CAFR Comp Financial ReportMEMORANDUM
February 11,2004
TO:
FROM:
SUBJECT:
The Honorable Mayor and City Council Members
Michael C. Van Milligen, City Manager
Submission of Fiscal Year Ended June 30, 2003 Comprehensive Annual
Financial Report (CAFR), Parking Facilities Financial Statements,
Management Letter and Responses to Management Letter
Finance Director Ken TeKippe is transmitting the Fiscal Year 2003 Comprehensive
Financial Report (CAFR), Parking Facilities Financial Statements, Management Letter
and City Responses to the Management Letter. The City's independent auditor found no
instances of material non-compliance with all applicable laws, regulations, contracts,
and grants; and found the general-purpose financial statements free of material
misstatement. The auditor's report also notes that there are no matedal weaknesses in
the City's internal control structure. A separate section in the CAFR for Fiscal Year
2003 details specific findings and recommendations, as well as City responses. Pages
107-109 of the report provide this information. In addition to the comments in the report,
a management letter dated December 16, 2003, was issued which includes more
general comments relative to improving the City's overall accounting and control
systems. The Auditor's comments are attached, as well as Finance Department
responses.
I concur with the recommendation and respectfully request Mayor and City Council
approval.
MCVM/jh
Attachment
cc: Barry Lindahl, Corporation Counsel
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
Michael C. Van Milligen, City Manager
Kenneth J. TeKippe, Finance Director ~*'~:~. ~ ,~
Submission of Fiscal Year Ended June 30, 2003 Comprehensive Annual
Financial Report (CAFR), Parking Facilities Financial Statements,
Management Letter and Responses to Management Letter
February 4, 2004
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2003 CAFR and Parking
Facilities Financial Statements audited by Eide Bailly, LLP, and to enclose the Auditor's
Management Letter along with the City Finance staff's response. The City's
independent auditor found no instances of material non-compliance with all applicable
laws, regulations, contracts, and grants; and issued an unqualified opinion on the
financial statements. The auditor's report also notes that there are no material
weaknesses in the City's internal control structure.
BACKGROUND
The City of Dubuque is required to have an annual audit in accordance with generally
accepted auditing standards, Chapter 11 of the Code o_f Iowa, Government Auditing
Standards and U.S. Office of Management and Budget (OMB) Circular A-133.
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 City of Dubuque implemented a new financial reporting model, as required by the
provisions of GASB Statement No. 34, Basic Financial Statements - and Management's
Discussion and Analysis - for State and Local Governments, as of June 30, 2003.
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 Comprehensive Annual
Financial Report.
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
attached as well as Finance Department responses.
ACTION STEP
It is recommended that the City Council receives and files the Fiscal Year 2003 reports
identified above and receives and files this communication and related enclosures.
Copies of the financial statements for the Dubuque Metropolitan Area Solid Waste
Agency are available in the Finance Department if desired by Council members.
KJT/jmg
Enclosures:
Fiscal Year 2003 CAFR
Parking Facilities Financial Statements
Auditor Management Letter
Responses to Comments in Auditor Management Letter
CITY OF DUBUQUE, IOWA
MEMORANDUM
TO:
FROM:
SUBJECT:
DATE:
Michael C. Van Milligen, City Manager
Kenneth J. TeKippe, Finance Director ~-~...¢..~:~. ~,,~:~:~
Responses to Audit Management Letter-Fiscal Year Ended June 30, 2003
February 4, 2004
INTRODUCTION
Responses to the "other comments" section of the December 16, 2003 management
letter issued by Eide Bailly LLP subsequent to completion of the Fiscal Year 2003 audit
of the City are hereby submitted.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2003 details specific findings and recommendations as well as City responses.
Pages 107-109 of the report provide this information. In addition to the comments in the
report, a management letter dated December 16, 2003 was issued which includes more
general comments relative to improving the City's overall accounting and control
systems.
DISCUSSION
Finance Department responses to the Auditor's other comments (listed in italics) follow:
Conversion of Accounting Records
Auditor comment
The City maintains its records using the cash basis of accounting. However, in order to
comply with accounting principles generally accepted in the United States of America,
the comprehensive annual financial report (CAFR) must be prepared using the modified
accrual/accrual basis of accounting. Eide Bailly LLP currently posts all adjustments at
year-end which are necessary to convert the City's cash-basis amounts to the amounts
used in the CAFR.
At this time, the City is preparing the workpapers needed to convert the accounting
records to the modified accrual/accrual basis at year-end. Eide Bailly LLP posts the
journal entries and prepares the financial statements. A/though it may require increased
staffing levels, we encourage the Finance Department to continue in their advancement
of converting to the modified accrual/accrual basis and preparation of the financial
statements required in the CAFR.
City of Dubuque response
As noted in the management letter, City staff prepared all workpapers to convert
records to the modified accrual/accrual basis. City staff will continue to work towards
converting records from cash to GAAP at year end and preparation of the financial
statements. The size of the City's professional accounting staff limits available
resources to fully accomplish this goal. The current audit engagement arrangement,
which has two years remaining, provides for the auditing firm to convert the records and
prepare the financial statements. A change or upgrade in accounting software and
continued staff development may assist in our efforts to implement their
recommendation. However, the limited number of professional accounting staff will
most likely result in the audit firm continuing to prepare the financial statements.
Policies and Procedures
Auditor comment
We noted that the City is continuing the process of developing a written manual of
accounting policies and procedures but the manual is not complete at this time. A
manual defining the roles and duties of employees is complete, but the detailed
accounting manual is in process. Such a manual will assist the consistent application of
policies and procedures. The City should continue to develop the manual of accounting
policies and procedures and complete it as soon as possible.
City of Dubuque response
The Finance Department has prepared a manual the past two years to help define roles
and duties of employees. This manual is beneficial in cross training employees and
training new employees and is reviewed annually for changes in duties. Another manual
has been developed to detail significant accounting policies and procedures. Many
accounting policies and procedures currently are documented in the manual, which will
be expanded to include additional information on City of Dubuque procedures during the
current fiscal year.
2
Capital Assets
Auditor comment
The City has a centralized custodian in the finance department who maintains a record
of the City's capital assets, including additions and deletions made during the year.
During the fiscal year, the City adopted Governmental Accounting Standards Board
Statement No. 34. This statement increased the complexity of the capital assets by
requiring governmental infrastructure and depreciation on governmental capital assets
be reported. Due to this increased complexity, the City's capital assets records should
be closely reviewed for errors by other staff with knowledge of capital asset policies.
The compilation and review of all of the City's capital asset records, including
department summaries, should be completed prior to the beginning of the October audit
fieldwork.
City of Dubuque response
The Assistant Finance Director and I will work closely with the individual primarily
assigned to maintain capital asset records for the City to ensure that the update of
records is completed by October audit fieldwork.
GASB 39
Auditor comment
The governmental Accounting Standards Board has issued Statement No. 39,
Determining Whether Certain Organizations are Component Units which will be effective
for the City for the fiscal year ending June 30, 2004. This statement provides additional
guidance to determine whether certain organizations for which the City is not financially
accountable should be reported as component units based on the nature and
significance of their relationship with the City. Generally, it requires reporting, as a
component unit, an organization that raises and holds economic resources for the direct
benefit ora governmental unit.
City of Dubuqu~ response
The City Finance Department will coordinate with the CPA audit firm any information
required by GASB 39. 1 do not anticipate the GASB being applicable to the City of
Dubuque.
3
GASB 40
Auditor comment
The Governmental Accounting Standards Board has issued Statement No. 40, Deposit
and Investment Risk Disclosures which will be effective for the City for the fiscal year
ending June 30, 2005. This statement addresses common deposit and investment risks
related to credit risk, concentration of credit risk, interest rate risk, and foreign currency
risk.
City of Dubuque response
The City Finance Department will coordinate with the CPA audit firm any information
required by GASB 40. Since the implementation is two fiscal years away, time is
available to research any requirements applicable to the City of Dubuque.
KJT/]mg
4
EideBaillyLL,
Consultants · Certified Public Accountants
To the Honorable Mayor and Members of
the City Council
City of Dubuque
Dubuque, Iowa
We have audited the financial statemants of the City of Dubuque, Iowa, for the year ended June 30, 2003, and
have issued our report thereon dated December 16, 2003. Professional standards require that we provide you with
the following information related to our audit.
Our Responsibility under Auditin~ Standards Generally Accepted in the United
States of America and OMB Circular A-133
As stated in our engagement letter dated May 9, 2001, our responsibility, as described by professional standards,
is to plan and perform our audit to obtain reasonable, but not absolute, assurance about whether the financial
statements are free of mater/al misstatement and are fairly presented in accordance with accounting principles
generally accepted in the United States of America. Because an audit is designed to provide reasonable, but not
absolute, assurance and because we did not perform a detailed examination of all transactions, there is a risk that
material misstatements may exist and not be detected by us.
In planning and parforming our audit, we considered the City's internal control over financial reporting in order to
determine our auditing procedures for the purpose of expressing our opinion on the fmancial statements and not to
provide assurance on the internal control over financial reporting. We also considered 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 and to test and report
on internal control over compliance in accordance with OMB Circular A-133.
As part of obtaining reasonable assurance about whether the City's financial statements are free of mater/al
misstatement, we performed tests of its compliance with certain provisions of laws, regulations, contracts and
grants, noncompliance with which could have a direct and mater/al effect on the determination of financial
statement amounts. However, providing an opinion on compliance with those provisions was not an objective of
our audit. Also, in accordance with OMB Circular A-133, we examined, on a test basis, evidence about the City's
compliance with the types of compliance requirements described in the U.S. Office of Management and Budget
(OMB) Circular A-133 Compliance Supplement applicable to each of its major federal programs for the purpose
of expressing an opinion on the City's compliance with those requirements. While our audit provides a reasonable
basis for our opinion, it does not provide a legal determination on the City's compliance with those requirements.
3999 Pennsylvania Ave. · Suite 100 · Dubuque, Iowa 52002.2639 · 563.556.1790 · Fax 563.557.7842
Offices in Arizona, Iowa, Minnesota, Montana, North Dakota and South Dakota · Equal Opportunity Employer
To the Honorable Mayor and Members of
the City Council
City of Dubuque
Page 2
Significant Accounting Policies
Management has the responsibility for selection and use of appropriate accounting policies. In accordance with
the tea'ms of our engagement letter, we will advise management about the appropriateness of accounting policies
and their application. The significant accounting policies used by the City of Dubuque, Iowa, are described in
Note 1 to the financial statements. For the year ended June 30, 2003, the City adopted Govemmentai Accounting
Standards Board Interpretation No. 6, Recognition and Measurement of Certain Liabilities and Expenditures in
Governmental Fund Financial Statements; Statement No. 34, Basic Financial Statements - and Management's
Discussion and Analysis for State and Local Governments; Statement No. 37, Basic Financial Statements - and
Management's Discussion and Analysis -for State and Local Governments: Omnibus; and Statement No. 38,
Certain Financial Statement Note Disclosures. Interpretation No. 6 mod/ties when compensated absence
liabilities are recorded under the modified accrual basis of accounting. Statements No. 34 and No. 37 establish
new £mancial reporting requirements for state and local governments. These statements create a new reporting
model which creates new information and restructures much of the information that governments have presented
in the past. Statement No. 38 modifies, establishes, and rescinds certain financial statement disclosure
requirements.
The statements now have an additional level of reporting, government-wide statements presented on the full
accrual basis of accounting, which have not been presented in the past. The genemI fixed assets and general long-
term debt of the City, which had previously been reported separately in account groups, are now reported as part
of the governmental activities in the government-wide presentation. The government-wide statement of activities
has a new focus in that it attempts to show whether the programs of the City are self-supporting or if they need to
be supported by the general revenues of the City.
The fond level statements have also been revised in that they no longer report aggregated totals for each fund
type, but rather present individual major funds of both the governmental type and business type, with all of the
non-major funds combined into one column. These statements also present a reconciliation between their totals
and the totals on the government-wide statements.
We noted no transactions entered into by the City during the year that were both significant and unusual, and of
which, under professional standards, we are required to inform you, or transactions for which there is a lack of
authoritative guidance or consensus.
Accounting Estimates
Accounting estimates are an integral par~ 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.
To the Honorable Mayor and Members of
the City Council
City of Dubuque
Page 3
Audit Adjustments
For purposes of this letter, professional standards define an audit adjustment as a proposed correction of the
financial statements that, in our judgmant, may not have been detected except tJu'ough our auditing procedures.
An audit adjustment may or may not indicate matters that could have a significant effect on the City's financial
reporting process (that is, cause future financial statements to be materially misstated). In our judgment, none of
the adjustments we proposed, whether recorded or unrecorded by the City, either individually or in the aggregate,
indicate matters that could have a significant effect on the City's financial reporting process.
Disagreements with Management
For purposes of this letter, professional standards define a disagreement with management as a matter, whether or
not resolved to our satisfaction, concerning a financial accounting, reporting, or auditing matter 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.
Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtainhag 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.
Issues Discussed Prior to Retention of Independent Auditors
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 om'
retention.
Difficulties Encountered in Performing the Audit
We encountered no diff~culties in dealing with management in performing and completing our audit.
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. Our observations indicate that overall financial operations of the City continue to be conducted in an
efficient and effective manner.
To the Honorable Mayor and Members of
the City Cotmcit
City of Dubuque
Page 4
This report, a public record by law, is intended solely for the information and use of the officials, cnnployees, and
citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque, Iowa, may report. 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.
Dubuque, Iowa
December 16, 2003
CITY OF DUBUQUE, IOWA
YEAR ENDED JUNE 30, 2003
OIHER 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 accrual/accrual basis of accounting. Eide Bailly LLP currently posts all
adjustments at year~end which are necessary to convert the City's cash-basis amounts to the mounts used in the
CAFR.
At this time, the City is preparing the worlcpapers needed to convert the accounting records to the modified
accrual/accrual basis at year-end. Eide Bailly LLP posts the journal entries and prepares the financial statements.
Although it may require increased staffing levels, we encourage the Finance Department to continue in their
advancement of converting to the modified accrual/accrual basis and preparation of the financial statements
required in the CAFR.
Policies and Procedures
We noted that the City is continuSng the process of developing a written manual of accounting policies and
procedures but that the manual is not complete at this time. A manual defining the roles and duties of employees
is complete, but the detailed accounting manual is hi process. Such a manual will assist the consistent application
of policies and procedures. The City should continue to develop the manual of accounting polices and procedures
and complete it as soon as possible.
Capital Assets
The City has a centralized custodian in the finance department who maintains a record of the City's capital assets,
including additions and deletions made during the year. During the fiscal year, the City adopted Governmental
Accounting Standards Board Statement No. 34. This statement increased the complexity of the capital assets by
requiring governmental infi'astmcture and depreciation on governmental capital assets be reported. Due to this
increased complexity, the City's capital assets records should be closely rev/ewed for errors by other staff with
knowledge of capital asset policies. The compilation and review of all of the City's capital asset records,
including department summaries, should be completed prior to the beginning of the October audit fieldwork.
GASB 39
The Governmental Accounting Standards Board has issued Statement No. 39, Determining Whether Certain
Organizations are Component Units which will be effective for the City for the fiscal year ending June 30, 2004.
This statement provides additional guidance to determine whether certain organizations for which the City is not
financially accountable should be reported as component units based on the nature and significance o£ their
relationship with the City. Generally, it requires reporting, as a component un/t, an organization that raises and
holds economic resources for the direct benefit of a governmental unit.
GASB 40
The Governmental Accounting Standards Board has issued Statement No. 40, Deposit and Investment Risk
Disclosures which will be effective for the City for the fiscal year ending June 30, 2005. This statement addresses
common deposit and investment risks related to credit risk, concentration of credit risk, interest rote risk, and
foreign currency risk.
CITY OF
DUBUQUE, IOWA
For the Fiscal Year
ending June 30, 2003
CITY OF DUBUQUE, IOWA
Comprehensive Annual
Financial Report
For the fiscal year ended
June 30, 2003
Prepared by:
Department of Finance
INTRODUCTORY SECTION
CITY OF DUBUQUE, IOWA
Table of Contents
INIRODUCTORY SECTION
Table of Contents
Letter of Transmittal
City Organizational Chart
Officials
Certificate of Ach/evement for Excellence in Financial Reporting
FINANCIAL SECTION
Independent Auditor's Report
Management's Discussion and Analysis
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets
Statement of Activities
Fund Financial Statements
Balance Sheet - Governmental Funds
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Asscts
Statement of Revenues, Expenditures, and Changes in Fund
Balances - Governmental Funds
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities
Statement of Net Assets - Proprietary Funds
Statement of Revenues, Expenses, and Changes in Fund Net Assets -
Proprietary Funds
Statement of Cash Flows - Proprietary Funds
Notes to Financial Statements
Required Supplementary Information
Schedules of Revenues, Expenditures, and Changes in Fund Balances -
Budget and Actual - Budgetary Basis General Fund
Employee Benefits Special Revenue Fund
Community Development Special Revenue F?nd
Notes to Required Supplementary Information - Budgetary Reporting
Combining Fund Statements
Combining Balance Sheet - Nonmajor Governmental Funds
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances -Nonmaj or Goverrunental Funds
Combining Statement of Net Assets - Nonmajor Enterprise Funds
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets - Nonmajor Enterprise Funds
Combining Statement of Cash Flows - Nonmajor Enterprise Funds
Combining Statement of Net Assets - Internal Service Funds
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets - Intmmal Service Funds
Combining Statement of Cash Flows - Internal Service Funds
Exhibit
1
2
3
'3-i
4
4-1
5
6
7
A-1
A-2
B-1
B-2
B-3
C-1
C-2
C-3
Page
1-2
3-12
13
14
15
16-17
18-25
26
27
28
29
30
31
32-33
34
35-36
37-61
62
63
64
65-66
67-68
69-70
7I
72
73-74
75
76
77478
CITY OF DUBUQUE, IOWA
Table of Contents
STATISTICAL SECTION (Unaudited)
Government-wide Information
Government-wide Expenses by Function
Government-wide Revenues
Fund Information
General Governmental Expenditures by Function
G~neral Govermnental Revenues by Source
General Governmental Tax Revenues by Source
Property Tax Levies and Collectio~s
Assessed and Estimated Actual Value of Property
Property Tax Rates - Direct and Overlapping Governments
Principal Taxpayers
Special Assessment Billings and Collections
Computation of Legal Debt Margin
Ratio of Net General Obligation Bonded Debt to Assessed
Value and Net General Obligation Bonded Debt Per Capita
Ratio of Amaual Debt Service Expenditures for General Obligation
Bonded Debt to Total General Governmental Expenditures
Computation of Direct and Overlapping Bonded Debt - General
Obligation Bonds
Revenue Bond Coverage - Parking Bonds
Property Value, Construction Permits, and Bank Deposits
Demographic Statistics
Schedule of Insurance in Force
Miscellaneous Statistics
COMPLIANCE SECTION
Report on Compliance and on Internal Control over Financial Reporting
Based on an Audit of Financial Statements Performed in Accordance
with Government Auditing Standards
Report on Compliance with Requirements Applicable to Each Major
Program and Internal Control Over Compliance in Accordance with
OMB Circular A-t 33
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Find'rags and Questioned Costs
Table
3
4
4A
5
6
7
8
9
10
11
'12
13
14
15
16
17
18
Page
79
8O
8t
82
83
84
85
86
87
88
89
90
91
92
93
94
95
96-97
98
99-i00
101-102
103-105
106
I07-109
2
Finance Department
50 West 13th Street
Dubuque, Iowa 520014864
December 16, 2003
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, 2003, is hereby submitted. Responsibility for both the accuracy of the
data and the completeness and fairness of the presentation, including all disclosures, rests with
the City. To the best of our knowledge and belief, the enclosed data is accurate in all material
respects, and is reported in a manner designed to present fairly the financial position and results
of operations of the various funds and account groups of the City. All disclosures necessary to
enable the reader to gain an understanding of the City's financial activities have been included.
The CAFR is presented in four sections: Introductory Section, Financial Section, Statistical
Section and Compliance Section. The Introductory Section includes this transmittal letter, the
City's organizational chart, the list of principal officials, a Certificate of Achievement for
Excellence in Financial Reporting from the Governmental Finance Officers Association of the
United States and Canada and a table of contents. The Financial Section includes the
independent auditor's report, management's discussion and analysis, the basic financial
statements, required supplementary information and other supplementary information. The
Statistical Section includes unaudited financial and demographic information, generally
presented on a multi-year basis.
The City is required to undergo 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
fmancial reporting and compliance with requirements applicable to laws, regulations, contracts,
and grants, are included in the Compliance Section of this report.
This report includes all funds of the City of Dubuque, as well as its component unit. Component
units are legally separate entities for which the City of Dubuque is financially accountable. The
City provides a full range of services including; police and fnce 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, parking facilities,
refuse collection, and public transportation. Beginning with the 2001 fiscal year, the City is
required by its Vision Iowa contract to report its America's River Project funds as a separate
Service People Integrity Responsibility Innovation Teamwork
enterprise fund. Also, the governing body is financially accountable for the operations of the
Dubuque Library Board, Airport Commission, Civic Center Commission, Cable TV
Commission, Transit Board, and the Park and Recreation Commission. These activities are not
legally separate entities, and therefore are included in the reporting entity.
This report includes the Dubuque Metropolitan Area Solid Waste Agency (DMASWA) as a
discretely presented component unit. The discretely presented component unit is reported in a
separate column in the government-wide financial statements to emphasize that it is legally
separate from the City of Dubuque and to differentiate its financial position and results of
operations fi.om those of the City. The City of Dubuque appoints a voting majority to the
DMASWA governing board and operates the landfill.
Generally Accepted Accotmting Principals (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 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.
ECONOMIC CONDITION AND OUTLOOK
The City of Dubuque is located on the Mississippi River in northeast Iowa, adjacent to the states
of Illinois and Wisconsin. The City was founded by Julien Dubuque in 1785 and is the oldest
City in Iowa. The City of Dubuque has a unique combination of the old and new, ranging from
cable cars, Victorian architecture, and a Civil War shot tower, to an enclosed shopping mai1,
riverboat casino, and a pari-mutuel dog track with a slot machine casino. Dubuque has a stable
and diversified manufacturing base and is the major tri-state retail center. Employment growth
was strong throughout the year, as Dubuque ended the fiscal year with an unemployment rate of
approximately 3.7 percent. The City of Dubuque currently has a land area of 28 square miles and
a population of 57,686. As the largest City in the tri-state area, Dubuque serves as the hub of a
trade area with a population estimated at 250,000.
The City of Dubuque is empowered to levy a property tax on real property located within the
City limits. The City has operated under a council-manager form of government since 1920.
Policymaking and legislative authorities are vested in the governing council, which consists of a
mayor and a six-member council. The governing council is responsible for, among other things,
passing ordinances, adopting the budget, appointing committees, and hiring the City Manager,
Corporate Counsel, and City Clerk. The City Manager is responsible for overseeing the day-to-
day operations of the government, and for appointing the heads of the government's
departments. The council is elected on a non-partisan basis. Council members are elected to
four-year staggered terms with tkree council members elected every two years. The mayor is
elected to a four-year term. Four of the council members are elected within their respective
wards; the mayor and the two remaining council members are elected at large.
Development of Dubuque Industrial Center West continues. The first phase of the 550-acre
development of City owned land made 135 acres available for medium to heavy industrial uses.
Dubuque Area Industrial Development Corporation continues to market to developers its 40,000
4
square foot speculative industrial building located on twelve acres of Dubuque Industrial Center
West, now being partially leased by DDI, Inc. The McGraw-Hill Company completed a 330,000
square foot warehouse and distribution center at Dubuque Industrial Center West last year. Also,
the sale of 17 acres to Alliant Energy for a new operations facility is complete with construction
slated for 2004. Giese Manufacturing completed construction of a 30,000 square foot
manufacturing facility on a 5-acre site. Construction recently began on the Adams Company
Manufacturing facility. The John G. Bergfeld Recreation Area provides recreation oppommity
for employees who work in the park, as well as the public. Dubuque Industrial Center West
complements the city-owned, 100-acre Dubuque Technology Park that has four occupants:
Advanced Data-Comm, Cartegraph, Integreat, and McLeod USA.
Eagle Window & Door completed construction of a new 400,000 square foot manufacturing
facility in the Kerper Boulevard industrial area, and moved into the facility in December 2000.
This $17,000,000 project added 168 employees. Flynn Ready Mix constructed a new state-of-
the-art facility on Kerper Court in 2002. CIGNA celebrated its grand opening in June 2001
following completion of a new 115,000 square foot office building in downtown Dubuque.
SISCO, a Dubuque based third party insurance administrator, renovated the historic Town Clock
Building adjacent to their downtown Dubuque facility. The renovation provides SISCO the
potential to house another 100 employees.
Other downtown development includes the construction of the three-story Harbor View Building
at 300 Main Street. The building is home to the Chamber of Commerce and the Greater Dubuque
Development Corporation and offers additional office space for lease. The $2.5 million
renovation of the basement, first and second floors of the Cooper Wagon Works building
(Bricktown) at Third and Main Street is complete. The building houses a restaurant, lounge, and
banquet facilities. The Iowa Inn, former downtown YMCA, located at 9th and Iowa Street, has
recently completed a $3.3 million renovation to convert to 33 units for low-income senior
housing. Pepper Sprout Restaurant offers gourmet dining in a renovated historic building in the
Old Main District. Caf~ Manna Java is a bakery and coffee shop serving light lunch and dinner.
The Weber Paper building is being remodeled to house Shepherd Publishing, which will bring 70
jobs to downtown Dubuque.
On Dubuque's west side, development of 330,000 square feet of retail space in Asbury Plaza
began in July 2001. The plaza encompasses 190 acres and is anchored by Hy-Vee Food Store.
During the past year Hallmark, Michael's, Old Navy, Bed, Bath & Beyond, Dress Barn, Famous
Footwear, Pier One, Petco, Sally Beauty, EB Games and Next Generation Wireless were added
to the Asbury Plaza. It has been announced that Kohl's Department Store will open in late 2004.
Menards relocated to a new 162,340 square foot retail facility on the west side in May 2002,
with Hobby Lobby taking over its old facility.
With the recent economic growth, the City has annexed almost 3000 acres since 1995. In
contrast, only 40 acres were annexed in the first half of the 1990's. Another 700-acre annexation
is awaiting state approval. This is consistent with the non-residential construction numbers in
the community. From 1990-1997 the City averaged 300,000 square feet of non-residential
construction per year. In the five years from 1998-2002, the City has averaged almost 1,000,000
square feet of non-residential construction.
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the Mayor and
City Council, Ixas 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.
Downtown revitalization continued as a high priority of City Council, with programs such as the
Downtown Rehabilitation Loan Program and Facade Grant Program providing incentives for
property improvement in the downtown area. The opening of Eighth Street to traffic through the
plaza was the first phase of a multi-million-dollar update of the Town Clock Plaza to meet the
current development and functional needs of the downtown. The second phase was to open the
Town Clock Plaza from Fifth to Eighth Street to vehicle traffic, which was completed and
opened to traffic on August 2, 2002. The balance of the reconstruction of the Town Clock Plaza
is budgeted in the City's 5-year Capital Improvement Program. The City continued
implementation of major parking expansion to meet the increased parking demand in the
downtown area. Included in the expansion was a three-level, 240-space addition to the existing
parking ramp at Fifth and Iowa Street, and construction ora new 400 space parking ramp facility
at Third and Iowa Street, which opened in June 2002. The City also sponsored a downtown
visioning process in conjunction with state and local partners. The next phase of this process is a
comprehensive planning process for the downtown, which is currently underway.
Construction for the last phase of the Northwest Arterial, from JFK Road to U.S. 52, was
completed in September 2002. Grading for this project took place in 2001, and paving in 2002.
The road was opened to traffic on September 13, 2002.
American Airlines has maintained service in Dubuque following the tragic events ofg-11. In the
past year the airline industry has undergone major economic losses causing them to cut flights to
cities large and small. The Dubuque Regional Airport was down only 3.38% in calendar year
2001 for a total of 56,353 passengers. The Dubuque Regional Airport has recently taken a
proactive approach by embarking on a vigorous marketing campaign designed to awaken the
community to the need to retain air service with FLYDBQ campaign. United Express and
Northwest Airline have both discontinued commemial service to the airport.
The Dubuque Regional Airport celebrated the conversion of Runway 18/36 to a primary runway
during the fall of 2002 with a ribbon cutting ceremony. This new primary runway should greatly
reduce weather related flight cancellations.
The Terminal Area Study was concluded in March 2003. The object of the report was to define
the long-term air service facility needs at the Dubuque Regional Airport including a
comprehensive study of the existing terminal building and future expansion and relocation
options. Airport staff is currently working on two new airport improvement level projects,
updating the Airport Master Plan and a Benefit Cost Analysis / Environmental assessment.
Taxiway Charlie and Delta Rehabilitation Project was completed in the spring 2003. The project
included a pavement overlay ofTaxiway Charlie and new taxiway lights for Charlie and Delta.
Due to on-going operational problems, replacement of taxiway Alpha NW lights was added to
the project.
The DeparWaent of Transportation passed a bill called the Small Community Air Service
Development Pilot Program Grant. This bill has $20 million that will be dispersed to thirty-five
communities across the United States. The Dubuque Regional Airport, being one of the chosen
communities, will receive approximately $610, 000 with additional travel bank pledge dollars.
The Airport has two main goals for the grant; the first is to maintain the current level of service
in the tri-state region with American Eagle. The second goal is to utilize the remaining dollars to
expand air service by adding more frequencies and/or access another hub.
The City is currently served by one major commuter airline, American Eagle, with three daily
round trips to Chicago. American Eagle continues to fly 50 passenger seat regional jets. As of
September 2003, revenue passenger enplanements are at 29,136, somewhat lower than 2002
figures. The airport has two on-demand charter services available on the field with a variety of
aircraft. Customers have numerous options and destinations to choose from to suit their traveling
needs.
In October 2003, The Dubuque Regional Airport received its 13t~ consecutive year of a perfect
FAA Part 139 inspection compliance. Dubuque is the only airport in the nation to currently hold
this record.
Implementation of the City Council's Neighborhood Reinvestment Strategy provided many
'quality of life' improvements for City residents. The Community Oriented Policing Program
expanded to include other City Departments in landlord/tenant training and building code
enforcement. Dubuque is one of the safest places to live in the Midwest, and 15 police officer
positions have been added since 1994 to implement new programs and enhance police coverage.
The Housing and Community Development Department continued housing rehabilitation efforts
including various home ownership initiatives. During the past fiscal year, 23 families were
assisted in purchasing their first home through use of Community Development Block Grant
(CDBG) funds. Housing rehabilitation assistance included $1.2 million in grants to remove lead
paint hazards in single and multi-family housing units. Through loans of $110,524 in CDBG
funds, 13 rental units were rehabilitated. In total, the Housing and Community Development
Department invested more than $2.5 million in homeowner and rental housing projects, matched
by $2.2 million in private investment. Neighborhood park development included the installation
of new play units in several neighborhood parks during the year. Seven million dollars has been
invested in the park system over a five-year period.
The City's ambitious riverfront development continued to move forward as planned during the
year and was awarded $40 million (with $20 m/Ilion going to the City) from the State of Iowa
Vision Iowa program. The America's River project is a public/private partnership between the
City of Dubuque, the Dubuque County Historical Society, the Dubuque Area Chamber of
Commerce, and Dubuque County, to carry out a comprehensive $188 million fiverfront
development in the Port of Dubuque. This area already includes historic sites, such as a Civil
War Shot Tower, the William M. Black steamboat, Mississippi River Museum, Dubuque Star
Brewery, and the Ice Harbor. Recent progress on fiverfront development included the following:
7
Port of Dubuque Master Plan
A strategic plan for the Port of Dubuque with land uses, economic analyses, and
design standards was adopted in 2002.
Mississippi River Discovery Center and Aquarium-opened June 2003
The River Discovery Center and Aquarium is a world-class national museum for
the entire Mississippi River. The Center includes 15 aquariums, including five that
measure 30 feet across. A dynamic immersion theater surrounds visitors with the
story of the Mississippi River's creation, its floods, its history, and its underwater
life. An outdoor wetland features natural and living history with floating
laboratories and classrooms. Stream tables let visitors create their own rivers, and
the educational overnight program will let visitors sleep on a "Boat and Breakfast"
on a National Historic Landmark steamboat.
Heritage Trail Riverfront System-mostly completed
Two and one-half miles of an 18-mile extension of the Heritage Bike Trail from the
north end of Dubuque through downtown, to the Mines of Spain State Recmatian
Area were recently completed, with the opening of the North End Neighborhood
Trail and the Heron Pond Wetlands Nature Trail. Construction is proceeding on 13
miles of additional off-road and on-street segments of the trail extension. When
completed, Heritage Trail Riverfront System, with links to riverfront parks and the
Port of Dubuque, will create a major recreational system.
River's Edge Plaza-opened in 2002
Construction was completed on a 5,000 square foot plaza outside the floodwall gate
at the historic Ice Harbor. This plaza serves as the City's riverfront gateway, as well
as a landing for large steamboats.
Mississippi Riverwalk-opened in 2003
The City acquired a riverfront property on the 4th Street Peninsula for construction
of a one-third mile Riverwalk. This 15-foot wide promenade was completed during
the fiscal year. The walk includes benches, historic lighting, shade structures, and
casqading Stairs to the river.
Grand Harbor Resort and Waterpark-opened November 2002
' A 196-room seven-story hotel, and a 24,000 square foot indoor water park were
opened.
Grand River Center-opened October 2003
A }15,000 square foot education and conference center had a ribbon cutting. The
City's share of State Vision Iowa funds was utilized for the center and related
public improvements.
Star Brewery Building-S6.5 renovation under negotiation
A proposal for a mixed-use complex was received in November 2002 for the
renovation and reuse of the 40,000 square foot historic building. Plans and
financing have not been finalized for the project.
The $188 million America's River Project is fully funded with all the large components
completed and others under construction. The Port of Dubuque has an additional 60 acres
available for private development. The City has acquired additional property and is relocating
existing property owners to assemble into new development parcels for private development
based on the adopted Port of Dubuque Master Plan. The new plan guides the redevelopment in
the downtown rivert~ont area. A consultant study indicates that another $150 million in private
development can be expected.
For the Future. The Mayor and City Council will continue to take action to achieve their goals
of maintaining a strong local economy, sustaining stable property tax levies, and enhancing the
safety and security of citizens through neighborhood vitality. The City staff will work to
implement the City Council's vision that Dubuque is a "Masterpiece on the Mississippi." A
program of comprehensive Service reviews has continued as a vehicle for analyzing City
services, identifying opportunities for improvement, and determining areas of possible cost
reductions. The goal of the service review program is to ensure that services desired by the
citizens are provided in the most cost effective and efficient method possible. The City Council's
goals for the next five years and beyond include the following:
Improved connectivity: transportation and telecommunications
· Planned and managed growth
· Diverse, strong Dubuque economy
· Riverfront developed
· Partnering for a better Dubuque
Specific programs are being implemented by City staff to meet the City Council's five-year
goals. Some of the most significant programs include:
· Riverfront Development - The City has partnered with several other agencies to enhance
one of Dubuque's greatest treasures, the Mississippi riverfront area. A $188 million
comprehensive plan for riverfront improvements has been developed, with completion
scheduled by June 2005. Redevelopment is guided by the Port of Dubuque Master Plan.
· Industrial Park Development - The City has acquired over 900 acres of industrial land and
has completed the first phase of construction for these industrial parks. City staff and the
Greater Dubuque Development Corporation are working to attract new businesses and
meet the expansion needs of current businesses. The GDDC recently completed a $2.3
million fundralsing campaign to support their operations.
· Neighborhood Reinvestment - The highly successful Community Oriented Policing and
Uptown Recreation programs will continue. Work will continue on neighborhood
empowerment programs including property management and tenant training. The City
Street, Historic Preservation and Housing programs are also being expanded to affect
quality of life improvements at the neighborhood level.
Downtown Redevelopment - Dubuque's downtown, situated between the Mississippi
River and tall Wee-lined bluffs, is the home to many unique and historic buildings as well
as being the center of commerce and tourism. The City Council adopted Vision Downtown,
a community consensus for the future of Downtown Dubuque, in December 2001. Several
initiatives with other public and private organizations have been completed for the
downtown areas, including improvements to Flat Iron Park, continued reconstruction of
Town Clock Plaza, and a master plan for the Five Flags Civic Center. The Downtown
Master Plan is currently being developed.
· Transportation Improvements - The City will maintain its aggressive program to improve
local streets. Plans are in place to reconstruct or overlay sixty miles of streets over the next
five years. In a sixteen-year period from 1990-2006, the City will have completed sixty-
nine percent of the streets. All of the traffic signals along U.S. 20 will be interconnected
by 2004 to improve traffic flow and lessen travel delays. Other new roadway connections,
such as a new connection off University Avenue to U.S. 20 will be constructed. The
schedule for this phase is yet to be determined. U.S. 20 will be widened to five lanes from
the Northwest Arterial to old U.S. 20 in 2004 to improve safety. Corridor studies will be
completed for the Southwest Arterial and the Julien Dubuque Bridge four-lane
replacement. Plans are also in place to expand U.S. Highway 15 I, providing Dubuque with
a four-lane link to Madison, Wisconsin, and Cedar Rapids, Iowa, by 2004. The four-lanes
of U.S. Highway 20 from Dubuque to Fort Dodge, Iowa was completed in 2003. U.S.
Highway 61 was opened as a four-lane from Dubuque to Davenport, Iowa in 1999. The
four-lane of U.S. Highway 218 from Waterloo, Iowa to Mason City, Iowa connects to U.S.
Highway 20 and opened in2003. The City, in partnership with local stakeholders, also will
implement a comprehensive way finding signage program throughout the City with IDOT
support.
All of this is being done while the City maintains fiscal integrity. Through efficient operation,
revenue diversification, and debt reduction, the City has not increased the average homeowners
property taxes in nine years.
These are a few of the many activities being addressed by the community, City Council, and City
staff to improve the quality of life in Dubuque.
FINANCIAL INFORMATION
Internal Control. 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 fmancial
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.
10
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, 2003, 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
appropriated budget. The level of budgetary control (that is the level at which expenditures
cannot legally exceed the appropriated amount) is established by function. The government also
maintains an encumbrance accounting system as one technique for accomplishing budgetary
control. Encumbered amounts lapse at year-end, however, encumbrances generally are re-
appropriated as part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this report,
the city continues to meet its responsibility for sound financial management.
Cash Management. Cash temporarily idle during the year was invested in demand deposits,
certificates of deposit, repurchase agreements, U.S. Treasury securities, federal agency
obligations, and authorized mutual funds. The City recorded investment earnings of $1,962,308
for the year.
The investment policy adopted by the City Council stresses the importance of capital
preservation. The policy directives intend to minimize credit and market risks while maintaining
a competitive yield on the portfolio. Accordingly, deposits were either covered by federal
depository insurance or collateralized. 'All collateral on uninsured deposits was held either by the
State Treasurer, the government, its agent, or a financial institution's trust department in the
government's name. All of the investments subject to risk categorization were classified in the
category of lowest credit risk as defined by the Governmental Accounting Standards Board. The
non-classified investments include mutual funds.
Risk Management. The City of Dubuque is a member of a statewide risk pool for local
governments, the Iowa Communities Assurance Pool. The coverage for general and auto
liability, as well as public official and police professional liability are acquired through this
agency. Worker's compensation coverage up to $400,000 for each accident is provided through
self-insurance. The accumulated reserve provision for such claims equaled $516,678 as of June
30, 2003. The City has also established self-insurance plans for medical, dental, prescription
drug, and short-term disability. The accumulated reserve provision for such claims equaled
$108,976 as of June 30, 2003. All self-insured health plans are certified as actuarially sound and
certificates of compliance have been filed with the State of Iowa.
11
OTHER INFORMATION
Independent Audit. State Code requires an annual audit by independent certified public
accountants or the State Auditor. The accounting firm ofEide Bailly LLP conducted the audit for
fiscal year 2003. In addition to meeting the requirements set forth in state statutes, the audit also
was designed to meet the requirements of OMB Circular A-133, Audits of States, Local
Governments, and Non-Profit Organizations. The independent auditor's report on the basic
financial statements and combining fund statements is included in the Financial Section of this
report. The auditor's report related specifically to the single audit is included in the Compliance
Section.
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, 2002. This was the 15th consecutive year that the government has achieved this prestigious
award. In order to be awarded a Certificate of Achievement, a government unit must publish an
easily readable and efficiently organized comprehensive annual financial report. This report must
satisfy both generally accepted accounting principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual fmancial 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.
Acknowledgments. We compliment the staff of the Finance Department for their assistance in
preparing this report. We also commend the Mayor and City Council and all department and
division managers for their interest and support in planning and conducting the financial
operations of the City of Dubuque in a responsible and progressive manner. We also thank the
independent certified public accountants, Eide Bailly LLP, whose competent assistance and
technical expertise have enabled the production of this report.
Sincerely,
Michael C. Van Milligen
City Manager
Kenneth J. TeKippe, CPA
Finance Director
12
CITY OF DUBUQUE ORGANIZATIONAL CHART
Corporation Counsel
Library
Assistant City Manager
Human Resources
CITY COUNCIL
CITY MANAGER
City Clerk
Airport
Public Information Ofricer
Neighborhood Development
Administrative
Services
Manager
Budget
Cable TV
Emergency
Communications
Building
Services
Department
Economic
Development
Department
Parkhtg System
Transit Division
Finance
Department
Leisure Services
Department
Civic Center
Park
Recreation
Operations &
Maintenance
Department
I
Planning
Services
Department
Fire Health Housing & Human Information
Department Services Community Rights Services
Department Development Department Department
Emergency Department
Management
I I I I
Police Public Works/ Water Water Pollution
Department Engineering Department Control
Department Department
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2003
CITY COUNCIL
Terrance M. Duggan
Daniel E. Nicholson
Ann E. Michalski
John H. Markham
Roy D. BuoI
Joyce E. Cormors
Patricia A. Cline
Mayor
Council Member - At Large
Council Member - At Large
Council Member- 1st Ward
Council Member - 2~d Ward
Council Member - 3~d Ward
Council Member- 4t~ Ward
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
William G. Blum
James A. O'Brien
Jeamae F. Schneider
City Manager
Corporation Counsel
City Solicitor
Assistant City Attorney
City Clerk
DEPARTMENT MANAGERS
Pauline J. Joyce
Andrew D. Perry
Cynthia M. Steinhauser
Richard R. Russell
William J. Baum
Kenneth J. TeKippe
E. Daniel Brown
Mary Rose Corrigan
David W. Hairis, Jr.
Kelly R. Larson
Randall K. Peck
Christine A. Kohlmann
Gil D. Spence
Susan A. Henricks
Donald J. Vogt
Laura B. Carstens
Kim B. Wadding
Michael A. Koch
Robert M. Green
Paul J. Horsfall
Administrative Services Manager
Airport Manager
Assistant City Manager
Building Services Manager
Economic Development Director
Finance Director
Fire Cb2ef
Health Services Manager
Housing and Community Development Manager
Human Rights Director
Personnel Manager
Information Services Manager
Leisure Services Manager
Library Director
Operations & Maintenance Manager
Planning Services Manager
Police Chief
Public Works Director/Engineering Division
Water Department Manager
Water Pollution Control Plant Manager
14
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque,
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2002
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 (CAFRs) achieve the highest
standards in government accounting
and financial reporting.
President
Executive Director
15
FINANCIAL SECTION
EideBailly=,
Consultants · Certified Public Accountants
INDEPENDENT AUDITOR'S REPORT
To the Honomble Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the accompanying financial statements of the govern_mental activities, the business-type
activities, the discretely presented component-unit, each major fund, end the aggregate remaining fund
information of the City of Dubuque, Iowa, as o£and for the year ended June 30, 2003, wh/ch collectively
comprise the City's basic financial statements as listed in the table of contents. These financial statements
are the responsibility of the management of the City of Dubuque, Iowa. Our responsibility is to express an
opinion on these fmancial statements based on our audit.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America; Chapter 11 of the Code of Iowa; and the standards applicable to financial audits contained in
Government Auditing Standards, issued by the Comptroller Genemt of the United States. Those standards
and provisions require that we plan and perform the audit to obtain reasonable assurance about whether
the financial statements are flee of material misstatement. An audit includes examinJmg, on a test basis,
evidence supporting the mounts and disclosures in the financial statements. An audit also includes
assessing the accounting principles used and significant estimates made by management, as well as
evaluating the overall financial statement presentation. We believe that our audit provides a reasonable
basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the discretely
presented component unit, each major fund, and the aggregate remaining fund information of the City of
Dubuque, Iowa, as of Jane 30, 2003, and the respective changes in fmancial position and cash flows,
where applicable, thereof for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
As described in Note 14, the City has implemented a new financial reporting model, as required by the
provisions of GASB Statement No. 34, Basic Financial Statements - and Management's Discussion and
Analysis -for State and Local Governments, as of June 30, 2003.
Irt accordance with Government Auditing Standards, we have also issued our report dated December 16,
2003, on our consideration of the City's intemaI control over financial reporting and our tests of its
compliance with certain provisions of laws, regulations, contracts, and grants. That report is an integral
part of an audit performed in accordance with Government Auditing Standards and should be read in
conjunction with this report in considering the results of our audit.
3999 Pennsylvania Ave. · Suite '100 ° Dubuque, Iowa 52002-2639 · 563.556.1790 ° Fax 563.557.7842
Offices in Arizona, Iowa, Minnesota. Montana, North Dakota and South Dakota · Equal OppormniU Employer
16
The management's discussion and analysis and budgetary comparison information, listed in the table of
contents are not a requ/red part of the basic financial statements but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, wi'rich consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming an opinion on the fmancial statements that
collectively comprise the basic financial statements of the City of Dubuque, Iowa. The introductory
section, combining nonmajor fund financial statements, statistical tables, and the Schedule of
Expenditures of Federal Awards required by the U.S. Office of Management and Budget (OMB) Circular
A-133 are presented for purposes of additional analysis and are not a required part of the basic financial
statements. The combining nonmajor land financial statements and the Schedule of Expenditures of
Federal Awards have been subjected to the auditing procedures applied in the audit of the basic f'mancial
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 section and statistical tables have not been subjected to the
auditing procedures applied in the audit of the basic financial statements and, accordingly, we express no
opinion on them.
Dubuque, Iowa
December 16, 2003
17
CITY OF DUBUQUE
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2003
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,
2003. 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 HIGHI,IGHTS
· The assets of the City of Dubuque exceeded its liabilities at the close of the fiscal
year by $359,170,765 (net assets). Th/s was an increase of $19,808,619 over net
assets at June 30, 2002. Unrestricted net assets at June 30, 2003 in the amount of
$17,837,445 may be used to meet the City's ongoing obligations to citizens and
creditors.
· The revenues of the general fund exceeded expenses by $470,195.
· The ending general fund balance was $16,792,510.
· Within the City's business-type activities, revenues and transfers exceeded
expenses by $18,374,650.
· For the year, the revenues of the City's governmental activities exceeded
expenses and transfers by $1,433,969.
· The City's debt decreased by $155,390 due to principal repayments exceeding the
issuance of new debt.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements consist of government-wide financial statements,
fund f'mancial statements, and notes to the financial statements. This discussion and
analysis are intended to serve as an introduction to the basic fmancial statements. This
report also contains other supplementary information in addition to the basic financial
statements themselves.
Due to the City's implementing Governmental Accounting Standards Board Statement
Number 34 in 2003, comparative data is not available for a comprehensive discussion of
the City's change in net assets. However, a comparative analysis of government-wide
data will be presented in future years.
Government-wide financial statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City's finances, in a manner similar to private-sector business. The
paragraphs below provide a brief description of the government-wide financial
statements.
18
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
consider additional non-financial factors such as changes in the City's property tax base
and the condition of the City's infi-astructure.
The statement of activities presents information showing how the City's net assets
changed during the most recent fiscal year. All changes in net assets are reported as soon
as the underlying event giving rise to the change occurs, regardless of the timing of
related cash flows. Thus, revenues and expenses are reported in this statement for some
items that will result in cash flows in future fiscal periods such as uncollected taxes and
earned but unused vacation leave.
The government-wide financial statements include not only the City itself (known as the
primary government), but also one other legally separate entity, the Dubuque
Metropolitan Area Solid Waste Agency, for which the City of Dubuque is considered
financially accountable. Financial information for the Agency is reported separately from
the financial information presented for the primary government. The Dubuque
Metropolitan Area Solid Waste Agency issues separate financial statements.
The government-wide financial statements are divided into two categories:
Governmental activities. Th/s category consists of services provided by the City that are
principally supported by taxes and intergovernmental revenues. Basic City services such
as police, tim, public works, planning, parks, the library, and general administration are
governmental activities.
Business-rgpe activities. These activities are supported primarily by user fees. The
services provided the City in this category include water, sewer, refuse, parking, transit
and America's River Project.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City uses fund accounting
to ensure and demonstrate compliance with legal requirements for financial transactions
and reporting. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal
19
year. Such information may be useful in evaluating a government's near-term financial
requirements.
Because the focus of governmental funds is narrower than that of the government-wide
financial statements, it is useful to compare the information presented for governmental
funds with similar information presented for governmental activities in the government-
wide financial statements. By doing so, readers may better understand the long-term
impact of the City's near term financial decisions. Both the governmental fund balance
sheet and governmental fund statement of revenues, expenditures, and changes in fund
balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
The City maintains three individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund,
employee benefits fund, and community development fund, all of which are considered to
be major funds. Data from the other seventeen governmental funds are combined into a
single, aggregated presentation. Individual fund data for each of these non-major
governmental funds is provided in the form of combining statements elsewhere in this
report.
The City legally adopts an annual budget by function. A budgetary comparison schedule
for the general, employee benefits, and community development funds has been
provided.
Proprietary funds. The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprises fimds to
account for its sewer, water, and refuse utilities. Enterprise funds are also used for transit,
parking, and America's River Project. Internal service funds are accounting devices used
to accumulate and allocate costs internally among the City's various functions. The City
uses internal service funds to account for its general/engineering service, garage service,
stores/printing, health insurance, and workers' compensation. The City's internal service
funds predominately benefit the governmental activities and have been included in the
govemmentai activities in the government-wide financial statements.
Fiduciary Funds. Fiduciary funds are used to account for resources held for the benefit
of parties outside the government. Fiduciary funds are not reflected in the government-
wide financial statements because the resources of those funds are not available to
support the City's own programs. The accounting used for fiduciary funds is much like
that used for proprietary funds. The City has no fiduciary funds during fiscal year 2003.
Notes to the financial statements. The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements.
20
Other information. The combining statements referred to earlier in connection with non-
major governmental funds, non-major enterprise funds, and internal service funds 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 $359,170,765 at the close of the most recent fiscal year.
The largest part of the City's net assets (86.7%) reflects it's investment in capital assets
such as land, buildings, infrastructure, machinery, and equipment less any related debt
used to acquire those assets that are still outstanding. These capital assets are used to
provide services to the citizens and are not available for future spending.
CITY OF DUBUQUE'S NET ASSETS
Governmental Type
Activities Activities
2003 2003
Total
Currant and Other Assets $ 69,832,586 $ I2,398,014 $ 82,230,600
Capital Assets 230,511,I51 104,475,331 334,986,482
TotaI Assets 300,343,737 116,873,345 417,217,082
Long-term Liabilities 38,517,320 6,475,I07 44,992,427
Other Liabilities 8,224,246 4,829,644 13,053,890
Total Liabilities ' 46,741,566 I 1,304,751 58,046,317
Net Assets:
Invested in Capital Assets,
Net of Reiated Debt 212,767,403 98,706,116 311,473,519
Restricted 29,306,125 553,677 29,859,802
UnreshScted 11,528,643 6,308,801 17,837,444
Total Net Assets $ 253,602,171 $105,568,594 $ 359,170,765
A portion of the City's net assets (8.3%) represents resources that are subject to external
restrictions on how they may be used. The remaining balance of net assets (5.0%) may be
used to meet the City's ongoing obligations to citizens and creditors.
At the close of fiscal year 2003, the City is able to report positive balances in all three
categories of net assets, both for the government as a whole and separate governmental
and business,type activities.
Governmental activities. Governmental activities increased the net assets of the City by
$1,433,969 or 7.2% of the total increase in net assets in 2003. Taxes are the largest source
of governmental revenues with property taxes of $18,041,049 in 2003. Other
21
governmental revenues included gaming of $9,539,598, local option sales taxes of
$6,492,203 and hotel/motel tax of $970,232.
Governmental expenses during 2003 totaled 53,702,231. The largest programs were
public safety of $15,817,052, public works of $14,453,558, and community and
economic development of $9,431,702. The State of Iowa changed the reporting
requirements for expenses fi:om four programs to eight fimctions effective with the 2003
fiscal year.
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET ASSETS
Program revenues:
Charges for services
Operating grants and contributions
Capital grants and contributions
Governmental Type
Activities Activities
2003 2003
Total
7,861,142 $ 12,033,067 $ 19,894,209
13,677,503 880,822 14,558,325
3,447,052 11,938,797 15,385,849
Property taxes
Local option sales taxes
Hotal/motal tax
Gaming
Unrestricted invesh'nent eam/ngs
Los~ on sale of capital assets
Other
$ 18,041,049 $ 506,054 $ 18,547,103
6,492,203 6,492,203
970,232 970.232
9,539,598 9,539,598
1,749,301 321,447 2,070,748
(149,650) (I68,001) (317,651)
1,228,232 1.228.232
$ 62,856,662 $ 25,512,186 $ 88368,848
Public safe~y
Public works
Health and social services
Calture and recreation
Community and economic development
General goverament
Interest on long-term debt
Sewage Disposal Works
Water Utility
Parking Facilities
$ 15,817,052
14,453,558
815,524
7,367,147
9,431,702
4,211,922
1,605,326
4,655,696
4,145,983
1,445,434
414,830
2,140,807
2,055,248
$ 15,817,052
14,453,558
815,524
7,367, I47
9,431,702
4,211,922
1,605,326
4,655,696
4, I45,983
1,445,434
414,830
2,140,807
2,055,248
Total expenses
$ 53,702,23I $ 14,857,998 $ 68,560,229
22
Inereases in net assets before transfers $ 9,154,431 $ 10,654,188 $ 19,808,619
Transfers (7,720,462) 7,720,462
Increase in net assets 1,433,969 I8,374,650 19,808,619
Net assets ~ July i, 2002 252,168,202 87,193,944 339,362,146
Net assets - June 30, 2003 $ 253,602,171 $105,568,594 $ 359,170,765
Business-type activities. Business type activities increased net assets by $18,374,650
accounting for 92.8% of the City of Dubuque's growth in net assets at June 30, 2003.
FI2qANCIAL ANALYSIS OF TIlE GOVERNMENT'S FUNDS
Governmental funds. The focus of the City's governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City's financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government's net resources
available for spending at the end of the fiscal year.
The City's governmental funds reported a combined fund balance of.$49,120,499 at June
30, 2003. A portion of the fund balance is reserved and not available for new spending
because it has already been committed for encumbrances, endowments, inventories and
prepaid items, debt service and state statute restricted purposes.
The general fund's fund balance reserve goal is 10% of budgeted annual expenditures.
Our balance is slightly higher than the goal at year-end.
The unreserved fund balance of special revenue employee benefits fund decreased by
$7,521 to $102,530. The unreserved fund balance of special revenue community
development decreased by $131,178 to $2,472,514.
Proprietary funds. The City's proprietary funds provide the same type of information
found in the government-wide financial statements, but in more detail.
The combined net assets of the enterprise funds at June 30, 2003 totaled $105,568,594 of
which 6.0% ($6,308,801) is unrestricted. The net assets of the internal service fimds are
$706,152, a $678,321 decrease from the 2002 total net assets. The unrestricted net assets
of the internal service funds are $641,732 (90.9%).
The sewer disposal works had an increase in net assets of $396,015 for total net assets of
$36,164,271 at June 30, 2003. The water utility had a decrease in net assets of $87,163
for total net assets of $23,512,680. The parking facilities had an increase in net assets of
$6,610,980 for total net assets of $13,023,931. The increase is primarily attributable to a
$6,716,575 transfer for the completion of a parking facility. The America's River Project
had an increase in net assets orS11,906,955 for total net assets of $27,768,156. The
increase is primarily attributable to Vision Iowa funds received.
23
BUDGETARY HIGHI.IGHTS
There were two amendments to the City's 2002-2003 budget. The first amendment was
passed in October 2002 primarily to reflect operating and capital encumbrance
carryovers. The second budget amendment was in May 2003 to reflect projected year-end
expenditures and revenues.
General fund. The final budget for total revenues increased $4,532,567 from the original
budget. The increase was primarily attributable to grants received and other
miscellaneous revenues. The final budget for total expenditares increased $13,541,214
from the original budget. The increase was primarily attributable to purchase order
encumbrances carryover, capital projects carryover from prior year and expenditures
associated with new grants received.
Actual revenues were $2,642,287 less than the final amended budget, and expenditures
were $11,039,526 less than the final amended budget.
CAPITAL ASSET AND DEBT ADMINISTRATION
Capital assets. The City's investment in capital assets for its governmental and business-
type activities as of June 30, 2003, amounts to $334,986,482 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, infrastructure,
machinery and equipment. Additional information on the City's assets can be found in
the note 5 to the fmancial statements in this report.
CAPITAL ASSETS (net of accumulated depreciation)
Governmental Type
Activities Aetivitie*
2003 2003
Total
Land $ 48,575,050 $ 1,584,577 $ 50,159,627
Buildings 37,989,032 59,619,714 97,608,746
Improvements and other buildings 8,829,528 25,742,378 34,571,906
Machinery and equipment 21,748,273 40,303,626 62,051,899
Infi'astmcUa'e 164,517,860 I64,517,860
Constraction ia progress I6,345,691 32,215,865 48,561,556
Accumulated depreciation (67,494,283) (54,990,829) (122,485,112)
$ 230,511,151 $104,475,331 $ 334,986,482
Major expenditures during 2002-2003 were for the Grand River Center, Riverwalk, Flat
Iron park renovation, Main Street project, water, storm and sanitary sewer projects,
completion of new parking ramp, airport taxiway and runway, and (2) Solid Waste
Collection vehicles.
Long-term deba At year end the City had $31,768,205 of debt outstanding. This is a
decrease of $155,390 from June 30, 2002. New debt issued during the current year
24
included $2,500,000 for new water main and new water tower project and $650,000 to
refinance existing debt. The City maintained its Aa3 bond rating for the issue.
The City continues to operate well under the State debt capacity limitations. The State
limits the amount of general obligation debt outstanding to 5% of the assessed value of
all taxable property in the community. Thus our debt capacity is $115,896,000. With
outstanding general obligation debt of $30,271,000 we are utilizing 26.1% of this limit.
Additional information on the City's long-term debt can be found in note 6 of this report.
ECONOMIC FACTORS
The slowing of the national economy had a relatively mild impact on the City of
Dubuque and has been less sev~e than for many local governments. The City's
unemployment rate ended the fiscal year at 3.7%, slightly higher than the 3.6% rate for
the prior year, but well under the State of Iowa rote of 4.2% and the 6.4% national rate.
The City continues to enjoy moderate growth in assessed valuation of taxable property
net of exemptions (8.0% for total of $1,530,066,000). The minimum refuse rate
decreased $0.30 to $7.20 with the implementation of a unit based pricing system. Sewer
rotes increased 1% and water rates increased 2%. The news has not been as good for the
State of Iowa as most of the shared revenue and property tax replacement funds provided
to local governments were cut for the 2003-2004 fiscal year.
Requests for information. This financial report is designed to provide a general
overview of the City's fmances for all those with an interest in the government's
finances. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to the Finance Director, 50 West
13th Street, Dubuque, Iowa 52001-4864.
25
BASIC FINANCIAL STATEMENTS
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
JUNE 30, 2003
ASSETS
CLrRRENT ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes - current
Intergovernmental
Intemat balances
Inventories
Prepaid items
RESTRICTED ASSETS
Temporarily restricted
Cash and pooled cash investments
Permanently reslricted
Cash and pooled cash investments
NONCURRENT ASSETS
Notes receivable - long-term
Capital assets
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infi'astmcture
Construction in progress
Accumulated depreciation
Total Assets
Primary Government
Governmental Business-type
Activities Activities Total
Component
Ul~/t
Dubuque
Metropolitan
Area Solid
Waste Agency
$ 37,I86,961 $ 9,959,062 $ 47,146,023 $ 6,936,033
130,198 4,124 134,322
15,664,637 513,259 16,177,896
1,293,123 1,301,030 2,594,153
534,465 534,465
256,653 45,289 301,942
787,433 787,433
2,209,798 126,614 2,336,412
449,021 (449,021)
124,255 338,943 463,198
10,630 5,037 15,667
200,411
30,975
240,310 553,677 793,987 3,078,860
22,391 22,391
10,922,711 10,922,71I
48,575,050 1,584,577 50,159,627
37,989,032 59,619,714 97,608,746
8,829,528 25,742,378 34,571,906
21,748,273 40,303,626 62,051,899
164,517,860 164,517,860
16,345,691 32,215,865 48,561,556
(67,494,283) (54,990,829) (122,485,112)
300,343,737 116,873,345 417,217,082
552,528
44,349
5,893,766
1,827,636
(5,018,985)
13,545,573
See notes to financial statements.
EXHIBIT 1
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Notes payable - current
General obligation bonds payable - current
Revenue bonds payable - current
Tax-increment financing bonds payable - current
Accrued compensated absences
Accrued interest payable
Intergovernmental payable
Deferred revenue
Succeedhag year property tax
Other
NONCURRENT LIABILITIES
Notes payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and postclosure care
Tax-increment financing bonds payable
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted for/by
Bond ordinance
Debt service
Dog track
Employee benefits
Community development
Streets
Capital projects
Franchise agreement
Endowments
Expendable
Nonexpendable
Other
State statute
Minority interest
Um'eslricted
Total Net Assets
Compone~
U~t
Dubuque
Primary Govermment Metropolitan
Governmental Business-type Area Solid
Activities Activities Total Waste Agency
3,429,800 $ 3,454,315 $ 6,884,I15 $ 65,844
275,588 86,241 361,829 10,437
922,167 283,188 1,205,355
855,000 485,000 1,340,000
190,000 190,000
340,590 340,590
2,248,606 274,850 2,523,456 40,273
133,230 56,050 189,280
19,265 19,265 74,569
I5,664,637 513,259 16,177,896
122,271 122,271
40,000 40,000
19,010,000 4,630,514 23,640,514
1,331,334 1,331,334
1,904,315
3,680,412 3,680,412
46,741,566 11,304,751 58,046,317 2,095j38
311,473,519 3,299,294
704,203
83,833
1,049,091
211,290
14,130,192
6,295,301
6,307,172
897,297
70,09I
22,391
88,940
212,767,403
t50,526
83,833
1,049,091
211,290
14,130,192
6,295,301
6,307,172
897,297
70,091
22,391
88,940
98,706,116
553,677
329,903
1,775,353
11,528,644 6,308,801 17,837,445 6,045,585
$ 253,602,171 $ i05,568,594 $ 359,170,765 $ 11,450,135
26
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTMTIES
FOR YEAR ENDED JUNE 30, 2003
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
Parking Facilities
America's River Project
Refuse collection
Transit system
Total business-type activities
Total primary government
Component unit
Dubuque Metropolitan Area Solid Waste Agency
Program Revenues
Operating Capital
Charges for Grants and Grants and
Services Contributions Contributions
15,817,052 $ 1,583,255 $ 374,193 $
14,453,558 3,367,720 5,352,970 2,579,412
815,524 102,524 102,235
7,367,147 2,145,435 119,819 233,075
9,431,702 280,116 7,521,349 634,565
4,211,922 382,092 206,937
1,605,326
53,702,23I 7,861,142 13,677,503 3,447,052
4,655,696 4,300,156 - 1,031,754
4,145,983 3,975,598 198,409
1,445,434 1,427,146 75,300
414,830 147,695 10,633,334
2,140,807 1,981,105
2,055,248 201,367 880,822
14,857,998 12,033,067 880,822 11,938,797
68,560,229 $ 19,894,209 $ 14,558,325 $ 15,385,849
$ 2,259,828 $ 2,367,776 $ 18,239$
Property taxes
Local option sales tax
Hotel/motel tax
Gaming
Urmestricted investment earnings
Loss on sale of capital assets
Other
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning
Net assets, ending
See notes to £mancial statements.
Net (Expense) Revenue and
Changes in Net Assets
Primary Government Component Unit
Governmental Business-type Dubuque Metropolitan
Activities Activities Total Area Solid Waste Agency
$ (13,859,604) $ $ (13,859,604)
(3,153,456) (3,153,456)
(610,765) (610,765)
(4,868,818) (4,868,818)
(995,672) (995,672)
(3,622,893) (3,622,893)
(1,605,326) (1,605,326)
(28,716,534) (28,716,534)
676,214 676,214
28,024 28,024
57,012 57,012
10,366,199 10,366,199
(159,702) (159,702)
(973,059) (973,059)
9,994,688 9,994,688
(28,716,53{) 9,994,688 (18,721,846)
126,187
18,041,049 506,054 18,547,103
6,492,203 6,492,203
970,232 970,232
9,539,598 9,539,598
1,749,301 321,447 2,070,748
(I49,650) (168,001) (317,651)
1,228,232 1,228,232
(7,720,46~) 7,720,462
30,150,503 8,379,962 38,530,465
1,433,969 18,374,650 19,808,619
252,168,202 87,193,944 339,362,146
$ 253,602,i71
184,815
$ 105,568,594
184,815
311,002
11,139,133
$ 359,170,76~5 $ I1,450,13~5
27
CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2003
EXH][BIT 3
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
· Special assessments
Accrued interest
Notes
Intergovernmental
Due from other fimds
Inventories
Advances to other funds
Prepaid items
Resh-lcted assets
Cash and pooled cash investments
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Deferred revenue
Succeeding year property lax
Other
Total Liabilities
FUND BALANCES
Reserved for~oy Encumbrances
Long-term notes receivable
Advances
Bond ordinance
Debt service
Dog track
Franchise agreement
Endowments
Unreserved, reported in
General fund
Designated for future equipment and
capital maintenance
Designated for future cash flow
Undesignated
Special revenue ftmds
Capital projects fimds
Permanent funds
Total Fund Balances
Total Liabilities and Fund Balances
See notes to financial statements.
Special Revenue Other
Employee Community Governmental
General Benefits Development Funds Total
$ 15,869,856 $ 89,384 $ 1,781,241$ 17,773,509 $ 35,513,990
106,839 16,092 7,267
12,746,383 2,379,236 539,018
1,271,256 21,867
534,465
I52,440 53,453 42,704
11,701,642 8,502
223,118 1,261,357
725,323
372,691
97,010
449,02I
4,352
6,278
I30,198
15,664,637
1,293,123
534,465
248,597
11,710,144
2,209,798
372,691
97,010
449,02I
10,630
262,701 262,701
$ 31,795,I71 $ 2,484,712 $ 13,765,732 $ 20,451,390 $ 68,497,005
$ 1,786,772 $ - $ 34,213 $ 566,638 $ 2,387,623
212,621 108 7,398 31,098 251,225
19,265 19,265
372,691 372,691
12,746,383 2,379,236 539,018 15,664,637
256~885 2,838 421,342 681,065
15~002,661 2,382,182 41,611 1,950,052 I9,376,506
4,124,702
449,021
336,698
10,914,909
1,940,674 6,402,074
7,802 I0,922,711
449,021
150,526 150,526
83,833 83,833
1,049,091 1,049,091
19,327 19,327
22,391 22,391
9,018,759 9,018,759
2,556,000 2,556,000
644,028 644,028
102,530 2,472,514 9,311,587 11,886,631
5,846,016 5,846,016
70,091 70,09I
16,792,510 102,530 13,724,121 18,501,338 49,I20,499
31,795,171 $ 2,484,712 $ 13,765,732 $ 20,451,390 $ 68,497,005
28
CITY OF DUBUQUE, IOWA
RECONCII,IATION OF ']'H ~; GOVERNMENTAL FUNDS BALANCE S H ~;ET
TO THE, STATEMENT OF NET ASSETS
JUNE 30, 2003
EX H I giT 3-1
Total fund balances - governmental funds
Amounts reported for tlie governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets
Accumulated depreciation
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the fands. Those revenues consist of:
Property tax
Special assessments
Other
Internal service funds are used by the City's management to
charge the cost of equipment maintenance and self-insurance
programs to individual fands. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net assets.
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of:
General obligation bonds
Tax-increment financing bonds
Notes payable
Accrued interest
Compensated absences
Net assets of govermnental activities
$ 297,880,195
(67,433,464)
22,965
420,060
115,769
(19,865,000)
(4,021,002)
(962,167)
(133,230)
(2,248,606)
$ 49,I20,499
230,446,731
558,794
706,152
(27,230,005
$ 253,602,171
See notes to financial statements. 29
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
EXHIBIT 4
REVENUES Taxes
Special assessments
Licenses and permits
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Contributions
Gaming
Miscellaneous
Total Revenues
EXPENDITURES
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of reftmding bonds
Pa3anent of refunded bonds
Transfers in
Transfers out
Sale of capital assets
Total Other Financing Sources (Uses)
CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING,
AS RESTATED
FUND BALANCES, ENDING
General
Special Revenue Other
Employee Community Governmental
Benefits Development Funds
$ 17,169,640 $ 1,873,514 $
Total
753,990
1,969,135
5,134,207
465,787
1,105,081
325,003
9,404,598
461,801
- $ 6,465,782 $ 25,508,936
561,406 561,406
753,990
2,434,803 12,845,352 I7,249,290
190,824 5,325,031
465,787
184,197 461,241 1,750,519
I22,957 447,960
I35,000 9,539,598
81,045 769,502 1,312,348
36,789,242 1,873,514 2,700,045 21,552,064 62,914,865
15,278,654 15,278,654
8,707,189 87,632 3,065,183 11,860,004
606,316 122, I25 20,994 749,435
7,340,738 134,830 39,954 7,515,522
1,259,356 2,733,799 5,017,713 9,010,868
3,071,021 51,691 93,175 619,722 3,835,609
55,773 3,622,232 3,678,005
9,930,311 9,930,311
36,319,047 51,691 3,171,561 22,316,109 61,858,408
470,195 1,821,823 (471,516) (764,045) 1,056,457
150,000 150,000
(IS0,000) (150,000)
2,577,555 43,872 390,421 2,356,138 5,367,986
(8,i20,144) (1,873,216) (4,838) (I1,075,607) (21,073,805)
I17,239 ~ 117,239
(5,425,350) (1,829,344) 385,583 (8,719,469) (15,588,580)
(4,955,155) (7,521) (85,933) (9,483,514) (I4,532;123)
21,747,665 110,051 13,810,054 27,984,852 63,652,622
$ I6,792,510 $ 102,530 $ 13,724,121 $ 18,501,338 $ 49,120,499
See notes to £mancial statements. 30
CITY OF DUBUQUE, IOWA
RECONCILIATION OF TIlE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT
OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2003
EX}[IBIT 4-1
Net change in fund balances - total governmental funds
Amounts reported for governmental activities/n the statement of activities are
different because:
Capital outlays are reported as expenditures in govemmentaI funds. However, in the
statement of activities, the cost of capital assets is allocated over their estimated useful lives
as depreciation expense. In the current period, these mounts are:
Capital assets expended in governmental funds
Transfers of capital assets from enterprise funds
Depreciation expense
Because some revenues will not be collected for several months after the City's
fiscal year ends, they are not considered "available" revenues and are deferred
in the govermnental funds. Deferred revenues increased (decreased) by these
amounts this year:
Property tax
Special assessments
Other
Bond proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net assets.
Repayment of bond principal is an expenditure in the governmental funds,
but it reduces long-term liabilities in the statement of net assets and does not
affect the statement of activities. The bond repayments ($2,159,986) exceeded
the bond proceeds ($150,000) by $2,009,986.
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds. These items consist off
Decrease in accrued interest
Increase in compensated absences
Total additional expenses
Internal service funds are used by management to charge the costs of certain
activities to individual feuds. The net revenue of the internal service funds is
reported with governmental activities.
Change in net assets of governmental activities
11,986,141
7,432,958
(4,708,7O3
(5,450)
(18,872)
115,769
62,692
(230,108)
$ (14,532,123)
14,710,396
91,447
2,009,986
(167,416)
(678,321)
$ 1,433,969
See notes to financial statements. 31
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FLYNDS
JUNE 30, 2003
ASSETS
CURRENT ASSETS
Cash and pooled cash Lnvestments
Receivables
Property tax
Delinquent
Succeed'mg year
Accounts
Accrued interest
Intergovernmental
Inventories
Prepaid items
Total Current Assets
RESTRICTED ASSETS
Cash and pooled cash investments
CAPITAL ASSETS
Land
Buildings
Improvements other than buildings
Mackinery and equdpment
Constmetion in progress
Accumulated depreciation
Net Capital Assets
Total Assets
BusinessqypeActivities-
Sewage
Disposal Water Parking
Works Utility Facil~ies
$ 4,590,500 $ 3,518,407 $ 638,925
625,639 439,949 8,390
24,997 13,238 7,054
120,159
330,072
5,037
5,366,332 4,301,666 654,369
553,677
175,671 76,697 1,296,209
31,603,036 7,166,720 I8,956,368
24,975,122 520,295 246,961
6,269,877 28,522,900 598,197
58,721 1,699,950 86,300
(31,609,181) (15,459,740) (5,160,077)
31,473,246 22,526,822 16,023,958
36,839,578 26,828,488 17,232,004
EXHIBIT 5
Enterprise Funds Governmental
America's Other Activities-
River Entc'xprise Internal
Project Funds Total Service Funds
$ 11,664 $ 1,199,566 $ 9,959,062 $ 1,672,971
30,763
4,124 4,124
513,259 513,259
196,289 1,301,030
45,289 8,056
6,455 126,614
8,871 338,943 27,245
5,037
42,427 1,928,564 12,293,358 1,708,272
553,677
36,000 1,584,577
1,893,590 59,619,714
25,742,378
4,912,652 40,303,626 125,239
30,370,894 32,215,865
(2,761,831) (54,990,829) (60,819)
30,370,894 4,080,411 104,475,331 64,420
30,413,321 6,008,975 117,322,366 1,772,692
(continued)
32
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2003
LIABILITIES
Business-type Activities
Sewage
Disposal Water Parking
Works Utility Facilities
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Notes payable - current
General obligation bonds payable - current
Revenue bonds payable - current
Accrued compensated absences
Accrued interest payable
Advances from other funds
Deferred revenue - succeeding year property tax
Total Current Liabilities
88,455 $ 353,459 $ 75,889
23,827 22,018 8,191
283,188
170,000 220,000 95,000
190,000
85,186 80,249 36,807
24,651 7,172 24,227
449,021
675,307 1,131,919 430,114
NONCURRENT LIABILITIES
General obligation bonds payable (net of
d/scount of $24,486)
Revenue bonds payable (net of $18,666
deferred amount on refunding)
Total Nuncurrent Liabilities
2,183,889 2,446,625
1,331,334
2,183;889 3,777,959
675,307 3,315,808 4,208,073
31,020,058 21,273,754 11,960,999
553,677
5,144,213 2,238,926 509,255
$ 36,164,271 $ 23,512,680 $13,023,931
Total Liabilities
NET ASSETS
Invested/n capital assets, net of related debt
Restricted by bond ordinance
Unrestricted
Total Net Assets
See notes to financial statements.
EXH ! ~IT 5
(continued)
Enterprise Funds
America's Other
River Enterprise
Project Funds
Total
Governmental
Activities-
Internal
Service Funds
$ 2,645,165 $ 291,347 $ 3,454,315 $ 1,042,177
32,205 86,241 24,363
283,188
485,0O0
190,000
72,608 274,850
56,050
449,021
513,259 513,259
2,645,165 909,419 5,791,924 1,066,540
4,630,514
1,331,334
5,961,848
2,645,I65 909,419 11,753,772 1,066,540
30,370,894 4,080,411 98,706,116
553,677
(2,602,738) 1,019,145 6,308,801
$ 27,768,156 $ 5,099,556 $105,568,594 $
64,420
641,732
706,152
33
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR TH I~; YEAR ENDED JUNE 30, 2003
OPER2kTING REVENUES
Charges for sales and services
Other
Total Opiating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Lnsurance
Depreciation
Total OpemtLng Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENLrES (EXPENSES)
Taxes
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain (loss) on disposal of assets
Total Nonoperating Revenues (Expeuses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS
CAPITAL CONTRIBUTIONS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING, AS RESTATED
NET ASSETS, ENDING
Business-type Activities -
Sewage
Disposal Watm' Parking
Works Utility Facilities
$ 4,293,740 $ 3,964,302 $ 1,425,991
6,416 11,296 1,155
4,300,156 3,975,598 1,427,146
1,581,034 1,555,020 549,283
416,990 372,952 80,906
241,906 77,177 32,803
1,224,987 1,149,860 i63,097
71,170 65,194 21,408
1,086,685 829,564 362,503
4,622,772 4,049,767 1,210,000
(322,616) (74,169) 217,146
146,850 99,839 56,379
96,300
(32,924) (96,216) (235,434)
263 (68,192)
210,489 (64,569) (179,055)
(112,127) (138,738) 38,091
935,454 198,409 75,300
6,716,575
(427,312) (146,834) (218,986)
396,015 (87,163) 61610,980
35,768,256 23,599,843 6,412,951
$ 36,164,271 $ 23,512,680 $ 13,023,931
See notes to fir~mcial statements.
Enterprise Funds
Project
Governmental
Other Activities-
Enterprise Internal
Funds Total Service Funds
$ $
147,695
147,695
2,165,822 $ 11,849,855 $ 5,727,900
16,650 183,212 3,688
2,182,472 I2,033,067 5,731,588
479
414,276
75
414,830
(267,135)
2,115,805 5,801,142 1,527,874
54,148 925,475 17,19t
311,427 663,313 10,021
1,080,618 4,032,838 5,149,435
126,910 284,757 290,141
507,147 2,785,899 9,068
4,196,055 14,493,424 7,003,730
(2,013,58~) (2~60,357) (1,272,142)
506,054 506,054
10,452,571 880,822 11,333,393
18,379 321,447 41,301
I50,000 246,300
(364,574)
(100,072) (168,001) 12!
I0,620,950 1,286,804 11,874,619 41,422
10,353,815 (726,779) 9,414,262 (1,230,720)
30,763 1,239,926
15,671,910 283,600 22,672,085 553,639
(14,149,533) (8,958) (14,951,623) (1,240)
11,906,955 (452,137) 18,374,650 (678,32I)
15,861,20I 5,551,693 87,193,944 1,384,473
$ 27,768,156 $ 5,099,~556 $ 105,568,594 $ 706,152
EXmmlT 6
34
CITY OF DUBUQUE, IOWA
STATEMENT OF CASE[ FLOWS
PROPRIETARY FUNDS
FOR TEIE YEAR ENDED JUNE 30, 2003
CASH FLOWS FROM OPERATING ACTMTIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other opemfmg receipts
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Payment of interfimd balances
Property tax receipts
Intergovernmental grant proceeds
NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds fi-om sale of property and equipment
Acquisition and construction of property and equipment
Business-type Activities -
Sewage
Disposal Water Parking
Works Utility Facilities
$ 4,335,847 $ 4,016,428 $ 1,424,066
(1,997,390) (1,513,989) (241,368)
(1,569,951) (1,534,999) , (545,930)
6,416 11,296 1,155
774,922 978,736 637,923
(427,312) (I46,834) (218,986)
(438,750) (33,056)
263
(1,490) (2,171,749) (124,284)
Proceeds from issuance of debt
Payment of debt
Interest paid
Contributions
Intergovernmental grant proceeds
315,000 2,640,000
(458,335) (371,111) (270,958)
(t5,432) (89,044) (237,116)
96,300
3,335
NET CASH PROVIDED (USED) BY CAPITAL AND
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM IN-VESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, EN!?ING
(60,359) 8,096 (632,358)
157,569 105,026 56,895
6,070 911,968 (156,526)
4,584,430 2,606,439 1,349,128
$ 4,590,500 $ 3,518,407 $ 1,192,602
(866,062) (179,890) (218,98~)
Enterprise Funds
River
Project
Governmental
Other Activities-
Enterprise Internal
Funds Total Service Fu2ads
1,854,597
147,695
$ 2,183,082 $ 11,959,423 $ 5,903,697
(1,611,936) (3,510,086) (5,373,971)
(2,110,220) (5,761,I00) (1,521,532)
16,650 183,212 3,688
2,002,292 (1,522,424) 2,871,449 (988,118)
15,671,910
283,600 15,955,510 553,639
(8,958) (802,090) (1,240)
(471,806) (65,020)
509,190 509,190
1,080,669 1,080,669
15,671,910 1,864,501 16,271,473 487,379
(28,283,488)
263 121
(270,964) (30,851,975)
2,955,000
(1,100,404)
(341,592)
150,000 246,300
10,452,571 10,455,906
(17,680,917) (270,964) (I8,636,502) 12t
18,379 7,376 345,245 49,388
11,664 78,489 851,665 (451,230)
1,121,077 9,661,074 2,124,201
$ 11,664 $ 1,199,566 $ 10,512,739 $ 1,672,971
(continued)
35
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
RECONCILIATION OF OPERATING INCOM]~ (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING
ACTMTIES
Operating income (loss)
Adjustments to reconcile operating income (less) to net
cash provided (used) by operating activities
Depreciation
Change in assets and liabilities Decrease (increase) in receivables
Decrease (increase) in inventories and prepaid items
Increase (decrease) in accounts payable
Increase in accrued liabilities
Total Adjustments
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Business-type Activities
Sewage
Disposal Water Parking
Works Ufdity Facilities
$ (322,616) $ (74,169) $ 217,146~
t,086,685 829,564 362,503
42,107 52,126 (1,925)
(18,694)
(42,337) 16~,888 56,846
11,083 20,021 3,353
1,097,538 1,052,905 420,777
$ 774,922 $ 978,73~6 $ 637,923
NONCASH CAPITAL AND RELATED FINANCING
ACTMTIES
Contn'butions of capital assets from other funds and
outside sources
Contributions of capital assets to other funds
$ 935,454 $ 198,409 $ 6,791,875
$ $ $
See notes to financial statements.
EXH~IT 7
(continued)
Enterprise Funds Governmental
America's Other Activities-
R/ver Enterprise Internal
Project Funds Total Service Funds
$ (267,135) $ (2,013,583) $ (2,460,357) $ (1,272,142)
2,269,427
507,147 2,785,899 9,068
17,260 109,568 175,797
(3,541) (22,235) 2,146
(35,292) 2,418,532 90,67I
5,585 40,042 6,342
2,269,427 491,159 5,331,806 284,024
$ 2,002,292 $ (1,522,424) $ 2,871,449 $ (988,Ii8)
$ 30,763 $ $ 7,956,50I $
$ 14,149,533 $ $ 14,149,533 $
36
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
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. Stewardship, Compliance, and Accountability
3. Cash on Hand, Deposits, and Investments
4. Interfund Balances and Transfers
5. Capital Assets
6. Long-Term Debt
7. Risk Management
8. Commitments and Contingent Liabilities
9. Post-Employment Health Care Benefits
I0. Employee Retirement Systems
11. Conduit Debt
12. Landfill Closure and Postclosure Care
t3. Vision Iowa Grant
14. Accounting Change
15. Restatement of Begininng Balances
I6. Subsequent Event
17. New Governmental Accounting Standards Board (GASB) Standards
37
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 1 - SUMMARY OF SIGNIFICANT ACCOUN'I'I~'qG POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six-member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component unit, an entity for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component unit is reported in a separate coluran in the government-wide financial statements to
emphasize that it is legally separate from the City. The component unit also has a June 30 year end.
Discretely Presented Component Unit. The Dubuque Metropolitan Area Sohd Waste Agency was created
under the provisions of Chapter 28E of the Code of Iowa by the City of Dubuque and Dubuque County.
The Agency's purpose is to provide solid waste management for the Dubuque metropolitan area. The City
appoints a voting majority of the Agency's governing board and has authority over those persons
responsible for the day-to-day operations of the Agency. The Agency is presented as a proprietary fund
type. Complete financial statements for the Agency may be obtained from the City of Dubuque.
City of Dubuque
Finance Department
50 West 13th Street
Dubuque, Iowa 52001
Jointly Governed Organizations
The City also participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing financial
interest or responsibility by the participating governments. City officials are members of the following
boards and commissions:
City of Dubuque Conference Board
Dubuque County E-911 Committee
Dubuque Drag Task Force
Government-Wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of activities
report information on all of the nonfiduciary activities of the primary govm'nment and its component unSt.
For the most part, the effect of interfund activity has been removed from these statements. Governmental
activities, which normally are supported by taxes and intergovernmental revenues, are reported separately
from business-type activities, which rely to a significant extent on fees and charges for support. Likewise,
theprimary government is reported separately from certain legally separate component units for which the
primary government is financially accountable.
(continued on next page) 38
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
The statement of activities demonstrates the degree to winch the direct expenses of a given fimction or
segment are offset by program revenues. Direct expenses are those that are clearly identifiable with a
specific function or segment. Program revenues include I) charges to customers or applicants who
purchase, use, or directly benefit fi-om goods, services, or privileges provided by a given function or
segment and 2) grants and contr/butions that are restricted to meeting the operational or capital
requirements of a particular function or segment. Taxes and other items not properly included among
program revenues are reported instead as general revenues.
Separate financial statements are provided for governmental funds and proprietary fm~ds. Major
individual governmental funds and major individual enterprise funds are reported as separate columns in
the fund financial statements.
Measurement Focus, Basis of Accounffng, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fired 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 recogn/zed as revenues in the year for winch they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible with2n the
current period or soon enough thereafter to pay liabilities of the current period. For tins purpose, the
government considers revenues to be available if they are collected within 60 days of the end of the
current fiscal period. Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Property taxes, francinse 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 Mt/fin 60 days after year-end. Other receipts and taxes become
measurable and available when cash is received by the City and are recognized as revenue at that time.
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Employee Benefits Fund is used to account for pension and related employee benefit costs for
those employees paid wages from the General Fun&
The Community Development Fund is used to account for the use of Commurfity Development
Block Grant funds as received fi:om federal and state governmental agencies.
(continued on next page) 39
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account for the operations of the City's sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City's water facilities and
services.
The Parla'ng Facilities Fund is used to account for the operations of the City-owned parking
ramps and other parking facilities.
The America's River Project is used to account for the construction of all projects covered by the
Vision Iowa Grant, including ail matching funds..
Additiotmlly, the City reports the internal service fund type. Internal service funds are used to account
for general, garage, stores/printing, health insurance, and worker's compensation insurance services
provided by one department to other departments of the City on a cost-reimbursement basis.
Private-sector standards of accounting and financial reporting issued prior to Decmnbar 1, 1989, generally
are followed in both the government-wide and proprietary fund financial statements to the extent that
those standards do not conflict with or cuntmdict guidance of the Govermental Accounting Standards
Board. Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to tiffs same limitation. The City has elected not to
follow subsequent private-sector guidance.
As a general nde the effect of interfimd activity has been eliminated from the government-wide fmancial
statements. Exceptions to tiffs general nde are charges between the City's water and sewer function and
various other functions of the City. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1 ) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes. ~
Propfi~ary 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. Ail revenues and expenses not
meeting this definition are reported as nonopemting revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the government's policy to use
restricted resources first, then unrestricted resources as they are needed.
(continued on next page) 40
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Assets, Liabilities, and Equity
Deposits and Investments
Cash and cash equivalents are considered to be cash on hand, demand deposits, and short-term
investments with original maturities of three months or less from the date of acquisition.
State statute authorizes'the City and the Dubuque Metropolitan Area Solid Waste Agency to invest public
funds in obligations of the United States government, its agencies and instrumentalities; certificates of
deposit or other evidences of deposit at federally insured depository institutions approved by the City
Council; prime eligible bankers acceptances; certain high~rated commercial paper; perfected repurchase
agreements; certain registered open-end management investment companies; certain joint investment
trusts; and warrants or improvement certificates of a drainage district.
Investments are stated at fair value or amortized cost. Amortized cost is used only for money market
investments that have a remaining maturity at time of purchase of one year or less.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at the end
of the fiscal year are referred to as either "due to/from other funds" (i.e., the current portion of interfund
loans) or "advances to/from other funds" (i.e., the non-current portion of interfund loans). All other
outstanding balances between funds are reported as "due to/from other funds." Any residual balances
outstanding between the governmental activities and business-type activities are reported in the
government-wide financial statements as "internal balances."
Advances between fimds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources.
Property tax receivable is recognized in the funds on the levy or lien date, which is the date that the tax
asking is certified by the City to the County. Current year delinquent property taxes receivable represents
unpaid taxes from the current year. The succeeding year property tax receivable represents taxes certified
by the City to be collected in the next fiscal year for the purposes set out in the budget for the next fiscal
year. By statute, the City is required to certify its budget to the County Auditor by March 15 of each year
for the subsequent fiscal year. However, by statute, the tax asking and budget certification for the
following fiscal year becomes effective on the first day of that year. Although the succeeding year
property tax receivable tins been recorded, the related revenue is deferred and wig 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 first billing is mailed on July I and the second billkng is
mailed on January 1. The billings are considered due upon receipt by the taxpayer; however, the actuai
due date is based on a period ending three months after the tax bill mailing. On these dates (September 30
and March 31), the bill becomes delhiquent, and penalties and interest may be assessed by the
government.
(continued on next page) 41
CITY OF DUBUQUE, IOWA
NOTES TO FI2NANCIAL STATEMENTS
JUNE 30, 2003
Inventories and Prepaid Items
Inventories included in the governmental funds is valued at cost using the first-in, first-out (FIFO) basis.
The costs of governmental fund inventories are recorded as expenditures when consumed rather than
when purchased.
Inventories of materials and supplies in the enterprise funds is deterrmned by actual count and priced on
the FIFO basis.
Inventories included in internal service funds is stated at the lower of cost (FIFO basis) or market and
consists of consumable supplies. The cost of these supplies is recorded as au 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 itmus.
Restricted Assets
Certain proceeds of the City's revenue bonds, as well as certain resources set aside for their repayment,
are classified as restricted assets on the balance sheet/statement of net assets because their use is lira/ted
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 sink/rig" 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 are classified as restricted assets because their use is limited by
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.
Capital Assets
Capital assets, which include property, plant, equipment, and infrastructure assets (e.g., roads, bridges,
sidewalks, and similar items), are reported in the applicable governmental or business-type activities
columns in the government-wide financial statements. Capital assets are defined by the government as
assets with an initial, individual cost of more than $100,000 for infrastructure assets, $20,000 for building
assets, and $5,000 for the remaining assets, and an est/mated 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 est/mated fair market value at the date of donation.
The costs of normal maintenance and repairs that do not add to the vaiue of the asset or materially extend
assets lives are not capitalized.
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.
(continued on next page) 42
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Property, plant, and equipment of the primary government, as well as the component unit, is depreciated
using the straight-line method over the following estimated usefal lives:
Assets
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Years
40 to 125
15 to 50
2 to 30
15 to 75
Compensated Absences
The City allows employees to accumulate earned but unused vacation and sick pay benefits. Vacation pay
is payable to employees upon retirement or term/nation. Sick pay is payable only upon retirement, in
which event employees are paid for 25% of all eligible hours (50% in the case of police and frre
employees). All vacation pay and applicable sick pay benefits are accrued when incurred in the
government-wide, proprietary, and fiduciary fund financial statements. A liability for these mounts is
reported in governmental funds only if they have matured, for example, as 'a result of employee
resignations and retirements.
Long-Term Obligations
In the government-wide firmncial statements, and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business4ype 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 fond financial statements, governmental fund types recognized bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other
finaucing sources. Premiums received on debt issuances are reported as other-financing sources while
discounts on debt issuances are reported as othei financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
Equity'
The Dubuque Metropolitan Area Solid Waste Agency's restricted net assets represent outside third-party
restrictions and amounts restricted for minority interest of the Agency. The Agancy is restricted to uskng
certain amounts for purposes specified by state statute. The net assets restricted for minority interest is
calculated at 22.7% of unrestricted net assets, based on the 1976 revenue bond resolution anthorizing the
issuance of revenue bonds for the construction of the landfill.
In the fund financial statements, governmental funds report reservations of fund balance for amounts that
are not available for appropriation or are legally restricted by outside parties for use for a specific
purpose. Designations of fand balance represent tentative management plans that are subject to change.
(continued on next page) 43
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 2 - STEWARDSWIP, CO~h~PLIANCE, AND ACCOUNTABH~ITY
Budgetary Information
The Code of Iowa requires the adoption of an annual budget on or before March I5 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 level.
The City's budget is prepared on the cash basis of accounting with an adjustment for accrual payroll.
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 o£ 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, 2003, was amended two times during the year to allow the
City to increase function expenditures by approximately $73,159,000, primarily for the carry-forward' of
unfinished capital improvement projects, expenditure of additional grants for capital improvements, and
the expenditure of additional intergovernmental revenue for commtmity development projects.
The following table, which includes all funds with function budgets, has been prepared to demonstrate
legal compliance with budget control:
Function Budget Actual Variance
Public Safety
Pubhc Works
Health and Social Services
Culture and Recreation
Community and Economic Development
General Government
Debt Service
Capital Projects
Business-type Activities
$ 15,376,633 $ 15,118,148 $ 258,485
7,836,612 7,003,174 833,438
995,112 724,045 271,067
6,683,382 6,683,508 (126)
9,643,537 8,955,522 688,015
4,082,502 4,016,214 66,288
3,977,525 3,683,088 294,437
44,359,316 18,140,060 26,219,256
82,584,825 43,036,278 39,548,547
Expenditures/expenses - budgetary basis
$ 175.539.444 107,360,037 $ 68.179.40~77
Accrual adjustments
(30,643,631)
Expenditures/expenses - GAAP basis
$ 76.716,406
In additior~ annual budgets are similarly adopted in accordance with the Code of Iowa by the Dubuque
Metropolitan Area Solid Waste Agency's governing body.
(continued on next page) 44
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIA~L STATEMENTS
JUNE 30, 2003
Deficit Fund Equity
The following funds had deficit fo_nd balances/net assets mounts as of June 30, 2003:
Capital Projects
Airport Construction $ 10,233
Internal Service
General Service 8,981
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 mount at year-end was $8,906 for the City a~d $450 for the Dubuque
Metropolitan Area Solid Waste Agency.
Deposits. At year-end, the City's carrying amount of deposits was $23,004,584 and the bank balance was
$28,382,301. The City's deposits in banks at June 30, 2003, 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 fimds.
The carry/rig amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$10,014,443 and the bank balance was $10,549,975. The Agency's deposits in banks at June 30, 2003,
were entirely covered by federal depository insurance or by the State Sinking Ftmd in accordance with
Chapter 12C of the Code of Iowa.
Investments. The City classifies its investments into categories which present an indication of the level
of credit risk in relation to the nature of the investment and the custodial provisions. Category 1 records
securities that are insured, registered, held by the City, or held by the City's agent in the City's name.
Category 2 denotes uninsured and unregistered securities that are held by a counterparty's trust
department or agent in the City's name. Category 3 specifies uninsured and unregistered securities that are
held by a counterparty% trust department or agent in other than the City's name.
The City's investments at June 30, 2003, are as follows:
Categories Fair
1 2 3 Value
U.S. Treasury Securities $ 306,188
Federal Agency Obligations 23,028,057
Corporate Stock 58,734
$ $
$ 306,188
23,028,057
58,734
~ $
Investment Pools:
Mutual U.S. Government Bond Fund
23,392,979
1,555,932
Total Investments $ 24.948.91 t
(continued on next page) 45
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
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, commurfity development, tort
liability, road use tax, cable tv, general construction, refuse collection, transit system, general service,
garage service, and stores/printing funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2003.
A reconciliation of cash and investments as shown on the government-wide statement of net assets for the
primary government follows:
Cash on hand
Carrying mount of deposits
Carrying amount of investments
8,906
23,004,584
24,948,911
Total
Cash and pooled cash investments
Cash and pooled cash investments - temporarily restricted
Cash and pooled cash investments - permanently restricted
47,146,023
793,987
22,391
Total
A reconciliation of cash and investments as shown on the government-wide statement of net assets for the
Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand
Carrying amount of deposits
$ 450
10,014.443
Total $ 10.014.8 9~3
Cash and pooled cash investments
Cash and pooled cash investments - temporarily restricted
$ 6,936,033
3,078.860
Total $ 10.014.89~3
NOTE 4 - INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2003, include amounts due to/from other funds and advances due to/from
other funds. Due to/fi'om other funds balances represent amounts due to the general fund from the airport
construction fund ($228,173) and the tax increment financing fend ($144,518) for deficit pooled cash
balances. Advances to/from other fund balance of $449,02I represent amounts due to the general fund
from the water utility fund for a construction loan.
Interfimd transfers for the year ended June 30, 2003, consisted of the following:
(continued on next page) 46
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Transfer from
Nonmajor Sewage
Employee Community Governmental Disposal Water
General Benefits Development Funds Works Utility
Transfer to
General $
Employee benefits
Commmfity
development 300,421
Nonmajor
governmental 925,169
Parking facilities
America's fiver
project 6,297,991
Nonmaj or enterprise 100,000
Internal service 496,563
$ 1,873,216 $ $ 703,099 $ $
43,872
90,000
877,413 416,879 136,677
200 9,158,905
183,600
4,638 18,718
10,433 10,157
$ 8,120,144 $ 1,873,216 $ 4,838 $ 11,075,607 $ 427,312 $ 146,834
Transfer to
General
Employee benefits
Community
development
Nonmajor
govemmentaI
Parking facilities
America's river
project
Nonmajor enterprise
Internal service
Transfer from
America's Nonmaj or Internal
Parking River Enterpr/se Service
Facilities Project Funds Funds
Total
$ $ $ $ 1,240 $ 2,577,555
43,872
- 390,421
2,356,138
6,716,575 6,716,575
214,814 15,671,910
283,600
4,172 8,958 553,639
$ 218,986 $ 6,716,575 $ 8,958 $ 1,240 28,593,710
Transfer to general capital assets fi:om America's river project
Total transfers out
7,432,958
$ 36,026,668
(continued on next page) 47
CITY OF DUBUQUE, IOWA
NOTES TO FINA~NCIAL STATEMENTS
JUNE 30, 2003
In the fund statements, total transfers out of $36,026,668 are greater than total transfers in of $28,593,710
because of the treatment of transfers of capital assets to the general capital assets. During the year capital
assets related to America's River Project, with a book value of $7,432,958 were transferred to general
capital assets. No mounts were reported in the governmental funds as the mounts did not involve the
transfer of financial resources. However, the Amer/ca's River Project did report a transfer 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 thmn, (2) move receipts restricted to debt service from
the funds collecting the receipts to the debt service fund as debt service payments become due, and (3)
use unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations.
In the year ended June 30, 2003, according to grant requ/raments the City made various transfem into the
America's River Project Fund to finance capital assets. When completed these capital assets are
transferred to their respective fund.
NOTE 5 - CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2003, was as follows:
Primary Government:
Governmental activities:
Begin~ng
Balance Ending
as Restated Increases Decreases Balance
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being depreciated
$ 42,201,537 $ 6,942,473 $ (568,960) $ 48,575,050
14.524,286 15,944.253 (14,122.848) 16,345,691
56,725,823 22,886,726 (14,691~808) 64.920,741
Capital assets, being depreciated:
Bu/ldings
Improvements other than builcFmgs
Machinery and equipment
Infrastructure
Total capital assets being depreciated
38,054,919 461,264 (527,151) 37,989,032
8,412,173 629,020 (211,665) 8,829,528
20,740,035 1,902,580 (894,342) 21,748,273
155,772,187 8,745,673 164.517,860
222,979,314 11,738,537 (1,633.158) 233,084,693
(continued on next page) 48
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Infrastructure
Total accumulated depreciation
Beginning
Balance Ending
as Restated Increases Decreases Balance
$(i5,618,453) $ (693,602) $ 351,686 $(15,960,369)
(3,038,260) (303,727) 164,092 (3,I77,895)
(8,471,905) (1,534,053) 604,519 (9,401,439)
(36,766,696) (2,187,884) (38,954.580)
(63,895,314) (4,719,266) 1,120.297 (67.494.283)
Total capital assets, being depreciated,
net
Gov~mmantal activities capital assets,
net
159,084.000 7,019,271 (512,861) 165,590,410
$215.809.82~3 $ 29.905.99~7 $(15.204.669~ $230.511.151
Business-type activities:
Capital assets, not being depreciated:
Land
Construction in progress
Total capital assets, not being
depreciated
$ 6,335,936 $ 1,450,717 $ (6,202,076) $ 1,584,577
12,470,388 32,025,293 (12,279,816) 32,215,865
18,806,324 33,476.010 (18,481,892) 33,800,442
Capital assets, being depreciated:
Buildings
Improvements other thzm buildings
Machinery and equipment
Total capital assets being depreciated
52,529,264 7,090,450 59,619,714
24,280,566 1,461,812 25,742,378
39,624,852 1,557,486 (878.712) 40,303,626
116.434,682 10,109,748 (878,712) 125,665,718
Less accumulated depreciation for:
Buildings
Improvements other than buildings
Machinery and equipment
Total accumulated depreciation
(32,279,791) (876,384) (33i156,175)
(5,311,349) (604,645) (5,915,994)
(15,097.320) (I.441,424) 620.084 (15,918,660)
(52,688.460) (2,922.453) 620,084 (54,990,829)
Total capital assets, being depreciated,
net
63,746,222 7.187,295 (258,628) 70.674,889
BusineSs-type activities capital assets, net $ 82.552.54~6 $ 40.663_30~5 $(18.740.520~) $104.475.33~1
(continued on next page) 49
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
J-tYNE 30, 2003
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
$ 473,292
3,236,918
7,718
839,106
26,658
125,011
Total depreciation expense - governmantal activities
$ 4.708.703
Bus/ness-type activities:
Sewage disposal works
Water utility
Parking facilities
Refuse collection
Transit system
$ 1,086,685
829,564
362,503
184,386
322,761
Total depreciation expense - business-type activities
$ 2.785.899
Component Unit:
Dubuque Metropolitan Area Solid
Waste Agency:
Beginning Ending
Balance Increases Decreases Balance
Capital assets, not being depreciated:
Land
$ 552,528 $ $ $ 552,528
Capital assets, being depreciated:
Buildings
Improvements other than buildings
Machinery and equipment
Total capital assets being depreciated
44,349 44,349
5,893,766 5,893,766
1,827,636 1,827.636
7.765,751 7,765,751
Less accumulated depreciation for:
Bnildings
Improvements other than buildings
Machinery and equipment
Total accumulated depreciation
(44,349) (44,349)
(3,277,773) (282,549) (3,560,322)
(1,222,358) (191.956) (1,414,314)
(4,544,480) (474.505) (5,018,985)
Total capital assets, being depreciated,
net
3,221,271 (474,505) 2,746,766
Dubuque Metropolitan Area Solid
Waste Agency capital assets, net
~ $ (474.505] $ ~
Depreciation expense of $474,505 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
(continued on next page) 50
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 6 - LONG-TERM DEBT
General Obligation Bonds. The City issues general obligation bonds to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds have been issued for both
governmental and business-type activities. The original amount of general obligation bonds issued in
prior years was $24,375,000. During the year, general obligation bonds totaling $3,I05,000 were issued
to refund general obligation bonds and to fund a new water main and tower.
General obligation bonds are direct obligations and pledge the f01i 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, 2003, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Corporate purpose 07/01/95
Corporate purpose 06/01/00
Corporate purpose 11/01/00
Corporate purpose 12/27/01
Corporate purpose 01/09/02
Corporate purpose 03/26/02
Corporate purpose
and refunding 12/03/02
05/01/96-05/01/05 4.804.90% $ 2,000,000 $ 650,000
06/01/02-06/01/20 5.80-5.88 2,750,000 2,565,000
06/01/02-06/01/20 5.00-5.25 6,265,000 5,845,000
06/01/05-06/01/21 4.00-4.90 9,500,000 9,500,000
06/01/04-06/01/21 4.00-4.95 2,860,000 2,860,000
06/01/03-06/01/2I 3.75-5.00 1,000,000 980,000
06/01/03-06/01/17 2.50-4.30 3,105,000 2,605,000
$ 27.480~000 $ 25.005.000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ending Governmental Activities
June 30 Principal Interest
Business-type Activities
Principal Interest
2004 $ 855,000 $ 929,474 $ 485,000 $ 239,232
2005 1,315,000 890,361 240,000 223,971
2006 590,000 832,911 250,000 213,972
2007 830,000 806,598 265,000 203,531
2008 875,000 770,530 270,000 192,362
2009-2013 5,175,000 3,220,722 1,520,000 769,441
2014-2018 6,225,000 1,925,845 1,675,000 372,204
2019-2021 4.000,000 377,888 435.000 38,616
Total
$ 19.865.00~0 $ 9.754.329 $ 5.I40~000 $ 2.253.32~9
(continued on next page) 51
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
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 f'mancing d/stricts
to pay debt service. These bonds generally are issued as serial bonds with varying mounts of principal
maturing annually and with interest payable semi-annually. Tax-incremant financing bonds outstanding at
June 30, 2003, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Advanced Data-
Com 03/18/99 12/31/01-06/30/1I 6.0-9.0% $ 900,000 $ 754,069
Categraph Systems 12/01/99 12/31/01-12/31/10 8.8 360,000 303,798
Eagle Window &
Door 02/15/00 12/31/02-06/30/12 9.1 3,168,538 2,963,135
$ 4.428.53~88 $ 4.021.002
Annual debt service requirements to maturity for tax-increment financing bonds are as follows:
Fiscal Year Ending Governmental Activities
June 30 Principal Interest
2004 $ 340,590$ 334,782
2005 369,501 305,871
2006 400,911 274,461
2007 435,061 240,311
2008 472,192 203,180
2009-2012 2,002,747 385,239
Total $ 4.021.00~2 $ 1.743.84~44
Revenue Bonds. The City also issues bonds where the City pledges income derived from 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, 2003, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Parking facilities 03/01/98 05/01/984)5/01/10 4.404.75% $ 2.515.00~0 $ 1.540.000
(continued on next page) 52
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending
June 30
Business-Type Activities
Principal Interest
2004 $ 190,000 $ 70,885
2005 200,000 62,525
2006 210,000 53,525
2007 220,000 43,970
2008 230,000 33,850
2009-2012 490,000 35.030
Total $ 1.540.000 $ 299.785
Notes Payable. Notes payable have been issued to prov/de funds for economic development and for the
purchase of fixed assets. Notes payable at June 30, 2003, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Economic
development 02/27/98 07/01/03 4.40% $ 655,500 $ 655,500
Economic
development 07/15/99 07/01/00-07/01/04 None 800,000 266,667
Land purchase 06/30/00 07/01/03 6.00 320,000 283,188
Fiber optic line 02/25/02 07/01/04 None 40,000 40,000
$ 1.815.500
Debt service requirements to maturity for notes payable are as follows:
Fiscal Year Ending Governmental Activities
June 30 Principal Interest
Business-type Activities
Principal Interest
2004 $ 922,167 $ 28,842 $ 283,i88 $ 24,398
2005 40,000
Total $ 962.167 $ 28.842 $ 283.188 $ 24.398
Current Refunding. The City issued $605,000 of general obligation bonds for a current refunding of
$595,000 of general obligation bonds. The refunding was undertaken to reduce interest rates from 5.13%
to 2.50%. ~ne reacquisition price equaled the net canying amount of the old debt. The transaction
resulted in an economic gain of $10,898 and a reduction of $10,278 in futare debt service payments.
(continued on next page) 53
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Changes in Long-term Liabilities. Long-term liability activity for the year ended June 30, 2003, was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
General obligation bonds $ 20,945,000 $ 150,000 $ (1,230,000) $ 19,865,000 $ 855,000
Tax-increment financing
bonds 4,334,988 (313,986) 4,021,002 340,590
Notes payable 1,578,167 (616,000) 962,167 922,167
Compensated absences 2,018,498 2,248,606 (2,018,498) 2,248,606 2,248,606
$ 28.876.653 ~ $ (4.178.484) $ 27.096,775 $ 4.366_363
Business-type activities:
General obligation bonds $ 3,105,000
Less: Unamortized
discounts (24,750)
Total general
obligation bonds 3,080.250
Revenue bonds 1,720,000
Less: Deferred amounts
on refunding (21,333)
Total revenue bonds 1,698,667
Notes payable 286,523
Compensated absences 265,866
$ 2,955,000 $ (920,000) $ 5,140,000 $ 485,000
(1,111) 1,375 (24,486)
2,953,889 (918,625) 5,115,514 485,000
(t80,000) 1,540,000 190,000
2,667 (18,666)
(177,333) 1,521,334 190,000
(3,335) 283,188 283,188
274,850 (265,866) 274,850 274,850
$ 5.331.306 ~ $ (1.365.159) $ 7.194.886
For the governmental activities, compensated absences are generally liquidated by the general fund,
community development fund, and section VIII housing fund.
NOTE 7 - RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters for which the governmant carries commercial insurance and
participates in a local government risk pool.
The City has established a Health Insurance Reserve Fund for insuring benefits provided to City
employees and covered dependents which is included in the Internal Service Fund Type. Health benefits
were self-insured up to an individual stop loss amount of $80,000, and an aggregate stop loss of
approximately $5,520,000 for 2003. Coverage fi.om a private insunmce company is maintained for losses
in excess of the stop loss amount. All claims handling procedures are performed by a third-party claims
adminish-ator. Incurred but not reported claims have been aecmed 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 clawing adjustment
expense.
(cominued on next page) 54
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
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 $400,000, and an aggregate stop loss consistent with
statutory limits for 2003. 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 trove been accrued as a liability based upon the claims
administrator's est/mate. Settled claims have not exceeded commercial coverage in any of the last three
fiscal years. Tlie 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 Resmwe Fund based on actuarial estimates of the amounts needed
to pay prior- and current-year cia/ms. The claims liability of $757,~44 in the Health Insurance Reserve
Fund and $281,128 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 stataments and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities for the fiscal years ended June 30, 2002 and 2003, are summarized as
follows:
Health Workers'
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 30, 2001
Claims and changes in estimates during fiscal year 2002
Claim payments
536,508 $ 176,549
3,706,029 459,078
(3,634,035) (309,876)
LiabiI/ties at June 30, 2002
Claims and changes in estimates during fiscal year 2003
Claim payments
608,502 325,751
4,336,860 297,067
(4,187,418) (341,690)
Liabilities at June 30, 2003
$ 75~944 $ 281.128
The City is a member in the Iowa Communities Assurance Pool, as allowed by Chapter 670.7 of the Code
of Iowa. The Iowa Communities Assurance Pool (Pool) is a local government risk-sharing pool with over
475 members from various governmental entities throughout the State of Iowa. The Pool was formed in
August 1986 for the purpose of manag/ng and funding th/rd-party liability claims against its members.
The Pool provides coverage and protection in the following categories: general liability, automobile
liability, automobile physical damage, publ/c officials liability, police professional liability, property,
irdand marine, and boiler/mach/nery. There have been no reductions in insurance coverage from prior
years.
(continued on next page) 55
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Each member's annual casualty contributions to the Podl fund current operations and a reserve fund.
Annual operating contributions are those mounts 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. During the first six years of membership,
a portion of the member's contribution is allocated to a Cumulative Reserve Fund. TherealSer, no further
annual contribution shall be made to the Cumulative Reserve Fund unless the Board shall require further
annual contributions for the purpose of maintaining the Cumulative Reserve Fund at a level equal to 300
percent of the total current members' basis rates or to comply with the reqMrements of any applicable
regulatory authority having jurisdiction over the Pool.
The PooI 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'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, 2003, were $404,978.
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 $250,000
per claim. Claims exceeding $250,000 are reinsured in an amount not to exceed $1,750,000 per claim and
$5,000,000 in aggregate per year. For members requiring specific coverage from $2,000,000 to
$15,000,000, such excess coverage is also reinsured. Automobile physical damage risks are retained by
the Pool up to $50,000 each accident, each location, with excess coverage reinsured on an individual-
member basis. All property risks are also reinsured on an individual-member basis.
The Pool's intergovernmental contract with its members provides that in the event a casualty claim or
series of claim~ exceeds the amount of risk-sharing protection provi~ted by the member's fisk-shadng
certificate, or in the event that a series of casualty claims exhausts total members' equity plus any
reinsurance and any excess risk-shafing recoveries, then payment of such claims shall be the obligation of
the respective individual member. The City does not report a liability for losses in excess of reinsurance
or excess risk-sharing recoveries unless it is deemed probable that such losses have occurred and the
amount of such loss can be reasonably estimated. Accordingly, at June 30, 2003, no liability has been
recorded in the City's financial statements. As of June 30, 2003, 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 may withdraw from the Pool at anniversary. If the notice to withdraw is within a 60 day
period of the anniversary date, the member forfeits all fights to their interest in the vested Cumulative
Reserve Fund. Upon withdrawal, payments for all clainm 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 reserve contributions. If a member withdraws after the s/xth year, the member is
reflmded 100 percent of its Cumulative Reserve Fund, 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) 56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 8 - COMMITMENTS AND CONTINGENT LIABILITIES
Grants
The City has received financial assistance from numerous federal and state agencies in the form of grants
and entitlements. The disbursement of fands received under these programs generally requires
compliance with terms and condkions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting fi.om such audits could become a liability of the general
fund or other applicable funds. However, in the opinion of management, liabilities resulting fi.om
disallowed claims, if any, will not have a material effect on the City's financial position as of June 30,
2003.
Litigation
The City's corporation counsel reported that as of June 30, 2003, 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.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2003. The City has additional commitments for signed construction contracts
of approximately $15,219,000 as of June 30, 2003. These commitments will be funded by federal and
state grants, cash reserves, and bond proceeds.
NOTE 9 -POST-EMPLOYMENT HEALTH CARE BENEFITS
In addition to providing pension benefits, the City provides certain health care benefits for retired disabled
police officers and £zrefighters as mandated by the Code of Iowa. The cost of health care benefits for
retired disabled police offiders and firefighters is recogni×ed as an expenditure as claims are paid. As of
June 30, 2003, 57 retirees were eligible for these benefits, and the cost of the benefits for the fiscal year
ended June 30, 2003, totaled $22,396.
NOTE 10 - EMPLOYEE RETIREMENT SYSTEMS
MFPRSI
The City contributes to the Municipal Fire and Police Retirement System of Iowa (the Plan), which is a
cost-sharing, multiple-employer defmed 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 £mancial
statements and required supplementary information. The report may be obtained by writing to Municipal
Fire and Police Retirement System of Iowa, 2836 104th Street, Urbandale, Iowa, 50322.
(continued on next page) 57
· CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
Plan members are required to contribute 9.35% of eamable compensation, and the City's contribution rote
may not be less than 17% of eamable compensation. Contribution requirements are established by state
statute. The City's contributions to the Plan for the years ended June 30, 2003, 2002, and 2001, were
$1,425,337, $1,338,824, and $1,327,178, respectively, winch met the required minimum contribution for
each year.
IPERS
The City contributes to the Iowa Public Employees Retirement System (IPERS) winch is a cost-sharing
multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides
retirement and death benefits winch are established by state statute to plan members and baneficiaries.
[PERS issues a publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by whting to I?ERS, P.O. Box 9117, Des
Moines, Iowa, 50306-9I 17.
Plan members are reqrfired to contribute 3.70% of their annual covered salary, and the City is required to
contribute 5.75% of annual covered payroll. Contribution requirements are established by state statute.
The City's contributions to IPERS for the years ended June 30, 2003, 2002, and 2001, were $918,374,
$834,972, and $828,947, respectively, equal to the required contributions for each year.
NOTE 11 - CONDUIT DEBT
From time to time, the City has issued Industrial Revenue Bonds to provide financial assistance to
private-sector entities for the acquisition and construction of industrial and commercial facilities deemed
to be in the public interest. The bonds are secured by the property financed and are payable solely from
payments received on the underlying mortgage loans. Upon repayment of the bonds, ownersinp of the
acquired facilities transfers to the private-sector entity served by the bond issuance. Neither the City, the
State, nor any political subdivision thereof is obligated in any maimer for repayment of the bonds.
Accordingly, the bonds are not reported as liabilities in the accompanying financial statements·
As of June 30, 2003, there were four series of Industrial Revenue Bonds outstanding, with an aggregate
principal amount payable of $8,353,474.
NOTE 12 -LANDFILL CLOSURE AND POSTCLOSURE CARE
State and federal laws and regulations require the Dubuque Metropolitan Area Solid Waste Agency to
place a final cover on each cell of its landfill site when filled and to perform certain maintenance and
monitoring functions at the site for thirty years after closure.
Although closure and postclosure care costs will be paid only near or after the date that each ceil 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
$1,904,315 reported as landfill closure and postclosure care liability at June 30, 2003, represents the
cumulative amount reported to date based on the use of 95 percent of the estimated capacity of cells 3 and
4 and the use of 55 percent of the estimated capacity of ceils 5 and 6. The Agency will recognize the
rcmaalning estimated cost of closure and postclosure care of $844,642 as the remaining capacity is filled.
(continued on next page) 58
CITY OF DUBUQUE, IOWA
NOTES TO FhNANCIAL STATEMENTS
JUNE 30, 2003
These amounts are based on what it would cost to perform ail closure and postclosure care in 2003. The
Agency expects to close cells 3 and 4 in 2004 and to close the current generation of permitted cells in
2012. The Agency is making plans to construct a second and th/rd generation of ceils to extend the life of
the landfill to 2050. Actual cost may be kigher 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 fedeml
£mancial assurance requirements. At June 30, 2003, funds have been restricted for closure and postclosure
costs in the amount of $2,748,957, which exceeds the liability currently recognized.
NOTE 13 - VISION IOWA GRANT
The City, along with the Dubuque County Historical Society, has entered into a $40 million Vision Iowa
Grant for the construction of the America's River Project. As part of the agreement, the City has issued
$12,360,000 in general obligation bonds and is to receive approximately $20 million of the grant
proceeds, with the Historical Society receiving the remaining proceeds. As of June 30, 2003, the City has
received 11 million of the grant proceeds.
NOTE 14 - ACCOUNTING CltANGE
Governmental Accounting Standards Board Interpretation No. 6, Recognition and Measurement of
Certain Liabilities and Expenditures in Governmental Fund Financial Statements was implemented
during the year ended June 30, 2003. The interpretation modifies when compensated absence liabilities
are recorded under the modified accrual basis of accounting.
Governmental Accounting Standards Board Statement No. 34, Basic Financial Statements - and
Management's Discussion and Analysis -for State and Local Governments; Statement No. 37, Basic
Financial Statements - and Management's Discussion and Analysis -for State and Local Governments:
Omnibus; and Statement No. 38, Certain Financial Statement Note Disclosures; were implemented
during fiscal year 2003. The statements create new basic financial statements for reporting the City's
fmancial activities. The financial statements now include government-wide fmancial statements prepared
on an accrual basis of accounting and fund financial statements which present information for individual
major funds rather than by fund type. Nonmajor funds are presented in total in one colunm.
The government-wide financial statements report the City's governmental activities, business-type
activities, and component unit. Governmental activities now include capital assets, the Internal Service
Fund and the changes in assets and liabilities at July 1, 2002, resulting from the conversion to the accrual
basis of accounting.
(continued on next page) 59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 15 - RESTATEMENT OF BEGINN-fiNG BALANCES
The restatement of fund balances/net assets was due to the following:
Goveramental Accounting Standards Board (GASB) Interpretation No. 6, Recognition and Measurement
of Certain Liabilities and Expenditures in Governmental Fund Financial Statements was implemented
during the year ended June 30, 2003. The interpretation modifies when compensated absence liabilities
are recorded under the modified accrual basis of accounting.
The expendable ~fts of the previously reported Library Gifts Trust fund balance were restated into the
Library Expendable Gifts Trust.
A note payable, which was inadvertently recorded as a general government liability previously, was
restated as a Sewage Disposal Works liability.
Several notes receivable, which were inadvertently expensed in the previous year, have been recorded.
Restatement of fund balances/net assets previously reported are as follows:
Fund balances/net assets
June 30, 2002, as
previously reported $21,361,226
Library Library Sewage
Commtmity Section VIII Expendable Gifts Disposal
Development Housin~ Gifts Trust Trust Works
$13,477,608 $ 453,616 $ $ 64,738 $35,814,896
Adjustments
Effect of implementing
GASB interpretation
No. 6
Effect of restatement
of expendable gifts
Effect of restatemant
of note payable
Effect of restatement
of notes receivable
386,439 7,284 26,372
325.162
44,928 (44,928)
(46,640)
Fund balances/net assets
June 30, 2002, as
restated $ 21.747.665
$13.810_054 $ 47~9_988 $ 44.928 $ 19:810 $35.768.256
NOTE 16 - SUBSEQUENT EVENT
On September 15, 2003, the City issued $2,110,000 in General Obligation Bonds to finance storm water
projects. The interest rates on the bonds range from 3.204.75% percent and the final maturity date is June
1, 2023.
(continued on next page) 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2003
NOTE 17 - NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
STANDARDS
The Governmental Accounting Standards Board (GASB) has issued two statements not yet implemented
by the City of Dubuque. The statements, which might impact the City of Dubuque are as follows:
Statement No. 39, Determining Whether Certain Organizations are Component Units, issued May 2002,
will be effective for the City for the fiscal year ending June 30, 2004. This statement amends Statement
No. 14, The Financial Reporting Entity, to provide additional guidance to determine whether certain
organizations for which the City is not £mancially accountable should be reported as component units
based on the nature and significance of their relationship with the City.
Statement No. 40, Deposit and Investment Risk Disclosures issued March 2003, will be effective for the
City for the fiscal year ending June 30, 2005. This statement addresses common deposit and investment
risks related to credit risk, concentration of credit risk, interest rate risk, and foreign currency risk.
The City's management has not yet determined the effect these Statements will have on the City's
financial statements.
61
REQUIRED SUPPLEMENTARY INFORMATION
CITY OF DUBUQUE, IOWA
SCH EOULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - BUDGETARY BASIS
GENERAL FUND
FOR THE YEAR ENDED JUNE 30, 2003
Variance with Final
Original Final Budget-Positive
Budget Budget Actual (Negative)
REVENUES
Taxes $ 17,417,330 $ 17,417,330 $ 17,195,739 $ (221,591)
Licenses and permits 866,391 866,391 745,538 (120,853)
Intergovernmental 1,567,257 5,224,985 2,I49, I37 (3,075,848)
Charges for services 8,147,846 5,169,885 5,056,960 ( I 12,925)
Fines and forfeits 395,323 395,323 4i 1,584 16,261
Investment earnings 783,753 783,753 1,018,513 234,760
Contributions 120,308 735,795 325,003 (410,792)
Gaming 5,093,954 8,297,267 9,400,210 1,102,943
Miscellaneous 515,095 549,095 494,854 (54,241 )
Total Revenues 34,907,257 39,439,824 36,797,537 (2,642,287)
EXPENDITURES
Current
Public safety 15,238,412 16,044,074 15,355,160 688,915
Public works 5,841,686 16,727,033 9,139,887 7,587,146
Health and social services 509,089 681,827 618,165 63,662
Cultare and recreation 7,174,686 9,119,003 7,283,700 1,835,304
Community and economic develol~nent 2,599,951 2,311,168 1,570,303 740,865
General goverament 3,750,604 3,772,536 3,648,925 123,611
Debt service 55,796 55,796 55,773 23
Total Expenditures 35,170,224 48,711 ~438 37,671,912 11,039,526
DEFICIENCY OF REVENUES UNDER
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Sale of capital assets
Total Other Financing Sources (Uses)
CHANGE 1N FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
(262,967) (9,271,614.) (874,375) 8,397,239
3,078,465 3,617,725 3,190,820 (426,905)
(5,423,176) (I2,595,408) (7,793,257) 4,802,151
1,692,025 1,167,239 (524,786)
(2,344,711) (7,285,658) (3,435,198)
(2,607,678) (16,557,272) (4,309,573)
19,868,670 I9,868,670 19,868,670
3,850,460
12,247,699
$ 17,260,992 $ 3,311,398 $ 15,559,097 $ 12,247,699
62
CITY OF DUBUQUE, IOWA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - BUDGETARY BASIS
EMPLOYEE BENEFITS SPECIAL REVENUE FUND
FOR ~ YEAR ENDED JUNE 30, 2003
Variance with Final
Original Final Budget-Positive
Budget Budget Actual (Negative)
REVENUES
Tmxes $ 1,924,368 $ 1,924,368 $ 1,897,825 $ (267543)
EXPENDITURES
Current
Gen~raI government
EXCESS OF REVENUES OVER
EXPENDITURES
204 53,204 51,583 1,62 I
1,924,164. 1,871, 164 1,846,243 (24,921 )
OTHER FINANCING SOURCES (USES)
Transfers in 43,872 43,872 43,872
Transfers out (1,968,036) (1,968,036) (I,873,216)
Total Other Financing Sources (Uses) (1.924,164) (1,924,164) (I,829,344)
CHANGE IN FUND BALANCES
FUND BALANCES, BEGhNN1NG
FUND BALANCES, ENDING
94,820
94,820
(53,000) I6,898 69,898
72,486 72,486 72,486
72,486 $ 19,486 $ 89,384 $ 69,89~8
63
CITY OF DUBUQUE, IOWA
SCHEDULE OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
BUDGET AND ACTUAL - BUDGETARY BASIS
COMMUNI'IY DEVELOPMENT SPECIAL REVENUE FUND
FOR THE YEAR ENDED JUNE 30, 2003
Variance with Final
Original Final Budget-Positive
Budget Budget AcmaI (Negative)
REVENUES
Intergovernmental $ 6,215,155 $ 5,946,862 $ 3,024,062 $ (2,922,800)
Investment earnings 97,493 97,493 120,517 23,024
Miscellaneous 568,863 741,864 939,831 197,967
Total Revenues 6,881,51 I. 6,786,219 4,084,410 (2,701,809)
EXPENDITURES
Current
Public works 404,187 404,187 89,848 314,340
Health and social services 142,876 142,876 127,712 15,165
Culture and recreation 126,761 159,557 143,841 15,717
Community and economic development 6,187,667 6,995,003 4,096,685 2,898,317
General government 246,265. 89,902 81,280 8,622
Total Expenditures 7,107,756. 7,791,526 4,539,366 3,252,160
DEFICIENCY OF REVENUES UNDER
EXPENDITURES
OTHER FINANCING SOURCES (USES)
Transfers in
Transfers out
Total Other Financing Sources (Uses)
CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
(226,245) (1,005,307) (454,956) 550,351
FUND BALANCES, ENDING
278,900 303,900 127,982 (175,918)
(356,645) (630,263) (54,545) 575,718
(77,745) (326,363) 73,437 399,800
(303,990) (1,331,670) (381,519) 950,151
2,158,80I 2,158,801 2,158,801
$ 1,854,8l~1 $ 827,I31 $ 1,777,282 $ 950,151
64
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -
BUDGETARY REPORTI1NG
FOR THE YEAR ENDED JUNE 30, 2003
In accordance with the Code of Iowa, the City annually adopts a budget on the cash basis of accoUnting
with an adjustment for accrued payroll following required public notice and hearing. The budget may be
amended during the year utilizhxg similar statutorily prescribed procedures.
Formal and legal budgetary control is based upon dine major classes of disbursements known as
fanetions, not by fund or fund type. Legal budgetary compliance for the City as a whole is demonstrated
in Note 2 to the financial statements.
The following are reconciliations of the budget basis to the mod/fled accrual basis of accounting:
General Fund
Modified
Budgetary Accrual Accrual
Basis Adjustments Basis
Revenues $ 36,797,537 $ (8,295) $ 36,789,242
Expenditures 37,671.912 (1,352,865) 36,319.047
Excess (deficiency) of revenues over (under)
expenditures
Other financing sources (uses)
(874,375) 1,344,570 470,195
(3.435,198) (1,990,152) (5,425,350)
Net
Fund balance, begirming, as restated
(4,309,573) (645,582) (4,955,155)
19,868,670 1,878,995 21,747,665
Fund balance, ending
$ 15.559.097 $ 1.233.41~3 $ 16.792.510
Employee Benefits Fund
Modified
Budgetary Accrual Accrual
Basis Adjustments Basis
Revenues
Expenditures
$ 1,897,825 $ (24,311) $ 1,873,514
51,583 108 51,691
Excess (deficiency) of revenues over (under)
expenditures
Other £mancing sources (uses)
1,846,243 (24,420) 1,821,823
(1.829,344) (1,829,344)
Net
Fund balance, beg/nning
16,898 (24,419) (7,521)
72,486 37.565 110,051
Fund balance, end/ng
$ 89~384 $ 13.146 $ 102.530
(continued on next page) 65
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION -
BUDGETARY REPORTING
FOR ~I'H E YEAR ENDED JUNE 30, 2003
Revenues
Expenditures
Deficiency of revenues under expenditures
Other financing sources (uses)
Net
Fund balance, beginvSng, as restated
Fund balance, ending
Community Development Fund
Modified
Budgetary Accrual Accrual
Basis Adiustments Basis
$ 4,084,410 $ (1,384,365) $ 2,700,045
4,539.366 (1,367,805) 3,171,561
(454,956) (16,560) (471,516)
73,437 312,146 385,583
(381,519) 295,586 (85,933)
2,158,801 11,651,253 13,810,054
11.946.839
66
NONMAJOR GOVERNMENTAL FUNDS
SPECIAI REVENUE FUNDS
Special revenue funds are used to account for specific revenues tlmt are legally restricted to expenditure
for particular purposes.
Road Use Tax Fund - This fund is used to account for state revenues allocated to the City for
maLatenance and improvement of City streets.
Section VIII Housing Fund - This fund is used to account for the operations of'federal Section vm
existing, voucher, and mod rehab 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 cla/ms against the City.
Police and Fire Retirement Fund - This fund is used to account for the balance of actuadally-
determined excess pension funds as calculated when local retirement systems were terminated and
combined into a statewide retirement system. The excess lands may be used to help fund the City's
portion of contributions to the statewide police and fire retirement system.
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 o£projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment f'mancing 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 o£Dubuque and the cable franchisee.
Library Expendable Gifts Trust - This fund is used to account for contributions given to the hbrary
to be spent for specific purposes.
DEBT SERVICE FUND
The debt service fired 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 account for resources used for the acquisition of fixed assets and construction of
major capital facilities other than those fmanced by proprietary ftmds and trust fimds.
Street Construction Fund - This fund is used to account for the resources and costs related to street
capital improvements.
Store Sewer Construction Fund - This fund is used to account for the resources and costs related to
storm sewer capital improvements.
Dog Track Depreciation Fund - Tiffs fund is used to account for the resources and costs related to
capita/improvements and maintenance at the greyhound racing facility.
General Construction Fund - This fond is used to account for the resources and costs related to non-
assignable capital improvements.
Airport Construction Fund - Tiffs 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 Tm/l, per trust agreement.
Library Gifts Trust Fund This fund is used to account for testamentary g/f~s to the City library.
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2003
ASSETS
Cash and pooled cash mvesmaents
Receivables
Property tax
Delinquent
Succeed/ng year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Reslricted assets
Cash and pooled cash investments
Total Assets
LIABILITIES AND FUND BALANCES
LIABILi fLES
Accounts payable
Accrued payroll
imtergovemmantal payable
Due to other funds
Deferred revenue
Succeeding year property tax
Other
Total Liabilities
FUND BALANCES
Reserved for/by
Encumbrances
Long-term notes receivable
Bond ordinance
Debt serv/ce
Dog track
Franch/se agreement
Endowments
Unreserved, reported in
Special revenue funds
Capital projects funds
Permanent funds
Total Fund Balances
Road Section VIII Tort
Use Tax Housing Liability
$ 5,994,933 $ 460,512 $
8,502
353,207 75,630
18,305
1,934
272,766
$ 6,348,140 $ 544,644 $ 293,005
272,766
341
$ 27,472 $ 34,521 $
25,367 4,147
19,265
52,839 57,933 273,107
20,363 31,812
7,802
6,274,938 447,097 19,898
6,295,301 486,711 19,898
Total Liabilities and Fund Balances $ 6,348,140 $ 544,644 $ 293,005
EXHIBIT Aq
SpecialRevenue
Police Tax Library
and Fire Special Increment Expendable Debt
Retirement Assessments Firmacing Cable TV Gifts Trust Service
$ 108,760 $ 1,610,760 $
$ 885,024 $ 70,478 $ 77,128
534,465
8,195
2,643
21,867
4,881
5,333
266,252
155 2,663
$ I08,760 $ 2,153,420 $
I50,526 19,327
153,169 $ 931,099 $ 70,633 $ 351,376
$ $ $
420,060
420,060
- $
144,518
22,957 $ 1,591 $ 350
1,584
266,252
941
144,518 24,541 1,591 267,543
150,526
86,561 303
19,327
83,833
108,760 1,733,360 (141,875) 800,670 68,739
I08,760 1,733,360
$ 108,760 $ 2,153,420
8,651 906,558
153,169 $ 931,099 $
69,042 83,833
70,633 '$ 351,376
(continued)
67
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2003
ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delinquent
Succeeding year
Accounts and other
Special assessments
Accrued interest
Notes
Intergovernmental
Restricted assets
Cash and pooled cash investments
Total Assets
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable
Accrued payroll
Intergovernmental payable
Due to other funds
Deferred revenue
Succeeding year property tax
Other
Total Liabilities
FUND BALANCES
Reserved for/by
Encumbrances
Long-term notes receivable
Bond ordinance
Debt service
Dog track
Franchise agreement
Endowments
Unreserved, reported in
Special revenue funds
Capital projects funds
Permanent funds
Total Fund Balances
C~ital
Street Storm Sewer Dog Track
Construction Construction Depreciation
$ 824,051 $ 1,034,879 $ 1,043,832
4,536 3,819 5,259
349,034 2,407
$ 1,177,621 $ 1,041,105 $ 1,049,091
$ 43,247 $ 19,464 $
43,247 19,464
1,232,550 105,404
(98,176) 916,237
1,049,091
1,134,374 1,021,641 1,049,091
Total Liabilities and Fund Balances $ 1,177,621 $ 1,041,105 $ 1,049,091
EXHIBIT A-1
(continued)
Projects
General Ah'port Sales Trax
Consm~cfion Construct/on Construction
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
$ 4,135,508 $ $ 1,509,339 $ $ $ 17,773,509
1,365
248,390
8,901
232,689
$ 4,136,873 $ 248,390 $ 1,750,929 $
287
7,267
539,018
21,867
534,465
42,704
8,502
1,261,357
73,688 19,160 262,701
73,688 $ 19,447 $ 20,451,390
$ 380313 $ 30,450 $ 6,173 $ $ - $ 566,638
31,098
19,265
228,173 372,691
539,018
421,342
380,413 258,623 6,173 1,950,052
429,758 19,805 13,465
3,326,702 (30,038) 1,731,291
10,391
653 1,940,674
7,802
150,526
83,833
1,049,091
19,327
12,000 22,391
63,297 6,794
3,756,460 (10,233) 1,744,756 73,688 19,447
9,311,587
5,846,016
70,091
18,501,338
$ 4,136,873 $ 248,390 $ 1,750,929 $ 73,688 $ 19,447 $ 20,451,390
68
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR TlqE YEAR ENDED JUNE 30, 2003
Road Section VIII Tort
Use Tax Homing Liability
REVENUES
Taxes $ $ $ 225,745
Special assessments
Intergovernmental 4,657,518 4,663,840
Charges for services
Investment earnings 1,082
Contributions
Gam/ng
Miscellaneous 13,293
Total Revenues 4,657,518 4,678,215 225,745
EXPENDITURES
Current Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
Payment of refunded bonds
Transfers in
Transfers out
Total Other Financ/ng Sources (Uses)
CHANGE IN NET ASSETS
FUND BALANCES, BEGINNinG, AS KESTATED
3,065,183
4,665,649
24,669
3,089,852 4,665,649
1,567,666 12,566 225,745
(233,59{)
(233,594)
(5,843) (224,795)
(5,843) (224,795)
1,334,072 6,723 950
4,961,229 479,988 18,948
FUND BALANCES, ENDING $ 6,295,30~1 $ 486,711 $ 1~9,898
EXItIBIT A-2
Special Revenue
Police Tax
and Fire Special Increment
Retirement Assessments Financing
Cable TV
Library
Expendable Debt
Gifts Trust Service
$ $ 2,255,539 $
561,406
104,584 21,526
33,576
550,377
1,988
60,205
665,990 2,277,065 583,953
$ 738,396
672,375
13,303
62,193 1,424,074
352,064
1,892,766
20,994
568,919
38,080
3,457
1,729,466
2,244,830 589,913 38,080 t,732,923
665,990 32,235 (5,960) 24,1t3 (308,849)
(263,872) (112,972) (158,425)
(263,872) (112,972) (I58,425)
150,000
(150,000)
174,922
(4,303)
(4,303) 174,922
(263,872) 553,018 (126,190) (10,263) 24,113 (t33,927)
372,632 1,180,342 134,84I 916,821 44,929 217,760
$ 108,760. $ 1,733,~360 $
8,651 $ 906,558 $
69,042 $ 83,833
(continued)
69
CITY OF DUBUQUE, IOWA
CONEBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
Capital
Dog Track
Depreciation
REVENUES
Taxes $ 1,947,661 $ $
Special assessments
Intergovernmental 297,780 214,654
Charges for services
Investment earnings 23,902 32,929
Contributions 62,752
Gaming 120,000
Miscellaneous 57,153 524
Total Revenues 2,365,346 239,080 152,929
EXPENDITURES
Current Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Total Expenditures
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER.) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of refunding bonds
Payment ofreftmded bonds
Transfers in
Transfers out
Total Other Financing Sources (Uses)
CHANGE IN NET ASSETS
FUND BALANCES, BEGINNING, AS RESTATED
Street Storm Sewer
Construction Construction
5,541,053 972,888
5,541,053 972,888
(3,175,707) (733,808) 152,929
802,292 1,I20,000
(142,689)
802,292 977,311
(2,373,415) 243,503 152,929
3,507,789 778,138 896,162
FUND BAJ_A2qCES, ENDING $ 1,134,374 $ 1,021,641 $ 1,049,091
EX H ~ ~IT A-2
continued)
Proiects
General Airport Sales Tax
Construction Construction Construction
$ $ $ 1,298,441
627,065 1,712,120
- 190,824
170,459 1,693
15,000
21,381 126,774
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
$ - $
56,969 (408) (362)
$ 6,465,782
561,406
12,845,352
190,824
461,241
122,957
135,000
769,502
833,905 2,031,411 1,355,410
(408)
(362) 21,552,064
22,677
674,031
1,966,989 775,350
1,874
3,065,I83
20,994
39,954
5,017,713
619,722
3,622,232
9,930,311
696,708 1,966,989 775,350 1,874
22,316,109
137,197 64,422 580,060 (2,282)
(362) (764,045)
205,954 52,970
(9,091,844)
(8,885,890) 52,970
(8,748,693) 117,392
12,505,153 (127,625)
(837,270)
(837,270)
(257,210) (2,282)
2,001,966 75,970
150,000
(150,000)
2,356,I38
(11,075,607)
(8,719,469)
(362) (9,483,514)
19,809 27,984,852
$ 3,756,460 $ (10,233) $ 1,744,756 $ 73,688 $ 19,447 $ 18,501,338
70
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operatio~ that are financed and operated in a manner similar to
private business enterprises -- where the intent of the govermnent's 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 government's council has decided that periodic determination of net income is
appropriate for accountabihty 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
COMBINENG STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2003
EXHIBIT B-1
ASSETS
Total Other
Refuse Transit Enterprise
Collection System Funds
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Property tax
Delhxquent
Succeeding year
Accounts
Intergovernmental
Inventories
Total Current Assets
CAPITAL ASSETS
Land
Buildings
Machinery and equipment
Accumulated depreciation
Net Capital Assets
$ 751,257 $ 448,309 $ 1,199,566
4,124 4,124
513,259 513,259
194,624 1,665 196,289
6,455 6,455
8,871 8,871
945,881 982,683 1,928,564
36,000 36,000
1,893,590 1,893,590
1,721,316 3,191,336 4,912,652
(984, t50) (1,777,681) (2,761,831)
737,166 3,343,245 4,080,411
Total Ass~s
LIABILITIES
1,683,047 4,325,928 6,008,975.
CURRE2~ LIABILITIES
Accounts payable
Accrued payroll
Accrued compensated absences
Deferred revenue - succeeding year property tax
Total Liabilities
NET ASSETS
Invested/n capital assets, net of related debt
Unrestricted
Total Net Assets
260,595 30,752 291,347
19,641 12,564 32,205
52,611 I9,997 72,608
513,259 513,259
332,847 576,572 909,419.
737,166 3,343,245 4,080,411
613,034 406,1II 1,019,145
$ 1,350,200 $ 3,749,356 $ 5,099,556
71
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR TH ~; YEAR ENDED JUNE 30, 2003
giT B-2
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Kevenuas
OPERATING EXPENSES
Employee expense
Util/ties
Repairs and maintenance
Supplies and services
Depreciation
Total Operat~g Expenses
OPEILATtNG LOSS
NONOPERATING REVENUES (EXPENSES)
Taxes
Intergovernmental
Loss on disposal of assets
Total Nonoperating Revenues (Expenses)
LOSS BEFORE TRANSFERS
TRANSFERS IN
TRAaNSFERS OUT
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING
NET ASSETS, ENI)ING
Total Other
Refuse Transit Enterprise
Collection System Funds
1,981,066 $ 184,756 $ 2,165,822
39 16,611 16,650
1,981,105 20t,367 2,182,472
1,256,032 859,773 2,115,805
1,086 53,062 54,148
t63,591 147,836 311,427
515,416 565,202 1,080,618
20,296 106,614 126,910
184,386 322,761 507,147
2,t40,807 2,055,248 4,196,055
(159,702) (1,853,881) (2,013,583)
506,054 506,054
880,822 880,822
(100,072) (100,072)
1,286,804 1,286,804
(159,702) (567,077) (726,779)
283,600 283,600
(8,958) (8,958)
(168,660)
1,518,860
1,3503200
(283,477) (452,137)
4,032,833 5,551,693
$ 3,749,356 $ 5,099,556
72
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
BIT B-3
CASH FLOWS FROM OPERATING ACTMTIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Property tax receipts
Intergovernmental grant proceeds
NET CASH PROVIDED (USED) BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND I~ELATED
FINANCING ACTMTIES
Acquisition and constraction of property and equipment
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) 1N CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGll4NtNG
CASH AND CASH EQUIVALENTS, ENDING
Total Other
Refuse Transit Enterprise
Collection System Funds
$ 1,997,854 $ 185,228 $ 2,183,082
(704,326) (907,610) (1,611,936
(1,253,291) (856,929) (2,110,220
39 16,611 16,650
40,276 (1,562,700)~ (1,522,424
(8,958)
283,600 283,600
(8,958)
509,190 509,190
1,080,669 1,080,669
(8,958) 1,873,459 1,864,501
(204,800) (66,164) (270,964)
7.376 7,376
(166,106) 244.595 78,489
917,363 203,714 1,121,077
751,257 $ 448,309 $ 1,199,566
(confmued)
73
CITY OF DUBUQUE, IOWA
COMBhNING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
EX H I BIT B-3
(continued)
RECONCILIATION OF OPERATING LOSS TO NET
CASH PROVIDED (USED) BY OPERATING ACTIVITIES
Operating loss
Adjusmaents to reconcile operating loss to net
cash provided (used) by operating activities
Depreciation
Change in assets and liabilities
Decrease in receivables
Increase in inventories
Decrease in accounts payable
Increase in accrued liabilities
Total Adjustmems
NET CASH PROVIDED (USED) BY OPERATTNG
ACTIVITIES
Total Other
Refuse Transit Enterprise
Collection System Funds
$ (159,702) $ (1,853,881) $ (2,013,583)
184,386 322,761 507, i47
16,788 472 17,260
(3,541) (3,541)
(3,937) (31,355) (35,292)
2,741 2,844 5,585
199,978 291,181 491,159
$ 40,276 $ (1,562,70~) ~(1,522,424)
74
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units on a cost-
reimbursement basis.
General Service Fund - This fund is used to account for en~neering, street, and general services
supplied to other departments.
Garage Service Fund - This fund is used to account for the 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 the health insurance costs of the
City.
Workers' Compensation Reserve Fund - This fund is used to account for the workers'
compensation costs of the City.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2003
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accrued interest
Inventories
Total Current Assets
CAPITAL ASSETS
Mackinery and equipment
Accumulated depreciation
Net Capital Assets
Total Assets
LIABILI'I'IES
CURRENT LIABILiTIES
Accounts payable
Accrued payroll
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Unrestricted
Total Net Assets (Deficit)
General Garage Stores/
Service Service Printing
$ 3,144 $ 1,877 $ 11,279
22,508 4,737
3,144 24,385 I6,016
125,239
(60,819)
64,420
3,144 88,805
16,016
2,722 382
12,125 12,238
12,125 14,960 382
64,420
(8,981) 9,425
$ (8,981)$ 73,845 $
I5,634
15,634
Health Workers~
Insurance Compensation
Reserve Reserve
Total
862,996 $ 793,675 $ 1,672,~71
3,925 4,131 8,056
27,245
866,921 797,806 1,708,272
125,239
(60,819)
64,420
866,921 797,806 1,772,692
757,945 281,128 1,042,177
24,363
757,945 281,128 1,066,540
64,420
I08,976 516,678 641,732
$ 108,976 $ 516,678 $ 706,15~2
EXHIBIT C-1
75
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee exper~se
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Opera~mg Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES
Investment earnings
Gain on disposal of assets
Total Nonoperating Revenues
General Garage Stores/
Service Service Print'mg
$ 981,804 $ 854,071 $ 23,296
3,334
981,804 857,405 23,296
976,459 551,415
17,191
10,021
6,754 325,996 22,654
6,412
9,068
983,213 920,103 22,654
(1,409) (62,698) 642
I21
I21
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET ASSETS
NET ASSETS (DEFICIT), BEGINNING
NET ASSETS (DEFICIT), ENDING
(1,409) (62,577)
1,817 124,746
(I,240)
642
408 60,929 642
(9,389) 12,916 14,992
$ (8,981) $ 73,845 $ 15,634
EXItlBIT C-2
Health Workers'
Iasurance Compensation
Reserve Reserve Total
$ 3,744,399 $ 124,330 $ 5,727,900
354 3,688
3,744,399 124,684 5,731,588
4,488,510 305,521
258,817 24,912
1,527,874
17,191
10,021
5,149,435
290,141
9,06~
4,747,327 330,433 7,003,730
(1,002,928) (205,749) (1,272,142)
18,366 22,935 41,301
121
18,366 22,935 41,422
(984,562) (182,814) (1,230,720)
427,076 553,639
(1,240)
(557,486) (182,814) (678,32t)
666,462 699,492 1,384,473
108,976 $ 516,678 $ 706,152
76
CITY OF DUBUQUE, IOWA
COM~INhNG STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR TI4~ YEAR ENDED JUNE 30, 2003
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers
Cash payments to suppliers for goods and services
Cash payments to employees for services
Other operating receipts
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVII ItzS
Transfers from other funds
Transfers to other ftmds
Payment of intc~fimd balances
NET,CASH PROVII)ED BY NONCAPITAL
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of property and equ/pmem
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
General Garage Stores/
Service Service Printh~g
981,804 $ 854,071
(6,754) (366,326)
(972,232) (549,300)
3,334
$ 23,296
(27,951)
2,818 (58,221) (4,655)
1,817 124,746
(1,240)
(1,491) (63,529)
326 59,977
121
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
3,t44 1,877
(4,655)
15,934
$ 3,144 $ 1,877 $ 11,279
EXI~iR1T C-3
Health
Iztsurance
Reserve
Compensation
Reserve
Total
$ 3,920,196 $
(4,597,884)
124,330 $ 5,903,697
(375,056) (5,373,971)
(1,521,532)
354 3,688
(677,688) (250,372) (988,118)
427,076
553,639
(1,240)
(65,020)
427,076 487,379
12I
22,990 26,398 49,388
(227,622) (223,974) (451,230)
1,090,618 1,017,649 2,124,201
$ 862,996 $ 793,675 $ 1,672,971
(continued)
77
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2003
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES
Operating income (loss)
General Garage Stores/
Service Service Printing
$ (1,409) $ (62,698) $ 642
Adjustments to reconcile operating income (loss) to net
cash provided (used) by opemthag activities
Depreciation
Change in assets and liabilities
Decrease in receivables
Decrease (increase) in inventories
Increase (decrease) in accounts payable
Increase in accrued liabilities
Total Adjustments
9,068
2,534 (388)
(9,240) (4,909)
4,227 2,115
4,227 4,477 (5,297)
NET CASH PROVIDED (USED) BY OPERATING
ACTIVITIES $ 2,81~8 $ (58,221~) $ (4,655)
EXI-IlllIT C-3
(continued)
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ (1,002,928) $ (205,749) $ (1,272,142)
9,068
175,797 175,797
2,146
149,443 (44,623) 90,671
6,342
325,240 (44,623) 284,024
$ (677,688) $ (250,372) $ (988,118)
78
STATISTICAL SECTION
(Unaudited)
CITY OF DUBUQUE, IOWA
GOVERNMENT-WIDE EXPENSES BY FUNCTION
JUNE 30, 2003
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Health and Commtmity
Fiscal Public Public Social Culture and and Economic Gcmeral
Year Safety Works Services Recreation Development Government
2003 (1)$ 15,817 $ 14,454 $ 816 $ 7,367 $ 9,432 $ 4,212
(I) Fiscal year 2003 was the £~rst year of reporting the City's operation on a govero_ment-wide basis.
Table I
Interest on Sewage
Long-Term Disposal
Debt Works
2~33erica ' S
Water Parking River Refuse Transit
Utility Facilities Project Collection System Total
$ 1,605$ 4,656$ 4,146$ 1,445$ 415 $ 2,141$ 2,055$ 68,560
79
CITY OF DUBUQUE, IOWA
GOVERNMENT-WIDE REVENUES
JUNE 30, 2003
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Operating Capital Unrestricted
Fiscal Charges for Grants and Grants and Investmeut
Year Services Contributions Contributions Taxes Gaming Earnings
2003 (I) $ 19,894 $ 14,558 $ 15,386 $ 26,010 $ 9,540 $ 2,071
(1) Fiscal year 2003 was the fa:st year of reporting the City's operation on a government-wide basis.
Table 2
Loss on
Sale of
Capital
Assets
Other Total
$ (318) $ 1,228 $ 88,369
80
CITY OF DUBUQUE, IOWA
GENERAL GOVERaNMENTAL EXPENDITURES BY FUNCTION (1)
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 3
Home and
Fiscal Community Hmman Community Policy and Debt
Year Protection Development Environment Administration Service
1994 $ 11,068$ 4,407 $ 11,092$ 5,456 $ 4,276
1995 11,747 5,207 9,785 2,927 3,764
1996 12,202 5,508 10,060 3,252 3,750
1997 12,082 5,856 11,050 3,891 3,492
1998 12,827 6,200 10,380 4,386 2,898
1999 13,343 6,599 15,136 3,981 2,747
2000 13,907 7,493 14,983 4,938 2,312
2001 15,064 8,653 I6,410 5,442 2,882
2002 16,386 8,520 14,361 4,986 2,637
Total
36,299
33,430
34,772
36,371
36,691
41,806
43,633
48,451
46,890
Commuaity
Health and
and Economic General
Fiscal Public Public Social Culture and DeveI- Govern- Debt
Year Safety Works Services Recreation opment ment Service
Total
2003(2)$15,279 $11,860 $ 749 $ 7,514 $ 9,011 $ 3,813 $ 3,678 $ 51,904
(1) Includes general, special revenue, and debt service funds.
(2) The State of Iowa required cities to change from programs to functions during 2003.
81
CITY OF DUBUQUE, IOWA
GENERAL GOVERNMENTAL REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 4
Special
Assess- Licenses Inter- Charges Fines Invest-
Fiscal merits and Govern- for end ment
Year Taxes (2) Permits mental Services Forfeits Earnings
1994 $20,295 $ $ 673$ t0,417 $ 3,526 $ 388 $1,438
1995 20,889 921 9,457 4,494 341 2,155
1996 2t,620 717 9,253 5,491 350 1,686
1997 24,772 507 11,454 6,637 358 1,596
1998 24,848 507 10,351 7,106 37I 1,989
t999 25,629 580 10,375 7,843 337 1,948
2000 25,562 613 12,140 7,882 341 1,813
2001 26,800 576 13,769 8,127 369 2,720
2002 26,303 703 14,124 8,847 410 1,980
2003 22,263 561 754 14,398 5,134 466 1,465
Contri-
butions (2)
385
Fiscal
Year Gain/ne (3) Miscelleneous Total
t994 $ $ 736 $ 37,473
1995 1,130 39,387
1996 765 39,882
1997 1,487 46,811
1998 1,619 46,791
1999 1,926 48,638
2000 950 49,301
2001 1,988 54,349
2002 1,526 53,893
2003 9,405 1,107 55,938
(1) Includes general, special revenue, and debt service fimds.
(2) Special assessments end contribution revenues were included in miscelleneous revenue in years prior
to 2003.
(3) Gaming revenue was included in taxes and charges for services prior to 2003.
82
CITY OF DUBUQUE, IOWA
GENERAL GOVERNMENTAL TAX REVENUES BY SOURCE (1)
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 4A
Money and State
Credits Mobile Replacement
Fiscal Property Replacement Homes Personal Prop.
Year Tax (2) Tax Tax Exemption
1994 $ 14,168 $ 38 $ 33 $ 493
1995 14,300 39 33 493
1996 14,928 40 32 472
1997 18,454 15 33 492
1998 18,562 42 37 494
1999 19,890 44 33 492
2000 20,519 45 32 492
2001 21,615 45 31 490
2002 21,020 45 31 459
2003 17,528 46 29 443
(1) Includes general, special revenue, and debt service funds.
(2) Includes gaming revenues in years prior to 2003.
Hotel
Sales Motel
Tax Tax Total
4,796 $ 767 $ 20,295
5,182 842 20,889
5,318 830 21,620
5,373 784 25,151
4,856 857 24,848
4,206 964 25,629
3,489 985 25,562
3,624 995 26,800
3,797 951 26,303
3,246 970 22,263
83
CITY OF DUBUQUE, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Percent of Delinquent
Fiscal Total Tax Current Tax Current Taxes Tax Total Tax
Year Levy (l) Collections Collected Collections Collections
1994 $ 14,851 $ 14,101 94.9% $ 161 $ 14,262
1995 14,997 14,635 97.6 116 14,751
1996 15,182 14,832 97.7 ti8 14,950
1997 t5,299 15,025 98.2 132 t5,157
1998 15,538 15,426 99.3 172 15,598
1999 16,587 16,528 99.6 121 16,649
2000 16,497 16,380 99.3 115 16,495
2001 17,163 16,662 97.1 120 16,782
2002 17,147 16,941 98.8 127 17,068
2003 15,328 15,215 99.3 216 15,432
(1) Includes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
Ratio of
Total Tax
Collections
to Total
Tax Levy
96.0%
98.4
98.5
99.1
100.4
I00.4
99.9
97.8
99.5
I00.1
Table 5
Ratio of
Outstanding Delinquent
Delhaquent Taxes to Total
Taxes Tax Levy
956 6.4%
245 1.6
232 1.5
274 1.8
138 0.9
129 0.8
138 0.8
150 0.9
238 1.4
130 0.8
84
CITY OF DUBUQUE, IOWA
ASSESSED AND ESTIMATED ACTUAL VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAtmrrED)
Table 6
Real Property Exemptions Total
Fiscal Assessed Estimated Real Assessed Estimated
Year Value Actual Value Property Value Actual Value
1994 $ 997,573 $ 1,229,395 $ 10,681 $ 986,892 $ 1,229,395
1995 1,127,153 1,450,026 10,642 1,116,511 1,450,026
1996 1,151,187 1,487,208 10,467 1,140,720 1,487,208
1997 1,237,246 1,750,830 10,405 1,226,841 1,750,830
1998 1,259,649 I}776,342 10,218 1,249,431 1,776,342
1999 1,354,421 1,987,466 10,319 1,344,102 1,987,466
2000 1,389,352 1,990,428 10,018 1,379,334 1,990,428
2001 1,377,518 2,014,897 10,194 1,367,324 2,014,897
2002 1,429,025 2,047,186 10,097 1,418,928 2,047,186
2003 1,540,206 2,3t7,926 10,141 1,530,066 2,307,785
Ratio of Total
Assessed
Value to
Total
Estimated
Actual Value
80.27%
77.00
76.70
70.07
70.34
67.62
69.30
67.86
69.31
66.31
85
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPhNG GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER $1,000 ASSESSED VALUE
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 7
Board
Dubuque of Education
Fiscal Dubuque School and Area 1
Year City District Independents Voc. Tech
Dubuque
County
Ratio of
Dubuque
City
Total to Total
1994 $12.60588 $13.92886 $ .50303 $ .47495 $ 7.61714 $35.12986 35.88%
t995 11.78206 13.60398 .53777 .49222 6.95885 33.37488 35.30
1996 11.78215 13.70668 .74972 .49360 6.13169 32.86384 35.85
1997 11.38153 12.39251 .70548 .50348 5.87236 30.85536 36.89
1998 11.40112 12.03974 .52563 .49951 5.54113 30.00713 37.99
1999 tl.07340 11.98226 .50368 .48592 5.52169 29.56695 37.45
2000 11.15945 11.53111 .66882 .55128 5.54016 29.45082 37.89
200I 11.93556 13.50444 .54806 .57072 5.73669 32.29547 36.96
2002 11.85631 13.73882 .55492 .57507 5.60064 32.32576 36.68
2003 11.99116 13.84768 .61686 .57791 5.59515 32.62876 36.75
Source: Dubuque County Auditor's Office.
86
CITY OF DUBUQUE, IOWA
PRINCIPAL TAXPAYERS
PAYABLE FISCAL YEAR 2003
(AMOIYNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 8
Taxpayer Type of Business
Kennedy Mai1 Shopping Center $ 23,588 .98%
Medical Associates Realty Health Services 21,080 .88
Otto A LLC Manufacturing 17,512 .73
Nordstrom, Inc. Warehouse Distributor 14,889 .62
Plaza 20, Inc. Shopping Plaza 10,041 .42
U.S. West Communications Telecommunications 9,422 .39
Wal-Mart Retail Sales 9,137 .38
Minglewood LLm/ted Partnership Pension Services 8,944 .37
American Trust and Savings Bank Bank 8,640 .36
McGraw Hill Publ/shing 7,702 .32
Totals $ 130.955 5.45%
2001 Percentage of
Assessed Total Assessed
Valuation Valuation
Source: Dubuque County Auditor's Office.
Alliant Energy Power Company and Peoples Natural Gas Company are not on the above schedule.
Effective 2001 utility companies pay excise tax on revenue to the state rather than property taxes.
87
CITY OF DUBUQUE, IOWA
SPECIAL ASSESSMENT BILLINGS AND COLLECTIONS
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 9
Fiscal Special Assessment Special Assessment
Year BillLngs Collected (1)
1994 $ 44 $ 339
1995 51 6O9
1996 33 147
1997 41 378
1998 73 179
1999 67 644
2000 67 203
2001 82 698
2002 87 657
2003 89 558
(1) Includes prepayments.
88
CITY OF DUBUQUE, IOWA
COMPUTATION OF LEGAL DEBT MARGIN
JUNE 30, 2003
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 10
Actual Valuations
$~2~317.92~6
Legal debt marg/n:
Debt limitation - 5% of actual valuations
Debt applicable to limitation:
Total bonded debt
Less: Revenue bonds
Total debt applicable to 1kmitation
Legal debt margin
31,811
(1,540)
$ 115,896
30,271
85.625
89
CITY OF DUBUQUE, IOWA
RATIO OF NET GENERAL OBLIGATION BONDED DEBT TO ASSESSED
VALUE AND NET GENERAL OBLIGATION BONDED DEBT PER CAPITA
LAST TEN FISCAL YEARS
(UNAUDITED)
Table 11
Ratio of
Net Bonded Net
Net Debt to Bonded
Fiscal Population Assessed Bonded Assessed Debt Per
Year (1) * Value (2) * Debt (3) * Value Capita
1994 58 $ 986,892 $ 17,125 1.74% $ 295
1995 58 1,116,5II I4,775 1.32 255
1996 59 1,140,720 t4,200 1.24 241
1997 59 1,226,841 11,755 0.96 199
1998 59 1,249,431 10,795 0.86 183
1999 56 1,344,102 8,545 0.64 153
2000 56 1,379,334 10,511 0.76 188
2001 58 1,367,324 9,005 0.66 155
2002 58 1,418,928 20,945 1.48 361
2003 58 1,530,066 19,865 1.30 343
* Amounts expressed in thousands.
(1) U.S. Census Bureau.
(2) From Table 6.
(3) From Table 13. Amount does not include revenue bonds.
9O
CITY OF DUBUQUE, IOWA
RATIO OF ANNUAL DEBT SERVICE EXPENDITURES
FOR GENERAL OBLIGATION BONDED DEBT TO TOTAL
GENERAL GOVERNMENTAL EXPENDITURES
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 12
Total
Fiscal Debt
Year Principal Interest (1) Service
Total
General
Governmental
Expenditures
(2)
1994 $ 2,315 $ 908 $ 3,223
1995 2,350 915 3,265
1996 2,435 757 3,192
I997 2,445 740 3,185
t998 2,150 551 2,701
1999 2,060 438 2,498
2000 1,655 320 1,975
2001 1,974 219 2,193
2002 1,346 132 1,478
2003 1,729 882 2,611
36,299
33,430
34,772
36,371
36,691
41,806
43,633
48,451
46,890
51,904
(t) Excludes bond issuance and other costs.
(2) Includes general, special revenue, and debt service funds.
Ratio of
Debt Service to
General Governmental
Expenditures
8.88%
9.77
9.18
8.76
7.36
5.98
4.53
4.53
3.15
5.03
91
CITY OF DUBUQUE, IOWA
COMPUTATION OF DIRECT AND OVERLAPPING BONDED DEBT
GENERAL OBLIGATION BONDS
JUNE 30, 2003
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 13
Jurisdiction
Net General Percentage
Obligation Applicable Amount
Bonded Debt to Applicable
Outstanding Government to Government
Direct:
City of Dubuque
$ 19,865 (1) 100.00% $ 19,865
$ 19.865 $ 19.865
Total
(1) Excluding general obligation bonds reported in the enterprise funds.
92
CITY OF DUBUQUE, IOWA
REVENUE BOND COVERAGE
PARKING BONDS
LAST TEN FISCAL YEARS
(AMOUNTS EXPRESSED IN THOUSANDS)
(UNAUDITED)
Table 14
Net
Revenue
Gross Operating Available
Fiscal Revenues Expenses For Debt Debt Service Requ/rements
Year (1) (2) Service Principal Interest Total
Coverage
(3)
1994 $ 1,090 $ 543 $ 547 $ 90 $ 212 $ 302 1.81
1995 1,108 592 516 95 205 300 1.72
1996 1,152 631 521 105 198 303 1.72
1997 1,175 551 624 110 191 301 2.07
1998 1,268 570 698 150 195 345 2.02
1999 1,303 584 719 I55 98 253 2.84
2000 1,278 582 696 165 93 258 2.70
2001 1,552 717 835 170 86 256 3.26
2002 1,452 737 715 180 79 259 2.76
2003 1,484 847 636 190 71 261 2.44
(1) Total revenues (including interest).
(2) Total operating expenses exclusive of depreciation.
(3) Coverage is computed by dividing net revenue available for debt service by debt service
requirements. Bond ord/nance requires 1.3 minimum coverage.
93
CITY OF DUBUQUE, IOWA
PROPERTY VALUE, CONSTRUCTION PERMITS, AaND BANK DEPOSITS
LAST TEN FISCAL YEARS
(UNAUDITED)
Table 15
Fiscal
Year
Property Value* Bank Deposits (2)
Number
of Calendar Total
Other (3~ Residential Total (1) Permits Value* Year Deposits*
Construction Permits
1994 $ 381,324 $ 848,071 $ 1,229,395 1,862 $ 56,928 1993 $ 852,000
1995 441,399 1,008,627 1,450,026 6,918 * 65,599 1994 883,000
1996 456,075 1,031,133 1,487,208 4,190 75,569 1995 902,659
1997 519,104 1,231,726 1,750,830 2,039 34,950 1996 901,724
I998 521,327 1,255,015 1,776,342 1,572 35,647 1997 701,402®
I999 589,760 1,397,706 1,987,466 1,500 58,309 1998 782,248
2000 586,318 1,404,110 1,990,428 1,502 78,500 1999 842,165
2001 593,085 1,421,812 2,014,897 1,448 72,073 2000 934,240
2002 610,673 1,436,513 2,047,186 1,338 115,398 2001 1,019,491
2003 738,823 1,579,103 2,317,926 1,363 88,769 2002 1,078,409
* Amounts expressed in thousands.
(I) Estimated acttml value from Table 6.
(2) Source: Federal Deposit Insurance Corporation.
(3) Commercial, Industrial, and Utilities.
· Hail and wind storm in August 1994, caused extensive roof and siding damage throughout the City,
greatly increasing permit activity.
® In 1998, two major banks in the City were consolidated into larger bank corporations; deposits were
recorded only at source of charter.
94
CITY OF DUBUQUE, IOWA
DEMOGRAPHIC STATISTICS
LAST TEN FISCAL YEARS
(UNAUDITED)
Table 16
Fiscal
Year
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
Data Sources:
(1)
(2)
(3)
(4)
(5)
(4)
(2) (3) Public
(1) Per Capita Median School
Population Income Age Em:ollment
57,538 $ 19,110 34
57,538 20,113 34
59,084 21,755 34
59,084 22,096 34
59,084 23,293 34
56,467 24,499 34
56,467 25,645 34
57,686 19,616 34
57,686 19,616 37
57,686 * 37
Bureau of Census; 2000 Census.
U.S. Department of Commerce, Bureau of Econondc Analysis.
Bureau of Census; 2000 Census.
Dubuque Community School District
Iowa Department of Employment Services.
Unavailable at report date.
I0,022
I0,133
I0,065
9,985
9,857
9,735
9,697
9,680
9,906
10,122
(5)
Unemployment
Rate
4.3%
3.8
4.8
4.7
3.1
3.1
2.7
3.4
3.6
3.7
95
CITY OF DUBUQUE, IOWA
SCHEDULE OF INSUI~4NCE IN FORCE
JUNE 30, 2003
LIABILITY INSURANCE
Iowa Communities Assurance Pool
Iowa Commurfities Assurance Pool
Expiration
Policy Number Date
17041901414000003 7/1/03
17035901414000003 7/1/03
Details of Coveraze
Municipal General Liability
Includes EMT's and
Ambulance Service
Municipal Auto Liability
Includes Transit Liability
Iowa Communities Assurance Pool 17015901414000003 7/1/03 Comprehensive & Collision
Iowa Communities Assurance Pool 17039901414000003 7/I/03 Public Official Liability
Iowa Communities Assurance Pool 11)040891414000003 7/1/03 Police Professional
Zurich Insurance Co.
GPL3783561 ~02 4/15/04
Environment Liability
Lead Pollution
ACE USA
AAPN 00036572
7/1/03 Airport Liability
Northland Casualty Co.
AY070043
7/1/03 Public Officials Liability
St. Paul Fire & Marine Insurance
Company
Mount Vernon Fire Insurance Co.
Mount Vernon Fire Insurance Co.
EM06649597 8/1/03
CL2236323A 8/1/03
CL2231997B 4/16/04
Professional Liabihty-
Nurses
Dram Shop Liability-
Five Flags
Dram Shop Liability-
BunkerHill
Table 17
Annual
Liabiliw Limits Premium
$ 5,000,000 Each Occurrence $ 404,978*
100,000 Aggregate Per Year
10,000 Deductible Per Occurrence
5,000,000 Each Accident
I00,000 Aggregate
10,000 Deductible Per Accident
Per Scheduled
Motor Vehicles
5,000,000 Each Claim
100,000 Aggregate
10,000 Deductible Per Claim
5,000,000 Per Person/Agg.
100,000 Aggregate
10,000 Deductible Per Claim
1,000,000 Each Occurrence
1,000,000 Aggregate
5,000 Deductible
7,575
20,000,000 Aggregate Limit
2,500 Deductible
15,000 Deductible Aggregate
48,295
5,000,000 Each Occurrence/Aggregate 7,815
i0,000 Deductible
1,000,000 Each Person 175
3,000,000 Total Limit
3,000,000 Each Common Cause/Aggregate 6,834
3,000,000 Each Common Cause/Aggregate
4,515
(continued)
* Includes the premiums for all poticies of the Iowa Communities Assurance Pool.
96
CITY OF DUBUQUE, IOWA
SCE[EDULE OF INSURANCE IN FORCE
JUNE 30, 2003
Insurer
PROPERTY INSURANCE
Cincinnati Insurance Co.
Policy Number
Expiration
Date
CAP769 5890
Details of Coverage
7/1/03 Comprehensive Business
Policy
CRIME INSURANCE
Allied Insurance
Travelers Insurance Co.
BD7900575274
103338754
7/1/03
7/1/03
Public Official Bond
Public Official Bond
BOILER INSURANCE
Cincinnati Insurance Co.
BUILDERS RISK
St. Pad Insurance Co.
BEP 264 96 23
7/1/03
Boiler & Machinery
CF06301129
6/1/04
Grand River Center
Cincinnati Insurance Co. CAP5496966 3/1/04 New Water Tower
Table 17
(continued)
Liability Limits
Annual
Prem/um
122,087,052
I0,000
20,000
20,000,000
996,670
1,695,000
3,652,197
317,347
252,560
Building & Contents
Deductible Per Occurrence
Aggregate Per Year
Earthquake
Business Interruption
EDP Equipment
Mobile Equipment
Camera Equipment
Paintings
140,221
I00,000
90O,0O0
900,000
900,000
900,000
All Employees
City Manager
Finance Director
Assistant Finance Director
Administrative Service Manager
3,100
1,284
2,500,000 Per Accident
5,000 Deductible
56,876
24,000,000 Per Project
10,000 Deductible
1,033,000 Per Project
10,000 Deductible
Two year policy
50,422
2,930
97
CITY OF DUBUQUE, IOWA
MISCELLANEOUS STATISTICS
JUNE 30, 2003
(UNAUDITED)
Table 18
Date of Incorporation
Form of Government
Population - 2000 Cemmas
Number of employees:
Full Time
Part Time/Seasonal
Area in square miles
City of Dubuque facilities and serv/ces:
M/les of streets
Number of street lights
Number of traffic signals
Culture and Recreation:
Parks
Park acreage
Golf comes
Swimming Pools
Civic Center
F/re Protection:
Number of stations
Number of fire personnel and officers
Police Protection:
Number of stations
Number of police personnel and officers
Sewerage System:
Miles of sanitary sewers
Miles of storm sewers
Number of treatment plants
Number of service connections
Daily average treatment in gallons
Maximum daily capacity of treatment plant in gallons
Water System:
Miles of water mains
Number of service connections
Number of fire hydrants
Daily average consumption in gallons
Max/mm daily capacity of plant in gallons
Public Transit System
Facilities and services not included in the reporting entity:
Education:
Number of elementary schools
Number of secondary schools
Number of colleges
Number of un/versities
Number of theological seminaries
Hospitals:
Number of hospitals
Number of licensed patient beds
1837
Counc/l/Manager - Ward
57,686
5O8
282
28.3
273.2
1,500
109
42
850
I
2
1
6
90
1
98.25
167
150.5
1
20,800
8,000,000
15,000,000
304.87
21,032
2,713
8,000,000
18,000,000
Vehicles- 28
18
7
4
i
2
2
584
98
COMPLIANCE SECTION
EideBailly=
Consultants · Certified Public Accountants
REPORT ON COMPLIANCE AND ON hNTERNAL CON'IROL OVER
FINANCIAL REPORTING BASED ON AN AUDIT OF FINANCIAL
STATEMENTS PERFORMED IN ACCORDANCE WITH
GO VERNMENT AUDITING S T~DARDS
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the financial statements of the City of Dubuque, Iowa, as of and for the year ended
June 30, 2003, and have issued our report thereon dated December 16, 2003. We conducted our audit in
accordance with auditing standards generally accepted in the United States of America; Chapter 11 of the
Code of Iowa; and the standards applicable to financial audits contained in Government Auditing
Standards, issued by the Comptroller General of the United States.
Compliance
As part of obtaining reasonable assurance about whether the City's financial statements are flee of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grants, non-compliance with which could have a d/rect and material effect on the
determination of financial statement mounts. However, provid/ng 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 that are required to be reported under
Government Auditing Standards. However, we noted a certain immaterial instance of non-compliance that
is 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, 2003, are based exclusively on knowledge obtained fi:om 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
prior year statutory comment bas been resolved.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City's internal control over financial reporting in
order to determine our auditing procedures for the purpose of expressing our opidion on the financial
statements and not to provide assurance on the internal control over financial reporting. Our consideration
of the internal control over financial reporting would not necessarily disclose all matters in the internal
control over financial reporting that might be material weaknesses. A material weakness is a condition in
which the design or operation of one or more of the internal control components does not reduce to a
relatively Iow level the risk that misstatements in amounts that would be material in relation to the
financial statements being audited may occur and not be detected within a timely period by employees in
the normal course of performing their assigned functions. We noted no matters involving the internal
control over financial reporting and its operation that we consider to be material weaknesses. However,
we noted other matters involving the internal control over financial reporting that we have reported to
management of the City of Dubuque, Iowa, in a separate letter dated December 16, 2003. There were no
prior year reportable conditions to be resolved.
99
3999 Permsflvania Ave. · Suir~ II30 · Dubuque, Iowa 52002-2639 · 563.556.1790 · Fax 563.55L7842
OJ}~es in Ar/zon~ Iowa, Minnesota, Montana, North Dakota and Soutt~ Dakota · Equal Opportunity Employer
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. This report is not intended to be and should not be used by anyone other than these
specified parties.
We would like to acknowledge the many courtesies and assistance extended to us by personnel of the City
of Dubuque, Iowa, during the course of our audit. Should you have any questions concerning any of the
above matters, we shall be pleased to discuss them with you at your convenience.
Dubuque, Iowa
December 16, 2003
100
EideBailly=,
Consultants · Certified Public Accountants
REPORT ON COMPLIANCE WITH REQUIREMENTS APPLICABLE TO
EACH MAJOR PROGRAM AND h'CI~RNAL CONTROL OVER
COMPLIANCE IN ACCORDANCE WITH OMB CIRCULAR A-133
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Compliance
We have audited the compliance of the City of Dubuque, Iowa, with the types of compliance
requirements described in the ~S. Office of Management and Budget (OMB) Circular A-133 Compliance
Supplement that are applicable to each of its major federal programs for the year ended June 30, 2003.
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. Comphance with the
requirements of laws, regulations, contracts, and grants 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; Chapter 11 of the Code of Iowa; the standards applicable to financial audits
contained in Government Auditing Standards, issued by the Comptroller General of the United States; and
OMB Circular A-133, Audits of States, Local Governments, and Non-Profit Organizations. Those
standards and prov/sions 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 pro=oran occurred. An audit includes examining, on a test
basis, evidence about the City's compliance with those mqnirements 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,
2003. However, the results of our audifmg procedures disclosed an instance of noncompliance with those
requirements that are required to be reported in accordance with OMB Circular A-133 and which is
described in the accompanying Schedule of Findings and Questioned Costs as item II-A-03.
Internal Control Over Compliance
The management of the City of Dubuque, Iowa, is responsible for establishing and maintaining effective
internal control over compliance with requirements of laws, regulations, contracts, and grants applicable
to federal programs. Irt planning and performing our audit, we considered the City's internal control over
compliance with requirements that could have a direct and matmSal effect on a major federal program in
order to determine our auditing procedures for the purpose of expressing our opinion on compliance and
to test and report on the internal control over comphance in accordance with OMB Circular A-133.
3999 Pennsyl,~arda Ave. · Suite 100" Dubu~e, Iowa 52002-2639 · 563.556.1790 · Fc, x 563.557.7842
Ojrflces in Arizona, Io~a, Minnesota, Montana, Nor:h Dakota and South Dakota · Equal Opportani~ Employer
101
Our consideration of the internal control over compliance would not necessarily disclose all matters in the
internal control that m/ght be mater/al weaknesses. A mater/al weakness is a condition in which the
design or operation of one or more of the internal control components does not reduce to a relatively low
level the risk that non-compliance with applicable requirements of laws, regulations, contracts, and grants
that would be material in relation to a major federal program be/rig audited may occur and not be detected
within a timely period by employees in the normal course of performing their assigned functions. We
noted no matters involving the internal control over compliance and its operation that we consider to be
material weaknesses.
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. 2qfis report is not
intended to be and should not be used by anyone other than these specified parties.
Dubuque, Iowa
December 16, 2003
102
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
]FOR THE FISCAL YEAR ENDED JUNE 30, 2003
Grantor/Pro~ram
CFDA Agency or
Number Pass-Throu~h Number
Direct:
Department of Homing and Urban Development:
Community Development Block Grants/
Entitlement Grants
14.218
B-XX-MC-19-0004
Commun/ty Development Block Grants/
Special Purpose Grants/Technical
Assistance Program
14.227 SPG-IA-05SPG23
Community Development Block Grants/
Economic Development Initiative
14.246 B-SP-IA-0178
Fair Housing Assistance Program - State
and Local
14.401 FF207K027006
Lower Income Housing Assistance
Program - Section 8 Moderate
Rehabilitation
Lower Income Housing Assistance
Program - Section 8 Moderate
Rehabilitation
Lower Income Housing Assistance
Program - Section 8 Moderate,
Rehabilitation
Lower Income Housing Assistance
Program- Section 8 Moderate
Rehabilitation
14.856
14.856
14.856
14.856
KC-9004MR~002
KC~9004MR-001
KC-9004MR-005
KC-9004MR-007
KC-9004V
IALAG0066-97
I999BUBX990
2001SHWX0414
2000SHWX0668
Section 8 Housing Choice Vouchers
Lead-Based Paint Hazard Control in
Privat ely-Ovnaed Housing
Departraent of Justice:
Bulletproof Vest Partnership Program
Public Safety Partnership and Commlmity
Policing Grants
Public Safety Partnership and Community
Policing Grants
14.871
14.900
16.607
16.710
16.710
Program
Expenditures
$ 1.792.515
34,500
77,066
82,456
17,266
25,438
260,021
3,770
306,495
4;313.625
930,176
11.623
40,113
30.673
70.786
(continued)
103
CITY OF DUBUQUE, IOWA
SC]ffEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR 'l'H v; FISCAL YEAR ENDED JUNE 30, 2003
Grantor/Pro,ram
Direct: (continued)
Department of Transportation:
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
Airport Improvement Program
CFDA Agency or
Number Pass-Tttrou~h Number
20.106 3-I9-0028-26
20.106 3-19-0028-30
20.106 3-19-0028-31
20.106 3-19-0028-29
20.106 3-19-0028-25
20.106 3-19-0028-27
Federal Transit - Capital Investment Grants
Federal Transit - Formula Grants
Environmental Protection Agency:
Brownfield Assessment and Cleanup
Cooperative Agreements
Federal Emergency Management Agency:
Assistance to Firefighters Grant
Total Direct
Indirect:
Department of Justice:
Governor's Office of Drug Control Policy
and Dubuque County, Iowa:
Byme Formula Grant Program
20.500 IA-03-0097-00
20.507 IA-90-X262
66.818 BP98719701
83.554
16.579 02A-0218
Violence Against Women Formula Grants 16.588 01V-0205
Violence Against Women Formula Grants 16.588 02V-0234
Department of Transportation:
Iowa Department of Transportation:
Federal Transit- Capital Investment Grants 20.500
Federal Transit- Capital Investment Grants 20.500
Federal Transit- Capital Investment Grants 20.500
Federal Transit- Capital Investment Grants 20.500
EMW-2002-FG-01657
03-0094-210-22
03-0095-210-02
03-0085-210-00
03-0093-210-01
Job Access - Reverse Commute
20.516 37-X006-210-01
Program
Expenditures
$ 118,309
290,142
924,437
6,306
59,305
42,782
1.441,281
90,976
556,885
647,861
10,545
31,640
9,750,569
3,123
2,320
1,992
4,312
6,455
7,820
5,025
39,751
59,051
12,398
(continued)
104
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR It:LE FISCAL YEAR ENDED JUNE 30, 2003
Grantor/Prom:am
CFDA Agency or Program
Number Pass-Through Number Expenditures
Indirect: (continued)
Department of Transportati0n: (continued)
Governor's Traffic Safety Bureau:
State and Community Highway Safety
State and Community Highway Safety
State and Community Highway Safety
20.600 PAP 03-02, TASK 05 $ 20,413
20.600 PAP 02-02, TASK 05 10,445
20.600 PAP 02-164, TASK 32 15,135
45,993
Alcohol Traffic Safety and Drank Driving
Prevention Incentive Grants
20.601 PAP 03-410 TASK 12 7,681
Federal Emergency Management Agency:
Iowa Department of Public Defense:
Public Assistance Grants
Hazard Mitigation Grant
Hazard Mitigation Grant
83.544 FEMA-DR-1420-IA 55,592
83.548 1420-0002 196,525
83.548 HMGP 0996-0185 38
Department of Health and Human Services:
Iowa Department of Public Health:
Childhood Lead Poisoning Prevention
Projects - State and Local Ch/ldhood
Lead Poisoning Prevention and
Surveillance of Blood Levels in
Children
Total indirect
93.197 5883LP06
Total
196,563
20,409
405.122
$ I0.155.69~1
See notes to the Schedule of Expenditures of Federal Awards. 105
CITY OF DUBUQUE, IOWA
NOTES TO TH I~; SCltEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE~ FISCAL YEAR ENDED JUNE 30, 2003
NOTE 1 - BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant acti,Aty of the
City of Dubuque, Iowa, and is presented in conformity with the modified accrual basis of accounting. The
information on this schedule is presented in accordance with the requirements of O5/113 Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations. Therefore, some mounts presented
in this schedule may differ from amounts presented in, or used in the preparation of, the basic f'mancial
statements.
NOTE 2 - SUBRECIPIENTS
Of the federal expenditures presented in the schedule, the City of Dubuque, Iowa, provided federal
awards to subrecipients as follows:
Federal Amount Provided
Pro,am Title CFDA Number to Subrecipients
Community Development Block Grants/
Entitlement Grants
14.218 $ 207,287
106
CITY OF DUBUQUE, IOWA
SCH2EDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE FISCAL YEAR ENDED JUNE 30, 2003
Part I: Summary of the Independent Auditor's Results:
(a) An unqualified opinion was issued on the £mancial statemeats.
(b) No reportable conditions in internal control over financial reporting were identified.
(c) The audit did not disclose any non-compliance which is material to the financial statements.
(d) No reportable conditions in internal control over major programs were identified.
(e) An unqualified opinion was issued on compliance with requirements applicable to each major
program.
(f) The audit disclosed an audit finding which is required to be reported in accordance with Office
of Management and Budget Circular A-133, Section .510(a).
(g) Major programs were as follows:
· CFDA Number 14.218 - Community Developmant Block Grants/Entitlement Grants
· CFDA Number 20.106 - Airport Improvement Program
· CFDA Number 20.500 - Federal Transit - Capital Investment Grants
· CFDA Number 20.507 - Federal Transit - Formula Grants
(h) The dollar threshold used to distinguish between Type A and Type B programs was $304,671.
(i) The City of Dubuque, Iowa, qualified as a low-risk auditee.
Part H: Findings and Questioned Costs for Federal Awards:
INSTANCE OF NON-COMPLIANCE
CFDA Number 14.218: Community Development Block Grants/Entitlement Grants
Grant Number: B-XX-MC-19-0004
Department of Housing and Urban Development
II-A-03 Construction Contract Compliance - The City provided one of its subrecipients with CDBG
funds to assist them with the construction of an apartment building. Since federal funds were
used to fund part of this project, the City was required to comply with Section 36 of
Government Document Number 10 (A-102 Common Rule). Section 36 of A-102 Common
Rule states that contracts should contain required federal language to comply with federal
laws and regulations. In reviewing the constmction contract and bid spec/fications, the
required federal language was not included.
Recommendation - We recommend that in the furore, the required federal language be
included in the contracts and bid specifications where federal funding is involved. In addition,
City staff will need to develop procedures to ensure famre compliance.
107
CITY OF DUBUQUE, IOWA
SCH lq;OLrLE OF FINDINGS AND QUESTIONED COSTS
FOR TH Iq; FISCAL YEAR ENDED JUNE 30, 2003
Part 1I: Findings and Questioned Costs for Federal Awards:(continued)
Response - The required federal contract language has been provided to all CDBG
subrecipients responsible for construction projects. Subrecipient monitoring procedures have
been changed to include review of bid documents and contracts to ensure compliance with
this requirement.
Conclusion - Response accepted.
Part Ill: Other Findings Related to Statutory Reportinm
III-A-03
Official Depositories - A resolution naming official depositories has been approved by the
City Council. The maximum deposit mounts stated in the resolution were not exceeded
during the year ended June 30, 2003.
III-B-03 Certified Budget - Function disbursements during the year ended June 30, 2003, did not
exceed the amounts budgeted.
ffi-C-03 Questionable Expenditures - We noted no expenditures which fail to meet the reqmrements
of public purpose as de£med in an Attorney General's op/nion dated April 25, 1979.
III-D-03 Travel Expense - No expenditures of city money for travel expenses of spouses of City
officials or employees were noted.
III-E-03 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 Zeuner, employee, owner of
building
Building rent $ 3,540
Jan Anderson, employee, spouse
is owner of Anderson Design &
Consulting, Inc.
Architect services $ 7,391
In accordance with Chapter 362.5(t0) of the Code of Iowa, the transactions with John Zenner
do not appear to represent a conflict of interest since the transactions were entered into
through competitive bidding. The remaining transactions were not entered into through
competitive bidding and may represent conflicts of interest.
Recommendation - The City should consult legal counsel to detenrdne the disposition of this
matter.
Response - Finance management will ren~nd City department managers of Chapter
362.5(I0) of the Code of Iowa requirements, stating that business transactions totaling $1,500
or more in a fiscal year between the City and City officials or employees be competitively
bid.
Conclusion - Response accepted.
108
CITY OF DUBUQUE, IOWA
SCIJLEDULE OF FINDINGS AND QUESTIONED COSTS
FOR TH tq; FISCAL YEAR ENDED JUNE 30, 2003
Part HI: Other Findings Related to Statutory Reporting: (continued)
III-F-03
Bond Coverage - Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The mount of coverage should be reviewed annually to insure that the
coverage is adequate for current operations.
m-G-03 Council Minutes - No transactions were found that we believe should have been approved in
the Council minutes but were not.
III~H-03
Deposits and Investments - No instances of non-compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City's investment policy
were noted.
m-i-03 Revenue Bonds - No instances of non-compliance with the provisions of the City's revenue
bond resolutions were noted.
llI-J-03
Solid Waste Fees Retain_age - 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.3 t 0(2) of the Code of Iowa.
109