Comprehensive Annual Financial Report (CAFR)Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
DATE: February 1, 2011
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe Finance Director
Mic ael C. Van Milligen
Dubuque
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AD4medcaCIty
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2007
SUBJECT: Submission of Fiscal Year Ended June 30, 2010 Comprehensive Annual
Financial Report (CAFR), Internal Control Letter, Management Letter and
Response to Management Letter
Finance Director Ken TeKippe is transmitting the Fiscal Year 2010 Comprehensive
Financial Report (CAFR), Internal Control Letter and Management Letter, along with the
City Finance staff's response. The City's independent auditor issued an unqualified
opinion on the financial statements.
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Submission of Fiscal Year Ended June 30, 2010 Comprehensive Annual
Financial Report (CAFR), Internal Control Letter, Management Letter and
Response to Management Letter
DATE: January 31, 2011
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2010 CAFR audited by
Eide Bailly, LLP, Internal Control Letter and Management Letter along with the City
Finance staffs response. The City's independent auditor issued an unqualified opinion
on the financial statements.
BACKGROUND
Dubuque
hfrall
All-America City
2007
State code requires an annual audit by independent certified public accountants or the
State Auditor. In addition to meeting the requirements set forth in state statues, the
audit also was designed to meet the requirements of an annual single audit in
conformity with the U.S. Office of Management and Budget Circular A -133, Audits of
States, Local Governments and Non - Profit Organizations.
This Comprehensive Annual Financial Report is in conformance with the standards set
by OMB Circular A -133. This federal regulation mandates audit standards for federal
programs.
The government -wide financial statements are reported using the economic resources
measurement focus and the accrual basis of accounting, as are the proprietary fund
and fiduciary fund financial statements. Governmental fund financial statements are
reported using the current financial resources measurement focus and the modified
accrual basis of accounting.
Separate financial statements are required for Dubuque Metropolitan Area Solid Waste
Agency and Dubuque Initiatives and Subsidiaries and have been received. The
financial information for these entities is included in the City of Dubuque CAFR.
AUDITOR'S MANAGEMENT LETTER
As part of the annual audit, the Auditor provides comments in a management letter for
improving the financial management system of the City. The Auditor's comments are
enclosed as well as Finance Department response.
ACTION STEP
It is recommended that the City Council receives and files the Fiscal Year 2010 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 2010 CAFR
Internal Control Letter
Auditor Management Letter
Response to Comments in Auditor Management Letter
Masterpiece on the Mississippi
Dubuque
katitel
ALAmericaCity
2007
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director rL- 4/4
SUBJECT: Responses to Internal Control and Audit Management Letters - Fiscal Year
Ended June 30, 2010
DATE: January 31, 2011
INTRODUCTION
Responses to the January 21, 2011 internal control and management letters issued by
Eide Bailly LLP subsequent to completion of the Fiscal Year 2010 audit of the City are
hereby submitted.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2010 details specific findings. Pages 118 -122 of the report provide this
information. In addition to the comments in the report, an internal control and a
management letter dated January 21, 2011 were issued which includes more general
comments relative to improving the City's overall accounting and control systems.
DISCUSSION
Finance Department responses to the internal control letter comments follow:
Auditor comment
A properly designed system of internal control over financial reporting calls for the
preparation of an entity's financial statements and accompanying notes to the financial
statements by intemal personnel of the entity. As auditors, we were requested to draft
the financial statements and accompanying notes to the financial statements. We
recognize that with a limited number of office employees, preparation of the financial
statements is difficult. It is the responsibility of management and those charged with
govemance to make the decision whether to accept the degree of risk associated with
this condition because of cost or other considerations.
City of Dubuque response
The American Institute of Certified Public Accountants implemented new auditing
standards in 2007. There have been no changes in City procedures. A cost benefit
analysis reflects that the City continue with the current contractual agreement that the
CPA firm prepare our financial statements. The current five year audit contractual
agreement expires with year ending June 30, 2010, audit and City will review the issue
prior to any new agreement. The City implemented procedures to prepare the majority
of adjusting journal entries.
Auditor comment
A property designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with
generally accepted accounting principles and the requirements of OMB CircularA -133,
Audits of States, Local Governments, and Non - Profit Organizations. During the course
of our engagement, we proposed material audit adjustments to the financial statements
and Schedule of Expenditures of Federal Awards that would not have been identified
as a result of the City's existing internal controls and, therefore, could have resulted in a
material misstatement of the City's financial statements and Schedule of Expenditures
of Federal Awards. These adjustments were caused by a limited number of office
employees with varying levels of experience with the reporting requirements.
City of Dubuque response
Finance staff will review audit findings with the City Grant Committee. Finance
continues to improve communication between departments receiving grants, Budget
Department and Finance Department, to capture applicable cash and accrual basis
information for grants. Finance will complete additional review for debt workpapers for
proper classification by fund.
Finance Department responses to the management letter comments follow:
Auditor comment
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements
identified during the audit, other than those that are trivial, and communicate them to
the appropriate level of management. Management has corrected all such
misstatements. To the following material misstatements, detected as a result of audit
procedures, were corrected by management:
Stormwater Utility ($525, 283)
City of Dubuque Response
The GO Series 2009C premium was split enterprise and governmental activities. The
entire premium was classified as governmental when a portion should have been
classified as stormwater. Corrections have been made to insure future years premium
will be classified correctly.
Parking Facilities ($3,698,997)
City of Dubuque Response
Debt payments are paid out of the parking fund. A transfer is made from TIF fund to
cover the debt payments. The audit workpaper listed debt as enterprise when it should
have been classified as government. Corrections have been made to insure future
years debt will be classified correctly as governmental.
Parking Facilities ($371,978)
City of Dubuque Response
Loan to Dubuque Initiatives was inadvertently listed under governmental rather than
parking. Corrections have been made to insure future years debt will be classified
correctly as governmental.
Transit System ($978,632)
City of Dubuque Response
Federal operating grant dollars for FY10 had not been received at the time grant
receivable workpaper was prepared. Conversations with new management in Transit
on grant receivable procedures, as well as an additional step added to audit review of
workpapers will insure that Transit receivable grant dollars are recorded in proper year.
KJT /jmg
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
EideBailly®
CPAs & BUSINESS ADVISORS
In planning and performing our audit of the financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Dubuque, Iowa, as of and for the year ended June 30, 2010, in accordance with auditing
standards generally accepted in the United States of America, we considered the City's internal control over
financial reporting (internal control) as a basis for designing our auditing procedures for the purpose of expressing
our opinions on the financial statements, but not for the purpose of expressing an opinion on the effectiveness of
the City's internal control. Accordingly, we do not express an opinion on the effectiveness of the City's internal
control.
Our consideration of internal control was for the limited purpose described in the preceding paragraph and was
not designed to identify all deficiencies in internal control that might be significant deficiencies or material
weaknesses and therefore there can be no assurance that all such deficiencies have been identified. However, as
discussed below, we identified certain deficiencies in internal control that we consider to be material weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow management or
employees, in the normal course of performing their assigned functions, to prevent, or detect and correct
misstatements on a timely basis. A material weakness is a deficiency, or combination of deficiencies in internal
control, such that there is a reasonable possibility that a material misstatement of the entity's financial statements
will not be prevented, or detected and corrected on a timely basis. We consider the following deficiencies in the
City's internal control to be material weaknesses:
A properly designed system of internal control over financial reporting calls for the preparation of an
entity's financial statements and accompanying notes to the financial statements by internal personnel of
the entity. As auditors, we were requested to draft the financial statements and accompanying notes to the
financial statements. We recognize that with a limited number of office employees, preparation of the
financial statements is difficult. It is the responsibility of management and those charged with governance
to make the decision whether to accept the degree of risk associated with this condition because of cost or
other considerations.
A properly designed system of internal control over financial reporting allows entities to initiate,
authorize, record, process, and report financial data reliably in accordance with generally accepted
accounting principles and the requirements of OMB Circular A -133, Audits of States, Local Governments,
and Non - Profit Organizations. During the course of our engagement, we proposed material audit
adjustments to the financial statements and Schedule of Expenditures of Federal Awards that would not
have been identified as a result of the City's existing internal controls and, therefore, could have resulted
in a material misstatement of the City's financial statements and Schedule of Expenditures of Federal
Awards. These adjustments were caused by a limited number of office employees with varying levels of
experience with the reporting requirements.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 2
This communication is intended solely for the information and use of the Mayor, City Council, management, and
others within the organization and is not intended to be and should not be used by anyone other than these
specified parties.
Dubuque, Iowa
January 21, 2011
/ zf.a,e/ .0 G 7'
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
EideBailly.
CPAs 6. BUSINESS ADVISORS
We have audited the financial statements of the governmental activities, the business -type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of the City
of Dubuque, Iowa, for the year ended June 30, 2010. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, Government Auditing
Standards, and OMB Circular A -133, as well as certain information related to the planned scope and timing of
our audit. We have communicated such information in our letter to you dated May 13, 2010. Professional
standards also require that we communicate to you the following information related to our audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Dubuque are described in Note 1 to the financial statements. No new
accounting policies were adopted, and the application of existing policies was not changed during 2010. We noted
no transactions entered into by the City during the year for which there is a lack of authoritative guidance or
consensus. All significant transactions have been recognized in the financial statements in the proper period.
Accounting estimates are an integral part of the financial statements prepared by management and are based on
management's knowledge and experience about past and current events and assumptions about future events.
Certain accounting estimates are particularly sensitive because of their significance to the financial statements and
because of the possibility that future events affecting them may differ significantly from those expected. The most
sensitive estimates affecting the City's financial statements were:
Management's estimate of the depreciable lives is based on past history of life cycles of capital assets. We
evaluated the key factors and assumptions used to develop the depreciable lives in determining that they
are reasonable in relation to the financial statements taken as a whole.
Management's estimate of the cost of contributed infrastructure from developers is based on estimated
unit cost on City funded projects. We evaluated the key factors and assumptions used to develop the
contributed infrastructure costs in determining that they are reasonable in relation to the financial
statements taken as a whole.
Management's estimate of incurred but not reported health insurance and workers' compensation
liabilities are based on third -party administrator's calculations and estimates. We evaluated the key factors
and assumptions used to develop incurred but not reported liabilities in determining that they are
reasonable in relation to the financial statements taken as a whole.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 I Dubuque, IA 52002 -2273 1 T 563.556.1790 I F 563.557.7842 EOE
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 2
Management's estimate of other postemployment benefits liability is based on a calculation of actuarially
determined contributions for health insurance benefits. We evaluated the key factors and assumptions
used to develop other postemployment benefits liability in determining that it is reasonable in relation to
the financial statements taken as a whole.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the audit,
other than those that are trivial, and communicate them to the appropriate level of management. Management has
corrected all such misstatements. The following material misstatements, detected as a result of audit procedures,
were corrected by management:
Stormwater Utility
To correct fiscal year 2010 premium on Governmental
Activities debt recorded in the Stormwater Utility in error $ 525,283 $ (525,283) $ 525,283
Parking Facilities
To correct TIF debt related to the Parking Facilities. Debt is
to be paid from Tax Increment Financing, but was recorded
as a liability in the Parking Facilities Fund in error.
To correct Parking Facility parking lot loan recorded in the (371,978) 371,978 (371,978)
Governmental Activities in error
Transit System
To record the Transit System's fiscal year 2010 federal
operating grant revenue and receivable 978,632 - 978,632
Disagreements with Management
Equity Increase (Decrease)
Fund Governmental Business -type
Statements Activities Activities
3,698,997 (3,698,997) 3,698,997
For purposes of this letter, professional standards define a disagreement with management as a financial
accounting, reporting, or auditing matter, whether or not resolved to our satisfaction, that could be significant to
the financial statements or the auditor's report. We are pleased to report that no such disagreements arose during
the course of our audit.
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 3
Management Representations
We have requested certain representations from management that are included in the management representation
letter dated January 21, 2011.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting matters,
similar to obtaining a "second opinion" on certain situations. If a consultation involves application of an
accounting principle to the City's financial statements or a determination of the type of auditor's opinion that may
be expressed on those statements, our professional standards require the consulting accountant to check with us to
determine that the consultant has all the relevant facts. To our knowledge, there were no such consultations with
other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these discussions
occurred in the normal course of our professional relationship, and our responses were not a condition to our
retention.
New Accounting Pronouncement
We have included additional information regarding a new accounting pronouncement.
This information is intended solely for the use of the Mayor, City Council, and management of the City of
Dubuque, Iowa, and is not intended to be and should not be used by anyone other than these specified parties.
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
January 21, 2011
SGT
CITY OF DUBUQUE
YEAR ENDED JUNE 30, 2010
NEW ACCOUNTING PRONOUNCEMENT
Governmental Accounting Standards Board (GASB)
GASB has issued one statement not yet implemented by the City that will affect the City's financial statements, as
follows:
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February 2009, will
be effective for the fiscal year ending June 30, 2011. This Statement establishes new standards for fund balance
classifications based primarily on the extent to which a government is bound to observe constraints imposed upon
the use of the resources reported in governmental funds.
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CITY OF DUBUQUE, IOWA
Table of Contents
ExhibitPage
INTRODUCTORY SECTION
Table of Contents 1-2
Letter of Transmittal 3-12
City Organizational Chart 13
Officials 14
Certificate of Achievement for Excellence in Financial Reporting 15
FINANCIAL SECTION
Independent Auditor’s Report 16-17
Management’s Discussion and Analysis 18-25
Basic Financial Statements
Government-wide Financial Statements
Statement of Net Assets 1 26-27
Statement of Activities 2 28
Fund Financial Statements
Balance Sheet – Governmental Funds 3 29
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets 3-1 30
Statement of Revenues, Expenditures, and Changes in Fund
Balances – Governmental Funds 4 31
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4-1 32
Statement of Net Assets – Proprietary Funds 5 33-34
Statement of Revenues, Expenses, and Changes in Fund Net Assets
– Proprietary Funds 6 35
Statement of Cash Flows – Proprietary Funds 7 36-37
Statement of Fiduciary Assets and Liabilities – Agency Funds 8 38
Notes to Financial Statements 39-69
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances – Budget
and Actual (Budgetary Basis) – Governmental Funds and Enterprise Funds 70
Notes to Required Supplementary Information – Budgetary Reporting 71
Schedule of Funding Progress for the Retiree Benefit Plan 72
Combining Fund Statements
Combining Balance Sheet – Nonmajor Governmental Funds A-1 73-74
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances – Nonmajor Governmental Funds A-2 75-76
Combining Statement of Net Assets – Nonmajor Enterprise Funds B-1 77
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets – Nonmajor Enterprise Funds B-2 78
Combining Statement of Cash Flows – Nonmajor Enterprise Funds B-3 79-80
Combining Statement of Net Assets – Internal Service Funds C-1 81
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets (Deficit) – Internal Service Funds C-2 82
Combining Statement of Cash Flows – Internal Service Funds C-3 83
Combining Statement of Changes in Assets and Liabilities – Agency Funds D-1 84
1
CITY OF DUBUQUE, IOWA
Table of Contents
TablePage
STATISTICAL SECTION (Unaudited)
Statistical Section Contents 85
Financial Trends
Net Assets by Component 1 86
Changes in Net Assets 2 87-88
Fund Balances of Governmental Funds 3 89
Changes in Fund Balances of Governmental Funds 4 90
Revenue Capacity
Taxable and Assessed Value of Property 5 91
Property Tax Rates – Direct and Overlapping Governments 6 92
Principal Property Taxpayers 7 93
Property Tax Levies and Collections 8 94
Debt Capacity
Ratios of Outstanding Debt by Type 9 95
Ratios of General Bonded Debt Outstanding 10 96
Direct and Overlapping Governmental Activities Debt 11 97
Legal Debt Margin Information 12 98
Revenue Debt Coverage 13 99
Water and Sewer Receipt History 14 100
Water Meters by Rate Class 15 101
Largest Water and Sewer Customers 16 102
Demographic and Economic Information
Demographic and Economic Statistics 17 103
Principal Employers 18 104
Operating Information
Full-Time Equivalent City Government Employees by
Function/Department 19 105
Operating Indicators by Function/Program 20 106
Capital Asset Statistics by Function/Program 21 107
COMPLIANCE SECTION
Report on Internal Control over Financial Reporting and on Compliance
and other Matters Based on an Audit of Financial Statements
Performed in Accordance with Government AuditingStandards 108-109
Report on Compliance with Requirements That Could Have a Direct and
Material Effect on Each Major Program and on Internal Control Over
Compliance in Accordance with OMB Circular A-133 110-111
Schedule of Expenditures of Federal Awards 112-116
Notes to the Schedule of Expenditures of Federal Awards 117
Schedule of Findings and Questioned Costs 118-122
2
13
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2010
CITY COUNCIL
Roy D. Buol Mayor
Richard W. Jones Council Member – At Large
David T. Resnick Council Member – At Large
st
Kevin J. Lynch Council Member – 1 Ward
nd
Karla A. Braig Council Member – 2 Ward
rd
Joyce E. Connors Council Member – 3 Ward
th
Dirk N. Voetberg Council Member – 4 Ward
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen City Manager
Barry A. Lindahl City Attorney
Crenna M. Brumwell-Sahm Assistant City Attorney
James A. O’Brien Assistant City Attorney
Jeanne F. Schneider City Clerk
DEPARTMENT MANAGERS
Robert A. Grierson Airport Manager
Therese H. Goodmann Assistant City Manager
Cynthia M. Steinhauser Assistant City Manager
Jenny M. Larson Budget Director
Richard R. Russell Building Services Manager
David J. Heiar Economic Development Director
Kenneth J. TeKippe Finance Director
E. Daniel Brown Fire Chief
Mary Rose Corrigan Health Services Manager
David W. Harris, Jr. Housing and Community Development Manager
Kelly R. Larson Human Rights Director
Randall K. Peck Personnel Manager
Christine A. Kohlmann Information Services Manager
Marie L. Ware Leisure Services Manager
Susan A. Henricks Library Director
Donald J. Vogt Public Works Director
Laura B. Carstens Planning Services Manager
Mark M. Dalsing Police Chief
Gus N. Psihoyos Public Works Director
Robert M. Green Water Department Manager
Jonathan R. Brown Water Pollution Control Plant Manager
14
15
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INDEPENDENT AUDITOR’S REPORT
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa (City), as of and for the year ended June 30,
2010, which collectively comprise the City’s basic financial statements listed in the table of contents.
These financial statements are the responsibility of the management of the City of Dubuque, Iowa. Our
responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of Dubuque Initiatives and Subsidiaries (a discretely presented component unit).
Those financial statements were audited by other auditors whose reports thereon have been furnished to
us, and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives and Subsidiaries,
is based on the reports of the other auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government Auditing Standards,
issued by the Comptroller General of the United States. Those standards require that we plan and perform
the audit to obtain reasonable assurance about whether the financial statements are free of material
misstatement. The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented
component unit, were not audited in accordance Government Auditing Standards. An audit includes
examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements.
An audit also includes assessing the accounting principles used and the significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
provides a reasonable basis for our opinions.
In our opinion, the financial statements referred to above present fairly, in all material respects, the
respective financial position of the governmental activities, the business-type activities, the aggregate
discretely presented component units, each major fund, and the aggregate remaining fund information of
the City of Dubuque, Iowa, as of June 30, 2010, and the respective changes in financial position and cash
flows, where applicable, for the year then ended in conformity with accounting principles generally
accepted in the United States of America.
In accordance with Government Auditing Standards, we have also issued our report dated January 21,
2011, on our consideration of the City’s internal control over financial reporting and on our tests of its
compliance with certain provisions of laws, regulations, contracts, and grant agreements and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards and should be considered in assessing the results of our
audit.
16
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Management’s discussion and analysis and other required supplementary information, listed in the table
of contents, are not required parts of the basic financial statements, but are supplementary information
required by accounting principles generally accepted in the United States of America. We have applied
certain limited procedures, which consisted principally of inquiries of management regarding the methods
of measurement and presentation of the required supplementary information. However, we did not audit
the information and express no opinion on it.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the basic financial statements of the City of Dubuque, Iowa. The introductory section,
combining nonmajor fund financial statements, and statistical section are presented for purposes of
additional analysis and are not a required part of the basic financial statements. The accompanying
Schedule of Expenditures of Federal Awards is presented for purposes of additional analysis as required
by U.S. Office of Management and Budget (OMB) Circular A-133, Audits of States, Local Governments,
and Non-Profit Organizations, and is also not a required part of the basic financial statements of the City
of Dubuque, Iowa. The combining nonmajor fund financial statements and the Schedule of Expenditures
of Federal Awards have been subjected to the auditing procedures applied in the audit of the basic
financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic
financial statements taken as a whole. The introductory and statistical sections have not been subjected to
the auditing procedures applied in the audit of the basic financial statements, and accordingly, we express
no opinion on them.
Dubuque, Iowa
January 21, 2011
17
CITY OF DUBUQUE
MANAGEMENT’S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2010
This section of the City of Dubuque’s annual financial report presents our discussion and
analysis of the City’s financial performance during the fiscal year that ended on June 30,
2010. Please read it in conjunction with the transmittal letter at the front of this report and
the City’s financial statements found in the next section of this report.
FINANCIAL HIGHLIGHTS
The assets of the City of Dubuque exceeded its liabilities at the close of the fiscal
year by $460,549,806 (net assets). This was an increase of $6,239,484 over net
assets at June 30, 2009, primarily due to additions in buildings and infrastructure.
Unrestricted net assets for governmental activities are negative $11,256,312 due
to TIF debt for the Port of Dubuque parking facility residing in governmental
activities.
The expenditures of the general fund exceeded revenues by $6,442,475.
The ending general fund balance was $13,822,465.
Within the City’s business-type activities, revenues exceeded expenses and
transfers by $3,050,548.
For the year, the revenues of the City’s governmental activities exceeded
expenses and transfers by $3,188,936.
The City’s debt increased by $15,591,834 due to issuance of new debt exceeding
principal payments.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City’s basic financial statements consist of government-wide financial statements,
fund financial statements, and notes to the financial statements. This discussion and
analysis is intended to serve as an introduction to the basic financial statements. This
report also contains other supplementary information in addition to the basic financial
statements themselves.
Government-wide Financial Statements
The government-wide financial statements are designed to provide readers with a broad
overview of the City’s finances, in a manner similar to private-sector business. The
paragraphs below provide a brief description of the government-wide financial
statements.
The statement of net assets presents information on all of the City’s assets and liabilities,
with the difference between the two reported as net assets. Over time, increases or
decreases in net assets may serve as a useful indicator of whether the financial position of
the City is improving or deteriorating. To assess the overall health of the City, you need
18
to consider additional non-financial factors such as changes in the City’s property tax
base and the condition of the City’s infrastructure.
The statement of activities presents information showing how the City’s net 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 two other legally separate entities (known as component
units), the Dubuque Metropolitan Area Solid Waste Agency (DMASWA) and Dubuque
Initiatives (DI) and Subsidiaries, for which the City of Dubuque is considered financially
accountable. Financial information for DMASWA and DI are reported separately from
the financial information presented for the primary government. The Dubuque
Metropolitan Area Solid Waste Agency and Dubuque Initiatives and Subsidiaries issue
separate financial statements. Dubuque Initiatives and Subsidiaries’ financial statements
are prepared on a calendar year basis while the Dubuque Metropolitan Area Solid Waste
Agency’s financial statements are prepared on the same fiscal year basis as the City of
Dubuque.
The government-wide financial statements are divided into two categories:
Governmental activities.
This category consists of services provided by the City that are
principally supported by taxes and intergovernmental revenues. Basic City services such
as police, fire, public works, planning, parks, library, and general administration are
governmental activities.
Business-type activities.
These activities are supported primarily by user fees. The
services provided by the City in this category include water, sewer, storm water, refuse,
parking, transit and the America’s River Project.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that
have been segregated for specific activities or objectives. The City uses fund accounting
to ensure and demonstrate compliance with legal requirements for financial transactions
and reporting. All of the funds of the City can be divided into three categories:
governmental funds, proprietary funds, and fiduciary funds.
Governmental funds.
Governmental funds are used to account for essentially the same
functions reported as governmental activities in the government-wide financial
statements. However, unlike the government-wide financial statements, governmental
fund financial statements focus on near-term inflows and outflows of spendable
resources, as well as on balances of spendable resources available at the end of the fiscal
year. Such information may be useful in evaluating a government’s near-term financial
requirements.
19
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 five individual major governmental funds. Information is presented
separately in the governmental fund balance sheet and in the governmental fund
statement of revenues, expenditures, and changes in fund balances for the general fund,
employee benefits fund, street construction fund, community development fund, and
general construction fund, all of which are considered to be major funds. Data from all
other governmental funds are combined into a single, aggregated presentation. Individual
fund data for each of these non-major governmental funds is provided in the form of
combining statements elsewhere in this report.
The City legally adopts an annual budget by function. A budgetary comparison schedule
has been provided.
Proprietary funds.
The City maintains two different types of proprietary funds.
Enterprise funds are used to report the same functions presented as business-type
activities in the government-wide financial statements. The City uses enterprises funds to
account for its sewer, water, storm water, and refuse utilities, transit service, parking
facilities, and America’s River Project. Internal service funds are accounting devices used
to accumulate and allocate costs internally among the City’s various functions. The City
uses internal service funds to account for its engineering services, garage services,
stores/printing, health insurance, and workers’ compensation. The City’s internal service
funds predominately benefit the governmental activities and have been included in the
governmental activities in the government-wide financial statements.
Fiduciary funds.
Fiduciary funds are used to account for resources held for the benefit of
parties outside the government. Fiduciary funds are not reflected in the government-wide
financial statements because the resources of those funds are not available to support the
City’s own programs. The accounting used for fiduciary funds is much like that used for
proprietary funds. The City has two fiduciary funds, an agency fund reporting resources
held for the Dubuque Racing Association for improvements at the greyhound racing
facility and an agency fund used for reporting resources from Mediacom for purchasing
equipment relevant to public, educational, and governmental (PEG) access broadcasting.
Notes to the financial statements.
The notes provide additional information that is
essential to a full understanding of the data provided in the government-wide and fund
financial statements.
Required supplementary information.
In addition to the basic financial statements and
accompanying notes, this report also presents certain required supplementary information
concerning the budget and actual results of the City and the funding progress for the
retiree benefit plan.
20
Other information.
The combining statements referred to earlier in connection with non-
major governmental funds, non-major enterprise funds, and internal service funds, as well
as an individual agency fund statement, are presented immediately following the required
supplementary information.
GOVERNMENT-WIDE FINANCIAL ANALYSIS
Net assets.
As noted earlier, net assets may serve as a useful indicator of a government’s
financial position when observed over time. In the case of the City, assets exceeded
liabilities by $460,549,806 at the close of the most recent fiscal year.
The largest part of the City’s net assets (94.2%) reflects its investment in capital assets
such as land, buildings, infrastructure, machinery, and equipment less any related debt
used to acquire those assets that are still outstanding. These capital assets are used to
provide services to the citizens and are not available for future spending.
CITY OF DUBUQUE'S NET ASSETS
Governmental ActivitiesBusiness-type ActivitiesTotal
201020092010200920102009
Current and other assets73,454,790$ 82,013,145$ 24,755,782$ 16,750,708$ 98,210,572$ 98,763,853$
Capital assets335,569,658 320,588,664 148,392,552 139,030,639 483,962,210 459,619,303
Total assets409,024,448 402,601,809 173,148,334 155,781,347 582,172,782 558,383,156
Long-term liabilities57,954,405 54,942,748 34,465,063 20,751,447 92,419,468 75,694,195
Other liabilities27,135,353 26,913,307 2,068,155 1,465,332 29,203,508 28,378,639
Total liabilities85,089,758 81,856,055 36,533,218 22,216,779 121,622,976 104,072,834
Net assets:
Invested in capital assets,
net of related debt309,126,684 298,855,346 124,805,513 120,473,286 433,932,197 419,328,632
Restricted26,064,318 27,171,123 129,642 770,157 26,193,960 27,941,280
Unrestricted(11,256,312) (5,280,715) 11,679,961 12,321,125 423,649 7,040,410
Total net assets323,934,690$ 320,745,754$ 136,615,116$ 133,564,568$ 460,549,806$ 454,310,322$
A portion of the City’s net assets (5.7%) represents resources that are subject to external
restrictions on how they may be used.
At the close of fiscal years 2010 and 2009, the City is able to report positive balances in
total net assets, both for the government as a whole and business-type activity. The only
deficit balance reported is in the governmental activities unrestricted category. This is
due to TIF debt for the Port of Dubuque parking facility residing in governmental
activities. The City also has unfunded OPEB liability and accrued employee absences
that would not have corresponding offsetting assets.
.
21
Governmental activities.
The Governmental activities increased in the net assets by
$3,188,936 in 2010. Taxes are the largest source of governmental revenues with property
taxes of $24,876,073 in 2010. Other governmental revenues included gaming of
$8,209,761, local option sales taxes of $8,112,471, and $11,000,413 of charges for
services. Governmental expenses during 2010 totaled $82,974,812. The largest programs
were public safety of $22,067,988, public works of $22,121,629, community and
economic development of $15,422,099 and culture and recreation of $11,446,084.
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES,
EXPENSES AND CHANGES IN NET ASSETS
Governmental ActivitiesBusiness-type ActivitiesTotal
201020092010200920102009
Revenues:
Program revenues
Charges for services11,000,413$ 10,314,274$ 19,075,850$ 18,809,520$ 30,076,263$ 29,123,794$
Operating grants and contributions20,830,113 12,599,967 1,652,277 1,095,946 22,482,390 13,695,913
Capital grants and contributions10,748,522 4,811,729 3,800,582 3,613,321 14,549,104 8,425,050
General revenues
Property taxes24,876,073 23,716,819 - - 24,876,073 23,716,819
Local option sales tax8,112,471 7,649,853 - - 8,112,471 7,649,853
Hotel/motel tax1,678,806 1,611,954 - - 1,678,806 1,611,954
Utility franchise fees1,591,712 1,486,292 - - 1,591,712 1,486,292
Gaming8,209,761 9,627,391 - - 8,209,761 9,627,391
Unrestricted investment earnings1,339,709 2,215,413 294,562 433,148 1,634,271 2,648,561
Gain on sale of capital assets- 407,503 23,699 2,304 23,699 409,807
Other880,930 918,605 - - 880,930 918,605
Total revenues89,268,510 75,359,800 24,846,970 23,954,239 114,115,480 99,314,039
Expenses:
Public safety22,067,988 22,038,265 - - 22,067,988 22,038,265
Public works22,121,629 19,079,688 - - 22,121,629 19,079,688
Health and social services852,099 849,237 - - 852,099 849,237
Culture and recreation11,446,084 12,640,716 - - 11,446,084 12,640,716
Community and economic
development15,422,099 12,693,140 - - 15,422,099 12,693,140
General government7,963,016 6,423,908 - - 7,963,016 6,423,908
Interest on long-term debt3,101,897 3,164,126 - - 3,101,897 3,164,126
Sewage disposal works- - 6,631,326 6,326,708 6,631,326 6,326,708
Water utility- - 6,093,827 6,100,491 6,093,827 6,100,491
Stormwater utility- - 2,213,144 2,138,198 2,213,144 2,138,198
Parking facilities- - 4,003,776 2,147,405 4,003,776 2,147,405
America's River Project- - 423,158 61,927 423,158 61,927
Refuse collection- - 2,703,887 2,788,665 2,703,887 2,788,665
Transit system- - 2,832,066 2,625,145 2,832,066 2,625,145
Total expenses82,974,812 76,889,080 24,901,184 22,188,539 107,875,996 99,077,619
Increase (decrease) in net assets
before transfers6,293,698 (1,529,280) (54,214) 1,765,700 6,239,484 236,420
Transfers(3,104,762) (24,826,982) 3,104,762 24,826,982 - -
Increase (decrease) in net assets3,188,936 (26,356,262) 3,050,548 26,592,682 6,239,484 236,420
Net assets, beginning320,745,754 347,102,016 133,564,568 106,971,886 454,310,322 454,073,902
Net assets, ending323,934,690$ 320,745,754$ 136,615,116$ 133,564,568$ 460,549,806$ 454,310,322$
22
Business-type activities.
Business-type activities increased net assets by $3,050,548 in
fiscal year 2010. The 2009 $26,592,682 increase in net assets was primarily due to the
transfer for the Port of Dubuque parking ramp.
FINANCIAL ANALYSIS OF THE GOVERNMENT’S FUNDS
Governmental funds
. The focus of the City’s governmental funds is to provide
information on near-term inflows, outflows, and balances of spendable resources. Such
information is useful in assessing the City’s financing requirements. In particular,
unreserved fund balance may serve as a useful measure of a government’s net resources
available for spending at the end of the fiscal year.
The City’s governmental funds reported a combined fund balance of $41,282,391 at June
30, 2010. A portion of the fund balance is reserved and not available for new spending
because it has already been committed for encumbrances, endowments, debt service, and
state statute restricted purposes.
The general fund’s fund balance reserve goal is 10% of budgeted annual expenditures.
The balance at June 30, 2010 is higher than the goal.
The unreserved fund balance of special revenue employee benefits fund increased by
$10,639 to $36,147. The unreserved fund balance of special revenue community
development increased by $529,874 to $2,037,619.
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, 2010, totaled $136,615,116 of
which 8.5% ($11,679,961) is unrestricted. The net assets of the internal service funds are
$1,137,803, a $1,672,654 decrease from the 2009 total net assets, due to reduction in the
funding level of the Employee Health Insurance Reserve, based on favorable results in
claims for past years. The unrestricted net assets of the internal service funds are
$1,088,521 (95.7%).
The sewer disposal works had an increase in net assets of $1,499,201 for total net assets
of $42,725,386 at June 30, 2010 primarily due to capital grants and contributions. The
water utility had a decrease in net assets of $24,286 for total net assets of $24,323,361.
The storm water utility had an increase in net assets of $1,147,055 for total net assets of
$26,915,421 primarily due to capital grants and contributions. The parking facilities had
an increase in net assets of $120,220 for total net assets of $38,519,562. The America’s
River Project had an increase in net assets of $125,784 for total net assets of $179,225.
23
BUDGETARY HIGHLIGHTS
There were two amendments to the City’s 2009-2010 cash basis budget. The first
amendment was passed in September 2009 to reflect operating and capital budget
carryovers (continuing appropriation authority) from 2009 and amends the FY 2010
budget for operating and capital City Council actions since the beginning of the fiscal
year. The second budget amendment was passed in April 2010 to reflect City Council
actions since the first budget amendment and amendments to add additional appropriation
authority due to increased revenues.
The final budget for total cash basis receipts increased by $30,698,541. The increase was
primarily attributable to revenue associated with capital projects and operating carryovers
which mainly include grants to intergovernmental funds. The final budget for total
expenditures increased $61,877,162 from the original budget. The increase was primarily
attributable to purchase order encumbrances carryover, capital projects and operating
carryovers from the prior year and expenditures associated with new grants received.
Actual cash basis revenues were $40,298,281 less than the final amended budget, and
cash basis expenditures were $81,589,063 less than the final amended budget due
primarily to projected capital projects not completed by fiscal year end.
CAPITAL ASSETS AND DEBT ADMINISTRATION
Capital assets.
The City’s investment in capital assets for its governmental and business-
type activities as of June 30, 2010, amounts to $483,962,210 (net of accumulated
depreciation). This investment in capital assets includes land, buildings, improvements
other than buildings, machinery and equipment, infrastructure, and construction in
progress. Additional information on the City’s assets can be found in the note 6 to the
financial statements in this report.
CAPITAL ASSETS (net of accumulated depreciation)
Governmental ActivitiesBusiness-type ActivitiesTotal
201020092010200920102009
Land58,772,516$ 58,392,908$ 13,487,195$ 6,227,014$ 72,259,711$ 64,619,922$
Buildings113,435,724 109,118,439 85,822,990 85,114,689 199,258,714 194,233,128
Improvements other than buildings15,535,320 15,535,320 68,523,151 63,968,022 84,058,471 79,503,342
Machinery and equipment32,454,175 31,100,111 56,277,467 52,962,217 88,731,642 84,062,328
Infrastructure192,517,528 188,493,620 - - 192,517,528 188,493,620
Construction in progress17,586,988 6,138,618 6,509,164 9,558,839 24,096,152 15,697,457
Accumulated depreciation(94,732,593) (88,190,352) (82,227,415) (78,800,142) (176,960,008) (166,990,494)
$ 320,588,664335,569,658$ 148,392,552$ 139,030,639$ 483,962,210$ 459,619,303$
Major expenditures during 2009-2010 were for work on the Southwest Arterial,
completion of the Library renovation, Water Pollution Control Plant engineering and
design, the Bee Branch storm water project, North Fork sewer improvement, and the
Catfish Creek interceptor.
24
Long-term debt.
At year end the City had $87,404,922 of debt outstanding. This is an
increase of $15,591,834 from June 30, 2009. New debt issued during the current year
included general obligation bonds for $22,995,000 for a new fire pumper truck, street and
fiber optics projects, storm water projects, airport projects, a new downtown parking lot,
property improvements for the industrial center, and $9,405,000 refunding of GO Bonds
series 2001 and 2002. The City’s bond rating for these issues was Aa2. The City also
received disbursements from the State Revolving Fund construction loan program of
$5,307,590, of which $3,225,700 are planning and design loans for primarily the Water
Pollution Control Plant and Upper Bee Branch storm water projects. $2,081,890 is
construction loan funds for sanitary sewer and storm water projects and the City’s water
meter replacement project. The City also received a $647,176 TIF loan from Premier
Bank for conversion of warehouse property at 40 Main St. into residential apartments.
The City entered into a Purchase Agreement with the Iowa Department of Transportation
for $330,000 to purchase a building in the harbor district with seven equal annual
payments at zero percent interest.
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 $167,247,462. With
$101,152,438 of debt applicable against the capacity, we are utilizing 60.48% of this
limit. Additional information on the City’s long-term debt can be found in note 7 of this
report.
ECONOMIC FACTORS
The City’s unemployment rate ended the fiscal year at 6.4%, a 0.2% increase from the
prior year, but lower than both the State of Iowa’s 6.7% rate and 9.5% national rate.
The assessed valuation of taxable property, net of exemptions, increased by 4.34% to
$2,023,899,000. In fiscal year 2010, the minimum monthly refuse rate increased $0.74 to
$11.09, sewer rates increased 5%, water rates increased 5%, and the storm water monthly
fee increased $1.25 to $5.25 per single family unit (SFU).
Requests for information.
This financial report is designed to provide a general
overview of the City’s finances for all those with an interest in the government’s
finances. Questions concerning any of the information provided in this report or requests
for additional financial information should be addressed to the Finance Director, 50 West
th
13 Street, Dubuque, Iowa 52001-4864.
25
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CITY OF DUBUQUE, IOWA
EXHIBIT 1
STATEMENT OF NET ASSETS
JUNE 30, 2010
Component Units
DubuqueDubuque
Primary GovernmentMetropolitanInitiatives
GovernmentalBusiness-typeArea Solidand
ActivitiesActivitiesTotalWaste AgencySubsidiaries
ASSETS
CURRENT ASSETS
Cash and pooled cash investments28,867,215$ 18,954,347$ 47,821,562$ 6,769,203$ 23,131,590$
Receivables
Property tax
Delinquent433,397 - 433,397 - -
Succeeding year19,878,962 - 19,878,962 - -
Accounts and other2,520,811 2,375,236 4,896,047 202,430 65,770
Special assessments590,098 - 590,098 - -
Accrued interest143,839 24,608 168,447 8,547 65,938
Notes569,521 - 569,521 - 66,944
Intergovernmental5,573,916 2,454,979 8,028,895 21,144 -
Internal balances232,479 (232,479) - - -
Inventories838,241 461,750 1,299,991 - 133,347
Prepaid items25,980 501,059 527,039 2,212 -
Total Current Assets59,674,459 24,539,500 84,213,959 7,003,536 23,463,589
NONCURRENT ASSETS
Temporarily restricted cash and pooled
cash investments3,514,465 216,282 3,730,747 3,912,712 1,217,934
Permanently restricted cash and pooled
cash investments69,412 - 69,412 - -
Notes receivable10,196,454 - 10,196,454 - 22,331,913
Capital assets
Land58,772,516 13,487,195 72,259,711 1,586,092 131,983
Buildings113,435,724 85,822,990 199,258,714 65,922 21,678,873
Improvements other than buildings15,535,320 68,523,151 84,058,471 6,364,906 32,816
Machinery and equipment32,454,175 56,277,467 88,731,642 2,820,938 -
Infrastructure192,517,528 - 192,517,528 - -
Construction in progress17,586,988 6,509,164 24,096,152 190,878 5,034,388
Accumulated depreciation(94,732,593) (82,227,415) (176,960,008) (6,709,479) (521,338)
Total Noncurrent Assets349,349,989 148,608,834 497,958,823 8,231,969 49,906,569
Total Assets409,024,448 173,148,334 582,172,782 15,235,505 73,370,158
(continued)
26
CITY OF DUBUQUE, IOWA
EXHIBIT 1
STATEMENT OF NET ASSETS (continued)
JUNE 30, 2010
Component Units
DubuqueDubuque
Primary GovernmentMetropolitanInitiatives
GovernmentalBusiness-typeArea Solidand
ActivitiesActivitiesTotalWaste AgencySubsidiaries
LIABILITIES
CURRENT LIABILITIES
Accounts payable5,381,277$ 1,714,277$ 7,095,554$ 287,539$ 8,127,063$
Accrued payroll1,255,293 277,490 1,532,783 34,278 -
Loans payable47,143 19,869 67,012 - -
Notes payable126,973 304,081 431,054 - 9,797,991
General obligation bonds payable1,970,000 1,295,000 3,265,000 - -
Revenue bonds payable- 70,000 70,000 - -
Tax increment financing bonds payable774,204 - 774,204 - -
Accrued compensated absences2,717,633 386,750 3,104,383 133,460 -
Accrued interest payable264,606 76,388 340,994 - 117,141
Intergovernmental payable14,081 - 14,081 54,693 -
Unearned revenue
Succeeding year property tax19,878,962 - 19,878,962 - -
Other341,134 - 341,134 - -
Total Current Liabilities32,771,306 4,143,855 36,915,161 509,970 18,042,195
NONCURRENT LIABILITIES
Loans payable235,714 352,109 587,823 - 450,000
Notes payable922,723 7,985,540 8,908,263 - 42,145,439
General obligation bonds payable 25,917,864 22,662,802 48,580,666 - -
Revenue bonds payable- 1,045,430 1,045,430 - -
Landfill closure and postclosure care- - - 3,613,945 -
Tax increment financing bonds payable23,675,470 - 23,675,470 - -
Net OPEB liability1,566,681 343,482 1,910,163 33,577 -
Total Noncurrent Liabilities52,318,452 32,389,363 84,707,815 3,647,522 42,595,439
Total Liabilities85,089,758 36,533,218 121,622,976 4,157,492 60,637,634
NET ASSETS
Invested in capital assets, net of
related debt309,126,684 124,805,513 433,932,197 4,319,257 -
Restricted for/by
Bond ordinance2,351,738 129,642 2,481,380 - -
Debt service75,688 - 75,688 - -
Employee benefits36,147 - 36,147 - -
Community development12,754,983 - 12,754,983 - -
Streets1,271,419 - 1,271,419 - -
Capital projects8,156,867 - 8,156,867 - -
Franchise/housing agreement523,309 - 523,309 - -
Endowments
Expendable33,273 - 33,273 - -
Nonexpendable69,412 - 69,412 - -
Other791,482 - 791,482 - -
State statute- - - 175,464 -
Minority interest- - - 1,494,407 -
Unrestricted(11,256,312) 11,679,961 423,649 5,088,885 12,732,524
Total Net Assets323,934,690$ 136,615,116$ 460,549,806$ 11,078,013$ 12,732,524$
See notes to financial statements. 27
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
Program Revenues
OperatingCapital
Charges forGrants andGrants and
ExpensesServicesContributionsContributions
Functions/Programs
Primary government
Governmental activities
Public safety22,067,988$ 2,348,064$ 869,364$ -$
Public works22,121,629 4,046,583 10,807,102 8,349,378
Health and social services852,099 113,536 66,413 -
Culture and recreation11,446,084 2,192,886 230,142 1,828,637
Community and economic development15,422,099 857,607 8,774,801 267,507
General government7,963,016 1,441,737 50,769 303,000
Interest on long-term debt3,101,897 - 31,522 -
Total governmental activities82,974,812 11,000,413 20,830,113 10,748,522
Business-type activities
Sewage disposal works6,631,326 5,893,730 - 2,032,043
Water utility6,093,827 5,326,202 - 716,494
Stormwater utility2,213,144 2,282,625 10,129 922,469
Parking facilities4,003,776 2,399,843 80,121 129,576
America's River Project423,158 7,000 381,668 -
Refuse collection2,703,887 2,893,017 - -
Transit system2,832,066 273,433 1,180,359 -
Total business-type activities24,901,184 19,075,850 1,652,277 3,800,582
Total primary government107,875,996$ 30,076,263$ 22,482,390$ 14,549,104$
Component units
Dubuque Metropolitan Area Solid Waste Agency3,668,115$ 2,773,919$ 7,635$ 31,125$
Dubuque Initiatives and Subsidiaries3,871,480 1,527,341 - -
Total component units7,539,595$ 4,301,260$ 7,635$ 31,125$
General revenues
Property taxes
Local option sales tax
Hotel/motel tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Gain on disposal of capital assets
Other
Transfers
Total general revenues and transfers
Change in net assets
Net assets, beginning of year
Net assets, ending of year
See notes to financial statements.
EXHIBIT 2
Net (Expense) Revenue and
Changes in Net Assets
Component Units
Primary GovernmentDubuqueDubuque
MetropolitanInitiatives
GovernmentalBusiness-typeArea Solidand
ActivitiesActivitiesTotalWaste AgencySubsidiaries
$ -(18,850,560)$ (18,850,560)$ -$ -$
-1,081,434 1,081,434 - -
-(672,150) (672,150) - -
-(7,194,419) (7,194,419) - -
-(5,522,184) (5,522,184) - -
-(6,167,510) (6,167,510) - -
-(3,070,375) (3,070,375) - -
-(40,395,764) (40,395,764) - -
1,294,447- 1,294,447 - -
(51,131)- (51,131) - -
1,002,079- 1,002,079 - -
(1,394,236)- (1,394,236) - -
(34,490)- (34,490) - -
189,130- 189,130 - -
(1,378,274)- (1,378,274) - -
(372,475)- (372,475) - -
(372,475)(40,395,764) (40,768,239) - -
-- - (855,436) -
-- - - (2,344,139)
-- - (855,436) (2,344,139)
-24,876,073 24,876,073 - -
-8,112,471 8,112,471 - -
-1,678,806 1,678,806 - -
-1,591,712 1,591,712 - -
-8,209,761 8,209,761 - -
294,5621,339,709 1,634,271 65,938 777,668
23,699- 23,699 - 27,500
-880,930 880,930 - 96,457
3,104,762(3,104,762) - - -
3,423,02343,584,700 47,007,723 65,938 901,625
3,050,5483,188,936 6,239,484 (789,498) (1,442,514)
133,564,568320,745,754 454,310,322 11,867,511 14,175,038
$ 136,615,116323,934,690$ 460,549,806$ 11,078,013$ 12,732,524$
28
CITY OF DUBUQUE, IOWA
EXHIBIT 3
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2010
Special RevenueCapital ProjectsOther
General
EmployeeCommunityStreetGovernmental
Construction
GeneralBenefitsDevelopmentConstructionFundsTotal
ASSETS
Cash and pooled cash investments13,077,168$ -$ 1,755,625$ 2,734,907$ 4,100,915$ 4,721,450$ 26,390,065$
Receivables
Property tax
Delinquent382,342 39,829 - - - 11,226 433,397
Succeeding year17, 2,226,832127,333 - - - 524,797 19,878,962
Accounts and other1,863,014 - - 21,036 - 635,178 2,519,228
Special assessments- - - - - 590,098 590,098
Accrued interest45,609 - 36,689 7,227 752 47,557 137,834
Notes218,869 - 10,546,011 - - 1,095 10,765,975
Intergovernmental2,458,442 - 184,313 1,944,595 134,668 847,338 5,569,356
Due from other funds73,434 - - - - - 73,434
Inventories173,423 - - - - 613,943 787,366
Advances to other funds160,717 - - - - - 160,717
Prepaid items19,978 - 4,413 - - - 24,391
Restricted cash and pooled cash
investments- - - - 1,100,822 2,483,055 3,583,877
Total Assets35,600,329$ 2,266,661$ 12,527,051$ 4,707,765$ 5,337,157$ 10,475,737$ 70,914,700$
LIABILITIES AND FUND
BALANCES
LIABILITIES
Accounts payable1,793,670$ -$ 42,611$ 457,848$ 1,248,448$ 434,944$ 3,977,521$
Accrued payroll1,070,282 - 30,103 - - 106,912 1,207,297
Intergovernmental payable- - - - - 14,081 14,081
Due to other funds- 183 - - - - 183
Deferred revenue
Succeeding year property tax17, 2,226,832127,333 - - - 524,797 19,878,962
Other1,786,579 3,499 - 1,555,577 - 1,208,610 4,554,265
Total Liabilities21,777,864 2,230,514 72,714 2,013,425 1,248,448 2,289,344 29,632,309
FUND BALANCES
Reserved for/by
Encumbrances4,646,751 - 439,516 7,704,602 1,987,192 1,033,648 15,811,709
Long-term notes receivable -218,869 9,977,202 - - 383 10,196,454
Advances160,717 - - - - - 160,717
Inventory173,423 - - - - 613,943 787,366
Bond ordinance- - - - - 2,351,738 2,351,738
Debt service- - - - - 75,688 75,688
Franchise/housing agreements- - - - - 151,332 151,332
Endowments- - - - - 69,412 69,412
Unreserved
Designated for
Future equipment and capital
maintenance452,283 - - - - - 452,283
Future cash flow5,687,725 - - - - - 5,687,725
Undesignated reported in
General fund2,482,697 - - - - - 2,482,697
Special revenue funds- 36,147 2,037,619 - - 1,937,256 4,011,022
Capital projects funds- - - (5,010,262) 2,101,517 1,919,720 (989,025)
Permanent funds- - - - - 33,273 33,273
Total Fund Balances13,822,465 36,14712,454,337 2,694,340 4,088,709 8,186,393 41,282,391
Total Liabilities and Fund
Balances35,600,329$ 2,266,661$ 12,527,051$ 4,707,765$ 5,337,157$ 10,475,737$ 70,914,700$
See notes to financial statements. 29
CITY OF DUBUQUE, IOWA
EXHIBIT 3-1
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2010
Total fund balances - governmental funds41,282,391$
Amounts reported for the governmental activities in the statement of
net assets are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets430,200,513$
Accumulated depreciation(94,680,137)
335,520,376
Some of the City's revenues will be collected after year-end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds. Those revenues consist of:
Property tax31,296
Special assessments547,880
Other 3,633,955
4,213,131
Internal service funds are used by the City's management to
charge the costs of equipment maintenance and self-insurance
programs to individual funds. The assets and liabilities
of the internal service funds are included in governmental
activities in the statement of net assets.1,137,803
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(27,887,864)
Tax increment financing bonds(24,449,674)
Notes payable(1,049,696)
Loans payable(282,857)
Accrued interest(264,606)
Compensated absences(2,717,633)
Net OPEB liability(1,566,681)
(58,219,011)
Net assets of governmental activities323,934,690$
See notes to financial statements. 30
CITY OF DUBUQUE, IOWA
EXHIBIT 4
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Special RevenueCapital ProjectsOther
General
EmployeeCommunityStreetGovernmental
Construction
GeneralBenefitsDevelopmentConstructionFundsTotal
REVENUES
Taxes24,366,552$ 1,767,057$ -$ 2,433,742$ -$ 7,684,805$ 36,252,156$
Special assessments- - - - - 318,178 318,178
Licenses and permits1,115,472 - - - - - 1,115,472
Intergovernmental7,231,970 - 3,225,237 5,464,888 594,791 10,793,738 27,310,624
Charges for services7,918,950 - - - - 144,334 8,063,284
Fines and forfeits224,601 - - - - - 224,601
Investment earnings632,101 - 133,545 26,607 74,612 481,750 1,348,615
Contributions2,132,897 - - 21,036 - 180,062 2,333,995
Gaming8,209,761 - - - - - 8,209,761
Miscellaneous1,259,546 - 104,072 988 646 746,582 2,111,834
Total Revenues53,091,850 1,767,057 3,462,854 7,947,261 670,049 20,349,449 87,288,520
EXPENDITURES
Current
Public safety21,844,942 - - - - 134,787 21,979,729
Public works13,216,926 - 99,979 - - 5,934,720 19,251,625
Health and social services701,620 - 85,867 - - 26,122 813,609
Culture and recreation14,719,329 - 133,118 - - 57,070 14,909,517
Community and economic
development2,988,212 - 3,776,896 - - 7,889,708 14,654,816
General government5,757,496 183 - - - 610,629 6,368,308
Debt service305,800 - - - 47,143 5,444,557 5,797,500
Capital projects- - - 7,916,001 4,487,101 2,428,016 14,831,118
Total Expenditures59,534,325 183 4,095,860 7,916,001 4,534,244 22,525,609 98,606,222
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES(6,442,475) 1,766,874 (633,006) 31,260 (3,864,195) (2,176,160) (11,317,702)
OTHER FINANCING
SOURCES (USES)
Issuance of debt1,510,000 - - 40,000 2,195,000 977,176 4,722,176
Discount on bonds(14,182) - - (402) (14,087) (3,319) (31,990)
Premium on bonds- - - - - 554,796 554,796
Issuance of refunding bonds- - - - - 8,885,000 8,885,000
Refunded bonds redeemed - - - - - (9,405,000) (9,405,000)
Transfers in3,046,347 - 1,065,590 1,159,760 393,304 2,328,296 7,993,297
Transfers out(3,410,717) (1,756,235) - (145,387) (1,110,761) (4,139,037) (10,562,137)
Sale of capital assets62,610 - - - - - 62,610
Total Other Financing
Sources (Uses)1,194,058 (1,756,235) 1,065,590 1,053,971 1,463,456 (802,088) 2,218,752
NET CHANGE IN FUND
BALANCES(5,248,417) 10,639 432,584 1,085,231 (2,400,739) (2,978,248) (9,098,950)
FUND BALANCES,
BEGINNING 19,070,882 25,508 12,021,753 1,609,109 6,489,448 11,164,641 50,381,341
FUND BALANCES, ENDING13,822,465$ 36,147$ 12,454,337$ 2,694,340$ 4,088,709$ 8,186,393$ 41,282,391$
See notes to financial statements. 31
CITY OF DUBUQUE, IOWA
EXHIBIT 4-1
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMENT
OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2010
Net change in fund balances - total governmental funds$(9,098,950)
Amounts reported for governmental activities in the statement of activities are
different because:
Capital outlays are reported as expenditures in governmental funds. However, in the
statement of activities, the cost of capital assets is allocated over their estimated useful lives
and reported as depreciation expense. In the current period, these amounts are:
Capital assets expended in governmental funds23,675,353$
Transfers of capital assets from enterprise funds67,695
Transfers of capital assets to enterprise funds(603,617)
Depreciation expense (7,963,129)
15,176,302
In the statement of activities, only the gain or loss on the sale of capital assets is reported,
whereas in the governmental funds, the entire proceeds from the sale increase financial
resources. Thus, the change in net assets differs from the change in fund balances by the
book value of the asset being disposed. (200,175)
Because some revenues will not be collected for several months after the City's
fiscal year ends, they are not considered "available" revenues and are deferred
in the governmental funds. Deferred revenues increased by these amounts this year:
Property tax (3,416)
Special assessments 87,930
Other 1,895,481
1,979,995
Debt proceeds provide current financial resources to governmental funds, but
issuing debt increases long-term liabilities in the statement of net assets.
Repayment of debt principal is an expenditure in the governmental funds,
but it reduces long-term liabilities in the statement of net assets and does not
affect the statement of activities. Also, governmental funds report the effect of
issuance discounts and premiums when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities.
Debt proceeds (13,607,176)
Discounts and premiums on bonds issued(522,806)
Debt repayments 12,056,767
(2,073,215)
Some items reported in the statement of activities do not require the use of
current financial resources and therefore are not reported as expenditures
in governmental funds. These items consist of:
Decrease in accrued interest 16,075
Amortization of bond discount/premium27,763
Increase in compensated absences (123,253)
Increase in net OPEB liability (842,952)
Total additional expenses (922,367)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The net revenue of the internal service funds is
reported with governmental activities.(1,672,654)
Change in net assets of governmental activities$3,188,936
See notes to financial statements. 32
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2010
Business-type Activities -
Sewage
DisposalWaterStormwaterParking
WorksUtilityUtilityFacilities
ASSETS
CURRENT ASSETS
Cash and pooled cash investments3,571,380$ 16,531$ 4,537,978$ 9,871,827$
Receivables
Accounts867,999 767,936 314,847 84,687
Accrued interest9,369 995 8,205 3,474
Intergovernmental1,195,656 - - -
Inventories- 436,315 - -
Prepaid items- 500,000 - -
Total Current Assets5,644,404 1,721,777 4,861,030 9,959,988
NONCURRENT ASSETS
Restricted cash and pooled cash investments- 129,642 - 86,640
Capital assets
Land167,855 59,898 11,835,370 1,388,072
Buildings31,590,936 8,214,651 - 44,129,839
Improvements other than buildings35,977,574 761,957 29,386,973 2,396,647
Machinery and equipment10,625,180 38,185,608 925,265 1,222,091
Construction in progress3,611,819 3,750 2,366,066 527,529
Accumulated depreciation(39,376,206) (20,277,152) (8,713,255) (8,657,985)
Net Capital Assets42,597,158 26,948,712 35,800,419 41,006,193
Total Noncurrent Assets42,597,158 27,078,354 35,800,419 41,092,833
Total Assets48,241,562 28,800,131 40,661,449 51,052,821
EXHIBIT 5
Enterprise FundsGovernmental
America'sOtherActivities-
RiverEnterpriseInternal
ProjectFundsTotalService Funds
$ 956,631-$ 18,954,347$ 2,477,150$
339,767- 2,375,236 1,583
2,565- 24,608 6,005
994,703264,620 2,454,979 4,560
25,435- 461,750 50,875
- 1,059 501,059 1,589
264,620 2,320,160 24,771,979 2,541,762
- - 216,282 -
36,000- 13,487,195 -
1,887,564- 85,822,990 -
-- 68,523,151 -
5,319,323- 56,277,467 101,738
-- 6,509,164 -
- (5,202,817) (82,227,415) (52,456)
- 2,040,070 148,392,552 49,282
- 2,040,070 148,608,834 49,282
264,620 4,360,230 173,380,813 2,591,044
(continued)
33
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2010
Business-type Activities -
Sewage
DisposalWaterStormwaterParking
WorksUtilityUtilityFacilities
LIABILITIES
CURRENT LIABILITIES
Accounts payable426,312$ 710,241$ 201,674$ 314,053$
Accrued payroll64,908 69,777 7,844 26,368
Loans payable - current- - - 19,869
General obligation bonds payable110,000 165,000 475,000 545,000
Revenue bonds payable- 70,000 - -
Capital loan notes payable130,945 37,777 135,359 -
Accrued compensated absences98,985 114,205 4,942 24,066
Accrued interest payable2,518 8,433 34,496 30,941
Due to other funds- - - -
Advances from other funds- 160,717 - -
Total Current Liabilities833,668 1,336,150 859,315 960,297
NONCURRENT LIABILITIES
Loans payable- - - 352,109
General obligation bonds payable 736,774 1,119,426 9,617,322 11,189,280
Revenue bonds payable- 1,045,430 - -
Capital loan notes payable3,852,926 880,983 3,251,631 -
Net OPEB liability92,808 94,781 17,760 31,573
Total Noncurrent Liabilities4,682,508 3,140,620 12,886,713 11,572,962
Total Liabilities5,516,176 4,476,770 13,746,028 12,533,259
NET ASSETS
Invested in capital assets, net of related debt37,826,926 23,630,096 23,745,950 37,562,471
Restricted by bond ordinance- 129,642 - -
Unrestricted4,898,460 563,623 3,169,471 957,091
Total Net Assets 42,725,386$ 24,323,361$ 26,915,421$ 38,519,562$
See notes to financial statements.
EXHIBIT 5
(continued)
Enterprise FundsGovernmental
America'sOtherActivities-
RiverEnterpriseInternal
ProjectFundsTotalService Funds
$ 41,89920,098$ 1,714,277$ 1,403,756$
108,593- 277,490 47,996
-- 19,869 -
-- 1,295,000 -
-- 70,000 -
-- 304,081 -
144,552- 386,750 -
-- 76,388 -
6,46565,297 71,762 1,489
- - 160,717 -
85,395 4,376,334 1,453,241
-- 352,109 -
-- 22,662,802 -
-- 1,045,430 -
-- 7,985,540 -
- 106,560 343,482 -
- 106,560 32,389,363 -
85,395 36,765,697 1,453,241
2,040,070- 124,805,513 49,282
-- 129,642 -
179,225 1,912,091 11,679,961 1,088,521
$ 179,225 3,952,161$ 136,615,116$ 1,137,803$
34
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN FUND NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Business-type Activities -
Sewage
DisposalWaterStormwaterParking
WorksUtilityUtilityFacilities
OPERATING REVENUES
Charges for sales and services5,879,991$ 5,313,043$ 2,273,165$ 2,251,614$
Other13,739 13,159 9,460 148,229
Total Operating Revenues5,893,730 5,326,202 2,282,625 2,399,843
OPERATING EXPENSES
Employee expense2,365,301 2,376,898 305,437 792,818
Utilities596,322 581,967 60 141,672
Repairs and maintenance370,567 157,044 7,497 67,383
Supplies and services1,936,190 1,977,996 1,007,326 1,676,701
Insurance62,550 59,120 - 38,340
Depreciation1,259,365 772,478 393,808 877,147
Total Operating Expenses6,590,295 5,925,503 1,714,128 3,594,061
OPERATING INCOME (LOSS)(696,565) (599,301) 568,497 (1,194,218)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental1,899,492 396,045 208,129 80,121
Investment earnings101,345 26,679 74,570 67,163
Contributions- 4,469 39,825 129,576
Interest expense(41,031) (168,324) (499,016) (409,715)
Gain on disposal of assets21,634 166 - -
Net Nonoperating Revenues (Expenses)1,981,440 259,035 (176,492) (132,855)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS
AND TRANSFERS1,284,875 (340,266) 392,005 (1,327,073)
CAPITAL CONTRIBUTIONS132,551 315,980 684,644 603,617
TRANSFERS IN81,775 - 138,101 843,676
TRANSFERS OUT- - (67,695) -
CHANGE IN NET ASSETS1,499,201 (24,286) 1,147,055 120,220
NET ASSETS, BEGINNING41,226,185 24,347,647 25,768,366 38,399,342
NET ASSETS, ENDING42,725,386$ 24,323,361$ 26,915,421$ 38,519,562$
See notes to financial statements.
EXHIBIT 6
Enterprise FundsGovernmental
America'sOtherActivities-
RiverEnterpriseInternal
ProjectFundsTotalService Funds
$ 3,073,475-$ 18,791,288$ 8,898,696$
7,000 284,562 134,429
7,000 3,166,450 19,075,850 9,033,125
3,019,69919,511 8,879,664 2,262,432
69,323- 1,389,344 20,652
804,462- 1,406,953 20,214
1,184,236403,647 8,186,096 7,768,709
75,126- 235,136 699,235
- 383,107 3,685,905 8,680
423,158 5,535,953 23,783,098 10,779,922
(416,158) (2,369,503) (4,707,248) (1,746,797)
1,180,359381,668 4,145,814 -
24,805- 294,562 70,481
-- 173,870 -
-- (1,118,086) -
- 1,899 23,699 3,662
381,668 1,207,063 3,519,859 74,143
(1,162,440)(34,490) (1,187,389) (1,672,654)
-- 1,736,792 -
1,345,014160,274 2,568,840 -
- - (67,695) -
182,574125,784 3,050,548 (1,672,654)
53,441 3,769,587 133,564,568 2,810,457
$ 179,225 3,952,161$ 136,615,116$ 1,137,803$
35
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Business-type Activities -
Sewage
DisposalWaterStormwaterParking
WorksUtilityUtilityFacilities
CASH FLOWS FROM OPERATING ACTIVITIES
$ 5,364,7126,055,826$ 2,266,377$ 2,229,262$
Cash received from customers
(2,736,245)(3,279,943) (966,725) (1,649,384)
Cash payments to suppliers for goods and services
(2,320,791)(2,315,624) (292,916) (769,437)
Cash payments to employees for services
13,15913,739 9,460 148,229
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
320,835473,998 1,016,196 (41,330)
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
-81,775 138,101 843,676
Transfers from other funds
-- (67,695) -
Transfers to other funds
-- - -
Proceeds from interfund balances
(48,087)- - -
Payment of interfund balances
-- - -
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
(48,087)81,775 70,406 843,676
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
16621,634 - -
Proceeds from sale of capital assets
(2,471,560)(5,798,789) (2,095,189) (650,448)
Acquisition and construction of capital assets
123,6753,034,981 2,480,887 9,310,000
Proceeds from issuance of debt
(264,000)(105,000) (490,000) (483,911)
Payment of debt
(168,171)(40,422) (493,494) (437,973)
Interest paid
4,469- 145,975 129,576
Contributions
396,045703,836 208,129 80,121
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
(2,183,760) (2,379,376) (243,692) 7,947,365
RELATED FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
35,224114,205 79,505 70,189
Interest received
NET INCREASE (DECREASE) IN CASH AND CASH
(2,071,404)(1,513,782) 922,415 8,819,900
EQUIVALENTS
2,217,5775,085,162 3,615,563 1,138,567
CASH AND CASH EQUIVALENTS, BEGINNING
$ 146,1733,571,380$ 4,537,978$ 9,958,467$
CASH AND CASH EQUIVALENTS, ENDING
EXHIBIT 7
Enterprise Funds
Governmental
America'sOtherActivities-
RiverEnterpriseInternal
ProjectFundsTotalService Funds
$ 3,076,436-$ 18,992,613$ 9,061,493$
(2,148,701)(384,473) (11,165,471) (8,613,561)
(2,955,914)(19,511) (8,674,193) (2,257,797)
92,9757,000 284,562 134,429
(396,984) (1,935,204) (562,489) (1,675,436)
1,345,014160,274 2,568,840 -
-- (67,695) -
-65,297 65,297 1,173
(165,988)- (214,075) (1,655)
1,110,950- 1,110,950 -
2,289,976225,571 3,463,317 (482)
1,899- 23,699 3,662
(295,040)- (11,311,026) (13,548)
-- 14,949,543 -
-- (1,342,911) -
-- (1,140,060) -
-- 280,020 -
-117,048 1,505,179 -
(293,141)117,048 2,964,444 (9,886)
26,170- 325,293 80,299
87,801(54,365) 6,190,565 (1,605,505)
868,83054,365 12,980,064 4,082,655
$ 956,631-$ 19,170,629$ 2,477,150$
(continued)
36
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Business-type Activities -
Sewage
DisposalWaterStormwaterParking
WorksUtilityUtilityFacilities
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
$ (696,565) (599,301)$ 568,497$ (1,194,218)$
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
772,4781,259,365 393,808 877,147
Depreciation
Change in assets and liabilities
51,669175,835 (6,788) (22,352)
(Increase) decrease in receivables
(471,312)- - -
(Increase) decrease in inventories and prepaid items
511,194(314,314) 48,158 274,712
Increase (decrease) in accounts payable
11,4355,976 3,781 7,843
Increase in accrued liabilities
44,67243,701 8,740 15,538
Increase in net OPEB liability
920,1361,170,563 447,699 1,152,888
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
$ 320,835473,998$ 1,016,196$ (41,330)$
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contributions of capital assets from other funds and
$ 315,980132,551$ 684,644$ 603,617$
outside sources
$ --$ 67,695$ -$
Contributions of capital assets to Governmental Activities
See notes to financial statements.
EXHIBIT 7
(continued)
Enterprise Funds
Governmental
America'sOtherActivities-
RiverEnterpriseInternal
ProjectFundsTotalService Funds
$ (416,158) (2,369,503)$ (4,707,248)$ (1,746,797)$
383,107- 3,685,905 8,680
2,961- 201,325 158,237
(2,940)- (474,252) (7,199)
(12,614)19,174 526,310 (92,992)
11,343- 40,378 4,635
52,442- 165,093 -
434,29919,174 4,144,759 71,361
$ (396,984) (1,935,204)$ (562,489)$ (1,675,436)$
$ --$ 1,736,792$ -$
$ --$ 67,695$ -$
37
CITY OF DUBUQUE, IOWA
EXHIBIT 8
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2010
Agency
Funds
ASSETS
Cash and pooled cash investments1,099,775$
Accounts receivable5,700
Accrued interest 2,510
Total Assets1,107,985$
LIABILITIES
Accounts payable14,988$
Due to other agency1,092,997
Total Liabilities1,107,985$
See notes to financial statements. 38
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the financial statements of the City and are an integral part
of this report. The index to the notes is as follows:
1.Summary of Significant Accounting Policies
2.Deficit Fund Equity
3.Cash on Hand, Deposits, and Investments
4.Notes Receivable
5.Interfund Balances and Transfers
6.Capital Assets
7.Long-Term Debt
8.Risk Management
9.Commitments and Contingent Liabilities
10.Other Postemployment Benefits (OPEB)
11.Employee Retirement Systems
12.Landfill Closure and Postclosure Care
13.Leases Where City is Lessor
14.Subsequent Events
15.New Governmental Accounting Standards Board (GASB) Standards
39
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six-member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the government-wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E of
the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to provide
solid waste management for the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible for the day-to-day operations
of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end.
Dubuque Initiatives and Subsidiaries is a non-profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque, Iowa, on matters of community interest. The Organization’s articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type. The Organization changed its year end
from June 30 to December 31 on December 31, 2009. Consequently, the information reported in the
government-wide financial statements are as of December 31, 2009 and for the six months then ended.
Complete financial statements for the Component Units may be obtained from the City of Dubuque’s
Finance Department for the Dubuque Metropolitan Area Solid Waste Agency and Economic
Development Office for Dubuque Initiatives and Subsidiaries.
City of Dubuque
th
50 West 13 Street
Dubuque, Iowa 52001
Jointly Governed Organizations
The City participates in several jointly governed organizations that provide goods or services to the
citizenry of the City but do not meet the criteria of a joint venture since there is no ongoing financial
interest or responsibility by the participating governments. City officials are members of the following
boards and commissions:
City of Dubuque Conference Board
Dubuque County E-911 Committee
Dubuque Drug Task Force
(continued on next page) 40
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Government-wide and Fund Financial Statements
The government-wide financial statements (i.e., the statement of net assets and the statement of activities)
report information on all of the nonfiduciary activities of the primary government and its component
units. For the most part, the effect of interfund activity has been removed from these statements.
Governmental activities, which normally are supported by taxes and intergovernmental revenues, are
reported separately from business-type activities, which rely to a significant extent on fees and charges for
services. Likewise, the primary government is reported separately from the legally separate component
units for which the primary government is financially accountable.
The statement of activities demonstrates the degree to which the direct expenses of a given function or
segment are offset by program revenues. Direct expenses are those clearly identifiable with a specific
function or segment. Program revenues include 1) charges to customers or applicants who purchase, use,
or directly benefit from goods, services, or privileges provided by a given function or segment and 2)
grants, contributions, and interest restricted to meeting the operational or capital requirements of a
particular function or segment. Taxes and other items not properly included among program revenues are
reported instead as general revenues.
Separate financial statements are provided for governmental funds, proprietary funds, and a fiduciary
fund, even though the latter is excluded from the government-wide financial statements. Major individual
governmental funds and major individual enterprise funds are reported as separate columns in the fund
financial statements.
Measurement Focus, Basis of Accounting, and Financial Statement Presentation
The government-wide financial statements are reported using the economic resources measurement focus
and the accrual basis of accounting, as are the proprietary fund and fiduciary fund financial statements.
Revenues are recorded when earned and expenses are recorded when a liability is incurred, regardless of
the timing of related cash flows. Property taxes are recognized as revenues in the year for which they are
levied. Grants and similar items are recognized as revenue as soon as all eligibility requirements imposed
by the provider have been met.
Governmental fund financial statements are reported using the current financial resources measurement
focus and the modified accrual basis of accounting. Revenues are recognized as soon as they are both
measurable and available. Revenues are considered to be available when they are collectible within the
current period or soon enough thereafter to pay liabilities of the current period. For this purpose, the City
considers revenues to be available if they are collected within 60 days of the end of the current fiscal
period (year-end). Expenditures generally are recorded when a liability is incurred, as under accrual
accounting. However, debt service expenditures, as well as expenditures related to compensated absences
and claims and judgments, are recorded only when payment is due.
Property taxes, franchise taxes, licenses, interest, special assessments, and grants are susceptible to
accrual. Sales taxes are considered measurable and available at the time the underlying transaction occurs,
provided they are collected by the City within 60 days after year-end. All other revenue items are
considered to be measurable and available only when cash is received by the City.
The City reports the following major governmental funds:
The General Fund is the City’s primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
(continued on next page) 41
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
The Employee Benefits Fund is used to account for pension and related employee benefit costs for
those employees paid wages from the General Fund.
The Community Development Fund is used to account for the use of Community Development
Block Grant funds as received from federal and state governmental agencies.
The Street Construction Fund is used to account for the resources and costs related to street
capital improvements.
The General Construction Fund is used to account for the resources and costs related to
nonassignable capital improvements.
The City reports the following major proprietary funds:
The Sewage Disposal Works Fund is used to account for the operations of the City’s sewage
disposal works and services.
The Water Utility Fund is used to account for the operations of the City’s water facilities and
services.
The Stormwater Utility Fund is used to account for the operations of the City’s stormwater
services.
The Parking Facilities Fund is used to account for the operations of the City-owned parking
ramps and other parking facilities.
The America’s River Project is used to account for the construction of all projects covered by the
Vision Iowa Grant, including all matching funds.
Additionally, the City reports the internal service fund type. Internal service funds are used to account for
general, garage, stores/printing, health insurance, and worker’s compensation insurance services provided
by one department to other departments of the City on a cost-reimbursement basis.
Fiduciary funds account for assets held by the City in a trustee or agency capacity for the benefit of others
and cannot be used to support City activities. Fiduciary funds, other than agency funds, use the economic
resources measurement focus and the full accrual basis of accounting. Agency funds use the full accrual
basis of accounting but do not have a measurement focus and therefore report only assets and liabilities.
The City reports Agency Funds to account for assets held by the City as an agent under the cable
franchise agreement and for the Dubuque Racing Association.
Private-sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government-wide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private-sector guidance for their
business-type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private-sector guidance.
(continued on next page) 42
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
As a general rule the effect of interfund activity has been eliminated from the government-wide financial
statements. Exceptions to this general rule are charges between the City’s water and sewer function and
various other functions of the City. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
Proprietary funds distinguish operating revenues and expenses from nonoperating items. Operating
revenues and expenses generally result from providing services and producing and delivering goods in
connection with a proprietary fund’s principal ongoing operations. The principal operating revenues of
the City’s enterprise funds and of the City’s internal service funds are charges to customers for sales and
services. Operating expenses for enterprise funds and internal service funds include the cost of sales and
services, administrative expenses, and depreciation on capital assets. All revenues and expenses not
meeting this definition are reported as nonoperating revenues and expenses.
When both restricted and unrestricted resources are available for use, it is the City’s policy to use
restricted resources first, then unrestricted resources as they are needed.
Assets, Liabilities, and Equity
Deposits and Investments
The City’s cash, pooled cash investments, and cash equivalents are considered to be cash on hand,
demand deposits, and short-term investments with original maturities of three months or less from the
date of acquisition.
Investments are stated at fair value or amortized cost. Amortized cost is used only for money market
investments that have a remaining maturity at time of purchase of one year or less.
Receivables and Payables
Activity between funds that are representative of lending/borrowing arrangements outstanding at year-end
are referred to as either “due to/from other funds” (i.e., the current portion of interfund loans) or
“advances to/from other funds” (i.e., the non-current portion of interfund loans). All other outstanding
balances between funds are reported as “due to/from other funds.” Any residual balances outstanding
between the governmental activities and business-type activities are reported in the government-wide
financial statements as “internal balances.”
Advances between funds, as reported in the fund financial statements, are offset by a fund balance reserve
account in applicable governmental funds to indicate that they are not available for appropriation and are
not expendable available financial resources.
(continued on next page) 43
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Property tax receivable is recognized in the funds on the levy or lien date, which is the date that the tax
asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax
receivable represents taxes collected by the County but not remitted to the City at June 30, 2010, and
unpaid taxes. The delinquent year property tax receivable represents taxes collected by the County but not
remitted to the City at June 30, 2010, and unpaid taxes. The succeeding year property tax receivable
represents taxes certified by the City to be collected in the next fiscal year for the purposes set out in the
budget for the next fiscal year. By statute, the City is required to certify its budget to the County Auditor
by March 15 of each year for the subsequent fiscal year. However, by statute, the tax asking and budget
certification for the following fiscal year becomes effective on the first day of that year. Although the
succeeding year property tax receivable has been recorded, the related revenue is deferred in both the
government-wide and fund financial statements and will not be recognized as revenue until the year for
which it is levied.
Property taxes are levied as of July 1 on property values assessed as of January 1 of the previous year.
The tax levy is divided into two billings. The billings are due September 1 and March 1. On September 30
and March 31, the bill becomes delinquent, and penalties and interest may be assessed by the City.
Inventories and Prepaid Items
Inventories included in the governmental funds are valued at cost using the first-in first-out (FIFO)
method. The costs of governmental fund inventories are recorded as expenditures when consumed rather
than when purchased.
Inventories of materials and supplies in the enterprise funds are determined by actual count and priced on
the FIFO method.
Inventories included in internal service funds are stated at the lower of cost (FIFO method) or market and
consist of consumable supplies. The cost of these supplies is recorded as an expense at the time they are
removed from inventory for use.
Certain payments to vendors reflect costs applicable to future accounting periods and are recorded as
prepaid items. The costs of governmental fund prepaids are recorded as expenditures when consumed
rather than when purchased.
Restricted Assets
Certain proceeds of the City's enterprise fund revenue bonds, as well as certain resources set aside for
their repayment, are classified as restricted assets on the balance sheet/statement of net assets because
their use is limited by applicable bond covenants. The "revenue bond operating" account is used to report
resources set aside to subsidize potential deficiencies from the enterprise fund's operation that could
adversely affect debt service payments. The "revenue bond sinking" account is used to segregate
resources accumulated for debt service payments over the next twelve months. The "revenue bond
reserve" account is used to report resources set aside to make up potential future deficiencies in the
revenue bond sinking account.
Certain assets of the special revenue funds and capital project funds are classified as restricted assets
because their use is limited by debt agreements, the City's cable television franchise agreement and Iowa
Finance Authority housing program agreement.
Certain assets of the Dubuque Metropolitan Area Solid Waste Agency are classified as restricted assets
because their use is restricted by state statute for certain specified uses.
(continued on next page) 44
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Capital Assets
Capital assets, which include property, plant, equipment, intangibles, and infrastructure assets (e.g., roads,
bridges, sidewalks, and similar items), are reported in the applicable governmental or business-type
activities columns in the government-wide statement of net assets and in the proprietary funds statement
of net assets. Capital assets are defined by the government as assets with an initial, individual cost of
more than $100,000 for infrastructure and intangible assets, $20,000 for building assets, and $10,000 for
the remaining assets, and an estimated useful life of more than a year. Such assets are recorded at
historical cost or estimated historical cost if purchased or constructed. Donated capital assets are recorded
at estimated fair market value at the date of donation. The costs of normal maintenance and repair not
adding to the value of the asset or materially extending asset lives are not capitalized. All of the City’s
infrastructure has been recorded, including infrastructure acquired prior to June 30, 1980.
Major outlays for capital assets and improvements are capitalized as projects are constructed. Interest
incurred during the construction phase of capital assets of business-type activities is not included as part
of the capitalized value of the assets constructed.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight-line method over the following estimated useful lives:
Assets Years
Buildings 40 to 125
Improvements other than buildings 15 to 50
Machinery and equipment 2 to 30
Infrastructure and intangibles 15 to 75
Compensated Absences
The City allows employees to accumulate a limited amount of earned but unused vacation and sick pay
benefits. Vacation pay is payable to employees upon retirement or termination. Sick pay is payable only
upon retirement, in which event employees are paid for 25% of all eligible hours (50% in the case of
police and fire employees). All vacation pay and applicable sick pay benefits are accrued when incurred
in the government-wide and proprietary fund financial statements. A liability for these amounts is
reported in governmental funds only if they have matured, for example, as a result of employee
resignations and retirements.
Long-Term Obligations
In the government-wide financial statements and proprietary fund types in the fund financial statements,
long-term debt and other long-term obligations are reported as liabilities in the applicable governmental
activities, business-type activities, or proprietary fund type statement of net assets. Bond premiums and
discounts, bond issuance costs, and deferred amounts on refunding are deferred and amortized over the
life of the bonds using the straight-line method. Bonds payable are reported net of the applicable bond
premium or discount and deferred amount on refundings.
In the fund financial statements, governmental fund types recognize bond premiums and discounts, as
well as bond issuance costs, during the current period. The face amount of debt issued is reported as other
financing sources. Premiums received on debt issuances are reported as other financing sources while
discounts on debt issuances are reported as other financing uses. Issuance costs, whether or not withheld
from the actual debt proceeds received, are reported as debt service expenditures.
(continued on next page) 45
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Equity
The Dubuque Metropolitan Area Solid Waste Agency’s restricted net assets represent outside third-party
restrictions and amounts restricted for minority interest of the Agency. The Agency is restricted to using
certain amounts for purposes specified by state statute. The net assets restricted for minority interest is
calculated at 22.7% of unrestricted net assets, based on the 1976 revenue bond resolution authorizing the
issuance of revenue bonds for the construction of the landfill.
In the governmental fund financial statements, reservations of fund balance are reported for amounts not
available for appropriation or legally restricted by outside parties for use for a specific purpose.
Designations of fund balance represent tentative management plans that are subject to change.
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
During the year ended June 30, 2010, disbursements exceeded the amounts budgeted in the community
and economic development function.
Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
NOTE 2 – DEFICIT FUND EQUITY
The following funds have deficit net asset amounts as of June 30, 2010:
Internal Service
General Service $ 18,559
Workers’ Compensation Reserve $ 853,783
The General Service deficit will be addressed during next fiscal year’s reallocation of expenses. The
Worker’s Compensation Reserve deficit is a result of a number of projected settlements at fiscal year-end
that will be paid during next fiscal year with additional funding to cover.
NOTE 3 – CASH ON HAND, DEPOSITS, AND INVESTMENTS
Cash on Hand.
Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year-end was $10,346 for the City and $450 for the Dubuque
Metropolitan Area Solid Waste Agency.
Deposits.
At year-end, the City's carrying amount of deposits was $23,766,207, and the bank balance was
$25,811,986. The City’s deposits in banks at June 30, 2010, were entirely covered by federal depository
insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter
provides for additional assessments against the depositories to insure there will be no loss of public funds.
(continued on next page) 46
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
The carrying amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$10,681,465, and the bank balance was $11,003,431. The Agency’s deposits in banks at June 30, 2010,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
Investments.
As of June 30, 2010, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturities (In Years)
Investment Type Less than 1 1 to 5 6 to 10 More than 10 Total
Money Market Funds –
U.S. Treasury $ 3,332,518 $ - $ - $ - $ 3,332,518
U.S. Treasury Securities 4,186,125 3,058,431 1,051,277 2,329,519 10,625,352
Federal Agency Obligations 2,624,975 3,750,488 2,152,810 6,401,921 14,930,194
Corporate Stock 56,879 - - - 56,879
$ 10,200,497 $ 6,808,919 $ 3,204,087 $ 8,731,440 $ 28,944,943
The City and the Dubuque Metropolitan Solid Waste Agency are authorized by statute to invest public
funds in obligations of the United States government, its agencies and instrumentalities; certificates of
deposit or other evidences of deposit at federally insured depository institutions approved by the City
Council or Board of Trustees and the Treasurer of the State of Iowa; prime eligible bankers acceptances;
certain high rated commercial paper; perfected repurchase agreements; certain registered open-end
management investment companies; certain joint investment trusts; and warrants or improvement
certificates of a drainage district.
Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Permanent Trust
Fund.
Interest Rate Risk. The City’s investment policy limits the investment of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Risk. The City’s investment policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City’s investments in U.S. Treasury Money Market Funds and Federal
Agency Obligations were rated AAA.
Concentration of Credit Risk. The City’s investment policy does not allow for a prime bankers’
acceptance or commercial paper and other corporate debt balances to be greater than ten percent of its
total deposits and investments. The policy also limits the amount that can be invested in a single issue to
five percent of its total deposits and investments. The City held no such investments during the year.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the City’s deposits may not be returned to it. The City’s deposits are entirely covered by federal
depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa.
This chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
(continued on next page) 47
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Custodial Credit Risk – Investments. For an investment, this is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City had no custodial risk with regards to investments,
since all investments were held by the City or its agent in the City’s name.
Due to legal and budgetary reasons, the general fund is assigned a portion of the investments earnings
associated with other funds. These funds are the employee benefits, community development, tort
liability, road use tax, cable TV, general construction, transit system, general service, garage service, and
stores/printing funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2010.
A reconciliation of cash and investments as shown on the government-wide statement of net assets for the
primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 10,346
Carrying amount of deposits 23,766,207
Carrying amount of investments 28,944,943
Total$ 52,721,496
Government-wide
Cash and pooled cash investments $ 47,821,562
Cash and pooled cash investments – temporarily restricted 3,730,747
Cash and pooled cash investments – permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 1,099,775
Total$ 52,721,496
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 $ 450
Carrying amount of deposits 10,681,465
Total$ 10,681,915
Cash and pooled cash investments $ 6,769,203
Cash and pooled cash investments – temporarily restricted 3,912,712
Total$ 10,681,915
(continued on next page) 48
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Dubuque Initiatives and Subsidiaries.
At December 31, 2009, Dubuque Initiatives and Subsidiaries had
the following cash and investments:
Deposits$ 22,790,567
Repurchase agreement 624,434
Beneficial interest in assets held by others 934,523
Total$ 24,349,524
A reconciliation of cash and investments as shown on the government-wide statement of net assets for
Dubuque Initiatives and Subsidiaries follows:
Cash and pooled cash investments $ 23,131,590
Cash and pooled cash investments – temporarily restricted 1,217,934
Total$ 24,349,524
NOTE 4 – NOTES RECEIVABLE
At December 30, 2009, Dubuque Initiatives and Subsidiaries had the following notes receivable:
Grand River Development, LLC, 5.50%, unsecured, matures May 2017 $ 309,860
Lower Main Development, 4.00%, unsecured, matures August 2018 124,645
City of Dubuque, 5.00%, unsecured, matures July 2023 371,977
Roshek Building Investment Fund, LLC, 4.74%, collateralized by a
pledge agreement, matures June 2039 6,500,000
Roshek Building Investment Fund, LLC, 4.74%, collateralized by a
pledge agreement, matures June 2039 9,797,991
Roshek Building Investment Fund, LLC, 4.74%, collateralized by a
pledge agreement, matures June 2039 5,294,384
Total notes receivable 22,398,857
Less: current maturities (66,944)
Noncurrent portion $ 22,331,913
NOTE 5 – INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2010, include amounts due to/from other funds and advances due to/from
other funds. Due to/from other funds balances represent amounts due to the general fund from the
employee benefits fund ($183), America’s River Project ($65,297), nonmajor enterprise funds ($6,465)
and the internal service funds ($1,489) for deficit pooled cash balances. Advances to/from other fund
balance of $160,717 represent amounts due to the general fund from the water utility fund for a
construction loan.
(continued on next page) 49
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Interfund transfers for the year ended June 30, 2010, consisted of the following:
Transfer from
Nonmajor
EmployeeStreetGeneralGovernmental
GeneralBenefitsConstructionConstructionFundsTotal
Transfer to
General-$ 1,756,235$ 99,638$ -$ 1,190,474$ 3,046,347$
Community development- - - 300,000 765,590 1,065,590
Street construction364,812 - - - 794,948 1,159,760
General construction189,677 - - - 203,627 393,304
Nonmajor governmental1,230,919 - 45,749 6,546 1,045,082 2,328,296
Sewage disposal works21,502 - - - 60,273 81,775
Stormwater utility123,380 - - - 14,721 138,101
Parking facilities- - - 804,215 39,461 843,676
America's River Project160,274 - - - - 160,274
Nonmajor enterprise1,320,153 - - - 24,861 1,345,014
$ 1,756,2353,410,717$ 145,387$ 1,110,761$ 4,139,037$ 10,562,137
Transfer to governmental activities capital assets from enterprise funds67,695
$10,629,832
In the fund financial statements, total transfers out of $10,629,832 are greater than total transfers in of
$10,652,137 because of the treatment of transfers of capital assets to the governmental activities capital
assets. During the year, capital assets related to street construction with a book value of $67,695 were
transferred to governmental activities capital assets. No amounts were reported in the governmental
funds, as the amounts did not involve the transfer of financial resources. However, the Stormwater Utility
did report transfers out for the capital resources given.
Transfers are used to (1) move revenues from the fund that statute or budget requires to collect them to
the fund that statute or budget requires to expend them, (2) move receipts restricted to debt service from
the funds collecting the receipts to the debt service fund as debt service payments become due, (3) use
unrestricted revenues collected in the general fund to finance various programs accounted for in other
funds in accordance with budgetary authorizations, and (4) fund capital projects.
Transfers from governmental activities to the business-type activities on the statement of activities
includes the transfer of the Port of Dubuque Parking Facility in the amount of $603,617. This transaction
is reported as a capital contribution in the Parking Facilities Proprietary Fund.
(continued on next page) 50
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 6 – CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2010, was as follows:
Primary Government:
Governmental activities:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets, not being
depreciated:
Land $ 58,392,908 $ - $ - $ 379,608 $ - $ 58,772,516
Construction in progress 6,138,618 - - 20,852,239 (9,403,869) 17,586,988
Total capital assets, not
being depreciated 64,531,526 - - 21,231,847 (9,403,869) 76,359,504
Capital assets, being
depreciated:
Buildings 109,118,439 - (603,617) 5,044,902 (124,000) 113,435,724
Improvements other
than buildings 15,535,320 - - - - 15,535,320
Machinery and equipment 31,100,111 81,836 (14,141) 2,792,113 (1,505,744) 32,454,175
Infrastructure 188,493,620 - - 4,023,908 - 192,517,528
Total capital assets, being
depreciated 344,247,490 81,836 (617,758) 11,860,923 (1,629,744) 353,942,747
Less accumulated
depreciation for:
Buildings (23,932,773) - - (1,842,657) 124,000 (25,651,430)
Improvements other
than buildings (5,540,700) - - (497,512) - (6,038,212)
Machinery and equipment (13,286,160) (11,784) 11,784 (3,903,626) 1,305,569 (15,884,217)
Infrastructure (45,430,720) - - (1,728,014) - (47,158,734)
Total accumulated
depreciation (88,190,353) (11,784) 11,784 (7,971,809) 1,429,569 (94,732,593)
Total capital assets, being
depreciated, net 256,057,137 70,052 (605,974) 3,889,114 (200,175) 259,210,154
Governmental activities
capital assets, net $ 320,588,663 $ 70,052 $ (605,974) $ 25,120,961 $ (9,604,044) $ 335,569,658
Business-type activities:
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets, not being
depreciated:
Land $ 6,227,014 $ - $ - $ 7,260,181 $ - $ 13,487,195
Construction in progress 9,558,839 - (67,695) 10,527,361 (13,509,341) 6,509,164
Total capital assets, not
being depreciated 15,785,853 - (67,695) 17,787,542 (13,509,341) 19,996,359
(continued on next page) 51
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
Capital assets, being
depreciated:
Buildings $ 85,114,689 $ 603,617 $ - $ 104,684 $ - $ 85,822,990
Improvements other
than buildings 63,968,022 - - 4,555,129 - 68,523,151
Machinery and equipment 52,962,217 - - 3,573,882 (258,632) 56,277,467
Total capital assets, being
depreciated 202,044,928 603,617 - 8,233,695 (258,632) 210,623,608
Less accumulated
depreciation for:
Buildings (38,904,839) - - (1,288,533) - (40,193,372)
Improvements other
than buildings (18,089,731) - - (1,161,799) - (19,251,530)
Machinery and equipment (21,805,572) - - (1,235,573) 258,632 (22,782,513)
Total accumulated
depreciation (78,800,142) - - (3,685,905) 258,632 (82,227,415)
Total capital assets, being
depreciated, net 123,244,786 603,617 - 4,547,790 - 128,396,193
Business-type activities
capital assets, net $ 139,030,639 $ 603,617 $ (67,695) $ 22,335,332 $ (13,509,341) $ 148,392,552
Depreciation expense was charged to functions/programs for the primary government as follows:
Governmental activities:
Public safety $ 954,714
Public works 4,841,096
Health and social services 7,220
Culture and recreation 1,704,328
Community and economic development 40,957
General government 414,814
Capital assets held by the government’s internal service funds are
charged to various functions based on their usage of their assets 8,680
Total depreciation expense – governmental activities $ 7,971,809
Business-type activities:
Sewage disposal works $ 1,259,365
Water utility 772,478
Stormwater utility 393,808
Parking facilities 877,147
Refuse collection 74,387
Transit system 308,720
Total depreciation expense – business-type activities $ 3,685,905
(continued on next page) 52
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Component Unit:
Beginning Ending
Balance Increases Decreases Balance
Dubuque Metropolitan Area Solid
Waste Agency:
Capital assets, not being depreciated:
Land $ 1,586,092 $ - $ - $ 1,586,092
Construction in progress - 190,878 - 190,878
Total capital assets, not being
depreciated 1,586,092 190,878 - $ 1,776,970
Capital assets, being depreciated:
Buildings 65,922 - - 65,922
Improvements other than buildings 7,468,652 - (1,103,746) 6,364,906
Machinery and equipment 2,780,821 61,900 (21,783) 2,820,938
Total capital assets, being depreciated 10,315,395 61,900 (1,125,529) 9,251,766
Less accumulated depreciation for:
Buildings (46,506) (719) - (47,225)
Improvements other than buildings (6,005,260) (435,385) 1,103,746 (5,336,899)
Machinery and equipment (1,019,014) (328,124) 21,783 (1,325,355)
Total accumulated depreciation (7,070,780) (764,228) 1,125,529 (6,709,479)
Total capital assets, being depreciated, net 3,244,615 (702,328) - 2,542,287
Dubuque Metropolitan Area Solid
Waste Agency capital assets, net $ 4,830,707 $ (511,450) $ - $ 4,319,257
Depreciation expense of $764,228 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
NOTE 7 – LONG-TERM DEBT
General Obligation Bonds.
The City issues general obligation bonds to provide funds for the acquisition
and construction of major capital facilities. General obligation bonds have been issued for both
governmental and business-type activities. The original amount of general obligation bonds issued in
prior years was $36,225,000.
During Fiscal Year 2010, the City issued $8,885,000 to current refund two outstanding issuances. The
refunding was undertaken to reduce total future debt service payments. The transaction resulted in an
economic gain of $1,080,778 and a reduction of $1,279,349 in future debt service payment.
General obligation bonds are direct obligations and pledge the full faith and credit of the City. These
bonds generally are issued as serial bonds with varying amounts of principal maturing annually and with
interest payable semi-annually. General obligation bonds outstanding at June 30, 2010, are as follows:
(continued on next page) 53
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Corporate purpose 03/26/02 06/01/03-06/01/21 4.20-5.00% $ 1,000,000 $ 690,000
Corporate purpose
and refunding 12/03/02 06/01/03-06/01/17 3.65-4.30 3,105,000 1,285,000
Corporate purpose 10/15/03 06/01/04-06/01/23 3.40-4.75 2,110,000 1,510,000
Corporate purpose 04/18/05 06/01/06-06/01/24 3.40-5.00 9,015,000 6,980,000
Corporate purpose 04/03/06 06/01/07-06/01/25 3.80-4.20 2,900,000 2,480,000
Corporate purpose 04/03/06 06/01/07-06/01/21 3.70-4.20 910,000 725,000
Refunding 04/03/06 06/01/10-06/01/20 3.70-4.10 3,525,000 3,360,000
Corporate purpose
and refunding 12/01/07 06/01/10-06/01/17 3.75 2,965,000 2,645,000
Corporate purpose 12/01/07 06/01/09-06/01/17 3.45-3.65 1,055,000 850,000
Corporate purpose 11/04/08 06/01/09-06/01/28 3.75-4.80 3,885,000 3,645,000
Corporate purpose 11/04/08 06/01/09-06/01/23 3.75-4.25 3,290,000 2,980,000
Corporate purpose
(taxable) 11/04/08 06/01/09-06/01/18 5.25-5.50 2,465,000 2,260,000
Corporate purpose
(taxable) 11/10/09 06/01/11-06/01/29 1.90-5.60 2,935,000 2,935,000
Corporate purpose
(taxable) 11/10/09 06/01/11-06/01/29 1.50-5.50 11,175,000 11,175,000
Refunding 11/10/09 06/01/10-06/01/21 2.00-4.00 8,885,000 8,245,000
$ 59,220,000 $ 51,765,000
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year Ending Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2011 $ 1,970,000 $ 1,124,206 $ 1,295,000 $ 1,026,507
2012 2,059,018 1,060,570 1,290,982 989,010
2013 2,087,589 990,470 1,347,411 947,174
2014 2,352,589 913,866 1,392,411 902,269
2015 2,447,054 822,049 1,437,946 851,736
2016-2020 12,208,750 2,524,675 7,701,250 3,379,974
2021-2025 3,450,000 558,626 6,120,000 1,805,219
2026-2029 965,000 134,282 3,640,000 469,167
Total $ 27,540,000 $ 8,128.744 $ 24,225,000 $ 10,371,056
Tax Increment Financing Bonds.
The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges property tax revenues from the tax increment financing districts
to pay debt service. These bonds are generally issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi-annually. The original amount of tax increment
financing bonds issued in prior years was $27,593,538. Tax increment financing bonds outstanding at
June 30, 2010, are as follows:
(continued on next page) 54
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
Advanced Data-
Comm 03/18/99 12/31/01-06/30/11 6.0% $ 900,000 $ 46,333
Cartegraph Systems 12/01/99 12/31/01-12/31/10 8.8 360,000 9,905
Eagle Window &
Door 02/15/00 12/31/02-06/30/12 9.1 3,168,538 877,281
Vessel Systems 12/30/03 12/30/05-06/30/15 8.0 140,000 83,521
Diamond Jo Parking
Ramp 10/16/07 06/01/11-06/01/37 7.5 23,025,000 23,025,000
40 Main LLC 08/06/09 06/01/11-06/01/37 6.5 647,176 647,176
$ 28,240,714 $ 24,689,216
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Ending Governmental Activities
June 30 Principal Interest
2011 $ 774,204 $ 1,848,552
2012 829,649 1,787,053
2013 400,725 1,727,917
2014 430,605 1,698,288
2015 460,957 1,666,234
2016-2020 2,760,607 7,783,688
2021-2025 3,467,469 6,647,279
2026-2030 4,910,000 5,153,625
2031-2035 7,045,000 3,014,625
2036-2037 3,610,000 411,000
Total $ 24,689,216 $ 31,738,261
Revenue Bonds.
The City also issues bonds where the City pledges income derived from the acquired or
constructed assets to pay debt service. These bonds are generally issued as serial bonds with varying
amounts of principal maturing annually and with interest payable semi-annually. Revenue bonds
outstanding at June 30, 2010, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Water utility 11/04/08 06/01/10-06/01/23 3.00-5.00 $ 1,195,000 $ 1,125,000
(continued on next page) 55
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year Ending Business-type Activities
June 30 Principal Interest
2011 $ 70,000 $ 49,608
2012 70,000 47,333
2013 75,000 44,883
2014 75,000 42,070
2015 80,000 39,070
2016-2020 440,000 141,133
2021-2023 315,000 31,795
Total $ 1,125,000 $ 395,892
Notes Payable.
Notes payable have been issued to provide funds for economic development and for the
purchase of capital assets. Notes payable at June 30, 2010, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
Adams Company 02/13/04 06/01/05-06/01/15 4.07% $ 500,000 $ 227,273
Lower Main
Development 06/30/04 12/31/06-06/30/16 8.00 182,000 125,129
Theisen Supply 11/22/06 12/31/08-06/30/18 8.25 810,323 697,294
$ 1,492,323 $ 1,049,696
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year Ending Governmental Activities
June 30 Principal Interest
2011 $ 126,973 $ 75,044
2012 133,792 66,374
2013 141,183 55,284
2014 149,191 45,425
2015 157,870 35,822
2016-2018 340,687 48,368
Total $ 1,049,696 $ 326,317
Capital Loan Notes.
Revenue capital loan notes have been issued for the planning and construction of
sewer, stormwater, and water capital projects through the State of Iowa State Revolving Loan Funds. The
City has pledged income derived from the acquired or constructed assets to pay debt service. During
2010, the City received $823,045 in forgivable capital loan notes not reflected in the following amounts.
(continued on next page) 56
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Amount
Date Final Interest Amount Outstanding
Planning Authorized Maturity Date Rates Authorized End of Year
Upper Bee Branch
Storm Project 12/28/06 06/01/30 3.25% $ 1,657,821 $ 1,268,820
Water Pollution
Control Plant
Study 12/28/06 06/01/30 3.25 95,500 95,500
Water Pollution
Control Plant
Design 03/11/09 06/01/30 3.25 3,200,000 3,200,000
Clean Water 01/14/09 06/01/28 3.25 1,847,000 1,699,000
Drinking Water 10/18/07 06/01/28 3.25 1,037,000 842,000
North Catfish
Creek Stromwater 01/13/09 06/01/30 3.25 800,000 419,170
North Catfish
Creek Sewer 01/13/09 06/01/30 3.25 912,000 688,371
Water Meter
Replacement 02/12/10 06/01/30 3.25 7,676,000 76,760
$ 17,225,321 $ 8.289,621
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year Ending Business-Type Activities
June 30 Principal Interest
2011 $ 304,081 $ 267,734
2012 323,806 257,477
2013 333,844 246,896
2014 346,112 235,988
2015 357,619 224,679
2016-2020 1,969,590 940,440
2021-2025 2,311,779 599,941
2026-2030 2,342,790 199,781
Total $ 8,289,621 $ 2,972,936
At June 30, 2010, the City of Dubuque had $9,119,894 of capital loan note funds available, which
includes forgivable proceeds of $603,955. These funds are available to the City by filing a disbursement
request with the State of Iowa. The City expects to use the remaining available funds in fiscal year 2011.
Loans Payable.
Loans payable have been issued to fund several City projects.
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Parking Lot
Purchase 07/08/08 01/01/09-07/01/23 5% $ 400,000 $ 371,978
Building Purchase
Agreement 02/01/10 02/01/10-02/01/16 0 330,000 282,857
$ 730,000 $ 654,835
(continued on next page) 57
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year Ending Governmental Activities Business-type Activities
June 30 Principal Interest Principal Interest
2011 $ 47,143 $ - $ 19,869 $ 18,354
2012 47,143 - 20,874 17,348
2013 47,143 - 21,931 16,291
2014 47,143 - 23,041 15,181
2015 47,143 - 24,208 14,014
2016-2020 47,142 - 140,711 50,400
2021-2024 - - 121,344 12,434
Total $ 282,857 $ - $ 371,978 $ 144,022
Changes in Long-term Liabilities.
Long-term liability activity for the year ended June 30, 2010, was as
follows:
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Governmental activities:
General obligation
bonds $ 26,080,000 $ 12,530,000 $ (11,070,000) $ 27,540,000 $ 1,970,000
Less:
Unamortized discounts (78,789) (54,534) 10,011 (123,312) -
Deferred amount on
refunding (59,518) 554,796 (24,102) 471,176 -
Total general
obligation bonds 25,941,693 13,030,262 (11,084,091) 27,887,864 1,970,000
Tax increment financing
bonds 24,611,676 647,176 (569,636) 24,689,216 774,204
Less:
Unamortized discounts (248,414) - 8,872 (239,542) -
Total tax increment
financing bonds 24,363,262 647,176 (560,764) 24,449,674 774,204
Notes payable 1,169,684 - (119,988) 1,049,696 126,973
Loans payable 150,000 430,000 (297,143) 282,857 47,143
Compensated absences 2,594,380 2,374,573 (2,251,320) 2,717,633 2,717,633
Net OPEB liability 723,729 842,952 - 1,566,681 -
$ 54,942,748 $ 17,324,963 $(14,313,306) $ 57,954,405 $ 5,635,953
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type activities:
General obligation
bonds $ 14,655,000 $ 10,465,000 $ (895,000) $ 24,225,000 $ 1,295,000
Less:
Unamortized discounts (108,114) (80,223) 10,335 (178,002) -
Deferred amount on
refunding (98,116) - 8,920 (89,196) -
Total general
obligation bonds 14,448,770 10,384,777 (875,745) 23,957,802 1,295,000
Revenue bonds 1,445,000 - (320,000) 1,125,000 70,000
Unamortized discounts (10,287) - 717 (9,570) -
Total revenue bonds 1,434,713 - (319,283) 1,115,430 70,000
(continued on next page) 58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Beginning Ending Due Within
Balance Additions Reductions Balance One Year
Business-type activities: (continued)
Capital loan notes $ 3,914,076 $ 4,484,545 $ (109,000) $ 8,289,621 $ 304,081
Loans payable 390,890 - (18,912) 371,978 19,869
Compensated absences 384,609 335,892 (333,751) 386,750 386,750
Net OPEB liability 178,389 165,093 - 343,482 -
$ 20,751,447 $ 15,370,307 $ (1,656,691) $ 34,465,063 $ 2,075,700
For the governmental activities, compensated absences are generally liquidated by the General Fund,
Community Development Fund, and Section VIII Housing Fund.
Dubuque Initiatives and Subsidiaries.
At December 31, 2009, Dubuque Initiatives and Subsidiaries had
the following notes and loan payable:
Note payable to Dubuque Bank & Trust (Loan A), with the
following interest rate provisions: fixed interest rate of 5.85%
during the “Fixed Interest Rate Period”; during the “Initial
Loan A Variable Interest Rate Period”, an interest rate equal
to the greater of the “Loan A Index Rate” plus 2.75% and
5.00%; during the “Second Loan A Variable Interest Rate
Period”, an interest rate equal to the “Loan A Index Rate”
plus 2.75%. Monthly interest only payments are due with
final principal and interest due at maturity on June 15, 2029.* $ 5,294,384
Note payable to Dubuque Bank & Trust (Loan B), with the
following interest rate provisions: fixed interest rate of 5.85%
during the “Fixed Interest Rate Period”, during the “Variable
Interest Period: an interest rate equal to the “Loan A Index
Rate” plus 2.75%. Monthly interest only payments due until
March 2010, principal and interest payments of $54,167 begin
on April 1, 2010. This note matures on June 15, 2019.* 6,500,000
Note payable to Dubuque Bank & Trust (Loan C), interest rate
equal to the greater of Prime Rate plus 0.50% or 3.99%.
Monthly interest only payments are due with final principal
and interest due at maturity on December 31, 2010.** 9,797,991
Note payable to Dubuque Bank & Trust (Loan D), interest rate
equal to the greater of Prime Rate plus 0.50% or 3.99%.
Monthly interest only payments are due with final principal
and interest due at maturity on October 31, 2011.* 10,651,055
Note payable to ICD VIII, LLC (QLICI QA1 Loan), fixed
interest rate of 4.74%. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039.*** 5,897,192
(continued on next page) 59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
Note payable to USBCDE Sub-CDE XXXV, LLC (QLICI
QA2 Loan), fixed interest rate of 4.47%. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039.*** $ 5,897,192
Note payable to ICD VIII, LLC (QLICI QB1 Loan), fixed
interest rate of 1.80%. Monthly interest only payments are due
with final principal and interest due at maturity on June 1, 2039.*** 3,902,808
Note payable to USBCDE Sub-CDE XXXV, LLC (QLICI
QB2 Loan), fixed interest rate of 1.80%. Monthly interest only
payments are due with final principal and interest due at
maturity on June 1, 2039.*** 4,002,808
51,943,430
Less: Current maturities (9,797,991)
Noncurrent liability $ 42,145,439
The following is a schedule by years of the principal maturities of long-term debt obligations for the years
ending June 30:
2010 $ 9,797,991
2011 10,651,055
2012 -
2013 -
2014 -
Thereafter 31,494,384
$ 51,943,430
* - Notes A, B, and D payable to Dubuque Bank & Trust are collateralized by a security agreement
dated June 22, 2009, a collateral assignment of tax credit purchase agreement dated June 22, 2009, and a
collateral assignment of fund loan documents dated June 22, 2009.
** - Note C payable to Dubuque Bank & Trust is collateralized by a security agreement dated June 22,
2009, and a collateral assignment of federal historic tax credit bridge loan documents dated June 22,
2009.
*** - These notes payable to various entities are collateralized by, among other things, a certain Open-End
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing of even date
herewith executed by Borrower, as Mortgagor, to Administrative Agent, in its capacity as the
Administrative Agent for the Lenders and for the benefit of the Lenders, as Mortgagee, encumbering the
Property.
Forgivable loan. On February 19, 2009, the City of Dubuque was awarded a grant from the Iowa
Department of Economic Development in the amount of $450,000. The City of Dubuque awarded the
grant to Dubuque Initiatives & Subsidiaries to assist the Organization in starting the Roshek Building
project. The grant is a “forgivable loan”. The funds will be released on a reimbursement basis, upon the
City of Dubuque submitting paperwork to Iowa Department of Economic Development documenting
$450,000 in building related costs. If the Iowa Department of Economic Development considers the
project to meet the reimbursement requirements, the loan will become forgivable on July 1, 2011. The
balance of the forgivable loan at December 31, 2009, was $450,000.
(continued on next page) 60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 8 – RISK MANAGEMENT
The City is exposed to various risks of loss related to torts; theft of, damage to, and destruction of assets;
errors and omissions; and natural disasters for which the government carries commercial insurance
purchased from independent third parties and participates in a local government risk pool. The City
assumes liability for any deductibles and claims in excess of coverage limitations.
The City has established a Health Insurance Reserve Fund for insuring benefits provided to City
employees and covered dependents which is included in the Internal Service Fund Type. Health benefits
were self-insured up to an individual stop-loss amount of $90,000, and an aggregate stop-loss of
$7,021,089 for 2010. Coverage from a private insurance company is maintained for losses in excess of the
stop-loss amount. All claims handling procedures are performed by a third-party claims administrator.
Incurred but not reported claims have been accrued as a liability based upon the claims administrator’s
estimate. Settled claims have not exceeded commercial coverage in any of the past three fiscal years. The
estimated liability does not include any allocated or unallocated claims adjustment expense.
The City has established a Workers’ Compensation Reserve Fund for insuring benefits provided to City
employees which is included in the Internal Service Fund Type. Workers’ compensation benefits were
self-insured up to a specific stop-loss amount of $500,000, and an aggregate-stop loss consistent with
statutory limits for 2010. Coverage from a private insurance company is maintained for losses in excess
of the stop-loss amount. All claims handling procedures are performed by a third-party claims
administrator. Incurred but not reported claims have been accrued as a liability based upon the claims
administrator’s estimate. Settled claims have not exceeded commercial coverage in any of the past three
fiscal years. The estimated liability does not include any allocated or unallocated claims adjustment
expense.
All funds of the City participate in both programs and make payments to the Health Insurance Reserve
Fund and the Workers’ Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior- and current-year claims. The claims liability of $479,770 in the Health Insurance Reserve
Fund and $907,610 in the Workers’ Compensation Reserve Fund is based on the requirements of
Governmental Accounting Standards Board Statement No. 10, which requires that a liability for claims be
reported if information prior to the issuance of the financial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the
fiscal years ended June 30, 2010 and 2009, are summarized as follows:
Health Workers’
Insurance Compensation
Reserve Fund Reserve Fund
Liabilities at June 30, 2008 $ 829,027 $ 774,612
Claims and changes in estimates during fiscal year 2009 5,428,409 867,815
Claim payments (5,443,317) (1,020,418)
Liabilities at June 30, 2009 814,119 622,009
Claims and changes in estimates during fiscal year 2010 5,599,969 998,771
Claim payments (5,934,318) (713,170)
Liabilities at June 30, 2010 $ 479,770 $ 907,610
(continued on next page) 61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
The City is a member in the Iowa Communities Assurance Pool (Pool), as allowed by Chapter 670.7 of
the Code of Iowa. The Pool is a local government risk-sharing pool whose 624 members include various
governmental entities throughout the State of Iowa. The Pool was formed in August 1986 for the purpose
of managing and funding third-party liability claims against its members. The Pool provides coverage and
protection in the following categories: general liability, automobile liability, automobile physical damage,
public officials liability, police professional liability, property, inland marine, and boiler/machinery. The
City acquires automobile physical damage coverage through the Pool. All other property, inland marine,
and boiler/machinery insurance is acquired through commercial insurance. There have been no reductions
in insurance coverage from prior years.
Each member’s annual casualty contributions to the Pool fund current operations and provide capital.
Annual operating contributions are those amounts necessary to fund, on a cash basis, the Pool’s general
and administrative expenses, claims, claims expenses, and reinsurance expenses due and payable in the
current year, plus all or any portion of any deficiency in capital. Capital contributions are made during the
first six years of membership and are maintained to equal 200 percent of the total current members’ basis
rates or to comply with the requirements of any applicable regulatory authority having jurisdiction over
the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual operating
contributions which are necessary to fund, on a cash basis, the Pool’s general and administrative expenses
and reinsurance premiums, all of which are due and payable in the current year, plus all or any portion of
any deficiency in capital. Any year-end operating surplus is transferred to capital. Deficiencies in
operations are offset by transfers from capital and, if insufficient, by the subsequent year’s member
contributions. The City has property insurance coverage in addition to the Pool.
The City’s property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City’s annual contributions to the Pool for the
year ended June 30, 2010, were $588,611.
The Pool uses reinsurance and excess risk-sharing agreements to reduce its exposure to large losses. The
Pool retains general, automobile, police professional, and public officials liability risks up to $350,000
per claim. The next $2,650,000 in claims are covered with another pool (APEEP). Claims exceeding
$3,000,000 are reinsured. Property and automobile physical damage risks are retained by the Pool up to
$150,000 each occurrence, each location, with excess coverage reinsured on an individual-member basis.
The Pool’s Iowa Risk Management Agreement with its members provides that in the event a casualty
claim or series of claims exceeds the amount of risk-sharing protection provided by the member’s risk-
sharing certificate, or in the event that a series of casualty claims exhausts total members’ equity plus any
reinsurance and any excess risk-sharing recoveries, then payment of such claims shall be the obligation of
the respective individual member. As of June 30, 2010, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool’s inception.
Members agree to continue membership in the Pool for a period of not less than one full year. After such
period, a member who has given 60 days’ prior written notice may withdraw from the Pool. Upon
withdrawal, payments for all claims and claims expenses become the sole responsibility of the
withdrawing member, regardless of whether a claim was incurred or reported prior to the member’s
withdrawal. Members withdrawing within the first six years of membership may receive a partial refund
of their capital contributions. If a member withdraws after the sixth year, the member is refunded 100
percent of its capital contributions. However, the refund is reduced by an amount equal to the annual
operating contribution which the withdrawing member would have made for the one-year period
following withdrawal.
(continued on next page) 62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 9 – COMMITMENTS AND CONTINGENT LIABILITIES
Grants
The City has received financial assistance from numerous federal and state agencies in the form of grants
and entitlements. The disbursement of funds received under these programs generally requires
compliance with terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, liabilities resulting from disallowed claims, if
any, will not have a material effect on the City's financial position as of June 30, 2010.
Litigation
The City's corporation counsel reported that as of June 30, 2010, 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.
Port of Dubuque Parking Facility and Ramp Litigation
The City is a defendant in an action brought in the Iowa District Court for Dubuque County alleging that
Dubuque entered into a contract with Kraemer Brothers, as the general contractor, for the construction of
the Port of Dubuque Parking Facility & Ramp. Portzen Construction entered into a contract with Kraemer
Brothers to supply certain plumbing work on the project. Portzen Construction is making a claim in the
amount of approximately $150,000 plus interest, attorneys' fees, and costs. Kraemer Brothers has made a
claim against the City in excess of $2 million for breach of contract. The Durrant Group, the project
engineers, has made a claim against the City for approximately $150,000. The City has made breach of
contract and negligence claims against Kraemer Brothers and the Durrant Group for an amount between
$5 million and $10 million. The City intends to vigorously defend and pursue its claims.
Environmental Protection Agency
The City of Dubuque has been notified that the United States Department of Justice has approved the
filing of a civil action on behalf of the United States Environmental Protection Agency against the City
seeking civil penalties and injunctive relief for illegal discharges of untreated sewage and into waters of
the United States. The State of Iowa will join the United States in bringing this civil action. The City has
had several meetings with representatives of the Department of Justice, Environmental Protection
Agency, and State of Iowa and is attempting to negotiate a settlement of the complaint. The City has also
undertaken several major projects to remedy the alleged violations.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2010. The City has additional commitments for signed construction contracts
of $18,382,291 as of June 30, 2010. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
Debt Guarantee
The City has guaranteed debt issued by Dubuque Initiatives and Subsidiaries related to the rehabilitation
of the Roshek Building. The guarantee is limited to $25,000,000.
(continued on next page) 63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 10 – OTHER POSTEMPLOYMENT BENEFITS (OPEB)
The City implemented GASB Statement No. 45, Accounting and Financial Reporting by Employers for
Postemployment Benefits other Than Pensions prospectively during the year ended June 30, 2009.
Plan Description - The City operates a single-employer retiree benefit plan which provides
postemployment benefits for eligible participants enrolled in the City-sponsored plans, which includes the
employees of the Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does not
issue a stand-alone financial report. The benefits are provided in the form of:
An implicit rate subsidy where pre-65 retirees receive health insurance coverage by paying a combined
retiree/active rate for the self-insured medical and prescription drug plan.
An explicit rate subsidy where the City pays the full cost of a $1,000 policy in the fully-insured life
insurance plan.
To be eligible for the health insurance coverage, retirees must be at least 55 years old, have completed 4
years of service, and be vested with either the Iowa Public Employee’s Retirement System (IPERS) or the
Municipal Fire and Police Retirement System of Iowa (MFPRSI). In addition to the health eligibility
coverage requirements, one must have belonged to a bargaining group to be eligible for life insurance
benefits. There are approximately 480 active and 30 retired members in the plan.
Funding Policy - The contribution requirements of plan members are established and may be amended by
the City. The City currently finances the retiree benefit plan on a pay-as-you-go basis.
Annual OPEB Cost and Net OPEB Obligation - The City’s annual OPEB cost is calculated based on the
annual required contribution (ARC) of the City, an amount actuarially determined in accordance with
GASB Statement No. 45. The ARC represents a level of funding that, if paid on an ongoing basis, is
projected to cover normal cost each year and amortize any unfunded actuarial liabilities over a period not
to exceed 30 years.
The following table shows the components of the City’s annual OPEB cost for the year ended June 30,
2010, the amount actually contributed to the plan, and changes in the City’s net OPEB obligation:
Annual required contribution $ 945,000
Interest on net OPEB obligation -
Adjustment to annual required contribution -
Annual OPEB cost 945,000
Net contributions received from retirees 78,583
Increase in net OPEB obligation 1,023,583
Net OPEB obligation, beginning of year 920,157
Net OPEB obligation, end of year $ 1,943,740
For calculation of the net OPEB obligation, the actuary has set the transition day as July 1, 2008. The end
of year net OPEB obligation was calculated by the actuary as the cumulative difference between the
actuarially determined funding requirements and the actual contributions for the year ended June 30,
2010.
For the year ended June 30, 2010, the City paid $167,270 for retiree claims. Plan members eligible for
benefits contributed $245,853 or 100% of the premium costs. The net resulted in retiree contributions of
$78,583.
(continued on next page) 64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
The City’s annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation as of June 30, 2010 are summarized as follows:
Percentage of Net
Annual Annual OPEB OPEB
Year Ended OPEB Cost Cost Contributed Obligation
June 30, 2010 $ 945,000 (89.9%) $ 1,943,740
June 30, 2009 $ 945,000 2.6% $ 920,157
Funded Status and Funding Progress - As of July 1, 2008, the most recent actuarial valuation date for the
period July 1, 2009 through June 30, 2010, the actuarial accrued liability was $9,117,000, with no
actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $9,117,000. The
covered payroll (annual payroll of active employees covered by the plan) was approximately $31,430,000
and the ratio of the UAAL to covered payroll was 29.0%. As of June 30, 2010, there were no trust fund
assets.
Actuarial Methods and Assumptions - Actuarial valuations of an ongoing plan involve estimates of the
value of reported amounts and assumptions about the probability of occurrence of events far into the
future. Examples include assumption about future employment, mortality, and the health care cost trend.
Actuarially determined amounts are subject to continual revision as actual results are compared with past
expectations and new estimates are made about the future. The schedule of funding progress, presented
as Required Supplementary Information in the section following the Notes to Financial Statements, will
present multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the plan as understood by the
employer and the plan members and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that point.
The actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short-term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long-term perspective of the calculations.
As of the July 1, 2008 actuarial valuation date, the projected unit credit actuarial cost method was used.
The actuarial assumptions includes a 5% discount rate based on the City’s funding policy. The projected
annual medical trend rate is 11%. The ultimate medical trend rate is 6%. The medical trend rate is
reduced 0.5% each year until reaching the 6% ultimate trend rate.
Mortality rates are from the RP2000 Group Annuity Mortality Table, applied on a gender-specific basis.
Annual retirement and termination probabilities were developed from the retirement probabilities from
the IPERS and MFPRSI Actuarial Reports as of June 30, 2007 and applying the termination factors used
in the IPERS and MFPRSI Actuarial Reports as of June 30, 2007.
Projected claim costs of the medical plan are $8,490 per year for retirees at age 60. The salary increase
rate was assumed to be 4% per year. The UAAL is being amortized as a level percentage of projected
payroll expense on an open basis over 30 years.
(continued on next page) 65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
NOTE 11 – EMPLOYEE RETIREMENT SYSTEMS
MFPRSI
The City contributes to the Municipal Fire and Police Retirement System of Iowa (Plan), which is a cost-
sharing, multiple-employer defined benefit pension plan administered by a Board of Trustees. The Plan
provides retirement, disability, and death benefits which are established by state statute to plan members
and beneficiaries. The Plan issues a publicly available financial report that includes financial statements
and required supplementary information. The report may be obtained by writing to Municipal Fire and
Police Retirement System of Iowa, 7155 Lake Drive, Suite 201, West Des Moines, Iowa, 50266.
Plan members are required to contribute 9.40% of earnable compensation and the City is required to
contribute 17.00% of earnable compensation. Contribution requirements are established by state statute.
The City’s contributions to the Plan for the years ended June 30, 2010, 2009, and 2008, were $1,966,345,
$2,077,554, and $2,632,282, respectively, which met the required minimum contribution for each year.
IPERS
The City contributes to the Iowa Public Employees Retirement System (IPERS) which is a cost-sharing
multiple-employer defined benefit pension plan administered by the State of Iowa. IPERS provides
retirement and death benefits which are established by state statute to plan members and beneficiaries.
IPERS issues a publicly available financial report that includes financial statements and required
supplementary information. The report may be obtained by writing to IPERS, P.O. Box 9117, Des
Moines, Iowa, 50306-9117.
Plan members are required to contribute 4.30% of their annual covered salary, and the City is required to
contribute 6.65% of annual covered payroll. Contribution requirements are established by state statute.
The City’s contributions to IPERS for the years ended June 30, 2010, 2009, and 2008, were $1,456,384,
$1,314,106, and $1,200,182, respectively, equal to the required contributions for each year.
NOTE 12 – LANDFILL CLOSURE AND POSTCLOSURE CARE
State and federal laws and regulations require the Dubuque Metropolitan Area Solid Waste Agency to
place a final cover on each cell of its landfill site when filled and to perform certain maintenance and
monitoring functions at the site for thirty years after closure.
Although closure and postclosure care costs will be paid only near or after the date that each cell stops
accepting waste, the Agency reports a portion of these closure and postclosure care costs as an operating
expense in each period based on landfill capacity used as of each statement of net assets date. The
$3,613,945 reported as landfill closure and postclosure care liability at June 30, 2010, represents the
cumulative amount reported to date based on the use of 100% of the estimated capacity of cells 1, 2, 3,
and 4, the use of 90% of the estimated capacity of cells 5 and 6, and the use of 70% of the estimated
capacity of cells 7 and 8. The Agency will recognize the remaining estimated cost of closure and
postclosure care of $536,855 as the remaining capacity is filled.
(continued on next page) 66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
These amounts are based on what it would cost to perform all closure and postclosure care in 2010. The
Agency expects to close cells 5 and 6 in 2011, and cells 7 and 8 in 2014. The Agency is making plans to
construct a second generation of cells to extend the life of the landfill to 2058. Actual cost may be higher
due to inflation, changes in technology, or changes in regulations.
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2010, funds have been restricted for closure and postclosure
costs in the amount of $3,737,248.
NOTE 13 – LEASES WHERE CITY IS LESSOR
The City of Dubuque leases riverfront property, airport property (hangars and terminal space), farm land,
parking areas, space for antennas on top of water towers, and concession areas under operating leases.
The most significant lease is the lease of the greyhound racing and gambling facility and related parking
area to the Dubuque Racing Association (DRA). The City’s cost of the leased DRA assets total
$10,144,771. The carrying amount of the assets at June 30, 2010 is $7,296,311, with $142,423 of
depreciation expense during the year ended June 30, 2009. The DRA lease amount is based on the
association’s gross gambling receipts. During the year ended June 30, 2010, the DRA lease generated
$6,768,257 in lease revenue.
NOTE 14 – SUBSEQUENT EVENTS
On August 30, 2010, the City authorized $4,470,000 General Obligation Bonds, Series 2010A. The
bonds are being issued to provide funds to pay costs of improvements and extension to the municipal
sanitary sewer and storm water drainage systems; equipping the sanitation and road departments;
improving the City airport grounds and facilities; the acquisition of land and other costs associated with
the Bee Branch storm water project; rehabilitation and improvement of City parks; construction,
reconstruction and repair of sidewalks; improvement and installation of street lighting fixtures,
connections and facilities; street improvements, including installation of fiber optic conduit; and to
current refund $690,000 of the outstanding General Obligation Bonds, Series 2002B, dated June 1, 2002.
The Bonds are general obligations of the City for which the City pledged its power to levy direct ad
valorem taxes to the repayment of the Bonds. The interest rate on the bonds range from 2% to 4%, with a
maturity date of June 1, 2030. The funds to repay the bonds will be generated from fees and other
available revenue sources.
On August 30, 2010, the City authorized $2,675,000 General Obligation Urban Renewal Bonds, Series
2010B. The bonds are being issued to provide funds to pay costs of aiding in the planning, undertaking
and carrying out of urban renewal project activities under the authority of Chapter 403 of the Code of
Iowa and the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal
Area, including those costs associated with the construction of parking improvements and landscape
projects within the Greater Downtown Urban Renewal Area, and the funding of grants, loans and other
financial assistance to private developers to assist in rehabilitation of existing buildings and construction
of housing development projects throughout the Greater Downtown Urban Renewal Area. The Bonds are
general obligations of the City for which the City pledged its power to levy direct ad valorem taxes to the
repayment of the Bonds. The interest rate on the bonds range from 1% to 5.35%, with a maturity date of
June 1, 2030. The funds to repay the bonds will be generated from tax increment revenues of the Greater
Downtown Urban Renewal Area.
(continued on next page) 67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
On August 30, 2010, the City authorized $2,825,000 General Obligation Urban Renewal Bonds, Series
2010C. The bonds are being issued to provide funds to pay costs of aiding in the planning, undertaking
and carrying out of urban renewal project activities under the authority of Chapter 403 of the Code of
Iowa and the Amended and Restated Urban Renewal Plan for the Greater Downtown Urban Renewal
Area, including those costs associated with the construction of parking improvements and landscape
projects within the Greater Downtown Urban Renewal Area, and the funding of grants, loans and other
financial assistance to private developers to assist in rehabilitation of existing buildings and construction
of housing development projects throughout the Greater Downtown Urban Renewal Area. The Bonds are
general obligations of the City for which the City pledged its power to levy direct ad valorem taxes to the
repayment of the Bonds. The interest rate on the bonds range from 2% to 3.92%, with a maturity date of
June 1, 2030. The funds to repay the bonds will be generated from tax increment revenues of the Greater
Downtown Urban Renewal Area.
On September 21, 2010, the City authorized $5,700,000 Water Revenue Bonds, Series 2010D. The
Bonds are being issued to provide funds to pay costs of constructing and equipping improvements and
extensions to the municipal water system. The Bonds are not general obligations of the City, but are
payable solely from net revenues of the Municipal Water System. The interest rate on the bonds range
from 2% to 4%, with a maturity date of June 1, 2030. The funds to repay the bonds will be generated
from water utility fees.
On August 18, 2010, the City authorized $64,885,000 Sewer Revenue Capital Loan Note from the State
of Iowa Revolving Fund Loan/Iowa Pollution Control Works Financing Program, Series 2010E. The
loan funds are being issued to provide funds to pay costs of acquisition, construction, reconstruction,
extending, remodeling, improving, repairing and equipping all or part of the Municipal Sewer System,
including those costs associated with the Water Pollution Control Plant Modification Project. The plant
study and planning and design loan for this project were rolled into this State of Iowa Revolving Fund
Loan. Along with this note, a Tax Exemption Certificate was also approved. The interest rate on the note
is fixed at 3% for 29 years with a .25% annual administrative fee associated with the borrowing. There is
also a one-time 1% loan origination fee for the borrowing. There are no principal payments required
during the three year construction project with principal repayments required over 26 years after
construction is complete. The City has drawn $3,138,693 through November 2010 against this note. The
funds to repay the notes will be generated from sewer utility fees.
On September 7, 2010, the City authorized $2,850,000 General Obligation Capital Loan Notes, Series
th
2010F. The Notes were issued to provide funds to pay costs of constructing the Sycamore Street and 16
Street bridge improvements being undertaken as part of the Lower Bee Branch Creek Restoration Project.
Although the City is selling General Obligation Capital Loan Notes to support the project, repayment of
the debt will be generated from Storm Water Utility Fees. Along with this note, a Tax Exemption
Certificate was also approved. The interest rate on the notes are fixed at 1.49%. The short-term
borrowing (up to three years) for the loan is callable at anytime. The next time the City does a bond
issuance this debt can be converted to long-term payment. Repayment of the debt will be generated from
stormwater utility fees.
(continued on next page) 68
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2010
On October 18, 2010, the City authorized $7,850,000 Storm Water Utility Revenue Capital Loan Notes,
Series 2010G. The Notes were issued to provide funds to pay costs of constructing storm water drainage
projects and improvements, including those costs associated with the Lower Bee Branch Creek
Restoration Project and refinancing a portion of the $1,889,521 General Obligation Capital Loan Notes
Anticipation Project Notes, Series 2006 issued in respect to such costs. Along with this note, a Tax
Exemption Certificate was also approved. The interest rate on the note is fixed at 3% for 20 years with a
.25% annual administrative fee associated with the borrowing. There is also a one-time 1% loan
origination fee for the borrowing. The City plans to extend the repayment schedule to 30 years due to the
longer lives of assets acquired with financing. This funding was acquired through the State Revolving
Loan Fund and reflects a reduction from the public hearing amount due to the I-Jobs II grant award
received by the City. The City has drawn $2,176,617 through November 2010 against this note.
Repayment of the debt will be generated from stormwater utility fees.
On October 26, 2010, the City authorized Urban Renewal Tax Increment Revenue Notes, not to exceed
$350,000, for part of financing of 44 Main, LLC. The interest rate on the notes is 6%, with a maturity
date of June 30, 2027. Repayment of the debt will be generated from Tax Increment Financing revenues.
In October 2010, during the initial stages of the City's Water Pollution Control Plant Renovation Project,
a small amount of mercury was spilled from the bearing on a trickling filter while the bearing was being
removed to abate the mercury. The spill requires cleaning the trickling filter and its contents by a process
approved by the EPA and the IDNR. The cost of the clean-up is estimated to be $1.3 million. The City is
working with the general contractor to remediate the mercury spill. Liability for the costs of the spill has
not yet been determined.
NOTE 15 – NEW GOVERNMENTAL ACCOUNTING STANDARDS BOARD (GASB)
STANDARDS
GASB has issued one statement not yet implemented by the City that will affect the City’s financial
statements, as follows:
Statement No. 54, Fund Balance Reporting and Governmental Fund Type Definitions, issued February
2009, will be effective for the fiscal year ending June 30, 2011. This statement establishes new standards
for fund balance classifications based primarily on the extent to which a government is bound to observe
constraints imposed upon the use of the resources reported in governmental funds.
The City’s management has not yet determined the effect this statement will have on the City’s financial
statements.
69
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CITY OF DUBUQUE, IOWA
SCHEDULE OF RECEIPTS, EXPENDITURES, AND CHANGES IN BALANCES –
BUDGET AND ACTUAL (BUDGETARY BASIS)
GOVERNMENTAL FUNDS AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Final to
Budgeted AmountsActual
ActualOriginalFinalVariance
RECEIPTS
Property tax18,346,634$ 18,331,912$ 18,331,912$ 14,722$
Tax increment financing5,556,740 6,610,851 6,610,851 (1,054,111)
Other City tax11,239,427 13,913,509 13,913,509 (2,674,082)
Licenses and permits2,622,986 1,336,745 1,215,110 1,407,876
Use of money and property12,088,721 12,833,420 12,928,048 (839,327)
Intergovernmental28,716,864 32,378,001 58,417,378 (29,700,514)
Charges for fees and service20,146,815 27,378,276 27,422,276 (7,275,461)
Special assessments478,348 278,000 1,341,557 (863,209)
Miscellaneous10,615,175 6,350,736 9,929,350 685,825
Total Receipts 119,411,450109,811,710 150,109,991 (40,298,281)
EXPENDITURES
Public safety21,687,877 21,766,430 22,793,571 1,105,694
Public works11,235,463 11,593,287 11,862,353 626,890
Health and social services815,638 847,063 975,901 160,263
Culture and recreation8,820,689 8,955,550 9,134,083 313,394
Community and economic development13,012,259 11,584,447 12,212,363 (799,896)
General government6,698,588 6,547,820 6,956,515 257,927
Debt service5,026,061 5,970,043 5,970,043 943,982
Capital projects49,182,470 30,619,440 75,493,833 26,311,363
Business-type activities32,633,929 70,940,795 85,303,375 52,669,446
Total Expenditures149,112,974 168,824,875 230,702,037 81,589,063
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES(39,301,264) (49,413,425) (80,592,046) 41,290,782
OTHER FINANCING SOURCES, NET34,078,647 44,244,464 49,964,008 (15,885,361)
EXCESS (DEFICIENCY) OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES(5,222,617) (5,168,961) (30,628,038) 25,405,421
BALANCE, BEGINNING OF YEAR52,520,704 52,520,704 52,520,704 -
BALANCE, ENDING OF YEAR47,298,087$ 47,351,743$ 21,892,666$ 25,405,421$
70
CITY OF DUBUQUE, IOWA
NOTES TO REQUIRED SUPPLEMENTARY INFORMATION – BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2010
The budgetary comparison is presented as Required Supplementary Information in accordance with
Governmental Accounting Standards Board Statement No. 41 for governments with significant budgetary
perspective differences resulting from not being able to present budgetary comparisons for the General
Fund and each major Special Revenue Fund.
The Code of Iowa requires the adoption of an annual budget by the City Council on or before March 15 of
each year which becomes effective July 1 and constitutes the appropriation for each function specified
therein until amended. The legal level of control (the level on which expenditures may not legally exceed
appropriations) is the function level for the City as a whole, rather than at the fund or fund type level. The
internal service fund or agency fund activity is not included in the adopted budget.
The City’s budget is prepared on the cash basis of accounting with an adjustment for accrued payroll
following required public notice and hearings. After the initial annual budget is adopted, it may be
amended for specified purposes. Budget amendments must be prepared and adopted in the same manner
as the original budget. Management is not authorized to amend the budget or to make budgetary transfers
between functions without the approval of the City Council. Management may make budgeting transfers
between funds as long as the transfers are within the same function. The City has adopted a policy relative
to budgetary control and amendment which provides for control at the line-item level and review of the
current year’s budget at the time the next year’s budget is prepared. This usually results in amending the
appropriations of all functions to adjust to current conditions. Supplemental appropriations are only
provided when unanticipated revenues or budget surpluses become available. Appropriations as adopted
lapse at the end of the fiscal year.
The budget for the fiscal year ended June 30, 2010, was amended two times during the year to allow the
City to increase function expenditures by $61,877,162, primarily for the carry-forward of unfinished
capital improvement projects and expenditure of additional grants for capital improvements.
During the year ended June 30, 2010, disbursements in the community and economic development
function exceeded the amount budgeted.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Modified Governmental Enterprise
Accrual/ Funds Funds
Budgetary Accrual Accrual Modified
Basis Adjustments Basis Accrual Basis Accrual Basis Total
Receipts/revenues $ 109,811,710 $ 1,190,605 $ 111,002,315 $ 87,288,520 $ 23,713,795 $ 111,002,315
Expenditures/expenses 149,112,974 (25,605,568) 123,507,406 98,606,222 24,901,184 123,507,406
Deficiency of receipts/
revenues under
expenditures/expenses (39,301,264) 26,796,173 (12,505,091) (11,317,702) (1,187,389) (12,505,091)
Other financing sources,
net 34,078,647 (27,621,958) 6,456,689 2,218,752 4,237,937 6,456,689
Net (5,222,617) (825,785) (6,048,402) (9,098,950) 3,050,548 (6,048,402)
Balance, beginning 52,520,704 131,425,205 183,945,909 50,381,341 133,564,568 183,945,909
Balance, ending $ 47,298,087 $ 130,599,420 $ 177,897,507 $ 41,282,391 $ 136,615,116 $ 177,897,507
71
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN
FOR THE YEAR ENDED JUNE 30, 2010
Actuarial UAAL as a
Actuarial Accrued Unfunded Percentage
Year Actuarial Value of Liability AAL Funded Covered of Covered
Ended Valuation Assets (AAL) (UAAL) Ratio Payroll Payroll
June 30 Date (a) (b) (b-a) (a/b) (c) (b-a/c)
2009 07/01/08 $ - $ 9,117,000 $ 9,117,000 0.0% $ 30,012,086 30.4%
2010 07/01/08 $ - $ 9,117,000 $ 9,117,000 0.0% $ 31,430,000 29.0%
72
NONMAJOR GOVERNMENTAL FUNDS
SPECIAL REVENUE FUNDS
Special revenue funds are used to account for specific revenues that are legally restricted to expenditure
for particular purposes.
Road Use Tax Fund –
This fund is used to account for state revenues allocated to the City for
maintenance and improvement of City streets.
Section VIII Housing Fund –
This fund is used to account for the operations of federal Section VIII
existing, voucher, and moderate rehabilitation projects.
Tort Liability Fund –
This fund is used to collect a special property tax levy which is then
transferred to the General Fund. The General Fund accounts for the administration and payment of
damage claims against the City.
Special Assessments Fund –
This fund is used to account for the financing of public improvements
that are deemed to benefit primarily the properties against which special assessments are levied and to
accumulate monies for the payment of principal and interest on the outstanding long-term debt
service.
Tax Increment Financing Fund
– This fund is used to account for the receipt of property taxes, for
the payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts’ long-term debt service.
Cable TV Fund
– This fund is used to account for the monies and related costs as set forth in the
cable franchise agreement between the City of Dubuque and the cable franchisee.
Library Expendable Gifts Trust
– This fund is used to account for contributions given to the library
to be spent for specific purposes.
IFA Housing Trust
– This fund is used to account for funds received under the Iowa Finance
Authority State Housing Trust Fund Program.
DEBT SERVICE FUND
The debt service fund is used to account for the accumulation of resources and payment of general
obligation bond principal and interest from governmental resources and special assessment bond principal
and interest from special assessment levies when the government is obligated in some manner for the
payment.
NONMAJOR GOVERNMENTAL FUNDS
CAPITAL PROJECTS FUNDS
Capital projects funds are used to account for the acquisition and construction of major capital facilities
other than those financed by proprietary funds and trust funds.
Airport Construction Fund –
This fund is used to account for the resources and costs related to
airport capital improvements.
Sales Tax Construction Fund –
This fund is used to account for the resources and costs related to
capital improvements financed through the local option sales tax.
PERMANENT FUNDS
Permanent funds are used to report resources that are legally restricted to the extent that only earnings, not
principal, may be used for purposes that support the reporting City’s programs.
Ella Lyons Peony Trail Trust Fund
– This fund is used for dividends and maintenance cost related
to the City Peony Trail, per trust agreement.
Library Gifts Trust Fund
– This fund is used to account for testamentary gifts to the City library.
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
RoadSection VIIITort
Use TaxHousingLiability
ASSETS
Cash and pooled cash investments570,025$ 320,179$ -$
Receivables
Property tax
Delinquent- - 9,449
Succeeding year- - 406,612
Accounts and other- 18,916 -
Special assessments- - -
Accrued interest- 794 -
Notes- 1,095 -
Intergovernmental319,642 5,011 -
Inventory613,943 - -
Restricted cash and pooled cash investments- 27,422 -
Total Assets1,503,610$ 373,417$ 416,061$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable162,867$ 37,279$ -$
Accrued payroll69,324 21,411 -
Intergovernmental payable- 14,081 -
Deferred revenue
Succeeding year property tax- - 406,612
Other- - 272
Total Liabilities232,191 72,771 406,884
FUND BALANCES
Reserved for/by
Encumbrances210,624 3,075 -
Long-term notes receivable- 383 -
Inventory613,943 - -
Bond ordinance- - -
Debt service- - -
Franchise agreement- - -
Endowments- - -
Unreserved, undesignated reported in
Special revenue funds446,852 297,188 9,177
Capital projects funds- - -
Permanent funds- - -
Total Fund Balances1,271,419 300,646 9,177
Total Liabilities and Fund Balances1,503,610$ 373,417$ 416,061$
EXHIBIT A-1
Special Revenue
TaxLibraryIFA
SpecialIncrementExpendableHousingDebt
AssessmentsFinancingCable TVGifts TrustTrustService
$ 605,187-$ 372,782$ 210,299$ 150,000$ 73,713$
-- - - - 1,777
-- - - - 118,185
-- 16,287 - - -
-590,098 - - - -
38,264- 999 564 - 198
-- - - - -
-- - - - -
-- - - - -
- 2,351,738 1,332 - - -
$ 590,098 2,995,189$ 391,400$ 210,863$ 150,000$ 193,873$
$ 67,892-$ 1,914$ 4,117$ -$ -$
-- 16,177 - - -
-- - - - -
-- - - - 118,185
547,880 - - - - -
547,880 67,892 18,091 4,117 - 118,185
-- 998 11,463 - -
-- - - - -
-- - - - -
2,351,738- - - - -
-- - - - 75,688
-- 1,332 - 150,000 -
-- - - - -
575,55942,218 370,979 195,283 - -
-- - - - -
- - - - - -
42,218 2,927,297 373,309 206,746 150,000 75,688
$ 590,098 2,995,189$ 391,400$ 210,863$ 150,000$ 193,873$
(continued)
73
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2010
Capital Projects
AirportSales Tax
ConstructionConstruction
ASSETS
Cash and pooled cash investments734,940$ 1,684,325$
Receivables
Property tax
Delinquent --
Succeeding year- -
Accounts and other599,975 -
Special assessments- -
Accrued interest2,101 4,515
Notes --
Intergovernmental263,340 259,345
Inventory --
Restricted cash and pooled cash investments- -
Total Assets1,600,356$ 1,948,185$
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable67,226$ 93,649$
Accrued payroll- -
Intergovernmental payable- -
Deferred revenue
Succeeding year property tax- -
Other 660,458 -
Total Liabilities727,684 93,649
FUND BALANCES
Reserved for/by
Encumbrances449,593 357,895
Long-term notes receivable- -
Inventory --
Bond ordinance- -
Debt service --
Franchise/housing agreement- -
Endowments --
Unreserved, undesignated reported in
Special revenue funds- -
Capital projects funds423,079 1,496,641
Permanent funds- -
Total Fund Balances872,672 1,854,536
Total Liabilities and Fund Balances1,600,356$ 1,948,185$
EXHIBIT A-1
(continued)
Permanent FundsTotal
Ella LyonsLibraryNonmajor
Peony TrailGiftsGovernmental
TrustTrustFunds
$ --$ 4,721,450$
-- 11,226
-- 524,797
-- 635,178
-- 590,098
3884 47,557
-- 1,095
-- 847,338
-- 613,943
88,398 14,165 2,483,055
$ 88,482 14,203$ 10,475,737$
$ --$ 434,944$
-- 106,912
-- 14,081
-- 524,797
- - 1,208,610
- - 2,289,344
-- 1,033,648
-- 383
-- 613,943
-- 2,351,738
-- 75,688
-- 151,332
12,00057,412 69,412
-- 1,937,256
-- 1,919,720
31,070 2,203 33,273
88,482 14,203 8,186,393
$ 88,482 14,203$ 10,475,737$
74
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
RoadSection VIII
Use TaxHousing
REVENUES
Taxes$ --$
Special assessments- -
Intergovernmental5,034,153 5,016,500
Charges for services- -
Investment earnings351 5,061
Contributions --
42,781
Miscellaneous50,862
Total Revenues5,085,366 5,064,342
EXPENDITURES
Governmental activities
Current
Public safety- 86,247
Public works5,934,720 -
Health and social services- -
Culture and recreation- -
Community and economic development- 5,424,930
General government5,176 -
Debt service --
Capital projects- -
Total Expenditures5,939,896 5,511,177
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(854,530) (446,835)
OTHER FINANCING SOURCES (USES)
Issuance of debt100,000 -
Discount on bonds(1,006) -
Premium on bonds- -
Issuance of refunding bonds- -
Refunded bonds redeemed - -
Transfers in415,469 -
Transfers out(497,072) -
Total Other Financing Sources (Uses)17,391 -
NET CHANGE IN FUND BALANCES(837,139) (446,835)
FUND BALANCES, BEGINNING2,108,558 747,481
FUND BALANCES, ENDING1,271,419$ 300,646$
EXHIBIT A-2
Special Revenue
TaxLibraryIFA
TortSpecialIncrementExpendableHousingDebt
LiabilityAssessmentsFinancingCable TVGifts TrustTrustService
$ -420,322$ 5,556,738$ -$ -$ -$ 85,251$
318,178- - - - - -
-- 16,059 - - - 15,463
-- - - - - -
35,426- 343,746 17,424 4,641 - 551
-- - - 180,062 - -
10,728- 280 641,931 - - -
364,332420,322 5,916,823 659,355 184,703 - 101,265
-- - 48,540 - - -
-- - - - - -
-- - 26,122 - - -
-- - - 50,529 - -
-- 2,280,961 - - 183,817 -
-- - 570,657 - - 34,796
-- 3,959,253 - - - 1,485,304
-- - - - - -
-- 6,240,214 645,319 50,529 183,817 1,520,100
364,332420,322 (323,391) 14,036 134,174 (183,817) (1,418,835)
-- 647,176 - - - -
-- - - - - -
-- - - - - 554,796
-- - - - - 8,885,000
-- - - - - (9,405,000)
-- - - - 333,817 1,456,572
(500,334)(412,762) (2,351,812) - (41,027) - -
(500,334)(412,762) (1,704,636) - (41,027) 333,817 1,491,368
(136,002)7,560 (2,028,027) 14,036 93,147 150,000 72,533
178,2201,617 4,955,324 359,273 113,599 - 3,155
$ 42,2189,177$ 2,927,297$ 373,309$ 206,746$ 150,000$ 75,688$
(continued)
75
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND
BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Capital Projects
AirportSales Tax
ConstructionConstruction
REVENUES
Taxes$ 1,622,494-$
Special assessments- -
Intergovernmental711,563 -
Charges for services144,334 -
Investment earnings21,081 49,205
Contributions- -
-
Miscellaneous-
Total Revenues876,978 1,671,699
EXPENDITURES
Governmental activities
Current
Public safety- -
Public works- -
Health and social services- -
Culture and recreation- -
Community and economic development- -
General government- -
Debt service --
Capital projects970,639 1,457,377
Total Expenditures970,639 1,457,377
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES(93,661) 214,322
OTHER FINANCING SOURCES (USES)
Issuance of debt230,000 -
Discount on bonds(2,313) -
Premium on bonds- -
Issuance of refunding bonds- -
Refunded bonds redeemed - -
Transfers in65,519 56,919
Transfers out (336,030)-
Total Other Financing Sources (Uses)293,206 (279,111)
NET CHANGE IN FUND BALANCES199,545 (64,789)
FUND BALANCES, BEGINNING673,127 1,919,325
FUND BALANCES, ENDING872,672$ 1,854,536$
EXHIBIT A-2
(continued)
Permanent FundsTotal
Ella LyonsLibraryNonmajor
Peony TrailGiftsGovernmental
TrustTrustFunds
$ --$ 7,684,805$
-- 318,178
-- 10,793,738
-- 144,334
4153,849 481,750
-- 180,062
-- 746,582
4153,849 20,349,449
-- 134,787
-- 5,934,720
-- 26,122
6,101440 57,070
-- 7,889,708
-- 610,629
-- 5,444,557
-- 2,428,016
6,101440 22,525,609
(5,686)3,409 (2,176,160)
-- 977,176
-- (3,319)
-- 554,796
-- 8,885,000
-- (9,405,000)
-- 2,328,296
-- (4,139,037)
-- (802,088)
(5,686)3,409 (2,978,248)
19,88985,073 11,164,641
$ 14,20388,482$ 8,186,393$
76
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises -- where the intent of the City Council is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges; or where the City Council has decided that periodic determination of net income is appropriate
for accountability purposes.
Refuse Collection Fund
– This fund is used to account for the operations of the City's refuse
collection services.
Transit System Fund
– This fund is used to account for the operations of the City's bus and other
transit services.
CITY OF DUBUQUE, IOWA
EXHIBIT B-1
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2010
Total Other
RefuseTransitEnterprise
CollectionSystemFunds
ASSETS
CURRENT ASSETS
Cash and pooled cash investments956,631$ -$ 956,631$
Receivables
Accounts337,714 2,053 339,767
Accrued interest2,565 - 2,565
Intergovernmental- 994,703 994,703
Inventories- 25,435 25,435
Prepaid items- 1,059 1,059
Total Current Assets1,296,910 1,023,250 2,320,160
NONCURRENT ASSETS
Capital assets
Land- 36,000 36,000
Buildings- 1,887,564 1,887,564
Machinery and equipment1,660,989 3,658,334 5,319,323
Accumulated depreciation(1,306,309) (3,896,508) (5,202,817)
Net Capital Assets354,680 1,685,390 2,040,070
Total Assets1,651,590 2,708,640 4,360,230
LIABILITIES
CURRENT LIABILITIES
Accounts payable9,702 32,197 41,899
Accrued payroll53,492 55,101 108,593
Accrued compensated absences135,855 8,697 144,552
Due to other funds- 6,465 6,465
Total Current Liabilities199,049 102,460 301,509
NONCURRENT LIABILITIES
Net OPEB liability82,880 23,680 106,560
Total Liabilities281,929 126,140 408,069
NET ASSETS
Invested in capital assets, net of related debt354,680 1,685,390 2,040,070
Unrestricted1,014,981 897,110 1,912,091
Total Net Assets1,369,661$ 2,582,500$ 3,952,161$
77
CITY OF DUBUQUE, IOWA
EXHIBIT B-2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Total Other
RefuseTransitEnterprise
CollectioSysteFunds
nm
OPERATING REVENUES
Charges for sales and services2,891,217$ 182,258$ 3,073,475$
Othe 1,800 91,175 92,975
r
Total Operating Revenues2,893,017 273,433 3,166,450
OPERATING EXPENSES
Employee expense1,775,037 1,244,662 3,019,699
Utilities13,177 56,146 69,323
Repairs and maintenance251,627 552,835 804,462
Supplies and services561,283 622,953 1,184,236
Insurance28,376 46,750 75,126
Depreciation74,387 308,720 383,107
Total Operating Expenses2,703,887 2,832,0665,535,953
OPERATING INCOME (LOSS)189,130 (2,558,633)(2,369,503)
NONOPERATING REVENUES
Intergovernmental- 1,180,359 1,180,359
Investment earnings24,805 - 24,805
Gain on disposal of assets1,899 - 1,899
Net Nonoperating Revenues26,704 1,180,3591,207,063
INCOME (LOSS) BEFORE TRANSFERS215,834 (1,378,274) (1,162,440)
TRANSFERS IN- 1,345,014 1,345,014
CHANGE IN NET ASSETS215,834 (33,260) 182,574
NET ASSETS, BEGINNING1,153,827 2,615,7603,769,587
NET ASSETS, ENDING1,369,661$$ 2,582,500$3,952,161
78
CITY OF DUBUQUE, IOWA
EXHIBIT B-3
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Total Other
RefuseTransitEnterprise
CollectionSystemFunds
CASH FLOWS FROM OPERATING ACTIVITIES
$ 193,3872,883,049$ 3,076,436$
Cash received from customers
(1,297,560)(851,141) (2,148,701)
Cash payments to suppliers for goods and services
(1,224,992)(1,730,922) (2,955,914)
Cash payments to employees for services
91,1751,800 92,975
Other operating receipts
NET CASH PROVIDED BY (USED FOR) OPERATING
(2,237,990)302,786 (1,935,204)
ACTIVITIES
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
1,345,014- 1,345,014
Transfers from other funds
(165,988)- (165,988)
Payment of interfund balances
1,110,950- 1,110,950
Intergovernmental grant proceeds
NET CASH PROVIDED BY NONCAPITAL
2,289,976- 2,289,976
FINANCING ACTIVITIES
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
-1,899 1,899
Proceeds from sale of capital assets
(243,054) (51,986) (295,040)
Acquisition and construction of capital assets
NET CASH USED BY CAPITAL AND RELATED
(241,155) (51,986) (293,141)
FINANCING ACTIVITIES
CASH FLOWS FROM INVESTING ACTIVITIES
-26,170 26,170
Interest received
-87,801 87,801
NET INCREASE IN CASH AND CASH EQUIVALENTS
-868,830 868,830
CASH AND CASH EQUIVALENTS, BEGINNING
$ -956,631$ 956,631$
CASH AND CASH EQUIVALENTS, ENDING
(continued)
79
CITY OF DUBUQUE, IOWA
EXHIBIT B-3
COMBINING STATEMENT OF CASH FLOWS (continued)
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
Business-type Activities - Enterprise Funds
Total Other
RefuseTransitEnterprise
CollectionSystemFunds
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
$ (2,558,633)189,130$ (2,369,503)$
Operating income (loss)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
308,72074,387 383,107
Depreciation
Change in assets and liabilities
11,129(8,168) 2,961
(Increase) decrease in receivables
(2,940)- (2,940)
Increase in inventories
(15,936)3,322 (12,614)
Increase (decrease) in accounts payable
8,0163,327 11,343
Increase in accrued liabilities
11,65440,788 52,442
Increase in net OPEB liability
320,643113,656 434,299
Total Adjustments
NET CASH PROVIDED BY (USED FOR) OPERATING
$ (2,237,990)302,786$ (1,935,204)$
ACTIVITIES
80
INTERNAL SERVICE FUNDS
Internal service funds are used to account for the financing of goods or services provided by one
department to other departments of the government and to other government units, on a cost-
reimbursement basis.
General Service Fund -
This fund is used to account for engineering, street, and general services
supplied to other departments.
Garage Service Fund -
This fund is used to account for maintenance and repair services for the
City's automotive equipment.
Stores/Printing Fund -
This fund is used to account for printing, supplies, and other services
provided to other departments.
Health Insurance Reserve Fund -
This fund is used to account for health insurance costs.
Workers' Compensation Reserve Fund -
This fund is used to account for workers' compensation
costs.
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2010
GeneralGarageStores/
ServiceServicePrinting
ASSETS
CURRENT ASSETS
Cash and pooled cash investments-$ 233,687$ 3,672$
Receivables
Accounts- - -
Accrued interest- - -
Intergovernmental- 4,560 -
Inventories- 46,067 4,808
Prepaid items- 1,589 -
Total Current Assets- 285,903 8,480
NONCURRENT ASSETS
Capital assets
Machinery and equipment- 101,738 -
Accumulated depreciation- (52,456) -
Net Capital Assets- 49,282 -
Total Assets- 335,185 8,480
LIABILITIES
CURRENT LIABILITIES
Accounts payable- 16,376 -
Accrued payroll17,070 30,926 -
Due to other funds1,489 - -
Total Liabilities18,559 47,302 -
NET ASSETS
Invested in capital assets, net of related debt- 49,282 -
Unrestricted(18,559) 238,601 8,480
Total Net Assets (Deficit)(18,559)$ 287,883$ 8,480$
EXHIBIT C-1
HealthWorkers'
InsuranceCompensation
ReserveReserveTotal
$ 53,6832,186,108$ 2,477,150$
-1,583 1,583
1445,861 6,005
-- 4,560
-- 50,875
- - 1,589
2,193,552 53,827 2,541,762
-- 101,738
- - (52,456)
- - 49,282
2,193,552 53,827 2,591,044
907,610479,770 1,403,756
-- 47,996
- - 1,489
479,770 907,610 1,453,241
-- 49,282
1,713,782 (853,783) 1,088,521
$ 1,713,782 (853,783)$ 1,137,803$
81
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES
IN FUND NET ASSETS (DEFICIT)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
GeneralGarageStores/
ServiceServicePrinting
OPERATING REVENUES
Charges for sales and services1,475,561$ 1,647,503$ 142,527$
Other- 260 -
Total Operating Revenues1,475,561 1,647,763 142,527
OPERATING EXPENSES
Employee expense1,457,316 805,116 -
Utilities- 20,652 -
Repairs and maintenance- 20,214 -
Supplies and services6,312 834,547 128,991
Insurance12,418 16,178 -
Depreciation- 8,680 -
Total Operating Expenses1,476,046 1,705,387 128,991
OPERATING INCOME (LOSS)(485) (57,624) 13,536
NONOPERATING REVENUES
Investment earnings- - -
Gain on disposal of assets- 3,662 -
Total Nonoperating Revenues- 3,662 -
CHANGE IN NET ASSETS(485) (53,962) 13,536
NET ASSETS (DEFICIT), BEGINNING(18,074) 341,845 (5,056)
NET ASSETS (DEFICIT), ENDING(18,559)$ 287,883$ 8,480$
EXHIBIT C-2
HealthWorkers'
InsuranceCompensation
ReserveReserveTotal
$ 616,1555,016,950$ 8,898,696$
129,899 4,270 134,429
5,146,849 620,425 9,033,125
-- 2,262,432
-- 20,652
-- 20,214
1,033,3715,765,488 7,768,709
26,320644,319 699,235
- - 8,680
6,409,807 1,059,691 10,779,922
(439,266)(1,262,958) (1,746,797)
4,71365,768 70,481
- - 3,662
65,768 4,713 74,143
(434,553)(1,197,190) (1,672,654)
2,910,972 (419,230) 2,810,457
$ 1,713,782 (853,783)$ 1,137,803$
82
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
GeneralGarageStores/
ServiceServicePrinting
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers1,475,561$ 1,647,503$ 142,527$
Cash payments to suppliers for goods and services(18,730) (939,385) (137,200)
Cash payments to employees for services(1,458,004) (799,793) -
Other operating receipts- 260 -
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES(1,173) (91,415) 5,327
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Proceeds from interfund balances1,173 - -
Payment of interfund balances- - (1,655)
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES1,173 - (1,655)
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets- 3,662 -
Acquisition and construction of capital assets- (13,548) -
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES- (9,886) -
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received- - -
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS- (101,301) 3,672
CASH AND CASH EQUIVALENTS, BEGINNING- 334,988 -
CASH AND CASH EQUIVALENTS, ENDING-$ 233,687$ 3,672$
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)(485)$ (57,624)$ 13,536$
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation- 8,680 -
Change in assets and liabilities
Decrease (increase) in receivables- (4,560) -
Increase in inventories- (4,295) (2,904)
Increase (decrease) in accounts payable- (38,939) (5,305)
Increase (decrease) in accrued liabilities(688) 5,323 -
Total Adjustments(688) (33,791) (8,209)
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES(1,173)$ (91,415)$ 5,327$
EXHIBIT C-3
HealthWorkers'
InsuranceCompensation
ReserveReserveTotal
$ 616,1555,179,747$ 9,061,493$
(774,090)(6,744,156) (8,613,561)
-- (2,257,797)
4,270129,899 134,429
(153,665)(1,434,510) (1,675,436)
-- 1,173
-- (1,655)
-- (482)
-- 3,662
-- (13,548)
-- (9,886)
5,58374,716 80,299
(148,082)(1,359,794) (1,605,505)
201,7653,545,902 4,082,655
$ 53,6832,186,108$ 2,477,150$
$ (439,266)(1,262,958)$ (1,746,797)$
-- 8,680
-162,797 158,237
-- (7,199)
285,601(334,349) (92,992)
-- 4,635
285,601(171,552) 71,361
$ (153,665)(1,434,510)$ (1,675,436)$
83
AGENCY FUNDS
The agency fund is used to report resources held by the City in a purely custodial capacity.
Cable Equipment Fund
– This fund is used to account for resources received under the cable
franchise agreement to support public, educational, and governmental access and internet use grants.
Dog Track Depreciation Fund –
This fund is used to account for the resources held for
improvements at the greyhound racing facility.
CITY OF DUBUQUE, IOWA
EXHIBIT D-1
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUNDS
FOR THE YEAR ENDED JUNE 30, 2010
BalanceBalance
BeginningEnd
of YearAdditionsDeductionsof Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments332,873$ 13,914$ 183,028$ 163,759$
Accounts receivable5,559 5,700 5,559 5,700
Accrued interest- 3,132 3,132 -
Total Assets338,432$ 22,746$ 191,719$ 169,459$
LIABILITIES
Accounts payable-$ 14,988$ -$ 14,988$
Due to other agency338,432 7,758 191,719 154,471
Total Liabilities338,432$ 22,746$ 191,719$ 169,459$
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments790,917$ 145,099$ -$ 936,016$
Accrued interest3,238 24,371 25,099 2,510
Total Assets794,155$ 169,470$ 25,099$ 938,526$
LIABILITIES
Due to other agency794,155$ 169,470$ 25,099$ 938,526$
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments1,123,790$ 159,013$ 183,028$ 1,099,775$
Accounts receivable5,559 5,700 5,559 5,700
Accrued interest3,238 27,503 28,231 2,510
Total Assets1,132,587$ 192,216$ 216,818$ 1,107,985$
LIABILITIES
Accounts payable-$ 14,988$ -$ 14,988$
Due to other agency1,132,587 177,228 216,818 1,092,997
Total Liabilities1,132,587$ 192,216$ 216,818$ 1,107,985$
84
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CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City’s comprehensive annual financial report presents detailed information
as a context for understanding what the information in the financial statements, note disclosures, and
required supplementary information says about the City’s overall financial health.
Contents Page
Financial Trends
These schedules contain trend information to help the reader understand how the City’s
financial performance and well-being have changed over time. 86
Revenue Capacity
These schedules contain information to help the reader assess the City’s most
significant local revenue source, the property tax. 91
Debt Capacity
These schedules present information to help the reader assess the affordability of the
City’s current levels of outstanding debt and the City’s ability to issue additional
debt in the future. 95
Demographic and Economic Information
These schedules offer demographic and economic indicators to help the reader
understand the environment within which the City’s financial activities take place
and to help make comparisons over time and with other governments. 103
Operating Information
These schedules contain service and infrastructure data to help the reader understand
how the information in the City’s financial report relates to the services the City
provides and the activities it performs. 105
Sources:
Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year. The City implemented GASB Statement 34 in 2003;
schedules presenting government-wide information include information beginning in that year.
85
CITY OF DUBUQUE, IOWA
NET ASSETS BY COMPONENT
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003200420052006
Governmental activities
Invested in capital assets, net of related debt212,767,403$ 231,863,231$ 249,881,646$ 267,762,059$
Restricted29,306,124 31,931,803 24,180,874 21,693,357
Unrestricted11,528,644 11,322,661 11,236,870 15,132,486
Total governmental activities net assets253,602,171$ 275,117,695$ 285,299,390$ 304,587,902$
Business-type activities
Invested in capital assets, net of related debt98,706,116$ 92,301,043$ 93,036,089$ 88,802,536$
Restricted553,677 554,005 554,205 554,294
Unrestricted6,308,801 10,502,939 12,854,730 13,258,072
Total business-type activities net assets105,568,594$ 103,357,987$ 106,445,024$ 102,614,902$
Primary government
Invested in capital assets, net of related debt311,473,519$ 324,164,274$ 342,917,735$ 356,564,595$
Restricted29,859,801 32,485,808 24,735,079 22,247,651
Unrestricted17,837,445 21,825,600 24,091,600 28,390,558
Total primary government net assets359,170,765$ 378,475,682$ 391,744,414$ 407,202,804$
TABLE1
2007200820092010
$ 296,143,451288,978,975$ 298,855,346$ 309,126,684$
31,970,72423,900,328 27,171,123 26,064,318
18,987,84121,921,571 (5,280,715) (11,256,312)
$ 347,102,016334,800,874$ 320,745,754$ 323,934,690$
$ 95,104,57591,483,532$ 120,473,286$ 124,805,513$
554,505554,318 770,157 129,642
11,312,80611,214,900 12,321,125 11,679,961
$ 106,971,886103,252,750$ 133,564,568$ 136,615,116$
$ 391,248,026380,462,507$ 419,328,632$ 433,932,197$
32,525,22924,454,646 27,941,280 26,193,960
30,300,64733,136,471 7,040,410 423,649
$ 454,073,902438,053,624$ 454,310,322$ 460,549,806$
86
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003200420052006
Expenses
Governmental activities:
Public safety15,817,052$ 16,605,481$ 18,636,877$ 18,892,980$
Public works14,453,558 12,847,410 17,088,983 16,390,322
Health and social services815,524 1,290,619 654,469 678,748
Culture and recreation7,367,147 7,849,114 8,474,183 9,627,505
Community and economic
development9,431,702 12,662,552 9,680,046 8,541,167
General government4,211,922 3,773,136 4,048,475 3,868,687
Interest on long-term debt1,605,326 1,248,498 1,298,367 1,460,730
56,276,81053,702,231 59,881,400 59,460,139
Total governmental activities expenses
Business-type activities:
Sewage disposal works4,655,696 5,282,016 4,656,172 5,298,353
Water utility4,145,983 4,368,738 4,232,489 4,700,483
Stormwater utility- 1,184,968 1,114,811 1,153,628
Parking facilities1,445,434 1,655,429 1,604,071 1,629,427
America's River Project414,830 1,064,701 515,570 82,617
Refuse collection2,140,807 2,238,254 2,202,800 2,463,795
Transit system2,055,248 2,257,078 2,326,908 2,555,080
18,051,18414,857,998 16,652,821 17,883,383
Total business-type activities expenses
$ 74,327,99468,560,229$ 76,534,221$ 77,343,522$
Total primary government expenses
Program Revenues
Governmental activities:
Charges for services
Public safety1,586,255$ 1,785,787$ 1,900,938$ 1,809,481$
Public works3,367,720 3,392,650 3,371,073 3,370,291
Culture and recreation2,145,435 2,282,983 2,143,246 2,218,315
Other activities764,732 873,457 945,712 895,920
Operating grants and contributions13,677,503 12,197,307 14,603,106 12,902,410
Capital grants and contributions3,447,052 5,153,258 6,919,296 6,881,573
Tota governmenta actvtes program revenues ,,75,5,,,7,77,
lliii24988692684422988331280990
Business-type activities:
Charges for services
Sewage disposal works4,300,156 4,719,491 4,552,587 5,077,491
Water utility3,975,598 4,307,238 4,224,074 4,669,340
Stormwater utility- 754,101 684,570 928,850
Parking facilities1,427,146 1,643,490 1,889,937 1,886,642
America's River Project147,695 881,089 26,061 51,373
Refuse collection1,981,105 2,157,285 2,283,677 2,397,525
Transit system201,367 319,216 389,106 341,743
Operating grants and contributions880,822 825,538 651,967 920,762
Capital grants and contributions11,938,797 11,007,676 3,030,378 2,769,657
26,615,12424,852,686 17,732,357 19,043,383
Total business-type activities program revenues
Total primary government program revenues49,841,383$ 52,300,566$ 47,615,728$ 47,121,373$
TABLE2
2007200820092010
$ 16,966,21020,326,724$ 22,038,265$ 22,067,988$
18,847,06816,505,560 19,079,688 22,121,629
800,566759,367 849,237 852,099
10,857,4099,837,299 12,640,716 11,446,084
11,961,58411,965,805 12,693,140 15,422,099
5,804,0034,940,154 6,423,908 7,963,016
2,577,4171,400,748 3,164,126 3,101,897
67,814,25765,735,657 76,889,080 82,974,812
6,141,5245,814,076 6,326,708 6,631,326
4,814,6924,780,063 6,100,491 6,093,827
1,706,7351,198,675 2,138,198 2,213,144
2,173,1101,611,447 2,147,405 4,003,776
126,699434,667 61,927 423,158
2,724,0502,496,018 2,788,665 2,703,887
2,703,9832,760,459 2,625,145 2,832,066
20,390,79319,095,405 22,188,539 24,901,184
$ 88,205,05084,831,062$ 99,077,619$ 107,875,996$
$ 2,088,7231,857,324$ 2,020,625$ 2,348,064$
4,061,8834,839,781 4,456,364 4,046,583
2,109,5712,251,562 2,279,688 2,192,886
1,382,8891,074,550 1,557,597 2,412,880
11,709,12311,641,904 12,599,967 20,830,113
8,032,60223,741,282 4,811,729 10,748,522
5,, ,,77,75,7,57,
440640329384912290429048
5,484,0795,259,432 5,904,535 5,893,730
4,875,5304,743,896 5,320,642 5,326,202
1,766,3341,227,243 2,291,249 2,282,625
2,141,6071,977,757 2,224,185 2,399,843
2,1403,099 - 7,000
2,710,5832,642,251 2,872,649 2,893,017
195,817237,088 196,260 273,433
1,209,6361,167,344 1,095,946 1,652,277
2,830,2631,670,874 3,613,321 3,800,582
21,215,98918,928,984 23,518,787 24,528,709
$ 50,600,78064,335,387$ 51,244,757$ 67,107,757$
(continued)
87
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST EIGHT FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
2003200420052006
Net (Expense)/Revenue
Governmental activities(28,713,534)$ (30,591,368)$ (29,998,029)$ (31,382,149)$
Business-type activities9,994,688 8,563,940 1,079,536 1,160,000
Total primary government net expense(18,718,846)$ (22,027,428)$ (28,918,493)$ (30,222,149)$
General Revenues and Other Changes in Net Assets
Governmental activities:
General Revenues
Property taxes18,041,049$ 18,588,367$ 19,767,492$ 19,716,620$
Local option sales tax6,492,203 7,105,183 6,963,124 7,336,124
Hotel/motel tax970,232 1,314,114 1,383,660 1,862,439
Utility franchise fees- 862,275 1,310,064 1,521,201
Gaming9,539,598 11,631,022 11,694,105 14,034,847
Unrestricted investment earnings1,749,301 497,361 1,190,337 1,081,141
Gain/(loss) on sale of capital assets(149,650) 175,231 170,642 77,627
Other1,228,232 638,681 560,789 572,602
Transfers(7,720,462) 10,956,246 (1,684,581) 5,033,974
Total governmental activities30,150,503 51,768,480 41,355,632 51,236,575
Business-type activities:
General Revenues
Property taxes506,054 - - -
Unrestricted investment earnings321,447 181,674 322,884 339,599
Gain/(loss) on sale of capital assets(168,001) 25 36 703
Transfers7,720,462 (10,956,246) 1,684,581 (5,033,974)
Total business-type activities8,379,962 (10,774,547) 2,007,501 (4,693,672)
Total primary government38,530,465$ 40,993,933$ 43,363,133$ 46,542,903$
Change in Net Assets
Governmental activities1,436,969$ 21,177,112$ 11,357,603$ 19,854,426$
Business-type activities18,374,650 (2,210,607) 3,087,037 (3,533,672)
Total primary government19,811,619$ 18,966,505$ 14,444,640$ 16,320,754$
TABLE2
(continued)
2007200820092010
$ (38,429,466)(20,329,254)$ (49,163,110)$ (40,395,764)$
(166,421) 825,196 1,330,248 (372,475)
$(20,495,675) (37,604,270)$ (47,832,862)$ (40,768,239)$
$ 22,744,56321,656,908$ 23,716,819$ 24,876,073$
8,020,8897,817,403 7,649,853 8,112,471
1,622,4551,569,743 1,611,954 1,678,806
1,516,1231,492,920 1,486,292 1,591,712
15,346,46815,556,551 9,627,391 8,209,761
2,741,4991,870,403 2,215,413 1,339,709
92,525- 407,503 -
898,241586,931 918,605 880,930
(2,252,155) (24,826,982) (3,104,762)
(7,633)
50,730,60850,543,226 22,806,848 43,584,700
-- - -
630,049796,636 433,148 294,562
11,736- 2,304 23,699
2,252,1557,633 24,826,982 3,104,762
2,893,940804,269 25,262,434 3,423,023
$ 53,624,54851,347,495$ 48,069,282$ 47,007,723$
$ 12,301,14230,213,972$ (26,356,262)$ 3,188,936$
3,719,136637,848 26,592,682 3,050,548
$ 16,020,27830,851,820$ 236,420$ 6,239,484$
88
CITY OF DUBUQUE, IOWA
FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
5
200320042002006
General Fund
Reserved4,573,723$ 3,233,335$ 3,169,453$ 1,477,141$
Unreserved12,218,787 13,685,063 13,706,134 16,050,997
Total general fund16,792,510$ $16,918,398$ 16,875,587$17,528,138
All Other Governmental Funds
Reserved14,525,251$ 14,231,390$ 13,607,759$ 15,564,016$
Unreserved, reported in:
Special revenue funds11,886,631 9,720,412 5,777,233 7,277,471
Debt service fund- (68,569) (56,320) -
Capital projects funds5,846,016 7,353,593 11,191,461 (981,248)
Permanent funds70,091 71,373 73,628 83,367
Total all other governmental funds32,327,989$ $31,308,199$ 30,593,761$21,943,606
TABLE 3
7
200200820092010
$ 1,699,8254,455,303$ 4,864,701$ 5,199,760$
17,982,01617,827,631 14,206,181 8,622,705
$ 22,282,934$19,681,841$ 19,070,882$13,822,465
$ 31,887,03813,942,519$ 19,634,305$ 24,404,656$
7,431,9317,586,898 5,981,390 4,011,022
-- - -
7,875,4484,195,354 5,659,214 (989,025)
33,958115,825 35,550 33,273
$ 25,840,596$47,228,375$ 31,310,459$27,459,926
89
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES OF GOVERNMENTAL FUNDS
LAST EIGHT FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal Year
5
200320042002006
Revenues
Taxes25,508,936$ 27,861,273$ 29,430,135$ 30,043,167$
Special assessments561,406 717,305 197,195 322,214
Licenses and permits753,990 1,063,081 1,078,722 965,712
Intergovernmental17,249,290 17,057,994 18,370,358 15,021,722
Charges for services5,325,031 5,666,307 5,918,542 6,620,243
Fines and forfeits465,787 241,572 267,536 204,201
Investment earnings1,750,519 502,932 1,197,691 1,096,445
Contributions447,960 345,415 306,809 246,908
Gaming9,539,598 11,631,022 11,694,105 14,034,847
Miscellaneous1,312,348 1,139,057 1,573,305 1,106,991
Total revenues62,914,865 66,225,958 70,034,398 69,662,450
Expenditures
Current
Public safety15,278,654 16,764,510 18,652,246 19,535,369
Public works11,860,004 10,723,527 21,301,239 11,605,567
Health and social services749,435 721,906 662,231 715,598
Culture and recreation7,515,522 7,470,264 8,180,832 9,998,462
Community and economic development9,010,868 11,924,011 9,825,470 9,981,645
General government3,835,609 4,227,335 4,022,785 4,090,866
Debt service
Principal2,009,986 2,117,773 1,769,960 1,325,970
Interest1,668,019 1,304,802 1,240,427 1,493,504
Capital projects9,930,311 6,865,119 8,226,840 14,528,340
Total expenditures61,858,408 62,119,247 73,882,030 73,275,321
Excess (deficiency) of revenues over
(under) expenditures1,056,457 4,106,711 (3,847,632) (3,612,871)
Other Financing Sources (Uses)
Issuance of bonds- - - 13,682
Discount on bonds- - (58,487) -
Premiums on bonds- - - -
Issuance of refunding bonds150,000 795,000 7,277,665 1,515,750
Payment to refunded bonds escrow agent(150,000) - - (1,494,371)
Transfers in5,367,986 8,662,300 12,981,655 7,334,605
Transfers out(21,073,805) (15,060,669) (16,105,184) (11,904,890)
Sale of capital assets117,239 264,344 170,642 150,491
Total other financing sources (uses)(15,588,580) (5,339,025) 4,266,291 (4,384,733)
Net change in fund balances(14,532,123)$$ (1,232,314)$418,659$(7,997,604)
Debt service as a percentage of noncapital expenditures7.37%6.32%5.46%4.99%
TABLE 4
7
200200820092010
$ 33,898,69232,526,525$ 34,454,146$ 36,252,156$
177,585586,459 250,372 318,178
1,153,4291,052,896 1,088,386 1,115,472
14,256,52316,744,703 15,796,822 27,310,624
7,833,1517,351,191 8,029,189 8,063,284
188,603158,360 199,839 224,601
2,731,9531,913,420 2,206,382 1,348,615
6,134,0021,168,463 1,369,759 2,333,995
15,346,46815,556,551 9,627,391 8,209,761
1,269,3761,149,546 1,600,679 2,111,834
82,989,78278,208,114 74,622,965 87,288,520
21,542,66120,743,196 21,335,192 21,979,729
16,331,10712,506,378 14,261,551 19,251,625
797,644783,209 815,873 813,609
10,277,78710,244,244 12,227,506 14,909,517
11,847,51211,695,902 11,953,279 14,654,816
6,310,9394,441,043 5,836,839 6,368,308
1,762,3751,663,339 2,169,678 2,651,765
2,406,4311,412,012 3,095,166 3,145,735
15,351,8488,227,257 24,274,120 14,831,118
86,628,30471,716,580 95,969,204 98,606,222
(3,638,522)6,491,534 (21,346,239) (11,317,702)
23,083,696743,591 5,905,000 4,722,176
(266,158)- (48,516) (31,990)
-- - 554,796
2,965,000- - 8,885,000
(2,875,000)- - (9,405,000)
14,801,58910,394,726 7,451,152 7,993,297
(18,185,109)(11,789,548) (9,084,228) (10,562,137)
2,901,1902,811,483 593,956 62,610
22,425,2082,160,252 4,817,364 2,218,752
$8,651,786$ 18,786,686$(16,528,875)$(9,098,950)
5.01%6.55%7.68%7.74%
90
CITY OF DUBUQUE, IOWA
TABLE5
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Ratio of Total
Real PropertyTotalExemptions
Taxable Value to
Levy Fiscal Taxable Assessed Taxable Assessed
Total Assessed Total Direct
YearYearValueValueReal PropertyValueValue
ValueTax Rate
199920011,377,518$ 2,014,897$ 10,194$ 1,367,324$ 2,014,897$ 67.8611.06712
200020021,429,025 2,050,019 10,097 1,418,928 2,050,019 69.2210.76080
200120031,540,206 2,317,926 10,141 1,530,065 2,317,926 66.0110.21200
200220041,572,776 2,350,317 9,694 1,563,082 2,350,317 66.5110.27303
200320051,666,033 2,575,400 9,599 1,656,434 2,575,400 64.3210.07200
200420061,710,334 2,679,078 9,862 1,700,472 2,679,078 63.479.69910
200520071,780,354 2,804,568 9,122 1,771,232 2,804,568 63.169.98030
200620081,823,304 2,870,178 8,939 1,814,365 2,870,178 63.2110.31690
200720091,949,071 3,171,681 9,298 1,939,773 3,171,681 61.169.96904
200820102,033,135 3,239,112 9,246 2,023,889 3,239,112 62.489.85777
91
CITY OF DUBUQUE, IOWA
TABLE6
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
(TAX RATES PER $1,000 ASSESSED VALUE)
Dubuque Board of Ratio of
Levy Fiscal DubuqueSchool Education and Area 1 Voc. Dubuque Dubuque City
YearYearCity DistrictIndependents TechCountyTotalto Total
19992001$11.06712 $12.17096 $0.50467 $0.56995 $5.60750 $29.92020 36.99%
2000200210.76080 13.50444 0.54806 0.57072 5.73669 31.12071 34.58
2001200310.21200 13.73882 0.55492 0.57507 5.60064 30.68145 33.28
2002200410.27303 13.84768 0.61686 0.57791 5.59515 30.91063 33.23
2003200510.07200 14.27491 0.57269 0.59804 6.08923 31.60687 31.87
200420069.69910 15.09695 0.60226 0.60517 6.08416 32.08764 30.23
200520079.98033 15.92538 0.60802 0.61127 6.17924 33.30424 29.97
2006200810.31690 16.40925 0.63160 0.61270 6.42691 34.39736 29.99
200720099.96904 16.89000 0.95250 0.55713 6.41459 34.78326 28.66
200820109.85777 16.87918 0.57970 0.99471 6.40435 34.71571 28.40
Separate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
YearYearGeneralTransitInsuranceBenefitsServiceTotal
19992001$8.10000 $0.35785 $0.15853 $1.24098 $1.20976 $11.06712
200020028.10000 0.26680 0.15287 1.53298 0.70815 10.76080
200120038.10000 0.31269 0.14642 1.24862 0.40427 10.21200
200220048.10000 0.32633 0.17342 1.51270 0.16058 10.27303
200320058.10000 0.37993 0.20994 1.25424 0.12789 10.07200
200420068.10000 0.42561 0.22000 0.95349 - 9.69910
200520078.10000 0.53643 0.21308 1.13082 - 9.98033
200620088.10000 0.60729 0.21760 1.39201 - 10.31690
200720098.10000 0.66727 0.08685 1.11492 - 9.96904
200820108.10000 0.60000 0.21492 0.90583 0.03702 9.85777
Source:
Dubuque County Auditor's Office.
92
CITY OF DUBUQUE, IOWA
TABLE7
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
20102001
Percentage of Percentage of
Total City Total City
Taxable Taxable
Taxable Assessed Taxable Assessed
Taxpayer Assessed Value RankValue Assessed Value RankValue
Peninsula Gaming Company56,784$ 11.75 %
Kennedy Mall31,133 2.96 19,990$ 1.95 %
Medical Associates Realty LP19,157 3.59 17,646 2.84
Otto A LLC17,500 4.54
Nordstrom, Inc.16,884 5.52 14,193 3.67
The McGraw Hill Companies Inc.14,440 6.45 7,685 6.36
Platinum Holdings LLC11,179 7.35
Minglewood Limited Partnership9,948 8.31
Asbury Dubuque LLC9,925 9.31
Lexington Dubuque LLC9,844 10 .30
U.S. West Communications8,476 4.40
Plaza 20 Inc. 5.37 7,861
A.Y. McDonald Manufacturing Co.7,490 7.35
American Trust & Savings Bank7,378 8.35
Plastic Center, Inc. 9.33 6,927
Georgia-Pacific Corp./Color-Box, LLC6,378 10.30
$ 6.08%104,024196,794$ 4.92%
Effective 2001, utility companies (Alliant Energy/Interstate Power and Aquila Natural Gas) pay excise tax on revenue to the state
rather than property taxes.
Source:
Dubuque County Auditor's Office.
93
CITY OF DUBUQUE, IOWA
TABLE8
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Ratio of Total
Tax Ratio of
Percent of Delinquent Collections to Outstanding Delinquent
Fiscal Total Tax Current Tax Current Taxes Tax Total Tax Total Tax Delinquent Taxes to Total
Year Levy (1)CollectionsCollectedCollectionsCollections (2)LevyTaxesTax Levy
200117,163$ 16,662$ 97.1%120$ 16,782$ 97.8%150$ 0.9%
200217,147 16,941 98.8 127 17,068 99.5 238 1.4
200315,328 15,215 99.3 216 15,431 100.7 130 0.8
200416,208 15,937 98.3 11 15,948 98.4 207 1.3
200516,408 16,383 99.8 20 16,403 100.0 196 1.2
200616,229 16,146 99.5 2 16,148 99.5 182 1.1
200717,216 17,193 99.9 4 17,197 99.9 174 1.0
200818,211 18,160 99.7 3 18,163 99.7 215 1.2
200918,992 18,670 98.3 5 18,675 98.3 262 1.4
201019,124 19,117 99.9 (10) 19,107 99.9 202 1.1
(1) Includes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
94
CITY OF DUBUQUE, IOWA
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governmental ActivitiesBusiness-Type Activities
Tax Tax
General Increment Increment General
Fiscal Obligation Financing Financing Loans Obligation Capital Loan Revenue Loans
YearBondsBondsNotesPayableBondsNotesBondsPayable
20013,405,000$ 5,963,585$ -$ -$ 9,005,000$ -$ 1,890,000$ -$
200220,945,000 5,873,155 - - 3,105,000 - 1,720,000 -
200319,865,000 4,943,169 - - 5,140,000 - 1,540,000 -
200419,010,000 3,820,394 655,000 - 6,660,000 - 1,350,000 -
200524,960,000 3,450,820 622,211 - 8,090,000 - 1,150,000 -
200624,165,750 3,040,304 590,439 - 11,619,250 - 940,000 -
200722,990,000 2,594,831 1,279,885 - 11,090,000 - 720,000 -
200821,860,000 25,136,402 1,279,636 - 11,570,000 611,977 490,000 -
200926,080,000 24,611,676 1,169,684 150,000 14,655,000 3,914,076 1,445,000 390,890
201027,540,000 24,689,216 1,049,696 282,857 24,225,000 8,289,621 1,125,000 371,978
Note:Details regarding the City's outstanding debt can be found in the notes to the financial statements.
Population and personal income data can be found in Table 17.
(1)
*Personal Income unavailable at report date.
TABLE9
Percentage Per
Total Primary of Personal Capita
GovernmentIncome (1)(1)
$ 0.864%35120,263,585
1.307%54931,643,155
1.264%54631,488,169
1.168%54631,495,394
1.363%66338,273,031
1.353%70040,355,743
1.258%67038,674,716
1.901%1,05760,948,015
2.241%1,25572,416,326
*1,51887,573,368
95
CITY OF DUBUQUE, IOWA
TABLE10
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS, EXCEPT PER CAPITA AMOUNT)
General Percentage of Percentage of
Fiscal Obligation Taxable Value Taxable Value Assessed Value Assessed Value Per
YearBonds (1) of Property of Property of Property of Property Capita
20013,405$ 1,367,324$ 0.25%2,014,897$ 0.17%59
200220,945 1,418,928 1.48%2,050,019 1.02%363
200319,865 1,530,057 1.30%2,317,926 0.86%344
200419,010 1,563,082 1.22%2,350,317 0.81%330
200524,960 1,656,434 1.51%2,575,400 0.97%433
200624,166 1,700,472 1.42%2,679,078 0.90%419
200722,990 1,771,232 1.30%2,804,568 0.82%399
200821,860 1,814,365 1.20%2,870,178 0.76%379
200926,080 1,939,773 1.34%3,171,681 0.82%452
201027,540 2,023,899 1.36%3,239,112 0.85%477
(1) Excludes general obligation bonds reported in enterprise funds.
96
CITY OF DUBUQUE, IOWA
TABLE11
DIRECT AND OVERLAPPING GOVERNMENTAL ACTIVITIES DEBT
AS OF JUNE 30, 2010
eenera
NtGl
Obligation Percentage Amount
Bonded Debt Applicable Applicable to
JurisdictionOutstanding to City Government
Direct, City of Dubuque, Iowa27,540,000$ (1)100.00%27,540,000$
Overlapping:
Dubuque County480,000 57.02 273,696
Dubuque Community School District- - -
Northeast Iowa Community College34,065,000 22.64 7,712,316
Total Overlapping34,545,000 7,986,012
Total62,085,000$ 35,526,012$
Source:
Dubuque County Auditor, Dubuque Community School District and Northeast Iowa Community
College.
(1) Excludes general obligation bonds reported in enterprise funds.
Note:
Overlapping governments are those that coincide, at least in part, with the geographic boundaries of
the City. This schedule estimates the portion of the outstanding debt of those overlapping governments
that is borne by the residents and businesses of Dubuque. This process recognizes that, when considering
the City’s ability to issue and repay long-term debt, the entire debt burden borne by the residents and
businesses should be taken into account. However, this does not imply that every taxpayer is a resident,
and therefore responsible for repaying the debt of each overlapping government.
97
98
CITY OF DUBUQUE, IOWA
TABLE13
REVENUE DEBT COVERAGE
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
Net
Revenue
AvailableNext Fiscal Year's
Debt Service Requirements
FiscalGrossOperatingFor Debt
YearRevenues (1)Expenses (2)ServicePrincipalInterestTotalCoverage (3)
WATER UTILITY
20084,933$ 3,959$ 974$ 39$ 27$ 66$ 14.76
20095,391 5,196 195 104 99 203 0.96
20105,353 5,153 200 108 79 187 1.07
STORMWATER UTILITY
20092,402 1,309 1,093 75 58 133 8.22
20102,357 1,320 1,037 132 110 242 4.29
SEWAGE DISPOSAL WORKS
20096,084 5,093 991 - 7 7 141.57
20105,995 5,331 664 144 128 272 2.44
PARKING BONDS
20011,552 717 835 170 86 256 3.26
20021,452 737 715 180 79 259 2.76
20031,484 847 637 190 71 261 2.44
20041,659 971 688 200 63 263 2.62
20051,934 960 974 210 54 264 3.69
20061,933 977 956 220 44 264 3.62
20072,113 1,014 1,099 230 34 264 4.16
20082,224 1,495 729 240 23 263 2.77
20092,270 1,412 858 250 12 262 3.27
Parking revenue bonds matured in 2010.
(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.
99
CITY OF DUBUQUE, IOWA
TABLE14
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
Fiscal Year Water ReceiptsSewer Receipts
20014,135,930$ 4,387,111$
20024,233,908 4,319,655
20034,154,899 4,252,098
20044,350,338 4,466,035
20054,340,789 4,478,205
20064,798,408 4,920,376
20074,856,353 5,276,454
20085,020,001 5,481,074
20095,358,419 5,821,251
20105,503,277 5,851,401
Source:
Cash basis receipt ledgers.
100
CITY OF DUBUQUE, IOWA
TABLE15
WATER METERS BY RATE CLASS
LAST FIVE FISCAL YEARS *
Fiscal
Year ResidentialCommercialIndustrialGovernmentTotal
200619,813 1,820 73 35 21,741
200719,914 1,839 74 38 21,865
200819,970 1,878 70 45 21,963
200920,058 1,895 72 48 22,073
201020,204 1,887 71 48 22,210
*Prior five years information not available.
101
CITY OF DUBUQUE, IOWA
TABLE16
LARGEST WATER AND SEWER CUSTOMERS
FISCAL YEAR 2010
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot Inc.249,865$ 14.54%274,146$ 14.69%
Loras College58,423 21.0671,224 51.22
Praire Farms Dairy Inc.56,896 31.03160,937 22.75
Mercy Medical Center50,678 40.9277,737 41.33
University of Dubuque43,467 50.79
Dubuque Community Schools43,016 60.7848,643 80.83
City of Dubuque Sewer Treatment40,061 70.73
Inland Protein Corporation37,366 80.68103,650 31.77
Alliant Power Company34,393 90.62
Clarke College31,636 100.57
Tablemound Mobile Home Park49,543 60.85
Finley Hospital48,908 70.84
Premier Linen & Dry Cleaning45,470 90.78
Western Dubuque Biodiesel42,335 100.72
Total Receipts5,503,277$ 5,851,401$
102
CITY OF DUBUQUE, IOWA
TABLE17
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
Public
School
Per Capital
Median Enrollment
Personal Unemployment
YearPopulationPersonal IncomeAge (2)(3)
Income (1)Rate (4)
200157,6862,345,539,000$ $26,309349,6804.0%
200257,6862,421,441,000 26,760379,9063.9
200357,6862,491,982,000 27,6313710,1224.0
200457,6862,695,504,000 29,5493710,4284.4
200557,6862,807,625,000 30,6503710,5474.5
200657,6862,983,000,000 32,2903710,7333.5
200757,6863,074,666,000 33,2903710,7273.7
200857,6863,206,000,000 34,5713810,6143.8
200957,6863,231,613,000 34,5713710,6976.2
201057,686**3710,5176.4
Sources:
(1)U.S. Department of Commerce, Bureau of Economic Analysis.
(2)Bureau of Census: 2000 Census.
(3)Dubuque Community School District.
(4)Iowa Department of Employment Services as of June 30.
*Unavailable at report date.
103
CITY OF DUBUQUE, IOWA
TABLE18
PRINCIPAL EMPLOYERS
CURRENT YEAR AND YEAR 2002
20102002
Percentage of Percentage of
# of Total City # of Total City
EmployeesEmployment (1)EmployeesEmployment (1)
EmployerRankRank
John Deere (2)1,800 13.40 % 1,800 13.35 %
Dubuque Community Schools1,627 23.07 1,410 22.85
Mercy Medical Center1,324 32.50 1,340 32.49
IBM (3)1,300 42.45
Finley Hospital920 51.74 760 61.41
Eagle Window & Door750 61.42 700 71.30
Medical Associates743 71.40 1,007 51.87
City of Dubuque664 81.25 519 10.97
Prudential Retirement550 91.04
Dubuque Racing Association500 10.94
Holy Family Catholic Schools500 10.94
CIGNA Retirement625 81.16
Diamond Jo 91.15 620
McCoy Group (4)1,200 42.23
9,98110,678
Source:
Greater Dubuque Development Corp.
(1) Based on the percentage of total employment for Dubuque area from the U.S. Department of Labor,
Bureau of Labor Statistics.
(2) Located just outside City Limits.
(3) Anticipated employment. Actual number not available at this time.
(4) McCoy Group in 2002 includes all employees not just City of Dubuque.
2001 information was not available to show information from nine years ago. 2002 information has been shown for
comparison instead.
104
105
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
20012002200320042005
Public Safety
Police
1
Physical arrests2,564-4,0004,5504,795
2
Traffic violations-2,4622,1262,4272,171
3
Parking violations--51,16249,98551,004
Fire
Number of calls answered3,7364,7743,9744,1814,300
Inspections conducted8058415244081,135
Sewer
Sewage system
Daily average treatment in gallons9,000,0009,000,0008,000,0008,000,0008,500,000
Maximum daily capacity of treatment
plant in gallons15,000,00015,000,00015,000,00015,000,00013,500,000
Water systems
Daily average consumption in gallons8,000,0008,000,0008,000,0008,000,0007,720,000
Maximum daily capacity of plant in
gallons18,000,00018,000,00018,000,00018,000,00018,000,000
Refuse (Municipal Collection)
Tonnage13,97913,59410,43510,33010,428
Sources: Various City Departments.
1
Statistics not available for fiscal year 2002.
2
Statistics begin in fiscal year 2002.
3
Statistics begin in fiscal year 2003.
TABLE 20
Fiscal Year
20062007200820092010
4,7905,0785,0906,3256,365
2,1111,9866,8818,8018,901
46,57542,53040,74136,45737,056
4,1764,4544,6994,4804,557
4093606244431,035
8,500,0008,000,00010,310,0007,981,0009,068,000
13,500,00013,500,00013,500,00021,131,00021,131,000
8,057,0007,950,0007,812,0007,845,0007,684,000
18,000,00018,000,00017,000,00018,000,00018,000,000
10,57310,80711,79810,77410,615
106
CITY OF DUBUQUE, IOWA
CAPITAL ASSET STATISTICS BY FUNCTION/PROGRAM
LAST TEN FISCAL YEARS
Fiscal Year
20012002200320042005
Public safety
Police
Stations11111
Patrol units1818181819
Fire
Stations66666
Aerial trucks33333
Public works
Streets
Miles (1)**273290290
Street lights (1)1,1911,1951,5001,5911,631
Health and social services
Hospital22222
Number of patient beds478478584560421
Cultural and recreation
Library11111
Golf11111
Parks3839424244
Acreage833834850850855
Recreation
Civic center11111
Swimming pools22222
Softball fields77777
Baseball fields11111
Tennis courts2020202020
Sewer
Sewage system
Miles of sanitary sewer (1)*****
Miles of storm sewers (1)*****
Number of treatment plants11111
Number of service connectors20,55020,20020,80021,00021,000
Water systems
Miles of water mains302305305310312
Number of service connectors21,00020,55021,03221,20621,016
Number of city owned fire hydrants2,6852,7122,7132,7362,770
Sources:
Various City Departments.
(1)City GIS System.
*Information not available.
TABLE 21
Fiscal Year
20062007200820092010
11111
1919191922
66666
33333
295307317320321
1,7551,8021,8551,8771,916
22222
421405405405389
11111
11111
4447474748
845898898898901
11111
22222
78777
11111
1919202020
263286290295300
116120122143144
11111
21,44321,56821,63321,34721,599
313315316317318
21,25721,21021,24321,34721,986
2,7802,7982,8122,8312,843
107
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REPORT ON INTERNAL CONTROL OVER FINANCIAL REPORTING
AND ON COMPLIANCE AND OTHER MATTERS BASED ON AN AUDIT OF
FINANCIAL STATEMENTS PERFORMED IN ACCORDANCE WITH
GOVERNMENT AUDITING STANDARDS
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the accompanying financial statements of the governmental activities, the business-type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa, as of and for the year ended June 30, 2010,
which collectively comprise the City’s basic financial statements listed in the table of contents, and have
issued our report thereon dated January 21, 2011. We conducted our audit in accordance with auditing
standards generally accepted in the United States of America and the standards applicable to financial
audits contained in Government Auditing Standards, issued by the Comptroller General of the United
States.
The financial statements of Dubuque Initiatives and Subsidiaries, a discretely presented component unit,
were not audited in accordance with Government Auditing Standards, and accordingly, this report does
not extend to those financial statements.
Internal Control Over Financial Reporting
In planning and performing our audit, we considered the City’s internal control over financial reporting as
a basis for designing our auditing procedures for the purpose of expressing our opinions on the financial
statements, but not for the purpose of expressing an opinion on the effectiveness of the City’s internal
control over financial reporting. Accordingly, we do not express an opinion on the effectiveness of the
City’s internal control over financial reporting.
Our consideration of internal control over financial reporting was for the limited purpose described in the
preceding paragraph and was not designed to identify all deficiencies in internal control over financial
reporting that might be significant deficiencies or material weaknesses and therefore, there can be no
assurance that all deficiencies, significant deficiencies, or material weaknesses have been identified.
However, as described in the accompanying Schedule of Findings and Questioned Costs, we identified
certain deficiencies in internal control over financial reporting that we consider to be material
weaknesses.
A deficiency in internal control exists when the design or operation of a control does not allow
management or employees, in the normal course of performing their assigned functions, to prevent, or
detect and correct misstatements on a timely basis. A material weakness is a deficiency, or a combination
of deficiencies, in internal control such that there is a reasonable possibility that a material misstatement
of the City’s financial statements will not be prevented, or detected and corrected on a timely basis. We
consider the deficiencies in internal control described in Part II of the accompanying Schedule of
Findings and Questioned Costs as items II-A-10 and II-B-10 to be material weaknesses.
108
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Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City’s financial statements are free of
material misstatement, we performed tests of its compliance with certain provisions of laws, regulations,
contracts, and grant agreements, non-compliance with which could have a direct and material effect on
the determination of financial statement amounts. However, providing an opinion on compliance with
those provisions was not an objective of our audit, and accordingly, we do not express such an opinion.
The results of our tests disclosed no instances of non-compliance or other matters that are required to be
reported under Government Auditing Standards. However, we noted certain immaterial instances of non-
compliance or other matters that are described in Part III of the accompanying Schedule of Findings and
Questioned Costs.
Comments involving statutory and other legal matters about the City’s operations for the year ended
June 30, 2010, are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City. Since our audit was based on tests and samples, not all transactions
that might have had an impact on the comments were necessarily audited. The comments involving
statutory and other legal matters are not intended to constitute legal interpretations of those statutes.
The City’s responses to findings identified in our audit are described in the accompanying Schedule of
Findings and Questioned Costs. We did not audit the City’s responses, and accordingly, we express no
opinion on them.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque,
Iowa, may report, including federal awarding agencies and pass-through entities, and is not intended to be
and should not be used by anyone other than these specified parties.
Dubuque, Iowa
January 21, 2011
109
REPORT ON COMPLIANCE WITH REQUIREMENTS THAT COULD HAVE
A DIRECT AND MATERIAL EFFECT ON EACH MAJOR PROGRAM AND ON
INTERNAL CONTROL OVER COMPLIANCE IN ACCORDANCE
WITH OMB CIRCULAR A-133
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Compliance
We have audited the compliance of the City of Dubuque, Iowa, with the types of compliance
requirements described in the OMB Circular A-133 Compliance Supplement that could have a direct and
material effect on each of the City’s major federal programs for the year ended June 30, 2010. The City’s
major federal programs are identified in the summary of the independent auditor’s results section of the
accompanying Schedule of Findings and Questioned Costs. Compliance with the requirements of laws,
regulations, contracts, and 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; 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. Those
standards and OMB Circular A-133 require that we plan and perform the audit to obtain reasonable
assurance about whether non-compliance with the types of compliance requirements referred to above
that could have a direct and material effect on a major federal program occurred. An audit includes
examining, on a test basis, evidence about the City’s compliance with those requirements and performing
such other procedures as we considered necessary in the circumstances. We believe that our audit
provides a reasonable basis for our opinion. Our audit does not provide a legal determination on the City’s
compliance with those requirements.
In our opinion, the City of Dubuque, Iowa, complied, in all material respects, with the compliance
requirements referred to above that could have a direct and material effect on each of its major federal
programs for the year ended June 30, 2010.
Internal Control Over Compliance
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. In planning and performing our audit, we considered the City’s internal control over
compliance with the requirements that could have a direct and material effect on a major federal program
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, but not for the
purpose of expressing an opinion on the effectiveness of internal control over compliance. Accordingly,
we do not express an opinion on the effectiveness of the City’s internal control over compliance.
110
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A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, non-compliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a type of compliance requirement of a federal
program will not be prevented, or detected and corrected, on a timely basis.
Our consideration of internal control over compliance was for the limited purpose described in the first
paragraph of this section and was not designed to identify all deficiencies in internal control over
compliance that might be deficiencies, significant deficiencies, or material weaknesses. We did not
identify any deficiencies in internal control over compliance that we consider to be material weaknesses,
as defined above.
This report, a public record by law, is intended solely for the information and use of the officials,
employees, and citizens of the City of Dubuque, Iowa, and other parties to whom the City of Dubuque,
Iowa, may report, including federal awarding agencies and pass-through entities, and is not intended to be
and should not be used by anyone other than these specified parties.
Dubuque, Iowa
January 21, 2011
111
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
FederalPass-Through
CFDAEntity IdentifyingFederal
rantorPrograNumeNumeExpentures
G/mbrbrdi
U.S. Department of Commerce
Direct Program
Economic Development - Support for Planning
Organizations11.3027,727$
U.S. Department of Housing and Urban Development
Direct Program
Community Development Block Grants/Entitlement
Grants14.218724,747
Community Development Block Grants/Entitlement
Grants14.2181,171,026
Pass-Through Program From
Iowa Department of Economic Development
ARRA - Community Development Block Grants/
State's Program and Non-Entitlement Grants in
Hawaii14.22808-NSP-019130,097
Direct Program
Shelter Plus Care14.23846,685
ARRA - Community Development Block Grant ARRA
Entitlement Grants14.253235,588
ARRA - Homelessness Prevention and Rapid
Re-Housing Program14.257166,788
Fair Housing Assistance Program - State and Local14.40125,678
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation14.85683,508
Section 8 Housing Choice Vouchers14.871685,872
Section 8 Housing Choice Vouchers14.871216
Section 8 Housing Choice Vouchers14.8714,219,332
Section 8 Housing Choice Vouchers14.87110,328
Section 8 Housing Choice Vouchers14.87135,081
Section 8 Housing Choice Vouchers14.8713,281
Section 8 Housing Choice Vouchers14.87113,375
Lead-Based Paint Hazard Control in Privately-Owned
Housing14.9001,259,008
Total U.S. Department of Housing and Urban Development8,810,610
U.S. Department of the Interior
Direct Program
Historic Preservation Fund Grants-In-Aid15.904125,000
Pass-Through Program From
State Historical Society of Iowa
Historic Preservation Fund Grants-In-Aid15.9042008-316,177
Direct Program
Outdoor Recreation Acquisition, Development and
Planning15.91619,000
(continued)
112
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
FederalPass-Through
CFDAEntity IdentifyingFederal
rantorPrograNumeNumeExpentures
G/mbrbrdi
U.S. Department of the Interior (continued)
Pass-Through Program From
Iowa Department of Natural Resources
Outdoor Recreation Acquisition, Development and
Planning15.91619-01272156,000$
Direct Program
Save America's Treasures15.929295,000
Total U.S. Department of the Interior611,177
U.S. Department of Justice
Pass-Through Program From
Iowa Department of Justice
Crime Victim Assistance Division
Violence Against Women Formula Grants16.588VW-10-24C798
Direct Program
Bulletproof Vest Partnership Program16.60768
Bulletproof Vest Partnership Program16.6072,069
Bulletproof Vest Partnership Program16.6071,917
Pass-Through Program From
Dubuque County, Iowa Sheriff
Public Safety Partnership and Community Policing
Grants16.71009-HOTSPOTS556
Helping Services of Northeast Iowa, Inc.
Enforcing Underage Drinking Laws Program16.7272007-AHFX00422,150
Enforcing Underage Drinking Laws Program16.72701-DJ08-F094,785
Direct Program
Edward Byrne Memorial Justice Assistance Grant
Program16.73872,057
Edward Byrne Memorial Justice Assistance Grant
Program16.7389,381
Edward Byrne Memorial Justice Assistance Grant
Program16.7386,521
Pass-Through Program From
Dubuque County, Iowa Sheriff
ARRA - Recovery Act - Edward Byrne Memorial
Justice Assistance Grant (JAG) Program/Grants
to States and Territories16.80309 JAG/ARRA-21042,852
Direct Program
ARRA - Recovery Act - Edward Byrne Memorial
Justice Assistance Grant (JAG) Program/Grants
to Units of Local Government16.804171,120
Total U.S. Department of Justice314,274
(continued)
113
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
FederalPass-Through
CFDAEntity IdentifyingFederal
rantorPrograNumeNumeExpentures
G/mbrbrdi
U.S Department of Transportation
Direct Program
Airport Improvement Program20.10647,499$
Airport Improvement Program20.106434,783
Airport Improvement Program20.1067,521
Airport Improvement Program20.106162,909
Pass-Through Program From
Iowa Department of Transportation
Highway Planning and Construction20.205STP-E-2100(648)-8V-3111,490
Highway Planning and Construction20.205EDP-2100(652)-7Y-314,497,283
Highway Planning and Construction20.205STP-ES-2100(619)--8I-3143,990
ARRA - Highway Planning and Construction20.205ESL-2100(646)-7S-312,909,534
Highway Planning and Construction20.205SB-IA-2100(639)-2T-31183,200
Highway Planning and Construction20.205EDP-2100(638)-7Y-311,671
Highway Planning and Construction20.205STP-U-2100(646)-70-31150,633
Highway Planning and Construction20.205STP-U-2100(641)-70-31462,757
Highway Planning and Construction20.205STP-U-2100(634)--70-312,064,097
Direct Program
Federal Transit-Formula Grants20.507978,632
Pass-Through Program From
Iowa Department of Transportation
Capital Assistance Program for Elderly Persons
and Persons with Disabilities20.51316-X001-210-0732,368
Direct Program
State and Community Highway Safety20.60013,622
Occupant Protection Incentive Grants20.6029,428
Total U.S. Department of Transportation12,011,417
Environmental Protection Agency
Pass-Through Program From
Iowa Finance Authority
ARRA - Capitalization Grants for Clean Water
State Revolving Funds66.458CS-192421-01729,000
ARRA - Capitalization Grants for Clean Water
State Revolving Funds66.458CS-192421-01549,896
Capitalization Grants for Clean Water State
Revolving Funds66.458PD-CW-06-3951,345
Capitalization Grants for Clean Water State
Revolving Funds66.458PD-CW-09-49215,250
Capitalization Grants for Clean Water State
Revolving Funds66.458PD-CW-06-39180
Capitalization Grants for Clean Water State
Revolving Funds66.458CS 192341-011,066
Capitalization Grants for Clean Water State
Revolving Funds66.458PD-CW-06-415,128
(continued)
114
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
FederalPass-Through
CFDAEntity IdentifyingFederal
rantorPrograNumeNumeExpentures
G/mbrbrdi
Environmental Protection Agency (continued)
Pass-Through Program From (continued)
Iowa Finance Authority (continued)
Capitalization Grants for Clean Water State
Revolving Funds66.458PD-CW-06-4120,414$
Capitalization Grants for Clean Water State
Revolving Funds66.458PD-CW-06-393,271
ARRA - Capitalization Grants for Drinking Water
State Revolving Funds66.468FS-31-10-DWSRF-023472,806
Capitalization Grants for Drinking Water State
Revolving Funds66.468FS-31-10-DWSRF-02376,760
Capitalization Grants for Drinking Water State
Revolving Funds66.468FS-31-08-DWSRF-00228,471
Direct Program
Environmental Education Grants66.95114,778
Total Environmental Protection Agency2,168,365
U.S, Department of Energy
Direct Program
ARRA - Energy Efficiency and Conservation
Block Grant Program81.12840,079
U.S. Department of Education
Pass-Through Program From
Iowa Department of Transportation
ARRA - State Fiscal Stabilization Fund (SFSF) -
Government Services, Recovery Act84.397S397A090016A68,938
U.S. Department of Health and Human Services
Pass-Through Program From
Dubuque County, Iowa Health Department
Public Health Emergency Preparedness93.06931092,132
Public Health Emergency Preparedness93.0695880BT3120,789
Total U.S. Department of Health and Human Services22,921
Corporation for National and Community Service
Pass-Through Program From
Iowa Commission on Volunteers
ARRA - AmeriCorps94.00609-CR-13152,051
AmeriCorps94.00608-AC-1354,700
AmeriCorps94.00609-AC-13154,828
Total Corporation for National and Community Service361,579
(continued)
115
CITY OF DUBUQUE, IOWA
SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
FederalPass-Through
CFDAEntity IdentifyingFederal
rantorPrograNumeNumeExpentures
G/mbrbrdi
U.S. Department of Homeland Security
Pass-Through Program From
Iowa Department of Public Defense
Disaster Grants - Public Assistance
(Presidentially Declared Disasters)97.036FEMA DR-1763-DR-IA80,891$
Iowa Homeland Security and Emergency Management
Hazard Mitigation Grant97.039HMPG-DR-1705-0035-011,465,831
Total U.S. Department of Homeland Security1,546,722
Total$25,963,809
See notes to the Schedule of Expenditures of Federal Awards. 116
CITY OF DUBUQUE, IOWA
NOTES TO THE SCHEDULE OF EXPENDITURES OF FEDERAL AWARDS
FOR THE YEAR ENDED JUNE 30, 2010
NOTE 1 – BASIS OF PRESENTATION
The accompanying Schedule of Expenditures of Federal Awards includes the federal grant activity of the
City of Dubuque, Iowa, and is presented on the accrual basis of accounting. The information in this
schedule is presented in accordance with the requirements of OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations. Therefore, some amounts presented in this schedule
may differ from amounts presented in, or used in the preparation of, the basic financial statements.
NOTE 2 – SUBRECIPIENTS
Of the federal expenditures presented in the schedule, the City of Dubuque, Iowa, provided federal
awards to subrecipients as follows:
Federal Amount Provided
Program Title CFDA Number to Subrecipients
Community Development Block Grants/
Entitlement Grants 14.218 $ 131,521
ARRA – Homelessness Prevention and Rapid
Re-Housing Program 14.257 $ 166,032
ARRA – Recovery Act – Edward Byrne Memorial Justice
Assistance Grant (JAG) Program/Grants to Units of
Local Government 16.804 $ 58,729
117
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2010
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor’s report issued Unqualified
Internal control over financial reporting:
Material weakness identified Yes
Significant deficiency None reported
Noncompliance material to financial statements noted No
Federal Awards
Internal control over major programs:
Material weakness identified No
Significant deficiency None reported
Type of auditor’s report issued on compliance for major programs Unqualified
Any audit findings disclosed that are required to be reported in
accordance with Circular A-133, Section .510(a) No
Identification of major programs:
CFDA Number Name of Federal Program or Cluster
Cluster
14.218 Community Development Block Grants/
Entitlement Grants
14.253 Community Development Block Grant
ARRA Entitlement Grants
14.257 Homelessness Prevention and Rapid
Re-Housing Program
20.205 Highway Planning and Construction
66.458 Capitalization Grants for Clean Water
State Revolving Funds
66.468 Capitalization Grants for Drinking
Water State Revolving Funds
94.006 AmeriCorps
97.039 Hazard Mitigation Grant
Dollar threshold used to distinguish
between Type A and Type B programs $778,914
Auditee qualified as low-risk auditee No
118
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2010
Part II: Findings Related to the Financial Statements:
MATERIAL WEAKNESSES
II-A-10 Preparation of Financial Statements
Criteria – A properly designed system of internal control over financial reporting calls for the
preparation of an entity's financial statements and accompanying notes to the financial
statements by internal personnel of the entity.
Condition – As auditors, we were requested to draft the financial statements and
accompanying notes to the financial statements. It is the responsibility of management and
those charged with governance to make the decision whether to accept the degree of risk
associated with this condition because of cost or other considerations.
Cause – We recognize that with a limited number of office employees, preparation of the
financial statements is difficult.
Effect – The effect of this condition is that the financial reporting is prepared by a party
outside of the entity. The outside party does not have the constant contact with ongoing
financial transactions that internal staff have.
Recommendation – We recommend that City officials continue reviewing operating
procedures in order to obtain the maximum internal control possible under the circumstances
to enable staff to draft the financial statements internally.
Response – The American Institute of Certified Public Accountants implemented new
auditing standards in 2007. There have been no changes in City procedures. A cost benefit
analysis reflects that the City continue with the current contractual agreement that the CPA
firm prepare our financial statements. The current five year audit contractual agreement
expires with year ending June 30, 2010, audit and City will review the issue prior to any new
agreement. The City implemented procedures to prepare the majority of adjusting journal
entries.
Conclusion – Response accepted.
II-B-10 Material Audit Adjustments
Criteria – A properly designed system of internal control over financial reporting allows
entities to initiate, authorize, record, process, and report financial data reliably in accordance
with generally accepted accounting principles and the requirements of OMB Circular A-133,
Audits of States, Local Governments, and Non-Profit Organizations.
Condition – During the course of our engagement, we proposed material audit adjustments to
the financial statements and Schedule of Expenditures of Federal Awards that would not have
been identified as a result of the City’s existing internal controls and, therefore, could have
resulted in a material misstatement of the City’s financial statements and Schedule of
Expenditures of Federal Awards.
119
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2010
Part II: Findings Related to the Financial Statements: (continued)
Cause – There is a limited number of office employees with varying levels of experience with
the reporting requirements.
Effect – The effect of this condition was financial data not in accordance with generally
accepted accounting principles or the requirements of OMB Circular A-133, Audits of States,
Local Governments, and Non-Profit Organizations.
Recommendation – We recommend that finance staff continue to receive relevant training
and that management review all documentation completed by staff for use in preparing the
financial statements and Schedule of Expenditures of Federal Awards.
Response – Finance staff will review audit findings with the City Grant Committee. Finance
continues to improve communication between departments receiving grants, Budget
Department and Finance Department, to capture applicable cash and accrual basis
information for grants. Finance will complete additional review for debt workpapers for
proper classification by fund.
Conclusion – Response accepted.
Part III: Other Findings Related to Required Statutory Reporting:
III-A-10 Certified Budget – Disbursements during the year ended June 30, 2010, exceeded the amount
budgeted in the community and economic development function. Chapter 384.20 of the Code
of Iowa states, in part, “Public monies may not be expended or encumbered except under an
annual or continuing appropriation.”
Recommendation – The budget should have been amended in accordance with Chapter
384.18 of the Code of Iowa before disbursements were allowed to exceed the budget.
Response – The City will continue to educate departments about the necessity of amending
the budget for grants and one-time revenues prior to being expended. The budget will be
amended in the future, if applicable.
Conclusion – Response accepted.
III-B-10 Questionable Expenditures – No expenditures that may not meet the requirements of public
purpose as defined in an Attorney General’s opinion dated April 25, 1979, were noted.
III-C-10 Travel Expense – No expenditures of City money for travel expenses of spouses of City
officials or employees were noted.
120
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2010
Part III: Other Findings Related to Required Statutory Reporting: (continued)
III-D-10 Business Transactions – Business transactions between the City and City officials or
employees are detailed as follows:
Name, Title, and Transaction
Business Connection Description Amount
Melissa McGinnis, employee, spouse is Construction, per bid $ 11,857
owner of Quality Brick
Laura Carstens, employee, spouse is Services 1,722
owner of Mississippi Mud Studios/Clay
John Hefel, employee, spouse is owner of Services 533
A Frame of Mind Framing & Gallery
Ric Jones, council memeber, owner of Services 450
RJ Productions
Molly Menster, employee, spouse is Tina Services 250
Sio.
In accordance with Chapter 362.5(10) of the Code of Iowa, the transactions with A Frame of
Mind Framing & Gallery, RJ Productions, and Tina Sio do not appear to represent conflicts
of interest since total transactions with each individual were less than $1,500 during the fiscal
year. The transaction with Quality Brick does not appear to represent a conflict of interest
since it was entered into through competitive bidding in accordance with Chapter 362.5(4) of
the Code of Iowa. The transaction with Mississippi Mud Studios/Clay may represent a
conflict of interest.
Recommendation – We recommend the City review the transaction with Mississippi Mud
Studios/Clay with legal counsel.
Response – After reviewing the related party transactions with Mississippi Mud Studios/Clay
with legal counsel, it has been determined that the transaction does not represent a conflict of
interest. Since a Mediacom grant funded the project through their Arts and Cultural program,
City funds were not directly utilized. The Mediacom grant funded the project and
expenditures.
Conclusion – Response accepted.
III-E-10 Bond Coverage – Surety bond coverage of City officials and employees is in accordance with
statutory provisions. The amount of coverage should be reviewed annually to ensure the
coverage is adequate for current operations.
III-F-10 Council Minutes – No transactions were found that we believe should have been approved in
the Council minutes but were not.
121
CITY OF DUBUQUE, IOWA
SCHEDULE OF FINDINGS AND QUESTIONED COSTS
FOR THE YEAR ENDED JUNE 30, 2010
Part III: Other Findings Related to Required Statutory Reporting: (continued)
III-G-10 Deposits and Investments – No instances of non-compliance with the deposit and investment
provisions of Chapters 12B and 12C of the Code of Iowa and the City’s investment policy
were noted.
III-H-10 Revenue Bonds – No instances of non-compliance with the provisions of the City’s Sewage
Disposal Works, Stormwater Utility, or Parking Facilities revenue debt resolutions were
noted.
The City has created the reserve and sinking funds required by water revenue bond debt
covenants. The reserve and sinking funds are appropriately funded at June 30, 2010. In
addition, the Water Utility revenue debt covenants include a requirement for the utility to
produce net revenues of at least 125% of the current year debt service requirement of the
Series 2008 water utility revenue bonds, and all other revenue bonds or notes ranking on a
parity with the 2008 water utility revenue bonds. In January of 2011, the City entered into a
subordinate agreement with the Iowa Finance Authority (lender for the water revenue capital
loan notes) which retroactively subordinates the water revenue capital loan notes in relation
to the Series. This agreement allows the City to exclude the water revenue loan notes in the
125% computation until December 31, 2015. By excluding the water revenue capital loan
notes, the City meets the 125% requirement for fiscal year 2010.
III-I-10 Solid Waste Fees Retainage – The Dubuque Metropolitan Area Solid Waste Agency, a
component unit of the City, used or retained the solid waste fees in accordance with Chapter
455B.310 of the Code of Iowa.
122