Comprehensive Annual Financial Report (CAFR) FY Ended June 30, 2013Masterpiece on the Mississippi
TO: The Honorable Mayor and City Council Members
FROM: Michael C. Van Milligen, City Manager
Dubuque
band
AI- America City
1
2007 • 2012 • 2013
SUBJECT: Submission of Fiscal Year Ended June 30, 2013 Comprehensive Annual
Financial Report (CAFR), Auditor's Communication with Those Charged
with Governance and City Responses to Findings
DATE: January 27, 2014
Finance Director Ken TeKippe is transmitting the Fiscal Year 2013 Comprehensive
Financial Report (CAFR), Auditor's Communication with Those Charged with
Governance Letter, along with the City Finance staff's responses to auditor's findings.
The City's independent auditor issued an unqualified opinion on the financial
statements.
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Mic ael C. Van Milligen
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Attachment
cc: Barry Lindahl, City Attorney
Cindy Steinhauser, Assistant City Manager
Kenneth J. TeKippe, Finance Director
THE CITY OF
Dui
Masterpiece on the Mississippi
Dubuque
trati
M- America City
�1111!
2007 • 2012 • 2013
TO: Michael C. Van Milligen, City Manager
FROM: Kenneth J. TeKippe, Finance Director
DATE: January 22, 2014
SUBJ ECT: Submission of Fiscal Year Ended June 30, 2013 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 2013 CAFR audited by Eide Bailly, LLP, Auditor's
Communication with Those Charged with Governance Letter along with the City Finance staffs responses to auditor's
findings. 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. Governmental fund financial
statements are reported using the current financial resources measurement focus and the modified accrual basis of
accounting.
Separate financial statements are required for Dubuque Metropolitan Area Solid Waste Agency and Dubuque Initiatives and
Subsidiaries and have been received. The financial information for these entities is included in the City of Dubuque CAFR.
AUDITOR'S 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 2013 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. Finance staff will also be attending the meeting.
Prepared by:
KT /eml
Enclosures: Fiscal Year 2013 CAFR
Auditor's Communication with Those Charged with Governance Letter
Responses to Auditor's Findings
PORT OF DUBUQUE MARINA
Dubuque
THE CITY OF
DUBUQUE
CAFR
COMPREHENSIVE ANNUAL FINANCIAL REPORT
Fiscal Year Ended June 30, 2013
About the Cover:
Nestled in the Ice Harbor of Dubuque, the Port of Dubuque
Marina allows transient boaters to securely dock their boats
within walking distance of restaurants and entertainment.
The marina project was completed in June of 2013, and was
made possible by $3,037,802 in Federal Grant funds with a
matching contribution of $1,088,950 in City funding. This
transient marina consists of 70 slips that can accommodate
boats up to 90 feet in length and includes water and
electrical connections, a fuel dock, sanitary pump -out
equipment, as well as shower and laundry facilities.
Included in the project, a 3,000 square foot marina ship store
and shower facility provides boaters with first class amenities
to enhance their stay. The store is open daily from May
through October with access to beverages and food. More
information about the marina and store hours can be viewed
online at www.portofdubuquemarina.com or by calling the
Port of Dubuque Marina at 563- 582 -5524.
Photo by:
Erich Moeller
Cover Design by:
Kelli Buchenau
Copy provided by:
Dan Kroger
Comprehensive Annual Financial Report
June 30, 2013
City of Dubuque, Iowa
Prepared by:
Department of Finance
3
4
Introductory Section
June 30, 2013
City of Dubuque, Iowa
6
CITY OF DUBUQUE, IOWA
Table of Contents
Exhibit Page
INTRODUCTORY SECTION
Table of Contents 7 -8
Letter of Transmittal 9 -18
City Organizational Chart 19
Officials 20
Certificate of Achievement for Excellence in Financial Reporting 21
FINANCIAL SECTION
Independent Auditor's Report 25 -27
Management's Discussion and Analysis 28 -37
Basic Financial Statements
Government -wide Financial Statements
Statement of Net Position 1 40 -41
Statement of Activities 2 42
Fund Financial Statements
Balance Sheet — Governmental Funds 3 43
Reconciliation of the Governmental Funds Balance Sheet to the
Statement of Net Position 3 -1 44
Statement of Revenues, Expenditures, and Changes in Fund
Balances — Governmental Funds 4 45
Reconciliation of the Governmental Funds Statement of Revenues,
Expenditures, and Changes in Fund Balances to the Statement of
Activities 4 -1 46
Statement of Net Position — Proprietary Funds 5 48 -51
Statement of Revenues, Expenses, and Changes in Fund Net Position
— Proprietary Funds 6 52 -53
Statement of Cash Flows — Proprietary Funds 7 54 -57
Statement of Fiduciary Assets and Liabilities — Agency Funds 8 58
Notes to Financial Statements 59 -94
Required Supplementary Information
Schedule of Receipts, Expenditures, and Changes in Balances — Budget
and Actual (Budgetary Basis) — Governmental Funds and Enterprise Funds 96
Note to Required Supplementary Information — Budgetary Reporting 97
Schedule of Funding Progress for the Retiree Benefit Plan 98
Combining Fund Statements
Combining Balance Sheet — Nonmajor Governmental Funds A -1 102 -104
Combining Statement of Revenues, Expenditures, and Changes in
Fund Balances — Nonmajor Governmental Funds A -2 106 -108
Combining Statement of Net Position — Nonmajor Enterprise Funds B -1 110
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position — Nonmajor Enterprise Funds B -2 111
Combining Statement of Cash Flows — Nonmajor Enterprise Funds B -3 112 -113
Combining Statement of Net Position — Internal Service Funds C -1 116 -117
Combining Statement of Revenues, Expenses, and Changes in Fund Net
Position (Deficit) — Internal Service Funds C -2 118 -119
Combining Statement of Cash Flows — Internal Service Funds C -3 120 -121
Combining Statement of Changes in Assets and Liabilities — Agency Funds D -1 123
CITY OF DUBUQUE, IOWA
Table of Contents
Table Page
STATISTICAL SECTION (Unaudited)
Statistical Section Contents 127
Financial Trends
Net Position by Component 1 128 -129
Changes in Net Position 2 130 -133
Fund Balances of Governmental Funds 3 134 -135
Changes in Fund Balances of Governmental Funds 4 136 -137
Revenue Capacity
Taxable and Assessed Value of Property 5 138
Property Tax Rates — Direct and Overlapping Governments 6 139
Principal Property Taxpayers 7 140
Property Tax Levies and Collections 8 141
Debt Capacity
Ratios of Outstanding Debt by Type 9 142 -143
Ratios of General Bonded Debt Outstanding 10 144
Direct and Overlapping Governmental Activities Debt 11 145
Legal Debt Margin Information 12 146 -147
Revenue Debt Coverage 13 148
Water and Sewer Receipt History 14 149
Water Meters by Rate Class 15 150
Largest Water and Sewer Customers 16 151
Demographic and Economic Information
Demographic and Economic Statistics 17 152
Principal Employers 18 153
Operating Information
Full -Time Equivalent City Government Employees by
Function/Department 19 154 -155
Operating Indicators by Function/Program 20 156 -157
Capital Asset Statistics by Function 21 158 -159
COMPLIANCE SECTION
Independent Auditor's 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
163 -164
Independent Auditor's Report on Compliance for Each Major Program and
on Internal Control Over Compliance Required by OMB Circular A -133 165 -166
Schedule of Expenditures of Federal Awards
Notes to the Schedule of Expenditures of Federal Awards
Schedule of Findings and Questioned Costs
167 -171
172
173 -176
Summary Schedule of Prior Federal Audit Findings 177
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THE CITY OF
Dubuque
Masterpiece on the Mississippi
January 15, 2014
Honorable Mayor, City Council Members, and
Citizens of the City of Dubuque
Finance Department
50 West 13th 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, 2013, 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 2013. In addition to meeting the
requirements set forth in state statutes, the audit also was designed to meet the requirements of an annual
single audit in conformity with the U.S. Office of Management and Budget Circular A -133, Audits of
States, Local Governments and Non - Profit Organizations. Information related to this single audit,
including the Schedule of Expenditures of Federal Awards, findings and recommendations, and the
auditor's report on internal control over financial reporting and compliance with requirements applicable
to laws, regulations, contracts, and grants, are included in the Compliance Section of this report. The
independent auditors' report is included in the Financial Section of this report.
This report includes all funds of the City of Dubuque, as well as its component units. Component units
are legally separate entities for which the City of Dubuque is financially accountable. The City provides a
full range of services including police and fire protection, sanitation services, the construction and
maintenance of roads, streets and infrastructure, inspection and licensing functions, maintenance of
grounds and buildings, municipal airport, library, recreational activities and cultural events. In addition to
general government activities, the municipality owns and operates enterprises for a water system, sanitary
sewer system, storm water system, parking facilities, refuse collection, salt sales, 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
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Council of the City of Dubuque, Iowa on matters of community interest, and in the event of dissolution,
any assets or property of the organization are transferred to the City. In 2009, the City of Dubuque
guaranteed debt issued by Dubuque Initiatives and Subsidiaries.
Generally Accepted Accounting Principles (GAAP) requires 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. As of October
2013, the City unemployment rate was 3.7% and County rate was 3.6 %, well below the 4.6% state and
7.3% national unemployment rates.
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
According to the Federal Housing Finance Agency (FHFA) Changes in the Metropolitan Area House
Price Indexes, Five Year average through third quarter 2013, Dubuque's home value increased 9.71 %.
Nationwide the increase is only 0.15 %.
According to the US Department of Commerce Bureau of Economic Analysis Dubuque has the fastest
growing economy in Iowa and one of the top 30 growing economies in the United States. Dubuque was
#1 in Iowa for Private Sector Job Growth in Iowa in 2010, 2011 and 2012. Dubuque was also ranked #4
among overall metros with the largest average annual increases in wages and salaries in the 2012's
"America's Best Places for a Raise."
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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.
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. Over 251 acres have been sold and 24 businesses have located in the DICW, which include
21 local business expansions and 3 new industries. The City completed the last of these five farms and
held a ribbon cutting November 2013. The City works with the Greater Dubuque Development
Corporation to evaluate sites for future industrial areas. IWI added 30,350 square feet of additional
warehouse space in 2013.
The Dubuque Technology Park
Located on the south side of the City is a 100 -acre park designed to accommodate growing office
businesses. Eight businesses have located in the park.
Over $100 million has been spent in the downtown area. More than 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 relocated existing staff to the third floor of the building in October 2012, and
committed to create 50 new jobs in 2013.
In the City's Millwork District, The Schmid Innovation Center, a $28 million private renovation project
received two awards of $3 million and $5.9 million in CDBG funds to develop workforce housing. The
72 -unit residential project was completed in September 2012. Nonprofits have moved into the basement
space. Several commercial tenants occupy the first floor with a food co -op scheduled for opening spring
of 2014. Renovation of 76 residential units in the Novelty Iron Works building has begun.
In response to a critical need for affordable housing for seniors and disabled individuals, The Rose of
Dubuque assisted living facility opened its doors for occupancy in October 2012. This 70 -unit complex is
the first affordable, income qualified facility in Dubuque to also be licensed to offer assisted living
services on -site. The Rose of Dubuque has partnered with the City of Dubuque Housing and Community
Development Department and enrolled seventeen apartments in the Dubuque project -based voucher
program.
Commercial development continues with construction of a new 114,000 square foot Blain's Farm & Fleet
retail store beginning shortly. New stores recently opened or currently under construction include Dairy
Queen, Kwik Stop, Dunkin Donuts, T.J. Maxx, Dubuque Mattress and O'Reilly Auto Parts.
On June 1, 2013 the City dedicated and opened the $4 million Port of Dubuque Marina, 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.
Recent community investment in education includes the University of Dubuque's $30 million Performing
Arts and Campus Center, completed in 2013. The University has begun construction of a new student
residence hall scheduled for completion by fall of 2014 and a new intramural /practice facility. Clarke
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University completed a $13 million 46,000 square -foot, three story science center. Loras College
continues progress on its $4 million Parkway. Phase I completed in 2012. 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 lounge site. The dining venue could be a national chain. The completed
parkway will 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. In the spring of 2013, Dubuque Community School district completed
the $10 million renovation of Dubuque Senior High School's Dalzell Field. Hempstead High School's
$33 million project which consists of a new auditorium, additional gymnasium and two remodeled wings
of the existing building is currently underway. The Kennedy elementary school is undergoing a $7
million renovation.
UnityPoint Health Finley Hospital has a $42 million renovation starting in early 2014. This 40,000
square foot addition will house the Finley Heart and Vascular Center, and new Emergency and Surgery
departments. The new facility will be built on the west side of the current hospital structure facing
Grandview Avenue.
The City's recent awards and recognition from a variety of sources including:
• Dubuque was named a 2013 All- America City by the National Civic League for a community
initiative to improve grade -level reading. Dubuque was named in 2007 and 2012
• Dubuque was ranked 14th in the nation in Forbes' annual "Best Small Places" (August 2013)
• Forbes placed Dubuque 50th of 179 small cities for the Cost of Doing Business (August 2013)
• Site Selection magazine's annual "Top Metropolitan Areas" places Dubuque at 5th in the U.S.
in 2013 for metro areas with under 200,000 people
• Farmers Insurance listed Dubuque as the 10"' Most secure Small City in the U.S. (2013)
• Milken Institute ranked Dubuque as the 10"' Best - Performing Small Metro (2013)
• Kiplinger's Personal Finance named Dubuque as One of 10 Great Places to Live (2013)
• 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
• The America's Promise Alliance named Dubuque one of its 100 Best places for Young People
in 2012, 2011,20110,2008 and 2007
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.
Fall 2012 saw construction beginning on the Dubuque Regional Airport New Airline Passenger Terminal
Facility and the Aircraft Parking Apron, while continuing the effort to meet current and forecasted
passenger demand for Dubuque and the surrounding communities. This project element is scheduled to
be completed in 2014. The Dubuque Regional Airport received its 22nd consecutive year of perfect
compliance with Federal Aviation Regulation (FAR) Part 139. FAR Part 139 governs safety standards for
airfield operations and airfield maintenance at airports served by commercial airlines.
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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 84% 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 City continues to implement components of the Drainage Basin Master Plan adopted in 2001 and
amended in 2013. Improvements in the North Fork Catfish Creek Drainage Basin have been addressed
with expanded detention along the Northwest Arterial and conveyance improvements along the North
Fork Catfish Creek between the Northwest Arterial and Pennsylvania Avenue. The City continues to
implement the various phases of the Bee Branch Watershed Flood Mitigation Project to address flooding
in the Bee Branch Drainage Basin.
The Drainage Basin Master Plan engineering firm's analysis predicted that over 1,155 homes and
businesses in the Bee Branch Watershed are at risk of flood damage during heavy rains. Flooding was
witnessed firsthand in Dubuque six times since 1999. A subsequent study in 2009 by the Federal
Emergency Management Agency (FEMA) identified a flood prone area in the Bee Branch Watershed
impacting 1,373 properties. Of the seven Presidential Disaster Declarations issued between 1999 and
2011, six have hit the Bee Branch Watershed particularly hard with estimated damages totaling $69.8
million, or about $5.8 million annually.
Construction of the new Carter Road Detention Basin and expansion of the W. 32nd Street Detention
Basin is complete. With federal funding from the U.S. Department of Transportation through the
Transportation Investment Generating Economic Recovery (TIGER) grant, the City's first pervious
pavement street was constructed in the area known as the Historic Millwork District. The City has also
started reconstructing alleys with pervious pavement systems, completing eight of the 240 planned in the
watershed. Of all the improvements associated with the twelve -phase Bee Branch Watershed Flood
Mitigation Project, only the pervious pavement systems appreciably reduce the volume of floodwaters.
Construction of the improvements associated with the Lower Bee Branch Creek Restoration began in
2010 and is scheduled to be complete in 2014. As outlined in the Drainage Basin Master Plan and the
Bee Branch Creek Alignment Study, the Lower Bee Branch Creek Restoration includes the construction
of the 2,500 foot long creek and flood plain area from Kerper Boulevard west and north to the railroad
tracks just south of Garfield Avenue, replacing the underground Bee Branch storm sewer. In addition to
"day- lighting" and restoring the Bee Branch Creek, this phase included the restoration of the floodplain,
dredging of the 16th Street Detention Basin, relocation of utilities, and reworking the street system
through the area to accommodate the new flood mitigation facility and the redevelopment of adjacent
private property. Creek "day - lighting" required the construction of two bridges, maintenance access to the
creek, hike /bike trail, safety and security measures, vegetation, recreational components and overlook
areas for better monitoring of the creek. The acquisition of property is required to make room for the
"day- lighted" creek and floodplain. Additional phases currently under design include:
• Flood Mitigation Gate Replacement, which involves the replacement of the flood mitigation
gates, repair of the concrete gate structure and concrete wing walls, installation of check valves
on the pump discharges, and installation of new air release valves at the Mississippi River
floodwall's Bee Branch pumping station.
• Upper Bee Branch Creek Restoration which involves the removal of a buried storm sewer and
replacing it with a 2,300 foot long creek and flood plain area from where the Lower Bee Branch
Creek Restoration terminates just south of Garfield Avenue north to 24th Street. In addition to the
restoration/day - lighting of the creek and floodplain, this phase includes the construction of
vehicular and pedestrian bridges, bike/hike trails (that includes replacement of what has to be
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removed to restore the creek), multiuse maintenance access, utility relocations, vegetation,
overlooks, safety and security measures, parking, and education and recreational components.
The acquisition of property is required to make room for the "day- lighted" creek and floodplain.
The Upper Bee Branch Creek Restoration Project includes the construction of large diameter
culverts under the Canadian Pacific (CP) Railroad yard and Garfield Avenue. It also includes
property acquisitions (both partial and full), roadway reconfigurations, construction of bridge
crossings and an outfall at 24th Street where the existing Bee Branch storm sewer will remain.
• 22nd Street Storm Sewer Improvements which involves the construction of a large diameter
storm sewer from 22nd Street west across Central Avenue.
• Flood Mitigation Maintenance Facility designed to maintain the mile long creek and floodplain
areas and ensure they function as designed, when necessary, a Flood Mitigation Maintenance
Facility is planned near 16th and Elm Streets in the vicinity of the Lower Bee Branch Creek
Restoration. In addition to providing work space for City employees assigned to maintaining the
Bee Branch Creek Restoration the facility provides public restrooms which will double as a storm
shelter. Parking will also be provided.
• North End Storm Sewer Improvements upgrading the storm sewers within the heart of the at risk
properties on 25th, 26th, 27th, 28th, 29th, and 30th Streets between White and Elm Streets.
• Water Plant Flood Protection to equip the plant with a permanent concrete floodwall along the
existing alignment of the property fence line, with the ability to deploy temporary measures at the
access point openings.
• 17th Street Storm Sewers involving the construction of a large diameter storm sewer from Elm
Street to W. Locust Street and Dorgan Place to safely convey more stormwater from the W.
Locust Street sub - watershed to the restored Lower Bee Branch Creek.
The entire $179 million ($201 million with financing costs) Bee Branch Watershed Flood Mitigation
Project is scheduled to be complete over the course of 20 years with the most significant improvements
completed in the next six years. The project is being funded through a variety of local, state and federal
funding sources as outlined below:
Project Funding Sources
U.S. DOT TIGER Grant
I -Jobs II Grant
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RECAT Grant
U.S. DOT National Scenic Byways Grant
State Recreational Trail Grant
U.S. Economic Development Administration
Dubuque Metropolitan Area Transportation Study
U.S. EPA Clean Water SRF Federal Financial Assistance
General Obligation Bonds
Private Donations
Stormwater Utility Fees
Sales of Assets and Land
State of Iowa Sales Tax Increment
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Beginning in 2006, the Dubuque City Council identified becoming a more sustainable city as one of its
top priorities. They identified the vision that, "Dubuque is a viable, livable and equitable community.
We embrace economic prosperity, social /cultural vibrancy, and environmental integrity in order to create
a more sustainable legacy for generations to come." 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 the
50% by 2030 Community Climate Action & Resiliency Plan, and a variety of neighborhood -
based initiatives.
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 integrates community engagement and education, more energy - efficient ways of
operating municipal services, decreased carbon emissions, new job creation, increased financial savings,
and a higher quality of life for the entire community. Smarter Sustainable Dubuque provides 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, discards, and
health and wellness. 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 and travel habits.
A grand opening ceremony was held in October 2013 for the $64 million renovation of the Water and
Resource Recovery Center (W &RRC). Construction of the new W &RRC facilities required 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. Final completion of the
project is scheduled for February 2014. An additional cogeneration project to generate heat and electricity
will be completed by January 2014. The projects are funded by state revolving loan funds repaid with
sanitary sewer user fees.
The City of Dubuque's Transit Division is working on designing a $12 million intermodal facility and a
$4.2 million renovation to the former public works building for use as a bus maintenance center. Part of
the project will be funded with an $8 million grant from the U.S. Federal Transit Administration. The
intermodal facility will be located in the Millwork District and include a 292 space three level ramp,
connecting walkway to bus transfer areas, local transit driveway, intra -city and inter -city buses and
taxicabs. The projects are scheduled for completion in 2015.
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
15
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
• EnvironmentaFEcological 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, 2013, 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
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
16
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 fmancial section of this report, the City
continues to meet its responsibility for sound fmancial 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 $774,846 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 $871,673 deficit as of June 30, 2013. A 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 $619,859 as of June 30, 2013. 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 reaffirmed 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 City's revenue
bonds are rated Aa3.
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.
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, 2012. This was
the 25th 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 fmancial 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, 2014. In order to receive this award, a
17
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 8th 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,
Michael C. Van Milligen
City Manager
Kenneth J. TeKippe, CPA
Finance Director
18
! 1
Planning Services
Department
1
Health
Services
Department
1
Hou ing &
Community
Development
l J
l ! 1
Information
Services
Deoartm ent
l 1
CITY OF DUBUQUE ORGANIZATIONAL CHART
Library
Citizens
City Attorney
City Council
City Clerk
1
Assistant City Manager (2)
Personnel Manager
Sustainable Community
Coordinator
Budget Directo
Assistant B dget
Directo
City Manager
Airport
Public Information Officer
Cable TV
Geographi
Informatio
Systems
Neighborhood Development
Specialist
Arts Coordinator
Building
Services
Department
! 1
Economic
Development
Department
Parking Division
Transit Division
Eme gency
Communications
Department
Finance
Department
1
! 1
Fire
Depa tment
I 1
Ambulance
Services
Emergency
1
Human Rights
Department
I 1
l
Training &
Workforce
Development
1
Human Relations
Coordinator
Leisure
Services
Department
l
Civic enter
Recreation
Park
Grand River
Center
M ticultural
Family Center
Public Works
Department
•
Police
Department
!
Engineering
Department
Water
Department
l
Water &
Resource
Recovery Center
19
CITY OF DUBUQUE, IOWA
OFFICIALS
JUNE 30, 2013
CITY COUNCIL
Roy D. Buol
Ric 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
Phillip J. Wagner
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 — 1st Ward
Council Member — 2nd Ward
Council Member — 3rd Ward
Council Member — 4th 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
Acting 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
20
Government Finance Officers Association
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, 2012
Executive Director /CEO
21
22
Financial Section
June 30, 2013
City of Dubuque, Iowa
23
24
EideBailly
CPAs Cu BUSINESS ADVISORS
Independent Auditor's Report
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on the Financial Statements
We have audited the accompanying financial statements of the governmental activities, the business -type
activities, the aggregate discretely presented component units, each major fund, and the aggregate
remaining fund information of the City of Dubuque, Iowa as of and for the year ended June 30, 2013, and
the related notes to the financial statements, which collectively comprise the City's basic financial
statements as listed in the table of contents.
Management's Responsibility for the Financial Statements
Management is responsible for the preparation and fair presentation of these financial statements in
accordance with accounting principles generally accepted in the United States of America; this includes
the design, implementation, and maintenance of internal control relevant to the preparation and fair
presentation of financial statements that are free from material misstatement, whether due to fraud or
error.
Auditor's Responsibility
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, which represent 79 percent,
71 percent, and 57 percent of the assets, net position, 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 from material misstatement. The financial statements of
Dubuque Initiatives and Subsidiaries, a discretely presented component unit, were not audited in
accordance with Government Auditing Standards.
www.eidebailly.com
3999 Pennsylvania Ave., Ste. 100 1 Dubuque, IA 52002 -2273 1 T 563.556.1790 1 F 563.557.7842 1 EOE
25
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial statements. The procedures selected depend on the auditor's judgment, including the
assessment of the risks of material misstatement of the financial statements, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the entity's preparation
and fair presentation of the financial statements in order to design audit procedures that are appropriate in
the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the entity's
internal control. Accordingly, we express no such opinion. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of significant accounting estimates
made by management, as well as evaluating the overall presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our audit opinions.
Opinions
In our opinion, based on our audit and the report of other auditors, the financial statements referred to
above present fairly, in all material respects, the respective financial position of the governmental
activities, the business -type activities, the aggregate discretely presented component units, each major
fund, and the aggregate remaining fund information of the City of Dubuque, Iowa, as of June 30, 2013,
and the respective changes in financial position and, where, applicable, cash flows thereof for the year
then ended in accordance with accounting principles generally accepted in the United States of America.
Other Matters
Required Supplementary Information
Accounting principles generally accepted in the United States of America require that the management's
discussion and analysis and the other required supplementary information 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 inquires of management about the methods of preparing the information
and comparing the information for consistency with management's responses to our inquires, 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.
Other Information
Our audit was conducted for the purpose of forming opinions on the financial statements that collectively
comprise the City of Dubuque, Iowa's financial statements. 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
Organization, and is also not a required part of the financial statements.
26
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 basic financial statements. Such information has been subjected to
the auditing procedures applied in the audit of the basic financial statements and certain additional
procedures, including comparing and reconciling such information directly to the underlying accounting
and other records used to prepare the basic financial statements or to the basic financial statements
themselves, and other additional procedures in accordance with auditing standards generally accepted in
the United States of America. In our opinion, the combining nonmajor fund financial statements and the
schedule of expenditures of federal awards are fairly stated, in all material respects, in relation to the basic
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.
Other Reporting Required by Government Auditing Standards
In accordance with Government Auditing Standards, we have also issued a report dated January 15, 2014,
on our consideration of the City of Dubuque, Iowa's internal control over financial reporting and on our
tests of its compliance with certain provisions of laws, regulations, contracts, grant agreements, and other
matters. The purpose of that report is to describe the scope of our testing of internal control over financial
reporting and compliance and the results of that testing, and not to provide an opinion on the internal
control over financial reporting or on compliance. That report is an integral part of an audit performed in
accordance with Government Auditing Standards in considering the City's internal control over financial
reporting and compliance.
e-,e,-,, 2 , rs
Dubuque, Iowa
January 15, 2014
27
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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, 2013. 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 net position of the City of Dubuque remained constant at $501,045,202 compared to net
position of $501,055,013 for fiscal year 2012.
• Governmental program revenues decreased $15,354,360 due to lower grant revenue in fiscal year
2013 over fiscal year 2012 along with a program expenses decrease of $2,416,463 from fiscal
year 2012.
• The City's business type activities program revenues decreased $1,581,318 due to decreased grant
revenues along with program expenses decrease of $62,189 from fiscal year 2012.
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 position presents information on all of the City's assets and liabilities, with the
difference between the two reported as net position. Over time, increases or decreases in net position 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 position changed during the
most recent fiscal year. All changes in net position 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/sick leave.
28
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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.
29
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
The City maintains three individual major governmental funds. Information is presented separately in the
governmental fund balance sheet and in the governmental fund statement of revenues, expenditures, and
changes in fund balances for the general fund, tax increment financing 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.
30
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
GOVERNMENT -WIDE FINANCIAL ANALYSIS
Net position. As noted earlier, net position may serve as a useful indicator of a government's financial
position when observed over time. The analysis that follows focuses on the change in net position for the
governmental and business -type activities.
The largest part of the City's net position (95.9 %) 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 POSITION
Governmental Activities Business -type Activities Total
2013 2012 2013 2012 2013 2012
Cunent and other assets $ 101,483,710 $ 103,424,724 $ 24,942,169 $ 27,940,257 $ 126,425,879 $ 131,364,981
Capital assets 379,827,336 373,651,594 244 ,959,531 227,670,280 624,786,867 601,321,874
Total assets 481,311,046 477,076,318 269 ,901,700 255,610,537 751,212,746 732,686,855
Long -tens liabilities 89,354,696 86,116,692 113,695,550 100,869,706 203,050,246 186 ,986,398
Other liabilities 34,780,389 33,765,745 12,336 ,909 10,879,699 47,117,298 44,645,444
Total liabilities 124,135,085 119,882,437 126,032,459 111,749,405 250,167,544 231,631,842
Net Position:
Net investment in capital assets 342,046,442 347,890,769 138,498,777 132,237,734 480,545,219 480,128,503
Restricted 23,491,207 26,180,100 6,011,848 957,802 29,503,055 27,137 ,902
Unrestricted (8,361,688) (16,876 ,988) (641,384) 10,665,596 (9,003,072) (6,211,392)
Total net position $ 357,175 ,961 $ 357,193,881 $ 143,869,241 $ 143,861,132 $ 501,045,202 $ 501,055,013
Net position of the governmental activities decreased from FY12 by $17,920. Grants and contributions
decreased $14,787,547 from FY12 as several large projects were completed in the prior year, including
Bee Branch bridges and projects in the Millwork District. Charges for services also decreased $566,813.
The largest decrease is in special assessments revenue. Property taxes increased $1,851,940 or 6% of
FY12. Local option sales tax and hotel motel taxes combined increased 3% or $354,718.
Net position for the business -type activities increased $8,109 over FY12. Grants and contributions
decreased $3,397,701 as large projects were completed in prior year. Charges for services increased 7.5%
or $1,816,383 over FY12 due to rate increases of 15% on both water and sanitary sewer utilities and a 9%
increase in refuse fees.
31
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
A portion of the City's net position (6.7 %) represents resources that are subject to external restrictions on
how they may be used.
At the close of fiscal year 2013 the City has negative total unrestricted net position. The government -
wide negative unrestricted results from the TIF (governmental activities) debt being used to finance
capital assets of the business -type activities. Business -type activities negative unrestricted, results from
storm water capital projects completed in fiscal year 2012 of which $1,395,000 were covered under the
State Revolving Loan fund proceeds received in fiscal year 2014 and sewer fund utilizing debt to cover
the extraordinary expenses related to the mercury spill cleanup. Fiscal year 2013, the City is able to
report positive balances in total net position, for both the government as a whole and business -type
activity.
Governmental activities. Taxes are the largest source of governmental revenues with property taxes of
$32,668,554 in 2013. Other governmental revenues included gaming of $8,452,298, local option sales
taxes of $8,764,787 and $12,272,039 of charges for services. Governmental operating expenses during
2013 totaled $91,951,008. The largest programs were public safety of $28,292,481, public works of
$21,607,536, community and economic development of $17,388,720 and culture and recreation of
$13,647,178
Business -type activities. Business -type activities increased net position by $8,109 in fiscal year
2013 compared to the fiscal year 2012 increase of $5,337,061. The increase in fiscal year 2012
was primarily due to new Central Street parking ramp and new equipment purchases in both
transit and water utility.
32
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
CITY OF DUBUQUE
CONDENSED STATEMENT OF REVENUES, EXPENSES AND CHANGES IN NET POSITION
Govemmental Activities Business -type Activities Total
2013 2012 2013 2012 2013 2012
Revenues:
Program revenues
Charges for services $ 12,722,039 $ 13,288,852 $ 25,972,597 $ 24,156,214 $ 38,694,636 $ 37,445,066
Operating grants and contributions 13,995,316 23,013,997 2,264,695 1,579,493 16,260,011 24,593,490
Capital grants and contributions 10,791 ,945 16,560,811 1,240,583 5,323,486 12,032,528 21,884,297
General revenues
Property taxes 32,668,554 30,816,614 - - 32,668,554 30,816,614
Local option sales tax 8,764,787 8,459,888 - - 8,764,787 8,459,888
Hotel /motel tax 1 ,953,763 1 ,903 ,944 - - 1 ,953,763 1 ,903 ,944
Utility franchise fees 2,568,347 2,272,481 - - 2,568,347 2,272,481
Gaming 8,452,298 8,785,453 - - 8,452,298 8,785,453
Unrestricted investment eamings 201,153 1 ,529,149 65,351 206,672 266,504 1,735,821
Gain on sale of capital assets 907,122 1,417,048 384,697 84,178 1,291,819 1,501,226
Total revenues 93,025,324 108,048,237 29 ,927,923 31,350,043 122 ,953,247 139,398,280
Expenses:
Public safety 28,292,481 26,326,367 - - 28,292,481 26,326,367
Public works 21,607,536 22 ,917,747 - - 21,607,536 22 ,917,747
Health and social services 716,970 913 ,954 - - 716 ,970 913 ,954
Culture and recreation 13,647,178 12,749 ,558 - - 13,647,178 12,749,558
Community and economic
development 17,388,720 22,030 ,950 - - 17,388,720 22,030 ,950
General government 6,248,483 6,133 ,983 - - 6,248,483 6,133 ,983
Interest on long -temp debt 4,049,640 3,294 ,912 - - 4,049,640 3,294 ,912
Sewage disposal works - - 9,375,748 9,718,669 9,375,748 9,718,669
Water utility - - 6,817,772 7,410,710 6,817,772 7,410,710
Stonnwater utility - - 3,347,304 2,750,767 3,347,304 2,750,767
Parking facilities - - 3,586,405 3,152,055 3,586,405 3,152,055
America's River Project - - 22,770 22,787 22,770 22,787
Refuse collection - - 3,468,859 3,173,075 3,468,859 3,173,075
Transit system - - 3,492,095 3,629,750 3,492,095 3,629,750
Salt - - 346,066 661,395 346,066 661,395
Total expenses 91 ,951,088 94,367,471 30,457,019 30,519,208 122,408,027 124,886,679
Increase (decrease) in net position
before extraordinary item and transfers 1,074,316 13,680,766 (529,096) 830,835 545,220 14,511,601
Extraordinary item - - (555,031) (243,722) (555,031) (243,722)
Transfers (1,092,236) (4,749 ,948) 1,092,236 4,749 ,948 - -
Increase (decrease) in net position (17,920) 8 ,930,818 8,109 5,337,061 (9,811) 14,267,879
Net position, beginning 357,193,881 348,263,063 143,861,132 138,524,071 501,055,013 486,787,134
Net position, ending $ 357,175 ,961 $ 357,193,881 $ 143,869,241 $ 143,861,132 $ 501,045,202 $ 501,055,013
33
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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 $69,544,627 at June 30, 2013.
$15,669,386 is in non - spendable for inventory, advances to other funds, receivables, and prepaid items.
$69,412 is non - spendable endowment corpus. $30,738,046 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 $10,872,172 for capital
improvements. $3,434,440 is assigned for capital improvements and equipment. This leaves
$8,806,171 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 of the General Fund decreased
by $1,647,289 to $18,886,889 due to public safety expenses increases related to MFPRSI and health
insurance expenses and Community and Economic Development expenses for the design work at the
Dubuque Industrial Center West (DICW).
The fund balance of special revenue fund Tax Increment Financing increased by $66,682 to $4,466,316
due to an in increase in property tax revenue and a decrease in expenditures.
The fund balance of the capital projects fund General Construction increased by $913,305 to $18,225,839.
Due to fewer capital projects expenses in fiscal year 2013 than anticipated.
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 position of the enterprise funds at June 30, 2013, totaled $143,869,241 of which
($641,384) is unrestricted. The net position of the internal service funds decreased by $1,009,623 to
($210,820) due to health insurance claims being larger than anticipated. The unrestricted net position of
the internal service funds are ($272,258).
34
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
The Sewer Fund had a decrease of $865,573 for total net position of $37,682,628 at June 30, 2013
primarily due to increase in liabilities for the construction of the Water Resource Recovery Center
(WRRC). The fund also experienced an extraordinary loss of $555,031 due to final mercury cleanup
activities at the WRRC.
The Water Utility had an increase in net position of $487,662 for total net position of $24,742,054,
primarily due to new equipment.
The Storm Water Utility had an increase in net position of $748,315 primarily due to an increase in
improvements other than buildings. Ending net position is $31,038,354.
The Parking Facilities had a decrease in net position of $300,847, primarily due to an increase in
operating expenses. Ending net position is $38,136,599.
Other Enterprise Funds net position decreased by $61,448 for an ending balance of $12,269,606. This
was primarily due to an increase in operating expense for Refuse. America's River Project was also
moved from a major fund to a nonmajor fund.
BUDGETARY HIGHLIGHTS
There were two amendments to the City's 2012 -2013 cash basis budget. The first amendment was passed
in September 2012 to reflect operating and capital budget carryovers (continuing appropriation authority)
from 2012 and amended the FY 2013 budget for operating and capital City Council actions since the
beginning of the fiscal year. The second budget amendment was passed in May 2013 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 $48,407,573. 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 $104,718,891 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 $75,551,146 less than the final amended budget, and cash basis
expenditures were $168,581,055 less than the final amended budget due primarily to projected capital
projects not completed by fiscal year end.
35
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
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, 2013, amounts to $624,786,867 (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.
Land
Buildings
Improvements other than buildings
Machinery and equipment
Infastrncture
Constrnction in progress
Accumulated depreciation
CAPITAL ASSETS (net of accumulated depreciation)
Governmental Activities Business -type Activities Total
2013 2012 2013 2012
17,728,352 $ 17,226,067 $ 82,924,670 $ 81,945,755
133,810,040 94,924,124 259 ,983,418 220,892 ,986
91,529, 793 72,619,054 113,630,172 89,304 ,911
90,018,972 68,654 ,938 128,198T46 105,796;356
- - 213,219,583 210,567,846
2,250,248 63,139,045 36,048 ,982 92,517,639
(90$77,874) (88,892,948) (209,218,204) (199,703,619)
244 ,959,531 $ 227,670,280 $ 624,786,867 $ 601,321,874
2013 2012
$ 65,196,318 $ 64, 719,688 $
126,173;378 125 ,968,862
22,100;379 16,685,857
38,179,274 37,141,418
213,219,583 210,567,846
33, 798,734 29;378,594
(118,840,330) (110,810,671)
$ 379,827;336 $ 373,651,594 $
Major expenditures during 2012 -2013 were for the construction work on the Water and Resource
Recovery Center plant, Bee Branch storm water projects, Millwork District projects, and Southwest
Arterial.
Long -term debt At year end the City had $202,218,341 of debt outstanding. This is an increase of
$16,450,694 from June 30, 2012. New debt issued during the current year included general obligation
bonds of $15,295,000. Series 2012E proceeds will be used to pay for the cost of Library repairs and
improvements, costs associated with grading and road constructions, development of new parks,
rehabilitation and improvement of existing City parks and public safety software replacement. Series
2012H will be used to pay the urban renewal projects for the Greater Downtown Urban Renewal District
and the Technology Park South District including those costs associated with construction of a rail
platform for the intermodal transportation center, Multicultural Family Center repairs and improvements
including renovation of the second floor, construction of an Americans with Disability Act (ADA)
compliant restroom at 5th and Bluff Streets, utilities extension and construction of a trail in Technology
Park South. Proceeds of series 2012F will be used for projects in the Greater Downtown Urban Renewal
District including funding development incentives in the Washington Neighborhood Subarea, assistance
to property owners in the Greater Downtown Urban Renewal District to make structural changes that
make the property more accessible and streetscape improvements for historic districts, and acquisition and
installation of equipment, and repairs and improvements for the Mystique Community Ice Center. Series
2012G provided funding to pay costs of refunding and refinancing of General Obligation Bonds Series
2002C. Series 2012I proceeds provided funds to pay costs of refunding and refinancing of certain City
indebtedness including General Obligation Bonds 2005 series C, 2006 series B and C, and 2007 series B.
Existing debt was refinanced at more favorable rates and to remove bond restrictions on parking debt.
36
CITY OF DUBUQUE, IOWA
MANAGEMENT'S DISCUSSION AND ANALYSIS
FOR THE YEAR ENDED JUNE 30, 2013
The City also received disbursements from the State Revolving Fund construction loan program of
$14,036,422 to fund the sanitary sewer projects. The City made a lease buyout of $1 million for Bowling
and Beyond riverfront properties. The City will pay $50,000 annually over twenty years, beginning in
fiscal year 2013.
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 $181,667,654. With $143,302,946 of debt applicable against
the capacity, we are utilizing 78.9% 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 3.7 %, a 1.5% decrease from the prior year, and
lower than both the State of Iowa's 4.6% rate and 7.3% national rate.
The assessed valuation of taxable property, net of exemptions, increased by 4.2% to $2,337,129,000. In
fiscal year 2013, the minimum monthly refuse rate increased $.97 to $11.69, sewer rates increased 15 %,
water rates increased 15 %, and the storm water monthly fee increased 6.7% to $5.60 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.
37
38
Basic Financial Statements
June 30, 2013
City of Dubuque, Iowa
39
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
JUNE 30, 2013
Primary Government Component Units
Dubuque
Metropolitan Dubuque
Governmental Business -type Area Solid Initiatives and
Activities Activities Total Waste Agency Subsidiaries
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ 47,174,760 $ 9,861,393 $ 57,036,153 $ 2,331,582 $ 2,051,076
Receivables
Property tax
Delinquent 202,248 - 202,248 - -
Succeeding year 23,952,456 - 23,952,456 - -
Accounts and other 1,536,804 2,767,993 4,304,797 276,587 179,588
Special assessments 1,087,855 - 1,087,855 - -
Accrued interest 129,661 21,294 150,955 2,812 34,584
Notes 520,391 - 520,391 - 36,322
Intergovernmental 6,272,773 1,205,297 7,478,070 2,517 -
Intemal balances 1,527,837 (1,527,837) - - -
Inventories 1,019,852 690,683 1,710,535 - 530,251
Prepaid items 300,821 148,041 448,862 1,086 126,139
Restricted cash - - - - 262,007
Total Current Assets 83,725,458 13,166,864 96,892,322 2,614,584 3,219,967
NONCURRENT ASSETS
Temporarily restricted cash and investments 2,581,220 11,775,305 14,356,525 4,582,216 983,898
Permanently restricted cash and investments 69,412 - 69,412 - -
Notes receivable 15,107,620 - 15,107,620 - 11,021,144
Capital assets
Land 65,196,318 17,728,352 82,924,670 2,776,217 131,983
Buildings 126,173,378 133,810,040 259,983,418 65,922 44,509,904
Improvements other than buildings 22,100,379 91,529,793 113,630,172 9,940,887 32,816
Machinery and equipment 38,179,274 90,018,972 128,198,246 3,563,483 -
Infrastructure 213,2 19,583 - 213,219,583 - -
Construction in progress 33,798,734 2,250,248 36,048,982 - -
Accumulated depreciation (118,840,330) (90,377,874) (209,218,204) (8,127,349) (3,602,251)
Total Noncurrent Assets 397,585,588 256,734,836 654,320,424 12,801,376 53,077,494
Total Assets 481,3 1 1,046 269,901,700 751,212,746 15,415,960 56,297,461
40
EXHIBIT 1
LIABILITIES
CURRENT LIABILITIES
Accounts payable
Accmed payroll
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Tax increment financing bonds payable
Accmed compensated absences
Accmed interest payable
Intergovernmental payable
Unearned revenue
Succeeding year property tax
Other
Total Current Liabilities
NONCURRENT LIABILITIES
Loans payable
Notes payable
General obligation bonds payable
Revenue bonds payable
Landfill closure and post closure care
Tax increment financing bonds payable
Accmed Compensated Absences
Net OPEB Liability
Total Noncurrent Liabilities
Total Liabilities
NET POSITION
Net investment in capital assets
Restricted for/by:
Bond ordinance development agreement
Debt service
Employee benefits
Community development
Iowa Finance Authority Trust
Capital projects
Franchise agreement
Endowments, expendable
Endowments, nonexpendable
Other
State statute
Minority interest
Unrestricted
Total Net Position
See notes to financial statements.
Primary Government Component Units
Governmental Business -type
Activities Activities
Dubuque
Metropolitan
Area Solid
Total Waste Agency
Dubuque
Initiatives and
Subsidiaries
$ 5,337,605
251,418
97,143
205,867
3,939,938
372,973
291,711
320,664
6,912
$ 7,093,311
113,202
23,041
2,343,660
2,185,062
270,000
42,428
266,205
$ 12,430,916
364,620
120,184
2,549,527
6,125,000
270,000
372,973
334,139
586,869
6,912
23,952,456 - 23,952,456
3,702 3,702
34,780,389 12,336,909 47,117,298
$ 195,915 $ 374,048
13,439
2,215
57,453
647,242
52,990
269,022 1,074,280
5,541,428 286,263 5,827,691
1,030,036 73,071,771 74,101,807
52,577,227 32,736,069 85,313,296
- 5,990,299 5,990,299
21,547,564 21,547,564
5,932,117 1,033,208 6,965,325
2,726,324 577,940 3,304,264
89,354,696 113,695,550 203,050,246
28,590,180
3,834,636
335,034 -
59,719 -
4,229,389 28,590,180
124,135,085 126,032,459 250,167,544 4,498,411 29,664,460
342,046,442 138,498,777 480,545,219 8,219,160 11,835,030
2,140,740 6,011,848 8,152,588
125,576 - 125,576
31,984 31,984
10,974,937 10,974,937
70,403 - 70,403
8,497,363 - 8,497,363
270,146 - 270,146
73,775 - 73,775
69,412 - 69,412
1,236,871 - 1,236,871
(641,384) (9,003,072)
(8,361,688)
$ 357,175,961
330,306
537,555
1,830,528 14,797,971
$ 143,869,241 $ 501,045,202 $ 10,917,549 $ 26,633,001
41
CITY OF DUBUQUE, IOWA
STATEMENT OF ACTIVITIES
FOR THE YEAR ENDED JUNE 30, 2013
EXHIBIT 2
Functions/Programs
Primary government
Govemmental Activities:
Public safety
Public works
Health and social services
Culture and recreation
Community and economic
development
General government
Interest on long -tens debt
Total govemmental activities
Business -type activities
Sewage disposal works
Water utility
Stonnwater utility
Parking facilities
Americans River Project
Refuse collection
Transit system
Salt
Total business -type activities
Total primary govemment
Component units
DMASWA
Dubuque Initiatives and
Subsidiaries
Total Component Units
See notes to financial statements
Expenses
Program Revenues
Net (Expense) Revenue and Changes in Net
Position
Charges for
Services
Primary government
Operating Capital Grants
Grants and and Total Program Govemmental Business -type
Contributions Contributions Revenues Activities Activities
Component Units
Dubuque
Metropolitan Dubuque
Area Solid Initiatives and
Total Waste Agency Subsidiaries
$ 28,292,481 $ 2,495,737 $ 902,988 $ 40,733 $ 3,439,458 $(24,853,023) $
21,607,536 4,472,479 8,222,530 6,025,642 18,720,651 (2,886,885)
716,970 122,156 32,064 154,220 (562,750)
13,647,178 2,488,844 442,164 435,645 3,366,653 (10,280,525)
14,388,720 1,112,713 4,369,814 4,119,554 9,602,081 (7,786,639)
6,248,483 2,030,110 25,756 144,948 2,200,814 (4,047,669)
4,049,640 25,423 25,423 (4,024,217)
91,951,008 12,722,039 13,995,316 10,791,945 37,509,300 (54,441,708)
$(24,853,023) $
(2,886,885)
(562,750)
(10,280,525)
(7,786,639)
(4,047,669)
(4,024,217)
(54,441,708)
9,375,748
6,817,772
3,347,304
3,586,405
22,770
3,468,859
3,492,095
346,066
30,457,019
$ 122,408,027
8,924,785 7,946 332,861 9,265,592
6,922,582 4,625 424,976 7,352,183
3,192,256 22,000 348,405 3,562,661
2,883,865 71,399 132,671 3,087,935
3,346,795 - 1,670 3,348,465
307,314 2,158,725 2,466,039
395,000 - 395,000
25,972,597 2,264,695 1,240,583 29,477,875
$ 38,694,636 $ 16,260,011 $ 12,032,528 $ 66,987,175
(110,156) (110,156)
534,411 534,411
215,357 215,357
(498,470) (498,470)
(22,770) (22,770)
(120,394) (120,394)
(1,026,056) (1,026,056)
48,934 48,934
(979,144) (979,144)
(54,441,708) (979,144) (55,420,852)
3,922,334
3,542,816
4,396,888 3,665,272
79,088 3,621,904
666,022 4,331,294
$ 8,319,222 $ 7,208,088 $
$ 745,110 $ 7,953,198
General revenues
Property taxes
Local option sales tax
Hotel motel tax
Utility franchise fees
Gaming
Unrestricted investment eamings
Gain on disposal of capital assets
Extraordinary item mercury clean up
Transfers
Total General Revenues and Transfers
Change in Net Position
Net position, beginning ofyear, as restated
Net position, ending ofyear
(300,430)
(65,594)
(300,430)
(65,594)
32,668,554 - 32,668,554 - -
8,764,787 - 8,764,787 - -
1,953,763 - 1,953,763 - -
2,568,347 - 2,568,347 - -
8,452,298 - 8,452,298 - -
201,153 65,351 266,504 19,564 574,018
907,212 384,697 1,219,819 - -
(555,031) (555,031)
(1,092,236) 1,092,236 -
54,423,788 987,253 55,411,041 19,564 574,018
(17,920) 8,109 (9,811) (280,866) 508,424
357,193,881 143,861,132 501,055,013 11,198,415 26,124,577
$ 357,175,961 $ 143,869,241 $ 501,045,202 $ 10,917,549 $ 26,633,001
42
CITY OF DUBUQUE, IOWA
BALANCE SHEET
GOVERNMENTAL FUNDS
JUNE 30, 2013
EXHIBIT 3
Special Revenue Capital Projects
Tax Other
Increment General Governmental
General Financing Construction Funds Total
ASSETS
Cash and pooled cash investments $ 9,602,497 $ 2,249,662 $ 18,406,098 $ 15,637,399 $ 45,895,656
Receivables
Property tax
Delinquent 161,151 - - 41,097 202,248
Succeeding year 18,419,001 - - 5,533,455 23,952,456
Accounts and other 1,268,983 - - 168,821 1,437,804
Special assessments - - - 1,087,855 1,087,855
Accrued interest 39,058 38,914 717 48,378 127,067
Notes 6,095,785 37,000 187,156 9,308,070 15,628,011
Intergovernmental 1,535,278 - 66,084 4,671,411 6,272,773
Due from other funds 1,570,621 - 1,570,621
Inventories 281,531 - - 637,198 918,729
Prepaid items 268,962 - - 31,859 300,821
Restricted cash and pooled cash investments - 2,140,740 509,892 2,650,632
Total Assets $ 39,242,867 $ 4,466,316 $ 18,660,055 $ 37,675,435 $ 100,044,673
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 985,548 $ $ 368,132 $ 2,303,748 $ 3,657,428
Accrued payroll 179,785 - - 40,237 220,022
Intergovernmental payable - - 6,912 6,912
Due to other funds - 279 279
Deferred revenue
Succeeding year property tax 18,419,001 - - 5,533,455 23,952,456
Other 771,644 - 66,084 1,825,221 2,662,949
Total Liabilities 20,355,978 - 434,216 9,709,852 30,500,046
FUND BALANCES
Nonspendable
Endowment corpus - - - 69,412 69,412
Inventory 281,531 - - 637,198 918,729
Long -tertn notes receivable 6,095,785 - 187,156 8,166,895 14,449,836
Prepaid items 268,962 - - 31,859 300,821
Restricted
Endowments - - - 73,775 73,775
Library - - - 1,219,622 1,219,622
Debt service - - - 125,576 125,576
Bond ordinance - 2,140,740 - - 2,140,740
Capital improvements - 2,325,576 18,038,683 3,627,109 23,991,368
Franchise agreement - - - 270,146 270,146
Special assessments - - - 15,267 15,267
Claims - - - 1,982 1,982
Iowa Finance Authority Trust - - - 70,403 70,403
Community programs - - - 2,797,183 2,797,183
Employee benefits - - - 31,984 31,984
Committed, capital improvements - - - 10,827,172 10,827,172
Assigned
DRA gaming and distribution 3,434,440 3,434,440
Unassigned 8,806,171 8,806,171
Total Fund Balances 18,886,889 4,466,316 18,225,839 27,965,583 69,544,627
Total Liabilities and Fund Balances $ 39,242,867 $ 4,466,316 $ 18,660,055 $ 37,675,435 $ 100,044,673
See notes to financial statements.
43
CITY OF DUBUQUE, IOWA
RECONCILIATION OF THE GOVERNMENTAL FUNDS BALANCE SHEET
TO THE STATEMENT OF NET POSITION
JUNE 30, 2013
EXHIBIT 3 -1
Total fund balances - governmental funds $ 69,544,627
Amounts reported for the governmental activities in the statement of
net position are different because:
Capital assets used in governmental activities are not financial
resources and therefore are not reported in the funds.
Cost of capital assets
Accumulated depreciation
$ 498,561,145
(118,795,246)
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 33,698
Special assessments 1,072,588
Other 1,552,961
Intemal 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 intemal service funds are included in governmental
activities in the statement of net position.
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
(56,517,165)
(21,920,537)
(1,235,903)
(5,638,571)
(320,664)
(6,223,828)
(2,726,324)
379,765, 899
2,659,247
(210,820)
(94,582,992)
Net position of governmental activities $ 357,175,961
See notes to financial statements.
44
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
EXHIBIT 4
General
Special Revenue Capital Projects
Tax Other
Increment General Governmental
Financing Construction Funds
Total
REVENUES
Taxes $ 26,608,392 $ 9,831,858 $ - $ 9,000,723 $ 45,440,973
Special assessments - - 175,486 175,486
Licenses and pertnits 1,271,771 - - 1,271,771
Intergovernmental 2,785,616 26,602 - 23,768,613 26,580,831
Charges for services 8,590,278 - - 361,901 8,952,179
Fines and forfeits 484,128 - - - 484,128
Investment eamings 222,983 (230,254) 48,698 138,589 180,016
Contributions 357,988 12,166 370,154
Gaming 8,452,298 - - - 8,452,298
Miscellaneous 559,309 7 4,337 752,262 1,315,915
Total Revenues 49,332,763 9,628,213 53,035 34,209,740 93,223,751
EXPENDITURES
Current
Public safety 26,497,378 - - 9,336 26,506,714
Public works 7,087,746 - - 6,328,362 13,416,108
Health and social services 556,426 - - 124,040 680,466
Culture and recreation 11,005,077 - - 212,942 11,218,019
Community and economic development 4,246,289 4,400,907 - 10,031,300 18,678,496
General government 4,466,825 - - 568,283 5,035,108
Debt service
Principal 40,000 283,820 - 2,858,420 3,182,240
Interest and fiscal charges 141,588 206,664 - 3,642,863 3,991,115
Capital projects - - 3,760,803 12,875,895 16,636,698
Total Expenditures 54,041,329 4,891,391 3,760,803 36,651,441 99,344,964
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
(4,708,566) 4,736,822
(3,707,768) (2,441,701) (6,121 213)
OTHER FINANCING SOURCES (USES)
Issuance of debt 565,000 1,152,671 3,218,329 1,641,268 6,577,268
Issuance of refunding debt 1,743,427 3,205,721 4,949,148
Payment to refunded bond escrow agent (1,743,427) (3,205,721) - - (4,949,148)
Transfers in 5,479,809 500,000 157,817 9,158,004 15,295,630
Transfers out (3,220,098) (6,322,811) (799,299) (6,638,995) (16,981,203)
Insurance recovery 3,060 - - 46,149 49,209
Sale of capital assets 233,506 2,044,226 161,105 2,438,837
Total Other Financing Sources (Uses) 3,061,277 (4,670,140) 4,621,073 4,367,531 7,379,741
NET CHANGE IN FUND BALANCES (1,647,289) 66,682 913,305 1,925,830 1,258,528
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
See notes to financial statements.
20,534,178 4,399,634 17,312,534 26,039,753 68,286,099
$ 18,886,889 $ 4,466,316 $ 18,225,839 $ 27,965,583 $ 69,544,627
45
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, 2013
EXHIBIT 4 -1
Net change in fund balances - total governmental funds $ 1,258,528
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 $ 15,652,377
Transfers of capital assets from enterprise funds 600,033
Transfers of capital assets to enterprise funds (2,562)
Contributions from developers and federal government 430,850
Depreciation expense (8,995,981)
In the statement of activities, only the gain or loss on the sale of capital assets is reported,
whereas in the governmental funds, the entire proceeds from the sale increase financial
resources. Thus, the change in net position 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 governmental funds. Deferred revenues increased (decreased) by these amounts this year:
Property tax 7,304
Special assessments 525,222
Other (2,139,271)
Debt proceeds provide current financial resources to governmental funds, but
issuing debt increases long -term liabilities in the statement of net position.
Repayment of debt principal is an expenditure in the governmental funds,
but it reduces long -term liabilities in the statement of net position and does not
affect the statement of activities. Also, governmental funds report the effect of
issuance discounts and premiums when debt is first issued, whereas these amounts
are deferred and amortized in the statement of activities.
Issuance of debt $ (11,526,416)
Debt repayments 3,182,240
Payment to refunded bond escrow 4,949,148
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 9,151
Amortization of bond discount/premium (67,676)
Increase in compensated absences (857,784)
Increase in net OPEB liability (494,506)
Total additional expenses
7,684,717
(1,538,954)
(1,606,745)
(3,395,028)
(1,410,815)
Internal service funds are used by management to charge the costs of certain
activities to individual funds. The change in net position of the internal service funds is
reported with governmental activities. (1,009,623)
Change in net position of governmental activities $ (17,920)
See notes to financial statements.
46
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CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2013
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovemmental
Inventories
Prepaid items
Total Current Assets
NONCURRENT ASSETS
Restricted cash and pooled cash investments
Capital assets
Land
Buildings
Improvements to other than buildings
Machinery and equipment
Constmction in progress
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
Business -type Activities- Enterprise Funds
Sewage
Disposal
Works
Water
Utility
Stormwater
Utility
$ 5,624,338 $ 2,423,431 $
1,050,400 821,573
11,405 6,310
114,682 148,166
690,683
141,668
335,454
21,804
6,800,825 4,231,831
357,258
2,971,742
167,855
70,471,058
38,147,147
34,919,059
593,128
(43,481,980)
100,816,267
103,788,009
$ 110,588,834
3,887,502
59,898
8,403,073
761,957
44,915,125
598,601
(21,881,559)
32,857,095
36,744,597
$ 40,976,428
15,835,134
49,979,810
1,016,891
51,889
(10,010,402)
56,873,322
56,873,322
$ 57,230,580
48
EXHIBIT 5
Business -type Activities - Enterprise Funds
Parking
Facilities
Other Enterprise
Funds
Total
Governmental
Activities -
Internal Service
Funds
$ 809,379 $ 1,004,245 $ 9,861,393
141,397 419,169 2,767,993
2,226 1,353 21,294
- 920,645 1,205,297
- - 690,683
6,373 - 148,041
959,375 2,345,412 14,694,701
$ 1,279,104
99,000
2,594
101,123
1,481,821
746,215 4,169,846
1,629,465 36,000
52,872,887 2,063,022
2,396,647 244,232
1,944,827 7,223,070
- 1,006,630
(11,580,660) (3,423,273)
47,263,166 7,149,681
48, 009,381 11,319,5 27
11,775,305
17,728,352
133,810,040
91,529,793
90,018,972
2,250,248
(90,377,874)
244,959,531
256,734,836
$ 48,968,756 $ 13,664,939 $ 271,429,537
106,521
(45,084)
61,437
61,437
$ 1,543,258
(Continued)
49
CITY OF DUBUQUE, IOWA
STATEMENT OF NET POSITION
PROPRIETARY FUNDS
JUNE 30, 2013
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
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 POSITION
Net investment in capital assets
Restricted by bond ordinance /development agreement
Unrestricted
Total Net Position
See notes to financial statements.
Business -type Activities- Enterprise Funds
Sewage
Disposal
Works
Water
Utility
Stormwater
Utility
$ 4,314,506
21,590
308,136
1,916,172
31,450
113,280
6,705,134
$ 982,879
28,620
357,975
270,000
161,500
4,962
37,555
1,843,491
$ 1,070,706
3,873
800,329
265,988
608
69,630
1,501,332
3,712,466
4,551,603
61,188,249
310,251
150,969
4,419,046
5,990,299
3,512,140
306,360
163,038
14,066,168
8,371,382
9,103
33,107
66,201,072
14,390,883
22,479,760
72,906,206
16,234,374
26,192,226
38,453,492
320,859
(1,091,723)
$ 37,682,628
20,804,562
1,229,076
2,708,416
$ 24,742,054
35,100,906
(4,062,552)
$ 31,038,354
50
EXHIBIT 5
(continued)
Business -type Activities - Enterprise Funds
Parking Other Enterprise
Facilities Funds
Total
Governmental
Activities -
Internal Service
Funds
$ 20,661 $ 704,559 $ 7,093,311 $ 1,680,177
9,024 50,095 113,202 31,396
23,041 - 23,041
714,210 4,412 2,185,062
- - 270,000
- - 2,343,660
3,193 2,215 42,428
45,475 265 266,205
- 26,505 1,527,837 42,505
815,604 788,051 13,864,746 1,754,078
286,263 - 286,263
9,604,614 94,638 32,736,069
- - 5,990,299
- - 73,071,771
70,476 337,018 1,033,208
55,200 175,626 577,940
10,016,553 607,282 113,695,550
10,832,157 1,395,333 127,560,296 1,754,078
37,089,186 7,050,631 138,498,777 61,438
292,067 4,169,846 6,011,848 -
755,346 1,049,129 (641,384) (272,258)
$ 38,136,599 $ 12,269,606 $ 143,869,241 $ (210,820)
51
CITY OF DUBUQUE, IOWA
STATEMENT OF REVENUES, EXPENSES, AND
CHANGES IN NET POSITION
PROPRIETARY FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES (EXPENSES)
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain on disposal of assets
Net Nonoperating Revenues (Expenses)
INCOME (LOSS) BEFORE CAPITAL CONTRIBUTIONS,
EXTRAORDINARY ITEMS AND TRANSFERS
CAPITAL CONTRIBUTIONS
EXTRAORDINARY ITEM, MERCURY CLEANUP
TRANSFERS IN
TRANSFERS OUT
CHANGE IN NET POSITION
NET POSITION, BEGINNING
NET POSITION, ENDING
See notes to financial statements.
Business -type Activities- Enterprise Funds
Sewage
Disposal
Works
Water
Utility
Stormwater
Utility
$ 8,743,467
181,318
8,924,785
$ 6,919,955
2,627
6,922,582
$ 3,170,948
21,308
3,192,256
3,333,236
586,077
470,462
1,607,598
115,872
1,367,579
2,421,990
631,368
172,342
2,093,134
71,698
912,924
869,399
4,044
52,431
1,082,281
10,511
449,091
7,480,824
6,303,456
2,467,757
1,443,961
619,126
724,499
31,056
25,979
7,946
(1,894,924)
7,131
2,714
21,384
4,625
(514,316)
19,254
63,039
2,114
22,000
(879,547)
336,358
(1,822 812)
(466,339)
(456,036)
(378,851)
301,805
(555,031)
180,120
(413,616)
(865,573)
38,548,201
$ 37,682,628
152,787
422,262
72,959
(160,346)
487,662
24,254,392
$ 24,742,054
268,463
285,366
275,741
(81,255)
748,315
30,290,039
$ 31,038,354
52
EXHIBIT 6
Business -type Activities- Enterprise Funds
Other
Parking Enteiprise
Facilities Funds
Total
Govemmental
Activities -
Intemal
Service Funds
$ 2,648,854 $ 3,916,251 $ 25,399,475 $ 12,709,189
235,011 132,858 573,122 37,530
2,883,865 4,049,109 25,972,597 12,746,719
925,995 3,866,030 11,416,650 2,897,264
260,795 77,127 1,559,411 26,711
214,770 544,942 1,454,947 40,928
607,404 2,091,621 7,482,038 10,670,092
55,366 63,907 317,354 134,941
1,051,439 682,919 4,463,952 10,738
3,115,769 7,326,546 26,694,352 13,780,674
(231,904) (3,277,437) (721,755) (1,033,955)
132,671 2,126,309 2,355,789
- 15,874 65,351 21,137
71,399 34,086 140,056 -
(470,636) (3,244) (3,762,667) -
- 24,514 387,257 7,329
(266,566) 2,197,539 (814,214) 28,466
(498,470) (1,079,898)
(1,535,969) (1,005,489)
- - 1,009,433
- - (555,031)
197,623 1,393,045 2,119,488
- (374, 595) (1,029,812)
(4,134)
(300,847) (61,448)
8,109 (1,009,623)
38,437,446 12,331,054 143,861,132 798,803
$ 38,136,599 $ 12,269,606 $ 143,869,241 $ (210,820)
53
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2013
Business -type Activities-
Sewage
Disposal Water Stonnwater Parking
Works Utility Utility Facilities
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 9,934,117 $ 6,867,489 $ 3,175,482 $ 2,661,764
Cash payments to suppliers for goods and services (2,961,600) (2,093,843) (1,286,616) (1,135,944)
Cash payments to employees for services (3,259,011) (2,376,098) (862,527) (900,216)
Other operating receipts 181,318 2,627 21,308 235,011
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 3,894,824 2,400,175 1,047,647 860,615
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds 180,120
Transfers to other funds (20,152)
Proceeds from interfund balances
Payment of interfund balances
Intergovernmental grant proceeds -
Payments for extraordinary item (555,031)
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES (395,063)
70,397
(56,465)
13,932
275,741
(35,032)
1,501,332
197,623
1,742,041 197,623
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 7,131 19,254 336,358 -
Acquisitionandconstructionofcapitalassets (14,577,314) (2,104,277) (2,666,088) (449,102)
Proceeds from issuance of debt 14,691,663 1,643,150 134,342 2,335,852
Payment of debt (363,155) (1,617,114) (1,010,655) (2,822,400)
Interest paid (1,908,135) (520,659) (880,518) (474,026)
Contributions 7,946 4,625 22,000 71,399
Intergovernmental grant proceeds 41,235 132,671
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES (2,141,864) (2,575,021) (4,023,326) (1,205,606)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 26,535 22,159 5,583 2,013
NET INCREASE (DECREASE) IN CASH AND CASH
EQUIVALENTS
CASH AND CASH EQUIVALENTS, BEGINNING
CASH AND CASH EQUIVALENTS, ENDING
1,384,432 (138,755)
(1,228,055) (145,355)
7,211,648 6,449,688 1,228,055 1,700,949
$ 8,596,080 $ 6,310,933 $ - $ 1,555,594
54
EXHIBIT 7
Enterprise Funds
Other
Enterprise
Funds
Total
Governmental
Activities -
Internal
Service Funds
$ 3,835,963 $ 26,474,815 $ 12,628,598
(2,129,540) (9,607,543) (10,762,445)
(3,781,564) (11,179,416) (2,897,478)
132,858 573,122 37,530
(1,942,283) 6,260,978 (993,795)
1,393,045 2,116,926 -
(374,595) (429,779) (4,134)
- 1,501,332 36,078
(115,903) (172,368)
1,876,051 1,876,051
(555,031)
2,778,598
4,337,131 31,944
20,944 383,687 7,329
(1,540,890) (21,337,671) (40,717)
18,805,007
(4,385) (5,817,709) -
(3,286) (3,786,624) -
34,086 140,056 -
173,906 -
(1,493,531) (11,439,348) (33,388)
17,086 73,376 20,047
(640,130)
(767,863) (975,192)
5,814,221 22,404,561 2,254,296
$ 5,174,091 $ 21,636,698 $ 1,279,104
(Continued)
55
CITY OF DUBUQUE, IOWA
STATEMENT OF CASH FLOWS
PROPRIETARY FUNDS
YEAR ENDED JUNE 30, 2013
Business -type Activities -
Sewage
Disposal Water Stonnwater Parking
Works Utility Utility Facilities
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss) $ 1,443,961 $ 619,126 $ 724,499 $ (231,904)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 1,367,579 912,924 449,091 1,051,439
Change in assets and liabilities
(Increase) decrease in receivables 1,190,650 (52,466) 4,534 12,910
Decrease in inventories and prepaid items 131,375 - (6,373)
Increase (decrease) in accounts payable (181,591) 743,324 (137,349) 8,764
Increase in accrued liabilities 49,667 16,869 174 15,733
Increase in net OPEB liability 24,558 29,023 6,698 10,046
Total Adjustments 2,450,863 1,781,049 323,148 1,092,519
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
NONCASH CAPITAL AND RELATED FINANCING
ACTIVITIES
$ 3,894,824 $ 2,400,175 $ 1,047,647 $ 860,615
Contribution of capital assets from outside sources $ 301,805 $ 419,700 $ 285,366 $
Contributions of capital assets to Governmental Activities $ 393,464 $ 160,346 $ 46,223 $
Contributions of capital assets from Governmental Activities $ - $ 2,562 $ - $
See notes to financial statements.
56
EXHIBIT 7
(Continued)
Enterprise Funds
Other
Enterprise
Funds
$ (3,277,437) $
Total
Governmental
Activities -
Intemal
Service Funds
721,755 $ (1,033,955)
682,919 4,463,952
10,738
(80,288) 1,075,340 (80,592)
125,002 (23,154)
648,057 1,081,205 133,382
55,443 137,886 (214)
29,023 99,348 -
1,335,154 6,982,733 40,160
$ (1,942,283) $ 6,260,978 $ (993,795)
$ $ 1,006,871 $
$ $ 600,033 $
$ $ 2,562 $
57
CITY OF DUBUQUE, IOWA
STATEMENT OF FIDUCIARY ASSETS AND LIABILITIES
AGENCY FUNDS
JUNE 30, 2013
EXHIBIT 8
Agency
Funds
ASSETS
Cash and pooled cash investments $ 840,395
Accounts receivable 52,053
Accrued interest 950
Total Assets $ 893,398
LIABILITIES
Accounts Payable
Due to other agency
Total Liabilities
See notes to financial statements.
178
$ 893,220
$ 893,398
58
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
The notes to financial statements contain a summary of significant accounting policies and other notes
considered necessary for an understanding of the fmancial 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 Post Closure Care
14. Leases Where City is Lessor
15. Subsequent Events
16. Prospective Accounting Pronouncements
17. Prior Period Adjustment - Dubuque Initiatives
59
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 fmancial 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, 2013, $621,504 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(e)(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
60
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 position 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 fmancial 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.
61
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 Tax Increment Financing Fund is used to account for the receipt of property taxes, for the
payment of projects within the tax increment fmancing district, and for the payment of remaining
principal and interest costs on the tax increment financing districts' long -term debt service.
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
sery ices.
The Parking Facilities Fund is used to account for the operations of the City -owned parking
ramps and other parking facilities.
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.
62
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
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."
63
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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, 2013, 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 statement of net position 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.
64
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 agreement, the City's cable television franchise agreement, or 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 position and in the proprietary funds
statement of net position. 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 one 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.
65
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 position. 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 refunding's.
In the fund fmancial 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.
Net Position/Fund Balance
The Dubuque Metropolitan Area Solid Waste Agency's restricted net position represents 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 position restricted for minority
interest is calculated at 22.7% of unrestricted net position, 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 position is displayed in three
components as follows:
• Net investment in capital assets - 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 investment in capital assets
excludes unspent debt proceeds. Unspent debt proceeds were $19,874,843 for the governmental
activities and $7,494,908 for business -type activities.
• Restricted - This consists of net position that is legally restricted by outside parties or by law
through constitutional provisions or enabling legislation. Net position restricted through enabling
legislation as of June 30, 2013 consists of $125,576 for debt service and $31,984 for employee
benefits. All other restrictions are by outside parties through grants, debt agreements or donors.
• Unrestricted - This consists of net position that does not meet the definition of restricted or net
investment in capital assets.
66
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 1— SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Continued)
In the governmental fund fmancial 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 by resolution 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 $4,363,273 for
fiscal year 2013. 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.
Budgets and Budgetary Accounting
The budgetary comparison and related disclosures are reported as Required Supplementary Information.
Other Significant Accounting Policies
Other significant accounting policies are set forth in the financial statements and the notes thereto.
67
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 2 — DEFICIT FUND EQUITY
The following funds have deficit net position amounts as of June 30, 2013:
Internal Service
General Service $ 26,395
Workers' Compensation Reserve $ 871,673
The General Service deficit will be addressed during next fiscal year's reallocation of expenses. The
Worker's Compensation Reserve deficit is a result of a number of projected settlements at fiscal year -end
that will be paid during next fiscal year with additional funding to cover.
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS
Cash on Hand. Cash on hand represents authorized change funds and petty cash funds used for current
operating purposes. The carrying amount at year -end was $14,221 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 $42,171,018, and the bank balance was
$44,658,501 The City's deposits in banks at June 30, 2013, 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
$6,912,998, and the bank balance was $7,051,727. The Agency's deposits in banks at June 30, 2013, were
entirely covered by federal depository insurance or by the State Sinking Fund in accordance with Chapter
12C of the Code of Iowa.
68
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 3 — CASH ON HAND, DEPOSITS, AND INVESTMENTS (continued)
Investments. As of June 30, 2013, the City had the following investments and maturities. (The City
assumes callable bonds will not be called):
Investment Maturities (In Years)
More than
Investment Type Less Than 1 1 to 5 6 to 10 10 Total
Money Market Funds -
U.S. Treasury $ 1,099,522 $ 1,222,483 $ 244,199 $ - $ 2,566,204
U.S. Treasury Securities 387,520 8,962,655 - 2,503,157 11,853,332
Federal Agency Obligations 1,762,940 7,416,581 2,426,174 4,001,521 15,607,216
Corporate Stock 90,494 - - - 90,494
$ 3,340,476 $ 17,601,719 $ 2,670,373 $ 6,504,678 $ 30,117,246
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.
69
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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, 2013.
A reconciliation of cash and investments as shown on the government -wide statement of net
position for the primary government and statement of fiduciary assets and liabilities follows:
Cash on hand $ 14,221
Carrying amount of deposits 42,171,018
Carrying amount of investments 30,117,246
Total $ 72,302,485
Government -wide
Cash and pooled cash investments $ 57,036,153
Cash and pooled cash investments - temporarily restricted 14,356,525
Cash and pooled cash investments - permanently restricted 69,412
Fiduciary
Cash and pooled cash investments 840,395
Total $ 72,302,485
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the Dubuque Metropolitan Solid Waste Agency follows:
Cash on hand $ 800
Carrying amount of deposits 6,912,998
Total $ 6,913,798
Cash and pooled cash investments $ 2,331,582
Cash and pooled cash investments - temporarily restricted 4,582,216
Total $ 6,913,798
A reconciliation of cash and investments as shown on the government -wide statement of net position for
the Dubuque Initiatives and Subsidiaries (December 31, 2012) follows:
Deposits $ 940,798
Repurchase agreement 1,372,285
Beneficial interest in assets held by others 983,898
Total $ 3,296,981
Cash and pooled cash investments $ 2,051,076
Cash and pooled cash investments- restricted 262,007
Cash and pooled cash investments - temporarily restricted 983,898
Total $ 3,296,981
70
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 4 — NOTES RECEIVABLE
At December 30, 2012, Dubuque Initiatives and Subsidiaries had the following notes receivable:
Lower Main Development, 4.00 %, unsecured, matures August 2018 $ 86,906
City of Dubuque, 5.00 %, unsecured, matures July 2023 309,303
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 11,057,466
Less: current maturities (36,322)
Noncurrent portion 11 021,144
NOTE 5 — INTERFUND BALANCES AND TRANSFERS
Interfund balances at June 30, 2013, include amounts due to /from other funds and advances due to /from
other funds. Interfund balances are as follows:
Due From
Other Funds
Due To
Other Funds
Governmental activities:
General Fund $ 1,570,621 $
Nonmajor 279
Internal Service 42,505
Business -type activities:
Stormwater Utility 1,501,332
Nonmajor 26,505
$ 1,570,621 $ 1,570,621
These balances result from a time lag between the date that 1) the internal service funds goods and
services are provided or reimbursement occurs, 2) transactions are recorded in the accounting system
and 3) payments between funds are made.
71
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 5 — INTERFUND BALANCES AND TRANSFERS (continued)
Interfund transfers for the year ended June 30, 2013, consisted of the following:
Transfer to
General $
Taxlncrenent Financing
General construction
Transfers From
Tax Sanitary
Increment General Nonmjor Sewer
General Fine cing Construction Govemmental Utility
622,698 $ 243,000 $ 4,609,977 $ - $
- 500,000 - -
Nonmajor governmental 1,609,163 5,502,490
Sewage disposal works - Water utility - -
Stomwateutility 274,189 -
Parking facilities - 197,623
Nonmajor enterprise 1,336,746 -
$ 3,220,098 $ 6,322,811 $
Transfer of capi
Transfer of capi
Total
56,299
Interval
Parking Nonmajor Service
Ramps Enterprise Fund
157,817 - -
1,671,756 - -
180,120 - -
17,775 20,152 35,032
1,552 - -
374.595
$ 4,134
799,299 $ 6,638,997 $ 20,152 $ 35,032 $ 374,595 $ 4,13
sets to govemmental act v ities
sets to business-type activities
Total
$ 5,479,809
500,000
157,817
9,158,004
180,120
72,959
275,741
197,623
1,393,045
$ 17,415,118
600,033
2,562
$ 18,017,713
In the fund financial statements, total transfers out of $18,017,713 are greater than total transfers in of
$17,415,118 because of the treatment of transfers of capital assets to the governmental activities capital
assets. During the year, capital assets related to Sewer, Water and Stormwater with a book value of
$393,464, $160,346, and $46,233, respectively, were transferred to governmental activities capital assets.
Net capital assets of $2,562 were transferred from governmental activities capital assets to water. No
amounts were reported in the governmental funds, as the amounts did not involve the transfer of fmancial
resources. However, the Sewage Disposal Works, Water, and Stormwater 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.
72
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 6 — CAPITAL ASSETS
Capital asset activity for the year ended June 30, 2013, was as follows:
Primary Government:
Governmental activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
$ 64,719,688 $
29,378,594
1,985,350 $ (1,508,720) $
14,380,739 (9,960,599)
65,196,318
33,798,734
94,098,282
16,366,089
(11,469,319) 98 ,995,052
Capital assets, being
depreciated:
Buildings 125 ,968,862 - - 204,516 - 126,173,378
Improvements other
than buildings 16,685,857 - - 5,414,522 - 22,100,379
Machinery and equipment 37,141,418 14,300 (15,368) 2,033,412 (994,488) 38,179,274
Infrastructure 210,567,846 585,733 - 2,066,004 - 213,219,583
Total capital assets, being
depreciated 390,363 ,983 600,033 (15,368) 9,718,454 (994,488) 399,672,614
Less accumulated
depreciation for:
Buildings (29,906,409) - - (2,190,650) - (32,097,059)
Improvements other
than buildings (7,092,726) - - (557,699) - (7,650,425)
Machinery and equipment (16,952,522) - 12,806 (2,701,301) 964,254 (18,676,763)
Infrastructure (56,859,014) - - (3,557,069) - (60,416,083)
Total accumulated
depreciation (110,810,671) - 12,806 (9,006,719) 964,254 (118,840,330)
Total capital assets, being
depreciated, net
Governmental activities
capital assets, net
279,553,312 600,033
(2,562) 711,735
(30,234) 280,832,284
$ 373,651,594 $ 600,033 $
(2,562) $ 17,077,824 $ (11,499,553) $ 379,827,336
73
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 6 — CAPITAL ASSETS (continued)
Business -type activities:
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
17,226,067 $
63,139,045
- S
(585,733)
502,285 $
21,209,681
- S 17,728,352
(81,512,745) 2,250,248
80,365,112
(585,733) 21,711,966
(81,512,745) 19 ,978,600
Capital assets, being
depreciated:
Buildings 94 ,924,124
Improvements other
than buildings 72,619,054
Machinery and equipment 68,654 ,938
Total capital assets, being
depreciated 236,198,116
38,885 ,916 - 133,810,040
18 ,910,739 - 91,529,793
15,368 (14,300) 24,357,361 (2,994,394) 90,018 ,973
15,368 (14,300) 82,154,016 (2,994,394) 315,358,806
Less accumulated
depreciation for:
Buildings (42,722,425) - - (1,217,237) - (43,939,662)
Improvements other
than buildings (21,773,728) - - (1,292,625) - (23,066,353)
Machinery and equipment (24,396,795) (12,806) - (1,954,090) 2 ,991,832 (23,371,859)
Total accumulated
depreciation (88,892,948) (12,806) - (4,463,952) 2 ,991,832 (90,377,874)
Total capital assets, being
depreciated, net
Business -type activities
capital assets, net
147,305,168 2,562
(14,300) 77,690,064
(2,562) 224 ,980 ,932
$ 227,670,280 $ 2,562 $ (600,033) $ 99,402,030 $ (81,515,307) $ 244 ,959,532
74
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 6 — CAPITAL ASSETS (continued)
Depreciation expense was charged to functions /programs for the primary government as follows:
Governmental activities:
Public safety $ 713,656
Public works 5,276,792
Health and social services 6,685
Culture and recreation 2,088,178
Community and economic development 54,944
General government 855,726
Capital assets held by the government's internal service funds are
charged to various functions based on their usage of their assets 10,738
Total depreciation expense - governmental activities $ 9,006,719
Business -type activities:
Sewage disposal works $ 1,367,579
Water utility 912,924
Stormwater utility 449,091
Parking facilities 1,051,439
Refuse collection 171,141
Salt 4,762
Transit system 507,016
Total depreciation expense - business -type activities $ 4,463,952
75
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 6 — CAPITAL ASSETS (continued)
Component Unit:
Capital assets, not being
depreciated:
Land
Construction in progress
Total Capital assets, not
being depreciated
Beginning Transfers Transfers Ending
Balance In Out Increases Decreases Balance
2,776,217 $
- $ - $ 2,776,217
299,300 - - 3,049,103 (3,348,403) -
3,075,517 - - 3,049,103 (3,348,403) 2,776,217
Capital assets, being
depreciated:
Buildings 65,922 - - - - 65,922
Improvements other
than buildings 6,364 ,906 - - 3,575 ,981 - 9 ,940,887
Machinery and equipment 3 ,909,302 - - 123 ,904 (469,723) 3,563,483
Total capital assets, being
depreciated 10,340,130 - - 3,699,885 (469,723) 13,570,292
Less accumulated
depreciation for:
Buildings
Improvements other
than buildings
Machinery and equipment
Total accumulated
depreciation
Total capital assets, being
depreciated, net
148,663) - - (719) - 149,382)
(5,847,2351
(2,089,920)
(246,712)
1363,823)
469,723
(6,093,947)
(1,984,020)
(7,985,818)
(611,254)
469,723 (8,127,349)
2,354,312 - - 3,088,631 - 5,442 ,943
Dubuque Metropolitan Area
Solid Waste, capital assets $ 5,429,829 $
6,137,734 $ (3,348,403) $
8,219,160
Depreciation expense of $611,254 was charged to the Dubuque Metropolitan Area Solid Waste Agency.
76
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 $88,000,000.
During Fiscal Year 2013, the City issued $7,285,000 to advance refund four outstanding issuances. The City
advance refunded the 2005 series C, 2006 series B and C, and 2007 series B to reduce debt service payments over 9
years by $475,640 and to obtain an economic gain (difference between the present value of the debt service
payments on the old and new debt) of $337,953. During Fiscal Year 2013, the City issued $8,010,000 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, 2013, are as follows:
Purpose
Corporate purpose Series 2003
Corporate purpose Series 2005
Corporate purpose Series 2006A
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 purpose
(taxable) Series 2011B
Corporate purpose Series 2012A
Corporate purpose
and refund Series 2012B
Corporate purpose
(taxable) Series 2012C
Corporate purpose Series 2012D
Corporate purpose Series 2012E
Corporate purpose
(taxable) Series 2012F
Corporate purpose
and refund Series 2012G
Corporate purpose Series 2012H
Corporate purpose (taxable)
and refund Series 2012I
Date of
Issue
10/15/2003
04/18/2005
04/03/2006
12/01/2007
11/04/2008
11/04/2008
11/04/2008
11/10/2009
11/10/2009
11/10/2009
08/30/2010
08/30/2010
08/30/2010
09/01/2011
09/01/2011
03/15/2012
03/15/2012
06/28/2012
06/28/2012
12/12/2012
12/10/2012
11/28/2012
12/10/2012
12/04/2013
Maturity Dates
06/01/04- 06/01/23
06/01/06- 06/01/24
06/01/07- 06/01/25
06/01/09- 06/01/17
Amount Amount
Interest Originally Outstanding
Rates Issued End of Year
3.40 -4.75 % $ 2,110,000 $ 1,230,000
3.40 -5.00 9,015,000 4,500,000
3.80 -4.20 2,900,000 2,105,000
3.45 -3.65 1,055,000 510,000
06/01/09- 06/01/28 3.75 -4.80 3,885,000 3,200,000
06/01/09- 06/01/23 3.75 -4.25 3,290,000 2,420,000
06/01/09- 06/01/18 5.25 -5.50 2,465,000 1,895,000
06/01/11- 06/01/29 1.90 -5.60 2,935,000 2,560,000
06/01/11- 06/01/29 1.50 -5.50 11,175,000 9,805,000
06/01/10- 06/01/21 2.00 -4.00 8,885,000 6,185,000
06/01/11-06/01/30
06/01/12- 06/01/30
06/01/12- 06/01/30
06/01/12- 06/01/31
2.00 -3.00 4,470,000 3,995,000
1.00 -4.15 2,675,000 2,495,000
2.00 -3.00 2,825,000 2,595,000
2.00 -4.00 6,330,000 6,070,000
06/01/13- 06/01/26 2.25 -4.35 1,590,000 1,490,000
06/01/14- 06/01/31 2.00 -3.00 4,380,000 4,380,000
06/01/13- 06/01/31 2.00 -3.13 7,495,000 7,420,000
06/01/14- 06/01/32 2.00 -3.90 6,965,000 6,965,000
06/01/14- 06/01/32 2.00 -3.46 7,175,000 7,175,000
06/01/14- 06/01/32 2.00 -3.00 3,640,000 3,640,000
06/01/14-06/01/22 1.00 -2.20 1,035,000 1,035,000
06/01/14- 06/01/17 1.00 -1.25 950,000 765,000
06/01/15- 06/01/32 2.00 -3.00 2,385,000 2,385,000
06/01/13- 06/01/21 0.30 -2.20 7,285,000 6,285,000
$ 106,915,000 $ 91,105,000
77
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for general obligation bonds are as follows:
Fiscal Year
June 30
2014
2015
2016
2017
2018
2019 -2023
2024 -2028
2029 -2032
Total
Governmental Activities
Interest
$ 1,743,996
1,645,038
1,535,602
1,414,114
1,274,461
4,391,207
2,240,679
475,264
$ 14,720,361
Principal
$ 3,939,938
4,329,469
4,395,968
4,566,928
4,717,280
17,170,155
10,541,352
6,460,932
$ 56,122,022
Business -type Activities
Interest
$ 1,262,022
1,207,286
1,149,870
1,084,171
1,013,154
3,977,825
1,995,354
288,952
$ 11,978,634
Principal
$ 2,185,062
2,240,531
2,294,032
2,363,072
2,082,720
10,369,956
9,643,648
3,803,957
$ 34,982,978
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 fmancing bonds outstanding at
June 30, 2013, are as follows:
Amount Amount
Date of Interest Originally Outstanding Current
Purpose Issue Maturity Dates Rates Issued End of Year Portion
Vessel Systems 12/31/03 12/30/05- 06/30/15 8.0% $ 140,000 $ 37,335 $ 17,973
Diamond Jo Parking Ramp 10/16/07 06/01/11 - 06/01/37 7.5 23,025,000 22,105,000 355,000
$ 23,165,000 $ 22,142,335 $ 372,973
78
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 7 — LONG-TERM DEBT (continued)
Annual debt service requirements to maturity for tax increment financing bonds are as follows:
Fiscal Year Governmental Activities
June 30 Principal Interest
2014 $ 372,973 $ 1,660,510
2015 399,364 1,632,418
2016 410,000 1,602,750
2017 440,000 1,572,000
2018 475,000 1,539,000
2019 -2023 2,965,000 7,106,000
2024 -2028 4,245,000 5,834,375
2029 -2033 6,100,000 3,963,750
2034 -2037 6,734,998 1,308,375
Total $ 22,142,335 $ 26,219,177
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, 2013, are as follows:
Amount Amount
Date of Interest Originally Outstanding
Purpose Issue Maturity Dates Rates Issued End of Year
Water Utility Series 2008D 11/04/08 06/01/10- 06/01/23 3.00 -5.00 % $ $ 1,195,000 $ 910,000
Water Utility Series 2010D 09/21/10 06/01/12- 06/01/30 2.00 -4.00 5,700,000 5,330,000
$ 6,895,000 $ $ 6,240,000
79
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 7 - LONG-TERM DEBT (continued)
Revenue bond debt service requirements to maturity are as follows:
Fiscal Year
June 30
2014
2015
2016
2017
2018
2019 -2023
2024 -2028
2029 -2030
Total
Business -type Activities
Principal Interest
$ 270,000
275,000
285,000
295,000
305,000
1,710,000
2,115,000
985,000
$ 6,240,000
$ 224,945
218,045
210,825
202,260
193,228
796,915
451,800
59,600
$ 2,357,618
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, 2013, are as follows:
Purpose
Adams Company
Lower Main Development
Theisen Supply
40 Main LLC
Date of
Issue
02/13/04
06/30/04
11/22/06
08/06/09
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
Interest
Rates
4.07%
8.00
8.25
6.50
Amount
Originally
Issued
$ 500,000
182,000
810,323
690,529
$ 2,182,852
Annual debt service requirements to maturity for notes payable are as follows:
Fiscal Year
June 30
2014
2015
2016
2017
2018
2019 -2021
Total
Governmental Activities
Principal
$ 205,867
218,427
186,189
173,666
195,881
255,872
$ 1,235,903
Interest
$ 83,547
70,062
55,690
41,743
28,381
30,346
$ 309,768
Amount
Outstanding
End of Year
$ 90,909
69,788
489,495
585,711
$ 1,235,903
Current
Portion
$ 45,455
21,536
81,245
57,632
$ 205,867
80
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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:
Purpose
Upper Bee Branch Sewer
Clean Water
Drinking Water
North Catfish Creek Stormwater
North Catfish Creek Sewer
Water Meter Replacement Stormwater
Water Meter Replacement Sewer
Upper Bee Branch Sewer
Water Pollution Control Plant
Date
Authorized
12/28/06
01/14/09
1 0/18/07
01/13/10
01/13/10
02/12/10
02/12/10
10/27/10
08/18/10
Final
Maturity Date
06 /01 /30
06/01/28
06/01/28
06 /01 /30
06/01/30
06 /01 /30
06/01/30
06/01/41
06/01/39
Interest
Rates
3.25% $
3.25
3.25
3.25
3.25
3.25
3.25
3.25
3.25
Amount
Authorized
1,657,821
1,847,000
1,037,000
998,000
1,141,000
4,338,000
4,338,000
7,850,000
74,285,000
97,491,821
Annual debt service requirements to maturity for capital loan notes are as follows:
Fiscal Year
June 30
2014
2015
2016
2017
2018
2019 -2023
2024 -2028
2029 -2033
2034 -2038
2039 -2041
Total
Business -type Activities
Principal Interest
$ 2,343,660
2,399,100
2,454,417
2,511,632
2,569,765
13,782,401
15,474,848
15,043,385
14,946,406
3,888,557
$ 75,414,171
$ 1,697,136
1,642,721
1,586,941
1,529,809
1,471,271
6,426,534
4,760,954
2,903,826
1,317,589
95,529
$ 23,432,309
Amount
Outstanding Current
End of Year Portion
$ 617,821 $ 25,735
1,480,000 78,000
734,000 39,000
710,000 32,000
810,000 36,000
2,939,000 122,500
2,939,000 122,500
5,828,929 130,253
59,355,421 1,757,672
$ 75,414,171 $ 2,343,660
At June 30, 2013, the City of Dubuque had $17,997,578 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
majroity of the remaining available funds in fiscal year 2014.
81
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 7 - LONG-TERM DEBT (continued)
Loans Payable. Loans payable have been issued to fund several City projects.
Purpose
Parking Lot Purchase
Building Purchase Agreement
Iowa Finance Authority
Bowling & Beyond Inc.
Date of
Issue
07/08/08
02/01/10
08/26/11
07/25/12
Annual debt service requ
Fiscal Year
June 30 Principal
2014 $ 97,143
2015 97,143
2016 97,143
2017 97,142
2018 50,000
2019 -2023 857,237
2024 -2028 1,234,977
2029 -2032 3,107,786
Total $ 5,638,571
Maturity Dates
01/01/09 - 07/01/23
02/01/10 - 02/01/16
06/01/20 - 06/01/30
12/04/12 - 12/04/32
Amount Amount
Interest Originally Outstanding
Rates Issued End of Year
5.0 % $ 400,000 $ 309,304
0.0 330,000 188,571
3.0 4,500,000 4,500,000
0.0 1,000,000 950,000
$ 6,230,000 $ 5,947,875
Current
Portion
$ 23,041
47,143
50,000
$ 120,184
ements to maturity for loans payable
Governmental Activities
Interest
$ 135,000
135,000
135,000
135,000
135,000
648,218
520,343
164,758
$ 2,008,319
Business -type
Principal
$ 23,041
24,208
25,433
26,721
28,074
163,182
18,645
are as follows:
Activities
Interest
$ 15,181
14,014
12,790
11,501
10,148
27,929
466
$ 309,304 $
92,029
82
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 7 — LONG-TERM DEBT (continued)
Changes in Long -term Liabilities. Long-term liability activity for the year ended June 30, 2013, was as
follows:
Governmental activities:
General obligation bonds
Unaccreted premium
Unamortized discounts
Deferred amount on refunding
Total general obligation bonds
Tax increment financing bonds
Unamortized discounts
Total tax increment financing bonds
Notes payable
Loans payable
Compensated absences
Net OPEB liability
Total governmental activities
Business -type activities:
General obligation bonds
Unaccreted premium
Unamortized discounts
Deferred amount on refunding
Total general obligation bonds
Revenue bonds
Unaccreted premium
Unamortized discounts
Total revenue bonds
Capital loan notes
Loans payable
Compensated absences
Net OPEB liability
Balance
Beginning
of Year
$ 52,751,472
597,126
(217,501)
(43,286)
53,087,811
22,488,953
(230,670)
22,258,283
1,767,664
4,735,714
5,366,044
2,231,818
$ 89,447,334
Additions
$ 10,526,416
■
■
■
10,526,416
■
■
■
■
1,000,000
3,360,411
494,506
$ 15,381,333
$ 35,248,528
110,960
(180,128)
(71,357)
35,108,003
6,500,000
30,509
(9,321)
6,521,188
61,957,749
331,235
939,840
478,592
Reductions
$ (7,155,866)
(40,789)
56,307
43,286
(7,097,062)
(346,618)
8,872
(337,746)
(531,761)
(97,143)
(2,502,627)
Balance End Due Within
of Year One Year
$ 56,122,022 $ 3,939,938
556,337 -
(161,194) -
56,517,165 3,939,938
22,142,335 372,973
(221,798) -
21,920,537 372,973
1,235,903 205,867
5,638,571 97,143
6,223,828 291,711
2,726,324 -
$ (10,566,339) $ 94,262,328 $ 4,907,632
$ 4,768,584 $ (5,034,134)
- (5,557)
- 12,879
- 71,357
4,768,584 (4,955,455)
- (260,000)
(1,606)
717
- (260,889)
14,036,422 (580,000)
(21,931)
646,840 (511,044)
99,348
$ 34,982,978 $ 2,185,062
105,403
(167,249) -
34,921,132
6,240,000
28,903
(8,604)
6,260,299
75,414,171
309,304
1,075,636
577,940
2,185,062
270,000
■
■
270,000
2,343,660
23,041
42,428
■
Total business- type activities $ 105,336,607 $ 19,551,194 $ (6,329,319) $ 118,558,482 $ 4,864,191
83
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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, 2012, Dubuque Initiatives and Subsidiaries had the
following notes and loan payable:
Note payable to Dubuque Bank & Trust (Loan A), with the
following interest rate provisions: fixed interest rate of 5.85%
during the "Fixed Interest Rate Period"; during the "Initial
Loan A Variable Interest Rate Period ", an interest rate equal
to the greater of the "Loan A Index Rate" plus 2.75% and
5.00 %; during the "Second Loan A Variable Interest Rate
Period ", an interest rate equal to the `Loan A Index Rate"
plus 2.75 %. Monthly interest only payments are due with
final principal and interest due at maturity on June 15, 2029.* $ 5,294,384
Note payable to Dubuque Bank & Trust (Loan B), with the
following interest rate provisions: fixed interest rate of 5.85%
during the "Fixed Interest Rate Period ", during the "Variable
Interest Period: an interest rate equal to the `Loan A Index
Rate" plus 2.75 %. Monthly interest only payments due until
March 2010, principal and interest payments of $54,167 begin
on April 1, 2010. This note matures on June 15, 2019.*
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 fmal 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.**
Note payable to USBCDE Sub -CDE XXXV, LLC (QLICI
QB2 Loan), fixed interest rate of 1.80 %. Monthly interest only
payments are due with fmal principal and interest due at
maturity on June 1, 2039. **
Less: Current maturities
Noncurrent liability
4,243,038
5,897,192
5,897,192
3,902,808
4,002,808
29,237,422
(647,242)
28590.180
84
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 7 — LONG-TERM DEBT (continued)
The following is a schedule by years of the principal maturities of long -term debt obligations for the years
ending June 30:
2013 $ 647,242
2014 686,692
2015 728,547
2016 772,491
2017 820,038
Thereafter 25 582 812
S 29,237 422
* - 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.
85
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 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 $110,000, and an aggregate stop -loss of
$9,534,066 for 2013. 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 2013. 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 $551,428 in the Health Insurance Reserve
Fund and $1,081,084 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 fmancial statements indicates that it is probable that a
liability has been incurred at the date of the financial statements and the amount of the loss can be
reasonably estimated.
Changes in reported liabilities, all of which are expected to be paid within one year of year end, for the
fiscal years ended June 30, 2013 and 2012, are summarized as follows:
Liabilities at June 30, 2011
Claims and changes in estimates during fiscal year 2012
Claim payments
Liabilities at June 30, 2012
Claims and changes in estimates during fiscal year 2013
Claim payments
Liabilities at June 30, 2013
Health
Insurance
Reserve Fund
$ 262,969
7,747,206
(7,623,275)
386,900
8,675,722
(8,511,194)
$ 551,428
Workers'
Compensation
Reserve Fund
$ 987,017
1,092,653
(942,502)
1,137,168
592,684
(648,768)
$ 1,081,084
86
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 678 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, 2013, were $508,529.
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, 2013, settled claims have not exceeded the risk pool or
reinsurance company coverage since the Pool's inception.
87
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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
Grants
The City has received financial assistance from numerous federal and state agencies in the form of grants
and entitlements. The disbursement of funds received under these programs generally requires
compliance with terms and conditions specified in the grant agreements and is subject to audit by the
grantor agencies. Any disallowed claims resulting from such audits could become a liability of the
applicable fund. However, in the opinion of management, liabilities resulting from disallowed claims, if
any, will not have a material effect on the City's financial position as of June 30, 2013.
Litigation
The City's corporate counsel reported that as of June 30, 2013, 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 fmancial position of the City. The City has authority
to levy additional taxes (outside the regular limit) to cover uninsured judgments against the City.
Construction Contracts
The City has recognized as a liability only that portion of construction contracts representing construction
completed through June 30, 2013. The City has additional commitments for signed construction contracts
of $23,971,202 as of June 30, 2013. These commitments will be funded by federal and state grants, cash
reserves, and bond proceeds.
88
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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. also anticipates receipt of State of Iowa Certified Historic Rehabilitation Tax Credit
('State credits') in excess of $10,000,000 and Federal Certified Historic Rehabilitation Tax Credits in
excess of $11,000,000. The funds will be used to retire debt. The State credits were 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. The Organization received $660,000 and $10,000,000 of State of Iowa
Certified Historic Rehabilitation Tax Credits for the years ended December 31, 2012 and 2011,
respectively.
Commitments
On July 1, 2013, the Dubuque Metropolitan Area Solid Waste Agency (DMASWA) acquired 10.1 acres
of adjoining farmland that will be utilized for future landfill expansion. The cost of the property was
$176,449.
NOTE 10 — EXTRAORDINARY ITEM
In 2013, the Sewer Disposal Works Fund incurred $555,031 of expenses related to mercury spill. Prior
expenses reported for this spill include $243,722 in FY '12 and $2,253,036 in FY '11. The mercury spill
is reported as an extraordinary item since the event was both unusual in nature and infrequent in
occurrence.
89
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 11— OTHER POST EMPLOYMENT 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.
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 537 active and 28 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, 2013,
the amount actually contributed to the plan, and changes in the City's net OPEB obligation:
Annual required contribution $ 574,674
Interest on net OPEB obligation 137,948
Adjustment to annual required contribution (130,750)
Annual OPEB cost 581,872
Contributions made, net of retiree contributions 23,145
Increase in net OPEB obligation 605,017
Net OPEB obligation, beginning of year 2,758,965
Net OPEB obligation, end of year $ 3,363,982
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, 2013.
For the year ended June 30, 2013, the City paid $395,803 for retiree claims. Plan members eligible for
benefits contributed $418,948 or 100% of the premium costs. The net resulted in employee premium
contributions in excess of claims by $23,145.
90
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 11— OTHER POST EMPLOYMENT 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 of June 30, 2013 are summarized as follows:
Percentage of Net
Annual Annual OPEB OPEB
Year Ended OPEB Cost Cost Contributed Obligation
June 30, 2013 $ 581,872 (3.98)% $ 3,363,982
June 30, 2012 584,004 34.45% 2,758,966
June 30, 2011 581,536 25.60% 2,376,162
Funded Status and Funding Progress - As of July 1, 2012, the most recent actuarial valuation date for the
period July 1, 2012 through June 30, 2013, the actuarial accrued liability was $5,720,577, with no actuarial
value of assets, resulting in an unfunded actuarial accrued liability (UAAL) of $5,720,577. The covered
payroll (annual payroll of active employees covered by the plan) was approximately $31,830,608 and the ratio
of the UAAL to covered payroll was 18 %. As of June 30, 2013, 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, 2012 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 8 %. 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 $10,380 per year for retirees. The salary increase rate was
assumed to be 2.5% per year. The UAAL is being amortized as a level percentage of pay on an open basis
over 30 years.
91
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
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 fmancial 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.
For FY '13, plan members are required to contribute 9.40% of earnable compensation and the City is required
to contribute 26.12% of earnable compensation. Contribution requirements are established by state statute.
The City's contributions to the Plan for the years ended June 30, 2013, 2012, and 2011, were $3,309,975,
$3,177,159 and $2,404,474, 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 fmancial 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.
For FY '13, plan members are required to contribute 5.78% of their annual covered salary, and the City is
required to contribute 8.67% of annual covered payroll. Contribution requirements are established by state
statute. The City's contributions to IPERS for the years ended June 30, 2013, 2012, and 2011, were
$2,078,735, $1,964,764 and $1,614,811, respectively, equal to the required contributions for each year.
NOTE 13 — LANDFILL CLOSURE AND POST CLOSURE 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 position date. The
$3,834,636 reported as landfill closure and post closure care liability at June 30, 2013, 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 99% of the estimated capacity of cells 5, 6, 7, and 8, and the use of 16% of cell 9. The Agency will
recognize the remaining estimated cost of closure and post closure care of $1,281,364 as the remaining
capacity is filled.
These amounts are based on what it would cost to perform all closure and post closure care in 2013. 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.
92
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 13 — LANDFILL CLOSURE AND POST CLOSURE CARE
The Agency has begun to accumulate resources to fund these costs in accordance with state and federal
financial assurance requirements. At June 30, 2013, funds have been restricted for closure and post closure
costs in the amount of $4,251,910.
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, 2013 is $6,869,047, with $142,423 of depreciation expense during
the year ended June 30, 2013. The DRA lease amount is based on the association's gross gambling receipts.
During the year ended June 30, 2013, the DRA lease generated $5,942,125 in lease revenue.
NOTE 15— SUBSEQUENT EVENTS
There are no subsequent events to report.
NOTE 16 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS
The Governmental Accounting Standards Board (GASB) has issued six statements not yet implemented by
the City. The statements which might impact the City are as follows:
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 fmancial 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.
93
CITY OF DUBUQUE, IOWA
NOTES TO FINANCIAL STATEMENTS
JUNE 30, 2013
NOTE 16 — PROSPECTIVE ACCOUNTING PRONOUNCEMENTS (continued)
Statement No. 69, Government combinations and Disposals of Government Operations, issued January 2013,
will be effective for the fiscal year ending June 30, 2015. The objective of this statement is to improve
financial reporting by addressing accounting and financial reporting for government combinations and
disposals of government operations. The term government combinations is used in the Statement to refer to a
variety of arrangements including mergers and acquisitions.
Statement No. 70, Accounting and Financial Reporting for Nonexchange Financial Guarantees, issued April
2013, will be effective for the fiscal year ending June 30, 2014. The objective of this Statement is to improve
the recognition, measurement, and disclosure guidance for state and local governments that have extended or
received financial guarantees that are nonexchange transactions.
The City's management has not yet determined the effect these statements will have on the City's financial
statements.
NOTE 17 — PRIOR PERIOD ADJUSTMENT
During 2012, an error was discovered in Dubuque Initiatives, Inc. pertaining to restricted cash and tax credit
proceeds. The restricted cash held in the US Bank Reserve account was also included as an asset of Roshek
Building Investment Fund, LLC. As a result of conversations with US Bank, the cash should remain an asset
of Roshek Building Investment Fund, LLC. Dubuque Initiatives, Inc. will receive the net benefit upon
exercising their PUT option in 2016. This resulted in a restatement of the net position of Dubuque Initiatives,
Inc. The restatement decreased restricted cash and unrestricted net position as previously reported at
December 31, 2011 by $991,608.
94
Required Supplementary Information
June 30, 2013
City of Dubuque, Iowa
95
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, 2013
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
Budgeted Amounts
Original Final
Final to Actual
Variance
$ 21,924,102 $
9,831,859
12,076,380
4,273,831
12,243,445
28,271,752
26,041,541
433,100
9,922,180
125,018,190
22,007,300
10,289,639
14,922,012
1,339,574
12,365,425
50,224,931
34,178,789
74,273
6,759,820
152,161,763
$ 22,007,300 $ (83,198)
10,289,639 (457,780)
14,922,012 (2,845,632)
1,384,456 2,889,375
12,442,198 (198,753)
92,742,406 (64,470,654)
34,211,789 (8,170,248)
1,843,814 (1,410,714)
10,725,722 (803,542)
200,569,336 (75,551,146)
25,292,704 25,339,063 25,935,722 643,018
11,762,952 12,049,060 12,447,988 685,036
967,291 1,030,919 1,175,550 208,259
10,352,765 10,546,195 10,709,118 356,353
11,408, 822 12,781,522 13,136,558 1,727,736
6,974,291 7,317,526 7,586,919 612,628
6,685,697 6,994,075 6,994,075 308,378
28,157,402 44,312,974 106,011,789 77,854,387
48,995,946 94,088,699 135,181,206 86,185,260
150,597,870 214,460,033 319,178,925 168,581,055
EXCESS (DEFICIENCY) OF RECEIPTS
OVER (UNDER) EXPENDITURES (25,579,680)
OTHER FINANCING SOURCES, NET 24,817,813
EXCESS DEFICIENCY OF RECEIPTS AND
OTHER FINANCING SOURCES OVER
(UNDER) EXPENDITURES AND
OTHER FINANCING USES
BALANCE, BEGINNING OF YEAR
BALANCE, ENDING OF YEAR
(62,298,270) (118,609,589)
60,239,239
93,029,909
72,490,241 (47,672,428)
(761,867)
70,211,104
$ 69,449,237
(2,059,031) (46,119,348)
22,279,858 65,389,863
45,357,481
$ 20,220,827 $ 19,270,515 $ 45,357,481
See Notes to Required Supplementary Information.
96
CITY OF DUBUQUE, IOWA
NOTE TO REQUIRED SUPPLEMENTARY INFORMATION — BUDGETARY REPORTING
FOR THE YEAR ENDED JUNE 30, 2013
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, 2013 was amended two times during the year to allow the
City to increase function expenditures by $104,718,892, primarily for the carry- forward of unfinished
capital improvement projects and expenditure of additional grants for capital improvements.
The following is a reconciliation of the budgetary basis to the modified accrual basis of accounting:
Receipts/Revenue
Expenditures/Expenses
Deficiency of Receipts/Revenue
Under Expenditures/Expenses
Other Financing Sources
Net
Balance, Beginning
Balance, Ending
Budgetary Accrual
Basis Adjustments
$ 125,018,190 $ (2,873,389)
150,597,870 (20,795,887)
Governmental
Modified Funds
Accrual /Accrual Modified
Basis Accrual Basis
$ 122,144,801 $ 93,223,751
129,801 ,983 99,344 ,964
Enterprise
Funds
Accrual
Basis
$ 28,921,050
30,457,019
Total
$ 122,144,801
129,801 ,983
(25,579,680) 17 ,922 498
24,817,813 (15,893 ,994)
(761,867) 2,028,504
70,211,104 141 ,936,127
$ 69,449,337 $ 143,694,631
(7,657,182)
8 ,923,819
1,266,637
212,147,231
$ 213,413,868
(6,121,213)
7,379,741
1,258,528
68,286,099
$ 69,544,627
(1,535,969)
1,544,078
8,109
143,861,132
$ 143,869,241
(7,657,182)
8 ,923,819
1,266,637
212,147,231
$ 213,413,868
97
CITY OF DUBUQUE, IOWA
SCHEDULE OF FUNDING PROGRESS FOR THE RETIREE BENEFIT PLAN
FOR THE YEAR ENDED JUNE 30, 2013
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)
2011 07/01/10 - 5,481,802 5,481,802 0.00% 29,790,517 18.40%
2012 07/01/10 - 5,481,802 5,481,802 0.00% 31,183,497 17.60 %
2013 07/01/12 - 5,720,577 5,720,577 0.00% 31,830,608 18.00 %
98
99
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.
Employees Benefits Fund — This fund is used to account for pension and related employee benefit
costs for those employees paid wages from the General Fund.
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.
Community Development Fund — This fund is used to account for the use of Community
Development Block Grant funds as received from federal and statement governmental agencies.
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.
100
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 fmanced through the local option sales tax.
Street Construction Fund — This fund is used to account for the resources and costs related to street
capital improvements.
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.
101
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET
NONMAJOR GOVERNMENTAL FUNDS
JUNE 30, 2013
Special Revenue Funds
Road
Use Section VIII Employee Tort
Tax Housing Benefits Liability
ASSETS
Cash and pooled cash investments $ 542,799 $ 41,766 $ - $
Receivables
Property tax
Delinquent - - 37,901 2,609
Succeeding year - - 5,060,627 353,628
Accounts and other - 20,099 - -
Special assessments - -
Accrued interest - 607
Notes - 106
Intergovernmental 542,264 4,700
Inventories 637,198 -
Prepaid items 12,000 -
Restricted cash and pooled cash investments - 366,812
Total Assets $ 1,734,261 $ 434,090 $ 5,098,528 $ 356,237
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 91,146 $ 38,614 $ - $
Accrued payroll 31,618 2,467 - -
Intergovernmental payable - 6,912 - -
Deferred revenue
Due to other funds - - 279 -
Succeeding year property tax - - 5,060,627 353,628
Other 2,855 12,572 5,638 627
Total Liabilities 125,619
60,565 5,066,544 354,255
FUND BALANCES
Nonspendable:
Endowment corpus -
Inventory 637,198
Long -term notes receivable -
Prepaid items 12,000
Restricted:
Endowments -
Library -
Debt service -
Capital improvements 959,444
Franchise agreement -
Special assessments
Claims
Iowa Finance Authority Trust
Community programs
Employee benefits
Committed, capital improvements
Total Fund Balances
■
373,525
■
31,984
1,982
1,608,642 373,525 31,984 1,982
Total Liabilities and Fund Balances $ 1,734,261 $ 434,090 $ 5,098,528 $ 356,237
102
EXHIBIT A -1
Special Revenue Funds Capital Projects Funds
Library IFA
Special Expendable Housing Community Airport Sales Tax
Assessments Cable TV Gifts Trust Trust Development Debt Service Construction Construction
$ - $ 128,480 $ 1,217,732 $ 70,403 $ 1,956,305 $ 124,930 $ 2,870,824 $ 4,324,776
587 -
- - - - - 119,200 -
- 148,722 - - - - -
1,087,855 - - - - - -
- 258 2,470 - 31,979 254 1,352 5,704
- - - - 8,650,446 - - 657,518
- - - - 238,676 - 1,536,978 266,923
- - - - 19,859 - -
$ 1,087,855 $ 277,460 $ 1,220,202 $ 70,403 $ 10,897,265 $ 244,971 $ 4,409,154 $ 5,254,921
$ - $ 6,692 $ 580 $ - $ 72,883 $ - $ 1,517,701 $ 121,078
622 - - 5,530
- - - - - 119,200 -
1,072,588 - - - 208,440 195 223,788
1,072,588 7,314 580 - 286,853 119,395 1,741,489 121,078
270,146
15,267
8,166,895
19,859
1,219,622
- - - 125,576
70,403
2,423,658
2,667,665
- - - - - - - 5,133,843
15,267 270,146 1,219,622 70,403 10,610,412 125,576 2,667,665 5,133,843
$ 1,087,855 $ 277,460 $ 1,220,202 $ 70,403 $ 10,897,265 $ 244,971 $ 4,409,154 $ 5,254,921
(Continued)
103
CITY OF DUBUQUE, IOWA
COMBINING BALANCE SHEET EXHIBIT A -1
NONMAJOR GOVERNMENTAL FUNDS (Continued)
JUNE 30, 2013
Capital Permanent Funds
Projects Funds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Tmst Funds
ASSETS
Cash and pooled cash investments $ 4,359,384 $ - $ - $ 15,637,399
Receivables
Property tax
Delinquent - - - 41,097
Succeeding year - - - 5,533,455
Accounts and other - - - 168,821
Special assessments - - - 1,087,855
Accmed interest 5,647 82 25 48,378
Notes - - - 9,308,070
Intergovernmental 2,081,870 - - 4,671,411
Inventories - - - 637,198
Prepaid items - - - 31,859
Restricted cash and pooled cash investments - 130,810 12,270 509,892
Total Assets $ 6,446,901 $ 130,892 $ 12,295 $ 37,675,435
LIABILITIES AND FUND BALANCES
LIABILITIES
Accounts payable $ 455,054 $ - $ - $ 2,303,748
Accmed payroll - - - 40,237
Intergovernmental payable - - - 6,912
Deferred revenue
Due to other funds - - - 279
Succeeding year property tax - - - 5,533,455
Other 298,518 - - 1,825,221
Total Liabilities
FUND BALANCES
Nonspendable:
Endowment corpus
Inventory
Long -term notes receivable
Prepaid items
Restricted:
Endowments
Library
Debt service
Capital improvements
Franchise agreement
Special assessments
Claims
Iowa Finance Authority Tmst
Community programs
Employee benefits
Committed, capital improvements
Total Fund Balances
753,572 - - 9,709,852
57,412 12,000
73,480
5,693,329
69,412
637,198
8,166,895
31,859
295 73,775
- 1,219,622
125,576
- 3,627,109
270,146
15,267
1,982
70,403
- 2,797,183
31,984
- 10,827,172
5,693,329
130,892
12,295 27,965,583
Total Liabilities and Fund Balances $ 6,446,901 $ 130,892 $ 12,295 $ 37,675,435
104
0
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES
NONMAJOR GOVERNMENTAL FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
Special Revenue Funds
Road
Use Section VIII Employee Tort
Tax Housing Benefits Liability
REVENUES
Taxes $ - $ - $ 4,255,620 $ 293,037
Special assessments - -
Intergovernmental 5,657,931 3,562,876 - -
Charges for services - - Investment earnings 270 - - -
Contributions - - - -
Miscellaneous 66,656 24,597 -
Total Revenues 5,724,857 3,587,473 4,255,620 293,037
EXPENDITURES
Governmental activities
Current
Public safety - - -
Public works 6,294,368 - -
Health and social services - - -
Culture and recreation - - -
Community and economic development - 4,469,913
General government 29,178 - 280
Debt service
Principal - - -
Interest and fiscal charges - - -
Capital projects -
Total Expenditures 6,323,546 4,469,913 280
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES
OTHER FINANCING SOURCES (USES)
Issuance of debt
Transfers in
Transfers out
Insurance recovery
Sale of capital assets
Total Other Financing Sources (Uses)
NET CHANGE IN FUND BALANCES
FUND BALANCES, BEGINNING
FUND BALANCES, ENDING
(598,689) (882,440) 4,255,340 293,037
722,840
(50,442) (820) (4,256,440) (294,552)
(50,442) 722,020 (4,256,440) (294,552)
(649,131) (160,420) (1,100) (1,515)
2,257,773 533,945 33,084 3,497
$ 1,608,642 $ 373,525 $ 31,984 $ 1,982
106
EXHIBIT A -2
Special Revenue Funds Capital Projects Funds
Library IFA
Special Expendable Housing Community Airport Sales Tax
Assessments Cable TV Gifts Trust Trust Development Debt Service Construction Construction
$ - $
175,486
30,469
13,363
219,318
149,622
488
453,259
603,369
$
- $ - $ - $ 69,673 $ - $ 1,752,958
- - 3,806,323 25,423 5,632,290 1,272,671
- - 7,292 - 190,284 -
2,890 - 74,941 (14,185) 11,873 11,646
- - - - 9,965 2,201
63,257 - 121,929 - 2,156 973
66,147 - 4,010,485 80,911 5,846,568 3,040,449
9,336
31,290
75,219
538,419
579,045
75,219
33,994
92,750
137,104
180,489 5,380,898
406
- - 2,858,420 -
- - 3,642,640 - 223
- - - 6,430,690 2,490,358
180,489 5,645,152 6,501,060 6,430,690 2,490,581
219,318
24,324
(9,072) (180,489) (1,634,667) (6,420,149) (584,122) 549,868
- - - - - - - 361,080
- - - - 69,837 6,377,584 327,889 1,538,419
(449,269) (573) - - - - (57,607) (158,418)
- - - 75,764 - -
(449,269) (573) - - 145,601 6,377,584 270,282 1,741,081
(229,951) 23,751 (9,072) (180,489) (1,489,066) (42,565) (313,840) 2,290,949
245,218 246,395 1,228,694 250,892 12,099,478 168,141 2,981,505 2,842,894
$ 15,267 $ 270,146 $ 1,219,622 $ 70,403 $ 10,610,412 $ 125,576 $ 2,667,665 $ 5,133,843
(Continued)
107
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENDITURES, AND CHANGES IN FUND BALANCES EXHIBIT A -2
NONMAJOR GOVERNMENTAL FUNDS (Continued)
FOR THE YEAR ENDED JUNE 30, 2013
Capital Permanent Funds
Projects Funds
Total
Ella Lyons Library Nonmajor
Street Peony Trail Gifts Governmental
Construction Trust Trust Funds
REVENUES
Taxes $ 2,629,435 $ - $ - $ 9,000,723
Special assessments - - - 175,486
Intergovernmental 3,811,099 - - 23,768,613
Charges for services 14,703 - - 361,901
Investment earnings 12,453 7,712 32 138,589
Contributions - - 12,166
Miscellaneous 6,054 18 752,262
Total Revenues 6,473,744 7,730 32 34,209,740
EXPENDITURES
Governmental activities
Current
Public safety -
Public works -
Health and social services -
Culture and recreation -
Community and economic development -
General government -
Debt service
Principal -
Interest and fiscal charges -
Capital projects 3,954,847
Total Expenditures 3,954,847
619
619
9,336
6,328,362
124,040
212,942
10,031,300
568,283
2,858,420
3,642,863
12,875,895
36,651,441
EXCESS (DEFICIENCY) OF REVENUES
OVER (UNDER) EXPENDITURES 2,518,897 7,111 32 (2,441,701)
OTHER FINANCING SOURCES (USES)
Issuance of debt 1,280,188 - - 1,641,268
Transfers in 121,435 - - 9,158,004
Transfers out (1,370,874) - - (6,638,995)
Insurance recovery 46,149 - - 46,149
Sale of capital assets 85,341 - - 161,105
Total Other Financing Sources (Uses) 162,239 - - 4,367,531
NET CHANGE IN FUND BALANCES 2,681,136 7,111 32 1,925,830
FUND BALANCES, BEGINNING 3,012,193 123,781 12,263 26,039,753
FUND BALANCES, ENDING $ 5,693,329 $ 130,892 $ 12,295 $ 27,965,583
108
NONMAJOR ENTERPRISE FUNDS
Enterprise funds are used to account for operations that are fmanced 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.
America's River Project — This fund is used to account for all projects covered by the Vision Iowa
Grant, including all matching funds.
109
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
NONMAJOR ENTERPRISE FUNDS
JUNE 30, 2013
EXHIBIT B -1
ASSETS
CURRENT ASSETS
Cash and pooled cash investments
Receivables
Accounts
Accrued interest
Intergovernmental
Total Other
Refuse Transit America's Enterprise
Collection System Salt River Project Funds
$ 635,594 $ 337,190 $ - $ 31,461 $ 1,004,245
308,323
1,289
1,670
2,203 108,643
918,975
419,169
64 1,353
920,645
Total Current Assets 946,876 1,258,368 108,643 31,525 2,345,412
NONCURRENT ASSETS
Restricted cash and pooled cash
investments - 4,169,846 - - 4,169,846
Capital assets
Land - 36,000 - - 36,000
Buildings - 1,887,564 175,458 - 2,063,022
Improvements to other than buildings 244,232 - - 244,232
Machinery and equipment 2,159,038 5,027,690 36,342 - 7,223,070
Construction in progress 1,006,630 - - 1,006,630
Accumulated depreciation (634,947) (2,781,343) (6,983) - (3,423,273)
Net Capital Assets 1,524,091 5,420,773 204,817 - 7,149,681
Total Noncurrent Assets 1,524,091 9,590,619 204,817 - 11,319,527
Total Assets 2,470,967 10,848,987 313,460 31,525 13,664,939
LIABILITIES
CURRENT LIABILITIES
Accounts payable 234,490
Accrued payroll 22,015
General obligation bonds payable 4,412
Accrued compensated absences 2,215
Accrued interest payble 265
Due to other funds
Total Current Liabilities
NONCURRENT LIABILITIES
General obligation bonds payable (net of
premium of $460)
Accrued Compensated Absences
Net OPEB Liability
Total Noncurrent Liabilities
343,761 126,056 252 704,559
28,080 - 50,095
4,412
2,215
265
26,505 26,505
263,397 371,841
152,561 252 788,051
94,638
333,177
135,385
3,841
40,241
94,638
337,018
175,626
563,200
44,082
607,282
Total Liabilities 826,597 415,923 152,561 252 1,395,333
NET POSITION
Net investment in capital assets 1,425,041 5,420,773 204,817 - 7,050,631
Restricted by bond
ordinance /development agreement 4,169,846 - 4,169,846
Unrestricted 219,329 842,445 (43,918) 31,273 1,049,129
Total Net Position $ 1,644,370 $ 10,433,064 $ 160,899 $ 31,273 $ 12,269,606
110
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION
NONMAJOR ENTERPRISE FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
EXHIBIT B -2
Refuse
Collection
Transit
System
America's
Salt River Project
Total Other
Enterprise
Funds
OPERATING REVENUES
Charges for sales and sery ices $ 3,346,307 $
Other 488
Total Operating Revenues 3,346,795
OPERATING EXPENSES
Employee expense
Utilities
Repairs and maintenance
Supplies and services
Insurance
Depreciation
Total Operating Expenses
OPERATING INCOME (LOSS)
NONOPERATING REVENUES
Intergovernmental
Investment earnings
Contributions
Interest expense
Gain (loss) on disposal of assets
Net Nonoperating Revenues
INCOME (LOSS) BEFORE TRANSFERS
TRANSFERS IN
TRANSFERS OUT
176,043 $ 393,901 $
131,271 1,099
307,314 395,000
$ 3,916,251
132,858
4,049,109
2,245,343 1,618,715 1,972
17,746 57,062 2,319
302,499 233,933 8,510
706,089 1,034,259 328,503
22,797 41,110 -
171,141 507,016 4,762
3,465,615 3,492,095 346,066
22,770
22,770
3,866,030
77,127
544,942
2,091,621
63,907
682,919
7,326,546
(118,820) (3,184,781) 48,934
(22,770) (3,277,437)
1,670
2,069
(3,244)
2,124,639
13,748
34,086
23,870
495 2,196,343
(118,325) (988,438)
CHANGE IN NET POSITION (118,325)
NET POSITION, BEGINNING 1,762,695
NET POSITION, ENDING $ 1,644,370
1,362,347
(374,595)
(686)
10,433,750
$ 10,433,064
644
644
- 2,126,309
57 15,874
- 34,086
(3,244)
- 24,514
57 2,197,539
49,578
49,578
111,321
$ 160,899
(22,713) (1,079,898)
30,698 1,393,045
- (374,595)
7,985 (61,448)
23,288 12,331,054
$ 31,273 $ 12,269,606
111
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2013
Refuse Transit
Collection System
Salt
America's Total Other
River Enterprise
Proiect Funds
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 3,319,911 $ 174,534 $ 341,518 $ - $ 3,835,963
Cash payments to suppliers for goods and services (822,807) (1,058,149) (225,386) (23,198) (2,129,540)
Cash payments to employees for services (2,171,030) (1,608,562) (1,972) - (3,781,564)
Other operating receipts 488 131,271 1,099 - 132,858
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES 326,562 (2,360,906) 115,259 (23,198) (1,942,283)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers from other funds
Transfers to other funds
Payment of interfund balances
Intergovernmental grant proceeds
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES
1,362,347 -
(374,595)
(115,903)
1,876,051
2,863,803 (115,903)
30,698
1,393,045
(374,595)
(115,903)
1,876,051
30,698 2,778,598
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets 20,300 644 - 20,944
Acquisition and construction of capital assets (926,743) (614,147) - (1,540,890)
Contributions - 34,086 - 34,086
Principal Paid (4,385) - - (4,385)
Interest paid (3,286) - - (3,286)
NET CASH PROVIDED BY (USED FOR) CAPITAL AND
RELATED FINANCING ACTIVITIES (934,414) (559,761) 644 - (1,493,531)
CASH FLOWS FROM INVESTING ACTIVITIES
Interest received 3,343 13,748 - (5) 17,086
NET INCREASE IN CASH AND CASH EQUIVALENTS (604,509) (43,116) - 7,495 (640,130)
CASH AND CASH EQUIVALENTS, BEGINNING 1,240,103 4,550,152 - 23,966 5,814,221
CASH AND CASH EQUIVALENTS, ENDING $ 635,594 $ 4,507,036 $ $ 31,461 $ 5,174,091
(Continued)
112
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
NONMAJOR ENTERPRISE FUNDS
YEAR ENDED JUNE 30, 2013
EXHIBIT B -3
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
America's Total Other
River Enterprise
Proiect Funds
$ (118,820) $ (3,184,781) $ 48,934 $ (22,770) $ (3,277,437)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation 171,141 507,016 4,762 - 682,919
Change in assets and liabilities
Decrease in receivables (26,396) (1,509) (52,383) - (80,288)
(Decrease) in accounts payable 226,324 308,215 113,946 (428) 648,057
(Decrease) in accrued liabilities 51,988 3,455 - 55,443
Increase in net OPEB liability 22,325 6,698 - 29,023
Total Adjustments 445,382 823,875 66,325 (428) 1,335,154
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ 326,562 $ (2,360,906) $ 115,259 $ (23,198) $ (1,942,283)
113
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.
114
1
a
1
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF NET POSITION
INTERNAL SERVICE FUNDS
JUNE 30, 2013
General Garage Stores/
Service Service Printing
ASSETS
CURRENT ASSETS
Cash and pooled cash investments $ - $ - $ -
Receivables
Accounts - - -
Accrued interest -
Inventories - 91,891 9,232
Total Current Assets - 91,891 9,232
NONCURRENT ASSETS
Capital assets
Machinery and equipment
Accumulated depreciation
Net Capital Assets
Total Noncurrent Assets
Total Assets
LIABILITIES
106,521
(45,084)
61,437
61,437
153,328
9,232
CURRENT LIABILITIES
Accounts payable 394 47,271 -
Accrued payroll 17,697 13,699
Due to other funds 8,304 28,071 6,130
Total Current Liabilities 26,395 89,041 6,130
Total Liabilities 26,395 89,041 6,130
NET POSITION
Net investment in capital assets 61,438
Unrestricted (26,395) 2,849 3,102
Total Net Position (Deficit) $ (26,395) $ 64,287 $ 3,102
116
EXHIBIT C -1
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 1,070,117 $ 208,987 $ 1,279,104
99,000 - 99,000
2,170 424 2,594
- - 101,123
1,171,287
209,411 1,481,821
106,521
(45,084)
61,437
61,437
1,171,287 209,411
1,543,258
551,428 1,081,084
1,680,177
31,396
42,505
551,428 1,081,084
1,754,078
551,428
1,081,084 1,754,078
- - 61,438
619,859 (871,673) (272,258)
$ 619,859 $ (871,673) $ (210,820)
117
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF REVENUES, EXPENSES, AND CHANGES IN NET POSITION (DEFICITS)
INTERNAL SERVICE FUNDS
FOR THE YEAR ENDED JUNE 30, 2013
OPERATING REVENUES
Charges for sales and services
Other
Total Operating Revenues
General Garage Stores/
Service Service Printing
$ 2,005,188 $ 2,414,244 $ 18,770
36,385
2,005,188 2,450,629 18,770
OPERATING EXPENSES
Employee expense 1,994,698 902,566 -
Utilities 26,711 -
Repairs and maintenance 40,928
Supplies and services 5,116 1,485,720 19,294
Insurance 10,877 21,138
Depreciation 10,738
Total Operating Expenses 2,010,691 2,487,801 19,294
OPERATING INCOME (LOSS) (5,503) (37,172) (524)
NONOPERATING REVENUES (EXPENSES)
Investment earnings - -
Gain (loss) on disposal of assets - 7,329 -
INCOME (LOSS) BEFORE TRANSFERS (5,503) (29,843) (524)
TRANSFERS OUT (4,134)
CHANGE IN NET POSITION (5,503) (33,977) (524)
NET POSITION (DEFICIT), BEGINNING (20,892) 98,264 3,626
NET POSITION (DEFICIT), ENDING $ (26,395) $ 64,287 $ 3,102
118
EXHIBIT C -2
Health Workers'
Insurance Compensation
Reserve Reserve
Total
$ 7,397,769 $ 873,218 $ 12,709,189
- 1,145 37,530
7,397,769
874,363 12,746,719
2,897,264
26,711
40,928
8,511,194 648,768 10,670,092
33,421 69,505 134,941
- - 10,738
8,544,615 718,273 13,780,674
(1,146,846) 156,090 (1,033,955)
16,172
4,965 21,137
- - 7,329
(1,130,674) 161,055 (1,005,489)
- - (4,134)
(1,130,674) 161,055 (1,009,623)
1,750,533 (1,032,728) 798,803
$ 619,859 $ (871,673) $ (210,820)
119
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CASH FLOWS
INTERNAL SERVICE FUNDS
YEAR ENDED JUNE 30, 2013
General Garage Stores/
Service Service Printing
CASH FLOWS FROM OPERATING ACTIVITIES
Cash received from customers $ 2,005,189 $ 2,414,244 $ 18,770
Cash payments to suppliers for goods and services (15,599) (1,571,938) (20,464)
Cash payments to employees for services (1,995,903) (901,575)
Other operating receipts 36,385
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES (6,313) (22,884) (1,694)
CASH FLOWS FROM NONCAPITAL FINANCING
ACTIVITIES
Transfers to other funds
Proceeds from interfund balances
NET CASH PROVIDED BY (USED FOR) NONCAPITAL
FINANCING ACTIVITIES
(4,134)
6,313 28,071
6,313
1,694
23,937 1,694
CASH FLOWS FROM CAPITAL AND RELATED
FINANCING ACTIVITIES
Proceeds from sale of capital assets - 7,329
Acquisition and construction of capital assets - (40,717)
NET CASH USED BY CAPITAL AND RELATED
FINANCING ACTIVITIES - (33,388)
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 $
(32,335)
32,335
$ - $
RECONCILIATION OF OPERATING INCOME (LOSS)
TO NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES
Operating income (loss) $ (5,503) $ (37,172) $ (524)
Adjustments to reconcile operating income (loss) to net
cash provided by (used for) operating activities
Depreciation - 10,738
Change in assets and liabilities
(Increase) Decrease in receivables - -
(Increase) Decrease in inventories and prepaid items (21,985)
Increase (decrease) in accounts payable 394 24,544
(Decrease) in accrued liabilities (1,204) 991
Total Adjustments (810) 14,288
NET CASH PROVIDED BY (USED FOR) OPERATING
ACTIVITIES $ (6,313) $ (22,884) $ (1,694)
120
EXHIBIT C -3
Health Workers'
Insurance Compensation
Reserve Reserve Total
$ 7,317,177 $ 873,218 $ 12,628,598
(8,380,087) (774,358) (10,762,445)
- - (2,897,478)
- 1,145 37,530
(1,062,910) 100,005 (993,795)
15,287
(1,047,623)
(4,134)
36,078
31,944
7,329
(40,717)
(33,388)
4,760 20,047
104,765 (975,192)
2,117,740 104,221 2,254,296
$ 1,070,117 $ 208,986 $ 1,279,104
$ (1,146,846) $ 156,090 $ (1,033,955)
- - 10,738
(80,592) - (80,592)
- - (23,154)
164,528 (56,085) 133,382
- (214)
83,936 (56,085) 40,160
$ (1,062,910) $
100,005 $ (993,795)
121
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.
122
CITY OF DUBUQUE, IOWA
COMBINING STATEMENT OF CHANGES IN ASSETS AND LIABILITIES
AGENCY FUND
FOR THE YEAR ENDED JUNE 30, 2013
EXHIBIT D -1
Balance Balance
Beginning End
of Year Additions Deductions of Year
CABLE EQUIPMENT FUND
ASSETS
Cash and pooled cash investments $ 265,986 $ 214,167 $ 108,230 $ 371,923
Accounts receivable 55,229 - 3,176 52,053
Total Assets $ 321,215 $ 214, 167 $ 111,406 $ 423,976
LIABILITIES
Accounts payable $ - $ 178 $ - $ 178
Due to other agency 321,215 102,583 - 423,798
Total Liabilities $ 321,215 $ 102,761 $ - $ 423,976
DOG TRACK DEPRECIATION FUND
ASSETS
Cash and pooled cash investments $ 1,207,219 $ 131,291 $ 870,038 $ 468,472
Accrued interest 2,747 950 2,747 950
Total Assets $ 1,209,966 $ 132,241 $ 872,785 $ 469,422
LIABILITIES
Due to other agency $ 1,209,966 $ - $ 740,544 $ 469,422
TOTAL AGENCY FUNDS
ASSETS
Cash and pooled cash investments $ 1,473,205 $ 345,458 $ 978,268 $ 840,395
Accounts receivable 55,229 - 3,176 52,053
Accrued interest 2,747 950 2,747 950
Total Assets $ 1,531,181 $ 346,408 $ 984,191 $ 893,398
LIABILITIES
Accounts payable $ - $ 178 $ - $ 178
Due to other agency 1,531,181 102,583 740,544 893,220
Total Liabilities $ 1,531,181 $ 102,761 $ 740,544 $ 893,398
123
124
Statistical Section (Unaudited)
June 30, 2013
City of Dubuque, Iowa
125
126
CITY OF DUBUQUE, IOWA
STATISTICAL SECTION
This statistical section of the City's comprehensive annual fmancial 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 fmancial 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.
128
138
142
152
154
Sources: Unless otherwise noted, the information in these schedules is derived from the comprehensive
annual financial reports for the relevant year.
127
CITY OF DUBUQUE, IOWA
NET POSITION BY COMPONENT
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2004 2005 2006 2007 2008
Governmental activities
Net Investment in capital assets $ 231,863,231 $ 249,881,646 $ 267,762,059 $ 288,978,975 $ 296,143,451
Restricted 31,931,803 24,180,874 21,693,357 23,900,328 31,970,724
Unrestricted 11,322,661 11,236,870 15,132,486 21,921,571 18,987,841
Total governmental activities net position $ 275,117,695 $ 285,299,390 $ 304,587,902 $ 334,800,874 $ 347,102,016
Business -type activities
Net Investment in capital assets $ 92,301,043 $ 93,036,089 $ 88,802,536 $ 91,483,532 $ 95,104,575
Restricted 554,005 554,205 554,294 554,318 554,505
Unrestricted 10,502,939 12,854,730 13,258,072 11,214,900 11,312,806
Total business- type activities net position $ 103,357,987 $ 106,445,024 $ 102,614,902 $ 103,252,750 $ 106,971,886
Primary government
Net Investment in capital assets $ 324,164,274 $ 342,917,735 $ 356,564,595 $ 380,462,507 $ 391,248,026
Restricted 32,485,808 24,735,079 22,247,651 24,454,646 32,525,229
Unrestricted 21,825,600 24,091,600 28,390,558 33,136,471 30,300,647
Total primary government net position $ 378,475,682 $ 391,744,414 $ 407,202,804 $ 438,053,624 $ 454,073,902
128
TABLE 1
Year
2009 2010 2011 2012 2013
$ 298,855,346 $ 309,126,684 $ 329,416,245 $ 347,890,769 $ 342,046,442
27,171,123 26,064,318 23,738,199 26,180,100 23,491,207
(5,280,715) (11,256,312) (4,891,381) (16,876,988) (8,361,688)
$ 320,745,754 $ 323,934,690 $ 348,263,063 $ 357,193,881 $ 357,175,961
$ 120,473,286 $ 124,805,513 $ 135,026,753 $ 132,237,734 $ 138,498,777
770,157 129,642 893,519 957,802 6,011,848
12,321,125 11,679,961 2,603,799 10,665,596 (641,384)
$ 133,564,568 $ 136,615,116 $ 138,524,071 $ 143,861,132 $ 143,869,241
$ 419,328,632 $ 433,932,197 $ 464,442,998 $ 480,128,503 $ 480,545,219
27,941,280 26,193,960 24,631,718 27,137,902 29,503,055
7,040,410 423,649 (2,287,582) (6,211,392) (9,003,072)
$ 454,310,322 $ 460,549,806 $ 486,787,134 $ 501,055,013 $ 501,045,202
129
CITY OF DUBUQUE, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Fiscal -
2004 2005 2006 2007 2008
Expenses
Governmental activities:
Public safety $ 16,605,481 $ 18,636,877 $ 18,892,980 $ 20,326,724 $ 16,966,210
Public works 12,847,410 17,088,983 16,390,322 16,505,560 18,847,068
Health and social services 1,290,619 654,469 678,748 759,367 800,566
Culture and recreation 7,849,114 8,474,183 9,627,505 9,837,299 10,857,409
Community and economic development 12,662,552 9,680,046 8,541,167 11,965,805 11,961,584
General government 3,773,136 4048,475 3,868,687 4,940,154 5,804,003
Interest on long -tenn debt 1,248,498 1,298,367 1,460,730 1,400,748 2,577,417
Total governmental activities expenses 56,276,810 59,881,400 59,460,139 65,735,657 67,814,257
Business -type activities:
Sewage disposal works 5,282,016 4,656,172 5,298,353 5,814,076 6,141,524
Water utility 4,368,738 4,232,489 4,700,483 4,780,063 4,814,692
Stonnwater utility 1,184,968 1,114,811 1,153,628 1,198,675 1,706,735
Parking facilities 1,655,429 1,604,071 1,629,427 1,611,447 2,173,110
America's River Project 1,064,701 515,570 82,617 434,667 126,699
Refuse collection 2,238,254 2,202,800 2,463,795 2,496,018 2,724,050
Transit system 2,257,078 2,326,908 2,555,080 2,760,459 2,703,983
Salt - - - - -
Total business-type activities expenses 18,051,184 16,652,821 17,883,383 19,095,405 20,390,793
Total primary government expenses $ 74,327,994 $ 76,534,221 $ 77,343,522 $ 84,831,062 $ 88,205,050
Program Revenues
Governmental activities:
Charges for services
Public safety 1,785,787 1,900,938 1,809,481 1,857,324 2,088,723
Public works 3,392,650 3,371,073 3,370,291 4,839,781 4,061,883
Culture and recreation 2,282,983 2,143,246 2,218,315 2,251,562 2,109,571
Other activities 873,457 945,712 895,920 1,074,550 1,382,889
Operating grants and contributions 12,197,307 14,603,106 12,902,410 11,641,904 11,709,123
Capital grants and contributions 5,153,258 6,919,296 6,881,573 23,741,282 8,032,602
Total governmental activities program revenues 25,685,442 29,883,371 28,077,990 45,406,403 29,384,791
Business -type activities:
Charges for services
Sewage disposal works 4,719,491 4,552,587 5,077,491 5,259,432 5,484,079
Water utility 4,307,238 4,224,074 4,669,340 4,743,896 4,875,530
Stonnwater utility 754,101 684,570 928,850 1,227,243 1,766,334
Parking facilities 1,643,490 1,889,937 1,886,642 1,977,757 2,141,607
America's River Project 881,089 26,061 51,373 3,099 2,140
Refuse collection 2,157,285 2,283,677 2,397,525 2,642,251 2,710,583
Transit system 319,216 389,106 341,743 237,088 195,817
Salt - - -
Operating grants and contributions 825,538 651,967 920,762 1,167,344 1,209,636
Capital grants and contributions 11,007,676 3,030,378 2,769,657 1,670,874 2,830,263
Total business- type activities program revenues 26,615,124 17,732,357 19,043,383 18,928,984 21,215,989
Total primary government program revenues $ 52,300,566 $ 47,615,728 $ 47,121,373 $ 64,335,387 $ 50,600,780
130
TABLE 2
Year
2009 2010 2011 2012 2013
$ 22,038,265 $ 22,067,988 $ 23,759,068 $ 26,326,367 $ 28,292,481
19,079,688 22,121,629 18,978,423 22,917,747 21,607,536
849,237 852,099 1,072,347 913,954 716,970
12,640,716 11,446,084 10,911,733 12,749,558 13,647,178
12,693,140 15,422,099 12,890,841 22,030,950 17,388,720
6,423,908 7,963,016 9,052,704 6,133,983 6,248,483
3,164,126 3,101,897 3,294,951 3,294,912 4,049,640
76,889,080 82,974,812 79,960,067 94,367,471 91,951,008
6,326,708 6,631,326 7,899,011 9,718,669 9,375,748
6,100,491 6,093,827 6,523,993 7,410,710 6,817,772
2,138,198 2,213,144 2,811,321 2,750,767 3,347,304
2,147,405 4,003,776 4,775,834 3,152,055 3,586,405
61,927 423,158 180,086 22,787 22,770
2,788,665 2,703,887 2,828,891 3,173,075 3,468,859
2,625,145 2,832,066 2,947,958 3,629,750 3,492,095
- - 671,647 661,395 346,066
22,188,539 24,901,184 28,638,741 30,519,208 30,457,019
$ 99,077,619 $ 107,875,996 $ 108,598,808 $ 124,886,649 $ 122,408,027
2,020,625 2,348,064 2,579,573 2,915,562 2,495,737
4,456,364 4,046,583 5,331,667 5,178,439 4,472,479
2,279,688 2,192,886 2,108,177 2,321,553 2,488,844
1,557,597 2,412,880 2,530,234 2,873,298 3,264,979
12,599,967 20,830,113 14,204,627 23,013,997 13,995,316
4,811,729 10,748,522 23,482,866 16,560,811 10,791,945
27,725,970 42,579,048 50,237,144 52,863,660 37,509,300
5,904,535 5,893,730 6,643,974 7,827,281 8,924,785
5,320,642 5,326,202 5,638,277 6,037,073 6,922,582
2,291,249 2,282,625 2,993,539 3,180,134 3,192,256
2,224,185 2,399,843 2,750,610 2,908,989 2,883,865
7,000 - -
2,872,649 2,893,017 3,082,197 3,257,960 3,346,795
196,260 273,433 193,236 278,835 307,314
773,258 665,942 395,000
1,095,946 1,652,277 2,773,933 1,579,493 2,264,695
3,613,321 3,800,582 6,536,527 5,323,486 1,240,583
23,518,787 24,528,709 31,385,551 31,059,193 29,477,875
$ 51,244,757 $ 67,107,757 $ 81,622,695 $ 83,922,853 $ 66,987,175
(Continued)
131
CITY OF DUBUQUE, IOWA
CHANGES IN NET POSITION
LAST TEN FISCAL YEARS
(ACCRUAL BASIS OF ACCOUNTING)
Net (Expense)/Revenue
Governmental activities
Business -type activities
Total primary government net expense
Fiscal -
2004 2005 2006 2007 2008
$ (30,591,368) $ (29,998,029) $ (31,382,149) $ (20,329,254) $ (38,429,466)
8,563,940 1,079,536 1,160,000 (166,421) 825,196
$ (22,027,428) $ (28,918,493) $ (30,222,149) $ (20,495,675) $ (37,604,270)
General Revenues and Other Changes in Net Position
Governmental activities:
General Revenues
Property taxes 18,588,367 19,767,492 19,716,620 21,656,908 22,744,563
Local option sales tax 7,105,183 6,963,124 7,336,124 7,817,403 8,020,889
HoteVmotel tax 1,314,114 1,383,660 1,862,439 1,569,743 1,622,455
Utility franchise fees 862,275 1,310,064 1,521,201 1,492,920 1,516,123
Gaming 11,631,022 11,694,105 14,034,847 15,556,551 15,346,468
Unrestricted investment earnings 497,361 1,190,337 1,081,141 1,870,403 2,741,499
Gain on sale of capital assets 175,231 170,642 77,627 - 92,525
Other 638,681 560,789 572,602 586,931 898,241
Transfers 10,956,246 (1,684,581) 5,033,974 (7,633) (2,252,155)
Total governmental activities 51,768,480 41,355,632 51,236,575 50,543,226 50,730,608
Business -type activities:
General Revenues
Unrestricted investment earnings 181,674 322,884 339,599 796,636 630,049
Gain on sale of capital assets 25 36 703 - 11,736
Extraordinary item - - - - -
Transfers (10,956,246) 1,684,581 (5,033,974) 7,633 2,252,155
Total business -type activities (10,774,547) 2,007,501 (4,693,672) 804,269 2,893,940
Total primary government $ 40,993,933 $ 43,363,133 $ 46,542,903 $ 51,347,495 $ 53,624,548
Change in Net Position
Governmental activities
Business -type activities
$ 21,177,112 $ 11,357,603 $ 19,854,426 $ 30,213,972 $ 12,301,142
(2,210,607) 3,087,037 (3,533,672) 637,848 3,719,136
Total primary government $ 18,966,505 $ 14,444,640 $ 16,320,754 $ 30,851,820 $ 16,020,278
132
TABLE 2
(Continued)
Year
2009 2010 2011 2012 2013
$ (49,163,110) $ (40,395,764) $ (29,722,923) $ (41,503,811) $ (54,441,708)
1,330,248 (372,475) 2,746,810 539,985 (979,144)
$ (47,832,862) $ (40,768,239) $ (26,976,113) $ (40,963,826) $ (55,420,852)
23,716,819 24,876,073 28,249,114 30,816,614 32,668,554
7,649,853 8,112,471 7,929,761 8,459,888 8,764,787
1,611,954 1,678,806 1,826,809 1,903,944 1,953,763
1,486,292 1,591,712 2,488,858 2,272,481 2,568,347
9,627,391 8,209,761 13,327,223 8,785,453 8,452,298
2,215,413 1,339,709 668,363 1,529,149 201,153
407,503 149,937 1,417,048 907,122
918,605 880,930 622,494 -
(24,826,982) (3,104,762) (1,211,263) (4,749,948) (1,092,236)
22,806,848 43,584,700 54,051,296 50,434,629 54,423,788
433,148 294,562 184,581 206,672 65,351
2,304 23,699 19,337 84,178 384,697
(2,253,036) (243,722) (555,031)
24,826,982 3,104,762 1,211,263 4,749,948 1,092,236
25,262,434 3,423,023 (837,855) 4,797,076 987,253
$ 48,069,282 $ 47,007,723 $ 53,213,441 $ 55,231,705 $ 55,411,041
$ (26,356,262) $ 3,188,936 $ 24,328,373 $ 8,930,818 $ (17,920)
26,592,682 3,050,548 1,908,955 5,337,061 8,109
$ 236,420 $ 6,239,484 $ 26,237,328 $ 14,267,879 $ (9,811)
133
CITY OF DUBUQUE, IOWA
FUND BALANCES, GOVERNMENTAL FUNDS
LAST TEN FISCAL YEARS
(MODIFIED ACCRUAL BASIS OF ACCOUNTING)
General Fund
Reserved
Unreserved
Nonspendable
Assigned
Unassigned
Total general fund
All Other Governmental Funds
Reserved
Unreserved, reported in:
Special revenue fiords
Debt service fiord
Capital projects fiords
Permanent fiords
Nonspendable
Restricted
Committed
Unassigned
Total all other governmental fiords
2004
2005
2006
2007
$ 3,233,335
13,685,063
$ 3,169,453
13,706,134
$ 1,477,141
16,050,997
$ 4,455,303
17,827,631
Fiscal -
2008
$ 1,699,825
17,982,016
$ 16,918,398 $ 16,875,587 $ 17,528,138 $ 22,282,934 $ 19,681,841
$ 14,231,390
9,720,412
(68,569)
7,353,593
71,373
$ 13,607,759
5,777,233
(56,320)
11,191,461
73,628
$ 15,564,016
7,277,471
(981,248)
83,367
$ 13,942,519
7,586,898
4,195,354
115,825
$ 31,887,038
7,431,931
7,875,448
33,958
$ 31,308,199 $ 30,593,761 $ 21,943,606 $ 25,840,596 $ 47,228,375
*Classification changed in 2011 due to adoption of GASB 54.
134
TABLE 3
Year
2009 2010 2011 2012 2013
$ 4,864,701 $ 5,199,760 $
14,206,181 8,622,705
*
*
*
$ 19,070,882 $
868,631
8,904,490
6,139,306
13,822,465 $ 15,912,427 $
* $ *
*
6,646,278
3,434,440
8,806,171
$ 18,886,889
5,613,359
5,549,803
9,371,016
20,534,178
$ 19,634,305
5,981,390
5,659,214
35,550
*
*
*
*
$ 24,404,656 $
4,011,022
(989,025)
33,273
10,320,305
18,010,570
5,203,472
(377,363)
* $ *
*
*
*
*
*
10,975,468
31,362,126
5,843,671
(429,344)
9,092,520
30,738,046
10,827,172
■
$ 31,310,459 $ 27,459,926 $ 33,156,984 $ 47,751,921 $ 50,657,738
135
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
Intergovernmental
Charges for services
Fines and forfeits
Investment earnings
Contributions
Gaming
Miscellaneous
Total revenues
Expenditures
Current
Public safety
Public works
Health and social services
Culture and recreation
Community and economic development
General government
Debt service
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
Total other financing sources (uses)
Net change in fund balances
Debt service as a percentage of noncapital expenditures
Fiscal -
2004
2005
2006
2007
2008
$ 27,861,273 $ 29,430,135 $ 30,043,167 $ 32,526,525 $ 33,898,692
717,305 197,195 322,214 586,459 177,585
1,063,081 1,078,722 965,712 1,052,896 1,153,429
17,057,994 18,370,358 15,021,722 16,744,703 14,256,523
5,666,307 5,918,542 6,620,243 7,351,191 7,833,151
241,572 267,536 204,201 158,360 188,603
502,932 1,197,691 1,096,445 1,913,420 2,731,953
345,415 306,809 246,908 1,168,463 6,134,002
11,631,022 11,694,105 14,034,847 15,556,551 15,346,468
1,139,057 1,573,305 1,106,991 1,149,546 1,269,376
66,225,958 70,034,398 69,662,450 78,208,114 82,989,782
16,764,510 18,652,246 19,535,369
10,723,527 21,301,239 11,605,567
721,906 662,231 715,598
7,470,264 8,180,832 9,998,462
11,924,011 9,825,470 9,981,645
4,227,335 4,022,785 4,090,866
2,117,773 1,769,960 1,325,970
1,304,802 1,240,427 1,493,504
6,865,119 8,226,840 14,528,340
62,119,247 73,882,030 73,275,321
20,743,196
12,506,378
783,209
10,244,244
11,695,902
4,441,043
1,663,339
1,412,012
8,227,257
71,716,580
21,542,661
16,331,107
797,644
10,277,787
11,847,512
6,310,939
1,762,375
2,406,431
15,351,848
86,628,304
4,106,711
(3,847,632)
(3,612,871)
6,491,534
(3,638,522)
795,000
8,662,300
(15,060,669)
264,344
(5,339,025)
$ (1,232,314)
(58,487)
7,277,665
12,981,655
(16,105,184)
170,642
4,266,291
$ 418,659
13,682
1,515,750
(1,494,371)
7,334,605
(11,904890)
150,491
(4,384,733)
$ (7,997,604)
743,591 23,083,696
(266,158)
10,394,726
(11,789,548)
2,811,483
2,160,252
$ 8,651,786
2,965,000
(2,875,000)
14,801,589
(18,185,109)
2,901,190
22,425,208
$ 18,786,686
6.32% 5.46%
4.99%
5.01% 6.55 %
136
TABLE 4
Year
2009 2010 2011 2012 2013
$ 34,454,146 $ 36,252,156 $ 40,428,894 $ 43,443,669 $ 45,440,973
250,372 318,178 232,535 596,138 175,486
1,088,386 1,115,472 1,170,922 1,570,022 1,271,771
15,796,822 27,310,624 26,171,082 37,574,783 26,580,831
8,029,189 8,063,284 8,723,086 9,296,329 8,952,179
199,839 224,601 454,117 525,389 484,128
2,206,382 1,348,615 654,587 1,511,437 180,016
1,369,759 2,333,995 1,297,621 1,578,376 370,154
9,627,391 8,209,761 13,327,223 8,785,453 8,452,298
1,600,679 2,111,834 2,075,262 1,319,558 1,315,915
74,622,965 87,288,520 94,535,329 106,201,154 93,223,751
21,335,192
14,261,551
815,873
12,227,506
11,953,279
5,836,839
2,169,678
3,095,166
24,274,120
95,969,204
21,979,729
19,251,625
813,609
14,909,517
14,654,816
6,368,308
2,651,765
3,145,735
14,831,118
98,606,222
(21,346,239)
(11,317 702)
5,905,000
(48,516)
7,451,152
(9,084,228)
593,956
4,817,364
$ (16,528,875)
4,722,176
(31,990)
554,796
8,885,000
(9,405,000)
7,993,297
(10,562,137)
62,610
2,218,752
$ (9,098,950)
23,950,386
14,429,415
1,040,114
11,279,951
12,361,176
7,686,929
2,820,371
3,321,157
15,102,893
91,992,392
24,476,772
12,385,929
828,837
10,873,474
22,237,140
6,335,947
3,224,680
3,220,546
23,459,891
107,043,216
26,506,714
13,416,108
680,466
11,218,019
18,678,496
5,035,108
3,182,240
3,991,115
16,636,698
99,344,964
2,542,937 (842,062) (6,121,213)
6,996,722
(39,547)
1,642
705,000
(690,000)
15,850,523
(18,961,892)
628,482
753,153
5,244,083
$ 7,787,020
27,215,363
(71,689)
123,990
8,773,387
(18,336,603)
132,425
2,221,877
20,058,750
$ 19,216,688
6,577,268
4,949,148
(4,949,148)
15,295,630
(16,981,203)
49,209
2,438,837
7,379,741
$ 1,258,528
7.68% 7.74% 8.49% 7.65% 8.57%
137
CITY OF DUBUQUE, IOWA
TAXABLE AND ASSESSED VALUE OF PROPERTY
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
TABLE 5
Real Property
Levy Fiscal Taxable
Year Year Value
2002 2004 $ 1,572,776
2003 2005 1,666,033
2004 2006 1,710,334
2005 2007 1,780,354
2006 2008 1,823,304
2007 2009 1,949,071
2008 2010 2,033,135
2009 2011 2,159,622
2010 2012 2,243,474
2011 2013 2,337,129
Assessed
Value
$ 2,350,317 $
2,575,400
2,679,078
2,804,568
2,870,178
3,171,681
3,239,112
3,349,823
3,406,186
3,476,638
Exemptions
Real
Property
9,694
9,599
9,862
9,122
8,939
9,298
9,246
8,885
8,875
8,872
Total
Taxable
Value to
Total Total
Taxable Assessed Assessed Total Direct
Value Value Value Tax Rate
$ 1,563,082 $ 2,350,317 66.51% $ 10.27303
1,656,434 2,575,400 64.32 10.07200
1,700,472 2,679,078 63.47 9.69910
1,771,232 2,804,568 63.16 9.98030
1,814,365 2,870,178 63.21 10.31685
1,939,773 3,171,681 61.16 9.96904
2,023,889 3,239,112 62.48 9.85777
2,150,737 3,349,823 64.20 10.02742
2,234,599 3,406,186 65.60 10.45111
2,328,257 3,476,638 66.97 10.78478
138
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 Dubuque
Year Year City District Independents Voc. Tech County Total City to Total
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
2011 2013 10.78477 15.40388 0.71653 0.98407 6.43124 34.32049 31.42
Separate components of the Dubuque City Rate is as follows
Levy Fiscal Public Employee Debt
Year Year General Transit Insurance Benefits Service
Total
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
2011 2013 8.10000 0.49516 0.13965 2.02267 0.02729 10.78477
Source: Dubuque County Auditor's Office.
139
CITY OF DUBUQUE, IOWA
PRINCIPAL PROPERTY TAXPAYERS
CURRENT YEAR AND NINE YEARS AGO
(IN THOUSANDS OF DOLLARS)
TABLE 7
2013 2004
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 1.63% $ %
ITC Midwest LLC 37,147 2 1.07
Kennedy Mall Inc. 26,940 3 0.77 23,608 1 1.00
Progressive Processing LLC (Hormel) 21,397 4 0.62
Medical Associates Realty LLC 18,815 5 0.54 20,952 2 0.89
CenturyLlNK 18,745 6 0.54
Nordstrom Inc 17,221 7 0.50 16,060 4 0.68
McGraw -Hill Education LLC 14,729 8 0.42 7,700 10 0.33
Otto A. LLC 14,100 9 0.41 17,532 3 0.75
Platinum Holdings LLC 11,588 10 0.33
Minglewood Limited Partnership 8,944 7 0.38
Plaza 20 Inc. 10,034 6 0.43
U.S. West Communications 10,393 5 0.44
Wa1 -Mart 7,744 9 0.33
American Trust & Savings Bank 8,663 8 0.37
$ 237,466 6.83% $ 131,630 5.60%
Source: Dubuque County Auditor's Office
140
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 Levy Levy Tax Taxes Tax Collections to Total Delinquent Taxes to Total
Year Year (1) Collections Collected Collections (2) Tax Levy Taxes Tax Levy
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
2013 2012 22,789 22,749 100 7 22,755 100.0 182 0.80
(1) Excludes tax increment levy.
(2) Includes taxes collected in June by the County but not received by the City until July.
141
CITY OF DUBUQUE
RATIOS OF OUTSTANDING DEBT BY TYPE
LAST TEN FISCAL YEARS
Governemental Activities
Tax
General Tax Increment Increment
Fiscal Obligation Financing Financing Other Loans
Year Bonds Bonds Notes Payable
2004 $ 19,010,000 $ 3,820,394 $ 655,000 $
2005 24,902,241 3,450,820 622,211
2006 24,036,627 3,040,304 590,439
2007 22,870,646 2,594,831 1,279,885 -
2008 21,752,907 24,879,116 1,279,885 -
2009 25,941,693 24,363,262 1,169,684 150,000
2010 27,887,864 24,449,674 1,049,696 282,857
2011 32,561,048 23,037,222 1,931,348 282,857
2012 53,087,811 22,258,283 1,767,664 4,735,714
2013 56,517,165 21,920,537 1,235,903 5,638,571
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.
142
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)
$ 6,622,750 $ 1,350,000 $ $ 31,458,144 1.85% $ 545
8,037,594 1,150,000 38,162,866 2.16 662
11,428,712 940,000 - 40,036,082 2.15 694
10,895,593 720,000 - 38,360,955 2.00 665
11,384,371 611,977 490,000 - 60,398,256 3.03 1,047
14,448,770 3,914,076 1,434,713 390,890 71,813,088 3.59 1,245
23,957,802 8,289,621 1,115,430 371,978 87,404,922 4.25 1,515
25,254,652 33,195,408 6,777,793 2,252,109 125,292,437 5.37 2,174
35,108,003 61,957,749 6,521,188 331,235 185,767,647 7.65 3,223
34,921,131 75,415,431 6,260,299 309,304 202,218,341 * 3,508
143
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
2004 $ 25,633 $ 1,563,082 1.64% $ 2,350,317 1.09% $ 444
2005 32,940 1,656,434 1.99 % 2,575,400 1.28 % 571
2006 35,456 1,700,472 2.09 % 2,679,078 1.32 % 615
2007 33,766 1,771,232 1.91 % 2,804,568 1.20 % 585
2008 33,137 1,814,365 1.83% 2,870,178 1.15% 574
2009 40,390 1,939,773 2.08 % 3,171,681 1.27 % 700
2010 51,846 2,023,899 2.56% 3,239,112 1.60% 899
2011 57,816 2,159,622 2.68% 3,349,823 1.73% 1,003
2012 88,196 2,243,474 3.93 % 3,406,186 2.59 % 1,530
2013 91,438 2,337,129 3.91 % 3,476,638 2.63 % 1,586
144
CITY OF DUBUQUE, IOWA
DIRECT AND OVERLAPPING DEBT
AS OF JUNE 30, 2013
TABLE 11
Net
General
Obligation
Bonded Tax Tax Amount
Debt Increment Increment Percentage Applicable
Outstanding Financing Financing Capital Loans Applicable To
Jurisdiction (1) Bonds Notes Notes Payable to City Government
Direct, City of Dubuque, Iowa $ 56,517,165 $ 21,920,537 $ 1,235,903 $ - $ 5,638,571 100.00 % $ 85,312,176
Overlapping:
Dubuque County
Dubuque Community School District
Northeast Iowa Community College
Total Overlapping
Total
3,850,000
57,595,000
281,791
57,595,000
3,850,000
0.06 % 169
100.00 % 3,850,000
0.02 % 11,519
281,791 3,861,688
$ 113,717,022 $ 22,142,335 $ 1,235,903 $ 3,850,000 $ 5,920,362 $ 89,173,864
Source: Dubuque County Auditor, Dubuque Community School District and Northeast Iowa Community College
(1) Excludes debt reported in enterprise funds.
Note: Overlapping governments are those that coincide, at least in part, with the geographic boundaries of the City.
This schedule estimates the portion of the outstanding debt of those overlapping governments that is borne by the residents and businesses of
Dubuque. This process recognizes that, when considering the city's ability to issue and repay long -tenn debt, the entire debt burden borne by
the residents and businesses should be taken into account. However, this does not imply that every taxpayer is a resident, and therefore
responsible for repaying the debt, of each overlapping government.
145
CITY OF DUBUQUE, IOWA
LEGAL DEBT MARGIN INFORMATION
LAST TEN FISCAL YEARS
(IN THOUSANDS OF DOLLARS)
2004 2005 2006 2007
Debit limit $ 117,516 $ 133,149 $ 138,789 $ 145,401
Total net debt
applicable to limit 30,185 37,177 39,443 38,060
Legal debit margin $ 87,331 $ 95,972 $ 99,346 $ 107,341
Total net debt
applicable to the debt
limit as a percentage
of debt limit 25.69 ° 27.92% 28.42 % 26.18%
146
TABLE 12
2008 2009 2010 2011 2012 2013
$ 148,824 $ 163,621 $ 167,247 $ 174,333 $ 177,668 $ 181,668
60,485 76,182 101,152 92,443 142,316 143,303
$ 88,339 $ 87,439 $ 66,095 $ 81,890 $ 35,352 $ 38,365
40.64% 46.56 %
60.48% 53.03%
80.10% 78.88%
Legal Debt Margin Calculation for Fiscal Year 2013
Estimated actual value $ 3,633,353,076
Debt limit - 5% of total actual valuation $ 181,667,654
Debt applicable to limit:
(Including GO Debt, TIF Debt, and Lease
Obligations Paid from General Fund) $ 143,302,946
Legal debt margin $ 38,364,708
147
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
Year (1) (2) Service Principal Interest Total Coverage (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
2013 6,944 5,391 1,553 432 344 776 2.00
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
2013 3,194 2,019 1,175 266 279 545 2.16
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
2013 8,951 6,113 2,838 1,916 1,298 3,214 0.88
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)
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.
148
CITY OF DUBUQUE, IOWA
WATER AND SEWER RECEIPT HISTORY
LAST TEN FISCAL YEARS
TABLE 14
Fiscal Year
Water Receipts Sewer Receipts
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
2013 7,077,986 8,688,996
Source: Cash basis receipt ledgers.
Note: Revenue includes penalties, investment earnings and sales tax collected and remitted to the State of Iowa.
149
CITY OF DUBUQUE, IOWA
WATER METERS BY RATE CLASS
LAST EIGHT FISCAL YEARS*
TABLE 15
Fiscal Year Residential Commercial Industrial Government Total
2006 19,813 1,820 73 35 21,741
2007 19,914 1,839 74 38 21,865
2008 19,970 1,878 70 45 21,963
2009 20,058 1,895 72 48 22,073
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
2013 20,753 1,921 80 53 22,807
*Prior two years information not available.
150
CITY OF DUBUQUE, IOWA
LARGEST WATER AND SEWER CUTOMERS
FISCAL YEAR 2013
TABLE 16
Percentage of Percentage of
Water Total Water Sewer Total Sewer
Customer Receipts Rank Receipts Receipts Rank Receipts
Rousselot $ 271,312 1 3.83 % $ 556,882 1 6.41 %
Hormel 144,510 2 2.04 301,695 2 3.47
Alliant Energy 75,606 3 1.07
Loras College 68,366 4 0.97 92,386 6 1.06
Prairie Farms Dairy 60,605 5 0.86 152,794 4 1.76
Water & Resource Recovery Center 57,905 6 0.82
Mercy Medical Center 56,448 7 0.80 98,388 5 1.13
University of Dubuque 55,620 8 0.79 69,032 9 0.79
Dubuque Community Schools 54,154 9 0.77 73,156 8 0.84
Premier Linen & Dry Cleaning 40,492 10 0.57 83,437 7 0.96
Inland Protein Corporation 159,949 3 1.84
Clarke University 54,302 10 0.62
Total Revenue $ 7,077,986 $ 8,688,996
151
CITY OF DUBUQUE, IOWA
DEMOGRAPHIC AND ECONOMIC STATISTICS
LAST TEN CALENDAR YEARS
TABLE 17
Per Capita Public
Personal Median School Unemployment
Personal Income Age Enrollment Rate
Year Population Income (1) (2) (3) (4)
2004 57,686 $ 1,704,563,614 $ 29,549 37 10,428 4.4%
2005 57,686 1,768,075,900 30,650 37 10,547 4.5
2006 57,686 1,862,680,940 32,290 37 10,733 3.5
2007 57,686 1,920,366,940 33,290 37 10,727 7.0
2008 57,686 1,994,262,706 34,571 38 10,614 3.8
2009 57,686 2,002,973,292 34,722 37 10,697 6.2
2010 57,686 2,055,640,610 35,635 37 10,517 4.0
2011 57,637 2,332,569,390 40,470 37 10,467 5.8
2012 57,637 2,428,016,262 42,126 37 10,513 5.2
2013 57,637 * * 39 * 5.3
Data Sources:
(1) U.S. Department of Commerce, Bureau of Economic Analysis.
(2) Greater Dubuque Development Corporation.
(3) Dubuque Community School District.
(4) Iowa Department of Employment Services as of June 30.
* Unavailable at report date.
152
CITY OF DUBUQUE, IOWA
PRINCIPAL EMPLOYERS
CURRENT YEAR AND NINE YEARS AGO
TABLE 18
2013 2006*
Percentage
of Percentage of
# of Total City # of Total City
Employer Employees Rank Employment Employees Rank Employment
John Deere (2) 2,400 1 4.44 % 1,900 1 3.54%
Dubuque Community Schools 1,946 2 3.60 1,410 2 2.62
IBM 1,300 3 2.40
Medical Associates 1,046 4 1.93 998 5 1.86
Mercy Medical Center 1,000 5 1.85 1,324 3 2.46
Finley Hospital 859 6 1.59 920 7 1.71
City of Dubuque 691 7 1.28 716 10 1.33
Diamond Jo 600 8 1.11
Eagle Window & Door 550 9 1.02 950 6 1.77
Prudential Retirement 528 10 0.98
Flexsteel 750 9 1.40
Heartland Financial USA, Inc. 760 8 1.41
McCoy Group 1,200 4 2.23
10,920 20.18% 10,928 20.34%
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.
*2004 and 2005 information unavailable.
153
CITY OF DUBUQUE, IOWA
FULL -TIME EQUIVALENT CITY GOVERNMENT EMPLOYEES BY FUNCTION/DEPARTMENT
LAST TEN FISCAL YEARS
2004 2005 2006 2007
Pulic Safety
Emergency Communications 10.00 10.00 11.00 11.00
Fire 90.00 90.00 90.00 90.00
Police 97.00 97.00 99.00 100.00
Building Services 7.00 7.00 7.00 7.00
Public Works
Public Works 87.30 88.55 87.00 87.00
Engineering 24.00 24.00 25.00 25.00
Health & Social Services
Health Services 5.00 5.00 5.00 5.00
Human Rights 2.00 2.00 3.00 3.00
Cultural and Recreation
Civic Center 9.15 9.15 1.15 0.15
Library 18.00 18.00 18.00 18.00
Park 21.92 21.92 21.92 21.92
Recreation 8.93 8.93 8.93 7.93
Community & Economic Development
Community / Economic Dev 3.00 3.00 3.00 3.00
Housing Services 20.00 21.00 21.00 20.25
Planning Services 7.00 7.00 8.00 8.00
General Government
Airport 13.00 13.00 13.00 13.23
Cable TV 2.00 2.00 2.00 2.00
City Clerk's Office 3.00 3.00 3.00 3.00
City Manager's Office 10.00 10.00 11.00 11.00
Finance 15.00 14.00 14.00 14.00
Legal 2.00 2.00 2.62 3.00
Information Services 6.00 6.00 6.00 6.00
Business Type
Water 23.00 23.00 23.00 23.00
*Water & Resource Recovery Center 18.00 18.00 18.00 18.00
Parking 10.50 10.50 8.00 8.00
Transit 7.00 7.00 8.55 8.00
Total 519.80 521.05 518.17 516.48
Source: City Budget Records
Departments with employees who are allocated to more than one function are reflected in the area with largest number of employees.
*Department renamed in 2011. Formerly known as the Water Pollution Control Plant.
154
TABLE 19
Full -Time Equivalent as of June 30
2008 2009 2010 2011 2012 2013
11.00 13.00 13.00 13.00 13.00 13.00
90.00 90.00 90.00 90.00 90.00 90.00
101.00 108.67 110.84 113.34 114.25 115.00
7.00 8.00 8.00 9.00 9.00 9.00
87.00 88.00 87.42 87.42 87.42 86.17
25.00 26.00 26.00 27.00 27.00 29.00
4.00 4.00 4.00 4.00 4.00 4.00
3.00 3.00 3.00 3.00 4.00 5.00
0.15 0.15 0.15 0.15 0.15 0.15
18.00 18.00 18.00 18.00 18.00 19.00
21.92 21.92 22.51 22.50 23.50 23.50
7.93 7.93 8.43 8.93 9.93 9.93
3.00 3.00 3.00 3.00 3.00 3.00
18.00 22.00 22.00 22.25 23.00 25.80
8.00 8.00 8.00 8.00 8.00 8.00
12.00 12.00 12.00 12.00 12.00 12.00
2.00 2.00 2.00 2.00 2.00 2.00
3.00 3.00 3.00 3.00 3.00 3.00
11.00 13.50 15.00 15.00 14.00 15.00
14.00 14.00 14.00 14.00 14.00 14.00
3.00 4.00 4.66 5.00 5.00 5.00
7.00 7.00 7.00 7.00 7.00 7.50
23.00 23.00 24.00 25.00 25.00 25.00
18.00 18.00 18.00 18.00 18.00 18.00
7.00 7.50 9.00 9.00 9.00 9.00
7.00 7.00 6.00 7.00 6.00 6.00
512.00 532.67 539.01 546.59 549.25 557.05
155
CITY OF DUBUQUE, IOWA
OPERATING INDICATORS BY FUNCTION /PROGRAM
LAST TEN FISCAL YEARS
Public Safety
Police
Physical arrests
Traffic violations
Parking violations
Fiscal Year
2004 2005 2006 2007
4,550 4,795 4,790 5,078
2,427 2,171 8,398 6,842
49,985 51,004 46,575 42,530
Fire
Number of calls answered 4,181 4,300 4,176 4,454
Inspections conducted 408 1,135 409 360
Sewer
Sewage system
Daily average treatment in gallons
Maximum daily capacity of treatment plant in gallons
Water systems
Daily average consumption in gallons
Maximum daily capacity of plant in gallons
Refuse (Municipal Collection)
Tonnage
Sources: Various City Departments.
Statistics updated for fiscal year 2006, 2007 & 2008.
8,000,000 8,500,000 8,500,000 8,000,000
15, 000,000 13, 500,000 13, 500,000 13, 500,000
8,000,000 7,720,000 8,057,000 7,950,000
18, 000,000 18, 000,000 18, 000,000 18, 000,000
10,330 10,428 10,573 1 0,807
156
TABLE 20
2008 2009 2010 2011 2012 2013
5,090 6,325 6,365 6,350 6,319 6,106
6,881 8,801 8,901 12,289 11,836 12,089
40,741 36,457 37,056 35,799 34,910 35,516
4,699 4,480 4,557 4,844 5,307 4,792
624 443 1,035 555 589 512
10,310,000 7,981,000 9,068,000 8,132,000 7,817,000 10,987,000
13,500,000 21,131,000 21,131,000 23,240,000 23,240,000 23,240,000
7,812,000 7,845,000 7,684,000 7,636,000 7,226,000 6,953,000
17, 000,000 18, 000,000 18, 000,000 18, 000,000 18, 000,000 18,000,000
11,798 10, 7 74 10,615 10,660 11,180 10,535
157
CITY OF DUBUQUE, IOWA
CAPITAL ASSETS BY FUNCTION
LAST TEN FISCAL YEARS
Fiscal Year
2004 2005 2006 2007
Public safety
Police
Stations 1 1 1 1
Patrol units 18 19 19 19
Fire
Stations 6 6 6 6
Aerial trucks 3 3 3 3
Public works
Streets
Miles (1) 290 290 295 307
Street lights (1) 1,591 1,631 1,755 1,802
Health and social sery ices
Hospital 2 2 2 2
Number of patient beds 560 421 421 405
Cultural and recreation
Library 1 1 1 1
Golf 1 1 1 1
Parks 42 44 44 47
Acreage 850 855 845 898
Recreation
Civic center 1 1 1 1
Swimming pools 2 2 2 2
Softball fields 7 7 7 8
Baseball fields 1 1 1 1
Tennis courts 20 20 19 19
Sewer
Sewage system
Miles of sanitary sewer (1) * * 263 286
Miles of storm sewers (1) * * 116 120
Number of treatment plants 1 1 1 1
Number of service connectors 21,000 21,000 21,443 21,568
Water systems
Miles of water mains 310 312 313 315
Number of service connectors 21,206 21,016 21,257 21,210
Number of city owned fire hydrants 2,736 2,770 2,780 2,798
Sources: Various City Departments.
(1) City GIS System
*Information not available
158
TABLE 21
2008 2009 2010 2011 2012 2013
1 1 1 1 1 1
19 19 22 22 22 22
6 6 6 6 6 6
3 3 3 3 3 3
317 320 321 325 328 329
1,855 1,877 1,916 1,931 2,081 2,084
2 2 2 2 2 2
405 405 389 389 389 389
1 1 1 1 1 1
1 1 1 1 1 1
47 47 48 48 51 51
898 898 901 901 1,001 1,001
1 1 1 1 1 1
2 2 2 2 2 2
7 7 7 7 7 7
1 1 1 1 1 1
20 20 20 20 20 20
290 295 300 300 304 304
122 143 144 150 155 141
1 1 1 1 1 1
21,633 21,347 21,599 21,702 22,393 22,428
316 317 318 319 319.75 321.02
21,243 21,347 21,986 22,092 22,161 22,536
2,812 2,831 2,843 2,854 2,863 2,879
159
160
Compliance Section
June 30, 2013
City of Dubuque, Iowa
161
162
EideBailly
CPAs Cu BUSINESS ADVISORS
Independent Auditor's 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, 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 the governmental
activities, the business -type activities, the discretely presented component units, each major fund, and the
aggregate remaining fund information of the City of Dubuque, Iowa, as of and for the year ended June 30,
2013, and the related notes to the financial statements, which collectively comprise City's basic financial
statements, and have issued our report thereon dated January 15, 2014.
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
In planning and performing our audit of the financial statements, we considered the City's internal control
over financial reporting (internal control) to determine the audit procedures that are appropriate in the
circumstances for the purpose of expressing our opinions on the financial statements, but not for the
purpose of expressing an opinion on the effectiveness of the City's internal control. Accordingly, we do
not express an opinion on the effectiveness of the City's internal control.
Our consideration of internal control 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 material weaknesses or significant deficiencies and therefore, material weaknesses
or significant deficiencies may exist that were not identified. However, as described in the accompanying
schedule of findings and questioned costs, we identified a certain deficiency in internal control that we
consider to be a material weakness.
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163
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 entity'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 2013 -A 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.
Compliance and Other Matters
As part of obtaining reasonable assurance about whether the City's financial statements are free from
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.
Comments involving statutory and other legal matters about the City's operations for the year ended
June 30, 2013 are based exclusively on knowledge obtained from procedures performed during our audit
of the financial statements of the City and are reported in Part IV of the accompanying schedule of
findings and questioned costs. Since our audit was based on tests and samples, not all transactions that
might have had an impact on the comments were necessarily audited. The comments involving statutory
and other legal matters are not intended to constitute legal interpretations of those statutes.
City's Response to Findings
The City's responses to the findings identified in our audit are described in the accompanying schedule of
findings and questioned costs. The City's responses were not subjected to the auditing procedures applied
in the audit of the financial statements and, accordingly, we express no opinion on them.
Purpose of this Report
The purpose of this report is solely to describe the scope of our testing of internal control and compliance
and the results of that testing, and not to provide an opinion on the effectiveness of the City's internal
control or on compliance. This report is an integral part of an audit performed in accordance with
Government Auditing Standards in considering the City's internal control and compliance. Accordingly,
this communication is not suitable for any other purpose.
-,k-,, 2 , rs
Dubuque, Iowa
January 15, 2014
164
EideBailly
CPAs Cu BUSINESS ADVISORS
Independent Auditor's Report on Compliance for Each Major Federal Program and Report on
Internal Control over Compliance Required by OMB Circular A -133
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Report on Compliance for Each Major Federal Program
We have audited the City of Dubuque, Iowa's (City) compliance 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, 2013. The City's
major federal programs are identified in the summary of auditor's results section of the accompanying
schedule of findings and questioned costs.
Management's Responsibility
Management is responsible for compliance
grants applicable to its federal programs.
th the requirements of laws, regulations, contracts and
Auditor's Responsibility
Our responsibility is to express an opinion on the compliance for each of the City's major federal
programs based on our audit of the types of compliance requirements referred to above. 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
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 on compliance for each major
federal program. However, our audit does not provide a legal determination of the City's compliance.
Opinion on Each Major Federal Program
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, 2013.
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165
Report on Internal Control over Compliance
Management of the City is responsible for establishing and maintaining effective internal control over
compliance with the compliance requirements referred to above. In planning and performing our audit of
compliance, we considered the City's internal control over compliance with the types of requirements that
could have a direct and material effect on each major federal program to determine the auditing
procedures that are appropriate in the circumstances for the purpose of expressing an opinion on
compliance for each major federal program 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 compliance requirement will not be prevented,
or detected and corrected, on a timely basis. A significant deficiency in internal control over compliance
is a deficiency, or a combination of deficiencies, in internal control over compliance with a type of
compliance requirement of a federal program that is less severe than a material weakness in internal
control over compliance, yet important enough to merit attention by those charged with governance.
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 that might be
material weaknesses or significant deficiencies. We did not identify any deficiencies in internal control
over compliance that we consider to be material weaknesses. However, material weaknesses may exist
that have not been identified.
The purpose of this report on internal control over compliance is solely to describe the scope of our
testing of internal control over compliance and the results of that testing based on the requirements of
OMB Circular A -133. Accordingly, this report is not suitable for any other purpose.
e-,e,-,, 2 , rs
Dubuque, Iowa
January 15, 2014
166
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
Grantor /Program
U.S. Department of Housing and Urban Development.
Direct program:
Community Development Block
Grants/Entitlement Grants
Community Development Block
Grants/Entitlement Grants
Federal Pass - Through
CFDA Entity Identifying Federal
Number Number Expenditures
14.218
14.218
$ 1,136,303
267,789
1,404,092
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 2,128,695
Community Development Block Grants/
State's Program and Non - Entitlement
Grants in Hawaii 14.228 08 -NSP -019 247,561
2,376,256
Direct program:
Shelter Plus Care 14.238 62,301
Lower Income Housing Assistance Program -
Section 8 Moderate Rehabilitation 14.856 72,326
Section 8 Housing Choice Vouchers 14.871 2,922,206
Section 8 Housing Choice Vouchers 14.871 461,452
Section 8 Housing Choice Vouchers 14.871 120,870
3,504,528
Lead -Based Paint Hazard Control in
Privately -Owned Housing 14.900 999,994
Healthy Homes Production Grant Program 14.913 447,042
Total U.S. Department of Housing and Urban
Development 8,866,539
167
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
Grantor /Program
U.S. Department of the Interior
Pass - through program from:
Iowa Department of Natural Resources:
Sportfishing and Boating Safety Act
U.S. Department of Justice:
Direct program:
Violence Against Women Formula Grants
Federal Pass - Through
CFDA Entity Identifying Federal
Number Number Expenditures
15.622 CRD825MKONRA110303 $ 180,081
16.588 2,697
JAG Program Cluster:
Direct program:
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 16,148
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 15,789
Edward Byrne Memorial Justice
Assistance Grant Program 16.738 24,907
56,844
Pass - through program from:
Iowa Department of Justice:
ARRA - Recovery Act - Edward Byrne
Memorial Justice Assistance Grant
(JAG) Program/Grants to States
and Territories 16.803 10JAG /ARRA -41940 42,538
Total JAG Program Cluster 99,382
Total U.S. Department of Justice
102,079
U.S. Department of Transportation:
Direct program:
Airport Improvement Program 20.106 2,801,243
Airport Improvement Program 20.106 1,257,352
Airport Improvement Program 20.106 814,163
Airport Improvement Program 20.106 339,597
Airport Improvement Program 20.106 29,877
Airport Improvement Program 20.106 29,416
Airport Improvement Program 20.106 14,387
5,286,035
168
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
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
Highway Planning and Construction
Highway Planning and Construction
Highway Planning and Construction
Federal Transit Cluster:
Direct program:
Federal Transit - Capital Investment
Grants
Federal Transit - Formula Grants
Pass - through program from:
Iowa Department of Transportation:
Federal Transit - Formula Grants
Federal Transit - Formula Grants
Total Federal Transit Cluster
Federal
CFDA
Number
Pass - Through
Entity Identifying
Number
20.205 HDP- 2100 - (655) -71 -31
20.205 STP -U- 2100(643)- -70 -31
20.205 BROS- 2100(659)- -8J -31
20.205 STP -A -PA- 27(4)86 -31
20.205 SRTS -U- 2100(663)- -8U -31
20.205 STP -E- 2100(623)- -70 -31
20.205 ESL - 2100 - (646) -75 -31
20.205 STP -U- 2100(634)- -70 -31
20.205 STP -A- 061 - 8(128) -22 -31
20.205 UYC -11 -001
20.205 HDP- 2100 - (661) -71 -31
20.500
20.507
20.507 IA -95- X003 - 210 -10
20.507 IA -95- X003 - 210 -12
Federal Services Programs Cluster:
Pass - through program from:
Iowa Department of Transportation:
Capital Assistance Program for Elderly
Persons and Persons with Disabilities 20.513
New Freedom Program 20.521
New Freedom Program 20.521
Total Federal Se
Cluster
ces Programs
IA -16- X002 - 210 -13
IA -57- 009 - 210 -13
IA -57- X009 - 210 -12
Federal
Expenditures
$ 691,715
524,979
164,846
81,471
54,189
26,508
24,407
14,714
12,750
5,018
772
1,601,369
411,240
945,516
63,535
168,346
1,177,397
1,588,637
31,180
87,539
19,281
106,820
138,000
169
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
Grantor /Program
Federal Pass - Through
CFDA Entity Identifying Federal
Number Number Expenditures
U.S. Department of Transportation: (continued)
Direct program:
Clean Fuels 20.519 $ 47,282
State and Community Highway Safety 20.600 7,658
State and Community Highway Safety 20.600 5,926
13,584
Total U.S. Department of Transportation 8,674,907
National Endowment for the Arts
Direct Program:
Promotion of the Arts - Grants to Organizations
and Individuals
100,000
Environmental Protection Agency:
Direct program:
Climate Showcase Communities Grant
Program 66.041 137,253
Pass - through program from:
Iowa Finance Authority:
Capitalization Grants for Clean Water
State Revolving Funds 66.458 CS- 192427 -01 11,246,025
ARRA - Capitalization Grants for Clean
Water State Revolving Funds 66.458 CS- 192421 -01 729,000
11,975,025
Total Environmental Protection Agency 12,112,278
U.S. Department of Energy:
Direct program:
ARRA - Energy Efficiency and Conservation
Block Grant Program
81.128 5,303
170
City of Dubuque
Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
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
Iowa Department of Public Health:
Environmental Public Health and
Emergency Response
Iowa Department of Human Sery ices
Substance Abuse and Mental
Health Services
Total U.S. Department of Health and Human Services
Federal Pass - Through
CFDA Entity Identifying Federal
Number Number Expenditures
93.069
93.069
93.070
93.243
5882BT31 $ 2,271
5883BT31 1,991
4,262
5883LP03 550
5883CP12 2,560
7,372
Corporation for National and Community Service:
Pass - through program from:
Iowa Commission on Volunteers:
AmeriCorps 94.006 12-AC-13 158,485
AmeriCorps 94.006 11 -AC-13 41,736
200,221
Iowa Economic Development
Volunteer Generation Fund 94.021 12- VGF -N6 4,301
Total Corporation for National and Community Service 204,522
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 71,377
Hazard Mitigation Grant 97.039 HMPG -DR- 1930 -31 -01 201,179
Direct program:
Assistance to Firefighters Grant 97.044 11,523
Assistance to Firefighters Grant 97.044 28,960
40,483
Total U.S. Department of Homeland Security 313,039
Total $ 30,566,120
171
City of Dubuque
Notes to the Schedule of Expenditures of Federal Awards
Year Ended June 30, 2013
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 modified 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. The City received federal awards both directly from federal agencies and indirectly
through pass - through entities. Federal financial assistance provided to a subrecipient is treated as an expenditure
when it is paid to the subrecipient.
Governmental fund types account for the City's federal grant activity. Therefore, expenditures in the schedule of
expenditures of federal awards are recognized on the modified accrual basis — when they become a demand on
current available financial resources. The City's summary of significant accounting policies is presented in Note 1
in the City's 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
Federal Amount
CFDA Provided to
Number Subrecipients
14.218 $ 59,145
172
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2013
Part I: Summary of the Independent Auditor's Results:
Financial Statements
Type of auditor's report issued
Internal control over financial reporting:
Material weaknesses identified
Significant deficiencies identified not
considered to be material weaknesses
Noncompl
ance material to financ
Federal Awards
al statements noted?
Internal control over major programs:
Material weaknesses identified
Significant deficiencies identified not
considered to be material weaknesses
Type of auditor's report issued on compliance for major programs:
Unmodified
Yes
None reported
No
No
None reported
Unmodified
Any audit findings disclosed that are required to be reported in
accordance with OMB Circular A -133 §.510(a): No
Identification of major programs:
Name of Federal Program
Community Development Block Grants /Entitlement Grants
CFDA Number
14.218
Lead -Based Paint Hazard Control in Privately -Owned Housing 14.900
Highway Planning and Construction 20.205
ARRA - Capitalization Grants for Clean Water State Revolving Funds 66.458
Dollar threshold used to distinguish between type A
and type B programs: $916,984
Auditee qualified as low -risk auditee? No
173
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2013
Part II: Findings Related to the Financial Statements:
MATERIAL WEAKNESS
2013 -A Material Audit Adjustment
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 proposed a material audit adjustment to net
position balances that were not 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.
Cause — There is a limited number of office employees with varying levels of experience with the
reporting requirements. In addition, management's review of the balances was not performed
before giving the balances to the auditors.
Effect — The effect of this condition was financial data not in accordance with generally accepted
accounting principles.
Recommendation — We recommend that finance staff continue to receive relevant training and that
management review all documentation for use in preparing the financial statements timely.
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.
Staffing will be reviewed in future budgets.
Part III: Findings and Questioned Costs for Federal Awards:
There were no findings and questioned costs to report.
174
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2013
Part IV: Other Findings Related to Required Statutory Reporting:
2013 -IA -A Certified Budget — Functional disbursements during the year ended June 30, 2013, did not exceed
the amount budgeted.
2013 -IA -B 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.
2013 -IA -C Travel Expense — No expenditures of City money for travel expenses of spouses of City officials
or employees were noted.
2013 -IA -D Business Transactions — Business transactions between the City and City officials or employees
are detailed as follows:
Name, Title, and
Business Connection
Joleen Murphy, employee, spouse is
owner of Murphy Construction Group
Anne Link, employee, spouse is
owner of Link Hydraulic & Supply
Ric Jones, council member, owner of
RJ Productions
John Hefel, employee, spouse is owner of
A Frame of Mind Framing & Gallery
Andrew Fuerste - Henry, employee, brother
is Philip Henry
Transaction
Description
Amount
Construction $ 201,919
Parts and supplies 18,845
Services 1,850
Services 1,004
Services 50
In accordance with Chapter 362.5(3)(j) of the Code of Iowa, the transactions with A Frame of Mind
Framing & Gallery and Phillip Henry do not appear to represent conflicts of interest since total
transactions with each individual were less than $1,500 during the fiscal year. The transaction with
Murphy Construction Group does not appear to be a conflict of interest since it was entered into
through competitive bidding in accordance with Chapter 362.5(3) (d) of the Code of Iowa. The
transactions with Link Hydraulic & Supply and RJ Productions may represent a conflict of interest.
Recommendation — We recommend the City review the transactions with Link Hydraulic &
Supply and RJ Productions with legal counsel.
Response —The transactions with Link Hydraulic and Supply and RJ Productions are being
reviewed with legal counsel.
175
City of Dubuque
Schedule of Findings and Questioned Costs
Year Ended June 30, 2013
Part IV: Other Findings Related to Required Statutory Reporting: (continued)
2013 -IA -E 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.
2013 -IA -F Council Minutes — No transactions were found that we believe should have been approved in the
Council minutes but were not.
2013 -IA -G 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.
2013 -IA -H Urban Renewal Annual Report — The urban renewal annual report was properly approved and
certified to the Iowa Department of Management on or before December 1.
2013 -IA -I Revenue Notes — No instances of non - compliance with the sewer, water, or stormwater utility
revenue note provisions were noted.
2013 -IA -J Tax Increment Financing — Chapter 403.19 of the Code of Iowa provides a municipality shall
certify indebtedness to the County Auditor While performing our audit procedures, we noted
several amounts certified in the fall of 2012 that were based on incorrect calculations.
Recommendation — The City has certified the needed corrections in the fall 2013. To minimize the
likelihood of future errors, the City should implement additional controls over the management of
its approximately $150,000,000 in TIF indebtedness. Such controls should include increasing
supporting documentation for the amounts certified and formalizing a review and approval
procedure.
Response — The City identified and corrected the misreported debt amounts on City TIF Form 3 of
the County TIF Certification Form that was filed on December 2, 2013. The TIF form is prepared
from source documentation including general ledger reports, TIF development agreements and TIF
debt amortization schedules; however this error occurred due to formula issues in the internal
spreadsheet used to consolidate the source documentation. Due to time constraints from the State
TIF report also being due on December 1, 2012, this error was not caught prior to filing. The
internal spreadsheet has been corrected and the City will continue to prepare the TIF report from
the source documentation used in the past.
2013 -IA -K 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.
2013 -IA -L 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.
176
City of Dubuque
Summary Schedule of Prior Federal Audit Findings
Year Ended June 30, 2013
There were no prior year federal findings.
177
EideBailly
CPAs & BUSINESS ADVISORS
January 15, 2014
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, 2013. 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 solely on the reports 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 30, 2013.
Professional standards also require that we communicate to you the following information related to our
audit.
Significant Audit Findings
Qualitative Aspects of Accounting Practices
Management is responsible for the selection and use of appropriate accounting policies. The significant
accounting policies used by the City of Dubuque, Iowa, are described in Note 1 to the financial
statements. No significant new accounting policies were adopted, and the application of existing policies
was not changed during the year ended June 30, 2013. 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 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.
www.eidebailly.corn
3999 Pennsylvania Ave., Ste. 100 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 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 misstatement,
detected as a result of audit procedures, was corrected by management:
Sewage Disposal Works
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
2,347,720
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 January 15, 2014.
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.
To the Honorable Mayor and
Members of the City Council
City of Dubuque, Iowa
Page 3
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 Matters
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.
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
Dubuque, Iowa
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 22, 2014
INTRODUCTION
The Auditor's Communication with Those Charged with Governance letter was issued
by Eide Bailly LLP on January 15, 2014 and is hereby submitted. The letter is required
by AU 260 and was formally referred to as the management letter.
BACKGROUND
A separate section in the Comprehensive Annual Financial Report (CAFR) for Fiscal
Year 2013 details specific findings. Pages 173 -177 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 January 15, 2014
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.
2013 -A Material Audit Adjustment (Page 174 in CAFR)
The SRF debt associated with the mercury spill cleanup at the Water Resource and
Recovery Center was originally included in the net investment in capital assets
calculation and should not have been.
2013 -IA -D — Related Parties Transactions (Page 175 in CAFR)
During preparation for City audit, staff identified two 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 continues to review procedures to
be more proactive in identifying potential related party transactions.
2013 -IA -J Tax Increment Financing (Page 176 in CAFR)
Tax Increment Financing (TIF) certification of debt to the County contained an incorrect
calculation in the Fall of 2012. The information was corrected with the County TIF
Certification Form filed in December 2013.
KT /eml