Comprehensive Annual Financial Report (CAFR) 2009THE CITY OF Dubuque
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Masterpiece on the Mississippi
2007
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
SUBJECT: Submission of Fiscal Year Ended June 30, 2009 Comprehensive Annual
Financial Report (CAFR), Parking Facilities Financial Statements,
Management Letter and Responses to Management Letter
DATE: December 28, 2009
Finance Director Ken TeKippe is transmitting the Fiscal Year 2009 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.
_.
Mio~iael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
THE CITY OF
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1Vlc~sterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
f~tbuque
AA-AmericaC~y
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2007
SUBJECT: Submission of Fiscal Year Ended June 30, 2009 Comprehensive Annual
Financial Report (CAFR), Parking Facilities Financial Statements,
Management Letter and Responses to Management Letter
DATE: December 28, 2009
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2009 CAFR and Parking
Facilities Financial Statements audited by Eide Bailly, LLP, and 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
State code requires an annual audit by independent certified public accountants or the
State Auditor. In addition to meeting the requirements set forth in state statues, the
audit also was designed to meet the requirements of an annual single audit in
conformity with the U.S. Office of Management and Budget Circular A-133, Audits of
States, Local Governments and Non-Profit Organizations.
This Comprehensive Annual Financial Report is in conformance with the standards set
by OMB Circular A-133. This federal regulation mandates audit standards for federal
programs.
The government-wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
and fiduciary fund financial statements. Gouer+~mental fund-financial statements are
reported using the current financial resources measurement focus and the modifjed
accrual basis of acco~nting~.
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 2009 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.
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Enclosures: Fiscal Year 2009 CAFR
Parking Facilities Financial Statements
Auditor Management Letter
Responses to Comments in Auditor Management Letter
THE CITY OF .
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Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
Dubuque
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2U07
SUBJECT: Responses to Audit Management Letter-Fiscal Year Ended June 30, 2009
DATE: December 28, 2009
INTRODUCTION
Responses to the "other comments" section of the December 21, 2009 management
letter issued by Eide Bailly LLP subsequent to completion of the Fiscal Year 2009 audit
of the City are hereby submitted.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2009 details specific findings. Pages 113-116 of the report provide this
information. In addition to the comments in the report, a management letter dated
December 21, 2009 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 Accountina 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 usin. g the modified
accrual/accrual basis of accounting. Eide Bailly LLP currently posts all`adjustrtie~s at
year-end which are necessary to convert the City's cash-basis amounts to the amounts
used in the CAFR.
At this fime, the City is preparing the workpapers needed to convert the accounting
records to the modified accrual/accrual basis at year-end. In 2009, the City has also
started to prepare the journal entries to adjust the cash-bas"is amounts to the mod~ed
accrual/accrual basis of accounting. 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 and prepared most journal entries to
adjust the cash-basis amounts to the modified accrual/accrual basis of accounting. 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 may 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.
Governmental Accounting Standards Board (GASBI Statements
Auditor comment
The Governmental Accounting Standards Board (GASB) has issued three statements
not yet implemented by the City of Dubuque. The statements, which might impact the
City, are as .follows:
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
The City Finance Department will coordinate with the CPA audit firm to provide any
information required by GASB ~1. Since tha implementation is for the fiscal year
ending June 30, 2010, time is available to research any requirements applicable to the
City of Dubuque. GASB 51 should not affect the City audit since the City does not have
intangible assets.
GASB Statement No. 53
Auditor comment
Accounting and Financial ReQOrtincr 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 53. Since the implementation is for the fiscal year
ending June 30, 2010, time is available to research any requirements applicable to the
City of Dubuque. GASB 53 should not affect the City audit since no derivative
instruments are utilized.
GASB Statement No. 54
Auditor comment
Fund Balance Reporting and Governments/Fund Tvpe Definitions, issued February
2009, will be effective for the fiscal year ending June 30, 2011. This statement
establishes new standards for fund balance classifications based primarily on the extent
to which a government is bound to observe constraints imposed upon the use ofthe
resources reported in governmental funds.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm and Budget
Department to provide information required by GASB 54. Since the implementation. is~
for the fiscal year ending June 30, 2011, time is available to research any req:uirements
applicable to the City of Dubuque. GASB 54 will affect the City audit.
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Enclosure
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EideBailly
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 aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the City
of Dubuque, Iowa, for the year ended June 30, 2009. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, Government Auditing
Standards, and OMB Circular A-133, as well as certain information related to the planned scope and timing of
our audit. We have communicated such information in our letter to you dated May 20, 2009. Professional
standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Dubuque 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 2009. We noted
no transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the City's financial statements were:
Management's estimate of 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 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 incurred but not reported liabilities in determining that they are reasonable in
relation to the financial statements taken as a whole.
Management's estimate of other postemployment benefits is based on a calculation of actuarially
determined contributions for health insurance benefits. We evaluated the key factors and assumptions
used to develop other postemployment benefits liability in determining that it is reasonable in relation to
the financial statements taken as a whole.
PEOPLE. PRINCIPLES. POSSIBILITIES.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 /Dubuque, IA 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
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. Material misstatements detected as a result of audit procedures were in the areas
of capital assets and the Schedule of Expenditures of Federal Awards.
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.
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated December 21, 2009.
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.
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 3
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.
Sincerely,
EIDE BAILEY C,LP
CPAs & Business Advisors
SGT
Dubuque, Iowa
December 21, 2009
CITY OF DUBUQUE
YEAR ENDED JUNE 30, 2009
O i tir;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 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
accruaUaccrual basis at year-end. In 2009, the City has also started to prepare the journal entries to adjust the
cash-basis amounts to the modified accrual/accrual basis of accounting. 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.
Governmental Accounting Standards Board (GASB)
The Governmental Accounting Standards Board (GASB) has issued three statements not yet implemented by the
City of Dubuque. The statements, which might impact the City of Dubuque, are as follows:
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. 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.
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February 2009, will
be effective for the fiscal year ending June 30, 2011. This statement establishes new standards for fund balance
classifications based primarily on the extent to which a government is bound to observe constraints imposed upon
the use of the resources reported in governmental funds.
COMPREHENSIVE ANNIIAL FINANCIAL REPORT
FOR THE FISCAL YEAR ENDED JIINE 30, 2009
CITY OF DUBUQUE, IOWA
Prepared by:
Department of Finance
CITY OF DIIBIIQIIE, IOWA
Table of Contents
Exhibit Pase
INTRODIICTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-10
City Organizational Chart 11
Officials 12
Certificate of Achievement for Excellence in Financial Reporting 13
FINANCIAL SECTION
Independent Auditor's Report 14-15
Management's Discussion and Analysis 16-23
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets 1 24-25
Statement of Activities 2 26
Fund Financial Statements
Balance Sheet Governrnental Funds 3 27
Reconciliation of the Governrnental Funds Balance Sheet to the
Statement of Net Assets 3-1 28
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governrnental Funds 4 29
Reconciliation of the Governrnental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4-1 30
Statement of Net Assets-Proprietary Funds 5 31-32
Statement of Revenues, Expenses, and Changes in Fund Net Assets
(Deficit) -Proprietary Funds 6 33
Statement of Cash Flows -Proprietary Funds 7 34-35
Statement of Fiduciary Assets and Liabilities Agency Funds 8 36
Notes to Financial Statements 37-66
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances -Budget
and Actual (Budgetary Basis) Governrnental Funds and Enterprise Funds 67
Notes to Required Supplementary Information -Budgetary Reporting 68
Schedule of Funding Progress for the Retiree Benefit Plan 69
Combining Fund Statements
Combining Balance Sheet - Nonrajor Governrnental Funds A-1 70-71
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances - Nonrajor Governrnental Funds A-2 72-73
Combining Statement of Net Assets Nonmajor Enterprise Funds B-1 74
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets Nonrajor Enterprise Funds B-2 75
Combining Statement of Cash Flows Nonmajor Enterprise Funds B-3 76-77
Combining Statement of Net Assets -Internal Service Funds C-1 78
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets (Deficit) -Internal Service Funds C-2 79
Combining Statement of Cash Flows Internal Service Funds C-3 80
Combining Statement of Changes in Assets and Liabilities -Agency Funds D-1 81
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CITY OF DIIBIIQIIE, IOWA
Table of Contents
Table Pase
STATISTICAL SECTION (CTnaudited)
Statistical Section 82
Financial Trends
Net Assets by Component 1 83
Changes in Net Assets 2 84-85
Fund Balances of Governrnental Funds 3 86
Changes in Fund Balances of Governrnental Funds 4 87
Revenue Capacity
Taxable and Assessed Value of Property 5 88
Property Tax Rates -Direct and Overlapping Governments 6 89
Principal Property Taxpayers 7 90
Property Tax Levies and Collections 8 91
Debt Capacity
Ratios of Outstanding Debt by Type 9 92
Ratios of General Bonded Debt Outstanding 10 93
Direct and Overlapping Governrnental Activities Debt 11 94
Legal Debt Margin Information 12 95
Revenue Bond Coverage Parking Bonds 13 96
Water and Sewer Receipt History 14 97
Water Meters by Rate Class 15 98
Largest Water and Sewer Customers 16 99
Demographic and Economic Information
Demographic and Economic Statistics 17 100
Principal Employers 18 101
Full-Time Equivalent City Government Employees by
Function/Department 19 102
Operating Information
Operating Indicators by Function/Program 20 103
Capital Asset Statistics by Function/Program 21 104
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 Governrnent.4uditing Standards 105-106
Report on Compliance with Requirements Applicable to Each Major
Program and on Internal Control Over Compliance in Accordance with
OMB Circular A-133 107-108
Schedule of Expenditures of Federal Awards 109-111
Notes to the Schedule of Expenditures of Federal Awards 112
Schedule of Findings and (2uestioned Costs 113-116
Dubuque Finance Department
THE CITY OF
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' 50 West 13th Street
Dubuque, Iowa 52001-4805
Office (563) 589-4133
Fax (563) 690-6689
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I I 771 (563) 690-6678
. finance~cityofdub uque. org
Masterpiece on the Mississippi 2007 www.cityofdubuqueorg
December 21, 2009
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, 2009, is hereby submitted as required by vaiious 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. "fo 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 yeaz 2009. In
addition to meeting the requirements set forth in state statutes, the audit also was designed to
meet the requirements of an annual single audit in conformity with the U.S. Office of
Management and Budget Circular A-133, Audits of States, Local Governments and Non-Profit
Organizations. Information related to this single audit, including the Schedule of Expenditures 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 units. Component
units are legally separate entities for which the City of Dubuque is financially accountable. The
City provides a full range of services including police and fire protection, sanitation services, the
construction and maintenance 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,
Service People Integrity Responsibility Innm~afinn 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) and
Dubuque Initiatives and Subsidiaries as a discretely presented component units. A discretely
presented component unit is reported in a separate column in the government-wide financial
statements to emphasize that it is legally separate from the City of Dubuque and to differentiate
its financial position and results of operations from those of the City. The City of Dubuque
appoints a voting majority to the DMASWA governing board and operates the landfill: Dubuque
Initiatives is organized to render service to service to the City Council of the City of Dubuque,
Iowa on matters of community interest, and in the event of dissolution, any assets or property of
the organization are transferred to the City. In 2009, the City of Dubuque guaranteed debt issued
by Dubuque Initiatives and Subsidiaries.
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 CITY
The City of Dubuque is located on the Mississippi River in northeast Iowa, adjacent to the states
of Illinois and Wisconsin. Julien Dubuque began mining lead in the area now known as Dubuque
in 1788. Dubuque is the oldest city in Iowa and has a unique combination of the old and new,
ranging from cable cars, Victorian architecture, and a Civil War era shot tower, to an enclosed
shopping mall, two casinos, one with a parrmutuel dog and the Smithsonian affiliated National
Mississippi River Museum and Aquarium. 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.
Dubuque has a stable and diversified economic base and is the major tri-state retail center.
Dubuque ended the fiscal year with an unemployment rate of approximately 6.2 percent, equal to
the state unemployment rate, but lower than the national average of 9.5%. The new IBM Service
Center plans to add 1300 IT jobs by December 2010.
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 mayor is elected to a four-year term. 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. Four of the council members are elected within
their respective wards; the mayor and the two remaining council members are elected at large.
The governing council is responsible for, among other things, setting policy, passing ordinances,
4
adopting the budget, appointing committees, and hiring the City Manager, City Attorney, and
City Clerk. The City Manager is responsible for overseeing the day-to-day operations of the
government, making recommendations to the City Council on the budget and other matters,
appointing the heads of the government's departments, and hiring employees.
ECONOMIC CONDITION
Development at the Port of Dubuque continues with an $80 million Diamond Jo Casino
entertainment expansion completed December 2008 and a $32 million expansion underway by
the National Mississippi River Museum and Aquarium. These projects join the already
completed developments in the Port of Dubuque including the McGraw-Hill Higher Education
office building, the LEED-certified remodeling of the former Adams facility by Durrant;
renovation of City-owned Dubuque Star Brewery by a private developer for office, restaurant,
and retail use and a new City parking ramp. A $60 million mixed use development is still
planned for the port.
Development of the Dubuque Industrial Center West continues with several business expansions,
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 in 2008 or 2009.
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. These facilities house
Kunkel Bounds and Associates, Sedgwick CMS, Straka Johnson Architects, and Entegee
Engineering.
Downtown development continues at a brisk pace with the following projects: $11 million
expansion by Cottingham and Butler, which adds 90 new jobs; the renovation of the former
Interstate Power Company headquarters, now the home of W.S. Live with over 100 new jobs for
the downtown; and a $1.5 million restoration of the historic German Bank building were
completed during 2008. A $6.2 million renovation project at the Carnegie Stout Public Library
is scheduled to be completed in Apri12010.
The most recent major development in the Downtown was the January 2009 announcement that
IBM will be utilizing the former Roshek Building as the office for 1,300 new service center jobs.
The building was purchased by Dubuque Initiatives and is currently undergoing a $38 million
renovation. IBM has already taken possession of the top four floors (6-9) and plans to reach their
employment goal by the end of 2010. The City is also planning the construction of another
downtown parking ramp to accommodate the influx of new downtown employees.
The IBM project has created a high demand for rental housing, as many of these new employees
will be recent college graduates. 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
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the district was approved by the Council in February 2009. Planning has begun for the
infrastructure and parking needs anticipated by the redevelopment of these large brick structures
for mixed use purposes. The City is actively working with developers to expedite the
rehabilitation process in order to fill the critical housing need created by IBM. A 24-unit
condominium project has begun at 40-42 Main Street.
West end construction includes Horizon Development beginning construction in the fall of 2009
of a 43-unit Senior Assisted Living Residence; Kluck Construction broke ground on two 24-unit
market rate apartment buildings; and GTW Pennsylvania, Inc. received approval to build 216
two-bedroom market rate apartments near the Dubuque Industrial Center West. Eagle Rock
Construction has also begun construction of a 15-unit townhouse development.
Construction has, also begun on three new residential subdivisions. Pebble Cove #1 and #2,
located near the southwest corner of the Northwest Arterial, will provide 46 new building lots for
single and two-family homes. Three homes are currently underway there. English Ridge
subdivision, located east of the intersection of U.S. 20, will create 45 single-family lots. Ten
homes are completed or underway in that subdivision. Anew subdivision named North Fork
Trails is under construction. One two-unit townhouse is currently under way. 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.
Retail construction includes Walgreens opening a new north end store in August 2009 serving as
their third location in Dubuque and Holiday Inn Express opened their facility on the west side of
town. Demolition was 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.
Other major construction projects include 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.
The operation of an expanded land-base Diamond Jo Casino in December, 2008 had a negative
impact on City revenue from the Mystique. However, a plan to address this impact was approved
by the City Council as part of the FY 2010 budget process.
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 2009, 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;
6
• Ranked 18th in nation in 2008's "Best Small Places for Business and Careers", by
Forbes magazine.
• 2009 Economic Development Administration's "Excellence in Economic Development
Award for Excellence in Historic Preservation-led Strategies" for the IBM/Roshek
Building Project
• 2009 Best Business Retention & Expansion Program Award
• 2009 RelocateAmerica.com Top 100 Places to Live
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the Mayor and City
Council, has been involved in a variety of projects throughout the year. These.projects reflect the
City's commitment to continue to provide high quality services to the citizens of Dubuque.within
the budget guidelines set by the Mayor and City Council.
The Dubuque Regional Airport acquired 103 acres of land located between the two airport
runways as the first step in implementing the airport master plan. The land is required to support
the new airline terminal as depicted in the FAA approved Airport Layout Plan. This action has
lead to funding the preliminary design and site plan.
The City continues to implement components of the $38 million Drainage Basin Master Plan.
The $4 million West 32nd 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 resource and
energy use profile, and a variety of neighborhood-based green initiatives.
IBM and the City of Dubuque announced in September 2009 a new collaboration aimed at
making this community one of the first "smarter" sustainable cities in the U.S. The goal of this
collaboration is to develop and pilot a systematic mechanism to give consumers and businesses
the information they need to make informed decisions about how they consume resources like
electricity, water, natural gas, and oil
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
7
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:
• Diverse, Strong Dubuque Economy
• Sustainable City
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity: Transportation and Telecommunications
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
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 a part of the City's single audit described earlier, tests are made to determine the adequacy of
internal controls, including that portion related to federal programs, as well as to determine that
the government has complied with applicable laws, regulations, contracts, and grants. The results
of the government's single audit for the fiscal year ended June 30, 2009, 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 arm
re-appropriated as part of the following year's budget.
8
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 $3,122,467 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 were 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 $419,230 deficit as of
June 30, 2009. 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 $2,910,972 as of June 30, 2009. 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, 2008. This was the 21th 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.
9
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, 2009. In addition, we received the award for the fiscal
year ending June 30, 2010. In order to receive this award, a governmental unit must publish a
budget document that meets program criteria as a policy document, as an operations guide, as a
financial plan and as a communications .device. This was the 4th consecutive year that the City
has achieved this prestigious award. This award is valid for a period of one year.
The City of Dubuque submitted its investment policy to the Association of Public Treasurers of
the United States and Canada for review and recertification during fiscal year ended June 30,
2009. The City was awarded the Certification of Excellence in July 2009.
Acknowledgments. The preparation of this report could not be accomplished without the
efficient and dedicated services of the entire Finance Department staff. We also thank the Mayor
and City Council for their interest and support in planning and conducting the financial,
operations of the City of Dubuque in a responsible and progressive manner. We also thank the
independent certified public accountants, Eide Bailly LLP, whose competent assistance and
technical expertise have enabled the production of this report.
Sincerely,
Michael C. Van Milligen Kenneth J. TeKippe, CPA
City Manager Finance Director
10
CITY OF DUBUQUE ORGANIZATIONAL CHART
City Attorney CITY COUNCIL City Clerk
Library ' 'Airport
^ublic Information Officer
Assistant City Manager (2}
CITY MANAGER Cable N Geographic Communications
Personnel Manager information Assistant
Systems
Training and Workforce Development Coordinator -
Neighborhood Development
Budget Director ~ - Sustainable Community Coordinator
Assistant Budget Director
{
Building I I
Economic Emergency Finance Fire
Health I
Housing ~ i l
Human Information
Services Development Communications Department Department Services Community Rights Services
Department Department Department Development Department Department
Emergency Department
Parking System Management
i Transit Division
I
Leisure Services Public Works Planning Police
~
Engineering
Water
Water Pollution
Department Department Services Department Department Department Control
Department Department
Civic Center
Park
Recreation
4!22/09
CITY OF DUBUQUE, IOWA
OFFICIALS
JCtNE 30, 2009
CITF COIINCIL
Roy D. Buol
Richard W. Jones
David T. Resnick
Kevin J. Lynch
Karla A. Braig
Joyce E. Connors
Dirk N. Voetberg
COIINCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M. Bramwell-Sahm
James A. O'Brien
Jeanne F. Schneider
DEPARTMENT MANAGERS
Robert A. Crnerson
Therese H. Goodmann
Cynthia M. Steinhauser
Jenny M. Larson
Richard R. Russell
David J. Heiar
Kenneth J. TeIuppe
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
Terrence N. Tobin
Gus N. Psihoyos
Robert M. Green
Jonathan R. Brown
Mayor
Council Member - At Large
Council Member At Large
Council Member - 1'R Ward
Council Member 2nd Ward
Council Member 3`d Ward
Council Member - 4`" 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
Acting Police Chief
Public Works Director
Water Department Manager
Water Pollution Control Plant Manager
12
Certificate of
Achievement
for excellence
in r'inancial
reporting
Presented to
City of llubuque
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2008
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 comprehensive annual financial
reports (CAr~Ks) achieve the highest
standards in government accounting
and financial reporting.
~ ~~ ~,
u~~~A~s ~
" o~~ ,~ President
X40 ~~ a~~
~r~~~~m ~
Executive Director
13
~~1
EideBailly,..
~~
cr.~~. a 1~1: a~1:; :~rn~1sr~1:
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 aggregate discretely presented component units, each major fund, and the aggregate
remaining fi~.nd information of the City of Dubuque, Iowa {City), as of and for the year ended June 30,
2009, which collectively comprise the City's basic financial statements 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 did not audit the
financial statements of Dubuque Initiatives and Subsidiaries {a discretely presented component unit).
Those financial statements were audited by other auditors whose reports thereon have been furnished to
us, and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives and Subsidiaries,
is based on the reports of the other auditors.
We conducted our audit in accordance with auditing standards gene>ally accepted in the United States of
America and the standards applicable to financial audits contained in Govern;°reent 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. The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented
component unit, were not audited in accordance Gavernrraent Auditing Standards. 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 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 aggregate
discretely presented component units, each major fund, and the aggregate remaining fi~.nd information of
the City of Dubuque, Iowa, as of June 30, 2009, and the respective changes in financial position and cash
flows, where applicable, for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Gavern~reent Auditing Standards, we have also issued our report dated December 21,
2009, 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 Govern;°raentAuditing Standards and should be considered in assessing the results of our
audit.
PEOPLE. PRINCIPLES. POSSIBILITIES. 14
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 1001 Dubuque, Iowa 52002-2273 1 Phone 563.556.17901 Fax 563.557.7842 1 EOE
Management's discussion and analysis and other required supplementary information, listed in the table
of contents, are not required parts 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 (OMB) 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 21, 2009
15
CITY OF DIIBIIQIIE
MANAGEMENT'S DISCIISSION AND ANALYSIS
FOR THE YEAR ENDED JIINE 30, 2009
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,
2009. 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 aY the close of the fiscal
year by $454,310,322 (net assets). This was an increase of $236,420 over net
assets at June 30, 2008. Unrestricted net assets at Jnne 30, 2009 in the amount of
$7,040,410 may be used to meet the City's ongoing obligations to citizens and
creditors.
• The expenditures of the general fund exceeded revenues by $3,209,947.
• The ending general fluid balance was $19,070,882.
• Within the City's business-type activities, revenues exceeded expenses and
transfers by $26,592,682.
• For the year, the expenses and transfers of the City's govermnental activities
exceeded revenues by $26,356,252.
• The City's debt increased by $11,415,061 due to issuance of new debt exceeding
principal payments.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements consist of goverunent-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 goverunent-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
16
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 daring 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 governnent-wide financial statements include not only the City itself (known as the
primary governnent), but also two other legally separate entities, the Dubuyue
Metropolitan Area Solid Waste Agency (DMASWA) and Dubuque Initiatives (DI) and
Subsidiaries, for which the City of Dubuque is considered financially accountable.
Financial information for DMAS WA and DI are reported separately from the financial
information presented for the primary government The Dubuyue Metropolitan Area
Solid Waste Agency and Dubuyue Initiatives and Subsidiaries issue 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 intergoverunental revenues. Basic City services such
as police, fire, public works, plamiing, 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, refiise,
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 fluid 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 tlu-ee categories:
governmental funds, proprietary funds, and fiduciary funds.
Goverrzmerztal finzds. Governmental funds are used to account for essentially the same
fiuictions reported as goverunental activities in the governnent-wide financial
statements. However, unlike the government-wide financial statements, governmental
fluid financial statements focus on near-tern 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.
17
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-
wide financial statements. By doing so, readers may better understand the long-teen
impact of the City's near teen financial decisions. Both the goverunental fluid balance
sheet and goverunental fluid statement of revenues, expenditures, and changes in fimd
balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains five individual major goverzunental funds. Information is presented
separately in the goverunental fluid balance sheet and in the goverunental fluid
statement of revenues, expendihires, and changes in fimd balances for the general fimd,
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 goverunental fluids is provided in the fora of combining statements
elsewhere in this report.
The City legally adopts an annual budget by function. A budgetary comparison schedule
has been provided.
Proprietazy funds. The City maintains two different types of proprietary fiords.
Enterprise fluids are used to report the same fiuictions 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 interial service fiords to account for its general/engineering service, garage service,
stores/printing, health insurance, and workers' compensation. The City's interial service
fiords predominately benefit the governmental activities and have been included in the
governmental activities in the government-wide financial statements.
Fiduciary fizzzds. Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary fiords are not reflected in the government-wide
financial statements because the resources of those fluids are not available to support the
City's own programs. The accounting used for fiduciary fiords is nmch 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 infornation that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Required supplementary izzformatiozz. In addition to the basic financial statements and
accompanying notes, this report also presents certain required supplementary information
concerting the budget and actual results of the City and the fiuiding progress for the
retiree benefit plan.
18
OtHer irzformatiorz. 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 $454,310,322 at the close of the most recent fiscal year.
The largest part of the City's net assets (92.3° o) 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. Increase in capital assets is due
primarily to the capitalization of the Port of Dubuque Parking Ramp in 2009. These
capital assets are used to provide services to the citizens and are not available for filhlre
spending.
CITY OF DIIBIIQIIE'S NET ASSETS
wvernmental Activitie, Bu,ine„-1We Activitie,
2009 2008 2009 2008
Current end other nssets
Capital nssets
Total nssets
Long-term liabilitie,
Uther liabilitie,
Total linbiliries
Net a++et+:
Inve,ted in capital a„eta,
net of related debt
Restricted
Unrestricted
Total net nssets
$ 82,013,145 $ 97,492,8ti2 $ 1ti,750, 708 $ 13,705,545
320,588,titi4 325,ti11,587 139,030,039 107,18ti,474
aoz,oo1,809 az3,loa,aa9 155,781,3x7 12o,89z,o19
54,942,7-08 sQ,451,804 2Q,751,447 12,817,868
26,913,307 25,550,629 1,465,332 1,102,265
81,85ti,055 7ti,002,433 22,21 ti,779 13,920,133
298,855,346 296,143,451 12Q,473,286 95,104,575
27,171,123 31970,724 770,157 554,505
15,280,7151 18,987,841 12,321,125 11,312,800
$ 320,745,754 $ 347,102,016 $ 133,564,568 $ 106,971,886
Total
2009 2008
$ 98,7ti3,853 $ 111,198,407
a59,o19,303 a3z,798,001
558 383,1sti 543 99ti,4ti8
75,694,195 63,269,672
28,378,639 26,652,894
1oa,o7z,83a 8992z,5oo
419,328,632 391,248,026
27941 ~80 32,525,229
7,oao,alo 30,3oo,oa7
$ 454,310,322 $ 454,073,902
A portion of the City's net assets (6.2°~0) represents resources that are subject to external
restrictions on bow they maybe used. The remaining balance of net assets (1.5° o) maybe
used to meet the City's ongoing obligations to citizens and creditors.
At the close of fiscal years 2009 and 2008, the City is able to report positive balances in
all three categories of net assets, both for the govennnent as a whole and business-type
activities. The only deficit balance reported is in the governnental activities unrestricted
category.
19
Goverrzmerztal activities. The Governmental activities decreased in the net assets by_
$26,356,262 in 2009 due to the transfer of the Port of Dubuque Parking Ramp to
Business Type Activities while the related TIF debt remains in government activities.
Taxes are the largest source of govennnental revenues with property taxes of
$23,716,819 in 2009. Other govennnental revenues included gaming of $9,627,391, local
option sales taxes of $7,649,853, and $10,314,274 of charges for services. Govennental
expenses during 2009 totaled $76,889,080. The largest programs were public safety of
$22.038.265, public works of $19.079.688, community and economic development of
$12.693.140 and culture and recreation of $12.640J16.
CITV OF DIIBIIQIIE
CONDENSED STATEMENT OF REVENIIES,
EXPENSES, AND CHANGES IN NET ASSETS
Governmenta l Activitie, Bu,ine„-ty re Activitie, To tal
2009 2008 2009 2008 2009 2008
Revenue,:
Program revenues
Clwrges for services $ 10,314,274 $ 9,ti43,Otiti $ 18,809,520 $ 17,17ti,090 $ 29,123,794 $ 2ti,819,15ti
Operating grant, and contributio n, 12,599,967 11,709,123 1,095,9x6 1,209,636 13,695,913 12,918,759
Oapital grants and contribution, x,811,729 8,032,602 3,613,321 2,830,263 8,x25,050 10,862,865
General revenue,
Propzrty taszs ~3, 71 ti,819 ~~,7aa,5ti3 - - X3,71 ti,819 ~~,7aa,5ti3
Local option sales tax 7,ti49,853 8,020,889 - - 7,ti49,853 8,020,889
Hotel/motel tax 1,ti11954 1,ti22,455 - - 1,ti 11954 1,ti22,455
Utility francM,e fee, 1,x86,292 1,516,123 - - 1,x86,292 1,516,123
Deming 9,627,391 15,346,x68 - - 9,627,391 15,346,x68
Unre,tricted inve,tment earning, 2,215,x13 2,741,x99 x33,148 63Q,049 2,6x8,561 3,371,5x8
Geis on salt of capital asszts x07,503 92,525 2,30a 11,73ti x09,807 10a,2ti1
Othzr 918,ti05 898,2x1 - - 918,ti05 898,2x1
Total revenues 75,359,800 82,3ti7,554 23,954,239 21,857,774 99314,039 104,225,328
Expen,e,:
Public ,afety 22,038,265 16,966,210 - - 22,038,265 16,966,210
Public work, 19,079,688 18,8x7,068 - - 19,079,688 18,8x7,068
Hzalth and social szrvices 8a9?37 800,Stiti - - 8a~ 237 800 5titi
Culturz and recreation 12,tia0,71ti 10,857,x09 - - 12,tia0,71ti 10,857,x09
Community and zconomic
development 12,693,1x0 11,961,58x - - 12,693,1x0 11,961,58x
General government 6,x23,908 5,80x,003 - - 6,x23,908 5,80x,003
Intere,t on long-term debt 3,16x,126 2,577,x17 - - 3,16x,126 2,577,x17
Szwagz disposal works - - ti,32ti,708 ti,1a1,52a ti,32ti, 708 ti,1a1,52a
water utility - - ti,100,a91 x,81 a,ti92 ti,100,a91 a,81a,ti92
Stormwatzr utility - - 2,138,198 1,70ti, 735 2,138,198 1,70ti,735
Parking facilitie, - - 2,147,x05 2,173,110 2,1x7,405 2,173,110
America', River Project - - 61,927 126,699 61,927 126,699
Refue collection - - 2,788,665 2,72x,050 2,788,665 2,72x,050
Tran,it ,y,tem - - 2,625,1x5 2,703,983 2,625,1x5 2,703,983
Total expenses 7ti,889,080 ti7,814,257 22,188,539 20,390,793 99,077,ti19 88 05,050
Increase in net assets before
tran,fer, 11,529,280) 1x,553,297 1,765,700 1,x66,981 236,x20 16,020,278
Tran,fer, (2x,826,982) (2,252,155) 2x,826 982 2,252,155 - -
Increa,eldecrea,elinneta„eta (26,356,262) 12,301,1x2 26,592,682 3,719,136 236,x20 16,020,278
Neta„eta, beginning 3x7,102,016 33x,80Q,87x 106,971,886 103,252,750 x5x,073,902 x38,053,62x
Net assets, ending $ 320,745,754 $ 347,102,O1ti $ 133,Sti4,5ti8 $ lOti,971,88ti $ 454,310,322 $ 454,073,902
20
Business-type activities. Business type activities increased net assets by $26,592,682,
primarily due to the Port of Dubuque Parking Ramp transfer, while the City's net assets
increased by $236,420 at June 30, 2009.
FINANCIAL ANALVSIS OF THE GOVERNMENT'S FIINDS
Goverrzmerztal fisrzds. 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 fiord balance may serve as a usefiil measure of a govermnent's net resources
available for spending at the end of the fiscal year.
The City's governmental funds reported a combined fund balance of $50,381,341 at June
30, 2009. A portion of the fund balance is reserved and not available for new spending
because it has already been committed for encumbrances, endowments, and debt service
and state stahrte restricted purposes.
The general fluid's fiord balance reserve goal is 10°~0 of budgeted aimmal expenditures.
The balance at June 30, 2009 is higher than the goal.
The unreserved fund balance of special revenue employee benefits fund decreased by
$91,766 to $25,508. Prior years' cash balance was transferred to general fund in 2009.
The unreserved fluid balance of special revenue comm~unity development decreased by
$650,333 to $1,507,745, due to increase in a reserve for encumbrances for capital
projects.
Proprietary fisrzds. 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 fiords at June 30, 2009 totaled $133,564,568 of
which 9.2°'0 ($12,321,125) is unrestricted. The net assets of the internal service funds are
$2.810.457, a $607.770 decrease from the 2008 total net assets, due to reduction in the
funding level of the Employee Health Insurance Reserve, based on favorable results in
claims for past years. The unrestricted net assets of the interial service fluids are
$2,766,943 (98.4°~0).
The sewer disposal works had an increase in net assets of $1,780,928 for total net assets
of $41,226,185 at June 30, 2009 primarily due to capital contribution. The water utility
had a decrease in net assets of $276.595 for total net assets of $24.347.647. The storm
water utility bad an increase in net assets of $1,734,725 for total net assets of
$25,768,366 primarily due to capital contributions. The parking facilities had ati increase
in net assets of $23,236,226 for total net assets of $38,399,342 due to new Port of
Dubuque Parking Ramp. The America's River Project bad an increase in net assets of
$84,388 for total net assets of $53,441.
21
BIIDGETARY HIGHLIGHTS
There were two amendments to the City's 2008-2009 cash basis budget. The first
amendment was passed in October 2008 to reflect operating and capital budget
carryovers (continuing appropriation authority) from 2008 and amends the FY 2009
budget for operating acid capital City Council actions since the beginning of the fiscal
year. The second budget amendment was passed in May 2009 to reflect City Council
actions since the first budget amendment and amendments to add additional appropriation
authority due to increased revenues.
The final budget for total cash basis receipts increased by $26,364,456. The increase was
primarily attributable to revenue associated with capital projects acid operating carryovers
which mainly include grants to intergovernmental funds. The final budget for total
expenditures increased $59,159,789 from the original budget. The increase was primarily
attributable to purchase order encumbrances carryover, capital projects and operating
carryovers from the prior year and expendihlres associated with new grants received.
Achlal cash basis revenues were $28,189,068 less than the final amended budget, and
cash basis expenditures were $73,664,2071essthxn 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 goverunental and business-
type activities as of June 30, 2009, amounts to $459,619,303 (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 6 to the
financial statements in this report.
CAPITAL ASSETS (net of accumulated depreciation)
wvzrnmzntal Activitiz, Bu,inz„-tynz Activitiz, Total
2009 2008 2009 2008 2009 2008
Lend $ 58,39?908 $ 57,171,ti99 $ ti,2?7,014 $ 33ti4,857 $ ti4,ti19,922 $ ti0,53ti,55ti
Building, 109,118,439 106,145,708 85,114,689 61,828,335 194,233,128 167,974,043
Improvzmzntn othzr than building, 15,535,320 15,245,857 63,968,022 62,082,852 79,503,342 77,328,709
MacMnzry and zquipmznt 31,100,111 28,679,138 52,962,217 49,217,914 84,062,328 77,897,052
Infra,tructurz 188,493,620 187,542,063 - - 188,493,620 187,542,063
Construction in progrzss ti,138,ti 18 14,044,930 9558,839 ti,390,937 15,ti97,457 20,435,8ti7
Accumulated depreciation 88,19035?) B~?17,8081 (78,800,14?) (75,ti98,4211 (1titi 990,4941 (15891 ti,229)
$ 320,588,titi4 $ 325,011.587 $ 139,030.039 $ 107,18ti,474 $ 459,ti 19,303 $x32,798.001
Major expenditures during 2008-2009 were for completion of the Port of Dubuque
Parking Ramp, Bee Branch and W 32nd Street storm water projects, Library and Multi-
cultural Center renovations, land acquisition for new airport terminal, improvements at
the Dubuque Industrial Center West, Water Pollution Control Plant study and streets,
water and sewer projects.
22
Lorzg-term debt. At year end the City had $71,813,088 of debt outstanding. This is an
increase of $11,415,061 from June 30, 2008. New debt issued during the current year
included general obligation bonds for $5,755,000 for Library and Multi Cultural Center
renovation projects and improvements at the Dubuque Industrial Center West and,
$3,885,000 for stone water projects. $1,195,000 revenue bonds were issued for water
projects. The City's bond rating for these issues was Aa2. The City also received
disbursements from the State Revolving Fund construction loan program of $414,478 for
drinking water, $2,189,989 for stone water and $809,362 for sewer projects. The City
also received a $400,000 loan from the Dubuque Initiatives for purchase of a parking lot,
and $150,000 loan from the Iowa Housing Authority for Affordable Housing.
The City continues to operate well under the State debt capacity limitations. The State
limits the amount of general obligation debt outstanding to 5°'0 of the assessed value of
all taxable property in the community. Thus our debt capacity is $163,620,641. With
$76,181,766 of debt applicable against the capacity, we are utilizing 46.56°'0 of this limit.
Additional information on the City's long-teen debt can be found in note 7 of this report.
ECONOMIC FACTORS
The City's unemployment rate ended the fiscal year at 6.2°'0, a 2.4°'o increase from the
prior year, and equal to the State of Iowa rate, but lower than the 9.5° o national rate.
The City continues to enjoy growth in assessed valuation oftaYable property net of
exemptions (6.9°'o for total of $1,939,773,000). In fiscal year 2009, the minimum
monthly refuse rate increased $0.46 to $10.35, sewer rates increased 9°'0, water rates
increased 9°'o and the storm water monthly fee increased $0.75 to $4.00 per single family
unit (SFL~.
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
13a' Street, Dubuque, Iowa 52001-4864.
23
CITY OF DUBUQUE, IDWA EIHIBIT 1
STATEMENT OF NET ASSETS
JCrNE 30, 2009
Component Units
Dubuque Dubuque
P rimary Government Metropolitan Initiatives
Governmental Business-type Area Solid and
Activities Activities Total Waste Agency Subsidiaries
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 39,19R,106 $ 12,209,907 $ 51,4nR,n13 $ 7,079,423 $ 37,215,R06
Receivables
Property tax
Delinquent 270,044 - 270,044 - -
Succeedingyear 19,095,444 - 19,095,444 - -
AccounU and other 1,727,713 2,576,561 4,304,274 21R,02R 327,S1R
Special assessments 633,997 - 633,997 - -
Accruedinterest 242,126 55,339 297,465 37,240 32,R43
Notes 716,545 - 716,545 - 65,273
Intergovernmental 3,814,684 1,1131,444 4,846,128 - -
Internalbalances 381,257 (381,257) - - -
Inventories 210,133 4RR,557 69R,690 - 133,347
Prepaid items 27,764 - 27,764 2R,749 -
TotalCurrentAssets 66,317,R13 15,9R0,551 R2,29R,364 7,363,440 37,774,787
NONCURRENT ASSETS
Temporarily restricted cash and pooled
cashinvestmenU 5,740,252 770,157 6,510,409 3,675,75R -
Permanently restricted cash and pooled
cashinvestmenU 69,412 - 69,412 - -
Notes receivable 9,885,668 - 9,885,668 - 22,375,380
Capital assets
Land 58,392,908 6,227,014 64,619,922 1,586,092 131,983
Buildings 109,118,439 85,114,689 194,233,128 65,922 11,832,432
ImprovemenU other than buildings 15,535,320 63,968,022 79,503,342 7,468,652 32,816
Machinery and equipment 31,100,111 52,962,217 84,062,328 2,780,821 -
Infrastructure 188,493,620 - 188,493,620 - -
Constructioninprogress 6,138,618 9,558,839 15,697,457 - -
Accumulateddepreciation (88,190,350 (78,800,142) (166,990,494) (7,070,780) (313,016)
Total Noncurrent Assets 336,283,996 139,800,796 476,084,792 8,506,465 34,059,595
TotalAssets 402,601,809 155,781,347 558,383,156 15,869,905 71,834,382
(continued)
24
CITY OF DUBUQUE, IDWA EIHIBIT 1
STATEMENT OF NET ASSETS (continued)
JCrNE 30, 2009
Component Units
Dubuque Dubuque
P rimary Government Metropolitan Initiatives
Governmental Business-type Area Solid and
Activities Activities Total Waste Agency Subsidiaries
LIABILITIES
CURRENT LIABILITIES
AccounUpayable $ 5,735,973 $ 1,187,967 $ 6,923,940 $ 194,15R $ 5,21$662
Accrued payroll 1,119,046 239,253 1,358,299 28,996 -
Loans payable 16,667 18,911 35,578 - -
Notes payable 119,988 141,615 261,603 - 228,109
General obligation bonds payable 1,755,950 R24,U50 2,SR0,000 - -
Revenue bonds payable - 32U,000 32U,000 - -
Taxincrement financing bonds payable 531,61 i9 - 531,61 i9 - -
Accrued compensated absences 2,594,380 384,609 2,978,989 133,921 -
Accruedinterestpayable 280,681 38,112 318,793 - 47,752
Intergovemmentalpayable 18,800 - 18,800 53,198 -
Uneamedrevenue -
Succeeding year property taa 19,1195,444 - 19,1195,444 - -
Other 663,363 - 663,363 - -
TotalCurrentLiabilities 31,931,901 3,154,517 35,n86,41R 410,273 5,494,023
NONCURRENT LIABILITIES
Loans payable 133,333 371,979 505,312 - 450,000
Notes payable 1,049,696 3,772,461 4,R22,157 - 51,715,321
General obligation bonds payable 24,185,743 13,624,720 37,R10,463 - -
Revenue bonds payable - 1,114,713 1,114,713 - -
Landfill closure and postclosure care - - - 3,574,1182 -
Tax increment financing bonds payable 23,831,653 - 23,831,653 - -
NetOPEB liability 723,729 178,389 902,118 18,039 -
TotalNoncurrentLiabilities 49,924,154 19,062,262 68,986,416 3,592,121 52,165,321
Total Liabilities R1,R56,U55 22,216,779 104,072,834 4,002,394 57,659,344
NET ASSETS
Invested in capital assets, net of
related debt 298,855,346 120,473,286 419,328,632 4,830,707 -
Restricted for/by
Bond ordinance 3,602,755 770,157 4,372,912 - -
Debtservice 3,155 - 3,155 - -
Employee benefits 25,508 - 25,508 - -
Community development 12,769,234 - 12,769,234 - -
Streets 2,108,558 - 2,108,558 - -
Capital projects 6,729,893 - 6,729,893 - -
Franchise agreement 359,273 - 359,273 - -
Endowments
Expendable 35,550 - 35,550 - -
Nonexpendable 69,412 - 69,412 - -
Other 1,467,785 - 1,467,785 - -
State statute - - - 145,286 -
Minority interest - - - 1,564,375 -
Unrestricted (5,280,715) 12,321,125 7,040,410 5,327,143 14,175,038
TotalNetAssets $ 320,745,754 $ 133,564,568 $ 454,310,322 $ 11,867,511 $ 14,175,038
See notes to financial statements. 25
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JCTNE 30, 2009
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
Program Revenues
Operating Capital
Charges for Grants and Grants and
Expenses Services Contributions Contributions
$ 22,038,265 $ 2,020,675 $ 770,236 $ 48,000
19,n79,6RR 4,456,364 4,R1u,RU3 2,443,17n
849,237 114,992 62,663 -
12,64u,716 2,279,688 21u,nR1 1,3n1,4R5
12,693,140 263,434 6,743,481 1,015,016
6,423,908 1,179,171 2,703 4,058
3,164,126 - - -
76,889,080 10,314,274 12,599,967 4,811,729
6,326,708 5,904,535 - 2,029,347
6,100,491 5,320,642 - 448,135
2,138,198 2,291,249 - 949,199
2,147,4u5 2,224,185 - R6,64n
61,927 - - lnu,nnn
2,788,665 2,872,649 - -
2,625,145 196,26n 1,n95,946 -
22,188,539 18,809,520 L095,946 3,613,321
$ 99,077,619 $ 29,123,794 $ 13,695,913 $ 8,425,050
Component units
Dubuque Metropolitan Area Solid Waste Agency $ 3,R77,9n1 $ 2,776,19n $
Dubuque Initiatives and Subsidiaries 279,n63 1n1,951
Totalcomponentunits $ 4,156,964 $ 2,878,141 $
General revenues
Property taxes
Local option sales tax
HoteUmotel tax
Utility franchise fees
Gaming
Unrestricted investment earnings Qoss)
Gain on disposal of capital assets
(nher
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
R,4u5 $ -
- lu,n44,999
8,405 $ 10,044,999
See notes to financial statements.
9Z
8£n`SLI`bi $ IIS`L98`II $ ZZ£`ni£`bSb $ 895`b95`££I $ bSL`SbL`nZ£ $
Zib`69Z`b Inb`69Z`ZI Zn6`£Ui`bSb 988`IL6`9ni 9In`Zni`Lb£
9Z9`Sn6`6 Gi68`Inb) nZb`9£Z Z89`Z65`9Z (Z9Z`95£`9Z)
6£L~L£ 9Ib~i69 %3%~69U~3b b£b~%9%~S% 3b3~9U3~%%
- - - Z36~9Z3~bZ (Z86`9Z8`bZ)
- - Sn9`8I6 - Sn9`8I6
n9b`SS b£S`6L£ Ui8`6nb bn£`Z £n5`Uib
(IZL`LD Z88`II£ I95`8b9`Z 8bi`££b £Ib`SIZ`Z
- - I6£~L%9~6 - I6£~L%9~6
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- - b56~ii9~i - b56~ii9~i
- - £53~6b9~L - £53~6b9~L
- - 6I8`9IL`£Z - 6I8`9IL`£Z
L33~L93~6 (90£~£60~I) - -
L88`L98`6 - - -
- (9n£`£6n`D - -
- - (Z93~Z£3~Lb) 3bZlJ££~I GJII~£9I~6b)
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- - (6£6`Z££`D (6£6`Z££`i) -
- - b~6`£~ b~6`£~ -
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- - nZb`£9I nZb`£9I -
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- $ - $ ~bUb~66I~6U $ - $ ~bUb~66I~6U $
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pue prloS eat aciF,;-ssaursng Ie;uaunuano~
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CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FCTNDS
JCTNE 30, 2009
ASSETS
C:a,h and pooled cah investments
Receivables
Property Tux
Delinquent
Succeeding year
Account, and other
Special assessments
Accmed interest
Notes
Intergovernmental
Due from other fund,
Inventorie,
Advance, To other fund,
Prepaid items
Restricted cash and pooled cash
investments
Totat A„eta
EIHIBIT 3
Special Revenue Capital Proiects Other
Employee Community Sfreet General Governmental
General Benefits Development Constmcfron Construction Funds Total
$ 18,674,087 $ - $ 1,449,411 $ 1,494,169 $ 5,912,027 $ 7,585,757 $ 35,115,451
z37,5oa 30,191 - - - x,349 z7o,oaa
16,847,899 1,753,390 - - - 494,155 19,095,444
1,515,477 - - - - 47,856 1,563,333
- - - - - 633,997 633,997
112.017 - 38.543 7,200 813 07,130 220.303
- - 10,ooo,aoo - - 1,807 1o,ooz,zl3
1,a3?37a - z35,8oz 1,aaz,oao - o99,aoz 3,81a,o8a
174,424 - - 174,424
164,868 - - - - - 164,868
208,804 - - - - - 208,804
17,392 - 10,372 - - - z7,7oa
- - - - z,o8z,79a 3,720,870 5,8o9,ooa
$ 39,390,446 $ 1,783,581 $ 12,334,594 $ 2 943,415 $ 7,995,634 $ 13,259,323 $ 77,706,993
LIABILITIES AND FLIND
BALANCES
LIABILITIE S
Accounts payable $ 1,782,073 $ - $ 284,059 $
Accmed payroll 945,425 - 28,182
Intergovernmental payable - - -
Deferredrevenue
Succeeding year property tax 16,847,899 1,753,390 -
Other 743,567 4,683 -
Total Liabiliries 20,319 504 1,758,073 312,841
FUND BALANCES
Reserved for/by
Encumbrance, 4,655,897 - 629,451
Long-term note, receivable - - 9,884,557
Advance, 208,804 - -
Bond ordinance - - -
Debt service - - -
FrancMse agreement - - -
Endowments - - -
Umeserved
Designated for
Future equipment and capital
maintenance 3,213,079 - -
Future cash flow 5,378,882 - -
Undesignatedreported in
General fund 5,614,220 - -
Special revenue funds - 25,508 1,507,745
Capital projects funds - - -
Permnnentfunds - - -
Total Fund Balances 19,070,882 25,508 12,021,753
Total Liabilities and Fund
Balance, $ 39,39Q,446 $ 1,783,581 $ 12,334,594 $
See notes to financial statements.
291,520 $ 1,500,180 $ 374,187 $ 4,239,225
- - 102,078 1,075,085
- - 18,800 18,800
- - 494,155 19,095,444
1,042,786 - 1,105,462 2,896,498
1,334,30ti 1.500.180 2,094,ti82 27,325,ti52
673,206 3,792,710 976,616 10,727,880
- - 1,111 9,885,668
- - - 208,804
- - 3,002,755 3,002,755
- - 3,155 3,155
- - 1.332 1.332
- - 69,412 69,412
3 213,079
5,378,882
- - - 5,614,220
- - a,aa8,137 5981,390
935,903 2,090,738 2,020,573 5,059,214
- - 35,550 35,550
1,009,109 o,a89,aa8 11,104,041 50,381,341
2,943,415 $ 7,995,634 $ 13,259,323 $ 77,706,993
27
CITY OF DUBUQUE, IDWA EIHIBIT 3-1
RECONCILIATION OF THE GOVERNMENTAL FIINDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JCTNE 30, 2009
Totalfund balances-governrnentalfunds $ 50,381,341
Amounts reported for the governrnental activities in the statement of
net assets are different because:
Capital assets used in governrnental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets $ 408,676,982
Accumulated depreciation (88,132,732)
320.544.250
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds. Those revenues consist of:
Property tax 34,712
Special assessments 459,950
Other 1,738,473
2.233.135
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 governrnental
activities in the statement of net assets. 2.810.457
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 (25,941,693)
Tax increment financing bonds (24,363,262)
Notes payable (1,169,684)
Loans payable (150,000)
Accrued interest (280,681)
Compensated absences (2,594,380)
Net OPEB liability (723,729)
(55,223,429)
Net assets of governmental activities $ 320,745,754
See notes to financial statements. 28
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENIIES, EYPENDITIIRES, AND CHANGES IN FIIND BALANCES
GOVERNMENTAL FIINDS
FOR THE YEAR ENDED JCTNE 30, 2009
REVENUES
Taxi,
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fine, and forfeit,,
Inve,tment earning,
Contributions
Deming
Miscellanzous
Total Revenue,
E4PENDITURES
Current
Public safzty
Public work,
Health and social services
Culture and recreation
Community and zconomic
development
General government
Debt ,ervice
Capital project,,
Total Expenditure,
EkCE SS (DEFICIENCYI OF
REVENUES OVER (UNDERI
E4PENDITURES
UTHER FINANCING
SOURCES (USESI
Issuance of debt
Discount on bonds
Transfers in
Tran,fer, out
Sale of capital a„eta
Total Uther Financing
Souroes (USesl
NET CHANGE IN FUND
BALANCES
FUND BALANCES,
1610,959) (91,7661 1433,x911 (32x,x511 (12,582,807) (2,x85,x011 (16,528,875)
BEGINNING 19,ti81,8a1 117,27a 12,a55,2aa 1933,Sti0 19,072,255 13,ti50,0a2 titi,910,21ti
FUND BALANCES, ENDING $ 19,070,882 $ 25,508 $ 12,021,753 $ 1,ti09,109 $ ti,a89,aa8 $ ll,ltia,tial $ 50,381,3x1
EXHIBIT 4
Special Revenue Capital Proiects Other
Employee Community Street General Governmental
General Benefits Development Constmction Cgnshuction Funds Total
$ 23,x37,xlx $ 2,087,512 $ - $ 2,29x,955 $ - $ 6,63x,265 $ 3x,x5x,146
- - - - - 250,372 250,372
1,088,38ti - - - - - 1,088,38ti
~;zao,598 - ~,87a,751 oz3,loz ~,1~0 10,o5o,z51 15,79o,82z
7,858,819 - - - - 170,370 8,029,189
199,839 - - - - - 199,839
1,097,085 - 138,772 3x,x3x x2 x,043 512,0x8 2,206,382
l,1a8,1aa - - 95,73a - 125,881 1,309,759
9,ti27,391 - - - - - 9.027,391
782,titi3 - 78,320 2,000 - 737,ti9ti 1,ti00,ti79
x7,x86,339 2,087,512 3,091,8x3 3,050,225 x26,163 18,x80,883 7x,622,965
21,179,647 - - - - 155,545 21335,192
8,560,609 - 207,201 - - 5,493,741 14,261,551
704,573 - 83,724 - - 27,576 815,873
11,993,234 - 126,228 - - 108,044 12,227,506
3,oo7,7a7 - ~~8o,oa1 - - S,o59,a91 11953,279
S,2oo,alo 3za - - - 030.099 5,830.839
50,060 - - - - 5,214,784 5,264,844
- - - 3,698,236 16,957,112 3,618,772 24,274,120
50,696,286 324 3,703,194 3,698,236 16,957,112 20,914,052 95,969,204
(3 09947) 2,087,188 (611,35 1ti48,0111 (16,530949) (2,433,169) (21 34ti,239)
~,584,ti00 - - - 3,320,400 - 5,905,000
rza,137t - - - rza,379I - ia8,51oi
2,895,02x - 177,860 507,983 1,092,333 2,777,952 7,x51,152
(3,x3Q,630) (2,178,95x) - (18x,x23) IxbQ,037) (2,83Q,18x) (9,08x,228)
57x,131 - - - 19,825 - 593,956
2,598988 (2,178,954) 177,860 323,560 3,948,142 (52,232) 4,817,364
See notes to financial statements. 29
CITY OF DUBUQUE, IDWA EIHIBIT 4-1
RECONCILIATION OF THE GOVERNMENTAL FIINDS STATEMENT OF REVENIIES,
EIPENDITIIRES, AND CHANGES IN FIIND BALANCES TO THE STATEMENT
OF ACTIVITIES
FOR THE FEAR ENDED JCTNE 30, 2009
Net change in fund balances -total governmental fund, $ 116,528,875)
Amounts reported for govemmental acfivifies in the statement of acfivifies ere
different because:
Capital outlay, are reported a, etpenditures in governmental fund,. However, in the
statement of acfivifies, the cost of capital assets is allocated over their esfimated useful lives
and reported as depreciafion expense. In the current period, these amounts are:
Capital a„eta eayended in govemmental fund, $ 27,q-}1,063
Transfers of capital a„eta from enterprise fund, 47,315
Transfers of capital assets to enterprise funds (23?41;L211
Depreciafion expense (7,513? 11)
(3,266,054)
In the statement of acfivifies, only the gain or loss on the ,ale of capital a„eta is reported,
whereas in the govemmental fund-,, the entire proceed, from the ,ale 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. (1,749,1 ti31
Because some revenue, will not be collected for several month, after the C'ity',
fiscal year end,, they are not considered "available" revenue, and are deferred
in the govemmental funds. Deferred revenues increased by these amounts this year:
Propzrty tas 4,118
Special assessments 1ti5 3ti9
Other 159,843
329,330
Debt proceed, provide current financial resources to govemmental fund,, but
issuing debt increases long-term ]iabilifies in the statement of net assets.
Repayment of debt principal is an expenditure in the governmental funds,
but it reduces long-term liabilifies in the statement of net assets and does not
affect the statement of activifies. Also, govemmental fund, report the effect of
issuance discounts when debt is first issued, wherea, these amounts are deferred
and amortized in the statement of activities.
Debt proceeds 15,905,000)
Discount,, on bond, issued 48,516
Debt repayment,, 2,169,678
Some items reported in the statement of acfivifies do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds. These items consist of.
(3,686,8061
Increase in accmed interest 142,7861
Amortization of bond discount (2ti,1741
Increase in compensated absences 154,2351
Increase in net OPEB liability (723,729)
Total additional eayenses 846,924)
Internal service fund, are used by management to charge the cost+ of certain
acfivifies to individual funds. The net revenue of the internal service funds is
reported with governmental acfivifies. (ti07,770)
Ckiange in net asset,, of governmental acfivifies $ (26,356,262)
See notes to financial statements. 30
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JCTNE 30, 2009
Business-type Activities -
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Inventories
Total Current Assets
NONCURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
hnprovements other than buildings
Machinery and equipment
Construction in progress
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
Sewage
Disposal Water Stormwater
Works Utility Utility
Parking
Facilities
$ 5.085.162 $ 2.087.935 $ 3.615.563 $ 498.052
1,043,834 819,605 308,059 62,335
22,229 9,540 13,140 6,500
- - 106,150 -
- 465,003 - -
6,151,225 3,382,083 4,042,912 566,887
- 129.642 - 640.515
167.855 37.449 4.597.638 1.388.072
31.590.936 8.214.651 - 43.421.538
32.563.154 520.295 28.493.047 2.391.526
9,978,592 35,578,672 925,265 1,196,772
1,741,487 87,257 7,717,890 12,205
(38,116,841) (19,504,674) (8,319,446) (7,780,838)
37,925,183 24,933,650 33,414,394 40,629,275
37,925,183 25,063,292 33,414,394 41,269,790
44,076,408 28,445,375 37,457,306 41,836,677
EIHIBIT 5
Enterprise Funds
America's (hher
River Enterprise
Project Funds
Total
Governrnental
Activities-
Internal
Service Funds
$ 54.365 $ 868.830 $ 12.209.907 $ 4.082.655
54,365
342.728
3,930
925,294
23,554
2,164,336
36.000
1.887.564
5,282,916
(5,078,343 )
2,128,137
2,128,137
54.365 4.292.473
2.576.561
55,339
1,031,444
488,557
16,361,808
164.380
15,823
45,265
4,308,123
770.157
6.227.014
85.114.689
63,968.022
52,962,217
9,558,839
178.800.1421
139,030,639
139,800,796
102,034
(5 7,6201
aa,ala
aa,ala
156.162.604
4,352,537
(continued)
31
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JCTNE 30, 2009
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable -current
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Accrued interest payable
Due to other funds
Advances from other funds
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
General obligation bonds payable
(net of discount of $108,114 and deferred
amount on refunding of $98,116)
Revenue bonds payable
Capital loan notes payable
Net OPEB liability
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted by bond ordinance
Unrestricted
Total Net Assets
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 740,626 $ 199,047 $ 153,516 $ 39,341
55,741 58,841 4,625 20,939
- - - 18,911
105,000 160,000 415,000 144,050
- 70,000 - 250,000
34,332 29,997 77,286 -
102,176 113,706 4,380 21,652
2,815 9,075 24,243 1,979
- 208,804 - -
1,04Q690 849,470 679,050 496,872
- - - 371,979
845,868 1,284,349 8,942,054 2,552,449
- 1,114,713 - -
914,558 799,087 2,058,816 -
49,107 50,109 9,020 16,035
1,809,533 3,248,258 11,009,890 2,940,463
2,850,223 4,097,728 11,688,940 3,437,335
36,328,822 21,997,748 22,726,693 37,291,886
- 129,642 - 640,515
4,897,363 2,220,257 3,041,673 466,941
$ 41,226,185 $ 24,347,647 $ 25,768,366 $ 38,399,342
See notes to financial statements.
EIHIBIT 5
(continued)
Enterprise Funds
America's (hher
River Enterprise
Project Funds
Total
Governrnental
Activities-
Internal
Service Funds
$ 924 $ 54.513 $ 1.187.967 $ 1.496.748
- 99.107 239.253 43.361
- - 18,911 -
- - 824,050 -
- - 320,000 -
- - 141.615 -
- 142.695 384.609 -
- - 38.112 -
- 172,453 172,453 1,971
- - 208.804 -
924 468,768 3,535,774 1,542,080
- - 371.979 -
- - 13,624,720 -
- - 1,114,713 -
- - 3,772,461 -
- 54.118 178.389 -
- 54.118 19.062.262 -
924 522,886 22,598,036 1,542,080
- 2.128.137 120.473.286 44.414
- - 770,157 -
53,441 1,641,450 12,321,125 2,766,043
$ 53,441 $ 3,769,587 $ 133,564,568 $ 2,810,457
32
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENIIES, EYPENSES, AND CHANGES IN FIIND NET ASSETS (DEFICIT)
PROPRIETARY FIINDS
FOR THE YEAR ENDED JCTNE 30, 2009
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING ENPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (ENPENSES)
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain on disposal of assets
NetNonoperating 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, ENDING
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works IItility IItility Facilities
$ S,R26,34R $ 5,300,597 $ 2,273,R74 $ 2,172,761
7R,1R7 20,045 17,375 51,424
5,904,535 5,320,642 2,291,249 2,224,1R5
2,212,548 2,241,602 187,442 692,046
594,169 56R,R00 63 116,4R2
325,312 161,531 - 64,619
1,876,597 2,144,898 1,203,242 497,369
84,547 78,830 - 41,969
1,195,979 766,974 378,154 583,127
6,289,152 5,962,635 1,768,901 1,995,612
(3R4,617) (641,993) 522,34R 22R,573
- - 949 -
179,n16 70,343 109,332 46,1R0
5,019 1,R25 145,569 R6,640
(37,556) (137,R56) (369,297) (151,793)
x,126 12R - -
148,605 (65,560) (113,447) (18,973)
(236,012) (707,553) 4nR,9n1 209,600
2,024,328 446,310 802,681 23,241,221
2,980 - 523,143 7,000
(10,368) (15,350 - (221,595)
1,7RU,92R (276,595) 1,734,7?5 23,236,226
39,445,257 24,624,242 24,033,641 15,163,116
$ 41,226,185 $ 24,347,647 $ 25,768,366 $ 38,399,342
See notes to financial statements.
EIHIBIT 6
Enterprise Funds Governmental
America's Othey Activities-
River Enterprise Internal
Project Funds Total Service Funds
$ - $ 3,u53,R9n $ 1R,627,47n $ 9,125,443
- 15,n19 182,u5n 3n7,269
- 3,n6R,9n9 1R,Rn9,52n 9,432,712
4,774 2,973,181 8,311,593 2,055,982
- 74,346 1,353,R6n 24,n42
- 734,122 1,285,584 21,371
57,153 1,147,553 6,926,812 7,524,140
- 74,917 280,263 559,019
- 409,691 3,333,925 7,706
61,927 5,413,810 21,492,037 10,192,260
(61,927) (2,344,9n1) (2,682,517) (759,54R)
100,000 1,095,946 1,196,895 -
- 2R,277 433,14R 149,483
- - 239,u53 -
- - (696,Sn2) -
- Sn ~,3n4 x,295
100,000 1,124, 273 1,174, 898 151, 778
3R,n73 (1,22u,62R) (1,Sn7,619) (6n7,77n)
- - 26,514,540 -
46,315 1,253,638 1,833,076 -
(247,315) -
R4,3RR 33,n1n 26,592,682 (6n7,77n)
(3u,947) 3,736,577 1n6,971,RR6 3,41R,227
$ 53,441 $ 3,769,587 $ 133,564,568 $ 2,810,457
33
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FIINDS
FOR THE YEAR ENDED JCTNE 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROMNONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Proceeds from interfund balances
Payment of interfund balances
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES
CASH FLOW S 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
Contributions
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROMINVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND CASH
E(1LII VALENT S
CASH AND CASH E(1LIIVALENTS, BEGINNING
CASH AND CASH E(1LIIVALENTS, ENDING
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 5.862.946 $ 5.265.212 $ 2.193.396 $ 2.171.931
(2,367,505) (2,971,040) (1,364,322) (701,433)
(2,145,942) (2,179,398) (173,823) (674,022)
78,187 20,045 17,375 51,424
1,427,686 134,819 672,626 847,900
2,980 - 523,143 7,000
(10,368) - - (221,595)
- (45.579) - -
(7,388) (45,579) 523,143 (214,595)
2.126 128 - -
(2,200,592) (819) (5,721,795) (635,218)
809,362 1,598,993 6,038,576 453,750
(100,000) (194,000) (443,000) (477,860)
(37,183) (133,454) (359,408) (151,432)
5.019 1.825 40.368 86.640
(1,521,268) 1,272,673 (445,259) (724,120)
184,376 67,354 111,095 48,452
83,406 1,429,267 861,605 (42,363)
5,001,756 788,310 2,753,958 1,180,930
$ 5,085,162 $ 2,217,577 $ 3,615,563 $ 1,138,567
b£
(panuuuoa)
SS9`Z80`b $ b90`086`Zi $ 0£8`898 $ S9£`bS $
8bZ`ZL8`b LOi`OLb`Oi £Si`SbL -
(£6S`68L) LS6`60S`Z LL9`£Zi S9£`bS
SOZ`6Si ii6`6£b b£9`8Z -
S6Z'Z (OLi'69b'i) (£Li'iZi) LL6'69
- 000'001 - 000'001
- ZS8'££i - -
- (LLb'i89) - -
- (098`biZ`i) - -
- 189`006`8 - -
- (OL9`60L`8) (£ZZ`iZi) (£ZO`0£)
S6Z'Z b0£'Z OS -
iL6'i iii'b6£'Z SiZ'Z60'Z Si£'9b
- 9£8`9bi`i 9£8`9bi`i -
- (8£8'£S£) (6SZ'80£) -
iL6`i - - -
- (£96`1 £Z) - -
- 9L0`££8`i 8£9`£SZ`i Si£`9b
(b90`£S6) SOi`Sbi`i (666`SL8`i) (LZ6`i9)
spun3 aarnzaS Ie;oZ spun3 ;aalozd
Ieuza;ul asuclza;ug zanr~
-saurnuad zaq;0 s,eauau~
Ie;uaunuano~ spun3 asizdza;ug
69Z'LO£ OSO'Z8i 6i0'Si -
(SLi'SSO'Z) (i9S'6b0'8) (Z09'iL8'Z) (bLL'b)
(£i6'98Z'8) (88b'S6b'6) (S£0'b£0'Z) (£Si'LS)
SSL'i80'6 $ b0i'80S'8i $ 6i9'bi0'£ $ -
L ,LIgIHY~
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FIINDS
FOR THE YEAR ENDED JCTNE 30, 2009
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss) $ (384,617) $ (641,993) $ 522,348 $ 228,573
Adjustments to reconcile operating income Qoss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
(Increase) decrease in receivables
(Increase) decrease in inventories and prepaid items
Increase (decrease) in accounts payable
Increase in accrued liabilities
Decrease in unearned revenue
Increase in net OPEB liability
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
1,195,979 766,974 378,154 583,127
36,598 (35,385) (80,478) 5,587
5,339 (19,082) - -
507,781 2,101 (161,017) 19,006
17,499 12,o9s 4,x99 1,989
- - - (6,417)
49,107 50,109 9,020 16,035
1,812,303 776,812 150,278 619,327
$ 1,427,686 $ 134,819 $ 672,626 $ 847,900
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributions of capital assets from other funds and
outside sources $ 2,024,328 $ 446,310 $ 802,681 $ 23,241,221
Contributions of capital assets to Governmental Activities $ 10,368 $ 15,352 $ - $ 21,595
See notes to financial statements.
EIHIBIT 7
(continued)
Enterprise Funds
America's Other
River Enterprise
Project Funds
Total
Governmental
Activities-
Intemal
Service Funds
$ (61.927) $ (2.344.901) $ (2.682.517) $ (759.548)
409.691 3.333.925 7.706
(39,271) (112,949) (43,688)
(6,179) (19,922) 12,373
3,082 370,953 (170,714)
47,461 83,643 807
- (6.417) -
54,118 178,389 -
468,902 3,827,622 (193,516)
$ (61,927) $ (1,875,999) $ 1,145,105 $ (953,064)
$ - $ - $ 26,514,540 $ -
$ - $ - $ 47,315 $ -
35
CITY OF DUBUQUE, IDWA EIHIBIT 8
STATEMENT OF FIDIICIARY ASSETS AND LIABILITIES
AGENCY FIINDS
JCTNE 30, 2009
Agency
Funds
ASSETS
Cash and pooled cash investments $ 1.123.790
Accounts receivable 5.559
Accrued interest 3.238
Total Assets $ 1,132,587
LIABILITIES
Due to other agency $ 1,132,587
See notes to financial statements. 36
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part
of this report. The index to the notes is as follows:
1. Summary of Significant Accounting Policies
2. Deficit Fund Equity
3. Cash on Hand, Deposits, and Investments
4. Notes Receivable
5. Interfund Balances and Transfers
6. Capital Assets
7. Long-Term Debt
8. Risk Management
9. Commitments and Contingent Liabilities
10. Other Postemployment Benefits ((~PEB)
11. Employee Retirement Systems
12. Landfill Closure and Postclosure Care
13. Leases Where City is Lessor
14. Subsequent Events
15. New Governrnental Accounting Standards Board (GASB) Standards
37
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JIINE 30, 2009
NOTE 1- SLIlVIMARY OF SIGNIFICANT ACCOIINTING 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 IInited States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the governrnent-wide financial statements to
emphasize that they are legally separate from the City. The component units also have June 30 year ends.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E of
the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to provide
solid waste management for the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible for the day-to-day operations
of the Agency. The Agency is presented as a proprietary fund type.
Dubuque Initiatives and Subsidiaries is anon-profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque, Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type.
Complete financial statements for the Component IInits may be obtained from the City of Dubuque's
Finance Department for the Dubuque Metropolitan Area Solid Waste Agency and Economic
Development Office for Dubuque Initiatives and Subsidiaries.
City of Dubuque
50 West 13`h Street
Dubuque, Iowa 52001
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing financial
interest or responsibility by the participating governments. City officials are members of the following
boards and commissions:
City of Dubuque Conference Board
Dubuque County E-911 Committee
Dubuque Drug Task Force
(continued on next page) 38
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Government-wide and Fund Financial Statements
The governrnent-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 governrnent and its component
units. For the most part, the effect of interfund activity has been removed from these statements.
Grn~ernmental activities, which normally are supported by taxes and intergovernrnental revenues, are
reported separately from business-hpe activities, which rely to a significant extent on fees and charges for
services. Likewise, the primary grn~ernment is reported separately from the legally separate component
units for which the primary governrnent is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governrnental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the governrnent-wide financial statements. Major individual
governrnental 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 governrnent-wide financial statements are reported using the econornic resources rneasurernent 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 rneasurernent
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 ai~ailable when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period (year-end). 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 governrnental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general governrnent, except those required to be accounted for in another fund.
(continued on next page) 39
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
The Ernplrn~ee 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 governrnental agencies.
The Street Construction Fund is used to account for the resources and costs related to street
capital improvements.
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 SeN~age Disposal lI'orh-s Fund is used to account for the operations of the City's sewage
disposal works and services.
The lf'ater Utility Fund is used to account for the operations of the City's water facilities and
services.
The Storrnroeater Utility Fund is used to account for the operations of the City's stormwater
services.
The Parh-ing Facilities Fund is used to account for the operations of the City-owned parking
ramps and other parking facilities.
The.4merica'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 econornic
resources measurement focus and the fitill accrual basis of accounting. Agency funds use the fitill 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 governrnent-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. Governrnents 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.
(continued on next page) 40
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
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 revemres rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund's principal ongoing operations. The principal operating revenues of
the City's enterprise funds and of the City's internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and umestricted 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 bavestrnerats
The City's cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
Investments are stated at fair value or amortized cost. Amortized cost is used only_ for money_ market
investments that have a remaining maturity at time of purchase of one year or less.
Receivables arad Pm~ables
Activity between funds that are representative of lending/borrowing arrangements outstanding at year-end
are referred to as either "due to/from other funds" (i.e., the current portion of interfund loans) or
"advances to/from other funds" (i.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as "due to/from other funds." Any residual balances outstanding
between the governmental activities and business-type activities are reported in the governrnent-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.
(continued on next page) 41
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Property tax receivable is recognized in the funds on the levy or lien date, which is the date that the tax
asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax
receivable represents taxes collected by the County but not remitted to the City at June 30, 2009, and
unpaid taxes. The succeeding year property tax receivable represents taxes collected by the County but
not remitted to the City at June 30, 2009, and unpaid taxes. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the
budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor
by March 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
governrnent-wide and fund financial statements and will not be recognized as revenue until the year for
which it is levied.
Property taxes are levied as of July 1 on property values assessed as of January 1 of the previous year.
The tax levy is divided into two billings. The billings are due September 1 and March 1. On September 30
and March 31, the bill becomes delinquent, and penalties and interest may be assessed by the government.
Im~entories ana'Pre~aia'Items
Inventories included in the governrnental funds are valued at cost using the first-in, first-out (FIFO)
method. The costs of governrnental fund inventories are recorded as expenditures when consumed rather
than when purchased.
Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on
the FIFO method.
Inventories included in internal service funds are stated at the lower of cost (FIFO method) or market and
consist of consumable supplies. The cost of these supplies is recorded as an expense at the time they are
removed from inventory for use.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The costs of governrnental fund prepaids are recorded as expenditures when consumed
rather than when purchased.
Restricted.4ssets
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 sheetlstatement 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) 42
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Capitad.4ssets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governrnental or business-type activities
columns in the governrnent-wide statement of net assets and in the proprietary funds statement of net
assets. Capital assets are defined by the governrnent 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 not adding to the value of the
asset or materially extending asset lives are not capitalized. All of the City's infrastructure has been
recorded, including infrastructure acquired prior to June 30, 1980.
Major outlays for capital assets and improvements are capitalized as projects are constructed. 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 governrnent, 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
Compensatea'.4bsences
The City allows employees to accumulate a limited amount of earned but unused vacation and sick pay
benefits. Vacation pay is payable to employees upon retirement or termination. Sick pay is payable only
upon retirement, in which event employees are paid for 25°'0 of all eligible hours (50°'o in the case of
police and fire employees). All vacation pay and applicable sick pay benefits are accrued when incurred
in the governrnent-wide and proprietary fund financial statements. A liability for these amounts is
reported in governrnental funds only if they have matured, for example, as a result of employee
resignations and retirements.
Long-Terra Ofiligatioras
In the governrnent-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 governrnental
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, governrnental 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) 43
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Equih~
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°'0 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, governrnental funds report reservations of fund balance for amounts not
available for appropriation or legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.
Brtia'gets ana'Brtia'getary.4ccortinting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
During the year ended June 30, 2009, disbursements did not exceed the amounts budgeted in any
function.
Other Sig~aifrca~at.4ccotnati~ag Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
NOTE 2 -DEFICIT FIIND EQIIITY
The following funds have deficit net asset amounts as of June 30, 2009:
Internal Service
General Service
Stores/Printing
Workers' Compensation Reserve
$ ls,o74
$ 5,056
$ 419,230
The General Service and Stores/Printing deficits 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 $11,562 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 $31,250,357, and the bank balance was
$33,224,946. The City's deposits in banks at June 30, 2009, 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.
(continued on next page) 44
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCTNE 30, 2009
The carrying amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$10,754,731, and the bank balance was $11,026,563. The Agency's deposits in banks at June 30, ?009,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
Investments. As of June 30, ?009, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Tnvestment Tvne
Tnvestment Maturities (Tn Yearsl
Tess than 1 1 to 5 6 to 11)
$ 2,1165,957 $ - $ -
Zu5,617 Z,Z17,713 Z23,R69
- RnR,R44 -
1,664,32n R,743,Z65 Z,RR4,45n
57.412 - -
More than 1 U Total
Mutual Funds
U.S. Treasury
U.S. Treasury Securities
Municipal Bonds
Federal Agency Obligations
Corporate Stock
$ - $ 2,1165,957
- x,647,199
- RnR,R44
R,97R,ZSR Z2,Z7QZ93
- 57.412
S 3.993306 S 11.769_R22 S 3_1OR319 S R_97R?SR S ZZR49.705
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 Rish-. 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.
Crea'it Rish-. The City's investment policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City's investments in municipal bonds were rated A or better.
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.
Crtistodial Credit Rish-- DeRosits. 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.
(continued on neat page) 45
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Custodial Credit Risk-havestrnerats. For an investment, this is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City had no custodial risk with regards to investments,
since all investments were held by the City or its agent in the City's name.
Due to legal and budgetary reasons, the general fund is assigned a portion of the investments earnings
associated with other funds. These funds are the employee benefits, community development, tort
liability, road use tai, 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, 2009.
A reconciliation of cash and investments as shown on the governrnent-wide statement of net assets for the
primary governrnent 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
$ 11,562
31,250,357
27.849.705
$ 59.111.624
$ 51,408,013
6, 510, 409
69,412
1.123.790
Total 59.111.624_
A reconciliation of cash and investments as shown on the governrnent-wide statement of net assets for the
Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand
Carrying amount of deposits
Total
Cash and pooled cash investments
Cash and pooled cash investments -temporarily restricted
Total
450
10.754.731
$ 10,755,181_
7,079,423
3.675.758
~ 10 755 181
(continued on next page) 46
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCrNE 30, 2009
Dubuque Initiatives and Subsidiaries. At June 30, 2009, Dubuque Initiatives and Subsidiaries had the
following cash and investments:
Deposits $ 35,560,562
Repurchase agreement 529,112
Beneficial interest in assets held by others 828,215
Investment in partnership 297.917
Total $ 37,215,806
NOTE 4 -NOTES RECEIVABLE
At June 30, 2009, Dubuque Initiatives and Subsidiaries had the following notes receivable:
Grand River Development, LLC, 5.50°'0, unsecured, matures May 2017
Lower Main Development, 4.00°-u, unsecured, matures August 2018
City of Dubuque, 5.00°'0, unsecured, matures July 2023
Roshek Building Investment Fund, LLC, 4.74°-u, collateralized by a
pledge agreement, matures June 2039
Roshek Building Investment Fund, LLC, 4.74°-u, collateralized by a
pledge agreement, matures June 2039
Roshek Building Investment Fund, LLC, 4.74°'0, collateralized by a
pledge agreement, matures June 2039
Total notes receivable
Less: current maturities
Noncurrent portion
NOTE 5 - INTERFIIND BALANCES AND TRANSFERS
$ 326,787
130,602
390, 889
6, 500, 000
9, 797, 991
5.294.384
22,440,653
(65.2731
$ 22.375.380
Interfund balances at June 30, 2009, 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
nonrnajor enterprise funds ($172,453) and the internal service funds ($1,971) for deficit pooled cash
balances. Advances to/from other fund balance of $208,804 represent amounts due to the general fund
from the water utility fund for a construction loan.
(continued on next page) 47
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JClNE 30, 2009
Interfund transfers for the year ended June 30, 2009, consisted of the following:
Transfer from
Transfer to
General
Community development
Street con,frucfion
General con,tmcfion
Nonmajor governmental
Sewage disposal works
Stormwater ufility
Parldrtg fecilifies
America's River Project
Nonmajor enterprise
General
90,000
123,625
1,482,066
az? 980
7,000
4ti,315
1,253,ti38
$ 3,430,630
Nonmajor
Employee Street General Governmental Parking
Benefit, Contmcfion Con,frucfion Fund-, Facilifie,
$ 2,17895a $ loa,a9o $ 300,000 $
8,751 _
71,182 160,037
311,580 $
177,8ti0
417,983
959,957
864,667
? 980
95,157
200,000
$ 2,178,954 $ 184,423 $ 460,037 $ 2,830,184 $ 200,000
Transfer to governmental acfivifies capital assets from enterprise funds
a~ 315
$ 9,331.543
In the fund financial statements, total transfers out of $9,284,228 are greater than total transfers in of
$9,331,543 because of the treatment of transfers of capital assets to the governrnental activities capital
assets. During the year, capital assets related to a phone system with a book value of $47,315 were
transferred to governrnental activities capital assets. No amounts were reported in the governrnental
funds, as the amounts did not involve the transfer of financial resources. However, Sewage Disposal
Works, Water Utility, and Parking Facilities 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.
Transfers from governrnental activities to the business-type activities on the statement of activities
includes the transfer of the Port of Dubuque Parking Facility in the amount of $23,241,221. This
transaction is reported as a capital contribution in the Parking Facilities Proprietary Fund.
Total
$ 2,895,024
177,8ti0
507,983
1,092,333
2,777,952
~ 980
53,143
7,000
4ti,315
1253.ti38
9,284,228
(continued on next page) 48
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCINE 30, 2009
NOTE 6 -CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2009, was as follows:
Primary Government:
Governmental activities
Beginning
Balance
Capital a„eta, not being
depreciated:
Land $ 57,171,699 $
Consfruction in progress 14.044.930
Total capital assets, not
being depreciated 71.21fi 629
Capital assets, being
depreciated:
Buildings lOti,145,708
Improvement,, other
than building, 15,245,857
MacMnery and equipment 28,ti79,138
Infrasfructure 187.542.063
Total capital assets, being
depreciated 337.ti129titi
Less accumulated
depreciation for:
Building, (22,162,212)
Improvements other
than building, 15,041,462)
MacMnery and equipment (11,907,3571
Infrastructure X44.1 OtiJ771
Total accumulated
depreciafron (83217.8081
Total capital a„ets, being
depreciated, net 254394.958
Governmental acfrvifres
Transfers Transfers Ending
In Out Increases Decreases Balance
$ - $ 1,221,209 $ - $ 58,392,908
l23.24122L 25.724525 110389.616 6.138.618
(23241221 26.945.734 (10.3R9.616~ 64531526
3.053.731 (81,000) 109,118,439
- - 300,683 111,220) 15,535,320
x7,315 - 3,ti80,1ti0 11,30ti,502) 31,100,111
- - 3.850.371 (2.898.8141 188.493620
42315 - 10.884.945 ~429753ti1 344242490
11,790,360) 19,800 (23,932,772)
- - 1499,238) - 15,540,700)
- - (2,430 ?72) 1,051,469 (13,28ti,1ti0)
- - (2.801.0471 1.472104 X45.430.7201
- - (7.520.9171 2548.373 (88.190.3521
47.315 - 3364028 11.749.1631 256.057.138
capital assets, net 3?5 til 1.587 $ 42315 $ (232412211 $ 30309,7ti2 $ (12.138.779) $ 320588_titi4
Business-type activities:
Beginning Transfers Transfers Ending
Ralance in Uut increases Decreases _ Ralance
Capital assets, not being
depreciated:
Land $ 3,364,857 $ - $ - $ 2,862,157 $ - $ 6,227,014
Consfrucfron in progress 6390.936 - X47.315] R_56n 269 ~5351051~ 9.558.839
Total capital a„ets, not
being depreciated 9.755.793 - X47.315] 11.428.426 ~5351051~ _ 15.785853
(continued on next page) 49
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCiNE 30, 2009
Capital a„eta, being
depreciated:
Buildings
Improvement,, other
than building,
MacMnery end equipment
Total capital asset, being
depreciated
Beginrung Tranfers
Balance in
~ o1,8z8,334 ~ 23,241 ~21 ~
62,082,554
a92i z9i 3
i73_i29_ioi 2s_2ai?2i
Tranfers Ending
Chit increases Decreases Rnlnnce
- ~ 45,134 ~ - ~ 85,114,089
- 1,885,168 - 63,968,022
- 3.981 (~24 (237.3191 _ 52962217
- s_9i i v2s r2323i 91 _ 202 oaa_925_
Le„ accumulated
depreciation for:
Building, (37,904,904)
Improvement,, other
than buildings (16,934,7011
MaeMnery and equipment (20_R5R_R191
Total accumulated
depreciation (75_ti98.4241
Total capital assets, being
depreciated, net 97.430.677 23241 221
(999,934) - (38,904,838)
11,155,029) - (18,089,730)
i l_17R_9591 232.204 (21 ROi5741
r3333 yzzt z3z?o4 r78.8oo_l4zi
257R_003 ~i1151 123244986
Business-type activities
capital asset, net $ 107,186,470 $ 23,241,221 ~ 147.315) $ 14,006,429 $ 15,356,1661 $ 139,030,639
Depreciation expense was charged to functions/programs for the primary governrnent as follows:
Governmental activities
Public safety $ 861,736
Public works 4,691,292
Health and social services 7,068
Culture and recreation 1,682,186
Community and economic development 40,023
General governrnent 230,906
Capital assets held by the governrnent's internal service funds are
charged to various functions based on their usage of their assets 7.706
Total depreciation expense governmental activities $ 7,520,917
Business-type activities
Sewage disposal works $ 1,195,979
Water utility 766,974
Stormwater utility 378,154
Parking facilities 583,127
Refuse collection 94,503
Transit system 315.188
Total depreciation expense -business-type activities $ 3.333.925
(continued on next page) 50
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Component IInit:
Beginning
Balance
Ending
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
Improvements other than buildings
Machinery and equipment
Total capital assets, being depreciated
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total accumulated depreciation
Total capital assets, being depreciated, net
Dubuque Metropolitan Area Solid
Waste Agency capital assets, net
65,922
7,468,652
2.361.686
9.896.260
(45,787)
(5,569,875)
11.470.2631
(7.085.9251
2.810.335
$ 4,39fi,477 $
- - 65,922
- - 7,468,652
1.408.111 (988.9761 2.780.821
1.408.111 (988.9761 10.315.395
(719) - @6,506)
(435,385) - (6,005,260)
1307.0121. 758.261 11.019.0141.
(743.1161. 758.261 (7.070.7801.
664.995 (230.7151 3.244.6151
664,995= $ (230,7151 $ 4.830.707
Depreciation expense of $743,116 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
Gain on disposal of capital assets includes $380,800 in insurance proceeds. The book value of assets
disposed receiving insurance proceeds was $130,073, resulting in a net gain of $250,727.
NOTE 7 -LONG-TERM DEBT
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds have been issued for both
governrnental and business-type activities. The original amount of general obligation bonds issued in
prior years was $38,945,000.
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, 2009, 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.
(fin June 30, 2009, $3,345,000 of bonds outstanding are considered defeased. These bonds will remain
outstanding until they are called on June 1, 2010.
(continued on next page) 51
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JC/NE 30, 2009
Purnose
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
Corporate purpose
Corporate purpose
Corporate purpose
(taxable)
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
12/27/01 06/01/05-06/01/21 4.13-4.90°'0 $ 9,500,000 $ 7,325,000
01/09/02 06/01/04-06/01/21 4.20-4.95 2,860,000 2,080,000
03/26/02 06/01/03-06/01/21 4.10-5.00 1,000,000 735,000
12/03/02 06/01/03-06/01/17 3.50-4.30 3,105,000 1,445,000
10/15/03 06/01/04-06/01/23 3.20-4.75 2,110,000 1,595,000
04/18/05 06/01/06-06/01/24 3.30-5.00 9,015,000 7,430,000
04/03/06 06/01/07-06/01/25 3.80-4.20 2,900,000 2,595,000
04/03/06 06/01/07-06/01/21 3.65-4.20 910,000 775,000
04/03/06 06/01/10-06/01/20 3.65-4.10 3,525,000 3,525,000
12/01/07 06/01/10-06/01/17 3.75 2,965,000 2,965,000
12/01/07 06/01/09-06/01/17 3.40-3.65 1,055,000 955,000
11/04/08 06/01/09-06/01/28 3.75-4.80 3,885,000 3,785,000
11/04/08 06/01/09-06/01/23 3.75-4.25 3,290,000 3,160,000
11/04/08 06/30/09-06/30/18 5.25-5.50 2.465.000 2.365.000
R 4R SR5.000 $ 40.735.000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ending Governmental Activities Business-tune Activities
June 30 Principal Interest Principal Interest
2010 $ 1,755,950 $ 1,151,143 $ 824,050 $ 596,722
2011 1,831,604 1,079,460 858,396 567,452
2012 1,889,468 1,003,239 890,532 536,304
2013 1,948,723 923,289 911,277 503,396
2014 2,213,723 839,876 951,277 468,959
2015-2019 11,751,277 2,623,186 5,143,723 1,756,548
2020-2024 4,689,255 362,713 3,780,745 750,394
2025-2028 - - 1.295.000 139.360
Total 26 ORQ000 $ 7.982.906 $ 14.655.000 $ 5.319.135
Tax Increment Financing Bonds. The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges property tax revenues from the tax increment financing districts
to pay debt service. These bonds are generally issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi-annually. The original amount of tax increment
financing bonds issued in prior years was $27,593,538. Tax increment financing bonds outstanding at
June 30, 2009, are as follows:
(continued on next page) 52
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
Advanced Data-
Comm 03/18/99 12/31/01-06/30/11 6.0°-0 $ 900,000 $ 166,218
Cartegraph Systems 12/01/99 12/31/01-12/31/10 8.8 360,000 63,466
Eagle Window &
Door 02/15/00 12/31/02-06/30/12 9.1 3,168,538 1,260,336
Vessel Systems 12/30/03 12/30/05-06/30/15 8.0 140,000 96,656
Diamond Jo Parking
Ramp 10/16/07 06/01/11-06/01/37 7.5 23.025.000 23.025.000
~ 27.593.538 ~ 24.611.676
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Ending
June 30
('governmental Activities
Principal Interest
2010 $ 531,609 $ 1,853,225
2011 812,174 1, 805,199
2012 778,939 1, 742, 354
2013 346,617 1,686,616
2014 372,973 1, 660, 510
2015-2019 2,234,364 7,849,543
2020-2024 3,185,000 6,881,625
2025-2029 4,565,000 5,496,000
2030-2034 6,555,000 3,506,250
2035-2037 5.230.000 803.250
Total
$ 24,611,676 $ 33,284,572
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, 2009, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Puroose issue Maturity Dates Rates issued F,nd of Year
Parking facilities 03/01/98 05/01/98-OS/O1/10 4.70-4.75°-u $ 2,515,000 $ 250,000
Water utility 11/04/08 06/01/10-06/01/23 3.00-5.00 1.195.000 1.195.000
S 3.710.000 $ 1.445.000
(continued on next page) 53
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JC1NE 30, 2009
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30
Business-tune Activities
Principal Interest
2010
2011
2012
2013
2014
2015-2019
2020-2023
$ 320,000 $ 63,583
70,000 49,608
70,000 47,333
75,000 44,883
75,000 42,070
425,000 160,045
410.000 51.953
$ 1.445.000 $ 459,475_
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, 2009, 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°-0 $ 500,000 $ 272,727
Lower Main
Development 06/30/04 12/31/06-06/30/16 8.00 182,000 140,866
Theisen Supply 11/22/06 12/31/08-06/30/18 8.25 810323 756.091
R 1.492.323 $ 1.169.684
Annual debt service requirements to maturity for notes payable are as follows
Fiscal Year Ending
June 30
Governmental Activities
Principal Interest
2010 $ 119,988 $ 83,187
2011 128,256 75,044
2012 133,792 66,374
2013 141,183 55,284
2014 149,191 45, 425
2015-2019 497.274 84.189
Total $ 1.1(,9.(,84 $ 409
(continued on next page) 54
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JC1NE 30, 2009
Capital Loan Notes. Capital loan notes have been issued for the planning and construction of sewer,
stonnwater, and water capital projects through the State of Iowa State Revolving Loan Funds.
Plannine
Northfork Catfish
Creek Project
Northfork Catfish
Creek Project
Water Pollution
Control Plant
Date
Authorized Maturity Dates
12/28/06 12/01/09-06/01/29
12/18/06 12/01/09-06/01/29
Amount
Interest Amount Outstanding
Rates Authorized End of Year
3.25°'0 $ 1,889,521 $ 615,354
3.25 253,850 236,907
Design 03/11/09 12/01/09-06/01/29 3.25 3,200,000
Clean Water 01/14/09 06/01/09-06/01/29 3.25 2,000,000
Drinking Water 10/18/07 06/01/08-06/01/29 3.25 1.037.000
$ R~~R0.371 $
Annual Debt Service Requirements to maturity for capital loan notes are as follows
Fiscal Year Ending
June 30
711,983
1,520,748
829.084
3,914,076
Business-Tune Activities
Principal Interest
2010 $ 141,615 $ 126,066
2011 146,255 121,426
2012 151,047 116,634
2013 155,996 111,685
2014 161,107 106, 5 74
2015-2019 888,259 450,149
2020-2024 1,043,627 294,781
2025-2029 1.226.170 112.237
Total S 3 914,076 $ 1,439,552
At June 30, 2009, the City of Dubuque had $4,354,294 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 2011.
Loans Payable. Loans payable have been issued to fund several City projects.
Date of Interest
Purnose Issue Maturity Dates Rates
Parking Lot
Purchase 07/08/08 01/01/09-07/01/23 5°'0
Housing Rehab
Project 03/13/09 03/16/10-10/01/17 3
(continued on next page)
Amount Amount
Originally Outstanding
Issued End of Year
$ 400,000 $ 390,889
500.000 150.000
$ 900.000 $ 540,889
55
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year Ending Governmental Activities Business-tune Activities
June 30 Principal Interest Principal Interest
2010 $ 16,667 $ 6,423 $ 18,911 $ 19,311
2011 16,667 4,000 19,869 18,354
2012 16,667 3,500 20,874 17,348
2013 16,667 3,000 21,931 16,291
2014 16,667 2,500 23,041 15,181
2015-2019 66,665 5,000 133,939 57,180
2020-2024 - - 152.324 19.668
Total $ 150.000 $ 24 423 $ 390_RR9 ~ 163 333
Changes in Long-term L iabilities. Long-term liability a ctivity for the year ended June 3 0, 2009, was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance (one Year
Governmental activities:
General obligation
bonds $ 21,860,000 $ 5,755,000 $ (1,535,000) $ 26,080,000 $ 1,755,950
Less:
Unamortized discounts (42,164) (48,516) 11,891 (78,789) -
Deferred amount on
refunding (64.9291 - 5.411 (59.S1R1 -
Total general
obligation bonds 21.752.907 5.706.484 (1.517.6981. 25.941.693 1.755.950
Tai increment financing
bonds 25,136,402 - (524,726) 24,611,676 531,609
Less:
Unamortized discounts (257.2861 - 8.872 1248.4141 -
Total taa increment
financing bonds 24.879.116 - (515.8541. 24.363.262 531.609
Notes payable 1,279,636 - (109,952) 1,169,684 119,988
Loans payable - 150,000 - 150,000 16,667
Compensated absences 2.540.145 2.605.493 (2.551.2581. 2.594.380 2.594.380
$ 50.451.804 ~ 461.977 $ (4.694.7621 $ 54.219.019 5.018.594
Beginning Ending Due Within
Balance Additions Reductions Balance (one Year
Business-Type activities
General obligation
bonds $ 11,570,000 $ 3,885,000 $ (800,000) $ 14,655,000 $ 824,050
Less:
Unamortized discounts (78,593) (36,393) 6,872 (108,114) -
Deferred amount on
refunding 1107.0361, - R_920 l9R.116~ -
Total general
obligation bonds 11.384.371 3.848.607 (784.2081. 14.448.770 824.050
Revenue bonds 490,000 1,195,000 (240,000) 1,445,000 320,000
Unamortized discounts - (10.7551 468 (10.2871 -
Total revenue bonds 490.000 1.184.245 (239.5321, 1.434.713 320.000
(continued on neat page) 56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Beginning
Ralance Additions
Business-Type activities: (continued)
Capital loan notes $ 611,997 $ 3,414,079 $
Loans payable - 400,000
Compensated absences 331.500 384.609
Ending
Reductions Ralance
(112,000) $ 3,914,076 $
(9,110) 390,890
(331.5001, 384.609
Due Within
One Year
141,615
18,911
384.609
$ 12,817,868 $ 9,231,540 $ (1,476,350 $ 20,573,058 $ 1,689,185
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
Dubuque Initiatives and Subsidiaries. At June 30, 2009, Dubuque Initiatives and Subsidiaries had the
following notes payable:
Note payable to Dubuque Bank & Trust (Loan A), with the
following interest rate provisions: fixed interest rate of 5.85°-u
during the "Fixed Interest Rate Period"; during the "Initial
Loan A Variable Interest Rate Period", an interest rate equal
to the greater of the "Loan A Index Rate" plus 2.75°'o and
5.00°-u; during the "Second Loan A Variable Interest Rate
Period", an interest rate equal to the "Loan A Index Rate"
plus 2.75°'0. Monthly interest only payments are due with
final principal and interest due at maturity on June 15, 2029.*
Note payable to Dubuque Bank & Trust (Loan B), with the
following interest rate provisions: fixed interest rate of 5.85°'0
during the "Fixed Interest Rate Period", during the "Variable
Interest Period: an interest rate equal to the "Loan A Index
Rate" plus 2.75°-u. Monthly interest only payments due until
March 2010, principal and interest payments of $54,167 begin
on April 1, 2010. This note matures on June 15, 2019.*
Note payable to Dubuque Bank & Trust (Loan C), interest rate
equal to the greater of Prime Rate plus 0.50°-u or 3.99°-u.
Monthly interest only payments are due with final principal
and interest due at maturity on December 31, 2010.**
Note payable to Dubuque Bank & Trust (Loan D), interest rate
equal to the greater of Prime Rate plus 0.50°-u or 3.99°-u.
Monthly interest only payments are due with final principal
and interest due at maturity on October 31, 2011.*
Note payable to ICD VIII, LLC (QLICI QAl Loan), fixed
interest rate of 4.74°'0. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039.***
$ 5,294,384
6,500,000
9,797,991
10,651,055
5, 897,192
(continued on next page) 57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Note payable to IISBCDE Sub-CDE %%N~, LLC (QLICI
QA2 Loan), fixed interest rate of 4.47°'0. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039.*** $ 5,897,192
Note payable to ICD VIII, LLC (QLICI QB1 Loan), fixed
interest rate of 1.80°-u. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039.*** 3,902,808
Note payable to IISBCDE Sub-CDE %%N~, LLC (QLICI
QB2 Loan), fixed interest rate of 1.80°'0. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039.*** 4.002.808
51,943,430
Less: Current maturities 228.109
Noncurrent liability $ 51.715.321_
The following is a schedule by years of the principal maturities of long-term debt obligations for the years
ending June 30:
2010 $ 228,109
2011 10, 08 8, 801
2012 10,959,341
2013 326,812
2014 346,451
Thereafter 29.993.916
51 9x3.430
* -Notes A, B, and D payable to Dubuque Bank & Trust are collateralized by a security agreement
dated June 22, 2009, a collateral assignment of tax credit purchase agreement dated June 22, 2009, and a
collateral assignrent of fund loan documents dated June 22, 2009.
** - Note C payable to Dubuque Bank & Trust is collateralized by a security agreement dated June 22,
2009, and a collateral assignrent of federal historic tax credit bridge loan documents dated June 22,
2009.
***-These notes payable to various entities are collateralized by, among other things, a certain Open-End
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing of even date
herewith executed by Borrower, as Mortgagor, to Administrative Agent, in its capacity as the
Administrative Agent for the Lenders and for the benefit of the Lenders, as Mortgagee, encumbering the
Property.
(continued on next page) 58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
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 governrnent carries commercial insurance
purchased from independent third parties and participates in a local governrnent risk pool. The City
assumes liability for any deductibles and claims in excess of coverage limitations.
The City has established a Health Insurance Reserve Fund for insuring benefits provided to City
employees and covered dependents which is included in the Internal Service Fund Type. Health benefits
were self-insured up to an individual stop-loss amount of $85,000, and an aggregate stop-loss of
$6,075,095 for 2009. 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 2009. 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.
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 $814,119 in the Health Insurance Reserve
Fund and $622,009 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, 2009 and 2008, are summarized as
follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
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 14.897.9431 1613.2511,
Liabilities at June 30, 2008
Claims and changes in estimates during fiscal year 2009
Claim payments
Liabilities at June 30, 2009
829,027 774,612
5,428,409 867,815
(5.443.3171 (1.020.4181.
$ 814.119 $ 622.009
(continued on next page) 59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
The City is a member in the Iowa Communities Assurance Pool (Pool), as allowed by Chapter 670.7 of
the Code of Iowa. The Pool is a local government risk-sharing pool whose 622 members include various
governrnental 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 equal 200 percent of the total current members' basis
rates or to comply with the requirements of any applicable regulatory authority having jurisdiction over
the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual operating
contributions which are necessary to fund, on a cash basis, the Pool's general and administrative expenses
and reinsurance premiums, all of which are due and payable in the current year, plus all or any portion of
any deficiency in capital. Any year-end operating surplus is transferred to capital. Deficiencies in
operations are offset by transfers from capital and, if insufficient, by the subsequent year's member
contributions. The City has property insurance coverage in addition to the Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City's annual contributions to the Pool for the
year ended June 30, 2009, were $590,712.
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 intergovernrnental 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, 2009, 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.
(continued on next page) 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
NOTE 9 -COMMITMENTS AND CONTINGENT LIABILITIES
Grants
The City has received financial assistance from numerous federal and state agencies in the form of grants
and entitlements. The disbursement of funds received under these programs generally requires
compliance with terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the 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,
2009.
Litigation
The City's corporation counsel reported that as of June 30, 2009, 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.
Environmental Protection Agency
The City of Dubuque has been notified that the United States Department of Justice has approved the
filing of a civil action on behalf of the United States Environrental Protection Agency against the City
seeking civil penalties and injunctive relief for illegal discharges of untreated sewage and into waters of
the United States. The State of Iowa will join the United States in bringing this civil action. The City has
had several meetings with representatives of the Department of Justice, Environrental Protection
Agency, and State of Iowa and is attempting to negotiate a settlement of the complaint. The City has also
undertaken several major projects to remedy the alleged violations.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2009. The City has additional commitments for signed construction contracts
of $12,021,259 as of June 30, 2009. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
Debt Guarantee
The City has guaranteed debt issued by Dubuque Initiatives and Subsidiaries related to the rehabilitation
of the Roshek Building. The guarantee is limited to $25,000,000.
NOTE 10 -OTHER POSTEMPLOFMENT BENEFITS (OPEB)
The City implemented GASB Statement No. 45, Accounting and Financial Reporting fir Ernplrn~ers for
PostemplaymentRenefits other Than Pensions prospectively during the year ended June 30, 2009.
(continued on neat page) 61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
Plan Descrntion - The City operates a single-employer retiree benefit plan which provides
postemployment benefits for eligible participants enrolled in the City-sponsored plans, which includes the
employees of the Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does not
issue astand-alone financial report. The benefits are provided in the form of:
An implicit rate subsidy where pre-65 retirees receive health insurance coverage by paying a combined
retiree/active rate for the self-insured medical and prescription drug plan.
An explicit rate subsidy where the City pays the full cost of a $1,000 policy in the fully-insured life
insurance plan.
To be eligible for the health insurance coverage, retirees must be at least 55 years old, have completed 4
years of service, and be vested with either the Iowa Public Employee's Retirement System (IPERS) or the
Municipal Fire and Police Retirement System of Iowa (MFPRSI). In addition to the health eligibility
coverage requirements, one must have belonged to a bargaining group to be eligible for life insurance
benefits. There are 482 active and 28 retired members in the plan.
Fundine Policy -The contribution requirements of plan members are established and may be amended by
the City. The City currently finances the retiree benefit plan on apay-as-you-go basis.
Annual OPEB Cost and Net OPEB Oblieation -The City's annual OPEB cost is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not
to exceed 30 years.
The following table shows the components of the City's annual OPEB cost for the year ended June 30,
2009, the amount actually contributed to the plan, and changes in the City's net (~PEB obligation:
Annual required contribution $ 945,000
Interest on net (~PEB obligation -
Adjustment to annual required contribution -
Annual (~PEB cost 945,000
Contributions made (24.8431
Increase in net (~PEB obligation 920,157
Net (~PEB obligation, beginning ofyear -
Net (~PEB obligation, end ofyear $ 920.157
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end
of year net OPEB obligation was calculated by the actuary as the cumulative difference between the
actuarially determined funding requirements and the actual contributions for the year ended June 30,
2009.
For the year ended June 30, 2009, the City paid $233,080 for retiree claims. Plan members eligible for
benefits contributed $208,237 or 100°'0 of the premium costs. The net resulted in City contributions of
$24,843.
(continued on next page) 62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
The City's annual (~PEB cost, the percentage of annual (~PEB cost contributed to the plan and the net
(~PEB obligation as of June 30, 2009 are summarized as follows:
Percentage of Net
Annual Annual (~PEB (~PEB
Year Ended OPEB Cost Cost Contribution Oblieation
June 30, 2009 $ 945,000 2.6°'0 $ 920,157
Funded Status and Fundine Proeress - As of July 1, 2008, the most recent actuarial valuation date for the
period July 1, 2008 through June 30, 2009, the actuarial accrued liability was $9,117,000, with no
actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $9,117,000. The
covered payroll (annual payroll of active employees covered by the plan) was approximately $30,012,086
and the ratio of the UAAL to covered payroll was 30.4°-u. As of June 30, 2009, there were no trust fund
assets.
Actuarial Methods and Assumntions -Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumption about future employment, mortality, and the health care cost trend.
Actuarially determined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented
as required supplementary information in the section following the Notes to Financial Statements, will
present multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the plan as understood by the
employer and the plan members and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that point.
The actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
As of the July 1, 2008 actuarial valuation date, the unit credit actuarial cost method was used. The
actuarial assumptions includes a 5°'o discount rate based on the City's funding policy. The projected
annual medical trend rate is 11°-u. The ultimate medical trend rate is 6°-u. The medical trend rate is
reduced 0.5°'o each year until reaching the 6°'o ultimate trend rate.
Mortality rates are from the RP2000 Group Annuity Mortality Table, applied on agender-specific basis.
Annual retirement and termination probabilities were developed from the retirement probabilities from
the IPERS and MFPRSI Actuarial Reports as of June 30, 2007 and applying the termination factors used
in the IPERS and MFPRSI Actuarial Reports as of June 30, 2007.
Projected claim costs of the medical plan are $8,490 per year for retirees at age 60. The salary increase
rate was assumed to be 4°-u per year. The UAAL is being amortized as a level percentage of projected
payroll expense on an open basis over 30 years.
(continued on neat page) 63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
NOTE 11-EMPLOYEE RETII2EMENT SYSTEMS
MFPRSI
The City contributes to the Municipal Fire and Police Retirement System of Iowa (Plan), which is a cost-
sharing, multiple-employer defined benefit pension plan administered by a Board of Trustees. The Plan
provides retirement, disability, and death benefits which are established by state statute to plan members
and beneficiaries. The Plan issues a publicly available financial report that includes financial statements
and required supplementary information. The report may be obtained by writing to Municipal Fire and
Police Retirement System of Iowa, 7155 Lake Drive, Suite 201, West Des Moines, Iowa, 50266.
Plan members are required to contribute 9.35°-u of earnable compensation and the City is required to
contribute 18.75°'0 of earnable compensation Contribution requirements are established by state statute.
The City's contributions to the Plan for the years ended June 30, 2009, 2008, and 2007, were $2,077,554,
$2,632,282, and $2,730,207, 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.(7. Box 9117, Des
Moines, Iowa, 50306-9117.
Plan members are required to contribute 4.10°-u of their annual covered salary, and the City is required to
contribute 6.35°'0 of annual covered payroll. Contribution requirements are established by state statute.
The City's contributions to IPERS for the years ended June 30, 2009, 2008, and 2007, were $1,314,106,
$1,200,182, and $1,071,260, respectively, equal to the required contributions for each year.
NOTE 12 -LANDFILL CLOSIIRE AND POSTCLOSIIRE 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
$3,574,082 reported as landfill closure and postclosure care liability at June 30, 2009, represents the
cumulative amount reported to date based on the use of 100°-u of the estimated capacity of cells 1, 2, 3,
and 4, the use of 90°'0 of the estimated capacity of cells 5 and 6, and the use of 55°'0 of the estimated
capacity of cells 7 and 8. The Agency will recognize the remaining estimated cost of closure and
postclosure care of $678,358 as the remaining capacity is filled.
(continued on next page) 64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JCtNE 30, 2009
These amounts are based on what it would cost to perform all closure and postclosure care in 2009. The
Agency expects to close cells 4, 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 2058. 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, 2009, funds have been restricted for closure and postclosure
costs in the amount of $3,530,472.
NOTE 13 -LEASES WHERE CITF 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, 2009 is $7,438,738, 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, 2009, the DRA lease generated
$8,175,147 in lease revenue.
NOTE 14 -SUBSEQUENT EVENTS
On October 5, 2009, the City authorized $2,935,000 General Obligation Bonds Taxable Series 2009A
(Qualified Build America Bonds Direct Pay) to support cost of the acquisition of sewer pipeline
inspection equipment; the inspection and certification of the flood control levee system; the construction
and installation of stormwater management facilities, including the Bee Branch Creek Restoration Project,
and the reconstruction of storm sewers; the acquisition and replacement of street lights; the acquisition
and installation of fiber optic conduit in connection with street improvements and water main extensions;
the repair and improvement of the Dubuque Regional Airport, including hanger heater and terminal boiler
replacements, runway and hanger painting, hanger repairs and replacements and parking area paving; the
acquisition and replacement of Fire Department ladder and pumper trucks and ambulances; and water
utility improvements including the construction and installation of water main extensions, ADA
improvements, back-up power supply and water consumption studies and engineering. The interest rate
on the bonds range from 1.9°'o to 5.6°'0, with a maturity date of June 1, 2029. The City is eligible to
receive a federal subsidy through a refundable tax credit paid to the City by the Treasury Department and
the Internal Revenue Service in an amount equal to 35°'0 of the total coupon interest. The funds to repay
the bonds will be generated from fees, taxes, and debt service levy.
On October 5, 2009, the City authorized $11,175,000 General Obligation Urban Renewal Bonds Taxable
Series 2009B (Qualified Build America Bonds Direct Pay) to provide funds to pay costs to construct a
multi-story parking ramp and the construction of street, sewer, sidewalk, trail, and other public
infrastructure improvements within Dubuque Industrial Center West. The interest rate on the bonds range
from 1.5°'o to 5.5°'0, with a maturity date of June 1, 2029. The City is eligible to receive a federal subsidy
through a refundable tax credit paid to the City by the Treasury Department and the Internal Revenue
Service in an amount equal to 35°-u of the total coupon interest. The funds to repay the bonds will be
generated from parking revenue and with tax increment revenues of the Greater Dubuque Downtown
Urban Renewal District and Dubuque Industrial Center West District.
(continued on next page) 65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2009
On October 5, 2009, the City authorized $8,885,000 General Obligation Refunding Bonds Series 20090.
The interest rate on the bonds range from 2.0°'o to 4.0°'0, with a maturity date of June 1, 2021. Bonds are
issued to provide funds to current refund, $7,325,000 of outstanding General Obligation Bonds, Series
2001 and $2,080,000 of outstanding General Obligation Bonds Series 2002.
The City will be borrowing up to $6 million in General Obligation Urban Renewal Bonds to pay costs
associated with planning, undertaking, and carrying out of urban renewal project activities including those
costs associated with the construction of street, stormwater, sanitary sewer, water, fiber optic, parking and
other public improvements in the Historic Millwork District and funding of grants, loans, and other
financial assistance to private developers to assist in rehabilitation of existing buildings and construction
of housing development projects in the Millwork District. The funds to repay the bonds will be from the
tax increment revenues generated within the Greater Downtown Urban Renewal District.
The City has drawn $1,169,922 through November 2009, against the existing State Revolving Fund
(SRF) loans for Planning and Design, and Construction for water, stormwater, and sewer projects.
The City plans to borrow up to $8 million as a construction loan from the Drinking Water State
Revolving Fund (SRF) through the Iowa Finance Authority and receive an additional $1 million
forgivable SRF loan under the American Recovery and Reinvestment Act (ARRA) to fund the City wide
Water Meter Change Out Project. Construction loans provide a 3°'o interest rate, with .25°'o annual service
fee, and a 1°-u origination fee.
The City plans to use the Clean Water State Revolving Fund (SRF) through the Iowa Finance Authority
for significant upgrades to the Water Pollution Control Plant. The loans include construction and planning
and design with Intended Use Plan (IUP) for approximately $65 million filed. Construction loans provide
a 3°-u interest rate, with .25°-u annual service fee, and a 1°-u origination fee. Planning and Design Loans
have no interest for three years, no initiation fees, and no servicing fees.
NOTE 15 -NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
STANDARDS
The Governrnental Accounting Standards Board (GASB) has issued three statements not yet implemented
by the City of Dubuque. The statements, which might impact the City of Dubuque, are as follows:
Statement No. 51, .4ccortinting ana' 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. 53,.4ccounting arad Financial Reporting for Derivative bastrurnerats, 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 governrnents.
Statement No. 54, Frtina' Balance Reporting ana' Grn~ernmental Frtina' Type Definitions, issued February
2009, will be effective for the fiscal year ending June 30, 2011. This statement establishes new standards
for fund balance classifications based primarily on the extent to which a government is bound to observe
constraints imposed upon the use of the resources reported in governrnental funds.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
66
CITY OF DUBUQUE, IOWA
SCHEDIILE OF RECEIPTS, EYPENDITIIRES, AND CHANGES IN BALANCES -
BIIDGET AND ACTIIAL (BIIDGETARY BASIS)
GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JCTNE 30, 2009
Final to
Budgeted Am ounts Actual
Actual Original Final Variance
REUEIPTS
Property tax $ 17,37ti,558 $ 17,959,420 $ 17,959,420 $ 1582,8ti21
Tax incrementfinancing 4,94? 358 4,9ti3,583 4,9ti3,583 (21,2251
Other City tax 11,18a,a70 13,81a,1a9 13,81 a,1a9 (2,ti29,ti791
Licenses and permit, 3,273,94x 1,340,90x 1,34Q,90x 1,933,0x0
Use of money and property 1 x,x12,871 12,985,806 12,99x,756 1,x18,115
Intergovernmental 16,893,x00 19,888,363 x1,310,226 (2x,x16,8261
Clwrges for fees end service 20,015, 74ti 25,ti 13,824 25,ti22,181 IS,ti0ti,4351
Special assessments 141,8ti0 325,000 1,4ti3,510 11 321,ti501
Miscellaneous 12,aaa,072 S,ti 18,8x2 9,a05,ti 18 3,038,a5a
Total Receipts 100,ti85,279 102,509,891 128,874,347 (28,189,Oti81
ENPENDITURES
Public safety 20,8ti5, 7ti0 21;L03,43ti 21,487,882 ti22,122
Public works 11,405,2ti5 10,8ti1,5ti7 11,913985 508,720
Health and social services 870,728 819,572 9309ati ti0,218
(:allure and recreation 8,x83,260 8,562,808 8,64Q,948 157,688
Community and economic development 1Q,071,2xx 9,3x0,356 1Q, 121,14x x9,900
General government 5,673,727 5,876,609 6,468,25x 79x,527
Debt service 5,2ti9,125 S~titi,ti5ti 5,499,589 230,4ti4
Capital projects 38,575,015 a0,01~ 989 80,211,712 al,ti3ti,ti97
Business-type acriviries 27,ltia,ti35 a0 932,18a Sti,7ti8 50ti 29,ti03,871
Total Expenditures 128,378,759 1x2,883,177 202,Oa29titi 73,titia,207
ENUESS (DEFIUIENCY 1 OF REUEIPTS
OVER (UNDERIEkPENDITURES (27,693,480) 140373 ~8ti1 (73,168,619) 45,475,139
OTHER FINANCING SOURCES, NET 15,259,901 25,71 a,1a7 33,999,x10 (18,739,509)
ENUESS (DEFIUIENCY 1 OF REUEIPTS AND
OTHER FINANCING SUURUES OVER
(UNDERI E4PENDITURES AND
OTHER FINANCING USES (12,433,579) 114,ti59,1391 (39,169 ~09) 26,735,630
BALANCE, BEGINNING ti4,954,283 ti4,954,283 ti4,954,283 -
BALANCE, ENDING $ 52,52 Q, 70x $ SQ,295,1xx $ 25,785,07x $ 26,735,630
67
CITY OF DUBUQUE, IOWA
NOTES TO REQIIIRED SIIPPLEMENTARY INFORMATION - BIIDGETARY REPORTING
FOR THE YEAR ENDED JCTNE 30, 2009
The budgetary comparison is presented as Required Supplementary Information in accordance with
Governmental Accounting Standards Board Statement No. 41 for governments with significant budgetary
perspective differences resulting from not being able to present budgetary comparisons for the General
Fund and each major Special Revenue Fund.
The Code of Iowa requires the adoption of an annual budget by the City Council on or before March 15 of
each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control (the level on which expenditures may not legally exceed
appropriations) is the function level for the City as a whole, rather than at the fund or fund type level. The
internal service fund or agency fund activity is not included in the adopted budget.
The City's budget is prepared on the cash basis of accounting with an adjustment for accrued payroll
following required public notice and hearings. After the initial annual budget is adopted, it may be
amended for specified purposes. Budget amendments must be prepared and adopted in the same manner
as the original budget. Management is not authorized to amend the budget or to make budgetary transfers
between functions without the approval of the City Council. Management may make budgeting transfers
between funds as long as the transfers are within the same function. The City has adopted a policy relative
to budgetary control and amendment which provides for control at the line-item level and review of the
current year's budget at the time the next year's budget is prepared. This usually results in amending the
appropriations of all functions to adjust to current conditions. Supplemental appropriations are only
provided when unanticipated revenues or budget surpluses become available. Appropriations as adopted
lapse at the end of the fiscal year.
The budget for the fiscal year ended June 30, ?009, was amended two times during the year to allow the
City to increase function expenditures by $59,159,789, 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
Accrual/ Fund, Fund,
Budgetary Accrual Accrual Modified
Rasis Adiustmenh Rasis Accrnal Rasis Accrnal Rasis Tntal
Receipts/revenues $ 100,ti85,279 $ 15,381 3941 $ 95,303,885 $ 74,ti2? 9ti5 $ 20,ti80,920 $ 95,303,885
Expenditures/expenses 128378.759 (10221.O1ti1 118.157943 95.9ti9204 22.188539 118.157943
Deficiency of receipts/
revenue, under
eayenditure,/eayen5e, (27,693,480) 4,839,622 (22,853,858) (21,346,239) 11,507,619) (22,853,858)
Other financing sources,
net 15259.901 17.657964 32917.665 4_R17.364 2R_100.301 _ 32.917.665
Net (12,433,579) 22,49?38ti 10,063,807 (1ti,528,8751 26,592,682 10,063,807
Balance, beginning 64.9542R3 l OR927_R19 173RR2102 66.910.216 106.971 RR6 _ 173RR2102
Balance, ending R 57 x.704 R 1 1 R 1 R3 945 909 $ 5n 'iR 1 3~ R~ 5ti4,5~ R 1 R3 945 909
68
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETII2EE BENEFIT PLAN
FOR THE YEAR ENDED JCTNE 30, 2009
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Actuarial Value of Liability AAL Funded Covered of Covered
Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
Date lal (bl (b-al la/bl lcl (b-a/cl
07/01/08 $ - $ 9,117,000 $ 9,117,000 0.0°-0 $ 30,012,086 30.4°-0
69
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 IIse 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 FIINDS
JIINE 30, 2009
ASSETS
dash 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 FCTND BALANCES
LIABILITIES
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
Use Tax Housing
$ 1,94u,u37 $ 747,633 $
973
390,817
1,951 i
l,su7
36,631
17,966
$ 2,33u,R54 $ Rn9,16n $
Tort
Liability
',349
416,013
41 8,362
$ 149,47n $ 24,452 $ -
72,R26 18,427 -
- ls,suu -
- - 416,013
- - 732
222,296 61,679 416,746
347,608 21,UU7 -
- 1,111 -
1,76u,95n 725,363 1,617
2,1nR,55R 747,481 1,617
$ 2,330,854 $ 809,160 $ 418,362
EIHIBIT A-1
Special Revenue
Tax
Special Increment
Assessments Financing
Library
Expendable Debt
Cable T V Uifts Trust Service
$ 3,565 $ 1,312,179 $ 964,334 $ 113,151 $ 3,155
78,142
- - 15,884 3u,999 -
633,997 - - - -
608 51,812 1,664 586 -
- 3,6n2,755 1,332 - -
$ 63R,17n $ 4,966,746 $ 983,214 $ 144,736 $ 81,297
$ - $ 11,422 $ 2,915 $ 138 $ -
- - lu,szs - -
- - - - 78,142
459,95n - 61u,2n1 3u,999 -
459,95n 11,422 623,941 31,137 78,142
- 38,625 3,413 R4 -
- 3,6n2,755 - - -
- - - - 3,155
- - 1,332 - -
17R,22n 1,313,944 354,528 113,515 -
178,220 4,955,324 359,273 113,599 3,155
$ 638,170 $ 4,966,746 $ 983,214 $ 144,736 $ 81,297
(continued)
70
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FIINDS
JIINE 30, 2009
Capital Projects
Airport Sales Tax
Construction Construction
ASSETS
Cash and pooled cash investments $ 721,142 $ 1,7RU,561
Receivables
Property tax
Delinquent - -
Succeedingyear - -
Accounts and other - -
Special assessments - -
Accruedinterest 2,241 R,n72
Notes - -
Intergovemmental 3,580 266,174
Restricted cash and pooled cash investments - -
Total Assets $ 726,963 $ 2,U54,Rn7
LIABILITIES AND FCTND BALANCES
LIABILITIES
Accounts payable $ SU,256 $ 135,482
Accrued payroll - -
Intergovemmental payable - -
Deferredrevenue
Succeeding year property tax - -
Other 3,580 -
Tota1Liabilities 53,R36 135,482
FiiND BALANCES
Reserved for/by
Encumbrances 83,779 482,100
Long-term notes receivable - -
Bond ordinance - -
Debt service - -
Franchise agreement - -
Endowments - -
iTnreserved, undesignated reported in
Special revenue funds - -
Capital projects funcLs 589,34R 1,437,225
Permanent funds - -
Total Fund Balances 673,127 1,919,325
Total Liabilities and Fund Balances $ 726,963 $ ? 054,807
EIHIBIT A-1
(continued)
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Uifts Uovemmental
Trust Trust Funds
- ~ - ~ 7sss,757
- - ',3a9
- - 494,1ss
- - 47,856
- - 633,997
113 84 67,13U
- - l,su7
- - 699,4uz
84,960 19,857 3,726,R7n
RS,n73 $ 19,941 $ 13,?59,323
$ 5? $ 374,1 s7
- lu? u7s
- lsauu
- - 494,1ss
- - 1,1u5,46?
- sz ~,n94,682
- - 976,616
- - 1,111
- - 3,6n2,755
- - 3,155
- - 1,33?
57,41? 1?,000 69,41?
- - 4,448,137
- - ~,n26,573
?7,661 7,889 35,SSn
85.ii73 19.889 11.164.641
85,073 $ 19,941 $ 13,59,323
71
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENIIES, EYPENDITIIRES, AND CHANGES IN FIIND
BALANCES
NONMAJOR GOVERNMENTAL FIINDS
FOR THE FEAR ENDED JIINE 30, 2009
REVENUES
Taxes
Special assessments
Intergovernmental
Charges for services
Investment earnings
Contributions
Miscellaneous
Total Revenues
EYPENDITURES
Governmental activities
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
EYCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EYPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
Road Section VIII
Use Tax HOUS1nQ
$ - $ -
4,7R3,76R 4,142,u53
_ ~5,6Rn
34,935 35,~7U
4,818,7U3 4,~U3,UU3
- 82,6U2
5,493,741 -
- 4,Sn1,435
1? uss -
S,SU5,826 4,584,U37
(6R7,123) (3R1,u34)
61R,?55 -
(253,154) -
365,1n1 -
(322,U22) (381,U34)
?,43u,5Rn 1,1?R,515
FUND BALANCES, ENDING $ ?,1nR,55R $ 747,4R1
EIHIBIT A-2
Special Revenue
Tax
Tort Special Increment
Liability Assessments Financing
$ 161,934 $ - $ 4,942,360 $
- ZSU,372
- 36,085 353,025
- 6.x36 -
161,934 293,293 5,295,3R5
Library
Expendable Debt
Cable T V Gifts Trust Service
- $ - $
21,717 4,540
- 125,ss1
66o,6ss -
6R2,372 13u,421
- - - 72,943 - -
- - - 27,576 - -
- - - - 104,557 -
- - 1,158,056 - - -
- - - 624,014 - -
- - 4,139,R7n - - 1,n74,914
_ _ 5,297,926 724,533 1n4,557 1,n74,914
161,934 293,293 (2,541) (42,161) 25,864 (L074,914)
- - 36u,u37 - - 1,n74,914
(1R3,137) Q4R,696) (1,7n7,334) - (2R,nR2) -
(183,1371 (148,6961 (1,347,297) - (28,082) L074,914
(Z1,ZU3) 144,597 (1,349,R3R) (42,161) (2,Z1R) -
22,R2n 33,623 6,3u5,162 4n1,434 115,R17 3,155
$ 1,617 $ 178,220 $ 4,955,324 $ 359,273 $ 113,599 $ 3,155
(continued)
72
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENIIES, EYPENDITIIRES, AND CHANGES IN FIIND
BALANCES
NONMAJOR GOVERNMENTAL FIINDS
FOR THE FEAR ENDED JIINE 30, 2009
Capital Projects
REVENUES
Taxes
Special assessments
Intergovernmental
Charges for services
Investment earnings
Contributions
Miscellaneous
Total Revenues
EYPENDITURES
Governmental activities
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
EYCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EYPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
Airport Sales Tax
Construction Construction
$ - $ 1,529,971
1,124,43n -
17o,37n -
19,3u3 65,268
1,314,1 U3 1,595, 239
1,437,U11 2,181,761
1,437,U11 2,181,761
(122,9nR) (586,522)
2nu,624 524,122
- (Sn9,781)
2nu,624 14,341
77,716 (572,181)
595,411 2,491,Sn6
FUND BALANCES, ENDING $ 673,127 $ 1,919,325
EIHIBIT A-2
(continued)
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
- $ - $ 6,634,265
- - 25u,372
- - lu,u5u,251
- - 17o,37n
(14,296) 726 512,048
- - 125.ss1
- - 737,696
(14,296) 726 1R,48u,RR3
- - lsss4s
- - x,493,741
- - z7s76
9u1 zss6 1us,u44
- - 5,659,491
- - 636,099
_ _ 5,214,784
- - 3,61R,772
9n1 2,586 2u,914,u52
(15,197) (1,860) 0,433,169)
- - x,777,952
- - O,R3u,184)
- - (52,232)
(15,197) (1,R6n) O,485,4n1)
lnu,27n 21,749 13,65u,n42
$ 85JJ73 $ 19,889 $ 11,164,641
73
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, 2009
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernrnental
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 Current Liabilities
NONCURRENT LIABILITIES
Net OPEB liability
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets
EIHIBIT B-1
Total Other
Refuse Transit Enterprise
CAllection System Funds
$ 868.830 $ - $ 868.830
329,546 13,182 342,728
3,930 - 3,930
- 925,294 925,294
- 23,554 23,554
1,202,306 962,030 2,164,336
- 36,000 36,000
- 1,887,564 1,887,564
1.676.568 3.606.348 5.282.916
(1,490,555) (3,587,788) (5,078,343)
186,013 1,942,124 2,128,137
1,388,319 2,904,154 4,292,473
6,380 48,133 54,513
49,983 49,124 99,107
136,037 6,658 142,695
- 172.453 172.453
192.400 276.368 468.768
42,092 12,026 54,118
234.492 288.394 522.886
186,013 1,942,124 2,128,137
967,814 673,636 1,641,450
$ 1,153,827 $ 2,615,760 $ 3,769,587
74
CITY OF DUBUQUE, IDWA EIHIBIT B-2
COMBINING STATEMENT OF REVENIIES, EYPENSES, AND CHANGES
IN FIIND NET ASSETS
NONMAJOR ENTERPRISE FIINDS
FOR THE FEAR ENDED JIINE 30, 2009
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)
NONOPERATEJG REVENUES
Intergovernmental
Investment earnings
Gain on disposal of assets
NetNonoperating Revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS IN
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING
NET ASSETS, ENDING
Total Other
Refuse Transit Enterprise
Collection System Funds
$ 2,871,395 $ 182,495 $ 3,053,890
1,254 13,765 15,019
2,872,649 196,260 3,068,909
1,76u,984 1,212,197 2,973,181
15,452 58,894 74,346
312,707 421,415 734,122
577,093 570,460 1,147,553
27,926 46,991 74,917
94,SU3 315,1RR 4n9,691
2,7RR,665 2,625,145 5,413,R1n
83,984 0,428,885) (2,344,901
- 1,n95,946 1,n95,946
~s,277 - ~s,277
50 - 50
28,327 L095,946 1,124,273
112,311 (1,332,939) (1,22u,62R)
- 1,253,638 1,253,638
112,311 (79,3n1) 33,n1n
1,n41,516 2,695,n61 3,736,577
$ 1,153,827 $ 2,615,760 $ 3,769,587
75
CITY OF DUBUQUE, IDWA EIHIBIT B-3
COMBINING STATEMENT OF CASH FLOW S
NONMAJOR ENTERPRISE FIINDS
FOR THE FEAR ENDED JIINE 30, 2009
Total Other
Refuse Transit Enterprise
Collection System Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,838,872 $ 175,747 $ 3,014,619
Cash paymenU to suppliers for goods and services (964,620) (1,069,415) (2,034,035)
Cash paymenU to employees for services (1,659,290) (1,212,312) (2,871,602)
Other operating receipts 1,254 13,765 15,019
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 216,216 (2,092,215) (1,875,999)
CASH FLOWS FROMNONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - 1,253,638 1,253,638
Payment of interfund balances - (308,259) (308,259)
Intergovemmentalgrantproceeds - 1,146,836 1,146,836
NET CASH PROVIDED BY NONCAPITAL
FINANCING ACTIVITIES - 2,092,215 2,092,215
CASH FLOW S FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 50 - 50
Acquisition and construction of capital assets (121,223) - (121,223 )
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES (121,173) - (121,173 )
CASH FLOWS FROMINVESTING ACTIVITIES
Interest received 28,634 - 28,634
NET INCREASE IN CASH AND CASH EQLVALENTS 123,677 - 123,677
CASH AND CASH EQUVALENTS, BEGINNING 745,153 - 745,153
CASH AND CASH EQUIVALENTS, ENDING $ 868,830 $ - $ 868,830
(continued)
76
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOW S
NONMAJOR ENTERPRISE FIINDS
FOR THE FEAR ENDED JIINE 30, 2009
EIHIBIT B-3
(continued)
Total Other
Refuse Transit Enterprise
Collection System Funds
RECONCILIATION OF OPERATEQU INCOME (LOSS)
TO NET CASH PROVIDED BF (USED FOR) OPERATEQU
ACTIVITIES
Operating income (loss) $ 83,984 $ (2,428,885) $ (2,344,901)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
Increase in receivables
Increase in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Increase in net OPEB liability
Total Adjustments
NET CASH PROVIDED BF (USED FOR) OPERATINU
ACTIVITIES
94.503 315.188 409.691
(32,523) (6,748) (39,271)
- (6.179) (6.179)
(31,442) 34,524 3,082
59,602 (12,141) 47,461
42.092 12.026 54.118
132.232 336.670 468.902
$ 216,216 $ (2,092,215) $ (1,875,999)
77
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 governrnent and to other governrnent units on a cost-
reimbursement basis.
General Service Fund -This fund is used to account for engineering, street, and general services
supplied to other departments.
Garage Service Fund -This fund is used to account for maintenance and repair services for the
City's automotive equipment.
Stores/Printing Fund -This fund is used to account for printing, supplies, and other services
provided to other departments.
Health Insurance Reserve Fund -This fund is used to account for health insurance costs.
Workers' Compensation Reserve Fund -This fund is used to account for workers' compensation
costs.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2009
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
Due to other funds
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets (Deficit)
General Garage Stores/
Service Service Printing
$ - $ 334,988 $
- 43.361 1.904
- 378,349 1,904
- 102.034 -
- (57.620) -
- aa,ala -
- 422,763 1,904
- 55,315 5,305
17.758 25.603 -
316 - 1.655
18.074 80.918 6.960
- 44.414 -
(18,074) 297,431 (5,056)
$ (18,074) $ 341,845 $ (5,056)
EIHIBIT G1
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 3,545,902 $ 201,765 $ 4,082,655
164.380 - 164.380
14.809 1.014 15.823
- - 45.265
3.725.091 202.779 4.308.123
- - 102,034
- - (57,620)
- - aa,ala
3,725,091 202,779 4,352,537
814,119 622,009 1,496,748
- - 43.361
- - 1.971
814,119 622,009 1,542,080
- - 44.414
2,910,972 (419,230) 2,766,043
$ 2,910,972 $ (419,230) $ 2,810,457
78
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS (DEFICIT)
INTERNAL SERVICE FUNDS
FOR THE FEAR ENDED JCTNE 30, 2009
OPERATING REVENUES
Charges for sales and services
(hher
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
CHANGE IN NET ASSETS
NET ASSETS (DEFICIT), BEGEVNING
General Garage Stores/
Service Service Printing
$ 1,365,401 $ 1,824,707 $ 103,600
1.365.401 1.824.707 103.600
1,352,986 702,996 -
- 24.042 -
- 21.371 -
6.159 920.186 119.342
11,925 13,202 -
- 7,706 -
1,371,070 1,689,503 119,342
(5,669) 135,204 (15,742)
- 2,295
- 2,295
(5,669) 137,499 (15,742)
(12,405) 204,346 10,686
NET ASSETS (DEFICIT), ENDING $ (18,074) $ 341,845 $ (5,056)
EIHIBIT G2
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 5.246.860 $ 584.875 $ 9.125.443
282.753 24.516 307.269
5.529.613 609.391 9.432.712
- - 2,055,982
- - 24,042
- - 21,371
5,578,069 900,384 7,524,140
508,753 25,139 559,019
- - 7,706
6,086,822 925,523 10,192,260
(557,209) (316,132) (759,548)
133.439 16.044 149.483
- - 2,295
133.439 16.044 151.778
(423,770) (300,088) (607,770)
3,334,742 (119,142) 3,418,227
$ 2.910.972 $ (419.230) $ 2.810.457
79
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOW S
INTERNAL SERVICE FIINDS
FOR THE FEAR ENDED JCTNE 30, 2009
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
CASH FLOWS FROMNONCAPITAL FINANCING
ACTIVITIES
Proceeds from interfund balances
CASH FLOW S FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets
CASH FLOWS FROMINVESTING ACTIVITIES
Interest received
NET EJCREASE (DECREASE) EJ CASH AND
CASH EQLIIVALENTS
CASH AND CASH EQiIIVALENTS, BEGINNING
CASH AND CASH EQiIIVALENTS, ENDING
General Garage
Service Service
$ 1,365,4n1 $ 1,R24,7n7 $
Q8,084) (975,358)
(1,354,365) (700,810)
(7,i i4R1 14R,539
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss) $
Adjustments to reconcile operating income Qoss) to net
cash provided by (used for) operating activities
Depreciation
Change in assets and liabilities
Increase in receivables
Decrease in inventories
Increase (decrease) in accounts payable
Increase (decrease) in accrued liabilities
Total Adjustments
316 -
2,295
(6,732) 15u,R34
6, 732 184,154
- $ 334,988 $
(5,6691 $ 135,204 $
- 7,706
- 11,R56
- (R,413)
(1,3791 ~,1R6
(1,379) 13,335
Stores/
Printing
1u3,6nn
(113,615)
(lu,n15)
1,655
(R,36i i)
8,360
(15,742)
517
5,2111
5,727
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ (7,n4R) $ 14R,539 $ (lu,n15)
EIHIBIT G3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 5,203,172 $ SR4,R75 $ 9,OR1,755
(6,101,730) Q,078,126) (8,286,913)
- - (2,055,175)
282,753 24,516 307,269
(615,RU5) (46R,735) (953,064)
140,458 18,747
(475,347)
4,i 121,249
$ 3,545,902 $
1,971
2,295
159,205
(449,988) (789,593)
651,753 4,872,248
201,765 $ 4,082,655
$ (557,209) $ (316,132) $ (759,548)
- - 7,706
(43,688) - (43,688)
- - 12,373
Q4,9nR) (152,603) (170,714)
- - 807
(58,596) (152,603) (193,516)
$ (615,RU5) $ (468,735) $ (953,064)
80
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 FIINDS
FOR THE YEAR ENDED JCTNE 30, 2009
CABLE EQIIIPMENT FIIND
ASSETS
Cash and pooled cash investments
Accounts receivable
Accrued interest
Total Assets
LIABILITIES
Due to other agency
Balance
Beginning
of Year Additions Deductions
EIHIBIT D-1
Balance
End
of Year
$ 314,385 $ 244,918 $ 226,430 $ 332,873
7,235 5,559 7,235 5,559
- 5,530 5,530 -
$ 321,620 $ 256,007 $ 239,195 $ 338,432
$ 321,620 $ 256,007 $ 239,195 $ 338,432
DOG TRACK DEPRECIATION FIIND
ASSETS
Cash and pooled cash investments $ 645.545 $ 145.372 $ - $ 790.917
Accrued interest 3.445 25.165 25.372 3.238
Total Assets $ 648.990 $ 170.537 $ 25.372 $ 794.155
LIABILITIES
Due to other agency $ 648,990 $ 170,537 $ 25,372 $ 794,155
TOTAL AGENCY FIINDS
ASSETS
Cash and pooled cash investments $ 959,930 $ 390,290 $ 226,430 $ 1,123,790
Accounts receivable 7.235 5.559 7.235 5.559
Accrued interest 3,445 30,695 30,902 3,238
Total Assets $ 970.610 $ 426.544 $ 264.567 $ 1.132.587
LIABILITIES
Due to other agency $ 970,610 $ 426,544 $ 264,567 $ 1,132,587
81
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 Paee
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. 83
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax. 88
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. 92
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environrnent within which the City's financial activities take place
and to help make comparisons over time and with other governrnents. 100
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 perforns. 102
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 governrnent-wide information include information beginning in that year.
82
CITY OF DUBUQUE, IOWA
NET ASSETS BY COMPONENT
LAST SEVEN FISCAL YEARS
(ACCRIIAL BASIS OF ACCOIINTING)
Fiscal Year
2nu3 2nn4 2nu5 2nn6
Uovemmental activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total governmental activities net assets
Business-type activities
Invested in capital assets, net of related debt
Restricted
Unrestricted
Total business-type activities net assets
Primary government
Invested in capital assets, net of related debt
Restricted
Unrestricted
$ 212,767,403 $ 231,863,231 $ 249,881,646 $ 267,762,059
29,306,124 31,931,803 24,180,874 21,693,357
11,528,644 11,322,661 11,236,R7n 15,132,486
$ 253,6n2,171 $ 275,117,695 $ 285,299,39n $ 3n4,587,9n2
$ 9R,7n6,116 $ 92,3n1,n43 $ 93,u36,nR9 $ RR,Rn2,536
553,677 554,nu5 554,2u5 554,294
6,3nR,Rn1 lu,5n2,939 12,R54,73n 13,25R,n72
$ 105,568,594 $ 103,357,987 $ 106,445,024 $ 102,614,902
$ 311,473,519 $ 324,164,274 $ 342,917,735 $ 356,564,595
29,R59,Rn1 32,485,RnR 24,735,n79 ~~,247,651
17,837,445 21,R25,6nn 24,n91,6nn 2R,39u,55R
Total primary government net assets $ 359,170,765 $ 378,475,682 $ 391,744,414 $ 407,202,804
£8
ZZ£~OI£~bSb $ Z06~£USbSb $ bZ9~£50~3£b $
OlblJbO~L Lb9lJ0£lJ£ ILb~9£I~££
U3%~Ib6~L% 6%%~S%S~%£ 9b9~bSb~b%
Z£9`8Z£`6Ib $ 9Zn`8bZ`I6£ $ UK`Z9b`n8£ $
395~b95~££I $ 933~IL6~90I $ OSL~ZSZ~£OI $
SZI`IZ£`ZI 9n8`ZI£`II nn6`bIZ`II
LSI`ULL Sn5`b55 8I£`b55
98Z`£Lb`nZi $ SLS`bni`56 $ Z£S`£8b`I6 $
bSL~SbLlJZ£ $ 9IO~ZOI~Lb£ $ bL31J03~b££ $
(SIL`n8Z`S) Ib8`L86`8I ILS`IZ6`IZ
£ZI`ILI`LZ bZL`UL6`I£ 8Z£`nn6`£Z
9b£`558`86Z $ ISb`£bi`96Z $ SL6`8L6`88Z $
6UU% 3UU% LUU%
i ~Zg~Z
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS
(ACCRIIAL BASIS OF ACCOIINTING)
Expenses
wvemmental activities:
Public safety
Public works
Health and social services
Culture end recreation
Community and economic
development
General government
Interest on long-term debt
Total governmental activities expenses
Business-type activities:
Sewage disposal work,
Water utility
Stormwnter utility
Parking facilities
America', River Project
Refue collection
Transit system
Total business-type activities eayenes
Total primary government expenses
Program Revenues
wvemmental activities:
Charges for services
Public safety
Public works
('allure and recreation
Uther activities
Operating grant, and conhibutions
Capital grants and contribution,
Total governmental acriviries program revenues
Business-type activities:
Charge, for services
Sewage disposal work,
Water utility
Stormwnter utility
Parklrtg facilities
America', River Project
Refue collection
Transit system
Operating grants and contributions
Capital grants and contributions
Total business-type activities program revenue,
2003
$ 15,817,052
14,453,558
815,5za
7.3ti 7.147
9,431,702
4,211,922
1,605,326
Fiscal Year
2004 2005 2006
$ 16,605,481 $ 18,636,877 $ 18,892,980
1z,847,a1o 17,088,x83 1o,3xo?az
1;?x0,tilx ti54,4tix ti78,748
7,8ax,11a 8,a7a,183 x,oz7,5o5
12,662,552 9,68Q,046 8,541,167
3,773,136 4,048,475 3,868,687
1,248,498 1,298,367 1,46Q, 730
53,7oz,z31 50?70,810 5x,881, aoo 5x,aoo, l3x
4,655,696 5,282,016 4,656, 172 5,298, 353
a,145,x83 x,308,738 a,z3z, a8x a,7oo, a83
- 1,184,xti8 1,114, 811 1.153, 028
1,aa5,a3a 1,o55,azx 1,00x, 071 1,ozx, az7
414,830 1,064,701 515, 570 82, 617
2,14Q,807 2,238,254 2,202, 800 2,463, 795
2,055,248 2,257,078 2,326, 908 2,555, 080
1x,857,998 18,051,184 10,052, 821 17,883, 383
$ ti8,5ti0,229 $ 74,32? 994 $ 70.534.221 $ 77,343,522
$ 1,58ti,255 $ 1,785,787 $ 1,900,938 $ 1,809,481
3,3ti7, 720 3,392,ti50 3,371,073 3,370 ?91
2,145,435 2,282,983 2,143,246 2,218,315
764,732 873,457 945,712 895,920
13,677,503 12,197,307 14,603,106 12,902,410
3,447,052 5,153,258 6,919,296 6,881,573
za,x88,ox7 z5,o85,aaz zx,883,371 a8,o7~ xxo
4,30Q, 156 4,719,491 4,552,587 5,077,491
3,975,5x8 a,3o7,z38 a,aza,o7a a,ooa,3ao
- 754,101 084,570 xz8,85o
1,az7,140 1,043,axo 1,88x,x37 1,880,0az
147,695 881,089 26,061 51,373
1,981,105 2,157,285 2,283,677 2,397,525
201,367 319,216 389,106 341,743
880,822 825,538 651,967 920,7ti2
11,938,797 11,007,ti7ti 3,030,378 2,7ti9,ti57
24,852,686 26,615,124 17,732,357 19,043,383
Total primary government program revenue, $ 49,841,383 $ 52,300,566 $ 47,615,728 $ 47,121,373
TABLE 2
2007 2008 2009
$ 20,32ti,724 $ 10.900.210 $ 22,038 ~ti5
10,505,500 1s,sa7,oos 19,o79,oss
75a?ti7 800,5titi 8a~?37
9,837,299 1Q,857,x09 12,6x0,716
11,965,805 11,961,58x 12,693,1x0
a,9ao,15a 5,soa,oo3 o,az3 aos
1.aoo.7as zs7zan 3.1oa.12o
65,735,657 67,81x,257 76,889,080
5s1a,o7o o,1a1,5za o,32o, 7os
a,7so,oo3 asla,o9z o,loo, a91
1,198,ti75 1.700.735 2,138, 198
1,611,xx7 2,173,110 2,147, x05
x3x,667 126,699 61, 927
2,x96,018 2,72x,050 2,788, 665
2,76Q,x59 2,703,983 2,625, 1x5
19,095,405 20,390,793 22,188,539
$ 84,831,062 $ 88,205,050 $ 99,077,619
$ 1,85? 324 $ 2,088,723 $ 2,020,ti25
x,839,781 x,061,883 x,x56,36x
2,251,562 2,109,571 2,279,688
1,07x,550 1,382,889 1,557,597
1l,tial 90a 11.709,123 12.5999ti7
23,7x1 ~sz s,o3z,ooz x.11,729
a5,aoo,ao3 z9,3sa,791 27,725 a7o
5,259,x32 5,4s4,o79 5 yo4,535
4,743s9o 4s75,53o s ~zo,o42
1.227,2x3 1,7titi,33a ?;?91;?a9
1,977,757 2,1x1,607 2,22x,185
3,099 2,1x0 -
2,642,251 2,710,583 2,872,6x9
23 7,088 195, 817 19ti;L ti0
1,1o7,3aa 1;LO9,o3o 1,095 aao
1,ti70,87a 2,830,2ti3 3,013 321
18,928,98x 21,215,989 23,518,787
$ 6x,335,387 $ 50,600,780 $ 51,2xx,757
(conrinued)
sa
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST SEVEN FISCAL YEARS
(ACCRIIAL BASIS OF ACCOIINTING)
Net (Expense)/Revenue
Governmental acriviries
Business-type activities
Total primary government net expense
General Revenues and Other Changes in Net Assets
Governmental activities:
General Revenues
Property taxes
Local option ,ale, tax
Hotel/motel tax
Utility francMse fees
Deming
Unrestricted investment earnings
Gain/Qossl on ,ale of capital a++etR
Uther
Transfers
Total governmental activities
Business-type activities:
General Revenue,
Property tare,
Unrestricted investment earnings
Uein/Qossl 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
Fiscal Year
2003 200a 2005 200ti
$ (28,713,53x1 $ (30,591,3681 $ (29,998,029) $ (31,382,1x91
9,99a,o88 8,503 aao 1,079,530 l,loo,ooo
$ (18,718,8x6) $ (22,027,x28) $ (28,918,x93) $ (30,222,1x9)
$ 18,041,049 $ 18,588,367 $ 19,767,x92 $ 19,716,620
6,x92,203 7,105,183 6,963,12a 7,336,12a
970,232 1,31a,11a 1,383,660 1,862,x39
- 86??75 1,310,064 1,521;L01
9,539,598 11.031.022 11,ti9a,105 1 a,03a,8a7
1,7x9,301 a97,3ti1 1.190.337 1,081,1x1
11x9,650) 175,231 170,642 77,627
1,228,232 638,681 560,789 572,602
(7,72Q,xb2) 1Q,956,246 (1,68x,581) 5,033,97a
30,150,503 51,768,480 41,355,632 51?3ti,575
506, OSa - - -
321, aa7 181,ti7a 322,88a 339, 599
1168, 0011 25 36 703
7,72Q x62 (10 956,2x61 1,68x,581 15,033, 97x)
8,379, 962 (10,774,547) 2,007,501 (4,693, 672)
$ 38,53Q, x65 $ 40993,933 $ 43,363,133 $ x6,542, 903
$ l,a3ti,9ti9 $ 21.177,112 $ 11.357,003 $ 19,85a,a2ti
18,374,ti50 (2?10,ti07) 3,087,037 (3,533,ti72)
$ 19,811,619 $ 18966,505 $ 1x,xxx,640 $ 16,320,75x
TABLE 2
(continued)
2007 2008 2009
$ (20,329,25x) $ (38,x29,ab61 $ 1x9,163,110)
1166,x21) 825,196 1,330,2x8
$ (2Q,x95,675) $ (37,60x,270) $ (x7,832,862)
$ 21,656,908 $ 22,7xx,563 $ 23,716,819
zsn,ao3 s,o2oss9 7,oa9 ss3
1,Sti9,743 1,ti22,455 loll 954
la9? ago 1,510,123 lase ~9z
15,556,551 15,346,x68 9,627 ,391
1,870,x03 2,741,x99 2,215 ,x13
- 92,525 x07 ,503
58ti 931 898,2x1 918 ,ti05
(7.033) (2,252,1551 (24,82ti 982)
so,543 ~zb so,73o,ws z2sob s4s
790,030 o3o,oa9 a33,1as
- 11.730 ~,3oa
7,033 2,252,155 24,82ti 9s2
80a,2ti9 2,893,9x0 25,2ti2,a3a
$ 51,347,x95 $ 53,62x,548 $ x8,069,282
$ 30,213 972 $ 12 301,142 $ (2ti 35ti ~ti21
ti37,8a8 3,719,130 2ti,592,ti82
$ 30,851,820 $ 16,020,278 $ 236,420
85
CITY OF DUBUQUE, IOWA
FIIND BALANCES OF GOVERNMENTAL FIINDS
LAST SEVEN FISCAL YEARS
(MODIFIED ACCRIIAL BASIS OF ACCOIINTING)
Ueneral Fund
Reserved
iTnreserved
Totalgeneralfund
All Other Uovemmental Funds
Reserved
iTnreserved, reported in.
Special revenue funds
Debt service fund
Capital projects funds
Permanent funds
Fiscal Year
2nu3 2nn4 2nu5 2nn6
$ 4,573,723 $ 3,233,335 $ 3,169,453 $ 1,477,141
12,218, 787 13,685,063 13, 706,134 16,050,997
$ 16.792 $ 16.91839R $ 16.R75.587 $ 17.52R,13R
$ 14,525,251 $ 14,231,390 $ 13,607,759 $ 15,564,016
11,RR6,631 9,72u,412 5,777,233 7,277,471
- (6R,569) (56,32n) -
5,R46,n16 7,353,593 11,191,461 (981,24R)
7o,n91 71,373 73,62R R3,367
Total all other governmental funds ~ ~~~ X27 9R9 8 ~1 ~i iR ] 99 ~ ~i i 59~ 7fi1 ~ ~] 9~~ fii ifi
98
S~` S LC y6S Ilbb' SC
OSS~S£ 356££ SZ3~SII
bIZ~659~5 3bb~SL3~L b5£~56I~b
n6£`I86`S I£6`I£b`L 868`985`L
Sn£`b£9`6I $ 8£n`L88`I£ $ 6I5`Zb6`£I $
I ICI I b L ~ Lb~ Ley b L ~ L'Lb i,~i, i;~ `~
I8I `9nZ`b I 9I n`Z86`L I I £9`LZ8 `L I
IuL`b98`b $ SZ8`669`I $ £n£`SSb`b $
6UU% 3UU% LUU%
£ ~Zg~Z
CITY OF DUBUQUE, IOWA
CHANGES IN FIIND BALANCES OF GOVERNMENTAL FIINDS
LAST SEVEN FISCAL YEARS
(MODIFIED ACCRIIAL BASIS OF ACCOIINTING)
Revenues
Taxes
Special assessments
Licenses and permit,
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Conhibutions
Deming
Miscellaneous
Total revenue,
Expenditures
Uurrent
Public safety
Public work,
Health and social services
Culture and recreafion
Community and economic development
General government
Debt service
Principal
Interest
Capital projects
Total expenditures
Excess 1 deficiency) of revenue, over
)under) eayenditures
Other Financing Sources (IIses)
Issuance of bonds
Issuance of refunding bond,
Discount on bond,
Payment to refunded bonds escrow agent
Transfers in
Transfers out
Sale of capital assets
Total other financing sources lu,e,1
Net change in fund balance,
Debt service as a percentage of noncapital expenditures
Fiscal Year
?nu3 ?nn4 ?nu5 ?nn6
$ 25,50893ti $ 27,8ti1?73 $ 29,430,135 $ 30,043,1ti7
5ti 1,40ti 717,305 197,195 3~~,~14
753,990 1,063,081 1,078,722 965,712
17,249,290 17,057,994 18,370,358 15,021,722
5,325,031 5,666 307 5 918,542 ti,ti20,243
4ti5,787 241,572 2ti7,53ti 204,201
1,750,519 5o?93z 1,197,091 l,o9o,aa5
q-}7,960 345,415 306,809 246,908
9,539,598 11,631,022 11,694,105 14,034,847
1,312,348 1,139,057 1,573,305 1, l Oti,991
62,914,865 66,225,958 70,034,398 69,662,450
15,278,654 16,764,510 18,652,246 19,535,369
11,86Q,004 10,723,527 21,301,239 11,605,567
749,435 721900 titi2?31 715,598
7,515,522 7,470 X04 8,180,832 9 998,ao2
9,010,808 11 aza,oll 9,825,470 ~981,oa5
3,835,609 4,227,335 4,022,785 4,09Q,866
2,009,986 2,117,773 1,769,960 1,325,970
1,008,019 1,3oa,8oz l;zao,az7 1,a93,5oa
9,930 311 ti,8ti5,119 8 ~2ti,840 14,528 340
01,858,ao8 oz,119 ?a7 73,88z,o3o 73,275,321
1,056,457 4,106,711 (3,847,632) (3,612,8711
- - - 13,ti82
150,000 795,000 7,277,665 1,515,750
- - 158,487) -
1150,000) - - 11,494,3711
5,3ti7 980 8,titi2,300 12981.055 ? 334,ti05
(21,073,8051 (15,Oti0,titi9) 11ti,105,1841 (11904,8901
117,239 2oa,3aa 17o,oaz 15o,a91
(15,588,580) 15,339,025) 4,266,291 14,384,733)
l1n 54~1og1 ~ !174741 Al ~ AlR fi59 ~ !7997 fi0Il~
7.379-b ti329'o 5 4ti9'o 4.999'0
TABLE 4
'11117 '11118 '_11119
$ 32,526,525 $ 33,898,692 $ 3x,x5x,lab
586,x59 177,585 250,372
1,052,896 1,153,x29 1,088,386
1ti,7a.1,703 14,256,523 15,796,822
7 351,191 7,833,151 8,0?9,189
158,3ti0 188,ti03 199,839
1 913,420 ?,731 953 ? ~Oti 382
1,168,x63 6,13x,002 1,369,759
15,556,551 15,346,x68 9,627,391
1,1x9,546 1,269,376 1,600,679
7s ~os,l la sz,989,7sz 7a,o2z ao5
2Q,743,196 21,5x2 ,661 21,335,192
12,506 378 16,331 ,107 14,2ti1,551
783,209 797 ,oaa s15,s73
lo;zaa,zaa lo,z77 ,787 12;LZ7,5oo
11,695,902 11,8x7 ,512 11,953,279
x,xxl,ox3 6,310 ,939 5,836,839
l,titi3 339 1,7ti? ,375 2,1ti9,ti78
l,alz,olz z,aoo ,a31 3,095,100
s~2?257 15,351 sas 24,274,1zo
71,716,SSO sb,bzs X04 95 y69 ~04
6,491,534 (3,638,522) (2134ti?391
7x3, 591 23,083,696 _5,905,000
- 2,965,000 -
- (2titi,1581 148,5161
- (2,875,000) -
10 394, 72ti 14,801,589 7,451,152
111,789, 5481 (18,185,109) (9,084,2281
2,811, x83 2,901,190 593 95ti
2,160, 252 22,x25,208 x,817,36x
$ 8_ti51 98ti $ 1 R 7Ri~ N !1 n 528.8751
5 Ol% 6.55% 7 68%
87
CITY OF DUBUQUE, IOWA
TAMABLE AND ASSESSED VALIIE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOIISANDS OF DOLLARS)
TABLE 5
Real Property Esemptious Total Ratio of Total
Taxable Value to
Levy Fiscal Taxable Assessed Taxable Assessed Total Assessed Total Direct
Year Year Value Value Real Property Value Value Value Tax Rate
1998 2000 $ 1,389,352 $ 1,99Q,428 $ 10,018 $ 1,379,334 $ 1,99Q,428 6930 10.71601
1999 2001 1,377,518 2,014,897 1Q,194 1,367,324 2,014,897 67.86 11.06712
2000 2ooz l,az9,oz5 ~,oso,ol9 10,097 l,als a2s ~,oso,ol9 o9.2z lo.7ooso
tool zoos lsao ~oo ~s17,9zo 10,141 lsso,oos ~ 317,920 00.01 1o.21zoo
2002 2004 1,572,776 2,350,317 9,694 1,563,082 2,350,317 66.51 1027303
2003 2005 1,666,033 2,575,400 9,599 1,656,434 2,575,400 6432 10.07200
2004 2006 1,710,334 2,679,078 9,862 1,70Q,472 2,679,078 63 47 9 69910
zoos 2007 1,7so 35a ~,soa,sos 9,122 1,7712sz ~,soa,sos os.lo 9.9soso
2000 zoos l,sz~3oa ~,s7o,17s s,9s9 l,sla,sos ~,s7o,17s os.zl 1031090
2007 2009 1949,071 3,171,081 9,298 1939,773 3,171,081 01.10 9.90904
ss
CITY OF DUBUQUE, IOWA
PROPERTF TAY RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL FEARS
(TAY RATES PER $1,000 ASSESSED VALIIE)
Dubuque
Levy Fiscal Dubuque School
Year Year City Dish•ict
1998 2000 $ 10.71601 $ 11.53111 $
1999 2001 11.Oti712 12.1709ti
200o zoo2 10.76080 135o4a4
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 10.31x90 lti ao92s
2007 2009 9.9o9oa 10.89000
Board of
Education and Area 1 Voc. Dubuque
Independents Tech Couldy Total
0.56187 $ 0.55128 $ 554016 $ 28. 90043
0.50467 0.56995 5.60750 29. 92020
05480ti 0.57072 5 73669 31. 12071
0.55492 0.57507 5.60064 3Q ti8145
0.61686 0.57791 5.59515 30. 91063
0.57269 059804 6.08923 31. 60687
0.60226 0.60517 6.08416 32. 08764
0.oo8oz 0.01127 o.179za 33. 3oaza
0.03100 0.01270 ti.42ti91 3x. 39730
o.9s2so o5s713 6.414s9 34. 78326
Source: Dubuque County Auditor', Uffice.
TABLE 6
Ratio of
Dubuque City
to Total
37.08 °o
3ti.99
3458
3328
33.23
31.87
30.23
29.97
29.99
28.00
89
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAYPAYERS
CIIRRENT YEAR AND NINE YEARS AGO
(IN THOIISANDS OF DOLLARS)
Taxnaver
Ikennedy Mall
Medical Associates Realty LP
Otto A LLC
Nordstrom, Inc.
The McGraw Hill Companies Inc.
Walter Development LLC
Platinum Holdings LLC
Minglewood Limited Partnership
Asbury Dubuque LLC
Lexington Dubuque LLC
American Trust &; Savings Banl:
Plaza 2li Inc.
Interstate Power Company
Peoples Natural Gas
A.Y McDonald Manufacturing Co.
U.S West Communications
TABLE 7
2009 2000
Percentage of Percentage of
Total CiTy Total city
Taxable Taxable
Taxable Assessed Taxable Assessed
Assessed Value Rank Value Assessed Value Rank Value
$ X6,372 1 .83 °~° $ 19,990 3 1 00 °~°
19,157 2 60 9,955 5 .50
17,500 3 .55
16,RR4 4 .53 12,R54 4 65
11,437 5 .36 7,366 9 .37
11,2RR 6 .36
11,179 7 .35
9,948 8 .31
9,R96 9 .31
9,R44 In 31
7,27R In
7,x61 s
53,944 1
20,395
R,15n 7
9,199 6
$ 1A3,505 A.51% $ 156,992
Effective 2001, utility companies (Alliant Energy/Interstate Power and Aquila Natural Gas) pay excise tax on revenue to the state
rather than property taxes.
Source: Dubuque County Auditor's Office.
37
39
2.71
1 lit
41
46
7.88%
90
CITY OF DUBUQUE, IOWA
PROPERTY TAY LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOIISANDS OF DOLLARS)
TABLE 8
Ratio of Total
Taa Ratio of
Percent of Delinquend Collections to Outstanding Delinquend
Fiscal Total Taa Current Taa Curreld Tases Taa Total Taa Total Taa Delinquent Tases to Total
Year Levy (1) Collections Collected Collections Collections (2) Levy Tases Taa Levy
2000 16,497 16,380 993 115 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 14
2003 15 328 15? 15 993 ? 16 15,431 100 7 130 0.8
2004 lti ~08 15 937 983 11 15 948 98.4 207 13
2005 lo,aos l0 3s3 aa.s 20 lo,ao3 loo.0 190 1.2
2006 16,229 16,146 99.5 2 16,148 99.5 182 1.1
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
2ooa is aaz ls,o~o as.3 s ls,o75 as.3 2oz 1 a
(1 1 Include, tax increment levy
(2) Include, tale, collected in June by the County but not received by the City until July
91
CITY OF DUBUQUE, IOWA
RATIOS OF OIITSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Fiscal
Fear
'_I II II I
Znnl
Zi ii i2
Zi ii i3
Zi a i4
Zi ii i5
Zi ii i6
Znn7
Zeus
Znn9
Governmental Activities
Tas Tas
General Increment Increment
Obligation Financing Financing Loans
Bonds Bonds Notes Payable
$ 4,522,500 $ 4,378,669 $ - $
3,4u5,nnn 5,963,SR5 -
20,945,000 5,873,155 -
19,865,000 4,943,169 -
19,nlu,nnn 3,R2u,394 655,nnn
24,960,000 3,450,820 622,211
24,165,750 3,040,304 590,439
22,99u,nnn 2,594,831 1,279,885
21,860,000 25,136,402 1,279,636
26,nRU,nnn 24,611,676 1,169,684
Business-Type Activities
General
Obligation Capital Loan
Bonds Notes
- $ 3,572,500 $ -
- 9,nu5,nnn -
- 3,1u5,uuu -
- 5,14u,uuu -
- 6,66u,nnn -
- 8,11911,111111 -
- 11,619,ZSU -
- ll,n9u,nnn -
- 11670.000 611.977
Revenue Loans
Bonds Payable
$ 2,055,000 $ -
1,R9u,nnn -
1,7211,111111 -
1,54u,uuu -
1,35u,nnn -
1,15u,uuu -
9411,111111 -
72u,nnn -
4911,111111 -
1,445,nnn 39u,R9n
15u,nnn 14,655,nnn 3,914,n76
Note: Details regarding the City's outstanding debt can be found in the notes to the financial statements.
(1) Population and personal income data can be found in Table 17
* Personal Income unavailable at report date.
TABLE 9
Percentage Per
Total Primary of Personal Capita
Government Income (1) (1)
$ 14,528,669 100°'0 257
2u,263,585 1.34°~° 351
31,643,155 2.05°~° 549
31,488,169 1.98°-° 546
31,495,394 1 RS°~° 546
38,273,031 2.16°~° 663
40,355,743 2.17°~° 700
3R,674,716 2.n1°~° 67n
60,948,015 3 06°~° 1,057
72,416,326 * 1,255
92
CITY OF DUBUQUE, IOWA TABLE Io
RATIOS OF GENERAL BONDED DEBT OIITSTANDING
LAST TEN FISCAL YEARS
(IN THOIISANDS OF DOLLARS, EYCEPT PER CAPITA AMOIINT)
General Percentage of Percentage of
Fiscal Obligation Taxable Value Taxable Value Assessed Value Assessed Value Per
Year Bonds (1) of Property of Property of Property of Property Capita
2000 $ 4,523 $ 1,379,334 0.33°~° $ 1,990,428 0.23°~° 80
2un1 3,4u5 1,367,324 n.?5°-° 2,n14,R97 n 17°~° 59
2UU2 20,945 1,418,928 1 48°~° 2,USU,U19 1 U2°~° 363
2UU3 19,865 1,530,057 1.30°~° 2,317,926 U 86°~° 344
2un4 19,n1n 1,563,nR2 1.22°~° 2,35u,317 n R1°~° 33n
2UU5 24,960 1,656,434 1.51°~° 2,575,400 0.97°~° 433
2UU6 24,166 1,700,472 142°-° 2,679,078 0.90°-° 419
2un7 22,99n 1,771,232 1.3n°-° 2,Rn4,56R n R2°~° 399
2UU8 21,860 1,814,365 1.20°-° 2,870,178 U 76°-° 379
2UU9 26,U8U 1,939,773 1.34°~° 3,171,681 U 82°~° 452
(1) Excludes general obligation bonds reported in enterprise funds.
93
CITY OF DUBUQUE, IOWA TABLE II
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JCTNE 30, 2009
Net General
Obligation Percentage Amount
Bonded Debt Applicable Applicable to
Jurisdiction OutstandinE to City Government
Direct, City of Dubuque, Iowa $ 26,080,000 (1) 100.00°~0 $ 26,080,000
Overlapping:
Dubuque County 1,380,000 59.89 826,482
Dubuque Public School District - - -
Northeast Iowa Community College 1,080,000 23.81 257,148
Total Overlapping 2,460,000 1,083,630
Total $ 28,540,000 $ 27,163,630
Source: Dubuque County Auditor and Northeast Iowa Community College.
(1) Excludes general obligation bonds reported in enterprise funds.
Note: Overlapping governrnents 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 governrnents
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 governrnent.
94
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOIISANDS OF DOLLARS)
Debit limit
Total net debt
npplicnble to limit
Legal debit margin
Total net debt
npplicnble to the debt
limit a, a percentage
of debt limit
TABLE 12
2000 2001 2002 2003 200A 2005 2006 2007 2005 2009
$ 99,521 $ 100,745 $ 102,359 $ 115,89ti $ 117,S1ti $ 133,149 $ 138,789 $ 145,x01 $ 148,824 $ lti3,ti21
10,511 18,ti87 30,250 30,271 30,185 37,177 39,aa3 38,Oti0 ti0,a85 70,182
$ 89,010 $ 82,058 $ 72,109 $ 85,625 $ 87,331 $ 95,972 $ 99,3x6 $ 107,3x1 $ 88,339 $ 87,x39
10.56°0 18.55°0 29.55°0 26.12°0 25.69°0 2792°0 28A2°o 26.18°o a0ba°o x656°o
Legal Debt Margin Calculation for Fiscal Year 2009
E,timated actual value $ 3,272,x12,813
Debt limit-5%oftotnl actual vnlunrion $ 1ti3,ti20,tia1
Debt applicable Tp limit:
Qncluding GU Debt, TIF Debt, and Lea,e
Obligation, Paid from General Fund) 7ti,181,7titi
Legal debt margin $ 87,x38,875
CITY OF DUBUQUE, IOWA
REVENIIE BOND COVERAGE
PARKING BONDS
LAST TEN FISCAL YEARS
(IN THOIISANDS OF DOLLARS)
PARKING BONDS
TABLE 13
Net
Revenue
Available
Fiscal Gross Operating For Debt Debt Ser vice Requirements
Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage (3)
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
2009 2,270 1,412 858 250 12 262 3.27
WATER IITILITY BON DS
Net
Revenue
Available
Fiscal Gross Operating For Debt Debt Ser vice Requirements
Year Revenues (1) Expenses (2) Service Principal Interest Total Coverage (3)
2009 5.391 5.196 195 - 30 30 6.50
(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.
96
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
Fiscal Year Water Receipts
2000 $ 4,055,270
2001 4,135,930
2002 4,233,908
2003 4.154.899
2004 4.350.338
2005 4.340.789
2006 a,798,ao8
2007 4,856,353
2008 5,020,001
2009 5.358.419
Source: Cash basis receipt ledgers.
Sewer Receipts
$ 4,834,413
4,387,111
4,319,655
4.252.098
4.466.035
4.478.205
4,920,376
5,276,454
5,481,074
5.821.251
TABLE 14
97
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST FOIIR 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
2009 20.058 1.895 72 48 22.073
*Prior sis years information not available.
98
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CIISTOMERS
FISCAL YEAR 2009
TABLE 16
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
RousselotInc. $ 2n7,R57 1 3 RR °-o $ 313,616 1 5.39 °~o
Swiss Valley Farms 6R,U55 ? 1.27 16U,956 ? 2.76
Mercy Medical Center 56,268 3 LOS 87,748 4 1.51
Loras College 47,31 ~ 4 0 RR 53,531 6 0.92
Dubuque Community Schools 46,462 5 0 87 53,277 7 11.92
University of Dubuque 43,1 162 6 i i Ri i
City of Dubuque Sewer Treatment 35,RU5 7 i i 67
Alliant Power Company 35,U59 R i i 65
Inland Protein Corporation 33,141 9 0 62 127,933 3 2.20
Clarke College 32,478 10 0 61
Western Dubuque Biodiesel 77,428 5 1.33
Finley Hospital 4R,72n R nR4
Tablemound Mobile Home Park 46,145 9 n 79
Premier Linen & Dry Cleaning 45,691 i In n 7R
Total Receipts
$ 5,358,419
~ s,szl,zsl
99
CITY OF DUBUQUE, IOWA TABLE 17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Public
Per Capital School
Personal Median Enrollment IInemployment
Fear Population Personal Income Income (1) Agee (2) (3) Rate (A)
2nnn 56,467 $ 2,293,137,nnn $ 25,691 34 9,697 2.7
2UU1 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
2nu5 57,686 2,Rn7,625,nnn 3u,65n 37 1u,547 4.5
2nn6 57,686 2,983,nnu,nnn 32,29n 37 1u,733 35
2UU7 57,686 3,074,666,000 33,290 37 10,727 3 7
2008 57,686 3,206,000,000 34,571 38 10,614 3 8
2UU9 57,686 * * 37 10,697 6.2
Sources:
(1) LL S. Department of Commerce, Bureau of Economic Analysis.
(2) Bureau of Census: 2i ii ii i Census.
(3) Dubuque Cgmmunity School District.
(4) Iowa Department of Employment Services as of June 3i i
* Unavailable at report date.
100
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CIIRRENT YEAR AND YEAR 2000
2009
F.mnlnver
Dubuque Community Schools
John Deere (21
IBM (3)
Mercy Medical Center
Finley Hospital
Medical Associates
Eagle Window ~, Door
City of Dubuque
Prudential Retirement
Dubuque Racing Association
Farmland Food,
Times Mirror (Formerly Wm C Brownl
Interstate Power Company
Flexstee1141
Percelrtage of
# of Total City
Employees Rank Employment(1)
1 955 1 3 7ti °'o
1,ao5 z z.8z
1,300 3 2.50
952 4 1.83
900 5 1.73
82ti ti 1.59
750 7 l.aa
ti57 8 12ti
590 9 1.13
525 10 1.01
9,920
Source: ureater Dubuque Development Corp
2000
TABLE 18
Percelrtage of
# of Total City
Employees Ranl: Employment(1)
1,500 2 3.10 °'o
~,~SO 1 a.oa
1,500 2 3.10
850 8 1.75
950 ti 1.9ti
a5o l0 93
1,300 4 2.ti8
1,000 5 2.Oti
930 7 1.92
825 9 1.70
11,555
(11 Based on the percentage of total employment for Dubuque area from the U.S. Department of Labor,
Bureau of Labor Statistics.
(2) Located just outside City Limits.
(3) Anfrcipated employment. Actual number not available at tMs rime.
1 A) Flexsteel had numerous layoff,, in 2007
101
CITY OF DUBUQUE, IOWA
FIILL-TIME EQIIIVALENT CITY GOVERNMENT EMPLOYEES BY FIINCTION/DEPARTMENT
LAST TEN FISCAL YEARS
Full-Time Equivalent Employees as of June 30
2000 2001 2002 2003 2004 2005 2006 2007 2005
Public Safzty
TABLE 19
2009
Emzrgzncy Communicarions 9 00 10.00 10.00 10.00 10.00 10.00 11.00 11.00 11.00 13.00
Fire 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00 90.00
Police 95 00 95 00 9ti.00 97.00 97.00 97.00 99.00 100.00 101.00 108.ti7
Building Service, 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 7.00 8.00
Public Work,
Public Works 81.00 81.00 83 00 8ti.02 8730 88.55 87.00 87.00 87.00 88.00
Enginzzring 22.00 24.00 24.00 24.00 24.00 24.00 25.00 25.00 25.00 2ti.00
Health fi, Social Services
Health Service, 5.00 5.00 5.00 5.00 5.00 5.00 5.00 5.00 4.00 4.00
Human Right, 2.00 2.00 2.00 2.00 2.00 2.00 3.00 3.00 3.00 3.00
Culture and Recreation
Civic Center 9 15 9 15 9 15 9.15 9 15 9.15 1.15 0.15 0.15 0.15
Library 17 00 18.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00
Park 20.92 20.92 21.92 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 7 93 7 93 7 93
Community & Economic Development
Community /Economic Dev 5 00 5 00 5 00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
Housing Services 18.00 18.00 20.00 20.25 20.00 21.00 21.00 20.25 18.00 22.00
Planning Services 7 00 7 00 7.00 7.00 7.00 7.00 8.00 8.00 8.00 8.00
ueneral uovernment
Airport 13.00 13.00 13.00 14.00 13.00 13.00 13.00 13.23 12.00 12.00
Cable TV 3.00 3.00 3.00 2.00 2.00 2.00 2.00 2.00 2.00 2.00
City Clerk', Uffice 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00 3.00
City Managzr's Office 9 00 9 00 9.00 11.00 10.00 10.00 11.00 11.00 11.00 13.50
Finance 1 ti.00 1 ti.00 1 ti.00 1 ti.00 15 00 14.00 14.00 14.00 14.00 14.00
Lzgal 2.00 2.00 2.00 2.00 2.00 2.00 2.ti2 3.00 3.00 4.00
Information Service, 6.00 6.00 6.00 6.00 6.00 6.00 6.00 6.00 7.00 7.00
Buiness Type
Water 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00 23.00
Water Pollurion Control 19.00 19.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00 18.00
ParMng 8.00 9 00 11.00 11.50 10.50 10.50 8.00 8.00 7.00 7.50
Transit 12.00 12.00 7.50 8.00 7 00 7 00 8.55 8.00 7.00 7.00
Total 511.00 516.00 S1S.50 523.77 519.50 521.05 S1S.17 516.45 512.00 532.67
Source: City Budget Records.
Department, with employee, who are all ocated to mo re than one fu nction are reflected in area with largest nu mber of emplo yee,.
.'
0
N
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FIINCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
2000 2001 2002 2003 2004
Public Safety
Police
Physical arresUi 2,Rn7 2,564 - 4,nnn 4,SSn
Traffic violations" - - 2,462 2,126 2,427
Parking violations' - - - 51,162 49,985
Fire
Number of calls answered 3,15R 3,736 4,774 3,974 4,181
Inspections conducted R29 RUS R41 524 4nR
Sewer
Sewage system
Daily average treatment in gallons 10,200,000 9,000,000 9,000,000 8,000,000 8,000,000
Maximum daily capacity of treatment
plant in gallons 15,nnu,nnn 15,nnu,nnn 15,nnu,nnn 15,nnu,nnn 15,nnu,nnn
Water systems
Daily average consumption in gallons R,nnu,nnn R,nnu,nnn R,nnu,nnn R,nnu,nnn R,nnu,nnn
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, 279 13,979 13,594 1 U,435 1 U,33n
Sources: Various City Deparhnents.
' Statistics not available for fiscal year 2002.
z Statistics begin in fiscal year 2i a i2.
3 Statistics begin in fiscal year 2i u)3.
TABLE 20
Fiscal Fear
2005 2006 2007 2008 2009
4,795 4,79U S,U78 S,U9U 6,325
2,171 2,111 1,986 6,881 8,8U1
S1,UU4 46,575 42,53U 4U,741 36,457
4,3nn 4,176 4,454 4,699 4,48n
1,135 4n9 36n 624 443
B,SUU,000 B,SUU,000 8,000,UUU 1U,31U,000 7,981,000
13,Snu,nnn 13,Snu,nnn 13,Snu,nnn 13,Snu,nnn 21,131,nnn
7,72U,000 7,36U,000 7,647,685 5,793,3U9 7,845,000
1R,nnu,nnn 1R,nnu,nnn 1R,nnu,nnn 17,nnu,nnn 1R,nnu,nnn
1u,42R 1u,573 lu,Rn7 11,79R 1u,774
103
CITY OF DUBUQUE, IOWA
CAPITAL ASSET STATISTICS BY FIINCTION/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
2000 2001 2002 2003 200-1
1 1 1 1 1
18 18 18 18 18
6 6 6 6 6
3 3 3 3 3
* * * 273 290
* 1.191 1.195 1.500 1.591
2 2 2 2 2
478 478 478 584 560
1 1 1 1 1
1 1 1 1 1
38 38 39 42 42
833 833 834 850 850
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
20,550 20,550 20,200 20,800 21,000
301 302 305 305 310
21.130 21.000 20.550 21.032 21.206
2.635 2.685 2.712 2.713 2.736
TABLE 21
Fiscal Year
2005 2006 2007 2008 2009
1 1 1 1 1
19 19 19 19 19
6 6 6 6 6
3 3 3 3 3
290 295 307 317 320
1,631 1,755 1,802 1,855 1,877
2 2 2 2 2
421 421 405 405 405
1 1 1 1 1
1 1 1 1 1
as as a7 a7 a7
8ss Bas 898 898 898
1 1 1 1 1
2 2 2 2 2
7 7 8 7 7
1 1 1 1 1
20 19 19 20 20
* 263 286 290 295
* 116 120 122 143
1 1 1 1 1
21,000 21,443 21,568 21,633 21,347
312 313 315 316 317
21.016 21.257 21.210 21.243 21.347
2,770 2,780 2,798 2,812 2,831
l04
~"'1
EideBailly...
~~
cP:~.. s: fiu~l~rv ;ern lsc~l:
REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GO i~~tNM~NTAUD~T~NG 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 aggregate discretely presented component units, each major fund, and the aggregate
remaining fi>~nd information of the City of Dubuque, Iowa, as of and for the year ended June 30, 2009,
which collectively comprise the City's basic financial statements listed in the table of contents, and have
issued our report thereon dated December 21, 2009. 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 Govern;°raent Auditing Standards, issued by the Comptroller General of the United
States.
The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented component unit,
were not audited in accordance with Gavern;°reent Auditing Standards, and accordingly, this report does
not extend to those financial statements.
Tnternal Control (werFinancial Rennrfin~
In planning and performing our audit, we considered the City's internal control over financial reporting as
a basis for designuig 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 and material weaknesses.
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.
PEOPLE. PRINCIPLES. POSSIBILITIES.
www.eidebailly.com 105
3999 Pennsylvania Ave., Ste. 1001 Dubuque, Iowa 52002-2273 1 Phone 563.556.17901 Fax 563.557.7842 1 EOE
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.
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 items II-A-09 and II-B-09 are material weaknesses.
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 Government Auditing Standards. However, we noted certain immaterial instances of non-
compliance or other matters that are described in Part III of the accompanying Schedule of Findings and
Questioned Costs.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2009, are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City. 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 21, 2009.
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 21, 2009
106
~-»1
EideBailly.,
~~
cr.~~, ~ Ru~l~rs; :ern 1sr~1:
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
C",omnliance
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
Corrapltance Supplerraent that are applicable to each of its major federal programs for the year ended
June 30, 2009. 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 Gavern~raent Auditing
Standards, issued by the Comptroller General of the United States; and OMB Circular A-133, Audits of
States, Local Gavern~raents, and Non-Profat 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,
2009.
Tnternal C'~ntrol (wer (",omnliance
The management of the City of Dubuque, Iowa, is responsible for establishing and maintainu7!g 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.
PEOPLE. PRINCIPLES. POSSIBILITIES. 10~
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, Iowa 52002-2273 1 Phone 563.556.17901 Fax 563.557.7842 1 EOE
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 21, 2009
108
CITY OF DUBUQUE, IOWA
SCHEDIILE OF EYPENDITIIRES OF FEDERAL AWARDS
FOR THE YEAR ENDED JCTNE 30, 2009
('rrantor/Program
Department of Commerce
Direct Program
Economic Development Support for
Planning Organizations
Department of Housing and IIrban Development
Direct Program
Community Development Block Grants/
Entitlement Grants
Community Development Block Grants/
Entitlement Grants
Community Development Block Grants/
Entitlement Grants
Shelter Plus Care
Pass-Through Program From
Iowa Department of Economic Development
HOME Investment Partnerships Program
HOME Investment Partnerships Program
Direct Program
Fair Housing Assistance Program
State and Local
Lower Income Housing Assistance Program
Section 8 Moderate Rehabilitation
Section 8 Housing Choice Vouchers
Lead-Based Paint Hazard Control in
Privately-Owned Housing
CFDA Agency or Program
Number Pass-throueh Number Fsnenditures
11.302 OS-87-04598 $ 75.000
14.218 B-06-MC-19-0004 230,095
14.218 B-07-MC-19-0004 1,715,191
14.218 B-08-MC-19-0004 283,946
14.238 IA26C 601021 17, 571
14.239 06-HM-198-29 350,000
14.239 02-HM-134-20 187,500
14.401 FF207IL087006 30,500
14.856 IA087MR0005 41,126
14.871 ILC-9004V 4,092,035
14.900 IALHB0375-07 751.980
Total Department of Housing and Urban
Development
Department of the Interior
Pass-Through Program from Iowa
Department of Natural Resources
Sportfishing and Boating Safety Act
Department of Justice
Pass-Through Program From
Iowa Department of Justice
Crime Victim Assistance Division
Violence Against Women Formula Grants
Direct Program
Bulletproof Vest Partnership Program
Bulletproof Vest Partnership Program
Bulletproof Vest Partnership Program
2699.944
15.622 FY-07-BIG 26.510
16. 588 VW-09-24C 1,831
16. 607 2006BUBY050 68
16. 607 2007BUBN050 1,917
16. 607 2008BUBN050 9,510
(continued)
109
CITY OF DUBUQUE, IOWA
SCHEDULE OF EIPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JCTNE 30, 2009
('rrantor/Program
Department of Justice (continued)
Pass-Through Program From
Dubuque County, Iowa, Sheriff
Public Safety Partnership and Community
Policing Grants
Helping Services for Northeast Iowa, Inc.
Enforcing Underage Drinking Laws Program
Enforcing Underage Drinking Laws Program
Direct Program
Edward Byrne Memorial Justice Assistance
Grant Program
CFDA Agency or Program
Number Pass-throueh Number Fsnenditures
16.710 08 JAG/C06-A16 $ 2,197
16.727 20-JD06-F07 2,961
16.727 2oo7-AIIFloo42 2,000
16.738 2006-DJ-B1-0214 9.607
Total Department of Justice
Department of Transportation
Direct Program
Airport Improvement Program
Airport Improvement Prograrm
Pass-Through Program From
Iowa Department of Transportation
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Direct Program
Federal Transit-Formula Grants
Pass-Through Program From
Iowa Department of Transportation
Capital Assistance Program for Elderly
Persons and Persons with Disabilities
Direct Program
State and Community Highway Safety
Occupant Protection
Total Department of Transportation
Environmental Protection Agency
Pass-Through Program From
Iowa Finance Authority
Capitalization Grants for Clean Water
State Revolving Funds
Capitalization Grants for Clean Water
State Revolving Funds
Capitalization Grants for Clean Water
State Revolving Funds
30.091
20 .106 3-19-0028-45 1,128,010
20. 106 3-19-0028-44 5,452
20. 205 STP-U-2100(634)--
70-31 79,326
20. 205 STP-A-946-0(1)--86-31 314,372
20. 205 ER-2100-(636)- -58-31 217
20. 205 2T-00-IA-012-002 148,726
20. 205 EPD-2100(638)--7Y-31 31,741
20. 507 IA-90-1349 880,883
20.513 16-1001-210-07 30,983
20.600 PAP 08-03, TASK 06 8,874
20.602 PAP 09-03, TASIL 6 16.486
2.645.070
66.458 PD-CW-06-39 51,345
66.458 PD-CW-09-49 215,250
66.458 PD-CW-06-39 180
(continued)
110
CITY OF DUBUQUE, IOWA
SCHEDIILE OF EYPENDITIIRES OF FEDERAL AWARDS
FOR THE YEAR ENDED JCTNE 30, 2009
('rrantor/Program
Environmental Protection Agency (continued)
Pass-Through Program From (continued)
Iowa Finance Authority (continued)
Capitalization Grants for Clean Water
State Revolving Funds
Capitalization Grants for Clean Water
State Revolving Funds
Capitalization Grants for Drinking Water
State Revolving Funds
CFDA Agency or Program
Number Pass-throueh Number Fsnenditures
66.458
66.458
66.468
Total Environmental Protection Agency
Department of Health and Human Services
Pass-Through Program From
Dubuque County, Iowa Health Department
Public Health Emergency Preparedness
Public Health Emergency Preparedness
Childhood Lead Poisoning Prevention
Projects State and Local Childhood
Lead Poisoning Prevention and
Surveillance of Blood Lead Levels in
Children
Total Department of Health and Human Services
93.069
93.069
93.197
CS 192341-O1 $
PD-C W-06-41
FS-31-08-D W SRF-002
3107
3109
5888LP05
Corporation for National and Community Service
Pass-Through Program From
Iowa Commission on Volunteers
AmeriCorps 94.006
AmeriCorps 94.006
Total Corporation for National and Community
Service
Department of Homeland Security
Pass-Through Program From
Iowa Department of Public Defense
Disaster Grants Public Assistance
Total
08-AC-13
07-AF-13
1,066
5,128
28.471
301.440
3, 241
10,362
12.120
25.723
137,319
39.762
177.081
97.036 FEMA DR-1763-DR-IA 58.269
$ 11.039.128
See notes to the Schedule of Expenditures of Federal Awards. 111
CITY OF DUBUQUE, IOWA
NOTES TO THE SCHEDIILE OF EYPENDITIIRES OF FEDERAL AWARDS
FOR THE YEAR ENDED JCTNE 30, 2009
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 (FMB Circular A-133, audits of States,
Local Grn~ernments, 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 - SIIBRECIPIENTS
cif the federal expenditures presented in the schedule, the City of Dubuque, Iowa, provided federal
awards to subrecipients as follows:
Proeram Title
Federal Amount Provided
CFDA Number to Subrecinients
Community Development Block Grants/
Entitlement Grants 14.218 $ 128,360
112
CITY OF DUBUQUE, IOWA
SCHEDIILE OF FINDINGS AND QIIESTIONED COSTS
FOR THE YEAR ENDED JCTNE 30, 2009
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued Unqualified
Internal control over financial reporting:
Material weakness identified Yes
Significant deficiency Yes
Noncompliance material to financial statements noted No
Federal Awards
Internal control over major programs:
Material weakness identified No
Significant deficiency None reported
Type of auditor's report issued on compliance for major programs Unqualified
Any audit findings disclosed that are required to be reported in
accordance with Circular A-133, Section .510(a) No
Identification of major programs:
CFDA Number
14.218
14.239
14.900
20.106
20.507
66.458
Dollar threshold used to distinguish
between Type A and Type B programs
Name of Federal Program or Cluster
Community Development Block Grants/
Entitlement Grants
HOME Investment Partnerships
Program
Lead-Based Paint Hazard Control in
Privately-Owned Housing
Airport Improvement Program
Federal Transit Formula Grants
(Urbanized Area Formula Program)
Capitalization Grants for Clean Water
State Revolving Funds
Auditee qualified as low-risk auditee
Part II: Findines Related to the Financial Statements:
SIGNIFICANT DEFICIENCIES/MATERIAL WEAKNESSES
II-A-09 Prenaration of Financial Statements
$331,174
No
Criteria A properly designed system of internal control over financial reporting calls for the
preparation of an entity's financial statements and accompanying notes to the financial
statements by internal personnel of the entity.
113
CITY OF DUBUQUE, IOWA
SCHEDIILE OF FINDINGS AND QIIESTIONED COSTS
FOR THE YEAR ENDED JCTNE 30, 2009
Part II: Findines Related to the Financial Statements: (continued)
Condition - 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.
Cause We recognize that with a limited number of office employees, preparation of the
financial statements is difficult.
Effect The effect of this condition is that the financial reporting is prepared by a party
outside of the entity. The outside party does not have the constant contact with ongoing
financial transactions that internal staff have.
Recommendation We recommend that City officials continue reviewing operating
procedures in order to obtain the maximum internal control possible under the circumstances
to enable staff to draft the financial statements internally.
Response -The American Institute of Certified Public Accountants implemented new
auditing standards in ?007. 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. The current five year audit contractual agreement
expires with year ending June 30, ?010, audit and City will review the issue prior to any new
agreement. The City implemented procedures to prepare adjusting journal entries.
Conclusion -Response accepted.
II-B-09 Material Audit Adiustments
Criteria - A properly designed system of internal control over financial reporting allows
entities to initiate, authorize, record, process, and report financial data reliably in accordance
with generally accepted accounting principles and the requirements of OMB Circular A-133,
Audits of States, Locad Gaverrarnerats, arad Nora-Profit Orgaraizatioras.
Condition -During the course of our engagement, we proposed material audit adjustments to
the financial statements and Schedule of Expenditures of Federal Awards that would not have
been identified as a result of the City's existing internal controls and, therefore, could have
resulted in a material misstatement of the Cit_y's financial statements and Schedule of
Expenditures of Federal Awards.
Cause There is a limited number of office employees with varying levels of experience with
the reporting requirements.
Effect -The effect of this condition was financial data not in accordance with generally
accepted accounting principles or the requirements of OMB Circular A-133,.4udits of States,
Locad Goverrarnerats, arad Nora-Profrt Orgaraizatioras.
Recommendation We recommend that finance staff continue to receive relevant training
and that management review all documentation completed by staff for use in preparing the
financial statements and Schedule of Expenditures of Federal Awards.
114
CITY OF DUBUQUE, IOWA
SCHEDIILE OF FINDINGS AND QIIESTIONED COSTS
FOR THE YEAR ENDED JCTNE 30, 2009
Part II: Findines Related to the Financial Statements: (continued)
Response -Finance staff will review audit findings with City Grant Committee during the
next quarterly meeting. Will implement procedures to improve information provided to
Finance including redesign of the grant checklist to capture grant limitations and/or
requirements, and to better communicate any specifications in the grant. Finance will
implement more review over financials including capital assets and depreciation, accounts
payable, and federal awards.
Conclusion -Response accepted.
Part III: Other Findines Related to Required Statutory Reoortine:
III-A-09 Certified Budeet -Function disbursements during the year ended June 30, 2009, did not
exceed the amount budgeted.
III-B-09 Questionable Expenditures - No expenditures that may not meet the requirements of public
purpose as defined in an Attorney General's opinion dated April 25, 1979, were noted.
III-C-09 Travel Expense No expenditures of City money for travel expenses of spouses of City
officials or employees were noted.
III-D-09 Business Transactions Business transactions between the City and City officials or
employees are detailed as follows:
Name, Title, and Transaction
Business Connection Description Amount
John Hefel, employee, spouse is owner of Services $ 1,494
A Frame of Mind Framing & Gallery
Cheryl Pregler, employee, spouse is owner Services 350
of Pregler Photography
Stacie Scott, employee, spouse is owner Construction 210
of Scott Elite Concrete
Tim Furlong, employee, owner of Services 350
Premier Entertainrnent Group
In accordance with Chapter 3625(10) of the Code of Iowa, the transactions above do not
appear to represent conflicts of interest since total transactions with each individual were less
than $1,500 during the fiscal year.
III-E-09 Bond Coveraee 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.
115
CITY OF DUBUQUE, IOWA
SCHEDIILE OF FINDINGS AND QIIESTIONED COSTS
FOR THE YEAR ENDED JCTNE 30, 2009
Part IV: Other Findines Related to Reouired Statutory Reoortine: (continued)
III-F-09 Council Minutes - No transactions were found that we believe should have been approved in
the Council minutes but were not.
The Council went into closed session on June 8, ?009. However, the minutes record did not
document the specific exemption for the closed session required by Chapter 21 of the Code of
Iowa, commonly known as the open-meetings law.
Recommendation -The City should comply with Chapter 21 of the Code of Iowa.
Response - An amended agenda listed the closed session under Pending Litigation -Chapter
?1.5(1) of the Code of Iowa. The reason was accidentally omitted from the council minutes.
In the future the City will comply with the Code of Iowa requirements.
Conclusion Response accepted.
III-G-09 Deposits and Investments In fiscal year ?009, the City revised its investment policy to
include municipal bonds as an approved investment option. Subsequent to the revision, the
City invested in municipal bonds. However, municipal bonds are not allowed under Chapter
12C of the Code of Iowa.
Recommendation The City should revise its investment policy to exclude municipal bonds
as an approved investment option. All municipal bonds held should be sold and reinvested in
accordance with Chapter 12C of the Code of Iowa.
Response Finance informed the Investment Oversight Advisory Commission (I(~AC) and
four investment managers that municipal bonds cannot be part of our investment portfolio
under Chapter 12C of the Code of Iowa and our Investment Policy will be amended. In
September 2009, all municipal bonds were sold and proceeds invested in accordance with
Chapter 12C. The City did not realize any loss from the sale of the municipal bonds held by
one manager.
Conclusion Response accepted.
III-H-09 Revenue Bonds No instances of non-compliance with the provisions of the City's revenue
bond resolutions were noted.
III-I-09 Solid Waste Fees Retainaee 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.
116