Comprehensive Financial Annual Report (CAFR)THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2008 Comprehensive Annual
Financial Report (CAFR), Parking Facilities Financial Statements,
Management Letter and Responses to Management Letter
DATE: January 14, 2009
Finance Director Ken TeKippe is transmitting the Fiscal Year 2008 Comprehensive
Financial Report (CAFR), Parking Facilities Financial Statements, Management Letter
and City Responses to the Management Letter. The Auditor's comments are attached,
as well as Finance Department responses.
Michael C. Van Milligen
MCVM:Iw
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Submission of Fiscal Year Ended June 30, 2008 Comprehensive Annual
Financial Report (CAFR), Parking Facilities Financial Statements,
Management Letter and Responses to Management Letter
DATE: December 29, 2008
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2008 CAFR and Parking
Facilities Financial Statements audited by Eide Bailly, LLP, and to enclose the Auditor's
Management Letter along with the City Finance staff's response. The City's
independent auditor issued an unqualified opinion on the financial statements.
BACKGROUND
The City of Dubuque is required to have an annual audit in accordance with generally
accepted auditing standards, Chapter 11 of the Code of Iowa, Government Auditina
Standards and U.S. Office of Management and Budget (OMB) 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 Parking Facilities and Dubuque
Metropolitan Area Solid Waste Agency and have been received. The financial
information for these entities is included in the City of Dubuque CAFR.
AUDITOR'S MANAGEMENT LETTER
As part of the annual audit, the Auditor provides comments in a management letter for
improving the financial management system of the City. The Auditor's comments are
enclosed as well as Finance Department responses.
ACTION STEP
It is recommended that the City Council receives and files the Fiscal Year 2008 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.
KJT/jmg
Enclosures: Fiscal Year 2008 CAFR
Parking Facilities Financial Statements
Auditor Management Letter
Responses to Comments in Auditor Management Letter
2
THE CITY OF DUBUQUE
Masterpiece on the Mississippi
Dubuque
All-American City
2007
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Responses to Audit Management Letter - Fiscal Year Ended June 30, 2008
DATE: December 29, 2008
INTRODUCTION
Responses to the "other comments" section of the December 16, 2008 management
letter issued by Eide Bailly LLP subsequent to completion of the Fiscal Year 2008 audit
of the City are hereby submitted.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2008 details specific findings. Pages 106-108 of the report provide this
information. In addition to the comments in the report, a management letter dated
December 16, 2008 was issued which includes more general comments relative to
improving the City's overall accounting and control systems.
DISCUSSION
Finance Department responses to the Auditor's other comments (listed in italics) follow:
Conversion of Accounting Records
Auditor comment
The City maintains its records using the cash basis of accounting. However, in order to
comply with accounting principles generally accepted in the United States of America,
the comprehensive annual financial report (CAFR) must be prepared using the modified
accrual/accrual basis of accounting. Eide Bailly LLP currently posts all adjustments at
year-end which are necessary to convert the City's cash-basis amounts to the amounts
used in the CAFR.
At this time, the City is preparing the workpapers needed to convert the accounting
records to the modified accrual/accrual basis at year-end. Eide Bailly LLP posts the
journal entries and prepares the financial statements. Although it may require
increased staffing levels, we encourage the Finance Department to continue in their
advancement of converting to the modified accrual/accrual basis and preparation of the
financial statements required in the CAFR.
City of Dubuque response
As noted in the management letter, City staff prepared all workpapers to convert
records to the modified accrual/accrual basis. City staff will continue to work towards
converting records from cash to GAAP at year end and preparation of the financial
statements. In order for the City to prepare its own CAFR, we would need to hire
additional professional staff and provide required annual training. The cost of this
would exceed the anticipated reduction in audit fees. The current audit engagement
arrangement (covers FY'06-FY'10) provides for the auditing firm to convert the records
and prepare the financial statements.
New Governmental Accounting Standards Board (GASB) Statements
Auditor comment
The Governmental Accounting Standards Board (GASB) has issued six statements not
yet implemented by the City of Dubuque. The statements, which might impact the City,
are as follows:
GASB Statement No. 45
Auditor comment
Accounting and Financial Reaortino by Emalovers for Postemalovment Benefits Other
Than Pensions, issued June 2004, will be effective for the City for the fiscal year ending
June 30, 2009. This statement establishes standards for the measurement,
recognition, and display of OPEB expense%xpenditures and related liabilities (assets),
note disclosures, and, if applicable, required supplementary information in the financial
reports of state and local governmental employers.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm and Personnel
Department to provide any information required by GASB 45. Implementation is next
2
fiscal year, with consultant dollars budgeted in FY'09 to assist in gathering required
information. A preliminary consultant report has been received.
GASB Statement No. 47
Auditor comment
Accounting for Termination Benefits, issued June 2005, establishes accounting
standards for termination benefits. For termination benefits provided through an
existing defined benefit OPEB plan, the provisions of this statement should be
implemented simultaneously with the requirements of Statement No. 45. For all other
termination benefits, this statement is effective for the fiscal year ending June 30, 2006.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm and Personnel
Department to provide any information required by GASB 47 that will be implemented
with GASB 45. A portion of GASB 47 was implemented during FY'06.
GASB Statement No. 49
Auditor comment
Accounting and Financial Reporting for Pollution Remediation Obligations, issued
November 2006, will be effective for the fiscal year ending June 30, 2009. This
statement establishes standards for accounting and financial reporting for obligations to
address the current or potential detrimental effects of existing pollution.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm and other City
departments to provide any information required by GASB 49. Implementation is next
fiscal year.
GASB Statement No. 51
Auditor comment
Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be
effective for the fiscal year ending June 30, 2010. This statement requires that all
intangible assets not specifically excluded by its scope be classified as capital assets.
City of Dubuque response
3
The City Finance Department will coordinate with the CPA audit firm to provide any
information required by GASB 51. Since the implementation is two fiscal years away,
time is available to research any requirements applicable to the City of Dubuque.
GASB Statement No. 52
Auditor comment
Land and Other Real Estate Held as Investments by Endowments. issued November
2007, will be effective for the fiscal year ending June 30, 2009. This statement
establishes consistent standards for the reporting of land and other real estate held as
investments by essentially similar entities.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm and other City
departments to provide any information required by GASB 49. Implementation is next
fiscal year.
GASB Statement No. 53
Auditor comment
Accounting and Financial Reaortina for Derivative Instruments, issued June 2008, will
be effective for the fiscal year ending June 30, 2010. This statement addresses the
recognition, measurement, and disclosure of information regarding derivative
instruments entered into by state and local governments.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm to provide any
information required by GASB 51. Since the implementation is two fiscal years away,
time is available to research any requirements applicable to the City of Dubuque.
KJT/jmg
Enclosure
4
Eide Bailly
CPAs & BUSINESS ADVISORS
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 discretely
presented c.,~uYOnent unit, each major fund, and the aggregate remaining fund information of the City of
Dubuque, Iowa, for the year ended June 30, 2008, and have issued our report thereon dated December 16, 2008.
Professional standards require that we provide you with the following information related to our audit.
Our Responsibilities under U.S. Generally Accepted Auditing Standards and OMB
Circular A-133
As stated in our engagement letter dated May 14, 2008, our responsibility, as described by professional standards,
is to express opinions about whether the fmancial statements prepared by management with your oversight are
fairly presented, in all material respects, in conformity with U.S. generally accepted accounting principles. Our
audit of the financial statements does not relieve you or management of your responsibilities.
In planning and performing our audit, we considered the City's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinions on the financial statements and not
to provide assurance on the internal control over fmancial reporting. We also considered internal control over
c.,u~Yliance with requirements that could have a direct and material effect on a major federal program in order to
determine our auditing procedures for the purpose of :,,~Y. essing our opinion on compliance and to test and report
on internal control over compliance in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether the City's fmancial statements are free of material
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts, and
grants, 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. Also in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City's
compliance with the types of compliance requirements described in the "U.S. Office of Management and Budget
(OMB) Circular A-133 Compliance Supplement" applicable to each of its major federal programs for the purpose
of ~xr~essing an opinion on the City's compliance with those requirements. While our audit provides a reasonable
basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements.
Planned Scope and Timing of the Audit
We performed the audit according to the planned scope and timing previously communicated to you in our
engagement letter dated May 14, 2008, and in our meeting about planning matters on August 7, 2008.
PEOPLE. PRINCIPLES. POSSIBILITIES.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, Iowa 52002-2273 1 Phone 563.556.1790 1 Fax 563.557.7842 1 EOE
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 2
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 are described in Note 1 to the financial statements. No new
accounting policies were adopted, and the application of existing policies was not changed during 2008. We noted
no transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus. There are no significant transactions that have been recognized in the financial statements in a
different period than when the transaction occurred.
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 financial statements were:
Management's estimate of the depreciable lives is based on past history of life cycles of capital assets. We
evaluated the key factors and assumptions used to develop the depreciable lives in determining that they
are reasonable in relation to the financial statements taken as a whole.
Management's estimate of the cost of contributed infrastructure from developers is based on estimated
unit cost on City funded projects. We evaluated the key factors and assumptions used to develop the
contributed infrastructure costs in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management's estimates of the incurred but not reported health and workers' compensation liabilities are
based on third-party administrator's calculations and estimates. We evaluated the key factors and
assumptions used to develop the incurred but not reported liabilities in determining that they are
reasonable in relation to the financial statements taken as a whole.
The disclosures in the financial statements 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 trivial, and communicate them to the appropriate level of management. Management has
corrected all such misstatements.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as 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.
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 3
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 16, 2008.
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 Comments
We have included additional comments regarding the financial statements and operations. These comments are
not a result of in-depth study of any specific areas but are based on observations made during the course of our
audit.
This information, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque, Iowa, may
report, including federal awarding agencies and pass-through entities. This report is not intended to be and should
not be used by anyone other than these specified parties.
As always, we will be happy to discuss these or any other topics at your convenience. We would like to take this
opportunity to express our appreciation to you and your staff for the fine cooperation that we received during the
course of the audit. We look forward to many years of continued service to the City of Dubuque, Iowa.
~G~
Dubuque, Iowa
December 16, 2008
CITY OF DUBUQUE
YEAR ENDED JUNE 30, 2008
O i t~;R COMMENTS
Conversion of Accounting Records
The City maintains its records using the cash basis of accounting. However, in order to comply with accounting
principles generally accepted in the United States of America, the comprehensive annual financial report (CAFR)
must be prepared using the modified accruaUaccrual basis of accounting. Eide Bailly LLP currently posts all
adjustments at yeaz-end which are necessary to convert the City's cash-basis amounts to the amounts used in the
CAFR.
At this time, the City is preparing the worlcpapers needed to convert the accounting records to the modified
accruaUaccnial basis at year-end. Eide Bailly LLP posts the journal entries and prepazes the fmancial statements.
Although it may require increased staffmg levels, we encourage the Finance Department to continue in their
advancement of converting to the modified accrual/accrual basis and Y~..Yazation of the fmancial statements
required in the CAFR.
Governmental Accounting Standards Board (GASB)
The Governmental Accounting Standazds Boazd (GASB) has issued six statements not yet implemented by the
City of Dubuque. The statements, which might impact the City of Dubuque, are as follows:
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other Than
Pensions, issued June 2004, will be effective for the fiscal yeaz ending June 30, 2009. This statement establishes
standards for the measurement, recognition, and display of other postemployment benefit (OPEB)
expense/expenditures and related liabilities (assets), note disclosures, and, if applicable, required supplementary
information in the fmancial reports of state and local governmental employers.
Statement No. 47, Accounting for Termination Benefits, issued June 2005, establishes accounting standazds for
termination benefits. For termination benefits provided through an existing defined benefit OPEB plan, the
provisions of this statement should be implemented simultaneously with the requirements of Statement No. 45.
For all other termination benefits, this statement was effective for the fiscal year ended June 30, 2006.
Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, issued November
2006, will be effective for the fiscal year ending June 30, 2009. This statement establishes standards for
accounting and financial reporting for obligations to address the current or potential detrimental effects of existing
pollution.
Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be effective
for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not specifically excluded
by its scope be classified as capital assets.
Statement No. 52, Land and Other Real Estate Held as Investments by Endowments, issued November 2007, will
be effective for the fiscal year ending June 30, 2009. This statement establishes consistent standazds for the
reporting of land and other real estate held as investments by essentially similar entities.
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, issued June 2008, will be
effective for the fiscal year ending June 30, 2010. This statement addresses the recognition, measurement, and
disclosure of information regazding derivative instruments entered into by state and local governments.
COMPREHENSIVE ANNUAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
CITY OF DUBUQUE, IOWA
Prepared by:
Department of Finance
INTRODUCTORY SECTION
CITY OF DUBUQUE, IOWA
CITY OF DUBUQUE, IOWA
Table of Contents
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-9
City Organizational Chart 10
Officials 11
Certificate of Achievement for Excellence in Financial Reporting 12
FINANCIAL SECTION
Independent Auditor's Report 13-14
Management's Discussion and Analysis 15-22
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets 1 23-24
Statement of Activities 2 25
Fund Financial Statements
Balance Sheet -Governmental Funds 3 26
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets 3-1 27
Statement of Revenues, Expenditures, and Changes in Fund
Balances -Governmental Funds 4 28
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4-1 29
Statement of Net Assets -Proprietary Funds 5 30-31
Statement of Revenues, Expenses, and Changes in Fund Net Assets
(Deficit) -Proprietary Funds 6 32
Statement of Cash Flows -Proprietary Funds 7 33-34
Statement of Fiduciary Assets and Liabilities 8 35
Notes to Financial Statements 36-60
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances -Budget
and Actual (Budgetary Basis) -Governmental Funds and Enterprise Funds 61
Notes to Required Supplementary Information -Budgetary Reporting 62
Combining Fund Statements
Combining Balance Sheet -Nonmajor Governmental Funds A-1 63-64
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances -Nonmajor Governmental Funds A-2 65-66
Combining Statement of Net Assets -Nonmajor Enterprise Funds B-1 67
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets -Nonmajor Enterprise Funds B-2 68
Combining Statement of Cash Flows -Nonmajor Enterprise Funds B-3 69-70
Combining Statement of Net Assets -Internal Service Funds C-1 71
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets (Deficit) -Internal Service Funds C-2 72
Combining Statement of Cash Flows -Internal Service Funds C-3 73
Combining Statement of Changes in Assets and Liabilities -Agency Funds D-1 74
CITY OF DUBUQUE, IOWA
Table of Contents
Table Page
STATISTICAL SECTION (Unaudited)
Statistical Section 75
Financial Trends
Net Assets by Component 1 76
Changes in Net Assets 2 77-78
Fund Balances of Governmental Funds 3 79
Changes in Fund Balances of Governmental Funds 4 80
Revenue Capacity
Taxable and Assessed Value of Property 5 81
Property Tax Rates -Direct and Overlapping Governments 6 82
Principal Property Taxpayers 7 83
Property Tax Levies and Collections 8 84
Debt Capacity
Ratios of Outstanding Debt by Type 9 85
Ratios of General Bonded Debt Outstanding 10 86
Direct and Overlapping Governmental Activities Debt 11 87
Legal Debt Margin Information 12 88
Revenue Bond Coverage -Parking Bonds 13 89
Water and Sewer Receipt History 14 90
Water Meters by Rate Class 15 91
Largest Water and Sewer Customers 16 92
Demographic and Economic Information
Demographic and Economic Statistics 17 93
Principal Employers 18 94
Full-Time Equivalent City Government Employees by
Function/Department 19 95
Operating Information
Operating Indicators by Function/Program 20 96
Capital Asset Statistics by Function/Program 21 97
COMPLIANCE SECTION
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 98-99
Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with
OMB Circular A-133 100-101
Schedule of Expenditures of Federal Awards 102-104
Notes to the Schedule of Expenditures of Federal Awards 105
Schedule of Findings and Questioned Costs 106-108
2
THE CITY OF DUBUQUE
Masterpiece on the Mississipip
Dubuque
All-American City
2007
December 16, 2008
Dubuque Finance Department
50 West 13th Street
Dubuque, Iowa 52001-4805
Office (563) 589-4133
Fax (563) 589-6689
TTY (563) 690-6678
financeQcityofdubuque. org
2007 www.cityofdubuque.org
Honorable Mayor, City Council Members, and
Citizens of the City of Dubuque
The Comprehensive Annual Financial Report (CAFR) of the City of Dubuque, Iowa, for the
fiscal year ended June 30, 2008, is hereby submitted as required by various state and federal
regulations. Responsibility for both the accuracy of the 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 of the various funds and activities
of the City. All disclosures necessary to enable the reader to gain an understanding of the City's
financial operations have been included.
State code requires an annual audit by independent certified public accountants or the State
Auditor. The accounting firm of Eide Bailly LLP conducted the audit for fiscal year 2008. 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 GoveNnments and Non-Profit
Organizations. Information related to this single audit, including the Schedule of Expenditures of
Federal 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 of the City of Dubuque, as well as its component unit. 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 of roads, 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 pollution control facility, stormwater system,
3
Service People Integrity Responsibility Innovation Teamwork
parking facilities, refuse collection, and public transportation. Also, the governing body is
financially accountable for the operations of the Dubuque Library Board, Airport Commission,
Civic Center Commission, Cable TV Commission, Transit Board, and the Park and Recreation
Commission. These activities are not legally separate entities, and therefore, are included in the
reporting entity.
This report includes the Dubuque Metropolitan Area Solid Waste Agency (DMASWA) as a
discretely presented component unit. The 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
DMASWA governing board and operates the landfill.
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 report of the independent auditors.
PROFILE OF THE GOVERNMENT
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, riverboat casino, a parrmutuel dog track with a casino and the National
Mississippi River Museum and Aquarium (a Smithsonian affiliate). Dubuque has a stable and
diversified business or economic base and is the major tri-state retail center. Employment growth
was strong throughout the year, as Dubuque ended the fiscal year with an unemployment rate of
approximately 3.54 percent. The City of Dubuque currently has a land area of 29.94 square miles,
and a census 2000 population of 57,686. 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.
The City of Dubuque is empowered to levy a property tax on real property located within the City
limits. The City has operated under acouncil-manager form of government since 1920.
Policymaking and legislative authorities are vested in the governing council, which consists of a
mayor and asix-member council. The governing council is responsible for, among other things,
setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the
City Manager, Corporation Counsel, and City Clerk. The City Manager is responsible for
overseeing the day-to-day operations of the government, making recommendations to the City
Council on the budget and other matters, appointing the heads of the government's departments,
and hiring employees. The council is elected on anon-partisan basis. Council members are
elected to four-year staggered terms with three council members elected every two years. The
mayor is elected to a four-year term. Four of the council members are elected within their
respective wards; the mayor and the two remaining council members are elected at large.
4
ECONOMIC CONDITION
Significant continued development in the Port of Dubuque has begun or is in final planning
stages. Projects include: a $32 million expansion by the National Mississippi River Museum and
Aquarium; an $80 million Diamond Jo Casino entertainment expansion; a $60 million Briggs/
Durrant mixed-use development project; an $8 million renovation of City-owned Dubuque Star
Brewery by a private developer for office, restaurant, and retail use (complete), and a new $20
million City parking ramp. The $32 million McGraw-Hill Higher Education office building and
the LEED-certified remodeling of the former Adams facility by Durrant were completed in
August 2007 and April 2008, respectively.
Development of the Dubuque Industrial Center West continues with several business expansions
underway, including: Kendall/Hunt Publishing (80,000 square foot distribution center); Art's
Way Manufacturing; National Dentex; Giese Manufacturing; Dubuque Screw Products; Hormel
Foods (340,000 square foot food processing plant); Medline Industries (67,100 square foot office
building); ITC Development; Vanguard Countertops (30,200 square foot fabrication building);
and Theisen Supply. Many of these projects were completed as of October 2008 with the
exceptions of Medline, Vanguard, and Hormel.
The Dubuque Technology Park on the south side of the City had three new facilities completed in
2007 which added 230 new jobs and $6,000,000 of capital investment (Kunkel, Bounds, and
Associates, Sedgwick CMS/Straka Johnson Architects, and Entegee Engineering).
Downtown development continues at a brisk pace with the following projects: the $7 million
expansion by Cottingham and Butler, which will add 90 new jobs and is scheduled to be
completed in October 2008; a $1.5 million restoration of the historic German Bank building was
completed in January of 2008; renovation- of the former Hartig Drug Stores fora $2.5 million
expansion of McGladrey & Pullen CPA's Dubuque Office was completed in late 2007, and the
renovation of the former Interstate Power Company headquarters is scheduled to be completed in
December 2008.
A $6.2 million renovation project at the Carnegie Stout Public Library is scheduled to begin in
early 2009.
Conversion of the former Dubuque Casket Factory, a $6 million project, was completed in spring
2007. The project included 36 apartments and offices for Crescent Community Health Center and
Project Concern, a Gronen Restoration project. The Washington Neighborhood revitalization
strategy includes more than $2 million public-private partnership in lending activities to promote
home ownership.
The City Council approved a Revitalization Strategy for the Warehouse District in August 2007.
The strategy defines six primary goals to be achieved in rehabilitating the area. The revitalization
is expected to amount to $200 million in investment from private and public sectors over the next
ten years. A master plan for the redevelopment of the district is expected to be completed by
early 2009.
5
Other major construction projects include completion of the new Athletic and Wellness Center at
Loras College in November 2007 and the University of Dubuque Chlapaty Recreation and
Wellness Center, which opened in the Fall of 2008. In September 2008, Loras College also
proposed construction of the 32 dwelling unit Oaks Housing project on the north side of the
campus. Walgreens has begun construction of a new store at the intersection of 20~' and Elm
Street and will serve as their third location in Dubuque. Additionally, Holiday Inn Express has
broken ground on a new hotel on Holliday Drive on the west side of town.
Construction has also begun on two new residential subdivisions. Pebble Cove #1 and #2,
located near the southwest corner of the Northwest Arterial and John F. Kennedy Road, will
provide 46 new building lots for single and two-family homes. English Ridge subdivision,
located east of the intersection of U.S. 20 and Stone Valley Drive, will create 45 single-family
lots. A third new subdivision named North Fork Trails is close to being approved. North Fork
Trails will provide 17 building lots for two-family homes and will incorporate sustainable land
management and building construction practices on an infill site located at the end of Keymont
Drive.
Demolition was recently completed on the former meat packing plant, opening 30 acres for
future retail development on the Highway 151 /61 corridor. Nearly all of the materials from the
former facility have been recycled.
The City continues to receive awards and recognition from a variety of sources including:
• 2008 Most Livable Small City in the U.S., by the U.S. Conference of Mayors;
• One of the 2008 & 2007 100 Best Communities for Young People, by America's Promise
Alliance for Youth;
• 2007 All-America City, by the National Civic League;
• Ranked 22nd among the "Top 25 Boomtowns" in the nation, by Inc. magazine in May
2007;
• 2006 Iowa Great Place, by the Iowa Department of Cultural Affairs Citizen Advisory
Board;
• Ranked 22°d for job growth among 387 U.S. cities between 2005 and October 2006, by
Moody's/Economy.com; and
• Ranked 18th in nation in 2008's "Best Small Places for Business and Careers", by
Forbes magazine.
The operation of an expanded land-base Diamond Jo Casino in December, 2008 may have a
negative impact on City revenue from Dubuque Greyhound Park and Casino. However, a plan to
address this impact was approved by the City Council as part of the FY 2009 budget process.
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.
6
The Dubuque Regional Airport inaugurated service from Northwest Airlines through their
Minneapolis, MN hub beginning in June 2008. This service is in addition to the regional jet
service from American Airlines through their Chicago hub. The land required to support the new
airline terminal as depicted in the FAA approved Airport Layout Plan has entered the eminent
domain phase and final disposition of the land should be resolved in 2009. This action will lead
to the funding and implementation of the planned airport expansion and upgrade.
The City continues to implement components of the $38 million Drainage Basin Master Plan.
The $4 million West 32°d Street Detention Basin Project and $32 million, Bee Branch Creek
Restoration Project have involved significant property acquisitions and engineering design to
date.
Additionally, the City has begun a comprehensive study to provide added capacity for traffic flow
and improved connectivity between the western growth areas and the downtown area. Currently
the US 20 Corridor serves as the single primary route for east-west travel in the City.
Beginning in 2006, the Dubuque City Council identified Green City Designation as one of its top
priorities. Since then, many initiatives have been underway to make Dubuque a more sustainable
community. The City is in the process of completing several projects that will help it achieve the
Council's goal. These include participation in the Sustainable Design Assessment Team
program, preparation of the Unified Development Code, completion of a green resources and
energy use profile, and a variety of neighborhood-based green initiatives.
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:
• Improved Connectivity: Transportation and Telecommunications
• Diverse, Strong Dubuque Economy
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Sustainable City
FINANCIAL INFORMATION
Internal Controls. City management is responsible for establishing and maintaining internal
controls to ensure that the assets of the government are protected from loss, theft, or misuse, and
to ensure that adequate accounting data is compiled to allow for the preparation of financial
statements in conformity with generally accepted accounting principles. The internal controls are
7
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.
As apart 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, 2008, provided no instances of
material weaknesses in internal control over compliance, or significant violations of applicable
laws,- regulations, contracts, and grants.
Budgeting Controls. In addition, the government maintains budgetary controls. The objective
of these budgetary controls is to ensure compliance with legal provisions embodied in the annual
appropriated budget approved by the City Council. All funds 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 $3,926,402 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. Accordingly, deposits were either covered by federal
depository insurance or collateralized. All collateral on uninsured deposits was held either by the
State Treasurer, the government, its agent, or a financial institution's trust department in the
government's name. All of the investments subject to risk categorization were classified in the
category of lowest credit risk as defined by the Governmental Accounting Standards Board. The
non-classified investments include mutual funds.
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 $450,000 for each accident is provided through self-
insurance. The accumulated reserve provision for such claims reflected a $119,142 deficit as of
8
June 30, 2008. Provision for three large claims were accrued at fiscal year end with funds to
cover payment available in next fiscal year. The City has also established aself-insurance plan
for medical, prescription drug, and short-term disability. The accumulated reserve provision for
such claims equaled $3,334,742 as of June 30, 2008. All self-insured health plans are certified as
actuarially sound and certificates of compliance have been filed with the State of Iowa.
Bond Rating. The rating for the City's outstanding general obligation bonded debt was
upgraded by Moody's Investors Service to "Aa2" from a previous rating of "Aa3" in September
2003. This upgrade was due in part to the City's sound financial position, anticipated growth of
the City's tax base, and low overall debt burden. The rating was continued for bonds issued since
2003.
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, 2007. This was the 20th 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. 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.
The Government Finance Officers Association of the United States and Canada (GFOA) 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, 2008. In addition we received the award for the fiscal
year ending June 30, 2009. 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 award is valid for a period of one year.
Acknowledgments. We compliment the staff of the Finance Department for their assistance in
preparing this report. We also commend the Mayor and City Council and all department and
division managers 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
9
CITY ~F aU BUQU E ORGAN IZATI~NAL CHART
City Attorney CITY COUNCIL City Clerk
Library
Assistant City Manager
Personnel Manager
Budget Director
Airport
Public Infarmatian Officer
CITY MANAGER Cable TV Geographic Information Systems
Neighborhood Development
Building Economic Emergency Finance Fire Heal#h Housing 8~ Human Information
Services Development Communications Department Department Services Community Rights Services
Department Department Department Development Department Department
Emergency Department
Parking System Management
Transit Division
Leisure Services
Department
Civic Center
Park
Recreation
0
Public Wvrks
Department
Pianning
Services
Department
Police Engineering Water
Department Department Department
Water Pollution
Control
Department
12107
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2008
CITY COUNCIL
Roy D. Buol
Richard W. Jones
David T. Resnick
Kevin J. Lynch
Karla A. Braig
Joyce E. Connors
Dirk N. Voetberg
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M Brumwell-Sahm
James A. O'Brien
Jeanne F. Schneider
DEPARTMENT MANAGERS
Robert A. Grierson
Therese H. Goodmann
Cynthia M. Steinhauser
Jenny M. Larson
Richard R. Russell
David J. Heiar
Kenneth J. TeKippe
E. Daniel Brown
Mary Rose Corrigan
David W. Harris, Jr.
Kelly R. Larson
Randall K Peck
Christine A. Kohlmann
Gil D. Spence
Susan A. Henricks
Donald J. Vogt
Laura B. Carstens
Kim B. Wadding
Gus N. Psihoyos
Robert M. Green
Jonathan R. Brown
Mayor
Council Member - At Large
Council Member - At Large
Council Member - 1St Ward
Council Member - 2nd Ward
Council Member - 3rd Ward
Council Member - 4tn Ward
City Manager
City Attorney
Assistant City Attorney
Assistant City Attorney
City Clerk
Airport Manager
Assistant City Manager
Assistant City Manager
Budget Director
Building Services Manager
Economic Development Director
Finance Director
Fire Chief
Health Services Manager
Housing and Community Development Manager
Human Rights Director
Personnel Manager
Information Services Manager
Leisure Services Manager
Library Director
Public Works Director
Planning Services Manager
Police Chief
Public Works Director
Water Department Manager
Water Pollution Control Plant Manager
11
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, 2007
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose c.,...t.a~hensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
12
FINANCIAL SECTION
CITY OF DUBUQUE, IOWA
~,,""
,~ -
INDEPENDENT AUDITOR'S REPORT
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Dubuque, Iowa, (the City) as of and for the year ended June 30, 2008, which
collectively comprise the City's basic financial statements as listed in the table of contents. These
financial statements are the responsibility of the management of the City of Dubuque, Iowa. Our
responsibility is to express opinions on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and the significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe that our audit provides a reasonable basis for our opinions.
In our opinion, 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 discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of
Dubuque, Iowa, as of June 30, 2008, and the respective changes in financial position and, where
applicable, cash flows thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 16,
2008, on our consideration of the City's internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is 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 and should be considered in assessing the results of our
audit.
~..w~ ~ . ~.~~~ ~ ~~9 ..~a ~~~ i Q k ° ° . ~ ~~ ~~~. _
~,,,~ ,oi~~,i ~v~., ~P~~. n ~¢~~ ~ QF~ukar~~ge~~, I~~w~i ~[~~k~1~ ~.~~':~ ~~ L ` i ',`..:~,5t~.1 T'~U 1 Fc ::r i'ri.~'~ ~ ~'~~
The management's discussion and analysis and budgetary comparison information, listed in the table of
contents, are not a required part of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements of the City of Dubuque, Iowa. 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 basic 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 basic financial statements of the City of
Dubuque, Iowa. The combining nonmajor fund financial statements and the schedule of expenditures of
federal awards have been subjected to the auditing procedures applied in the audit of the basic financial
statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial
statements taken 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 express no
opinion on them.
~~~~
Dubuque, Iowa
December 16, 2008
14
CITY OF DUBUQUE, IOWA
MANAGEMENT' S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2008
This section of the City of Dubuque annual financial report presents our discussion and
analysis of the City's financial performance during the fiscal year that ended on June 30,
2008. 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 assets of the City of Dubuque exceeded its liabilities at the close of the fiscal
year by $454,073,902 (net assets). This was an increase of $16,020,278 over net
assets at June 30, 2007. Unrestricted net assets at June 30, 2008 in the amount of
$30,300,647 may be used to meet the City's ongoing obligations to citizens and
creditors.
• The expenses of the general fund exceeded revenues by $2,151,941.
• The ending general fund balance was $19,681,841.
• Within the City's business-type activities, revenues exceeded expenses and
transfers by $3,719,136.
• For the year, the revenues of the City's governmental activities exceeded
expenses and transfers by $12,301,142.
• The City's debt increased by $22,037,072 due to issuance of new debt exceeding
principal payments.
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 assets presents information on all of the City's assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or
decreases in net assets 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
15
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 assets
changed during the most recent fiscal year. All changes in net assets 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 vacation leave.
The government-wide financial statements include not only the City itself (known as the
primary government), but also one other legally separate entity, the Dubuque
Metropolitan Area Solid Waste Agency, for which the City of Dubuque is considered
financially accountable. Financial information for the Agency is reported separately from
the financial information presented for the primary government. The Dubuque
Metropolitan Area Solid Waste Agency issues separate financial statements.
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 the City in this category include water, sewer, storm water, refuse,
parking, transit and 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
16
funds with similar information presented for governmental activities in the government-
wide financial statements. By doing so, readers may better understand the long-term
impact of the City's near term financial decisions. Both the governmental fund balance
sheet and governmental fund statement of revenues, expenditures, and changes in fund
balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains four individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund,
employee benefits fund, street construction fund, and community development 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, refuse utilities and for transit, parking, 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 general/engineering service, garage service,
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.
17
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.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets. As noted earlier, net assets may serve as a useful indicator of a government's
financial position when observed over time. In the case of the City, assets exceeded
liabilities by $454,073,902 at the close of the most recent fiscal year.
The largest part of the City's net assets (86.2%) reflects its 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 ASSETS
Governmental Activities Business-type Activities Total
2008 2007 2008 2007 2008 2007
Current and other assets $ 97,492,862 $ 76,852,268 $ 13,705,545 $ 16,342,247 $ 111,198,407 $ 93,194,515
Capital assets 325,611,587 310,552,621 107,186,474 100,384,974 432,798,061 410,937,595
Total assets 423,104,449 387,404,889 120,892,019 116,727,221 543,996,468 504,132,110
Long-term liabilities 50,451,804 29,187,528 12,817,868 11,897,067 63,269,672 41,084,595
Other liabilities 25,550,629 23,416,487 1,102,265 1,577,404 26,652,894 24,993,891
Total liabilities 76,002,433 52,604,015 13,920,133 13,474,471 89,922,566 66,078,486
Net assets:
Invested in capital assets,
net of related debt 296,143,451 288,978,975 95,104,575 91,483,532 391,248,026 380,462,507
Restricted 31,970,724 23,900,328 554,505 554,318 32,525,229 24,454,646
Unrestricted 18,987,841 21,921,571 11,312,806 11,214,900 30,300,647 33,136,471
Total net assets $ 347,102,016 $ 334,800,874 $ 106,971,886 $ 103,252,750 $ 454,073,902 $ 438,053,624
A portion of the City's net assets (72%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of net assets (6.7%) maybe
used to meet the City's ongoing obligations to citizens and creditors.
At the close of fiscal years 2008 and 2007, the City is able to report positive balances in
all three categories of net assets, both for the government as a whole and separate
governmental and business-type activities.
Governmental activities. Governmental activities increased the net assets of the City by
$12,301,142 or 76.8% of the total increase in net assets in 2008 and $30,212,972 or
97.9% of the total increase in net assets in 2007. Taxes are the largest source of
governmental revenues with property taxes of $22,744,563 in 2008. Other governmental
revenues included gaming of $15,346,468, local option sales taxes of $8,020,889,
hotel/motel tax of $1,622,455, and $9,643,066 of charges for services.
18
Governmental expenses during 2008 totaled $67,814,257. The largest programs were
public safety of $16,966,210, public works of $18,847,068, community and economic
development of $11,961,584 and culture and recreation of $10,857,409. The State of
Iowa changed the reporting requirements for expenses from four to eight programs
effective with the 2003 fiscal year.
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET ASSETS
Governmental Activities Business-type Activities Total
2008 2007 2008 2007 2008 2007
Revenues:
Program revenues
Charges for services $ 9,643,066 $ 10,023,217 $ 17,176,090 $ 16,090,766 $ 26,819,156 $ 26,113,983
Operating grants and contributions 11,709,123 11,641,904 1,209,636 1,167,344 12,918,759 12,809,248
Capital grants and contributions 8,032,602 23,741,282 2,830,263 1,670,874 10,862,865 25,412,156
General revenues
Property taxes 22,744,563 21,656,908 - - 22,744,563 21,656,908
Local option sales tax 8,020,889 7,817,403 - - 8,020,889 7,817,403
HoteUmotel tax 1,622,455 1,569,743 - - 1,622,455 1,569,743
Utility franchise fees 1,516,123 1,492,920 - - 1,516,123 1,492,920
Gaming 15,346,468 15,556,551 - - 15,346,468 15,556,551
Unrestricted investment earnings 2,741,499 1,870,403 630,049 796,636 3,371,548 2,667,039
Gain on sale of capital assets 92,525 - 11,736 - 104,261 -
Other 898,241 586,931 - - 898,241 586,931
Total revenues 82,367,554 95,957,262 21,857,774 19,725,620 104,225,328 115,682,882
Expenses:
Public safety 16,966,210 20,326,724 - - 16,966,210 20,326,724
Public works 18,847,068 16,506,560 - - 18,847,068 16,506,560
Health and social services 800,566 759,367 - - 800,566 759,367
Culture and recreation 10,857,409 9,837,299 - - 10,857,409 9,837,299
Community and economic
development 11,961,584 11,965,805 - - 11,961,584 11,965,805
General government 5,804,003 4,940,154 - - 5,804,003 4,940,154
Interest on long-term debt 2,577,417 1,400,748 - - 2,577,417 1,400,748
Sewage disposal works - - 6,141,524 5,814,076 6,141,524 5,814,076
Water utility - - 4,814,692 4,780,063 4,814,692 4,780,063
Stormwater utility - - 1,706,735 1,198,675 1,706,735 1,198,675
Parking facilities - - 2,173,110 1,611,447 2,173,110 1,611,447
America's River Project - - 126,699 434,667 126,699 434,667
Refuse collection - - 2,724,050 2,496,018 2,724,050 2,496,018
Transit system - - 2,703,983 2,760,459 2,703,983 2,760,459
Total expenses 67,814,257 65,736,657 20,390,793 19,095,405 88,205,050 84,832,062
Increase in net assets before
transfers 14,553,297 30,220,605 1,466,981 630,215 16,020,278 30,850,820
Transfers (2,252,155) (7,633) 2,252,155 7,633 - -
Increase (decrease) in net assets 12,301,142 30,212,972 3,719,136 637,848 16,020,278 30,850,820
Net assets, beginning 334,800,874 304,587,902 103,252,750 102,614,902 438,053,624 407,202,804
Net assets, ending $ 347,102,016 $ 334,800,874 $ 106,971,886 $ 103,252,750 $ 454,073,902 $ 438,053,624
19
Business-type activities. Business type activities increased net assets by $3,719,136 while
the City's net assets increased by $16,020,278 at June 30, 2008.
FINANCIAL ANALYSIS OF THE GOVERNMENT' S FUNDS
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. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
The City's governmental funds reported a combined fund balance of $66,910,216 at June
30, 2008. A portion of the fund balance is reserved and not available for new spending
because it has already been committed for encumbrances, endowments, debt service and
state statute restricted purposes.
The general fund's fund balance reserve goal is 10% of budgeted annual expenditures.
Our balance is slightly higher than the goal at year-end.
The unreserved fund balance of special revenue employee benefits fund increased by
$10,242 to $117,274. The unreserved fund balance of special revenue community
development decreased by $594,753 to $2,158,078.
Proprietary funds. The City's proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
The combined net assets of the enterprise funds at June 30, 2008 totaled $106,971,886 of
which 10.6% ($11,312,806) is unrestricted. The net assets of the internal service funds
are $3,418,227 a $593,727 increase from the 2007 total net assets. The unrestricted net
assets of the internal service funds are $3,366,107 (98.5%). The increase in internal
service funds is primarily due to favorable results in the employee health insurance
reserve fund.
The sewer disposal works had an increase in net assets of $353,183 for total net assets of
$39,445,257 at June 30, 2008. The water utility had an increase in net assets of $500,745
for total net assets of $24,624,242. The storm water utility had an increase in net assets of
$1,943,316 for total net assets of $24,033,641. The parking facilities had an increase in
net assets of $1,033,643 for total net assets of $15,163,116. The America's River Project
had an increase in net assets of $106,667 for total net assets deficit of $30,947.
20
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2007-2008 budget. The first amendment was
passed in October 2007 to reflect operating and capital budget carryovers (continuing
appropriation authority) from 2007 and amends the FY 2008 budget for operating and
capital City Council actions since the beginning of the fiscal year. The second budget
amendment was passed in May 2008 to reflect City Council actions since the first budget
amendment and amendments to add additional appropriation authority due to increased
revenues.
The final budget for total receipts increased by $30,027,918. 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 $65,175,509 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 receipts were $29,154,1871ess than the final amended budget, and expenditures
were $68,475,3191ess than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business-
type activities as of June 30, 2008, amounts to $432,798,061 (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 the note 5 to the
financial statements in this report.
CAPITAL ASSETS (net of accumulated depreciation)
Governmental Activities Business-type Activities Total
2008 2007 2008 2007 2008 2007
Land $ 57,171,699 $ 51,912,748 $ 3,364,857 $ 3,364,857 $ 60,536,556 $ 55,277,605
Buildings 106,145,708 101,663,541 61,828,335 60,964,620 167,974,043 162,628,161
Improvements other than buildings 15,245,857 15,028,954 62,082,852 55,727,107 77,328,709 70,756,061
Machinery and equipment 28,679,138 25,636,645 49,217,914 47,778,284 77,897,052 73,414,929
Infrastructure 187,542,063 178,774,083 - - 187,542,063 178,774,083
Construction in progress 14,044,930 16,067,956 6,390,937 5,298,854 20,435,867 21,366,810
Accumulated depreciation (83,217,808) (78,531,306) (75,698,421) (72,748,748) (158,916,229) (151,280,054)
$ 325,611,587 $ 310,552,621 $ 107,186,474 $ 100,384,974 $ 432,798,061 $ 410,937,595
Major expenditures during 2007-2008 were for Historic Federal Building renovations;
Bee Branch Storm Water Project, multifunction copiers, parking lot at City Hall, Port of
Dubuque Parking Ramp, Cedar Street Lift Station, and streets, water and sewer projects.
21
Long-term debt At year end the City had $60,398,027 of debt outstanding. This is an
increase of $22,037,072 from June 30, 2007. New debt issued during the current year
included general obligation bonds for sewer improvements of $1,055,000 and refinancing
$2,965,000 of existing debt at more favorable rates. The City's bond rating was Aa2 for
these issues. $23,025,000 of urban renewal tax increment revenue bonds were issued for
Port of Dubuque parking ramp. The City also received disbursements from the State
Revolving Fund construction loan program of $453,336 for drinking water, $19,113
storm water and $56,538 sewer projects. An additional $83,989 disbursement was taken
from the SRF planning loans program for sewer project.
The City continues to operate well 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 $148,824,003. With
general obligation debt of $60,484,713 we are utilizing 40.64% of this limit. Additional
information on the City's long-term debt can be found in note 6 of this report.
ECONOMIC FACTORS
The City's unemployment rate ended the fiscal year at 3.8%, a .1% increase from the
prior year, and is slightly lower than the State of Iowa rate of 4.0 %, and lower than the
5.5% national rate.
The City continues to enjoy growth in assessed valuation of taxable property net of
exemptions (2.4% for total of $1,814,365,000). In fiscal year 2008, the minimum
monthly refuse rate increased $0.43 to $9.89, sewer rates increased 5%, water rates
increased 5% and the storm water monthly fee increased $1.00 to $3.25 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.
22
BASIC FINANCIAL STATEMENTS
CITY OF DUBUQUE, IOWA
CITY OF DUBUQUE, IOWA EXHIBIT 1
STATEMENT OF NET ASSETS
JUNE 30, 2008
Component
Unit
Dubuque
Primary Government Metropolitan
Governmental Business-type Area Solid
Activities Activities Total Waste Agency
ASSETS
CURRENT ASSETS
Cashandpooledcashinvestments $ 39,784,125 $ 9,915,602 $ 49,699,727 $ 7,168,906
Receivables
Property tax
Delinquent 237,828 - 237,828 -
Succeedingyear 18,963,071 - 18,963,071 -
Accounts and other 2,146,076 2,463,612 4,609,688 250,525
Special assessments 328,204 - 328,204 -
Accrnedinterest 302,357 62,102 364,459 163,657
Notes 610,311 - 610,311 -
Intergovernmental 3,238,706 976,184 4,214,890 -
Internalbalances 735,095 (735,095) - -
Inventories 283,608 463,296 746,904 -
Prepaid items 33,757 5,339 39,096 55,286
Total Current Assets 66,663,138 13,151,040 79,814,178 7,638,374
NONCURRENT ASSETS
Temporarily restricted cash and pooled
cash investments 20,610,313 554,505 21,164,818 3,625,224
Permanently restricted cash and pooled
cash investments 88,061 - 88,061 -
Notes receivable 10,131,350 - 10,131,350 -
Capital assets
Land 57,171,699 3,364,857 60,536,556 1,586,092
Buildings 106,145,708 61,828,335 167,974,043 65,922
Improvements other than buildings 15,245,857 62,082,852 77,328,709 7,468,652
Machinery and equipment 28,679,138 49,217,914 77,897,052 2,361,686
Infrastructure 187,542,063 - 187,542,063 -
Constrnctioninprogress 14,044,930 6,390,937 20,435,867 -
Accumulated depreciation (83,217,808) (75,698,421) (158,916,229) (7,085,925)
Total Noncurrent Assets 356,441,311 107,740,979 464,182,290 8,021,651
Total Assets 423,104,449 120,892,019 543,996,468 15,660,025
(continued)
23
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
JUNE 30, 2008
LIABILITIES
CURRENT LIABII,ITIES
Accounts payable
Accrued payroll
Notes payable
General obligation bonds payable
Revenue bonds payable
Tax increment financing bonds payable
Accrued compensated absences
Accrned interest payable
Intergovernmental payable
Unearned revenue
Succeeding year property tax
Other
Total Current Liabilities
NONCURRENT LIABILITIES
Notes payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and postclosure care
Tax increment financing bonds payable
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for/by
Bond ordinance
Debt service
Employee benefits
Community development
Streets
Capital projects
Franchise agreement
Endowments
Expendable
Nonexpendable
Other
State statute
Minority interest
Unrestricted
Total Net Assets
EXHIBIT 1
(continued)
Component
Unit
Dubuque
Primary Government Metropolitan
Governmental Business-type Area Solid
Activities Activities Total Waste Agency
$ 4,694,165 $ 847,782 $ 5,541,947 $ 93,415
945,379 208,719 1,154,098 27,620
114,873 22,070 136,943 -
1,305,000 700,000 2,005,000 -
- 240,000 240,000 -
524,727 - 524,727 -
2,540,145 331,500 2,871,645 63,649
237,895 39,347 277,242 -
3,256 - 3,256 69,545
18,963,071 - 18,963,071 -
706,863 6,417 713,280 -
30,035,374 2,395,835 32,431,209 254,229
1,164,763 589,927 1,754,690 -
20,447, 907 10,684,371 31,132,278 -
- 250,000 250,000 -
- - - 3,136,395
24,354,389 - 24,354,389 -
45,967,059 11,524,298 57,491,357 3,136,395
76,002,433 13,920,133 89,922,566 3,390,624
296,143,451 95,104,575 391,248,026 4,396,427
5,114,998 554,505 5,669,503 -
3,155 - 3,155 -
117,274 - 117,274 -
13,583,759 - 13,583,759 -
2,430,580 - 2,430,580 -
8,868,704 - 8,868,704 -
401,434 - 401,434 -
33,958 - 33,958 -
88,061 - 88,061 -
1,328,801 - 1,328,801 -
- - - 239,146
- - - 1,732,879
18,987,841 11,312,806 30,300,647 5,900,949
$ 347,102,016 $ 106,971,886 $ 454,073,902 $ 12,269,401
See notes to financial statements. 24
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
Functions/Programs
Primary government
Governmental activities
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long-term debt
Total governmental activities
Business-type activities
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Total business-type activities
Total primary government
Component unit
Dubuque Metropolitan Area Solid Waste Agency
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 16,966,210 $ 2,088,723 $ 625,105 $ 394,081
18,847,068 4,061,883 4,962,158 7,100,463
800,566 112,580 65,156 -
10,857,409 2,109,571 129,409 373,671
11,961,584 343,881 5,927,295 123,574
5,804,003 926,428 - 40,813
2,577,417 - - -
67,814,257 9,643,066 11,709,123 8,032,602
6,141,524 5,484,079 - 799,394
4,814,692 4,875,530 - 368,410
1,706,735 1,766,334 - 927,344
2,173,110 2,141,607 - 698,577
126,699 2,140 - 36,538
2,724,050 2,710,583 13,078 -
2,703,983 195,817 1,196,558 -
20,390,793 17,176,090 1,209,636 2,830,263
$ 88,205,050 $ 26,819,156 $ 12,918,759 $ 10,862,865
$ 3,501,071 $ 3,213,432 $ 29,294 $
General revenues
Property taxes
Local option sales tax
HoteUmotel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Gain on sale of capital assets
Other
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
See notes to financial statements.
EXHIBIT 2
Net (Expense) Revenue and
Changes in Net Assets
Primary Government
Governmental Business-type
Activities Activities Total
Component Unit
Dubuque
Metropolitan
Area Solid
Waste Agency
$ (13,858,301) $ - $ (13,858,301) $ -
(2,722,564) - (2,722,564) -
(622,830) - (622,830) -
(8,244,758) - (8,244,758) -
(5,566,834) - (5,566,834) -
(4,836,762) - (4,836,762) -
(2,577,417) - (2,577,417) -
(38,429,466) - (38,429,466) -
- 141,949 141,949 -
- 429,248 429,248 -
- 986,943 986,943 -
- 667,074 667,074 -
- (88,021) (88,021) -
- (389) (389) -
- (1,311,608) (1,311,608) -
- 825,196 825,196 -
(38,429,466) 825,196 (37,604,270) -
- - - (258,345)
22,744,563 - 22,744,563 -
8,020,889 - 8,020,889 -
1,622,455 - 1,622,455 -
1,516,123 - 1,516,123 -
15,346,468 - 15,346,468 -
2,741,499 630,049 3,371,548 462,185
92,525 11,736 104,261 -
898,241 - 898,241 -
(2,252,155) 2,252,155 - -
50,730,608 2,893,940 53,624,548 462,185
12,301,142 3,719,136 16,020,278 203,840
334,800,874 103,252,750 438,053,624 12,065,561
$ 347,102,016 $ 106,971,886 $ 454,073,902 $ 12,269,401
25
CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2008
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Due from other funds
Inventories
Advances to other funds
Prepaid items
Restricted cash and pooled cash
investments
Total Assets
LIABILITIES AND FUND
BALANCES
LIABILITIES
Accounts payable $ 1,068,481 $ - $ 82,685 $
Accrued payroll 795,521 - 23,169
Intergovernmental payable - - -
Deferred revenue
Succeeding year property tax 16,478,894 2,094,685 -
Other 942,539 3,466 54,879
Total Liabilities 19,285,435 2,098,151 160,733
FUND BALANCES
Reserved for/by
Encumbrances 1,445,442 - 167,591
Long-term notes receivable - - 10,129,575
Advances 254,383 - -
Bond ordinance - - -
Debt service - - -
Franchise agreement - - -
Endowments - - -
Unreserved
Designated for
Future equipment and capital
maintenance 6,635,215 - -
Future cash flow 3,822,769 - -
Undesignated reported in
General fund 7,524,032 - -
Special revenue funds - 117,274 2,158,078
Capital projects funds - - -
Permanentfunds - - -
Total Fund Balances 19,681,841 117,274 12,455,244
Total Liabilities and Fund
Balances $ 38,967,276 $ 2,215,425 $ 12,615,977 $
See notes to financial statements
EXHIBIT 3
Special Revenue Capital Projects Other
Employee Community Street General Governmental
General Benefits Development Construction Construction Funds Total
$ 18,014,113 $ 88,657 $ 1,558,929 $ 1,871,105 $ 4,876,570 $ 8,502,503 $ 34,911,877
200,727 32,083 - - - 5,018 237,828
16,478,894 2,094,685 - - - 389,492 18,963,071
1,913,144 - - 95,734 - 16,506 2,025,384
- - - - - 328,204 328,204
118,131 - 42,420 14,535 1,146 100,580 276,812
- - 10,739,186 - - 2,475 10,741,661
1,263,775 - 259,112 1,045,333 - 670,486 3,238,706
480,712 - - - - - 480,712
225,970 - - - - - 225,970
254,383 - - - - - 254,383
17,427 - 16,330 - - - 33,757
- - - - 15,441,355 5,257,019 20,698,374
$ 38,967,276 $ 2,215,425 $ 12,615,977 $ 3,026,707 $ 20,319,071 $ 15,272,283 $ 92,416,739
369,417 $ 1,246,816 $ 259,303 $ 3,026,702
- - 84,135 902,825
- - 3,256 3,256
- - 389,492 18,963,071
723,730 - 886,055 2,610,669
1,093,147 1,246,816 1,622,241 25,506,523
1,245,241 14,457,176 678,134 17,993,584
- - 1,775 10,131,350
- - - 254,383
- - 5,114,998 5,114,998
- - 3,155 3,155
- - 1,332 1,332
- - 88,061 88,061
- - - 6,635,215
- - - 3,822,769
- - - 7,524,032
- - 5,156,579 7,431,931
688,319 4,615,079 2,572,050 7,875,448
- - 33,958 33,958
1,933,560 19,072,255 13,650,042 66,910,216
3,026,707 $ 20,319,071 $ 15,272,283 $ 92,416,739
Lb
CITY OF DUBUQUE, IDWA EXHIBIT 3-1
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2008
Total fund balances -governmental funds $ 66,910,216
Amounts reported for the governmental activities in the statement of
net assets 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 $ 408,727,361
Accumulated depreciation (83,167,894)
325,559,467
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 o£
Property tax 30,594
Special assessments 294,581
Other 1,578,630
1,903,805
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 assets. 3,418,227
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 (21,752,907)
Tax increment financing bonds (24,879,116)
Notes payable (1,279,636)
Accrued interest (237,895)
Compensated absences (2,540,145)
(50,689,699)
Net assets of governmental activities $ 347,102,016
See notes to financial statements. 27
CITY OF DUBUQUE, IDWA EXHIBIT 4
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Special Revenue Capital Projects Other
Employee Community Street General Governmental
General Benefits Development Construction Construction Funds Total
REVENUES
Taxes $ 22,568,857 $ 2,453,174 $ - $ 2,406,267 $ - $ 6,470,394 $ 33,898,692
Special assessments - - - - - 177,585 177,585
Licenses and permits 1,153,429 - - - - - 1,153,429
Intergovernmental 1,578,336 - 1,556,808 1,776,163 - 9,345,216 14,256,523
Charges for services 7,648,503 - - - - 184,648 7,833,151
Fines and forfeits 188,603 - - - - - 188,603
Investment earnings 1,251,166 - 147,449 49,502 766,303 517,533 2,731,953
Contributions 239,254 - - 255,500 5,544,825 94,423 6,134,002
Gaming 15,346,468 - - - - - 15,346,468
Miscellaneous 587,653 - 18,342 72 - 663,309 1,269,376
Total Revenues 50,562,269 2,453,174 1,722,599 4,487,504 6,311,128 17,453,108 82,989,782
EXPENDITURES
Current
Public safety 21,444,125 - - - - 98,536 21,542,661
Public works 10,494,051 - 67,240 - - 5,769,816 16,331,107
Health and social services 684,712 - 85,047 - - 27,885 797,644
Culture and recreation 10,071,036 - 110,366 - - 96,385 10,277,787
Community and economic
development 4,296,730 - 2,015,661 - - 5,535,121 11,847,512
General government 5,670,049 337 - - - 640,553 6,310,939
Debt service 53,507 - - - - 4,115,299 4,168,806
Capital projects - - - 3,599,493 10,088,188 1,664,167 15,351,848
Total Expenditures 52,714,210 337 2,278,314 3,599,493 10,088,188 17,947,762 86,628,304
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES (2,151,941) 2,452,837 (555,715) 888,011 (3,777,060) (494,654) (3,638,522)
OTHER FINANCING
SOURCES (USES)
Issuance of debt - - - - 23,025,000 58,696 23,083,696
Discount onbonds - - - - (266,158) - (266,158)
Issuance of refunding bonds - - - - - 2,965,000 2,965,000
Payment to refunded bond
escrow agent - - - - - (2,875,000) (2,875,000)
Transfers in 3,810,467 - 377,213 1,059,041 660,806 8,894,062 14,801,589
Transfers out (4,373,258) (2,442,595) (123,226) (699,523) (7,038,997) (3,507,510) (18,185,109)
Sale of capital assets 113,639 - - - 2,635,276 152,275 2,901,190
Total Other Financing
Sources (Uses) (449,152) (2,442,595) 253,987 359,518 19,015,927 5,687,523 22,425,208
NET CHANGE IN FUND
BALANCES (2,601,093) 10,242 (301,728) 1,247,529 15,238,867 5,192,869 18,786,686
FUND BALANCES,
BEGINNING 22,282,934 107,032 12,756,972 686,031 3,833,388 8,457,173 48,123,530
FUND BALANCES, ENDING $ 19,681,841 $ 117,274 $ 12,455,244 $ 1,933,560 $ 19,072,255 $ 13,650,042 $ 66,910,216
See notes to financial statements. 28
CITY OF DUBUQUE, IDWA EXHIBIT 4-1
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT
OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2008
Net change in fund balances -total governmental funds $ 18,786,686
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 $ 22,984,500
Transfers of capital assets from enterprise funds 1,477,783
Transfers of capital assets to enterprise funds (339,982)
Depreciation expense (6,264,027)
17,858,274
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 assets differs from the change in fund balances by the
book value of the asset being disposed. (2,808,665)
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 revenues increased (decreased) by these
amounts this year:
Property tax 1,887
Special assessments (116,741)
Other (599,898)
Debt proceeds provide current fmancial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net assets.
Repayment of debt principal is an expenditure in the governmental funds,
but it reduces long-term liabilities in the statement of net assets and does not
affect the statement of activities. Also, governmental funds report the effect of
issuance discounts when debt is first issued, whereas these amounts are deferred
and amortized in the statement of activities.
Debt proceeds (26,048,696)
Discounts on bonds issued 266,158
Debt repayments 4,637,374
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:
(714,752)
(21,145,164)
Increase in accrued interest (149,852)
Amortization of bond discount (21,133)
Increase in compensated absences (97,979)
Total additional expenses (268,964)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue of the internal service funds is
reported with governmental activities. 593,727
Change in net assets of governmental activities $ 12,301,142
See notes to financial statements. 29
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
Business-type Activities -
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Inventories
Prepaid items
Total Current Assets
NONCURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 5,001,756 $ 788,310 $ 2,753,958 $ 626,425
1,080,432 784,220 227,581 67,922
27,589 6,551 14,903 8,772
- 445,921 - -
5,339 - - -
6,115,116 2,025,002 2,996,442 703,119
- - - 554,505
167,855 37,449 1,827,344 1,296,209
31,590,936 8,214,651 - 20,135,184
32,309,642 520,295 27,318,976 1,933,939
6,908,215 34,957,465 925,265 1,184,471
858,508 378,995 5,137,779 14,910
(36,938,914) (18,840,008) (7,941,292) (7,228,750)
34,896,242 25,268,847 27,268,072 17,335,963
34,896,242 25,268,847 27,268,072 17,890,468
41,011,358 27,293,849 30,264,514 18,593,587
EXHIBIT 5
Enterprise Funds
America's Other
River Enterprise
Project Funds
Total
Governmental
Activities-
Internal
Service Funds
$ - $ 745,153 $ 9,915,602 $ 4,872,248
- 303,457 2,463,612 120,692
- 4,287 62,102 25,545
- 976,184 976,184 -
- 17,375 463,296 57,638
- - 5,339 -
- 2,046,456 13,886,135 5,076,123
- - 554,505
- 36,000 3,364,857 -
- 1,887,564 61,828,335 -
- - 62,082,852 -
- 5,242,498 49,217,914 102,034
745 - 6,390,937 -
- (4,749,457) (75,698,421) (49,914)
745 2,416,605 107,186,474 52,120
745 2,416,605 107,740,979 52,120
745 4,463,061 121,627,114 5,128,243
(continued)
30
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2008
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Accrued interest payable
Due to other funds
Unearned revenue
Advances from other funds
Total Current Liabilities
NONCURRENT LIABILITIES
General obligation bonds payable (net of
discount of $78,593 and deferred amount on
refunding of $107,036)
Revenue bonds payable
Capital loan notes payable
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted by bond ordinance
Unrestricted
Total Net Assets (Deficit)
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 232,845 $ 196,946 $ 314,533 $ 20,335
47,507 54,222 233 18,978
100,000 155,000 270,000 175,000
- - - 240,000
5,032 16,348 690 -
92,911 106,230 4,173 21,624
3,098 5,218 20,041 10,990
- - - 6,417
- 254,383 - -
481,393 788,347 609,670 493,344
950,212 1,444,272 5,602,760 2,687,127
- - - 250,000
134,496 436,988 18,443 -
1,084,708 1,881,260 5,621,203 2,937,127
1,566,101 2,669,607 6,230,873 3,430,471
33,706,502 23,216,239 21,780,648 13,983,836
- - - 554,505
5,738,755 1,408,003 2,252,993 624,775
$ 39,445,257 $ 24,624,242 $ 24,033,641 $ 15,163,116
See notes to financial statements.
EXHIBIT 5
(continued)
Enterprise Funds
America's Other
River Enterprise
Project Funds
$ 31,692 $ 51,431 $
- 87,779
- 106,562
- 480,712
31,692 726,484
Total
Governmental
Activities-
Internal
Service Funds
847,782 $ 1,667,462
208,719 42,554
700,000 -
240,000 -
22,070 -
331,500 -
39,347 -
480,712 -
6,417 -
254,383 -
3,130,930 1,710,016
- - 10,684,371 -
- - 250,000 -
- - 589,927 -
- - 11,524,298 -
31,692 726,484 14,655,228 1,710,016
745 2,416,605 95,104,575 52,120
- - 554,505 -
(31,692) 1,319,972 11,312,806 3,366,107
$ (30,947) $ 3,736,577 $ 106,971,886 $ 3,418,227
31
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS (DEFICIT)
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Business-type Activities -
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings
Interest expense
Gain on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET ASSETS
NET ASSETS (DEFICIT), BEGINNING
NET ASSETS (DEFICIT), ENDING
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 5,444,622 $ 4,871,861 $ 1,764,959 $ 2,137,826
39,457 3,669 1,375 3,781
5,484,079 4,875,530 1,766,334 2,141,607
1,871,101 1,962,860 149,987 685,305
556,933 550,192 167 106,753
370,564 127,471 273 108,085
2,107,506 1,240,107 938,846 558,970
83,547 77,930 - 35,710
1,130,184 764,908 364,773 513,575
6,119,835 4,723,468 1,454,046 2,008,398
(635,756) 152,062 312,288 133,209
218,444 56,972 239,773 82,432
(21,689) (91,224) (252,689) (164,712)
4,491 147 - -
201,246 (34,105) (12,916) (82,280)
(434,510) 117,957 299,372 50,929
799,394 368,410 927,344 1,038,559
121,449 21,953 850,732 -
(133,150) (7,575) (134,132) (55,845)
353,183 500,745 1,943,316 1,033,643
39,092,074 24,123,497 22,090,325 14,129,473
$ 39,445,257 $ 24,624,242 $ 24,033,641 $ 15,163,116
See notes to financial statements.
EXHIBIT 6
Enterprise Funds Governmental
America's Other Activities-
River Enterprise Internal
Project Funds Total Service Funds
$ - $ 2,904,958 $ 17,124,226 $ 10,262,147
2,140 1,442 51,864 240,694
2,140 2,906,400 17,176,090 10,502,841
- 2,933,883 7,603,136 2,247,384
- 75,425 1,289,470 24,009
- 756,212 1,362,605 28,123
126,699 1,167,421 6,139,549 7,278,350
- 71,991 269,178 536,356
- 423,101 3,196,541 5,671
126,699 5,428,033 19,860,479 10,119,893
(124,559) (2,521,633) (2,684,389) 382,948
36,538 1,209,636 1,246,174 -
- 32,428 630,049 214,110
- - (530,314) -
- 7,098 11,736 3,105
36,538 1,249,162 1,357,645 217,215
(88,021) (1,272,471) (1,326,744) 600,163
- - 3,133,707 -
1,766,447 1,070,053 3,830,634 -
(1,571,759) (16,000) (1,918,461) (6,436)
106,667 (218,418) 3,719,136 593,727
(137,614) 3,954,995 103,252,750 2,824,500
$ (30,947) $ 3,736,577 $ 106,971,886 $ 3,418,227
32
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Proceeds from interfund balances
Payment of interfund balances
Intergovernmental grant proceeds
NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Acquisition and construction of capital assets
Proceeds from issuance of debt
Payment of debt
Interest paid
Intergovernmental grant proceeds
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 5,465,016 $ 4,883,309 $ 1,690,560 $ 2,127,773
(3,727,758) (1,932,906) (692,152) (980,112)
(1,875,699) (1,942,036) (149,506) (690,810)
39,457 3,669 1,375 3,781
(98,984) 1,012,036 850,277 460,632
121,449 21,953 850,732 -
(133,150) (7,575) (134,132) (55,845)
- (43,204) - -
(11,701) (28,826) 716,600 (55,845)
4,491 147 - -
(1,492,489) (1,460,754) (3,484,749) (843,440)
1,188,620 453,336 19,133 -
- (150,000) (260,000) (395,000)
(17,471) (91,554) (249,305) (160,550)
(316,849) (1,248,825) (3,974,921) (1,398,990)
243,513 66,257 248,275 95,836
~184,021~ ~199,3s8~ ~2,1s9,769~ ~898,367~
5,185,777 987,668 4,913,727 2,079,297
e c nni ~cti e X44 y i n e ~ ~c~ oc4 e i i Qn o~n
EXHIBIT 7
Enterprise Funds Governmental
America's Other Activities-
River Enterprise Internal
Project Funds Total Service Funds
$ - $ 2,876,976 $ 17,043,634 $ 10,148,229
(126,699) (2,065,381) (9,525,008) (7,376,366)
- (2,867,367) (7,525,418) (2,272,492)
2,140 1,442 51,864 240,694
(124,559) (2,054,330) 45,072 740,065
1,766,447 1,070,053 3,830,634 -
(220,726) (16,000) (567,428) (6,436)
- 480,712 480,712 -
(500,722) - (543,926) (15,722)
- 270,324 270,324 -
1,044,999 1,805,089 3,470,316 (22,158)
- 7,098 11,736 3,105
~9s6,978~ ~28,000~ ~8,266,410~ ~ls,o28~
- - 1,661,089 -
- - ~8os,ooo~ -
- - ~s 18,880 -
36,538 - 36,538 -
(920,440) (20,902) (7,880,927) (11,923)
- 34,008 687,889 223,050
- (236,135) (3,677,650) 929,034
- 981,288 14,147,757 3,943,214
$ - $ 745,153 $ 10,470,107 $ 4,872,248
(continued)
33
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
RECONCII,IATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income (loss) $ (635,756) $ 152,062 $ 312,288 $ 133,209
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities
Depreciation
Change in assets and liabilities
(Increase) decrease in receivables
(Increase) decrease in inventories and prepaid items
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase in unearned revenue
Total Adjustments
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributions of capital assets from other funds and
outside sources
1,130,184 764,908 364,773 513,575
20,394 11,448 (74,399) (16,470)
- (1,174) - -
(609,208) 63,968 247,134 (170,594)
(4,598) 20,824 481 (5,505)
- - - 6,417
536,772 859,974 537,989 327,423
$ (98,984) $ 1,012,036 $ 850,277 $ 460,632
$ 799,394 $ 368,410 $ 927,344 $ 1,038,559
Contributions of capital assets to Governmental Activities $ 126,750 $ - $ - $ -
See notes to financial statements.
EXHIBIT 7
(continued)
Enterprise Funds
America's Other
River Enterprise
Project Funds
Total
Governmental
Activities-
Internal
Service Funds
$ (124,559) $ (2,521,633) $ (2,684,389) $ 382,948
- 423,101 3,196,541 5,671
- (27,982) (87,009) (113,918)
- (8,079) (9,253) (2,889)
- 13,747 (454,953) 493,361
- 66,516 77,718 (25,108)
- - 6,417 -
- 467,303 2,729,461 357,117
$ (124,559) $ (2,054,330) $ 45,072 $ 740,065
$ - $
- $ 3,133,707 $ -
- $ 1,477,783 $ -
34
CITY OF DUBUQUE, IOWA EXHIBIT 8
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2008
Agency
Funds
ASSETS
Cash and pooled cash investments $ 959,930
Accounts receivable 7,235
Accrued interest 3,445
Total Assets $ 970.610
LIABILITIES
Accounts payable $ -
Due to other agency 970,610
Total Liabilities $ 970,610
See notes to financial statements. 35
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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. Interfund Balances and Transfers
5. Capital Assets
6. Long-term Debt
7. Risk Management
8. Commitments and Contingent Liabilities
9. Postemployment Health Care Benefits
10. Employee Retirement Systems
11. Conduit Debt
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. New Governmental Accounting Standards Board (GASB) Standards
36
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 1-SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and asix-member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component unit, an entity for which the City is considered to
be financially accountable. The City has no blended component units. The 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. The component unit also has a June 30 year end.
Discretely Presented Component Unit
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 Agency's purpose 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. Complete financial statements for the
Agency may be obtained from the City of Dubuque.
City of Dubuque
Finance Department
50 West 13th Street
Dubuque, Iowa 52001
Jointly Governed Organizations
The City also 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 assets and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and its component unit.
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 unit for which the
primary government is financially accountable.
(continued on next page) 37
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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 that are 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. 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 Employee Benefits Fund is used to account for pension and related employee benefit costs for
those employees paid wages from the General Fund.
The Community Development Fund is used to account for the use of Community Development
Block Grant funds as received from federal and state governmental agencies.
The Street Construction Fund is used to account for the resources and costs related to street
capital improvements.
(continued on next page) 38
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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 stormwater
services.
The Parking Facilities Fund is used to account for the operations of the City-owned parking
ramps and other parking facilities.
The America's River Project is used to account for the construction of all projects covered by the
Vision Iowa Grant, including all matching funds..
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 acost-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.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government-wide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private-sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City's water and sewer function and
various other functions of the City. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
(continued on next page) 39
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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, and Equity
Deposits and Investments
The City's cash 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 the end
of the fiscal year 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 fund balance reserve
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 unpaid taxes from the current year. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the
budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor
by March 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.
(continued on next page) 40
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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 government.
Inventories and Prepaid Items
Inventories included in the governmental funds are valued at cost using the first-in, first-out (FIFO) basis.
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 basis.
Inventories included in internal service funds are stated at the lower of cost (FIFO basis) 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.
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 balance sheet/statement of net assets 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 agreements and the City's cable television franchise 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.
(continued on next page) 41
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Capital Assets
Capital assets, which include property, plant, equipment, 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 assets and in the proprietary funds statement of net
assets. Capital assets are defined by the government as assets with an initial, individual cost of more than
$100,000 for infrastructure assets, $20,000 for building assets, and $10,000 for the remaining assets, and
an estimated useful life of more than a 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 that do not add to the value of
the asset or materially extend 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. Interest
incurred during the construction phase of capital assets of business-type activities is not included as part
of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component unit, is 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 15 to 75
Compensated Absences
The City allows employees to accumulate 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 are paid for 25% of all eligible hours (50% in the case of police and fire
employees). 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 assets. Bond premiums and
discounts, bond issuance costs, 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 and deferred amount on refundings.
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.
(continued on next page) 42
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Equity
The Dubuque Metropolitan Area Solid Waste Agency's restricted net assets represent 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 assets restricted for minority interest is
calculated at 22.7% of unrestricted net assets, based on the 1976 revenue bond resolution authorizing the
issuance of revenue bonds for the construction of the landfill.
In the fund financial statements, governmental funds report reservations of fund balance for amounts that
are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fund balance represent tentative management plans that are subject to change.
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
During the year ended June 30, 2008, disbursements did not exceed the amounts budgeted in any
function.
NOTE 2 -DEFICIT FUND EQUITY
The following funds have deficit net asset amounts as of June 30, 2008:
Enterprise
America's River Project $ 30,947
Internal Service
General Service $ 12,405
Workers' Compensation Reserve $ 119,142
The America's River Project deficit is a result of expenses incurred that are eligible for reimbursement as
projects are completed. The General 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 $11,262 for the City and $450 for the Dubuque
Metropolitan Area Solid Waste Agency.
Deposits. At year-end, the City's carrying amount of deposits was $45,234,910, and the bank balance was
$46,041,956. The City's deposits in banks at June 30, 2008, 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
$10,793,680, and the bank balance was $11,130,680. The Agency's deposits in banks at June 30, 2008,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
(continued on next page) 43
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Investments. As of June 30, 2008, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturities (In Yearsl
Investment Tvbe Less than 1 1 to 5 6 to 10 More than 10 Total
Mutual Funds
U.S. Treasury $ 2,759,138 $ - $ - $ - $ 2,759,138
U.S. Treasury Securities - 701,679 - - 701,679
Federal Agency Obligations 443,936 8,771,224 4,070,524 9,843,802 23,129,486
Corporate Stock 76,061 - - - 76,061
$ 3279,135 ~ 9.472.903 $ 4,070,524 ~ 9.843.802 $ 26,666,364
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.
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.
(continued on next page) 44
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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, 2008.
A reconciliation of cash and investments as shown on the government-wide statement of net assets for the
primary government and statement of fiduciary assets and liabilities follows:
Cash on hand
Carrying amount of deposits
Carrying amount of investments
Total
Government-wide
Cash and pooled cash investments
Cash and pooled cash investments -temporarily restricted
Cash and pooled cash investments -permanently restricted
Fiduciary
Cash and pooled cash investments
$ 11,262
45,234,910
26,666,364
71.912.536_
$ 49,699,727
21,164,818
88,061
959.930
Total ~ 71.912.5 3 6_
A reconciliation of cash and investments as shown on the government-wide statement of net assets for the
Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand
Carrying amount of deposits
$ 450
10.793.680
Total $ 10.794.130
Cash and pooled cash investments $ 7,168,906
Cash and pooled cash investments -temporarily restricted 3.625224
Total ~ 10.794.130_
NOTE 4 - INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2008, include amounts due to/from other funds and advances due to/from
other funds. Due to/from other funds balances represent amounts due to the general fund from the
nonmajor enterprise funds ($480,712) for deficit pooled cash balances. Advances to/from other fund
balance of $254,383 represent amounts due to the general fund from the water utility fund for a
construction loan.
(continued on next page) 45
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Interfund transfers for the year ended June 30, 2008, consisted of the following:
Transfer from
Transfer to
General
Community development
Street construction
General construction
Nonmajor governmental
Sewage disposal works
Water utility
Stormwater utility
America's River Project
Nonmajor enterprise
Transfer to
General
Community development
Street construction
General construction
Nonmajor governmental
Sewage disposal works
Water utility
Stormwater utility
America's River Project
Nonmajor enterprise
Nonmajor Sewage
Employee Community Street General Governmental Disposal
General Benefits Development Construction Construction Funds Works
$ - $ 2,442,595 $ 123,226 $ 23,950 $ 421,949 $ 637,672 $ 6,400
23,394 - - - - 353,819 -
168,816 - - - - 890,225 -
215,562 - - - - 339,910 -
1,429,936 - - 14,189 6,395,049 1,054,888 -
- - - - - 121,449 -
- - - - - 21,953 -
634,066 - - - - 69,133 -
831,431 - - 661,384 221,999 18,461 -
1,070,053 - - - - - -
$ 4,373,258 $ 2,442,595 $ 123,226 $ 699,523 $ 7,038,997 $ 3,507,510 $ 6,400
Transfer from
America's Nonmajor Internal
Water Stormwater Parking River Enterprise Service
Utility Utility Facilities Project Funds Funds Total
$ 7,575 $ 100,960 $ 9,900 $ 13,804 $ 16,000 $ 6,436 $ 3,810,467
- - - - - - 377,213
- - - - - - 1,059,041
- - 45,945 59,389 - - 660,806
- - - - - - 8,894,062
- - - - - - 121,449
- - - - - - 21,953
- - - 147,533 - - 850,732
- 33,172 - - - - 1,766,447
- - - - - - 1,070,053
$ 7,575 $ 134,132 $ 55,845 $ 220,726 $ 16,000 $ 6,436 18,632,223
Transfer to governmental activities capital assets from enterprise funds
1,477,783
$ 20,110,006
(continued on next page) 46
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
In the fund financial statements, total transfers out of $20,110,006 are greater than total transfers in of
$18,632,223 because of the treatment of transfers of capital assets to the governmental activities capital
assets. During the year, capital assets related to America's River Project and street projects with a book
value of $1,477,783 were transferred to governmental activities capital assets. No amounts were reported
in the governmental funds, as the amounts did not involve the transfer of financial resources. However,
America's River Project and Sewage Disposal Works did report transfers out for the capital resources
given.
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.
During the year ended June 30, 2008, according to grant requirements, the City made various transfers
into the America's River Project Fund to finance capital assets. When completed, these capital assets are
transferred to their respective fund.
NOTE 5 -CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2008, was as follows:
Primary Government:
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total capital assets, not
being depreciated
Capital assets, being
depreciated:
Buildings
Improvements other
than buildings
Machinery and equipment
Infrastructure
Total capital assets, being
depreciated
Beginning Transfers
Balance In
$ 51,912,748 $
16.067.956
67,980,704
101,663,541
15,028,954
25,636,645
178,774,083
321.103.223
Transfers Ending
Out Increases Decreases Balance
- $ - $ 8,003,356 $ (2,744,405) $ 57,171,699
- - 24.164.260 (26.187.2861 14.044.930
- - 32,167,616 (28,931,6911 71,216,629
- - 4,482,167
- 106,145,708
202,296 (339,982) 354,589 - 15,245,857
755,944 (37,594) 3,478,384 (1,154,241) 28,679,138
519,543 - 8,704,058 (455,6211 187,542,063
1.477.783 (377.5761. 17.019.198 (1.609.8621 337.612.766
(continued on next page) 47
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Less accumulated
depreciation for:
Buildings $ (20,461,542) $ - $ - $ (1,700,670) $ - $ (22,162,212)
Improvements other
than buildings (4,551,420) - - (490,042) - (5,041,462)
Machinery and equipment (10,860,285) - 37,594 (2,557,838) 1,473,172 (11,907,357)
Infrastructure (42.658.0591 - - (1,521,1481 72,430 (44,106,7771
Total accumulated
depreciation (78.531.3061 - 37.594 (6.269.6981 1.545.602 (83217.8081
Total capital assets, being
depreciated, net 242,571,917 1,477,783 (339,9821 10,749,500 (642601 254,394,958
Governmental activities
capital assets, net $ 310.552.621 $ 1.477.783 $ (339.982 $ 42,917,116 $ (28,995.95 $ 325,611,587
Business-type activit ies:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets, not being
depreciated:
Land $ 3,364,857 $ - $ - $ - $ - $ 3,364,857
Construction in progress 5298.854 147.533 (1.625.3161, 10.794.957 (8225.0911 6.390.937
Total capital assets, not
being depreciated 8.663.711 147.533 (1.625.3161. 10.794.957 (8225.0911 9.755.794
Capital assets, being
depreciated:
Buildings 60,964,620 - - 863,715 - 61,828,335
Improvements other
than buildings 55,727,107 339,982 - 6,015,763 - 62,082,852
Machinery and equipment 47,778284_ 37,594 - 1,686,498 (284,4621 49217,914
Total capital assets, being
depreciated 164.470.011 377.576 - 8.565.976 (284.4621 173.129.101
Less accumulated
depreciation for:
Buildings (36,917,800) - - (987,101) - (37,904,901)
Improvements other
than buildings (15,906,606) - - (1,028,096) - (16,934,702)
Machinery and equipment (19.924.3421 (37,5941 - (1,181,3441 284,462 (20,858,8181
Total accumulated
depreciation (72.748.7481 (37.5941 - (3.196.5411 284.462 (75.698.4211
Total capital assets, being
depreciated, net 91.721263 339.982 - 5.369.435 - 97.430.680
Business-type activities
capital assets, net ~ 100.384.974_ $ 487.515 $ (1.625.3161 $ 16,164,392 $ (8225.0911 $ 107.186.474
(continued on next page) 48
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities
Public safety $ 731,380
Public works 3,545,681
Health and social services 7,068
Culture and recreation 1,789,502
Community and economic development 35,243
General government 155,153
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 5.671
Total depreciation expense -governmental activities ~ 6269.698
Business-type activities
Sewage disposal works $ 1,130,184
Water utility 764,908
Stormwater utility 364,773
Parking facilities 513,575
Refuse collection 115,891
Transit system 307210
Total depreciation expense -business-type activities x,196.541
Component Unit:
Beginning Ending
Balance Increases Decreases Balance
Dubuque Metropolitan Area Solid
Waste Agency:
Capital assets, not being depreciated:
Land $ 1.586.092 $ - $ - $ 1.586.092
Capital assets, being depreciated:
Buildings 65,922 - - 65,922
Improvements other than buildings 7,468,652 - - 7,468,652
Machinery and equipment 2201.318 459.686 (299.3181 2.361.686
Total capital assets, being depreciated 9.735.892 459.686 (299.3181 9.896260
Less accumulated depreciation for:
Buildings (45,068) (719) - (45,787)
Improvements other than buildings (5,134,490) (435,385) - (5,569,875)
Machinery and equipment (1,354,390) (276,362) 160,489 (1,470263)
Total accumulated depreciation (6.533.9481 (712.4661 160.489 (7.085.9251
Total capital assets, being depreciated, net 320L944 (252.7801 (138.8291 2.810.335
Dubuque Metropolitan Area Solid
Waste Agency capital assets, net $ 4.788.036 ~~252.7801 $ (138 829 4 396.427_
Depreciation expense of $712,466 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
(continued on next page) 49
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 6 -LONG-TERM DEBT
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds have been issued for both
governmental and business-type activities. The original amount of general obligation bonds issued in
prior years was $43,940,000.
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, 2008, are as follows:
In a prior year, the City defeased general obligation bonds by placing the proceeds of new bonds in an
irrevocable trust to provide for all future debt service payments on the old bonds. Accordingly, the trust
account assets and the liability for the defeased bonds are not included in the City's financial statements.
On June 30, 2008, $3,345,000 of bonds outstanding are considered defeased. These bonds will remain
outstanding until they are called on June 1, 2009.
Purpose
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
and refunding
Corporate purpose
Corporate purpose
Corporate purpose
Corporate purpose
Refunding
Corporate purpose
and refunding
Corporate purpose
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
06/01/00 06/01/02-06/01/09 5.80% $ 2,750,000 $ 125,000
11/O1/00 06/01/02-06/01/17 5.13 6,265,000 285,000
12/27/01 06/01/05-06/01/21 4.00-4.90 9,500,000 7,815,000
01/09/02 06/01/04-06/01/21 4.10-4.95 2,860,000 2,205,000
03/26/02 06/01/03-06/01/21 4.00-5.00 1,000,000 780,000
12/03/02 06/01/03-06/01/17 3.50-4.30 3,105,000 1,600,000
10/15/03 06/01/04-06/01/23 3.20-4.75 2,110,000 1,680,000
04/18/05 06/01/06-06/01/24 3.15-5.00 9,015,000 7,865,000
04/03/06 06/01/07-06/01/25 3.80-4.20 2,900,000 2,705,000
04/03/06 06/01/07-06/01/21 3.60-4.20 910,000 825,000
04/03/06 06/01/10-06/01/20 3.65-4.10 3,525,000 3,525,000
12/01/07 06/10/10-06/01/17 3.75 2,965,000 2,965,000
12/01/07 06/10/09-06/01/17 3.40-3.65 1,055,000 1,055,000
$ 47.960.000 $ 33.430.000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ending
June 30
2009
2010
2011
2012
2013
2014-2018
2019-2023
2024-2025
Total
Governmental Activities
Principal Interest
1,305,000 $ 951,006
1,470,213 896,949
1,532,340 837,529
1,584,468 774,282
1,628,723 707,570
8,917,766 2,423,343
5,421,490 491,789
Business-tube Activities
Principal Interest
700,000 $ 460,020
684,787 432,882
712,660 408,862
740,532 383,151
761,277 355,869
4,187,234 1,314,061
3,218,510 484,377
565,000 33,570
$ 2L860,000 $ 7.082.468 $ 1L570,000 $ 3.872.792
(continued on next page) 50
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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 generally are issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi-annually. The original amount of tax increment
financing bonds issued in prior years was $4,568,538. Tax increment financing bonds outstanding at
June 30, 2008, are as follows:
Date of
Issue
Advanced Data-
Comm 03/18/99
Cartegraph Systems 12/01/99
Eagle Window &
Door 02/15/00
Vessel Systems 12/30/03
Diamond Jo Parking
Ramp 10/ 16/07
Amount Amount
Interest Originally Outstanding
Maturity Dates Rates Issued End of Year
12/31/01-06/30/11 6.0% $ 900,000 $ 279,220
12/31/01-12/31/10 8.8 360,000 112,607
12/31/02-06/30/12 9.1 3,168,538 1,610,775
12/30/05-06/30/15 8.0 140,000 108,799
06/01/11-06/01/37 7.5 23.025.000 23.025.000
27.593.538 ~ 25.136.402_
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Ending
June 30
Governmental Activities
Principal Interest
2009 $ 524,727 $ 1,898,128
2010 569,630 1,853,225
2011 774,204 1,805,199
2012 778,939 1,742,354
2013 346,617 1,686,616
2014-2018 2,097,285 8,006,677
2019-2023 2,965,000 7,104,000
2024-2028 4,245,000 5,814,375
2029-2033 6,100,000 3,963,750
2034-2039 6,735,000 1,308,376
Total
$ 25.136.402 $ 35.182.700
Revenue Bonds. The City also issues bonds where the City pledges income derived from the acquired or
constructed assets to pay debt service. These bonds generally are issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. Revenue bonds
outstanding at June 30, 2008, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Parking facilities 03/01/98 05/01/98-OS/O1/10 4.70-4.75% $ 2.515.000 ~ 490.000
(continued on next page) 51
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Revenue bond debt service requirements to maturity are as follows
Fiscal Year Ending Business-tube Activities
June 30 Principal Interest
2009 $ 240,000 $ 23,155
2010 250.000 11.875
Total ~ 490.000 ~ 35.030
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, 2008, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
Adams Company 02/13/04 06/01/05-06/01/15 4.07% $ 500,000 $ 318,182
Lower Main
Development 06/30/04 12/31/06-06/30/16 8.00 182,000 155,415
Theisen Supply 11/22/06 12/31/08-06/30/18 8.25 806,039 806,039
$ 1.488.039 $ 1279.636_
Annual debt service requirements to maturity for notes payable are as foll ows:
Fiscal Year Ending Governmen tal Activities
June 30 Principal Interest
2009 $ 114,873 $ 90,844
2010 120,679 83,187
2011 126,973 75,044
2012 133,792 66,374
2013 141,183 55,284
2014-2018 642.136 129.615
Total $ 1279.636 ~ 500.348
Capital Loan Notes. 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 F unds.
Planning
Northfork Catfish
Creek Project 1
Construction
Drinking Water
Northfork Catfish
Creek Project 2
Northfork Catfish
Creek Project 3
Amount
Date Interest Amount Outstanding
Authorized Maturity Dates Rates Authorized End of Year
12/28/06 12/01/2008-06/01/2028 3.25% $ 85,000 $ 82,990
10/01/07 12/01/2008-06/01/2028 3.25%
12/28/06 12/01/2008-06/01/2028 3.25%
12/28/06 12/01/2008-06/01/2028 3.25%
1,037,000 453,336
231,700 19,133
168.850 56.538
522.550 $ 611.997_
52
(continued on next page)
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Annual Debt Service Requirements to maturity for state revolving fund loans are as follows:
Fiscal Year Ending
June 30
Business-Tube Activities
Principal Interest
2009 $ 22,070 $ 19,711
2010 22,867 18,985
2011 23,617 18,236
2012 24,390 17,462
2013 25,190 16,663
2014-2018 138,882 70,382
2019-2023 163,174 46,090
2024-2028 191.807 17,549
Total $ 611.997 $ 225.078_
At June 30, 2008, the City of Dubuque had $910,553 of capital loan note funds available. These funds are
available to the City by filing a disbursement request with the State of Iowa. The City expects to use the
remaining available funds in fiscal year 2009.
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2008, was as
follows:
Beginning Ending
Balance Additions Reductions Balance
Governmental activities:
General obligation bonds $ 22,990,000 $ 2,965,000 $ (4,095,000) $ 21,860,000
Less:
Unamortized discounts (49,015) (26,050) 32,901 (42,164)
Deferred amount on
refunding (70.3391 - 5.410 (64.9291
Total general
obligation bonds 22,870,646 2,938,950 (4,056,689) 21,752,907
Tax increment financing
bonds 2,594,831 23,025,000 (483,429) 25,136,402
Less:
Unamortized discounts - (266.1581 8.872 (2572861
Total tax increment
financing bonds 2,594,831 22,758,842 474,557 24,879,116
Notes payable 1,279,885 58,696 (58,945) 1,279,636
Compensated absences 2.442.166 2.540.145 (2.442.1661 2.540.145
29.187.528 ~ 28.296.633 ~ (7.032.3571 ~ 50.451.804
Due Within
One Year
$ 1,305,000
1,305,000
524,727
524,727
114,873
2.540.145
$ 4.484.745_
(continued on next page) 53
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type activities:
General obligation bonds $ 11,090,000 $ 1,055,000 $ (575,000) $ 11,570,000 $ 700,000
Less:
Unamortized discounts (78,452) (5,908) 5,767 (78,593) -
Deferred amount on
refunding (115.9551 - 8.919 (107.0361 -
Total general
obligation bonds 10,895,593 1,049,092 (560,314) 11,384,371 700,000
Revenue bonds 720,000 - (230,000) 490,000 240,000
Capital loan notes - 611,997 - 611,997 22,070
Compensated absences 281,474 331,500 (281,474) 331.500 331,500
11.897.067 ~ 1.992.589 ~ (1.071.7881 ~ 12.817.868 ~ 1.293.570
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
NOTE 7 -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 and
participates in a local government risk pool.
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 $85,000, and an aggregate stop loss of
$6,075,095 for 2008. 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 $450,000, and an aggregate stop loss consistent with
statutory limits for 2008. 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.
(continued on next page) 54
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
All funds of the City participate in both programs and make payments to the Health Insurance Reserve
Fund and the Workers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior- and current-year claims. The claims liability of $829,027 in the Health Insurance Reserve
Fund and $774,612 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 for the fiscal years ended June 30, 2008 and 2007, are summarized as
follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 30, 2006 $ 657,846 $ 356,082
Claims and changes in estimates during fiscal year 2007 4,771,063 336,207
Claim payments (4.714.3631 (273.9091
Liabilities at June 30, 2007 714,546 418,380
Claims and changes in estimates during fiscal year 2008 5,012,424 969,483
Claim payments (4.897.9431 (6132511
Liabilities at June 30, 2008 ~ 829.027 ~ 774.612
The City is a member in the Iowa Communities Assurance Pool, as allowed by Chapter 670.7 of the Code
of Iowa. The Iowa Communities Assurance Pool (Pool) is a local government risk-sharing pool whose
570 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 to equa1200 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.
(continued on next page) 55
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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, 2008, were $540,570.
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. The next $2,650,000 in claims are covered with another pool (APEEP). Claims exceeding
$3,000,000 are reinsured. Property and automobile physical damage risks are retained by the Pool up to
$100,000 each occurrence, each location, with excess coverage reinsured on an individual-member basis.
The Pool's intergovernmental contract 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, 2008, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool's inception.
Members agree to continue membership in the Pool 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.
NOTE 8 -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 general
fund or other applicable funds. 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,
2008.
Litigation
The City's corporation counsel reported that as of June 30, 2008, various claims and lawsuits were on file
against the City. The corporation counsel estimated that all 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.
(continued on next page) 56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2008. The City has additional commitments for signed construction contracts
of $18,316,799 as of June 30, 2008. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
NOTE 9 - POSTEMPLOYMENT HEALTH CARE BENEFITS
In addition to providing pension benefits, the City provides certain health care benefits for retired disabled
police officers and firefighters as mandated by the Code of Iowa. The cost of health care benefits for
retired disabled police officers and firefighters is recognized as an expenditure as claims are paid. As of
June 30, 2008, 55 retirees were eligible for these benefits, and the cost of the benefits for the fiscal year
ended June 30, 2008, totaled $13,421.
NOTE 10 -EMPLOYEE RETIREMENT SYSTEMS
MFPRSI
The City contributes to the Municipal Fire and Police Retirement System of Iowa (the 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.
Plan members are required to contribute 9.35% of earnable compensation, and the City is required to
contribute 25.48% of earnable compensation. Contribution requirements are established by state statute.
The City's contributions to the Plan for the years ended June 30, 2008, 2007, and 2006, were $2,632,282,
$2,730,207, and $2,704,451, respectively, which met the required minimum contribution for each year.
IPERS
The City contributes to the Iowa Public Employees Retirement System (IPERS) which is acost-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.
Plan members are required to contribute 3.90% of their annual covered salary, and the City is required to
contribute 6.05% of annual covered payroll. Contribution requirements are established by state statute.
The City's contributions to IPERS for the years ended June 30, 2008, 2007, and 2006, were $1,200,182,
$1,071,260, and $1,016,907, respectively, equal to the required contributions for each year.
(continued on next page) 57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 11-CONDUIT DEBT
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed
to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownership of the
acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the
State, nor any political subdivision thereof is obligated in any manner for repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements.
As of June 30, 2008, there was one series of Industrial Revenue Bonds outstanding, with an aggregate
principal amount payable of $650,000.
NOTE 12 -LANDFILL CLOSURE AND POSTCLOSURE CARE
State and federal laws and regulations require the Dubuque Metropolitan Area Solid Waste 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 postclosure 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 postclosure care costs as an operating
expense in each period based on landfill capacity used as of each statement of net assets date. The
$3,136,395 reported as landfill closure and postclosure care liability at June 30, 2008, represents the
cumulative amount reported to date based on the use of 100% of the estimated capacity of cells 3 and 4,
the use of 90% of the estimated capacity of cells 5 and 6, and the use of 30% of the estimated capacity of
cells 7 and 8. The Agency will recognize the remaining estimated cost of closure and postclosure care of
$961,405 as the remaining capacity is filled.
These amounts are based on what it would cost to perform all closure and postclosure care in 2008. The
Agency expects to close cells 3 and 4 in 2009, cells 5 and 6 in 2011, and cells 7 and 8 in 2014. 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.
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2008, funds have been restricted for closure and postclosure
costs in the amount of $3,386,078, which exceeds the liability currently recognized.
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, 2008 is $7,581,159, with $142,423 of
depreciation expense during the year ended June 30, 2008. The DRA lease amount is based on the
association's gross gambling receipts. During the year ended June 30, 2008, the DRA lease generated
$9,720,429 in lease revenue.
(continued on next page) 58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 14 -SUBSEQUENT EVENTS
On October 6, 2008, the City authorized $3,885,000 of General Obligation Bonds, Series 2008A to
support stormwater management facilities and improvements, including costs associated with Bee Branch
Creek Restoration Project. The interest rate on the bonds range from 3.75% to 4.80% with a maturity date
of June 1, 2028. The funds to repay the bonds will be generated via stormwater user fees.
On October 6, 2008, the City authorized $3,290,000 of Greater Downtown Urban Renewal District
General Obligation Bonds Series 2008B to support the Library Renovation Project and building
renovations and improvements to the former Kephart's Building and the non-taxable portion of bonds
($455,000) for the Dubuque Industrial Center West, North Siegert Farm demolition and grading project.
The interest rate on the bonds range from 3.75% to 4.25% with a maturity date of June 1, 2023. The funds
to repay the debt will be tax increment revenues of the Greater Downtown Urban Renewal District.
On October 6, 2008, the City authorized $2,465,000 of Urban Renewal General Obligation Bonds for
Urban Renewal taxable Series 2008C to support the Dubuque Industrial Center West Economic
Development District, North Siegert Farm demolition and grading project. The interest rate on the bonds
range from 5.25% to 5.50% with a maturity date of June 1, 2018. The funds to repay the bonds will be tax
increment revenues.
On October 6, 2008, the City authorized $1,195,000 Water Revenue Bonds Series 2008D to support water
main replacements and repairs, construction of water main extensions, and the installation of pump station
radio communication equipment and facilities. The interest rate on the bonds range from 3.00% to 5.00%
with a maturity date of June 1, 2023. The funds to repay the bonds will be generated from water utility
fees.
The City will be borrowing funds for a number of sanitary sewer and stormwater projects and for
significant upgrades to the Water Pollution Control Plant. Plans provide for the use of Clean Water State
Revolving Fund (SRF) through the Iowa Finance Authority. The loans include construction and planning
and design with Intended Use Plans (IUP) for approximately $65,000,000 filed. Construction loans
provide a 3% interest rate, .25% annual service fee and a 1% origination fee. Planning and Design Loans
have no interest for three years, no initiation fee and no servicing fee.
NOTE 15 -NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
STANDARDS
The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented
by the City of Dubuque. The statements, which might impact the City of Dubuque, are as follows:
Statement No. 45, Accounting and Financial Reporting by Employers for Postemployment Benefits Other
Than Pensions, issued June 2004, will be effective for the fiscal year ending June 30, 2009. This
statement establishes standards for the measurement, recognition, and display of other postemployment
benefit (OPEB) expense/expenditures and related liabilities (assets), note disclosures, and, if applicable,
required supplementary information in the financial reports of state and local governmental employers.
(continued on next page) 59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Statement No. 47, Accounting for Termination Benefits, issued June 2005, establishes accounting
standards for termination benefits. For termination benefits provided through an existing defined benefit
OPEB plan, the provisions of this statement should be implemented simultaneously with the requirements
of Statement No. 45. For all other termination benefits, this statement was effective for the fiscal year
ended June 30, 2006.
Statement No. 49, Accounting and Financial Reporting for Pollution Remediation Obligations, issued
November 2006, will be effective for the fiscal year ending June 30, 2009. This statement establishes
standards for accounting and financial reporting for obligations to address the current or potential
detrimental effects of existing pollution.
Statement No. 51, Accounting and Financial Reporting for Intangible Assets, issued June 2007, will be
effective for the fiscal year ending June 30, 2010. This statement requires that all intangible assets not
specifically excluded by its scope be classified as capital assets.
Statement No. 52, Land and Other Real Estate Held as Investments by Endowments, issued November
2007, will be effective for the fiscal year ending June 30, 2009. This statement establishes consistent
standards for the reporting of land and other real estate held as investments by essentially similar entities.
Statement No. 53, Accounting and Financial Reporting for Derivative Instruments, issued June 2008, will
be effective for the fiscal year ending June 30, 2010. This statement addresses the recognition,
measurement, and disclosure of information regarding derivative instruments entered into by state and
local governments.
The City's management has not yet determined the effect these Statements will have on the City's
financial statements.
60
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF DUBUQUE, IOWA
CITY OF DUBUQUE, IOWA
SCHEDULE OF RECEIPTS, EXPENDITURES, AND CHANGES IN BALANCES -
BUDGET AND ACTUAL (BUDGETARY BASIS)
GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
RECEIPTS
Property tax
Tax increment fmancing
Other City tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for fees and service
Special assessments
Miscellaneous
Total Receipts
EXPENDITURES
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business-type activities
Total Expenditures
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES, NET
EXCESS (DEFICIENCY) OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
BALANCE, BEGINNING
BALANCE, ENDING
Final to
Budgeted Amounts Actual
Actual Original Final Variance
$ 17,383,349 $ 17,430,933 $ 18,006,072 $ (622,723)
4,482,540 4,357,984 4,357,984 124,556
10,969,356 11,197,760 11,222,621 (253,265)
3,449,744 3,354,041 3,354,041 95,703
20,117,201 17,729,706 17,862,548 2,254,653
14,502,333 17,157,450 37,022,711 (22,520,378)
18,400,042 24,035,801 24,228,348 (5,828,306)
244,117 700,000 1,382,627 (1,138,510)
12,250,378 4,961,654 13,516,295 (1,265,917)
101,799,060 100,925,329 130,953,247 (29,154,187)
20,736,955 20,906,502 21,543,195 806,240
12,885,957 10,578,404 13,477,845 591,888
853,367 846,181 961,972 108,605
8,479,941 8,336,448 8,502,032 22,091
8,756,397 8,512,576 9,430,480 674,083
5,464,091 5,674,587 6,048,553 584,462
3,089,509 3,107,249 3,107,249 17,740
27,032,019 21,808,077 67,573,130 40,541,111
26,220,817 37,048,839 51,349,916 25,129,099
113,519,053 116,818,863 181,994,372 68,475,319
(11,719,993 (15,893,534 (51,041125 39,321,132
27,461,966 12,508,224 33,761,093 (6,299,127)
15,741,973 (3,385,310) (17,280,032) 33,022,005
49,212,310 49,212,310 49,212,310 -
$ 64,954,283 $ 45,827,000 $ 31,932,278 $ 33,022,005
61
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2008
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 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, 2008, was amended two times during the year to allow the
City to increase function expenditures by $65,175,509, primarily for the carry-forward of unfinished
capital improvement projects and expenditure of additional grants for capital improvements.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Modified Governmental Enterprise
AccruaU Funds Funds
Budgetary Accrual Accrual Modified
Basis Adiustments Basis Accrual Basis Accrual Basis Total
Receipts/revenues $ 101,799,060 $ 254,771 $ 102,053,831 $ 82,989,782 $ 19,064,049 $ 102,053,831
Expenditures/expenses 113.519.053 (6.499.9561 107.019.097 86.628.304 20.390.793 107.019.097
Deficiency of receipts/
revenues under
expenditures/expenses (11,719,993) 6,754,727 (4,965,266) (3,638,522) (1,326,744) (4,965,266)
Other financing sources,
net 27.461.966 9.122 27.471.088 22.425.208 5.045.880 27.471.088
Net 15,741,973 6,763,849 22,505,822 18,786,686 3,719,136 22,505,822
Balance, beginning 49,212,310 102,163,970 151,376,280, 48,123,530 103252,750 151,376280
Balance, ending ~ 64.954283 $ 108.927.819 $ 173.882.102. $ 66.910216 $ 106,971.886 $ 173.882.102
62
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.
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.
Tax Increment Financing Fund -This fund is used to account for the receipt of property taxes, for
the payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long-term debt service.
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.
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.
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.
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.
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Restricted cash and pooled cash investments
Total Assets
LIABILITIES AND FUND BALANCES
LIABII,ITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Deferred revenue
Succeeding year property tax
Other
Total Liabilities
FUND BALANCES
Reserved for/by
Encumbrances
Long-term notes receivable
Bond ordinance
Debt service
Franchise agreement
Endowments
Unreserved, undesignated reported in
Special revenue funds
Capital projects funds
Permanent funds
Total Fund Balances
Total Liabilities and Fund Balances
Road Section VIII Tort
Use Tax Housing Liability
$ 2,212,075 $ 1,128,495 $ 18,457
- - 5,018
- - 389,492
- 4,687 -
- 2,475 -
395,682 13,206 -
- 18,919 -
$ 2,607,757 $ 1,167,782 $ 412,967
$ 118,427 $ 20,252 $ -
58,750 15,759 -
- 3,256 -
- - 389,492
- - 655
177,177 3 9, 267 3 90,147
143,316 3,961 -
- 1,775 -
2,287,264 1,122,779 22,820
2,430,580 1,128,515 22,820
$ 2,607,757 $ 1,167,782 $ 412,967
EXHIBIT A-1
Special Revenue
Tax Library
Special Increment Expendable Debt
Assessments Financing Cable TV Gifts Trust Service
$ - $ 1,172,296 $ 985,834 $ 116,043 $ 3,155
- - 16,506 - -
328,204 - - - -
- 73,756 2,805 660 -
- 5,114,998 1,332 - -
$ 328,204 $ 6,361,050 $ 1,006,477 $ 116,703 $ 3,155
$ - $ 55,888 $ 4,598 $ 886 $ -
- - 9,626 - -
294,581 - 590,819 - -
294,581 55,888 605,043 886 -
- - 13,924 2,066 -
- 5,114,998 - - -
- - - - 3,155
- - 1,332 - -
33,623 1,190,164 386,178 113,751 -
33,623 6,305,162 401,434 115,817 3,155
$ 328,204 $ 6,361,050 $ 1,006,477 $ 116,703 $ 3,155
63
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2008
Capital Projects
Airport Sales Tax
Construction Construction
ASSETS
Cash and pooled cash investments $ 599,732 $ 2,266,416
Receivables
Property tax
Delinquent - -
Succeedingyear - -
Accounts and other - -
Special assessments - -
Accrued interest 1,922 16,501
Notes - -
Intergovernmental - 261,598
Restricted cash and pooled cash investments - -
Total Assets $ 601,654 $ 2,544,515
LIABILITIES AND FUND BALANCES
LIABII,ITIES
Accounts payable $ 6,243 $ 53,009
Accrued payroll - -
Intergovernmental payable - -
Deferred revenue
Succeeding year property tax - -
Other - -
Total Liabilities 6,243 53,009
FUND BALANCES
Reserved for/by
Encumbrances 183,948 330,919
Long-term notes receivable - -
Bond ordinance - -
Debt service - -
Franchise agreement - -
Endowments - -
Unreserved, undesignated reported in
Special revenue funds - -
Capital projects funds 411,463 2,160,587
Permanent funds - -
Total Fund Balances 595,411 2,491,506
Total Liabilities and Fund Balances $ 601,654 $ 2,544,515
EXHIBIT A-1
(continued)
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
- $ - $ 8,502,503
- - 5,018
- - 389,492
- - 16,506
- - 328,204
130 119 100,580
- - 2,475
- - 670,486
100,140 21,630 5,257,019
$ 100,270 $ 21,749 $ 15,272,283
- $ - $ 259,303
- - 84,135
- - 3,256
- - 389,492
- - 886,055
- - 1,622,241
- - 678,134
- - 1,775
- - 5,114,998
- - 3,155
- - 1,332
76,061 12,000 88,061
- - 5,156,579
- - 2,572,050
24,209 9,749 33,958
100,270 21,749 13,650,042
$ 100,270 $ 21,749 $ 15,272,283
64
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Road Section VIII
Use Tax Housing
REVENUES
Taxes $ - $ -
Special assessments - -
Intergovernmental 4,945,039 4,313,421
Charges for services - -
Investmentearnings - 52,809
Contributions - -
Miscellaneous 2,615 5,861
Total Revenues 4,947,654 4,372,091
EXPENDITURES
Current
Public safety - 21,750
Public works 5,769,816 -
Health and social services - -
Culture and recreation - -
Community and economic development - 4,508,283
General government - -
Debt service - -
Capital projects - -
Total Expenditures 5,769,816 4,530,033
EXCESS (DEFICIENCY OF REVENUES
OVER (UNDER) EXPENDITURES (822,162) (157,942)
OTHER FINANCING SOURCES (USES)
Issuance of debt - -
Issuance of refunding bonds - -
Payment to refunded bond escrow agent - -
Transfers in 1,062,338 -
Transfers out (115,134) (23,990)
Sale of capital assets 15,275 -
Total Other Financing Sources (Uses) 962,479 (23,990)
NET CHANGE IN FUND BALANCES 140,317 (181,932)
FUND BALANCES, BEGINNING 2,290,263 1,310,447
FUND BALANCES, ENDING $ 2,430,580 $ 1,128,515
EXHIBIT A-2
Special Revenue
Tax
Tort Special Increment
Liability Assessments Financing
$ 383,675 $ - $ 4,482,541 $
- 177,585 -
- - 5
- 67,705 218,224
- 16,171 -
383,675 261,461 4,700,770
Library
Expendable Debt
Cable TV Gifts Trust Service
- $ - $ -
36,417 4,394 -
- 94,423 -
636,863 - -
673,280 98,817 -
- - - 76,786 - -
- - - 27,885 - -
- - - - 94,127 -
- - 1,026,838 - - -
- 35 - 550,518 - 90,000
- - 3,078,186 - - 1,037,113
- 35 4,105,024 655,189 94,127 1,127,113
383,675 261,426 595,746 18,091 4,690 (1,127,113)
- - 58,696 - - -
- - - - - 2,965,000
- - - - - (2,875,000)
- - 6,395,049 36,660 - 1,037,114
(382,596) (919,215) (1,316,308) (106,949) - -
- - 137,000 - - -
(382,596) (919,215) 5,274,437 (70,289) - 1,127,114
1,079 (657,789) 5,870,183 (52,198) 4,690 1
21,741 691,412 434,979 453,632 111,127 3,154
$ 22,820 $ 33,623 $ 6,305,162 $ 401,434 $ 115,817 $ 3,155
(continued)
65
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Capital Projects
Airport Sales Tax
Construction Construction
REVENUES
Taxes $ - $ 1,604,178
Special assessments - -
Intergovernmental 86,756 -
Charges for services 184,643 -
Investment earnings 16,815 135,108
Contributions - -
Miscellaneous - 1,799
Total Revenues 288,214 1,741,085
EXPENDITURES
Current
Public safety - -
Public works - -
Health and social services - -
Culture and recreation - -
Community and economic development - -
General government - -
Debt service - -
Capital projects 109,066 1,555,101
Total Expenditures 109,066 1,555,101
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 179,148 185,984
OTHER FINANCING SOURCES (USES)
Issuance of debt - -
Issuance of refunding bonds - -
Payment to refunded bond escrow agent - -
Transfers in 234,043 128,858
Transfers out (1,860) (641,458)
Sale of capital assets - -
Total Other Financing Sources (Uses) 232,183 (512,600)
NET CHANGE IN FUND BALANCES 411,331 (326,616)
FUND BALANCES, BEGINNING 184,080 2,818,122
FUND BALANCES, ENDING $ 595,411 $ 2,491,506
EXHIBIT A-2
(continued)
Permanent Funds
Ella Lyons Library
Peony Trail Gifts
Trust Trust
Total
Nonmajor
Governmental
Funds
- $ - $ 6,470,394
- - 177,585
- - 9,345,216
- - 184,648
(14,945) 1,006 517,533
- - 94,423
- - 663,309
(14,945) 1,006 17,453,108
- - 98,536
- - 5,769,816
- - 27,885
2,258 - 96,385
- - 5,535,121
- - 640,553
- - 4,115,299
- - 1,664,167
2,258 - 17,947,762
(17,203) 1,006 (494,654)
58,696
- - 2,965,000
- - (2,875,000)
- - 8,894,062
- - (3,507,510)
- - 152,275
- - 5,687,523
(17,203) 1,006 5,192,869
117,473 20,743 8,457,173
$ 100,270 $ 21,749 $ 13,650,042
66
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.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2008
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Inventories
Total Current Assets
NONCURRENT ASSETS
Capital assets
Land
Buildings
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Assets
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Accrued compensated absences
Due to other funds
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
EXHIBIT B-1
Total Other
Refuse Transit Enterprise
Collection System Funds
$ 745,153 $ - $ 745,153
297,023 6,434 303,457
4,287 - 4,287
- 976,184 976,184
- 17,375 17,375
1,046,463 999,993 2,046,456
- 36,000 36,000
- 1,887,564 1,887,564
1,636,150 3,606,348 5,242,498
(1,476,857) (3,272,600) (4,749,457)
159,293 2,257,312 2,416,605
1,205,756 3,257,305 4,463,061
37,822 13,609 51,431
42,518 45,261 87,779
83,900 22,662 106,562
- 480,712 480,712
164,240 562,244 726,484
159,293 2,257,312 2,416,605
882,223 437,749 1,319,972
$ 1,041,516 $ 2,695,061 $ 3,736,577
67
CITY OF DUBUQUE, IOWA EXHIBIT B-2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING LOSS
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings
Gain on disposal of assets
Net Nonoperating Revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING
NET ASSETS, ENDING
Total Other
Refuse Transit Enterprise
Collection System Funds
$ 2,709,854 $ 195,104 $ 2,904,958
729 713 1,442
2,710,583 195,817 2,906,400
1,663,486 1,270,397 2,933,883
14,730 60,695 75,425
270,020 486,192 756,212
633,793 533,628 1,167,421
26,130 45,861 71,991
115,891 307,210 423,101
2,724,050 2,703,983 5,428,033
(13,467) (2,508,166) (2,521,633)
13,078 1,196,558 1,209,636
32,428 - 32,428
7,098 - 7,098
52,604 1,196,558 1,249,162
39,137 (1,311,608) (1,272,471)
- 1,070,053 1,070,053
(16,000) - (16,000)
23,137 (241,555) (218,418)
1,018,379 2,936,616 3,954,995
e ~ nn~ c~~ e ~ Inc n~~ e ~ -~~~ c-~-~
68
CITY OF DUBUQUE, IDWA EXHIBIT B-3
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
Total Other
Refuse Transit Enterprise
Collection System Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,687,742 $ 189,234 $ 2,876,976
Cash payments to suppliers for goods and services (932,557) (1,132,824) (2,065,381)
Cash payments to employees for services (1,602,927) (1,264,440) (2,867,367)
Other operating receipts 729 713 1,442
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES 152,987 (2,207,317) (2,054,330)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 1,070,053 1,070,053
Transfers to other funds (16,000) - (16,000)
Proceeds from interfund balances - 480,712 480,712
Intergovernmentalgrantproceeds 13,078 257,246 270,324
NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES (2,922) 1,808,011 1,805,089
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 7,098 - 7,098
Acquisition and construction of capital assets - (28,000) (28,000)
NET CASH PROVIDED (USED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES 7,098 (28,000) (20,902)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 34,008 - 34,008
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS 191,171 (427,306) (236,135)
CASH AND CASH EQUIVALENTS, BEGINNING 553,982 427,306 981,288
CASH AND CASH EQUIVALENTS, ENDING $ 745,153 $ - $ 745,153
(continued)
69
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating loss
Adjustments to reconcile operating loss to net
cash provided (used) by operating activities
Depreciation
Change in assets and liabilities
Increase in receivables
Increase in inventories
Increase in accounts payable
Increase in accrued liabilities
Total Adjustments
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
EXHIBIT B-3
(continued)
Business-type Activities -Enterprise Funds
Total Other
Refuse Transit Enterprise
Collection System Funds
$ (13,467) $ (2,508,166) $ (2,521,633)
115,891 307,210 423,101
(22,112) (5,870) (27,982)
- (8,079) (8,079)
12,116 1,631 13,747
60,559 5,957 66,516
166,454 300,849 467,303
$ 152,987 $ (2,207,317) $ (2,054,330)
70
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-
reimbursementbasis.
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 costs.
Workers' Compensation Reserve Fund -This fund is used to account for workers' compensation
costs.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2008
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Inventories
Total Current Assets
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Assets
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets (Deficit)
General Garage Stores/
Service Service Printing
$ 6,732 $ 184,154 $ 8,360
- 55,217 2,421
6,732 239,371 10,781
- 102,034 -
- (49,914) -
- 52,120 -
6,732 291,491 10,781
- 63,728 95
19,137 23,417 -
19,137 87,145 95
- 52,120 -
(12,405) 152,226 10,686
$ (12,405) $ 204,346 $ 10,686
EXHIBIT C-1
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 4,021,249 $ 651,753 $ 4,872,248
120,692 - 120,692
21,828 3,717 25,545
- - 57,638
4,163,769 655,470 5,076,123
- - 102,034
- - (49,914)
- - 52,120
4,163,769 655,470 5,128,243
829,027 774,612 1,667,462
- - 42,554
829,027 774,612 1,710,016
- - 52,120
3,334,742 (119,142) 3,366,107
$ 3,334,742 $ (119,142) $ 3,418,227
71
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS (DEFICIT)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES
Investment earnings
Gain on disposal of assets
Total Nonoperating Revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS OUT
CHANGE 1N NET ASSETS
NET ASSETS (DEFICIT), BEGINNING
NET ASSETS (DEFICIT), ENDING
General Garage Stores/
Service Service Printing
$ 1,539,021 $ 1,983,876 $ 25,574
1,539,021 1,983,876 25,574
1,473,234 774,150 -
- 24,009 -
- 28,123 -
5,631 1,056,029 30,407
10,631 12,751 -
- 5,671 -
1,489,496 1,900,733 30,407
49,525 83,143 (4,833)
- 3,105 -
- 3,105 -
49,525 86,248 (4,833)
- (6,436) -
49,525 79,812 (4,833)
(61,930) 124,534 15,519
$ (12,405) $ 204,346 $ 10,686
EXHIBIT C-2
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 6,195,666 $ 518,010 $ 10,262,147
222,409 18,285 240,694
6,418,075 536,295 10,502,841
- - 2,247,384
- - 24,009
- - 28,123
5,189,378 996,905 7,278,350
488,747 24,227 536,356
- - 5,671
5,678,125 1,021,132 10,119,893
739,950 (484,837) 382,948
177,722 36,388 214,110
- - 3,105
177,722 36,388 217,215
917,672 (448,449) 600,163
- - (6,436)
917,672 (448,449) 593,727
2,417,070 329,307 2,824,500
$ 3,334,742 $ (119,142) $ 3,418,227
72
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers to other funds
Payment of interfund balances
NET CASH USED BY NONCAPITAL FINANCING
ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
Acquisition and construction of capital assets
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
RECONCII,IATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided (used) by operating activities
Depreciation
Change in assets and liabilities
Increase in receivables
Increase in inventories
Increase (decrease) in accounts payable
Increase (decrease)in accrued liabilities
Total Adjustments
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
General Garage Stores/
Service Service Printing
$ 1,539,021 $ 1,983,876 $ 25,574
(16,262) (1,100,210) (31,350)
(1,500,305) (772,187) -
22,454 111,479 (5,776)
- (6,436) -
(15,722) - -
(15,722) (6,436) -
- 3,105 -
- (15,028) -
- (11,923) -
6,732 93,120 (5,776)
- 91,034 14,136
$ 6,732 $ 184,154 $ 8,360
$ 49,525 $ 83,143 $ (4,833)
- 5,671 -
- (2,175) (714)
- 22,877 (229)
(27,071) 1,963 -
(27,071) 28,336 (943)
$ 22,454 $ 111,479 $ (5,776)
EXHIBIT C-3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 6,081,748 $ 518,010 $ 10,148,229
(5,563,644) (664,900) (7,376,366)
- - (2,272,492)
222,409 18,285 240,694
740,513 (128,605) 740,065
- - (6,436)
- - (15,722)
- - (22,158)
- - 3,105
- - (15,028)
- - (11,923)
182,968 40,082 223,050
923,481 (88,523) 929,034
3,097,768 740,276 3,943,214
$ 4,021,249 $ 651,753 $ 4,872,248
$ 739,950 $ (484,837) $ 382,948
- - 5,671
(113,918) - (113,918)
- - (2,889)
114,481 356,232 493,361
- - (25,108)
563 356,232 357,117
$ 740,513 $ (128,605) $ 740,065
73
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.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2008
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments
Accounts receivable
Accrued interest
Total Assets
LIABILITIES
Accounts payable
Due to other agency
Total Liabilities
EXHIBIT D-1
Balance Balance
Beginning End
of Year Additions Deductions of Year
$ 285,721 $ 236,797 $ 208,133 $ 314,385
- 7,235 - 7,235
- 6,314 6,314 -
$ 285,721 $ 250,346 $ 214,447 $ 321,620
$ 21,317 $ - $ 21,317 $ -
264,404 250,346 193,130 321,620
$ 285,721 $ 250,346 $ 214,447 $ 321,620
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 497,059 $ 148,486 $ - $ 645,545
Accrued interest 4,368 27,563 28,486 3,445
Total Assets $ 501,427 $ 176,049 $ 28,486 $ 648,990
LIABILITIES
Due to other agency
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments
Accounts receivable
Accrued interest
Total Assets
LIABILITIES
Accounts payable
Due to other agency
Total Liabilities
$ 501,427 $ 176,049 $ 28,486 $ 648,990
$ 782,780 $ 385,283 $ 208,133 $ 959,930
- 7,235 - 7,235
4,368 33,877 34,800 3,445
$ 787,148 $ 426,395 $ 242,933 $ 970,610
$ 21,317 $ - $ 21,317 $ -
765,831 426,395 221,616 970,610
74
STATISTICAL SECTION
(UNAUDITED)
CITY OF DUBUQUE, IOWA
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. 76
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 81
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. 85
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. 93
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. 95
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003;
schedules presenting government-wide information include information beginning in that year.
75
CITY OF DUBUQUE, IOWA
NET ASSETS BY COMPONENT
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Table 1
Fiscal Year
2003 2004 2005 2006 2007 2008
Governmental activities
Invested in capital assets,
net of related debt $ 212,767,403 $ 231,863,231 $ 249,881,646 $ 267,762,059 $ 288,978,975 $ 296,143,451
Restricted 29,306,124 31,931,803 24,180,874 21,693,357 23,900,328 31,970,724
Unrestricted 11,528,644 11,322,661 11,236,870 15,132,486 21,921,571 18,987,841
Total governmental
activities net assets $ 253,602,171 $ 275,117,695 $ 285,299,390 $ 304,587,902 $ 334,800,874 $ 347,102,016
Business-type activities
Invested in capital assets,
net of related debt $ 98,706,116 $ 92,301,043 $ 93,036,089 $ 88,802,536 $ 91,483,532 $ 95,104,575
Restricted 553,677 554,005 554,205 554,294 554,318 554,505
Unrestricted 6,308,801 10,502,939 12,854,730 13,258,072 11,214,900 11,312,806
Total business-type
activities net assets $ 105,568,594 $ 103,357,987 $ 106,445,024 $ 102,614,902 $ 103,252,750 $ 106,971,886
Primary government
Invested in capital assets,
net of related debt $ 311,473,519 $ 324,164,274 $ 342,917,735 $ 356,564,595 $ 380,462,507 $ 391,248,026
Restricted 29,859,801 32,485,808 24,735,079 22,247,651 24,454,646 32,525,229
Unrestricted 17,837,445 21,825,600 24,091,600 28,390,558 33,136,471 30,300,647
Total primary government
net assets $ 359,170,765 $ 378,475,682 $ 391,744,414 $ 407,202,804 $ 438,053,624 $ 454,073,902
76
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Table 2
Fiscal Year
2003 2004 2005 2006 2007 2008
Expenses
Governmental activities:
Public safety $ 15,817,052 $ 16,605,481 $ 18,636,877 $ 18,892,980 $ 20,326,724 $ 16,966,210
Public works 14,453,558 12,847,410 17,088,983 16,390,322 16,505,560 18,847,068
Health and social services 815,524 1,290,619 654,469 678,748 759,367 800,566
Culture and recreation 7,367,147 7,849,114 8,474,183 9,627,505 9,837,299 10,857,409
Community and economic
development 9,431,702 12,662,552 9,680,046 8,541,167 11,965,805 11,961,584
General government 4,211,922 3,773,136 4,048,475 3,868,687 4,940,154 5,804,003
Interest on long-term debt 1,605,326 1,248,498 1,298,367 1,460,730 1,400,748 2,577,417
Total governmental activities
expenses 53,702,231 56,276,810 59,881,400 59,460,139 65,735,657 67,814,257
Business-type activities:
Sewage disposal works 4,655,696 5,282,016 4,656,172 5,298,353 5,814,076 6,141,524
Water utility 4,145,983 4,368,738 4,232,489 4,700,483 4,780,063 4,814,692
Stormwater utility - 1,184,968 1,114,811 1,153,628 1,198,675 1,706,735
Parking facilities 1,445,434 1,655,429 1,604,071 1,629,427 1,611,447 2,173,110
America's River Project 414,830 1,064,701 515,570 82,617 434,667 126,699
Refuse collection 2,140,807 2,238,254 2,202,800 2,463,795 2,496,018 2,724,050
Transit system 2,055,248 2,257,078 2,326,908 2,555,080 2,760,459 2,703,983
Total business-type activities
expenses 14,857,998 18,051,184 16,652,821 17,883,383 19,095,405 20,390,793
Total primary government
expenses $ 68,560,229 $ 74,327,994 $ 76,534,221 $ 77,343,522 $ 84,831,062 $ 88,205,050
Program Revenues
Governmental activities:
Charges for services
Public safety $ 1,586,255 $ 1,785,787 $ 1,900,938 $ 1,809,481 $ 1,857,324 $ 2,088,723
Public works 3,367,720 3,392,650 3,371,073 3,370,291 4,839,781 4,061,883
Culture and recreation 2,145,435 2,282,983 2,143,246 2,218,315 2,251,562 2,109,571
Other activities 764,732 873,457 945,712 895,920 1,074,550 1,382,889
Operating grants and contributions 13,677,503 12,197,307 14,603,106 12,902,410 11,641,904 11,709,123
Capital grants and contributions 3,447,052 5,153,258 6,919,296 6,881,573 23,741,282 8,032,602
Total governmental activities
program revenues 24,988,697 25,685,442 29,883,371 28,077,990 45,406,403 29,384,791
Business-type activities:
Charges for services
Sewage disposal works 4,300,156 4,719,491 4,552,587 5,077,491 5,259,432 5,484,079
Water utility 3,975,598 4,307,238 4,224,074 4,669,340 4,743,896 4,875,530
Stormwater utility - 754,101 684,570 928,850 1,227,243 1,766,334
Parking facilities 1,427,146 1,643,490 1,889,937 1,886,642 1,977,757 2,141,607
America's River Project 147,695 881,089 26,061 51,373 3,099 2,140
Refuse collection 1,981,105 2,157,285 2,283,677 2,397,525 2,642,251 2,710,583
Transit system 201,367 319,216 389,106 341,743 237,088 195,817
Operating grants and contributions 880,822 825,538 651,967 920,762 1,167,344 1,209,636
Capital grants and contributions 11,938,797 11,007,676 3,030,378 2,769,657 1,670,874 2,830,263
Total business-type activities
program revenues 24,852,686 26,615,124 17,732,357 19,043,383 18,928,984 21,215,989
Total primary government
program revenues $ 49,841,383 $ 52,300,566 $ 47,615,728 $ 47,121,373 $ 64,335,387 $ 50,600,780
(continued)
77
CITY OF DUBUQUE, IOWA Table 2
CHANGES IN NET ASSETS (continued)
LAST SIX FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003 2004 2005 2006 2007 2008
Net (Expense)Bevenue
Governmental activities
Business-type activities
Total primary government
net expense
General Revenues and Other Changes
in Net Assets
Governmental activities:
General Revenues
Property taxes
Local option sales tax
HoteUmotel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Gain/(loss) on sale of capital assets
Other
Transfers
Total governmental activities
Business-type activities:
General Revenues
Property taxes
Unrestricted investment earnings
Gain/(loss) on sale of capital assets
Transfers
Total business-type activities
Total primary government
Change in Net Assets
Governmental activities
Business-type activities
Total primary government
$ (28,713,534) $ (30,591,368) $ (29,998,029) $ (31,382,149) $ (20,329,254) $ (38,429,466)
9,994,688 8,563,940 1,079,536 1,160,000 (166,421) 825,196
$ (18,718,846) $ (22,027,428) $ (28,918,493) $ (30,222,149) $ (20,495,675) $ (37,604,270)
$ 18,041,049 $ 18,588,367 $ 19,767,492 $ 19,716,620 $ 21,656,908 $ 22,744,563
6,492,203 7,105,183 6,963,124 7,336,124 7,817,403 8,020,889
970,232 1,314,114 1,383,660 1,862,439 1,569,743 1,622,455
- 862,275 1,310,064 1,521,201 1,492,920 1,516,123
9,539,598 11,631,022 11,694,105 14,034,847 15,556,551 15,346,468
1,749,301 497,361 1,190,337 1,081,141 1,870,403 2,741,499
(149,650) 175,231 170,642 77,627 - 92,525
1,228,232 638,681 560,789 572,602 586,931 898,241
(7,720,462) 10,956,246 (1,684,581) 5,033,974 (7,633) (2,252,155)
30,150,503 51,768,480 41,355,632 51,236,575 50,543,226 50,730,608
506,054 - - - - -
321,447 181,674 322,884 339,599 796,636 630,049
(168,001) 25 36 703 - 11,736
7,720,462 (10,956,246) 1,684,581 (5,033,974) 7,633 2,252,155
8,379,962 (10,774,547) 2,007,501 (4,693,672) 804,269 2,893,940
$ 38,530,465 $ 40,993,933 $ 43,363,133 $ 46,542,903 $ 51,347,495 $ 53,624,548
$ 1,436,969 $ 21,177,112 $ 11,357,603 $ 19,854,426 $ 30,213,972 $ 12,301,142
18,374,650 (2,210,607) 3,087,037 (3,533,672) 637,848 3,719,136
$ 19,811,619 $ 18,966,505 $ 14,444,640 $ 16,320,754 $ 30,851,820 $ 16,020,278
78
CITY OF DUBUQUE, IOWA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SIX FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Table 3
Fiscal Year
2003 2004 2005 2006 2007 2008
General Fund
Reserved $ 4,573,723 $ 3,233,335 $ 3,169,453 $ 1,477,141 $ 4,455,303 $ 1,699,825
Unreserved 12,218,787 13,685,063 13,706,134 16,050,997 17,827,631 17,982,016
Total general fund ~l6.792.510 X16.918398 X16.875.587 X17.528.138 X22282.934 $19.681.841
All Other Governmental Funds
Reserved $14,525,251 $14,231,390 $13,607,759 $15,564,016 $13,942,519 $31,887,038
Unreserved, reported in:
Special revenue funds 11,886,631 9,720,412 5,777,233 7,277,471 7,586,898 7,431,931
Debt service fund - (68,569) (56,320) - - -
Capitalprojectsfunds 5,846,016 7,353,593 11,191,461 (981,248) 4,195,354 7,875,448
Permanent funds 70,091 71,373 73,628 83,367 115,825 33,958
Total all other governmental funds X32327.989 $31.308.199 X30.593 761 X21.943.606 25.840.596 X47228375
79
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST SIX FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Table 4
Fiscal Year
2003 2004 2005 2006 2007 2008
Revenues
Taxes $ 25,508,936 $ 27,861,273 $ 29,430,135 $ 30,043,167 $ 32,526,525 $ 33,898,692
Special assessments 561,406 717,305 197,195 322,214 586,459 177,585
Licenses and permits 753,990 1,063,081 1,078,722 965,712 1,052,896 1,153,429
Intergovernmental 17,249,290 17,057,994 18,370,358 15,021,722 16,744,703 14,256,523
Charges for services 5,325,031 5,666,307 5,918,542 6,620,243 7,351,191 7,833,151
Fines and forfeits 465,787 241,572 267,536 204,201 158,360 188,603
Investment earnings 1,750,519 502,932 1,197,691 1,096,445 1,913,420 2,731,953
Contributions 447,960 345,415 306,809 246,908 1,168,463 6,134,002
Gaming 9,539,598 11,631,022 11,694,105 14,034,847 15,556,551 15,346,468
Miscellaneous 1,312,348 1,139,057 1,573,305 1,106,991 1,149,546 1,269,376
Total revenues 62,914,865 66,225,958 70,034,398 69,662,450 78,208,114 82,989,782
Expenditures
Current
Public safety 15,278,654 16,764,510 18,652,246 19,535,369 20,743,196 21,542,661
Public works 11,860,004 10,723,527 21,301,239 11,605,567 12,506,378 16,331,107
Health and social services 749,435 721,906 662,231 715,598 783,209 797,644
Culture and recreation 7,515,522 7,470,264 8,180,832 9,998,462 10,244,244 10,277,787
Community and economic development 9,010,868 11,924,011 9,825,470 9,981,645 11,695,902 11,847,512
General government 3,835,609 4,227,335 4,022,785 4,090,866 4,441,043 6,310,939
Debt service
Principal 2,009,986 2,117,773 1,769,960 1,325,970 1,663,339 1,762,375
Interest 1,668,019 1,304,802 1,240,427 1,493,504 1,412,012 2,406,431
Capital projects 9,930,311 6,865,119 8,226,840 14,528,340 8,227,257 15,351,848
Total expenditures 61,858,408 62,119,247 73,882,030 73,275,321 71,716,580 86,628,304
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of bonds
Issuance of refunding bonds
Discount on bonds
Payment to refunded bonds escrow agent
Transfers in
Transfers out
Sale of capital assets
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital
expenditures
1,056,457 4,106,711 (3,847,632) (3,612,871) 6,491,534 (3,638,522)
- - - 13,682 743,591
150,000 795,000 7,277,665 1,515,750 -
- - (58,487) - -
(150,000) - - (1,494,371) -
5,367,986 8,662,300 12,981,655 7,334,605 10,394,726
(21,073,805) (15,060,669) (16105184) (11,904,890) (11,789,548)
117,239 264,344 170,642 150,491 2,811,483
(15,588,580) (5,339,025) 4,266,291 (4,384,733) 2,160,252
$~14 532 123) ~ (12323141 ~ 418 659 ~ (7.997.6041 ~ 8.651.786
7.37% 6.32% 5.46% 4.99% 5.01%
23,083,696
2,965,000
(266158
(2,875,000
14,801,589
(18185109
2,901,190
22,425,208
$ 18.786.686
6.55%
80
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Real Property Exemptions Total
Levy Fiscal Taxable Assessed Taxable Assessed
Year Year Value Value Real Property Value Value
1997 1999 $ 1,354,421 $ 1,987,466 $ 10,319 $ 1,344,102 $ 1,987,466
1998 2000 1,389,352 1,990,428 10,018 1,379,334 1,990,428
1999 2001 1,377,518 2,014,897 10,194 1,367,324 2,014,897
2000 2002 1,429,025 2,050,019 10,097 1,418,928 2,050,019
2001 2003 1,540,206 2,317,926 10,141 1,530,065 2,317,926
2002 2004 1,572,776 2,350,317 9,694 1,563,082 2,350,317
2003 2005 1,666,033 2,575,400 9,599 1,656,434 2,575,400
2004 2006 1,710,334 2,679,078 9,862 1,700,472 2,679,078
2005 2007 1,780,354 2,804,568 9,122 1,771,232 2,804,568
2006 2008 1,823,304 2,870,178 8,939 1,814,365 2,870,178
Table 5
Ratio of Total
Taxable Value to
Total Assessed Total Direct
Value Tax Rate
67.63 11.07340
69.30 10.71601
67.86 11.06712
69.22 10.76080
66.01 10.21200
66.51 10.27303
64.32 10.07200
63.47 9.69910
63.16 9.98030
63.21 10.31690
81
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(TAX RATES PER $1,000 ASSESSED VALUE)
Dubuque
Levy Fiscal Dubuque School
Year Year C ity Dis trict
1997 1999 $ 11. 07340 $ 11 .98226 $
1998 2000 10. 71601 11 .53111
1999 2001 11. 06712 12 .17096
2000 2002 10. 76080 13 .50444
2001 2003 10. 21200 13 .73882
2002 2004 10. 27303 13 .84768
2003 2005 10. 07200 14 .27491
2004 2006 9. 69910 15 .09695
2005 2007 9. 98033 15 .92538
2006 2008 10. 31690 16 .40925
Board of
Education and Area 1 Voc. Dubuque
Independents Tech County To tal
0.50368 $ 0.48592 $ 5.52169 $ 29 .56695
0.56187 0.55128 5.54016 28 .90043
0.50467 0.56995 5.60750 29 .92020
0.54806 0.57072 5.73669 31 .12071
0.55492 0.57507 5.60064 30 .68145
0.61686 0.57791 5.59515 30 .91063
0.57269 0.59804 6.08923 31 .60687
0.60226 0.60517 6.08416 32 .08764
0.60802 0.61127 6.17924 33 .30424
0.63160 0.61270 6.42691 34 .39736
Source: Dubuque County Auditor's Office.
Table 6
Ratio of
Dubuque City
to Total
37.45
37.08
36.99
34.58
33.28
33.23
31.87
30.23
29.97
29.99
82
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
Table 7
2008 1999
Percentage of Percentage of
Total City Total City
Taxable Taxable
Taxable Assessed Taxable Assessed
Taxuaver Assessed Value Rank Value Assessed Value Rank Value
Kennedy Mall $ 26,372 1 .92 % $ 19,990 3 1.13
Otto A LLC 17,500 2 .61
Nordstrom, Inc. 16,834 3 .59 12,854 4 .72
Medical Associates Realty 13,631 4 .47 9,955 5 .56
McGraw Hill 11,437 5 .40 7,366 9 .41
Walter Development 11,288 6 .39
Platinum Holdings 11,179 7 .39
Minglewood Limited Partnership 9,948 8 .35
American Trust & Savings Bank 9,947 9 .35 7,278 10 .41
Asbury Dubuque 9,896 10 .34
Plaza 20 Inc. 7,861 8 .44
Interstate Power Comparry 53,944 1 3.04
Peoples Natural Gas 20,395 2 1.15
A.Y. McDonald Manufacturing Co. 8,150 7 .46
U. S. West Communications 9,199 6 .52
$ 138032 4.81% $ 156992 8.84%
Effective 2001 utility companies (Alliant Energy/Interstate Power and Aqu ila Natural Gas) pay excise tax on re venue to the state
rather than property taxes.
Source: Dubuque County Auditor's Office
83
CITY OF DUBUQUE, IOWA Table 8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Ratio of Total
Tax Ratio of
Percent of Delinquent Collections to Outstanding Delinquent
Fiscal Total Tax Current Tax Current Taxes Tax Total Tax Total Tax Delinquent Taxes to Total
Year Levy (1) Collections Collected Collections Collections (2) Levy Taxes Tax Levy
1999 16,587 16,528 99.6 121 16,649 100.4 129 0.8
2000 16,497 16,380 99.3 115 16,495 100.0 138 0.8
2001 17,163 16,662 97.1 120 16,782 97.8 150 0.9
2002 17,147 16,941 98.8 127 17,068 99.5 238 1.4
2003 15,328 15,215 99.3 216 15,431 100.7 130 0.8
2004 16,208 15,937 98.3 11 15,948 98.4 207 1.3
2005 16,408 16,383 99.8 20 16,403 100.0 196 1.2
2006 16,229 16,146 99.5 2 16,148 99.5 182 11
2007 17,216 17,193 99.9 4 17,197 99.9 174 1.0
2008 18,211 18,160 99.7 3 18,163 99.7 215 1.2
(1) Includes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
84
CITY OF DUBUQUE, IOWA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Table 9
Governmental Activities Business-Type Activities
Tax Tax
General Increment Increment General Percentage Per
Fiscal Obligation Financing Financing Obligation Capital Loan Revenue Total Primary of Personal Capita
Year Bonds Bonds Notes Bonds Notes Bonds Government Income (1) (1)
1999 $ 5,300,000 $ 2,445,500 $ - $ 1,890,000 $ - $ 2,210,000 $ 11,845,500 0.86% 210
2000 4,522,500 4,378,669 - 3,572,500 - 2,055,000 14,528,669 1.00% 257
2001 3,405,000 5,963,585 - 9,005,000 - 1,890,000 20,263,585 1.34% 351
2002 20,945,000 5,873,155 - 3,105,000 - 1,720,000 31,643,155 2.05% 549
2003 19,865,000 4,943,169 - 5,140,000 - 1,540,000 31,488,169 1.98% 546
2004 19,010,000 3,820,394 655,000 6,660,000 - 1,350,000 31,495,394 1.85% 546
2005 24,960,000 3,450,820 622,211 8,090,000 - 1,150,000 38,273,031 2.16% 663
2006 24,165,750 3,040,304 590,439 11,619,250 - 940,000 40,355,743 2.17% 700
2007 22,990,000 2,594,831 1,279,885 11,090,000 - 720,000 38,674,716 2.01% 670
2008 21,860,000 25,136,402 1,279,636 11,570,000 611,977 490,000 60,948,015 * 1,057
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.
85
CITY OF DUBUQUE, IOWA Table l0
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS, EXCEPT PER CAPITA AMOUNT)
General Percentage of Percentage of
Fiscal Obligation Taxable Value Taxable Value of Assessed Value Assessed Value Per
Year Bonds (1) of Property Property of Property of Property Capita
1999 $ 5,300 $ 1,344,102 0.39% $ 1,987,466 0.27% 94
2000 4,523 1,379,334 0.33% 1,990,428 0.23% 80
2001 3,405 1,367,324 0.25% 2,014,897 0.17% 59
2002 20,945 1,418,928 1.48% 2,050,019 1.02% 363
2003 19,865 1,530,057 1.30% 2,317,926 0.86% 344
2004 19,010 1,563,082 1.22% 2,350,317 0.81% 330
2005 24,960 1,656,434 1.51% 2,575,400 0.97% 433
2006 24,166 1,700,472 1.42% 2,679,078 0.90% 419
2007 22,990 1,771,232 1.30% 2,804,568 0.82% 399
2008 21,860 1,814,365 1.20% 2,870,178 0.76% 379
(1) Excludes general obligation bonds reported in enterprise funds.
86
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2008
Jurisdiction
Direct, City of Dubuque, Iowa
Overlapping:
Dubuque County
Dubuque Public School District
Northeast Iowa Community College
Total Overlapping
Total
Net (Ueneral
Obligation
Bonded Debt
Outstanding
Percentage
Applicable
to City
Table 11
Amount
Applicable to
Government
$ 21,860,000 (1) 100.00% $ 21,860,000
1,380,000
1,080,000
2,460,000
$ 24,320,000
Source: Dubuque County Auditor and Northeast Iowa Community College
(1) Excludes general obligation bonds reported in enterprise funds.
$ 22,897,015
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of
the City. This schedule estimates the portion of the outstanding debt of those overlapping governments
that is borne by the residents and businesses of Dubuque. This process recognizes that, when considering
the City's ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt of each overlapping government.
57.34 791,268
22.75 245,747
1,037,015
87
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Debit limit
Total net debt
applicable to limit
Legal debit margin
The net debt
applicable to the debt
limit as a percentage
of debt limit
Table 12
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008
$ 99,373 $ 99,521 $ 100,745 $ 102,359 $ 115,896 $ 117,516 $ 133,149 $ 138,789 $ 145,401 $ 148,824
8,545 10,511 18,687 30,250 30,271 30,185 37,177 39,443 38,060 60,485
$ 90,828 $ 89,010 $ 82,058 $ 72,109 $ 85,625 $ 87,331 $ 95,972 $ 99,346 $ ]07,34] $ 88,339
8.60% 10.56% 18.55% 29.55% 26.12% 25.69% 27.92% 28.42% 26.18% 40.64%
Legal Debt Margin Calculation for Fiscal Year 2008
Estimated actual value $ 2,976,480,060
Debt limit - 5% of total actual valuation $ 148,824,003
Debt applicable to limit
(Tncluding GO Debt, TTF Debt, and Lease
Obligations Paid from General Fund) 60,484,713
Legal debt margin $ 88,339,290
CITY OF DUBUQUE, IOWA
REVENUE BOND COVERAGE
PARHING BONDS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Table 13
Net
Revenue
Available
Fiscal Gross Operating For Debt Debt Service Requirements
Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage (3)
1999 $ 1,303 $ 584 $ 719 $ 155 $ 98 $ 253 2.84
2000 1,278 582 696 165 93 258 2.70
2001 1,552 717 835 170 86 256 3.26
2002 1,452 737 715 180 79 259 2.76
2003 1,484 847 637 190 71 261 2.44
2004 1,659 971 688 200 63 263 2.62
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
(1) Total revenues (including interest).
(2) Total operating expenses, exclusive of depreciation.
(3) Coverage is computed by dividing net revenue available for debt service by debt service
requirements. Bond ordinance requires 1.3 minimum coverage.
89
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
Fiscal Year Water Receipts Sewer Receipts
1999 $ 3,770,976 $ 4,806,765
2000 4,055,270 4,834,413
2001 4,135,930 4,387,111
2002 4,233,908 4,319,655
2003 4,154,899 4,252,098
2004 4,350,338 4,466,035
2005 4,340,789 4,478,205
2006 4,798,408 4,920,376
2007 4,856,353 5,276,454
2008 5,020,001 5,481,074
Source: Cash basis receipt ledgers.
Table 14
90
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST THREE FISCAL YEARS
Fiscal
Table 15
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
*Prior seven years information not available.
91
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2008
Customer
Rousselot Inc.
Swiss Valley Farms
Mercy Medical Center
Alliant Power Compairy
Jeld-Wen
Finley Hospital
Clarke College
Loras College
City of Dubuque Sewer Treatment
Premier Linen & Dry Cleaning
Inland Protein Corporation
Western Dubuque Biodiesel
Tablemound Mobile Home Park
Total Receipts
Percentage of
Water Total Water Sewer
Receipts Rank Receipts Receipts
$ 185,763 1 3.70 % $ 345,941
57,357 2 1.14 194,950
56,450 3 1.12 81,875
49,560 4 0.99
37,782 5 0.75
31,495 6 0.63 42,389
31,203 7 0.62 40,555
29,628 8 0.59 48,190
29,096 9 0.58
29,011 10 0.58 45,533
117,438
52,389
43,665
$ 5,020,001 $ 5,481,074
Table 16
Percentage of
Total Sewer
Rank Receipts
1 6.31
2 3.56
4 1.49
9 0.77
10 0.74
6 0.88
7
3
5
8
0.83
2.14
0.96
0.80
92
CITY OF DUBUQUE, IOWA Table 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Public
Per Capital School
Personal Median Enrollment Unemployment
Year Population Personal Income Income (1) Age (2) (3) Rate (4)
1999 56,467 $ 2,173,097,000 $ 24,435 34 9,735 2.6
2000 56,467 2,293,137,000 25,691 34 9,697 2.7
2001 57,686 2,345,539,000 26,309 34 9,680 4.0
2002 57,686 2,421,441,000 26,760 37 9,906 3.9
2003 57,686 2,491,982,000 27,631 37 10,122 4.0
2004 57,686 2,695,504,000 29,549 37 10,428 4.4
2005 57,686 2,807,625,000 30,650 37 10,547 4.5
2006 57,686 2,983,000,000 32,290 37 10,733 3.5
2007 57,686 3,074,666,000 33,290 37 10,727 3.7
2008 57,686 * * 38 10,614 3.8
Sources:
(1) U. S. Department of Commerce, Bureau of Economic Analysis.
(2) Bureau of Census: 2000 Census.
(3) Dubuque Community School District.
(4) Iowa Department of Employment Services as of June 30.
* Unavailable at report date.
93
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND YEAR 2000
2008
2000
Table 18
Percentage of Percentage of
# of Total City # of Total City
Emnlover Employees Rank Employment (1) Employees Rank Employment (1)
John Deere (2) 1,800 1 3.44 % 2,250 1 4.64
Dubuque Community Schools 1,627 2 3.10 1,500 2 3.10
Mercy Medical Center 1,324 3 2.53 1,500 2 3.10
Finley Hospital 920 4 1.76 850 8 1.75
Eagle Window & Door 750 5 1.43 450 10 .93
Medical Associates 743 6 1.42 950 6 1.96
City of Dubuque 604 7 1.15
Prudential Retirement 550 8 1.05
Holy Family Catholic Schools 500 9 .95
Flexsteel 450 10 .86 825 9 1.70
Dubuque County 450 10 .86
Farmland Foods 1,300 4 2.68
Times Mirror (Formerly Wm C. Brown) 1,000 5 2.06
Interstate Power Company 930 7 1.92
9,718
11,555
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.
2000 is the closest year to 1998 with employment information available.
94
CITY OF DUBUQUE, IOWA
FULL-TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
Full-Time Equivalent Employees as of June 30
1999 2000 2001 2002 2003 2004 2005
Public Safety
Table 19
2006 2007 2008
Emergency Communications 9.00 9.00 10.00 10.00 10.00 10.00 10.00 11.00 11.00 11.00
Fire 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00
Police 90.00 95.00 95.00 96.00 97.00 97.00 97.00 99.00 100.00 101.00
Building Services 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00
Public Works
Public Worlcs 80.00 81.00 81.00 83.00 86.02 87.30 88.55 87.00 87.00 87.00
Engineering 22.00 22.00 24.00 24.00 24.00 24.00 24.00 25.00 25.00 25.00
Health & Social Services
Health Services 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.00
Human Rights 2.00 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00
Culture and Recreation
Civic Center 9.15 9.15 9.15 9.15 9.15 9.15 9.15 1.15 0.15 0.15
Library 17.00 17.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00
Park 20.92 20.92 20.92 21.92 21.92 21.92 21.92 21.92 21.92 21.92
Recreation 8.93 8.93 8.93 8.93 8.93 8.93 8.93 8.93 7.93 7.93
Community & Economic Development
Community /Economic Dev 5.00 5.00 5.00 5.00 3.00 3.00 3.00 3.00 3.00 3.00
Housing Services 18.00 18.00 18.00 20.00 20.25 20.00 21.00 21.00 20.25 18.00
Planning Services 7.00 7.00 7.00 7.00 7.00 7.00 7.00 8.00 8.00 8.00
General Government
Airport 13.00 l 3.00 13.00 ] 3.00 14.00 l 3.00 13.00 13.00 l 3.23 12.00
Cable TV 3.00 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00
City Clerk's Office 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
City Manager's Office 9.00 9.00 9.00 9.00 11.00 10.00 10.00 11.00 11.00 11.00
Finance 16.00 16.00 16.00 16.00 16.00 15.00 14.00 14.00 14.00 14.00
Legal 2.00 2.00 2.00 2.00 2.00 2.00 2.00 2.62 3.00 3.00
Information Services 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 7.00
Business Type
Water 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00
Water Pollution Control 19.00 19.00 19.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00
Parking 8.00 8.00 9.00 11.00 11.50 10.50 10.50 8.00 8.00 7.00
Transit 12.00 12.00 12.00 7.50 8.00 7.00 7.00 8.55 8.00 7.00
Total 505.00 511.00 516.00 518.50 523.77 519.80 521.05 518.17 516.48 512.00
Source: City Budget Records.
Departments with employees who are allocated to more than one function are reflected in area with largest number of employees
cJ,
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
1999 2000 2001 2002 2003
Public Safety
Police
Physical arrestsl 2,825 2,807 2,564 - 4,000
Traffic violationsZ - - - 2,462 2,126
Parking violations3 - - - - 51,162
Fire
Number of calls answered 3,336 3,158 3,736 4,774 3,974
Inspections conducted 742 829 805 841 524
Sewer
Sewage system
Daily average treatment in gallons 10,200,000 10,200,000 9,000,000 9,000,000 8,000,000
Maximum daily capacity of treatment
plant in gallons 15,000,000 15,000,000 15,000,000 15,000,000 15,000,000
Water systems
Daily average consumption in gallons 8,519,740 8,000,000 8,000,000 8,000,000 8,000,000
Maximum daily capacity of plant in
gallons 18,000,000 18,000,000 18,000,000 18,000,000 18,000,000
Refuse (Municipal Collection)
Tonnage 14,171 14,279 13,979 13,594 10,435
Sources: Various City Departments.
' Statistics not available for fiscal year 2002.
z Statistics begin in fiscal year 2002.
s Statistics begin in fiscal year 2003.
Table 20
Fiscal Year
2004 2005 2006 2007 2008
4,550 4,795 4,790 5,078 5,090
2,427 2,171 2,111 1,986 6,881
49,985 51,004 46,575 42,530 40,741
4,181 4,300 4,176 4,454 4,699
408 1,135 409 360 624
8,000,000 8,500,000 8,500,000 8,000,000 10,310,000
15,000,000 13,500,000 13,500,000 13,500,000 13,500,000
8,000,000 7,720,000 7,360,000 7,647,685 5,793,309
18, 000, 000 18, 000, 000 18, 000, 000 18, 000, 000 17, 000, 000
10,330 10,428 10,573 10,807 11,798
96
CITY OF DUBUQUE, IOWA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Public safety
Police
Stations
Patrol units
Fire
Stations
Aerial trucks
Public works
Streets
Miles (1)
Street lights (1)
Health and social services
Hospital
Number of patient beds
Cultural and recreation
Library
Golf
Parks
Acreage
Recreation
Civic center
Swimming pools
Softball fields
Baseball fields
Tennis courts
Sewer
Sewage system
Miles of sanitary sewer (1)
Miles of storm sewers (1)
Number of treatment plants
Number of service connectors
Water systems
Miles of water mains
Number of service connectors
Number of city owned fire hydrants
Sources: Various City Departments.
(1) City GIS System (* information not available).
Fiscal Year
1999 2000 2001 2002 2003
1 1 1 1 1
18 18 18 18 18
6 6 6 6 6
3 3 3 3 3
* * * * 273
* * 1,191 1,195 1,500
2 2 2 2 2
649 478 478 478 584
1 1 1 1 1
1 1 1 1 1
33 38 38 39 42
741 833 833 834 850
1 1 1 1 1
2 2 2 2 2
7 7 7 7 7
1 1 1 1 1
20 20 20 20 20
* * * * *
* * * * *
1 1 1 1 1
20,000 20,550 20,550 20,200 20,800
250 301 302 305 305
20,000 21,130 21,000 20,550 21,032
2,004 2,635 2,685 2,712 2,713
Table 21
Fiscal Year
2004 2005 2006 2007 2008
1 1 1 1 1
18 19 19 19 19
6 6 6 6 6
3 3 3 3 3
290 290 295 307 317
1,591 1,631 1,755 1,802 1,855
2 2 2 2 2
560 421 421 405 405
1 1 1 1 1
1 1 1 1 1
42 44 44 47 47
850 855 845 898 898
1 1 1 1 1
2 2 2 2 2
7 7 7 8 7
1 1 1 1 1
20 20 19 19 20
* * 263 286 290
* * 116 120 122
1 1 1 1 1
21,000 21,000 21,443 21,568 21,633
310 312 313 315 316
21,206 21,016 21,257 21,210 21,243
2,736 2,770 2,780 2,798 2,812
97
COMPLIANCE SECTION
CITY OF DUBUQUE, IOWA
~. c~
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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 A UDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the discretely presented component unit, each major fund, and the aggregate remaining fund
information of the City of Dubuque, Iowa, as of and for the year ended June 30, 2008, which collectively
comprise the City's basic financial statements and have issued our report thereon dated December 16,
2008. We conducted our audit in accordance with auditing standards generally accepted in the United
States of America and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Rebortin~
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing our opinion on the effectiveness of the City's internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City's internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and would not necessarily identify all deficiencies in the internal control over
financial reporting that might be significant deficiencies or material weaknesses. However, as discussed
below, we identified certain deficiencies in internal control over financial reporting that we consider to be
significant deficiencies, including a deficiency we consider to be a material weakness.
A control deficiency exists when the design or operation of the control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the City's ability to initiate, authorize, record, process, or
report financial data reliably in accordance with accounting principles generally accepted in the United
States of America such that there is more than a remote likelihood a misstatement of the City's financial
statements that is more than inconsequential will not be prevented or detected by the City's internal
control. We consider the deficiencies in internal control described in Part II of the accompanying
Schedule of Findings and Questioned Costs to be significant deficiencies in internal control over financial
reporting.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood a material misstatement of the financial statements will not be prevented or
detected by the City's internal control.
,,.. b n ~ ..... ...........
~~~~',~ V''~a'rob.r~~~+rc~p'wl¢'r /hv~ , ~7~W,1. ~C.tl ~ aak'ao~a°.~u~, luwwar ~i~"d,V(;o~~~.. "~ ~ I'~'Va~~r~ti~ ~~"y~~,.ro,r~r.lJ¢r~~l ~ F'c~~ ~it„r.$.wrow~J.~k"~rCd. N F~„;Dka'.
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in the internal control
that might be significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. However, of the significant deficiencies
described above, we believe item II-A-08 is a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, non-compliance 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 non-compliance or other matters that are required to be
reported under GovernmentAuditing Standards.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2008, are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City and are reported in Part III 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.
The City's responses to findings identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs. While we have expressed our conclusions on the City's responses, we did
not audit the City's responses, and accordingly, we express no opinion on them.
We noted certain matters that we reported to management of the City of Dubuque, Iowa, in a separate
letter dated December 16, 2008.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque,
Iowa, may report, including federal awarding agencies and pass-through entities. This report is not
intended to be and should not be used by anyone other than these specified parties.
We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City
of Dubuque, Iowa, during the course of our audit. Should you have any questions concerning any of the
above matters, we shall be pleased to discuss them with you at your convenience.
-,, <<~
Dubuque, Iowa
December 16, 2008
99
/ ' ~ s,wi
."".~"
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND ON INTERNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Compliance
We have audited the compliance of the City of Dubuque, Iowa, with the types of compliance
requirements described in the U.S. Office of Management and Budget (OMB) Circular A-133
Compliance Supplement that are applicable to each of its major federal programs for the year ended
June 30, 2008. The City's major federal programs are identified in the summary of the independent
auditor's results section of the accompanying Schedule of Findings and Questioned Costs. Compliance
with the requirements of laws, regulations, contracts, and grant agreements applicable to each of its major
federal programs is the responsibility of the City's management. Our responsibility is to express an
opinion on the City's compliance based on our audit.
We conducted our audit of compliance in accordance with auditing standards generally accepted in the
United States of America; the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States; and 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 non-compliance
with the types of compliance requirements referred to above that could have a direct and material effect
on a major federal program occurred. An audit includes examining, on a test basis, evidence about the
City's compliance with those requirements and performing such other procedures as we considered
necessary in the circumstances. We believe that our audit provides a reasonable basis for our opinion. Our
audit does not provide a legal determination on the City's compliance with those requirements.
In our opinion, the City of Dubuque, Iowa, complied, in all material respects, with the requirements
referred to above that are applicable to each of its major federal programs for the year ended June 30,
2008.
Internal Control Over Compliance
The management of the City of Dubuque, Iowa, is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts, and grant agreements
applicable to federal programs. In planning and performing our audit, we considered the City's internal
control over compliance with requirements that could have a direct and material effect on a major federal
program in order to determine our auditing procedures for the purpose of expressing our opinion on
compliance, 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.
~'E~P~~. f~~~l'CI~~L~~. ~~~~IILI'8~~~..
100
... ~'_....re~,}~Rv~aw~a'ia~~t «Mva~ , ;ykr~~. '~ k~C~ ~ ~}auk~rar~u.ac~p ICi~ _. _ . .~ ~ P'~remvrs . . ~. '~,~C„) ~ Fr~sx :vd'~ ~.„~"a~~.l'~V 1~ ~ [:~~~:.
A control deficiency in the City's internal control over compliance 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 non-compliance with a type of compliance requirement of a federal
program on a timely basis. A significant deficiency is a control deficiency, or combination of control
deficiencies, that adversely affects the City's ability to administer a federal program such that there is
more than a remote likelihood that non-compliance with a type of compliance requirement of a federal
program that is more than inconsequential will not be prevented or detected by the City's internal control.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood that material non-compliance with a type of compliance requirement of a
federal program will not be prevented or detected by the City's internal control.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and would not necessarily identify all deficiencies in internal control that might
be significant deficiencies or material weaknesses. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses, as defined above.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque,
Iowa, may report, including federal awarding agencies and pass-through entities. This report is not
intended to be and should not be used by anyone other than these specified parties.
~-,, <<~
Dubuque, Iowa
December 16, 2008
101
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
CFDA Agency or Program
Grantor/Pro~ram Number Pass-through Number Expenditures
Direct:
Department of Housing and Urban Development:
Community Development Block Grants/
Entitlement Grants 14.218 B-OS-MC-19-0004 $ 1.199.696
Community Development Block Grants/
Special Purpose Grants/Insular Areas 14.225 IAOSSPG23 48.318
Shelter Plus Care 14.238 IA26C601021 5.482
Fair Housing Assistance Program -State
and Local 14.401 FF207K077006 26.700
Lower Income Housing Assistance
Program -Section 8 Moderate
Rehabilitation 14.856 KC-9004MR-002 1,112
Lower Income Housing Assistance
Program -Section 8 Moderate
Rehabilitation 14.856 KC-9004MR-005 58.474
59.586
Section 8 Housing Choice Vouchers 14.871 KC-9004V 4244.775
Lead-Based Paint Hazard Control in
Privately-Owned Housing 14.900 IALHB0375-07 225,099
Department of Justice:
Bulletproof Vest Partnership Program 16.607 2006BUBX050 2,529
Bulletproof Vest Partnership Program 16.607 2005BUBX050 8
2.537
Department of Transportation:
Airport Improvement Program 20.106 3-19-0028-43 47,531
Airport Improvement Program 20.106 3-19-0028-38 22,909
Airport Improvement Program 20.106 3-19-0028-42 16,316
Airport Improvement Program 20.106 3-19-0028-44 30,247
117.003
Federal Transit -Capital Investment Grants 20.500 IA-90-X339-00 947,561
Department of Homeland Security:
Assistance to Firefighters Grant 97.044 EMW-2006-FG-07317 394.081
Total Direct 7270.838
(continued)
102
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
Grantor/Pro~ram
CFDA Agency or
Number Pass-through Number
Program
Expenditures
Indirect:
Department of Housing and Urban Development:
Iowa Department of Economic Development:
Community Development Block Grants/
Entitlement Grants 14.218 03-CDTA-DUB
Department of the Interior:
State Historical Society of Iowa:
Historic Preservation Fund Grants-In-Aid 15.904 2007-02
Department of Justice:
Attorney General's Crime Victim Assistance
Division:
Violence Against Women Formula Grants 16.588 VW-08-24C
Dubuque County, Iowa:
Public Safety Partnership and Community
Policing Grants
Helping Services for Northeast Iowa, Inc.:
Enforcing Underage Drinking Laws
Program
Enforcing Underage Drinking Laws
Program
16.710 07 JAG/C06-A16
16.727 20-JD06-F07
16.727 20-JD04-F506
$ 15.000
8200
2.104
7.315
5,196
2.730
7,926
20,619
Dubuque County, Iowa:
Edward Byrne Memorial Justice Assistance
Grant Program 16.738 07 JAG/C06-F07
Department of Transportation:
Iowa Department of Transportation:
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Capital Assistance Program for Elderly
Persons and Persons with Disabilities
Job Access -Reverse Commute
20.205 STP-ES-2100(617)- -8I-31
20.205 STP-U-2100(635)- -70-31
20.205 STP-U-2100(634)- -70-31
20.205 STP-E-2100(631)- -8V-31
20.205 STP-E-2100(628)- -8V-31
20.205 STP-A-020-9(187)- -22-31
20.205 STP-A-020-9(186)- -22-31
20.205 STP-U-2100(623)- -70-31
20.205 STP-E-2100(618)- -8V-31
20.205 ER-2100-(636)- -58-31
20.513 16-X001-210-07
20.516 37-X006-210-01
32,280
151,268
761,709
28,412
144,842
59,272
201,098
1,004,667
39,999
223.544
2.647.091
28.623
33.912
(continued)
103
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
CFDA Agency or
Grantor/Pro~ram Number Pass-through Number
Indirect: (continued)
Department of Transportation: (continued)
Governor's Traffic Safety Bureau:
State and Community Highway Safety 20.600 PAP 08-03, TASK 06
State and Community Highway Safety 20.600 07-04, TASK 12
Safety Incentives to Prevent Operation
of Motor Vehicles by Intoxicated
Persons 20.605 PAP 07-163, TASK 27
Environmental Protection Agency:
Iowa Finance Authority:
Capitalization Grants for Clean Water
State Revolving Funds 66.458 PD-CW-06-41
Capitalization Grants for Clean Water
State Revolving Funds 66.458 PD-CW-06-39
Department of Health and Human Services:
Iowa Department of Public Health:
Childhood Lead Poisoning Prevention
Projects -State and Local Childhood
Lead Poisoning Prevention and
Surveillance of Blood Lead Levels in
Children 93.197 5888LP05
Childhood Lead Poisoning Prevention
Projects -State and Local Childhood
Lead Poisoning Prevention and
Surveillance of Blood Lead Levels in
Children 93.197 5887LP05
Centers for Disease Control and Prevention -
Investigations and Technical Assistance 93.283 3107
Corporation for National and Community
Service:
Iowa Commission on Volunteers:
AmeriCorps
Department of Homeland Security:
Iowa Department of Public Defense:
Disaster Grants -Public Assistance
Total Indirect
Total
94.006 07-AF-13
97.036 FEMA-DR-1763-
DR-IA
See notes to the Schedule of Expenditures of Federal Awards.
Program
Expenditures
$ 25,640
5.360
31,000
14.347
20,414
3,271
23.685
19,057
2.875
21.932
7.772
109.479
94.870
3.073.875
$ 10.344.713_
104
CITY OF DUBUQUE, IOWA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2008
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 accrual basis of accounting. The information on this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule
may differ from amounts presented in, or used in the preparation of, the 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:
Program Title
Federal Amount Provided
CFDA Number to subrecipients
Community Development Block Grants/
Entitlement Grants 14.218 $ 232,060
105
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2008
Part I: Summary of the Independent Auditor's Results:
(a) Unqualified opinions were issued on the financial statements.
(b) Significant deficiencies in internal control over financial reporting were disclosed by the audit
of the financial statements, including a material weakness.
(c) The audit did not disclose any non-compliance which is material to the financial statements.
(d) No material weaknesses in internal control over the major programs were noted.
(e) An unqualified opinion was issued on compliance with requirements applicable to the major
programs.
(f) The audit disclosed no audit findings which were required to be reported in accordance with the
Office of Management and Budget Circular A-133, Section .510(a).
(g) The major programs were:
• CFDA Number 14.871 -Section 8 Housing Choice Vouchers
• CFDA Number 97.044 -Assistance to Firefighters Grant
(h) The dollar threshold used to distinguish between Type A and Type B programs was $310,341
(i) The City of Dubuque, Iowa, qualified as a low-risk auditee.
Part II: Findings Related to the Financial Statements:
SIGNIFICANT DEFICIENCY/MATERIAL WEAKNESS
II-A-08 Preparation of Financial Statements - As auditors, we were requested to draft the
financial statements and accompanying notes to the financial statements. It is the
responsibility of management and those charged with governance to make the decision
whether to accept the degree of risk associated with this condition because of cost or
other considerations.
Recommendation - We recognize that with a limited number of office employees,
preparation of the financial statements is difficult. However, we recommend that City
officials continue reviewing operating procedures in order to obtain the maximum
internal control possible under the circumstances.
Response -The American Institute of Certified Public Accountants implemented new
auditing standards in 2007. There have been no changes in City procedures. A cost
benefit analysis reflects that the City continue with the current contractual agreement that
the CPA firm prepare our financial statements.
Conclusion -Response accepted.
106
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2008
Part IL• Findings Related to the Financial Statements: (continued)
SIGNIFICANT DEFICIENCY
II-B-08 Capital Assets -During our audit, there were adjustments to capital asset amounts. The City
has a centralized custodian in the Finance Department who maintains a record of the City's
capital assets, including additions and deletions made during the year. During the 2003 fiscal
year, the City adopted Governmental Accounting Standards Board Statement No. 34. This
statement increased the complexity of the capital assets by requiring governmental
infrastructure and depreciation on governmental capital assets be reported. Adding to the
complexity, the City has many large projects that are funded from more than one source,
including transfers from multiple funds, bond proceeds, and grant revenue. In addition, the
capital asset records are accumulated using many individual worksheets by fund and by
department, leaving many opportunities for error.
Recommendation -Due to this increased complexity, the City's capital asset records should
be closely reviewed for errors by management with knowledge of capital asset policies.
Response -The Director and/or the Assistant Finance Director will continue to monitor the
preparation of capital asset records. The adjustments made during the audit were not
significant as a percent of total capital assets, current year capital additions, or current and
future depreciation expense.
Conclusion -Response accepted.
Part III: Other Findings Related to Reauired Statutory Renortin~:
III-A-08 Certified Budget -Function disbursements during the year ended June 30, 2008, did not
exceed the amount budgeted.
III-B-08 Questionable Expenditures - No expenditures that may not meet the requirements of public
purpose as defined in an Attorney General's opinion dated Apri125, 1979, were noted.
III-C-08 Travel Expense - No expenditures of City money for travel expenses of spouses of City
officials or employees were noted.
III-D-08 Business Transactions -Business transactions between the City and City officials or
employees are detailed as follows:
Name, Title, and
Business Connection
Stacie Scott, employee, spouse is owner
of Scott Elite Concrete
Melissa McGinnis, employee, spouse is
owner of Quality Brick
Transaction
Description Amount
Construction $ 7,120
Construction 6,238
107
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2008
Part III: Other Findings Related to Reauired Statutory Renortin~: (continued)
Name, Title, and
Business Connection
Dick Voetberg, council member,
part-owner of Shepherd, Inc.
Kevin Lynch, council member, owner of
Net Smart
Jim Welty, employee, spouse is owner of
Circle DD Trucking, Inc.
Transaction
Description
Airport Services
Services
Services
Cheryl Pregler, employee, spouse is owner Services
of Pregler Photography
John Hefel, employee, spouse is owner of Services
A Frame of Mind Framing & Gallery
Ric Jones, council member, owner of RJ Services
Productions
Amount
3,014
670
523
415
395
300
In accordance with Chapter 362.5(10) of the Code of Iowa, the transactions with Net Smart,
Circle DD Trucking, Inc., Pregler Photography, A Frame of Mind Framing & Gallery, or RJ
Productions do not appear to represent conflicts of interest since total transactions with each
individual were less than $1,500 during the fiscal year. In accordance with Chapter 362.5(4)
of the Code of Iowa, the transactions with Scott Elite Concrete, Quality Brick, and Shepard,
Inc., do not appear to represent conflicts of interest since the transactions were entered into
through competitive bidding.
III-E-08 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 insure the
coverage is adequate for current operations.
III-F-08 Council Minutes - No transactions were found that we believe should have been approved in
the Council minutes but were not.
III-G-08 Deposits and Investments - No instances of non-compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy
were noted.
III-H-08 Revenue Bonds - No instances of non-compliance with the provisions of the City's revenue
bond resolutions were noted.
III-I-08 Solid Waste Fees Retaina~e -The Dubuque Metropolitan Area Solid Waste Agency, a
component unit of the City, used or retained the solid waste fees in accordance with Chapter
455B.310(2) of the Code of Iowa.
108
FINANCIAL STATEMENTS
JUNE 30, 2008
CITY OF DUBUQUE, IOWA
PARKING FACILITIES
-,
I~~~~~>1~~~~ ,lam ~~lr I~Il~lll r;,~~F>.~_~l~~l~illilf~'~`~, --- ---.
CITY OF DUBUQUE, IOWA
PARING FACILITIES
Table of Contents
_ _ __.
Page
OFFICIALS 1
INDEPENDENT AUDITOR'S REPORT 2-3
MANAGEMENT'S DISCUSSION AND ANALYSIS 4-7
FINANCIAL STATEMENTS
Statement of Net Assets 8-9
Statement of Revenues, Expenses, and Changes in Net Assets 10
Statement of Cash Flows 11-12
Notes to Financial Statements 13-20
SLrrl,EMENTARY INFORMATION
Combining Statement of Net Assets 21-22
Combining Statement of Revenues, Expenses, and Changes in Net Assets 23
Bond Ordinance Requirements 24
Schedule of Insurance Coverage 25-26
Schedule of Statistical Data 27
REPORT ON BOND ORDINANCE COMPLIANCE 28
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING AND
ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE Wt'1'tl
GOVERNMENT AUDITING STANDARDS 29-30
SCHEDULE OF FINDINGS AND RESPONSES 31
Name
Roy D. Buol Mayor
Richard W. Jones
David T. Resnick
Kevin J. Lynch
Karla A. Braig
Joyce E. Connors
Dirk N. Voetberg
Michael C. Van Milligen
Barry A. Lindahl
Jeanne F. Schneider
Kenneth J. TeKippe
Timothy M. Horsfield
Title
Council Member - At Large
Council Member - At Large
Council Member - l sc Ward
Council Member - 2114 Ward
Council Member - 3ra Ward
Council Member - 4~' Ward
City Manager
City Attorney
City Clerk
Finance Director/Treasurer
Parking Division Manager
1
i` i
i e ai y~,
a
CPAs Si BUSINESS ADVISORS
INDEPENDENT AUDITOR'S REPORT
__ _ _ _
To the Honorable Mayor and
Members of the City Council:
We have audited the accompanying financial statements of the Parking Facilities of the City of Dubuque,
Iowa, as of and for the year ended June 30, 2008 as listed in the table of contents. These financial
statements are the responsibility of the City's management. Our responsibility is to express an opinion on
these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the financial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
As discussed in Note 1, the financial statements referred to above present only the Parking Facilities of
the City of Dubuque, Iowa, and are not intended to present fairly the financial position of the City of
Dubuque and the changes in financial position and cash flows of its proprietary fund types in conformity
with accounting principles generally accepted in the United States of America.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
financial position of the Parking Facilities of the City of Dubuque, Iowa, as of June 30, 2008 and the
changes in financial position and cash flows for the year then ended in conformity with accounting
principles generally accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated December 16,
2008, on our consideration of the Parking Facilities' internal control over financial reporting and our tests
of its compliance with certain provisions of laws, regulations, contracts, and 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 and should be considered in assessing the results of our
audit.
PEOPLE. PRINCIPLES. POSSIBILITIES. 2
wvvw.eidob~silly.<:c~m
3999 Pennsylvania Ave., Ste. 100 A Dubuque, Iowa 52002-2273 1 Phone 563.556.1790 /Fax 563.557.7842 1 EOE
The management's discussion and analysis listed in the table of contents is not a required part of the
financial statements but is supplementary information required by accounting principles generally
accepted in the United States of America. We have applied certain limited procedures, which consisted
principally of inquiries of management regarding the methods of measurement and presentation of the
required supplementary information. However, we did not audit the information and express no opinion
on it.
Our audit was conducted for the purpose of forming an opinion on the financial statements of the Parking
Facilities of the City of Dubuque. The accompanying supplementary information is presented for
purposes of additional analysis and is not a required part of the financial statements. The combining
financial statements have been subjected to the auditing procedures applied in the audit of the fmancial
statements and, in our opinion, are fairly stated in all material respects in relation to the fmancial
statements taken as a whole. The bond ordinance requirements, schedule of insurance coverage, and
schedule of statistical data have not been subjected to the auditing procedures applied in the audit of the
financial statements, and accordingly, we express no opinion on them.
~~~~
Dubuque, Iowa
December 16, 2008
CITY OF DUBUQUE PARING FACILITIES
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2008
This section of the financial report of the City of Dubuque Parking Facilities presents our
discussion and analysis of the financial performance during the fiscal year that ended on
June 30, 2008. Please read it in conjunction with the financial statements of the City of
Dubuque Parking Facilities found in this report.
FINANCIAL HIGHLIGHTS
• The assets of the Parking Facilities exceeded its liabilities at the close of the fiscal
year by $15,163,116 (net assets). This was an increase of $1,033,643 over net
assets at June 30, 2007. Unrestricted net assets at June 30, 2008 in the amount of
$624,775 may be used to meet the ongoing obligations of the Parking Facilities.
• Total operating and construction fund operating revenues exceeded expenses by
$133,209.
• Within the Parking Facilities' operating fund, revenues and transfers exceeded
expenses by $1,691,427.
• Within the Parking Facilities' construction fund, expenses exceeded revenues and
transfers by $657,784.
OVERVIEW OF THE FINANCIAL STATEMENTS
The Parking Facilities' financial statements consist of a statement of net assets, a
statement of revenues, expenses, and changes in net assets, and a statement of cash flows.
This discussion and analysis is intended to serve as an introduction to the financial
statements. This report also contains other supplementary information in addition to the
financial statements themselves.
The statement of net assets presents information on all of the Parking Facilities' assets
and liabilities, with the difference between the two reported as net assets. Over time,
increases or decreases in net assets may serve as a useful indicator of whether the
financial position is improving or deteriorating.
The statement of revenues, expenses, and changes in net assets presents information
showing how the Parking Facilities' net assets changed during the most recent fiscal year.
All changes in net assets are reported as soon as the underlying event giving rise to the
change occurs, regardless of the timing of related cash flows.
The statement of cash flows reports cash receipts, cash payments, and net changes in cash
and cash equivalents resulting from four defined types of activities. It provides answers to
such questions as where did cash come from, what cash was used for, and what was the
change in cash and cash equivalents during the reporting year.
4
FINANCIAL ANALYSIS
Net assets As noted earlier, net assets may serve as a useful indicator of a facility's
financial position when observed over time. In the case of the Parking Facilities, assets
exceeded liabilities by $15,163,116 at the close of the most recent fiscal year.
The largest part of the Parking Facilities' assets (93.2%) reflects its investment in capital
assets such as land, buildings, 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 customers and are not available for future spending.
PARKING FACILITIES NET ASSETS
2008 2007
Total Total
Current and Other Assets $ 1,257,624 $ 2,152,925
Capital Assets 17,335,963 15,967,539
Total Assets 18,593,587 18,120,464
Long-term Liabilities 2,937,127 3,342,755
Other Liabilities 493,344 648,236
Total Liabilities 3,430,471 3,990,991
Net Assets
Invested in Capital Assets,
Net of Related Debt 13,983,836 12,562,187
Restricted 554,505 554,318
Unrestricted 624,775 1,012,968
Total Net Assets $ 15,163,116 $ 14,129,473
The decrease in long-term liabilities reflects principal paid during the past year.
Certain proceeds of revenue bonds, as well as certain resources set aside for their
repayment, are classified as restricted assets on the statement of net assets because their
use is limited by applicable bond covenants.
At the close of fiscal year 2008, the Parking Facilities reported total operating income of
$133,209 and an increase in net assets of $1,033,643.
5
PARKING FACILITIES
CONDENSED STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET ASSETS
2008 2007
Total Total
Operating Revenues $ 2,141,607 $ 1,977,757
Operating Expenses 2,008,398 1,410,309
Operating Income 133,209 567,448
Non-operating Expenses (82,280) (66,001)
Income Before Transfers 50,929 501,447
Capital Contributions 1,038,559 -0-
Transfers to City of Dubuque (55,845) (68,243)
Change in Net Assets 1,033,643 433,204
Net Assets, Beginning 14,129,473 13,696,269
Net Assets, Ending $ 15,163,116 $ 14,129,473
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets The Parking Facilities' investment in capital assets for its operating and
construction funds as of June 30, 2008, amounts to $17,335,963 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, machinery and
equipment. Additional information on the Parking Facilities' assets can be found in Note
4 to the financial statements in this report.
CAPITAL ASSETS (net of accumulated depreciation)
2008 2007
Total Total
Land $ 1,296,209 $ 1,296,209
Buildings 20,13 5,184 20,13 5,184
Improvements other than buildings 1,933,939 237,121
Machinery and equipment 1,184,471 587,628
Construction in progress 14,910 453,604
Accumulated depreciation (7,228,750) (6,742,207)
$ 17,335,963 $ 15,967,539
6
During fiscal year 2003 the financial statements reflected a transfer in for the completion of the
Fourth Street parking ramp. Funding for the ramp was provided by a general obligation bond
issue with repayment through tax increment financing. The general obligation bond debt for the
ramp is not reflected in these financial statements.
During fiscal year 2009, the financial statements will reflect a transfer in for the completion of
the Port of Dubuque Parking Ramp. Funding for the ramp is being provided by Urban Renewal
Tax Increment Revenue Bonds. The debt for the ramp will not be reflected in the financial
statements.
Long-term debt At year end the Parking Facilities had $3,352,127 of debt outstanding. This is a
decrease of $385,628 from June 30, 2007. Additional information on the Parking Facilities' long-
term debt can be found in Note 5 to the financial statements in this report.
ECONOMIC FACTORS
Revenue and expenses from parking enforcement activities were reflected with parking facilities
beginning in fiscal year ended June 30, 2004. Previously this activity was part of the general
fund of the City.
Requests for information. This financial report is designed to provide a general overview of the
Parking Facilities' 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 City of Dubuque, Finance Director, 50 West 13~ Street,
Dubuque, Iowa 52001-4864.
7
CITY ®F DUBUQUE, I®A
A NG FACILITIES
STATEMENT OF NET ASSETS
JUNE 30, 2008
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Total Current Assets
NON-CURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Non-current Assets
Total Assets
$ 626,425
67,922
8,772
703,119
554,505
1,296,209
20,135,184
1,933,939
1,184,471
14,910
(7,228,750)
17,335,963
17,890,468
18,593,587
(continued)
8
CITY ®F tTUE, I®~VA
PA NG FACIL,I~'IES
~; STATEMENT OF NET ASSETS
JUNE 30, 2008
LIABILITIES
CURRENT LIABII,11~1r;S
Accounts payable
Accrued payroll
General obligation bonds payable
Revenue bonds payable
Accrued compensated absences
Accrued interest payable
Unearned revenue
Total Current Liabilities
NON-CURRENT LIABILITIES
General obligation bonds payable
(net of discount of $5,837 and deferred amount
on refunding of $107,036)
Revenue bonds payable
Total Non-current Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted by bond ordinance
Unrestricted
Total Net Assets
20,335
18,978
175,000
240,000
21,624
10,990
6,417
493,344
2,687,127
250,000
2,937,127
3,430,471
13,983,836
554,505
624,775
$ 15,163,116
See notes to financial statements. 9
CITY OF DiTtTITE, IOWA
PA I~TG FACILITIES
STATEMENT OF REVENUES, EXPENSES, AND CFIANGES IN NET ASSETS
FOR ~1 ttr; FISCAL YEAR ENDED JUNE 30, 2008
OPERATING REVENUES
Charges for sales and services $ 2,137,826
Other 3,781
Total Operating Revenues 2,141,607
OPERATING EXPENSES
Employee expense 685,305
Utilities 106,753
Repairs and maintenance 108,085
Supplies and services 558,970
Insurance 35,710
Depreciation 513,575
Total Operating Expenses 2,008,398
OPERATING INCOME 133,209
NON-OPERATING REVENUES (EXPENSES)
Investment earnings 82,432
Interest expense (164,712)
Total Non-operating Expenses (82,280)
INCOME BEFORE TRANSFERS 50,929
CAPITAL CONTRIBUTIONS 1,038,559
TRANSFERS TO THE CITY OF DUBUQUE (55,845)
CHANGE IN NET ASSETS 1,033,643
NET ASSETS, BEGINNING 14,129,473
NET ASSETS, ENDING $ 15,163,116
See notes to financial statements. 10
CITY OFD UQUE, IWA
P NG FACILITIES
STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,127,773
Cash payments to suppliers for goods and services (980,112)
Cash payments to employees for services (690,810)
Other operating receipts 3,781
NET CASH PROVIDED BY OPERATING ACTIVr1~S 460,632
CASH FLOWS FROM NON-CAPTI'AL FINANCING
ACTIV ri i~S
Transfers to the City of Dubuque (55,845)
CASH FLOWS FROM CAPITAL AND RELA1~1~
FINANCING ACTIVITIES
Acquisition and construction of capital assets (843,440)
Payment of debt (395,000)
Interest paid (160,550)
NET CASH USED FOR CAPITAL AND RELATED FINANCING
ACTIV 1115 (1,398,990)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 95,836
NET DECREASE IN CASH AND CASH EQUIVALENTS (898,367)
CASH AND CASH EQUIVALENTS, BEGINNING 2,079,297
CASH AND CASH EQUIVALENTS, ENDING $ 1,180,930
(continued)
11
CITY ®F DUDUQUE, I®A
P l~TG FACILITIES
~ STATEMENT OF CASH FLOWS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
RECONCILIATION OF OPERATING INCOME TO NET
CASH PROVIDED BY OPERATING ACTIV111~S
Operating income $ 133,209
Adjustments to reconcile operating income to net cash
provided by operating activities
Depreciation 513,575
Change in assets and liabilities
Increase in receivables (16,470)
Decrease in accounts payable (170,594)
Decrease in accrued liabilities (5,505)
Increase in unearned revenue 6,417
Total Adjustments 327,423
NET CASH PROVIDED BY OPERATING ACTIVtl ~S $ 460,632
NON-CASH CAPITAL AND RELA1~1~ FINANCING
ACTIV 1115
Contributions of capital assets from other funds
and outside sources $ 1,038,559
See notes to financial statements. 12
CITY ®F ITZTE, IVVA
P NG FACILITIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
NOTE 1-SUMMARY OF SIGNtH'iCANT ACCOiTNTING POLICIES
Reporting Entity
The financial statements include only those funds of the Parking Facilities and are not intended to present
all funds of the City of Dubuque, Iowa.
Basis of Accounting
The Parking Facilities' accounting records are maintained on the cash basis. However, for financial
reporting purposes, the accounting records have been adjusted to the accrual method, recognizing revenue
when earned and expenses when liabilities are incurred.
Budgets and Budgetary Accounting
In accordance with the Code of Iowa, the City Council annually adopts a budget on the cash basis of
accounting with an adjustment for accrued payroll following required public notice and hearing for all
funds. The annual budget may be amended during the year utilizing similar statutorily prescribed
procedures.
Formal and legal budgetary control is based upon nine major classes of expenditures known as functions,
not by fund. These nine functions are public safety, public works, health and social services, culture and
recreation, community and economic development, general government, debt service, capital projects,
and business-type activities.
Deposits and Investments
The Parking Facilities' cash 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.
Restricted Assets
Certain proceeds of revenue bonds, as well as certain resources set aside for their repayment, are
classified as restricted assets on the statement of net assets because their use is limited by applicable bond
covenants.
Capital Assets
Capital assets include property, plant, and equipment. Capital assets are defined by the government as
assets with an initial, individual cost of more than $20,000 for building assets and $10,000 for the
remaining assets, and an estimated useful life of more than a 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 repairs that do
not add to the value of the asset or materially extend asset lives are not capitalized.
(continued on next page) 13
CITY ®F D ITZTE, IWA
P 1~1G FACII..ITIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets is not included as part of the capitalized value of
the assets constructed.
Capital assets 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
Compensated Absences
The Parking Facilities allow employees to accumulate earned, but unused, vacation and sick pay benefits.
Such benefits are accrued when earned and are reported as liabilities.
Equity
Restrictions of net assets represent amounts restricted by applicable bond covenants.
NOTE 2 -DEPOSITS AND INVESTMENTS
The Parking Facilities are authorized by state 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; 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.
Investments are stated at fair value.
The Parking Facilities' investments are pooled with other investments of the City. It is, therefore, not
possible to list the types of investments held by the Parking Facilities at June 30, 2008.
Interest Rate Risk. The City's investment policy limits the investments of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Rislz The City's investment policy
debt to the top two highest classifications.
corporate debt during the year.
limits investments in commercial paper and other corporate
The City did not invest in any commercial paper or other
(continued on next page) 14
CITY ®F UUE, IVVA
P I~ FACII.,I'I'IES
NOTES TO FINANCIAL STATEMENTS
JITNE 30, 2008
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 Rislz -Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the government'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 Risli -Investments. For an investment, this is the risk that, in the event of the failure the
counterparty, the government 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 the agent in the City's name.
NOTE 3 -TRANSFERS
Transfers for the year ended June 30, 2008, consisted of the following:
Transfers from Parking Facilities to:
General
General construction
$ 9,900
45.945
$ 55.845
NOTE 4 -CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2008, was as follows:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Total capital assets, being depreciated
Beginning
Balance
$ 1,296,209 $
453.604
1.749.813
20,135,184
237,121
587.628
20.959.933
Increases
1.055.723
1.055.723
1,696,818
623.875
2.320.693
Ending
Decreases Balance
$ - $ 1,296,209
(1.494.4171 14.910
(1.494.4171 1.311.119
- 20,135,184
- 1,933,939
(27.0321 1184.471.
(27.0321 23.253.594
(continued on next page) 15
CITY ®F DUBUQUE, I®A
I~1G FACILITIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total accumulated depreciation
Beginning Ending
Balance Increases Decreases Balance
$ (6,273,141) $ (433,685) $ - $ (6,706,826)
(116,109) (35,862) - (151,971)
(352.9571 (44,0281 27.032 (369.953
(6.742.2071 (513.5751 27.032 (7.228.750)
Total capital assets, being depreciated, net 14.217.726 1.807.118 - 16.024.844
Capital assets, net $ 15.967.539 2 862.841 $ (1.494.41 $ 17.335.963
NOTE 5 -LONGTERM DEBT
General Obligation Bonds. The City issued general obligation bonds to provide financing for the
acquisition and construction of parking facilities.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. These
bonds were issued as serial bonds with varying amounts of principal maturing annually and with interest
payable semi-annually. General obligation bonds outstanding at June 30, 2008, are as follows:
Amount Amount
Date of Maturity Interest Originally Outstanding
Purnose Issue Dates Rates Issued End of Year
Corporate purpose 06/01/00 06/01/02-06/01/09 5.80% $ 2,750,000 $ 125,000
Corporate purpose 04/03/06 06/01/07-06/01/21 3.60-4.20% 910,000 825,000
Corporate purpose -
refunding 04/03/06 06/01/10-06/01/20 3.65-4.10% 2.025.000_ 2.025.000
~ 5.685.000_ $ 2.975.000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Endine June 30 Principal Interest
2009
2010
2011
2012
2013
2014-2018
2019-2021
Total
$ 175,000 $ 119,725
144,787 110,675
152,660 105,390
155,532 99,741
161,277 93,909
1,152,234 372,119
1.033.510 69.298
$ 2.975.000 ~ 970 857
(continued on next page) 16
CITY ®F LTLTE, I®~'A
PA loTG FACII.,ITIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
Revenue Bonds. The City issued parking revenue bonds to provide financing for the acquisition and
construction of parking facilities. These bonds were issued as serial bonds with varying amounts of
principal maturing annually and with interest payable semi-annually. Parking revenue bonds outstanding
~ at June 30, 2008, are as follows:
Amount Amount
Date of Maturity Interest Originally Outstanding
Purnose Issue Dates Rates Issued End of Year
Parking facilities 03/01/98 OS/Ol/OS-OS/O1/10 4.70-4.75% $ 2.515.000 ~ 490.000
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending June 30 Principal Interest
2009 $ 240,000 $ 23,155
ZO10 250.000 11.875
Total ~ 490.000 ~ 35,030
The resolution providing for the issuance of the revenue bonds includes the following provisions:
~ a. A sum equal to one-tenth (1/10) of the principal of all bonds maturing on May 1 next succeeding, plus
j a sum equal to one-fifth (1/5) of the interest coming due on the next succeeding interest payment date
on all of the then outstanding bonds, shall be set aside into a restricted sinking account from the net
~ revenue of the Operating Fund until the full amount of such installments is on hand.
b. A restricted reserve account shall maintain the lesser of 1) the maximum amount of principal and
interest coming due in any fiscal year; or 2) ten percent of the proceeds of the sale of the bonds.
c. $5,000 shall be set apart and paid into a restricted depreciation account from the balance of the net
off-street parking revenues and net on-street parking revenues remaining after first making the
~ required payments into the sinking account and the reserve account on the first day of each month of
~ each year up to a maximum of $250,000.
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2008, was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
General obligation bonds $ 3,140,000 $ - $ (165,000) $ 2,975,000 $ 175,000
Less:
Unamortized discounts (6,290) - 453 (5,837) -
Deferred amount on
refunding (115.9551 - 8.919 (_107.0361 -
[ Total general
obligation bonds 3.017.755 - (155.6281 2.862.127 175.000
Revenue bonds 720.000 - (230.0001 490.000 240.000
Compensated absences 29.393 21.624 (29.3931 21.624 21.624
$ 3,767.148 ~ 21.624 $ (415.0211 $ 3,373.751 ~ 436.
(continued on next page) 17
CITY ®F D VIJEy I® VY'A
PA NG FACILITIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, .2008
In a prior year, the Parking Facilities defeased general obligation bonds by placing the proceeds of new
bonds in an irrevocable trust to provide for all future debt service payments on the old bonds.
Accordingly, the trust account assets and liabilities for the defeased bonds are not included in the Parking
Facilities' fmancial statements. On June 30, 2008, $2,025,000 of bonds outstanding are considered
defeased. These bonds will remain outstanding until they are called on June 1, 2009.
NOTE 6 -PENSION AND RETIREMENT BENEFITS
The Parking Facilities of the City of Dubuque, Iowa, contribute to the Iowa Public Employees Retirement
System (Il'ERS), which is acost-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.
Plan members are required to contribute 3.90% of their annual covered salary, and the Parking Facilities
are required to contribute 6.05% of annual covered payroll. Contribution requirements are established by
state statute. The Parking Facilities' contributions to II'ERS for the years ended June 30, 2008, 2007, and
2006, were $26,571, $23,221, and $23,798, respectively, equal to the required contributions for each year.
NOTE 7 -LEGAL COMPLIANCE WITH BUDGET
The City of Dubuque, Iowa, adopts a budget annually as required by Iowa law. The budget, which is
prepared on the cash basis of accounting with an adjustment for accrued payroll, includes those funds of
the Parking Facilities.
As required by Iowa law, the City prepares its budget based upon nine major classes of expenditures
known as functions, not by individual fund. Therefore, the City must amend the budget only if the entire
City's function amounts will be exceeded. For the year ended June 30, 2008, the City's actual
disbursements were less than budgeted amounts for the business-type activities function.
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 and
participates in a local government risk pool.
(continued on next page) 18
CITY OF DUBUQUE, IOWA
PA l~G FACILITIES
NOTES TO FINANCTAT, STATEMENTS
JUNE 30, 2008
The City of Dubuque 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 $85,000 and an aggregate stop loss of
$6,075,095 for 2008. 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 of Dubuque 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 $450,000, and an aggregate stop loss
consistent with statutory limits for 2008. 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 last
three fiscal years. The estimated liability does not include any allocated or unallocated claims adjustment
expense.
All funds of the City participate in both programs and make payments to the Health Insurance Reserve
Fund and the Workers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior- and current-year claims.
The City is a member in the Iowa Communities Assurance Pool, as allowed by Chapter 670.7 of the Code
of Iowa. The Iowa Communities Assurance Pool (Pool) is a local government risk-sharing pool whose
570 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 to equa1200 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
f - 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 in addition to the Pool.
(continued on next page) 19
CITY OFD ITQIJE, IOWA
P NG FACILITIES
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2008
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. The next $2,650,000 in claims are covered with another pool (APEEP). Claims exceeding
$3,000,000 are reinsured. Property and automobile physical damage risks are retained by the Pool up to
$100,000 each occurrence, each location, with excess coverage reinsured on an individual-member basis.
The Pool's intergovernmental contract 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, 2008, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool's inception.
Members agree to continue membership in the Pool 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.
20
CITY OFD UQUE, IOWA
PA l~TG FACILITIES
COMBINING STATEMENT OF NET ASSETS
JI7NE 30, 2008
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Total Current Assets
NON-CURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
- Land
Buildings
Improvements other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Non-current Assets
Total Assets
Operating Construction
Fund Fund Total
$ 202,696 $ 423,729 $ 626,425
67,922 - 67,922
8,772 - 8,772
279,390 423,729 703,119
554,505 - 554,505
1,296,209 - 1,296,209
20,135,184 - 20,135,184
1,933,939 - 1,933,939
1,184,471 - 1,184,471
- 14,910 14,910
(7,228,750) - (7,228,750)
17,321,053 14,910 17,335,963
17, 875, 55 8 14,910 17, 890,468
18,154,948 438,639 18,593,587
(continued)
21
CITY ®F D U~UE, I®WA
PA NG FACILITIES
COMBINING STATEMENT OF NET ASSETS
JUNE 30, 2008
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
General obligation bonds payable
Revenue bonds payable
Accrued compensated absences
Accrued interest payable
Unearned revenue
Total Current Liabilities
NON-CURRENT LIABILITIES
General obligation bonds payable
(net of discount of $5,837 and deferred amount
on refunding $107,036)
Revenue bonds payable
Total Non-current Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted by bond ordinance
Unrestricted
Total Net Assets
Operating Construction
Fund Fund Total
$ 9,945 $ 10,390 $ 20,335
18,978 - 18,978
175,000 - 175,000
240,000 - 240,000
21,624 - 21,624
10,990 - 10,990
6,417 - 6,417
482,954 10,390 493,344
2,687,127 - 2,687,127
250,000 - 250,000
2,937,127 - 2,937,127
3,420,081 10,390 3,430,471
13,983,836 - 13,983,836
554,505 - 554,505
196,526 428,249 624,775
$ 14,734,867 $ 428,249 $ 15,163,116
22
CITY i' D V II V~ V Ey I®l~
P NG FACILITIES
COMBINING STATEMENT OF REVENUES, EXPENSES,
AND CHANGES IN NET ASSETS
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NON-OPERATING REVENUES (EXPENSES)
Investment earnings
Interest expense
Total Non-operating Revenues (Expenses)
INCOME (LOSS) BEFORE TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS FROM (TO) OTHER FUNDS
TRANSFERS TO THE CITY OF DUBUQUE
CHANGE IN NET ASSETS
NET ASSETS, BEGINN7~1G
NET ASSETS, ENDING
Operating Construction
Fund Fund
Total
$ 2,137,826 $ - $ 2,137,826
3,781 - 3,781
2,141,607 - 2,141,607
685,305 - 685,305
106,753 - 106,753
108,085 - 108,085
276,067 282,903 558,970
35,710 - 35,710
513,575 - 513,575
1,725,495 282,903 2,008,398
416,112 (282,903) 133,209
72,953 9,479 82,432
(164,712) - (164,712)
(91,759) 9,479 (82,280)
324,353 (273,424) 50,929
1,038,559 - 1,038,559
328,515 (328,515) -
- (55,845) (55,845)
1,691,427 (657,784) 1,033,643
13,043,440 1,086,033 14,129,473
$ 14,734,867 $ 428,249 $ 15,163,116
23
CI 1 ~ ®i' L~BU~ V Ey I®A
NG FACII.,I'I'IES
BOND ORDINANCE REQUIREMENTS
JUNE 30, 2008
Following is a summary of the bond ordinance requirements of the parking revenue refunding bond issue
dated March 1, 1998.
1. A sum equal to one-tenth (1/10) of the principal of all bonds maturing on May 1 next succeeding, plus
a sum equal to one-fifth (1/5) of the interest coming due on the next succeeding interest payment date
on all of the then outstanding bonds, shall be set aside into a restricted sinking account from the net
revenue of the Operating Fund until the full amount of such installments is on hand.
2. A restricted reserve account shall maintain the lesser of 1) the maximum amount of principal and
interest coming due in any fiscal year; or 2) ten percent of the proceeds of the sale of the bonds.
3. $5,000 shall be set apart and paid into a restricted depreciation account from the balance of the net
off-street parking revenues and net on-street parking revenues remaining after first making the
required payments into the sinking account and the reserve account on the first day of each month of
each year up to a maximum of $250,000.
4. The City will cause an audit of such books and accounts of the Parking Facilities to be made by a
certified public accountant not in the regular employ of the City showing the receipts and
disbursements for each account of the Parking Facilities. The audit report required shall include, but
not be limited to, the following:
a. An evaluation of the manner in which the City has complied with the covenants of this resolution,
including particularly the rate covenants included herein;
b. A statement of net revenues and current expenses;
c. Analyses of each fund and account created, including deposits, withdrawals, and beginning and
ending balances;
d. A statement of net assets;
e. The rates in effect at the end of the fiscal year, and the number of customers of the Parking
Facilities;
f. A schedule of insurance policies and fidelity bonds in force at the end of the fiscal year, showing
with respect to each policy and bond the nature of the risks covered, the limits of liability, the
name of the insurer, and the expiration date;
g. An evaluation of the issuer's system of internal financial controls and the sufficiency of fidelity
bond and insurance coverage in force;
h. The names and titles of the principal officers of the City; and
i. A general statement covering any events or circumstances which might affect the financial status
of the Parking Facilities.
24
CITY ®F I)LTBLTUE, I®A
PA leT FACILITIES
SCHEDULE OF INSURANCE COVERAGE
FOR THE FISCAL YEAR ENDED JUNE 30, 2008
At June 30, 2008, the property of the Parking Facilities was insured through a blanket fire and extended
coverage policy with the Cincinnati Insurance Company in the amount of $28,893,547. This policy
expired July 1, 2008. The Parking Facilities were also insured against general, vehicle, and personal
liability through the Iowa Communities Assurance Pool. These policies expired July 1, 2008. Also in
force at June 30, 2008, was aself-funded workers' compensation plan and an employers' liability policy
which expired July 1, 2008.
Listed below is a detailed schedule of the policies in effect at June 30, 2008:
FIRE AND EXTENDED COVERAGE
VALUES
Building and
Descrintion Structure Contents Total
Concrete Parking Ramp
601-795 Iowa Street $ 8,540,093 $ 12,102 $ 8,552,195
Concrete Parking Ramp
801-899 Locust Street 6,012,225 49,886 6,062,111
Concrete Parking Ramp
501-599 Iowa Street 8,540,093 - 8,540,093
Concrete Parking Ramp
100 West Fourth Street 5.739.148 - 5.739.148
$ 28.831.559 X61.988_ 28 8 3.547
BUSINESS INCOME
on earnings - $297,900*
at 601-795 Iowa Street - 80% co-insurance.
on earnings - $221,500*
at 801-899 Locust Street - 80% co-insurance.
on earnings - $297,270*
at 501-599 Iowa Street- 80% co-insurance.
on earnings - $180,000*
at 100 West Fourth Street - 80% co-insurance.
* No change per Friedman Insurance.
(continued on next page) 25
CITY F DLT~LTLTE, IWA
1~1G FACILITIES
SCHEDULE OF INSURANCE COVERAGE (continued)
FOR THE FISCAL YEAR ENDED JUNE 30, 2005
SYSTEMS BREAKDOWN COVERAGE -EQUIPMENT
Each Occurrence
$ 2,500,000
GENERAL LIABILITY INSURANCE
BODILY INJURY -PROPERTY DAMAGE -PRODUCTS
ICAP
Each Occurrence $ 12,000,000
VEHICLES
ICAP
Each Occurrence
$ 12,000,000
EXCESS WORKERS' COMPENSATION & EMPLOYERS' LIABILITY
Each Accident $ 450,000 Retention
Each Disease $ 450,000 Retention
Limit Workers' Compensation -Statutory
Employers' Liability $ 1,000,000
FIDELITY BOND COVERAGE
Each employee $ 100,000
City Manager, Budget Director, Finance Director, and Assistant Finance Director - $900,000 additional.
The above insurance policies have been renewed through July 1, 2009.
26
CITY ®F I) UQUE, I®WA
PA NG FACILITIES
SCHEDULE OF STATISTICAL DATA
FOR TAE FISCAL YEAR ENDED JUNE 30, 2008
Number of Customers: (Estimated)
Locust Ramp:
Cash customers
Monthly customers, rental spaces
Iowa Ramp:
Cash customers
Monthly customers, rental spaces
Fourth Street Ramp:
Cash customers
Monthly customers, rental spaces
Fifth Street Ramp:
Cash customers
Monthly customers, rental spaces
Rates in Effect per Month:
Locust Ramp:
Reserved stalls (Bay)
Reserved stalls (Undercover)
Roof stalls
Iowa Ramp:
Reserved stalls
Top of ramp stalls
Fourth Street Ramp:
Non-assigned stalls
Fifth Street Ramp:
Non-assigned stalls
Other:
Residential Street Meters
Lot #1
Lot #2
Lot #3
Lot #4
Lot #10
Lot #12
Federal Building Lot
N/A =Not Applicable
28,432
385
45,364
447
8,466
180
N/A
674
$ 60
55
43
55
43
40
47
50.00/qtr
32
32
37
32
42
30
37
27
/`
~.i
CPAs Si BUSINESS ADVISORS
REPORT ON BOND ORDINANCE COMPLIANCE
To the Honorable Mayor and
Members of the City Council:
We have audited the fmancial statements of the Parking Facilities of the City of Dubuque, Iowa, as of
June 30, 2008, and for the year then ended, and have issued our report thereon dated December 16, 2008.
These financial statements are the responsibility of the City's management. Our responsibility is to
express an opinion on these financial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and
disclosures in the fmancial statements. An audit also includes assessing the accounting principles used
and significant estimates made by management, as well as evaluating the overall financial statement
presentation. We believe our audit provides a reasonable basis for our opinion.
In the course of our audit, nothing came to our attention that caused us to believe there had been a lack of
compliance with the accounting or reporting requirements of the bond ordinance governing the parking
revenue refunding bond issue dated March 1, 1998.
~~~~
Dubuque, Iowa
December 16, 2008
PEOPLE. PRINCIPLES. POSSIBILITIES. 28
www.c~id~b~ illy.~~111
3999 Pennsylvania Ave., Ste. 1001 Dubuque, Iowa 52002-2273 1 Phone 563.556.17901 Fax 563.557.7842 1 EOE
/ i
e ". o
ice a~ y„
I
-~-
CPAs & BUSINESS ADVISORS
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 A UDITING STANDARDS
To the Honorable Mayor and
Members of the City Council:
We have audited the accompanying fmancial statements of the Parking Facilities of the City of Dubuque,
Iowa, as of and for the year ended June 30, 2008, which collectively comprise the Parking Facilities'
basic financial statements listed in the table of contents, and have issued our report thereon dated
December 16, 2008. We conducted our audit in accordance with auditing standards generally accepted in
the United States of America and the standards applicable to financial audits contained in Government
Auditing Standards, issued by the Comptroller General of the United States.
Internal Control Over Financial Re>7ortin>?
In planning and performing our audit, we considered the Parking Facilities' internal control over financial
reporting as a basis for designing our auditing procedures for the purpose of expressing our opinions on
the financial statements, but not for the purpose of expressing our opinion on the effectiveness of the
Parking Facilities' internal control over fmancial reporting. Accordingly, we do not express an opinion on
the effectiveness of the Parking Facilities' internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and would not necessarily identify all deficiencies in the internal control over
fmancial reporting that might be significant deficiencies or material weaknesses. However, as discussed
below, we identified a certain deficiency in internal control over fmancial reporting that we consider to be
a significant deficiency, including a deficiency we consider to be a material weakness.
A control deficiency exists when the design or operation of the control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent or detect
misstatements on a timely basis. A significant deficiency is a control deficiency, or combination of
control deficiencies, that adversely affects the Parking Facilities' ability to initiate, authorize, record,
process, or report financial data reliably in accordance with U.S. generally accepted accounting principles
such that there is more than a remote likelihood a misstatement of the Parking Facilities' fmancial
statements that is more than inconsequential will not be prevented or detected by the Parking Facilities'
internal control. We consider the deficiency in internal control described in Part I of the accompanying
Schedule of Findings and Responses to be a significant deficiency in internal control over financial
reporting.
A material weakness is a significant deficiency, or combination of significant deficiencies, that results in
more than a remote likelihood a material misstatement of the financial statements will not be prevented or
i
detected by the Parking Facilities' internal control.
PEOPLE. PRINCIPLES. POSSIBILITIES. 29
www.~ic~ebclilly.cc~m
3999 Pennsylvania Ave., Ste. 1001 Dubuque, Iowa 52002-2273 A Phone 563.556.1790 1 Fax 563.557.7842 1 EOE
Our consideration of the internal control over financial reporting was for the limited purpose described in
the first paragraph of this section and would not necessarily identify all deficiencies in the internal control
that might be significant deficiencies and, accordingly, would not necessarily disclose all significant
deficiencies that are also considered to be material weaknesses. However, we believe the significant
deficiency described is a material weakness.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the Parking Facilities' fmancial statements are
free of material misstatement, we performed tests of its compliance with certain provisions of laws,
regulations, contracts and grant agreements, non-compliance 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 non-compliance or other matters that are
required to be reported under Government Auditing Standards.
Comments involving statutory and other legal matters about the Parking Facilities' operations for the year
ended June 30, 2008, are based exclusively on knowledge obtained from procedures performed during our
audit of the fmancial statements of the Parking Facilities and are reported in Part II of the accompanying
Schedule of Findings and Responses. 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.
The Parking Facilities' responses to findings identified in our audit are described in the accompanying
Schedule of Findings and Responses. While we have expressed our conclusions on the Parking Facilities'
responses, we did not audit the Parking Facilities' responses, and accordingly, we express no opinion on
them.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque and other parties to whom the City of Dubuque may
report. This report is not intended to be and should not be used by anyone other than these specified
parties.
We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City
of Dubuque during the course of our audit. Should you have any questions concerning any of the above
matters, we shall be pleased to discuss them with you at your convenience.
~~~~
Dubuque, Iowa
December 16, 2008
30
CITY OF I)U~U~UE, IOWA
PA NG FACILITIES
SCHEDULE OF FINDINGS AND RESPONSES
FOR '1'ti1: FISCAL YEAR ENDED JUNE 30, 2008
Part I: Findings Related to the Financial Statements:
SIGNIFICANT DEFICIENCY/MATERIAI. WEAKNESS
I-A-08 Preparation of Financial Statements - As auditors, we were requested to draft the financial
statements and accompanying notes to the financial statements. It is the responsibility of
management and those charged with governance to make the decision whether to accept the
degree of risk associated with this condition because of cost or other considerations.
Recgmmendation - We recognize that with a limited number of office employees, preparation
of the financial statements is difficult. However, we recommend that Parking Facilities officials
continue reviewing operating procedures in order to obtain the maximum internal control
possible under the circumstances.
Response -The American Institute of Certified Public Accountants implemented a new
auditing standard in 2007. There have been no changes in city procedures. The cost benefit
analysis reflects that the City continue with the current contractual agreement that the CPA firm
prepare our financial statements.
Conclusion -Response accepted.
Part H: Other Findings Related to Statutory Reporting:
H-A-08 Certified Budget -For the City of Dubuque as a whole, disbursements of the business-type
activities during the year ended June 30, 2008, did not exceed the amounts budgeted.
H-B-08 Questionable Expenditures - No expenditures that fail to meet the requirements of public
purpose as defined in an Attorney General's opinion dated Apri125, 1979, were noted.
II-C-08 Travel Expense - No expenditures of Parking Facilities money for travel expenses of spouses of
Parking Facilities officials or employees were noted.
lI-D-08 Business Transactions - No business transactions between the Parking Facilities and its officials
or employees were noted.
II-E-08 Bond Coverage -Surety bond coverage of Parking Facilities officials and employees is in
accordance with statutory provisions. The amount of coverage should be reviewed annually to
insure that the coverage is adequate for current operations.
II-F-08 Council Minutes - No transactions were found that we believe should have been approved in the
Council minutes but were not.
H-G-08 Revenue Bonds -The provisions of the Parking Facilities' Revenue Refunding Bond resolution
have been met for the year ended June 30, 2008.
II-H-08 Deposits and Investments - No instances of non-compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy were
noted.
31