Comprehensive Annual Financial Report (CAFR) FY 2012Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
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All- America City
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2012
SUBJECT: Submission of Fiscal Year Ended June 30, 2012 Comprehensive Annual
Financial Report (CAFR), Auditor's Communications with Those Charged
with Governance and City Response
DATE: December 28, 2012
Finance Director Ken TeKippe is transmitting the Fiscal Year 2012 Comprehensive
Financial Report (CAFR), Auditor's Communication with Those Charged with
Governance Letter, along with the City Finance staff's response. The City's
independent auditor issued an unqualified opinion on the financial statements.
Dave Cahill, audit partner in charge from Eide Bailly CPA's, will be attending the City
Council meeting and be available for any questions of clarifications. Finance Director
Ken TeKippe and Assistant Finance Director Jean Nachtman will also be attending the
meeting.
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Michael C. Van Milligen
MCVM:jh
Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Teri Goodmann, Assistant City Manager
Kenneth J. TeKippe, Finance Director
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
had
All-America City
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2007
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
DATE: January 3, 2013
SUBJECT: Submission of Fiscal Year Ended June 30, 2012 Comprehensive Annual Financial
Report (CAFR) and Auditor's Communication with Those Charged with Governance
and City Responses to Findings
INTRODUCTION
The purpose of this memorandum is to submit the Fiscal Year 2012 CAFR audited by Eide Bailly, LLP, Auditor's
Communication with Those Charged with Governance Letter along with the City Finance staffs responses. The City's
independent auditor issued an unqualified opinion on the financial statements.
BACKGROUND
Iowa state code requires an annual audit by independent certified public accountants or the State Auditor. In addition to
meeting the requirements set forth in state statues, the audit also was designed to meet the requirements of an annual single
audit in conformity with the U.S. Office of Management and Budget Circular A -133, Audits of States, Local Governments and
Non - Profit Organizations.
This Comprehensive Annual Financial Report is in conformance with the standards set by OMB CircularA -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. Governrnental 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.
DISCUSSION
AUDITOR'S COMMUNICATION with THOSE CHARGED with GOVERNANCE
Included is a separate letter from Eide Bailly, LLP. The letter contains audit information required by auditing standards to be
communicated to the Mayor and City Council.
ACTION TO BE TAKEN
It is recommended that the City Council receives and files the Fiscal Year 2012 reports identified above and receives and
files this communication and related enclosures.
Copies of the financial statements for the Dubuque Metropolitan Area Solid Waste Agency are available in the Finance
Department if desired by Council members.
Dave Cahill, audit partner in charge from Eide Bailly CPA's, will be attending the City Council meeting and be available for
any questions of clarifications. Jean Nachtman, Assistant Finance Director and I will also be attending the meeting.
Prepared by:
KT/eml
Enclosures:
Fiscal Year 2012 CAFR
Auditor's Communication with Those Charged with Governance Letter
City Response
COMPREHEf
Financi;
BEE BRANCH CREEK RESORATION 1
SYCAMORE
4, STREET
_ = t
rFir CITY or
Masterpiece on the Mississippi
Iowa
JSIVE ANNUAL
a1 Report
FISCAL YEAR ENDED
JUNE 30, 2012
About the Cover:
The Bee Branch Creek Restoration and Gateway
Project is a flood- mitigation project designed to reduce
the risk of storm water flood damage to 1,155
properties in one of Dubuque's oldest neighborhoods.
This $57 million project began in September 2010 and
is expected to be complete in Fall 2014. The project is
broken down into two phases; Upper Bee Branch and
Lower Bee Branch. The project includes daylighting of
the Bee Branch Creek which was housed in buried
storm sewer for more than a century. In addition to
being a stormwater facility, the project features a
hike /bike trail, additional landscaping, medium -to -high
canopy trees, bushes, planters, light fixtures, water
fountains, benches, an amphitheater, scenic
overlooks, bridges, rain gardens and wetlands, and
other recreational space.
Photo by:
Randy Gehl
Page Layout by:
Kelli Buchenau
Comprehensive Annual Financial Report
June 30, 2012
City of Dubuque, Iowa
Prepared by:
Department of Finance
2
Introductory Section
June 30, 2012
City of Dubuque, Iowa
4
CITY OF DUBUQUE, IOWA
Table of Contents
Exhibit Pase
INTRODUCTORY SECTION
Table of Contents 5 -6
Letter of Transmittal 7 -16
City Organizational Chart 17
Officials 18
Certificate of Achievement for Excellence in Financial Reporting 19
FINANCIAL SECTION
Independent Auditor's Report 23 -24
Management's Discussion and Analysis 25 -35
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Assets 1 38 -39
Statement of Activities 2 40 -41
Fund Financial Statements
Balance Sheet — Governmental Funds 3 42 -43
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Assets 3 -1 44
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds 4 46 -47
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4 -1 48 -49
Statement of Net Assets — Proprietary Funds 5 50 -53
Statement of Revenues, Expenses, and Changes in Fund Net Assets
— Proprietary Funds 6 54 -55
Statement of Cash Flows — Proprietary Funds 7 56 -59
Statement of Fiduciary Assets and Liabilities — Agency Funds 8 60
Notes to Financial Statements 61 -97
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds 100
Note to Required Supplementary Information — Budgetary Reporting 101
Schedule of Funding Progress for the Retiree Benefit Plan 102
Combining Fund Statements
Combining Balance Sheet — Nonmajor Governmental Funds A -1 106 -109
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds A -2 110 -113
Combining Statement of Net Assets — Nonmajor Enterprise Funds B -1 115
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets — Nonmajor Enterprise Funds B -2 116
Combining Statement of Cash Flows — Nonmajor Enterprise Funds B -3 117 -118
Combining Statement of Net Assets — Internal Service Funds C -1 120 -121
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Assets (Deficit) — Internal Service Funds C -2 122 -123
Combining Statement of Cash Flows — Internal Service Funds C -3 124 -125
Combining Statement of Changes in Assets and Liabilities — Agency Funds D -1 127
5
CITY OF DUBUQUE, IOWA
Table of Contents
Table Page
STATISTICAL SECTION (Unaudited)
Statistical Section Contents 131
Financial Trends
Net Assets by Component 1 132 -133
Changes in Net Assets 2 134 -137
Fund Balances of Governmental Funds 3 138 -139
Changes in Fund Balances of Governmental Funds 4 140 -141
Revenue Capacity
Taxable and Assessed Value of Property 5 142
Property Tax Rates — Direct and Overlapping Governments 6 143
Principal Property Taxpayers 7 144
Property Tax Levies and Collections 8 145
Debt Capacity
Ratios of Outstanding Debt by Type 9 146 -147
Ratios of General Bonded Debt Outstanding 10 148
Direct and Overlapping Governmental Activities Debt 11 149
Legal Debt Margin Information 12 150 -151
Revenue Debt Coverage 13 152
Water and Sewer Receipt History 14 153
Water Meters by Rate Class 15 154
Largest Water and Sewer Customers 16 155
Demographic and Economic Information
Demographic and Economic Statistics 17 156
Principal Employers 18 157
Operating Information
Full -Time Equivalent City Government Employees by
Function/Department 19 158 -159
Operating Indicators by Function/Program 20 160 -161
Capital Asset Statistics by Function 21 162 -163
COMPLIANCE SECTION
Report on Internal Control over Financial Reporting and on Compliance
and other Matters Based on an Audit of Financial Statements
Performed in Accordance with GovernmentAuditing Standards
Independent Auditor's 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
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
167 -168
169 -170
171 -176
177
Schedule of Findings and Questioned Costs 178 -182
6
Dubuque
keteg
All-America City
E iiiiir
2012
Masterpiece on the Mississippi
December 19, 2012
Honorable Mayor, City Council Members, and
Citizens of the City of Dubuque
Finance Department
50 West 13t Street
Dubuque, Iowa 52001 -4805
Office (563) 589 -4133
Fax (563) 690 -6689
TTY (563) 690 -6678
finance@cityofdubuque.org
www. cityofdubuque. org
The Comprehensive Annual Financial Report (CAFR) of the City of Dubuque, Iowa, for the fiscal year
ended June 30, 2012, is hereby submitted as required by various state and federal regulations.
Responsibility for both the accuracy of the data and the completeness and fairness of the presentation,
including all disclosures, rests with the City. To the best of our knowledge and belief, the enclosed data is
accurate in all material respects, and is reported in a manner designed to present fairly the financial
position and results of operations of the various funds and activities of the City. All disclosures necessary
to enable the reader to gain an understanding of the City's financial operations have been included.
State code requires an annual audit by independent certified public accountants or the State Auditor. The
accounting firm of Eide Bailly LLP conducted the audit for fiscal year 2012. In addition to meeting the
requirements set forth in state statutes, the audit also was designed to meet the requirements of an annual
single audit in conformity with the U.S. Office of Management and Budget Circular A -133, Audits of
States, Local Governments and Non -Profit Organizations. Information related to this single audit,
including the Schedule of Expenditures of Federal Awards, findings and recommendations, and the
auditor's report on internal control over financial reporting and compliance with requirements applicable
to laws, regulations, contracts, and grants, are included in the Compliance Section of this report. The
independent auditor's report is included in the Financial Section of this report.
This report includes all funds of the City of Dubuque, as well as its component units. Component units
are legally separate entities for which the City of Dubuque is financially accountable. The City provides a
full range of services including police and fire protection, sanitation services, the construction and
maintenance of roads, streets, and infrastructure, inspection and licensing functions, maintenance of
grounds and buildings, municipal airport, library, recreational activities and cultural events. In addition to
general government activities, the municipality owns and operates enterprises for a water system, water
resource and recovery center, storm water system, parking facilities, refuse collection, and public
transportation.
This report includes the Dubuque Metropolitan Area Solid Waste Agency (DMASWA) and Dubuque
Initiatives and Subsidiaries as discretely presented component units. A discretely presented component
unit is reported in a separate column in the government -wide financial statements to emphasize that it is
legally separate from the City of Dubuque and to differentiate its financial position and results of
operations from those of the City. The City of Dubuque appoints a voting majority to the DMASWA
governing board and operates the landfill. Dubuque Initiatives is organized to render service to the City
Council of the City of Dubuque, Iowa on matters of community interest, and in the event of dissolution,
7
any assets or property of the organization are transferred to the City. In 2009, the City of Dubuque
guaranteed debt issued by Dubuque Initiatives and Subsidiaries.
Generally Accepted Accounting Principles (GAAP) require that management provide a narrative
introduction, overview, and analysis to accompany the basic financial statements in the form of
Management's Discussion and Analysis (MD&A). This letter of transmittal is designed to complement
the MD &A and should be read in conjunction with it. The City of Dubuque's MD &A can be found
immediately following the independent auditor's report.
PROFILE OF THE CITY
The City of Dubuque is located on the Mississippi River in northeast Iowa, adjacent to the states of
Illinois and Wisconsin. Julien Dubuque began mining lead in the area now known as Dubuque in 1788.
Dubuque is the oldest city in Iowa and has a unique combination of the old and new, ranging from cable
cars, Victorian architecture, and a Civil War era shot tower, to an enclosed shopping mall, two casinos,
one with a pari- mutuel dog track and the Smithsonian - affiliated National Mississippi River Museum and
Aquarium. The City of Dubuque currently has a land area of 31.8 square miles, and a census 2010
population of 57,637. As the largest city in the tri-state area, Dubuque serves as the hub of a trade area
with a population estimated at 250,000.
Dubuque has a stable and diversified economic base and is the major tri-state retail center. Dubuque
ended the fiscal year with an unemployment rate of approximately 5.2 %, lower than the 5.5% state
unemployment rate and 8.2% national rate. In September 2012, Dubuque County's unemployment rate
was just 3.7 %.
The City of Dubuque is empowered to levy a property tax on real property located within the City limits.
The City has operated under a council- manager form of government since 1920. Policymaking and
legislative authorities are vested in the governing council, which consists of a mayor and a six - member
council. The mayor is elected to a four -year term. The council is elected on a non - partisan basis. Council
members are elected to four -year staggered terms with three council members elected every two years.
Four of the council members are elected within their respective wards; the mayor and the two remaining
council members are elected at large. The governing council is responsible for, among other things,
setting policy, passing ordinances, adopting the budget, appointing committees, and hiring the City
Manager, City Attorney, and City Clerk. The City Manager is responsible for overseeing the day -to -day
operations of the government, making recommendations to the City Council on the budget and other
matters, appointing the heads of the government's departments, and hiring employees.
ECONOMIC CONDITION
Dubuque's housing market did not suffer the severe declines seen nationally and is seeing a more robust
recovery. According to Ruhl and Ruhl Realtors Spring 2012 Real Estate Facts and Trends, sales volume
in Dubuque was up 40% in the first quarter of 2012 as compared to the same quarter in 2011. According
to the Federal Housing Finance Agency, Dubuque housing prices increased an average of 6.7% over the
last 5 years, while national prices decreased 19.16% over the same period.
Dubuque has completely recovered its recession job losses, and the US Conference of Mayors recognized
Dubuque as one of only 26 out of 363 metro areas to have accomplished this. Iowa Workforce
Development ranked the City as #1 in the State for private sector job growth in 2011. With just 3% of the
State's population, Dubuque created 12% (1,100 net new jobs) in 2011 and 11.2% (1,200 net new jobs) in
2010 of the State total.
8
A 2011 UC- Berkley study ranked Dubuque 5th out of 361 cities nationwide in a 2011 study of resiliency
capacity that evaluates a community's economic capacity to bounce back from adversity, strength of
demographics, and community connectivity (August 2011).
Dubuque has a diverse employer base including manufacturing, software, health services, insurance,
education and government. The top 10 employers in the area employ less than 20% of the total
workforce. This insulates the City from the negative impact on a downturn in any one area of the
economy.
The City's continual development in its industrial parks, has attracted new industries, but just as
importantly retained existing businesses.
Dubuque Industrial Center West (DICW)
In 1997, the City acquired five farms creating approximately 550 saleable acres in Dubuque Industrial
Center West. The City saw unprecedented growth, selling over 125 acres in less than three years. Over
251 acres have been sold and 24 businesses have located in the DICW, which include 21 local business
expansions and 3 new industries. In the summer of 2012, the City began grading the last of these five
farms. The City is working with Greater Dubuque Development Corporation to begin evaluating sites
for future industrial areas. 2012 business expansions in the DICW are Green Industrial Supply for $8.5
million, FedEx 80,000 square foot distribution building at $2.5 million and TM Logistics for $1 million.
The Dubuque Technology Park
Located on the south side of the City a 130 -acre park designed to accommodate growing office
businesses. Eight businesses have located in the park. Sedgwick CMS has expanded their current leased
facility and has created 160 new jobs in 2011.
Downtown continues a robust development that includes over $100 million spent in recent years for
building construction, renovation and public improvement. Over 9,000 people work in the downtown
area. Thirteen hundred IBM employees work on five renovated floors of the nine story Roshek Building.
Heartland Financial is relocating some of its existing staff to the third floor in October 2012, and has
committed to creating 50 new jobs in the next year. Two restaurants, gift shop and spa occupy the first
floor. The Roshek Building was purchased in 2009 by the Dubuque Initiatives and underwent over $43
million in renovations.
The IBM project has created a high demand for rental housing, as many of these new employees are
recent college graduates and IBM transfers. In addition to the Historic Millwork District revitalization, the
City is actively working with developers to expedite additional downtown housing rehabilitation projects
in order to fill the critical housing need created by IBM. A 42 -unit apartment project has been completed
at 40 -42 Main Street. The completion of Cathedral Square added 24 units to the market in October 2010.
The upper three stories of the former Bricktown building have been renovated into 24 residential units
that became available in early 2011. There are several other scattered upper story redevelopments that are
or will soon be available for market rate residential rental. A renovation of Franklin School with 21
residential units nears completion. Nearly 200 new residential units have been put into the downtown
market in the past 3 years. All are filled and there are waiting lists at each project site.
The City Council approved a Revitalization Strategy for Dubuque's Historic Millwork District in August
2007. A master plan for the redevelopment of the district was approved by the Council in February 2009.
The strategy defines six primary goals to be achieved in rehabilitating the area. The revitalization is
expected to amount to $200 million in investment from private and public sectors over the ten years.
Planning has been completed for the infrastructure and parking needs anticipated by the redevelopment of
these large brick structures for mixed -use purposes.
The CARADCO Building, a $28 million private renovation project in the Millwork District, received two
awards of $3 million and $5.9 million in CDBG funds to develop workforce housing. The 72 -unit
9
residential project was completed in September 2012. A food co -op is planned for part of the first floor.
Nonprofits will use the basement space.
Dubuque was awarded a $5.6 million USDOT TIGER grant in early 2010 to fund a Complete Streets
project within the Historic Millwork District. This project was initiated in March 2011 and was completed
in May 2012. US Transportation Secretary Ray LaHood was present for the ribbon cutting on the project
and the project has already received several awards.
West End residential construction includes construction of a 60 -unit senior housing apartment building by
3 Diamond Development; Kluck Construction is in the early stages beginning construction of a new 24-
unit market rate apartment building in addition to the first 24- unit building completed in 2011; and GTW
Pennsylvania Inc. has begun work on the fifth 18 -unit market rate two- bedroom apartments near the
Dubuque Industrial Center West. Callahan Construction has finished construction of an 18 -unit
apartment complex on Commerce Park and Portzen Construction has begun construction of 48 Wyngate
Townhomes on Wyngate Drive. Callahan Construction has also begun construction of a new 12 -plex
apartment building on Commerce Park.
Commercial development continues with almost 10,000 square foot addition to Finnin Ford dealership,
completion of the 69,000 square foot addition to IWI Motor Parts building, an addition to A. Y.
McDonald Company on Chavenelle Drive, and the construction of a new Sedona office building at
Holliday Drive.
Development at the Port of Dubuque continues with construction completed in August 2012 on the $9
million new world corporate headquarters of Flexsteel Industries. This project joins the already completed
developments in the Port of Dubuque including the McGraw -Hill Higher Education office building,
renovation of the City -owned Dubuque Star Brewery by a private developer for office, restaurant, and
retail use, a new City parking ramp, the expansion of the National Mississippi River Museum and the $86
million Diamond Jo Casino entertainment center. This fall the City will be completing the $4 million the
Port of Dubuque Marina Project, located in the Ice Harbor. Funding of $3 million was received from
Iowa Department of Natural Resources through the U.S. Fish and Wildlife Service Boating Infrastructure
(Tier 2) Grant program.
Construction and selling lots continues for four residential subdivisions — Pebble Cove #1 and #2
located near the Northwest Arterial provides 46 new building lots for single and two - family homes.
Construction of homes is currently underway. English Ridge Subdivision located east of the
intersection of U.S. 20 and Stone Valley Drive created 45 single - family lots in the first phase and an
additional 21 building lots in Phase 2. North Fork Trails located at the extension of Keymont Drive
continues to sell building lots for two -unit townhomes, and Westbrook Subdivision on the city's far
west side is nearing completion of its second phase of single - family home lots. Liberty Subdivision is
finishing construction of 15 new building lots on the city's north end. The City has received plans for
two new subdivisions — North Ridge Estates off of Peru Road with 38 building lots and Sky Blue
Estates off of Roosevelt Road with 25 building lots are going through preliminary plat review at this
time.
Community investment in education includes the University of Dubuque's $30 million Performing Arts
and Campus Center scheduled to be completed in 2013. The 80,000 square foot, architecturally dramatic
center, located at the corner of Grace, Bennett, and McCormick Streets on the University campus, will be
comprised of a main performance hall seating close to 1,000, faculty offices, student music practice
rooms, a black box theater, a student cafe seating 150, a college store, together with enhanced space for
student life as well as facilities to support fine and performing arts. The University announced plans to
construct three additional residence halls that will house 494 students by fall of 2014 and a new
intramural /practice facility. Construction will begin October 2012 on Clarke University's $13 million
46,000 square foot three story science center. The facility will have flexible, modern spaces to integrate
10
lecture and lab spaces, and foster a collaborative, hands -on learning environment. The first of four phases
of the Loras College $4 million Parkway is scheduled for completion November 2012. Phase I included
paving and creation of the parkway, lighting and landscaping. Phase II and III involve moving the
College's existing physical plant and constructing a visitor center on the site. Phase IV is to create a
retail, dining and hang out site. The dining venue could be a national chain. The completed parkway will
also include a veterans' memorial, fountain, benches and three outdoor performing spaces that will be
available to the community for festivals and other events. Completion of the entire parkway is expected in
the next couple years.
Dubuque Community School district is currently renovating Dubuque Senior High School's Dalzell Field
at a cost of $10 million and Hempstead High School's auditorium for $25 million. The Kennedy
elementary school is undergoing a $5 million renovation.
The City's two hospitals are both adding new care units. Finley Hospital's new $1.9 million Cardiac
Catheterization Laboratory is scheduled to open in 2013 and Mercy Hospital's new $14 million Intensive
Care and Cardiovascular units opened August 2012. Finley Hospital has also submitted information
related to an 80,000 sq ft addition.
The Dubuque Ice and Recreation Center (DICE) group and four partner organizations completed an $8
million, 3,000 -seat Mystique Community Ice Center on Schmitt Island for the Dubuque Fighting Saints,
(youth United States Hockey League Tier 1) and community ice events. The team won the Clark Cup in
the 2010 -2011 season.
The City continues to receive awards and recognition from a variety of sources including:
• Dubuque was ranked #4 among Overall Metros with the Biggest Average Annual Increases in
Wages and Salaries in 2012's "America's Best Places for a Raise." (September 2012)
• The America's Promise Alliance named Dubuque one of its 100 Best Places for Young People for
2012. Dubuque received this distinction in 2007, 2008, 2010, and 2011. (September 2012)
• Dubuque was named a 2012 All- America City by the National Civic League for a community
initiative to improve grade -level reading. This is the second time in five years Dubuque received
this recognition. (July 2012)
• Area Development magazine's 2012 Leading Locations report ranked Dubuque in five categories:
#16 among the Top 100 Overall Cities, #3 among the Top 20 Midwest Cities, #7 among the Top 50
Small Cities, #6 among the Top 25 Small Cities in Economic Strength Factors, and #8 among the
Top 25 Small Cities in "Recession Busting" Factors. (June 2012)
• Dubuque was ranked 7th in the nation in Forbes' annual "Best Small Places" (August 2011)
• Moody's /Economy.com ranked Dubuque 9th among 392 largest U.S. cities for "Employment
Growth" based on 2010 -2012 (July 2011)
• Dubuque was awarded the 2010 Award for Outstanding Leadership & Innovation as part of the
Governor's Iowa Environmental Excellence Awards (July 2011)
• Dubuque was #1 in Iowa for Private Sector Job Growth in 2010 according to data from Iowa
Workforce Development. 1,800 net new jobs were created in 2010, 12% of the state total. (February
2011)
• Connected World magazine named Dubuque one of the "Seven Most - Connected Locals" in the
United States (December 2010)
• Fast Company named Dubuque one of the 10 "Smartest Cities on the Planet" (December 2010)
• Dubuque placed 3`d and was named a Gold Community at the 2010 International Awards for
Livable Communities (LivCOM) (November 2010)
• Forbes named Dubuque the "Best Small City to Raise a Family" for 2010 (October 2010)
• Forbes ranked Dubuque 1st in the national among mid -sized cities for projected job growth (April
2010)
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• Dubuque received the International Economic Development Council's 2010 "Excellence in
Economic Development Award" in the category of Public /Private Partnership for communities
with populations of 25 thousand to 200 thousand for the historic redevelopment of the Roshek
Building
• The Iowa League of Cities named Dubuque its 2010 All -Star Community for the Sustainable
Dubuque initiative
• Dubuque was ranked 15th in the nation in Forbes magazine's annual "Best Small Places for
Business and Careers" (September 2010)
MAJOR INITIATIVES
For the Year. The City of Dubuque staff, following the adopted priorities of the Mayor and City Council,
has been involved in a variety of projects throughout the year. These projects reflect the City's
commitment to continue to provide high quality services to the citizens of Dubuque within the budget
guidelines set by the Mayor and City Council.
The Dubuque Regional Airport began the sitework for the New Terminal Facility and continues the
design phase in an effort to meet current and forecasted passenger demand for Dubuque and the
surrounding communities. Working with the Federal Aviation Administration (FAA), bids for the New
Terminal Building construction were received in September 2012. The Dubuque Regional Airport
received its 22vd consecutive year of perfect compliance with Federal Aviation Regulation (FAR) Part
139. FAR Part 139 governs safety standards for airfield operations, safety, and maintenance at airports
served by commercial airlines.
At the request of FAA, the various design phases associated with the development of the new Passenger
Terminal Facility (site work & building - related) that were programmed throughout the project have been
moving forward. It is expected that approximately 90% of the project costs will be funded by Airport
Improvement Program grants issued through the Federal Aviation Administration. Other funds through
the state and locally generated passenger facility charges continue to be banked for this project.
The Dubuque Regional Airport was awarded a $164,000 IDOT Air Service Enhancement Grant to assist
with start up costs of the 4th American Airlines flight through Chicago O'Hare that began in April 2011.
The City continues to implement components of the Drainage Basin Master Plan. The Northwest Arterial
Detention Basin Project, the North Fork Catfish Creek Improvements Project, the Carter Road Detention
Basin Project and the W. 32nd Street Detention Basin Project are complete. In the fall of 2011,
construction of the first phase of the $58 million Bee Branch Creek Restoration and Gateway Project was
completed.
The Bee Branch Creek Restoration project, which will protect more than 1,100 properties currently at
risk of flood damage during heavy rains, involves the construction of a 4,500 -foot long open waterway
from the 16th Street Detention Basin to Comiskey Park. The project required the acquisition of 79
residential and 21 commercial structures. Construction of the first phase, completed in the fall of 2011,
involved the excavation and handling of approximately 265,000 cubic yards of soil. It also included the
dredging of the 16th Street Detention Basin, the construction of two bridges, the reconstruction of the
Couler Valley sanitary sewer interceptor, and water main improvements along 14th Street and along 16th
Street. Construction of the next phase of the project is scheduled to begin in early 2013 -2014. The entire
$58 million Bee Branch Creek Restoration Project is scheduled to be complete in the spring of 2015. In
the fall of 2010, the City was awarded a $3.96 million I -JOBS grant from the State of Iowa for the
project. In March of 2011 the City was awarded a $2.25 million Vision Iowa RECAT grant and a
forgivable loan in the amount of $4.4 million through the State Revolving Loan Fund Program
administered by the Iowa Department of Natural Resources. In the fall of 2011, the Federal Highway
Administration awarded a $1 million grant for the project. And finally, a $100,000 grant was awarded
12
through the State Recreational Trail grant program. The City was also able to raise $120,000 for the
project as part of the America's River III fundraising campaign. The City will also be applying for a
portion of the new $300 million State of Iowa program to fund flood protection projects. The remainder
of the project will be funded using general obligation bonds and state revolving loan funds to be repaid
with revenue generated through the City's monthly storm water utility fee. The project serves as a storm
water facility and also a regional park and recreation attraction for citizens and visitors.
In June of 2012 the City of Dubuque was approved by the Iowa Department of Natural Resources to use
$9.4 million in State Revolving Fund (SRF) funds toward the reconstruction of green alleys in the Bee
Branch Drainage Basin. The funds will be used to reconstruct over 40 alleys using permeable pavers. The
permeable pavers infiltrate stormwater which reduces the sediment load and stormwater that enters the
City's stormwater system. The alleys will be reconstructed over a three year period beginning in 2012.
Beginning in 2006, the Dubuque City Council identified becoming a more sustainable city as one of its
top priorities. Since then, many initiatives have been underway to make Dubuque a more sustainable
community. The City continues to implement projects that will help it achieve the Council's goal. These
include adoption of the Unified Development Code, establishment of a City Green Team, holding the
annual Growing Sustainable Communities Conference, completion of a Green House Gas Inventory for
City operations and facilities and a variety of neighborhood -based green initiatives. The Iowa League of
Cities named Dubuque as an All -Star Community in the Sustainability category in both 2010 and 2011.
Smarter Sustainable Dubuque is a unique public /private partnership between the City of Dubuque and
IBM Research, the division of IBM responsible for its "Smarter Planet" campaign. The project was
initiated in September 2009 when the City of Dubuque and IBM announced their intentions to make
Dubuque one of the first "smarter" sustainable cities in the U.S. Plans include the development of new
smarter technologies and implementation strategies to create a replicable, international model of
sustainability for communities of 200,000 and under, where over 40 percent of the U.S. population
resides. The model will integrate community engagement and education, more energy- efficient ways of
operating municipal services and buildings, decreased carbon emissions, new job creation, increased
financial savings, and a higher quality of life for the entire community. Smarter Sustainable Dubuque will
provide Dubuque residents the information and tools they need to make smarter choices about resource
consumption. The initiative is engaging Dubuque residents and businesses who, through advanced
technology, will be able to voluntarily better manage their use of resources in the areas of water,
electricity, travel, and natural gas. Individual wellness is also being considered as a component. Pilot
studies involving more than 1,200 volunteer households were recently completed or are still underway to
provide participants with personalized data on their water and electricity usage as well as travel habits.
A groundbreaking ceremony was held in October 2010 for a major renovation of the City's water
pollution control plant (WPCP), renamed the Water and Resources Recovery Center (W &RRC).
Construction of the new W &RRC facilities requires four major components: four anaerobic digesters
(each approximately 70 feet in diameter and 30 feet tall) and a central control building; conversion from
chlorine disinfection to ultra violet light; modification of existing structures for flow equalization; and
overall upgrades and repairs. A small structure will also be constructed off -site to temporarily store bio-
solids before they are transported to an off -site storage facility and ultimately applied to agricultural land.
The project is estimated to cost $64 million and is expected to be completed by December 2013. The
project is being funded by state revolving loan funds repaid with sanitary sewer user fees.
The City of Dubuque's Parking Division opened the new 477 - space, seven -level ramp at 10th Street and
Central Avenue in the summer of 2011. The project also includes the addition of three truck bays to the
adjacent Fire Department headquarters. The ramp was funded with a $1.5 million grant from the U.S.
Department of Commerce Economic Development Administration and the sale of urban renewal general
obligation bonds to be repaid with tax increment financing receipts.
13
The City's Lead Paint and Healthy Homes Programs, administered through the Housing and Health
Departments, are partnering with the Community Foundation of Greater Dubuque in Green and Healthy
Homes Initiative. Dubuque's GHHI Program was selected as one of the 16 sites nationally to participate
in this initiative, sponsored by the Coalition to End Childhood Lead Poisoning. The goal of the initiative
is both to reduce health hazards in home living environments and to transform lives though lifting
families out of the cycle of poverty and socio - cultural impoverishment. This is achieved through a multi -
department and agency service delivery system, providing hazard mitigation, assessment and referral
services in a household- centric approach that eliminates duplication and focuses resources cost -
efficiently.
For the Future. The Mayor and City Council will continue to take action to achieve their goals of
maintaining a strong local economy, sustaining stable property tax levies, and enhancing the safety and
security of citizens through neighborhood vitality. The City staff will work to implement the City
Council's vision that Dubuque is a "Masterpiece on the Mississippi." A program of comprehensive
service reviews has continued as a vehicle for analyzing City services, identifying opportunities for
improvement, and determining areas of possible cost reductions. The goal of the service review program
is to ensure that services desired by the citizens are provided in the most cost effective and efficient
method possible. The City Council's goals for the next five years and beyond include the following:
• Planned and Managed Growth
• Partnering for a Better Dubuque
• Improved Connectivity: Transportation and Communications
• Economic Prosperity
• Social /Cultural Vibrancy
• Environmental Integrity
FINANCIAL INFORMATION
Internal Controls. City management is responsible for establishing and maintaining internal controls to
ensure that the assets of the government are protected from loss, theft, or misuse, and to ensure that
adequate accounting data is compiled to allow for the preparation of financial statements in conformity
with generally accepted accounting principles. The internal controls are designed to provide reasonable,
but not absolute, assurance that these objectives are met. The concept of reasonable assurance recognizes
that: (1) the cost of a control should not exceed the benefits likely to be derived; and (2) the valuation of
costs and benefits requires estimates and judgments by management.
Single Audit. As a recipient of federal and state financial assistance, the City of Dubuque's government
is responsible for ensuring that adequate internal controls are in place to ensure compliance with
applicable laws, regulations, contracts, and grants related to those programs. These internal controls are
subject to periodic evaluation by management.
As a part of the City's single audit described earlier, tests are made to determine the adequacy of internal
controls, including that portion related to federal programs, as well as to determine that the government
has complied with applicable laws, regulations, contracts, and grants. The results of the government's
single audit for the fiscal year ended June 30, 2012, provided no instances of material weaknesses in
internal control over compliance, or significant violations of applicable laws, regulations, contracts, and
grants. Additional information is provided in the Schedule of Findings and Questioned Costs.
Budgeting Controls. In addition, the government maintains budgetary controls. The objective of these
budgetary controls is to ensure compliance with legal provisions embodied in the annual appropriated
14
budget approved by the City Council. All funds, except for fiduciary fund types which include pension
trust funds, private purpose trust funds and agency funds are included in the annual budget process. The
level of budgetary control (that is the level at which expenditures cannot legally exceed the appropriated
amount) is established by state programs. The government also maintains an encumbrance accounting
system as one technique for accomplishing budgetary control. Encumbered amounts lapse at year -end,
however, encumbrances generally are re- appropriated as part of the following year's budget.
As demonstrated by the statements and schedules included in the financial section of this report, the City
continues to meet its responsibility for sound financial management.
Cash Management. Cash temporarily idle during the year was invested in demand deposits, certificates
of deposit, federal agency obligations, and authorized mutual funds. The City (including DMASWA)
received cash basis investment earnings of $819,873 for the year.
The investment policy adopted by the City Council stresses the importance of capital preservation. The
policy directives intend to minimize credit and market risks while maintaining a competitive yield on the
portfolio.
Risk Management. The City of Dubuque is a member of a statewide risk pool for local governments, the
Iowa Communities Assurance Pool (ICAP). The coverage for general and auto liability, as well as public
official and police professional liability are acquired through this pool. Worker's compensation coverage
up to $500,000 for each accident is provided through self - insurance. The accumulated reserve provision
for such claims reflected a $1,032,728 deficit as of June 30, 2012. Provision for a large number of claims
were accrued at fiscal year -end with funds to cover payment available in next fiscal year. The City has
also established a self - insurance plan for medical, prescription drug, and short-term disability. The
accumulated reserve provision for such claims equaled $1,750,533 as of June 30, 2012. All self - insured
health plans are certified as actuarially sound and certificates of compliance have been filed with the State
of Iowa.
Bond Rating. Moody's Investor Service reaffimed the City's Aal rate on the Series 2012 A, B, C, D,
E, F G, H and I which reflects the City's role as dominant regional service and retail provider in northeast
Iowa; satisfactory reserves enhanced by revenue raising flexibility; and a manageable debt position given
the support of non -levy revenue sources that offset annual debt service payments.
The rating for the City's outstanding water revenue bonded debt was downgraded by Moody's Investors
Service to Aa3 from a previous rating of Aa2 in June 2012, which affected $6.8 million in outstanding
water debt secured solely by the net revenues from the City's water utility. This downgrade applies to less
than three percent of Dubuque's total city indebtedness ($228.9 million) and seven percent of the City's
rated indebtedness. Moody's cited the decreasing senior lien debt service coverage in recent years due to
increasing debt service as the reason for the downgrade. Even though the City of Dubuque has been
downgraded by Moody's to Aa3 from Aa2 on the water revenue bonds, there is no financial impact to the
City. The interest rates on the bonds will remain the same.
Moody's provides credit ratings and research covering debt instruments and securities. The purpose of
Moody's ratings is to provide investors with a simple system to gauge future relative creditworthiness of
securities. The firm uses nine rating classifications to designate least credit risk to greatest credit risk:
Aaa, Aa, A, Baa, Ba, B, Caa, Ca, and C. Moody's appends numerical modifiers 1, 2, and 3 to each rating
classification.
15
AWARDS AND ACKNOWLEDGEMENTS
Awards. The Government Finance Officers Association of the United States and Canada (GFOA)
awarded a Certificate of Achievement for Excellence in Financial Reporting to the City of Dubuque,
Iowa, for its Comprehensive Annual Financial Report for the fiscal year ended June 30, 2011. This was
the 24th consecutive year that the City has achieved this prestigious award. In order to be awarded a
Certificate of Achievement, a government unit must publish an easily readable and efficiently organized
comprehensive annual financial report. This report must satisfy both generally accepted accounting
principles and applicable legal requirements.
A Certificate of Achievement is valid for a period of one year only. We believe our current
comprehensive annual financial report continues to meet the Certificate of Achievement program
requirements, and we are submitting it to the GFOA to determine its eligibility for another certificate.
GFOA also awarded a Certificate of Recognition for Budget Preparation to the City of Dubuque, Iowa,
for its annual budget for the fiscal year ended June 30, 2012. In addition, we received the award for the
fiscal year ending June 30, 2013. In order to receive this award, a governmental unit must publish a
budget document that meets program criteria as a policy document, as an operations guide, as a financial
plan and as a communications device. This was the 7th consecutive year that the City has achieved this
prestigious award. This award is valid for a period of one year.
The City of Dubuque submitted its investment policy to the Association of Public Treasurers of the
United States and Canada for review and recertification during fiscal year ended June 30, 2009. The City
was awarded the Certification of Excellence in July 2009. The investment policy is normally reviewed
every five years.
Acknowledgments. The preparation of this report could not be accomplished without the efficient and
dedicated services of the entire Finance Department staff. We also thank the Mayor and City Council for
their interest and support in planning and conducting the financial operations of the City of Dubuque in a
responsible and progressive manner. We also thank the independent certified public accountants, Eide
Bailly LLP, whose competent assistance and technical expertise have enabled the production of this
report.
Sincerely,
i7zAilta (t<tn.t_iik, G.244A-t
Michael C. Van Milligen Kenneth J. TeKippe, CPA
City Manager Finance Director
16
CITY OF DUBUQUE ORGANIZATIONAL CHART
Citizens
Library
City Attorney
Assistant City Manager (2)
Personnel Manager
Sustainable Communi
Coordinator
Budget Director
City Clerk
City Manager
Airport
Public Information Officer
Geographic
Dammation
Systems
Cable TV
Assistant Budget
Director
Neighborhood
Development Specialist
Arts Coordinato
Building
Services
Department
♦ r l
Economic
Development
Department
l
Parking Division
Transit Division
♦ e
Eme gency
Communications
Department
Finance
Department
He Ith
Services
Depa tmen
l
l
Housing &
Community
Development
l l
Human
Rights
Department
I J
Training &
Workforce
Development
Human Relations
Coordinator
r l
Information
Service
Department
Leisure
Services
Department
l
Multicultural
Famil Center
Public Works
Department
l
Planning
Services
Department
♦ r
l
Police
Department
J \
17
Engineering
Department
Water
Department
J
Water &
Resource
Recovery Center
l
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2012
CITY COUNCIL
Roy D. Buol
Richard W. Jones
David T. Resnick
Kevin J. Lynch
Karla A. Braig
Joyce E. Connors
Lynn V. Sutton
COUNCIL APPOINTED OFFICIALS
Michael C. Van Milligen
Barry A. Lindahl
Crenna M. Brumwell -Sahm
Maureen A. Quann
Kevin S. Firnstahl
DEPARTMENT MANAGERS
Robert A. Grierson
Therese H. Goodmann
Cynthia M. Steinhauser
Jenny M. Larson
Richard R. Russell
David J. Heiar
Kenneth J. TeKippe
E. Daniel Brown
Mary Rose Corrigan
Alvin L. Nash
Kelly R. Larson
Randall K. Peck
Christine A. Kohlmann
Marie L. Ware
Susan A. Henricks
Donald J. Vogt
Laura B. Carstens
Mark M. Dalsing
Gus N. Psihoyos
Robert M. Green
Jonathan R. Brown
Mayor
Council Member — At Large
Council Member — At Large
Council Member — 14 Ward
Council Member — 2nd Ward
Council Member — 3`d Ward
Council Member — 4`" Ward
City Manager
City Attorney
Assistant City Attorney
Assistant City Attorney
City Clerk
Airport Manager
Assistant City Manager
Assistant City Manager
Budget Director
Building Services Manager
Economic Development Director
Finance Director
Fire Chief
Health Services Manager
Housing and Community Development Manager
Human Rights Director
Personnel Manager
Information Services Manager
Leisure Services Manager
Library Director
Public Works Director
Planning Services Manager
Police Chief
Public Works Director
Water Department Manager
Water & Resource Recovery Manager
18
Certificate of
Achievement
for Excellence
in Financial
Reporting
Presented to
City of Dubuque
Iowa
For its Comprehensive Annual
Financial Report
for the Fiscal Year Ended
June 30, 2011
A Certificate of Achievement for Excellence in Financial
Reporting is presented by the Government Finance Officers
Association of the United States and Canada to
government units and public employee retirement
systems whose comprehensive annual financial
reports (CAFRs) achieve the highest
standards in government accounting
and fmancial reporting.
Executive Director
19
20
Financial Section
June 30, 2012
City of Dubuque, Iowa
21
22
EideBailly
CPAs Cu BUSINESS ADVISORS
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,
2012, which collectively comprise the City's basic financial statements as listed in the table of contents.
These financial statements are the responsibility of the management of the City of Dubuque, Iowa. Our
responsibility is to express opinions on these financial statements based on our audit. We did not audit the
financial statements of Dubuque Initiatives and Subsidiaries (a discretely presented component unit),
which represents 79 percent, 71 percent, and 74 percent, respectively of the assets, net assets, and
revenues of the aggregate discretely presented component units. Those financial statements were audited
by other auditors whose report thereon has been furnished to us, and our opinion, insofar as it relates to
the amounts included for Dubuque Initiatives and Subsidiaries, is based on the report of the other
auditors.
We conducted our audit in accordance with auditing standards generally accepted in the United States of
America and the standards applicable to financial audits contained in Government 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 significant estimates made by
management, as well as evaluating the overall financial statement presentation. We believe that our audit
and the report of other auditors provide a reasonable basis for our opinions.
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
previously 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, 2012,
and the respective changes in financial position and, where applicable, cash flows thereof for the year
then ended in conformity with accounting principles generally accepted in the United States of America.
www.eidebailly.com
23
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE
In accordance with Government Auditing Standards, we have also issued our report dated December 18,
2012, 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 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.
Accounting principles generally accepted in the United States of America require that the Management's
Discussion and Analysis, Budgetary Comparison Information, and the Schedule of Funding Progress for
the Retiree Benefit Plan, as listed in the table of contents, be presented to supplement the basic financial
statements. Such information, although not a part of the basic financial statements, is required by the
Governmental Accounting Standards Board, who considers it to be an essential part of financial reporting
for placing the basic financial statements in an appropriate operational, economic, or historical context.
We have applied certain limited procedures to the required supplementary information in accordance with
auditing standards generally accepted in the United States of America, which consisted of inquiries of
management regarding the methods of preparing the information and comparing the information for
consistency with management's responses to our inquiries, the basic financial statements, and other
knowledge we obtained during our audit of the basic financial statements. We do not express an opinion
or provide any assurance on the information because the limited procedures do not provide us with
sufficient evidence to express an opinion or provide any assurance.
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City's financial statements as a whole. The introductory section, combining nonmajor fund
financial statements, and statistical section, are presented for purposes of additional analysis and are not a
required part of the financial statements. The accompanying Schedule of Expenditures of Federal Awards
is presented for purposes of additional analysis as required by U.S. Office of Management and Budget
Circular A -133, Audits of States, Local Governments, and Non - Profit Organizations, and is also not a
required part of the financial statements. The combining nonmajor fund financial statements and the
Schedule of Expenditures of Federal Awards are the responsibility of management and were derived from
and relate directly to the underlying accounting and other records used to prepare the financial statements.
The information has been subjected to the auditing procedures applied in the audit of the financial
statements and certain additional procedures, including comparing and reconciling such information
directly to the underlying accounting and other records used to prepare the financial statements or to the
financial statements themselves, and other additional procedures in accordance with auditing standards
generally accepted in the United States of America. In our opinion, the information is fairly stated in all
material respects in relation to the financial statements as a whole. The introductory and statistical
sections have not been subjected to the auditing procedures applied in the audit of the basic financial
statements, and accordingly, we do not express an opinion or provide any assurance on them.
e-,e,-,, 2 , rs
Dubuque, Iowa
December 18, 2012
24
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
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, 2012. 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
$501,055,013 (net assets). This was an increase of $14,267,879 over net assets at June 30, 2011,
primarily due to additions in buildings and infrastructure.
• Unrestricted net assets for governmental activities are negative $16,876,991 due to TIF debt for
the Port of Dubuque parking facility residing in governmental activities.
• The expenditures of the general fund exceeded revenues by $2,806,995.
• The ending general fund balance was $20,534,178.
• Within the City's business -type activities, revenues exceeded expenses and transfers by
$5,337,061.
• For the year, the revenues of the City's governmental activities exceeded expenses and transfers
by $8,930,818.
• The City's debt increased by $60,351,700 due to issuance of new debt exceeding principal
payments.
OVERVIEW OF THE FINANCIAL STATEMENTS
The City's basic financial statements consist of government -wide financial statements, fund financial
statements, and notes to the financial statements. This discussion and analysis is intended to serve as an
introduction to the basic financial statements. This report also contains other supplementary information
in addition to the basic financial statements themselves.
Government -wide Financial Statements
The government -wide financial statements are designed to provide readers with a broad overview of the
City's finances, in a manner similar to private- sector business. The paragraphs below provide a brief
description of the government -wide financial statements.
The statement of net assets presents information on all of the City's assets and liabilities, with the
difference between the two reported as net assets. Over time, increases or decreases in net assets may
serve as a useful indicator of whether the financial position of the City is improving or deteriorating. To
assess the overall health of the City, you need to 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.
25
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
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, salt, parking, transit and the America's
River Project.
Fund Financial Statements
A fund is a group of related accounts that is used to maintain control over resources that have been
segregated for specific activities or objectives. The City uses fund accounting to ensure and demonstrate
compliance with legal requirements for financial transactions and reporting. All of the funds of the City
can be divided into three categories: governmental funds, proprietary funds, and fiduciary funds.
Governmental funds. Governmental funds are used to account for essentially the same functions reported
as governmental activities in the government -wide financial statements. However, unlike the government -
wide financial statements, governmental fund financial statements focus on near -term inflows and
outflows of spendable resources, as well as on balances of spendable resources available at the end of the
fiscal year. Such information may be useful in evaluating a government's near -term financial
requirements.
Because the focus of governmental funds is narrower than that of the government -wide financial
statements, it is useful to compare the information presented for governmental funds with similar
information presented for governmental activities in the government -wide financial statements. By doing
so, readers may better understand the long -term impact of the City's near -term financial decisions. Both
the governmental fund balance sheet and governmental fund statement of revenues, expenditures, and
changes in fund balances are followed by a reconciliation to facilitate this comparison between
governmental funds and governmental activities.
26
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
The City maintains six 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, salt, and America's River Project. Internal service funds are
accounting devices used to accumulate and allocate costs internally among the City's various functions.
The City uses internal service funds to account for its engineering services, garage services,
stores /printing, health insurance, and workers' compensation. The City's internal service funds
predominately benefit the governmental activities and have been included in the governmental activities
in the government -wide financial statements.
Fiduciary funds. Fiduciary funds are used to account for resources held for the benefit of parties outside
the government. Fiduciary funds are not reflected in the government -wide financial statements because
the resources of those funds are not available to support the City's own programs. The accounting used
for fiduciary funds is much like that used for proprietary funds. The City has two fiduciary funds, an
agency fund reporting resources held for the Dubuque Racing Association for improvements at the
greyhound racing facility and an agency fund used for reporting resources from Mediacom for purchasing
equipment relevant to public, educational, and governmental (PEG) access broadcasting.
Notes to the financial statements. The notes provide additional information that is essential to a full
understanding of the data provided in the government -wide and fund financial statements.
Required supplementary information. In addition to the basic financial statements and accompanying
notes, this report also presents certain required supplementary information concerning the budget and
actual results of the City and the funding progress for the retiree benefit plan.
Other information. The combining statements referred to earlier in connection with non -major
governmental funds, non -major enterprise funds, and internal service funds, as well as an individual
agency fund statement, are presented immediately following the required supplementary information.
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
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 $501,055,013 at
the close of the most recent fiscal year.
The largest part of the City's net assets (95.8 %) 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
Govemmental Activities
Business -type Activities Total
2012 2011
2012 2011
2012
Current and other assets $ 103,424,724
Capital assets 373,651,594
Total assets 477,076,318
$ 81,209,017
357,667,559
438,876,576
$ 27,940,257
227,670,280
255,610,537
$ 23,201,501
194,460,412
217,661 ,913
Long -term liabilities 84,275,424 62,478,404 100,869,706 68,252,575
Other liabilities 30,435,103 28,135,109 10,879,699 10,885,267
Total liabilities 111,749,405 79,137,842 226,459 ,932 169,751,355
$ 131,364,981 $
601,321,874
732,686,855
2011
104,410,518
552,127,971
656,538,489
185,145,130 130,730,979
41,314,802 39,020,376
Net assets:
Invested in capital assets,
net of related debt
Restricted
Unrestricted
Total net assets
114,710,527 90,613,513
347,890,769
26,180,100
(16,876 ,988)
$ 357,193,881
329,416,245
23,738,199
(4,891,381)
$ 348,263,063
28
132,237,734
957,802
10,665,596
$ 143,861,132
135,026,753
893,519
2,603,799
$ 138,524,071
480,128,503
27,137 ,902
(6,211,392)
$ 501,055,013
464,442,998
24,631,718
(2,287,582)
$ 486,787,134
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
A portion of the City's net assets (5.4 %) represents resources that are subject to external restrictions on
how they may be used.
At the close of fiscal year 2012 the City has negative total unrestricted net assets. For fiscal year 2012,
the City is able to report positive balances in total net assets, both for the government as a whole and
business -type activity. The 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.
Governmental activities. The Governmental activities increased in the net assets by $8,930,818 in
2012, primarily due to infrastructure added as part of the airport expansion, Bee Branch bridges and
projects in the Millwork district. Taxes are the largest source of governmental revenues with property
taxes of $30,816,614 in 2012. Other governmental revenues included gaming of $8,785,453, local option
sales taxes of $8,459,888 and $13,288,852 of charges for services. Governmental expenses during 2012
totaled $94,367,471. The largest programs were public safety of $26,326,367, public works of
$22,917,747, community and economic development of $22,030,950 and culture and recreation of
$12,749,558
Business -type activities. Business -type activities increased net assets by $5,337,061 in fiscal year
2012 compared to the 2011 increase of $1,908,955, primarily due to new Central Street parking
ramp and new equipment purchases in both Transit and Water Utility.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET ASSETS
Revenues:
Program revenues
Charges for services
Operating grants and contributions
Capital grants and contributions
General revenues
Property taxes
Local option sales tax
HoteVmotel tax
Utility franchise fees
Gaming
Unrestricted investment eammgs
Crave on sale of capital assets
Other
Total revenues
Expenses:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic
development
General government
Interest on long -tenn debt
Sewage disposal works
Water utility
Stortnwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Total expenses
Increase (decrease) in net assets
before extraordinary item and transfers
Extraordinary item
Transfers
Increase (decrease) in net assets
Net assets, beginning
Net assets, ending
Governmental Activities
Business -type Activities
Total
2012 2011
2012 2011
2012
2011
$ 13,288,852 $ 12,549,651 $
23,013,997 14,204,627
16,560,811 23,482,866
30,816,614 28,249,114
8,459,888 7 ,929,761
1 ,903,944 1,826,809
2,272,481 2,488,858
8,785,453 13,327,223
1,529,149 668,363
1,417,048 149 ,937
622,494
108,048,237 105,499,703
26,326,367 23,759,068
22 ,917,747 18,978,423
913 ,954 1,072,347
12,749,558 10 ,911,733
22,030 ,950 12,890,841
6,133 ,983 9,052,704
3,294 ,912 3,294 ,951
94,367,471
79 ,960,067
13,680,766 25,539,636
(4,749,948) (1,211,263)
8 ,930,818 24,328,373
348,263,063 323 ,934,690
$ 357,193,881 $ 348,263,063
30
24,156,214
1,579,493
5,323,486
206,672
84,178
31,350,043
$ 22,075,091
2,773 ,933
6,536,527
184,581
19,337
31,589,469
9,718,669 7,899,011
7,410,710 6,523 ,993
2,750,767 2,811,321
3,152,055 4,775,834
22,787 180,086
3,173,075 2,828,891
3,629,750 2,947 ,958
661,395 671,647
30,519,208 28,638,741
830,835 2 ,950,728
(243,722) (2,253,036)
4,749,948 1,211,263
5,337,061 1,908 ,955
138,524,071 136,615,116
$ 143,861,132 $ 138,524,071
$ 37,445,066 $ 34,624,742
24,593,490 16 ,978,560
21,884,297 30,019,393
30,816,614 28,249,114
8,459,888 7 ,929,761
1 ,903,944 1,826,809
2,272,481 2,488,858
8,785,453 13,327,223
1,735,821 852,944
1,501,226 169,274
622,494
139,398,280 137,089,172
26,326,367 23,759,068
22 ,917,747 18,978,423
913 ,954 1,072,347
12,749,558 10 ,911,733
22,030 ,950 12,890,841
6,133 ,983 9,052,704
3,294 ,912 3,294 ,951
9,718,669 7,899,011
7,410,710 6,523 ,993
2,750,767 2,811,321
3,152,055 4,775,834
22,787 180,086
3,173,075 2,828,891
3,629,750 2,947 ,958
661,395 671,647
124,886,679 108,598,808
14,511,601 28,490,364
(243,722) (2,254036)
14,267,879
486,787,134
$ 501,055,013
26,237,328
460,549,806
$ 486,787,134
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
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 $68,286,099 at June 30,
2012. $16,519,415 is in non spendable for inventory, advances to other funds, receivables, and
prepaid items. $69,412 is non spendable endowment corpus. $31,362,126 is restricted for debt
service and bond ordinance, road use tax funds, capital improvements, community development
programs, employee benefits, endowments and various grants. Council ordinance has committed
$5,843,671 for capital improvements. $5,549,803 is assigned for capital improvements and
equipment. This leaves $8,941,672 for unassigned fund balances in the government funds. The
general fund's fund balance reserve goal is 10% of budgeted annual expenditures. The fund
balance ofthe General Fund increased by $4,621,751 to $20,534,178 due to an increase in notes
receivable funded by long term debt.
The fund balance of special revenue fund Employee Benefits decreased by $11,983 to $33,084
due to a decline in delinquent tax receivables.
The fund balance of special revenue fund Community Development increased by $4,568 to
$12,099,478 due to timing issues relative to grant revenue and related expenditures.
The fund balance of special revenue fund Tax Increment Financing increased by $1,734,485 to
$4,399,634 due to an increase in transfers in and tax revenue.
The fund balance ofthe capital projects fund Street Construction decreased by $459,945 to
$3,012,193 due to transfers from other funds and the timing of budgeted capital expenditures.
The fund balance ofthe capital projects fund General Construction increased by $8,533,781 to
$17,312,534 due to transfers from other funds and the timing of budgeted capital expenditures.
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, 2012, totaled $143,861,132 of which
$10,665,596 is unrestricted. The net assets ofthe internal service funds increased by $619,003 to
$798,803 due to the City making additional contribution from General Fund to rebuild reserve
after prior years' higher than normal health insurance and workers compensation claims. The
unrestricted net assets ofthe internal service funds are $767,345 (96.1 %).
31
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
The Water and Resource Recovery Center had a decrease in net assets of $935,609 for total net
assets of $38,548,201 at June 30, 2012 primarily due to increase in liabilities for the construction
of the new water pollution control plant, and the sewer funds share of the debt service cost for
the water meter replacement project. The fund also experienced an extraordinary loss of
$243,722 due to final mercury cleanup activities.
The Water Utility had an increase in net assets of $66,013 for total net assets of $24,254,392,
primarily due to new equipment.
The Storm Water Utility had a decrease in net assets of $909,215 due to Bee Branch construction
costs. Ending net assets are $30,290,039.
The Parking Facilities had an increase in net assets of $718,909 due to completion of Central
Street Parking Ramp and land donation from Economic Development. Ending net assets are
$38,437,446.
Other Enterprise Funds increased by $6,397,003 primarily due to Transits' increase of
$6,281,862. Transit received grant dollars for replacement of the entire bus fleet.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2011 -2012 cash basis budget The first amendment
was passed in September 2011 to reflect operating and capital budget carryovers (continuing
appropriation authority) from 2011 and amended the FY 2012 budget for operating and capital
City Council actions since the beginning of the fiscal year. The second budget amendment was
passed in April 2012 to reflect City Council actions since the second budget amendment and
amendments to add additional appropriation authority due to increased revenues.
The final budget for total cash basis receipts increased by $57,096,999. 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 $113,985,239 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 $47,709,746 less than the final amended budget, and cash basis
expenditures were $106,495,682 less than the final amended budget due primarily to projected
capital projects not completed by fiscal year end.
32
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
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, 2012, amounts to $601,321,874 (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 Activities
Business -type Activities Total
2012 2011 2012 2011 2012 2011
Land $ 64,719,688 $ 65,444,288 $ 17,226,067 $ 17,028,167 $ 81,945,755 $ 82,472,455
Buildings 125 ,968,862 125,774,456 94 ,924,124 85,942 ,961 220,892 ,986 211,717,417
Improvements other than buildings 16,685,857 16,648,148 72,619,054 70,117,869 89,304 ,911 86,766,017
Machinery and equipment 37,141,418 35,616,512 68,654,938 64,510,585 105,796,356 100,127,097
Infrastructure 210,567,846 197 ,987,110 - 210,567,846 197 ,987,110
Construction in progress 29,378,594 18,874,510 63,139,045 42,610,599 92,517,639 61,485,109
Accumulated depreciation (110,810,671) (102,677,465) (88,892,948) (85,749,769) (199,703,619) (188,427,234)
$ 373,651,594 $ 357,667,559 $ 227,670,280 $ 194,460,412 $ 601,321,874 $ 552,127,971
Major expenditures during 2011 -2012 were for the construction work on the Water and Resource
Recovery Center plant, Bee Branch storm water projects, water meter replacement project,
Millwork District projects, and Southwest Arterial.
Long -term debt. At year end the City had $185,781,315 of debt outstanding. This is an increase
of $60,351,700 from June 30, 2011. New debt issued during the current year included general
obligation bonds for $33,935,000. 2011A series ($6,330,000) proceeds of the bonds will be used
to pay costs of acquisition, construction, reconstruction, improvements and equipping of
waterworks, water mains, and extensions, including water main and fire hydrant replacements,
pump station and laboratory improvements and field electrical upgrades; the construction of the
Southwest Arterial freeway improvements; the acquisition of solid waste collections vehicles;
the construction of the Bee Branch Creek Restoration Project and the acquisition of real property
and right -of -way for the same; acquisition of flood control barriers; the construction,
reconstruction, improvement and repair of sanitary sewer works and facilities including the
installation of forcemain and sewer main extensions, the rehabilitation, reconstruction and
replacement of existing sanitary sewers, and the acquisition, installation, replacement and
improvement of pumping stations, motors, flow monitoring and other sanitary sewer control
equipment and facilities, and the payment of costs associated with the stipulated civil penalty and
supplemental environmental project required under Consent Decree with the federal and state
authorities concerning the Water Pollution Control Plant and sanitary sewer system. In addition
33
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
the proceeds will be used for the relamping of Iowa Street Parking Ramp facilities. 2011B series
($1,590,000) proceeds of the bonds will be used to pay the cost of aiding in the planning,
undertaking and carrying out the urban renewal project activities for the Dubuque Industrial
Center West Economic Development District and the Greater Downtown Urban Renewal Area,
including those costs associated with grading and road construction of the South Siegert farm
area of DICW, emergency repairs to the Port of Dubuque parking Ramp and related litigation
expenses, and the costs of the rehabilitation , renovation and reconstruction of the former 18th
Street Fire Engine House #1, including the provisions of construction financing to the private
developer undertaking the rehabilitation of the same. GO bonds 2012A series ($4,380,000) were
issued to provide funds to pay the costs of aiding in the planning and undertaking and carrying
out of urban renewal project activities including those costs associated with the construction of
an intermodal transportation center. 2012B series ($7,495,000) proceeds will be used to pay
the costs of the construction, reconstruction and repair of street, sidewalk and streetscape
improvements, including those associated with the East 7th and Commercial Street
reconstruction and related improvements, two -way street traffic conversions, and Historic
Millwork District complete streets improvements, and the refunding and refinancing of the
General Obligation Capital Loan Notes Series 2010F. 2012C series ($6,965,000) provide funds
to pay the costs of reconstruction, extension and improvements of the Dubuque Regional
Airport; and aiding in the planning, undertaking and carrying out of urban renewal project
activities for the Dubuque Industrial Center West Economic Development District (DICW) and
the Greater Downtown Urban Renewal District, including those costs associated with grading,
road construction, bridge, utilities extension and development of a recreation area on the South
Siegert Farm area of the DICW and the funding of development incentives in the Washington
Neighborhood Subarea of the Greater Downtown Urban Renewal District. 2012D series
($7,175,000) proceeds will be used to pay costs of E911 Tower relocation; equipping the
municipal fire department; rehabilitation and improvement of existing City parks; FEMA land
buyouts for acquisition and demolition of abandoned, dilapidated or dangerous buildings,
structures or properties, acquisition, construction, extension and improvement of works and
facilities useful for the collection, treatment and disposal of sewage and industrial waste and for
the collection and disposal of surface water and streams; acquisition, construction,
improvement, repair and equipping of the municipal water utility and real and personal property
useful for providing potable water; aiding in the planning, undertaking and carrying out of urban
renewal project activities for the DICW and the Greater Downtown Urban Renewal District
including those costs associated with grading, road construction, bridge, utilities extension and
development of a recreation area on the South Siegert Farm area of the DICW; City Hall repairs
and improvements, including brick tuck pointing and reconstruction, repair and improvement of
Fire Station #4, the Civic Center and the Grand River Conference Center.
The City also received disbursements from the State Revolving Fund construction loan program
of $29,401,340. $755,174 is construction loan funds for storm water projects; $27,931,664 is
34
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2012
construction loan for sanitary sewer, and $714,502 is construction loan funds for the City's water
meter replacement project. The City also received a $4,500,000 from the Iowa Housing
Authority for Caradco warehouse property in the Millwork District.
The City continues to operate under the State debt capacity limitations. The State limits the
amount of general obligation debt outstanding to 5% of the assessed value of all taxable property
in the community. Thus our debt capacity is $177,667,991. With $142,316,000 of debt
applicable against the capacity, we are utilizing 80.1% 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 5.2 %, a 0.6% decrease from the prior
year, and lower than both the State of Iowa's 5.5% rate and 8.2% national rate.
The assessed valuation of taxable property, net of exemptions, increased by 3.9% to $2,243,474.
In fiscal year 2012, the minimum monthly refuse rate increased $0.97 to $11.69, sewer rates
increased 15 %, water rates increased 15 %, and the storm water monthly fee remained the same
at $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 13th Street, Dubuque, Iowa 52001 -4864.
35
36
Basic Financial Statements
June 30, 2012
City of Dubuque, Iowa
37
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
JUNE 30, 2012
Component Units
Dubuque Dubuque
Primary Government Metropolitan Initiatives
Governmental Business -type Area Solid and
Activities Activities Total Waste Agency Subsidiaries
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 49,242,295 $ 21,446,759 $ 70,689,054 $ 5,605,405 $ 2,193,333
Receivables
Property tax
Delinquent 216,814 - 216,814 - -
Succeeding year 22,750,684 - 22,750,684 - -
Accounts and other 1,560,525 3,841,721 5,402,246 270,943 92,147
Special assessments 790,879 - 790,879 - -
Accrued interest 159,859 29,657 189,516 4,839 38,389
Notes 1,157,080 - 1,157,080 - 34,697
Intergovenuuental 8,553,182 899,465 9,452,647 - -
Internal balances 198,873 (198,873) - - -
Inventories 1,437,458 538,726 1,976,184 - 530,251
Prepaid items 157,046 425,000 582,046 14,118 16,500
Restricted cash - - - - 1,253,005
Total Current Assets 86,224,695 26,982,455 113,207,150 5,895,305 4,158,322
NONCURRENT ASSETS
Temporarily restricted cash and pooled
cash investments 2,184,202 957,802 3,142,004 4,501,308 915,764
Permanently restricted cash and pooled
cash investments 69,412 - 69,412 - -
Notes receivable 14,946,415 - 14,946,415 - 11,058,002
Capital assets
Land 64,719,688 17,226,067 81,945,755 2,776,217 131,983
Buildings 125,968,862 94,924,124 220,892,986 65,922 44,444,260
Improvements other than buildings 16,685,857 72,619,054 89,304,911 6,364,906 32,816
Machinery and equipment 37,141,418 68,654,938 105,796,356 3,909,301 -
Infrastructure 210,567,846 - 210,567,846 - -
Construction inprogress 29,378,594 63,139,045 92,517,639 299,300 -
Accunflated depreciation (110,810,671) (88,892,948) (199,703,619) (7,985,818) (2,495,724)
Total Noncurrent Assets 390,851,623 228,628,082 619,479,705 9,931,136 54,087,101
Total Assets 477,076,318 255,610,537 732,686,855 15,826,441 58,245,423
38
EXHIBIT 1
Component Units
Dubuque Dubuque
Primary Government Metropolitan Initiatives
Governmental Business -type Area Solid and
Activities Activities Total Waste Agency Subsidiaries
LIABILITIES
CURRENT LIABILITIES
Accounts payable $ 6,900,858 $ 6,012,106 $ 12,912,964 $ 119,622 $ 510,307
Accrued payroll 253,314 109,847 363,161 13,731
Loans payable 47,143 21,931 69,074 -
Notes payable 208,702 2,456,402 2,665,104 - 609,190
General obligation bonds payable 2,534,046 1,700,504 4,234,550 - -
Revenue bonds payable - 260,000 260,000 - -
Tax increment financing bonds payable 346,617 - 346,617 - -
Accrued compensated absences 194,134 28,781 222,915 535 -
Accruedinterestpayable 329,815 290,128 619,943 - 105,706
Intergovernmental payable 4,293 - 4,293 61,475
Unearned revenue
Succeeding year property tax 22,750,684 - 22,750,684 - -
Other 196,139 196,139 -
Total Current Liabilities 33,765,745 10,879,699 44,645,444 195,363 1,225,203
NONCURRENT LIABILITIES
Loans payable 4,688,571 309,304 4,997,875 -
Notes payable 1,558,962 59,501,347 61,060,309 -
General obligation bonds payable 50,553,765 33,407,499 83,961,264 -
Revenue bonds payable - 6,261,905 6,261,905 -
Landfill closure andpostclosure care - - 4,106,246
Tax increment financing bonds payable 21,911,666 21,911,666 -
Accrued compensated absences 5,171,910 911,059 6,082,969 277,862
Net OPEB liability 2,231,818 478,592 2,710,410 48,556
Total Noncurrent Liabilities 86,116,692 100,869,706 186,986,398 4,432,664
Total Liabilities 119,882,437 111,749,405 231,631,842 4,628,027
29,904,035
29,904,035
31,129,238
NET ASSETS
Invested in capital assets, net of related debt 347,890,769 132,237,734 480,128,503 5,429,829 11,600,110
Restricted for/by:
Bond ordinance /development agreement 2,092,575 957,802 3,050,377 - -
Debt service 168,141 168,141 - -
Employee benefits 33,084 - 33,084 - -
Community development 13,062,515 - 13,062,515 - -
Iowa Finance Authority trust 250,892 - 250,892 - Capital projects 8,713,045 - 8,713,045 - -
Franchise agreement 246,395 - 246,395 - -
Endowments, expendable 66,632 - 66,632 - -
Endowments, nonexpendable 69,412 - 69,412 - -
Other 1,477,409 - 1,477,409 - -
State statute - - - 345,408 -
Minority interest - - - 1,231,061 -
Unrestricted (16,876,988) 10,665,596 (6,211,392) 4,192,117 15,516,075
Total Net Assets $ 357,193,881 $ 143,861,132 $ 501,055,013 $ 11,198,415 $ 27,116,185
See notes to financial statements.
39
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR YEAR ENDED JUNE 30, 2012
Program Revenues
Functions/Programs
Primary government
Governmental activities
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Interest on long -term debt
Total governmental activities
Business -type activities
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
America's River Project
Refuse collection
Transit system
Salt
Total business -type activities
Total primary government
Component units
Dubuque Metropolitan Area Solid Waste Agei
Dubuque Initiatives and Subsidiaries
Total component units
See notes to financial statements.
Expenses
Operating
Charges for Grants and
Services Contributions
Capital
Grants and
Contributions
$ 26,326,367 $ 2,915,562 $
22,917,747 5,178,439
913,954 112,476
12,749,558
22,030,950
6,133,983
3,294,912
94,367,471
2,321,553
728,692
2,032,130
13,288,852
154,036 $ 902,857
6,466,680 15,136,452
10,329 21,572
1,380,867 381,431
14,278,683 117,975
723,402 524
23, 013, 997 16,560,811
9,718,669 7,827,281 - 486,321
7,410,710 6,037,073 9,937 521,659
2,750,767 3,180,134 74,300 900,031
3,152,055 2,908,989 70,200 203,927
22,787 - - -
3,173,075 3,257,960 - 22,513
3,629,750 278,835 1,425,056 3,189,035
661,395 665,942 - -
30,519,208 24,156,214 1,579,493 5,323,486
$ 124,886,679 $ 37,445,066 $ 24,593,490 $ 21,884,297
$ 3,976,027 $ 4,100,388 $
4,971,762 2,925,639
$ 8,947,789 $ 7,026,027 $
24,499 $
457,500
481,999 $
10,991,608
10,991,608
General revenues
Property taxes
Local option sales tax
Hote Emote 1 tax
Utility franchise fees
Gaming
Unrestricted investment earnings
Gain on disposal of capital assets
Extraordinary item, mercury cleanup
Transfers
Total general revenues, extraordinary item and transfers
Change in net assets
Net assets, beginning of year
Net assets, ending of year
40
EXHIBIT 2
Net (Expense) Revenue and
Changes in Net Assets
Component Units
Primary Government Dubuque Dubuque
Metropolitan Initiatives
Governmental Business -type Area Solid and
Activities Activities Total Waste Agency Subsidiaries
$ (22,353,912) $ - $ (22,353,912) $
3,863,824 - 3,863,824
(769,577) - (769,577)
(8,665,707) - (8,665,707)
(6,905,600) - (6,905,600)
(3,377,927) - (3,377,927)
(3,294,912) - (3,294,912)
(41,503,811) - (41,503,811)
- (1,405,067) (1,405,067) -
- (842,041) (842,041) -
- 1,403,698 1,403,698 -
- 31,061 31,061 -
- (22,787) (22,787) -
- 107,398 107,398 -
- 1,263,176 1,263,176 -
- 4,547 4,547 -
- 539,985 539,985 -
$ (41,503,811) $ 539,985 $ (40,963,826) $ - $
148,860
9,402,985
148,860 9,402,985
30,816,614 - 30,816,614 -
8,459,888 - 8,459,888 -
1,903,944 - 1,903,944 -
2,272,481 - 2,272,481 -
8,785,453 - 8,785,453 -
1,529,149 206,672 1,735,821 32,277 600,092
1,417,048 84,178 1,501,226 -
- (243,722) (243,722) -
(4,749,948) 4,749,948 - -
50,434,629 4,797,076 55,231,705 32,277 600,092
8,930,818 5,337,061 14,267,879 181,137 10,003,077
348,263,063 138,524,071 486,787,134 11,017,278 17,113,108
$ 357,193,881 $ 143,861,132 $ 501,055,013 $ 11,198,415 $ 27,116,185
41
CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2012
Special Revenue Capital Projects
Tax Other
Employee Increment Community Street General Govemrmental
General Benefits Financing Development Construction Construction Funds
Total
ASSETS
Cash and pooled cash investments $ 13,139,302 $ - $ 2,224,398 $ 1,842,451 $ 3,365,964 $17,224,805 $ 9,191,079 $ 46,987,999
Receivables
Property tax
Delinquent 175,474 36,043 - - - 5,297 216,814
Succeeding year 18,125,134 4,265,327 - - - 360,223 22,750,684
Accounts and other 1,372,259 - - - - 169,858 1,542,117
Special assessments - - 790,879 790,879
Accrued interest 60,606 - 42,886 35 ,910 5,853 496 12,6(4 158,355
Notes 5,036,733 - 37,000 10,161,344 - 210,618 657,800 16,103,495
Intergovemrmental 1,922,114 - 1,052,140 2,558,642 - 3,020,286 8,553,182
Due from other funds 148,835 - - - - - 148,835
Inventories 407,579 - - - - 951 ,910 1,359,489
Advances to other funds 56,465 - - - - - 56,465
Prepaid items 112,582 - 24,450 8,598 - - 11,416 157,046
Restricted cash and pooled cash
investments 2,092,575 - 161,039 2,253,614
Total Assets $ 40,557,083 $ 4,301,370 $ 4,421,309 $13,100,443 $ 5,930,459 $17,435,919 $15,332,391 $ 101,078,974
42
EXHIBIT 3
Special Revenue Capital Projects
Tax Other
Employee Increment Community Street General Governmental
General Benefits Financing Development Construction Construction Funds
Total
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 1,348,963 $ $ 21,675 $ 986,596 $ 800,943 $ 123,385 $ 2,072,501 $ 5,354,063
Accrued payroll 180,379 - - 7,217 - - 34,108 221,7(4
Intergovemrnental payable - - - - 4,293 4,293
Deferred revenue
Succeeding year property tax 18,125,134 4,265,327 - 360,223 22,750,684
Other 368,429 2,959 7,152 2,117,323 - 1,966,268 4,462,131
Total Liabilities 20,022,905 4,268,286 21,675 1,000 ,965 2 ,918,266 123,385 4,437,393 32,792,875
FUND BALANCES
Nonspendable
Endowment corpus - - - - - 69,412 69,412
Inventory 407,579 - - - 951,910 1,359,489
Long -term notes receivable 5,036,733 - - 9,698,812 - 210,618 252 14,946,415
Prepaid items 112,582 - 24,450 8,598 - - 11,416 157,046
Advances to other funds 56,465 - - - 56,465
Restricted
Endowments - - - - - - 66,632 66,632
Library - - - - - - 1,228,694 1,228,694
Debt service - - - - - 168,141 168,141
Bond ordinance - - 2,092,575 - - - - 2,092,575
Capital improvements - - 2,282,609 - - 17,101 ,916 4,287,368 23,671,893
Franchise agreement - - - - - 246,395 246,395
Special assessments - - - - - - 245,218 245,218
Claims - - - - - - 3,497 3,497
Iowa Finance Authority trust - - - - - - 250,892 250,892
Community programs - - - 2,392,068 - - 963,037 3,355,105
Employee benefits - 33,084 - - - - - 33,084
Committed, capital improvements - - - - 3,012,193 - 2,831,478 5,843,671
Assigned
DRA gaming and distribution 5,549,803 - - - - - 5,549,803
Unassigned 9,371,016 - - - - (429,344) 8,941,672
Total Fund Balances 20,534,178 33,084 4,399,634 12,099,478 3,012,193 17,312,534 10,894 ,998 68,286,099
Total Liabilities and Fund
Balances $ 40,557,083 $ 4,301,370 $ 4,421,309 $13,100,443 $ 5,930,459 $17,435 ,919 $15,332,391 $ 101,078,974
See notes to financial statements.
43
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET ASSETS
JUNE 30, 2012
EXHIBIT 3 -1
Total fund balances - govemmental funds $ 68,286,099
Amounts reported for the governmental activities in the statement of
net assets are different because:
Capital assets used in govemmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets
Accumulated depreciation
$ 484,360,527
(110,740,391)
Some of the City's revenues will be collected after year -end but are not available
soon enough to pay for the current period's expenditures and therefore are
deferred in the funds. Those revenues consist of
Property tax 26,394
Special assessments 547,366
Other 3,692,232
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.
Some liabilities are not due and payable in the current period and
therefore are not reported in the funds. Those liabilities consist of
General obligation bonds
Tax increment financing bonds
Notes payable
Loans payable
Accrued interest
Compensated absences
Net OPEB liability
(53,087,811)
(22,258,283)
(1,767,664)
(4,735,714)
(329,815)
(5,366,044)
(2,231,818)
373,620,136
4,265,992
798,803
(89,777,149)
Net assets of governmental activities $ 357,193,881
See notes to financial statements.
44
45
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
General
Special Revenue Capital Projects
Tax Other
Employee Increment Community Street General Govemmental
Benefits Financing Development Construction Construction Fund
Total
REVENUES
Taxes $ 25 ,805,872 $ 3,535,586 $ 9,590,342 $ - $ 2,389,803 $ - $ 2,122,066 $ 43,443¢69
Special assessments - - - - - - 596,138 596,138
Licenses andpennts 1,570,022 - - - - - - 1,570,022
Intergwemmental 3,256,423 - 28 ,370 10,094 ,549 7,166,800 2,788 ,526 14,990,115 37,574,783
Charges for services 9,074,084 - - 8,688 14,703 - 198,854 9,296,329
Fines and forfeits 525 ,389 - - - - - - 525 ,389
Investment earnings 393,016 - 833 ,847 103,268 19,046 40,176 121,984 1 ,511,437
Contributions 528 ,589 - - - 4,090 8,705 1,036,992 1,578,376
Gaming 8,785,453 - - - - - - 8,785,453
Miscelanecus 129 ,588 - 305 ,511 113,473 - 5,420 765 ,566 1 ,319 ,558
Total Revenues 50,068,436 3 ,535 ,586 10,758,070 10 ,319,978 9 ,594,442 2,842,927 19,081,715 106,201,154
EXPENDITURES
Cunent
Public safety 24,476772 - - - - - - 24,476,772
Public woks 7,901,994 - - 77,082 - - 4,406,853 12 ,385,929
Health and social services 777,129 - - 51,708 - - - 828,837
Culture and recreation 10,649,075 - 5,402 141,188 - - 77,809 10,873,474
Community and economic
development 3 ,380,056 - 3 ,629,989 10,608,644 - - 4,618,451 22,237 140
General government 5,636,281 276 - - - - 699 ,390 6 ,335,947
Dell service
Principal 35,000 - 2,059,420 - - - 1,130,260 3 ,224,680
Interest and fiscal charges 19,124 - 2 ,642,710 - 558,712 3,220 ,546
Capital projects - - - - 10,836 ,538 4,063,126 8,560,227 23,459,891
Total Expendtures 52,875,431 276 8 ,337 ,521 10,878,622 10,836 ,538 4,063,126 20,051,702 107,043,216
EXCESS (DEFICIENCY) OF
REVENUES OVER (UNDER)
EXPENDITURES (2 ,806,995) 3 ,535 ,310 2,420 ,549 (558,644) 0742,0961 (1220,199) (969987) (842,062)
46
EXHIBIT 4
General
Special Revenue Capital Projects
Tax Other
Employee Increment Community Street General Governmental
Benefits Financing Development Construction Construction Funds
Total
OTHER FINANCING
SOURCES (USES)
Issuance of debt 4,944,780 - 5,931 ,395 - 1,005,710 11,103,128 4,230,350 27215,363
Discount on bonds (26 ,321) - - - - (45 ,368) - (71,689)
Premium on bonds 43,171 - 27,427 - 12,909 - 40,483 123,990
Transfers in 4,848,561 - 808,953 492,114 116,985 652 2,506,122 8,773 ,387
Transfers out (3p78,464) (3.547293) (7,453 ,839) - (485,878) (2,758,192) (1,012,937) (18,336,60)
Insurance recovery - - - - 132,425 - - 132,425
Sale of capital assets 697,019 - - 71,098 - 1,453,760 - 2221,877
Total Other Financing
Sources (Uses) 7,428746 (3.547293) (686,064) 563,212 782,151 9,753,980 5,764,018 20 (358750
NET CHANGE IN FUND
BALANCES 4,621,751 (11,983) 1734,485 4 ,568 (459945) 8,533,781 4,794,031 19216,688
FUND BALANCES,
BEGINNING 15,912,427 45 (367 2,665,149 12,094,910 3,472,138 8,778,753 6,100,967 49 (369,411
FUND BALANCES, ENDING $ 20 ,534,178 $ 33 (384 $ 4 ,399,634 $ 12,099,478 $ 3,012,193 $ 17 ,312 ,534 $ 10,894,998 $ 68286 (399
See notes to financial statements.
47
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS STATEMENT OF REVENUES,
EXPENDITURES, AND CHANGES IN FUND BALANCES TO THE STATEMEMT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2012
Net change in fund balances - total govemmental funds $ 19,216,688
Amounts reported for governmental activities in the statement of activities are different because:
Capital outlays are reported as expenditures in governmental funds. However, in the
statement of activities, the cost of capital assets is allocated over their estimated useful lives
and reported as depreciation expense. In the current period, these amounts are:
Capital assets expended in governmental funds $ 23,572,494
Transfers of capital assets from enterprise funds 2,799,256
Transfers of capital assets to enterprise funds (197,900)
Contributions from developers and federal government 127,087
Depreciation expense (8,766,933)
In the statement of activities, only the gain or loss on the sale of capital assets is reported,
whereas in the govemmental 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.
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 govemmental funds. Deferred revenues increased by these amounts this year:
Property tax 2,111
Special assessments 16,416
Other 134,284
48
17,534,004
(1,542,404)
152,811
EXHIBIT 4 -1
Debt proceeds provide current financial resources to govemmental funds, but
issuing debt increases long-term liabilities in the statement of net assets.
Repayment of debt principal is an expenditure in the govemmental funds,
but it reduces long -term liabilities in the statement of net assets and does not
affect the statement of activities. Also, governmental finds 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.
Issuance of debt
Discounts and premiums on bonds issued
Debt repayments
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
Increase in accrued interest
Amortization of bond discount'premium
Increase in compensated absences
Increase in net OPEB liability
Total additional expenses
$ (27,215,363)
(52,301)
3,224,680
(80,354)
5,988
(2,619,051)
(312,883)
(24,042,984)
(3,006,300)
Intemal 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 govemmental activities. 619,003
Change in net assets of govemmental activities $ 8,930,818
See notes to financial statements.
49
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
NNE 30, 2012
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Inventories
Prepaid items
Total Current Assets
Business -type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ 7,211,648 $ 5,764,976 $ 1,228,055 $ 1,427,859
2,241,050 769,107
11,961 7,085
83,626 145,452
538,726
425,000
9,548,285 7,650,346
339,988
3,469
154,307
4,239
1,571,512 1,586,405
NONCURRENT ASSETS
Restricted cash and pooled cash investments - 684,712 - 273,090
Advances to other funds - 3,058,000 - -
Capital assets
Land 167,855 59,898 15,332,849 1,629,465
Buildings 31,598,780 8,403,073 - 52,859,249
Improvements other than buildings 37,731,311 761,957 31,729,139 2,396,647
Machinery and equipment 13,878,701 44,120,683 960,367 1,509,363
Construction in progress 46,452,062 82,258 15,956,138 -
Accumulated depreciation (42,130,518) (22,026,605) (9,561,311) (10,529,221)
Net Capital Assets 87,698,191 31,401,264 54,417,182 47,865,503
Total Noncurrent Assets 87,698,191 35,143,976 54,417,182 48,138,593
Total Assets 97,246,476 42,794,322 55,988,694 49,724,998
50
EXHIBIT 5
Enterprise Funds
America's Other
River Entenprise
Project Funds
Total
Goven.nuental
Activities -
Internal
Service Funds
$ 23,966 $ 5,790,255 $ 21,446,759 $ 2,254,296
- 337,269 3,841,721 18,408
2 2,901 29,657 1,504
- 670,387 899,465 -
- - 538,726 77,969
- - 425,000 -
23,968 6,800,812 27,181,328 2,352,177
957,802
3,058,000
36,000 17,226,067 -
2,063,022 94,924,124 -
- 72,619,054 -
8,185,824 68,654,938 101,738
648,587 63,139,045 -
(4,645,293) (88,892,948) (70,280)
6,288,140 227,670,280 31,458
6,288,140 231,686,082 31,458
23,968 13,088,952 258,867,410 2,383,635
51
(Continued)
CITY OF DUBUQUE, IOWA
STATEMENT OF NET ASSETS
PROPRIETARY FUNDS
JUNE 30, 2012
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accrued payroll
Loans payable - current
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued compensated absences
Accrued interest payable
Due to other funds
Total Current Liabilities
NONCURRENT LIABILITIES
Advances from other funds
Loans payable
General obligation bonds payable
Revenue bonds payable
Capital loan notes payable
Accrued Compensated Absences
Net OPEB liability
Total Noncurrent Liabilities
Total Liabilities
NET ASSETS
Invested in capital assets, net of related debt
Restricted by bond ordinance /development agreement
Unrestricted
Total Net Assets
See notes to financial statements.
Business -type Activities -
Sewage
Disposal
Works
Water
Utility
Stormwater
Utility
Parking
Facilities
$ 4,496,097 $ 239,555 $ 1,208,055 $ 11,897
24,362 25,621 3,668 9,529
- 21,931
208,142 238,339 672,595 577,494
260,000 - -
1,719,468 275,000 461,934 -
8,358 535 535 3,780
126,491 43,898 70,601 48,865
6,582,918 1,082,948 2,417,388 673,496
3,058,000 56,465 - -
309,304
4,205,512 4,095,680 14,800,834 10,205,947
6,261,905 - -
44,444,530 6,612,000 8,444,817 -
280,904 296,917 9,207 53,651
126,411 134,015 26,409 45,154
52,115,357 17,456,982 23,281,267 10,614,056
58,698,275 18,539,930 25,698,655 11,287,552
40,825,546 15,599,176 31,735,141 37,893,133
684,712 - 273,090
(2,277,345) 7,970,504 (1,445,102) 271,223
$ 38,548,201 $ 24,254,392 $ 30,290,039 $ 38,437,446
52
EXHIBIT 5
(continued)
Enterprise Funds Governmental
America's Other Activities -
River Enterprise Intemal
Project Funds Total Service Funds
$ 680 $ 55,822 $ 6,012,106 $ 1,546,795
46,667 109,847 31,610
21,931 -
3,934 1,700,504 -
260,000 -
2,456,402 -
15,573 28,781 -
273 290,128 -
142,408 142,408 6,427
680 264,677 11,022,107 1,584,832
3,114,465 -
309,304 -
99,526 33,407,499 -
6,261,905 -
59,501,347 -
270,380 911,059 -
146,603 478,592 -
516,509 103,984,171 -
680 781,186 115,006,278 1,584,832
6,184,738
132,237,734 31,458
957,802 -
23,288 6,123,028 10,665,596 767,345
$ 23,288 $ 12,307,766 $ 143,861,132 $ 798,803
53
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
Business-type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
OPERATING REVENUES
Charges for sales and services $ 7,558,769 $ 6,036,808 $ 3,152,344 $ 2,676,486
Other 268,512 265 27,790 232,503
Total Operating Revenues 7,827,281 6,037,073 3,180,134 2,908,989
OPERATING EXPENSES
Employee expense 3,143,449 2,857,542 917,648 893,987
Utilities 551,810 519,320 2,649 214,229
Repairs and maintenance 592,981 151,600 20,147 165,823
Supplies and services 2,623,794 2,305,135 546,531 330,603
Insurance 106,427 61,597 10,136 47,113
Depreciation 1,412,591 955,090 426,347 972,763
Total Operating Expenses 8,431,052 6,850,284 1,923,458 2,624,518
OPERATING INCOME (LOSS)
(603,771) (813,211) 1,256,676 284,471
NONOPERATING REVENUES (EXPENSES)
Intergovernmental 143,438 155,369 524,785 203,927
Investment earnings 65,167 49,990 30,368 38,747
Contributions - 9,937 74,300 70,200
Interest expense (1,287,617) (560,426) (827,309) (527,537)
Gain (loss) on disposal of assets 204,901 557 - -
NetNonoperating Revenues (Expenses) (874,111) (344,573) (197,856) (214,663)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS,
EXTRAORDINARY ITEMS AND TRANSFERS (1,477,882) (1,157,784) 1,058,820 69,808
CAPITAL CONTRIBUTIONS 342,883 366,290 375,246 197,900
EXTRAORDINARY ITEM, MERCURY CLEANUP (243,722) - - -
TRANSFERS IN 807,291 896,334 244,473 584,962
TRANSFERS OUT (364,179) (38,827) (2,587,754) (133,761)
CHANGE IN NET ASSETS
NET ASSETS, BEGINNING
NET ASSETS, ENDING
See notes to financial statements.
54
(935,609) 66,013 (909,215) 718,909
39,483,810 24,188,379 31,199,254 37,718,537
$ 38,548,201 $ 24,254,392 $ 30,290,039 $ 38,437,446
EXHIBIT 6
Enterprise Funds Governmental
America's Other Activities -
River Enterprise Internal
Project Funds Total Service Funds
$ - $ 4,102,183 $ 23,526,590 $ 11,260,418
- 100,554 629,624 40,576
4,202,737 24,156,214 11,300,994
116 3,507,029 11,319,771 2,831,509
- 60,783 1,348,791 23,117
- 540,517 1,471,068 30,501
22,671 2,624,408 8,453,142 9,913,373
- 56,724 281,997 105,550
- 671,629 4,438,420 7,565
22,787 7,461,090 27,313,189 12,911,615
(22,787) (3,258,353) (3,156,975) (1,610,621)
- 4,636,604 5,664,123 -
(340) 22,740 206,672 17,712
- - 154,437 -
- (3,130) (3,206,019) -
- (121,280) 84,178 -
(340) 4,534,934 2,903,391 17,712
(23,127) 1,276,581 (253,584) (1,592,909)
- - 1,282,319 -
- - (243,722) -
23,087 5,331,595 7,887,742 2,211,912
- (211,173) (3,335,694) -
(40) 6,397,003 5,337,061 619,003
23,328 5,910,763 138,524,071 179,800
$ 23,288 $ 12,307,766 $ 143,861,132 $ 798,803
55
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2012
Business -type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 6,151,081 $ 5,947,709 $ 3,140,763 $ 2,607,420
Cash payments to suppliers for goods and services (6,776,017) (3,007,358) (730,647) (1,934,995)
Cash payments to employees for services (2,988,212) (2,724,392) (916,720) (873,291)
Other operating receipts 268,512 265 27,790 232 ,503
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES (3,344,636) 216,224 1,521,186 31,637
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds 807,291 896,334 244,473 387,062
Transfers to other funds (216,311) - (108,953)
Proceeds from interfund balances 225,405 -
Paymentofinterfundbalances - (278,926) -
Intergovernmentalgrantproceeds 1,255,468 - -
Payments for extraordinary item (243,722)
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES 1,828,131 617,408 244,473 278,109
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 204,901 557
Acquisition and construction of capital assets (25,475,015) (1,516,354) (7 ,550,511) (372,974)
Proceeds from issuance of debt 30,819,996 4,061,252 5,474,964 234,330
Premium on Debt Issuance 32,475 52,083 - -
Payment of debt (184,520) (739,000) (2,697,994) (616,628)
Interest paid (1,215,787) (558,308) (818,756) (528,916)
Contributions 9,937 74,300 70,200
Intergovernmental grant proceeds 9,917 2,989,318 548 ,583
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES 4,182,050 1,320,084 (2,528,679) (665,405)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 66,128 50,443 29,800 34 ,508
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
56
2,731,673 2,204,159
(733,220) (321,151)
4,479,975 4,245,529 1,961,275 2,022,100
$ 7,211,648 $ 6,449,688 $ 1,228,055 $ 1,700,949
EXHIBIT 7
Enterprise Funds Governmental
America's Other Activities -
River Enterprise Internal
Project Funds Total Service Funds
$ - $ 4,098,583 $ 21,945,556 $ 11,424,844
(22,976) (3,232,186) (15,704,179) (9,764,846)
(116) (3,415,676) (10,918,407) (2,858,620)
- 100,554 629,624 40,576
(23,092) (2,448,725) (4,047,406) (1,158,046)
23,087
23,087
5,331,595 7,689,842 2,211,912
(211,173) (536,437) -
142,408 367,813 -
(107,173) (386,099) 6,427
5,727,122 6,982,590 -
- (243,722) -
10,882,779 13,873,987
77,733 283,191
(4,251,485) (39,166,339)
35,780 40,626,322
460 85,018
(2,787) (4,240,929)
(3,040) (3,124,807)
154,437
- 3,547,818
(4,143,339) (1,835,289)
2,218,339
(223) 24,447 205,103 19,675
(228) 4,315,162 8,196,395 1,079,968
24,194 1,475,093 14,208,166 1,174,328
$ 23,966 $ 5,790,255 $ 22,404,561 $ 2,254,296
(Continued)
57
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2012
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Business -type Activities -
Sewage
Disposal Water Stormwater Parking
Works Utility Utility Facilities
$ (603,771) $ (813,211) $ 1,256,676 $ 284,471
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 1,412,591 955,090 426,347 972,763
Change in assets and liabilities
(Increase) decrease in receivables (1,407,688) (89,099) (11,581) (69,066)
Decrease in inventories and prepaid items 163,998
Increase (decrease) in accounts payable (2,901,005) (133,704) (151,184) (1,177,227)
Increase in accrued liabilities 139,854 114,970 (3,267) 14,403
Increase in net OPEB liability 15,383 18,180 4,195 6,293
Total Adjustments (2,740,865) 1,029,435 264 ,510 (252,834)
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ (3,344,636) $ 216,224 $ 1,521,186 $ 31,637
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
Contribution of capital assets from outside sources $ 342,883 $ 366,290 $ 375,246 $ 197,900
Contributions of capital assets to Governmental Activities $ 147,868 $ 38,827 $ 2,587,754 $ 24,808
Contributions of capital assets from Governmental Activities $ - $ - $ - $ 197,900
See notes to financial statements.
58
EXHIBIT 7
(Continued)
Enterprise Funds Governmental
America's Other Activities -
River Enterprise Intemal
Project Funds Total Service Funds
$ (22,787) $ (3,258,353) $ (3,156,975) $ (1,610,621)
671,629 4,438,420 7,565
- (3,600) (1,581,034) 164,426
- 28,245 192,243 41,476
(305) 22,001 (4,341,424) 266,219
- 73,174 339,134 (27,111)
- 18,179 62,230 -
(305) 809,628 (890,431) 452,575
$ (23,092) $ (2,448,725) $ (4,047,406) $ (1,158,046)
$ $ $ 1,282,319 $
$ - $ - $ 2,799,257 $
$ - $ - $ 197,900 $
59
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2012
EXHIBIT 8
Agency
Funds
ASSETS
Cash and pooled cash investments $ 1,473,205
Accounts receivable 55,229
Accrued interest 2,747
Total Assets $ 1,531,181
LIABILITIES
Due to other agency $ 1,531,181
Total Liabilities $ 1,531,181
See notes to financial statements.
60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
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. Extraordinary Item
11. Other Postemployment Benefits (OPEB)
12. Employee Retirement Systems
13. Landfill Closure and Postclosure Care
14. Leases Where City is Lessor
15. Subsequent Events
16. Prospective Accounting Pronouncements
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Reporting Entity
The City of Dubuque, Iowa, is a municipal corporation governed by an elected mayor and a six - member
council. As required by accounting principles generally accepted in the United States of America, these
financial statements present the City and its component units, entities for which the City is considered to
be financially accountable. The City has no blended component units. The discretely presented
component units are reported in separate columns in the government -wide financial statements to
emphasize that they are legally separate from the City.
Discretely Presented Component Units
The Dubuque Metropolitan Area Solid Waste Agency was created under the provisions of Chapter 28E of
the Code of Iowa by the City of Dubuque and Dubuque County. The purpose of the Agency is to provide
solid waste management for the Dubuque metropolitan area. The City appoints a voting majority of the
Agency's governing board and has authority over those persons responsible for the day -to -day operations
of the Agency. The Agency is presented as a proprietary fund type and has a June 30 year end. During
the year ended June 30, 2012, $837,003 of the Dubuque Metropolitan Area Solid Waste Agency's charges
for services were related to services provided to the City of Dubuque.
Dubuque Initiatives and Subsidiaries is a non - profit corporation organized under the laws of Iowa and
Section 501(c)(3) of the Internal Revenue Code. The Organization was created to render service to the
City Council of the City of Dubuque, Iowa, on matters of community interest. The Organization's articles
require that its board members include two city council members, the mayor, and the city manager of the
City of Dubuque, Iowa; and in the event of dissolution, any assets or property of the Organization be
transferred to the City of Dubuque, Iowa. During the fiscal year 2009, the City of Dubuque, Iowa
guaranteed debt issued by Dubuque Initiatives and Subsidiaries for the rehabilitation of the Roshek
Building. The Organization is presented as a proprietary fund type and has a December 31 year end.
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
50 West 13th 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
62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
The City reports the following major governmental funds:
The General Fund is the City's primary operating fund. It accounts for all financial resources of
the general government, except those required to be accounted for in another fund.
The Employee Benefits Fund is used to account for pension and related employee benefit costs for
those employees paid wages from the General Fund.
The Community Development Fund is used to account for the use of Community Development
Block Grant funds as received from federal and state governmental agencies.
The Tax Increment Financing Fund is used to account for the receipt of property taxes, for the
payment of projects within the tax increment financing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long -term debt service.
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.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Private - sector standards of accounting and financial reporting issued prior to December 1, 1989, generally
are followed in both the government -wide and proprietary fund financial statements to the extent that
those standards do not conflict with or contradict guidance of the Governmental Accounting Standards
Board. Governments also have the option of following subsequent private - sector guidance for their
business -type activities and enterprise funds, subject to this same limitation. The City has elected not to
follow subsequent private- sector guidance.
As a general rule the effect of interfund activity has been eliminated from the government -wide financial
statements. Exceptions to this general rule are charges between the City's water and sewer function and
various other functions of the City. Eliminations of these charges would distort the direct costs and
program revenues reported for the various functions concerned.
Amounts reported as program revenues include 1) charges to customers or applicants for goods, services,
or privileges provided, 2) operating grants and contributions, and 3) capital grants and contributions,
including special assessments. Internally dedicated resources are reported as general revenues rather than
as program revenues. Likewise, general revenues include all taxes.
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."
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Advances between funds, as reported in the fund financial statements, are offset by a nonspendable fund
balance account in applicable governmental funds to indicate that they are not available for appropriation
and are not expendable available financial resources.
Property tax receivable is recognized in the funds on the levy or lien date, which is the date that the tax
asking is certified by the City to the County Board of Supervisors. Current year delinquent property tax
receivable represents taxes collected by the County but not remitted to the City at June 30, 2012, 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.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
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. There was
no interest incurred during the construction phase of capital assets of business -type activities to capitalize
with the value of the assets constructed in the current year.
Property, plant, and equipment of the primary government, as well as the component units, are
depreciated using the straight -line method over the following estimated useful lives:
Assets Years
Buildings 40 to 125
Improvements other than buildings 15 to 50
Machinery and equipment 2 to 30
Infrastructure and intangibles 15 to 75
Compensated Absences
The City allows employees to accumulate a limited amount of earned but unused vacation and sick pay
benefits. Vacation pay is payable to employees upon retirement or termination. Sick pay is payable only
upon retirement, in which event, employees with twenty years or more of service are paid 100% of their
accrued sick leave balance over a five year period. All vacation pay and applicable sick pay benefits are
accrued when incurred in the government -wide and proprietary fund financial statements. A liability for
these amounts is reported in governmental funds only if they have matured, for example, as a result of
employee resignations and retirements.
67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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.
NetAssets /Fund Balance
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 government -wide and proprietary fund financial statements, net assets is displayed in three
components as follows:
• Invested in capital assets, net of related debt -This consists of capital assets, net of accumulated
depreciation, less the outstanding balances of any bonds, notes or other borrowings that are
attributable to the acquisition, construction, or improvement of those assets. Net assets invested
in capital assets, net of related debt excludes unspent debt proceeds. Unspent debt proceeds was
$27,562,700 for the governmental activities and $6,136,883 for business -type activities.
• Restricted -This consists of net assets that are legally restricted by outside parties or by law
through constitutional provisions or enabling legislation. Net assets restricted through enabling
legislation as of June 30, 2012 consists of $168,141 for debt service and $33,084 for employee
benefits. All other restrictions are by outside parties through grants, debt agreements or donors.
• Unrestricted -This consists of net assets that do not meet the definition of restricted or invested in
capital assets, net of related debt.
68
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In the governmental fund financial statements, fund balances are classified as follows:
• Nonspendable: Nonspendable fund balances cannot be spent because they are not expected to be
converted to cash or they are legally or contractually required to remain intact.
• Restricted: Restricted fund balances are restricted to specific purposes when constraints placed
on the use of the resources are either externally imposed by creditors, grantor or state or federal
laws or imposed by law through constitutional provisions or enabling legislation.
• Committed. Committed fund balances can be used only for specific purposes determined
pursuant to constraints formally imposed by the City Council through resolution approved prior
to year -end.
• Assigned: Assigned fund balances contain self - imposed constraints of the government to be used
for a particular purpose. Intent can be expressed by the City Council or by an official or body to
which the City Council delegates the authority. The City Council has delegated the authority to
the City Manager, Budget Director, and Finance Director.
• Unassigned: Unassigned fund balances are amounts not included in the other spendable
classifications.
When an expenditure is incurred for purposes for which amounts in the committed, assigned, or
unassigned fund balance classifications could be used, the City first considers the committed to be spent
and then the assigned and unassigned, respectively.
The budget guideline of the City of Dubuque maintains a General Fund working balance or operating
reserve of 10% of the total General Fund operating budget requirements, or approximately $3,987,725 for
fiscal year 2012. An operating reserve or working balance must be carried into a fiscal year to pay
operating costs until tax money, or other anticipated revenue is received. The State of Iowa recommends a
reasonable amount for a working balance as (a) anticipated revenues for the first three months of the
fiscal year, less anticipated expenditures or (b) 5% of the total General Fund operating budget, excluding
fringes and tort liability expenses. The City's rating agency, Moody's Investor Service, recommends a
reserve balance of at least 10% for "A" rated cities. This is based on the fact that a large portion of the
revenue sources are beyond the City's control and therefore uncertain.
An additional $1 million reserve was budgeted in fiscal year 2012 for higher than expected health claims.
This additional reserve was also budgeteted in fiscal year 2010 and 2011. The $1 million reserve was used
to fund the health insurance and worker's compensation reserves due to claims being higher than
anticipated.
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
During the year ended June 30, 2012, 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, 2012:
Internal Service
General Service $
Workers' Compensation Reserve $
20,892
1,032,728
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. An additional $100,000 was
transferred into Workers' Compensation Reserve in FY' 12 to rebuild reserve balance.
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 $12,251 for the City and $800 for the Dubuque
Metropolitan Area Solid Waste Agency.
Deposits. At year -end, the City's carrying amount of deposits was $44,926,587, and the bank balance was
$48,677,955. The City's deposits in banks at June 30, 2012, were entirely covered by federal depository
insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa. This chapter
provides for additional assessments against the depositories to insure there will be no loss of public funds.
The carrying amount of deposits for the Dubuque Metropolitan Area Solid Waste Agency was
$10,105,913, and the bank balance was $10,377,823. The Agency's deposits in banks at June 30, 2012,
were entirely covered by federal depository insurance or by the State Sinking Fund in accordance with
Chapter 12C of the Code of Iowa.
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Investments. As of June 30, 2012, the City had the following investments and maturi ties. (The City
assumes callable bonds will not be called):
Investment Maturities (In Years)
Less Than 1 1 to 5 6 to 10 More than 10 Total
Investment Type
Money Market Funds -
U.S. Treasury
U.S. Treasury Securities
Federal Agency Obligations
Corporate Stock
$ 2,743,857
761,911
2,367,883
86,689
$ 349,750
5,961,891
8,001,848
$ - $ - $ 3,093,607
204,920 2,837,658 9,766,380
2,440,581 4,677,850 17,488,162
86,689
$ 5,960,339 $ 14,313,490 $ 2,645,501 $ 7,515,508 $ 30,434,837
The City and the Dubuque Metropolitan Solid Waste Agency are authorized by statute to invest public
funds in obligations of the United States government, its agencies and instrumentalities; certificates of
deposit or other evidences of deposit at federally insured depository institutions approved by the City
Council or Board of Trustees and the Treasurer of the State of Iowa; prime eligible bankers acceptances;
certain high rated commercial paper; perfected repurchase agreements; certain registered open -end
management investment companies; certain joint investment trusts; and warrants or improvement
certificates of a drainage district.
Corporate stock was donated in 1957 to the City to establish the Ella Lyons Peony Trail Permanent Trust
Fund.
Interest Rate Risk The City's investment policy limits the investment of operating funds (funds expected
to be expended in the current budget year or within 15 months of receipt) to instruments that mature
within 397 days. Funds not identified as operating funds may be invested in instruments with maturities
longer than 397 days, but the maturities shall be consistent with the needs and use of the City.
Credit Risk. The City's investment policy limits investments in commercial paper and other corporate
debt to the top two highest classifications. The City did not invest in any commercial paper or other
corporate debt during the year. The City's investments in Money Market Funds and US Agencies were
rated AAA.
Concentration of Credit Risk. The City's investment policy does not allow for a prime bankers'
acceptance or commercial paper and other corporate debt balances to be greater than ten percent of its
total deposits and investments. The policy also limits the amount that can be invested in a single issue to
five percent of its total deposits and investments. The City held no such investments during the year.
Custodial Credit Risk - Deposits. In the case of deposits, this is the risk that in the event of a bank failure,
the City's deposits may not be returned to it. The City's deposits are entirely covered by federal
depository insurance or by the State Sinking Fund in accordance with Chapter 12C of the Code of Iowa.
This chapter provides for additional assessments against the depositories to insure there will be no loss of
public funds.
Custodial Credit Risk — Investments. For an investment, this is the risk that, in the event of the failure of
the counterparty, the City will not be able to recover the value of its investments or collateral securities
that are in the possession of an outside party. The City had no custodial risk with regards to investments,
since all investments were held by the City or its agent in the City's name.
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Due to legal and budgetary reasons, the General Fund is assigned a portion of the investments earnings
associated with other funds. These funds are the employee benefits, community development, tort
liability, road use tax, cable TV, general construction, transit system, general service, garage service, and
stores /printing funds.
The Dubuque Metropolitan Area Solid Waste Agency had no investments at June 30, 2012.
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 $ 12,251
Canying amount of deposits 44,926,587
Carrying amount of investments 30,434,837
Total $ 75,373,675
Government -wide
Cash and pooled cash investments $ 70,689,054
Cash and pooled cash investments - temporarily restricted 3,1 42,004
Cash and pooled cash investments - permanently restiricted restricted 69,412
Fiduciary
Cash and pooled cash investments 1,473,205
Total $ 75,373,675
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 $ 800
Canying amount of deposits 10,105,913
Total $ 10,106,713
Cash and pooled cash investments $ 5,605,405
Cash and pooled cash investments - temporarily restricted 4,501,308
Total $ 10,106,713
A reconciliation of cash and investments as shown on the government -wide statement of net assets for the
Dubuque Initiatives and Subsidiaries (December 31, 2011) follows:
Deposits $ 1,784,316
Repurchase agreement 1,662,022
Beneficial interest in assets held by others 915,764
Total $ 4,362,102
Cash and pooled cash investments $ 2,193,333
Cash and pooled cash investments- restricted 1,253,005
Cash and pooled cash investments - temporarily restricted 915,764
Total $ 4,362,102
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 4 — NOTES RECEIVABLE
At December 30, 2011, Dubuque Initiatives and Subsidiaries had the following notes receivable:
Lower Main Development, 4.00 %, unsecured, matures August 2018 $ 100,207
City of Dubuque, 5.00 %, unsecured, matures July 2023 331,235
Roshek Building Investment Fund, LLC, 4.74 %, collateralized by a
pledge agreement, matures June 2039 5,366,873
Roshek Building Investment Fund, LLC, 4.74 %, collateralized by a
pledge agreement, matures June 2039 5,294,384
Total notes receivable 11,092,699
Less: current maturities (34,697)
Noncurrent portion 11 058 002
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2011, include amounts due to /from other funds and advances due to /from
other funds. Interfund balances are as follows:
Governmental activities:
General Fund
Internal Service
Business -type activities:
Nonmajor
Due From
Other Funds
Due To
Other Funds
$ 148,835 $
6,427
142,408
$ 148,835 $ 148,835
Advances To
Other Funds
Advances From
Other Funds
Governmental activities:
Major Fund, General $ 56,465 $
Business -type activities:
Major Funds:
Sewage Disposal Works 3,058,000
Water Utility 3,058,000 56,465
$ 3,114,465 $ 3,114,465
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 5 - INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2012, consisted of the following:
Transfer to
General
Community development
Street construction
General construction
Nonmajor governmental
Sewage disposal works
Water utility
Stormwater utility
Parking facilities
Americas River project
Nonmajor enterprise
Internal service funds
Transfer of capital assets
Transfer of capital assets
Total
Transfers From
General
Employee
Benefits
Tax
Increment Street
Financing Construction
$ - $ 3,547,293 $ 551,566 $
652
823,120
28,498
238,425
Sanitary
General Nonmajor Sewer Parking Nonmajor
Construction Governmental Utility Ramps Enterprise Total
- $ 130,000'$ 408,529 $ $ $ 211,173 $
130,834 361,280
832,270
362,785
630,509
584,962
116,985
485,878 907,000 157,854
148,000 268,008
49,513 216,312
6,048
108,953
23,087 -
964,682 4,360,913 6,000
1,000,000 1,211,912
$ 3,078,464 $ 3,547,293 $ 7,453,839 $ 485,878 $ 2,758,192 $ 1,012,937 $ 216,312 $ 108,953 $ 211,173 $
to governmental activities 2,799,256
to business -type activities 197,900
$ 21,870,197
4,848,561
492,114
116,985
652
3,315,075
807,291
896,334
244,473
584,962
23,087
5,331,595
2,211,912
18,873,041
In the fund financial statements, total transfers out of $21,672,297 are greater than total transfers in of
$18,873,041 because of the treatment of transfers of capital assets to the governmental activities capital
assets. During the year, capital assets related to Sewer, Water, Stormwater, and Parking with a book value
of $147,867, $38,827, $2,587,754, and $24,808, respectively, were transferred to governmental activities
capital assets. Net capital assets of $197,900 were transferred from governmental activities capital assets
to parking. No amounts were reported in the governmental funds, as the amounts did not involve the
transfer of financial resources. However, the Sewage Disposal Works and Parking major enterprise funds
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.
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2012, was as follows:
Primary Government:
Governmental activities:
Beginning Transfers Transfers Ending
Balance In Out Reclassification Increases Decreases Balance
Capital assets, not being
depreciated
Land $ 65,444,288 $ - $ - $ - $ 591,548 $ (1,316,148) $ 64,719,688
Construction in progress 18,874,510 - (197,900) - 23,368,319 (12,666,335) 29,378,594
Total Capital assets, not
being depreciated 84,318,798 - (197,900) - 23,959,867 (13,982,483) 94,098,282
Capital assets, being
depreciated
Buildings 125,774,456 24,808 - - 438,958 (269,360) 125,968,862
Imprwemerts other
than buildings 16,648,148 - - - 37,709 - 16,685,857
Machinery and equipment 35,616,512 - - - 2,123,094 (598,188) 37,141,418
Infrastructure 197 ,987,110 2,774,448 - - 9,806,288 - 210,567,846
Total capital assets being
depreciated 376,026,226 2,799,256 - - 12,406,049 (867,548) 390,363 ,983
Less accumulated
depreciation for:
Buildings (27,769,331) - - - (2,196,695) 59,617 (29 ,906,409)
Improvements other
than buildings (6,548,321) - - - (544,405) - (7,092,726)
Machinery and equipment (14 ,956,791) - - - (2,577,406) 581,675 (16 ,952,522)
Infrastructure (53,403,022) - - - (3,455 ,992) - (56,859,014)
Total accumulated
uated
depreciation (102,677,465) - - - (8,774,498) 641,292 (110,810,671)
Total capital assets being
depreciated, net
273,348,761 2,799,256
3,631,551 (226,256) 279,553,312
Governmental activities
capital assets, net $ 357,667,559 $ 2,799,256 $ (197,900) $ - $ 27,591,418 $ (14,208,739) $ 373,651,594
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 — CAPITAL ASSETS (continued)
Business -type activities:
Beginning Transfers Transfers
Balance In Out
Increases Decreases
Ending
Balance
Capital assets, not being
depreciated:
Land $ 17,028,167 $ 197,900 $ - $ - $ 17,226,067
Construction in progress 42,610,599 - (2,799,297) 38,505,697 (15,177,954) 63,139,045
Total Capital assets, not
being depreciated 59,638,766 197,900 (2,799,297) 38,505,697 (15,177,954) 80,365,112
Capital assets, being
depreciated:
Buildings 85,942,961 - - 8,981,163 - 94,924,124
Improvements other
than buildings 70,117,869 - - 2,501,185 - 72,619,054
Machinery and equipment 64,510,585 - - 5,638,607 (1,494,254) 68,654,938
Total capital assets, being
depreciated 220,571,415 - - 17,120,955 (1,494,254) 236,198,116
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Machinery and equipment
Total accumulated
depreciation
(41,466,013)
(20,510,562)
(23,773,194)
(85,749,769)
(1,256,412) - (42,722,425)
(1,263,166)
(1,918,842) 1,295,241
(21,773,728)
(24,396,795)
(4,438,420) 1,296 241 (88 892,948)
Total capital assets, being
depreciated, net 134,821,646 - - 12,682,535 (199,013) 147,305,168
Business -type activities
capital assets, net $ 194,460,412 $ 197,900 $ (2,799,297) $ 51,188,232 $(15,376,967) $ 227,670,280
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 — CAPITAL ASSETS (continued)
Depreciation expense was charged to functions /programs for the primary government as follows:
Governmental activities:
Public safety $ 673,260
Public works 5,160,383
Health and social services
Culture and recreation 1,612,400
Community and economic development 43,640
General government 1,277,250
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 7,565
Total depreciation expense - governmental activities $ 8,774,498
Business -type activities:
Sewage disposal works $ 1,412,591
Water utility 955,090
Stormwater utility 426,347
Parking facilities 972,763
Refuse collection 75,372
Salt 2,221
Transit system 594,036
Total depreciation expense - business -type activities $ 4,438,420
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 6 — CAPITAL ASSETS (continued)
Component Unit:
Beginning Transfers Transfers
Balance In Out
Increases Decreases
Ending
Balance
Capital assets, not being
depreciated:
Land $ 1,586,092 $ - $ - $ 1,190,125 $ - $ 2,776,217
Construction in progress - - - 299,300 - 299,300
Total capital assets, not
being depreciated 1,586,092 - - 1,489,425 - 3,075,517
Capital assets, being
depreciated:
Buildings 65,922 - - - - 65,922
Improvements other
than buildings 6,364,906 - - - - 6,364,906
Machinery and equipment 3,801,218 - - 108,084 - 3,909,302
Total capital assets, being
depreciated 10,232,046 - - 108,084 - 10,340,130
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Machinery and equipment
Total accumulated
depreciation
(47,944)
(5,631,921)
(1,698 783)
(7,378,648)
(719) - (48,663)
(215,314)
(391,137)
(607,170)
(5,847,235)
(2,089,920)
(7,985,818)
Total capital assets, being
depreciated, net 2,853,398 - - (499,086) - 2,354,312
Dubuque Metropolitan Area
Solid Waste capital asset: $ 4,439,490 $
$ - $ 990,339 $ - $ 5,429,829
Depreciation expense of $607,170 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
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 $57,775,000. During Fiscal Year 2012, the City issued $1,935,000 to current refund one
outstanding issuance. The refunding was undertaken to expand debt service payment over life of project.
During Fiscal Year 2012, the City issued $32,000,000 of general obligation bonds for capital
improvements.
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, 2012, are as follows:
Purpose
Date of
Issue
Interest
Maturity Dates Rates
Corporate purpose
and refunding Series 2002C
Corporate purpose Series 2003
Corporate purpose Series 2005
Corporate purpose Series 2006A
Corporate purpose Series 2006B
Refunding Series 2006C
Corporate purpose
and refunding Series 2007B
Corporate purpose Series 2007A
Corporate purpose Series 2008A
Corporate purpose Series 2008B
Corporate purpose
(taxable) Series 2008C
Corporate purpose
(taxable) Series 2009A
Corporate purpose
(taxable) Series 2009B
Refunding Series 2009C
Corporate purpose
and refunding Series 2010A
Corporate purpose Series 2010B
Corporate purpose Series 2010C
Corporate purpose Series 2011A
Corporate pupose
(taxable) Series 2011B
Corporate purpose Series 2012A
Corporate purpose
and refund Series 2012B
Corporate pupose
(taxable) Series 2012C
Corporate pupose Series 2012D
12/03/02
10/15/03
04/18/05
04/03/06
04/03/06
04/03/06
06/01/03- 06/01/17
06/01/04- 06/01/23
06/01/06- 06/01/24
06/01/07- 06/01/25
06/01/07- 06/01/21
06/01/10-06/01/20
12/01/07 06 /01 /10- 06/01/17
12/01/07 06/01/09- 06/01/17
11/04/08 06/01/09- 06/01/28
11/04/08 06/01/09- 06/01/23
11/04/08 06/01/09- 06/01/18
11/10/09 06/01/11- 06/01/29
11/10/09 06/01/11- 06/01/29
11 /10 /09 06/01/10 - 06/01/21
08/30/10
08/30/10
08/30/10
09/01/11
06 /01 /11- 06/01/30
06/01/12- 06/01/30
06/01/12- 06/01/30
06/01/12- 06/01/31
09/01/11 06/01/13-06/01/26
03/15/12 06/01/14 - 06/01/31
03/15/12 06/01/13- 06/01/31
06/28/12 06/01/14 - 06/01/32
06/28/12 06/01/14 - 06/01/32
79
3.65 -4.30 %
3.40 -4.75
3.40 -5.00
3.80 -4.20
3.70 -4.20
3.70 -4.10
X3.75
3.45 -3.65
3.75 -4.80
3.75 -4.25
5.25 -5.50
1.90 -5.60
1.50 -5.50
2.00 -4.00
2.00 -3.00
1.00 -4.15
2.00 -3.00
2.00 -4.00
2.25 -4.35
2.00 -3.00
2.00 -3.13
2.00 -3.90
2.00 -3.46
Amount
Originally
Issued
Amount
Outstanding
End of Year
3,105,000
2,110,000
9,015,000
2,900,000
910,000
3,525,000
2,965,000
1,055,000
3,885,000
3,290,000
2,465,000
2,935,000
11,175,000
8,885,000
4,470,000
2,675,000
2,825,000
6,330,000
1,590,000
4,380,000
7,495,000
6,965,000
7,175,000
$ 102,125,000
950,000
1,325,000
6,020,000
2,235,000
615,000
3,015,000
1,960,000
625,000
3,350,000
2,610,000
2,025,000
2,690,000
10,270,000
6,870,000
4,210,000
2,585,000
2,710,000
6,330,000
1,590,000
4,380,000
7,495,000
6,965,000
7,175,000
$ 88,000,000
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 — LONG -TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year
June 30
2013
2014
2015
2016
2017
2018 -2022
2023 -2027
2028 -2032
Total
Governmental Activities
Principal Interest
$ 2,534,046 $ 1,854,094
3,719,859 1,747,770
3,861,367 1,629,218
3,978,689 1,503,173
4,124,502 1,363,231
17,708,822 4,680,064
9,744,358 2,363,679
7,079,829 679,524
$ 52,751,472 $ 15,820,753
Business -type Activities
Principal
Interest
$ 1,700,504
2,050,141
2,108,633
2,171,311
2,255,498
9,926,289
9,390,642
5,645,510
$ 35,248,528
$ 1,356,327
1,299,351
1,234,157
1,165,634
1,088,433
4,265,325
2,300,138
489,454
$ 13,198,819
Tax Increment Financing Bonds. The City issues tax increment financing bonds to provide funds for
urban renewal projects. The City pledges property tax revenues from the tax increment financing districts
to pay debt service. These bonds are generally issued as serial bonds with varying amounts of principal
maturing annually and with interest payable semi - annually. Tax increment financing bonds outstanding at
June 30, 2012, are as follows:
Purpose
Eagle Window & Door
Vessel Systems
Diamond Jo Parking Ramp
Date of
Issue
02/15/00
12/31/03
10/16/07
Interest
Maturity Dates Rates
12/31/02 - 06/30/12 9.1 %
12/30/05- 06/30/15 8.0
06/01/11- 06/01/37 7.5
80
Amount
Originally
Issued
Amount
Outstanding
End of Year
Current
Portion
$ 3,168,538
140,000
23,025,000
$ 26,333,538
53,9- 53 16,6- 17
22,435,000 330,000
$ 22,488,953 $ 346,617
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 — LONG -TERM DEBT (continued)
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Goven mental Activities
June 30 Principal Interest
2013 $ 346,617 $ 1,686,616
2014 372,973 1,660,510
2015 399,363 1,632,417
2016 410,000 1,602,750
2017 440,000 1,572,000
2018 - 2022 2,770,000 7,313,000
2023 -2027 3,950,000 6,110,625
2028 -2032 5,675,0W 4,409,375
2033 -2037 8,125,0W 1,918,500
Total $ 22,488,953 $ 27,905,793
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, 2012, are as follows:
Purpose
Water Utility Series 2008D
Water Utility Series 2010D
Amount Amount
Date of Interest Originally Outstanding
Issue Maturity Dates Rates Issued End of Year
11/04/08 06/01/10 - 06/01/23 3.00 -5.00 % $ 1,195,000 $ 985,000
09/21/10 06/01/12 - 06/01/30 2.00 -4.00 5,700,000 5,515,000
$ 6,895,000 $ 6,500,000
The Water Utility revenue debt covenants include a requirement for the utility to produce net revenues of
at least 125% of the current year debt service requirement of the revenue bonds and all other revenue
debt. During the year ended June 30, 2012, the City did not meet the revenue bond covenants for Water
Revenue Bonds by $423,890. Water Utility experienced higher than normal maintenance expenses due to
flood damage and a change in accrued employee compensation. Rates for Fiscal Year 2013 were
increased by 15 %. An additional rate increase is planned for Fiscal Year 2014. Water consumption for
the first 5 months of Fiscal Year 2013 is up approximately 5% over the same period in Fiscal Year 2012.
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 - LONG -TERM DEBT (continued)
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year
June 30
Business -type Activities
Principal Interest
2013
2014
2015
2016
2017
2018 -2022
2023 -2027
2028 -2030
Total
$ 260,000
270,000
275,000
285,000
295,000
1,645,000
2,025,000
1,445,000
$ 6,500,000
$ 231,458
224,945
218,045
210,825
202,260
855,518
528,625
117,400
$ 2,589,076
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, 2012, are as follows:
Purpose
Adams Company
Lower Main Development
Theisen Supply
40 Main LLC
44 Main LLC
Date of
Issue
02/13/04
06/30/04
11/22/06
08/06/09
10/26/10
Maturity Dates
06/01/05- 06/01/15
12/31/06- 06/30/16
12/31/08- 06/30/18
06/01/11 - 06/01/37
12/31/12- 06/30/27
Interest
Rates
4.07
8.00
8.25
6.50
6.00
Amount
Originally
Issued
% $ 500,000
182,000
810,323
690,529
337,000
$ 2,519,852
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year
June 30
2013
2014
2015
2016
2017
2018 -2022
2023 -2027
Governmental Activities
Amount
Outstanding Current
End of Year Portion
$ 136,364 $ 45,455
89,699 19,912
564,430 74,935
640,171 54,449
337,000 13,951
$ 1,767,664 $ 208,702
Principal Interest
$ 208,702 $ 116,805
221,043 102,965
234,541 88,533
203,250 73,213
191,827 58,166
560,806 122,601
147,496 25,773
Total $ 1,767,664 $ 588,055
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 — LONG -TERM DEBT (continued)
Capital Loan Notes. Revenue capital loan notes have been issued for the planning and construction of
sewer, stormwater, and water capital projects through the State of Iowa State Revolving Loan Funds. The
City has pledged income derived from the acquired or constructed assets to pay debt service.
Annual debt service requirements to maturity for capital loan notes are as follows:
The Sewage Disposal Works' revenue capital loan notes include a requirement for the utility to produce
net revenues of at least 110% of the current year debt service requirement. During the year ended June
30, 2012, the City was $404,774 under this requirement. Sewer utility experienced higher than normal
maintenance expenses due to flood damage and a change in accrued employee compensation. Rates for
Fiscal Year 2013 were increased by 15 %. An additional rate increase is planned for Fiscal Year 2014.
Water consumption for the first 5 months of Fiscal Year 2013 is up about 5% over the same period in
2012, this has a direct correlation with revenue increase in sewer.
Purpose
Upper Bee Branch Sewer
Clean Water
Drinking Water
North Catfish Creek Stormwater
North Catfish Creek Sewer
Water Meter Replacement
Upper Bee Branch Sewer
Water Pollution Control Plant
Amount
Date Final Interest Amount Outstanding Current
Authorized End of Year Portion
06/01 /30 3.25 % $ 1,657,821 $ 617,821 $ 32,517
06/01/28 3.25 1,847,000 1,555,000 75,000
06/01/28 3.25 1,037,000 771,000 37,000
06/01/30 3.25 998,000 741,000 39,000
06/01/30 3.25 1,141,000 621,371 32,704
06/01/30 3.25 8,676,000 6,116,000 238,000
06/01/41 3.25 7,850,000 5,992,929 315,417
06/01/39 3.25 64,885,000 45,542,627 1,686,764
$ 88,091,821 $ 61,957,748 $ 2,456,402
Authorized Maturity Date Rates
12/28/06
01/14/09
10/18/07
01/13/09
01/13/09
02/12/10
10/27/10
08/18/10
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year
June 30
2013
2014
2015
2016
2017
2018 -2022
2023 -2027
2028 -2032
2033 -2037
2038 -2039
Total
Business -type Activities
Principal Interest
$ 2,456,402
2,468,402
2,480,402
2,492,402
2,505,402
12,729,010
13,109,010
11,909,365
8,433,826
3,373,528
$ 61,957,749
$ 1,935,683
1,878,018
1,799,947
1,721,493
1,642,646
7,015,640
4,980,243
2,910,339
1,317,783
158,133
$ 25,359,925
At June 30, 2012, the City of Dubuque had $21,267,073 of capital loan note funds available. These funds
are available to the City by filing a disbursement request with the State of Iowa. The City expects to use
the remaining available funds by fiscal year 2014.
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 - LONG -TERM DEBT (continued)
Loans Payable. Loans payable have been issued to fund several City projects.
Amount
Originally
Issued
Date of Interest
Purpose Issue Maturity Dates Rates
Parking Lot Purchase 07 /08/08 01/01/09 - 07/01/23 5.0%
Building Purchase Agreement 02/01/10 02/01/10 - 02/01/16 0.0%
Iowa Finance Authority 08/26/11 06/01/20 - 06/01/30 3.0%
Amount
Outstanding
End of Year
$ 400,000
330,000
4,500,000
$ 5,230,000
$ 331,235
235,714
4,500,000
$ 5,066,949
Annual debt service requirements to maturity for loans payable are as follows:
Fiscal Year
June 30
Governmental Activities
Current
Portion
$ 21,931
47,143
$ 69,074
Business -type Activities
Principal Interest
Principal Interest
2013 $
2014
2015
2016
2017
2018 -2022
2023 -2027
2028 -2030
Total $
47,143
47,143
47,143
47,143
47,143
427,236
956,079
3,116,684
4,735,714
$ 135,000 $ 21,931 $ 16,291
135,000 23,041 15,181
135,000 24,208 14,014
135,000 25,433 12,790
135,000 26,721 11,501
662,374 155,319 35,792
549,141 54,582 2,752
256,804 - -
$ 2,143,319 $ 331,235 $ 108,321
84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 - LONG -TERM DEBT (continued)
Changes in Long -term Liabilities. Long -term liability activity for the year ended June 30, 2012, was as
follows:
Balance
Beginning Balance End Due Within
of Year Additions Reductions of Year One Year
Governmental activities:
General obligation bonds $ 32,271,022 $ 22,695,710 $ (2,215,260) $ 52,751,472 $ 2,534,046
Unaccretedpremium 499,185 123,990 (26,049) 597,126 -
Unamortized discounts (160,463) (71,689) 14,651 (217,501) -
Deferred amount on refunding (48,696) - 5,410 (43,286) -
Total general obligation bonds 32,561,048 22,748,011 (2,221,248) 53,087,811 2,534,046
Tax increment financing bonds 23,267,892 - (778,939) 22,488,953 346,617
Unamortized discounts (230,670) - - (230,670) -
Total tax increment financing bonds 23,037,222 - (778,939) 22 258,283 346,617
Notes payable 1,931,349 19,653 (183,338) 1,767,664 208,702
Loans payable 282,857 4,500,000 (47,143) 4,735,714 47,143
Compensated absences 2,746,993 5,366,044 (2,746,993) 5,366,044 194,134
Net OPEB liability 1,918,935 312,883 - 2,231,818 -
Total governmental activities $ 62,478,404 $ 32,946,591 $ (5,977,661) $ 89,447,334 $ 3,330,642
Bus ness -type activities:
General obligation bonds $ 25,503,978 $ 11,239,290 $ (1,494,740) $ 35,248,528 $ 1,700,504
Unaccretedpremium - 110,960 - 110,960 -
Unamortized discounts (169,113) (19,027) 8,012 (180,128) -
Deferred amount on refunding (80,213) - 8,856 (71,357) -
Total general obligation bonds 25,254,652 11,331,223 (1,477,872) 35,108,003 1,700,504
Revenue bonds 6,755,000 - (255,000) 6,500,000 260,000
Unaccretedpremium 32,114 - (1,605) 30,509 -
Unamortized discounts (9,321) - - (9,321) -
Total revenue bonds 6,777,793 - (256,605) 6,521,188 260,000
Capital loan notes 33,165,409 29,401,340 (609,000) 61,957,749 2,456,402
Loans payable 2,252,109 - (1,920,874) 331,235 21,931
Compensated absences 386,250 939,840 (386,250) 939,840 28,781
Net OPEB liability 416,362 62,230 - 478,592 -
Total business -type activities $ 68,252,575 $ 41,734,633 $ (4,650,601) $ 105,336,607 $ 4,467,618
85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 — LONG -TERM DEBT (continued)
For the governmental activities, compensated absences and net OPEB liability are generally liquidated by
the General Fund, Community Development Fund, and Section VIII Housing Fund.
Dubuque Initiatives and Subsidiaries. At December 31, 2011, 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.*
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.*
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. **
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. **
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. **
$ 5,294,384
5,518,841
5,897,192
5,897,192
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
30, 513, 225
Less: Current maturities (609,190)
Noncurrent liability 29 904 035
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 7 — LONG -TERM DEBT (continued)
The following is a schedule by years of the principal maturi ties of long -term debt obligations for the years
ending June 30:
2012 $ 609,190
2013 647,242
2014 686,692
2015 728,547
2016 772,491
Thereafter 27,069,063
30.513.225
* - Notes A, B, and D payable to Dubuque Bank & Trust are collateralized by a security agreement
dated June 22, 2009, a collateral assignment of tax credit purchase agreement dated June 22, 2009, and a
collateral assignment of fund loan documents dated June 22, 2009.
** - These notes payable to various entities are collateralized by, among other things, a certain Open -End
Mortgage, Assignment of Leases and Rents, Security Agreement, and Fixture Filing of even date
herewith executed by Borrower, as Mortgagor, to Administrative Agent, in its capacity as the
Administrative Agent for the Lenders and for the benefit of the Lenders, as Mortgagee, encumbering the
Property.
Forgivable loan. On February 19, 2009, the City of Dubuque was awarded a grant from the Iowa
Department of Economic Development in the amount of $450,000. The City of Dubuque awarded the
grant to Dubuque Initiatives & Subsidiaries to assist the Organization in starting the Roshek Building
project. The grant is a "forgivable loan ". The funds will be released on a reimbursement basis, upon the
City of Dubuque submitting paperwork to Iowa Department of Economic Development documenting
$450,000 in building related costs. On July 1, 2011, the Iowa Department of Economic Development
determined the project met the reimbursement requirements, therefore the loan was forgiven. The balance
of the forgivable loan was recorded as grant income at December 31, 2011.
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
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 $100,000, and an aggregate stop -loss of
$8,488,183 for 2012. 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 2012. Coverage from a private insurance company is maintained for losses in excess
of the stop -loss amount. All claims handling procedures are performed by a third -party claims
administrator. Incurred but not reported claims have been accrued as a liability based upon the claims
administrator's estimate. Settled claims have not exceeded commercial coverage in any of the past three
fiscal years. The estimated liability does not include any allocated or unallocated claims adjustment
expense. The City purchases private insurance to include sworn Police Officers and Fire Fighters
medical claims under a self- insured retention of $600,000 for each accident.
All funds of the City participates in both programs and makes payments to the Health Insurance Reserve
Fund and the Workers' Compensation Reserve Fund based on actuarial estimates of the amounts needed
to pay prior- and current -year claims. The claims liability of $386,900 in the Health Insurance Reserve
Fund and $1,137,168 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
fiscal years ended June 30, 2012 and 2011, are summarized as follows:
Health
Insurance
Reserve Fund
Liabilities at June 30, 2010 $ 479,770
Claims and changes in estimates during fiscal year 2011 6,457,672
Claim payments (6,674,473)
Liabilities at June 30, 2011 262,969
Claims and changes in estimates during fiscal year 2011 7,747,206
Claim payments (7,623,275)
Liabilities at June 30, 2012 $ 386,900
88
year of year end, for the
Workers'
Compensation
Reserve Fund
$ 907,610
1,042,820
(963,413)
987,017
1,092,653
(942,502)
$ 1,137,168
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 8 — RISK MANAGEMENT (continued)
The City is a member in the Iowa Communities Assurance Pool (Pool), as allowed by Chapter 670.7 of
the Code of Iowa. The Pool is a local government risk - sharing pool whose 668 members include various
governmental entities throughout the State of Iowa. The Pool was formed in August 1986 for the purpose
of managing and funding third -party liability claims against its members. The Pool provides coverage and
protection in the following categories: general liability, automobile liability, automobile physical damage,
public officials' liability, police professional liability, property, inland marine, and boiler /machinery. The
City acquires automobile physical damage coverage through the Pool. All other property, inland marine,
and boiler /machinery insurance is acquired through commercial insurance. There have been no reductions
in insurance coverage from prior years.
Each member's annual casualty contributions to the Pool fund current operations and provide capital.
Annual operating contributions are those amounts necessary to fund, on a cash basis, the Pool's general
and administrative expenses, claims, claims expenses, and reinsurance expenses due and payable in the
current year, plus all or any portion of any deficiency in capital. Capital contributions are made during the
first six years of membership and are maintained not to exceed 300 percent of the total current members'
basis rates or to comply with the requirements of any applicable regulatory authority having jurisdiction
over the Pool.
The Pool also provides property coverage. Members who elect such coverage make annual operating
contributions which are necessary to fund, on a cash basis, the Pool's general and administrative expenses
and reinsurance premiums, all of which are due and payable in the current year, plus all or any portion of
any deficiency in capital. Any year -end operating surplus is transferred to capital. Deficiencies in
operations are offset by transfers from capital and, if insufficient, by the subsequent year's member
contributions. The City has property insurance coverage in addition to the Pool.
The City's property and casualty contributions to the risk pool are recorded as expenditures from its
operating funds at the time of payment to the risk pool. The City's annual contributions to the Pool for the
year ended June 30, 2012, were $475,996.
The Pool uses reinsurance and excess risk - sharing agreements to reduce its exposure to large losses. The
Pool retains general, automobile, police professional, and public officials' liability risks up to $350,000
per claim. Excess coverage is provided for claims exceeding $350,000 under various reinsurance
agreements. Property and automobile physical damage risks are retained by the Pool up to $250,000 each
occurrence, each location, with excess coverage reinsured on an individual- member basis.
The Pool's Iowa Risk Management Agreement with its members provides that in the event a casualty
claim or series of claims exceeds the amount of risk - sharing protection provided by the member's risk -
sharing certificate, or in the event that a series of casualty claims exhausts total members' equity plus any
reinsurance and any excess risk - sharing recoveries, then payment of such claims shall be the obligation of
the respective individual member. As of June 30, 2012, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool's inception.
89
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 8 — RISK MANAGEMENT (continued)
Members agree to continue membership in the Pool through the Iowa Risk Management Agreement for a
period of not less than one full year. After such period, a member who has given 60 days' prior written
notice may withdraw from the Pool. Upon withdrawal, payments for all claims and claims expenses
become the sole responsibility of the withdrawing member, regardless of whether a claim was incurred or
reported prior to the member's withdrawal. Members withdrawing within the first six years of
membership may receive a partial refund of their capital contributions. If a member withdraws after the
sixth year, the member is refunded 100 percent of its capital contributions. However, the refund is
reduced by an amount equal to the annual operating contribution which the withdrawing member would
have made for the one -year period following withdrawal and Cumulative Reserve Fund distributions.
NOTE 9 — COMMITMENTS AND CONTINGENT LIABILITIES
Gra nts
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, 2012.
Litigation
The City's corporate counsel reported that as of June 30, 2012, 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.
In October 2010, during the initial stages of the City's Water Resource and Recovery Center's
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 required cleaning the trickling filter and its
contents by a process approved by the EPA and the IDNR. Miron Construction is seeking $500,000 from
the City. The City is seeking to recover $2 million. Liability for the costs of the spill is set to go to
arbitration in early 2013.
Tschiggfrie Excavating Co. has a claim for extra construction costs for the recently completed Lower Bee
Branch Sanitary Sewer Project. The claim is for $2.3 million and arbitration resumed December 2012.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2012. The City has additional commitments for signed construction contracts
of $23,313,369 as of June 30, 2012. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
90
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 9 — COMMITMENTS AND CONTINGENT LIABILITIES (continued)
Debt Guarantee
The City has guaranteed debt issued by Dubuque Initiatives and Subsidiaries related to the rehabilitation
of the Roshek Building. The guarantee is limited to $25,000,000.
Dubuque Initiatives & Subsidiaries
Roshek Building, Inc. anticipates receipt of State of Iowa Certified Historic Rehabilitation Tax Credits in
excess of $10,000,000 and Federal Certified Historic Rehabilitation Tax Credits in the excess of
$11,000,000. The funds will be used to retire debt. The State credits are subject to a completion of the
rehabilitation project by December 31, 2010. Both Federal and State credits were subject to successful
approval of the project by the State of Iowa and National Park Service, such approval has been received.
During 2011, $10,000,000 of the State credits was received. The Organization has approximately
$660,000 yet to receive of State credits.
Commitments
On June 20, 2012 the Dubuque Metropolitan Area Solid Waste Agency signed a contract to begin new
cell construction and other improvements in FY' 13 for $3,000,000.
NOTE 10 — EXTRAORDINARY ITEM
As discussed in Note 9 above, the City incurred costs in the sewer fund for a mercury spill $243,722 in
the Sewer Fund in current fiscal year and $2,253,036 in prior year. The mercury spill is reported as an
extraordinary item since the event was both unusual in nature and infrequent in occurrence.
NOTE 11— 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 include the
employees of the Dubuque Metropolitan Area Solid Waste Agency (a component unit). The Plan does not
issue a stand -alone financial report. The benefits are provided in the form of:
An implicit rate subsidy where pre -65 retirees receive health insurance coverage by paying a combined
retiree /active rate for the self - insured medical and prescription drug plan.
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 11— OTHER POSTEMPLOYMENT BENEFITS (OPEB) (continued)
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 522 active and 36 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,
2012, the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual re quire d contribution $ 570,443
Interest on net OPEB obligation 118,808
Adjustment to annual required contribution (105,247)
Annual OPEB cost 584,004
Contributions made, net of retiree contributions (201,200)
Increase in net OPEB obligation 382,804
Net OPEB obligation, beginning of year 2,376,162
Net OPEB obligation, end of year $ 2,758,966
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,
2012.
For the year ended June 30, 2012, the City paid $549,234 for retiree claims. Plan members eligible for
benefits contributed $348,034 or 100% of the premium costs. The net resulted in City contributions of
$201,200.
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 11— OTHER POSTEMPLOYMENT BENEFITS (OPEB) (continued)
The City's annual OPEB cost, the percentage of annual OPEB cost contributed to the plan and the net
OPEB obligation as ofJune 30, 2012 are summarized as follows:
Percentage of Net
Annual AnnualOPEB OPEB
Year Ended OPEB Cost Cost Contrbuted Obligation
June 30, 2012 $ 584,004 34.45% $ 2,758,966
June 30, 2011 581,536 25.60% 2,376,162
June 30, 2010 945,000 -8.30% 1,943,740
Funded Status and Funding Progress - As of July 1, 2010, the most recent actuarial valuation date for the
period July 1, 2011 through June 30, 2012, the actuarial accrued liability was $5,481,802, with no
actuarial value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $5,481,802. The
covered payroll (annual payroll of active employees covered by the plan) was approximately $31,183,497
and the ratio of the UAAL to covered payroll was 17.6 %. As ofJune 30, 2012, 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,
presents multiyear trend information about whether the actuarial value of plan assets is increasing or
decreasing over time relative to the actuarial accrued liabilities for benefits.
Projections of benefits for financial reporting purposes are based on the plan as understood by the
employer and the plan members and include the types of benefits provided at the time of each valuation
and the historical pattern of sharing of benefit costs between the employer and plan members to that point.
The actuarial methods and assumptions used include techniques that are designed to reduce the effects of
short -term volatility in actuarial accrued liabilities and the actuarial value of assets, consistent with the
long -term perspective of the calculations.
As of the July 1, 2010 actuarial valuation date, the projected unit credit actuarial cost method was used.
The actuarial assumptions include a 5% discount rate based on the City's funding policy. The projected
annual medical trend rate (inflation rate) is 10 %. The ultimate medical trend rate is 5 %. The medical
trend rate is reduced 1.0% each year until reaching the 5% ultimate trend rate. The underlying inflation
rate is 3 %.
Mortality rates are from the RP2000 Group Annuity Mortality Tables, applied on a gender- specific basis.
Annual retirement and termination probabilities were developed consistent with the City's experience and
the IPERS and MFPRSI retirement patterns. Annual turnover rates were based on Scale T -2 of the
actuary's pension handbook.
Projected claim costs of the medical plan are $8,440 per year for retirees. The salary increase rate was
assumed to be 3% per year. The UAAL is being amortized as a level percentage of pay on an open basis
over 30 years.
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 12 — 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 24.76% of earnable compensation. Contribution requirements are established by state statute.
The City's contributions to the Plan for the years ended June 30, 2012, 2011, and 2010, were $3,177,159,
$2,404,474 and $1,966,345, 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 5.38% of their annual covered salary, and the City is required to
contribute 8.07% of annual covered payroll. Contribution requirements are established by state statute.
The City's contributions to IPERS for the years ended June 30, 2012, 2011, and 2010, were $1,964,764,
$1,614,811 and $1,456,384, respectively, equal to the required contributions for each year.
NOTE 13 — LANDFILL CLOSURE AND POSTCLOSURE CARE
State and federal laws and regulations require the Agency to place a final cover on each cell of its landfill
site when filled and to perform certain maintenance and monitoring functions at the site for thirty years
after closure.
Although closure and post closure care costs will be paid only near or after the date that each cell stops
accepting waste, the Agency reports a portion of these closure and post closure care costs as an operating
expense in each period based on landfill capacity used as of each statement of net assets date. The
$4,106,246 reported as landfill closure and post closure care liability at June 30, 2012, 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 98% of the estimated capacity of cells 5, 6, 7, and 8. The Agency will recognize the
remaining estimated cost of closure and post closure care of $49,654 as the remaining capacity is filled.
These amounts are based on what it would cost to perform all closure and post closure care in 2012. The
Agency expects to close cells 5, 6, 7, and 8 in 2014. The Agency is making plans to construct a second
generation of cells to extend the life of the landfill to 2050. Actual cost may be higher due to inflation,
changes in technology, or changes in regulations.
94
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 13 — LANDFILL CLOSURE AND POSTCLOSURE CARE
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2012, funds have been restricted for closure and post
closure costs in the amount of $4,155,900.
NOTE 14— 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, 2012 is $7,011,465, with $142,423 of
depreciation expense during the year ended June 30, 2012. The DRA lease amount is based on the
association's gross gambling receipts. During the year ended June 30, 2012, the DRA lease generated
$6,043,346 in lease revenue.
NOTE 15 — SUBSEQUENT EVENTS
On October 15, 2012, the City approved an agreement to terminate a lease with Bowling & Beyond
Dubuque, Inc. for property located at 1860 Hawthorne Street for the sum of $1,000,000, without interest,
payable $50,000 on December 5, 2012 and $50,000 each year on December 5 for nineteen consecutive
years, final payment in 2031.
On October 15, 2012, the City authorized $950,000 General Obligation Refunding Bonds, Series 2012G.
The bonds were used to refinance General Obligation Bonds, Series 2002C and will save the City
$77,000 in interest over the next four years. The interest rate on the bonds range from 1% to 1.25 %, with
a maturity date of June 1, 2017.
On November 5, 2012, the City authorized $7,285,000 Taxable General Obligation Refunding Bonds,
Series 2012I. The bonds were used to purchase U.S. Treasury Obligations ( "Investments ") and placed in
an escrow account to defease 2005C, 2006B, 2006C, and 2007B Bonds. The interest rate on the bonds
range from .3 % -2.2 %, with a maturity date is June 1, 2021.
On November 5, 2012, the City authorized $3,640,000 of General Obligation Bonds, Series 2012E. The
Bonds will provide funds to pay costs of Southwest Arterial Project; installation of 1,200 feet of storm
sewer in conjunction with the reconstruction of 7th Street from Iowa Street to Shot Tower Drive; repair of
the 30 inch diameter sanitary sewer force main from the Cedar Street lift station to the Terminal Street
lift station; Comiskey Park improvements including park amenity replacements and additions, new entry
and gathering space, and replacement of the exterior doors; replacement of the playground equipment
structure for ages two through five year -olds in Flora Park; Water System Improvements; replacement of
Public Safety software; Granger Creek Trail at Technology Park South; development of Creek Wood Park
in the Timber -Hyrst subdivision off Manson Road; development of the remainder of Westbrook Park in
the Westbrook Subdivision on Seippel Road next to Dubuque Industrial Center West; maintenance on
Parks buildings; Library interior and exterior repairs; and replacement play equipment for Marshall
School on Rhomberg Avenue, which will continue the City's partnership with the Dubuque Community
School District to provide playground equipment at schools that do not have parks close to them. The
interest rate on the bonds range from 2% to 3 %, with a maturity date of June 1, 2032.
95
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 15 — SUBSEQUENT EVENTS (continued)
On November 5, 2012 the City authorized $1,035,000 of Taxable General Obligation Bonds, Series
2012F. The Bonds will provide funds to pay costs associated with grants in the Greater Dubuque Urban
Renewal District for planning /design costs and facade improvements associated with projects that do not
apply for the Downtown Rehabilitation Loan Program; grants in the Greater Downtown Urban Renewal
District for hiring a financial consultant based on the anticipated increase in projects to analyze the
feasibility of projects that apply for the Downtown Rehabilitation Loan Program; loans /grants to new
small businesses that may need additional assistance to start up their business in the Downtown
Washington Neighborhood; improvements to the Mystique Community Ice Center including air
conditioning, electrical improvements, ice decking, power factor correction device and generator; grants
for rehabilitation and adaptive reuse of buildings in the Greater Downtown Urban Renewal District; funds
to assist property owners in the Downtown Renewal Area in making structural changes that make their
properties more accessible; and funds for an annual streetscape improvement program for historic districts
located in targeted neighborhoods. The interest rate on the bonds range from 1% to 2.20 %, with a
maturity date of June 1, 2022.
On November 5, 2012 the City authorized $2,385,000 of General Obligation Urban Renewal Bonds,
Series 2012H. The Bonds will provide funds to pay costs associated with a consultant to determine
where the City should acquire properties for industrial growth; costs associated with the rail platform
improvements for the Intermodal Center; renovation of second floor of the Multicultural Family Center as
well as reconfiguration of the main entrance to the building, meeting rooms on first floor, installation of
an elevator and a fire sprinkler system, a restroom that is Americans with Disabilities Act (ADA)
compliant at 5th and Bluff; and constructing sidewalks at the McAleece Park and Recreation Complex.
The interest rate on the bonds range from 2% to 3 %, with a maturity date of June 1, 2032
The Airport is currently undertaking the completion of an approximately $40 million Airline Terminal
Facility. This project involves the construction of site work, new terminal building, entrance road,
parking lot, access road, utilities, and terminal apron. Contracts for the construction of the terminal
building and terminal apron were signed in September, 2012. The entire project is scheduled to be
completed in 2015 -16. The majority of funding for this project is provided by federal grants from the
FAA with additional funding from State of Iowa grants, Customer Facility Charges, Passenger Facility
Charges and local funds.
NOTE 16 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) has issued nine statements not yet implemented
by the City. The statements which might impact the City, are as follows:
Statement No. 60, Accounting and Financial Reporting for Service Concession Arrangements, issued
November 2010, will be effective for the fiscal year ending June 30, 2013. The objective of this Statement
is to improve financial reporting by addressing issues related to service concession arrangements.
Statement No. 61, The Financial Reporting Entity: Omnibus — an amendment of GASB Statements No.
14 and No. 34; issued November 2010, will be effective for the fiscal year ending June 30, 2013. The
objective of this Statement is to improve financial reporting for a governmental financial reporting entity.
Statement No. 62, Codification of Accounting and Financial Reporting Guidance Contained in Pre -
November 30, 1989 FASB and AICPA Pronouncements; issued December 2010, will be effective for the
96
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2012
NOTE 16— PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
fiscal year ending June 30, 2013. The objective of this Statement is to incorporate into the GASB's
authoritative literature certain accounting and financial reporting guidance.
Statement No. 63, Financial Reporting of Deferred Outflows of Resources, Deferred Inflows of
Resources, and Net Position, issued June 2011, will be effective for the fiscal year ending June 30, 2013.
This Statement amends the net asset reporting requirements in Statement No. 34, Basic Financial
Statements and Management's Discussion and Analysis for State and Local Governments, and other
pronouncements by incorporating deferred outflows of resources and deferred inflows of resources into
the definitions of the required components of the residual measure and by renaming that measure as net
position, rather than net assets.
GASB Statement No. 64, Derivative Instruments: Application of Hedge Accounting Termination
Provisions, issued in June 2011, will be effective for the City beginning with its year ending June 30,
2013. The objective of this Statement is to clarify whether an effective hedging relationship continues
after the replacement of a swap counterparty or a swap counterparty's credit support provider. This
Statement sets forth criteria that establish when the effective hedging relationship continues and hedge
accounting should continue to be applied.
Statement No. 65, Items Previously Reported as Assets and Liabilities, issued March 2012, will be
effective for the fiscal year ending June 30, 2014. The objective of this Statement is to establish
accounting and financial reporting standards that reclassify, as deferred outflows of resources or deferred
inflows of resources, certain items that were previously reported as assets and liabilities and recognizes,
as outflows of resources or inflows of resources, certain items that were previously reported as assets and
liabilities.
Statement No. 66, Technical Corrections — 2012 — an amendment of GASB Statements No. 10 and No.
62, issued March 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this
Statement is to improve accounting and financial reporting for a governmental financial reporting entity
by resolving conflicting guidance that resulted from the issuance of two pronouncements, Statements No.
54, Fund Balance Reporting and Governmental Fund Type Definitions, and No. 62, Codification of
Accounting and Financial Reporting Guidance Contained in Pre - November 30, 1989 FASB and AICPA
Pronouncements.
Statement No. 67, Financial Reporting for Pension Plans — an amendment of GASB Statement No. 25,
issued June 2012, will be effective for the fiscal year ending June 30, 2014. The objective of this
Statement is to establish accounting and financial reporting requirements related to pensions for
governments whose employees are provided with pensions through pension plans that are covered by the
scope of this Statement, as well as for nonemployer governments that have a legal obligation to contribute
to those plans.
Statement No. 68, Accounting and Financial Reporting for Pensions — an amendment of GASB Statement
No. 27, issued June 2012, will be effective for the fiscal year ending June 30, 2015. The objective of this
Statement is to improve information provided by state and local governmental employers about financial
support for pensions that is provided by other entities.
The City's management has not yet determined the effect these statements will have on the City's
financial statements.
97
98
Required Supplementary Information
June 30, 2012
City of Dubuque, Iowa
99
CITY OF DUBUQUE, IOWA
SCHEDULE OF RECEIPTS, DISBURSEMENTS AND CHANGES IN
BALANCES - BUDGET AND ACTUAL (BUDGETARY BASIS)
GOVERNMENTAL AND ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
RECEIPTS
Property tax
Tax increment financing
Other City tax
Licenses and permits
Use of money and property
Intergovernmental
Charges for fees and service
Special assessments
Miscellaneous
Total Receipts
EXPENDITURES
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
Capital projects
Business -type activities
Total Expenditures
Actual
$ 20,621,563
9,590,342
13,435,863
2,260,944
12,449,303
48,142,384
24,672,064
413,400
10,060,015
141,645,878
Budgeted Amounts Final to Actual
Original Final Variance
$ 20,559,847
10,151,097
14,904,342
1,254,672
12,639,846
33,190,214
32,758,317
244,100
6,556,190
132,258,625
$ 20,559,847 $ 61,716
10,151,097 (560,755)
14,904,342 (1,468,479)
1,254,672 1,006,272
12,834,532 (385,229)
86,786,356 (38,643,972)
32,838,902 (8,166,838)
1,878,335 (1,464,935)
8,147,541 1,912,474
189,355,624 (47,709,746)
24,557,646 24,073,368 24,851,798 294,152
11,544,396 11,669,809 12,077,963 533,567
865,604 914,521 1,014,042 148,438
10,093,940 9,891,483 10,394,551 300,611
12,786,052 13,006,091 12,904,361 118,309
6,834,175 6,912,736 7,165,386 331,211
6,080,944 7,019,294 6,934,294 853,350
42,463,206 32,035,166 100,173,594 57,710,388
73,925,208 76,139,146 120,130,864 46,205,656
189,151,171 181,661,614 295,646,853 106,495,682
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES (47,505,293)
OTHER FINANCING SOURCES, NET 69,884,233
EXCESS (DEFICIENCY) OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
BALANCE, BEGINNING OF YEAR
BALANCE, ENDING OF YEAR
See Note to Required Supplementary Information.
22,378,940
47,832,164
$ 70,211,104
100
(49,402,989) (106,291,229) 58 85936
45,830,037
(3,572,952)
48,278,154
$ 44,705,202
80,699,672 (10,815,439)
(25,591,557) 47,970,497
20,595,247
$ (4,996,310) $ 47,970,497
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2012
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, 2012 was amended two times during the year to allow the
City to increase function expenditures by $113,985,239, primarily for the carry- forward of unfinished
capital improvement projects and expenditure of additional grants for capital improvements.
During the year ended June 30, 2012, disbursements in the debt services function exceeded the amount
budgeted, due to refunding bond principal payment that was not included in the budget amendment.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Receipts/Revenue
Expenditures/Expenses
Deficiency of Receipts/Revenue
Under Expenditures/Expenses
Other Financing Sources
Net
Balance, Beginning
Balance, Ending
Budgetary
Basis
Accrual
Adustments
Modified
AccruaVAccrual
Basis
Governmental
Funds
Modified
Accrual Basis
Enterprise
Funds
Accrual
Basis
Total
$ 141,645,878 $ (5,179,100) $ 136,466,778 $ 106,201,154 $ 30,265,624 $ 136,466,778
189,151,171 (51,588,747)
137,562,424 107,043,216 30,519,208 137,562,424
(47,505,293) 46,409,647 (1,095,646) (842,062) (253,584) (1,095,646)
69,884,233 (44,234,838) 25,649,395 20,058,750 5,590,645 25,649,395
22,378,940 2,174,809 24,553,749 19,216,688 5,337,061 24,553,749
47,832,164 139,761,318 187,593,482 49,069,411 138,524,071 187,593,482
$ 70,211,1(4 $ 141,936,127 $ 212,147,231 $ 68,286,099 $ 143,861,132 $ 212,147,231
101
CITY OF DUBUQUE, IOWA
SCHEDULE 01' FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN
FOR THE YEAR ENDED JUNE 30, 2012
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)
2010 7/1/2008 $ - $ 9,117,000 $ 9,117,000 0.0% $ 31,430,000 29.01%
2011 7/1/2010 - 5,481,802 5,481,802 0.0% 29,790,517 18.40%
2012 7/1/2010 5,481,802 5,481,802 0.0% 31,183,497 17.60%
102
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.
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.
103
104
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.
105
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Road Section VIII Tort
Use Tax Housing Liability
ASSETS
Cash and pooled cash investments $ 982,388 $ 526,999 $ -
Receivables
Property tax
Delinquent - - 4,038
Succeeding year - - 294,491
Accounts and other - 17,774 -
Special assessments - - -
Accrued interest - 1,444 -
Notes - 282 -
Intergovernmental 484,568 - -
Inventory 951,910 - -
Prepaid items - - -
Restricted cash and pooled cash investments - 25,217 -
Total Assets $ 2,418,866 $ 571,716 $ 298,529
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable 50,070 30,135
Accrued payroll 29,677 3,343
Intergovernmental payable - 4,293 -
Deferred revenue
Succeeding year property tax - - 294,491
Other 81,346 - 541
Total Liabilities 161,093 37,771 295,032
FUND BALANCES
Nonspendable:
Endowment corpus - - -
Inventory 951,910 - -
Long -term notes receivable - 252 -
Prepaid items - - -
Restricted:
Endowments - - -
Lbrary - - Debt service - - -
Capital improvements 1,305,863 - -
Franchise agreement - - -
Special assessments - - -
Claims - - 3,497
Iowa Finance Authority trust - - -
Community programs - 963,037 -
Committed, capital improvements - - -
Unassigned - (429,344) -
Total Fund Balances 2,257,773 533,945 3,497
Total Liabilities and Fund Balances $ 2,418,866 $ 571,716 $ 298,529
106
EXHIBIT A -1
Special Revenue Funds
Library IFA
Special Expendable Housing Debt
Assessments Cable TV Gifts Trust Trust Service
$ 1,389 $ 98,562 $ 1,237,573 $ 250,892 $ 163,223
1,259
- - - - 65,732
- 152,084
790,879 -
316 342 2,850 - 3,815
■
$ 792,584 $ 250,988 $ 1,240,423 $ 250,892 $ 234,029
3,505
1,088
11,729
■
■
- - - - 65,732
547,366 - - - 156
547,366 4,593 11,729 - 65,888
245,2- 18
■
1,228,694
■
- - - 168,141
246,3- 95 - - -
■
■
250,892
■
245,218 246,395 1,228,694 250,892 168,141
$ 792,584 $ 250,988 $ 1,240,423 $ 250,892 $ 234,029
107
(Continued)
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2012
Capital Projects Funds
Airport Sales Tax
Construction Construction
ASSETS
Cash and pooled cash investments $ 3,277,813 $ 2,652,240
Receivables
Property tax
Delinquent - -
Succeeding year - -
Accounts and other - -
Special assessments - -
Accrued interest 1,125 2,490
Notes - 657,518
Intergovernmental 1,189,675 1,346,043
Inventory -
Prepaid items - 11,416
Restricted cash and pooled cash investments
Total Assets $ 4,468,613 $ 4,669,707
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 1,242,840 $ 734,222
Accrued payroll - -
Intergovernmental payable - Deferred revenue
Succeeding year property tax - -
Other 244,268 1,092,591
Total Liabilities 1,487,108 1,826,813
FUND BALANCES
Nonspendable:
Endowment corpus
Inventory
Long -term notes receivable
Prepaid items - 11,416
Restricted:
Endowments - -
Lbrary - Debt service - -
Capital improvements 2,981,505 -
Franchise agreement - -
Special assessments - -
Claims - -
Iowa Finance Authority trust - -
Community programs - -
Committed, capital improvements - 2,831,478
Unassigned - -
Total Fund Balances 2,981,505 2,842,894
Total Liabilities and Fund Balances $ 4,468,613 $ 4,669,707
108
EXHIBIT A -1
(Continue d)
Permanent Funds Total
Ella Lyons Library Nonmajor
Peony Trail Gifts Governmental
Trust Trust Funds
$ - $ 9,191,079
5,297
360,223
169,858
790,879
1- 94 28 12,604
657,800
- - 3,020,286
951,910
11,416
123,5- 87 12,2- 35 161,039
$ 123,781 $ 12,263 $ 15,332,391
$ - $ - $ 2,072,501
34,108
4,293
360,223
1,966,268
4,437,393
57,412 12,000 69,412
951,910
252
11,416
66,369 263 66,632
- - 1,228,694
168,141
- - 4,287,368
246,395
245,218
3,497
250,892
963,037
- - 2,831,478
- - (429,344)
123,781 12,263 10,894,998
$ 123,781 $ 12,263 $ 15,332,391
109
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
Road Section VIII Tort
Use Tax Housing Liability
REVENUES
Taxes $ - $ -
Special assessments -
Intergoverrnmental 5,438,531 3,685,577
Charges for services - -
Investment earnings 462 10,007
Contrbutions
Miscellaneous 56,338 26,267
Total Revenues 5,495,331 3,721,851
EXPENDITURES
Governmental activities
Current
Public works 4,406,853 -
Culture and recreation -
Community and economic development - 4,458,363
General government 15,286
Debt service
Principal - -
Interest and fiscal charges - -
Capital projects
Total Expenditures 4,422,139 4,458,363
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDIITURES
$ 391,776
391,776
1,073,192 (736,512) 391,776
OTHER FINANCING SOURCES (USES)
Issuance of debt - - -
Premium on bonds - - -
Issuance of refunding bonds - - -
Refunded bonds redeemed - -
Transfers in 440,767 139,115 -
Transfers out (81,091) - (396,399)
Total Other Financing Sources (Uses) 359,676 139,115 (396,399)
NET CHANGE IN FUND BALANCES 1,432,868 (597,397) (4,623)
FUND BALANCES, BEGINNING 824,905 1,131,342 8,120
FUND BALANCES, ENDING
110
$ 2,257,773 $ 533,945 $ 3,497
EXHIBIT A -2
Special Revenue
Lbrary IFA
Special Expendable Housing Debt
Assessments Cable TV Gifts Trust Trust Service
$ - $ - $
596,138 -
- - 2,2- 69
33,482 2,789 15,019
- - 1,018,198
9,968 607,354 64,434
639,588 610,143 1,099,920
684,104
76,7- 39
$
■
160,088
■
$ 137,089
27,195
15,8- 35
■
■
180,119
- - - 1,130,260
- - - 558,712
684,1- 04 76,7- 39 160,088 1,688,972
639,588 (73,961) 1,023,181 (160,088) (1,508,853)
■
1,561,386
(424,2%) - - - -
(424,2%) - - - 1,561,386
215,298 (73,961) 1,023,181 (160,08) 52,533
29,920 320,356 205,513 410,980 115,60
$ 245,218 $ 246,395 $ 1,228,694 $ 250,892 $ 168,141
111
(Continued)
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
Capital Projects
Airport Sales Tax
Construction Construction
REVENUES
Taxes $ $ 1,593,201
Special assessments -
Intergovernmental 3,323,680 1,765,132
Charges for services 196,585 -
Investmentlt earnings 16,196 12,814
Contributions 9,927 8,867
Miscellaneous 1,205
Total Revenues 3,547,593 3,380,014
EXPENDITURES
Governmental activities
Current
Public works
Culture and recreation -
Community and economic development -
General government -
Debt service
Principal -
Interest and fiscal charges -
Capital projects 4,125,360 4,434,867
Total Expenditures 4,125,360 4,434,867
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES (577,767) (1,054,853)
OTHER FINANCING SOURCES (USES)
Issuance of debt 2,235,000 1,995,350
Premium on bonds 446 40,037
Issuance of refunding bonds -
Refunded bonds redeemed -
Transfers in 122,671 242,183
Transfers out - (111,157)
Total Other Financing Sources (Uses) 2,358,117 2,166,413
NET CHANGE IN FUND BALANCES 1,780,350 1,111,560
FUND BALANCES, BEGINNING 1,201,155 1,731,334
FUND BALANCES, ENDING $ 2,981,505 $ 2,842,894
112
EXHIBIT A -2
(Continue d)
Permanent Funds
Ella Lyons
Peony Trail
Trust
Library
Gifts
Trust
Total
Nonmajor
Goveinuental
Funds
$ - $
15,185
195
15,185 195
1,070
1,070
14,115 195
14,115 195
109,666 12,068
$ 2,122,066
596,138
14,240,115
198,854
121,984
1,036,992
765,566
19,081,715
4,406,853
77,809
4,618,451
699,390
1,130,260
558,712
8,560,227
20,051,702
(969,987)
4,230,350
40,483
2,506,122
(1,012,937)
5,764,018
4,794,031
6,100,967
$ 123,781 $ 12,263 $ 10,894,998
113
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are financed and operated in a manner similar to
private business enterprises -- where the intent of the City Council is that the costs of providing goods or
services to the general public on a continuing basis be financed or recovered primarily through user
charges; or where the City Council has decided that periodic determination of net income is appropriate
for accountability purposes.
Refuse Collection Fund — This fund is used to account for the operations of the City's refuse
collection services.
Transit System Fund — This fund is used to account for the operations of the City's bus and other
transit services.
Salt Fund — This fund is used to account for the operations of the City's salt distribution.
114
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2012
EXHIBIT B -1
ASSETS
Refuse Transit
Collection System
Sa
Total Other
Enteipi ise
Funds
CURRENT ASSETS
Cash and pooled cash investments $ 1,240,103 4550152 $ - $ 5,790,255
Receivables
Accounts 280,653 694 55,922 337,269
Accrued interest 2,563 - 338 2,901
Intergovernmental - 670,387 - 670,387
Total Current Assets 1,523,319 5,221,233 56,260 6,800,812
NONCURRENT ASSETS
Capital assets
Land - 36,000 - 36,000
Buildings - 1,887,564 175,458 2,063,022
Machinery and equipment 1,935,332 6,214,150 36,342 8,185,824
Construction in progress - 648,587 - 648,587
Accumulated depreciation (1,166,843) (3,476,229) (2,221) (4,645,293)
Net Capital Assets 768,489 5,310,072 209,579 6,288,140
Total Noncurrent Assets 768,489 5,310,072 209,579 6,288,140
Total Assets
LIABILITIES
2,291,808 10,531,305 265,839 13,088,952
CURRENT LIABILITIES
Accounts payable 8,166 35,546 12,110 55,822
Accrued payroll 21,547 25,120 - 46,667
General obligation bonds payable - current 3,934 - - 3,934
Accrued compensated absences 15,573 - - 15,573
Accrued interest payable 273 - - 273
Due to other funds - - 142,408 142,408
Total Current Liabilities 49,493 60,666 154,518 264,677
NONCURRENT LIABILITIES
General obligation bonds payable (net of
premium of $460) 99,526 - - 99,526
Accrued Compensated Absences 267,034 3,346 - 270,380
Net OPEB liability 113,060 33,543 - 146,603
Total Noncurrent Liabilities 479,620 36,889 - 516,509
Total Liabilities
529,113 97,555 154,518 781,186
NET ASSETS
Invested in capital assets, net of related debt 665,087 5,310,072 209,579 6,184,738
Unrestricted 1,097,608 5,123,678 (98,258) 6,123,028
Total Net Assets $ 1,762,695 $ 10,433,750 $ 111,321 $ 12,307,766
115
CITY OF DUBUQUE, IOWA EXHIBIT B -2
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
Refuse Transit
Collection System
Salt
Total Other
Enteipiise
Funds
OPERATING REVENUES
Charges for sales and services $ 3,254,593 $ 181,648 $ 665,942 $ 4,102,183
Other 3,367 97,187 - 100,554
Total Operating Revenues 3,257,960 278,835 665,942 4,202,737
OPERATING EXPENSES
Employee expense 2,065,770 1,441,259 - 3,507,029
Utilities 16,195 44,588 - 60,783
Repairs and maintenance 319,762 216,454 4,301 540,517
Supplies and services 670,863 1,300,172 653,373 2,624,408
Insurance 21,983 33,241 1,500 56,724
Depreciation 75,372 594,036 2,221 671,629
Total Operating Expenses 3,169,945 3,629,750 661,395 7,461,090
OPERATING INCOME (LOSS) 88,015 (3,350,915) 4,547 (3,258,353)
NONOPERATING REVENUES
Intergovernmental 22,513 4,614,091 - 4,636,604
Investment earnings 19,175 3,500 65 22,740
Interest expense (3,130) - - (3,130)
Gain (loss) on disposal of assets - (124,236) 2,956 (121,280)
Net Nonoperating Revenues 38,558 4,493,355 3,021 4,534,934
INCOME (LOSS) BEFORE TRANSFERS
126,573 1,142,440 7,568 1,276,581
TRANSFERS IN - 5,331,595 - 5,331,595
TRANSFERS OUT (19,000) (192,173) - (211,173)
CHANGE IN NET ASSETS 107,573 6,281,862 7,568 6,397,003
NET ASSETS, BEGINNING 1,655,122 4,151,888 103,753 5,910,763
NET ASSETS, ENDING $ 1,762,695 $ 10,433,750 $ 111,321 $ 12,307,766
116
COMBINING CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2012
EXHIBIT B -3
Refuse Transit
Collection System
Salt
Total Other
Enterprise
Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,306,835 $ 181,728 $ 610,020 $ 4,098,583
Cash payments to suppliers for goods and services (1,030,314) (1,554,808) (647,064) (3,232,186)
Cash payments to employees for services (1,932,188) (1,483,488) (3,415,676)
Other operating receipts 3,367 97,187 100,554
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 347,700 (2,759,381) (37,044) (2,448,725)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds 5,331,595 - 5,331,595
Transfers to other funds (19,000) (192,173) (211,173)
Proceeds from interfund balances - 142,408 142,408
Payment ofinterfund balances (107,173) (107,173)
Intergovernmental grant proceeds 22,513 5,704,609 5,727,122
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES 3,513 10,736,858 142,408 10,882,779
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 74,777 2,956 77,733
Acquisition and construction of capital assets (533,983) (3,505,702) (211,800) (4,251,485)
Proceeds from issuance of debt 35,780 - 35,780
Premium from debt issuance 460 - - 460
Principal Paid (2,787) - - (2,787)
Interest paid (3,040) - - (3,040)
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES (503,570) (3,430,925) (208,844) (4,143,339)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 20,882 3,500 65 24,447
NET CASH PROVIDED BY INVESTING ACTIVITIES 20,882 3,500 65 24,447
NET INCREASE IN CASH AND CASH EQUIVALENTS (131,475) 4,550,052 (103,415) 4,315,162
CASH AND CASH EQUIVALENTS, BEGINNING 1,371,578 100 103,415 1,475,093
CASH AND CASH EQUIVALENTS, ENDING $ 1,240,103 $ 4,550,152 $ - $ 5,790,255
117
(Continued)
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS EXHIBIT B -3
NONMAJOR ENTERPRISE FUNDS (continued)
YEAR ENDED JUNE 30, 2012
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss)
Business -type Activities - Enterprise Funds
Refuse Transit
Collection System
Salt
Total Other
Enterprise
Funds
$ 88,015 $ (3,350,915) $ 4,547 $ (3,258,353)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 75,372 594,036 2,221 671,629
Change in assets and liabilities
Decrease in receivables 52,242 80 (55,922) (3,600)
(Increase) in inventories and prepaid items 28,245 28,245
(Decrease) in accounts payable (1,511) 11,402 12,110 22,001
(Decrease) in accrued liabilities 119,598 (46,424) - 73,174
Increase in net OPEB liability 13,984 4,195 18,179
Total Adjustments 259,685 591,534 (41,591) 809,628
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 347,700 $ (2,759,381) $ (37,044) $ (2,448,725)
Amortization of bond discount $ 3 $ - $ - $ 3
118
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.
119
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET ASSETS
INTERNAL SERVICE FUNDS
JUNE 30, 2012
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ - $ 32,335 $ -
Receivables
Accounts - - -
Accrued interest - - -
Inventories - 69,906 8,063
Total Current Assets - 102,241 8,063
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
LIABILITIES
101,738
(70,280)
31,458
31,458
133,699 8,063
CURRENT LIABILITIES
Accounts payable - 22,727
Accrued payroll 18,902 12,708 -
Due to other funds 1,991 - 4,436
Total Current Liabilities 20,893 35,435 4,436
Total Liabilities
20,893 35,435 4,436
NET ASSETS
Invested in capital assets, net of related debt - 31,458 -
Unrestricted (20,892) 66,806 3,626
TotalNet Assets (Deficit) $ (20,892) $ 98,264 $ 3,626
120
Exhibit C -1
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 2,117,739 $ 104,222 $ 2,254,296
18,408 - 18,408
1,285 219 1,504
- - 77,969
2,137,432 104,441 2,352,177
101,738
(70,280)
31,458
31,458
2,137,432 104,441 2,383,635
386,900 1,137,168 1,546,795
- - 31,610
- - 6,427
386,900 1,137,168 1,584,832
386,900 1,137,168 1,584,832
- - 31,458
1,750,533 (1,032,728) 767,345
$ 1,750,533 $ (1,032,728) $ 798,803
121
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET ASSETS (DEFICIT)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2012
General Garage Stores/
Service Service Printing
OPERATING REVENUES
Charges for sales and services $ 2,007,208 $ 2,146,319 $ 17,202
Other - 40,576 -
Total Operating Revenues 2,007 208 2,186,895 17 202
OPERATING EXPENSES
Employee expense 1,992,575 838,934 -
Utilities - 23,117 -
Repairs and maintenance - 30,501 -
Supplies and services 4,875 1,322,681 20,040
Insurance 10,534 15,966 -
Depreciation - 7,565
Total Operating Expenses 2,007,984 2,238,764 20,040
OPERATING INCOME (LOSS)
(776) (51,869) (2,838)
NONOPERATING REVENUES
Investment earnings - - -
INCOME (LOSS) BEFORE TRANSFERS (776) (51,869) (2,838)
TRANSFERS IN - - -
CHANGE IN NET ASSETS (776) (51,869) (2,838)
NET ASSETS (DEFICIT), BEGINNING (20,116) 150,133 6,464
NET ASSETS (DEFICIT), ENDING $ (20,892) $ 98,264 $ 3,626
122
EXHIBIT C -2
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 6,332,684 $ 757,005 $ 11,260,418
40,576
6 332,684 757 005 11,300,994
- - 2,831,509
23,117
30,501
7,623,275 942,502 9,913,373
79,050 105,550
7,565
7,702,325 942,502 12,911,615
(1,369,641) (185,497) (1,610,621)
11,290 6,422 17,712
(1,358,351) (179,075) (1,592,909)
2,111,912 100,000 2,211,912
753,561 (79,075) 619,003
996,972 (953,653) 179,800
$ 1,750,533 $ (1,032,728) $ 798,803
123
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2012
General Garage Stores/
Service Service Printing
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,007,208 $ 2,146,319 $ 17,202
Cash payments to suppliers for goods and services (15,409) (1,405,635) (21,652)
Cash payments to employees for services (1,996,290) (862,330)
Other operating receipts - 40,576
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES (4,491) (81,070) (4,450)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds - - -
Payment of interfund balances 1,991 - 4,436
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES 1,991 - 4,436
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received
NET INCREASE (DECREASE) IN CASH AND
CASH EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
(2,500) (81,070)
2,500 113,405
$ - $ 32,335 $
(14)
14
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating (loss) $ (776) $ (51,869) $ (2,838)
Adjustments to reconcile operating (loss) to net
cash provided by (used for) operating activities
Depreciation - 7,565 -
Change in assets and liabilities
(Increase) Decrease in receivables - - -
(Increase) Decrease in inventories and prepaid items - (5,508) (1,611)
Increase (decrease) in accounts payable - (7,862) (1)
(Decrease) in accrued liabilities (3,715) (23,396) -
Total Adjustments (3,715) (29,201) (1,612)
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ (4,491) $ (81,070) $ (4,450)
124
EXHIBIT C -3
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 6,497,110 $ 757,005 $ 11,424,844
(7,529,799) (792,351) (9,764,846)
- - (2,858,620)
- - 40,576
(1,032,689) (35,346) (1,158,046)
2,111,912 100,000 2,211,912
■
- 6,427
2,111,912 100,000 2,218,339
13,363 6,312 19,675
1,092,586 70,966 1,079,968
1,025,155 33,255 1,174,329
$ 2,117,741 $ 104,221 $ 2,254,297
$ (1,369,641) $ (185,497) $ (1,610,621)
7,565
164,426 - 164,426
48,595 - 41,476
123,931 150,151 266,219
- - (27,111)
336,952 150,151 452,575
$ (1,032,689) $ (35,346) $ (1,158,046)
125
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.
126
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED JUNE 30, 2012
EXHIBIT D -1
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 179,215 $ 213,093 $ 126,322 $ 265,986
Accounts receivable 53,197 2,032 - 55,229
Total Assets $ 232,412 $ 215,125 $ 126,322 $ 321,215
LIABILITIES
Accounts payable $ 11,174 $ - $ 11,174 $ -
Due to other agency 221,238 99,977 - 321,215
Total Liabilities $ 232,412 $ 99,977 $ 11,174 $ 321,215
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments
Accrued interest
Total Assets
LIABILITIES
Due to other agency
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments
Accounts receivable
Accrued interest
Total Assets
$ 1,068,628 $ 145,374 $ 6,783 $ 1,207,219
3,498 2,747 3,498 2,747
$ 1,072,126 $ 148,121 $ 10,281 $ 1,209,966
$ 1,072,126 $ 137,840 $ - $ 1,209,966
$ 1,247,843 $ 358,467 $ 133,105 $ 1,473,205
53,197 2,032 - 55,229
3,498 2,747 3,498 2,747
$ 1,304,538 $ 363,246 $ 136,603 $ 1,531,181
LIABILITIES
Accounts payable $ 11,174 $ - $ 11,174 $ -
Due to other agency 1,293,364 237,817 - 1,531,181
Total Liabilities $ 1,304,538 $ 237,817 $ 11,174 $ 1,531,181
127
128
Statistical Section (Unaudited)
June 30, 2012
City of Dubuque, Iowa
129
130
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.
Revenue Capacity
These schedules contain information to help the reader assess the City's most
significant local revenue source, the property tax.
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
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.
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.
132
142
146
156
158
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
131
CITY OF DUBUQUE, IOWA
NET ASSET BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2003 2004 2005 2006 2007
Governmental activities
Invested in capital assets, net of related debt $ 212,767,403 $ 231,863,231 $ 249,881,646 $ 267,762,059 $ 288,978,975
Restricted 29,306,124 31,931,803 24,180,874 21,693 ,357 23,900 ,328
Unrestricted 11,528,644 11,322,661 11,236,870 15,132,486 21,921,571
Total governmental activities net assets $ 253,602,171 $ 275,117,695 $ 285,299 ,390 $ 304,587,902 $ 334,800,874
Business -type activities
Invested in capital assets, net of related debt $ 98,706,116 $ 92,301,043 $ 93,036,089 $ 88,802,536 $ 91,483,532
Restricted 553,677 554,005 554,205 554,294 554,318
Unrestricted 6,308,801 10,502,939 12,854,730 13,258,072 11,214,900
Total business -type acti vities net assets $ 105,568,594 $ 103,357,987 $ 106,445,024 $ 102,614,902 $ 103,252,750
Primary government
Invested in capital assets, net of related debt $ 311,473,519 $ 324,164,274 $ 342,917,735 $ 356,564,595 $ 380,462,507
Restricted 29,859,801 32,485,808 24,735,079 22,247,651 24,454,646
Unrestricted 17,837,445 21,825,600 24,091,600 28,390,558 33,136,471
Total primary government net assets $ 359,170,765 $ 378,475,682 $ 391,744,414 $ 407,202,804 $ 438,053,624
132
TABLE 1
Year
2008 2009 2010 2011 2012
$ 296,143,451 $ 298,855,346 $ 309,126,684 $ 329,416,245 $ 347,890,769
31,970,724 27,171,123 26,064,318 23,738,199 26,180,100
18,987,841 (5,280,715) (11,256,312) (4,891,381) (16,876,988)
$ 347,102,016 $ 320,745,754 $ 323,934,690 $ 348,263,063 $ 357,193,881
$ 95,104,575 $ 120,473,286 $ 124,805,513 $ 135,026,753 $ 132,237,734
554,505 770,157 129,642 893,519 957,802
11,312,806 12,321,125 11,679,961 2,603,799 10,665,596
$ 106,971,886 $ 133,564,568 $ 136,615,116 $ 138,524,071 $ 143,861,132
$ 391,248,026 $ 419,328,632 $ 433,932,197 $ 464,442,998 $ 480,128,503
32 ,525,229 27,941,280 26,193,960 24,631,718 27,137,902
30,300,647 7,040,410 423,649 (2,287,582) (6,211,392)
$ 454,073,902 $ 454,310,322 $ 460,549,806 $ 486,787,134 $ 501,055,013
133
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2003 2004 2005 2006 2007
Expenses
Governmental activities:
Public safety $ 15,817,052 $ 16,605,481 $ 18,636,877 $ 18,892,980 $ 20,326,724
Public works 14,453,558 12,847,410 17,088,983 16,390 ,322 16,505,560
Health and social services 815,524 1,290,619 654,469 678,748 759 ,367
Culture and recreation 7,367,147 7,849,114 8,474,183 9,627,505 9,837 ,299
Community and economic
development 9,431,702 12,662,552 9,680,046 8,541,167 11,965,805
General government 4,211,922 3,773,136 4,048,475 3,868,687 4,940,154
Interest on long -term debt 1,605,326 1,248,498 1,298 ,367 1,460,730 1,400,748
Total governmental activities expenses 53,702,231 56,276,810 59,881,400 59,460,139 65,735,657
Business -type activities:
Sewage disposal works 4,655,696 5,282,016 4,656,172 5,298,353 5,814,076
Water utility 4,145,983 4,368,738 4,232,489 4,700,483 4,780,063
Stormwater utility - 1,184,968 1,114,811 1,153,628 1,198,675
Parking facilities 1,445,434 1,655,429 1,604,071 1,629,427 1,611,447
America's River Project 414,830 1,064,701 515,570 82,617 434,667
Refuse collection 2,140,807 2,238,254 2,202,800 2,463,795 2,496,018
Transit system 2,055,248 2,257,078 2,326,908 2,555,080 2,760,459
Salt - -
Total business-type activities expenses 14,857,998 18,051,184 16,652,821 17,883,383 19,095,405
Total primary government expenses $ 68,560,229 $ 74,327,994 $ 76,534221 $ 77,343,522 $ 84,831,062
Program Revenues
Governmental activities:
Charges for services
Public safety 1,586,255 1,785,787 1,900,938 1,809,481 1,857,324
Public works 3,367,720 3,392,650 3,371,073 3,370291 4,839,781
Culture and recreation 2,145,435 2,282,983 2,143,246 2,218 ,315 2,251,562
Other activities 764,732 873,457 945,712 895,920 1,074 ,550
Operating grants and contributions 13,677,503 12,197,307 14,603,106 12,902,410 11,641,904
Capital grants and contributions 3,447,052 5,153258 6,919296 6,881,573 23,741,282
Total governmental activities program revenues 24,988,697 25,685,442 29,883 ,371 28,077,990 45,406,403
Business -type activities:
Charges for services
Sewage disposal works 4,300,156 4,719,491 4,552 ,587 5,077,491 5,259,432
Water utility 3,975,598 4,307,238 4,224,074 4,669 ,340 4,743,896
Stormwater utility - 754,101 684,570 928,850 1,227243
Parking facilities 1,427,146 1,643,490 1,889,937 1,886,642 1,977,757
America's River Project 147,695 881,089 26,061 51 ,373 3,099
Refuse collection 1,981,105 2,157,285 2,283,677 2,397 ,525 2,642251
Transit system 201,367 319,216 389,106 341,743 237,088
Salt - - - - -
Operating grants and contributions 880,822 825,538 651,967 920,762 1,167 ,344
Capital grants and contributions 11,938,797 11,007,676 3,030 ,378 2,769,657 1,670,874
Total business -type activities program revenues 24,852,686 26,615,124 17,732 ,357 19,043,383 18,928,984
Total primary government program revenues $ 49,841,383 $ 52,300 ,566 $ 47,615,728 $ 47,121,373 $ 64,335,387
134
TABLE 2
Year
2008 2009 2010 2011 2012
$ 16,966,210 $ 22,038,265 $ 22,067,988 $ 23,759,068 $ 26,326,367
18,847,068 19,079,688 22,121,629 18,978,423 22,917,747
800,566 849,237 852,099 1,072,347 913,954
10,857,409 12,640,716 11,446,084 10,911,733 12,749,558
1 1,961,584 12,693,140 15,422,099 12,890,841 22,030,950
5,804,003 6,423,908 7,963,016 9,052,704 6,133,983
2,577,417 3,164,126 3,101,897 3,294,951 3,294,912
67,814,257 76,889,080 82,974,812 79,960,067 94,367,471
6,141,524 6,326,708 6,631,326 7,899,011 9,718,669
4,814,692 6,100,491 6,093,827 6,523,993 7,410,710
1,706,735 2,138,198 2213,144 2,811,321 2,750,767
2,173,110 2,147,405 4,003,776 4,775,834 3,152,055
126,699 61,927 423,158 180,086 22,787
2,724,050 2,788,665 2,703,887 2,828,891 3,173,075
2,703,983 2,625,145 2,832,066 2,947,958 3,629,750
- - - 671,647 661,395
20,390,793 22,188,539 24,901,184 28,638,741 30,519,208
$ 88,205,050 $ 99,077,619 $ 107,875,996 $ 108,598,808 $ 124,886,679
2,088,723 2,020,625 2 ,348,064 2,579,573 2,915,562
4,061,883 4,456 ,364 4,046,583 5,331,667 5,178,439
2,109,571 2,279,688 2,192,886 2,108,177 2,321,553
1,382,889 1,557 ,597 2,412,880 2,530,234 2,873,298
11,709,123 12,599,967 20,830,113 14,204,627 23,013,997
8,032,602 4,811,729 10,748,522 23,482,866 16,560,811
29,384,791 27,725,970 42,579,048 50,237,144 52,863,660
5,484,079 5,904 ,535 5,893,730 6,643,974 7,827,281
4,875,530 5,320,642 5 ,326,202 5,638,277 6,037,073
1,766,334 2,291 ,249 2 ,282,625 2,993,539 3,180,134
2,141,607 2,224,185 2 ,399,843 2,750,610 2,908,989
2,140 - 7,000 - -
2,710,583 2,872,649 2,893,017 3,082,197 3,257,960
195,817 196,260 273,433 193,236 278,835
- - - 773,258 665,942
1,209,636 1,095,946 1,652,277 2,773,933 1 ,579,493
2,830263 3,613 ,321 3,800,582 6,536,527 5,323,486
21,215,989 23,518,787 24,528,709 31,385,551 31,059,193
$ 50,600,780 $ 51,244,757 $ 67,107,757 $ 81,622,695 $ 83922,853
(Continued)
135
CITY OF DUBUQUE, IOWA
CHANGES IN NET ASSETS
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2003 2004 2005 2006 2007
Net (Expense)/Revenue
Governmental activities $ (28,713,534) $ (30,591,368) $ (29,998,029) $ (31,382,149) $ (20,329,254)
Business -type activities 9,994,688 8 ,563,940 1,079,536 1,160,000 (166,421)
Total primary government net expense $ (18,718,846) $ (22,027,428) $ (28,918,493) $ (30,222,149) $ (20,495,675)
General Revenues and Other Changes in Net Assets
Governmental activities:
General Revenues
Property taxes 18,041,049 18,588,367 19,767,492 19,716,620 21,656,908
Local option sales tax 6,492,203 7,105,183 6,963,124 7,336,124 7,817,403
Hotel/motel tax 970,232 1 ,314,114 1,383,660 1,862,439 1,569,743
Utility franchise fees - 862,275 1,310,064 1,521,201 1,492,920
Gaming 9 ,539,598 11,631,022 11,694,105 14,034,847 15,556,551
Unrestricted investment earnings 1,749,301 497,361 1,190,337 1,081,141 1,870,403
Gain on sale of capital assets (149,650) 175,231 170,642 77,627 -
Other 1,228,232 638,681 560,789 572,602 586,931
Transfers (7,720,462) 10,956,246 (1,684,581) 5,033,974 (7,633)
Total governmental activities 30,150,503 51,768,480 41,355,632 51,236 ,575 50,543,226
Business -type activities:
General Revenues
Property taxes 506,054 - - - -
Unrestricted investment earnings 321,447 181,674 322,884 339 ,599 796,636
Gain on sale of capital assets (168,001) 25 36 703
Extraordinary item - - - -
Transfers 7,720,462 (10,956,246) 1,684,581 (5,033,974) 7,633
Total business- type activities 8,379,962 (10,774,547) 2,007,501 (4,693,672) 804,269
Total primary government $ 38,530,465 $ 40,993,933 $ 43 ,363,133 $ 46,542,903 $ 51,347,495
Change in Net Assets
Governmental activities
Business -type activities
Total primary government
$ 1,436,969 $ 21,177,112 $ 11,357,603 $ 19,854,426 $ 30,213,972
18,374,650 (2,210,607) 3,087,037 (3,533,672) 637,848
$ 19,811,619 $ 18,966,505 $ 14,444,640 $ 16,320,754 $ 30,851,820
136
TABLE 2
(Continued)
Year
2008 2009 2010 2011 2012
$ (38,429,466) $ (49,163,110) $ (40,395,764) $ (29,722,923) $ (41,503,811)
825,196 1,330,248 (372,475) 2,746,810 539,985
$ (37,604270) $ (47,832,862) $ (40,768,239) $ (26,976,113) $ (40,963,826)
22,744,563 23,716,819 24,876,073 28249,114 30,816,614
8,020,889 7,649,853 8,112,471 7,929,761 8,459,888
1,622,455 1,611,954 1,678,806 1,826,809 1,903,944
1,516,123 1,486292 1,591,712 2,488,858 2,272,481
15,346,468 9,627 ,391 8,209,761 13 ,327,223 8,785,453
2,741,499 2,215,413 1,339,709 668,363 1,529,149
92 ,525 407 ,503 - 149,937 1,417,048
898241 918,605 880,930 622,494 -
(2,252,155) (24,826,982) (3,104,762) (1211,263) (4,749,948)
50,730,608 22,806,848 43,584,700 54,051,296 50,434,629
630,049 433,148 294,562 184,581 206,672
11,736 2 ,304 23,699 19,337 84,178
- - (2,253,036) (243,722)
2,252,155 24,826,982 3,104,762 1,211,263 4,749,948
2,893,940 25,262,434 3,423,023 (837,855) 4,797,076
$ 53,624,548 $ 48,069,282 $ 47,007,723 $ 53 213,441 $ 55,231,705
$ 12,301,142 $ (26,356262) $ 3,188,936 $ 24 ,328,373 $ 8,930,818
3,719,136 26,592,682 3,050,548 1,908,955 5,337,061
$ 16,020,278 $ 236,420 $ 6,239,484 $ 26237,328 $ 14,267,879
137
CITY OF DUBUQUE, IOWA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2003 2004 2005 2006 2007
General Fund
Reserved 4,573,723 $ 3,233,335 $ 3,169,453 $ 1,477,141 $ 4,455,303
Unreserved 12,218,787 13,685,063 13,706,134 16,050,997 17,827,631
Nonspendable * * * *
Assigned * * * *
Unassigned * * * *
Total general fund $ 16,792,510 $ 16,918,398 $ 16,875,587 $ 17,528,138 $ 22,282,934
All Other Governmental Funds
Reserved 14,525,251 $ 14,231,390 $ 13,607,759 $ 15,564,016 $ 13,942 ,519
Unreserved, reported in:
Special revenue funds 11,886,631 9,720,412 5,777,233 7,277,471 7,586,898
Debt service fund - (68,569) (56,320) - -
Capital projects funds 5,846,016 7,353,593 11,191,461 (981,248) 4,195 ,354
Permanent funds 70,091 71,373 73,628 83,367 115,825
Nonspendable * * * * *
Restricted * * * * *
Committed * * * * *
Unassigned * * * * *
Total all other govermmental funds $ 32,327,989 $ 31,308,199 $ 30,593,761 $ 21,943,606 $ 25,840,596
* Classification changed in 2011 due to adoption of GASB 54.
138
TABLE 3
Year
2008 2009 2010 2011 2012
$ 1,699,825 $ 4,864,701 $ 5,199,760 *
17,982,016 14 206,181 8,622,705 *
* * * 868,631 5,613,359
* 8,904,490 5,549,803
* 6,139,306 9,371,016
$ 19,681,841 $ 19,070,882 $ 13,822,465 $ 15,912,427 $ 20,534,178
$ 31,887,038 $ 19,634,305 $ 24,404,656
7,431,931 5,981,390 4,011,022
*
7,875,448 5,659,214 (989,025)
33,958 35,550 33,273
* * * 10 ,320,305
* * * 18,010,570
* * * 5,203,472
* * * (377,363)
10,975,468
31,362,126
5,843,671
(429,344)
$ 47228,375 $ 31 ,310,459 $ 27,459,926 $ 33,156,984 $ 47,751,921
139
CITY OF DUBUQUE, IOWA
CHANGES IN FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
Revenues
Taxes
Special assessments
Licenses and permits
Intergovemmental
Charges for services
Fines and forfeits
Investment earnings
Contributions
Gaming
Misce➢aneous
Total revenues
Expenditures
Current
Public safety
Public works
Heakh and social services
Cukure and recreation
Community and economic development
General government
Debt service
Principal
Interest
Capital projects
Total expenditures
Excess (deficiency) of revenues over
(under) expenditures
Other Financing Sources (Uses)
Issuance of bonds
Discount on bonds
Premiums on bonds
Issuance of refunding bonds
Payment to refunded bonds escrow agent
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Trial other financing sources (uses)
Net change in fund balances
Fiscal -
2003 2004 2005 2006 2007
$ 25,508,936
561,406
753,990
17,249,290
5,325,031
465,787
1,750,519
447,960
9,539,598
1,312,348
62,914,865
$ 27,861,273 $ 29,430,135 $ 30,043,167 $ 32,526,525
717,305 197,195 322,214 586,459
1,063,081 1,078,722 965,712 1,052,896
17,057,994 18,370,358 15,021,722 16,744,703
5,666,307 5,918,542 6,620,243 7,351,191
241,572 267,536 204,201 158,360
502,932 1,197,691 1,096,445 1 ,913,420
345,415 306,809 246,908 1,168,463
11,631,022 11,694,105 14,034,847 15,556,551
1,139,057 1,573,305 1,106,991 1,149,546
66,225,958 70,034,398 69,662,450 78,208,114
15,278,654 16,764,510 18,652,246 19,535,369 20,743,196
11,860,004 10,723,527 21,301,239 11,605,567 12,506,378
749,435 721,906 662,231 715,598 783,209
7,515,522 7,470,264 8,180,832 9 ,998,462 10,244,244
9,010,868 11 ,924,011 9,825,470 9 ,981,645 11,695,902
3,835,609 4,227,335 4,022,785 4,090,866 4,441,043
2,009,986 2,117,773 1,769,960 1,325,970 1,663,339
1,668,019 1,304,802 1,240,427 1,493,504 1,412,012
9,930,311 6,865,119 8,226,840 14,528,340 8,227,257
61,858,408 62,119,247 73,882,030 73,275,321 71,716,580
1,056,457 4,106,711 (3847,632) (3,612,871) 6,491,534
13,682
743,591
- - (58,487)
150,000 795,000 7,277,665 1,515,750 -
(150,000) - (1,494,371) -
5,367,986 8,662,300 12 ,981,655 7,334,605 10,394,726
(21,073,805) (15,060,669) (16,105,184) (11 ,904,890) (11,789,548)
117,239 264,344 170,642 150,491 2,811,483
(15,588,580) (5,339,025) 4,266,291 (4,384,733) 2,160,252
$ (14,532,123) $ (1,232,314) $ 418,659 $ (7 ,997,604) $ 8,651,786
Debt service as a percentage ofnoncapitalexpendilures 7.37% 6.32% 5.46% 4.99% 5.01%
140
TABLE 4
Year
2008 2009 2010 2011 2012
$ 33,898,692 $ 34,454,146 $ 36,252,156 $ 40,428,894 $ 43,443,669
177,585 250,372 318,178 232,535 596,138
1,153,429 1,088,386 1,115,472 1,170,922 1,570,022
14,256,523 15,796,822 27,310,624 26,171,082 37,574,783
7,833,151 8,029,189 8,063,284 8,723,086 9,296,329
188,603 199,839 224,601 454,117 525,389
2,731,953 2,206,382 1,348,615 654,587 1,511,437
6,134,002 1,369,759 2,333,995 1,297,621 1,578,376
15,346,468 9,627,391 8,209,761 13,327,223 8,785,453
1,269,376 1,600,679 2,111,834 2,075,262 1,319,558
82,989,782 74,622,965 87,288,520 94,535,329 106,201,154
21,542,661 21,335,192 21 ,979,729 23 ,950,386 24,476,772
16,331,107 14,261,551 19,251,625 14,429,415 12,385,929
797,644 815,873 813,609 1,040,114 828,837
10,277,787 12,227,506 14 ,909,517 11,279,951 10,873,474
11,847,512 11,953,279 14,654,816 12,361,176 22,237,140
6,310 ,939 5,836,839 6,368,308 7,686,929 6,335,947
1,762,375 2,169,678 2,651,765 2,820,371 3,224,680
2,406,431 3,095,166 3,145,735 3,321,157 3,220,546
15,351,848 24,274,120 14,831,118 15,102,893 23,459,891
86,628,304 95,969,204 98,606,222 91,992,392 107,043,216
(3,638,522) (21,346,239) (11,317,702) 2,542,937 (842,062)
23,083,696 5,905,000 4,722,176 6 ,996,722 27,215,363
(266,158) (48,516) (31,990) (39,547) (71,689)
- - 554,796 1,642 123,990
2,965,000 - 8,885,000 705,000 -
(2,875,000) - (9,405,000) (690,000) -
14,801,589 7,451,152 7 ,993,297 15,850,523 8,773,387
(18,185,109) (9,084,228) (10,562,137) (18 ,961,892) (18,336,603)
- - - 628,482 132,425
2,901,190 593,956 62,610 753,153 2,221,877
22,425,208 4,817,364 2,218,752 5,244,083 20,058,750
$ 18,786,686 $ (16,528,875) $ (9,098 ,950) $ 7,787,020 $ 19,216,688
6.55% 7.68% 7.74% 8.49% 7.65%
141
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 5
Total
Taxable
Value to
Real Property Exemptions Total Total
Levy Fiscal Taxable Assessed Real Taxable Assessed Assessed Total Direct
Year Year Value Value Property Value Value Value Tax Rate
2001 2003 $ 1,540,206 $ 2,317,926 $ 10,141 $ 1,530,065 $ 2,317,926 66.01 % $ 10.21200
2002 2004 1,572,776 2,350,317 9,694 1,563,082 2,350,317 66.51 10.27303
2003 2005 1,666,033 2,575,400 9,599 1,656,434 2,575,400 64.32 10.07200
2004 2006 1,710,334 2,679,078 9,862 1,700,472 2,679,078 63.47 9.69910
2005 2007 1,780,354 2,804,568 9,122 1,771,232 2,804,568 63.16 9.98030
2006 2008 1,823,304 2,870,178 8,939 1,814,365 2,870,178 63.21 10.31690
2007 2009 1,949,071 3,171,681 9,298 1,939,773 3,171,681 61.16 9.96904
2008 2010 2,033,135 3,239,112 9,246 2,023,889 3,239,112 62.48 9.85777
2009 2011 2,159,622 3,349,823 8,885 2,150,737 3,349,823 64.20 10.02741
2010 2012 2,243,474 3,406,186 8,875 2,234,599 3,406,186 65.60 10.45111
142
CITY OF DUBUQUE, IOWA
PROPERTY TAX RATES
DIRECT AND OVERLAPPING GOVERNMENTS
LAST TEN FISCAL YEARS
TAX RATES PER $1,000 ASSESSED VALUE
TABLE 6
Dubuque Board of Ratio of
Levy Fiscal Dubuque School Education and Area 1 Dubuque Dubquue
Year Year City District Independents Voc. Tech County Total City to Total
2001 2003 $ 10.21200 $ 13.73882 $ 0.55492 $ 0.57507 $ 5.60064 $ 30.68145 33.28
2002 2004 10.27303 13.84768 0.61686 0.57791 5.59515 30.91063 33.23
2003 2005 10.07200 14.27491 0.57269 0.59804 6.08923 31.60687 31.87
2004 2006 9.69910 15.09695 0.60226 0.60517 6.08416 32.08764 30.23
2005 2007 9.98033 15.92538 0.60802 0.61127 6.17924 33.30424 29.97
2006 2008 10.31690 16.40925 0.63160 0.61270 6.42691 34.39736 29.99
2007 2009 9.96904 16.89000 0.95250 0.55713 6.41459 34.78326 28.66
2008 2010 9.85777 16.87918 0.57970 0.99471 6.40435 34.71571 28.40
2009 2011 10.02742 16.88349 0.55740 1.03532 6.50193 35.00556 28.65
2010 2012 10.45111 16.87685 0.67766 1.07379 6.49167 35.57108 29.38
Separate components of the Dubuque City Rate is as follows:
Levy Fiscal Public Employee Debt
Year Year General Transit Insurance Benefits Service Total
2001 2003 $ 8.10000 $ 0.31269 $ 0.14642 $ 1.24862 $ 0.40427 $ 10.21200
2002 2004 8.10000 0.32633 0.17342 1.51270 0.16058 10.27303
2003 2005 8.10000 0.37993 0.20994 1.25424 0.12789 10.07200
2004 2006 8.10000 0.42561 0.22000 0.95349 9.69910
2005 2007 8.10000 0.53643 0.21308 1.13082 9.98033
2006 2008 8.10000 0.60729 0.21760 1.39201 - 10.31690
2007 2009 8.10000 0.66727 0.08685 1.11492 9.96904
2008 2010 8.10000 0.60000 0.21492 0.90583 0.03702 9.85777
2009 2011 8.10000 0.54469 0.20531 1.12441 0.05300 10.02741
2010 2012 8.10000 0.35273 0.19508 1.75052 0.05278 10.45111
Source: Dubuque County Auditor's Office.
143
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
TABLE 7
2012 2003
Percentage of Percentage of
Taxable Total City Taxable Total City
Assessed Taxable Assessed Taxable
Taxpayer Value Rank Assessed Value Value Rank Assessed Value
Peninsula Gaming Company $ 56,784 1 1.67 % $ - -
Kennedy Mall Inc. 27,206 2 .80 23,588 1 1.02
Progressive Processing LLC (Horm 21,397 3 .63
Medical Associates Realty LP 19,559 4 .57 21,080 2 .91
Nordstrom, Inc. 17,221 5 .51 14,889 4 .64
The McGraw Hill Companies Inc. 14,729 6 .43 7,702 10 .33
Otto A LLC 14,100 7 .41 17,512 3 .76
Walter Development LLC 13,780 8 .40
Platinum Holdings LLC 11,588 9 .34
Asbury Dubuque LLC 10,867 10 .32
Minglewood Limited Partnership 8,944 8 .39
Lexington Dubuque LLC
Plaza 20 Inc. 10,041 5 .43
U.S. West Communications 9,422 6 .41
Wal -Mart 9,137 7 .39
American Trust & Savings Bank 8,640 9 .37
$ 207,231 6.08%
Source: Dubuque County Auditor's Office
144
$ 130,955 5.65%
CITY OF DUBUQUE, IOWA
PROPERTY TAX LEVIES AND COLLECTIONS
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS )
TABLE 8
Percent of Total Tax Ratio of
Total Tax Current Current Delinquent Total Tax Collections Outstanding Delinquent
Fiscal Tax Levi Tax Taxes Tax Collections to Total Delinquent Taxes to Total
Year Year (1) Collections Collected Collections (2) Tax Lev? Taxes Tax Lev?
2003 2002 15,810 15,703 99.3 % 216 15,431 100.7 % 130 0.82 %
2004 2003 16,208 15,937 98.3 11 15,948 98.4 207 1.28
2005 2004 16,408 16,383 99.8 20 16,403 100.0 196 1.19
2006 2005 16,229 16,146 99.5 2 16,148 99.5 182 1.12
2007 2006 17,216 17,193 99.9 4 17,197 99.9 174 1.01
2008 2007 18,211 18,160 99.7 3 18,163 99.7 215 1.18
2009 2008 18,992 18,670 98.3 5 18,675 98.3 262 1.38
2010 2009 19,124 19,117 99.9 (10) 19,107 99.9 202 1.06
2011 2010 19,906 19,793 99.4 13 19,806 99.5 276 1.39
2012 2011 21,313 21,339 100.1 1 21,341 100.1 185 0.87
(1) Excludes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
145
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governemental Activities
General Tax Increment Tax Increment
Fiscal Obligation Financing Financing Other Loans
Year Bonds Bonds Notes Payable
2003 $ 19,865,000 $ 4,943,199 $ - $ -
2004 19,010,000 3,820,394 655,000 -
2005 24,960,000 3,450,820 622,211 -
2006 24,165,750 3,040,304 590,439 -
2007 22,990,000 2,594,831 1,279,885 -
2008 21,860,000 25,136,402 1,279,636 -
2009 26,080,000 24,611,976 1,169,684 150,000
2010 27,540,000 24,689,216 1,049,696 282,857
2011 32,271,022 23,267,892 1,931,348 282,857
2012 52,751,472 22,488,953 1,767,664 4,735,714
Note: Details regarding the City's outstanding debt can be found in the
notes to the financial statements.
(1) Population and personal income data can be found in Table 17.
* Personal Income unavailable at report date.
146
TABLE 9
Business -Type Activities
General Capital Other Total Percentage of
Obligation Loan Revenue Loans Primary Personal Per
Bonds Notes Bonds Payable Government Income (1) Capita (1)
$ 5,140,000 $ - $ 1,540,000 $ - $ 31,488,199 1.98% $ 546
6,660,000 - 1,350,000 - 31,495,394 1.85% 546
8,090,000 - 1,150,000 - 38,273,031 2.17% 663
11,619,250 - 940,000 - 40,355,743 2.17% 700
11,090,000 - 720,000 - 38,674,716 2.01% 670
11,570,000 611,977 490,000 - 60,948,015 3.06% 1,057
14,655,000 3,914,076 1,445,000 390,890 72,416,626 3.62% 1,255
24,225,000 8,289,621 1,125,000 371,978 87,573,368 4.26% 1,518
25,503,978 33,195,408 6,755,000 2,252,109 125,459,614 5.38% 2,177
35,248,528 61,957,749 6,500,000 331,235 185,781,315 * 3,223
147
CITY OF DUBUQUE
RATIOS OF GENERAL BONDED DEBT OUTSTANDING
LAST TEN FISCAL YEARS
DOLLARS IN THOUSANDS EXCEPT PER CAPITA
TABLE 10
Percentage of Percentage of
General Taxable Taxable Assessed Assessed
Fisal Obligation Value of Value of Value of Value of Per
Year Bonds Property Property Property Property Capita
2003 $ 25,005 $ 1,530,057 1.63% $ 2,317,926 1.08% $ 433
2004 25,670 1,563,082 1.64% 2,350,317 1.09% 445
2005 33,050 1,656,434 2.00% 2,575,400 1.28% 573
2006 35,785 1,700,472 2.10% 2,679,078 1.34% 620
2007 34,080 1,771,232 1.92% 2,804,568 1.22% 591
2008 33,430 1,814,365 1.84% 2,870,178 1.16% 580
2009 40,735 1,939,773 2.10% 3,171,681 1.28% 706
2010 51,765 2,023,899 2.56% 3,239,112 1.60% 897
2011 57,775 2,159,622 2.68% 3,349,823 1.72% 1,002
2012 88,000 2,243,474 3.92% 3,406,186 2.58% 1,527
148
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2012
TABLE 11
Jurisdiction
Direct, City of Dubuque, Iowa
Overlapping:
Dubuque County
Dubuque Community School District
Northeast Iowa Community College
Total Overlapping
Total
Net General Tax Tax
Obligation Increment Increment Percentage Amount
Bonded Debt Financing Financing Capital Loans Applicable to Applicable to
Outstanding (1) Bonds Notes Notes Payable City Government
$ 52,751,472 $22,488,953 $1,767,664 $ - $ 4,735,714 100.00% $ 81,743,803
31,605,000
31,605,000
286,830 0.06% 172
22,450,000 100.00% 22,450,000
750,000 0.03% 9,707
23,200,000 286,830 22,459,879
$ 84,356,472 $22,488,953 $1,767,664 $23,200,000 $ 5,022,544
Source: Dubuque County Auditor, Dubuque Community School District and Northeast Iowa Community College
(1) Excludes general obligation bonds reported in enterprise funds.
$ 104,203,682
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 businesss 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 businesss 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.
149
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2003 2004 2005 2006
Debit limit $ 115,896 $ 117,516 $ 133,149 $ 138,789
Total net debt
applicable to limit 30,271 30,185 37,177 39,443
Legal debit margin $ 85,625 $ 87,331 $ 95,972 $ 99,346
Total net debt
applicable to the debt
limit as a percentage
of debt limit 26.12% 25.69% 27.92% 28.42%
150
TABLE 12
2007 2008 2009 2010 2011 2012
$ 145,401 $ 148,824 $ 163,621 $ 167,247 $ 174,333 $ 177,668
38,060 60,485 76,182 101,152 92,443 142,316
$ 107,341 $ 88,339 $ 87,439 $ 66,095 $ 81,890 $ 35,352
26. 18% 40.64%
46.56% 60.48%
Legal Debt Margin Calculation for Fiscal Year 2012
Estimated actual value
Debt limit - 5% of total actual valuation
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund)
53.03% 80.10%
$ 3,553,359,810
$ 177,667,991
$ 142,315,881
Legal debt margin $ 35,352,110
151
CITY OF DUBUQUE, IOWA
REVENUE DEBT COVERAGE
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 13
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements Coverage
Year (1) (2) Service Principal Interest Total (3)
WATER UTILITY
2008 $ 4,933 $ 3,959 $ 974 $ 39 $ 27 $ 66 14.76
2009 5,391 5,196 195 104 99 203 0.96
2010 5 ,353 5,153 200 108 79 187 1.07
2011 5,638 5,316 322 496 446 942 0.34
2012 6,087 5,895 192 535 455 990 0.19
STORMWATER UTILITY
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage (3)
2009 2,402 1,309 1,093 75 58 133 8.22
2010 2 ,357 1,320 1,037 132 110 242 4.29
2011 3,023 1,679 1,344 231 243 474 2.84
2012 3,211 1,497 1,714 462 268 730 2.35
SEWAGE DISPOSAL WORKS
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage (3)
2009 6,084 5,093 991 - 7 7 141.57
2010 5,995 5,331 664 144 128 272 2.44
2011 6,699 6,029 670 34 1,129 1,163 0.58
2012 7,892 7,018 874 1,719 1,443 3,162 0.28
PARKING BONDS
Net
Revenue
Gross Operating Available Next Fiscal Year's
Fiscal Revenues Expenses For Debt Debt Service Requirements
Year (1) (2) Service Principal Interest Total Coverage (3)
2003 1,484 847 637 190 71 261 2.44
2004 1,659 971 688 200 63 263 2.62
2005 1,934 960 974 210 54 264 3.69
2006 1,933 977 956 220 44 264 3.62
2007 2,113 1,014 1,099 230 34 264 4.16
2008 2,224 1,495 729 240 23 263 2.77
2009 2,270 1,412 858 250 12 262 3.27
Parking revenue bonds matured in 2010.
(1) Total operating revenues (Including interest).
(2) Total operating expenses exclusive of depreciation.
(3) Coverage is computed by dividing net revenue available for debt service by debt service.
152
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
TABLE 14
Fiscal Year
Water Receipts Sewer Receipts
2003 $ 4,154,899 $ 4,252,098
2004 4,350,338 4,466,035
2005 4,340,789 4,478,205
2006 4,798,408 4,920,376
2007 4,856,353 5,276,454
2008 5,020,001 5,481,074
2009 5,358,419 5,821,251
2010 5,503,277 5,851,401
2011 5,871,246 6,672,890
2012 6,297,547 7,825,037
Source: Cash basis receipt ledgers.
153
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST SEVEN FISCAL YEARS*
TABLE 15
Fiscal Year
Residential Commercial Industrial Government Total
.p
2006 19,813 1,820 73 35 21,741
2007 19,914 1,839 74 38 21,865
2008 19,970 1,878 70 45 21,963
2009 20,058 1,895 72 48 22,073
2010 20,204 1,887 71 48 22,210
2011 20,338 1,904 79 51 22,372
2012 20,532 1,902 79 52 22,565
or three years information not available.
154
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUTOMERS
FISCAL YEAR 2012
TABLE 16
Customer
Rousselot
Hormel
Water & Resource Recovery Center
University of Dubuque
Loras College
Prairie Farms
Alliant Energy
Mercy Medical Center
Dubuque Community Schools
Premier Linen & Thy Cleaning
Table Mound Mobile Home Park
Inland Protien
Total Receipts
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Receipts Rank Receipts Receipts Rank Receipts
$ 230,848 1 3.67 % $ 446,702 1 5.71 %
99,388 2
54,545 3
54,508 4
54,458 5
54,426 6
53,982 7
53,301 8
46,434 9
34,948 10
$ 6,297,547
155
1.58 206,276 2 2.64
0.87
0.87 60,176 10 0.77
0.86 70,668 6 0.9
0.86 132,755 3 1.7
0.86
0.85 93,032 5 1.19
0.74 61,949 9 0.79
0.55 66,935 7 0.86
63,045 8 0.81
115,033 4 1.47
$ 7,825,037
CITY OF DUBUQUE, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
TABLE 17
Per Capita
Personal Public School Unemployment
Personal Income Median Age Enrollment Rate
Year Population Income (1) (2) (3) (4)
2003 57,686 $ 1,593,921,866 $ 27,631 37 10,122.00 4.0 %
2004 57,686 1,704,563,614 29,549 37 10,428.00 4.4
2005 57,686 1,768,075,900 30,650 37 10,547.00 4.5
2006 57,686 1,862,680,940 32 ,290 37 10,733.00 3.5
2007 57,686 1,920,366,940 33 ,290 37 10,727.00 3.7
2008 57,686 1,994 ,262,706 34,571 38 10,614.00 3.8
2009 57,686 2,002,973,292 34,722 37 10,697.00 6.2
2010 57,686 2,055,640,610 35,635 37 10,517.00 6.4
2011 57,637 2,332,569,390 40,470 37 10,467.00 5.8
2012 57,637 * 37 * 5.2
Sources:
(1) U.S. Department of Conuuerce, 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.
156
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
TABLE 18
2012 2006*
Percentage of Percentage of
# of Total City # of Total City
Employer Employees Rank Employment Employees Rank Employment
John Deere (2) 2,065 1 3.81 1,900 1 3.35 %
Dubuque Community Schools 1,946 2 3.59 1,410 2 2.85
Mercy Medical Center 1,324 3 2.44 1,324 3 2.49
IBM (3) 1,300 4 2.40
Medical Associates 999 5 1.84 998 5 1.87
Finley Hospital 920 6 1.70 920 7 1.41
City of Dubuque 686 7 1.27 716 10 0.97
Holy Family Catholic Schools 575 8 1.06
Prudential Retirement 550 9 1.01
Eagle Window & Door 550 10 1.01 950 6 1.30
McCoy Group 1,200 4
Heartland Financial 760 8 1.16
Flexsteel 750 9 1.15
10,915 10,928
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.
*Information for 2003 thru 2005 not available.
157
CITY OF DUBUQUE, IOWA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2003 2004 2005 2006
Pulir Safety
Emergency Communications 10.00 10.00 10.00 11.00
Fire 90.00 90.00 90.00 90.00
Police 97.00 97.00 97.00 99.00
Building Services 7.00 7.00 7.00 7.00
Public Works
Public Works 86.02 87.30 88.55 87.00
Engineering 24.00 24.00 24.00 25.00
Health & Social Services
Health Services 5.00 5.00 5.00 5.00
Human Rights 2.00 2.00 2.00 3.00
Cultural and Recreation
Civic Center 9.15 9.15 9.15 1.15
Lilrary 18.00 18.00 18.00 18.00
Park 21.92 21.92 21.92 21.92
Recreation 8.93 8.93 8.93 8.93
Community & Economic Development
Community / Economic Dev 3.00 3.00 3.00 3.00
Housing Services 20.25 20.00 21.00 21.00
Planning Services 7.00 7.00 7.00 8.00
General Goveiilinent
Airport 14.00 13.00 13.00 13.00
Cable TV 2.00 200 2.00 200
City Clerks Office 3.00 3.00 3.00 3.00
City Manager's Office 11.00 10.00 10.00 11.00
Finance 16.00 15.00 14.00 14.00
Legal 2.00 200 2.00 262
Information Services 6.00 6.00 6.00 6.00
Business Type
Water 23.00 23.00 23.00 23.00
Water Pollution Control 18.00 18.00 18.00 18.00
Parking 11.50 10.50 10.50 8.00
Transit 8.00 7.00 7.00 8.55
Total 523.77 519.80 521.05 518.17
Source: City Budget Records
Departments with employees allocated to more than one function are reflected in the area with largest number of employees.
158
TABLE 19
Full-Tune Equivalent as of June 30
2007 2008 2009 2010 2011 2012
11.00 11.00 13.00
90.00 90.00 90.00
100.00 101.00 108.67
7.00 7.00 8.00
87.00 87.00 88.00
25.00 25.00 26.00
5.00 4.00 4.00
3.00 3.00 3.00
0.15 0.15 0.15
18.00 18.00 18.00
21.92 21.92 21.92
7.93 7.93 7.93
3.00 3.00 3.00
20.25 18.00 2200
8.00 8.00 8.00
13.23 12.00 12.00
200 2.00 200
3.00 3.00 3.00
11.00 11.00 13.50
14.00 14.00 14.00
3.00 3.00 4.00
6.00 7.00 7.00
13.00 13.00 13.00
90.00 90.00 90.00
110.84 113.34 114.25
8.00 9.00 9.00
87.42 87.42 87.42
26.00 27.00 27.00
4.00 4.00 4.00
3.00 3.00
0.15 0.15 0.15
18.00 18.00 18.00
2251 2250 23.50
8.43 8.93 9.93
3.00 3.00 3.00
2200 22.25 23.00
8.00 8.00 8.00
12.00 12.00 12.00
2.00 2.00 2.00
3.00 3.00 3.00
15.00 15.00 14.00
14.00 14.00 14.00
4.66 5.00 5.00
7.00 7.00 7.00
23.00 23.00 23.00 24.00 25.00 25.00
18.00 18.00 18.00 18.00 18.00 18.00
8.00 7.00 7.50 9.00 9.00 9.00
8.00 7.00 7.00 6.00 7.00 6.00
51 642 51200 53267 539 01 546 59 545 25
159
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Public Safety
Police
Physical arrests
Traffic violations
Parking violations
Fiscal Year
2003 2004 2005 2006
4,000 4,550 4,795 4,790
2,126 2,427 2,171 2,111
51,162 49,985 51,004 46,575
Fire
Number of calls answered 3,974 4,181 4,300 4,176
Inspections conducted 524 408 1,135 409
Sewer
Sewage system
Daily average treatment in gallons 8,000,000 8,000,000 8,500,000 8,500,000
Maximum daily capacity of treatment plant in gallons 15,000,000 15,000,000 13,500,000 13,500,000
Water systems
Daily average consumption in gallons
Maximum daily capacity of plant in gallons
Refuse (Municipal Collection)
Tonnage
Sources: Various City Departments.
160
8,000,000 8,000,000 7,720,000 8,057,000
18,000,000 18,000,000 18,000,000 18,000,000
10,435 10,330 10,428 10,573
TABLE 20
2007 2008 2009 2010 2011 2012
5,078 5,090 6,325 6,365 6,350 6,319
1,986 6,881 8,801 8,901 12,289 11,836
42,530 40,741 36,457 37,056 35,799 34,910
4,454 4,699 4,480 4,557 4,844 5,307
360 624 443 1,035 555 589
8,000,000 10,310,000 7,981,000 9,068,000 8,132,000 7,817,000
13,500,000 13,500,000 21,131,000 21,131,000 23,240,000 23,240,000
7,950,000 7,812,000 7,845,000 7,684,000 7,636,000 7,226,000
18,000,000 17,000,000 18,000,000 18,000,000 18,000,000 18,000,000
10,807 11,798 10,774 10,615 10,660 11,180
161
CITY OF DUBUQUE, IOWA
CAPITAL ASSETS BY FUNCTIOI
LAST TEN FISCAL YEARS
Fiscal Year
2003 2004 2005 2006
Public safety
Police
Stations 1 1 1 1
Patrol units 18 18 19 19
Fire
Stations 6 6 6 6
Aerial trucks 3 3 3 3
Public works
Streets
Miles (1) 273 290 290 295
Streetlights (1) 1,500 1,591 1,631 1,755
Health and social services
Hospital 2 2 2 2
Number of patient beds 584 560 421 421
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 42 42 44 44
Acreage 850 850 855 845
Recreation
Civic center 1 1 1 1
Swimming pools 2 2 2 2
Softball fields 7 7 7 7
Baseball fields 1 1 1 1
Tennis courts 20 20 20 19
Sewer
Sewage system
Miles of sanitary sewer (1) * * * 263
Miles of storm sewers (1) * * * 116
Number of treatment plants 1 1 1 1
Number of service connectors 20,800 21,000 21,000 21,443
Water systems
Miles of water mains 305 310 312 313
Number of service connectors 21,032 21,206 21,016 21,257
Number of city owned fire hydra 2,713 2,736 2,770 2,780
Sources: Various City Depa lents.
(1) City GIS System.
* Information not available.
162
TABLE 21
2007 2008 2009 2010 2011 2012
1 1 1 1 1 1
19 19 19 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
307 317 320 321 325 328
1,802 1,855 1,877 1,916 1,931 2,081
2 2 2 2 2 2
405 405 405 389 389 389
1 1 1 1 1 1
1 1 1 1 1 1
47 47 47 48 48 51
898 898 898 901 901 1,001
1 1 1 1 1 1
2 2 2 2 2 2
8 7 7 7 7 7
1 1 1 1 1 1
19 20 20 20 20 20
286 290 295 300 300 304
120 122 143 144 150 155
1 1 1 1 1 1
21,568 21,633 21,347 21,599 21,702 22,393
315 316 317 318 319 320
21,210 21,243 21,347 21,986 22,092 22,161
2,798 2,812 2,831 2,843 2,854 2,863
163
164
Compliance Section
June 30, 2012
City of Dubuque, Iowa
165
166
EideBailly
CPAs Cu BUSINESS ADVISORS
Report on Internal Control Over Financial Reporting and on Compliance and
Other Matters Based on an Audit of Financial Statements Performed in Accordance
with Government 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 (City), as of and for the year ended June 30,
2012, which collectively comprise the City's basic financial statements and have issued our report thereon
dated December 18, 2012. 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
which was audited by other auditors, were not audited in accordance with Government Auditing
Standards, and accordingly, this report does not extend to those financial statements.
Internal Control Over Financial Reporting
Management of the City is responsible for establishing and maintaining effective 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 a
certain deficiency in internal control over financial reporting that we consider to be a material weakness
and another deficiency that we consider to be a significant deficiency.
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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 deficiency described in Part II of the accompanying Schedule of Findings and Questioned
Costs as item II -A -12 to be a material weakness.
A significant deficiency is a deficiency, or a combination of deficiencies, in internal control that is less
severe than a material weakness, yet important enough to merit attention by those charged with
governance. We consider the deficiency described in Part II of the accompanying Schedule of Findings
and Questioned Costs as item II -B -12 to be a significant deficiency.
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, noncompliance with which could have a direct and material effect on the
determination of financial statement amounts. However, providing an opinion on compliance with those
provisions was not an objective of our audit, and accordingly, we do not express such an opinion. The
results of our tests disclosed no instances of noncompliance or other matters that are required to be
reported under Government Auditing Standards. However, we noted certain immaterial instances of
noncompliance 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, 2012, 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 response to the 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 is intended solely for the information and use of the management, City Council, others within
the entity, and 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.
e-,e,-,, 2 , rs
Dubuque, Iowa
December 18, 2012
168
EideBailly
CPAs Cu BUSINESS ADVISORS
Independent Auditor's 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, 2012. 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, Audits of
States, Local Governments, and Non - Profit Organizations. Those standards and OMB Circular A -133
require that we plan and perform the audit to obtain reasonable assurance about whether noncompliance
with the 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, 2012.
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Internal Control Over Compliance
Management of the City of Dubuque, Iowa, is responsible for establishing and maintaining effective
internal control over compliance with the 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 the 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.
A deficiency in internal control over compliance exists when the design or operation of a control over
compliance does not allow management or employees, in the normal course of performing their assigned
functions, to prevent, or detect and correct, noncompliance with a type of compliance requirement of a
federal program on a timely basis. A material weakness in internal control over compliance is a
deficiency, or combination of deficiencies, in internal control over compliance, such that there is a
reasonable possibility that material noncompliance with a 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 is intended solely for the information and use of management, City Council, others within the
entity, 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.
-,k-,, 2 , rs
Dubuque, Iowa
December 18, 2012
170
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Grantor/Program
U.S. Department of Commerce:
Direct program:
Investments for Public Works and Economic
Development Facilities
Federal Pass- Through
CFDA Entity Identifying Federal
Number Number Expenditures
11.300 $ 140,442
U.S. Department of Housing and Urban Development.
Direct program:
Community Development Block
Grants /Entitlement Grants 14.218
Community Development Block
Grants /Entitlement Grants 14.218
975,263
650,637
1,625,900
Pass - through program from:
Iowa Department of Economic Development.
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii 14.228 08 -DRH -212 8,096,436
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii 14.228 08 -NSP -019 57,690
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii 14.228 08- DRIFWP -203 24,500
8,178,626
Direct program:
Shelter Plus Care 14.238 78,617
ARRA - Homelessness Prevention and Rapid
Re- Housing Program 14.257 146,587
Fair Housing Assistance Program - State and
Local 14.401 13,700
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation 14.856 78,984
Section 8 Housing Choice Vouchers 14.871 3,064,992
Section 8 Housing Choice Vouchers 14.871 433,733
Section 8 Housing Choice Vouchers 14.871 63,478
3,562,203
171
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Grantor/Program
Federal Pass- Through
CFDA Entity Identifying Federal
Number Number Expenditures
U.S. Department of Housing and Urban Development. (continued)
Direct program: (continued)
Lead -Based Paint Hazard Control in
Privately -Owned Housing 14.900 $ 820,589
Healthy Homes Production Grant Program 14.913 272,282
Total U.S. Department of Housing and Urban
Development 14,777,488
U.S. Department of the Interior
Pass - through program from:
Iowa Department of Natural Resources:
Sportfishing and Boating Safety Act
15.622 CRD825MKONRA110303 2,291,737
U.S. Department of Justice:
Direct program:
Violence Against Women Formula Grants 16.588 1,190
Bulletproof Vest Partnership Program 16.607 3,495
Bulletproof Vest Partnership Program 16.607 3,340
6,835
Pass - through program from:
Dubuque County, Iowa Sheriff:
Public Safety Partnership and Commun
Policing Grants
Helping Services of Northeast Iowa, Inc.:
Enforcing Underage Drinking Laws
Program
Enforcing Underage Drinking Laws
Program
ty
172
16.710 09- HOTSPOTS 1,247
16.727 JJYD- FY11 -01 2,700
16.727 JJYD- FY10 -01 1,400
4,100
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Grantor/Program
Federal Pass- Through
CFDA Entity Identifying Federal
Number Number Expenditures
U.S. Department of Justice: (continued)
JAG Program Cluster:
Direct program:
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 $ 18,804
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 17,879
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 2,025
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 2,807
41,515
Pass - through program from:
Iowa Department of Justice:
ARRA - Recovery Act - Edward Byrne
Memorial Justice Assistance Grant
(JAG) Program/Grants to States
and Territories
Direct program:
ARRA - Recovery Act - Edward Byrne
Memorial Justice Assistance Grant
(JAG) Program/Grants to Units of
Local Government
Total JAG Program Cluster
16.803 09JAG -15910 59,197
16.804 110,527
211,239
Total U.S. Department of Justice 224,611
U.S. Department of Transportation:
Direct program:
Airport Improvement Program 20.106 2,501,564
Airport Improvement Program 20.106 436,594
Airport Improvement Program 20.106 387,677
Airport Improvement Program 20.106 191,251
Airport Improvement Program 20.106 80,998
Airport Improvement Program 20.106 15,741
Airport Improvement Program 20.106 9,563
Airport Improvement Program 20.106 6,477
Airport Improvement Program 20.106 331
3,630,196
173
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Grantor/Program
U.S. Department of Transportation: (continued)
Pass - through program from:
Iowa Department of Transportation:
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Federal Transit Cluster:
Direct program:
Federal Transit - Capital Investment
Grants
Federal Transit - Capital Investment
Grants
Pass - through program from:
Iowa Department of Transportation:
Federal Transit - Capital Investment
Grants
Direct program:
Federal Transit - Formula Grants
Federal Transit - Formula Grants
ARRA - Federal Transit - Formula Grants
Pass - through program from:
Iowa Department of Transportation:
Federal Transit - Formula Grants
Total Federal Transit Cluster
Federal Services Programs Cluster:
Pass - through program from:
Iowa Department of Transportation:
Capital Assistance Program for Elderly
Persons and Persons with Disabilities
New Freedom Program
Total Federal Services Programs
Cluster
174
Federal
CFDA
Number
20.205
20.205
20.205
20.205
20.205
20.205
20.205
20.205
20.500
20.500
20.500
20.507
20.507
20.507
20.507
20.513
20.521
Pass - Through
Entity Identifying
Number
ESL - 2100 - (646) -75 -31
S TP -U -210 0 (63 4)- -70 -31
HDP- 2100 - (661) -71 -31
STP -A- 061 - 8(128) -22 -31
HDP- 2100 -(65 5) -71 -31
S TP -U- 2100(662)- -70 -31
S TP -E- 2100(619)- -8I -31
UYC -11 -001
IA -04 -0113
IA -95 -X003
IA -16 -X002
IA -57 -X009
Federal
Expenditures
$ 2,146,916
1,041,854
943,516
655,000
528,159
448,594
141,859
7,642
5,913,540
1,125,398
237,500
66,192
1,429,090
884,015
33,026
414
247,359
1,164,814
2,593,904
34,109
58,876
92,985
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Grantor /Program
Federal Pass - Through
CFDA Entity Identifying Federal
Number Number Expenditures
U.S. Department of Transportation: (continued)
Direct program:
Clean Fuels 20.519 $ 1,451,800
State and Community Highway Safety 20.600 15,217
State and Community Highway Safety 20.600 1,925
17,142
ARRA - Surface Transportation - Discretionary
Grants for Capital Investment 20.932
2,653,623
Total U.S. Department of Transportation 16,353,190
Environmental Protection Agency:
Direct program:
Climate Showcase Communities Grant
Program 66.041 213,927
Pass - through program from:
Iowa Finance Authority:
Capitalization Grants for Clean Water
State Revolving Funds 66.458 CS- 192427 -01 4,269,281
Capitalization Grants for Clean Water
State Revolving Funds 66.458 CS- 1920513 -01 412,739
ARRA - Capitalization Grants for Clean
Water State Revolving Funds 66.458 CS- 192421 -01 30,000
ARRA - Capitalization Grants for Clean
Water State Revolving Funds 66.458 CS- 192421 -01 148,104
ARRA - Capitalization Grants for Clean
Water State Revolving Funds 66.458 CS- 192421 -01 549,896
ARRA - Capitalization Grants for Clean
Water State Revolving Funds 66.458 CS- 192421 -01 729,000
Capitalization Grants for Clean Water
State Revolving Funds 66.458 CS- 192427 -01 2,950,840
9,089,860
Total Environmental Protection Agency 9,303,787
U.S. Department of Energy:
Direct program:
ARRA - Energy Efficiency and Conservation
Block Grant Program
175
81.128 112,574
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
Grantor/Program
U.S. Department of Health and Human Services:
Pass - through program from:
Dubuque County, Iowa Health Department:
Public Health Emergency Preparedness
Public Health Emergency Preparedness
Federal Pass- Through
CFDA Entity Identifying Federal
Number Number Expenditures
93.069
93.069
5882BT31 $ 3,313
5881BT31 149
3,462
Iowa Department of Public Health:
Environmental Public Health and
Emergency Response 93.070 5882LP03 5,709
Total U.S. Department of Health and Human Sery ices 9,171
Corporation for National and Community Service:
Pass - through program from:
Iowa Commission on Volunteers:
AmeriCorps 94.006 11-AC-13 15 8, 509
AmeriCorps 94.006 10 -AC-13 65,404
AmeriCorps 94.006 10 -AF -21 11,735
Total Corporation for National and Community Service
235,648
U.S. Department of Homeland Security:
Pass - through program from:
Iowa Department of Homeland Security:
Disaster Grants - Public Assistance 97.036 FEMA DR- 4018 -IA 670,366
Hazard Mitigation Grant 97.039 HMPG -DR- 1930 -31 -01 10,742
Direct program:
Assistance to Firefighters Grant 97.044 46,156
Assistance to Firefighters Grant 97.044 32,393
78,549
Total U.S. Department of Homeland Security 759,657
Total $ 44,208,305
176
City of Dubuque
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2012
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:
Program Title
Community Development Block Grants/Entitlement Grants
ARRA - Homelessness Prevention and Rapid Re- Housing Program
177
Federal Amount
CFDA Provided to
Number Subrecipients
14.218 $ 77,206
14.257 $ 146,587
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued Unqualified
Internal control over financial reporting:
Material weakness identified Yes
Significant deficiency Yes
Noncompliance material to financial statements noted No
Federal Awards
Internal control over major programs:
Material weakness identified No
Significant deficiency None reported
Type of auditor's report issued on compliance for major programs Unqualified
Any audit findings disclosed that are required to be reported in
accordance with Circular A -133, Section .510(a) No
Identification of major programs:
CFDA Number
14.228
14.257
15.622
20.106
Federal Transit Cluster
20.500
20.507
20.519
20.932
66.458
81.128
Name of Federal Program or Cluster
Community Development Block
Grants /State's Program and Non - Entitlement
Grants in Hawaii
ARRA — Homelessness Prevention and Rapid
Re- Housing Program
Sportfishing and Boating Safety Act
Airport Improvement Program
Federal Transit - Capital Investment Grants
ARRA — Federal Transit - Formula Grants
Clean Fuels
ARRA — Surface Transportation - Discretionary
Grants for Capital Investment
ARRA — Capitalization Grants for Clean Water
State Revolving Funds
ARRA — Energy Efficiency and Conservation
Block Grant Program
Dollar threshold used to distinguish
between Type A and Type B programs $1,326,249
Auditee qualified as low -risk auditee No
178
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part II: Findings Related to the Financial Statements:
MATERIAL WEAKNESS
II -A -12 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. In addition, a fund originally reported as a nonmajor fund was noted as meeting the major
fund criteria and was reported as such in the financial statements.
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. In addition, the implementation of a
full -time grant coordinator would be beneficial.
Response — The Finance Department will continue to receive relevant training, and management will
review all documentation completed by staff for use in preparing the financial statements and
Schedule of Expenditures of Federal Awards. Staffing will be reviewed in future budgets.
SIGNIFICANT DEFICIENCY
II -B -12 Journal Entry Documentation
Criteria — A properly designed system of internal control over financial reporting allows entities to
initiate, authorize, record, process, and report financial data reliably in accordance with generally
accepted accounting principles.
Condition — During the course of our engagement, we noted journal entries with inadequate
supporting documentation. In one instance, two entries were posted to record the same activity with
different dollar amounts. Both entries contained limited supporting documents. We also noted one
journal entry with no Finance Department review noted.
179
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part II: Findings Related to the Financial Statements: (continued)
Cause — There is currently no policy regarding the documentation to be included with journal entries.
Effect — The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendation — We recommend that the Finance Department write and enforce a strict journal
entry policy requiring adequate supporting documentation. The policy should contain requirements
for correcting entry documentation to include the original posting and an explanation of the necessary
change. It should also require detailed information for inter - department billings. In addition, journal
entries recording transfers between funds should include documentation of the City Council's
approval. The journal entry process should also be reviewed to ensure all entries are reviewed by the
Finance Department.
Response — The City will write a comprehensive policy that specifies the supporting documentation
to accompany journal entry adjustments, and the necessary approvals required based on dollar amount
and/or justification for the adjustment.
Part III: Other Findings Related to Required Statutory Reporting:
III -A -12 Certified Budget — Functional disbursements during the year ended June 30, 2012, did not exceed
the amount budgeted.
III -B -12 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 -12 Travel Expense — No expenditures of City money for travel expenses of spouses of City officials or
employees were noted.
III -D -12 Business Transactions — Business transactions between the City and City officials or employees are
detailed as follows:
Name, Title, and
Business Connection
Transaction
Description
Amount
Deb Stephenson, employee, spouse is Contracted Golf Pro $ 37,800
owner of GMS, Inc.
Joleen Murphy, employee, spouse is Construction 6,234
owner of Murphy Construction Group
Anne Link, employee, spouse is Parts and supplies 4,490
owner of Link Hydraulic & Supply
Ric Jones, council member, owner of Services 400
RJ Productions
Molly Menster, employee, spouse is Tina Sio Services 99
180
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part III: Other Findings Related to Required Statutory Reporting: (continued)
In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transactions with 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 transactions with GMS, Inc., Murphy Construction
Group and Link Hydraulic & Supply may represent a conflict of interest.
Recommendation — We recommend the City review the transactions with GMS, Inc., Murphy
Construction Group and Link Hydraulic & Supply with legal counsel.
Response — In March 2012, contracted golf pro was hired as a City employee eliminating a conflict
with Iowa Code. The transactions with Murphy Construction Group and Link Hydraulic and Supply
are being reviewed with legal counsel.
III -E -12 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 -12 Council Minutes — No transactions were found that we believe should have been approved in the
Council minutes but were not.
III -G -12 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 -12 Revenue Debt — The Water Utility revenue debt covenants include a requirement for the utility to
produce net revenues of at least 125% of the current year debt service requirement of the Series 2008
water utility revenue bonds, and all other revenue bonds or notes ranking on a parity with the 2008
water utility revenue bonds. In January of 2011, the City entered into a subordinate agreement with
the Iowa Finance Authority (lender for the water revenue capital loan notes) which retroactively
subordinates the water revenue capital loan notes in relation to the Series. This agreement allows the
City to exclude the water revenue loan notes in the 125% computation until December 31, 2015. Even
when the water revenue capital loan notes are excluded, the City still did not meet the 125%
requirement for fiscal year 2012.
The Sewage Disposal Works' revenue capital loan notes include a requirement for the utility to
produce net revenues of at least 110% of the current year debt service requirement. The Sewage
Disposal Works did not meet this requirement in fiscal year 2012.
No instances of non - compliance with the provisions of the Stormwater Utility revenue debt
resolutions were noted.
Recommendation — The City should review the bond covenant requirements and contact their bond
consultants.
181
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2012
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
Response — During the year ended June 30, 2012, the City did not meet the revenue bond covenants
for Water Revenue Bonds by $423,890. Water Utility experienced higher than normal maintenance
expenses due to flood damage and a change in accrued employee compensation. Rates for Fiscal Year
2013 were increased by 15 %. An additional rate increase is planned for Fiscal Year 2014. Water
consumption for the first 5 months of Fiscal Year 2013 is up approximately 5% over the same period
in Fiscal Year 2012.
During the year ended June 30, 2012, the City was $404,774 under this requirement. Sewer utility
experienced higher than normal maintenance expenses due to flood damage and a change in accrued
employee compensation. Rates for Fiscal Year 2013 were increased by 15 %. An additional rate
increase is planned for Fiscal Year 2014. Water consumption for the first 5 months of Fiscal Year
2013 is up about 5% over the same period in 2012, this has a direct correlation with revenue increase
in sewer.
II -I -12 Solid Waste Tonnage Fees Retained — No instances of non - compliance with the solid waste fees
used or retained in accordance with provisions of Chapter 455B.310 of the Code of Iowa by the
Dubuque Metropolitan Area Solid Waste Agency, a component unit of the City, were noted.
III -J -12 Financial Assurance — The Dubuque Metropolitan Area Solid Waste Agency, a component unit of
the City, has demonstrated financial assurance for closure and postclosure care costs by establishing a
local government dedicated fund as provided in 567- 113.14(6) of the Iowa Administrative Code.
182
EicieBailly
CPAs & BUSINESS ADVISORS
December 18, 2012
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
We have audited the financial statements of the governmental activities, the business -type activities, the
aggregate discretely presented component units, each major fund, and the aggregate remaining fund
information of the City of Dubuque, Iowa, for the year ended June 30, 2012. We did not audit the
financial statements of Dubuque Initiatives and Subsidiaries (a discretely presented component unit).
Those financial statements were audited by other auditors whose report thereon has been furnished to us,
and our opinion, insofar as it relates to the amounts included for Dubuque Initiatives and Subsidiaries, is
based on the report of the other auditors. Professional standards require that we provide you with
information about our responsibilities under generally accepted auditing standards, Government Auditing
Standards and OMB Circular A -133, as well as certain information related to the planned scope and
timing of our audit. We have communicated such information in our letter to you dated May 4, 2012.
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 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 the year
ended June 30, 2012. 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 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.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 I Dubuque, IA 52002 -2273 I T 563.556.1790 I F 563.557.7842 I EOE
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 2
Management's estimate of incurred but not reported health insurance and workers' compensation
liabilities are based on third -party administrator's calculations and estimates. We evaluated the
key factors and assumptions used to develop incurred by not reported liabilities in determining
that they are reasonable in relation to the financial statements taken as a whole.
Management's estimate of other postemployment benefits liability is based on a calculation of
actuarially determined contributions for health insurance benefits. We evaluated the key factors
and assumptions used to develop other postemployment benefits liability in determining that it is
reasonable in relation to the financial statements taken as a whole.
The financial statement disclosures are neutral, consistent, and clear.
Difficulties Encountered in Performing the Audit
We encountered no significant difficulties in dealing with management in performing and completing our
audit.
Corrected and Uncorrected Misstatements
Professional standards require us to accumulate all known and likely misstatements identified during the
audit, other than those that are clearly trivial, and communicate them to the appropriate level of
management. Management has corrected all such misstatements. The following material misstatements
detected as a result of audit procedures were corrected by management:
General and Street Construction
To reduce grant receivable and allocate remaining receivable to correct funds $ 556,147
Sewage Disposal Works
To reduce operating revenue and construction in progress for insurance
proceeds
1,376,514
To increase operating expenses and decrease transfers out for reimbursement
type transfers to General Fund 641,798
To increase net assets invested in capital assets, net of related debt, and decrease
unrestricted net assets for noncapital debt inadvertently included in the net assets
invested in capital asset calculation
Water Utility
To increase operating expenses and decrease transfers out for reimbursement
type transfers to General Fund
2,349,463
605,433
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 3
Sales Tax Construction
To increase intergovernmental revenue and expenses for activity which the City
inadvertently netted
Governmental Activities
To increase net assets invested in capital assets, net of related debt, and decrease
unrestricted net assets for noncapital debt inadvertently included in the net assets
invested in capital asset calculation
Disagreements with Management
$ 1,775,056
4,500,000
For purposes of this letter, a disagreement with management is a financial accounting, reporting, or
auditing matter, whether or not resolved to our satisfaction, that could be significant to the financial
statements or the auditor's report. We are pleased to report that no such disagreements arose during the
course of our audit.
Management Representations
We have requested certain representations from management that are included in the management
representation letter dated December 18, 2012.
Management Consultations with Other Independent Accountants
In some cases, management may decide to consult with other accountants about auditing and accounting
matters, similar to obtaining a "second opinion" on certain situations. If a consultation involves
application of an accounting principle to the City's financial statements or a determination of the type of
auditor's opinion that may be expressed on those statements, our professional standards require the
consulting accountant to check with us to determine that the consultant has all the relevant facts. To our
knowledge, there were no such consultations with other accountants.
Other Audit Findings or Issues
We generally discuss a variety of matters, including the application of accounting principles and auditing
standards, with management each year prior to retention as the City's auditors. However, these
discussions occurred in the normal course of our professional relationship, and our responses were not a
condition to our retention.
Other Information in Documents Containing Audited Financial Statements
With respect to the supplementary information accompanying the financial statements, we made certain
inquiries of management and evaluated the form, content, and methods of preparing the information to
determine that the information complies with accounting principles generally accepted in the United
States of America, the method of preparing it has not changed from the prior period, and the information
is appropriate and complete in relation to our audit of the financial statements. We compared and
reconciled the supplementary information to the underlying accounting records used to prepare the
financial statements or to the financial statements themselves.
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 4
This information is intended solely for the use of the Mayor, City Council, and management of the City of
Dubuque, Iowa, and is not intended to be, and should not be, used by anyone other than these specified
parties.
Sincerely,
EIDE BAILLY LLP
C SG
l��z� T
Masterpiece on the Mississippi
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
SUBJECT: Responses to Auditor's Findings
DATE: January 3, 2013
INTRODUCTION
Dubuque
kagil
All- America City
2007
The Auditor's Communication with Those Charged with Governance letter was issued
by Eide Bailly LLP on December 18, 2012 and is hereby submitted. The letter is
required by SAS 114 and was formally referred to as the management letter.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2012 details specific findings. Pages 178 -182 of the report provide this information
and city responses. In addition to the comments in the report, the Auditor's
Communication with Those Charged with Governance letter dated December 18, 2012
was issued which includes more general comments relative to the audit.
DISCUSSION
Most of the information in the Auditor's Communication with Those Charged with
Governance does not warrant a response.
II -A -12 Material Audit Adjustments (Page 179 in CAFR)
The City recorded a FEMA grant as general fund revenue. A portion should have been
recorded as enterprise and other governmental funds. Auditors proposed that
receivables be reallocated to the proper funds. Entry was made and is reflected in
financial statements.
The City's Tax Increment Financing (TIF) Fund met the revenue requirements of a
major fund for the first time. Auditors identified that the TIF fund should be moved from
non -major to major and is reflected accordingly on the financial statements.
The Finance Department will continue to receive relevant training, and management will
review all documents completed by staff for use in the financial statements and
Schedule of Expenditures of Federal Awards.
II -B -12 Journal Entry Documentation (Page 179 in CAFR)
The auditors noted journal entries with inadequate supporting documentation and
suggested that the City develop a comprehensive formal policy identifying acceptable
documentation and approvals. The Finance Department is in the process of developing
this policy.
III -D -12 — Related Parties Transactions (Page 180 in CAFR)
During preparation for City audit, staff identified three vendors whose owners were
related to City employees. It is not always apparent to departments when City
employees are related to business owners. The City is in the process of developing
further procedures to be more proactive in identifying potential related party
transactions.
III -H -12 Bond Covenants (Page 181 in CAFR)
The Water Utility revenue debt covenants include a requirement for the utility to produce
net revenue of at least 125% of the current year debt service requirement. The Sewer
Utility revenue capital loan notes include a requirement for the utility to produce net
revenues of at least 110% of the current year debt service requirement. Water and
Sewer did not meet their debt covenant requirements.
Both utilities experienced higher than normal maintenance expenses due to the July
2011 flood, and had increased expenses due to a change in accrued employee
compensation. Fiscal Year 2013 rates for both utilities had a 15% rate increase, and
have experienced approximately 5% increase in usage for first five months of FY'13.
An additional rate increase is anticipated in 2014. A mid -year analysis of net revenue
available for debt service requirements will be conducted.
KT /eml