discretely presented component units, each major fund,and the aggregate remaining fund
information of the City of Dubuque,Iowa, for the year ended June 3 0, 2014. We did not audit the
financial statements of Dubuque Initiatives and Subsidiaries(a discretely presented component unit).
Those financial statements were audited by other auditors whose report thereon has been furnished to us,
and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives and Subsidiaries, is
based solely on the reports of the other auditors. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, Government Auditing
Standards, and OMB Circular A-133, as well as certain information related to the planned scope and
timing of our audit. We have communicated such information in our letter to you dated May 23,2014.
Professional standards also require that we communicate to you the following information related to our
audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Dubuque,Iowa, are described in Note 1 to the financial
statements. During the year ended June 30, 2014,the City adopted GASB 65,Items Previously Reported
as Assets and Liabilities.The adoption of this statement resulted in the reclassification of items
previously reported in liabilities as deferred revenues.These items are now reported in deferred inflows of
resources as unavailable revenues.No other significant new accounting policies were adopted, and the
application of other existing policies was not changed during the year ended June 30,2014. We noted no
transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus.All significant transactions have been recognized in the financial statements in the proper
period.
Accounting estimates are an integral part of the financial statements prepared by management and are
based on management's knowledge and experience about past and current events and assumptions about
future events. Certain accounting estimates are particularly sensitive because of their significance to the
financial statements and because of the possibility that future events affecting them may differ
significantly from those expected. The most sensitive estimates affecting the City's financial statements
were:
Management's estimate of incurred but not reported health insurance and workers' compensation
liabilities are based on third-party administrator's calculations and estimates. We evaluated the
key factors and assumptions used to develop incurred by not reported liabilities in determining
that they are reasonable in relation to the financial statements taken as a whole.
www.eidebailly.com
1545 Associates Dr.,Ste. 101 1 Dubuque,IA 52002 1 T 563.556.1790 1 F 563.557.7842 1 EOE
To the Honorable Mayor and
Members of the City Council
City of Dubuque,Iowa
Page 2
Management's estimate of other postemployment benefits liability is based on a calculation of
actuarially determined contributions for health insurance benefits. We evaluated the key factors
and assumptions used to develop other postemployment benefits liability in determining that it is
reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management.Management has corrected all such misstatements. The following misstatements,detected
as a result of audit procedures,were corrected by management:
Equity Increase(Decrease)
Governmental/
Fund Business-type
Statements Activities
General Fund
To decrease notes receivable for forgivable loans inadvertently
recorded by the City(Material Misstatement) $ (1,053,549) $ (1,053,549)
Sewage Disposal Works
To reclass$537,658 from other operating revenue to
nonoperating contributions - -
Parking Facilities
To transfers parking related capital assets from Governmental
Activities to Parking Facilities(Material Misstatement) 1,008,466 1,008,466
Governmental Activities
To transfers parking related capital assets from Governmental
Activities to Parking Facilities (1,008,466) (1,008,466)
To correct net position balances by increasing net investment in
capital assets $12,022,267, decreasing restricted net position
for community development$2,997,693, and decreasing
unrestricted net position$9,024,574(Material Misstatement) - -
To the Honorable Mayor and
Members of the City Council
City of Dubuque,Iowa
Page 3
Disagreements with Management
For purposes of this letter, a disagreement with management is a financial accounting,reporting, or
auditing matter, whether or not resolved to our satisfaction,that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 18,2014.
Management Consultations with Other Independent Accountants
In some cases,management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a"second opinion"on certain situations.If a consultation involves
application of an accounting principle to the City's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements,our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts.To our
knowledge,there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards,with management each year prior to retention as the City's auditors. However,these
discussions occurred in the normal course of our professional relationship,and our responses were not a
condition to our retention.
Other Matters
We applied certain limited procedures to the management's discussion and analysis,the budgetary
comparison schedule, and schedule of funding progress for the retiree benefit plan,which are required
supplementary information(RSI)that supplements the basic financial statements. Our procedures
consisted of inquiries of management regarding the methods of preparing the information and comparing
the information for consistency with management's responses to our inquiries,the basic financial
statements, and other knowledge we obtained during our audit of the basic financial statements. We did
not audit the RSI and do not express an opinion or provide any assurance on the RSI.
We were engaged to report on the combining nonmajor fund financial statements and the schedule of
expenditures of federal awards,which accompany the financial statements but are not RSI. With respect
to this supplementary information,we made certain inquiries of management and evaluated the form,
content,and methods of preparing the information to determine that the information complies with
accounting principles generally accepted in the United States of America,the method of preparing it has
not changed from the prior period,and the information is appropriate and complete in relation to our audit
of the financial statements. We compared and reconciled the supplementary information to the underlying
accounting records used to prepare the financial statements or to the financial statements themselves.
To the Honorable Mayor and
Members of the City Council
City of Dubuque,Iowa
Page 4
We were not engaged to report on introductory and statistical sections,which accompany the financial
statements but are not RSI. We did not audit or perform other procedures on this other information and
we do not express an opinion or provide any assurance on it.
This information is intended solely for the use of the Mayor, City Council, and management of the City of
Dubuque,Iowa, and is not intended to be, and should not be,used by anyone other than these specified
parties.
Sincerely,
EIDE BAILLY LLP
SGT
Dubuque,Iowa
THE CITY OF Dubuque
AII-America City
DUBgkE 1
Masterpiece on the Mississippi 2007-2012-2013
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Responses to Auditor's Findings
DATE: December 23, 2014
INTRODUCTION
The Auditor's Communication with Those Charged with Governance letter was issued
by Eide Bailly LLP on December 18, 2014 and is hereby submitted. The letter is
required by AU 260 and was formally referred to as the management letter.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2014 details specific findings. Pages 173-178 of the report provide this information
and city responses. In addition to the comments in the report, the Auditor's
Communication with Those Charged with Governance letter dated December 18, 2014
was issued which includes more general comments relative to the audit.
DISCUSSION
Most of the information in the Auditor's Communication with Those Charged with
Governance does not warrant a response.
2014-A Material Audit Adjustment (Page 174 in CAFR)
Housing Rehab loans ($1,053,549) previously expensed were moved to receivables
since ultimately repayment would be made when the properties were sold. Auditors
determined that since the actual repayment dates are underminable the loans do not
qualify as receivables.
Expenses for the intermodal facilities ($1 ,008,466) paid with TIF dollars were classified
as government assets. Auditors determined that the since Parking will actually receive
the benefit from the assets, the assets should be classified as enterprise Parking.
Rebate received in the sewage fund of$537,658 was recorded as operating revenue.
Rebates are normally small and classified other operating revenue. The auditors
determined because of the amount of the rebate it should be moved to non-operating
contributions to not distort operating revenue with a one-time revenue.
The City established a new governmental fund, Sales Tax Increment, to track revenue
and expenses related to the flood mitigation grant. Loan proceeds of$12,022,267 were
recorded in this new fund at fiscal year end. For financial reporting only this fund is
combined with storm water and reported as enterprise. When calculating the net
investments in capital assets the debt proceeds were inadvertently used in both the
governmental and enterprise computations.
Computation of funds restricted for community development on the statement of net
position includes the total fund balance of Community Development and all the other
government funds restricted for community programs. The Community Development
Fund has funds restricted for community programs ($2,997,693). This amount was
picked up twice in computing funds restricted for community development.
Finance is implementing additional controls to help identify these issues before auditor
review.
2014-IA-D — Related Parties Transactions (Page 176 in CAFR)
During preparation for City audit, staff identified two vendors whose owners were
related to City employees. It is not always apparent to departments when City
employees are related to business owners. The City continues to review procedures to
be more proactive in identifying potential related party transactions.
2014-IA-G Deposits and Investments (Page 176 in CAFR)
An investment manager purchased FDIC insured certificates of deposit through
secondary markets, which are allowable under the City investment policy. However, the
state requires any certificate of deposit purchased from a financial institution not located
in Iowa to be purchased through Certificate of Deposit Account Registry Service
(CDARS) program. The investment managers were notified for any future certificate
acquisitions. At no time were City funds at risk since certificate amounts were under the
$250,000 FDIC limit.
2014-IA-H Annual Urban Renewal Report (Page 176 in CAFR)
The annual urban renewal report did not include all TIF interest payments outstanding.
The City made the necessary revisions. Additional training of Economic Development
staff on annual reports will be undertaken to facilitate a review and approval process
prior to submitting to Iowa Department of Manager.
2014-IA-1 Revenue Debt (Page 177 in CAFR)
The water and sewer revenue bond debt covenants were not met. The bond
consultants were notified and rate increases and operating expenses are being
reviewed to address covenant issues.
2014-IA-J Tax Increment Financing (Page 177 in CAFR)
Tax Increment Financing (TIF) certification of debt to the County contained an incorrect
calculation in the Fall of 2014. The information was corrected with the County TIF
Certification Form filed in December 2014.
KT/e m I